18.Restructuring Charges

In 2013 and 2015, Encana recognized employee and other related costs associated with workforce reductions as a result of organizational restructurings to support changes in the Company’s strategy. During 2015, transition and severance costs of $64 million, before tax, were incurred, of which $2 million related to the 2013 restructuring plan. As at December 31, 2015, $13 million remained accrued.

In February 2016, Encana announced workforce reductions to better align staffing levels and the organizational structure with the Company’s reduced capital spending program as a result of the low commodity price environment. During 2016, the Company incurred total restructuring charges of $34 million, before tax, primarily related to severance costs, of which $7 million remained accrued as at December 31, 2016. As at December 31, 2017, all restructuring costs have been paid.

Restructuring charges are included in administrative expense presented in the Corporate & Other segment in the Consolidated Statement of Earnings.



For the years ended December 31		2017		2016		2015

Employee Severance and Benefits	$	-	$	33	$	58
Consultants and Building Sublease Brokerage Fees		-		-		4
Outplacement, Moving and Other Expenses		-		1		2
	$	-	$	34	$	64



For the years ended December 31		2017		2016		2015

Outstanding Restructuring Accrual, Beginning of Year	$	7	$	13	$	4
Current Year Restructuring Expenses Incurred		-		34		62
Charges Related to Prior Years' Restructuring		-		-		2
Restructuring Costs Paid		(7)		(40)		(55)
Outstanding Restructuring Accrual, End of Year (1)	$	-	$	7	$	13

(1)

Included in accounts payable and accrued liabilities in the Consolidated Balance Sheet.