-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, H1h2nob29z4iWXkJfKLfsejXGW2N7gvwZmUxY3TSzCxlHjwSd2SaVYOCamNuitM9 xc0x1r7WD4UyF0jYG5oYHA== 0000101778-09-000071.txt : 20090511 0000101778-09-000071.hdr.sgml : 20090511 20090511143839 ACCESSION NUMBER: 0000101778-09-000071 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 20090501 ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20090511 DATE AS OF CHANGE: 20090511 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MARATHON OIL CORP CENTRAL INDEX KEY: 0000101778 STANDARD INDUSTRIAL CLASSIFICATION: PETROLEUM REFINING [2911] IRS NUMBER: 250996816 STATE OF INCORPORATION: DE FISCAL YEAR END: 1029 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05153 FILM NUMBER: 09814203 BUSINESS ADDRESS: STREET 1: P O BOX 3128 CITY: HOUSTON STATE: TX ZIP: 77253-3128 BUSINESS PHONE: 7136296600 MAIL ADDRESS: STREET 1: 5555 SAN FELIPE ROAD CITY: HOUSTON STATE: TX ZIP: 77056 FORMER COMPANY: FORMER CONFORMED NAME: USX CORP DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: UNITED STATES STEEL CORP/DE DATE OF NAME CHANGE: 19860714 8-K 1 form8k2009may1.htm MAY 11 2009 VOLUNTARY FILING OF XBRL TAGGED FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2008 form8k2009may1.htm




UNITED STATES
 SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
     
Date of Report (Date of Earliest Event Reported):
 
May 11, 2009


Marathon Oil Corporation
(Exact name of registrant as specified in its charter)
     
Delaware
1-5153
25-0996816
(State or other jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)
  
   
5555 San Felipe Road, Houston, Texas
 
77056
(Address of principal executive offices)
 
(Zip Code)
     
Registrant’s telephone number, including area code:
 
(713) 629-6600

Not Applicable
Former name or former address, if changed since last report

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 [  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 [  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 [  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))




 
 


 


 

Item 8.01
Other Events.

Attached as Exhibit 100 to this Current Report on Form 8-K are the following materials from the Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2008, of Marathon Oil Corporation., filed on November 7 , 2008, formatted in XBRL (eXtensible Business Reporting Language):
(i)  
the Consolidated Statements of Operations,
(ii)  
the Consolidated Balance Sheets,
(iii)  
the Consolidated Statements of Cash Flows,
(iv)  
the notes to these financial statements tagged as blocks of text.

These XBRL-formatted documents are not readable in HyperText Markup Language (HTML).  Users of this data are advised pursuant to Rule 401 of Regulation S-T that the financial information contained in the XBRL documents is unaudited and these are not the official publicly filed financial statements of Marathon Oil Corporation. The purpose of submitting these XBRL formatted documents is to test the related format and technology and, as a result, investors should continue to rely on the official filed version of the furnished documents and not rely on this information in making investment decisions.

In accordance with Rule 402 of Regulation S-T, the information in this Current Report on Form 8-K, including Exhibit 100, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.



Item 9.01
Financial Statements and Exhibits
 
(d)
Exhibits
 
100
The following materials from Marathon Oil Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2008, filed on November 7, 2008, formatted in XBRL (eXtensible Business Reporting Language):
(i) the Consolidated Statements of Operations,
(ii) the Consolidated Balance Sheets,
(iii) the Consolidated Statements of Cash Flows,
(iv) the notes to these financial statements tagged as blocks of text.  
 




 
2
 
 
 
 
 
EXHIBIT INDEX


Exhibit
Number
 
Description
   Exhibit 100.INS
 
XBRL Instance Document
     
   Exhibit 100.SCH
 
XBRL Taxonomy Extension Schema Document
     
   Exhibit 100.CAL
 
XBRL Taxonomy Extension Calculation Linkbase Document
     
   Exhibit 100.LAB
 
XBRL Taxonomy Extension Label Linkbase Document
     
   Exhibit 100.PRE
 
XBRL Taxonomy Extension Presentation Linkbase Document



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
   
Marathon Oil Corporation
  
       
 
May 11, 2009
 
 
By:
 
