(a) Includes an offset for credits in lieu of U.S. federal income taxes allocated to the divisions. Divisional earnings have benefited from credits allocated by $31 million and $4 million at Oil and Gas and Chemical, respectively, in the second quarter of 1999 and by $3 million and $6 million at Oil and Gas and Chemical, respectively, in the second quarter of 1998. The Oil and Gas second quarter of 1999 amount included the results of the pending Bangladesh asset swap which, after tax credits, will not have a significant impact on divisional earnings.
(b) The second quarter and six months of 1999 reflects the partial early extinguishment of 11-1/8percent senior debentures at a redemption price of 105.563 percent of the principal amount. The impact of the early extinguishment is a $3 million charge which is net of a $1 million income tax benefit.
(c) The six months of 1999 reflects the adoption of SOP 98-5 "Reporting on the Costs of Start-Up Activities", which requires expensing of start-up costs as incurred and those costs that are currently capitalized at date of adoption. The impact of SOP 98-5 is a $15 million charge which is net of an $8 million income tax benefit. Also reflects the adoption of EITF 98-10 "Accounting for Contracts Involved in Energy Trading and Risk Management Activities", which requires energy trading contracts to be marked to market. The impact of EITF 98-10 is a $2 million credit which is net of a $1 million income tax charge.