6. DISPOSITIONS AND DISCONTINUED OPERATIONS

Dispositions

During the second quarter of 2017, we sold unnecessary pipe related to the Sandpiper project for cash proceeds of approximately $97.6 million. A gain on disposal of $51.5 million before tax was included in “Gain on sale of assets” on our consolidated statements of income. These assets were part of our Liquids segment.

On March 1, 2017, we completed the sale of the Ozark Pipeline System to a subsidiary of MPLX LP for cash proceeds of approximately $219.6 million, including reimbursement costs. A gain on disposal of $10.6 million before tax was included in “Gain on sale of assets” on our consolidated statements of income. These assets were part of our Liquids segment.

Discontinued Operations

Sale of Natural Gas Business

On June 28, 2017, we completed the sale of all of our ownership interest in our Midcoast gas gathering and processing business to our General Partner for $2.26 billion, which included cash consideration of $1.31 billion and outstanding indebtedness at Midcoast Energy Partners, L.P. (MEP) of $953 million. This sale included our 48.4% limited partnership interest in Midcoast Operating, L.P., our 51.9% limited partnership interest in MEP, and our 100% interest in Midcoast Holdings, L.L.C., MEP’s general partner. We recorded no gain or loss on the sale as this transaction was between entities under common control of Enbridge. The carrying value of the net assets sold was $4.29 billion. As a result of the transaction, partners’ capital decreased by $2.13 billion, all of which was allocated to the General Partner’s capital account. Noncontrolling interest in MEP of $296.6 million was eliminated.

The following table presents the operating results from discontinued operations of our Midcoast gas gathering and processing business, which have been segregated from our continuing operations in our consolidated statements of income:

	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
Operating revenues:
Commodity sales	$	559.3		$	379.4		$	1,085.0		$	757.2
Commodity sales – affiliate		3.3			1.4			9.4			6.6
Transportation and other services		24.5			46.8			66.7			95.7
		587.1			427.6			1,161.1			859.5
Operating expenses:
Commodity costs		496.8			350.5			968.2			685.9
Commodity costs – affiliate		25.7			8.5			42.1			21.2
Operating and administrative		28.3			40.0			64.7			74.8
Operating and administrative – affiliate		35.0			38.9			68.7			76.8
Depreciation and amortization		37.1			40.0			74.5			79.5
Asset impairment		—			10.6			—			10.6
		622.9			488.5			1,218.2			948.8
Operating loss		(35.8	)		(60.9	)		(57.1	)		(89.3	)
Interest expense, net		(9.5	)		(8.1	)		(17.4	)		(16.5	)
Other income		10.4			6.5			18.6			13.9
Loss before income tax expense		(34.9	)		(62.5	)		(55.9	)		(91.9	)
Income tax expense		(0.5	)		(0.5	)		(0.9	)		(1.4	)
Net loss from discontinued operations	$	(35.4	)	$	(63.0	)	$	(56.8	)	$	(93.3	)

The following table presents the major classes of assets and liabilities for discontinued operations of our Midcoast gas gathering and processing business as presented in the consolidated statements of financial position:

	December 31, 2016
Current assets related to discontinued operations:
Cash and cash equivalents	$	7.4
Restricted cash		11.0
Receivables, trade and other, net of allowance for doubtful accounts		8.5
Due from General Partner and affiliates		2.1
Accrued receivables		20.8
Inventory		28.1
Other current assets		60.7
	$	138.6
Non-current assets related to discontinued operations:
Property, plant and equipment, net	$	4,114.5
Equity investments in joint ventures		360.7
Intangible assets, net		251.8
Other assets, net		48.3
	$	4,775.3

	December 31, 2016
Current liabilities related to discontinued operations:
Accounts payable and other	$	66.9
Due to General Partner and affiliates		38.8
Environmental liabilities		0.1
Accrued purchases		171.8
Property and other taxes payable		17.2
Interest payable		5.0
	$	299.8
Non-current liabilities related to discontinued operations:
Long-term debt	$	818.5
Other long-term liabilities		25.8
	$	844.3