CONSOLIDATED FINANCIAL STATEMENTS

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

The unaudited interim consolidated financial statements of The Dow Chemical Company and its subsidiaries (“Dow” or the “Company”) were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and reflect all adjustments (including normal recurring accruals) which, in the opinion of management, are considered necessary for the fair presentation of the results for the periods presented. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

Updated Significant Accounting Policy

Foreign Currency Translation

The local currency has been primarily used as the functional currency throughout the world. Translation gains and losses of those operations that use local currency as the functional currency are included in the consolidated balance sheets in "Accumulated other comprehensive loss" ("AOCL"). For certain subsidiaries, the U.S. dollar is used as the functional currency. This occurs when the subsidiary operates in an economic environment where the products produced and sold are tied to U.S. dollar-denominated markets, or when the foreign subsidiary operates in a hyper-inflationary environment. Where the U.S. dollar is used as the functional currency, foreign currency translation gains and losses are reflected in income.

Adoption of Accounting Standards Update 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes"

In the first quarter of 2016, the Company early adopted Accounting Standards Update ("ASU") 2015-17. The Company elected to apply the new guidance on a retrospective basis and, as a result, changes have been made to the presentation of deferred income tax assets and liabilities in the consolidated balance sheets at December 31, 2015. See Note 2 for additional information. In addition, a change was made to the prior year consolidated balance sheets to reclassify prepaid tax assets of $293 million to "Other current assets." A summary of the changes made to the consolidated balance sheets at December 31, 2015, is included in the following table:



Summary of Changes to the Consolidated Balance Sheets at December 31, 2015
In millions	As Filed		Updated
Deferred income tax assets - current	$	827	$	—
Other current assets	$	354	$	647
Total current assets	$	24,475	$	23,941
Deferred income tax assets - noncurrent	$	1,694	$	2,140
Total other assets	$	18,051	$	18,497
Total Assets	$	68,026	$	67,938
Deferred income tax liabilities - current	$	100	$	—
Total current liabilities	$	11,215	$	11,115
Deferred income tax liabilities - noncurrent	$	575	$	587
Total other noncurrent liabilities	$	14,413	$	14,425
Total Liabilities and Equity	$	68,026	$	67,938