(17) Held for Sale Assets

Consistent with our strategy to focus on high returning assets, during the second quarter of 2018 we initiated an organization-wide project to assess the economic and operational status of our fleet and other assets as well as an in depth analysis of our fleet management process to identify inefficiencies. The task encompassed an intensive review of underperforming assets throughout North America and the United Kingdom using our recently implemented enterprise resource planning system and sophisticated work order system that allows specific identification of the status of each unit and facilitates deeper analysis of repair and maintenance costs. The result of this review was the identification of specific assets over which a further determination as to the economics of continued retention and repair could be made.

In July 2018 management presented a proposed plan of sale for certain identified assets to the Board of Directors, and on July 24, 2018 the Board of Directors made the strategic decision to approve the plan and authorized management to begin actively marketing the assets for sale. As a result, we placed these assets as held for sale and recognized a $98.3 million loss on divestiture, which consisted of a non-cash loss of $106.2 million, net of estimated proceeds. The majority of the assets will be sold as scrap metal. Proceeds were primarily estimated by obtaining quotes from regional scrapping companies based on the net tonnage of the fleet to be scrapped. The assets represent a subset of larger asset groups held by the Company and we expect to complete the sale of the assets by December 31, 2018. In addition to rental fleet, we also identified and placed for sale, property, plant and equipment and inventory that were not being used efficiently.

In conjunction with this project, we evaluated the assigned depreciable lives and salvage values of our fleet. We believe that the assigned lives and salvage values discussed in Note 7 continue to be appropriate for our fleet. As a result of the reduction to our fleet and property, plant and equipment we expect depreciation expense to decrease approximately $0.9 million per quarter.

Related to this activity, the Company expects to recognize exit costs as positions are eliminated and yards, or portions of yards are exited.

The estimated loss as adjusted is set forth below:

	Net Book Value			Units
	(In thousands)
North America Storage Solutions Fleet:
Steel storage containers	$	56,986			19,718
Steel ground level offices		29,969			3,459
Other		346			275
United Kingdom Storage Solutions Fleet		8,027			1,482
Tank & Pump Solutions Fleet		1,223			472
Other		9,644		n/a
Total		106,195			25,406
Estimated net proceeds		(8,008	)
Initial estimated net loss on impairment and divestiture		98,187
Net proceeds received (above) below impaired value		91
Estimated net loss on impairment and divestiture	$	98,278

The table below sets forth the activity related to the assets held for sale subsequent to the initial impairment:

	North America Storage Solutions Fleet			United Kingdom Storage Solutions Fleet			Tank & Pump Solutions Fleet			Other Assets			Total
	(In thousands)
Value of assets upon initial impairment	$	5,876		$	333		$	161		$	1,638		$	8,008
Impaired value of sold assets		(2,776	)		(34	)		(65	)		(504	)		(3,379	)
Effect of exchange rates		(1	)		(1	)		—			1			(1	)
Other		(57	)		8			—			57			8
Balance of held for sale assets	$	3,042		$	306		$	96		$	1,192		$	4,636

Held for sale assets are included in other assets in the accompanying condensed consolidated balance sheet.