Note O – Other Financial Information

DEEPWATER RIG CONTRACT EXIT COSTS – At year-end 2015, the Company had two deepwater drilling rigs in the Gulf of Mexico under contract that were scheduled to expire in February and November 2016. In the face of low commodity prices, a significant reduction in the Company’s overall 2016 capital spending program and lack of interest by working interest partners and others to participate in drilling opportunities in 2016, the Company idled and stacked both rigs during the fourth quarter of 2015. The Company reported a pretax charge to earnings in 2015 totaling $282,001,000 that included both the costs incurred in 2015 during which the rigs were idle and stacked together with the remaining day rate commitments due under the contracts in 2016. The contract originally scheduled to expire in November 2016 was terminated by the Company. The Company paid approximately $266,700,000 related to these contracts in 2016 and reported a pretax benefit to earnings in 2016 totaling $4,330,000 for the final settlement of the contracts at less than the recorded costs.

GAIN FROM FOREIGN CURRENCY TRANSACTIONS – Net gains from foreign currency transactions, including the effects of foreign currency contracts, included in the Consolidated Statements of Operations were $59,731,000 in 2016, $87,961,000 in 2015 and $40,596,000 in 2014.

Noncash operating working capital (increased) decreased during each of the three years ended December 31, 2016 as shown in the following table.



(Thousands of dollars)	2016		2015	2014
Accounts receivable	$	119,671	297,625	175,820
Inventories		(5,171)	(15,340)	25,697
Prepaid expenses		149,946	(144,845)	6,575
Deferred income tax assets		-	3,924	6,884
Accounts payable and accrued liabilities		(328,078)	(36,887)	(54,785)
Current income tax liabilities		24,943	(69,413)	(163,920)
Net (increase) decrease in noncash operating working capital	$	(38,689)	35,064	(3,729)
Supplementary disclosures (including discontinued operations):
Cash income taxes paid, net of refunds	$	6,707	118,667	573,799
Interest paid, net of amounts capitalized		127,798	110,386	114,232

Noncash investing activities, related to continuing operations:
Asset retirement costs capitalized	$	13,690	76,775	70,568
Decrease in capital expenditure accrual		158,885	462,474	93,080