v2.4.0.6
Discontinued Operations
 12 Months Ended
Dec. 31, 2011
Discontinued Operations [Abstract]  
Discontinued Operations

20.  Discontinued Operations   

 

For the three-year period ended December 31, 2011, Devon's discontinued operations included amounts related to its assets in Azerbaijan, Brazil, China, Angola and other minor International properties. By the end of 2011, Devon had sold all these assets except for its assets in Angola. Devon has entered into an agreement to sell its Angolan assets. Upon closing, Devon will receive $70 million and the right to future contingent consideration based on achievement of certain objectives.

 

Revenues related to Devon's discontinued operations totaled $43 million, $693 million and $945 million during 2011, 2010 and 2009, respectively. Earnings from discontinued operations before income taxes totaled $2.6 billion, $2.4 billion and $322 million during 2011, 2010 and 2009, respectively. Earnings before income taxes in 2011 and 2010 were largely impacted by gains on divestiture transactions. The following table presents the gains on the divestitures by year.

 

             

 

Year Ended December 31,

 

2011

2010

2009

 

Gross

After Tax

Gross

After Tax

Gross

After Tax

 

(In millions)

  Brazil

$ 2,548

$ 2,548

$       —

$       —

$       —

$       —

  Azerbaijan

         —

         —

   1,543

   1,524

         —

         —

  China - Panyu

         —

         —

       308

       235

         —

         —

  Other

           4

           4

        (33)

        (27)

         17

         17

     Total

$ 2,552

$ 2,552

$ 1,818

$ 1,732

$      17

$      17

 

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

 

     

 

December 31,

 

2011

2010

 

(In millions)

  Cash and cash equivalents

$        —

$      424

  Other current assets

           21

        139

    Current assets

$        21

$      563

 

 

 

  Property and equipment, net

$      132

$      859

 

 

 

  Accounts payable

$        20

$      260

  Other current liabilities

           28

           45

    Current liabilities

$        48

$      305

 

 

 

 Other long-term liabilities

$         —

$        26

 

Reduction of Carrying Value of Oil and Gas Properties

 

During 2009, Devon reduced the carrying value of its Brazil oil and gas properties by $109 million ($105 million after tax). This reduction resulted largely from an exploratory well drilled at the BM-BAR-3 block in the offshore Barreirinhas Basin that did not have adequate reserves for commercial viability.