Exit and Disposal Costs

12 Months Ended

Dec. 31, 2015

Restructuring And Related Activities [Abstract]

Exit and Disposal Costs

13.  Exit and Disposal Costs

In 2015, we incurred severance expense of $13 million (2014: $76 million; 2013: $252 million) and paid accrued severance costs of $57 million (2014: $170 million; 2013: $81 million).  The employee severance charges primarily resulted from our divestiture program announced in 2013.  The severance charges were based on amounts incurred under ongoing severance arrangements or other statutory requirements, plus amounts earned under enhanced benefit arrangements.  The expense associated with the enhanced benefits was recognized ratably over the estimated service period required for the employee to earn the benefit upon termination.  

In 2015, we recorded exit related costs of $15 million (2014: $65 million; 2013: $220 million) and paid $21 million (2014: $158 million; 2013: $102 million) for accrued facility and other exit costs.  The facility and other exit costs relate to charges associated with the cessation of use of certain leased office space, contract terminations, professional fees, and costs associated with the shutdown of Port Reading refining operations.

At December 31, 2015, we have accrued liabilities of $33 million (2014: $77 million) for severance and $19 million (2014: $25 million) for exit related costs.  We expect to make all payments for severance in 2016, and to pay facility and exit cost through 2027.