Registration of securities issued in business combination transactions

RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS (Tables)

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RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS (Tables)
12 Months Ended
Dec. 31, 2012
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS  
Accrued restructuring costs by type of cost and initiative

As of December 31, 2012, 2011 and 2010, accrued restructuring, impairment and plant closing costs by type of cost and initiative consisted of the following (dollars in millions):

 
  Workforce
reductions(1)
  Demolition and
decommissioning
  Non-cancelable
lease costs
  Other
restructuring
costs
  Total(2)  

Accrued liabilities as of January 1, 2010

  $ 60   $ 2   $ 2   $ 11   $ 75  

2010 charges for 2005 and prior initiatives

    1                 1  

2010 charges for 2008 initiatives

    1                 1  

2010 charges for 2009 initiatives

    4             5     9  

2010 charges for 2010 initiatives

    22             1     23  

Reversal of reserves no longer required

    (6 )       (1 )       (7 )

2010 payments for 2005 and prior initiatives

    (1 )   (1 )           (2 )

2010 payments for 2006 initiatives

    (3 )               (3 )

2010 payments for 2008 initiatives

    (7 )               (7 )

2010 payments for 2009 initiatives

    (11 )           (5 )   (16 )

2010 payments for 2010 initiatives

    (1 )           (2 )   (3 )

Net activity of discontinued operations

    (26 )               (26 )

Foreign currency effect on liability balance

    3             1     4  
                       

Accrued liabilities as of December 31, 2010

    36     1     1     11     49  

2011 charges for 2006 and prior initiatives

    1                 1  

2011 charges for 2009 initiatives

    1             6     7  

2011 charges for 2010 initiatives

    2     2     10     1     15  

2011 charges for 2011 initiatives

    87         1     1     89  

Reversal of reserves no longer required

    (5 )               (5 )

2011 payments for 2006 and prior initiatives

    (1 )       (1 )   (1 )   (3 )

2011 payments for 2008 initiatives

    (2 )               (2 )

2011 payments for 2009 initiatives

    (6 )           (6 )   (12 )

2011 payments for 2010 initiatives

    (17 )   (3 )       (1 )   (21 )

2011 payments for 2011 initiatives

    (13 )           (1 )   (14 )

Net activity of discontinued operations

                (2 )   (2 )

Foreign currency effect on liability balance

    (10 )               (10 )
                       

Accrued liabilities as of December 31, 2011

    73         11     8     92  

2012 charges for 2007 and prior initiatives

    2                 2  

2012 charges for 2009 initiatives

    1             4     5  

2012 charges for 2010 initiatives

    2                 2  

2012 charges for 2011 initiatives

    4     5         6     15  

2012 charges for 2012 initiatives

    64             5     69  

Reversal of reserves no longer required

    (15 )           (1 )   (16 )

2012 payments for 2007 and prior initiatives

    (2 )           (1 )   (3 )

2012 payments for 2009 initiatives

    (1 )           (5 )   (6 )

2012 payments for 2010 initiatives

    (3 )       (1 )       (4 )

2012 payments for 2011 initiatives

    (25 )   (6 )   (1 )   (5 )   (37 )

2012 payments for 2012 initiatives

    (12 )           (6 )   (18 )

Foreign currency effect on liability balance

    2     1         1     4  
                       

Accrued liabilities as of December 31, 2012

  $ 90   $   $ 9   $ 6   $ 105  
                       

(1)
The total workforce reduction reserves of $90 million relate to the termination of 831 positions, of which 786 positions had not been terminated as of December 31, 2012.
(2)
Accrued liabilities remaining at December 31, 2012 and 2011 by year of initiatives were as follows (dollars in millions):

 
  December 31,  
 
  2012   2011  

2007 initiatives and prior

  $ 2   $ 2  

2009 initiatives

    7     11  

2010 initiatives

    9     16  

2011 initiatives

    34     63  

2012 initiatives

    53      
           

Total

  $ 105   $ 92  
           
Accrued restructuring costs by type of initiative
(2)
Accrued liabilities remaining at December 31, 2012 and 2011 by year of initiatives were as follows (dollars in millions):

 
  December 31,  
 
  2012   2011  

2007 initiatives and prior

  $ 2   $ 2  

2009 initiatives

    7     11  

2010 initiatives

    9     16  

2011 initiatives

    34     63  

2012 initiatives

    53      
           

Total

  $ 105   $ 92  
           
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):

 
  Polyurethanes   Performance
Products
  Advanced
Materials
  Textile
Effects
  Pigments   Discontinued
Operations
  Corporate &
Other
  Total  

