Company: NGVT
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001653477-25-000091
Chunk: 80

Company: Ingevity Corp
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 80
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 millionsSeverance and other employee-related costsOther charges (income) (1)Asset disposal charges (2)TotalPerformance Chemicals repositioning$— $11.2 $(0.1)$11.1 Other (3)0.8 0.3 0.1 1.2 Three Months Ended March 31, 2025$0.8 $11.5 $— $12.3 Performance Chemicals repositioning$2.1 $5.2 $55.0 $62.3 Three Months Ended March 31, 2024$2.1 $5.2 $55.0 $62.3 _______________(1) Primarily represents costs associated with contract terminations, plant and equipment decommissioning charges and other miscellaneous exit costs. (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 2024, we took further steps to streamline our cost structure and improve profitability, resulting in additional restructuring charges for the quarter ended March 31, 2025 of $1.2 million, including $0.1 million in asset disposal charges, $0.8 million in severance and other employee-related costs, and $0.3 million in other charges.Performance Chemicals RepositioningOn 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 historical annualized net sales. The repositioning included the closure of the Performance Chemicals CTO refinery and manufacturing plant located in DeRidder, Louisiana (the “De