Restructuring And Cost Reduction Programs

6 Months Ended

Jun. 30, 2015

Restructuring And Cost Reduction Programs [Abstract]

Restructuring And Cost Reduction Programs

13.    Restructuring and Cost Reduction Programs

In 2013, we initiated a Global Cost Reduction Program that was designed to address 3 key areas of the company - (1) business realignment, (2) operational efficiency and (3) corporate and back office functions.  Business realignment was targeted at right-sizing our commercial management organizations globally.  The operational efficiency component of the program was designed to improve the efficiency of our plant operations and supply chain.  The corporate and back office initiative is principally comprised of work that we are doing with our strategic partners in the areas of finance and accounting and information technology outsourcing, and procurement. The cumulative charges incurred to date associated with these programs are $41.6 million. Total costs related to the program expected to be incurred are approximately $41.6 million. Total restructuring charges were $1.1 million and $1.5 million for the three and six months ended June 30, 2015, respectively, and $2.0 million and $6.3 million for the three and six months ended June 30, 2014, respectively.

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

	Employee		Other		Asset
	Severance		Costs		Impairment		Total
	(Dollars in thousands)
Balances at December 31, 2014	$	519	$	937	$	—	$	1,456
Restructuring charges		1,290		214		—		1,504
Cash payments		(912)		(745)		—		(1,657)
Non-cash items		(483)		(31)		—		(514)
Balances at June 30, 2015	$	414	$	375	$	—	$	789

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.