Dow Chemical 2015 Annual Report Download - page 50

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The following table summarizes the impact of certain items recorded in 2015, 2014 and 2013:
Certain Items Impacting Results Pretax
Impact (1)
Impact on
Net Income (2)
Impact on
EPS (3) (4)
In millions, except per share amounts 2015 2014 2013 2015 2014 2013 2015 2014 2013
Adjusted to exclude certain items (non-
GAAP measures) $ 4,054 $ 3,709 $ 2,981 $ 3.47 $ 3.11 $ 2.48
Certain items:
Cost of sales:
Asset impairments and related costs $ (91) $ (23) $ (181) (70) (14) (124) (0.06) (0.01) (0.10)
Warranty accrual adjustment of exited
business — (100) — — (63) — — (0.05) —
Univation step acquisition (12) — — (8) — — (0.01) — —
Restructuring plan implementation costs — — (40) — — (29) — — (0.03)
Portfolio and productivity actions (24) — — (16) — — (0.01) — —
R&D:
Restructuring plan implementation costs — — (2) — — (1) — — —
SG&A:
Restructuring plan implementation costs — — (2) — — (2) — — —
Portfolio and productivity actions (51) — — (38) — — (0.03) — —
Amortization of intangibles:
Asset impairments and related costs — — (3) — — (2) — — —
Goodwill and other intangible asset
impairment losses — (50) — — (33) — — (0.03) —
Restructuring (charges) credits (415) — 22 (274) — 21 (0.24) — 0.02
Asbestos-related charge — (78) — — (49) — — (0.04) —
Equity in earnings of nonconsolidated
affiliates:
Joint venture actions (36) (93) — (26) (87) — (0.02) (0.08) —
Asset impairments at a formulated
electrolytes joint venture — — (10) — — (6) — — (0.01)
Sundry income (expense) - net:
Gain on split-off of chlorine value chain 2,233 — — 2,215 — — 1.96 — —
Gain on sale of MEGlobal 723 — — 589 — — 0.52 — —
Gain on 2015 business divestitures 1,320 — — 823 — — 0.71 — —
Gain on Univation step acquisition 361 — — 359 — — 0.31 — —
Gain from K-Dow settlement — — 2,161 — — 1,647 — — 1.37
Gain on sale of Polypropylene Licensing
and Catalysts business — — 451 — — 356 — — 0.29
Gain on sale of a 7.5 percent interest in
Freeport LNG Development, L.P. — — 87 — — 69 — — 0.06
Gain on sale of ownership interest in Dow
Kokam — — 26 — — 18 — — 0.01
Asset impairments and related costs (53) — — (53) — — (0.05) — —
Impact of Argentine peso devaluation (98) — — (106) — — (0.09) — —
Loss on early extinguishment of debt (8) — (326) (5) — (205) — — (0.17)
Portfolio and productivity actions (119) (49) — (99) (31) — (0.09) (0.03) —
Provision for income taxes:
Uncertain tax position adjustments — — — — — (276) — — (0.23)
Total certain items $ 3,730 $ (393) $ 2,183 $ 3,291 $ (277) $ 1,466 $ 2.90 $ (0.24) $ 1.21
Dilutive effect of assumed preferred stock
conversion into shares of common stock $ (0.22) $ — $ (0.01)
Reported U.S. GAAP Amounts (5) (6) $ 7,345 $ 3,432 $ 4,447 $ 6.15 $ 2.87 $ 3.68
(1) Impact on "Income Before Income Taxes."
(2) Impact on "Net Income Available for The Dow Chemical Company Common Stockholders."
(3) Impact on "Earnings per common share - diluted."
(4) For the years ended December 31, 2015 and 2013, conversion of the Company's Cumulative Convertible Perpetual Preferred Stock,
Series A ("Preferred Stock") into shares of the Company's common stock was excluded from the calculation of "Diluted earnings per
share adjusted to exclude certain items" as well as the earnings per share impact of certain items because the effect of including them
would have been antidilutive.
(5) For the years ended December 31, 2015 and 2013, an assumed conversion of the Company's Preferred Stock into shares of the
Company's common stock was included in the calculation of diluted earnings per share (reported U.S. GAAP amount).
(6) The Company used "Net Income Attributable to The Dow Chemical Company" when calculating diluted earnings per share (reported
U.S. GAAP amount) for the years ended December 31, 2015 and 2013, as it excludes preferred dividends of $340 million.