RESTRUCTURING AND ASSET RELATED CHARGES - NET

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Restructuring and Asset Related Charges - Net

RESTRUCTURING AND ASSET RELATED CHARGES - NET

2019 Asset Related Charges

On August 13, 2019, the Corporation entered into a definitive agreement to sell its acetone derivatives product line to ALTIVIA Ketones & Additives, LLC. As a result of this planned transaction, the Corporation recognized a pretax impairment charge of $75 million. The impairment charge was included in "Restructuring and asset related charges - net" in the consolidated statements of income. See Notes 5 and 18 for additional information.

2017 Restructuring and Asset Related Charges

In September and November 2017, the Corporation approved restructuring actions that were aligned with DowDuPont's synergy targets. As a result of these actions, the Corporation recorded pretax restructuring charges for severance and related benefit costs of $10 million, as well as charges of $62 million for the write-off and write-down of manufacturing and facility assets at multiple UCC sites, including a steam unit in Institute, West Virginia. These charges were shown as "Restructuring and asset related charges ‑ net" in the consolidated statements of income.

In addition to the actions taken in 2017, the Corporation recorded additional restructuring charges for severance and related benefit costs of $4 million in 2019 and $3 million in 2018. These charges were shown as "Restructuring and asset related charges ‑ net” in the consolidated statements of income. At December 31, 2019, severance of $16 million had been paid ($9 million at December 31, 2018), leaving a liability recorded in "Accrued and other current liabilities"of $1 million ($4 million at December 31, 2018), substantially completing the 2017 restructuring program.

2016 Restructuring

On June 27, 2016, the Corporation approved actions to further improve cost effectiveness with additional workforce reductions. As a result of these actions, the Corporation recorded a pretax restructuring charge in 2017 of $2 million for severance and related benefit costs. This charge was shown as "Restructuring and asset related charges - net" in the consolidated statements of income. At December 31, 2017, the liability for severance and related benefit costs was zero, substantially completing the 2016 restructuring program.

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. Future costs are expected to include demolition costs related to the 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.