Commission File Number | Exact Name of Registrant as Specified in its Charter, Principal Office Address and Telephone Number | State of Incorporation or Organization | I.R.S. Employer Identification No. | ||||||||
001-38646 | Dow Inc. | Delaware | 30-1128146 | ||||||||
2211 H.H. Dow Way, Midland, MI 48674 | |||||||||||
(989) 636-1000 | |||||||||||
001-03433 | The Dow Chemical Company | Delaware | 38-1285128 | ||||||||
2211 H.H. Dow Way, Midland, MI 48674 | |||||||||||
(989) 636-1000 |
Registrant | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||
Dow Inc. | Common Stock, par value $0.01 per share | DOW | New York Stock Exchange | ||||||||
The Dow Chemical Company | 0.500% Notes due March 15, 2027 | DOW/27 | New York Stock Exchange | ||||||||
The Dow Chemical Company | 1.125% Notes due March 15, 2032 | DOW/32 | New York Stock Exchange | ||||||||
The Dow Chemical Company | 1.875% Notes due March 15, 2040 | DOW/40 | New York Stock Exchange | ||||||||
The Dow Chemical Company | 4.625% Notes due October 1, 2044 | DOW/44 | New York Stock Exchange |
Dow Inc. | ☑ | Yes | ☐ | No | The Dow Chemical Company | ☑ | Yes | ☐ | No |
Dow Inc. | ☑ | Yes | ☐ | No | The Dow Chemical Company | ☑ | Yes | ☐ | No |
Dow Inc. | Large accelerated filer | ☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ | ||||||||||||||||||||||
The Dow Chemical Company | Large accelerated filer | ☐ | Accelerated filer | ☐ | Non-accelerated filer | ☑ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
Dow Inc. | ☐ | The Dow Chemical Company | ☐ |
Dow Inc. | ☐ | Yes | ☑ | No | The Dow Chemical Company | ☐ | Yes | ☑ | No |
PAGE | ||||||||
Item 1. | ||||||||
Dow Inc. and Subsidiaries: | ||||||||
The Dow Chemical Company and Subsidiaries: | ||||||||
Dow Inc. and Subsidiaries and The Dow Chemical Company and Subsidiaries: | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Dow Inc. and Subsidiaries The Dow Chemical Company and Subsidiaries |
PART I – FINANCIAL INFORMATION |
ITEM 1. FINANCIAL STATEMENTS |
Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
In millions, except per share amounts (Unaudited) | In millions, except per share amounts (Unaudited) | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | In millions, except per share amounts (Unaudited) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||
Net sales | Net sales | $ | 11,420 | $ | 15,664 | $ | 23,271 | $ | 30,928 | Net sales | $ | 10,730 | $ | 14,115 | $ | 34,001 | $ | 45,043 | ||||||||||
Cost of sales | Cost of sales | 9,875 | 12,899 | 20,504 | 25,301 | Cost of sales | 9,592 | 12,381 | 30,096 | 37,682 | ||||||||||||||||||
Research and development expenses | Research and development expenses | 205 | 217 | 419 | 435 | Research and development expenses | 197 | 191 | 616 | 626 | ||||||||||||||||||
Selling, general and administrative expenses | Selling, general and administrative expenses | 408 | 435 | 836 | 933 | Selling, general and administrative expenses | 380 | 356 | 1,216 | 1,289 | ||||||||||||||||||
Amortization of intangibles | Amortization of intangibles | 81 | 85 | 162 | 173 | Amortization of intangibles | 81 | 83 | 243 | 256 | ||||||||||||||||||
Restructuring and asset related charges - net | Restructuring and asset related charges - net | 8 | — | 549 | 186 | Restructuring and asset related charges - net | — | — | 549 | 186 | ||||||||||||||||||
Equity in earnings (losses) of nonconsolidated affiliates | Equity in earnings (losses) of nonconsolidated affiliates | (57) | 195 | (105) | 369 | Equity in earnings (losses) of nonconsolidated affiliates | (7) | (58) | (112) | 311 | ||||||||||||||||||
Sundry income (expense) - net | Sundry income (expense) - net | 31 | 75 | 110 | 223 | Sundry income (expense) - net | 92 | 69 | 202 | 292 | ||||||||||||||||||
Interest income | Interest income | 66 | 36 | 142 | 64 | Interest income | 44 | 41 | 186 | 105 | ||||||||||||||||||
Interest expense and amortization of debt discount | Interest expense and amortization of debt discount | 172 | 165 | 357 | 332 | Interest expense and amortization of debt discount | 192 | 155 | 549 | 487 | ||||||||||||||||||
Income before income taxes | Income before income taxes | 711 | 2,169 | 591 | 4,224 | Income before income taxes | 417 | 1,001 | 1,008 | 5,225 | ||||||||||||||||||
Provision for income taxes | Provision for income taxes | 210 | 488 | 163 | 991 | Provision for income taxes | 90 | 241 | 253 | 1,232 | ||||||||||||||||||
Net income | Net income | 501 | 1,681 | 428 | 3,233 | Net income | 327 | 760 | 755 | 3,993 | ||||||||||||||||||
Net income attributable to noncontrolling interests | Net income attributable to noncontrolling interests | 16 | 20 | 36 | 3 | Net income attributable to noncontrolling interests | 25 | 21 | 61 | 24 | ||||||||||||||||||
Net income available for Dow Inc. common stockholders | Net income available for Dow Inc. common stockholders | $ | 485 | $ | 1,661 | $ | 392 | $ | 3,230 | Net income available for Dow Inc. common stockholders | $ | 302 | $ | 739 | $ | 694 | $ | 3,969 | ||||||||||
Per common share data: | Per common share data: | Per common share data: | ||||||||||||||||||||||||||
Earnings per common share - basic | Earnings per common share - basic | $ | 0.68 | $ | 2.28 | $ | 0.55 | $ | 4.40 | Earnings per common share - basic | $ | 0.43 | $ | 1.03 | $ | 0.97 | $ | 5.45 | ||||||||||
Earnings per common share - diluted | Earnings per common share - diluted | $ | 0.68 | $ | 2.26 | $ | 0.54 | $ | 4.37 | Earnings per common share - diluted | $ | 0.42 | $ | 1.02 | $ | 0.97 | $ | 5.41 | ||||||||||
Weighted-average common shares outstanding - basic | Weighted-average common shares outstanding - basic | 707.0 | 725.7 | 707.6 | 730.2 | Weighted-average common shares outstanding - basic | 704.0 | 714.3 | 706.4 | 724.9 | ||||||||||||||||||
Weighted-average common shares outstanding - diluted | Weighted-average common shares outstanding - diluted | 709.9 | 731.5 | 710.7 | 735.6 | Weighted-average common shares outstanding - diluted | 707.5 | 718.1 | 709.7 | 729.8 | ||||||||||||||||||
Depreciation | Depreciation | $ | 484 | $ | 486 | $ | 959 | $ | 977 | Depreciation | $ | 484 | $ | 482 | $ | 1,443 | $ | 1,459 | ||||||||||
Capital expenditures | Capital expenditures | $ | 561 | $ | 457 | $ | 1,001 | $ | 772 | Capital expenditures | $ | 597 | $ | 452 | $ | 1,598 | $ | 1,224 |
Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
In millions (Unaudited) | In millions (Unaudited) | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | In millions (Unaudited) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||
Net income | Net income | $ | 501 | $ | 1,681 | $ | 428 | $ | 3,233 | Net income | $ | 327 | $ | 760 | $ | 755 | $ | 3,993 | ||||||||||
Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | ||||||||||||||||||||||||||
Unrealized gains (losses) on investments | Unrealized gains (losses) on investments | 61 | (153) | 92 | (249) | Unrealized gains (losses) on investments | (20) | (122) | 72 | (371) | ||||||||||||||||||
Cumulative translation adjustments | Cumulative translation adjustments | (103) | (514) | (2) | (678) | Cumulative translation adjustments | (147) | (403) | (149) | (1,081) | ||||||||||||||||||
Pension and other postretirement benefit plans | Pension and other postretirement benefit plans | (4) | 122 | 2 | 231 | Pension and other postretirement benefit plans | (2) | 125 | — | 356 | ||||||||||||||||||
Derivative instruments | Derivative instruments | 44 | 137 | (20) | 469 | Derivative instruments | (25) | 22 | (45) | 491 | ||||||||||||||||||
Total other comprehensive income (loss) | (2) | (408) | 72 | (227) | ||||||||||||||||||||||||
Total other comprehensive loss | Total other comprehensive loss | (194) | (378) | (122) | (605) | |||||||||||||||||||||||
Comprehensive income | Comprehensive income | 499 | 1,273 | 500 | 3,006 | Comprehensive income | 133 | 382 | 633 | 3,388 | ||||||||||||||||||
Comprehensive income attributable to noncontrolling interests, net of tax | Comprehensive income attributable to noncontrolling interests, net of tax | 16 | 20 | 36 | 3 | Comprehensive income attributable to noncontrolling interests, net of tax | 25 | 21 | 61 | 24 | ||||||||||||||||||
Comprehensive income attributable to Dow Inc. | Comprehensive income attributable to Dow Inc. | $ | 483 | $ | 1,253 | $ | 464 | $ | 3,003 | Comprehensive income attributable to Dow Inc. | $ | 108 | $ | 361 | $ | 572 | $ | 3,364 |
In millions, except share amounts (Unaudited) | In millions, except share amounts (Unaudited) | Jun 30, 2023 | Dec 31, 2022 | In millions, except share amounts (Unaudited) | Sep 30, 2023 | Dec 31, 2022 | ||||||||||
Assets | Assets | Assets | ||||||||||||||
Current Assets | Current Assets | Current Assets | ||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 2,924 | $ | 3,886 | Cash and cash equivalents | $ | 3,080 | $ | 3,886 | ||||||
Accounts and notes receivable: | Accounts and notes receivable: | Accounts and notes receivable: | ||||||||||||||
Trade (net of allowance for doubtful receivables - 2023: $105; 2022: $110) | 5,539 | 5,611 | ||||||||||||||
Trade (net of allowance for doubtful receivables - 2023: $80; 2022: $110) | Trade (net of allowance for doubtful receivables - 2023: $80; 2022: $110) | 5,343 | 5,611 | |||||||||||||
Other | Other | 2,119 | 2,144 | Other | 2,039 | 2,144 | ||||||||||
Inventories | Inventories | 6,487 | 6,988 | Inventories | 6,211 | 6,988 | ||||||||||
Other current assets | Other current assets | 1,480 | 1,848 | Other current assets | 1,625 | 1,848 | ||||||||||
Total current assets | Total current assets | 18,549 | 20,477 | Total current assets | 18,298 | 20,477 | ||||||||||
Investments | Investments | Investments | ||||||||||||||
Investment in nonconsolidated affiliates | Investment in nonconsolidated affiliates | 1,335 | 1,589 | Investment in nonconsolidated affiliates | 1,289 | 1,589 | ||||||||||
Other investments (investments carried at fair value - 2023: $1,802; 2022: $1,757) | 2,823 | 2,793 | ||||||||||||||
Other investments (investments carried at fair value - 2023: $1,929; 2022: $1,757) | Other investments (investments carried at fair value - 2023: $1,929; 2022: $1,757) | 2,904 | 2,793 | |||||||||||||
Noncurrent receivables | Noncurrent receivables | 561 | 666 | Noncurrent receivables | 555 | 666 | ||||||||||
Total investments | Total investments | 4,719 | 5,048 | Total investments | 4,748 | 5,048 | ||||||||||
Property | Property | Property | ||||||||||||||
Property | Property | 59,145 | 58,055 | Property | 59,525 | 58,055 | ||||||||||
Less: Accumulated depreciation | Less: Accumulated depreciation | 38,743 | 37,613 | Less: Accumulated depreciation | 38,965 | 37,613 | ||||||||||
Net property | Net property | 20,402 | 20,442 | Net property | 20,560 | 20,442 | ||||||||||
Other Assets | Other Assets | Other Assets | ||||||||||||||
Goodwill | Goodwill | 8,615 | 8,644 | Goodwill | 8,580 | 8,644 | ||||||||||
Other intangible assets (net of accumulated amortization - 2023: $5,201; 2022: $5,022) | 2,231 | 2,442 | ||||||||||||||
Other intangible assets (net of accumulated amortization - 2023: $5,279; 2022: $5,022) | Other intangible assets (net of accumulated amortization - 2023: $5,279; 2022: $5,022) | 2,132 | 2,442 | |||||||||||||
Operating lease right-of-use assets | Operating lease right-of-use assets | 1,297 | 1,227 | Operating lease right-of-use assets | 1,288 | 1,227 | ||||||||||
Deferred income tax assets | Deferred income tax assets | 1,075 | 960 | Deferred income tax assets | 1,248 | 960 | ||||||||||
Deferred charges and other assets | Deferred charges and other assets | 1,406 | 1,363 | Deferred charges and other assets | 1,434 | 1,363 | ||||||||||
Total other assets | Total other assets | 14,624 | 14,636 | Total other assets | 14,682 | 14,636 | ||||||||||
Total Assets | Total Assets | $ | 58,294 | $ | 60,603 | Total Assets | $ | 58,288 | $ | 60,603 | ||||||
Liabilities and Equity | Liabilities and Equity | Liabilities and Equity | ||||||||||||||
Current Liabilities | Current Liabilities | Current Liabilities | ||||||||||||||
Notes payable | Notes payable | $ | 102 | $ | 362 | Notes payable | $ | 223 | $ | 362 | ||||||
Long-term debt due within one year | Long-term debt due within one year | 107 | 362 | Long-term debt due within one year | 110 | 362 | ||||||||||
Accounts payable: | Accounts payable: | Accounts payable: | ||||||||||||||
Trade | Trade | 4,286 | 4,940 | Trade | 4,293 | 4,940 | ||||||||||
Other | Other | 1,879 | 2,276 | Other | 2,025 | 2,276 | ||||||||||
Operating lease liabilities - current | Operating lease liabilities - current | 317 | 287 | Operating lease liabilities - current | 325 | 287 | ||||||||||
Income taxes payable | Income taxes payable | 339 | 334 | Income taxes payable | 393 | 334 | ||||||||||
Accrued and other current liabilities | Accrued and other current liabilities | 2,619 | 2,770 | Accrued and other current liabilities | 2,879 | 2,770 | ||||||||||
Total current liabilities | Total current liabilities | 9,649 | 11,331 | Total current liabilities | 10,248 | 11,331 | ||||||||||
Long-Term Debt | Long-Term Debt | 14,735 | 14,698 | Long-Term Debt | 14,592 | 14,698 | ||||||||||
Other Noncurrent Liabilities | Other Noncurrent Liabilities | Other Noncurrent Liabilities | ||||||||||||||
Deferred income tax liabilities | Deferred income tax liabilities | 671 | 1,110 | Deferred income tax liabilities | 668 | 1,110 | ||||||||||
Pension and other postretirement benefits - noncurrent | Pension and other postretirement benefits - noncurrent | 3,735 | 3,808 | Pension and other postretirement benefits - noncurrent | 3,617 | 3,808 | ||||||||||
Asbestos-related liabilities - noncurrent | Asbestos-related liabilities - noncurrent | 819 | 857 | Asbestos-related liabilities - noncurrent | 804 | 857 | ||||||||||
Operating lease liabilities - noncurrent | Operating lease liabilities - noncurrent | 1,036 | 997 | Operating lease liabilities - noncurrent | 1,020 | 997 | ||||||||||
Other noncurrent obligations | Other noncurrent obligations | 7,140 | 6,555 | Other noncurrent obligations | 7,259 | 6,555 | ||||||||||
Total other noncurrent liabilities | Total other noncurrent liabilities | 13,401 | 13,327 | Total other noncurrent liabilities | 13,368 | 13,327 | ||||||||||
Stockholders’ Equity | Stockholders’ Equity | Stockholders’ Equity | ||||||||||||||
Common stock (authorized 5,000,000,000 shares of $0.01 par value each; issued 2023: 775,474,359 shares; 2022: 771,678,525 shares) | 8 | 8 | ||||||||||||||
Common stock (authorized 5,000,000,000 shares of $0.01 par value each; issued 2023: 775,630,092 shares; 2022: 771,678,525 shares) | Common stock (authorized 5,000,000,000 shares of $0.01 par value each; issued 2023: 775,630,092 shares; 2022: 771,678,525 shares) | 8 | 8 | |||||||||||||
Additional paid-in capital | Additional paid-in capital | 8,661 | 8,540 | Additional paid-in capital | 8,722 | 8,540 | ||||||||||
Retained earnings | Retained earnings | 22,570 | 23,180 | Retained earnings | 22,376 | 23,180 | ||||||||||
Accumulated other comprehensive loss | Accumulated other comprehensive loss | (7,067) | (7,139) | Accumulated other comprehensive loss | (7,261) | (7,139) | ||||||||||
Treasury stock at cost (2023: 72,399,802 shares; 2022: 66,798,605 shares) | (4,175) | (3,871) | ||||||||||||||
Treasury stock at cost (2023: 74,233,086 shares; 2022: 66,798,605 shares) | Treasury stock at cost (2023: 74,233,086 shares; 2022: 66,798,605 shares) | (4,278) | (3,871) | |||||||||||||
Dow Inc.’s stockholders’ equity | Dow Inc.’s stockholders’ equity | 19,997 | 20,718 | Dow Inc.’s stockholders’ equity | 19,567 | 20,718 | ||||||||||
Noncontrolling interests | Noncontrolling interests | 512 | 529 | Noncontrolling interests | 513 | 529 | ||||||||||
Total equity | Total equity | 20,509 | 21,247 | Total equity | 20,080 | 21,247 | ||||||||||
Total Liabilities and Equity | Total Liabilities and Equity | $ | 58,294 | $ | 60,603 | Total Liabilities and Equity | $ | 58,288 | $ | 60,603 |
In millions (Unaudited) | In millions (Unaudited) | Six Months Ended | In millions (Unaudited) | Nine Months Ended | ||||||||||||
Jun 30, 2023 | Jun 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | |||||||||||||
Operating Activities | Operating Activities | Operating Activities | ||||||||||||||
Net income | Net income | $ | 428 | $ | 3,233 | Net income | $ | 755 | $ | 3,993 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | Depreciation and amortization | 1,297 | 1,436 | Depreciation and amortization | 1,954 | 2,104 | ||||||||||
