Discontinued Operations and Asset Impairments

9 Months Ended

Sep. 30, 2016

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations and Asset Impairments

15. Discontinued Operations and Asset Impairments

TECO Coal

On Sept. 21, 2015, TECO Energy’s subsidiary, TECO Diversified, entered into an SPA and completed the sale of all of its ownership interest in TECO Coal to Cambrian.  The SPA did not provide for an up-front purchase payment, but provides for future contingent consideration of up to $60 million that may be paid yearly through 2019 if certain coal benchmark prices reach certain levels. The 2015 benchmark price was not reached and no contingent consideration payment was triggered. TECO Energy retains certain deferred tax assets and personnel-related liabilities, but all other TECO Coal assets and liabilities, including working capital, asset retirement obligations and workers compensation reserves, were transferred in the transaction.  Letters of indemnity related to TECO Coal reclamation bonds will remain in effect until the bonds are replaced by Cambrian (see description of guarantees in Note 8). The SPA contained customary representations, warranties and covenants (see Note 8 for description of a claim filed by Cambrian related to the SPA). The costs shown for 2016 in the table below reflects charges for personnel-related liabilities that remained with TECO Energy and legal costs associated with the claim related to the SPA.

Since the closing of the sale, TECO Energy has not had influence over operations of TECO Coal, therefore the contingent payments are not considered to meet the definition of direct cash flows under the applicable discontinued operations FASB guidance.

TECO Guatemala

In 2012, TECO Guatemala completed the sale of its interests in the Alborada and San José power stations, and related solid fuel handling and port facilities in Guatemala. All periods presented reflect the classification of results from operations for TECO Guatemala and certain charges at Parent that directly relate to TECO Guatemala as discontinued operations. While TECO Energy and its subsidiaries no longer have assets or operations in Guatemala, its subsidiary, TECO Guatemala Holdings, LLC, has retained its rights under its arbitration claim filed against the Republic of Guatemala (see Note 8). The charges shown in the table below are legal costs associated with that claim.  

Combined Components of Discontinued Operations

The following table provides selected components of discontinued operations related to the sales of TECO Coal and TECO Guatemala:

Components of income from discontinued operations	Three months ended						Nine months ended
	Sept. 30,						Sept. 30,
(millions)	2016			2015			2016			2015
Revenues—TECO Coal	$	0.0		$	51.6		$	0.0		$	200.4
Loss from operations—TECO Coal		(0.1	)		(7.4	)		(0.2	)		(16.4	)
Loss on sale—TECO Coal		0.0			(10.0	)		0.0			(10.0	)
Loss on impairment—TECO Coal		0.0			0.0			0.0			(78.6	)
Loss from operations—TECO Guatemala		(0.1	)		(0.4	)		(0.2	)		(0.5	)
Loss from discontinued operations—TECO Coal		(0.1	)		(17.4	)		(0.2	)		(105.0	)
Loss from discontinued operations—TECO Guatemala		(0.1	)		(0.4	)		(0.2	)		(0.5	)
Loss from discontinued operations		(0.2	)		(17.8	)		(0.4	)		(105.5	)
Benefit for income taxes		0.2			6.1			0.3			38.3
Loss from discontinued operations, net	$	0.0		$	(11.7	)	$	(0.1	)	$	(67.2	)