Dow Chemical 2014 Annual Report Download - page 154

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130
NOTE 24 – NONCONTROLLING INTERESTS
Ownership interests in the Company's subsidiaries held by parties other than the Company are presented separately from the
Company's equity in the consolidated balance sheets as "Redeemable Noncontrolling Interest" and "Non-redeemable
noncontrolling interests." The amount of consolidated net income attributable to the Company and the noncontrolling interests
are both presented on the face of the consolidated statements of income. See Note 19 for additional information related to the
redeemable noncontrolling interest.
The following table summarizes the activity for equity attributable to non-redeemable noncontrolling interests for the years
ended December 31, 2014, 2013 and 2012:
Non-redeemable Noncontrolling Interests
In millions 2014 2013 2012
Balance at January 1 $ 1,026 $ 990 $ 1,010
Net income (loss) attributable to noncontrolling interests 67 29 (82)
Distributions to noncontrolling interests (1) (64) (55) (73)
Capital contributions (noncash - 2014: $-; 2013: $-; 2012: $97) 36 58 97
Consolidation of variable interest entities (2) — — 37
Purchases of noncontrolling interests (2) (56) — —
Transfers of redeemable noncontrolling interest (46) (9) —
Cumulative translation adjustments (29) (43) —
Deconsolidation of noncontrolling interests — 52 —
Other (3) 4 1
Balance at December 31 $ 931 $ 1,026 $ 990
(1) The 2014 impact is net of $27 million in dividends paid to a joint venture which were reclassified to "Equity in
earnings of nonconsolidated affiliates."
(2) See Note 19 for additional information on variable interest entities.
NOTE 25 – OPERATING SEGMENTS AND GEOGRAPHIC AREAS
Beginning in the fourth quarter of 2014, the Company changed its reportable segments as a result of changes in the Company's
organization, including executive leadership appointments. The new operating segments reflect the Company’s strategy to be
low-cost and fully integrated in key value chains while adding value through technology and end-market orientation. The new
operating segments also reflect either integrated value chain alignment, such as acrylic, chlorine, ethylene and propylene within
a segment, or the segment’s innovation-driven market focus.
Following are the new segments:
• Agricultural Sciences
• Consumer Solutions
• Infrastructure Solutions
• Performance Materials & Chemicals
• Performance Plastics
The Company also changed the assignment of certain expenses previously aligned with the Corporate segment to better reflect
operating segment results and profitability. All leveraged functional costs (i.e., information systems, finance, human resources,
legal, supply chain, etc.) are now fully allocated to the segments. In addition, long-term performance-based compensation
expense, including the Employee Stock Purchase Plan, stock options, deferred stock and performance deferred stock, are now
allocated to the segments based primarily on employee alignment.
The reporting changes are retrospectively reflected in segment results for all periods presented.
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.