Restructuring and Other Termination Benefits (Note)

12 Months Ended

Dec. 31, 2013

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

Restructuring and Other Termination Costs

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 incurred a total cost of approximately $66 million.

On April 1, 2013, Aubrey K. McClendon, the co-founder of the Company, ceased serving as President and 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. See Note 7 regarding Mr. McClendon’s historical participation in our drilling activities. In 2013, we incurred charges of approximately $69 million 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, and 211 accepted prior to the expiration of the offer in February 2013. We recognized the expense related to their termination benefits over their remaining service period which resulted in $63 million of expense for 2013.

During 2013, we also incurred charges of approximately $50 million related to other workforce reductions, including separations of executive officers other than the CEO.

Substantially all of the restructuring and other termination costs in 2013 are in the exploration and production operating segment. Below is a summary of our restructuring and other termination costs for the years ended December 31, 2013, 2012 and 2011:

	Years Ended December 31,
	2013		2012		2011
	($ in millions)
Restructuring charges under workforce reduction plan:
Salary expense	$	20	$	—	$	—
Acceleration of stock-based compensation	45		—		—
Other termination benefits	1		—		—
Total restructuring charges under workforce reduction plan	66		—		—
Termination benefits provided to Mr. McClendon:
Salary and bonus expense	11		—		—
Acceleration of 2008 performance bonus clawback	11		—		—
Acceleration of stock-based compensation	22		—		—
Acceleration of performance share unit awards	18		—		—
Estimated aircraft usage benefits	7		—		—
Total termination benefits provided to Mr. McClendon	69		—		—
Termination benefits provided to VSP participants:
Salary and bonus expense	33		1		—
Acceleration of stock-based compensation	29		1		—
Other termination benefits	1		—		—
Total termination benefits provided to VSP participants	63		2		—
Other termination benefits	50		5		—
Total restructuring and other termination costs	$	248	$	7	$	—