Supplementary Information - Condensed Consolidating Financial Information

12 Months Ended

Dec. 31, 2017

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 their 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.

In 2015, ConocoPhillips received a $3.5billion return of capital from ConocoPhillips Company to settle certain accumulated intercompany balances. The transaction had no impact on our consolidated financial statements.

In 2016, ConocoPhillips received a $2.3 billion return of capital from ConocoPhillips Company to settle certain accumulated intercompany balances.  The transaction had no impact on our consolidated financial statements.

In 2016, ConocoPhillips Canada Funding Company I repaid $1.25 billion of external debt. This transaction was reflected in the full-year 2016 condensed consolidating financial statements.

In 2017, ConocoPhillips Company received a $9.8 billion return of capital from a nonguarantor subsidiary to settle certain accumulated intercompany balances.  The transaction had no impact on our consolidated financial statements.

In 2017, ConocoPhillips received a $5.0 billion return of capital from ConocoPhillips Company to settle certain accumulated intercompany balances.  The transaction had no impact on our consolidated financial statements.

In 2017, ConocoPhillips received a $3.0 billion distribution from ConocoPhillips Company to settle certain accumulated intercompany balances. This consisted of a $2.8 billion return of capital and a $0.2 billion return of earnings. This transaction had no impact on our consolidated financial statements.

In 2017, ConocoPhillips Company received a $1.4 billion loan repayment from a nonguarantor subsidiary to settle certain accumulated intercompany balances. This transaction 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
	Year Ended December 31, 2017
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	$	-	12,433	-	16,673	-	29,106
Equity in earnings (losses) of affiliates		(454)	2,047	-	630	(1,451)	772
Gain on dispositions		-	916	-	1,261	-	2,177
Other income		2	35	-	492	-	529
Intercompany revenues		48	291	170	3,405	(3,914)	-
Total Revenues and Other Income		(404)	15,722	170	22,461	(5,365)	32,584
Costs and Expenses
Purchased commodities		-	11,145	-	4,580	(3,250)	12,475
Production and operating expenses		-	832	-	4,358	(17)	5,173
Selling, general and administrative expenses		9	476	-	82	(6)	561
Exploration expenses		-	544	-	394	-	938
Depreciation, depletion and amortization		-	855	-	5,990	-	6,845
Impairments		-	1,159	-	5,442	-	6,601
Taxes other than income taxes		-	140	-	669	-	809
Accretion on discounted liabilities		-	32	-	330	-	362
Interest and debt expense		420	664	147	508	(641)	1,098
Foreign currency transaction (gains) losses		(43)	11	156	(89)	-	35
Other expense		267	35	-	-	-	302
Total Costs and Expenses		653	15,893	303	22,264	(3,914)	35,199
Income (Loss) before income taxes		(1,057)	(171)	(133)	197	(1,451)	(2,615)
Income tax provision (benefit)		(202)	283	7	(1,910)	-	(1,822)
Net income (loss)		(855)	(454)	(140)	2,107	(1,451)	(793)
Less: net income attributable to noncontrolling interests		-	-	-	(62)	-	(62)
Net Income (Loss) Attributable to ConocoPhillips	$	(855)	(454)	(140)	2,045	(1,451)	(855)
Comprehensive Income (Loss) Attributable to ConocoPhillips	$	(180)	221	23	2,703	(2,947)	(180)
Income Statement	Year Ended December 31, 2016
Revenues and Other Income
Sales and other operating revenues	$	-	10,352	-	13,341	-	23,693
Equity in earnings (losses) of affiliates		(3,351)	(1,051)	-	(91)	4,545	52
Gain on dispositions		-	120	-	240	-	360
Other income		1	(11)	-	265	-	255
Intercompany revenues		88	277	220	3,036	(3,621)	-
Total Revenues and Other Income		(3,262)	9,687	220	16,791	924	24,360
Costs and Expenses
Purchased commodities		-	9,144	-	3,562	(2,712)	9,994
Production and operating expenses		-	779	-	5,131	(243)	5,667
Selling, general and administrative expenses		8	581	-	140	(6)	723
Exploration expenses		-	1,231	-	684	-	1,915
Depreciation, depletion and amortization		-	1,178	-	7,884	-	9,062
Impairments		-	67	-	72	-	139
Taxes other than income taxes		-	162	-	577	-	739
Accretion on discounted liabilities		-	46	-	379	-	425
Interest and debt expense		506	622	207	570	(660)	1,245
Foreign currency transaction (gains) losses		(19)	2	174	(176)	-	(19)
Total Costs and Expenses		495	13,812	381	18,823	(3,621)	29,890
Loss before income taxes		(3,757)	(4,125)	(161)	(2,032)	4,545	(5,530)
Income tax benefit		(142)	(774)	(9)	(1,046)	-	(1,971)
Net loss		(3,615)	(3,351)	(152)	(986)	4,545	(3,559)
Less: net income attributable to noncontrolling interests		-	-	-	(56)	-	(56)
Net Loss Attributable to ConocoPhillips	$	(3,615)	(3,351)	(152)	(1,042)	4,545	(3,615)
Comprehensive Loss Attributable to ConocoPhillips	$	(3,561)	(3,297)	(27)	(952)	4,276	(3,561)

