Restructuring and Reorganization Costs

12 Months Ended

Dec. 31, 2015

Restructuring and Related Activities [Abstract]

Restructuring and Reorganization Costs

Restructuring and Reorganization Costs

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

A before-tax charge of $353 ($223 after-tax) was recorded in 2015, with $219 reported as “Operating Expenses” and $134 reported as "Selling, general and administrative expense" on the Consolidated Statement of Income. The accrued liability, covering severance benefits, is classified as current on the Consolidated Balance Sheet. Approximately $134 ($87 after-tax) is associated with employee reductions in All Other, $113 ($73 after-tax) in U.S. Upstream and $106 ($63 after-tax) in International Upstream.

During 2015, the company made payments of $60 million associated with these liabilities. The following table summarizes the accrued severance liability, which is classified as current on the Consolidated Balance Sheet:

	Amounts Before Tax
Balance at January 1, 2015	$	—
Accruals/Adjustments	353
Payments	(60		)
Balance at December 31, 2015	$	293