Restructuring Expenses and Repositioning Expenses

6 Months Ended

Jun. 30, 2019

Restructuring and Related Activities [Abstract]

Restructuring Expenses and Repositioning Expenses

Restructuring Expenses    Restructuring costs in 2019 primarily related to severance costs pertaining to the idling of our methanol-to-olefins (“MTO”) manufacturing facility in China, which were substantially paid by June 30, 2019. Restructuring costs in 2018 primarily related to plant exit costs and severance costs pertaining to sales force reorganization. These costs are included in “restructuring and repositioning expenses” in the Consolidated Statements of Operations, and are not included in segment operating income.

The following table presents restructuring expenses by reportable segment for the three and six months ended June 30, 2019 and 2018.

	Three Months Ended June 30,					Six Months Ended June 30,
(In millions)	2019			2018		2019			2018
Catalysts Technologies	$	1.9		$	1.0	$	2.1		$	1.5
Materials Technologies	0.2			—		1.2			0.4
Corporate	(0.2		)	—		(0.3		)	0.1
Total restructuring expenses	$	1.9		$	1.0	$	3.0		$	2.0

The following table presents components of the change in the restructuring liability from December 31, 2018, to June 30, 2019.

	(In millions)
Balance, December 31, 2018	$	10.7
Accruals for severance and other costs	3.0
Payments	(6.3		)
Balance, June 30, 2019	$	7.4

Substantially all costs related to the restructuring programs are expected to be paid by December 31, 2021, but could be paid earlier subject to negotiations around certain plant exit costs.

Repositioning Expenses    Repositioning expenses for the three and six months ended June 30, 2019, were $4.5 million and $5.7 million compared with $17.8 million and $22.4 million for the corresponding prior-year periods. These expenses primarily related to a multi-year program to transform manufacturing and business processes to extend Grace’s competitive advantages and improve its cost position. Substantially all of these expenses have been or are expected to be settled in cash.