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Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS (Tables)

v2.4.0.8
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS (Tables)
6 Months Ended
Jun. 30, 2013
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS Ìý
Accrued restructuring costs by type of cost and initiative
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):


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

Accrued liabilities as of January 1, 2013

$ 90 $ � $ 15 $ � $ 105

2013 charges for 2009 initiatives

� � � 1 1

2013 charges for 2011 initiatives

1 8 19 2 30

2013 charges for 2012 initiatives

21 � � 10 31

2013 charges for 2013 initiatives

13 � � 1 14

Reversal of reserves no longer required

(9 ) � � � (9 )

2013 payments for 2008 and prior initiatives

(1 ) � � � (1 )

2013 payments for 2009 initiatives

(1 ) � � (1 ) (2 )

2013 payments for 2011 initiatives

(7 ) (8 ) (1 ) (2 ) (18 )

2013 payments for 2012 initiatives

(18 ) � � (10 ) (28 )

2013 payments for 2013 initiatives

(2 ) � � (1 ) (3 )

Net activity of discontinued operations

� � (2 ) � (2 )

Foreign currency effect on liability balance

(3 ) � � � (3 )

Accrued liabilities as of June 30, 2013

$ 84 $ � $ 31 $ � $ 115

(1)
The workforce reduction reserves relate to the termination of 814 positions, of which 683 positions had not been terminated as of June 30, 2013.

(2)
Accrued liabilities by initiatives were as follows (dollars in millions):


June 30,
2013
December 31,
2012

2008 and prior initiatives

$ 1 $ 2

2009 initiatives

5 7

2010 initiatives

9 9

2011 initiatives

41 34

2012 initiatives

48 53

2013 initiatives

11 �

Total

$ 115 $ 105
Accrued liabilities by initiative
Ìý
Accrued liabilities by initiatives were as follows (dollars in millions):

Ìý
Ìý JuneÌý30,
2013
Ìý DecemberÌý31,
2012
Ìý

2008 and prior initiatives

Ìý $ 1 Ìý $ 2 Ìý

2009 initiatives

Ìý Ìý 5 Ìý Ìý 7 Ìý

2010 initiatives

Ìý Ìý 9 Ìý Ìý 9 Ìý

2011 initiatives

Ìý Ìý 41 Ìý Ìý 34 Ìý

2012 initiatives

Ìý Ìý 48 Ìý Ìý 53 Ìý

2013 initiatives

Ìý Ìý 11 Ìý Ìý â€� Ìý
Ìý Ìý Ìý Ìý Ìý Ìý

Total

Ìý $ 115 Ìý $ 105 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý
Details with respect to reserves for restructuring, impairment and plant closing costs, provided by segment and initiative

ÌýDetails with respect to our reserves for restructuring, impairment and plant closing costs are provided below by segment and initiative (dollars in millions):

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

Accrued liabilities as of JanuaryÌý1, 2013

Ìý $ 27 Ìý $ â€� Ìý $ 27 Ìý $ 42 Ìý $ 1 Ìý $ 6 Ìý $ 2 Ìý $ 105 Ìý

2013 charges for 2009 initiatives

Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý 1 Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý 1 Ìý

2013 charges for 2011 initiatives

Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý 30 Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý 30 Ìý

2013 charges for 2012 initiatives

Ìý Ìý 3 Ìý Ìý â€� Ìý Ìý 28 Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý 31 Ìý

2013 charges for 2013 initiatives

Ìý Ìý â€� Ìý Ìý 4 Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý 2 Ìý Ìý â€� Ìý Ìý 8 Ìý Ìý 14 Ìý

Reversal of reserves no longer required

Ìý Ìý (5 ) Ìý â€� Ìý Ìý (2 ) Ìý (2 ) Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý (9 )

2013 payments for 2008 and prior initiatives

Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý (1 ) Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý (1 )

2013 payments for 2009 initiatives

Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý (2 ) Ìý â€� Ìý Ìý â€� Ìý Ìý (2 )

