Dow Chemical 2013 Annual Report Download - page 102

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• An asset write-down of $17 million for a sodium borohydride manufacturing facility in Delfzijl, The Netherlands
was recorded against the Electronic and Functional Materials segment in the fourth quarter of 2012. The
manufacturing facility was shut down in the third quarter of 2013.
• Two Interconnect Technologies manufacturing facilities, one in Lucerne, Switzerland and the other in
Marlborough, Massachusetts, will be shut down, resulting in a charge in the fourth quarter of 2012 related to the
write-down of assets of $13 million against the Electronics and Functional Materials segment. The manufacturing
facility in Massachusetts was shut down in the fourth quarter of 2013; the manufacturing facility in Switzerland is
expected to be shut down in the fourth quarter of 2014.
• An asset write-down of $10 million for a polyethylene manufacturing facility in Tessenderlo, Belgium was
recorded against the Performance Plastics segment in the fourth quarter of 2012. The manufacturing facility was
shut down in the second quarter of 2013.
• Certain Dow Building and Construction manufacturing assets in Midland, Michigan were shut down in the fourth
quarter of 2012. As a result, an asset write-down of $9 million was recorded against the Coatings and
Infrastructure Solutions segment.
• Dow Formulated Systems manufacturing capacity was consolidated in the United States, resulting in the shut
down of a Solon, Ohio manufacturing facility and an asset write-down of $5 million in the fourth quarter of 2012,
impacting the Performance Materials segment. The manufacturing facility was shut down in the third quarter of
2013.
• The decision was made to shut down a number of small manufacturing, research and development, and
administrative facilities to optimize the assets of the Company. Write-downs of $42 million were recorded in the
fourth quarter of 2012, impacting Performance Materials ($20 million), Electronic and Functional Materials
($13 million), Coatings and Infrastructure Solutions ($4 million) and Corporate ($5 million). These facilities are
expected to be shut down no later than the fourth quarter of 2014.
• Certain capital projects were canceled resulting in the write-off of project spending of $8 million against the
Feedstocks and Energy ($7 million) and Coatings and Infrastructure Solutions ($1 million) segments.
• Due to a change in the Company's strategy regarding its ownership in Nippon Unicar Company Limited ("NUC"), a
50:50 joint venture, the Company determined its equity investment in NUC to be other-than-temporarily impaired and
recorded a $9 million write-down of its interest in NUC against the Performance Plastics segment in the fourth quarter
of 2012. Dow divested its ownership interest in NUC on July 1, 2013.
• The fourth quarter of 2012 restructuring charge also included the write-off of other assets associated with plant
closures totaling $10 million. These charges are reflected in the results of the operating segments impacted by the
restructuring activities.
The following table summarizes the activities related to the Company's 4Q12 Restructuring reserve, which is included in
"Accrued and other current liabilities" and "Other noncurrent obligations" in the consolidated balance sheets:
4Q12 Restructuring Activities
Costs
Associated with
Exit or
Disposal
Activities
Impairment of
Long-Lived
Assets, Other
Assets and
Equity Method
Investments
In millions
Severance
Costs Total
Restructuring charges recognized in the
fourth quarter of 2012 $ 39 $ 375 $ 576 $ 990
Charges against the reserve (9) — (576) (585)
Cash payments — (8) — (8)
Reserve balance at December 31, 2012 $ 30 $ 367 $ — $ 397
Adjustments to the reserve (6) —— (6)
Cash payments (5) (228) — (233)
Reserve balance at December 31, 2013 $ 19 $ 139 $ — $ 158