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Property and Equipment
 12 Months Ended
Dec. 31, 2014
Property, Plant and Equipment [Abstract]  
Property and Equipment

4. PROPERTY AND EQUIPMENT:

Property and equipment consists of the following (in thousands):

 

     December 31,  
     2014      2013  

Land and improvements

    $ 23,689       $ 24,240   

Buildings

      42,368         42,763   

Machinery and equipment

      140,578         136,581   

Equipment under capital lease

      6,001         14,196   

Construction in progress

      4,183         14,115   
  

 

 

     

 

 

  
  216,819      231,895   

Less accumulated depreciation and amortization

   (84,224 )    (88,834 ) 
  

 

 

     

 

 

  

Property and equipment, net

 $ 132,595    $ 143,061   
  

 

 

     

 

 

  

Depreciation expense, which includes amortization of capital lease assets, was $13.6 million, $13.3 million, and $16.2 million for the years ended December 31, 2014, 2013, and 2012, respectively. Accumulated amortization associated with property and equipment under capital leases was $4.2 million and $4.9 million at December 31, 2014 and 2013, respectively.

Due to the impairment of its Tubular Products Group goodwill (see Note 5, “Goodwill and Intangible Assets”), the Company determined that an impairment triggering event as defined in ASC 360-10 had occurred for the asset groups included within the segment. The Company performed a recoverability test for each asset group, in which the carrying value of the asset group was compared against associated undiscounted future cash flows. This analysis determined that the carrying values of the asset groups were recoverable at December 31, 2014.

In conjunction with the preparation of its financial statements for the year ended December 31, 2013, the Company determined that an impairment triggering event as defined in ASC 360-10 had occurred for the assets located at its Bossier City, Louisiana facility due to increased competition in the OCTG market, pricing pressures from imported pipe, and growing inventory balances. This facility was included within our Tubular Products Group. The Company performed a recoverability test in which the carrying values of the asset groups were compared against the probability weighted undiscounted future cash flows of various future scenarios using Company-specific assumptions. The analysis determined that the carrying value of the asset group was not recoverable as the undiscounted cash flows were less than the carrying value of the asset group. The Company then compared the carrying value to the fair market value of the asset group. Management determined fair value using third-party appraisals, as discussed in Note 8. This analysis resulted in an impairment charge of $27.5 million, which is included in discontinued operations for 2013 as the related assets were sold as part of the sale of the OCTG business in March 2014.