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, 2016

RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS

Schedule of accrued restructuring, impairment and plant closing costs by type of cost and initiative

As of December 31, 2016, 2015 and 2014, 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 and contract termination costs			Other restructuring costs			Total(2)
Accrued liabilities as of January 1, 2014	$	52		$	—		$	60		$	1		$	113
Adjustment to 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
Adjustment to Pigments and Additives opening balance sheet liabilities		1			—			—			—			1
2015 charges for 2014 and prior initiatives		71			24			15			23			133
2015 charges for 2015 initiatives		58			1			—			8			67
Reversal of reserves no longer required		(7	)		—			(6	)		—			(13	)
2015 payments for 2014 and prior initiatives		(68	)		(8	)		(17	)		(21	)		(114	)
2015 payments for 2015 initiatives		(26	)		(1	)		—			(8	)		(35	)
Foreign currency effect on liability balance		(7	)		—			(2	)		—			(9	)

Accrued liabilities as of December 31, 2015		109			16			38			5			168
2016 charges for 2015 and prior initiatives		4			24			9			29			66
2016 charges for 2016 initiatives		7			—			—			5			12
Reversal of reserves no longer required		(2	)		—			—			—			(2	)
Distribution of prefunded restructuring costs		(41	)		(5	)		—			(1	)		(47	)
2016 payments for 2015 and prior initiatives		(43	)		(16	)		(4	)		(29	)		(92	)
2016 payments for 2016 initiatives		(7	)		—			—			(4	)		(11	)
Net activity of discontinued operations		—			—			1			—			1
Foreign currency effect on liability balance		(1	)		(1	)		(2	)		—			(4	)

Accrued liabilities as of December 31, 2016	$	26		$	18		$	42		$	5		$	91


(1)	The total workforce reduction reserves of $26 million relate to the termination of 375 positions, of which 339 positions had not been terminated as of December 31, 2016.
(2)	In December 2015, we prepaid $49 million of severance and other restructuring costs related to restructuring programs in our Pigments and Additives, Textile Effects and Performance Products segments. Certain of the severance costs were prepaid to a third party who distributed the severance payments to affected employees when they were terminated in 2016.
(3)	Accrued liabilities remaining at December 31, 2016 and 2015 by year of initiatives were as follows (dollars in millions):

	December 31,
	2016		2015
2014 initiatives and prior	$	84	$	143
2015 initiatives		4		25
2016 initiatives		3		—

Total	$	91	$	168

Schedule of accrued liabilities by year of initiatives

	December 31,
	2016		2015
2014 initiatives and prior	$	84	$	143
2015 initiatives		4		25
2016 initiatives		3		—

Total	$	91	$	168

Schedule of 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 and other			Total
Accrued liabilities as of January 1, 2014	$	9		$	10		$	12		$	68		$	2		$	3		$	9		$	113
Adjustment to 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
Adjustment to Pigments & Additives opening balance sheet liabilities		—			—			—			—			1			—			—			1
2015 charges for 2014 and prior initiatives		2			3			1			42			77			—			8			133
2015 charges for 2015 initiatives		17			8			5			2			34			—			1			67
Reversal of reserves no longer required		(4	)		(1	)		—			(7	)		—			—			(1	)		(13	)
2015 payments for 2014 and prior initiatives		(4	)		(8	)		(2	)		(34	)		(59	)		—			(7	)		(114	)
2015 payments for 2015 initiatives		(11	)		(1	)		(5	)		(1	)		(16	)		—			(1	)		(35	)
Foreign currency effect on liability balance		(1	)		(1	)		—			(1	)		(6	)		—			—			(9	)

Accrued liabilities as of December 31, 2015		5			9			4			55			90			1			4			168
2016 charges for 2015 and prior initiatives		—			16			—			28			19			—			3			66
2016 charges for 2016 initiatives		4			—			—			1			6			—			1			12
Reversal of reserves no longer required		(1	)		—			—			—			—			—			(1	)		(2	)
Distribution of prefunded restructuring costs		—			(6	)		—			(5	)		(36	)		—			—			(47	)
2016 payments for 2015 and prior initiatives		(3	)		(19	)		—			(14	)		(52	)		—			(4	)		(92	)
2016 payments for 2016 initiatives		(3	)		—			—			(1	)		(6	)		—			(1	)		(11	)
Net activity of discontinued operations		—			—			—			—			—			1			—			1
Foreign currency effect on liability balance		—			—			(1	)		(3	)		—			—			—			(4	)

Accrued liabilities as of December 31, 2016	$	2		$	—		$	3		$	61		$	21		$	2		$	2		$	91


Current portion of restructuring reserves	$	2		$	—		$	1		$	24		$	14		$	2		$	2		$	45
Long-term portion of restructuring reserves		—			—			2			37			7			—			—			46

Schedule of cash and noncash restructuring charges by initiative

Details with respect to cash and noncash restructuring charges for the years ended December 31, 2016, 2015 and 2014 by initiative are provided below (dollars in millions):

Cash charges:
2016 charges for 2015 and prior initiatives	$	66
2016 charges for 2016 initiatives		12
Reversal of reserves no longer required		(2	)
Accelerated depreciation		8
Non-cash credits, net		(3	)

Total 2016 restructuring, impairment and plant closing costs	$	81


Cash charges:
2015 charges for 2014 and prior initiatives	$	133
2015 charges for 2015 initiatives		67
Reversal of reserves no longer required		(13	)
Pension-related charges		3
Accelerated depreciation		74
Non-cash charges		38

Total 2015 restructuring, impairment and plant closing costs	$	302


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