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Employee Retirement and Other Termination Benefits (Notes)
6 Months Ended
Jun. 30, 2013
Compensation and Retirement Disclosure [Abstract]  
Pension and Other Postretirement Benefits Disclosure [Text Block]
Employee Retirement and Other Termination Benefits
On April 1, 2013, Aubrey K. McClendon, the co-founder of the Company, ceased serving as President and Chief Executive Officer (CEO) and as a director of the Company pursuant to his agreement with the Board of Directors announced on January 29, 2013. Mr. McClendon’s departure from the Company was treated as a termination without cause under his employment agreement. On April 18, 2013, the Company and Mr. McClendon entered into a Founder Separation and Services Agreement, effective January 29, 2013, regarding his separation from employment and to facilitate the relationship between the Company and Mr. McClendon as joint working interest owners of oil and gas wells, leases and acreage. In the Current Period, we accrued for the termination benefits that will be afforded Mr. McClendon under the terms of his separation and services agreement.
In December 2012, Chesapeake announced that it had offered a voluntary separation program (VSP) to certain employees as part of the Company's ongoing efforts to improve efficiencies and reduce costs. The VSP was offered to approximately 275 employees who met criteria based upon a combination of age and years of Chesapeake service. Employees had until February 7, 2013 to respond, and 211 employees accepted the offer. Certain employees have a separation date in the 2013 second half. We are recognizing the expense related to their termination benefits over their remaining service period, including $6 million recognized in the Current Quarter.
In addition, we provide benefits under certain circumstances to other employees that retire from or are terminated by Chesapeake. We recorded the following expenses related to the termination benefits provided to Mr. McClendon, the VSP participants and others. A summary of our employee retirement and other termination benefits for the Current Quarter, the Prior Quarter, the Current Period and the Prior Period is as follows:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
 
2013
 
2012
 
2013
 
2012
 
 
($ in millions)
Termination benefits provided to Mr. McClendon:
 
 
 
 
 
 
 
 
Salary and bonus expense
 
$

 
$

 
$
11

 
$

Acceleration of 2008 performance bonus
“claw-back” feature
 

 

 
11

 

Acceleration of stock-based compensation awards
 

 

 
22

 

Acceleration of performance share unit awards
 

 

 
13

 

Estimated aircraft usage benefits
 

 

 
7

 

Total termination benefits provided to
Mr. McClendon
 

 

 
64

 

 
 
 
 
 
 
 
 
 
Termination benefits provided to VSP participants:
 
 
 
 
 
 
 
 
Salary and bonus expense
 
3

 

 
32

 

Acceleration of restricted stock awards
 
3

 

 
27

 

Other associated costs
 

 

 
3

 

Total termination benefits provided to
VSP participants
 
6

 

 
62

 

 
 
 
 
 
 
 
 
 
Other termination benefits
 
1

 
1

 
14

 
1

 
 
 
 
 
 
 
 
 
Total employee retirement and other
termination benefits
 
$
7

 
$
1

 
$
140

 
$
1