Property, Plant and Mine Development

3 Months Ended

Mar. 31, 2020

Property, Plant and Equipment [Abstract]

NOTE H—PROPERTY, PLANT AND MINE DEVELOPMENT

At March 31, 2020 and December 31, 2019, property, plant and mine development (in thousands) consisted of the following:



	March 31, 2020			December 31, 2019
Mining property and mine development	$	788,574		$	794,899
Asset retirement cost	18,011			18,260
Land	57,494			57,082
Land improvements	74,027			73,203
Buildings	69,373			69,112
Machinery and equipment	1,177,350			1,152,898
Furniture and fixtures	4,071			4,068
Construction-in-progress	42,330			54,675
	2,231,230			2,224,197
Accumulated depletion, depreciation, amortization and impairment charges	(744,009		)	(706,610		)
Total property, plant and mine development, net	$	1,487,221		$	1,517,587

Depreciation, depletion, and amortization expense related to property, plant and mine development was $28.4 million and $34.2 million for the three months ended March 31, 2020 and 2019, respectively. At March 31, 2020 and December 31, 2019, the aggregate cost of machinery and equipment acquired under finance leases was $0.3 million and $0.3 million, respectively, reduced by accumulated depreciation of $0.2 million and $0.2 million, respectively. The amount of interest costs capitalized in property, plant and mine development was $33 thousand and $1.0 million for the three months ended March 31, 2020 and 2019, respectively.

During the first quarter of 2020, there was an unprecedented drop in global demand combined with the breakdown of the OPEC+ agreement to restrict oil production that led to one of the largest annual crude oil inventory builds in history. This led to sharp reductions in global crude oil prices. Containment measures and other economic, travel, and business disruptions caused by COVID-19 also affected refinery activity and future demand for crude oil, and consequently, the services and products of our Oil & Gas Proppants Segment. As a result of these events, we recorded impairment charges of $10.3 million related primarily to our Kosse, Texas facility, which has been idled. These impairment charges related to the Oil & Gas Proppants Segment and were recorded in "Goodwill and other asset impairments" in the Condensed Consolidated Statements of Operations.

On March 21, 2018, we completed the sale of three transload facilities located in the Permian, Eagle Ford, and Marcellus Basins to CIG Logistics (“CIG”) for total consideration of $86.1 million, including the assumption by CIG of $2.2 million of

Company obligations. Total cash consideration was $83.9 million. The consideration includes receipt of a vendor incentive from CIG to enter into master transloading service arrangements. Of the total consideration, $25.8 million was allocated to the fair value of the transload facilities, which had a net book value of $20.0 million and resulted in a gain on sale of $5.8 million. The consideration included a related asset retirement obligation of $2.1 million and an equipment note of $0.1 million assumed by CIG. In addition, $60.3 million of the consideration received in excess of the facilities' fair value was allocated to vendor incentives to be recognized as a reduction of costs using a service-level methodology over the contract lives of the transloading service arrangements. At March 31, 2020, vendor incentives of $21.1 million were classified in accounts payable and accrued expenses on our balance sheet.