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OTHER LONG-TERM LIABILITIES (Tables)
 12 Months Ended
Dec. 31, 2017
Subclassifications of assets, liabilities and equities [abstract]  
Disclosure of other long-term liabilities
 
 
2017

 
2016

Asset retirement obligations
 
$
4,327

 
$
3,243

Share-based compensation
 
414

 
426

Risk management (note 18)
 
103

 
—

Other (1)
 
565

 
17

 
 
5,409

 
3,686

Less: current portion
 
1,012

 
463

 
 
$
4,397

 
$
3,223

(1) Included in Other at December 31, 2017 is $469 million (US$375 million) of deferred purchase consideration payable to Marathon in March 2018.
Summary of asset retirement obligations
Reconciliations of the discounted asset retirement obligations were as follows:
 
 
2017

 
2016

 
2015

Balance – beginning of year
 
$
3,243

 
$
2,950

 
$
4,221

Liabilities incurred
 
12

 
3

 
7

Liabilities acquired, net
 
784

 
30

 
129

Liabilities settled
 
(274
)
 
(267
)
 
(370
)
Asset retirement obligation accretion
 
164

 
142

 
173

Revision of cost, inflation rates and timing estimates
 
(40
)
 
(68
)
 
(313
)
Change in discount rate
 
509

 
493

 
(1,150
)
Foreign exchange adjustments
 
(71
)
 
(40
)
 
253

Balance – end of year
 
4,327

 
3,243

 
2,950

Less: current portion
 
92

 
95

 
101

 
 
$
4,235

 
$
3,148

 
$
2,849

Segmented Asset Retirement Obligations
 
 
2017

 
2016

Exploration and Production
 
 
 
 
North America
 
$
1,840

 
$
1,444

North Sea
 
755

 
837

Offshore Africa
 
245

 
244

Oil Sands Mining and Upgrading
 
1,486

 
717

Midstream
 
1

 
1

 
 
$
4,327

 
$
3,243
Summary of share-based compensation liability
 
 
2017

 
2016

 
2015

Balance – beginning of year
 
$
426

 
$
128

 
$
203

Share-based compensation expense (recovery)
 
134

 
355

 
(46
)
Cash payment for stock options surrendered
 
(6
)
 
(7
)
 
(1
)
Transferred to common shares
 
(154
)
 
(117
)
 
(18
)
Charged to (recovered from) Oil Sands Mining and Upgrading, net
 
14

 
67

 
(10
)
Balance – end of year
 
414

 
426

 
128

Less: current portion
 
348

 
368

 
105

 
 
$
66

 
$
58

 
$
23
Disclosure of weighted average assumptions used
The fair value of stock options outstanding was estimated using the Black-Scholes valuation model with the following weighted average assumptions:
 
 
2017

 
2016

 
2015

Fair value
 
$
11.82

 
$
11.41

 
$
3.06

Share price
 
$
44.92

 
$
42.79

 
$
30.22

Expected volatility
 
27.1%

 
30.7%

 
28.6%

Expected dividend yield
 
2.5%

 
2.3%

 
3.0%

Risk free interest rate
 
1.8%

 
0.9%

 
0.6%

Expected forfeiture rate
 
5.0%

 
5.0%

 
4.8%

Expected stock option life (1)
 
4.5 years

 
4.6 years

 
4.5 years

(1)
At original time of grant.