3. IMPAIRMENTS AND (GAIN) LOSS ON ASSETS HELD FOR SALE

Shipyard Transaction – During the first quarter of 2021, events and changes in circumstances indicated that the carrying amount of our Shipyard Division’s long-lived assets may not be recoverable. These changes in circumstances were primarily attributable to a reassessment of our asset groups within our Shipyard Division as well as revisions to our probability assessment of net future cash flows of the applicable asset group based on the likelihood, that existed as of March 31, 2021, of the Shipyard Transaction occurring. Based on these assessments, we determined that an impairment of our Shipyard Division’s property, plant and equipment had occurred.  We measured the impairment by comparing the carrying amount of the applicable asset group at March 31, 2021 to an estimate of its fair value (which represents a Level 3 fair value measurement), resulting in an impairment charge of $22.8 million for the three months ended March 31, 2021. We based our fair value estimate on the Transaction Price inclusive of the Closing Adjustment and estimated Closing Adjustment True-Up, associated with the Shipyard Transaction. In addition, we incurred transaction costs of $0.7 million during the three months ended March 31, 2021 associated with the Shipyard Transaction.  We anticipate recording an additional loss of

approximately $2.0 million during the second quarter 2021 related to additional transaction and other costs associated with the Shipyard Transaction. See Note 8 for further discussion of the Shipyard Transaction.

Assets Held for Sale – Our assets held for sale at March 31, 2021, primarily consisted of three 660-ton crawler cranes within our Fabrication & Services Division and two drydocks within our Shipyard Division.  A summary of our assets held for sale at March 31, 2021 and December 31, 2020, is as follows (in thousands):

During the three months ended March 31, 2020, we received proceeds of $1.1 million from the sale of assets held for sale.  No gain or loss was recognized on the assets sold as the proceeds received approximated the carrying values of the assets. Our Shipyard Division assets held for sale were included in the Shipyard Transaction. See Note 8 for further discussion of the Shipyard Transaction.