Basis of Presentation (Tables)

9 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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



	Three Months Ended September 30,						Nine Months Ended September 30,
(millions)	2016			2015			2016			2015
Production Expense
Lease Operating Expense	$	131		$	133		$	412		$	419
Production and Ad Valorem Taxes	30			28			73			89
Transportation and Gathering Expense ⁽¹⁾	113			86			335			207
Total	$	274		$	247		$	820		$	715
Other Operating (Income) Expense, Net
(Gain) Loss on Asset Due to Terminated Contract ⁽²⁾	$	(3	)	$	—		$	44		$	—
Marketing and Processing Expense, Net ⁽³⁾	20			10			58			25
Loss on Divestitures	—			—			23			—
Corporate Restructuring Expense	—			21			—			39
Purchase Price Allocation Adjustment ⁽⁴⁾	—			—			(25		)	—
Gain on Extinguishment of Debt ⁽⁵⁾	—			—			(80		)	—
Asset Impairments	—			—			—			43
Inventory Adjustment ⁽⁶⁾	14			—			14			—
Building Exit Cost	4			18			8			18
Rosetta Merger Expenses	—			71			—			73
Pension Plan Expense	—			67			—			88
Stacked Drilling Rig Expense	3			13			8			20
Other, Net	7			(12		)	16			4
Total	$	45		$	188		$	66		$	310
Other Non-Operating Expense (Income), Net
Deferred Compensation Expense (Income) ⁽⁷⁾	$	2		$	(13	)	$	7		$	(19	)
Other (Income) Expense, Net	(3		)	1			(4		)	(1		)
Total	$	(1	)	$	(12	)	$	3		$	(20	)

⁽¹⁾

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. Prior year amounts of $18 million and $37 million for the three and nine months ended September 30, 2015 have been reclassified to conform to the current presentation.


⁽²⁾	Amount relates to the termination of a rig contract offshore Falkland Islands as a result of a supplier's non-performance. See Note 9. Capitalized Exploratory Well Costs and Undeveloped Leasehold Costs and Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Executive Overview - Exploration Program Update.


⁽³⁾	For the three and nine months ended September 30, 2016, amount includes $12 million and $39 million, respectively, of expense due to unutilized firm transportation and shortfalls in delivering or transporting minimum volumes under certain commitments.

Prior year amounts of $6 million and $15 million for the three and nine months ended September 30, 2015, were previously presented within production expense. These amounts have been reclassified to conform to the current presentation.


⁽⁴⁾	Amount relates to an adjustment recorded to the purchase price allocation related to the Rosetta Merger. See Note 5. Rosetta Merger.


⁽⁵⁾	Amount relates to the tendering of senior notes assumed in the Rosetta Merger. See Note 7. Debt.


⁽⁶⁾	Amount relates to an adjustment of inventory to its net realizable value.


⁽⁷⁾	Amounts represent decreases (increases) 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)	September 30, 2016			December 31, 2015
Accounts Receivable, Net
Commodity Sales	$	317		$	298
Joint Interest Billings	66			20
Proceeds Receivable ⁽¹⁾	40			—
Other	86			151
Allowance for Doubtful Accounts	(23		)	(19		)
Total	$	486		$	450
Other Current Assets
Inventories, Materials and Supplies	$	75		$	92
Inventories, Crude Oil	25			23
Assets Held for Sale⁽²⁾	214			67
Prepaid Expenses and Other Current Assets	38			34
Total	$	352		$	216
Other Noncurrent Assets
Investments in Unconsolidated Subsidiaries	$	460		$	453
Mutual Fund Investments	83			90
Commodity Derivative Assets	—			10
Other Assets	44			67
Total	$	587		$	620
Other Current Liabilities
Production and Ad Valorem Taxes	$	121		$	166
Commodity Derivative Liabilities	27			—
Income Taxes Payable	168			86
Asset Retirement Obligations	128			128
Interest Payable	93			83
Current Portion of Capital Lease Obligations	61			53
Other	144			161
Total	$	742		$	677
Other Noncurrent Liabilities
Deferred Compensation Liabilities	$	232		$	217
Asset Retirement Obligations	820			861
Production and Ad Valorem Taxes	35			68
Commodity Derivative Liabilities	8			—
Other	44			73
Total	$	1,139		$	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⁾	Assets held for sale at September 30, 2016 primarily include $127 million relating to our 3% working interest in the Tamar project, offshore Israel, and certain producing and undeveloped assets in the DJ Basin and Eagle Ford Shale, onshore US. Assets held for sale at December 31, 2015 include the Karish and Tanin natural gas discoveries, offshore Israel. See Note 4. Divestitures