Acquisitions, Dispositions, Ventures and Plant Closures

Acquisitions

In January 2012, the Company completed the acquisition of certain assets from Ashland Inc., including two product lines, Vinac^® and Flexbond^®, to support the strategic growth of the Company's emulsion polymers business. In February 2011, the Company acquired a business primarily consisting of emulsions process technology from Crown Paints Limited. Both of the acquired operations are included in the Industrial Specialties segment. Pro forma financial information since the respective acquisition dates has not been provided as the acquisitions did not have a material impact on the Company’s financial information.

The Company allocated the purchase price of the acquisitions to identifiable intangible assets acquired based on their estimated fair values. The excess of purchase price over the aggregate fair values was recorded as goodwill. Intangible assets were valued using the relief from royalty and discounted cash flow methodologies, which are considered Level 3 measurements under FASB ASC Topic 820. The relief from royalty method estimates the Company’s theoretical royalty savings from ownership of the intangible asset. Key assumptions used in this model include discount rates, royalty rates, growth rates, sales projections and terminal value rates, all of which require significant management judgment and, therefore, are susceptible to change. 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. The Company, with the assistance of third-party valuation consultants, calculated the fair value of the intangible assets acquired to allocate the purchase price at the acquisition date.

Ventures

On May 15, 2013, the Company and Mitsui & Co., Ltd., of Tokyo, Japan ("Mitsui"), signed an agreement to establish a joint venture for the production of methanol at the Company's integrated chemical plant in Clear Lake, Texas. The planned methanol unit will utilize natural gas in the US Gulf Coast region as a feedstock and will benefit from the existing infrastructure at the Company's Clear Lake facility. The planned methanol facility will have an annual capacity of 1.3 million tons and is expected to be operational in the second half of 2015. The Company has incurred pre-formation costs, including costs for long lead time materials, which are subject to reimbursement from Mitsui and are included in Non-trade receivables, net in the consolidated balance sheets (Note 6).

Plant Closures

• Roussillon, France

On November 4, 2013, the Company announced its intent to initiate an information and consultation process on the contemplated closure of its acetic anhydride facility in Roussillon, France. On December 10, 2013, the Company announced it had completed the consultation process pursuant to which the Company ceased all manufacturing operations in December 2013. The Roussillon, France operations are included in the Acetyl Intermediates segment.

The exit costs and plant shutdown costs related to the closure of the Roussillon facility (Note 17) are as follows:



	Year Ended December 31,
	2013
	(In $ millions)
Employee termination benefits	(6	)
Asset impairments	(3	)
Contract termination costs	(3	)
Total exit costs recorded to Other (charges) gains, net	(12	)

Gain (loss) on disposition of assets, net	(1	)
Other	(1	)
Total plant shutdown costs	(2	)

• Tarragona, Spain

On November 4, 2013, the Company announced its intent to initiate an information and consultation process on the contemplated closure of its vinyl acetate monomer ("VAM") facility in Tarragona, Spain. On December 10, 2013, the Company announced it had completed the consultation process pursuant to which the Company ceased all manufacturing operations in December 2013. The Tarragona, Spain VAM operations are included in the Acetyl Intermediates segment.

The exit costs and plant shutdown costs related to the closure of the Tarragona VAM facility (Note 17) are as follows:



	Year Ended December 31,
	2013
	(In $ millions)
Employee termination benefits	(14	)
Asset impairments	(31	)
Contract termination costs	(30	)
Total exit costs recorded to Other (charges) gains, net	(75	)

Gain (loss) on disposition of assets, net	(1	)
Other	(2	)
Total plant shutdown costs	(3	)

• Spondon, Derby, United Kingdom

In August 2010, the Company announced it would consolidate its global acetate manufacturing capabilities by closing its acetate flake and acetate tow manufacturing operations in Spondon, Derby, United Kingdom. In November 2012, the Company ceased manufacturing acetate flake and acetate tow at its Spondon, Derby, United Kingdom site. The Company now serves its cellulose derivatives customers by optimizing its global production network, which includes facilities in Lanaken, Belgium; Narrows, Virginia; and Ocotlan, Mexico, as well as the Company's cellulose derivatives ventures in China. The Spondon, Derby, United Kingdom operations are included in the Consumer Specialties segment.

The exit costs and plant shutdown costs related to the closure of the acetate flake and acetate tow manufacturing operations in Spondon, Derby, United Kingdom are as follows:



	Year Ended December 31,
	2013		2012		2011
	(In $ millions)
Employee termination benefits	—		(5	)	(4	)
Asset impairments	—		(8	)	—
Total exit costs recorded to Other (charges) gains, net	—		(13	)	(4	)

Accelerated depreciation	—		(6	)	(7	)
Other	(3	)	(5	)	(3	)
Total plant shutdown costs	(3	)	(11	)	(10	)