Reduction In Workforce

12 Months Ended

Dec. 31, 2016

(2) REDUCTION IN WORKFORCE

In January 2016, the Company announced a 40% workforce reduction as a result of lower anticipated drilling activity. This reduction was substantially completed in the first quarter of 2016. In April 2016, the Company also partially restructured executive management, which was substantially completed in the second quarter of 2016.

The following table presents a summary of the restructuring charges for the year ended December 31, 2016:


	(in millions)
Severance (including payroll taxes)	$	44
Stock-based compensation		24
Pension and other post retirement benefits(1)		5
Other benefits		3
Outplacement services, other		2
Total restructuring charges (2)	$	78

(1)

Includes non-cash charges related to the curtailment and settlement of the pension and other postretirement benefit plans. See Note 12 for additional details regarding the Company’s retirement and employee benefit plans.

(2)

Total restructuring charges were $75 million and $3 million for the Company’s E&P and Midstream Services segments, respectively.

The following table presents a summary of liabilities associated with the Company’s restructuring activities for the year ended December 31, 2016, which are reflected in accounts payable on the unaudited condensed consolidated balance sheet:


	(in millions)
Liability at December 31, 2015	$	–
Additions		49
Distributions		(48)
Liability at December 31, 2016	$	1

Severance payments and other separation costs related to restructuring were substantially completed by the end of 2016.