	Millions of Dollars
	Year Ended December 31, 2015
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	$	-	11,473	-	18,091	-	29,564
Equity in earnings (losses) of affiliates		(4,081)	(1,950)	-	1,364	5,322	655
Gain on dispositions		-	332	-	259	-	591
Other income		-	12	-	113	-	125
Intercompany revenues		74	341	246	3,365	(4,026)	-
Total Revenues and Other Income		(4,007)	10,208	246	23,192	1,296	30,935
Costs and Expenses
Purchased commodities		-	9,905	-	5,838	(3,317)	12,426
Production and operating expenses		-	1,469	-	5,585	(38)	7,016
Selling, general and administrative expenses		9	744	1	209	(10)	953
Exploration expenses		-	2,093	-	2,099	-	4,192
Depreciation, depletion and amortization		-	1,201	-	7,912	-	9,113
Impairments		-	15	-	2,230	-	2,245
Taxes other than income taxes		-	173	-	728	-	901
Accretion on discounted liabilities		-	58	-	425	-	483
Interest and debt expense		485	423	226	447	(661)	920
Foreign currency transaction (gains) losses		114	1	(708)	518	-	(75)
Total Costs and Expenses		608	16,082	(481)	25,991	(4,026)	38,174
Income (loss) before income taxes		(4,615)	(5,874)	727	(2,799)	5,322	(7,239)
Income tax provision (benefit)		(187)	(1,793)	21	(909)	-	(2,868)
Net income (loss)		(4,428)	(4,081)	706	(1,890)	5,322	(4,371)
Less: net income attributable to noncontrolling interests		-	-	-	(57)	-	(57)
Net Income (Loss) Attributable to ConocoPhillips	$	(4,428)	(4,081)	706	(1,947)	5,322	(4,428)
Comprehensive Income (Loss) Attributable to ConocoPhillips	$	(8,773)	(8,426)	71	(6,705)	15,060	(8,773)

