Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018 | |
Entity Information [Line Items] | |
Entity Registrant Name | DOW INC. |
Entity Central Index Key | 0001751788 |
Document Type | 8-K |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Entity Emerging Growth Company | false |
The Dow Chemical Company [Domain] | |
Entity Information [Line Items] | |
Entity Registrant Name | DOW CHEMICAL CO /DE/ |
Entity Central Index Key | 0000029915 |
Document Type | 8-K |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Entity Emerging Growth Company | false |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||||||||||
Net sales | $ 11,944 | $ 12,634 | $ 12,789 | $ 12,237 | $ 12,061 | $ 10,991 | $ 10,554 | $ 10,124 | $ 49,604 | $ 43,730 | $ 36,264 |
Cost of sales | 10,098 | 10,456 | 10,540 | 9,980 | 10,322 | 8,979 | 8,703 | 8,346 | 41,074 | 36,350 | 30,053 |
Research and development expenses | 800 | 803 | 746 | ||||||||
Selling, general and administrative expenses | 1,782 | 1,795 | 1,800 | ||||||||
Amortization of intangibles | 469 | 400 | 316 | ||||||||
Restructuring, goodwill impairment and asset related charges - net | 46 | 48 | 40 | 87 | 2,634 | 117 | (12) | 0 | 221 | 2,739 | 579 |
Integration and separation costs | 380 | 313 | 262 | 224 | 263 | 290 | 136 | 109 | 1,179 | 798 | 349 |
Asbestos-related charge | 0 | 0 | 1,113 | ||||||||
Equity in earnings of nonconsolidated affiliates | 555 | 394 | 187 | ||||||||
Sundry income (expense) - net | 96 | (154) | 517 | ||||||||
Interest income | 82 | 66 | 75 | ||||||||
Interest expense and amortization of debt discount | 1,063 | 914 | 827 | ||||||||
Income from continuing operations before income taxes | 3,749 | 237 | 1,260 | ||||||||
Provision (credit) for income taxes on continuing operations | 809 | 1,524 | (218) | ||||||||
Income (loss) from continuing operations, net of tax | 491 | 714 | 810 | 925 | (3,218) | 505 | 812 | 614 | 2,940 | (1,287) | 1,478 |
Income from discontinued operations, net of tax | 432 | 335 | 554 | 514 | 737 | 296 | 548 | 301 | 1,835 | 1,882 | 2,926 |
Net income | 923 | 1,049 | 1,364 | 1,439 | (2,481) | 801 | 1,360 | 915 | 4,775 | 595 | 4,404 |
Net income attributable to noncontrolling interests | 134 | 130 | 86 | ||||||||
Net income attributable to Dow Inc. | 4,641 | 465 | 4,318 | ||||||||
Preferred stock dividends | 0 | 0 | 340 | ||||||||
Net income available for Dow Inc. common stockholders | $ 891 | $ 1,013 | $ 1,333 | $ 1,404 | $ (2,524) | $ 779 | $ 1,322 | $ 888 | $ 4,641 | $ 465 | $ 3,978 |
Earnings (loss) per common share from continuing operations - basic | $ 0.63 | $ 0.91 | $ 1.05 | $ 1.21 | $ (4.36) | $ 0.64 | $ 1.04 | $ 0.81 | $ 3.80 | $ (1.88) | $ 1.57 |
Earnings per common share from discontinued operations - basic | 2.41 | 2.48 | 4.23 | ||||||||
Earnings per common share - basic | 6.21 | 0.60 | 5.80 | ||||||||
Earnings (loss) per common share from continuing operations - diluted | $ 0.63 | $ 0.91 | $ 1.05 | $ 1.21 | $ (4.36) | $ 0.64 | $ 1.03 | $ 0.80 | 3.80 | (1.88) | 1.55 |
Earnings per common share from discontinued operations - diluted | 2.41 | 2.48 | 4.18 | ||||||||
Earnings per common share - diluted | $ 6.21 | $ 0.60 | $ 5.73 | ||||||||
Weighted-average common shares outstanding - basic | 747.2 | 744.8 | 681.6 | ||||||||
Weighted-average common shares outstanding - diluted | 747.2 | 744.8 | 690.9 |
Dow Inc. Consolidated Statement
Dow Inc. Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net income | $ 923 | $ 1,049 | $ 1,364 | $ 1,439 | $ (2,481) | $ 801 | $ 1,360 | $ 915 | $ 4,775 | $ 595 | $ 4,404 |
Other comprehensive income (loss), net of tax | |||||||||||
Unrealized losses on investments | (67) | (46) | (4) | ||||||||
Cumulative translation adjustments | (225) | 900 | (644) | ||||||||
Pension and other postretirement benefit plans | (40) | 391 | (620) | ||||||||
Derivative instruments | 75 | (14) | 113 | ||||||||
Total other comprehensive income (loss) | (257) | 1,231 | (1,155) | ||||||||
Comprehensive income | 4,518 | 1,826 | 3,249 | ||||||||
Comprehensive income attributable to noncontrolling interests, net of tax | 97 | 172 | 83 | ||||||||
Comprehensive income attributable to Dow Inc. | $ 4,421 | $ 1,654 | $ 3,166 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets | |||
Cash and cash equivalents (variable interest entities restricted - 2018: $71; 2017: $86) | $ 2,724 | $ 6,189 | $ 6,607 |
Marketable securities | 100 | 4 | |
Accounts and notes receivable: | |||
Trade (net of allowance for doubtful receivables - 2018: $42; 2017: $59) | 5,646 | 5,386 | |
Other | 3,389 | 4,208 | |
Inventories | 6,899 | 6,045 | |
Other current assets | 712 | 510 | |
Assets of discontinued operations - current | 19,900 | 5,549 | |
Total current assets | 39,370 | 27,891 | |
Investments | |||
Investment in nonconsolidated affiliates | 3,320 | 3,107 | 2,974 |
Other investments (investments carried at fair value - 2018: $1,699; 2017: $1,512) | 2,646 | 2,507 | |
Noncurrent receivables | 360 | 543 | |
Total investments | 6,326 | 6,157 | |
Property | |||
Property | 53,984 | 52,809 | |
Less accumulated depreciation | 32,566 | 31,225 | |
Net property (variable interest entities restricted - 2018: $683; 2017: $855) | 21,418 | 21,584 | 20,161 |
Other Assets | |||
Goodwill | 9,846 | 9,833 | 7,541 |
Other intangible assets (net of accumulated amortization - 2018: $3,379; 2017: $2,842) | 4,225 | 4,729 | |
Deferred income tax assets | 1,779 | 1,114 | |
Deferred charges and other assets | 735 | 814 | |
Assets of discontinued operations - noncurrent | 0 | 13,730 | |
Total other assets | 16,585 | 30,220 | |
Total Assets | 85,852 | ||
Current Liabilities | |||
Notes payable | 298 | 481 | |
Long-term debt due within one year | 338 | 748 | |
Accounts payable: | |||
Trade | 4,456 | 4,004 | |
Other | 2,479 | 2,463 | |
Income taxes payable | 557 | 487 | |
Accrued and other current liabilities | 2,931 | 3,389 | |
Liabilities of discontinued operations - current | 4,488 | 3,008 | |
Total current liabilities | 14,580 | ||
Long-Term Debt (variable interest entities nonrecourse - 2018: $75; 2017: $249) | 19,253 | 19,757 | |
Other Noncurrent Liabilities | |||
Deferred income tax liabilities | 501 | 27 | |
Pension and other postretirement benefits - noncurrent | 8,926 | 10,494 | |
Asbestos-related liabilities - noncurrent | 1,142 | 1,237 | |
Other noncurrent obligations | 4,709 | 5,193 | |
Liabilities of discontinued operations - noncurrent | 0 | 1,863 | |
Total other noncurrent liabilities | 15,278 | 18,814 | |
Stockholders’ Equity | |||
Common stock (authorized and issued 100 shares of $0.01 par value each) | 0 | 0 | |
Additional paid-in capital | 7,042 | 6,553 | |
Retained earnings | 35,460 | 33,742 | |
Accumulated other comprehensive loss | (9,885) | (8,591) | |
Unearned ESOP shares | (134) | (189) | |
Dow Inc.’s stockholders’ equity | 32,483 | 31,515 | 25,987 |
Noncontrolling interests | 1,138 | 1,186 | 1,242 |
Total equity | 33,621 | 32,701 | $ 27,229 |
Total Liabilities and Equity | $ 83,699 | $ 85,852 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts and notes receivable: | ||
Allowance for doubtful receivables | $ 42 | $ 59 |
Investments | ||
Investments carried at fair value | 1,699 | 1,512 |
Property | ||
Other intangible assets, accumulated amortization | $ 3,379 | $ 2,842 |
Common stock authorized (in shares) | 100 | 100 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock issued (in shares) | 100 | 100 |
Treasury stock (in shares) | 0 | 0 |
Primary Beneficiary | Cash and Cash Equivalents | ||
Pledged current assets | $ 71 | $ 86 |
Primary Beneficiary | Property, Plant and Equipment | ||
Property | ||
Pledged noncurrent assets | 683 | 855 |
Primary Beneficiary | Long-term Debt | ||
Property | ||
Noncurrent liabilities - nonrecourse | $ 75 | $ 249 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 56 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Aug. 30, 2017 | |
Operating Activities | ||||||||||||
Net income | $ 4,775 | $ 595 | $ 4,404 | |||||||||
Less: Income (loss) from discontinued operations | $ 432 | $ 335 | $ 554 | $ 514 | $ 737 | $ 296 | $ 548 | $ 301 | 1,835 | 1,882 | 2,926 | |
Income from continuing operations, net of tax | 491 | $ 714 | $ 810 | 925 | (3,218) | $ 505 | $ 812 | 614 | 2,940 | (1,287) | 1,478 | |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||||||||||
Depreciation and amortization | 2,909 | 2,546 | 2,225 | |||||||||
Provision (Credit) for deferred income tax | (429) | 1,413 | (1,009) | |||||||||
Earnings of nonconsolidated affiliates less than (in excess of) dividends received | 108 | 253 | 425 | |||||||||
Net periodic pension benefit cost | 279 | 1,032 | 292 | |||||||||
Pension contributions | (1,651) | (1,672) | (624) | |||||||||
Net gain on sales of assets, businesses and investments | (38) | (419) | (196) | |||||||||
Net (gain) loss on step acquisition of nonconsolidated affiliate | 20 | 0 | (1,617) | |||||||||
Restructuring, goodwill impairment and asset related charges - net | 221 | 2,739 | 579 | |||||||||
Amortization of Merger-related inventory step-up | 2 | 120 | 0 | |||||||||
Asbestos-related charge | 0 | 0 | 1,113 | |||||||||
Other net loss | 393 | 331 | 324 | |||||||||
Changes in assets and liabilities, net of effects of acquired and divested companies: | ||||||||||||
Accounts and notes receivable | (855) | (11,431) | (8,764) | |||||||||
Inventories | (859) | (891) | 380 | |||||||||
Accounts payable | 787 | 1,081 | 547 | |||||||||
Other assets and liabilities, net | (731) | (258) | 965 | |||||||||
Cash provided by (used for) operating activities - continuing operations | 3,096 | (6,443) | (3,882) | |||||||||
Cash provided by operating activities - discontinued operations | 1,158 | 1,514 | 925 | |||||||||
Cash provided by (used for) operating activities | 4,254 | (4,929) | (2,957) | |||||||||
Investing Activities | ||||||||||||
Capital expenditures | (2,091) | (2,807) | (3,489) | |||||||||
Investment in gas field developments | (114) | (121) | (113) | |||||||||
Purchases of previously leased assets | (26) | (187) | 0 | |||||||||
Proceeds from sales of property and businesses, net of cash divested | 47 | 522 | 235 | |||||||||
Acquisitions of property and businesses, net of cash acquired | (20) | 47 | (163) | |||||||||
Cash acquired in step acquisition of nonconsolidated affiliate | 0 | 0 | 1,070 | |||||||||
Investments in and loans to nonconsolidated affiliates | (18) | (749) | (1,020) | |||||||||
Distributions and loan repayments from nonconsolidated affiliates | 55 | 69 | 98 | |||||||||
Purchases of investments | (1,530) | (642) | (577) | |||||||||
Proceeds from sales and maturities of investments | 1,214 | 1,165 | 733 | |||||||||
Proceeds from interests in trade accounts receivable conduits | 657 | 9,462 | 8,551 | |||||||||
Other investing activities, net | 0 | 34 | 46 | |||||||||
Cash provided by (used for) investing activities - continuing operations | (1,826) | 6,793 | 5,371 | |||||||||
Cash provided by (used for) investing activities - discontinued operations | (369) | 725 | (279) | |||||||||
Cash provided by (used for) investing activities | (2,195) | 7,518 | 5,092 | |||||||||
Financing Activities | ||||||||||||
Transfer of business under common control | (240) | 6 | 0 | |||||||||
Changes in short-term notes payable | (178) | 268 | (19) | |||||||||
Proceeds from issuance of long-term debt | 1,999 | 0 | 30 | |||||||||
Payments on long-term debt | (3,054) | (617) | (584) | |||||||||
Purchases of treasury stock | 0 | 0 | (916) | $ (8,100) | ||||||||
Proceeds from issuance of parent company stock | 112 | 66 | 0 | |||||||||
Proceeds from sales of common stock | 0 | 423 | 398 | |||||||||
Employee taxes paid for share-based payment arrangements | (77) | (81) | (58) | |||||||||
Distributions to noncontrolling interests | (135) | (101) | (146) | |||||||||
Purchases of noncontrolling interests | 0 | 0 | (202) | |||||||||
Dividends paid to stockholders | 0 | (2,179) | (2,462) | |||||||||
Dividends paid to parent | (3,711) | (1,056) | 0 | |||||||||
Other financing activities, net | (67) | (4) | (2) | |||||||||
Cash used for financing activities - continuing operations | (5,351) | (3,275) | (3,961) | |||||||||
Cash used for financing activities - discontinued operations | (53) | (50) | (53) | |||||||||
Cash used for financing activities | (5,404) | (3,325) | (4,014) | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (99) | 320 | (77) | |||||||||
Summary | ||||||||||||
Decrease in cash, cash equivalents and restricted cash | (3,444) | (416) | (1,956) | |||||||||
Cash, cash equivalents and restricted cash at beginning of year | $ 6,208 | $ 6,624 | 6,208 | 6,624 | 8,580 | |||||||
Cash, cash equivalents and restricted cash at end of year | 2,764 | 6,208 | 2,764 | 6,208 | 6,624 | |||||||
Less: Restricted cash and cash equivalents, included in Other current assets | 40 | 19 | 40 | 19 | 17 | |||||||
Cash and cash equivalents at end of year | $ 2,724 | $ 6,189 | $ 2,724 | $ 6,189 | $ 6,607 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Add'l Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Unearned ESOP | Treasury Stock |
Beginning balance at Dec. 31, 2015 | $ 4,000 | $ 3,107 | $ 4,936 | $ 28,425 | $ (8,667) | $ (272) | $ (6,155) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income available for The Dow Chemical Company common stockholder | $ 3,978 | 3,978 | ||||||
Other comprehensive income (loss) | (1,155) | (1,155) | ||||||
Dividends to stockholders | 2,037 | |||||||
Dividends to parent | 0 | |||||||
Common stock issued/sold | 398 | 717 | ||||||
Issuance of parent company stock | 0 | |||||||
Stock-based compensation and allocation of ESOP shares | (376) | 51 | ||||||
ESOP shares acquired | (18) | |||||||
Treasury stock purchases | 916 | |||||||
Preferred stock converted to common stock | (4,000) | (695) | (4,695) | |||||
Merger impact | 0 | 0 | 0 | |||||
Other | 1 | 28 | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 0 | 0 | ||||||
Transfer of Business Under Common Control | 0 | 0 | ||||||
Ending balance at Dec. 31, 2016 | 27,229 | 0 | 3,107 | 4,262 | 30,338 | (9,822) | (239) | (1,659) |
Dow Inc.’s stockholders’ equity | 25,987 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Noncontrolling interests | 1,242 | |||||||
Net income available for The Dow Chemical Company common stockholder | 465 | 465 | ||||||
Other comprehensive income (loss) | 1,231 | 1,231 | ||||||
Dividends to stockholders | 1,673 | |||||||
Dividends to parent | 1,056 | |||||||
Common stock issued/sold | 423 | 724 | ||||||
Issuance of parent company stock | 66 | |||||||
Stock-based compensation and allocation of ESOP shares | (368) | 50 | ||||||
ESOP shares acquired | 0 | |||||||
Treasury stock purchases | 0 | |||||||
Preferred stock converted to common stock | 0 | 0 | 0 | |||||
Merger impact | (3,107) | (2,172) | (935) | |||||
Other | 2 | 25 | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 0 | 0 | ||||||
Transfer of Business Under Common Control | (6) | 5,693 | ||||||
Ending balance at Dec. 31, 2017 | 32,701 | 0 | 0 | 6,553 | 33,742 | (8,591) | (189) | 0 |
Dow Inc.’s stockholders’ equity | 31,515 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Noncontrolling interests | 1,186 | |||||||
Net income available for The Dow Chemical Company common stockholder | 4,641 | 4,641 | ||||||
Other comprehensive income (loss) | (257) | (257) | ||||||
Dividends to stockholders | 0 | |||||||
Dividends to parent | 3,711 | |||||||
Common stock issued/sold | 0 | 0 | ||||||
Issuance of parent company stock | 112 | |||||||
Stock-based compensation and allocation of ESOP shares | 377 | 55 | ||||||
ESOP shares acquired | 0 | |||||||
Treasury stock purchases | 0 | |||||||
Preferred stock converted to common stock | 0 | 0 | 0 | |||||
Merger impact | 0 | 0 | 0 | |||||
Other | 0 | 19 | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 989 | (1,037) | ||||||
Transfer of Business Under Common Control | 240 | (182) | ||||||
Ending balance at Dec. 31, 2018 | 33,621 | $ 0 | $ 0 | $ 7,042 | $ 35,460 | $ (9,885) | $ (134) | $ 0 |
Dow Inc.’s stockholders’ equity | 32,483 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Noncontrolling interests | $ 1,138 |
TDCC Consolidated Statements of
TDCC Consolidated Statements of Income Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net sales | $ 49,604 | $ 43,730 | $ 36,264 |
Cost of sales | 41,074 | 36,350 | 30,053 |
Research and development expenses | 800 | 803 | 746 |
Selling, general and administrative expenses | 1,782 | 1,795 | 1,800 |
Amortization of intangibles | 469 | 400 | 316 |
Restructuring, goodwill impairment and asset related charges - net | 221 | 2,739 | 579 |
Integration and separation costs | 1,179 | 798 | 349 |
Asbestos-related charge | 0 | 0 | 1,113 |
Equity in earnings of nonconsolidated affiliates | 555 | 394 | 187 |
Sundry income (expense) - net | 96 | (154) | 517 |
Interest income | 82 | 66 | 75 |
Interest expense and amortization of debt discount | 1,063 | 914 | 827 |
Income from continuing operations before income taxes | 3,749 | 237 | 1,260 |
Provision (credit) for income taxes on continuing operations | 809 | 1,524 | (218) |
Income (loss) from continuing operations, net of tax | 2,940 | (1,287) | 1,478 |
Income from discontinued operations, net of tax | 1,835 | 1,882 | 2,926 |
Net income | 4,775 | 595 | 4,404 |
Net income attributable to noncontrolling interests | 134 | 130 | 86 |
Net income attributable to The Dow Chemical Company | 4,641 | 465 | 4,318 |
Preferred stock dividends | 0 | 0 | 340 |
Net income available for The Dow Chemical Company common stockholder | 4,641 | 465 | 3,978 |
The Dow Chemical Company [Domain] | |||
Net sales | 49,604 | 43,730 | 36,264 |
Cost of sales | 41,074 | 36,350 | 30,053 |
Research and development expenses | 800 | 803 | 746 |
Selling, general and administrative expenses | 1,782 | 1,795 | 1,800 |
Amortization of intangibles | 469 | 400 | 316 |
Restructuring, goodwill impairment and asset related charges - net | 221 | 2,739 | 579 |
Integration and separation costs | 1,179 | 798 | 349 |
Asbestos-related charge | 0 | 0 | 1,113 |
Equity in earnings of nonconsolidated affiliates | 555 | 394 | 187 |
Sundry income (expense) - net | 96 | (154) | 517 |
Interest income | 82 | 66 | 75 |
Interest expense and amortization of debt discount | 1,063 | 914 | 827 |
Income from continuing operations before income taxes | 3,749 | 237 | 1,260 |
Provision (credit) for income taxes on continuing operations | 809 | 1,524 | (218) |
Income (loss) from continuing operations, net of tax | 2,940 | (1,287) | 1,478 |
Income from discontinued operations, net of tax | 1,835 | 1,882 | 2,926 |
Net income | 4,775 | 595 | 4,404 |
Net income attributable to noncontrolling interests | 134 | 130 | 86 |
Net income attributable to The Dow Chemical Company | 4,641 | 465 | 4,318 |
Preferred stock dividends | 0 | 0 | 340 |
Net income available for The Dow Chemical Company common stockholder | $ 4,641 | $ 465 | $ 3,978 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Long-term Investments and Receivables, Net | $ 6,326 | $ 6,157 | |
Net income | 4,775 | 595 | $ 4,404 |
Other comprehensive income (loss), net of tax | |||
Unrealized losses on investments | (67) | (46) | (4) |
Cumulative translation adjustments | (225) | 900 | (644) |
Pension and other postretirement benefit plans | (40) | 391 | (620) |
Derivative instruments | 75 | (14) | 113 |
Total other comprehensive income (loss) | (257) | 1,231 | (1,155) |
Comprehensive income | 4,518 | 1,826 | 3,249 |
Comprehensive income attributable to noncontrolling interests, net of tax | 97 | 172 | 83 |
Comprehensive income attributable to The Dow Chemical Company | 4,421 | 1,654 | 3,166 |
The Dow Chemical Company [Domain] | |||
Long-term Investments and Receivables, Net | 6,326 | 6,157 | |
Net income | 4,775 | 595 | 4,404 |
Other comprehensive income (loss), net of tax | |||
Unrealized losses on investments | (67) | (46) | (4) |
Cumulative translation adjustments | (225) | 900 | (644) |
Pension and other postretirement benefit plans | (40) | 391 | (620) |
Derivative instruments | 75 | (14) | 113 |
Total other comprehensive income (loss) | (257) | 1,231 | (1,155) |
Comprehensive income | 4,518 | 1,826 | 3,249 |
Comprehensive income attributable to noncontrolling interests, net of tax | 97 | 172 | 83 |
Comprehensive income attributable to The Dow Chemical Company | $ 4,421 | $ 1,654 | $ 3,166 |
TDCC Consolidated Balance Sheet
TDCC Consolidated Balance Sheets Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and cash equivalents (variable interest entities restricted - 2018: $71; 2017: $86) | $ 2,724 | $ 6,189 |
Marketable securities | 100 | 4 |
Accounts and notes receivable: | ||
Trade (net of allowance for doubtful receivables - 2018: $42; 2017: $59) | 5,646 | 5,386 |
Other | 3,389 | 4,208 |
Inventories | 6,899 | 6,045 |
Other current assets | 712 | 510 |
Assets of discontinued operations - current | 19,900 | 5,549 |
Total current assets | 39,370 | 27,891 |
Investments | ||
Investment in nonconsolidated affiliates | 3,320 | 3,107 |
Other investments (investments carried at fair value - 2018: $1,699; 2017: $1,512) | 2,646 | 2,507 |
Noncurrent receivables | 360 | 543 |
Total investments | 6,326 | 6,157 |
Property | ||
Property | 53,984 | 52,809 |
Less accumulated depreciation | 32,566 | 31,225 |
Net property (variable interest entities restricted - 2018: $683; 2017: $855) | 21,418 | 21,584 |
Other Assets | ||
Goodwill | 9,846 | 9,833 |
Other intangible assets (net of accumulated amortization - 2018: $3,379; 2017: $2,842) | 4,225 | 4,729 |
Deferred income tax assets | 1,779 | 1,114 |
Deferred charges and other assets | 735 | 814 |
Assets of discontinued operations - noncurrent | 0 | 13,730 |
Total other assets | 16,585 | 30,220 |
Total Assets | 85,852 | |
Current Liabilities | ||
Notes payable | 298 | 481 |
Long-term debt due within one year | 338 | 748 |
Accounts payable: | ||
Trade | 4,456 | 4,004 |
Other | 2,479 | 2,463 |
Income taxes payable | 557 | 487 |
Accrued and other current liabilities | 2,931 | 3,389 |
Liabilities of discontinued operations - current | 4,488 | 3,008 |
Total current liabilities | 14,580 | |
Long-Term Debt (variable interest entities nonrecourse - 2018: $75; 2017: $249) | 19,253 | 19,757 |
Other Noncurrent Liabilities | ||
Deferred income tax liabilities | 501 | 27 |
Pension and other postretirement benefits - noncurrent | 8,926 | 10,494 |
Asbestos-related liabilities - noncurrent | 1,142 | 1,237 |
Other noncurrent obligations | 4,709 | 5,193 |
Liabilities of discontinued operations - noncurrent | 0 | 1,863 |
Total other noncurrent liabilities | 15,278 | 18,814 |
Stockholders’ Equity | ||
Common stock (authorized and issued 100 shares of $0.01 par value each) | 0 | 0 |
Additional paid-in capital | 7,042 | 6,553 |
Retained earnings | 35,460 | 33,742 |
Accumulated other comprehensive loss | (9,885) | (8,591) |
Unearned ESOP shares | (134) | (189) |
The Dow Chemical Company’s stockholders’ equity | 32,483 | 31,515 |
Noncontrolling interests | 1,138 | 1,186 |
Total equity | 33,621 | 32,701 |
Total Liabilities and Equity | 83,699 | 85,852 |
The Dow Chemical Company [Domain] | ||
Current Assets | ||
Cash and cash equivalents (variable interest entities restricted - 2018: $71; 2017: $86) | 2,724 | 6,189 |
Marketable securities | 100 | 4 |
Accounts and notes receivable: | ||
Trade (net of allowance for doubtful receivables - 2018: $42; 2017: $59) | 5,646 | 5,386 |
Other | 3,389 | 4,208 |
Inventories | 6,899 | 6,045 |
Other current assets | 712 | 510 |
Assets of discontinued operations - current | 19,900 | 5,549 |
Total current assets | 39,370 | 27,891 |
Investments | ||
Investment in nonconsolidated affiliates | 3,320 | 3,107 |
Other investments (investments carried at fair value - 2018: $1,699; 2017: $1,512) | 2,646 | 2,507 |
Noncurrent receivables | 360 | 543 |
Total investments | 6,326 | 6,157 |
Property | ||
Property | 53,984 | 52,809 |
Less accumulated depreciation | 32,566 | 31,225 |
Net property (variable interest entities restricted - 2018: $683; 2017: $855) | 21,418 | 21,584 |
Other Assets | ||
Goodwill | 9,846 | 9,833 |
Other intangible assets (net of accumulated amortization - 2018: $3,379; 2017: $2,842) | 4,225 | 4,729 |
Deferred income tax assets | 1,779 | 1,114 |
Deferred charges and other assets | 735 | 814 |
Assets of discontinued operations - noncurrent | 0 | 13,730 |
Total other assets | 16,585 | 30,220 |
Total Assets | 83,699 | 85,852 |
Current Liabilities | ||
Notes payable | 298 | 481 |
Long-term debt due within one year | 338 | 748 |
Accounts payable: | ||
Trade | 4,456 | 4,004 |
Other | 2,479 | 2,463 |
Income taxes payable | 557 | 487 |
Accrued and other current liabilities | 2,931 | 3,389 |
Liabilities of discontinued operations - current | 4,488 | 3,008 |
Total current liabilities | 15,547 | 14,580 |
Long-Term Debt (variable interest entities nonrecourse - 2018: $75; 2017: $249) | 19,253 | 19,757 |
Other Noncurrent Liabilities | ||
Deferred income tax liabilities | 501 | 27 |
Pension and other postretirement benefits - noncurrent | 8,926 | 10,494 |
Asbestos-related liabilities - noncurrent | 1,142 | 1,237 |
Other noncurrent obligations | 4,709 | 5,193 |
Liabilities of discontinued operations - noncurrent | 0 | 1,863 |
Total other noncurrent liabilities | 15,278 | 18,814 |
Stockholders’ Equity | ||
Common stock (authorized and issued 100 shares of $0.01 par value each) | 0 | 0 |
Additional paid-in capital | 7,042 | 6,553 |
Retained earnings | 35,460 | 33,742 |
Accumulated other comprehensive loss | (9,885) | (8,591) |
Unearned ESOP shares | (134) | (189) |
The Dow Chemical Company’s stockholders’ equity | 32,483 | 31,515 |
Noncontrolling interests | 1,138 | 1,186 |
Total equity | 33,621 | 32,701 |
Total Liabilities and Equity | $ 83,699 | $ 85,852 |
TDCC Consolidated Balance She_2
TDCC Consolidated Balance Sheets Balance Sheet Parentheticals - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts and notes receivable: | ||
Allowance for doubtful receivables | $ 42 | $ 59 |
Investments | ||
Investments carried at fair value | 1,699 | 1,512 |
Property | ||
Other intangible assets, accumulated amortization | $ 3,379 | $ 2,842 |
Common stock authorized (in shares) | 100 | 100 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock issued (in shares) | 100 | 100 |
Primary Beneficiary | Cash and Cash Equivalents | ||
Pledged current assets | $ 71 | $ 86 |
Primary Beneficiary | Property, Plant and Equipment | ||
Property | ||
Pledged noncurrent assets | 683 | 855 |
Primary Beneficiary | Long-term Debt [Member] | ||
Property | ||
Noncurrent liabilities - nonrecourse | 75 | 249 |
The Dow Chemical Company [Domain] | ||
Accounts and notes receivable: | ||
Allowance for doubtful receivables | 42 | 59 |
Investments | ||
Investments carried at fair value | 1,699 | 1,512 |
Property | ||
Other intangible assets, accumulated amortization | $ 3,379 | $ 2,842 |
Common stock authorized (in shares) | 100 | 100 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock issued (in shares) | 100 | 100 |
The Dow Chemical Company [Domain] | Primary Beneficiary | Cash and Cash Equivalents | ||
Pledged current assets | $ 71 | $ 86 |
The Dow Chemical Company [Domain] | Primary Beneficiary | Property, Plant and Equipment | ||
Property | ||
Pledged noncurrent assets | 683 | 855 |
The Dow Chemical Company [Domain] | Primary Beneficiary | Long-term Debt [Member] | ||
Property | ||
Noncurrent liabilities - nonrecourse | $ 75 | $ 249 |
TDCC Consolidated Statements _2
TDCC Consolidated Statements of Cash Flows Statement - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income | $ 4,775 | $ 595 | $ 4,404 |
Income from discontinued operations, net of tax | 1,835 | 1,882 | 2,926 |
Income from continuing operations, net of tax | 2,940 | (1,287) | 1,478 |
Depreciation and amortization | 2,909 | 2,546 | 2,225 |
Provision (Credit) for deferred income tax | (429) | 1,413 | (1,009) |
Earnings of nonconsolidated affiliates less than (in excess of) dividends received | 108 | 253 | 425 |
Net periodic pension benefit cost | 279 | 1,032 | 292 |
Pension contributions | (1,651) | (1,672) | (624) |
Net gain on sales of assets, businesses and investments | (38) | (419) | (196) |
Net (gain) loss on step acquisition of nonconsolidated affiliate | 20 | 0 | (1,617) |
Restructuring, goodwill impairment and asset related charges - net | 221 | 2,739 | 579 |
Amortization of Merger-related inventory step-up | 2 | 120 | 0 |
Asbestos-related charge | 0 | 0 | 1,113 |
Other net loss | 393 | 331 | 324 |
Accounts and notes receivable | (855) | (11,431) | (8,764) |
Inventories | (859) | (891) | 380 |
Accounts payable | 787 | 1,081 | 547 |
Other assets and liabilities, net | (731) | (258) | 965 |
Cash provided by (used for) operating activities - continuing operations | 3,096 | (6,443) | (3,882) |
Cash provided by operating activities - discontinued operations | 1,158 | 1,514 | 925 |
Cash provided by (used for) operating activities | 4,254 | (4,929) | (2,957) |
Capital expenditures | (2,091) | (2,807) | (3,489) |
Investment in gas field developments | (114) | (121) | (113) |
Purchases of previously leased assets | (26) | (187) | 0 |
Proceeds from sales of property and businesses, net of cash divested | 47 | 522 | 235 |
Acquisitions of property and businesses, net of cash acquired | (20) | 47 | (163) |
Cash acquired in step acquisition of nonconsolidated affiliate | 0 | 0 | 1,070 |
Investments in and loans to nonconsolidated affiliates | (18) | (749) | (1,020) |
Distributions and loan repayments from nonconsolidated affiliates | 55 | 69 | 98 |
Purchases of investments | (1,530) | (642) | (577) |
Proceeds from sales and maturities of investments | 1,214 | 1,165 | 733 |
Proceeds from interests in trade accounts receivable conduits | 657 | 9,462 | 8,551 |
Other investing activities, net | 0 | 34 | 46 |
Cash provided by (used for) investing activities - continuing operations | (1,826) | 6,793 | 5,371 |
Cash provided by (used for) investing activities - discontinued operations | (369) | 725 | (279) |
Cash provided by (used for) investing activities | (2,195) | 7,518 | 5,092 |
Transfer of business under common control | (240) | 6 | 0 |
Changes in short-term notes payable | (178) | 268 | (19) |
Proceeds from issuance of long-term debt | 1,999 | 0 | 30 |
Payments on long-term debt | (3,054) | (617) | (584) |
Purchases of treasury stock | 0 | 0 | (916) |
Proceeds from issuance of parent company stock | 112 | 66 | 0 |
Proceeds from sales of common stock | 0 | 423 | 398 |
Employee taxes paid for share-based payment arrangements | (77) | (81) | (58) |
Distributions to noncontrolling interests | (135) | (101) | (146) |
Purchases of noncontrolling interests | 0 | 0 | (202) |
Dividends paid to stockholders | 0 | (2,179) | (2,462) |
Dividends paid to DowDuPont Inc. | (3,711) | (1,056) | 0 |
Other financing activities, net | (67) | (4) | (2) |
Cash used for financing activities - continuing operations | (5,351) | (3,275) | (3,961) |
Cash used for financing activities - discontinued operations | (53) | (50) | (53) |
Cash used for financing activities | (5,404) | (3,325) | (4,014) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (99) | 320 | (77) |
Decrease in cash, cash equivalents and restricted cash | (3,444) | (416) | (1,956) |
Cash, cash equivalents and restricted cash at beginning of year | 6,208 | 6,624 | 8,580 |
Cash, cash equivalents and restricted cash at end of year | 2,764 | 6,208 | 6,624 |
Less: Restricted cash and cash equivalents, included in Other current assets | 40 | 19 | 17 |
Cash and cash equivalents at end of year | 2,724 | 6,189 | 6,607 |
The Dow Chemical Company [Domain] | |||
Net income | 4,775 | 595 | 4,404 |
Income from discontinued operations, net of tax | 1,835 | 1,882 | 2,926 |
Income from continuing operations, net of tax | 2,940 | (1,287) | 1,478 |
Depreciation and amortization | 2,909 | 2,546 | 2,225 |
Provision (Credit) for deferred income tax | (429) | 1,413 | (1,009) |
Earnings of nonconsolidated affiliates less than (in excess of) dividends received | 108 | 253 | 425 |
Net periodic pension benefit cost | 279 | 1,032 | 292 |
Pension contributions | (1,651) | (1,672) | (624) |
Net gain on sales of assets, businesses and investments | (38) | (419) | (196) |
Net (gain) loss on step acquisition of nonconsolidated affiliate | 20 | 0 | (1,617) |
Restructuring, goodwill impairment and asset related charges - net | 221 | 2,739 | 579 |
Amortization of Merger-related inventory step-up | 2 | 120 | 0 |
Asbestos-related charge | 0 | 0 | 1,113 |
Other net loss | 393 | 331 | 324 |
Accounts and notes receivable | (855) | (11,431) | (8,764) |
Inventories | (859) | (891) | 380 |
Accounts payable | 787 | 1,081 | 547 |
Other assets and liabilities, net | (731) | (258) | 965 |
Cash provided by (used for) operating activities - continuing operations | 3,096 | (6,443) | (3,882) |
Cash provided by operating activities - discontinued operations | 1,158 | 1,514 | 925 |
Cash provided by (used for) operating activities | 4,254 | (4,929) | (2,957) |
Capital expenditures | (2,091) | (2,807) | (3,489) |
Investment in gas field developments | (114) | (121) | (113) |
Purchases of previously leased assets | (26) | (187) | 0 |
Proceeds from sales of property and businesses, net of cash divested | 47 | 522 | 235 |
Acquisitions of property and businesses, net of cash acquired | (20) | 47 | (163) |
Cash acquired in step acquisition of nonconsolidated affiliate | 0 | 0 | 1,070 |
Investments in and loans to nonconsolidated affiliates | (18) | (749) | (1,020) |
Distributions and loan repayments from nonconsolidated affiliates | 55 | 69 | 98 |
Purchases of investments | (1,530) | (642) | (577) |
Proceeds from sales and maturities of investments | 1,214 | 1,165 | 733 |
Proceeds from interests in trade accounts receivable conduits | 657 | 9,462 | 8,551 |
Other investing activities, net | 0 | 34 | 46 |
Cash provided by (used for) investing activities - continuing operations | (1,826) | 6,793 | 5,371 |
Cash provided by (used for) investing activities - discontinued operations | (369) | 725 | (279) |
Cash provided by (used for) investing activities | (2,195) | 7,518 | 5,092 |
Transfer of business under common control | (240) | 6 | 0 |
Changes in short-term notes payable | (178) | 268 | (19) |
Proceeds from issuance of long-term debt | 1,999 | 0 | 30 |
Payments on long-term debt | (3,054) | (617) | (584) |
Purchases of treasury stock | 0 | 0 | (916) |
Proceeds from issuance of parent company stock | 112 | 66 | 0 |
Proceeds from sales of common stock | 0 | 423 | 398 |
Employee taxes paid for share-based payment arrangements | (77) | (81) | (58) |
Distributions to noncontrolling interests | (135) | (101) | (146) |
Purchases of noncontrolling interests | 0 | 0 | (202) |
Dividends paid to stockholders | 0 | (2,179) | (2,462) |
Dividends paid to DowDuPont Inc. | (3,711) | (1,056) | 0 |
Other financing activities, net | (67) | (4) | (2) |
Cash used for financing activities - continuing operations | (5,351) | (3,275) | (3,961) |
Cash used for financing activities - discontinued operations | (53) | (50) | (53) |
Cash used for financing activities | (5,404) | (3,325) | (4,014) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (99) | 320 | (77) |
Decrease in cash, cash equivalents and restricted cash | (3,444) | (416) | (1,956) |
Cash, cash equivalents and restricted cash at beginning of year | 6,208 | 6,624 | 8,580 |
Cash, cash equivalents and restricted cash at end of year | 2,764 | 6,208 | 6,624 |
Less: Restricted cash and cash equivalents, included in Other current assets | 40 | 19 | 17 |
Cash and cash equivalents at end of year | $ 2,724 | $ 6,189 | $ 6,607 |
TDCC Consolidated Statements _3
TDCC Consolidated Statements of Equity Statement - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Add'l Paid-in Capital | Retained Earnings [Member] | Accumulated Other Comprehensive Loss | Unearned ESOP | Treasury Stock [Member] | The Dow Chemical Company [Domain] | The Dow Chemical Company [Domain]Preferred Stock | The Dow Chemical Company [Domain]Common Stock | The Dow Chemical Company [Domain]Add'l Paid-in Capital | The Dow Chemical Company [Domain]Retained Earnings [Member] | The Dow Chemical Company [Domain]Accumulated Other Comprehensive Loss | The Dow Chemical Company [Domain]Unearned ESOP | The Dow Chemical Company [Domain]Treasury Stock [Member] |
Beginning balance at Dec. 31, 2015 | $ 4,000 | $ 3,107 | $ 4,936 | $ 28,425 | $ (8,667) | $ (272) | $ (6,155) | $ 4,000 | $ 3,107 | $ 4,936 | $ 28,425 | $ (8,667) | $ (272) | $ (6,155) | ||
Preferred stock converted to common stock | (4,000) | (695) | (4,695) | (4,000) | (695) | (4,695) | ||||||||||
Merger impact | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Common stock issued/sold | 398 | 717 | 398 | 717 | ||||||||||||
Issuance of parent company stock | 0 | 0 | ||||||||||||||
Stock-based compensation and allocation of ESOP shares | (376) | 51 | (376) | 51 | ||||||||||||
Other | (1) | (28) | (1) | (28) | ||||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 0 | 0 | 0 | 0 | ||||||||||||
Net income available for The Dow Chemical Company common stockholder | $ 3,978 | 3,978 | $ 3,978 | 3,978 | ||||||||||||
Dividends to stockholders | 2,037 | 2,037 | ||||||||||||||
Dividends to parent | 0 | 0 | ||||||||||||||
Transfer of Business Under Common Control | 0 | 0 | 0 | 0 | ||||||||||||
Other comprehensive income (loss) | (1,155) | (1,155) | (1,155) | (1,155) | ||||||||||||
ESOP shares acquired | (18) | (18) | ||||||||||||||
Treasury stock purchases | 916 | 916 | ||||||||||||||
Ending balance at Dec. 31, 2016 | 27,229 | 0 | 3,107 | 4,262 | 30,338 | (9,822) | (239) | (1,659) | 27,229 | 0 | 3,107 | 4,262 | 30,338 | (9,822) | (239) | (1,659) |
The Dow Chemical Company’s stockholders’ equity | 25,987 | 25,987 | ||||||||||||||
Noncontrolling interests | 1,242 | 1,242 | ||||||||||||||
Preferred stock converted to common stock | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Merger impact | (3,107) | (2,172) | (935) | (3,107) | (2,172) | (935) | ||||||||||
Common stock issued/sold | 423 | 724 | 423 | 724 | ||||||||||||
Issuance of parent company stock | 66 | 66 | ||||||||||||||
Stock-based compensation and allocation of ESOP shares | (368) | 50 | (368) | 50 | ||||||||||||
Other | (2) | (25) | (2) | (25) | ||||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 0 | 0 | 0 | 0 | ||||||||||||
Net income available for The Dow Chemical Company common stockholder | 465 | 465 | 465 | 465 | ||||||||||||
Dividends to stockholders | 1,673 | 1,673 | ||||||||||||||
Dividends to parent | 1,056 | 1,056 | ||||||||||||||
Transfer of Business Under Common Control | (6) | 5,693 | (6) | 5,693 | ||||||||||||
Other comprehensive income (loss) | 1,231 | 1,231 | 1,231 | 1,231 | ||||||||||||
ESOP shares acquired | 0 | 0 | ||||||||||||||
Treasury stock purchases | 0 | 0 | ||||||||||||||
Ending balance at Dec. 31, 2017 | 32,701 | 0 | 0 | 6,553 | 33,742 | (8,591) | (189) | 0 | 32,701 | 0 | 0 | 6,553 | 33,742 | (8,591) | (189) | 0 |
The Dow Chemical Company’s stockholders’ equity | 31,515 | 31,515 | ||||||||||||||
Noncontrolling interests | 1,186 | 1,186 | ||||||||||||||
Preferred stock converted to common stock | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Merger impact | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Common stock issued/sold | 0 | 0 | 0 | 0 | ||||||||||||
Issuance of parent company stock | 112 | 112 | ||||||||||||||
Stock-based compensation and allocation of ESOP shares | 377 | 55 | 377 | 55 | ||||||||||||
Other | 0 | (19) | 0 | (19) | ||||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 989 | (1,037) | 989 | (1,037) | ||||||||||||
Net income available for The Dow Chemical Company common stockholder | 4,641 | 4,641 | 4,641 | 4,641 | ||||||||||||
Dividends to stockholders | 0 | 0 | ||||||||||||||
Dividends to parent | 3,711 | 3,711 | ||||||||||||||
Transfer of Business Under Common Control | 240 | (182) | 240 | (182) | ||||||||||||
Other comprehensive income (loss) | (257) | (257) | (257) | (257) | ||||||||||||
ESOP shares acquired | 0 | 0 | ||||||||||||||
Treasury stock purchases | 0 | 0 | ||||||||||||||
Ending balance at Dec. 31, 2018 | 33,621 | $ 0 | $ 0 | $ 7,042 | $ 35,460 | $ (9,885) | $ (134) | $ 0 | 33,621 | $ 0 | $ 0 | $ 7,042 | $ 35,460 | $ (9,885) | $ (134) | $ 0 |
The Dow Chemical Company’s stockholders’ equity | 32,483 | 32,483 | ||||||||||||||
Noncontrolling interests | $ 1,138 | $ 1,138 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Merger and Separation 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 The Dow Chemical Company and its consolidated subsidiaries (“TDCC” and together with Dow Inc., “Dow” or the “Company”), owning all of the outstanding common shares of TDCC. 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 (“DuPont”) each merged with subsidiaries of DowDuPont and, as a result, TDCC and DuPont became subsidiaries of DowDuPont (the “Merger”). Subsequent to the Merger, TDCC and 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. Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements of Dow were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the assets, liabilities, revenues and expenses of all majority-owned subsidiaries over which Dow exercises control and, when applicable, entities for which Dow has a controlling financial interest or is the primary beneficiary. Intercompany transactions and balances are eliminated in consolidation. Investments in nonconsolidated affiliates (20-50 percent owned companies or less than 20 percent owned companies over which significant influence is exercised) are accounted for using the equity method. Effective April 1, 2019, Dow Inc. owns all of the outstanding common shares of TDCC. TDCC is deemed the predecessor to Dow Inc. and the historical results of TDCC are deemed the historical results of Dow Inc. for all periods presented. As a result of the relationship between Dow Inc. and TDCC, the companies are filing a combined report for this Annual Report on Form 10-K. As of the effective date and time of the distribution, DowDuPont does not beneficially own any equity interest in Dow and no longer consolidates Dow and its consolidated subsidiaries into its financial results. The consolidated financial results of Dow for all periods presented reflect the distribution of TDCC’s agricultural sciences business (“AgCo”) and specialty products business (“SpecCo”) as discontinued operations, as well as the receipt of DuPont’s ethylene and ethylene copolymers businesses (other than its ethylene acrylic elastomers business) (“ECP”) as a common control transaction from the closing of the Merger on August 31, 2017. See Notes 3 and 4 and Dow Inc.'s Amendment No. 4 to the Registration Statement on Form 10 filed with the U.S. Securities and Exchange Commission ("SEC") on March 8, 2019 for additional information. Effective with the Merger, the Company's business activities were components of DowDuPont's business operations and therefore, were reported as a single operating segment. Following the separation from DowDuPont, the Company changed the manner in which its business activities were managed. The Company's portfolio now includes six global businesses which are organized into the following operating segments: Performance Materials & Coatings, Industrial Intermediates & Infrastructure and Packaging & Specialty Plastics. Corporate contains the reconciliation between the totals for the operating segments and the Company's totals. From the Merger date through the separation, transactions between DowDuPont, TDCC and DuPont and their affiliates were treated as related party transactions. Transactions between TDCC and DuPont primarily consisted of the sale and procurement of certain feedstocks, energy and raw materials that were consumed in each company's manufacturing process. See Note 26 for additional information. Throughout this Current Report on Form 8-K, unless otherwise indicated, amounts and activity are presented on a continuing operations basis. Except as otherwise indicated by the context, the terms "Union Carbide" means Union Carbide Corporation, a wholly owned subsidiary of the Company, and "Dow Silicones" means Dow Silicones Corporation (formerly known as Dow Corning Corporation, which changed its name effective as of February 1, 2018), a wholly owned subsidiary of the Company. Use of Estimates in Financial Statement Preparation The preparation of financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company’s consolidated financial statements include amounts that are based on management’s best estimates and judgments. Actual results could differ from those estimates. Significant Accounting Policies Asbestos-Related Matters Accruals for asbestos-related matters, including defense and processing costs, are recorded based on an analysis of claim and resolution activity, defense spending, and pending and future claims. These accruals are assessed at each balance sheet date to determine if the asbestos-related liability remains appropriate. Accruals for asbestos-related matters are included in the consolidated balance sheets in “Accrued and other current liabilities” and “Asbestos-related liabilities - noncurrent.” See Note 18 for additional information. Legal Costs The Company expenses legal costs as incurred, with the exception of defense and processing costs associated with asbestos-related matters. Foreign Currency Translation The local currency has been primarily used as the functional currency throughout the world. Translation gains and losses of those operations that use local currency as the functional currency are included in the consolidated balance sheets in "Accumulated other comprehensive loss" ("AOCL"). For certain subsidiaries, the U.S. dollar is used as the functional currency. This occurs when the subsidiary operates in an economic environment where the products produced and sold are tied to U.S. dollar-denominated markets, or when the foreign subsidiary operates in a hyper-inflationary environment. Where the U.S. dollar is used as the functional currency, foreign currency translation gains and losses are reflected in income. 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. These accruals are adjusted periodically as assessment and remediation efforts progress or as additional technical or legal information becomes available. Accruals for environmental liabilities are included in the consolidated balance sheets in “Accrued and other current liabilities” and “Other noncurrent obligations” at undiscounted amounts. Accruals for related insurance or other third-party recoveries for environmental liabilities are recorded when it is probable that a recovery will be realized and are included in the consolidated balance sheets in “Accounts and notes receivable - Other.” Environmental costs are capitalized if the costs extend the life of the property, increase its capacity and/or mitigate or prevent contamination from future operations. Environmental costs are also capitalized in recognition of legal asset retirement obligations resulting from the acquisition, construction and/or normal operation of a long-lived asset. Costs related to environmental contamination treatment and cleanup are charged to expense. Estimated future incremental operations, maintenance and management costs directly related to remediation are accrued when such costs are probable and reasonably estimable. Cash and Cash Equivalents Cash and cash equivalents include time deposits and investments with maturities of three months or less at the time of purchase. Financial Instruments The Company calculates the fair value of financial instruments using quoted market prices when available. When quoted market prices are not available for financial instruments, the Company uses standard pricing models with market-based inputs that take into account the present value of estimated future cash flows. The Company utilizes derivatives to manage exposures to foreign currency exchange rates, commodity prices and interest rate risk. The fair values of all derivatives are recognized as assets or liabilities at the balance sheet date. Changes in the fair values of these instruments are reported in income or AOCL, depending on the use of the derivative and whether the Company has elected hedge accounting treatment. Gains and losses on derivatives that are designated and qualify as cash flow hedging instruments are recorded in AOCL until the underlying transactions are recognized in income. Gains and losses on derivative and non-derivative instruments used as hedges of the Company’s net investment in foreign operations are recorded in AOCL as part of the cumulative translation adjustment. Prior to the adoption of Accounting Standards Update ("ASU") 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" in 2018, the ineffective portions of hedges, if any, were recognized in income immediately. See Note 2 for additional information. Gains and losses on derivatives designated and qualifying as fair value hedging instruments, as well as the offsetting losses and gains on the hedged items, are reported in income in the same accounting period. Derivatives not designated as hedging instruments are marked-to-market at the end of each accounting period with the results included in income. Inventories Inventories are stated at the lower of cost or net realizable value. The method of determining cost for each subsidiary varies among last-in, first-out (“LIFO”); first-in, first-out (“FIFO”); and average cost, and is used consistently from year to year. At December 31, 2018, approximately 34 percent , 57 percent and 9 percent of the Company's inventories were accounted for under the LIFO, FIFO and average cost methods, respectively. At December 31, 2017 , approximately 32 percent , 59 percent and 9 percent of the Company's inventories were accounted for under the LIFO, FIFO and average cost methods, respectively. The Company routinely exchanges and swaps raw materials and finished goods with other companies to reduce delivery time, freight and other transportation costs. These transactions are treated as non-monetary exchanges and are valued at cost. Property Land, buildings and equipment, including property under capital lease agreements, are carried at cost less accumulated depreciation. Depreciation is based on the estimated service lives of depreciable assets and is calculated using the straight-line method, unless the asset was capitalized before 1997 when the declining balance method was used. Fully depreciated assets are retained in property and accumulated depreciation accounts until they are removed from service. In the case of disposals, assets and related accumulated depreciation are removed from the accounts, and the net amounts, less proceeds from disposal, are included in income. Impairment and Disposal of Long-Lived Assets The Company evaluates long-lived assets and certain identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When undiscounted future cash flows are not expected to be sufficient to recover an asset’s carrying amount, the asset is written down to its fair value based on bids received from third parties or a discounted cash flow analysis based on market participant assumptions. Long-lived assets to be disposed of by sale, if material, are classified as held for sale and reported at the lower of carrying amount or fair value less cost to sell, and depreciation is ceased. Long-lived assets to be disposed of other than by sale are classified as held and used until they are disposed of and reported at the lower of carrying amount or fair value, and depreciation is recognized over the remaining useful life of the assets. Goodwill and Other Intangible Assets The Company records goodwill when the purchase price of a business combination exceeds the estimated fair value of net identified tangible and intangible assets acquired. Goodwill is tested for impairment at the reporting unit level annually in the fourth quarter, or more frequently when events or changes in circumstances indicate that the fair value of a reporting unit has more likely than not declined below its carrying value. When testing goodwill for impairment, the Company may first assess qualitative factors. If an initial qualitative assessment identifies that it is more likely than not that the fair value of a reporting unit is less than its carrying value, additional quantitative testing is performed. The Company may also elect to skip the qualitative testing and proceed directly to the quantitative testing. If the quantitative testing indicates that goodwill is impaired, an impairment charge is recognized based on the difference between the reporting unit's carrying value and its fair value. The Company primarily utilizes a discounted cash flow methodology to calculate the fair value of its reporting units. Finite-lived intangible assets such as purchased customer lists, developed technology, patents, trademarks and software, are amortized over their estimated useful lives, generally on a straight-line basis for periods ranging primarily from 3 to 20 years. Indefinite-lived intangible assets are reviewed for impairment or obsolescence annually, or more frequently when events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable. If impaired, intangible assets are written down to fair value based on discounted cash flows. Asset Retirement Obligations The Company records asset retirement obligations as incurred and reasonably estimable, including obligations for which the timing and/or method of settlement are conditional on a future event that may or may not be within the control of the Company. The fair values of obligations are recorded as liabilities on a discounted basis and are accreted over time for the change in present value. Costs associated with the liabilities are capitalized and amortized over the estimated remaining useful life of the asset, generally for periods of 10 years or less. Investments Investments in debt securities, primarily held by the Company’s insurance operations, are classified as trading, available-for-sale or held-to-maturity. Investments classified as trading are reported at fair value with unrealized gains and losses related to mark-to-market adjustments included in income. Those classified as available-for-sale are reported at fair value with unrealized gains and losses recorded in AOCL. Those classified as held-to-maturity are recorded at amortized cost. The cost of investments sold is determined by FIFO or specific identification. Investments in equity securities, primarily held by the Company’s insurance operations, with a readily determinable fair value are reported at fair value with unrealized gains and losses related to mark-to-market adjustments included in income. Equity securities without a readily determinable fair value are accounted for at cost, adjusted for impairments and observable price changes in orderly transactions. The Company routinely reviews its investments for declines in fair value below the cost basis. When events or changes in circumstances indicate the carrying value of an asset may not be recoverable, the security is written down to fair value, establishing a new cost basis. Revenue Effective with the January 1, 2018 adoption of ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," and the associated ASUs (collectively, "Topic 606"), the Company recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. To determine revenue recognition for the arrangements that the Company determines are within the scope of Topic 606, the Company performs the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. See Note 5 for additional information. Revenue related to the Company's insurance operations includes third-party insurance premiums, which are earned over the terms of the related insurance policies and reinsurance contracts. In periods prior to the adoption of Topic 606, the Company's accounting policy was to recognize revenue when it was realized or realizable, and the earnings process was complete. Revenue for product sales was recognized as risk and title to the product transferred to the customer, which usually occurred at the time shipment was made. As such, title to the product passed when the product was delivered to the freight carrier. The Company’s standard terms of delivery were included in its contracts of sale, order confirmation documents and invoices. Revenue related to the initial licensing of patent and technology was recognized when earned; revenue related to running royalties was recognized according to licensee production levels. Severance Costs The Company routinely reviews its operations around the world in an effort to ensure competitiveness across its businesses and geographic regions. When the reviews result in a workforce reduction related to the shutdown of facilities or other optimization activities, severance benefits are provided to employees primarily under the Company’s ongoing benefit arrangements. These severance costs are accrued once management commits to a plan of termination and it becomes probable that employees will be entitled to benefits at amounts that can be reasonably estimated. Integration and Separation Costs The Company classifies expenses related to the Merger and the ownership restructure of Dow Silicones as "Integration and separation costs" in the consolidated statements of income. Merger-related costs include: costs incurred to prepare for and close the Merger, post-Merger integration expenses and costs incurred to prepare for the separation of AgCo and SpecCo and the receipt of ECP. The Dow Silicones-related costs include costs incurred to prepare for and close the ownership restructure, as well as integration expenses. These costs primarily consist of financial advisor, information technology, legal, accounting, consulting and other professional advisory fees associated with preparation and execution of these activities. Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities using enacted tax rates. The effect of a change in tax rates on deferred tax assets or liabilities is recognized in income in the period that includes the enactment date. The Company uses the portfolio approach for releasing income tax effects from AOCL. Effective with the Merger, TDCC and DuPont were subsidiaries of DowDuPont. Prior to the separation, TDCC was included in DowDuPont's consolidated tax groups and related income tax returns within certain jurisdictions. The Company will continue to record a separate tax liability for its share of the taxable income and tax attributes and obligations on DowDuPont’s consolidated income tax returns following a formula consistent with the economic sharing of tax attributes and obligations. The Company and DuPont compute the amount due to DowDuPont for their share of taxable income and tax attributes and obligations on DowDuPont’s consolidated tax return. The amounts reported as income tax payable or receivable represent the Company’s payment obligation (or refundable amount) to DowDuPont based on a theoretical tax liability calculated based on the methodologies agreed, elected or required in each combined or consolidated filing jurisdiction. The Company recognizes the financial statement effects of an uncertain income tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. The Company accrues for other tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated. The current portion of uncertain income tax positions is included in “Income taxes payable” and the long-term portion is included in “Other noncurrent obligations” in the consolidated balance sheets. Provision is made for taxes on undistributed earnings of foreign subsidiaries and related companies to the extent that such earnings are not deemed to be permanently invested. See Note 10 for further information relating to the enactment of the Tax Cuts and Jobs Act ("The Act"). Earnings per Common Share The calculation of earnings per common share is based on the weighted-average number of the Company's common shares outstanding for the applicable period. The calculation of diluted earnings per common share reflects the effect of all potential common shares that were outstanding during the respective periods, unless the effect of doing so is antidilutive. Dividends Prior to the Merger, TDCC declared dividends of $1.38 per share in 2017 ( $1.84 per share in 2016), based on the historical number of shares of common stock of TDCC held by shareholders of record for each dividend. Effective with the Merger, TDCC no longer had publicly traded common stock. TDCC's common shares were owned solely by its parent company, DowDuPont, prior to separation, and TDCC's Board of Directors determined whether or not there would be a dividend distribution to DowDuPont. See Note 26 for additional information. |
RECENT ACCOUNTING GUIDANCE
RECENT ACCOUNTING GUIDANCE | 12 Months Ended |
