Restructuring Costs

3 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

In February 2018, QEP's Board of Directors approved certain strategic and financial initiatives. In February 2019, QEP's Board of Directors commenced a comprehensive review of strategic alternatives to maximize shareholder value. In connection with these activities, QEP has incurred various restructuring costs associated with contractual termination benefits including severance, accelerated vesting of share-based compensation and other expenses. The termination benefits are 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 March 31, 2020
	(in millions)
Termination benefits	$	1.0		$	1.0	$	—		$	—
Accelerated share-based compensation⁽¹⁾	0.2			0.2		—			—
Retention expense (including share-based compensation)	0.2			0.2		—			—
Total restructuring costs	$	1.4		$	1.4	$	—		$	—

	Three Months Ended March 31, 2019
Termination benefits	$	6.8		$	6.7	$	0.1		—
Office lease termination costs	0.6			0.6		—			—
Accelerated share-based compensation⁽¹⁾	8.4			6.9		1.5			—
Retention expense (including share-based compensation)	6.1			6.1		—			—
Pension and Medical Plan curtailment	(0.5		)	—		(0.2		)	(0.3		)
Total restructuring costs	$	21.4		$	20.3	$	1.4		$	(0.3	)

____________________________

⁽¹⁾

Accelerated share-based compensation represents the additional expense or loss recognized in the statement of operations for the three months ended March 31, 2020 and 2019. Total accelerated share-based compensation was $0.6 million and $8.8 million as of March 31, 2020 and 2019, respectively, and was determined based on the contractual vesting date, with $0.2 million and $8.4 million recognized during the three months ended March 31, 2020 and 2019, respectively, as shown above, and the remaining amount recognized in prior periods.



	Costs recognized from inception through March 31, 2020⁽¹⁾		Total remaining costs expected to be incurred
	(in millions)
Termination benefits	$	45.6	$	—
Office lease termination costs	1.6		—
Accelerated share-based compensation	23.8		—		⁽²⁾
Retention expense (including share-based compensation)	38.5		0.2
Pension and Medical Plan curtailment	1.3		—
Total restructuring costs	$	110.8	$	0.2

____________________________


⁽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 accelerated share-based compensation, as of March 31, 2020, 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 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, 2019	$	1.2		$	—	$	—		$	6.5		$	—	$	7.7
Costs incurred and charged to expense	1.0			—		0.2			0.2			—		1.4
Costs paid or otherwise settled	(1.0		)	—		(0.2		)	(6.5		)	—		(7.7		)
Balance at March 31, 2020	$	1.2		$	—	$	—		$	0.2		$	—	$	1.4