Dow Chemical 2009 Annual Report Download - page 187

Table of Contents
Operating Segment Information
In millions
Electronic
and
Specialty
Materials
Coatings and
Infrastructure
Health
and Ag
Sciences
Perf
Systems
Perf
Products
Basic
Plastics
Basic
Chemicals
Hydrocarbons
and Energy Corp Total
2009
Sales to external customers $ 4,119 $ 4,156 $ 4,522 $ 5,744 $ 8,996 $ 9,925 $ 2,467 $ 4,241 $ 705 $ 44,875
Intersegment revenues - - - - 51 - 52 - (103) -
Equity in earnings of
nonconsolidated affiliates 290 3 2 4 31 112 163 33 (8) 630
Goodwill impairment losses (1) - - - - 7 - - - - 7
Restructuring charges (2) 68 171 (15) - 73 1 75 65 251 689
IPR&D (3) - - - - - - - - 7 7
Acquisition and integration
related expenses (4) - - - - - - - - 166 166
EBITDA (5) 1,046 367 573 674 1,142 1,665 103 391 (1,133) 4,828
Total assets 17,018 6,663 5,475 5,752 8,363 7,503 2,875 3,645 8,643 65,937
Investment in nonconsolidated
affiliates 1,042 28 38 111 409 883 360 331 22 3,224
Depreciation and amortization 490 375 137 326 554 542 275 - 128 2,827
Capital expenditures 155 133 166 138 240 56 182 296 44 1,410
2008
Sales to external customers $ 2,620 $ 2,654 $ 4,535 $ 7,540 $ 12,216 $ 14,240 $ 4,265 $ 8,968 $ 323 $ 57,361
Intersegment revenues - - - - 97 - 65 - (162) -
Equity in earnings of
nonconsolidated affiliates 370 1 4 (2) 52 115 214 41 (8) 787
Goodwill impairment losses (1) - - - 209 - 30 - - - 239
Restructuring charges (2) 10 16 3 70 39 148 103 18 432 839
IPR&D (3) - - 44 - - - - - - 44
Acquisition and integration
related expenses (4) - - - - - - - - 49 49
Asbestos-related credit (6) - - - - - - - - (54) (54)
EBITDA (5) 835 134 872 235 1,050 1,746 278 (70) (1,005) 4,075
Total assets 4,424 1,544 4,676 5,100 7,365 7,215 3,019 3,233 8,898 45,474
Investment in nonconsolidated
affiliates 889 4 41 111 299 843 479 520 18 3,204
Depreciation and amortization 215 93 111 282 482 648 302 - 103 2,236
Capital expenditures 269 148 191 323 507 186 258 389 5 2,276
2007
Sales to external customers $ 2,071 $ 1,836 $ 3,779 $ 6,597 $ 12,976 $ 14,167 $ 4,434 $ 7,105 $ 410 $ 53,375
Intersegment revenues - - - - 103 5 64 - (172) -
Equity in earnings of
nonconsolidated affiliates 345 1 4 10 56 235 386 87 (2) 1,122
Restructuring charges (2) 27 20 77 155 55 96 7 44 97 578
IPR&D (3) 7 - 50 - - - - - - 57
EBITDA (5) 737 51 576 624 1,991 2,804 952 (45) (854) 6,836
Total assets 4,458 1,351 4,152 5,790 8,805 9,672 3,824 3,370 7,379 48,801
Investment in nonconsolidated
affiliates 953 4 38 78 256 758 579 402 21 3,089
Depreciation and amortization 186 62 109 272 545 626 288 - 102 2,190
Capital expenditures 254 108 116 249 490 176 259 413 10 2,075
(1) See Note I for information regarding the goodwill impairment losses.
(2) See Note C for information regarding restructuring charges.
(3) See Note D for information regarding purchased in-process research and development.
(4) See Note D for information regarding acquisition and integration related expenses.
(5) The Company uses EBITDA (which Dow defines as earnings before interest, income taxes, depreciation and amortization) as its measure of profit/loss for segment reporting
purposes. EBITDA by operating segment includes all operating items relating to the businesses; items that principally apply to the Company as a whole are assigned to Corporate. A
reconciliation of EBITDA to “Income from Continuing Operations Before Income Taxes” is provided below:
In millions 2009 2008 2007
EBITDA $ 4,828 $ 4,075 $ 6,836
- Depreciation and amortization 2,827 2,236 2,190
+ Interest income 39 86 130
- Interest expense and amortization of debt discount 1,571 648 584
Income from Continuing Operations Before Income Taxes $ 469 $ 1,277 $ 4,192
(6) See Note N for information regarding asbestos-related credit.
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