Restructuring Activities

On January 18, 2019, the Company announced a planned suspension of its Air Pollution Control (“APC”) business operation in China. 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 which has taken place through September 30, 2019 includes staff rationalization and reduction, supplier and partner engagement, and the monetization of certain assets. The remaining transition activities include the execution of the remaining activities to satisfy the requirements for the remaining APC projects in China (with a backlog totaling approximately $47) in addition to collection efforts for the remaining accounts receivable.

The following table presents our revenues and net loss (which includes the Restructuring charge line item within the Condensed Statements of Operations) in China as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Total revenues	$	—		$	1,066		$	311		$	2,406
Net loss	(80		)	(435		)	(1,469		)	(1,588		)

Total assets primarily consist of cash, accounts receivable, contract assets, prepaid expenses and other current assets. Total liabilities consist of accounts payable and certain accrued liabilities.

The following table presents net assets in China as follows:



	As of
	September 30, 2019			December 31, 2018
Total assets	$	4,308		$	8,546
Total liabilities	(266		)	(2,953		)
Total net assets	$	4,042		$	5,593

The Company incurred approximately $562 of severance costs relating to the suspension of the APC business in China, of which $90 and $562 were paid during the three and nine months ended September 30, 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 during the first quarter of 2019, which is included in restructuring expense for the nine months ended September 30, 2019.

The Company recorded restructuring charges of $0 and $625 for the three and nine months ended September 30, 2019 and $0 and $0 in 2018, respectively. The charge consisted primarily of one-time severance costs of $562 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 and nine months ending September 30, 2019 and 2018:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Restructuring liability at beginning of period	$	155		$	188		$	65		$	391
Amounts expensed	—			—			625			—
Amounts paid	(155		)	(93		)	(690		)	(296		)
Restructuring liability at end of period	$	—		$	95		$	—		$	95

The restructuring liability for the three and nine months ended September 30, 2018 relates to severance costs associated with the suspension of the Fuel Conversion business segment.