6. RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS
Ìý
As of September 30, 2017 and December 31, 2016, accrued restructuring costs of continuing operations by type of cost and initiative consisted of the following (dollars in millions):
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Non-cancelable
|
Ìý
|
Other
|
Ìý
|
Ìý
|
|
Ìý
|
Ìý
|
Workforce
|
Ìý
|
DemolitionÌýand
|
Ìý
|
leaseÌýandÌýcontract
|
Ìý
|
restructuring
|
Ìý
|
Ìý
|
|
Ìý
|
ÌýÌýÌýÌý
|
reductions(1)
|
ÌýÌýÌýÌý
|
decommissioning
|
ÌýÌýÌýÌý
|
terminationÌýcosts
|
ÌýÌýÌýÌý
|
costs
|
ÌýÌýÌýÌý
|
Total(2)
|
|
Accrued liabilities as of January 1, 2017
|
Ìý
|
$
|
Ìý4
|
Ìý
|
$
|
19
|
Ìý
|
$
|
40
|
Ìý
|
$
|
Ìý5
|
Ìý
|
$
|
68
|
|
2017 charges for 2016 and prior initiatives
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìý5
|
Ìý
|
Ìý
|
Ìý1
|
Ìý
|
Ìý
|
Ìý1
|
Ìý
|
Ìý
|
Ìý7
|
|
2017 charges for 2017 initiatives
|
Ìý
|
Ìý
|
Ìý6
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìý6
|
|
2017 payments for 2016 and prior initiatives
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
(21)
|
Ìý
|
Ìý
|
(1)
|
Ìý
|
Ìý
|
(2)
|
Ìý
|
Ìý
|
(24)
|
|
2017 payments for 2017 initiatives
|
Ìý
|
Ìý
|
(2)
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
(2)
|
|
Foreign currency effect on liability balance
|
Ìý
|
Ìý
|
Ìý1
|
Ìý
|
Ìý
|
Ìý1
|
Ìý
|
Ìý
|
Ìý2
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìý4
|
|
Accrued liabilities as of September 30, 2017
|
Ìý
|
$
|
Ìý9
|
Ìý
|
$
|
Ìý4
|
Ìý
|
$
|
42
|
Ìý
|
$
|
Ìý4
|
Ìý
|
$
|
59
|
|
(1)
|
|
The workforce reduction reserves relate to the termination of 163 positions, of which 116Ìýpositions had not been terminated as of September 30, 2017.
|
Ìý
|
(2)
|
|
Accrued liabilities by initiatives were as follows (dollars in millions):
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
|
Ìý
|
Ìý
|
SeptemberÌý30,Ìý
|
Ìý
|
DecemberÌý31,Ìý
|
|
Ìý
|
ÌýÌýÌýÌý
|
2017
|
ÌýÌýÌýÌý
|
2016
|
|
2015 and prior initiatives
|
Ìý
|
$
|
55
|
Ìý
|
$
|
67
|
|
2016 initiatives
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìý1
|
|
2017 initiatives
|
Ìý
|
Ìý
|
Ìý4
|
Ìý
|
Ìý
|
Ìýâ€�
|
|
Total
|
Ìý
|
$
|
59
|
Ìý
|
$
|
68
|
Ìý
Details with respect to our reserves for restructuring, impairment and plant closing costs are provided below by segment and initiative (dollars in millions):
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
|
Performance
|
Ìý
|
Advanced
|
Ìý
|
Textile
|
Ìý
|
Corporate
|
Ìý
|
Ìý
|
Ìý
|
|
Ìý
|
ÌýÌýÌýÌý
|
Polyurethanes
|
ÌýÌýÌýÌý
|
Products
|
ÌýÌýÌýÌý
|
Materials
|
ÌýÌýÌýÌý
|
Effects
|
ÌýÌýÌýÌý
|
andÌýother
|
ÌýÌýÌýÌý
|
Total
|
Ìý
|
|
Accrued liabilities as of January 1, 2017
|
Ìý
|
$
|
Ìý2
|
Ìý
|
$
|
Ìýâ€�
|
Ìý
|
$
|
Ìý3
|
Ìý
|
$
|
61
|
Ìý
|
$
|
Ìý2
|
Ìý
|
$
|
68
|
Ìý
|
|
2017 charges for 2016 and prior initiatives
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìý7
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìý7
|
Ìý
|
|
2017 charges for 2017 initiatives
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìý6
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìý6
|
Ìý
|
|
2017 payments for 2016 and prior initiatives
|
Ìý
|
Ìý
|
(1)
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
(23)
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
(24)
|
Ìý
|
|
2017 payments for 2017 initiatives
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
(2)
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
(2)
|
Ìý
|
|
Foreign currency effect on liability balance
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìý4
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìý4
|
Ìý
|
|
Accrued liabilities as of September 30, 2017
|
Ìý
|
$
|
Ìý1
|
Ìý
|
$
|
Ìýâ€�
|
Ìý
|
$
|
Ìý3
|
Ìý
|
Ìý
|
53
|
Ìý
|
$
|
Ìý2
|
Ìý
|
$
|
59
|
Ìý
|
|
Ìý
|
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
|
$
|
Ìý1
|
Ìý
|
$
|
Ìýâ€�
|
