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28. Restructuring, Impairment and Transaction-Related Costs

Audited information

in CHF m





Restructuring expenses





Payments for restructuring





Impairment loss




thereof charged to PPE (see )




Transaction-related costs










Total restructuring, impairment and transaction-related costs





thereof reported under discontinued operations





Total continuing operations





In order to increase profitability over a sustained period, Clariant implements measures designed to improve the Group’s performance. The aim of these efforts is to increase the Group’s operating result and to reduce . The changes made to the processes and structures result in a reduction of headcount across the Group.

Restructuring. In 2020, Clariant recorded expenses for restructuring in the amount of CHF 141 million (2019: CHF 14 million).

As a result of the most recent economic developments, Clariant has decided to resume its efficiency program. Measures to increase efficiency have been defined, leading to a work force reduction of approximately 600 positions and a reduction of the cost basis in excess of CHF 50 million for the continuing operations over the next two years. Additional measures are implemented to rightsize regional organizations and service units to the reduced size of the Group to avoid remnant costs post the expiration of transitory service agreements following the closing of the divestitures of the and businesses. The rightsizing program foresees a reduction or transfer of approx. 1,000 positions in service and regional structures. An efficiency program was also launched for the Pigments business to reduce above 200 positions and the cost basis enhancing the intrinsic value of the business. Restructuring expenses for the efficiency program for continuing operations has been booked in the amount of CHF 49 million and in the as follows: CHF 12 million to Care Chemicals, CHF 6 million to Catalysis, CHF 19 million to Natural Resources and CHF 12 million to Corporate. In addition in Discontinued Operations, restructuring expenses for the efficiency program has been booked for the Pigments business in the amount of CHF 24 million. For the rightsizing program, restructuring expenses in amount of CHF 68 million has been booked in discontinued operations.

Impairment. The impaiment losses recorded in 2020 concerned mainly properties, plants and equipment in USA, Germany and China. No impairment loss was recorded in 2019.

Transaction-related costs comprise expenses incurred in connection with acquisition or disposal projects and also costs incurred in connection with the implementation of internal reorganizational measures.

The total amount pertaining to continuing operations of CHF 119 million of Restructuring, impairment and transaction-related costs (2019: CHF 50 million) is reported in the income statement from continuing operations as follows: CHF 31 million in Cost of goods sold (2019: CHF 9 million), CHF 75 million in Selling, general and administrative costs (2019: CHF 43 million), CHF 13 million in Research & Development costs (2019: CHF 2 million income).

Net working capital

Net working capital is the difference between a company’s current assets and its current liabilities. View entire glossary


These are plastic additives in the form of granules with dyestuffs or other additives used to dye or alter the properties of natural plastic. View entire glossary


Pigments are substances used for coloring; they are used in a technical manner, for example in the manufacture of dyes, varnishes, and plastics. View entire glossary

Business Area

For the financial reporting, Clariant grouped its businesses in three core Business Areas: Care Chemicals, Catalysis, and Natural Resources. View entire glossary