Chesapeake Energy 2013 Annual Report Download - page 159

CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
151
22. Recently Issued Accounting Standards
Recently Adopted Accounting Standards
In February 2012, the Financial Accounting Standards Board (FASB) issued guidance changing the presentation
requirements of significant reclassifications out of accumulated other comprehensive income in their entirety and their
corresponding effect on net income. We adopted this standard in the first quarter of 2013 and it did not have a material
impact on our financial statements.
In December 2011 and January 2013, the FASB issued guidance amending and expanding disclosure
requirements about offsetting and related arrangements associated with derivatives. We adopted this standard in the
first quarter of 2013 and it did not have a material impact on our financial statements.
Recently Issued Accounting Standards
To reduce diversity in practice related to the presentation of unrecognized tax benefits, in July 2013 the FASB
issued guidance requiring the presentation of an unrecognized tax benefit in the financial statements as a reduction
to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. This net
presentation is required unless a net operating loss carryforward, a similar tax loss or a tax credit carryforward is not
available at the reporting date or the tax law of the jurisdiction does not require, and the entity does not intend to use,
the deferred tax asset to settle any additional income tax that would result from the disallowance of the unrecognized
tax benefit. The guidance will be effective on January 1, 2014; retrospective application and early adoption are permitted,
but not required. Because we have historically presented unrecognized tax benefits net of net operating loss
carryforwards, similar tax losses or tax credit carryforwards, this standard will not impact our consolidated financial
statements.
In February 2013, the FASB issued guidance on the recognition, measurement and disclosure obligations resulting
from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date.
We will adopt this standard effective January 1, 2014. We do not expect the adoption to have a material impact on our
consolidated financial statements.
23. Subsequent Events
On January 13, 2014, we sold our investment in Chaparral Energy, Inc. for cash proceeds of $215 million.
Subsequent to December 31, 2013, we acquired ten rigs subject to the master lease agreements described in
Note 4. In conjunction with the purchases, we also terminated approximately $9 million of remaining lease commitments
associated with these rigs. Total consideration paid was approximately $31 million and we anticipate recording a charge
in the 2014 first quarter for lease termination cost.
Subsequent to December 31, 2013, we acquired 576 compressors subject to the master lease agreements
described in Note 4. In conjunction with these purchases, we also terminated approximately $126 million of remaining
lease commitments associated with these compressors. Total consideration paid was approximately $168 million.