CHANGES IN OPERATIONS:

North American Operations

Canada Lease Expirations: Two of the Company's short line railroad leases in Canada (Goderich-Exeter Railway (GEXR) and Southern Ontario Railway (SORR)) expired at the end of 2018. The Company's results for the three months ended March 31, 2018 included $5.5 million of revenues and no material impact on operating income from these leased railroads.

U.K./European Operations

U.K. Operations Optimization: In May 2018, the Company began a program to restructure and further optimize its operations in the U.K., which it intends to complete by 2020. The program includes the rationalization of the locomotive and railcar fleet, management restructuring (following the U.K. consultative process) and technology investments to upgrade systems to enhance productivity and service quality.

Restructuring and related costs associated with the optimization are expected to be approximately $34 million (at an exchange rate of $1.30 for one British pound) and are comprised of the following (dollars in thousands):



	Three Months Ended March 31, 2019		Total Costs Incurred Through March 31, 2019		Estimated Total Restructuring and Related Costs
Rationalization of locomotive and railcar fleet	$	—	$	6,301	$	8,000
Management restructuring^(a)	4,083		8,723		12,000
Productivity and automation investments	1,413		5,456		14,000
Total	$	5,496	$	20,480	$	34,000


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

Changes in restructuring and related liabilities for the U.K. Operations Optimization program for the three months ended March 31, 2019 was as follows (dollars in thousands):



	Rationalization of Locomotive and Railcar Fleet			Management Restructuring			Productivity and Automation Investments			Total
Restructuring and related liabilities as of December 31, 2018	$	4,094		$	982		$	—		$	5,076
Restructuring and related costs incurred	—			4,083			1,413			5,496
Cash payments	(352		)	(3,478		)	(1,413		)	(5,243		)
Non-cash settlements	—			—			—			—
Restructuring and related liabilities as of March 31, 2019	$	3,742		$	1,587		$	—		$	5,329

Continental Europe Intermodal Business: On June 5, 2018, the Company sold its Continental Europe intermodal business, ERS Railways B.V. (ERS), for gross cash proceeds of €11.2 million (or $13.1 million at the exchange rate on June 5, 2018) or €6.8 million (or $7.9 million at the exchange rate on June 5, 2018) net of €4.4 million (or $5.2 million at the exchange rate on June 5, 2018) of cash on hand that transferred to the buyer. The Company's results for the three months ended March 31, 2018 included $14.7 million of revenues and no material impact on operating income from ERS.