Special Items (Tables)

12 Months Ended

Dec. 31, 2012

Restructuring and Other Charges Reported in Consolidated Statements of Income

Restructuring and other charges, net reported in the consolidated statements of income for the years ended December 31, 2012, 2011 and 2010 consist of the following (in thousands):

	Year Ended December 31,
	2012			2011		2010
Exit of phosphorus flame retardants business(a)	$	100,777		$	—	$	—
Defined benefit pension plan curtailment gain, net(b)		(4,507	)		—		—
Employer contribution to defined contribution plan(b)		10,081			—		—
Other(c)		5,334			—		6,958
Total Restructuring and other charges, net	$	111,685		$	—	$	6,958

(a) In the second quarter of 2012 we recorded net charges amounting to $94.7 million ($73.6 million after income taxes), and in the fourth quarter we recorded net charges amounting to $6.1 million ($2.5 million after income taxes), in connection with our exit of the phosphorus flame retardants business, whose products were sourced mainly at our Avonmouth, United Kingdom and Nanjing, China manufacturing sites. The charges are comprised mainly of non-cash items consisting of net asset write-offs of approximately $57 million and write-offs of foreign currency translation adjustments of approximately $12 million, as well as accruals for future cash costs associated with related severance programs of approximately $22 million, estimated site remediation costs of approximately $9 million, other estimated exit costs of approximately $3 million, partly offset by a gain of approximately $2 million related to the sale of our Nanjing, China manufacturing site. Payments under this restructuring plan are expected to occur through 2014.

(b) In the fourth quarter of 2012 we recorded a net curtailment gain of $4.5 million ($2.9 million after income taxes) and a one-time employer contribution to the Company’s defined contribution plan of $10.1 million ($6.4 million after income taxes), both in connection with various amendments to certain of our U.S. pension and defined contribution plans that were approved by our Board of Directors in the fourth quarter of 2012. See Note 17, “Pension Plans and Other Postretirement Benefits.”

(c) In the fourth quarter of 2012 we recorded charges amounting to $5.3 million ($4.3 million after income taxes) related to changes in product sourcing and other items. The year ended December 31, 2010 included charges amounting to $7.0 million ($4.6 million after income taxes) that related principally to reductions in force at our Bergheim, Germany site.

Activity in Recorded Workforce Reduction Liabilities

We had the following activity in our recorded workforce reduction liabilities for the years ended December 31, 2012, 2011 and 2010 (in thousands):

	Year Ended December 31,
	2012			2011			2010
Balance, beginning of year	$	4,780		$	7,074		$	4,880
Workforce reduction charges(a)		21,640			1,859			6,605
Payments		(10,929	)		(4,292	)		(3,568	)
Amount reversed to income		(45	)		19			(370	)
Foreign currency translation		452			120			(473	)
Balance, end of year		15,898			4,780			7,074
Less amounts reported in Accrued expenses		14,428			2,843			3,845
Amounts reported in Other noncurrent liabilities	$	1,470		$	1,937		$	3,229

(a) The year ended December 31, 2012 includes charges amounting to $21.6 million relating to reduction in force liabilities associated with our exit of the phosphorus flame retardants business noted above.

The year ended December 31, 2011 includes charges of $1.9 million related to restructuring programs at various manufacturing locations which are reflected in Cost of goods sold. Payments under these programs have been completed.

The year ended December 31, 2010 includes a charge of $6.6 million related to reductions in force at our Bergheim, Germany site. Payments under this restructuring plan are expected to occur through 2014.