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New Accounting Standards
 12 Months Ended
Dec. 31, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
New Accounting Standards [Text Block]
Note 2—Changes in Accounting Principles
 
 
We
adopted
 
the provisions of FASB ASU No. 2016-02, “Leases,” (ASC Topic 842) and its amendments,
beginning
January 1, 2019
.
 
ASC Topic 842 establishes comprehensive accounting and financial reporting
requirements for leasing arrangements, supersedes
 
the existing requirements in FASB ASC Topic 840,
“Leases” (ASC Topic 840), and requires lessees to recognize substantially all lease assets
 
and lease liabilities
on the balance sheet.
 
The provisions of ASC Topic 842 also modify the definition of a lease and outline
requirements for recognition, measurement, presentation
 
and disclosure of leasing arrangements by both
lessees and lessors.
 
 
We
 
adopted ASC Topic 842 using the modified retrospective approach and elected
 
to utilize the Optional
Transition Method, which permits us to apply the provisions
 
of ASC Topic 842 to leasing arrangements
existing at or entered into after January 1, 2019, and
 
present in our financial statements comparative
 
periods
prior to January 1, 2019 under the historical requirements
 
of ASC Topic 840.
 
In addition, we elected to adopt
the package of optional transition-related practical
 
expedients, which among other things, allows
 
us to carry
forward certain historical conclusions reached
 
under ASC Topic 840 regarding lease identification,
classification, and the accounting treatment of
 
initial direct costs.
 
Furthermore, we elected not to record assets
and liabilities on our consolidated balance sheet for
 
new or existing lease arrangements with
 
terms of 12
months or less.
 
The primary impact of applying ASC Topic 842 is the initial recognition of $
998
 
million of lease liabilities and
corresponding right-of-use assets
 
on our consolidated balance sheet as of January
 
1, 2019, for leases classified
as operating leases under ASC Topic 840, as well as enhanced disclosure of
 
our leasing arrangements.
 
Our
accounting treatment for finance leases remains
 
unchanged.
 
In addition, there is no cumulative effect to
retained earnings or other components of equity recognized
 
as of January 1, 2019, and the adoption of ASC
Topic 842 did not impact the presentation of our consolidated income statement or
 
statement of cash flows.
 
See Note 17—Non-Mineral Leases for additional information
 
related to the adoption of ASC Topic 842.
 
We
adopted
 
the provisions of FASB ASU No. 2018-02, “Reclassification of Certain
 
Tax Effects from
Accumulated Other Comprehensive Income,” beginning
January 1, 2019
.
 
The ASU allows a reclassification
from accumulated other comprehensive income to
 
retained earnings for stranded tax effects resulting from
 
the
Tax Cuts and Jobs Act, eliminating the stranded tax effects.
 
The cumulative effect to our consolidated balance
sheet at January 1, 2019 for the adoption of ASU No.
 
2018-02 was as follows:
Millions of Dollars
December 31
ASU No. 2018-02
January 1
2018
Adjustments
2019
Equity
Accumulated other comprehensive loss
$
(6,063)
(40)
(6,103)
Retained earnings
34,010
40
34,050
For additional information
 
regarding
 
the impact of the adoption of ASU
 
No. 2018-02, see Note 20—Accumulated
 
Other Comprehensive
 
Loss.
Note 26—New Accounting Standards
 
 
In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial
 
Instruments”
(ASU No. 2016-13), which sets forth the current expected
 
credit loss model, a new forward-looking
impairment model for certain financial instruments based
 
on expected losses rather than incurred losses.
 
The
ASU is effective for interim and annual periods beginning
 
after December 15, 2019.
 
Entities are required to
adopt ASU No. 2016-13 using a modified retrospective
 
approach, subject to certain limited exceptions.
 
The
impact of adopting this ASU is not expected to be
 
material to our financial statements.