RESTRUCTURING ACTIVITIES

6 Months Ended

Jun. 30, 2025

RESTRUCTURING ACTIVITIES

RESTRUCTURING ACTIVITIES

NOTE 4—RESTRUCTURING ACTIVITIES

Refer to the Annual Report for further details regarding the Company’s previously announced restructuring activities included in the tables below. Restructuring charges are included within “Selling, general and administrative expenses” in the condensed consolidated statements of operations.

2024 Restructuring Plan and Stade Shutdown

On September 26, 2024, the Board of Directors of the Company approved a restructuring plan (“2024 Restructuring Plan”) designed to reduce costs by streamlining commercial and operational activities and to further improve profitability and better position the Company for longer term growth and cash flow generation. The 2024 Restructuring Plan included: (i) combining the management of Engineered Materials, Plastics Solutions and Polystyrene businesses, (ii) a reduction in workforce of supporting functions, and (iii) the exit of virgin polycarbonate production at its Stade, Germany production facility. On November 13, 2024, the Company announced its decision to exit its Stade, Germany polycarbonate plant (“Stade Shutdown”).

The Company recorded net pre-tax restructuring charges of $60.4 million inception-to-date under the 2024 Restructuring Plan and Stade Shutdown, consisting of $24.6 million of severance and related benefit costs, $27.9 million of asset related charges, and $7.9 million of contract terminations. Asset-related charges include $19.9 million related to the accelerated depreciation for the asset retirement cost and $5.6 million in accelerated depreciation charges of plant, property and equipment associated with the exit of the Company’s Stade, Germany plant and other charges of $2.4 million.

The Company expects to incur incremental contract terminations of $17.0 million to $19.0 million and asset related charges of $1.9 million within the Polymer Solutions segment. The majority of charges related to the 2024 Restructuring Plan and Stade Shutdown are expected to be paid by the end of 2027. The following table summarizes the charges (credits) incurred by segment related to the 2024 Restructuring Plan and Stade Shutdown:


		Three Months Ended			Six Months Ended
2024 Restructuring Plan and Stade Shutdown Charges (Credits) by Segment		June 30, 2025			June 30, 2025
Engineered Materials		$	0.1		$	(0.2)
Latex Binders			—			—
Polymer Solutions			6.0			8.6
Corporate ⁽¹⁾			(0.1)			—
Total		$	6.0		$	8.4

(1)	The charges related to this restructuring plan that were not allocated to a specific segment were included within Corporate as unallocated charges.

The following table is a summary of charges (credits) incurred related to the 2024 Restructuring Plan and Stade Shutdown:


		Three Months Ended			Six Months Ended
2024 Restructuring Plan and Stade Shutdown Charges (Credits)		June 30, 2025			June 30, 2025
Severance and related benefit costs		$	0.5		$	(0.1)
Asset related charges (credits)			0.5			1.5
Contract terminations			5.0			7.0
Total		$	6.0		$	8.4

The following table summarizes the activities related to the 2024 Restructuring Plan and Stade Shutdown:


2024 Restructuring Plan and Stade Shutdown		Severance and Related Benefit Cost			Asset Related Charges ⁽²⁾			Contract Terminations			Total
Reserve balance at December 31, 2024		$	20.9		$	—		$	0.9		$	21.8
Restructuring charges (credits)			(0.1)			0.4			7.0			7.3
Payments ⁽¹⁾			(3.8)			—			(6.9)			(10.7)
Asset write-offs			—			(0.4)			—			(0.4)
Reserve balance at June 30, 2025		$	17.0		$	—		$	1.0		$	18.0

(1)	Includes immaterial impacts of foreign currency remeasurement.

(2)

Excludes $0.5 million and $1.1 million, respectively, of accretion expense incurred during the three and six months ended June 30, 2025 related to the asset retirement obligation liability at Stade, Germany. Refer to Note 13 for further information on the asset retirement obligation activity at Stade, Germany.

Asset Optimization and Corporate Restructuring

On August 23, 2023, the Company announced a restructuring plan (“Asset Optimization and Corporate Restructuring plan”) to optimize its PMMA sheet network, primarily in Europe, consolidate manufacturing operations and certain other workforce reductions to streamline its general & administrative network. The Asset Optimization and Corporate Restructuring plan includes closure of certain plants and product lines. On October 26, 2023, the Company approved additional actions.

The Company recorded net pre-tax restructuring charges of $80.5 million inception-to-date under the Asset Optimization and Corporate Restructuring plan, consisting of $17.2 million of severance and related benefit costs, $54.1 million of asset related charges, and $9.2 million of contract terminations costs. Asset-related charges include $32.5 million of accelerated depreciation charges of plant, property and equipment, and decommissioning and other charges of $21.6 million associated with the plant and production closures. The Company expects to incur an incremental $1.1

million of asset related charges through the end of 2025 and $1.1 million of demolition costs in 2026. The majority of the employee termination benefit charges are expected to be paid by the end of 2026.

