Property and Equipment

6 Months Ended

Jun. 30, 2017

Property, Plant and Equipment [Abstract]

The following is a summary of property and equipment at June 30, 2017 and December 31, 2016:



	June 30, 2017			December 31, 2016
Automobiles and trucks	$	2,219		$	2,525
Building and improvements	37,277			37,269
Construction equipment	164,373			165,023
Vessels and other equipment	89,313			88,659
Office equipment	7,472			7,125
	300,654			300,601
Less: accumulated depreciation	(188,996		)	(181,293		)
Net book value of depreciable assets	111,658			119,308
Construction in progress	1,612			543
Land	38,231			38,231
	$	151,501		$	158,082

For the three months ended June 30, 2017 and 2016, depreciation expense was $6.2 million and $6.8 million, respectively. For the six months ended June 30, 2017 and 2016, depreciation expense was $12.5 million and $13.6 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).

Substantially all of the Company’s long-lived assets are located in the United States.

The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. Assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or the fair value, less the costs to sell, and are no longer depreciated. During the six months ended June 30, 2017, approximately $5.0 million of these assets were sold for cash of $4.5 million. The difference of $0.5 million is classified as a loss on sale of assets on the Consolidated Statement of Operations. Approximately $1.4 million remain as held for sale on the Company's Consolidated Balance Sheet at June 30, 2017. The Company expects to dispose of the remaining assets within one year of the balance sheet date.