Restructuring Costs

9 Months Ended

Sep. 30, 2012

During the first quarter 2012, QEP began incurring costs related to the closure of its Oklahoma City office and the subsequent consolidation of its Southern Region operations into a single regional office located in Tulsa. The creation of one office for QEP’s Southern Region is intended to increase regional efficiency, team-based collaboration and organizational productivity over the long term. During the third quarter of 2012, QEP incurred additional restructuring and reorganization costs related to consolidating various corporate and accounting functions to the Denver corporate headquarters. As part of the reorganization, QEP will incur costs associated with the severance, retention and relocation of employees and other exit costs associated with the termination of operating leases arising from office space that will no longer be utilized by the Company. The majority of the restructuring costs will be incurred during the remainder of 2012 and in 2013.

The following table summarizes, by line of business, each major type of costs expected to be incurred and the total amounts recorded in "General and administrative" expense on the Condensed Consolidated Statement of Operations the respective periods indicated:



	QEP Energy		QEP Field Services		QEP Marketing		Total
Restructuring costs expected to be incurred	(in millions)
One-time termination benefits	$	3.4	$	—	$	0.3	$	3.7
Retention & relocation expense	5.5		0.2		0.2		5.9
Lease termination costs	0.6		—		—		0.6
Total restructuring costs expected to be incurred	$	9.5	$	0.2	$	0.5	$	10.2

Total restructuring costs recognized in income during the current period
During the three months ended September 30, 2012
One-time termination benefits	$	0.2	$	—	$	—	$	0.2
Retention & relocation expense	—		—		—		—
Lease termination costs	—		—		—		—
Total restructuring costs incurred for the three months ended September 30, 2012	$	0.2	$	—	$	—	$	0.2

During the nine months ended September 30, 2012
One-time termination benefits	$	2.1	$	—	$	—	$	2.1
Retention & relocation expense	3.2		—		—		3.2
Lease termination costs	—		—		—		—
Total restructuring costs incurred for the nine months ended September 30, 2012	$	5.3	$	—	$	—	$	5.3

The following is a reconciliation of the restructuring liability, by line of business, which is included within “Accounts payable and accrued expenses” on the Condensed Consolidated Balance Sheets:



	QEP Energy			QEP Field Services		QEP Marketing		Total
	(in millions)
Balance at December 31, 2011	$	—		$	—	$	—	$	—
Costs incurred and charged to expense	5.3			—		—		5.3
Costs paid or otherwise settled	(5.1		)	—		—		(5.1		)
Balance at September 30, 2012	$	0.2		—		—		$	0.2

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References+ Details