Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 26, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
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 | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Title of 12(b) Security | None |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 27 | $ 42 | $ 64 | $ 103 |
Net sales to related companies | 1,138 | 1,426 | 2,176 | 2,944 |
Net trade sales | 1,165 | 1,468 | 2,240 | 3,047 |
Cost of sales | 925 | 1,309 | 1,906 | 2,524 |
Research and development expenses | 5 | 7 | 11 | 14 |
Selling, general and administrative expenses | 4 | 2 | 6 | 4 |
Restructuring and asset related charges - net | 0 | 0 | 14 | 0 |
Sundry income (expense) - net | (23) | (14) | (45) | (28) |
Interest Income, Other | 9 | 2 | 20 | 3 |
Interest expense and amortization of debt discount | 4 | 7 | 10 | 14 |
Income before income taxes | 213 | 131 | 268 | 466 |
Provision for income taxes | 46 | 30 | 56 | 110 |
Net Income Attributable to Union Carbide Corporation | $ 167 | $ 101 | $ 212 | $ 356 |
Consolidated Statements of In_2
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Supplemental Income Statement Elements [Abstract] | ||||
Depreciation | $ 38 | $ 41 | $ 76 | $ 83 |
Capital expenditures | $ 62 | $ 29 | $ 120 | $ 50 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income attributable to Union Carbide Corporation | $ 167 | $ 101 | $ 212 | $ 356 |
Cumulative translation adjustments | 1 | 2 | 2 | 0 |
Pension and other postretirement benefit plans | 10 | 19 | 19 | 38 |
Total other comprehensive income | 11 | 21 | 21 | 38 |
Comprehensive income attributable to Union Carbide Corporation | $ 178 | $ 122 | $ 233 | $ 394 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Cash and Cash Equivalents, at Carrying Value | $ 10 | $ 10 |
Trade (net of allowance for doubtful receivables 2020: $-; 2019: $-) | 28 | 40 |
Accounts Receivable from Related Companies | 895 | 766 |
Other | 23 | 24 |
Income taxes receivable | 210 | 211 |
Notes receivable from related companies | 644 | 958 |
Inventories | 264 | 256 |
Other current assets | 38 | 38 |
Total current assets | 2,112 | 2,303 |
Investments in related companies | 237 | 237 |
Other investments | 16 | 23 |
Noncurrent receivables | 93 | 91 |
Noncurrent receivables from related companies | 58 | 61 |
Total investments | 404 | 412 |
Property | 7,210 | 7,104 |
Less accumulated depreciation | 5,989 | 5,922 |
Net property | 1,221 | 1,182 |
Intangible assets (net of accumulated amortization 2020: $92; 2019: $90) | 8 | 9 |
Operating lease right-of-use assets | 109 | 107 |
Deferred Tax Assets, Deferred Income | 236 | 239 |
Deferred charges and other assets | 36 | 37 |
Total other assets | 389 | 392 |
Total Assets | 4,126 | 4,289 |
Notes payable to related companies | 58 | 51 |
Notes Payable - Other | 4 | 4 |
Long-term debt due within one year | 4 | 132 |
Trade | 293 | 284 |
Accounts Payable to Related Company | 375 | 411 |
Other | 16 | 16 |
Operating lease liabilities - current | 22 | 21 |
Income taxes payable | 71 | 33 |
Asbestos-related liabilities - current | 85 | 90 |
Accrued and other current liabilities | 141 | 145 |
Total current liabilities | 1,069 | 1,187 |
Long-Term Debt | 260 | 262 |
Pension and other postretirement benefits - noncurrent | 285 | 298 |
Asbestos-related liabilities - noncurrent | 819 | 857 |
Operating lease liabilities - noncurrent | 87 | 87 |
Other noncurrent obligations | 279 | 254 |
Liabilities, Other than Long-term Debt, Noncurrent | 1,470 | 1,496 |
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 | 2,567 | 2,605 |
Accumulated other comprehensive loss | (1,381) | (1,402) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,327 | 1,344 |
Total Liabilities and Equity | $ 4,126 | $ 4,289 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parentheticals - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 0 | $ 0 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 102 | $ 100 |
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 | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Cash Flows [Abstract] | ||
Net income attributable to Union Carbide Corporation | $ 212 | $ 356 |
Depreciation and amortization | 88 | 101 |
Provision (credit) for deferred income tax | (3) | 8 |
