RESTRUCTURING CHARGES

6 Months Ended

Jun. 30, 2020

Restructuring and Related Activities [Abstract]

On February 4, 2020, the Company notified employees of a workforce reduction plan as a result of a strategic realignment of the Company’s organizational structure. This reduction was substantially complete by the end of the first quarter of 2020. Affected employees were offered a severance package, which included a one-time payment depending on length of service and, if applicable, the current value of unvested long-term incentive awards that were forfeited. These costs were recognized as restructuring charges for the three and six months ended June 30, 2020, and a liability of approximately $1 million has been accrued as of June 30, 2020 related to future payments associated with the February 2020 restructuring.

In December 2018, the Company closed 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 (the “Fayetteville Shale sale”). As part of the transaction, most employees associated with those assets became employees of the buyer although the employment of some was terminated. Due to the scale of the assets that were sold, the temporary employment of certain employees was extended through a transition period into 2019. 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 equity awards that were forfeited. The Company also incurred charges related to office consolidation. A portion of these costs along with the aforementioned severance costs were recognized as restructuring charges in the first quarter of 2019.

The following table presents a summary of the restructuring charges included in Operating Income (Loss) for the three and six months ended June 30, 2020 and 2019:


	For the three months ended June 30,						For the six months ended June 30,
(in millions)	2020		2019		2020		2019
Severance (including payroll taxes)	$	2	$	1	$	12	$	3
Office consolidation	—		1		—		2

Total restructuring charges⁽¹⁾	$	2	$	2	$	12	$	5

(1)Total restructuring charges were $2 million and $12 million for the Company’s E&P segment for the three and six months ended June 30, 2020, respectively, and $2 million and $5 million for the three and six months ended June 30, 2019, respectively.

The following table presents a reconciliation of the liability associated with the Company’s restructuring activities at June 30, 2020, which is reflected in accounts payable on the consolidated balance sheet:


(in millions)
Liability at December 31, 2019	$	2
Additions	12
Distributions	(13)
Liability at June 30, 2020	$	1