Huntsman Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS (Tables)

RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS (Tables)

12 Months Ended

Dec. 31, 2014

RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS

Accrued restructuring costs by type of cost and initiative

As of December 31, 2014, 2013 and 2012, accrued restructuring, impairment and plant closing costs by type of cost and initiative consisted of the following (dollars in millions):

	Workforce reductions(1)			Demolition and decommissioning			Non-cancelable lease costs			Other restructuring costs			Total(2)
Accrued liabilities as of January 1, 2012	$	73		$	—		$	17		$	2		$	92
2012 charges for 2011 and prior initiatives		9			5			—			10			24
2012 charges for 2012 initiatives		64			—			—			5			69
Reversal of reserves no longer required		(15	)		—			—			(1	)		(16	)
2012 payments for 2011 and prior initiatives		(31	)		(6	)		(2	)		(11	)		(50	)
2012 payments for 2012 initiatives		(12	)		—			—			(6	)		(18	)
Foreign currency effect on liability balance		2			1			—			1			4

Accrued liabilities as of December 31, 2012		90			—			15			—			105
2013 charges for 2012 and prior initiatives		32			16			53			20			121
2013 charges for 2013 initiatives		28			—			—			8			36
Reversal of reserves no longer required		(22	)		—			(4	)		—			(26	)
2013 payments for 2012 and prior initiatives		(66	)		(16	)		(3	)		(19	)		(104	)
2013 payments for 2013 initiatives		(10	)		—			—			(8	)		(18	)
Net activity of discontinued operations		—			—			(3	)		—			(3	)
Foreign currency effect on liability balance		—			—			2			—			2

Accrued liabilities as of December 31, 2013		52			—			60			1			113
Pigments and Additives opening balance sheet liabilities		1			—			—			—			1
2014 charges for 2013 and prior initiatives		37			7			4			17			65
2014 charges for 2014 initiatives		64			—			—			—			64
Reversal of reserves no longer required		(4	)		—			—			(1	)		(5	)
2014 payments for 2013 and prior initiatives		(58	)		(7	)		(8	)		(13	)		(86	)
2014 payments for 2014 initiatives		(1	)		—			—			(1	)		(2	)
Net activity of discontinued operations		—			—			(2	)		—			(2	)
Foreign currency effect on liability balance		(4	)		—			(6	)		—			(10	)

Accrued liabilities as of December 31, 2014	$	87		$	—		$	48		$	3		$	138

(1)	The total workforce reduction reserves of $87 million relate to the termination of 1,572 positions, of which 1,418 positions had not been terminated as of December 31, 2014.
(2)	Accrued liabilities remaining at December 31, 2014 and 2013 by year of initiatives were as follows (dollars in millions):

	December 31,
	2014		2013
2012 initiatives and prior	$	63	$	95
2013 initiatives		12		18
2014 initiatives		63		—

Total	$	138	$	113

Accrued liabilities by initiative

Accrued liabilities remaining at December 31, 2014 and 2013 by year of initiatives were as follows (dollars in millions):

	December 31,
	2014		2013
2012 initiatives and prior	$	63	$	95
2013 initiatives		12		18
2014 initiatives		63		—

Total	$	138	$	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 and Additives			Discontinued Operations			Corporate & Other			Total
Accrued liabilities as of January 1, 2012		—			1			12			69			3			6			1			92
2012 charges for 2011 and prior initiatives		—			1			4			14			4			—			1			24
2012 charges for 2012 initiatives		38			—			30			—			—			—			1			69
Reversal of reserves no longer required		—			—			—			(16	)		—			—			—			(16	)
2012 payments for 2011 and prior initiatives		—			(2	)		(15	)		(27	)		(5	)		—			(1	)		(50	)
2012 payments for 2012 initiatives		(12	)		—			(6	)		—			—			—			—			(18	)
Foreign currency effect on liability balance		1			—			2			2			(1	)		—			—			4

Accrued liabilities as of December 31, 2012		27			—			27			42			1			6			2			105
2013 charges for 2012 and prior initiatives		5			—			38			73			4			—			1			121
2013 charges for 2013 initiatives		—			18			—			1			—			—			17			36
Reversal of reserves no longer required		(9	)		—			(8	)		(9	)		—			—			—			(26	)
2013 payments for 2012 and prior initiatives		(14	)		—			(45	)		(41	)		(3	)		—			(1	)		(104	)
2013 payments for 2013 initiatives		—			(7	)		—			—			(1	)		—			(10	)		(18	)
Net activity of discontinued operations		—			—			—			—			—			(3	)		—			(3	)
Foreign currency effect on liability balance		—			(1	)		—			2			1			—			—			2

Accrued liabilities as of December 31, 2013		9			10			12			68			2			3			9			113
Pigments and Additives opening balance sheet liabilities		—			—			—			—			1			—			—			1
2014 charges for 2013 and prior initiatives		2			23			10			13			3			—			14			65
2014 charges for 2014 initiatives		—			—			1			6			57			—			—			64
Reversal of reserves no longer required		(1	)		—			(2	)		(1	)		—			—			(1	)		(5	)
2014 payments for 2013 and prior initiatives		(3	)		(22	)		(14	)		(25	)		(4	)		—			(18	)		(86	)
2014 payments for 2014 initiatives		—			—			(1	)		(1	)		—			—			—			(2	)
Net activity of discontinued operations		—			—			—			—			—			(2	)		—			(2	)
Foreign currency effect on liability balance		(1	)		(2	)		(1	)		(6	)		—			—			—			(10	)

Accrued liabilities as of December 31, 2014	$	6		$	9		$	5		$	54		$	59		$	1		$	4		$	138


Current portion of restructuring reserves	$	3		$	9		$	2		$	11		$	59		$	1		$	4		$	89
Long-term portion of restructuring reserve		3			—			3			43			—			—			—			49

Cash and noncash restructuring charges by initiative

Details with respect to cash and noncash restructuring charges for the years ended December 31, 2014, 2013 and 2012 by initiative are provided below (dollars in millions):

Cash charges:
2014 charges for 2013 and prior initiatives		65
2014 charges for 2014 initiatives		64
Reversal of reserves no longer required		(5	)
Pension-related charges		2
Non-cash charges		32

Total 2014 Restructuring, Impairment and Plant Closing Costs	$	158


Cash charges:
2013 charges for 2012 and prior initiatives	$	121
2013 charges for 2013 initiatives		36
Reversal of reserves no longer required		(26	)
Pension-related charges		7
Non-cash charges		13

Total 2013 Restructuring, Impairment and Plant Closing Costs	$	151


Cash charges:
2012 charges for 2011 and prior initiatives	$	24
2012 charges for 2012 initiatives		69
Reversal of reserves no longer required		(16	)
Non-cash charges		15

Total 2012 Restructuring, Impairment and Plant Closing Costs	$	92