FORM 10-K
83
MDU RESOURCES G ROUP, INC.
Operating results related to Innovatum for the years ended December 31, 2007, 2006 and 2005, were as follows:
2007
2006
2005
(In thousands)
Operating revenues
$1,748
$ 1,827
$ 2,983
Loss from discontinued operations before income tax benefit
(210)
(5,994)
(1,506)
Income tax benefit
(316)
(3,834)
(731)
Income (loss) from discontinued operations, net of tax
$ 106
$(2,160)
$ (775)
The income tax benefit for the year ended December 31, 2006, is larger than the customary relationship between the income tax benefit
and the loss before tax due to a capital loss tax benefit (which reflects the effect of the $4.3 million and $4.0 million goodwill impairments
in 2006 and 2004, respectively) resulting from the sale of the Innovatum stock.
Operating results related to the domestic independent power production assets for the years ended December 31, 2007, 2006 and 2005,
were as follows:
2007
2006
2005
(In thousands)
Operating revenues
$125,867
$66,145
$48,508
Income from discontinued operations (including gain
on disposal in 2007 of $142.4 million) before income tax
expense (benefit)
177,666
9,276
10,828
Income tax expense (benefit)
68,438
(863)
261
Income from discontinued operations, net of tax
$109,228
$10,139
$10,567
The income tax benefit for the year ended December 31, 2006, and the lower income tax expense for the year ended December 31, 2005,
reflect a renewable electricity production tax credit of $4.4 million and $4.1 million, respectively.
Revenues at the former independent power production operations were recognized based on electricity delivered and capacity provided,
pursuant to contractual commitments and, where applicable, revenues were recognized under EITF No. 91-6 ratably over the terms of the
related contract. Arrangements with multiple revenue-generating activities were recognized under EITF No. 00-21 with the multiple
deliverables divided into separate units of accounting based on specific criteria and revenues of the arrangements allocated to the separate
units based on their relative fair values.
The carrying amounts of the major assets and liabilities related to the domestic independent power production assets held for sale, as well
as the major assets and liabilities related to Innovatum, at December 31, 2007 and 2006, were as follows:
2007
2006
(In thousands)
Cash and cash equivalents
$ --
$
1,878
Receivables, net
--
8,307
Inventories
179
490
Prepayments and other current assets
--
1,981
Total current assets held for sale
$179
$ 12,656
Net property, plant and equipment
$ --
$390,679
Goodwill
--
11,167
Other intangible assets, net
--
7,162
Other
--
2,257
Total noncurrent assets held for sale
$ --
$ 411,265
Accounts payable
$ --
$ 11,557
Other accrued liabilities
--
3,343
Total current liabilities held for sale
$ --
$ 14,900
Deferred income taxes
$ --
$ 27,956
Other liabilities
--
2,577
Total noncurrent liabilities held for sale
$ --
$ 30,533
