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RESTRUCTURING AND OTHER SEVERANCE COSTS:
3 Months Ended
Mar. 31, 2013
RESTRUCTURING AND OTHER SEVERANCE COSTS:  
RESTRUCTURING AND OTHER SEVERANCE COSTS:

13.  RESTRUCTURING AND OTHER SEVERANCE COSTS:

 

The Company records restructuring liabilities that represent charges incurred in connection with consolidations and cessations of certain of its operations, including operations from acquisitions, as well as headcount reduction programs. These charges consist primarily of severance and facility/entity closure costs. Severance charges are based on various factors including the employee’s length of service, contract provisions, salary levels and local governmental legislation. At the time a related charge is recorded, the Company calculates its best estimate based upon detailed analysis. Although significant changes are not expected, actual costs may differ from these estimates.

 

The following table provides the restructuring and other severance costs for the three months ended March 31, 2013 and 2012:

 

 

 

Three months ended

 

 

 

March 31,

 

($ in millions)

 

2013

 

2012

 

Severance/Relocation

 

$

1.2

 

$

0.6

 

Facility/entity closure and other

 

4.5

 

1.3

 

Asset write-downs

 

—

 

11.3

 

Restructuring charge

 

5.7

 

13.2

 

Other severance costs

 

1.4

 

1.0

 

Total

 

$

7.1

 

$

14.2

 

 

For the three months ended March 31, 2013, the restructuring charges primarily relate to the closure of a lithium manufacturing facility in the U.S. and organizational changes in the Surface Treatment and Performance Additives segments.

 

All restructuring actions still in progress as of March 31, 2013 are expected to be substantially complete within the next twelve months, except for severance and facility closure costs in connection with the future consolidation of the North American Surface Treatment and Color Pigments and Services businesses. However, payouts of certain liabilities resulting from these actions will take place over several years. Selected information for outstanding liabilities from recent restructuring actions is as follows:

 

 

 

 

 

Facility/Entity

 

 

 

 

 

Severance/

 

Closure

 

 

 

($ in millions)

 

Relocation

 

and Other

 

Total

 

Liability balance, December 31, 2012

 

$

9.8

 

$

1.9

 

$

11.7

 

Restructuring charge in 2013

 

1.2

 

4.5

 

5.7

 

Utilized

 

(2.9

)

(1.2

)

(4.1

)

Foreign exchange and other

 

(0.2

)

(0.1

)

(0.3

)

Liability balance, March 31, 2013

 

$

7.9

 

$

5.1

 

$

13.0

 

 

 

 

 

 

 

 

 

 

The total charges for open restructuring actions and the future costs for those actions are summarized below:

 

 

 

 

 

Surface

 

Performance

 

 

 

($ in millions)

 

Lithium

 

Treatment

 

Additives

 

Total

 

Severance/Relocation

 

 

 

 

 

 

 

 

 

Total charges

 

$

3.8

 

$

4.7

 

$

3.7

 

$

12.2

 

Incurred to date

 

(3.6

)

(4.4

)

(3.1

)

(11.1

)

Expected future costs

 

$

0.2

 

$

0.3

 

$

0.6

 

$

1.1

 

Facility/Entity Closure

 

 

 

 

 

 

 

 

 

Total charges (a)

 

$

31.6

 

$

7.4

 

$

5.9

 

$

44.9

 

Incurred to date (a)

 

(30.1

)

(5.7

)

(1.7

)

(37.5

)

Expected future costs

 

$

1.5

 

$

1.7

 

$

4.2

 

$

7.4

 

 

 

(a)               Includes $10.3 million related to write-off of a trade name in the Lithium segment in connection with the reorganization of the Specialty Chemicals segment into two reportable segments and a write-down of $12.0 million of machinery and equipment related to the closure of a Lithium manufacturing facility in the U.S.