Discontinued Operation

9 Months Ended

Sep. 30, 2012

Discontinued Operation [Abstract]

Discontinued Operation

Note 6 – Discontinued Operation

On February 27, 2012, the Company completed the sale of contracts, inventory and certain equipment associated with the refined products segment of its marketing business.  Revenues from this segment included in net earnings from discontinued operations totaled $25,707,000 and $125,709,000 for the nine-month periods ended September 30, 2012 and 2011, respectively.  This business experienced marginal results in recent years including an operating loss of $788,000 for the year 2011.  The Company received $2 million in cash proceeds plus a cash payment of $1,546,000 for the agreed value of refined product inventories on the date of sale.  The net gain recognized upon this sale totaled $1,622,000.  The Company is conducting an orderly wind-down of the operation which primarily consists of collecting outstanding accounts receivable and satisfying all existing obligations.  The Company's fee interest in certain parcels of real estate was retained and the estimated fair value of such properties exceeded the Company's cost basis in the properties.  Therefore, an impairment assessment of long-lived assets was not necessary.  The proceeds secured from this transaction exceeded the sum of carrying costs of the assets sold plus severance and other wind-down costs and, as a result, pre-tax earnings from this former segment totaled $523,000 for the nine months ended September 30, 2012 with net wind-down expenses totaling $114,000 during the third quarter of 2012.  The pre-tax results from this segment for the first nine months of 2011 produced a loss of $309,000.  Retained accounts receivable and payable obligations were substantially collected or satisfied as of the date of this report.