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Restructuring Accruals | 12 Months Ended
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Dec. 31, 2011
Restructuring Accruals |
Restructuring Accruals |
15. Restructuring Accruals Beginning in 2007, the Company commenced a strategic review of its global profitability and manufacturing footprint. The Company concluded its global review in 2010 and recorded total cumulative charges of $402 million. The related curtailment of plant capacity and realignment of selected operations has resulted in an overall reduction in the Company's workforce of approximately 3,250 jobs during the period. Amounts recorded by the Company do not include any future gains that may be realized upon the ultimate sale or disposition of closed facilities. The Company is currently implementing a restructuring plan in its Asia Pacific segment, primarily related to aligning its supply base with lower demand in Australia and other actions in China. As part of this plan, the Company recorded charges of $37 million for employee costs and asset impairments in 2011 as it closed a furnace in Australia and plans to close an additional furnace in early 2012. Further restructuring activities in Australia will depend on 2012 supply and demand trends and the outcome of contract negotiations. The Company also recorded charges of $8 million in 2011 for employee costs related to a plant closing in China, driven by the urban encroachment around this plant and the decision to relocate the existing business to other facilities in China. The Company continually reviews its manufacturing footprint and may close various operations due to plant efficiencies, integration of acquisitions, and other market factors. These restructuring actions taken by the Company are not related to the strategic review of manufacturing operations or the Asia Pacific restructuring plan discussed above. As part of this continuing review of its manufacturing footprint, the Company recorded charges of $24 million for employee costs and asset impairments related to a decision to close a furnace in Europe. In addition, the Company recorded $13 million of restructuring charges in 2011 related to headcount reductions, primarily in Europe and South America, and $12 million for an asset impairment related to a previously closed facility in Europe. The Company acquired VDL in 2011 (see Note 21). As part of this acquisition, the Company assumed the severance liability of VDL related to a headcount reduction program initiated prior to the acquisition. Selected information related to the restructuring accruals is as follows:
|  | Strategic Footprint Review |  |  |  |  |  |  |
--- | --- | --- | --- | --- | --- | --- | --- | --- | ---
|  | Employee Costs |  | Other |  | Total |  | Asia Pacific |  | Other Actions |  | Total |
Balance at January 1, 2009 |  | $ | 47 |  | $ | 17 |  | $ | 64 |  | $ | — |  | $ | 27 |  | $ | 91 |
2009 charges |  |  | 110 |  |  | 97 |  |  | 207 |  |  |  |  |  |  |  |  | 207 |
Write-down of assets to net realizable value |  |  |  |  |  | (79 | ) |  | (79 | ) |  |  |  |  |  |  |  | (79 | )
Net cash paid, principally severance and related benefits |  |  | (57 | ) |  | (8 | ) |  | (65 | ) |  |  |  |  |  |  |  | (65 | )
Other, including foreign exchange translation |  |  | (7 | ) |  | (1 | ) |  | (8 | ) |  |  |  |  |  |  |  | (8 | )
Balance at December 31, 2009 |  |  | 93 |  |  | 26 |  |  | 119 |  |  | — |  |  | 27 |  |  | 146 |
2010 charges |  |  | (4 | ) |  | 17 |  |  | 13 |  |  |  |  |  |  |  |  | 13 |
Write-down of assets to net realizable value |  |  |  |  |  | (3 | ) |  | (3 | ) |  |  |  |  |  |  |  | (3 | )
Net cash paid, principally severance and related benefits |  |  | (47 | ) |  | (14 | ) |  | (61 | ) |  |  |  |  |  |  |  | (61 | )
Other, including foreign exchange translation |  |  | (15 | ) |  | (1 | ) |  | (16 | ) |  |  |  |  |  |  |  | (16 | )
Balance at December 31, 2010 |  |  | 27 |  |  | 25 |  |  | 52 |  |  | — |  |  | 27 |  |  | 79 |
2011 charges |  |  | (5 | ) |  | (1 | ) |  | (6 | ) |  | 46 |  |  | 55 |  |  | 95 |
Write-down of assets to net realizable value |  |  |  |  |  | (1 | ) |  | (1 | ) |  | (8 | ) |  | (31 | ) |  | (40 | )
Net cash paid, principally severance and related benefits |  |  | (5 | ) |  | (4 | ) |  | (9 | ) |  | (21 | ) |  | (9 | ) |  | (39 | )
Acquisition |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 11 |  |  | 11 |
Other, including foreign exchange translation |  |  | 1 |  |  |  |  |  | 1 |  |  |  |  |  | (4 | ) |  | (3 | )
Balance at December 31, 2011 |  | $ | 18 |  | $ | 19 |  | $ | 37 |  | $ | 17 |  | $ | 49 |  | $ | 103 |
The Company's decisions to curtail selected production capacity have resulted in write downs of certain long-lived assets to the extent their carrying amounts exceeded fair value or fair value less cost to sell. The Company classified the significant assumptions used to determine the fair value of the impaired assets, which was not material, as Level 3 in the fair value hierarchy as set forth in the general accounting principles for fair value measurements. The Company also recorded liabilities for certain employee separation costs to be paid under contractual arrangements and other exit costs.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 146 -Paragraph 20 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140864-122747 + Details
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