Provision (credit) for deferred income tax | Provision (credit) for deferred income tax | (589) | 348 | Provision (credit) for deferred income tax | (817) | 124 | ||||||||||
Earnings of nonconsolidated affiliates less than dividends received | Earnings of nonconsolidated affiliates less than dividends received | 267 | 289 | Earnings of nonconsolidated affiliates less than dividends received | 300 | 517 | ||||||||||
Net periodic pension benefit cost (credit) | Net periodic pension benefit cost (credit) | (46) | 14 | Net periodic pension benefit cost (credit) | (69) | 19 | ||||||||||
Pension contributions | Pension contributions | (76) | (89) | Pension contributions | (111) | (156) | ||||||||||
Net (gain) loss on sales of assets, businesses and investments | (51) | 6 | ||||||||||||||
Net gain on sales of assets, businesses and investments | Net gain on sales of assets, businesses and investments | (49) | (11) | |||||||||||||
Restructuring and asset related charges - net | Restructuring and asset related charges - net | 549 | 186 | Restructuring and asset related charges - net | 549 | 186 | ||||||||||
Other net loss | Other net loss | 492 | 92 | Other net loss | 588 | 159 | ||||||||||
Changes in assets and liabilities, net of effects of acquired and divested companies: | Changes in assets and liabilities, net of effects of acquired and divested companies: | Changes in assets and liabilities, net of effects of acquired and divested companies: | ||||||||||||||
Accounts and notes receivable | Accounts and notes receivable | 156 | (767) | Accounts and notes receivable | 365 | 323 | ||||||||||
Inventories | Inventories | 501 | (908) | Inventories | 777 | (254) | ||||||||||
Accounts payable | Accounts payable | (986) | 69 | Accounts payable | (859) | (860) | ||||||||||
Other assets and liabilities, net | Other assets and liabilities, net | (64) | (441) | Other assets and liabilities, net | 153 | (736) | ||||||||||
Cash provided by operating activities - continuing operations | Cash provided by operating activities - continuing operations | 1,878 | 3,468 | Cash provided by operating activities - continuing operations | 3,536 | 5,408 | ||||||||||
Cash provided by (used for) operating activities - discontinued operations | Cash provided by (used for) operating activities - discontinued operations | 4 | (11) | Cash provided by (used for) operating activities - discontinued operations | 4 | (11) | ||||||||||
Cash provided by operating activities | Cash provided by operating activities | 1,882 | 3,457 | Cash provided by operating activities | 3,540 | 5,397 | ||||||||||
Investing Activities | Investing Activities | Investing Activities | ||||||||||||||
Capital expenditures | Capital expenditures | (1,001) | (772) | Capital expenditures | (1,598) | (1,224) | ||||||||||
Investment in gas field developments | Investment in gas field developments | (124) | (80) | Investment in gas field developments | (175) | (134) | ||||||||||
Purchases of previously leased assets | Purchases of previously leased assets | (3) | (3) | Purchases of previously leased assets | (5) | (5) | ||||||||||
Proceeds from sales of property, businesses and consolidated companies, net of cash divested | Proceeds from sales of property, businesses and consolidated companies, net of cash divested | 59 | 5 | Proceeds from sales of property, businesses and consolidated companies, net of cash divested | 66 | 16 | ||||||||||
Acquisitions of property and businesses, net of cash acquired | Acquisitions of property and businesses, net of cash acquired | (54) | — | Acquisitions of property and businesses, net of cash acquired | (103) | (54) | ||||||||||
Investments in and loans to nonconsolidated affiliates | Investments in and loans to nonconsolidated affiliates | (2) | (33) | Investments in and loans to nonconsolidated affiliates | (4) | (69) | ||||||||||
Distributions and loan repayments from nonconsolidated affiliates | Distributions and loan repayments from nonconsolidated affiliates | 1 | 10 | Distributions and loan repayments from nonconsolidated affiliates | 2 | 10 | ||||||||||
Proceeds from sales of ownership interests in nonconsolidated affiliates | Proceeds from sales of ownership interests in nonconsolidated affiliates | 63 | 11 | Proceeds from sales of ownership interests in nonconsolidated affiliates | 63 | 11 | ||||||||||
Purchases of investments | Purchases of investments | (821) | (278) | Purchases of investments | (1,291) | (445) | ||||||||||
Proceeds from sales and maturities of investments | Proceeds from sales and maturities of investments | 1,083 | 418 | Proceeds from sales and maturities of investments | 1,244 | 596 | ||||||||||
Other investing activities, net | Other investing activities, net | (35) | (41) | Other investing activities, net | (45) | (41) | ||||||||||
Cash used for investing activities | Cash used for investing activities | (834) | (763) | Cash used for investing activities | (1,846) | (1,339) | ||||||||||
Financing Activities | Financing Activities | Financing Activities | ||||||||||||||
Changes in short-term notes payable | Changes in short-term notes payable | (255) | 180 | Changes in short-term notes payable | (122) | 72 | ||||||||||
Payments on short-term debt greater than three months | Payments on short-term debt greater than three months | — | (14) | Payments on short-term debt greater than three months | — | (14) | ||||||||||
Proceeds from issuance of long-term debt | Proceeds from issuance of long-term debt | 55 | 49 | Proceeds from issuance of long-term debt | 76 | 82 | ||||||||||
Payments on long-term debt | Payments on long-term debt | (320) | (927) | Payments on long-term debt | (355) | (957) | ||||||||||
Collections on securitization programs | Collections on securitization programs | 8 | — | |||||||||||||
Purchases of treasury stock | Purchases of treasury stock | (375) | (1,400) | Purchases of treasury stock | (500) | (2,200) | ||||||||||
Proceeds from issuance of stock | Proceeds from issuance of stock | 55 | 97 | Proceeds from issuance of stock | 63 | 99 | ||||||||||
Transaction financing, debt issuance and other costs | Transaction financing, debt issuance and other costs | (1) | (7) | Transaction financing, debt issuance and other costs | (1) | (8) | ||||||||||
Employee taxes paid for share-based payment arrangements | Employee taxes paid for share-based payment arrangements | (41) | (34) | Employee taxes paid for share-based payment arrangements | (41) | (34) | ||||||||||
Distributions to noncontrolling interests | Distributions to noncontrolling interests | (36) | (22) | Distributions to noncontrolling interests | (51) | (42) | ||||||||||
Dividends paid to stockholders | Dividends paid to stockholders | (989) | (1,018) | Dividends paid to stockholders | (1,481) | (1,511) | ||||||||||
Cash used for financing activities | Cash used for financing activities | (1,907) | (3,096) | Cash used for financing activities | (2,404) | (4,513) | ||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | Effect of exchange rate changes on cash, cash equivalents and restricted cash | (98) | (162) | Effect of exchange rate changes on cash, cash equivalents and restricted cash | (130) | (261) | ||||||||||
Summary | Summary | Summary | ||||||||||||||
Decrease in cash, cash equivalents and restricted cash | Decrease in cash, cash equivalents and restricted cash | (957) | (564) | Decrease in cash, cash equivalents and restricted cash | (840) | (716) | ||||||||||
Cash, cash equivalents and restricted cash at beginning of period | Cash, cash equivalents and restricted cash at beginning of period | 3,940 | 3,033 | Cash, cash equivalents and restricted cash at beginning of period | 3,940 | 3,033 | ||||||||||
Cash, cash equivalents and restricted cash at end of period | Cash, cash equivalents and restricted cash at end of period | $ | 2,983 | $ | 2,469 | Cash, cash equivalents and restricted cash at end of period | $ | 3,100 | $ | 2,317 | ||||||
Less: Restricted cash and cash equivalents, included in "Other current assets" | Less: Restricted cash and cash equivalents, included in "Other current assets" | 59 | 102 | Less: Restricted cash and cash equivalents, included in "Other current assets" | 20 | 101 | ||||||||||
Cash and cash equivalents at end of period | Cash and cash equivalents at end of period | $ | 2,924 | $ | 2,367 | Cash and cash equivalents at end of period | $ | 3,080 | $ | 2,216 |
Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
In millions, except per share amounts (Unaudited) | In millions, except per share amounts (Unaudited) | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | In millions, except per share amounts (Unaudited) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||
Common Stock | Common Stock | Common Stock | ||||||||||||||||||||||||||
Balance at beginning and end of period | Balance at beginning and end of period | $ | 8 | $ | 8 | $ | 8 | $ | 8 | Balance at beginning and end of period | $ | 8 | $ | 8 | $ | 8 | $ | 8 | ||||||||||
Additional Paid-in Capital | Additional Paid-in Capital | Additional Paid-in Capital | ||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | 8,607 | 8,217 | 8,540 | 8,151 | Balance at beginning of period | 8,661 | 8,343 | 8,540 | 8,151 | ||||||||||||||||||
Common stock issued/sold | Common stock issued/sold | — | 62 | 55 | 97 | Common stock issued/sold | 8 | 2 | 63 | 99 | ||||||||||||||||||
Stock-based compensation and allocation of ESOP shares | Stock-based compensation and allocation of ESOP shares | 84 | 84 | 140 | 119 | Stock-based compensation and allocation of ESOP shares | 77 | 79 | 217 | 198 | ||||||||||||||||||
Treasury stock issuances - compensation and benefit plans | Treasury stock issuances - compensation and benefit plans | (30) | (20) | (74) | (24) | Treasury stock issuances - compensation and benefit plans | (24) | (28) | (98) | (52) | ||||||||||||||||||
Balance at end of period | Balance at end of period | 8,661 | 8,343 | 8,661 | 8,343 | Balance at end of period | 8,722 | 8,396 | 8,722 | 8,396 | ||||||||||||||||||
Retained Earnings | Retained Earnings | Retained Earnings | ||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | 22,584 | 21,672 | 23,180 | 20,623 | Balance at beginning of period | 22,570 | 22,827 | 23,180 | 20,623 | ||||||||||||||||||
Net income available for Dow Inc. common stockholders | Net income available for Dow Inc. common stockholders | 485 | 1,661 | 392 | 3,230 | Net income available for Dow Inc. common stockholders | 302 | 739 | 694 | 3,969 | ||||||||||||||||||
Dividends to stockholders | Dividends to stockholders | (493) | (505) | (989) | (1,018) | Dividends to stockholders | (492) | (493) | (1,481) | (1,511) | ||||||||||||||||||
Other | Other | (6) | (1) | (13) | (8) | Other | (4) | (5) | (17) | (13) | ||||||||||||||||||
Balance at end of period | Balance at end of period | 22,570 | 22,827 | 22,570 | 22,827 | Balance at end of period | 22,376 | 23,068 | 22,376 | 23,068 | ||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | (7,065) | (8,796) | (7,139) | (8,977) | Balance at beginning of period | (7,067) | (9,204) | (7,139) | (8,977) | ||||||||||||||||||
Other comprehensive income (loss) | (2) | (408) | 72 | (227) | ||||||||||||||||||||||||
Other comprehensive loss | Other comprehensive loss | (194) | (378) | (122) | (605) | |||||||||||||||||||||||
Balance at end of period | Balance at end of period | (7,067) | (9,204) | (7,067) | (9,204) | Balance at end of period | (7,261) | (9,582) | (7,261) | (9,582) | ||||||||||||||||||
Unearned ESOP Shares | Unearned ESOP Shares | Unearned ESOP Shares | ||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | — | — | — | (15) | Balance at beginning of period | — | — | — | (15) | ||||||||||||||||||
Allocation of ESOP shares | Allocation of ESOP shares | — | — | — | 15 | Allocation of ESOP shares | — | — | — | 15 | ||||||||||||||||||
Balance at end of period | Balance at end of period | — | — | — | — | Balance at end of period | — | — | — | — | ||||||||||||||||||
Treasury Stock | Treasury Stock | Treasury Stock | ||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | (3,953) | (2,221) | (3,871) | (1,625) | Balance at beginning of period | (4,175) | (3,001) | (3,871) | (1,625) | ||||||||||||||||||
Treasury stock purchases | Treasury stock purchases | (252) | (800) | (378) | (1,400) | Treasury stock purchases | (127) | (800) | (505) | (2,200) | ||||||||||||||||||
Treasury stock issuances - compensation and benefit plans | Treasury stock issuances - compensation and benefit plans | 30 | 20 | 74 | 24 | Treasury stock issuances - compensation and benefit plans | 24 | 28 | 98 | 52 | ||||||||||||||||||
Balance at end of period | Balance at end of period | (4,175) | (3,001) | (4,175) | (3,001) | Balance at end of period | (4,278) | (3,773) | (4,278) | (3,773) | ||||||||||||||||||
Dow Inc.'s stockholders' equity | Dow Inc.'s stockholders' equity | 19,997 | 18,973 | 19,997 | 18,973 | Dow Inc.'s stockholders' equity | 19,567 | 18,117 | 19,567 | 18,117 | ||||||||||||||||||
Noncontrolling Interests | Noncontrolling Interests | 512 | 534 | 512 | 534 | Noncontrolling Interests | 513 | 512 | 513 | 512 | ||||||||||||||||||
Total Equity | Total Equity | $ | 20,509 | $ | 19,507 | $ | 20,509 | $ | 19,507 | Total Equity | $ | 20,080 | $ | 18,629 | $ | 20,080 | $ | 18,629 | ||||||||||
Dividends declared per share of common stock | Dividends declared per share of common stock | $ | 0.70 | $ | 0.70 | $ | 1.40 | $ | 1.40 | Dividends declared per share of common stock | $ | 0.70 | $ | 0.70 | $ | 2.10 | $ | 2.10 |
Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
In millions (Unaudited) | In millions (Unaudited) | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | In millions (Unaudited) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||
Net sales | Net sales | $ | 11,420 | $ | 15,664 | $ | 23,271 | $ | 30,928 | Net sales | $ | 10,730 | $ | 14,115 | $ | 34,001 | $ | 45,043 | ||||||||||
Cost of sales | Cost of sales | 9,874 | 12,899 | 20,502 | 25,297 | Cost of sales | 9,591 | 12,379 | 30,093 | 37,676 | ||||||||||||||||||
Research and development expenses | Research and development expenses | 205 | 217 | 419 | 435 | Research and development expenses | 197 | 191 | 616 | 626 | ||||||||||||||||||
Selling, general and administrative expenses | Selling, general and administrative expenses | 408 | 434 | 836 | 932 | Selling, general and administrative expenses | 380 | 357 | 1,216 | 1,289 | ||||||||||||||||||
Amortization of intangibles | Amortization of intangibles | 81 | 85 | 162 | 173 | Amortization of intangibles | 81 | 83 | 243 | 256 | ||||||||||||||||||
Restructuring and asset related charges - net | Restructuring and asset related charges - net | 8 | — | 549 | 186 | Restructuring and asset related charges - net | — | — | 549 | 186 | ||||||||||||||||||
Equity in earnings (losses) of nonconsolidated affiliates | Equity in earnings (losses) of nonconsolidated affiliates | (57) | 195 | (105) | 369 | Equity in earnings (losses) of nonconsolidated affiliates | (7) | (58) | (112) | 311 | ||||||||||||||||||
Sundry income (expense) - net | Sundry income (expense) - net | 29 | 78 | 98 | 214 | Sundry income (expense) - net | 71 | 73 | 169 | 287 | ||||||||||||||||||
Interest income | Interest income | 69 | 38 | 147 | 66 | Interest income | 47 | 45 | 194 | 111 | ||||||||||||||||||
Interest expense and amortization of debt discount | Interest expense and amortization of debt discount | 172 | 165 | 357 | 332 | Interest expense and amortization of debt discount | 192 | 155 | 549 | 487 | ||||||||||||||||||
Income before income taxes | Income before income taxes | 713 | 2,175 | 586 | 4,222 | Income before income taxes | 400 | 1,010 | 986 | 5,232 | ||||||||||||||||||
Provision for income taxes | Provision for income taxes | 210 | 488 | 163 | 991 | Provision for income taxes | 90 | 242 | 253 | 1,233 | ||||||||||||||||||
Net income | Net income | 503 | 1,687 | 423 | 3,231 | Net income | 310 | 768 | 733 | 3,999 | ||||||||||||||||||
Net income attributable to noncontrolling interests | Net income attributable to noncontrolling interests | 16 | 20 | 36 | 3 | Net income attributable to noncontrolling interests | 25 | 21 | 61 | 24 | ||||||||||||||||||
Net income available for The Dow Chemical Company common stockholder | Net income available for The Dow Chemical Company common stockholder | $ | 487 | $ | 1,667 | $ | 387 | $ | 3,228 | Net income available for The Dow Chemical Company common stockholder | $ | 285 | $ | 747 | $ | 672 | $ | 3,975 | ||||||||||
Depreciation | Depreciation | $ | 484 | $ | 486 | $ | 959 | $ | 977 | Depreciation | $ | 484 | $ | 482 | $ | 1,443 | $ | 1,459 | ||||||||||
