Property, Plant and Equipment

3 Months Ended

Mar. 31, 2020

Property, Plant and Equipment [Abstract]

Property, plant and equipment include the following (in thousands):


		March 31,		December 31,
	Useful Life	2020		2019
Pressure pumping equipment	3-5 years	$	216,813	$	216,627
Drilling rigs and related equipment	3-15 years	116,252		117,783
Machinery and equipment	7-20 years	184,893		190,221
Buildings^(a)	15-39 years	45,352		47,859
Vehicles, trucks and trailers	5-10 years	129,700		135,724
Coil tubing equipment	4-10 years	27,462		29,438
Land	N/A	13,687		13,687
Land improvements	15 years or life of lease	10,135		10,135
Rail improvements	10-20 years	13,802		13,802
Other property and equipment^(b)	3-12 years	19,054		18,880
		777,150		794,156
Deposits on equipment and equipment in process of assembly^(c)		4,964		6,627
		782,114		800,783
Less: accumulated depreciation^(d)		466,046		448,011
Total property, plant and equipment, net		$	316,068	$	352,772

a. Included in Buildings at March 31, 2020 and December 31, 2019 are costs of $7.6 million and $6.7 million, respectively, related to assets under operating leases.

b. Included in Other property and equipment at each of March 31, 2020 and December 31, 2019 are costs of $6.5 million related to assets under operating leases.

c. Deposits on equipment and equipment in process of assembly represents deposits placed with vendors for equipment that is in the process of assembly and purchased equipment that is being outfitted for its intended use. The equipment is not yet placed in service.

d. Includes accumulated depreciation of $4.2 million and $3.5 million, respectively, at March 31, 2020 and December 31, 2019 related to assets under operating leases.

Impairment

Oil prices declined significantly in March 2020 as a result of geopolitical events that increased the supply of oil in the market as well as effects of the COVID-19 pandemic. As a result, the Company determined that it was more likely than not that the fair value of certain of its oilfield services assets were less than their carrying value. Therefore, the Company performed an interim impairment test. As a result of the test, the Company recorded the following impairments to its fixed assets during the three months ended March 31, 2020 (in thousands):


Water transfer equipment	$	4,203
Crude oil hauling equipment	3,275
Coil tubing equipment	2,160
Flowback equipment	1,514
Rental equipment	1,308
Other equipment	437
Total impairment of other long-lived assets	$	12,897

The Company measured the fair values of these assets using significant unobservable inputs (Level 3) based on an income approach. The Company did not record any impairment of other long-lived assets during the three months ended March 31, 2019.

Disposals

Proceeds from customers for horizontal and directional drilling services equipment damaged or lost down-hole are reflected in revenue with the carrying value of the related equipment charged to cost of service revenues and are reported as cash inflows from investing activities in the statement of cash flows. For the three months ended March 31, 2020 and

2019, proceeds from the sale of equipment damaged or lost down-hole were $0.4 million and a nominal amount, respectively, and gains on sales of equipment damaged or lost down-hole were $0.4 million and a nominal amount, respectively.

Proceeds from assets sold or disposed of as well as the carrying value of the related equipment are reflected in “other, net” on the unaudited condensed consolidated statement of comprehensive (loss) income. For the three months ended March 31, 2020 and 2019, proceeds from the sale of equipment were $0.6 million and $1.4 million, respectively, and gains (losses) from the sale or disposal of equipment were $0.3 million and ($0.1) million, respectively.

Depreciation, depletion, amortization and accretion

A summary of depreciation, depletion, amortization and accretion expense is below (in thousands):


	Three Months Ended March 31,
	2020		2019
Depreciation expense	$	25,600	$	28,066
Depletion expense	—		212
Amortization expense	253		284
Accretion expense	29		14
Depreciation, depletion, amortization and accretion	$	25,882	$	28,576