Net gain on sales of property and investments | 1 | 0 |
Restructuring and asset related charges - net | 14 | 0 |
Net periodic pension benefit cost | 19 | 4 |
Pension contributions | (1) | (1) |
Other Noncash Income (Expense) | 1 | 1 |
Accounts and notes receivable | 13 | (5) |
Related company receivables | 185 | (18) |
Inventories | (8) | (40) |
Accounts payable | 9 | 48 |
Related company payables | (29) | 64 |
Asbestos-related payments | (43) | (39) |
Increase (Decrease) in Other Operating Assets and Liabilities, Net | 36 | 93 |
Cash provided by operating activities | 490 | 570 |
Capital expenditures | (120) | (50) |
Change in noncurrent receivable from related company | 3 | 1 |
Proceeds from Sales of Business, Affiliate and Productive Assets | 1 | 0 |
Proceeds from sales of investments | 7 | 0 |
Cash used for investing activities | (109) | (49) |
Dividends paid to parent | (250) | (521) |
Repayments of Long-term Debt | 131 | 1 |
Cash used for financing activities | (381) | (522) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect, Total | 0 | (1) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning Balance | 10 | 11 |
Cash and cash equivalents at end of period | $ 10 | $ 10 |
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 | $ 3,074 | $ (1,551) | |
Net income attributable to Union Carbide Corporation | $ 356 | 356 | |||
Dividends, Common Stock | (521) | ||||
Other Comprehensive Income (Loss), Net of Tax | (38) | 38 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 0 | 141 | 3,104 | (1,534) | |
Net income attributable to Union Carbide Corporation | 101 | 101 | |||
Dividends, Common Stock | (296) | ||||
Other Comprehensive Income (Loss), Net of Tax | (21) | 21 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,537 | 0 | 141 | 2,909 | (1,513) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,344 | 0 | 141 | 2,605 | (1,402) |
Net income attributable to Union Carbide Corporation | 212 | 212 | |||
Dividends, Common Stock | (250) | ||||
Other Comprehensive Income (Loss), Net of Tax | (21) | 21 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 0 | 141 | 2,515 | (1,392) | |
Net income attributable to Union Carbide Corporation | 167 | 167 | |||
Dividends, Common Stock | (115) | ||||
Other Comprehensive Income (Loss), Net of Tax | (11) | 11 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,327 | $ 0 | $ 141 | $ 2,567 | $ (1,381) |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | CONSOLIDATED FINANCIAL STATEMENTS Basis of 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 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, 2022 ("2022 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. TDCC conducts its worldwide operations through global businesses. The Corporation’s business activities comprise components of TDCC’s global operations rather than stand-alone operations. 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 12 for additional information. |
RECENT ACCOUNTING GUIDANCE
RECENT ACCOUNTING GUIDANCE | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Standards Update and Change in Accounting Principle | RECENT ACCOUNTING GUIDANCERecently Adopted Accounting GuidanceIn the first quarter of 2023, the Corporation adopted the interim period disclosure requirements of Accounting Standards Update ("ASU") 2022-04, "Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations." The ASU, issued in September 2022, requires disclosures intended to enhance the transparency of supplier finance programs. Specifically, the amendments require buyers in a supplier finance program to disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period and potential magnitude. The amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for disclosure of rollforward information, which is required to be disclosed annually and is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The amendments should be applied retrospectively to each period in which a balance sheet is presented, except for disclosure of rollforward information, which should be applied prospectively. The Corporation expects to early adopt the annual requirement to disclose rollforward information prospectively beginning in the 2023 annual financial statements. See Note 6 for disclosures related to the Corporation's supplier finance program. |