 
/s/  Michael K. Stewart
         
       
Name: Michael K. Stewart
       
Title: Vice President, Accounting and Controller

 
3
 

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All such adjustments are of a normal recurring nature unless disclosed otherwise. These consolidated financial statements, including notes, have been prepared in accordance with the applicable rules of the Securities and Exchange Commission and do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America for complete financial state ments. Certain reclassifications of prior year data have been made to conform to 2008 classifications. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Marathon Oil Corporation (&#8220;Marathon&#8221; or the &#8220;Company&#8221;) 2007 Annual Report on Form 10-K. The results of operations for the quarter and nine-months ended September 30, 2008 are not necessarily indicative of the results to be expected for the full year.</FONT></DIV></body></html> <html><head><meta http-equiv="Content-Type" content="text/html; charset=utf-8" /></head><body><DIV><FONT SIZE=2><P>2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;New Accounting Standards<BR>In April 2007, the Financial Accounting Standards Board (&#8220;FASB&#8221;) issued FASB Staff Position (&#8220;FSP&#8221;) FASB Interpretation No. 39 (&#8220;FSP FIN 39-1&#8221;), &#8220;Offsetting of Amounts Related to Certain Contracts&#8221;, which allows a party to a master netting agreement to offset the fair value amounts related to the right to reclaim collateral against the fair value amounts recognized for derivative instruments. Such treatment was consistent with Marathon&#8217;s accounting policy; therefore, adoption of FSP FIN No. 39-1 effe ctive January 1, 2008, did not have any effect on our consolidated financial position.<BR>In February 2007, the FASB issued Statement of Financial Accounting Standards (&#8220;SFAS&#8221;) No. 159, &#8220;The Fair Value Option for Financial Assets and Financial Liabilities.&#8221; This statement permits entities to choose to measure at fair value many financial instruments and certain other items that are not currently required to be measured at fair value. It requires that unrealized gains and losses on items for which the fair value option has been elected be recorded in net income. The statement also establishes presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. We did not elect the fair value option when this standard became effective on January 1, 2008.<BR>In September 2006, the FASB issued SFAS No. 157, &#8220;Fair Value Measurements.&am p;#8221; This statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. SFAS No. 157 does not require any new fair value measurements but may require some entities to change their measurement practices. In February 2008, the FASB issued FSP FAS 157-1, &#8220;Application of FASB Statement No. 157 to FASB Statement No. 13 and Other Accounting Pronouncements That Address Fair Value Measurements for Purposes of Lease Classification or Measurement under Statement 13,&#8221; which removes certain leasing transactions from the scope of SFAS No. 157, and FSP FAS 157-2, &#8220;Effective Date of FASB Statement No. 157,&#8221; which defers the effective date of SFAS No. 157 for one year for certain nonfinancial assets and nonfinancial liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis. Effective January 1, 2008, we adopted SFAS No. 157, except for measurements of those nonfinancial assets and liabilities subject to the one-year deferral, which for us includes impairments of goodwill, intangible assets and other long-lived assets, and initial measurement of asset retirement obligations, asset exchanges, business combinations and partial sales of proved properties. Adoption did not have a significant effect on our consolidated results of operations or financial position. The additional disclosures regarding assets and liabilities recorded at fair value and measured under SFAS No. 157 are presented in Note 11.<BR>In October 2008, the FASB issued FSP FAS 157-3, &#8220;Determining the Fair Value of a Financial Asset When the Market for That Asset Is Not Active,&#8221; (&#8220;FSP FAS 157-3&#8221;) which clarifies the application of SFAS No. 157 in a market that is not active and provides an example to illustrate key considerations in determining the fair value of a financial asset when the market for that financial asset is not active. FSP FAS 157-3 is effective upon issuance, including prior periods for which financial statements have not been issued, and any revisions resulting from a change in the valuation technique or its application shall be accounted for as a change in accounting estimate. 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SIZE=2><P>4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Acquisition <BR>On October&#160;18, 2007, we completed the acquisition of all the outstanding shares of Western Oil Sands Inc. 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The estimated 2008 effective tax rate is reduced by approximately 4 percent by the reversal of previously recorded valuation allowances on Norwegian net operating losses.<BR>We are continuously undergoing examination of our U.S. federal income tax returns by the Internal Revenue Service. Such audits have been completed through the 2005 tax year. We believe adequate provision has been made for federal income taxes and interest which may become payable for years not yet settled. Further, we are routinely involved in U.S. state income tax audits and foreign jurisdiction tax audits. We believe all other audits will be resolved within the amounts paid and/or provided for these liabilities. 