Other (income) expense, net

Components of other (income) expense, net are as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
In millions	2016			2015			2016			2015
Foreign currency exchange (income) loss	$	(1.1	)	$	0.6		$	(4.8	)	$	1.5
Royalty and sundry (income) loss ⁽¹⁾	(0.8		)	—			(0.9		)	(1.7		)
Restructuring and other (income) charges, net ⁽²⁾	1.0			(0.4		)	5.6			(0.7		)
Other (income) expense, net	$	(0.9	)	$	0.2		$	(0.1	)	$	(0.9	)

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(1)	Primarily represents royalty income for technology licensing.


(2)	See below for more information regarding the Company's restructuring and other (income) charges, net.

Restructuring and other (income) charges, net

We continually perform strategic reviews and assess the return on the Company's operations which sometimes results in a plan to restructure the business. The cost and benefit of these strategic restructuring initiatives are recorded as restructuring and other (income) charges, net recorded within Other (income) expense, net on our Consolidated and Combined Statement of Operations. These costs are excluded from our operating segment results.

We record an accrual for severance and other non-recurring costs under the provisions of the relevant accounting guidance. Additionally, in some restructuring plans write-downs of long-lived assets may occur. Two types of assets are impacted: assets to be disposed of by sale and assets to be abandoned. Assets to be disposed of by sale are measured at the lower of carrying amount or estimated net proceeds from the sale. Assets to be abandoned with no remaining future service potential are written down to amounts expected to be recovered. The useful life of assets to be abandoned that have a remaining future service potential are adjusted and depreciation is recorded over the adjusted useful life. Below provides detail of the restructuring and other (income) charges, net incurred.



	Three Months Ended June 30,					Six Months Ended June 30,
In millions	2016		2015			2016		2015
Restructuring and other (income) charges, net
Gain on sale of assets and businesses	$	—	$	(0.4	)	$	—	$	(0.7	)
Severance and other employee-related costs ⁽¹⁾	—		—			4.5		—
Asset write-downs ⁽²⁾	0.3		—			0.4		—
Other (income) charges, net ⁽³⁾	0.7		—			0.7		—
Total restructuring and other (income) charges, net	$	1.0	$	(0.4	)	$	5.6	$	(0.7	)

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(1)	Represents severance and employee benefit charges. Income represents adjustments to previously recorded severance and employee benefits.


(2)	Primarily represents accelerated depreciation and impairment charges on long-lived assets, which were or are to be abandoned. To the extent incurred the acceleration effect of re-estimating settlement dates and revised cost estimates associated with asset retirement obligations due to facility shutdowns are also included within the asset write-downs.


(3)	Primarily represents costs associated with rental payments, contract terminations, and other miscellaneous exit costs. Other Income primarily represents favorable developments on previously recorded exit costs as recoveries associated with restructuring activities.

2016 activities

In 2016, the Company announced two restructuring events. The first event was the closure of the Performance Chemicals' derivatives operation in Duque de Caxias, Rio de Janeiro, Brazil. As a result of this closure, the Company recorded $0.7 million of additional miscellaneous exit costs during the three months ended June 30, 2016. Additionally during the six months ended June 30, 2016, the Company recorded a $0.1 million impairment charge on fixed assets and $1.8 million in severance and other employee-related costs.

The Company also announced a company-wide restructuring to better align our workforce in light of changing macroeconomic and market realities. The restructuring decision resulted in workforce reductions at several of our locations. As a result, during the three and six months ended June 30, 2016, the Company recorded severance and other employee-related charges of zero and $2.7 million, respectively ($1.9 million related to Performance Chemicals segment and $0.8 million related to Performance Materials segment). The Company also recorded a $0.3 million impairment charge on fixed assets in the three and six months ended June 30, 2016 (related to the Performance Chemicals segment).

2015 activities

Income related to an additional gain on the 2014 sales of the Company's Performance Materials' air purification business in the three and six months ended June 30, 2015 was $0.4 million and $0.7 million, respectively.

Roll forward of Restructuring Reserves

The following table shows a roll forward of restructuring reserves that will result in cash spending.



	Balance at		Change in	Cash				Balance at
In millions	12/31/2015 ⁽¹⁾		Reserve ⁽²⁾	Payments		Other ⁽³⁾		6/30/2016 ⁽¹⁾
Restructuring Reserves	$	—	5.2	(3.6	)	(0.1	)	$	1.5

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(1)	Included in "Accrued Expenses" on the Consolidated and Combined Balance Sheet.


(2)	Includes severance and other employee-related costs, exited leases, contract terminations and other miscellaneous exit costs. Any asset write-downs including accelerated depreciation and impairment charges are not included in the above table.


(3)	Primarily foreign currency translation adjustments.