Cover Page
Cover Page | 3 Months Ended |
Mar. 31, 2020shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2020 |
Document Transition Report | false |
Entity File Number | 1-1463 |
Entity Registrant Name | Union Carbide Corporation |
Entity Incorporation, State or Country Code | NY |
Entity Tax Identification Number | 13-1421730 |
Entity Address, Address Line One | 7501 STATE HIGHWAY 185 NORTH |
Entity Address, City or Town | SEADRIFT |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 77983 |
City Area Code | 361 |
Local Phone Number | 553-2997 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 935.51 |
Entity Central Index Key | 0000100790 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Title of 12(b) Security | None |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net trade sales | $ 29 | $ 28 |
Net sales to related companies | 1,013 | 1,250 |
Total Net Sales | 1,042 | 1,278 |
Cost of sales | 826 | 950 |
Research and development expenses | 6 | 6 |
Selling, general and administrative expenses | 2 | 2 |
Restructuring and asset related charges - net | 2 | 1 |
Integration and separation costs | 0 | 1 |
Sundry income (expense) - net | (18) | (21) |
Interest Income, Other | 7 | 9 |
Interest expense and amortization of debt discount | 8 | 7 |
Income before income taxes | 187 | 299 |
Provision for income taxes | 41 | 54 |
Net Income Attributable to Union Carbide Corporation | 146 | 245 |
Depreciation | 45 | 43 |
Capital Expenditures | $ 33 | $ 60 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net income attributable to Union Carbide Corporation | $ 146 | $ 245 |
Cumulative translation adjustments | 3 | 0 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (20) | (15) |
Other Comprehensive Income (Loss), Net of Tax | 23 | 15 |
Comprehensive income attributable to Union Carbide Corporation | $ 169 | $ 260 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Cash and cash equivalents | $ 11 | $ 11 |
Trade (net of allowance for doubtful receivables 2020: $-; 2019: $-) | 26 | 26 |
Allowance for doubtful accounts | 0 | 0 |
Related companies | 712 | 658 |
Other | 17 | 17 |
Income taxes receivable | 287 | 337 |
Notes receivable from related companies | 1,499 | 1,505 |
Inventories | 243 | 247 |
Other current assets | 13 | 20 |
Total current assets | 2,808 | 2,821 |
Investments in related companies | 238 | 238 |
Other investments | 21 | 22 |
Noncurrent receivables | 119 | 118 |
Noncurrent receivables from related companies | 67 | 66 |
Total investments | 445 | 444 |
Property | 7,279 | 7,247 |
Less accumulated depreciation | 5,922 | 5,878 |
Net property | 1,357 | 1,369 |
Intangible assets (net of accumulated amortization 2020: $92; 2019: $90) | 21 | 22 |
Finite-Lived Intangible Assets, Accumulated Amortization | 92 | 90 |
Operating lease right-of-use assets | 86 | 89 |
Deferred Tax Assets, Deferred Income | 499 | 507 |
Deferred charges and other assets | 24 | 26 |
Total other assets | 630 | 644 |
Total Assets | 5,240 | 5,278 |
Notes payable - related companies | 31 | 32 |
Notes Payable - Other | 8 | 6 |
Long-term debt due within one year | 1 | 1 |
Trade | 207 | 218 |
Related companies | 293 | 386 |
Other | 21 | 10 |
Operating lease liabilities - current | 15 | 16 |
Income taxes payable | 25 | 25 |
Asbestos-related liabilities - current | 100 | 105 |
Accrued and other current liabilities | 130 | 126 |
Total current liabilities | 831 | 925 |
Long-term Debt | 473 | 474 |
Pension and other postretirement benefits - noncurrent | 1,140 | 1,154 |
Asbestos-related liabilities - noncurrent | 1,048 | 1,060 |
Operating lease liabilities - noncurrent | 72 | 74 |
Other noncurrent obligations | 191 | 194 |
Liabilities, Other than Long-term Debt, Noncurrent | 2,451 | 2,482 |
Common stock (authorized: 1,000 shares of $0.01 par value each; issued: 935.51 shares) | $ 0 | $ 0 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 935.51 | 935.51 |
Additional paid-in capital | $ 141 | $ 141 |
Retained earnings | 2,987 | 2,922 |
Accumulated other comprehensive loss | (1,642) | (1,665) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,486 | 1,398 |
Total Liabilities and Equity | 5,240 | 5,278 |
Long-Term Debt | $ 472 | $ 473 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net income attributable to Union Carbide Corporation | $ 146 | $ 245 |
Depreciation and amortization | 52 | 49 |
Provision (credit) for deferred income tax | 1 | (1) |
Net gain on sales of property and investments | 1 | 0 |
Restructuring and asset related charges - net | 2 | 1 |
Net periodic pension benefit cost | 14 | 13 |
Payment for Pension Benefits | 1 | 1 |
Other, net | 1 | 0 |
Increase (Decrease) in Accounts and Notes Receivable | (1) | (2) |
Increase (Decrease) in Accounts Receivable, Related Parties | 48 | 40 |
Increase (Decrease) in Inventories | (4) | 17 |
Accounts payable | 3 | 7 |
Related company payables | (95) | (124) |
Asbestos-related payments | 18 | 17 |
Increase (Decrease) in Other Operating Assets and Liabilities, Net | (53) | (99) |
Cash provided by operating activities | 112 | 216 |
Capital Expenditures | 33 | 60 |
Increase (Decrease) in Due from Related Parties | 0 | (1) |
Proceeds from sales of investments | 0 | 2 |
Cash used for investing activities | (33) | (57) |
Payments of Dividends | 81 | 160 |
Changes in short-term notes payable | 2 | 1 |
Cash used for financing activities | (79) | (159) |
Cash and cash equivalents | 11 | 13 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect, Total | $ 0 | $ 0 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 0 | $ 138 | $ 3,338 | $ (1,561) | |
Net income attributable to Union Carbide Corporation | $ 245 | 245 | |||
Dividends, Common Stock | (632) | ||||
Other Comprehensive Income (Loss), Net of Tax | 15 | 15 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,543 | 0 | 138 | 2,951 | (1,546) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,398 | 0 | 141 | 2,922 | (1,665) |
