
In millions	Severance and other employee-related costs		Other charges (income) (1)		Asset disposal charges (2)		Total
Performance Chemicals' repositioning	$	9.8	$	39.7	$	123.2	$	172.7
Other (3)	0.3		0.4		1.6		2.3
Year ended December 31, 2024	$	10.1	$	40.1	$	124.8	$	175.0
Performance Chemicals' repositioning	8.6		1.5		103.0		113.1
Other (3)	9.8		0.1		2.6		12.5
Year ended December 31, 2023	$	18.4	$	1.6	$	105.6	$	125.6

Other	—		—		—		—
Year ended December 31, 2022	$	—	$	—	$	—	$	—

(2) Primarily represents property, plant, and equipment and finite-lived intangible asset write-downs, accelerated depreciation and amortization, and impairment charges on certain assets, which were or are to be disposed of or abandoned. Also included, to the extent incurred, the acceleration effect of re-estimating settlement dates and revised cost estimates associated with asset retirement obligations related to asset disposal charges that are included within restructuring charges.

(3) During 2023, we incurred severance and asset charges associated with targeted workforce reduction initiatives. During 2024, we took further steps to streamline our Performance Chemicals cost structure and improve the profitability of the segment, resulting in additional restructuring charges of $2.3 million, including $1.6 million in asset disposal charges, $0.2 million in foreign currency translation adjustments, and $0.2 million in other charges.

On November 1, 2023, we announced a number of strategic actions designed to reposition our Performance Chemicals reportable segment to improve profitability and reduce the cyclicality of the Company as a whole. These actions increased our focus on growing our most profitable Performance Chemicals product lines, such as road technologies, and diversifying our raw material stream to non-CTO based fatty acids. The repositioning focused on reducing exposure to lower margin end-use markets of our industrial specialties product line, such as adhesives, publication inks, and oilfield, representing approximately 45 percent of our industrial specialties product line's historical annualized net sales. The repositioning included the permanent closure of our Performance Chemicals CTO refinery and our manufacturing plant located in DeRidder, Louisiana (the “DeRidder Plant”), including the polyol production assets associated with the APT reportable segment. All production at the DeRidder Plant ceased in the first quarter of 2024. The Performance Chemicals’ repositioning initiative included additional corporate and business cost reduction actions executed in November 2023.

Additionally, in July 2024, we announced plans to transition the refining of oleo-based products manufactured for our Performance Chemicals reportable segment from our Crossett, Arkansas manufacturing plant (the “Crossett Facility”) to our North Charleston, South Carolina manufacturing plant. This action included the closure of the Crossett Facility, as well as additional corporate and business cost reduction actions. We ceased production at the Crossett Facility in the third quarter of 2024.

The actions referenced above, when combined with other targeted workforce reduction initiatives, during 2024 and 2023 resulted in the reduction of Ingevity's global workforce by 23 percent. Specific to Performance Chemicals, the reduction represented approximately 40 percent of the reportable segment's workforce.

We expect to incur total charges of approximately $350.0 million, excluding CTO resale activity as described below, associated with the Performance Chemicals repositioning, consisting of approximately $250.0 million in asset-related charges, approximately $25.0 million in severance and other employee-related costs, and approximately $75.0 million in other restructuring costs including decommissioning, dismantling and removal charges, and contract termination costs. We expect approximately $250.0 million of the total charges to be non-cash and $100.0 million to be settled in cash. Through December 31, 2024, we have incurred $311.8 million associated with these actions, including $244.8 million of non-cash asset-related charges, excluding $7.4 million related to an asset retirement obligation ("ARO"), and $67.0 million of charges to be settled in cash, which includes the aforementioned ARO. As of December 31, 2024, $54.5 million of the charges to be settled in cash have been paid and all non-cash charges have been incurred. In total, we expect approximately $100 million of cash charges, including approximately $20-$25 million during 2025.

The Company believes the collective actions of workforce, operational, and regional business exits will hinder our ability to dispose of the associated inventory on hand. As a result, in the years ended December 31, 2024 and 2023, we recorded $6.3 million and $19.7 million, respectively, of non-cash, lower of cost or market, inventory charges to adjust the carrying value of the impacted inventory to what we will realize upon disposal, less disposal costs. These inventory charges are recorded to Cost of sales on the consolidated statement of operations. Since these inventory charges are directly attributable to the Performance Chemicals’ repositioning, that is, they do not represent normal, recurring expenses necessary to operate our business, we have excluded such impact from the financial results of our Performance Chemicals reportable segment. Refer to Note 19 for more information.

