Dow Chemical 2015 Annual Report Download - page 61

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CORPORATE
Corporate includes certain enterprise and governance activities (including insurance operations, geographic management, risk
management such as foreign currency hedging activities, audit fees, donations, Company branding initiatives, etc.); the results
of Ventures (including business incubation platforms and non-business aligned joint ventures); environmental operations; gains
and losses on the sales of financial assets; severance costs; non-business aligned litigation expenses (including asbestos-related
defense costs and reserve adjustments); and foreign exchange results.
Corporate
In millions 2015 2014 2013
Sales $ 294 $ 309 $ 308
Equity losses $ (50) $ (23) $ (39)
EBITDA $ (1,053) $ (580) $ 1,361
Certain items impacting EBITDA $ (689) $ (127) $ 1,788
EBITDA excluding certain items $ (364) $ (453) $ (427)
2015 Versus 2014
Sales for Corporate, which primarily relate to insurance operations, were $294 million in 2015, down slightly from
$309 million in 2014.
EBITDA for 2015 was a loss of $1,053 million, compared with a loss of $580 million in 2014. EBITDA in 2015 was negatively
impacted by $294 million of restructuring charges, $194 million of costs associated with portfolio and productivity actions, a
$98 million loss related to the impact of the Argentine peso devaluation, a $68 million loss on the early extinguishment of debt
related to the split-off of the Company's chlorine value chain, a loss recognized by Sadara related to the write-off of design
engineering work for an Epoxy plant of which Dow's share was $27 million, and an $8 million loss related to the early
extinguishment of debt. EBITDA for 2014 was negatively impacted by $49 million of costs associated with portfolio and
productivity actions and a $78 million charge related to an increase in the asbestos-related liability. Excluding these certain
items, EBITDA improved in 2015 as gains related to Ventures and asset sales more than offset an increase in performance-
based compensation costs. See Notes 3, 6, 13, 15 and 17 to the Consolidated Financial Statements for additional information on
these matters.
2014 Versus 2013
Sales for Corporate were $309 million in 2014, essentially flat from $308 million in 2013.
EBITDA for 2014 was a loss of $580 million, compared with a gain of $1,361 million in 2013. Compared with 2013, EBITDA
was negatively impacted by higher severance costs, losses related to Ventures and higher foreign exchange losses which more
than offset lower performance-based compensation costs. EBITDA for 2014 was negatively impacted by $127 million of
certain items, as previously discussed. EBITDA for 2013 was favorably impacted by a $2.161 billion gain from the K-Dow
arbitration and a gain of $26 million on the sale of the Company's ownership interest in Dow Kokam LLC. EBITDA for 2013
was negatively impacted by a $326 million loss related to the early extinguishment of debt; $44 million of implementation
costs related to the Company's Restructuring programs; and $29 million of asset impairments and related costs, including a
$10 million loss related to asset impairment charges at a formulated electrolytes manufacturing joint venture. See Notes 5, 12,
15 and 17 to the Consolidated Financial Statements for additional information on these matters.