Delaware (State or other jurisdiction of incorporation) | 1-3433 (Commission file number) | 38-1285128 (IRS Employer Identification No.) |
2030 DOW CENTER, MIDLAND, MICHIGAN 48674 | ||
(Address of principal executive offices) (Zip Code) | ||
Registrant's telephone number, including area code: 989-636-1000 | ||
Not applicable (Former name or former address, if changed since last report) | ||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | Exhibits. |
/s/ RONALD C. EDMONDS |
Ronald C. Edmonds |
Vice President and Controller |
EXHIBIT INDEX | |
Exhibit No. | Description |
99.1 | Press release issued by The Dow Chemical Company on October 22, 2014, announcing results for the third quarter of 2014. |
• | Dow reported earnings of $0.71 per share or $0.72 per share on an adjusted basis(1). This compares with earnings of $0.49 per share, or adjusted earnings of $0.50 per share, in the same quarter last year. |
• | Sales rose 5 percent versus the year-ago period, reaching $14.4 billion, driven by price increases associated with tightening demand conditions in key regions, with gains in most operating segments. Sales gains were led by Performance Plastics (up 9 percent on an adjusted basis(2)), and Performance Materials (up 8 percent). |
• | The Company reported increased sales in all geographic areas. Sales in developed geographies grew 4 percent, led by gains in North America, where sales rose 7 percent. Sales in emerging geographies increased 6 percent, due primarily to strength in Performance Plastics in Latin America. |
• | EBITDA(3) grew to $2.3 billion, up 24 percent versus the prior year, driven by ongoing productivity actions and improved market fundamentals. |
• | Performance Plastics achieved record quarterly adjusted EBITDA results (up 31 percent versus the year-ago period). Performance Materials EBITDA grew 61 percent with increases in most businesses, notably in Polyurethanes and PO/PG. Electronic and Functional Materials also delivered record quarterly EBITDA (up 11 percent). |
• | Adjusted EBITDA margin(4) expanded more than 240 basis points to 15.9 percent year over year. |
• | Dow reported an operating rate of 88 percent, up 6 percent versus the same quarter last year, driven primarily by productivity improvements in Performance Materials and Feedstocks and Energy, coupled with higher operating rates in Performance Plastics. |
• | Cash flow from operations was $1.8 billion for the quarter, and $3.7 billion year-to-date. Dow rewarded shareholders with $1.3 billion in declared dividends and $3.1 billion in share repurchases year to date. |
(1) | “Adjusted earnings per share” is defined as earnings per share excluding the impact of “Certain Items.” See Supplemental Information at the end of the release for a description of these items, as well as a reconciliation of adjusted earnings per share to “Earnings per common share - diluted.” |
(2) | “Adjusted sales” is defined as “Net Sales” excluding sales related to prior-period divestitures. |
(3) | “EBITDA” is defined as earnings (i.e., “Net Income”) before interest, income taxes, depreciation and amortization. A reconciliation of EBITDA to "Net Income Available for The Dow Chemical Company Common Stockholders" is provided following the Operating Segments table. |
(4) | “Adjusted EBITDA margin” is defined as Adjusted EBITDA as a percentage of reported sales. |
Three Months Ended | ||
In millions, except per share amounts | Sept. 30, 2014 | Sept. 30, 2013 |
Net Sales Adjusted Sales | $14,405 $14,405 | $13,734 $13,703 |
Net Income Available for Common Stockholders | $852 | $594 |
Net Income Available for Common Stockholders, excluding Certain Items | $860 | $599 |
