Dow Chemical 2009 Annual Report Download - page 125

Table of Contents
2008 Restructuring Charges by Operating Segment
In millions
Impairment of
Long-Lived
Assets and Other
Assets
Costs associated
with Exit or
Disposal
Activities Severance Costs Total
Electronic and Specialty Materials $ 10 - - $ 10
Coatings and Infrastructure 15 $ 1 - 16
Performance Systems 67 1 - 68
Performance Products 39 - - 39
Basic Plastics 96 2 - 98
Basic Chemicals 86 20 - 106
Hydrocarbons and Energy 15 3 - 18
Corporate 8 101 $ 321 430
Total 2008 restructuring charges $ 336 $ 128 $ 321 $ 785
Adjustments to 2007 restructuring charge:
Performance Systems - 2 - 2
Health and Agricultural Sciences - 3 - 3
Basic Plastics 30 20 - 50
Corporate - 5 - 5
Adjustments to 2006 restructuring charge:
Basic Chemicals - (3) - (3)
Corporate - - (3) (3)
Net 2008 restructuring charges $ 366 $ 155 $ 318 $ 839
Details regarding the components of the 2008 restructuring charges are discussed below:
Impairment of Long-Lived Assets and Other Assets
The restructuring charges related to the write-down or write-off of assets in 2008 totaled $336 million and included the impact of plant closures and
impairments of $288 million. The most significant write-downs were related to Dow’s facilities located in Oyster Creek, Freeport, Seadrift and Texas City,
Texas; Pittsburg, California; Terneuzen, The Netherlands; Varennes, Quebec, Canada; Plaquemine, Louisiana; Aratu, Brazil; King’s Lynn and Wilton,
England; assets related to the pending sale of the automotive sealants business in Europe; and project investment costs related to a potential joint venture in
Oman. Details regarding these write-downs or write-offs are as follows:
·Due to a severe economic downturn, the Company decided in the fourth quarter of 2008 to shut down a number of facilities, including the following:
·Chlor-alkali manufacturing facility in Oyster Creek, Texas. A $31 million write-off of the net book value of the related buildings, machinery
and equipment against the Basic Chemicals segment was recorded in the fourth quarter of 2008. This facility was shut down in the first quarter
of 2009.
·Styrene and styrene derivatives manufacturing facilities principally in Freeport, Texas; Pittsburg, California; Terneuzen, The Netherlands;
King’s Lynn, England; and Varennes, Canada. A $37 million write-off of the net book value of the related buildings, machinery and equipment
was recorded in the fourth quarter of 2008 against the Hydrocarbons and Energy ($14 million), Basic Plastics ($6 million), Performance
Products ($10 million) and Coatings and Infrastructure ($2 million) segments, as well as Corporate ($5 million). The facilities were shut down
in the fourth quarter of 2009.
·Facilities that manufacture NORDEL™ hydrocarbon rubber in Seadrift, Texas, and TYRIN™ chlorinated polyethylene in Plaquemine,
Louisiana. A $36 million write-down of the net book value of the related buildings, machinery and equipment against the Performance Systems
segment was recorded in the fourth quarter of 2008. Both facilities were closed in the first quarter of 2009.
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