Property, Plant and Equipment

12 Months Ended

Dec. 31, 2021

Property Plant And Equipment [Abstract]

Property, Plant and Equipment

NOTE 5. PROPERTY, PLANT AND EQUIPMENT

Property, Plant and Equipment consist of the following at December 31:

(in thousands)	Range of useful lives	2021			2020
Land		$	7,171		$	7,333
Buildings and improvements	10-40 years		128,387			126,576
Machinery and equipment	2-25 years		375,860			377,782
Construction in progress			20,906			6,020
			532,324			517,711
Less: accumulated depreciation			(240,004	)		(229,167	)
Total property, plant and equipment, net		$	292,320		$	288,544

Depreciation expense for property and equipment, including assets under finance leases, was $30.6 million, $25.2 million and $23.9 million in 2021, 2020 and 2019, respectively.

Ola, Arkansas Sawmill Fire

On June 13, 2021, a fire occurred at our Ola, Arkansas sawmill. There were no injuries or environmental issues from the fire. The damage was principally limited to the large log primary breakdown area of the mill. The planer mill, kiln, and shipping department were not affected. We have adequate property damage and business interruption insurance, subject to an applicable deductible, under which we filed a claim with the insurance carriers.

Damaged and obsolete fixed asset write-offs, disposal costs, insurance recoveries for the Ola, Arkansas sawmill fire and net gain on fire damage consist of the following for the year-ended December 31, 2021:

(in thousands)
Fixed asset write-offs	$	(9,544	)
Disposal costs		(2,595	)
Total fixed asset loss on disposal		(12,139	)
Insurance recoveries		15,000
Net gain on fire damage at Ola		2,861
Net gain on timberlands fire damage		500
Net gain on fire damage	$	3,361

No business interruption recoveries were recorded during the year as discussions with the insurance carriers are ongoing. Business interruption recoveries will be recorded when deemed probable and reasonably estimable.

Sale of Deltic MDF Facility

In February 2019 we sold our Deltic Medium Density Fiberboard (MDF) facility to Roseburg Forest Products Co. for $92.0 million, consisting of $63.0 million in cash and assumption of $29.0 million of revenue bonds. The price was subject to post-closing adjustments for certain changes in working capital as defined in the purchase and sale agreement. The transaction resulted in a $9.2 million pre-tax gain on sale. Total cash proceeds received after working capital adjustments, closing costs and other expenses were approximately $59.8 million, of which $1.0 million was received in 2020 after satisfaction of certain covenants as outlined in the purchase and sale agreement. The sale of the MDF facility was not considered a strategic shift that had or will have a major effect on our operations or financial results and therefore did not meet the requirements for presentation as discontinued operations.