Disposal of long-lived assets

3 Months Ended

Mar. 31, 2018

Disposal of long-lived assets [Line Items]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

DISPOSALS OR IMPAIRMENTS OF LONG-LIVED ASSETS

On March 15, 2018, we completed the sale of our Mexican asphalt business for $73.5 million, including working capital, subject to customary post-closing adjustments. We recorded a pre-tax gain on disposal of $4.4 million for the three months ended March 31, 2018. The Mexican asphalt business contributed $2.3 million of pre-tax income for the three months ended March 31, 2018, excluding the gain on disposal.

On February 23, 2018, we entered into an agreement to sell our U.K. operations, SemLogistics. In addition to the sale price, the agreement provides for potential earnout payments to be made to SemGroup if certain revenue targets are met in the four years following the close of the transaction. SemGroup intends to use proceeds from the sale toward its capital raise plan and to pre-fund capital growth projects. The sale was completed on April 12, 2018, for $76.8 million in cash, subject to customary post-closing adjustments.

At March 31, 2018, the assets and liabilities of our storage and terminalling business in the U.K. are reflected on the consolidated balance sheet as held for sale and have been written down to net realizable value of $75.1 million. For the three months ended March 31, 2018, we recorded a pre-tax loss of $0.2 million to adjust the carrying value of the U.K. operations to net realizable value. The U.K. business contributed a pre-tax income of $5.8 million for the three months ended March 31, 2018, excluding the loss recorded to adjust the assets held for sale to net realizable value. At March 31, 2018, the U.K. assets and liabilities held for sale included $142.6 million of property, plant and equipment, $2.5 million of current assets and $2.4 million of current liabilities. Asset and liability balances disclosed above do not reflect adjustments to carry the balances at net realizable value.