Accrued liabilities as of January 1, 2010

  $ 2   $   $ 7   $ 17   $ 11   $ 34   $ 4   $ 75  

2010 charges for 2005 initiatives

                    1             1  

2010 charges for 2008 initiatives

                1                 1  

2010 charges for 2009 initiatives

            1         8             9  

2010 charges for 2010 initiatives

        2         15             6     23  

Reversal of reserves no longer required

            (3 )   (1 )   (2 )       (1 )   (7 )

2010 payments for 2005 initiatives

    (1 )               (1 )           (2 )

2010 payments for 2006 initiatives

                (3 )               (3 )

2010 payments for 2008 initiatives

    (1 )           (5 )   (1 )           (7 )

2010 payments for 2009 initiatives

            (3 )   (2 )   (8 )       (3 )   (16 )

2010 payments for 2010 initiatives

        (1 )                   (2 )   (3 )

Net activity of discontinued operations

                        (26 )       (26 )

Foreign currency effect on liability balance

                3             1     4  
                                   

Accrued liabilities as of December 31, 2010

        1     2     25     8     8     5     49  

2011 charges for 2006 and prior initiatives

                1                 1  

2011 charges for 2009 Initiatives

                    7             7  

2011 charges for 2010 Initiatives

                13             2     15  

2011 charges for 2011 Initiatives

            21     65     3             89  

Reversal of reserves no longer required

            (1 )   (4 )               (5 )

2011 payments for 2006 and prior initiatives

                (2 )   (1 )           (3 )

2011 payments for 2008 Initiatives

                (1 )   (1 )           (2 )

2011 payments for 2009 Initiatives

            (1 )       (11 )           (12 )

2011 payments for 2010 Initiatives

                (15 )           (6 )   (21 )

2011 payments for 2011 Initiatives

            (7 )   (5 )   (2 )           (14 )

Net activity of discontinued operations

                        (2 )       (2 )

Foreign currency effect on liability balance

            (2 )   (8 )               (10 )
                                   

Accrued liabilities as of December 31, 2011

        1     12     69     3     6     1     92  

2012 charges for 2007 and prior initiatives

                2                 2  

2012 charges for 2009 Initiatives

            1         4             5  

2012 charges for 2010 Initiatives

        1                     1     2  

2012 charges for 2011 Initiatives

            3     12                 15  

2012 charges for 2012 Initiatives

    38         30                 1     69  

Reversal of reserves no longer required

                (16 )               (16 )

2012 payments for 2007 and prior initiatives

                (3 )               (3 )

2012 payments for 2009 Initiatives

            (1 )       (5 )           (6 )

2012 payments for 2010 Initiatives

        (2 )       (1 )           (1 )   (4 )

2012 payments for 2011 Initiatives

            (14 )   (23 )               (37 )

2012 payments for 2012 Initiatives

    (12 )       (6 )                   (18 )

Foreign currency effect on liability balance

    1         2     2     (1 )           4  
                                   

Accrued liabilities as of December 31, 2012

  $ 27   $   $ 27   $ 42   $ 1   $ 6   $ 2   $ 105  
                                   

Current portion of restructuring reserves

  $ 27   $   $ 26   $ 31   $ 1   $ 6   $ 2   $ 93  

Long-term portion of restructuring reserve

            1     11                 12  

Estimated additional future charges for current restructuring projects

                                                 

Estimated additional charges within one year

  $ 3   $   $ 17   $ 80   $   $   $   $ 100  

Estimated additional charges beyond one year

            2                     2  
Cash and non-cash restructuring charges by initiative

Details with respect to cash and noncash restructuring charges for the years ended December 31, 2012, 2011 and 2010 by initiative are provided below (dollars in millions):

Cash charges:

       

2012 charges for 2007 and prior initiatives

  $ 2  

2012 charges for 2009 initiatives

    5  

2012 charges for 2010 initiatives

    2  

2012 charges for 2011 initiatives

    15  

2012 charges for 2012 initiatives

    69  

Reversal of reserves no longer required

    (16 )

Non-cash charges

    15  
       

Total 2012 Restructuring, Impairment and Plant Closing Costs

  $ 92  
       

Cash charges:

       

2011 charges for 2006 and prior initiatives

  $ 1  

2011 charges for 2009 initiatives

    7  

2011 charges for 2010 initiatives

    15  

2011 charges for 2011 initiatives

    89  

Reversal of reserves no longer required

    (5 )

Non-cash charges

    60  
       

Total 2011 Restructuring, Impairment and Plant Closing Costs

  $ 167  
       

Cash charges:

       

2010 charges for 2005 and prior initiatives

  $ 1  

2010 charges for 2008 initiatives

    1  

2010 charges for 2009 initiatives

    9  

2010 charges for 2010 initiatives

    23  

Reversal of reserves no longer required

    (7 )

Non-cash charges

    2  
       

Total 2010 Restructuring, Impairment and Plant Closing Costs

  $ 29