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DISCONTINUED OPERATIONS AND IMPAIRMENTS | 12 Months Ended
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Dec. 31, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | DISCONTINUED OPERATIONS AND IMPAIRMENTS On November 30, 2018, we sold our European Operations for approximately $270.0 million. The European Operations were previously reported in our storage segment. In association with the European Disposition, we recognized a non-cash loss of $43.4 million related to the sale in “(Loss) income from discontinued operations, net of tax” on the consolidated statement of income for the year ended December 31, 2018. On January 28, 2019, the U.S. Department of the Treasury’s Office of Foreign Assets Control added Petroleos de Venezuela, S.A. (PDVSA), at the time a customer at the St. Eustatius facility, to its List of Specially Designated Nationals and Blocked Persons (the SDN List). The inclusion of PDVSA on the SDN List required us to wind down our contracts with PDVSA. Prior to winding down such contracts, PDVSA was the St. Eustatius terminal’s largest customer. The effect of the sanctions issued against PDVSA, combined with the progression in the sale negotiations that occurred during March 2019, resulted in triggering events that caused us to evaluate the long-lived assets and goodwill associated with the St. Eustatius terminal and bunkering operations for potential impairment. With respect to the terminal operations long-lived assets, our estimates of future expected cash flows included the possibility of a near-term sale, as well as continuing to operate the terminal. The carrying value of the terminal’s long-lived assets exceeded our estimate of the total expected cash flows, indicating the long-lived assets were potentially impaired. To determine an impairment amount, we estimated the fair value of the long-lived assets for comparison to the carrying amount of those assets. Our estimate of the fair value considered the expected sales price as well as estimates generated from income and market approaches using a market participant’s assumptions. The estimated fair values resulting from the market and income approaches were consistent with the expected sales price. Therefore, we concluded that the estimated sales price, which was less than the carrying amount of the long-lived assets, represented the best estimate of fair value at March 31, 2019, and we recorded a long-lived asset impairment charge of $297.3 million in the first quarter of 2019 to reduce the carrying value of the assets to their estimated fair value. We recorded an additional impairment charge of $8.4 million in the second quarter of 2019, mainly due to additional capital expenditures incurred in the second quarter. With respect to the goodwill in the Statia Bunkering reporting unit, which consisted of our bunkering operations at the St. Eustatius terminal facility, we estimated the fair value based on the expected sales price discussed above, which is inclusive of the bunkering operations. As a result, we concluded the goodwill was impaired. Consistent with FASB’s amended goodwill impairment guidance discussed in Note 3, which we adopted in the first quarter of 2019, we measured the goodwill impairment as the difference between the reporting unit’s carrying value and its fair value. Therefore, we recognized a goodwill impairment charge of $31.1 million in the first quarter of 2019 to reduce the goodwill to $0 for the Statia Bunkering reporting unit. The impairment charges are included in “(Loss) income from discontinued operations, net of tax” on the consolidated statement of loss. During the second quarter of 2019, we determined the assets and liabilities associated with the St. Eustatius Operations met the criteria to be classified as held for sale. We determined the St. Eustatius Operations and the European Operations met the requirements to be reported as discontinued operations since the St. Eustatius Disposition and the European Disposition together represented a strategic shift that will have a major impact on our operations and financial results. These sales were part of our plan to improve our debt metrics and partially fund capital projects to grow our core business in North America. Accordingly, the consolidated balance sheet reflects the assets and liabilities associated with the St. Eustatius Operations as held for sale as of December 31, 2018, and the consolidated statements of (loss) income reflect the St. Eustatius Operations and the European Operations as discontinued operations for all applicable periods presented. On July 29, 2019, we sold the St. Eustatius Operations for net proceeds of approximately $230.0 million. The St. Eustatius Disposition included a 14.3 million barrel storage and terminalling facility and related assets on the island of St. Eustatius in the Caribbean Netherlands. We previously reported the terminal operations in our storage segment and the bunkering operations in our fuels marketing segment. We recognized a non-cash loss on the sale of $3.9 million in “(Loss) income from discontinued operations, net of tax” on the consolidated statement of loss in 2019. Discontinued Operations The following is a reconciliation of the major classes of line items included in “(Loss) income from discontinued operations, net of tax” on the consolidated statements of (loss) income:
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
| (Thousands of Dollars)
Revenues | $ | 248,981 |  |  | $ | 441,495 |  |  | $ | 369,247 |
Costs and expenses: |  |  |  |  |
Cost of revenues | 220,595 |  |  | 407,256 |  |  | 318,532 |
Impairment losses | 336,838 |  |  | — |  |  | — |
General and administrative expenses (excluding depreciation and amortization expense) | 1,231 |  |  | 6,133 |  |  | 4,684 |
Other depreciation and amortization expense | — |  |  | 271 |  |  | 263 |
Total costs and expenses | 558,664 |  |  | 413,660 |  |  | 323,479 |
Operating (loss) income | (309,683 | ) |  | 27,835 |  |  | 45,768 |
Interest income (expense), net | 32 |  |  | (1,839 | ) |  | (1,309 | )
Other (expense) income, net | (2,775 | ) |  | 34,674 |  |  | (5,226 | )
(Loss) income from discontinued operations before income tax expense | (312,426 | ) |  | 60,670 |  |  | 39,233 |
Income tax expense | 101 |  |  | 1,251 |  |  | 2,164 |
(Loss) income from discontinued operations, net of tax | $ | (312,527 | ) |  | $ | 59,419 |  |  | $ | 37,069 |
The consolidated statements of cash flows have not been adjusted to separately disclose cash flows related to discontinued operations. The following table presents selected cash flow information associated with our discontinued operations:
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
| (Thousands of Dollars)
Capital expenditures | $ | (27,954 | ) |  | $ | (114,811 | ) |  | $ | (153,785 | )
Significant noncash operating activities and other adjustments: |  |  |  |  |
Depreciation and amortization expense | $ | 8,536 |  |  | $ | 41,982 |  |  | $ | 36,040 |
Asset impairment losses | $ | 305,715 |  |  | $ | — |  |  | $ | — |
Goodwill impairment loss | $ | 31,123 |  |  | $ | — |  |  | $ | — |
Loss from sale of the St. Eustatius Operations | $ | 3,942 |  |  | $ | — |  |  | $ | — |
Loss from sale of the European Operations | $ | — |  |  | $ | 43,366 |  |  | $ | — |
Gain from insurance recoveries | $ | — |  |  | $ | (78,756 | ) |  | $ | — |
Assets and Liabilities Held for Sale The following is a reconciliation of the carrying amounts of the major classes of assets and liabilities included in “Assets held for sale” and “Liabilities held for sale” on the consolidated balance sheet:
| December 31, 2018
| (Thousands of Dollars)
Total current assets | $ | 54,404 |
Property, plant and equipment, net | 513,820 |
Goodwill | 31,123 |
Assets held for sale | $ | 599,347 |
Current liabilities | $ | 69,834 |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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- Definition Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. + References No definition available. + Details
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