Dow Chemical 2011 Annual Report Download - page 145

51
Corporate
Actual Results
In millions
Sales
EBITDA
2011
$ 325
$ (1,507)
2010
$ 332
$ (1,472)
2009
$ 693
$ (1,168)
Corporate
2011 Actual Versus 2010 Actual
2010 Actual Versus 2009 Pro Forma
In millions
Sales
Equity earnings (loss)
EBITDA
Certain items impacting EBITDA
2011
$ 325
$ (39)
$ (1,507)
$ (513)
2010
$ 332
$ (16)
$ (1,472)
$ (230)
2009
$ 1,083
$ (8)
$ (1,127)
$ (623)
2011 Actual Versus 2010 Actual
Sales for Corporate, which primarily relate to the Company's insurance operations, were $325 million in 2011 down slightly
from $332 million in 2010.
EBITDA for 2011 was a loss of $1,507 million, compared with a loss of $1,472 million in 2010. EBITDA for 2011 was
negatively impacted by a $482 million loss related to the early extinguishment of debt, $31 million of integration costs related
to the April 1, 2009 acquisition of Rohm and Haas, and foreign currency exchange losses. Compared with the same period last
year, EBITDA was favorably impacted by a decrease in performance-based compensation costs (including stock-based
compensation and decreased participation in the Employees' Stock Purchase Plan), $25 million in dividend income related to
the Company's ownership interest in Styron, gains on the sale of various businesses and lower Corporate expenses.
EBITDA for 2010 was reduced by integration costs of $143 million related to the acquisition of Rohm and Haas,
$50 million of labor-related litigation costs, a charge of $47 million for an obligation related to a past divestiture, and a
$46 million loss on the early extinguishment of debt. EBITDA for 2010 was favorably impacted by a $54 million reduction in
the asbestos-related liability and $2 million in net adjustments to prior year restructuring plans.
2010 Actual Versus 2009 Pro Forma
Sales for Corporate, which for 2010 primarily related to the Company’s insurance operations, were $332 million in 2010, down
from $1,083 million in 2009, which also included the sales of Morton International, Inc. (“Morton,” the Salt business acquired
with the Rohm and Haas acquisition) through the fourth quarter of 2009 divestiture of the business.
EBITDA for 2010 was a loss of $1,472 million, compared with a loss of $1,127 million in 2009. EBITDA for 2010 was
lower due to increased performance-based compensation (including stock-based compensation and increased expense related to
higher employee participation in the Employees’ Stock Purchase Plan) and the absence of earnings from Morton. Additionally,
EBITDA was reduced by integration costs of $143 million related to the acquisition of Rohm and Haas, $50 million of labor-
related litigation costs, a charge of $47 million for an obligation related to a past divestiture, and a $46 million loss on the early
extinguishment of debt. EBITDA for 2010 was favorably impacted by a $54 million reduction in the asbestos-related liability
and $2 million in net adjustments to prior year restructuring plans.
EBITDA for 2009 was reduced by costs related to the April 1, 2009 acquisition of Rohm and Haas of $362 million,
including $166 million of other transaction and integration costs expensed in accordance with the accounting guidance for
business combinations, $60 million of acquisition-related retention expenses, a $56 million loss on the early extinguishment of
debt, and $80 million of transaction and other acquisition costs incurred by Rohm and Haas prior to the April 1, 2009
acquisition. EBITDA was also impacted by $224 million of 2009 restructuring charges, including employee-related severance
expenses of $155 million, environmental obligations of $64 million, and $5 million of asset write-offs; plus $28 million in
adjustments related to prior year restructuring plans. EBITDA for 2009 was further reduced by a $7 million IPR&D write-off
and $2 million of costs related to the 2008 hurricanes.