PROPERTY AND EQUIPMENT

6 Months Ended

Jun. 30, 2020

PROPERTY AND EQUIPMENT.

PROPERTY AND EQUIPMENT

NOTE 7 – PROPERTY AND EQUIPMENT

In accordance with ASC 360, “Impairment or Disposal of Long-Lived Assets,” the Company reviews its definite lived long-lived assets whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If the carrying amount of an asset or group of assets exceeds its net realizable value, the asset will be written down to its fair value and the amount recognized for impairment is equal to the difference between the carrying value and the asset’s fair value.

During the first quarter of 2020, the Company recorded an impairment charge of $4.0 million to state property and equipment at fair value

which related to the Specialized Solutions segment. The impairment charge is included in impairment in the consolidated statements of operations and comprehensive income (loss). See Note 3 for details.

The components of property and equipment are as follows as of June 30, 2020 and December 31, 2019 (in millions):

	June 30,		December 31,
	2020		2019
Revenue equipment	$	533.8	$	597.0
Assets leased and available for lease to owner-operators		73.7		64.3
Buildings and improvements		58.2		59.9
Furniture and fixtures, office and computer equipment and vehicles		34.8		40.2
		700.5		761.4
Accumulated depreciation		(311.9)		(322.4)
	$	388.6	$	439.0

Depreciation expense on property and equipment was $16.8 million and $30.8 million for the three months ended June 30, 2020 and 2019, respectively, and $37.2 million and $62.3 million for the six months ended June 30, 2020 and 2019, respectively. Depreciation expense and accumulated depreciation on assets leased and available for lease to owner-operators was $4.2 million and $5.1 million for the three months ended June 30, 2020 and 2019, respectively, and $8.3 million and $10.7 million for the six months ended June 30, 2020 and 2019, respectively.