Discontinued Operations - Downstream Businesses

6 Months Ended

Jun. 30, 2013

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations - Downstream Businesses

2. Discontinued Operations — Downstream Businesses

As a result of the Corporation’s plans to divest its downstream businesses, the results of operations for these businesses have been reported as discontinued operations in the Statement of Consolidated Income and the related assets and liabilities have been classified as held for sale at June 30, 2013 in the Consolidated Balance Sheet. The downstream businesses were previously included in the Marketing and Refining segment.

Sales and other operating revenues and Income (loss) from discontinued operations for the downstream businesses were as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2013		2012			2013		2012
	(In millions)
Sales and other operating revenues	$	5,652	$	5,991		$	13,065	$	12,791
Income (loss) from discontinued operations before income taxes	$	31	$	(6	)	$	175	$	24
Provision (benefit) for income taxes		4		(1	)		58		8
Income (loss) from discontinued operations, net of income taxes		27		(5	)		117		16
Less: Net income (loss) attributable to noncontrolling interests		16		(17	)		6		(8	)
Net income (loss) from discontinued operations attributable to Hess Corporation	$	11	$	12		$	111	$	24

The following table presents the assets and liabilities of the discontinued downstream businesses that are classified as held for sale (in millions):

	June 30, 2013
Accounts receivable	$	2,138
Inventories		605
Investment in affiliates		177
Property, plant and equipment, net		1,221
Other assets		156
Total assets	$	4,297
Accounts payable and accrued liabilities	$	2,122
Other liabilities and deferred credits		130
Total liabilities	$	2,252

The inventories of the downstream businesses consisted of $1,304 million of refined petroleum products and natural gas, less a last-in, first out (LIFO) adjustment of $801 million, and $102 million of merchandise. As a result of the cessation of refining operations at the Port Reading facility, in the first quarter of 2013, the Corporation recognized a gain of $218 million ($137 million after income taxes) relating to the liquidation of LIFO inventories and recorded additional depreciation of $80 million. The LIFO gain and additional depreciation were included in Income (loss) from discontinued operations.