Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 22, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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 | 2022 | |
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, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 61 | $ 34 |
Net sales to related companies | 1,518 | 969 |
Net trade sales | 1,579 | 1,003 |
Cost of sales | 1,215 | 1,037 |
Research and development expenses | 7 | 6 |
Selling, general and administrative expenses | 2 | 3 |
Sundry income (expense) - net | (14) | (15) |
Interest Income, Other | 1 | 1 |
Interest expense and amortization of debt discount | 7 | 7 |
Income before income taxes | 335 | (64) |
Provision for income taxes | 80 | (15) |
Net Income Attributable to Union Carbide Corporation | $ 255 | $ (49) |
Consolidated Statements of In_2
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Supplemental Income Statement Elements [Abstract] | ||
Depreciation | $ 42 | $ 41 |
Capital expenditures | $ 21 | $ 23 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) attributable to Union Carbide Corporation | $ 255 | $ (49) |
Cumulative translation adjustments | (2) | 0 |
Pension and other postretirement benefit plans | 19 | 84 |
Total other comprehensive income | 17 | 84 |
Comprehensive income attributable to Union Carbide Corporation | $ 272 | $ 35 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Cash and Cash Equivalents, at Carrying Value | $ 10 | $ 11 |
Trade (net of allowance for doubtful receivables 2020: $-; 2019: $-) | 52 | 49 |
Related companies | 1,228 | 1,394 |
Other | 23 | 29 |
Income taxes receivable | 305 | 306 |
Notes receivable from related companies | 1,150 | 988 |
Inventories | 253 | 250 |
Other current assets | 31 | 41 |
Total current assets | 3,052 | 3,068 |
Investments in related companies | 237 | 237 |
Other investments | 22 | 22 |
Noncurrent receivables | 86 | 83 |
Noncurrent receivables from related companies | 67 | 68 |
Total investments | 412 | 410 |
Property | 7,184 | 7,168 |
Less accumulated depreciation | 5,997 | 5,960 |
Net property | 1,187 | 1,208 |
Intangible assets (net of accumulated amortization 2020: $92; 2019: $90) | 12 | 13 |
Operating lease right-of-use assets | 117 | 122 |
Deferred Tax Assets, Deferred Income | 275 | 288 |
Deferred charges and other assets | 42 | 47 |
Total other assets | 446 | 470 |
Total Assets | 5,097 | 5,156 |
Notes payable - related companies | 33 | 30 |
Long-term debt due within one year | 3 | 3 |
Trade | 331 | 362 |
Related companies | 533 | 622 |
Other | 23 | 27 |
Operating lease liabilities - current | 20 | 20 |
Income taxes payable | 95 | 25 |
Asbestos-related liabilities - current | 90 | 85 |
Accrued and other current liabilities | 131 | 171 |
Total current liabilities | 1,259 | 1,345 |
Long-Term Debt | 391 | 392 |
Pension and other postretirement benefits - noncurrent | 468 | 491 |
Asbestos-related liabilities - noncurrent | 915 | 931 |
Operating lease liabilities - noncurrent | 98 | 103 |
Other noncurrent obligations | 255 | 230 |
Liabilities, Other than Long-term Debt, Noncurrent | 1,736 | 1,755 |
Common stock (authorized: 1,000 shares of $0.01 par value each; issued: 935.51 shares) | 0 | 0 |
Additional paid-in capital | 141 | 141 |
Retained earnings | 3,104 | 3,074 |
Accumulated other comprehensive loss | (1,534) | (1,551) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,711 | 1,664 |
Total Liabilities and Equity | $ 5,097 | $ 5,156 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parentheticals - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 0 | $ 0 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 104 | $ 103 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 935.51 | 935.51 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Cash Flows [Abstract] | ||
Net income (loss) attributable to Union Carbide Corporation | $ 255 | $ (49) |
Depreciation and amortization | 51 | 51 |
Provision (credit) for deferred income tax | 8 | (4) |
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | 0 | (1) |
Net periodic pension benefit cost | 2 | (1) |
Pension contributions | (1) | (547) |
Other Noncash Income | 0 | (1) |
Accounts and notes receivable | 3 | (6) |
Related company receivables | 4 | 594 |
Inventories | (3) | (34) |
Accounts payable | (35) | 19 |
Related company payables | (86) | 120 |
Asbestos-related payments | (11) | (18) |
Increase (Decrease) in Other Operating Assets and Liabilities, Net | 58 | (58) |
Cash provided by operating activities | 245 | 65 |
Capital expenditures | (21) | (23) |
