Acquisitions, Dispositions and Plant Closures

Acquisitions

In October 2014, the Company completed the acquisition of substantially all of the assets of Cool Polymers, Inc., including CoolPoly^®, a portfolio of thermally conductive polymers for cash plus contingent consideration (Note 25), to support the strategic growth of the Company's engineered materials business. The acquired operations are included in the Company's Advanced Engineered Materials segment.

Pro forma financial information since the respective acquisition date has not been provided as the acquisition did not have a material impact on the Company's financial information. The Company allocated the purchase price of the acquisition to identifiable assets based on their estimated fair values. The excess of the purchase price over the aggregate fair values was recorded as goodwill (Note 2 and Note 11).

Plant Closures


•	Lanaken, Belgium

On April 22, 2015, the Company announced its intention to consult with employee representatives on a potential 50% capacity reduction at its acetate tow facility in Lanaken, Belgium. On December 1, 2015, the Company announced it had completed the consultation process pursuant to which the Company ceased 50% of manufacturing operations in December 2015. The Lanaken, Belgium operations are included in the Company's Consumer Specialties segment.

The exit costs and plant shutdown costs related to the capacity reduction at the Lanaken facility (Note 18) are as follows:



	Year Ended December 31,
	2015
	(In $ millions)
Employee termination benefits⁽¹⁾	(24	)
Accelerated depreciation	(10	)
Total	(34	)

______________________________


⁽¹⁾	Included in Other (charges) gains, net in the consolidated statements of operations.


•	Tarragona, Spain

In March 2015, the Company launched a sale process for its conventional and vinyl acetate ethylene ("VAE") emulsions facilities in Tarragona, Spain. On December 4, 2015, the Company announced the sale of its conventional emulsions production facility. The Company was unable to find a credible buyer for the VAE emulsions facility, resulting in its closure. The Company completed the information and consultation process with employee representatives pursuant to which the Company ceased all manufacturing operations at the VAE emulsions facility. The Tarragona, Spain operations are included in the Company's Industrial Specialties segment.

The exit costs and plant shutdown costs related to the closure of the Tarragona VAE facility and the sale of the conventional facility (Note 18) are as follows:



	Year Ended December 31,
	2015
	(In $ millions)
Employee termination benefits⁽¹⁾	(6	)
Asset impairments⁽¹⁾	(1	)
Accelerated depreciation	(9	)
Total	(16	)

______________________________


⁽¹⁾	Included in Other (charges) gains, net in the consolidated statements of operations.


•	Meredosia, Illinois

On December 15, 2015, the Company ceased operation of its VAE emulsions facility in Meredosia, Illinois. The Meredosia, Illinois operations are included in the Company's Industrial Specialties segment.

The exit costs and plant shutdown costs related to the closure of the Meredosia, Illinois VAE facility (Note 18) are as follows:



	Year Ended December 31,
	2015
	(In $ millions)
Employee termination benefits⁽¹⁾	(1	)
Asset impairments⁽¹⁾	(1	)
Accelerated depreciation	(19	)
Other	(1	)
Total	(22	)

______________________________


⁽¹⁾	Included in Other (charges) gains, net in the consolidated statements of operations.

During the year ended December 31, 2015, the Company also recorded $39 million in accelerated depreciation expense related to property, plant and equipment no longer in use at the Company's ethanol technology development unit in Clear Lake, Texas. The accelerated depreciation is included in Research and development expenses in the consolidated statements of operations and is included in the Company's Acetyl Intermediates segment.

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. Upon completion of certain activities as specified in the settlement agreement, title to the land and buildings transferred to Fraport during the three months ended December 31, 2013, and deferred proceeds of €651 million were recognized in Gain (loss) on disposition of businesses and assets, net in the consolidated statements of operations. The activity was included in the Company's Advanced Engineered Materials segment.