1. Restructuring

During the third quarter of 2012, the Company adopted a worldwide strategy to reduce costs and realign the organization structure in response to the global economic slowdown, rising raw material and maintenance costs, and delays in implementation of environmental regulations, which have created a challenging business environment for the Company. As a part of this strategy, the Company permanently closed, and later sold, its Datong, China manufacturing facility, temporarily idled a reactivation facility in Blue Lake, California, and reduced headcount. The Company has also consolidated operations at certain locations and will evaluate non-core businesses for potential divestiture.

For the three and nine months ended September 30, 2013, the Company recorded $(87) thousand and $0.4 million, respectively, of restructuring (income) charges which were all within the Activated Carbon and Service segment. The Company also recorded a pre-tax gain of $0.6 million for the sale of its activated carbon manufacturing facility in Datong, China for the period ended March 31, 2013 which was in the Activated Carbon and Service segment. The gain on sale was comprised of the release of foreign currency translation adjustments of $1.0 million which was partially offset by a $0.4 million charge for the write-off of goodwill. For three and nine months ended September 30, 2012, the Company recorded $8.0 million of restructuring charges which were all within the Activated Carbon and Service segment. These restructuring charges included impairment charges of $3.6 million for the permanent closure or sale of its activated carbon manufacturing facility in Datong, China and $0.4 million for the closure of a warehouse in Belgium. The Company also recorded termination benefits, including early retirement obligations, as a result of the worldwide reduction of headcount of $3.8 million.

The remaining restructuring cash outlays are expected to be made in 2013.

The following table summarizes the activity in the restructuring reserve for the nine month period ended September 30, 2013:

(Thousands, except number of employees)	Employee Termination Benefits			Gain on Sale			Other			Total Restructuring Activity			Employees
Accrual at December 31, 2012	$	3,226		$	—		$	—		$	3,226		67
Restructuring charges (income)	357			(578		)	92			(129		)	4
Payments	(3,032		)	—			(92		)	(3,124		)	(67	)
Non-cash charges	—			578			—			578			—
Accrual at September 30, 2013	$	551		$	—		$	—		$	551		4