Change in noncurrent receivable from related company | 1 | (2) |
Cash used for investing activities | (20) | (25) |
Dividends paid to parent | (225) | (40) |
Repayments of Long-term Debt | 1 | 0 |
Cash used for financing activities | (226) | (40) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect, Total | (1) | 0 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning Balance | 11 | 11 |
Cash and cash equivalents at end of period | $ 10 | $ 11 |
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 | $ 141 | $ 2,987 | $ (1,770) | |
Net income (loss) attributable to Union Carbide Corporation | $ (49) | (49) | |||
Dividends, Common Stock | (40) | ||||
Other Comprehensive Income (Loss), Net of Tax | (84) | 84 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,353 | 0 | 141 | 2,898 | (1,686) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,664 | 0 | 141 | 3,074 | (1,551) |
Net income (loss) attributable to Union Carbide Corporation | 255 | 255 | |||
Dividends, Common Stock | (225) | ||||
Other Comprehensive Income (Loss), Net of Tax | (17) | 17 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,711 | $ 0 | $ 141 | $ 3,104 | $ (1,534) |
CONSOLIDATED FINANCIAL STATEMEN
CONSOLIDATED FINANCIAL STATEMENTS | 3 Months Ended |
Mar. 31, 2022 | |
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, 2021 ("2021 10-K"). 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 separate 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. Intercompany transactions and balances are eliminated in consolidation. Transactions with the Corporation’s parent company, TDCC, and other subsidiaries of TDCC, have been reflected as related company transactions in the consolidated financial statements. See Note 10 for additional information. |
REVENUE FROM CONTRACT WITH CUST
REVENUE FROM CONTRACT WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2022 | |
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 of products, primarily to TDCC. Products are sold to and purchased from TDCC at prices determined in accordance with the terms of an agreement between UCC and TDCC. 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 18 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 at March 31, 2022 and December 31, 2021 was $35 million, of which $2 million was included in "Accrued and other current liabilities" and $33 million was included in "Other noncurrent obligations" in the consolidated balance sheets. The Corporation disaggregates its revenue from contracts with customers by type of customer (sales to related companies and sales to trade customers) as presented in the consolidated statements of income and believes this disaggregation best depicts the nature, amount, timing and uncertainty of its revenue and cash flows. Substantially all of the product sales are made to the Corporation's parent company, TDCC, and there are no unique economic factors that affect revenue recognition and cash flows associated with these product sales. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES The following table provides a breakdown of inventories: Inventories Mar 31, 2022 Dec 31, 2021 In millions Finished goods $ 238 $ 238 Work in process 46 33 Raw materials 63 59 Supplies 77 76 Total $ 424 $ 406 Adjustment of inventories to a LIFO basis (171) (156) Total inventories $ 253 $ 250 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022 Dec 31, 2021 In millions Gross Accum Amort Net Gross Accum Amort Net Intangible assets with finite lives: Developed technology $ 33 $ (33) $ — $ 33 $ (33) $ — Software 83 (71) 12 83 (70) 13 Total intangible assets $ 116 $ (104) $ 12 $ 116 $ (103) $ 13 Total estimated amortization expense for 2022 and the five succeeding fiscal years, including amounts expected to be capitalized, is as follows: Estimated Amortization Expense In millions 2022 $ 5 2023 $ 3 2024 $ 2 2025 $ 1 2026 $ 1 2027 $ — |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES DISCLOSURE | COMMITMENTS AND CONTINGENCIES A summary of the Corporation's commitments and contingencies can be found in Note 14 to the Consolidated Financial Statements included in the 2021 10-K, which is incorporated by reference herein. 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, 2022, the Corporation had accrued obligations of $177 million for probable environmental remediation and restoration costs ($148 million at December 31, 2021), including $23 million for the remediation of Superfund sites ($23 million at December 31, 2021). 