Dow Chemical 2013 Annual Report Download - page 155

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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, 2013, 2012 and 2011:
Accumulated Other Comprehensive Income (Loss)
In millions 2013 2012 2011
Unrealized Gains on Investments at beginning of year $ 147 $ 78 $ 111
Net change in unrealized gains (losses) (net of tax of $25, $29, $(8)) 55 84 (12)
Reclassification to earnings - Net sales (net of tax of $(20), $(8), $(15)) (1) (42) (13) (25)
Reclassification to earnings - Sundry income (expense) - net (net of tax of $-,
$(1), $2) (1) —(2) 4
Balance at end of period $ 160 $ 147 $ 78
Cumulative Translation Adjustments at beginning of year 328 72 367
Translation adjustments (net of tax of $(6), $97, $(26)) 169 256 (262)
Reclassification to earnings - Sundry income (expense) - net (2) (21) — (33)
Balance at end of period $ 476 $ 328 $ 72
Pension and Other Postretirement Benefit Plans at beginning of year (7,995) (6,134) (4,871)
Prior service credit arising during period (net of tax of $1, $-, $1) (3) 5 — 1
Net gain (loss) arising during period (net of tax of $876, $(1,037), $(657)) (3) 1,984 (2,222) (1,524)
Amortization of prior service cost included in net periodic pension costs (net of
tax of $6, $7, $8) (3) 15 15 19
Amortization of net loss included in net periodic pension costs (net of tax of
$266, $174, $130) (3) 531 346 241
Balance at end of period $ (5,460) $ (7,995) $ (6,134)
Accumulated Derivative Gain (Loss) at beginning of year 4 (12) (6)
Net hedging results 10 (7) (1)
Reclassification to earnings - Cost of sales (net of tax of $(8), $13, $(4)) (1) (4) (17) 23 (5)
Balance at end of period $ (3) $ 4 $ (12)
Total accumulated other comprehensive loss $ (4,827) $ (7,516) $ (5,996)
(1) Tax amounts are included in "Provision for income taxes" in the consolidated statements of income.
(2) Reclassification resulted from transactions that qualified as a complete liquidation of an investment in a foreign entity.
(3) See Note 17 for additional information.
(4) Accumulated Derivative Gain (Loss) for 2012 and 2011 was presented in accordance with newly implemented ASU 2013-02.
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; 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 is driving innovations that extract value from the intersection of chemical, physical and biological sciences to help
address many of the world's most challenging problems such as the need for clean water, clean energy generation and