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Restructuring and Divestiture Costs
6 Months Ended
Jun. 30, 2016
Restructuring and Related Activities [Abstract]  
Restructuring and Divestiture Costs

4.    RESTRUCTURING AND DIVESTITURE COSTS

During the three and six month periods ended June 30, 2016, the Company had restructuring and divestiture costs pertaining to: (i) the sale of certain assets of its compound additives business, known as Solucor, and its manufacturing facility located in Concord, Ontario, in its chlorovinyls segment; (ii) the reorganization of its building products segment, including the sale of our window and door profiles reporting unit; (iii) the sale of its aromatics business; and (iv) workforce and other expense reductions to drive cost savings throughout the Company.

Chlorovinyls

During the three and six month periods ended June 30, 2016, our chlorovinyls segment incurred restructuring costs of $0.3 million and $10.4 million, respectively, primarily relating to severance and related payments in conjunction with our February 2016 workforce reduction activities and cost savings initiatives, and divestiture costs of $0.9 million and $20.8 million, respectively, primarily relating to the sales of its Solucor business and its Concord, Ontario manufacturing operations. During both the three and six month periods ended June 30, 2015, the Company recorded $0.4 million related to the sale of its specialty phosgene derivatives business.

On February 24, 2016, the Company entered into an asset purchase agreement among RGI and Axiall Corporation, as sellers, and Galata Chemicals (Canada) Inc., as Purchaser, for the sale of certain assets of its compound additives business, known as Solucor, and its manufacturing facility located in Bradford, Ontario, for a price of approximately $9.2 million, subject to adjustment based upon the amount of inventory of the Solucor business on the closing date of the transaction, which was February 29, 2016. The Company recognized a loss on the sale of $15.5 million that is recorded in restructuring and divestiture costs in our unaudited condensed consolidated statements of operations for the six months ended June 30, 2016. Also, in conjunction with the sale of our window and door profiles business in our building products segment, the sale of our Concord, Ontario compounding operations resulted in a loss on sale of $4.0 million that is recorded in restructuring and divestiture costs in our unaudited condensed consolidated statements of operations for the six months ended June 30, 2016.

Building Products

During the three and six months ended June 30, 2016, our building products segment incurred restructuring costs of $0.6 million and $2.7 million, respectively, primarily relating to severance payments in conjunction with our workforce reduction activities and cost savings initiatives, and divestiture costs of $0.7 million and $1.1 million, respectively, primarily related to the strategic review of our building products segment, which we terminated subsequent to the announced Merger between Axiall and Westlake. During the three and six month periods ended June 30, 2015, our building products segment did not incur material restructuring and divestiture charges. During the six months ended June 30, 2015 our building products segment incurred $0.3 million of long-lived asset impairment charges pertaining to its window and door profiles reporting unit.

Corporate

Restructuring charges primarily related to severance payments in conjunction with our workforce reduction activities and cost savings initiatives. Restructuring costs in corporate, unallocated totaled $0.8 million and $2.6 million for the three and six month periods ended June 30, 2016, respectively. There were no similar costs during the three and six month periods ended June 30, 2015. Also, as of June 30, 2016, we made cash payments of $3.2 million related to the separation of executives under the terms of the Company’s severance plans and policies. As of June 30, 2016, we had remaining payments of $0.9 million that are expected to conclude by November 2016.

Divestiture charges primarily related to costs associated with the strategic review of our building products segment as announced in the third quarter of 2015 and the sale of certain non-core business operations. The Company has terminated its strategic review of the building products segment subsequent to the announced execution of the Merger Agreement between Axiall and Westlake. Divestiture costs in corporate, unallocated were $1.2 million and $3.6 million during the three and six month periods ended June 30, 2016. There were no similar costs during the three and six months ended June 30, 2015.