LOSS ON IMPAIRMENT

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

LOSS ON IMPAIRMENT

5. LOSS ON IMPAIRMENT

During the fourth quarter of 2015 we evaluated our ROVA asset group for impairment primarily as a result of an impairment indicator related to the continued decline in forecasted electricity prices. The asset group is comprised of property, plant, and equipment and related capital spares used to generate electricity, and resides in our Power segment. Our evaluation concluded that the long-lived assets at ROVA were impaired, and the carrying value of those assets was written down to zero as a result of an impairment charge of $133.1 million, with the charge included in the Loss on Impairment line item on the Consolidated Statement of Operations for the year ended December 31, 2015. Our fair value measurement for these assets was determined based on a probability-weighted estimate of discounted future cash flows, which are Level 3 fair value measurements. Key inputs to the fair value measurement for these assets included current forecasted electricity prices in the region ROVA serves, which we believe will continue to remain at depressed levels, as well as forecasted cost inputs based on the Company’s planning and budgeting process.

We also recorded an impairment charge of $3.1 million to the same line item on the Consolidated Statement of Operations during the year ended December 31, 2015 for certain immovable fixed assets at our Coal Valley mine, which is part of the Coal-Canada segment, primarily as a result of continued declines in pricing in the export markets which Coal Valley serves.

We considered the early termination of our coal supply agreements at our Jewett and Colstrip mines during 2016 to constitute triggering events necessitating impairment consideration. We determined these mines were unimpaired as future undiscounted cash flows supported the recoverability of the carrying value of their long-lived assets.