		Millions of Dollars
		At December 31, 2017
Balance Sheet		ConocoPhillips	ConocoPhillips Company	ConocoPhillips Canada Funding Company I	All Other Subsidiaries	Consolidating Adjustments	Total Consolidated
Assets
Cash and cash equivalents	$	-	234	4	6,087	-	6,325
Short-term investments		-	-	-	1,873	-	1,873
Accounts and notes receivable		24	2,255	35	4,870	(2,864)	4,320
Investment in Cenovus Energy		-	1,899	-	-	-	1,899
Inventories		-	163	-	897	-	1,060
Prepaid expenses and other current assets		1	278	6	779	(29)	1,035
Total Current Assets		25	4,829	45	14,506	(2,893)	16,512
Investments, loans and long-term receivables*		29,400	47,974	2,533	15,050	(84,897)	10,060
Net properties, plants and equipment		-	4,230	-	41,930	(477)	45,683
Other assets		15	1,146	186	1,302	(1,542)	1,107
Total Assets	$	29,440	58,179	2,764	72,788	(89,809)	73,362
Liabilities and Stockholders’ Equity
Accounts payable	$	-	3,094	1	3,799	(2,864)	4,030
Short-term debt		(5)	2,505	7	77	(9)	2,575
Accrued income and other taxes		-	107	-	931	-	1,038
Employee benefit obligations		-	554	-	171	-	725
Other accruals		85	314	48	612	(30)	1,029
Total Current Liabilities		80	6,574	56	5,590	(2,903)	9,397
Long-term debt		3,787	9,321	1,703	2,794	(477)	17,128
Asset retirement obligations and accrued environmental costs		-	432	-	7,199	-	7,631
Deferred income taxes		-	-	-	6,263	(981)	5,282
Employee benefit obligations		-	1,335	-	519	-	1,854
Other liabilities and deferred credits*		1,528	5,229	926	9,215	(15,629)	1,269
Total Liabilities		5,395	22,891	2,685	31,580	(19,990)	42,561
Retained earnings		22,867	13,317	(681)	11,958	(18,070)	29,391
Other common stockholders’ equity		1,178	21,971	760	29,056	(51,749)	1,216
Noncontrolling interests		-	-	-	194	-	194
Total Liabilities and Stockholders’ Equity	$	29,440	58,179	2,764	72,788	(89,809)	73,362
Balance Sheet	At December 31, 2016
Assets
Cash and cash equivalents	$	-	358	13	3,239	-	3,610
Short-term investments		-	-	-	50	-	50
Accounts and notes receivable		22	1,968	23	6,103	(4,702)	3,414
Inventories		-	84	-	934	-	1,018
Prepaid expenses and other current assets		2	116	8	415	(24)	517
Total Current Assets		24	2,526	44	10,741	(4,726)	8,609
Investments, loans and long-term receivables*		37,901	64,434	2,296	31,643	(114,602)	21,672
Net properties, plants and equipment		-	6,301	-	52,030	-	58,331
Other assets		40	2,194	220	1,240	(2,534)	1,160
Total Assets	$	37,965	75,455	2,560	95,654	(121,862)	89,772
Liabilities and Stockholders’ Equity
Accounts payable	$	-	4,683	1	3,671	(4,702)	3,653
Short-term debt		(10)	999	6	94	-	1,089
Accrued income and other taxes		-	85	-	399	-	484
Employee benefit obligations		-	489	-	200	-	689
Other accruals		171	271	40	536	(24)	994
Total Current Liabilities		161	6,527	47	4,900	(4,726)	6,909
Long-term debt		8,975	12,635	1,710	2,866	-	26,186
Asset retirement obligations and accrued environmental costs		-	925	-	7,500	-	8,425
Deferred income taxes		-	-	-	10,972	(2,023)	8,949
Employee benefit obligations		-	1,901	-	651	-	2,552
Other liabilities and deferred credits*		417	10,391	748	17,832	(27,863)	1,525
Total Liabilities		9,553	32,379	2,505	44,721	(34,612)	54,546
Retained earnings		25,025	14,015	(541)	12,883	(19,834)	31,548
Other common stockholders’ equity		3,387	29,061	596	37,798	(67,416)	3,426
Noncontrolling interests		-	-	-	252	-	252
Total Liabilities and Stockholders’ Equity	$	37,965	75,455	2,560	95,654	(121,862)	89,772
*Includes intercompany loans.