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 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. During the first quarter of 2022, the Corporation recorded a pretax charge of $37 million, included in "Cost of sales" in the consolidated statements of income, related to environmental remediation at a number of current and historical locations. The charge primarily resulted from updated remediation estimates and scope changes on existing matters. Litigation Asbestos-Related Matters 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 actuarial study and determines whether a change in the estimate is warranted. Based on the Corporation's review of 2022 activity, it was determined that no adjustment to the accrual was required at March 31, 2022. The Corporation’s total asbestos-related liability for pending and future claims and defense and processing costs was $1,005 million at March 31, 2022 ($1,016 million at December 31, 2021), and was included in “Asbestos-related liabilities - current” and “Asbestos-related liabilities - noncurrent” in the consolidated balance sheets. At March 31, 2022, approximately 26 percent of the recorded claim liability related to pending claims and approximately 74 percent related to future claims. |
LEASES (Notes)
LEASES (Notes) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Lessee, Operating And Finance Leases | LEASES For additional information on the Corporation's leases, see Note 15 to the Consolidated Financial Statements included in th e 2021 10-K. The components of lease cost for operating and finance leases for the three months ended March 31, 2022 and 2021 were as follows: Lease Cost Three Months Ended In millions Mar 31, 2022 Mar 31, 2021 Operating lease cost $ 6 $ 5 Short-term lease cost 8 6 Variable lease cost 4 2 Amortization of right-of-use assets - finance 1 — Total lease cost $ 19 $ 13 The following table provides supplemental cash flow information related to leases: Other Lease Information Three Months Ended In millions Mar 31, 2022 Mar 31, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 6 $ 5 Financing cash flows for finance leases $ 1 $ — The following table summarizes the lease-related assets and liabilities recorded in the consolidated balance sheets at March 31, 2022 and December 31, 2021: Lease Position Balance Sheet Classification Mar 31, 2022 Dec 31, 2021 In millions Assets Operating lease assets Operating lease right-of-use assets $ 117 $ 122 Finance lease assets Property 19 19 Finance lease amortization Accumulated depreciation (12) (11) Total lease assets $ 124 $ 130 Liabilities Current Operating Operating lease liabilities - current $ 20 $ 20 Finance Long-term debt due within one year 3 3 Noncurrent Operating Operating lease liabilities - noncurrent 98 103 Finance Long-term debt 5 6 Total lease liabilities $ 126 $ 132 The weighted-average remaining lease term and discount rate for leases recorded in the consolidated balance sheets at March 31, 2022 and December 31, 2021 are provided below: Lease Term and Discount Rate Mar 31, 2022 Dec 31, 2021 Weighted-average remaining lease term Operating leases 6.9 years 7.1 years Finance leases 2.9 years 3.1 years Weighted-average discount rate Operating leases 3.20 % 3.17 % Finance leases 2.60 % 2.53 % The following table provides the maturities of lease liabilities at March 31, 2022: Maturities of Lease Liabilities Mar 31, 2022 Operating Leases Finance Leases In millions 2022 $ 18 $ 2 2023 22 3 2024 22 2 2025 20 1 2026 19 — 2027 and thereafter 30 — Total future undiscounted lease payments $ 131 $ 8 Less: Imputed interest 13 — Total present value of lease liabilities $ 118 $ 8 |
AOCL
AOCL | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022 and 2021 were as follows: Accumulated Other Comprehensive Loss Three Months Ended In millions Mar 31, 2022 Mar 31, 2021 Cumulative Translation Adjustment Beginning balance $ (53) $ (55) Unrealized gains (losses) on foreign currency translation (2) — Ending balance $ (55) $ (55) Pension and Other Postretirement Benefits Beginning balance $ (1,498) $ (1,715) Gains (losses) arising during the period 1 — 87 Tax (expense) benefit — (20) Net gains (losses) arising during the period — 67 Amortization of net loss reclassified from AOCL to net income (loss) 2 25 22 Tax expense (benefit) 3 (6) (5) Net loss reclassified from AOCL to net income (loss) 19 17 Other comprehensive income (loss), net of tax 19 84 Ending balance $ (1,479) $ (1,631) Total AOCL ending balance $ (1,534) $ (1,686) 1. The 2021 impact relates to an interim remeasurement of U.S. pension plans due to the announced freeze of plan benefits in the first quarter of 2021. 2. These AOCL components are included in the computation of net periodic benefit cost (credit) of the Corporation's defined benefit pension and other postretirement benefit plans. See Note 8 for additional information. 3. Reclassified to "Provision (credit) for income taxes." |
