XML 31 R17.htm IDEA: XBRL DOCUMENT v3.19.2
Restructuring Costs
 6 Months Ended
Jun. 30, 2019
Restructuring [Abstract]  
Restructuring and Related Activities Disclosure [Text Block] QEP has incurred or expects to incur various restructuring costs associated with contractual termination benefits including severance, accelerated vesting of share-based compensation and other expenses. The termination benefits will be accounted for under ASC 712, Compensation – Nonretirement Postemployment Benefits and ASC 718, Compensation – Stock Compensation.

Restructuring costs recognized are summarized below:
 
Total recognized
 
Recognized in "General and administrative"
 
Recognized in "Net gain (loss) from asset sales, inclusive of restructuring costs"
 
Recognized in "Interest and other income (expense)"
 
Three Months Ended June 30, 2019
 
(in millions)
Termination benefits
$
(0.1
)
 
$
(0.1
)
 
$
—

 
$
—

Office lease termination costs
—

 
—

 
—

 
—

Accelerated share-based compensation(1)
1.3

 
1.3

 
—

 
—

Retention expense (including share-based compensation)
4.8

 
4.8

 
—

 
—

Pension and Medical Plan curtailment
0.1

 
—

 
—

 
0.1

Total restructuring costs
$
6.1

 
$
6.0

 
$
—

 
$
0.1

 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2019
 
 
 
 
 
 
 
 
Termination benefits
$
6.7

 
$
6.6

 
$
0.1

 
$
—

Office lease termination costs
0.6

 
0.6

 
—

 
—

Accelerated share-based compensation(1)
9.7

 
8.2

 
1.5

 
—

Retention expense (including share-based compensation)
10.9

 
10.9

 
—

 
—

Pension and Medical Plan curtailment
(0.4
)
 
—

 
(0.2
)
 
(0.2
)
Total restructuring costs
$
27.5

 
$
26.3

 
$
1.4

 
$
(0.2
)
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2018
Termination benefits
$
3.6

 
$
1.7

 
$
1.9

 
—

Office lease termination costs
0.3

 
0.3

 
—

 
—

Accelerated share-based compensation
1.2

 
1.2

 
—

 
—

Retention expense (including share-based compensation)
6.3

 
6.3

 
—

 
—

Total restructuring costs
$
11.4

 
$
9.5

 
$
1.9

 
$
—

 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2018
Termination benefits
$
7.0

 
$
5.1

 
$
1.9

 
—

Office lease termination costs
0.3

 
0.3

 
—

 
—

Accelerated share-based compensation
4.0

 
4.0

 
—

 
—

Retention expense (including share-based compensation)
8.0

 
8.0

 
—

 
—

Total restructuring costs
$
19.3

 
$
17.4

 
$
1.9

 
$
—


 ____________________________
(1) 
Accelerated share-based compensation represents the additional expense or loss recognized in the Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2019. Total accelerated share based compensation was $2.8 million and $21.7 million for the three and six months ended June 30, 2019, respectively, and was determined based on the contractual vesting date, with $1.3 million and $9.7 million recognized during the three and six months ended June 30, 2019, respectively, as shown above, and the remaining amount recognized in prior periods.





 
Costs recognized from inception to June 30, 2019(1)
 
Total remaining costs expected to be incurred
 
 
(in millions)
 
Termination benefits
$
38.9

 
$
—

(2) 
Office lease termination costs
1.6

 
—

(2) 
Accelerated share-based compensation
21.0

 
—

(2) 
Retention expense (including share-based compensation)
29.7

 
10.1

 
Pension and Medical Plan curtailment
(0.2
)
 
—

(2) 
Total restructuring costs
$
91.0

 
$
10.1

 
 ____________________________
(1) 
Represents costs incurred since February 2018 when QEP's Board of Directors approved certain strategic and financial initiatives.
(2) 
Due to the nature of the strategic initiatives, as of June 30, 2019, the Company is not able to reasonably estimate the total cost to be incurred in connection with these restructurings.

The following table is a reconciliation of QEP's restructuring liability, which is included within "Accounts payable and accrued expenses" on the Condensed Consolidated Balance Sheets.
 
Restructuring liability
 
Termination benefits
 
Office lease termination costs
 
Accelerated share-based compensation
 
Retention expense
 
Pension curtailment
 
Total
 
(in millions)
Balance at December 31, 2018
$
19.5

 
$
—

 
$
—

 
$
10.8

 
$
—

 
$
30.3

Costs incurred and charged to expense
6.7

 
0.6

 
9.7

 
10.9

 
(0.4
)
 
27.5

Costs paid or otherwise settled
(23.9
)
 
(0.6
)
 
(9.7
)
 
(15.9
)
 
0.4

 
(49.7
)
Balance at June 30, 2019
$
2.3

 
$
—

 
$
—

 
$
5.8

 
$
—

 
$
8.1