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, 2013

Property Plant And Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

6. PROPERTY, PLANT AND EQUIPMENT

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


	Estimated Useful Life		2013		2012
	(in Years)
Land		n/a	$	10,463	$	10,463
Buildings		25		62,515		60,729
Machinery and equipment		3 to 25		198,611		198,571
Furniture and fixtures		3 to 5		5,143		4,928
Transportation equipment		3 to 5		3,224		3,139
Improvements		15		123,201		95,874
Construction in progress		n/a		7,450		20,397

				410,607		394,101
Less accumulated depreciation				187,052		164,885

			$	223,555	$	229,216

The Company leases certain equipment used in the normal course of its operations under month-to-month lease agreements cancelable only by the Company. During 2013, 2012, and 2011, the Company expensed $9.5 million, $7.7 million, and $1.9 million, respectively, related to these leases.

On June 10, 2013, the Company entered into a lease agreement with BRI 1825 Park Ten, LLC for certain office and parking facilities located in Houston, Texas to house its corporate office. Leased premises consist of office space of approximately 4,421 square feet. The term of the lease, which commenced August 1, 2013, is 64 months. The Company has an option to extend the lease term for a period of five (5) years after the expiration date. Additionally, on December 9, 2013, we entered into an amendment to the lease to effectively provide an additional 3,624 square feet of office space. The amendment, among other things, extends the term for both the existing premises and expansion premises to January 31, 2020. The schedule of minimum rental payments for operating leases is as follows:


2014	$	114,945.96
2015		117,156.48
2016		119,367.00
2017		121,577.52
2018		123,788.04

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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