Restructuring Costs

12 Months Ended

Dec. 31, 2014

6. Restructuring Costs

Canadian Divestitures

During 2014, Devon recognized $46 million of employee related and other costs associated with its divestiture of certain Canadian assets. Approximately $15 million of the employee related costs resulted from accelerated vesting of share-based grants, which are noncash charges.

Office Consolidation

In October 2012, Devon announced plans to consolidate its U.S. personnel into a single operations group centrally located at the company’s corporate headquarters in Oklahoma City. As a result, Devon closed its office in Houston, transferred operational responsibilities for assets in south Texas, east Texas and Louisiana to Oklahoma City and incurred $134 million of restructuring costs associated with the consolidation. The employee severance and retention costs included amounts related to cash severance costs and accelerated vesting of share-based grants. The lease obligations and other costs related to certain office space that is subject to non-cancellable operating lease agreements and that Devon ceased using as part of the office consolidation.

Divestiture of Offshore Assets

In the fourth quarter of 2009, Devon announced plans to divest its offshore assets. As of December 31, 2012, Devon had divested all of its U.S. Offshore and International assets and incurred $196 million of restructuring costs associated with the divestitures.

Financial Statement Presentation

The schedule below summarizes restructuring costs presented in the accompanying consolidated comprehensive statements of earnings.




	Year Ended December 31,
	2014		2013		2012

	(In millions)
Canada divestitures:
Employee severance and retention	$	42	$	-	$	-
Lease obligations and other		4		-		-
Office consolidation:
Employee severance and retention		-		13		77
Lease obligations and other		-		41		3
Offshore divestiture:
Employee severance and retention		-		-		(3)
Lease obligations and other		-		-		(3)
Restructuring costs	$	46	$	54	$	74

The schedule below summarizes Devon’s restructuring liabilities.



	Other		Other
	Current		Long-term
	Liabilities		Liabilities		Total

	(In millions)
Balance as of December 31, 2012	$	52	$	9	$	61
Changes due to office consolidation		(22)		11		(11)
Changes due to offshore divestiture		(3)		(2)		(5)
Balance as of December 31, 2013		27		18		45
Changes due to Canadian divestitures		4		-		4
Changes due to office consolidation		(15)		(10)		(25)
Changes due to offshore divestiture		(3)		(1)		(4)
Balance as of December 31, 2014	$	13	$	7	$	20

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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