Property, Plant and Equipment

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment

Property, Plant and Equipment

5. Property, Plant and Equipment

        Property, plant and equipment consisted of the following (dollars in thousands):

	December 31,
	2014		2013
Land	$	67,278	$	67,278
Buildings		110,852		107,273
Central office equipment		177,283		149,940
Outside communications plant		334,179		290,201
Furniture, vehicles and other equipment		60,290		42,613
Construction in progress		28,214		24,557
Software		54,635		42,645
Other		10,858		4,857
		843,589		729,364
Less accumulated depreciation		277,633		204,989
Total property, plant and equipment, net	$	565,956	$	524,375

        Depreciation expense amounted to $75.1 million, $74.5 million and $68.2 million for the years ended December 31, 2014, 2013 and 2012, respectively.

        In 2014, the Company sold most of its radio towers for $2.9 million. The sale agreement includes a leaseback by the Company for a minimum of 10 years to allow it to continue to use the towers for radio equipment. The Company accounted for the sale as a financing transaction with the proceeds recognized primarily in other noncurrent liabilities.

        In February 2013, the Company entered into an agreement to sell a parcel of land and warehouse not actively used in the Company's operations for a purchase price, as amended, of $13.9 million. The sale was subject to due diligence by the buyer and approval of the HPUC. The HPUC approval was received in May 2013 and the sale was consummated in June 2013. The net proceeds, net of commissions and other costs paid through escrow of $0.8 million, amounted to $13.1 million. A gain on the sale of $6.5 million was recognized in 2013 as management concluded the land sold was not grouped with the assets subject to the composite depreciation method. The HPUC approval requires the Company to spend $0.3 million on training employees on broadband telecommunication deployment and operation. In addition, the HPUC approval provides for the Company to make improvements to its broadband network in an amount equal to the net proceeds less the training cost commitment. The training expenses and network capital spending are recognized as the costs are incurred.