Huntsman Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS (Tables)

RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS (Tables)

3 Months Ended

Mar. 31, 2017

RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS

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

As of March 31, 2017 and December 31, 2016, accrued restructuring costs by type of cost and initiative consisted of the following (dollars in millions):


					Non-cancelable		Other
	Workforce		Demolition and		lease and contract		restructuring
	reductions(1)		decommissioning		termination costs		costs		Total(2)
Accrued liabilities as of January 1, 2017	$	26	$	18	$	42	$	5	$	91
2017 charges for 2016 and prior initiatives		1		2		1		4		8
2017 charges for 2017 initiatives		25		—		—		—		25
Distribution of prefunded restructuring costs		(1)		—		—		—		(1)
2017 payments for 2016 and prior initiatives		(6)		(5)		(2)		(5)		(18)
Net activity of discontinued operations		—		—		(1)		—		(1)
Foreign currency effect on liability balance		—		1		2		—		3
Accrued liabilities as of March 31, 2017	$	45	$	16	$	42	$	4	$	107

(1)

The workforce reduction reserves relate to the termination of 486 positions, of which 432 positions had not been terminated as of March 31, 2017.

(2)

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


	March 31,		December 31,
	2017		2016
2015 and prior initiatives	$	81	$	88
2016 initiatives		1		3
2017 initiatives		25		—
Total	$	107	$	91

Schedule of accrued liabilities by year of initiatives

(1)

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


	March 31,		December 31,
	2017		2016
2015 and prior initiatives	$	81	$	88
2016 initiatives		1		3
2017 initiatives		25		—
Total	$	107	$	91

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):


			Performance		Advanced		Textile		Pigments		Discontinued		Corporate
	Polyurethanes		Products		Materials		Effects		and Additives		Operations		and other		Total
Accrued liabilities as of January 1, 2017	$	2	$	—	$	3	$	61	$	21	$	2	$	2	$	91
2017 charges for 2016 and prior initiatives		—		—		—		3		5		—		—		8
2017 charges for 2017 initiatives		—		—		—		6		19		—		—		25
Distribution of prefunded restructuring costs		—		—		—		—		(1)		—		—		(1)
2017 payments for 2016 and prior initiatives		(1)		—		—		(7)		(10)		—		—		(18)
Net activity of discontinued operations		—		—		—		—		—		(1)		—		(1)
Foreign currency effect on liability balance		—		—		1		2		—		—		—		3
Accrued liabilities as of March 31, 2017	$	1	$	—	$	4		65	$	34	$	1	$	2	$	107

Current portion of restructuring reserves	$	1	$	—	$	2	$	26	$	30	$	1	$	2	$	62
Long-term portion of restructuring reserves		—		—		2		39		4		—		—		45

Schedule of cash and noncash restructuring charges by initiative

Details with respect to cash and noncash restructuring charges for the three months ended March 31, 2017 and 2016 by initiative are provided below (dollars in millions):


	Three months ended March 31, 2017
Cash charges:
2017 charges for 2016 and prior initiatives	$	8
2017 charges for 2017 initiatives		25
Accelerated depreciation		1
Other non-cash charges		2
Total 2017 Restructuring, Impairment and Plant Closing Costs	$	36


	Three months ended March 31, 2016
Cash charges:
2016 charges for 2015 and prior initiatives	$	9
Reversal of reserves no longer required		(1)
Accelerated depreciation		4
Other non-cash charges		1
Total 2016 Restructuring, Impairment and Plant Closing Costs	$	13