Dow Chemical 2012 Annual Report Download - page 104

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amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The Company has
incorporated this guidance into its goodwill impairment testing for 2012 and 2011. See Note 9 for additional information.
On January 1, 2011, the Company adopted ASU 2009-13, “Revenue Recognition (Topic 605): Multiple-Deliverable
Revenue Arrangements – a consensus of the FASB Emerging Issues Task Force.” This ASU amended the criteria for when to
evaluate individual delivered items in a multiple deliverable arrangement and how to allocate consideration received. The
adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.
Accounting Guidance Issued But Not Adopted as of December 31, 2012
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 IFRS. In January 2013, the FASB issued ASU 2013-01, "Balance Sheet (Topic 210):
Clarifying the Scope of Disclosures about Offsetting Asset and Liabilities," which clarifies the scope of the offsetting
disclosures of ASU 2011-11. Both ASUs are 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 February 2013, the FASB issued ASU 2013-02, "Comprehensive Income (Topic 220): Reporting of Amounts
Reclassified Out of Accumulated Other Comprehensive Income," which requires entities to provide information about the
amounts reclassified out of accumulated other comprehensive income by component. In addition, entities are required to
present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of
accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is
required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that
are not required under U.S. GAAP to be reclassified in their entirety to net income, entities are required to cross-reference to
other disclosures required under U.S. GAAP that provide additional detail on these amounts. This ASU is effective
prospectively for reporting periods beginning after December 15, 2012. The Company is currently evaluating the impact of
adopting this guidance.
NOTE 3 – RESTRUCTURING
4Q12 Restructuring
On October 23, 2012, the Company's Board of Directors approved a restructuring plan ("4Q12 Restructuring") to advance the
next stage of the Company's transformation and to address macroeconomic uncertainties. The restructuring plan accelerates the
Company's structural cost reduction program and will affect approximately 2,850 positions and result in the shutdown of
approximately 20 manufacturing facilities. These actions are expected to be completed during the next two years.