PROPERTY AND EQUIPMENT

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



	December 31,
	2017			2016
Major classes of property and equipment:
Oilfield service equipment	$	260,396		$	267,648
Disposal wells	29,633			23,288
Motor vehicles	43,366			39,322
Furniture and equipment	5,456			8,835
Buildings and land	66,964			65,525
Work in progress	7,312			4,098
Gross property and equipment	413,127			408,716
Accumulated depreciation	(85,813		)	(3,565		)
Net property and equipment	$	327,314		$	405,151

Interest is capitalized on the average amount of accumulated expenditures for major capital projects under construction using an effective interest rate based on related debt until the underlying assets are placed into service. Capitalized interest for the year ended December 31, 2017, the period from December 16, 2016 through December 31, 2016, the period from January 1, 2016 through December 15, 2016 and the year ended December 31, 2015 was zero. As of December 31, 2017 and 2016, we have no capital lease obligations.

The decline in market value of our common stock in comparison to the carrying value of our assets during the third quarter of 2015 as well as the persistent low oil prices and the affect that low oil prices has on our industry were determined to be goodwill testing triggering events. These triggering events required us to perform step one of the goodwill impairment test to identify potential impairment. Our step one testing indicated potential impairment in our Coiled Tubing Services segment which required us to perform step two of the goodwill impairment test to determine the amount of impairment, if any. Our preliminary step two testing performed during the third quarter of 2015, using a discounted cash flow model to determine fair value, concluded that certain fixed assets were impaired. As a result, we recorded an estimated pre-tax charge of $45.0 million in the third quarter of 2015. During the fourth quarter of 2015 we finalized our step two testing, preliminarily performed in the third quarter of 2015, based on additional analysis performed by outside consultants. As a result, we recorded an additional pre-tax asset impairment charge of $6.1 million in the fourth quarter of 2015.