Discontinued Operations

In December 2018, the Partnership sold VantaCore Partners LLC, its construction aggregates materials business for $205 million, before customary purchase price adjustments and transaction expenses, and recorded a gain of $13.1 million. The Partnership's debt agreements require that 75% of the asset sale proceeds be used to pay down the Opco Revolving Credit Facility (as defined in Note 13. Debt, Net) and 25% be offered to the holders of its Opco Senior Notes (as defined in Note 13. Debt, Net) on a pro-rata basis. The outstanding balance was repaid on the Opco Revolving Credit Facility in December 2018, $49 million was offered to the holders of the Opco Senior Notes in December 2018 and paid in January 2019 and the remaining $55 million of net cash proceeds was restricted as of December 31, 2018. NRP intends to use these remaining proceeds to repay its Opco Senior Notes as they amortize in 2019.

In July 2016, NRP Oil and Gas LLC ("NRP Oil and Gas") sold its non-operated oil and gas working interest assets for $116.1 million in gross sales proceeds. The sale had an effective date of April 1, 2016.

The Partnership's exit from both its construction aggregates materials business and non-operated oil and gas working interest business represented strategic shifts to reduce debt and focus on its Coal Royalty and Other and Soda Ash business segments. As a result, the Partnership classified the assets and liabilities, operating results and cash flows of these businesses as discontinued operations in its Consolidated Balance Sheets, Consolidated Statements of Comprehensive Income and Consolidated Statements of Cash Flows for all periods presented.

The following tables present the carrying amounts of the Partnership's assets and liabilities of discontinued operations in the Consolidated Balance Sheets:



	December 31, 2018
(In thousands)	Construction Aggregates		NRP Oil and Gas		Total
ASSETS
Current assets:
Accounts receivable, net	$	5	$	988	$	993
Total assets of discontinued operations	$	5	$	988	$	993

LIABILITIES
Current liabilities:
Accounts payable (including affiliates)	$	181	$	—	$	181
Accrued liabilities	766		—		766
Total liabilities of discontinued operations	$	947	$	—	$	947



	December 31, 2017
(In thousands)	Construction Aggregates		NRP Oil and Gas		Total
ASSETS
Current assets:
Cash and cash equivalents	$	2,847	$	—	$	2,847
Accounts receivable, net	22,976		991		23,967
Inventory	7,553		—		7,553
Prepaid expenses and other	2,056		—		2,056
Total current assets of discontinued operations	35,432		991		36,423
Land	1,239		—		1,239
Plant and equipment, net	44,822		—		44,822
Mineral rights, net	105,466		—		105,466
Intangible assets, net	2,734		—		2,734
Other assets	1,681		—		1,681
Total assets of discontinued operations	$	191,374	$	991	$	192,365

LIABILITIES
Current liabilities:
Accounts payable (including affiliates)⁽¹⁾	$	6,019	$	—	$	6,019
Accrued liabilities	5,348		—		5,348
Other	—		401		401
Total current liabilities of discontinued operations	11,367		401		11,768
Other non-current liabilities	2,220		—		2,220
Total liabilities of discontinued operations	$	13,587	$	401	$	13,988


(1)	See Note 15. Related Party Transactions for additional information on the Partnership's related party liabilities.

The following tables present summarized financial results of the Partnership's discontinued operations in the Consolidated Statements of Comprehensive Income:



	For the Year Ended December 31, 2018
(In thousands)	Construction Aggregates			NRP Oil and Gas			Total
Revenues and other income:
Construction aggregates	$	116,066		$	—		$	116,066
Road construction and asphalt paving services	18,400			—			18,400
Oil and gas	—			(3		)	(3		)
Gain on asset sales, net	13,414			—			13,414
Total revenues and other income	$	147,880		$	(3	)	$	147,877

Operating expenses:
Operating and maintenance expenses (including affiliates)⁽¹⁾	$	117,568		$	134		$	117,702
Depreciation, depletion and amortization	12,218			—			12,218
Asset impairments	232			—			232
Total operating expenses	$	130,018		$	134		$	130,152

Interest expense, net	(38		)	—			(38		)
Income (loss) from discontinued operations	$	17,824		$	(137	)	$	17,687


(1)	See Note 15. Related Party Transactions for additional information on the Partnership's related party expenses.



	For the Year Ended December 31, 2017
(In thousands)	Construction Aggregates			NRP Oil and Gas			Total
Revenues and other income:
Construction aggregates	$	112,970		$	—		$	112,970
Road construction and asphalt paving services	18,411			—			18,411
Oil and gas	—			38			38
Gain (loss) on asset sales	311			(289		)	22
Total revenues and other income	$	131,692		$	(251	)	$	131,441

Operating expenses:
Operating and maintenance expenses (including affiliates)⁽¹⁾	$	111,633		$	290		$	111,923
Depreciation, depletion and amortization	12,579			—			12,579
Asset impairments	64			—			64
Total operating expenses	$	124,276		$	290		$	124,566

Interest expense, net	(693		)	—			(693		)
Income (loss) from discontinued operations	$	6,723		$	(541	)	$	6,182


(1)	See Note 15. Related Party Transactions for additional information on the Partnership's related party expenses.



	For the Year Ended December 31, 2016
(In thousands)	Construction Aggregates		NRP Oil and Gas			Total
Revenues and other income:
Construction aggregates	$	103,755	$	—		$	103,755
Road construction and asphalt paving services	17,047		—			17,047
Oil and gas	—		16,486			16,486
Gain on asset sales, net	13		8,274			8,287
Total revenues and other income	$	120,815	$	24,760		$	145,575

Operating expenses:
Operating and maintenance expenses (including affiliates)⁽¹⁾	$	100,656	$	11,503		$	112,159
Depreciation, depletion and amortization	14,506		7,527			22,033
Asset impairments	1,065		564			1,629
Total operating expenses	$	116,227	$	19,594		$	135,821

Interest expense, net	—		(3,488		)	(3,488		)
Income from discontinued operations	$	4,588	$	1,678		$	6,266


(1)	See Note 15. Related Party Transactions for additional information on the Partnership's related party expenses.

The following table presents supplemental cash flow information of the Partnership's discontinued operations:



	Year Ended December 31,
(In thousands)	2018		2017		2016
Cash paid for interest	$	—	$	—	$	1,906
Plant, equipment and mineral rights funded with accounts payable or accrued liabilities	881		294		—

Capital expenditures related to the Partnership's discontinued operations were $10.9 million, $7.6 million and $6.7 million during the years ended December 31, 2018, 2017 and 2016, respectively.