Exit and Disposal Costs

12 Months Ended

Dec. 31, 2017

Restructuring And Related Activities [Abstract]

Exit and Disposal Costs

13.  Exit and Disposal Costs

In 2017, we incurred severance expense of $18 million (2016: $55 million; 2015: $13 million) and paid accrued severance costs of $48 million (2016: $52 million; 2015: $57 million).  The severance expenses in 2017 resulted from certain asset disposals, as detailed in Note 2, Dispositions.  In 2016 and 2015, severance charges related to a realignment of our organization structure communicated in November 2016 and a divestiture program announced in 2013, respectively.  Severance charges were based on amounts incurred under ongoing severance arrangements or other statutory requirements, plus amounts earned under enhanced benefit arrangements.  We recognized the expense associated with the enhanced benefits ratably over the estimated service period required for the employee to earn the benefit upon termination.  

In 2017, we incurred other facility and exit related costs of $14 million (2016: $-; 2015: $15 million) and settled $3 millions of these costs (2016: $2 million; 2015: $21 million).  The facility and other exit costs related to charges associated with the cessation of use of certain leased office space and contract terminations.

At December 31, 2017, we had accrued liabilities for severance costs of $6 million (2016: $36 million) and accrued liabilities for exit costs of $28 million (2016: $17 million).  Of the accrued liabilities at December 31, 2017, all severance costs are expected to be paid in 2018 and the exit costs will be paid over the next several years.