Net income attributable to Union Carbide Corporation | 146 | 146 | |||
Dividends, Common Stock | (81) | ||||
Other Comprehensive Income (Loss), Net of Tax | 23 | 23 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,486 | $ 0 | $ 141 | $ 2,987 | $ (1,642) |
CONSOLIDATED FINANCIAL STATEMEN
CONSOLIDATED FINANCIAL STATEMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | CONSOLIDATED FINANCIAL STATEMENTS Basis of Presentation The unaudited interim consolidated financial statements of Union Carbide Corporation and its subsidiaries (the "Corporation" or "UCC") were prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and reflect all adjustments (including normal recurring accruals) which, in the opinion of management, are considered necessary for the fair presentation of the results for the periods presented. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2019. The Corporation is a wholly owned subsidiary of The Dow Chemical Company ("TDCC"). In accordance with the accounting guidance for earnings per share, the presentation of earnings per share is not required in financial statements of wholly owned subsidiaries. The Corporation’s business activities comprise components of TDCC’s global operations rather than stand-alone operations. TDCC conducts its worldwide operations through global businesses. Because there are no separable reportable business segments for UCC under the accounting guidance related to segment reporting and no detailed business information is provided to a chief operating decision maker regarding the Corporation’s stand-alone operations, the Corporation’s results are reported as a single operating segment. On April 1, 2019, DowDuPont Inc. (“DowDuPont” and effective June 3, 2019, n/k/a DuPont de Nemours, Inc.) completed the separation of its materials science business and Dow Inc. became the direct parent company of TDCC and its consolidated subsidiaries. The separation was contemplated by the merger of equals transaction effective August 31, 2017, under the Agreement and Plan of Merger, dated as of December 11, 2015, as amended on March 31, 2017. TDCC and E. I. du Pont de Nemours and Company and its consolidated subsidiaries ("Historical DuPont") each merged with subsidiaries of DowDuPont, and, as a result, TDCC and Historical DuPont became subsidiaries of DowDuPont (the “Merger”). Subsequent to the Merger, TDCC and Historical DuPont engaged in a series of internal reorganization and realignment steps to realign their businesses into three subgroups: agriculture, materials science and specialty products. Dow Inc. was formed as a wholly owned subsidiary of DowDuPont to serve as the holding company for the materials science business. UCC remains a wholly owned subsidiary of TDCC. See Note 3 for additional information. |
BUSINESS SEPARATION
BUSINESS SEPARATION | 3 Months Ended |
Mar. 31, 2020 | |
BUSINESS SEPARATION [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | BUSINESS SEPARATION On April 1, 2019, DowDuPont completed the separation of its materials science business and Dow Inc. became the direct parent company of TDCC. UCC remains a wholly owned subsidiary of TDCC. In the first quarter of 2019, in anticipation of DowDuPont's intended separation of its materials science business, UCC's assets and liabilities aligned with TDCC's specialty products business were transferred to TDCC as part of the internal reorganization steps to align TDCC's specialty products business to DowDuPont. In order to align entity ownership under TDCC, UCC distributed shares and assets to TDCC through dividends or asset distributions. As a result, in February 2019, UCC issued to TDCC a dividend of 1,067 shares of common stock of Dow International Holdings Company (“DIHC”), a cost method investment, resulting in a reduction in "Investments in related companies" of $401 million. UCC also transferred, as an asset distribution, the assets and liabilities aligned with TDCC's specialty products business for an additional dividend of $71 million to TDCC. The results of these transactions are reflected in “Investments in related companies” and “Retained earnings” in the consolidated balance sheets. See Note 12 for additional information. The Corporation evaluated the impact of the specialty products product line transfer and determined it did not represent a strategic shift that had a major effect on the Corporation’s operations and financial results and did not qualify as an individually significant component of the Corporation. As a result, this transfer was not reported as discontinued operations. |
REVENUE FROM CONTRACT WITH CUST
REVENUE FROM CONTRACT WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE Substantially all of the Corporation's revenue is generated by sales to TDCC. Products are sold to and purchased from TDCC at market-based prices in accordance with the terms of an agreement between UCC and TDCC. Approximately 99 percent of the Corporation's revenue for the three months ended March 31, 2020, related to sales of product (98 percent for the three months ended March 31, 2019); the remaining revenue primarily related to the licensing of patents and technology. The Corporation sells its products to TDCC to simplify the customer interface process. The Corporation’s contract liabilities include payments received in advance of performance under long-term contracts for product sales and royalties with remaining contract terms that range up to 21 years. Amounts are recognized in revenue when the performance obligations for the contract are met. The Corporation has rights to additional consideration when product is delivered to the customer. The balance of contract liabilities was $39 million at March 31, 2020 ($41 million at December 31, 2019), of which $3 million ($4 million at December 31, 2019) was included in "Accrued and other current liabilities" and $36 million ($37 million at December 31, 2019) was included in "Other noncurrent obligations" in the consolidated balance sheets. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES The following table provides a breakdown of inventories: Inventories Mar 31, Dec 31, In millions Finished goods $ 154 $ 162 Work in process 25 31 Raw materials 47 47 Supplies 90 92 Total $ 316 $ 332 Adjustment of inventories to a LIFO basis (73) (85) Total inventories $ 243 $ 247 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2020 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
