Restructuring and Other Charges (Income)

Our restructuring and other charges (income) are comprised of restructuring, asset disposals and other charges (income) as noted below.



	Three Months Ended September 30,				Nine Months Ended September 30,
(in Millions)	2018		2017		2018			2017
Restructuring charges	$	25.1	$	4.4	$	106.6		$	7.1
Other charges (income), net	0.8		2.7		(77.4		)	15.2
Total restructuring and other charges (income)	$	25.9	$	7.1	$	29.2		$	22.3

Restructuring charges

For detail on restructuring activities which commenced prior to 2018, see Note 7 to our consolidated financial statements included with our 2017 Form 10-K.



	Restructuring Charges
(in Millions)	Severance and Employee Benefits⁽¹⁾		Other Charges (Income)⁽²⁾		Asset Disposal Charges ⁽³⁾		Total
DuPont Crop restructuring	$	2.4	$	12.4	$	5.2	$	20.0
Lithium restructuring	—		—		0.3		0.3
Other items	0.5		1.2		3.1		4.8
Three Months Ended September 30, 2018	$	2.9	$	13.6	$	8.6	$	25.1

Other items	$	—	$	—	$	4.4	$	4.4
Three Months Ended September 30, 2017	$	—	$	—	$	4.4	$	4.4

DuPont Crop restructuring	$	10.7	$	15.5	$	66.3	$	92.5
FMC Lithium restructuring	—		1.9		0.5		2.4
Other items	3.3		2.8		5.6		11.7
Nine Months Ended September 30, 2018	$	14.0	$	20.2	$	72.4	$	106.6

Other Items	$	—	$	—	$	7.1	$	7.1
Nine Months Ended September 30, 2017	$	—	$	—	$	7.1	$	7.1

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(1)	Represents severance and employee benefit charges.


(2)	Primarily represents costs associated with lease payments, contract terminations, and other miscellaneous exit costs.


(3)	Primarily represents asset write-offs, accelerated depreciation and impairment charges on long-lived assets, which were or are to be abandoned. To the extent incurred, the acceleration effect of re-estimating settlement dates and revised cost estimates associated with asset retirement obligations due to facility shutdowns, are also included within the asset disposal charges.

2018 Restructuring Activities

DuPont Crop Restructuring

On November 1, 2017, we completed the acquisition of the DuPont Crop Protection Business. See Note 4 for more details. As we integrate the DuPont Crop Protection Business into our existing FMC Agricultural Solutions segment, we have started to and continue to expect to engage in various restructuring activities. These restructuring activities may include workforce reductions, relocation of current operating locations, lease and other contract termination costs and fixed asset accelerated depreciation as well as other asset disposal charges at several of our FMC Agricultural Solutions' operations. Details of key activities to date are as follows.

Subsequent to the acquisition, we conducted an in-depth analysis of key competitive capabilities of the combined business in India which resulted in a significant change to how we operate in the market and therefore a restructuring of our business in India. On July 3, 2018, we announced the adoption of an innovation-focused product strategy that uses a unique market access model anchored by our key, large scale distributors rather than the vast customer base we served prior to the DuPont Crop Protection Acquisition. Additionally, we rationalized our product portfolio and decisively exited a vast majority of the low margin product range. As a result of the change to our market access, we incurred charges of approximately $2 million and $57 million for the three and nine months ended September 30, 2018, which primarily included the write-off of stranded accounts receivables and inventory. We also had workforce reductions which resulted in severance and other employee benefit charges of $1 million and $4 million for the three and nine months ended September 30, 2018.

As part of the acquisition, we acquired the Stine R&D facilities ("Stine") from DuPont. Due to its proximity to our previously existing Ewing R&D center ("Ewing"), in March 2018, we decided to migrate our Ewing R&D activities and employees into the newly acquired Stine facilities. As a result of this decision, we are accelerating the depreciation of certain fixed assets that will no longer be used when we exit the facility. We incurred $9.1 million and $17.4 million of accelerated depreciation charges in the three and nine months ended September 30, 2018, respectively. The cease use criteria was met as of September 30, 2018 as all employees had exited the Ewing facility and the facility became available for use. We record the estimated future liability associated with the rental obligation on the cease use date which resulted in a charge of $11.2 million in the three months ended September 30, 2018. This charge was offset by the reduction of the capital lease liability previously recorded in "Other long-term liabilities" of $6.0 million. In addition to lease termination costs, we incurred severance, relocation and other employee related charges of $4.3 million for the nine months ended September 30, 2018.

FMC Lithium Restructuring

In 2018, we implemented a formal plan to restructure our operations at the FMC Lithium manufacturing site located in Bessemer City, North Carolina. The objective of this restructuring plan was to optimize both the assets and cost structure by reducing certain production lines at the plant. The restructuring decision resulted in primarily shutdown costs which are reflected in the table above.

Roll forward of restructuring reserves

The following table shows a roll forward of restructuring reserves, continuing and discontinued, that will result in cash spending. These amounts exclude asset retirement obligations.



(in Millions)	Balance at 12/31/17 ⁽²⁾		Change in reserves ⁽³⁾		Cash payments			Other			Balance at 9/30/18 ⁽²⁾
DuPont Crop restructuring	$	—	$	26.2	$	(9.2	)	$	(1.5	)	$	15.5
Cheminova restructuring	1.2		—		(1.2		)	—			—
FMC Lithium restructuring	3.0		1.9		(0.8		)	—			4.1
Other workforce related and facility shutdowns ⁽¹⁾	2.3		6.1		(5.8		)	(1.5		)	1.1
Total	$	6.5	$	34.2	$	(17.0	)	$	(3.0	)	$	20.7

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(1)	Primarily severance costs related to workforce reductions and facility shutdowns.


(2)	Included in "Accrued and other liabilities" on the condensed consolidated balance sheets.


(3)	Primarily severance, exited lease, contract termination and other miscellaneous exit costs. Any accelerated depreciation and impairment charges noted above that impacted our property, plant and equipment balances or other long-term assets are not included in the above tables.

Other charges (income), net



	Three Months Ended September 30,					Nine Months Ended September 30,
(in Millions)	2018			2017		2018			2017
Environmental charges, net	$	2.4		$	2.7	$	9.2		$	8.3
Product portfolio sales	(2.2		)	—		(87.2		)	—
Other items, net	0.6			—		0.6			6.9
Other charges (income), net	$	0.8		$	2.7	$	(77.4	)	$	15.2

Environmental charges, net

Environmental charges represent the net charges associated with environmental remediation at continuing operating sites. See Note 12 for additional details. Environmental obligations for continuing operations primarily represent obligations at shut down or abandoned facilities within businesses that do not meet the criteria for presentation as discontinued operations.

Product Portfolio Sales

On February 1, 2018, we sold a portion of our European herbicide portfolio to Nufarm Limited. Additionally, on August 16, 2018, we completed the sale of certain products of our India portfolio to Crystal Crop Protection Limited. Both sales were required by regulatory authorities as part of closing conditions for the DuPont acquisition. Refer to Note 4 for more information. The gain on these sales are recorded within "Restructuring and other charges (income)" on the condensed consolidated statements of income (loss). Proceeds from these sales are included in investing activities on the condensed consolidated statements of cash flows.

Other items, net

Other items, net for the three and nine months ended September 30, 2018 relate to the loss associated with the divestment of a joint venture within FMC Agricultural Solutions. Other items, net for the nine months ended September 30, 2017 primarily relate to exit costs resulting from the termination and deconsolidation of our interest in a variable interest entity that was previously consolidated and was part of our FMC Agricultural Solutions segment.