Supplementary Information - Condensed Consolidating Financial Information

9 Months Ended

Sep. 30, 2014

Supplementary Information - Condensed Consolidating Financial Information [Abstract]

Supplementary Information - Condensed Consolidating Financial Information

Supplementary Information—Condensed Consolidating Financial Information

We have various cross guarantees among ConocoPhillips, ConocoPhillips Company and ConocoPhillips Canada Funding Company I, with respect to publicly held debt securities. ConocoPhillips Company is 100 percent owned by ConocoPhillips. ConocoPhillips Canada Funding Company I is an indirect, 100 percent owned subsidiary of ConocoPhillips Company. ConocoPhillips and ConocoPhillips Company have fully and unconditionally guaranteed the payment obligations of ConocoPhillips Canada Funding Company I, with respect to its publicly held debt securities. Similarly, ConocoPhillips has fully and unconditionally guaranteed the payment obligations of ConocoPhillips Company with respect to its publicly held debt securities. In addition, ConocoPhillips Company has fully and unconditionally guaranteed the payment obligations of ConocoPhillips with respect to its publicly held debt securities. All guarantees are joint and several. The following condensed consolidating financial information presents the results of operations, financial position and cash flows for:

• ConocoPhillips, ConocoPhillips Company and ConocoPhillips Canada Funding Company I (in each case, reflecting investments in subsidiaries utilizing the equity method of accounting).
• All other nonguarantor subsidiaries of ConocoPhillips.
• The consolidating adjustments necessary to present ConocoPhillips’ results on a consolidated basis.

During 2013 ConocoPhillips Australia Funding Company’s guaranteed, publicly held debt was repaid. Beginning in the first quarter of 2014, financial information for ConocoPhillips Australia Funding Company is presented in the “All Other Subsidiaries” column of our condensed consolidating financial information.

In April 2014 ConocoPhillips received a $32 billion dividend from ConocoPhillips Company to settle certain accumulated intercompany balances.  This consisted of a $15 billion distribution of earnings and a $17 billion return of capital. The transaction was reflected in the second quarter 2014 Condensed Consolidating Financial Information for ConocoPhillips and ConocoPhillips Company and had no impact on our consolidated financial statements.  

This condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements and notes.

