RESTRUCTURING CHARGES

On December 12, 2014, we announced that we had made the decision to permanently close the portion of the Becancour, Canada chlor alkali facility that has been shut down since late June 2014. This action reduces the facility’s chlor alkali capacity by 185,000 tons. Subsequent to the shutdown, the plant will predominantly focus on bleach and hydrochloric acid, which are value-added products, as well as caustic soda. In the fourth quarter of 2014, we recorded pretax restructuring charges of $10.0 million for the write-off of equipment and facility costs, employee severance and related benefit costs, lease and other contract termination costs and a non-cash pension curtailment charge related to these actions. For the three months ended September 30, 2015, we recorded pretax restructuring charges of $0.1 million for facility exit costs related to these actions. For the nine months ended September 30, 2015, we recorded pretax restructuring charges of $1.7 million for the write-off of equipment and facility costs, lease and other contract termination costs, facility exit costs and a non-cash pension curtailment charge related to these actions. We expect to incur additional restructuring charges through 2016 of approximately $4.0 million related to the shut down of this portion of the facility.

On December 9, 2010, our board of directors approved a plan to eliminate our use of mercury in the manufacture of chlor alkali products. Under the plan, the 260,000 tons of mercury cell capacity at our Charleston, TN facility was converted to 200,000 tons of membrane capacity capable of producing both potassium hydroxide and caustic soda. The board of directors also approved plans to reconfigure our Augusta, GA facility to manufacture bleach and distribute caustic soda, while discontinuing chlor alkali manufacturing at this site. The completion of these projects eliminated our chlor alkali production using mercury cell technology. For the three months ended September 30, 2014, we recorded pretax restructuring charges of $0.7 million for employee severance and related benefit costs, employee relocation costs and facility exit costs related to these actions. For the nine months ended September 30, 2014, we recorded pretax restructuring charges of $3.0 million for employee severance and related benefit costs, employee relocation costs, facility exit costs and write-off of equipment and facility related to these actions.

On November 3, 2010, we announced that we made the decision to relocate the Winchester centerfire pistol and rifle ammunition manufacturing operations from East Alton, IL to Oxford, MS. This relocation, when completed, is forecast to reduce Winchester’s annual operating costs by approximately $35 million to $40 million. Consistent with this decision we initiated an estimated $110 million five-year project, which includes approximately $80 million of capital spending. The capital spending was partially financed by $31 million of grants provided by the State of Mississippi and local governments. We currently expect to complete this relocation by the end of 2016. For the three months ended September 30, 2015 and 2014, we recorded pretax restructuring charges of $0.2 million and $0.5 million, respectively, for employee severance and related benefit costs, employee relocation costs and facility exit costs related to these actions. For the nine months ended September 30, 2015 and 2014, we recorded pretax restructuring charges of $0.5 million and $1.5 million, respectively, for employee severance and related benefit costs, employee relocation costs and facility exit costs related to these actions. We expect to incur additional restructuring charges through 2016 of approximately $1.0 million related to the transfer of these operations.

The following table summarizes the activity by major component of these 2014 and 2010 restructuring actions and the remaining balances of accrued restructuring costs as of September 30, 2015:



		Employee severance and job related benefits			Lease and other contract termination costs			Employee relocation costs			Facility exit costs			Write-off of equipment and facility			Total
		($ in millions)
Balance at January 1, 2014		$	10.2		$	—		$	—		$	—		$	—		$	10.2
	Restructuring charges:
	First quarter	0.2			—			0.1			0.7			—			1.0
	Second quarter	1.2			—			—			0.8			0.3			2.3
	Third quarter	0.5			—			0.3			0.4			—			1.2
	Amounts utilized	(1.9		)	—			(0.4		)	(1.9		)	(0.3		)	(4.5		)
Balance at September 30, 2014		$	10.2		$	—		$	—		$	—		$	—		$	10.2
Balance at January 1, 2015		$	11.2		$	4.5		$	—		$	—		$	—		$	15.7
	Restructuring charges:
	First quarter	—			0.7			0.1			0.2			0.2			1.2
	Second quarter	—			—			0.2			0.2			0.3			0.7
	Third quarter	—			—			0.1			0.2			—			0.3
	Amounts utilized	(5.2		)	(2.8		)	(0.4		)	(0.6		)	(0.5		)	(9.5		)
	Currency translation adjustments	(0.5		)	(0.2		)	—			—			—			(0.7		)
Balance at September 30, 2015		$	5.5		$	2.2		$	—		$	—		$	—		$	7.7

The following table summarizes the cumulative restructuring charges of these 2014 and 2010 restructuring actions by major component through September 30, 2015:



	Chlor Alkali Products				Winchester		Total
	Becancour		Mercury		Winchester		Total
	($ in millions)
Write-off of equipment and facility	$	3.5	$	17.8	$	—	$	21.3
Employee severance and job related benefits	2.3		5.6		13.1		21.0
Facility exit costs	0.3		15.6		2.2		18.1
Pension and other postretirement benefits curtailment	0.4		—		4.1		4.5
Employee relocation costs	—		0.9		5.1		6.0
Lease and other contract termination costs	5.2		0.7		—		5.9
Total cumulative restructuring charges	$	11.7	$	40.6	$	24.5	$	76.8

As of September 30, 2015, we have incurred cash expenditures of $35.9 million and non-cash charges of $32.5 million related to these restructuring actions. The remaining balance of $7.7 million is expected to be paid out through 2016.