ASSETS AND LIABILITIES HELD FOR SALE

During the first quarter of 2019, the Company initiated plans to sell its interests in Corrpower and Aegion South Africa. The Company is currently in discussions with third parties for each of the entities and believes that it is probable that sales of each entity will occur in the second half of 2019.

On May 14, 2018, the Company’s board of directors approved a plan to divest the assets and liabilities of Insituform Australia (see Note 1). The Company is currently in discussions with a third party and management believes that it is probable that a sale will occur in the first half of 2019.

The relevant asset and liability balances at March 31, 2019 and December 31, 2018 are accounted for as held for sale and measured at the lower of carrying value or fair value less cost to sell. No impairment charges were recorded on these assets as the net carrying value approximated or was less than management’s current expectation of fair value less cost to sell. In the event the Company is unable to sell the assets and liabilities or sells them at a price or on terms that are less favorable, or at a higher cost than currently anticipated, the Company could incur impairment charges or a loss on disposal.

The following table provides the components of assets and liabilities held for sale (in thousands):



	March 31, 2019⁽¹⁾		December 31, 2018⁽²⁾
Assets held for sale:
Current assets
Cash and cash equivalents	$	—	$	—
Receivables, net	4,237		1,309
Retainage	234		15
Contract assets	2,920		1,777
Inventories	3,971		2,123
Prepaid expenses and other current assets	587		300
Total current assets	11,949		5,524
Property, plant & equipment, less accumulated depreciation	3,395		2,268
Operating lease assets	2,135		—
Total assets held for sale	$	17,479	$	7,792

Liabilities held for sale:
Current liabilities
Accounts payable	$	1,801	$	1,331
Accrued expenses	5,516		3,891
Contract liabilities	1,100		38
Current maturities of long-term debt	895		—
Total current liabilities	9,312		5,260
Operating lease liabilities	1,219		—
Other non-current liabilities	231		—
Total liabilities held for sale	$	10,762	$	5,260

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⁽¹⁾	Includes Corrpower, Aegion South Africa and Insituform Australia.


⁽²⁾	Includes Insituform Australia.