Restructuring And Transaction Costs

9 Months Ended

Sep. 30, 2016

Restructuring And Related Activities [Abstract]

Restructuring And Transaction Costs

6. Restructuring and Transaction Costs

The following table summarizes restructuring and transaction costs presented in the accompanying consolidated comprehensive statement of earnings.

	September 30, 2016
	Three Months Ended			Nine Months Ended
	(Millions)
2016 reduction in workforce:
Employee related costs	$	(7	)	$	229
Lease obligations		—			17
Asset impairments		—			3
Transaction costs		2			17
Restructuring and transaction costs	$	(5	)	$	266

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		58			13			71
Changes related to prior years' restructurings		5			(8	)		(3	)
Balance as September 30, 2016	$	76		$	68		$	144
Balance as of December 31, 2014	$	13		$	7		$	20
Changes related to prior years' restructurings		(5	)		(2	)		(7	)
Balance as of September 30, 2015	$	8		$	5		$	13

Reduction in Workforce

In the first nine months of 2016, Devon recognized $229 million in 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 $60 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 during the first nine months of 2016, as well as amounts based on the number of employees expected to be impacted by certain of its non-core asset divestitures.

As a result of the reduction in workforce and asset divestitures, Devon ceased using certain office space that was subject to non-cancellable operating lease arrangements. Consequently, Devon recognized $17 million of restructuring costs that represent the present value of its future obligations under the leases. Additionally, Devon recognized $3 million of asset impairment charges for leasehold improvements and furniture associated with the office space it ceased using.

Transaction Costs

In the first nine months of 2016, Devon and EnLink recognized transaction costs primarily associated with the closing of the acquisitions discussed in Note 2.