ACQUISITION AND DISPOSITION TRANSACTIONS

9 Months Ended

Sep. 30, 2019

Acquisition And Disposition Transactions [Abstract]

ACQUISITION AND DISPOSITION TRANSACTIONS

NOTE 4—ACQUISITION AND DISPOSITION TRANSACTIONS

Siluria Technologies acquisition—On July 15, 2019, we entered into an asset purchase agreement to acquire the assets of Siluria Technologies (“Siluria”), including various intellectual property and research and development assets, for approximately $7 million. In connection with the acquisition we recorded approximately $6 million of intangible assets within our Technology segment.

APP disposition—On June 24, 2019, we entered into an agreement to sell APP, the distribution and manufacturing arm of our pipe fabrication business, previously included in our NCSA segment. We completed the sale of APP on June 27, 2019.

Loss on the APP sale is included in Loss on asset disposals in our Statement of Operations for nine months ended September 30, 2019, and is summarized as follows:

	(In millions)
Assets
Inventory	$	69
Property and equipment		25
Goodwill		90
Other assets		11
Assets sold	$	195
Liabilities
Account payable	$	8
Other liabilities		3
Liabilities sold	$	11
Net assets sold	$	184
Sale proceeds (net of transaction costs of $2)		83
Loss on net assets sold	$	101

Results of APP’s operations during the nine-month periods ended September 30, 2019 and 2018 were not material to McDermott, as a whole. We are continuing to pursue the sale of the remaining portion of the pipe fabrication business, subject to approval by our Board of Directors.