			Millions of Dollars
			Three Months Ended September 30, 2014
Income Statement			ConocoPhillips		ConocoPhillips Company	ConocoPhillips Canada Funding Company I	All Other Subsidiaries	Consolidating Adjustments	Total Consolidated
Revenues and Other Income
Sales and other operating revenues			$	-	4,672	-	7,408	-	12,080
Equity in earnings of affiliates				1,722	2,098	-	975	(4,031)	764
Gain on dispositions				-	2	-	2	-	4
Other income				1	15	-	53	-	69
Intercompany revenues				20	104	72	1,444	(1,640)	-
Total Revenues and Other Income				1,743	6,891	72	9,882	(5,671)	12,917
Costs and Expenses
Purchased commodities				-	4,036	-	2,139	(1,472)	4,703
Production and operating expenses				-	414	-	1,617	10	2,041
Selling, general and administrative expenses				2	136	1	65	(1)	203
Exploration expenses				-	331	-	128	-	459
Depreciation, depletion and amortization				-	273	-	1,823	-	2,096
Impairments				-	104	-	4	-	108
Taxes other than income taxes				-	69	-	424	-	493
Accretion on discounted liabilities				-	14	-	106	-	120
Interest and debt expense				134	77	58	57	(177)	149
Foreign currency transaction (gains) losses				33	3	(208)	164	-	(8)
Total Costs and Expenses				169	5,457	(149)	6,527	(1,640)	10,364
Income from continuing operations before income taxes				1,574	1,434	221	3,355	(4,031)	2,553
Provision (benefit) for income taxes				(52)	(288)	9	1,235	-	904
Income From Continuing Operations				1,626	1,722	212	2,120	(4,031)	1,649
Income from discontinued operations				1,078	1,078	-	61	(1,139)	1,078
Net income				2,704	2,800	212	2,181	(5,170)	2,727
Less: net income attributable to noncontrolling interests				-	-	-	(23)	-	(23)
Net Income Attributable to ConocoPhillips			$	2,704	2,800	212	2,158	(5,170)	2,704
Comprehensive Income Attributable to ConocoPhillips			$	791	887	29	255	(1,171)	791
	Millions of Dollars
	Three Months Ended September 30, 2013
Income Statement	ConocoPhillips			ConocoPhillips Company	ConocoPhillips Australia Funding Company	ConocoPhillips Canada Funding Company I	All Other Subsidiaries	Consolidating Adjustments	Total Consolidated
Revenues and Other Income
Sales and other operating revenues	$	-		4,625	-	-	9,018	-	13,643
Equity in earnings of affiliates*		2,502		2,548	-	-	647	(4,988)	709
Gain on dispositions		-		418	-	-	651	-	1,069
Other income		-		29	-	-	20	-	49
Intercompany revenues*		21		106	-	75	1,338	(1,540)	-
Total Revenues and Other Income		2,523		7,726	-	75	11,674	(6,528)	15,470
Costs and Expenses
Purchased commodities		-		3,993	-	-	3,047	(1,332)	5,708
Production and operating expenses		-		385	-	-	1,580	(3)	1,962
Selling, general and administrative expenses		3		193	-	1	53	(1)	249
Exploration expenses		-		158	-	-	155	-	313
Depreciation, depletion and amortization		-		245	-	-	1,657	-	1,902
Impairments		-		-	-	-	1	-	1
Taxes other than income taxes		-		55	-	-	609	-	664
Accretion on discounted liabilities		-		14	-	-	92	-	106
Interest and debt expense*		156		86	-	58	55	(204)	151
Foreign currency transaction (gains) losses		(15)		(1)	-	72	(47)	-	9
Total Costs and Expenses		144		5,128	-	131	7,202	(1,540)	11,065
Income (loss) from continuing operations before income taxes		2,379		2,598	-	(56)	4,472	(4,988)	4,405
Provision (benefit) for income taxes		(44)		96	-	7	1,907	-	1,966
Income (Loss) From Continuing Operations		2,423		2,502	-	(63)	2,565	(4,988)	2,439
Income from discontinued operations		57		57	-	-	57	(114)	57
Net income (loss)		2,480		2,559	-	(63)	2,622	(5,102)	2,496
Less: net income attributable to noncontrolling interests		-		-	-	-	(16)	-	(16)
Net Income (Loss) Attributable to ConocoPhillips	$	2,480		2,559	-	(63)	2,606	(5,102)	2,480
Comprehensive Income Attributable to ConocoPhillips	$	3,352		3,431	-	17	3,212	(6,660)	3,352
*"Interest and debt expense" for ConocoPhillips was revised to reflect contractually agreed interest rates, with offsetting adjustments in the "Equity in earnings of affiliates" and
"Intercompany revenues" lines for ConocoPhillips, ConocoPhillips Company and All Other Subsidiaries. There was no impact to Total Consolidated balances.

