Plant Relocation

In November 2006, the Company finalized a settlement agreement with the Frankfurt, Germany Airport ("Fraport") that required the Company to cease operations at its Kelsterbach, Germany POM site and sell the site, including land and buildings, to Fraport, resolving several years of legal disputes related to the planned Fraport expansion. Under the original agreement, Fraport agreed to pay the Company a total of €670 million. Subsequent revisions to the original agreement discounted the total proceeds to €652 million in consideration for accelerating certain payments to the Company.

Title to the land and buildings transferred to Fraport during the three months ended December 31, 2013 upon completion of certain activities as specified in the settlement agreement. The settlement agreement did not require the proceeds from the settlement be used to build or relocate the existing POM operations; however, based on a number of factors, the Company built a new expanded production facility in the Frankfurt Hoechst Industrial Park in the Rhine Main area in Germany.

The Company ceased POM operations at the Kelsterbach, Germany site 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.

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



	Year Ended December 31,			Total From Inception Through December 31, 2013
	2013	2012	2011	Total From Inception Through December 31, 2013
	(In $ millions)
Deferred proceeds ⁽¹⁾	—	—	158	907
Costs expensed	13	7	47	126
Costs capitalized ⁽²⁾	5	35	171	1,132
Lease buyout	—	—	—	22
Employee termination benefits	—	—	8	8
Gain on disposition⁽³⁾	742	—	—	742

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


⁽²⁾	Includes a decrease in accrued capital expenditures of $2 million, $14 million and $33 million for the years ended December 31, 2013, 2012 and 2011, respectively.

⁽³⁾

Upon transfer of title to the land and buildings to Fraport during the three months ended December 31, 2013, deferred proceeds of €651 million were recognized in Gain (loss) on disposition of businesses and assets, net in the consolidated statements of operations. Such proceeds were reduced by assets of €6 million included in Property, plant and equipment, net and €104 million included in noncurrent Other assets in the consolidated balance sheets.