We are an independent oil and natural gas exploration and production company operating properties exclusively within the State of California. We were incorporated in Delaware as a wholly owned subsidiary of Occidental Petroleum Corporation (Occidental) on April 23, 2014, and remained a wholly owned subsidiary of Occidental until November 30, 2014. Prior to November 30, 2014, all material existing assets, operations and liabilities of Occidental's California business were consolidated under us. On November 30, 2014, Occidental distributed shares of our common stock on a pro ratapro-rata basis to Occidental stockholders and we became an independent, publicly traded company (the Spin-off). Occidental initially retained approximately 18.5% of our outstanding shares of common stock, which it distributed to Occidental stockholders on March 24, 2016.

Except when the context otherwise requires or where otherwise indicated, (1) all references to ‘‘CRC,’’ the ‘‘Company,company,’’ ‘‘we,’’ ‘‘us’’ and ‘‘our’’ refer to California Resources Corporation and its subsidiaries or the California business, (2) all references to the ‘‘California business’’ refer to Occidental’s California oil and gas exploration and production operations and related assets, liabilities and obligations, which we have assumed in connection with the Spin-off, and (3) all references to ‘‘Occidental’’ refer to Occidental Petroleum Corporation, our former parent, and its subsidiaries.

In the opinion of our management, the accompanying financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to fairly present our financial position as of September 30, 2016March 31, 2017 and the statements of operations, comprehensive income, and cash flows for the three and nine months ended September 30,March 31, 2017 and 2016, and 2015, as applicable. We have eliminated all of our significant intercompany transactions and accounts.

We have prepared this report pursuant to the rules and regulations of the United States (U.S.) Securities and Exchange Commission applicable to interim financial information, which permit omission of certain disclosures to the extent they have not changed materially since the latest annual financial statements. We believe our disclosures are adequate to make the information not misleading. This Form 10-Q should be read in conjunction with the consolidated and combined financial statements and the notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2015.2016.

Other current assets, net at September 30, 2016March 31, 2017 and December 31, 20152016 included amounts due from joint interest partners, net, of approximately $36$42 million and $42$51 million and derivative assets from commodities contracts of $25$34 million and $88$39 million, respectively.

Other assetsAccrued liabilities at March 31, 2017 and December 31, 2015 included deferred tax assets of approximately $258 million (none at September 30, 2016).

Other long-term liabilities included asset retirement obligations of $332$402 million and $343$397 million at September 30, 2016March 31, 2017 and December 31, 2015,2016, respectively.

At September 30,March 31, 2017, deferred gain and issuance costs were $382 million net, consisting of $471 million of deferred gains offset by $89 million of deferred issuance costs and original issue discounts. The December 31, 2016 deferred gain and issuance costs were $410$397 million net, consisting of $507$489 million of deferred gains offset by $97$92 million of deferred issuance costs. The December 31, 2015 deferred gaincosts and issuance costs were $491 million net, consisting of $560 million of deferred gains offset by $69 million of deferred issuance costs.

Our first lien, first outfirst-lien, first-out credit facilityfacilities (2014 First OutFirst-Out Credit Facilities) comprisescomprise (i) a $671$609 million senior term loan facility (the Term Loan Facility) and (ii) a $1.4 billion senior revolving loan facility (the Revolving Credit Facility). We are permitted to increase the size of the Revolving Credit Facility by up to $250 million if we obtain additional commitments from new or existing lenders. The facility maturesRevolving Credit Facility includes a sub-limit of $400 million for the issuance of letters of credit. Our credit limit under the 2014 First-Out Credit Facilities is $2.01 billion. Borrowings under these facilities are also subject to a borrowing base, which was reaffirmed at $2.3 billion as of May 1, 2017.

As of March 31, 2017 and December 31, 2016, we had outstanding borrowings of $769 million and $847 million under our Revolving Credit Facility, and $609 million and $650 million under the Term Loan Facility, respectively. In each of the quarters ended March 31, 2017 and 2016, we made a $25 million scheduled quarterly payment on the Term Loan Facility. Additionally, in February 2016,2017, we made a $16 million Term Loan Facility prepayment from the proceeds of non-core asset sales.

