Restructuring and Other Charges (Income)

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Restructuring and Other Charges (Income)

The following table shows total restructuring and other charges (income) included in the respective line items of the consolidated statements of income (loss):


	Year Ended December 31,
(in Millions)	2019		2018		2017
Restructuring charges	$	62.2	$	124.1	$	8.5
Other charges (income), net	108.8		(62.9)		64.7
Total restructuring and other charges (income)	$	171.0	$	61.2	$	73.2

Restructuring charges



(in Millions)	Severance and Employee Benefits		Other Charges (Income) ⁽¹⁾		Asset Disposal Charges ⁽²⁾		Total
DuPont Crop restructuring	$	9.1	$	5.2	$	12.1	$	26.4
Furadan® product exit	—		—		34.1		34.1
Other items	1.7		—		—		1.7
Year ended December 31, 2019	$	10.8	$	5.2	$	46.2	$	62.2
DuPont Crop restructuring	$	16.3	$	16.9	$	75.1	$	108.3
Other items	5.7		3.1		7.0		15.8
Year ended December 31, 2018	$	22.0	$	20.0	$	82.1	$	124.1

Other items	—		0.8		7.7		8.5
Year ended December 31, 2017	$	—	$	0.8	$	7.7	$	8.5

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(1)Primarily represents third-party costs associated with miscellaneous restructuring activities. Other income, if applicable, primarily represents favorable developments on previously recorded exit costs and recoveries associated with restructuring.

(2)Primarily represents asset write-offs (recoveries), and accelerated depreciation and impairment charges on long-lived assets, which were or are to be abandoned. To the extent incurred, the acceleration effect of re-estimating settlement dates and revised cost estimates associated with asset retirement obligations due to facility shutdowns, are also included within the asset disposal charges.

Furadan® Product Exit

During the fourth quarter of 2019, we decided to exit sales of all carbofuran formulations (including Furadan® insecticide/nematicide, Curaterr® insecticide/nematicide and any other brands used with carbofuran products) globally effective December 31, 2019. As a result of this decision, we accelerated the recognition of asset retirement obligations and asset write offs associated with the exit.

DuPont Crop Restructuring

On November 1, 2017, we completed the acquisition of the DuPont Crop Protection Business. See Note 5 for more details. As we continue to integrate the DuPont Crop Protection Business, we have started to, and continue to expect to, engage in various restructuring activities. These restructuring activities may include workforce reductions, relocation of current operating locations, lease and other contract termination costs and fixed asset accelerated depreciation as well as other asset disposal charges. We anticipate these restructuring activities will be substantially complete by the first half of 2020 as the majority of the integration will be completed. Details of key activities to date are as follows.

Subsequent to the acquisition, we conducted an in-depth analysis of key competitive capabilities of the combined business in India which resulted in a significant change to how we operate in the market and therefore a restructuring of our business in India. On July 3, 2018, we announced the adoption of an innovation-focused product strategy that uses a unique market access model anchored by our key, large scale distributors rather than the vast customer base we served prior to the DuPont Crop Protection Acquisition. Additionally, we rationalized our product portfolio and decisively exited a vast majority of the low margin product range. As a result of the change to our market access, we incurred charges of approximately $59 million for the year ended December 31, 2018, which primarily included the write-off of stranded accounts receivables and inventory. We also had workforce reductions which resulted in severance and other employee benefit charges of approximately $4 million for the year ended December 31, 2018.

As part of the acquisition, we acquired the Stine R&D facilities ("Stine") from DuPont. Due to its proximity to our previously existing Ewing R&D center ("Ewing"), in March 2018, we decided to migrate our Ewing R&D activities and employees into the newly acquired Stine facilities. As a result of this decision we incurred charges of approximately $28 million. We accelerated the depreciation of certain fixed assets that will no longer be used due to our exit from the facility and incurred charges of $17.4 million of accelerated depreciation charges for the year ended December 31, 2018. The cease use criteria was met as of September 30, 2018 as all employees had exited the Ewing facility and the facility became available for use. We recorded the estimated future liability associated with the rental obligation on the cease use date which resulted in a charge of $11.2 million for the year ended December 31, 2018. This charge was offset by the reduction of the capital lease liability previously recorded in "Other long-term liabilities" of $6.0 million. In addition to lease termination costs, we incurred

severance, relocation and other employee related charges of $5.2 million for the year ended December 31, 2018. For the year ended December 31, 2019 we incurred additional severance, relocation and other employee related charges of $9.1 million.

