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EQUITY METHOD INVESTMENT
3 Months Ended
Mar. 31, 2016
Equity Method Investments and Joint Ventures [Abstract]  
EQUITY METHOD INVESTMENT
EQUITY METHOD INVESTMENT

In addition to the investment made in 2015, in January 2016, the Company invested in a second limited liability company established to produce refined coal, which is then sold to a utility to produce electricity.  The production and sale of refined coal is eligible for renewable energy tax credits under Section 45 of the Internal Revenue Code.  Under the terms of the investment, effective control lies with a co-investor who manages the day-to-day operations of the entity. 

The Company will fund its share of operating expenses of the entity through February 2019 and receive tax credits in proportion to its equity investment. The investment will be accounted for under the equity method of accounting.  As of March 31, 2016, the balance of the combined refined coal investments was $9 million and is included on the balance sheet under Other assets. During the three months ended March 31, 2016, the Company recorded $6 million in equity losses and a total tax benefit of $10 million, including energy tax credits, as reflected in the Company’s effective tax rate. The investments contributed $4 million to net earnings for the three months ended March 31, 2016.