Exit and Disposal Costs

12 Months Ended

Dec. 31, 2016

Restructuring And Related Activities [Abstract]

Exit and Disposal Costs

15.  Exit and Disposal Costs

In 2016, we incurred severance expense of $55 million (2015: $13 million; 2014: $76 million) and paid accrued severance costs of $52 million (2015: $57 million; 2014: $170 million).  The severance charge in 2016 primarily resulted from a realignment of our organizational structure communicated in November 2016.  Severance charges in 2015 and 2014 resulted from a divestiture program announced in 2013.  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 other exit related costs of $15 million (2014: $65 million).  In 2016, we paid $2 million (2015: $21 million; 2014: $158 million) for accrued facility and other exit costs.  The facility and other exit costs related to charges associated with the cessation of use of certain leased office space, contract terminations, and costs associated with the shutdown of Port Reading refining operations.

At December 31, 2016, we had accrued liabilities for severance costs of $36 million (2015: $33 million) and accrued liabilities for exit costs of $17 million (2015: $19 million).  Of the accrued liabilities at December 31, 2016, all severance costs are expected to be paid in 2017 and the exit costs of $14 million will be paid over the next several years.