Annual report pursuant to Section 13 and 15(d)

Clearwater Facility Idling

v3.20.4
Clearwater Facility Idling
12 Months Ended
Dec. 31, 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 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. Additionally, during the year ended December 31, 2020, the Company determined that the carrying value of the landfill was no longer recoverable resulting in an impairment charge to property and equipment. The following table shows the impairment charges for the years ended December 31, 2019 and 2020 related to the Clearwater Facility, which also reflect the final purchase price allocation of the Transactions (in thousands):

    

Year Ended December 31,

2019

2020

Impairment of property and equipment

    

$

408,882

    

$

6,745

Impairment of goodwill

42,290

Impairment of customer relationships

11,871

Total impairment expense

$

463,043

$

6,745

The Company incurred $11 million and $15 million in facility idling costs for the care and maintenance of the Clearwater Facility during the years ended December 31, 2019 and 2020, respectively.