2019 BBNC Annual Report - Page 67

(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 65