Restructuring and Impairment Charges

6 Months Ended

Jun. 30, 2022

Restructuring and Impairment Charges

Restructuring and Impairment Charges

5. Restructuring and Impairment Charges

For the three and six months ended June 30, 2022, Ingredion recorded $2 million and $4 million of pre-tax restructuring-related charges, respectively. For the three and six months ended June 30, 2021, Ingredion recorded $4 million and $374 million of pre-tax restructuring and impairment charges, respectively.

Restructuring Charges

For the three months ended June 30, 2022, we recorded $2 million of pre-tax restructuring related charges, which were costs primarily associated with our Cost Smart selling, general and administrative expense (“SG&A”) program. For the six months ended June 30, 2022, we recorded $4 million of pre-tax restructuring-related charges, which included $3 million of costs associated with our Cost Smart SG&A program and $1 million of costs as part of our Cost Smart Cost of sales program.

For the three months ended June 30, 2021, we recorded $4 million of pre-tax net restructuring-related charges. These costs included $4 million of pre-tax restructuring-related charges associated with our Cost Smart SG&A program and $5 million of pre-tax restructuring-related charges as part of our Cost Smart Cost of sales program. The Cost Smart Cost of sales charges were offset by a $5 million gain on the sale of the Stockton, California land and building.

For the six months ended June 30, 2021, we recorded $14 million of pre-tax net restructuring-related charges, consisting of $9 million of costs associated with our Cost Smart SG&A program and $8 million of costs associated with our Cost Smart Cost of sales program. The Cost Smart Cost of sales charges were partly offset by a $5 million gain on the sale of the Stockton, California land and building. Ingredion also recorded $2 million of restructuring charges related to the Amyris joint venture transaction described in Note 4 during the six months ended June 30, 2021.

A summary of Ingredion’s severance accrual at June 30, 2022, which we expect to fully pay in 2022, is as follows (in millions):

Balance in severance accrual as of December 31, 2021	$	3
Payments made to terminated employees		(2)
Balance in severance accrual as of June 30, 2022	$	1

Impairment Charges

At the announcement of our agreement to invest in the Argentina joint venture during the three months ended March 31, 2021, we reclassified assets and liabilities we expected to contribute to the joint venture as held for sale in Other assets in the Condensed Consolidated Balance Sheets and recorded an impairment charge of $360 million based on our preliminary estimates of their fair value. Of the $360 million impairment charge for the net assets contributed to the Argentina joint venture during the three months ended March 31, 2021, $311 million was related to the write-off of the cumulative translation losses associated with the contributed net assets and $49 million was related to the write-down of the contributed net assets.