Dow Chemical 2009 Annual Report Download - page 134

Table of Contents
Salt Business Assets and Liabilities Divested
In millions
At Oct. 1,
2009
Current assets $ 374
Property 434
Other intangible assets 1,151
Deferred charges and other assets 102
Assets divested $ 2,061
Current liabilities $ 124
Deferred income tax liabilities - noncurrent 311
Pension and other post retirement benefits 89
Other noncurrent obligations 14
Liabilities divested $ 538
Divestiture of the Calcium Chloride Business
On June 30, 2009, the Company completed the sale of the Calcium Chloride business for net proceeds of $204 million and recognized a pretax gain of
$162 million. The results of the Calcium Chloride business, including the second quarter of 2009 gain on the sale, are reflected as “Income from discontinued
operations, net of income taxes (benefit)” in the consolidated statements of income for all periods presented.
The following table presents the results of discontinued operations:
Discontinued Operations
In millions 2009 2008 2007
Net sales $ 70 $ 153 $ 138
Income before income taxes $ 175 $ 44 $ 37
Provision for income taxes $ 65 $ 16 $ 14
Income from discontinued operations, net of income taxes $ 110 $ 28 $ 23
Divestiture of Investments in Nonconsolidated Affiliates
On September 1, 2009, the Company completed the sale of its ownership interest in Total Raffinaderij Nederland N.V. (“TRN”), a nonconsolidated affiliate,
and related inventory to Total S.A. for $742 million. This sale resulted in a pretax net gain of $457 million, which consisted of a gain of $513 million
reflected in “Sundry income – net” and a charge of $56 million related to the recognition of hedging losses which were recorded to “Cost of sales.”
On September 30, 2009 the Company completed the sale of its ownership interest in the OPTIMAL Group of Companies (“OPTIMAL”), nonconsolidated
affiliates, for net proceeds $660 million to Petroliam Nasional Berhad. This sale resulted in a pretax gain of $339 million included in “Sundry income –net.”
Net proceeds from these divestitures were used to pay down debt.
Subsequent Event
On July 31, 2009, the Company entered into a definitive agreement that included the sale of a portion of its acrylic monomer business and a portion of its
specialty latex business as required as a condition of the FTC’s approval of the Company’s acquisition of Rohm and Haas (see Note D). As a consequence, an
impairment charge of $205 million for these assets was recognized in the second quarter of 2009 restructuring charge (see Note C). The sale was completed on
January 25, 2010 and the impact of this sale is not expected to be material to the Company’s consolidated financial statements.
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