On September 9, 2013, we committed to a workforce reduction plan as part of a company-wide reorganization effort intended to reduce costs. The reduction was communicated to affected employees on various dates within the months of September and October, and all such notifications were completed by October 11, 2013. The plan resulted in a reduction of approximately 900 employees. In connection with the reduction, we expect to incur a total cost of $70 million, of which approximately $31 million was recorded in the Current Quarter for employees terminated in September, and we expect to recognize the remaining $39 million in the 2013 fourth quarter for employees terminated in October. Of the $31 million in charges incurred in the Current Quarter, approximately $1 million was paid in the Current Quarter.

During the Current Quarter and the Current Period, we also incurred charges of approximately $28 million and $42 million, respectively, related to other workforce reductions, including executive officer separations.

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 Quarter and Current Period, we incurred charges of approximately $3 million and $67 million, respectively, related to Mr. McClendon’s departure.

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 fourth quarter. We are recognizing the expense related to their termination benefits over their remaining service period, including $1 million recognized in the Current Quarter.

Substantially all of the restructuring and other termination benefits in the Current Period are in the exploration and production operating segment. A summary of our restructuring and other termination benefits for the Current Quarter, the Prior Quarter, the Current Period and the Prior Period is as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
	($ in millions)
Restructuring charges under workforce reduction plan:
Salary expense	$	5	$	—	$	5	$	—
Acceleration of stock-based compensation	25		—		25		—
Other termination benefits	1		—		1		—
Total restructuring charges under workforce reduction plan	31		—		31		—

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	—		—		22		—
Acceleration of performance share unit awards	3		—		16		—
Estimated aircraft usage benefits	—		—		7		—
Total termination benefits provided to Mr. McClendon	3		—		67		—

Termination benefits provided to VSP participants:
Salary and bonus expense	—		—		33		—
Acceleration of stock-based compensation	1		—		28		—
Other termination benefits	—		—		2		—
Total termination benefits provided to VSP participants	1		—		63		—

Other termination benefits	28		3		42		4

Total restructuring and other termination benefits	$	63	$	3	$	203	$	4