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Plant Closure Provisions | 12 Months Ended
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Dec. 31, 2011
Plant Closure Provisions [Abstract] |
Plant Closure Provisions | Note 12. Plant Closure Provisions The principal site giving rise to environmental remediation liabilities is the Octane Additives manufacturing site at Ellesmere Port in the United Kingdom, which management believes is the last ongoing manufacturer of TEL. There are also environmental remediation liabilities on a much smaller scale in respect of our other manufacturing sites in the U.S. and Europe. The liability for estimated closure costs of Innospec's Octane Additives manufacturing facilities includes costs for decontamination and environmental remediation activities (remediation) when demand for TEL diminishes. Severance provisions have been made in relation to Corporate personnel and personnel in each of the three reporting segments. Movements in the provisions are summarized as follows:
(in millions) |  | Severance |  |  | Other Restructuring |  |  | Remediation |  |  | Total |
Total at January 1, 2009 |  | $ | 1.6 |  |  | $ | 0.2 |  |  | $ | 25.1 |  |  | $ | 26.9 |
Charge for the period |  |  | 1.8 |  |  |  | 1.0 |  |  |  | 2.0 |  |  |  | 4.8 |
Expenditure |  |  | (2.1 | ) |  |  | (0.2 | ) |  |  | (1.5 | ) |  |  | (3.8 | )
Exchange effect |  |  | 0.0 |  |  |  | 0.0 |  |  |  | 0.5 |  |  |  | 0.5 |
Total at December 31, 2009 |  |  | 1.3 |  |  |  | 1.0 |  |  |  | 26.1 |  |  |  | 28.4 |
Due within one year |  |  | (0.2 | ) |  |  | (1.0 | ) |  |  | (2.7 | ) |  |  | (3.9 | )
Balance at December 31, 2009 |  | $ | 1.1 |  |  | $ | 0.0 |  |  | $ | 23.4 |  |  | $ | 24.5 |
Total at January 1, 2010 |  | $ | 1.3 |  |  | $ | 1.0 |  |  | $ | 26.1 |  |  | $ | 28.4 |
Charge for the period |  |  | 0.5 |  |  |  | 0.0 |  |  |  | 2.5 |  |  |  | 3.0 |
Expenditure |  |  | (0.4 | ) |  |  | (0.8 | ) |  |  | (2.7 | ) |  |  | (3.9 | )
Exchange effect |  |  | 0.1 |  |  |  | (0.1 | ) |  |  | 0.0 |  |  |  | 0.0 |
Total at December 31, 2010 |  |  | 1.5 |  |  |  | 0.1 |  |  |  | 25.9 |  |  |  | 27.5 |
Due within one year |  |  | (0.5 | ) |  |  | (0.1 | ) |  |  | (3.3 | ) |  |  | (3.9 | )
Balance at December 31, 2010 |  | $ | 1.0 |  |  | $ | 0.0 |  |  | $ | 22.6 |  |  | $ | 23.6 |
Total at January 1, 2011 |  | $ | 1.5 |  |  | $ | 0.1 |  |  | $ | 25.9 |  |  | $ | 27.5 |
Charge for the period |  |  | 0.7 |  |  |  | (0.1 | ) |  |  | 4.5 |  |  |  | 5.1 |
Expenditure |  |  | (0.7 | ) |  |  | 0.0 |  |  |  | (3.1 | ) |  |  | (3.8 | )
Exchange effect |  |  | 0.0 |  |  |  | 0.0 |  |  |  | (0.2 | ) |  |  | (0.2 | )
Total at December 31, 2011 |  |  | 1.5 |  |  |  | 0.0 |  |  |  | 27.1 |  |  |  | 28.6 |
Due within one year |  |  | (0.5 | ) |  |  | 0.0 |  |  |  | (3.6 | ) |  |  | (4.1 | )
Balance at December 31, 2011 |  | $ | 1.0 |  |  | $ | 0.0 |  |  | $ | 23.5 |  |  | $ | 24.5 |
Amounts due within one year refer to provisions where expenditure is expected to arise within one year of the balance sheet date. Severance charges are recognized in the income statement as restructuring costs along with other restructuring costs. Remediation costs are recognized in cost of goods sold. Severance A charge of $0.7 million was recognized in respect of a reduction in EMEA headcount. Other restructuring A residual accrual of $0.1 million, in respect of the relocation of a U.S. sales and administration facility, was released in 2011. Remediation The remediation provision represents the fair value of the Company's liability for environmental liabilities and asset retirement obligations. The accretion expense recognized in 2011 was $2.4 million. The remediation charge also included a further $2.1 million primarily in respect of changes in the scope of future remediation activities. We recognize, at fair value, environmental liabilities when they are probable and costs can be reasonably estimated, and asset retirement obligations when there is a legal obligation and costs can be reasonably estimated. The Company has to anticipate the program of work required and the associated future expected costs, and has to comply with environmental legislation in the relevant countries in which it operates or has operated in. The Company views the costs of vacating our Ellesmere Port site as a contingent liability because there is no present intention to exit the site. The Company has further determined that, due to the uncertain product life of TEL, particularly in the market for aviation gasoline, there exists such uncertainty as to the probability and timing of such cash flows that it is not possible to estimate them sufficiently reliably to recognize a provision. Remediation expenditure against provisions was $3.1 million, $2.7 million and $1.5 million in 2011, 2010 and 2009, respectively.

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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 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 146 -Paragraph 20 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140864-122747 + Details
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