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RESTRUCTURING CHARGES
 6 Months Ended
Jun. 30, 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. We expect to incur additional restructuring charges through 2025 of approximately $15 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. 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. We expect to incur additional restructuring charges through 2025 of approximately $5 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. We expect to incur additional restructuring charges through 2026 of approximately $15 million related to these actions.
Pretax restructuring charges related to these actions include facility exit costs, lease and other contract termination costs, employee severance and related benefits costs and the write-off of equipment and facilities. Pretax restructuring charges, by plan, for the three and six months ended June 30, 2024 and 2023, were as follows:
 Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Pretax Restructuring Charges($ in millions)
Epoxy Optimization Plan$5.8 $13.3 $9.3 $71.1 
McIntosh Plan0.1 2.5 2.0 3.9 
Freeport 2021 Plan
0.3 1.4 0.7 2.1 
Freeport 2019 Plan0.6 2.0 3.1 3.0 
Total restructuring charges$6.8 $19.2 $15.1 $80.1 
The following table summarizes the 2024 and 2023 activities by major component of these restructuring actions and the remaining balances of accrued restructuring costs as of June 30, 2024 and 2023:
 Employee Severance and Related Benefit CostsLease and Other Contract Termination CostsFacility Exit CostsWrite-off of Equipment and FacilityTotal
 ($ in millions)
Balance at January 1, 2023$9.4 $4.2 $— $— $13.6 
Restructuring charges:
First quarter— 39.7 8.4 12.8 60.9 
Second quarter3.3 1.7 9.3 4.9 19.2 
Amounts utilized(1.4)(7.2)(17.7)(17.7)(44.0)
Balance at June 30, 2023$11.3 $38.4 $— $— $49.7 
Balance at January 1, 2024$10.8 $16.7 $— $— $27.5 
Restructuring charges:
First quarter— — 8.3 — 8.3 
Second quarter— 1.7 5.1 — 6.8 
Amounts utilized(7.4)(5.6)(13.4)— (26.4)
Balance at June 30, 2024$3.4 $12.8 $— $— $16.2 
The following table summarizes the cumulative restructuring charges of these restructuring actions by major component through June 30, 2024:
Chlor Alkali Products and VinylsEpoxyTotal
 McIntosh PlanFreeport 2021 PlanFreeport 2019 PlanEpoxy Optimization Plan
 ($ 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 costs11.4 13.8 22.2 25.9 73.3 
Lease and other contract termination costs6.4 — — 30.8 37.2 
Total cumulative restructuring charges$20.5 $13.8 $83.2 $90.8 $208.3 
As of June 30, 2024, we have incurred cash expenditures of $112.2 million and non-cash charges of $79.9 million related to these restructuring actions. The remaining balance of $16.2 million is expected to be paid out through 2027.