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Restructuring Charges
 12 Months Ended
Dec. 31, 2014
Restructuring and Related Activities [Abstract]  
Restructuring Charges
Restructuring Charges

In the fourth quarter of 2014, in response to the significant decline in the price of crude oil and our anticipation of a lower level of exploration and production spending in 2015, we initiated a plan to reduce our overall costs and workforce to better align with anticipated activity levels. This cost reduction plan (“the 2015 Plan”) includes a workforce reduction and other cost reduction measures initiated across our geographic regions.

In the first quarter of 2014, we announced a cost reduction plan (“the 2014 Plan”), which included a worldwide workforce reduction and other cost reduction measures. In connection with the 2014 Plan, we recognized restructuring charges of $273 million in 2014. Our restructuring charges during 2014 in connection with the 2014 Plan include restructuring related asset charges of $135 million, termination (severance) benefits of $114 million, and other restructuring charges of $24 million, for a total of $273 million. Other restructuring charges include contract termination costs, relocation and other associated costs.
 
The impairments recognized in connection with the 2014 Plan primarily pertain to operations in our Middle East/North Africa (“MENA”) region, where geopolitical issues and recent disruptions in North Africa, primarily Libya, resulted in the decisions in the third quarter of 2014 to exit product lines in selected markets. The 2014 Plan activities resulted in $106 million of cash payments in 2014.

As of December 31, 2014, we completed our planned headcount reductions and closures of underperforming operating locations in connection with the 2014 Plan. The following tables present the components of the restructuring charges by segment.
 
Year Ended December 31, 2014

(Dollars in millions)
North America
 
MENA/Asia Pacific
 
Europe/SSA/Russia
 
Latin America
 
Corporate
and Research
and
Development
 
Total
2015 Plan:
 
 
 
 
 
 
 
 
 
 
 
Severance charges
$
32

 
$
8

 
$
5

 
$
12

 
$
1

 
$
58

2014 Plan:
 
 
 
 
 
 
 
 
 
 
 
Severance charges
15

 
23

 
18

 
30

 
28

 
114

Restructuring related asset charges
24

 
105

 
4

 
—

 
2

 
135

Other restructuring charges
3

 
5

 
9

 
7

 
—

 
24

 
$
74

 
$
141

 
$
36

 
$
49

 
$
31

 
$
331



The severance and other restructuring charges gave rise to certain liabilities, the components of which are summarized below, and largely relate to the severance accrued as part of the 2014 Plan and 2015 Plan that will be paid pursuant to the respective arrangements and statutory requirements.
 
At December 31, 2014
(Dollars in millions)
North America
 
MENA/Asia Pacific
 
Europe/SSA/Russia
 
Latin America
 
Corporate and Research and Development
 
Total
2015 Plan:
 
 
 
 
 
 
 
 
 
 
 
Severance liability
$
32

 
$
6

 
$
5

 
$
9

 
$
1

 
$
53

2014 Plan:
 
 
 
 
 
 
 
 
 
 
 
Severance and other restructuring liability
1

 
8

 
6

 
—

 
11

 
26

 
$
33

 
$
14

 
$
11

 
$
9

 
$
12

 
$
79



The following table presents the restructuring accrual activity for the year ended December 31, 2014.
 
 
 
Twelve Months Ended December 31, 2014
 
 
(Dollars in millions)
Accrued Balance at December 31, 2013
 
Charges (a)
 
Cash Payments
 
Other 
 
Accrued Balance at December 31, 2014
2015 Plan:
 
 
 
 
 
 
 
 
 
Severance liability
$
—

 
$
58

 
$
(5
)
 
$
—

 
$
53

2014 Plan:
 
 
 
 
 
 
 
 
 
Severance charges
—

 
114

 
(94
)
 
(6
)
 
14

Other restructuring charges
—

 
24

 
(12
)
 
—

 
12

Severance and other restructuring liability
—

 
138

 
(106
)
 
(6
)
 
26

 
$
—

 
$
196

 
$
(111
)
 
$
(6
)
 
$
79

(a)
Includes reversal of $5 million severance charges and $2 million facility related charges for the 2014 Plan.