Discontinued Operations - Downstream Businesses

9 Months Ended

Sep. 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 September 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 from discontinued operations for the downstream businesses were as follows:

	Three Months  Ended September 30,					Nine Months  Ended September 30,
	2013			2012		2013		2012
	(In millions)
Sales and other operating revenues	$	5,368		$	6,138	$	18,433	$	18,929
Income from discontinued operations before income taxes	$	84		$	113	$	259	$	137
Provision for income taxes		32			31		90		39
Income from discontinued operations, net of income taxes		52			82		169		98
Less: Net income (loss) attributable to noncontrolling interests		(2	)		29		4		21
Net income from discontinued operations attributable to Hess Corporation	$	54		$	53	$	165	$	77

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

	September 30,
	2013
Accounts receivable	$	1,931
Inventories		469
Investment in affiliate		182
Property, plant and equipment — net		1,265
Other assets		125
Total assets	$	3,972
Accounts payable and accrued liabilities	$	1,889
Other liabilities and deferred credits		148
Total liabilities	$	2,037

At September 30, 2013, the inventories of the downstream businesses consisted of $1,040 million of refined petroleum products and natural gas, less a last-in, first-out (LIFO) adjustment of $689 million, and $118 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 pre-tax gain of $218 million ($137 million after income taxes) relating to the liquidation of LIFO inventories and recorded additional depreciation of $80 million. In the third quarter of 2013, the Corporation also recognized a pre-tax gain of $228 million ($143 million after income taxes) relating to the liquidation of LIFO inventories in conjunction with its ongoing divestiture program. The LIFO gains and additional depreciation have been included in Income from discontinued operations.