	Millions of Dollars
	Year Ended December 31, 2017
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) Operating Activities	$	71	1,183	(74)	8,931	(3,034)	7,077
Cash Flows From Investing Activities
Capital expenditures and investments		-	(1,663)	-	(3,795)	867	(4,591)
Working capital changes associated with investing activities		-	194	-	(62)	-	132
Proceeds from asset dispositions		7,765	11,146	-	12,796	(17,847)	13,860
Net purchases of short-term investments		-	-	-	(1,790)	-	(1,790)
Long-term advances/loans—related parties		-	(214)	-	(85)	299	-
Collection of advances/loans—related parties		658	1,527	-	2,196	(4,266)	115
Intercompany cash management		1,151	101	-	(1,252)	-	-
Other		-	(8)	-	44	-	36
Net Cash Provided by Investing Activities		9,574	11,083	-	8,052	(20,947)	7,762
Cash Flows From Financing Activities
Issuance of debt		-	20	65	214	(299)	-
Repayment of debt		(5,459)	(4,411)	-	(2,272)	4,266	(7,876)
Issuance of company common stock		115	-	-	-	(178)	(63)
Repurchase of company common stock		(3,000)	-	-	-	-	(3,000)
Dividends paid		(1,305)	(235)	-	(2,977)	3,212	(1,305)
Other		4	(7,765)	-	(9,331)	16,980	(112)
Net Cash Provided by (Used in) Financing Activities		(9,645)	(12,391)	65	(14,366)	23,981	(12,356)
Effect of Exchange Rate Changes on Cash and Cash Equivalents		-	1	-	231	-	232
Net Change in Cash and Cash Equivalents		-	(124)	(9)	2,848	-	2,715
Cash and cash equivalents at beginning of period		-	358	13	3,239	-	3,610
Cash and Cash Equivalents at End of Period	$	-	234	4	6,087	-	6,325
Statement of Cash Flows	Year Ended December 31, 2016
Cash Flows From Operating Activities
Net Cash Provided by (Used in) Operating Activities	$	(306)	(322)	(2)	5,903	(870)	4,403
Cash Flows From Investing Activities
Capital expenditures and investments		-	(989)	-	(4,281)	401	(4,869)
Working capital changes associated with investing activities		-	(126)	-	(205)	-	(331)
Proceeds from asset dispositions		2,300	266	-	1,114	(2,394)	1,286
Net purchases of short-term investments		-	-	-	(51)	-	(51)
Long-term advances/loans—related parties		-	(812)	-	-	812	-
Collection of advances/loans—related parties		-	391	1,250	272	(1,805)	108
Intercompany cash management		(2,214)	1,433	-	781	-	-
Other		-	1	-	(3)	-	(2)
Net Cash Provided by (Used in) Investing Activities		86	164	1,250	(2,373)	(2,986)	(3,859)
Cash Flows From Financing Activities
Issuance of debt		1,600	2,994	-	812	(812)	4,594
Repayment of debt		(150)	(164)	(1,250)	(2,492)	1,805	(2,251)
Issuance of company common stock		148	-	-	-	(211)	(63)
Repurchase of company common stock		(126)	-	-	-	-	(126)
Dividends paid		(1,253)	-	-	(1,081)	1,081	(1,253)
Other		1	(2,315)	-	184	1,993	(137)
Net Cash Provided by (Used in) Financing Activities		220	515	(1,250)	(2,577)	3,856	764
Effect of Exchange Rate Changes on Cash and Cash Equivalents		-	(3)	-	(63)	-	(66)
Net Change in Cash and Cash Equivalents		-	354	(2)	890	-	1,242
Cash and cash equivalents at beginning of period		-	4	15	2,349	-	2,368
Cash and Cash Equivalents at End of Period	$	-	358	13	3,239	-	3,610

	Millions of Dollars
	Year Ended December 31, 2015
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) Operating Activities	$	(225)	245	9	7,519	24	7,572
Cash Flows From Investing Activities
Capital expenditures and investments		-	(3,064)	-	(8,386)	1,400	(10,050)
Working capital changes associated with investing activities		-	(4)	-	(964)	-	(968)
Proceeds from asset dispositions		3,500	826	-	1,225	(3,599)	1,952
Long-term advances/loans—related parties		-	(278)	-	(2,245)	2,523	-
Collection of advances/loans—related parties		-	-	-	205	(100)	105
Intercompany cash management		102	46	-	(148)	-	-
Other		-	304	-	1	1	306
Net Cash Provided by (Used in) Investing Activities		3,602	(2,170)	-	(10,312)	225	(8,655)
Cash Flows From Financing Activities
Issuance of debt		-	4,743	-	278	(2,523)	2,498
Repayment of debt		-	(100)	-	(103)	100	(103)
Issuance of company common stock		283	-	-	(2)	(363)	(82)
Dividends paid		(3,664)	-	-	(339)	339	(3,664)
Other		4	(3,484)	-	1,204	2,198	(78)
Net Cash Provided by (Used in) Financing Activities		(3,377)	1,159	-	1,038	(249)	(1,429)
Effect of Exchange Rate Changes on Cash and Cash Equivalents		-	-	(1)	(181)	-	(182)
Net Change in Cash and Cash Equivalents		-	(766)	8	(1,936)	-	(2,694)
Cash and cash equivalents at beginning of period		-	770	7	4,285	-	5,062
Cash and Cash Equivalents at End of Period	$	-	4	15	2,349	-	2,368