Assets Held for Sale

6 Months Ended

Jun. 30, 2021

Property, Plant and Equipment [Abstract]

In June 2021, we entered into an agreement to form our third joint venture in the form of a limited liability partnership with GIC, Singapore's sovereign wealth fund ("GIC"), to develop and operate additional xScaleTM data centers in Europe and the Americas (the “EMEA 2 Joint Venture”). xScale data centers are engineered to meet the technical and operational requirements and price points of core hyperscale workload deployments and also offer access to our comprehensive suite of interconnection and edge services. Upon closing, GIC will contribute cash in exchange for an 80% partnership interest in the EMEA 2 Joint Venture. We agreed to sell certain data center sites and facilities located in Frankfurt, Helsinki, Madrid, Milan, Paris, Sao Paolo and Warsaw, with the intention to add additional sites post-closing, in exchange for a 20% partnership interest in the EMEA 2 Joint Venture and cash proceeds. The transaction is expected to close in phases over the course of two years, pending regulatory approval and other closing conditions. The assets and liabilities of the data center sites that are expected to be sold within a year, which are currently included within our EMEA and Americas regions, were classified as held for sale as of June 30, 2021.

In May 2021, we entered into an agreement to sell the Dublin 5 ("DB5") data center site, which is currently under construction, to the EMEA 1 Joint Venture (as defined in note 6 below). The assets and liabilities of the DB5 data center, which are currently included within our EMEA region, were classified as held for sale as of June 30, 2021. The transaction closed in July 2021 (see note 14 below).

All assets and liabilities classified as held for sale are reported at the lower of their carrying amounts or fair values less costs to sell. The following table summarizes the assets and liabilities that were classified as assets and liabilities held for sale in the condensed consolidated balance sheet as of June 30, 2021 (in thousands):


	June 30, 2021
Other current assets	$	12,399
Operating lease right-of-use assets	19,873
Property, plant and equipment	191,230
Other assets	3,571
Total assets held for sale	$	227,073

Current portion of operating lease liabilities	$	1,142
Operating lease liabilities, less current portion	619
Accrued property, plant and equipment	31,222
Total liabilities held for sale (1)	$	32,983

(1)Liabilities held for sale were included within other current liabilities on the condensed consolidated balance sheet.