Impairments

6 Months Ended

Jun. 30, 2020

Property, Plant and Equipment [Abstract]

We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. A provision is made for impairment if estimated future operating cash flows (undiscounted and without interest charges) plus estimated disposition proceeds (undiscounted) are less than the current book value of the property. Key factors that we utilize in this analysis include projected rental rates, estimated holding periods, capital expenditures and property sales capitalization rates. If a property is classified as held for sale, it is carried at the lower of carrying cost or estimated fair value, less estimated cost to sell, and depreciation of the property ceases.

During the second quarter of 2020, we assessed the key assumptions used in our impairment analysis for the impact of the COVID-19 pandemic on our portfolio, focusing on tenants experiencing difficulties meeting their lease obligations to us. As a result of this analysis, we determined that the carrying values of eight properties classified as held for investment were not recoverable. As a result, we recorded provisions for impairments of $8.2 million on these properties, which are included as part of our total impairments recorded during the second quarter of 2020.

The following table summarizes our provisions for impairment during the periods indicated below (dollars in millions):


	Three months ended June 30,						Six months ended June 30,
	2020		2019		2020		2019
Total provisions for impairment	$	13.9	$	13.1	$	18.3	$	17.7
Number of properties:
Classified as held for sale	7		—		8		—
Classified as held for investment	11		2		14		2
Sold	7		12		14		22