Assets Held for Sale

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment [Abstract]

In April 2020, the Company entered into its second joint venture in the form of a limited liability partnership with GIC, Singapore's sovereign wealth fund ("GIC"), to develop and operate xScale data centers in Asia-Pacific (the “Asia-Pacific Joint Venture”). xScale data centers are engineered to meet the technical and operational requirements and price points of core hyperscale workload deployments and also offer access to Equinix's comprehensive suite of interconnection and edge services. Upon closing, GIC will contribute cash in exchange for an 80% partnership interest in the Asia-Pacific Joint Venture. The Company has agreed to sell three development sites in Japan, Osaka 2, Tokyo 12, and Tokyo 14, to the Asia-Pacific Joint Venture in exchange for a 20% partnership interest in the Asia-Pacific Joint Venture and cash proceeds. The assets and liabilities of these data center facilities, which are currently included within the Company's Asia-Pacific operating segment, were classified as held for sale as of September 30, 2020. During the nine months ended September 30, 2020, the Company recorded an impairment charge of $7.3 million, reducing the carrying value of the Asia-Pacific Joint Venture assets to the estimated fair value less cost to sell. The estimated fair value was based on the expected sales price from a specific transaction between the Company and the Asia-Pacific Joint Venture, and falls into Level 3 of the fair value hierarchy due to its reliance on unobservable inputs. The transaction is expected to close in the fourth quarter of 2020, pending regulatory approval and other closing conditions.

In September 2020, the Company entered into an agreement to sell its Paris 9 ("PA9") data center to its EMEA Joint Venture (as defined in note 6 below). The assets and liabilities of the PA9 data center, which are currently included with the Company's EMEA operating segment, were classified as held for sale as of September 30, 2020. The transaction is expected to close in the fourth quarter of 2020, pending regulatory approval and other closing conditions.

The following table summarizes the assets and liabilities that were classified as assets and liabilities held for sale in the condensed consolidated balance sheet as of September 30, 2020 (in thousands):


	September 30, 2020
Other current assets	$	11,281
Property, plant and equipment	276,330
Goodwill	7,313
Total assets held for sale	$	294,924

Accounts payable and accrued liabilities (1)	$	7,200
Total liabilities held for sale (1)	$	7,200

(1)$7.2 million of accrued costs to sell the Asia-Pacific Joint Venture were recorded as transaction costs during the nine months ended September 30, 2020 and classified as liabilities held for sale as of September 30, 2020, reducing the carrying value of the disposal group to the estimated fair value less costs to sell. Liabilities held for sale were included within other current liabilities on the condensed consolidated balance sheet.