CONSOL Energy Inc | 2013 | FY | 3


NOTE 2—DISCONTINUED OPERATIONS:
In December 2013, CONSOL Energy completed the sale of its Consolidation Coal Company (CCC) subsidiary, which includes all five of its longwall coal mines in West Virginia, to a subsidiary of Murray Energy Corporation (Murray Energy). CONSOL Energy retained overriding royalty interests in certain reserves sold in the agreement. Murray Energy also assumed $2,050,656 of CONSOL Energy's employee benefit obligations valued as of December 5, 2013 and its UMWA 1974 Pension Trust obligations. Murray Energy is primarily liable for all 1993 Coal Act liabilities. Cash proceeds of $825,285 were received related to this transaction, which were net of $24,715 in transaction fees. Proceeds are subject to adjustments related to working capital. A pre-tax gain of $1,035,346 was included in Income from Discontinued Operations on the Consolidated Statement of Income.
For all periods presented in the accompanying Consolidated Statement of Income, the sale of CCC was classified as discontinued operations. There were no other active businesses classified as discontinued operations in the three-year period ended December 31, 2013.
In late 2013, CONSOL Energy reclassified CCC to discontinued operations based on the decision to divest the business. The Consolidated Financial Statements for all periods presented were reclassified to reflect the business in discontinued operations. The divestiture of the CCC was completed on December 5, 2013.
The following table details selected financial information for the divested business included within discontinued operations:
 
 
 
For the Years Ended December 31,
  
  
2013
 
2012
  
2011
Sales
 
$
2,598,875

 
$
1,717,926

 
$
1,740,196

Income (Loss) from operations before income taxes
 
$
969,685

 
$
90,587

 
$
(84,972
)
Income taxes (expense) benefit
 
(389,893
)
 
(20,473
)
 
35,794

Income (loss) from discontinued operations
 
$
579,792

 
$
70,114

 
$
(49,178
)

The major classes of assets and liabilities of discontinued operations are as follows:
 
 
  
December 31, 2013
 
December 31, 2012
Assets:
  
 
 
 
Inventory
 
$

 
$
76,958

Current Deferred Income Tax Asset
 

 
63,327

Other Current Assets
 

 
8,945

Properties, plants, and equipment
 

 
1,682,909

Deferred Income Tax Asset
 

 
771,270

Other assets
 

 
10,842

Assets of discontinued operations
 
$

 
$
2,614,251

Liabilities:
 
 
 
 
Current Liabilities
 
$
28,239

 
$
233,214

Long Term Debt
 

 
1,573

Postretirement Benefits Other Than Pensions
 

 
1,949,801

Pneumoconiosis Benefits
 

 
60,645

Workers' Compensation
 

 
95,252

Mine Closing
 

 
156,909

Other liabilities
 

 
15,644

Liabilities of discontinued operations
 
$
28,239

 
$
2,513,038


us-gaap:DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock