Property and Equipment

12 Months Ended

Dec. 31, 2013

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and Equipment

The following is a summary of property and equipment at December 31, 2013 and December 31, 2012:

	December 31, 2013			December 31, 2012
Automobiles and trucks	$	2,148		$	1,591
Building and improvements	22,828			22,037
Construction equipment	145,309			140,835
Dredges and dredging equipment	93,963			96,927
Office equipment	4,545			4,095
	268,793			265,485
Less: accumulated depreciation	(144,121		)	(136,556		)
Net book value of depreciable assets	124,672			128,929
Construction in progress	2,458			6,949
Land	14,793			14,793
	$	141,923		$	150,671

For the years ended December 31, 2013, 2012 and 2011, depreciation expense was $21.1 million, $21.5 million and $19.4 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 under the Company's Credit Agreement (as defined in Note 11).

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

The purchase price of $13.7 million included construction of dock improvements at Seller's facility, in an amount not to exceed $279,700; rental of a portion of the land retained by the Seller for an initial term of 20 years, with payment of $250,000 for the entire term paid in advance; and leaseback by the Seller of three buildings for up to 24 months following the sale, with the first 12 months rent abated.

As discussed in Note 3 (above), the Company purchased the assets of West Construction for approximately $9.3 million, which increased fixed assets by approximately $4.5 million.

The Company drew from its Credit Facility (as defined in Note 11) to purchase the Tampa property and finance the acquisition of West Construction.

In 2012, the Company adopted a plan to dispose of under-utilized equipment. These assets were separately presented in the Consolidated Balance Sheets as "Assets Held for Sale" and were no longer depreciated. The carrying value of certain of these assets exceeded fair value, and consequently, the Company recorded an impairment loss of $2.0 million on those assets. The loss is recorded in the "Other" section of the Consolidated Statements of Operations. During 2013, the Company received proceeds of $0.5 million from the sale of certain of these assets. Approximately $0.4 million remain as held for sale on the Company's Consolidated Balance Sheets at December 31, 2013. The Company expects to dispose of the remaining assets within one year of the balance sheet date.