4. RESTRUCTURING OF OPERATIONS

In accordance with our accounting policy, restructuring costs are included in our corporate and unallocated operating results for segment reporting purposes, which is consistent with management’s view of its businesses. Aggregate pre-tax restructuring charges (credits) included in the consolidated statements of income were recorded by line item as follows:



	2013			2012		2011
Manufacturing cost of sales	$	(0.2	)	$	3.5	$	0.9
Selling and technical services	0.2			3.1		—
Research and process development	—			0.5		—
Administrative and general	4.1			14.1		(0.1		)
Asset impairment charge	2.8			—		—
Total	$	6.9		$	21.2	$	0.8

Details of our 2013 restructuring initiatives are as follows:

In the third quarter of 2013, we launched cost reduction initiatives in our Industrial Materials segment to address the current market conditions and better position ourselves for profitable growth. The plan includes headcount reductions of approximately 55 people, through modification of shift patterns within various operations, centralization of logistics and planning activities, and closure of a small site in Beelitz, Germany. The plan resulted in a pre-tax restructuring charge of approximately $4.5 related mainly to severance costs and the closure of a manufacturing facility. The initiative is expected to be completed by 2015.

In the second quarter of 2013, we launched initiatives in our Aerospace Materials segment to move all production operations from the Costa Mesa, Adelanto, and Huntington Beach, California sites into the Winona, Minnesota, Tulsa, Oklahoma, and Anaheim, California locations. Approximately 120 employees will be impacted by this move. These plans resulted in a restructuring charge of $1.6, primarily for severance, retention costs and accelerated depreciation. The initiatives are expected to be completed in waves by the first quarter of 2015 and paid for by mid-2015.

The remaining reserve relating to the 2013 restructuring initiatives at December 31, 2013 is $1.8.

Details of our 2012 restructuring initiatives are as follows:

In the third quarter of 2012, we approved plans to realign the supporting structure of our Aerospace Materials and Industrial Materials segments to take advantage of synergies from the acquisition of Umeco. These plans resulted in a restructuring charge of $6.6 related to the severance of 28 positions. The initiatives were substantially completed in 2013 and are expected to be paid by the end of 2015.

In the second quarter of 2012, we launched initiatives in our corporate functions across sales, marketing, manufacturing, supply chain, research and development, and administrative functions to mitigate continuing costs following the anticipated sale of Coating Resins. These initiatives resulted in charges related to severance and employee benefits of $14.7 associated with the elimination of 171 positions. These initiatives are expected to be substantially completed and paid by the end of by 2014.

During 2013, we recorded an additional charge of $0.9 to these initiatives. The remaining reserve relating to the 2012 restructuring initiatives at December 31, 2013 is $4.8.

Details of our 2010 restructuring initiatives are as follows:

In May 2010, we approved plans to exit the production of certain phosphorus derivative products at our Mt. Pleasant, Tennessee facility. These plans resulted in a restructuring charge of $5.5 in 2010, of which $0.4 related to the severance of 10 positions, $1.7 related to asset write-offs, and $3.4 related to decommissioning activities, all of which related to our In Process Separation segment. During 2011, we recorded an additional restructuring charge of $1.1 related to these plans. During 2012 we recorded a net favorable adjustment of $0.2. All costs have been paid in full as of June 30, 2012.



Restructuring Initiatives:	2009			2010			2012			2013			Total
Balance at December 31, 2010	$	1.5		$	1.5		$	—		$	—		$	3.0
2011 charges (credits)	(0.3		)	1.1			—			—			0.8
Non-cash items	—			—			—			—			—
Cash payments	(1.0		)	(2.3		)	—			—			(3.3		)
Currency translation adjustments	—			—			—			—			—
Balance at December 31, 2011	$	0.2		$	0.3		$	—		$	—		$	0.5
2012 charges (credits)	0.1			(0.2		)	21.3			—			21.2
Non-cash items	—			—			(0.1		)	—			(0.1		)
Cash payments	(0.2		)	(0.1		)	(8.3		)	—			(8.6		)
Currency translation adjustments	—			—			0.3			—			0.3
Balance at December 31, 2012	$	0.1		$	—		$	13.2		$	—		$	13.3
2013 charges (credits)	(0.1		)	—			0.9			6.1			6.9
Non-cash items⁽¹⁾	—			—			—			(3.2		)	(3.2		)
Cash payments	—			—			(9.2		)	(1.2		)	(10.4		)
Currency translation adjustments	—			—			(0.1		)	0.1			—
Balance at December 31, 2013	$	—		$	—		$	4.8		$	1.8		$	6.6


(1)	Includes a $2.8 charge for the write-off of plant assets at our manufacturing facility in Beelitz, Germany and accelerated depreciation of plant assets at our California sites.