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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
99
Other long-term liabilities as of December 31, 2013 and 2012 are detailed below.
December 31,
2013 2012
($ in millions)
CHK Utica ORRI conveyance obligation(a) .................................................... $ 250 $ 275
CHK C-T ORRI conveyance obligation(b) ...................................................... 149 164
Financing obligations(c) ................................................................................. 31 175
Mortgages payable(d) .................................................................................... — 56
Other ............................................................................................................ 554 506
Total other long-term liabilities.............................................................. $ 984 $ 1,176
____________________________________________
(a) $13 million and $18 million of the total $263 million and $293 million obligations are recorded in other current
liabilities as of December 31, 2013 and December 31, 2012, respectively. See Note 8 for further discussion of
the transaction.
(b) $12 million and $14 million of the total $161 million and $178 million obligations are recorded in other current
liabilities as of December 31, 2013 and December 31, 2012, respectively. See Note 8 for further discussion of
the transaction.
(c) As of December 31, 2012, this amount consisted primarily of an obligation related to 111 real estate surface
properties in the Fort Worth, Texas area that we financed in 2009 for approximately $145 million and for which
we entered into a 40-year master lease agreement whereby we agreed to lease the sites for approximately $15
million to $27 million annually. This lease transaction was recorded as a financing lease and the cash received
was recorded with an offsetting long-term liability on the consolidated balance sheet. On November 1, 2013, we
terminated the financing master lease agreement on the surface properties for $258 million and recorded a loss
of approximately $123 million associated with the extinguishment.
(d) In 2009, we financed our regional Barnett Shale headquarters building in Fort Worth, Texas for net proceeds of
approximately $54 million with a five-year term loan which had a floating interest rate of prime plus 275 basis
points. In 2013, we prepaid the term loan in full without penalty. As of December 31, 2013, the building was
classified as property and equipment held for sale on our consolidated balance sheet.
6. Income Taxes
The components of the income tax provision (benefit) for each of the periods presented below are as follows:
Years Ended December 31,
2013 2012 2011
($ in millions)
Current
Federal ................................................................................................ $ — $ — $ —
State .................................................................................................... 22 47 13
22 47 13
Deferred
Federal ................................................................................................ 502 (358) 1,044
State .................................................................................................... 24 (69) 66
526 (427) 1,110
Total .............................................................................................. $ 548 $ (380) $ 1,123