Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94 Page 95 Page 96 Page 97 Page 98 Page 99 Page 100 Page 101 Page 102 Page 103 Page 104 Page 105 Page 106 Page 107 Page 108 Page 109 Page 110 Page 111 Page 112 Page 113 Page 114 Page 115 Page 116 Page 117 Page 118 Page 119 Page 120 Page 121 Page 122 Page 123 Page 124 Page 125 Page 126 Page 127 Page 128 Page 129 Page 130 Page 131 Page 132 Page 133 Page 134 Page 135 Page 136 Page 137 Page 138 Page 139 Page 140 Page 141 Page 142 Page 143 Page 144 Page 145 Page 146 Page 147 Page 148 Page 149 Page 150 Page 151 Page 152 Page 153 Page 154 Page 155 Page 156 Page 157 Page 158 Page 159 Page 160 Page 161 Page 162 Page 163 Page 164 Page 165 Page 166 Page 167 Page 168 Page 169 Page 170 Page 171 Page 172 Page 173 Page 174 Page 175 Page 176 Page 177 Page 178 Page 179 Page 180 Page 181 Page 182KOSMOS ENERGY LTD. Notes to Consolidated Financial Statements (Continued) 2. Accounting Policies (Continued) Cash, Cash Equivalents and Restricted Cash December 31, 2016 2015 2014 (In thousands) Cash and cash equivalents . . . . . . . . . . . . . . . . . . . $194,057 $275,004 $554,831 Restricted cash—current . . . . . . . . . . . . . . . . . . . . 24,506 28,533 15,926 Restricted cash—long-term . . . . . . . . . . . . . . . . . . 54,632 7,325 16,125 Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $273,195 $310,862 $586,882 Cash and cash equivalents includes demand deposits and funds invested in highly liquid instruments with original maturities of three months or less at the date of purchase. In accordance with our commercial debt facility (the ‘‘Facility’’), we are required to maintain a restricted cash balance that is sufficient to meet the payment of interest and fees for the next six-month period on the 7.875% Senior Secured Notes due 2021 (‘‘Senior Notes’’) plus the Corporate Revolver or the Facility, whichever is greater. As of December 31, 2016 and 2015, we had $24.5 million and $24.4 million, respectively, in current restricted cash to meet this requirement. In addition, in accordance with certain of our petroleum contracts, we have posted letters of credit related to performance guarantees for our minimum work obligations. These letters of credit are cash collateralized in accounts held by us and as such are classified as restricted cash. Upon completion of the minimum work obligations and/or entering into the next phase of the petroleum contract, the requirement to post the existing letters of credit will be satisfied and the cash collateral will be released. However, additional letters of credit may be required should we choose to move into the next phase of certain of our petroleum contracts. As of December 31, 2016 and 2015, we had zero and $4.1 million, respectively, of short-term restricted cash and $54.6 million and $7.3 million, respectively, of long-term restricted cash used to cash collateralize performance guarantees related to our petroleum contracts. Receivables Our receivables consist of joint interest billings, oil sales and other receivables. For our oil sales receivable, we require a letter of credit to be posted to secure the outstanding receivable. Receivables from joint interest owners are stated at amounts due, net of any allowances for doubtful accounts. We determine our allowance by considering the length of time past due, future net revenues of the debtor’s ownership interest in oil and natural gas properties we operate, and the owner’s ability to pay its obligation, among other things. We had an allowance for doubtful accounts of $0.6 million and zero in current joint interest billings receivables as of December 31, 2016 and 2015, respectively. Inventories Inventories consisted of $68.1 million and $84.4 million of materials and supplies and $6.3 million and $0.8 million of hydrocarbons as of December 31, 2016 and 2015, respectively. The Company’s materials and supplies inventory primarily consists of casing and wellheads and is stated at the lower of 112