ASSET DISPOSALS AND IMPAIRMENTS

6 Months Ended

Jun. 30, 2013

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ASSET DISPOSALS AND IMPAIRMENTS

8. ASSET DISPOSALS AND IMPAIRMENTS

Asset disposal and impairments—During the quarter, we sold two heavy aircraft previously utilized in our Oil and Gas segment. The carrying value prior to the sale was $20.6 million. These aircraft were sold for $37.0 million, resulting in a gain of $16.4 million recorded in the second quarter of 2013. These aircraft no longer met our strategic needs. In addition we sold an airframe to a charitable organization, which resulted in a loss of $1.7 million.

We also recorded an impairment loss in the quarter for two medium aircraft in our Air Medical segment. The carrying value of these aircraft was $0.8 million. Following a market analysis, it was determined that the current market value for these aircraft was $0.4 million. As a result, we recorded an impairment loss of $0.4 million in the second quarter of 2013.