Dow Chemical 2009 Annual Report Download - page 138
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Table of Contents
Excess ethylene glycol produced in Dow’s plants in the United States and Europe is sold to MEGlobal and represented 1 percent of total net sales in 2009
(2 percent of total net sales in 2008 and 2007). In addition, the Company sells ethylene to MEGlobal as a raw material for its ethylene glycol plants in Canada.
The impact of these sales to MEGlobal by operating segment is summarized below:
Impact of Sales to MEGlobal by Operating Segment
Percent of segment sales 2009 2008 2007
Basic Chemicals 11% 14% 21%
Hydrocarbons and Energy 4% 3% 4%
Overall, transactions with other nonconsolidated affiliates and balances due to and due from these entities were not material to the consolidated financial
statements.
NOTE I – GOODWILL AND OTHER INTANGIBLE ASSETS
The following table shows changes in the carrying amount of goodwill for the year ended December 31, 2009, by operating segment:
Goodwill
In millions
Electronic
and
Specialty
Materials
Coatings and
Infrastructure
Health
and Ag
Sciences
Perf
Systems
Perf
Products
Basic
Plastics
Hydrocarbons
and Energy Total
Gross goodwill at Jan. 1,
2009 $ 785 $ 91 $ 1,391 $ 785 $ 427 $ 95 $ 63 $ 3,637
Accumulated
impairments at Jan. 1,
2009 - - - (213) - (30) - (243)
Net goodwill at Jan. 1,
2009 $ 785 $ 91 $ 1,391 $ 572 $ 427 $ 65 $ 63 $ 3,394
Goodwill related to 2009
acquisition of:
Rohm and Haas 5,077 3,881 154 378 118 - - 9,608
Hyland Seed assets - - 1 - - - - 1
Adjustment related to
2008 acquisition of:
Dairyland Seed Co.,
Inc. - - (2) - - - - (2)
Poly-Carb, Inc. - - - (1) - - - (1)
Stevens Roofing
Systems - 3 - - - - - 3
Impairment loss - - - - (7) - - (7)
Foreign currency impact 49 53 - 10 6 - - 118
Net goodwill at Dec. 31,
2009 $ 5,911 $ 4,028 $ 1,544 $ 959 $ 544 $ 65 $ 63 $ 13,114
Accumulated
impairments at
Dec. 31, 2009 - - - 213 7 30 - 250
Gross goodwill at
Dec. 31, 2009 $ 5,911 $ 4,028 $ 1,544 $ 1,172 $ 551 $ 95 $ 63 $ 13,364
The recording of the April 1, 2009 acquisition of Rohm and Haas (see Note D) resulted in goodwill of $9,608 million, which is not deductible for tax
purposes. During 2009, goodwill related to the acquisition of Rohm and Haas was reduced $244 million for net adjustments (including adjustments to the
allocation by business unit) made to the fair values of the assets acquired and liabilities assumed.
106