Assets and Liabilities Held for Sale

6 Months Ended

Jun. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

In May 2020, the Company entered into an agreement for the sale of its corporate headquarters building located in Oklahoma City, OK. The Company expects the sale to be completed in the third quarter of 2020 after a due diligence period and result in proceeds of approximately $35.5 million. The agreement includes an earnest money provision to be provided by the buyer in an amount of $0.1 million.

In accordance with the applicable accounting guidance, FASB ASC 360-10-45-9, the Company reclassified its corporate headquarters building net carrying amount from Other property, plant and equipment, net, to Assets held for sale on the Condensed Consolidated Balance Sheets at June 30, 2020. The Company also reclassified the liabilities associated with the corporate headquarters building from Accounts payable and accrued expenses to Liabilities held for sale on the Condensed Consolidated Balance Sheets at June 30, 2020. Further we recorded an impairment charge of $38.0 million in the three-month period ended June 30, 2020 to write down the net carrying amount of the office headquarters building assets to their estimated fair value less estimated costs to sell the building. The impairment charge is included in the Impairment line item of the Condensed Consolidated Statements of Operations for the three and six-month periods ended June 30, 2020. No impairment charges were recorded for the corporate headquarters building assets in the three and six-month period ended June 30, 2019. Prior to the sale of the building, the carrying value of the building was assessed for impairment using undiscounted cash flow measures as prescribed under ASC 360-10-35, rather than fair value.

The table below sets forth an analysis of the Company's assets and liabilities held for sale at June 30, 2020 (in thousands):


Assets held for sale at June 30, 2020:






Net carrying amount before impairment			$	73,447
Less: asset write-down to fair value	$	(37,947)
Less: estimated cost of sale	(53)
Subtotal impairment charges			(38,000)
Assets held for sale balance at June 30, 2020			$	35,447

Liabilities held for sale at June 30, 2020:
Accounts payable			$	6
Accrued expenses			397
Liabilities held for sale balance at June 30, 2020			$	403