RESTRUCTURING, IMPAIRMENT AND OTHER CHARGES

6 Months Ended

Jun. 30, 2025

Restructuring and Related Activities [Abstract]

RESTRUCTURING, IMPAIRMENT AND OTHER CHARGES

Note 3 — RESTRUCTURING, IMPAIRMENT AND OTHER CHARGES

Cloud-based Enterprise Resource Planning System Impairment and Other Related Charges

In the first quarter of 2025, the Company completed a review of its cloud-based enterprise resource planning system, S/4HANA, including updated project timelines, cost incurred to date, required internal resources and expected costs to complete the initial site implementations, and the evolution of options that could provide better returns for shareholders. As a result of this review, the Company determined it would cease the ongoing development of S/4HANA.

As a result of this decision, in the first quarter of 2025, the Company recognized a non-cash, pre-tax impairment charge of $71.6 million associated with capitalized implementation costs. The Company also recognized pre-tax charges of $14.7 million associated with unpaid contractual obligations for hosting fees. Further, the Company recognized charges of $2.8 million associated to severance actions resulting from the decision to cease development of S/4HANA. These charges are included in Selling and administrative expense within the Condensed Consolidated Statements of Income.

Clariant Color Integration Restructuring Program

We are engaged in a restructuring program associated with our integration of Clariant Color. These actions are expected to enable us to better serve customers, improve efficiency and deliver cost savings. We expect that the full restructuring plan will be implemented by the end of 2025 and anticipate that we will incur approximately $70.0 million of charges in connection with the restructuring plan. As of June 30, 2025, $63.8 million had been incurred.

A summary of the Clariant Color integration restructuring is shown below:


(in millions)	Workforce reductions		Plant closing and other		Total
Balance at January 1, 2024	$	30.3	$	0.8	$	31.1
Restructuring charges	0.4		1.6		2.0
Payments, utilization and translation	(23.3)		(1.6)		(24.9)
Balance at December 31, 2024	$	7.4	$	0.8	$	8.2
Restructuring charges	1.4		0.1		1.5
Payments, utilization and translation	(1.9)		(0.1)		(2.0)
Balance at June 30, 2025	$	6.9	$	0.8	$	7.7

Other Restructuring Actions

During the three and six months ended June 30, 2025, the Company recognized charges of $2.6 million and $10.2 million, respectively, primarily associated with plant closure costs and workforce reduction.