ASSETS HELD FOR SALE

9 Months Ended

Sep. 30, 2012

ASSETS HELD FOR SALE

ASSETS HELD FOR SALE

3.  ASSETS HELD FOR SALE

In June 2012, we committed to a plan to sell our subsidiary in the United Kingdom (Exterran (UK) Ltd.) as part of our continued emphasis on simplification and focus on our core business. At that time, we expected the sale to be completed within the next twelve months. Our assets and liabilities associated with this subsidiary were reflected as assets or liabilities held for sale in our condensed consolidated balance sheet as of June 30, 2012. In conjunction with the planned disposition, we recorded an impairment of long-lived assets that totaled $1.5 million during the second quarter of 2012. The impairment charges are reflected in Long-lived asset impairment in our condensed consolidated statements of operations.

After conducting a marketing and sale process of the business, we no longer believe it is probable we will sell the assets and liabilities of our UK subsidiary within one year which is a required criterion for classifying them as held for sale.  We remain committed to disposing this business, and although a sale of the subsidiary is still a viable alternative, our level of certainty on timing and structure of this disposal has changed from our evaluation at June 30, 2012. As a result, the assets and liabilities of our UK subsidiary are reflected as assets held and used in our condensed consolidated balance sheet as of September 30, 2012.