SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2017

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Summary of the activity of capitalized exploratory well costs for continuing operations

in millions	2017		2016		2015
Balance — Beginning of Year	$	56	$	76	$	141
Additions to capitalized exploratory well costs pending the determination of proved reserves	201		29		88
Reclassifications to property, plant and equipment based on the determination of proved reserves	(128)		(28)		(78)
Capitalized exploratory well costs charged to expense	(21)		(21)		(75)
Balance — End of Year	$	108	$	56	$	76

Schedule of impairments and related charges

For the years ended December 31, (in millions)	2017			2016			2015
OIL AND GAS
United States
Impairments and related charges of exiting operations	$		—	$		(44)	$		1,862	(a)
Impairments related to decline in commodity prices and changes in future development plans	397			15			1,428
Rig termination charges	—			—			192
Other asset impairment related charges	—			5			204
Latin America
Impairments related to decline in commodity prices and other	4			9			559
Middle East and North Africa
Impairments of exiting operations	—			61			1,658
Impairments related to decline in commodity prices	—			—			2,833
CHEMICAL
Impairments of assets	—			—			121
MIDSTREAM AND MARKETING
Century gas processing plant	—			—			814
Other asset impairment related charges	120			160			216
CORPORATE
Other-than-temporary impairment of investment in California Resources	—			78			227
Severance, spin-off and allowance for doubtful accounts	—			541			125
	$	521		$	825		$	10,239

(a) A portion of the 2015 charges are reported in the Midstream and Marketing segment.

Summary of the activity of the asset retirement obligation

For the years ended December 31, (in millions)	2017		2016
Beginning balance	$	1,369	$	1,124
Liabilities incurred – capitalized to PP&E	46		46
Liabilities settled and paid	(39)		(38)
Accretion expense	67		59
Acquisitions, dispositions and other – changes in PP&E	(136)		11
Revisions to estimated cash flows – changes in PP&E	5		167
Ending balance	$	1,312	$	1,369