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Assets Held for Sale and Impairment
3 Months Ended
Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Assets Held for Sale and Impairment
Assets Held for Sale and Impairment

Impairment

Impairment charges of $15.6 million and $0.1 million were recorded during the three months ended March 31, 2020 and March 31, 2019, respectively.

Assets Held for Sale

During the three months ended March 31, 2020, certain property classified as “Assets held for sale” on the condensed consolidated balance sheet located in the Rocky Mountain division was re-evaluated for impairment based on an accepted offer from a buyer that indicated fair value of the real property was lower than its net book value, and impairment charges of $0.6 million were recorded during the three months ended March 31, 2020, which is included in “Impairment of long-lived assets” on our condensed consolidated statements of operations. There is a signed purchase agreement for the property and the sale is expected to close within the next three months.

During the three months ended March 31, 2019, management approved plans to sell real property located in the Northeast division. As a result, we began to actively market the property, which we expect to sell within one year. In accordance with applicable accounting guidance, the real property was recorded at the lower of net book value or fair value less costs to sell and reclassified to “Assets held for sale” on the condensed consolidated balance sheet during the three months ended March 31, 2019. As the fair value of the real property reclassified as held for sale in the Northeast division was lower than its net book value, we recorded impairment charges of $0.1 million during the three months ended March 31, 2019, which is included in “Impairment of long-lived assets” on our condensed consolidated statements of operations.

Impairments of Long-Lived Assets

Long-lived assets, such as property, plant and equipment and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Due to the impacts of the outbreak of COVID-19 and the oil supply conflict between two major oil producing countries, there has been a significant decline in oil prices during the first quarter of 2020, which has resulted in a decrease in activities by our customers. As a result of these events, we determined during the quarter ended March 31, 2020 that there were indicators that the carrying value of our assets may not be recoverable.

Our impairment review during the three months ended March 31, 2020 concluded that the carrying values of the assets associated with the landfill in the Rocky Mountain division and trucking equipment in the Southern division were not recoverable as the carrying value exceeded our estimate of future undiscounted cash flows for these asset groups. As a result, we recorded an impairment charge of $15.0 million during the three months ended March 31, 2020 as the carrying value exceeded fair value, which is included in “Impairment of long-lived assets” on our condensed consolidated statements of operations. The fair value of the assets associated with the landfill and trucking equipment asset groups was determined using discounted estimated future cash flows (Level 3 in the fair value hierarchy).