Dow Chemical 2015 Annual Report Download - page 149

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NOTE 25 – 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 "Accrued and other current liabilities," "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 20 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, 2015, 2014 and 2013:
Non-redeemable Noncontrolling Interests
In millions 2015 2014 2013
Balance at January 1 $ 931 $ 1,026 $ 990
Net income attributable to noncontrolling interests 98 67 29
Distributions to noncontrolling interests (1) (76) (64) (55)
Capital contributions (2) 38 36 58
Purchases of noncontrolling interests (3) (42) (56) —
Transfers of redeemable noncontrolling interest (4) (108) (46) (9)
Cumulative translation adjustments (34) (29) (43)
Deconsolidation of noncontrolling interests — — 52
Other 2 (3) 4
Balance at December 31 $ 809 $ 931 $ 1,026
(1) Distributions to noncontrolling interests is net of $36 million in 2015 ($27 million in 2014) in dividends paid to a
joint venture which were reclassified to "Equity in earnings of nonconsolidated affiliates" in the consolidated
statements of income.
(2) Includes non-cash capital contributions of $21 million in 2015.
(3) The 2015 value excludes a $133 million purchase of a Redeemable Noncontrolling Interest. See Notes 6 and 20
for additional information.
(4) See Notes 6 and 20 for additional information.
NOTE 26 – OPERATING SEGMENTS AND GEOGRAPHIC AREAS
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.
Dow conducts its worldwide operations through global businesses, which are reported in five operating segments. Corporate
contains the reconciliation between the totals for the reportable segments and the Company’s totals and includes research and
other expenses related to new business development activities, and other corporate items not allocated to the reportable
operating segments.
The Company uses EBITDA (which Dow defines as earnings (i.e., "Net Income") before interest, income taxes, depreciation
and amortization) as its measure of profit/loss for segment reporting purposes. EBITDA by operating segment includes all
operating items relating to the businesses; items that principally apply to the Company as a whole are assigned to Corporate.
See table toward the end of this footnote for depreciation and amortization by segment, as well as a reconciliation of EBITDA
to “Income Before Income Taxes.”
Corporate Profile
Dow combines the power of science and technology to passionately innovate what is essential to human progress. The
Company is driving innovations that extract value from materials, polymers, chemicals and biological sciences to help address
many of the world's most challenging problems such as the need for clean water, clean energy generation and conservation, and
increasing agricultural productivity. Dow's integrated, market-driven, industry-leading portfolio of specialty chemical,
advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to
customers in approximately 180 countries and in high-growth sectors such as packaging, electronics, water, coatings and
agriculture. In 2015, Dow had annual sales of nearly $49 billion and employed approximately 49,500 people worldwide. The
Company's more than 6,000 product families are manufactured at 179 sites in 35 countries across the globe. The Company