Assets Held for Sale

6 Months Ended

Jun. 30, 2023

Assets Held for Sale

Assets Held for Sale

5. Assets Held for Sale

The Company continually evaluates its portfolio for non-strategic assets and classifies assets and liabilities to be sold (“Disposal Group”) as held for sale in the period in which all specified GAAP criteria are met. Upon determining that a Disposal Group meets the criteria to be classified as held for sale, but does not meet the criteria for discontinued operations, the Company reports the assets and liabilities of the Disposal Group, if material, as separate line items on the condensed consolidated balance sheets and ceases to record depreciation and amortization relating to the Disposal Group.

The Company initially measures a Disposal Group that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a Disposal Group until the date of sale. The estimated fair value for Disposal Groups comprised of properties are typically based on appraisals and/or offers from prospective buyers.

As of June 30, 2023, two properties from the RV and Outdoor Retail segment, relating to a closed RV dealership and real estate, met the criteria to be classified as held for sale. Additionally, as of June 30, 2023, one of these properties had associated secured borrowings under the Company’s Real Estate Facilities (see Note 7 — Long-Term Debt for definition and further details), which will require payment of the associated balance upon sale of the property.

The following table presents the components of assets held for sale and liabilities related to assets held for sale at June 30, 2023, December 31, 2022, and June 30, 2022 (in thousands):

	June 30,		December 31,		June 30,
	2023		2022		2022
Assets held for sale:
Property and equipment, net	$	4,635	$	—	$	—
	$	4,635	$	—	$	—
Liabilities related to assets held for sale:
Current portion of long-term debt	$	206	$	—	$	—
Long-term debt, net of current portion		3,919		—		—
	$	4,125	$	—	$	—