Capital expenditures | Capital expenditures | $ | 561 | $ | 457 | $ | 1,001 | $ | 772 | Capital expenditures | $ | 597 | $ | 452 | $ | 1,598 | $ | 1,224 |
Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
In millions (Unaudited) | In millions (Unaudited) | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | In millions (Unaudited) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||
Net income | Net income | $ | 503 | $ | 1,687 | $ | 423 | $ | 3,231 | Net income | $ | 310 | $ | 768 | $ | 733 | $ | 3,999 | ||||||||||
Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | ||||||||||||||||||||||||||
Unrealized gains (losses) on investments | Unrealized gains (losses) on investments | 61 | (153) | 92 | (249) | Unrealized gains (losses) on investments | (20) | (122) | 72 | (371) | ||||||||||||||||||
Cumulative translation adjustments | Cumulative translation adjustments | (103) | (514) | (2) | (678) | Cumulative translation adjustments | (147) | (403) | (149) | (1,081) | ||||||||||||||||||
Pension and other postretirement benefit plans | Pension and other postretirement benefit plans | (4) | 122 | 2 | 231 | Pension and other postretirement benefit plans | (2) | 125 | — | 356 | ||||||||||||||||||
Derivative instruments | Derivative instruments | 44 | 137 | (20) | 469 | Derivative instruments | (25) | 22 | (45) | 491 | ||||||||||||||||||
Total other comprehensive income (loss) | (2) | (408) | 72 | (227) | ||||||||||||||||||||||||
Total other comprehensive loss | Total other comprehensive loss | (194) | (378) | (122) | (605) | |||||||||||||||||||||||
Comprehensive income | Comprehensive income | 501 | 1,279 | 495 | 3,004 | Comprehensive income | 116 | 390 | 611 | 3,394 | ||||||||||||||||||
Comprehensive income attributable to noncontrolling interests, net of tax | Comprehensive income attributable to noncontrolling interests, net of tax | 16 | 20 | 36 | 3 | Comprehensive income attributable to noncontrolling interests, net of tax | 25 | 21 | 61 | 24 | ||||||||||||||||||
Comprehensive income attributable to The Dow Chemical Company | Comprehensive income attributable to The Dow Chemical Company | $ | 485 | $ | 1,259 | $ | 459 | $ | 3,001 | Comprehensive income attributable to The Dow Chemical Company | $ | 91 | $ | 369 | $ | 550 | $ | 3,370 |
In millions, except share amounts (Unaudited) | In millions, except share amounts (Unaudited) | Jun 30, 2023 | Dec 31, 2022 | In millions, except share amounts (Unaudited) | Sep 30, 2023 | Dec 31, 2022 | ||||||||||
Assets | Assets | Assets | ||||||||||||||
Current Assets | Current Assets | Current Assets | ||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 2,924 | $ | 3,886 | Cash and cash equivalents | $ | 3,080 | $ | 3,886 | ||||||
Accounts and notes receivable: | Accounts and notes receivable: | Accounts and notes receivable: | ||||||||||||||
Trade (net of allowance for doubtful receivables - 2023: $105; 2022: $110) | 5,539 | 5,611 | ||||||||||||||
Trade (net of allowance for doubtful receivables - 2023: $80; 2022: $110) | Trade (net of allowance for doubtful receivables - 2023: $80; 2022: $110) | 5,343 | 5,611 | |||||||||||||
Other | Other | 2,111 | 2,211 | Other | 2,050 | 2,211 | ||||||||||
Inventories | Inventories | 6,487 | 6,988 | Inventories | 6,211 | 6,988 | ||||||||||
Other current assets | Other current assets | 1,451 | 1,815 | Other current assets | 1,578 | 1,815 | ||||||||||
Total current assets | Total current assets | 18,512 | 20,511 | Total current assets | 18,262 | 20,511 | ||||||||||
Investments | Investments | Investments | ||||||||||||||
Investment in nonconsolidated affiliates | Investment in nonconsolidated affiliates | 1,335 | 1,589 | Investment in nonconsolidated affiliates | 1,289 | 1,589 | ||||||||||
Other investments (investments carried at fair value - 2023: $1,802; 2022: $1,757) | 2,823 | 2,793 | ||||||||||||||
Other investments (investments carried at fair value - 2023: $1,929; 2022: $1,757) | Other investments (investments carried at fair value - 2023: $1,929; 2022: $1,757) | 2,904 | 2,793 | |||||||||||||
Noncurrent receivables | Noncurrent receivables | 534 | 650 | Noncurrent receivables | 517 | 650 | ||||||||||
Total investments | Total investments | 4,692 | 5,032 | Total investments | 4,710 | 5,032 | ||||||||||
Property | Property | Property | ||||||||||||||
Property | Property | 59,145 | 58,055 | Property | 59,525 | 58,055 | ||||||||||
Less accumulated depreciation | Less accumulated depreciation | 38,743 | 37,613 | Less accumulated depreciation | 38,965 | 37,613 | ||||||||||
Net property | Net property | 20,402 | 20,442 | Net property | 20,560 | 20,442 | ||||||||||
Other Assets | Other Assets | Other Assets | ||||||||||||||
Goodwill | Goodwill | 8,615 | 8,644 | Goodwill | 8,580 | 8,644 | ||||||||||
Other intangible assets (net of accumulated amortization - 2023: $5,201; 2022: $5,022) | 2,231 | 2,442 | ||||||||||||||
Other intangible assets (net of accumulated amortization - 2023: $5,279; 2022: $5,022) | Other intangible assets (net of accumulated amortization - 2023: $5,279; 2022: $5,022) | 2,132 | 2,442 | |||||||||||||
Operating lease right-of-use assets | Operating lease right-of-use assets | 1,297 | 1,227 | Operating lease right-of-use assets | 1,288 | 1,227 | ||||||||||
Deferred income tax assets | Deferred income tax assets | 1,075 | 960 | Deferred income tax assets | 1,248 | 960 | ||||||||||
Deferred charges and other assets | Deferred charges and other assets | 1,406 | 1,363 | Deferred charges and other assets | 1,434 | 1,363 | ||||||||||
Total other assets | Total other assets | 14,624 | 14,636 | Total other assets | 14,682 | 14,636 | ||||||||||
Total Assets | Total Assets | $ | 58,230 | $ | 60,621 | Total Assets | $ | 58,214 | $ | 60,621 | ||||||
Liabilities and Equity | Liabilities and Equity | Liabilities and Equity | ||||||||||||||
Current Liabilities | Current Liabilities | Current Liabilities | ||||||||||||||
Notes payable | Notes payable | $ | 102 | $ | 362 | Notes payable | $ | 223 | $ | 362 | ||||||
Long-term debt due within one year | Long-term debt due within one year | 107 | 362 | Long-term debt due within one year | 110 | 362 | ||||||||||
Accounts payable: | Accounts payable: | Accounts payable: | ||||||||||||||
Trade | Trade | 4,286 | 4,940 | Trade | 4,293 | 4,940 | ||||||||||
Other | Other | 1,879 | 2,349 | Other | 2,044 | 2,349 | ||||||||||
Operating lease liabilities - current | Operating lease liabilities - current | 317 | 287 | Operating lease liabilities - current | 325 | 287 | ||||||||||
Income taxes payable | Income taxes payable | 339 | 334 | Income taxes payable | 393 | 334 | ||||||||||
Accrued and other current liabilities | Accrued and other current liabilities | 2,472 | 2,613 | Accrued and other current liabilities | 2,730 | 2,613 | ||||||||||
Total current liabilities | Total current liabilities | 9,502 | 11,247 | Total current liabilities | 10,118 | 11,247 | ||||||||||
Long-Term Debt | Long-Term Debt | 14,735 | 14,698 | Long-Term Debt | 14,592 | 14,698 | ||||||||||
Other Noncurrent Liabilities | Other Noncurrent Liabilities | Other Noncurrent Liabilities | ||||||||||||||
Deferred income tax liabilities | Deferred income tax liabilities | 671 | 1,110 | Deferred income tax liabilities | 668 | 1,110 | ||||||||||
Pension and other postretirement benefits - noncurrent | Pension and other postretirement benefits - noncurrent | 3,735 | 3,808 | Pension and other postretirement benefits - noncurrent | 3,617 | 3,808 | ||||||||||
Asbestos-related liabilities - noncurrent | Asbestos-related liabilities - noncurrent | 819 | 857 | Asbestos-related liabilities - noncurrent | 804 | 857 | ||||||||||
Operating lease liabilities - noncurrent | Operating lease liabilities - noncurrent | 1,036 | 997 | Operating lease liabilities - noncurrent | 1,020 | 997 | ||||||||||
Other noncurrent obligations | Other noncurrent obligations | 6,996 | 6,415 | Other noncurrent obligations | 7,117 | 6,415 | ||||||||||
Total other noncurrent liabilities | Total other noncurrent liabilities | 13,257 | 13,187 | Total other noncurrent liabilities | 13,226 | 13,187 | ||||||||||
Stockholder's Equity | Stockholder's Equity | Stockholder's Equity | ||||||||||||||
Common stock (authorized and issued 100 shares of $0.01 par value each) | Common stock (authorized and issued 100 shares of $0.01 par value each) | — | — | Common stock (authorized and issued 100 shares of $0.01 par value each) | — | — | ||||||||||
Additional paid-in capital | Additional paid-in capital | 8,822 | 8,627 | Additional paid-in capital | 8,907 | 8,627 | ||||||||||
Retained earnings | Retained earnings | 18,469 | 19,472 | Retained earnings | 18,119 | 19,472 | ||||||||||
Accumulated other comprehensive loss | Accumulated other comprehensive loss | (7,067) | (7,139) | Accumulated other comprehensive loss | (7,261) | (7,139) | ||||||||||
The Dow Chemical Company’s stockholder's equity | The Dow Chemical Company’s stockholder's equity | 20,224 | 20,960 | The Dow Chemical Company’s stockholder's equity | 19,765 | 20,960 | ||||||||||
Noncontrolling interests | Noncontrolling interests | 512 | 529 | Noncontrolling interests | 513 | 529 | ||||||||||
Total equity | Total equity | 20,736 | 21,489 | Total equity | 20,278 | 21,489 | ||||||||||
Total Liabilities and Equity | Total Liabilities and Equity | $ | 58,230 | $ | 60,621 | Total Liabilities and Equity | $ | 58,214 | $ | 60,621 |
In millions (Unaudited) | In millions (Unaudited) | Six Months Ended | In millions (Unaudited) | Nine Months Ended | ||||||||||||
Jun 30, 2023 | Jun 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | |||||||||||||
Operating Activities | Operating Activities | Operating Activities | ||||||||||||||
Net income | Net income | $ | 423 | $ | 3,231 | Net income | $ | 733 | $ | 3,999 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | Depreciation and amortization | 1,297 | 1,436 | Depreciation and amortization | 1,954 | 2,104 | ||||||||||
Provision (credit) for deferred income tax | Provision (credit) for deferred income tax | (589) | 348 | Provision (credit) for deferred income tax | (817) | 125 | ||||||||||
Earnings of nonconsolidated affiliates less than dividends received | Earnings of nonconsolidated affiliates less than dividends received | 267 | 289 | Earnings of nonconsolidated affiliates less than dividends received | 300 | 517 | ||||||||||
Net periodic pension benefit cost (credit) | Net periodic pension benefit cost (credit) | (46) | 14 | Net periodic pension benefit cost (credit) | (69) | 19 | ||||||||||
Pension contributions | Pension contributions | (76) | (89) | Pension contributions | (111) | (156) | ||||||||||
Net (gain) loss on sales of assets, businesses and investments | (51) | 6 | ||||||||||||||
Net gain on sales of assets, businesses and investments | Net gain on sales of assets, businesses and investments | (49) | (11) | |||||||||||||
Restructuring and asset related charges - net | Restructuring and asset related charges - net | 549 | 186 | Restructuring and asset related charges - net | 549 | 186 | ||||||||||
Other net loss | Other net loss | 493 | 97 | Other net loss | 589 | 167 | ||||||||||
Changes in assets and liabilities, net of effects of acquired and divested companies: | Changes in assets and liabilities, net of effects of acquired and divested companies: | Changes in assets and liabilities, net of effects of acquired and divested companies: | ||||||||||||||
Accounts and notes receivable | Accounts and notes receivable | 156 | (767) | Accounts and notes receivable | 365 | 323 | ||||||||||
Inventories | Inventories | 501 | (908) | Inventories | 777 | (254) | ||||||||||
Accounts payable | Accounts payable | (986) | 69 | Accounts payable | (859) | (860) | ||||||||||
Other assets and liabilities, net | Other assets and liabilities, net | (42) | (419) | Other assets and liabilities, net | 205 | (718) | ||||||||||
Cash provided by operating activities | Cash provided by operating activities | 1,896 | 3,493 | Cash provided by operating activities | 3,567 | 5,441 | ||||||||||
Investing Activities | Investing Activities | Investing Activities | ||||||||||||||
Capital expenditures | Capital expenditures | (1,001) | (772) | Capital expenditures | (1,598) | (1,224) | ||||||||||
Investment in gas field developments | Investment in gas field developments | (124) | (80) | Investment in gas field developments | (175) | (134) | ||||||||||
Purchases of previously leased assets | Purchases of previously leased assets | (3) | (3) | Purchases of previously leased assets | (5) | (5) | ||||||||||
Proceeds from sales of property, businesses and consolidated companies, net of cash divested | Proceeds from sales of property, businesses and consolidated companies, net of cash divested | 59 | 5 | Proceeds from sales of property, businesses and consolidated companies, net of cash divested | 66 | 16 | ||||||||||
Acquisitions of property and businesses, net of cash acquired | Acquisitions of property and businesses, net of cash acquired | (54) | — | Acquisitions of property and businesses, net of cash acquired | (103) | (54) | ||||||||||
Investments in and loans to nonconsolidated affiliates | Investments in and loans to nonconsolidated affiliates | (2) | (33) | Investments in and loans to nonconsolidated affiliates | (4) | (69) | ||||||||||
Distributions and loan repayments from nonconsolidated affiliates | Distributions and loan repayments from nonconsolidated affiliates | 1 | 10 | Distributions and loan repayments from nonconsolidated affiliates | 2 | 10 | ||||||||||
Proceeds from sales of ownership interests in nonconsolidated affiliates | Proceeds from sales of ownership interests in nonconsolidated affiliates | 63 | 11 | Proceeds from sales of ownership interests in nonconsolidated affiliates | 63 | 11 | ||||||||||
Purchases of investments | Purchases of investments | (821) | (278) | Purchases of investments | (1,291) | (445) | ||||||||||
Proceeds from sales and maturities of investments | Proceeds from sales and maturities of investments | 1,083 | 418 | Proceeds from sales and maturities of investments | 1,244 | 596 | ||||||||||
Other investing activities, net | Other investing activities, net | (35) | (41) | Other investing activities, net | (45) | (41) | ||||||||||
Cash used for investing activities | Cash used for investing activities | (834) | (763) | Cash used for investing activities | (1,846) | (1,339) | ||||||||||
Financing Activities | Financing Activities | Financing Activities | ||||||||||||||
Changes in short-term notes payable | Changes in short-term notes payable | (255) | 180 | Changes in short-term notes payable | (122) | 72 | ||||||||||
Payments on short-term debt greater than three months | Payments on short-term debt greater than three months | — | (14) | Payments on short-term debt greater than three months | — | (14) | ||||||||||
Proceeds from issuance of long-term debt | Proceeds from issuance of long-term debt | 55 | 49 | Proceeds from issuance of long-term debt | 76 | 82 | ||||||||||
Payments on long-term debt | Payments on long-term debt | (320) | (927) | Payments on long-term debt | (355) | (957) | ||||||||||
Collections on securitization programs | Collections on securitization programs | 8 | — | |||||||||||||
Proceeds from issuance of stock | Proceeds from issuance of stock | 55 | 97 | Proceeds from issuance of stock | 63 | 99 | ||||||||||
Transaction financing, debt issuance and other costs | Transaction financing, debt issuance and other costs | (1) | (7) | Transaction financing, debt issuance and other costs | (1) | (8) | ||||||||||
Employee taxes paid for share-based payment arrangements | Employee taxes paid for share-based payment arrangements | (41) | (34) | Employee taxes paid for share-based payment arrangements | (41) | (34) | ||||||||||
Distributions to noncontrolling interests | Distributions to noncontrolling interests | (36) | (22) | Distributions to noncontrolling interests | (51) | (42) | ||||||||||
Dividends paid to Dow Inc. | Dividends paid to Dow Inc. | (1,378) | (2,454) | Dividends paid to Dow Inc. | (2,008) | (3,755) | ||||||||||
Cash used for financing activities | Cash used for financing activities | (1,921) | (3,132) | Cash used for financing activities | (2,431) | (4,557) | ||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | Effect of exchange rate changes on cash, cash equivalents and restricted cash | (98) | (162) | Effect of exchange rate changes on cash, cash equivalents and restricted cash | (130) | (261) | ||||||||||
Summary | Summary | Summary | ||||||||||||||
