Restructuring and Other Items, net

12 Months Ended

Dec. 31, 2019

Restructuring and Other Items, net [Abstract]

Note 5. Restructuring and Other Items, net

During the second quarter of 2019, the Company initiated a restructuring and cost savings program to better align our costs and organizational structure with the current market environment. The Company recorded a $7.5 million non-cash write-down of assets charge related to facilities and equipment no longer operating and deemed to be held for sale or discontinued and $5.7 million in other restructuring costs. The Company expects to realize annualized savings from this restructuring program of approximately $12 million by the first half of 2020.

In 2018, the Company recorded impairment of assets charges relating to the shut-down of one of its Paper PCC facilities in the U.S. in the first quarter of 2019 and additional restructuring costs relating to our exited Energy Services businesses.

In 2017, the Company recognized $15 million in restructuring and non-cash impairment charges from the closure of paper mills in North America, as well as the alignment of corporate and Paper PCC staffing levels into higher growth regions.

The following table outlines the amount of restructuring charges recorded within the Consolidated Statements of Income and the segments they relate to:

Restructuring and Other Items, net	Year Ended December 31,
(millions of dollars)	2019		2018		2017
Asset Write-Downs
Performance Materials	$	4.2	$	—	$	—
Specialty Minerals		1.6		0.7		5.3
Energy Services		1.7		—		—
Total asset write-down charges	$	7.5	$	0.7	$	5.3

Severance and other employee costs
Performance Materials	$	2.8	$	—	$	—
Specialty Minerals		0.9		—		5.0
Refractories		0.8		—		—
Energy Services		0.1		1.8		1.7
Corporate		1.1		—		4.1
Total severance and other employee costs	$	5.7	$	1.8	$	10.8

Other
Energy Services	$	—	$	—	$	(1.1	)

Total restructuring and other items, net	$	13.2	$	2.5	$	15.0

At December 31, 2019 and 2018, the Company had $5.0 million and $2.5 million, respectively, included within other current liabilities within our Consolidated Balance Sheets for cash expenditures needed to satisfy remaining obligations under these reorganization initiatives. The Company expects to pay these amounts by the end of 2020.

The following table is a reconciliation of our restructuring liability balance:

(millions of dollars)
Restructuring liability, December 31, 2018	$	2.5
Additional provisions		5.7
Cash payments		(3.2	)
Other		—
Restructuring liability, December 31, 2019	$	5.0