Earnings per Common Share - diluted | $0.71 | $0.49 |
Adjusted Earnings per Share | $0.72 | $0.50 |
Three Months Ended | Nine Months Ended | ||||||||||||||
In millions, except per share amounts (Unaudited) | Sep 30, 2014 | Sep 30, 2013 | Sep 30, 2014 | Sep 30, 2013 | |||||||||||
Net Sales | $ | 14,405 | $ | 13,734 | $ | 43,783 | $ | 42,694 | |||||||
Cost of sales | 11,776 | 11,716 | 35,853 | 35,526 | |||||||||||
Research and development expenses | 409 | 418 | 1,219 | 1,270 | |||||||||||
Selling, general and administrative expenses | 753 | 698 | 2,283 | 2,186 | |||||||||||
Amortization of intangibles | 108 | 114 | 330 | 344 | |||||||||||
Equity in earnings of nonconsolidated affiliates | 229 | 322 | 707 | 780 | |||||||||||
Sundry income (expense) - net (Note B) | (23 | ) | 59 | 31 | 2,080 | ||||||||||
Interest income | 10 | 11 | 32 | 29 | |||||||||||
Interest expense and amortization of debt discount | 233 | 264 | 721 | 839 | |||||||||||
Income Before Income Taxes | 1,342 | 916 | 4,147 | 5,418 | |||||||||||
Provision for income taxes (Note C) | 378 | 231 | 1,147 | 1,630 | |||||||||||
Net Income | 964 | 685 | 3,000 | 3,788 | |||||||||||
Net income attributable to noncontrolling interests | 27 | 6 | 47 | 49 | |||||||||||
Net Income Attributable to The Dow Chemical Company | 937 | 679 | 2,953 | 3,739 | |||||||||||
Preferred stock dividends | 85 | 85 | 255 | 255 | |||||||||||
Net Income Available for The Dow Chemical Company Common Stockholders | $ | 852 | $ | 594 | $ | 2,698 | $ | 3,484 | |||||||
Per Common Share Data: | |||||||||||||||
Earnings per common share - basic | $ | 0.72 | $ | 0.50 | $ | 2.27 | $ | 2.92 | |||||||
Earnings per common share - diluted (Note D) | $ | 0.71 | $ | 0.49 | $ | 2.24 | $ | 2.88 | |||||||
Common stock dividends declared per share of common stock | $ | 0.37 | $ | 0.32 | $ | 1.11 | $ | 0.96 | |||||||
Weighted-average common shares outstanding - basic | 1,167.2 | 1,187.4 | 1,178.9 | 1,184.9 | |||||||||||
Weighted-average common shares outstanding - diluted (Note D) | 1,184.1 | 1,194.2 | 1,195.7 | 1,287.8 | |||||||||||
Depreciation | $ | 550 | $ | 509 | $ | 1,592 | $ | 1,518 | |||||||
Capital Expenditures | $ | 930 | $ | 566 | $ | 2,466 | $ | 1,418 |
In millions (Unaudited) | Sep 30, 2014 | Dec 31, 2013 | |||||
Assets | |||||||
Current Assets | |||||||
Cash and cash equivalents (variable interest entities restricted - 2014: $229; 2013: $147) | $ | 5,768 | $ | 5,940 | |||
Accounts and notes receivable: | |||||||
Trade (net of allowance for doubtful receivables - 2014: $150; 2013: $148) | 5,032 | 4,935 | |||||
Other | 4,764 | 4,712 | |||||
Inventories | 9,019 | 8,303 | |||||
Deferred income tax assets - current | 824 | 743 | |||||
Other current assets | 323 | 344 | |||||
Total current assets | 25,730 | 24,977 | |||||
Investments | |||||||
Investment in nonconsolidated affiliates | 4,385 | 4,501 | |||||
Other investments (investments carried at fair value - 2014: $2,049; 2013: $2,056) | 2,489 | 2,541 | |||||
Noncurrent receivables | 396 | 365 | |||||
Total investments | 7,270 | 7,407 | |||||
Property | |||||||
Property | 55,072 | 55,114 | |||||
Less accumulated depreciation | 37,378 | 37,660 | |||||
Net property (variable interest entities restricted - 2014: $2,718; 2013: $2,646) | 17,694 | 17,454 | |||||
Other Assets | |||||||
Goodwill | 12,688 | 12,798 | |||||
Other intangible assets (net of accumulated amortization - 2014: $3,604; 2013: $3,270) | 3,976 | 4,314 | |||||
Deferred income tax assets - noncurrent | 1,572 | 1,964 | |||||
Asbestos-related insurance receivables - noncurrent | 74 | 86 | |||||
Deferred charges and other assets | 569 | 501 | |||||