Dec. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING GUIDANCE | RECENT ACCOUNTING GUIDANCE In the fourth quarter of 2018, the Company early adopted ASU 2018-14, "Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans," which, as part of the Financial Accounting Standards Board ("FASB") disclosure framework project, removes disclosures that are no longer considered cost beneficial, clarifies the specific requirements of certain disclosures and adds new disclosure requirements that are considered relevant for employers that sponsor defined benefit pension and/or other postretirement benefit plans. The new standard is effective for fiscal years ending after December 15, 2020, and early adoption is permitted. The new guidance should be applied on a retrospective basis for all periods presented. See Note 21 for updated disclosures for defined benefit pension and other postretirement benefit plans. In the second quarter of 2018, the Company early adopted ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities," which amends the hedge accounting recognition and presentation under Topic 815, with the objectives of improving the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities and simplifying the application of hedge accounting by preparers. The new standard expands the strategies eligible for hedge accounting, relaxes the timing requirements of hedge documentation and effectiveness assessments, and permits, in certain cases, the use of qualitative assessments on an ongoing basis to assess hedge effectiveness. The new guidance also requires new disclosures and presentation. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted in any interim or annual period after issuance of the ASU. Entities must adopt the new guidance by applying a modified retrospective approach to hedging relationships existing as of the adoption date. The adoption of the new guidance did not have a material impact on the consolidated financial statements. In the second quarter of 2018, the Company early adopted ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income," which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from The Act, which was enacted on December 22, 2017, and requires certain disclosures about stranded tax effects. An entity has the option of applying the new guidance at the beginning of the period of adoption or retrospectively to each period (or periods) in which the tax effects related to items remaining in accumulated other comprehensive income are recognized. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and early adoption is permitted, including adoption in an interim period for reporting periods in which the financial statements have not yet been issued. The Company's adoption of the new standard was applied prospectively at the beginning of the second quarter of 2018, with a reclassification of the stranded tax effects as a result of the The Act from accumulated other comprehensive loss to retained earnings. In the first quarter of 2018, the Company adopted ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," which is the new comprehensive revenue recognition standard that supersedes the revenue recognition requirements in Topic 605, "Revenue Recognition," and most industry specific guidance. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to a customer in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In 2015 and 2016, the FASB issued additional ASUs related to Topic 606 that delayed the effective date of the guidance and clarified various aspects of the new revenue guidance, including principal versus agent considerations, identification of performance obligations, and accounting for licenses, and included other improvements and practical expedients. The new guidance was effective for annual and interim periods beginning after December 15, 2017. The Company elected to adopt the new guidance using the modified retrospective transition method for all contracts not completed as of the date of adoption. The Company recognized the cumulative effect of applying the new revenue standard as an adjustment to the opening balance of retained earnings at the beginning of the first quarter of 2018. The comparative periods have not been restated and continue to be accounted for under Topic 605. The adoption of the new guidance did not have a material impact on the consolidated financial statements. See Note 5 for additional disclosures regarding the Company's contracts with customers as well as the impact of adopting Topic 606. In the first quarter of 2018, the Company adopted ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Changes to the current guidance primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company applied the amendments in the new guidance by means of a cumulative-effect adjustment to the opening balance of retained earnings at the beginning of the first quarter of 2018. The adoption of the new guidance did not have a material impact on the consolidated financial statements. See Note 23 for additional information. In the first quarter of 2018, the Company adopted ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," which addresses diversity in practice in how certain cash receipts and cash payments are presented and classified in the statements of cash flows and addresses eight specific cash flow issues. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. A key provision in the new guidance impacted the presentation of proceeds from interests in certain trade accounts receivable conduits, which were retrospectively reclassified from "Operating Activities" to "Investing Activities" in the consolidated statements of cash flows. In the first quarter of 2018, the Company adopted ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory," which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments were effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The new guidance was applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings at the beginning of the first quarter of 2018. The adoption of this guidance did not have a material impact on the consolidated financial statements. In the first quarter of 2018, the Company adopted ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash," which clarifies how entities should present restricted cash and restricted cash equivalents in the statements of cash flows, and as a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statements of cash flows. An entity with a material balance of restricted cash and restricted cash equivalents must disclose information about the nature of the restrictions. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The new guidance changed the presentation of restricted cash in the consolidated statements of cash flows and was implemented on a retrospective basis in the first quarter of 2018. In the first quarter of 2018, the Company adopted ASU 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost," which amends the requirements related to the income statement presentation of the components of net periodic benefit cost for employer sponsored defined benefit pension and other postretirement benefit plans. Under the new guidance, an entity must disaggregate and present the service cost component of net periodic benefit cost in the same income statement line items as other employee compensation costs arising from services rendered during the period, and only the service cost component will be eligible for capitalization. Other components of net periodic benefit cost must be presented separately from the line items that includes the service cost. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Entities were required to use a retrospective transition method to adopt the requirement for separate income statement presentation of the service cost and other components, and a prospective transition method to adopt the requirement to limit the capitalization of benefit cost to the service component. Accordingly, in the first quarter of 2018, the Company used a retrospective transition method to reclassify net periodic benefit cost, other than the service component, from "Cost of sales," "Research and development expenses" and "Selling, general and administrative expenses" to "Sundry income (expense) - net" in the consolidated statements of income. Accounting Guidance Issued But Not Adopted at December 31, 2018 In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," and associated ASUs related to Topic 842, which requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The new guidance requires that a lessee recognize assets and liabilities for leases, and recognition, presentation and measurement in the financial statements will depend on its classification as a finance or operating lease. In addition, the new guidance will require disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. Lessor accounting remains largely unchanged from current U.S. GAAP but does contain some targeted improvements to align with the new revenue recognition guidance issued in 2014 (Topic 606). The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and early adoption was permitted. The Company had a cross-functional team in place to evaluate and implement the new guidance and had substantially completed the implementation of a third-party software solution to facilitate compliance with accounting and reporting requirements. The team reviewed existing lease arrangements and collected and loaded a significant portion of the lease portfolio into the software. The Company enhanced accounting systems and updated business processes and controls related to the new guidance for leases. Collectively, these activities enabled the Company to meet the new accounting and disclosure requirements upon adoption in the first quarter of 2019. The ASU requires a modified retrospective transition approach, applying the new standard to all leases existing at the date of initial adoption. An entity may choose to use either (1) the effective date or (2) the beginning of the earliest comparative period presented in the financial statements at the date of initial application. The Company elected to apply the transition requirements at the January 1, 2019, effective date rather than at the beginning of the earliest comparative period presented. This approach allowed for a cumulative effect adjustment in the period of adoption, and prior periods will not be restated. In addition, the Company elected the package of practical expedients permitted under the transition guidance, which does not require reassessment of prior conclusions related to contracts containing a lease, lease classification and initial direct lease costs. As an accounting policy election, the Company will exclude short-term leases (term of 12 months or less) from the balance sheet presentation and will account for non-lease and lease components in a contract as a single lease component for all asset classes. The Company finalized the evaluation of the January 1, 2019 impact, and the result was an increase of lease-related assets and liabilities of $2.3 billion in the consolidated balance sheets. The impact on the Company's consolidated statements of income and consolidated statements of cash flows was not material. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement," which is part of the FASB disclosure framework project to improve the effectiveness of disclosures in the notes to the financial statements. The amendments in the new guidance remove, modify and add certain disclosure requirements related to fair value measurements covered in Topic 820, "Fair Value Measurement." The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for either the entire standard or only the requirements that modify or eliminate the disclosure requirements, with certain requirements applied prospectively, and all other requirements applied retrospectively to all periods presented. The Company is currently evaluating the impact of adopting this guidance. In August 2018, the FASB issued ASU 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract," which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Topic 350, "Intangibles - Goodwill and Other" to determine which implementation costs to capitalize as assets or expense as incurred. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted and an entity can elect to apply the new guidance on a prospective or retrospective basis. The Company is currently evaluating the impact of adopting this guidance. |
MERGER WITH DUPONT MERGER WITH
MERGER WITH DUPONT MERGER WITH DUPONT | 12 Months Ended |
Dec. 31, 2018 | |
MERGER WITH DUPONT [Abstract] | |
Business Combination Disclosure [Text Block] | MERGER WITH DUPONT Effective August 31, 2017, TDCC and DuPont completed the merger of equals transaction contemplated by the Merger Agreement, by and among TDCC, DuPont, DowDuPont, Diamond Merger Sub, Inc. and Orion Merger Sub, Inc. Pursuant to the Merger Agreement, (i) Diamond Merger Sub, Inc. was merged with and into TDCC, with TDCC surviving the merger as a subsidiary of DowDuPont (the "Diamond Merger") and (ii) Orion Merger Sub, Inc. was merged with and into DuPont, with DuPont surviving the merger as a subsidiary of DowDuPont (the "Orion Merger" and, together with the Diamond Merger, the "Mergers"). Following the consummation of the Mergers, each of TDCC and DuPont became subsidiaries of DowDuPont. Subsequent to the Merger, TDCC and 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. Upon completion of the Diamond Merger, each share of common stock, par value $2.50 per share, of TDCC ("TDCC Common Stock") (excluding any shares of TDCC Common Stock that were held in treasury immediately prior to the effective time of the Diamond Merger, which were automatically canceled and retired for no consideration) was converted into the right to receive one fully paid and non-assessable share of common stock, par value $0.01 per share, of DowDuPont ("DowDuPont Common Stock"). As provided in the Merger Agreement, at the effective time of the Mergers, (i) all options, deferred stock, performance deferred stock and other equity awards relating to shares of TDCC Common Stock outstanding immediately prior to the effective time of the Mergers were generally automatically converted into options and deferred stock and other equity awards relating to shares of DowDuPont Common Stock after giving effect to appropriate adjustments to reflect the Mergers and otherwise generally on the same terms and conditions as applied under the applicable plans and award agreements immediately prior to the effective time of the Mergers. See Note 22 for additional information on the conversion of the equity awards. In the third quarter of 2017, as a result of the Diamond Merger and the Merger, TDCC recorded a reduction in "Treasury stock" of $935 million , a reduction in "Common stock" of $3,107 million and an increase in "Additional paid in capital" of $2,172 million . At September 1, 2017, TDCC had 100 shares of common stock issued and outstanding, par value $0.01 per share, owned solely by its parent, DowDuPont. On August 31, 2017, following the Diamond Merger, TDCC requested that the New York Stock Exchange ("NYSE") withdraw the shares of TDCC Common Stock from listing on the NYSE and filed a Form 25 with the SEC to report that the shares of TDCC Common Stock are no longer listed on the NYSE. The shares of TDCC Common Stock were suspended from trading on the NYSE prior to the open of trading on September 1, 2017. As a condition of the regulatory approval of the Merger, TDCC and DuPont agreed to certain closing conditions, which are as follows: • TDCC divested its global Ethylene Acrylic Acid copolymers and ionomers business ("EAA Business") to SK Global Chemical Co., Ltd., on September 1, 2017, as part of a divestiture commitment given to the European Commission ("EC") in connection with the EC's conditional approval of the Merger granted on March 27, 2017. See Note 7 for additional information on this transaction. • DuPont divested its Cereal Broadleaf Herbicides and Chewing Insecticides portfolios as well as its Crop Protection research and development ("R&D") pipeline and organization (excluding seed treatment, nematicides, late-stage R&D programs and certain personnel needed to support marketed products and R&D programs that will remain with DuPont) (collectively, the "DuPont Divested Assets") to FMC Corporation ("FMC") on November 1, 2017, as part of the EC's conditional approval granted on March 27, 2017. Also on November 1, 2017, DuPont completed its acquisition of FMC's Health and Nutrition business, excluding its Omega-3 products. • On May 2, 2017, TDCC and DuPont announced that China's Ministry of Commerce ("MOFCOM") granted conditional regulatory approval for the companies' proposed merger of equals which included commitments already made to the EC including DuPont's divestiture of the DuPont Divested Assets and TDCC's divestiture of the EAA Business. In addition, TDCC and DuPont made commitments related to the supply and distribution in China of certain herbicide and insecticide ingredients and formulations for rice crops for five years after the closing of the Merger. • TDCC divested a select portion of Dow AgroSciences' corn seed business in Brazil to CITIC Agri Fund on November 30, 2017. The divestiture was part of the commitment given to Brazil's Administrative Council for Economic Defense ("CADE") in connection with the CADE's conditional approval of the Merger granted on May 17, 2017, which was incremental to commitments already made to the EC, China and regulatory agencies in other jurisdictions. This divestiture was included in discontinued operations of the Company. • On June 15, 2017, TDCC and DuPont announced that a proposed agreement had been reached with the Antitrust Division of the United States Department of Justice that permitted the companies to proceed with the proposed merger of equals transaction. The proposed agreement was consistent with commitments already made to the EC. ACQUISITIONS Ownership Restructure of Dow Silicones On June 1, 2016, the Company announced the closing of the transaction with Corning Incorporated ("Corning"), Dow Silicones and HS Upstate Inc., (“Splitco”), pursuant to which Corning exchanged with Dow Silicones its 50 percent equity interest in Dow Silicones for 100 percent of the stock of Splitco which held Corning's historical proportional interest in the Hemlock Semiconductor Group ("HSC Group") and approximately $4.8 billion in cash. As a result, Dow Silicones, previously a 50:50 joint venture between the Company and Corning, became a wholly owned subsidiary of the Company. At June 1, 2016, the Company's equity interest in Dow Silicones, excluding the HSC Group, was $1,968 million and was subsequently remeasured to fair value. In connection with the ownership restructure, on May 31, 2016, Dow Silicones incurred $4.5 billion of indebtedness in order to fund the contribution of cash to Splitco. Effective with the separation from DowDuPont on April 1, 2019, a portion of the Company's ownership in Dow Silicones, including the HSC Group, was distributed to DowDuPont and included in discontinued operations. As a result, the amounts below reflect only those balances included in continuing operations. See Notes 14 and 17 for additional information. As a result of the Dow Silicones ownership restructure, the Company recognized a non-taxable gain of $1,617 million in the second quarter of 2016, net of closing costs and other comprehensive loss related to the Company's remaining ownership interest in Dow Silicones. The gain was included in "Sundry income (expense) - net" in the consolidated statements of income and related to the Performance Materials & Coatings segment. The Company recognized a tax benefit of $93 million on the ownership restructure in the second quarter of 2016, primarily due to the reassessment of a previously recognized deferred tax liability related to the basis difference in the Company’s investment in Dow Silicones. In addition, the fair value step-up of "Inventories" acquired was an increase of $213 million , which was expensed to "Cost of sales" over a three-month period beginning on June 1, 2016, and related to the Performance Materials & Coatings segment. In 2018, the Company recorded a pretax loss of $20 million for post-closing adjustments related to the Dow Silicones ownership restructure, included in "Sundry income (expense) - net" in the consolidated statements of income and related to the Performance Materials & Coatings segment. The ownership restructure resulted in the recognition of $2,251 million of "Goodwill" which was not deductible for tax purposes. Goodwill largely consisted of expected synergies resulting from the ownership restructure. Cost synergies were achieved through a combination of workforce consolidation and savings from actions such as harmonizing energy contracts at large sites, optimizing warehouse and logistics footprints, implementing materials and maintenance best practices, combining information technology service structures and leveraging existing R&D knowledge management systems. The Company evaluated the disclosure requirements under ASC 805 "Business Combinations" and determined the ownership restructure was not considered a material business combination for purposes of disclosing the revenue and earnings of Dow Silicones since the date of the ownership restructure as well as supplemental pro forma information. Beginning in June 2016, the results of Dow Silicones, excluding the HSC Group, were fully consolidated in the Company’s consolidated statements of income. Prior to June 2016, the Company’s 50 percent share of Dow Silicones’ results of operations was reported in “Equity in earnings of nonconsolidated affiliates” in the consolidated statements of income. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2018 | |
Business Combination, Description [Abstract] | |
ACQUISITIONS | MERGER WITH DUPONT Effective August 31, 2017, TDCC and DuPont completed the merger of equals transaction contemplated by the Merger Agreement, by and among TDCC, DuPont, DowDuPont, Diamond Merger Sub, Inc. and Orion Merger Sub, Inc. Pursuant to the Merger Agreement, (i) Diamond Merger Sub, Inc. was merged with and into TDCC, with TDCC surviving the merger as a subsidiary of DowDuPont (the "Diamond Merger") and (ii) Orion Merger Sub, Inc. was merged with and into DuPont, with DuPont surviving the merger as a subsidiary of DowDuPont (the "Orion Merger" and, together with the Diamond Merger, the "Mergers"). Following the consummation of the Mergers, each of TDCC and DuPont became subsidiaries of DowDuPont. Subsequent to the Merger, TDCC and 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. Upon completion of the Diamond Merger, each share of common stock, par value $2.50 per share, of TDCC ("TDCC Common Stock") (excluding any shares of TDCC Common Stock that were held in treasury immediately prior to the effective time of the Diamond Merger, which were automatically canceled and retired for no consideration) was converted into the right to receive one fully paid and non-assessable share of common stock, par value $0.01 per share, of DowDuPont ("DowDuPont Common Stock"). As provided in the Merger Agreement, at the effective time of the Mergers, (i) all options, deferred stock, performance deferred stock and other equity awards relating to shares of TDCC Common Stock outstanding immediately prior to the effective time of the Mergers were generally automatically converted into options and deferred stock and other equity awards relating to shares of DowDuPont Common Stock after giving effect to appropriate adjustments to reflect the Mergers and otherwise generally on the same terms and conditions as applied under the applicable plans and award agreements immediately prior to the effective time of the Mergers. See Note 22 for additional information on the conversion of the equity awards. In the third quarter of 2017, as a result of the Diamond Merger and the Merger, TDCC recorded a reduction in "Treasury stock" of $935 million , a reduction in "Common stock" of $3,107 million and an increase in "Additional paid in capital" of $2,172 million . At September 1, 2017, TDCC had 100 shares of common stock issued and outstanding, par value $0.01 per share, owned solely by its parent, DowDuPont. On August 31, 2017, following the Diamond Merger, TDCC requested that the New York Stock Exchange ("NYSE") withdraw the shares of TDCC Common Stock from listing on the NYSE and filed a Form 25 with the SEC to report that the shares of TDCC Common Stock are no longer listed on the NYSE. The shares of TDCC Common Stock were suspended from trading on the NYSE prior to the open of trading on September 1, 2017. As a condition of the regulatory approval of the Merger, TDCC and DuPont agreed to certain closing conditions, which are as follows: • TDCC divested its global Ethylene Acrylic Acid copolymers and ionomers business ("EAA Business") to SK Global Chemical Co., Ltd., on September 1, 2017, as part of a divestiture commitment given to the European Commission ("EC") in connection with the EC's conditional approval of the Merger granted on March 27, 2017. See Note 7 for additional information on this transaction. • DuPont divested its Cereal Broadleaf Herbicides and Chewing Insecticides portfolios as well as its Crop Protection research and development ("R&D") pipeline and organization (excluding seed treatment, nematicides, late-stage R&D programs and certain personnel needed to support marketed products and R&D programs that will remain with DuPont) (collectively, the "DuPont Divested Assets") to FMC Corporation ("FMC") on November 1, 2017, as part of the EC's conditional approval granted on March 27, 2017. Also on November 1, 2017, DuPont completed its acquisition of FMC's Health and Nutrition business, excluding its Omega-3 products. • On May 2, 2017, TDCC and DuPont announced that China's Ministry of Commerce ("MOFCOM") granted conditional regulatory approval for the companies' proposed merger of equals which included commitments already made to the EC including DuPont's divestiture of the DuPont Divested Assets and TDCC's divestiture of the EAA Business. In addition, TDCC and DuPont made commitments related to the supply and distribution in China of certain herbicide and insecticide ingredients and formulations for rice crops for five years after the closing of the Merger. • TDCC divested a select portion of Dow AgroSciences' corn seed business in Brazil to CITIC Agri Fund on November 30, 2017. The divestiture was part of the commitment given to Brazil's Administrative Council for Economic Defense ("CADE") in connection with the CADE's conditional approval of the Merger granted on May 17, 2017, which was incremental to commitments already made to the EC, China and regulatory agencies in other jurisdictions. This divestiture was included in discontinued operations of the Company. • On June 15, 2017, TDCC and DuPont announced that a proposed agreement had been reached with the Antitrust Division of the United States Department of Justice that permitted the companies to proceed with the proposed merger of equals transaction. The proposed agreement was consistent with commitments already made to the EC. ACQUISITIONS Ownership Restructure of Dow Silicones On June 1, 2016, the Company announced the closing of the transaction with Corning Incorporated ("Corning"), Dow Silicones and HS Upstate Inc., (“Splitco”), pursuant to which Corning exchanged with Dow Silicones its 50 percent equity interest in Dow Silicones for 100 percent of the stock of Splitco which held Corning's historical proportional interest in the Hemlock Semiconductor Group ("HSC Group") and approximately $4.8 billion in cash. As a result, Dow Silicones, previously a 50:50 joint venture between the Company and Corning, became a wholly owned subsidiary of the Company. At June 1, 2016, the Company's equity interest in Dow Silicones, excluding the HSC Group, was $1,968 million and was subsequently remeasured to fair value. In connection with the ownership restructure, on May 31, 2016, Dow Silicones incurred $4.5 billion of indebtedness in order to fund the contribution of cash to Splitco. Effective with the separation from DowDuPont on April 1, 2019, a portion of the Company's ownership in Dow Silicones, including the HSC Group, was distributed to DowDuPont and included in discontinued operations. As a result, the amounts below reflect only those balances included in continuing operations. See Notes 14 and 17 for additional information. As a result of the Dow Silicones ownership restructure, the Company recognized a non-taxable gain of $1,617 million in the second quarter of 2016, net of closing costs and other comprehensive loss related to the Company's remaining ownership interest in Dow Silicones. The gain was included in "Sundry income (expense) - net" in the consolidated statements of income and related to the Performance Materials & Coatings segment. The Company recognized a tax benefit of $93 million on the ownership restructure in the second quarter of 2016, primarily due to the reassessment of a previously recognized deferred tax liability related to the basis difference in the Company’s investment in Dow Silicones. In addition, the fair value step-up of "Inventories" acquired was an increase of $213 million , which was expensed to "Cost of sales" over a three-month period beginning on June 1, 2016, and related to the Performance Materials & Coatings segment. In 2018, the Company recorded a pretax loss of $20 million for post-closing adjustments related to the Dow Silicones ownership restructure, included in "Sundry income (expense) - net" in the consolidated statements of income and related to the Performance Materials & Coatings segment. The ownership restructure resulted in the recognition of $2,251 million of "Goodwill" which was not deductible for tax purposes. Goodwill largely consisted of expected synergies resulting from the ownership restructure. Cost synergies were achieved through a combination of workforce consolidation and savings from actions such as harmonizing energy contracts at large sites, optimizing warehouse and logistics footprints, implementing materials and maintenance best practices, combining information technology service structures and leveraging existing R&D knowledge management systems. The Company evaluated the disclosure requirements under ASC 805 "Business Combinations" and determined the ownership restructure was not considered a material business combination for purposes of disclosing the revenue and earnings of Dow Silicones since the date of the ownership restructure as well as supplemental pro forma information. Beginning in June 2016, the results of Dow Silicones, excluding the HSC Group, were fully consolidated in the Company’s consolidated statements of income. Prior to June 2016, the Company’s 50 percent share of Dow Silicones’ results of operations was reported in “Equity in earnings of nonconsolidated affiliates” in the consolidated statements of income. |
SEPARATION FROM DOWDUPONT SEPAR
SEPARATION FROM DOWDUPONT SEPARATION FROM DOWDUPONT | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Separation from DowDuPont [Text Block] | SEPARATION FROM DOWDUPONT On April 1, 2019, DowDuPont completed the previously announced separation of its materials science business. The separation was effected by way of a pro rata distribution of all of the then-issued and outstanding shares of Dow Inc. common stock to DowDuPont stockholders of record as of the close of business, Eastern Time, on March 21, 2019 (the “Record Date”). The shareholders of record of DowDuPont received one share of Dow Inc. common stock, par value $0.01 per share, for every three shares of DowDuPont common stock, par value $0.01 per share, held as of the Record Date ("Distribution Ratio"). No fractional shares of Dow Inc. common stock were issued. Instead, cash in lieu of any fractional shares was paid to DowDuPont registered shareholders. The number of shares of Dow Inc. common stock issued on April 1, 2019 was 748.8 million shares. Dow Inc. is now an independent, publicly traded company and Dow Inc. common stock is listed on the NYSE under the symbol “DOW.” Dow Inc. common stock began regular-way trading on April 2, 2019, the first day following the distribution. Effective April 1, 2019, TDCC became a wholly owned subsidiary of Dow Inc. As of the effective date and time of the distribution, DowDuPont does not beneficially own any equity interest in Dow and will no longer consolidate Dow and its consolidated subsidiaries into its financial results. Beginning in the second quarter of 2019, Dow’s consolidated financial results reflect the results of Dow Inc. and its consolidated subsidiaries - that is, TDCC after giving effect to the distribution of AgCo and SpecCo and the receipt of ECP. The consolidated financial results of Dow for periods prior to April 1, 2019, reflect the distribution of AgCo and SpecCo as discontinued operations for each period presented as well as reflect the receipt of ECP as a common control transaction from the closing of the Merger on August 31, 2017. On April 1, 2019, Dow Inc. received a cash contribution of $2,024 million from DowDuPont as part of the internal reorganization and business realignment steps between Dow Inc., TDCC and DowDuPont. Receipt of ECP As the receipt of ECP was accounted for as a transfer between entities under common control, the consolidated financial statements have been retrospectively adjusted to reflect the receipt of ECP from the closing of the Merger on August 31, 2017. All intercompany transactions have been eliminated in consolidation. The ECP assets received and liabilities assumed were recorded at DowDuPont's historical cost basis as reflected in the following table: ECP Assets Received and Liabilities Assumed on Aug 31, 2017 Carrying value In millions Cash and cash equivalents $ 1 Accounts and notes receivable - Trade 169 Accounts and notes receivable - Other 32 Inventories 529 Other current assets 6 Investment in nonconsolidated affiliates 116 Net property 817 Goodwill 3,617 Other intangible assets 1,484 Deferred income tax assets 9 Total Assets $ 6,780 Accounts payable - Trade 102 Accounts payable - Other 29 Accrued and other current liabilities 31 Deferred income tax liabilities 683 Pension and other postretirement benefits - noncurrent 6 Other noncurrent obligations 3 Total Liabilities $ 854 Net Assets (impact to "Retained earnings") $ 5,926 Subsequent to the receipt of ECP, there were measurement period adjustments and other activity of $233 million for the period of September 1, 2017 through December 31, 2017, and $182 million for the twelve months ended December 31, 2018, that resulted in a reduction to "Retained Earnings" and are not included in the table above. The following table provides "Net sales" and "Income (loss) from continuing operations before income taxes" of ECP included in the Company's results from the closing of the Merger on August 31, 2017: ECP Results of Operations 2018 Sep 1 - Dec 31, 2017 In millions Net sales $ 1,512 $ 558 Income (loss) from continuing operations before income taxes 1 $ 178 $ (46 ) 1. Includes the amortization of the fair value step-up of inventory recognized in "Cost of Sales" of $2 million in 2018 and $120 million for the period of September 1, 2017 through December 31, 2017. Distribution of AgCo and SpecCo Upon distribution, the Company retrospectively adjusted the previously issued consolidated financial statements and presented AgCo and SpecCo as discontinued operations based on the guidance in Accounting Standards Codification (“ASC”) 205-20 “Discontinued Operations” (“ASC 205-20”). The results of operations of AgCo and SpecCo are presented as discontinued operations in the consolidated statements of income and are summarized in the table that follows: Results of Operations of AgCo and SpecCo 2018 2017 2016 In millions Net sales $ 12,187 $ 12,337 $ 11,894 Cost of sales 7,668 7,769 7,615 Research and development expenses 761 854 848 Selling, general and administrative expenses 1,108 1,143 1,152 Amortization of intangibles 249 255 228 Restructuring and asset related charges - net 411 376 16 Integration and separation costs — 18 — Equity in earnings of nonconsolidated affiliates 400 372 254 Sundry income (expense) - net (13 ) 245 862 Interest income 26 40 33 Interest expense and amortization of debt discount 56 61 31 Income from discontinued operations before income taxes $ 2,347 $ 2,518 $ 3,153 Provision for income taxes 512 636 227 Income from discontinued operations, net of tax $ 1,835 $ 1,882 $ 2,926 The carrying amount of major classes of assets and liabilities related to the distribution of AgCo and SpecCo consisted of the following: Carrying Values of AgCo and SpecCo 1 Dec 31, 2018 Dec 31, 2017 In millions Accounts and notes receivable - Trade $ 2,768 $ 2,124 Accounts and notes receivable - Other 773 545 Inventories 2,826 2,763 Other current assets 151 117 Investment in nonconsolidated affiliates 612 749 Other investments 2 2 Noncurrent receivables 35 54 Net property 3,014 3,043 Goodwill 7,590 7,622 Other intangible assets 1,830 2,075 Deferred income tax assets 239 169 Deferred charges and other assets 60 16 Total assets of discontinued operations $ 19,900 $ 19,279 Notes payable 7 2 Long-term debt due within one year 4 4 Accounts payable - Trade 1,118 1,477 Accounts payable - Other 868 631 Income taxes payable 234 207 Accrued and other current liabilities 716 687 Long-Term Debt 5 8 Deferred income tax liabilities 568 741 Pension and other postretirement benefits - noncurrent 306 307 Other noncurrent obligations 662 807 Total liabilities of discontinued operations $ 4,488 $ 4,871 1. Includes assets and liabilities of consolidated variable interest entities related to discontinued operations. In connection with the separation, Dow Inc. entered into certain agreements with DowDuPont and/or Corteva, Inc. ("Corteva"), a subsidiary of DowDuPont which was formed to serve as the parent company for DowDuPont’s agriculture business, including the following: Separation and Distribution Agreement, Tax Matters Agreement, Employee Matters Agreement and Intellectual Property Cross-License Agreements. In addition to establishing the terms of the separation, these agreements provide a framework for Dow’s interaction with DowDuPont and Corteva after the separation. In addition, the Company has certain product and service agreements with DowDuPont and Corteva that were considered intercompany transactions prior to the separation, but are trade transactions subsequent to the separation. These transactions are reflected as trade transactions in the financial statement recast. Based on the Company’s assessment of the specific factors identified in ASC Topic 205, “Presentation of Financial Statements,” the Company concluded that these agreements do not constitute significant continuing involvement in AgCo and SpecCo. |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Revenue Recognition The majority of the Company's revenue is derived from product sales. In 2018 , 99 percent of the Company's sales related to product sales ( 98 percent in 2017 and 99 percent in 2016 ). The remaining sales were primarily related to the Company's insurance operations and licensing of patents and technologies. As of January 1, 2018, the Company accounts for revenue in accordance with Topic 606, "Revenue from Contracts with Customers," except for revenue from insurance operations, which is accounted for in accordance with Topic 944, "Financial Services - Insurance." Product Sales Product sales consist of sales of the Company's products to manufacturers and distributors. The Company considers order confirmations or purchase orders, which in some cases are governed by master supply agreements, to be contracts with a customer. Product sale contracts are generally short-term contracts where the time between order confirmation and satisfaction of all performance obligations is less than one year. However, the Company has some long-term contracts which can span multiple years. Revenues from product sales are recognized when the customer obtains control of the product, which occurs at a point in time, usually upon shipment, with payment terms typically in the range of 30 to 60 days after invoicing, depending on business and geographic region. When the Company performs shipping and handling activities after the transfer of control to the customer (e.g., when control transfers prior to shipment), these are considered fulfillment activities, and accordingly, the costs are accrued when the related revenue is recognized. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues. The Company elected to use the practical expedient to expense cash and non-cash sales incentives, as the amortization period for the costs to obtain the contract would have been one year or less. Certain long-term contracts include a series of distinct goods that are delivered continuously to the customer through a pipeline (e.g., feedstocks). For these types of product sales, the Company invoices the customer in an amount that directly corresponds with the value to the customer of the Company’s performance to date. As a result, the Company recognizes revenue based on the amount billable to the customer in accordance with the right to invoice practical expedient. The transaction price includes estimates for reductions in revenue from customer rebates and right of returns on product sales. These amounts are estimated based upon the most likely amount of consideration to which the customer will be entitled. All estimates are based on historical experience, anticipated performance and the Company’s best judgment at the time to the extent it is probable that a significant reversal of revenue recognized will not occur. All estimates for variable consideration are reassessed periodically. The Company elected the practical expedient to not adjust the amount of consideration for the effects of a significant financing component for all instances in which the period between payment and transfer of the goods will be one year or less. For contracts with multiple performance obligations, the Company allocates the transaction price to each performance obligation based on the relative standalone selling price. The standalone selling price is the observable price which depicts the price as if sold to a similar customer in similar circumstances. Patents, Trademarks and Licenses The Company enters into licensing arrangements in which it licenses certain rights of its patents and technology to customers. Revenue from the majority of the Company’s licenses for patents and technology is derived from sales-based royalties. The Company estimates the amount of sales-based royalties it expects to be entitled to based on historical sales to the customer. For the remaining revenue from licensing arrangements, payments are typically received from the Company's licensees based on billing schedules established in each contract. Revenue is recognized when the performance obligation is satisfied. Remaining Performance Obligations Remaining performance obligations represent the transaction price allocated to unsatisfied or partially unsatisfied performance obligations. At December 31, 2018 , the Company had unfulfilled performance obligations for the licensing of technology of $407 million , and expects revenue to be recognized for the remaining performance obligations over the next one to six years. The remaining performance obligations are for product sales that have expected durations of one year or less, product sales of materials delivered through a pipeline for which the Company has elected the right to invoice practical expedient, or variable consideration attributable to royalties for licenses of patents and technology. The Company has received advance payments from customers related to long-term supply agreements that are deferred and recognized over the life of the contract, with remaining contract terms that range up to 22 years. The Company will have rights to future consideration for revenue recognized when product is delivered to the customer. These payments are included in "Accrued and other current liabilities" and "Other noncurrent obligations" in the consolidated balance sheets. Disaggregation of Revenue The Company disaggregates its revenue from contracts with customers by segment and business, and geographic region, as the Company believes it best depicts the nature, amount, timing and uncertainty of its revenue and cash flows. See details in the tables below: Net Trade Sales by Segment and Business 2018 In millions Coatings & Performance Monomers $ 3,979 Consumer Solutions 5,698 Performance Materials & Coatings $ 9,677 Industrial Solutions $ 4,812 Polyurethanes & Construction Chemicals 10,615 Others 20 Industrial Intermediates & Infrastructure $ 15,447 Hydrocarbons & Energy $ 7,587 Packaging and Specialty Plastics 16,608 Packaging & Specialty Plastics $ 24,195 Corporate $ 285 Total $ 49,604 Net Trade Sales by Geographic Region 2018 In millions U.S. & Canada $ 17,809 EMEAI 1 17,406 Asia Pacific 9,404 Latin America 4,985 Total $ 49,604 1. Europe, Middle East, Africa and India. Contract Balances The Company receives payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include amounts related to the Company’s contractual right to consideration for completed performance obligations not yet invoiced. Contract liabilities include payments received in advance of performance under the contract, and are realized when the associated revenue is recognized under the contract. "Contract liabilities - current" primarily reflects deferred revenue from prepayments from customers for product to be delivered in a time period of 12 months or less. "Contract liabilities - noncurrent" includes advance payments that the Company has received from customers related to long-term supply agreements and royalty payments that are deferred and recognized over the life of the contract. Revenue recognized in 2018 from amounts included in contract liabilities at the beginning of the period was approximately $205 million . In 2018, the amount of contract assets reclassified to receivables as a result of the right to the transaction consideration becoming unconditional was approximately $12 million . The Company did not recognize any asset impairment charges related to contract assets in 2018. The following table summarizes the contract balances at December 31, 2018 and 2017: Contract Balances Dec 31, 2018 Topic 606 Adjustments Jan 1, 2018 Dec 31, 2017 In millions Accounts and notes receivable - Trade $ 5,646 $ — $ 5,386 Contract assets - current 1 $ 19 $ 1 $ — Contract assets - noncurrent 2 $ 1 $ — $ — Contract liabilities - current 3 $ 134 $ 21 $ 116 Contract liabilities - noncurrent 4 $ 1,318 $ 47 $ 1,365 1. Included in "Other current assets" in the consolidated balance sheets. 2. Included in "Deferred charges and other assets" in the consolidated balance sheets. 3. Included in "Accrued and other current liabilities" in the consolidated balance sheets. 4. Included in "Other noncurrent obligations" in the consolidated balance sheets. |
DIVESTITURES
DIVESTITURES | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DIVESTITURES | DIVESTITURES Merger Remedy - Divestiture of the Global Ethylene Acrylic Acid Copolymers and Ionomers Business On February 2, 2017, as a condition of regulatory approval of the Merger, the Company announced it would divest its global EAA Business to SK Global Chemical Co., Ltd. The divestiture included production assets located in Freeport, Texas, and Tarragona, Spain, along with associated intellectual property and product trademarks. Under terms of the purchase agreement, SK Global Chemical Co., Ltd will honor certain customer and supplier contracts and other agreements. On September 1, 2017, the sale was completed for $296 million , net of working capital adjustments, costs to sell and other adjustments, with proceeds subject to customary post-closing adjustments. As a result, in 2017, the Company recognized a pretax gain of $227 million on the sale, included in "Sundry income (expense) - net" in the consolidated statements of income and related to the Packaging & Specialty Plastics segment. The Company evaluated the divestiture of the EAA Business and determined it did not represent a strategic shift that had a major effect on the Company’s operations and financial results and did not qualify as an individually significant component of the Company. As a result, this divestiture was not reported in discontinued operations. |
RESTRUCTURING, GOODWILL IMPAIRM
RESTRUCTURING, GOODWILL IMPAIRMENT AND ASSET RELATED CHARGES - NET | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING, GOODWILL IMPAIRMENT AND ASSET RELATED CHARGES - NET | RESTRUCTURING, GOODWILL IMPAIRMENT AND ASSET RELATED CHARGES - NET The "Restructuring, goodwill impairment and asset related charges - net" line in the consolidated statements of income is used to record charges for restructuring programs, goodwill impairments, and other asset related charges, which includes other asset impairments. DowDuPont Cost Synergy Program In September and November 2017, DowDuPont approved post-merger restructuring actions under the DowDuPont Cost Synergy Program (the "Synergy Program") which was designed to integrate and optimize the organization following the Merger and in preparation for the business separations. The Company expected (prior to the impact of any discontinued operations) to record total pretax restructuring charges of approximately $1.3 billion , which included initial estimates of approximately $525 million to $575 million of severance and related benefit costs; $400 million to $440 million of asset write-downs and write-offs, and $290 million to $310 million of costs associated with exit and disposal activities. The restructuring charges below reflect charges from continuing operations. The Company recorded pretax restructuring charges of $399 million in 2017, consisting of severance and related benefit costs of $307 million , asset write-downs and write-offs of $87 million and costs associated with exit and disposal activities of $5 million . For the year ended December 31, 2018 , the Company recorded pretax restructuring charges of $184 million , consisting of severance and related benefit costs of $137 million , asset write-downs and write-offs of $33 million and costs associated with exit and disposal activities of $14 million . The impact of these charges is shown as "Restructuring, goodwill impairment and asset related charges ‑ net" in the consolidated statements of income. The Company expects to record additional restructuring charges during 2019 and substantially complete the Synergy Program by the end of 2019. The following table summarizes the activities related to the Synergy Program. At December 31, 2018 , $205 million was included in "Accrued and other current liabilities" ( $170 million at December 31, 2017 ) and $12 million was included in "Other noncurrent obligations" ( $105 million at December 31, 2017 ) in the consolidated balance sheets. DowDuPont Synergy Program Severance and Related Benefit Costs Asset Write-downs and Write-offs Costs Associated with Exit and Disposal Activities Total In millions 2017 restructuring charges Performance Materials & Coatings $ — $ 9 $ 2 $ 11 Industrial Intermediates & Infrastructure — 12 — 12 Packaging & Specialty Plastics — 33 3 36 Corporate 307 33 — 340 Total 2017 restructuring charges $ 307 $ 87 $ 5 $ 399 Charges against the reserve — (87 ) — (87 ) Cash payments (37 ) — — (37 ) Reserve balance at Dec 31, 2017 $ 270 $ — $ 5 $ 275 2018 restructuring charges Performance Materials & Coatings $ — $ 7 $ — $ 7 Industrial Intermediates & Infrastructure — — 11 11 Packaging & Specialty Plastics — 10 3 13 Corporate 137 16 — 153 Total 2018 restructuring charges $ 137 $ 33 $ 14 $ 184 Charges against the reserve — (33 ) — (33 ) Cash payments (197 ) — (12 ) (209 ) Reserve balance at Dec 31, 2018 $ 210 $ — $ 7 $ 217 Asset Write-downs and Write-offs The restructuring charges related to the write-down and write-off of assets in 2017 totaled $87 million . Details regarding the write-downs and write-offs are as follows: • The Company recorded a charge of $22 million for asset write-downs and write-offs aligned with an energy project, including the write-off of capital projects and other non-manufacturing assets in Packaging & Specialty Plastics. • The Company recorded a charge of $65 million for other miscellaneous asset write-downs and write-offs, including the shutdown of several small manufacturing facilities and the write-off of non-manufacturing assets, certain corporate facilities and data centers. The charge related to Performance Materials & Coatings ( $9 million ), Industrial Intermediates & Infrastructure ( $12 million ), Packaging & Specialty Plastics ( $11 million ) and Corporate ( $33 million ). These manufacturing facilities will be shut down primarily by the end of 2019. The restructuring charges related to the write-down and write-off of assets in 2018 are as follows: • The Company recorded a charge of $33 million for other miscellaneous asset write-downs and write-offs, including the shutdown of several small manufacturing facilities and the write-off of non-manufacturing assets and certain corporate facilities. The charge related to Performance Materials & Coatings ( $7 million ), Packaging & Specialty Plastics ($ 10 million ) and Corporate ( $16 million ). These manufacturing facilities will be shut down by the end of the third quarter of 2019. Costs Associated with Exit and Disposal Activities The restructuring charges for costs associated with exit and disposal activities, including contract cancellation penalties and environmental remediation liabilities, totaled $5 million in 2017 and $14 million in 2018. 2016 Restructuring On June 27, 2016, TDCC's Board approved a restructuring plan that incorporated actions related to the ownership restructure of Dow Silicones. These actions, aligned with TDCC’s value growth and synergy targets, resulted in a global workforce reduction of approximately 2,500 positions, with most of these positions resulting from synergies related to the ownership restructure of Dow Silicones. As a result of these actions, the Company recorded pretax restructuring charges of $436 million in the second quarter of 2016, consisting of severance and related benefit costs of $255 million , asset write-downs and write-offs of $153 million and costs associated with exit and disposal activities of $28 million . The impact of these charges is shown as "Restructuring, goodwill impairment and asset related charges - net" in the consolidated statements of income. The 2016 restructuring activities were substantially complete at June 30, 2018, with remaining liabilities for severance and related benefit costs and costs associated with exit and disposal activities to be settled over time. The following table summarizes the activities related to the Company's 2016 restructuring reserve. 2016 Restructuring Charges Severance and Related Benefit Costs Asset Write-downs and Write-offs Costs Associated with Exit and Disposal Activities Total In millions Performance Materials & Coatings $ — $ 27 $ 15 $ 42 Industrial Intermediates & Infrastructure — 70 13 83 Packaging & Specialty Plastics — 10 — 10 Corporate 255 46 — 301 2016 restructuring charges $ 255 $ 153 $ 28 $ 436 Charges against the reserve — (153 ) — (153 ) Cash payments (66 ) — (1 ) (67 ) Reserve balance at Dec 31, 2016 $ 189 $ — $ 27 $ 216 Adjustments to the reserve 1 — — (7 ) (7 ) Cash payments (137 ) — (3 ) (140 ) Reserve balance at Dec 31, 2017 $ 52 $ — $ 17 $ 69 Adjustments to the reserve 1 (8 ) — 14 6 Cash payments (38 ) — (4 ) (42 ) Reserve balance at Jun 30, 2018 $ 6 $ — $ 27 $ 33 1. Included in "Restructuring, goodwill impairment and asset related charges - net" in the consolidated statements of income. Charges for severance and related benefit costs related to Corporate and costs associated with exit and disposal activities related to Performance Materials & Coatings. Asset Write-downs and Write-offs The restructuring charges related to the write-down and write-off of assets in the second quarter of 2016 totaled $153 million . Details regarding the write-downs and write-offs are as follows: • The Company recorded a charge of $70 million for asset write-downs and write-offs including the shutdown of a solar manufacturing facility in Midland, Michigan; the write-down of a solar facility in Milpitas, California; and, the write-off of capital projects and in-process research and development. The charge was related to Industrial Intermediates & Infrastructure. The Midland facility was shut down in the third quarter of 2016. • To enhance competitiveness and streamline costs associated with the ownership restructure of Dow Silicones, a silicones manufacturing facility in Yamakita, Japan, was shut down in the fourth quarter of 2018. In addition, an idled facility was shut down in the second quarter of 2016. As a result, the Company recorded a charge of $25 million related to Performance Materials & Coatings. • The Company recorded a charge of $25 million related to Corporate to close and/or consolidate certain corporate facilities and data centers. • A decision was made to shut down a small manufacturing facility and to write-down other non-manufacturing assets, including a cost method investment and certain aircraft. As a result, the Company recorded a charge of $33 million related to Performance Materials & Coatings ( $2 million ), Packaging & Specialty Plastics ( $10 million ) and Corporate ( $21 million ). The manufacturing facility was shut down in the second quarter of 2016. Costs Associated with Exit and Disposal Activities The restructuring charges for costs associated with exit and disposal activities, including contract cancellation penalties, environmental remediation and warranty liabilities, were $28 million in the second quarter of 2016. The Company expects to incur additional costs in the future related to its restructuring activities. Future costs are expected to include demolition costs related to closed facilities and restructuring plan implementation costs; these costs will be recognized as incurred. The Company also expects to incur additional employee-related costs, including involuntary termination benefits, related to its other optimization activities. These costs cannot be reasonably estimated at this time. Goodwill Impairment Upon completion of the goodwill impairment testing in the fourth quarter of 2017, the Company determined the fair value of the Coatings & Performance Monomers reporting unit was lower than its carrying amount. As a result, the Company recorded an impairment charge of $1,491 million in the fourth quarter of 2017, included in “Restructuring, goodwill impairment and asset related charges - net” in the consolidated statements of income and related to Performance Materials & Coatings. See Note 15 for additional information on the impairment charge. Asset Related Charges 2018 Charges In 2018, the Company recognized an additional pretax impairment charge of $34 million related primarily to capital additions made to a biopolymers manufacturing facility in Santa Vitoria, Minas Gerais, Brazil, which was impaired in 2017. The impairment charge was included in “Restructuring, goodwill impairment and asset related charges - net” in the consolidated statements of income and related to the Packaging & Specialty Plastics segment. See Notes 24 and 25 for additional information. 2017 Charges In the fourth quarter of 2017, the Company recognized a $622 million pretax impairment charge related to a biopolymers manufacturing facility in Santa Vitoria, Minas Gerais, Brazil. The Company determined it would not pursue an expansion of the facility’s ethanol mill into downstream derivative products, primarily as a result of cheaper ethane-based production as well as the Company’s new assets coming online on the U.S. Gulf Coast which can be used to meet growing market demands in Brazil. As a result of this decision, cash flow analysis indicated the carrying amount of the impacted assets was not recoverable. The impairment charge was included in “Restructuring, goodwill impairment and asset related charges - net” in the consolidated statements of income and related to the Packaging & Specialty Plastics segment. See Notes 24 and 25 for additional information. The Company also recognized other pretax impairment charges of $246 million in the fourth quarter of 2017, including charges related to manufacturing assets of $159 million , an equity method investment of $81 million and other assets of $6 million . The impairment charges were included in "Restructuring, goodwill impairment and asset related charges - net" in the consolidated statements of income and related to Performance Materials & Coatings ( $83 million ), Industrial Intermediates & Infrastructure ( $5 million ), Packaging & Specialty Plastics ( $58 million ) and Corporate ( $100 million ). See Note 24 for additional information. 2016 Charges In the fourth quarter of 2016, the Company recognized a $143 million pretax impairment charge related to its equity interest in AgroFresh Solutions, Inc. (“AFSI”) due to a decline in the market value of AFSI. The impairment charge was included in "Restructuring, goodwill impairment and asset related charges - net" in the consolidated statements of income and related to the Corporate segment. See Notes 14 , 24 and 25 for additional information. |
SUPPLEMENTARY INFORMATION
SUPPLEMENTARY INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Supplementary Information [Abstract] | |
