Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS (Tables)

v3.10.0.1
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS (Tables)
 9 Months Ended
Sep. 30, 2018
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, 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 charges (credits) for 2017 and prior initiatives

 

 

 1

 

 

 —

 

 

 1

 

 

(3)

 

 

(1)

2018 charges for 2018 initiatives

 

 

 —

 

 

 —

 

 

 —

 

 

 7

 

 

 7

2018 (payments) credits for 2017 and prior initiatives

 

 

(3)

 

 

(1)

 

 

(1)

 

 

 3

 

 

(2)

2018 payments for 2018 initiatives

 

 

 —

 

 

 —

 

 

 —

 

 

(5)

 

 

(5)

Foreign currency effect on liability balance

 

 

 —

 

 

 —

 

 

 1

 

 

 —

 

 

 1

Accrued liabilities as of September 30, 2018

 

$

 3

 

$

 1

 

$

42

 

$

 7

 

$

53

(1)

The workforce reduction reserves relate to the termination of 52 positions, of which 9 positions had not been terminated as of September 30, 2018.

 

(2)

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

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

    

2018

    

2017

2016 and prior initiatives

 

$

49

 

$

51

2017 initiatives

 

 

 2

 

 

 2

2018 initiatives

 

 

 2

 

 

 —

Total

 

$

53

 

$

53

 

Schedule of accrued liabilities by year of initiatives

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

    

2018

    

2017

2016 and prior initiatives

 

$

49

 

$

51

2017 initiatives

 

 

 2

 

 

 2

2018 initiatives

 

 

 2

 

 

 —

Total

 

$

53

 

$

53

 

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 by segment and initiative are provided below (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 charges (credits) for 2017 and prior initiatives

 

 

 —

 

 

 1

 

 

 —

 

 

(4)

 

 

 2

 

 

(1)

 

2018 charges for 2018 initiatives

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 7

 

 

 7

 

2018 payments for 2017 and prior initiatives

 

 

(1)

 

 

(1)

 

 

 —

 

 

 —

 

 

 —

 

 

(2)

 

2018 payments for 2018 initiatives

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(5)

 

 

(5)

 

Foreign currency effect on liability balance

 

 

 —

 

 

 —

 

 

 —

 

 

 1

 

 

 —

 

 

 1

 

Accrued liabilities as of September 30, 2018

 

$

 —

 

$

 1

 

$

 3

 

 

44

 

$

 5

 

$

53

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current portion of restructuring reserves

 

$

 —

 

$

 1

 

$

 1

 

$

 3

 

$

 5

 

$

10

 

Long-term portion of restructuring reserves

 

 

 —

 

 

 —

 

 

 2

 

 

41

 

 

 —

 

 

43

 

 

Schedule of cash and noncash restructuring charges

Details with respect to cash and noncash restructuring charges from continuing operations for the three and nine months ended September 30, 2018 and 2017 are provided below (dollars in millions):

 

 

 

 

 

 

 

 

 

    

Three months

 

Nine months

 

 

ended

 

ended

 

 

September 30, 2018

 

September 30, 2018

Cash charges:

 

 

 

 

 

 

2018 charges for 2017 and prior initiatives

 

$

 3

 

$

(1)

2018 charges for 2018 initiatives

 

 

 2

 

 

 7

Noncash charges:

 

 

 

 

 

 

Other noncash charges

 

 

 —

 

 

 2

Total 2018 restructuring, impairment and plant closing costs

 

$

 5

 

$

 8

 

 

 

 

 

 

 

 

 

    

Three months

 

Nine months

 

 

ended

 

ended

 

 

September 30, 2017

 

September 30, 2017

Cash charges:

 

 

 

 

 

 

2017 charges for 2016 and prior initiatives

 

$

 2

 

$

 7

2017 charges for 2017 initiatives

 

 

 —

 

 

 6

Pension-related charges

 

 

 —

 

 

 1

Noncash charges:

 

 

 

 

 

 

Accelerated depreciation

 

 

 —

 

 

 2

Other noncash credits

 

 

(1)

 

 

(3)

Total 2017 restructuring, impairment and plant closing costs

 

$

 1

 

$

13