			Millions of Dollars
			Nine Months Ended September 30, 2014
Income Statement			ConocoPhillips		ConocoPhillips Company	ConocoPhillips Canada Funding Company I	All Other Subsidiaries	Consolidating Adjustments	Total Consolidated
Revenues and Other Income
Sales and other operating revenues			$	-	15,920	-	25,396	-	41,316
Equity in earnings of affiliates				6,053	7,063	-	2,235	(13,343)	2,008
Gain on dispositions				-	3	-	17	-	20
Other income				1	60	-	261	-	322
Intercompany revenues				59	369	214	4,685	(5,327)	-
Total Revenues and Other Income				6,113	23,415	214	32,594	(18,670)	43,666
Costs and Expenses
Purchased commodities				-	13,984	-	8,060	(4,719)	17,325
Production and operating expenses				-	1,255	-	4,751	(40)	5,966
Selling, general and administrative expenses				8	416	1	193	(15)	603
Exploration expenses				-	713	-	559	-	1,272
Depreciation, depletion and amortization				-	776	-	5,282	-	6,058
Impairments				-	122	-	4	-	126
Taxes other than income taxes				-	233	-	1,523	-	1,756
Accretion on discounted liabilities				-	43	-	314	-	357
Interest and debt expense				441	209	174	204	(553)	475
Foreign currency transaction (gains) losses				36	5	(196)	172	-	17
Total Costs and Expenses				485	17,756	(21)	21,062	(5,327)	33,955
Income from continuing operations before income taxes				5,628	5,659	235	11,532	(13,343)	9,711
Provision (benefit) for income taxes				(149)	(394)	7	4,416	-	3,880
Income From Continuing Operations				5,777	6,053	228	7,116	(13,343)	5,831
Income from discontinued operations				1,131	1,131	-	114	(1,245)	1,131
Net income				6,908	7,184	228	7,230	(14,588)	6,962
Less: net income attributable to noncontrolling interests				-	-	-	(54)	-	(54)
Net Income Attributable to ConocoPhillips			$	6,908	7,184	228	7,176	(14,588)	6,908
Comprehensive Income Attributable to ConocoPhillips			$	5,491	5,767	24	5,730	(11,521)	5,491
	Millions of Dollars
	Nine Months Ended September 30, 2013
Income Statement	ConocoPhillips			ConocoPhillips Company	ConocoPhillips Australia Funding Company	ConocoPhillips Canada Funding Company I	All Other Subsidiaries	Consolidating Adjustments	Total Consolidated
Revenues and Other Income
Sales and other operating revenues	$	-		13,710	-	-	27,449	-	41,159
Equity in earnings of affiliates*		6,771		7,234	-	-	1,803	(14,243)	1,565
Gain on dispositions		-		419	-	-	803	-	1,222
Other income		1		237	-	-	79	-	317
Intercompany revenues*		62		341	13	229	3,723	(4,368)	-
Total Revenues and Other Income		6,834		21,941	13	229	33,857	(18,611)	44,263
Costs and Expenses
Purchased commodities		-		11,901	-	-	8,868	(3,706)	17,063
Production and operating expenses		-		1,106	-	-	4,238	(23)	5,321
Selling, general and administrative expenses		9		443	-	1	173	(19)	607
Exploration expenses		-		491	-	-	420	-	911
Depreciation, depletion and amortization		-		674	-	-	4,867	-	5,541
Impairments		-		-	-	-	31	-	31
Taxes other than income taxes		-		180	-	-	2,018	-	2,198
Accretion on discounted liabilities		-		42	-	-	275	-	317
Interest and debt expense*		467		246	12	176	139	(620)	420
Foreign currency transaction (gains) losses		26		8	-	(209)	141	-	(34)
Total Costs and Expenses		502		15,091	12	(32)	21,170	(4,368)	32,375
Income from continuing operations before income taxes		6,332		6,850	1	261	12,687	(14,243)	11,888
Provision (benefit) for income taxes		(154)		79	-	28	5,406	-	5,359
Income From Continuing Operations		6,486		6,771	1	233	7,281	(14,243)	6,529
Income from discontinued operations		183		183	-	-	183	(366)	183
Net income		6,669		6,954	1	233	7,464	(14,609)	6,712
Less: net income attributable to noncontrolling interests		-		-	-	-	(43)	-	(43)
Net Income Attributable to ConocoPhillips	$	6,669		6,954	1	233	7,421	(14,609)	6,669
Comprehensive Income Attributable to ConocoPhillips	$	5,294		5,579	1	88	5,747	(11,415)	5,294
*"Interest and debt expense" for ConocoPhillips was revised to reflect contractually agreed interest rates, with offsetting adjustments in the "Equity in earnings of affiliates" and
"Intercompany revenues" lines for ConocoPhillips, ConocoPhillips Company and All Other Subsidiaries. There was no impact to Total Consolidated balances.