PENSION PLANS AND OTHER POSTRET
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | 3 Months Ended |
Mar. 31, 2022 | |
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 2021 10-K. The following table provides the components of the Corporation's net periodic benefit cost (credit) for all significant plans: Net Periodic Benefit Cost (Credit) for All Significant Plans Three Months Ended In millions Mar 31, 2022 Mar 31, 2021 Defined Benefit Pension Plans Service cost $ 9 $ 8 Interest cost 23 19 Expected return on plan assets (57) (51) Amortization of net loss 27 30 Curtailment gain — (7) Net periodic benefit cost (credit) $ 2 $ (1) Other Postretirement Benefit Plan Interest cost $ 1 $ 1 Amortization of net gain (2) (1) Net periodic benefit cost (credit) $ (1) $ — Net periodic benefit cost (credit), other than the service cost component, is included in "Sundry income (expense) - net" in the consolidated statements of income. |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures | 3 Months Ended |
Mar. 31, 2022 | |
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 and quality checks. The following table summarizes the fair value of the Corporation's financial instruments at March 31, 2022 and December 31, 2021: Fair Value of Financial Instruments Mar 31, 2022 Dec 31, 2021 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 $ (394) $ — $ (87) $ (481) $ (395) $ — $ (133) $ (528) 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, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS DISCLOSURE | RELATED PARTY TRANSACTIONS A summary of the Corporation's related party transactions can be found in Note 19 to the Consolidated Financial Statements included in the 2021 10-K . Product and Services Agreements The following table summarizes UCC’s transactions with TDCC and a TDCC subsidiary related to product and services agreements for the three months ended March 31, 2022 and 2021: Product and Services Agreements Transactions Three Months Ended Mar 31, 2022 Mar 31, 2021 Income Statement Classification In millions TDCC Subsidiary: Commodity and raw materials purchases 1 $ 505 $ 483 Cost of sales Commission expense $ 5 $ 6 Sundry income (expense) - net TDCC: General administrative and overhead type services and service fee $ 16 $ 17 Sundry income (expense) - net Activity-based costs $ 20 $ 19 Cost of sales 1. Period-end balances on hand are included in inventory. The increase in purchase costs was primarily due to higher feedstock costs. Dividends The following table summarizes cash dividends declared and paid to TDCC for the three months ended March 31, 2022 and 2021: Cash Dividends Declared and Paid Three Months Ended Mar 31, 2022 Mar 31, 2021 In millions Cash dividends declared and paid $ 225 $ 40 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | The following table provides a breakdown of inventories: Inventories Mar 31, 2022 Dec 31, 2021 In millions Finished goods $ 238 $ 238 Work in process 46 33 Raw materials 63 59 Supplies 77 76 Total $ 424 $ 406 Adjustment of inventories to a LIFO basis (171) (156) Total inventories $ 253 $ 250 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | The following table provides information regarding the Corporation’s intangible assets: Intangible Assets Mar 31, 2022 Dec 31, 2021 In millions Gross Accum Amort Net Gross Accum Amort Net Intangible assets with finite lives: Developed technology $ 33 $ (33) $ — $ 33 $ (33) $ — Software 83 (71) 12 83 (70) 13 Total intangible assets $ 116 $ (104) $ 12 $ 116 $ (103) $ 13 |
Schedule of Expected Amortization Expense [Table Text Block] | Total estimated amortization expense for 2022 and the five succeeding fiscal years, including amounts expected to be capitalized, is as follows: Estimated Amortization Expense In millions 2022 $ 5 2023 $ 3 2024 $ 2 2025 $ 1 2026 $ 1 2027 $ — |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease cost for operating and finance leases for the three months ended March 31, 2022 and 2021 were as follows: Lease Cost Three Months Ended In millions Mar 31, 2022 Mar 31, 2021 Operating lease cost $ 6 $ 5 Short-term lease cost 8 6 Variable lease cost 4 2 Amortization of right-of-use assets - finance 1 — Total lease cost $ 19 $ 13 |
