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Restructuring and Other Charges (Income) | 12 Months Ended
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Dec. 31, 2023
Restructuring and Related Activities [Abstract] |
Restructuring and Other Charges (Income) | 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) | 2023 |  | 2022 |  | 2021
Restructuring charges (income) | $ | 48.4 |  |  | $ | (26.1) |  |  | $ | 41.1 |
Other charges (income), net | 163.9 |  |  | 119.2 |  |  | 66.9 |
Total restructuring and other charges (income) | $ | 212.3 |  |  | $ | 93.1 |  |  | $ | 108.0 |
Restructuring charges (income)
(in Millions) | Severance and Employee Benefits |  | Other Charges (Income) (1) |  | Asset Disposal Charges (2) |  | Total
Project Focus | $ | 40.1 |  |  | $ | 5.4 |  |  | $ | — |  |  | $ | 45.5 |
DuPont Crop restructuring | — |  |  | (8.1) |  |  | 2.8 |  |  | (5.3) |
Other items | 6.9 |  |  | 1.3 |  |  | — |  |  | 8.2 |
Year ended December 31, 2023 | $ | 47.0 |  |  | $ | (1.4) |  |  | $ | 2.8 |  |  | $ | 48.4 |
DuPont Crop restructuring | $ | — |  |  | $ | (49.9) |  |  | $ | 1.2 |  |  | $ | (48.7) |
Regional realignment | 3.8 |  |  | 4.1 |  |  | — |  |  | 7.9 |
Other items | 2.1 |  |  | 2.6 |  |  | 10.0 |  |  | 14.7 |
Year ended December 31, 2022 | $ | 5.9 |  |  | $ | (43.2) |  |  | $ | 11.2 |  |  | $ | (26.1) |
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 |
____________________ (1)Primarily represents third-party costs associated with miscellaneous restructuring activities, including third-party costs. Other income, if applicable, primarily represents favorable developments on previously recorded exit costs and recoveries associated with restructuring. The years ended December 31, 2023 and 2022 includes the recognition of a gain for land disposition, described below. (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. Project Focus In response to the unprecedented downturn in the global crop protection market that resulted in severe channel destocking, which has materially impacted volumes in 2023, we initiated a global restructuring plan, referred to as "Project Focus." This program is designed to right-size our cost base and optimize our footprint and organizational structure with a focus on driving significant cost improvement and productivity. We expect to fully implement the plan by the end of 2025. We currently expect to incur pre-tax restructuring charges in the range of approximately $180 to $215 million, including but not limited to employee severance and related benefit costs, asset write-off charges, and consulting and other professional service fees. We may incur additional asset write-off charges, inventory and other working capital charges, primarily associated with the liquidation of excess inventory in select markets, relocation charges, and contract termination charges in connection with Project Focus and will provide an estimate of charges when known. For the year ended December 31, 2023, we have incurred $40.1 million in severance charges related to a voluntary separation program in select jurisdictions and workforce reduction actions in our Brazil business as well as $5.4 million of provider costs. The charges incurred during 2023 are included in the total estimated range for Project Focus discussed above. The remaining amounts will be reflected in our consolidated results of operations as they become probable and estimable in accordance with the relevant accounting guidance. DuPont Crop Restructuring On November 1, 2017, we acquired the DuPont Crop Protection Business. We completed the integration of the DuPont Crop Protection Business in 2020 except for the completion of certain in-flight initiatives including restructuring program efforts. For the year ended December 31, 2023, we recognized income of $5.3 million, which primarily relates to the gain recorded for the disposition of land discussed further below. For the year ended December 31, 2022 we recognized income of $48.7 million, which primarily reflects the gain recorded in the fourth quarter on the disposition of a manufacturing site, slightly offset by other restructuring charges. For the year ended December 31, 2021 we incurred restructuring charges of $16.7 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. During December 2022, we finalized a land transfer agreement with the Shanghai Municipal People's Government. Under the terms of the agreement, we relinquished control of a previously shutdown manufacturing facility that was acquired as part of the DuPont Crop Protection Business and that had been operating under a state- owned land use certificate. Previous shutdown charges associated with closing this plant were included in "Restructuring and other charges ("income")". As part of the land transfer, we received cash proceeds of $5.8 million in 2023 and $50.5 million in 2022 for the disposition of land as well as a recognition of a gain in the same amount that was also included in the "Restructuring and other charges ("income")" line item. Restructuring charges associated with the DuPont program are 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 12/31/21 |  | Change in reserves (5) |  | Cash payments |  | Other (6) |  | Balance at 12/31/22 (7) |  | Change in reserves (5) |  | Cash payments |  | Other (6) |  | Balance at 12/31/23 (7)
DuPont Crop restructuring (1) | $ | 8.6 |  |  | $ | 0.6 |  |  | $ | (4.7) |  |  | $ | 0.5 |  |  | $ | 5.0 |  |  | $ | — |  |  | $ | (1.0) |  |  | $ | (0.1) |  |  | $ | 3.9 |
Regional realignment (2) | 4.0 |  |  | 7.9 |  |  | (9.3) |  |  | 0.4 |  |  | 3.0 |  |  | — |  |  | (2.2) |  |  | — |  |  | 0.8 |
Project Focus (3) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 45.5 |  |  | (2.4) |  |  | — |  |  | 43.1 |
