Note 5 – Property, Plant and Equipment

Property, plant and equipment consisted of the following:

 

(dollars in thousands)		March 31, 2016				December 31, 2015
Buildings		$	59,315			$	59,315
Machinery and equipment			47,638				47,234
Computer software			11,936				11,641
Computer equipment			4,241				4,055
Furniture and fixtures			1,591				1,585
Leasehold improvements			1,405				1,413
Land improvements			493				493
Land			346				346
Buildings improvements			118				86
Construction in progress			3,499				3,673
			130,582				129,841
Accumulated depreciation and amortization			(16,840	)			(14,681	)
Total		$	113,742			$	115,160

Depreciation and amortization expense was approximately $2.2 million and $1.9 million for the three months ended March 31, 2016 and 2015, respectively.

Note 4 – Property, Plant, and Equipment

Property, plant, and equipment consisted of the following at December 31:

 

(dollars in thousands)		2015				2014
Computer software		$	11,641			$	8,056
Computer equipment			4,055				3,589
Buildings			59,315				58,846
Machinery and equipment			47,234				44,702
Furniture and fixtures			1,585				1,429
Leasehold improvements			1,413				1,051
Buildings improvements			86				86
Land			346				346
Land improvements			493				784
Construction in progress			3,673				2,169
			129,841				121,058
Accumulated depreciation and amortization			(14,681	)			(7,195	)
Total		$	115,160			$	113,863

Depreciation and amortization expense was approximately $8.2 million, $4.9 million, and $1.3 million for the years ended December 31, 2015, 2014, and 2013, respectively.

 

During 2013, Heartland and Jasper County, Missouri (“Jasper”) entered into an agreement pursuant to which Jasper agreed to issue up to an aggregate principal amount of $55.0 million of industrial revenue bonds (“Bonds”) to be purchased by Heartland. As noted below, Jasper issued the bonds and used the proceeds from the Bonds to purchase manufacturing equipment from Heartland, which was then leased back to Heartland. As Heartland will become the owner of the equipment at the end of the lease term, the lease meets the requirements of a capital lease and the equipment is being recorded as property, plant, and equipment. The Company has the right and intends to set-off any obligation to make payments under the lease agreements with the proceeds due from the Bonds. As of December 31, 2015 and 2014 Jasper had issued, and Heartland had purchased, $55.0 million, of industrial revenue bonds and Jasper had purchased from, and leased back to, Heartland certain manufacturing equipment for a corresponding amount.