Decrease in cash, cash equivalents and restricted cash | Decrease in cash, cash equivalents and restricted cash | (957) | (564) | Decrease in cash, cash equivalents and restricted cash | (840) | (716) | ||||||||||
Cash, cash equivalents and restricted cash at beginning of period | Cash, cash equivalents and restricted cash at beginning of period | 3,940 | 3,033 | Cash, cash equivalents and restricted cash at beginning of period | 3,940 | 3,033 | ||||||||||
Cash, cash equivalents and restricted cash at end of period | Cash, cash equivalents and restricted cash at end of period | $ | 2,983 | $ | 2,469 | Cash, cash equivalents and restricted cash at end of period | $ | 3,100 | $ | 2,317 | ||||||
Less: Restricted cash and cash equivalents, included in "Other current assets" | Less: Restricted cash and cash equivalents, included in "Other current assets" | 59 | 102 | Less: Restricted cash and cash equivalents, included in "Other current assets" | 20 | 101 | ||||||||||
Cash and cash equivalents at end of period | Cash and cash equivalents at end of period | $ | 2,924 | $ | 2,367 | Cash and cash equivalents at end of period | $ | 3,080 | $ | 2,216 |
Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
In millions (Unaudited) | In millions (Unaudited) | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | In millions (Unaudited) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||
Common Stock | Common Stock | Common Stock | ||||||||||||||||||||||||||
Balance at beginning and end of period | Balance at beginning and end of period | $ | — | $ | — | $ | — | $ | — | Balance at beginning and end of period | $ | — | $ | — | $ | — | $ | — | ||||||||||
Additional Paid-in Capital | Additional Paid-in Capital | Additional Paid-in Capital | ||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | 8,738 | 8,229 | 8,627 | 8,159 | Balance at beginning of period | 8,822 | 8,375 | 8,627 | 8,159 | ||||||||||||||||||
Issuance of parent company stock - Dow Inc. | Issuance of parent company stock - Dow Inc. | — | 62 | 55 | 97 | Issuance of parent company stock - Dow Inc. | 8 | 2 | 63 | 99 | ||||||||||||||||||
Stock-based compensation and allocation of ESOP shares | Stock-based compensation and allocation of ESOP shares | 84 | 84 | 140 | 119 | Stock-based compensation and allocation of ESOP shares | 77 | 79 | 217 | 198 | ||||||||||||||||||
Balance at end of period | Balance at end of period | 8,822 | 8,375 | 8,822 | 8,375 | Balance at end of period | 8,907 | 8,456 | 8,907 | 8,456 | ||||||||||||||||||
Retained Earnings | Retained Earnings | Retained Earnings | ||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | 18,746 | 19,721 | 19,472 | 19,288 | Balance at beginning of period | 18,469 | 20,049 | 19,472 | 19,288 | ||||||||||||||||||
Net income available for The Dow Chemical Company common stockholder | Net income available for The Dow Chemical Company common stockholder | 487 | 1,667 | 387 | 3,228 | Net income available for The Dow Chemical Company common stockholder | 285 | 747 | 672 | 3,975 | ||||||||||||||||||
Dividends to Dow Inc. | Dividends to Dow Inc. | (758) | (1,333) | (1,378) | (2,454) | Dividends to Dow Inc. | (630) | (1,301) | (2,008) | (3,755) | ||||||||||||||||||
Other | Other | (6) | (6) | (12) | (13) | Other | (5) | (4) | (17) | (17) | ||||||||||||||||||
Balance at end of period | Balance at end of period | 18,469 | 20,049 | 18,469 | 20,049 | Balance at end of period | 18,119 | 19,491 | 18,119 | 19,491 | ||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | (7,065) | (8,796) | (7,139) | (8,977) | Balance at beginning of period | (7,067) | (9,204) | (7,139) | (8,977) | ||||||||||||||||||
Other comprehensive income (loss) | (2) | (408) | 72 | (227) | ||||||||||||||||||||||||
Other comprehensive loss | Other comprehensive loss | (194) | (378) | (122) | (605) | |||||||||||||||||||||||
Balance at end of period | Balance at end of period | (7,067) | (9,204) | (7,067) | (9,204) | Balance at end of period | (7,261) | (9,582) | (7,261) | (9,582) | ||||||||||||||||||
Unearned ESOP Shares | Unearned ESOP Shares | Unearned ESOP Shares | ||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | — | — | — | (15) | Balance at beginning of period | — | — | — | (15) | ||||||||||||||||||
Allocation of ESOP shares | Allocation of ESOP shares | — | — | — | 15 | Allocation of ESOP shares | — | — | — | 15 | ||||||||||||||||||
Balance at end of period | Balance at end of period | — | — | — | — | Balance at end of period | — | — | — | — | ||||||||||||||||||
The Dow Chemical Company's stockholder's equity | The Dow Chemical Company's stockholder's equity | 20,224 | 19,220 | 20,224 | 19,220 | The Dow Chemical Company's stockholder's equity | 19,765 | 18,365 | 19,765 | 18,365 | ||||||||||||||||||
Noncontrolling Interests | Noncontrolling Interests | 512 | 534 | 512 | 534 | Noncontrolling Interests | 513 | 512 | 513 | 512 | ||||||||||||||||||
Total Equity | Total Equity | $ | 20,736 | $ | 19,754 | $ | 20,736 | $ | 19,754 | Total Equity | $ | 20,278 | $ | 18,877 | $ | 20,278 | $ | 18,877 |
Dow Inc. and Subsidiaries The Dow Chemical Company and Subsidiaries (Unaudited) |
Note | Note | Page | Note | Page | ||||||||||||||||||
1 | 1 | 1 | ||||||||||||||||||||
2 | 2 | 2 | ||||||||||||||||||||
3 | 3 | 3 | ||||||||||||||||||||
4 | 4 | 4 | ||||||||||||||||||||
5 | 5 | 5 | ||||||||||||||||||||
6 | 6 | 6 | ||||||||||||||||||||
7 | 7 | 7 | ||||||||||||||||||||
8 | 8 | 8 | ||||||||||||||||||||
9 | 9 | 9 | ||||||||||||||||||||
10 | 10 | 10 | ||||||||||||||||||||
11 | 11 | 11 | ||||||||||||||||||||
12 | 12 | 12 | ||||||||||||||||||||
13 | 13 | 13 | ||||||||||||||||||||
14 | 14 | 14 | ||||||||||||||||||||
15 | 15 | 15 | ||||||||||||||||||||
16 | 16 | 16 |
Net Trade Sales by Segment and Business | Net Trade Sales by Segment and Business | Three Months Ended | Six Months Ended | Net Trade Sales by Segment and Business | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | In millions | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||
Hydrocarbons & Energy | Hydrocarbons & Energy | $ | 1,672 | $ | 2,779 | $ | 3,546 | $ | 5,195 | Hydrocarbons & Energy | $ | 1,441 | $ | 2,509 | $ | 4,987 | $ | 7,704 | ||||||||||
Packaging and Specialty Plastics | Packaging and Specialty Plastics | 4,268 | 5,454 | 8,508 | 10,665 | Packaging and Specialty Plastics | 4,013 | 4,818 | 12,521 | 15,483 | ||||||||||||||||||
Packaging & Specialty Plastics | Packaging & Specialty Plastics | $ | 5,940 | $ | 8,233 | $ | 12,054 | $ | 15,860 | Packaging & Specialty Plastics | $ | 5,454 | $ | 7,327 | $ | 17,508 | $ | 23,187 | ||||||||||
Industrial Solutions | Industrial Solutions | $ | 1,084 | $ | 1,446 | $ | 2,223 | $ | 2,961 | Industrial Solutions | $ | 1,012 | $ | 1,420 | $ | 3,235 | $ | 4,381 | ||||||||||
Polyurethanes & Construction Chemicals | Polyurethanes & Construction Chemicals | 2,090 | 2,919 | 4,324 | 5,924 | Polyurethanes & Construction Chemicals | 2,019 | 2,636 | 6,343 | 8,560 | ||||||||||||||||||
Other | Other | 3 | 5 | 8 | 9 | Other | 4 | 3 | 12 | 12 | ||||||||||||||||||
Industrial Intermediates & Infrastructure | Industrial Intermediates & Infrastructure | $ | 3,177 | $ | 4,370 | $ | 6,555 | $ | 8,894 | Industrial Intermediates & Infrastructure | $ | 3,035 | $ | 4,059 | $ | 9,590 | $ | 12,953 | ||||||||||
Coatings & Performance Monomers | Coatings & Performance Monomers | $ | 875 | $ | 1,129 | $ | 1,733 | $ | 2,204 | Coatings & Performance Monomers | $ | 839 | $ | 1,052 | $ | 2,572 | $ | 3,256 | ||||||||||
Consumer Solutions | Consumer Solutions | 1,322 | 1,874 | 2,740 | 3,848 | Consumer Solutions | 1,291 | 1,602 | 4,031 | 5,450 | ||||||||||||||||||
Performance Materials & Coatings | Performance Materials & Coatings | $ | 2,197 | $ | 3,003 | $ | 4,473 | $ | 6,052 | Performance Materials & Coatings | $ | 2,130 | $ | 2,654 | $ | 6,603 | $ | 8,706 | ||||||||||
Corporate | Corporate | $ | 106 | $ | 58 | $ | 189 | $ | 122 | Corporate | $ | 111 | $ | 75 | $ | 300 | $ | 197 | ||||||||||
Total | Total | $ | 11,420 | $ | 15,664 | $ | 23,271 | $ | 30,928 | Total | $ | 10,730 | $ | 14,115 | $ | 34,001 | $ | 45,043 |
Net Trade Sales by Geographic Region | Net Trade Sales by Geographic Region | Three Months Ended | Six Months Ended | Net Trade Sales by Geographic Region | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | In millions | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||
U.S. & Canada | U.S. & Canada | $ | 4,249 | $ | 5,707 | $ | 8,699 | $ | 11,244 | U.S. & Canada | $ | 3,968 | $ | 5,334 | $ | 12,667 | $ | 16,578 | ||||||||||
EMEAI 1 | EMEAI 1 | 3,774 | 5,677 | 7,827 | 11,189 | EMEAI 1 | 3,398 | 4,634 | 11,225 | 15,823 | ||||||||||||||||||
Asia Pacific | Asia Pacific | 2,058 | 2,673 | 4,105 | 5,426 | Asia Pacific | 2,067 | 2,571 | 6,172 | 7,997 | ||||||||||||||||||
Latin America | Latin America | 1,339 | 1,607 | 2,640 | 3,069 | Latin America | 1,297 | 1,576 | 3,937 | 4,645 | ||||||||||||||||||
Total | Total | $ | 11,420 | $ | 15,664 | $ | 23,271 | $ | 30,928 | Total | $ | 10,730 | $ | 14,115 | $ | 34,001 | $ | 45,043 |
Contract Assets and Liabilities | Contract Assets and Liabilities | Balance Sheet Classification | Jun 30, 2023 | Dec 31, 2022 | Contract Assets and Liabilities | Balance Sheet Classification | Sep 30, 2023 | Dec 31, 2022 | ||||||||||||||
In millions | In millions | In millions | ||||||||||||||||||||
Accounts and notes receivable - trade | Accounts and notes receivable - trade | $ | 5,539 | $ | 5,611 | Accounts and notes receivable - trade | $ | 5,343 | $ | 5,611 | ||||||||||||
Contract assets - current | Contract assets - current | Other current assets | $ | 15 | $ | 48 | Contract assets - current | Other current assets | $ | 29 | $ | 48 | ||||||||||
Contract assets - noncurrent | Contract assets - noncurrent | Deferred charges and other assets | $ | 3 | $ | 16 | Contract assets - noncurrent | Deferred charges and other assets | $ | 4 | $ | 16 | ||||||||||
Contract liabilities - current | Contract liabilities - current | Accrued and other current liabilities | $ | 207 | $ | 275 | Contract liabilities - current | Accrued and other current liabilities | $ | 220 | $ | 275 | ||||||||||
Contract liabilities - noncurrent | Contract liabilities - noncurrent | Other noncurrent obligations | $ | 1,725 | $ | 1,725 | Contract liabilities - noncurrent | Other noncurrent obligations | $ | 1,703 | $ | 1,725 |
2023 Restructuring Program | 2023 Restructuring Program | Severance and Related Benefit Costs | Asset Write-downs and Write-offs | Total | 2023 Restructuring Program | Severance and Related Benefit Costs | Asset Write-downs and Write-offs | Total | ||||||||||||||||||||
In millions | In millions | Total | Severance and Related Benefit Costs | |||||||||||||||||||||||||
Packaging & Specialty Plastics | Packaging & Specialty Plastics | $ | — | $ | 1 | $ | 1 | $ | — | $ | 1 | $ | 1 | |||||||||||||||
Industrial Intermediates & Infrastructure | Industrial Intermediates & Infrastructure | — | 40 | 40 | Industrial Intermediates & Infrastructure | — | 40 | 40 | ||||||||||||||||||||
Performance Materials & Coatings | Performance Materials & Coatings | — | 49 | 49 | Performance Materials & Coatings | — | 49 | 49 | ||||||||||||||||||||
Corporate | Corporate | 344 | 107 | 451 | Corporate | 344 | 107 | 451 | ||||||||||||||||||||
Total restructuring charges | Total restructuring charges | $ | 344 | $ | 197 | $ | 541 | Total restructuring charges | $ | 344 | $ | 197 | $ | 541 | ||||||||||||||
Charges against the reserve | Charges against the reserve | — | (197) | (197) | Charges against the reserve | — | (197) | (197) | ||||||||||||||||||||
Cash payments | Cash payments | (11) | — | (11) | Cash payments | (11) | — | (11) | ||||||||||||||||||||
Reserve balance at Mar 31, 2023 | Reserve balance at Mar 31, 2023 | $ | 333 | $ | — | $ | 333 | Reserve balance at Mar 31, 2023 | $ | 333 | $ | — | $ | 333 | ||||||||||||||
Industrial Intermediates & Infrastructure | Industrial Intermediates & Infrastructure | $ | — | $ | 8 | $ | 8 | Industrial Intermediates & Infrastructure | $ | — | $ | 8 | $ | 8 | ||||||||||||||
Total restructuring charges | Total restructuring charges | $ | — | $ | 8 | $ | 8 | Total restructuring charges | $ | — | $ | 8 | $ | 8 | ||||||||||||||
Charges against the reserve | Charges against the reserve | — | (8) | (8) | Charges against the reserve | — | (8) | (8) | ||||||||||||||||||||
Cash payments | Cash payments | (60) | — | (60) | Cash payments | (60) | — | (60) | ||||||||||||||||||||
Reserve balance at Jun 30, 2023 | Reserve balance at Jun 30, 2023 | $ | 273 | $ | — | $ | 273 | Reserve balance at Jun 30, 2023 | $ | 273 | $ | — | $ | 273 | ||||||||||||||
Cash payments | Cash payments | (110) | — | (110) | ||||||||||||||||||||||||
Reserve balance at Sep 30, 2023 | Reserve balance at Sep 30, 2023 | $ | 163 | $ | — | $ | 163 |
Dow Inc. Sundry Income (Expense) – Net | Dow Inc. Sundry Income (Expense) – Net | Three Months Ended | Six Months Ended | Dow Inc. Sundry Income (Expense) – Net | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | In millions | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||
Non-operating pension and other postretirement benefit plan net credits 1 | Non-operating pension and other postretirement benefit plan net credits 1 | $ | 97 | $ | 89 | $ | 193 | $ | 178 | Non-operating pension and other postretirement benefit plan net credits 1 | $ | 97 | $ | 89 | $ | 290 | $ | 267 | ||||||||||
Foreign exchange losses 2 | Foreign exchange losses 2 | (95) | (17) | (197) | (15) | Foreign exchange losses 2 | (39) | (31) | (236) | (46) | ||||||||||||||||||
Gain on sales of other assets and investments 3 | Gain on sales of other assets and investments 3 | 9 | 12 | 74 | 43 | Gain on sales of other assets and investments 3 | — | 10 | 74 | 53 | ||||||||||||||||||
Asset impairments and related costs 4 | Asset impairments and related costs 4 | — | — | (18) | — | Asset impairments and related costs 4 | — | — | (18) | — | ||||||||||||||||||
Indemnification and other transaction related costs 5 | Indemnification and other transaction related costs 5 | (13) | (8) | (4) | 4 | Indemnification and other transaction related costs 5 | 21 | (7) | 17 | (3) | ||||||||||||||||||
Loss on early extinguishment of debt | Loss on early extinguishment of debt | — | (8) | — | (8) | Loss on early extinguishment of debt | — | — | — | (8) | ||||||||||||||||||
Other - net | Other - net | 33 | 7 | 62 | 21 | Other - net | 13 | 8 | 75 | 29 | ||||||||||||||||||
Total sundry income (expense) – net | Total sundry income (expense) – net | $ | 31 | $ | 75 | $ | 110 | $ | 223 | Total sundry income (expense) – net | $ | 92 | $ | 69 | $ | 202 | $ | 292 |
Net Income for Earnings Per Share Calculations | Net Income for Earnings Per Share Calculations | Three Months Ended | Six Months Ended | Net Income for Earnings Per Share Calculations | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
In millions | In millions | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | In millions | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | |||||||||||||||||||
In millions | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | |||||||||||||||||||||||||
Net income | Net income | $ | 501 | $ | 1,681 | $ | 428 | $ | 3,233 | Net income | $ | 327 | $ | 760 | $ | 755 | $ | 3,993 | |||||||||||
Net income attributable to noncontrolling interests | Net income attributable to noncontrolling interests | 16 | 20 | 36 | 3 | Net income attributable to noncontrolling interests | 25 | 21 | 61 | 24 | |||||||||||||||||||
Net income attributable to participating securities 1 | Net income attributable to participating securities 1 | 3 | 9 | 6 | 17 | Net income attributable to participating securities 1 | 2 | 4 | 8 | 21 | |||||||||||||||||||
Net income attributable to common stockholders | Net income attributable to common stockholders | $ | 482 | $ | 1,652 | $ | 386 | $ | 3,213 | Net income attributable to common stockholders | $ | 300 | $ | 735 | $ | 686 | $ | 3,948 |
Earnings Per Share - Basic and Diluted | Earnings Per Share - Basic and Diluted | Three Months Ended | Six Months Ended | Earnings Per Share - Basic and Diluted | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
Dollars per share | Dollars per share | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | Dollars per share | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | |||||||||||||||||||
Dollars per share | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | |||||||||||||||||||||||||
