Dow Chemical 2013 Annual Report Download - page 100

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On January 1, 2012, the Company adopted ASU 2011-05, "Comprehensive Income (Topic 220): Presentation of
Comprehensive Income," as amended by 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." This standard improves the comparability, consistency and transparency of
financial reporting and increases the prominence of items reported in other comprehensive income. See the Consolidated
Statements of Comprehensive Income and Note 23 for additional information.
On January 1, 2012, the Company adopted 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. See Note 11 for additional information about fair value measurements.
On September 30, 2011, the Company adopted ASU 2011-08, “Intangibles-Goodwill and Other (Topic 350): Testing Goodwill
for Impairment.” This ASU simplifies how entities test goodwill for impairment and permits an entity to first assess qualitative
factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying 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 2013, 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, 2013
In February 2013, the Financial Accounting Standards Board ("FASB") issued ASU 2013-04, "Liabilities (Topic 405):
Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at
the Reporting Date," which defines how entities measure obligations from joint and several liability arrangements for which the
total amount of the obligation is fixed at the reporting date and for which no guidance exists, except for obligations addressed
within existing guidance in U.S. GAAP. The guidance also requires entities to disclose the nature and amount of the obligation
as well as other information about those obligations. This ASU is effective for fiscal years, and interim periods within those
years, beginning after December 15, 2013. Retrospective presentation for all comparative periods presented is required and
early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance.
In March 2013, the FASB issued ASU 2013-05, "Foreign Currency Matters (Topic 830): Parent's Accounting for the
Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or
of an Investment in a Foreign Entity," which defines the treatment of the release of cumulative translation adjustments upon
derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. This ASU
is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is
permitted and prior periods should not be adjusted. The Company does not expect the adoption of this guidance to have a
material impact on the consolidated financial statements.
In July 2013, the FASB issued ASU 2013-11, "Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a
Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists," which defines the presentation
requirements of an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements. This ASU
is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is
permitted and retrospective application is permitted, but not required. 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 by March 31, 2015.