INTANGIBLE ASSETS DISCLOSURE | INTANGIBLE ASSETS The following table provides information regarding the Corporation’s intangible assets: Intangible Assets Mar 31, 2020 Dec 31, 2019 In millions Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible assets with finite lives: Licenses and developed technology $ 33 $ (33) $ — $ 33 $ (33) $ — Software 80 (59) 21 79 (57) 22 Total intangible assets $ 113 $ (92) $ 21 $ 112 $ (90) $ 22 Total estimated amortization expense for 2020 and the five succeeding fiscal years, including amounts for intangible assets not yet placed in service, is as follows: Estimated Amortization Expense In millions 2020 $ 8 2021 $ 6 2022 $ 5 2023 $ 3 2024 $ 1 2025 $ — |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES DISCLOSURE | COMMITMENTS AND CONTINGENT LIABILITIES Environmental Matters Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. At March 31, 2020, the Corporation had accrued obligations of $131 million for probable environmental remediation and restoration costs, including $18 million for the remediation of Superfund sites. These obligations are included in "Accrued and other current liabilities" and "Other noncurrent obligations" in the consolidated balance sheets. This is management’s best estimate of the costs for remediation and restoration with respect to environmental matters for which the Corporation has accrued liabilities, although it is reasonably possible that the ultimate cost with respect to these particular matters could range up to approximately two and a half times that amount. Consequently, it is reasonably possible that environmental remediation and restoration costs in excess of amounts accrued could have a material impact on the Corporation's results of operations, financial condition and cash flows. It is the opinion of the Corporation’s management that the possibility is remote that costs in excess of the range disclosed will have a material impact on the Corporation’s results of operations, financial condition and cash flows. Inherent uncertainties exist in these estimates primarily due to unknown environmental conditions, changing governmental regulations and legal standards regarding liability, and emerging remediation technologies for handling site remediation and restoration. As new or additional information becomes available and/or certain spending trends become known, management will evaluate such information in determination of the current estimate of the environmental liability. At December 31, 2019, the Corporation had accrued obligations of $132 million for probable environmental remediation and restoration costs, including $20 million for the remediation of Superfund sites. Litigation Asbestos-Related Matters A summary of asbestos-related matters can be found in Note 14 to the Consolidated Financial Statements included in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2019. Introduction The Corporation is and has been involved in a large number of asbestos-related suits filed primarily in state courts during the past four decades. These suits principally allege personal injury resulting from exposure to asbestos-containing products and frequently seek both actual and punitive damages. The alleged claims primarily relate to products that UCC sold in the past, alleged exposure to asbestos-containing products located on UCC’s premises and UCC’s responsibility for asbestos suits filed against a former UCC subsidiary, Amchem Products, Inc. ("Amchem"). In many cases, plaintiffs are unable to demonstrate that they have suffered any compensable loss as a result of such exposure, or that injuries incurred in fact resulted from exposure to the Corporation’s products. The Corporation expects more asbestos-related suits to be filed against UCC and Amchem in the future, and will aggressively defend or reasonably resolve, as appropriate, both pending and future claims. Estimating the Asbestos-Related Liability Since 2003, the Corporation has engaged Ankura Consulting Group, LLC ("Ankura"), a third party actuarial specialist, to review the Corporation's historical asbestos-related claim and resolution activity in order to assist UCC management in estimating the asbestos-related liability. Each year, the Corporation requests Ankura to review its claim and resolution activity, including asbestos-related defense and processing costs, to determine the appropriateness of updating the most recent Ankura study. Based on the review completed by Ankura in December 2019 and the Corporation's internal review process, the Corporation's total asbestos-related liability through the terminal year of 2049, including asbestos-related defense and processing costs, was $1,165 million at December 31, 2019, and was included in “Asbestos-related liabilities - current” and “Asbestos-related liabilities - noncurrent” in the consolidated balance sheets. Each quarter, the Corporation reviews claims filed, settled and dismissed, as well as average settlement and resolution costs by disease category. The Corporation also considers additional quantitative and qualitative factors such as the nature of pending claims, trial experience of the Corporation and other asbestos defendants, current spending