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103
sales" ($91 million) and "Sundry income (expense) - net" ($53 million) in the consolidated statements of income and reflected
in Infrastructure Solutions ($87 million) and Performance Plastics ($57 million).
2014 Fair Value Measurements on a Nonrecurring Basis
As a result of weakening demand for certain optical and ceramic technologies, the Company recognized a $73 million asset
impairment charge in the fourth quarter of 2014 in the Dow Electronic Materials business. The charge was included in "Cost of
sales" ($23 million) and "Goodwill and other intangible asset impairment losses" ($50 million) in the consolidated statements of
income and reflected in Consumer Solutions. The assets, classified as Level 3 measurements, were written down to $4 million
based on a valuation 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.
2013 Fair Value Measurements on a Nonrecurring Basis
As a result of Dow's announcement of its new market-driven growth strategy, the Company recognized a $178 million asset
impairment charge in the fourth quarter of 2013, including charges for manufacturing plant shutdowns. The charge was
included in "Cost of sales" ($175 million) and "Amortization of intangibles" ($3 million) in the consolidated statements of
income and impacted the following businesses/operating segments: Energy & Water Solutions and Performance Monomers
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.
NOTE 13 – SUPPLEMENTARY INFORMATION
Sundry Income (Expense) – Net
In millions 2015 2014 2013
Gain on sales of other assets and investments (1) $ 237 $ 40 $ 98
Foreign exchange loss (191) (61) (31)
Gain on split-off of chlorine value chain (2) 2,233 — —
Gain on sale of MEGlobal (3) 723 — —
Gain on divestiture of ANGUS Chemical Company (3) 682 — —
Gain on divestiture of AgroFresh business (3) (9) 618 — —
Gain on Univation step acquisition (4) 361 — —
Costs associated with portfolio and productivity actions (5) (119) (49) —
Gain on sale of Agricultural Sciences subsidiary (6) 44 — —
Gain on divestiture of Sodium Borohydride business (3) 20 — —
Loss on early extinguishment of debt (7) (8) — (329)
Gain on termination of ethylene off-take agreement — 53 —
K-Dow settlement (8) — — 2,161
Gain on sale of Polypropylene Licensing and Catalysts business (3) — 5 451
Gain on sale of a 7.5 percent ownership interest in Freeport LNG Development, L.P. — — 87
Gain on sale of ownership interest in Dow Kokam LLC (3) — — 26
Reclassification of cumulative translation adjustments (4) (12) 21
Other - net (4) (3) 70
Total sundry income (expense) – net $ 4,592 $ (27) $ 2,554
(1) The 2013 gain on sales of other assets and investments also included a $21 million gain reported as "Reclassification of cumulative
translation adjustments."
(2) See Note 6 for additional information.
(3) See Note 5 for additional information.
(4) See Note 4 for additional information.
(5) Nonrecurring transaction costs associated with the separation of the chlorine value chain, the planned all-stock merger of equals with
DuPont, the planned ownership restructure of Dow Corning, implementation of the restructuring program and productivity actions.
(6) See Note 20 for additional information.
(7) Excludes a $68 million loss on the early redemption on debt related to the split-off of the chlorine value chain. See Notes 6 and 17 for
additional information.
(8) See Note 15 for additional information.
(9) Includes an $8 million loss on mark-to-market adjustments related to warrants.