Earnings per common share - basic | Earnings per common share - basic | $ | 0.68 | $ | 2.28 | $ | 0.55 | $ | 4.40 | Earnings per common share - basic | $ | 0.43 | $ | 1.03 | $ | 0.97 | $ | 5.45 | |||||||||||
Earnings per common share - diluted | Earnings per common share - diluted | $ | 0.68 | $ | 2.26 | $ | 0.54 | $ | 4.37 | Earnings per common share - diluted | $ | 0.42 | $ | 1.02 | $ | 0.97 | $ | 5.41 |
Share Count Information | Share Count Information | Three Months Ended | Six Months Ended | Share Count Information | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
Shares in millions | Shares in millions | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | Shares in millions | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | |||||||||||||||||||
Shares in millions | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | |||||||||||||||||||||||||
Weighted-average common shares outstanding - basic | Weighted-average common shares outstanding - basic | 707.0 | 725.7 | 707.6 | 730.2 | Weighted-average common shares outstanding - basic | 704.0 | 714.3 | 706.4 | 724.9 | |||||||||||||||||||
Plus dilutive effect of equity compensation plans | Plus dilutive effect of equity compensation plans | 2.9 | 5.8 | 3.1 | 5.4 | Plus dilutive effect of equity compensation plans | 3.5 | 3.8 | 3.3 | 4.9 | |||||||||||||||||||
Weighted-average common shares outstanding - diluted | Weighted-average common shares outstanding - diluted | 709.9 | 731.5 | 710.7 | 735.6 | Weighted-average common shares outstanding - diluted | 707.5 | 718.1 | 709.7 | 729.8 | |||||||||||||||||||
Stock options and restricted stock units excluded from EPS calculations 2 | Stock options and restricted stock units excluded from EPS calculations 2 | 12.3 | 4.0 | 10.0 | 5.4 | Stock options and restricted stock units excluded from EPS calculations 2 | 9.3 | 9.7 | 9.8 | 6.8 |
Inventories | Inventories | Jun 30, 2023 | Dec 31, 2022 | Inventories | Sep 30, 2023 | Dec 31, 2022 | ||||||||||
In millions | In millions | In millions | ||||||||||||||
Finished goods | Finished goods | $ | 3,741 | $ | 4,150 | Finished goods | $ | 3,540 | $ | 4,150 | ||||||
Work in process | Work in process | 1,262 | 1,476 | Work in process | 1,255 | 1,476 | ||||||||||
Raw materials | Raw materials | 815 | 954 | Raw materials | 772 | 954 | ||||||||||
Supplies | Supplies | 935 | 892 | Supplies | 945 | 892 | ||||||||||
Total | Total | $ | 6,753 | $ | 7,472 | Total | $ | 6,512 | $ | 7,472 | ||||||
Adjustment of inventories to the LIFO basis | Adjustment of inventories to the LIFO basis | (266) | (484) | Adjustment of inventories to the LIFO basis | (301) | (484) | ||||||||||
Total inventories | Total inventories | $ | 6,487 | $ | 6,988 | Total inventories | $ | 6,211 | $ | 6,988 |
Lease Cost | Lease Cost | Three Months Ended | Six Months Ended | Lease Cost | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | In millions | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||
Operating lease cost | Operating lease cost | $ | 103 | $ | 99 | $ | 201 | $ | 196 | Operating lease cost | $ | 118 | $ | 98 | $ | 319 | $ | 294 | ||||||||||
Finance lease cost | Finance lease cost | Finance lease cost | ||||||||||||||||||||||||||
Amortization of right-of-use assets - finance | Amortization of right-of-use assets - finance | $ | 25 | $ | 26 | $ | 51 | $ | 52 | Amortization of right-of-use assets - finance | $ | 26 | $ | 28 | $ | 77 | $ | 80 | ||||||||||
Interest on lease liabilities - finance | Interest on lease liabilities - finance | 8 | 9 | 16 | 17 | Interest on lease liabilities - finance | 8 | 8 | 24 | 25 | ||||||||||||||||||
Total finance lease cost | Total finance lease cost | $ | 33 | $ | 35 | $ | 67 | $ | 69 | Total finance lease cost | $ | 34 | $ | 36 | $ | 101 | $ | 105 | ||||||||||
Short-term lease cost | Short-term lease cost | 66 | 66 | 132 | 125 | Short-term lease cost | 62 | 69 | 194 | 194 | ||||||||||||||||||
Variable lease cost | Variable lease cost | 261 | 133 | 442 | 248 | Variable lease cost | 241 | 164 | 683 | 412 | ||||||||||||||||||
Sublease income | Sublease income | (2) | (3) | (4) | (6) | Sublease income | (2) | (2) | (6) | (8) | ||||||||||||||||||
Total lease cost | Total lease cost | $ | 461 | $ | 330 | $ | 838 | $ | 632 | Total lease cost | $ | 453 | $ | 365 | $ | 1,291 | $ | 997 |
Other Lease Information | Other Lease Information | Six Months Ended | Other Lease Information | Nine Months Ended | ||||||||||||
In millions | In millions | Jun 30, 2023 | Jun 30, 2022 | In millions | Sep 30, 2023 | Sep 30, 2022 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | Cash paid for amounts included in the measurement of lease liabilities: | Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||
Operating cash flows for operating leases | Operating cash flows for operating leases | $ | 205 | $ | 196 | Operating cash flows for operating leases | $ | 320 | $ | 289 | ||||||
Operating cash flows for finance leases | Operating cash flows for finance leases | $ | 16 | $ | 17 | Operating cash flows for finance leases | $ | 24 | $ | 25 | ||||||
Financing cash flows for finance leases | Financing cash flows for finance leases | $ | 56 | $ | 53 | Financing cash flows for finance leases | $ | 83 | $ | 79 | ||||||
Right-of-use assets obtained in exchange for lease obligations: | Right-of-use assets obtained in exchange for lease obligations: | Right-of-use assets obtained in exchange for lease obligations: | ||||||||||||||
Operating leases | Operating leases | $ | 199 | $ | 37 | Operating leases | $ | 283 | $ | 93 | ||||||
Finance leases | Finance leases | $ | 10 | $ | 27 | Finance leases | $ | 43 | $ | 44 |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | Three Months Ended | Six Months Ended | Accumulated Other Comprehensive Loss | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | In millions | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||
Unrealized Gains (Losses) on Investments | Unrealized Gains (Losses) on Investments | Unrealized Gains (Losses) on Investments | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | (222) | $ | (37) | $ | (253) | $ | 59 | Beginning balance | $ | (161) | $ | (190) | $ | (253) | $ | 59 | ||||||||||
Unrealized gains (losses) on investments | Unrealized gains (losses) on investments | 58 | (203) | 88 | (324) | Unrealized gains (losses) on investments | (33) | (61) | 55 | (385) | ||||||||||||||||||
Tax (expense) benefit | Tax (expense) benefit | 39 | 43 | 39 | 67 | Tax (expense) benefit | 9 | (55) | 48 | 12 | ||||||||||||||||||
Net unrealized gains (losses) on investments | Net unrealized gains (losses) on investments | 97 | (160) | 127 | (257) | Net unrealized gains (losses) on investments | (24) | (116) | 103 | (373) | ||||||||||||||||||
(Gains) losses reclassified from AOCL to net income 1 | (Gains) losses reclassified from AOCL to net income 1 | (46) | 9 | (45) | 10 | (Gains) losses reclassified from AOCL to net income 1 | 4 | (8) | (41) | 2 | ||||||||||||||||||
Tax expense (benefit) 2 | Tax expense (benefit) 2 | 10 | (2) | 10 | (2) | Tax expense (benefit) 2 | — | 2 | 10 | — | ||||||||||||||||||
Net (gains) losses reclassified from AOCL to net income | Net (gains) losses reclassified from AOCL to net income | (36) | 7 | (35) | 8 | Net (gains) losses reclassified from AOCL to net income | 4 | (6) | (31) | 2 | ||||||||||||||||||
Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | 61 | (153) | 92 | (249) | Other comprehensive income (loss), net of tax | (20) | (122) | 72 | (371) | ||||||||||||||||||
Ending balance | Ending balance | $ | (161) | $ | (190) | $ | (161) | $ | (190) | Ending balance | $ | (181) | $ | (312) | $ | (181) | $ | (312) | ||||||||||
Cumulative Translation Adjustment | Cumulative Translation Adjustment | Cumulative Translation Adjustment | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | (1,833) | $ | (1,519) | $ | (1,934) | $ | (1,355) | Beginning balance | $ | (1,936) | $ | (2,033) | $ | (1,934) | $ | (1,355) | ||||||||||
Gains (losses) on foreign currency translation | Gains (losses) on foreign currency translation | (84) | (500) | — | (665) | Gains (losses) on foreign currency translation | (122) | (369) | (122) | (1,034) | ||||||||||||||||||
Tax (expense) benefit | Tax (expense) benefit | (12) | (3) | (10) | 10 | Tax (expense) benefit | (6) | (17) | (16) | (7) | ||||||||||||||||||
Net gains (losses) on foreign currency translation | Net gains (losses) on foreign currency translation | (96) | (503) | (10) | (655) | Net gains (losses) on foreign currency translation | (128) | (386) | (138) | (1,041) | ||||||||||||||||||
(Gains) losses reclassified from AOCL to net income 3 | (Gains) losses reclassified from AOCL to net income 3 | (7) | (11) | 8 | (23) | (Gains) losses reclassified from AOCL to net income 3 | (19) | (17) | (11) | (40) | ||||||||||||||||||
Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | (103) | (514) | (2) | (678) | Other comprehensive income (loss), net of tax | (147) | (403) | (149) | (1,081) | ||||||||||||||||||
Ending balance | Ending balance | $ | (1,936) | $ | (2,033) | $ | (1,936) | $ | (2,033) | Ending balance | $ | (2,083) | $ | (2,436) | $ | (2,083) | $ | (2,436) | ||||||||||
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | (4,871) | $ | (7,225) | $ | (4,877) | $ | (7,334) | Beginning balance | $ | (4,875) | $ | (7,103) | $ | (4,877) | $ | (7,334) | ||||||||||
Gains (losses) arising during the period | Gains (losses) arising during the period | (5) | 3 | (3) | 5 | Gains (losses) arising during the period | (4) | 6 | (7) | 11 | ||||||||||||||||||
Amortization of net loss and prior service credits reclassified from AOCL to net income 4 | Amortization of net loss and prior service credits reclassified from AOCL to net income 4 | 2 | 156 | 5 | 313 | Amortization of net loss and prior service credits reclassified from AOCL to net income 4 | 3 | 155 | 8 | 468 | ||||||||||||||||||
Tax expense (benefit) 2 | Tax expense (benefit) 2 | (1) | (37) | — | (87) | Tax expense (benefit) 2 | (1) | (36) | (1) | (123) | ||||||||||||||||||
Net loss and prior service credits reclassified from AOCL to net income | Net loss and prior service credits reclassified from AOCL to net income | 1 | 119 | 5 | 226 | Net loss and prior service credits reclassified from AOCL to net income | 2 | 119 | 7 | 345 | ||||||||||||||||||
Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | (4) | 122 | 2 | 231 | Other comprehensive income (loss), net of tax | (2) | 125 | — | 356 | ||||||||||||||||||
Ending balance | Ending balance | $ | (4,875) | $ | (7,103) | $ | (4,875) | $ | (7,103) | Ending balance | $ | (4,877) | $ | (6,978) | $ | (4,877) | $ | (6,978) | ||||||||||
Derivative Instruments | Derivative Instruments | Derivative Instruments | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | (139) | $ | (15) | $ | (75) | $ | (347) | Beginning balance | $ | (95) | $ | 122 | $ | (75) | $ | (347) | ||||||||||
Gains (losses) on derivative instruments | Gains (losses) on derivative instruments | (1) | 260 | (184) | 680 | Gains (losses) on derivative instruments | (58) | 122 | (242) | 802 | ||||||||||||||||||
Tax (expense) benefit | Tax (expense) benefit | 3 | (27) | 36 | (83) | Tax (expense) benefit | (2) | (31) | 34 | (114) | ||||||||||||||||||
Net gains (losses) on derivative instruments | Net gains (losses) on derivative instruments | 2 | 233 | (148) | 597 | Net gains (losses) on derivative instruments | (60) | 91 | (208) | 688 | ||||||||||||||||||
(Gains) losses reclassified from AOCL to net income 5 | (Gains) losses reclassified from AOCL to net income 5 | 55 | (108) | 164 | (142) | (Gains) losses reclassified from AOCL to net income 5 | 45 | (80) | 209 | (222) | ||||||||||||||||||
Tax expense (benefit) 2 | Tax expense (benefit) 2 | (13) | 12 | (36) | 14 | Tax expense (benefit) 2 | (10) | 11 | (46) | 25 | ||||||||||||||||||
Net (gains) losses reclassified from AOCL to net income | Net (gains) losses reclassified from AOCL to net income | 42 | (96) | 128 | (128) | Net (gains) losses reclassified from AOCL to net income | 35 | (69) | 163 | (197) | ||||||||||||||||||
Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | 44 | 137 | (20) | 469 | Other comprehensive income (loss), net of tax | (25) | 22 | (45) | 491 | ||||||||||||||||||
Ending balance | Ending balance | $ | (95) | $ | 122 | $ | (95) | $ | 122 | Ending balance | $ | (120) | $ | 144 | $ | (120) | $ | 144 | ||||||||||
Total AOCL ending balance | Total AOCL ending balance | $ | (7,067) | $ | (9,204) | $ | (7,067) | $ | (9,204) | Total AOCL ending balance | $ | (7,261) | $ | (9,582) | $ | (7,261) | $ | (9,582) |
Noncontrolling Interests | Noncontrolling Interests | Three Months Ended | Six Months Ended | Noncontrolling Interests | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | In millions | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | $ | 534 | $ | 545 | $ | 529 | $ | 574 | Balance at beginning of period | $ | 512 | $ | 534 | $ | 529 | $ | 574 | ||||||||||
Net income attributable to noncontrolling interests 1 | Net income attributable to noncontrolling interests 1 | 16 | 20 | 36 | 3 | Net income attributable to noncontrolling interests 1 | 25 | 21 | 61 | 24 | ||||||||||||||||||
Distributions to noncontrolling interests 2 | Distributions to noncontrolling interests 2 | (15) | (14) | (28) | (15) | Distributions to noncontrolling interests 2 | (15) | (20) | (43) | (35) | ||||||||||||||||||
Cumulative translation adjustments | Cumulative translation adjustments | (22) | (16) | (25) | (27) | Cumulative translation adjustments | (9) | (24) | (34) | (51) | ||||||||||||||||||
Other | Other | (1) | (1) | — | (1) | Other | — | 1 | — | — | ||||||||||||||||||
Balance at end of period | Balance at end of period | $ | 512 | $ | 534 | $ | 512 | $ | 534 | Balance at end of period | $ | 513 | $ | 512 | $ | 513 | $ | 512 |
Net Periodic Benefit Cost (Credit) for All Significant Plans | Net Periodic Benefit Cost (Credit) for All Significant Plans | Three Months Ended | Six Months Ended | Net Periodic Benefit Cost (Credit) for All Significant Plans | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | In millions | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||
Defined Benefit Pension Plans | Defined Benefit Pension Plans | Defined Benefit Pension Plans | ||||||||||||||||||||||||||
Service cost | Service cost | $ | 71 | $ | 99 | $ | 141 | $ | 198 | Service cost | $ | 71 | $ | 97 | $ | 212 | $ | 295 | ||||||||||
Interest cost | Interest cost | 279 | 171 | 558 | 342 | Interest cost | 280 | 170 | 838 | 512 | ||||||||||||||||||
Expected return on plan assets | Expected return on plan assets | (390) | (423) | (779) | (847) | Expected return on plan assets | (391) | (420) | (1,170) | (1,267) | ||||||||||||||||||
Amortization of prior service credit | Amortization of prior service credit | (6) | (5) | (13) | (11) | Amortization of prior service credit | (7) | (5) | (20) | (16) | ||||||||||||||||||
Amortization of net loss | Amortization of net loss | 23 | 165 | 47 | 332 | Amortization of net loss | 24 | 163 | 71 | 495 | ||||||||||||||||||
Net periodic benefit cost (credit) | Net periodic benefit cost (credit) | $ | (23) | $ | 7 | $ | (46) | $ | 14 | Net periodic benefit cost (credit) | $ | (23) | $ | 5 | $ | (69) | $ | 19 | ||||||||||
Other Postretirement Benefit Plans | Other Postretirement Benefit Plans | Other Postretirement Benefit Plans | ||||||||||||||||||||||||||
Service cost | Service cost | $ | 1 | $ | 2 | $ | 2 | $ | 3 | Service cost | $ | 1 | $ | 1 | $ | 3 | $ | 4 | ||||||||||
Interest cost | Interest cost | 12 | 7 | 23 | 14 | Interest cost | 11 | 6 | 34 | 20 | ||||||||||||||||||
Amortization of net gain | Amortization of net gain | (15) | (4) | (29) | (8) | Amortization of net gain | (14) | (3) | (43) | (11) | ||||||||||||||||||
Net periodic benefit cost (credit) | Net periodic benefit cost (credit) | $ | (2) | $ | 5 | $ | (4) | $ | 9 | Net periodic benefit cost (credit) | $ | (2) | $ | 4 | $ | (6) | $ | 13 |
Investing Results | Investing Results | Six Months Ended | Investing Results | Nine Months Ended | ||||||||||||
In millions | In millions | Jun 30, 2023 | Jun 30, 2022 | In millions | Sep 30, 2023 | Sep 30, 2022 | ||||||||||
Proceeds from sales of available-for-sale securities | Proceeds from sales of available-for-sale securities | $ | 274 | $ | 295 | Proceeds from sales of available-for-sale securities | $ | 397 | $ | 449 | ||||||
Gross realized gains | Gross realized gains | $ | 58 | $ | 20 | Gross realized gains | $ | 59 | $ | 40 | ||||||
Gross realized losses | Gross realized losses | $ | (13) | $ | (30) | Gross realized losses | $ | (18) | $ | (42) |
