Focus - The Dow Chemical Company

More documents

Recommendations

Info

Management Team at March 1, 2003 Arnold A. Allemang, Executive Vice President, Operations Kathleen M. Bader, Business Group President (Engineering Plastics, Fabricated Products, Polystyrene, Synthetic Rubber); and responsibility for Six Sigma A. Charles Fischer, President and CEO, Dow AgroSciences LLC Richard M. Gross, Corporate Vice President, Research & Development and New Business Growth Chairman of the Board, President and Chief Executive Officer William S. Stavropoulos Executive Vice President and Chief Financial Officer J. Pedro Reinhard > 20 The Dow Chemical Company David E. Kepler, Corporate Vice President and Chief Information Officer; and responsibility for eBusiness and Advanced Electronic Materials Romeo Kreinberg, Business Group President (Dow Fiber Solutions, Polyethylene, Polypropylene, PET/PTA, Wire & Cable Compounds) Andrew N. Liveris, Business Group President (Custom and Fine Chemicals, Emulsion Polymers, Industrial Chemicals, Oxide Derivatives, Specialty Polymers, UCAR Emulsion Systems, Water Soluble Polymers) Corporate Organization at March 1, 2003 Executive Vice President Arnold A. Allemang Corporate Vice President, Environment, Health & Safety, Human Resources and Public Affairs Lawrence J. Washington, Jr. Corporate Vice President, Research & Development and New Business Growth Richard M. Gross Richard L. Manetta, Corporate Vice President and General Counsel Lee P. McMaster, Business Group President (Core Chemicals, Environmental Operations, Technology Licensing and Catalysts) J. Pedro Reinhard, Executive Vice President and Chief Financial Officer Luciano Respini, President, Dow Europe; Chairman of the Global Geographic Council; and responsibility for Sales and Marketing Corporate Vice President and Chief Information Officer David E. Kepler Corporate Vice President and General Counsel Richard L. Manetta Vice President and Controller Frank H. Brod Vice President and Treasurer Fernando Ruiz William S. Stavropoulos, President and Chief Executive Officer Theo H. Walthie, Business Group President (Hydrocarbons & Energy, Ethylene Oxide/Ethylene Glycol) Lawrence J. Washington, Jr., Corporate Vice President, Environment, Health & Safety, Human Resources and Public Affairs Robert L. Wood, Business Group President (Polyurethanes, Polyurethanes Systems, Epoxy Products and Intermediates, Dow Automotive) Secretary of the Company Tina S. Van Dam Assistant Secretary Charles J. Hahn Thomas E. Moran Corporate Auditor Douglas J. Anderson
2002 Financial Report Management’s Discussion and Analysis of Financial Condition and Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Segment Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Accounting Changes and Critical Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Environmental Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Asbestos-Related Matters of Union Carbide Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Management Statement of Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Independent Auditors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Notes to the Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 A. Summary of Significant Accounting Policies and Accounting Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 B. Purchased In-Process Research and Development, and Merger-Related Expenses and Restructuring . . . . . . . . . . . . . . . 49 C. Acquisitions and Divestitures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 D. Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 E. Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 F. Goodwill and Other Intangible Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 G. Significant Nonconsolidated Affiliates and Related Company Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 H. Financial Instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 I. Supplementary Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 J. Commitments and Contingent Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 K. Notes Payable, Long-Term Debt and Available Credit Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 L. Pension Plans and Other Postretirement Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 M. Leased Property and Variable Interest Entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 N. Stock Compensation Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 O. Limited Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 P. Preferred Securities of Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Q. Stockholders’ Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 R. Employee Stock Ownership Plans and Redeemable Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 S. Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 T. Operating Segments and Geographic Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 U. Subsequent Event . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Quarterly Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Eleven-Year Review of Market Price per Share of Common Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Eleven-Year Summary of Selected Financial Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements made by or on behalf of The Dow Chemical Company and its subsidiaries (“Dow” or the “Company”). This section covers the current performance and outlook of the Company and each of its operating segments. The forward-looking statements contained in this section and in other parts of this document involve risks and uncertainties that may affect the Company’s operations, markets, products, services, prices and other factors as more fully discussed elsewhere and in filings with the U.S. Securities and Exchange Commission (“SEC”). These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental and technological factors. Accordingly, there is no assurance that the Company’s expectations will be realized. The Company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws. The Dow Chemical Company 21 >
Page 1 and 2: The Dow Chemical Company 2002 Annua
Page 3 and 4: 2002 Financial Highlights IN MILLIO
Page 5 and 6: • Continued growth in Asia, where
Page 7 and 8: Board of Directors at March 1, 2003
Page 9 and 10: At Dow, we continue to shape, simpl
Page 11 and 12: The key to Dow’s success is being
Page 13 and 14: A steadfast and disciplined approac
Page 15 and 16: Dow is working to conserve water at
Page 17 and 18: Living. Improved daily. Corporate S
Page 19 and 20: Fabricated Products business manufa
Page 21: Polypropylene business, a major glo
Page 25 and 26: Management’s Discussion and Analy
Page 43 and 44: Consolidated Statements of Income (
Page 45 and 46: Consolidated Statements of Cash Flo
Page 47 and 48: Consolidated Statements of Comprehe
Page 49 and 50: Notes to the Consolidated Financial
Page 73 and 74:
Notes to the Consolidated Financial
Page 75 and 76:
Quarterly Statistics IN MILLIONS, E
Page 77 and 78:
Eleven-Year Summary of Selected Fin
Page 79 and 80:
�Mission To constantly improve wh
show all

Focus - The Dow Chemical Company

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?