REVENUE FROM CONTRACT WITH CUST
REVENUE FROM CONTRACT WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 2023 | |
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 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 17 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 $32 million at June 30, 2023 ($33 million at December 31, 2022), of which $2 million ($2 million at December 31, 2022) was included in "Accrued and other current liabilities" and $30 million ($31 million at December 31, 2022) was included in "Other noncurrent obligations" in the consolidated balance sheets. The Corporation disaggregates its revenue from contracts with customers by type of customer (net sales to related companies and net 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. |
Restructuring and Related Activ
Restructuring and Related Activities | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure | RESTRUCTURING AND ASSET RELATED CHARGES - NET 2023 Restructuring Program In the first quarter of 2023, the Corporation initiated restructuring actions to achieve its structural cost improvement initiatives in response to the continued economic impact from the global recessionary environment and to enhance its agility and long-term competitiveness across the economic cycle. The program includes workforce cost reductions and actions to rationalize the Corporation's manufacturing assets, which includes asset write-down and write-off charges. As a result of these actions, the Corporation recorded pretax restructuring charges of $14 million, included in "Restructuring and asset related charges - net" in the consolidated statements of income. The charges consisted of severance and related benefit costs of $12 million and asset write-downs and write-offs of $2 million. These actions are expected to be substantially complete by the end of 2024. The Corporation paid $2 million for severance and related benefit costs through June 30, 2023. At June 30, 2023, a liability for severance and related benefit costs of $8 million was included in "Accrued and other current liabilities" and $2 million was included in "Other noncurrent obligations" in the consolidated balance sheets. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES The following table provides a breakdown of inventories: Inventories Jun 30, 2023 Dec 31, 2022 In millions Finished goods $ 205 $ 218 Work in process 29 37 Raw materials 67 76 Supplies 95 87 Total $ 396 $ 418 Adjustment of inventories to the LIFO basis (132) (162) Total inventories $ 264 $ 256 |
Supplier Finance Program
Supplier Finance Program | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Supplier Finance Program | SUPPLIER FINANCE PROGRAMThe Corporation is a party to a supply chain financing (“SCF”) program, facilitated by TDCC, which can be used in the ordinary course of business to extend payment terms with the Corporation's vendors. Under the terms of this program, a vendor can voluntarily enter into an agreement with a participating financial intermediary to sell its receivables due from the Corporation. The vendor receives payment from the financial intermediary, and the Corporation pays the financial intermediary on the terms originally negotiated with the vendor, which generally range from 90 to 120 days. The vendor negotiates the terms of the agreements directly with the financial intermediary and the Corporation is not a party to that agreement. The financial intermediary may allow the participating vendor to utilize TDCC's creditworthiness in establishing credit spreads and associated costs, which may provide the vendor with more favorable terms than they would be able to secure on their own. Neither TDCC nor the Corporation provide guarantees related to the SCF program. At June 30, 2023, outstanding obligations confirmed as valid under the SCF program were $30 million ($29 million at December 31, 2022), included in “Accounts payable – Trade” in the consolidated balance sheets. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2023 | |
