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 fourth quarter 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.

The total expected restructuring costs, the restructuring costs recognized in prior periods, the restructuring costs recognized during the three months ended March 31, 2016, and the remaining expected restructuring costs as of March 31, 2016 related to the 2014 Projects were as follows:



	Total Expected Costs at March 31, 2016		Costs Recognized in Prior Periods		Costs Recognized During the Three Months Ended March 31, 2016			Remaining Costs to be Recognized at March 31, 2016
	(in thousands)
Employee severance costs	$	35,400	$	34,373	$	1,027		$	—
Asset impairments & net loss on sale or disposal	9,994		8,880		1,114			—
Other restructuring costs	6,045		3,929		96			2,020
Total	$	51,439	$	47,182	$	2,237		$	2,020

Segments:
Electricity	$	24,098	$	21,743	$	528		$	1,827
Gas	13,206		11,855		1,264			87
Water	1,891		1,940		(64		)	15
Corporate unallocated	12,244		11,644		509			91
Total	$	51,439	$	47,182	$	2,237		$	2,020

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 projects are not material to our operating segments or consolidated results.

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.

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 fourth quarter of 2016 and begin recognizing full savings in 2017. While project activities are expected to continue through September 2016, 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.

The following table summarizes the activity within the restructuring related balance sheet accounts for the 2014 and 2013 Projects during the three months ended March 31, 2016:



	Accrued Employee Severance			Asset Impairments & Net Loss on Sale or Disposal			Other Accrued Costs			Total
	(in thousands)
Beginning balance, January 1, 2016	$	26,533		$	—		$	3,048		$	29,581
Costs charged to expense	1,027			1,114			96			2,237
Cash payments	(5,323		)	—			(188		)	(5,511		)
Non-cash items	—			(1,114		)	—			(1,114		)
Effect of change in exchange rates	352			—			(90		)	262
Ending balance, March 31, 2016	$	22,589		$	—		$	2,866		$	25,455

The current portions of the restructuring related liability balances were $21.6 million and $25.2 million as of March 31, 2016 and December 31, 2015. 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 $3.9 million and $4.4 million as of March 31, 2016 and December 31, 2015. 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.