Gulf Island Fabrication, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Property, plant and equipment consisted of the following at December 31, (in thousands):



	Estimated Useful Life	2016		2015
	(in Years)
Land	-	$	10,463	$	10,463
Buildings	25	65,894		64,154
Machinery and equipment	3 to 25	238,029		223,521
Furniture and fixtures	3 to 5	5,570		5,354
Transportation equipment	3 to 5	3,814		3,481
Improvements	15	128,437		127,727
Construction in progress	-	5,303		2,488
Total cost		457,510		437,188
Less accumulated depreciation		251,288		236,804
Net book value		$	206,222	$	200,384

We lease certain equipment used in the normal course under month-to-month lease agreements cancelable only by us. During 2016, 2015, and 2014, we expensed $2.5 million, $5.9 million, and $5.6 million, respectively, related to these leases.

We lease our corporate office and parking facilities located in Houston, Texas. Leased premises consist of office space of approximately 8,000 square feet. The term of the lease matures on January 31, 2020. We also lease and/or sublease facilities in Lake Charles, Jennings and Houma, Louisiana. See note 2 "LEEVAC Transaction" for additional description of these leases. The schedule of minimum rental payments under our leases/sublease is as follows (in thousands):



	Minimum Payments
2017	$	852
2018	439
2019	325
2020	115
2021	96
Thereafter	295
Total	$	2,122