Reduction In Workforce

9 Months Ended

Sep. 30, 2017

(3) REDUCTION IN WORKFORCE

In January 2016, the Company announced a 40% workforce reduction as a result of lower anticipated drilling activity. This reduction was substantially completed in the first quarter of 2016. In April 2016, the Company also partially restructured executive management, which was substantially completed in the second quarter of 2016.

The following table presents a summary of the restructuring charges for the three and nine months ended September 30, 2016:


	For the three months ended		For the nine months ended
	September 30, 2016		September 30, 2016
	(in millions)
Severance (including payroll taxes) (1)	$	–	$	44
Stock-based compensation (2)		–		24
Pension and other postretirement benefits (3)		2		5
Other benefits		−		3
Outplacement services, other		−		1
Total restructuring charges (4)	$	2	$	77

(1)

Includes $1 million related to executive management restructuring for the nine months ended September 30, 2016.

(2)

Includes $3 million related to executive management restructuring for the nine months ended September 30, 2016.

(3)

Includes non-cash charges related to the curtailment and settlement of the pension and other postretirement benefit plans. See Note 11 for additional details regarding the Company’s pension and other postretirement benefit plans.

(4)

Total restructuring charges were $2 million for the Company’s E&P segment for the three months ended September 30, 2016. For the nine months ended September 30, 2016, restructuring charges were $74 million and $3 million for the Company’s E&P and Midstream Services segments, respectively.

Severance payments and other separation costs related to restructuring were substantially completed by the end of 2016.