Divestitures

North Sea Properties During the first nine months of 2013, we closed two sales of non-operated working interest properties located in the UK and Netherlands sectors of the North Sea. The sales resulted in a $55 million gain based on net sales proceeds of $54 million for the fields. We also signed a purchase and sale agreement related to our southern North Sea properties in the UK, which is expected to close during the fourth quarter of 2013, and continue to market our remaining North Sea properties.

As of September 30, 2013, all the properties remaining in our North Sea geographical segment are included in assets held for sale in our consolidated balance sheet. Our consolidated statements of operations have been reclassified for all periods presented to reflect the operations of our North Sea geographical segment as discontinued. Upon reclassification as held for sale, depreciation, depletion, and amortization (DD&A) ceased. Our long-term debt is recorded at the consolidated level; therefore, no interest expense has been allocated to discontinued operations.

Summarized results of discontinued operations are as follows:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2013			2012		2013		2012
(millions)
Oil and Gas Sales	$	11		$	54	$	32	$	194
Income Before Income Taxes	7			38		10		117
Income Tax Expense	(3		)	3		7		50
Operating Income (Loss), Net of Tax	10			35		3		67
Gain on Sale, Net of Tax	—			22		55		22
Discontinued Operations, Net of Tax	$	10		$	57	$	58	$	89

Onshore US Properties During the first nine months of 2013, we closed the sales of certain crude oil and natural gas properties in Kansas, Oklahoma and the Gulf Coast areas. The information regarding the assets sold is as follows:



	Nine Months Ended September 30,
	2013
(millions)
Sales Proceeds	$	60
Less
Net Book Value of Assets Sold	(53		)
Goodwill Allocated to Assets Sold	(4		)
Asset Retirement Obligations Associated with Assets Sold	5
Other Closing Adjustments	4
Gain on Divestitures	$	12

During September 2013, we signed a purchase and sale agreement related to our non-core onshore US properties in New Mexico. These properties were reclassified as held for sale at September 30, 2013, which resulted in an impairment charge of $16 million. See Note 6. Fair Value Measurements and Disclosures.