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 13 to the Consolidated Financial Statements included in the 2022 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 June 30, 2023, the Corporation had accrued obligations of $202 million for probable environmental remediation and restoration costs ($183 million at December 31, 2022), including $39 million for the remediation of Superfund sites ($36 million at December 31, 2022). 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 asbestos-related 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 2023 activity, it was determined that no adjustment to the accrual was required at June 30, 2023. The Corporation’s total asbestos-related liability for pending and future claims and defense and processing costs was $904 million at June 30, 2023 ($947 million at December 31, 2022), and was included in “Asbestos-related liabilities - current” and “Asbestos-related liabilities - noncurrent” in the consolidated balance sheets. At June 30, 2023, approximately 26 percent of the recorded claim liability related to pending claims and approximately 74 percent related to future claims. |
LEASES (Notes)
LEASES (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Lessee, Operating And Finance Leases | LEASES For additional information on the Corporation's leases, see Note 14 to the Consolidated Financial Statements included in th e 2022 10-K. The components of lease cost for operating and finance leases for the three and six months ended June 30, 2023 and 2022 were as follows: Lease Cost Three Months Ended Six Months Ended In millions Jun 30, 2023 Jun 30, 2022 Jun 30, 2023 Jun 30, 2022 Operating lease cost $ 7 $ 6 $ 13 $ 12 Short-term lease cost 11 8 21 16 Variable lease cost 5 5 12 9 Amortization of right-of-use assets - finance 1 — 2 1 Total lease cost $ 24 $ 19 $ 48 $ 38 |
AOCL
AOCL | 6 Months Ended |
Jun. 30, 2023 | |
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 and six months ended June 30, 2023 and 2022 were as follows: Accumulated Other Comprehensive Loss Three Months Ended Six Months Ended In millions Jun 30, 2023 Jun 30, 2022 Jun 30, 2023 Jun 30, 2022 Cumulative Translation Adjustment Beginning balance $ (53) $ (55) $ (54) $ (53) Unrealized gains (losses) on foreign currency translation 1 2 2 — Ending balance $ (52) $ (53) $ (52) $ (53) Pension and Other Postretirement Benefits Beginning balance $ (1,339) $ (1,479) $ (1,348) $ (1,498) Amortization of net loss and prior service credit reclassified from AOCL to net income 1 13 24 25 49 Tax expense (benefit) 2 (3) (5) (6) (11) Net loss and prior service credit reclassified from AOCL to net income 10 19 19 38 Ending balance $ (1,329) $ (1,460) $ (1,329) $ (1,460) Total AOCL ending balance $ (1,381) $ (1,513) $ (1,381) $ (1,513) 1. 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 10 for additional information. 2. Reclassified to "Provision for income taxes." |
PENSION PLANS AND OTHER POSTRET
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | 6 Months Ended |
Jun. 30, 2023 | |
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 16 to the Consolidated Financial Statements included in the 2022 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 Six Months Ended In millions Jun 30, 2023 Jun 30, 2022 Jun 30, 2023 Jun 30, 2022 Defined Benefit Pension Plans Service cost $ 8 $ 9 $ 17 $ 18 Interest cost 37 23 74 46 Expected return on plan assets (52) (56) (104) (113) Amortization of prior service credit — (1) — (1) Amortization of net loss 16 27 32 54 Net periodic benefit cost $ 9 $ 2 $ 19 $ 4 Other Postretirement Benefit Plan Interest cost $ 1 $ 1 $ 3 $ 2 Amortization of net gain (3) (2) (7) (4) Net periodic benefit credit $ (2) $ (1) $ (4) $ (2) 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 | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023 and December 31, 2022: Fair Value of Financial Instruments Jun 30, 2023 Dec 31, 2022 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 $ (264) $ — $ (29) $ (293) $ (394) $ — $ (29) $ (423) 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. Fair Value Measurements on a Nonrecurring Basis As part of the 2023 Restructuring Program, the Corporation rationalized its manufacturing assets to achieve its structural cost improvement initiatives. In the first quarter of 2023, the manufacturing assets associated with this plan, classified as Level 3 measurements and valued using unobservable inputs, were written down to zero and the Corporation recorded an impairment charge of $2 million, which was included in "Restructuring and asset related charges - net" in the consolidated statements of income. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2023 | |
