Asset Impairments and Assets Held for Sale

6 Months Ended

Jun. 30, 2023

Asset Impairments and Assets Held for Sale

In the third quarter of 2022, we made the decision to exit Rail Russia, which is reported within the Rail International segment. The net assets of Rail Russia were then classified as held for sale and adjusted to the lower of their respective carrying amounts or fair value less costs to dispose. As a result, we recorded impairment losses totaling $14.6 million in 2022, which are presented in net asset dispositions in the statements of comprehensive income (loss). The impairment charges included $1.2 million for the anticipated liquidation of the cumulative translation adjustment. In the first quarter of 2023, we completed the sale of Rail Russia and recorded a gain of $0.3 million, which is presented in net gain on asset dispositions in the statements of comprehensive income (loss).

In the second quarter of 2022, we made the decision to sell our five Specialized Gas Vessels within the Portfolio Management segment. The Specialized Gas Vessels were classified as held for sale and adjusted to the lower of their respective carrying amounts or fair value less costs to dispose. As a result, we recorded impairment losses totaling $34.3 million in 2022. The impairments were driven by our decision to sell these vessels and resulted from the associated change in our expected use and holding periods for these assets. We sold two vessels in the third quarter of 2022. In the first quarter of 2023, we sold one vessel, resulting in a loss on disposition of $0.4 million, and recorded an impairment loss of $1.2 million on one of the two remaining vessels. The impairment loss was included in net gain on asset dispositions in the statements of comprehensive income (loss). In the second quarter of 2023, we sold one vessel and recorded a gain of $0.2 million associated with this sale. The one remaining vessel continues to be classified as held for sale and its fair value was $8.9 million as of June 30, 2023. We based the fair value of the asset on our estimate of the expected net sales proceeds.

The following table summarizes the components of asset impairments by segment (in millions):


	Three Months Ended June 30				Six Months Ended June 30
	2023		2022		2023		2022
Attributable to Consolidated Assets


Portfolio Management	$	—	$	31.5	$	1.2	$	31.5

Total	$	—	$	31.5	$	1.2	$	31.5

The following table summarizes assets held for sale by business segment (in millions):


	June 30 2023		December 31 2022
Rail North America	$	0.8	$	1.2
Rail International	—		13.7
Portfolio Management	8.9		25.1
Total	$	9.7	$	40.0

All assets held for sale at June 30, 2023 are expected to be sold within one year and are included in Other Assets on the balance sheet.