SUPPLEMENTARY INFORMATION | SUPPLEMENTARY INFORMATION Sundry Income (Expense) – Net In millions 2018 2017 2016 Non-operating pension and other postretirement benefit plan net credits (costs) 1 $ 123 $ (676 ) $ 35 Gain on sales of other assets and investments 18 117 157 Foreign exchange losses (119 ) (72 ) (126 ) Post-closing adjustments on divestiture of MEGlobal 20 — (1 ) Gain and post-closing adjustments related to Dow Silicones ownership restructure 2 (20 ) — 1,617 Loss on early extinguishment of debt 3 (54 ) — — Gain on divestiture of the EAA Business 4 — 227 — Gain related to Nova patent infringement award 5 — 137 — Impact of split-off of chlorine value chain — 7 6 Settlement of the urethane matters class action lawsuit and opt-out cases 5 — — (1,235 ) Costs associated with transactions and productivity actions — — (41 ) Loss on divestitures — — (25 ) Implant liability adjustment 5 — — 16 Reclassification of cumulative translation adjustments 4 8 — Other - net 124 98 114 Total sundry income (expense) – net $ 96 $ (154 ) $ 517 1. Presented in accordance with ASU 2017-07. See Notes 2 and 21 for additional information. 2. See Note 6 for additional information. 3. See Note 17 for additional information. 4. See Note 7 for additional information. 5. See Note 18 for additional information. Accrued and Other Current Liabilities “Accrued and other current liabilities” were $2,931 million at December 31, 2018 and $3,389 million at December 31, 2017 . Accrued payroll, which is a component of "Accrued and other current liabilities," was $759 million at December 31, 2018 and $956 million at December 31, 2017 . No other components of "Accrued and other current liabilities" were more than 5 percent of total current liabilities. Supplemental Cash Flow Information The following table shows cash paid for interest and income taxes for the years ended December 31, 2018 , 2017 and 2016 : Supplemental Cash Flow Information 2018 2017 2016 In millions Cash paid during year for: Interest, net of amounts capitalized $ 1,143 $ 1,115 $ 1,162 Income taxes $ 1,193 $ 1,259 $ 1,306 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES On December 22, 2017, The Act was enacted. The Act reduced the U.S. federal corporate income tax rate from 35 percent to 21 percent, required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously deferred, created new provisions related to foreign sourced earnings, eliminated the domestic manufacturing deduction and moved to a hybrid territorial system. At December 31, 2017, the Company had not completed its accounting for the tax effects of The Act; however, the Company made a reasonable estimate of the effects on its existing deferred tax balances and the one-time transition tax. In accordance with Staff Accounting Bulletin 118 ("SAB 118"), income tax effects of The Act were refined upon obtaining, preparing, and analyzing additional information during the measurement period. At December 31, 2018, the Company had completed its accounting for the tax effects of The Act. • As a result of The Act, the Company remeasured its U.S. federal deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21 percent. The Company recorded a cumulative benefit of $81 million ( $79 million benefit in 2018 and $2 million benefit in 2017) to “Provision (credit) for income taxes on continuing operations” in the consolidated statements of income with respect to the remeasurement of the Company's deferred tax balances. • The Act required a mandatory deemed repatriation of post-1986 undistributed foreign earnings and profits, which results in a one-time transition tax. The Company recorded a cumulative charge of $789 million ( $85 million benefit in 2018 and $874 million charge in 2017) to "Provision (credit) for income taxes on continuing operations" in the consolidated statements of income with respect to the one-time transition tax. • In 2018, the Company recorded an indirect impact of The Act related to prepaid tax on the intercompany sale of inventory. The amount recorded related to inventory was a charge of $38 million to "Provision (credit) for income taxes on continuing operations" in the consolidated statements of income. • For tax years beginning after December 31, 2017, The Act introduced new provisions for U.S. taxation of certain global intangible low-taxed income (“GILTI”). The Company has made the policy election to record any liability associated with GILTI in the period in which it is incurred. Geographic Allocation of Income and Provision (Credit) for Income Taxes on Continuing Operations In millions 2018 2017 2016 Income (loss) from continuing operations before income taxes Domestic 1, 2 $ 745 $ (2,226 ) $ (991 ) Foreign 1 3,004 2,463 2,251 Income from continuing operations before income taxes $ 3,749 $ 237 $ 1,260 Current tax expense (benefit) Federal $ 324 $ (864 ) $ 164 State and local 13 4 21 Foreign 901 971 606 Total current tax expense $ 1,238 $ 111 $ 791 Deferred tax expense (benefit) Federal 3 $ (318 ) $ 1,499 $ (1,029 ) State and local (32 ) 85 (59 ) Foreign (79 ) (171 ) 79 Total deferred tax expense (benefit) $ (429 ) $ 1,413 $ (1,009 ) Provision (credit) for income taxes on continuing operations $ 809 $ 1,524 $ (218 ) Income (loss) from continuing operations, net of tax $ 2,940 $ (1,287 ) $ 1,478 1. In 2016, the domestic component of "Income from continuing operations before income taxes" included approximately $1.4 billion of income from portfolio actions. See Notes 6 and 7 for additional information. 2. In 2017, the domestic component of "Income from continuing operations before income taxes" included approximately $1.4 billion of expense related to goodwill impairment and litigation settlements. In 2016, the domestic component of "Income from continuing operations before income taxes" included approximately $2.6 billion of expenses related to the urethane matters class action lawsuit and opt-out cases settlements, asbestos-related charge and charges for environmental matters. See Notes 15 and 18 for additional information. 3. The 2018 and 2017 amounts reflect the tax impact of The Act which accelerated the utilization of tax credits and required remeasurement of all U.S. deferred tax assets and liabilities. The 2016 amount reflects the tax impact of accrued one-time items and reduced domestic income which limited the utilization of tax credits. In 2017, as a result of the Merger and subsequent change in the Company's ownership, certain net operating loss carryforwards available for the Company’s consolidated German tax group were derecognized. In addition, the sale of stock between two consolidated subsidiaries in 2014 created a gain that was initially deferred for tax purposes. This deferred gain became taxable as a result of activities executed in anticipation of the business separations. As a result, in 2017, the Company recorded a charge of $267 million to “Provision (credit) for income taxes on continuing operations” in the consolidated statements of income. Reconciliation to U.S. Statutory Rate 2018 2017 2016 Statutory U.S. federal income tax rate 21.0 % 35.0 % 35.0 % Equity earnings effect (3.3 ) (52.7 ) (1.7 ) Foreign income taxed at rates other than the statutory U.S. federal income tax rate 1 6.7 (61.2 ) (14.9 ) U.S. tax effect of foreign earnings and dividends (0.7 ) (8.4 ) 12.5 Unrecognized tax benefits 0.2 13.5 (2.7 ) Divestitures and ownership restructuring activities 2 0.8 142.0 (48.2 ) Impact of U.S. tax reform (3.4 ) 367.8 — State and local income taxes 0.4 11.4 2.9 Goodwill impairment — 220.8 — Excess tax benefits from stock-based compensation 3 (1.0 ) (39.7 ) — Other - net 0.9 14.5 (0.2 ) Effective Tax Rate 21.6 % 643.0 % (17.3 )% 1. Includes the impact of valuation allowances in foreign jurisdictions. 2. See Notes 6 and 7 for additional information. 3. Reflects the impact of the adoption of ASU 2016-09, "Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting," which was adopted January 1, 2017, and resulted in the recognition of excess tax benefits related to stock-based compensation in "Provision (credit) for income taxes on continuing operations." Deferred Tax Balances at Dec 31 2018 2017 In millions Assets Liabilities Assets Liabilities Property $ 406 $ 2,519 $ 488 $ 2,467 Tax loss and credit carryforwards 2,079 — 1,687 — Postretirement benefit obligations 2,115 143 2,411 149 Other accruals and reserves 1,220 151 1,409 174 Intangibles 157 954 126 1,019 Inventory 53 239 52 232 Investments 190 84 275 87 Other – net 620 247 427 405 Subtotal $ 6,840 $ 4,337 $ 6,875 $ 4,533 Valuation allowances (1,225 ) — (1,255 ) — Total $ 5,615 $ 4,337 $ 5,620 $ 4,533 Operating Loss and Tax Credit Carryforwards at Dec 31 2018 2017 In millions Assets Assets Operating loss carryforwards Expire within 5 years $ 245 $ 222 Expire after 5 years or indefinite expiration 1,196 1,255 Total operating loss carryforwards $ 1,441 $ 1,477 Tax credit carryforwards Expire within 5 years $ 32 $ 39 Expire after 5 years or indefinite expiration 606 171 Total tax credit carryforwards $ 638 $ 210 Total operating loss and tax credit carryforwards $ 2,079 $ 1,687 Undistributed earnings of foreign subsidiaries and related companies that are deemed to be permanently invested amounted to $6,014 million at December 31, 2018 and $6,218 million at December 31, 2017 . The Act imposed U.S. tax on all post-1986 foreign unrepatriated earnings accumulated through December 31, 2017 . Unrepatriated earnings generated after December 31, 2017 , are now subject to tax in the current year. All undistributed earnings are still subject to certain taxes upon repatriation, primarily where foreign withholding taxes apply. It is not practicable to calculate the unrecognized deferred tax liability on undistributed earnings. The following table provides a reconciliation of the Company's unrecognized tax benefits: Total Gross Unrecognized Tax Benefits In millions 2018 2017 2016 Total unrecognized tax benefits at Jan 1 $ 255 $ 231 $ 280 Decreases related to positions taken on items from prior years (8 ) (4 ) (12 ) Increases related to positions taken on items from prior years 1 68 37 153 Increases related to positions taken in the current year 2 2 12 135 Settlement of uncertain tax positions with tax authorities 1 — (12 ) (325 ) Decreases due to expiration of statutes of limitations (1 ) (9 ) — Foreign exchange gain (2 ) — — Total unrecognized tax benefits at Dec 31 $ 314 $ 255 $ 231 Total unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 235 $ 245 $ 225 Total amount of interest and penalties (benefit) recognized in "Provision (credit) for income taxes on continuing operations" $ (12 ) $ 2 $ (55 ) Total accrual for interest and penalties recognized in the consolidated balance sheets $ 109 $ 110 $ 89 1. The 2016 balance includes the impact of a settlement agreement related to a historical change in the legal ownership structure of a nonconsolidated affiliate discussed below. 2. The 2016 balance includes $126 million assumed in the Dow Silicones ownership restructure. On January 9, 2017, the U.S. Supreme Court denied certiorari in the Company’s tax treatment of partnerships and transactions associated with Chemtech, a wholly owned subsidiary. The Company has fully accrued the position and does not expect a future impact to “Provision (credit) for income taxes on continuing operations” in the consolidated statements of income as a result of the ruling. In the fourth quarter of 2016, a settlement of $206 million was reached on a tax matter associated with a historical change in the legal ownership structure of a nonconsolidated affiliate. As a result of the settlement, the Company recorded a charge of $13 million to “Provision (credit) for income taxes on continuing operations” in the consolidated statements of income. Prior to the separation, TDCC and its consolidated subsidiaries were included in DowDuPont's consolidated federal income tax group and consolidated tax return. Generally, the consolidated tax liability of the DowDuPont U.S. tax group for each year will be apportioned among the members of the consolidated group based on each member’s separate taxable income. TDCC and DuPont intend that, to the extent federal and/or state corporate income tax liabilities are reduced through the utilization of tax attributes of the other, settlement of any receivable and payable generated from the use of the other party’s sub-group attributes will be in accordance with a tax sharing agreement and/or tax matters agreement. Each year, the Company files tax returns in the various national, state and local income taxing jurisdictions in which it operates. These tax returns are subject to examination and possible challenge by the tax authorities. Positions challenged by the tax authorities may be settled or appealed by the Company. As a result, there is an uncertainty in income taxes recognized in the Company’s financial statements in accordance with accounting for income taxes and accounting for uncertainty in income taxes. The ultimate resolution of such uncertainties is not expected to have a material impact on the Company's results of operations. Tax years that remain subject to examination for the Company’s major tax jurisdictions are shown below: Tax Years Subject to Examination by Major Tax Jurisdiction at Dec 31, 2018 Earliest Open Year Jurisdiction Argentina 2011 Brazil 2006 Canada 2012 China 2008 Germany 2009 Italy 2013 The Netherlands 2016 Switzerland 2012 United States: Federal income tax 2004 State and local income tax 2004 The reserve for non-income tax contingencies related to issues in the United States and foreign locations was $91 million at December 31, 2018 and $110 million at December 31, 2017 . This is management’s best estimate of the potential liability for non-income tax contingencies. Inherent uncertainties exist in estimates of tax contingencies due to changes in tax law, both legislated and concluded through the various jurisdictions’ tax court systems. It is the opinion of the Company’s management that the possibility is remote that costs in excess of those accrued will have a material impact on the Company’s consolidated financial statements. |
EARNINGS PER SHARE (Notes)
EARNINGS PER SHARE (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | EARNINGS PER SHARE CALCULATIONS The following tables provide earnings per share calculations of Dow for the years ended December 31, 2018, 2017, and 2016. In accordance with the accounting guidance for earnings per share, earnings per share of TDCC is not presented as this information is not required in financial statements of wholly owned subsidiaries. Net Income (Loss) for Earnings Per Share Calculations 2018 2017 2016 In millions Income (loss) from continuing operations, net of tax $ 2,940 $ (1,287 ) $ 1,478 Net income attributable to noncontrolling interests - continuing operations (102 ) (102 ) (53 ) Preferred stock dividends 1, 2 — — (340 ) Net income attributable to participating securities - continuing operations 3 — (8 ) (14 ) Income (loss) from continuing operations attributable to common stockholders $ 2,838 $ (1,397 ) $ 1,071 Income from discontinued operations, net of tax $ 1,835 $ 1,882 $ 2,926 Net income attributable to noncontrolling interests - discontinued operations (32 ) (28 ) (33 ) Net income attributable to participating securities - discontinued operations 3 — (6 ) (8 ) Income from discontinued operations attributable to common stockholders $ 1,803 $ 1,848 $ 2,885 Net income attributable to common stockholders $ 4,641 $ 451 $ 3,956 Earnings Per Share Calculations - Basic 2018 2017 2016 Dollars per share Income (loss) from continuing operations attributable to common stockholders $ 3.80 $ (1.88 ) $ 1.57 Income from discontinued operations, net of tax 2.41 2.48 4.23 Net income attributable to common stockholders $ 6.21 $ 0.60 $ 5.80 Earnings Per Share Calculations - Diluted 2018 2017 2016 Dollars per share Income (loss) from continuing operations attributable to common stockholders $ 3.80 $ (1.88 ) $ 1.55 Income from discontinued operations, net of tax 2.41 2.48 4.18 Net income attributable to common stockholders $ 6.21 $ 0.60 $ 5.73 Share Count Information 2018 2017 2016 Shares in millions Weighted-average common shares - basic 4, 5, 6 747.2 744.8 681.6 Plus dilutive effect of equity compensation plans — — 9.3 Weighted-average common shares - diluted 4, 5, 6 747.2 744.8 690.9 Stock options and restricted stock units excluded from EPS calculations 7 — 1.1 1.1 1. On December 30, 2016, TDCC converted all shares of its Cumulative Convertible Perpetual Preferred Stock, Series A ("Preferred Stock") into shares of TDCC's common stock. As a result of this conversion, no shares of TDCC Preferred Stock are issued or outstanding. See Note 19 for additional information. 2. Preferred Stock dividends were not added back in the calculation of diluted earnings per share for the period ended December 31, 2016, because the effect of an assumed conversion of TDCC's Preferred Stock would have been antidilutive. 3. Restricted stock units (formerly termed deferred stock) are considered participating securities due to the Company's practice of paying dividend equivalents on unvested shares. 4. Share amounts for the year ended December 31, 2018 were based on 2,246.3 million DowDuPont common shares outstanding as of the Record Date for the April 1, 2019 distribution, less 4.6 million Employee Stock Ownership Plan ("ESOP") shares that had not been released and were not considered outstanding, adjusted for the Distribution Ratio. There was no dilutive effect for the year ended December 31, 2018 as the Company did not engage in activities giving rise to dilution. 5. Share amounts for the year ended December 31, 2017 were based on 2,246.3 million DowDuPont common shares outstanding as of the Record Date for the April 1, 2019 distribution, less 4.6 million ESOP shares that had not been released and were not considered outstanding, adjusted for the Distribution Ratio and further adjusted by 2.4 million shares for the effect of TDCC basic common shares outstanding during the pre-Merger period. The year ended December 31, 2017 reflected a loss from continuing operations, and as such, the basic share count was used for purposes of calculating earnings per share on a diluted basis. 6. Share amounts for the year ended December 31, 2016 were based on TDCC weighted average common shares outstanding of 1,108.1 million (basic) and 1,123.2 million (diluted), adjusted by a conversion factor of 0.6151 used to present TDCC shares of 1,214.8 million at the time of Merger on a basis that is equivalent to the Dow Inc. common shares at distribution of 747.2 million . 7. These outstanding options to purchase shares of common stock and restricted stock units were excluded from the calculation of diluted earnings per share because the effect of including them would have been antidilutive. For the year ended December 31, 2018, the Company did not engage in activities giving rise to dilution. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES The following table provides a breakdown of inventories: Inventories at Dec 31 In millions 2018 2017 Finished goods $ 4,313 $ 3,888 Work in process 1,335 906 Raw materials 674 631 Supplies 826 790 Total $ 7,148 $ 6,215 Adjustment of inventories to a LIFO basis (249 ) (170 ) Total inventories $ 6,899 $ 6,045 |
PROPERTY
PROPERTY | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY | PROPERTY The following table provides a breakdown of property: Property at Dec 31 Estimated Useful Lives (Years) 2018 2017 In millions Land and land improvements 0-25 $ 2,059 $ 1,868 Buildings 5-50 4,745 4,600 Machinery and equipment 3-25 40,250 38,131 Other property 3-50 5,084 4,969 Construction in progress — 1,846 3,241 Total property $ 53,984 $ 52,809 In millions 2018 2017 2016 Depreciation expense $ 2,174 $ 1,955 $ 1,729 Capitalized interest $ 88 $ 240 $ 243 |
NONCONSOLIDATED AFFILIATES
NONCONSOLIDATED AFFILIATES | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
NONCONSOLIDATED AFFILIATES | NONCONSOLIDATED AFFILIATES The Company’s investments in companies accounted for using the equity method (“nonconsolidated affiliates”) and dividends received from nonconsolidated affiliates are shown in the following tables: Investments in Nonconsolidated Affiliates at Dec 31 2018 1 2017 1 In millions Investment in nonconsolidated affiliates $ 3,320 $ 3,107 1. The carrying amount of the Company’s investments in nonconsolidated affiliates at December 31, 2018 , was $39 million less than its share of the investees’ net assets, ( $63 million less at December 31, 2017 ), exclusive of additional differences relating to EQUATE Petrochemical Company K.S.C.C. ("EQUATE") and AFSI, which are discussed separately in the disclosures that follow. Dividends Received from Nonconsolidated Affiliates 2018 2017 1 2016 In millions Dividends from nonconsolidated affiliates $ 663 $ 654 $ 612 1. Includes a non-cash dividend of $7 million . Except for AFSI, the nonconsolidated affiliates in which the Company has investments are privately held companies; therefore, quoted market prices are not available. Dow Silicones As a result of the Dow Silicones ownership restructure, Dow Silicones, previously a 50:50 joint venture between the Company and Corning, became a wholly owned subsidiary of the Company as of June 1, 2016. The Company's equity interest in Dow Silicones, which was previously classified as "Investment in nonconsolidated affiliates" in the consolidated balance sheets, was remeasured to fair value. See Note 6 for additional information on the Dow Silicones ownership restructure. EQUATE At December 31, 2018 , the Company had an investment balance in EQUATE of $131 million ( $42 million at December 31, 2017 ), which is classified as "Investment in nonconsolidated affiliates" in the consolidated balance sheets. The Company's investment in EQUATE was $502 million less than the Company's proportionate share of EQUATE's underlying net assets at December 31, 2018 ( $516 million less at December 31, 2017 ), which represents the difference between the fair values of certain MEGlobal assets acquired by EQUATE and the Company's related valuation on a U.S. GAAP basis. A basis difference of $184 million at December 31, 2018 ( $200 million at December 31, 2017 ) is being amortized over the remaining useful lives of the assets and the remainder is considered a permanent difference. AFSI On July 31, 2015, the Company sold its AgroFresh business to AFSI. Proceeds received on the divestiture of AgroFresh included 17.5 million common shares of AFSI, which were valued at $210 million and represented an approximate 35 percent ownership interest in AFSI. Based on the December 31, 2016 closing stock price of AFSI, the value of this investment would have been lower than the carrying value by $143 million . In the fourth quarter of 2016, the Company determined the decline in market value of AFSI was other-than-temporary and recognized a $143 million pretax impairment charge related to its equity interest in AFSI. The impairment charge was included in "Restructuring, goodwill impairment and asset related charges - net" in the consolidated statements of income and related to the Corporate segment. At December 31, 2018 , the Company's investment in AFSI was $101 million less than the Company's proportionate share of AFSI's underlying net assets ( $92 million less at December 31, 2017 ). This amount primarily relates to the other-than-temporary decline in the Company's investment in AFSI. On April 4, 2017, the Company and AFSI revised certain agreements related to the divestiture of the AgroFresh business and the Company entered into a stock purchase agreement to purchase up to 5,070,358 shares of AFSI's common stock, which represented approximately 10 percent of AFSI's common stock outstanding at signing of the agreement, subject to certain terms and conditions. On November 19, 2018, the stock purchase agreement concluded. At December 31, 2018 , the Company held a 42 percent ownership interest in AFSI ( 36 percent at December 31, 2017 ). See Notes 24 and 25 for further information on this investment. Sadara The Company and Saudi Arabian Oil Company formed Sadara Chemical Company ("Sadara") to build and operate a world-scale, fully integrated chemicals complex in Jubail Industrial City, Kingdom of Saudi Arabia. Sadara achieved its first polyethylene production in December 2015 and announced the start-up of its mixed feed cracker and a third polyethylene train (which added to the two polyethylene trains already in operation) in August 2016. Sadara achieved successful startup of its remaining production units in 2017. In 2018 , the Company entered into a shareholder loan reduction agreement with Sadara and converted $312 million of the remaining loan and accrued interest balance into equity. At December 31, 2018 , the Company's note receivable with Sadara was zero . In addition, in the fourth quarter of 2018, the Company waived $70 million of accounts receivable with Sadara, which was converted into equity. In 2017, the Company loaned $735 million to Sadara and converted $718 million into equity, and had a note receivable from Sadara of $275 million at December 31, 2017 , included in "Noncurrent receivables" in the consolidated balance sheets. Transactions with Nonconsolidated Affiliates The Company has service agreements with certain nonconsolidated affiliates, including contracts to manage the operations of manufacturing sites and the construction of new facilities; licensing and technology agreements; and marketing, sales, purchase, lease and sublease agreements. The Company sells excess ethylene glycol produced at the Company's manufacturing facilities in the United States and Europe to MEGlobal, a subsidiary of EQUATE. The Company also sells ethylene to MEGlobal as a raw material for its ethylene glycol plants in Canada. Sales of these products to MEGlobal represented 1 percent of total net sales in 2018 , 2017 and 2016 . Sales of ethylene glycol to MEGlobal are reflected in the Industrial Intermediates & Infrastructure segment and represented 2 percent of the segment's sales in 2018 , 2017 and 2016 . Sales of ethylene to MEGlobal are reflected in the Packaging & Specialty Plastics segment and represented 1 percent of the segment's sales in 2018 , 2017 and 2016 . The Company is responsible for marketing the majority of Sadara products outside of the Middle East zone through the Company’s established sales channels. Under this arrangement, the Company purchases and sells Sadara products for a marketing fee. Purchases of Sadara products represented 9 percent of "Cost of sales" in 2018 ( 4 percent in 2017 and not material in 2016). The Company purchases products from The SCG-Dow Group, primarily for marketing and distribution in Asia Pacific. Purchases of products from The SCG-Dow Group represented 2 percent of "Cost of sales" in 2018 ( 3 percent in 2017 and 2016 ). Sales to and purchases from other nonconsolidated affiliates were not material to the consolidated financial statements. Balances due to or due from nonconsolidated affiliates at December 31, 2018 and 2017 were as follows: Balances Due To or Due From Nonconsolidated Affiliates at Dec 31 2018 2017 In millions Accounts and notes receivable - Other $ 556 $ 417 Noncurrent receivables 8 282 Total assets $ 564 $ 699 Accounts payable - Other $ 1,347 $ 1,271 Principal Nonconsolidated Affiliates The Company had an ownership interest in 38 nonconsolidated affiliates at December 31, 2018 ( 39 at December 31, 2017 ). The Company's principal nonconsolidated affiliates and its ownership interest (direct and indirect) for each at December 31, 2018 , 2017 and 2016 are as follows: Principal Nonconsolidated Affiliates at Dec 31 Country Ownership Interest 2018 2017 2016 EQUATE Petrochemical Company K.S.C.C. Kuwait 42.5 % 42.5 % 42.5 % The Kuwait Olefins Company K.S.C.C. Kuwait 42.5 % 42.5 % 42.5 % The Kuwait Styrene Company K.S.C.C. Kuwait 42.5 % 42.5 % 42.5 % Map Ta Phut Olefins Company Limited 1 Thailand 32.77 % 32.77 % 32.77 % Sadara Chemical Company Saudi Arabia 35 % 35 % 35 % The SCG-Dow Group: Siam Polyethylene Company Limited Thailand 50 % 50 % 50 % Siam Polystyrene Company Limited Thailand 50 % 50 % 50 % Siam Styrene Monomer Co., Ltd. Thailand 50 % 50 % 50 % Siam Synthetic Latex Company Limited Thailand 50 % 50 % 50 % 1. The Company's effective ownership of Map Ta Phut Olefins Company Limited ("Map Ta Phut") is 32.77 percent , of which the Company directly owns 20.27 percent and indirectly owns 12.5 percent through its equity interest in Siam Polyethylene Company Limited. The Company’s investment in and equity earnings from its principal nonconsolidated affiliates are shown in the tables below: Investment in Principal Nonconsolidated Affiliates at Dec 31 2018 2017 In millions Investment in nonconsolidated affiliates $ 2,876 $ 2,657 Equity Earnings from Principal Nonconsolidated Affiliates 2018 2017 2016 1 In millions Equity in earnings of principal nonconsolidated affiliates $ 561 $ 347 $ 241 1. Equity in earnings of principal nonconsolidated affiliates for 2016 includes the results of Dow Silicones through May 31, 2016. The summarized financial information that follows represents the combined accounts (at 100 percent ) of the principal nonconsolidated affiliates. Summarized Balance Sheet Information at Dec 31 2018 2017 In millions Current assets $ 7,553 $ 6,833 Noncurrent assets 25,971 26,778 Total assets $ 33,524 $ 33,611 Current liabilities $ 5,163 $ 4,678 Noncurrent liabilities 19,089 20,100 Total liabilities $ 24,252 $ 24,778 Noncontrolling interests $ 72 $ 33 Summarized Income Statement Information 1 2018 2017 2016 2 In millions Sales $ 14,461 $ 11,629 $ 10,825 Gross profit $ 2,320 $ 1,992 $ 1,975 Income from continuing operations, net of tax $ 1,173 $ 689 $ 410 1. The results in this table reflect purchase and sale activity between certain principal nonconsolidated affiliates and the Company, as previously discussed in the "Transactions with Nonconsolidated Affiliates" section. 2. The summarized income statement information for 2016 includes the results of Dow Silicones through May 31, 2016. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The following table shows changes in the carrying amounts of goodwill by reportable segment for the years ended December 31, 2018 and 2017 : Goodwill Performance Materials & Coatings Industrial Intermediates & Infrastructure Packaging & Specialty Plastics Total In millions Balance at Jan 1, 2017 $ 4,938 $ 1,085 $ 1,518 $ 7,541 Divestiture of the EAA Business 1 — — (23 ) (23 ) Dissolution of joint venture 2 48 — — 48 Goodwill impairment (1,491 ) — — (1,491 ) Receipt of the ECP businesses 3 — — 3,617 3,617 Measurement period adjustment - ECP 3 — — (96 ) (96 ) Foreign currency impact 194 16 32 242 Other — — (5 ) (5 ) Balance at Dec 31, 2017 $ 3,689 $ 1,101 $ 5,043 $ 9,833 Foreign currency impact (39 ) (6 ) (24 ) (69 ) Measurement period adjustment - ECP 3 — — 82 82 Balance at Dec 31, 2018 $ 3,650 $ 1,095 $ 5,101 $ 9,846 1. On September 1, 2017, the Company divested its EAA Business to SK Global Chemical Co., Ltd. See Note 7 for additional information. 2. On December 31, 2017, the Company dissolved a crude acrylic acid joint venture. See Note 25 for additional information. 3. Goodwill recognized from the receipt of the ECP businesses as part of the separation from DowDuPont. See Note 4 for additional information. Effective with the Merger, the Company updated its reporting units to align with the level at which discrete financial information is available for review by management. A relative fair value method was used to reallocate goodwill for reporting units of which the composition had changed. The reporting units are: Coatings & Performance Monomers, Construction Chemicals, Consumer Solutions, Energy Solutions, Hydrocarbons & Energy, Industrial Solutions, Packaging and Specialty Plastics and Polyurethanes & Construction Chemicals. At December 31, 2017, goodwill was carried by all of these reporting units. In 2018, the Energy Solutions and Construction Chemicals reporting units were combined into Industrial Solutions and Polyurethanes & Construction Chemicals, respectively. At December 31, 2018, goodwill was carried by all reporting units. The separation from DowDuPont on April 1, 2019, did not impact the composition of the Company's six reporting units discussed above. The ECP businesses received as part of the separation from DowDuPont are included in the Hydrocarbons & Energy and Packaging and Specialty Plastics reporting units. Goodwill Impairments The carrying amounts of goodwill at December 31, 2018 and 2017 , were net of accumulated impairments of $1,491 million in Performance Materials & Coatings and $309 million in Industrial Intermediates & Infrastructure. Goodwill Impairment Testing The Company performs an impairment test of goodwill annually in the fourth quarter. In 2018 , the Company performed quantitative testing for 1 reporting unit ( 6 in 2017 and 2 in 2016 ) and a qualitative assessment was performed for the remaining reporting units. The qualitative assessments indicated that it was not more likely than not that fair value was less than the carrying value for those reporting units included in the qualitative test. The quantitative testing conducted in 2018 and 2016 concluded that no goodwill impairments existed. Upon completion of the quantitative testing in the fourth quarter of 2017, the Company determined the Coatings & Performance Monomers reporting unit was impaired. Throughout 2017, the Coatings & Performance Monomers reporting unit did not consistently meet expected financial performance targets, primarily due to increasing commoditization in coatings markets and competition, as well as customer consolidation in end markets which reduced growth opportunities. As a result, the Coatings & Performance Monomers reporting unit lowered future revenue and profitability expectations. The fair value of the Coatings & Performance Monomers reporting unit was determined using a discounted cash flow methodology that reflected reductions in projected revenue growth rates, primarily driven by modified sales volume and pricing assumptions, as well as revised expectations for future growth rates. These discounted cash flows did not support the carrying value of the Coatings & Performance Monomers reporting unit. As a result, the Company recorded a goodwill impairment charge for the Coatings & Performance Monomers reporting unit of $1,491 million in the fourth quarter of 2017, included in “Restructuring, goodwill impairment and asset related charges - net” in the consolidated statements of income and related to the Performance Materials & Coatings segment. The Coatings & Performance Monomers reporting unit carried $1,071 million of goodwill at December 31, 2017. No other goodwill impairments were identified as a result of the 2017 testing. Other Intangible Assets The following table provides information regarding the Company’s other intangible assets: Other Intangible Assets at Dec 31 2018 2017 In millions Gross Carrying Amount Accum Amort Net Gross Carrying Amount Accum Amort Net Intangible assets with finite lives: Developed technology $ 2,634 $ (1,252 ) $ 1,382 $ 2,630 $ (1,021 ) $ 1,609 Software 1,404 (805 ) 599 1,323 (727 ) 596 Trademarks/tradenames 352 (329 ) 23 366 (284 ) 82 Customer-related 3,211 (993 ) 2,218 3,247 (810 ) 2,437 Other — — — 2 — 2 Total other intangible assets, finite lives $ 7,601 $ (3,379 ) $ 4,222 $ 7,568 $ (2,842 ) $ 4,726 In-process research and development ("IPR&D") 3 — 3 3 — 3 Total other intangible assets $ 7,604 $ (3,379 ) $ 4,225 $ 7,571 $ (2,842 ) $ 4,729 Intangible assets assumed from the receipt of ECP are presented in the table below. See Note 4 for additional information. ECP Intangible Assets at Aug 31, 2017 Gross Carrying Amount Weighted-average Amort. Period (in years) In millions Intangible assets with finite lives: Developed technology $ 366 14 Trademarks/tradenames 20 7 Customer-related 1,098 15 Total $ 1,484 15 The following table provides information regarding amortization expense from continuing operations related to intangible assets: Amortization Expense from Continuing Operations 2018 2017 2016 In millions Other intangible assets, excluding software $ 469 $ 400 $ 316 Software, included in “Cost of sales” from continuing operations $ 93 $ 82 $ 69 In the second quarter of 2016, the Company wrote-off $11 million of IPR&D as part of the 2016 restructuring charge. This charge was included in "Restructuring, goodwill impairment and asset related charges - net" in the consolidated statements of income and was related to Industrial Intermediates & Infrastructure segment. See Note 8 for additional information. Total estimated amortization expense from continuing operations for the next five fiscal years is as follows: Estimated Amortization Expense from Continuing Operations for Next Five Years In millions 2019 $ 518 2020 $ 492 2021 $ 470 2022 $ 413 2023 $ 392 |
TRANSFERS OF FINANCIAL ASSETS
TRANSFERS OF FINANCIAL ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Transfers and Servicing [Abstract] | |
TRANSFERS OF FINANCIAL ASSETS | TRANSFERS OF FINANCIAL ASSETS The Company has historically sold trade accounts receivable of select North American entities and qualifying trade accounts receivable of select European entities on a revolving basis to certain multi-seller commercial paper conduit entities ("conduits"). The proceeds received are comprised of cash and interests in specified assets of the conduits (the receivables sold by the Company) that entitle the Company to the residual cash flows of such specified assets in the conduits after the commercial paper has been repaid. Neither the conduits nor the investors in those entities have recourse to other assets of the Company in the event of nonpayment by the debtors. In the fourth quarter of 2017, the Company suspended further sales of trade accounts receivable through these facilities and began reducing outstanding balances through collections of trade accounts receivable previously sold to such conduits. In September and October 2018, the North American and European facilities, respectively, were amended and the terms of the agreements changed from off-balance sheet arrangements to secured borrowing arrangements. See Note 17 for additional information on the secured borrowing arrangements. For the year ended December 31, 2018 , the Company recognized a loss of $7 million on the sale of these receivables ( $25 million loss for the year ended December 31, 2017 and $20 million loss for the year ended December 31, 2016 ), which is included in “Interest expense and amortization of debt discount” in the consolidated statements of income. The following table summarizes the carrying value of interests held, which represents the Company's maximum exposure to loss related to the receivables sold, and the percentage of anticipated credit losses related to the trade accounts receivable sold. Also provided is the sensitivity of the fair value of the interests held to hypothetical adverse changes in the anticipated credit losses; amounts shown below are the corresponding hypothetical decreases in the carrying value of interests. Interests Held at Dec 31 In millions 2018 2017 Carrying value of interests held 1 $ — $ 677 Percentage of anticipated credit losses — % 2.64 % Impact to carrying value - 10% adverse change $ — $ — Impact to carrying value - 20% adverse change $ — $ 1 1. Included in "Accounts and notes receivable - other" in the consolidated balance sheets. Credit losses, net of any recoveries, on receivables sold were insignificant for the years ended December 31, 2018 , 2017 and 2016. Following is an analysis of certain cash flows between the Company and the conduits: Cash Proceeds In millions 2018 2017 2016 Sale of receivables $ — $ 1 $ 1 Collections reinvested in revolving receivables $ — $ 21,293 $ 21,652 Interests in conduits 1 $ 657 $ 9,462 $ 8,551 1. Presented in "Investing Activities" in the consolidated statements of cash flows in accordance with ASU 2016-15. See Note 2 for additional information. In connection with the review and implementation of ASU 2016-15, the Company also changed the prior year value of “Interests in conduits” due to additional interpretive guidance of the required method for calculating the cash received from beneficial interests in the conduits, including additional guidance from the SEC's Office of the Chief Accountant issued in the third quarter of 2018 that indicated an entity must evaluate daily transaction activity to calculate the value of cash received from beneficial interests in conduits. Following is additional information related to the sale of receivables under these facilities: Trade Accounts Receivable Sold at Dec 31 In millions 2018 2017 Delinquencies on sold receivables still outstanding $ — $ 82 Trade accounts receivable outstanding and derecognized $ — $ 612 In 2017 , the Company repurchased $5 million of previously sold receivables. |
NOTES PAYABLE, LONG-TERM DEBT A
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES | NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES Notes Payable at Dec 31 In millions 2018 2017 Commercial paper $ 10 $ 231 Notes payable to banks and other lenders 288 250 Total notes payable $ 298 $ 481 Year-end average interest rates 8.28 % 4.37 % Long-Term Debt at Dec 31 2018 Average Rate 2018 2017 Average Rate 2017 In millions Promissory notes and debentures: Final maturity 2018 — % $ — 5.78 % $ 339 Final maturity 2019 9.80 % 7 8.55 % 2,122 Final maturity 2020 4.46 % 1,547 4.46 % 1,547 Final maturity 2021 4.71 % 1,424 4.71 % 1,424 Final maturity 2022 3.50 % 1,373 3.50 % 1,373 Final maturity 2023 7.64 % 325 7.64 % 325 Final maturity 2024 and thereafter 5.73 % 8,859 5.92 % 6,857 Other facilities: U.S. dollar loans, various rates and maturities 3.59 % 4,533 2.44 % 4,564 Foreign currency loans, various rates and maturities 3.20 % 708 2.98 % 806 Medium-term notes, varying maturities through 2025 3.26 % 778 3.20 % 873 Tax-exempt bonds — % — 5.66 % 343 Capital lease obligations 371 277 Unamortized debt discount and issuance costs (334 ) (345 ) Long-term debt due within one year 1 (338 ) (748 ) Long-term debt $ 19,253 $ 19,757 1. Presented net of current portion of unamortized debt issuance costs. Maturities of Long-Term Debt for Next Five Years at Dec 31, 2018 1 In millions 2019 $ 338 2020 $ 1,832 2021 $ 6,247 2022 $ 1,509 2023 $ 480 1. Assumes the option to extend a term loan facility related to the Dow Silicones ownership restructure will be exercised. 2018 Activity In 2018, the Company redeemed $333 million of 5.70 percent notes at maturity and an aggregate principal amount of $91 million of International Notes ("InterNotes") at maturity. In addition, approximately $138 million of long-term debt was repaid by consolidated variable interest entities. The Company also called an aggregate principal amount of $343 million tax-exempt bonds of various interest rates and maturities in 2029, 2033 and 2038. As a result of these redemptions, the Company recognized a pretax loss of $6 million on the early extinguishment of debt, included in “Sundry income (expense) - net” in the consolidated statements of income and related to Corporate. In November 2018, the Company issued $2.0 billion of senior unsecured notes in an offering under Rule 144A of the Securities Act of 1933. The offering included $900 million aggregate principal amount of 5.55 percent notes due 2048; $600 million aggregate principal amount of 4.80 percent notes due 2028; and $500 million aggregate principal amount of 4.55 percent notes due 2025. In December 2018, the Company tendered and redeemed $2.1 billion of 8.55 percent notes issued by the Company with maturity in 2019. As a result, the Company recognized a pretax loss of $48 million on the early extinguishment of debt, included in "Sundry income (expense) - net" in the consolidated statements of income and related to Corporate. 2017 Activity In 2017, the Company redeemed $436 million of 6.00 percent notes that matured on September 15, 2017, and $32 million aggregate principal amount of InterNotes at maturity. In addition, approximately $119 million of long-term debt was repaid by consolidated variable interest entities. 2016 Activity In 2016, the Company redeemed $349 million of 2.50 percent notes that matured on February 15, 2016, and $52 million aggregate principal amount of InterNotes at maturity. In addition, approximately $128 million of long-term debt (net of $28 million of additional borrowings) was repaid by consolidated variable interest entities. As part of the Dow Silicones ownership restructure, the fair value of debt assumed by the Company was $4,672 million and is reflected in the long-term debt table above. Available Credit Facilities The following table summarizes the Company's credit facilities: Committed and Available Credit Facilities at Dec 31, 2018 In millions Effective Date Committed Credit Credit Available Maturity Date Interest Five Year Competitive Advance and Revolving Credit Facility October 2018 $ 5,000 $ 5,000 October 2023 Floating rate Bilateral Revolving Credit Facility August 2015 100 100 March 2019 Floating rate Bilateral Revolving Credit Facility August 2015 100 100 October 2019 Floating rate Bilateral Revolving Credit Facility August 2015 100 100 March 2020 Floating rate Bilateral Revolving Credit Facility August 2015 280 280 March 2020 Floating rate Bilateral Revolving Credit Facility August 2015 100 100 March 2020 Floating rate Bilateral Revolving Credit Facility August 2015 200 200 March 2020 Floating rate Term Loan Facility 1 February 2016 4,500 — December 2021 Floating rate Bilateral Revolving Credit Facility May 2016 200 200 May 2020 Floating rate Bilateral Revolving Credit Facility July 2016 200 200 July 2020 Floating rate Bilateral Revolving Credit Facility August 2016 100 100 August 2020 Floating rate North American Securitization Facility September 2018 800 800 September 2019 Floating rate European Securitization Facility 2 October 2018 457 457 October 2020 Floating rate Total Committed and Available Credit Facilities $ 12,137 $ 7,637 1. Assumes the option to extend the Dow Silicones term loan facility will be exercised. 2. Equivalent to Euro 400 million . Term Loan Facility In connection with the ownership restructure of Dow Silicones on May 31, 2016, Dow Silicones incurred $4.5 billion of indebtedness under a certain third party credit agreement ("Term Loan Facility"). The Company subsequently guaranteed the obligations of Dow Silicones under the Term Loan Facility and, as a result, the covenants and events of default applicable to the Term Loan Facility are substantially similar to the covenants and events of default set forth in the Company's Five Year Competitive Advance and Revolving Credit Facility Agreement. In the second quarter of 2018, Dow Silicones exercised the 19-month extension option making amounts borrowed under the Term Loan Facility repayable on December 30, 2019. In addition, Dow Silicones amended the Term Loan Facility to include an additional 2-year extension option, at Dow Silicones' election, upon satisfaction of certain customary conditions precedent. Dow Silicones intends to exercise the 2-year extension option on the Term Loan Facility. Secured Borrowings In September 2018, the Company renewed its North American accounts receivable securitization facility for a one year term and amended the terms of the agreement from an off-balance sheet arrangement to a secured borrowing arrangement, with a borrowing capacity up to $800 million . Under the structure of the amended agreement, the Company will use select trade accounts receivable to collateralize the credit facility with certain lenders. At December 31, 2018 , the facility had not been drawn upon. In October 2018, the Company renewed its European accounts receivable securitization facility for a two year term and amended the terms of the agreement from an off-balance sheet arrangement to a secured borrowing arrangement, with a borrowing capacity up to Euro 400 million . Under the structure of the amended agreement, the Company will use select trade accounts receivable to collateralize the credit facility with certain lenders. At December 31, 2018 , the facility had not been drawn upon. Letters of Credit The Company utilizes letters of credit to support commitments made in the ordinary course of business. While the terms and amounts of letters of credit change, the Company typically has approximately $400 million of outstanding letters of credit at any given time. Debt Covenants and Default Provisions The Company’s outstanding long-term debt has been issued primarily under indentures which contain, among other provisions, certain customary restrictive covenants with which the Company must comply while the underlying notes are outstanding. Failure of the Company to comply with any of its covenants, could result in a default under the applicable indenture and allow the note holders to accelerate the due date of the outstanding principal and accrued interest on the underlying notes. The Company's indenture covenants include obligations to not allow liens on principal U.S. manufacturing facilities, enter into sale and lease-back transactions with respect to principal U.S. manufacturing facilities, merge or consolidate with any other corporation, or sell, lease or convey, directly or indirectly, all or substantially all of the Company’s assets. The outstanding debt also contains customary default provisions. The Company remains in compliance with these covenants. The Company’s primary, private credit agreements also contain certain customary restrictive covenant and default provisions in addition to the covenants set forth above with respect to the Company’s debt. Significant other restrictive covenants and default provisions related to these agreements include: (a) the obligation to maintain the ratio of the Company’s consolidated indebtedness to consolidated capitalization at no greater than 0.65 to 1.00 at any time the aggregate outstanding amount of loans under the Five Year Competitive Advance and Revolving Credit Facility Agreement dated October 30, 2018, equals or exceeds $500 million , (b) a default if the Company or an applicable subsidiary fails to make any payment, including principal, premium or interest, under the applicable agreement on other indebtedness of, or guaranteed by, the Company or such applicable subsidiary in an aggregate amount of $100 million or more when due, or any other default or other event under the applicable agreement with respect to such indebtedness occurs which permits or results in the acceleration of $400 million or more in the aggregate of principal, and (c) a default if the Company or any applicable subsidiary fails to discharge or stay within 60 days after the entry of a final judgment against the Company or such applicable subsidiary of more than $400 million . Failure of the Company to comply with any of the covenants or default provisions could result in a default under the applicable credit agreement which would allow the lenders to not fund future loan requests and to accelerate the due date of the outstanding principal and accrued interest on any outstanding indebtedness. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES Environmental Matters Introduction 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 December 31, 2018 , the Company had accrued obligations of $810 million for probable environmental remediation and restoration costs, including $156 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 current estimate of the costs for remediation and restoration with respect to environmental matters for which the Company 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 Company’s results of operations, financial condition and cash flows. It is the opinion of the Company’s management, however, that the possibility is remote that costs in excess of the range disclosed will have a material impact on the Company’s results of operations, financial condition or cash flows. Inherent uncertainties exist in these estimates primarily due to unknown conditions, changing governmental regulations and legal standards regarding liability, and emerging remediation technologies for handling site remediation and restoration. At December 31, 2017 , the Company had accrued obligations of $865 million for probable environmental remediation and restoration costs, including $152 million for the remediation of Superfund sites. In the fourth quarter of 2016, the Company recorded a pretax charge of $295 million for environmental remediation at a number of historical locations, including the Midland, Michigan, manufacturing site/off-site matters and the Wood-Ridge, New Jersey, sites, primarily resulting from the culmination of negotiations with regulators and/or final agency approval. These charges were included in "Cost of sales" in the consolidated statements of income. The environmental remediation charges by segment were as follows: $2 million in the Packaging & Specialty Plastics segment, $1 million in the Industrial Intermediates & Infrastructure segment and $292 million in the Corporate segment. The following table summarizes the activity in the Company's accrued obligations for environmental matters for the years ended December 31, 2018 and 2017 : Accrued Obligations for Environmental Matters 2018 2017 In millions Balance at Jan 1 $ 865 $ 904 Accrual adjustment 176 163 Payments against reserve (208 ) (219 ) Foreign currency impact (23 ) 17 Balance at Dec 31 $ 810 $ 865 The amounts charged to income on a pretax basis related to environmental remediation totaled $176 million in 2018 , $163 million in 2017 and $503 million in 2016 . Capital expenditures for environmental protection were $55 million in 2018 , $57 million in 2017 and $57 million in 2016 . Midland Off-Site Environmental Matters On June 12, 2003, the Michigan Department of Environmental Quality ("MDEQ") issued a Hazardous Waste Operating License (the "License") to the Company’s Midland, Michigan, manufacturing site (the “Midland site”), which was renewed and replaced by the MDEQ on September 25, 2015, and included provisions requiring the Company to conduct an investigation to determine the nature and extent of off-site contamination in the City of Midland soils, the Tittabawassee River and Saginaw River sediment and floodplain soils, and the Saginaw Bay, and, if necessary, undertake remedial action. In 2016, final regulatory approval was received from the MDEQ for the City of Midland and the Company is continuing the long term monitoring requirements of the Remedial Action Plan. Tittabawassee and Saginaw Rivers, Saginaw Bay The Company, the U.S. Environmental Protection Agency (“EPA”) and the State of Michigan ("State") entered into an administrative order on consent (“AOC”), effective January 21, 2010, that requires the Company to conduct a remedial investigation, a feasibility study and a remedial design for the Tittabawassee River, the Saginaw River and the Saginaw Bay, and pay the oversight costs of the EPA and the State under the authority of the Comprehensive Environmental Response, Compensation, and Liability Act. These actions, to be conducted under the lead oversight of the EPA, will build upon the investigative work completed under the State Resource Conservation Recovery Act program from 2005 through 2009. The Tittabawassee River, beginning at the Midland Site and extending down to the first six miles of the Saginaw River, are designated as the first Operable Unit for purposes of conducting the remedial investigation, feasibility study and remedial design work. This work will be performed in a largely upriver to downriver sequence for eight geographic segments of the Tittabawassee and upper Saginaw Rivers. In the first quarter of 2012, the EPA requested the Company address the Tittabawassee River floodplain ("Floodplain") as an additional segment. In January 2015, the Company and the EPA entered into an order to address remediation of the Floodplain. The remedial work is expected to take place over the next three years. The remainder of the Saginaw River and the Saginaw Bay are designated as a second Operable Unit and the work associated with that unit may also be geographically segmented. The AOC does not obligate the Company to perform removal or remedial action; that action can only be required by a separate order. The Company and the EPA have been negotiating orders separate from the AOC that obligate the Company to perform remedial actions under the scope of work of the AOC. The Company and the EPA have entered into four separate orders to perform limited remedial actions in five of the eight geographic segments in the first Operable Unit, and the order to address the Floodplain. Alternative Dispute Resolution Process The Company, the EPA, the U.S. Department of Justice ("DOJ"), and the natural resource damage trustees (which include the Michigan Office of the Attorney General, the MDEQ, the U.S. Fish and Wildlife Service, the U.S. Bureau of Indian Affairs and the Saginaw-Chippewa tribe) have been engaged in negotiations to seek to resolve potential governmental claims against the Company related to historical off-site contamination associated with the City of Midland, the Tittabawassee and Saginaw Rivers and the Saginaw Bay. The Company and the governmental parties started meeting in the fall of 2005 and entered into a Confidentiality Agreement in December 2005. The Company continues to conduct negotiations under the Federal Alternative Dispute Resolution Act with all of the governmental parties, except the EPA which withdrew from the alternative dispute resolution process on September 12, 2007. On September 28, 2007, the Company and the natural resource damage trustees entered into a Funding and Participation Agreement that addressed the Company’s payment of past costs incurred by the natural resource damage trustees, payment of the costs of a trustee coordinator and a process to review additional cooperative studies that the Company might agree to fund or conduct with the natural resource damage trustees. On March 18, 2008, the Company and the natural resource damage trustees entered into a Memorandum of Understanding ("MOU") to provide a mechanism for the Company to fund cooperative studies related to the assessment of natural resource damages. This MOU was amended and funding of cooperative studies was extended until March 2014. All cooperative studies have been completed. On April 7, 2008, the natural resource damage trustees released their “Natural Resource Damage Assessment Plan for the Tittabawassee River System Assessment Area.” At December 31, 2018 , the accrual for these off-site matters was $95 million (included in the total accrued obligation of $810 million ). At December 31, 2017 , the Company had an accrual for these off-site matters of $83 million (included in the total accrued obligation of $865 million ). Environmental Matters Summary It is the opinion of the Company’s management that the possibility is remote that costs in excess of those disclosed will have a material impact on the Company’s results of operations, financial condition or cash flows. Litigation Asbestos-Related Matters of Union Carbide Corporation Introduction Union Carbide 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 Union Carbide sold in the past, alleged exposure to asbestos-containing products located on Union Carbide’s premises, and Union Carbide’s responsibility for asbestos suits filed against a former Union Carbide 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 Union Carbide’s products. Union Carbide expects more asbestos-related suits to be filed against Union Carbide and Amchem in the future, and will aggressively defend or reasonably resolve, as appropriate, both pending and future claims. Estimating the Asbestos-Related Liability Based on a study completed in January 2003 by Ankura Consulting Group, LLC ("Ankura"), Union Carbide increased its December 31, 2002 asbestos-related liability for pending and future claims for a 15-year period ending in 2017 to $2.2 billion , excluding future defense and processing costs. Since then, Union Carbide has compared current asbestos claim and resolution activity to the results of the most recent Ankura study at each balance sheet date to determine whether the accrual continues to be appropriate. In addition, Union Carbide has requested Ankura to review Union Carbide’s historical asbestos claim and resolution activity each year since 2004 to determine the appropriateness of updating the most recent Ankura study. In October 2016, Union Carbide requested Ankura to review its historical asbestos claim and resolution activity and determine the appropriateness of updating its December 2014 study. In response to the request, Ankura reviewed and analyzed asbestos-related claim and resolution data through September 30, 2016. The resulting study, completed by Ankura in December 2016, provided estimates for the undiscounted cost of disposing of pending and future claims against Union Carbide and Amchem, excluding future defense and processing costs, for both a 15-year period and through the terminal year of 2049. Based on the study completed in December 2016 by Ankura, and Union Carbide's own review, it was determined that an adjustment to the accrual was necessary . Union Carbide determined that using the estimate through the terminal year of 2049 was more appropriate due to increasing knowledge and data about the costs to resolve claims and diminished volatility in filing rates. Using the range in the Ankura December 2016 study, which was estimated to be betwe en $502 million and $565 million f or the undiscounted cost of disposing of pending and future claims, Union Carbide increased its asbestos-related liability for pending and future claims through the terminal year of 2049 by $104 million (related to the Corporate segment), inc luded in "Asbestos-related charge" in the consolidated statements of income. In September 2014, Union Carbide began to implement a strategy designed to reduce and to ultimately stabilize and forecast defense costs associated with asbestos-related matters. The strategy included a number of important changes including: invoicing protocols including capturing costs by plaintiff; review of existing counsel roles, work processes and workflow; and the utilization of enterprise legal management software, which enabled claim-specific tracking of asbestos-related defense and processing costs. Union Carbide reviewed the information generated from this new strategy and determined that it now had the ability to reasonably estimate asbestos-related defense and processing costs for the same periods that it estimates its asbestos-related liability for pending and future claims. Union Carbide believes that including estimates of the liability for asbestos-related defense and processing costs provides a more complete assessment and measure of the liability associated with resolving asbestos-related matters, which Union Carbide and the Company believe is preferable in these circumstances. In October 2016, in addition to the study for asbestos claim and resolution activity, Union Carbide requested Ankura to review asbestos-related defense and processing costs and provide an estimate of defense and processing costs associated with resolving pending and future asbestos-related claims facing Union Carbide and Amchem for the same periods of time that Union Carbide uses for estimating resolution costs. In December 2016, Ankura conducted the study and provided Union Carbide with an estimate of future defense and processing costs for both a 15-year period and through the terminal year of 2049. The resulting study estimated asbestos-related defense and processing costs for pending and future asbestos claims to be between $1,009 million and $1,081 million through the terminal year of 2049. In the fourth quarter of 2016, Union Carbide and the Company elected to change their method of accounting for asbestos-related defense and processing costs from expensing as incurred to estimating and accruing a liability. This change is believed to be preferable as asbestos-related defense and processing costs represent expenditures related to legacy activities that do not contribute to current or future revenue generating activities of the Company. The change is also reflective of the manner in which Union Carbide manages its asbestos-related exposure, including careful monitoring of the correlation between defense spending and resolution costs. Together, these two sources of cost more accurately represent the “total cost” of resolving asbestos-related claims now and in the future. This accounting policy change was reflected as a change in accounting estimate effected by a change in accounting principle. As a result of this accounting policy change and based on the December 2016 Ankura study of asbestos-related defense and processing costs and Union Carbide's own review of the data, Union Carbide recorded a pretax charge for asbestos-related defense and processing costs of $1,009 million (related to the Corporate segment) in the fourth quarter of 2016, included in “Asbestos-related charge” in the consolidated statements of income. In October 2017, Union Carbide requested Ankura to review its historical asbestos claim and resolution activity (including asbestos-related defense and processing costs) and determine the appropriateness of updating its December 2016 study. In response to that request, Ankura reviewed and analyzed data through September 30, 2017. In December 2017, Ankura stated that an update of its December 2016 study would not provide a more likely estimate of future events than the estimate reflected in the study and, therefore, the estimate in that study remained applicable. Based on Union Carbide's own review of the asbestos claim and resolution activity (including asbestos-related defense and processing costs) and Ankura's response, Union Carbide determined that no change to the accrual was required. At December 31, 2017, the asbestos-related liability for pending and future claims against Union Carbide and Amchem, including future asbestos-related defense and processing costs, was $1,369 million , and approximately 16 percent of the recorded liability related to pending claims and approximately 84 percent related to future claims. In October 2018, Union Carbide requested Ankura to review its historical asbestos claim and resolution activity (including asbestos-related defense and processing costs) and determine the appropriateness of updating its December 2016 study. In response to that request, Ankura reviewed and analyzed data through September 30, 2018. The resulting study, completed by Ankura in December 2018, provided estimates for the undiscounted cost of disposing of pending and future claims against Union Carbide and Amchem, including future defense and processing costs, through the terminal year of 2049. Based on the study completed in December 2018 by Ankura, and Union Carbide's own review, it was determined that no adjustment to the accrual was required. At December 31, 2018, Union Carbide's asbestos-related liability for pending and future claims and defense and processing costs was $1,260 million , and approximately 16 percent of the recorded liability related to pending claims and approximately 84 percent related to future claims. Summary The Company's management believes the amounts recorded by Union Carbide for the asbestos-related liability (including defense and processing costs) reflect reasonable and probable estimates of the liability based upon current, known facts. However, future events, such as the number of new claims to be filed and/or received each year, 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 Union Carbide to be higher or lower than those projected or those recorded. Any such events could result in an increase or decrease in the recorded liability. Because of the uncertainties described above, Union Carbide cannot estimate the full range of the cost of resolving pending and future asbestos-related claims facing Union Carbide and Amchem. As a result, it is reasonably possible that an additional cost of disposing of Union Carbide's asbestos-related claims, including future defense and processing costs, could have a material impact on the Company's results of operations and cash flows for a particular period and on the consolidated financial position. Urethane Matters Class Action Lawsuit On February 16, 2006, the Company, among others, received a subpoena from the DOJ as part of a previously announced antitrust investigation of manufacturers of polyurethane chemicals, including methylene diphenyl diisocyanate, toluene diisocyanate, polyether polyols and system house products. The Company cooperated with the DOJ and, following an extensive investigation, on December 10, 2007, the Company received notice from the DOJ that it had closed its investigation of potential antitrust violations involving these products without indictments or pleas. In 2005, the Company, among others, was named as a defendant in multiple civil class action lawsuits alleging a conspiracy to fix the price of various urethane chemical products, namely the products that were the subject of the above described DOJ antitrust investigation. On July 29, 2008, a Kansas City federal district court (the "district court") certified a class of purchasers of the products for the six-year period from 1999 through 2004 ("plaintiff class"). In January 2013, the class action lawsuit went to trial with the Company as the sole remaining defendant, the other defendants having previously settled. On February 20, 2013, the federal jury returned a damages verdict of approximately $400 million against the Company, which ultimately was trebled under applicable antitrust laws, less offsets from other settling defendants, resulting in a judgment entered in July 2013 in the amount of $1.06 billion . The Company appealed this judgment to the U.S. Tenth Circuit Court of Appeals ("Court of Appeals"), and on September 29, 2014, the Court of Appeals issued an opinion affirming the district court judgment. On March 9, 2015, the Company filed a petition for writ of certiorari ("Writ Petition") with the United States Supreme Court, seeking judicial review and requesting that it correct fundamental errors in the Court of Appeals decision. In the first quarter of 2016, the Company changed its risk assessment on this matter as a result of growing political uncertainties due to events within the Supreme Court, including Justice Scalia's death, and the increased likelihood for unfavorable outcomes for businesses involved in class action lawsuits. On February 26, 2016, the Company announced a proposed settlement under which the Company would pay the plaintiff class $835 million , which included damages, class attorney fees and post-judgment interest. On July 29, 2016, the U.S. District Court for the District of Kansas granted final approval of the settlement. The settlement resolved the $1.06 billion judgment and any subsequent claim for attorneys' fees, costs and post-judgment interest