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Annual report pursuant to Section 13 and 15(d)

RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS

v3.3.1.900
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS
12 Months Ended
Dec. 31, 2015
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS Ìý
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS

Ìý

11. RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýAs of DecemberÌý31, 2015, 2014 and 2013, accrued restructuring, impairment and plant closing costs by type of cost and initiative consisted of the following (dollars in millions):

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

Ìý

Ìý

Workforce
reductions(1)

Ìý

Demolition and
decommissioning

Ìý

Non-cancelable
lease costs

Ìý

Other
restructuring
costs

Ìý

Total(2)

Ìý

Accrued liabilities as of JanuaryÌý1, 2013

Ìý

$

90

Ìý

$

�

Ìý

$

15

Ìý

$

�

Ìý

$

105

Ìý

2013 charges for 2012 and prior initiatives

Ìý

Ìý

32

Ìý

Ìý

16

Ìý

Ìý

53

Ìý

Ìý

20

Ìý

Ìý

121

Ìý

2013 charges for 2013 initiatives

Ìý

Ìý

28

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

8

Ìý

Ìý

36

Ìý

Reversal of reserves no longer required

Ìý

Ìý

(22

)

Ìý

�

Ìý

Ìý

(4

)

Ìý

�

Ìý

Ìý

(26

)

2013 payments for 2012 and prior initiatives

Ìý

Ìý

(66

)

Ìý

(16

)

Ìý

(3

)

Ìý

(19

)

Ìý

(104

)

2013 payments for 2013 initiatives

Ìý

Ìý

(10

)

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

(8

)

Ìý

(18

)

Net activity of discontinued operations

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

(3

)

Ìý

�

Ìý

Ìý

(3

)

Foreign currency effect on liability balance

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

2

Ìý

Ìý

�

Ìý

Ìý

2

Ìý

�

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

Accrued liabilities as of DecemberÌý31, 2013

Ìý

Ìý

52

Ìý

Ìý

�

Ìý

Ìý

60

Ìý

Ìý

1

Ìý

Ìý

113

Ìý

Adjustment to PigmentsÌý& Additives opening balance sheet liabilities

Ìý

Ìý

1

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

1

Ìý

2014 charges for 2013 and prior initiatives

Ìý

Ìý

37

Ìý

Ìý

7

Ìý

Ìý

4

Ìý

Ìý

17

Ìý

Ìý

65

Ìý

2014 charges for 2014 initiatives

Ìý

Ìý

64

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

64

Ìý

Reversal of reserves no longer required

Ìý

Ìý

(4

)

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

(1

)

Ìý

(5

)

2014 payments for 2013 and prior initiatives

Ìý

Ìý

(58

)

Ìý

(7

)

Ìý

(8

)

Ìý

(13

)

Ìý

(86

)

2014 payments for 2014 initiatives

Ìý

Ìý

(1

)

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

(1

)

Ìý

(2

)

Net activity of discontinued operations

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

(2

)

Ìý

�

Ìý

Ìý

(2

)

Foreign currency effect on liability balance

Ìý

Ìý

(4

)

Ìý

�

Ìý

Ìý

(6

)

Ìý

�

Ìý

Ìý

(10

)

�

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

Accrued liabilities as of DecemberÌý31, 2014

Ìý

Ìý

87

Ìý

Ìý

�

Ìý

Ìý

48

Ìý

Ìý

3

Ìý

Ìý

138

Ìý

Adjustment to PigmentsÌý& Additives opening balance sheet liabilities

Ìý

Ìý

1

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

1

Ìý

2015 charges for 2014 and prior initiatives

Ìý

Ìý

71

Ìý

Ìý

24

Ìý

Ìý

15

Ìý

Ìý

23

Ìý

Ìý

133

Ìý

2015 charges for 2015 initiatives

Ìý

Ìý

58

Ìý

Ìý

1

Ìý

Ìý

�

Ìý

Ìý

8

Ìý

Ìý

67

Ìý

Reversal of reserves no longer required

Ìý

Ìý

(7

)

Ìý

�

Ìý

Ìý

(6

)

Ìý

�

Ìý

Ìý

(13

)

2015 payments for 2014 and prior initiatives

Ìý

Ìý

(68

)

Ìý

(8

)

Ìý

(17

)

Ìý

(21

)

Ìý

(114

)

2015 payments for 2015 initiatives

Ìý

Ìý

(26

)

