Restructuring Charges

9 Months Ended

Sep. 30, 2019

Restructuring and Related Activities [Abstract]

RESTRUCTURING CHARGES

In June 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 of 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, the current value of a portion of equity awards that were forfeited.

In December 2018, the Company closed on the sale of the equity in certain of its subsidiaries that owned and operated its Fayetteville Shale E&P and related midstream gathering assets in Arkansas. As part of the transaction, most employees associated with those assets became employees of the buyer although the employment of some was terminated. All affected employees were offered a severance package, which included a one-time cash payment depending on length of service and, if applicable, the current value of a portion of equity awards that were forfeited. As of September 30, 2019, the Company has substantially completed the Fayetteville Shale sale-related employment terminations.

In July 2019, the Company terminated its existing lease agreement on its headquarters office building and entered into a new 10-year lease agreement for a smaller portion of the building. Approximately $3 million of the fees associated with the Company’s office consolidation are reflected as restructuring charges for the three months ended September 30, 2019. The Company also recognized additional severance costs in the third quarter of 2019, related to continued organizational restructuring, for which a liability of $1 million has been accrued as of September 30, 2019.

The following table presents a summary of the restructuring charges included in Operating Income (Loss) for the three and nine months ended September 30, 2019 and 2018:


	For the three months ended September 30,						For the nine months ended September 30,
(in millions)	2019		2018		2019		2018
Severance (including payroll taxes)	$	1	$	1	$	4	$	18
Office consolidation	3		—		5		—
Professional fees	—		1		—		2
Total restructuring charges⁽¹⁾	$	4	$	2	$	9	$	20

(1)Total restructuring charges were $4 million and $9 million for the Company’s E&P segment for the three and nine months ended September 30, 2019, respectively. Total restructuring charges were $2 million for the Company’s E&P segment for the three months ended September 30, 2018, and $18 million and $2 million for the Company’s E&P and Midstream segments, respectively, for the nine months ended September 30, 2018.

The following table presents a reconciliation of the liability associated with the Company’s restructuring activities at September 30, 2019, which is reflected in accounts payable on the consolidated balance sheet:


(in millions)
Liability at December 31, 2018	$	5
Additions	9
Distributions	(13)
Liability at September 30, 2019	$	1