For the 2005 year, income tax expense attributable to continuing operations was $18.5 million, which included a current federal tax expense of $13.7 million, a non-cash deferred federal tax expense of $3.9 million and state tax expense of $889,000. For the 2004 year, income tax expense attributable to continuing operations was $11.1 million, which included a current federal tax expense of $10.4 million, a non-cash deferred federal tax benefit of $900,000 and state taxes of $1.6 million.
Energy Consolidation. Effective December 31, 2005, Hallwood Energy II, L.P., and Hallwood Exploration were consolidated into Hallwood Energy 4, L.P., which was renamed Hallwood Energy, L.P. The Company owns approximately 26% (22% after consideration of profits interests) of Hallwood Energy, L.P. During 2005, the Company invested approximately $40.5 million in its energy affiliates, including approximately $22.2 million in the fourth quarter.
Texas based The Hallwood Group Incorporated is a diversified holding company operating in two industry segments: real estate and textile products. The Company's real estate operations formerly included 116 buildings under management in six states. The Company's textile products subsidiary is an integrated textile company that develops and produces innovative woven fabrics through specialized finishing, treating and coating processes.