Restructuring and Reorganization Costs

6 Months Ended

Jun. 30, 2015

Restructuring and Related Activities [Abstract]

In second quarter 2015, the company recorded charges for employee reduction programs related to the restructuring and reorganization of its corporate staffs and certain upstream operations. The terminations are expected to be substantially completed by the end of 2016.

A before-tax charge of $264 million ($160 million after-tax) was recorded in second quarter 2015, with $140 million reported as “Operating Expenses” and $124 million reported as “Selling, general and administrative expenses” on the Consolidated Statement of Income. The accrued liability, covering severance benefits, is classified as current on the Consolidated Balance Sheet. Approximately $25 million ($16 million after-tax) is associated with terminations in U.S. Upstream, $115 million ($64 million after-tax) in International Upstream, and $124 million ($80 million after-tax) in All Other.



	Amounts Before Tax
	(Millions of dollars)
Balance at January 1, 2015	$	—
Accruals/Adjustments	264
Payments	—
Balance at June 30, 2015	$	264