			Millions of Dollars
			September 30, 2014
Balance Sheet			ConocoPhillips		ConocoPhillips Company	ConocoPhillips Canada Funding Company I	All Other Subsidiaries	Consolidating Adjustments	Total Consolidated
Assets
Cash and cash equivalents			$	-	1,182	239	3,987	-	5,408
Short-term investments				-	-	-	374	-	374
Accounts and notes receivable				22	3,102	17	7,266	(2,954)	7,453
Inventories				-	248	-	1,082	-	1,330
Prepaid expenses and other current assets				11	626	12	1,086	(47)	1,688
Total Current Assets				33	5,158	268	13,795	(3,001)	16,253
Investments, loans and long-term receivables*				60,564	75,338	4,105	36,674	(150,864)	25,817
Net properties, plants and equipment				-	9,554	-	66,236	-	75,790
Other assets				42	289	144	1,419	(768)	1,126
Total Assets			$	60,639	90,339	4,517	118,124	(154,633)	118,986
Liabilities and Stockholders’ Equity
Accounts payable			$	1	4,114	6	7,525	(2,954)	8,692
Short-term debt				1,498	6	6	178	-	1,688
Accrued income and other taxes				-	83	-	1,572	-	1,655
Employee benefit obligations				-	496	-	217	-	713
Other accruals				115	330	99	896	(47)	1,393
Total Current Liabilities				1,614	5,029	111	10,388	(3,001)	14,141
Long-term debt				7,539	5,204	2,976	3,780	-	19,499
Asset retirement obligations and accrued environmental costs				-	1,330	-	8,473	-	9,803
Deferred income taxes				-	663	-	15,429	(8)	16,084
Employee benefit obligations				-	1,639	-	580	-	2,219
Other liabilities and deferred credits*				2,770	10,942	1,454	19,443	(33,030)	1,579
Total Liabilities				11,923	24,807	4,541	58,093	(36,039)	63,325
Retained earnings				38,930	23,893	(1,272)	19,326	(35,426)	45,451
Other common stockholders’ equity				9,786	41,639	1,248	40,318	(83,168)	9,823
Noncontrolling interests				-	-	-	387	-	387
Total Liabilities and Stockholders’ Equity			$	60,639	90,339	4,517	118,124	(154,633)	118,986
*Includes intercompany loans.
	Millions of Dollars
	December 31, 2013
Balance Sheet	ConocoPhillips			ConocoPhillips Company	ConocoPhillips Australia Funding Company	ConocoPhillips Canada Funding Company I	All Other Subsidiaries	Consolidating Adjustments	Total Consolidated
Assets
Cash and cash equivalents	$	-		2,434	-	229	3,583	-	6,246
Short-term investments		-		-	-	-	272	-	272
Accounts and notes receivable		73		2,122	2	-	9,267	(2,977)	8,487
Inventories		-		174	-	-	1,020	-	1,194
Prepaid expenses and other current assets		20		535	-	35	2,311	(77)	2,824
Total Current Assets		93		5,265	2	264	16,453	(3,054)	19,023
Investments, loans and long-term receivables*		86,836		100,052	-	4,259	34,795	(200,678)	25,264
Net properties, plants and equipment		-		9,313	-	-	63,514	-	72,827
Other assets		38		260	-	103	1,394	(852)	943
Total Assets	$	86,967		114,890	2	4,626	116,156	(204,584)	118,057
Liabilities and Stockholders’ Equity
Accounts payable	$	-		3,388	-	4	8,899	(2,977)	9,314
Short-term debt		395		4	-	5	185	-	589
Accrued income and other taxes		-		223	-	-	2,517	(27)	2,713
Employee benefit obligations		-		566	-	-	276	-	842
Other accruals		210		639	-	81	790	(49)	1,671
Total Current Liabilities		605		4,820	-	90	12,667	(3,053)	15,129
Long-term debt		9,047		5,208	-	2,980	3,838	-	21,073
Asset retirement obligations and accrued environmental costs		-		1,289	-	-	8,594	-	9,883
Deferred income taxes		94		557	-	-	14,569	-	15,220
Employee benefit obligations		-		1,791	-	-	668	-	2,459
Other liabilities and deferred credits*		31,693		9,422	-	1,603	22,204	(63,121)	1,801
Total Liabilities		41,439		23,087	-	4,673	62,540	(66,174)	65,565
Retained earnings		34,636		31,835	-	(1,500)	12,848	(36,659)	41,160
Other common stockholders’ equity		10,892		59,968	2	1,453	40,366	(101,751)	10,930
Noncontrolling interests		-		-	-	-	402	-	402
Total Liabilities and Stockholders’ Equity	$	86,967		114,890	2	4,626	116,156	(204,584)	118,057
*Includes intercompany loans.

