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These excerpts taken from the DVN 10-K filed Jun 9, 2008. Other
Income
We estimate that our other income in 2008 will be between
$55 million and $75 million.
As of the end of 2007, we had received insurance claim
settlements related to the 2005 hurricanes that were
$150 million in excess of amounts incurred to repair
related damages. None of this $150 million excess has been
recognized as income, pending the resolution of the amount of
future necessary repairs and the settlement of certain claims
that have been filed with secondary insurers. Based on the most
recent estimates of our costs for repairs, we believe that some
amount will ultimately be recorded as other income. However, the
timing and amount that would be recorded as other income are
uncertain. Therefore, the 2008 estimate for other income above
does not include any amount related to hurricane proceeds.
Other Income We estimate that our other income in 2008 will be between $55 million and $75 million. As of the end of 2007, we had received insurance claim settlements related to the 2005 hurricanes that were $150 million in excess of amounts incurred to repair related damages. None of this $150 million excess has been recognized as income, pending the resolution of the amount of future necessary repairs and the settlement of certain claims that have been filed with secondary insurers. Based on the most recent estimates of our costs for repairs, we believe that some amount will ultimately be recorded as other income. However, the timing and amount that would be recorded as other income are uncertain. Therefore, the 2008 estimate for other income above does not include any amount related to hurricane proceeds. These excerpts taken from the DVN 10-K filed Feb 28, 2008. Other
Income
We estimate that our other income in 2008 will be between
$55 million and $75 million.
As of the end of 2007, we had received insurance claim
settlements related to the 2005 hurricanes that were
$150 million in excess of amounts incurred to repair
related damages. None of this $150 million excess has been
recognized as income, pending the resolution of the amount of
future necessary repairs and the settlement of certain claims
that have been filed with secondary insurers. Based on the most
recent estimates of our costs for repairs, we believe that some
amount will ultimately be recorded as other income. However, the
timing and amount that would be recorded as other income are
uncertain. Therefore, the 2008 estimate for other income above
does not include any amount related to hurricane proceeds.
Other Income We estimate that our other income in 2008 will be between $55 million and $75 million. As of the end of 2007, we had received insurance claim settlements related to the 2005 hurricanes that were $150 million in excess of amounts incurred to repair related damages. None of this $150 million excess has been recognized as income, pending the resolution of the amount of future necessary repairs and the settlement of certain claims that have been filed with secondary insurers. Based on the most recent estimates of our costs for repairs, we believe that some amount will ultimately be recorded as other income. However, the timing and amount that would be recorded as other income are uncertain. Therefore, the 2008 estimate for other income above does not include any amount related to hurricane proceeds. This excerpt taken from the DVN 10-K filed Feb 28, 2007. Other
Income
We estimate that our other income in 2007 will be between
$65 million and $85 million.
Historically, we maintained a comprehensive insurance program
that included coverage for physical damage to our offshore
facilities caused by hurricanes. Our historical insurance
program also included substantial business interruption coverage
which we are utilizing to recover costs associated with the
suspended production related to hurricanes that struck the Gulf
of Mexico in the third quarter of 2005.
Based on current estimates of physical damage and the
anticipated length of time we will have production suspended, we
expect our policy recoveries will exceed repair costs and
deductible amounts. This expectation is based upon several
variables, including the $467 million received in the third
quarter of 2006 as a full settlement of the amount due from our
primary insurers. As of December 31, 2006,
$154 million of these proceeds had been utilized as
reimbursement of past repair costs and deductible amounts. The
remaining proceeds of $313 million will be utilized as
reimbursement of our anticipated future repair costs. We have
not yet received any settlements related to claims filed with
our secondary insurers.
Should our total policy recoveries, including the partial
settlements already received from our primary insurers, exceed
all repair costs and deductible amounts, such excess will be
recognized as other income in the statement of operations in the
period in which such determination can be made. Based on the
most recent estimates of our costs for repairs, we believe that
some amount will ultimately be recorded as other income.
However, the timing and amount that would be recorded as other
income are uncertain. Therefore, the 2007 estimate for other
income above does not include any amount related to hurricane
proceeds.
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