Property, Plant and Equipment

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant, and Equipment

Property, plant, and equipment at December 31, 2017 and 2016 consist of the following:

	2017		2016
Land	$	14,869	$	14,826
Improvements to land and leaseholds	17,415		17,408
Buildings	34,929		33,910
Machinery and equipment, including equipment under capitalized leases	120,806		118,060
Construction in progress	1,057		1,291
	189,076		185,495
Less: accumulated depreciation and amortization, including accumulated amortization of capitalized leases	92,980		81,522
	$	96,096	$	103,973

There were no impairments of property, plant, and equipment recorded during the years ended December 31, 2017 or 2015.

During the year ended December 31, 2016, the Company performed recoverability tests on reporting units when it was more likely than not that the carrying value of the long-lived asset group would not be recoverable. The results of our testing indicated that the long-lived assets related to the IOS business, within the Tubular and Energy Services segment, had carrying values in excess of the asset groups’ fair value. Based upon level 3 unobservable inputs, the Company incorporated assumptions that it believes would be a reasonable market participant’s view in a hypothetical purchase, to develop the discounted cash flows. Significant level 3 inputs included estimates of future revenue growth, gross margin, and EBITDA. As a result of the analysis, the Company recorded a $14,956 non-cash impairment of property, plant and equipment related to the IOS business.

Depreciation expense, including amortization of assets under capital leases, for the years ended December 31, 2017, 2016, and 2015 amounted to $12,849, $13,917, and $14,429, respectively.