Basis of Presentation (Tables)

3 Months Ended

Mar. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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



	Three Months Ended March 31,
(millions)	2017			2016
Production Expense
Lease Operating Expense	$	139		$	161
Production and Ad Valorem Taxes ⁽¹⁾	45			4
Gathering, Transportation and Processing Expense ⁽²⁾	119			111
Total	$	303		$	276
Other Operating (Income) Expense, Net
Marketing Expense ⁽³⁾	$	19		$	18
Gain on Extinguishment of Debt ⁽⁴⁾	—			(80		)
Loss on Asset Due to Terminated Contract ⁽⁵⁾	4			42
Other, Net	6			19
Total	$	29		$	(1	)
Other Non-Operating Expense (Income), Net
Other Income, Net	(1		)	(4		)
Total	$	(1	)	$	(4	)


⁽¹⁾	For first quarter 2017, total production expense increased as compared with 2016 due to higher production taxes associated with higher realized commodity prices, as well as a $28 million US onshore severance tax refund recorded in first quarter 2016 and a $7 million US onshore severance tax charge recorded in first quarter 2017.

⁽²⁾

Certain of our processing expense was historically presented as a component of other operating expense, net, in our consolidated statements of operations. Beginning in 2017, we have changed our presentation to reflect processing expense as a component of production expense. These costs are now included within gathering, transportation and processing expense. For the three month period ended March 31, 2017, these costs totaled $3 million, and the prior year amount of $4 million for the three months ended March 31, 2016 has been reclassified from marketing expense to conform to the current presentation.


⁽³⁾	Amounts represent expense for unutilized firm transportation and shortfalls in delivering or transporting minimum volumes under certain commitments.


⁽⁴⁾	Amount relates to the tendering of senior notes. See Note 6. Debt.


⁽⁵⁾	Amounts relate to the termination and final settlement of a rig contract for offshore Falkland Islands as a result of a supplier's non-performance.

Balance Sheet Information Table

Balance Sheet Information Other balance sheet information is as follows:



(millions)	March 31, 2017			December 31, 2016
Accounts Receivable, Net
Commodity Sales	$	362		$	403
Joint Interest Billings	119			106
Proceeds Receivable ⁽¹⁾	—			40
Other	63			86
Allowance for Doubtful Accounts	(21		)	(20		)
Total	$	523		$	615
Other Current Assets
Inventories, Materials and Supplies	$	71		$	71
Inventories, Crude Oil	21			18
Restricted Cash ⁽²⁾	—			30
Prepaid Expenses and Other Current Assets	43			41
Total	$	135		$	160
Other Noncurrent Assets
Investments in Unconsolidated Subsidiaries	$	407		$	400
Mutual Fund Investments	74			71
Other Assets	54			37
Total	$	535		$	508
Other Current Liabilities
Production and Ad Valorem Taxes	$	116		$	115
Commodity Derivative Liabilities	23			102
Income Taxes Payable	30			53
Asset Retirement Obligations	160			160
Interest Payable	93			76
Current Portion of Capital Lease Obligations	66			63
Other	110			173
Total	$	598		$	742
Other Noncurrent Liabilities
Deferred Compensation Liabilities	$	215		$	218
Asset Retirement Obligations	772			775
Production and Ad Valorem Taxes	61			47
Other	44			63
Total	$	1,092		$	1,103


⁽¹⁾	Balance at December 31, 2016 related to the farm-out of a 35% interest in Block 12 offshore Cyprus; proceeds were received in January 2017.