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Discontinued Operations and Assets and Liabilities Held for Sale
 6 Months Ended
Jun. 30, 2011
Discontinued Operations and Assets and Liabilities Held for Sale  
Discontinued Operations and Assets and Liabilities Held for Sale
6. Discontinued Operations and Assets and Liabilities Held for Sale

The assets of discontinued operations and held for sale on the Condensed Consolidated Balance Sheet (unaudited) at June 30, 2011 were:

 

(in millions)                     

Assets of discontinued operations and held for sale:

    Property, plant and
equipment, net		      Other assets      Total  

Columbia Transmission

    $ 2.3       $ —         $ 2.3   
                          

Total

    $ 2.3       $ —         $ 2.3   
                          

There were no liabilities of discontinued operations and held for sale at June 30, 2011.

The assets of discontinued operations and held for sale on the Consolidated Balance Sheet at December 31, 2010 were:

 

(in millions)                     

Assets of discontinued operations and held for sale:

    Property, plant and
equipment, net		      Other assets      Total  

NiSource Corporate Services

    $ 5.6       $ —         $ 5.6   

Columbia Transmission

      2.3         —           2.3   
                          

Total

    $ 7.9       $ —         $ 7.9   
                          

Assets classified as discontinued operations or held for sale are no longer depreciated. There were no liabilities of discontinued operations and held for sale at December 31, 2010.

On February 22, 2011, NiSource Corporate Services sold the Marble Cliff facility for $6.0 million. The sale resulted in a net gain of $0.2 million after deducting the fees associated with the transaction.

On June 18, 2009, Columbia Transmission received approval from the FERC to abandon certain natural gas pipeline facilities by sale of its Line R System in West Virginia. Assets held for sale related to the Line R System have a net book value of $2.1 million. The sales transaction is expected to close in the fourth quarter of 2011.

Lake Erie Land, which is a wholly-owned subsidiary of NiSource Development Company, was in the process of selling real estate over a 10-year period as a part of an agreement reached in June 2006 with a private real estate development group. In the second quarter of 2009, the developer was unable to meet certain contractual obligations under the sale agreement and consequently the Company sought remedial actions. In April 2011, NiSource settled a mortgage foreclosure action against the developer, reacquired the Sand Creek Country Club, and purchased additional properties owned by the developer to be marketed along with the existing Lake Erie Land properties to prospective purchasers. This transaction qualified as a business combination under GAAP. The properties were acquired at fair value and included the Sand Creek Country Club and additional commercial properties for a total of $15.8 million and $3.5 million of land and are included in Other Investments and Other Property in the Condensed Consolidated Balance Sheet (unaudited) at June 30, 2011. NiSource's total investment in Lake Erie Land after these acquisitions is $51.3 million as of June 30, 2011. NiSource is seeking to market the Lake Erie Land properties, but has determined they do not meet the criteria to be classified as assets held for sale under GAAP as of June 30, 2011. The revenue and earnings of Sand Creek Country Club are not material.

 

Results from discontinued operations, which primarily arise from reserve changes for NiSource's former exploration and production subsidiary, CER, are provided in the following table:

     Three Months Ended
June 30,		      Six Months Ended
June 30,		  

(in millions)

   2011     2010      2011     2010  

Revenues from Discontinued Operations

    $ —        $ —         $ —        $ 0.7   
                                 

(Loss) Income from discontinued operations

      (0.8 )      0.2         (0.2 )      (0.1 ) 

Income tax (benefit) expense

      (0.2 )      0.1         —          —     
                                 

(Loss) Income from Discontinued Operations - net of taxes

    $ (0.6 )    $ 0.1       $ (0.2 )    $ (0.1 ) 
                                 

Gain on Disposition of Discontinued Operations - net of taxes

    $ —        $ —         $ —        $ 0.1