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RESTRUCTURING ACTIVITIES (Tables) | 6 Months Ended
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Jun. 30, 2024
RESTRUCTURING ACTIVITIES |
Schedule of restructuring charges | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | Six Months Ended | ​ | Cumulative | ​ | ​ | ​
​ | ​ | June 30, | ​ | June 30, | ​ | Life-to-date | ​ | ​ | ​
​ | ​ | 2024 |  | 2023 | ​ | 2024 |  | 2023 | ​ | Charges |  | Segment | ​
Asset Optimization and Corporate Restructuring(1) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Engineered Materials: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Accelerated depreciation | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 9.3 | ​ | Engineered Materials | ​
Employee termination benefits | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 1.2 | ​ | Engineered Materials | ​
Decommissioning and other | ​ | ​ | 0.3 | ​ | ​ | — | ​ | ​ | 1.4 | ​ | ​ | — | ​ | ​ | 4.0 | ​ | Engineered Materials | ​
Plastics Solutions(5): | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Accelerated depreciation | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 19.6 | ​ | Plastics Solutions | ​
Employee termination benefits | ​ | ​ | 0.1 | ​ | ​ | — | ​ | ​ | (0.6) | ​ | ​ | — | ​ | ​ | 4.8 | ​ | Plastics Solutions | ​
Contract terminations | ​ | ​ | 3.0 | ​ | ​ | — | ​ | ​ | 6.7 | ​ | ​ | — | ​ | ​ | 9.3 | ​ | Plastics Solutions | ​
Decommissioning and other | ​ | ​ | 2.3 | ​ | ​ | — | ​ | ​ | 4.1 | ​ | ​ | — | ​ | ​ | 9.1 | ​ | Plastics Solutions | ​
Corporate: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Employee termination benefits | ​ | $ | 0.1 | ​ | $ | — | ​ | $ | 1.3 | ​ | $ | — | ​ | $ | 10.1 | ​ | N/A(2) | ​
Asset Optimization and Corporate Restructuring Subtotal | ​ | $ | 5.8 | ​ | $ | — | ​ | $ | 12.9 | ​ | $ | — | ​ | $ | 67.4 | ​ | ​ | ​
Asset Restructuring Plan(3) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Plastics Solutions(5): | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Accelerated depreciation | ​ | $ | — | ​ | $ | 4.3 | ​ | $ | — | ​ | $ | 5.2 | ​ | $ | 27.4 | ​ | Plastics Solutions(6) | ​
Employee termination benefits | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (0.2) | ​ | ​ | 3.7 | ​ | Plastics Solutions(6) | ​
Contract terminations | ​ | ​ | 1.3 | ​ | ​ | 1.8 | ​ | ​ | 3.1 | ​ | ​ | 4.3 | ​ | ​ | 11.3 | ​ | Plastics Solutions(6) | ​
Decommissioning and other | ​ | ​ | 0.2 | ​ | ​ | 0.4 | ​ | ​ | 0.5 | ​ | ​ | 0.9 | ​ | ​ | 4.7 | ​ | Plastics Solutions(6) | ​
Plastics Solutions: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Accelerated depreciation | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 1.4 | ​ | Plastics Solutions | ​
Employee termination benefits | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (0.6) | ​ | ​ | (0.4) | ​ | ​ | 2.4 | ​ | Plastics Solutions | ​
Decommissioning and other | ​ | ​ | — | ​ | ​ | 0.7 | ​ | ​ | — | ​ | ​ | 1.4 | ​ | ​ | 1.9 | ​ | Plastics Solutions | ​
Engineered Materials: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Accelerated depreciation | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 3.1 | ​ | $ | 6.3 | ​ | Engineered Materials | ​
Employee termination benefits | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 2.7 | ​ | Engineered Materials | ​
Decommissioning and other | ​ | ​ | — | ​ | ​ | (1.4) | ​ | ​ | — | ​ | ​ | (0.8) | ​ | ​ | 1.3 | ​ | Engineered Materials | ​
Asset Restructuring Plan Subtotal | ​ | $ | 1.5 | ​ | $ | 5.8 | ​ | $ | 3.0 | ​ | $ | 13.5 | ​ | $ | 63.1 | ​ | ​ | ​
Transformational Restructuring Program(4) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Employee termination benefits | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 6.7 | ​ | ​ | ​
Transformational Restructuring Program Subtotal | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 6.7 | ​ | N/A(2) | ​
Total Restructuring Charges | ​ | $ | 7.3 | ​ | $ | 5.8 | ​ | $ | 15.9 | ​ | $ | 13.5 | ​ | ​ | ​ | ​ | ​ | ​
(1) | On August 23, 2023, the Company announced a restructuring plan to optimize its polymethyl methacrylates (“PMMA”) sheet network, primarily in Europe, consolidate manufacturing operations and certain other workforce reductions to streamline its general & administrative network. The Asset Optimization and Corporate Restructuring plan includes closure of certain plants and product lines, including (i) closure of manufacturing operations at the Company’s PMMA cast sheets plant in Bronderslev, Denmark, (ii) closure of manufacturing operations at the Company’s batch polyester tray casting plant in Belen, New Mexico, and (iii) closure of its PMMA extruded sheet production line at its Rho, Italy plant.
