Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS (Tables)

v3.8.0.1
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS (Tables)
 9 Months Ended
Sep. 30, 2017
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS  
Schedule of accrued restructuring, impairment and plant closing costs by type of cost and initiative

As of September 30, 2017 and December 31, 2016, accrued restructuring costs of continuing operations 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

 

$

 4

 

$

19

 

$

40

 

$

 5

 

$

68

2017 charges for 2016 and prior initiatives

 

 

 —

 

 

 5

 

 

 1

 

 

 1

 

 

 7

2017 charges for 2017 initiatives

 

 

 6

 

 

 —

 

 

 —

 

 

 —

 

 

 6

2017 payments for 2016 and prior initiatives

 

 

 —

 

 

(21)

 

 

(1)

 

 

(2)

 

 

(24)

2017 payments for 2017 initiatives

 

 

(2)

 

 

 —

 

 

 —

 

 

 —

 

 

(2)

Foreign currency effect on liability balance

 

 

 1

 

 

 1

 

 

 2

 

 

 —

 

 

 4

Accrued liabilities as of September 30, 2017

 

$

 9

 

$

 4

 

$

42

 

$

 4

 

$

59

(1)

The workforce reduction reserves relate to the termination of 163 positions, of which 116 positions had not been terminated as of September 30, 2017.

 

(2)

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

 

 

 

 

 

 

 

 

 

 

September 30, 

 

December 31, 

 

    

2017

    

2016

2015 and prior initiatives

 

$

55

 

$

67

2016 initiatives

 

 

 —

 

 

 1

2017 initiatives

 

 

 4

 

 

 —

Total

 

$

59

 

$

68

 

Schedule of accrued liabilities by year of initiatives

 

 

 

 

 

 

 

 

 

September 30, 

 

December 31, 

 

    

2017

    

2016

2015 and prior initiatives

 

$

55

 

$

67

2016 initiatives

 

 

 —

 

 

 1

2017 initiatives

 

 

 4

 

 

 —

Total

 

$

59

 

$

68

 

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

 

Corporate

 

 

 

 

    

Polyurethanes

    

Products

    

Materials

    

Effects

    

and other

    

Total

 

Accrued liabilities as of January 1, 2017

 

$

 2

 

$

 —

 

$

 3

 

$

61

 

$

 2

 

$

68

 

2017 charges for 2016 and prior initiatives

 

 

 —

 

 

 —

 

 

 —

 

 

 7

 

 

 —

 

 

 7

 

2017 charges for 2017 initiatives

 

 

 —

 

 

 —

 

 

 —

 

 

 6

 

 

 —

 

 

 6

 

2017 payments for 2016 and prior initiatives

 

 

(1)

 

 

 —

 

 

 —

 

 

(23)

 

 

 —

 

 

(24)

 

2017 payments for 2017 initiatives

 

 

 —

 

 

 —

 

 

 —

 

 

(2)

 

 

 —

 

 

(2)

 

Foreign currency effect on liability balance

 

 

 —

 

 

 —

 

 

 —

 

 

 4

 

 

 —

 

 

 4

 

Accrued liabilities as of September 30, 2017

 

$

 1

 

$

 —

 

$

 3

 

 

53

 

$

 2

 

$

59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current portion of restructuring reserves

 

$

 1

 

$

 —

 

$

 2

 

$

14

 

$

 2

 

$

19

 

Long-term portion of restructuring reserves

 

 

 —

 

 

 —

 

 

 1

 

 

39

 

 

 —

 

 

40

 

 

Schedule of cash and noncash restructuring charges by initiative

Details with respect to cash and noncash restructuring charges from continuing operations for the three and nine months ended September 30, 2017 and 2016 by initiative are provided below (dollars in millions):

 

 

 

 

 

 

 

 

 

    

Three months ended September 30, 2017

 

Nine months ended September 30, 2017

Cash charges:

 

 

 

 

 

 

2017 charges for 2016 and prior initiatives

 

$

 2

 

$

 7

2017 charges for 2017 initiatives

 

 

 —

 

 

 6

Pension-related charges

 

 

 —

 

 

 1

Accelerated depreciation

 

 

 —

 

 

 2

Gain on sale of land

 

 

(1)

 

 

(3)

Total 2017 Restructuring, Impairment and Plant Closing Costs

 

$

 1

 

$

13

 

 

 

 

 

 

 

 

 

    

Three months ended September 30, 2016

 

Nine months ended September 30, 2016

Cash charges:

 

 

 

 

 

 

2016 charges for 2015 and prior initiatives

 

$

40

 

$

56

2016 charges for 2016 initiatives

 

 

 1

 

 

 4

Gain on sale of land

 

 

(3)

 

 

(3)

Reversal of reserves no longer required

 

 

 —

 

 

(1)

Total 2016 Restructuring, Impairment and Plant Closing Costs

 

$

38

 

$

56