Basis of Presentation (Tables)

3 Months Ended

Mar. 31, 2016

Statements of Operations Information Other statements of operations information is as follows:



	Three Months Ended March 31,
(millions)	2016			2015
Production Expense
Lease Operating Expense	$	161		$	157
Production and Ad Valorem Taxes ⁽¹⁾	4			32
Transportation and Gathering Expense ⁽²⁾	107			65
Total	$	272		$	254
Other Operating (Income) Expense, Net
Loss on Asset Due to Terminated Contract ⁽³⁾	$	42		$	—
Marketing and Processing Expense, Net ⁽⁴⁾	22			6
Asset Impairments ⁽⁵⁾	—			27
Gain on Extinguishment of Debt ⁽⁶⁾	(80		)	—
Other, Net	19			1
Total	$	3		$	34
Other Non-Operating (Income) Expense, Net
Deferred Compensation Expense ⁽⁷⁾	—			$	2
Other (Income) Expense, Net	(4		)	(1		)
Total	$	(4	)	$	1


⁽¹⁾	The reduction in production and ad valorem taxes is primarily due to the accrual of a $28 million onshore US severance tax receivable during first quarter 2016.

⁽²⁾

Certain of our revenue received from purchasers was historically presented with deductions for transportation, gathering, fractionation or processing costs. Beginning in 2016, we have changed our presentation of revenue to no longer include these expenses as deductions from revenue. These costs are now included within production expense and prior year amounts have been reclassified to conform to the current presentation.


⁽³⁾	Amount relates to the termination of a rig contract offshore Falkland Islands as a result of a supplier's non-performance. See Note 8. Capitalized Exploratory Well Costs and Undeveloped Leasehold and Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Executive Overview - Exploration Program Update.


⁽⁴⁾	In 2016, amount includes $16 million of expense due to unutilized firm transportation and shortfalls in delivering or transporting minimum volumes under certain commitments.


⁽⁵⁾	Impairments during 2015 were related to facility costs at South Raton (Deepwater Gulf of Mexico) and increases in expected field abandonment cost for the Noa and Pinnacles fields (Eastern Mediterranean).


⁽⁶⁾	Amount relates to the tendering of senior notes assumed in the Rosetta Merger. See Note 6. Debt.


⁽⁷⁾	Amounts represent decreases in the fair value of shares of our common stock held in a rabbi trust.

Balance Sheet Information Table

Balance Sheet Information Other balance sheet information is as follows:



(millions)	March 31, 2016			December 31, 2015
Accounts Receivable, Net
Commodity Sales	$	308		$	298
Joint Interest Billings	51			20
Proceeds Receivable ⁽¹⁾	40			—
Severance Tax Refund ⁽²⁾	28			—
Other	128			151
Allowance for Doubtful Accounts	(24		)	(19		)
Total	$	531		$	450
Other Current Assets
Inventories, Materials and Supplies	$	90		$	92
Inventories, Crude Oil	27			23
Assets Held for Sale⁽³⁾	—			67
Prepaid Expenses and Other Current Assets	37			34
Total	$	154		$	216
Other Noncurrent Assets
Investments in Unconsolidated Subsidiaries	$	461		$	453
Mutual Fund Investments	77			90
Commodity Derivative Assets	6			10
Other Assets	70			67
Total	$	614		$	620
Other Current Liabilities
Production and Ad Valorem Taxes	$	162		$	166
Income Taxes Payable	71			86
Asset Retirement Obligations	128			128
Interest Payable	94			83
Current Portion of Capital Lease Obligations	54			53
Other	92			161
Total	$	601		$	677
Other Noncurrent Liabilities
Deferred Compensation Liabilities	$	214		$	217
Asset Retirement Obligations	872			861
Production and Ad Valorem Taxes	76			68
Other	71			73
Total	$	1,233		$	1,219

⁽¹⁾Amount relates to proceeds to be received from our farm-out of 35% interest in Block 12 offshore Cyprus. See Note 4. Divestitures.

⁽²⁾Amount relates to the accrual of a $28 million onshore US severance tax receivable.

⁽³⁾Assets held for sale at December 31, 2015 included our Karish and Tanin natural gas discoveries, offshore Israel. The sale closed first quarter 2016. See Note 4. Divestitures.