RETIREMENT PLANS (Tables)

12 Months Ended

Dec. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Schedule of Change in Benefit Obligation and Plan Assets, Funded Status and Amounts Recognized in Balance Sheet and Accumulated Other Comprehensive Income (Loss)

Below is a summary balance sheet of the change in plan assets during 2016 and 2015, the funded status of the plans, amounts recognized in the Consolidated Statements of Financial Position, and a summary of amounts recognized in accumulated other comprehensive income.

Summary of Changes



	Pension Plans												Postretirement Benefit Plans
	2016						2015						2016			2015
(Dollars in millions)	U.S.			Non-U.S.			U.S.			Non-U.S.
Change in projected benefit obligation:
Benefit obligation, beginning of year	$	2,262		$	763		$	2,356		$	867		$	853		$	1,014
Service cost	39			12			39			15			5			8
Interest cost	74			23			87			26			27			39
Actuarial (gain) loss	38			123			(31		)	(50		)	12			(13		)
Curtailment gain	—			—			—			(4		)	—			(2		)
Settlement	(54		)	—			—			—			—			—
Acquisitions	—			—			—			(10		)	—			—
Plan amendments and other	2			—			—			—			(106		)	(140		)
Plan participants' contributions	—			1			—			2			14			15
Effect of currency exchange	—			(100		)	—			(61		)	—			(2		)
Federal subsidy on benefits paid	—			—			—			—			1			1
Benefits paid	(220		)	(21		)	(189		)	(22		)	(69		)	(67		)
Benefit obligation, end of year	$	2,141		$	801		$	2,262		$	763		$	737		$	853
Change in plan assets:
Fair value of plan assets, beginning of year	$	1,887		$	650		$	1,968		$	699		$	157		$	176
Actual return on plan assets	142			103			(23		)	7			12			(1		)
Effect of currency exchange	—			(84		)	—			(48		)	—			—
Company contributions	204			18			131			21			39			34
Reserve for third party contributions	—			—			—			—			(5		)	(1		)
Plan participants' contributions	—			1			—			2			14			15
Benefits paid	(220		)	(21		)	(189		)	(22		)	(69		)	(67		)
Federal subsidy on benefits paid	—			—			—			—			1			1
Settlements	(54		)	—			—			—			—			—
Acquisitions	—			—			—			(9		)	—			—
Fair value of plan assets, end of year	$	1,959		$	667		$	1,887		$	650		$	149		$	157
Funded status at end of year	$	(182	)	$	(134	)	$	(375	)	$	(113	)	$	(588	)	$	(696	)
Amounts recognized in the Consolidated Statements of Financial Position consist of:
Other noncurrent assets	$	3		$	—		$	—		$	7		$	30		$	19
Current liabilities	(7		)	(1		)	(3		)	—			(42		)	(43		)
Post-employment obligations	(178		)	(133		)	(372		)	(120		)	(576		)	(672		)
Net amount recognized, end of year	$	(182	)	$	(134	)	$	(375	)	$	(113	)	$	(588	)	$	(696	)
Accumulated benefit obligation	$	2,030		$	753		$	2,146		$	721
Amounts recognized in accumulated other comprehensive income consist of:
Prior service (credit) cost	$	(3	)	$	2		$	(10	)	$	2		$	(262	)	$	(200	)

Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block]

Information for pension plans with projected benefit obligations in excess of plan assets:



(Dollars in millions)	2016				2015
	U.S.		Non-U.S.		U.S.		Non-U.S.
Projected benefit obligation	$	1,865	$	801	$	2,262	$	622
Fair value of plan assets	1,680		667		1,887		501

Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block]

Information for pension plans with accumulated benefit obligations in excess of plan assets:



(Dollars in millions)	2016				2015
	U.S.		Non-U.S.		U.S.		Non-U.S.
Projected benefit obligation	$	1,865	$	557	$	2,262	$	622
Accumulated benefit obligation	1,754		535		2,146		584
Fair value of plan assets	1,680		434		1,887		501

Schedule of Benefit Cost and Amounts Recognized in Other Comprehensive Income

Components of net periodic benefit (credit) cost were as follows:

Summary of Benefit Costs and Other Amounts Recognized in Other Comprehensive Income



