Restructuring and Long-Lived Asset Impairment Charges

3 Months Ended

Mar. 31, 2012

Restructuring and Long-Lived Asset Impairment Charges [Abstract]

Restructuring and Long-Lived Asset Impairment Charges

3.     Restructuring and Long-Lived Asset Impairment Charges

We recorded restructuring charges totaling $2 million during the first quarter of 2012. These charges included $1 million for severance related to our December 2011 salaried workforce reduction and $1 million for exit costs related to production facilities closed in prior years.

RESTRUCTURING RESERVES

Restructuring reserves totaling $31 million were included in accrued expenses and other liabilities on the condensed consolidated balance sheet as of March 31, 2012. Total cash payments charged against the restructuring reserve in the first three months of 2012 amounted to $5 million. We expect future payments to be approximately $8 million during the remainder of 2012, $8 million in 2013 and $15 million after 2013. All restructuring-related payments in the first three months of 2012 were funded with cash on hand. We expect that the future payments will be funded with cash from operations or cash on hand. The restructuring reserve is summarized as follows:

	Balance		2012 Activity				Balance
(millions)	as of 12/31/11		Cash Charges		Payments		as of 3/31/12
Severance		$      4		$    1		$    (3)		$      2
Lease obligations		21		-		(1)		20
Other exit costs		9		1		(1)		9
Total		$    34		$    2		$    (5)		$    31

2011

During the first quarter of 2011, we recorded restructuring and long-lived asset impairment charges totaling $9 million. These charges included $4 million for severance related to a salaried workforce reduction program and a 2011 cost reduction initiative for L&W Supply Corporation, $1 million for long-lived asset impairment related to an asset that was written down to its net realizable value, $1 million for lease obligations, and $3 million for exit costs related to production facilities closed in prior years.