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Disposal and Exit Activities
12 Months Ended
Dec. 31, 2014
Restructuring and Related Activities [Abstract]  
Disposal and Exit Activities
DISPOSAL AND EXIT ACTIVITIES
In 2013, we decided to exit our distribution businesses in Argentina and Chile and in connection with this decision, we wrote down the related assets by approximately $50 million, pre-tax, to their estimated fair value. This amount was included in loss on write down of assets in the Consolidated Statement of Earnings in our Transition Report on Form 10-K filed with the SEC for the transition period from June 1, 2013 to December 31, 2013 (the "2013 10-K Report"). As a result of new information regarding the structure of the intended disposition of Argentina’s distribution business as an asset sale, during the twelve months ended December 31, 2014, we recorded a $53.6 million tax benefit. In the fourth quarter of 2014, we completed the sale of our Argentina assets and recorded a pre-tax gain of $8.5 million. Additionally, the decision was made in the second quarter of 2014 to close the Chile business and sell the remaining fixed assets. We recorded a pre-tax loss of $5.6 million related to the decision. The fixed assets related to Chile’s distribution businesses qualify for asset held for sale accounting. At December 31, 2014, we included $6.0 million in other current assets in our Condensed Consolidated Balance Sheet as assets held for sale. We expect to continue to sell our products in these countries by using other distribution channels. Completion of these exit activities is expected during the first half of 2015.
In 2013, we also decided to sell the salt operations of our Hersey, Michigan mine and close the related potash operations. In connection with the planned sale of this mine, we wrote down the related assets by approximately $48 million pre-tax, to their estimated fair value during the three months ended September 30, 2013, and recorded a corresponding tax benefit of approximately $17 million, which was reflected in the Consolidated Statement of Earnings in our 2013 10-K Report. The sale of the salt operations was completed on July 29, 2014 for $55.0 million, resulting in a pre-tax gain of $13.5 million in calendar 2014.
On July 21, 2014, we decided to permanently discontinue production of MOP at our Carlsbad, New Mexico facility. The final date for production was December 28, 2014. The decision was based on the quality of the ore in the Carlsbad basin and the age of the facility’s infrastructure. Our larger potash production facilities at Esterhazy, Belle Plaine and Colonsay in Saskatchewan, Canada will continue to produce MOP.
We plan to transition the Carlsbad facility to exclusive production of our highly valued K-Mag® product line. The pre-tax charges were $125.4 million, of which approximately $100 million related to accelerated depreciation and depletion in calendar 2014. We also recorded a tax benefit of approximately $52 million related to these costs in the year ended December 31, 2014.
During calendar 2014, we recorded severance charges and other personnel related costs of approximately $11 million in connection with the previously announced closing of our Hookers Prairie phosphate mine and certain cost saving initiatives. During calendar 2014, we paid approximately $9 million related to these costs, with the remaining amounts to be paid by March 31, 2015.