Reduction in Workforce

6 Months Ended

Jun. 30, 2018

(3) REDUCTION IN WORKFORCE

On June 27, 2018, the Company notified affected employees of a workforce reduction plan, which resulted primarily from a previously announced study of structural, process and organizational changes to enhance shareholder value and continues with respect to other aspects the Company’s business activities. Affected employees were offered a severance package, which included a one-time cash payment depending on length of service and, if applicable, current value of a portion of equity awards that were forfeited. The plan has been substantially implemented. The following table presents a summary of the restructuring charges for the three and six months ended June 30, 2018:



	For the three and six months ended
(in millions)	June 30, 2018
Severance (including payroll taxes) (1)	$	17
Professional fees		1
Total restructuring charges (2)	$	18

(1)

Includes approximately $2 million in cash severance payments related to the approximate fair value of a portion of unvested stock-based awards that were subsequently cancelled and approximately $358,000 in non-cash stock-based compensation.

(2)

Total restructuring charges were $16 million and $2 million for the Company’s E&P and Midstream segments, respectively.

As of June 30, 2018, the Company recorded a liability of $18 million for severance payments (including payroll taxes) which is reflected in accounts payable on the unaudited condensed consolidated balance sheet. Most of this liability is being paid in the third quarter of 2018.