ASSETS HELD FOR SALE ASSETS HELD FOR SALE

3 Months Ended

Mar. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

ASSETS HELD FOR SALE

ASSETS HELD FOR SALE

Held for Sale Operations

The Company classifies assets and liabilities as held for sale ("disposal group") when management, having the authority to approve the action, commits to a plan to sell the disposal group, the sale is probable within one year, and the disposal group is available for immediate sale in its present condition. The Company also considers whether an active program to locate a buyer has been initiated, whether the disposal group is marketed actively for sale at a price that is reasonable in relation to its current fair value, and whether actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or the plan will be withdrawn.

The Company aggregates the assets and aggregates the liabilities of all held-for-sale disposal groups on the balance sheet for the period in which the disposal group is held for sale.

In the first quarter 2016, the Company classified land and building of one of its closed Motorparts aftermarket sites as held for sale. The net book value of the assets was $3 million and the Company accepted an offer of to sell the site. The Company has recorded an impairment loss in the amount of $3 million for the three months ended March 31, 2016 which has been included in "Restructuring charges and asset impairments, net" in the condensed consolidated statements of operations. The remaining asset balance has been recorded in "Prepaid expenses and other current assets" as of March 31, 2016.

In the first quarter 2016, the Company has engaged in the process to sell one of its closed facilities in the Motorparts segment. The net book value of the assets, which mainly consists of the land and building, is $2 million. The closed facility meets held for sale accounting treatment and the related assets have been recorded in "Prepaid expenses and other current assets" as of March 31, 2016.

In the first quarter 2016, the Company entered into a sales purchase agreement to sell the assets of one of its closed Powertrain manufacturing locations. The net book value of the assets, which mainly consists of the land and building is $1 million. The agreed upon sales price is in excess of net book value and the related assets have been recorded in "Prepaid expenses and other current assets" as of March 31, 2016.

In 2015, the Company entered into a share agreement to sell 100% of the shares of one of its subsidiaries in the Powertrain segment along with certain related assets of another subsidiary. The Company classified the assets and liabilities related to this transaction as held for sale. Prior to December 31, 2015, the Company contributed $12 million in cash to the subsidiary. The transaction closed on January 1, 2016 with no additional amounts recognized for the three months ended March 31, 2016.