ASSETS IMPAIRMENTS AND RESTRUCTURING

3 Months Ended

Mar. 31, 2020

Restructuring Costs and Asset Impairment Charges [Abstract]

ASSET IMPAIRMENTS AND RESTRUCTURING CHARGES, NET


	First Quarter
(Dollars in millions)	2020		2019
Fixed asset impairments	$	7	$	—

Intangible asset impairments	2		—
Severance charges	5		28
Other restructuring costs	—		4
Total	$	14	$	32

First quarter 2020 asset impairments and restructuring charges consisted of fixed asset impairment charges of $4 million and severance charges of $3 million in the Advanced Materials segment resulting from the closure of a manufacturing facility in North America and fixed asset impairment charges of $3 million and severance charges of $1 million in the Additives and Functional Products ("AFP") segment for a manufacturing facility in Asia Pacific, each part of ongoing site optimization actions. The Company also recognized an intangible asset impairment charge of $2 million in the AFP segment for customer relationships. In the Chemical Intermediates segment, the Company recognized severance charges of $1 million related to the previously disclosed plan to discontinue production of certain products at the Singapore manufacturing site by the end of 2020.

First quarter 2019 restructuring charges included $28 million for severance and related costs as part of business improvement and cost reduction initiatives and an additional $4 million restructuring charge related to a capital project in the AFP segment that was discontinued in 2016.

Changes in Reserves

The following table summarizes the changes in asset impairments and restructuring charges, 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 three months 2020 and full year 2019:


(Dollars in millions)	Balance at January 1, 2020		Provision/ Adjustments		Non-cash Reductions/ Additions		Cash Reductions		Balance at March 31, 2020
Non-cash charges	$	—	$	9	$	(9)	$	—	$	—
Severance costs	17		5		—		(5)		17
Other restructuring costs	11		—		—		(1)		10
Total	$	28	$	14	$	(9)	$	(6)	$	27


(Dollars in millions)	Balance at January 1, 2019		Provision/ Adjustments		Non-cash Reductions/ Additions		Cash Reductions		Balance at December 31, 2019
Non-cash charges	$	—	$	72	$	(72)	$	—	$	—
Severance costs	6		45		—		(34)		17
Other restructuring costs	8		9		1		(7)		11
Total	$	14	$	126	$	(71)	$	(41)	$	28

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