XML 27 R10.htm IDEA: XBRL DOCUMENT v3.7.0.1
Restructuring
12 Months Ended
Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]  
Restructuring and Related Activities Disclosure [Text Block]
Business Realignment Costs

Norco

In the first quarter of 2016, the Company announced a planned rationalization at its Norco, LA manufacturing facility within its Epoxy, Phenolic and Coating Resins segment, and production was ceased at this facility during the second quarter of 2016. The Company has finalized agreements to exit this facility in 2017.

During the year ended December 31, 2016, Company recorded costs of $24 related to the early termination of certain contracts for utilities, site services, raw materials and other items related to this facility rationalization. These costs are included in “Business realignment costs” in the Consolidated Statements of Operations. As of December 31, 2016, $18 of these costs were included in “Other current liabilities” and $3 of these costs were included in “Accounts payable” in the Consolidated Balance Sheets.

As a result of the Norco, LA facility rationalization, the estimated useful lives of certain long-lived assets related to this facility were shortened, and consequently, during the twelve months ended December 31, 2016, the Company incurred $76 of accelerated depreciation related to these assets, which is included in “Cost of sales” in the Consolidated Statements of Operations.

In addition, at June 30, 2016 the Company recorded a conditional asset retirement obligation (“ARO”) of $30 related to certain contractually obligated future demolition, decontamination and repair costs associated with this facility rationalization. This resulted in an additional $30 of accelerated depreciation related to this ARO for the year ended December 31, 2016, which is also included in “Cost of sales” in the Consolidated Statements of Operations. In the third quarter of 2016, this ARO liability was reduced by $11 as a result of revised cost estimates, primarily due to a reduction in the scope of expected future demolition. This $11 reduction in costs is included in “Business realignment costs” in the Consolidated Statements of Operations for the year ended December 31 2016. As of December 31, 2016, the outstanding ARO liability of $13 was included in “Other current liabilities” and $2 was included in “Accounts payable” in the Consolidated Balance Sheets.
    
Lastly, during the year ended December 31, 2016, the Company incurred additional costs of $16 related to abnormal production overhead, severance and other expenses to the facility closure. These costs are included in “Business realignment costs” in the Consolidated Statements of Operations.

Oilfield

In addition, during the third quarter of 2016, the Company indefinitely idled two oilfield manufacturing facilities within its Epoxy, Phenolic and Coating Resins segment, and production was ceased at these facilities. As a result, the estimated useful lives of certain long-lived assets related to these facilities were shortened, and consequently, during the year ended December 31, 2016, the Company incurred $21 of accelerated depreciation related to these assets, which is included in “Cost of sales” in the Consolidated Statements of Operations.

Other
    
Also included within “Business realignment costs” in the Consolidated Statements of Operations for the year ended December 31, 2016 are miscellaneous severance, environmental and other costs related to certain in-process cost reduction programs.