Property and Equipment

9 Months Ended

Sep. 30, 2019

Property, Plant and Equipment [Abstract]

The following table summarizes the components of property and equipment (in thousands):


	September 30, 2019		December 31, 2018
Land	$	20,351	$	21,431
Buildings and improvements	40,392		40,524
Well service units and equipment	130,300		122,694
Fracturing/test tanks	119,999		123,550
Pumping equipment	102,294		103,689
Fluid services equipment	79,426		78,524
Disposal facilities	83,655		63,229
Rental equipment	65,775		62,642
Light vehicles	30,563		27,080

Brine and fresh water stations	4,374		3,296
Software	925		857
Other	4,415		4,257
Contract drilling equipment	—		9,846
Property and equipment, gross	682,469		661,619
Less accumulated depreciation and amortization	275,591		212,818
Property and equipment, net	$	406,878	$	448,801

Basic is obligated under various finance leases for certain vehicles and equipment that expire at various dates during the next five years. The table below summarizes the gross amount of property and equipment and related accumulated amortization recorded under finance leases and included above (in thousands):


	September 30, 2019		December 31, 2018
Fluid services equipment	$	35,595	$	35,034
Pumping equipment	22,958		48,929
Light vehicles	22,245		18,376
Rental equipment	1,131		—
Contract drilling equipment	—		314
Well service units and equipment	—		199
Property and equipment under finance lease, cost	81,929		102,852
Less accumulated amortization	30,000		31,954
Property and equipment under finance lease, net	$	51,929	$	70,898

During the period ended September 30, 2019, based on the Company's evaluation of the demand for contract drilling services, the Company's management decided to divest all nine of Basic's contract drilling rigs and related ancillary equipment, having a carrying value of $9.3 million. The Company determined that the carrying value of these assets may not be fully recoverable upon liquidation. The fair value of assets was determined after considering third-party estimates of expected liquidation value, and an impairment of $3.2 million was recognized on the consolidated statement of operations during the quarter ended September 30, 2019. The remaining carrying value of $6.1 million was transferred to assets held for sale, which is included in other current assets on the Company's consolidated balance sheets. The divestiture of the contract drilling rig assets does not represent part of Basic's asset base, revenue base, or a strategic shift for the Company. Basic's estimate of expected cash flows which may result from the sale of equipment may differ from actual cash received due to excess capacity in the industry.