In February 2017, we amended the 2014 First OutFirst-Out Credit Facilities to change certain of our financial and other covenants. We again amended this agreement in April 2016 to facilitate certain types of deleveragingadditional joint venture transactions and in August 2016 to further change certain ofnote repurchases, eliminate our covenants, grant additional collateral to our lenderscapital expenditure restriction and permit the incurrence of debt underadopt a new first-lien, second-out term loan credit facility (2016 Second Out Credit Agreement). Borrowings under the 2014 First Out Credit Facility are subject to a borrowing base that was reaffirmed at $2.3 billion as of November 2016. minimum liquidity covenant.

We have granted the lenders under the 2014 First OutFirst-Out Credit Facilities a first-priority lien in a substantial majority of our assets, including our Elk Hills power plant and midstream assets. We also granted a lien in the same assets to the lenders under our 2016 Second Outfirst-lien, second-out term loan credit facility (2016 Second-Out Credit AgreementAgreement) and the holders of our 8% senior second lien secured second-lien notes due in 2022.December 15, 2022 (2022 notes).

Borrowings under the 2014 First OutFirst-Out Credit Facilities bear interest, at our election, at either a LIBOR rate or an alternate base rate (ABR) (equal to the greatesthighest of (i) the administrative agent’s prime rate, (ii) the one-month LIBOR rate plus 1.00% and (iii) the federal funds effective rate plus 0.50%, (ii) the administrative agent’s prime rate and (iii) the one-month LIBOR rate plus 1.00%), in each case plus an applicable margin. This applicable margin is based, while our total leverage ratio exceeds 3.00:1.00, on our borrowing base utilization and will vary from (a) in the case of LIBOR loans, 2.50% to 3.50% and (b) in the case of ABR loans, 1.50% to 2.50%. The unused portion of the Revolving Credit Facility commitments as limited by the borrowing base, is subject to a commitment fee equal to 0.50% per annum. We also pay customary fees and expenses under the 2014 First OutFirst-Out Credit Facilities. Interest on ABR loans is payable quarterly in arrears.  Interest on LIBOR loans is payable at the end of each LIBOR period, but not less than quarterly.

Our financial performance covenants under the 2014 First OutFirst-Out Credit Facilities require that (i) the ratio of our first priority, first outfirst-lien, first-out secured debt to trailing four quarter EBITDAX (the First-Lien First-Out Leverage Ratio) not exceed 3.50 to 1.00 at any quarter end through the quarter endingMarch 31 and June 30, 2017 and 3.25 to 1.00 for the quarters endingat September 30 and December 31, 2017 and (ii) the total interest expense coverage ratio at each quarter end not be less than 1.20 to 1.00 at any quarter end through the quarter ending December 31, 2017. StartingBeginning with the end of the first quarter of 2018, the First-Lien First-Out Leverage Ratio may not exceed 2.25 to 1.00 and the total interest expense coverage ratio may not be less than 2.00 to 1.00. The covenants also include a newrequirement that our first-lien asset coverage ratio ofmust be at least 1.20 to 1.00 as of anyeach June 30 and December 31 beginning Decemberand a requirement that minimum monthly liquidity be not less than $250 million as of the last day of any calendar month. As of March 31, 2016, which is consistent with a covenant included in2017, we had approximately $500 million of available borrowing capacity, subject to the 2016 Second Out Credit Agreement described below.minimum liquidity requirement.

Our borrowing base under the 2014 First OutFirst-Out Credit Facilities is redetermined each May 1 and November 1. The borrowing base will beis based upon a number of factors, including commodity prices and reserves. Increases in our borrowing base require approval of at least 80% of our revolving lenders, as measured by exposure, while decreases or affirmations require a two-thirds approval. We and the lenders (requiring a request from the lenders holding two-thirds of the revolving commitments and outstanding loans) each may request a special redetermination once in any period between three consecutive scheduled redeterminations. We will be permitted to have collateral released when both (i) our credit ratings are at least Baa3 from Moody's and BBB- from S&P, in each case with a stable or better outlook, and (ii) certain permitted liens securing other debt are released.

In August 2016, we entered into a $1 billion 2016 Second-Out Credit Agreement. The net borrowings under the 2016 Second OutSecond-Out Credit Agreement were used to (i) prepay $250 million of the Term Loan Facility and (ii) reduce our Revolving Credit Facility by $740 million. The proceeds received were net of a $10 million original issue discount. The term loans bearloan under the 2016 Second-Out Credit Agreement bears interest at a floating rate per annum equal to 10.375%LIBOR plus LIBOR,10.375%, subject to a 1.00% LIBOR floor, determined for the applicable interest period (or ABR rates plus 9.375% in certain circumstances). Interest on ABR loans is payable quarterly in arrears. Interest on LIBOR loans is payable at the end of each LIBOR period, but not less than quarterly. Interest on ABR loans is payable quarterly in arrears.

