Annual report pursuant to Section 13 and 15(d)

Property and Equipment

v3.7.0.1
Property and Equipment
12 Months Ended
Dec. 31, 2016
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Disclosure [Text Block]
Note 7 - Property and Equipment
 
Property and equipment consist of the following at December 31:
 
 
 
Successor
2016
 
 
Predecessor
2015
 
(in thousands)
 
 
 
 
 
 
 
 
Land and improvements
 
$
400
 
 
$
1,420
 
Buildings and leasehold improvements
 
 
5,022
 
 
 
6,190
 
Machinery and equipment
 
 
15,712
 
 
 
21,502
 
Gross property and equipment
 
 
21,134
 
 
 
29,112
 
Less: Accumulated depreciation
 
 
(2,593)
 
 
 
(15,891)
 
Property and equipment, net of accumulated depreciation
 
$
18,541
 
 
$
13,221
 
 
The cost of assets recorded under capital leases was $6.2 million and $7.9 million at December 31, 2016 and 2015, respectively. Accumulated depreciation on these capital leases was $1.4 million and $4.7 million at December 31, 2016 and 2015, respectively. The depreciation expense from assets recorded under capital leases is included in depreciation.
 
Property and equipment, including purchases financed through capital leases, are recorded at cost and depreciated on a straight-line basis over their estimated useful lives -- buildings and leasehold improvements (5 to 40 years) and machinery and equipment (3 to 10 years). Expenditures for maintenance and repairs are expensed as incurred. Leasehold improvements for operating leases are amortized over the lesser of the term of the related lease or the estimated useful lives of the improvements.
 
Depreciation expense was $2.6 million for the period from July 20, 2016 through December 31, 2016 (Successor) and $1.6 million for the period from January 1, 2016 through July 19, 2016 (Predecessor) and $2.6 million for the year ended December 31, 2015  (Predecessor).
 
On December 30, 2016 the Company sold a building and land in Sanford, Florida for total consideration received in the amount of $2.0 million. As a result of that sales transaction, the Company recorded a net loss on the sale in the amount of $190 thousand which is recorded in the Successor Consolidated Statement of Operations for the period July 20, 2016 through December 31, 2016.