Discontinued operations

9 Months Ended

Sep. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

The assets and liabilities of the Company's discontinued operations have been classified as held for sale and the results of operations are shown in income (loss) from discontinued operations, other than certain general and administrative costs and interest expense which do not meet the criteria for income (loss) from discontinued operations. At the time the assets were classified as held for sale, depreciation, depletion and amortization expense was no longer recorded.

Dakota Prairie Refining On June 24, 2016, WBI Energy entered into a membership interest purchase agreement with Tesoro to sell all the outstanding membership interests in Dakota Prairie Refining to Tesoro. WBI Energy and Calumet each previously owned 50 percent of the Dakota Prairie Refining membership interests and were equal members in building and operating Dakota Prairie Refinery. To effectuate the sale, WBI Energy acquired Calumet’s 50 percent membership interest in Dakota Prairie Refining on June 27, 2016. The sale of the membership interests to Tesoro closed on June 27, 2016. The sale of Dakota Prairie Refining reduced the Company’s risk by decreasing exposure to commodity prices.

Fidelity In the second quarter of 2015, the Company began the marketing and sale process of Fidelity with an anticipated sale to occur within one year. Between September 2015 and March 2016, the Company entered into purchase and sale agreements to sell substantially all of Fidelity's oil and natural gas assets. The completion of these sales occurred between October 2015 and April 2016. In July 2018, the Company completed the sale of a majority of the remaining property, plant and equipment. The sale of Fidelity was part of the Company's strategic plan to grow its capital investments in the remaining business segments and to focus on creating a greater long-term value.

Dakota Prairie Refining and Fidelity The carrying amounts of the major classes of assets and liabilities classified as held for sale on the Consolidated Balance Sheets were as follows:



	September 30, 2019		September 30, 2018		December 31, 2018
	(In thousands)
Assets
Current assets:
Receivables, net	$	426	$	571	$	430
Income taxes receivable (a)	—		1,640		—
Total current assets held for sale	426		2,211		430
Noncurrent assets:
Deferred income taxes	1,926		1,711		1,926
Other	161		161		161
Total noncurrent assets held for sale	2,087		1,872		2,087
Total assets held for sale	$	2,513	$	4,083	$	2,517
Liabilities
Current liabilities:
Accounts payable	$	—	$	188	$	80
Taxes payable	1,300		7,463		1,451
Other accrued liabilities	2,093		1,948		2,470
Total current liabilities held for sale	3,393		9,599		4,001
Noncurrent liabilities:
Deferred income taxes (b)	—		37		—
Total noncurrent liabilities held for sale	—		37		—
Total liabilities held for sale	$	3,393	$	9,636	$	4,001


(a)	On the Company's Consolidated Balance Sheets, these amounts were reclassified to taxes payable and are reflected in current liabilities held for sale.


(b)	On the Company's Consolidated Balance Sheets, these amounts were reclassified to deferred charges and other assets - deferred income taxes and are reflected in noncurrent assets held for sale.

The reconciliation of the major classes of income and expense constituting pretax income (loss) from discontinued operations to the after-tax income (loss) from discontinued operations on the Consolidated Statements of Income was as follows:



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2019			2018			2019		2018
	(In thousands)
Operating revenues	$	230		$	61		$	298	$	201
Operating expenses	(1,760		)	216			264		825
Operating income (loss)	1,990			(155		)	34		(624		)
Other income	—			—			—		12
Interest expense	—			—			—		575
Income (loss) from discontinued operations before income taxes	1,990			(155		)	34		(1,187		)
Income taxes	481			(37		)	8		(1,272		)
Income (loss) from discontinued operations	$	1,509		$	(118	)	$	26	$	85