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Government Grants
12 Months Ended
Dec. 31, 2015
Government Grants  
Government Grants

 

19. Government Grants

 

On December 7, 2007, the Company was awarded two separate grants with the Walloon region (the Region) in Belgium, where its Feluy facility is located.  The awards were based on the Company’s contributions to the strategic development of the Region through its investment in the expansion of the Feluy facility and creation of employment opportunities.  The grants totaled approximately 2.6 million Euros or $3.4 million.  The Company received 0.9 million Euros or $1.2 million for the year ended December 31, 2014 and 1.2 million Euros or $1.5 million for the year ended December 31, 2013.  As of December 31, 2014, the Company has received the full amount of these grants.  The Company has recognized the grants as a deduction from the carrying amount of the property, plant and equipment on its consolidated balance sheets in the respective periods received.

 

On June 20, 2011, the Company was also awarded a grant of up to $1.0 million from the Ohio Department of Development’s Ohio Third Frontier Advanced Energy Program (OTF AEP) to support its activated carbon commercialization efforts.  The objective of the project was to commercialize cost-effective activated carbon materials for use in energy storage applications and markets around the world.  The grant was being utilized to upgrade capital equipment at the Company’s Columbus, Ohio facility which enables the manufacturing of highly demanded cost-effective activated carbon materials for use in energy storage markets.  The Company did not receive any amounts under the grant in either 2015 or 2014 and does not anticipate any future amounts to be received.  The Company received $0.4 million and $0.3 million of the grant in each of the years ended December 31, 2013 and 2012, respectively.  The Company recognized $0.2 million and $0.2 million of the grant received for the years ended December 31, 2013 and 2012, respectively, as a deduction from the carrying amount of the property, plant and equipment on its consolidated balance sheets.  The Company recognized the remaining $0.2 million and $0.1 million for the years ended December 31, 2013 and 2012, respectively, as a reduction to research and development expenses on its consolidated statements of comprehensive income.

 

On December 19, 2014, the Company received an incentive of 3.86 million RMB or approximately $0.6 million from the Suzhou Wuzhong Economics Development Zone (WEDZ), where the Company’s Suzhou, China facility is located.  This incentive was provided based on the Company’s commitment to the construction of carbon reactivation lines in two phases.  Under phase one, the construction of two reactivation lines and under phase two, the construction of another two reactivation lines on the same site.  For the year ended December 31, 2014, the Company has recognized 1.93 million RMB or approximately $0.3 million (which represents 50% of the total awarded incentive) less related expenses as a reduction to other expense - net on its consolidated statements of comprehensive income as phase one of the agreed upon commitment has been completed and all required documentation has been submitted to WEDZ.  As of December 31, 2015 and 2014, the Company has a $0.3 million liability recorded as a component of accrued pension and other liabilities within its consolidated balance sheet for the remainder of the incentive that relates to phase two of the commitment as it has not yet been constructed.