Restructuring Charges

3 Months Ended

Mar. 31, 2016

Restructuring and Related Activities [Abstract]

Restructuring Charges

Restructuring Charges

In response to further decline in crude oil prices and our anticipation of a lower level of exploration and production spending in 2016, we initiated an additional plan to reduce our overall costs and workforce to better align with anticipated activity levels. This cost reduction plan (the “2016 Plan”) included a workforce reduction and other cost reduction measures initiated across our geographic regions.

In connection with the 2016 Plan, we recognized restructuring charges of $77 million in the first quarter of 2016, which include termination (severance) benefits of $72 million and other restructuring charges of $5 million. Other restructuring charges include contract termination costs, relocation and other associated costs.

In the fourth quarter of 2014, we announced a cost reduction plan (the “2015 Plan”), which included a worldwide workforce reduction and other cost reduction measures. In the first quarter of 2015, we recognized restructuring charges of $41 million for the 2015 Plan, which include termination (severance) benefits of $40 million and other restructuring charges of $1 million.

The following tables present the components of the 2016 Plan and the 2015 Plan restructuring charges by segment for the first quarter of 2016 and 2015.

	Three Months Ended March 31, 2016
					Total
(Dollars in millions)	Severance		Other		Severance and
2016 Plan	Charges		Charges		Other Charges
North America	$	19	$	5	$	24
MENA/Asia Pacific	9		—		9
Europe/SSA/Russia	15		—		15
Latin America	15		—		15
Subtotal	58		5		63
Land Drilling Rigs	4		—		4
Corporate and Research and Development	10		—		10
Total	$	72	$	5	$	77

	Three Months Ended March 31, 2015
					Total
(Dollars in millions)	Severance		Other		Severance and
2015 Plan	Charges		Charges		Other Charges
North America	$	8	$	—	$	8
MENA/Asia Pacific	5		1		6
Europe/SSA/Russia	7		—		7
Latin America	12		—		12
Subtotal	32		1		33
Land Drilling Rigs	5		—		5
Corporate and Research and Development	3		—		3
Total	$	40	$	1	$	41

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 plans mentioned previously as well as our 2014 cost reduction plan (the “2014 Plan”) that will be paid pursuant to the respective arrangements and statutory requirements.

	At March 31, 2016
	2016 Plan				2015 and 2014 Plans				Total
									Severance
	Severance		Other		Severance		Other		and Other
(Dollars in millions)	Liability		Liability		Liability		Liability		Liability
North America	$	6	$	5	$	5	$	1	$	17
MENA/Asia Pacific	2		—		3		4		9
Europe/SSA/Russia	9		—		5		8		22
Latin America	—		—		—		—		—
Subtotal	17		5		13		13		48
Land Drilling Rigs	1		—		—		—		1
Corporate and Research and Development	4		—		1		—		5
Total	$	22	$	5	$	14	$	13	$	54

The following table presents the restructuring liability activity for the first quarter of 2016.

			Three Months Ended March 31, 2016
(Dollars in millions)	Accrued Balance at December 31, 2015		Charges		Cash Payments			Other			Accrued Balance at March 31, 2016
2016 Plan:
Severance liability	$	—	$	72	$	(50	)	$	—		$	22
Other restructuring liability	—		5		—			—			5
2015 and 2014 Plan:
Severance liability	37		—		(20		)	(3		)	14
Other restructuring liability	14		—		(1		)	—			13
Total severance and other restructuring liability	$	51	$	77	$	(71	)	$	(3	)	$	54