Restructuring, Facility Consolidation and Severance Charges

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring, Facility Consolidation and Severance Charges

During the Successor three and nine months ended September 30, 2020, in response to the impact on our business from the COVID-19 pandemic and the significant decline in demand, we initiated additional immediate actions and developed plans to reduce our future cost structure. As a result, during the Successor three and nine months ended September 30, 2020, we incurred restructuring and severance charges of $31 million and $114 million, respectively in “Restructuring, Facility and Severance” on the accompanying Condensed Consolidated Statements of Operations. Additional charges with respect to our ongoing cost reduction actions are expected to be recorded through the remainder of 2020 and could result in additional charges in future periods as we execute and revise our plans.

The following table presents restructuring and severance charges for the Successor Period and Predecessor Period.


	Successor		Predecessor		Successor		Predecessor
	Three Months Ended		Three Months Ended		Nine Months Ended		Nine Months Ended
(Dollars in millions)	9/30/2020		9/30/2019		9/30/2020		9/30/2019
Severance Charges	$	31	$	7	$	109	$	10
Facility Consolidation and Other Charges	—		40		5		69
Asset Related Charges (non-cash)	—		6		—		14
Total Restructuring and Severance Charges	$	31	$	53	$	114	$	93

The following table presents total restructuring and severance charges by reporting segment and Corporate for the Successor Period and Predecessor Period.










	Successor		Predecessor		Successor		Predecessor
	Three Months Ended		Three Months Ended		Nine Months Ended		Nine Months Ended
(Dollars in millions)	9/30/2020		9/30/2019		9/30/2020		9/30/2019
Western Hemisphere	$	17	$	21	$	58	$	36
Eastern Hemisphere	12		4		29		11
Corporate	2		28		27		46
	$	31	$	53	$	114	$	93

The following table presents total restructuring and severance accrual activity charges, payments and other changes for the Successor Period ended September 30, 2020.


(Dollars in millions)	Accrued Balance at December 31, 2019		Charges		Cash Payments		Other		Accrued Balance at September 30, 2020
Restructuring and Severance Reserve	$	66	$	114	$	(109)	$	(15)	$	56