The 2016 Second OutSecond-Out Credit Agreement is secured by a security interest in the same collateral used to secure the 2014 First OutFirst-Out Credit Facilities, but, under intercreditor arrangements with ourthe 2014 First OutFirst-Out Credit Facilities lenders, are second in collateral recovery behind such lenders. Prepayment of the 2016 Second OutSecond-Out Credit Agreement is subject to a make-whole premium prior to the third anniversary of closing and a premium to par equal to 50% of coupon between the third anniversary and the fourth anniversary. Following the fourth anniversary, we may redeem at par. The 2016 Second Out Credit Agreement matures onAt both March 31, 2017 and December 31, 2021, but if the aggregate principal amount outstanding of either our 2020 Notes or our 5½% senior unsecured notes due September 15, 2021 (the 2021 Notes) exceeds $100 million 91 days prior to their respective maturity dates, the maturity date of the term loans will accelerate to such prior 91st day. As of September 30, 2016, we had $193 million and $149 million in aggregate principal amount of$1 billion outstanding 2020 notes and 2021 notes, respectively.under the 2016 Second-Out Credit Agreement.

The 2016 Second OutSecond-Out Credit Agreement provides for customary covenants and events of default consistent with, or generally less restrictive than, the covenants in ourthe 2014 First OutFirst-Out Credit Facilities, including limitations on additional indebtedness, liens, asset dispositions, investments and restricted payments and other negative covenants, in each case subject to certain limitations and exceptions. Additionally, the 2016 Second OutSecond-Out Credit Agreement requires us to maintain a first-lien asset coverage ratio of 1.20 to 1.00 as of any June 30 and December 31, beginning December 31, 2016, consistent with the 2014 First OutFirst-Out Credit Facilities.

In October 2014, we issued $5.00$5 billion in aggregate principal amount of our senior unsecured notes, including $1.00$1 billion of 2020 notes, $1.75 billion of 2021 notes and $2.25 billion of 6% senior unsecured notes due November 15, 2024 (the 2024(2024 notes, and together with the 2020 notes and the 2021 notes,collectively, the unsecured notes). The unsecured notes were issued at par and are fully and unconditionally guaranteed on a senior unsecured basis by all of our material subsidiaries. We used the net proceeds from the issuance of the unsecured notes to make a $4.95 billion cash distribution to Occidental in October 2014.

In December 2015, we exchanged $534 million, $921 million and $1,358 million in aggregate principal amount of the 2020 notes, the 2021 notes, and the 2024 notes, respectively, forissued $2.25 billion in aggregate principal amount of newly issued 8% senior secured second lienour 2022 notes due December 15, 2022 (the 2022 notes).which we exchanged for $2.8 billion of our outstanding unsecured notes. We recorded a deferred gain of approximately $560 million on the debt exchange, which will be amortized using the effective interest rate method over the term of the 2022 notes. Additionally, we incurred approximately $28 million in third-party costs which were fully expensed in 2015. The secondOur 2022 notes are secured on a second-priority basis, subject to the terms of an intercreditor agreement and collateral trust agreement, by a lien on the same collateral used to secure our obligations under ourthe 2014 First-Out Credit Facilities.Facilities and 2016 Second-Out Credit Agreement (collectively, the Credit Facilities).

DuringIn December 2015, we repurchased approximately $33 million in principal amount of the three months ended March 31,2020 notes for $13 million in cash.

In 2016, we repurchased over $100 million in aggregate principal amount$1.5 billion of the seniorour outstanding unsecured notes, for under $13primarily using drawings of $750 million in cash. During the three months ended June 30, 2016, we entered into privately negotiated exchange agreements with a holder ofon our 6% Senior Notes due 2024Revolving Credit Facility and our 5 ½% Senior Notes due 2021 to exchange a total ofcash from operations. We also exchanged approximately 2.13.4 million shares of our common stock on a post-split basis for unsecured notes in thean aggregate principal amount of $80over $100 million.

In August 2016the first quarter of 2017, we repurchased $197 million, $605 million and $613$28 million in aggregate principal amount of our 2020 notes 2021 notes and 2024 notes, respectively, for $750$24 million, resulting in a $660$4 million pre-tax gain, net of related expenses. Additionally, we wrote off approximately $12The first quarter of 2016 included an $89 million of deferred costs related topre-tax gain resulting from the repurchased notes.

