Asset Retirement Obligations

The schedule below summarizes changes in Devon’s asset retirement obligations.


	Six Months Ended June 30,
	2012	2011
	(In millions)
Asset retirement obligations as of beginning of period.............................	$ 1,563		$ 1,497
Liabilities incurred........................................................................................	33		23
Liabilities settled...........................................................................................	(34)		(39)
Revision of estimated obligation...............................................................	399		16
Accretion expense on discounted obligation...........................................	55		46
Foreign currency translation adjustment.................................................	(10)		28
Asset retirement obligations as of end of period.......................................	2,006		1,571
Less current portion........................................................................................	64		72
Asset retirement obligations, long-term.......................................................	$ 1,942		$ 1,499

During the first quarter of 2012, Devon recognized revisions to its asset retirement obligations totaling $399 million. The primary factor contributing to this revision was an overall increase in abandonment cost estimates for certain of its production operations facilities.

- Definition

The entire disclosure for an asset retirement obligation and the associated long-lived asset. An asset retirement obligation is a legal obligation associated with the disposal or retirement from service of a tangible long-lived asset that results from the acquisition, construction or development, or the normal operations of a long-lived asset, except for certain obligations of lessees.

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