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Government Grants
12 Months Ended
Dec. 31, 2016
Government Grants  
Government Grants

19. Government Grants

 

In 2007, the Company was awarded grants in Belgium related to its investment in the expansion of the Feluy facility and creation of employment opportunities.  The Company received 0.9 million Euros or $1.2 million for the year ended December 31, 2014, which represented the final payment under the 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 period received.

 

On December 19, 2014, the Company received an incentive of 3.86 million RMB or approximately $0.6 million from the Suzhou Wuzhong Economic 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 recognized 1.93 million RMB or approximately $0.3 million 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 had been completed and all required documentation had been submitted to WEDZ.  On May 17, 2016, the Company received an incentive of 3.86 million RMB or approximately $0.6 million from the JiangSu Provincial Bureau based on the same Company commitment.  For the year ended December 31, 2016, the Company did not recognize income for the second incentive as all required documentation has not yet been completed.  As of December 31, 2016 and 2015, the Company had a $0.8 million and $0.3 million liability recorded as a component of accrued pension and other liabilities within its consolidated balance sheets for the unearned portion of the incentives.

 

In September 2016, the Company entered into a technology investment agreement with a U.S. government agency to improve the production, infrastructure and manufacturing efficiencies related to the activated carbon capacity expansion project.  As part of this agreement, the Company will be reimbursed for approved capital improvements made in conjunction with the federal award.  As of December 31, 2016, there had been minimal activity associated with the award, and as such, the Company has not yet requested or received any funds.