Note 4 — EMPLOYEE SEPARATION AND RESTRUCTURING COSTS

In 2013, PolyOne determined it would close seven former Spartech manufacturing facilities and one administrative office and relocate production to other PolyOne facilities. The manufacturing facilities’ closings are part of the Company’s ongoing integration of Spartech, which are designed to enable the Company to better serve customers, improve efficiency, and deliver a portion of the anticipated synergy-related cost savings in connection with the Spartech acquisition. In addition to these actions, PolyOne incurred severance costs related to former Spartech executives and other employees, as well as fixed asset-related charges and other ongoing costs associated with restructuring actions that were underway prior to PolyOne's acquisition of Spartech. We also incurred costs associated with further asset rationalization at Spartech locations that were not part of the above actions.

The Company has incurred $103.8 million of charges in connection with the Spartech actions noted above. These costs include $26.2 million of severance, $40.9 million of asset-related charges, including accelerated depreciation, and $36.7 million of other ongoing costs. We expect to incur an additional $15.0 million of costs related to these actions, primarily in the first half of 2015.

The table below summarizes restructuring activity related to Spartech since the date of acquisition.



(In millions)	Long-Lived Asset Charges			Employee Separation			Other Ongoing Costs			Total
Accrual balance at December 31, 2012	$	—		$	—		$	—		$	—
Charged to expense	13.6			21.1			9.4			44.1
Cash payments	—			(6.0		)	(9.4		)	(15.4		)
Non-cash utilization	(13.6		)	—			—			(13.6		)
Accrual balance at December 31, 2013	$	—		$	15.1		$	—		$	15.1
Charged to expense	27.3			5.1			27.3			59.7
Cash payments	—			(17.5		)	(27.3		)	(44.8		)
Non-cash utilization	(27.3		)	—			—			(27.3		)
Accrual balance at December 31, 2014	$	—		$	2.7		$	—		$	2.7

In June 2014, PolyOne determined it would close its Diadema and Joinville, Brazil facilities that were acquired in 2011 with the acquisition of Uniplen Industria de Polimeros Ltda. These actions are expected to accelerate our specialty strategy in Brazil, streamline operations and improve our financial performance in the region. The table below summarizes restructuring activity related to Brazil since the date of closure. We do not expect the remaining charges related to these actions to have a material impact to our financial statements going forward.



(In millions)	Asset Charges			Employee Separation			Other Ongoing Costs			Total
Accrual balance at December 31, 2013	$	—		$	—		$	—		$	—
Charged to expense	10.7			2.9			3.4			17.0
Cash payments	—			(1.8		)	(3.4		)	(5.2		)
Non-cash utilization	(10.7		)	—			—			(10.7		)
Accrual balance at December 31, 2014	$	—		$	1.1		$	—		$	1.1

In addition to the Spartech and Brazil actions noted above, during 2014, we recognized $17.4 million of employee separation and restructuring costs primarily in Europe related to the closure of our Bendorf, Germany manufacturing plant along with other reductions in force across Europe. These costs principally related to severance, which are recognized within selling and administrative expense. We do not expect the remaining charges related to these actions to have a material impact to our financial statements going forward.

In 2014, we recognized total employee separation and restructuring charges of $94.1 million, which included $54.0 million recognized within Cost of goods sold and $40.1 million recognized in Selling and administrative expenses. In 2013, we recognized total employee separation and restructuring charges of $52.0 million, which included $16.1 million recognized within Cost of goods sold and $35.9 million recognized in Selling and administrative expenses.