Property and Equipment

3 Months Ended

Mar. 31, 2012

The following is a summary of property and equipment at March 31, 2012 and December 31, 2011:



	March 31, 2012			December 31, 2011
Automobiles and trucks	$	1,642		$	1,541
Building and improvements	21,798			13,520
Construction equipment	132,597			132,317
Dredges and dredging equipment	98,126			96,278
Office equipment	3,952			3,882
	258,115			247,538
Less: accumulated depreciation	(124,735		)	(119,440		)
Net book value of depreciable assets	133,380			128,098
Construction in progress	8,790			8,655
Land	14,793			9,354
	$	156,963		$	146,107

For the three months ended March 31, 2012 and 2011, depreciation expense was $5.4 million and 5.5 million, respectively. Substantially all depreciation expense is included in the cost of contract revenue in the Company’s Condensed Consolidated Statements of Income. The assets of the Company are pledged as collateral for the Company’s line of credit.

In January 2012, the Company purchased approximately 18 acres of land, including buildings and improvements, from Lazarra Leasing, LLC ("Seller"). The property is located in Tampa, Florida, and was formerly partially rented by the Company.

The purchase price was $13.7 million and included the following items:


•	The Company, at its expense, will construct dock improvements at Seller's facility, in an amount not to exceed $279,700. Construction is to commence within 90 days of closing.


•	The Company shall rent a portion of the land retained by the Seller for an initial term of 20 years, with payment of of $250,000 for the entire term paid in advance.


•	Seller shall lease back three buildings for up to 24 months following the sale, with the first 12 months rent abated. Rent during the second twelve-month period shall be at $7.00 per square foot.

The Company drew $13 million on its revolving line of credit to purchase the property.

- 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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