for defense and processing costs, significant appellate rulings and legislative developments, trends in the tort system, and their respective effects on expected future resolution costs. UCC management considers these factors in conjunction with the most recent Ankura study and determines whether a change in the estimate is warranted. Based on the Corporation's review of 2020 activity, it was determined that no adjustment to the accrual was required at March 31, 2020. The Corporation’s asbestos-related liability for pending and future claims and defense and processing costs was $1,148 million at March 31, 2020, and approximately 19 percent of the recorded claim liability related to pending claims and approximately 81 percent related to future claims. Summary The Corporation's management believes the amounts recorded for the asbestos-related liability, including defense and processing costs, reflect reasonable and probable estimates of the liability based on current, known facts. However, future events, such as the number of new claims to be filed and/or received each year and the average cost of defending and disposing of each such claim, as well as the numerous uncertainties surrounding asbestos litigation in the United States over a significant period of time, could cause the actual costs for the Corporation to be higher or lower than those projected or those recorded. Any such event could result in an increase or decrease in the recorded liability. Because of the uncertainties described above, the Corporation cannot estimate the full range of the cost of resolving pending and future asbestos-related claims facing UCC and Amchem. As a result, it is reasonably possible that an additional cost of disposing of asbestos-related claims, including future defense and processing costs, could have a material impact on the Corporation's results of operations and cash flows for a particular period and on the consolidated financial position. Other Litigation Matters The Corporation is also involved in a number of legal proceedings and claims with both private and governmental parties. These cover a wide range of matters, including, but not limited to: product liability; trade regulation; governmental tax and regulatory disputes; health, safety and environmental matters; employment matters; patent infringement; contracts; and commercial litigation. While it is not possible at this time to determine with certainty the ultimate outcome of any of the legal proceedings and claims referred to in this filing, management believes that the possibility is remote that the aggregate of all such other claims and lawsuits will have a material adverse impact on the results of operations, cash flows and financial position of the Corporation. |
LEASES (Notes)
LEASES (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | LEASES For additional information on the Corporation's leases, see Note 15 to the Consolidated Financial Statements included in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2019. The components of lease cost for operating and finance leases for the three months ended March 31, 2020 and 2019 were as follows: Lease Cost Three Months Ended In millions Mar 31, 2020 Mar 31, 2019 Operating lease cost $ 5 $ 6 Short-term lease cost 6 7 Variable lease cost 2 — Total lease cost $ 13 $ 13 The following table provides supplemental cash flow information related to leases: Other Lease Information Three Months Ended In millions Mar 31, 2020 Mar 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 5 $ 6 The following table summarizes the lease-related assets and liabilities recorded in the consolidated balance sheets at March 31, 2020 and December 31, 2019: Lease Position Balance Sheet Classification Mar 31, 2020 Dec 31, 2019 In millions Right-of-use assets obtained in exchange for lease obligations: Operating leases 1 $ 3 $ 105 Assets Operating lease assets Operating lease right-of-use assets $ 86 $ 89 Finance lease assets Property 12 12 Finance lease amortization Accumulated depreciation (7) (6) Total lease assets $ 91 $ 95 Liabilities Current Operating Operating lease liabilities - current $ 15 $ 16 Finance Long-term debt due within one year 1 1 Noncurrent Operating Operating lease liabilities - noncurrent 72 74 Finance Long-Term Debt 4 5 Total lease liabilities $ 92 $ 96 1. Includes $99 million for the period ended December 31, 2019 related to the adoption of ASU 2016-02, "Leases (Topic 842)," and the associated ASUs, in the first quarter of 2019. Lease Term and Discount Rate Mar 31, 2020 Dec 31, 2019 Weighted-average remaining lease term Operating leases 6.4 years 6.3 years Finance leases 4.3 years 4.5 years Weighted-average discount rate Operating leases 4.13 % 4.13 % Finance leases 4.22 % 4.22 % The following table provides the maturities of lease liabilities at March 31, 2020: Maturities of Lease Liabilities Mar 31, 2020 Operating Leases Finance Leases In millions 2020 $ 13 $ 1 2021 16 2 2022 16 1 2023 14 1 2024 13 1 2025 and thereafter 27 — Total future undiscounted lease payments $ 99 $ 6 Less imputed interest 12 1 Total present value of lease liabilities $ 87 $ 5 At March 31, 2020, the Corporation had additional leases of approximately $16 million for equipment and a rail yard, which had not yet commenced. These leases are expected to commence in 2020 and 2021, with lease terms of up to 20 years. |
AOCL