Total other assets | 18,879 | 19,663 | |||||
Total Assets | $ | 69,573 | $ | 69,501 | |||
Liabilities and Equity | |||||||
Current Liabilities | |||||||
Notes payable | $ | 524 | $ | 443 | |||
Long-term debt due within one year | 257 | 697 | |||||
Accounts payable: | |||||||
Trade | 4,846 | 4,590 | |||||
Other | 2,461 | 2,290 | |||||
Income taxes payable | 572 | 435 | |||||
Deferred income tax liabilities - current | 104 | 133 | |||||
Dividends payable | 513 | 467 | |||||
Accrued and other current liabilities | 2,810 | 2,916 | |||||
Total current liabilities | 12,087 | 11,971 | |||||
Long-Term Debt (variable interest entities nonrecourse - 2014: $1,310; 2013: $1,360) | 19,001 | 16,820 | |||||
Other Noncurrent Liabilities | |||||||
Deferred income tax liabilities - noncurrent | 637 | 718 | |||||
Pension and other postretirement benefits - noncurrent | 7,420 | 8,176 | |||||
Asbestos-related liabilities - noncurrent | 382 | 434 | |||||
Other noncurrent obligations | 3,144 | 3,302 | |||||
Total other noncurrent liabilities | 11,583 | 12,630 | |||||
Redeemable Noncontrolling Interest | 191 | 156 | |||||
Stockholders’ Equity | |||||||
Preferred stock, series A | 4,000 | 4,000 | |||||
Common stock | 3,107 | 3,054 | |||||
Additional paid-in capital | 4,741 | 3,928 | |||||
Retained earnings | 22,792 | 21,407 | |||||
Accumulated other comprehensive loss | (5,371 | ) | (4,827 | ) | |||
Unearned ESOP shares | (337 | ) | (357 | ) | |||
Treasury stock at cost | (3,201 | ) | (307 | ) | |||
The Dow Chemical Company’s stockholders’ equity | 25,731 | 26,898 | |||||
Noncontrolling interests | 980 | 1,026 | |||||
Total equity | 26,711 | 27,924 | |||||
Total Liabilities and Equity | $ | 69,573 | $ | 69,501 |
Three Months Ended | Nine Months Ended | ||||||||||||||
In millions (Unaudited) | Sep 30, 2014 | Sep 30, 2013 | Sep 30, 2014 | Sep 30, 2013 | |||||||||||
Sales by operating segment | |||||||||||||||
Electronic and Functional Materials | $ | 1,199 | $ | 1,168 | $ | 3,537 | $ | 3,461 | |||||||
Coatings and Infrastructure Solutions | 1,846 | 1,839 | 5,546 | 5,394 | |||||||||||
Agricultural Sciences | 1,408 | 1,410 | 5,434 | 5,363 | |||||||||||
Performance Materials | 3,573 | 3,307 | 10,304 | 10,024 | |||||||||||
Performance Plastics | 3,924 | 3,616 | 11,283 | 10,790 | |||||||||||
Feedstocks and Energy | 2,386 | 2,328 | 7,439 | 7,427 | |||||||||||
Corporate | 69 | 66 | 240 | 235 | |||||||||||
Total | $ | 14,405 | $ | 13,734 | $ | 43,783 | $ | 42,694 | |||||||
EBITDA (1) by operating segment | |||||||||||||||
Electronic and Functional Materials | $ | 320 | $ | 287 | $ | 913 | $ | 814 | |||||||
Coatings and Infrastructure Solutions | 289 | 283 | 770 | 719 | |||||||||||
Agricultural Sciences | 5 | 18 | 815 | 792 | |||||||||||
Performance Materials | 506 | 314 | 1,332 | 1,038 | |||||||||||
Performance Plastics | 1,275 | 970 | 3,342 | 2,932 | |||||||||||
Feedstocks and Energy | 183 | 187 | 546 | 620 | |||||||||||
Corporate | (307 | ) | (225 | ) | (827 | ) | 1,305 | ||||||||
Total | $ | 2,271 | $ | 1,834 | $ | 6,891 | $ | 8,220 | |||||||
Certain items (increasing) decreasing EBITDA by operating segment (2) | |||||||||||||||
Electronic and Functional Materials | $ | — | $ | — | $ | — | $ | — | |||||||
Coatings and Infrastructure Solutions | — | — | — | — | |||||||||||
Agricultural Sciences | — | — | — | — | |||||||||||
Performance Materials | — | — | — | — | |||||||||||
Performance Plastics | — | — | — | — | |||||||||||
Feedstocks and Energy | — | — | — | — | |||||||||||
Corporate | (12 | ) | (7 | ) | (30 | ) | 1,960 | ||||||||
Total | $ | (12 | ) | $ | (7 | ) | $ | (30 | ) | $ | 1,960 | ||||
