| PROPERTY, PLANT AND EQUIPMENT AND LEASED FACILITIES AND EQUIPMENT |
PROPERTY, PLANT AND EQUIPMENT AND LEASED FACILITIES AND EQUIPMENT
Property, plant and equipment
Property, plant and equipment consisted of the following at December 31, 2018 and 2017 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
Estimated
Useful Life
|
|
2018 |
|
2017 |
|
(in Years) |
|
|
|
|
Land |
- |
|
$ |
4,972 |
|
|
$ |
4,972 |
|
Buildings |
25 |
|
34,696 |
|
|
34,653 |
|
Machinery and equipment |
3 to 25 |
|
132,155 |
|
|
141,704 |
|
Furniture and fixtures |
3 to 5 |
|
2,497 |
|
|
4,450 |
|
Transportation equipment |
3 to 5 |
|
2,627 |
|
|
2,667 |
|
Improvements |
15 |
|
42,182 |
|
|
42,975 |
|
Construction in progress |
- |
|
1,944 |
|
|
96 |
|
Total property, plant and equipment |
|
|
221,073 |
|
|
231,517 |
|
Accumulated depreciation |
|
|
(141,143 |
) |
|
(142,618 |
) |
Property, plant and equipment, net |
|
|
$ |
79,930 |
|
|
$ |
88,899 |
|
Depreciation expense for 2018, 2017 and 2016, was $10.4 million, $12.9 million and $25.4 million, respectively. The reduction in depreciation expense for 2018 and 2017 is the result of classifying our South Texas Properties as assets held for sale during the first quarter of 2017, and suspending the recognition of depreciation expense for those assets.
Leased Facilities and Equipment
Lease expense for 2018, 2017 and 2016, was $1.9 million, $2.0 million and $2.5 million, respectively, related to our leased facilities and equipment. Our significant leases subject to long-term agreements are as follows:
|
|
• |
Corporate office lease in Houston, Texas consisting of approximately 17,000 square feet of office space. The lease expires in May 2025.
|
|
|
• |
Shipyard five miles east of Jennings, Louisiana, consisting of an 180-acre complex on the west bank of the Mermentau River approximately 25 miles north of the U.S. Intracoastal Waterway that we lease from a third party. The lease expires in January 2025 with two, ten-year renewal options that allows us to extend the lease through January 2045.
|
|
|
• |
Shipyard near Lake Charles, Louisiana, consisting of a ten-acre complex 17 miles from the GOM on the Calcasieu River, that we sublease from a third party. The sublease expires in July 2023 with three, five-year renewal options (subject to sublessor renewals), that allows us to extend the lease through July 2038.
|
Future minimum payments under leases having initial terms of one year or more are as follows (in thousands):
|
|
|
|
|
|
Minimum Payments |
2019 |
$ |
660 |
|
2020 |
672 |
|
2021 |
680 |
|
2022 |
578 |
|
2023 |
477 |
|
Thereafter |
557 |
|
Total |
$ |
3,624 |
|
|