Restructuring and Related Activities

6 Months Ended

Jun. 30, 2015

Restructuring And Related Activities [Abstract]

Restructuring Costs

Note 17 - Restructuring Costs

In the second quarter of 2015, our Chemicals Segment initiated a restructuring plan designed to improve its long-term cost structure. A portion of such expected cost savings is planned to occur through workforce reductions.  During the second quarter of 2015 Kronos implemented certain voluntary and involuntary workforce reductions at certain of its facilities impacting approximately 110 individuals.  A substantial portion of such workforce reductions were accomplished through voluntary programs, for which eligible workforce reduction costs are recognized at the time both the employee and employer are irrevocably committed to the terms of the separation.  For involuntary programs, eligible costs are recognized when management approves the separation program, the affected employees are properly notified and the costs are estimable.  To the extent there is a statutorily-mandated notice period and the affected employee is not required to provide services to us during such notice period, severance and all wages during such notice period are accrued at the time of separation.  To the extent the affected employee is required to provide services to us during all or a portion of such notice period, the severance (and if applicable notice period wages for any period beyond the time the affected employee is required to provide future services to us) is accrued ratably over the period in which services will be provided.  We recognized an aggregate $21.1 million charge in the second quarter of 2015 for such workforce reductions Kronos had implemented through that date, $10.7 million of which is classified in cost of sales and $10.4 million of which is classified in selling, general and administrative expense.  For the workforce reductions implemented through June 30, 2015, an aggregate $.1 million will be accrued in the future (mostly in the second half of 2015) associated with affected individuals who are providing service to us past June 30, 2015.  All accrued severance costs at June 30, 2015 are expected to be paid through December 31, 2016.

A summary of the activity in our accrued workforce reduction costs for the first six months of 2015 is shown in the table below:

		Amount
		(in millions)
Accrued workforce reduction costs as of January 1, 2015	$	—
Workforce reduction costs accrued		21.1
Workforce reduction costs paid		(.4	)
Currency translation adjustments, net		.5
Accrued workforce reduction costs at June 30, 2015	$	21.2
Amounts recognized in the balance sheet:
Current liability	$	18.3
Noncurrent liability		2.9
	$	21.2