Restructuring Activities

On January 18, 2019, the Company announced a planned suspension of its Air Pollution Control (“APC”) business operation in China (“Beijing Fuel Tech”). This action is part of Fuel Tech’s ongoing operational improvement initiatives designed to prioritize resource allocation, reduce costs, and drive profitability for the Company on a global basis. The transition associated with the suspension of the APC business is underway, and includes staff rationalization, supplier and partner engagement, and the monetization of certain assets. The Company expects to complete the process during the second half of 2019.

The following table presents our revenues and net loss in China for the three month periods ended March 31, 2019 and 2018:



	2019			2018
Total revenues	$	338		$	659
Net loss	(850		)	(533		)

The following table presents net assets in China for the three months ended March 31, 2019 and 2018:



	2019			2018
Total assets	$	7,719		$	12,126
Total liabilities	(2,809		)	(4,642		)
Total net assets	4,910			7,484

Total assets primarily consist of accounts receivable, contract assets, inventory, prepaid expenses and property, plant and equipment. Total liabilities consist of accounts payable and certain accrued liabilities.

The Company expects to incur approximately $632 of severance costs relating to the suspension of the APC business in China, of which $257 was paid for the three months ended March 31, 2019 and $375 are expected to be paid in the second quarter of 2019.

On January 23, 2019, the Company notified the landlord of our intention to early terminate the lease on July 22, 2019. The Company incurred an early termination penalty of $63, which is included in restructuring expense and other accrued liabilities for the three months ended March 31, 2019. The Company expects to incur other disposal costs including contractual termination payments or other miscellaneous expenses but an estimated amount or range of amounts has not yet been determined.

The Company recorded restructuring charges of $595 and $0 for the three months ended March 31, 2019 and 2018, respectively. The charge consisted primarily of one-time severance costs of $532 and the early termination penalty for our lease associated with the suspension of our APC business in China of $63. The following is a reconciliation of the accrual for the workforce reduction that is included within the "Accrued Liabilities - Employee Compensation" line of the consolidated balance sheets for the three months ending March 31, 2019 and 2018:



	Three Months Ended March 31,
	2019			2018
Restructuring liability at beginning of period	$	65		$	391
Amounts expensed	595			—
Amounts paid	(287		)	(109		)
Restructuring liability at end of period	$	373		$	282