RESTRUCTURING AND ASSET RELATED CHARGES - NET (Notes)

6 Months Ended

Jun. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

RESTRUCTURING AND ASSET RELATED CHARGES - NET

Charges for restructuring programs and other asset related charges, which includes other asset impairments, were $6 million for the three months ended June 30, 2020 ($65 million for the three months ended June 30, 2019) and $102 million for the six months ended June 30, 2020 ($221 million for the six months ended June 30, 2019). These charges were recorded in "Restructuring and asset related charges - net" in the consolidated statements of income.

Restructuring Plans

DowDuPont Cost Synergy Program

In September and November 2017, DowDuPont approved post-merger restructuring actions under the DowDuPont Cost Synergy Program (the "Synergy Program") which was designed to integrate and optimize the organization following the Merger and in preparation for the business separations. The final charges related to restructuring actions under the DowDuPont Cost Synergy Program were incurred in the first quarter of 2020. For the six months ended June 30, 2020, the Company recorded pretax restructuring charges of $90 million for severance and related benefit costs. The Company expects cash expenditures related to the Synergy Program to be substantially complete by the end of 2020. The following table summarizes the activities related to the Synergy Program, which are reflected on a continuing operations basis:

DowDuPont Synergy Program	Severance and Related Benefit Costs		Asset Write-downs and Write-offs		Costs Associated with Exit and Disposal Activities		Total
In millions
Reserve balance at Dec 31, 2018	$	210	$	—	$	7	$	217
Packaging & Specialty Plastics	$	—	$	—	$	1	$	1
Corporate	52		76		15		143
Total restructuring charges	$	52	$	76	$	16	$	144
Charges against the reserve	—		(76)		—		(76)
Cash payments	(79)		—		(4)		(83)
Reserve balance at Mar 31, 2019	$	183	$	—	$	19	$	202
Performance Materials & Coatings	$	—	$	22	$	—	$	22
Corporate	25		7		5		37
Total restructuring charges	$	25	$	29	$	5	$	59
Charges against the reserve	—		(29)		—		(29)
Cash payments	(71)		—		(2)		(73)
Reserve balance at Jun 30, 2019	$	137	$	—	$	22	$	159
Industrial Intermediates & Infrastructure	$	—	$	—	$	5	$	5
Performance Materials & Coatings	—		1		—		1
Corporate	46		4		—		50
Total restructuring charges	$	46	$	5	$	5	$	56
Charges against the reserve	—		(5)		—		(5)
Cash payments	(77)		—		(6)		(83)
Reserve balance at Sep 30, 2019	$	106	$	—	$	21	$	127
Industrial Intermediates & Infrastructure	$	—	$	2	$	—	$	2
Performance Materials & Coatings	—		5		—		5
Corporate	—		26		—		26
Total restructuring charges	$	—	$	33	$	—	$	33
Charges against the reserve	—		(33)		—		(33)
Cash payments	(52)		—		(4)		(56)
Reserve balance at Dec 31, 2019	$	54	$	—	$	17	$	71
Corporate	$	90	$	—	$	—	$	90
Total restructuring charges	$	90	$	—	$	—	$	90
Cash payments	(42)		—		(1)		(43)
Reserve balance at Mar 31, 2020	$	102	$	—	$	16	$	118
Cash payments	(21)		—		(1)		(22)
Reserve balance at Jun 30, 2020	$	81	$	—	$	15	$	96

At June 30, 2020, $83 million of the reserve balance was included in "Accrued and other current liabilities" ($52 million at December 31, 2019) and $13 million was included in "Other noncurrent obligations" ($19 million at December 31, 2019) in the consolidated balance sheets.

The Company recorded pretax restructuring charges of $965 million inception-to-date under the Synergy Program on a continuing operations basis, consisting of severance and related benefit costs of $657 million, asset write-downs and write-offs of $263 million and costs associated with exit and disposal activities of $45 million.

Asset Write-downs and Write-offs

The restructuring charges related to the write-down and write-off of assets related primarily to miscellaneous asset write-downs and write-offs, including the shutdown of several small manufacturing facilities and the write-off of non-manufacturing assets and certain corporate facilities.

Costs Associated with Exit and Disposal Activities

The restructuring charges for costs associated with exit and disposal activities included contract cancellation penalties and environmental remediation liabilities.

The Company expects to incur additional costs in the future related to its restructuring activities. Future costs are expected to include demolition costs related to closed facilities and restructuring plan implementation costs; these costs will be recognized as incurred. The Company 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.

Asset Related Charges

The Company recognized additional pretax impairment charges of $6 million and $12 million for the three and six months ended June 30, 2020, respectively, related to capital additions made to a biopolymers manufacturing facility in Santa Vitoria, Minas Gerais, Brazil, which was impaired in 2017 (charges of $6 million and $18 million for the three and six months ended June 30, 2019). The impairment charges were included in “Restructuring and asset related charges - net” in the consolidated statements of income and related to Packaging & Specialty Plastics. See Note 19 for additional information.