Dow Chemical 2015 Annual Report Download - page 95

85
AgroFresh Assets and Liabilities Divested on July 31, 2015
In millions
Current assets $ 40
Inventories 18
Property 5
Goodwill 101
Other intangible assets 82
Deferred charges and other assets 1
Total assets divested $ 247
Current liabilities $ 8
Other noncurrent obligations 4
Total liabilities divested $ 12
Net carrying value divested $ 235
The Company evaluated the divestiture of the AgroFresh business and determined it does not represent a strategic shift that has
a major effect on the Company’s operations and financial results and does not qualify as an individually significant component
of the Company. As a result, this divestiture was not reported as discontinued operations.
Divestiture of Investment in MEGlobal
On December 23, 2015, the Company completed the sale of its ownership interest in MEGlobal, a nonconsolidated affiliate, to
EQUATE Petrochemical Company K.S.C. ("EQUATE"). The Company received pretax proceeds of $1,472 million, net of
costs to sell and other transaction expenses. The Company eliminated 42.5 percent of the gain on the sale (equivalent to Dow's
ownership interest in EQUATE), or $555 million. The Company recorded a pretax gain of $723 million on the sale, which is
included in “Sundry income (expense) – net” in the consolidated statements of income and reflected in Performance Materials
& Chemicals. The Company recognized an after-tax gain of $589 million on the sale. See Note 9 for further information on the
Company’s equity interest in EQUATE.
Divestiture of Ownership Interest in Dow Kokam LLC
On November 22, 2013, the Company sold its 67.4 percent ownership interest in Dow Kokam LLC ("Dow Kokam") to MBP
Investors, LLC. The Company recorded a pretax gain of $26 million on the sale, included in "Sundry income (expense) - net"
in the consolidated statements of income and reflected in Corporate.
As a condition of the sale, Dow acquired the third party lenders’ interest in Dow Kokam’s $75 million note, which is included
in "Payments on long-term debt" in the consolidated statements of cash flows, and received a $75 million note from Dow
Kokam. At December 31, 2015, $15 million (zero at December 31, 2014) was classified as "Accounts and notes receivable -
other" and $46 million ($61 million at December 31, 2014) was classified as "Noncurrent receivables" in the consolidated
balance sheets. The note receivable is due to be paid in full by October 31, 2018. Payments received on the note receivable are
included in "Proceeds from sales of property, businesses and consolidated companies, net of cash divested" in the consolidated
statements of cash flows.
Divestiture of Polypropylene Licensing and Catalysts Business
On December 2, 2013, the Company sold its global Polypropylene Licensing and Catalysts business to W. R. Grace & Co. for
$490 million, net of working capital adjustments and costs to sell, with proceeds subject to customary post-closing adjustments
which were finalized in the fourth quarter of 2014. The carrying value of the net assets divested was $39 million. The Company
recorded a $451 million pretax gain on the sale, included in "Sundry income (expense) - net" in the consolidated statements of
income and reflected in Performance Plastics. The Company recorded an after-tax gain of $356 million on the sale.
Post-closing adjustments were finalized in the fourth quarter of 2014 and the Company recorded a pretax gain of $5 million
($3 million after tax) for the post-closing adjustments. The gain was included in "Sundry income (expense) - net" in the
consolidated statements of income and reflected in Performance Plastics.