PROPERTY, PLANT AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2012

PROPERTY, PLANT AND EQUIPMENT, NET [Abstract]

Note 5:-

Property, plant and equipment, net

	December 31,
	2011		2012
Cost:
Machinery and manufacturing equipment, net(1)	$	90,005	$	97,252
Office equipment and furniture		4,705		6,521
Motor vehicles		1,495		1,316
Buildings and leasehold improvements		29,879		33,132
Prepaid expenses related to operating lease(2)		964		939

		127,048		139,160

Accumulated depreciation		57,391		66,173

Depreciated cost	$	69,657	$	72,987

(1)

Presented net of investment grant received in the amount of $7,200.

(2)

The Company leases land from the Israel Lands Administration ("ILA") for its Bar-Lev manufacturing facility. The lease term started on February 6, 2005. The lease is for an initial non-cancellable term of 49 years, in consideration for approximately $830 (approximately NIS 3,700) paid at the beginning of the contract's term, with a renewal option of an additional 49 years. The Company analyzed the conditions set forth in ASC 840-10 and classified the land as an operating lease (since the land is not transferred to the Company at the end of the lease nor is there any option to buy the land from the ILA at any point). All payments on account of the initial term were paid in advance (based on discounted values) at the beginning of the lease, and included in the minimum lease payments to be amortized. The prepaid expenses are amortized through the term of the lease, based on the straight-line method (including the bargain renewal option term),(See note 16(e)).

Depreciation expense totaled $9,500, $11,188 and $10,544 for the years ended December 31, 2010, 2011 and 2012, respectively.

For a discussion of the pledges made by the Company, see Note 12(d).

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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