Property, Plant and Mine Development

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

NOTE H—PROPERTY, PLANT AND MINE DEVELOPMENT

At December 31, 2019 and December 31, 2018, property, plant and mine development (in thousands) consisted of the following:



	December 31, 2019			December 31, 2018
Mining property and mine development	$	794,899		$	995,759
Asset retirement cost	18,260			12,732
Land	57,082			55,502
Land improvements	73,203			67,729
Buildings	69,112			64,515
Machinery and equipment	1,152,898			958,357
Furniture and fixtures	4,068			3,599
Construction-in-progress	54,675			167,933
	2,224,197			2,326,126
Accumulated depletion, depreciation, amortization and impairment charges	(706,610		)	(499,823		)
Total property, plant and mine development, net	$	1,517,587		$	1,826,303

Depreciation, depletion, and amortization expense related to property, plant and mine development for the years ended December 31, 2019 and 2018 was $168.6 million and $139.1 million, respectively. At December 31, 2019 and December 31, 2018, the aggregate cost of machinery and equipment acquired under finance leases was $0.3 million and $0.5 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 $2.0 million and $6.7 million for the year ended December 31, 2019 and 2018, respectively.

During 2019, impairment charges of approximately $243.1 million were recorded mainly related to facilities that have reduced capacity or have been idled, including Tyler, Texas, Sparta, Wisconsin, and Utica, Illinois. During 2018, impairment charges of approximately $109.9 million were recorded mainly related to facilities that have reduced capacity or have been idled, including Voca, Texas, Fairchild, Wisconsin, Rochelle, Illinois, and Peru, Illinois. These charges relate to the Oil & Gas Segment and are recorded in "Goodwill and other asset impairments" in the Consolidated Statements of Operations. See Note Z - Impairments for additional information.

During 2019, management approved the disposal of certain non-operating parcels of land. The assets had a combined carrying value of approximately $1.3 million. The proceeds of the disposals were expected to exceed the net carrying value of the assets and, accordingly, no impairment loss was recognized on these assets held for sale. The assets were previously classified as Land, therefore, no adjustments were needed for depreciation of these assets. During the fourth quarter of 2019, we sold a portion of these assets at a gain of $0.6 million, which was recorded in Other income, net, including interest income in the Consolidated Statements of Operations. At December 31, 2019, the remaining balance of assets held for sale included in Prepaid expenses and other current assets in the Consolidated Balance Sheets is $0.1 million, which we expect to dispose of within one year of the balance sheet date.

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 December 31, 2019, vendor incentives of $26.6 million were classified in accounts payable and accrued expenses on our balance sheet. At December 31, 2018, vendor incentives of $12.5 million and $33.8 million were classified in accounts payable and accrued expenses and in other long-term obligations, respectively, on our balance sheet.

Separately, on March 21, 2018, we accrued $7.9 million in contract termination costs for facilities contracts operated by third-parties, which will not transfer to CIG. During the second quarter of 2018, as a result of the final settlement of these contracts, we recorded a $2.7 million credit in selling, general and administrative expenses on our Income Statement.