Restructuring Accruals

9 Months Ended

Sep. 30, 2014

6. Restructuring Accruals

Selected information related to the restructuring accruals for the three months ended September 30, 2014 and 2013 is as follows:

	European Asset Optimization			Asia Pacific Restructuring			Other Restructuring Actions			Total Restructuring

Balance at July 1, 2014	$	20		$	3		$	42		$	65
Charges	1			73			5			79
Write-down of assets to net realizable value				(46		)				(46		)
Net cash paid, principally severance and related benefits	(3		)	(2		)	(2		)	(7		)
Pension charges transferred to other accounts				(7		)				(7		)
Other, including foreign exchange translation	(2		)	(6		)	(1		)	(9		)
Balance at September 30, 2014	$	16		$	15		$	44		$	75

	European Asset Optimization			Asia Pacific Restructuring			Other Restructuring Actions			Total Restructuring

Balance at July 1, 2013	$	31		$	3		$	49		$	83
Net cash paid, principally severance and related benefits	(5		)				(2		)	(7		)
Other, including foreign exchange translation	1			(1		)	(4		)	(4		)
Balance at September 30, 2013	$	27		$	2		$	43		$	72

Selected information related to the restructuring accruals for the nine months ended September 30, 2014 and 2013 is as follows:

	European Asset Optimization			Asia Pacific Restructuring			Other Restructuring Actions			Total Restructuring

Balance at January 1, 2014	$	30		$	20		$	64		$	114
Charges	1			73			5			79
Write-down of assets to net realizable value				(46		)				(46		)
Net cash paid, principally severance and related benefits	(8		)	(15		)	(22		)	(45		)
Pension charges transferred to other accounts				(7		)				(7		)
Other, including foreign exchange translation	(7		)	(10		)	(3		)	(20		)
Balance at September 30, 2014	$	16		$	15		$	44		$	75

	European Asset Optimization			Asia Pacific Restructuring			Other Restructuring Actions			Total Restructuring

Balance at January 1, 2013	$	53		$	6		$	64		$	123
Charges	7			2			1			10
Write-down of assets to net realizable value	(2		)							(2		)
Net cash paid, principally severance and related benefits	(32		)	(5		)	(17		)	(54		)
Other, including foreign exchange translation	1			(1		)	(5		)	(5		)
Balance at September 30, 2013	$	27		$	2		$	43		$	72

The Company’s decisions to curtail selected production capacity have resulted in write downs of certain long-lived assets to the extent their carrying amounts exceeded fair value or fair value less cost to sell. The Company classified the significant assumptions used to determine the fair value of the impaired assets, which was not material, as Level 3 in the fair value hierarchy as set forth in the general accounting principles for fair value measurements.

European Asset Optimization

During the three and nine months ended September 30, 2014, the Company recorded charges of $1 million of employee costs related to the European Asset Optimization program.

During the nine months ended September 30, 2013, the Company recorded charges of $7 million related to the European Asset Optimization program. These charges represented additional employee costs that the Company was required to record for the furnace closures announced during the fourth quarter of 2012.

Asia Pacific Restructuring

During the three and nine months ended September 30, 2014, the Company recorded charges of $73 million. These charges primarily represented employee costs, write-down of assets, and pension charges that the Company was required to record for the furnace closure announced during the third quarter of 2014.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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