Huntsman Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Restructuring, Impairment and Plant Closing Costs

Note 7 - Restructuring, Impairment and Plant Closing Costs

6 Months Ended

Jun. 30, 2022

Restructuring and Related Activities Disclosure [Text Block]

7. RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS

As of June 30, 2022 and December 31, 2021, accrued restructuring costs by type of cost and initiative consisted of the following (dollars in millions):

	*Workforce reductions*			*Non-cancelable lease and contract termination costs*		*Other restructuring costs*			*Total*
Accrued liabilities as of January 1, 2022	$	28		$	2	$	1		$	31
2022 charges for 2021 and prior initiatives		21			—		3			24
2022 payments for 2021 and prior initiatives		(8	)		—		(4	)		(12	)
Accrued liabilities as of June 30, 2022	$	41		$	2	$	—		$	43

Details with respect to our reserves for restructuring, impairment and plant closing costs by segment and initiative are provided below (dollars in millions):

				*Performance*		*Advanced*			*Textile*			*Corporate*
	*Polyurethanes*			*Products*		*Materials*			*Effects*			*and Other*			*Total*
Accrued liabilities as of January 1, 2022	$	9		$	1	$	5		$	5		$	11		$	31
2022 (credits) charges for 2021 and prior initiatives		7			—		—			—			17			24
2022 payments for 2021 and prior initiatives		(4	)		—		(1	)		(2	)		(5	)		(12	)
Accrued liabilities as of June 30, 2022	$	12		$	1	$	4		$	3		$	23		$	43

Current portion of restructuring reserves	$	12		$	1	$	4		$	—		$	15		$	32
Long-term portion of restructuring reserves		—			—		—			3			8			11

Details with respect to cash and noncash restructuring charges from continuing operations for the three and six months ended June 30, 2022 and 2021 are provided below (dollars in millions):

	*Three months*				*Six Months*
	*ended*				*ended*
	*June 30,*				*June 30,*
	*2022*		*2021*		*2022*		*2021*
Cash charges:
2022 charges for 2021 and prior initiatives	$	24	$	—	$	24	$	—
2021 charges for 2020 and prior initiatives		—		4		—		18
2021 charges for 2021 initiatives		—		—		—		2
Noncash charges:
Other noncash charges		—		7		—		15
Total restructuring, impairment and plant closing costs	$	24	$	11	$	24	$	35

Restructuring Activities

Beginning in the first quarter of 2021, our Corporate function implemented a restructuring program to optimize our global approach to leveraging shared services capabilities. During the second quarter of 2022, this program was further expanded to include additional geographies. In connection with this restructuring program, we recorded net restructuring expense of approximately $17 million and $15 million in the six months ended June 30, 2022 and 2021, respectively, primarily related to workforce reductions. We expect to record further restructuring expenses of approximately $5 million through 2023.

Beginning in the third quarter of 2020, our Polyurethanes segment implemented a restructuring program to optimize its downstream footprint. During the second quarter of 2022, this optimization program was further expanded to include the entire Polyurethanes business. In connection with this restructuring program, we recorded net restructuring expense of approximately $7 million and $6 million in the six months ended June 30, 2022 and 2021, respectively, primarily related to workforce reductions. We expect to record further restructuring expenses of approximately $9 million through the end of 2023.

Beginning in the second quarter of 2020, our Advanced Materials segment implemented restructuring programs in connection with the CVC Thermoset Specialties Acquisition, the alignment of the segment’s commercial organization and optimization of the segment’s manufacturing processes. There were no significant restructuring costs incurred during both the six months ended June 30, 2022 and 2021. We expect to record further restructuring expenses of approximately $8 million through the end of 2023.