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A well on the Ozona prospect was re-entered and production casing was set in the second quarter of 2008. In October 2008, the development of the Ozona prospect was authorized by our board of directors.</FONT></DIV></body></html> <html><head><meta http-equiv="Content-Type" content="text/html; charset=utf-8" /></head><body><DIV><FONT SIZE=2><P>11.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Fair Value Measurements<BR>As defined in SFAS No. 157, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. SFAS No. 157 describes three approaches to measuring the fair value of assets and liabilities: the market approach, the income approach and the cost approach, each of which includes multiple valuation techniques. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to measure fair value by con verting future amounts, such as cash flows or earnings, into a single present value amount using current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace the service capacity of an asset. This is often referred to as current replacement cost. The cost approach assumes that the fair value would not exceed what it would cost a market participant to acquire or construct a substitute asset of comparable utility, adjusted for obsolescence. <BR>SFAS No. 157 does not prescribe which valuation technique should be used when measuring fair value and does not prioritize among the techniques. SFAS No. 157 establishes a fair value hierarchy that prioritizes the inputs used in applying the various valuation techniques. Inputs broadly refer to the assumptions that market participants use to make pricing decisions, including assumptions about risk. Level 1 inputs are given the highest priority in the fair value hierarchy while Le vel 3 inputs are given the lowest priority. The three levels of the fair value hierarchy are as follows.<BR>&#61623;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Level 1 &#8211; Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.<BR>&#61623;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Level 2 &#8211; Observable market-based inputs or unobservable inputs that are corroborated by market data. These are inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. <BR>&#61623;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Level 3 &#82 11; Unobservable inputs that are not corroborated by market data and may be used with internally developed methodologies that result in management&#8217;s best estimate of fair value.<BR>We use a market or income approach for recurring fair value measurements and endeavor to use the best information available. Accordingly, valuation techniques that maximize the use of observable inputs are favored. Financial assets and liabilities are classified in their entirety based on the lowest priority level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement of assets and liabilities within the levels of the fair value hierarchy. <BR>The following table presents net financial assets (liabilities) accounted for at fair value on a recurring basis as of September 30, 2008:</FONT></DIV><DIV><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width=25 height=18 align=left><font size=2>&#160;</font></td><td width=315 height=18 align=left style="border-bottom: 1px solid #000000;"><font size=2><i>(In millions)</i></font></td><td width=12 height=18 align=left style="border-bottom: 1px solid #000000;"><font size=2><i>&#160;</i></font></td><td width=65 height=18 align=center style="border-bottom: 1px solid #000000;"><font size=2>Level 1</font></td><td width=9 height=18 align=center style="border-bottom: 1px solid #000000;"><font size=2>&#160;</font></td><td width=12 height=18 align=center 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The fair value of the U.K. natural gas contracts is measured with an income approach by applying the difference between the contract price and the U.K. forward natural gas strip price to the expected sales volumes for the shorter of the remaining contract term or 18 months. These contracts originated in the early 1990s and expire in September 2009. The contract prices are reset annually in October based on the previous twelve-month changes in a basket of energy and other indices. Consequently, the prices under these contracts do not track forward natural gas pri ces. 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Amounts reported in net income are classified as sales and other operating revenues or cost of revenues for commodity derivative instruments, as net interest and other financing income for interest rate derivative instruments and as cost of revenues for foreign currency derivatives, except those designated as hedges of future capital expenditures. Amounts related to foreign currency derivatives designated as hedges of future capital expenditures accumulate in other comprehensive income and are amortized to depletion, depreciation and amortization on a units-of-production basis over the life of the capital asset.</FONT></DIV></body></html> <html><head><meta http-equiv="Content-Type" content="text/html; charset=utf-8" /></head><body><DIV><FONT SIZE=2><P>12.