Company: NGVT
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001653477-25-000091
Chunk: 33

Company: Ingevity Corp
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 the Condensed Consolidated Financial StatementsMarch 31, 2025(Unaudited)

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 three months ended March 31, 2025 and 2024, we incurred charges of zero and $0.5 million, respectively. Restructuring and Other (Income) Charges, net Reserves The following table shows a roll forward of restructuring reserves that will result in cash spending, the majority of which relate to the Performance Chemicals repositioning.Balance atChange inCashBalance atIn millions12/31/2024 (1)Reserve (2)PaymentsOther (3)3/31/2025 (1)Severance and other employee-related costs$4.2 0.8 (2.6)— $2.4 Other charges (income)0.9 11.5 (9.0)— 3.4 Restructuring 5.1 12.3 (11.6)— 5.8 Other (income) charges, net— — — — — Restructuring and Other (income) charges, net reserves$5.1 12.3 (11.6)— $5.8 _______________(1) Included in "Accrued expenses" on the condensed consolidated balance sheets. (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.(3) Primarily foreign currency translation adjustments.

Note 12: Income Taxes

The effective tax rates, including discrete items, were as follows:Three Months Ended March 31,20252024Effective tax rate23.5 %22.1 %We determine our interim tax provision using an Estimated Annual Effective Tax Rate methodology (“EAETR”). The EAETR is applied to the year-to-date ordinary income, exclusive of discrete items. The tax effects of discrete items are then included to arrive at the total reported interim tax provision.The determination of the EA