RESTRUCTURING AND ASSET RELATED CHARGES (CREDITS) - NET

Restructuring Plans

DowDuPont Cost Synergy Program

In September and November 2017, DowDuPont approved post-merger restructuring actions under the DowDuPont Cost Synergy Program (the "Synergy Program") which is designed to integrate and optimize the organization following the Merger and in preparation for the Intended Business Separations. Based on all actions approved to date under the Synergy Program, the Company expects to record total pretax restructuring charges of approximately $1.3 billion, comprised of approximately $525 million to $575 million of severance and related benefit costs; $400 million to $440 million of asset write-downs and write-offs, and $290 million to $310 million of costs associated with exit and disposal activities.

As a result of these actions, the Company recorded pretax restructuring charges of $687 million in 2017, consisting of severance and related benefit costs of $357 million, asset write-downs and write-offs of $287 million and costs associated with exit and disposal activities of $43 million.

In the first quarter of 2018, the Company recorded pretax restructuring charges of $163 million, consisting of severance and related benefit costs of $104 million, asset write-downs and write-offs of $48 million and costs associated with exit and disposal activities of $11 million. The impact of these charges is shown as "Restructuring and asset related charges (credits) - net" in the consolidated statements of income. The Company expects to record additional restructuring charges during 2018 and 2019 and substantially complete the Synergy Program by the end of 2019.

The following table summarizes the activities related to the Synergy Program. At March 31, 2018, $260 million was included in "Accrued and other current liabilities" ($231 million at December 31, 2017) and $130 million was included in "Other noncurrent obligations" ($118 million at December 31, 2017) in the consolidated balance sheets.



Synergy Program	Severance and Related Benefit Costs			Asset Write-downs and Write-offs			Costs Associated with Exit and Disposal Activities			Total
In millions	Severance and Related Benefit Costs			Asset Write-downs and Write-offs			Costs Associated with Exit and Disposal Activities			Total
2017 restructuring charges	$	357		$	287		$	43		$	687
Charges against the reserve	—			(287		)	—			(287		)
Cash payments	(51		)	—			—			(51		)
Reserve balance at Dec 31, 2017	$	306		$	—		$	43		$	349
Adjustments to the reserve ¹	104			48			11			163
Charges against the reserve	—			(48		)	—			(48		)
Cash payments	(73		)	—			(1		)	(74		)
Reserve balance at Mar 31, 2018	$	337		$	—		$	53		$	390


1.	Included in "Restructuring and asset related charges (credits) - net" in the consolidated statements of income.

The restructuring charges related to the write-down and write-off of assets in the first quarter of 2018 totaled $48 million and primarily related to assets aligned with seed activities.

2016 Restructuring

On June 27, 2016, Dow's Board approved a restructuring plan that incorporated actions related to the ownership restructure of Dow Silicones. These actions, aligned with Dow’s value growth and synergy targets, will result in a global workforce reduction of approximately 2,500 positions, with most of these positions resulting from synergies related to the ownership restructure of Dow Silicones. These actions are expected to be substantially completed by June 30, 2018.

As a result of these actions, the Company recorded pretax restructuring charges of $449 million in the second quarter of 2016, consisting of severance and related benefit costs of $268 million, asset write-downs and write-offs of $153 million and costs associated with exit and disposal activities of $28 million. The following table summarizes the activities related to the Company's 2016 restructuring reserve, which was primarily included in "Accrued and other current liabilities" in the consolidated balance sheets at March 31, 2018 and December 31, 2017.



2016 Restructuring	Severance and Related Benefit Costs			Costs Associated with Exit and Disposal Activities			Total
In millions	Severance and Related Benefit Costs			Costs Associated with Exit and Disposal Activities			Total
Reserve balance at Dec 31, 2017	$	51		$	17		$	68
Adjustments to the reserve ¹	—			(1		)	(1		)
Cash payments	(14		)	(2		)	(16		)
Reserve balance at Mar 31, 2018	$	37		$	14		$	51


1.	Included in "Restructuring and asset related charges (credits) - net" in the consolidated statements of income.

Dow expects to incur additional costs in the future related to its restructuring activities. Future costs are expected to include demolition costs related to closed facilities and restructuring plan implementation costs; these costs will be recognized as incurred. The Company also expects to incur additional employee-related costs, including involuntary termination benefits, related to its other optimization activities. These costs cannot be reasonably estimated at this time.