DISPOSITIONS

ASSETS HELD FOR SALE

Midcoast Operating, L.P.

On May 9, 2018, our indirect subsidiary, Enbridge (U.S.) Inc. entered into a definitive agreement to sell Midcoast Operating, L.P. and its subsidiaries (collectively, MOLP) to AL Midcoast Holdings, LLC (an affiliate of ArcLight Capital Partners, LLC) for a cash purchase price of approximately US$1.1 billion, subject to customary closing adjustments.

On August 1, 2018, Enbridge (U.S.) Inc. closed the sale of MOLP for total cash proceeds of approximately US$1.1 billion less deposits and other customary closing items. MOLP conducted our United States natural gas and natural gas liquids gathering, processing, transportation and marketing businesses, and was a part of our Gas Transmission and Midstream segment.

As at December 31, 2017, the MOLP assets, excluding our equity method investment in the Texas Express NGL pipeline system, were classified as held for sale and were measured at the lower of their carrying value or fair value less costs to sell.

In the first quarter of 2018, as a result of entering into a definitive sales agreement, the fair value of the assets held for sale as at March 31, 2018 were revised based on the sale price. Accordingly, we recorded a loss of $913 million ($701 million after-tax). This loss has been included within Asset impairment on the Consolidated Statements of Earnings for the six months ended June 30, 2018.

In the second quarter of 2018, our equity method investment in the Texas Express NGL pipeline system, together with the MOLP assets, also met the conditions for assets held for sale. The $447 million carrying value of Texas Express NGL pipeline system equity investment and an allocated goodwill of $262 million, were included within the disposal group as at June 30, 2018 and subsequently disposed on August 1, 2018.

Line 10 Crude Oil Pipeline

In the first quarter of 2018, we satisfied the condition as set out in our agreements for the sale of our Line 10 crude oil pipeline (Line 10), which originates near Hamilton, Ontario and terminates at West Seneca, New York. Our subsidiaries, Enbridge Pipelines Inc. and Enbridge Energy Partners, L.P., own the Canadian and United States portions of Line 10, respectively, and the related assets are included in our Liquids Pipeline segment.

We expect to close the sale of Line 10 within one year, subject to regulatory approval and certain closing conditions. As such, during the first quarter of 2018, we classified Line 10 assets as held for sale and measured them at the lower of their carrying value or fair value less costs to sell, which resulted in a loss of $154 million ($95 million after-tax attributable to us) included within Asset impairment on the Consolidated Statements of Earnings for the six months ended June 30, 2018.

The table below summarizes the presentation of net assets held for sale in our Consolidated Statements of Financial Position:



	June 30, 2018		December 31, 2017
(millions of Canadian dollars)
Accounts receivable and other (current assets held for sale)	363		424
Deferred amounts and other assets (long-term assets held for sale)	1,186		1,190
Accounts payable and other (current liabilities held for sale)	(348	)	(315	)
Other long-term liabilities (long-term liabilities held for sale)	(43	)	(34	)
Net assets held for sale	1,158		1,265

OTHER

Canadian Natural Gas Gathering and Processing Businesses

On July 4, 2018, we entered into agreements with Brookfield Infrastructure Partners L.P. and its institutional partners to sell our Canadian natural gas gathering and processing businesses for a cash purchase price of approximately $4.31 billion, subject to customary closing adjustments and receipt of regulatory approvals. Separate agreements were entered into for those facilities currently governed by provincial regulations and those governed by federal regulations. The sale of the provincially regulated facilities is expected to close in 2018 for proceeds of approximately $2.5 billion and the sale of the federally regulated facilities is expected to close in mid-2019 for proceeds of approximately $1.8 billion.

Renewable Energy Generation Assets

On May 9, 2018, we entered into agreements with the Canadian Pension Plan Investment Board (CPPIB) to sell a 49% interest in all of our Canadian renewable energy generation assets, 49% of two large United States renewable assets and 49% of our interest in the Hohe See Offshore wind farm and its subsequent expansion, both concurrently under construction in Germany, (collectively, the Renewable Assets). Proceeds from the transaction are approximately $1.75 billion. In addition, CPPIB will fund their pro-rata share of the remaining capital expenditures on the Hohe See Offshore wind project. We will maintain a 51% interest in the Renewable Assets and continue to manage, operate and provide administrative services for these assets.

On August 1, 2018, we closed the sale of the Renewable Assets for total cash proceeds of $1.75 billion less customary closing items. These assets were a part of our Green Power and Transmission segment.

Also during the second quarter of 2018, a deferred income tax recovery of $258 million ($190 million attributable to us) was recorded in the three and six months ended June 30, 2018 as a result of the agreement entered into for the Renewable Assets (Note 12).