RESTRUCTURING

On October 22, 2012, the Board of Directors of the Corporation approved a restructuring plan to improve the cost effectiveness of the Corporation's global operations. The restructuring plan will affect approximately 100 positions and result in the shutdown of certain manufacturing facilities. These actions are expected to be completed primarily by March 31, 2015.

As a result of the restructuring activities, the Corporation recorded pretax restructuring charges of $71 million in the fourth quarter of 2012 consisting of costs associated with exit or disposal activities of $13 million, severance costs of $10 million and asset write-downs and write-offs of $48 million. The impact of these charges was shown as "Restructuring charges" in the consolidated statements of operations.

Severance

The restructuring charges in the fourth quarter of 2012 included severance of $10 million for the separation of approximately 100 employees under the terms of the Corporation's ongoing benefit arrangements, primarily by March 31, 2015. At December 31, 2013, severance of $6 million was paid and a liability of $4 million remained for 21 employees. In the first nine months of 2014, severance of $2 million was paid leaving a liability of $2 million for approximately 10 employees at September 30, 2014.

The following table summarizes the activities related to the Corporation's restructuring reserve:



Restructuring Activities	Costs Associated with Exit or Disposal Activities			Severance Costs
In millions	Costs Associated with Exit or Disposal Activities			Severance Costs			Total
Reserve balance at December 31, 2013	$	11		$	4		$	15
Cash payments	—			(1		)	(1		)
Reserve balance at March 31, 2014	$	11		$	3		$	14
Cash payments	(1		)	—			(1		)
Reserve balance at June 30, 2014	$	10		$	3		$	13
Cash payments	—			(1		)	(1		)
Reserve balance at September 30, 2014	$	10		$	2		$	12

The reserve balance is included in the consolidated balance sheets as "Accrued and other current liabilities" and "Other noncurrent obligations."

The Corporation expects to incur additional costs in the future related to its restructuring activities, as UCC continually looks for ways to enhance the efficiency and cost effectiveness of its operations. Future costs are expected to include demolition costs related to closed facilities; these will be recognized as incurred. The Corporation also expects to incur additional employee-related costs, including involuntary termination benefits, related to its other optimization activities. These costs cannot be reasonably estimated at this time.