RESTRUCTURING

9 Months Ended

Sep. 30, 2011

Note 4. RESTRUCTURING

The following restructuring and other net charges were recognized:

	Three Months Ended September 30,				Nine Months Ended September 30,
Dollars in Millions	2011		2010		2011		2010
Employee termination benefits	$	4	$	3	$	72	$	40
Other exit costs		4		12		20		10
Provision for restructuring		8		15		92		50
Impairment and loss on sale of manufacturing operations		-		10		-		225
Accelerated depreciation, asset impairment and other shutdown costs		19		27		64		85
Pension curtailment and settlement charges		-		3		-		8
Process standardization implementation costs		5		8		15		27
Gain on sale of product lines, businesses and assets		(12)		-		(12)		-
Total restructuring and other net charges	$	20	$	63	$	159	$	395

Restructuring charges were incurred to streamline the organizational structure of the Company. These charges include termination benefits for approximately 50 and 60 manufacturing, selling, administrative, and research and development personnel across all geographic regions for the three months ended September 30, 2011 and 2010, respectively, and approximately 700 and 540 manufacturing, selling, administrative, and research and development personnel across all geographic regions for the nine months ended September 30, 2011 and 2010, respectively.

Most of the accelerated depreciation, asset impairment and other shutdown costs were included in cost of products sold and primarily relate to the rationalization of the manufacturing network. These assets continue to be depreciated until the cease use date of the facility. In connection with the continued optimization of the Company's manufacturing network, the operations in Latina, Italy were sold to International Chemical Investors, SE (ICI) in May 2010 resulting in a $215 million loss. The loss consisted of a $200 million impairment charge recorded to other income/(expense) attributed to the write-down of assets to fair value less cost of sale when the assets met the held for sale criteria and $15 million of other working capital adjustments and transaction related fees recorded upon closing. Process standardization activities are recognized as incurred in marketing, selling and administrative expense.

The following table represents the activity of employee termination and other exit cost liabilities:

	Nine Months Ended September 30,
Dollars in Millions	2011		2010
Liability at January 1	$	126	$	173
Charges		94		55
Changes in estimates		(2)		(5)
Provision for restructuring		92		50
Foreign currency translation		1		(4)
Spending		(119)		(93)
Liability at September 30	$	100	$	126