Dow Chemical 2011 Annual Report Download - page 179

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requirements related to the level of disaggregation and input and valuation techniques. See Note K for additional information
about fair value measurements.
On January 1, 2010, the Company adopted ASU 2009-17, “Consolidations (Topic 810): Improvements to Financial
Reporting by Enterprises Involved with Variable Interest Entities,” which amended the consolidation guidance applicable to
variable interest entities and required additional disclosures concerning an enterprise’s continuing involvement with variable
interest entities. The adoption resulted in the consolidation of two additional joint ventures, an owner trust and an entity that
was used to monetize accounts receivable. At January 1, 2010, $793 million in assets (net of tax, including the impact on
“Investment in nonconsolidated affiliates”), $941 million in liabilities, $100 million in noncontrolling interests and a
cumulative effect adjustment to retained earnings of $248 million were recorded as a result of the adoption of this guidance.
See Note S for additional information about variable interest entities.
On January 1, 2010, the Company adopted ASU 2009-16, “Transfers and Servicing (Topic 860): Accounting for Transfers
of Financial Assets.” This ASU was intended to improve the information provided in financial statements concerning transfers
of financial assets, including the effects of transfers on financial position, financial performance and cash flows, and any
continuing involvement of the transferor with the transferred financial assets. The Company evaluated the impact of adopting
the guidance and the terms and conditions in place at January 1, 2010 and determined that certain sales of accounts receivable
would be classified as secured borrowings. Under the Company’s sale of accounts receivable arrangements, $915 million was
outstanding at January 1, 2010. The maximum amount of receivables available for participation in these programs was
$1,939 million at January 1, 2010. See Note O for additional information about transfers of financial assets.
Accounting Guidance Issued But Not Adopted as of December 31, 2011
In December 2011, the Financial Accounting Standards Board ("FASB") issued ASU 2011-11, "Balance Sheet (Topic 210):
Disclosures about Offsetting Assets and Liabilities," which requires entities to disclose both gross and net information about
both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions
subject to an agreement similar to a master netting agreement. The objective of the disclosure is to facilitate comparison
between those entities that prepare their financial statements on the basis of U.S. GAAP and those entities that prepare their
financial statements on the basis of International Financial Reporting Standards ("IFRS"). This ASU is effective for fiscal years,
and interim periods within those years, beginning on or after January 1, 2013. Retrospective presentation for all comparative
periods presented is required. The Company is currently evaluating the impact of adopting this guidance.
In June 2011, the FASB issued ASU 2011-05, "Comprehensive Income (Topic 220): Presentation of Comprehensive
Income," which improves the comparability, consistency and transparency of financial reporting and increases the prominence
of items reported in other comprehensive income. This ASU is effective for fiscal years, and interim periods within those years,
beginning on or after December 15, 2011, although early adoption is permitted. In December 2011, the FASB issued ASU
2011-12 "Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of
Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05,"
which defers certain aspects of ASU 2011-05 related to the presentation of reclassification adjustments. The adoption of the
revised guidance on January 1, 2012 is not expected to have a material impact on the Company's consolidated financial
statements. The new presentation will be included in the Company's Quarterly Reporting on Form 10-Q for the quarter ended
March 31, 2012.
In May 2011, the FASB issued ASU 2011-04, "Fair Value Measurement (Topic 820): Amendments to Achieve Common
Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS," which provides common requirements for
measuring fair value and disclosing information about fair value measurements in accordance with U.S. GAAP and IFRS. This
ASU is effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2011. The
adoption of this guidance on January 1, 2012 is not expected to have a material impact on the Company's consolidated financial
statements. The applicable enhanced disclosures will be included in the Company's Quarterly Reporting on Form 10-Q for the
quarter ended March 31, 2012.
NOTE C – RESTRUCTURING
2009 Restructuring
On June 30, 2009, the Company’s Board of Directors approved a restructuring plan related to the Company’s acquisition of
Rohm and Haas Company (“Rohm and Haas”) as well as actions to advance the Company’s strategy and to respond to
continued weakness in the global economy. The restructuring plan included the elimination of approximately 2,500 positions
primarily resulting from synergies to be achieved as a result of the acquisition of Rohm and Haas. In addition, the plan included
the shutdown of a number of manufacturing facilities. As a result of the restructuring activities, the Company recorded pretax