Dow Chemical 2011 Annual Report Download - page 180

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restructuring charges of $677 million in the second quarter of 2009, consisting of asset write-downs and write-offs of
$454 million, costs associated with exit or disposal activities of $68 million and severance costs of $155 million. The impact of
the charges is shown as “Restructuring charges” in the consolidated statements of income and was reflected in the Company’s
segment results as shown in the following table, which also reflects adjustments made in 2009 to the 2009 plan, the 2008 plan
and the 2007 plan.
2009 Restructuring Charges by Operating
Segment
In millions
Electronic and Functional Materials
Coatings and Infrastructure Solutions
Performance Materials
Performance Plastics
Feedstocks and Energy
Corporate
Total 2009 restructuring charges
Adjustments to restructuring charges:
2009 Plan - Corporate
2008 Plan - Corporate
2007 Plan - Agricultural Sciences
2007 Plan - Corporate
Net 2009 restructuring charges
Impairment of
Long-
Lived Assets
and Other Assets
$ 48
258
2
1
140
5
$ 454
—
—
—
—
$ 454
Costs associated
with Exit or
Disposal
Activities
$ —
4
—
—
—
64
$ 68
13
—
(15)
—
$ 66
Severance
Costs
$ —
—
—
—
—
155
$ 155
—
19
—
(5)
$ 169
Total
$ 48
262
2
1
140
224
$ 677
13
19
(15)
(5)
$ 689
Details regarding the components of the 2009 restructuring charges and adjustments to restructuring charges are discussed
below:
Impairment of Long-Lived Assets and Other Assets
The restructuring charges related to the write-down or write-off of assets totaled $454 million. Write-downs were related to
Dow’s facilities located in Hahnville and Plaquemine, Louisiana; the United States Federal Trade Commission (“FTC”)
required divestiture of certain acrylic monomer and specialty latex assets in North America; and other small manufacturing
facilities where the acquisition of Rohm and Haas resulted in overlapping manufacturing capabilities. Details regarding these
write-downs or write-offs are as follows:
• Due to continued weakness in the global economy, the decision was made to shut down a number of hydrocarbon and
basic chemicals facilities, with an impact of $126 million, including the following:
Ethylene manufacturing facility in Hahnville, Louisiana. A write-off of the net book value of the related
buildings, machinery and equipment against the Feedstocks and Energy segment was recorded. The facility
was shut down in the second quarter of 2009.
Ethylene oxide/ethylene glycol manufacturing facility in Hahnville, Louisiana. A write-off of the net book
value of the related buildings, machinery and equipment against the Feedstocks and Energy segment was
recorded. The facility was shut down in the second quarter of 2009.
Ethylene dichloride and vinyl chloride monomer manufacturing facility in Plaquemine, Louisiana. A write-
down of the net book value of the related buildings, machinery and equipment against the Feedstocks and
Energy segment was recorded. The facility was shut down in the third quarter of 2011.
• With the completion of the Company’s acquisition of Rohm and Haas, the following charges were recognized:
Due to an expected loss from the FTC required divestitures of certain acrylic monomer and specialty latex
assets within eight months of the closing of the acquisition of Rohm and Haas, the Company recognized an
impairment charge of $205 million against the Coatings and Infrastructure Solutions segment in the second
quarter of 2009. The divestiture of the assets was completed in January 2010 (see Note E).