Property and Equipment

9 Months Ended

Sep. 30, 2023

Property, Plant and Equipment [Abstract]

Property and Equipment

6.Property and Equipment

The following is a summary of property and equipment at September 30, 2023 and December 31, 2022:

	September 30,		December 31,
	2023		2022
Automobiles and trucks	$	2,008	$	2,232
Building and improvements		36,931		36,952
Construction equipment		125,521		130,660
Vessels and other equipment		91,308		91,495
Office equipment		6,909		6,885
		262,677		268,224
Less: Accumulated depreciation		(199,736)		(195,948)
Net book value of depreciable assets		62,941		72,276
Construction in progress		1,696		816
Land		24,948		27,885
	$	89,585	$	100,977

For the three months ended September 30, 2023 and 2022, depreciation expense was $4.5 million and $4.9 million, respectively. For the nine months ended September 30, 2023 and 2022, depreciation expense was $13.5 million and $15.1 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, 2023, the Company sold property and equipment. The book value of the assets and related accumulated depreciation were removed from the balance sheet and the Company recognized a net gain on the sales of $0.4 million and $7.0 million, respectively.

In the three and nine months ended September 30, 2022, the Company sold property and equipment. The book value of the assets and related accumulated depreciation 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.

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.