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Restructuring and Other Charges (Income) | 3 Months Ended
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Mar. 31, 2024
Restructuring and Related Activities [Abstract] |
Restructuring and Other Charges (Income) | 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 March 31, |  |
(in Millions) | 2024 |  | 2023 |  |  |  |
Restructuring charges | $ | 33.7 |  |  | $ | 0.9 |  |  |  |  |
Other charges (income), net | 7.2 |  |  | 11.6 |  |  |  |  |
Total restructuring and other charges (income) | $ | 40.9 |  |  | $ | 12.5 |  |  |  |  |
Restructuring charges For detail on restructuring activities which commenced prior to 2024, see Note 8 to our consolidated financial statements included within our 2023 Form 10-K.
| Restructuring Charges
(in Millions) | Severance and Employee Benefits |  | Other Charges (Income) (1) |  | Asset Disposal Charges (Income) (2) |  | Total
Project Focus | $ | 18.9 |  |  | $ | 12.2 |  |  | $ | 2.3 |  |  | $ | 33.4 |
Other items | — |  |  | 0.3 |  |  | — |  |  | 0.3 |
Three Months Ended March 31, 2024 | $ | 18.9 |  |  | $ | 12.5 |  |  | $ | 2.3 |  |  | $ | 33.7 |
DuPont Crop restructuring | $ | — |  |  | $ | (2.4) |  |  | $ | 2.8 |  |  | $ | 0.4 |
Other items | — |  |  | 0.5 |  |  | — |  |  | 0.5 |
Three Months Ended March 31, 2023 | $ | — |  |  | $ | (1.9) |  |  | $ | 2.8 |  |  | $ | 0.9 |
____________________ (1)Primarily represents other charges associated with restructuring activities, including third-party costs. 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 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 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 the plan to be fully executed by the end of 2025. During the three months ended March 31, 2024, charges incurred related to Project Focus include $18.9 million of severance and employee separation costs in connection with various global workforce reduction actions, $11.7 million of professional service provider costs associated with the project, accelerated depreciation of $2.3 million on assets identified for disposal in connection with the restructuring initiative, and $0.5 million of other miscellaneous charges. The charges incurred during the three months ended March 31, 2024 are included in the total estimated range for Project Focus. See Note 8 to our consolidated financial statements in our 2023 Form 10-K for details of the costs previously incurred for Project Focus. The remaining amounts will be reflected in our consolidated results of operations as they become probable and estimable or a triggering event is identified in accordance with the relevant accounting guidance. Contract Manufacturing Termination Agreement - Subsequent Event As previously disclosed as part of Project Focus, we are evaluating our manufacturing footprint which includes a combination of owned facilities and a network of contract manufacturers. During the second quarter of 2024, we finalized a termination agreement to exit a contract with one of our third-party manufacturers. The decision to exit the agreement was driven in part by our ability to source these materials from lower cost locations. As a result, we expect to incur an asset write-off charge of approximately $53 million, which is the unamortized balance on a prepaid asset representing advances made and established as part of the original contract terms. The asset is recorded within "Other assets, including long-term receivables, net" on the consolidated balance sheet as of March 31, 2024. The non-cash charge will be recorded during the three months ended June 30, 2024. There are no other cash charges associated with the termination. Roll forward of restructuring reserves The following table shows a roll forward of restructuring reserves, that will result in cash spending. These amounts exclude accelerated depreciation on fixed assets, asset impairment charges and asset retirement obligations.
(in Millions) | Balance at 12/31/23 (6) |  | Change in reserves (4) |  | Cash payments |  | Other (5) |  | Balance at 3/31/24 (6)
Project Focus (1) | $ | 43.1 |  |  | $ | 30.5 |  |  | $ | (39.9) |  |  | $ | — |  |  | $ | 33.7 |
DuPont Crop restructuring (2) | 3.9 |  |  | — |  |  | (0.4) |  |  | — |  |  | 3.5 |
Other workforce related and facility shutdowns (3) | 3.4 |  |  | 0.3 |  |  | (1.4) |  |  | (0.4) |  |  | 1.9 |
Total | $ | 50.4 |  |  | $ | 30.8 |  |  | $ | (41.7) |  |  | $ | (0.4) |  |  | $ | 39.1 |
____________________ (1)Relates to the global restructuring plan initiated in 2023 and primarily consists of severance charges related to workforce reduction actions across all regions. (2)Represents remaining cash spending on facility separation costs associated with DuPont Crop restructuring activities. (3)Exit costs related to workforce reductions and facility shutdowns on previously implemented restructuring initiatives. (4)Primarily severance and employee separation costs as well as third-party provider fees. The accelerated depreciation and asset impairment charges associated with these restructurings that have impacted our property, plant and equipment or intangible balances are not included in this table. (5)Primarily foreign currency translation and other non-cash adjustments. (6)Included in "Accrued and other liabilities" and "Other long-term liabilities" on the consolidated balance sheets. Other charges (income), net
| Three Months Ended March 31, |  |
(in Millions) | 2024 |  | 2023 |  |  |  |
Environmental charges, net | $ | 3.3 |  |  | $ | 2.3 |  |  |  |  |
Currency related matters | — |  |  | 6.9 |  |  |  |  |
Other items, net | 3.9 |  |  | 2.4 |  |  |  |  |
Other charges (income), net | $ | 7.2 |  |  | $ | 11.6 |  |  |  |  |
Environmental charges, net Environmental charges represent the net charges associated with environmental remediation at continuing operating sites. See Note 11 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. Currency related matters Charges of $6.9 million relate to a remeasurement charge recognized for the three months ended March 31, 2023 resulting from the significant currency depreciation of the Pakistani Rupee. 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).

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- Definition This describes the aggregate amount provided for estimated restructuring charges, remediation costs, gains on sale of assets, in process research and development acquired as part of an asset acquisition, asset impairment losses and other miscellaneous charges to income during an accounting period. Generally, these items are either unusual or infrequent, but not both (in which case they would be extraordinary items). + References No definition available. + Details
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