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Debt<BR>At September 30, 2008, we had $886 million of commercial paper, at a weighted average interest rate of 5.9 percent, outstanding under our U.S. commercial paper program which is supported by our $3.0 billion revolving credit facility. An additional $404 million in borrowings was outstanding under the revolving credit facility at a weighted average interest rate of 5.0 percent. Neither commercial paper nor borrowings under the revolving credit facility were outstanding at December 31, 2007.<BR>In March 2008, we issued $1 billion aggregate principal amount of senior notes bearing interest at 5.9 percent with a maturity date of March 15, 2018. Interest on the senior notes is payable semi-annually beginning September 15, 2008. <BR>In February 2008, the 805 million Canadian dollar revolving term credit facility of Marathon Oil Canada Corporation was repaid and the facility was terminated. </FONT></DIV></body></html> <html><head><meta http-equiv="Content-Type" content="text/html; charset=utf-8" /></head><body><DIV><FONT SIZE=2><P>13.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Stock-Based Compensation Plans<BR>The following table presents a summary of stock option award and restricted stock award activity for the nine month period ended September 30, 2008:</FONT></DIV><DIV><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width=25 height=18 align=left><font size=2>&#160;</font></td><td width=215 height=18 align=left><font size=2>&#160;</font></td><td width=24 height=18 align=left><font size=2>&#160;</font></td><td colspan=5 width=237 height=18 align=center style="border-bott om: 1px solid #000000;"><font 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749,282 stock options with tandem stock appreciation rights.<BR>(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The weighted average grant date fair value of stock option awards granted was $13.03 per share.</FONT></DIV></body></html> <html><head><meta http-equiv="Content-Type" content="text/html; charset=utf-8" /></head><body><DIV><FONT SIZE=2><P>14.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Stockholders&#8217; Equity<BR>Share repurchase &#8211; As of September 30, 2008, we had acquired 66&#160;million common shares at a cost of $2,922 million under our $5 billion authorized share repurchase program, including 8 million common shares acquired during the first nine months of 2008 at a cost of $402 million.</FONT></DIV></body></html> <html><head><meta http-equiv="Content-Type" content="text/html; charset=utf-8" /></head><body><DIV><FONT SIZE=2><P>15.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Commitments and Contingencies<BR>We are the subject of, or party to, a number of 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The ultimate resolution of these contingencies could, individually or in the aggregate, be material to our consolidated financial statements. However, management believes that we will remain a viable and competitive enterprise even though it is possible that these contingencies could be resolved unfavorably. Certain of our commitments are discussed below. <BR>We, along with some other defendants with ref inery operations, recently settled a number of lawsuits alleging methyl tertiary butyl ether (&#8220;MTBE&#8221;) contamination of water supply wells.&#160;&#160;We were a defendant in 40 of the cases settled. Our share of the cash portion of the settlement was paid in October 2008 and did not significantly impact our consolidated results of operations, financial position or cash flows. Under the settlement, the settling defendants, including our company, are responsible for addressing future MTBE contamination in certain water supply wells. 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style="border-top: 1px solid #000000;"><font size=2>&#160;</font></td></tr></table></DIV></body></html> <html><head><meta http-equiv="Content-Type" content="text/html; charset=utf-8" /></head><body><DIV><FONT SIZE=2><P>17.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Accounting Standards Not Yet Adopted<BR>In June 2008, the FASB issued FSP on EITF 03-6-1, &#8220;Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities&#8221; (&#8220;FSP EITF 03-6-1&#8221;) which provides that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and, therefore, need to be included in the earnings allocation in computing earnings per share (&#8221;EPS&#8221;) under the two-class method. FSP EITF 03-6-1 is effective January 1, 2009 and all p rior-period EPS data (including any amounts related to interim periods, summaries of earnings and selected financial data) will be adjusted retrospectively to conform to its provisions. Early application of FSP EITF 03-6-1 is not permitted. Although restricted stock awards meet this definition of participating securities, we do not expect application of FSP EITF 03-6-1 to have a significant impact on our reported EPS. <BR>In April 2008, the&#160;FASB issued&#160;FSP on FAS 142-3 (&#8220;FSP&#160;FAS 142-3&#8221;) which&#160;amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset under SFAS No. 142, &#8220;Goodwill and Other Intangible Assets.&#8221; The intent of this FSP is to improve the consistency between the useful life of a recognized intangible asset&#160;and the period of expected cash flows used to measure the fair value of the asset.&#160;&#160; F SP FAS 142-3 is effective on January 1, 2009, early adoption is prohibited.