Other workforce related and facility shutdowns (4) | 2.3 |  |  | 4.7 |  |  | (4.2) |  |  | (0.2) |  |  | 2.6 |  |  | 9.9 |  |  | (10.3) |  |  | 0.4 |  |  | 2.6 |
Total | $ | 14.9 |  |  | $ | 13.2 |  |  | $ | (18.2) |  |  | $ | 0.7 |  |  | $ | 10.6 |  |  | $ | 55.4 |  |  | $ | (15.9) |  |  | $ | 0.3 |  |  | $ | 50.4 |
____________________ (1)Primarily consists of real estate exit costs and severance associated with DuPont Crop restructuring activities. (2)Primarily consists of severance and employee relocation costs as well as other costs associated with the relocation of our European headquarters and the consolidation of our Asia Pacific operations into a single regional headquarters in Singapore. (3)Relates to the global restructuring plan initiated in 2023 and primarily consists of severance charges related to a voluntary separation program in select jurisdictions as well as workforce reduction actions in our Brazil business. (4)Primarily severance costs related to workforce reductions and facility shutdowns. (5)Primarily other miscellaneous exit costs. The accelerated depreciation and impairment charges associated with these restructurings that have impacted our property, plant and equipment or intangible balances are not included in this table. (6)Primarily foreign currency translation adjustments. (7)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) | 2023 |  | 2022 |  | 2021
Environmental charges, net | $ | 66.9 |  |  | $ | 34.7 |  |  | $ | 27.1 |
Exit from Russian Operations | — |  |  | 76.8 |  |  | — |
Currency related matters | 75.2 |  |  | — |  |  | — |
IPR&D asset acquisition charges | 13.0 |  |  | — |  |  | — |
Other items, net | 8.8 |  |  | 7.7 |  |  | 39.8 |
Other charges (income), net | $ | 163.9 |  |  | $ | 119.2 |  |  | $ | 66.9 |
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. Exit from Russian Operations As the Russia-Ukraine war continues, our values as a company as well as the sanctions imposed on, and cross-sanctions imposed and announced by, the Russian Federation led us to cease operations and business in Russia. This decision was made in mid-April of 2022 when we concluded that it was not sustainable to continue operations. As a result of this decision, we recorded a charge of approximately $76.8 million during the twelve months ended December 31, 2022. The charge primarily consists of noncash asset write offs, mainly working capital as well as the value of a packaging and formulation facility. This charge included approximately $7 million of cash that was stranded and not accessible to us. Currency related matters During the twelve months ended December 31, 2023, we incurred $101.0 million in currency related charges driven by specific events in Argentina, and to a lesser extent, Pakistan. These charges relate primarily from the recent and substantial actions implemented by the Argentine Government during the fourth quarter of 2023. On December 12th, 2023, Argentina’s Economy Minister announced emergency measures which included an increase in the official exchange rate to an average of 800 Argentine Pesos per USD. The devaluation of the currency by over 50% resulted in $63.4 million in losses related to the remeasurement of our monetary net assets. Additionally, we incurred $4.9 million in remeasurement losses during the third quarter of 2023 following similar devaluation actions taken by the government during that period. The combined $68.3 million in losses have been recorded as part of our Restructuring and Other Charges (Income) line item within on our Consolidated Statements of Income (Loss). Second, in combination with the devaluation actions, the government enacted two new decrees which expanded the scope of certain tax and foreign exchange measures under the Impuesto PAIS tax, “PAIS”. The first decree extends the application of the PAIS tax to include foreign denominated payments related to the imports of goods and services. The second decree substantially increased the rates applicable to these operations. The application of the tax became effective immediately and was applied retrospectively to import activity that will ultimately be settled in a currency other than Argentina Pesos. As a result of the initial period adoption, we recognized a charge of $25.8 million. Due to the nature of the tax, the charge has been recorded as part of Cost of Sales and Services within our Consolidated Statements of Income (Loss). Based on this classification, this activity is excluded from the table above. The twelve months ended December 31, 2023, also includes a $6.9 million remeasurement charge resulting from the significant currency depreciation of the Pakistani Rupee during the first quarter of 2023. On January 25, 2023, the Pakistani Rupee experienced its largest single day drop against the US dollar in over two decades following the removal of the USD-PKR exchange cap in place on the country's currency. This action, combined with the decision by Pakistan's central bank to raise interest rates to record highs during the quarter, resulted in the immediate and significant devaluation of the Pakistani Rupee. These losses have been recorded as part of our Restructuring and Other Charges (Income) line item within our Consolidated Statements of Income (Loss). IPR&D asset acquisition charges During the third quarter of 2023, we finalized a development agreement which will bring to market a new herbicide active ingredient used to control weeds in rice. As part of the agreement, FMC acquired a data set that includes studies and technical research that will be used to support the development of formulations and product registrations. Acquired in-process research and development assets are expensed as incurred and included as a component of "Restructuring and other charges (income)" on the consolidated statements of income (loss).

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