Discontinued Operations

12 Months Ended

Dec. 31, 2015

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

3.  Discontinued Operations

The results of operations for our divested Marketing and Refining businesses included ownership of the energy trading partnership through February 2015, retail marketing through September 2014, terminals through December 2013, energy marketing through November 2013 and Port Reading refining activities through the date they were permanently shut down in February 2013, and have been reported as discontinued operations in the Statement of Consolidated Income for all periods presented.  

Sales and other operating revenues and Income from discontinued operations were as follows:

	2015			2014		2013
	(In millions)
Sales and other operating revenues	$	14		$	9,576	$	22,652
Income (loss) from discontinued operations before income taxes	$	(74	)	$	1,071	$	1,835
Current tax provision (benefit)		—			—		—
Deferred tax provision (benefit)		(26	)		389		649
Provision (benefit) for income taxes		(26	)		389		649
Income (loss) from discontinued operations, net of income taxes	$	(48	)	$	682	$	1,186
Less: Net income (loss) attributable to noncontrolling interests		—			57		(6	)
Income (loss) from discontinued operations attributable to Hess Corporation	$	(48	)	$	625	$	1,192

2015:In February 2015, we sold our interest in HETCO, which was subsequently renamed Hartree Partners, LP (Hartree).  Pursuant to the terms of the sale, Hartree was permitted to utilize our guarantees issued in favor of Hartree's existing counterparties until November 12, 2015, provided that new trades were for a period of one year or less, complied with certain credit requirements, and net exposures remained within value at risk limits previously applied by us.  The guarantees remain in effect until the qualifying trades outstanding at November 12, 2015 mature.  We have the right to seek reimbursement from Hartree and a separate Hartree credit support facility upon any counterparty draw on the applicable guarantee from us.  No draws on the guaranteed trades have occurred through December 31, 2015.  A liability of $10 million associated with the guarantee is included in Other accrued liabilities at December 31, 2015.  At December 31, 2014, HETCO assets totaling $1,035 million, consisting of accounts receivable and other long-lived assets, were reported in Other current assets, and liabilities totaling $797 million, which consisted primarily of accounts payable, were reported in Accrued Liabilities in the Consolidated Balance Sheet.

2014:  In September, we completed the sale of our retail business for cash proceeds of approximately $2.8 billion.  This transaction resulted in a pre-tax gain of $954 million ($602 million after income taxes) after deducting the net book value of assets, including $115 million of goodwill.  During the year, we recorded pre-tax gains of $275 million ($171 million after income taxes) relating to the liquidation of last-in, first-out (LIFO) inventories associated with the divested downstream operations. In addition, we recorded pre-tax charges totaling $308 million ($202 million after income taxes) for impairments, environmental matters, severance and exit related activities associated with the divestiture of downstream operations.  We also recognized a pre-tax charge of $115 million ($72 million after income taxes) related to the termination of lease contracts and the purchase of 180 retail gasoline stations in preparation for the sale of the retail operations.  In January, our retail business acquired our partners’ 56% interest in WilcoHess, a retail gasoline joint venture, for approximately $290 million and the settlement of liabilities.  In connection with this business combination, we recorded a pre-tax gain of $39 million ($24 million after income taxes) to remeasure the carrying value of our original 44% equity interest in WilcoHess to fair value, including recognition of goodwill in the amount of $115 million.  The assets and liabilities acquired from WilcoHess were included in the sale of the retail business in September 2014.

2013:  In December, we sold our U.S. East Coast terminal network, St. Lucia terminal and related businesses for cash proceeds of approximately $1.0 billion.  The transaction resulted in a pre-tax gain of $739 million ($531 million after income taxes).  In November, we sold our energy marketing business for cash proceeds of approximately $1.2 billion, which resulted in a pre-tax gain of $761 million ($464 million after income taxes). During the year we recognized pre-tax gains of $678 million ($414 million after income taxes) relating to the liquidation of LIFO inventories.  In addition, we recorded pre-tax charges totaling $523 million ($334 million after income taxes) for impairments, severance, Port Reading refinery shutdown costs, environmental matters, and exit related activities associated with the divestiture of downstream operations.