We will pay interest semiannually in cash in arrears on January 15 and July 15 for the 2020 notes, on March 15 and September 15 for the 2021 notes, on June 15 and December 15 for the 2022 notes and on May 15 and November 15 for the 2024 notes.

The indentures governing the senior unsecured notes and the second lien secured2022 notes each include covenants that, among other things, limit our and our subsidiaries’ ability to incur debt secured by liens. The indentures also restrict our ability to merge or consolidate with, or transfer all or substantially all of our assets to, another entity. These covenants are subject to a number of important qualifications and limitations that are set forth in the indenture. The covenants are not, however, directly linked to measures of our financial performance. In addition, if we experience a “change of control triggering event” (as defined in the indentures) with respect to a series of notes, we will be required, unless we have exercised our right to redeem the notes of such series, to offer to purchase the notes of such series at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest. The indenture governing our second lien securedthe 2022 notes also restricts our ability to sell certain assets and to release collateral from liens securing the second lien secured2022 notes, unless the collateral is released in compliance with ourthe 2014 First-Out Credit Facilities.

We estimate the fair value of fixed-rate debt, which is classified as Level 1, based on prices from known market transactions for our instruments. The estimated fair value of our debt at September 30, 2016March 31, 2017 and December 31, 2015,2016, including the fair value of the variable rate portion, was approximately $4.3$4.6 billion and $3.6$4.9 billion, respectively, compared to a carrying value of approximately $5.2$5.1 billion and $6.1$5.3 billion. A one-eighth percent change in the variable interest rates on the borrowings under our Credit Facilities on September 30, 2016,March 31, 2017 would result in a $3 million change in annual interest expense.

We, or certain of our subsidiaries, are involved, in the normal course of business, in lawsuits, environmental and other claims and other contingencies that seek, among other things, compensation for alleged personal injury, breach of contract, property damage or other losses, punitive damages, civil penalties, or injunctive or declaratory relief.

On April 21, 2016, aThe previously disclosed purported class action was filed against us in the United States District Court for the Southern District of New York on behalf of all beneficial owners of our unsecured notes from November 12, 2015relating to the present.  The complaint alleges that our December 2015 debt exchange excluded non-qualified institutional holders in violation of the Trust Indenture Act of 1939 and related law and, thereby, impaired their rights to receive principal and interest payments.  The purported class action seeks declaratory relief that the debt exchange and the liens securing the new notes are null and void and that the debt exchange resultedwas dismissed in a default.  The plaintiff also seeks monetary damages and attorneys’ fees.  The Company plans to vigorously defend against the claims made by the plaintiff.April 2017.

We accrue reserves for currently outstanding lawsuits, claims and proceedings when it is probable that a liability has been incurred and the liability can be reasonably estimated. ReservesReserve balances at September 30, 2016March 31, 2017 and December 31, 20152016 were not material to our balance sheets as of such dates. We also evaluate the amount of reasonably possible losses that we could incur as a result of these matters. We believe that reasonably possible losses that we could incur in excess of reserves accrued on our balance sheet would not be material to our consolidated financial position or results of operations.

We, our subsidiaries, or both, have indemnified various parties against specific liabilities those parties might incur in the future in connection with the Spin-off, purchases and other transactions that they have entered into with us. These indemnities include indemnities made to Occidental against certain tax-related liabilities that may be incurred by Occidental relating to the Spin-off and liabilities related to operation of our business while it was still owned by Occidental. As of September 30, 2016,March 31, 2017, we are not aware of material indemnity claims pending or threatened against the Company.company.

We were contactedare currently under examination by the Internal Revenue Service for examination of our U.S. federal income tax return for the one month ended December 2014. Subsequent taxablepost-Spin-off period in 2014 and calendar year 2015. No significant issues have been raised to date. State returns for these years and state returns remain subject to examination.

We use a variety of derivative instruments to protect our cash flows, margins and capital investment program from the cyclical nature of commodity prices and to improve our ability to comply with the covenants of our credit facility covenantsfacilities in case of further price deterioration. We will continue to be strategic and opportunistic in implementing our hedging program as market conditions permit.