AOCL | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in the balances for each component of accumulated other comprehensive loss ("AOCL") for the three months ended March 31, 2020 and 2019 were as follows: Accumulated Other Comprehensive Loss Three Months Ended In millions Mar 31, 2020 Mar 31, 2019 Cumulative Translation Adjustment Beginning balance $ (56) $ (57) Gains on foreign currency translation 3 — Ending balance $ (53) $ (57) Pension and Other Postretirement Benefits Beginning balance $ (1,609) $ (1,504) Amortization and recognition of net loss 1 26 19 Less: Tax expense (benefit) 2 (6) (4) Other comprehensive income, net of tax 20 15 Ending balance $ (1,589) $ (1,489) Total AOCL ending balance $ (1,642) $ (1,546) 1. These AOCL components are included in the computation of net periodic benefit cost of the Corporation's defined benefit pension and other postretirement benefit plans. See Note 10 for additional information. 2. Reclassified to "Provision for income taxes." |
PENSION PLANS AND OTHER POSTRET
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS A summary of the Corporation's pension and other postretirement benefit plans can be found in Note 17 to the Consolidated Financial Statements included in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2019. The following table provides the components of the Corporation's net periodic benefit cost for all significant plans: Net Periodic Benefit Cost for All Significant Plans Three Months Ended In millions Mar 31, Mar 31, Defined Benefit Pension Plans: Service cost $ 9 $ 9 Interest cost 28 36 Expected return on plan assets (50) (53) Amortization of net loss 27 21 Net periodic benefit cost $ 14 $ 13 Other Postretirement Benefit Plan: Interest cost $ 1 $ 2 Amortization of net gain (1) (2) Net periodic benefit cost $ — $ — |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments Disclosure [Text Block] | FAIR VALUE MEASUREMENTS The Corporation's financial instruments are classified as Level 2 measurements. For assets and liabilities classified as Level 2 measurements, where the security is frequently traded in less active markets, fair value is based on the closing price at the end of the period; where the security is less frequently traded, fair value is based on the price a dealer would pay for the security or similar securities, adjusted for any terms specific to that asset or liability, or by using observable market data points of similar, more liquid securities to imply the price. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance/quality checks. The following table summarizes the fair value of the Corporation's financial instruments at March 31, 2020 and December 31, 2019: Fair Value of Financial Instruments Mar 31, 2020 Dec 31, 2019 In millions Cost Gain Loss Fair Value Cost Gain Loss Fair Value Cash equivalents 1 $ 10 $ — $ — $ 10 $ 10 $ — $ — $ 10 Long-term debt including debt due within one year $ (473) $ — $ (51) $ (524) $ (474) $ — $ (115) $ (589) 1. Money market fund is included in "Cash and cash equivalents" in the consolidated balance sheets and held at amortized cost, which approximates fair value. Cost approximates fair value for all other financial instruments. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS DISCLOSURE | RELATED PARTY TRANSACTIONS The Corporation sells its products to TDCC to simplify the customer interface process. Products are sold to and purchased from TDCC at market-based prices in accordance with the terms of an agreement between UCC and TDCC. After each quarter, the Corporation and TDCC analyze the pricing used for the sales in that quarter and reach agreement on any necessary adjustments, at which point the prices are final. The Corporation also procures certain commodities and raw materials through a TDCC subsidiary and pays a commission to that TDCC subsidiary based on the volume and type of commodities and raw materials purchased. The commission expense was included in "Sundry income (expense) - net" in the consolidated statements of income. Purchases from that TDCC subsidiary were $231 million in the first quarter of 2020 ($334 million in the first quarter of 2019). The decrease in purchase costs in the first quarter of 2020 when compared with the same period last year was primarily due to lower feedstock and energy costs. The Corporation has a master services agreement with TDCC, whereby TDCC provides services including, but not limited to: accounting; legal; treasury (investments, cash management, risk management, insurance); procurement; human resources; environmental; health and safety; and business management for UCC. Under the master services agreement with TDCC, general administrative and overhead type services that TDCC routinely allocates to various businesses are charged to UCC. The master services agreement cost allocation basis is headcount and includes a 10 percent service fee. This agreement resulted in expense of $8 million in the first quarter of 2020 ($6 million in the first quarter of 2019) for general administrative and overhead type services and the 10 percent service fee, included in "Sundry income (expense) - net" in the consolidated statements of income. The remaining activity-based costs were $23 million in the first quarter of 2020 ($23 million in the first quarter of 2019), and were included in "Cost of sales" in the consolidated statements of income. Management believes the method used for determining expenses charged by TDCC is reasonable. TDCC provides these services by leveraging its centralized functional service centers to provide services at a cost that management believes provides an advantage to the Corporation. The monitoring and execution of risk management policies related to interest rate and foreign currency risks, which are based on TDCC’s risk management philosophy, are provided as a service to UCC. As part of TDCC’s cash management process, UCC is a party to revolving loans with TDCC that have interest rates based on LIBOR (London Interbank Offered Rate) with varying maturities. At March 31, 2020, the Corporation had a note receivable of $1.5 billion ($1.5 billion at December 31, 2019) from TDCC under a revolving loan agreement. The Corporation may draw from this note receivable in support of its daily working capital requirements and, as such, the net effect