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50
franchise which include an ELITE™ Polymer production facility, a Low Density Polyethylene (LDPE) production facility, a
NORDEL™ Metallocene EPDM production facility and a High Melt Index (HMI) AFFINITY™ Polymer production facility.
These production facilities are expected to come on-line in 2017.
Construction continues on phase one of the new biopolymers manufacturing facility in Santa Vitória, Minas Gerais, Brazil. This
project, which is a consolidated joint venture with Mitsui & Co. Ltd., was announced during the fourth quarter of 2011. The
joint venture's ethanol mill is expected to process its first full harvest of sugarcane in early 2015. The joint venture's original
plans for expansion into downstream derivative products have been postponed. The joint venture is a variable interest entity
and included in Dow's consolidated financial statements. See Note 19 to the Consolidated Financial Statements for additional
information.
On October 2, 2014, the Company announced it signed a definitive agreement with ExxonMobil Chemical Company for an
ownership restructure of Univation, which will result in Univation becoming a wholly owned subsidiary of Dow. The
transaction is expected to close in the first half of 2015, pending regulatory approvals.
On November 12, 2014, the Company announced it will reconfigure and reduce its equity base in EQUATE, TKOC, TKSC and
MEGlobal through a divestment of a portion of the Company’s interests. Dow expects such transaction(s) to be completed by
mid-2016.
CORPORATE
Corporate includes certain enterprise and governance activities (including insurance operations, geographic management, risk
management such as foreign currency hedging activities, audit fees, donations, Company branding initiatives, etc.); the results
of Ventures (including business incubation platforms, non-business aligned joint ventures, and venture capital); environmental
operations; gains and losses on the sales of financial assets; severance costs; non-business aligned litigation expenses
(including asbestos-related defense costs and reserve adjustments); and, foreign exchange results.
Corporate
In millions 2014 2013 2012
Sales $ 309 $ 308 $ 246
Equity losses $ (23) $ (39) $ (102)
EBITDA $ (580) $ 1,361 $ (1,595)
Certain items impacting EBITDA $ (127) $ 1,788 $ (1,032)
2014 Versus 2013
Sales for Corporate, which primarily relate to insurance operations, were $309 million in 2014, essentially flat from
$308 million in 2013.
EBITDA for 2014 was a loss of $580 million, compared with a gain of $1,361 million in 2013. EBITDA was negatively
impacted by higher severance costs, losses related to Ventures and higher foreign exchange losses which more than offset lower
performance-based compensation costs. EBITDA for 2014 was also negatively impacted by $49 million of nonrecurring
transaction costs associated with the planned separation of a significant portion of the Company's chlorine value chain and a
$78 million charge related to an increase in the asbestos-related liability. See Note 14 to Consolidated Financial Statements for
additional information on asbestos-related matters.
EBITDA for 2013 was favorably impacted by a $2.161 billion gain from the K-Dow arbitration and a gain of $26 million on
the sale of the Company's ownership interest in Dow Kokam LLC. EBITDA for 2013 was negatively impacted by a
$326 million loss related to the early extinguishment of debt; $44 million of implementation costs related to the Company's
Restructuring programs; and $29 million of asset impairments and related costs, including a $10 million loss related to asset
impairment charges at a formulated electrolytes manufacturing joint venture. See Notes 5, 11, 14 and 16 to the Consolidated
Financial Statements for additional information on these matters.
2013 Versus 2012
Sales for Corporate were $308 million in 2013, up from $246 million in 2012.
EBITDA for 2013 was a gain of $1,361 million, compared with a loss of $1,595 million in 2012. Compared with the same
period last year, EBITDA was favorably impacted by a decrease in performance-based compensation costs, lower litigation