During the nine months ended September 30,On May 31, 2016, we entered into privately negotiated exchange agreements withcompleted a holderreverse stock split using a ratio of our 6% Senior Notes due 2024 and our 5 ½% Senior Notes due 2021 to exchange a totalone share of approximately 2.1 million shares of our common stock on a post-split basis for notes in the aggregate principal amount of $80 million. In October 2016, we entered into privately negotiated exchange agreements with certain holders of our 6% Senior Notes due 2024 and 5 ½% Senior Notes due 2021 to exchange a total of 1.3 million shares of our common stock for notesevery ten shares then outstanding. Share and per share amounts included in the aggregate principal amount of $23 million.

The following table sets forth the components of the net periodic benefit costs for our defined benefit pension and postretirement benefit plans:

Except when the context otherwise requires or where otherwise indicated, (1) all references to ‘‘CRC,’’ the ‘‘Company,company,’’ ‘‘we,’’ ‘‘us’’ and ‘‘our’’ refer to California Resources Corporation and its subsidiaries or the California business, (2) all references to the ‘‘California business’’ refer to Occidental’s California oil and gas exploration and production operations and related assets, liabilities and obligations, which we have assumed in connection with the Spin-off discussed below, and (3) all references to ‘‘Occidental’’ refer to Occidental Petroleum Corporation, our former parent, and its subsidiaries.

We are an independent oil and natural gas exploration and production company operating properties exclusively within the State of California. We were incorporated in Delaware as a wholly owned subsidiary of Occidental Petroleum Corporation (Occidental) on April 23, 2014, and remained a wholly owned subsidiary of Occidental until November 30, 2014. Prior to November 30, 2014, all material existing assets, operations and liabilities of Occidental's California business were consolidated under CRC. On November 30, 2014, Occidental distributed shares of our common stock on a pro ratapro-rata basis to Occidental stockholders and we became an independent, publicly traded company (the Spin-off). Occidental initially retained approximately 18.5% of our outstanding shares of common stock, which it distributed to Occidental stockholders on March 24, 2016.

On May 31, 2016, we completed a reverse stock split using a ratio of one share of common stock for every ten shares then outstanding.

Our operating results and those of the oil and gas industry as a whole are heavily influenced by commodity prices. Oil and gas prices and differentials may fluctuate significantly, generally as a result of changes in supply and demand and other market-related uncertainties.variables. These and other factors make it impossible to predict realized prices reliably.

Much of the global exploration and production industry ishas been challenged at currentprevailing price levels in recent years, putting pressure on the industry's ability to generate positive cash flow and access capital. AverageGlobal oil prices continued the decline that beganimproved beginning in the last halfsecond quarter of 2014 into2016 through the first quarter of 2016. While global oil prices improved modestly through the third quarter of 20162017 and startedbegan to trade in a narrower range, they were still lower in the three and nine months ended September 30, 2016 compared to the same periods in 2015.

The following table presents the average daily Brent, WTI and NYMEX prices for the three and nine months ended September 30, 2016March 31, 2017 and 2015:2016:

Prices and differentials for NGLs are related to the supply and demand for the products making up these liquids. Some of them more typically correlate to the price of oil while others are affected by natural gas prices as well as the demand for certain chemical products for which they are used as feedstock. In addition, infrastructure constraints magnify pricing volatility.

Natural gas prices and differentials are strongly affected by local market fundamentals, as well as availability of transportation capacity from producing areas. Capacity influences prices because California imports about 90% of its natural gas from other parts of the U.S. As a result, we typically enjoy favorable pricing against the NYMEX index since we can deliver our gas for much lower transportation costs. Due to much lower levels of natural gas production compared to our oil production, the changes in natural gas prices have a lowersmaller impact on our operating results.

Higher natural gas prices have a net positive effect on our operating results. In addition to selling natural gas, we also use gas for our steamfloods and power generation. As a result, anythe positive impact of higher prices is partially offset by higher operating costs. Higher natural gas prices have a net positive effect on our operating results. Conversely, lower natural gas prices generally have a net negative effect on our operations, but lower the cost of our steamflood projects and power generation.

Our earnings are also affected by the performance of our processing and power generation assets. We process our wet gas to extract NGLs and other natural gas byproducts. We then deliver dry gas to pipelines and separately sell the NGLs. The efficiency with which we extract liquids from the wet gas stream affects our operating results. Additionally, we provideuse part of the electricity output from our Elk Hills power plant to reduce operating costs to Elk Hills and nearby fields and increase reliability. The remaining electricity is sold to the grid and a utility under a power purchase and sales agreement that includes a capacity payment. The price we obtain for our excess power impacts our earnings but generally by an insignificant amount.

