(9) PROPERTY, PLANT, AND EQUIPMENT
Property, plant, and equipment, at cost, consist of the following at March 31 (in thousands):
Land
$
Buildings
2019 2018
19,377 17,327
48,663 47,149
Leasehold improvements 26,606 26,883
Machinery and equipment 190,463 182,077
285,109 273,436
(128,549) (125,092)
156,560 148,344
Less accumulated depreciation and amortization
$
The Corporation recorded depreciation and amortization expense of $17,166,000, $19,237,000 and $21,742,000 for
the years ended March 31, 2019, 2018 and 2017, respectively. For the years ended March 31, 2018 and 2017, certain
assets on the North Slope were abandoned and written-off or impaired in the amount of $3,292,000 and $8,916,000,
respectively, which is included in cost of Industrial Services.
(10) NOTES PAYABLE
Notes payable as of March 31 consists of the following (in thousands):
$15,000,000 bank line of credit, interest based at PC’s option at London
Interbank Offering Rate (LIBOR) plus 0.80% (3.29% at March 31, 2019),
secured by PC’s accounts receivable, commitment expires June 1, 2020
$
$1,000,000 short-term notes payable by PC to village corporations, interest
at 3.13%, notes due on October 31, 2018, guaranteed by the corporation
$
2019 2018
2,807 2,174
1,000 1,000
3,807 3,174
PC entered into the Fourth Amendment to the September 30, 2010, Wells Fargo line of credit as amended, effective
in May 2016. The maximum borrowings available under the facility are $15.0 million, and borrowing capacity was
determined on a borrowing base of 80% of eligible accounts receivable which secures the line of credit. For the years
ended March 31, 2019 and 2018, PC borrowed up to $6.5 and $4.1 million, respectively, against the line of credit. As
of March 31, 2019, PC’s eligible accounts receivable totaled $38.4 million. This amended line of credit expires on June
1, 2020, and includes financial covenant requirements that PC maintain a minimum tangible net worth and a minimum
fixed charge coverage ratio.
M anagement ' s D iscussion and A nalysis
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