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)
 9 Months Ended
Sep. 30, 2014
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS  
Accrued restructuring costs by type of cost and initiative

As of September 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

     40     5     4     11     60  

2014 charges for 2014 initiatives

     6     —     —     —     6  

Reversal of reserves no longer required

     (7 )   —     —     (1 )   (8 )

2014 payments for 2013 and prior initiatives

     (39 )   (5 )   (6 )   (10 )   (60 )

Net activity of discontinued operations

     —     —     (1 )   —     (1 )

Foreign currency effect on liability balance

     (3 )   —     (4 )   1     (6 )
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Accrued liabilities as of September 30, 2014

   $ 49   $ —   $ 53   $ 2   $ 104  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       
(1)
The workforce reduction reserves relate to the termination of 635 positions, of which 496 positions had not been terminated as of September 30, 2014.

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

 
   September 30,
2014		   December 31,
2013		  

2012 and prior initiatives

   $ 68   $ 95  

2013 initiatives

     30     18  

2014 initiatives

     6     —  
           
​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 104   $ 113  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           
Accrued liabilities by initiative
Accrued liabilities by initiatives were as follows (dollars in millions):

 
   September 30,
2014		   December 31,
2013		  

2012 and prior initiatives

   $ 68   $ 95  

2013 initiatives

     30     18  

2014 initiatives

     6     —  
           
​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 104   $ 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     12     11     3     —     11     60  

2014 charges for 2014 initiatives

     —     —     —     6     —     —     —     6  

Reversal of reserves no longer required

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

2014 payments for 2013 and prior initiatives

     (3 )   (7 )   (13 )   (21 )   (3 )   —     (13 )   (60 )

Net activity of discontinued operations

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

Foreign currency effect on liability balance

     —     (1 )   —     (4 )   (1 )   —     —     (6 )
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Accrued liabilities as of September 30, 2014

   $ 6   $ 24   $ 7   $ 58   $ 1   $ 2   $ 6   $ 104  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Current portion of restructuring reserves

   $ 2   $ 24   $ 6   $ 7   $ 1   $ 2   $ 6   $ 48  

Long-term portion of restructuring reserves

     4     —     1     51     —     —     —     56  
Cash and noncash restructuring charges by initiative

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

 
   Three months
ended
September 30, 2014		   Nine months
ended
September 30, 2014		  

Cash charges:

              

2014 charges for 2013 and prior initiatives

   $ 9   $ 60  

2014 charges for 2014 initiatives

     —     6  

Pension related charges

     —     2  

Reversal of reserves no longer required

     —     (8 )

Noncash charges

     30     31  
           
​ ​ ​ ​ ​ ​ ​ ​

Total 2014 Restructuring, Impairment and Plant Closing Costs

   $ 39   $ 91  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           


 

 
   Three months
ended
September 30, 2013		   Nine months
ended
September 30, 2013		  

Cash charges:

              

2013 charges for 2012 and prior initiatives

   $ 25   $ 87  

2013 charges for 2013 initiatives

     14     28  

Pension related charges

     2     7  

Reversal of reserves no longer required

     (10 )   (19 )

Non-cash charges

     6     7  
           
​ ​ ​ ​ ​ ​ ​ ​

Total 2013 Restructuring, Impairment and Plant Closing Costs

   $ 37   $ 110  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​