ASSETS IMPAIRMENTS AND RESTRUCTURING

9 Months Ended

Sep. 30, 2019

Restructuring Costs and Asset Impairment Charges [Abstract]

ASSET IMPAIRMENTS AND RESTRUCTURING CHARGES, NET



	Third Quarter				First Nine Months
(Dollars in millions)	2019		2018		2019		2018
Severance charges	$	1	$	—	$	45	$	6
Other restructuring costs	1		—		7		—
Total	$	2	$	—	$	52	$	6

Third quarter and first nine months 2019 restructuring charges included $2 million and $48 million, respectively, for severance and related costs as part of business improvement and cost reduction initiatives. First nine months 2019 also included an additional $4 million restructuring charge related to a capital project in the Additives & Functional Products ("AFP") segment that was discontinued in 2016. In first nine months 2018, the Company recognized restructuring charges of $6 million for corporate severance.

Changes in Reserves

The following table summarizes the changes in asset impairments and restructuring charges and gains, the non-cash reductions attributable to asset impairments, and the cash reductions in restructuring reserves for severance costs and site closure costs paid in first nine months 2019 and full year 2018:



(Dollars in millions)	Balance at January 1, 2019		Provision/ Adjustments		Non-cash Reductions/ Additions		Cash Reductions			Balance at September 30, 2019
Severance costs	$	6	$	44	$	—	$	(25	)	$	25
Other restructuring costs	8		8		1		(6		)	11
Total	$	14	$	52	$	1	$	(31	)	$	36



(Dollars in millions)	Balance at January 1, 2018		Provision/ Adjustments		Non-cash Reductions/ Additions			Cash Reductions			Balance at December 31, 2018
Non-cash charges	$	—	$	39	$	(39	)	$	—		$	—
Severance costs	19		6		1			(20		)	6
Other restructuring costs	10		—		—			(2		)	8
Total	$	29	$	45	$	(38	)	$	(22	)	$	14

Substantially all severance costs remaining are expected to be applied to the reserves within one year.