Restructuring Charges:

12 Months Ended

Dec. 31, 2013

2. Restructuring Charges

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 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 also consolidated operations at certain locations and evaluated non-core businesses for potential divestiture.

The Company recorded $(0.1) million and $10.2 million of restructuring (income) charges as of December 31, 2013 and 2012, respectively, which were all within the Activated Carbon and Service segment. In 2013, the Company recorded a pre-tax gain of $0.6 million for the sale of its activated carbon manufacturing facility in Datong, China. 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. The 2012 restructuring charges included impairment charges of $3.6 million for the permanent closure of the Datong facility as well as $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 $4.4 million for the year ended December 31, 2012. In addition, the Company incurred a $1.4 million pension settlement charge as a result of lump sum pension distributions for those participants in the early retirement program for the year ended December 31, 2012.

The following table summarizes the restructuring plan and the activity in the restructuring reserve for the years ended December 31, 2013 and 2012:

(Thousands, except no. of employees)	Employee Termination Benefits			Asset Write-offs			Gain on Sale			Other			Total Restructuring Activity			Employees Impacted
Restructuring charges	$	5,777		$	4,000		$	—		$	434		$	10,211		120
Payments	(1,182		)	—			—			(434		)	(1,616		)	(53	)
Pension settlement	(1,369		)	—			—			—			(1,369		)	—
Non-cash charges	—			(4,000		)	—			—			(4,000		)	—
Accrual at December 31, 2012	3,226			—			—			—			3,226			67
Restructuring charges	357			—			(578		)	92			(129		)	4
Payments	(3,048		)	—			—			(92		)	(3,140		)	(67	)
Non-cash charges	—			—			578			—			578			—
Accrual at December 31, 2013	$	535		$	—		$	—		$	—		$	535		4

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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