Note 3 – Restructuring Audited

Year ended 31 December 2016
million CHF
Specialty
Ingredients
Pharma&
Biotech
Corporate Total
         
Impairment of property, plant and equipment, intangible assets and goodwill 1 5 50 0 55
Restructuring charges 9 16 2 27
Total 14 66 2 82

 

Year ended 31 December 2015
million CHF
Specialty
Ingredients
Pharma&
Biotech
Corporate Total
         
Impairment of property, plant and equipment 1 3 47 2 52
Restructuring charges 2 9 1 12
Total 5 56 3 64

In 2016 the Special Ingredients segment redefined the strategy of its U.S. Water Treatment business. This led to an impairment of dedicated assets (CHF 1 million) and restructuring charges resulting from the write-off and disposal of inventories (CHF 8 million). In addition, Lonza further optimized its product portfolio of the Visp (CH) site, which resulted in impairment losses of CHF 3 million. The costs for these measures are included within cost of goods sold.

The impairment losses within Pharma&Biotech segment include CHF 42 million related to Peptides assets as disclosed in note 4.3, while the restructuring loss of this segment comprise the expected lease termination cost (CHF 13 million) of Lonza's former manufacturing site in Hopkinton, MA (USA). These costs are included in other operating expenses.

The restructuring activities in 2015 reflect the transfer of Lonza's microbial manufacturing from the Kouřim (CZ) site to the Visp (CH) site that resulted in an impairment charge of CHF 39 million and restructuring costs of CHF 8 million. In addition, Lonza recognized an impairment loss of CHF 13 million on property, plant and equipment related to Walkersville, MD (USA). All of these costs were included within cost of goods sold.