Restructuring and Other Charges (Income)

12 Months Ended

Dec. 31, 2021

Restructuring and Related Activities [Abstract]

Restructuring and Other Charges (Income)

The following table shows total restructuring and other charges (income) included in the respective line items of the consolidated statements of income (loss):


	Year Ended December 31,
(in Millions)	2021		2020		2019
Restructuring charges	$	41.1	$	42.6	$	62.2
Other charges (income), net	66.9		89.6		108.8
Total restructuring and other charges (income)	$	108.0	$	132.2	$	171.0

Restructuring charges



(in Millions)	Severance and Employee Benefits		Other Charges (Income) (1)		Asset Disposal Charges (2)		Total
DuPont Crop restructuring	$	1.2	$	4.5	$	11.0	$	16.7
Regional realignment	5.5		5.3		0.2		11.0
Other items	6.0		0.5		6.9		13.4
Year ended December 31, 2021	$	12.7	$	10.3	$	18.1	$	41.1
DuPont Crop restructuring	$	9.2	$	3.8	$	27.2	$	40.2
Other items	2.8		—		(0.4)		2.4
Year ended December 31, 2020	$	12.0	$	3.8	$	26.8	$	42.6
DuPont Crop restructuring	$	9.1	$	5.2	$	12.1	26.4
Furadan® product exit	—		—		34.1		34.1
Other items	1.7		—		—		1.7
Year ended December 31, 2019	$	10.8	$	5.2	$	46.2	$	62.2

____________________

(1)Primarily represents third-party costs associated with miscellaneous restructuring activities. Other income, if applicable, primarily represents favorable developments on previously recorded exit costs and recoveries associated with restructuring.

(2)Primarily represents asset write-offs (recoveries), and 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.

Regional realignment

In April 2021, we began to consolidate our EMEA regional headquarters to a new office location in Geneva, Switzerland. Restructuring charges related to regional realignment activities are primarily related to severance and employee relocation costs as well as other costs associated with the European headquarter relocation.

Furadan® Product Exit

During the fourth quarter of 2019, we decided to exit sales of all carbofuran formulations (including Furadan® insecticide/nematicide, Curaterr® insecticide/nematicide and any other brands used with carbofuran products) globally effective December 31, 2019. As a result of this decision, we accelerated the recognition of asset retirement obligations and asset write offs associated with the exit.

DuPont Crop Restructuring

On November 1, 2017, we completed the acquisition of the DuPont Crop Protection Business. See Note 5 "Acquisitions" to the consolidated financial statements included within this Form 10-K for more details. As also discussed in Note 5, we completed the integration of the DuPont Crop Protection Business as of June 30, 2020 except for the completion of certain in-flight initiatives including the DuPont Crop restructuring program. For the year ended December 31, 2021, we incurred restructuring charges of $16.7 million, which primarily reflects non-cash charges and to a lesser extent remaining severance. For the year ended December 31, 2020, we incurred restructuring charges of $40.2 million, which primarily represented severance and other employee related costs as well as accelerated depreciation on fixed assets for the planned exit of certain facilities. Restructuring charges associated with the DuPont program are largely complete and any future charges are not expected to be material.

Roll forward of restructuring reserves

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


(in Millions)	Balance at 12/31/19		Change in reserves (3)		Cash payments		Other (4)		Balance at 12/31/20 (6)		Change in reserves (3)		Cash payments (5)		Other (4)		Balance at 12/31/21 (6)
DuPont Crop restructuring (1)	$	14.5	$	13.0	$	(14.2)	$	0.3	$	13.6	$	5.7	$	(10.5)	$	(0.2)	$	8.6
Regional realignment	—		—		—		—		—		10.8		(6.8)		—		4.0

Other workforce related and facility shutdowns (2)	0.1		2.8		(0.1)		—		2.8		6.5		(7.0)		—		2.3

Total	$	14.6	$	15.8	$	(14.3)	$	0.3	$	16.4	$	23.0	$	(24.3)	$	(0.2)	$	14.9

____________________

(1)Primarily consists of real estate exit costs and severance associated with DuPont Crop restructuring activities.

(2)Primarily severance costs related to workforce reductions and facility shutdowns described in the Other items section of the Restructuring charges table above.

(3)Primarily severance, exited lease, contract termination and other miscellaneous exit costs. The accelerated depreciation and impairment charges noted above impacted our property, plant and equipment or intangible balances and are not included in this table.

(4)Primarily foreign currency translation adjustments.

(5)In addition to the spend above there was also $3.6 million and $6.0 million spending related to the Furadan® asset retirement obligation for the years ended December 31, 2020 and 2021 and also includes $4.4 million of payments for certain historical India indirect tax matters for the year ended December 31, 2021.

(6)Included in "Accrued and other liabilities" and "Other long-term liabilities" on the consolidated balance sheets.

Other charges (income), net


	Year Ended December 31,
(in Millions)	2021		2020		2019
Environmental charges, net	$	27.1	$	24.9	$	108.7

Isagro Fluindapyr Acquisition	—		65.6		—

Other items, net	39.8		(0.9)		0.1
Other charges (income), net	$	66.9	$	89.6	$	108.8

Environmental charges, net

Environmental charges represent the net charges associated with environmental remediation at continuing operating sites. 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. During the fourth quarter of 2019, we recorded a charge of $72.8 million as a result of an unfavorable court ruling we received in relation to the Pocatello Tribal Litigation at one of our environmental sites. We remeasure our discounted liability balance associated with this matter according to current interest rates. See Note 12 to the consolidated financial statements included within this Form 10-K for further information regarding this matter.

Isagro Fluindapyr Acquisition

In May 2020, we entered into a binding offer with Isagro S.p.A ("Isagro") to acquire the remaining rights for Fluindapyr active ingredient assets from Isagro. In July 2020, we entered into an asset sale and purchase agreement with Isagro. On October 2, 2020, we closed on the transaction with a purchase price of approximately $65 million. Fluindapyr has been jointly developed by FMC and Isagro under a 2012 research and development collaboration agreement. The transaction provided us with full global rights to the Fluindapyr active ingredient, including key U.S., European, Asian, and Latin American fungicide markets. The transaction transfers to FMC all intellectual property, know-how, registrations, product formulations and other global assets of the proprietary broad-spectrum fungicide molecule.

The Fluindapyr acquisition did not meet the criteria within ASC 805 to qualify as a business and as a result it was treated as an asset acquisition. Based on the current development stage of the technology, the acquired assets have been classified as in-process research and development. As part of our evaluation, we consider the current development phase of the molecule being acquired. Molecules that have not received formal regulatory approval are still considered in process due to the inherent uncertainty with the approval process. As a result, these assets were immediately expensed. While this transaction resulted in an immediate expense of the purchase price under the accounting rules, this acquisition expands our fungicide portfolio by giving us full global rights to the Fluindapyr active ingredient and is an important strategic addition to our product line. We recorded charges totaling $65.6 million in 2020, including transaction costs.

Other items, net

Other items, net in 2021 includes $33.5 million of charges for the establishment of reserves for certain historical India indirect tax matters that were triggered during the period. See Note 20 to the consolidated financial statements included within this Form 10-K for further information. Other items, net in 2020 and 2019 were not material.