On May 1, 2020, Frontier completed the sale of its Northwest Operations. See note 18 for further details.

This transaction does not represent a strategic shift for Frontier; therefore, it does not meet the criteria to be classified as a discontinued operation. Effective with the designation as held-for-sale on May 28, 2019, we discontinued recording depreciation on Property, Plant and Equipment and finite-lived intangible assets of this business as required by GAAP. The Company also separately classified the related assets and liabilities of the business as “held-for-sale” as of this date and in its March 31, 2020 consolidated balance sheet.

As a result of its ongoing evaluation of the recoverability of the carrying value of the assets and liabilities held for sale as of March 31, 2020 relative to the agreed upon sales price, adjusted for costs to sell, Frontier recorded an estimated loss on disposal of $24 million during the three months ended March 31, 2020 in its consolidated statement of operations and a corresponding adjustment to the valuation allowance included in assets held for sale on its consolidated balance sheet.

The principal components of the held-for-sale assets and liabilities as of March 31, 2020 are as follows:




($ in millions)	March 31, 2020
ASSETS

Accounts receivable, less allowances of $12	$	49
Prepaid expenses		1
Contract acquisition costs		8
Other current assets		2
Property, plant and equipment, net		1,075
Goodwill ⁽¹⁾		658
Other intangibles, net		30
Other assets		17
Valuation allowance on assets held for sale		(434)
Total assets held for sale	$	1,406

LIABILITIES

Accounts payable	$	13
Advanced billings		18
Accrued other taxes		9
Other current liabilities		14
Pension and other postretirement benefits ⁽²⁾		29
Other liabilities		32
Total liabilities held for sale	$	115

⁽¹⁾The assignment of goodwill was based on the relative fair value of the disposal group and the portion of the remaining reporting unit upon designation as “held for sale” as of May 28, 2019.