against the Company. As a result, in the first quarter of 2016, the Company recorded a loss of $835 million , included in "Sundry income (expense) - net" in the consolidated statements of income and related to the Industrial Intermediates & Infrastructure segment. The Company continues to believe that it was not part of any conspiracy and the judgment was fundamentally flawed as a matter of class action law. The case is now concluded. Opt-Out Cases Shortly after the July 2008 class certification ruling, a series of "opt-out" cases were filed by a number of large volume purchasers who elected not to be class members in the district court case. These opt-out cases were substantively identical to the class action lawsuit, but expanded the period of time to include 1994 through 1998. A consolidated jury trial of the opt-out cases began on March 8, 2016. Prior to a jury verdict, on April 5, 2016, the Company entered into a binding settlement for the opt-out cases under which the Company would pay the named plaintiffs $400 million , inclusive of damages and attorney fees. Payment of this settlement occurred on May 4, 2016. The Company changed its risk assessment on this matter as a result of the class settlement and the uncertainty of a jury trial outcome along with the automatic trebling of an adverse verdict. As a result, the Company recorded a loss of $400 million in the first quarter of 2016, included in "Sundry income (expense) - net" in the consolidated statements of income and related to the Industrial Intermediates & Infrastructure segment. As with the class action case, the Company continues to deny allegations of price fixing and maintains that it was not part of any conspiracy. The case is now concluded. Rocky Flats Matter The Company and Rockwell International Corporation ("Rockwell") (collectively, the "defendants") were defendants in a class action lawsuit filed in 1990 on behalf of property owners ("plaintiffs") in Rocky Flats, Colorado, who asserted claims for nuisance and trespass based on alleged property damage caused by plutonium releases from a nuclear weapons facility owned by the U.S. Department of Energy ("DOE") (the "facility"). The Company and Rockwell were both DOE contractors that operated the facility ‑ the Company from 1952 to 1975 and Rockwell from 1975 to 1989. The facility was permanently shut down in 1989. In 1993, the United States District Court for the District of Colorado ("District Court") certified the class of property owners. The plaintiffs tried their case as a public liability action under the Price Anderson Act ("PAA"). In 2005, the jury returned a damages verdict of $926 million . The Company and Rockwell appealed the jury award to the U.S. Tenth Circuit Court of Appeals ("Court of Appeals") which concluded the PAA had its own injury requirements, on which the jury had not been instructed, and also vacated the District Court's class certification ruling, reversed and remanded the case, and vacated the District Court's judgment. The plaintiffs argued on remand to the District Court that they were entitled to reinstate the judgment as a state law nuisance claim, independent of the PAA. The District Court rejected that argument and entered judgment in favor of the defendants. The plaintiffs appealed to the Court of Appeals, which reversed the District Court's ruling, holding that the PAA did not preempt the plaintiffs' nuisance claim under Colorado law and that the plaintiffs could seek reinstatement of the prior nuisance verdict under Colorado law. The Company and Rockwell continued to litigate this matter in the District Court and in the United States Supreme Court following the appellate court decision. On May 18, 2016, the Company, Rockwell and the plaintiffs entered into a settlement agreement for $375 million , of which $131 million was paid by the Company. The DOE authorized the settlement pursuant to the PAA and the nuclear hazards indemnity provisions contained in the Company's and Rockwell's contracts. The District Court granted preliminary approval to the class settlement on August 5, 2016. On April 28, 2017, the District Court conducted a fairness hearing and granted final judgment approving the class settlement and dismissed class claims against the defendants ("final judgment order"). On December 13, 2016, the United States Civil Board of Contract Appeals unanimously ordered the United States government to pay the amounts stipulated in the settlement agreement. On January 17, 2017, the Company received a full indemnity payment of $131 million from the United States government for it's share of the class settlement. On January 26, 2017, the Company placed $130 million in an escrow account for the settlement payment owed to the plaintiffs. The funds were subsequently released from escrow as a result of the final judgment order. The litigation is now concluded. Dow Silicones Chapter 11 Related Matters Introduction In 1995, Dow Silicones, then a 50:50 joint venture between the Company and Corning, voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code in order to resolve Dow Silicones’ breast implant liabilities and related matters (the “Chapter 11 Proceeding”). Dow Silicones emerged from the Chapter 11 Proceeding on June 1, 2004 (the “Effective Date”) and is implementing the Joint Plan of Reorganization (the “Plan”). The Plan provides funding for the resolution of breast implant and other product liability litigation covered by the Chapter 11 Proceeding and provides a process for the satisfaction of commercial creditor claims in the Chapter 11 Proceeding. As of June 1, 2016, Dow Silicones is a wholly owned subsidiary of the Company. Breast Implant and Other Product Liability Claims Under the Plan, a product liability settlement program administered by an independent claims office (the “Settlement Facility”) was created to resolve breast implant and other product liability claims. Product liability claimants rejecting the settlement program in favor of pursuing litigation must bring suit against a litigation facility (the “Litigation Facility”). Under the Plan, total payments committed by Dow Silicones to resolving product liability claims are capped at a maximum $2,350 million net present value (“NPV”) determined as of the Effective Date using a discount rate of seven percent (approximately $3,876 million undiscounted at December 31, 2018 ). Of this amount, no more than $400 million NPV determined as of the Effective Date can be used to fund the Litigation Facility. December 31, 2018 , Dow Silicones and its insurers have made life-to-date payments of $1,762 million to the Settlement Facility and the Settlement Facility reported an unexpended balance of $118 million . On June 1, 2016, as part of the ownership restructure of Dow Silicones and in accordance with ASC 450 "Accounting for Contingencies," the Company recorded a liability of $290 million for breast implant and other product liability claims (“Implant Liability”), which reflected the estimated impact of the settlement of future claims primarily based on reported claim filing levels in the Revised Settlement Program (the “RSP”) and on the resolution of almost all cases pending against the Litigation Facility. The RSP was a program sponsored by certain other breast implant manufacturers in the context of multi-district, coordinated federal breast implant cases and was open from 1995 through 2010. The RSP was also a revised successor to an earlier settlement plan involving Dow Silicones (prior to its bankruptcy filing). While Dow Silicones withdrew from the RSP, many of the benefit categories and payment levels in Dow Silicones settlement program were drawn from the RSP. Based on the comparability in design and actual claim experience of both plans, management concluded that claim information from the RSP provides a reasonable basis to estimate future claim filing levels for the Settlement Facility. In the fourth quarter of 2016, with the assistance of a third party consultant ("consultant"), Dow Silicones updated its estimate of its Implant Liability to $263 million , primarily reflecting a decrease in Class 7 costs (claimants who have breast implants made by certain other manufacturers using primarily Dow Silicones silicone gel), a decrease resulting from the passage of time, decreased claim filing activity and administrative costs compared with the previous estimate, and an increase in investment income resulting from insurance proceeds. Based on the consultant's updated estimate and Dow Silicones own review of claim filing activity, Dow Silicones determined that an adjustment to the Implant Liability was required. Accordingly, Dow Silicones decreased its Implant Liability in the fourth quarter of 2016 by $16 million , which was included in "Sundry income (expense) - net" in the consolidated statements of income. At December 31, 2018 , the Implant Liability was $263 million , of which $111 million was included in “Accrued and other current liabilities” and $152 million was included in "Other noncurrent obligations" in the consolidated balance sheets. At December 31, 2017 , the Implant Liability was $263 million , which was included in "Other noncurrent obligations" in the consolidated balance sheets. Dow Silicones is not aware of circumstances that would change the factors used in estimating the Implant Liability and believes the recorded liability reflects the best estimate of the remaining funding obligations under the Plan; however, the estimate relies upon a number of significant assumptions, including: future claim filing levels in the Settlement Facility will be similar to those in the revised settlement program, which management uses to estimate future claim filing levels for the Settlement Facility; future acceptance rates, disease mix, and payment values will be materially consistent with historical experience; no material negative outcomes in future controversies or disputes over Plan interpretation will occur; and the Plan will not be modified. If actual outcomes related to any of these assumptions prove to be materially different, the future liability to fund the Plan may be materially different than the amount estimated. If Dow Silicones was ultimately required to fund the full liability up to the maximum capped value, the liability would be $2,114 million at December 31, 2018 . Commercial Creditor Issues The Plan provides that each of Dow Silicones commercial creditors (the “Commercial Creditors”) would receive in cash the sum of (a) an amount equal to the principal amount of their claims and (b) interest on such claims. The actual amount of interest that will ultimately be paid to these Commercial Creditors is uncertain due to pending litigation between Dow Silicones and the Commercial Creditors regarding the appropriate interest rates to be applied to outstanding obligations from the 1995 bankruptcy filing date through the Effective Date, as well as the presence of any recoverable fees, costs, and expenses. Upon the Plan becoming effective, Dow Silicones paid approximately $1,500 million to the Commercial Creditors, representing principal and an amount of interest that Dow Silicones considers undisputed. In 2006, the U.S. Court of Appeals for the Sixth Circuit concluded that there is a general presumption that contractually specified default interest should be paid by a s |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Merger with DuPont Effective with the Merger, each share of TDCC Common Stock (excluding any shares of TDCC Common Stock that were held in treasury, which were automatically canceled and retired for no consideration) was converted into the right to receive one fully paid and non-assessable share of DowDuPont Common Stock. As a result, in the third quarter of 2017, the Company recorded a reduction in "Treasury stock" of $935 million , a reduction in "Common stock" of $3,107 million and an increase in "Additional paid in capital" of $2,172 million in the consolidated balance sheets. Prior to the distribution, the Company had 100 shares of common stock issued and outstanding, par value $0.01 per share, owned solely by its parent, DowDuPont. See Note 3 for additional information. Cumulative Convertible Perpetual Preferred Stock, Series A Equity securities in the form of Cumulative Convertible Perpetual Preferred Stock, Series A (“preferred series A”) were issued on April 1, 2009 to Berkshire Hathaway Inc. in the amount of $3 billion ( 3 million shares) and the Kuwait Investment Authority in the amount of $1 billion ( 1 million shares). Shareholders of preferred series A could convert all or any portion of their shares, at their option, at any time, into shares of TDCC Common Stock at an initial conversion ratio of 24.2010 shares of common stock for each share of preferred series A. On or after the fifth anniversary of the issuance date, if the common stock price exceeded $53.72 per share for any 20 trading days in a consecutive 30-day window, the Company had the option, at any time, in whole or in part, to convert preferred series A into common stock at the then applicable conversion rate. On December 15, 2016, the trading price of TDCC's Common Stock closed at $58.35 , marking the 20th trading day in the previous 30 trading days that the common stock closed above $53.72 , triggering the right of the Company to exercise its conversion right. On December 16, 2016, the Company sent a Notice of Conversion at the Option of the Company (the "Notice") to all holders of its preferred series A. Pursuant to the Notice, on December 30, 2016 (the "Conversion Date") all 4 million outstanding shares of preferred series A (with a carrying value of $4 billion ) were converted into shares of TDCC Common Stock at a conversion ratio of 24.2010 shares of common stock for each share of preferred series A, resulting in the issuance of 96.8 million shares of common stock from treasury stock. The treasury stock issued was carried at an aggregate historical cost of $4,695 million , resulting in a reduction to "Additional paid-in capital" in the consolidated statements of equity of $695 million . From and after the Conversion Date, no shares of the preferred series A are issued or outstanding and all rights of the holders of the preferred series A have terminated. On January 6, 2017, the Company filed an amendment to its Restated Certificate of Incorporation by way of a certificate of elimination (the “Certificate of Elimination”) with the Secretary of State of Delaware which had the effect of: (a) eliminating the previously designated 4 million shares of the preferred series A, none of which were outstanding at the time of the filing; (b) upon such elimination, causing such preferred series A to resume the status of authorized and unissued shares of preferred stock, par value $1.00 per share, of the Company, without designation as to series; and (c) eliminating from the Company’s Restated Certificate of Incorporation all references to, and all matters set forth in, the certificates of designations for the preferred series A. The Company paid cumulative dividends on preferred series A at a rate of 8.5 percent per annum, or $85 million per quarter. The final dividend for the preferred series A was declared on December 15, 2016 and payable on the earlier of the Conversion Date (if applicable) or January 3, 2017, to shareholders of record at December 15, 2016. The dividend was paid in full on the Conversion Date. Common Stock Prior to the Merger, the Company issued common stock shares out of treasury stock or as new common stock shares for purchases under the Employee Stock Purchase Plan ("ESPP"), for options exercised and for the release of restricted stock units, performance deferred stock and restricted stock. The number of new common stock shares issued to employees and non-employee directors prior to the Merger was zero in 2017 ( zero in 2016 ). See Note 22 for additional information on changes to the Company equity awards in connection with the Merger. Retained Earnings There are no significant restrictions limiting the Company’s ability to pay dividends. Prior to the Merger, TDCC declared dividends of $1.38 per share in 2017 ( $1.84 per share in 2016). Effective with the Merger, TDCC no longer had publicly traded common stock. TDCC's common shares were owned solely by its parent company, DowDuPont, prior to the separation on April 1, 2019, and TDCC's Board of Directors determined whether or not there would be a dividend distribution to DowDuPont. See Note 26 for additional information. See Note 4 for information on the impact of the receipt of ECP, which was accounted for as a transfer between entities under common control. Undistributed earnings of nonconsolidated affiliates that are part of continuing operations included in retained earnings were $1,856 million at December 31, 2018 and $1,824 million at December 31, 2017 . Employee Stock Ownership Plan The Dow Employee Stock Ownership Plan (the “ESOP”) is an integral part of The Dow Chemical Company Employees’ Savings Plan (the “Plan”). A significant majority of full-time employees in the United States are eligible to participate in the Plan. The Company uses the ESOP to provide its matching contribution in the form of stock to Plan participants. Prior to the Merger, contributions were in the form of TDCC Common Stock. Effective with the Merger, shares of TDCC stock held by the ESOP were converted into shares of DowDuPont Common Stock at a ratio of 1:1. In connection with the acquisition of Rohm and Haas on April 1, 2009, the Rohm and Haas Employee Stock Ownership Plan (the "Rohm and Haas ESOP") was merged into the Plan, and the Company assumed the $78 million balance of debt at 9.8 percent interest with final maturity in 2020 that was used to finance share purchases by the Rohm and Haas ESOP in 1990. The outstanding balance of the debt was $10 million at December 31, 2018 and $17 million at December 31, 2017 . Dividends on unallocated shares held by the ESOP are used by the ESOP to make debt service payments and to purchase additional shares if dividends exceed the debt service payments. Dividends on allocated shares are used by the ESOP to make debt service payments to the extent needed; otherwise, they are paid to the Plan participants. Shares are released for allocation to participants based on the ratio of the current year’s debt service to the sum of the principal and interest payments over the life of the loan. The shares are allocated to Plan participants in accordance with the terms of the Plan. Compensation expense for allocated shares is recorded at the fair value of the shares on the date of allocation. Compensation expense reflected in income from continuing operations for ESOP shares was $144 million in 2018 , $200 million in 2017 and $161 million in 2016 . At December 31, 2018 , 15.3 million shares out of a total 21.8 million shares held by the ESOP had been allocated to participants’ accounts; 1.5 million shares were released but unallocated; and 5.0 million shares, at a fair value of $267 million , were considered unearned. Treasury Stock In 2013, the Board approved a share buy-back program. As a result of subsequent authorizations approved by the Board, the total authorized amount of the share repurchase program was $9.5 billion . Effective with the Merger, the share repurchase program was canceled. Over the duration of the program, a total of $8.1 billion was spent on the repurchase of TDCC Common Stock. The Company historically issued shares for purchases under the ESPP, for options exercised as well as for the release of restricted stock units, performance deferred stock and restricted stock out of treasury stock or as new common stock shares. The number of treasury shares issued to employees and non-employee directors under the Company’s stock-based compensation programs are summarized in the following table. See Note 22 for additional information on changes to the Company equity awards in connection with the Merger. Treasury Shares Issued Under Stock-Based Compensation Programs In thousands 2018 2017 1 2016 To employees and non-employee directors N/A 14,195 14,494 1. Reflects activity prior to the Merger. The following table provides a reconciliation of TDCC Common Stock activity, prior to the Merger, for the years ended December 31, 2017 and 2016: Shares of TDCC Common Stock Issued Held in Treasury In thousands Balance at Jan 1, 2016 1,242,795 125,853 Issued 1 — (14,494 ) Repurchased — 17,107 Preferred stock converted to common stock — (96,804 ) Balance at Dec 31, 2016 1,242,795 31,662 Issued 1 — (14,195 ) Converted to DowDuPont shares or canceled on Aug 31, 2017 2 (1,242,795 ) (17,467 ) Balance at Aug 31, 2017 — — 1. Shares issued to employees and non-employee directors under the Company's equity compensation plans. 2. Each share of TDCC Common Stock issued and outstanding immediately prior to the Merger was converted into one share of DowDuPont Common Stock; treasury shares were canceled as a result of the Merger. Accumulated Other Comprehensive Loss The following table summarizes the changes and after-tax balances of each component of AOCL for the years ended December 31, 2018 , 2017 and 2016 : Accumulated Other Comprehensive Loss Unrealized Gains (Losses) on Investments Cumulative Translation Adj Pension and Other Postretire Benefits Derivative Instruments Total Accum Other Comp Loss In millions 2016 Balance at Jan 1, 2016 $ 47 $ (1,737 ) $ (6,769 ) $ (208 ) $ (8,667 ) Other comprehensive income (loss) before reclassifications 32 (644 ) (1,354 ) 84 (1,882 ) Amounts reclassified from accumulated other comprehensive income (loss) (36 ) — 734 29 727 Net other comprehensive income (loss) $ (4 ) $ (644 ) $ (620 ) $ 113 $ (1,155 ) Balance at Dec 31, 2016 $ 43 $ (2,381 ) $ (7,389 ) $ (95 ) $ (9,822 ) 2017 Other comprehensive income (loss) before reclassifications 25 908 (23 ) 1 911 Amounts reclassified from accumulated other comprehensive income (loss) (71 ) (8 ) 414 (15 ) 320 Net other comprehensive income (loss) $ (46 ) $ 900 $ 391 $ (14 ) $ 1,231 Balance at Dec 31, 2017 $ (3 ) $ (1,481 ) $ (6,998 ) $ (109 ) $ (8,591 ) 2018 Balance at Jan 1, 2018 1 $ 17 $ (1,481 ) $ (6,998 ) $ (109 ) $ (8,571 ) Other comprehensive income (loss) before reclassifications (74 ) (221 ) (495 ) 4 (786 ) Amounts reclassified from accumulated other comprehensive income (loss) 7 (4 ) 455 71 529 Net other comprehensive income (loss) $ (67 ) $ (225 ) $ (40 ) $ 75 $ (257 ) Reclassification of stranded tax effects 2 $ (1 ) $ (107 ) $ (927 ) $ (22 ) $ (1,057 ) Balance at Dec 31, 2018 $ (51 ) $ (1,813 ) $ (7,965 ) $ (56 ) $ (9,885 ) 1. The beginning balance of "Unrealized gains (losses) on investments" was increased by $20 million to reflect the impact of adoption of ASU 2016-01. See Note 2 for additional information. 2. Amounts reclassified to retained earnings as a result of the adoption of ASU 2018-02. See Note 2 for additional information. The tax effects on the net activity related to each component of other comprehensive income (loss) for the years ended December 31, 2018 , 2017 and 2016 were as follows: Tax Benefit (Expense) 1 2018 2017 2016 In millions Unrealized gains (losses) on investments $ 17 $ 26 $ (2 ) Cumulative translation adjustments (6 ) (98 ) (171 ) Pension and other postretirement benefit plans (9 ) (213 ) 438 Derivative instruments (20 ) (3 ) (32 ) Tax benefit (expense) from income taxes related to other comprehensive income (loss) items $ (18 ) $ (288 ) $ 233 1. Prior year amounts have been updated to conform with the current year presentation. A summary of the reclassifications out of AOCL for the years ended December 31, 2018 , 2017 and 2016 is provided as follows: Reclassifications Out of Accumulated Other Comprehensive Loss In millions 2018 2017 2016 Consolidated Statements of Income Classification Unrealized (gains) losses on investments $ 9 $ (110 ) $ (56 ) See (1) below Tax (benefit) expense (2 ) 39 20 See (2) below After tax $ 7 $ (71 ) $ (36 ) Cumulative translation adjustments $ (4 ) $ (8 ) $ — See (3) below Pension and other postretirement benefit plans $ 594 $ 607 $ 913 See (4) below Tax benefit (139 ) (193 ) (179 ) See (2) below After tax $ 455 $ 414 $ 734 Derivative instruments $ 89 $ (13 ) $ 34 See (5) below Tax benefit (18 ) (2 ) (5 ) See (2) below After tax $ 71 $ (15 ) $ 29 Total reclassifications for the period, after tax $ 529 $ 320 $ 727 1. "Net sales" and "Sundry income (expense) - net." 2. "Provision (credit) for income taxes on continuing operations." 3. "Sundry income (expense) - net." 4. These AOCL components are included in the computation of net periodic benefit cost of the Company's defined benefit pension and other postretirement benefit plans. See Note 21 for additional information. In the year ended December 31, 2016, $360 million was included in “Sundry income (expense) - net” ( zero impact to "Provision (credit) for income taxes on continuing operations") related to the Dow Silicones ownership restructure. See Note 6 for additional information. 5. "Cost of sales," "Sundry income (expense) - net" and "Interest expense and amortization of debt discount." |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
NONCONTROLLING INTERESTS | NONCONTROLLING INTERESTS Ownership interests in the Company's subsidiaries held by parties other than the Company are presented separately from the Company's equity in the consolidated balance sheets as "Noncontrolling interests." The amount of consolidated net income attributable to the Company and the noncontrolling interests are both presented on the face of the consolidated statements of income. The following table summarizes the activity for equity attributable to noncontrolling interests for the years ended December 31, 2018 , 2017 and 2016 : Noncontrolling Interests In millions 2018 2017 2016 1 Balance at Jan 1 $ 1,186 $ 1,242 $ 809 Net income attributable to noncontrolling interests - continuing operations 102 102 53 Net income attributable to noncontrolling interests - discontinued operations 32 28 33 Distributions to noncontrolling interests 2 (145 ) (109 ) (123 ) Acquisition of noncontrolling interests 3 — — 473 Deconsolidation of noncontrolling interests 4 — (119 ) — Cumulative translation adjustments (39 ) 41 (4 ) Other 2 1 1 Balance at Dec 31 $ 1,138 $ 1,186 $ 1,242 1. The 2016 activity presented in the table excludes a $202 million cash payment for the purchase of a noncontrolling interest, as the noncontrolling interest was classified as "Accrued and other current liabilities" in the consolidated balance sheets. 2. Distributions to noncontrolling interests is net of $27 million in 2018 ( $20 million in 2017 and $53 million in 2016 ) in dividends paid to a joint venture, which were reclassified to "Equity in earnings of nonconsolidated affiliates" in the consolidated statements of income, and include amounts attributable to discontinued operations. 3. Assumed in the ownership restructure of Dow Silicones. See Note 6 for additional information. 4. On June 30, 2017, the Company sold its ownership interest in the SKC Haas Display Films group of companies. |
PENSION PLANS AND OTHER POSTRET
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS The Company and DuPont did not merge their defined benefit pension plans and other postretirement benefit plans as a result of the Merger. As a result of the Company’s separation from DowDuPont, the number of defined benefit pension plans administered by the Company decreased from 45 plans to 35 plans, with approximately $270 million of net unfunded pension liabilities transferring to DowDupont. Plans administered by other subsidiaries of DowDuPont that were transferred to the Company were not significant. There were no changes in the number of other postretirement benefit plans administered by the Company as a result of the separation. Defined Benefit Pension Plans The Company has both funded and unfunded defined benefit pension plans that cover employees in the United States and a number of other countries. The U.S. qualified plan covering the parent company is the largest plan. Benefits for employees hired before January 1, 2008, are based on length of service and the employee’s three highest consecutive years of compensation. Employees hired after January 1, 2008, earn benefits that are based on a set percentage of annual pay, plus interest. The Company's funding policy is to contribute to the plans when pension laws and/or economics either require or encourage funding. In 2018 , the Company contributed $1,651 million to its continuing operations pension plans ( $1,656 million , including contributions to plans of discontinued operations). Total contributions included a $1,100 million discretionary contribution to its principal U.S. pension plan in the third quarter of 2018. Total contributions in 2018 also included contributions to fund benefit payments for the Company's non-qualified pension plans. The Company expects to contribute approximately $255 million to its pension plans on a continuing operations basis in 2019 . The provisions of a U.S. non-qualified pension plan require the payment of plan obligations to certain participants upon a change in control of the Company, which occurred at the time of the Merger. Certain participants could elect to receive a lump-sum payment or direct the Company to purchase an annuity on their behalf using the after-tax proceeds of the lump sum. In the fourth quarter of 2017, the Company paid $940 million to plan participants and $230 million to an insurance company for the purchase of annuities, which were included in "Pension contributions" in the consolidated statements of cash flows. The Company also paid $205 million for income and payroll taxes for participants electing the annuity option, of which $201 million was included in "Cost of sales" and $4 million was included in "Selling, general and administrative expenses" in the consolidated statements of income and related to the Corporate segment. The Company recorded a settlement charge of $687 million associated with the payout in the fourth quarter of 2017, which was included in "Sundry income (expense) - net" in the consolidated statements of income and related to the Corporate segment. The weighted-average assumptions used to determine pension plan obligations and net periodic benefit costs for all plans are summarized in the table below: Weighted-Average Assumptions for All Pension Plans Benefit Obligations at Dec 31 Net Periodic Costs for the Year Ended 2018 2017 2018 2017 2016 Discount rate 3.69 % 3.17 % 3.17 % 3.52 % 3.85 % Interest crediting rate for applicable benefits 3.72 % 3.61 % 3.61 % 3.45 % 4.81 % Rate of compensation increase 3.84 % 3.88 % 3.88 % 3.90 % 4.04 % Expected return on plan assets — — 7.11 % 7.16 % 7.22 % The weighted-average assumptions used to determine pension plan obligations and net periodic benefit costs for U.S. plans are summarized in the table below: Weighted-Average Assumptions for U.S. Pension Plans Benefit Obligations at Dec 31 Net Periodic Costs for the Year Ended 2018 2017 2018 2017 2016 Discount rate 4.39 % 3.66 % 3.66 % 4.11 % 4.40 % Interest crediting rate for applicable benefits 4.50 % 4.50 % 4.50 % 4.50 % 4.50 % Rate of compensation increase 4.25 % 4.25 % 4.25 % 4.25 % 4.50 % Expected return on plan assets — — 7.92 % 7.91 % 7.77 % Other Postretirement Benefit Plans The Company provides certain health care and life insurance benefits to retired employees and survivors. The Company’s plans outside of the United States are not significant; therefore, this discussion relates to the U.S. plans only. The plans provide health care benefits, including hospital, physicians’ services, drug and major medical expense coverage, and life insurance benefits. In general, for employees hired before January 1, 1993, the plans provide benefits supplemental to Medicare when retirees are eligible for these benefits. The Company and the retiree share the cost of these benefits, with the Company portion increasing as the retiree has increased years of credited service, although there is a cap on the Company portion. The Company has the ability to change these benefits at any time. Employees hired after January 1, 2008, are not covered under the plans. The Company funds most of the cost of these health care and life insurance benefits as incurred. In 2018 , the Company did not make any contributions to its other postretirement benefit plan trusts. The trusts did not hold assets at December 31, 2018 . The Company does not expect to contribute assets to its other postretirement benefit plan trusts in 2019 . The weighted-average assumptions used to determine other postretirement benefit obligations and net periodic benefit costs for the U.S. plans are provided below: Weighted-Average Assumptions for U.S. Other Postretirement Benefits Plans Benefit Obligations at Dec 31 Net Periodic Costs for the Year Ended 2018 2017 2018 2017 2016 Discount rate 4.24 % 3.51 % 3.51 % 3.83 % 3.96 % Health care cost trend rate assumed for next year 6.50 % 6.75 % 6.75 % 7.00 % 7.25 % Rate to which the cost trend rate is assumed to decline (the ultimate health care cost trend rate) 5.00 % 5.00 % 5.00 % 5.00 % 5.00 % Year that the rate reaches the ultimate health care cost trend rate 2025 2025 2025 2025 2025 Assumptions The Company determines the expected long-term rate of return on plan assets by performing a detailed analysis of key economic and market factors driving historical returns for each asset class and formulating a projected return based on factors in the current environment. Factors considered include, but are not limited to, inflation, real economic growth, interest rate yield, interest rate spreads and other valuation measures and market metrics. The expected long-term rate of return for each asset class is then weighted based on the strategic asset allocation approved by the governing body for each plan. The Company’s historical experience with the pension fund asset performance is also considered. The Company uses the spot rate approach to determine the discount rate utilized to measure the service cost and interest cost components of net periodic pension and other postretirement benefit costs for the U.S. and other selected countries. Under the spot rate approach, the Company calculates service costs and interest costs by applying individual spot rates from the Willis Towers Watson RATE:Link yield curve (based on high-quality corporate bond yields) for each selected country to the separate expected cash flow components of service cost and interest cost. Service cost and interest cost for all other plans are determined on the basis of the single equivalent discount rates derived in determining those plan obligations. The discount rates utilized to measure the pension and other postretirement obligations of the U.S. qualified plans are based on the yield on high-quality corporate fixed income investments at the measurement date. Future expected actuarially determined cash flows for the Company’s U.S. plans are individually discounted at the spot rates under the Willis Towers Watson U.S. RATE:Link 60-90 corporate yield curve (based on 60th to 90th percentile high-quality corporate bond yields) to arrive at the plan’s obligations as of the measurement date. The Company utilizes a modified version of the Society of Actuaries’ mortality tables released in 2014 and a modified version of the generational mortality improvement scale released in 2018 for purposes of measuring the U.S. pension and other postretirement obligations, based on an evaluation of the mortality experience of the Company’s pension plans. Summarized information on the Company's pension and other postretirement benefit plans is as follows: Change in Projected Benefit Obligations, Plan Assets and Funded Status of All Significant Plans Defined Benefit Pension Plans Other Postretirement Benefits In millions 2018 2017 2018 2017 Change in projected benefit obligations: Benefit obligations at beginning of year $ 31,851 $ 30,280 $ 1,567 $ 1,835 Service cost 520 506 12 14 Interest cost 886 883 45 54 Plan participants' contributions 19 14 — — Actuarial changes in assumptions and experience (1,754 ) 1,804 (13 ) (198 ) Benefits paid (1,476 ) (1,440 ) (123 ) (151 ) Plan amendments 17 14 — — Acquisitions/divestitures/other 1 (45 ) 50 — — Effect of foreign exchange rates (418 ) 932 (10 ) 13 Termination benefits/curtailment cost/settlements 2 — (1,192 ) — — Benefit obligations at end of year $ 29,600 $ 31,851 $ 1,478 $ 1,567 Change in plan assets: Fair value of plan assets at beginning of year $ 23,401 $ 21,208 $ — $ — Actual return on plan assets (742 ) 2,500 — — Employer contributions 1,656 1,676 — — Plan participants' contributions 19 14 — — Benefits paid (1,476 ) (1,440 ) — — Acquisitions/divestitures/other 3 — (15 ) — — Effect of foreign exchange rates (314 ) 646 — — Settlements 4 — (1,188 ) — — Fair value of plan assets at end of year $ 22,544 $ 23,401 $ — $ — Funded status: U.S. plans with plan assets $ (4,066 ) $ (5,363 ) $ — $ — Non-U.S. plans with plan assets (2,041 ) (2,257 ) — — All other plans (695 ) (720 ) (1,478 ) (1,567 ) Plans of discontinued operations (254 ) (110 ) — — Funded status at end of year $ (7,056 ) $ (8,450 ) $ (1,478 ) $ (1,567 ) Amounts recognized in the consolidated balance sheets at Dec 31: Deferred charges and other assets $ 491 $ 548 $ — $ — Accrued and other current liabilities (50 ) (47 ) (131 ) (125 ) Pension and other postretirement benefits - noncurrent (7,227 ) (8,679 ) (1,347 ) (1,442 ) Liabilities of discontinued operations - current (270 ) (1 ) — — Liabilities of discontinued operations - noncurrent — (271 ) — — Net amount recognized $ (7,056 ) $ (8,450 ) $ (1,478 ) $ (1,567 ) Pretax amounts recognized in accumulated other comprehensive loss at Dec 31: Net loss (gain) $ 10,841 $ 10,899 $ (315 ) $ (326 ) Prior service credit (224 ) (265 ) — — Pretax balance in accumulated other comprehensive loss at end of year $ 10,617 $ 10,634 $ (315 ) $ (326 ) 1. The 2018 impact includes the divestiture of a business with pension benefit obligations of $37 million . The 2017 impact includes the reclassification of a China pension liability of $69 million from "Other noncurrent obligations" to "Pension and other postretirement benefits - noncurrent" and the divestiture of a South Korean company with pension benefit obligations of $25 million . 2. The 2017 impact includes the settlement of certain plan obligations for a U.S. non-qualified pension plan of $1,170 million required due to a change in control provision. The 2017 impact also includes the conversion of a South Korean pension plan of $22 million to a defined contribution plan. 3. The 2017 impact relates to the divestiture of a South Korean company. 4. The 2017 impact includes payments made of $1,170 million to settle certain plan obligations of a U.S. non-qualified pension plan required due to a change in control provision. The 2017 impact also includes payments made of $18 million to convert a South Korean pension plan to a defined contribution plan. A significant component of the overall decrease in the Company's benefit obligation for the year ended December 31, 2018 was due to the weighted-average change in discount rates, which increased from 3.17 percent at December 31, 2017 to 3.69 percent at December 31, 2018. A significant component of the overall increase in the Company's benefit obligation for the year ended December 31, 2017 was also due to the weighted-average change in discount rates, which decreased from 3.52 percent at December 31, 2016 to 3.17 percent at December 31, 2017. The accumulated benefit obligation for all pension plans was $28.3 billion and $30.4 billion at December 31, 2018 and 2017 , respectively. Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets at Dec 31 2018 2017 In millions Accumulated benefit obligations $ 25,392 $ 27,248 Fair value of plan assets $ 18,902 $ 19,515 Pension Plans with Projected Benefit Obligations in Excess of Plan Assets at Dec 31 2018 2017 In millions Projected benefit obligations $ 26,599 $ 28,576 Fair value of plan assets $ 19,051 $ 19,578 Net Periodic Benefit Costs for All Significant Plans for the Year Ended Dec 31 Defined Benefit Pension Plans Other Postretirement Benefits In millions 2018 2017 2016 2018 2017 2016 Net Periodic Benefit Costs: Service cost $ 520 $ 506 $ 463 $ 12 $ 14 $ 13 Interest cost 886 883 846 45 54 52 Expected return on plan assets (1,644 ) (1,548 ) (1,447 ) — — — Amortization of prior service credit (24 ) (25 ) (24 ) — — (3 ) Amortization of unrecognized (gain) loss 642 638 587 (24 ) (6 ) (7 ) Curtailment/settlement/other 1 — 683 (36 ) — — — Net periodic benefit costs $ 380 $ 1,137 $ 389 $ 33 $ 62 $ 55 Less: discontinued operations 101 105 97 3 3 3 Net periodic benefit costs - continuing operations $ 279 $ 1,032 $ 292 $ 30 $ 59 $ 52 Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss: Net (gain) loss $ 584 $ 845 $ 1,954 $ (13 ) $ (199 ) $ 14 Prior service cost 17 14 — — — — Amortization of prior service credit 24 25 24 — — 3 Amortization of unrecognized gain (loss) (642 ) (638 ) (587 ) 24 6 7 Settlement loss 2 — (687 ) — — — — Total recognized in other comprehensive (income) loss $ (17 ) $ (441 ) $ 1,391 $ 11 $ (193 ) $ 24 Total recognized in net periodic benefit cost and other comprehensive (income) loss $ 363 $ 696 $ 1,780 $ 44 $ (131 ) $ 79 1. The 2017 impact relates to the settlement of a U.S. non-qualified plan triggered by a change in control provision. The 2016 impact relates to the curtailment of benefits for certain participants of a Dow Silicones plan in the U.S. 2. The 2017 impact relates to the settlement of a U.S. non-qualified plan triggered by a change in control provision. On January 1, 2018, the Company adopted ASU 2017-07, which impacted the presentation of the components of net periodic benefit cost in the consolidated statements of income. Net periodic benefit cost, other than the service cost component, is now included in "Sundry income (expense) - net" in the consolidated statements of income. See Notes 2 and 9 for additional information. Estimated Future Benefit Payments The estimated future benefit payments of continuing operations, reflecting expected future service, as appropriate, are presented in the following table: Estimated Future Benefit Payments at Dec 31, 2018 Defined Benefit Pension Plans Other Postretirement Benefits In millions 2019 $ 1,546 $ 133 2020 1,554 129 2021 1,580 129 2022 1,619 125 2023 1,656 120 2024-2028 8,596 519 Total $ 16,551 $ 1,155 Plan Assets Plan assets consist primarily of equity and fixed income securities of U.S. and foreign issuers, and include alternative investments such as real estate, private market securities and absolute return strategies. At December 31, 2018 , plan assets totaled $22.5 billion and included no directly held common stock of DowDuPont. At December 31, 2017 , plan assets totaled $23.4 billion and included no directly held common stock of DowDuPont. The Company's investment strategy for the plan assets is to manage the assets in relation to the liability in order to pay retirement benefits to plan participants over the life of the plans. This is accomplished by identifying and managing the exposure to various market risks, diversifying investments across various asset classes and earning an acceptable long-term rate of return consistent with an acceptable amount of risk, while considering the liquidity needs of the plans. The plans are permitted to use derivative instruments for investment purposes, as well as for hedging the underlying asset and liability exposure and rebalancing the asset allocation. The plans use value-at-risk, stress testing, scenario analysis and Monte Carlo simulations to monitor and manage both the risk within the portfolios and the surplus risk of the plans. Equity securities primarily include investments in large- and small-cap companies located in both developed and emerging markets around the world. Fixed income securities include investment and non-investment grade corporate bonds of companies diversified across industries, U.S. treasuries, non-U.S. developed market securities, U.S. agency mortgage-backed securities, emerging market securities and fixed income related funds. Alternative investments primarily include investments in real estate, private equity limited partnerships and absolute return strategies. Other significant investment types include various insurance contracts and interest rate, equity, commodity and foreign exchange derivative investments and hedges. The Company mitigates the credit risk of investments by establishing guidelines with investment managers that limit investment in any single issue or issuer to an amount that is not material to the portfolio being managed. These guidelines are monitored for compliance both by the Company and external managers. Credit risk related to derivative activity is mitigated by utilizing multiple counterparties, collateral support agreements and centralized clearing, where appropriate. The Northern Trust Collective Government Short Term Investment money market fund is utilized as the sweep vehicle for the U.S. plans, which from time to time can represent a significant investment. For one U.S. plan, approximately 35 percent of the liability is covered by a participating group annuity issued by Prudential Insurance Company. The weighted-average target allocation for plan assets of the Company's pension plans is summarized as follows: Target Allocation for Plan Assets at Dec 31, 2018 Target Allocation Asset Category Equity securities 36 % Fixed income securities 35 Alternative investments 28 Other investments 1 Total 100 % Fair value calculations may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. For pension plan assets classified as Level 1 measurements (measured using quoted prices in active markets), total fair value is either the price of the most recent trade at the time of the market close or the official close price, as defined by the exchange on which the asset is most actively traded on the last trading day of the period, multiplied by the number of units held without consideration of transaction costs. For pension plan assets 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. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance and quality checks. For derivative assets and liabilities, standard industry models are used to calculate the fair value of the various financial instruments based on significant observable market inputs, such as foreign exchange rates, commodity prices, swap rates, interest rates and implied volatilities obtained from various market sources. For other pension plan assets for which observable inputs are used, fair value is derived through the use of fair value models, such as a discounted cash flow model or other standard pricing models. For pension plan assets classified as Level 3 measurements, total fair value is based on significant unobservable inputs including assumptions where there is little, if any, market activity for the investment. Certain pension plan assets are held in funds where fair value is based on an estimated net asset value per share (or its equivalent) as of the most recently available fund financial statements which are received on a monthly or quarterly basis. These valuations are reviewed for reasonableness based on applicable sector, benchmark and company performance. Adjustments to valuations are made where appropriate to arrive at an estimated net asset value per share at the measurement date. These funds are not classified within the fair value hierarchy. The following table summarizes the bases used to measure the Company’s pension plan assets at fair value for the years ended December 31, 2018 and 2017 : Basis of Fair Value Measurements Dec 31, 2018 Dec 31, 2017 In millions Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 877 $ 818 $ 59 $ — $ 772 $ 671 $ 101 $ — Equity securities: U.S. equity securities 1 $ 3,493 $ 3,251 $ 241 $ 1 $ 3,755 $ 3,416 $ 339 $ — Non - U.S. equity securities 4,242 3,497 707 38 5,551 4,533 978 40 Total equity securities $ 7,735 $ 6,748 $ 948 $ 39 $ 9,306 $ 7,949 $ 1,317 $ 40 Fixed income securities: Debt - government-issued $ 4,751 $ 285 $ 4,466 $ — $ 4,596 $ 158 $ 4,437 $ 1 Debt - corporate-issued 2,929 411 2,518 — 3,300 351 2,935 14 Debt - asset-backed 90 — 89 1 101 — 100 1 Total fixed income securities $ 7,770 $ 696 $ 7,073 $ 1 $ 7,997 $ 509 $ 7,472 $ 16 Alternative investments: 2 Private market securities $ 1 $ — $ — $ 1 $ — $ — $ — $ — Real estate 19 19 — — 21 21 — — Derivatives - asset position 451 17 434 — 261 2 259 — Derivatives - liability position (506 ) (19 ) (487 ) — (305 ) (2 ) (303 ) — Total alternative investments $ (35 ) $ 17 $ (53 ) $ 1 $ (23 ) $ 21 $ (44 ) $ — Other investments 2 $ 380 $ 47 $ 333 $ — $ 273 $ 37 $ 236 $ — Subtotal $ 16,727 $ 8,326 $ 8,360 $ 41 $ 18,325 $ 9,187 $ 9,082 $ 56 Investments measured at net asset value: 2 Hedge funds $ 1,637 $ 1,595 Private market securities 2,196 1,390 Real estate 2,080 2,200 Total investments measured at net asset value $ 5,913 $ 5,185 Items to reconcile to fair value of plan assets: Pension trust receivables 3 $ 29 $ 27 Pension trust payables 4 (125 ) (136 ) Total $ 22,544 $ 23,401 1. No DowDuPont common stock was directly held at December 31, 2018 or December 31, 2017 . 2. The Company reviewed its fair value technique and elected to present assets valued at net asset value per share as a practical expedient outside of the fair value hierarchy. The assets are presented as "Investments measured at net asset value." 3. Primarily receivables for investment securities sold. 4. Primarily payables for investment securities purchased. The following table summarizes the changes in the fair value of Level 3 pension plan assets for the years ended December 31, 2018 and 2017 : Fair Value Measurement of Level 3 Pension Plan Assets Equity Securities Fixed Income Securities Alternative Investments Other Investments Total In millions Balance at Jan 1, 2017, as previously reported $ 33 $ 17 $ 4,117 $ 95 $ 4,262 Reclassification of investments measured at net asset value 1 — — (4,061 ) (95 ) (4,156 ) Balance at Jan 1, 2017, as restated $ 33 $ 17 $ 56 $ — $ 106 Actual return on assets: Relating to assets sold during 2017 (1 ) — 5 — 4 Relating to assets held at Dec 31, 2017 5 1 (1 ) — 5 Purchases, sales and settlements, net 3 (2 ) (60 ) — (59 ) Balance at Dec 31, 2017 $ 40 $ 16 $ — $ — $ 56 Actual return on assets: Relating to assets sold during 2018 — 4 (1 ) 1 4 Relating to assets held at Dec 31, 2018 (3 ) (4 ) — — (7 ) Purchases, sales and settlements, net 2 (15 ) 2 (1 ) (12 ) Balance at Dec 31, 2018 $ 39 $ 1 $ 1 $ — $ 41 1. The Company reviewed its fair value technique and elected to present assets valued at net asset value per share as a practical expedient outside of the fair value hierarchy, including those classified as Level 3 pension plan assets. The assets are presented as "Investments measured at net asset value." Defined Contribution Plans U.S. employees may participate in defined contribution plans (Employee Savings Plans or 401(k) plans) by contributing a portion of their compensation, which is partially matched by the Company. Defined contribution plans also cover employees in some subsidiaries in other countries, including Australia, Brazil, Canada, Italy, Spain and the United Kingdom. Expense of continuing operations recognized for all defined contribution plans was $186 million in 2018 , $286 million in 2017 and $220 million in 2016 . |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company grants stock-based compensation to employees and non-employee directors in the form of stock incentive plans, which include stock options, restricted stock units ("RSUs") (formerly termed deferred stock) and restricted stock. The Company also provides stock-based compensation in the form of performance stock units ("PSUs") (formerly termed performance deferred stock) and the Employee Stock Purchase Plan (“ESPP”), which grants eligible employees the right to purchase shares of the Company's common stock at a discounted price. In connection with the Merger, on August 31, 2017 ("Conversion Date") all outstanding TDCC stock options and RSU awards were converted into stock options and RSU awards with respect to DowDuPont common stock. The stock options and RSU awards have the same terms and conditions under the applicable plans and award agreements prior to the Merger. All outstanding and nonvested PSU awards were converted into RSU awards with respect to DowDuPont common stock at the greater of the applicable performance target or the actual performance as of the effective time of the Merger. Changes in the fair value of liability instruments are recognized as compensation expense each quarter. TDCC and DuPont did not merge their stock-based compensation plans as a result of the Merger. TDCC and DuPont stock-based compensation plans were assumed by DowDuPont and continued in place with the ability to grant and issue DowDuPont common stock until separation. The total stock-based compensation expense included in continuing operations within the consolidated statements of income was $188 million , $310 million and $225 million in 2018 , 2017 and 2016 , respectively. The income tax benefits related to stock-based compensation arrangements were $42 million , $115 million and $83 million in 2018 , 2017 and 2016 , respectively. Amounts disclosed throughout the remainder of this footnote are inclusive of activity attributable to both continuing operations and discontinued operations, as the impact of discontinued operations is not significant. Accounting for Stock-Based Compensation The Company grants stock-based compensation awards that vest over a specified period or upon employees meeting certain performance and/or retirement eligibility criteria. The fair value of equity instruments issued to employees is measured on the grant date. The fair value of liability instruments (granted to executive employees subject to stock ownership requirements, that provide the recipient the option to elect to receive a cash payment equal to the value of the stock award on the date of delivery) is measured at the end of each quarter. The fair value of equity and liability instruments is expensed over the vesting period or, in the case of retirement, from the grant date to the date on which retirement eligibility provisions have been met and additional service is no longer required. The Company estimates expected forfeitures. The Company historically used a lattice-based option valuation model to estimate the fair value of stock options and used a Monte Carlo simulation for the market portion of PSU awards. Effective with the first quarter of 2018 grant, the Company began using the Black-Scholes option valuation model to estimate the fair value of stock options. This valuation methodology was adopted as a result of the Merger to align valuation methodologies with DuPont and better align with industry practice. The Company used the Black-Scholes option valuation model for subscriptions to purchase shares under the ESPP. The weighted-average assumptions used to calculate total stock-based compensation are included in the following table: Weighted-Average Assumptions 2018 2017 2016 Dividend yield 2.13 % 3.01 % 4.13 % Expected volatility 23.34 % 23.71 % 31.60 % Risk-free interest rate 2.83 % 1.28 % 1.12 % Expected life of stock options granted during period (years) 6.2 7.5 7.8 Life of Employee Stock Purchase Plan (months) — 3 4 The dividend yield assumption was equal to the dividend yield on the grant date, which reflected the most recent DowDuPont quarterly dividend payment of $0.38 per share in 2018 ( $0.46 per share in 2017 and 2016 on TDCC Common Stock). The expected volatility assumptions for the 2016 and 2017 stock options and ESPP were based on an equal weighting of the historical daily volatility for the contractual term of the awards and current implied volatility from exchange-traded options. The expected volatility assumptions for the 2018 stock options were based on an equal weighting of the historical daily volatility for the expected term of the awards and current implied volatility from exchange-traded options. The expected volatility assumption for the market portion of the 2016 and 2017 PSU awards were based on historical daily volatility for the term of the award. The risk-free interest rate was based on the weighted-average of U.S. Treasury strip rates over the contractual term of the 2016 and 2017 options. The risk-free interest rate was based on the U.S. Treasury strip rates over the expected life of the 2018 options. The expected life of stock options granted was based on an analysis of historical exercise patterns. Stock Incentive Plan The Company has historically granted equity awards under various plans (the "Prior Plans"). On February 9, 2012, the Board authorized The Dow Chemical Company 2012 Stock Incentive Plan (the "2012 Plan"), which was approved by stockholders at TDCC's annual meeting on May 10, 2012 ("Original Effective Date") and became effective on that date. On February 13, 2014, the Board adopted The Dow Chemical Company Amended and Restated 2012 Stock Incentive Plan (the "2012 Restated Plan"). The 2012 Restated Plan was approved by stockholders at TDCC's annual meeting on May 15, 2014, and became effective on that date. The Prior Plans were superseded by the 2012 Plan and the 2012 Restated Plan (collectively, the "2012 Plan"). Under the 2012 Plan, the Company may grant options, RSUs, PSUs, restricted stock, stock appreciation rights and stock units to employees and non-employee directors until the tenth anniversary of the Original Effective Date, subject to an aggregate limit and annual individual limits. The terms of the grants are fixed at the grant date. TDCC's stock-based compensation programs were assumed by DowDuPont and continued in place with the ability to grant and issue DowDuPont common stock until separation. At December 31, 2018 , there were approximately 19 million shares of DowDuPont common stock available for grant under the 2012 Plan. Stock Options The Company grants stock options to certain employees, subject to certain annual and individual limits, with terms of the grants fixed at the grant date. The exercise price of each stock option equals the market price of the common stock on the grant date. Options vest from one to three years, and have a maximum term of 10 years. The following table summarizes stock option activity for 2018 : Stock Options 2018 Shares in thousands Shares Exercise Price 1 Outstanding at Jan 1, 2018 26,628 $ 38.30 Granted 6,571 $ 71.43 Exercised (4,074 ) $ 30.65 Forfeited/Expired (279 ) $ 61.47 Outstanding at Dec 31, 2018 28,846 $ 46.70 Remaining contractual life in years 5.46 Aggregate intrinsic value in millions $ 327 Exercisable at Dec 31, 2018 21,813 $ 39.99 Remaining contractual life in years 4.40 Aggregate intrinsic value in millions $ 322 1. Weighted-average per share. Additional Information about Stock Options In millions, except per share amounts 2018 2017 2016 Weighted-average fair value per share of options granted $ 15.38 $ 14.44 $ 10.95 Total compensation expense for stock option plans $ 68 $ 37 $ 32 Related tax benefit $ 15 $ 14 $ 12 Total amount of cash received from the exercise of options $ 112 $ 310 $ 312 Total intrinsic value of options exercised 1 $ 160 $ 286 $ 153 Related tax benefit $ 36 $ 106 $ 57 1. Difference between the market price at exercise and the price paid by the employee to exercise the options. Total unrecognized compensation cost related to unvested stock option awards of $36 million at December 31, 2018 , is expected to be recognized over a weighted-average period of 1.91 years. Restricted Stock Units The Company grants restricted stock units to certain employees. The grants vest after a designated period of time, generally one to five years. The following table shows changes in nonvested RSUs: RSU Awards 2018 Shares in thousands Shares Grant Date Fair Value 1 Nonvested at Jan 1, 2018 13,346 $ 50.71 Granted 2,022 $ 71.46 Vested (5,409 ) $ 46.04 Canceled (224 ) $ 59.40 Nonvested at Dec 31, 2018 9,735 $ 57.41 1. Weighted-average per share. Additional Information about RSUs In millions, except per share amounts 2018 2017 2016 Weighted-average fair value per share of RSUs granted $ 71.46 $ 61.29 $ 46.25 Total fair value of RSUs vested 1 $ 382 $ 179 $ 166 Related tax benefit $ 86 $ 66 $ 61 Total compensation expense for RSU awards $ 144 $ 178 $ 97 Related tax benefit $ 32 $ 66 $ 36 1. Includes the fair value of shares vested in prior years and delivered in the reporting year. In 2018 , the Company paid $45 million in cash, equal to the value of the stock award on the date of delivery, to certain executive employees to settle approximately 625,000 RSUs (there were no RSUs settled in cash in 2017 and 2016 ). Total unrecognized compensation cost related to RSU awards of $126 million at December 31, 2018 , is expected to be recognized over a weighted-average period of 1.68 years. At December 31, 2018 , approximately 18,000 RSUs with a grant date weighted-average fair value per share of $35.12 had previously vested, but were not issued. These shares are scheduled to be issued to employees within six months to three years or upon retirement. Total incremental pretax compensation expense resulting from the conversion of PSU awards into RSU awards was $25 million ( $20 million was recognized in the second half of 2017 and $5 million to be recognized over the remaining service period). Approximately 5,000 employees were impacted by the conversion. Performance Stock Units The Company grants performance stock units to certain employees. The grants vest when the Company attains specified performance targets, such as return on capital and relative total shareholder return, over a predetermined period, generally one to three years. In November 2017, the Company granted PSUs to senior leadership measured on the realization of cost savings in connection with cost synergy commitments, as well as the Company’s ability to complete the business separations. Performance and payouts are determined independently for each metric. Compensation expense related to PSU awards is recognized over the lesser of the service or performance period. Changes in the fair value of liability instruments are recognized as compensation expense each quarter. The following table shows the PSU awards granted: PSU Awards Target Shares Granted 1 Grant Date Fair Value 2 Shares in thousands Year Performance Period 2017 Sep 1, 2017 – Aug 31, 2019 232 $ 71.16 2017 3 Jan 1, 2017 – Dec 31, 2019 1,728 $ 81.99 2016 3 Jan 1, 2016 – Dec 31, 2018 2,283 $ 52.68 1. At the end of the performance period, the actual number of shares issued can range from zero to 200% of target shares granted. 2. Weighted-average per share. 3. Converted to RSUs as a result of the Merger. There was no activity in nonvested PSUs in 2018. At January 1, 2018 and December 31, 2018, there were 232,000 target shares of nonvested PSUs outstanding with a grant date fair value of $71.16 . Additional Information about PSUs In millions, except share amounts 2018 2017 2016 Total fair value of PSUs vested and delivered 1 $ — $ 202 $ 103 Related tax benefit $ — $ 75 $ 38 Total compensation expense for PSU awards $ 12 $ 106 $ 125 Related tax benefit $ 3 $ 39 $ 46 Shares of PSUs settled in cash (in thousands) 2 — 616 861 Total cash paid to settle PSUs 3 $ — $ 38 $ 40 1. Includes the fair value of shares vested in prior years and delivered in the reporting year. 2. PSU awards vested in prior years and delivered in the reporting year. 3. Cash paid to certain executive employees for PSU awards vested in prior periods and delivered in the reporting year, equal to the value of the stock award on the date of delivery. Total unrecognized compensation cost related to PSU awards of $8 million at December 31, 2018 , is expected to be recognized over a weighted-average period of 0.67 years. Restricted Stock Under the 2012 Plan, the Company may grant shares (including options, stock appreciation rights, stock units and restricted stock) to non-employee directors over the 10-year duration of the program, subject to the plan's aggregate limit as well as annual individual limits. The restricted stock issued under this plan cannot be sold, assigned, pledged or otherwise transferred by the non-employee director, until retirement or termination of service to the Company. The following table shows the restricted stock issued under this plan: Restricted Stock Shares Issued (in thousands) Weighted-Average Fair Value Year 2018 36 $ 62.82 2017 33 $ 62.04 2016 32 $ 50.55 Employee Stock Purchase Plan On February 9, 2012, the Board authorized The Dow Chemical Company 2012 Employee Stock Purchase Plan (the "2012 ESPP") which was approved by stockholders at TDCC’s annual meeting on May 10, 2012. When offered, most employees are eligible to purchase shares of common stock of TDCC valued at up to 10 percent of their annual base salary. The value is determined using the plan price multiplied by the number of shares subscribed to by the employee. The plan price of the stock is set at an amount equal to at least 85 percent of the fair market value (closing price) of the common stock on a date during the fourth quarter of the year prior to the offering, or the average fair market value (closing price) of the common stock over a period during the fourth quarter of the year prior to the offering, in each case, specified by the Executive Vice President of Human Resources. The most recent offering of the 2012 ESPP closed on July 15, 2017. The ESPP was not offered in 2018 and no current offerings remain outstanding. Additional Information about Employee Stock Purchase Plan In millions, except per share amounts 2018 2017 2016 Weighted-average fair value per share of purchase rights granted $ — $ 10.70 $ 3.40 Total compensation expense for ESPP $ — $ 38 $ 7 Related tax benefit $ — $ 14 $ 3 Total amount of cash received from the exercise of purchase rights $ — $ 179 $ 86 Total intrinsic value of purchase rights exercised 1 $ — $ 48 $ 23 Related tax benefit $ — $ 18 $ 9 1. Difference between the market price at exercise and the price paid by the employee to exercise the purchase rights. