Disposals of Long-Lived Assets

12 Months Ended

Dec. 31, 2018

Disposals And Impairments Of Long-Lived Assets [Abstract]

Disposals of Long-Lived Assets

DISPOSALS OR IMPAIRMENTS OF LONG-LIVED ASSETS

Year ended December 31, 2018

On January 5, 2018, we entered into a definitive agreement to sell our Mexican asphalt business. The sale closed on March 15, 2018, for $70.7 million. We recorded a pre-tax gain on disposal of $1.6 million for the year ended December 31, 2018. The Mexican asphalt business contributed $2.3 million of pre-tax income for the year ended December 31, 2018, excluding the gain on disposal. At December 31, 2017, the assets and liabilities of the Mexican asphalt business were written down to net realizable value by recording an impairment of $13.5 million, including the impact of a deferred foreign currency translation loss of $30.9 million, and classified as held for sale. The Mexican asphalt business contributed a pre-tax loss of $8.2 million for the year ended December 31, 2017, including the write-down to net realizable value. At December 31, 2017, the Mexican assets and liabilities held for sale included $29.4 million of property, plant and equipment, $34.9 million of current assets and $19.4 million of current liabilities, prior to the write-down to net realizable value.

On February 23, 2018, we entered into an agreement to sell our U.K. operations, SemLogistics. The sale closed on April 12, 2018, for $73.1 million. We recorded a pre-tax gain on disposal of $0.4 million for the year ended December 31, 2018. The U.K. business contributed pre-tax income of $5.4 million for the year ended December 31, 2018, excluding the gain on disposal. At December 31, 2017, the assets and liabilities of the U.K. operations were written down to net realizable value by recording an impairment of $76.7 million, including the impact of a deferred foreign currency translation loss of $22.8 million, and classified as held for sale. The U.K. business contributed a pre-tax loss of $73.0 million for the year-ended December 31, 2017, including the write-down to net realizable value. At December 31, 2017, the U.K. assets and liabilities held for sale included $136.8 million of property, plant and equipment, $3.1 million of current assets and $4.4 million of current liabilities, prior to the write-down to net realizable value.

Year ended December 31, 2017

The following amounts are included in "loss on disposal or impairment, net" on our consolidated statement of operations and comprehensive income (loss) for the year ended December 31, 2017 (in thousands):

	Segment	Loss/(Gain)
Write-down of Mexican asphalt business to net realizable value	Corporate and Other	$	13,511
Write-down U.K. operations to net realizable value	Corporate and Other	76,661
Sherman natural gas gathering and processing asset impairment	U.S. Gas	30,985
Crude oil trucking goodwill impairment (Note 9)	U.S. Liquids	26,628
Crude oil trucking intangible asset impairment (Note 9)	U.S. Liquids	12,087
Gain on sale of Glass Mountain Pipeline LLC (Note 6)	U.S. Liquids	(150,266		)
Other		3,727
Loss on disposal or impairment, net		$	13,333

At December 31, 2017, we recorded a $31.0 million impairment of our Sherman, Texas natural gas gathering and processing assets of our U.S. Gas segment. Evaluation of capital raising alternatives indicated that the carrying value of our Sherman, Texas assets might be in excess of fair value. We compared the forecasted undiscounted cash flows for the assets to the carrying value of the assets, which indicated that the carrying value of assets was impaired. We used an income approach, based on a discounted cash flow model, to estimate the fair value of the assets and recorded a non-cash impairment.

Impairments are based on unobservable inputs and considered to be Level 3 measurements. See Note 6 for discussion of the sale of our equity method investment in Glass Mountain Pipeline LLC ("Glass Mountain"). See Note 9 for discussion of impairment of goodwill and finite-lived intangible assets recorded by our U.S. Liquids segment.

Year ended December 31, 2016

There were no significant disposals or impairments of long-lived assets during the year ended December 31, 2016. See Note 6 for discussion of our sale of NGL Energy limited partner units accounted for under the equity method. See Note 9 for discussion of goodwill impairment related to our U.S. Gas segment.