NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER (Tables)

12 Months Ended

Dec. 31, 2019

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER

Schedule of Inventories

Inventories as of December 31, 2019 and 2018 consisted of the following:

	2019		2018
	(in millions)
Materials and supplies	$	64	$	65
Finished goods	3		4
Total	$	67	$	69

Summary of the activity of the asset retirement obligation

The following table summarizes the activity of our ARO, of which $489 million and $402 million are included in other long-term liabilities, with the remaining portion in accrued liabilities at December 31, 2019 and 2018, respectively.

	For the years ended December 31,
	2019			2018
	(in millions)
Beginning balance	$	433		$	422
Liabilities incurred, capitalized to PP&E	(5		)	4
Liabilities settled and paid	(26		)	(15		)
Accretion expense	36			27
Acquisitions, capitalized to PP&E(a)	—			8
Dispositions, reduction to PP&E	(10		)	(1		)
Other	4			(1		)
Revisions	85			(11		)
Ending balance	$	517		$	433

(a)

For the year ended December 31, 2018, amount includes $7 million related to the Elk Hills transaction and $1 million related to other acquisitions.

Schedule of other current assets, net

Other current assets, net as of December 31, 2019 and 2018 consisted of the following:

	2019		2018
	(in millions)
Net amounts due from joint interest partners(a)	70		68
Derivative assets	39		168
Prepaid expenses	19		16
Other	2		3
Other current assets, net	$	130	$	255

(a) Included in the 2019 and 2018 net amounts due from joint interest partners are allowances for doubtful accounts of $22 million and $31 million, respectively.

Schedule of accrued liabilities

Accrued liabilities as of December 31, 2019 and 2018 consisted of the following:

	2019		2018
	(in millions)
Accrued employee-related costs	$	116	$	109
Accrued taxes other than on income	57		38
Asset retirement obligation	28		31
Accrued interest	13		15
Lease liability	28		—
Other	71		24
Accrued liabilities	$	313	$	217