Three months ended Six months ended June 30 June 30 -------------------- -------------------- 2015 2016 2015 2016 --------- --------- --------- --------- Restructuring (a) $ 9.5 $ 4.5 $ 9.8 $ 6.5 Other (b) (0.2) (7.5) (0.2) (7.8) --------- --------- --------- $ 9.3 $ (3.0) $ 9.6 $ (1.3) ========= ========= ========= =========
We perform ongoing evaluations of our business, operational efficiency and cost structure, and implement restructuring actions as we deem necessary. As a result of our most recent evaluation, during the second quarter and first half of 2016, we recorded restructuring charges of $4.5 and $6.5, respectively, compared to $9.5 and $9.8, respectively, for the second quarter and first half of 2015. Our restructuring actions for the first half of 2016 and 2015 included consolidating certain of our sites and reducing our workforce. During the second quarter of 2016, we recorded cash charges of $2.3, primarily for employee termination costs and contractual lease obligations related to operations that we have begun to wind down, and non-cash charges of $2.2, primarily to write down certain plant assets and equipment to recoverable amounts. During the second quarter of 2015, we consolidated two of our semiconductor sites, to reduce the cost structure and improve the margin performance of that business, as well as implemented employee headcount reductions in various geographies. We recorded cash charges of $5.3 during the second quarter of 2015, primarily for employee termination costs and non-cash charges of $4.2, primarily to write down certain equipment to recoverable amounts. Our restructuring provision at June 30, 2016 was $3.8 (December 31, 2015 -- $10.7) comprised primarily of employee termination and lease obligation costs.
The recognition of restructuring charges requires us to make certain judgments and estimates regarding the nature, timing and amounts associated with our restructuring actions. Our major assumptions include the number of employees to be terminated and the timing of such terminations, the measurement of termination costs, the timing and amount of lease obligations and any sublease recoveries from exited sites, and the timing of disposition and estimated fair values of assets available for sale, as applicable. We develop detailed plans and record termination costs for employees informed of their termination. For leased facilities that we intend to exit, the lease obligation costs represent future contractual lease payments less estimated sublease recoveries and cancellation fees, if any. We engage independent brokers to determine the estimated fair values less costs to sell for assets we no longer use and which are available for sale. We recognize an impairment loss for assets whose carrying amount exceeds their respective fair values less costs to sell as determined by such independent brokers. We also record adjustments to reflect actual proceeds received upon the disposition of these assets. At the end of each reporting period, we evaluate the appropriateness of our restructuring charges and balances. Further adjustments may be required to reflect actual experience or changes in estimates.
In July 2016, we received recoveries of damages of $12.0 in connection with the settlement of class action lawsuits in which we were a plaintiff, related to certain purchases we made in prior periods. We recorded these recoveries as other current assets on our consolidated balance sheet as of June 30, 2016. We also recorded a provision in the second quarter of 2016 with respect to the settlement of an unrelated legal matter based on our current estimate of the likely outcome.
10. INCOME TAXES
Our effective income tax rate can vary significantly quarter-to-quarter for various reasons, including the mix and volume of business in lower tax jurisdictions within Europe and Asia, in jurisdictions with tax holidays and tax incentives, and in jurisdictions for which no deferred income tax assets have been recognized because management believed it was not probable that future taxable profit would be available against which tax losses and deductible temporary differences could be utilized. Our effective income tax rate can also vary due to the impact of restructuring charges, foreign exchange fluctuations, operating losses, and changes in our provisions related to tax uncertainties.
Our net income tax expense for the second quarter of 2016 was adversely affected by taxable foreign exchange impacts of $2.5 arising from the weakening of the Malaysian ringgit and Chinese renminbi relative to the U.S. dollar (our functional currency).
See note 12 regarding income tax contingencies.
11. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
Our financial assets are comprised primarily of cash and cash equivalents, accounts receivable, outstanding cash advances receivable and derivatives used for hedging purposes. Our financial liabilities are comprised primarily of accounts payable, certain accrued and other liabilities and provisions, the Term Loan, borrowings under the Revolving Facility, and derivatives. We record the majority of our financial liabilities at amortized cost except for derivative liabilities, which we measure at fair value. We classify our term deposits as held-to-maturity. We record our short-term investments in money market funds at fair value, with changes recognized in our consolidated statement of operations. The carrying value of the Term Loan approximates its fair value as it bears interest at a variable market rate. The carrying value of the outstanding cash advances receivable from the Solar Supplier approximates their fair value due to their relatively short term to maturity. We classify the financial assets and liabilities that we measure at fair value based on the inputs used to determine fair value at the measurement date. See note 20 of our 2015 annual audited consolidated financial statements for details of the input levels used and our fair value hierarchy at December 31, 2015. There have been no significant changes to the source of our inputs since December 31, 2015.