Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The components of the income tax provision (benefit) for each of the periods presented below are as follows:

	Years Ended December 31,
	2012			2011		2010
	($ in millions)
Current	$	47		$	13	$	—
Deferred	(427		)	1,110		1,110
Total	$	(380	)	$	1,123	$	1,110

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The effective income tax expense (benefit) differed from the computed "expected" federal income tax expense on earnings before income taxes for the following reasons:

	Years Ended December 31,
	2012			2011		2010
	($ in millions)
Income tax expense (benefit) at the federal statutory rate (35%)	$	(341	)	$	1,008	$	1,009
State income taxes (net of federal income tax benefit)	(38		)	74		78
Other	(1		)	41		23
Total	$	(380	)	$	1,123	$	1,110

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Deferred income taxes are provided to reflect temporary differences in the basis of net assets for income tax and financial reporting purposes. The tax-effected temporary differences and tax loss carryforwards which comprise deferred taxes are as follows:

	Years Ended December 31,
	2012			2011
	($ in millions)
Deferred tax liabilities:
Natural gas and oil properties	$	(1,999	)	$	(2,883	)
Other property and equipment	(436		)	(634		)
Investments	—			(56		)
Volumetric production payments	(1,432		)	(1,453		)
Contingent convertible debt	(416		)	(396		)
Deferred tax liabilities	(4,283		)	(5,422		)
Deferred tax assets:
Net operating loss carryforwards	414			1,198
Derivative instruments	172			395
Asset retirement obligations	142			123
Investments	106			—
Deferred stock compensation	47			62
Accrued liabilities	90			82
Noncontrolling interest liabilities	178			114
Alternative minimum tax credits	225			257
State statutory depletion	137			121
Other	55			(29		)
Deferred tax assets	1,566			2,323
Net deferred tax asset (liability)	(2,717		)	(3,099		)
Other non-current tax liabilities	—			(246		)
Total deferred tax liabilities	$	(2,717	)	$	(3,345	)
Reflected in accompanying balance sheets as:
Current deferred income tax asset	$	90		$	139
Non-current deferred income tax liability	(2,807		)	(3,484		)
Total	$	(2,717	)	$	(3,345	)

Summary of Operating Loss Carryforwards [Table Text Block]

The following table summarizes our NOLs as of December 31, 2012 and any related limitations:

	Total		Limited		Annual Limitation
	($ in millions)
Net operating loss	$	1,096	$	64	$	15
AMT net operating loss	$	51	$	51	$	15

Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block]

A reconciliation of the beginning and ending balances of unrecognized tax benefits is as follows:

	2012		2011		2010
	($ in millions)
Unrecognized tax benefits at beginning of period	$	369	$	34	$	231
Additions based on tax positions related to the current year	134		135		—
Additions to tax positions of prior years	96		200		(197		)
Settlements	—		—		—
Unrecognized tax benefits at end of period	$	599	$	369	$	34

Chesapeake's federal and state income tax returns are routinely audited by federal and state fiscal authorities. The Internal Revenue Service (IRS) is currently auditing our federal income tax returns for 2007 through 2011.