of cash inflows and outflows under this revolving loan agreement is presented in the consolidated statements of cash flows as an operating activity. The Corporation also has a separate revolving credit agreement with TDCC that allows the Corporation to borrow or obtain credit enhancements up to an aggregate of $1 billion that matures on December 30, 2020. TDCC may demand repayment with a 30-day written notice to the Corporation, subject to certain restrictions. A related collateral agreement provides for the replacement of certain existing pledged assets, primarily equity interests in various subsidiaries, with cash collateral. At March 31, 2020, $936 million was available under the revolving credit agreement ($937 million at December 31, 2019). The cash collateral was reported as “Noncurrent receivables from related companies” in the consolidated balance sheets. On a quarterly basis, the Corporation's Board of Directors (the "Board") reviews and determines if there will be a dividend distribution to its parent company and sole shareholder, TDCC. The Board takes into consideration the level of earnings and cash flows, among other factors, in determining the amount of the dividend distribution. In the first quarter of 2020, the Corporation declared and paid a cash dividend of $81 million to TDCC. In the first quarter of 2019, the Corporation declared and paid a cash dividend of $160 million to TDCC. In the first quarter of 2019, in anticipation of the business separation activities to align TDCC's specialty products business with DowDuPont, UCC issued a stock dividend to TDCC for 63.4 percent of its ownership interest in DIHC, a cost method investment, which totaled $401 million. UCC also distributed assets and liabilities aligned with TDCC's specialty products business for an additional dividend to TDCC of $71 million. See Note 3 for additional information. |
Accounting Changes and Error Co
Accounting Changes and Error Corrections (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING GUIDANCE | RECENT ACCOUNTING GUIDANCE Accounting Guidance Issued But Not Adopted at March 31, 2020 In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." The amendments simplify the accounting for income taxes by removing certain exceptions to the general principles of Topic 740, "Income Taxes" and improve consistent application by clarifying and amending existing guidance. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted, with the amendments to be applied on a retrospective, modified retrospective or prospective basis, depending on the specific amendment. The Corporation is currently evaluating the impact of adopting this guidance. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The amendments provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments are intended to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. The new standard is effective March 12, 2020 through December 31, 2022, with the adoption date being dependent upon the Corporation’s election. The Corporation is currently evaluating the impact of adopting this guidance. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | The following table provides a breakdown of inventories: Inventories Mar 31, Dec 31, In millions Finished goods $ 154 $ 162 Work in process 25 31 Raw materials 47 47 Supplies 90 92 Total $ 316 $ 332 Adjustment of inventories to a LIFO basis (73) (85) Total inventories $ 243 $ 247 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | The following table provides information regarding the Corporation’s intangible assets: Intangible Assets Mar 31, 2020 Dec 31, 2019 In millions Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible assets with finite lives: Licenses and developed technology $ 33 $ (33) $ — $ 33 $ (33) $ — Software 80 (59) 21 79 (57) 22 Total intangible assets $ 113 $ (92) $ 21 $ 112 $ (90) $ 22 |
Schedule of Expected Amortization Expense [Table Text Block] | Total estimated amortization expense for 2020 and the five succeeding fiscal years, including amounts for intangible assets not yet placed in service, is as follows: Estimated Amortization Expense In millions 2020 $ 8 2021 $ 6 2022 $ 5 2023 $ 3 2024 $ 1 2025 $ — |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | Lease Cost Three Months Ended In millions Mar 31, 2020 Mar 31, 2019 Operating lease cost $ 5 $ 6 Short-term lease cost 6 7 Variable lease cost 2 — Total lease cost $ 13 $ 13 |
Schedule of Supplemental Cash Flow Information Related to Leases [Table Text Block] | Other Lease Information Three Months Ended In millions Mar 31, 2020 Mar 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 5 $ 6 |
Schedule of Lease Assets and Liabilities [Table Text Block] | The following table summarizes the lease-related assets and liabilities recorded in the consolidated balance sheets at March 31, 2020 and December 31, 2019: Lease Position Balance Sheet Classification Mar 31, 2020 Dec 31, 2019 In millions Right-of-use assets obtained in exchange for lease obligations: Operating leases 1 $ 3 $ 105 Assets Operating lease assets Operating lease right-of-use assets $ 86 $ 89 Finance lease assets Property 12 12 Finance lease amortization Accumulated depreciation (7) (6) Total lease assets $ 91 $ 95 Liabilities Current Operating Operating lease liabilities - current $ 15 $ 16 Finance Long-term debt due within one year 1 1 Noncurrent Operating Operating lease liabilities - noncurrent 72 74 Finance Long-Term Debt 4 5 Total lease liabilities $ 92 $ 96 1. Includes $99 million for the period ended December 31, 2019 related to the adoption of ASU 2016-02, "Leases (Topic 842)," and the associated ASUs, in the first quarter of 2019. |
Lease Terms and Discount Rates [Table Text Block] | Lease Term and Discount Rate Mar 31, 2020 Dec 31, 2019 Weighted-average remaining lease term Operating leases 6.4 years 6.3 years Finance leases 4.3 years 4.5 years Weighted-average discount rate Operating leases 4.13 % 4.13 % Finance leases 4.22 % 4.22 % |
