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RESTRUCTURING CHARGES | 3 Months Ended
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Mar. 31, 2024
Restructuring and Related Activities [Abstract] |
RESTRUCTURING CHARGES | NOTE 4. RESTRUCTURING CHARGES As a result of weak global resin demand and higher cost structures within the European region, we began a review of our global Epoxy asset footprint to optimize the most productive and cost-effective assets to support our strategic operating model. As part of this review, we announced operational cessations in the fourth quarter of 2022 and the first half of 2023 (collectively, Epoxy Optimization Plan). On June 20, 2023, we announced we had made the decision to cease all remaining operations at our Gumi, South Korea facility, reduce epoxy resin capacity at our Freeport, TX facility, and reduce our sales and support staffing across Asia. These actions were substantially completed by December 31, 2023. On March 21, 2023, we announced we had made the decision to cease operations at our cumene facility in Terneuzen, Netherlands and solid epoxy resin production at our facilities in Gumi, South Korea and Guaruja, Brazil. The closures were completed in the first quarter 2023. During the fourth quarter of 2022, we committed to and completed a plan to close down one of our bisphenol production lines at our Stade, Germany site. For the three months ended March 31, 2024 and 2023, we recorded pretax restructuring charges of $3.5 million and $57.8 million, respectively, for contract termination costs, the write-off of equipment and facility costs, and facility exit costs related to these actions. We expect to incur additional restructuring charges through 2025 of approximately $20 million related to these actions. During 2021, we announced that we had made the decision to permanently close our diaphragm-grade chlor alkali capacity, representing 400,000 tons, at our McIntosh, AL facility (McIntosh Plan). The closure was completed during the third quarter of 2022. For the three months ended March 31, 2024 and 2023, we recorded pretax restructuring charges of $1.9 million and $1.4 million, respectively, for facility exit costs related to this action. We expect to incur additional restructuring charges through 2027 of approximately $20 million related to these actions. On January 18, 2021, we announced we had made the decision to permanently close our trichloroethylene and anhydrous hydrogen chloride liquefaction facilities in Freeport, TX (collectively, Freeport 2021 Plan), which were completed in the fourth quarter of 2021. For the three months ended March 31, 2024 and 2023, we recorded pretax restructuring charges of $0.4 million and $0.7 million, respectively, for facility exit costs related to these actions. We expect to incur additional restructuring charges through 2025 of approximately $10 million related to these actions. On December 11, 2019, we announced that we had made the decision to permanently close a chlor alkali plant with a capacity of 230,000 tons and our vinylidene chloride (VDC) production facility, both in Freeport, TX (collectively, Freeport 2019 Plan). The VDC facility and related chlor alkali plant were closed during the fourth quarter of 2020 and second quarter of 2021, respectively. For the three months ended March 31, 2024 and 2023, we recorded pretax restructuring charges of $2.5 million and $1.0 million, respectively, for facility exit costs related to these actions. We expect to incur additional restructuring charges through 2026 of approximately $15 million related to these actions. The following table summarizes the 2024 and 2023 activities by major component of these restructuring actions and the remaining balances of accrued restructuring costs as of March 31, 2024 and 2023:
| Employee Severance and Related Benefit Costs |  | Lease and Other Contract Termination Costs |  | Facility Exit Costs |  | Write-off of Equipment and Facility |  | Total
| ($ in millions)
Balance at January 1, 2023 | $ | 9.4 |  |  | $ | 4.2 |  |  | $ | — |  |  | $ | — |  |  | $ | 13.6 |
Restructuring charges | — |  |  | 39.7 |  |  | 8.4 |  |  | 12.8 |  |  | 60.9 |
Amounts utilized | (0.7) |  |  | (3.5) |  |  | (8.4) |  |  | (12.8) |  |  | (25.4) |
Balance at March 31, 2023 | $ | 8.7 |  |  | $ | 40.4 |  |  | $ | — |  |  | $ | — |  |  | $ | 49.1 |
Balance at January 1, 2024 | $ | 10.8 |  |  | $ | 16.7 |  |  | $ | — |  |  | $ | — |  |  | $ | 27.5 |
Restructuring charges | — |  |  | — |  |  | 8.3 |  |  | — |  |  | 8.3 |
Amounts utilized | (6.7) |  |  | (3.3) |  |  | (8.3) |  |  | — |  |  | (18.3) |
Balance at March 31, 2024 | $ | 4.1 |  |  | $ | 13.4 |  |  | $ | — |  |  | $ | — |  |  | $ | 17.5 |
The following table summarizes the cumulative restructuring charges of these restructuring actions by major component through March 31, 2024:
|  | Chlor Alkali Products and Vinyls |  | Epoxy |  |  |  | Total
|  | McIntosh Plan |  | Freeport 2021 Plan |  | Freeport 2019 Plan |  |  |  | Epoxy Optimization Plan |  |  |
|  | ($ in millions)
Write-off of equipment and facility |  | $ | 2.7 |  |  | $ | — |  |  | $ | 58.9 |  |  |  |  | $ | 18.3 |  |  |  |  | $ | 79.9 |
Employee severance and related benefit costs |  | — |  |  | — |  |  | 2.1 |  |  |  |  | 15.8 |  |  |  |  | 17.9 |
Facility exit costs |  | 11.4 |  |  | 13.5 |  |  | 21.6 |  |  |  |  | 21.7 |  |  |  |  | 68.2 |
Lease and other contract termination costs |  | 6.4 |  |  | — |  |  | — |  |  |  |  | 29.1 |  |  |  |  | 35.5 |
Total cumulative restructuring charges |  | $ | 20.5 |  |  | $ | 13.5 |  |  | $ | 82.6 |  |  |  |  | $ | 84.9 |  |  |  |  | $ | 201.5 |
As of March 31, 2024, we have incurred cash expenditures of $104.1 million and non-cash charges of $79.9 million related to these restructuring actions. The remaining balance of $17.5 million is expected to be paid out through 2027.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//420/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479823/420-10-S99-2 + Details
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