Dow Chemical 2012 Annual Report Download - page 62

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such that the evaluation of the recoverability of the deferred tax assets changes, the valuation allowance could be reversed in
whole or in part in a future period.
The tax rate for 2011 was positively impacted by a high level of equity earnings as a percentage of total earnings, earnings
in foreign locations taxed at rates less than the U.S. statutory rate, the sale of a contract manufacturing business and the
reorganization of a joint venture. These factors, combined with the Brazil valuation allowance, resulted in an effective tax rate
of 22.7 percent for 2011.
In 2010, the effective tax rate was 17.2 percent and was positively impacted by a high level of equity earnings as a
percentage of total earnings, the release of a tax valuation allowance, a tax law change, and improved financial results in
jurisdictions with tax rates that are lower than the U.S. statutory rate.
On January 2, 2013, President Obama signed into law the “American Taxpayer Relief Act of 2012.” This law extends
retroactively to 2012 and prospectively through 2013 certain temporary business tax provisions (“extenders”) that are beneficial
to Dow including the research and experimentation tax credit, the controlled foreign corporation look-through rule, bonus
depreciation, and various incentives for energy efficient homes and buildings. As this tax law was enacted on January 2, 2013,
the retroactive impact for 2012 will be recognized in the first quarter of 2013 tax provision. The Company estimates the
extenders will have an immaterial impact on the tax provision.
Net income (loss) attributable to noncontrolling interests was a net loss of $82 million in 2012, net income of $42 million
in 2011 and net income of $11 million in 2010. Net income (loss) attributable to noncontrolling interests was lower in 2012
compared with 2011, reflecting the 4Q12 Restructuring and impairment charge related to the write-down of long-lived assets as
well as operating losses at Dow Kokam LLC (impacting Corporate) which more than offset improved results in the
Performance Materials affiliates. Net income (loss) attributable to noncontrolling interests was higher in 2011 compared with
2010, reflecting improved results in certain affiliates, primarily in the Electronic and Functional Materials, Agricultural
Sciences and Performance Materials segments. See Note 3 to the Consolidated Financial Statements for details on the Dow
Kokam LLC impairment charge. See Note 19 to the Consolidated Financial Statements for additional information concerning
noncontrolling interests.
Preferred stock dividends of $340 million were recognized in 2012, 2011 and 2010. These dividends related to the
Company's Cumulative Convertible Perpetual Preferred Stock, Series A ("Series A"). See Note 21 to the Consolidated Financial
Statements for additional information.
Net income available for common stockholders was $842 million ($0.70 per share) in 2012, compared with $2,402 million
($2.05 per share) in 2011 and $1,970 million ($1.72 per share) in 2010.