Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS (Tables)

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RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS (Tables)
 6 Months Ended
Jun. 30, 2014
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS  
Accrued restructuring costs by type of cost and initiative

As of June 30, 2014 and December 31, 2013, accrued restructuring costs by type of cost and initiative consisted of the following (dollars in millions):

 
   Workforce
reductions(1)		   Demolition and
decommissioning		   Non-cancelable
lease and
contract
termination
costs		   Other
restructuring
costs		   Total(2)  

Accrued liabilities as of January 1, 2014

   $ 52   $ —   $ 60   $ 1   $ 113  

2014 charges for 2013 and prior initiatives

     38     4     3     6     51  

2014 charges for 2014 initiatives

     6     —     —     —     6  

Reversal of reserves no longer required

     (7 )   —     —     (1 )   (8 )

2014 payments for 2013 and prior initiatives

     (30 )   (4 )   (3 )   (6 )   (43 )

Foreign currency effect on liability balance

     —     —     (1 )   —     (1 )
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Accrued liabilities as of June 30, 2014

   $ 59   $ —   $ 59   $ —   $ 118  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       
(1)
The workforce reduction reserves relate to the termination of 646 positions, of which 507 positions had not been terminated as of June 30, 2014.

(2)
Accrued liabilities by initiatives were as follows (dollars in millions):

 
   June 30,
2014		   December 31,
2013		  

2012 and prior initiatives

   $ 75   $ 95  

2013 initiatives

     37     18  

2014 initiatives

     6     —  
           
​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 118   $ 113  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           
Accrued liabilities by initiative
Accrued liabilities by initiatives were as follows (dollars in millions):

 
   June 30,
2014		   December 31,
2013		  

2012 and prior initiatives

   $ 75   $ 95  

2013 initiatives

     37     18  

2014 initiatives

     6     —  
           
​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 118   $ 113  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           
Details with respect to reserves for restructuring, impairment and plant closing costs, provided by segment and initiative

Details with respect to our reserves for restructuring, impairment and plant closing costs are provided below by segment and initiative (dollars in millions):

 
   Polyurethanes   Performance
Products		   Advanced
Materials		   Textile
Effects		   Pigments   Discontinued
Operations		   Corporate
and Other		   Total  

Accrued liabilities as of January 1, 2014

   $ 9   $ 10   $ 12   $ 68   $ 2   $ 3   $ 9   $ 113  

2014 charges for 2013 and prior initiatives

     —     23     9     10     3     —     6     51  

2014 charges for 2014 initiatives

     —     —     —     5     —     —     1     6  

Reversal of reserves no longer required

     —     (1 )   (4 )   (2 )   —     —     (1 )   (8 )

2014 payments for 2013 and prior initiatives

     (2 )   (3 )   (12 )   (16 )   (3 )   —     (7 )   (43 )

Foreign currency effect on liability balance

     —     —     —     —     (1 )   —     —     (1 )
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Accrued liabilities as of June 30, 2014

   $ 7   $ 29   $ 5   $ 65   $ 1   $ 3   $ 8   $ 118  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Current portion of restructuring reserves

   $ 3   $ 29   $ 3   $ 9   $ 1   $ 3   $ 8   $ 56  

Long-term portion of restructuring reserves

     4     —     2     56     —     —     —     62  
Cash and noncash restructuring charges by initiative

Details with respect to cash and noncash restructuring charges for the six months ended June 30, 2014 and 2013 by initiative are provided below (dollars in millions):

 
   Three months
ended
June 30, 2014		   Six months
ended
June 30, 2014		  

Cash charges:

              

2014 charges for 2013 and prior initiatives

   $ 10   $ 51  

2014 charges for 2014 initiatives

     6     6  

Pension related charges

     1     2  

Reversal of reserves no longer required

     (4 )   (8 )

Non-cash charges

     —     1  
           
​ ​ ​ ​ ​ ​ ​ ​

Total 2014 Restructuring, Impairment and Plant Closing Costs

   $ 13   $ 52  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           


 

 
   Three months
ended
June 30, 2013		   Six months
ended
June 30, 2013		  

Cash charges:

              

2013 charges for 2012 and prior initiatives

   $ 18   $ 62  

2013 charges for 2013 initiatives

     12     14  

Pension related charges

     1     5  

Reversal of reserves no longer required

     (2 )   (9 )

Non-cash charges

     —     1  
           
​ ​ ​ ​ ​ ​ ​ ​

Total 2013 Restructuring, Impairment and Plant Closing Costs

   $ 29   $ 73  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​