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Property and Equipment
12 Months Ended
Dec. 31, 2020
Property and Equipment [Abstract]  
Property and Equipment

Note 6.  Property and Equipment



Property and equipment by major asset class consist of the following as of December 31, 2020 and 2019 (in thousands):







 

 

 

 

 

 



 

 

 

 

 

 



 

December 31,

 

December 31,



 

2020

 

2019

Land

 

$

1,695 

 

$

2,090 

Building and improvements

 

 

8,511 

 

 

12,242 

Machinery and equipment

 

 

18,211 

 

 

21,469 

Computers and software

 

 

2,374 

 

 

2,694 

Furniture and fixtures

 

 

1,150 

 

 

1,208 

Vehicles

 

 

442 

 

 

646 

Right of use assets - finance leases

 

 

8,020 

 

 

5,739 

Service equipment

 

 

244 

 

 

244 



 

 

40,647 

 

 

46,332 

Less: Accumulated depreciation and amortization

 

 

(16,312)

 

 

(14,333)



 

 

24,335 

 

 

31,999 

Construction in progress

 

 

100 

 

 

975 

Property and equipment, net

 

$

24,435 

 

$

32,974 



The following table presents the depreciation expense associated with the following income statement line items for the years ended December 31, 2020,  2019 and 2018 (in thousands):







 

 

 

 

 

 

 

 

 



 

Year Ended December 31,



 

2020

 

2019

 

2018

Cost of sales

 

 

 

 

 

 

 

 

 

Cost of product sales

 

$

1,679 

 

$

2,711 

 

$

2,003 

Cost of services

 

 

1,043 

 

 

1,266 

 

 

1,070 

Selling, general and administrative expenses

 

 

1,704 

 

 

1,900 

 

 

1,674 

Total depreciation

 

$

4,426 

 

$

5,877 

 

$

4,747 



We lease land and a building in addition to vehicles for our transportation fleet, which are included in the table above. See “Note 15. Leases”.



We evaluate our property and equipment for impairment whenever changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. We performed an impairment analysis to assess the recoverability of the carrying values for our property and equipment during the first quarter of 2020 because we determined that a triggering event had occurred. Evidence that led to a triggering event included the industry conditions, such as a reduction in global economic growth expectations, a significantly reduced demand for crude oil and refined products, the significant decline in commodity prices and the corresponding impact on future expectations of demand for our products and services primarily related to the COVID-19 pandemic as well as the resulting decline in the quoted price of our common stock. As a result of the analysis, we recorded an impairment charge of $9.7 million in our property and equipment, primarily related to our land, building and improvements and machinery and equipment, because the carrying value exceeded the estimated fair value as of March 31, 2020. We did not identify any triggering events after March 31, 2020 through December 31, 2020 that required further impairment testing. Therefore, we have not recorded any impairment charges since March 31, 2020. No impairment charges associated with our property and equipment were recorded for the years ended December 31, 2019 and 2018.