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

Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Restructuring, Impairment and Plant Closing Costs

Note 7 - Restructuring, Impairment and Plant Closing Costs

3 Months Ended

Mar. 31, 2022

Restructuring and Related Activities Disclosure [Text Block]

7. RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS

As of March 31, 2022 and December 31, 2021, accrued restructuring costs by type of cost and initiative consisted of the following (dollars in millions):

	*Workforce reductions*			*Non-cancelable lease and contract termination costs*		*Other restructuring costs*			*Total*
Accrued liabilities as of January 1, 2022	$	28		$	2	$	1		$	31
2022 charges for 2022 and prior initiatives		—			—		—			—
2022 payments for 2021 and prior initiatives		(6	)		—		(1	)		(7	)
Accrued liabilities as of March 31, 2022	$	22		$	2	$	—		$	24

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, 2022	$	9		$	1	$	5		$	5		$	11		$	31
2022 charges for 2022 and prior initiatives		—			—		—			—			—			—
2022 payments for 2021 and prior initiatives		(3	)		—		(1	)		(1	)		(2	)		(7	)
Accrued liabilities as of March 31, 2022	$	6		$	1	$	4		$	4		$	9		$	24

Current portion of restructuring reserves	$	6		$	1	$	1		$	1		$	3		$	12
Long-term portion of restructuring reserves		—			—		3			3			6			12

Details with respect to cash and noncash restructuring charges from continuing operations for the three months ended March 31, 2022 and 2021 are provided below (dollars in millions):

	*Three months*
	*ended*
	*March 31,*
	*2022*		*2021*
Cash charges:
2022 charges for 2022 and prior initiatives	$	—	$	—
2021 charges for 2020 and prior initiatives		—		14
2021 charges for 2021 initiatives		—		2
Noncash charges:
Other noncash charges		—		8
Total restructuring, impairment and plant closing costs	$	—	$	24

Restructuring Activities

Beginning in the first quarter of 2021, Corporate and other segment incurred restructuring costs related to a restructuring program to optimize our global approach to leveraging shared services capabilities. In connection with this restructuring program, we recorded restructuring expense of approximately $14 million in the three months ended March 31, 2021 primarily related to workforce reductions. There were no significant restructuring costs incurred during the three months ended March 31, 2022. We expect to record further restructuring expenses of approximately $2 million through 2023.

Beginning in the third quarter of 2020, our Polyurethanes segment implemented a restructuring program to optimize its downstream footprint. In connection with this restructuring program, we recorded restructuring expense of approximately $1 million in the three months ended March 31, 2021. There were no significant restructuring costs incurred during the three months ended March 31, 2022. We expect to record further restructuring expenses of between approximately $1 million and $2 million through the first half of 2022.

Beginning in the second quarter of 2020, our Advanced Materials segment implemented restructuring programs in connection with the CVC Thermoset Specialties Acquisition, the alignment of the segment’s commercial organization and optimization of the segment’s manufacturing processes. There were no significant restructuring costs incurred during both the three months ended March 31, 2022 and 2021. We expect to record further restructuring expenses of approximately $6 million through the end of 2023.