EBITDA excluding certain items by operating segment | |||||||||||||||
Electronic and Functional Materials | $ | 320 | $ | 287 | $ | 913 | $ | 814 | |||||||
Coatings and Infrastructure Solutions | 289 | 283 | 770 | 719 | |||||||||||
Agricultural Sciences | 5 | 18 | 815 | 792 | |||||||||||
Performance Materials | 506 | 314 | 1,332 | 1,038 | |||||||||||
Performance Plastics | 1,275 | 970 | 3,342 | 2,932 | |||||||||||
Feedstocks and Energy | 183 | 187 | 546 | 620 | |||||||||||
Corporate | (295 | ) | (218 | ) | (797 | ) | (655 | ) | |||||||
Total | $ | 2,283 | $ | 1,841 | $ | 6,921 | $ | 6,260 |
Three Months Ended | Nine Months Ended | ||||||||||||||
In millions (Unaudited) | Sep 30, 2014 | Sep 30, 2013 | Sep 30, 2014 | Sep 30, 2013 | |||||||||||
Equity in earnings (losses) of nonconsolidated affiliates by operating segment (included in EBITDA) | |||||||||||||||
Electronic and Functional Materials | $ | 35 | $ | 36 | $ | 88 | $ | 81 | |||||||
Coatings and Infrastructure Solutions | 54 | 32 | 168 | 83 | |||||||||||
Agricultural Sciences | 1 | 3 | 3 | 6 | |||||||||||
Performance Materials | (29 | ) | (11 | ) | (83 | ) | (46 | ) | |||||||
Performance Plastics | 66 | 134 | 198 | 279 | |||||||||||
Feedstocks and Energy | 108 | 135 | 354 | 399 | |||||||||||
Corporate | (6 | ) | (7 | ) | (21 | ) | (22 | ) | |||||||
Total | $ | 229 | $ | 322 | $ | 707 | $ | 780 |
(1) | 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, except depreciation and amortization; items that principally apply to the Company as a whole are assigned to Corporate. A reconciliation of EBITDA to "Net Income Available for The Dow Chemical Company Common Stockholders" is provided below. |
Reconciliation of EBITDA to "Net Income Available for The Dow Chemical Company Common Stockholders" | Three Months Ended | Nine Months Ended | |||||||||||||
In millions (Unaudited) | Sep 30, 2014 | Sep 30, 2013 | Sep 30, 2014 | Sep 30, 2013 | |||||||||||
EBITDA | $ | 2,271 | $ | 1,834 | $ | 6,891 | $ | 8,220 | |||||||
- Depreciation and amortization | 706 | 665 | 2,055 | 1,992 | |||||||||||
+ Interest income | 10 | 11 | 32 | 29 | |||||||||||
- Interest expense and amortization of debt discount | 233 | 264 | 721 | 839 | |||||||||||
Income Before Income Taxes | $ | 1,342 | $ | 916 | $ | 4,147 | $ | 5,418 | |||||||
- Provision for income taxes | 378 | 231 | 1,147 | 1,630 | |||||||||||
- Net income attributable to noncontrolling interests | 27 | 6 | 47 | 49 | |||||||||||
- Preferred stock dividends | 85 | 85 | 255 | 255 | |||||||||||
Net Income Available for The Dow Chemical Company Common Stockholders | $ | 852 | $ | 594 | $ | 2,698 | $ | 3,484 |
(2) | See Supplemental Information for a description of certain items affecting results in 2014 and 2013. |
Three Months Ended | Nine Months Ended | ||||||||||||||
In millions (Unaudited) | Sep 30, 2014 | Sep 30, 2013 | Sep 30, 2014 | Sep 30, 2013 | |||||||||||
North America | $ | 5,287 | $ | 4,918 | $ | 16,222 | $ | 15,741 | |||||||
Europe, Middle East and Africa | 4,437 | 4,308 | 14,274 | 13,794 | |||||||||||
Asia Pacific | 2,518 | 2,474 | 7,616 | 7,564 | |||||||||||
Latin America | 2,163 | 2,034 | 5,671 | 5,595 | |||||||||||
Total | $ | 14,405 | $ | 13,734 | $ | 43,783 | $ | 42,694 |
Three Months Ended | Nine Months Ended | ||||||||||||||||
Sep 30, 2014 | Sep 30, 2014 | ||||||||||||||||
Percentage change from prior year | Volume | Price | Total | Volume | Price | Total | |||||||||||
Electronic and Functional Materials | 3 | % | — | % | 3 | % | 3 | % | (1 | )% | 2 | % | |||||
Coatings and Infrastructure Solutions | — | — | — | 3 | — | 3 | |||||||||||
Agricultural Sciences | (2 | ) | 2 | — | 1 | — | 1 | ||||||||||
