Quarterly report pursuant to Section 13 or 15(d)

Clearwater Facility Idling

Clearwater Facility Idling
9 Months Ended
Sep. 30, 2020
Clearwater Facility Idling  
Clearwater Facility Idling

(4) Clearwater Facility Idling

On September 18, 2019, the Company commenced a strategic evaluation of the Clearwater Facility, at which time such facility was idled. The Company expects the facility to continue to be idled for the foreseeable future. Accordingly, the Company performed an impairment analysis of the facility and determined: (i) to reduce the carrying value of the facility to its estimated salvage value, which included the land associated with the Clearwater Facility; (ii) the fair value of the goodwill assigned to the wastewater treatment reporting unit was less than its carrying value, resulting in an impairment charge to goodwill; and (iii) the customer relationships intangible asset was impaired. The following table shows the impairment charges for the year ended December 31, 2019 related to the Clearwater Facility (in thousands):

Impairment of property and equipment




Impairment of goodwill


Impairment of customer relationships


Total impairment expense



The Company incurred $2.5 million and $13.7 million in facility idling costs for the care and maintenance of the Clearwater Facility during the three and nine months ended September 30, 2020, respectively.