&#160; The provisions of FSP FAS 142-3 are to be applied prospectively to intangible assets acquired after the effective date, except for the disclosure requirements which must be applied prospectively to all intangible assets recognized as of, and subsequent to, the effective date.&#160; Since this standard will be applied prospectively, adoption is not expected to have a significant impact on our consolidated results of operations, financial position or cash flows.<BR>In March 2008, the FASB issued SFAS No. 161, &#8220;Disclosures about Derivative Instruments and Hedging Activities &#8211; an amendment of FASB Statement No. 133.&#8221; This statement expands the disclosure requirements for derivative instruments to provide information regarding (i) how and why an entity uses derivative instruments, (ii) how derivative instruments and related hedged items are accounted for under SFAS No. 133 and its related interpretations and (iii) how derivative instruments and related hedged items affect an entity&#8217;s financial position, financial performance and cash flows. To meet these objectives, the statement requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts and gains and losses on derivative instruments and disclosures about credit-risk-related contingent features in derivative agreements. This standard is effective January 1, 2009. The statement encourages but does not require disclosures for earlier periods presented for comparative purposes at initial adoption. We will expand our disclosures in accordance with SFAS No. 161 beginning in the first quarter of 2009; however, the adoption of this standard is not expected to have a significant impact on our consolidated results of operations, financial position or cash flows. <BR>In December 2007, the FASB issued SFAS No. 141 (Revised 2007), &#8220;Business Combi nations&#8221; (&#8221;SFAS No. 141 (R)&#8221;). This statement significantly changes the accounting for business combinations. Under SFAS No.141(R), an acquiring entity will be required to recognize all the assets acquired, liabilities assumed and any non-controlling interest in the acquiree at their acquisition-date fair value with limited exceptions. The statement expands the definition of a business and is expected to be applicable to more transactions than the previous business combinations standard. The statement also changes the accounting treatment for changes in control, step acquisitions, transaction costs, acquired contingent liabilities, in-process research and development, restructuring costs, changes in deferred tax asset valuation allowances as a result of a business combination and changes in income tax uncertainties after the acquisition date. Accounting for changes in valuation allowances for acquired deferred tax assets and the resolution of uncertain tax positions for prior business combinations will impact tax expense instead of impacting recorded goodwill. Additional disclosures are also required. SFAS No. 141(R) is effective on January 1, 2009 for all new business combinations. We are currently evaluating the provisions of this statement.<BR>Also in December 2007, the FASB issued SFAS No. 160, &#8220;Noncontrolling Interests in Consolidated Financial Statements - An Amendment of ARB No. 51.&#8221; This statement establishes new accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. Specifically, this statement clarifies that a noncontrolling interest in a subsidiary (sometimes called a minority interest) is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements, but separate from the parent's equity. It requires that the amount of consolidated net income attributable to the noncontrolling interest be clearly identi fied and presented on the face of the consolidated income statement. SFAS No. 160 clarifies that changes in a parent's ownership interest in a subsidiary that do not result in deconsolidation are equity transactions if the parent retains its controlling financial interest. In addition, this statement requires that a parent recognize a gain or loss in net income when a subsidiary is deconsolidated, based on the fair value of the noncontrolling equity investment on the deconsolidation date. Additional disclosures are required that clearly identify and distinguish between the interests of the parent and the interests of the noncontrolling owners. SFAS No. 160 is effective January 1, 2009 and early adoption is prohibited. The statement must be applied prospectively, except for the presentation and disclosure requirements which must be applied retrospectively for all periods presented in consolidated financial statements. We do not have significant noncontrolling interests in consolidated subsidiaries, and therefore, adoption of this standard is not expected to have a significant impact on our consolidated results of operations, financial position or cash flows. </FONT></DIV></body></html> <html><head><meta http-equiv="Content-Type" content="text/html; charset=utf-8" /></head><body><DIV><FONT SIZE=2><P>18.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Evaluation of Separation of Business&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<BR>On July 31, 2008, Marathon announced that the board of directors is evaluating the separation of Marathon into two independent, publicly-traded companies, each focused on its own set of business opportunities. One entity would consist of the Exploration and Production, Integrated Gas and Oil Sands Mining businesses; and the other entity would consist of the Refining, Marketing and Transportation business.