Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Tables)

6 Months Ended

Jun. 30, 2024

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

The components of costs incurred in connection with restructuring initiatives, acquisitions and divestitures are as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(MILLIONS OF DOLLARS)	2024		2023		2024		2023
Restructuring charges and certain acquisition and divestiture-related costs:
Acquisition-related costs	$	1	$	3	$	1	$	4
Divestiture-related costs(a)	4		—		4		—
Restructuring charges, net(b):
Employee termination costs, net	37		5		41		25
Total Restructuring charges and certain acquisition and divestiture-related costs	$	42	$	8	$	46	$	29

(a)    Divestiture-related costs consisted of costs related to the planned sale of our medicated feed additive product portfolio, certain water soluble products and related assets.

(b) The restructuring charges for the three and six months ended June 30, 2024 primarily consisted of employee termination costs related to organizational structure refinements. Restructuring charges for the six months ended June 30, 2024 were partially offset by a reversal of certain employee termination costs as a result of a change in strategy from our 2015 operational efficiency initiative.

The restructuring charges for the three and six months ended June 30, 2023 primarily consisted of employee termination costs related to organizational structure refinements.

The change in our restructuring accrual is as follows:

(MILLIONS OF DOLLARS)	Accrual
Balance, December 31, 2023(a)	$	35
Provision	48
Reserve adjustment	(7)
Utilization and other(b)	(21)
Balance, June 30, 2024(a)	$	55

(a)     At June 30, 2024 and December 31, 2023, included in Accrued expenses ($53 million and $26 million, respectively) and Other noncurrent liabilities ($2 million and $9 million, respectively).

(b)     Includes adjustments for foreign currency translation.