Restructuring

9 Months Ended

Sep. 30, 2018

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

2018 Projects

On February 22, 2018, our Board of Directors approved a restructuring plan (the 2018 Projects) to continue our efforts to optimize our global supply chain and manufacturing operations, research and development, and sales and marketing organizations. We expect to substantially complete the plan by the end of 2020. Many of the affected employees are represented by unions or works councils, which require consultation, and potential restructuring projects may be subject to regulatory approval, both of which could impact the timing of charges, total expected charges, cost recognized, and planned savings in certain jurisdictions.

The total expected restructuring costs, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2018 Projects are as follows:

	Total Expected Costs at September 30, 2018		Costs Recognized During the Nine Months Ended September 30, 2018		Expected Remaining Costs to be Recognized at September 30, 2018
	(in thousands)
Employee severance costs	$	81,669	$	81,669	$	—
Asset impairments & net loss on sale or disposal	115		115		—
Other restructuring costs	19,356		1,280		18,076
Total	$	101,140	$	83,064	$	18,076
Segments:
Electricity	$	20,609	$	19,109	$	1,500
Gas	52,289		41,583		10,706
Water	21,804		15,934		5,870
Corporate unallocated	6,438		6,438		—
Total	$	101,140	$	83,064	$	18,076

2016 Projects

On September 1, 2016, we announced projects (2016 Projects) to restructure various company activities in order to improve operational efficiencies, reduce expenses and improve competitiveness. We expect to close or consolidate several facilities and reduce our global workforce as a result of the restructuring. The 2016 Projects were initiated during the third quarter of 2016, and we expect to substantially complete the 2016 Projects by the end of 2018.

The total expected restructuring costs, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2016 Projects are as follows:

	Total Expected Costs at September 30, 2018		Costs Recognized in Prior Periods		Costs Recognized During the Nine Months Ended September 30, 2018			Expected Remaining Costs to be Recognized at September 30, 2018
	(in thousands)
Employee severance costs	$	37,197	$	39,855	$	(2,658	)	$	—
Asset impairments & net loss on sale or disposal	5,375		4,922		453			—
Other restructuring costs	16,064		9,435		2,049			4,580
Total	$	58,636	$	54,212	$	(156	)	$	4,580
Segments:
Electricity	$	11,029	$	9,025	$	696		$	1,308
Gas	30,287		29,181		(791		)	1,897
Water	14,678		13,761		(302		)	1,219
Corporate unallocated	2,642		2,245		241			156
Total	$	58,636	$	54,212	$	(156	)	$	4,580

The following table summarizes the activity within the restructuring related balance sheet accounts for the 2018 and 2016 Projects during the nine months ended September 30, 2018:

	Accrued Employee Severance			Asset Impairments & Net Loss on Sale or Disposal			Other Accrued Costs			Total
	(in thousands)
Beginning balance, January 1, 2018	$	37,654		$	—		$	2,471		$	40,125
Costs charged to expense	79,011			568			3,329			82,908
Cash (payments) receipts	(23,302		)	332			(4,478		)	(27,448		)
Net assets disposed and impaired	—			(900		)	—			(900		)
Effect of change in exchange rates	(3,996		)	—			(2		)	(3,998		)
Ending balance, September 30, 2018	$	89,367		$	—		$	1,320		$	90,687

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.

The current portion of restructuring liabilities were $42.2 million and $32.5 million as of September 30, 2018 and December 31, 2017. The current portion of restructuring liabilities are classified within other current liabilities on the Consolidated Balance Sheets. The long-term portion of restructuring liabilities balances were $48.5 million and $7.6 million as of September 30, 2018 and December 31, 2017. The long-term portion of restructuring liabilities are classified within other long-term obligations on the Consolidated Balance Sheets, and include severance accruals and facility exit costs.