Dispositions

United States E&P Segment

In the second quarter of 2018, we entered into separate agreements to sell non-core, non-operated conventional properties, primarily in the Gulf of Mexico, for combined net proceeds of $16 million, before closing adjustments. These transactions met the criteria for assets held for sale which is reflected in the consolidated balance sheet at June 30, 2018, with total assets of $53 million and total liabilities, relating to asset retirement obligations, of $80 million. These transactions closed during July of 2018.

International E&P Segment

In the second quarter of 2018, we entered into an agreement to sell a non-core property for proceeds of $56 million, before closing adjustments. This property is classified as held for sale in the consolidated balance sheet at June 30, 2018, with total assets of $77 million, total liabilities of $11 million and expected to close during 2018.

On March 1, 2018, we closed on the sale of our subsidiary, Marathon Oil Libya Limited, which held our 16.33% non-operated interest in the Waha concessions in Libya, to a subsidiary of Total S.A. (Elf Aquitaine SAS) for proceeds of approximately $450 million, excluding closing adjustments, and recognized a pre-tax gain of $255 million.

In the third quarter of 2017, we entered into separate agreements to sell certain non-core properties for combined proceeds of $53 million, before closing adjustments. We closed on one of the asset sales in the fourth quarter of 2017 and recognized no pre-tax gain or loss on sale. The remaining asset sale is expected to close during 2018 and is classified as held for sale in the consolidated balance sheet as of June 30, 2018, with total assets of $62 million and total liabilities of $4 million.

Canadian Business - Discontinued Operations

On May 31, 2017 we closed on the sale of our Canadian business, which included our 20% non-operated interest in the AOSP to Shell and Canadian Natural Resources Limited for $2.5 billion, excluding closing adjustments. Under the terms of the agreement, $1.8 billion was paid to us upon closing. At closing we received two notes receivable for a combined $750 million for the remaining proceeds, which was received in the first quarter of 2018. In the first quarter of 2017, we recorded a non-cash impairment charge of $6.6 billion (after-tax of $4.96 billion) primarily related to the property, plant and equipment of our Canadian business. This impairment was recorded for excess net book value over anticipated sales proceeds less costs to sell. Fair values of assets held for sale were determined based upon the anticipated sales proceeds less costs to sell, which resulted in a Level 2 classification. As the effective date of the transaction was January 1, 2017, we recorded a loss on sale of $43 million during the second quarter of 2017 due to second quarter results of operations from our Canadian business that were recorded in our financial statements, but transferred to the buyer upon closing.

Our Canadian business is reflected as discontinued operations in the consolidated statements of income and the consolidated statements of cash flows for all periods presented. The following table contains select amounts reported in our historical consolidated statements of income and consolidated statements of cash flows as discontinued operations:



	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)		2018		2017			2018		2017
Total revenue and other income		$	—	$	173		$	—	$	431
Net gain (loss) on disposal of assets		—		(43		)	—		(43		)
Total revenues and other income		—		130			—		388
Costs and expenses:
Production		—		103			—		254
Depreciation, depletion and amortization		—		1			—		40
Impairments		—		—			—		6,636
Other		—		12			—		25
Total costs and expenses		—		116			—		6,955
Pretax income (loss) from discontinued operations		—		14			—		(6,567		)
Provision (benefit) for income taxes		—		—			—		(1,674		)
Income (loss) from discontinued operations		$	—	$	14		$	—	$	(4,893	)



	Six Months Ended June 30,
(In millions)	2018		2017

Cash flow from discontinued operations:
Operating activities	$	—	$	141
Investing activities	—		(13		)
Changes in cash included in current assets held for sale	—		2
Net increase in cash and cash equivalents of discontinued operations	$	—	$	130