			Millions of Dollars
			Nine Months Ended September 30, 2014
Statement of Cash Flows			ConocoPhillips		ConocoPhillips Company	ConocoPhillips Canada Funding Company I	All Other Subsidiaries	Consolidating Adjustments	Total Consolidated
Cash Flows From Operating Activities
Net cash provided by (used in) continuing operating activities			$	14,722	(146)	10	14,423	(15,014)	13,995
Net cash provided by discontinued operations				-	202	-	394	(453)	143
Net Cash Provided by Operating Activities				14,722	56	10	14,817	(15,467)	14,138
Cash Flows From Investing Activities
Capital expenditures and investments				-	(3,235)	-	(11,132)	1,638	(12,729)
Proceeds from asset dispositions				16,912	1,386	-	105	(16,969)	1,434
Net purchases of short-term investments				-	-	-	(109)	-	(109)
Long-term advances/loans—related parties				-	(635)	-	(7)	642	-
Collection of advances/loans—related parties				-	47	-	112	(16)	143
Intercompany cash management				(28,922)	33,392	-	(4,470)	-	-
Other				-	(429)	-	(25)	-	(454)
Net cash provided by (used in) continuing investing activities				(12,010)	30,526	-	(15,526)	(14,705)	(11,715)
Net cash provided by (used in) discontinued operations				-	133	-	(59)	(133)	(59)
Net Cash Provided by (Used in) Investing Activities				(12,010)	30,659	-	(15,585)	(14,838)	(11,774)
Cash Flows From Financing Activities
Issuance of debt				-	-	-	642	(642)	-
Repayment of debt				(400)	(16)	-	(105)	16	(505)
Issuance of company common stock				308	-	-	-	(281)	27
Dividends paid				(2,618)	(15,088)	-	(458)	15,546	(2,618)
Other				(2)	(16,863)	-	1,514	15,331	(20)
Net cash provided by (used in) continuing financing activities				(2,712)	(31,967)	-	1,593	29,970	(3,116)
Net cash used in discontinued operations				-	-	-	(335)	335	-
Net Cash Provided by (Used in) Financing Activities				(2,712)	(31,967)	-	1,258	30,305	(3,116)
Effect of Exchange Rate Changes on Cash and Cash Equivalents				-	-	-	(86)	-	(86)
Net Change in Cash and Cash Equivalents				-	(1,252)	10	404	-	(838)
Cash and cash equivalents at beginning of period				-	2,434	229	3,583	-	6,246
Cash and Cash Equivalents at End of Period			$	-	1,182	239	3,987	-	5,408
	Millions of Dollars
	Nine Months Ended September 30, 2013*
Statement of Cash Flows	ConocoPhillips			ConocoPhillips Company	ConocoPhillips Australia Funding Company	ConocoPhillips Canada Funding Company I	All Other Subsidiaries	Consolidating Adjustments	Total Consolidated
Cash Flows From Operating Activities
Net cash provided by (used in) continuing operating activities	$	(377)		2,959	(2)	(1)	10,978	(1,616)	11,941
Net cash provided by discontinued operations		-		91	-	-	579	(435)	235
Net Cash Provided by (Used in) Operating Activities		(377)		3,050	(2)	(1)	11,557	(2,051)	12,176
Cash Flows From Investing Activities
Capital expenditures and investments		-		(1,456)	-	-	(9,825)	-	(11,281)
Proceeds from asset dispositions		-		581	-	-	2,646	(52)	3,175
Net sales of short-term investments		-		-	-	-	1	-	1
Long-term advances/loans—related parties		-		(283)	-	-	(541)	824	-
Collection of advances/loans—related parties		-		153	750	2	2,026	(2,801)	130
Intercompany cash management		1,793		(432)	-	-	(1,361)	-	-
Other		-		3	-	-	(54)	-	(51)
Net cash provided by (used in) continuing investing activities		1,793		(1,434)	750	2	(7,108)	(2,029)	(8,026)
Net cash used in discontinued operations		-		(52)	-	-	(540)	52	(540)
Net Cash Provided by (Used in) Investing Activities		1,793		(1,486)	750	2	(7,648)	(1,977)	(8,566)
Cash Flows From Financing Activities
Issuance of debt		-		523	-	-	301	(824)	-
Repayment of debt		-		(1,939)	(750)	-	(1,058)	2,801	(946)
Change in restricted cash		748		-	-	-	-	-	748
Issuance of company common stock		313		-	-	-	-	(301)	12
Dividends paid		(2,481)		-	(4)	-	(2,257)	2,261	(2,481)
Other		2		39	-	-	(686)	52	(593)
Net cash used in continuing financing activities		(1,418)		(1,377)	(754)	-	(3,700)	3,989	(3,260)
Net cash used in discontinued operations		-		-	-	-	(39)	39	-
Net Cash Used in Financing Activities		(1,418)		(1,377)	(754)	-	(3,739)	4,028	(3,260)
Effect of Exchange Rate Changes on Cash and Cash Equivalents		-		(9)	-	-	(76)	-	(85)
Net Change in Cash and Cash Equivalents		(2)		178	(6)	1	94	-	265
Cash and cash equivalents at beginning of period		2		12	6	59	3,539	-	3,618
Cash and Cash Equivalents at End of Period	$	-		190	-	60	3,633	-	3,883
*Revised to reflect intercompany cash management activities previously presented as cash flows from continuing operating activities as both continuing activities and discontinued
operations in "Cash Flows from Investing Activities" and "Cash Flows From Financing Activities." There was no impact on Total Consolidated balances.