Annual report pursuant to Section 13 and 15(d)

ACCELERA STRATEGIC REORGANIZATION ACTIONS

v3.25.0.1
ACCELERA STRATEGIC REORGANIZATION ACTIONS
 12 Months Ended
Dec. 31, 2024
Restructuring and Related Activities [Abstract]  
Accelera Strategic Reorganization Activities
NOTE 22. ACCELERA STRATEGIC REORGANIZATION ACTIONS
In the fourth quarter of 2024, our Accelera segment underwent a strategic review to better streamline operations as well as pace and re-focus investments on the most promising paths as the adoption of certain zero emission solutions slows. This review resulted in decisions to consolidate certain manufacturing efforts, focus internal development efforts towards areas of differentiation while continuing to leverage partners and reduce our investments in certain technologies, joint ventures and markets. In addition, declining customer demand in certain key product lines caused us to re-evaluate the recoverability of certain inventory items. As a result of these actions, we recorded several non-cash charges in the fourth quarter related to inventory write-downs, intangible and fixed asset impairments and joint venture impairments. We also recorded severance of approximately $7 million. The following table presents the impact of asset write-downs and impairments on our Consolidated Statements of Net Income:

Year ended
In millions December 31,
2024		 Statement of Net Income Location
Inventory write-downs $ 107  Cost of sales
Impairment of other intangible assets 84 Other operating expense, net
Impairment of property, plant and equipment 61 Other operating expense, net
Impairment of investments in equity method investees 17 Equity, royalty and interest income from investees
Severance 7 Cost of sales and research, development and engineering expenses
Other 36 Other operating expense, net and selling, general and administrative expenses
Total $ 312 

The majority of the $305 million non-cash charge is reflected in net cash provided by operating activities, as a change in inventory of $107 million and other, net of $171 million. Of the total charges, approximately $243 million occurred in jurisdictions where we receive no tax benefits because of valuation allowances, resulting in a $50 million unfavorable discrete tax item. In addition, these actions were considered a triggering event under GAAP which required us to perform an interim impairment test of our fuel cell and electrolyzer reporting unit. The results of this testing indicated that goodwill of this reporting unit was not impaired.