Accrued and Other Liabilities
|6 Months Ended|
Jun. 30, 2020
|Payables and Accruals [Abstract]|
|Accrued and Other Liabilities||
NOTE 8 — ACCRUED AND OTHER LIABILITIES
The components of accrued and other liabilities consist of the following (in thousands):
Severance and Reorganization
We implemented a cost reduction and reorganization plan (the “Reorganization Plan”) during the first quarter of 2020, and have incurred approximately $0.9 million and $6.4 million as of the three and six months ended June 30, 2020, respectively, of severance and reorganization charges due to reductions in workforce. The Reorganization Plan was implemented due to the sharp decline in oil and natural gas prices as well as the growing negative economic effects of the COVID-19 pandemic. The charges are presented within the caption Severance and reorganization charges on our Condensed Consolidated Statement of Operations. We expect to settle the remaining termination benefits by September 30, 2020. The severance and reorganization cash amounts provided to former employees have been settled and the remaining $1.9 million will be settled with the continued transfer of 1.6 million restricted stock units to former employees that may be settled, at our election, with either cash, stock or a combination thereof. We have settled $4.5 million of the severance and reorganization charges as of June 30, 2020.
The entire disclosure for accounts payable and accrued liabilities at the end of the reporting period.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef