Plant Relocation

In November 2006, the Company finalized a settlement agreement with the Frankfurt, Germany Airport (“Fraport”) to relocate the Kelsterbach, Germany Ticona operations resolving several years of legal disputes related to the planned Fraport expansion. As a result of the settlement, the Company transitioned Ticona’s operations from Kelsterbach to the Frankfurt Hoechst Industrial Park in the Rhine Main area in Germany. Under the original agreement, Fraport agreed to pay the Company a total of €670 million to offset costs associated with the transition of the operations from its prior location and the closure of the Kelsterbach plant. The Company subsequently expanded the scope of the new production facilities.

The Company received its final payment from Fraport of €110 million in June 2011 and ceased POM operations at the Kelsterbach, Germany Ticona facility prior to July 31, 2011. In September 2011, the Company announced the opening of its new POM production facility in Frankfurt Hoechst Industrial Park, Germany.

The Fraport agreement requires the Company to complete certain activities no later than December 31, 2013 at which time title to the site will transfer to Fraport. Assets of €70 million included in Property, plant and equipment, net and €39 million included in noncurrent Other assets in the unaudited consolidated balance sheets will be transferred to Fraport or otherwise disposed of upon the transfer of title to Fraport.

A summary of the financial statement impact associated with the Ticona Kelsterbach plant relocation is as follows:



	Three Months Ended		Total From Inception Through
	March 31,		Total From Inception Through
	2012	2011	March 31, 2012
	(In $ millions)
Deferred proceeds ⁽¹⁾	—	—	907
Costs expensed	—	13	106
Costs capitalized ⁽²⁾	13	49	1,105
Lease buyout	—	—	22
Employee termination benefits	—	—	8

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⁽¹⁾	Included in noncurrent Other liabilities in the unaudited consolidated balance sheets. Amounts reflect the US dollar equivalent at the time of receipt.


⁽²⁾	Includes a decrease in accrued capital expenditures of $8 million and $5 million for the three months ended March 31, 2012 and 2011, respectively.