Dow Chemical 2014 Annual Report Download - page 79

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to proceeds received from portfolio management actions and increases in operating cash flows. As a result of these actions, the
total authorized amount of the share repurchase program is $9.5 billion. As of December 31, 2014, the Company has spent
$4.5 billion on repurchases of common stock under the share buy-back program.
For additional information related to the share repurchase program, see Part II. Item 5. Market for Registrant's Common Equity,
Related Stockholder Matters and Issuer Purchases of Equity Securities and Note 21 to the Consolidated Financial Statements.
Pension Plans
The Company has defined benefit pension plans in the United States and a number of other countries. The Company’s funding
policy is to contribute to plans when pension laws and/or economics either require or encourage funding. During 2014, 2013
and 2012, the Company contributed $815 million, $865 million and $903 million to its pension plans, including contributions
to fund benefit payments for its non-qualified supplemental plans. Dow expects to contribute approximately $750 million to its
pension plans in 2015. See Note 17 to the Consolidated Financial Statements for additional information concerning the
Company’s pension plans.
Contractual Obligations
The following table summarizes the Company’s contractual obligations, commercial commitments and expected cash
requirements for interest at December 31, 2014. Additional information related to these obligations can be found in Notes 14,
16, 17, 18 and 22 to the Consolidated Financial Statements.
Contractual Obligations at December 31, 2014 Payments Due by Year
In millions 2015 2016 2017 2018 2019
2020 and
beyond Total
Long-term debt – current and noncurrent (1) $ 394 $ 1,375 $ 778 $ 932 $ 2,578 $ 13,525 $ 19,582
Deferred income tax liabilities – noncurrent (2) — — — — — 622 622
Pension and other postretirement benefits 888 385 587 670 884 6,907 10,321
Other noncurrent obligations (3) 15 354 397 203 260 2,254 3,483
Uncertain tax positions, including interest and
penalties (4) 1 — — — — 245 246
Other contractual obligations:
Minimum lease commitments 294 275 241 199 188 1,837 3,034
Purchase commitments – take-or-pay and
throughput obligations 2,930 2,688 2,222 1,981 1,385 7,305 18,511
Purchase commitments – other (5) 105 72 60 41 38 30 346
Expected cash requirements for interest (6) 1,002 980 959 909 791 7,815 12,456
Total $ 5,629 $ 6,129 $ 5,244 $ 4,935 $ 6,124 $ 40,540 $ 68,601
(1) Excludes unamortized debt discount of $350 million. Includes $85 million of capital lease obligations.
(2) Deferred income tax liabilities may vary according to changes in tax laws, tax rates and the operating results of the Company. As a
result, it is impractical to determine whether there will be a cash impact to an individual year. All noncurrent deferred income tax
liabilities have been reflected in “2020 and beyond.”
(3) Annual payments to resolve asbestos litigation will vary based on changes in defense strategies, changes in state and national law, and
claims filing and resolution rates. As a result, it is impractical to determine the anticipated payments in any given year. Therefore, the
majority of the noncurrent asbestos-related liability of $438 million has been reflected in “2020 and beyond.”
(4) Due to uncertainties in the timing of the effective settlement of tax positions with the respective taxing authorities, the Company is
unable to determine the timing of payments related to its uncertain tax positions, including interest and penalties. Amounts beyond the
current year are therefore reflected in “2020 and beyond.”
(5) Includes outstanding purchase orders and other commitments greater than $1 million, obtained through a survey conducted within the
Company.
(6) Cash requirements for interest was calculated using current interest rates at December 31, 2014, and includes approximately
$1.76 billion of various floating rate notes.
Off-Balance Sheet Arrangements
Off-balance sheet arrangements are obligations the Company has with nonconsolidated entities related to transactions,
agreements or other contractual arrangements. The Company holds a variable interest in a joint venture accounted for under the
equity method of accounting. The Company is not the primary beneficiary of the joint venture and therefore is not required to
consolidate the entity (see Note 19 to the Consolidated Financial Statements). See Note 15 to the Consolidated Financial
Statements for information regarding the transfer of financial assets.