v3.19.3.a.u2
Change in Accounting Priniciples
 12 Months Ended
Dec. 31, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
New Accounting Standards [Text Block]
Note 2—Changes in Accounting Principles
 
We adopted the provisions of FASB ASU No. 2016-02, “Leases,” (ASC Topic 842) and its amendments,
beginning January 1, 2019.
 
ASC Topic 842 establishes comprehensive accounting and financial reporting
requirements for leasing arrangements, supersedes
 
the existing requirements in FASB ASC Topic 840,
“Leases” (ASC Topic 840), and requires lessees to recognize substantially
 
all lease assets and lease liabilities
on the balance sheet.
 
The provisions of ASC Topic 842 also modify the definition of a lease
 
and outline
requirements for recognition, measurement, presentation
 
and disclosure of leasing arrangements by
 
both
lessees and lessors.
 
 
We adopted ASC Topic
 
842 using the modified retrospective
 
approach and elected to utilize the Optional
Transition Method, which permits us to apply the provisions
 
of ASC Topic 842 to leasing arrangements
existing at or entered into after January 1, 2019,
 
and present in our financial statements comparative
 
periods
prior to January 1, 2019 under the historical
 
requirements of ASC Topic 840.
 
In addition, we elected to adopt
the package of optional transition-related practical
 
expedients, which among other things, allows us to
 
carry
forward certain historical conclusions reached
 
under ASC Topic 840 regarding lease identification,
classification, and the accounting treatment
 
of initial direct costs.
 
Furthermore, we elected not to record assets
and liabilities on our consolidated balance sheet
 
for new or existing lease arrangements
 
with terms of 12
months or less.
 
The primary impact of applying ASC Topic 842 is the initial recognition
 
of $
998
 
million of lease liabilities and
corresponding right-of-use assets on our consolidated
 
balance sheet as of January 1, 2019, for leases
 
classified
as operating leases under ASC Topic 840, as well as enhanced disclosure of our leasing
 
arrangements.
 
Our
accounting treatment for finance leases remains
 
unchanged.
 
In addition, there is no cumulative effect to
retained earnings or other components of equity
 
recognized as of January 1, 2019, and the adoption
 
of ASC
Topic 842 did not impact the presentation of our consolidated income statement
 
or statement of cash flows.
 
See Note 17—Non-Mineral Leases for additional
 
information related to the adoption of ASC Topic 842.
 
We adopted the provisions of FASB ASU No. 2018-02, “Reclassification of Certain Tax Effects from
Accumulated Other Comprehensive Income,”
 
beginning January 1, 2019.
 
The ASU allows a reclassification
from accumulated other comprehensive income
 
to retained earnings for stranded tax effects resulting
 
from the
Tax Cuts and Jobs Act, eliminating the stranded tax effects.
 
The cumulative effect to our consolidated balance
sheet at January 1, 2019 for the adoption of
 
ASU No. 2018-02 was as follows:
Millions of Dollars
Note 26—New Accounting Standards
 
In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on
 
Financial Instruments”
(ASU No. 2016-13), which sets forth the current
 
expected credit loss model, a new forward-looking
impairment model for certain financial instruments
 
based on expected losses rather than incurred losses.
 
The
ASU is effective for interim and annual periods beginning
 
after December 15, 2019.
 
Entities are required to
adopt ASU No. 2016-13 using a modified retrospective
 
approach, subject to certain limited exceptions.
 
The
impact
 
of adopting this ASU is not expected to be material
 
to our financial statements.