Restructuring and Severance

Liabilities have been established for employee separations and lease abandonment. A summary of activity in the restructuring and severance liability is shown below:



(dollars in millions)	Employee Separation			Lease Abandonment			Total
Balance as of December 31, 2017	$	14.4		$	0.1		$	14.5
Charges	0.3			—			0.3
Utilizations	(7.3		)	—			(7.3		)
Balance as of March 31, 2018	7.4			0.1			7.5
Charges	3.8			0.8			4.6
Utilizations	(0.9		)	—			(0.9		)
Balance as of June 30, 2018	10.3			0.9			11.2
Hawaiian Telcom opening balance sheet adjustment	3.8			—			3.8
Charges	—			—			—
Utilizations	(6.4		)	(0.1		)	(6.5		)
Balance as of September 30, 2018	$	7.7		$	0.8		$	8.5

An adjustment of $3.8 million was recorded for certain employees who received severance due to the change of control clause within their employment agreements that was triggered at the time of the merger of Hawaiian Telcom. Headcount related restructuring and severance charges of $4.1 million were recorded in the nine months ended September 30, 2018 and are related to costs incurred in order to recognize future synergies as the Company continues to identify efficiencies with the integration of OnX. In addition, a restructuring charge associated with lease abandonment of $0.8 million was recorded in the second quarter of 2018 related to an office space that will no longer be utilized. During the three and nine months ended September 30, 2018, the Company made severance payments related to employee separations associated with initiatives to reduce costs within our legacy copper network in the Entertainment and Communications segment, as well as headcount reductions in our IT Services and Hardware segment related to the integration with OnX.

Lease abandonment costs represent future minimum lease obligations, net of expected sublease income, for abandoned facilities. Lease payments on abandoned facilities will continue through 2020.

A summary of restructuring activity by business segment is presented below:



(dollars in millions)	Entertainment and Communications			IT Services and Hardware			Total
Balance as of December 31, 2017	$	12.3		$	2.2		$	14.5
Charges	—			0.3			0.3
Utilizations	(5.7		)	(1.6		)	(7.3		)
Balance as of March 31, 2018	6.6			0.9			7.5
Charges	—			4.6			4.6
Utilizations	(0.3		)	(0.6		)	(0.9		)
Balance as of June 30, 2018	6.3			4.9			11.2
Hawaiian Telcom opening balance sheet adjustment	3.8			—			3.8
Charges	—			—			—
Utilizations	(3.4		)	(3.1		)	(6.5		)
Balance as of September 30, 2018	$	6.7		$	1.8		$	8.5

At September 30, 2018 and December 31, 2017, $6.5 million and $12.0 million, respectively, of the restructuring liabilities were included in “Other current liabilities.” At September 30, 2018 and December 31, 2017, $2.0 million and $2.5 million, respectively, were included in "Other noncurrent liabilities."