XML 25 R15.htm IDEA: XBRL DOCUMENT
v3.23.3

Note 6 - Restructuring, Impairment and Plant Closing Costs | 9 Months Ended
--- | ---
Sep. 30, 2023
Notes to Financial Statements |
Restructuring and Related Activities Disclosure [Text Block] | 6. RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS As of September 30, 2023 and December 31, 2022, accrued restructuring costs by type of cost consisted of the following (dollars in millions):
|  | Workforce reductions |  |  | Other restructuring costs |  |  | Total |
Accrued liabilities as of January 1, 2023 |  | $ | 76 |  |  | $ | — |  |  | $ | 76 |
(Credits) charges |  |  | (8 | ) |  |  | 8 |  |  |  | — |
Payments |  |  | (40 | ) |  |  | (8 | ) |  |  | (48 | )
Accrued liabilities as of September 30, 2023 |  | $ | 28 |  |  | $ | — |  |  | $ | 28 |
Details with respect to our reserves for restructuring, impairment and plant closing costs by segment are provided below (dollars in millions):
|  |  |  |  |  | Performance |  |  | Advanced |  |  | Corporate |  |  |  |  |
|  | Polyurethanes |  |  | Products |  |  | Materials |  |  | and other |  |  | Total |
Accrued liabilities as of January 1, 2023 |  | $ | 24 |  |  | $ | 5 |  |  | $ | 10 |  |  | $ | 37 |  |  | $ | 76 |
(Credits) charges |  |  | (1 | ) |  |  | 3 |  |  |  | 5 |  |  |  | (7 | ) |  |  | — |
Payments |  |  | (14 | ) |  |  | (3 | ) |  |  | (10 | ) |  |  | (21 | ) |  |  | (48 | )
Accrued liabilities as of September 30, 2023 |  | $ | 9 |  |  | $ | 5 |  |  | $ | 5 |  |  | $ | 9 |  |  | $ | 28 |
Current portion of restructuring reserves |  | $ | 9 |  |  | $ | 5 |  |  | $ | 4 |  |  | $ | 9 |  |  | $ | 27 |
Long-term portion of restructuring reserves |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | — |  |  |  | 1 |
Details with respect to cash and noncash restructuring charges from continuing operations for the three and nine months ended September 30, 2023 and 2022 are provided below (dollars in millions):
|  | Three months |  |  | Nine months |
|  | ended |  |  | ended |
|  | September 30, |  |  | September 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Cash charges |  | $ | — |  |  | $ | 13 |  |  | $ | — |  |  | $ | 37 |
Noncash charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accelerated depreciation |  |  | 5 |  |  |  | — |  |  |  | 6 |  |  |  | — |
Gain on sale of assets |  |  | — |  |  |  | (2 | ) |  |  |  |  |  |  | (2 | )
Other noncash charges |  |  | 1 |  |  |  | 1 |  |  |  | 1 |  |  |  | 1 |
Total restructuring, impairment and plant closing costs |  | $ | 6 |  |  | $ | 12 |  |  | $ | 7 |  |  | $ | 36 |
Restructuring Activities Beginning in the fourth quarter of 2022, we implemented a restructuring program to further realign our cost structure with additional restructuring in Europe. This program is associated with all of our segments and includes exiting and consolidating certain facilities, workforce relocation to lower cost locations and further personnel rationalization. In connection with this restructuring program, we recorded net restructuring expense of approximately $2 million for the nine months ended September 30, 2023, primarily related to workforce reductions and accelerated depreciation, partially offset by adjustments to restructuring reserves that are no longer required for certain workforce reductions. We expect to record further restructuring expenses of approximately $12 million through the first half of 2025. Beginning in the first quarter of 2021, our Corporate function implemented a restructuring program to optimize our global approach to leveraging shared services capabilities. During the second quarter of 2022, this program was further expanded to include additional geographies. During the nine months ended September 30, 2023, we evaluated current developments of this program and related anticipated cash costs, and we recorded a net restructuring credit of approximately $6 million for the nine months ended September 30, 2023, primarily to adjust restructuring reserves that are no longer required for certain workforce reductions. During the nine months ended September 30, 2022, we recorded approximately $15 million of net restructuring costs, primarily related to workforce reductions. We expect to record further restructuring expenses of approximately $1 million through the first half of 2024. Beginning in the third quarter of 2020, our Polyurethanes segment implemented a restructuring program to optimize its downstream footprint. During the second quarter of 2022, this optimization program was further expanded to include the entire Polyurethanes business. In connection with this restructuring program, we recorded net restructuring expense of approximately $5 million and $7 million in the nine months ended September 30, 2023 and 2022, respectively, primarily related to workforce reductions. We do not expect to record further significant restructuring expenses. Beginning in the second quarter of 2020, our Advanced Materials segment implemented restructuring programs in connection with the CVC Thermoset Specialties Acquisition, the alignment of the segment’s commercial organization and optimization of the segment’s manufacturing processes. In connection with these restructuring programs, we recorded net restructuring expense of approximately $4 million and $1 million in the nine months ended September 30, 2023 and 2022, respectively, primarily related to a site closure and accelerated depreciation. We expect to record further restructuring expenses of approximately $1 million through the first half of 2024. Beginning in the third quarter of 2022, our Corporate function implemented restructuring programs to optimize our global approaches to leveraging managed services in various information technology functions and to align and optimize our environmental, health and safety processes and systems. In connection with these restructuring programs, we recorded net restructuring expense of approximately $12 million in the three months ended September 30, 2022, primarily related to workforce reductions.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//420/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479823/420-10-S99-2 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration