Restructuring and Transaction Costs

12 Months Ended

Dec. 31, 2020

Restructuring And Related Activities [Abstract]

Restructuring and Transaction Costs

6. Restructuring and Transaction Costs

The following table summarizes Devon’s restructuring and transaction costs.

	Year Ended December 31,
	2020		2019		2018
Restructuring	$	41	$	84	$	97
Transaction costs		8		—		—
Total	$	49	$	84	$	97

Restructuring

2020 Workforce Reductions

In the third quarter of 2020, Devon announced a cost reduction plan designed to deliver sustainable cost savings by year-end 2020. As a result, Devon recognized $41 million of restructuring expenses during 2020. Of these expenses, $11 million and $9 million resulted from accelerated vesting of share-based grants and settlements and curtailments of defined retirement benefits, respectively, which are both noncash charges.

Prior Years’ Restructurings

During 2019 and 2018, Devon recognized restructuring expenses of $84 million and $97 million, respectively. Of these expenses recognized in 2019, $31 million and $7 million resulted from accelerated vesting of share-based grants and settlements of defined retirement benefits, respectively. Of these expenses recognized in 2018, $31 million and $14 million resulted from accelerated vesting of share-based grants and settlements of defined retirement benefits, respectively.

The following table summarizes Devon’s restructuring liabilities presented in the accompanying consolidated balance sheets.

	Other			Other
	Current			Long-term
	Liabilities			Liabilities			Total
Balance as of December 31, 2018	$	39		$	3		$	42
Changes due to 2019 workforce reductions		18			—			18
Changes related to prior years' restructurings		(37	)		(2	)		(39	)
Balance as of December 31, 2019	$	20		$	1		$	21
Changes related to 2020 workforce reductions		3			—			3
Changes related to prior years' restructurings		(18	)		—			(18	)
Changes related to retained liabilities previously classified as discontinued operations		30			136			166
Balance as of December 31, 2020	$	35		$	137		$	172

As of December 31, 2020, approximately $30 million and $136 million of liabilities were reclassified from liabilities associated with discontinued operations to other current and long-term liabilities, respectively, on the consolidated balance sheets.

Transaction Costs

On September 26, 2020, Devon and WPX entered into the Merger Agreement, providing for an all-stock merger of equals which was completed on January 7, 2021. Devon incurred approximately $8 million in bank, legal

and accounting fees in the fourth quarter of 2020 related to the Merger. Devon expects to incur additional transaction costs in connection with the Merger closing in 2021.