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ASSETS IMPAIRMENTS AND RESTRUCTURING | 6 Months Ended
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Jun. 30, 2021
Restructuring Costs and Asset Impairment Charges [Abstract] |
ASSET IMPAIRMENTS AND RESTRUCTURING | ASSET IMPAIRMENTS AND RESTRUCTURING CHARGES, NET
(Dollars in millions) | Second Quarter |  | First Six Months
Tangible Asset Impairments | 2021 |  | 2020 |  | 2021 |  | 2020
Site optimizations |  |  |  |  |  |  |
AFP - Tire additives (1) | $ | 4 |  |  | $ | 5 |  |  | $ | 4 |  |  | $ | 5 |
AM - Advanced interlayers (2) | 1 |  |  | — |  |  | 1 |  |  | — |
AM - Performance films (3) | — |  |  | — |  |  | — |  |  | 4 |
AFP - Animal nutrition (4) | — |  |  | — |  |  | — |  |  | 3 |
Discontinuation of growth initiatives (5) | — |  |  | 8 |  |  | — |  |  | 8 |
| 5 |  |  | 13 |  |  | 5 |  |  | 20 |
Gain on Sale of Previously Impaired Assets |  |  |  |  |  |  |
Site optimizations |  |  |  |  |  |  |
AFP - Animal nutrition (4) | — |  |  | — |  |  | (1) |  |  | — |
| — |  |  | — |  |  | (1) |  |  | — |
Intangible Asset Impairments |  |  |  |  |  |  |
AFP - Tradenames (6) | — |  |  | 123 |  |  | — |  |  | 123 |
AFP - Customer relationships (7) | — |  |  | — |  |  | — |  |  | 2 |
| — |  |  | 123 |  |  | — |  |  | 125 |
Severance Charges |  |  |  |  |  |  |
CI & AFP - Singapore (8) | — |  |  | 2 |  |  | — |  |  | 3 |
Site optimizations |  |  |  |  |  |  |
AM - Advanced interlayers (2) | — |  |  | — |  |  | 1 |  |  | — |
AM - Performance films (3) | — |  |  | — |  |  | — |  |  | 3 |
AFP - Animal nutrition (4) | — |  |  | — |  |  | — |  |  | 1 |
| — |  |  | 2 |  |  | 1 |  |  | 7 |
Other Restructuring Costs |  |  |  |  |  |  |
Discontinuation of growth initiatives contract termination fees (5) | — |  |  | 3 |  |  | — |  |  | 3 |
CI & AFP - Singapore (8) | 8 |  |  | — |  |  | 13 |  |  | — |
Site optimizations |  |  |  |  |  |  |
AM - Advanced interlayers (2) | 2 |  |  | — |  |  | 2 |  |  | — |
AFP - Tire additives (1) | — |  |  | — |  |  | 2 |  |  | — |
| 10 |  |  | 3 |  |  | 17 |  |  | 3 |
Total | $ | 15 |  |  | $ | 141 |  |  | $ | 22 |  |  | $ | 155 |
(1)Asset impairments and 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. (2)Asset impairments, severance charges, and site closure costs in the Advanced Materials ("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 six months 2021 related to the closure of this facility. Management expects total charges of up to $30 million for the closure of this facility, primarily reported 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. (3)Fixed asset impairments and severance in the AM segment from the previously reported closure of a performance films manufacturing facility in North America as part of ongoing site optimization. (4)Fixed asset impairments, net and severance in the AFP segment from the previously reported closure of an animal nutrition manufacturing facility in Asia Pacific as part of ongoing site optimization. (5)Fixed asset impairments and contract termination fees resulting from management's decision to discontinue growth initiatives for polyester based microfibers, including Avra TM performance fibers, the financial results of which were not allocated to an operating segment and reported in "Other". (6)Intangible asset impairment charges in the AFP segment tire additives business to reduce the carrying values of the Crystex TM and Santoflex TM tradenames to the estimated fair values. The estimated fair values were determined using an income approach, specifically, the relief from royalty method, including some unobservable inputs. The impairments were primarily the result of weakened demand in the transportation markets impacted by COVID-19 and increased competitive pricing pressure as a result of global capacity increases. (7)Intangible asset impairment charge in the AFP segment for customer relationships. (8)Severance charges in second quarter and first six months 2020 of $2 million and $1 million, respectively, in the Chemical Intermediates ("CI") segment, contract termination fees in second quarter 2021 of $7 million and $1 million in the CI segment and AFP segment, respectively, and site closure costs in first six months 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. 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 six months 2021 and full year 2020:
(Dollars in millions) | Balance at January 1, 2021 |  | Provision/ Adjustments |  | Non-cash Reductions/ Additions |  | Cash Reductions |  | Balance at June 30, 2021
Non-cash charges | $ | — |  |  | $ | 5 |  |  | $ | (5) |  |  | $ | — |  |  | $ | — |
Severance costs | 65 |  |  | 1 |  |  | — |  |  | (38) |  |  | 28 |
Other restructuring costs | 14 |  |  | 16 |  |  | 1 |  |  | (9) |  |  | 22 |
Total | $ | 79 |  |  | $ | 22 |  |  | $ | (4) |  |  | $ | (47) |  |  | $ | 50 |
(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.

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- Definition The entire disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References No definition available. + Details
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