Discontinued Operations

6 Months Ended

Jun. 30, 2011

Discontinued Operations

Discontinued Operations

15.   Discontinued Operations

In May 2011, Devon completed the divestiture of its operations in Brazil. With the close of the Brazil transaction, Devon has substantially completed its planned offshore divestitures. In aggregate, Devon's U.S. and International offshore sales have generated total proceeds of $10 billion, or approximately $8 billion after-tax, assuming repatriation of a portion of the foreign proceeds under current U.S. tax law.

Revenues related to Devon's discontinued operations totaled $43 million in the first six months of 2011 and $222 million and $434 million in the second quarter and first six months of 2010, respectively. Devon did not have revenues related to its discontinued operations in the second quarter of 2011.

Earnings from discontinued operations in the second quarter and first six months of 2011 and 2010 were largely impacted by gains on Devon's International divestiture transactions. The following table presents the gains on the divestitures according to the quarters in which the divestitures closed in 2011 and 2010. The after-tax amounts in the table below exclude $744 million of income tax expense related to assumed repatriations discussed in Note 14.

	Second Quarter 2011		Third Quarter 2010		Second Quarter 2010
	Gross	After Taxes	Gross	After Taxes	Gross	After Taxes
	(In millions)
Brazil	$ 2,546	$ 2,546	$       —	$       —	$       —	$       —
Azerbaijan	—	—	1,543	1,524	—	—
China - Panyu	—	—	—	—	308	235
Other	—	—	(8)	(2)	—	—
Total	$ 2,546	$2,546	$ 1,535	$ 1,522	$    308	$    235

The following table presents the main classes of assets and liabilities associated with Devon's discontinued operations.

	June 30,	December 31,
	2011	2010
	(In millions)
Cash and cash equivalents	$                     —	$                  424
Accounts receivable	2	43
Other current assets	34	96
Current assets	$                     36	$                  563
Property and equipment, net	$                     92	$                  848
Other long-term assets	2	11
Total long-term assets	$                     94	$                  859
Accounts payable	$                       4	$                  260
Other current liabilities	39	45
Current liabilities	$                     43	$                  305
Long-term liabilities	$                       2	$                     26