Exit and Disposal Costs

9 Months Ended

Sep. 30, 2014

Restructuring And Related Activities [Abstract]

Exit and Disposal Costs

3. Exit and Disposal Costs

The following table provides the components of and changes in the Corporation’s restructuring accruals:

	Exploration
	and			Corporate			Discontinued
	Production			and Other			Operations			Total
	(In millions)
Employee Severance
Balance at January 1, 2014	$	32		$	32		$	107		$	171
Provision		19			17			41			77
Payments		(32	)		(20	)		(60	)		(112	)
Balance at September 30, 2014		19			29			88			136
Facility and Other Exit Costs
Balance at January 1, 2014		53			17			48			118
Provision		(16	)*		13			47			44
Payments, settlements and other		(36	)		(12	)		(86	)		(134	)
Balance at September 30, 2014		1			18			9			28
Total accruals at September 30, 2014	$	20		$	47		$	97		$	164

* Represents the release from certain leased office space obligations.

The following table provides the classification of costs and expense reversals associated with the Corporation’s restructuring program:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014			2013
	(In millions)
Employee Severance
Operating costs and expenses	$	1	$	1	$	3		$	45
Marketing expenses		1		—		2			5
Exploration expenses, including dry holes and lease impairment		1		1		5			16
General and administrative expenses		2		9		26			52
Income from discontinued operations		11		33		41			117
Total employee severance	$	16	$	44	$	77		$	235
Facility and Other Exit Costs
Marketing expenses	$	3	$	—	$	3		$	—
General and administrative expenses		2		—		(3	)		9
Depreciation, depletion and amortization		—		—		(3	)		—
Income from discontinued operations		15		13		47			48
Total facility and other exit costs	$	20	$	13	$	44		$	57

The employee severance charges primarily resulted from the Corporation’s divestiture program announced in March 2013. The severance charges were based on probable amounts incurred under ongoing severance arrangements or other statutory requirements, plus amounts earned through September 30, 2014 under enhanced benefit arrangements. The expense associated with the enhanced benefits is recognized ratably over the estimated service period required for the employee to earn the benefit upon termination.

The Corporation expects to incur additional enhanced severance benefit charges of approximately $1 million beyond the amounts accrued at September 30, 2014. The Corporation’s estimate of employee severance costs could change due to a number of factors, including the number of employees that work through the requisite service date and the timing of when each remaining divestiture occurs.

For the accrued employee severance at September 30, 2014 totaling $136 million, the Corporation expects to pay approximately 60% in 2014, 35% in 2015 and the remainder in 2016. For the accrued facility and other exit costs totaling $28 million, the Corporation expects to pay approximately 30% in 2014 and the remainder in 2015 and beyond.