Discontinued Operations and Assets Held for Sale

12 Months Ended

Dec. 31, 2016

Discontinued Operations and Assets Held for Sale [Abstract]

Discontinued Operations and Assets Held for Sale

Note C – Discontinued Operations and Assets Held for Sale

On September 30, 2014, the Company sold its U.K. retail marketing operations and associated inventories with total proceeds of $211,965,000.  The Company decommissioned the Milford Haven refinery units and completed the sale of its remaining downstream assets in the U.K. in the second quarter of 2015 for cash proceeds of $5,500,000.  The Company has accounted for this U.K. downstream business as discontinued operations for all periods presented.

The following table presents the carrying value of the major categories of assets and liabilities of U.K. refining and marketing operations and Seal operations in Canada reflected as held for sale on the Company’s Consolidated Balance Sheets at December 31, 2016 and 2015.

(Thousands of dollars)	2016		2015
Current assets
Cash	$	4,126	7,927
Accounts receivable		22,944	29,358
Other		–	1,055
Total current assets held for sale	$	27,070	38,340
Current liabilities
Accounts payable	$	270	2,433
Accrued compensation and severance		–	2,179
Refinery decommissioning cost		2,506	2,685
Total current liabilities associated with assets held for sale	$	2,776	7,297
Non-current liabilities
Asset retirement obligation – Seal asset	$	85,900	–
Total non-current liabilities associated with assets held for sale	$	85,900	–

The asset retirement obligation at December 31, 2016 relates to well and facility abandonment obligations at the Seal field in Canada which was sold in January 2017.  The purchaser has assumed these abandonment obligations.  See Note U for additional information.

In 2014, the Company wrote down its net investment in the held for sale U.K. refining and marketing assets by $269,200,000.  The 2014 writedown was based on estimated salvage value of remaining refining and terminal assets as of the end of the year.  The Company benefited in 2014 from a LIFO inventory liquidation credit of $209,600,000 and a gain on sale of the U.K. retail marketing assets of $101,700,000.  These chargesand benefits have been included in the results of discontinued operations.

The results of operations associated with all discontinued operations are presented in the following table.

(Thousands of dollars)	2016		2015	2014
Revenues	$	–	381,747	2,786,394
Loss from operations before income taxes	$	(2,027)	(6,758)	(261,873)
Gain (loss) on sale before income taxes		–	(4,990)	101,684
Total loss from discontinued operations before taxes		(2,027)	(11,748)	(160,189)
Income tax expense (benefit)		–	3,313	(40,827)
Loss from discontinued operations	$	(2,027)	(15,061)	(119,362)