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. A summary of our impairments of fixed assets and other by asset class for the Current Quarter, the Prior Quarter, the Current Period and the Prior Period is as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	($ in millions)
Buildings and land	$	213	$	219	$	239	$	219
Drilling rigs and equipment	4		24		4		24
Other	14		—		15		—
Total impairments	$	231	$	243	$	258	$	243

Buildings and Land

In the Current Quarter, we determined we would sell certain of our buildings and land (other than our core campus) in the Oklahoma City area. These assets are being actively marketed and we believe it is probable that these assets will be sold over the next 12 months. As a result, these assets qualified as held for sale as of June 30, 2013. We recognized an impairment loss of $134 million during the Current Quarter on these assets for the difference between the carrying amount and fair value of the assets, less the anticipated costs to sell.

Given the impairment losses associated with these assets, we tested other non-core buildings and land that we own in the Oklahoma City area for recoverability in the Current Quarter. Our estimate of the future undiscounted cash flows for these assets was less than their carrying amounts, and we recognized an additional impairment loss of $44 million on these assets for the difference between the carrying amount and fair value of the assets. We measured the fair value of these assets based on prices from orderly sales transactions for comparable properties between market participants and, in certain cases, discounted cash flows. The buildings and land are included in our other operations segment.

Due to a decrease in the estimated market prices of certain surface land classified as held for sale in the Fort Worth area, in the Current Quarter we recognized an additional impairment loss of $29 million. See below for discussion of the impairment of Barnett surface land in the Prior Period. We measured the fair value of these assets based on recent prices from orderly sales transactions for comparable properties between market participants. The surface land is included in our other operations segment.

In the Current Period, we recognized an impairment loss of $26 million related to three office buildings in the Oklahoma City area. We received a purchase offer from a third party that we used to determine the fair value of the office buildings. As of June 30, 2013, the office buildings were classified as held for sale and included in our other operations segment. We anticipate selling the buildings in the 2013 second half.

In the Prior Period, we recognized $219 million of impairment losses associated with an office building and surface land located in our Barnett Shale operating area. Due to depressed natural gas prices, we initiated a significant reduction in our Barnett Shale operations. The change in business climate in the Barnett Shale required us to test these long-lived assets for recoverability in the Prior Period. We received 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 operations segment.

Drilling Rigs and Equipment

In the Prior Period, we recognized $15 million of impairment losses on five owned drilling rigs. A current expectation that the drilling rigs would have insufficient cash flow to recover carrying values and a change in the business climate due to depressed natural gas prices led to the testing of the carrying value recoverability. 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 the Prior Period, we recognized $9 million of impairment losses primarily related to drill pipe. The drilling rigs and equipment are included in our oilfield services operating segment.