Property, Plant and Equipment

12 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment are as follows (in thousands):



	December 31
	2012			2011
Land	$	1,442		$	1,220
Buildings and leasehold improvements	18,520			18,401
Machinery, equipment and rental tools	54,279			44,364
Equipment in progress	9,382			4,048
Furniture and fixtures	1,358			1,288
Transportation equipment	5,136			4,853
Computer equipment and software	6,743			1,900
Property and equipment	96,860			76,074
Less accumulated depreciation	(40,361		)	(32,160		)
Property and equipment, net	$	56,499		$	43,914

Depreciation expense, including expense recorded in cost of revenue, totaled $9.5 million, $8.0 million, and $11.3 million for the years ended December 31, 2012, 2011 and 2010, respectively.

Potential impairment of certain rental fixed assets within Drilling was identified in 2010 due to shifts in market demand. Drilling activity had become more concentrated in horizontal and directional drilling from the previously dominant vertical drilling. The estimated fair value of identified asset groups was calculated based on probability weighted future cash flows. Expected cash flows of each identified asset group took into consideration direct material cost margins and service costs, historic and expected utilization, and remaining useful life. In addition, the Company used a present value WACC technique to analyze the recoverability of the identified asset groups. The Company recognized impairment charges of $8.9 million during the year ended December 31, 2010 and a net loss on disposal of assets of $2.1 million.

During 2012 and 2011, no impairment was recognized related to property and equipment.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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