Discontinued Operations and Assets and Liabilities Held for Sale
On September 1, 2013, NiSource sold the commercial and industrial natural gas portfolio of its unregulated natural gas marketing business. The sale included the physical contracts and associated financial hedges that comprise the portfolio, as well as the gas inventory and customer deposits of the business. For the year ended December 31, 2013, an after tax loss of $1.5 million was included in Gain on Disposition of Discontinued Operations, net of taxes in the Statements of Consolidated Income. The assets and liabilities sold were classified as held for sale as of December 31, 2012. Refer to Note 9, "Risk Management Activities" for additional information regarding the price risk assets and liabilities of the business.
During 2012, NiSource began marketing to sell the service plan and leasing business lines of its Retail Services business. As of December 31, 2012, the assets and liabilities of the business lines met the criteria to be classified as held for sale in accordance with GAAP. Additionally, the results of operations and cash flows are classified as discontinued operations for all periods presented. The sale of the business lines closed in January 2013 resulting in gain from the disposal of discontinued operations of $36.4 million after taxes, which was recorded during the first quarter of 2013.
There were no assets and liabilities of discontinued operations and held for sale on the Consolidated Balance Sheet at December 31, 2013.
The assets and liabilities of discontinued operations and held for sale on the Consolidated Balance Sheet at December 31, 2012 by segment were:
|
| | | | | | | | | | | | |
(in millions) | | | | |
Assets of discontinued operations and held for sale: | Property, plant and equipment, net | Price risk management assets | Other Assets | Total |
Gas Distribution Operations | $ | 21.5 |
| $ | — |
| $ | 4.5 |
| $ | 26.0 |
|
Electric Operations | — |
| — |
| 0.7 |
| 0.7 |
|
Corporate and Other | — |
| 107.0 |
| 0.2 |
| 107.2 |
|
Total | $ | 21.5 |
| $ | 107.0 |
| $ | 5.4 |
| $ | 133.9 |
|
| | | | |
Liabilities of discontinued operations and held for sale: | | Price risk management liabilities | Other Liabilities | Total |
Gas Distribution Operations | | $ | — |
| $ | 3.3 |
| $ | 3.3 |
|
Electric Operations | | — |
| 0.6 |
| 0.6 |
|
Corporate and Other | | 104.7 |
| — |
| 104.7 |
|
Total | | $ | 104.7 |
| $ | 3.9 |
| $ | 108.6 |
|
Total assets and liabilities of discontinued operations and held for sale in the tables above relate to the commercial and industrial portfolio of NiSource's unregulated natural gas marketing business and the service plan and leasing business lines of NiSource's Retail Services business.
Results from discontinued operations are provided in the following table. These results are primarily from NiSource's Retail Services business, a settlement at NiSource's former exploration and production subsidiary, CER, NiSource's unregulated natural gas marketing business and Columbia Propane. Income in 2013 is comparable to 2012. Income in 2012 was $17.8 million higher than 2011 due primarily to a reserve at NiSource's unregulated marketing business partially offset by income at NiSource's Retail Services business.
|
| | | | | | | | | | | |
Year Ended December 31, (in millions) | 2013 | | 2012 | | 2011 |
Net Revenues from Discontinued Operations | $ | 2.5 |
| | $ | 37.1 |
| | $ | 15.3 |
|
Income (Loss) from discontinued operations | 11.6 |
| | 11.3 |
| | (16.8 | ) |
Income tax expense (benefit) | 5.3 |
| | 4.0 |
| | (6.3 | ) |
Income (Loss) from Discontinued Operations - net of taxes | $ | 6.3 |
| | $ | 7.3 |
| | $ | (10.5 | ) |
Gain on Disposition of Discontinued Operations - net of taxes | $ | 34.9 |
| | $ | — |
| | $ | — |
|
