Note O – Other Financial Information

GAIN FROM FOREIGN CURRENCY TRANSACTIONS – Net gains (losses) from foreign currency transactions, including the effects of foreign currency contracts, included in the Consolidated Statements of Operations were $(7.8) million in 2018, $(75.4) million in 2017 and $59.7 million in 2016.

Noncash operating working capital (increased) decreased during each of the three years ended December 31, 2018 as shown in the following table.



(Thousands of dollars)	2018		2017	2016
Accounts receivable	$	(89,070)	114,401	119,671
Inventories		12,216	26,883	(5,171)
Prepaid expenses		(17,341)	29,570	149,946
Deferred income tax assets		–	–	-
Accounts payable and accrued liabilities		(51,769)	(51,439)	(328,078)
Current income tax liabilities		(23,844)	16,999	24,943
Net (increase) decrease in noncash operating working capital	$	(169,808)	136,414	(38,689)
Supplementary disclosures (including discontinued operations):
Cash income taxes paid, net of refunds	$	129,296	68,076	6,707
Interest paid, net of amounts capitalized of $5,258 in 2018, $4,488 in 2017 and $4,322 in 2016		167,750	147,975	127,798

Noncash investing activities, related to continuing operations:
Asset retirement costs capitalized	$	353,436	8,509	13,690
Decrease (increase) in capital expenditure accrual		(42,467)	99,199	158,885

Note O – Other Financial Information (Contd.)

DEEPWATER RIG CONTRACT EXIT COSTS – At year-end 2015, the Company had two deepwater drilling rigs in the Gulf of Mexico under contract that were scheduled to expire in February and November 2016. In the face of low commodity prices, a significant reduction in the Company’s overall 2016 capital spending program and lack of interest by working interest partners and others to participate in drilling opportunities in 2016, the Company idled and stacked both rigs during the fourth quarter of 2015. The Company reported a pretax charge to Other expense in 2015 totaling $282.0 million that included both the costs incurred in 2015 when the rigs were idle and stacked together with the remaining day rate commitments due under the contracts in 2016. The contract originally scheduled to expire in November 2016 was terminated by the Company. The Company paid approximately $266.7 million related to these contracts in 2016 and reported a pretax benefit to Other expense in 2017 and 2016 of $6.1 million and $4.3 million, respectively, for the final settlement of the contracts at less than the recorded costs. These amounts are included in Other expense in the Consolidated Statements of Operations.