</FONT></DIV></body></html> <html><head><meta http-equiv="Content-Type" content="text/html; charset=utf-8" /></head><body><DIV><FONT SIZE=2><P>19.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Subsequent Events<BR>On October 8, 2008, we completed the sale of our 50 percent ownership interest in Pilot Travel Centers LLC (&#8220;PTC&#8221;). Sale proceeds, before closing costs, were $625 million, with a pretax gain on the sale of approximately $125 million expected. Immediately preceding the sale, we received a $75 million redemption of our partnership interest from PTC that was accounted for as a return of investment.<BR>On October 31, 2008, we closed the sale of our Norwegian outside-operated properties and undeveloped offshore acreage for proceeds of $320 million, before post-closing adjustments. After post-closing adjustments are finalized, the pretax gain is expected to be between $250 and $275 million. As of September 30, 2008, operating assets and liabilities with a net carrying value of $36 million were classified as held for sale, with $3 million reported in Other current assets, $94 million in Other noncurrent assets and $61 million in Deferred credits and other liabilities on the consolidated balance sheet.</FONT></DIV></body></html> 10-Q 2008-09-30 false 0000101778 Yes Yes --12-31 Large Accelerated Filer Yes EX-100.SCH 3 mro-20080930.xsd EX 100 SCH: VOLUNTARY FILING OF XBRL TAGGED FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2008 06 - Notes to Consolidated Financial Statements (Unaudited) link:presentationLink link:calculationLink link:definitionLink 03 - Consolidated Balance Sheets (Unaudited) link:presentationLink link:calculationLink link:definitionLink 05 - Consolidated Statements of Cash Flows (Unaudited) link:presentationLink link:calculationLink link:definitionLink 02 - Consolidated Statements of Income (Unaudited) link:presentationLink link:calculationLink link:definitionLink 04 - Consolidated Balance Sheets Parentheticals (Unaudited) link:presentationLink link:calculationLink link:definitionLink 01 - Document and Entity Information link:presentationLink link:calculationLink link:definitionLink EX-100.CAL 4 mro-20080930_cal.xml EX 100 CAL: VOLUNTARY FILING OF XBRL TAGGED FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2008 EX-100.LAB 5 mro-20080930_lab.xml EX 100 LAB: VOLUNTARY FILING OF XBRL TAGGED FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2008 Accounts payable Accounts payable, Total Receivables, less allowance for doubtful accounts Receivables, less allowance for doubtful accounts Finite-lived intangible assets, accumulated amortization Accumulated other comprehensive loss Accumulated depreciation, depletion and amortization, beginning balance Accumulated depreciation, depletion and amortization Accumulated depreciation, depletion and amortization, Total Accumulated depreciation, depletion and amortization, ending balance Acquisitions, total Acquisitions Acquisitions Additional paid-in capital Additional paid-in capital, ending balance Additional paid-in capital, total Additional paid-in capital, beginning balance Changes in the fair value of U.K. natural gas contracts Changes in the fair value of U.K. natural gas contracts Allowance for doubtful accounts Allowance for doubtful accounts, beginning balance Allowance for doubtful accounts, ending balance Payables to related parties Payables to related parties, Total Asset retirement obligations Asset retirement obligations, Total Consolidated Balance Sheets Cash and cash equivalents Cash and cash equivalents, total Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Deconsolidation of Equatorial Guinea LNG Holdings Limited Deconsolidation of Equatorial Guinea LNG Holdings Limited Changes in current accounts payable and accrued expenses, total Changes in current accounts payable and accrued expenses Changes in inventories, total Changes in inventories Changes in inventories Changes in current receivables Changes in current receivables, total Changes in current receivables Short-term debt, net 15. Commitments and Contingencies Common stock, shares authorized Common stock, shares outstanding Common stock, shares outstanding, beginning balance Common stock, shares outstanding, ending balance Common stock, value Common stock, value, ending balance Common stock, value, beginning balance Common stock, value, total Purchases from related parties Cost of revenues (excludes items below) Cost of revenues (excludes items below), Total Current liabilities: Total current liabilities Current liabilities Long-term debt due within one year, Total Long-term debt due within one year Long-term debt Long-term debt, Total 12. Debt Debt issuance costs Debt issuance costs Defined benefit postretirement plan obligations Deferred income taxes, total Deferred income taxes Depreciation, depletion and amortization Depreciation, depletion and amortization, total 4. Acquisition Net income per share, diluted Net income per share, diluted, Total 6. Defined Benefit Postretirement Plans Income from equity method investments Income from equity method investments, Total Effect of exchange rate changes on cash Effect of exchange rate changes on cash, total Payroll and benefits payable, Total Payroll and benefits payable Equity method investments Consumer excise taxes Exploratory dry well costs