ASSETS IMPAIRMENTS AND RESTRUCTURING

3 Months Ended

Mar. 31, 2021

Restructuring Costs and Asset Impairment Charges [Abstract]

ASSET IMPAIRMENTS AND RESTRUCTURING CHARGES, NET


(Dollars in millions)	First Quarter
Fixed Asset Impairments	2021		2020
Site optimizations

AM - Performance films (1)	$	—	$	4
AFP - Animal nutrition (2)	—		3

	—		7
Gain on Sale of Previously Impaired Assets
Site optimizations
AFP - Animal nutrition (2)	(1)		—
	(1)		—
Intangible Asset Impairments

AFP - Customer relationships (3)	—		2
	—		2
Severance Charges

CI & AFP - Singapore (4)	—		1
Site optimizations
AM - Advanced interlayers (5)	1		—

AM - Performance films (1)	—		3
AFP - Animal nutrition (2)	—		1
	1		5
Other Restructuring Costs


CI & AFP - Singapore (4)	5		—
Site optimizations

AFP - Tire additives (6)	2		—



	7		—

Total	$	7	$	14

(1)Fixed asset impairments and severance in the Advanced Materials ("AM") segment from the previously reported closure of a performance films manufacturing facility in North America as part of ongoing site optimization.

(2)Fixed asset impairments, net and severance in the Additives & Functional Products ("AFP") segment from the previously reported closure of an animal nutrition manufacturing facility in Asia Pacific as part of ongoing site optimization.

(3)Intangible asset impairment charge in the AFP segment for customer relationships.

(4)Severance charges in first quarter 2020 of $1 million in the Chemical Intermediates ("CI") segment and site closure costs in first quarter 2021 of $4 million and $1 million in the CI and AFP segments, respectively, resulting from the previously reported plan to discontinue production of certain products at the Singapore manufacturing site. Excluding the fixed asset impairments in 2019, restructuring charges of up to $50 million are expected for this closure, of which $6 million was recognized in 2020.

(5)Severance in the AM segment due to the previously reported closure of an advanced interlayers manufacturing facility in North America as part of ongoing site optimization. In addition, accelerated depreciation of $4 million was recognized in "Cost of sales" in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings in first quarter 2021 related to the closure of this facility. Management expects total charges of up to $30 million for the closure of this facility, mostly in "Cost of sales" and in "Asset impairments and restructuring charges, net" in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings, of which $13 million was recognized in 2020.

(6)Site closure costs in the AFP segment from the previously reported closure of a tire additives manufacturing facility in Asia Pacific as part of ongoing site optimization.

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 2021 and full year 2020:


(Dollars in millions)	Balance at January 1, 2021		Provision/ Adjustments		Non-cash Reductions/ Additions		Cash Reductions		Balance at March 31, 2021
Non-cash charges	$	—	$	—	$	—	$	—	$	—
Severance costs	65		1		—		(23)		43
Other restructuring costs	14		6		—		(6)		14
Total	$	79	$	7	$	—	$	(29)	$	57


(Dollars in millions)	Balance at January 1, 2020		Provision/ Adjustments		Non-cash Reductions/ Additions		Cash Reductions		Balance at December 31, 2020
Non-cash charges	$	—	$	145	$	(145)	$	—	$	—
Severance costs	17		65		1		(18)		65
Other restructuring costs	11		17		—		(14)		14
Total	$	28	$	227	$	(144)	$	(32)	$	79

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