Discontinued Operations and Assets Held for Sale (Tables)

6 Months Ended

Jun. 30, 2019

Discontinued Operations And Disposal Groups [Abstract]

Summary of Amounts Reported as Discontinued Operations in the Consolidated Comprehensive Statements of Earnings and Carrying Amounts of Assets and Liabilities Classified as Held for Sale on the Consolidated Balance Sheets

The following table presents the amounts reported in the consolidated comprehensive statements of earnings as discontinued operations.

	Three months ended June 30,									Six months ended June 30,
	Canada			EnLink			Total			Canada			EnLink			Total
2019
Upstream revenues	$	388		$	—		$	388		$	635		$	—		$	635
Marketing and midstream revenues		12			—			12			38			—			38
Total revenues		400			—			400			673			—			673
Production expenses		153			—			153			294			—			294
Exploration expenses		4			—			4			13			—			13
Marketing and midstream expenses		9			—			9			18			—			18
Depreciation, depletion and amortization		49			—			49			128			—			128
Asset impairments		37			—			37			37			—			37
Asset dispositions		(189	)		—			(189	)		(189	)		—			(189	)
General and administrative expenses		13			—			13			31			—			31
Financing costs, net		13			—			13			26			—			26
Restructuring and transaction costs		236			—			236			239			—			239
Other expenses		31			—			31			3			—			3
Total expenses		356			—			356			600			—			600
Earnings from discontinued operations before income taxes		44			—			44			73			—			73
Income tax benefit		(285	)		—			(285	)		(285	)		—			(285	)
Net earnings from discontinued operations, net of tax	$	329		$	—		$	329		$	358		$	—		$	358
2018
Upstream revenues	$	303		$	—		$	303		$	605		$	—		$	605
Marketing and midstream revenues		24			1,595			1,619			41			3,207			3,248
Total revenues		327			1,595			1,922			646			3,207			3,853
Production expenses		166			—			166			314			—			314
Exploration expenses		6			—			6			18			—			18
Marketing and midstream expenses		11			1,269			1,280			18			2,610			2,628
Depreciation, depletion and amortization		78			106			184			172			244			416
General and administrative expenses		18			31			49			42			58			100
Financing costs, net		(2	)		45			43			(4	)		89			85
Restructuring and transaction costs		9			—			9			9			—			9
Other expenses		39			(5	)		34			109			(7	)		102
Total expenses		325			1,446			1,771			678			2,994			3,672
Earnings (loss) from discontinued operations before income taxes		2			149			151			(32	)		213			181
Income tax expense (benefit)		(20	)		10			(10	)		(51	)		16			(35	)
Net earnings from discontinued operations, net of tax		22			139			161			19			197			216
Net earnings attributable to noncontrolling interests		—			90			90			—			134			134
Net earnings from discontinued operations, attributable to Devon	$	22		$	49		$	71		$	19		$	63		$	82

The following table presents the carrying amounts of the assets and liabilities associated with discontinued operations on the consolidated balance sheets. The assets and liabilities associated with discontinued operations at June 30, 2019 and December 31, 2018 are primarily related to the divestiture of Devon’s Canadian business. Included within assets and liabilities associated with discontinued operations at December 31, 2018 are $197 million of assets and $69 million of liabilities related to the divestiture of non-core upstream Permian Basin assets which closed in January 2019 as further discussed in Note 2.

	June 30, 2019		December 31, 2018
Accounts receivable	$	111	$	37
Other current assets		20		246
Current assets associated with discontinued operations		131		283
Oil and gas property and equipment, based on successful efforts accounting, net		—		3,829
Other property and equipment, net		—		78
Other long-term assets		99		79
Long-term assets associated with discontinued operations		99		3,986
Total assets associated with discontinued operations	$	230	$	4,269

Accounts payable	$	97	$	101
Revenues and royalties payable		16		67
Short-term debt ⁽¹⁾		1,494		—
Other current liabilities		287		170
Current liabilities associated with discontinued operations		1,894		338
Long-term debt ⁽¹⁾		—		1,493
Asset retirement obligations		—		424
Other long-term liabilities		189		20
Deferred income taxes		—		348
Long-term liabilities associated with discontinued operations		189		2,285
Total liabilities associated with discontinued operations	$	2,083	$	2,623

(1)

Includes the $500 million 4.00% Senior Notes due July 15, 2021 and $1.0 billion 3.25% Senior Notes due May 15, 2022 that were retired early in July 2019 utilizing a portion of the proceeds from the sale of Devon’s Canadian business.

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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