Other Expense

The following table provides the components of the Company's other expense for the three and nine months ended September 30, 2016 and 2015:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
	(in millions)
Transportation commitment charges (a)	$	27	$	11	$	77	$	38
Loss from vertical integration services (b)	17		20		46		16
Idle drilling and well service equipment charges (c)	10		22		42		73
Terminated drilling rig charges (d)	—		—		15		—
Impairment of inventory and other property and equipment (e)	1		13		6		21
Restructuring charges (f)	—		9		4		24
Other	14		4		33		14
Total other expense	$	69	$	79	$	223	$	186

____________________


(a)	Primarily represents firm transportation payments on excess pipeline capacity commitments.

(b)

Loss from vertical integration services primarily represents net margins (attributable to third party working interest owners) that result from Company-provided fracture stimulation and service operations, which are ancillary to and supportive of the Company's oil and gas joint operating activities, and do not represent intercompany transactions. For the three and nine months ended September 30, 2016, these vertical integration net margins included $19 million and $144 million, respectively, of revenues and $36 million and $190 million, respectively, of costs and expenses. For the same respective periods in 2015, these vertical integration net margins included $66 million and $264 million of revenues and $86 million and $280 million of costs and expenses.


(c)	Primarily represents expenses attributable to idle drilling rig fees that are not chargeable to joint operations.


(d)	Primarily represents charges to terminate rig contracts that were not required to meet planned drilling activities.


(e)	Primarily represents charges to reduce excess material and supplies inventories to their market values. See Note D for additional information on the fair value of materials and supplies inventory.


(f)	Represents costs associated with the Company's restructuring of its pressure pumping operations in South Texas in 2016 and its operations in Colorado in 2015. See Note B for additional information on the restructuring charges.