Restructuring Charges

Due to the ongoing levels of exploration and production spending, we continue to reduce our overall cost structure and workforce to better align with current activity levels of exploration and production. The cost reduction plan which began in 2016 and continued throughout 2017 (the “2016-17 Plan”), included a workforce reduction and other cost reduction measures initiated across our geographic regions. Prior plans, including the 2016 cost reduction plan (the “2016 Plan”) and 2015 cost reduction plan (the “2015 Plan”) also included a workforce reduction and other cost reduction measures initiated across our geographic regions. Other restructuring charges in each plan include contract termination costs, relocation and other associated costs.

In connection with the 2016-17 Plan, we recognized restructuring charges of $183 million in 2017, which include severance benefits of $109 million, other restructuring charges of $62 million and restructuring related asset charges of $12 million.

In connection with the 2016 Plan, we recognized restructuring charges of $280 million in 2016, which include severance benefits of $196 million, other restructuring charges of $44 million and restructuring related asset charges of $40 million.

The 2015 Plan commenced in the fourth quarter of 2014 and included a worldwide workforce reduction and other cost reduction measures. In connection with the 2015 Plan, we recognized restructuring charges of $232 million in 2015, which include severance benefits of $149 million, other restructuring charges of $19 million and restructuring related asset charges of $64 million.

The following tables present the components of the restructuring charges by segment and plan for the years ended December 31, 2017, 2016 and 2015.



	Year Ended December 31, 2017
			Other		Total
(Dollars in millions)	Severance		Restructuring		Severance and
2016-17 Plan	Charges		Charges		Other Charges
Western Hemisphere	$	42	$	28	$	70
Eastern Hemisphere	35		42		77
Corporate	32		4		36
Total	$	109	$	74	$	183



	Year Ended December 31, 2016
			Other		Total
(Dollars in millions)	Severance		Restructuring		Severance and
2016 Plan	Charges		Charges		Other Charges
Western Hemisphere	$	82	$	71	$	153
Eastern Hemisphere	62		13		75
Corporate	52		—		52
Total	$	196	$	84	$	280



	Year Ended December 31, 2015
			Other		Total
(Dollars in millions)	Severance		Restructuring		Severance and
2015 Plan:	Charges		Charges		Other Charges
Western Hemisphere	$	68	$	26	$	94
Eastern Hemisphere	66		57		123
Corporate	15		—		15
Total	$	149	$	83	$	232

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 2016-17 Plan, the 2016 Plan and the 2015 Plan that will be paid pursuant to the respective arrangements and statutory requirements.



	At December 31, 2017
	2016-17 and 2016 Plans				2015 Plan				Total
									Severance
	Severance		Other		Severance		Other		and Other
(Dollars in millions)	Liability		Liability		Liability		Liability		Liability
Western Hemisphere	$	4	$	17	$	—	$	—	$	21
Eastern Hemisphere	7		18		—		5		30
Corporate	10		—		—		—		10
Total	$	21	$	35	$	—	$	5	$	61

The following table presents the restructuring accrual activity for the year ended December 31, 2017.



			Year Ended December 31, 2017
(Dollars in millions)	Accrued Balance at December 31, 2016		Charges		Cash Payments			Other			Accrued Balance at December 31, 2017
2016-17 and 2016 Plans:
Severance liability	$	52	$	109	$	(137	)	$	(3	)	$	21
Other restructuring liability	22		62		(26		)	(23		)	35
2015 Plan:
Severance liability	3		—		(3		)	—			—
Other restructuring liability	9		—		(1		)	(3		)	5
Total severance and other restructuring liability	$	86	$	171	$	(167	)	$	(29	)	$	61