Huntsman Corporation Registration of securities issued in business combination transactions

Registration of securities issued in business combination transactions

RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS (Tables)

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

- Definition

Tabular disclosure of an entity's restructuring reserve that occurred during the period associated with the exit from or disposal of business activities or restructurings for each major type of cost. This element may also include a description of any reversal and other adjustment made during the period to the amount of an accrued liability for restructuring activities. This element may be used to encapsulate the roll forward presentations of an entity's restructuring reserve by type of cost and in total, and explanation of changes that occurred in the period.

+ References + Details