Gains (Losses) on Sales and Impairments of Fixed Assets and Other Text Block (Notes)

12 Months Ended

Dec. 31, 2012

Gains (Losses) on Sales and Impairments of Fixed Assets and Other [Abstract]

Gains (Losses) on Sales and Impairments of Fixed Assets and Other [Text Block]

Net Gains on Sales of Fixed Assets and Impairments of Fixed Assets and Other

Net Gains on Sales of Fixed Assets

For assets outside of our full cost pool, the costs of assets retired or otherwise disposed of and the applicable accumulated depreciation are removed from accounts, and the resulting gain or loss is reflected in operating costs. A summary of our gains or losses by asset class for the years ended December 31, 2012, 2011 and 2010 is as follows:

	Years Ended December 31,
	2012			2011			2010
	($ in millions)
Gathering systems and treating plants	$	286		$	440		$	139
Drilling rigs and equipment	(10		)	(1		)	(1		)
Buildings and land	(7		)	(2		)	(3		)
Other	(2		)	—			2
Total net gains on sales	$	267		$	437		$	137

The net gains on sales of gathering systems and treating plants were primarily from the sale of our midstream subsidiary CMO to ACMP in 2012, the sale of our midstream subsidiary AMS to ACMP in 2011 and the sale of our Springridge gas gathering system to ACMP in 2010. See Note 11 for further discussion of these transactions.

Impairments of Fixed Assets and Other

We test our long-lived assets other than natural gas and oil properties for recoverability whenever events or changes in circumstances indicate that carrying amounts may not be recoverable and recognize an impairment loss if the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. In 2012, 2011 and 2010, we determined that certain of our property, plant and equipment were being carried at values that were not recoverable and in excess of fair value. A summary of impairments by asset class for the years ended December 31, 2012, 2011 and 2010 is as follows:

	Years Ended December 31,
	2012		2011		2010
	($ in millions)
Buildings and land	$	248	$	3	$	—
Drilling rigs and equipment	60		—		—
Gathering systems and treating plants	6		43		21
Other	26		—		—
Total impairments	$	340	$	46	$	21

Buildings and Land. In 2012 and 2011, we recognized $248 million and $3 million of impairment losses, respectively, primarily associated with an office building and surface land located in our Barnett Shale operating area. Due to depressed natural gas prices during 2012 and a shift to a more liquids-focused drilling program, we have significantly reduced our Barnett Shale operations. The change in business climate related to the Barnett Shale required us to test these long-lived assets for recoverability in 2012. We have a purchase offer from a third party that we used to determine the fair value of the office building and measured the fair value of the surface land using prices from orderly sales transactions for comparable properties between market participants. The office building and surface land are included in our other operating segment.

Drilling Rigs and Equipment. As our strategic focus is shifting from a natural gas asset base to a more balanced natural gas and liquids asset base, and as our budgeted capital expenditures are being reduced, our active rig count has decreased significantly with a corresponding increase in the number of idle rigs we own or lease. In 2012, we negotiated the purchase of 25 rigs previously sold in our sale leaseback transactions described in Note 4 from various lessors for an aggregate price of $61 million, of which $25 million was deemed to be early lease termination costs and was recognized as impairments of fixed assets and other in the consolidated statement of operations.

In 2012, we recognized $26 million of impairment losses on certain of our owned drilling rigs due to the expectation that these particular drilling rigs would have insufficient cash flow to recover their carrying values in the business climate due to depressed natural gas prices. We estimated the fair value of the drilling rigs using prices that would be received to sell each rig in an orderly transaction between market participants. Also in 2012, we recognized $9 million of impairment losses primarily related to drill pipe and other equipment. The drilling rigs and equipment are included in our oilfield services operating segment.

Gathering Systems and Treating Plants. In 2012, 2011 and 2010, we recognized impairments of $6 million, $43 million and $21 million, respectively, related to certain of our midstream assets. The gathering systems and treating plants are included in our marketing, gathering and compression operating segment.

Other. In 2012, we recorded a $26 million charge related to the shortfall of our net acreage maintenance commitment with Total in the Barnett Shale. See Net Acreage Maintenance Commitments in Note 4 for further discussion.