Property and Equipment

3 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

The following is a summary of property and equipment at March 31, 2016 and December 31, 2015:



	March 31, 2016			December 31, 2015
Automobiles and trucks	$	2,506		$	2,749
Building and improvements	28,302			28,226
Construction equipment	162,857			159,963
Vessels and other equipment	85,133			89,485
Office equipment	6,245			6,057
	285,043			286,480
Less: accumulated depreciation	(167,143		)	(164,371		)
Net book value of depreciable assets	117,900			122,109
Construction in progress	9,880			5,649
Land	38,231			38,231
	$	166,011		$	165,989

For the three months ended March 31, 2016 and 2015, depreciation expense was $6.7 million and $5.4 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.

During 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 plan, 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 included 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 (expense) income” section of the Condensed Consolidated Statements of Operations. Approximately $6.4 million remain as held for sale on the Company's Consolidated Balance Sheets at March 31, 2016. The Company expects to dispose of the remaining assets within one year of the balance sheet date.