Impairments of Fixed Assets and Other

We review our long-lived assets, other than our natural gas and oil properties which are subject to quarterly full cost ceiling tests, 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 by asset class and other charges for the Current Quarter, the Prior Quarter, the Current Period and the Prior Period is as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
	($ in millions)
Natural gas compressors	$	11	$	—	$	11	$	—
Gathering systems and treating plants	—		21		10		22
Oilfield services equipment	—		24		23		27
Buildings and land	4		8		9		247
Other	—		32		22		47
Total impairments of fixed assets and other	$	15	$	85	$	75	$	343

Natural Gas Compressors. In the Current Quarter, we recognized an impairment loss of $11 million related to certain of our compressors. The compressors are included in our marketing, gathering and compression operating segment.

Gathering Systems and Treating Plants. In the Current Period, we recognized an impairment loss of $10 million related to certain gathering systems and treating plants. In the Prior Quarter, we recognized approximately $18 million of impairment losses on certain of our gathering systems. The gathering systems and treating plants are included in our marketing, gathering and compression operating segment.

Oilfield Services Equipment. In the Current Period, we purchased 31 leased rigs and equipment from various lessors for an aggregate purchase price of $140 million. In connection with these purchases, we paid $8 million in early lease termination costs, which are included in impairments of fixed assets and other in the condensed consolidated statement of operations. We recognized an impairment loss of approximately $15 million of leasehold improvements associated with these transactions. In the Prior Quarter, we recognized an impairment loss of $24 million on eight owned drilling rigs. The drilling rigs and equipment were included in our former oilfield services operating segment.

Buildings and Land. In the Prior Period, we determined we would sell certain of our buildings and land (other than our core campus) in the Oklahoma City area. We recognized an impairment loss of $166 million during the Prior Period 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 noncore buildings and land that we own in the Oklahoma City area for recoverability. As a result of this test, we recognized an impairment loss of $44 million on these assets in the Prior Period. Due to a decrease in the estimated market prices of certain property classified as held for sale in the Fort Worth area, we recognized an additional impairment loss of $31 million in the Prior Period. The impaired buildings and land are included in our other segment.

Other. Under the terms of our joint venture agreements (see Note 10), we are required to extend, renew or replace certain expiring joint leasehold, at our cost, to ensure that the net acreage is maintained in certain designated areas. In the Current Period, we revised our estimate of our net acreage shortfall as of December 31, 2012 under the terms of our Barnett Shale joint venture agreement with Total and recorded an additional $22 million charge. See Note 5 for additional discussion regarding our net acreage maintenance commitments. In the Prior Quarter, we terminated a gas gathering agreement and recorded a charge of $26 million within impairment of fixed assets and other in the condensed consolidated statement of operations.

Nonrecurring Fair Value Measurements. Fair value measurements for the impairments discussed above were based on recent sales information for comparable assets. As the fair value was estimated using the market approach based on recent prices from orderly sales transactions for comparable assets between market participants, the values were classified as Level 2 in the fair value hierarchy. Fair value measurements of the buildings and land discussed above were based on prices from orderly sales transactions for comparable properties between market participants, purchase offers we received from third parties and, in certain cases, discounted cash flows. As some inputs used were not observable in the market, these values were classified as Level 3 in the fair value hierarchy.