Dow Chemical 2015 Annual Report Download - page 25

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15
INDUSTRY SEGMENTS AND GEOGRAPHIC AREA RESULTS
See Note 26 to the Consolidated Financial Statements for information regarding sales, EBITDA and total assets by segment as
well as sales and total assets by geographic area.
SIGNIFICANT CUSTOMERS AND PRODUCTS
All products and services are marketed primarily through the Company’s sales force, although in some instances more
emphasis is placed on sales through distributors. No significant portion of any operating segment's sales is dependent upon a
single customer. No single product accounted for more than five percent of the Company’s consolidated net sales in 2015.
RAW MATERIALS
The Company operates in an integrated manufacturing environment. Basic raw materials are processed through many stages to
produce a number of products that are sold as finished goods at various points in those processes. The two major raw material
streams that feed the production of the Company’s finished goods are hydrocarbon-based and chlorine-based raw materials.
The Company also produces a portion of its electricity needs in Louisiana and Texas; Alberta, Canada; and Germany.
The Company purchases hydrocarbon raw materials including ethane, propane, butane, naphtha and condensate as feedstocks.
These raw materials are used in the production of both saleable products and energy. The Company also purchases certain
monomers, primarily ethylene and propylene, to supplement internal production. The Company purchases natural gas,
primarily to generate electricity, and purchases electric power to supplement internal generation. Expenditures for hydrocarbon
feedstocks and energy accounted for 27 percent of the Company’s production costs and operating expenses for the year ended
December 31, 2015. The Company purchases these raw materials on both short- and long-term contracts.
The Company had adequate supplies of raw materials during 2015, and expects to continue to have adequate supplies of raw
materials in 2016. Significant raw materials, by operating segment, are listed below:
Significant Raw Materials Performance
Materials &
Chemicals
Raw Material Agricultural
Sciences
Consumer
Solutions
Infrastructure
Solutions
Performance
Plastics
Acetone x
Ammonia x x x
Aniline x
Benzene x x
Butadiene x x
Butanol (1) x
Butene x x
Carbon Black x x
Carbon Monoxide x x
Chlorine x x x x
Condensate x
Electric Power x x
Ethane x
Ethanol x x x x x
Ethylene (1) xxx
Formaldehyde x x x
Hexene x
Hydrogen Peroxide (2) x
Liquified Petroleum Gases x
Methanol x x x x
Naphtha x
Natural Gas x
Octene x
Polystyrene x x
Propane x x
Propylene (1) xxxx
Pygas x
Styrene x x
Wood Pulp x
(1) Produced by the Company and procured from external sources for internal consumption.
(2) Primarily produced and procured by a consolidated variable interest entity.