The DeRidder Plant closure, and the corresponding reduced CTO refining capacity, significantly reduced our CTO volume requirements. However, we were obligated under an existing CTO supply contract to purchase CTO volumes through 2025 at amounts in excess of the CTO volumes needed to support our business operations. To manage this excess inventory, we sold CTO volumes (herein referred to as "CTO resales") in the open market. During the years ended December 31, 2024 and 2023, we incurred $52.7 million and $22.0 million of CTO resale losses, which are recorded as Other (income) expense, net on the consolidated statements of operations. Refer to Note 2, under the section: Non-operating income and expense, for more information.

On July 1, 2024, we terminated the CTO supply contract that resulted in these excess CTO volumes. As consideration for the early termination of the CTO supply contract, we made cash payments totaling $100.0 million during 2024. The charge was recorded within Other (income) expense, net on the consolidated statements of operations for the year ended December 31, 2024. As a result of the termination, the purchases under the CTO supply contract ended effective June 30, 2024. The CTO resale activity described above ended in 2024 and no excess CTO volumes were on hand at December 31, 2024.

The charges we currently expect to incur in connection with these actions are subject to a number of assumptions and risks, and actual results may differ materially. We may also incur other material charges not currently contemplated due to events that may occur as a result of, or in connection with, these actions.

In April 2023, we implemented the feedstock transition of our Crossett, Arkansas manufacturing plant (“Crossett”). This transition converted Crossett from a CTO-based feedstock production facility to produce fatty acids from alternative plant-based feedstocks. During the years ended December 31, 2024 and 2023, we incurred zero and $22.1 million in costs, including zero and $8.8 million in asset disposal costs, respectively.

Our North Charleston, South Carolina Performance Chemicals manufacturing plant has historically been co-located with a Smurfit WestRock Company (“WestRock”) paper mill. In May 2023, WestRock announced that it would permanently cease operating its North Charleston paper mill by August 31, 2023 and notified us that it was terminating the shared services in accordance with our operating agreement. WestRock ceased production at their North Charleston paper mill in June 2023. During 2023, we executed a transition plan to separate certain critical operating services WestRock had historically provided to us such as steam, water and wastewater treatment. During the years ended December 31, 2024 and 2023, we incurred charges of $11.2 million and $14.8 million, including $4.8 million and $4.3 million in asset disposal costs, respectively.

Our enterprise resource planning tool implementation and associated business transformation initiative concluded in the fourth quarter of 2023. Costs incurred, during the years ended December 31, 2024, 2023, and 2022, of zero, $7.7 million, and $13.8 million, respectively, represent costs directly associated with the business transformation initiative that, in accordance with GAAP, could not be capitalized.


	Balance at		Change in	Cash		Balance at
In millions	12/31/2023 (1)		Reserve (2)	Payments	Other (3)	12/31/2024 (1)

Severance and other employee-related costs	$	7.3	10.1	(13.0)	(0.2)	$	4.2
Other charges (income)	0.9		40.1	(39.9)	(0.2)	0.9



Restructuring	8.2		50.2	(52.9)	(0.4)	5.1
Other (income) charges, net	—		6.4	(6.4)	—	—
Restructuring and Other (income) charges, net reserves	$	8.2	56.6	(59.3)	(0.4)	$	5.1

	Balance at		Change in	Cash		Balance at
In millions	12/31/2022 (1)		Reserve (2)	Payments	Other (3)	12/31/2023 (1)

Severance and other employee-related costs	$	—	8.6	(1.5)	0.2	$	7.3
Other charges (income)	0.5		11.4	(11.0)	—	0.9
Restructuring	0.5		20.0	(12.5)	0.2	8.2
Other (income) charges, net	—		31.5	(31.5)	—	—
Restructuring and Other (income) charges, net reserves	$	0.5	51.5	(44.0)	0.2	$	8.2

(2) Includes severance and other employee-related costs, exited leases, CTO supply contract terminations and other miscellaneous exit costs. Any asset write-downs including accelerated depreciation and impairment charges are not included in the above table.