13. RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS

As of  December 31, 2025, 2024 and 2023, accrued restructuring and plant closing costs by type of cost consisted of the following (dollars in millions): 

As of December 31, 2025, 2024 and 2023, accrued restructuring and plant closing costs of our three operating segments as well as Corporate and other consisted of the following (dollars in millions):

Details with respect to cash and noncash restructuring, impairment and plant closing costs from continuing operations for the years ended December 31, 2025, 2024 and 2023 are provided below (dollars in millions):

RESTRUCTURING ACTIVITIES

Beginning in the second quarter of 2025, our Performance Products segment implemented a restructuring program to close its European maleic anhydride manufacturing facility in Moers, Germany and to reduce other organizational structure costs. During the third quarter of 2025, this program was further expanded for additional site closure costs. In connection with this restructuring program, we recorded net restructuring expense of approximately $97 million for the year ended December 31, 2025, primarily related to workforce reductions, contract terminations and approximately $88 million for the impairment of assets and site closure costs, including approximately $14 million of goodwill impairment, related to the closure of the facility. We expect to record further restructuring expenses of approximately $2 million through the first half of 2026, primarily related to a site closure.

Beginning in the fourth quarter of 2024, our Polyurethanes segment implemented a restructuring program to reduce organizational structure costs. During the second quarter of 2025, this program was further expanded to optimize its European business organization. In connection with this restructuring program, we recorded net restructuring expense of approximately $51 million for the year ended December 31, 2025, primarily related to workforce reductions, accelerated depreciation and site closures, and we recorded net restructuring expense of approximately $20 million for the year ended December 31, 2024, primarily related to workforce reductions. We expect to record further restructuring expenses of approximately $6 million through 2027, primarily related to site closures, workforce reductions and accelerated depreciation.

Beginning in the first quarter of 2024, our Advanced Materials segment implemented a restructuring program to optimize the segment’s manufacturing processes and cost structure in the U.S. to better align with future market opportunities. In connection with this restructuring program, we recorded net restructuring expense of approximately $1 million and $13 million for the years ended December 31, 2025 and 2024, respectively, primarily related to accelerated depreciation and workforce reductions. We expect to record further restructuring expenses of approximately $5 million through 2027, primarily related to accelerated depreciation and workforce reductions.

Beginning in the fourth quarter of 2022, we implemented a restructuring program to further realign our cost structure with additional restructuring in Europe. This program was associated with all of our segments and included exiting and consolidating certain facilities, workforce relocation to lower cost locations and further personnel rationalization. In connection with this restructuring program, we recorded a net credit of approximately $2 million for the year ended December 31, 2025 to adjust the restructuring reserve that was no longer required. For the year ended December 31, 2024, we recorded net restructuring expense of approximately $4 million, primarily related to site closures, and for the year ended December 31, 2023, we recorded net restructuring expense of approximately $9 million, primarily related to workforce reductions and accelerated depreciation, partially offset by adjustments to restructuring reserves that were no longer required for certain workforce reductions. 

Beginning in the first quarter of 2021, our Corporate function implemented a restructuring program to optimize our global approach to leveraging shared services capabilities. During the second quarter of 2022, this program was further expanded to include additional geographies. During the year ended December 31, 2023, we evaluated the then current developments of this program and related anticipated cash costs, and we recorded a net restructuring credit of approximately $6 million for the year ended December 31, 2023, primarily to adjust restructuring reserves that were no longer required for certain workforce reductions.

Beginning in the third quarter of 2020, our Polyurethanes segment implemented a restructuring program to optimize its downstream footprint. During the second quarter of 2022, this optimization program was further expanded to include the entire Polyurethanes business. In connection with this restructuring program, we recorded net restructuring expense of approximately $4 million for the year ended December 31, 2023, primarily related to workforce reductions. 

Beginning in the second quarter of 2020, our Advanced Materials segment implemented restructuring programs in connection with our 2020 acquisition of CVC Thermoset Specialties, the alignment of the segment’s commercial organization and optimization of the segment’s manufacturing processes. In connection with these restructuring programs, we recorded net restructuring expense of approximately $4 million for the year ended December 31, 2023, primarily related to a site closure and accelerated depreciation.