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Restructuring and other (income) charges, net | 6 Months Ended
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Jun. 30, 2017
Restructuring and Related Activities [Abstract] |
Restructuring and other (income) charges, net | Restructuring and other (income) charges, net We continually perform strategic reviews and assess the return on our 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 our Condensed Consolidated 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. Detail on the restructuring charges and asset disposal activities is provided below.
| Three Months Ended June 30, |  | Six Months Ended June 30,
In millions | 2017 |  | 2016 |  | 2017 |  | 2016
Restructuring and other (income) charges, net |  |  |  |  |  |  |
Severance and other employee-related costs (1) | $ | — |  |  | $ | — |  |  | $ | 1.3 |  |  | $ | 4.5 |
Asset write-downs (2) | — |  |  | 0.3 |  |  | — |  |  | 0.4 |
Other (income) charges, net (3) | 1.1 |  |  | 0.7 |  |  | 2.1 |  |  | 0.7 |
Total restructuring and other (income) charges, net | $ | 1.1 |  |  | $ | 1.0 |  |  | $ | 3.4 |  |  | $ | 5.6 |
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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.
2017 activities In January 2017, we initiated a reorganization as part of an effort to streamline our leadership team, flatten the organization and reduce costs. As a result of this reorganization, we recorded $1.3 million, in severance and other employee-related costs in the six months ended June 30, 2017. During the three and six months ended June 30, 2017, we also recorded $1.1 million and $2.1 million, respectively, of additional miscellaneous exit costs primarily associated with the exit of our Performance Chemicals' manufacturing operations in Palmeira, Santa Catarina, Brazil which began in the fourth quarter of 2016. We expect less than $1 million of additional exit and disposal costs associated with the Palmeira site shutdown during the second half of 2017. 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. We 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, we recorded severance and other employee-related charges of zero and $2.7 million ($1.9 million related to the Performance Chemicals segment and $0.8 million related to the 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). 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 | 12/31/2016 (1) |  | Reserve (2) |  | Payments |  | Other (3) |  | 6/30/2017 (1)
Restructuring Reserves | $ | 2.2 |  |  | 3.4 |  |  | (5.0 | ) |  | (0.3 | ) |  | $ | 0.3 |
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(1) | Included in "Accrued Expenses" on the Condensed Consolidated 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.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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