Restructuring and Exit-Related Charges

12 Months Ended

Dec. 31, 2016

Restructuring And Related Activities [Abstract]

NOTE 4—RESTRUCTURING AND EXIT-RELATED CHARGES

We implemented a number of restructuring initiatives designed to reduce operating expenses and to achieve further integration and synergistic cost efficiencies in its operating platform in 2016. On management’s recommendations in the third and fourth quarters of 2016, the Board authorized the sale of Cosmedicine and the move of a majority of the corporate functions in Sherman Oaks, California to Beachwood, Ohio. The sale of Cosmedicine does not represent a strategic shift in the operations of the Company and, therefore, the assets, liabilities and results of its operations, including accrued restructuring and exit-related charges, are included in continuing operations. As of December 31, 2016, Cosmedicine’s identifiable intangible assets, totaling $0.1 million, were impaired, and inventories were written down to estimated net realizable value of $0.1 million, which management expects will be sold in 2017.

Additionally, in the first quarter of 2016, Real Alloy implemented a number of operating efficiency initiatives, right-sizing the operations in two plants. In connection with the sale of Cosmedicine, the move of the corporate function to Beachwood, and the operating efficiencies at Real Alloy, we incurred employee post-termination benefits and asset impairments, classified in other operating expenses, net in the consolidated statements of operations, as presented below in the year ended December 31, 2016:


(In millions)
Employee terminations:
Real Industry	$	0.3
Real Alloy		1.0
Cosmedicine		0.1
Total employee terminations		1.4
Asset impairments:
Inventories (Cosmedicine)		0.7
Identifiable intangible assets (Cosmedicine)		0.1
Total asset impairments		0.8
Total restructuring and exit-related charges	$	2.2

There were no restructuring or exit-related charges recognized in the years ended December 31, 2015 and 2014.