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Restructuring and Divestiture Costs
3 Months Ended
Mar. 31, 2016
Restructuring and Related Activities [Abstract]  
Restructuring and Divestiture Costs

4.  RESTRUCTURING AND DIVESTITURE COSTS

During the three months ended March 31, 2016, the Company had restructuring and divestiture costs pertaining to: (i) the sale of certain assets of its compound additives business, known as Solucor, and its Concord, Ontario compounding operations, in its chlorovinyls segment; (ii) the reorganization of its building products segment, including the sale of our window and door profiles reporting unit; and (iii) workforce and other expense reductions to drive cost savings throughout the Company.

Chlorovinyls

During the three months ended March 31, 2016, our chlorovinyls segment incurred restructuring costs of $10.1 million, primarily relating to severance payments in conjunction with our workforce reduction activities and cost savings initiatives, and non-cash asset write-downs relating to divestitures of $19.9 million. There were no similar charges during the three months ended March 31, 2015.

On February 24, 2016, the Company entered into an asset purchase agreement among RGI and Axiall Corporation, as sellers, and Galata Chemicals (Canada) Inc., as purchaser, for the sale of certain assets of its compound additives business, known as Solucor, and its manufacturing facility located in Bradford, Ontario, for a price of approximately $9.2 million, subject to adjustment based upon the amount of inventory of the Solucor business on the closing date of the transaction, which was February 29, 2016. The Company recognized a loss on the sale of $15.9 million that is recorded in restructuring and divestiture costs in our unaudited condensed consolidated statements of operations for the three months ended March 31, 2016. Also, in conjunction with the sale of our window and door profiles business in our building products segment, the sale of our Concord, Ontario compounding operations resulted in a loss on sale of $4.0 million that is recorded in restructuring and divestiture costs in our unaudited condensed consolidated statements of operations for the three months ended March 31, 2016.

Building Products

During the three months ended March 31, 2016, our building products segment incurred restructuring costs of $2.1 million primarily relating to severance payments in conjunction with our workforce reduction activities and cost savings initiatives, non-cash asset write-downs relating to divestitures of $0.4 million, primarily related to our building products segment. During the three months ended March 31, 2015, our building products segment incurred $0.1 million in restructuring charges.

Corporate

Restructuring costs in corporate, unallocated included severance costs of $1.8 million, and divestiture costs of $2.3 million for the three months ended March 31, 2016. There were no similar costs during the three months ended March 31, 2015.

Restructuring charges during the three months ended March 31, 2016 primarily related to severance payments in conjunction with our workforce reduction activities and cost savings initiatives. Also, as of March 31, 2016, we made cash payments of $2.2 million related to the separation of executives under the terms of the Company’s severance plans and policies. As of March 31, 2016, we had remaining payments of $1.9 million that are expected to conclude by November 2016.