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79
The following table summarizes the activities related to the Company's 4Q12 Restructuring reserve, which is included in
"Accrued and other current liabilities" and "Other noncurrent obligations" in the consolidated balance sheets:
4Q12 Restructuring Activities
Costs
Associated with
Exit or
Disposal
Activities
Impairment of
Long-Lived
Assets, Other
Assets and
Equity Method
Investments
In millions
Severance
Costs Total
Restructuring charges recognized in the
fourth quarter of 2012 $ 39 $ 375 $ 576 $ 990
Charges against the reserve (9) — (576) (585)
Cash payments — (8) — (8)
Reserve balance at December 31, 2012 $ 30 $ 367 $ — $ 397
Adjustments to the reserve (6) —— (6)
Cash payments (5) (228) — (233)
Reserve balance at December 31, 2013 $ 19 $ 139 $ — $ 158
Adjustments to the reserve (3) —— (3)
Cash payments (4) (106) — (110)
Reserve balance at December 31, 2014 $ 12 $ 33 $ — $ 45
The 4Q12 Restructuring activities were substantially completed in 2014, with remaining liabilities related to severance, contract
cancellation fees and environmental remediation to be settled over time.
1Q12 Restructuring
On March 27, 2012, the Company's Board of Directors approved a restructuring plan ("1Q12 Restructuring") to optimize its
portfolio, respond to changing and volatile economic conditions, particularly in Western Europe, and to advance the Company's
Efficiency for Growth program, which was initiated by the Company in the second quarter of 2011. The 1Q12 Restructuring
plan included the elimination of approximately 900 positions. In addition, the Company shut down a number of manufacturing
facilities. These actions were substantially completed at December 31, 2013.
As a result of the 1Q12 Restructuring activities, the Company recorded pretax restructuring charges of $357 million in the first
quarter of 2012 consisting of costs associated with exit or disposal activities of $150 million, severance costs of $113 million
and asset write-downs and write-offs of $94 million. The impact of these charges is shown as "Restructuring charges (credits)"
in the consolidated statements of income and reflected in the Company's segment results as shown in the following table:
1Q12 Restructuring Charges by Operating Segment Costs
Associated with
Exit or
Disposal
Activities
Impairment of
Long-Lived
Assets and
Other Assets
In millions
Severance
Costs Total
Infrastructure Solutions $ 4 $ — $ 37 $ 41
Performance Materials & Chemicals 146 — 57 203
Corporate — 113 — 113
Total 1Q12 Restructuring charges $ 150 $ 113 $ 94 $ 357
Adjustment to 1Q12 Restructuring charges:
2012 - Infrastructure Solutions — — (4) (4)
2013 - Infrastructure Solutions (1) — — (1)
2013 - Performance Materials & Chemicals (15) — — (15)
Net 1Q12 Restructuring charges $ 134 $ 113 $ 90 $ 337