Ìý

(1

)

Ìý

�

Ìý

Ìý

(8

)

Ìý

(35

)

Foreign currency effect on liability balance

Ìý

Ìý

(7

)

Ìý

�

Ìý

Ìý

(2

)

Ìý

�

Ìý

Ìý

(9

)

�

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

Accrued liabilities as of DecemberÌý31, 2015

Ìý

$

109

Ìý

$

16

Ìý

$

38

Ìý

$

5

Ìý

$

168

Ìý

�

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

�

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�


Ìý

Ìý

Ìý

(1)ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

The total workforce reduction reserves of $109Ìýmillion relate to the termination of 1,057 positions, of which 972 positions had not been terminated as of DecemberÌý31, 2015.

(2)ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

In December 2015, we prepaid $49Ìýmillion of severance and other restructuring costs related to restructuring programs in our Pigments and Additives, Textile Effects and Performance Products segments. Certain of the severance costs were prepaid to a third party who will distribute the severance payments to affected employees when they are terminated in 2016.

(3)ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

Accrued liabilities remaining at DecemberÌý31, 2015 and 2014 by year of initiatives were as follows (dollars in millions):

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

Ìý

Ìý

DecemberÌý31,

Ìý

Ìý

Ìý

2015

Ìý

2014

Ìý

2013 initiatives and prior

Ìý

$

68Ìý

Ìý

$

75Ìý

Ìý

2014 initiatives

Ìý

Ìý

75Ìý

Ìý

Ìý

63Ìý

Ìý

2015 initiatives

Ìý

Ìý

25Ìý

Ìý

Ìý

�

Ìý

�

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

Total

Ìý

$

168Ìý

Ìý

$

138Ìý

Ìý

�

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

�

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

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

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

Ìý

Ìý

Polyurethanes

Ìý

Performance
Products

Ìý

Advanced
Materials

Ìý

Textile
Effects

Ìý

Pigments and
Additives

Ìý

Discontinued
Operations

Ìý

Corporate
& Other

Ìý

Total

Ìý

Accrued liabilities as of JanuaryÌý1, 2013

Ìý

$

27

Ìý

$

�

Ìý

$

27

Ìý

$

42

Ìý

$

1

Ìý

$

6

Ìý

$

2

Ìý

$

105

Ìý

2013 charges for 2012 and prior initiatives

Ìý

Ìý

5

Ìý

Ìý

�

Ìý

Ìý

38

Ìý

Ìý

73

Ìý

Ìý

4

Ìý

Ìý

�

Ìý

Ìý

1

Ìý

Ìý

121

Ìý

2013 charges for 2013 initiatives

Ìý

Ìý

�

Ìý

Ìý

18

Ìý

Ìý

�

Ìý

Ìý

1

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

17

Ìý

Ìý

36

Ìý

Reversal of reserves no longer required

Ìý

Ìý

(9

)

Ìý

�

Ìý

Ìý

(8

)

Ìý

(9

)

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

(26

)

2013 payments for 2012 and prior initiatives

Ìý

Ìý

(14

)

Ìý

�

Ìý

Ìý

(45

)

Ìý

(41

)

Ìý

(3

)

Ìý

�

Ìý

Ìý

(1

)

Ìý

(104

)

2013 payments for 2013 initiatives

Ìý

Ìý

�

Ìý

Ìý

(7

)

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

(1

)

Ìý

�

Ìý

Ìý

(10

)

Ìý

(18

)

Net activity of discontinued operations

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

(3

)

Ìý

�

Ìý

Ìý

(3

)

Foreign currency effect on liability balance

Ìý

Ìý

�

Ìý

Ìý

(1

)

Ìý

�

Ìý

Ìý

2

Ìý

Ìý

1

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

2

Ìý

�

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

Accrued liabilities as of DecemberÌý31, 2013

Ìý

Ìý

9

Ìý

Ìý

10

Ìý

Ìý

12

Ìý

Ìý

68

Ìý

Ìý

2

Ìý

Ìý

3

Ìý

Ìý

9

Ìý

Ìý

113

Ìý

Adjustment to PigmentsÌý& Additives opening balance sheet liabilities

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

1

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

1

Ìý

2014 charges for 2013 and prior initiatives

Ìý

Ìý

2

Ìý

Ìý

23

Ìý

Ìý

10

Ìý

Ìý

13

Ìý

Ìý

3

Ìý

Ìý

�

Ìý

Ìý

14

Ìý

Ìý

65

Ìý

2014 charges for 2014 initiatives

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

1

Ìý

Ìý

6

Ìý

Ìý

57

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

64

Ìý

Reversal of reserves no longer required

Ìý

Ìý

(1

)

