Ingredion Reports Exit Costs and Impairments

Ticker: INGR · Form: 8-K · Filed: 2025-01-06T00:00:00.000Z

Sentiment: neutral

Topics: impairment, restructuring, exit-costs

Related Tickers: INGR

TL;DR

Ingredion booked significant exit costs and impairments as of year-end 2024.

AI Summary

Ingredion Incorporated filed an 8-K on January 6, 2025, reporting on material impairments and costs associated with exit or disposal activities as of December 31, 2024. The filing details financial events impacting the company's fiscal year end.

Why It Matters

This filing indicates potential restructuring or asset write-downs, which could impact Ingredion's future financial performance and profitability.

Risk Assessment

Risk Level: medium — Material impairments and exit costs can signal underlying business challenges or strategic shifts that may affect future earnings.

Key Players & Entities

FAQ

What specific assets or operations are subject to the material impairments reported?

The filing does not specify the exact assets or operations subject to material impairments, only that such events occurred as of December 31, 2024.

What is the nature of the 'costs associated with exit or disposal activities'?

The filing does not provide specific details on the nature of these costs, but they are related to the company's exit or disposal of certain activities.

When did these exit or disposal activities commence or become probable?

The filing reports these costs as of December 31, 2024, indicating the reporting period for these events.

Are these impairments and exit costs expected to have a material impact on Ingredion's financial statements?

Yes, the filing is an 8-K, which is typically used to report material events, and the items listed (material impairments and exit costs) are inherently significant.

Does this filing indicate any changes in Ingredion's business strategy?

While not explicitly stated, material impairments and exit/disposal costs often suggest a strategic shift or a re-evaluation of certain business segments.

Filing Stats: 983 words · 4 min read · ~3 pages · Grade level 15.1 · Accepted 2025-01-06 06:24:45

Key Financial Figures

Filing Documents

05 Costs Associated with Exit or Disposal Activities

Item 2.05 Costs Associated with Exit or Disposal Activities. On December 31, 2024, Ingredion Incorporated (the "Company") committed to a plan to cease operations at its plant protein concentrates and flour manufacturing facility in Vanscoy, Saskatchewan, Canada (the "Vanscoy manufacturing facility") as of January 6, 2025. The decision to cease operations of the Vanscoy manufacturing facility was made after a strategic review of this business. Approximately twenty employees work at the facility. The Company expects to sell the manufacturing facility and the underlying real property but has not entered into a contract of sale as of the date of this report. The Company expects to incur pre-tax non-recurring charges of approximately $66 million under the plan, of which approximately $65 million is expected to be impairment charges relating to fixed asset and inventory write-downs and approximately $1 million is expected to be cash expenditures, including employee-related costs, severance and other termination-related costs. The Company expects to incur the majority of these charges in the fourth quarter of 2024 and the remaining charges in subsequent fiscal periods through the fourth quarter of fiscal 2025. The foregoing estimates of the charges the Company expects to incur under the plan are subject to assumptions, and actual charges may differ from such estimates.

06 Material Impairments

Item 2.06 Material Impairments. The information set forth in Item 2.05 is incorporated by reference in this Item 2.06. In connection with the cessation of operations at the Vanscoy manufacturing facility, the Company expects to incur approximately $65 million in pre-tax, non-cash asset impairment charges in the fourth quarter of 2024.

Forward-Looking Statements

Forward-Looking Statements This current report on Form 8-K contains or may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Ingredion Incorporated intends these forward-looking statements to be covered by the safe harbor provisions for such statements. Forward-looking statements include, among others, any statements regarding the potential costs associated with the cessation of operations at the Vanscoy manufacturing facility, our prospects, future operations, or future financial condition, earnings, net sales, tax rates, capital expenditures, cash flows, expenses or other financial items, including management's plans or strategies and objectives for any of the foregoing and any assumptions, expectations or beliefs underlying any of the foregoing. These statements can sometimes be identified by the use of forward-looking words such as "may," "will," "should," "anticipate," "assume," "believe," "plan," "project," "estimate," "expect," "intend," "continue," "pro forma," "forecast," "outlook," "propels," "opportunities," "potential," "provisional," or other similar expressions or the negative thereof. All statements other than statements of historical facts therein are "forward-looking statements." These statements are based on current circumstances or expectations, but are subject to certain inherent risks and uncertainties, many of which are difficult to predict and beyond our control. Although we believe our expectations reflected in these forward-looking statements are based on reasonable assumptions, investors are cautioned that no assurance can be given that our expectations will prove correct. Our forward-looking statements speak only as of the date on which they are made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the stat

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. INGREDION INCORPORATED Date: January 6, 2025 By: /s/ Tanya M. Jaeger de Foras Tanya M. Jaeger de Foras Senior Vice President, Chief Legal Officer, Corporate Secretary and Chief Compliance Officer

View on Read The Filing