Discontinued Operations

12 Months Ended

Dec. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note 19. Discontinued Operations

As discussed in Note 2, HighMount and the CAC business are classified and presented as discontinued operations.

The Consolidated Statements of Income include discontinued operations of HighMount as follows:

Year Ended December 31	2014
(In millions)
Revenues:
Other revenue, primarily operating	$	150
Total		150
Expenses:
Other operating expenses
Impairment of natural gas and oil properties		29
Operating		173
Interest		8
Total		210
Loss before income tax		(60	)
Income tax benefit		4
Results of discontinued operations, net of income tax		(56	)
Impairment loss, net of tax benefit of $62		(138	)
Loss from discontinued operations	$	(194	)

In 2014, HighMount recorded ceiling test impairment charges of $29 million ($19 million after tax) related to the carrying value of its natural gas and oil properties. The 2014 write-down was primarily attributable to insufficient reserve additions from exploration activities due to variability in well performance where HighMount was testing different horizontal target zones and hydraulic fracture designs. Had the effects of HighMount’s cash flow hedges not been considered in calculating the ceiling limitation, the impairment would have been $29 million ($18 million after tax) for the year ended December 31, 2014.

The Consolidated Statements of Income include discontinued operations of the CAC business as follows:

Year Ended December 31	2014
(In millions)
Revenues:
Net investment income	$	94
Investment gains		3
Total		97
Expenses:
Insurance claims and policyholders’ benefits		75
Other operating expenses		2
Total		77
Income before income tax		20
Income tax expense		(6	)
Results of discontinued operations, net of income tax		14
Loss on sale, net of tax benefit of $40		(211	)
Amounts attributable to noncontrolling interests		20
Loss from discontinued operations	$	(177	)