Restructuring Costs

3 Months Ended

Mar. 31, 2012

Note 8 – Restructuring Costs

During the first quarter of 2012, QEP announced the closure of its Oklahoma City office and consolidation of its two division offices in Oklahoma into one regional office in Tulsa. The creation of one office for QEP's Southern Region will increase QEP's efficiency, collaboration, and productivity over the long-term. As part of the restructuring plan and closure of the Oklahoma City office, the Company will incur costs associated with the severance and relocation of employees and other exit costs associated with the termination of the operating lease of its Oklahoma City office space. All costs will be incurred by QEP Energy and are reported within QEP Energy's financial statements. QEP anticipates total restructuring costs to be approximately $5.8 million, with $1.7 million of those costs relating to one-time termination benefits, $3.6 million relating to the retention and relocation of certain employees to the Tulsa office, and the remaining $0.5 million for the termination of the lease for the Oklahoma City office space. During the three months ended March 31, 2012, a total of $2.7 million of restructuring costs were incurred and recorded in “General and administrative” expense on the Condensed Consolidated Income Statement, of which $1.1 million related to one-time termination benefits. The remaining one-time termination benefits will be recognized ratably over the remaining transition period. QEP expects to recognize the remaining costs not yet incurred in the remainder of 2012. The relocation costs and contract termination costs will be recorded in future periods as the costs are incurred. The following is a reconciliation of QEP Energy's restructuring liability, which is included within “Accounts payable and accrued expenses” on the Condensed Consolidated Balance Sheets.

	Restructuring Costs
	(in millions)
Balance at December 31, 2011	$	-
Costs incurred and charged to expense		2.7
Costs paid or otherwise settled		(2.4	)
Balance at March 31, 2012	$	0.3

- 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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