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 18 to the Consolidated Financial Statements included in the 2022 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 and six months ended June 30, 2023 and 2022: Product and Services Agreements Transactions Three Months Ended Six Months Ended Jun 30, 2023 Jun 30, 2022 Jun 30, 2023 Jun 30, 2022 Income Statement Classification In millions TDCC Subsidiary: Commodity and raw materials purchases 1 $ 262 $ 563 $ 581 $ 1,068 Cost of sales Commission expense $ 5 $ 5 $ 10 $ 10 Sundry income (expense) - net TDCC: General administrative and overhead type services and service fee $ 17 $ 16 $ 34 $ 32 Sundry income (expense) - net Activity-based costs 2 $ 25 $ 22 $ 51 $ 42 Cost of sales 1. Period-end balances on hand are included in inventory. The decrease in purchase costs was primarily due to lower feedstock and energy costs and lower production. 2. The increase in activity-based costs was primarily due to labor expense for engineering related to capital investment activity on the U.S. Gulf Coast. The following table summarizes cash dividends declared and paid to TDCC for the three and six months ended June 30, 2023 and 2022: Cash Dividends Declared and Paid Three Months Ended Six Months Ended Jun 30, 2023 Jun 30, 2022 Jun 30, 2023 Jun 30, 2022 In millions Cash dividends declared and paid $ 115 $ 296 $ 250 $ 521 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | The following table provides a breakdown of inventories: Inventories Jun 30, 2023 Dec 31, 2022 In millions Finished goods $ 205 $ 218 Work in process 29 37 Raw materials 67 76 Supplies 95 87 Total $ 396 $ 418 Adjustment of inventories to the LIFO basis (132) (162) Total inventories $ 264 $ 256 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease cost for operating and finance leases for the three and six months ended June 30, 2023 and 2022 were as follows: Lease Cost Three Months Ended Six Months Ended In millions Jun 30, 2023 Jun 30, 2022 Jun 30, 2023 Jun 30, 2022 Operating lease cost $ 7 $ 6 $ 13 $ 12 Short-term lease cost 11 8 21 16 Variable lease cost 5 5 12 9 Amortization of right-of-use assets - finance 1 — 2 1 Total lease cost $ 24 $ 19 $ 48 $ 38 |
AOCL (Tables)
AOCL (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 and six months ended June 30, 2023 and 2022 were as follows: Accumulated Other Comprehensive Loss Three Months Ended Six Months Ended In millions Jun 30, 2023 Jun 30, 2022 Jun 30, 2023 Jun 30, 2022 Cumulative Translation Adjustment Beginning balance $ (53) $ (55) $ (54) $ (53) Unrealized gains (losses) on foreign currency translation 1 2 2 — Ending balance $ (52) $ (53) $ (52) $ (53) Pension and Other Postretirement Benefits Beginning balance $ (1,339) $ (1,479) $ (1,348) $ (1,498) Amortization of net loss and prior service credit reclassified from AOCL to net income 1 13 24 25 49 Tax expense (benefit) 2 (3) (5) (6) (11) Net loss and prior service credit reclassified from AOCL to net income 10 19 19 38 Ending balance $ (1,329) $ (1,460) $ (1,329) $ (1,460) Total AOCL ending balance $ (1,381) $ (1,513) $ (1,381) $ (1,513) 1. 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 10 for additional information. 2. Reclassified to "Provision for income taxes." |
PENSION PLANS AND OTHER POSTR_2
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 Six Months Ended In millions Jun 30, 2023 Jun 30, 2022 Jun 30, 2023 Jun 30, 2022 Defined Benefit Pension Plans Service cost $ 8 $ 9 $ 17 $ 18 Interest cost 37 23 74 46 Expected return on plan assets (52) (56) (104) (113) Amortization of prior service credit — (1) — (1) Amortization of net loss 16 27 32 54 Net periodic benefit cost $ 9 $ 2 $ 19 $ 4 Other Postretirement Benefit Plan Interest cost $ 1 $ 1 $ 3 $ 2 Amortization of net gain (3) (2) (7) (4) Net periodic benefit credit $ (2) $ (1) $ (4) $ (2) |
Fair Value Measures and Discl_2
Fair Value Measures and Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023 and December 31, 2022: Fair Value of Financial Instruments Jun 30, 2023 Dec 31, 2022 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 $ (264) $ — $ (29) $ (293) $ (394) $ — $ (29) $ (423) 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) | 6 Months Ended |
