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Government Grants
6 Months Ended
Jun. 30, 2017
Government Grants  
Government Grants

14.  Government Grants

 

In 2014, the Company received an incentive of 3.86 million Renminbi (RMB) or approximately $0.6 million from the Suzhou Wuzhong Economic Development Zone, 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.  In 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 three and six month periods ended June 30, 2017 and 2016, the Company did not recognize income for these incentives as all required documentation had not yet been completed.  As of both June 30, 2017 and December 31, 2016, the Company has a $0.8 million liability recorded as a component of accrued pension and other liabilities within its condensed consolidated balance sheets for the unearned portion of the incentives.

 

In September 2016, the Company entered into an agreement with a U.S. government agency to manufacture activated carbon products used in military personal protection equipment and collective protection equipment at another of the Company’s manufacturing plants to assure uninterrupted supply of the critical military materials.  As part of this agreement, the Company will be reimbursed for approved capital improvements made in conjunction with the federal award up to $15.4 million.  As of June 30, 2017, there had been minimal activity associated with the award, and the Company has not yet received any funds.