The following table summarizes the charges (credits) incurred by segment related to the Asset Optimization and Corporate Restructuring plan:


		Three Months Ended						Six Months Ended
		June 30,						June 30,
Asset Optimization and Corporate Restructuring Plan Charges (Credits) by Segment		2025			2024			2025			2024
Engineered Materials		$	—		$	0.3		$	0.1		$	1.4
Polymer Solutions			4.1			5.4			6.5			10.2
Corporate ⁽¹⁾			—			0.1			(0.1)			1.3
Total		$	4.1		$	5.8		$	6.5		$	12.9

(1)	The charges (credits) related to this restructuring plan that were not allocated to a specific segment were included within Corporate as unallocated charges.

The following table is a summary of charges (credits) incurred related to the Asset Optimization and Corporate Restructuring plan:


		Three Months Ended						Six Months Ended
		June 30,						June 30,
Asset Optimization and Corporate Restructuring Plan Charges (Credits)		2025			2024			2025			2024
Severance and related benefit costs		$	0.6		$	0.2		$	1.0		$	0.7
Asset related charges (credits)			3.5			2.6			5.5			5.5
Contract terminations			—			3.0			—			6.7
Total		$	4.1		$	5.8		$	6.5		$	12.9

The following table summarizes the activities related to the Asset Optimization and Corporate Restructuring plan:


Asset Optimization and Corporate Restructuring Plan		Severance and Related Benefit Cost			Asset Related Charges			Contract Terminations			Total
Reserve balance at December 31, 2024		$	4.7		$	—		$	—		$	4.7
Restructuring charges			1.0			5.5			—			6.5
Payments ⁽¹⁾			(3.9)			(3.5)			—			(7.4)
Asset write-offs			—			(2.0)			—			(2.0)
Reserve balance at June 30, 2025		$	1.8		$	—		$	—		$	1.8

(1)	Includes immaterial impacts of foreign currency remeasurement.

Asset Restructuring Plan

In December 2022, the Company announced an Asset Restructuring Plan”) that included the closure of certain uncompetitive plants and product lines, including, among other sites, the closure of manufacturing operations at the styrene production facility in Boehlen, Germany.

The Company recorded net pre-tax restructuring charges of $55.8 million inception-to-date under the Asset Restructuring Plan, consisting of $8.7 million of severance and related benefit costs, $35.2 million of asset related charges, and $11.8 million of contract terminations costs. Asset-related charges include $19.2 million related to the accelerated depreciation for the asset retirement cost at Boehlen, Germany, $7.7 million in accelerated depreciation charges of plant, property and equipment and decommissioning and other charges of $8.3 million.

The Company expects to incur an incremental $5.5 million primarily related to contract termination charges within the Polymer Solutions segment through 2026.

The following table summarizes the charges (credits) incurred by segment related to the Asset Restructuring Plan:


		Three Months Ended						Six Months Ended
		June 30,						June 30,
Asset Restructuring Plan Charges (Credits) by Segment		2025			2024			2025			2024
Engineered Materials		$	—		$	—		$	(0.3)		$	—
Polymer Solutions			0.7			1.5			(6.8)			3.0
Total		$	0.7		$	1.5		$	(7.1)		$	3.0

The following table is a summary of charges (credits) incurred related to the Asset Restructuring Plan:


		Three Months Ended						Six Months Ended
		June 30,						June 30,
Asset Restructuring Plan Charges (Credits)		2025			2024			2025			2024
Severance and related benefit costs		$	—		$	—		$	(0.3)		$	(0.6)
Asset related charges (credits) ⁽¹⁾			—			0.2			(8.1)			0.5
Contract terminations			0.7			1.3			1.3			3.1
Total		$	0.7		$	1.5		$	(7.1)		$	3.0

(1)

Asset related charges (credits) include activities related to an asset retirement obligation at Boehlen, Germany. For the six months ended June 30, 2025, the Company recorded a credit of $(8.1) million reflecting a change in cost estimate related to the asset retirement obligation as the Company was able to realize efficiencies during the initial phase of site demolition.

The following table summarizes the activities related to the Asset Restructuring Plan:


Asset Restructuring Plan		Severance and Related Benefit Cost			Asset Related Charges ⁽²⁾			Contract Terminations			Total
Reserve balance at December 31, 2024		$	1.2		$	—		$	—		$	1.2
Restructuring charges			(0.3)			—			1.3			1.0
Payments ⁽¹⁾			(0.5)			—			(1.3)			(1.8)
Reserve balance at June 30, 2025		$	0.4		$	—		$	—		$	0.4

(1)	Includes immaterial impacts of foreign currency remeasurement.

(2)	Excludes $(8.1) million related to a change in estimate for the Boehlen, Germany asset retirement obligation incurred during the six months ended June 30, 2025. Refer to Note 13 for further information on the asset retirement obligation activity at Boehlen, Germany.