XML 22 R11.htm IDEA: XBRL DOCUMENT v3.8.0.1
Restructuring and Transformation Charges
 3 Months Ended
Mar. 31, 2018
Restructuring and Related Activities [Abstract]  
Restructuring Charges
Restructuring and Transformation Charges

Due to the ongoing lower than anticipated levels of exploration and production spending, we continue to reduce our overall cost structure and workforce to better align with current activity levels. The ongoing cost reduction plans, which began in 2018 and are expected to continue through 2019 (the “Transformation Plan”), included a workforce reduction, organization restructure, facility consolidations and other cost reduction measures and efficiency initiatives across our geographic regions.

In connection with the Transformation Plan, we recognized restructuring and transformation charges of $25 million in the first quarter of 2018, which include termination (severance) charges of $11 million and other restructuring charges of $14 million. Other restructuring charges include contract termination costs, relocation and other associated costs.

In connection with the 2016-17 Plan, we recognized restructuring charges of $75 million in the first quarter of 2017, which include termination (severance) charges of $34 million, other restructuring charges of $29 million and restructuring related asset charges of $12 million. Other restructuring charges include contract termination costs, relocation and other associated costs.

The following tables present the components of restructuring charges by segment for the first quarter of 2018 and 2017.
 
Three Months Ended March 31, 2018
 
 
 
Total
(Dollars in millions)
Severance
Other
Severance and
Transformation Plan
Charges
Charges
Other Charges
Western Hemisphere
$
4

$
—

$
4

Eastern Hemisphere
4

5

9

Corporate
3

9

12

  Total
$
11

$
14

$
25


 
Three Months Ended March 31, 2017
 
 
 
Total
(Dollars in millions)
Severance
Other
Severance and
2016-17 Plan
Charges
Charges
Other Charges
Western Hemisphere
$
5

$
18

$
23

Eastern Hemisphere
7

19

26

Corporate
22

4

26

  Total
$
34

$
41

$
75



The severance and other restructuring charges gave rise to certain liabilities, the components of which are summarized below, and largely relate to liabilities accrued as part of the 2016-17 and Prior Plans that will be paid pursuant to the respective arrangements and statutory requirements.
 
At March 31, 2018
 
Transformation Plan
 
2016-17 and Prior Plans
Total
 
 
 
 
 
 
Severance
 
Severance
Other
 
Severance
Other
and Other
(Dollars in millions)
Liability
Liability
 
Liability
Liability
Liability
Western Hemisphere
$
—

$
—

 
$
2

$
14

$
16

Eastern Hemisphere
2

1

 
3

20

26

Corporate
2

6

 
10

—

18

  Total
$
4

$
7

 
$
15

$
34

$
60


The following table presents the restructuring liability activity for the first three months of 2018.
 
 
 
Three Months Ended March 31, 2018
 
 
(Dollars in millions)
Accrued Balance at December 31, 2017
 
Charges
 
Cash Payments
 
Other 
 
Accrued Balance at March 31, 2018
Transformation Plan
 
 
 
 
 
 
 
 
 
Severance liability
$
—

 
$
11

 
$
(8
)
 
$
1

 
$
4

Other restructuring liability
—

 
$
14

 
$
(6
)
 
$
(1
)
 
$
7

 
 
 
 
 
 
 
 
 
 
2016-17 and Prior Plans:
 
 
 
 
 
 
 
 
 
Severance liability
21

 
—

 
(7
)
 
1

 
15

Other restructuring liability
40

 
—

 
(5
)
 
(1
)
 
34

Total severance and other restructuring liability
$
61

 
$
25

 
$
(26
)
 
$
—

 
$
60