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ASSET IMPAIRMENTS AND RESTRUCTURING (Tables) | 12 Months Ended
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Dec. 31, 2021
Restructuring Costs and Asset Impairment Charges [Abstract] |
Schedule of Restructuring and Related Charges | Components of asset impairments and restructuring charges, net, are presented below:
| For years ended December 31,
(Dollars in millions) | 2021 |  | 2020 |  | 2019
Tangible Asset Impairments |  |  |  |  |
CI & AFP - Singapore (1) | $ | 3 |  |  | $ | — |  |  | $ | 27 |
Site optimizations |  |  |  |  |
AFP - Tire additives (2) | 12 |  |  | 5 |  |  | — |
AM - Advanced interlayers (3) | 1 |  |  | — |  |  | — |
AM - Performance films (4) | — |  |  | 5 |  |  | — |
AFP - Animal nutrition (5) | — |  |  | 3 |  |  | — |
Discontinuation of growth initiatives (6) | — |  |  | 8 |  |  | — |
| 16 |  |  | 21 |  |  | 27 |
Gain on Sale of Previously Impaired Assets |  |  |  |  |
Site optimizations |  |  |  |  |
AFP - Animal nutrition (5) | (1) |  |  | — |  |  | — |
| (1) |  |  | — |  |  | — |
Intangible Asset Impairments |  |  |  |  |
AFP - Tradenames (7) | — |  |  | 123 |  |  | — |
AFP - Customer relationships (8) | — |  |  | 2 |  |  | — |
AFP - Goodwill (9) | — |  |  | — |  |  | 45 |
| — |  |  | 125 |  |  | 45 |
Severance Charges |  |  |  |  |
Business improvement and cost reduction actions (10) | 1 |  |  | 47 |  |  | 45 |
CI & AFP - Singapore (1) | — |  |  | 6 |  |  | — |
Site optimizations |  |  |  |  |
AFP - Tire additives (2) | — |  |  | 3 |  |  | — |
AM - Advanced interlayers (3) | 1 |  |  | 5 |  |  | — |
AM - Performance films (4) | — |  |  | 3 |  |  | — |
AFP - Animal nutrition (5) | — |  |  | 1 |  |  | — |
| 2 |  |  | 65 |  |  | 45 |
Other Restructuring Costs |  |  |  |  |
Cost reduction initiatives (10) | — |  |  | 14 |  |  | 5 |
Discontinuation of growth initiatives contract termination fees (6) | — |  |  | 4 |  |  | — |
CI & AFP - Singapore (1) | 17 |  |  | — |  |  | — |
Site optimizations |  |  |  |  |
AFP - Tire additives (2) | 6 |  |  | — |  |  | — |
AM - Advanced interlayers (3) | 5 |  |  | — |  |  | — |
AM - Performance films (4) | 2 |  |  | — |  |  | — |
AFP - Animal nutrition (5) | — |  |  | (2) |  |  | — |
AFP - Discontinued capital project (11) | — |  |  | — |  |  | 4 |
| 30 |  |  | 16 |  |  | 9 |
Total | $ | 47 |  |  | $ | 227 |  |  | $ | 126 |
(1)Asset impairment charges in 2021 of $2 million and $1 million in the CI segment and the AFP segment, respectively, and in 2019 of $22 million and $5 million in the CI segment and the AFP segment, respectively. Severance charges in 2020 of $5 million and $1 million in the CI segment and the AFP segment, respectively, and site closure costs, including contract termination fees, in 2021 of $14 million and $3 million in the CI segment and the AFP segment, respectively, resulting from the previously disclosed plan to discontinue production of certain products at the Singapore manufacturing site. (2)Asset impairment charges of $8 million in 2021 in the AFP segment for assets associated with divested rubber additives. Asset impairment charges of $4 million and site closure costs of $6 million in the AFP segment in 2021 from the previously reported closure of a tire additives manufacturing facility in Asia Pacific as part of ongoing site optimization. Fixed asset impairments and severance in 2020 in the AFP segment from the closure of a tire additives manufacturing facility in Asia Pacific as part of ongoing site optimization. (3)Asset impairments, severance charges, and site closure costs in the Advanced Materials ("AM") segment due to the closure of an advanced interlayers manufacturing facility in North America as part of ongoing site optimization. In addition, accelerated depreciation of $4 million and $8 million was recognized in "Cost of sales" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings in 2021 and 2020, respectively, related to the closure of this facility. (4)Fixed asset impairments, severance charges, and site closure costs in the AM segment from the closure of a performance films manufacturing facility in North America as part of ongoing site optimization. (5)Fixed asset impairments, severance charges, and other restructuring gains in 2020 in the AFP segment from the closure of an animal nutrition manufacturing facility in Asia Pacific as part of ongoing site optimization, and in 2021 a gain from the sale of the previously impaired assets. (6)Fixed asset impairments and contract termination fees resulting from management's decision to discontinue growth initiatives for polyester based microfibers, including Avra™ performance fibers, the financial results of which were not allocated to an operating segment and reported in "Other". (7)Intangible asset impairment charges in the now divested AFP segment tire additives business to reduce the carrying values of the Crystex™ and Santoflex™ 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 are primarily the result of weakened demand in transportation markets impacted by COVID-19 and increased competitive pricing pressure as a result of global capacity increases. (8)Intangible asset impairment charge for customer relationships. (9)Goodwill impairment charge in the AFP segment resulting from the annual impairment test. (10)Severance and related costs as part of business improvement and cost reduction initiatives which were reported in "Other". (11)Additional restructuring charge related to a capital project in the AFP segment that was discontinued in 2016.
Schedule of Changes to Restructuring Reserve and Related Activities |
(Dollars in millions) | Balance at January 1, 2021 |  | Provision/ Adjustments |  | Non-cash Reductions/ Additions |  | Cash Reductions |  | Balance at December 31, 2021
Non-cash charges | $ | — |  |  | $ | 16 |  |  | $ | (16) |  |  | $ | — |  |  | $ | — |
Severance costs | 65 |  |  | 2 |  |  | (1) |  |  | (54) |  |  | 12 |
Site closure & restructuring costs | 14 |  |  | 29 |  |  | (9) |  |  | (29) |  |  | 5 |
Total | $ | 79 |  |  | $ | 47 |  |  | $ | (26) |  |  | $ | (83) |  |  | $ | 17 |
(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 |
Site closure & restructuring costs | 11 |  |  | 17 |  |  | — |  |  | (14) |  |  | 14 |
Total | $ | 28 |  |  | $ | 227 |  |  | $ | (144) |  |  | $ | (32) |  |  | $ | 79 |
(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 |
Site closure & restructuring costs | 8 |  |  | 9 |  |  | 1 |  |  | (7) |  |  | 11 |
Total | $ | 14 |  |  | $ | 126 |  |  | $ | (71) |  |  | $ | (41) |  |  | $ | 28 |

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