Restructuring Charges

12 Months Ended

Dec. 31, 2015

Restructuring Charges [Abstract]

Restructuring Charges

Note 3. Restructuring Charges

In 2014, the Company initiated a restructuring program and undertook actions to realign its business operations, improve efficiencies, profitability, and return on invested capital. This restructuring impacted all business segments of the Company and is estimated to provide annualized savings of approximately $29 million (unaudited). This restructuring resulted in following charges relating to asset impairment and reduction in workforce:

Asset impairment charges:

The asset impairment charges in 2014 relate to the consolidation of certain manufacturing operations and administrative offices. The Company will close three Construction Technologies’ operations – two in Europe and one in Asia – and consolidate these operations into others in these regions. The Company will also close and consolidate the operations of one of the Performance Materials blending facilities in the U.S. The fair value of the associated assets was estimated using a discounted cash flow approach (a Level 3 fair value input).

In 2015, the Company recognized impairment charges for certain underutilized coiled tubing equipment within the Energy Services segment which have been abandoned by the Company.

Work force reduction:

In 2014, the Company announced a 10% permanent reduction of its workforce including elimination of duplicate corporate functions, deployment of our shared service model, and consolidation and alignment of various corporate functions and regional locations across the Company.

The following table outlines the amount of restructuring charges recorded within the Consolidated Statements of Income, and the segments they relate to:

Restructuring and Other Charges	Year Ended December 31, 2014
	2015		2014
	(millions of dollars)
Impairment of assets
Performance Materials	$	-	$	0.4
Construction Technologies		-		11.7
Energy Services		33.0		11.6
Corporate		1.2		-
Total impairment of assets charges	$	34.2	$	23.7
Severance and other employee costs
Specialty Minerals	$	-	$	3.0
Refractories		2.0		0.7
Performance Materials		-		5.6
Construction Technologies		-		5.8
Energy Services		9.0		3.7
Total severance and other employee costs	$	11.0	$	18.8
Other
Performance Materials	$	-	$	0.7
Total restructuring and other charges	$	45.2	$	43.2

At December 31, 2015, we had $7.9 million included within other current liabilities within our Consolidated Balance Sheets for cash expenditures needed to satisfy remaining obligations under these reorganization initiatives.  The Company expects to pay these amounts by the end of March 2016.

The following table is a reconciliation of our restructuring liability balance:

	(millions of dollars)
Restructuring liability, December 31, 2014	$	14.6
Additional provisions		11.0
Cash payments		(14.0	)
Other adjustments		(3.7	)
Restructuring liability,  December 31, 2015	$	7.9