Subsequent Events (Notes)

3 Months Ended

Mar. 31, 2018

SUBSEQUENT EVENTS:

U.K. Operations Optimization

On May 1, 2018, the Company announced that it had reorganized its U.K. business into three service platforms: Rail (Intermodal and Heavy Haul), Road (former Freightliner and Pentalver road operations) and Terminals (former Freightliner and Pentalver terminals), with a single combined commercial organization responsible for selling all three services. It also announced a program to restructure and further optimize its operations in the U.K. The Company intends to complete the restructuring and optimization program by early 2019. The program includes the rationalization of the locomotive and wagon fleet, management restructuring (following the U.K. consultative process), and technology investments to upgrade systems to enhance productivity and service quality. Restructuring and related expense associated with the optimization is expected to be approximately $55 million (assuming an exchange rate of $1.40 for one British pound) and is comprised of the following (dollars in thousands):



	Estimated Restructuring and Related Costs
Rationalization of locomotive and wagon fleet	$	29,000
Management restructuring^(a)	9,000
Productivity and automation investments	17,000
Total	$	55,000

(a) Subject to requisite U.K. consultative process.

Sale of ERS

On May 1, 2018, the Company announced that it signed an agreement to sell ERS, the Company's Continental Europe intermodal business, for €10.4 million. The Company expects the transaction to close in the second quarter of 2018, subject to regulatory approval.