Although relocation costs for crews and equipment are expected to eat into the margin in North America in Q1 2012, the shift will help companies boost revenues in the long term by riding on the oil boom in the Bakken shale.
The funds, contingent on the company reaching certain job milestones, will be used to purchase equipment, making facility upgrades, train employees and offset relocation costs.
These relocation expenses are associated with accelerated depreciation of property and equipment, incremental rent during a transition period (the move will occur in the second quarter), and payments related to terminating leases for certain floors in existing buildings.