v2.3.0.15
Discontinued Operations
9 Months Ended
Sep. 30, 2011
Discontinued Operations 
Discontinued Operations

15.   Discontinued Operations

          

In May 2011, Devon completed the divestiture of its operations in Brazil. With the close of the Brazil transaction, Devon has substantially completed its planned offshore divestitures. In aggregate, Devon's U.S. and International offshore sales have generated total proceeds of $10 billion, or approximately $8 billion after-tax, assuming repatriation of a substantial portion of the foreign proceeds under current U.S. tax law.

 

Revenues related to Devon's discontinued operations totaled $43 million in the first nine months of 2011 and $139 million and $573 million in the third quarter and first nine months of 2010, respectively. Devon did not have revenues related to its discontinued operations in the third quarter of 2011.

 

 

Earnings from discontinued operations in 2011 and 2010 were largely impacted by gains on Devon's International divestiture transactions. The following table presents the gains on the divestitures according to the quarters in which the divestitures closed in 2011 and 2010. The after-tax amounts in the table below exclude income tax expense related to assumed repatriations discussed in Note 14.

 

 

Second Quarter 2011

Third Quarter 2010

Second Quarter 2010

 

 

 

Gross

After

Taxes

 

Gross

After

Taxes

 

Gross

After

Taxes

 

(In millions)

  Brazil

$ 2,546

$ 2,546

$       —

$       —

$       —

$       —

  Azerbaijan

         —

         —

   1,543

   1,524

         —

         —

  China - Panyu

         —

         —

         —

         —

      308

      235

  Other

         —

         —

          (8)

          (2)

         —

         —

     Total

$ 2,546

$ 2,546

$ 1,535

$ 1,522

$    308

$    235

 

The following table presents the main classes of assets and liabilities associated with Devon's discontinued operations.

 

 

September 30,

December 31,

 

2011

2010

 

(In millions)

  Cash and cash equivalents

$                     —

$                  424

  Accounts receivable

                         1

                       43

  Other current assets

                       25

                       96

    Current assets

$                     26

$                  563

 

 

 

  Property and equipment, net

$                  105

$                  848

  Other long-term assets

                         6

                       11

    Long-term assets

$                  111

$                  859

 

 

 

  Accounts payable

$                     13

$                  260

  Other current liabilities

                       37

                       45

    Current liabilities

$                     50

$                  305

 

 

 

    Long-term liabilities

$                       2

$                     26