Discontinued Operations

3 Months Ended

Mar. 31, 2017

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note 2 – Discontinued Operations

The following table reconciles the carrying amounts of the major line items constituting the pretax loss from discontinued operations to the after-tax loss from discontinued operations that are presented on our Condensed Consolidated Statements of Operations.

	Three Months Ended March 31,
	2016
EWW/Pipeline Assets
Interest expense	$	(29)
Pretax loss from discontinued operations		(29)
Income tax benefit		11
Loss from discontinued operations of EWW/Pipeline Assets	$	(18)
Independence
Loss from discontinued operations of Independence		(5)
Discontinued operations, net of income tax	$	(23)

EWW and the Glacier & Shoshone Pipelines

On October 10, 2014, we executed a stock purchase agreement for the sale of all of the stock of our wholly-owned subsidiary, EWW, to Cheyenne Light, Fuel and Power Company (“Cheyenne”). EWW has historically been included in our natural gas operations segment. In conjunction with this sale, our former EWD subsidiary entered into an asset purchase agreement for the sale of the transmission pipeline system known as the Shoshone Pipeline and the gathering pipeline system known as the Glacier Pipeline and certain other assets directly used in the operation of the pipelines (together the “Pipeline Assets”) to Black Hills Exploration and Production, Inc. (“Black Hills”), an affiliate of Cheyenne. As a result of EWW and the Pipeline Assets’ classification as discontinued operations, their results have been included in our corporate and other segment for all periods presented. On July 1, 2015, the transaction was completed. In connection with our sale of EWW and the Pipeline Assets, during the fourth quarter of 2015 we committed to repay the portion of notes payable to Allstate/CUNA that was allocated to EWW and EWD on February 12, 2016. During the first quarter of 2016, we adjusted our estimate of the prepayment penalty of $29. These amounts were recognized within interest expense related to the EWW/Pipeline Assets in the table above, and within discontinued operations, net of tax in the accompanying Condensed Consolidated Statements of Operations. See Note 7 – Credit Facilities and Long-Term Debt for more information regarding our debt agreements.

Our subsidiary, EWR, continues to conduct some business with both EWW and Black Hills relating to the Pipeline Assets. EWW has continued to purchase natural gas from EWR under an established gas purchase agreement through the first quarter of 2017. Additionally, EWR continued to use EWW’s transmission system under a standing transportation agreement through the first quarter of 2017. Finally, EWR continued to use the Pipeline Assets’ transmission systems under a standing transportation agreement through October 2017. During the three months ended March 31, 2017 and 2016, we recorded revenue in our income from continuing operations of $1,752 and $1,229 from Black Hills for gas and transportation under these ongoing agreements. These transactions are a continuation of activities that were conducted prior to the sales of EWW and the Pipeline Assets and were eliminated through the consolidation process until their sale to third parties.