Asset Impairment Charges and Exit Costs

6 Months Ended

Dec. 31, 2011

Asset Impairment Charges And Exit Costs

Asset Impairment Charges And Exit Costs

Note 14. Asset Impairment Charges and Exit Costs

During the second quarter of fiscal 2012, the Company determined that the carrying values of its Clinton, IA bioplastic facility's long-lived assets were greater than their future net undiscounted cash flows.  Accordingly, the Company recorded charges in the Corn Processing segment of $337 million related to the impairment of its Clinton, IA bioplastic facility's property, plant, and equipment and inventories and $2 million in other exit costs.  In addition, the Company recognized an other-than-temporary impairment charge in Corporate of $13 million related to its investment in Metabolix, Inc. and a $3 million charge in income taxes.

As of December 31, 2011, the carrying amounts of the impaired property, plant, and equipment and inventories approximate their estimated fair values.  The Company estimated the fair value of these assets based on limited market data available and on its ability to redeploy the assets within its own operations.