Other (Charges) Gains, Net



	Year Ended December 31,
	2013		2012		2011
	(In $ millions)
Employee termination benefits	(23	)	(6	)	(22	)
Kelsterbach plant relocation (Note 27)	(13	)	(7	)	(47	)
Plumbing actions	—		5		6
Asset impairments	(81	)	(8	)	(1	)
Plant/office closures	(33	)	—		—
Commercial disputes	(8	)	2		15
Other	—		—		1
Total	(158	)	(14	)	(48	)

2013

During the three months ended December 31, 2013, the Company recorded $6 million of employee termination benefits, $3 million of contract termination costs and $3 million of long-lived asset impairment losses related to the December 2013 closure of its acetic anhydride facility in Roussillon, France. In addition, the Company recorded $14 million of employee termination benefits, $30 million of contract termination costs and $31 million of long-lived asset impairment losses as a result of the December 2013 closure of its VAM facility in Tarragona, Spain. The long-lived asset impairment losses related to both the Company's Roussillon acetic anhydride facility and Tarragona VAM facility were measured at the dates of impairment to fully write-off the related property, plant and equipment at both facilities (Note 4).

During the three months ended December 31, 2013, the Company determined its Singapore acetic acid production unit should be assessed for impairment based on local market conditions affecting demand for acetic acid and downstream products, the cost to operate the unit, contractual obligations and an interim arbitration ruling (Note 23). As a result, the Company concluded that the long-lived assets at its Singapore acetic acid production unit were fully impaired. Accordingly, the Company recorded long-lived asset impairment losses, measured at the date of impairment, of $46 million to fully write-off the related property, plant and equipment. The Singapore acetic acid operations are included in the Acetyl Intermediates segment.

The Company calculated the respective fair values of the long-lived assets of the Roussillon, France acetic anhydride facility, the Tarragona, Spain VAM facility and the Singapore acetic acid unit using a discounted cash flow model incorporating discount rates commensurate with the risks involved for each of the reporting units. This fair value measurement of long-lived assets is classified as Level 3 measurements under FASB ASC Topic 820. The key assumptions used in the discounted cash flow valuation models included discount rates, growth rates, cash flow projections and terminal value rates. Discount rates, growth rates and cash flow projections involve significant judgment and are based on management's estimate of current and forecasted market conditions and cost structure.

2012

During the year ended December 31, 2012, the Company recorded $5 million of employee termination benefits, related to the closure of the Company's acetate flake and acetate tow manufacturing operations at its Spondon, Derby, United Kingdom site (Note 4). Also during the year ended December 31, 2012, the Company concluded that certain long-lived assets were partially impaired at its acetate flake and acetate tow manufacturing operations in Spondon, Derby, United Kingdom. Accordingly, the Company wrote down the related property, plant and equipment to its fair value of $3 million, measured at the date of impairment, resulting in long-lived asset impairment losses of $8 million for the year ended December 31, 2012. The Company calculated the fair value using a discounted cash flow model incorporating discount rates commensurate with the risks involved for the reporting unit. This fair value measurement of long-lived assets 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 involve significant judgment and are based on management's estimate of current and forecasted market conditions and cost structure.

2011

As a result of the Company’s Pardies, France "Project of Closure" and the closure of the Company’s acetate flake and acetate tow manufacturing operations at its Spondon, Derby, United Kingdom site, 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 polyacetal ("POM") operations located in Kelsterbach, Germany 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 (Note 23). The resolution of this commercial dispute is included in the Acetyl Intermediates 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, 2011	8		18		—		5		11		42
Additions	—		5		—		2		1		8
Cash payments	(2	)	(11	)	—		(3	)	(3	)	(19	)
Other changes	—		—		—		(1	)	(2	)	(3	)
Exchange rate changes	—		1		—		—		—		1
As of December 31, 2012	6		13		—		3		7		29
Additions	—		—		3		20		—		23
Cash payments	(2	)	(10	)	(1	)	(8	)	(2	)	(23	)
Other changes	—		—		—		—		(1	)	(1	)
Exchange rate changes	—		—		—		1		—		1
As of December 31, 2013	4		3		2		16		4		29
Plant/Office Closures
As of December 31, 2011	—		—		—		1		1		2
Additions	—		—		—		—		—		—
Cash payments	—		—		—		—		—		—
Other changes	—		—		—		—		(1	)	(1	)
Exchange rate changes	—		—		—		—		—		—
As of December 31, 2012	—		—		—		1		—		1
Additions	—		—		—		33		—		33
Cash payments	—		—		—		(1	)	—		(1	)
Other changes	—		—		—		—		—		—
Exchange rate changes	—		—		—		—		—		—
As of December 31, 2013	—		—		—		33		—		33
Total	4		3		2		49		4		62