Supplemental Disclosures to the Consolidated Balance Sheets and Consolidated Statements of Cash Flows

“Other accrued liabilities” reported on the consolidated balance sheets include the following:



	December 31,
	2015		2014
	(in thousands)

Accrued interest	$	63,957	$	105,310
Accrued compensation	37,061		44,875
Asset retirement obligations	14,234		16,187
Other	4,341		1,364
	$	119,593	$	167,736

Supplemental disclosures to the consolidated statements of cash flows are presented below:



	Year Ended December 31,
	2015		2014			2013
	(in thousands)

Cash payments for interest, net of amounts capitalized	$	562,303	$	542,775		$	392,607
Cash payments for income taxes	$	643	$	—		$	14

Noncash investing and financing activities:
In connection with the acquisition of oil and natural gas properties and joint-venture funding, assets were acquired and liabilities were assumed as follow:
Fair value of assets acquired	$	—	$	2,679,547		$	5,726,681
Cash paid, net of cash acquired	—		(2,395,339		)	(109,350		)
Units issued in connection with the Berry acquisition	—		—			(2,781,888		)
Noncash gains on exchanges of properties	—		(85,493		)	—
Receivables from sellers	—		16,213			(93		)
Payables to sellers	—		(3,515		)	(6,854		)
Liabilities assumed	$	—	$	211,413		$	2,828,496
Accrued capital expenditures	$	81,656	$	240,331		$	334,542

Included in “acquisition of oil and natural gas properties and joint-venture funding, net of cash acquired” on the consolidated statements of cash flows for the years ended December 31, 2014, and December 31, 2013, is approximately $25 million and $170 million, respectively, paid by the Company towards the future funding commitment related to the joint-venture agreement entered into with Anadarko (see Note 2).

In November 2015, the Company issued $1.0 billion in aggregate principal amount of Second Lien Notes in exchange for approximately $2.0 billion in aggregate principal amount of certain of its outstanding senior notes (see Note 6).

On November 21, 2014, the Company, through two of its wholly owned subsidiaries, completed a noncash exchange of a portion of its Permian Basin properties to ExxonMobil in exchange for properties in California’s South Belridge Field. On August 15, 2014, the Company, through two of its wholly owned subsidiaries, completed a noncash exchange of a portion of its Permian Basin properties to Exxon XTO for properties in the Hugoton Basin.

For purposes of the consolidated statements of cash flows, the Company considers all highly liquid short-term investments with original maturities of three months or less to be cash equivalents. At December 31, 2015, “restricted cash” on the consolidated balance sheet includes $250 million that LINN Energy borrowed under the LINN Credit Facility and contributed to Berry in May 2015 to post with Berry’s lenders in connection with the reduction in the Berry Credit Facility’s borrowing base. Restricted cash also includes approximately $7 million and $6 million at December 31, 2015, and December 31, 2014, respectively, of cash deposited by the Company into a separate account designated for asset retirement obligations in accordance with contractual agreements.

The Company manages its working capital and cash requirements to borrow only as needed from its Credit Facilities. At December 31, 2015, and December 31, 2014, net outstanding checks of approximately $21 million and $95 million, respectively, were reclassified and included in “accounts payable and accrued expenses” on the consolidated balance sheets. Net outstanding checks are presented as cash flows from financing activities and included in “other” on the consolidated statements of cash flows.