Schedule of Supplemental Cash Flow Information Related to Leases [Table Text Block] | The following table provides supplemental cash flow information related to leases: Other Lease Information Three Months Ended In millions Mar 31, 2022 Mar 31, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 6 $ 5 Financing cash flows for finance leases $ 1 $ — |
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, 2022 and December 31, 2021: Lease Position Balance Sheet Classification Mar 31, 2022 Dec 31, 2021 In millions Assets Operating lease assets Operating lease right-of-use assets $ 117 $ 122 Finance lease assets Property 19 19 Finance lease amortization Accumulated depreciation (12) (11) Total lease assets $ 124 $ 130 Liabilities Current Operating Operating lease liabilities - current $ 20 $ 20 Finance Long-term debt due within one year 3 3 Noncurrent Operating Operating lease liabilities - noncurrent 98 103 Finance Long-term debt 5 6 Total lease liabilities $ 126 $ 132 |
Lease Terms and Discount Rates [Table Text Block] | The weighted-average remaining lease term and discount rate for leases recorded in the consolidated balance sheets at March 31, 2022 and December 31, 2021 are provided below: Lease Term and Discount Rate Mar 31, 2022 Dec 31, 2021 Weighted-average remaining lease term Operating leases 6.9 years 7.1 years Finance leases 2.9 years 3.1 years Weighted-average discount rate Operating leases 3.20 % 3.17 % Finance leases 2.60 % 2.53 % |
Maturities of Lease Liabilities [Table Text Block] | The following table provides the maturities of lease liabilities at March 31, 2022: Maturities of Lease Liabilities Mar 31, 2022 Operating Leases Finance Leases In millions 2022 $ 18 $ 2 2023 22 3 2024 22 2 2025 20 1 2026 19 — 2027 and thereafter 30 — Total future undiscounted lease payments $ 131 $ 8 Less: Imputed interest 13 — Total present value of lease liabilities $ 118 $ 8 |
AOCL (Tables)
AOCL (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022 and 2021 were as follows: Accumulated Other Comprehensive Loss Three Months Ended In millions Mar 31, 2022 Mar 31, 2021 Cumulative Translation Adjustment Beginning balance $ (53) $ (55) Unrealized gains (losses) on foreign currency translation (2) — Ending balance $ (55) $ (55) Pension and Other Postretirement Benefits Beginning balance $ (1,498) $ (1,715) Gains (losses) arising during the period 1 — 87 Tax (expense) benefit — (20) Net gains (losses) arising during the period — 67 Amortization of net loss reclassified from AOCL to net income (loss) 2 25 22 Tax expense (benefit) 3 (6) (5) Net loss reclassified from AOCL to net income (loss) 19 17 Other comprehensive income (loss), net of tax 19 84 Ending balance $ (1,479) $ (1,631) Total AOCL ending balance $ (1,534) $ (1,686) 1. The 2021 impact relates to an interim remeasurement of U.S. pension plans due to the announced freeze of plan benefits in the first quarter of 2021. 2. These AOCL components are included in the computation of net periodic benefit cost (credit) of the Corporation's defined benefit pension and other postretirement benefit plans. See Note 8 for additional information. 3. Reclassified to "Provision (credit) for income taxes." |
PENSION PLANS AND OTHER POSTR_2
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 (credit) for all significant plans: Net Periodic Benefit Cost (Credit) for All Significant Plans Three Months Ended In millions Mar 31, 2022 Mar 31, 2021 Defined Benefit Pension Plans Service cost $ 9 $ 8 Interest cost 23 19 Expected return on plan assets (57) (51) Amortization of net loss 27 30 Curtailment gain — (7) Net periodic benefit cost (credit) $ 2 $ (1) Other Postretirement Benefit Plan Interest cost $ 1 $ 1 Amortization of net gain (2) (1) Net periodic benefit cost (credit) $ (1) $ — |
Fair Value Measures and Discl_2
Fair Value Measures and Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022 and December 31, 2021: Fair Value of Financial Instruments Mar 31, 2022 Dec 31, 2021 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 $ (394) $ — $ (87) $ (481) $ (395) $ — $ (133) $ (528) 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. |
Related Party Disclosures (Tabl
