Page 114

CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 19. Restructuring and Other Termination Costs Workforce Reductions In 2018, we underwent a reduction in workforce impacting approximately 13% of employees across all functions, primarily on our Oklahoma City campus. In connection with the reduction, we incurred a total charge of approximately $38 million for one-time termination benefits. The following table summarizes our restructuring liabilities: Other Current Liabilities ($ in millions) $ — 38 (38) $ —

Balance as of December 31, 2017 Initial restructuring recognition on January 30, 2018 Termination benefits paid Balance as of December 31, 2018

In 2016, we recognized $6 million of charges related to a reduction in workforce in connection with the restructuring of our compressor manufacturing subsidiary and the reductions in workforce resulting from the conveyance of our interests in the Barnett Shale and Devonian Shale operating areas. 20. Fair Value Measurements Recurring Fair Value Measurements Other Current Assets. Assets related to our deferred compensation plan are included in other current assets. The fair value of these assets is determined using quoted market prices as they consist of exchange-traded securities. Other Current Liabilities. Liabilities related to our deferred compensation plan are included in other current liabilities. The fair values of these liabilities are determined using quoted market prices as the plan consists of exchangetraded mutual funds. Financial Assets (Liabilities). The following table provides fair value measurement information for the above-noted financial assets (liabilities) measured at fair value on a recurring basis as of December 31, 2018 and 2017: Quoted Prices in Active Markets (Level 1) As of December 31, 2018 Financial Assets (Liabilities): Other current assets Other current liabilities Total

$

As of December 31, 2017 Financial Assets (Liabilities): Other current assets Other current liabilities Total

$

$

$

Significant Other Significant Observable Unobservable Inputs Inputs (Level 2) (Level 3) ($ in millions)

50 $ (51) (1) $

— — —

$

57 $ (60) (3) $

— — —

$

$

$

Total Fair Value

— — —

$

— — —

$

$

$

50 (51) (1)

57 (60) (3)

See Note 3 for information regarding fair value measurement of our debt instruments. See Note 13 for information regarding fair value measurement of our derivatives. Nonrecurring Fair Value Measurements See Note 17 regarding nonrecurring fair value measurements. 111

Profile for Chesapeake Energy

2018 Annual Report  

2018 Annual Report