Dow Chemical 2012 Annual Report Download - page 160

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NOTE 23 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The following table provides an analysis of the changes in accumulated other comprehensive income (loss) for the years ended
December 31, 2012, 2011 and 2010:
Accumulated Other Comprehensive Income (Loss)
In millions 2012 2011 2010
Unrealized Gains on Investments at beginning of year $ 78 $ 111 $ 79
Net change in unrealized gains (losses) 69 (33) 32
Balance at end of period $ 147 $ 78 $ 111
Cumulative Translation Adjustments at beginning of year 72 367 624
Translation adjustments 256 (295) (257)
Balance at end of period $ 328 $ 72 $ 367
Pension and Other Postretirement Benefit Plans at beginning of year (6,134) (4,871) (4,587)
Net prior service credit 15 20 23
Net loss (1,876) (1,283) (307)
Balance at end of period $ (7,995) $ (6,134) $ (4,871)
Accumulated Derivative Loss at beginning of year (12) (6) (8)
Net hedging results (7) (1) (13)
Reclassification to earnings 23 (5) 15
Balance at end of period $ 4 $ (12) $ (6)
Total accumulated other comprehensive loss $ (7,516) $ (5,996) $ (4,399)
NOTE 24 – OPERATING SEGMENTS AND GEOGRAPHIC AREAS
Dow is a diversified, worldwide manufacturer and supplier of products used primarily as raw materials in the manufacture of
customer products and services. The Company serves the following industries: appliance; automotive; agricultural; building
and construction; chemical processing; electronics; furniture; housewares; oil and gas; packaging; paints, coatings and
adhesives; personal care; pharmaceutical; processed foods; pulp and paper; textile and carpet; utilities; and water treatment.
Dow conducts its worldwide operations through global businesses, which are reported in six operating segments.
Corporate contains the reconciliation between the totals for the reportable segments and the Company’s totals and includes
research and other expenses related to new business development activities, and other corporate items not allocated to the
reportable operating segments.
The Company uses EBITDA (which Dow defines as earnings (i.e., "Net Income") before interest, income taxes,
depreciation and amortization) as its measure of profit/loss for segment reporting purposes. EBITDA by operating segment
includes all operating items relating to the businesses, except depreciation and amortization; items that principally apply to the
Company as a whole are assigned to Corporate. See table toward the end of this footnote for depreciation and amortization by
segment, as well as a reconciliation of EBITDA to “Income Before Income Taxes.”
Corporate Profile
Dow combines the power of science and technology to passionately innovate what is essential to human progress. The
Company connects chemistry and innovation with the principles of sustainability to help address many of the world's most
challenging problems such as the need for clean water, renewable energy generation and conservation, and increasing
agricultural productivity. Dow's diversified industry-leading portfolio of specialty chemicals, advanced materials, agrosciences
and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately
160 countries and in high growth sectors such as electronics, water, energy, coatings and agriculture. In 2012, Dow had annual
sales of $56.8 billion and employed approximately 54,000 people worldwide. The Company's more than 5,000 products are
manufactured at 188 sites in 36 countries across the globe. The Company conducts its worldwide operations through global
businesses, which are reported in six operating segments: Electronic and Functional Materials, Coatings and Infrastructure
Solutions, Agricultural Sciences, Performance Materials, Performance Plastics and Feedstocks and Energy.
Electronic and Functional Materials
The Electronic and Functional Materials segment consists of two businesses – Dow Electronic Materials and Functional
Materials – and includes a portion of the Company’s share of the results of Dow Corning Corporation, a joint venture of
the Company. Dow Electronic Materials is a leading global supplier of materials for chemical mechanical planarization;