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ASSET RETIREMENT OBLIGATION
 12 Months Ended
Dec. 31, 2017
Asset Retirement Obligation Disclosure [Abstract]  
ASSET RETIREMENT OBLIGATION
ASSET RETIREMENT OBLIGATION
The following table describes changes to the Company’s asset retirement obligation (ARO) liability for the years ended December 31, 2017 and 2016:
 
 
 
2017
 
2016
 
 
(In millions)
Asset retirement obligation at beginning of year
 
$
2,498

 
$
2,598

Liabilities incurred
 
58

 
41

Liabilities divested
 
(818
)
 
(7
)
Liabilities settled
 
(45
)
 
(57
)
Accretion expense
 
130

 
156

Revisions in estimated liabilities
 
12

 
(233
)
Asset retirement obligation at end of year
 
1,835

 
2,498

Less current portion
 
(43
)
 
(66
)
Asset retirement obligation, long-term
 
$
1,792

 
$
2,432


The ARO liability reflects the estimated present value of the amount of dismantlement, removal, site reclamation, and similar activities associated with Apache’s oil and gas properties. The Company utilizes current retirement costs to estimate the expected cash outflows for retirement obligations. The Company estimates the ultimate productive life of the properties, a risk-adjusted discount rate, and an inflation factor in order to determine the current present value of this obligation. To the extent future revisions to these assumptions impact the present value of the existing ARO liability, a corresponding adjustment is made to the oil and gas property balance.

During 2017 and 2016, the Company recorded $58 million and $41 million, respectively, in abandonment liabilities resulting from Apache’s exploration and development capital program. Liabilities divested primarily relate to Canada. Liabilities settled primarily relate to individual properties, platforms, and facilities plugged and abandoned during the period. During 2017, approximately $12 million of abandonment costs were revised upward to reflect changes in estimates of timing and costs in the U.S. and North Sea. During 2016, approximately $233 million of abandonment costs were revised downward, primarily in the North Sea.