Chesapeake Energy 2014 Annual Report Download - page 105

CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
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In connection with divestitures, our purchase and sale agreements generally provide indemnification to the
counterparty for liabilities incurred as a result of a breach of a representation or warranty by the indemnifying party
and/or other specified matters. These indemnifications generally have a discrete term and are intended to protect the
parties against risks that are difficult to predict or cannot be quantified at the time of entering into or consummating a
particular transaction. For divestitures of oil and gas properties, our purchase and sale agreements may require the
return of a portion of the proceeds we receive as a result of uncured title defects.
Certain of our oil and natural gas properties are burdened by non-operating interests such as royalty and overriding
royalty interests, including overriding royalty interests sold through our VPP transactions. As the holder of the working
interest from which these interests have been created, we have the responsibility to bear the cost of developing and
producing the reserves attributable to these interests. See Note 12 for further discussion of our VPP transactions.
While executing our strategic priorities, we have incurred certain cash charges, including contract termination
charges, financing extinguishment costs and charges for unused natural gas transportation and gathering capacity.
As we continue to focus on our strategic priorities, certain actions that may reduce financial leverage and complexity
could negatively impact our future results of operations and/or liquidity, and we may incur additional cash and noncash
charges.
5. Other Liabilities
Other current liabilities as of December 31, 2014 and 2013 are detailed below.
December 31,
2014 2013
($ in millions)
Revenues and royalties due others $ 1,176 $ 1,409
Accrued oil, natural gas and NGL drilling and production costs 385 457
Joint interest prepayments received 189 464
Accrued compensation and benefits 344 320
Other accrued taxes 55 161
Accrued dividends 101 101
Other 811 599
Total other current liabilities $ 3,061 $ 3,511
Other long-term liabilities as of December 31, 2014 and 2013 are detailed below.
December 31,
2014 2013
($ in millions)
CHK Utica ORRI conveyance obligation(a) $ 220 $ 250
CHK C-T ORRI conveyance obligation(b) 135 149
Financing obligations 30 31
Unrecognized tax benefits 45 317
Other 249 237
Total other long-term liabilities $ 679 $ 984
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(a) $14 million and $13 million of the total $234 million and $263 million obligations are recorded in other current
liabilities as of December 31, 2014 and 2013, respectively. See Noncontrolling Interests in Note 8 for further
discussion of the transaction.
(b) $23 million and $12 million of the total $158 million and $161 million obligations are recorded in other current
liabilities as of December 31, 2014 and 2013, respectively. See Noncontrolling Interests in Note 8 for further
discussion of the transaction.