During 2006, we recorded impairments of $496 million associated with planned asset dispositions in our E&P and R&M segments, comprised of properties, plants and equipment ($196 million), trademark intangibles ($70 million), and goodwill ($230 million). In the fourth quarter of 2006, we recorded an impairment of $131 million associated with assets in the Canadian Rockies Foothills area, as a result of declining well performance and drilling results. We recorded a property impairment of $40 million in 2006 as a result of our decision to withdraw an application for a license under the federal Deepwater Port Act, associated with a proposed LNG regasification terminal located offshore Alabama.
In 2005 and 2004, the E&P segment’s impairments were the result of the write-down to market value of properties planned for disposition and properties failing to meet recoverability tests. The Midstream segment recognized property impairments related to planned asset dispositions. In R&M, we reduced the carrying value of certain indefinite-lived intangible assets in 2004. Other impairments in R&M primarily were related to assets planned for disposition.
See Note 4 — Discontinued Operations, for information regarding property impairments included in discontinued operations.
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