We opportunistically seek strategic hedging transactions to protect our cash flows, margins and capital investment programs from the cyclical nature of commodity prices and to improve our ability to comply with the covenants under our credit facility covenants.facilities. We can give no assurances that our hedges will be adequate to accomplish our objectives. Unless otherwise indicated, we use the term "hedge" to describe derivative instruments that are designed to achieve our hedging program goals, even though they are not necessarily accounted for as cash-flow or fair-value hedges.

We respond to economic conditions by adjusting the size and allocation of our capital program, aligning the size of our workforce with theour level of activity, continuing to improve efficiencies and finding cost savings and working with our suppliers and service providers to adjust the cost of goods and services to reflect current market pricing.savings. The reductions in our capital program willin 2015 and 2016 negatively impactimpacted our production levels in the near term and sustained low-price periodslevels. Sustained low prices may materially affect the quantities of oil and gas reserves we can economically produce over the longer term.

Our total production costs consist of variable costs that tend to vary depending on production levels, and fixed costs that typically do not vary with changes in production levels or well counts, especially in the short term. The substantial majority of our near-term fixed costs become variable over the longer term because we manage them based on the field’s stage of life and operating characteristics. For example, portions of labor and material costs, energy, workovers and maintenance expenditures correlate to well count, production and activity levels. Portions of these same costs can be relatively fixed over the near term; however, they are managed down as fields mature in a manner that correlates to production and commodity price levels. While a certain amount of costs for facilities, surface support, surveillance and related maintenance can be regarded as fixed in the early phases of a program, as the production from a certain area matures, well count increases and daily per well production drops, such support costs can be reduced and consolidated over a larger number of wells, reducing costs per operating well. Further, many of our other costs, such as property taxes and oilfield services, are variable and will respond to activity levels and tend to correlate with commodity prices. Overall, we believe less thanapproximately one-third of our operating costs are fixed over the life cycle of our fields. We actively manage our fields to optimize production and costs. When we see growth in a field we increase capacities, and similarly when a field nears the end of its economic life we manage the costs while it remains economically viable to produce.

The changes in our balance sheet from December 31, 20152016 to September 30, 2016March 31, 2017 are discussed below:

Cash and cash equivalents at March 31, 2017 included $47 million of cash designated to be used for capital investments related to our joint venture with BSP. See "Liquidity and Capital Resources" for furtheradditional discussion of changes in our cash and cash equivalents and long-term debt, net.equivalents.

The decrease in trade receivables was largely the result of lower net sales in March 2017 compared to December 2016. The decrease in other current assets, net was mainly due to the sale of a non-core asset, a reduction in the amounts due from joint interest partners and a decrease in the net value of our derivative assets. The decrease in property, plant and equipment reflected depreciation, depletion and amortization (DD&A) for the period, partially offset by capital investments. The decrease in other assets was mainlyprimarily due to increased valuation allowances on deferred taxa reduction in the fair value of our long-term derivative assets.

The decrease in current maturities of long-term debt was due to the prepayments on our existing term loan during 2016. The decreaseincrease in accounts payable reflected lowerhigher capital investments and productionoperating costs in the quarter ended March 31, 2017 compared to December 31, 2016. The increasedecrease in accrued liabilities was primarily due to the deferral of gains related to sales of greenhouse gas allowances, the changereduction in fair value of derivative liabilitiesoutstanding derivatives and accrued interest on our debt,the effect of employee bonus payments in the first quarter of 2017, partially offset by increased interest accruals due to the effecttiming of severance and employee bonus payments during the first nine months of 2016. Current income taxes and otherpayments. Other long-term liabilities as of December 31, 2015 included $336 million in taxreflected lower derivative liabilities, that have subsequently been reclassified to deferred taxes. The other long-term liabilities also reflect higher derivative liabilitiesprimarily due to mark-to-market effects. The decrease in long-term debt reflected the retirementa reduction in amounts outstanding under our revolving credit facility, repurchases of a portion of our senior unsecured notes and the partial pay down ofpayments on our bank credit facilities, partially offset by the incurrence of newfirst-lien, first-out term loans.loan. The decrease in deferred gain and issuance costs, net, reflected the amortization of deferred gains, and new deferred debt issuance costs, partially offset by the amortization and write-off of existing deferred issuance costs. The increase in equity attributable to common stock primarily reflected the net income for the nine-month period in 2016.period. Equity attributable to noncontrolling interest reflected contributions from BSP and its share of the net loss for the quarter ended March 31, 2017.