Ìý

�

Ìý

Ìý

(2

)

Ìý

(1

)

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

(1

)

Ìý

(5

)

2014 payments for 2013 and prior initiatives

Ìý

Ìý

(3

)

Ìý

(22

)

Ìý

(14

)

Ìý

(25

)

Ìý

(4

)

Ìý

�

Ìý

Ìý

(18

)

Ìý

(86

)

2014 payments for 2014 initiatives

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

(1

)

Ìý

(1

)

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

(2

)

Net activity of discontinued operations

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

(2

)

Ìý

�

Ìý

Ìý

(2

)

Foreign currency effect on liability balance

Ìý

Ìý

(1

)

Ìý

(2

)

Ìý

(1

)

Ìý

(6

)

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

(10

)

�

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

Accrued liabilities as of DecemberÌý31, 2014

Ìý

Ìý

6

Ìý

Ìý

9

Ìý

Ìý

5

Ìý

Ìý

54

Ìý

Ìý

59

Ìý

Ìý

1

Ìý

Ìý

4

Ìý

Ìý

138

Ìý

Adjustment to PigmentsÌý& Additives opening balance sheet liabilities

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

1

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

1

Ìý

2015 charges for 2014 and prior initiatives

Ìý

Ìý

2

Ìý

Ìý

3

Ìý

Ìý

1

Ìý

Ìý

42

Ìý

Ìý

77

Ìý

Ìý

�

Ìý

Ìý

8

Ìý

Ìý

133

Ìý

2015 charges for 2015 initiatives

Ìý

Ìý

17

Ìý

Ìý

8

Ìý

Ìý

5

Ìý

Ìý

2

Ìý

Ìý

34

Ìý

Ìý

�

Ìý

Ìý

1

Ìý

Ìý

67

Ìý

Reversal of reserves no longer required

Ìý

Ìý

(4

)

Ìý

(1

)

Ìý

�

Ìý

Ìý

(7

)

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

(1

)

Ìý

(13

)

2015 payments for 2014 and prior initiatives

Ìý

Ìý

(4

)

Ìý

(8

)

Ìý

(2

)

Ìý

(34

)

Ìý

(59

)

Ìý

�

Ìý

Ìý

(7

)

Ìý

(114

)

2015 payments for 2015 initiatives

Ìý

Ìý

(11

)

Ìý

(1

)

Ìý

(5

)

Ìý

(1

)

Ìý

(16

)

Ìý

�

Ìý

Ìý

(1

)

Ìý

(35

)

Foreign currency effect on liability balance

Ìý

Ìý

(1

)

Ìý

(1

)

Ìý

�

Ìý

Ìý

(1

)

Ìý

(6

)

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

(9

)

�

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

Accrued liabilities as of DecemberÌý31, 2015

Ìý

$

5

Ìý

$

9

Ìý

$

4

Ìý

$

55

Ìý

$

90

Ìý

$

1

Ìý

$

4

Ìý

$

168

Ìý

�

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

�

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

â€� Ìý

â€� Ìý

�

Current portion of restructuring reserves

Ìý

$

4

Ìý

$

9

Ìý

$

�

Ìý

$

16

Ìý

$

83

Ìý

$

1

Ìý

$

4

Ìý

$

117

Ìý

Long-term portion of restructuring reserve

Ìý

Ìý

1

Ìý

Ìý

�

Ìý

Ìý

4

Ìý

Ìý

39

Ìý

Ìý

7

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

51

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýDetails with respect to cash and noncash restructuring charges for the years ended DecemberÌý31, 2015, 2014 and 2013 by initiative are provided below (dollars in millions):

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

Cash charges:

Ìý

Ìý

Ìý

Ìý

2015 charges for 2014 and prior initiatives

Ìý

$

133

Ìý

2015 charges for 2015 initiatives

Ìý

Ìý

67

Ìý

Reversal of reserves no longer required

Ìý

Ìý

(13

)