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Investments, All Other Investments [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS The following table summarizes the fair value of financial instruments at December 31, 2018 and 2017 : Fair Value of Financial Instruments at Dec 31 2018 2017 In millions Cost Gain Loss Fair Value Cost Gain Loss Fair Value Cash equivalents $ 566 $ — $ — $ 566 $ 2,280 $ — $ — $ 2,280 Marketable securities $ 100 $ — $ — $ 100 $ 4 $ — $ — $ 4 Other investments: Debt securities: Government debt 1 $ 714 $ 9 $ (23 ) $ 700 $ 637 $ 13 $ (11 ) $ 639 Corporate bonds 1,026 20 (63 ) 983 704 32 (3 ) 733 Total debt securities $ 1,740 $ 29 $ (86 ) $ 1,683 $ 1,341 $ 45 $ (14 ) $ 1,372 Equity securities 2 16 1 (1 ) 16 164 2 (26 ) 140 Total other investments $ 1,756 $ 30 $ (87 ) $ 1,699 $ 1,505 $ 47 $ (40 ) $ 1,512 Total cash equivalents, marketable securities and other investments $ 2,422 $ 30 $ (87 ) $ 2,365 $ 3,789 $ 47 $ (40 ) $ 3,796 Long-term debt including debt due within one year 3 $ (19,591 ) $ 351 $ (972 ) $ (20,212 ) $ (20,505 ) $ 6 $ (2,104 ) $ (22,603 ) Derivatives relating to: Interest rates $ — $ — $ (64 ) $ (64 ) $ — $ — $ (4 ) $ (4 ) Foreign currency — 120 (43 ) 77 — 22 (112 ) (90 ) Commodities 4 — 91 (178 ) (87 ) — 130 (256 ) (126 ) Total derivatives $ — $ 211 $ (285 ) $ (74 ) $ — $ 152 $ (372 ) $ (220 ) 1. U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. 2. Equity securities with a readily determinable fair value. Presented in accordance with ASU 2016-01. See Note 2 for additional information. 3. Cost includes fair value hedge adjustments of $18 million at December 31, 2018 and $19 million at December 31, 2017 on $2,290 million of debt at December 31, 2018 and $2,390 million of debt at December 31, 2017 . 4. Presented net of cash collateral where master netting arrangements allow. Cost approximates fair value for all other financial instruments. Cash Equivalents At December 31, 2018 , the Company had $410 million ( $1,771 million at December 31, 2017 ) of held-to-maturity securities (primarily treasury bills and time deposits) classified as cash equivalents, as these securities had maturities of three months or less at the time of purchase. The Company’s investments in held-to-maturity securities are held at amortized cost, which approximates fair value. At December 31, 2018 , the Company had investments in money market funds of $156 million classified as cash equivalents ( $509 million at December 31, 2017 ). Marketable Securities At December 31, 2018 , the Company had $100 million ( $4 million at December 31, 2017 ) of debt securities with maturities of less than one year at the time of purchase. Debt Securities The Company’s investments in debt securities are primarily classified as available-for-sale. The following table provides the investing results from available-for-sale securities for the years ended December 31, 2018 , 2017 and 2016 . Investing Results 1 In millions 2018 2017 2016 Proceeds from sales of available-for-sale securities $ 1,053 $ 245 $ 396 Gross realized gains $ 21 $ 5 $ 15 Gross realized losses $ 30 $ — $ 1 1. Prior period amounts were updated to conform with the current year presentation as a result of the adoption of ASU 2016-01. See Note 2 for additional information. The following table summarizes the contractual maturities of the Company’s investments in debt securities: Contractual Maturities of Debt Securities at Dec 31, 2018 1 Amortized Cost Fair Value In millions Within one year $ 124 $ 124 One to five years 455 444 Six to ten years 717 683 After ten years 444 432 Total $ 1,740 $ 1,683 1. Includes marketable securities with maturities of less than one year. Portfolio managers regularly review the Company’s holdings to determine if any investments in debt securities are other-than-temporarily impaired. The analysis includes reviewing the amount of the impairment, as well as the length of time it has been impaired. The credit rating of the issuer, current credit rating trends, the trends of the issuer’s overall sector, the ability of the issuer to pay expected cash flows and the length of time the security has been in a loss position are considered in determining whether unrealized losses represent an other-than-temporary impairment. The Company did not have any credit-related losses in 2018 , 2017 or 2016 . The following tables provide the fair value and gross unrealized losses of the Company’s investments in debt securities that were deemed to be temporarily impaired at December 31, 2018 and 2017 , aggregated by investment category: Temporarily Impaired Debt Securities at Dec 31, 2018 Less than 12 months 12 months or more Total Fair Value Unrealized Losses Fair Unrealized Fair Value Unrealized Losses In millions Government debt 1 $ 287 $ (17 ) $ 187 $ (6 ) $ 474 $ (23 ) Corporate bonds 724 (58 ) 64 (5 ) 788 (63 ) Total temporarily impaired debt securities $ 1,011 $ (75 ) $ 251 $ (11 ) $ 1,262 $ (86 ) 1. U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities' obligations. Temporarily Impaired Debt Securities at Dec 31, 2017 Less than 12 months 12 months or more Total Fair Value Unrealized Losses Fair Unrealized Fair Value Unrealized Losses In millions Government debt 1 $ 295 $ (4 ) $ 151 $ (7 ) $ 446 $ (11 ) Corporate bonds 163 (2 ) 19 (1 ) 182 (3 ) Total temporarily impaired debt securities $ 458 $ (6 ) $ 170 $ (8 ) $ 628 $ (14 ) 1. U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities' obligations. Equity Securities The Company’s investments in equity securities with a readily determinable fair value totaled $16 million at December 31, 2018 ( $140 million at December 31, 2017 ). The aggregate carrying value of the Company’s investments in equity securities where fair value is not readily determinable totaled $204 million at December 31, 2018 , reflecting the carrying value of the investments. There were no material adjustments to the carrying value of the not readily determinable investments for impairment or observable price changes for the year ended December 31, 2018 . The net unrealized gain recognized in earnings on equity securities totaled $7 million for the year ended December 31, 2018 . Repurchase and Reverse Repurchase Agreement Transactions The Company enters into repurchase and reverse repurchase agreements. These transactions are accounted for as collateralized borrowings and lending transactions bearing a specified rate of interest and are short-term in nature with original maturities of 30 days or less. The underlying collateral is typically treasury bills with longer maturities than the repurchase agreement. The impact of these transactions is not material to the Company’s results. There were no repurchase or reverse repurchase agreements outstanding at December 31, 2018 and 2017 . Risk Management The Company’s business operations give rise to market risk exposure due to changes in foreign exchange rates, interest rates, commodity prices and other market factors such as equity prices. To manage such risks effectively, the Company enters into hedging transactions, pursuant to established guidelines and policies that enable it to mitigate the adverse effects of financial market risk. Derivatives used for this purpose are designated as hedges per the accounting guidance related to derivatives and hedging activities, where appropriate. A secondary objective is to add value by creating additional non-specific exposure within established limits and policies; derivatives used for this purpose are not designated as hedges. The potential impact of creating such additional exposures is not material to the Company’s results. Accounting guidance requires companies to recognize all derivative instruments as either assets or liabilities at fair value. The Company’s risk management program for interest rate, foreign currency and commodity risks is based on fundamental, mathematical and technical models that take into account the implicit cost of hedging. Risks created by derivative instruments and the mark-to-market valuations of positions are strictly monitored at all times, using value-at-risk and stress tests. Counterparty credit risk arising from these contracts is not significant because the Company minimizes counterparty concentration, deals primarily with major financial institutions of solid credit quality, and the majority of its hedging transactions mature in less than three months. In addition, the Company minimizes concentrations of credit risk through its global orientation by transacting with large, internationally diversified financial counterparties. It is the Company’s policy to not have credit risk-related contingent features in its derivative instruments. No significant concentration of counterparty credit risk existed at December 31, 2018 . The Company does not anticipate losses from credit risk, and the net cash requirements arising from counterparty risk associated with risk management activities are not expected to be material in 2019 . The Company revises its strategies as market conditions dictate and management reviews its overall financial strategies and the impacts from using derivatives in its risk management program with the Company’s senior leadership who also reviews these strategies with the Dow Inc. Board and/or relevant committees thereof. The notional amounts of the Company's derivative instruments presented on a net basis at December 31, 2018 and 2017 , were as follows: Notional Amounts - Net Dec 31, 2018 Dec 31, 2017 In millions Derivatives designated as hedging instruments: Interest rate swaps $ 2,049 $ 185 Foreign currency contracts $ 4,457 $ 4,343 Derivatives not designated as hedging instruments: Interest rate swaps $ 5 $ — Foreign currency contracts $ 19,285 $ 12,041 The notional amounts of the Company's commodity derivatives at December 31, 2018 and 2017 , were as follows: Commodity Notionals - Net Dec 31, 2018 Dec 31, 2017 Notional Volume Unit Derivatives designated as hedging instruments: Hydrocarbon derivatives 39.9 71.3 million barrels of oil equivalent Derivatives not designated as hedging instruments: Hydrocarbon derivatives 1.2 4.1 million barrels of oil equivalent Power derivatives 73.9 — thousands of megawatt hours Interest Rate Risk Management The main objective of interest rate risk management is to reduce the total funding cost to the Company and to alter the interest rate exposure to the desired risk profile. To achieve this objective, the Company hedges using interest rate swaps, “swaptions,” and exchange-traded instruments. At December 31, 2018 , the Company had open interest rate swaps with maturity dates that extend through 2022. Foreign Currency Risk Management The global nature of the Company's business requires active participation in the foreign exchange markets. The Company has assets, liabilities and cash flows in currencies other than the U.S. dollar. The primary objective of the Company's foreign currency risk management is to optimize the U.S. dollar value of net assets and cash flows. To achieve this objective, the Company hedges on a net exposure basis using foreign currency forward contracts, over-the-counter option contracts, cross-currency swaps and nonderivative instruments in foreign currencies. Exposures primarily relate to assets, liabilities and bonds denominated in foreign currencies, as well as economic exposure, which is derived from the risk that currency fluctuations could affect the dollar value of future cash flows related to operating activities. At December 31, 2018 , the Company had foreign currency contracts with various expiration dates, through 2019. Commodity Risk Management The Company has exposure to the prices of commodities in its procurement of certain raw materials. The primary purpose of commodity hedging activities is to manage the price volatility associated with these forecasted inventory purchases. At December 31, 2018 , the Company had futures contracts, options and swaps to buy, sell or exchange commodities. These agreements have various expiration dates through 2022. Derivatives Not Designated in Hedging Relationships Foreign Currency Contracts The Company also uses foreign exchange forward contracts, options and cross-currency swaps that are not designated as hedging instruments primarily to manage foreign currency exposure. Commodity Contracts The Company utilizes futures, options and swap instruments that are effective as economic hedges of commodity price exposures, but do not meet hedge accounting criteria for derivatives and hedging, to reduce exposure to commodity price fluctuations on purchases of raw materials and inventory. Interest Rate Contracts The Company uses swap instruments that are not designated as hedging instruments to manage interest rate exposures. The Company uses interest rate swaps, "swaptions," and exchange-traded instruments to accomplish this objective. Accounting for Derivative Instruments and Hedging Activities Cash Flow Hedges For derivatives that are designated and qualify as cash flow hedging instruments, the gain or loss on the derivative is recorded in AOCL; it is reclassified to income in the same period or periods that the hedged transaction affects income. The unrealized amounts in AOCL fluctuate based on changes in the fair value of open contracts at the end of each reporting period. The Company anticipates volatility in AOCL and net income from its cash flow hedges. The amount of volatility varies with the level of derivative activities and market conditions during any period. The net gain from interest rate hedges included in AOCL at December 31, 2018 was $23 million after tax (net loss of $3 million after tax at December 31, 2017 ). These contracts have maturity dates that extend through 2022 . The Company had open foreign currency contracts designated as cash flow hedges of the currency risk associated with forecasted transactions not extending beyond 2019. The portion of the mark-to-market effects of the foreign currency contracts is recorded in AOCL; it is reclassified to income in the same period or periods that the underlying item affects income. The net gain from the foreign currency hedges included in AOCL at December 31, 2018 was $15 million after tax (net loss of $19 million after tax at December 31, 2017 ). Commodity swaps, futures and option contracts with maturities of not more than 60 months are utilized and designated as cash flow hedges of forecasted commodity purchases. Current open contracts hedge forecasted transactions until December 2022. The designated portion of the mark-to-market effect of the cash flow hedge instrument is recorded in AOCL; it is reclassified to income in the same period or periods that the underlying commodity purchase affects income. The net loss from commodity hedges included in AOCL at December 31, 2018 was $87 million after tax (net loss of $73 million after tax at December 31, 2017 ). Fair Value Hedges For interest rate swap instruments that are designated and qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current period income and reflected as “Interest expense and amortization of debt discount” in the consolidated statements of income. The short-cut method is used when the criteria are met. At December 31, 2018 and 2017 , the Company had no open interest rate swaps designated as fair value hedges of underlying fixed rate debt obligations. Net Foreign Investment Hedges For derivative instruments that are designated and qualify as net foreign investment hedges, the designated portion of the gain or loss on the derivative is included in “Cumulative translation adjustments” in AOCL. The Company had outstanding foreign-currency denominated debt designated as a hedge of net foreign investment of $182 million at December 31, 2018 ( $177 million at December 31, 2017 ). The results of hedges of the Company’s net investment in foreign operations included in “Cumulative translation adjustments” in AOCL was a net gain of $113 million after tax for the year ended December 31, 2018 (net loss of $76 million after tax for the year ended December 31, 2017 ). Amounts to be Reclassified within the Next Twelve Months The net after-tax amounts to be reclassified from AOCL to income within the next 12 months are a $45 million loss for commodity contracts, a $13 million gain for foreign currency contracts and a $1 million gain for interest rate contracts. The following tables provide the fair value and gross balance sheet classification of derivative instruments at December 31, 2018 and 2017 : Fair Value of Derivative Instruments Dec 31, 2018 In millions Balance Sheet Classification Gross Counterparty and Cash Collateral Netting 1 Net Amounts Included in the Consolidated Balance Sheets Asset derivatives: Derivatives designated as hedging instruments: Foreign currency contracts Other current assets $ 98 $ (42 ) $ 56 Commodity contracts Other current assets 47 (13 ) 34 Commodity contracts Deferred charges and other assets 18 (3 ) 15 Total $ 163 $ (58 ) $ 105 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets $ 128 $ (64 ) $ 64 Commodity contracts Other current assets 41 (1 ) 40 Commodity contracts Deferred charges and other assets 4 (2 ) 2 Total $ 173 $ (67 ) $ 106 Total asset derivatives $ 336 $ (125 ) $ 211 Liability derivatives: Derivatives designated as hedging instruments: Interest rate swaps Other noncurrent obligations $ 64 $ — $ 64 Foreign currency contracts Accrued and other current liabilities 46 (42 ) 4 Commodity contracts Accrued and other current liabilities 111 (18 ) 93 Commodity contracts Other noncurrent obligations 86 (9 ) 77 Total $ 307 $ (69 ) $ 238 Derivatives not designated as hedging instruments: Foreign currency contracts Accrued and other current liabilities $ 103 $ (64 ) $ 39 Commodity contracts Accrued and other current liabilities 7 (4 ) 3 Commodity contracts Other noncurrent obligations 8 (3 ) 5 Total $ 118 $ (71 ) $ 47 Total liability derivatives $ 425 $ (140 ) $ 285 1. Counterparty and cash collateral amounts represent the estimated net settlement amount when applying netting and set-off rights included in master netting arrangements between the Company and its counterparties and the payable or receivable for cash collateral held or placed with the same counterparty. Fair Value of Derivative Instruments Dec 31, 2017 In millions Balance Sheet Classification Gross Counterparty and Cash Collateral Netting 1 Net Amounts Included in the Consolidated Balance Sheets Asset derivatives: Derivatives designated as hedging instruments: Foreign currency contracts Other current assets $ 51 $ (46 ) $ 5 Commodity contracts Other current assets 20 (4 ) 16 Commodity contracts Deferred charges and other assets 70 (5 ) 65 Total $ 141 $ (55 ) $ 86 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets $ 75 $ (58 ) $ 17 Commodity contracts Other current assets 50 (5 ) 45 Commodity contracts Deferred charges and other assets 7 (3 ) 4 Total $ 132 $ (66 ) $ 66 Total asset derivatives $ 273 $ (121 ) $ 152 Liability derivatives: Derivatives designated as hedging instruments: Interest rate swaps Other noncurrent obligations $ 4 $ — $ 4 Foreign currency contracts Accrued and other current liabilities 109 (46 ) 63 Commodity contracts Accrued and other current liabilities 96 (15 ) 81 Commodity contracts Other noncurrent obligations 143 (12 ) 131 Total $ 352 $ (73 ) $ 279 Derivatives not designated as hedging instruments: Foreign currency contracts Accrued and other current liabilities $ 107 $ (58 ) $ 49 Commodity contracts Accrued and other current liabilities 45 (6 ) 39 Commodity contracts Other noncurrent obligations 8 (3 ) 5 Total $ 160 $ (67 ) $ 93 Total liability derivatives $ 512 $ (140 ) $ 372 1. Counterparty and cash collateral amounts represent the estimated net settlement amount when applying netting and set-off rights included in master netting arrangements between the Company and its counterparties and the payable or receivable for cash collateral held or placed with the same counterparty. Assets and liabilities related to forward contracts, interest rate swaps, currency swaps, options and other conditional or exchange contracts executed with the same counterparty under a master netting arrangement are netted. Collateral accounts are netted with corresponding assets or liabilities, when applicable. The Company posted cash collateral of $26 million at December 31, 2018 ( $19 million at December 31, 2017 ). Counterparties posted cash collateral of $34 million with the Company at December 31, 2018 ( zero at December 31, 2017 ). Effect of Derivative Instruments Amount of gain (loss) recognized in OCI 1 Amount of gain (loss) recognized in income 2 In millions 2018 2017 2016 2018 2017 2016 Income Statement Classification Derivatives designated as hedging instruments: Fair value hedges: Interest rate swaps $ — $ — $ — $ — $ (2 ) $ — Interest expense and amortization of debt discount 3 Cash flow hedges: Interest rate swaps 26 2 2 (3 ) 4 6 Interest expense and amortization of debt discount Foreign currency contracts 19 (30 ) 8 (18 ) 7 (5 ) Cost of sales Foreign currency contracts (3 ) (5 ) 25 — (17 ) (13 ) Sundry income (expense) - net Commodity contracts (46 ) 37 57 (69 ) 10 (23 ) Cost of sales Net investment hedges: Foreign currency contracts 116 (73 ) 5 — — — Total derivatives designated as hedging instruments $ 112 $ (69 ) $ 97 $ (90 ) $ 2 $ (35 ) Derivatives not designated as hedging instruments: Foreign currency contracts $ — $ — $ — $ 101 $ (289 ) $ (180 ) Sundry income (expense) - net Commodity contracts — — — (12 ) (9 ) 6 Cost of sales Total derivatives not designated as hedging instruments $ — $ — $ — $ 89 $ (298 ) $ (174 ) Total derivatives $ 112 $ (69 ) $ 97 $ (1 ) $ (296 ) $ (209 ) 1. OCI is defined as other comprehensive income (loss). 2. Pretax amounts. 3. Gain (loss) recognized in income of derivatives is offset by gain (loss) recognized in income of the hedged item. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair Value Measurements on a Recurring Basis The following table summarizes the bases used to measure certain assets and liabilities at fair value on a recurring basis: Basis of Fair Value Measurements on a Recurring Basis Dec 31, 2018 Dec 31, 2017 In millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets at fair value: Cash equivalents 1 $ — $ 566 $ — $ 566 $ — $ 2,280 $ — $ 2,280 Marketable securities — 100 — 100 — 4 — 4 Interests in trade accounts receivable conduits 2 — — — — — — 677 677 Equity securities 3 16 — — 16 88 52 — 140 Debt securities: 3 Government debt 4 — 700 — 700 — 639 — 639 Corporate bonds — 983 — 983 — 733 — 733 Derivatives relating to: 5 Foreign currency — 226 — 226 — 126 — 126 Commodities 17 93 — 110 47 100 — 147 Total assets at fair value $ 33 $ 2,668 $ — $ 2,701 $ 135 $ 3,934 $ 677 $ 4,746 Liabilities at fair value: Long-term debt including debt due within one year 6 $ — $ 20,212 $ — $ 20,212 $ — $ 22,603 $ — $ 22,603 Derivatives relating to: 5 Interest rates — 64 — 64 — 4 — 4 Foreign currency — 149 — 149 — 216 — 216 Commodities 23 189 — 212 31 261 — 292 Total liabilities at fair value $ 23 $ 20,614 $ — $ 20,637 $ 31 $ 23,084 $ — $ 23,115 1. Treasury bills, time deposits, and money market funds included in "Cash and cash equivalents" in the consolidated balance sheets and held at amortized cost, which approximates fair value. 2. Included in "Accounts and notes receivable – Other" in the consolidated balance sheets. See Note 16 for additional information on transfers of financial assets. 3. The Company’s investments in debt securities, which are primarily available-for-sale, and equity securities are included in “Other investments” in the consolidated balance sheets. 4. U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. 5. See Note 23 for the classification of derivatives in the consolidated balance sheets. 6. See Note 23 for information on fair value measurements of long-term debt. For assets and liabilities classified as Level 1 measurements (measured using quoted prices in active markets), total fair value is either the price of the most recent trade at the time of the market close or the official close price, as defined by the exchange on which the asset is most actively traded on the last trading day of the period, multiplied by the number of units held without consideration of transaction costs. 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. For derivative assets and liabilities, standard industry models are used to calculate the fair value of the various financial instruments based on significant observable market inputs, such as foreign exchange rates, commodity prices, swap rates, interest rates and implied volatilities obtained from various market sources. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance/quality checks. For all other assets and liabilities for which observable inputs are used, fair value is derived through the use of fair value models, such as a discounted cash flow model or other standard pricing models. See Note 23 for further information on the types of instruments used by the Company for risk management. There were no transfers between Levels 1 and 2 in the years ended December 31, 2018 and 2017 . For assets classified as Level 3 measurements, the fair value is based on significant unobservable inputs including assumptions where there is little, if any, market activity. The fair value of the Company’s interests held in trade accounts receivable conduits is determined by calculating the expected amount of cash to be received using the key input of anticipated credit losses in the portfolio of receivables sold that have not yet been collected. Given the short-term nature of the underlying receivables, discount rate and prepayments are not factors in determining the fair value of the interests. See Note 16 for further information on assets classified as Level 3 measurements. For equity securities calculated at net asset value per share (or its equivalent), the Company had $120 million in private market securities and $29 million in real estate at December 31, 2018 . There are no redemption restrictions and the underfunded commitments on these investments were $89 million at December 31, 2018 . The following table summarizes the changes in fair value measurements using Level 3 inputs for the years ended December 31, 2018 and 2017 : Fair Value Measurements Using Level 3 Inputs for Interests Held in Trade Accounts Receivable Conduits 1 2018 2017 In millions Balance at Jan 1 $ 677 $ 1,237 Gain (loss) included in earnings 2 3 (8 ) Purchases 3 — 8,910 Settlements 3, 4 (680 ) (9,462 ) Balance at Dec 31 $ — $ 677 1. Included in "Accounts and notes receivable – Other" in the consolidated balance sheets. 2. Included in "Selling, general and administrative expenses" in the consolidated statements of income. 3. Presented in accordance with ASU 2016-15. See Note 2 for additional information. In connection with the review and implementation of ASU 2016-15, the Company also changed the prior year value of “Purchases” and "Settlements" due to additional interpretive guidance of the required method for calculating the cash received from beneficial interests in the conduits, including additional guidance from the SEC's Office of the Chief Accountant issued in the third quarter of 2018 that indicated an entity must evaluate daily transaction activity to calculate the value of cash received from beneficial interests in conduits. 4. Includes noncash transactions of $23 million for the year ended December 31, 2018 . Fair Value Measurements on a Nonrecurring Basis The following table summarizes the bases used to measure certain assets at fair value on a nonrecurring basis in the consolidated balance sheets in 2018 , 2017 and 2016 : Basis of Fair Value Measurements on a Nonrecurring Basis at Dec 31 (Level 1) (Level 3) Total Losses In millions 2018 Assets at fair value: Long-lived assets and other assets $ — $ — $ (67 ) 2017 Assets at fair value: Long-lived assets, intangible assets, other assets and equity method investments $ — $ 61 $ (955 ) Goodwill $ — $ — $ (1,491 ) 2016 Assets at fair value: Long-lived assets, other assets and equity method investments $ 46 $ — $ (296 ) 2018 Fair Value Measurements on a Nonrecurring Basis The Company has or will shut down a number of manufacturing and other non-manufacturing facilities and corporate facilities around the world as part of its restructuring programs. In 2018, the manufacturing facilities and related assets and corporate facilities associated with these programs were written down to zero. The impairment charges related to the restructuring programs, totaling $33 million , were included in "Restructuring, goodwill impairment and asset related charges - net" in the consolidated statements of income. See Note 8 for additional information on the Company's restructuring activities. In 2018, the Company recognized an additional pretax impairment charge of $34 million related primarily to capital additions made to the biopolymers manufacturing facility in Santa Vitoria, Minas Gerais, Brazil, that was impaired in 2017. The assets were written down to zero in 2018. The impairment charge was included in “Restructuring, goodwill impairment and asset related charges - net” in the consolidated statements of income. See Note 8 for additional information on the Company's restructuring activities. 2017 Fair Value Measurements on a Nonrecurring Basis The Company has or will shut down a number of manufacturing, R&D and corporate facilities around the world as part of the Synergy Program. The manufacturing facilities and related assets (including intangible assets), corporate facilities and data centers associated with this plan were written down to zero in the fourth quarter of 2017. The impairment charges related to the Synergy Program, totaling $87 million , were included in "Restructuring, goodwill impairment and asset related charges - net" in the consolidated statements of income. See Note 8 for additional information on the Company's restructuring activities. In the fourth quarter of 2017, the Company recognized a $622 million pretax impairment charge related to a biopolymers manufacturing facility in Santa Vitoria, Minas Gerais, Brazil. The Company determined it would not pursue an expansion of the facility’s ethanol mill into downstream derivative products, primarily as a result of cheaper ethane-based production as well as the Company’s new assets coming online on the U.S. Gulf Coast which can be used to meet growing market demands in Brazil. As a result of this decision, cash flow analysis indicated the carrying amount of the impacted assets was not recoverable and the assets were written down to zero in the fourth quarter of 2017. The impairment charge was included in “Restructuring, goodwill impairment and asset related charges - net” in the consolidated statements of income. See Notes 8 and 25 for additional information. The Company also recognized other pretax impairment charges of $246 million in the fourth quarter of 2017, including charges related to manufacturing assets of $159 million , an equity method investment of $81 million and other assets of $6 million . The assets, classified as Level 3 measurements, were valued at $61 million using unobservable inputs, including assumptions a market participant would use to measure the fair value of the group of assets, which included projected cash flows. The impairment charges were included in "Restructuring, goodwill impairment and asset related charges - net" in the consolidated statements of income. See Notes 8 and 25 for additional information. In the fourth quarter of 2017, the Company performed its annual goodwill impairment testing utilizing a discounted cash flow methodology as its valuation technique. As a result, the Company determined the fair value of the Coatings & Performance Monomers reporting unit was lower than its carrying amount and recorded an impairment charge of $1,491 million , included in “Restructuring, goodwill impairment and asset related charges - net” in the consolidated statements of income and related to Performance Materials & Coatings. See Note 15 for additional information on the impairment charge. 2016 Fair Value Measurements on a Nonrecurring Basis As part of the 2016 restructuring plan, the Company shut down a number of manufacturing and corporate facilities. The manufacturing facilities and related assets, corporate facilities and data centers associated with this plan were written down to zero in the second quarter of 2016. The Company also rationalized its aircraft fleet in the second quarter of 2016. Certain aircraft, classified as a Level 3 measurement, were considered held for sale and written down to fair value, using unobservable inputs, including assumptions a market participant would use to measure the fair value of the aircraft. The aircraft were subsequently sold in the second half of 2016. The impairment charges related to the 2016 restructuring plan, totaling $153 million , were included in "Restructuring, goodwill impairment and asset related charges - net" in the consolidated statements of income. See Note 8 for additional information on the Company's restructuring activities. The Company recognized an impairment charge of $143 million in the fourth quarter of 2016, related to its equity interest in AFSI. This investment, classified as a Level 1 measurement, was written down to $46 million using quoted prices in an active market. The impairment charge was included in “Restructuring, goodwill impairment and asset related charges - net" in the consolidated statements of income. See Notes 8 and 14 for additional information. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2018 | |
VARIABLE INTEREST ENTITIES [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES Consolidated Variable Interest Entities ("VIEs") The Company holds a variable interest in the following joint ventures or entities for which it is the primary beneficiary. Asia Pacific joint ventures The Company has variable interests in three joint ventures that own and operate manufacturing and logistics facilities, which produce chemicals and provide services in Asia Pacific. The Company's variable interests in these joint ventures relate to arrangements between the joint ventures and the Company, involving the majority of the output on take-or-pay terms with pricing ensuring a guaranteed return to the joint ventures. Ethylene storage joint venture The Company has variable interests in a joint venture that provides ethylene storage in Alberta, Canada. The Company's variable interests relate to arrangements involving a majority of the joint venture's storage capacity on take-or-pay terms with pricing ensuring a guaranteed return to the joint venture; and favorably priced leases provided to the joint venture. The Company provides the joint venture with operation and maintenance services and utilities. Ethanol production and cogeneration in Brazil The Company held a variable interest in a joint venture located in Brazil that produces ethanol from sugarcane. In August 2015, the partner exercised an equity option which required the Company to purchase their equity interest. On March 31, 2016, the partner's equity investment transferred to the Company. On July 11, 2016, the Company paid $202 million to the former partner, which was classified as "Purchases of noncontrolling interests" in the consolidated statements of cash flows. This former joint venture is now 100 percent owned by the Company. The Company continues to hold variable interests in a related entity that owns a cogeneration facility. The Company's variable interests are the result of a tolling arrangement where it provides fuel to the entity and purchases a majority of the cogeneration facility’s output on terms that ensure a return to the entity’s equity holders. Assets and Liabilities of Consolidated VIEs The Company's consolidated financial statements include the assets, liabilities and results of operations of VIEs for which the Company is the primary beneficiary. The other equity holders’ interests are reflected in "Net income attributable to noncontrolling interests" in the consolidated statements of income and "Noncontrolling interests" in the consolidated balance sheets. The following table summarizes the carrying amounts of these entities’ assets and liabilities included in the Company’s consolidated balance sheets at December 31, 2018 and 2017 : Assets and Liabilities of Consolidated VIEs at Dec 31 In millions 2018 2017 Cash and cash equivalents $ 71 $ 86 Other current assets 101 120 Net property 683 855 Other noncurrent assets 14 13 Total assets 1 $ 869 $ 1,074 Current liabilities $ 307 $ 268 Long-term debt 75 249 Other noncurrent obligations 14 21 Total liabilities 2 $ 396 $ 538 1. All assets were restricted at December 31, 2018 and 2017 . 2. All liabilities were nonrecourse at December 31, 2018 and 2017 . In addition, the Company holds a variable interest in an entity created to monetize accounts receivable of select European entities. The Company is the primary beneficiary of this entity as a result of holding subordinated notes while maintaining servicing responsibilities for the accounts receivable. The carrying amounts of assets and liabilities included in the Company’s consolidated balance sheets pertaining to this entity were current assets of zero ( zero restricted) at December 31, 2018 ( $671 million , zero restricted, at December 31, 2017 ) and current liabilities of zero ( zero nonrecourse) at December 31, 2018 ( less than $1 million , zero nonrecourse, at December 31, 2017 ). Amounts presented in the consolidated balance sheets and the table above as restricted assets or nonrecourse obligations relating to consolidated VIEs at December 31, 2018 and 2017 are adjusted for intercompany eliminations and parental guarantees. Nonconsolidated VIEs The Company holds a variable interest in the following entities for which the Company is not the primary beneficiary. Silicon joint ventures As a result of the Dow Silicones ownership restructure, the Company holds minority voting interests in certain joint ventures that produce silicon inputs for the Company. These joint ventures operate under supply agreements that sell inventory to the equity owners using pricing mechanisms that guarantee a return, therefore shielding the joint ventures from the obligation to absorb expected losses. As a result of the pricing mechanisms of these agreements, these entities are determined to be VIEs. The Company is not the primary beneficiary, as it does not hold the power to direct the activities that most significantly impact the economic performance of these entities; therefore, the entities are accounted for under the equity method of accounting. The Company's maximum exposure to loss as a result of its involvement with these variable interest entities is determined to be the carrying value of the investment in these entities. At December 31, 2018 , the Company's investment in these joint ventures was $100 million ( $103 million at December 31, 2017 ), classified as "Investment in nonconsolidated affiliates" in the consolidated balance sheets, representing the Company's maximum exposure to loss. AFSI The Company holds a variable interest in AFSI, a company that produces and sells proprietary technologies for the horticultural market. The variable interest in AFSI relates to a tax receivable agreement that entitles the Company to additional consideration in the form of tax savings, which is contingent on the operations and earnings of AFSI. The Company is not the primary beneficiary, as it is a minority shareholder in AFSI and AFSI is governed by a board of directors, the composition of which is mandated by AFSI's corporate governance requirements that a majority of the directors be independent. On April 4, 2017, the Company entered into a stock purchase agreement to purchase up to 5,070,358 shares of AFSI's common stock, which represented approximately 10 percent of AFSI's common stock outstanding at signing of the agreement, subject to certain terms and conditions. On November 19, 2018, the stock purchase agreement concluded. The Company's investment in AFSI was $48 million at December 31, 2018 ( $51 million at December 31, 2017 ), classified as "Investment in nonconsolidated affiliates" in the consolidated balance sheets. In the fourth quarter of 2016, as a result of a decline in the market value of AFSI, the Company recognized a $143 million pretax impairment charge related to its equity interest in AFSI, recorded in "Restructuring, goodwill impairment and asset related charges - net" in the consolidated statements of income and related to the Corporate segment (see Notes 14 and 24 for further information). At December 31, 2018 , the Company's receivable with AFSI related to the tax receivable agreement was $8 million ( $4 million at December 31, 2017 ), classified as "Accounts and notes receivable - Other" in the consolidated balance sheets. The Company's maximum exposure to loss was $56 million at December 31, 2018 ( $55 million at December 31, 2017 ). Crude acrylic acid joint venture The Company held a variable interest in a joint venture that manufactured crude acrylic acid in the United States and Germany on behalf of the Company and the other joint venture partner. The variable interest related to a cost-plus arrangement between the joint venture and each joint venture partner. The Company was not the primary beneficiary, as a majority of the joint venture’s output was committed to the other joint venture partner; therefore, the entity was accounted for under the equity method of accounting. In the fourth quarter of 2017, the joint venture was dissolved by mutual agreement with return of the originally contributed assets to the partners. The carrying value of the Company 's investment prior to the dissolution was $168 million , which was also determined to be fair value, therefore, no gain or loss was recognized as a result of the transaction. The fair value of assets recognized included $47 million of cash, $67 million of other assets and $48 million of goodwill (net of $6 million settlement of an affiliate's pre-existing obligation) . |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS From the Merger date through March 31, 2019, the Company reported transactions with DowDuPont and DuPont and its affiliates as related party transactions. DowDuPont TDCC committed to fund a portion of DowDuPont's share repurchases, dividends paid to common stockholders and certain governance expenses. Funding was accomplished through intercompany loans. On a quarterly basis, TDCC's Board reviewed and determined a dividend distribution to DowDuPont to settle the intercompany loans. The dividend distribution considered the level of TDCC’s earnings and cash flows and the outstanding intercompany loan balances. In 2018 , TDCC declared and paid dividends to DowDuPont of $3,711 million ( $1,056 million in 2017 ). At December 31, 2018 , TDCC's outstanding intercompany loan balance was insignificant (insignificant at December 31, 2017 ). In addition, at December 31, 2018 , TDCC had a receivable related to a tax sharing agreement with DowDuPont of $89 million ( $354 million at December 31, 2017 ), included in "Accounts and notes receivable - Other" in the consolidated balance sheets. DuPont and its Affiliates TDCC sells to and procures from DuPont and its affiliates certain raw materials that are consumed in each company's manufacturing process. The following table presents amounts due to or due from DuPont and its affiliates at December 31, 2018: Balances Due To or Due From DuPont and its Affiliates Dec 31, 2018 Dec 31, 2017 In millions Accounts and notes receivable - Other $ 89 $ 12 Accounts payable - Other $ 19 $ 11 The following table presents revenue earned and expenses incurred related to transactions with DuPont and its affiliates: Sales to DuPont and its Affiliates 2018 In millions Net sales $ 55 Cost of sales $ 42 Purchases from DuPont and its affiliates were insignificant for 2018 and the period September 1, 2017 through December 31, 2017. |
SEGMENTS AND GEOGRAPHIC REGIONS
SEGMENTS AND GEOGRAPHIC REGIONS (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segments and Geographic Regions [Text Block] | SEGMENTS AND GEOGRAPHIC REGIONS Dow combines one of the broadest technology sets in the industry with asset integration, focused innovation and global scale to achieve profitable growth and become the most innovative, customer centric, inclusive and sustainable materials science company. Dow’s portfolio of performance materials, industrial intermediates and plastics businesses delivers a broad range of differentiated science-based products and solutions for our customers in high-growth segments, such as packaging, infrastructure and consumer care. On a continuing operations basis, Dow operates 113 manufacturing sites in 31 countries and employs approximately 37,600 people. Effective with the Merger, TDCC's business activities were components of DowDuPont's business operations and were reported as a single operating segment. Following the separation from DowDuPont, the Company changed the manner in which its business activities were managed. The Company's portfolio now includes six global businesses which are organized into the following operating segments: Performance Materials & Coatings, Industrial Intermediates & Infrastructure and Packaging & Specialty Plastics. Corporate contains the reconciliation between the totals for the operating segments and the Company's totals. The Company did not aggregate any operating segments when determining its reportable segments. Following the separation from DowDuPont, the Company changed its practice of transferring ethylene to its downstream derivative businesses at cost to transferring ethylene at market prices. The Company also changed certain of its Corporate segment allocation practices including costs previously assigned to AgCo and SpecCo, which are now allocated to the operating segments. These changes have been consistently applied to all periods presented. Dow reported geographic information for the following regions: U.S. & Canada, Asia Pacific, Latin America, and EMEAI. As a result of the separation from DowDuPont, the Company changed the geographic alignment for the country of India to be reflected in EMEAI (previously reported in Asia Pacific). Dow’s measure of profit/loss for segment reporting purposes is pro forma Operating EBIT (for the twelve months ended December 31, 2018 and 2017) and Operating EBIT (for the twelve months ended December 31, 2016) as this is the manner in which the Company's chief operating decision maker ("CODM") assesses performance and allocates resources. The Company defines pro forma Operating EBIT as earnings (i.e., "Income from continuing operations before income taxes") before interest, plus pro forma adjustments, excluding the impact of significant items. The Company defines Operating EBIT as earnings (i.e., "Income from continuing operations before income taxes") before interest, excluding the impact of significant items. Pro forma Operating EBIT and Operating EBIT by segment include all operating items relating to the businesses; items that principally apply to Dow as a whole are assigned to Corporate. These measures have been reflected retrospectively for all periods presented, and reconciliations of these measures are provided at the end of this footnote. The Company also presents pro forma net sales for 2018 and 2017 in this footnote as it is included in management's measure of segment performance and is regularly reviewed by the CODM. Pro forma net sales includes the impact of ECP from January 1, 2017 through August 31, 2017, as well as the impact of various manufacturing, supply and service related agreements entered into with DuPont and Corteva in connection with the separation which provide for different pricing than the historical intercompany and intracompany pricing practices of TDCC and DuPont. Corporate Profile Dow conducts its worldwide operations through global businesses which are reflected in the following reportable segments: Performance Materials & Coatings Performance Materials & Coatings includes industry-leading franchises that deliver a wide array of solutions into consumer and infrastructure end-markets. The segment consists of two global businesses: Coatings & Performance Monomers and Consumer Solutions. These businesses primarily utilize the Company's acrylics-, cellulosics- and silicone-based technology platforms to serve the needs of the architectural and industrial coatings, home care and personal care end-markets. Both businesses employ materials science capabilities, global reach and unique products and technology to combine chemistry platforms to deliver differentiated offerings to customers. Coatings & Performance Monomers Coatings & Performance Monomers consists of two businesses: Coating Materials and Performance Monomers. The Coating Materials business makes critical ingredients and additives that help advance the performance of paints and coatings. The business offers innovative and sustainable products to accelerate paint and coatings performance across diverse market segments, including architectural paints and coatings, as well as industrial coatings applications used in maintenance and protective industries, wood, metal packaging, traffic markings, thermal paper and leather. These products enhance coatings by improving hiding and coverage characteristics, enhancing durability against nature and the elements, reducing volatile organic compounds (“VOC”) content, reducing maintenance and improving ease of application. The Performance Monomers business manufactures critical building blocks based on acrylics needed for the production of coatings, textiles, and home and personal care products. Consumer Solutions Consumer Solutions consists of three businesses: Performance Silicones; Silicone Feedstocks & Intermediates; and Home & Personal Care. Performance Silicones uses innovative, versatile silicone-based technology to provide ingredients and solutions to customers in high performance building, consumer goods, elastomeric applications and the pressure sensitive adhesives industry that help them meet modern consumer preferences in attributes such as texture, feel, scent, durability and consistency. The Company’s wide array of silicone-based products and solutions enables customers to: increase the appeal of their products; extend shelf life; improve performance of products under a wider range of conditions; and provide a more sustainable offering. Silicone Feedstocks & Intermediates provides standalone silicone materials that are used as intermediates in a wide range of applications including adhesion promoters, coupling agents, crosslinking agents, dispersing agents and surface modifiers. The Home & Personal Care business collaborates closely with global and regional brand owners to deliver innovative solutions for creating new and unrivaled consumer benefits and experiences in cleaning, laundry and skin and hair care applications, among others. Industrial Intermediates & Infrastructure Industrial Intermediates & Infrastructure consists of two customer-centric global businesses - Industrial Solutions and Polyurethanes & Construction Chemicals - that develop important intermediate chemicals that are essential to manufacturing processes, as well as downstream, customized materials and formulations that use advanced development technologies. These businesses primarily produce and market ethylene oxide and propylene oxide derivatives that are aligned to market segments as diverse as appliances, coatings, infrastructure and oil and gas. The global scale and reach of these businesses, world-class technology and R&D capabilities and materials science expertise enable the Company to be a premier solutions provider offering customers value-add sustainable solutions to enhance comfort, energy efficiency, product effectiveness and durability across a wide range of home comfort and appliances, building and construction, adhesives and lubricant applications, among others. Industrial Solutions Industrial Solutions is the world’s largest producer of purified ethylene oxide. It provides a broad portfolio of solutions that address world needs by enabling and improving the manufacture of consumer and industrial goods and services. The business’ solutions minimize friction and heat in mechanical processes, manage the oil and water interface, deliver ingredients for maximum effectiveness, facilitate dissolvability, enable product identification and provide the foundational building blocks for the development of chemical technologies. The business supports manufacturers associated with a large variety of end-markets, notably better crop protection offerings in agriculture, coatings, detergents and cleaners, solvents for electronics processing, inks and textiles. Polyurethanes & Construction Chemicals Polyurethanes & Construction Chemicals consists of three businesses: Polyurethanes, Chlor-Alkali & Vinyl (“CAV”) and Construction Chemicals (“DCC”). The Polyurethanes business is the world’s largest producer of propylene oxide, propylene glycol and polyether polyols, and a leading producer of aromatic isocyanates and fully formulated polyurethane systems for rigid, semi-rigid and flexible foams, and coatings, adhesives, sealants, elastomers and composites that serve energy efficiency, consumer comfort, industrial and enhanced mobility market sectors. The CAV business provides cost-advantaged chlorine and caustic soda supply and markets caustic soda, a valuable co-product of the chlor-alkali manufacturing process, and ethylene dichloride and vinyl chloride monomer. The DCC business provides cellulose ethers, redispersible latex powders, silicones and acrylic emulsions used as key building blocks for differentiated building and construction materials across many market segments and applications ranging from roofing and flooring to gypsum-, cement-, concrete- or dispersion-based building materials. Joint Ventures The Industrial Intermediates & Infrastructure segment includes a portion of the Company's share of the results of the following joint ventures: • EQUATE - a Kuwait-based company that manufactures ethylene, polyethylene and ethylene glycol, and manufactures and markets monoethylene glycol, diethylene glycol and polyethylene terephthalate resins; owned 42.5 percent by the Company. • The Kuwait Olefins Company K.S.C.C. (“TKOC”) - a Kuwait-based company that manufactures ethylene and ethylene glycol; owned 42.5 percent by the Company. • Map Ta Phut - a Thailand-based company that manufactures propylene and ethylene; the Company has an effective ownership of 32.77 percent (of which 20.27 percent is owned directly by the Company and aligned with the Industrial Intermediates & Infrastructure segment and 12.5 percent is owned indirectly through the Company’s equity interest in Siam Polyethylene Company Limited, an entity that is part of The SCG-Dow Group and aligned with the Packaging & Specialty Plastics segment). • Sadara - a Saudi Arabian company that manufactures chlorine, ethylene, propylene and aromatics for internal consumption and manufactures and sells polyethylene, ethylene oxide and propylene oxide derivative products, and isocyanates; owned 35 percent by the Company. Packaging & Specialty Plastics Packaging & Specialty Plastics is a world leader in plastics and consists of two highly integrated global businesses: Hydrocarbons & Energy and Packaging and Specialty Plastics. The segment employs the industry’s broadest polyolefin product portfolio, supported by the Company’s proprietary catalyst and manufacturing process technologies, to work at the customer’s design table throughout the value chain to deliver more reliable and durable, higher performing, and more sustainable plastics to customers in food and specialty packaging; industrial and consumer packaging; health and hygiene; caps, closures and pipe applications; consumer durables; and infrastructure. The Company’s unique advantages compared with its competitors include: the Company’s extensive low-cost feedstock positions around the world; unparalleled scale, footprint, and market reach, with world-class manufacturing sites in every geography; deep customer and brand owner understanding; and market-driven application development and technical support. The segment remains agile and adaptive by participating in the entire ethylene-to-polyethylene chain integration, enabling the Company to manage market swings, and therefore optimize returns while reducing long-term earnings volatility. The Company’s unrivaled value chain ownership, combined with its Pack Studio locations in every geography, which help customers and brand owners deliver faster and more efficient packaging product commercialization through a global network of laboratories, technical experts and testing equipment, together differentiate the Company from its competitors. Hydrocarbons & Energy Hydrocarbons & Energy is the largest global producer of ethylene, an internal feedstock that is consumed primarily within the Packaging & Specialty Plastics segment. In addition to ethylene, the business is a leading producer of propylene and aromatics products that are used to manufacture materials that consumers use every day. The business also produces and procures the power and feedstocks used by the Company’s manufacturing sites. Packaging and Specialty Plastics Packaging and Specialty Plastics serves growing, high-value sectors using world-class technology, broad existing product lines, and a rich product pipeline that creates competitive advantages for the entire packaging value chain. The business is also a leader in polyolefin elastomers and ethylene propylene diene monomer ("EPDM") rubber serving automotive, consumer, wire and cable and construction markets. Market growth is expected to be driven by major shifts in population demographics; improving socioeconomic status in emerging geographies; consumer and brand owner demand for increased functionality; global efforts to reduce food waste; growth in telecommunications networks; global development of electrical transmission and distribution infrastructure; and renewable energy applications. Joint Ventures This segment also includes the results of the following joint ventures of the Company, as well as a portion of the results of EQUATE, TKOC, Map Ta Phut and Sadara: • The Kuwait Styrene Company K.S.C.C. - a Kuwait-based company that manufactures styrene monomer; owned 42.5 percent by the Company. • The SCG-Dow Group - a group of Thailand-based companies (consisting of Siam Polyethylene Company Limited; Siam Polystyrene Company Limited; Siam Styrene Monomer Co., Ltd.; and Siam Synthetic Latex Company Limited) that manufacture polyethylene, polystyrene, styrene, latex and specialty elastomers; owned 50 percent by the Company. Corporate Corporate includes certain enterprise and governance activities (including insurance operations, environmental operations, etc.); non-business aligned joint ventures; gains and losses on sales of financial assets; non-business aligned litigation expenses; and discontinued or non-aligned businesses. Sales are attributed to geographic regions based on customer location; long-lived assets are attributed to geographic regions based on asset location. Geographic Region Information United States EMEAI Rest of World Total In millions 2018 Sales to external customers $ 16,613 $ 17,406 $ 15,585 $ 49,604 Long-lived assets $ 14,750 $ 2,657 $ 4,011 $ 21,418 2017 Sales to external customers $ 15,316 $ 15,226 $ 13,188 $ 43,730 Long-lived assets $ 14,771 $ 2,547 $ 4,266 $ 21,584 2016 Sales to external customers $ 12,911 $ 12,238 $ 11,115 $ 36,264 Long-lived assets $ 12,906 $ 2,263 $ 4,992 $ 20,161 Segment Information Perf. Materials & Coatings Ind. Interm. & Infrast. Pack. & Spec. Plastics Corp. Total In millions 2018 Net sales $ 9,677 $ 15,447 $ 24,195 $ 285 $ 49,604 Pro forma net sales 9,865 15,465 24,237 285 49,852 Restructuring and asset related charges - net 1 21 11 46 143 221 Equity in earnings (losses) of nonconsolidated affiliates 4 284 287 (20 ) 555 Pro forma Operating EBIT 2 1,246 1,767 3,593 (370 ) 6,236 Depreciation and amortization 888 607 1,385 29 2,909 Total assets 3 16,050 14,092 30,279 3,378 63,799 Investments in nonconsolidated affiliates 99 1,850 1,278 93 3,320 Capital expenditures 427 433 1,231 — 2,091 2017 Net sales $ 8,892 $ 12,951 $ 21,504 $ 383 $ 43,730 Pro forma net sales 8,892 12,951 22,546 383 44,772 Restructuring, goodwill impairment and asset related charges - net 1 1,578 17 716 428 2,739 Equity in earnings (losses) of nonconsolidated affiliates 40 172 190 (8 ) 394 Pro forma Operating EBIT 2 817 1,470 3,712 (422 ) 5,577 Depreciation and amortization 885 572 1,055 34 2,546 Total assets 3 17,483 14,115 30,633 4,342 66,573 Investments in nonconsolidated affiliates 103 1,700 1,184 120 3,107 Capital expenditures 463 310 2,034 — 2,807 2016 Net sales $ 6,476 $ 11,100 $ 18,404 $ 284 $ 36,264 Restructuring and asset related charges - net 1 42 83 10 444 579 Asbestos-related charge 4 — — — 1,113 1,113 Equity in earnings (losses) of nonconsolidated affiliates 97 (18 ) 137 (29 ) 187 Operating EBIT 5 260 743 3,855 (354 ) 4,504 Depreciation and amortization 678 620 903 24 2,225 Total assets 3 17,731 13,739 23,051 5,837 60,358 Investments in nonconsolidated affiliates 280 1,632 853 209 2,974 Capital expenditures 435 262 2,792 — 3,489 1. See Note 8 for information regarding the Company's restructuring programs, goodwill impairment and other asset related charges. 2. A reconciliation of "Income (loss) from continuing operations, net of tax" to pro forma Operating EBIT is provided below. 3. Excludes assets of discontinued operations of $19,900 million , $19,279 million and $19,153 million for 2018, 2017 and 2016, respectively. 4. See Note 18 for information regarding the asbestos-related charge. 