Dow Chemical 2013 Annual Report Download - page 78
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56
increase in the value of the outstanding guarantees during 2013 is primarily related to debt obligations of Sadara Chemical
Company, a nonconsolidated affiliate, which are guaranteed by the Company, in proportion to the Company's ownership
interest, or up to approximately $4.4 billion when the project financing is fully drawn. The Guarantees will be released upon
completion of construction of the Sadara complex and satisfactory fulfillment of certain other conditions, including passage of
an extensive operational testing program, which is currently anticipated for the end of 2017. Additional information related to
these guarantees can be found in the “Guarantees” section of Note 14 to the Consolidated Financial Statements.
Fair Value Measurements
See Note 10 to the Consolidated Financial Statements for information related to other-than-temporary impairments; see Note 11
for additional information concerning fair value measurements, including the Company’s interests held in trade receivable
conduits; and, see Note 17 for information related to fair value measurements of pension and other postretirement benefit plan
assets.
OUTLOOK
Dow enters 2014 accelerating its progress towards improving return on capital, growing profitability and generating cash. The
Company continues to focus on attractive end-use markets as evidenced by divesting non-strategic assets and prioritizing high
return projects to maximize value for our shareholders. Throughout the year, Dow will continue to benefit from the restart of an
ethylene facility in Louisiana, lower pension expenses and continued cost savings actions.
While there have been positive trends indicating an improvement in the global economy, the Company believes business
uncertainty will continue as global growth remains tentative. The Company’s 2014 business plan assumes a macroeconomic
environment that is largely unchanged from 2013.
Dow will continue to allocate capital carefully, focusing on highly-accretive growth projects. The Company’s strategic
investments in the U.S. Gulf Coast and the Middle East are progressing on time and on budget, as Dow maintains an active
focus on investments that position the Company for long-term financial growth. Dow’s actions are expected to continue to
create earnings momentum and increasingly reward our shareholders.