Restructuring and Other Charges, Net

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

RESTRUCTURING AND OTHER CHARGES

Restructuring and other charges primarily consist of separation costs for employees including severance, outplacement and other employee benefit costs (“Severance”), charges related to the write-down of fixed assets of plants to be closed (“Fixed asset write-down”) and all other related restructuring (“Other”) costs. All restructuring and other charges are separately stated on the Consolidated Statements of Income and Comprehensive Income (Loss).

Frutarom Integration Initiative

In connection with the acquisition of Frutarom, the Company executed an integration plan that, among other initiatives, sought to optimize its manufacturing network (the “Frutarom Integration Initiative”). Since the inception of the initiative through March 31, 2023, the Company closed 22 sites and expensed total costs of approximately $36 million. As of March 31, 2023, the Frutarom Integration Initiative was completed.

N&B Merger Restructuring Liability

For the six months ended June 30, 2023, the Company had approximately $1 million of reversal to charges related to severance. Since the inception of the restructuring activities, there have been a total of approximately 215 headcount reductions and the Company has expensed approximately $44 million.

2023 Restructuring Program

In December 2022, the Company announced a restructuring program mainly related to headcount reduction to improve its organizational and operating structure, drive efficiencies and achieve cost savings. For the six months ended June 30, 2023, the Company incurred approximately $64 million of charges related to severance and there have been a total of approximately 630 actual and planned headcount reductions. The Company expects to incur a majority of the costs for the 2023 Restructuring Program in the current year.

Changes in Restructuring Liabilities

Changes in restructuring liabilities during the six months ended June 30, 2023 were as follows:


(DOLLARS IN MILLIONS)	Balance at December 31, 2022		Additional Charges (Reversals), Net		Cash Payments		Balance at June 30, 2023




Frutarom Integration Initiative
Severance	$	4	$	(3)	$	(1)	$	—






Other Restructuring Charges
Severance	1		(1)		—		—


N&B Merger Restructuring Liability
Severance	9		(1)		(7)		1

Other	1		—		(1)		—
2023 Restructuring Program
Severance	—		64		(26)		38
Total Restructuring and other charges	$	15	$	59	$	(35)	$	39

Restructuring liabilities are presented in “Other current liabilities” on the Consolidated Balance Sheets.

Charges by Segment

The following table summarizes the total amount of costs incurred in connection with these restructuring programs and activities by segment:


	Three Months Ended June 30,				Six Months Ended June 30,
(DOLLARS IN MILLIONS)	2023		2022		2023		2022
Nourish	$	2	$	1	$	32	$	3
Health & Biosciences	1		1		11		1
Scent	4		5		14		5
Pharma Solutions	—		—		2		—

Total Restructuring and other charges	$	7	$	7	$	59	$	9