2013 payments for 2011 initiatives

Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý (18 ) Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý (18 )

2013 payments for 2012 initiatives

Ìý Ìý (7 ) Ìý â€� Ìý Ìý (20 ) Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý (1 ) Ìý (28 )

2013 payments for 2013 initiatives

Ìý Ìý â€� Ìý Ìý (2 ) Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý (1 ) Ìý (3 )

Net activity of discontinued operations

Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý (2 ) Ìý â€� Ìý Ìý (2 )

Foreign currency effect on liability balance

Ìý Ìý (1 ) Ìý â€� Ìý Ìý (1 ) Ìý (1 ) Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý (3 )
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Accrued liabilities as of JuneÌý30, 2013

Ìý $ 17 Ìý $ 2 Ìý $ 32 Ìý $ 50 Ìý $ 2 Ìý $ 4 Ìý $ 8 Ìý $ 115 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Current portion of restructuring reserves

Ìý $ 10 Ìý $ 2 Ìý $ 30 Ìý $ 27 Ìý $ 2 Ìý $ 4 Ìý $ 8 Ìý $ 83 Ìý

Long-term portion of restructuring reserves

Ìý Ìý 7 Ìý Ìý â€� Ìý Ìý 2 Ìý Ìý 23 Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý 32 Ìý

Estimated additional future charges for current restructuring projects

Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Estimated additional charges within one year

Ìý Ìý â€� Ìý Ìý 1 Ìý Ìý 7 Ìý Ìý 66 Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý 74 Ìý

Estimated additional charges beyond one year

Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý Ìý â€� Ìý
Cash and non-cash restructuring charges by initiative

Details with respect to cash and non-cash restructuring charges for the periods ended JuneÌý30, 2013 and 2012 by initiative are provided below (dollars in millions):

Ìý
Ìý Three months
ended
JuneÌý30, 2013
Ìý Six months
ended
JuneÌý30, 2013
Ìý

Cash charges:

Ìý Ìý Ìý Ìý Ìý Ìý Ìý

2013 charges for 2009 initiatives

Ìý $ 1 Ìý $ 1 Ìý

2013 charges for 2011 initiatives

Ìý Ìý 9 Ìý Ìý 30 Ìý

2013 charges for 2012 initiatives

Ìý Ìý 8 Ìý Ìý 31 Ìý

2013 charges for 2013 initiatives

Ìý Ìý 12 Ìý Ìý 14 Ìý

Pension related charges

Ìý Ìý 1 Ìý Ìý 5 Ìý

Reversal of reserves no longer required

Ìý Ìý (2 ) Ìý (9 )

Non-cash charges

Ìý Ìý â€� Ìý Ìý 1 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý

Total 2013 Restructuring, Impairment and Plant Closing Costs

Ìý $ 29 Ìý $ 73 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý


Ìý

Ìý
Ìý Three months
ended
JuneÌý30, 2012
Ìý Six months
ended
JuneÌý30, 2012
Ìý

Cash charges:

Ìý Ìý Ìý Ìý Ìý Ìý Ìý

2012 charges for 2007 and prior initiatives

Ìý $ â€� Ìý $ 2 Ìý

2012 charges for 2009 initiatives

Ìý Ìý 3 Ìý Ìý 4 Ìý

2012 charges for 2010 initiatives

Ìý Ìý 1 Ìý Ìý 1 Ìý

2012 charges for 2011 initiatives

Ìý Ìý 1 Ìý Ìý 4 Ìý

2012 charges for 2012 initiatives

Ìý Ìý 1 Ìý Ìý 6 Ìý

Reversal of reserves no longer required

Ìý Ìý (1 ) Ìý (13 )

Non-cash charges

Ìý Ìý â€� Ìý Ìý 1 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý

Total 2012 Restructuring, Impairment and Plant Closing Costs

Ìý $ 5 Ìý $ 5 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý