In the fourth quarter of 2009, Devon announced plans to divest its offshore assets. As of December 31, 2011, Devon had divested all of its U.S. Offshore assets and substantially all of its International assets. Through the end of 2011, Devon had incurred $202 million of restructuring costs associated with these divestitures.

Employee Severance

This amount was originally based on estimates of the number of employees that would ultimately be impacted by the offshore divestitures and included amounts related to cash severance costs and accelerated vesting of share-based grants. As the divestiture program progressed, Devon decreased its overall estimate of employee severance costs. More offshore employees than previously estimated received comparable positions with either the purchaser of the properties or in Devon's U.S. Onshore operations.

Lease Obligations

As a result of the divestitures, Devon ceased using certain office space that was subject to non-cancellable operating lease arrangements. Consequently, in 2010 Devon recognized $70 million of restructuring costs that represented the present value of its future obligations under the leases, net of anticipated sublease income. Devon's estimate of lease obligations was based upon certain key estimates that could change over the term of the leases. These estimates include the estimated sublease income that Devon may receive over the term of the leases, as well as the amount of variable operating costs that Devon will be required to pay under the leases. In addition, Devon recognized $11 million of asset impairment charges for leasehold improvements and furniture associated with the office space that it ceased using.

Financial Statement Presentation

The schedule below summarizes restructuring costs presented in the accompanying comprehensive statements of earnings. Restructuring costs relating to Devon's discontinued operations totaled $(2) million, $(4) million, and $48 million in 2011, 2010, and 2009, respectively. These costs primarily relate to cash severance and share-based awards and are not included in the schedule below.


	Year Ended December 31,
	2011	2010	2009
	(In millions)
Cash severance	$ 9	$ (17)	$ 66
Share-based awards	(1)	(10)	39
Lease obligations	(13)	70	—
Asset impairments	2	11	—
Other	1	3	—
Total	$ (2)	$ 57	$ 105

The schedule below summarizes activity and balances associated with Devon's restructuring liabilities. Devon's restructuring liabilities related to its discontinued operations totaled $16 million and $23 million at December 31, 2010, and 2009, respectively. There was no liability at the end of 2011. These liabilities primarily relate to cash severance and are not included in the schedule below.

	Other Current Liabilities	Other Long-Term Liabilities	Total
	(In millions)
Balance as of December 31, 2009	$ 61	$ —	$ 61
Lease obligations incurred	17	51	68
Cash severance settled	(30)	—	(30)
Cash severance revision	(17)	—	(17)
Balance as of December 31, 2010	31	51	82
Lease obligations settled	(8)	(12)	(20)
Cash severance settled	(13)	—	(13)
Lease obligations revision	10	(23)	(13)
Cash severance revision	9	—	9
Balance as of December 31, 2011	$ 29	$ 16	$ 45