Contractual Maturities of Debt Securities at Jun 30, 2023 | Cost | Fair Value | ||||||||||||||
Contractual Maturities of Debt Securities at Sep 30, 2023 | Contractual Maturities of Debt Securities at Sep 30, 2023 | Cost | Fair Value | |||||||||||||
In millions | In millions | Cost | Fair Value | In millions | ||||||||||||
Within one year | Within one year | Within one year | $ | 63 | $ | 59 | ||||||||||
One to five years | One to five years | 897 | 823 | One to five years | 1,117 | 1,032 | ||||||||||
Six to ten years | Six to ten years | 536 | 467 | Six to ten years | 509 | 437 | ||||||||||
After ten years | After ten years | 515 | 418 | After ten years | 513 | 386 | ||||||||||
Total | Total | $ | 2,025 | $ | 1,782 | Total | $ | 2,202 | $ | 1,914 |
Investments in Equity Securities | Investments in Equity Securities | Jun 30, 2023 | Dec 31, 2022 | Investments in Equity Securities | Sep 30, 2023 | Dec 31, 2022 | ||||||||||
In millions | In millions | In millions | ||||||||||||||
Readily determinable fair value | Readily determinable fair value | $ | 20 | $ | 10 | Readily determinable fair value | $ | 15 | $ | 10 | ||||||
Not readily determinable fair value | Not readily determinable fair value | $ | 182 | $ | 186 | Not readily determinable fair value | $ | 177 | $ | 186 |
Notional Amounts 1 | Notional Amounts 1 | Jun 30, 2023 | Dec 31, 2022 | Notional Amounts 1 | Sep 30, 2023 | Dec 31, 2022 | ||||||||||
In millions | In millions | In millions | ||||||||||||||
Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | ||||||||||||||
Interest rate contracts | Interest rate contracts | $ | 2,000 | $ | 1,500 | Interest rate contracts | $ | 3,000 | $ | 1,500 | ||||||
Foreign currency contracts | Foreign currency contracts | $ | 9,934 | $ | 2,408 | Foreign currency contracts | $ | 8,683 | $ | 2,408 | ||||||
Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | ||||||||||||||
Interest rate contracts | Interest rate contracts | $ | 72 | $ | 3 | Interest rate contracts | $ | 140 | $ | 3 | ||||||
Foreign currency contracts | Foreign currency contracts | $ | 14,211 | $ | 8,837 | Foreign currency contracts | $ | 12,921 | $ | 8,837 |
Commodity Notionals 1 | Commodity Notionals 1 | Jun 30, 2023 | Dec 31, 2022 | Notional Volume Unit | Commodity Notionals 1 | Sep 30, 2023 | Dec 31, 2022 | Notional Volume Unit | ||||||||||||||
Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | ||||||||||||||||||||
Hydrocarbon derivatives | Hydrocarbon derivatives | 2.1 | 19.2 | million barrels of oil equivalent | Hydrocarbon derivatives | 2.1 | 19.2 | million barrels of oil equivalent | ||||||||||||||
Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Hydrocarbon derivatives | Hydrocarbon derivatives | 1.1 | — | million barrels of oil equivalent | Hydrocarbon derivatives | 0.7 | — | million barrels of oil equivalent |
Maturity Dates of Derivatives Designated as Hedging Instruments | Year | ||||
Interest rate contracts | |||||
Foreign currency contracts | 2024 | ||||
Commodity contracts | 2026 |
Fair Value of Derivative Instruments | Fair Value of Derivative Instruments | Jun 30, 2023 | Dec 31, 2022 | Fair Value of Derivative Instruments | Sep 30, 2023 | Dec 31, 2022 | ||||||||||||||||||||||||||||||||||||||||
In millions | In millions | Gross | Counterparty and Cash Collateral Netting 1 | Net 2 | Gross | Counterparty and Cash Collateral Netting 1 | Net 2 | In millions | Gross | Counterparty and Cash Collateral Netting 1 | Net 2 | Gross | Counterparty and Cash Collateral Netting 1 | Net 2 | ||||||||||||||||||||||||||||||||
Asset derivatives | Asset derivatives | Asset derivatives | ||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts 3 | Interest rate contracts 3 | $ | — | $ | — | $ | — | $ | 351 | $ | (246) | $ | 105 | Interest rate contracts 3 | $ | 8 | $ | (8) | $ | — | $ | 351 | $ | (246) | $ | 105 | ||||||||||||||||||||
Interest rate contracts 4 | Interest rate contracts 4 | 121 | (121) | — | — | — | — | Interest rate contracts 4 | 61 | (61) | — | — | — | — | ||||||||||||||||||||||||||||||||
Foreign currency contracts 3 | Foreign currency contracts 3 | 114 | (70) | 44 | 58 | (39) | 19 | Foreign currency contracts 3 | 190 | (117) | 73 | 58 | (39) | 19 | ||||||||||||||||||||||||||||||||
Commodity contracts 3 | Commodity contracts 3 | 77 | (48) | 29 | 199 | (148) | 51 | Commodity contracts 3 | 54 | (37) | 17 | 199 | (148) | 51 | ||||||||||||||||||||||||||||||||
Commodity contracts 4 | Commodity contracts 4 | 11 | (8) | 3 | — | — | — | Commodity contracts 4 | 5 | (4) | 1 | — | — | — | ||||||||||||||||||||||||||||||||
Total | Total | $ | 323 | $ | (247) | $ | 76 | $ | 608 | $ | (433) | $ | 175 | Total | $ | 318 | $ | (227) | $ | 91 | $ | 608 | $ | (433) | $ | 175 | ||||||||||||||||||||
Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts 3 | Interest rate contracts 3 | $ | 2 | $ | (1) | $ | 1 | $ | — | $ | — | $ | — | Interest rate contracts 3 | $ | 2 | $ | (2) | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||
Interest rate contracts 4 | Interest rate contracts 4 | 1 | (1) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Foreign currency contracts 3 | Foreign currency contracts 3 | 65 | (16) | 49 | 146 | (50) | 96 | Foreign currency contracts 3 | 15 | (12) | 3 | 146 | (50) | 96 | ||||||||||||||||||||||||||||||||
Commodity contracts 3 | Commodity contracts 3 | 10 | (4) | 6 | 22 | (1) | 21 | Commodity contracts 3 | 73 | (44) | 29 | 22 | (1) | 21 | ||||||||||||||||||||||||||||||||
Commodity contracts 4 | Commodity contracts 4 | 6 | (1) | 5 | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 77 | $ | (21) | $ | 56 | $ | 168 | $ | (51) | $ | 117 | Total | $ | 97 | $ | (60) | $ | 37 | $ | 168 | $ | (51) | $ | 117 | ||||||||||||||||||||
Total asset derivatives | Total asset derivatives | $ | 400 | $ | (268) | $ | 132 | $ | 776 | $ | (484) | $ | 292 | Total asset derivatives | $ | 415 | $ | (287) | $ | 128 | $ | 776 | $ | (484) | $ | 292 | ||||||||||||||||||||
Liability derivatives | Liability derivatives | Liability derivatives | ||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts 5 | Interest rate contracts 5 | $ | — | $ | — | $ | — | $ | 246 | $ | (246) | $ | — | Interest rate contracts 5 | $ | 49 | $ | (8) | $ | 41 | $ | 246 | $ | (246) | $ | — | ||||||||||||||||||||
Interest rate contracts 6 | Interest rate contracts 6 | 128 | (121) | 7 | — | — | — | Interest rate contracts 6 | 238 | (61) | 177 | — | — | — | ||||||||||||||||||||||||||||||||
Foreign currency contracts 5 | Foreign currency contracts 5 | 70 | (70) | — | 58 | (39) | 19 | Foreign currency contracts 5 | 117 | (117) | — | 58 | (39) | 19 | ||||||||||||||||||||||||||||||||
Commodity contracts 5 | Commodity contracts 5 | 96 | (69) | 27 | 258 | (198) | 60 | Commodity contracts 5 | 61 | (44) | 17 | 258 | (198) | 60 | ||||||||||||||||||||||||||||||||
Commodity contracts 6 | Commodity contracts 6 | 8 | (8) | — | — | — | — | Commodity contracts 6 | 4 | (4) | — | — | — | — | ||||||||||||||||||||||||||||||||
Total | Total | $ | 302 | $ | (268) | $ | 34 | $ | 562 | $ | (483) | $ | 79 | Total | $ | 469 | $ | (234) | $ | 235 | $ | 562 | $ | (483) | $ | 79 | ||||||||||||||||||||
Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts 5 | Interest rate contracts 5 | $ | 2 | $ | (1) | $ | 1 | $ | — | $ | — | $ | — | Interest rate contracts 5 | $ | 5 | $ | (2) | $ | 3 | $ | — | $ | — | $ | — | ||||||||||||||||||||
Interest rate contracts 6 | Interest rate contracts 6 | 1 | (1) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Foreign currency contracts 5 | Foreign currency contracts 5 | 25 | (16) | 9 | 61 | (50) | 11 | Foreign currency contracts 5 | 118 | (12) | 106 | 61 | (50) | 11 | ||||||||||||||||||||||||||||||||
Commodity contracts 5 | Commodity contracts 5 | 7 | (5) | 2 | 12 | (11) | 1 | Commodity contracts 5 | 72 | (44) | 28 | 12 | (11) | 1 | ||||||||||||||||||||||||||||||||
Commodity contracts 6 | Commodity contracts 6 | 4 | (1) | 3 | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 34 | $ | (22) | $ | 12 | $ | 73 | $ | (61) | $ | 12 | Total | $ | 200 | $ | (60) | $ | 140 | $ | 73 | $ | (61) | $ | 12 | ||||||||||||||||||||
Total liability derivatives | Total liability derivatives | $ | 336 | $ | (290) | $ | 46 | $ | 635 | $ | (544) | $ | 91 | Total liability derivatives | $ | 669 | $ | (294) | $ | 375 | $ | 635 | $ | (544) | $ | 91 |
Effect of Derivative Instruments | Effect of Derivative Instruments | Gain (loss) recognized in OCI 1 | Gain (loss) recognized in income 2 | Effect of Derivative Instruments | Gain (loss) recognized in OCI 1 | Gain (loss) recognized in income 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | In millions | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | In millions | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value hedges: | Fair value hedges: | Fair value hedges: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excluded components 3, 4 | Excluded components 3, 4 | $ | (4) | $ | — | $ | (5) | $ | — | $ | — | $ | — | $ | — | $ | — | Excluded components 3, 4 | $ | (88) | $ | — | $ | (93) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
Cash flow hedges: | Cash flow hedges: | Cash flow hedges: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts 4 | Interest rate contracts 4 | — | 108 | 5 | 207 | (2) | (2) | (4) | (5) | Interest rate contracts 4 | — | 24 | 5 | 231 | (3) | (3) | (7) | (8) | ||||||||||||||||||||||||||||||||||||||||
Foreign currency contracts 5 | Foreign currency contracts 5 | 1 | 4 | 1 | 6 | (1) | 3 | 1 | 6 | Foreign currency contracts 5 | 5 | 2 | 6 | 8 | — | 4 | 1 | 10 | ||||||||||||||||||||||||||||||||||||||||
Commodity contracts 5 | Commodity contracts 5 | (6) | 80 | (149) | 287 | (52) | 107 | (161) | 141 | Commodity contracts 5 | 4 | 23 | (145) | 310 | (42) | 79 | (203) | 220 | ||||||||||||||||||||||||||||||||||||||||
Net foreign investment hedges: | Net foreign investment hedges: | Net foreign investment hedges: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency contracts | Foreign currency contracts | 12 | 49 | 3 | 47 | — | — | — | — | Foreign currency contracts | 69 | 88 | 72 | 135 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Excluded components 3, 6 | Excluded components 3, 6 | 28 | 5 | 31 | 34 | 7 | 11 | 7 | 23 | Excluded components 3, 6 | 4 | 25 | 35 | 59 | 19 | 15 | 26 | 38 | ||||||||||||||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | Total derivatives designated as hedging instruments | $ | 31 | $ | 246 | $ | (114) | $ | 581 | $ | (48) | $ | 119 | $ | (157) | $ | 165 | Total derivatives designated as hedging instruments | $ | (6) | $ | 162 | $ | (120) | $ | 743 | $ | (26) | $ | 95 | $ | (183) | $ | 260 | ||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts 4 | Interest rate contracts 4 | $ | — | $ | — | $ | — | $ | — | $ | 1 | $ | — | $ | 1 | $ | (1) | Interest rate contracts 4 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1 | $ | (1) | ||||||||||||||||||||||||
Foreign currency contracts 6 | Foreign currency contracts 6 | — | — | — | — | (29) | (191) | 6 | (276) | Foreign currency contracts 6 | — | — | — | — | (101) | (255) | (95) | (531) | ||||||||||||||||||||||||||||||||||||||||
Commodity contracts 5 | Commodity contracts 5 | — | — | — | — | 4 | 7 | 4 | 29 | Commodity contracts 5 | — | — | — | — | (1) | 10 | 3 | 39 | ||||||||||||||||||||||||||||||||||||||||
Total return swap 5 | Total return swap 5 | — | — | — | — | 10 | — | 3 | — | Total return swap 5 | — | — | — | — | (16) | — | (13) | — | ||||||||||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | Total derivatives not designated as hedging instruments | $ | — | $ | — | $ | — | $ | — | $ | (14) | $ | (184) | $ | 14 | $ | (248) | Total derivatives not designated as hedging instruments | $ | — | $ | — | $ | — | $ | — | $ | (118) | $ | (245) | $ | (104) | $ | (493) | ||||||||||||||||||||||||
Total derivatives | Total derivatives | $ | 31 | $ | 246 | $ | (114) | $ | 581 | $ | (62) | $ | (65) | $ | (143) | $ | (83) | Total derivatives | $ | (6) | $ | 162 | $ | (120) | $ | 743 | $ | (144) | $ | (150) | $ | (287) | $ | (233) |
Expected Reclassifications from AOCL within the next 12 months | |||||
In millions | |||||
Cash flow hedges: | |||||
Interest rate contracts | $ | (7) | |||
Commodity contracts | $ | ||||
Foreign currency contracts | $ | ||||
Net foreign investment hedges: | |||||
Excluded components | $ |
Fair Value Measurements on a Recurring Basis | Fair Value Measurements on a Recurring Basis | Jun 30, 2023 | Dec 31, 2022 | Fair Value Measurements on a Recurring Basis | Sep 30, 2023 | Dec 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | In millions | Fair Value Level | Cost | Gain | Loss | Fair Value | Cost | Gain | Loss | Fair Value | In millions | Fair Value Level | Cost | Gain | Loss | Fair Value | Cost | Gain | Loss | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||
Assets at fair value: | Assets at fair value: | Assets at fair value: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents: | Cash equivalents: | Cash equivalents: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Held-to-maturity securities 1 | Held-to-maturity securities 1 | Level 2 | $ | 283 | $ | — | $ | — | $ | 283 | $ | 872 | $ | — | $ | — | $ | 872 | Held-to-maturity securities 1 | Level 2 | $ | 699 | $ | — | $ | — | $ | 699 | $ | 872 | $ | — | $ | — | $ | 872 | ||||||||||||||||||||||||||||
Money market funds | Money market funds | Level 2 | 1,598 | — | — | 1,598 | 355 | — | — | 355 | Money market funds | Level 2 | 1,209 | — | — | 1,209 | 355 | — | — | 355 | ||||||||||||||||||||||||||||||||||||||||||||
Marketable securities 2 | Marketable securities 2 | Level 2 | 701 | 15 | — | 716 | 927 | 12 | — | 939 | Marketable securities 2 | Level 2 | 886 | 28 | — | 914 | 927 | 12 | — | 939 | ||||||||||||||||||||||||||||||||||||||||||||
Nonconsolidated affiliates 3 | Nonconsolidated affiliates 3 | Level 3 | 7 | 7 | Nonconsolidated affiliates 3 | Level 3 | 7 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments: | Other investments: | Other investments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities: 4 | Debt securities: 4 | Debt securities: 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government debt 5 | Government debt 5 | Level 2 | 799 | 2 | (125) | 676 | 754 | 1 | (133) | 622 | Government debt 5 | Level 2 | 763 | — | (146) | 617 | 754 | 1 | (133) | 622 | ||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | Corporate bonds | Level 1 | 24 | — | (4) | 20 | 38 | — | (3) | 35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | Corporate bonds | Level 1 | 33 | — | (3) | 30 | 38 | — | (3) | 35 | Corporate bonds | Level 2 | 1,215 | 13 | (151) | 1,077 | 1,236 | 10 | (156) | 1,090 | ||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | Corporate bonds | Level 2 | 1,193 | 12 | (129) | 1,076 | 1,236 | 10 | (156) | 1,090 | Corporate bonds | Level 3 | 200 | — | — | 200 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Equity securities 4, 6 | Equity securities 4, 6 | Level 1 | 5 | 15 | — | 20 | 5 | 5 | — | 10 | Equity securities 4, 6 | Level 1 | 4 | 11 | — | 15 | 5 | 5 | — | 10 | ||||||||||||||||||||||||||||||||||||||||||||
Derivatives relating to: 7 | Derivatives relating to: 7 | Derivatives relating to: 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rates | Interest rates | Level 2 | — | 123 | — | 123 | — | 351 | — | 351 | Interest rates | Level 2 | — | 72 | — | 72 | — | 351 | — | 351 | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency | Foreign currency | Level 2 | — | 179 | — | 179 | — | 204 | — | 204 | Foreign currency | Level 2 | — | 205 | — | 205 | — | 204 | — | 204 | ||||||||||||||||||||||||||||||||||||||||||||
Commodities | Commodities | Level 1 | — | 33 | — | 33 | — | 63 | — | 63 | Commodities | Level 1 | — | 12 | — | 12 | — | 63 | — | 63 | ||||||||||||||||||||||||||||||||||||||||||||
Commodities | Commodities | Level 2 | — | 65 | — | 65 | — | 158 | — | 158 | Commodities | Level 2 | — | 126 | — | 126 | — | 158 | — | 158 | ||||||||||||||||||||||||||||||||||||||||||||
Total assets at fair value | Total assets at fair value | $ | 4,806 | $ | 4,706 | Total assets at fair value | $ | 5,173 | $ | 4,706 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities at fair value: | Liabilities at fair value: | Liabilities at fair value: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt including debt due within one year 8 | Long-term debt including debt due within one year 8 | Level 2 | $ | (14,842) | $ | 1,532 | $ | (556) | $ | (13,866) | $ | (15,060) | $ | 1,683 | $ | (498) | $ | (13,875) | Long-term debt including debt due within one year 8 | Level 2 | $ | (14,702) | $ | 1,968 | $ | (354) | $ | (13,088) | $ | (15,060) | $ | 1,683 | $ | (498) | $ | (13,875) | ||||||||||||||||||||||||||||
