Asset Retirement Obligations

6 Months Ended

Jun. 30, 2011

Asset Retirement Obligations

Asset Retirement Obligations

8.     Asset Retirement Obligations

The schedule below summarizes changes in Devon's asset retirement obligations.

	Six Months Ended June 30,
	2011	2010
	(In millions)
Asset retirement obligations as of beginning of period	$         1,497	$         1,513
Liabilities incurred	23	25
Liabilities settled	(39)	(71)
Revision of estimated obligation	16	194
Liabilities assumed by others	—	(256)
Accretion expense on discounted obligation	46	50
Foreign currency translation adjustment	28	(14)
Asset retirement obligations as of end of period	1,571	1,441
Less current portion	72	95
Asset retirement obligations, long-term	$         1,499	$         1,346

During the first six months of 2010, Devon recognized a revision to its asset retirement obligations totaling $194 million. The increase was primarily due to an overall increase in abandonment cost estimates and a decrease in the discount rate used to calculate the present value of the obligations.

During the first six months of 2010, Devon reduced its asset retirement obligations by $256 million for those obligations that were assumed by purchasers of Devon's Gulf of Mexico oil and gas properties in 2010.