RESTRUCTURING

On October 6, 2014, the Company’s board of directors approved the 2014 Restructuring Plan to improve gross margins and profitability in the long term by exiting low-return businesses and reducing the size and cost of the Company’s overhead structure.

The 2014 Restructuring Plan included exiting certain unprofitable international locations for the Company’s Insituform business, consolidating the Company’s worldwide Fyfe business with the Company’s global Insituform business and eliminating certain idle facilities in the Company’s Bayou Louisiana coatings operations.

For the year ended December 31, 2014, significant progress has been made against all of the aforementioned objectives. Headcount reductions via termination totaled 31 in 2014. The Company expects approximately 80 additional headcount reductions via termination in 2015.

In December 2014, and as part of the restructuring, the Company sold its wholly-owned subsidiary, Ka-te, to Marco Daetwyler Gruppe AG for the sale price of CHF 1.1 million (approximately $1.1 million). In connection with the sale, the Company entered in to a five-year exclusive tube supply agreement whereby Ka-te will source all of its liners from Insituform Linings Ltd. Ka-te will also be entitled to continue to use its trade name based on a trade mark license granted for the same five-year time period.

During 2014, the Company recorded pre-tax expense of $49.5 million for charges related to the 2014 Restructuring Plan as follows (in thousands):



	Infrastructure Solutions		Corrosion Protection		Total
Severance and benefit related costs	$	687	$	—	$	687
Bad debt expense	11,947		—		11,947
Inventory obsolescence	2,746		—		2,746
Fixed asset impairment	533		11,338		11,871
Definite-lived intangible asset impairment	—		10,896		10,896
Other asset write-offs	5,013		—		5,013
Other restructuring costs	6,358		—		6,358
Total pre-tax restructuring charges	$	27,284	$	22,234	$	49,518

Restructuring costs of $0.7 million are reported on a separate line in the Consolidated Statements of Operations in accordance with FASB ASC 420, Exit or Disposal Cost Obligations, and relate to severance and other termination benefit costs. The following tables summarize all restructuring charges recognized in 2014, by reporting segment, as presented in their affected line in the Consolidated Statements of Operations:



	Fixed Asset Impairment		Definite-lived Intangible Asset Impairment		Other Non-Cash Restructuring Charges		Cash Restructuring Charges		Total
Infrastructure Solutions:
Cost of revenues	$	498	$	—	$	2,774	$	1,076	$	4,348
Operating expenses	35		—		17,544		2,976		20,555
Restructuring charges	—		—		—		687		687
Other expense	—		—		790		904		1,694
	533		—		21,108		5,643		27,284
Corrosion Protection:
Cost of revenues	11,338		—		—		—		11,338
Definite-lived intangible asset impairment	—		10,896		—		—		10,896
	11,338		10,896		—		—		22,234

Total pre-tax restructuring charges	$	11,871	$	10,896	$	21,108	$	5,643	$	49,518

Total pre-tax restructuring charges in 2014 were $49.5 million ($36.2 million post-tax) and consist of non-cash charges totaling $43.9 million and cash charges totaling $5.6 million. The non-cash charges of $43.9 million included $22.2 million related to the impairment of certain long-lived assets and definite-lived intangible assets for Bayou’s coating operations in Louisiana, which is reported in the Corrosion Protection reportable segment, and $21.7 million related to inventory obsolescence, impairment definite-lived intangible assets, allowances for accounts receivable, write-off of certain other current assets and long-lived assets as well as a legal accrual related to disputed work performed by our European and Asia-Pacific operations, which are reported in the Infrastructure Solutions reportable segment. Cash charges totaling $5.6 million included employee severance, retention, extension of benefits, employment assistance programs and other costs associated with the restructuring for the European and Asia-Pacific operations.

Estimated remaining costs to be incurred in 2015, including totals and category ranges, for the 2014 Restructuring Plan are as follows:


•	Approximately $1 million to $2 million related to severance and benefit costs,


•	Approximately $4 million to $6 million related to other restructuring costs.

The following table summarizes the 2014 Restructuring Plan activity during 2014 (in thousands):



			Utilized
	Charge to Income		Cash		Non-Cash		Reserves at December 31, 2014
Severance and benefit related costs	$	687	$	221	$	—	$	466
Bad debt expense	11,947		—		483		11,464
Inventory obsolescence	2,746		—		2,746		—
Fixed asset impairment	11,871		—		11,871		—
Definite-lived intangible asset impairment	10,896		—		10,896		—
Other asset write-offs	5,013		—		5,013		—
Other restructuring costs	6,358		3,862		—		2,496
Total pre-tax restructuring charges	$	49,518	$	4,083	$	31,009	$	14,426