Restructuring And Transaction Costs

3 Months Ended

Mar. 31, 2016

Restructuring And Transaction Costs [Abstract]

Restructuring And Transaction Costs

6.     Restructuring and Transaction Costs

Reduction in Workforce

In the first quarter of 2016, Devon recognized $234 million of employee-related costs associated with a reduction in workforce that was made in response to the depressed commodity price environment. Of these employee-related costs, approximately $67 million resulted from accelerated vesting of share-based grants, which are noncash charges. Additionally, approximately $30 million resulted from estimated defined benefit settlements. These cash and noncash charges included estimates for employees released from service in the first quarter of 2016, as well as amounts based on the number of employees expected to be impacted by our non-core asset divestitures.  Devon expects to complete these divestitures in 2016.

Transaction Costs

In the first quarter of 2016, Devon and EnLink recognized $13 million of transaction costs primarily associated with the closing of the acquisitions discussed in Note 2.

Financial Statement Presentation

The following table summarizes Devon’s restructuring liabilities.

	Other		Other
	Current		Long-term
	Liabilities		Liabilities		Total
	(Millions)
Balance as of December 31, 2015	$	13	$	63	$	76
Changes due to 2016 workforce reductions		149		-		149
Changes related to prior years’ restructurings		2		(2)		-
Balance as of March 31, 2016	$	164	$	61	$	225
Balance as of December 31, 2014	$	13	$	7	$	20
Changes related to prior years’ restructurings		(1)		(1)		(2)
Balance as of March 31, 2015	$	12	$	6	$	18