RESTRUCTURING AND ASSET RELATED CHARGES - NET

3 Months Ended

Mar. 31, 2019

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

In September and November 2017, the Corporation approved restructuring actions that were aligned with DowDuPont’s synergy targets. For the three months ended March 31, 2019, the Corporation recorded pretax restructuring charges of $1 million for severance and related benefit costs ($1 million for the three months ended March 31, 2018). The impact of these charges was shown as “Restructuring and asset related charges - net” in the consolidated statements of income. These actions are expected to be substantially completed by the end of 2019.

The Corporation recorded pretax restructuring charges of $76 million inception-to-date under the restructuring program, consisting of severance and related benefit costs of $14 million, and $62 million for asset write-downs and write-offs of manufacturing and facility related assets at multiple UCC sites, including a steam unit in Institute, West Virginia. At March 31, 2019, severance of $10 million had been paid, leaving a liability of $4 million.

The Corporation expects to incur additional costs in the future related to restructuring activities, as UCC continually looks for ways to enhance the efficiency and cost effectiveness of its operations. The Corporation 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.