Guarantee liability 9 | Guarantee liability 9 | Level 3 | (189) | (199) | Guarantee liability 9 | Level 3 | (183) | (199) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives relating to: 7 | Derivatives relating to: 7 | Derivatives relating to: 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rates | Interest rates | Level 2 | — | — | (130) | (130) | — | — | (246) | (246) | Interest rates | Level 2 | — | — | (293) | (293) | — | — | (246) | (246) | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency | Foreign currency | Level 2 | — | — | (95) | (95) | — | — | (119) | (119) | Foreign currency | Level 2 | — | — | (235) | (235) | — | — | (119) | (119) | ||||||||||||||||||||||||||||||||||||||||||||
Commodities | Commodities | Level 1 | — | — | (34) | (34) | — | (103) | (103) | Commodities | Level 1 | — | — | (11) | (11) | — | (103) | (103) | ||||||||||||||||||||||||||||||||||||||||||||||
Commodities | Commodities | Level 2 | — | — | (77) | (77) | — | — | (167) | (167) | Commodities | Level 2 | — | — | (130) | (130) | — | — | (167) | (167) | ||||||||||||||||||||||||||||||||||||||||||||
Total liabilities at fair value | Total liabilities at fair value | $ | (14,391) | $ | (14,709) | Total liabilities at fair value | $ | (13,940) | $ | (14,709) |
Segment Information | Segment Information | Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Materials & Coatings | Corp. | Total | Segment Information | Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Materials & Coatings | Corp. | Total | ||||||||||||||||||||||
In millions | In millions | In millions | ||||||||||||||||||||||||||||||||
Three months ended Jun 30, 2023 | ||||||||||||||||||||||||||||||||||
Three months ended Sep 30, 2023 | Three months ended Sep 30, 2023 | |||||||||||||||||||||||||||||||||
Net sales | Net sales | $ | 5,940 | $ | 3,177 | $ | 2,197 | $ | 106 | $ | 11,420 | Net sales | $ | 5,454 | $ | 3,035 | $ | 2,130 | $ | 111 | $ | 10,730 | ||||||||||||
Equity in earnings (losses) of nonconsolidated affiliates | Equity in earnings (losses) of nonconsolidated affiliates | $ | 19 | $ | (83) | $ | 6 | $ | 1 | $ | (57) | Equity in earnings (losses) of nonconsolidated affiliates | $ | 50 | $ | (63) | $ | 5 | $ | 1 | $ | (7) | ||||||||||||
Dow Inc. Operating EBIT 1 | Dow Inc. Operating EBIT 1 | $ | 918 | $ | (35) | $ | 66 | $ | (64) | $ | 885 | Dow Inc. Operating EBIT 1 | $ | 476 | $ | 21 | $ | 179 | $ | (50) | $ | 626 | ||||||||||||
Three months ended Jun 30, 2022 | ||||||||||||||||||||||||||||||||||
Three months ended Sep 30, 2022 | Three months ended Sep 30, 2022 | |||||||||||||||||||||||||||||||||
Net sales | Net sales | $ | 8,233 | $ | 4,370 | $ | 3,003 | $ | 58 | $ | 15,664 | Net sales | $ | 7,327 | $ | 4,059 | $ | 2,654 | $ | 75 | $ | 14,115 | ||||||||||||
Equity in earnings (losses) of nonconsolidated affiliates | Equity in earnings (losses) of nonconsolidated affiliates | $ | 138 | $ | 57 | $ | 2 | $ | (2) | $ | 195 | Equity in earnings (losses) of nonconsolidated affiliates | $ | 55 | $ | (114) | $ | 1 | $ | — | $ | (58) | ||||||||||||
Dow Inc. Operating EBIT 1 | Dow Inc. Operating EBIT 1 | $ | 1,436 | $ | 426 | $ | 561 | $ | (48) | $ | 2,375 | Dow Inc. Operating EBIT 1 | $ | 785 | $ | 167 | $ | 302 | $ | (59) | $ | 1,195 | ||||||||||||
Six months ended Jun 30, 2023 | ||||||||||||||||||||||||||||||||||
Nine months ended Sep 30, 2023 | Nine months ended Sep 30, 2023 | |||||||||||||||||||||||||||||||||
Net sales | Net sales | $ | 12,054 | $ | 6,555 | $ | 4,473 | $ | 189 | $ | 23,271 | Net sales | $ | 17,508 | $ | 9,590 | $ | 6,603 | $ | 300 | $ | 34,001 | ||||||||||||
Equity in earnings (losses) of nonconsolidated affiliates | Equity in earnings (losses) of nonconsolidated affiliates | $ | 40 | $ | (156) | $ | 9 | $ | 2 | $ | (105) | Equity in earnings (losses) of nonconsolidated affiliates | $ | 90 | $ | (219) | $ | 14 | $ | 3 | $ | (112) | ||||||||||||
Dow Inc. Operating EBIT 1 | Dow Inc. Operating EBIT 1 | $ | 1,560 | $ | 88 | $ | 101 | $ | (156) | $ | 1,593 | Dow Inc. Operating EBIT 1 | $ | 2,036 | $ | 109 | $ | 280 | $ | (206) | $ | 2,219 | ||||||||||||
Six months ended Jun 30, 2022 | ||||||||||||||||||||||||||||||||||
Nine months ended Sep 30, 2022 | Nine months ended Sep 30, 2022 | |||||||||||||||||||||||||||||||||
Net sales | Net sales | $ | 15,860 | $ | 8,894 | $ | 6,052 | $ | 122 | $ | 30,928 | Net sales | $ | 23,187 | $ | 12,953 | $ | 8,706 | $ | 197 | $ | 45,043 | ||||||||||||
Equity in earnings (losses) of nonconsolidated affiliates | Equity in earnings (losses) of nonconsolidated affiliates | $ | 248 | $ | 119 | $ | 5 | $ | (3) | $ | 369 | Equity in earnings (losses) of nonconsolidated affiliates | $ | 303 | $ | 5 | $ | 6 | $ | (3) | $ | 311 | ||||||||||||
Dow Inc. Operating EBIT 1 | Dow Inc. Operating EBIT 1 | $ | 2,670 | $ | 1,087 | $ | 1,156 | $ | (119) | $ | 4,794 | Dow Inc. Operating EBIT 1 | $ | 3,455 | $ | 1,254 | $ | 1,458 | $ | (178) | $ | 5,989 |
Reconciliation of "Net income" to Operating EBIT | Reconciliation of "Net income" to Operating EBIT | Three Months Ended | Six Months Ended | Reconciliation of "Net income" to Operating EBIT | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | In millions | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||
Net income | Net income | $ | 501 | $ | 1,681 | $ | 428 | $ | 3,233 | Net income | $ | 327 | $ | 760 | $ | 755 | $ | 3,993 | ||||||||||
+ Provision for income taxes | + Provision for income taxes | 210 | 488 | 163 | 991 | + Provision for income taxes | 90 | 241 | 253 | 1,232 | ||||||||||||||||||
Income before income taxes | Income before income taxes | $ | 711 | $ | 2,169 | $ | 591 | $ | 4,224 | Income before income taxes | $ | 417 | $ | 1,001 | $ | 1,008 | $ | 5,225 | ||||||||||
- Interest income | - Interest income | 66 | 36 | 142 | 64 | - Interest income | 44 | 41 | 186 | 105 | ||||||||||||||||||
+ Interest expense and amortization of debt discount | + Interest expense and amortization of debt discount | 172 | 165 | 357 | 332 | + Interest expense and amortization of debt discount | 192 | 155 | 549 | 487 | ||||||||||||||||||
- Significant items | - Significant items | (68) | (77) | (787) | (302) | - Significant items | (61) | (80) | (848) | (382) | ||||||||||||||||||
Operating EBIT | Operating EBIT | $ | 885 | $ | 2,375 | $ | 1,593 | $ | 4,794 | Operating EBIT | $ | 626 | $ | 1,195 | $ | 2,219 | $ | 5,989 |
Significant Items by Segment | Significant Items by Segment | Three Months Ended Jun 30, 2023 | Six Months Ended Jun 30, 2023 | Significant Items by Segment | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Mat. & Coatings | Corp. | Total | Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Mat. & Coatings | Corp. | Total | Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Mat. & Coatings | Corp. | Total | Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Mat. & Coatings | Corp. | Total | |||||||||||||||||||||||||||||||||||||||||||||
In millions | In millions | In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring, implementation and efficiency costs, and asset related charges - net 1 | Restructuring, implementation and efficiency costs, and asset related charges - net 1 | $ | — | $ | (8) | $ | — | $ | (47) | $ | (55) | $ | (1) | $ | (48) | $ | (67) | $ | (490) | $ | (606) | Restructuring, implementation and efficiency costs, and asset related charges - net 1 | $ | — | $ | — | $ | — | $ | (82) | $ | (82) | $ | (1) | $ | (48) | $ | (67) | $ | (572) | $ | (688) | ||||||||||||||||||||||
Litigation related charges, awards and adjustments 2 | Litigation related charges, awards and adjustments 2 | — | — | — | — | — | — | (177) | — | — | (177) | Litigation related charges, awards and adjustments 2 | — | — | — | — | — | — | (177) | — | — | (177) | ||||||||||||||||||||||||||||||||||||||||||
Indemnification and other transaction related costs 3 | Indemnification and other transaction related costs 3 | — | — | — | (13) | (13) | — | — | — | (4) | (4) | Indemnification and other transaction related costs 3 | — | — | — | 21 | 21 | — | — | — | 17 | 17 | ||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | — | $ | (8) | $ | — | $ | (60) | $ | (68) | $ | (1) | $ | (225) | $ | (67) | $ | (494) | $ | (787) | Total | $ | — | $ | — | $ | — | $ | (61) | $ | (61) | $ | (1) | $ | (225) | $ | (67) | $ | (555) | $ | (848) |
Significant Items by Segment | Significant Items by Segment | Three Months Ended Jun 30, 2022 | Six Months Ended Jun 30, 2022 | Significant Items by Segment | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Mat. & Coatings | Corp. | Total | Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Mat. & Coatings | Corp. | Total | Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Mat. & Coatings | Corp. | Total | Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Mat. & Coatings | Corp. | Total | |||||||||||||||||||||||||||||||||||||||||||||
In millions | In millions | In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Digitalization program costs 1 | Digitalization program costs 1 | $ | — | $ | — | $ | — | $ | (51) | $ | (51) | $ | — | $ | — | $ | — | $ | (92) | $ | (92) | Digitalization program costs 1 | $ | — | $ | — | $ | — | $ | (62) | $ | (62) | $ | — | $ | — | $ | — | $ | (154) | $ | (154) | ||||||||||||||||||||||
Restructuring, implementation costs and asset related charges - net 2 | Restructuring, implementation costs and asset related charges - net 2 | — | — | — | (10) | (10) | — | — | — | (20) | (20) | Restructuring, implementation costs and asset related charges - net 2 | — | — | — | (11) | (11) | — | — | — | (31) | (31) | ||||||||||||||||||||||||||||||||||||||||||
Russia / Ukraine conflict charges 3 | Russia / Ukraine conflict charges 3 | — | — | — | — | — | (31) | (109) | (16) | (30) | (186) | Russia / Ukraine conflict charges 3 | — | — | — | — | — | (31) | (109) | (16) | (30) | (186) | ||||||||||||||||||||||||||||||||||||||||||
Loss on early extinguishment of debt 4 | Loss on early extinguishment of debt 4 | — | — | — | (8) | (8) | — | — | — | (8) | (8) | Loss on early extinguishment of debt 4 | — | — | — | — | — | — | — | — | (8) | (8) | ||||||||||||||||||||||||||||||||||||||||||
Indemnification and other transactions related costs 5 | Indemnification and other transactions related costs 5 | — | — | — | (8) | (8) | — | — | — | 4 | 4 | Indemnification and other transactions related costs 5 | — | — | — | (7) | (7) | — | — | — | (3) | (3) | ||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | — | $ | — | $ | — | $ | (77) | $ | (77) | $ | (31) | $ | (109) | $ | (16) | $ | (146) | $ | (302) | Total | $ | — | $ | — | $ | — | $ | (80) | $ | (80) | $ | (31) | $ | (109) | $ | (16) | $ | (226) | $ | (382) |
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
Summary of Sales Results | Summary of Sales Results | Three Months Ended | Six Months Ended | Summary of Sales Results | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | In millions | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||
Net sales | Net sales | $ | 11,420 | $ | 15,664 | $ | 23,271 | $ | 30,928 | Net sales | $ | 10,730 | $ | 14,115 | $ | 34,001 | $ | 45,043 |
Sales Variances by Operating Segment and Geographic Region | Sales Variances by Operating Segment and Geographic Region | Three Months Ended Jun 30, 2023 | Six Months Ended Jun 30, 2023 | Sales Variances by Operating Segment and Geographic Region | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
Local Price & Product Mix | Currency | Volume | Total | Local Price & Product Mix | Currency | Volume | Total | Local Price & Product Mix | Currency | Volume | Total | Local Price & Product Mix | Currency | Volume | Total | |||||||||||||||||||||||||||||||||||||
Percentage change from prior year | Percentage change from prior year | Percentage change from prior year | ||||||||||||||||||||||||||||||||||||||||||||||||||
Packaging & Specialty Plastics | Packaging & Specialty Plastics | (21) | % | — | % | (7) | % | (28) | % | (16) | % | (1) | % | (7) | % | (24) | % | Packaging & Specialty Plastics | (20) | % | 1 | % | (7) | % | (26) | % | (18) | % | — | % | (6) | % | (24) | % | ||||||||||||||||||
Industrial Intermediates & Infrastructure | Industrial Intermediates & Infrastructure | (15) | (1) | (11) | (27) | (11) | (1) | (14) | (26) | Industrial Intermediates & Infrastructure | (17) | (1) | (7) | (25) | (13) | (1) | (12) | (26) | ||||||||||||||||||||||||||||||||||
Performance Materials & Coatings | Performance Materials & Coatings | (16) | (1) | (10) | (27) | (14) | (2) | (10) | (26) | Performance Materials & Coatings | (17) | — | (3) | (20) | (16) | (1) | (7) | (24) | ||||||||||||||||||||||||||||||||||
Total | Total | (18) | % | (1) | % | (8) | % | (27) | % | (14) | % | (1) | % | (10) | % | (25) | % | Total | (18) | % | — | % | (6) | % | (24) | % | (16) | % | (1) | % | (8) | % | (25) | % | ||||||||||||||||||
Total, excluding the Hydrocarbons & Energy business | Total, excluding the Hydrocarbons & Energy business | (17) | % | — | % | (7) | % | (24) | % | (13) | % | (1) | % | (9) | % | (23) | % | Total, excluding the Hydrocarbons & Energy business | (19) | % | — | % | (1) | % | (20) | % | (15) | % | (1) | % | (6) | % | (22) | % | ||||||||||||||||||
U.S. & Canada | U.S. & Canada | (17) | % | — | % | (8) | % | (25) | % | (14) | % | — | % | (9) | % | (23) | % | U.S. & Canada | (18) | % | — | % | (8) | % | (26) | % | (16) | % | — | % | (8) | % | (24) | % | ||||||||||||||||||
EMEAI | EMEAI | (19) | (1) | (14) | (34) | (14) | (2) | (14) | (30) | EMEAI | (19) | 1 | (9) | (27) | (16) | (1) | (12) | (29) | ||||||||||||||||||||||||||||||||||
Asia Pacific | Asia Pacific | (17) | (2) | (4) | (23) | (14) | (2) | (8) | (24) | Asia Pacific | (16) | (2) | (2) | (20) | (15) | (2) | (6) | (23) | ||||||||||||||||||||||||||||||||||
Latin America | Latin America | (20) | — | 3 | (17) | (15) | — | 1 | (14) | Latin America | (22) | — | 4 | (18) | (18) | — | 3 | (15) | ||||||||||||||||||||||||||||||||||
Total | Total | (18) | % | (1) | % | (8) | % | (27) | % | (14) | % | (1) | % | (10) | % | (25) | % | Total | (18) | % | — | % | (6) | % | (24) | % | (16) | % | (1) | % | (8) | % | (25) | % |
Packaging & Specialty Plastics | Packaging & Specialty Plastics | Three Months Ended | Six Months Ended | Packaging & Specialty Plastics | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | In millions | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||
Net sales | Net sales | $ | 5,940 | $ | 8,233 | $ | 12,054 | $ | 15,860 | Net sales | $ | 5,454 | $ | 7,327 | $ | 17,508 | $ | 23,187 | ||||||||||
Operating EBIT | Operating EBIT | $ | 918 | $ | 1,436 | $ | 1,560 | $ | 2,670 | Operating EBIT | $ | 476 | $ | 785 | $ | 2,036 | $ | 3,455 | ||||||||||
Equity earnings | Equity earnings | $ | 19 | $ | 138 | $ | 40 | $ | 248 | Equity earnings | $ | 50 | $ | 55 | $ | 90 | $ | 303 |
Packaging & Specialty Plastics | Packaging & Specialty Plastics | Three Months Ended | Six Months Ended | Packaging & Specialty Plastics | Three Months Ended | Nine Months Ended | ||||||||||
Percentage change from prior year | Percentage change from prior year | Jun 30, 2023 | Jun 30, 2023 | Percentage change from prior year | Sep 30, 2023 | Sep 30, 2023 | ||||||||||
Change in Net Sales from Prior Period due to: | Change in Net Sales from Prior Period due to: | Change in Net Sales from Prior Period due to: | ||||||||||||||
Local price & product mix | Local price & product mix | (21) | % | (16) | % | Local price & product mix | (20) | % | (18) | % | ||||||
Currency | Currency | — | (1) | Currency | 1 | — | ||||||||||
Volume | Volume | (7) | (7) | Volume | (7) | (6) | ||||||||||
Total | Total | (28) | % | (24) | % | Total | (26) | % | (24) | % |
Industrial Intermediates & Infrastructure | Three Months Ended | Nine Months Ended | ||||||||||||
In millions | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||
Net sales | $ | 3,035 | $ | 4,059 | $ | 9,590 | $ | 12,953 | ||||||
Operating EBIT | $ | 21 | $ | 167 | $ | 109 | $ | 1,254 | ||||||
Equity earnings (losses) | $ | (63) | $ | (114) | $ | (219) | $ | 5 |
Industrial Intermediates & Infrastructure | Three Months Ended | Nine Months Ended | ||||||
Percentage change from prior year | Sep 30, 2023 | Sep 30, 2023 | ||||||
Change in Net Sales from Prior Period due to: | ||||||||
Local price & product mix | (17) | % | (13) | % | ||||
Currency | (1) | (1) | ||||||
Volume | (7) | (12) | ||||||
Total | (25) | % | (26) | % |
