Property and Equipment

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

Property and Equipment

6.Property and Equipment

The following is a summary of property and equipment at September 30, 2022 and December 31, 2021:

	September 30,		December 31,
	2022		2021
Automobiles and trucks	$	2,306	$	2,337
Building and improvements		36,953		34,796
Construction equipment		132,268		137,786
Vessels and other equipment		85,016		82,455
Office equipment		6,840		6,430
		263,383		263,804
Less: Accumulated depreciation		(197,330)		(191,542)
Net book value of depreciable assets		66,053		72,262
Construction in progress		7,836		6,507
Land		27,885		27,885
	$	101,774	$	106,654

For the three months ended September 30, 2022 and 2021, depreciation expense was $4.9 million and $5.2 million, respectively. For the nine months ended September 30, 2022 and 2021, depreciation expense was $15.1 million and $15.7 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).

In the three and nine months ended September 30, 2022, the Company sold underutilized equipment . The book value of the assets and related accumulation were removed from the balance sheet and the Company recognized a net gain on the sales of $3.4 million and $4.6 million, respectively.

In the three and nine months ended September 30, 2021, the Company sold underutilized equipment . The book value of the assets and related accumulation were removed from the balance sheet and the Company recognized a net gain on the sales of $0.8 million and $3.1 million, respectively.

During the quarter ended June 30, 2021, the Company sold its land, building and improvements located in Tampa, Florida. The book value of the assets and related accumulation were removed from the balance sheet and the Company recognized a net gain on the sale of $6.7 million.

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

See Note 2 to the Company’s condensed consolidated financial statements for further discussion of property and equipment.