Restructuring Costs

12 Months Ended

Dec. 31, 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. During the second half of 2012, QEP incurred additional restructuring and reorganization costs related to consolidating various corporate and accounting functions to the Denver corporate headquarters. The creation of one office for QEP's Southern Region as well as consolidation of corporate and accounting functions is intended to increase efficiency, team-based collaboration and organizational productivity over the long term. As part of the reorganization, QEP incurred and will continue to incur costs associated with the severance, retention and relocation of employees, additional pension expenses, exit costs associated with the termination of operating leases arising from office space that will no longer be utilized by the Company and other expenses. The Company currently estimates that the remaining restructuring costs will be incurred during 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 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	$	3.3	$	—	$	0.2	$	3.5
Retention and relocation expense	5.4		0.2		0.2		5.8
Lease termination costs and other expenses	0.6		—		—		0.6
Total restructuring costs expected to be incurred	$	9.3	$	0.2	$	0.4	$	9.9

Total restructuring costs recognized in income for the year ended December 31, 2012
One-time termination benefits	$	2.9	$	—	$	0.1	$	3.0
Retention and relocation expense	3.4		—		—		3.4
Lease termination costs and other expenses	0.6		—		—		0.6
Total restructuring costs incurred during the year	$	6.9	$	—	$	0.1	$	7.0
ended December 31, 2012	$	6.9	$	—	$	0.1	$	7.0

In addition to the costs incurred above, during the year ended December 31, 2012, the Company recognized a curtailment loss of $2.2 million as part of its pension plan's net periodic benefit cost. The curtailment loss was a result of the Company's restructuring efforts and termination benefits and is included on the Consolidated Balance Sheet as part of the Company's pension liability. For additional information related to the Company's pension plans, see Note 11 - Employee Benefits. The following is a reconciliation of the restructuring liability, by line of business, which is included within "Accounts payable and accrued expenses" on the Consolidated Balance Sheets:



	QEP Energy			QEP Field Services		QEP Marketing			Total
	(in millions)
Balance at December 31, 2011	$	—		$	—	$	—		$	—
Costs incurred and charged to expense	6.9			—		0.1			7.0
Costs paid or otherwise settled	(5.9		)	—		(0.1		)	(6.0		)
Balance at December 31, 2012	$	1.0		—		—			$	1.0

- 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.

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