5. A reconciliation of "Income from continuing operations, net of tax" to Operating EBIT is provided on the following page. Reconciliation of "Income (loss) from continuing operations, net of tax" to Pro Forma Operating EBIT 2018 2017 In millions Income (loss) from continuing operations, net of tax $ 2,940 $ (1,287 ) + Provision for income taxes on continuing operations 809 1,524 Income from continuing operations before income taxes $ 3,749 $ 237 - Interest income 82 66 + Interest expense and amortization of debt discount 1,063 914 + Pro forma adjustments 1 180 1,120 - Significant items (1,326 ) (3,372 ) Pro forma Operating EBIT $ 6,236 $ 5,577 1. Pro forma adjustments include: (1) the margin impact of various manufacturing, supply and service related agreements entered into with DowDuPont and Corteva in connection with the separation which provide for different pricing than the historical intercompany and intracompany pricing practices of TDCC and DuPont (including for 2018 only), (2) the inclusion of ECP for the period of January 1, 2017 through August 31, 2017, (3) the removal of the amortization of ECP's inventory step-up recognized in connection with the Merger (4) the elimination of the impact of events directly attributable to the Merger, internal reorganization and business realignment, separation, distribution and other related transactions (e.g., one-time transaction costs) and (5) the elimination of the effect of a consummated divestiture agreed to with certain regulatory agencies as a condition of approval for the Merger. Reconciliation of "Income from continuing operations, net of tax" to Operating EBIT 2016 In millions Income from continuing operations, net of tax $ 1,478 + Credit for income taxes on continuing operations (218 ) Income from continuing operations before income taxes $ 1,260 - Interest income 75 + Interest expense and amortization of debt discount 827 - Significant items (2,492 ) Operating EBIT $ 4,504 The following tables summarize the pretax impact of significant items by segment that are excluded from pro forma Operating EBIT and Operating EBIT: Significant Items by Segment for 2018 Perf. Materials & Coatings Ind. Interm. & Infrast. Pack. & Spec. Plastics Corp. Total In millions Impact of Dow Silicones ownership restructure 1 $ (20 ) $ — $ — $ — $ (20 ) Integration and separation costs 2 — — — (1,074 ) (1,074 ) Restructuring and asset related charges - net 3 (21 ) (11 ) (46 ) (120 ) (198 ) Gain on divestiture 4 — 20 — — 20 Loss on early extinguishment of debt 5 — — — (54 ) (54 ) Total $ (41 ) $ 9 $ (46 ) $ (1,248 ) $ (1,326 ) 1. Includes a loss related to a post-closing adjustment related to the Dow Silicones ownership restructure. 2. Costs related to post-Merger integration and separation and distribution activities, and costs related to the Dow Silicones ownership restructure. 3. Includes Board approved restructuring plans and asset-related charges, which include other asset impairments. See Note 8 for additional information. 4. Includes a gain related to the Company's sale of its equity interest in MEGlobal. 5. The Company retired outstanding notes payable resulting in a loss on early extinguishment. See Note 17 for additional information. Significant Items by Segment for 2017 Perf. Materials & Coatings Ind. Interm. & Infrast. Pack. & Spec. Plastics Corp. Total In millions Litigation related charges, awards and adjustments 1 $ — $ — $ 137 $ — $ 137 Integration and separation costs 2 — — — (716 ) (716 ) Restructuring, goodwill impairment and asset related charges - net 3 (1,578 ) (17 ) (716 ) (431 ) (2,742 ) Gain on divestiture 4 — — — 7 7 Transaction costs and productivity actions 5 — — — (58 ) (58 ) Total $ (1,578 ) $ (17 ) $ (579 ) $ (1,198 ) $ (3,372 ) 1. Includes a gain associated with a patent infringement matter with Nova. See Note 18 for additional information. 2. Costs related to post-Merger integration, separation and distribution activities, and costs related to the Dow Silicones ownership restructure. 3. Includes Board approved restructuring plans, goodwill impairment and asset-related charges, which includes other asset impairments. See Note 8 for additional information. 4. Includes post-closing adjustments related to the split-off of the Company's chlorine value chain. 5. Includes implementation costs associated with the Company's restructuring programs and other productivity actions. Significant Items by Segment for 2016 Perf. Materials & Coatings Ind. Interm. & Infrast. Pack. & Spec. Plastics Corp. Total In millions Impact of Dow Silicones ownership restructure 1 $ 1,389 $ — $ — $ — $ 1,389 Litigation related charges, awards and adjustments 2 16 (1,235 ) — — (1,219 ) Asbestos-related charge 3 — — — (1,113 ) (1,113 ) Integration and separation costs 4 — — — (349 ) (349 ) Restructuring and asset related charges - net 5 (42 ) (83 ) (10 ) (444 ) (579 ) Loss on divestitures 6 — — — (14 ) (14 ) Environmental charges 7 — (1 ) (2 ) (292 ) (295 ) Transaction costs and productivity actions 8 — — — (195 ) (195 ) Charge for the termination of a terminal use agreement 9 — — (117 ) — (117 ) Total $ 1,363 $ (1,319 ) $ (129 ) $ (2,407 ) $ (2,492 ) 1. Includes a non-taxable gain of $1,617 million related to the Dow Silicones ownership restructure; a $213 million charge for the fair value step-up of Dow Silicones' inventories; and, a pretax loss of $15 million related to the early redemption of debt incurred by Dow Silicones. See Note 6 for additional information. 2. Includes a loss of $1,235 million related to the Company's settlement of the urethane matters class action lawsuit and the opt-out cases litigation and a gain of $16 million related to a decrease in Dow Silicones' implant liability. See Note 18 for additional information. 3. Pretax charge related to the Company's election to change its method of accounting for asbestos-related defense costs from expensing as incurred to estimating and accruing a liability. As a result of this accounting policy change, the Company recorded a pretax charge of $1,009 million for asbestos-related defense costs through the terminal date of 2049. The Company also recorded a pretax charge of $104 million to increase the asbestos-related liability for pending and future claims through the terminal date of 2049. See Note 18 for additional information. 4. Costs related to the Merger and the ownership restructure of Dow Silicones. 5. Includes the Company's restructuring activities. Also reflects a pretax charge of $143 million for a partial impairment of the Company’s investment in AFSI. See Note 8 for additional information. 6. Includes a charge of $20 million for post-closing adjustments on the divestiture of AgroFresh and a gain of $6 million for post-closing adjustments on the split-off of the chlorine value chain. 7. Pretax charge for environmental remediation activities at a number of the Company's locations, primarily resulting from the culmination of negotiations with regulators and/or final agency approval. See Note 18 for additional information. 8. Includes implementation costs associated with the Company's restructuring programs and other productivity actions. Also includes a charge of $33 million for a retained litigation matter related to the chlorine value chain. 9. Pretax charge related to the Company's termination of a terminal use agreement. |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA | SELECTED QUARTERLY FINANCIAL DATA 2018 In millions, except per share amounts (Unaudited) 1st 2nd 3rd 4th Year Net sales $ 12,237 $ 12,789 $ 12,634 $ 11,944 $ 49,604 Cost of sales $ 9,980 $ 10,540 $ 10,456 $ 10,098 $ 41,074 Gross margin $ 2,257 $ 2,249 $ 2,178 $ 1,846 $ 8,530 Restructuring, goodwill impairment and asset related charges - net 1 $ 87 $ 40 $ 48 $ 46 $ 221 Integration and separation costs $ 224 $ 262 $ 313 $ 380 $ 1,179 Income from continuing operations, net of tax $ 925 $ 810 $ 714 $ 491 $ 2,940 Income from discontinued operations net of tax $ 514 $ 554 $ 335 $ 432 $ 1,835 Net income 2 $ 1,439 $ 1,364 $ 1,049 $ 923 $ 4,775 Net income attributable to Dow Inc. and The Dow Chemical Company $ 1,404 $ 1,333 $ 1,013 $ 891 $ 4,641 Earnings per common share from continuing operations - basic 3 $ 1.21 $ 1.05 $ 0.91 $ 0.63 $ 3.80 Earnings per common share from continuing operations - diluted 3 $ 1.21 $ 1.05 $ 0.91 $ 0.63 $ 3.80 1. See Note 8 for additional information. 2. Includes tax adjustments related to The Act, enacted on December 22, 2017. See Note 10 for additional information. 3. Earnings per common share amounts relate only to Dow Inc. as TDCC common shares are not publicly traded and are all owned by Dow Inc. 2017 In millions, except per share amounts (Unaudited) 1st 2nd 3rd 4th Year Net sales $ 10,124 $ 10,554 $ 10,991 $ 12,061 $ 43,730 Cost of sales $ 8,346 $ 8,703 $ 8,979 $ 10,322 $ 36,350 Gross margin $ 1,778 $ 1,851 $ 2,012 $ 1,739 $ 7,380 Restructuring, goodwill impairment and asset related charges (credits) - net 1 $ — $ (12 ) $ 117 $ 2,634 $ 2,739 Integration and separation costs $ 109 $ 136 $ 290 $ 263 $ 798 Income (loss) from continuing operations, net of tax $ 614 $ 812 $ 505 $ (3,218 ) $ (1,287 ) Income from discontinued operations, net of tax $ 301 $ 548 $ 296 $ 737 $ 1,882 Net income (loss) 2 $ 915 $ 1,360 $ 801 $ (2,481 ) $ 595 Net income (loss) attributable to Dow Inc. and The Dow Chemical Company $ 888 $ 1,322 $ 779 $ (2,524 ) $ 465 Earnings (loss) per common share from continuing operations - basic 3 $ 0.81 $ 1.04 $ 0.64 $ (4.36 ) $ (1.88 ) Earnings (loss) per common share from continuing operations - diluted 3 $ 0.80 $ 1.03 $ 0.64 $ (4.36 ) $ (1.88 ) 1. See Note 8 for additional information. 2. See Notes 7 , 9 , 10 , 18 and 21 for additional information on items materially impacting "Net income (loss)." The fourth quarter of 2017 included: tax adjustments related to The Act, enacted on December 22, 2017, and a charge related to payment of plan obligations to certain participants of a U.S. non-qualified pension plan. The third quarter of 2017 included a gain related to the sale of the Company's EAA Business. The second quarter of 2017 included a gain related to the Nova patent infringement award. 3. Earnings per common share amounts relate only to Dow Inc. as TDCC common shares are not publicly traded and are all owned by Dow Inc. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTINGS | Schedule II - Valuation and Qualifying Accounts (In millions) For the years ended Dec 31, 2018 2017 2016 Accounts Receivable - Allowance for Doubtful Receivables Balance at beginning of year $ 59 $ 51 $ 48 Additions charged to expenses 10 23 13 Additions charged to other accounts 1 4 2 — Deductions from reserves 2 (31 ) (17 ) (10 ) Balance at end of year $ 42 $ 59 $ 51 Inventory - Obsolescence Reserve Balance at beginning of year $ 18 $ 34 $ 14 Additions charged to expenses 7 5 26 Deductions from reserves 3 (2 ) (21 ) (6 ) Balance at end of year $ 23 $ 18 $ 34 Reserves for Other Investments and Noncurrent Receivables Balance at beginning of year $ 430 $ 350 $ 487 Additions charged to expenses 4 44 83 152 Deductions from reserves 5 (14 ) (3 ) (289 ) Balance at end of year $ 460 $ 430 $ 350 Deferred Tax Assets - Valuation Allowance Balance at beginning of year $ 1,255 $ 936 $ 868 Additions charged to expenses 152 369 140 Deductions from reserves (182 ) (50 ) (72 ) Balance at end of year $ 1,225 $ 1,255 $ 936 1. Additions to allowance for doubtful accounts charged to other accounts were classified as "Accounts and notes receivable - Other" in the consolidated balance sheets. These reserves relate to the Company's sale of trade accounts receivable. Anticipated credit losses in the portfolio of receivables sold were used to fair value the Company's interests held in trade accounts receivable conduits. See Notes 16 and 24 to the Consolidated Financial Statements for further information. 2. Deductions include write-offs, recoveries, currency translation adjustment and other miscellaneous items. 3. Deductions include disposals and currency translation adjustments. 4. In 2016, additions to reserves for "Other investments and noncurrent receivables" charged to costs and expenses include $143 million related to the Company's investment in AgroFresh Solutions, Inc. See Note 8 to the Consolidated Financial Statements for further information. 5. In 2016, deductions from reserves for "Other investments and noncurrent receivables" include $237 million related to the Dow Silicones ownership restructure. See Note 6 to the Consolidated Financial Statements for further information on the Dow Silicones ownership restructure. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements of Dow were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the assets, liabilities, revenues and expenses of all majority-owned subsidiaries over which Dow exercises control and, when applicable, entities for which Dow has a controlling financial interest or is the primary beneficiary. Intercompany transactions and balances are eliminated in consolidation. Investments in nonconsolidated affiliates (20-50 percent owned companies or less than 20 percent owned companies over which significant influence is exercised) are accounted for using the equity method. Effective April 1, 2019, Dow Inc. owns all of the outstanding common shares of TDCC. TDCC is deemed the predecessor to Dow Inc. and the historical results of TDCC are deemed the historical results of Dow Inc. for all periods presented. As a result of the relationship between Dow Inc. and TDCC, the companies are filing a combined report for this Annual Report on Form 10-K. As of the effective date and time of the distribution, DowDuPont does not beneficially own any equity interest in Dow and no longer consolidates Dow and its consolidated subsidiaries into its financial results. The consolidated financial results of Dow for all periods presented reflect the distribution of TDCC’s agricultural sciences business (“AgCo”) and specialty products business (“SpecCo”) as discontinued operations, as well as the receipt of DuPont’s ethylene and ethylene copolymers businesses (other than its ethylene acrylic elastomers business) (“ECP”) as a common control transaction from the closing of the Merger on August 31, 2017. See Notes 3 and 4 and Dow Inc.'s Amendment No. 4 to the Registration Statement on Form 10 filed with the U.S. Securities and Exchange Commission ("SEC") on March 8, 2019 for additional information. Effective with the Merger, the Company's business activities were components of DowDuPont's business operations and therefore, were reported as a single operating segment. Following the separation from DowDuPont, the Company changed the manner in which its business activities were managed. The Company's portfolio now includes six global businesses which are organized into the following operating segments: Performance Materials & Coatings, Industrial Intermediates & Infrastructure and Packaging & Specialty Plastics. Corporate contains the reconciliation between the totals for the operating segments and the Company's totals. From the Merger date through the separation, transactions between DowDuPont, TDCC and DuPont and their affiliates were treated as related party transactions. Transactions between TDCC and DuPont primarily consisted of the sale and procurement of certain feedstocks, energy and raw materials that were consumed in each company's manufacturing process. See Note 26 for additional information. Throughout this Current Report on Form 8-K, unless otherwise indicated, amounts and activity are presented on a continuing operations basis. Except as otherwise indicated by the context, the terms "Union Carbide" means Union Carbide Corporation, a wholly owned subsidiary of the Company, and "Dow Silicones" means Dow Silicones Corporation (formerly known as Dow Corning Corporation, which changed its name effective as of February 1, 2018), a wholly owned subsidiary of the Company. |
Use of Estimates in Financial Statement Preparation | Use of Estimates in Financial Statement Preparation The preparation of financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company’s consolidated financial statements include amounts that are based on management’s best estimates and judgments. Actual results could differ from those estimates. |
Asbestos-Related Matters | Asbestos-Related Matters Accruals for asbestos-related matters, including defense and processing costs, are recorded based on an analysis of claim and resolution activity, defense spending, and pending and future claims. These accruals are assessed at each balance sheet date to determine if the asbestos-related liability remains appropriate. Accruals for asbestos-related matters are included in the consolidated balance sheets in “Accrued and other current liabilities” and “Asbestos-related liabilities - noncurrent.” See Note 18 for additional information. |
Legal Costs | Legal Costs The Company expenses legal costs as incurred, with the exception of defense and processing costs associated with asbestos-related matters. |
Foreign Currency Translation | Foreign Currency Translation The local currency has been primarily used as the functional currency throughout the world. Translation gains and losses of those operations that use local currency as the functional currency are included in the consolidated balance sheets in "Accumulated other comprehensive loss" ("AOCL"). For certain subsidiaries, the U.S. dollar is used as the functional currency. This occurs when the subsidiary operates in an economic environment where the products produced and sold are tied to U.S. dollar-denominated markets, or when the foreign subsidiary operates in a hyper-inflationary environment. Where the U.S. dollar is used as the functional currency, foreign currency translation gains and losses are reflected in income. |
Environmental Matters | 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. These accruals are adjusted periodically as assessment and remediation efforts progress or as additional technical or legal information becomes available. Accruals for environmental liabilities are included in the consolidated balance sheets in “Accrued and other current liabilities” and “Other noncurrent obligations” at undiscounted amounts. Accruals for related insurance or other third-party recoveries for environmental liabilities are recorded when it is probable that a recovery will be realized and are included in the consolidated balance sheets in “Accounts and notes receivable - Other.” Environmental costs are capitalized if the costs extend the life of the property, increase its capacity and/or mitigate or prevent contamination from future operations. Environmental costs are also capitalized in recognition of legal asset retirement obligations resulting from the acquisition, construction and/or normal operation of a long-lived asset. Costs related to environmental contamination treatment and cleanup are charged to expense. Estimated future incremental operations, maintenance and management costs directly related to remediation are accrued when such costs are probable and reasonably estimable. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include time deposits and investments with maturities of three months or less at the time of purchase. |
Financial Instruments | Financial Instruments The Company calculates the fair value of financial instruments using quoted market prices when available. When quoted market prices are not available for financial instruments, the Company uses standard pricing models with market-based inputs that take into account the present value of estimated future cash flows. The Company utilizes derivatives to manage exposures to foreign currency exchange rates, commodity prices and interest rate risk. The fair values of all derivatives are recognized as assets or liabilities at the balance sheet date. Changes in the fair values of these instruments are reported in income or AOCL, depending on the use of the derivative and whether the Company has elected hedge accounting treatment. Gains and losses on derivatives that are designated and qualify as cash flow hedging instruments are recorded in AOCL until the underlying transactions are recognized in income. Gains and losses on derivative and non-derivative instruments used as hedges of the Company’s net investment in foreign operations are recorded in AOCL as part of the cumulative translation adjustment. Prior to the adoption of Accounting Standards Update ("ASU") 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" in 2018, the ineffective portions of hedges, if any, were recognized in income immediately. See Note 2 for additional information. Gains and losses on derivatives designated and qualifying as fair value hedging instruments, as well as the offsetting losses and gains on the hedged items, are reported in income in the same accounting period. Derivatives not designated as hedging instruments are marked-to-market at the end of each accounting period with the results included in income. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. The method of determining cost for each subsidiary varies among last-in, first-out (“LIFO”); first-in, first-out (“FIFO”); and average cost, and is used consistently from year to year. At December 31, 2018, approximately 34 percent , 57 percent and 9 percent of the Company's inventories were accounted for under the LIFO, FIFO and average cost methods, respectively. At December 31, 2017 , approximately 32 percent , 59 percent and 9 percent of the Company's inventories were accounted for under the LIFO, FIFO and average cost methods, respectively. The Company routinely exchanges and swaps raw materials and finished goods with other companies to reduce delivery time, freight and other transportation costs. These transactions are treated as non-monetary exchanges and are valued at cost. |
Property | Property Land, buildings and equipment, including property under capital lease agreements, are carried at cost less accumulated depreciation. Depreciation is based on the estimated service lives of depreciable assets and is calculated using the straight-line method, unless the asset was capitalized before 1997 when the declining balance method was used. Fully depreciated assets are retained in property and accumulated depreciation accounts until they are removed from service. In the case of disposals, assets and related accumulated depreciation are removed from the accounts, and the net amounts, less proceeds from disposal, are included in income. |
Impairment and Disposal of Long-Lived Assets | Impairment and Disposal of Long-Lived Assets The Company evaluates long-lived assets and certain identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When undiscounted future cash flows are not expected to be sufficient to recover an asset’s carrying amount, the asset is written down to its fair value based on bids received from third parties or a discounted cash flow analysis based on market participant assumptions. Long-lived assets to be disposed of by sale, if material, are classified as held for sale and reported at the lower of carrying amount or fair value less cost to sell, and depreciation is ceased. Long-lived assets to be disposed of other than by sale are classified as held and used until they are disposed of and reported at the lower of carrying amount or fair value, and depreciation is recognized over the remaining useful life of the assets. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company records goodwill when the purchase price of a business combination exceeds the estimated fair value of net identified tangible and intangible assets acquired. Goodwill is tested for impairment at the reporting unit level annually in the fourth quarter, or more frequently when events or changes in circumstances indicate that the fair value of a reporting unit has more likely than not declined below its carrying value. When testing goodwill for impairment, the Company may first assess qualitative factors. If an initial qualitative assessment identifies that it is more likely than not that the fair value of a reporting unit is less than its carrying value, additional quantitative testing is performed. The Company may also elect to skip the qualitative testing and proceed directly to the quantitative testing. If the quantitative testing indicates that goodwill is impaired, an impairment charge is recognized based on the difference between the reporting unit's carrying value and its fair value. The Company primarily utilizes a discounted cash flow methodology to calculate the fair value of its reporting units. Finite-lived intangible assets such as purchased customer lists, developed technology, patents, trademarks and software, are amortized over their estimated useful lives, generally on a straight-line basis for periods ranging primarily from 3 to 20 years. Indefinite-lived intangible assets are reviewed for impairment or obsolescence annually, or more frequently when events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable. If impaired, intangible assets are written down to fair value based on discounted cash flows. |
Asset Retirement Obligations | Asset Retirement Obligations The Company records asset retirement obligations as incurred and reasonably estimable, including obligations for which the timing and/or method of settlement are conditional on a future event that may or may not be within the control of the Company. The fair values of obligations are recorded as liabilities on a discounted basis and are accreted over time for the change in present value. Costs associated with the liabilities are capitalized and amortized over the estimated remaining useful life of the asset, generally for periods of 10 years or less. |
Investments | Investments Investments in debt securities, primarily held by the Company’s insurance operations, are classified as trading, available-for-sale or held-to-maturity. Investments classified as trading are reported at fair value with unrealized gains and losses related to mark-to-market adjustments included in income. Those classified as available-for-sale are reported at fair value with unrealized gains and losses recorded in AOCL. Those classified as held-to-maturity are recorded at amortized cost. The cost of investments sold is determined by FIFO or specific identification. Investments in equity securities, primarily held by the Company’s insurance operations, with a readily determinable fair value are reported at fair value with unrealized gains and losses related to mark-to-market adjustments included in income. Equity securities without a readily determinable fair value are accounted for at cost, adjusted for impairments and observable price changes in orderly transactions. The Company routinely reviews its investments for declines in fair value below the cost basis. When events or changes in circumstances indicate the carrying value of an asset may not be recoverable, the security is written down to fair value, establishing a new cost basis. |
Revenue | Revenue Effective with the January 1, 2018 adoption of ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," and the associated ASUs (collectively, "Topic 606"), the Company recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. To determine revenue recognition for the arrangements that the Company determines are within the scope of Topic 606, the Company performs the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. See Note 5 for additional information. Revenue related to the Company's insurance operations includes third-party insurance premiums, which are earned over the terms of the related insurance policies and reinsurance contracts. In periods prior to the adoption of Topic 606, the Company's accounting policy was to recognize revenue when it was realized or realizable, and the earnings process was complete. Revenue for product sales was recognized as risk and title to the product transferred to the customer, which usually occurred at the time shipment was made. As such, title to the product passed when the product was delivered to the freight carrier. The Company’s standard terms of delivery were included in its contracts of sale, order confirmation documents and invoices. Revenue related to the initial licensing of patent and technology was recognized when earned; revenue related to running royalties was recognized according to licensee production levels. |
Severance Costs | Severance Costs The Company routinely reviews its operations around the world in an effort to ensure competitiveness across its businesses and geographic regions. When the reviews result in a workforce reduction related to the shutdown of facilities or other optimization activities, severance benefits are provided to employees primarily under the Company’s ongoing benefit arrangements. These severance costs are accrued once management commits to a plan of termination and it becomes probable that employees will be entitled to benefits at amounts that can be reasonably estimated. |
Integration and Separation Costs | Integration and Separation Costs The Company classifies expenses related to the Merger and the ownership restructure of Dow Silicones as "Integration and separation costs" in the consolidated statements of income. Merger-related costs include: costs incurred to prepare for and close the Merger, post-Merger integration expenses and costs incurred to prepare for the separation of AgCo and SpecCo and the receipt of ECP. The Dow Silicones-related costs include costs incurred to prepare for and close the ownership restructure, as well as integration expenses. These costs primarily consist of financial advisor, information technology, legal, accounting, consulting and other professional advisory fees associated with preparation and execution of these activities. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities using enacted tax rates. The effect of a change in tax rates on deferred tax assets or liabilities is recognized in income in the period that includes the enactment date. The Company uses the portfolio approach for releasing income tax effects from AOCL. Effective with the Merger, TDCC and DuPont were subsidiaries of DowDuPont. Prior to the separation, TDCC was included in DowDuPont's consolidated tax groups and related income tax returns within certain jurisdictions. The Company will continue to record a separate tax liability for its share of the taxable income and tax attributes and obligations on DowDuPont’s consolidated income tax returns following a formula consistent with the economic sharing of tax attributes and obligations. The Company and DuPont compute the amount due to DowDuPont for their share of taxable income and tax attributes and obligations on DowDuPont’s consolidated tax return. The amounts reported as income tax payable or receivable represent the Company’s payment obligation (or refundable amount) to DowDuPont based on a theoretical tax liability calculated based on the methodologies agreed, elected or required in each combined or consolidated filing jurisdiction. The Company recognizes the financial statement effects of an uncertain income tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. The Company accrues for other tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated. The current portion of uncertain income tax positions is included in “Income taxes payable” and the long-term portion is included in “Other noncurrent obligations” in the consolidated balance sheets. Provision is made for taxes on undistributed earnings of foreign subsidiaries and related companies to the extent that such earnings are not deemed to be permanently invested. See Note 10 for further information relating to the enactment of the Tax Cuts and Jobs Act ("The Act"). |
Earnings per common share | Earnings per Common Share The calculation of earnings per common share is based on the weighted-average number of the Company's common shares outstanding for the applicable period. The calculation of diluted earnings per common share reflects the effect of all potential common shares that were outstanding during the respective periods, unless the effect of doing so is antidilutive. |
RECENT ACCOUNTING GUIDANCE Rece
RECENT ACCOUNTING GUIDANCE Recent Accounting Guidance (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Recent accounting guidance | In the fourth quarter of 2018, the Company early adopted ASU 2018-14, "Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans," which, as part of the Financial Accounting Standards Board ("FASB") disclosure framework project, removes disclosures that are no longer considered cost beneficial, clarifies the specific requirements of certain disclosures and adds new disclosure requirements that are considered relevant for employers that sponsor defined benefit pension and/or other postretirement benefit plans. The new standard is effective for fiscal years ending after December 15, 2020, and early adoption is permitted. The new guidance should be applied on a retrospective basis for all periods presented. See Note 21 for updated disclosures for defined benefit pension and other postretirement benefit plans. In the second quarter of 2018, the Company early adopted ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities," which amends the hedge accounting recognition and presentation under Topic 815, with the objectives of improving the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities and simplifying the application of hedge accounting by preparers. The new standard expands the strategies eligible for hedge accounting, relaxes the timing requirements of hedge documentation and effectiveness assessments, and permits, in certain cases, the use of qualitative assessments on an ongoing basis to assess hedge effectiveness. The new guidance also requires new disclosures and presentation. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted in any interim or annual period after issuance of the ASU. Entities must adopt the new guidance by applying a modified retrospective approach to hedging relationships existing as of the adoption date. The adoption of the new guidance did not have a material impact on the consolidated financial statements. In the second quarter of 2018, the Company early adopted ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income," which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from The Act, which was enacted on December 22, 2017, and requires certain disclosures about stranded tax effects. An entity has the option of applying the new guidance at the beginning of the period of adoption or retrospectively to each period (or periods) in which the tax effects related to items remaining in accumulated other comprehensive income are recognized. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and early adoption is permitted, including adoption in an interim period for reporting periods in which the financial statements have not yet been issued. The Company's adoption of the new standard was applied prospectively at the beginning of the second quarter of 2018, with a reclassification of the stranded tax effects as a result of the The Act from accumulated other comprehensive loss to retained earnings. In the first quarter of 2018, the Company adopted ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," which is the new comprehensive revenue recognition standard that supersedes the revenue recognition requirements in Topic 605, "Revenue Recognition," and most industry specific guidance. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to a customer in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In 2015 and 2016, the FASB issued additional ASUs related to Topic 606 that delayed the effective date of the guidance and clarified various aspects of the new revenue guidance, including principal versus agent considerations, identification of performance obligations, and accounting for licenses, and included other improvements and practical expedients. The new guidance was effective for annual and interim periods beginning after December 15, 2017. The Company elected to adopt the new guidance using the modified retrospective transition method for all contracts not completed as of the date of adoption. The Company recognized the cumulative effect of applying the new revenue standard as an adjustment to the opening balance of retained earnings at the beginning of the first quarter of 2018. The comparative periods have not been restated and continue to be accounted for under Topic 605. The adoption of the new guidance did not have a material impact on the consolidated financial statements. See Note 5 for additional disclosures regarding the Company's contracts with customers as well as the impact of adopting Topic 606. In the first quarter of 2018, the Company adopted ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Changes to the current guidance primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company applied the amendments in the new guidance by means of a cumulative-effect adjustment to the opening balance of retained earnings at the beginning of the first quarter of 2018. The adoption of the new guidance did not have a material impact on the consolidated financial statements. See Note 23 for additional information. In the first quarter of 2018, the Company adopted ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," which addresses diversity in practice in how certain cash receipts and cash payments are presented and classified in the statements of cash flows and addresses eight specific cash flow issues. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. A key provision in the new guidance impacted the presentation of proceeds from interests in certain trade accounts receivable conduits, which were retrospectively reclassified from "Operating Activities" to "Investing Activities" in the consolidated statements of cash flows. In the first quarter of 2018, the Company adopted ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory," which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments were effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The new guidance was applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings at the beginning of the first quarter of 2018. The adoption of this guidance did not have a material impact on the consolidated financial statements. In the first quarter of 2018, the Company adopted ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash," which clarifies how entities should present restricted cash and restricted cash equivalents in the statements of cash flows, and as a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statements of cash flows. An entity with a material balance of restricted cash and restricted cash equivalents must disclose information about the nature of the restrictions. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The new guidance changed the presentation of restricted cash in the consolidated statements of cash flows and was implemented on a retrospective basis in the first quarter of 2018. In the first quarter of 2018, the Company adopted ASU 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost," which amends the requirements related to the income statement presentation of the components of net periodic benefit cost for employer sponsored defined benefit pension and other postretirement benefit plans. Under the new guidance, an entity must disaggregate and present the service cost component of net periodic benefit cost in the same income statement line items as other employee compensation costs arising from services rendered during the period, and only the service cost component will be eligible for capitalization. Other components of net periodic benefit cost must be presented separately from the line items that includes the service cost. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Entities were required to use a retrospective transition method to adopt the requirement for separate income statement presentation of the service cost and other components, and a prospective transition method to adopt the requirement to limit the capitalization of benefit cost to the service component. Accordingly, in the first quarter of 2018, the Company used a retrospective transition method to reclassify net periodic benefit cost, other than the service component, from "Cost of sales," "Research and development expenses" and "Selling, general and administrative expenses" to "Sundry income (expense) - net" in the consolidated statements of income. Accounting Guidance Issued But Not Adopted at December 31, 2018 In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," and associated ASUs related to Topic 842, which requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The new guidance requires that a lessee recognize assets and liabilities for leases, and recognition, presentation and measurement in the financial statements will depend on its classification as a finance or operating lease. In addition, the new guidance will require disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. Lessor accounting remains largely unchanged from current U.S. GAAP but does contain some targeted improvements to align with the new revenue recognition guidance issued in 2014 (Topic 606). The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and early adoption was permitted. The Company had a cross-functional team in place to evaluate and implement the new guidance and had substantially completed the implementation of a third-party software solution to facilitate compliance with accounting and reporting requirements. The team reviewed existing lease arrangements and collected and loaded a significant portion of the lease portfolio into the software. The Company enhanced accounting systems and updated business processes and controls related to the new guidance for leases. Collectively, these activities enabled the Company to meet the new accounting and disclosure requirements upon adoption in the first quarter of 2019. The ASU requires a modified retrospective transition approach, applying the new standard to all leases existing at the date of initial adoption. An entity may choose to use either (1) the effective date or (2) the beginning of the earliest comparative period presented in the financial statements at the date of initial application. The Company elected to apply the transition requirements at the January 1, 2019, effective date rather than at the beginning of the earliest comparative period presented. This approach allowed for a cumulative effect adjustment in the period of adoption, and prior periods will not be restated. In addition, the Company elected the package of practical expedients permitted under the transition guidance, which does not require reassessment of prior conclusions related to contracts containing a lease, lease classification and initial direct lease costs. As an accounting policy election, the Company will exclude short-term leases (term of 12 months or less) from the balance sheet presentation and will account for non-lease and lease components in a contract as a single lease component for all asset classes. The Company finalized the evaluation of the January 1, 2019 impact, and the result was an increase of lease-related assets and liabilities of $2.3 billion in the consolidated balance sheets. The impact on the Company's consolidated statements of income and consolidated statements of cash flows was not material. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement," which is part of the FASB disclosure framework project to improve the effectiveness of disclosures in the notes to the financial statements. The amendments in the new guidance remove, modify and add certain disclosure requirements related to fair value measurements covered in Topic 820, "Fair Value Measurement." The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for either the entire standard or only the requirements that modify or eliminate the disclosure requirements, with certain requirements applied prospectively, and all other requirements applied retrospectively to all periods presented. The Company is currently evaluating the impact of adopting this guidance. In August 2018, the FASB issued ASU 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract," which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Topic 350, "Intangibles - Goodwill and Other" to determine which implementation costs to capitalize as assets or expense as incurred. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted and an entity can elect to apply the new guidance on a prospective or retrospective basis. The Company is currently evaluating the impact of adopting this guidance. |
SEPARATION FROM DOWDUPONT (Tabl
SEPARATION FROM DOWDUPONT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of ECP assets and liabilities assumed | The ECP assets received and liabilities assumed were recorded at DowDuPont's historical cost basis as reflected in the following table: ECP Assets Received and Liabilities Assumed on Aug 31, 2017 Carrying value In millions Cash and cash equivalents $ 1 Accounts and notes receivable - Trade 169 Accounts and notes receivable - Other 32 Inventories 529 Other current assets 6 Investment in nonconsolidated affiliates 116 Net property 817 Goodwill 3,617 Other intangible assets 1,484 Deferred income tax assets 9 Total Assets $ 6,780 Accounts payable - Trade 102 Accounts payable - Other 29 Accrued and other current liabilities 31 Deferred income tax liabilities 683 Pension and other postretirement benefits - noncurrent 6 Other noncurrent obligations 3 Total Liabilities $ 854 Net Assets (impact to "Retained earnings") $ 5,926 |
Schedule of ECP results of operations | The following table provides "Net sales" and "Income (loss) from continuing operations before income taxes" of ECP included in the Company's results from the closing of the Merger on August 31, 2017: ECP Results of Operations 2018 Sep 1 - Dec 31, 2017 In millions Net sales $ 1,512 $ 558 Income (loss) from continuing operations before income taxes 1 $ 178 $ (46 ) 1. Includes the amortization of the fair value step-up of inventory recognized in "Cost of Sales" of $2 million in 2018 and $120 million for the period of September 1, 2017 through December 31, 2017. |
Schedule of income (loss) from discontinued operations | The results of operations of AgCo and SpecCo are presented as discontinued operations in the consolidated statements of income and are summarized in the table that follows: Results of Operations of AgCo and SpecCo 2018 2017 2016 In millions Net sales $ 12,187 $ 12,337 $ 11,894 Cost of sales 7,668 7,769 7,615 Research and development expenses 761 854 848 Selling, general and administrative expenses 1,108 1,143 1,152 Amortization of intangibles 249 255 228 Restructuring and asset related charges - net 411 376 16 Integration and separation costs — 18 — Equity in earnings of nonconsolidated affiliates 400 372 254 Sundry income (expense) - net (13 ) 245 862 Interest income 26 40 33 Interest expense and amortization of debt discount 56 61 31 Income from discontinued operations before income taxes $ 2,347 $ 2,518 $ 3,153 Provision for income taxes 512 636 227 Income from discontinued operations, net of tax $ 1,835 $ 1,882 $ 2,926 |
Schedule of assets and liabilities of discontinued operations | The carrying amount of major classes of assets and liabilities related to the distribution of AgCo and SpecCo consisted of the following: Carrying Values of AgCo and SpecCo 1 Dec 31, 2018 Dec 31, 2017 In millions Accounts and notes receivable - Trade $ 2,768 $ 2,124 Accounts and notes receivable - Other 773 545 Inventories 2,826 2,763 Other current assets 151 117 Investment in nonconsolidated affiliates 612 749 Other investments 2 2 Noncurrent receivables 35 54 Net property 3,014 3,043 Goodwill 7,590 7,622 Other intangible assets 1,830 2,075 Deferred income tax assets 239 169 Deferred charges and other assets 60 16 Total assets of discontinued operations $ 19,900 $ 19,279 Notes payable 7 2 Long-term debt due within one year 4 4 Accounts payable - Trade 1,118 1,477 Accounts payable - Other 868 631 Income taxes payable 234 207 Accrued and other current liabilities 716 687 Long-Term Debt 5 8 Deferred income tax liabilities 568 741 Pension and other postretirement benefits - noncurrent 306 307 Other noncurrent obligations 662 807 Total liabilities of discontinued operations $ 4,488 $ 4,871 1. Includes assets and liabilities of consolidated variable interest entities related to discontinued operations. |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Disaggregation of Revenue The Company disaggregates its revenue from contracts with customers by segment and business, and geographic region, as the Company believes it best depicts the nature, amount, timing and uncertainty of its revenue and cash flows. See details in the tables below: Net Trade Sales by Segment and Business 2018 In millions Coatings & Performance Monomers $ 3,979 Consumer Solutions 5,698 Performance Materials & Coatings $ 9,677 Industrial Solutions $ 4,812 Polyurethanes & Construction Chemicals 10,615 Others 20 Industrial Intermediates & Infrastructure $ 15,447 Hydrocarbons & Energy $ 7,587 Packaging and Specialty Plastics 16,608 Packaging & Specialty Plastics $ 24,195 Corporate $ 285 Total $ 49,604 Net Trade Sales by Geographic Region 2018 In millions U.S. & Canada $ 17,809 EMEAI 1 17,406 Asia Pacific 9,404 Latin America 4,985 Total $ 49,604 1. Europe, Middle East, Africa and India. |
Contract with Customer, Asset and Liability | The following table summarizes the contract balances at December 31, 2018 and 2017: Contract Balances Dec 31, 2018 Topic 606 Adjustments Jan 1, 2018 Dec 31, 2017 In millions Accounts and notes receivable - Trade $ 5,646 $ — $ 5,386 Contract assets - current 1 $ 19 $ 1 $ — Contract assets - noncurrent 2 $ 1 $ — $ — Contract liabilities - current 3 $ 134 $ 21 $ 116 Contract liabilities - noncurrent 4 $ 1,318 $ 47 $ 1,365 1. Included in "Other current assets" in the consolidated balance sheets. 2. Included in "Deferred charges and other assets" in the consolidated balance sheets. 3. Included in "Accrued and other current liabilities" in the consolidated balance sheets. 4. Included in "Other noncurrent obligations" in the consolidated balance sheets. |
RESTRUCTURING, GOODWILL IMPAI_2
RESTRUCTURING, GOODWILL IMPAIRMENT AND ASSET RELATED CHARGES - NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
DowDuPont Cost Synergy Program [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the activities related to the Synergy Program. At December 31, 2018 , $205 million was included in "Accrued and other current liabilities" ( $170 million at December 31, 2017 ) and $12 million was included in "Other noncurrent obligations" ( $105 million at December 31, 2017 ) in the consolidated balance sheets. DowDuPont Synergy Program Severance and Related Benefit Costs Asset Write-downs and Write-offs Costs Associated with Exit and Disposal Activities Total In millions 2017 restructuring charges Performance Materials & Coatings $ — $ 9 $ 2 $ 11 Industrial Intermediates & Infrastructure — 12 — 12 Packaging & Specialty Plastics — 33 3 36 Corporate 307 33 — 340 Total 2017 restructuring charges $ 307 $ 87 $ 5 $ 399 Charges against the reserve — (87 ) — (87 ) Cash payments (37 ) — — (37 ) Reserve balance at Dec 31, 2017 $ 270 $ — $ 5 $ 275 2018 restructuring charges Performance Materials & Coatings $ — $ 7 $ — $ 7 Industrial Intermediates & Infrastructure — — 11 11 Packaging & Specialty Plastics — 10 3 13 Corporate 137 16 — 153 Total 2018 restructuring charges $ 137 $ 33 $ 14 $ 184 Charges against the reserve — (33 ) — (33 ) Cash payments (197 ) — (12 ) (209 ) Reserve balance at Dec 31, 2018 $ 210 $ — $ 7 $ 217 |
2016 Restructuring | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the activities related to the Company's 2016 restructuring reserve. 2016 Restructuring Charges Severance and Related Benefit Costs Asset Write-downs and Write-offs Costs Associated with Exit and Disposal Activities Total In millions Performance Materials & Coatings $ — $ 27 $ 15 $ 42 Industrial Intermediates & Infrastructure — 70 13 83 Packaging & Specialty Plastics — 10 — 10 Corporate 255 46 — 301 2016 restructuring charges $ 255 $ 153 $ 28 $ 436 Charges against the reserve — (153 ) — (153 ) Cash payments (66 ) — (1 ) (67 ) Reserve balance at Dec 31, 2016 $ 189 $ — $ 27 $ 216 Adjustments to the reserve 1 — — (7 ) (7 ) Cash payments (137 ) — (3 ) (140 ) Reserve balance at Dec 31, 2017 $ 52 $ — $ 17 $ 69 Adjustments to the reserve 1 (8 ) — 14 6 Cash payments (38 ) — (4 ) (42 ) Reserve balance at Jun 30, 2018 $ 6 $ — $ 27 $ 33 1. Included in "Restructuring, goodwill impairment and asset related charges - net" in the consolidated statements of income. Charges for severance and related benefit costs related to Corporate and costs associated with exit and disposal activities related to Performance Materials & Coatings. |
SUPPLEMENTARY INFORMATION (Tab
SUPPLEMENTARY INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplementary Information [Abstract] | |
Sundry Income, Net | Sundry Income (Expense) – Net In millions 2018 2017 2016 Non-operating pension and other postretirement benefit plan net credits (costs) 1 $ 123 $ (676 ) $ 35 Gain on sales of other assets and investments 18 117 157 Foreign exchange losses (119 ) (72 ) (126 ) Post-closing adjustments on divestiture of MEGlobal 20 — (1 ) Gain and post-closing adjustments related to Dow Silicones ownership restructure 2 (20 ) — 1,617 Loss on early extinguishment of debt 3 (54 ) — — Gain on divestiture of the EAA Business 4 — 227 — Gain related to Nova patent infringement award 5 — 137 — Impact of split-off of chlorine value chain — 7 6 Settlement of the urethane matters class action lawsuit and opt-out cases 5 — — (1,235 ) Costs associated with transactions and productivity actions — — (41 ) Loss on divestitures — — (25 ) Implant liability adjustment 5 — — 16 Reclassification of cumulative translation adjustments 4 8 — Other - net 124 98 114 Total sundry income (expense) – net $ 96 $ (154 ) $ 517 1. Presented in accordance with ASU 2017-07. See Notes 2 and 21 for additional information. 2. See Note 6 for additional information. 3. See Note 17 for additional information. 4. See Note 7 for additional information. 5. See Note 18 for additional information. |
Cash Flow, Supplemental Disclosures [Text Block] | The following table shows cash paid for interest and income taxes for the years ended December 31, 2018 , 2017 and 2016 : Supplemental Cash Flow Information 2018 2017 2016 In millions Cash paid during year for: Interest, net of amounts capitalized $ 1,143 $ 1,115 $ 1,162 Income taxes $ 1,193 $ 1,259 $ 1,306 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Geographic Allocation of Income and Provision (Credit) for Income Taxes on Continuing Operations In millions 2018 2017 2016 Income (loss) from continuing operations before income taxes Domestic 1, 2 $ 745 $ (2,226 ) $ (991 ) Foreign 1 3,004 2,463 2,251 Income from continuing operations before income taxes $ 3,749 $ 237 $ 1,260 Current tax expense (benefit) Federal $ 324 $ (864 ) $ 164 State and local 13 4 21 Foreign 901 971 606 Total current tax expense $ 1,238 $ 111 $ 791 Deferred tax expense (benefit) Federal 3 $ (318 ) $ 1,499 $ (1,029 ) State and local (32 ) 85 (59 ) Foreign (79 ) (171 ) 79 Total deferred tax expense (benefit) $ (429 ) $ 1,413 $ (1,009 ) Provision (credit) for income taxes on continuing operations $ 809 $ 1,524 $ (218 ) Income (loss) from continuing operations, net of tax $ 2,940 $ (1,287 ) $ 1,478 1. In 2016, the domestic component of "Income from continuing operations before income taxes" included approximately $1.4 billion of income from portfolio actions. See Notes 6 and 7 for additional information. 2. In 2017, the domestic component of "Income from continuing operations before income taxes" included approximately $1.4 billion of expense related to goodwill impairment and litigation settlements. In 2016, the domestic component of "Income from continuing operations before income taxes" included approximately $2.6 billion of expenses related to the urethane matters class action lawsuit and opt-out cases settlements, asbestos-related charge and charges for environmental matters. See Notes 15 and 18 for additional information. 3. The 2018 and 2017 amounts reflect the tax impact of The Act which accelerated the utilization of tax credits and required remeasurement of all U.S. deferred tax assets and liabilities. The 2016 amount reflects the tax impact of accrued one-time items and reduced domestic income which limited the utilization of tax credits. |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliation to U.S. Statutory Rate 2018 2017 2016 Statutory U.S. federal income tax rate 21.0 % 35.0 % 35.0 % Equity earnings effect (3.3 ) (52.7 ) (1.7 ) Foreign income taxed at rates other than the statutory U.S. federal income tax rate 1 6.7 (61.2 ) (14.9 ) U.S. tax effect of foreign earnings and dividends (0.7 ) (8.4 ) 12.5 Unrecognized tax benefits 0.2 13.5 (2.7 ) Divestitures and ownership restructuring activities 2 0.8 142.0 (48.2 ) Impact of U.S. tax reform (3.4 ) 367.8 — State and local income taxes 0.4 11.4 2.9 Goodwill impairment — 220.8 — Excess tax benefits from stock-based compensation 3 (1.0 ) (39.7 ) — Other - net 0.9 14.5 (0.2 ) Effective Tax Rate 21.6 % 643.0 % (17.3 )% 1. Includes the impact of valuation allowances in foreign jurisdictions. 2. See Notes 6 and 7 for additional information. 3. Reflects the impact of the adoption of ASU 2016-09, "Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting," which was adopted January 1, 2017, and resulted in the recognition of excess tax benefits related to stock-based compensation in "Provision (credit) for income taxes on continuing operations." |
Schedule of Deferred Tax Assets and Liabilities | Deferred Tax Balances at Dec 31 2018 2017 In millions Assets Liabilities Assets Liabilities Property $ 406 $ 2,519 $ 488 $ 2,467 Tax loss and credit carryforwards 2,079 — 1,687 — Postretirement benefit obligations 2,115 143 2,411 149 Other accruals and reserves 1,220 151 1,409 174 Intangibles 157 954 126 1,019 Inventory 53 239 52 232 Investments 190 84 275 87 Other – net 620 247 427 405 Subtotal $ 6,840 $ 4,337 $ 6,875 $ 4,533 Valuation allowances (1,225 ) — (1,255 ) — Total $ 5,615 $ 4,337 $ 5,620 $ 4,533 |
Summary of Operating Loss Carryforwards | Operating Loss and Tax Credit Carryforwards at Dec 31 2018 2017 In millions Assets Assets Operating loss carryforwards Expire within 5 years $ 245 $ 222 Expire after 5 years or indefinite expiration 1,196 1,255 Total operating loss carryforwards $ 1,441 $ 1,477 Tax credit carryforwards Expire within 5 years $ 32 $ 39 Expire after 5 years or indefinite expiration 606 171 Total tax credit carryforwards $ 638 $ 210 Total operating loss and tax credit carryforwards $ 2,079 $ 1,687 |
Schedule of Total Gross Unrecognized Tax Benefits | The following table provides a reconciliation of the Company's unrecognized tax benefits: Total Gross Unrecognized Tax Benefits In millions 2018 2017 2016 Total unrecognized tax benefits at Jan 1 $ 255 $ 231 $ 280 Decreases related to positions taken on items from prior years (8 ) (4 ) (12 ) Increases related to positions taken on items from prior years 1 68 37 153 Increases related to positions taken in the current year 2 2 12 135 Settlement of uncertain tax positions with tax authorities 1 — (12 ) (325 ) Decreases due to expiration of statutes of limitations (1 ) (9 ) — Foreign exchange gain (2 ) — — Total unrecognized tax benefits at Dec 31 $ 314 $ 255 $ 231 Total unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 235 $ 245 $ 225 Total amount of interest and penalties (benefit) recognized in "Provision (credit) for income taxes on continuing operations" $ (12 ) $ 2 $ (55 ) Total accrual for interest and penalties recognized in the consolidated balance sheets $ 109 $ 110 $ 89 1. The 2016 balance includes the impact of a settlement agreement related to a historical change in the legal ownership structure of a nonconsolidated affiliate discussed below. 2. The 2016 balance includes $126 million assumed in the Dow Silicones ownership restructure. |
Schedule of Tax Years Subject to Examination by Major Tax Jurisdiction | Tax years that remain subject to examination for the Company’s major tax jurisdictions are shown below: Tax Years Subject to Examination by Major Tax Jurisdiction at Dec 31, 2018 Earliest Open Year Jurisdiction Argentina 2011 Brazil 2006 Canada 2012 China 2008 Germany 2009 Italy 2013 The Netherlands 2016 Switzerland 2012 United States: Federal income tax 2004 State and local income tax 2004 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following tables provide earnings per share calculations of Dow for the years ended December 31, 2018, 2017, and 2016. In accordance with the accounting guidance for earnings per share, earnings per share of TDCC is not presented as this information is not required in financial statements of wholly owned subsidiaries. Net Income (Loss) for Earnings Per Share Calculations 2018 2017 2016 In millions Income (loss) from continuing operations, net of tax $ 2,940 $ (1,287 ) $ 1,478 Net income attributable to noncontrolling interests - continuing operations (102 ) (102 ) (53 ) Preferred stock dividends 1, 2 — — (340 ) Net income attributable to participating securities - continuing operations 3 — (8 ) (14 ) Income (loss) from continuing operations attributable to common stockholders $ 2,838 $ (1,397 ) $ 1,071 Income from discontinued operations, net of tax $ 1,835 $ 1,882 $ 2,926 Net income attributable to noncontrolling interests - discontinued operations (32 ) (28 ) (33 ) Net income attributable to participating securities - discontinued operations 3 — (6 ) (8 ) Income from discontinued operations attributable to common stockholders $ 1,803 $ 1,848 $ 2,885 Net income attributable to common stockholders $ 4,641 $ 451 $ 3,956 Earnings Per Share Calculations - Basic 2018 2017 2016 Dollars per share Income (loss) from continuing operations attributable to common stockholders $ 3.80 $ (1.88 ) $ 1.57 Income from discontinued operations, net of tax 2.41 2.48 4.23 Net income attributable to common stockholders $ 6.21 $ 0.60 $ 5.80 Earnings Per Share Calculations - Diluted 2018 2017 2016 Dollars per share Income (loss) from continuing operations attributable to common stockholders $ 3.80 $ (1.88 ) $ 1.55 Income from discontinued operations, net of tax 2.41 2.48 4.18 Net income attributable to common stockholders $ 6.21 $ 0.60 $ 5.73 Share Count Information 2018 2017 2016 Shares in millions Weighted-average common shares - basic 4, 5, 6 747.2 744.8 681.6 Plus dilutive effect of equity compensation plans — — 9.3 Weighted-average common shares - diluted 4, 5, 6 747.2 744.8 690.9 Stock options and restricted stock units excluded from EPS calculations 7 — 1.1 1.1 1. On December 30, 2016, TDCC converted all shares of its Cumulative Convertible Perpetual Preferred Stock, Series A ("Preferred Stock") into shares of TDCC's common stock. As a result of this conversion, no shares of TDCC Preferred Stock are issued or outstanding. See Note 19 for additional information. 2. Preferred Stock dividends were not added back in the calculation of diluted earnings per share for the period ended December 31, 2016, because the effect of an assumed conversion of TDCC's Preferred Stock would have been antidilutive. 3. Restricted stock units (formerly termed deferred stock) are considered participating securities due to the Company's practice of paying dividend equivalents on unvested shares. 4. Share amounts for the year ended December 31, 2018 were based on 2,246.3 million DowDuPont common shares outstanding as of the Record Date for the April 1, 2019 distribution, less 4.6 million Employee Stock Ownership Plan ("ESOP") shares that had not been released and were not considered outstanding, adjusted for the Distribution Ratio. There was no dilutive effect for the year ended December 31, 2018 as the Company did not engage in activities giving rise to dilution. 5. Share amounts for the year ended December 31, 2017 were based on 2,246.3 million DowDuPont common shares outstanding as of the Record Date for the April 1, 2019 distribution, less 4.6 million ESOP shares that had not been released and were not considered outstanding, adjusted for the Distribution Ratio and further adjusted by 2.4 million shares for the effect of TDCC basic common shares outstanding during the pre-Merger period. The year ended December 31, 2017 reflected a loss from continuing operations, and as such, the basic share count was used for purposes of calculating earnings per share on a diluted basis. 6. Share amounts for the year ended December 31, 2016 were based on TDCC weighted average common shares outstanding of 1,108.1 million (basic) and 1,123.2 million (diluted), adjusted by a conversion factor of 0.6151 used to present TDCC shares of 1,214.8 million at the time of Merger on a basis that is equivalent to the Dow Inc. common shares at distribution of 747.2 million . 7. These outstanding options to purchase shares of common stock and restricted stock units were excluded from the calculation of diluted earnings per share because the effect of including them would have been antidilutive. For the year ended December 31, 2018, the Company did not engage in activities giving rise to dilution. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The following table provides a breakdown of inventories: Inventories at Dec 31 In millions 2018 2017 Finished goods $ 4,313 $ 3,888 Work in process 1,335 906 Raw materials 674 631 Supplies 826 790 Total $ 7,148 $ 6,215 Adjustment of inventories to a LIFO basis (249 ) (170 ) Total inventories $ 6,899 $ 6,045 |
