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| 1 | ALLEGHENY ENERGY, INC | NOTE 3: ASSETS HELD FOR SALE On May 4, 2009, Potomac Edison signed definitive agreements to sell its electric distribution operations in Virginia (“VA Distribution Business”) to Rappahannock Electric Cooperative and Shenandoah Valley Electric Cooperative (the “Buyers”). The agreements are subject to state regulatory approval in Virginia and West Virginia, as well as federal approval and certain third-party consents. Under the terms of the agreements, Potomac Edison will transfer its Virginia distribution assets and certain related liabilities to the Buyers in exchange for cash proceeds of approximately $340 million, subject to adjustment for changes in assets and liabilities through the closing date. As part of their agreement, Monongahela will purchase certain West Virginia distribution operations from Shenandoah Valley Electric Cooperative for approximately $15 million. The sale is expected to close following the completion of applicable regulatory proceedings. Hearings before the Virginia State Corporation Commission (the “Virginia SCC”) are scheduled to commence March 2, 2010. The VA Distribution Business is included in the Delivery and Services segment.
For periods after May 4, 2009, assets and liabilities relating to the VA Distribution Business are classified as “held for sale” in Allegheny’s consolidated balance sheets, and depreciation expense on such assets ceased. Assets held for sale and liabilities associated with assets held for sale at September 30, 2009 were as follows:
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| 2 | AUTOMATIC DATA PROCESSING INC | Note 9. Assets Held for Sale
During fiscal 2009, the Company reclassified assets related to three buildings as assets held for sale on the Consolidated Balance Sheets. Such assets were previously reported in property, plant and equipment, net on the Consolidated Balance Sheets. In fiscal 2009, the Company sold one of those buildings. In July 2009, the Company sold one building and realized a gain of $1.5 million in other income, net on the Statements of Consolidated Earnings. The Company currently expects to complete the sale of the remaining building during fiscal 2010.
At September 30, 2009, the Company had $6.7 million classified as assets held for sale on the Consolidated Balance Sheets related to one building. |
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| 3 | CHEVRON CORP |
At September 30, 2009, the company classified
$316 million of net properties, plant and equipment as
“Assets held for sale” on the Consolidated Balance
Sheet. These assets are associated with upstream, downstream and
mining businesses and are expected to be sold before the end of
2009.
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| 4 | EBAY INC |
Note 4 — Skype Assets Held for Sale On September 1, 2009, we entered into a definitive agreement to sell the share capital of Skype Luxembourg Holdings S.a.r.l., Skype Inc., Camino Networks, Inc. and Sonorit Holdings, A.S. (collectively with their respective subsidiaries, the “Skype Companies”) to an entity organized and owned by an investment group led by Silver Lake and including the Canada Pension Plan Investment Board, Index Ventures and Andreessen Horowitz (the “Buyer”). The transaction values Skype at $2.75 billion. Upon completion of the sale, we will hold an approximately 35 percent equity investment in the Buyer, which will be recorded at fair value within long-term investments in our condensed consolidated balance sheet. Mr. Mark Andreessen, a member of our Board of Directors, is a general partner in Andreessen Horowitz, which will own less than five percent of the Buyer. The transaction is expected to close in the fourth quarter of 2009. The amortization of intangible assets held for sale has been suspended. The major classes of assets and liabilities classified as held for sale are as follows (in thousands):
Included in the table above within non-current assets is goodwill of approximately $1.9 billion. As part of the sale of Skype, we will recognize a portion of our accumulated foreign currency translation adjustment. We estimate the gain on the pending sale of Skype will be approximately $1.0 billion. |
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| 5 | Starwood Hotel & Resorts Worldwide Inc | Note 5. Assets Held for Sale During the third quarter of 2009, the Company entered into purchase and sale agreements for the sale of certain non-core assets for total expected cash consideration of approximately $125 million. The Company received non-refundable deposits from the prospective buyers in these two separate transactions during the quarter. The Company classified these assets and the estimated goodwill to be allocated as assets held for sale and ceased depreciating them. During the first quarter of 2008, the Company entered into a purchase and sale agreement for the sale of a hotel for total consideration of $10 million. The Company received a non-refundable deposit from the prospective buyer during the first quarter of 2008. The Company recorded an impairment charge of approximately $1 million in the first quarter of 2008 related to this hotel. In December 2008, the Company and prospective buyer agreed to extend the closing period for up to 12 months and the prospective buyer paid the Company an incremental non-refundable deposit of approximately $2 million. During the second quarter of 2009, the agreement was terminated, and as a result, this hotel was reclassified as held for use. |
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| 6 | UNITED STATES STEEL CORP |
On January 31, 2009, U. S. Steel completed the previously announced sale of the majority of the operating assets of Elgin, Joliet and Eastern Railway Company (EJ&E) to Canadian National Railway Company (CN) for approximately $300 million. U. S. Steel retained railroad assets, equipment, and employees that support the Gary Works. As a result of the transaction, U. S. Steel recognized a net gain of approximately $97 million, net of a $10 million pension curtailment charge (see Note 7), in the first quarter 2009. As of December 31, 2008, the assets of EJ&E that were to be sold, consisting primarily of property, plant and equipment, were classified as held for sale in accordance with ASC Topic 360 on impairment and disposal of long-lived assets.
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