DISPOSITION

9 Months Ended

Sep. 30, 2015

DISPOSITION

DISPOSITION

NOTE 3.DISPOSITION

On August 4, 2015, we entered into a definitive agreement to sell Allstate to a private investor group for approximately $58.0 million cash, subject to adjustments for working capital and capital expenditures. Allstate represents the majority of the industrial services business and is included in our Field and Industrial Services segment, which we acquired with the acquisition of EQ. As a result of this agreement and management’s strategic review, we evaluated the recoverability of the assets associated with our industrial services business. Based on this analysis, we recorded a non-cash goodwill impairment charge of $6.7 million, or $0.31 per diluted share, in the second quarter of 2015. On November 1, 2015, we completed the sale of Allstate. The sale of Allstate does not meet the requirements to be reported as a discontinued operation as defined in ASU 2014-08. For additional information on the sale of Allstate, see Note 17.

Income before income taxes from Allstate included in the Company’s consolidated statements of operations for the three months ended September 30, 2015 and 2014 was $1.7 million and $265,000, respectively. For the nine months ended September 30, 2015 and 2014, loss before income taxes from Allstate was $5.7 million and income before income taxes from Allstate was $301,000, respectively. Loss before income taxes for the nine months ended September 30, 2015, includes a non-cash goodwill impairment charge of $6.4 million.

The carrying amounts of major classes of assets and liabilities of Allstate classified as held for sale in our consolidated balance sheet are as follows:

	September 30,
$s in thousands	2015
Receivables, net	$	22,340
Prepaid expenses and other current assets	1,555
Property and equipment, net	19,484
Intangible assets, net	21,824
Goodwill	13,572
Total assets held for sale	$	78,775
Accounts payable	6,108
Accrued liabilities	1,616
Accrued salaries and benefits	568
Deferred income taxes	11,948
Total liabilities held for sale	$	20,240