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96
businesses, part of the Infrastructure Solutions segment ($93 million); Chlor-Alkali and Vinyl, Epoxy and Polyurethanes
businesses, part of the Performance Materials & Chemicals segment ($70 million); and Corporate ($15 million).
The assets, classified as Level 3 measurements, were valued at $127 million using unobservable inputs, including assumptions
a market participant would use to measure the fair value of the group of assets, which included projected cash flows. The
carrying value by segment was as follows: Infrastructure Solutions assets were valued at $100 million; Performance Materials
& Chemicals assets were valued at $9 million; and Corporate assets were valued at $18 million.
2012 Fair Value Measurements on a Nonrecurring Basis
As part of the 1Q12 Restructuring plan that was approved on March 27, 2012, the Company shut down a number of
manufacturing facilities during 2012. The manufacturing assets and facilities associated with this plan were written down to
zero in the first quarter of 2012 and a $94 million impairment charge was included in "Restructuring charges (credits)" in the
consolidated statements of income. During the fourth quarter of 2012, the Company reduced the 1Q12 Restructuring reserve by
$4 million. See Note 3 for additional information.
In the second half of 2012, a $27 million asset impairment charge was recognized in the Infrastructure Solutions segment. The
assets, classified as Level 3 measurements, were valued at $12 million using unobservable inputs, including assumptions a
market participant would use to measure the fair value of the group of assets, which included projected cash flows.
As part of the 4Q12 Restructuring plan that was approved on October 23, 2012, the Company shut down a number of
manufacturing facilities. The manufacturing assets and facilities associated with this plan were written down to zero in the
fourth quarter of 2012. In addition, an equity method investment was impaired. The equity method investment, classified as a
Level 3 measurement, was valued at $33 million using unobservable inputs, including assumptions a market participant would
use to measure the fair value of the investment, which included projected cash flows. These impairment charges, totaling
$576 million, were included in "Restructuring charges (credits)" in the consolidated statements of income. See Note 3 for
additional information.
In the fourth quarter of 2012, the Company performed its annual goodwill impairment testing utilizing a discounted cash flow
methodology as its valuation technique. As a result of this testing, the Company recognized a $220 million goodwill
impairment charge related to its Dow Formulated Systems reporting unit (part of the Performance Materials & Chemicals
segment), which was included in "Goodwill and other intangible asset impairment losses" in the consolidated statements of
income. See Note 9 for additional information.