Other (Charges) Gains, Net



	Year Ended December 31,
	2011		2010		2009
	(In $ millions)
Employee termination benefits	(22	)	(32	)	(105	)
Ticona Kelsterbach plant relocation (Note 27)	(47	)	(26	)	(16	)
Plumbing actions (Note 23)	6		59		10
Insurance recoveries (Note 28)	—		18		6
Asset impairments	(1	)	(74	)	(14	)
Plant/office closures	—		(4	)	(17	)
Commercial disputes	15		13		—
Other	1		—		—
Total	(48	)	(46	)	(136	)

2011

As a result of the Company’s Pardies, France “Project of Closure” and the previously announced closure of the Company’s Spondon, Derby, United Kingdom facility (Note 4), the Company recorded $4 million and $4 million, respectively, of employee termination benefits during the year ended December 31, 2011. Additionally, during the year ended December 31, 2011, the Company recorded $8 million of employee termination benefits related to the relocation of the Company's Ticona Kelsterbach, Germany operations to Frankfurt Hoechst Industrial Park, Germany (Note 27) and $6 million of employee termination benefits related to a business optimization project which is included in the Other Activities segment.

During the year ended December 31, 2011, the Company received consideration of $17 million in connection with the settlement of a claim against a bankrupt supplier. The resolution of this commercial dispute is included in the Acetyl Intermediates segment.

2010

In 2010, the Company concluded that certain long-lived assets were partially impaired at its acetate flake and tow manufacturing operations in Spondon, Derby, United Kingdom (Note 4). Accordingly, the Company wrote down the related property, plant and equipment to its fair value, resulting in long-lived asset impairment losses of $72 million for the year ended December 31, 2010. The Company calculated the fair value using a discounted cash flow model incorporating discount rates commensurate with the risks involved for the reporting unit which is classified as a Level 3 measurement under FASB ASC Topic 820. The key assumptions used in the discounted cash flow valuation model include discount rates, growth rates, cash flow projections and terminal value rates. Discount rates, growth rates and cash flow projections are the most sensitive and susceptible to change as they require significant management judgment.

As a result of the announced closure of the Company's acetate flake and tow manufacturing operations in Spondon, Derby, United Kingdom (Note 4), the Company recorded $15 million of employee termination benefits during the year ended December 31, 2010. The Spondon, Derby, United Kingdom facility is included in the Consumer Specialties segment.

As a result of the Company's Pardies, France “Project of Closure” (Note 4), the Company recorded exit costs of $12 million during the year ended December 31, 2010, which primarily consisted of $6 million in employee termination benefits, $1 million of long-lived asset impairment losses, $3 million of contract termination costs and $3 million of reindustrialization costs. The Pardies, France facility is included in the Acetyl Intermediates segment.

As a result of several business optimization projects undertaken by the Company beginning in 2009 and continuing throughout 2010, the Company recorded $11 million in employee termination costs during the year ended December 31, 2010.

Other charges for the year ended December 31, 2010 also included gains of $13 million, net, related to settlements in resolution of commercial disputes. The settlements were recorded in the Company's Consumer Specialties segment.

2009

During the first quarter of 2009, the Company began efforts to align production capacity and staffing levels with the Company's view of an economic environment of prolonged lower demand. For the year ended December 31, 2009, Other charges included employee termination benefits of $40 million related to this endeavor. As a result of the shutdown of the vinyl acetate monomer (“VAM”) production unit in Cangrejera, Mexico, the Company recognized employee termination benefits of $1 million and long-lived asset impairment losses of $1 million during the year ended December 31, 2009. The VAM production unit in Cangrejera, Mexico is included in the Company's Acetyl Intermediates segment.

As a result of the “Project of Closure” (Note 4), Other charges for the Company included exit costs of $89 million during the year ended December 31, 2009, which consisted of $60 million in employee termination benefits, $17 million of contract termination costs and $12 million of long-lived asset impairment losses related to capitalized costs associated with asset retirement obligations (Note 12). The Pardies, France facility is included in the Acetyl Intermediates segment.

Due to continued declines in demand in automotive and electronic sectors during 2009, the Company announced plans to reduce capacity by ceasing polyester polymer production at its Ticona manufacturing plant in Shelby, North Carolina. Other charges for the year ended December 31, 2009 included employee termination benefits of $2 million and long-lived asset impairment losses of $1 million related to this event. The Shelby, North Carolina facility is included in the Advanced Engineered Materials segment.

The changes in the restructuring reserves by business segment are as follows:



	Advanced Engineered Materials		Consumer Specialties		Industrial Specialties		Acetyl Intermediates		Other		Total
	(In $ millions)
Employee Termination Benefits
As of December 31, 2009	7		4		3		60		7		81
Additions	2		17		—		6		7		32
Cash payments	(6	)	(3	)	(3	)	(37	)	(4	)	(53	)
Other changes	—		(1	)	—		—		—		(1	)
Exchange rate changes	—		(1	)	—		(5	)	—		(6	)
As of December 31, 2010	3		16		—		24		10		53
Additions	8		4		—		1		8		21
Cash payments	(2	)	(2	)	—		(20	)	(4	)	(28	)
Other changes	—		—		—		—		(3	)	(3	)
Exchange rate changes	(1	)	—		—		—		—		(1	)
As of December 31, 2011	8		18		—		5		11		42

Plant/Office Closures
As of December 31, 2009	—		—		—		17		1		18
Additions	—		—		—		6		—		6
Cash payments	—		—		—		(18	)	—		(18	)
Exchange rate changes	—		—		—		(2	)	—		(2	)
As of December 31, 2010	—		—		—		3		1		4
Additions	—		—		—		—		—		—
Cash payments	—		—		—		(2	)	—		(2	)
Exchange rate changes	—		—		—		—		—		—
As of December 31, 2011	—		—		—		1		1		2
Total	8		18		—		6		12		44