5. Assets Held for Sale

During the fourth quarter of 2015, the Company committed to a plan to sell certain assets and liabilities associated with the Company’s international business in Canada. This event qualified for held for sale accounting and the Company determined that the fair value of the net assets being sold significantly exceeded the carrying value as of December 31, 2015. The transaction was finalized in the first quarter of 2016.

Effective January 7, 2016, the Canadian subsidiary of the Company entered into an asset purchase agreement (“Purchase Agreement”) pursuant to which it would sell substantially all of the assets of its Canadian radiopharmacies and Gludef manufacturing and distribution business to one of its existing Canadian radiopharmacy customers.

The purchase price for the asset sale was $9.0 million in cash and also included a working capital adjustment of $0.5 million. The Purchase Agreement contained customary representations, warranties and covenants by each of the parties. Subject to certain limitations, the buyer will be indemnified for damages resulting from breaches or inaccuracies of the Company’s representations, warranties and covenants in the Purchase Agreement.

As part of the transaction, the Company and the buyer also entered into a customary transition services agreement and a long-term supply contract under which the Company will supply the buyer with the Company’s products on commercial terms and under which the buyer has agreed to certain product purchase commitments.

The Company did not believe the sale of certain net assets in the international business constituted a strategic shift that would have a major effect on its operations or financial results. As a result, this transaction was not classified as discontinued operations in the Company’s financial statements and was classified as assets and liabilities held for sale as of December 31, 2015.

The following table summarizes the major classes of assets and liabilities sold as of January 12, 2016 (date of the sale) and December 31, 2015:


(in thousands)	January 12, 2016		December 31, 2015
Current Assets:
Accounts receivable, net	$	2,620	$	2,512
Inventory		730		806
Other current assets		15		26

Total current assets		3,365		3,344
Non-Current Assets:
Property, plant and equipment, net		760		791
Intangibles, net		462		480
Other long-term assets		28		29

Total assets held for sale	$	4,615	$	4,644

Current Liabilities:
Accounts payable	$	435	$	430
Accrued expense and other liabilities		858		1,285

Total liabilities held for sale	$	1,293	$	1,715

The sale resulted in a pre-tax book gain of $5.9 million, which was recorded within operating income in the condensed consolidated statement of operations for the six month period ended June 30, 2016.