Ìý
|
$
|
Ìý2
|
Ìý
|
$
|
14
|
Ìý
|
$
|
Ìý2
|
Ìý
|
$
|
19
|
Ìý
|
|
Long-term portion of restructuring reserves
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìý1
|
Ìý
|
Ìý
|
39
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
40
|
Ìý
|
Ìý
Details with respect to cash and noncash restructuring charges from continuing operations for the three and nine months ended September 30, 2017 and 2016 by initiative are provided below (dollars in millions):
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
|
Ìý
|
ÌýÌýÌýÌý
|
Three months endedÌýSeptemberÌý30,Ìý2017
|
Ìý
|
Nine months endedÌýSeptemberÌý30,Ìý2017
|
|
Cash charges:
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
|
2017 charges for 2016 and prior initiatives
|
Ìý
|
$
|
Ìý2
|
Ìý
|
$
|
Ìý7
|
|
2017 charges for 2017 initiatives
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìý6
|
|
Pension-related charges
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìý1
|
|
Accelerated depreciation
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìý2
|
|
Gain on sale of land
|
Ìý
|
Ìý
|
(1)
|
Ìý
|
Ìý
|
(3)
|
|
Total 2017 Restructuring, Impairment and Plant Closing Costs
|
Ìý
|
$
|
Ìý1
|
Ìý
|
$
|
13
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
|
Ìý
|
ÌýÌýÌýÌý
|
Three months ended SeptemberÌý30,Ìý2016
|
Ìý
|
Nine months ended SeptemberÌý30,Ìý2016
|
|
Cash charges:
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
|
2016 charges for 2015 and prior initiatives
|
Ìý
|
$
|
40
|
Ìý
|
$
|
56
|
|
2016 charges for 2016 initiatives
|
Ìý
|
Ìý
|
Ìý1
|
Ìý
|
Ìý
|
Ìý4
|
|
Gain on sale of land
|
Ìý
|
Ìý
|
(3)
|
Ìý
|
Ìý
|
(3)
|
|
Reversal of reserves no longer required
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
(1)
|
|
Total 2016 Restructuring, Impairment and Plant Closing Costs
|
Ìý
|
$
|
38
|
Ìý
|
$
|
56
|
Ìý
2017 RESTRUCTURING ACTIVITIES
Ìý
In September 2011, we implemented a significant restructuring of our Textile Effects segment, including the closure of our production facilities and business support offices in Basel, Switzerland (the â€�2011 Textile Effects Restructuringâ€�). In connection with this restructuring plan, during the nine months ended SeptemberÌý30, 2017, our Textile Effects segment recorded restructuring expense of approximately $4 million associated with this initiative. We expect to receive an income of upfront installment payment from the sale of property at the Basel, Switzerland site of approximately $5 million through the end of 2017 to cover our large portion of contract settlement payments.
Ìý
During the first quarter of 2017, we implemented the first phase of a restructuring program to improve competitiveness in our Textile Effects segment. In connection with this restructuring program, we recorded restructuring expense of $7 million in the nine months ended September 30, 2017 related primarily to workforce reductions. We expect to incur additional charges of approximately $2 million through the end 2017.
Ìý
2016 RESTRUCTURING ACTIVITIES
Ìý
In December 2015, our Performance Products segment announced plans for a reorganization of its commercial and technical functions and a refocused divisional business strategy to better position the segment for growth in coming years. In addition, a program was launched to capture growth opportunities, improve manufacturing cost efficiency and reduce inventories. In connection with this restructuring program, we recorded restructuring expense of $16Ìýmillion in the nine months ended SeptemberÌý30, 2016.
In connection with the 2011 Textile Effects Restructuring, during the nine months ended SeptemberÌý30, 2016, our Textile Effects segment recorded charges of $8Ìýmillion for non‑cancelable long‑term contract termination costs and $28Ìýmillion for decommissioning associated with this initiative.