Jun. 30, 2023 | |
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 and six months ended June 30, 2023 and 2022: Product and Services Agreements Transactions Three Months Ended Six Months Ended Jun 30, 2023 Jun 30, 2022 Jun 30, 2023 Jun 30, 2022 Income Statement Classification In millions TDCC Subsidiary: Commodity and raw materials purchases 1 $ 262 $ 563 $ 581 $ 1,068 Cost of sales Commission expense $ 5 $ 5 $ 10 $ 10 Sundry income (expense) - net TDCC: General administrative and overhead type services and service fee $ 17 $ 16 $ 34 $ 32 Sundry income (expense) - net Activity-based costs 2 $ 25 $ 22 $ 51 $ 42 Cost of sales 1. Period-end balances on hand are included in inventory. The decrease in purchase costs was primarily due to lower feedstock and energy costs and lower production. 2. The increase in activity-based costs was primarily due to labor expense for engineering related to capital investment activity on the U.S. Gulf Coast. |
Dividends Declared | The following table summarizes cash dividends declared and paid to TDCC for the three and six months ended June 30, 2023 and 2022: Cash Dividends Declared and Paid Three Months Ended Six Months Ended Jun 30, 2023 Jun 30, 2022 Jun 30, 2023 Jun 30, 2022 In millions Cash dividends declared and paid $ 115 $ 296 $ 250 $ 521 |
Revenue from Contract with Cu_2
Revenue from Contract with Customer (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Revenue from External Customer [Line Items] | ||
Contract with Customer, Liability | $ 32 | $ 33 |
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 | $ 30 | $ 31 |
Maximum [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue, Performance Obligation, Description of Timing | 17 years |
Restructuring and Related Act_2
Restructuring and Related Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and asset related charges - net | $ 0 | $ 14 | $ 0 | $ 14 | $ 0 |
Accrued and Other Current Liabilities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 8 | 8 | |||
Other Noncurrent Obligations | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | $ 2 | 2 | |||
Employee Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and asset related charges - net | 12 | ||||
Payments for Restructuring | 2 | ||||
Asset write-downs and write-offs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and asset related charges - net | $ 2 | $ 2 |
INVENTORIES (Schedule of Invent
INVENTORIES (Schedule of Inventories) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 205 | $ 218 |
Work in process | 29 | 37 |
Raw materials | 67 | 76 |
Supplies | 95 | 87 |
Inventory, Gross | 396 | 418 |
Inventory Adjustments | (132) | (162) |
Total inventories | $ 264 | $ 256 |
Supplier Finance Program (Detai
Supplier Finance Program (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Accounts Payable | ||
Supplier Finance Program [Line Items] | ||
Supplier Finance Program Obligation, Current | $ 30 | $ 29 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Environmental Matters) (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | |
Site Contingency [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ 202 | $ 183 | |
Accrual for Environmental Loss Contingencies, Revision in Estimates | $ 37 | ||
Super Fund Sites [Member] | |||
Site Contingency [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ 39 | $ 36 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Asbestos-Related Matters of Union Carbide Corporation) (Table and Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Loss Contingencies [Line Items] | ||
Liability for Asbestos and Environmental Claims, Gross | $ 904 | $ 947 |
Percentage of recorded asbestos liability related to pending claims | 26% | |
Percentage of recorded asbestos liability related to future claims | 74% |
LEASES COSTS AND OTHER INFORMAT
LEASES COSTS AND OTHER INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Operating Lease Cost | $ 7 | $ 6 | $ 13 | $ 12 |
Short-term Lease Cost | 11 | 8 | 21 | 16 |
Variable Lease, Cost | 5 | 5 | 12 | 9 |
Finance Lease, Right-of-Use Asset, Amortization | 1 | 0 | 2 | 1 |
Lease, Cost | $ 24 | $ 19 | $ 48 | $ 38 |
AOCL (Details)
