Property and Equipment

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

The following is a summary of the gross components of property and equipment (dollars in thousands):



		December 31,
	Estimated Useful Life	2015		2014

Vessels	15 to 30 years	$	1,944,753	$	1,657,448
ROVs, trenchers and ROVDrills	10 years	311,971		310,841
Machinery, equipment, buildings and leasehold improvements	5 to 30 years	288,133		273,155
Total property and equipment		$	2,544,857	$	2,241,444

In 2012, we entered into an agreement to sell our two remaining subsea construction pipelay vessels, the Caesar and the Express, and related pipelay equipment. In June 2013, we completed the sale of the Caesar and related equipment for $138.3 million and recorded a loss on disposal of $1.1 million. In July 2013, we completed the sale of the Express for $100 million, which resulted in a gain on disposal of $15.6 million.

In January 2014, we sold our spoolbase located in Ingleside, Texas for $45 million. In connection with this sale, we received $15 million in cash and a $30 million secured promissory note. Interest on the note is payable quarterly at a rate of 6% per annum. We received $2.5 million, $7.5 million and $10 million of principal payments on this note in December 2014, January 2015 and December 2015, respectively. Under the terms of the note, the remaining $10 million principal balance is required to be paid on December 31, 2016.

Our assessment at December 31, 2015 indicated impairment on the Helix 534 and the HP I. We impaired these assets based on the difference between the carrying amount and the estimated fair value. The fair value of the Helix 534 was based on its estimated salvage value according to current market pricing. We recorded an impairment charge of $205.2 million to reduce the carrying amount of the Helix 534 to its estimated fair value of $1.0 million and to write off deferred dry dock costs of $9.0 million associated with the Helix 534. We estimated the fair value of the HP I based on the present value of its expected future cash flows. We recorded an impairment charge of $133.4 million to reduce the carrying amount of the HP I to its estimated fair value of $124.3 million. In addition, we recorded impairment charges of $6.3 million to write off capitalized costs associated with certain vessel projects that we no longer expect to materialize.

In January 2016, we sold our office and warehouse property located in Aberdeen, Scotland for approximately $11 million. At the same time, we entered into a separate agreement to lease back the facility for 15 years with two five-year options to extend the lease.