Chesapeake Energy 2010 Annual Report Download - page 179

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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
18. Quarterly Financial Data (unaudited)
Summarized unaudited quarterly financial data for 2010 and 2009 are as follows ($ in millions except per
share data):
Quarters Ended
March 31,
2010
June 30,
2010
September 30,
2010
December 31,
2010
Total revenues ....................... $ 2,798 $ 2,012 $ 2,581 $ 1,975
Gross profit(a) ........................ $ 1,212 $ 447 $ 817 $ 329
Net income attributable to Chesapeake . . . $ 738 $ 255 $ 558 $ 223
Net income available to common
stockholders ....................... $ 732 $ 235 $ 515 $ 181
Net earnings per common share:
Basic ........................... $ 1.16 $ 0.37 $ 0.81 $ 0.29
Diluted .......................... $ 1.14 $ 0.37 $ 0.75 $ 0.28
Quarters Ended
March 31,
2009
June 30,
2009
September 30,
2009
December 31,
2009
Total revenues ....................... $ 1,995 $ 1,673 $ 1,811 $ 2,222
Gross profit (loss)(a)(b) .................. $ (9,053) $ 424 $ 397 $ (713)
Net income (loss) attributable to
Chesapeake(b) ...................... $ (5,740) $ 243 $ 192 $ (524)
Net income (loss) available to common
stockholders(b) ...................... $ (5,746) $ 237 $ 186 $ (530)
Net earnings (loss) per common share:
Basic ........................... $ (9.63) $ 0.39 $ 0.30 $ (0.84)
Diluted .......................... $ (9.63) $ 0.39 $ 0.30 $ (0.84)
(a) Total revenue less operating costs.
(b) Includes a before-tax ceiling test write-down of $9.6 billion and $1.4 billion on our natural gas and oil
properties for the quarters ended March 31, 2009 and December 31, 2009, respectively.
19. Recently Issued Accounting Standards
The Financial Accounting Standards Board (FASB) recently issued the following standards which we
reviewed to determine the potential impact on our financial statements upon adoption.
In February 2010, the FASB amended its guidance on subsequent events to remove the requirement for
SEC filers to disclose the date through which an entity has evaluated subsequent events. The guidance was
effective upon issuance. We adopted this guidance in 2010.
The FASB also issued new guidance requiring additional disclosures about fair value measurements,
adding a new requirement to disclose transfers in and out of Levels 1 and 2 measurements and gross
presentation of activity within a Level 3 roll forward. The guidance also clarified existing disclosure
requirements regarding the level of disaggregation of fair value measurements and disclosures regarding
inputs and valuation techniques. We adopted this guidance in 2010. Adoption had no impact on our financial
position or results of operations. Required disclosures for the reconciliation of purchases, sales, issuance and
settlements of financial instruments valued with a Level 3 method are effective beginning on January 1, 2011,
and we do not expect the implementation to have a material impact on our financial position or results of
operations. See Note 14 for discussion regarding fair value measurements.
133