Performance Materials | 6 | 2 | 8 | 2 | 1 | 3 | |||||||||||
Performance Plastics | 2 | 6 | 8 | (2 | ) | 6 | 4 | ||||||||||
Feedstocks and Energy | (1 | ) | 3 | 2 | 1 | (1 | ) | — | |||||||||
Total | 2 | % | 3 | % | 5 | % | 1 | % | 2 | % | 3 | % | |||||
North America | 3 | % | 4 | % | 7 | % | — | % | 3 | % | 3 | % | |||||
Europe, Middle East and Africa | 1 | 2 | 3 | 1 | 2 | 3 | |||||||||||
Asia Pacific | — | 2 | 2 | — | 1 | 1 | |||||||||||
Latin America | 3 | 3 | 6 | — | 1 | 1 | |||||||||||
Total | 2 | % | 3 | % | 5 | % | 1 | % | 2 | % | 3 | % | |||||
Developed geographies | 1 | % | 3 | % | 4 | % | — | % | 2 | % | 2 | % | |||||
Emerging geographies (1) | 4 | 2 | 6 | 2 | 1 | 3 | |||||||||||
Total | 2 | % | 3 | % | 5 | % | 1 | % | 2 | % | 3 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||
Sep 30, 2014 | Sep 30, 2014 | ||||||||||||||||
Percentage change from prior year | Volume | Price | Total | Volume | Price | Total | |||||||||||
Electronic and Functional Materials | 3 | % | — | % | 3 | % | 3 | % | (1 | )% | 2 | % | |||||
Coatings and Infrastructure Solutions | — | — | — | 3 | — | 3 | |||||||||||
Agricultural Sciences | (2 | ) | 2 | — | 1 | — | 1 | ||||||||||
Performance Materials | 6 | 2 | 8 | 2 | 1 | 3 | |||||||||||
Performance Plastics | 3 | 6 | 9 | — | 6 | 6 | |||||||||||
Feedstocks and Energy | (1 | ) | 3 | 2 | 1 | (1 | ) | — | |||||||||
Total | 2 | % | 3 | % | 5 | % | 1 | % | 2 | % | 3 | % | |||||
North America | 3 | % | 4 | % | 7 | % | — | % | 3 | % | 3 | % | |||||
Europe, Middle East and Africa | 1 | 2 | 3 | 2 | 2 | 4 | |||||||||||
Asia Pacific | — | 2 | 2 | 2 | 1 | 3 | |||||||||||
Latin America | 3 | 3 | 6 | — | 1 | 1 | |||||||||||
Total | 2 | % | 3 | % | 5 | % | 1 | % | 2 | % | 3 | % | |||||
Developed geographies | 1 | % | 3 | % | 4 | % | 1 | % | 2 | % | 3 | % | |||||
Emerging geographies (1) | 4 | 2 | 6 | 3 | 1 | 4 | |||||||||||
Total | 2 | % | 3 | % | 5 | % | 1 | % | 2 | % | 3 | % |
(1) | Emerging geographies includes Eastern Europe, Middle East, Africa, Latin America and Asia Pacific excluding Australia, Japan and New Zealand. |
(2) | Excludes sales related to Nippon Unicar Company Limited, divested on July 1, 2013, and sales of the Polypropylene Licensing and Catalysts business, divested on December 2, 2013. |
Certain Items Impacting Results | Pretax Impact (1) | Net Income (2) | EPS - Diluted (3) | ||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||||
In millions, except per share amounts (Unaudited) | Sep 30, 2014 | Sep 30, 2013 | Sep 30, 2014 | Sep 30, 2013 | Sep 30, 2014 | Sep 30, 2013 | |||||||||||||||||
Adjusted to exclude certain items (non-GAAP measures) | $ | 860 | $ | 599 | $ | 0.72 | $ | 0.50 | |||||||||||||||
Certain items: | |||||||||||||||||||||||
Restructuring plan implementation costs | $ | — | $ | (7 | ) | — | (5 | ) | — | (0.01 | ) | ||||||||||||
Chlorine value chain separation costs | (12 | ) | — | (8 | ) | — | (0.01 | ) | — | ||||||||||||||
Total certain items | $ | (12 | ) | $ | (7 | ) | $ | (8 | ) | $ | (5 | ) | $ | (0.01 | ) | $ | (0.01 | ) | |||||
Reported GAAP Amounts | $ | 852 | $ | 594 | $ | 0.71 | $ | 0.49 |
Certain Items Impacting Results | Pretax Impact (1) | Net Income (2) | EPS - Diluted (3) (4) | ||||||||||||||||||||
Nine Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||
In millions, except per share amounts (Unaudited) | Sep 30, 2014 | Sep 30, 2013 | Sep 30, 2014 | Sep 30, 2013 | Sep 30, 2014 | Sep 30, 2013 | |||||||||||||||||
Adjusted to exclude certain items (non-GAAP measures) | $ | 2,717 | $ | 2,188 | $ | 2.26 | $ | 1.83 | |||||||||||||||
Certain items: | |||||||||||||||||||||||
