Note 4 - Property, Plant and Equipment

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment Disclosure [Text Block]

Note 4 — Property, Plant and Equipment

Our investment in property, plant and equipment consisted of the following at December 31:

(In thousands)	2015			2014

Land	$	11,613		$	11,736
Buildings and improvements		122,514			98,492
Machinery and equipment		224,974			188,987
Computer hardware and software		29,688			27,431
Furnitures and fixtures		5,788			5,466
Construction in progress		20,950			40,628
		415,527			372,740
Less accumulated depreciation		(164,818	)		(146,860	)
		250,709			225,880

Composite mats (rental fleet)		100,341			90,321
Less accumulated depreciation-mats		(43,418	)		(32,840	)
		56,923			57,481

Property, plant and equipment, net	$	307,632		$	283,361

Depreciation expense was $39.3 million, $33.2 million and $29.4 million in 2015, 2014 and 2013, respectively.

In 2015, we incurred approximately $13 million of capital expenditures to complete the expansion of our mat manufacturing facility, located in Carencro, Louisiana, including a new research and development center, bringing our cumulative investment for this expansion project to approximately $46 million. In addition, we continued two capital investment projects announced in 2014 within the Fluids Systems segment. We invested approximately $20 million in a new fluid blending facility and distribution center located in Conroe, Texas, which will support the increasing demand for our proprietary fluid technologies, including our Evolution systems. This project was substantially completed in 2015 with the start-up of blending operations in early 2016. In addition, we are investing approximately $30 million to significantly expand existing capacity and upgrade the drilling fluids blending, storage and transfer capabilities in Fourchon, Louisiana, which serves the Gulf of Mexico deepwater market. This project is expected to be completed in 2016. Capital expenditures related to these two Fluids Systems projects were approximately $26 million in 2015.

In the fourth quarter of 2015, we recognized a $2.6 million charge reported in impairments and other charges related to assets at a Fluids Systems segment facility, following our decision to exit this facility.