PROPERTY (Tables)
PROPERTY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property | The following table provides a breakdown of property: Property at Dec 31 Estimated Useful Lives (Years) 2018 2017 In millions Land and land improvements 0-25 $ 2,059 $ 1,868 Buildings 5-50 4,745 4,600 Machinery and equipment 3-25 40,250 38,131 Other property 3-50 5,084 4,969 Construction in progress — 1,846 3,241 Total property $ 53,984 $ 52,809 In millions 2018 2017 2016 Depreciation expense $ 2,174 $ 1,955 $ 1,729 Capitalized interest $ 88 $ 240 $ 243 |
NONCONSOLIDATED AFFILIATES (Tab
NONCONSOLIDATED AFFILIATES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Nonconsolidated Affiliates - Investments and Dividends | The Company’s investments in companies accounted for using the equity method (“nonconsolidated affiliates”) and dividends received from nonconsolidated affiliates are shown in the following tables: Investments in Nonconsolidated Affiliates at Dec 31 2018 1 2017 1 In millions Investment in nonconsolidated affiliates $ 3,320 $ 3,107 1. The carrying amount of the Company’s investments in nonconsolidated affiliates at December 31, 2018 , was $39 million less than its share of the investees’ net assets, ( $63 million less at December 31, 2017 ), exclusive of additional differences relating to EQUATE Petrochemical Company K.S.C.C. ("EQUATE") and AFSI, which are discussed separately in the disclosures that follow. Dividends Received from Nonconsolidated Affiliates 2018 2017 1 2016 In millions Dividends from nonconsolidated affiliates $ 663 $ 654 $ 612 1. Includes a non-cash dividend of $7 million . |
Balances Due To or Due From Nonconsolidated Affiliates | Balances due to or due from nonconsolidated affiliates at December 31, 2018 and 2017 were as follows: Balances Due To or Due From Nonconsolidated Affiliates at Dec 31 2018 2017 In millions Accounts and notes receivable - Other $ 556 $ 417 Noncurrent receivables 8 282 Total assets $ 564 $ 699 Accounts payable - Other $ 1,347 $ 1,271 The following table presents amounts due to or due from DuPont and its affiliates at December 31, 2018: Balances Due To or Due From DuPont and its Affiliates Dec 31, 2018 Dec 31, 2017 In millions Accounts and notes receivable - Other $ 89 $ 12 Accounts payable - Other $ 19 $ 11 The following table presents revenue earned and expenses incurred related to transactions with DuPont and its affiliates: Sales to DuPont and its Affiliates 2018 In millions Net sales $ 55 Cost of sales $ 42 |
Equity Method Investment | The Company's principal nonconsolidated affiliates and its ownership interest (direct and indirect) for each at December 31, 2018 , 2017 and 2016 are as follows: Principal Nonconsolidated Affiliates at Dec 31 Country Ownership Interest 2018 2017 2016 EQUATE Petrochemical Company K.S.C.C. Kuwait 42.5 % 42.5 % 42.5 % The Kuwait Olefins Company K.S.C.C. Kuwait 42.5 % 42.5 % 42.5 % The Kuwait Styrene Company K.S.C.C. Kuwait 42.5 % 42.5 % 42.5 % Map Ta Phut Olefins Company Limited 1 Thailand 32.77 % 32.77 % 32.77 % Sadara Chemical Company Saudi Arabia 35 % 35 % 35 % The SCG-Dow Group: Siam Polyethylene Company Limited Thailand 50 % 50 % 50 % Siam Polystyrene Company Limited Thailand 50 % 50 % 50 % Siam Styrene Monomer Co., Ltd. Thailand 50 % 50 % 50 % Siam Synthetic Latex Company Limited Thailand 50 % 50 % 50 % 1. The Company's effective ownership of Map Ta Phut Olefins Company Limited ("Map Ta Phut") is 32.77 percent , of which the Company directly owns 20.27 percent and indirectly owns 12.5 percent through its equity interest in Siam Polyethylene Company Limited. The Company’s investment in and equity earnings from its principal nonconsolidated affiliates are shown in the tables below: Investment in Principal Nonconsolidated Affiliates at Dec 31 2018 2017 In millions Investment in nonconsolidated affiliates $ 2,876 $ 2,657 Equity Earnings from Principal Nonconsolidated Affiliates 2018 2017 2016 1 In millions Equity in earnings of principal nonconsolidated affiliates $ 561 $ 347 $ 241 1. Equity in earnings of principal nonconsolidated affiliates for 2016 includes the results of Dow Silicones through May 31, 2016. |
Equity Method Investment Summarized Balance Sheet Information | The summarized financial information that follows represents the combined accounts (at 100 percent ) of the principal nonconsolidated affiliates. Summarized Balance Sheet Information at Dec 31 2018 2017 In millions Current assets $ 7,553 $ 6,833 Noncurrent assets 25,971 26,778 Total assets $ 33,524 $ 33,611 Current liabilities $ 5,163 $ 4,678 Noncurrent liabilities 19,089 20,100 Total liabilities $ 24,252 $ 24,778 Noncontrolling interests $ 72 $ 33 |
Equity Method Investment Summarized Income Statement Information | Summarized Income Statement Information 1 2018 2017 2016 2 In millions Sales $ 14,461 $ 11,629 $ 10,825 Gross profit $ 2,320 $ 1,992 $ 1,975 Income from continuing operations, net of tax $ 1,173 $ 689 $ 410 1. The results in this table reflect purchase and sale activity between certain principal nonconsolidated affiliates and the Company, as previously discussed in the "Transactions with Nonconsolidated Affiliates" section. 2. The summarized income statement information for 2016 includes the results of Dow Silicones through May 31, 2016. |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table shows changes in the carrying amounts of goodwill by reportable segment for the years ended December 31, 2018 and 2017 : Goodwill Performance Materials & Coatings Industrial Intermediates & Infrastructure Packaging & Specialty Plastics Total In millions Balance at Jan 1, 2017 $ 4,938 $ 1,085 $ 1,518 $ 7,541 Divestiture of the EAA Business 1 — — (23 ) (23 ) Dissolution of joint venture 2 48 — — 48 Goodwill impairment (1,491 ) — — (1,491 ) Receipt of the ECP businesses 3 — — 3,617 3,617 Measurement period adjustment - ECP 3 — — (96 ) (96 ) Foreign currency impact 194 16 32 242 Other — — (5 ) (5 ) Balance at Dec 31, 2017 $ 3,689 $ 1,101 $ 5,043 $ 9,833 Foreign currency impact (39 ) (6 ) (24 ) (69 ) Measurement period adjustment - ECP 3 — — 82 82 Balance at Dec 31, 2018 $ 3,650 $ 1,095 $ 5,101 $ 9,846 1. On September 1, 2017, the Company divested its EAA Business to SK Global Chemical Co., Ltd. See Note 7 for additional information. 2. On December 31, 2017, the Company dissolved a crude acrylic acid joint venture. See Note 25 for additional information. 3. Goodwill recognized from the receipt of the ECP businesses as part of the separation from DowDuPont. See Note 4 for additional information. |
Schedule of other intangible assets | The following table provides information regarding the Company’s other intangible assets: Other Intangible Assets at Dec 31 2018 2017 In millions Gross Carrying Amount Accum Amort Net Gross Carrying Amount Accum Amort Net Intangible assets with finite lives: Developed technology $ 2,634 $ (1,252 ) $ 1,382 $ 2,630 $ (1,021 ) $ 1,609 Software 1,404 (805 ) 599 1,323 (727 ) 596 Trademarks/tradenames 352 (329 ) 23 366 (284 ) 82 Customer-related 3,211 (993 ) 2,218 3,247 (810 ) 2,437 Other — — — 2 — 2 Total other intangible assets, finite lives $ 7,601 $ (3,379 ) $ 4,222 $ 7,568 $ (2,842 ) $ 4,726 In-process research and development ("IPR&D") 3 — 3 3 — 3 Total other intangible assets $ 7,604 $ (3,379 ) $ 4,225 $ 7,571 $ (2,842 ) $ 4,729 |
Schedule of ECP other intangible assets | Intangible assets assumed from the receipt of ECP are presented in the table below. See Note 4 for additional information. ECP Intangible Assets at Aug 31, 2017 Gross Carrying Amount Weighted-average Amort. Period (in years) In millions Intangible assets with finite lives: Developed technology $ 366 14 Trademarks/tradenames 20 7 Customer-related 1,098 15 Total $ 1,484 15 |
Schedule of amortization expense | The following table provides information regarding amortization expense from continuing operations related to intangible assets: Amortization Expense from Continuing Operations 2018 2017 2016 In millions Other intangible assets, excluding software $ 469 $ 400 $ 316 Software, included in “Cost of sales” from continuing operations $ 93 $ 82 $ 69 |
Schedule of estimated future amortization expense | Total estimated amortization expense from continuing operations for the next five fiscal years is as follows: Estimated Amortization Expense from Continuing Operations for Next Five Years In millions 2019 $ 518 2020 $ 492 2021 $ 470 2022 $ 413 2023 $ 392 |
TRANSFERS OF FINANCIAL ASSETS (
TRANSFERS OF FINANCIAL ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Transfers and Servicing [Abstract] | |
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets | The following table summarizes the carrying value of interests held, which represents the Company's maximum exposure to loss related to the receivables sold, and the percentage of anticipated credit losses related to the trade accounts receivable sold. Also provided is the sensitivity of the fair value of the interests held to hypothetical adverse changes in the anticipated credit losses; amounts shown below are the corresponding hypothetical decreases in the carrying value of interests. Interests Held at Dec 31 In millions 2018 2017 Carrying value of interests held 1 $ — $ 677 Percentage of anticipated credit losses — % 2.64 % Impact to carrying value - 10% adverse change $ — $ — Impact to carrying value - 20% adverse change $ — $ 1 1. Included in "Accounts and notes receivable - other" in the consolidated balance sheets. |
Qualitative and Quantitative Information, Transferor's Continuing Involvement | Following is an analysis of certain cash flows between the Company and the conduits: Cash Proceeds In millions 2018 2017 2016 Sale of receivables $ — $ 1 $ 1 Collections reinvested in revolving receivables $ — $ 21,293 $ 21,652 Interests in conduits 1 $ 657 $ 9,462 $ 8,551 1. Presented in "Investing Activities" in the consolidated statements of cash flows in accordance with ASU 2016-15. See Note 2 for additional information. In connection with the review and implementation of ASU 2016-15, the Company also changed the prior year value of “Interests in conduits” due to additional interpretive guidance of the required method for calculating the cash received from beneficial interests in the conduits, including additional guidance from the SEC's Office of the Chief Accountant issued in the third quarter of 2018 that indicated an entity must evaluate daily transaction activity to calculate the value of cash received from beneficial interests in conduits. |
Quantitative Information about Transferred Financial Assets that have been Derecognized and Other Financial Assets Managed Together | Following is additional information related to the sale of receivables under these facilities: Trade Accounts Receivable Sold at Dec 31 In millions 2018 2017 Delinquencies on sold receivables still outstanding $ — $ 82 Trade accounts receivable outstanding and derecognized $ — $ 612 |
NOTES PAYABLE, LONG-TERM DEBT_2
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of notes payable | Notes Payable at Dec 31 In millions 2018 2017 Commercial paper $ 10 $ 231 Notes payable to banks and other lenders 288 250 Total notes payable $ 298 $ 481 Year-end average interest rates 8.28 % 4.37 % |
Schedule of long-term debt | Long-Term Debt at Dec 31 2018 Average Rate 2018 2017 Average Rate 2017 In millions Promissory notes and debentures: Final maturity 2018 — % $ — 5.78 % $ 339 Final maturity 2019 9.80 % 7 8.55 % 2,122 Final maturity 2020 4.46 % 1,547 4.46 % 1,547 Final maturity 2021 4.71 % 1,424 4.71 % 1,424 Final maturity 2022 3.50 % 1,373 3.50 % 1,373 Final maturity 2023 7.64 % 325 7.64 % 325 Final maturity 2024 and thereafter 5.73 % 8,859 5.92 % 6,857 Other facilities: U.S. dollar loans, various rates and maturities 3.59 % 4,533 2.44 % 4,564 Foreign currency loans, various rates and maturities 3.20 % 708 2.98 % 806 Medium-term notes, varying maturities through 2025 3.26 % 778 3.20 % 873 Tax-exempt bonds — % — 5.66 % 343 Capital lease obligations 371 277 Unamortized debt discount and issuance costs (334 ) (345 ) Long-term debt due within one year 1 (338 ) (748 ) Long-term debt $ 19,253 $ 19,757 1. Presented net of current portion of unamortized debt issuance costs. |
Schedule of maturities of long-term debt | Maturities of Long-Term Debt for Next Five Years at Dec 31, 2018 1 In millions 2019 $ 338 2020 $ 1,832 2021 $ 6,247 2022 $ 1,509 2023 $ 480 1. Assumes the option to extend a term loan facility related to the Dow Silicones ownership restructure will be exercised. |
Schedule of committed and available credit facilities | The following table summarizes the Company's credit facilities: Committed and Available Credit Facilities at Dec 31, 2018 In millions Effective Date Committed Credit Credit Available Maturity Date Interest Five Year Competitive Advance and Revolving Credit Facility October 2018 $ 5,000 $ 5,000 October 2023 Floating rate Bilateral Revolving Credit Facility August 2015 100 100 March 2019 Floating rate Bilateral Revolving Credit Facility August 2015 100 100 October 2019 Floating rate Bilateral Revolving Credit Facility August 2015 100 100 March 2020 Floating rate Bilateral Revolving Credit Facility August 2015 280 280 March 2020 Floating rate Bilateral Revolving Credit Facility August 2015 100 100 March 2020 Floating rate Bilateral Revolving Credit Facility August 2015 200 200 March 2020 Floating rate Term Loan Facility 1 February 2016 4,500 — December 2021 Floating rate Bilateral Revolving Credit Facility May 2016 200 200 May 2020 Floating rate Bilateral Revolving Credit Facility July 2016 200 200 July 2020 Floating rate Bilateral Revolving Credit Facility August 2016 100 100 August 2020 Floating rate North American Securitization Facility September 2018 800 800 September 2019 Floating rate European Securitization Facility 2 October 2018 457 457 October 2020 Floating rate Total Committed and Available Credit Facilities $ 12,137 $ 7,637 1. Assumes the option to extend the Dow Silicones term loan facility will be exercised. 2. Equivalent to Euro 400 million . |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Environmental Loss Contingency Disclosure | The following table summarizes the activity in the Company's accrued obligations for environmental matters for the years ended December 31, 2018 and 2017 : Accrued Obligations for Environmental Matters 2018 2017 In millions Balance at Jan 1 $ 865 $ 904 Accrual adjustment 176 163 Payments against reserve (208 ) (219 ) Foreign currency impact (23 ) 17 Balance at Dec 31 $ 810 $ 865 |
Schedule of Guarantor Obligations | The following table provides a summary of the final expiration, maximum future payments and recorded liability reflected in the consolidated balance sheets for each type of guarantee: Guarantees Dec 31, 2018 Dec 31, 2017 In millions Final Expiration Maximum Future Payments Recorded Liability Final Expiration Maximum Future Payments Recorded Liability Guarantees 2023 $ 4,273 $ 22 2023 $ 4,434 $ 44 Residual value guarantees 2028 885 130 2027 889 135 Total guarantees $ 5,158 $ 152 $ 5,323 $ 179 |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum payments under leases with remaining non-cancelable terms in excess of one year are as follows: Minimum Lease Commitments at Dec 31, 2018 In millions 2019 $ 366 2020 329 2021 296 2022 269 2023 227 2024 and thereafter 855 Total $ 2,342 |
Schedule of Change in Asset Retirement Obligation | The following table shows changes in the aggregate carrying amount of the Company’s asset retirement obligations for the years ended December 31, 2018 and 2017 : Asset Retirement Obligations 2018 2017 In millions Balance at Jan 1 $ 100 $ 104 Additional accruals 9 2 Liabilities settled (3 ) (6 ) Accretion expense 3 5 Revisions in estimated cash flows — (9 ) Other — 4 Balance at Dec 31 $ 109 $ 100 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Other Share-based Compensation, Activity | The number of treasury shares issued to employees and non-employee directors under the Company’s stock-based compensation programs are summarized in the following table. See Note 22 for additional information on changes to the Company equity awards in connection with the Merger. Treasury Shares Issued Under Stock-Based Compensation Programs In thousands 2018 2017 1 2016 To employees and non-employee directors N/A 14,195 14,494 1. Reflects activity prior to the Merger. |
Schedule of Common Stock and Treasury Stock Outstanding Roll Forward | The following table provides a reconciliation of TDCC Common Stock activity, prior to the Merger, for the years ended December 31, 2017 and 2016: Shares of TDCC Common Stock Issued Held in Treasury In thousands Balance at Jan 1, 2016 1,242,795 125,853 Issued 1 — (14,494 ) Repurchased — 17,107 Preferred stock converted to common stock — (96,804 ) Balance at Dec 31, 2016 1,242,795 31,662 Issued 1 — (14,195 ) Converted to DowDuPont shares or canceled on Aug 31, 2017 2 (1,242,795 ) (17,467 ) Balance at Aug 31, 2017 — — 1. Shares issued to employees and non-employee directors under the Company's equity compensation plans. 2. Each share of TDCC Common Stock issued and outstanding immediately prior to the Merger was converted into one share of DowDuPont Common Stock; treasury shares were canceled as a result of the Merger. |
Comprehensive Income (Loss) | The following table summarizes the changes and after-tax balances of each component of AOCL for the years ended December 31, 2018 , 2017 and 2016 : Accumulated Other Comprehensive Loss Unrealized Gains (Losses) on Investments Cumulative Translation Adj Pension and Other Postretire Benefits Derivative Instruments Total Accum Other Comp Loss In millions 2016 Balance at Jan 1, 2016 $ 47 $ (1,737 ) $ (6,769 ) $ (208 ) $ (8,667 ) Other comprehensive income (loss) before reclassifications 32 (644 ) (1,354 ) 84 (1,882 ) Amounts reclassified from accumulated other comprehensive income (loss) (36 ) — 734 29 727 Net other comprehensive income (loss) $ (4 ) $ (644 ) $ (620 ) $ 113 $ (1,155 ) Balance at Dec 31, 2016 $ 43 $ (2,381 ) $ (7,389 ) $ (95 ) $ (9,822 ) 2017 Other comprehensive income (loss) before reclassifications 25 908 (23 ) 1 911 Amounts reclassified from accumulated other comprehensive income (loss) (71 ) (8 ) 414 (15 ) 320 Net other comprehensive income (loss) $ (46 ) $ 900 $ 391 $ (14 ) $ 1,231 Balance at Dec 31, 2017 $ (3 ) $ (1,481 ) $ (6,998 ) $ (109 ) $ (8,591 ) 2018 Balance at Jan 1, 2018 1 $ 17 $ (1,481 ) $ (6,998 ) $ (109 ) $ (8,571 ) Other comprehensive income (loss) before reclassifications (74 ) (221 ) (495 ) 4 (786 ) Amounts reclassified from accumulated other comprehensive income (loss) 7 (4 ) 455 71 529 Net other comprehensive income (loss) $ (67 ) $ (225 ) $ (40 ) $ 75 $ (257 ) Reclassification of stranded tax effects 2 $ (1 ) $ (107 ) $ (927 ) $ (22 ) $ (1,057 ) Balance at Dec 31, 2018 $ (51 ) $ (1,813 ) $ (7,965 ) $ (56 ) $ (9,885 ) 1. The beginning balance of "Unrealized gains (losses) on investments" was increased by $20 million to reflect the impact of adoption of ASU 2016-01. See Note 2 for additional information. 2. Amounts reclassified to retained earnings as a result of the adoption of ASU 2018-02. See Note 2 for additional information. The tax effects on the net activity related to each component of other comprehensive income (loss) for the years ended December 31, 2018 , 2017 and 2016 were as follows: Tax Benefit (Expense) 1 2018 2017 2016 In millions Unrealized gains (losses) on investments $ 17 $ 26 $ (2 ) Cumulative translation adjustments (6 ) (98 ) (171 ) Pension and other postretirement benefit plans (9 ) (213 ) 438 Derivative instruments (20 ) (3 ) (32 ) Tax benefit (expense) from income taxes related to other comprehensive income (loss) items $ (18 ) $ (288 ) $ 233 1. Prior year amounts have been updated to conform with the current year presentation. |
Reclassification out of Accumulated Other Comprehensive Income | A summary of the reclassifications out of AOCL for the years ended December 31, 2018 , 2017 and 2016 is provided as follows: Reclassifications Out of Accumulated Other Comprehensive Loss In millions 2018 2017 2016 Consolidated Statements of Income Classification Unrealized (gains) losses on investments $ 9 $ (110 ) $ (56 ) See (1) below Tax (benefit) expense (2 ) 39 20 See (2) below After tax $ 7 $ (71 ) $ (36 ) Cumulative translation adjustments $ (4 ) $ (8 ) $ — See (3) below Pension and other postretirement benefit plans $ 594 $ 607 $ 913 See (4) below Tax benefit (139 ) (193 ) (179 ) See (2) below After tax $ 455 $ 414 $ 734 Derivative instruments $ 89 $ (13 ) $ 34 See (5) below Tax benefit (18 ) (2 ) (5 ) See (2) below After tax $ 71 $ (15 ) $ 29 Total reclassifications for the period, after tax $ 529 $ 320 $ 727 1. "Net sales" and "Sundry income (expense) - net." 2. "Provision (credit) for income taxes on continuing operations." 3. "Sundry income (expense) - net." 4. These AOCL components are included in the computation of net periodic benefit cost of the Company's defined benefit pension and other postretirement benefit plans. See Note 21 for additional information. In the year ended December 31, 2016, $360 million was included in “Sundry income (expense) - net” ( zero impact to "Provision (credit) for income taxes on continuing operations") related to the Dow Silicones ownership restructure. See Note 6 for additional information. 5. "Cost of sales," "Sundry income (expense) - net" and "Interest expense and amortization of debt discount." |
NONCONTROLLING INTERESTS Noncon
NONCONTROLLING INTERESTS Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | The following table summarizes the activity for equity attributable to noncontrolling interests for the years ended December 31, 2018 , 2017 and 2016 : Noncontrolling Interests In millions 2018 2017 2016 1 Balance at Jan 1 $ 1,186 $ 1,242 $ 809 Net income attributable to noncontrolling interests - continuing operations 102 102 53 Net income attributable to noncontrolling interests - discontinued operations 32 28 33 Distributions to noncontrolling interests 2 (145 ) (109 ) (123 ) Acquisition of noncontrolling interests 3 — — 473 Deconsolidation of noncontrolling interests 4 — (119 ) — Cumulative translation adjustments (39 ) 41 (4 ) Other 2 1 1 Balance at Dec 31 $ 1,138 $ 1,186 $ 1,242 1. The 2016 activity presented in the table excludes a $202 million cash payment for the purchase of a noncontrolling interest, as the noncontrolling interest was classified as "Accrued and other current liabilities" in the consolidated balance sheets. 2. Distributions to noncontrolling interests is net of $27 million in 2018 ( $20 million in 2017 and $53 million in 2016 ) in dividends paid to a joint venture, which were reclassified to "Equity in earnings of nonconsolidated affiliates" in the consolidated statements of income, and include amounts attributable to discontinued operations. 3. Assumed in the ownership restructure of Dow Silicones. See Note 6 for additional information. 4. On June 30, 2017, the Company sold its ownership interest in the SKC Haas Display Films group of companies. |
PENSION PLANS AND OTHER POSTR_2
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Change in Projected Benefit Obligations, Plan Assets and Funded Status of All Significant Plans | Summarized information on the Company's pension and other postretirement benefit plans is as follows: Change in Projected Benefit Obligations, Plan Assets and Funded Status of All Significant Plans Defined Benefit Pension Plans Other Postretirement Benefits In millions 2018 2017 2018 2017 Change in projected benefit obligations: Benefit obligations at beginning of year $ 31,851 $ 30,280 $ 1,567 $ 1,835 Service cost 520 506 12 14 Interest cost 886 883 45 54 Plan participants' contributions 19 14 — — Actuarial changes in assumptions and experience (1,754 ) 1,804 (13 ) (198 ) Benefits paid (1,476 ) (1,440 ) (123 ) (151 ) Plan amendments 17 14 — — Acquisitions/divestitures/other 1 (45 ) 50 — — Effect of foreign exchange rates (418 ) 932 (10 ) 13 Termination benefits/curtailment cost/settlements 2 — (1,192 ) — — Benefit obligations at end of year $ 29,600 $ 31,851 $ 1,478 $ 1,567 Change in plan assets: Fair value of plan assets at beginning of year $ 23,401 $ 21,208 $ — $ — Actual return on plan assets (742 ) 2,500 — — Employer contributions 1,656 1,676 — — Plan participants' contributions 19 14 — — Benefits paid (1,476 ) (1,440 ) — — Acquisitions/divestitures/other 3 — (15 ) — — Effect of foreign exchange rates (314 ) 646 — — Settlements 4 — (1,188 ) — — Fair value of plan assets at end of year $ 22,544 $ 23,401 $ — $ — Funded status: U.S. plans with plan assets $ (4,066 ) $ (5,363 ) $ — $ — Non-U.S. plans with plan assets (2,041 ) (2,257 ) — — All other plans (695 ) (720 ) (1,478 ) (1,567 ) Plans of discontinued operations (254 ) (110 ) — — Funded status at end of year $ (7,056 ) $ (8,450 ) $ (1,478 ) $ (1,567 ) Amounts recognized in the consolidated balance sheets at Dec 31: Deferred charges and other assets $ 491 $ 548 $ — $ — Accrued and other current liabilities (50 ) (47 ) (131 ) (125 ) Pension and other postretirement benefits - noncurrent (7,227 ) (8,679 ) (1,347 ) (1,442 ) Liabilities of discontinued operations - current (270 ) (1 ) — — Liabilities of discontinued operations - noncurrent — (271 ) — — Net amount recognized $ (7,056 ) $ (8,450 ) $ (1,478 ) $ (1,567 ) Pretax amounts recognized in accumulated other comprehensive loss at Dec 31: Net loss (gain) $ 10,841 $ 10,899 $ (315 ) $ (326 ) Prior service credit (224 ) (265 ) — — Pretax balance in accumulated other comprehensive loss at end of year $ 10,617 $ 10,634 $ (315 ) $ (326 ) 1. The 2018 impact includes the divestiture of a business with pension benefit obligations of $37 million . The 2017 impact includes the reclassification of a China pension liability of $69 million from "Other noncurrent obligations" to "Pension and other postretirement benefits - noncurrent" and the divestiture of a South Korean company with pension benefit obligations of $25 million . 2. The 2017 impact includes the settlement of certain plan obligations for a U.S. non-qualified pension plan of $1,170 million required due to a change in control provision. The 2017 impact also includes the conversion of a South Korean pension plan of $22 million to a defined contribution plan. 3. The 2017 impact relates to the divestiture of a South Korean company. 4. The 2017 impact includes payments made of $1,170 million to settle certain plan obligations of a U.S. non-qualified pension plan required due to a change in control provision. The 2017 impact also includes payments made of $18 million to convert a South Korean pension plan to a defined contribution plan. |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets at Dec 31 2018 2017 In millions Accumulated benefit obligations $ 25,392 $ 27,248 Fair value of plan assets $ 18,902 $ 19,515 |
Schedule of Projected Benefit Obligations in Excess of Fair Value of Plan Assets | Pension Plans with Projected Benefit Obligations in Excess of Plan Assets at Dec 31 2018 2017 In millions Projected benefit obligations $ 26,599 $ 28,576 Fair value of plan assets $ 19,051 $ 19,578 |
Schedule of Net Benefit Costs | Net Periodic Benefit Costs for All Significant Plans for the Year Ended Dec 31 Defined Benefit Pension Plans Other Postretirement Benefits In millions 2018 2017 2016 2018 2017 2016 Net Periodic Benefit Costs: Service cost $ 520 $ 506 $ 463 $ 12 $ 14 $ 13 Interest cost 886 883 846 45 54 52 Expected return on plan assets (1,644 ) (1,548 ) (1,447 ) — — — Amortization of prior service credit (24 ) (25 ) (24 ) — — (3 ) Amortization of unrecognized (gain) loss 642 638 587 (24 ) (6 ) (7 ) Curtailment/settlement/other 1 — 683 (36 ) — — — Net periodic benefit costs $ 380 $ 1,137 $ 389 $ 33 $ 62 $ 55 Less: discontinued operations 101 105 97 3 3 3 Net periodic benefit costs - continuing operations $ 279 $ 1,032 $ 292 $ 30 $ 59 $ 52 Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss: Net (gain) loss $ 584 $ 845 $ 1,954 $ (13 ) $ (199 ) $ 14 Prior service cost 17 14 — — — — Amortization of prior service credit 24 25 24 — — 3 Amortization of unrecognized gain (loss) (642 ) (638 ) (587 ) 24 6 7 Settlement loss 2 — (687 ) — — — — Total recognized in other comprehensive (income) loss $ (17 ) $ (441 ) $ 1,391 $ 11 $ (193 ) $ 24 Total recognized in net periodic benefit cost and other comprehensive (income) loss $ 363 $ 696 $ 1,780 $ 44 $ (131 ) $ 79 1. The 2017 impact relates to the settlement of a U.S. non-qualified plan triggered by a change in control provision. The 2016 impact relates to the curtailment of benefits for certain participants of a Dow Silicones plan in the U.S. 2. The 2017 impact relates to the settlement of a U.S. non-qualified plan triggered by a change in control provision. |
Schedule of Expected Benefit Payments | Estimated Future Benefit Payments The estimated future benefit payments of continuing operations, reflecting expected future service, as appropriate, are presented in the following table: Estimated Future Benefit Payments at Dec 31, 2018 Defined Benefit Pension Plans Other Postretirement Benefits In millions 2019 $ 1,546 $ 133 2020 1,554 129 2021 1,580 129 2022 1,619 125 2023 1,656 120 2024-2028 8,596 519 Total $ 16,551 $ 1,155 |
Schedule of Allocation of Plan Assets | The weighted-average target allocation for plan assets of the Company's pension plans is summarized as follows: Target Allocation for Plan Assets at Dec 31, 2018 Target Allocation Asset Category Equity securities 36 % Fixed income securities 35 Alternative investments 28 Other investments 1 Total 100 % |
Schedule of Defined Benefit Plans Disclosures | The following table summarizes the bases used to measure the Company’s pension plan assets at fair value for the years ended December 31, 2018 and 2017 : Basis of Fair Value Measurements Dec 31, 2018 Dec 31, 2017 In millions Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 877 $ 818 $ 59 $ — $ 772 $ 671 $ 101 $ — Equity securities: U.S. equity securities 1 $ 3,493 $ 3,251 $ 241 $ 1 $ 3,755 $ 3,416 $ 339 $ — Non - U.S. equity securities 4,242 3,497 707 38 5,551 4,533 978 40 Total equity securities $ 7,735 $ 6,748 $ 948 $ 39 $ 9,306 $ 7,949 $ 1,317 $ 40 Fixed income securities: Debt - government-issued $ 4,751 $ 285 $ 4,466 $ — $ 4,596 $ 158 $ 4,437 $ 1 Debt - corporate-issued 2,929 411 2,518 — 3,300 351 2,935 14 Debt - asset-backed 90 — 89 1 101 — 100 1 Total fixed income securities $ 7,770 $ 696 $ 7,073 $ 1 $ 7,997 $ 509 $ 7,472 $ 16 Alternative investments: 2 Private market securities $ 1 $ — $ — $ 1 $ — $ — $ — $ — Real estate 19 19 — — 21 21 — — Derivatives - asset position 451 17 434 — 261 2 259 — Derivatives - liability position (506 ) (19 ) (487 ) — (305 ) (2 ) (303 ) — Total alternative investments $ (35 ) $ 17 $ (53 ) $ 1 $ (23 ) $ 21 $ (44 ) $ — Other investments 2 $ 380 $ 47 $ 333 $ — $ 273 $ 37 $ 236 $ — Subtotal $ 16,727 $ 8,326 $ 8,360 $ 41 $ 18,325 $ 9,187 $ 9,082 $ 56 Investments measured at net asset value: 2 Hedge funds $ 1,637 $ 1,595 Private market securities 2,196 1,390 Real estate 2,080 2,200 Total investments measured at net asset value $ 5,913 $ 5,185 Items to reconcile to fair value of plan assets: Pension trust receivables 3 $ 29 $ 27 Pension trust payables 4 (125 ) (136 ) Total $ 22,544 $ 23,401 1. No DowDuPont common stock was directly held at December 31, 2018 or December 31, 2017 . 2. The Company reviewed its fair value technique and elected to present assets valued at net asset value per share as a practical expedient outside of the fair value hierarchy. The assets are presented as "Investments measured at net asset value." 3. Primarily receivables for investment securities sold. 4. Primarily payables for investment securities purchased. |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | The following table summarizes the changes in the fair value of Level 3 pension plan assets for the years ended December 31, 2018 and 2017 : Fair Value Measurement of Level 3 Pension Plan Assets Equity Securities Fixed Income Securities Alternative Investments Other Investments Total In millions Balance at Jan 1, 2017, as previously reported $ 33 $ 17 $ 4,117 $ 95 $ 4,262 Reclassification of investments measured at net asset value 1 — — (4,061 ) (95 ) (4,156 ) Balance at Jan 1, 2017, as restated $ 33 $ 17 $ 56 $ — $ 106 Actual return on assets: Relating to assets sold during 2017 (1 ) — 5 — 4 Relating to assets held at Dec 31, 2017 5 1 (1 ) — 5 Purchases, sales and settlements, net 3 (2 ) (60 ) — (59 ) Balance at Dec 31, 2017 $ 40 $ 16 $ — $ — $ 56 Actual return on assets: Relating to assets sold during 2018 — 4 (1 ) 1 4 Relating to assets held at Dec 31, 2018 (3 ) (4 ) — — (7 ) Purchases, sales and settlements, net 2 (15 ) 2 (1 ) (12 ) Balance at Dec 31, 2018 $ 39 $ 1 $ 1 $ — $ 41 1. The Company reviewed its fair value technique and elected to present assets valued at net asset value per share as a practical expedient outside of the fair value hierarchy, including those classified as Level 3 pension plan assets. The assets are presented as "Investments measured at net asset value." |
Defined Benefit Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Assumptions Used | The weighted-average assumptions used to determine pension plan obligations and net periodic benefit costs for all plans are summarized in the table below: Weighted-Average Assumptions for All Pension Plans Benefit Obligations at Dec 31 Net Periodic Costs for the Year Ended 2018 2017 2018 2017 2016 Discount rate 3.69 % 3.17 % 3.17 % 3.52 % 3.85 % Interest crediting rate for applicable benefits 3.72 % 3.61 % 3.61 % 3.45 % 4.81 % Rate of compensation increase 3.84 % 3.88 % 3.88 % 3.90 % 4.04 % Expected return on plan assets — — 7.11 % 7.16 % 7.22 % The weighted-average assumptions used to determine pension plan obligations and net periodic benefit costs for U.S. plans are summarized in the table below: Weighted-Average Assumptions for U.S. Pension Plans Benefit Obligations at Dec 31 Net Periodic Costs for the Year Ended 2018 2017 2018 2017 2016 Discount rate 4.39 % 3.66 % 3.66 % 4.11 % 4.40 % Interest crediting rate for applicable benefits 4.50 % 4.50 % 4.50 % 4.50 % 4.50 % Rate of compensation increase 4.25 % 4.25 % 4.25 % 4.25 % 4.50 % Expected return on plan assets — — 7.92 % 7.91 % 7.77 % |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Assumptions Used | The weighted-average assumptions used to determine other postretirement benefit obligations and net periodic benefit costs for the U.S. plans are provided below: Weighted-Average Assumptions for U.S. Other Postretirement Benefits Plans Benefit Obligations at Dec 31 Net Periodic Costs for the Year Ended 2018 2017 2018 2017 2016 Discount rate 4.24 % 3.51 % 3.51 % 3.83 % 3.96 % Health care cost trend rate assumed for next year 6.50 % 6.75 % 6.75 % 7.00 % 7.25 % Rate to which the cost trend rate is assumed to decline (the ultimate health care cost trend rate) 5.00 % 5.00 % 5.00 % 5.00 % 5.00 % Year that the rate reaches the ultimate health care cost trend rate 2025 2025 2025 2025 2025 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The weighted-average assumptions used to calculate total stock-based compensation are included in the following table: Weighted-Average Assumptions 2018 2017 2016 Dividend yield 2.13 % 3.01 % 4.13 % Expected volatility 23.34 % 23.71 % 31.60 % Risk-free interest rate 2.83 % 1.28 % 1.12 % Expected life of stock options granted during period (years) 6.2 7.5 7.8 Life of Employee Stock Purchase Plan (months) — 3 4 |
Restricted Stock Issued | The following table shows the restricted stock issued under this plan: Restricted Stock Shares Issued (in thousands) Weighted-Average Fair Value Year 2018 36 $ 62.82 2017 33 $ 62.04 2016 32 $ 50.55 |
Employee Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation, Stock Options, Activity | The following table summarizes stock option activity for 2018 : Stock Options 2018 Shares in thousands Shares Exercise Price 1 Outstanding at Jan 1, 2018 26,628 $ 38.30 Granted 6,571 $ 71.43 Exercised (4,074 ) $ 30.65 Forfeited/Expired (279 ) $ 61.47 Outstanding at Dec 31, 2018 28,846 $ 46.70 Remaining contractual life in years 5.46 Aggregate intrinsic value in millions $ 327 Exercisable at Dec 31, 2018 21,813 $ 39.99 Remaining contractual life in years 4.40 Aggregate intrinsic value in millions $ 322 1. Weighted-average per share. Additional Information about Stock Options In millions, except per share amounts 2018 2017 2016 Weighted-average fair value per share of options granted $ 15.38 $ 14.44 $ 10.95 Total compensation expense for stock option plans $ 68 $ 37 $ 32 Related tax benefit $ 15 $ 14 $ 12 Total amount of cash received from the exercise of options $ 112 $ 310 $ 312 Total intrinsic value of options exercised 1 $ 160 $ 286 $ 153 Related tax benefit $ 36 $ 106 $ 57 1. Difference between the market price at exercise and the price paid by the employee to exercise the options. |
Deferred Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Nonvested Performance-based Units Activity | The Company grants restricted stock units to certain employees. The grants vest after a designated period of time, generally one to five years. The following table shows changes in nonvested RSUs: RSU Awards 2018 Shares in thousands Shares Grant Date Fair Value 1 Nonvested at Jan 1, 2018 13,346 $ 50.71 Granted 2,022 $ 71.46 Vested (5,409 ) $ 46.04 Canceled (224 ) $ 59.40 Nonvested at Dec 31, 2018 9,735 $ 57.41 1. Weighted-average per share. |
Schedule of value of deferred stock | Additional Information about RSUs In millions, except per share amounts 2018 2017 2016 Weighted-average fair value per share of RSUs granted $ 71.46 $ 61.29 $ 46.25 Total fair value of RSUs vested 1 $ 382 $ 179 $ 166 Related tax benefit $ 86 $ 66 $ 61 Total compensation expense for RSU awards $ 144 $ 178 $ 97 Related tax benefit $ 32 $ 66 $ 36 1. Includes the fair value of shares vested in prior years and delivered in the reporting year. |
Performance Deferred Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | The following table shows the PSU awards granted: PSU Awards Target Shares Granted 1 Grant Date Fair Value 2 Shares in thousands Year Performance Period 2017 Sep 1, 2017 – Aug 31, 2019 232 $ 71.16 2017 3 Jan 1, 2017 – Dec 31, 2019 1,728 $ 81.99 2016 3 Jan 1, 2016 – Dec 31, 2018 2,283 $ 52.68 1. At the end of the performance period, the actual number of shares issued can range from zero to 200% of target shares granted. 2. Weighted-average per share. 3. Converted to RSUs as a result of the Merger. |
Schedule of Additional Information About Performance Deferred Stock | There was no activity in nonvested PSUs in 2018. At January 1, 2018 and December 31, 2018, there were 232,000 target shares of nonvested PSUs outstanding with a grant date fair value of $71.16 . Additional Information about PSUs In millions, except share amounts 2018 2017 2016 Total fair value of PSUs vested and delivered 1 $ — $ 202 $ 103 Related tax benefit $ — $ 75 $ 38 Total compensation expense for PSU awards $ 12 $ 106 $ 125 Related tax benefit $ 3 $ 39 $ 46 Shares of PSUs settled in cash (in thousands) 2 — 616 861 Total cash paid to settle PSUs 3 $ — $ 38 $ 40 1. Includes the fair value of shares vested in prior years and delivered in the reporting year. 2. PSU awards vested in prior years and delivered in the reporting year. 3. Cash paid to certain executive employees for PSU awards vested in prior periods and delivered in the reporting year, equal to the value of the stock award on the date of delivery. |
Employees' Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity | Additional Information about Employee Stock Purchase Plan In millions, except per share amounts 2018 2017 2016 Weighted-average fair value per share of purchase rights granted $ — $ 10.70 $ 3.40 Total compensation expense for ESPP $ — $ 38 $ 7 Related tax benefit $ — $ 14 $ 3 Total amount of cash received from the exercise of purchase rights $ — $ 179 $ 86 Total intrinsic value of purchase rights exercised 1 $ — $ 48 $ 23 Related tax benefit $ — $ 18 $ 9 1. Difference between the market price at exercise and the price paid by the employee to exercise the purchase rights. |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, All Other Investments [Abstract] | |
Fair Value of Financial Instruments | The following table summarizes the fair value of financial instruments at December 31, 2018 and 2017 : Fair Value of Financial Instruments at Dec 31 2018 2017 In millions Cost Gain Loss Fair Value Cost Gain Loss Fair Value Cash equivalents $ 566 $ — $ — $ 566 $ 2,280 $ — $ — $ 2,280 Marketable securities $ 100 $ — $ — $ 100 $ 4 $ — $ — $ 4 Other investments: Debt securities: Government debt 1 $ 714 $ 9 $ (23 ) $ 700 $ 637 $ 13 $ (11 ) $ 639 Corporate bonds 1,026 20 (63 ) 983 704 32 (3 ) 733 Total debt securities $ 1,740 $ 29 $ (86 ) $ 1,683 $ 1,341 $ 45 $ (14 ) $ 1,372 Equity securities 2 16 1 (1 ) 16 164 2 (26 ) 140 Total other investments $ 1,756 $ 30 $ (87 ) $ 1,699 $ 1,505 $ 47 $ (40 ) $ 1,512 Total cash equivalents, marketable securities and other investments $ 2,422 $ 30 $ (87 ) $ 2,365 $ 3,789 $ 47 $ (40 ) $ 3,796 Long-term debt including debt due within one year 3 $ (19,591 ) $ 351 $ (972 ) $ (20,212 ) $ (20,505 ) $ 6 $ (2,104 ) $ (22,603 ) Derivatives relating to: Interest rates $ — $ — $ (64 ) $ (64 ) $ — $ — $ (4 ) $ (4 ) Foreign currency — 120 (43 ) 77 — 22 (112 ) (90 ) Commodities 4 — 91 (178 ) (87 ) — 130 (256 ) (126 ) Total derivatives $ — $ 211 $ (285 ) $ (74 ) $ — $ 152 $ (372 ) $ (220 ) 1. U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. 2. Equity securities with a readily determinable fair value. Presented in accordance with ASU 2016-01. See Note 2 for additional information. 3. Cost includes fair value hedge adjustments of $18 million at December 31, 2018 and $19 million at December 31, 2017 on $2,290 million of debt at December 31, 2018 and $2,390 million of debt at December 31, 2017 . 4. Presented net of cash collateral |
Investing Results | The following table provides the investing results from available-for-sale securities for the years ended December 31, 2018 , 2017 and 2016 . Investing Results 1 In millions 2018 2017 2016 Proceeds from sales of available-for-sale securities $ 1,053 $ 245 $ 396 Gross realized gains $ 21 $ 5 $ 15 Gross realized losses $ 30 $ — $ 1 1. Prior period amounts were updated to conform with the current year presentation as a result of the adoption of ASU 2016-01. See Note 2 for additional information. |
Contractual Maturities of Debt Securities | The following table summarizes the contractual maturities of the Company’s investments in debt securities: Contractual Maturities of Debt Securities at Dec 31, 2018 1 Amortized Cost Fair Value In millions Within one year $ 124 $ 124 One to five years 455 444 Six to ten years 717 683 After ten years 444 432 Total $ 1,740 $ 1,683 1. Includes marketable securities with maturities of less than one year. |
Fair Value and Gross Unrealized Losses of Investments Temporarily Impaired | The following tables provide the fair value and gross unrealized losses of the Company’s investments in debt securities that were deemed to be temporarily impaired at December 31, 2018 and 2017 , aggregated by investment category: Temporarily Impaired Debt Securities at Dec 31, 2018 Less than 12 months 12 months or more Total Fair Value Unrealized Losses Fair Unrealized Fair Value Unrealized Losses In millions Government debt 1 $ 287 $ (17 ) $ 187 $ (6 ) $ 474 $ (23 ) Corporate bonds 724 (58 ) 64 (5 ) 788 (63 ) Total temporarily impaired debt securities $ 1,011 $ (75 ) $ 251 $ (11 ) $ 1,262 $ (86 ) 1. U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities' obligations. Temporarily Impaired Debt Securities at Dec 31, 2017 Less than 12 months 12 months or more Total Fair Value Unrealized Losses Fair Unrealized Fair Value Unrealized Losses In millions Government debt 1 $ 295 $ (4 ) $ 151 $ (7 ) $ 446 $ (11 ) Corporate bonds 163 (2 ) 19 (1 ) 182 (3 ) Total temporarily impaired debt securities $ 458 $ (6 ) $ 170 $ (8 ) $ 628 $ (14 ) 1. U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities' obligations. |
Schedule of Notional Amounts of Outstanding Derivative Positions | The notional amounts of the Company's derivative instruments presented on a net basis at December 31, 2018 and 2017 , were as follows: Notional Amounts - Net Dec 31, 2018 Dec 31, 2017 In millions Derivatives designated as hedging instruments: Interest rate swaps $ 2,049 $ 185 Foreign currency contracts $ 4,457 $ 4,343 Derivatives not designated as hedging instruments: Interest rate swaps $ 5 $ — Foreign currency contracts $ 19,285 $ 12,041 The notional amounts of the Company's commodity derivatives at December 31, 2018 and 2017 , were as follows: Commodity Notionals - Net Dec 31, 2018 Dec 31, 2017 Notional Volume Unit Derivatives designated as hedging instruments: Hydrocarbon derivatives 39.9 71.3 million barrels of oil equivalent Derivatives not designated as hedging instruments: Hydrocarbon derivatives 1.2 4.1 million barrels of oil equivalent Power derivatives 73.9 — thousands of megawatt hours |
Schedule Fair Values of Derivative Instruments | The following tables provide the fair value and gross balance sheet classification of derivative instruments at December 31, 2018 and 2017 : Fair Value of Derivative Instruments Dec 31, 2018 In millions Balance Sheet Classification Gross Counterparty and Cash Collateral Netting 1 Net Amounts Included in the Consolidated Balance Sheets Asset derivatives: Derivatives designated as hedging instruments: Foreign currency contracts Other current assets $ 98 $ (42 ) $ 56 Commodity contracts Other current assets 47 (13 ) 34 Commodity contracts Deferred charges and other assets 18 (3 ) 15 Total $ 163 $ (58 ) $ 105 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets $ 128 $ (64 ) $ 64 Commodity contracts Other current assets 41 (1 ) 40 Commodity contracts Deferred charges and other assets 4 (2 ) 2 Total $ 173 $ (67 ) $ 106 Total asset derivatives $ 336 $ (125 ) $ 211 Liability derivatives: Derivatives designated as hedging instruments: Interest rate swaps Other noncurrent obligations $ 64 $ — $ 64 Foreign currency contracts Accrued and other current liabilities 46 (42 ) 4 Commodity contracts Accrued and other current liabilities 111 (18 ) 93 Commodity contracts Other noncurrent obligations 86 (9 ) 77 Total $ 307 $ (69 ) $ 238 Derivatives not designated as hedging instruments: Foreign currency contracts Accrued and other current liabilities $ 103 $ (64 ) $ 39 Commodity contracts Accrued and other current liabilities 7 (4 ) 3 Commodity contracts Other noncurrent obligations 8 (3 ) 5 Total $ 118 $ (71 ) $ 47 Total liability derivatives $ 425 $ (140 ) $ 285 1. Counterparty and cash collateral amounts represent the estimated net settlement amount when applying netting and set-off rights included in master netting arrangements between the Company and its counterparties and the payable or receivable for cash collateral held or placed with the same counterparty. Fair Value of Derivative Instruments Dec 31, 2017 In millions Balance Sheet Classification Gross Counterparty and Cash Collateral Netting 1 Net Amounts Included in the Consolidated Balance Sheets Asset derivatives: Derivatives designated as hedging instruments: Foreign currency contracts Other current assets $ 51 $ (46 ) $ 5 Commodity contracts Other current assets 20 (4 ) 16 Commodity contracts Deferred charges and other assets 70 (5 ) 65 Total $ 141 $ (55 ) $ 86 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets $ 75 $ (58 ) $ 17 Commodity contracts Other current assets 50 (5 ) 45 Commodity contracts Deferred charges and other assets 7 (3 ) 4 Total $ 132 $ (66 ) $ 66 Total asset derivatives $ 273 $ (121 ) $ 152 Liability derivatives: Derivatives designated as hedging instruments: Interest rate swaps Other noncurrent obligations $ 4 $ — $ 4 Foreign currency contracts Accrued and other current liabilities 109 (46 ) 63 Commodity contracts Accrued and other current liabilities 96 (15 ) 81 Commodity contracts Other noncurrent obligations 143 (12 ) 131 Total $ 352 $ (73 ) $ 279 Derivatives not designated as hedging instruments: Foreign currency contracts Accrued and other current liabilities $ 107 $ (58 ) $ 49 Commodity contracts Accrued and other current liabilities 45 (6 ) 39 Commodity contracts Other noncurrent obligations 8 (3 ) 5 Total $ 160 $ (67 ) $ 93 Total liability derivatives $ 512 $ (140 ) $ 372 1. Counterparty and cash collateral amounts represent the estimated net settlement amount when applying netting and set-off rights included in master netting arrangements between the Company and its counterparties and the payable or receivable for cash collateral held or placed with the same counterparty. |
Derivative Instruments, Gain (Loss) | Effect of Derivative Instruments Amount of gain (loss) recognized in OCI 1 Amount of gain (loss) recognized in income 2 In millions 2018 2017 2016 2018 2017 2016 Income Statement Classification Derivatives designated as hedging instruments: Fair value hedges: Interest rate swaps $ — $ — $ — $ — $ (2 ) $ — Interest expense and amortization of debt discount 3 Cash flow hedges: Interest rate swaps 26 2 2 (3 ) 4 6 Interest expense and amortization of debt discount Foreign currency contracts 19 (30 ) 8 (18 ) 7 (5 ) Cost of sales Foreign currency contracts (3 ) (5 ) 25 — (17 ) (13 ) Sundry income (expense) - net Commodity contracts (46 ) 37 57 (69 ) 10 (23 ) Cost of sales Net investment hedges: Foreign currency contracts 116 (73 ) 5 — — — Total derivatives designated as hedging instruments $ 112 $ (69 ) $ 97 $ (90 ) $ 2 $ (35 ) Derivatives not designated as hedging instruments: Foreign currency contracts $ — $ — $ — $ 101 $ (289 ) $ (180 ) Sundry income (expense) - net Commodity contracts — — — (12 ) (9 ) 6 Cost of sales Total derivatives not designated as hedging instruments $ — $ — $ — $ 89 $ (298 ) $ (174 ) Total derivatives $ 112 $ (69 ) $ 97 $ (1 ) $ (296 ) $ (209 ) 1. OCI is defined as other comprehensive income (loss). 2. Pretax amounts. 3. Gain (loss) recognized in income of derivatives is offset by gain (loss) recognized in income of the hedged item. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes the bases used to measure certain assets and liabilities at fair value on a recurring basis: Basis of Fair Value Measurements on a Recurring Basis Dec 31, 2018 Dec 31, 2017 In millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets at fair value: Cash equivalents 1 $ — $ 566 $ — $ 566 $ — $ 2,280 $ — $ 2,280 Marketable securities — 100 — 100 — 4 — 4 Interests in trade accounts receivable conduits 2 — — — — — — 677 677 Equity securities 3 16 — — 16 88 52 — 140 Debt securities: 3 Government debt 4 — 700 — 700 — 639 — 639 Corporate bonds — 983 — 983 — 733 — 733 Derivatives relating to: 5 Foreign currency — 226 — 226 — 126 — 126 Commodities 17 93 — 110 47 100 — 147 Total assets at fair value $ 33 $ 2,668 $ — $ 2,701 $ 135 $ 3,934 $ 677 $ 4,746 Liabilities at fair value: Long-term debt including debt due within one year 6 $ — $ 20,212 $ — $ 20,212 $ — $ 22,603 $ — $ 22,603 Derivatives relating to: 5 Interest rates — 64 — 64 — 4 — 4 Foreign currency — 149 — 149 — 216 — 216 Commodities 23 189 — 212 31 261 — 292 Total liabilities at fair value $ 23 $ 20,614 $ — $ 20,637 $ 31 $ 23,084 $ — $ 23,115 1. Treasury bills, time deposits, and money market funds included in "Cash and cash equivalents" in the consolidated balance sheets and held at amortized cost, which approximates fair value. 2. Included in "Accounts and notes receivable – Other" in the consolidated balance sheets. See Note 16 for additional information on transfers of financial assets. 3. The Company’s investments in debt securities, which are primarily available-for-sale, and equity securities are included in “Other investments” in the consolidated balance sheets. 4. U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. 5. See Note 23 for the classification of derivatives in the consolidated balance sheets. 6. See Note 23 for information on fair value measurements of long-term debt. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes the changes in fair value measurements using Level 3 inputs for the years ended December 31, 2018 and 2017 : Fair Value Measurements Using Level 3 Inputs for Interests Held in Trade Accounts Receivable Conduits 1 2018 2017 In millions Balance at Jan 1 $ 677 $ 1,237 Gain (loss) included in earnings 2 3 (8 ) Purchases 3 — 8,910 Settlements 3, 4 (680 ) (9,462 ) Balance at Dec 31 $ — $ 677 1. Included in "Accounts and notes receivable – Other" in the consolidated balance sheets. 2. Included in "Selling, general and administrative expenses" in the consolidated statements of income. 3. Presented in accordance with ASU 2016-15. See Note 2 for additional information. In connection with the review and implementation of ASU 2016-15, the Company also changed the prior year value of “Purchases” and "Settlements" due to additional interpretive guidance of the required method for calculating the cash received from beneficial interests in the conduits, including additional guidance from the SEC's Office of the Chief Accountant issued in the third quarter of 2018 that indicated an entity must evaluate daily transaction activity to calculate the value of cash received from beneficial interests in conduits. 4. Includes noncash transactions of $23 million for the year ended December 31, 2018 . |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | The following table summarizes the bases used to measure certain assets at fair value on a nonrecurring basis in the consolidated balance sheets in 2018 , 2017 and 2016 : Basis of Fair Value Measurements on a Nonrecurring Basis at Dec 31 (Level 1) (Level 3) Total Losses In millions 2018 Assets at fair value: Long-lived assets and other assets $ — $ — $ (67 ) 2017 Assets at fair value: Long-lived assets, intangible assets, other assets and equity method investments $ — $ 61 $ (955 ) Goodwill $ — $ — $ (1,491 ) 2016 Assets at fair value: Long-lived assets, other assets and equity method investments $ 46 $ — $ (296 ) |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entity, Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities | The following table summarizes the carrying amounts of these entities’ assets and liabilities included in the Company’s consolidated balance sheets at December 31, 2018 and 2017 : Assets and Liabilities of Consolidated VIEs at Dec 31 In millions 2018 2017 Cash and cash equivalents $ 71 $ 86 Other current assets 101 120 Net property 683 855 Other noncurrent assets 14 13 Total assets 1 $ 869 $ 1,074 Current liabilities $ 307 $ 268 Long-term debt 75 249 Other noncurrent obligations 14 21 Total liabilities 2 $ 396 $ 538 1. All assets were restricted at December 31, 2018 and 2017 . 2. All liabilities were nonrecourse at December 31, 2018 and 2017 . |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Balances due to or due from nonconsolidated affiliates at December 31, 2018 and 2017 were as follows: Balances Due To or Due From Nonconsolidated Affiliates at Dec 31 2018 2017 In millions Accounts and notes receivable - Other $ 556 $ 417 Noncurrent receivables 8 282 Total assets $ 564 $ 699 Accounts payable - Other $ 1,347 $ 1,271 The following table presents amounts due to or due from DuPont and its affiliates at December 31, 2018: Balances Due To or Due From DuPont and its Affiliates Dec 31, 2018 Dec 31, 2017 In millions Accounts and notes receivable - Other $ 89 $ 12 Accounts payable - Other $ 19 $ 11 The following table presents revenue earned and expenses incurred related to transactions with DuPont and its affiliates: Sales to DuPont and its Affiliates 2018 In millions Net sales $ 55 Cost of sales $ 42 |
SEGMENTS AND GEOGRAPHIC REGIO_2
SEGMENTS AND GEOGRAPHIC REGIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Sales are attributed to geographic regions based on customer location; long-lived assets are attributed to geographic regions based on asset location. Geographic Region Information United States EMEAI Rest of World Total In millions 2018 Sales to external customers $ 16,613 $ 17,406 $ 15,585 $ 49,604 Long-lived assets $ 14,750 $ 2,657 $ 4,011 $ 21,418 2017 Sales to external customers $ 15,316 $ 15,226 $ 13,188 $ 43,730 Long-lived assets $ 14,771 $ 2,547 $ 4,266 $ 21,584 2016 Sales to external customers $ 12,911 $ 12,238 $ 11,115 $ 36,264 Long-lived assets $ 12,906 $ 2,263 $ 4,992 $ 20,161 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Segment Information Perf. Materials & Coatings Ind. Interm. & Infrast. Pack. & Spec. Plastics Corp. Total In millions 2018 Net sales $ 9,677 $ 15,447 $ 24,195 $ 285 $ 49,604 Pro forma net sales 9,865 15,465 24,237 285 49,852 Restructuring and asset related charges - net 1 21 11 46 143 221 Equity in earnings (losses) of nonconsolidated affiliates 4 284 287 (20 ) 555 Pro forma Operating EBIT 2 1,246 1,767 3,593 (370 ) 6,236 Depreciation and amortization 888 607 1,385 29 2,909 Total assets 3 16,050 14,092 30,279 3,378 63,799 Investments in nonconsolidated affiliates 99 1,850 1,278 93 3,320 Capital expenditures 427 433 1,231 — 2,091 2017 Net sales $ 8,892 $ 12,951 $ 21,504 $ 383 $ 43,730 Pro forma net sales 8,892 12,951 22,546 383 44,772 Restructuring, goodwill impairment and asset related charges - net 1 1,578 17 716 428 2,739 Equity in earnings (losses) of nonconsolidated affiliates 40 172 190 (8 ) 394 Pro forma Operating EBIT 2 817 1,470 3,712 (422 ) 5,577 Depreciation and amortization 885 572 1,055 34 2,546 Total assets 3 17,483 14,115 30,633 4,342 66,573 Investments in nonconsolidated affiliates 103 1,700 1,184 120 3,107 Capital expenditures 463 310 2,034 — 2,807 2016 Net sales $ 6,476 $ 11,100 $ 18,404 $ 284 $ 36,264 Restructuring and asset related charges - net 1 42 83 10 444 579 Asbestos-related charge 4 — — — 1,113 1,113 Equity in earnings (losses) of nonconsolidated affiliates 97 (18 ) 137 (29 ) 187 Operating EBIT 5 260 743 3,855 (354 ) 4,504 Depreciation and amortization 678 620 903 24 2,225 Total assets 3 17,731 13,739 23,051 5,837 60,358 Investments in nonconsolidated affiliates 280 1,632 853 209 2,974 Capital expenditures 435 262 2,792 — 3,489 1. See Note 8 for information regarding the Company's restructuring programs, goodwill impairment and other asset related charges. 2. A reconciliation of "Income (loss) from continuing operations, net of tax" to pro forma Operating EBIT is provided below. 3. Excludes assets of discontinued operations of $19,900 million , $19,279 million and $19,153 million for 2018, 2017 and 2016, respectively. 4. See Note 18 for information regarding the asbestos-related charge. 5. A reconciliation of "Income from continuing operations, net of tax" to Operating EBIT is provided on the following page. |
Reconciliation of income from continuing operations, net of tax to Operating EBIT [Table Text Block] | Reconciliation of "Income (loss) from continuing operations, net of tax" to Pro Forma Operating EBIT 2018 2017 In millions Income (loss) from continuing operations, net of tax $ 2,940 $ (1,287 ) + Provision for income taxes on continuing operations 809 1,524 Income from continuing operations before income taxes $ 3,749 $ 237 - Interest income 82 66 + Interest expense and amortization of debt discount 1,063 914 + Pro forma adjustments 1 180 1,120 - Significant items (1,326 ) (3,372 ) Pro forma Operating EBIT $ 6,236 $ 5,577 1. Pro forma adjustments include: (1) the margin impact of various manufacturing, supply and service related agreements entered into with DowDuPont and Corteva in connection with the separation which provide for different pricing than the historical intercompany and intracompany pricing practices of TDCC and DuPont (including for 2018 only), (2) the inclusion of ECP for the period of January 1, 2017 through August 31, 2017, (3) the removal of the amortization of ECP's inventory step-up recognized in connection with the Merger (4) the elimination of the impact of events directly attributable to the Merger, internal reorganization and business realignment, separation, distribution and other related transactions (e.g., one-time transaction costs) and (5) the elimination of the effect of a consummated divestiture agreed to with certain regulatory agencies as a condition of approval for the Merger. Reconciliation of "Income from continuing operations, net of tax" to Operating EBIT 2016 In millions Income from continuing operations, net of tax $ 1,478 + Credit for income taxes on continuing operations (218 ) Income from continuing operations before income taxes $ 1,260 - Interest income 75 + Interest expense and amortization of debt discount 827 - Significant items (2,492 ) Operating EBIT $ 4,504 |
Schedule of significant items [Table Text Block] | The following tables summarize the pretax impact of significant items by segment that are excluded from pro forma Operating EBIT and Operating EBIT: Significant Items by Segment for 2018 Perf. Materials & Coatings Ind. Interm. & Infrast. Pack. & Spec. Plastics Corp. Total In millions Impact of Dow Silicones ownership restructure 1 $ (20 ) $ — $ — $ — $ (20 ) Integration and separation costs 2 — — — (1,074 ) (1,074 ) Restructuring and asset related charges - net 3 (21 ) (11 ) (46 ) (120 ) (198 ) Gain on divestiture 4 — 20 — — 20 Loss on early extinguishment of debt 5 — — — (54 ) (54 ) Total $ (41 ) $ 9 $ (46 ) $ (1,248 ) $ (1,326 ) 1. Includes a loss related to a post-closing adjustment related to the Dow Silicones ownership restructure. 2. Costs related to post-Merger integration and separation and distribution activities, and costs related to the Dow Silicones ownership restructure. 3. Includes Board approved restructuring plans and asset-related charges, which include other asset impairments. See Note 8 for additional information. 4. Includes a gain related to the Company's sale of its equity interest in MEGlobal. 5. The Company retired outstanding notes payable resulting in a loss on early extinguishment. See Note 17 for additional information. Significant Items by Segment for 2017 Perf. Materials & Coatings Ind. Interm. & Infrast. Pack. & Spec. Plastics Corp. Total In millions Litigation related charges, awards and adjustments 1 $ — $ — $ 137 $ — $ 137 Integration and separation costs 2 — — — (716 ) (716 ) Restructuring, goodwill impairment and asset related charges - net 3 (1,578 ) (17 ) (716 ) (431 ) (2,742 ) Gain on divestiture 4 — — — 7 7 Transaction costs and productivity actions 5 — — — (58 ) (58 ) Total $ (1,578 ) $ (17 ) $ (579 ) $ (1,198 ) $ (3,372 ) 1. Includes a gain associated with a patent infringement matter with Nova. See Note 18 for additional information. 2. Costs related to post-Merger integration, separation and distribution activities, and costs related to the Dow Silicones ownership restructure. 3. Includes Board approved restructuring plans, goodwill impairment and asset-related charges, which includes other asset impairments. See Note 8 for additional information. 4. Includes post-closing adjustments related to the split-off of the Company's chlorine value chain. 5. Includes implementation costs associated with the Company's restructuring programs and other productivity actions. Significant Items by Segment for 2016 Perf. Materials & Coatings Ind. Interm. & Infrast. Pack. & Spec. Plastics Corp. Total In millions Impact of Dow Silicones ownership restructure 1 $ 1,389 $ — $ — $ — $ 1,389 Litigation related charges, awards and adjustments 2 16 (1,235 ) — — (1,219 ) Asbestos-related charge 3 — — — (1,113 ) (1,113 ) Integration and separation costs 4 — — — (349 ) (349 ) Restructuring and asset related charges - net 5 (42 ) (83 ) (10 ) (444 ) (579 ) Loss on divestitures 6 — — — (14 ) (14 ) Environmental charges 7 — (1 ) (2 ) (292 ) (295 ) Transaction costs and productivity actions 8 — — — (195 ) (195 ) Charge for the termination of a terminal use agreement 9 — — (117 ) — (117 ) Total $ 1,363 $ (1,319 ) $ (129 ) $ (2,407 ) $ (2,492 ) 1. Includes a non-taxable gain of $1,617 million related to the Dow Silicones ownership restructure; a $213 million charge for the fair value step-up of Dow Silicones' inventories; and, a pretax loss of $15 million related to the early redemption of debt incurred by Dow Silicones. See Note 6 for additional information. 2. Includes a loss of $1,235 million related to the Company's settlement of the urethane matters class action lawsuit and the opt-out cases litigation and a gain of $16 million related to a decrease in Dow Silicones' implant liability. See Note 18 for additional information. 3. Pretax charge related to the Company's election to change its method of accounting for asbestos-related defense costs from expensing as incurred to estimating and accruing a liability. As a result of this accounting policy change, the Company recorded a pretax charge of $1,009 million for asbestos-related defense costs through the terminal date of 2049. The Company also recorded a pretax charge of $104 million to increase the asbestos-related liability for pending and future claims through the terminal date of 2049. See Note 18 for additional information. 4. Costs related to the Merger and the ownership restructure of Dow Silicones. 5. Includes the Company's restructuring activities. Also reflects a pretax charge of $143 million for a partial impairment of the Company’s investment in AFSI. See Note 8 for additional information. 6. Includes a charge of $20 million for post-closing adjustments on the divestiture of AgroFresh and a gain of $6 million for post-closing adjustments on the split-off of the chlorine value chain. 7. Pretax charge for environmental remediation activities at a number of the Company's locations, primarily resulting from the culmination of negotiations with regulators and/or final agency approval. See Note 18 for additional information. 8. Includes implementation costs associated with the Company's restructuring programs and other productivity actions. Also includes a charge of $33 million for a retained litigation matter related to the chlorine value chain. 9. Pretax charge related to the Company's termination of a terminal use agreement. |