On October 26, 2023, the management team of the Company, with authorization from the Company’s Board of Directors, approved additional actions to discontinue styrene production at the Company’s Terneuzen, the Netherlands plant, decommission the styrene plant assets, as well as related workforce reductions. During the three and six months ended June 30, 2024, the Company incurred employee termination benefit charges, net of $0.2 million and $0.7 million, respectively. The majority of these charges are expected to be paid through second quarter of 2025. During the three and six months ended June 30, 2024, the Company also incurred decommissioning and other charges of $2.6 million and $5.5 million, respectively, as well as contract termination charges of $3.0 million and $6.7 million, respectively. The Company expects to incur decommissioning and other charges of 9.0 million through the end of 2025.
(2) | Reflects certain employee termination benefit charges associated with streamlining internal general & administrative network. As these employee termination benefit charges were identified as a corporate-related activity, the charges related to this portion of the Asset Optimization and Corporate Restructuring plan were not allocated to a specific segment, but rather included within corporate unallocated.
(3) | In December 2022, the Company announced an asset restructuring plan designed to reduce costs, improve profitability, reduce exposure to cyclical markets and elevated natural gas prices, and address market overcapacity. The asset restructuring plan includes (i) closure of manufacturing operations at the styrene production facility in Boehlen, Germany, (ii) closure of one of its production lines at the Stade, Germany polycarbonate plant, and (iii) closure of the PMMA sheet manufacturing site in Matamoros, Mexico. The program is expected to be substantially completed by 2026.
In connection with this restructuring plan, during the three and six months ended June 30, 2024, the Company incurred employee termination benefit charges, net of $0.0 million and $(0.6) million, respectively, contract termination charges of $1.3 million and $3.1 million, respectively, and decommissioning and other charges of $0.2 million and $0.5 million, respectively. During the three and six months ended June 30, 2023, the Company incurred accelerated depreciation charges of $4.3 million and $8.3 million, respectively, employee termination benefit charges, net of $0.0 million and $(0.6) million, respectively, contract termination charges of $1.8 million and $4.3 million, respectively, and decommissioning and other charges of ($0.3) million and $1.5 million, respectively. The Company expects to incur incremental contract termination charges of $10.1 million, decommissioning and other charges of $0.3 million, as well as a limited amount of incremental employee termination benefit charges within the Plastics Solution segment, the majority of which is expected to be paid by the end of 2025.
(4) | In May 2021, the Company approved a transformational restructuring program associated with the Company’s strategic initiatives. The transformational restructuring program was completed as of December 31, 2023. As this was identified as a corporate-related activity, the charges related to this restructuring program were not allocated to a specific segment, but rather included within corporate unallocated.
(5) | As of January 2024, the Feedstocks segment was eliminated as a result of the closures of the styrene plants located in Boehlen, Germany and Terneuzen, the Netherlands under an asset restructuring plan. Prior period balances in this table have been reclassified to reflect the elimination of the Feedstocks reportable segment effective January 1, 2024. Asset Optimization charges relate to Terneuzen plant shutdown and Asset Restructuring Plan charges relate to the shutdown of Boehlen site. These charges were previously recognized under Feedstocks segment but will be allocated to Plastics Solutions segment starting January 1, 2024 and onward.
(6) | Prior period balances in this table have been reclassified to reflect the elimination of the Feedstocks reportable segment effective January 1, 2024. For the three months ended June 30, 2023, Latex Binders was allocated $0.7 million of accelerated depreciation, $0.3 million of contract termination costs, $0.1 million decommissioning and other charges; Plastics Solutions was allocated $0.9 million of accelerated depreciation, $0.4 million of contract termination costs, $0.1 million decommissioning and other charges; and Polystyrene was allocated $2.7 million of accelerated depreciation, $1.1 million of contract termination costs, $0.2 million decommissioning and other charges.
For the six months ended June 30, 2023, Latex Binders was allocated $0.9 million of accelerated depreciation, $0.7 million of contract termination costs, $0.2 million decommissioning and other charges; Plastics Solutions was allocated $1.1 million of accelerated depreciation, $0.9 million of contract termination costs, $0.1 million decommissioning and other charges; and Polystyrene was allocated $3.2 million of accelerated depreciation, $(0.2) million employee termination benefits, $2.7 million of contract termination costs, $0.6 million decommissioning and other charges.

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