Note 11 - Property and Equipment, Net

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

11. Property and Equipment, net

The following table presents the major classes of assets and total accumulated depreciation and depletion (in thousands):

December 31,	2022		2021 (1)
Equipment and vehicles	$	994,602	$	870,672
Quarry property		219,843		191,982
Land and land improvements		105,733		108,518
Buildings and leasehold improvements		103,658		96,180
Office furniture and equipment		82,465		75,043
Property and equipment		1,506,301		1,342,395
Less: accumulated depreciation and depletion		997,091		908,891
Property and equipment, net	$	509,210	$	433,504

(1) These balances do not include amounts held for sale (see Note 2).

Depreciation and depletion expense primarily included in cost of revenue in our consolidated statements of operations was $79.5 million, $97.7 million and $98.3 million for the years ended December 31, 2022, 2021 and 2020, respectively.

During 2021, we completed sale-leaseback transactions for three properties in California. The sale of these properties resulted in a $49.5 million gain on sales of property and equipment in the consolidated statements of operations for the year ended December 31, 2021.

As discussed in Note 1, we have asset retirement obligations, which are liabilities associated with our legally required obligations to reclaim owned and leased quarry property and related facilities. As of  December 31, 2022 and 2021, $1.8 million and $1.7 million, respectively, of our asset retirement obligations were included in accrued expenses and other current liabilities and $27.4 million and $23.3 million, respectively, were included in other long-term liabilities in the consolidated balance sheets. Of the amount included in other long-term liabilities as of  December 31, 2022, $11.9 million is expected to be settled by 2027 and the remaining is expected to be settled thereafter. 

The following table summarizes the asset retirement obligation balances for the periods presented (in thousands):

Years Ended December 31,	2022			2021
Beginning balance	$	24,950		$	23,853
Revisions to estimates		4,904			1,596
Liabilities settled		(2,015	)		(1,708	)
Accretion		1,351			1,209
Ending balance	$	29,190		$	24,950