Restructuring (Tables)

6 Months Ended

Jun. 30, 2020


	Three Months Ended				Six Months Ended				Cumulative
	June 30,				June 30,				Life-to-date
	2020		2019		2020		2019		Charges		Segment
Corporate Restructuring Program
Accelerated depreciation	$	1.2	$	—	$	2.5	$	—	$	2.9
Employee termination benefits		4.1		—		4.4		—		21.4
Contract terminations		1.2		—		2.4		—		2.8
Corporate Program Subtotal	$	6.5	$	—	$	9.3	$	—	$	27.1	N/A⁽¹⁾
Terneuzen Compounding Restructuring
Asset impairment/accelerated depreciation	$	—	$	—	$	—	$	—	$	3.1
Employee termination benefits		—		(0.4)		—		(0.4)		0.7
Contract terminations		—		—		—		—		0.3
Decommissioning and other		0.1		—		0.2		0.2		2.2
Terneuzen Subtotal	$	0.1	$	(0.4)	$	0.2	$	(0.2)	$	6.3	Performance Plastics⁽²⁾
Livorno Plant Restructuring
Asset impairment/accelerated depreciation	$	—	$	—	$	—	$	—	$	14.7
Employee termination benefits		—		—		—		—		5.4
Contract terminations		—		—		—		—		0.3
Decommissioning and other		—		0.1		0.2		0.3		4.4
Livorno Subtotal	$	—	$	0.1	$	0.2	$	0.3	$	24.8	Latex Binders⁽³⁾
Other Restructurings		0.9		—		0.9		—			Various
Total Restructuring Charges	$	7.5	$	(0.3)	$	10.6	$	0.1

(1)

In November 2019, the Company announced a corporate restructuring program associated with the Company’s shift to a global functional structure and business excellence initiatives to drive greater focus on business process optimization and efficiency, which continued through the six months ended June 30, 2020. In connection with this restructuring plan, the Company incurred employee termination benefit charges of $4.1

million, inclusive of a share-based compensation benefit of $1.4 million, contract termination charges of $1.2 million, and accelerated depreciation charges of $1.2 million during the three months ended June 30, 2020. Employee termination benefit charges of $4.4 million, contract termination charges of $2.4 million, and accelerated depreciation charges of $2.5 million were incurred during the six months ended June 30, 2020. The Company expects to incur incremental employee termination benefit charges of less than $1.0 million, inclusive of pension charges, through the end of 2020, and the majority of these total benefits are expected to be paid by the end of 2020. As this was identified as a corporate-related activity, the charges related to this restructuring program were not allocated to a specific segment, but rather included within corporate unallocated.

(2)

In 2017, the Company announced plans to upgrade its production capability for compounded resins with the construction of a new state-of-the art compounding facility to replace its existing compounding facility in Terneuzen, The Netherlands. As of June 30, 2020, the new facility is complete, along with all substantive transition and quality assurance activities. Production at the prior facility ceased and decommissioning activities began in 2019, and are expected to continue through the first half of 2021. The Company estimates it will incur incremental decommissioning and other charges of less than $1.0 million through 2021, the majority of which are expected to be paid during the remainder of 2020.

(3)

In 2016, the Company ceased manufacturing activities at its latex binders manufacturing facility in Livorno, Italy and began decommissioning activities. In 2018, the Company entered into an agreement to sell the land where the former facility is located. This land sale closed in January 2020, for a total purchase price of $12.5 million. A prepayment of $1.3 million of this purchase price was received in 2018, and was recorded within “Accrued expenses and other current liabilities” on the condensed consolidated balance sheets as of December 31, 2019. The remaining purchase price was received in January 2020 when the transaction closed. The Company recorded a net gain on sale of $0.6 million during the six months ended June 30, 2020, which was recorded within “Selling, general and administrative expenses” in the condensed consolidated statements of operations.

Rollforward of Liability Balances


	Balance at						Balance at
	December 31, 2019		Expenses		Deductions⁽¹⁾		June 30, 2020
Employee termination benefits	$	17.2	$	6.7	$	(7.0)	$	16.9
Contract terminations		0.7		—		(0.5)		0.2
Decommissioning and other		—		0.4		(0.4)		—
Total	$	17.9	$	7.1	$	(7.9)	$	17.1

(1)

Primarily includes payments made against the existing accrual, as well as immaterial impacts of foreign currency remeasurement.