NOTE 5—RESTRUCTURING

To sustain profitability and growth, during the fourth quarter of 2017, we initiated Fit 2 Grow (“F2G”), a value improvement program to further reduce our costs. This initiative was undertaken to rationalize non-operating labor expenses and generate asset-based savings. Under F2G, we expect to incur approximately $3 million in restructuring costs and the effort is expected to be substantially complete in the second half of 2018. No substantial costs related to F2G were incurred in 2017.

Restructuring initiatives are driven and managed by our corporate management. Those costs are not allocated to our reportable segments and are reported under Corporate and Other.

Restructuring expenses are reported as a component of Other operating (income) expenses, net, in our Consolidated Statements of Operations. Previously, restructuring expenses were presented separately in our Consolidated Statements of Operations.

No substantial restructuring costs were incurred in 2017. The restructuring costs incurred in 2016 and 2015 and from inception to December 31, 2017, by major cost type is presented below.

	Year ended December 31,					Incurred from inception to
	2016			2015		December 31, 2017
	(In thousands)
Americas Restructuring	$	(1,350	)	$	2,308	$	6,883

McDermott Profitability Initiative
Severance and other personnel-related costs		2,590			15,217		17,807
Asset impairment and disposal		-			7,471		7,471
Legal and other advisor fees		222			7,414		11,639
Other		2,436			7,609		10,045
		5,248			37,711		46,962
Additional Overhead Reduction
Severance and other personnel-related costs		5,012			-		5,012
Legal and other advisor fees		1,968			800		2,768
Other		385			-		385
		7,365			800		8,165

Total	$	11,263		$	40,819	$	62,010