Note 3 – Restructuring Audited

 

Year ended 31 December 2017
million CHF
Specialty
Ingredients
Pharma&
Biotech
Capsugel Corporate Total
           
Impairment of property, plant and equipment 1 1 18 0 0 19
Restructuring charges 1 4 1 7 13
Total 2 22 1 7 32

 

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


In 2017 Lonza recognized an impairment loss of certain Visp (CH)-related property, plant and equipment of CHF 19 million, which was included within cost of goods sold.

Organizational changes in 2017 of the Group's finance and information technology functions resulted in restructuring charges of CHF 7 million. These costs are included within the Corporate administration and general overhead costs.

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 at the Visp (CH) site, which resulted in impairment losses of CHF 3 million. The costs for these measures were included within cost of goods sold.

The 2016 impairment losses within Pharma&Biotech segment included CHF 42 million related to Peptides assets as disclosed in note 4.2, while the restructuring loss of this segment comprised the expected lease termination cost (CHF 13 million) of Lonza's former manufacturing site in Hopkinton, MA (USA). These costs were included in other operating expenses.