and unproved property impairments Exploration expenses Net gain on disposal of assets, Total Net gain on disposal of assets Net gain on disposal of assets Gain on foreign currency derivative instruments Loss on early extinguishment of debt Loss on early extinguishment of debt, total Loss on early extinguishment of debt Selling, general and administrative expenses, Total Selling, general and administrative expenses Income from continuing operations Income from continuing operations, per diluted share Income from continuing operations, per basic share Income from continuing operations, per basic share, total Income from continuing operations Income from continuing operations, Total Discontinued operations, per diluted share Discontinued operations, per diluted share, Total Discontinued operations, per basic share Discontinued operations, per basic share, Total Income from discontinued operations Income from discontinued operations, total Income from discontinued operations 7. Income Taxes Accrued taxes Intangible assets, less accumulated amortization Intangible assets, less accumulated amortization Accrued interest Inventories Inventories, Total Liabilities Liabilities and Stockholders' Equity Total liabilities Minority interests in loss of Equatorial Guinea LNG Holdings Limited Minority interests in loss of Equatorial Guinea LNG Holdings Limited, total Minority interests in loss of Equatorial Guinea LNG Holdings Limited Minority interests in Equatorial Guinea LNG Holdings Limited Minority interests in Equatorial Guinea LNG Holdings Limited, Total Minority interests in Equatorial Guinea LNG Holdings Limited, beginning balance Minority interests in Equatorial Guinea LNG Holdings Limited, ending balance Net cash provided by (used in) financing activities Net cash provided by (used in) financing activities Net cash provided by (used in) financing activities, total Net cash used in investing activities Net cash used in investing activities Net cash used in investing activities, total Net cash provided by operating activities Net cash provided by operating activities, total Net cash provided by operating activities Net income Net income, total Net increase (decrease) in cash and cash equivalents Net increase (decrease) in cash and cash equivalents, total 2. New Accounting Standards Other taxes Sales and other operating revenues (including consumer excise taxes) Sales and other operating revenues (including consumer excise taxes), Total Income from operations Income from operations Income from operations, Total 1. Basis of Presentation Other current assets Payments for other investing activities Payments for other investing activities Dividends paid, total Dividends paid Dividends paid Pension and other postretirement benefits, net Pension and other postretirement benefits 6. Defined Benefit Postretirement Plans Preferred stock, shares authorized Preferred stock, shares issued Issuance of common stock Contributions from minority shareholders of Equatorial Guinea LNG Holdings Limited Borrowings, total Borrowings Disposal of assets, total Disposal of assets Property, plant and equipment, less accumulated depreciation, depletion and amortization Property, plant and equipment, less accumulated depreciation, depletion and amortization Property, plant and equipment, less accumulated depreciation, depletion and amortization, ending balance Property, plant and equipment, less accumulated depreciation, depletion and amortization, beginning balance Investments - loans and advances Investments - loans and advances Capital expenditures Capital expenditures, total Capital expenditures Receivables from related parties, Total Receivables from related parties Debt repayments Debt repayments, total Debt repayments Purchases of common stock Purchases of common stock Retained earnings Retained earnings, Total Retained earnings, ending balance Retained earnings, beginning balance Sales to related parties 9. Inventories 19. Subsequent Events 5. Segment Information Short-term debt Consolidated Statements of Cash Flows Stockholders' Equity 14. Stockholders' Equity Current assets: Current assets Total current assets 10. Property, Plant and Equipment Total assets Deferred credits and other liabilities, total Deferred credits and other liabilities, noncurrent Deferred income taxes, current Deferred income taxes, noncurrent Equity method investments, net Equity method investments, net Assets Net income 11. Fair Value Measurements Held in treasury, at cost Held in treasury, at cost, beginning balance Held in treasury, at cost, ending balance Held in treasury, at cost 16. Supplemental Cash Flow Information Net income per share, basic, total Net income per share, basic Excess tax benefits from stock-based compensation arrangements Preferred stock, no par value Common stock, shares issued Common stock, shares issued, total Other noncurrent assets Other noncurrent assets, Total Preferred stock, shares outstanding Preferred stock, shares outstanding, ending balance Preferred stock, shares outstanding, beginning balance Basic: Diluted: Per Share Data Common stock, par value per share Held in treasury, shares Held in treasury, shares, beginning balance Held in treasury, shares, ending balance Total stockholders' equity Stockholders' equity Stockholders' equity, beginning balance Stockholders' equity, ending balance Provision for income taxes, Total Provision for income taxes Preferred stock, value Other income Dividends