Restructuring Costs

3 Months Ended

Mar. 31, 2014

In December 2013, QEP announced its plan to pursue a separation of its midstream business, QEP Field Services. In connection with this announcement, the Board of Directors approved an employee retention plan to provide substantially all QEP Field Services' employees as of December 1, 2013, with a one-time lump-sum cash payment on December 31, 2014, or whenever the separation of QEP Field Services occurs, whichever is earlier, conditioned on continued employment with QEP Field Services or a successor through the payment date unless the employee is terminated prior to such date.

During the first quarter of 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 the consolidation of corporate and accounting functions increased efficiency, team-based collaboration and organizational productivity. As part of the reorganization, QEP incurred 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. All remaining restructuring costs related to the office consolidations were incurred during 2013.

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



	Total Restructuring Costs
	Total Expected to be Incurred		Recognized in Income
			Period from Inception to March 31, 2014		Three Months Ended March 31,
			Period from Inception to March 31, 2014		2014		2013
QEP Energy	(in millions)
One-time termination benefits	$	3.3	$	3.3	$	—	$	0.2
Retention & relocation expense	3.7		3.7		—		0.1
Lease termination costs	0.6		0.6		—		—
Total restructuring costs	$	7.6	$	7.6	$	—	$	0.3

QEP Field Services
One-time termination benefits	$	—	$	—	$	—	$	—
Retention & relocation expense	10.1		3.2		2.3		—
Lease termination costs	—		—		—		—
Total restructuring costs	$	10.1	$	3.2	$	2.3	$	—

QEP Marketing
One-time termination benefits	$	0.3	$	0.3	$	—	$	0.1
Retention & relocation expense	—		—		—		—
Lease termination costs	—		—		—		—
Total restructuring costs	$	0.3	$	0.3	$	—	$	0.1

Total QEP
One-time termination benefits	$	3.6	$	3.6	$	—	$	0.3
Retention & relocation expense	13.8		6.9		2.3		0.1
Lease termination costs	0.6		0.6		—		—
Total restructuring costs	$	18.0	$	11.1	$	2.3	$	0.4

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, 2013	$	—	$	0.8	$	—	$	0.8
Costs incurred and charged to expense	—		2.3		—		2.3
Costs paid or otherwise settled	—		—		—		—
Balance at March 31, 2014	$	—	3.1		—		$	3.1

- 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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