Dow Chemical 2009 Annual Report Download - page 87

Table of Contents
·Included in the liabilities assumed with the April 1, 2009 acquisition of Rohm and Haas was a reserve of $122 million for severance and employee
benefits for the separation of 1,255 employees associated with Rohm and Haas’ 2008 restructuring initiatives. The separations resulted from plant
shutdowns, production schedule adjustments, productivity improvements and reductions in support services. These restructuring activities are
scheduled to be completed during the next two years.
The restructuring activities related to the 2007 Plan, the 2008 Plan, the 2009 Plan and the severance reserve assumed from Rohm and Haas are expected to
result in additional cash expenditures of approximately $468 million over the next two years related to severance costs, contract termination fees, asbestos
abatement and environmental remediation (see Note C to the Consolidated Financial Statements). The Company expects to incur future costs related to its
restructuring activities, as the Company continually looks for ways to enhance the efficiency and cost effectiveness of its operations to ensure competitiveness
across its businesses and across geographic areas. Future costs are expected to include demolition costs related to the closed facilities, which will be recognized
as incurred. The Company also expects to incur additional employee-related costs, including involuntary termination benefits and pension plan settlement
costs, related to its other optimization activities. These costs cannot be reasonably estimated at this time.
Working Capital at December 31
In millions 2009 2008
Current assets $ 19,560 $ 16,060
Current liabilities 13,106 13,108
Working capital $ 6,454 $ 2,952
Current ratio 1.49:1 1.23:1
At December 31, 2009, trade receivables were $5.7 billion, up from $3.8 billion at December 31, 2008, primarily driven by the acquisition of Rohm and
Haas. Days-sales-outstanding-in-receivables (excluding the impact of sales of receivables) was 45 days at December 31, 2009 compared with 42 days at
December 31, 2008, with the increase primarily due to the acquisition of Rohm and Haas. At December 31, 2009, total inventories were $6.8 billion, up from
$6.0 billion at December 31, 2008, which reflects the acquisition of inventories from Rohm and Haas. Days-sales-in-inventory at December 31, 2009 was
64 days versus 58 days at December 31, 2008.
Total Debt at December 31
In millions 2009 2008
Notes payable $ 2,139 $ 2,360
Long-term debt due within one year 1,082 1,454
Long-term debt 19,152 8,042
Total debt $ 22,373 $ 11,856
Debt as a percent of total capitalization 51.4% 45.7%
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