Chesapeake Energy 2013 Annual Report Download - page 138

CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
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Assets and Liabilities Held for Sale
In 2013, we determined we would sell certain of our buildings and land (other than our core campus) in the
Oklahoma City area. In addition, as of December 31, 2013 we were continuing to pursue the sale of various land and
buildings located in the Fort Worth, Texas area. The land and buildings in both the Oklahoma City and Fort Worth areas
are reported under our other segment. We are also pursuing the sale of various other property and equipment, including
certain drilling rigs, compressors and gathering systems. The drilling rigs are reported under our oilfield services
operating segment, and the compressors and gathering systems are reported under our marketing, gathering and
compression operating segment. These assets are being actively marketed, and we believe it is probable they will be
sold over the next 12 months. As a result, these assets qualified as held for sale as of December 31, 2013. Natural
gas and oil properties that we intend to sell are not presented as held for sale pursuant to the rules governing full cost
accounting for oil and gas properties. A summary of the assets and liabilities held for sale on our consolidated balance
sheets as of December 31, 2013 and 2012 is detailed below.
December 31,
2013 2012
($ in millions)
Accounts receivable ................................................................................... $ — $ 4
Current assets held for sale ................................................................. $ — $ 4
Natural gas gathering systems and treating plants, net of accumulated
depreciation ............................................................................................. $ 11 $ 352
Oilfield services equipment, net of accumulated depreciation.................... 29 27
Compressors, net of accumulated depreciation ......................................... 285 —
Buildings and land, net of accumulated depreciation ................................. 405 255
Property and equipment held for sale, net ........................................... $ 730 $ 634
Accounts payable ....................................................................................... $ — $ 4
Accrued liabilities ........................................................................................ — 17
Current liabilities held for sale .............................................................. $ — $ 21
16. Impairments
Impairment of Natural Gas and Oil Properties
We review, on a quarterly basis, the carrying value of our natural gas and oil properties under the full cost accounting
rules of the SEC. This quarterly review, referred to as a ceiling test, is described in Note 1 under Natural Gas and Oil
Properties. In 2012, capitalized costs of natural gas and oil properties exceeded the ceiling, resulting in an impairment
in the carrying value of natural gas and oil properties of $3.315 billion. Cash flow hedges as of September 30, 2012,
which related to future periods, increased the ceiling test impairment by $279 million. We were not required to record
impairments of natural gas and oil properties for any other quarter in 2012 or for any quarters in 2011 or 2013.
Impairments of Fixed Assets and Other
A summary of our impairments of fixed assets by asset class and other charges for the years ended December
31, 2013, 2012 and 2011 is as follows:
Years Ended December 31,
2013 2012 2011
($ in millions)
Buildings and land ......................................................................................... $ 366 $ 248 $ 3
Drilling rigs and equipment ............................................................................ 71 60 —
Gathering systems ......................................................................................... 22 6 43
Other ............................................................................................................. 87 26 —
Total impairments of fixed assets and other .............................................. $ 546 $ 340 $ 46