Restructuring plan implementation costs | $ | — | $ | (31 | ) | — | (21 | ) | — | (0.02 | ) | ||||||||||||
Chlorine value chain separation costs | (30 | ) | — | (19 | ) | — | (0.02 | ) | — | ||||||||||||||
Loss on early extinguishment of debt | — | (170 | ) | — | (107 | ) | — | (0.09 | ) | ||||||||||||||
Gain from K-Dow arbitration | — | 2,161 | — | 1,647 | — | 1.37 | |||||||||||||||||
Uncertain tax position adjustments | — | — | — | (223 | ) | — | (0.19 | ) | |||||||||||||||
Total certain items | $ | (30 | ) | $ | 1,960 | $ | (19 | ) | $ | 1,296 | $ | (0.02 | ) | $ | 1.07 | ||||||||
Dilutive effect of assumed preferred stock conversion into shares of common stock | (0.02 | ) | |||||||||||||||||||||
Reported GAAP Amounts (5) (6) | $ | 2,698 | $ | 3,484 | $ | 2.24 | $ | 2.88 |
(1) | Impact on "Income Before Income Taxes." |
(2) | "Net Income Available for The Dow Chemical Company Common Stockholders." |
(3) | "Earnings per common share - diluted." |
(4) | For the nine-month period ended September 30, 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 nine-month period ended September 30, 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 GAAP amount). |
(6) | The Company used "Net Income Attributable to The Dow Chemical Company" when calculating diluted earnings per share (reported GAAP amount) for the nine-month period ended September 30, 2013, as it excludes preferred dividends of $255 million. |
Common Shares - Diluted | Three Months Ended | Nine Months Ended | |||||||||
In millions | Sep 30, 2014 | Sep 30, 2013 | Sep 30, 2014 | Sep 30, 2013 | |||||||
Share count - diluted, excluding preferred stock conversion to common shares | 1,184.1 | 1,194.2 | 1,195.7 | 1,191.0 | |||||||
Potential common shares from assumed conversion of preferred stock, included in reported GAAP EPS calculation | N/A | N/A | N/A | 96.8 | |||||||
Share count - diluted, including assumed preferred stock conversion to common shares | N/A | N/A | N/A | 1,287.8 |
• | Pretax charges of $12 million for nonrecurring transaction costs associated with the planned separation of a significant portion of the Company’s chlorine value chain, consisting primarily of financial and professional advisory fees and legal fees ("Chlorine value chain separation costs"). The charges were included in "Sundry income (expense) - net" in the consolidated statements of income and reflected in Corporate. |
• | Pretax charges of $7 million for implementation costs related to the Company's restructuring programs. The charges were included in "Cost of sales" in the consolidated statements of income and reflected in Corporate. |
• | Pretax charges of $18 million for Chlorine value chain separation costs. The charges were included in "Sundry income (expense) - net" in the consolidated statements of income and reflected in Corporate. |
• | Pretax charges of $24 million for implementation costs related to the Company's restructuring programs. The charges were included in "Cost of sales" ($23 million) and "Selling, general and administration expenses" ($1 million) in the consolidated statements of income and reflected in Corporate. |
• | Pretax loss of $170 million on the early extinguishment of debt, included in "Sundry income (expense) - net" in the consolidated statements of income and reflected in Corporate. |
• | Pretax gain of $2.161 billion related to damages awarded to the Company in the K-Dow arbitration proceeding. The gain was included in "Sundry income (expense) - net" in the consolidated statements of income and reflected in Corporate. |
• | A tax charge of $223 million related to court rulings on two separate matters that resulted in the adjustment of uncertain tax positions. |