Assets Held for Sale

12 Months Ended

Dec. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Assets Held for Sale

Assets Held for Sale

In order to obtain the approval of the European Commission for the acquisition of TelecityGroup, the Company and TelecityGroup have agreed to divest certain data centers, including the Company’s London 2 data center in London, UK ("LD2"). There is no definitive agreement to date with any buyer or buyers and any such agreement will be subject to the approval of the European Commission. The assets and liabilities of this data center, which are included within the EMEA operating segment, were classified as held for sale in the fourth quarter of 2015 and, therefore, the corresponding depreciation and amortization expense was ceased at that time. This anticipated divestiture is not presented as discontinued operations in our consolidated statements of operations, because it does not represent a strategic shift in our business, as the Company will continue operating similar businesses after the acquisition. During the fourth quarter of 2015, the Company entered into an agreement to sell a parcel of land in San Jose, California, whose sale was completed in February 2016. The consolidated financial statements reflect the LD2 data center assets and liabilities and San Jose land parcel as held for sale in the accompanying consolidated balance sheet as of December 31, 2015. During the years ended December 31, 2015 and 2014, the Company recognized revenue of $17,579,000 and $21,772,000, respectively, and net income of $7,166,000 and $9,218,000, respectively from LD2.

When an asset is classified as held for sale, the asset’s book value is evaluated and adjusted to the lower of its carrying amount or fair value less cost to sell. As of December 31, 2015, the Company determined that assets held for sale had not been impaired.

The following table summarizes the assets and liabilities of the LD2 data center and San Jose land parcel classified as held for sale in the consolidated balance sheet as of December 31, 2015 (in thousands):

Accounts Receivable	$	2,222
Other current assets	408
Property, plant and equipment	23,533
Goodwill	5,000
Intangible assets	784
Other assets	1,310
Total assets held for sale	$	33,257
Accounts payable and accrued expenses	$	(654	)
Accrued property, plant and equipment	(816		)
Other current liabilities	(435		)
Other liabilities	(1,630		)
Total liabilities held for sale	$	(3,535	)