Annual report pursuant to Section 13 and 15(d)

IMPAIRMENTS AND (GAIN) LOSS ON ASSETS HELD FOR SALE

v3.22.1
IMPAIRMENTS AND (GAIN) LOSS ON ASSETS HELD FOR SALE
 12 Months Ended
Dec. 31, 2021
Assets Held For Sale Not Part Of Disposal Group [Abstract]  
IMPAIRMENTS AND (GAIN) LOSS ON ASSETS HELD FOR SALE

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

Impairments and (gain) loss on assets held for sale – Impairments and (gain) loss on assets held for sale (“AHFS”) generally represents asset impairments, gains or losses on the sale of assets held for sale and certain nonrecurring items. During 2020, we recorded impairments and nonrecurring costs of $2.5 million within our Fabrication & Services Division associated with the following:

 

•

Impairments and loss on sale of AHFS – Impairments of $1.4 million associated with the partial impairment of assets that were held for sale, which consisted of three 660-ton crawler cranes, and a loss of $0.2 million associated with the sale of assets held for sale as described further below. Our estimates of fair value for the asset impairments were based on broker opinions of value, which were lower than our previous estimates due to changes in market conditions (including the impacts of COVID-19), the limited interest received in the cranes during the period, the specific use nature and size of the cranes, and our expectation of a shorter marketing period due to concerns regarding future deterioration of the cranes.

 

•

Impairments of other assets – Impairments of $0.9 million associated with the relocation and consolidation of certain assets between our Shipyard Facility and F&S Facility, and abandonment of certain assets within our F&S Facility, to improve operational efficiency. We determined our impairments based on scrap value estimates of fair value.

Assets held for sale – At December 31, 2021, our assets held for sale consisted of one 660-ton crawler crane within our Fabrication & Services Division. A summary of our assets held for sale at December 31, 2021 and 2020, is as follows (in thousands):

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

Machinery and equipment

 

$

4,587

 

 

$

11,877

 

Accumulated depreciation

 

 

(2,787

)

 

 

(5,677

)

Total assets held for sale

 

$

1,800

 

 

$

6,200

 

 

During 2021, we received proceeds of $4.5 million ($4.4 million, net of transaction and other costs) from the sale of two crawler cranes that were held for sale by our Fabrication & Services Division at December 31, 2020. No gain or loss was recognized on the assets sold as the net proceeds received approximated the carrying values of the assets. During 2020, we received proceeds of $1.7 million from the sale of other assets held for sale by our Fabrication & Services Division, resulting in a loss of $0.2 million.