Dow Chemical 2009 Annual Report Download - page 158

Table of Contents
The following table shows changes in the aggregate carrying amount of the Company’s asset retirement obligations:
Asset Retirement Obligations
In millions 2009 2008
Balance at January 1 $ 106 $ 116
Additional accruals (1) 7 7
Assumed from Rohm and Haas (2) 13 -
Sold with Salt business (3) (12) -
Liabilities settled (21) (14)
Accretion expense 1 3
Revisions in estimated cash flows 1 1
Other 6 (7)
Balance at December 31 $ 101 $ 106
(1) In 2008, the Company recognized asset retirement obligations of $4 million related to the 2008
restructuring plan (see Note C).
(2) See Note D.
(3) See Note E.
The discount rate used to calculate the Company’s asset retirement obligations at December 31, 2009 was 2.45 percent (7.13 percent at December 31,
2008). These obligations are included in the consolidated balance sheets as “Other noncurrent obligations.”
The Company has not recognized conditional asset retirement obligations for which a fair value cannot be reasonably estimated in its consolidated
financial statements. Assets that have not been submitted/reviewed for potential demolition activities are considered to have continued usefulness and are
generally still operating normally. Therefore, without a plan to demolish the assets or the expectation of a plan, such as shortening the useful life of assets for
depreciation purposes in accordance with the accounting guidance related to property, plant and equipment, the Company is unable to reasonably forecast a
time frame to use for present value calculations. As such, the Company has not recognized obligations for individual plants/buildings at its manufacturing
sites where estimates of potential settlement dates cannot be reasonably made. In addition, the Company has not recognized conditional asset retirement
obligations for the capping of its approximately 52 underground storage wells at Dow-owned sites when there are no plans or expectations of plans to exit the
sites. It is the opinion of the Company’s management that the possibility is remote that such conditional asset retirement obligations, when estimable, will have
a material adverse impact on the Company’s consolidated financial statements based on current costs.
NOTE O – NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES
Notes Payable at December 31
In millions 2009 2008
Commercial paper $ 721 $ 1,597
Notes payable to banks 1,285 661
Notes payable to related companies 131 102
Notes payable trade 2 -
Total notes payable $ 2,139 $ 2,360
Year-end average interest rates 2.18% 4.04%
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