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OTHER LONG-TERM LIABILITIES (Tables)
 12 Months Ended
Dec. 31, 2018
Subclassifications of assets, liabilities and equities [abstract]  
Disclosure of other long-term liabilities
 
 
2018

 
2017

Asset retirement obligations
 
$
3,886

 
$
4,327

Share-based compensation
 
124

 
414

Risk management (note 19)
 
17

 
103

Deferred purchase consideration (1) (2)
 
118

 
469

Other
 
80

 
96

 
 
4,225

 
5,409

Less: current portion
 
335

 
1,012

 
 
$
3,890

 
$
4,397

(1) Includes $118 million of deferred purchase consideration at December 31, 2018, payable in annual installments of $25 million over the next five years.
(2) Includes $469 million (US$375 million) of deferred purchase consideration at December 31, 2017, paid to Marathon in March 2018.
Summary of asset retirement obligations
Reconciliations of the discounted asset retirement obligations were as follows:
 
 
2018

 
2017

 
2016

Balance – beginning of year
 
$
4,327

 
$
3,243

 
$
2,950

Liabilities incurred
 
19

 
12

 
3

Liabilities acquired, net
 
6

 
784

 
30

Liabilities settled
 
(290
)
 
(274
)
 
(267
)
Asset retirement obligation accretion
 
186

 
164

 
142

Revision of cost, inflation rates and timing estimates
 
(111
)
 
(40
)
 
(68
)
Change in discount rate
 
(334
)
 
509

 
493

Foreign exchange adjustments
 
83

 
(71
)
 
(40
)
Balance – end of year
 
3,886

 
4,327

 
3,243

Less: current portion
 
186

 
92

 
95

 
 
$
3,700

 
$
4,235

 
$
3,148

Segmented Asset Retirement Obligations
 
 
2018

 
2017

Exploration and Production
 
 
 
 
North America
 
$
1,665

 
$
1,840

North Sea
 
707

 
755

Offshore Africa
 
134

 
245

Oil Sands Mining and Upgrading
 
1,379

 
1,486

Midstream
 
1

 
1

 
 
$
3,886

 
$
4,327
Summary of share-based compensation liability
 
 
2018

 
2017

 
2016

Balance – beginning of year
 
$
414

 
$
426

 
$
128

Share-based compensation (recovery) expense
 
(146
)
 
134

 
355

Cash payment for stock options surrendered
 
(5
)
 
(6
)
 
(7
)
Transferred to common shares
 
(120
)
 
(154
)
 
(117
)
(Recovered from) charged to Oil Sands Mining and Upgrading, net
 
(19
)
 
14

 
67

Balance – end of year
 
124

 
414

 
426

Less: current portion
 
92

 
348

 
368

 
 
$
32

 
$
66

 
$
58
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:
 
 
2018

 
2017

 
2016

Fair value
 
$
3.33

 
$
11.82

 
$
11.41

Share price
 
$
32.94

 
$
44.92

 
$
42.79

Expected volatility
 
27.4%

 
27.1%

 
30.7%

Expected dividend yield
 
4.1%

 
2.5%

 
2.3%

Risk free interest rate
 
1.9%

 
1.8%

 
0.9%

Expected forfeiture rate
 
4.2%

 
5.0%

 
5.0%

Expected stock option life (1)
 
4.4 years

 
4.5 years

 
4.6 years

(1)
At original time of grant.