Property and Equipment

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

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



	December 31, 2017			December 31, 2016
Automobiles and trucks	$	1,940		$	2,525
Building and improvements	38,062			37,269
Construction equipment	166,203			165,023
Vessels and other equipment	85,113			88,659
Office equipment	8,039			7,125
	299,357			300,601
Less: accumulated depreciation	(191,407		)	(181,293		)
Net book value of depreciable assets	107,950			119,308
Construction in progress	245			543
Land	38,083			38,231
	$	146,278		$	158,082

For the years ended December 31, 2017, 2016 and 2015, depreciation expense was $24.8 million, $26.9 million and $23.7 million, respectively. Substantially all depreciation expense is included in the cost of contract revenue in the Company’s 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.

During 2015, the Company committed to a plan to review property and equipment within the marine segment and adopted a plan to dispose of underutilized assets. In connection with this disposal, the Company determined that the carrying value of certain of these assets exceeded its fair value, and consequently, the Company recorded an impairment loss of $1.7 million on those assets during 2015, which included any expected costs to sell. Additionally, various other assets were identified as underutilized and were 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” section of the Consolidated Statements of Operations during the year ended December 31, 2015.

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. Approximately $6.4 million were classified as held for sale on the Company's Consolidated Balance Sheet at December 31, 2016. During the year ended December 31, 2017, approximately $5.4 million of these assets were sold for cash of $4.5 million. The difference of $0.9 million is classified as a loss on the sale of assets on the Consolidated Statements of Operations. The remaining assets held for sale of $1.0 million was classified as a total loss as a result of Hurricane Harvey. Insurance claims of approximately $0.9 million were received in the fourth quarter of 2017. The difference of $0.1 million is classified as a loss on disposal of assets on the Consolidated Statements of Operations. No assets remained as held for sale on the Company's Consolidated Balance Sheet at December 31, 2017.