	Pension Plans																		Postretirement Benefit Plans
	2016						2015						2014						2016			2015			2014
(Dollars in millions)	U.S.			Non-U.S.			U.S.			Non-U.S.			U.S.			Non-U.S.
Components of net periodic benefit (credit) cost:
Service cost	$	39		$	12		$	39		$	15		$	40		$	14		$	5		$	8		$	8
Interest cost	74			23			87			26			100			31			27			39			45
Expected return on plan assets	(138		)	(32		)	(148		)	(37		)	(143		)	(38		)	(6		)	(6		)	(7		)
Curtailment gain ⁽¹⁾	—			—			—			(7		)	—			—			—			(2		)	—
Amortization of:
Prior service cost (credit)	(4		)	—			(4		)	1			(4		)	—			(44		)	(24		)	(24		)
Mark-to-market pension and other postretirement benefits (gain) loss, net	34			52			140			(20		)	166			95			11			(5		)	43
Net periodic benefit (credit) cost	$	5		$	55		$	114		$	(22	)	$	159		$	102		$	(7	)	$	10		$	65
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Curtailment gain	$	—		$	—		$	—		$	(3	)	$	—		$	—		$	—		$	—		$	—
Current year prior service credit (cost)	(3		)	—			—			—			—			—			106			140			—
Amortization of:
Prior service cost (credit)	(4		)	—			(4		)	1			(4		)	—			(44		)	(24		)	(24		)
Total	$	(7	)	$	—		$	(4	)	$	(2	)	$	(4	)	$	—		$	62		$	116		$	(24	)


⁽¹⁾	Gain of $7 million in 2015 in the Fibers segment related to the remeasurement of the Workington, UK pension plan, triggered by the closure of the Workington, UK acetate tow manufacturing facility.

Schedule of Assumptions Used to Develop the Projected Benefit Obligation

The assumptions used to develop the projected benefit obligation for the Company's significant U.S. and non-U.S. defined benefit pension plans and U.S. postretirement benefit plans are provided in the following tables.



	Pension Plans												Postretirement Benefit Plans
Weighted-average assumptions used to determine benefit obligations for years ended December 31:	2016				2015				2014				2016		2015		2014
	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate	3.89	%	2.33	%	4.13	%	3.26	%	3.80	%	3.10	%	3.91	%	4.17	%	3.91	%
Rate of compensation increase	3.25	%	2.94	%	3.50	%	3.00	%	3.50	%	3.24	%	3.25	%	3.50	%	3.50	%
Health care cost trend
Initial													7.00	%	7.50	%	7.50	%
Decreasing to ultimate trend of													5.00	%	5.00	%	5.00	%
in year													2021		2021		2020
Weighted-average assumptions used to determine net periodic cost for years ended December 31:	2016				2015				2014				2016		2015		2014
	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate	4.13	%	3.26	%	3.80	%	3.10	%	4.59	%	4.18	%	4.17	%	3.91	%	4.75	%
Discount rate for service cost	4.13	%	3.26	%	3.80	%	3.10	%	4.59	%	4.18	%	4.57	%	3.91	%	4.75	%
Discount rate for interest cost	3.33	%	3.26	%	3.80	%	3.10	%	4.59	%	4.18	%	3.42	%	3.91	%	4.75	%
Expected return on assets	7.60	%	5.11	%	7.78	%	5.50	%	7.83	%	5.78	%	3.75	%	3.75	%	3.75	%
Rate of compensation increase	3.50	%	3.00	%	3.50	%	3.24	%	3.50	%	3.49	%	3.50	%	3.50	%	3.50	%
Health care cost trend
Initial													7.50	%	7.50	%	8.00	%
Decreasing to ultimate trend of													5.00	%	5.00	%	5.00	%
in year													2021		2020		2020

Schedule of Fair Value Measurements of Pension Plan Assets on a Recurring Basis

The following charts reflect the fair value of the defined benefit pension plans assets as of December 31, 2016 and 2015.



(Dollars in millions)					Fair Value Measurements at December 31, 2016
Description	December 31, 2016				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Pension Assets:	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Cash & Cash Equivalents ⁽¹⁾	$	41	$	25	$	41	$	25	$	—	$	—	$	—	$	—
Public Equity - United States ⁽²⁾	4		—		4		—		—		—		—		—
Other Investments ⁽³⁾	—		44		—		—		—		—		—		44
Total Assets at Fair Value	$	45	$	69	$	45	$	25	$	—	$	—	$	—	$	44
Investments Measured at Net Asset Value ⁽⁴⁾	1,914		598
Total Assets	$	1,959	$	667



(Dollars in millions)					Fair Value Measurements at December 31, 2015
Description	December 31, 2015				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Pension Assets:	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Cash & Cash Equivalents ⁽¹⁾	$	66	$	7	$	66	$	7	$	—	$	—	$	—	$	—
Other Investments ⁽³⁾	—		42		—		—		—		—		—		42
Total Assets at Fair Value	$	66	$	49	$	66	$	7	$	—	$	—	$	—	$	42
Investments Measured at Net Asset Value ⁽⁴⁾	1,821		601
Total Assets	$	1,887	$	650


⁽¹⁾	Cash & Cash Equivalents: Amounts are generally invested in actively managed collective trust funds or interest bearing accounts.


⁽²⁾	Public Equity - United States: Amount for common stock equity securities which are primarily valued using a market approach based on the quoted market prices.


