Restructuring, Asset-Related, and Other Charges

3 Months Ended

Mar. 31, 2024

Restructuring And Related Activities [Abstract]

Restructuring, Asset-Related, and Other Charges

Note 4. Restructuring, Asset-related, and Other Charges

The following table sets forth the components of the Company’s restructuring, asset-related, and other charges by segment for the three months ended March 31, 2024 and 2023.


	Titanium Technologies		Thermal & Specialized Solutions		Advanced Performance Materials		Other Segment		Corporate		Total
Three Months Ended March 31, 2024
Employee separation charges:	$	—	$	—	$	—	$	—	$	—	$	—
Decommissioning and other charges:
Titanium Technologies Transformation Plan		4		—		—		—		—		4
Total restructuring and other charges		4		—		—		—		—		4
Asset-related charges:		—		—		—		—		—		—
Total restructuring, asset-related, and other charges	$	4	$	—	$	—	$	—	$	—	$	4

	Titanium Technologies		Thermal & Specialized Solutions		Advanced Performance Materials		Other Segment		Corporate		Total
Three Months Ended March 31, 2023
Employee separation charges:
ERP Implementation Charges	$	—	$	—	$	—	$	—	$	1	$	1
Total employee separation charges		—		—		—		—		1		1
Decommissioning and other charges:
ERP Implementation Charges		—		—		—		—		4		4
Total restructuring and other charges		—		—		—		—		5		5
Asset-related charges:
ERP Implementation Charges		—		—		—		—		11		11
Total asset-related charges		—		—		—		—		11		11
Total restructuring, asset-related, and other charges	$	—	$	—	$	—	$	—	$	16	$	16

Titanium Technologies Transformation Plan

On July 27, 2023, the Company announced the closure of its manufacturing site in Kuan Yin, Taiwan effective August 1, 2023, following the Company’s Board of Directors approval on July 26, 2023. The Company began shutting down production and started decommissioning the plant during the third quarter of 2023 and fully completed the shut-down during the fourth quarter of 2023. Decommissioning activities are expected to be completed in the second quarter of 2024 and dismantling will begin thereafter. Dismantling and removal activities are expected to be completed by the first half of 2025.

As a result, during the three months ended March 31, 2024, the Company recorded charges of approximately $4, primarily related to decommissioning and other charges related to Kuan Yin. Through March 31, 2024, the Company has recorded total charges of approximately $123, consisting of asset-related impairments of $78, employee separation costs of $14, contract termination costs of $17 and decommissioning and other charges of $14. The associated severance payments began in the fourth quarter 2023 and are expected to be substantially completed in the second quarter of 2024. Further, the Company expects to incur additional charges of up to $10 for decommissioning, dismantling and removal activities thereafter, which will be expensed as incurred.

As part of the Titanium Technologies Transformation Plan, following the plant closure, the segment also initiated an organizational redesign to further align its cost structure with its financial objectives. As a result, cumulative employee separation charges of $7 were recorded through March 31, 2024. The employee separation and related payments are expected to be substantially completed in the third quarter of 2024. During the first quarter of 2024, the Company made total cash payments of $15 associated with the Titanium Technologies Transformation Plan, inclusive of severance payments, decommissioning, and other third-party fees.

2023 Restructuring Program

In addition to the Titanium Technologies plan, in 2023, management also initiated additional severance programs to further align the cost structure of the Company’s businesses and corporate functions with its financial objectives. Through March 31, 2024, the Company has recorded cumulative employee separation charges of $4. The severance costs were recognized as follows: $3 in Advanced Performance Materials and $1 in Corporate. The program and related severance payments are expected to be substantially completed in the third quarter of 2024.

Enterprise Resource Planning ("ERP") Implementation Abandonment Charges

During the first quarter of 2023, the Company decided to abandon its implementation of a new ERP software platform and recorded the following charges: $11 write-off of previously deferred software development costs determined to have no alternative use, $4 related to contract termination charges, and $1 of employee separation charges. Employee severance payments related to this charge were completed during the first quarter of 2024.

The following table sets forth the change in the Company’s employee separation-related liabilities associated with its restructuring programs for the three months ended March 31, 2024.


	Titanium Technologies Transformation Plan			2023 Restructuring Program			Total
Balance at December 31, 2023	$	10		$	4		$	14
Charges to income		—			—			—
Payments		(2	)		(2	)		(4	)
Balance at March 31, 2024	$	8		$	2		$	10

With respect to the $17 of contract termination liabilities associated with the Titanium Technologies Transformation Plan, the Company paid $4 and as such, at March 31, 2024 the Company had $13 remaining as an outstanding liability. There were no other significant outstanding liabilities related to the Company’s decommissioning and other restructuring-related charges at March 31, 2024 and December 31, 2023.