Related Party Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table summarizes UCC’s transactions with TDCC and a TDCC subsidiary related to product and services agreements for the three months ended March 31, 2022 and 2021: Product and Services Agreements Transactions Three Months Ended Mar 31, 2022 Mar 31, 2021 Income Statement Classification In millions TDCC Subsidiary: Commodity and raw materials purchases 1 $ 505 $ 483 Cost of sales Commission expense $ 5 $ 6 Sundry income (expense) - net TDCC: General administrative and overhead type services and service fee $ 16 $ 17 Sundry income (expense) - net Activity-based costs $ 20 $ 19 Cost of sales 1. Period-end balances on hand are included in inventory. The increase in purchase costs was primarily due to higher feedstock costs. |
Dividends Declared | The following table summarizes cash dividends declared and paid to TDCC for the three months ended March 31, 2022 and 2021: Cash Dividends Declared and Paid Three Months Ended Mar 31, 2022 Mar 31, 2021 In millions Cash dividends declared and paid $ 225 $ 40 |
Revenue from Contract with Cu_2
Revenue from Contract with Customer (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Revenue from External Customer [Line Items] | ||
Contract with Customer, Liability | $ 35 | $ 35 |
Accrued Liabilities [Member] | ||
Revenue from External Customer [Line Items] | ||
Contract with Customer, Liability, Current | 2 | 2 |
Other Noncurrent Liabilities [Member] | ||
Revenue from External Customer [Line Items] | ||
Contract with Customer, Liability, Noncurrent | $ 33 | $ 33 |
Maximum [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue, Performance Obligation, Description of Timing | 18 years |
INVENTORIES (Schedule of Invent
INVENTORIES (Schedule of Inventories) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 238 | $ 238 |
Work in process | 46 | 33 |
Raw materials | 63 | 59 |
Supplies | 77 | 76 |
Inventory, Gross | 424 | 406 |
Inventory Adjustments | (171) | (156) |
Total inventories | $ 253 | $ 250 |
INTANGIBLE ASSETS (Schedule of
INTANGIBLE ASSETS (Schedule of Amortization Expense of Intangible Assets) (Table and Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Gross | $ 116 | $ 116 |
Finite-Lived Intangible Assets, Accumulated Amortization | (104) | (103) |
Finite-Lived Intangible Assets, Net | 12 | 13 |
Developed Technology Rights | ||
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 | 83 | 83 |
Finite-Lived Intangible Assets, Accumulated Amortization | (71) | (70) |
Finite-Lived Intangible Assets, Net | $ 12 | $ 13 |
INTANGIBLE ASSETS (Schedule o_2
INTANGIBLE ASSETS (Schedule of Future Amortization Expense of Intangible Assets) (Details) $ in Millions | Mar. 31, 2022USD ($) |
Finite-Lived Intangible Asset, Expected Amortization, Year One | $ 5 |
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 3 |
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 2 |
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 1 |
Finite-Lived Intangible Asset, Expected Amortization, Year Five | 1 |
Finite-Lived Intangible Asset, Expected Amortization, after Year Five | $ 0 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Environmental Matters) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Site Contingency [Line Items] | ||
Accrual for Environmental Loss Contingencies | $ 177 | $ 148 |
Accrual for Environmental Loss Contingencies, Revision in Estimates | 37 | |
Super Fund Sites [Member] | ||
Site Contingency [Line Items] | ||
Accrual for Environmental Loss Contingencies | $ 23 | $ 23 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Asbestos-Related Matters of Union Carbide Corporation) (Table and Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Loss Contingencies [Line Items] | ||
Liability for Asbestos and Environmental Claims, Gross | $ 1,005 | $ 1,016 |
Percentage of recorded asbestos liability related to pending claims | 26.00% | |
Percentage of recorded asbestos liability related to future claims | 74.00% |
LEASES COSTS AND OTHER INFORMAT
LEASES COSTS AND OTHER INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Lease Cost | $ 6 | $ 5 |
Short-term Lease Cost | 8 | 6 |
Variable Lease, Cost | 4 | 2 |
Finance Lease, Right-of-Use Asset, Amortization | 1 | 0 |
Lease, Cost | 19 | 13 |
Operating cash flows for operating leases | 6 | 5 |
Finance Lease, Principal Payments | $ 1 | $ 0 |
LEASES POSITION (Details)
LEASES POSITION (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Operating lease right-of-use assets | $ 117 | $ 122 |
Total Lease Assets | 124 | 130 |
Operating lease liabilities - current | 20 | 20 |
Finance Lease, Liability, Current | 3 | 3 |
Operating lease liabilities - noncurrent | 98 | 103 |
Finance Lease, Liability, Noncurrent | 5 | 6 |
Total Lease Liabilities | 126 | 132 |
Property, Plant and Equipment | ||
