PLANNED DIVESTITURE OF AVEDA	6 Months Ended
Jun. 30, 2020
PLANNED DIVESTITURE OF AVEDA
PLANNED DIVESTITURE OF AVEDA	NOTE 3 – PLANNED DIVESTITURE OF AVEDA As part of the overall operational and cost improvement plan of the Company, management and the board of directors had been evaluating how the Aveda business fits into the overall business strategy. In March 2020, the Company’s board of directors approved a plan for the sale of certain Aveda terminals located in Texas and Oklahoma. The planned divestiture does not meet the quantitative and qualitative criteria to be classified as discontinued operations. As a result, the Aveda operations will continue to be reported in the Specialized Solutions segment results until the sale is finalized. Effective with the designation as held for sale on March 31, 2020, the Company discontinued recording depreciation on property and equipment of this business and performed an impairment analysis of long-lived assets, as required by ASC 350 and 360. As a result of the analysis, impairment charges of $13.4 million were recorded for the three months ended March 31, 2020 consisting of property and equipment of $4.0 million, right-of-use assets of $3.2 million and tradename intangible assets of $6.2 million. During the second quarter of 2020, the Company sold the majority of the assets that were previously classified as held for sale for $24.6 million and recognized a loss on the sale of $1.2 million, which is included in gain (loss) on disposition of property and equipment. The Company had $4.9 million of property and equipment classified as held for sale at June 30, 2020. The remaining assets and liabilities that were previously classified as held for sale at March 31, 2020 were reclassified to held and used assets and liabilities, as they will be realized or abandoned upon the closure of the remaining open terminals of Aveda in 2020.

PLANNED DIVESTITURE OF AVEDA

6 Months Ended

Jun. 30, 2020

NOTE 3 – PLANNED DIVESTITURE OF AVEDA

As part of the overall operational and cost improvement plan of the Company, management and the board of directors had been evaluating how the Aveda business fits into the overall business strategy. In March 2020, the Company’s board of directors approved a plan for the sale of certain Aveda terminals located in Texas and Oklahoma.

The planned divestiture does not meet the quantitative and qualitative criteria to be classified as discontinued operations. As a result, the Aveda operations will continue to be reported in the Specialized Solutions segment results until the sale is finalized.

Effective with the designation as held for sale on March 31, 2020, the Company discontinued recording depreciation on property and equipment of this business and performed an impairment analysis of long-lived assets, as required by ASC 350 and 360. As a result of the analysis, impairment charges of $13.4 million were recorded for the three months ended March 31, 2020 consisting of property and equipment of $4.0 million, right-of-use assets of $3.2 million and tradename intangible assets of $6.2 million.

During the second quarter of 2020, the Company sold the majority of the assets that were previously classified as held for sale for $24.6 million and recognized a loss on the sale of $1.2 million, which is included in gain (loss) on disposition of property and equipment. The Company had $4.9 million of property and equipment classified as held for sale at June 30, 2020. The remaining assets and liabilities that were previously classified as held for sale at March 31, 2020 were reclassified to held and used assets and liabilities, as they will be realized or abandoned upon the closure of the remaining open terminals of Aveda in 2020.