15. DISCONTINUED OPERATIONS

On June 20, 2018, NWN Gas Storage, our wholly owned subsidiary, entered into a Purchase and Sale Agreement (the Agreement) that provides for the sale by NWN Gas Storage of all of the membership interests in Gill Ranch. Gill Ranch owns a 75% interest in the natural gas storage facility located near Fresno, California known as the Gill Ranch Gas Storage Facility. Pacific Gas and Electric Company (PG&E) owns the remaining 25% interest in the Gill Ranch Gas Storage Facility.

The Agreement provides for an initial cash purchase price of $25.0 million (subject to a working capital adjustment), plus potential additional payments to NWN Gas Storage of up to $26.5 million in the aggregate if Gill Ranch achieves certain economic performance levels for the first three full gas storage years (April 1 of one year through March 31 of the following year) occurring after the closing and the remaining portion of the gas storage year during which the closing occurs.

We expect the transaction to close within 12 months of signing and in 2019. The closing of the transaction is subject to approval by the California Public Utilities Commission (CPUC) and other customary closing conditions.

As a result of our strategic shift away from merchant gas storage and the significance of Gill Ranch's financial results in 2017, we have concluded that the pending sale of Gill Ranch qualifies as assets and liabilities held for sale and discontinued operations. As such, the assets and liabilities associated with Gill Ranch have been classified as discontinued operations assets and discontinued operations liabilities, respectively, and, the results of Gill Ranch are presented separately, net of tax, as discontinued operations from the results of continuing operations for all periods presented. The expenses included in the results of discontinued operations are the direct operating expenses incurred by Gill Ranch that may be reasonably segregated from the costs of our continuing operations.

The following table presents the carrying amounts of the major components of Gill Ranch that are classified as discontinued operations assets and liabilities on our consolidated balance sheets:



	June 30,				December 31,
In thousands	2018		2017		2017
Assets:
Accounts receivable	$	497	$	1,130	$	2,126
Inventories	646		402		396
Other current assets	413		391		535
Property, plant, and equipment	10,948		235,556		10,816
Less: Accumulated depreciation	6		30,526		—
Other non-current assets	245		51		1
Discontinued operations - current assets ⁽¹⁾	12,743		1,923		3,057
Discontinued operations - non-current assets ⁽¹⁾	—		205,081		10,817
Total discontinued operations assets	$	12,743	$	207,004	$	13,874

Liabilities:
Accounts payable	$	572	$	635	$	1,287
Other current liabilities	436		668		306
Other non-current liabilities	11,914		12,167		12,043
Discontinued operations - current liabilities ⁽¹⁾	12,922		1,303		1,593
Discontinued operations - non-current liabilities ⁽¹⁾	—		12,167		12,043
Total discontinued operations liabilities	$	12,922	$	13,470	$	13,636


⁽¹⁾	The total assets and liabilities of Gill Ranch are classified as current as of June 30, 2018 because it is probable that the sale will be completed within one year.

The following table presents the operating results of Gill Ranch, which was reported within our gas storage segment historically, and is presented net of tax on our consolidated statements of comprehensive income:



	Three Months Ended June 30,						Six Months Ended June 30,
In thousands, except per share data	2018			2017			2018			2017
Revenues	$	1,006		$	1,762		$	2,083		$	3,361
Expenses:
Operations and maintenance	1,554			2,251			2,590			3,921
Depreciation and amortization	108			1,131			218			2,263
Other expenses and interest	239			604			814			1,196
Total expenses	1,901			3,986			3,622			7,380
Loss from discontinued operations before income taxes	(895		)	(2,224		)	(1,539		)	(4,019		)
Income tax benefit	236			878			406			1,586
Loss from discontinued operations, net of tax	$	(659	)	$	(1,346	)	$	(1,133	)	$	(2,433	)

Loss from discontinued operations per share of common stock:
Basic	$	(0.02	)	$	(0.04	)	$	(0.04	)	$	(0.08	)
Diluted	$	(0.02	)	$	(0.04	)	$	(0.04	)	$	(0.08	)