Pension-related settlement charges

Ìý

Ìý

3

Ìý

Accelerated depreciation

Ìý

Ìý

74

Ìý

Other non-cash charges

Ìý

Ìý

38

Ìý

�

�

â€� Ìý

â€� Ìý

�

Total 2015 Restructuring, Impairment and Plant Closing Costs

Ìý

$

302

Ìý

�

�

â€� Ìý

â€� Ìý

�

�

�

â€� Ìý

â€� Ìý

�

Cash charges:

Ìý

Ìý

Ìý

Ìý

2014 charges for 2013 and prior initiatives

Ìý

$

65

Ìý

2014 charges for 2014 initiatives

Ìý

Ìý

64

Ìý

Reversal of reserves no longer required

Ìý

Ìý

(5

)

Pension-related settlement charges

Ìý

Ìý

2

Ìý

Non-cash charges

Ìý

Ìý

32

Ìý

�

�

â€� Ìý

â€� Ìý

�

Total 2014 Restructuring, Impairment and Plant Closing Costs

Ìý

$

158

Ìý

�

�

â€� Ìý

â€� Ìý

�

�

�

â€� Ìý

â€� Ìý

�

Cash charges:

Ìý

Ìý

Ìý

Ìý

2013 charges for 2012 and prior initiatives

Ìý

$

121

Ìý

2013 charges for 2013 initiatives

Ìý

Ìý

36

Ìý

Reversal of reserves no longer required

Ìý

Ìý

(26

)

Pension-related settlement charges

Ìý

Ìý

7

Ìý

Non-cash charges

Ìý

Ìý

13

Ìý

�

�

â€� Ìý

â€� Ìý

�

Total 2013 Restructuring, Impairment and Plant Closing Costs

Ìý

$

151

Ìý

�

�

â€� Ìý

â€� Ìý

�

�

�

â€� Ìý

â€� Ìý

�

2015 RESTRUCTURING ACTIVITIES

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýIn June 2015, our Polyurethanes segment initiated a restructuring program in Europe. In connection with this restructuring program, we recorded restructuring expense of $13Ìýmillion during 2015 related primarily to workforce reductions. All expected charges have been incurred as of the end of 2015.

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýIn 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. During 2015, we recorded cash charges of $8Ìýmillion primarily related to workforce reductions. We expect to incur charges through the first quarter of 2016 associated with this initiative.

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýIn June 2015, our Advanced Materials segment initiated a restructuring program in Europe. In connection with this restructuring program, we recorded restructuring expense of $11Ìýmillion during 2015 related primarily to workforce reductions and accelerated depreciation recorded as restructuring, impairment and plant closing costs. All expected charges have been incurred as of the end of 2015.

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýOn SeptemberÌý27, 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 2015, we recorded charges of $9Ìýmillion for non-cancelable long-term contract termination costs, $21Ìýmillion for decommissioning and $1Ìýmillion of other restructuring charges associated with this initiative. During the fourth quarter of 2015, we settled certain of our obligations under these long-term contracts and recorded a restructuring charge of $14Ìýmillion. In addition, we recorded charges of $6Ìýmillion associated with other initiatives.

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýOn DecemberÌý1, 2014, we announced that we are taking significant action to improve the global competitiveness of our Pigments and Additives segment. As part of a comprehensive restructuring program, we are reducing our workforce by approximately 900 positions. In connection with this restructuring program, during 2015, our Pigments and Additives segment recorded charges of $61Ìýmillion for workforce reductions, $3Ìýmillion for pension related charges and $15Ìýmillion in other restructuring costs associated with this initiative. We expect to incur charges related to this program through the middle of 2016.

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýOn FebruaryÌý12, 2015, we announced a plan to close the 'black end' manufacturing operations and ancillary activities at our Calais, France site, which will reduce our titanium dioxide capacity by approximately 100 kilotons, or 13% of our European titanium dioxide capacity. In connection with this announcement, we began to accelerate depreciation on the affected assets and recorded accelerated depreciation in 2015 of $68Ìýmillion as restructuring, impairment and plant closing costs. In addition, during 2015, we recorded charges of $30Ìýmillion primarily for workforce reductions and non-cash charges of $17Ìýmillion. We expect to incur charges related to this program through the end of 2016.

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýOn MarchÌý4, 2015, we announced plans to restructure our color pigments business, another step in our previously announced plan to significantly restructure our global Pigments and Additives segment, and recorded restructuring expense of approximately $4Ìýmillion during 2015 primarily related to workforce reductions. We expect to incur charges related to this program through 2016.

