Property and Equipment

9 Months Ended

Sep. 30, 2015

Property, Plant and Equipment [Abstract]

The following is a summary of property and equipment at September 30, 2015 and December 31, 2014:



	September 30, 2015			December 31, 2014
Automobiles and trucks	$	1,959		$	2,006
Building and improvements	48,190			28,641
Construction equipment	150,997			146,088
Dredges and dredging equipment	95,753			96,275
Office equipment	5,573			4,891
	302,472			277,901
Less: accumulated depreciation	(173,904		)	(161,276		)
Net book value of depreciable assets	128,568			116,625
Construction in progress	1,088			5,274
Land	34,265			39,874
	$	163,921		$	161,773

For the three months ended September 30, 2015 and 2014, depreciation expense was $6.2 million and $6.3 million, respectively. For the nine months ended September 30, 2015 and 2014, depreciation expense was $16.8 million and $17.5 million, respectively. Substantially all depreciation expense is included in the cost of contract revenue in the Company’s Condensed Consolidated Statements of Operations. Substantially all of the assets of the Company are pledged as collateral under the Company's Credit Agreement (as defined in Note 11).

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

In 2015, the Company committed to a plan to review property and equipment within the heavy civil marine construction segment and adopted a plan to dispose of underutilized assets. These assets have been separately presented in the Condensed Consolidated Balance Sheets as “Assets held for sale” and are no longer depreciated. In connection with this disposal, the Company determined that the carrying value of certain of these assets exceeded fair value, and consequently, the Company recorded an impairment loss of $1.7 million on those assets, which includes any expected costs to sell. Additionally, various other assets were identified as underutilized and will be sold for salvage value. The Company recorded an impairment loss of $0.9 million on those assets. These losses are recorded in the “Other” section of the Condensed Consolidated Statements of Operations.