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10-Q
KOPPERS HOLDINGS INC. filed this Form 10-Q on 08/03/2017
Entire Document
 

 

 

the facility within the next nine to 12 months upon commissioning of a new naphthalene refining plant in Stickney, Illinois.  

 

In November 2016, the Company sold its 30-percent interest in Tangshan Kailuan Koppers Carbon Chemical Company Limited (“TKK”) located in the Hebei Province in China.

 

In July 2016, the Company discontinued coal tar distillation activities at its CMC plant located in Clairton, Pennsylvania.

 

In March 2016, the Company discontinued production at its 60-percent owned CMC plant located in Tangshan, China.

 

In February 2016, the Company announced plans to cease coal tar distillation and specialty pitch operations at both of its United Kingdom CMC facilities. In July 2016, the Company sold substantially all of its CMC tar distillation properties and assets in the United Kingdom. In exchange, the Company transferred cash to the buyer and the buyer assumed historical environmental and asset retirement obligations.

 

In April 2014, the Company ceased its coal tar distillation activities at its CMC facility located in Uithoorn, the Netherlands.

 

In 2011, the Company ceased carbon black production at its CMC facility located in Kurnell, Australia.

Other closure and divestiture activity relates to the Company’s Railroad Utility Products and Services (“RUPS”) business unit. These actions include:

 

In October 2016, the Company agreed to a long-term lease of its wood treatment facility in Houston, Texas to a third party. The facility, owned by the Company’s wholly-owned subsidiary, Wood Protection L.P., was engaged in the manufacturing and sale of pressure-treated dimensional lumber.

 

In August 2015, the Company closed its RUPS plant located in Green Spring, West Virginia.

 

In July 2015, the Company sold the assets of its 50-percent interest in KSA Limited Partnership, a concrete crosstie manufacturer.  

 

In January 2015, Koppers Inc. sold its RUPS North American utility pole business.

Details of the restructuring activities and related reserves are as follows:

 

 

 

Severance and

employee benefits

 

 

Environmental

remediation

 

 

Site

demolition

 

 

Other

 

 

Total

 

(Dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reserve at December 31, 2015

 

$

2.0

 

 

$

4.3

 

 

$

21.9

 

 

$

0.0

 

 

$

28.2

 

Accrual

 

 

2.4

 

 

 

0.1

 

 

 

5.6

 

 

 

5.6

 

 

 

13.7

 

Cost charged against assets

 

 

0.0

 

 

 

0.0

 

 

 

0.0

 

 

 

(1.9

)

 

 

(1.9

)

Reversal of accrued charges

 

 

(1.9

)

 

 

(0.5

)

 

 

(8.7

)

 

 

(0.1

)

 

 

(11.2

)

Cash paid

 

 

(1.0

)

 

 

(2.4

)

 

 

(8.1

)

 

 

(0.2

)

 

 

(11.7

)

Currency translation

 

 

(0.1

)

 

 

0.0

 

 

 

(0.7

)

 

 

(0.2

)

 

 

(1.0

)

Reserve at December 31, 2016

 

$

1.4

 

 

$

1.5

 

 

$

10.0

 

 

$

3.2

 

 

$

16.1

 

Accrual

 

 

0.1

 

 

 

2.1

 

 

 

0.0

 

 

 

3.5

 

 

 

5.7

 

Cost charged against assets

 

 

0.0

 

 

 

0.0

 

 

 

0.0

 

 

 

(3.2

)

 

 

(3.2

)

Reversal of accrued charges

 

 

(0.1

)

 

 

0.0

 

 

 

(0.3

)

 

 

0.0

 

 

 

(0.4

)

Cash paid

 

 

(0.1

)

 

 

(0.7

)

 

 

(0.9

)

 

 

(0.3

)

 

 

(2.0

)

Currency translation

 

 

0.0

 

 

 

0.1

 

 

 

0.0

 

 

 

0.0

 

 

 

0.1

 

Reserve at June 30, 2017

 

$

1.3

 

 

$

3.0

 

 

$

8.8

 

 

$

3.2

 

 

$

16.3

 

 

 

4. Related Party Transactions

 

As of December 31, 2016 the Company had loaned $10.0 million, gross of accumulated equity losses of $1.1 million, to TKK, including interest. The Company had a 30-percent interest in TKK until its sale to TKK’s controlling shareholder in November 2016. The loan and interest has been fully repaid and the Company recorded a gain of $1.3 million in the six months ended June 30, 2017.

 

 

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