Restructuring Expenses and Repositioning Expenses

12 Months Ended

Dec. 31, 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 in 2019. Costs in 2018 primarily related to the closure of two small manufacturing plants, the activities from which were moved to larger, more cost-effective plants as part of Grace’s strategy to capture synergies from catalysts acquisitions. Costs in 2017 primarily related to workforce reduction programs in Grace’s manufacturing, supply chain, finance and IT functions. 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 years ended December 31, 2019, 2018, and 2017.

	Year Ended December 31,
(In millions)	2019		2018			2017
Catalysts Technologies	$	1.6	$	13.7		$	3.7
Materials Technologies	1.0		0.5			(0.1		)
Corporate	—		(0.2		)	7.9
Total restructuring expenses	$	2.6	$	14.0		$	11.5

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.

The following table presents components of the change in the restructuring liability for the years ended December 31, 2019, 2018, and 2017:

(In millions)	Total
Balance, December 31, 2016	$	9.6
Accruals for severance and other costs	11.4
Payments	(14.4		)
Currency translation adjustments and other	0.1
Balance, December 31, 2017	$	6.7
Accruals for severance and other costs	10.1
Payments	(6.1		)
Balance, December 31, 2018	$	10.7
Accruals for severance and other costs	2.6
Payments	(10.2		)
Currency translation adjustments and other	0.7
Balance, December 31, 2019	$	3.8

Repositioning Expenses    Repositioning expenses for the years ended December 31, 2019, 2018, and 2017 were $11.1 million, $32.4 million, and $15.2 million respectively.

Expenses incurred in 2019, 2018, and 2017 relate to a multi-year program to transform manufacturing and business processes to extend Grace’s competitive advantages and improve its cost position. Expenses in 2018 also included $11.7 million of severance and stock compensation costs related to employee separations, and write-offs of $8.5 million of previously capitalized plant engineering costs as a result of terminating a manufacturing plant expansion project no longer necessary due to the polyolefin catalysts acquisition (see Note 20). Expenses in 2017 also included costs related to the Separation. Excluding asset write-offs and stock compensation costs, substantially all of these costs have been or are expected to be settled in cash.