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýDuring the fourth quarter of 2015, we determined that the South African asset group of our Pigments and Additives segment was impaired and recorded an impairment charge of $19Ìýmillion.

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýDuring 2015, our Corporate and other segment recorded charges of $8Ìýmillion primarily related to a reorganization of our global information technology organization. We expect to incur charges related to these initiatives through the end of 2016.

2014 RESTRUCTURING ACTIVITIES

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýIn connection with a September 2014 announcement of a feasibility study into a MDI production expansion at our Geismar, Louisiana facility, we concluded that certain capitalized engineering costs associated with a previously planned MDI production expansion at our Rotterdam, The Netherlands facility were impaired and our Polyurethanes segment recorded a noncash impairment charge of $16Ìýmillion during 2014.

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýDuring 2013, our Performance Products segment initiated a restructuring program to refocus its surfactants business in Europe. In connection with this program, in 2014 we completed the sale of our European commodity surfactants business, including the ethoxylation facility in Lavera, France to Wilmar. In addition, Wilmar has entered into a multi-year arrangement to purchase certain sulfated surfactant products from our facilities in St.ÌýMihiel, France and Castiglione delle Stiviere, Italy. Additionally, in 2014 we ceased production at our Patrica, Italy surfactants facility. During 2014, we recorded charges of $23Ìýmillion primarily related to workforce reductions.

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýDuring 2014, our Advanced Materials segment recorded charges of $11Ìýmillion primarily related to workforce reductions with our global transformational change program designed to improve the segment's manufacturing efficiencies, enhance its commercial excellence and improve its long-term global competitiveness.

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýDuring 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 program, during 2014, our Textile Effects segment recorded charges of $19Ìýmillion, including a $9Ìýmillion noncash charge for a pension settlement loss. In June 2014, we announced plans for the closure of our Qingdao, China plant, which was completed during 2015. During 2014, we recorded charges of $6Ìýmillion primarily related to workforce reductions related to this initiative.

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýOn DecemberÌý1, 2014, we announced that we are taking significant action to improve the global competitiveness of our Pigments and Additives segment. As part of a comprehensive restructuring program, we are reducing our workforce by approximately 900 positions. In connection with this restructuring program, we recorded restructuring expense of $57Ìýmillion in the fourth quarter of 2014 related primarily to workforce reductions.

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýOn FebruaryÌý12, 2015, we announced plans to reduce our titanium dioxide capacity by approximately 100 kilotons by closing specific operations at our Calais, France facility, subject to consultation with employees and appropriate representative groups. This plan is in addition to that announced on DecemberÌý1, 2014.

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýDuring 2014, our Corporate and other segment recorded charges of $13Ìýmillion primarily related to the reorganization of our global information technology organization.

2013 RESTRUCTURING ACTIVITIES

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýDuring 2012, our Polyurethanes segment began implementing a restructuring program to reduce annualized fixed costs. In connection with this program, we recorded cash charges of $5Ìýmillion and reversed charges of $9Ìýmillion during 2013 primarily for workforce reductions. Our Polyurethanes segment also recorded pension-related charges of $6Ìýmillion during 2013 related to this program.

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýDuring 2013, our Performance Products segment recorded charges of $13Ìýmillion primarily related to workforce reductions in association with plans to refocus our surfactants business in Europe and $5Ìýmillion primarily related to workforce reductions in our Australian operation.

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýDuring the fourth quarter of 2012, our Advanced Materials segment began implementing a global transformational change program, subject to consultation with relevant employee representatives, designed to improve the segment's manufacturing efficiencies, enhance commercial excellence and improve its long-term global competitiveness. During 2013, we recorded cash charges of $38Ìýmillion and noncash charges of $4Ìýmillion and reversed charges of $8Ìýmillion.

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýDuring 2011, our Textile Effects segment began implementing a significant restructuring program, 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 segment's long-term global competitiveness. In connection with this program, during 2013, we recorded cash charges of $73Ìýmillion, a noncash charge of $9Ìýmillion for a pension settlement loss and reversed charges of $5Ìýmillion.

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýDuring 2013, our Corporate and other segment recorded charges of $18Ìýmillion primarily related to workforce reductions in association with a reorganization of our global information technology organization.

Ìý