Maturities of Lease Liabilities [Table Text Block] | The following table provides the maturities of lease liabilities at March 31, 2020: Maturities of Lease Liabilities Mar 31, 2020 Operating Leases Finance Leases In millions 2020 $ 13 $ 1 2021 16 2 2022 16 1 2023 14 1 2024 13 1 2025 and thereafter 27 — Total future undiscounted lease payments $ 99 $ 6 Less imputed interest 12 1 Total present value of lease liabilities $ 87 $ 5 |
AOCL (Tables)
AOCL (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Components of Other Comprehensive Income (Loss) | The changes in the balances for each component of accumulated other comprehensive loss ("AOCL") for the three months ended March 31, 2020 and 2019 were as follows: Accumulated Other Comprehensive Loss Three Months Ended In millions Mar 31, 2020 Mar 31, 2019 Cumulative Translation Adjustment Beginning balance $ (56) $ (57) Gains on foreign currency translation 3 — Ending balance $ (53) $ (57) Pension and Other Postretirement Benefits Beginning balance $ (1,609) $ (1,504) Amortization and recognition of net loss 1 26 19 Less: Tax expense (benefit) 2 (6) (4) Other comprehensive income, net of tax 20 15 Ending balance $ (1,589) $ (1,489) Total AOCL ending balance $ (1,642) $ (1,546) 1. These AOCL components are included in the computation of net periodic benefit cost of the Corporation's defined benefit pension and other postretirement benefit plans. See Note 10 for additional information. 2. Reclassified to "Provision for income taxes." |
Compensation Related Costs, Ret
Compensation Related Costs, Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Net Periodic Benefit Cost for All Significant Plans | The following table provides the components of the Corporation's net periodic benefit cost for all significant plans: Net Periodic Benefit Cost for All Significant Plans Three Months Ended In millions Mar 31, Mar 31, Defined Benefit Pension Plans: Service cost $ 9 $ 9 Interest cost 28 36 Expected return on plan assets (50) (53) Amortization of net loss 27 21 Net periodic benefit cost $ 14 $ 13 Other Postretirement Benefit Plan: Interest cost $ 1 $ 2 Amortization of net gain (1) (2) Net periodic benefit cost $ — $ — |
Fair Value Measures and Discl_2
Fair Value Measures and Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table summarizes the fair value of the Corporation's financial instruments at March 31, 2020 and December 31, 2019: Fair Value of Financial Instruments Mar 31, 2020 Dec 31, 2019 In millions Cost Gain Loss Fair Value Cost Gain Loss Fair Value Cash equivalents 1 $ 10 $ — $ — $ 10 $ 10 $ — $ — $ 10 Long-term debt including debt due within one year $ (473) $ — $ (51) $ (524) $ (474) $ — $ (115) $ (589) 1. Money market fund is included in "Cash and cash equivalents" in the consolidated balance sheets and held at amortized cost, which approximates fair value. |
BUSINESS SEPARATION (Details)
BUSINESS SEPARATION (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Feb. 15, 2019 | |
The Dow Chemical Company [Member] | ||
Related Party Transaction [Line Items] | ||
Dividends, Common Stock, Stock | $ 401 | |
Dividends, Paid-in-kind | $ 71 | |
Dow International Holdings Company [Member] | ||
Related Party Transaction [Line Items] | ||
Common Stock, Related Company | 1,067 |
Revenue from Contract with Cu_2
Revenue from Contract with Customer (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Revenue from External Customer [Line Items] | |||
Revenue, Percentage from Products and Services Transferred to Customers | 99.00% | 98.00% | |
Contract with Customer, Liability | $ 39 | $ 41 | |
Accrued Liabilities [Member] | |||
Revenue from External Customer [Line Items] | |||
Contract with Customer, Liability, Current | 3 | 4 | |
Other Noncurrent Liabilities [Member] | |||
Revenue from External Customer [Line Items] | |||
Contract with Customer, Liability, Noncurrent | $ 36 | $ 37 | |
Maximum [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |||
Revenue from External Customer [Line Items] | |||
Revenue, Performance Obligation, Description of Timing | 21 years |
INVENTORIES (Schedule of Invent
INVENTORIES (Schedule of Inventories) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 154 | $ 162 |
Work in process | 25 | 31 |
Raw materials | 47 | 47 |
Supplies | 90 | 92 |
Inventory, Gross | 316 | 332 |
Inventory Adjustments | 73 | 85 |
Total inventories | $ 243 | $ 247 |
INTANGIBLE ASSETS (Schedule of
INTANGIBLE ASSETS (Schedule of Amortization Expense of Intangible Assets) (Table and Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets, Gross | $ 113 | $ 112 |
Finite-Lived Intangible Assets, Accumulated Amortization | 92 | 90 |
Finite-Lived Intangible Assets, Net | 21 | 22 |
Licenses and developed technology [Member] | ||
Finite-Lived Intangible Assets, Gross | 33 | 33 |
Finite-Lived Intangible Assets, Accumulated Amortization | 33 | 33 |
Finite-Lived Intangible Assets, Net | 0 | 0 |
Software [Member] | ||
Finite-Lived Intangible Assets, Gross | 80 | 79 |
Finite-Lived Intangible Assets, Accumulated Amortization | 59 | 57 |
Finite-Lived Intangible Assets, Net | $ 21 | $ 22 |
INTANGIBLE ASSETS (Schedule o_2
INTANGIBLE ASSETS (Schedule of Future Amortization Expense of Intangible Assets) (Details) $ in Millions | Mar. 31, 2020USD ($) |
Estimated Amortization Expense, 2020 | $ 8 |
Estimated Amortization Expense, 2021 | 6 |
Estimated Amortization Expense, 2022 | 5 |
Estimated Amortization Expense, 2023 | 3 |
Estimated Amortization Expense, 2024 | 1 |
Estimated Amortization Expense, 2025 | $ 0 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Environmental Matters) (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Site Contingency [Line Items] | ||
Accrual for Environmental Loss Contingencies | $ 131 | $ 132 |
