6. RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS
As of March 31, 2018 and December 31, 2017, 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, 2018
|
|
$
|
5
|
|
$
|
2
|
|
$
|
41
|
|
$
|
5
|
|
$
|
53
|
|
2018 credits for 2017 and prior initiatives
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5)
|
|
|
(5)
|
|
2018 charges for 2018 initiatives
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
5
|
|
2018 (credits) payments for 2017 and prior initiatives
|
|
|
(1)
|
|
|
(1)
|
|
|
(1)
|
|
|
5
|
|
|
2
|
|
2018 payments for 2018 initiatives
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
(1)
|
|
Foreign currency effect on liability balance
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
3
|
|
Accrued liabilities as of March 31, 2018
|
|
$
|
5
|
|
$
|
1
|
|
$
|
42
|
|
$
|
9
|
|
$
|
57
|
|
(1)
|
|
The workforce reduction reserves relate to the termination of 125 positions, of which 81 positions had not been terminated as of March 31, 2018.
|
|
(2)
|
|
Accrued liabilities by initiatives were as follows (dollars in millions):
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
|
|
2018
|
|
2017
|
|
2016 and prior initiatives
|
|
$
|
51
|
|
$
|
51
|
|
2017 initiatives
|
|
|
2
|
|
|
2
|
|
2018 initiatives
|
|
|
4
|
|
|
—
|
|
Total
|
|
$
|
57
|
|
$
|
53
|
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, 2018
|
|
$
|
1
|
|
$
|
1
|
|
$
|
3
|
|
$
|
47
|
|
$
|
1
|
|
$
|
53
|
|
|
2018 credits for 2017 and prior initiatives
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5)
|
|
|
—
|
|
|
(5)
|
|
|
2018 charges for 2018 initiatives
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
5
|
|
|
2018 (credits) payments for 2017 and prior initiatives
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
2
|
|
|
2018 payments for 2018 initiatives
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
(1)
|
|
|
Foreign currency effect on liability balance
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
3
|
|
|
Accrued liabilities as of March 31, 2018
|
|
$
|
—
|
|
$
|
1
|
|
$
|
4
|
|
|
47
|
|
$
|
5
|
|
$
|
57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of restructuring reserves
|
|
$
|
—
|
|
$
|
1
|
|
$
|
1
|
|
$
|
7
|
|
$
|
5
|
|
$
|
14
|
|
|
Long-term portion of restructuring reserves
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
40
|
|
|
—
|
|
|
43
|
|
Details with respect to cash and noncash restructuring charges from continuing operations for the three months ended March 31, 2018 and 2017 by initiative are provided below (dollars in millions):
|
|
|
|
|
|
|
|
|
|
Three months
|
|
|
|
|
ended
|
|
|
|
|
March 31, 2018
|
|
Cash charges:
|
|
|
|
|
|
2018 credits for 2017 and prior initiatives
|
|
|
$
|
(5)
|
|
2018 charges for 2018 initiatives
|
|
|
|
5
|
|
Pension-related charges
|
|
|
|
—
|
|
Noncash charges:
|
|
|
|
|
|
Accelerated depreciation
|
|
|
|
—
|
|
Other noncash credits
|
|
|
|
2
|
|
Total 2018 Restructuring, Impairment and Plant Closing Costs
|
|
|
$
|
2
|
|
|
|
|
|
|
|
|
|
|
Three months
|
|
|
|
|
ended
|
|
|
|
|
March 31, 2017
|
|
Cash charges:
|
|
|
|
|
|
2017 charges for 2016 and prior initiatives
|
|
|
$
|
3
|
|
2017 charges for 2017 initiatives
|
|
|
|
6
|
|
Noncash charges:
|
|
|
|
|
|
Accelerated depreciation
|
|
|
|
1
|
|
Other noncash credits
|
|
|
|
(1)
|
|
Total 2017 Restructuring, Impairment and Plant Closing Costs
|
|
|
$
|
9
|
2018 Restructuring Activities
In September 2011, we implemented a significant restructuring of our Textile Effects segment, including the closure of our production facilities and business support offices in Basel, Switzerland. In connection with this restructuring plan, during the three months ended March 31, 2018, our Textile Effects segment recorded a credit of $5 million related to an installment payment for the sale of land at the Basel, Switzerland site.
2017 Restructuring Activities
In connection with the Textile Effects Restructuring Plan, we recorded restructuring expense of $6 million in the three months ended March 31, 2017 related primarily to workforce reductions.