Restructuring and Cost Reduction Programs

9 Months Ended

Sep. 30, 2013

Restructuring And Related Activities [Abstract]

Restructuring and Cost Reduction Programs

11. Restructuring and Cost Reduction Programs

In the first quarter of 2013, we developed and initiated various restructuring programs across the organization with the objectives of realigning the business and lowering our cost structure. Specifically, the programs relate to our European operations, certain corporate functions, improvement of operational efficiencies, and the exit of the solar pastes product line. As a result of the restructuring actions, the Company expects to incur charges of approximately $40 million, the majority of which will be for severance costs and require future cash expenditures. The programs are subject to required consultations with employee representatives at the affected sites and other local legal requirements. Charges associated with these programs were $3.8 million and $26.7 million for the three and the nine months ended September 30, 2013, respectively. The cumulative charges incurred to date associated with these programs are $37.0 million.

The activities and accruals related to our restructuring and cost reduction programs are summarized below:

	Employee Severance			Other Costs			Asset Impairment			Total
	(Dollars in thousands)
Balance at December 31, 2012	$	4,093		$	6,139					$	10,232
Restructuring charges		19,647			7,094			(3	)		26,738
Cash payments		(14,715	)		(7,671	)					(22,386	)
Non-cash items		92			(820	)		3			(725	)
Balance at September 30, 2013	$	9,117		$	4,742		$	—		$	13,859

We expect to make cash payments to settle the remaining liability for employee termination benefits and other costs over the next twelve months, except where legal or contractual restrictions prevent us from doing so.