14. Segment Information

Devon manages its business by country. As such, Devon identifies its segments based on geographic areas. Devon has three reportable segments: its operations in the U.S., its operations in Canada, and its international operations outside of North America. Substantially all of these segments' operations involve oil and gas producing activities. Certain information regarding such activities for each segment is included in Note 15.

Following is certain financial information regarding Devon's segments for 2007, 2006 and 2005. The revenues reported are all from external customers

	U.S.			Canada			International			Total
	(In millions)
As of December 31, 2007: Current assets	$	1,601			852			1,461			3,914
Property and equipment, net of accumulated    depreciation, depletion and amortization		18,019			8,909			1,151			28,079
Goodwill		3,049			3,055			68			6,172
Other assets		1,651			49			1,591			3,291
Total assets	$	24,320			12,865			4,271			41,456
Current liabilities	$	2,661			561			435			3,657
Long-term debt		3,948			2,976			—			6,924
Asset retirement obligation, long-term		594			569			73			1,236
Other liabilities		1,137			45			409			1,591
Deferred income taxes		3,980			2,011			51			6,042
Stockholders' equity		12,000			6,703			3,303			22,006
Total liabilities and stockholders' equity	$	24,320			12,865			4,271			41,456

	U.S.			Canada			International			Total
	(In millions)
Year Ended December 31, 2007: Revenues:    Oil sales	$	1,313			804			1,376			3,493
Gas sales		3,742			1,410			11			5,163
NGL sales		773			197			—			970
Marketing and midstream revenues		1,693			43			—			1,736
Total revenues		7,521			2,454			1,387			11,362
Expenses and other income, net:    Lease operating expenses		1,005			654			169			1,828
Production taxes		212			4			124			340
Marketing and midstream operating costs and expenses		1,211			16			—			1,227
Depreciation, depletion and amortization of oil and gas properties		1,672			740			243			2,655
Depreciation and amortization of non-oil and gas properties		180			21			2			203
Accretion of asset retirement obligation		38			32			4			74
General and administrative expenses		399			119			(5	)		513
Interest expense		228			202			—			430
Change in fair value of financial instruments		(32	)		(2	)		—			(34	)
Other income, net		(34	)		(17	)		(47	)		(98	)
Total expenses and other income, net		4,879			1,769			490			7,138
Earnings from continuing operations before income tax expense (benefit)		2,642			685			897			4,224
Income tax expense (benefit):    Current		100			135			265			500
Deferred		773			(166	)		(29	)		578
Total income tax expense (benefit)		873			(31	)		236			1,078
Earnings from continuing operations		1,769			716			661			3,146
Discontinued operations:    Earnings from discontinued operations before income taxes		—			—			696			696
Income tax expense		—			—			236			236
Earnings from discontinued operations		—			—			460			460
Net earnings		1,769			716			1,121			3,606
Preferred stock dividends		10			—			—			10
Net earnings applicable to common stockholders	$	1,759			716			1,121			3,596
Capital expenditures, continuing operations	$	4,522			1,350			455			6,327

	U.S.			Canada			International			Total
	(In millions)
As of December 31, 2006: Current assets	$	1,307			616			1,289			3,212
Property and equipment, net of accumulated    depreciation, depletion and amortization		15,253			6,929			974			23,156
Goodwill		3,053			2,585			68			5,706
Other assets		1,289			35			1,665			2,989
Total assets	$	20,902			10,165			3,996			35,063
Current liabilities	$	3,693			569			383			4,645
Long-term debt		2,594			2,974			—			5,568
Asset retirement obligation, long-term		387			360			57			804
Other liabilities		864			16			434			1,314
Deferred income taxes		3,351			1,831			108			5,290
Stockholders' equity		10,013			4,415			3,014			17,442
Total liabilities and stockholders' equity	$	20,902			10,165			3,996			35,063

	U.S.			Canada			International			Total
	(In millions)
Year Ended December 31, 2006: Revenues:    Oil sales	$	1,218			603			613			2,434
Gas sales		3,445			1,456			11			4,912
NGL sales		548			201			—			749
Marketing and midstream revenues		1,641			31			—			1,672
Total revenues		6,852			2,291			624			9,767
Expenses and other income, net:    Lease operating expenses		813			543			69			1,425
Production taxes		235			7			99			341
Marketing and midstream operating costs and expenses		1,226			10			—			1,236
Depreciation, depletion and amortization of oil and gas properties		1,311			644			103			2,058
Depreciation and amortization of non-oil and gas properties		154			18			1			173
Accretion of asset retirement obligation		25			21			1			47
General and administrative expenses		316			92			(11	)		397
Interest expense		199			222			—			421
Change in fair value of financial instruments		181			(3	)		—			178
Reduction of carrying value of oil and gas properties		—			—			36			36
Other income, net		(43	)		(14	)		(58	)		(115	)
Total expenses and other income, net		4,417			1,540			240			6,197
Earnings from continuing operations before income tax expense		2,435			751			384			3,570
Income tax expense (benefit):    Current		299			143			86			528
Deferred		533			(105	)		(20	)		408
Total income tax expense		832			38			66			936
Earnings from continuing operations		1,603			713			318			2,634
Discontinued operations:    Earnings from discontinued operations before income taxes		—			—			464			464
Income tax expense		—			—			252			252
Earnings from discontinued operations		—			—			212			212
Net earnings		1,603			713			530			2,846
Preferred stock dividends		10			—			—			10
Net earnings applicable to common stockholders	$	1,593			713			530			2,836
Capital expenditures, continuing operations	$	5,814			1,670			405			7,889

	U.S.			Canada			International			Total
	(In millions)
Year Ended December 31, 2005: Revenues:    Oil sales	$	1,062			353			379			1,794
Gas sales		3,929			1,814			18			5,761
NGL sales		484			196			—			680
Marketing and midstream revenues		1,780			12			—			1,792
Total revenues		7,255			2,375			397			10,027
Expenses and other income, net:    Lease operating expenses		710			498			36			1,244
Production taxes		273			6			56			335
Marketing and midstream operating costs and expenses		1,336			6			—			1,342
Depreciation, depletion and amortization of oil and gas properties		1,137			570			60			1,767
Depreciation and amortization of non-oil and gas properties		141			14			2			157
Accretion of asset retirement obligation		25			16			1			42
General and administrative expenses		245			59			(13	)		291
Interest expense		224			309			—			533
Change in fair value of financial instruments		86			8			—			94
Reduction of carrying value of oil and gas properties		—			—			42			42
Other income, net		(176	)		(10	)		(12	)		(198	)
Total expenses and other income, net		4,001			1,476			172			5,649
Earnings from continuing operations before income tax expense		3,254			899			225			4,378
Income tax expense (benefit):    Current		837			106			90			1,033
Deferred		253			217			(22	)		448
Total income tax expense		1,090			323			68			1,481
Earnings from continuing operations		2,164			576			157			2,897
Discontinued operations:    Earnings from discontinued operations before income taxes		—			—			173			173
Income tax expense		—			—			140			140
Earnings from discontinued operations		—			—			33			33
Net earnings		2,164			576			190			2,930
Preferred stock dividends		10			—			—			10
Net earnings applicable to common stockholders	$	2,154			576			190			2,920
Capital expenditures, continuing operations	$	2,200			1,707			88			3,995