AOCL (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated other comprehensive loss | $ (1,381) | $ (1,513) | $ (1,381) | $ (1,513) | $ (1,402) | |||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated other comprehensive loss | (52) | (53) | (52) | (53) | $ (53) | (54) | $ (55) | $ (53) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 1 | 2 | 2 | 0 | ||||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated other comprehensive loss | (1,329) | (1,460) | (1,329) | (1,460) | $ (1,339) | $ (1,348) | $ (1,479) | $ (1,498) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 13 | 24 | 25 | 49 | ||||
Reclassification from AOCI, Current Period, Tax | (3) | (5) | (6) | (11) | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 10 | $ 19 | $ 19 | $ 38 |
PENSION PLANS AND OTHER POSTR_3
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Defined Benefit Pension Plans [Member] | ||||
Service cost | $ 8 | $ 9 | $ 17 | $ 18 |
Interest cost | 37 | 23 | 74 | 46 |
Expected return on plan assets | 52 | 56 | 104 | 113 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | (1) | 0 | (1) |
Defined Benefit Plan, Amortization of Gain (Loss) | (16) | (27) | (32) | (54) |
Net periodic benefit cost (credit) | 9 | 2 | 19 | 4 |
Other Postretirement Benefits [Member] | ||||
Interest cost | 1 | 1 | 3 | 2 |
Defined Benefit Plan, Amortization of Gain (Loss) | 3 | 2 | 7 | 4 |
Net periodic benefit cost (credit) | $ (2) | $ (1) | $ (4) | $ (2) |
Fair Value Measures and Discl_3
Fair Value Measures and Disclosures (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Long-term Debt | $ (264) | $ (264) | $ (394) | |||
Long-term Debt, Fair Value | (293) | (293) | (423) | |||
Restructuring and asset related charges - net | 0 | $ 14 | $ 0 | 14 | $ 0 | |
Restructuring and asset related charges - net | 0 | 14 | $ 0 | 14 | $ 0 | |
Asset write-downs and write-offs [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Restructuring and asset related charges - net | 2 | 2 | ||||
Restructuring and asset related charges - net | $ 2 | 2 | ||||
Long-term Debt [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Financial Instruments Gross Unrealized Gains | 0 | 0 | 0 | |||
Financial Instruments Gross Unrealized Loss | (29) | (29) | (29) | |||
Money Market Funds [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Cash Equivalents, at Carrying Value | 10 | 10 | 10 | |||
Financial Instruments Gross Unrealized Gains | 0 | 0 | 0 | |||
Financial Instruments Gross Unrealized Loss | 0 | 0 | 0 | |||
Cash Equivalents, Fair Value | 10 | 10 | $ 10 | |||
Fair Value, Inputs, Level 3 | Fair Value, Nonrecurring [Member] | Manufacturing Assets [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Assets, Fair Value Disclosure | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Related Party Transaction [Line Items] | ||||
Payments of Dividends | $ 250 | $ 521 | ||
The Dow Chemical Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Payments of Dividends | $ 115 | $ 296 | $ 250 | $ 521 |
Commodity And Raw Material Purchases | Cost of Sales [Member] | The Dow Chemical Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating Cost and Expense, Related and Nonrelated Party Status [Extensible Enumeration] | Related Party [Member] | Related Party [Member] | Related Party [Member] | Related Party [Member] |
Net Commission Expense | Sundry Income (Expense), Net [Member] | The Dow Chemical Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating Cost and Expense, Related and Nonrelated Party Status [Extensible Enumeration] | Related Party [Member] | Related Party [Member] | Related Party [Member] | Related Party [Member] |
General and Administrative Expense | Sundry Income (Expense), Net [Member] | The Dow Chemical Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating Cost and Expense, Related and Nonrelated Party Status [Extensible Enumeration] | Related Party [Member] | Related Party [Member] | Related Party [Member] | Related Party [Member] |
Activity Based Costs | Cost of Sales [Member] | The Dow Chemical Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating Cost and Expense, Related and Nonrelated Party Status [Extensible Enumeration] | Related Party [Member] | Related Party [Member] | Related Party [Member] | Related Party [Member] |