Restructuring

2014 Projects

In November 2014, our management approved restructuring projects (2014 Projects) to restructure our Electricity business and related general and administrative activities, along with certain Gas and Water activities, to improve operational efficiencies and reduce expenses. The 2014 Projects include consolidation of certain facilities and reduction of our global workforce. The improved structure will position us to meet our long-term profitability goals by better aligning global operations with markets where we can serve our customers profitably.

We began implementing these projects in the fourth quarter of 2014, and we expect to substantially complete these projects by the end of 2016. Certain aspects of the projects are subject to a variety of labor and employment laws, rules, and regulations, which could result in a delay in completing the projects at some locations. During the quarter ended March 31, 2015, the total expected restructuring costs decreased by approximately $6.9 million. This includes $5.4 million in restructuring expense release, recognized in the first quarter of 2015, primarily resulting from employees, originally identified to be terminated, voluntarily resigning or filling vacant positions in different departments or locations. The remainder of the change in expected costs results from the translation impact of foreign exchange rates.

The total expected restructuring costs, the restructuring costs recognized during the three months ended March 31, 2015, and the remaining expected restructuring costs as of March 31, 2015 were as follows:



	Total Expected Costs at March 31, 2015		Costs Recognized in Prior Periods		Costs Recognized During the Three Months Ended March 31, 2015			Remaining Costs to be Recognized at March 31, 2015
	(in thousands)
Employee severance costs	$	41,431	$	47,447	$	(6,016	)	$	—
Asset impairments	8,219		7,952		267			—
Other restructuring costs	10,140		401		302			9,437
Total	$	59,790	$	55,800	$	(5,447	)	$	9,437

Segments:
Electricity	$	35,316	$	29,660	$	(3,127	)	$	8,783
Gas	12,918		12,185		502			231
Water	1,249		1,106		117			26
Corporate unallocated	10,307		12,849		(2,939		)	397
Total	$	59,790	$	55,800	$	(5,447	)	$	9,437

The following table summarizes the activity within the restructuring related balance sheet accounts during the three months ended March 31, 2015:



	Accrued Employee Severance			Asset Impairments & Net Loss on Sale or Disposal			Other Accrued Costs			Total
	(in thousands)
Beginning balance, January 1, 2015	$	59,333		$	—		$	3,526		$	62,859
Costs incurred and charged to expense	(6,016		)	267			302			(5,447		)
Cash payments	(3,209		)	—			(480		)	(3,689		)
Non-cash items	—			(267		)	—			(267		)
Effect of change in exchange rates	(5,702		)	—			(98		)	(5,800		)
Ending balance, March 31, 2015	$	44,406		$	—		$	3,250		$	47,656

Other restructuring costs include expenses for employee relocation, professional fees associated with employee severance, and costs to exit the facilities once the operations in those facilities have ceased. Costs associated with restructuring activities are generally presented in the Consolidated Statements of Operations as restructuring, except for certain costs associated with inventory write-downs, which are classified within cost of revenues, and accelerated depreciation expense, which is recognized according to the use of the asset.

The current portions of the restructuring related liability balances were $40.7 million and $49.1 million as of March 31, 2015 and December 31, 2014. The current portion of the liability is classified within "Other current liabilities" on the Consolidated Balance Sheets. The long-term portions of the restructuring related liability balances were $6.9 million and $13.8 million as of March 31, 2015 and December 31, 2014. The long-term portion of the restructuring liability is classified within "Other long-term obligations" on the Consolidated Balance Sheets, and includes facility exit costs and severance accruals.

Asset impairments are determined at the asset group level. Revenues and net operating income from the activities we have exited or will exit under the restructuring plan are not material to our operating segments or consolidated results.

2013 Projects

In September 2013, our management approved projects (the 2013 Projects) to restructure our operations to improve profitability and increase efficiencies. We began implementing these projects in the third quarter of 2013, and we expect to substantially complete project activities by the middle of 2015 and begin recognizing full savings in 2016. While project activities are expected to continue through June 2015, no further costs are expected to be recognized.

The 2013 Projects resulted in approximately $26.2 million of restructuring expense, which was recognized from the third quarter of 2013 through the fourth quarter of 2014.