Super Fund Sites [Member] | ||
Site Contingency [Line Items] | ||
Accrual for Environmental Loss Contingencies | $ 18 | $ 20 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES (Asbestos-Related Matters of Union Carbide Corporation) (Table and Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | ||
Liability for Asbestos Claims and Defense Costs Gross | $ 1,148 | $ 1,165 |
Percentage of recorded asbestos liability related to pending claims | 19.00% | |
Percentage of recorded asbestos liability related to future claims | 81.00% |
LEASES (Details)
LEASES (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Operating Lease Cost | $ 5 | $ 6 | ||
Short-term Lease Cost | 6 | 7 | ||
Variable Lease, Cost | 2 | 0 | ||
Lease, Cost | 13 | 13 | ||
Operating cash flows for operating leases | 5 | $ 6 | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 99 | 3 | $ 105 | |
Operating lease right-of-use assets | 86 | 89 | ||
Finance Lease, Right-of-Use Asset | 12 | 12 | ||
Less accumulated depreciation | 5,922 | 5,878 | ||
Total Lease Assets | 91 | 95 | ||
Operating lease liabilities - current | 15 | 16 | ||
Finance Lease, Liability, Current | 1 | 1 | ||
Operating lease liabilities - noncurrent | 72 | 74 | ||
Finance Lease, Liability, Noncurrent | 4 | 5 | ||
Total Lease Liabilities | $ 92 | $ 96 | ||
Operating Lease, Weighted Average Remaining Lease Term | 6 years 4 months 24 days | 6 years 3 months 18 days | ||
Finance Lease, Weighted Average Remaining Lease Term | 4 years 3 months 18 days | 4 years 6 months | ||
Operating Lease, Weighted Average Discount Rate, Percent | 4.13% | 4.13% | ||
Finance Lease, Weighted Average Discount Rate, Percent | 4.22% | 4.22% | ||
Lessee, Operating Lease, Liability, Payments, Remainder of 2020 | $ 13 | |||
Finance Lease, Liability, Payments, Due 2020 | 1 | |||
Lessee, Operating Lease, Liability, Payments, Due 2021 | 16 | |||
Finance Lease, Liability, Payments, Due 2021 | 2 | |||
Lessee, Operating Lease, Liability, Payments, Due 2022 | 16 | |||
Finance Lease, Liability, Payments, Due 2022 | 1 | |||
Lessee, Operating Lease, Liability, Payments, Due 2023 | 14 | |||
Finance Lease, Liability, Payments, Due 2023 | 1 | |||
Lessee, Operating Lease, Liability, Payments, Due 2024 | 13 | |||
Finance Lease, Liability, Payments, Due 2024 | 1 | |||
Lessee, Operating Lease, Liability, Payments, Due 2025 and thereafter | 27 | |||
Finance Lease, Liability, Payments, Due 2025 and thereafter | 0 | |||
Lessee, Operating Lease, Liability, Payments, Due | 99 | |||
Finance Lease, Liability, Payment, Due | 6 | |||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 12 | |||
Finance Lease, Liability, Undiscounted Excess Amount | 1 | |||
Operating Lease, Liability | 87 | |||
Finance Lease, Liability | 5 | |||
Lessee, Additional Leases Not yet Commenced, Assumptions and Judgment, Amount | $ 16 | |||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 20 years | |||
finance leases [Member] | ||||
Less accumulated depreciation | $ 7 | $ 6 |
AOCL (Details)
AOCL (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | $ (1,642) | $ (1,546) | $ (1,665) | |
Other Comprehensive Income (Loss), Net of Tax | 23 | 15 | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | (53) | (57) | (56) | $ (57) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 3 | 0 | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | (1,589) | (1,489) | $ (1,609) | $ (1,504) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 26 | 19 | ||
Reclassification from AOCI, Current Period, Tax | (6) | (4) | ||
Other Comprehensive Income (Loss), Net of Tax | $ 20 | $ 15 |
PENSION PLANS AND OTHER POSTR_2
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Pension Plans [Member] | ||
Service cost | $ 9 | $ 9 |
Interest cost | 28 | 36 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 50 | 53 |
Defined Benefit Plan, Amortization of Gain (Loss) | (27) | (21) |
Net periodic benefit cost | 14 | 13 |
Other Postretirement Benefits [Member] | ||
Interest cost | 1 | 2 |
Defined Benefit Plan, Amortization of Gain (Loss) | 1 | 2 |
Net periodic benefit cost | $ 0 | $ 0 |
Fair Value Measures and Discl_3
Fair Value Measures and Disclosures (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Long-term Debt | $ (473) | $ (474) |
Long-term Debt, Fair Value | (524) | (589) |
Long-term Debt [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Financial Instruments Gross Unrealized Gains | 0 | 0 |
Financial Instruments Gross Unrealized Loss | (51) | (115) |
Money Market Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Cash Equivalents, at Carrying Value | 10 | 10 |
Financial Instruments Gross Unrealized Gains | 0 | 0 |
Financial Instruments Gross Unrealized Loss | 0 | 0 |
Cash Equivalents, Fair Value | $ 10 | $ 10 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Feb. 15, 2019 | |
Related Party Transaction [Line Items] | ||||
Payments of Dividends | $ 81 | $ 160 | ||
The Dow Chemical Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 231 | 334 | ||
Service Fee with Parent | 10.00% | |||
Notes Receivable, Related Parties | $ 1,500 | $ 1,500 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000 | |||
Line of Credit Facility, Remaining Borrowing Capacity | 936 | $ 937 | ||
Payments of Dividends | 81 | 160 | ||
Dividends, Paid-in-kind | 71 | |||
The Dow Chemical Company [Member] | Sundry income (expense) [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | 8 | 6 | ||
The Dow Chemical Company [Member] | Cost of Sales [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 23 | 23 | ||
Dow International Holdings Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Stock Dividend Ownership Interest Percentage, Related Company | 63.40% | |||
The Dow Chemical Company [Member] | Dow International Holdings Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Dividends, Common Stock, Stock | $ 401 |