Note 3.

Restructuring and Other Items, net

In 2014, the Company initiated a restructuring program and undertook actions to realign its business operations, improve efficiencies, profitability, and return on invested capital. This restructuring impacted all business segments of the Company and provided annualized savings of approximately $29 million (unaudited). This restructuring resulted in the following charges relating to asset impairment and reduction in workforce:

Asset impairment and other restructuring charges:

The asset impairment charges in 2014 related to the consolidation of certain manufacturing operations and administrative offices. The Company closed three Construction Technologies’ operations – two in Europe and one in Asia – and consolidated those operations into others in these regions. The Company also closed and consolidated the operations of one of its Performance Materials blending facilities in the U.S. The fair value of the associated assets was estimated using a discounted cash flow approach (a Level 3 fair value input).

In 2015, the Company recognized impairment charges for certain underutilized coiled tubing equipment within the Energy Services segment which have been abandoned by the Company.

In 2016, the Company recognized additional restructuring charges for lease termination costs, inventory write-offs and impairment of assets relating to its exit from the Nitrogen and Pipeline product lines and restructuring of other onshore services within the Energy Services segment as a result of the significant reduction in oil prices and overcapacity in the onshore oil service market. The Company expects to realize further annualized savings from this restructuring program of $11.5 million (unaudited). In addition, the Company recognized a $2.9 million gain on previously impaired assets in the Refractories Segment.

Work force reduction:

In 2014, the Company announced a 10% permanent reduction of its workforce including elimination of duplicate corporate functions, deployment of our shared service model, and consolidation and alignment of various corporate functions and regional locations across the Company.

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, 2016
	2016			2015		2014
	(millions of dollars)
Impairment of assets
Performance Materials	$	-		$	-	$	0.4
Construction Technologies		-			-		11.7
Energy Services		18.5			33.0		11.6
Corporate		-			1.2		-
Total impairment of assets charges	$	18.5		$	34.2	$	23.7

Severance and other employee costs
Specialty Minerals	$	-		$	-	$	3.0
Refractories		-			2.0		0.7
Performance Materials		-			-		5.6
Construction Technologies		-			-		5.8
Energy Services		12.7			9.0		3.7
Total severance and other employee costs	$	12.7		$	11.0	$	18.8

Other
Refractories	$	(2.9	)	$	-	$	-
Performance Materials		-			-		0.7

Total restructuring and other items, net	$	28.3		$	45.2	$	43.2

At December 31, 2016 and 2015, the Company had $3.6 million and $7.9 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 2017.

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

	(millions of dollars)
Restructuring liability, December 31, 2015	$	7.9
Additional provisions		12.7
Cash payments		(17.0	)
Restructuring liability, December 31, 2016	$	3.6