Dow Chemical 2014 Annual Report Download - page 102

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• In response to global economic conditions and competitive dynamics, the decision was made to shut down and/or
consolidate a number of manufacturing facilities, with an impact of $246 million, summarized as follows:
• A Dow Automotive Systems diesel particulate filters manufacturing facility in Midland, Michigan, was shut
down, resulting in the write-down of assets and capital projects associated with this facility of $114 million,
impacting the Consumer Solutions segment. The facility was shut down in the fourth quarter of 2012.
• Certain Industrial Solutions manufacturing facilities in Texas City, Texas, were consolidated and/or shut down,
resulting in an asset write-down of $36 million against the Performance Materials & Chemicals segment. The
assets were shut down in the fourth quarter of 2012.
• An asset write-down of $17 million for a sodium borohydride manufacturing facility in Delfzijl, The Netherlands,
was recorded against the Performance Materials & Chemicals 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, were shut down or sold, resulting in a charge in the fourth quarter of 2012 related to
the write-down of assets of $13 million against the Consumer Solutions segment. The manufacturing facility in
Massachusetts was shut down in the fourth quarter of 2013; the manufacturing facility in Switzerland was sold in
the third quarter of 2014.
• An asset write-down of $9 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 Energy & Water Solutions 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 Infrastructure Solutions
segment.
• Polyurethanes 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 $6 million in the fourth quarter of 2012, impacting
the Performance Materials & Chemicals 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 & Chemicals ($15 million), Infrastructure Solutions
($12 million), Consumer Solutions ($9 million) and Corporate ($6 million). Most of these facilities were shut
down by the end of the fourth quarter of 2014.
• Certain capital projects were canceled resulting in the write-off of project spending of $8 million against the
Performance Plastics ($7 million) 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.