RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS
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Jun. 30, 2013
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RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS |
6. RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS As of June 30, 2013 and December 31, 2012, accrued restructuring costs by type of cost and initiative consisted of the following (dollars in millions):
Details with respect to our reserves for restructuring, impairment and plant closing costs are provided below by segment and initiative (dollars in millions):
Details with respect to cash and non-cash restructuring charges for the periods ended June 30, 2013 and 2012 by initiative are provided below (dollars in millions):
2013 RESTRUCTURING ACTIVITIES During the six months ended June 30, 2013, our Polyurethanes segment recorded charges of $3 million and reversed charges of $5 million related to workforce reductions in association with our program to reduce annualized fixed costs by approximately $75 million. Our Polyurethanes segment also recorded pension-related settlement charges of $5 million related to this program. During the six months ended June 30, 2013, our Performance Products segment recorded charges of $4 million primarily related to workforce reductions in our Australian operation. We expect to incur additional charges of $1 million through December 2013, also related to this initiative. During the six months ended June 30, 2013, our Advanced Materials segment recorded charges of $28 million primarily related to workforce reductions in association with our global transformational change program designed to improve the segment's manufacturing efficiencies. Our Advanced Materials segment also recorded a $1 million noncash charge for asset impairments and reversed charges of $2 million related to this initiative. We expect to incur additional charges of $7 million through March 2014, also related to this initiative. On September 27, 2011, we announced plans to implement a significant restructuring of our Textile Effects business, including the closure of our production facilities and business support offices in Basel, Switzerland, as part of an ongoing strategic program aimed at improving the Textile Effects segment's long-term global competitiveness. In connection with this plan, during the six months ended June 30, 2013, our Textile Effects segment recorded charges of $19 million for long-term fixed cost contracts, $8 million for decommissioning, $2 million for other restructuring and $1 million for workforce reduction and reversed charges of $2 million related to workforce reduction associated with this initiative. We expect to incur additional charges of $66 million through March 2014, also related to this initiative. During the six months ended June 30, 2013, our Pigments segment recorded charges of $3 million primarily related to the closure of our Grimsby, U.K. plant. During the six months ended June 30, 2013, our Corporate and other segment recorded charges of $8 million primarily related to workforce reductions in association with a reorganization of our global information technology organization. 2012 RESTRUCTURING ACTIVITIES During the six months ended June 30, 2012, our Polyurethanes segment recorded charges of $5 million primarily related to fixed cost reduction programs. During the six months ended June 30, 2012, our Advanced Materials segment recorded charges of $3 million primarily related to the reorganization of our global business structure and the relocation of our divisional headquarters from Basel, Switzerland to The Woodlands, Texas. On September 27, 2011, we announced plans to implement a significant restructuring of our Textile Effects segment, including the closure of our production facilities and business support offices in Basel, Switzerland, as part of an ongoing strategic program aimed at improving the Textile Effects segment's long-term global competitiveness. In connection with this plan, during the six months ended June 30, 2012, we recorded restructuring charges of $3 million and a $1 million noncash charge for asset impairments. In addition, during the six months ended June 30, 2012, our Textile Effects segment recorded charges of $2 million primarily related to the closure of our St. Fons, France facility and a global transfer pricing initiative. Also during the six months ended June 30, 2012, we reversed $13 million of reserves that were primarily related to workforce reductions that were no longer required at our production facility in Langweid, Germany, the consolidation of manufacturing activities and processes at our site in Basel, Switzerland and closure of our production facilities in Basel, Switzerland. During the six months ended June 30, 2012, our Pigments segment recorded charges of $3 million related to the closure of our Grimsby, U.K. plant. |