Roll forward of restructuring reserves

The following table shows a roll forward of restructuring reserves that will result in cash spending. These amounts exclude asset retirement obligations.


(in Millions)	Balance at 12/31/17		Change in reserves ⁽³⁾		Cash payments		Other⁽⁴⁾		Balance at 12/31/18 ⁽⁵⁾		Change in reserves ⁽³⁾		Cash payments		Other⁽⁴⁾		Balance at 12/31/19 ⁽⁵⁾
DuPont Crop restructuring ⁽¹⁾	$	—	$	33.2	$	(15.8)	$	(1.2)	$	16.2	$	14.3	$	(15.9)	$	(0.1)	$	14.5

Cheminova restructuring	1.2		—		(1.2)		—		—		—		—		—		—
Other workforce related and facility shutdowns ⁽²⁾	2.3		8.8		(8.2)		(1.9)		1.0		1.7		(2.7)		0.1		0.1

Total	$	3.5	$	42.0	$	(25.2)	$	(3.1)	$	17.2	$	16.0	$	(18.6)	$	—	$	14.6

____________________

(1)Primarily consists of real estate exit costs and severance associated with DuPont Crop restructuring activities.

(2)Primarily severance costs related to workforce reductions and facility shutdowns described in the Other items section or the Restructuring charges table above.

(3)Primarily severance, exited lease, contract termination and other miscellaneous exit costs. The accelerated depreciation and impairment charges noted above impacted our property, plant and equipment or intangible balances and are not included in this table.

(4)Primarily foreign currency translation adjustments.

(5)Included in “Accrued and other liabilities” and "Other long-term liabilities" on the consolidated balance sheets.

Other charges (income), net


	Year Ended December 31,
(in Millions)	2019		2018		2017
Environmental charges, net	$	108.7	$	21.7	$	16.2
Product portfolio sales	0.1		(87.2)		—
Impairment of intangibles	—		—		42.1


Other items, net	—		2.6		6.4
Other charges (income), net	$	108.8	$	(62.9)	$	64.7

Environmental charges, net

Environmental charges represent the net charges associated with environmental remediation at continuing operating sites. Environmental obligations for continuing operations primarily represent obligations at shut down or abandoned facilities within businesses that do not meet the criteria for presentation as discontinued operations. During the fourth quarter of 2019, we recorded a charge of $72.8 million as a result of an unfavorable court ruling we received in relation to the Pocatello Tribal Litigation at one of our environmental sites. See Note 12 for further information regarding this matter.

Product portfolio sales

On February 1, 2018, we sold a portion of our European herbicide portfolio to Nufarm Limited. Additionally, on August 16, 2018, we completed the sale of certain products of our India portfolio to Crystal Crop Protection Limited. Both sales were required by regulatory authorities as part of closing conditions for the DuPont Crop Protection Business Acquisition. The gain on these sales are recorded within "Restructuring and other charges (income)" on the consolidated statements of income (loss). Proceeds from these sales are included in investing activities on the consolidated statements of cash flows.

Impairment of intangibles

In 2017, we recorded an impairment charge on certain acquired indefinite-lived intangible assets from the DuPont Crop Protection Business Acquisition solely as a result of the United States' enactment of the Act.

Other items, net

In 2018, other items, net primarily represents a milestone payment on an agreement related to our in-process research and development. Other items, net also includes the loss associated with the divestment of a joint venture.

In 2017, other items, net primarily relates to exit costs resulting from the termination and de-consolidation of our interest in a variable interest entity that was previously consolidated.