Restructuring Activities

6 Months Ended

Jun. 30, 2012

15.

Restructuring Activities

Green River, Wyoming

During the first quarter of 2011, the Company announced its decision to relocate a portion of its Green River, Wyoming operations to a newly leased site in Victorville, California (the “Victorville Facility”). The Company relocated its cat litter manufacturing operations and distribution center to the Victorville Facility to be closer to transportation hubs and its west coast customers. The Victorville Facility began producing liquid laundry detergent and cat litter during the second quarter of 2012, and is expandable to meet future business needs. The Company’s sodium bicarbonate operations and other consumer product manufacturing will remain at the Green River facility.

The Company invested approximately $11 million in 2011 and expects to invest an aggregate of approximately $35 million in capital expenditures in connection with the Victorville Facility. The Company will also incur approximately $6 million in transition expenses through 2012 in connection with the opening of the Victorville Facility and costs associated with the changes anticipated at the Green River facility. The transition expenses include anticipated severance costs and accelerated depreciation of equipment at the Company’s Green River facility and one-time project expenses.

The Company recorded approximately $0.6 million of accelerated depreciation expense and $1.3 million of transition costs in cost of sales during the first six months of 2012. The Company recorded approximately $2.3 million of accelerated depreciation expense and $1.2 million of transition costs in cost of sales for the year ended 2011. These expenditures were being recorded in the Consumer Domestic segment.

Other Restructuring Costs

The Company does not anticipate any material expenditures in addition to the amounts reported in the Company’s Form 10-K in connection with the closing of its North Brunswick and International facilities. The costs incurred and recognized during the six months ended June 30, 2012 relating to the North Brunswick and International facilities were immaterial.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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