Discontinued Operations

6 Months Ended

Jun. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

3. Discontinued Operations

In 2015 we completed the Spin-off. In order to effect the Spin-off and govern our relationship with Exterran Corporation after the Spin-off, we entered into several agreements with Exterran Corporation which include, but are not limited to, the tax matters agreement. The tax matters agreement governs the respective rights, responsibilities and obligations of Exterran Corporation and us with respect to tax liabilities and benefits, tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings and certain other matters regarding taxes. Subject to the provisions of this agreement, we and Exterran Corporation agreed to indemnify the primary obligor of any return for tax periods beginning before and ending before or after the Spin-off (including any ongoing or future amendments and audits for these returns) for the portion of the tax liability (including interest and penalties) that relates to their respective operations reported in the filing.

As of June 30, 2019 and December 31, 2018, we had $8.5 million and $7.1 million, respectively, of unrecognized tax benefits (including interest and penalties) related to Exterran Corporation operations prior to the Spin-off recorded to noncurrent liabilities associated with discontinued operations in our condensed consolidated balance sheets. We had an offsetting indemnification asset of $8.5 million and $7.1 million related to these unrecognized tax benefits recorded to noncurrent assets associated with discontinued operations as of June 30, 2019 and December 31, 2018, respectively.

The following table summarizes the statements of operations data for discontinued operations (in thousands):



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Other income, net	$	—	$	(1,432	)
Provision for income taxes	—		1,705
Loss from discontinued operations, net of tax	$	—	$	(273	)

The following table summarizes the balance sheet data for discontinued operations (in thousands):



	June 30, 2019		December 31, 2018
Other current assets	$	—	$	300
Other assets	8,467		7,063
Total assets associated with discontinued operations	$	8,467	$	7,363

Accrued liabilities	$	269	$	297
Deferred income taxes	8,467		7,063
Total liabilities associated with discontinued operations	$	8,736	$	7,360