⁽³⁾	Other Investments: Primarily consist of insurance contract which are generally valued using a crediting rate that approximates market returns and invest in underlying securities whose market values are unobservable and determined using pricing models, discounted cash flow methodologies, or similar techniques.

⁽⁴⁾

Investments Measured at Net Asset Value: The underlying debt and public equity investments in this category are generally held in common trust funds, which are either actively or passively managed investment vehicles, that are valued at the net asset value per unit/share multiplied by the number of units/shares held as of the measurement date. The other alternative investments in this category are valued under the practical expedient method which is based on the most recently reported net asset value provided by the management of each private investment fund, adjusted as appropriate, for any lag between the date of the financial reports and the measurement date. The disclosure of investments measured at net asset value, as a practical expedient for fair value, have been conformed to the disclosure provisions under updates to fair value measurement issued in 2015.

The following charts reflect the fair value of the postretirement benefit plan assets as of December 31, 2016 and 2015. The postretirement benefit plan is for the voluntary employees' beneficiary association ("VEBA") trust the Company assumed as part of the Solutia acquisition.



(Dollars in millions)			Fair Value Measurements at December 31, 2016
Description	December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Postretirement Benefit Plan Assets:
Cash & Cash Equivalents ⁽¹⁾	$	3	$	3	$	—	$	—
Debt ⁽²⁾:
Fixed Income (U.S.)	82		—		82		—
Fixed Income (Non-U.S.)	30		—		30		—
Total	$	115	$	3	$	112	$	—



(Dollars in millions)			Fair Value Measurements at December 31, 2015
Description	December 31, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Postretirement Benefit Plan Assets:
Debt ⁽²⁾:
Fixed Income (U.S.)	$	86	$	—	$	86	$	—
Fixed Income (Non-U.S.)	34		—		34		—
Total	$	120	$	—	$	120	$	—


⁽¹⁾	Cash & Cash Equivalents: Amounts are generally invested in actively managed collective trust funds or interest bearing accounts.

⁽²⁾

Debt: The fixed income securities are primarily valued upon a market approach, using matrix pricing and considering a security’s relationship to other securities for which quoted prices in an active market may be available, or an income approach, converting future cash flows to a single present value amount. Inputs used in developing fair value estimates include reported trades, broker quotes, benchmark yields, and base spreads

Schedule of Pension Plan Assets Classified within Level 3 of the Fair Value Hierarchy

The Company valued assets with unobservable inputs (Level 3), primarily insurance contracts, using a crediting rate that approximates market returns and invest in underlying securities whose market values are unobservable and determined using pricing models, discounted cash flow methodologies, or similar techniques.



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Other Investments⁽¹⁾
(Dollars in millions)	U.S. Pension Plans			Non-U.S. Pension Plans
Balance at December 31, 2014	$	4		$	55
Distributions	(4		)	—
Unrealized gains	—			(5		)
Purchases, contributions, and other	—			(8		)
Balance at December 31, 2015	—			42
Distributions	—			—
Unrealized gains	—			2
Purchases, contributions, and other	—			—
Balance at December 31, 2016	$	—		$	44


⁽¹⁾	Primarily consists of insurance contracts.

Schedule of US and Non-US Pension Plans Asset Target Allocation by Category

The following chart reflects the target allocation for the Company's U.S. and non-U.S. pension and postretirement benefit plans assets for 2017 and the asset allocation at December 31, 2016 and 2015, by asset category. The postretirement benefit plan is for the VEBA trust the Company assumed as part of the Solutia acquisition.



	U.S. Pension Plans			Non-U.S. Pension Plans			Postretirement Benefit Plan
	Target Allocation	Plan Assets at December 31, 2016	Plan Assets at December 31, 2015	Target Allocation	Plan Assets at December 31, 2016	Plan Assets at December 31, 2015	Target Allocation	Plan Assets at December 31, 2016	Plan Assets at December 31, 2015
Asset category
Equity securities	45%	47%	44%	33%	30%	36%	—%	—%	—%
Debt securities	39%	41%	41%	47%	52%	46%	100%	100%	100%
Real estate	3%	2%	4%	2%	2%	2%	—%	—%	—%
Other investments ⁽¹⁾	13%	10%	11%	18%	16%	16%	—%	—%	—%
Total	100%	100%	100%	100%	100%	100%	100%	100%	100%


⁽¹⁾	U.S. primarily consists of private equity and natural resource and energy related limited partnership investments. Non-U.S. primarily consists of annuity contracts and alternative investments.

Schedule Benefits Expected to be Paid from Pension Plans and Benefits

The estimated future benefit payments, reflecting expected future service, as appropriate, are as follows:



	Pension Plans				Postretirement Benefit Plans
(Dollars in millions)	U.S.		Non-U.S.
2017	$	236	$	21	$	57
2018	191		21		56
2019	188		21		57
2020	186		22		57
2021	179		24		56
2022-2026	803		139		232