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Discontinued Operations
 12 Months Ended
Dec. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Discontinued Operations
 
In November 2013, the Company announced that it had entered into negotiations to sell its Hankinson, North Dakota ethanol production facility as part of management’s strategic plan to exit non-core businesses. On December 19, 2013, the Company sold its wholly-owned subsidiary Hankinson Renewable Energy, LLC which owned and operated an ethanol manufacturing facility in Hankinson, North Dakota, and its related assets for $170,000,000 plus working capital adjustments of approximately $3,118,000. During January 2014, the final adjustments to working capital were made and the Company received an additional $1.1 million in sales proceeds which has been included in discontinued operations for the period.  The Company has accounted for all operations related to Hankinson Renewable, LLC as discontinued operations for all periods presented.  The after-tax gain from disposal of the subsidiary (including associated inventories) was $52,542,000 in 2013 with an additional $781,000 in 2014 related to the final working capital adjustment.

The results of operations associated with the Hankinson discontinued operations are presented in the following table. 
(Thousands of dollars)
 
2014
 
2013
Revenues
 
$
—

 
$
366,707

Income (loss) from operations before income taxes
 
—

 
40,130

Gain on sale before income taxes
 
1,202

 
80,834

Total income (loss) from discontinued operations before taxes

1,202


120,964

Provision for income taxes
 
421

 
42,257

Income (loss) from discontinued operations

$
781


$
78,707





In September 2015, the Company determined that it had met held for sale criteria for its Hereford, Texas ethanol production facility. On September 25, 2015, the Company signed a letter of intent to sell this subsidiary for a gain and the transaction closed on November 12, 2015. We have classified the results of the Hereford plant as discontinued operations in our Consolidated and Combined Income Statement for all periods presented. Additionally, the related assets and liabilities associated with discontinued operations are classified as held for sale in our Consolidated Balance Sheet at December 31, 2014. The assets and liabilities as of December 31, 2014 are classified as current in our Consolidated Balance Sheet as we expected to close the transaction discussed above within one year. The Company believes that selling the ethanol plant represents a strategic shift for the Company and that the financial results of the plant meet the quantitative and qualitative thresholds discussed in ASU 2014-08, Reporting Discontinued Operations and Disclosures of Components of an Entity.

The financial results of our Hereford plant through December 31, 2015 are presented as income from discontinued operations, net of income taxes on our Consolidated and Combined Income Statement. The results of the Hereford ethanol plant have been included along with "Corporate" as a reconciling item within our segment footnote. The following table presents financial results of the Hereford business:
 
Twelve months ended December 31,
(Thousands of dollars)
2015
 
2014
 
2013
Revenues
 
 
 
 
 
Ethanol sales
$
154,502

 
$
223,904

 
$
269,254

Total revenues
154,502

 
223,904

 
269,254

Costs and operating expenses
 
 
 
 
 
Ethanol cost of goods sold
121,753

 
158,276

 
228,899

Station and other operating expenses
27,881

 
34,763

 
33,227

Depreciation and amortization
333

 
147

 
77

Selling, general and administrative expenses
1,382

 
1,635

 
3,568

Total costs and operating expenses
151,349

 
194,821

 
265,771

Income from operations
3,153

 
29,083

 
3,483

Other income (expense)
 
 
 
 
 
Gain (loss) on sale of assets
60,782

 
—

 
—

Other nonoperating income (expense)
—

 
994

 
—

Total other income (expense)
60,782

 
994

 
—

Income before income taxes
63,935

 
30,077

 
3,483

Income taxes
25,186

 
9,955

 
1,292

Net income
$
38,749

 
$
20,122

 
$
2,191








The following tables present the aggregate carrying amounts of the classes of held for sale assets and liabilities:
 
 
 
(Thousands of dollars)
 
2014
Carrying amount of assets included as part of discontinued operations:
 
 
Cash and cash equivalents
 
$
942

Accounts receivable - trade
 
1,625

Inventories, at lower of cost or market
 
25,868

Prepaid expenses and other current assets
 
3,062

Property, plant and equipment, net
 
5,043

Other assets
 
515

Deferred tax assets
 
19,273

Total assets classified as held for sale in the condensed consolidated balance sheet
 
$
56,328

 
 
2014
(Thousands of dollars)
 
 
Carrying amount of liabilities included as part of discontinued operations:
 
 
Trade accounts payable and accrued liabilities
 
$
5,728

Income taxes payable
 
7,238

Deferred income taxes, net
 
(41
)
Total liabilities classified as held for sale in the condensed consolidated balance sheet
 
$
12,925

The following table presents cash flow of the Hereford ethanol plant:
 
Twelve months ended December 31,
(Thousands of dollars)
2015
 
2014
 
2013
Net cash provided by (used in) discontinued operating activities
$
(17,887
)
 
$
28,741

 
$
30,810

Net cash provided by (used in) discontinued investing activities
$
86,322

 
$
(4,918
)
 
$
(1,959
)