Industrial Intermediates & Infrastructure | Three Months Ended | Six Months Ended | ||||||||||||
In millions | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | ||||||||||
Net sales | $ | 3,177 | $ | 4,370 | $ | 6,555 | $ | 8,894 | ||||||
Operating EBIT | $ | (35) | $ | 426 | $ | 88 | $ | 1,087 | ||||||
Equity earnings (losses) | $ | (83) | $ | 57 | $ | (156) | $ | 119 |
Industrial Intermediates & Infrastructure | Three Months Ended | Six Months Ended | ||||||
Percentage change from prior year | Jun 30, 2023 | Jun 30, 2023 | ||||||
Change in Net Sales from Prior Period due to: | ||||||||
Local price & product mix | (15) | % | (11) | % | ||||
Currency | (1) | (1) | ||||||
Volume | (11) | (14) | ||||||
Total | (27) | % | (26) | % |
Performance Materials & Coatings | Performance Materials & Coatings | Three Months Ended | Six Months Ended | Performance Materials & Coatings | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | In millions | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||
Net sales | Net sales | $ | 2,197 | $ | 3,003 | $ | 4,473 | $ | 6,052 | Net sales | $ | 2,130 | $ | 2,654 | $ | 6,603 | $ | 8,706 | ||||||||||
Operating EBIT | Operating EBIT | $ | 66 | $ | 561 | $ | 101 | $ | 1,156 | Operating EBIT | $ | 179 | $ | 302 | $ | 280 | $ | 1,458 | ||||||||||
Equity earnings | Equity earnings | $ | 6 | $ | 2 | $ | 9 | $ | 5 | Equity earnings | $ | 5 | $ | 1 | $ | 14 | $ | 6 |
Performance Materials & Coatings | Three Months Ended | Six Months Ended | ||||||
Percentage change from prior year | Jun 30, 2023 | Jun 30, 2023 | ||||||
Change in Net Sales from Prior Period due to: | ||||||||
Local price & product mix | (16) | % | (14) | % | ||||
Currency | (1) | (2) | ||||||
Volume | (10) | (10) | ||||||
Total | (27) | % | (26) | % |
Performance Materials & Coatings | Three Months Ended | Nine Months Ended | ||||||
Percentage change from prior year | Sep 30, 2023 | Sep 30, 2023 | ||||||
Change in Net Sales from Prior Period due to: | ||||||||
Local price & product mix | (17) | % | (16) | % | ||||
Currency | — | (1) | ||||||
Volume | (3) | (7) | ||||||
Total | (20) | % | (24) | % |
Corporate | Three Months Ended | Six Months Ended | ||||||||||||
In millions | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | ||||||||||
Net sales | $ | 106 | $ | 58 | $ | 189 | $ | 122 | ||||||
Operating EBIT | $ | (64) | $ | (48) | $ | (156) | $ | (119) | ||||||
Equity earnings (losses) | $ | 1 | $ | (2) | $ | 2 | $ | (3) | ||||||
Corporate | Three Months Ended | Nine Months Ended | ||||||||||||
In millions | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||
Net sales | $ | 111 | $ | 75 | $ | 300 | $ | 197 | ||||||
Operating EBIT | $ | (50) | $ | (59) | $ | (206) | $ | (178) | ||||||
Equity earnings (losses) | $ | 1 | $ | — | $ | 3 | $ | (3) | ||||||
Cash Flow Summary | Cash Flow Summary | Dow Inc. | TDCC | Cash Flow Summary | Dow Inc. | TDCC | ||||||||||||||||||||||
Six Months Ended | Six Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||
Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | In millions | ||||||||||||||||||||
Cash provided by (used for): | Cash provided by (used for): | Cash provided by (used for): | ||||||||||||||||||||||||||
Operating activities - continuing operations | Operating activities - continuing operations | $ | 1,878 | $ | 3,468 | $ | 1,896 | $ | 3,493 | Operating activities - continuing operations | $ | 3,536 | $ | 5,408 | $ | 3,567 | $ | 5,441 | ||||||||||
Operating activities - discontinued operations | Operating activities - discontinued operations | 4 | (11) | — | — | Operating activities - discontinued operations | 4 | (11) | — | — | ||||||||||||||||||
Operating activities | Operating activities | 1,882 | 3,457 | 1,896 | 3,493 | Operating activities | 3,540 | 5,397 | 3,567 | 5,441 | ||||||||||||||||||
Investing activities | Investing activities | (834) | (763) | (834) | (763) | Investing activities | (1,846) | (1,339) | (1,846) | (1,339) | ||||||||||||||||||
Financing activities | Financing activities | (1,907) | (3,096) | (1,921) | (3,132) | Financing activities | (2,404) | (4,513) | (2,431) | (4,557) |
Net Working Capital | Net Working Capital | Dow Inc. | TDCC | Net Working Capital | Dow Inc. | TDCC | ||||||||||||||||||||||
Jun 30, 2023 | Dec 31, 2022 | Jun 30, 2023 | Dec 31, 2022 | Sep 30, 2023 | Dec 31, 2022 | Sep 30, 2023 | Dec 31, 2022 | |||||||||||||||||||||
In millions | In millions | In millions | ||||||||||||||||||||||||||
Current assets | Current assets | $ | 18,549 | $ | 20,477 | $ | 18,512 | $ | 20,511 | Current assets | $ | 18,298 | $ | 20,477 | $ | 18,262 | $ | 20,511 | ||||||||||
Current liabilities | Current liabilities | 9,649 | 11,331 | 9,502 | 11,247 | Current liabilities | 10,248 | 11,331 | 10,118 | 11,247 | ||||||||||||||||||
Net working capital | Net working capital | $ | 8,900 | $ | 9,146 | $ | 9,010 | $ | 9,264 | Net working capital | $ | 8,050 | $ | 9,146 | $ | 8,144 | $ | 9,264 | ||||||||||
Current ratio | Current ratio | 1.92:1 | 1.81:1 | 1.95:1 | 1.82:1 | Current ratio | 1.79:1 | 1.81:1 | 1.80:1 | 1.82:1 |
Working Capital Metrics | Working Capital Metrics | Three Months Ended | Working Capital Metrics | Three Months Ended | ||||||||||||||||||
Jun 30, 2023 | Mar 31, 2023 | Jun 30, 2022 | Sep 30, 2023 | Jun 30, 2023 | Sep 30, 2022 | |||||||||||||||||
Days sales outstanding in trade receivables | Days sales outstanding in trade receivables | 45 | 43 | 43 | Days sales outstanding in trade receivables | 47 | 45 | 45 | ||||||||||||||
Days sales in inventory | Days sales in inventory | 61 | 58 | 56 | Days sales in inventory | 61 | 61 | 59 | ||||||||||||||
Days payables outstanding | Days payables outstanding | 61 | 59 | 58 | Days payables outstanding | 62 | 61 | 63 |
Reconciliation of Free Cash Flow | Reconciliation of Free Cash Flow | Six Months Ended | Reconciliation of Free Cash Flow | Nine Months Ended | ||||||||||||
Jun 30, 2023 | Jun 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | In millions | ||||||||||||
Cash provided by operating activities - continuing operations (GAAP) | Cash provided by operating activities - continuing operations (GAAP) | $ | 1,878 | $ | 3,468 | Cash provided by operating activities - continuing operations (GAAP) | $ | 3,536 | $ | 5,408 | ||||||
Capital expenditures | Capital expenditures | (1,001) | (772) | Capital expenditures | (1,598) | (1,224) | ||||||||||
Free Cash Flow (non-GAAP) | Free Cash Flow (non-GAAP) | $ | 877 | $ | 2,696 | Free Cash Flow (non-GAAP) | $ | 1,938 | $ | 4,184 |
Reconciliation of Cash Flow Conversion (Operating EBITDA to Cash Flow from Operations) | Reconciliation of Cash Flow Conversion (Operating EBITDA to Cash Flow from Operations) | Six Months Ended | Reconciliation of Cash Flow Conversion (Operating EBITDA to Cash Flow from Operations) | Nine Months Ended | ||||||||||||
Jun 30, 2023 | Jun 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | In millions | ||||||||||||
Net income (GAAP) | Net income (GAAP) | $ | 428 | $ | 3,233 | Net income (GAAP) | $ | 755 | $ | 3,993 | ||||||
+ Provision for income taxes | + Provision for income taxes | 163 | 991 | + Provision for income taxes | 253 | 1,232 | ||||||||||
Income before income taxes | Income before income taxes | $ | 591 | $ | 4,224 | Income before income taxes | $ | 1,008 | $ | 5,225 | ||||||
- Interest income | - Interest income | 142 | 64 | - Interest income | 186 | 105 | ||||||||||
+ Interest expense and amortization of debt discount | + Interest expense and amortization of debt discount | 357 | 332 | + Interest expense and amortization of debt discount | 549 | 487 | ||||||||||
- Significant items ¹ | - Significant items ¹ | (787) | (302) | - Significant items ¹ | (848) | (382) | ||||||||||
Operating EBIT (non-GAAP) | Operating EBIT (non-GAAP) | $ | 1,593 | $ | 4,794 | Operating EBIT (non-GAAP) | $ | 2,219 | $ | 5,989 | ||||||
+ Depreciation and amortization | + Depreciation and amortization | 1,297 | 1,436 | + Depreciation and amortization | 1,954 | 2,014 | ||||||||||
Operating EBITDA (non-GAAP) | Operating EBITDA (non-GAAP) | $ | 2,890 | $ | 6,230 | Operating EBITDA (non-GAAP) | $ | 4,173 | $ | 8,093 | ||||||
Cash provided by operating activities - continuing operations (GAAP) | Cash provided by operating activities - continuing operations (GAAP) | $ | 1,878 | $ | 3,468 | Cash provided by operating activities - continuing operations (GAAP) | $ | 3,536 | $ | 5,408 | ||||||
Cash Flow Conversion (Operating EBITDA to cash flow from operations) (non-GAAP) | Cash Flow Conversion (Operating EBITDA to cash flow from operations) (non-GAAP) | 65.0 | % | 55.7 | % | Cash Flow Conversion (Operating EBITDA to cash flow from operations) (non-GAAP) | 84.7 | % | 66.8 | % |
Total Debt | Total Debt | Dow Inc. | TDCC | Total Debt | Dow Inc. | TDCC | ||||||||||||||||||||||
Jun 30, 2023 | Dec 31, 2022 | Jun 30, 2023 | Dec 31, 2022 | Sep 30, 2023 | Dec 31, 2022 | Sep 30, 2023 | Dec 31, 2022 | In millions | ||||||||||||||||||||
Notes payable | Notes payable | $ | 102 | $ | 362 | $ | 102 | $ | 362 | Notes payable | $ | 223 | $ | 362 | $ | 223 | $ | 362 | ||||||||||
Long-term debt due within one year | Long-term debt due within one year | 107 | 362 | 107 | 362 | Long-term debt due within one year | 110 | 362 | 110 | 362 | ||||||||||||||||||
Long-term debt | Long-term debt | 14,735 | 14,698 | 14,735 | 14,698 | Long-term debt | 14,592 | 14,698 | 14,592 | 14,698 | ||||||||||||||||||
Gross debt | Gross debt | $ | 14,944 | $ | 15,422 | $ | 14,944 | $ | 15,422 | Gross debt | $ | 14,925 | $ | 15,422 | $ | 14,925 | $ | 15,422 | ||||||||||
- Cash and cash equivalents | - Cash and cash equivalents | 2,924 | 3,886 | 2,924 | 3,886 | - Cash and cash equivalents | 3,080 | 3,886 | 3,080 | 3,886 | ||||||||||||||||||
- Marketable securities 1 | - Marketable securities 1 | 716 | 939 | 716 | 939 | - Marketable securities 1 | 914 | 939 | 914 | 939 | ||||||||||||||||||
Net debt | Net debt | $ | 11,304 | $ | 10,597 | $ | 11,304 | $ | 10,597 | Net debt | $ | 10,931 | $ | 10,597 | $ | 10,931 | $ | 10,597 | ||||||||||
Total equity | Total equity | $ | 20,509 | $ | 21,247 | $ | 20,736 | $ | 21,489 | Total equity | $ | 20,080 | $ | 21,247 | $ | 20,278 | $ | 21,489 | ||||||||||
Gross debt as a percent of total capitalization | Gross debt as a percent of total capitalization | 42.2 | % | 42.1 | % | 41.9 | % | 41.8 | % | Gross debt as a percent of total capitalization | 42.6 | % | 42.1 | % | 42.4 | % | 41.8 | % | ||||||||||
Net debt as a percent of total capitalization | Net debt as a percent of total capitalization | 35.5 | % | 33.3 | % | 35.3 | % | 33.0 | % | Net debt as a percent of total capitalization | 35.2 | % | 33.3 | % | 35.0 | % | 33.0 | % |
Credit Ratings | Long-Term Rating | Short-Term Rating | Outlook | ||||||||
Fitch Ratings | BBB+ | F1 | Stable | ||||||||
Moody’s Investors Service | Baa1 | P-2 | Stable | ||||||||
Standard & Poor’s | BBB | A-2 |
Dow Inc. Dividends Declared and Paid | |||||||||||
Declaration Date | Record Date | Payment Date | Amount (per share) | ||||||||
February 9, 2023 | February 28, 2023 | March 10, 2023 | $ | 0.70 | |||||||
April 13, 2023 | May 31, 2023 | June 9, 2023 | $ | 0.70 | |||||||
August 9, 2023 | August 31, 2023 | September 8, 2023 | $ | 0.70 | |||||||
October 12, 2023 | November 30, 2023 | December 8, 2023 | $ | 0.70 | |||||||
Contractual Obligations at Jun 30, 2023 | Payments Due In | |||||||||||||||||||||||||||||||||
Contractual Obligations at Sep 30, 2023 | Contractual Obligations at Sep 30, 2023 | Payments Due In | ||||||||||||||||||||||||||||||||
In millions | In millions | 2023 | 2024-2025 | 2026-2027 | 2028 and beyond | Total | In millions | 2023 | 2024-2025 | 2026-2027 | 2028 and beyond | Total | ||||||||||||||||||||||
Dow Inc. | Dow Inc. | Dow Inc. | ||||||||||||||||||||||||||||||||
Long-term debt obligations 1 | Long-term debt obligations 1 | $ | 59 | $ | 518 | $ | 1,327 | $ | 13,206 | $ | 15,110 | Long-term debt obligations 1 | $ | 35 | $ | 533 | $ | 1,312 | $ | 13,083 | $ | 14,963 | ||||||||||||
Expected cash requirements for interest 2 | Expected cash requirements for interest 2 | $ | 343 | $ | 1,353 | $ | 1,301 | $ | 8,673 | $ | 11,670 | Expected cash requirements for interest 2 | $ | 346 | $ | 1,492 | $ | 1,302 | $ | 8,684 | $ | 11,824 | ||||||||||||
Purchase obligations 3 | Purchase obligations 3 | $ | 1,641 | $ | 4,092 | $ | 2,336 | $ | 3,905 | $ | 11,974 | Purchase obligations 3 | $ | 826 | $ | 4,049 | $ | 2,332 | $ | 3,907 | $ | 11,114 |
Asbestos-Related Claim Activity | Asbestos-Related Claim Activity | 2023 | 2022 | Asbestos-Related Claim Activity | 2023 | 2022 | ||||||||||
Claims unresolved at Jan 1 | Claims unresolved at Jan 1 | 6,873 | 8,747 | Claims unresolved at Jan 1 | 6,873 | 8,747 | ||||||||||
Claims filed | Claims filed | 1,911 | 2,388 | Claims filed | 3,097 | 3,662 | ||||||||||
Claims settled, dismissed or otherwise resolved | Claims settled, dismissed or otherwise resolved | (1,622) | (2,275) | Claims settled, dismissed or otherwise resolved | (3,428) | (5,823) | ||||||||||
Claims unresolved at Jun 30 | 7,162 | 8,860 | ||||||||||||||
Claims unresolved at Sep 30 | Claims unresolved at Sep 30 | 6,542 | 6,586 | |||||||||||||
Claimants with claims against both Union Carbide and Amchem | Claimants with claims against both Union Carbide and Amchem | (1,457) | (2,106) | Claimants with claims against both Union Carbide and Amchem | (1,452) | (1,502) | ||||||||||
Individual claimants at Jun 30 | 5,705 | 6,754 | ||||||||||||||
Individual claimants at Sep 30 | Individual claimants at Sep 30 | 5,090 | 5,084 |
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. CONTROLS AND PROCEDURES |
Dow Inc. and Subsidiaries The Dow Chemical Company and Subsidiaries PART II – OTHER INFORMATION |
ITEM 1. LEGAL PROCEEDINGS |
ITEM 1A. RISK FACTORS |
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
Issuer Purchases of Equity Securities | Total number of shares purchased as part of the Company's publicly announced share repurchase program | Approximate dollar value of shares that may yet be purchased under the Company's publicly announced share repurchase program 1 (In millions) | ||||||||||||
Period | Total number of shares purchased | Average price paid per share | ||||||||||||
April 2023 | — | $ | — | — | $ | 1,925 | ||||||||
May 2023 | 2,361,695 | $ | 52.93 | 2,361,695 | $ | 1,800 | ||||||||
June 2023 | 2,459,526 | $ | 50.82 | 2,459,526 | $ | 1,675 | ||||||||
Second quarter 2023 | 4,821,221 | $ | 51.85 | 4,821,221 | $ | 1,675 |
Issuer Purchases of Equity Securities | Total number of shares purchased as part of the Company's publicly announced share repurchase program | Approximate dollar value of shares that may yet be purchased under the Company's publicly announced share repurchase program 1 (In millions) | ||||||||||||
Period | Total number of shares purchased | Average price paid per share | ||||||||||||
July 2023 | 73,090 | $ | 54.73 | 73,090 | $ | 1,671 | ||||||||
August 2023 | 1,679,126 | $ | 54.79 | 1,679,126 | $ | 1,579 | ||||||||
September 2023 | 531,740 | $ | 54.54 | 531,740 | $ | 1,550 | ||||||||
Third quarter 2023 | 2,283,956 | $ | 54.73 | 2,283,956 | $ | 1,550 |
ITEM 4. MINE SAFETY DISCLOSURES |
ITEM 5. OTHER INFORMATION |
ITEM 6. EXHIBITS |
EXHIBIT NO. | DESCRIPTION | ||||||||||
4.3 | Dow Inc. agrees to provide the SEC, on request, copies of all other such indentures and instruments that define the rights of holders of long-term debt of Dow Inc. and its consolidated subsidiaries, including The Dow Chemical Company, pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K. | ||||||||||
23 * | Ankura Consulting Group, LLC's Consent. | ||||||||||
31.1 * | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||||
31.2 * | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||||
32.1 * | Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||||
32.2 * | Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||||
101.INS | The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | ||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | ||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | ||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | ||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | ||||||||||
104 | Cover Page Interactive Data File. The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
TRADEMARK LISTING |
Dow Inc. and Subsidiaries The Dow Chemical Company and Subsidiaries Signature |
/s/ RONALD C. EDMONDS | ||
Ronald C. Edmonds Controller and Vice President of Controllers and Tax (Authorized Signatory and Principal Accounting Officer) |