Increase (decrease) in cash and cash equivalents Costs and expenses: Commitments and contingencies Amendment description Amendment flag Current fiscal year end date Document information Document period end date Document type Entity information Entity well-known seasoned issuer Entity voluntary filers Entity current reporting status Entity filer category Entity public float Entity registrant name Entity central index key Entity common stock, shares outstanding Receivables from United States Steel, Current Marathon and U.S. Steel separated on January 1, 2002. US Steel services long-term debt that is on Marathon's books. This receivable represents amounts due on that debt, primarily interest. Receivables from United States Steel, Noncurrent Marathon and U.S. Steel separated on January 1, 2002. US Steel services long-term debt that is on Marathon's books. This receivable represents amounts due on that debt, primarily interest. Payable to United States Steel, Noncurrent Marathon and U.S. Steel separated on January 1, 2002. US Steel services long-term debt that is on Marathon's books. This payable represents amounts related to the separation agreements. Common stock, securities exchangable, shares authorized Unlimited number of common shares of a wholly-owned subsidiary that can be sold or granted to shareholders (includes common shares that have been repurchased) and are exchangeable into the entity's common shares upon request of the shareholders. Common stock, securities exchangable, shares issued Total number of common shares of a wholly-owned subsidiary that have been sold or granted to shareholders (includes common shares that have been repurchased) and are exchangeable into the entity's common shares upon request of the shareholders. Shares issued includes shares outstanding and shares held in treasury. Common stock, securities exchangable, shares outstanding Total number of common shares of a wholly-owned subsidiary held by shareholders that are exchangeable into the entity's common shares upon request of the shareholders. May be all or portion of the number of the exchangable shares authorized. Common stock, securities exchangable Represents the caption on the face of the balance sheet to indicate that their are common shares of a wholly-owned subsidiary that are exchangeable into the entity's common shares upon request of the shareholders. Revenues and other income: Revenues and other income Total revenues and other income Total revenues and other income, including income from equity method investments. Costs and expenses Total costs and expenses Total costs and expenses other than income tax expense. Income from continuing operations before income taxes Income from continuing operations before income taxes Revenue less expensse before applying income taxes. Common stock, securities exchangable, no par value Per share face amount or stated value of common shares of a wholly-owned subsidiary exchangeable into the common stock; generally not indicative of the fair market value per share. All other cash provided (used) by operating activities, net The net cash outflow (inflow) from other operating activities. This element is used when there is not a more specific and appropriate element in the taxonomy. Trusteed funds - withdrawals Represents amounts received in the period, as reimbursement of project costs incurred, out of tax exempt bond proceeds held in trust. Investments - repayments of loans and return of capital The cash inflow associated with the repayments of loans or dividends paid by equity method investees, which are investments in joint ventures and entities in which the entity has an equity ownership interest normally of 20 to 50 percent and exercises significant influence. Notes to Consolidated Financial Statements 3. Income Per Common Share This element may be used to capture the complete disclosure pertaining to an entity's earnings per share. Net interest and financing income costs Includes interest expense, offset by credits for capitalized interest, foreign currency gains/losses, interest income and gain/loss in interest rate swaps. 18. Evaluation of Separation of Business Describes a disclosed announcement on the potential separation of the corporation into two separate entities. Consolidated Balance Sheets (Parenthetical) 8. Comprehensive Income This label may include the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains and losses on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains and losses on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are c onsolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains and losses on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain or loss and net prior service cost or credit for pension plans and other postretirement benefit plans. 13. Stock-Based Compensation Plans Disclosure of compensation-related costs for share-based compensation which may include disclosure of policies, compensation plan details, allocation of stock compensation, incentive distributions, share-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. 17. Accounting Standards Not Yet Adopted This element may be used to capture the complete disclosure for new accounting pronouncements that has been issued but not yet adopted. EX-100.PRE 6 mro-20080930_pre.xml EX 100 PRE: VOLUNTARY FILING OF XBRL TAGGED FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2008
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