Finance Lease, Right-of-Use Asset, before Accumulated Amortization | 19 | 19 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | ||
Finance Lease, Right-of-Use Asset, Accumulated Amortization | $ (12) | $ (11) |
LEASES TERM AND DISCOUNT (Detai
LEASES TERM AND DISCOUNT (Details) | Mar. 31, 2022 | Dec. 31, 2021 |
Operating Lease, Weighted Average Remaining Lease Term | 6 years 10 months 24 days | 7 years 1 month 6 days |
Finance Lease, Weighted Average Remaining Lease Term | 2 years 10 months 24 days | 3 years 1 month 6 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.20% | 3.17% |
Finance Lease, Weighted Average Discount Rate, Percent | 2.60% | 2.53% |
LEASE MATURITIES (Details)
LEASE MATURITIES (Details) $ in Millions | Mar. 31, 2022USD ($) |
Lessee, Operating Lease, Liability, Payments, Remainder of 2022 | $ 18 |
Lessee, Operating Lease, Liability, Payments, Due 2023 | 22 |
Lessee, Operating Lease, Liability, Payments, Due 2024 | 22 |
Lessee, Operating Lease, Liability, Payments, Due 2025 | 20 |
Lessee, Operating Lease, Liability, Payments, Due 2026 | 19 |
Lessee, Operating Lease, Liability, Payments, Due 2027 and thereafter | 30 |
Lessee, Operating Lease, Liability, to be Paid, Total | 131 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 13 |
Operating Lease, Liability | 118 |
Finance Lease, Liability, Payments, Due 2022 | 2 |
Finance Lease, Liability, Payments, Due 2023 | 3 |
Finance Lease, Liability, Payments, Due 2024 | 2 |
Finance Lease, Liability, Payments, Due 2025 | 1 |
Finance Lease, Liability, Payments, Due 2026 | 0 |
Finance Lease, Liability, Payments, Due 2027 and thereafter | 0 |
Finance Lease, Liability, Payment, Due, Total | 8 |
Finance Lease, Liability, Undiscounted Excess Amount | 0 |
Finance Lease, Liability | $ 8 |
AOCL (Details)
AOCL (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | $ (1,534) | $ (1,686) | $ (1,551) | |
Other Comprehensive Income (Loss), Net of Tax | (17) | (84) | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | (55) | (55) | (53) | $ (55) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (2) | 0 | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | (1,479) | (1,631) | $ (1,498) | $ (1,715) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 67 | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0 | 87 | ||
Other Comprehensive Income (Loss) before Reclassifications, Tax | 0 | (20) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 25 | 22 | ||
Reclassification from AOCI, Current Period, Tax | (6) | (5) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 19 | 17 | ||
Other Comprehensive Income (Loss), Net of Tax | $ 19 | $ 84 |
PENSION PLANS AND OTHER POSTR_3
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Defined Benefit Pension Plans [Member] | ||
Service cost | $ 9 | $ 8 |
Interest cost | 23 | 19 |
Expected return on plan assets | 57 | 51 |
Defined Benefit Plan, Amortization of Gain (Loss) | (27) | (30) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | 0 | 7 |
Net periodic benefit cost (credit) | 2 | (1) |
Other Postretirement Benefits [Member] | ||
Interest cost | 1 | 1 |
Defined Benefit Plan, Amortization of Gain (Loss) | 2 | 1 |
Net periodic benefit cost (credit) | $ (1) | $ 0 |
Fair Value Measures and Discl_3
Fair Value Measures and Disclosures (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Long-term Debt | $ (394) | $ (395) |
Long-term Debt, Fair Value | (481) | (528) |
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 | (87) | (133) |
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, 2022 | Mar. 31, 2021 | |
Related Party Transaction [Line Items] | ||
Payments of Dividends | $ 225 | $ 40 |
The Dow Chemical Company [Member] | ||
Related Party Transaction [Line Items] | ||
Payments of Dividends | 225 | 40 |
Commodity And Raw Material Purchases | Cost of Sales [Member] | The Dow Chemical Company [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Expenses from Transactions with Related Party | 505 | 483 |
Net Commission Expense | Sundry Income (Expense), Net [Member] | The Dow Chemical Company [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Expenses from Transactions with Related Party | 5 | 6 |
General and Administrative Expense | Sundry Income (Expense), Net [Member] | The Dow Chemical Company [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Expenses from Transactions with Related Party | 16 | 17 |
Activity Based Costs | Cost of Sales [Member] | The Dow Chemical Company [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Expenses from Transactions with Related Party | $ 20 | $ 19 |