XML 31 R21.htm IDEA: XBRL DOCUMENT v3.5.0.2
Business Restructuring
6 Months Ended
Jun. 30, 2016
Restructuring And Related Activities [Abstract]  
Business Restructuring

15.

BUSINESS RESTRUCTURING

In May 2016, the Company announced plans to shut down its Longford Mills, Canada, facility, a part of the Surfactants reportable segment, by the end of 2016. Execution of this plan will result in a workforce reduction of approximately 30 employees.  Production of goods currently manufactured at the Longford Mill’s facility will be moved to other Company North American production sites. The plant closure is expected to enable the Company to improve its asset utilization in North America and to further reduce the Company’s fixed cost base. For the three and six months ended June 30, 2016, the Company recognized $1,061,000 of restructuring expenses, all of which related to employee termination costs. Additional plant closure costs, including decommissioning, are estimated to be $3,000,000 and are expected to be recognized as incurred in the final half of 2016. Earlier in the year, the Company announced the discontinuation of ethoxylation production at the site in the first quarter of 2016.

In addition to the restructuring costs, the Company reduced the useful lives of the manufacturing assets in the Longford Mills plant. As a result, the Company recognized $843,000 and $1,927,000 of additional depreciation expense for the three and six months ended June 30, 2016, respectively (including first quarter depreciation of $1,084,000 related to the ethoxylation assets). The expense was included in the cost of sales line of the consolidated statements of income. The change in the useful lives of the assets will add about $2,600,000 of depreciation expense in the second half of 2016.