Quarterly report pursuant to Section 13 or 15(d)

Impairment of Assets Held For Sale

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Impairment of Assets Held For Sale
9 Months Ended
Sep. 30, 2014
Impairment of Assets Held For Sale  
Impairment of Assets Held For Sale

13.Impairment of Assets Held For Sale

 

During the first quarter of 2013, the Company lowered the asking price for its assets held for sale.  The Company recorded assets held for sale on its balance sheet in conjunction with the closure of the Johnson City, Tennessee location in 2010.  The land and building had been held for sale since the closure.  In an effort to stimulate sales activity, the Company lowered the listed sale price in the first quarter of 2013 which caused the Company to reassess the fair value of the assets held for sale.  The Company valued the fair value of the assets held for sale based upon Level 2 market price inputs for similar assets.  The Company used comparable properties sold and held for sale in the Johnson City, Tennessee industrial real estate market to determine an appropriate fair value.  Consequently, the Company incurred a $647 loss recognized on the impairment of assets held for sale, which is included in “Loss recognized on assets held for sale” on the Consolidated Statements of Operations and Comprehensive Income in the nine months ended September 30, 2013.    On February 26, 2014, the Company entered into an agreement for the sale of the land and building at an amount approximating the carrying amount.   The Company closed on the sale of the Johnson City assets on April 30, 2014 with a sales price of $1,100 and closing costs of $82.    Consequently, the Company incurred a $67 loss recognized on the disposal of assets held for sale and is included in “Loss recognized on assets held for sale” on the Consolidated Statements of Operations and Comprehensive Income in the nine months ended September 30, 2014.