Table of Contents Index to Financial Statements (12) ASSET RETIREMENT OBLIGATIONS The following table summarizes the Company’s 2019 and 2018 activity related to asset retirement obligations: (1) Obligations settled/removed include $111 million related to asset divestitures in 2018, of which $107 million related to the Fayetteville Shale sale. The Company has a 401(k) defined contribution plan covering eligible employees. The Company expensed $2 million, $3 million and $3 million of contribution expense in 2019, 2018 and 2017, respectively. Additionally, the Company capitalized $1 million of contributions in 2019 and $2 million in both 2018 and 2017, directly related to the acquisition, exploration and development activities of the Company’s natural gas and oil properties or directly related to the construction of the Company’s gathering systems. Prior to January 1, 1998, the Company maintained a traditional defined benefit plan with benefits payable based upon average final compensation and years of service. Effective January 1, 1998, the Company amended its pension plan to become a “cash balance” plan on a prospective basis for its non-bargaining employees. A cash balance plan provides benefits based upon a fixed percentage of an employee’s annual compensation. The Company’s funding policy is to contribute amounts which are actuarially determined to provide the plans with sufficient assets to meet future benefit payment requirements and which are tax deductible. The postretirement benefit plan provides contributory health care and life insurance benefits. Employees become eligible for these benefits if they meet age and service requirements. Generally, the benefits paid are a stated percentage of medical expenses reduced by deductibles and other coverages. Substantially all of the Company’s employees are covered by the defined benefit pension and postretirement benefit plans. The Company accounts for its defined benefit pension and other postretirement plans by recognizing the funded status of each defined pension benefit plan and other postretirement benefit plan on the Company’s balance sheet. In the event a plan is overfunded, the Company recognizes an asset. Conversely, if a plan is underfunded, the Company recognizes a liability. In June 2018, the Company notified affected employees of a workforce reduction plan, which resulted primarily from a previously announced study of structural, process and organizational changes to enhance shareholder value. In December 2018, the Company closed the sale of the equity in certain of its subsidiaries that owned and operated its Fayetteville Shale E&P and related midstream gathering assets in Arkansas. As part of this transaction, many employees associated with those assets were either transferred to the buyer or their employment was terminated. As a result of the restructurings, the Company recognized a curtailment on its pension and other postretirement benefit plans and recognized a non-cash gain of $4 million on its consolidated statements of operations for the year ended December 31, 2018. In 2019, the Company recognized a $6 million non-cash settlement loss related to $21 million of lump sum payments as a result of these restructuring events. 109 Defined Benefit Pension and Other Postretirement Plans 401(k) Defined Contribution Plan (13) RETIREMENT AND EMPLOYEE BENEFIT PLANS (in millions) 2019 2018 Asset retirement obligation at January 1 $ 61  $ 165  Accretion of discount 3  9  Obligations incurred 2  1  Obligations settled/removed  (1) (9) (116) Revisions of estimates —  2  Asset retirement obligation at December 31 $ 57  $ 61  Current liability $ 6  $ 6  Long-term liability 51  55  Asset retirement obligation at December 31 $ 57  $ 61 