PROPERTY AND EQUIPMENT

6 Months Ended

Jun. 30, 2019

NOTE 7—PROPERTY AND EQUIPMENT

Property and equipment consists of the following as of June 30, 2019 and December 31, 2018:


	June 30, 2019		December 31, 2018
	(in thousands)
Land	$	16,030	$	17,799
Buildings and leasehold improvements		105,220		106,626
Vehicles and equipment		62,046		83,435
Vehicles and equipment - finance lease		1,599		1,833
Machinery and equipment		724,500		758,528
Machinery and equipment - finance lease		202		532
Computer equipment and software		17,044		15,775
Computer equipment and software - finance lease		356		356
Office furniture and equipment		4,614		4,612
Disposal wells		64,321		64,038
Other		497		497
Construction in progress		73,067		60,347
		1,069,496		1,114,378
Less accumulated depreciation⁽¹⁾		(603,191)		(611,530)
Property and equipment held-for-sale		1,906		—
Total property and equipment, net	$	468,211	$	502,848

(1)

Includes $1.7 million of accumulated depreciation related to finance leases.

During the Current Quarter, Prior Quarter, Current Period and Prior Period, depreciation expense was $26.8 million, $27.9 million, $56.3 million and $55.4 million, respectively. Depreciation of assets held under finance leases for the Current Quarter, Prior Quarter, Current Period and Prior Period was $0.5 million, $0.3 million, $0.7 million and $0.7 million, respectively, and is included in the totals above and in depreciation and amortization expense in the accompanying consolidated statements of operations.

Property and Equipment Held-for-Sale and Impairments

Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. During the first quarter of 2019, the Company made the decision to sell and wind down certain operations within its former Wellsite Services segment, including the operations of its Affirm subsidiary, its sand hauling operations and its Canadian operations. This decision led us to classify the property and equipment of these business as held-for-sale. All operations have been wound down, with $1.9 million remaining in held-for-sale as of June 30, 2019. The table below shows the property and equipment sold and divested as follows:


Type of sale event	Business	Net Book Value of Property and Equipment Sold or Divested
		(in thousands)
Business divestitures	Affirm subsidiary	$	11,275
Property and equipment sales	Affirm subsidiary		1,339
Business divestitures	Canadian operations		7,372
Property and equipment sales	Canadian operations		351
Property and equipment sales	Sand hauling operations		2,301
Total property and equipment sold and divested		$	22,638

During the Current Period, the Company recorded an impairment of $0.9 million of Canadian property and equipment to write down the carrying value based on the expected future sale proceeds. In addition, during the Current Period, the net loss on divestitures and sales of property and equipment held-for-sale was $2.8 million.