Property and Equipment

9 Months Ended

Sep. 30, 2014

Property, Plant and Equipment [Abstract]

The following is a summary of property and equipment at September 30, 2014 and December 31, 2013:



	September 30, 2014			December 31, 2013
Automobiles and trucks	$	2,061		$	2,148
Building and improvements	28,413			22,828
Construction equipment	149,432			145,309
Dredges and dredging equipment	95,329			93,963
Office equipment	4,431			4,545
	279,666			268,793
Less: accumulated depreciation	(159,867		)	(144,121		)
Net book value of depreciable assets	119,799			124,672
Construction in progress	7,680			2,458
Land	36,992			14,793
	$	164,471		$	141,923

For the three months ended September 30, 2014, and 2013, depreciation expense was $6.3 million and $5.3 million, respectively, and for the nine month period, depreciation expense was $17.5 million and $15.8 million in 2014 and 2013, respectively. Substantially all depreciation expense is included in the cost of contract revenue in the Company’s Condensed Consolidated Statements of Operations. The assets of the Company are pledged as collateral under the Company's Credit Agreement (as defined in Note 10).

In February 2014, the Company purchased approximately 340 acres of land located in the upper Houston Ship Channel, Harris County, Texas for approximately $22 million. The site is being used as a private dredge material placement area, after certain improvements were completed in early 2014. The Company drew on the revolver portion of its credit facility to purchase the land. In September 2014, the Company purchased a dry-dock for approximately $3.5 million. This dry-dock is expected to replace an existing dry-dock owned by the Company and is expected to be placed in service during the fourth quarter of 2014. The Company drew on the revolver portion of its credit facility to purchase the dry- dock. It is expected that the financing will change to the term loan component of the credit facility in the fourth quarter of 2014.

The Company’s long-lived assets are substantially located in the United States.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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