Property and Equipment and Identifiable Intangible Assets |
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment and Identifiable Intangible Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment and Identifiable Intangible Assets | (5) Property and Equipment and Identifiable Intangible Assets Property and Equipment Property and equipment consisted of the following (in thousands):
Depreciation is calculated using the straight-line method over the estimated useful lives of the assets as follows:
Depreciation expense on property and equipment was $49.4 million and $101.0 million for the three and six months ended June 30, 2019, respectively. We recognized $45.0 million and $84.5 million of depreciation expense on property and equipment for the three and six months ended June 30, 2018, respectively. As of June 30, 2019 and December 31, 2018, there was $7.5 million and $7.9 million, respectively, of property and equipment purchases in accounts payable and accrued liabilities. During the three and six months ended June 30, 2019, we recognized $1.5 million and $1.6 million of net losses on disposition of assets, respectively. During the three and six months ended June 30, 2018, we recognized $0.7 million and $11.1 million of net losses on disposition of assets, respectively. The net loss for the six months ended June 30, 2018 was primarily attributable to disposals of various property and equipment by the USA Compression Predecessor. During the six months ended June 30, 2019, we evaluated the future deployment of our idle fleet under then-current market conditions. As a result, we recorded $3.2 million in impairment of compression equipment for the six months ended June 30, 2019. The primary causes for this impairment were: (i) units were not considered marketable in the foreseeable future, (ii) units were subject to excessive maintenance costs or (iii) units were unlikely to be accepted by customers due to certain performance characteristics of the unit, such as the inability to meet then-current quoting criteria without excessive retrofitting costs. These compression units were written down to their respective estimated salvage values, if any. We did not record any impairment of long-lived assets during the three months ended June 30, 2019 or the three and six months ended June 30, 2018. Identifiable Intangible Assets Identifiable intangible assets, net consisted of the following (in thousands):
Accumulated amortization of intangible assets was $172.8 million and $158.1 million as of June 30, 2019 and December 31, 2018, respectively. The expected amortization of the intangible assets for each of the five succeeding years is $29.4 million. |