SELECTED QUARTERLY FINANCIAL _2
SELECTED QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | 2018 In millions, except per share amounts (Unaudited) 1st 2nd 3rd 4th Year Net sales $ 12,237 $ 12,789 $ 12,634 $ 11,944 $ 49,604 Cost of sales $ 9,980 $ 10,540 $ 10,456 $ 10,098 $ 41,074 Gross margin $ 2,257 $ 2,249 $ 2,178 $ 1,846 $ 8,530 Restructuring, goodwill impairment and asset related charges - net 1 $ 87 $ 40 $ 48 $ 46 $ 221 Integration and separation costs $ 224 $ 262 $ 313 $ 380 $ 1,179 Income from continuing operations, net of tax $ 925 $ 810 $ 714 $ 491 $ 2,940 Income from discontinued operations net of tax $ 514 $ 554 $ 335 $ 432 $ 1,835 Net income 2 $ 1,439 $ 1,364 $ 1,049 $ 923 $ 4,775 Net income attributable to Dow Inc. and The Dow Chemical Company $ 1,404 $ 1,333 $ 1,013 $ 891 $ 4,641 Earnings per common share from continuing operations - basic 3 $ 1.21 $ 1.05 $ 0.91 $ 0.63 $ 3.80 Earnings per common share from continuing operations - diluted 3 $ 1.21 $ 1.05 $ 0.91 $ 0.63 $ 3.80 1. See Note 8 for additional information. 2. Includes tax adjustments related to The Act, enacted on December 22, 2017. See Note 10 for additional information. 3. Earnings per common share amounts relate only to Dow Inc. as TDCC common shares are not publicly traded and are all owned by Dow Inc. 2017 In millions, except per share amounts (Unaudited) 1st 2nd 3rd 4th Year Net sales $ 10,124 $ 10,554 $ 10,991 $ 12,061 $ 43,730 Cost of sales $ 8,346 $ 8,703 $ 8,979 $ 10,322 $ 36,350 Gross margin $ 1,778 $ 1,851 $ 2,012 $ 1,739 $ 7,380 Restructuring, goodwill impairment and asset related charges (credits) - net 1 $ — $ (12 ) $ 117 $ 2,634 $ 2,739 Integration and separation costs $ 109 $ 136 $ 290 $ 263 $ 798 Income (loss) from continuing operations, net of tax $ 614 $ 812 $ 505 $ (3,218 ) $ (1,287 ) Income from discontinued operations, net of tax $ 301 $ 548 $ 296 $ 737 $ 1,882 Net income (loss) 2 $ 915 $ 1,360 $ 801 $ (2,481 ) $ 595 Net income (loss) attributable to Dow Inc. and The Dow Chemical Company $ 888 $ 1,322 $ 779 $ (2,524 ) $ 465 Earnings (loss) per common share from continuing operations - basic 3 $ 0.81 $ 1.04 $ 0.64 $ (4.36 ) $ (1.88 ) Earnings (loss) per common share from continuing operations - diluted 3 $ 0.80 $ 1.03 $ 0.64 $ (4.36 ) $ (1.88 ) 1. See Note 8 for additional information. 2. See Notes 7 , 9 , 10 , 18 and 21 for additional information on items materially impacting "Net income (loss)." The fourth quarter of 2017 included: tax adjustments related to The Act, enacted on December 22, 2017, and a charge related to payment of plan obligations to certain participants of a U.S. non-qualified pension plan. The third quarter of 2017 included a gain related to the sale of the Company's EAA Business. The second quarter of 2017 included a gain related to the Nova patent infringement award. 3. Earnings per common share amounts relate only to Dow Inc. as TDCC common shares are not publicly traded and are all owned by Dow Inc. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Percentage of LIFO Inventory | 34.00% | 32.00% | |
Percentage of FIFO Inventory | 57.00% | 59.00% | |
Percentage of Weighted Average Cost Inventory | 9.00% | 9.00% | |
Dividends declared (in dollars per share) | $ 1.38 | $ 1.84 | |
Minimum | |||
Useful life | 3 years | ||
Maximum | |||
Useful life | 20 years | ||
Asset retirement obligations, estimated remaining useful life | 10 years | ||
The Dow Chemical Company [Domain] | |||
Dividends declared (in dollars per share) | $ 1.38 | $ 1.84 |
RECENT ACCOUNTING GUIDANCE (Det
RECENT ACCOUNTING GUIDANCE (Details) - Subsequent Event - Accounting Standards Update 2016-02 $ in Billions | Jan. 01, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Lease, right-of-use asset | $ 2.3 |
Lease liability | $ 2.3 |
MERGER WITH DUPONT (Details)
MERGER WITH DUPONT (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | ||||
Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 01, 2017 | Aug. 31, 2017 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Common stock issued (in shares) | 100 | 100 | |||
Treasury Stock [Member] | |||||
Stock Repurchased and Retired During Period, Value | $ 935 | ||||
Common Stock | |||||
Stock Repurchased and Retired During Period, Value | 3,107 | ||||
Add'l Paid-in Capital | |||||
Stock Repurchased and Retired During Period, Value | $ 2,172 | ||||
The Dow Chemical Company [Domain] | |||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 2.50 | |
Dow to DowDuPont Share Exchange Ratio for Common Shares | 1 | ||||
Common stock issued (in shares) | 100 | 100 | 100 | ||
DowDuPont | |||||
Common stock, par value (in dollars per share) | $ 0.01 |
ACQUISITIONS (Ownership Restruc
ACQUISITIONS (Ownership Restructure of Dow Corning) (Details) - USD ($) $ in Millions | Jun. 01, 2016 | May 31, 2016 | Aug. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||||
Equity method investments | $ 3,320 | $ 3,107 | $ 2,974 | ||||
Remeasurement gain (loss) | 1,389 | ||||||
Amortization of Merger-related inventory step-up | 2 | 120 | 0 | ||||
Goodwill | 9,846 | 9,833 | 7,541 | ||||
Dow Silicones Corporation | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of voting interests acquired | 50.00% | ||||||
Payments to acquire Businesses | $ 4,800 | ||||||
Recognized tax benefit | $ 93 | ||||||
Amortization of Merger-related inventory step-up | 213 | ||||||
Goodwill | 2,251 | ||||||
Dow Silicones Corporation | |||||||
Business Acquisition [Line Items] | |||||||
Equity method investments | $ 1,968 | ||||||
Ownership percentage | 50.00% | ||||||
Dow Silicones Corporation | |||||||
Business Acquisition [Line Items] | |||||||
Proceeds from issuance of debt | $ 4,500 | ||||||
Dow Silicones Corporation | Corning Incorporated | SplitCo | |||||||
Business Acquisition [Line Items] | |||||||
Noncontrolling interest, ownership percentage by parent | 100.00% | ||||||
Performance Materials & Coatings [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Equity method investments | 99 | 103 | 280 | ||||
Remeasurement gain (loss) | 1,389 | ||||||
Goodwill | 3,650 | $ 3,689 | $ 4,938 | ||||
Performance Materials & Coatings [Member] | Dow Silicones Corporation | |||||||
Business Acquisition [Line Items] | |||||||
Remeasurement gain (loss) | $ 1,617 | $ (20) | |||||
Amortization of Merger-related inventory step-up | $ 213 |
SEPARATION FROM DOWDUPONT Sep_2
SEPARATION FROM DOWDUPONT Separation from DowDuPont (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 31, 2017 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | ||
Common Stock, Shares, Issued | 100 | 100 | ||
DowDuPont | ||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | |||
Subsequent Event | Dow Inc. [Member] | ||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | |||
Common Stock, Shares, Issued | 748,800,000 | |||
Proceeds from Contributions from Parent | $ 2,024 | |||
Subsequent Event | DowDuPont | ||||
Common Stock, Par or Stated Value Per Share | $ 0.01 |
SEPARATION FROM DOWDUPONT Recei
SEPARATION FROM DOWDUPONT Receipt of ECP (Details) - USD ($) $ in Millions | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Aug. 31, 2017 | |
Cash and cash equivalents at end of year | $ 2,724 | $ 6,189 | $ 6,189 | $ 2,724 | $ 6,189 | $ 6,607 | |||||||
Accounts and notes receivable - Trade | 5,646 | 5,386 | 5,386 | 5,646 | 5,386 | ||||||||
Other | 3,389 | 4,208 | 4,208 | 3,389 | 4,208 | ||||||||
Inventories | 6,899 | 6,045 | 6,045 | 6,899 | 6,045 | ||||||||
Other current assets | 712 | 510 | 510 | 712 | 510 | ||||||||
Investment in nonconsolidated affiliates | 3,320 | 3,107 | 3,107 | 3,320 | 3,107 | 2,974 | |||||||
Net property | 21,418 | 21,584 | 21,584 | 21,418 | 21,584 | 20,161 | |||||||
Goodwill | 9,846 | 9,833 | 9,833 | 9,846 | 9,833 | 7,541 | |||||||
Other intangible assets | 4,225 | 4,729 | 4,729 | 4,225 | 4,729 | ||||||||
Deferred income tax assets | 1,779 | 1,114 | 1,114 | 1,779 | 1,114 | ||||||||
Total Assets | 85,852 | 85,852 | 85,852 | ||||||||||
Trade | 4,456 | 4,004 | 4,004 | 4,456 | 4,004 | ||||||||
Accounts payable - Other | 2,479 | 2,463 | 2,463 | 2,479 | 2,463 | ||||||||
Accrued and other current liabilities | 2,931 | 3,389 | 3,389 | 2,931 | 3,389 | ||||||||
Deferred income tax liabilities | 501 | 27 | 27 | 501 | 27 | ||||||||
Pension and other postretirement benefits - noncurrent | 8,926 | 10,494 | 10,494 | 8,926 | 10,494 | ||||||||
Other noncurrent obligations | 4,709 | 5,193 | 5,193 | 4,709 | 5,193 | ||||||||
Net sales | $ 11,944 | $ 12,634 | $ 12,789 | $ 12,237 | $ 12,061 | $ 10,991 | $ 10,554 | $ 10,124 | 49,604 | 43,730 | 36,264 | ||
Income (loss) from continuing operations before income taxes | 3,749 | 237 | 1,260 | ||||||||||
Amortization of Merger-related inventory step-up | 2 | $ 120 | $ 0 | ||||||||||
ECP [Member] | |||||||||||||
Cash and cash equivalents at end of year | $ 1 | ||||||||||||
Accounts and notes receivable - Trade | 169 | ||||||||||||
Other | 32 | ||||||||||||
Inventories | 529 | ||||||||||||
Other current assets | 6 | ||||||||||||
Investment in nonconsolidated affiliates | 116 | ||||||||||||
Net property | 817 | ||||||||||||
Goodwill | 3,617 | ||||||||||||
Other intangible assets | 1,484 | ||||||||||||
Deferred income tax assets | 9 | ||||||||||||
Total Assets | 6,780 | ||||||||||||
Trade | 102 | ||||||||||||
Accounts payable - Other | 29 | ||||||||||||
Accrued and other current liabilities | 31 | ||||||||||||
Deferred income tax liabilities | 683 | ||||||||||||
Pension and other postretirement benefits - noncurrent | 6 | ||||||||||||
Other noncurrent obligations | 3 | ||||||||||||
Liabilities | 854 | ||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments Related to Previous Period | 233 | 182 | |||||||||||
Net sales | 558 | 1,512 | |||||||||||
Income (loss) from continuing operations before income taxes | (46) | 178 | |||||||||||
ECP [Member] | Cost of sales | |||||||||||||
Amortization of Merger-related inventory step-up | $ 120 | $ 2 | |||||||||||
Retained Earnings [Member] | ECP [Member] | |||||||||||||
Net Assets | $ 5,926 |
SEPARATION FROM DOWDUPONT Disco
SEPARATION FROM DOWDUPONT Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||||||||||
Net sales | $ 11,944 | $ 12,634 | $ 12,789 | $ 12,237 | $ 12,061 | $ 10,991 | $ 10,554 | $ 10,124 | $ 49,604 | $ 43,730 | $ 36,264 |
Cost of sales | 10,098 | 10,456 | 10,540 | 9,980 | 10,322 | 8,979 | 8,703 | 8,346 | 41,074 | 36,350 | 30,053 |
Research and development expenses | 800 | 803 | 746 | ||||||||
Selling, general and administrative expenses | 1,782 | 1,795 | 1,800 | ||||||||
Amortization of intangibles | 469 | 400 | 316 | ||||||||
Restructuring, goodwill impairment and asset related charges - net | 46 | 48 | 40 | 87 | 2,634 | 117 | (12) | 0 | 221 | 2,739 | 579 |
Integration and separation costs | 380 | 313 | 262 | 224 | 263 | 290 | 136 | 109 | 1,179 | 798 | 349 |
Equity in earnings of nonconsolidated affiliates | 555 | 394 | 187 | ||||||||
Sundry income (expense) - net | 96 | (154) | 517 | ||||||||
Interest income | 82 | 66 | 75 | ||||||||
Interest expense and amortization of debt discount | 1,063 | 914 | 827 | ||||||||
Provision (credit) for income taxes on continuing operations | 809 | 1,524 | (218) | ||||||||
Income from discontinued operations, net of tax | 432 | $ 335 | $ 554 | $ 514 | 737 | $ 296 | $ 548 | $ 301 | 1,835 | 1,882 | 2,926 |
Consolidated Balance Sheet [Abstract] | |||||||||||
Trade (net of allowance for doubtful receivables - 2018: $42; 2017: $59) | 5,646 | 5,386 | 5,646 | 5,386 | |||||||
Other | 3,389 | 4,208 | 3,389 | 4,208 | |||||||
Inventories | 6,899 | 6,045 | 6,899 | 6,045 | |||||||
Other current assets | 712 | 510 | 712 | 510 | |||||||
Investment in nonconsolidated affiliates | 3,320 | 3,107 | 3,320 | 3,107 | 2,974 | ||||||
Other investments | 2,646 | 2,507 | 2,646 | 2,507 | |||||||
Noncurrent receivables | 360 | 543 | 360 | 543 | |||||||
Net property | 21,418 | 21,584 | 21,418 | 21,584 | 20,161 | ||||||
Goodwill | 9,846 | 9,833 | 9,846 | 9,833 | 7,541 | ||||||
Other intangible assets | 4,225 | 4,729 | 4,225 | 4,729 | |||||||
Deferred income tax assets | 1,779 | 1,114 | 1,779 | 1,114 | |||||||
Deferred charges and other assets | 735 | 814 | 735 | 814 | |||||||
Total Assets | 85,852 | 85,852 | |||||||||
Notes payable | 298 | 481 | 298 | 481 | |||||||
Long-term debt due within one year | 338 | 748 | 338 | 748 | |||||||
Trade | 4,456 | 4,004 | 4,456 | 4,004 | |||||||
Other | 2,479 | 2,463 | 2,479 | 2,463 | |||||||
Income taxes payable | 557 | 487 | 557 | 487 | |||||||
Accrued and other current liabilities | 2,931 | 3,389 | 2,931 | 3,389 | |||||||
Long-term debt | 19,253 | 19,757 | 19,253 | 19,757 | |||||||
Deferred income tax liabilities | 501 | 27 | 501 | 27 | |||||||
Pension and other postretirement benefits - noncurrent | 8,926 | 10,494 | 8,926 | 10,494 | |||||||
Other noncurrent obligations | 4,709 | 5,193 | 4,709 | 5,193 | |||||||
Discontinued Operations [Member] | |||||||||||
Income Statement [Abstract] | |||||||||||
Net sales | 12,187 | 12,337 | 11,894 | ||||||||
Cost of sales | 7,668 | 7,769 | 7,615 | ||||||||
Research and development expenses | 761 | 854 | 848 | ||||||||
Selling, general and administrative expenses | 1,108 | 1,143 | 1,152 | ||||||||
Amortization of intangibles | 249 | 255 | 228 | ||||||||
Restructuring, goodwill impairment and asset related charges - net | 411 | 376 | 16 | ||||||||
Integration and separation costs | 0 | 18 | 0 | ||||||||
Equity in earnings of nonconsolidated affiliates | 400 | 372 | 254 | ||||||||
Sundry income (expense) - net | (13) | 245 | 862 | ||||||||
Interest income | 26 | 40 | 33 | ||||||||
Interest expense and amortization of debt discount | 56 | 61 | 31 | ||||||||
Income (loss) from discontinued operations before income taxes | 2,347 | 2,518 | 3,153 | ||||||||
Provision (credit) for income taxes on continuing operations | 512 | 636 | 227 | ||||||||
Income from discontinued operations, net of tax | 1,835 | 1,882 | $ 2,926 | ||||||||
Consolidated Balance Sheet [Abstract] | |||||||||||
Trade (net of allowance for doubtful receivables - 2018: $42; 2017: $59) | 2,768 | 2,124 | 2,768 | 2,124 | |||||||
Other | 773 | 545 | 773 | 545 | |||||||
Inventories | 2,826 | 2,763 | 2,826 | 2,763 | |||||||
Other current assets | 151 | 117 | 151 | 117 | |||||||
Investment in nonconsolidated affiliates | 612 | 749 | 612 | 749 | |||||||
Other investments | 2 | 2 | 2 | 2 | |||||||
Noncurrent receivables | 35 | 54 | 35 | 54 | |||||||
Net property | 3,014 | 3,043 | 3,014 | 3,043 | |||||||
Goodwill | 7,590 | 7,622 | 7,590 | 7,622 | |||||||
Other intangible assets | 1,830 | 2,075 | 1,830 | 2,075 | |||||||
Deferred income tax assets | 239 | 169 | 239 | 169 | |||||||
Deferred charges and other assets | 60 | 16 | 60 | 16 | |||||||
Total Assets | 19,900 | 19,279 | 19,900 | 19,279 | |||||||
Notes payable | 7 | 2 | 7 | 2 | |||||||
Long-term debt due within one year | 4 | 4 | 4 | 4 | |||||||
Trade | 1,118 | 1,477 | 1,118 | 1,477 | |||||||
Other | 868 | 631 | 868 | 631 | |||||||
Income taxes payable | 234 | 207 | 234 | 207 | |||||||
Accrued and other current liabilities | 716 | 687 | 716 | 687 | |||||||
Long-term debt | 5 | 8 | 5 | 8 | |||||||
Deferred income tax liabilities | 568 | 741 | 568 | 741 | |||||||
Pension and other postretirement benefits - noncurrent | 306 | 307 | 306 | 307 | |||||||
Other noncurrent obligations | 662 | 807 | 662 | 807 | |||||||
Liabilities | $ 4,488 | $ 4,871 | $ 4,488 | $ 4,871 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Revenue from External Customer [Line Items] | ||||
Revenues | $ 49,604 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 22 years | |||
Contract with Customer, Liability, Revenue Recognized | $ 205 | |||
Contract with Customer, Asset, Reclassified to Receivable | 12 | |||
Accounts and notes receivable - Trade | 5,646 | $ 5,386 | ||
Contract assets - current | 19 | 0 | ||
Contract assets - noncurrent | 1 | 0 | ||
Contract liabilities - current | 134 | 116 | ||
Contract liabilities - noncurrent | $ 1,318 | $ 1,365 | ||
Adjustments | ||||
Revenue from External Customer [Line Items] | ||||
Accounts and notes receivable - Trade | $ 0 | |||
Contract assets - current | 1 | |||
Contract assets - noncurrent | 0 | |||
Contract liabilities - current | 21 | |||
Contract liabilities - noncurrent | $ 47 | |||
Product | ||||
Revenue from External Customer [Line Items] | ||||
Revenue, Percentage from Products and Service Transferred to Customers | 99.00% | 98.00% | 99.00% | |
Licensing of Technology | ||||
Revenue from External Customer [Line Items] | ||||
Revenue, Remaining Performance Obligation, Amount | $ 407 | |||
Packaging & Specialty Plastics [Member] [Domain] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 24,195 | |||
Corporate Segment [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 285 | |||
Performance Materials & Coatings [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 9,677 | |||
Industrial Intermediates & Infrastructure [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 15,447 | |||
Coatings and Performance Monomers [Member] | Performance Materials & Coatings [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 3,979 | |||
Consumer Solutions [Member] | Performance Materials & Coatings [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 5,698 | |||
Industrial Solutions [Member] | Industrial Intermediates & Infrastructure [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 4,812 | |||
Polyurethanes & CAV [Member] | Industrial Intermediates & Infrastructure [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 10,615 | |||
Other [Member] | Industrial Intermediates & Infrastructure [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 20 | |||
Hydrocarbons & Energy [Member] | Packaging & Specialty Plastics [Member] [Domain] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 7,587 | |||
Packaging and Specialty Plastics [Member] | Packaging & Specialty Plastics [Member] [Domain] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 16,608 | |||
U.S.& Canada [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 17,809 | |||
Europe, Middle East, Africa and India [Domain] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 17,406 | |||
Asia Pacific [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 9,404 | |||
Latin America [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 4,985 | |||
The Dow Chemical Company [Domain] | ||||
Revenue from External Customer [Line Items] | ||||
Accounts and notes receivable - Trade | $ 5,646 | $ 5,386 |
DIVESTITURES (Divestiture of th
DIVESTITURES (Divestiture of the Global Ethylene Acrylic Acid (EAA) Copolymers and Ionomers Business (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 01, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on disposal | $ 0 | $ 0 | $ (14) | |
Global Ethylene Acrylic Acid (EAA) | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Consideration received | $ 296 | |||
Gain on disposal | 0 | 227 | $ 0 | |
Packaging & Specialty Plastics [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on disposal | $ 0 | |||
Packaging & Specialty Plastics [Member] | Global Ethylene Acrylic Acid (EAA) | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on disposal | $ 227 |
RESTRUCTURING, GOODWILL IMPAI_3
RESTRUCTURING, GOODWILL IMPAIRMENT AND ASSET RELATED CHARGES - NET (DowDuPont Cost Synergy Program) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 01, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | $ 46 | $ 48 | $ 40 | $ 87 | $ 2,634 | $ 117 | $ (12) | $ 0 | $ 221 | $ 2,739 | $ 579 | |
Performance Materials & Coatings [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 21 | 1,578 | 42 | |||||||||
Industrial Intermediates & Infrastructure [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 11 | 17 | 83 | |||||||||
Packaging & Specialty Plastics [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 46 | 716 | 10 | |||||||||
Corporate Segment [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 143 | 428 | $ 444 | |||||||||
DowDuPont Cost Synergy Program | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Expected cost | $ 1,300 | |||||||||||
Restructuring, goodwill impairment and asset related charges - net | 184 | 399 | ||||||||||
Charges against the reserve | (33) | (87) | ||||||||||
Cash payments | (209) | (37) | ||||||||||
Restructuring Reserve | 217 | 275 | 217 | 275 | ||||||||
DowDuPont Cost Synergy Program | Performance Materials & Coatings [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 7 | 11 | ||||||||||
DowDuPont Cost Synergy Program | Industrial Intermediates & Infrastructure [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 11 | 12 | ||||||||||
DowDuPont Cost Synergy Program | Packaging & Specialty Plastics [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 13 | 36 | ||||||||||
DowDuPont Cost Synergy Program | Corporate Segment [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 153 | 340 | ||||||||||
DowDuPont Cost Synergy Program | Accrued and other current liabilities | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Reserve | 205 | 170 | 205 | 170 | ||||||||
DowDuPont Cost Synergy Program | Other noncurrent obligations | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Reserve | 12 | 105 | 12 | 105 | ||||||||
DowDuPont Cost Synergy Program | Property, Plant and Equipment | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 87 | |||||||||||
DowDuPont Cost Synergy Program | Severance and Related Benefit Costs | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 137 | 307 | ||||||||||
Charges against the reserve | 0 | 0 | ||||||||||
Cash payments | (197) | (37) | ||||||||||
Restructuring Reserve | 210 | 270 | 210 | 270 | ||||||||
DowDuPont Cost Synergy Program | Severance and Related Benefit Costs | Performance Materials & Coatings [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 0 | 0 | ||||||||||
DowDuPont Cost Synergy Program | Severance and Related Benefit Costs | Industrial Intermediates & Infrastructure [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 0 | 0 | ||||||||||
DowDuPont Cost Synergy Program | Severance and Related Benefit Costs | Packaging & Specialty Plastics [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 0 | 0 | ||||||||||
DowDuPont Cost Synergy Program | Severance and Related Benefit Costs | Corporate Segment [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 137 | 307 | ||||||||||
DowDuPont Cost Synergy Program | Severance and Related Benefit Costs | Minimum | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Expected cost | 525 | |||||||||||
DowDuPont Cost Synergy Program | Severance and Related Benefit Costs | Maximum | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Expected cost | 575 | |||||||||||
DowDuPont Cost Synergy Program | Asset Write-downs and Write-offs | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 33 | 87 | ||||||||||
Charges against the reserve | (33) | (87) | ||||||||||
Cash payments | 0 | 0 | ||||||||||
Restructuring Reserve | 0 | 0 | 0 | 0 | ||||||||
DowDuPont Cost Synergy Program | Asset Write-downs and Write-offs | Performance Materials & Coatings [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 7 | 9 | ||||||||||
DowDuPont Cost Synergy Program | Asset Write-downs and Write-offs | Industrial Intermediates & Infrastructure [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 0 | 12 | ||||||||||
DowDuPont Cost Synergy Program | Asset Write-downs and Write-offs | Packaging & Specialty Plastics [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 10 | 33 | ||||||||||
DowDuPont Cost Synergy Program | Asset Write-downs and Write-offs | Corporate Segment [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 16 | 33 | ||||||||||
DowDuPont Cost Synergy Program | Asset Write-downs and Write-offs | Minimum | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Expected cost | 400 | |||||||||||
DowDuPont Cost Synergy Program | Asset Write-downs and Write-offs | Maximum | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Expected cost | 440 | |||||||||||
DowDuPont Cost Synergy Program | Costs Associated with Exit and Disposal Activities | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 14 | 5 | ||||||||||
Charges against the reserve | 0 | 0 | ||||||||||
Cash payments | (12) | 0 | ||||||||||
Restructuring Reserve | $ 7 | $ 5 | 7 | 5 | ||||||||
DowDuPont Cost Synergy Program | Costs Associated with Exit and Disposal Activities | Performance Materials & Coatings [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 0 | 2 | ||||||||||
DowDuPont Cost Synergy Program | Costs Associated with Exit and Disposal Activities | Industrial Intermediates & Infrastructure [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 11 | 0 | ||||||||||
DowDuPont Cost Synergy Program | Costs Associated with Exit and Disposal Activities | Packaging & Specialty Plastics [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 3 | 3 | ||||||||||
DowDuPont Cost Synergy Program | Costs Associated with Exit and Disposal Activities | Corporate Segment [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 0 | 0 | ||||||||||
DowDuPont Cost Synergy Program | Costs Associated with Exit and Disposal Activities | Minimum | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Expected cost | 290 | |||||||||||
DowDuPont Cost Synergy Program | Costs Associated with Exit and Disposal Activities | Maximum | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Expected cost | $ 310 | |||||||||||
DowDuPont Cost Synergy Program | Asset Related Charges and Other, Write-off of Capital Projects and Other Non-manufacturing Assets | Packaging & Specialty Plastics [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 22 | |||||||||||
DowDuPont Cost Synergy Program | Asset Related Charges and Other, Miscellaneous Asset Write-Down and Write-Offs | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 33 | 65 | ||||||||||
DowDuPont Cost Synergy Program | Asset Related Charges and Other, Miscellaneous Asset Write-Down and Write-Offs | Performance Materials & Coatings [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 7 | 9 | ||||||||||
DowDuPont Cost Synergy Program | Asset Related Charges and Other, Miscellaneous Asset Write-Down and Write-Offs | Industrial Intermediates & Infrastructure [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 12 | |||||||||||
DowDuPont Cost Synergy Program | Asset Related Charges and Other, Miscellaneous Asset Write-Down and Write-Offs | Packaging & Specialty Plastics [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 10 | 11 | ||||||||||
DowDuPont Cost Synergy Program | Asset Related Charges and Other, Miscellaneous Asset Write-Down and Write-Offs | Corporate Segment [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | $ 16 | $ 33 |
RESTRUCTURING, GOODWILL IMPAI_4
RESTRUCTURING, GOODWILL IMPAIRMENT AND ASSET RELATED CHARGES - NET (2016 Restructuring Charges) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Jun. 30, 2016USD ($)employees | Dec. 31, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | $ 46 | $ 48 | $ 40 | $ 87 | $ 2,634 | $ 117 | $ (12) | $ 0 | $ 221 | $ 2,739 | $ 579 | ||
Performance Materials & Coatings [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 21 | 1,578 | 42 | ||||||||||
Industrial Intermediates & Infrastructure [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 11 | 17 | 83 | ||||||||||
Packaging & Specialty Plastics [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 46 | 716 | 10 | ||||||||||
Corporate Segment [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 143 | 428 | 444 | ||||||||||
2016 Restructuring | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | $ 436 | $ 436 | |||||||||||
Charges against the reserve | (153) | ||||||||||||
Cash payments | (67) | (42) | (140) | ||||||||||
Restructuring Reserve | 33 | 69 | 216 | 33 | 69 | 216 | |||||||
Adjustments to the reserve | 6 | (7) | |||||||||||
2016 Restructuring | Performance Materials & Coatings [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 42 | ||||||||||||
2016 Restructuring | Industrial Intermediates & Infrastructure [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 83 | ||||||||||||
2016 Restructuring | Packaging & Specialty Plastics [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 10 | ||||||||||||
2016 Restructuring | Corporate Segment [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 301 | ||||||||||||
2016 Restructuring | Severance and Related Benefit Costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | employees | 2,500 | ||||||||||||
Restructuring, goodwill impairment and asset related charges - net | $ 255 | 255 | |||||||||||
Charges against the reserve | 0 | ||||||||||||
Cash payments | (66) | (38) | (137) | ||||||||||
Restructuring Reserve | 6 | 52 | 189 | 6 | 52 | 189 | |||||||
Adjustments to the reserve | (8) | 0 | |||||||||||
2016 Restructuring | Severance and Related Benefit Costs | Performance Materials & Coatings [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 0 | ||||||||||||
2016 Restructuring | Severance and Related Benefit Costs | Industrial Intermediates & Infrastructure [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 0 | ||||||||||||
2016 Restructuring | Severance and Related Benefit Costs | Packaging & Specialty Plastics [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 0 | ||||||||||||
2016 Restructuring | Severance and Related Benefit Costs | Corporate Segment [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 255 | ||||||||||||
2016 Restructuring | Asset Write-downs and Write-offs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 153 | 153 | |||||||||||
Charges against the reserve | (153) | ||||||||||||
Cash payments | 0 | 0 | 0 | ||||||||||
Restructuring Reserve | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
Adjustments to the reserve | 0 | 0 | |||||||||||
2016 Restructuring | Asset Write-downs and Write-offs | Performance Materials & Coatings [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 27 | ||||||||||||
2016 Restructuring | Asset Write-downs and Write-offs | Industrial Intermediates & Infrastructure [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 70 | ||||||||||||
2016 Restructuring | Asset Write-downs and Write-offs | Packaging & Specialty Plastics [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 10 | ||||||||||||
2016 Restructuring | Asset Write-downs and Write-offs | Corporate Segment [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 46 | ||||||||||||
2016 Restructuring | Costs Associated with Exit and Disposal Activities | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 28 | 28 | |||||||||||
Charges against the reserve | 0 | ||||||||||||
Cash payments | (1) | (4) | (3) | ||||||||||
Restructuring Reserve | $ 27 | $ 17 | 27 | 27 | 17 | $ 27 | |||||||
Adjustments to the reserve | $ 14 | $ (7) | |||||||||||
2016 Restructuring | Costs Associated with Exit and Disposal Activities | Performance Materials & Coatings [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 15 | ||||||||||||
2016 Restructuring | Costs Associated with Exit and Disposal Activities | Industrial Intermediates & Infrastructure [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 13 | ||||||||||||
2016 Restructuring | Costs Associated with Exit and Disposal Activities | Packaging & Specialty Plastics [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 0 | ||||||||||||
2016 Restructuring | Costs Associated with Exit and Disposal Activities | Corporate Segment [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | $ 0 | ||||||||||||
2016 Restructuring | Asset Related Charges and Other, Facility Closing, Write-down of Assets and Write-off of Capital Projects Including In-process Research and Development | Industrial Intermediates & Infrastructure [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 70 | ||||||||||||
2016 Restructuring | Asset Related Charges and Other, Facility Closing | Performance Materials & Coatings [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 25 | ||||||||||||
2016 Restructuring | Asset Related Charges and Other, Closure and Consolidation of Certain Corporate Facilities and Data Centers | Corporate Segment [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 25 | ||||||||||||
2016 Restructuring | Asset Related Charges and Other, Facility Closing and Write-down of Non-manufacturing Assets | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 33 | ||||||||||||
2016 Restructuring | Asset Related Charges and Other, Facility Closing and Write-down of Non-manufacturing Assets | Performance Materials & Coatings [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 2 | ||||||||||||
2016 Restructuring | Asset Related Charges and Other, Facility Closing and Write-down of Non-manufacturing Assets | Packaging & Specialty Plastics [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | 10 | ||||||||||||
2016 Restructuring | Asset Related Charges and Other, Facility Closing and Write-down of Non-manufacturing Assets | Corporate Segment [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring, goodwill impairment and asset related charges - net | $ 21 |
RESTRUCTURING, GOODWILL IMPAI_5
RESTRUCTURING, GOODWILL IMPAIRMENT AND ASSET RELATED CHARGES - NET (Goodwill Impairment and Asset Related Charges) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
AgroFresh | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Equity Method Investment, Other than Temporary Impairment | $ 143 | |||
Performance Materials & Coatings [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Goodwill, Impairment Loss | $ 1,491 | $ 1,491 | ||
Packaging & Specialty Plastics [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Goodwill, Impairment Loss | 0 | |||
Industrial Intermediates & Infrastructure [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Goodwill, Impairment Loss | $ 0 | |||
Corporate Segment [Member] | AgroFresh | AgroFresh | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Equity Method Investment, Other than Temporary Impairment | $ 143 | |||
Manufacturing Facility | Packaging & Specialty Plastics [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset Impairment Charges | 622 | $ 34 | ||
Manufacturing Assets, Equity Method Investments, and Other Assets | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset Impairment Charges | 246 | |||
Manufacturing Assets, Equity Method Investments, and Other Assets | Performance Materials & Coatings [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset Impairment Charges | 83 | |||
Manufacturing Assets, Equity Method Investments, and Other Assets | Packaging & Specialty Plastics [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset Impairment Charges | 58 | |||
Manufacturing Assets, Equity Method Investments, and Other Assets | Industrial Intermediates & Infrastructure [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset Impairment Charges | 5 | |||
Manufacturing Assets, Equity Method Investments, and Other Assets | Corporate Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset Impairment Charges | 100 | |||
Manufacturing Assets | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset Impairment Charges | 159 | |||
Equity Method Investments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset Impairment Charges | 81 | |||
Other Assets | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset Impairment Charges | $ 6 |
SUPPLEMENTARY INFORMATION (Sund
SUPPLEMENTARY INFORMATION (Sundry Income, Net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplementary Information [Line Items] | |||
Non-operating pension and other postretirement benefit plan net credit | $ 123 | $ (676) | $ 35 |
Gain on sales of other assets and investments | 18 | 117 | 157 |
Foreign exchange losses | (119) | (72) | (126) |
Gain (loss) on divestiture | 0 | 0 | (14) |
Gain and post-close adjustments related to Dow Silicones ownership restructure | (20) | 0 | 1,617 |
Loss on early extinguishment of debt | (54) | 0 | 0 |
Gain (loss) related to litigation settlement | (137) | (1,219) | |
Costs associated with transactions and productivity actions | 0 | 0 | (41) |
Reclassification of cumulative translation adjustments | 4 | 8 | 0 |
Other - net | 124 | 98 | 114 |
Sundry income (expense) - net | 96 | (154) | 517 |
MEGlobal | |||
Supplementary Information [Line Items] | |||
Gain (loss) on divestiture | 20 | ||
Chlorine Value Chain | |||
Supplementary Information [Line Items] | |||
Gain (loss) on divestiture | 7 | 6 | |
AgroFresh | |||
Supplementary Information [Line Items] | |||
Gain (loss) on divestiture | (25) | ||
Dow Silicones Corporation | |||
Supplementary Information [Line Items] | |||
Gain and post-close adjustments related to Dow Silicones ownership restructure | (20) | 0 | 1,617 |
Loss on early extinguishment of debt | 15 | ||
Breast Implant and Other Products Liability Claims | Impact to Sundry income (expense) | |||
Supplementary Information [Line Items] | |||
Implant liability adjustment | 0 | 0 | 16 |
Nova Patent Infringement | |||
Supplementary Information [Line Items] | |||
Gain (loss) related to litigation settlement | 0 | 137 | 0 |
Urethane Matters Class Action Lawsuit And Opt-Out Cases | |||
Supplementary Information [Line Items] | |||
Gain (loss) related to litigation settlement | 0 | 0 | (1,235) |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | MEGlobal | |||
Supplementary Information [Line Items] | |||
Gain (loss) on divestiture | 20 | 0 | (1) |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Global Ethylene Acrylic Acid (EAA) | |||
Supplementary Information [Line Items] | |||
Gain (loss) on divestiture | 0 | 227 | 0 |
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations | Chlorine Value Chain | |||
Supplementary Information [Line Items] | |||
Gain (loss) on divestiture | $ 0 | $ 7 | $ 6 |
SUPPLEMENTARY INFORMATION (Accr
SUPPLEMENTARY INFORMATION (Accrued and other current liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Supplementary Information [Abstract] | ||
Accrued and other current liabilities | $ 2,931 | $ 3,389 |
Employee-related Liabilities, Current | $ 759 | $ 956 |
SUPPLEMENTARY INFORMATION (Supp
SUPPLEMENTARY INFORMATION (Supplemental Cash Flow Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplementary Information [Abstract] | |||
Interest , net of amounts capitalized | $ 1,143 | $ 1,115 | $ 1,162 |
Income taxes | $ 1,193 | $ 1,259 | $ 1,306 |
INCOME TAXES (Geographic Alloca
INCOME TAXES (Geographic Allocation of Income and Provision for Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||||||||||
Provisional income tax (expense) benefit | $ 81 | $ 79 | $ 2 | |||||||||
Transition tax for accumulated foreign earnings, provisional income tax expense (benefit) | $ (789) | 85 | (874) | |||||||||
Indirect impact on inventory, provisional for income taxes | (38) | |||||||||||
Income (loss) from continuing operations before income taxes | ||||||||||||
Domestic | 745 | (2,226) | $ (991) | |||||||||
Foreign | 3,004 | 2,463 | 2,251 | |||||||||
Income from continuing operations before income taxes | 3,749 | 237 | 1,260 | |||||||||
Current tax expense (benefit) | ||||||||||||
Federal | 324 | (864) | 164 | |||||||||
State and local | 13 | 4 | 21 | |||||||||
Foreign | 901 | 971 | 606 | |||||||||
Total current tax expense | 1,238 | 111 | 791 | |||||||||
Deferred tax expense (benefit) | ||||||||||||
Federal | (318) | 1,499 | (1,029) | |||||||||
State and local | (32) | 85 | (59) | |||||||||
Foreign | (79) | (171) | 79 | |||||||||
Provision (Credit) for deferred income tax | (429) | 1,413 | (1,009) | |||||||||
Provision (credit) for income taxes on continuing operations | 809 | 1,524 | (218) | |||||||||
Income from continuing operations, net of tax | $ 491 | $ 714 | $ 810 | $ 925 | $ (3,218) | $ 505 | $ 812 | $ 614 | $ 2,940 | (1,287) | 1,478 | |
Income (loss) from portfolio actions included in Continuing Operations before Income Taxes, Domestic | $ 1,400 | 1,400 | ||||||||||
Expenses related to the urethane matters settlements, asbestos-related charge and charges for environmental matters included in Continuing Operations before Income Taxes, Domestic | $ 2,600 |
INCOME TAXES (Reconciliation to
INCOME TAXES (Reconciliation to U.S. Statutory Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate | 21.00% | 35.00% | 35.00% |
Equity earnings effect | (3.30%) | (52.70%) | (1.70%) |
Foreign income taxed at rates other than the statutory U.S. federal income tax rate | 6.70% | (61.20%) | (14.90%) |
U.S. tax effect of foreign earnings and dividends | (0.70%) | (8.40%) | 12.50% |
Unrecognized tax benefits | 0.20% | 13.50% | (2.70%) |
Acquisitions, divestitures and ownership restructuring activities | 0.80% | 142.00% | (48.20%) |
Impact of U.S. tax reform | (3.40%) | 367.80% | 0.00% |
State and local income taxes | 0.40% | 11.40% | 2.90% |
Goodwill impairment | 0.00% | 220.80% | 0.00% |
Excess tax benefits from stock-based compensation 3 | (1.00%) | (39.70%) | 0.00% |
Other - net | 0.90% | 14.50% | (0.20%) |
Effective Tax Rate | 21.60% | 643.00% | (17.30%) |
INCOME TAXES (Deferred Tax Bala
INCOME TAXES (Deferred Tax Balances) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Property, Plant and Equipment | $ 406 | $ 488 |
Deferred Tax Liabilities, Property, Plant and Equipment | 2,519 | 2,467 |
Deferred Tax Assets, Loss and Credit Carryforwards | 2,079 | 1,687 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Postretirement Benefits | 2,115 | 2,411 |
Deferred Tax Liabilities, Tax Deferred Expense, Compensation and Benefits, Postretirement Benefits | 143 | 149 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Other | 1,220 | 1,409 |
Deferred Tax Liabilities, Deferred Expense, Reserves and Accruals, Other | 151 | 174 |
Deferred Tax Assets, Goodwill and Intangible Assets | 157 | 126 |
Deferred Tax Liabilities, Goodwill and Intangible Assets | 954 | 1,019 |
Deferred Tax Assets, Inventory | 53 | 52 |
Deferred Tax Liabilities, Inventory | 239 | 232 |
Deferred Tax Assets, Investments | 190 | 275 |
Deferred Tax Liabilities, Investments | 84 | 87 |
Deferred Tax Assets, Other | 620 | 427 |
Deferred Tax Liabilities, Other | 247 | 405 |
Deferred Tax Assets, Gross | 6,840 | 6,875 |
Deferred Tax Liabilities, Gross | 4,337 | 4,533 |
Deferred Tax Assets, Valuation Allowance | (1,225) | (1,255) |
Deferred Tax Assets, Net of Valuation Allowance | 5,615 | $ 5,620 |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 267 |
INCOME TAXES (Operating Loss an
INCOME TAXES (Operating Loss and Tax Credit Carryforwards) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 1,441 | $ 1,477 |
Tax credit carryforwards | 638 | 210 |
Total operating loss and tax credit carryforwards | 2,079 | 1,687 |
Undistributed earnings of foreign subsidiaries | 6,014 | 6,218 |
Expiring Within Five Years [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 245 | 222 |
Tax credit carryforwards | 32 | 39 |
Expiring After Five Years or Having Indefinite Expiration [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 1,196 | 1,255 |
Tax credit carryforwards | $ 606 | $ 171 |
INCOME TAXES (Total Gross Unrec
INCOME TAXES (Total Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | Jun. 01, 2016 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||||
Unrecognized Tax Benefits | $ 255 | $ 231 | $ 280 | ||
Decreases related to positions taken on items from prior years | (8) | (4) | (12) | ||
Increases related to positions taken on items from prior years | 68 | 37 | 153 | ||
Increases related to positions taken in the current year | 2 | 12 | 135 | ||
Settlement of uncertain tax positions with tax authorities | 0 | (12) | (325) | ||
Decreases due to expiration of statutes of limitations | (1) | (9) | 0 | ||
Foreign exchange gain | (2) | 0 | 0 | ||
Unrecognized Tax Benefits | $ 231 | 314 | 255 | 231 | |
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate | 225 | 235 | 245 | 225 | |
Total amount of interest and penalties (benefit) recognized in Provision (credit) for income taxes on continuing operations | (12) | 2 | (55) | ||
Total accrual for interest and penalties recognized in the consolidated balance sheets | 89 | $ 109 | $ 110 | $ 89 | |
Tax Adjustments, Settlements, and Unusual Provisions | 206 | ||||
Effective Income Tax Rate Reconciliation, Tax Settlement, Amount | $ 13 | ||||
Dow Silicones Corporation | |||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||||
Unrecognized Tax Benefits, Increase Resulting from Acquisition | $ 126 |
INCOME TAXES (Additional Inform
INCOME TAXES (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Non-Income Tax Contingencies Related To Issues In US And Foreign Locations | ||
Income Tax Contingency [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | $ 91 | $ 110 |
ARGENTINA | ||
Income Tax Contingency [Line Items] | ||
Income Tax Examination, Year under Examination | 2011 | |
BRAZIL | ||
Income Tax Contingency [Line Items] | ||
Income Tax Examination, Year under Examination | 2006 | |
CANADA | ||
Income Tax Contingency [Line Items] | ||
Income Tax Examination, Year under Examination | 2012 | |
CHINA | ||
Income Tax Contingency [Line Items] | ||
Income Tax Examination, Year under Examination | 2008 | |
GERMANY | ||
Income Tax Contingency [Line Items] | ||
Income Tax Examination, Year under Examination | 2009 | |
ITALY | ||
Income Tax Contingency [Line Items] | ||
Income Tax Examination, Year under Examination | 2013 | |
NETHERLANDS | ||
Income Tax Contingency [Line Items] | ||
Income Tax Examination, Year under Examination | 2016 | |
SWITZERLAND | ||
Income Tax Contingency [Line Items] | ||
Income Tax Examination, Year under Examination | 2012 | |
Internal Revenue Service (IRS) | ||
Income Tax Contingency [Line Items] | ||
Income Tax Examination, Year under Examination | 2004 | |
State and Local Jurisdiction | ||
Income Tax Contingency [Line Items] | ||
Income Tax Examination, Year under Examination | 2004 |
EARNINGS PER SHARE Earnings Per
EARNINGS PER SHARE Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Apr. 01, 2019 | Aug. 31, 2017 | |
Income from continuing operations, net of tax | $ 491 | $ 714 | $ 810 | $ 925 | $ (3,218) | $ 505 | $ 812 | $ 614 | $ 2,940 | $ (1,287) | $ 1,478 | ||
Preferred stock dividends | 0 | 0 | (340) | ||||||||||
Undistributed Continuing Operation Earnings (Loss), Allocation to Participating Securities, Basic | 0 | (8) | (14) | ||||||||||
Net Income (Loss) from Continuing Operations Available to Common Shareholders, Basic | 2,838 | (1,397) | 1,071 | ||||||||||
Income from discontinued operations, net of tax | $ 432 | $ 335 | $ 554 | $ 514 | $ 737 | $ 296 | $ 548 | $ 301 | 1,835 | 1,882 | 2,926 | ||
Undistributed Discontinued Operation Earnings (Loss), Allocation to Participating Securities, Basic | 0 | (6) | (8) | ||||||||||
Net Income (Loss) from Discontinued Operations Available to Common Shareholders, Basic | 1,803 | 1,848 | 2,885 | ||||||||||
Net income available for The Dow Chemical Company common stockholder | $ 4,641 | $ 451 | $ 3,956 | ||||||||||
Earnings (loss) per common share from continuing operations - basic | $ 0.63 | $ 0.91 | $ 1.05 | $ 1.21 | $ (4.36) | $ 0.64 | $ 1.04 | $ 0.81 | $ 3.80 | $ (1.88) | $ 1.57 | ||
Earnings per common share from discontinued operations - basic | 2.41 | 2.48 | 4.23 | ||||||||||
Earnings per common share - basic | 6.21 | 0.60 | 5.80 | ||||||||||
Earnings (loss) per common share from continuing operations - diluted | $ 0.63 | $ 0.91 | $ 1.05 | $ 1.21 | $ (4.36) | $ 0.64 | $ 1.03 | $ 0.80 | 3.80 | (1.88) | 1.55 | ||
Earnings per common share from discontinued operations - diluted | 2.41 | 2.48 | 4.18 | ||||||||||
Earnings per common share - diluted | $ 6.21 | $ 0.60 | $ 5.73 | ||||||||||
Weighted-average common shares outstanding - basic | 747.2 | 744.8 | 681.6 | ||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 0 | 9.3 | ||||||||||
Weighted-average common shares outstanding - diluted | 747.2 | 744.8 | 690.9 | ||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 1.1 | 1.1 | ||||||||||
Noncontrolling Interests | |||||||||||||
Net income attributable to noncontrolling interests - continuing operations | $ (102) | $ (102) | $ (53) | ||||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | (32) | (28) | (33) | ||||||||||
The Dow Chemical Company [Domain] | |||||||||||||
Income from continuing operations, net of tax | 2,940 | (1,287) | 1,478 | ||||||||||
Preferred stock dividends | 0 | 0 | (340) | ||||||||||
Income from discontinued operations, net of tax | $ 1,835 | $ 1,882 | $ 2,926 | ||||||||||
Weighted-average common shares outstanding - basic | 1,108.1 | ||||||||||||
Weighted-average common shares outstanding - diluted | 1,123.2 | ||||||||||||
Common Stock, Shares, Outstanding | 1,214.8 | ||||||||||||
Subsequent Event | |||||||||||||
Employee Stock Ownership Plan (ESOP), Shares in ESOP | 4.6 | ||||||||||||
Adjustment for TDCC Basic Common Shares Outstanding in Pre-Merger Period | 2.4 | ||||||||||||
TDCC Shares to Dow Inc Shares Conversion Factor | 61.51% | ||||||||||||
Subsequent Event | DowDuPont | |||||||||||||
Common Stock, Shares, Outstanding | 2,246.3 | ||||||||||||
Subsequent Event | Dow Inc. [Member] | |||||||||||||
Common Stock, Shares, Outstanding | 747.2 |
INVENTORIES (Schedule of Invent
INVENTORIES (Schedule of Inventories) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 4,313 | $ 3,888 |
Work in process | 1,335 | 906 |
Raw materials | 674 | 631 |
Supplies | 826 | 790 |
Total | 7,148 | 6,215 |
Adjustment of inventories to a LIFO basis | (249) | (170) |
Total inventories | $ 6,899 | $ 6,045 |
PROPERTY (Schedule of Property)
PROPERTY (Schedule of Property) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Total property | $ 53,984 | $ 52,809 | |
Depreciation expense | 2,174 | 1,955 | $ 1,729 |
Capitalized interest | 88 | 240 | $ 243 |
Land and land improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property | $ 2,059 | 1,868 | |
Land and land improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives (Years) | 0 years | ||
Land and land improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives (Years) | 25 years | ||
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Total property | $ 4,745 | 4,600 | |
Buildings | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives (Years) | 5 years | ||
Buildings | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives (Years) | 50 years | ||
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property | $ 40,250 | 38,131 | |
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives (Years) | 3 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives (Years) | 25 years | ||
Other property | |||
Property, Plant and Equipment [Line Items] | |||
Total property | $ 5,084 | 4,969 | |
Other property | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives (Years) | 3 years | ||
Other property | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives (Years) | 50 years | ||
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Total property | $ 1,846 | $ 3,241 |
NONCONSOLIDATED AFFILIATES (Nar
NONCONSOLIDATED AFFILIATES (Narrative) (Details) $ in Millions | Apr. 04, 2017shares | Dec. 31, 2018USD ($)jointventures | Dec. 31, 2016USD ($) | Dec. 31, 2018USD ($)jointventures | Dec. 31, 2017USD ($)jointventures | Dec. 31, 2016USD ($) | Jul. 31, 2015USD ($)shares |
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investment, Dividends or Distributions | $ 663 | $ 654 | $ 612 | ||||
Noncash Dividend | 7 | ||||||
Investment in nonconsolidated affiliates | $ 3,320 | $ 2,974 | $ 3,320 | $ 3,107 | $ 2,974 | ||
Equity Method Investment, Ownership Interest, Number of Affiliates | jointventures | 38 | 38 | 39 | ||||
SCG-Dow Group | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 50.00% | 50.00% | |||||
Exclusive of additional differences for Dow Corning and MEGlobal | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | $ 39 | $ 39 | $ 63 | ||||
EQUATE Petrochemical Company K.S.C. | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | (502) | (502) | (516) | ||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity, Portion Amortized Over Remaining Useful Life | 184 | 184 | 200 | ||||
Investment in nonconsolidated affiliates | $ 131 | $ 131 | $ 42 | ||||
Ownership percentage | 42.50% | 42.50% | 42.50% | 42.50% | 42.50% | ||
Sadara Chemical Company | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 35.00% | 35.00% | 35.00% | 35.00% | 35.00% | ||
Equity Method Investment, Conversion of Notes Receivable to Equity | $ 70 | $ 312 | $ 718 | ||||
AgroFresh | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | $ 101 | $ 101 | $ 92 | ||||
Investment in nonconsolidated affiliates | $ 210 | ||||||
Equity Method Investment, Additional Information | shares | 17,500,000 | ||||||
Ownership percentage | 42.00% | 42.00% | 36.00% | 35.00% | |||
Equity Method Investment, Other than Temporary Impairment | $ 143 | ||||||
Equity Method Investee | SCG-Dow Group | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Concentration Risk, Percentage | 2.00% | 3.00% | 3.00% | ||||
Equity Method Investee | Sadara Chemical Company | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Noncurrent receivables, Balance Due From Nonconsolidated Affiliates | $ 0 | $ 0 | $ 275 | ||||
Increase (Decrease) in Notes Receivable, Related Parties | $ 735 | ||||||
Concentration Risk, Percentage | 9.00% | 4.00% | |||||
Variable Interest Entity, Not Primary Beneficiary | AgroFresh | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investment, Shares Purchased | shares | 5,070,358 | ||||||
Dow | Variable Interest Entity, Not Primary Beneficiary | AgroFresh | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investment, Shares Purchased | shares | 5,070,358 | ||||||
Equity Method Investment. Percentage of Outstanding Common Stock Purchased | 10.00% |
NONCONSOLIDATED AFFILIATES (Imp
NONCONSOLIDATED AFFILIATES (Impact of Sales to Nonconsolidated Affiliates) (Details) - Equity Method Investee | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Sadara Chemical Company | |||
Schedule of Equity Method Investments [Line Items] | |||
Concentration Risk, Percentage | 9.00% | 4.00% | |
SCG-Dow Group | |||
Schedule of Equity Method Investments [Line Items] | |||
Concentration Risk, Percentage | 2.00% | 3.00% | 3.00% |
Customer Concentration Risk | MEGlobal | |||
Schedule of Equity Method Investments [Line Items] | |||
Concentration Risk, Percentage | 1.00% | 1.00% | 1.00% |
Industrial Intermediates & Infrastructure [Member] | Customer Concentration Risk | MEGlobal | |||
Schedule of Equity Method Investments [Line Items] | |||
Concentration Risk, Percentage | 2.00% | 2.00% | 2.00% |
Packaging & Specialty Plastics [Member] | Customer Concentration Risk | MEGlobal | |||
Schedule of Equity Method Investments [Line Items] | |||
Concentration Risk, Percentage | 1.00% | 1.00% | 1.00% |
NONCONSOLIDATED AFFILIATES (Bal
NONCONSOLIDATED AFFILIATES (Balances Due To or Due From Nonconsolidated Affiliates) (Details) - Equity Method Investee - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | ||
Accounts and notes receivable - Other | $ 556 | $ 417 |
Noncurrent receivables | 8 | 282 |
Total assets | 564 | 699 |
Accounts payable - Other | $ 1,347 | $ 1,271 |
NONCONSOLIDATED AFFILIATES (Sch
NONCONSOLIDATED AFFILIATES (Schedule of the Company's Direct or Indirect Ownership Interest in Principal Nonconsolidated Affiliates) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Investment in nonconsolidated affiliates | $ 3,320 | $ 3,107 | $ 2,974 |
Equity in earnings of nonconsolidated affiliates | $ 555 | $ 394 | $ 187 |
EQUATE Petrochemical Company K.S.C. | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 42.50% | 42.50% | 42.50% |
Investment in nonconsolidated affiliates | $ 131 | $ 42 | |
The Kuwait Olefins Company K.S.C. | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 42.50% | 42.50% | 42.50% |
The Kuwait Styrene Company KSC | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 42.50% | 42.50% | 42.50% |
Map Ta Phut Olefins Company | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 32.77% | 32.77% | 32.77% |
Equity Method Investment, Ownership Percentage, Direct | 20.27% | ||
Equity Method Investment, Ownership Percentage, Indirect | 12.50% | ||
Sadara Chemical Company | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 35.00% | 35.00% | 35.00% |
Siam Polyethylene Company Limited | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | 50.00% | 50.00% |
Siam Polystyrene Company Limited | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | 50.00% | 50.00% |
Siam Styrene Monomer Co, Ltd | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | 50.00% | 50.00% |
Siam Synthetic Latex Company Limited | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | 50.00% | 50.00% |
Principal Nonconsolidated Affiliates | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in nonconsolidated affiliates | $ 2,876 | $ 2,657 | |
Equity in earnings of nonconsolidated affiliates | $ 561 | $ 347 | $ 241 |
NONCONSOLIDATED AFFILIATES (Sum
NONCONSOLIDATED AFFILIATES (Summarized Financial Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Percent of principal nonconsolidated entities financial information which is presented | 100.00% | ||
Principal Nonconsolidated Affiliates | |||
Schedule of Equity Method Investments [Line Items] | |||
Current assets | $ 7,553 | $ 6,833 | |
Noncurrent assets | 25,971 | 26,778 | |
Total assets | 33,524 | 33,611 | |
Current liabilities | 5,163 | 4,678 | |
Noncurrent liabilities | 19,089 | 20,100 | |
Total liabilities | 24,252 | 24,778 | |
Noncontrolling interests | 72 | 33 | |
Sales | 14,461 | 11,629 | $ 10,825 |
Gross profit | 2,320 | 1,992 | 1,975 |
Net income | $ 1,173 | $ 689 | $ 410 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Goodwill) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | |||
Net goodwill, beginning balance | $ 9,833 | $ 7,541 | |
Dissolution of joint venture | 48 | ||
Foreign currency impact | (69) | 242 | |
Goodwill, Purchase Accounting Adjustments | 82 | (96) | |
Other | (5) | ||
Net goodwill, ending balance | $ 9,833 | 9,846 | 9,833 |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Global Ethylene Acrylic Acid (EAA) | |||
Goodwill [Roll Forward] | |||
Goodwill, Written off Related to Sale of Business Unit | (23) | ||
Coatings and Performance Monomers | |||
Goodwill [Roll Forward] | |||
Net goodwill, beginning balance | 1,071 | ||
Goodwill impairment | (1,491) | ||
Net goodwill, ending balance | 1,071 | 1,071 | |
ECP [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, Acquired During Period | 3,617 | ||
Performance Materials & Coatings [Member] | |||
Goodwill [Roll Forward] | |||
Net goodwill, beginning balance | 3,689 | 4,938 | |
Goodwill, Written off Related to Sale of Business Unit | 0 | ||
Dissolution of joint venture | 48 | ||
Goodwill impairment | (1,491) | (1,491) | |
Foreign currency impact | (39) | 194 | |
Goodwill, Purchase Accounting Adjustments | 0 | 0 | |
Other | 0 | ||
Net goodwill, ending balance | 3,689 | 3,650 | 3,689 |
Performance Materials & Coatings [Member] | Coatings and Performance Monomers | |||
Goodwill [Roll Forward] | |||
Goodwill impairment | (1,491) | ||
Performance Materials & Coatings [Member] | ECP [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, Acquired During Period | 0 | ||
Industrial Intermediates & Infrastructure [Member] | |||
Goodwill [Roll Forward] | |||
Net goodwill, beginning balance | 1,101 | 1,085 | |
Goodwill, Written off Related to Sale of Business Unit | 0 | ||
Dissolution of joint venture | 0 | ||
Goodwill impairment | 0 | ||
Foreign currency impact | (6) | 16 | |
Goodwill, Purchase Accounting Adjustments | 0 | 0 | |
Other | 0 | ||
Net goodwill, ending balance | 1,101 | 1,095 | 1,101 |
Industrial Intermediates & Infrastructure [Member] | ECP [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, Acquired During Period | 0 | ||
Packaging & Specialty Plastics [Member] | |||
Goodwill [Roll Forward] | |||
Net goodwill, beginning balance | 5,043 | 1,518 | |
Goodwill, Written off Related to Sale of Business Unit | (23) | ||
Dissolution of joint venture | 0 | ||
Goodwill impairment | 0 | ||
Foreign currency impact | (24) | 32 | |
Goodwill, Purchase Accounting Adjustments | 82 | (96) | |
Other | (5) | ||
Net goodwill, ending balance | $ 5,043 | $ 5,101 | 5,043 |
Packaging & Specialty Plastics [Member] | ECP [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, Acquired During Period | $ 3,617 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Annual Goodwill Impairment Test) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($)ReportingUnits | Dec. 31, 2017USD ($)ReportingUnits | Dec. 31, 2016USD ($)ReportingUnits | |
Goodwill [Line Items] | ||||
Number of Reporting Units, Quantitative Testing | ReportingUnits | 1 | 6 | 2 | |
Goodwill | $ 9,833 | $ 9,846 | $ 9,833 | $ 7,541 |
Coatings and Performance Monomers | ||||
Goodwill [Line Items] | ||||
Goodwill impairment | (1,491) | |||
Goodwill | 1,071 | 1,071 | ||
Performance Materials & Coatings [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Impaired, Accumulated Impairment Loss | 1,491 | 1,491 | 1,491 | |
Goodwill impairment | (1,491) | (1,491) | ||
Goodwill | 3,689 | 3,650 | 3,689 | 4,938 |
Performance Materials & Coatings [Member] | Coatings and Performance Monomers | ||||
Goodwill [Line Items] | ||||
Goodwill impairment | (1,491) | |||
Industrial Intermediates & Infrastructure [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Impaired, Accumulated Impairment Loss | 309 | 309 | 309 | |
Goodwill impairment | 0 | |||
Goodwill | $ 1,101 | $ 1,095 | $ 1,101 | $ 1,085 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Other Intangible Assets) (Details) - USD ($) $ in Millions | Aug. 01, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 31, 2017 |
Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | $ 7,601 | $ 7,568 | ||
Other Intangible Assets, Accumulated Amortization | (3,379) | (2,842) | ||
Finite-Lived Intangible Assets, Net | 4,222 | 4,726 | ||
Intangible Assets, Gross (Excluding Goodwill) | 7,604 | 7,571 | ||
Other intangible assets | 4,225 | 4,729 | ||
In-process research and development (IPR&D) | ||||
Other Intangible Assets [Line Items] | ||||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 3 | 3 | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill), Accumulated Amortization | 0 | 0 | ||
Developed technology | ||||
Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 2,634 | 2,630 | ||
Other Intangible Assets, Accumulated Amortization | (1,252) | (1,021) | ||
Finite-Lived Intangible Assets, Net | 1,382 | 1,609 | ||
Software | ||||
Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 1,404 | 1,323 | ||
Other Intangible Assets, Accumulated Amortization | (805) | (727) | ||
Finite-Lived Intangible Assets, Net | 599 | 596 | ||
Trademarks/tradenames | ||||
Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 352 | 366 | ||
Other Intangible Assets, Accumulated Amortization | (329) | (284) | ||
Finite-Lived Intangible Assets, Net | 23 | 82 | ||
Customer-related | ||||
Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 3,211 | 3,247 | ||
Other Intangible Assets, Accumulated Amortization | (993) | (810) | ||
Finite-Lived Intangible Assets, Net | 2,218 | 2,437 | ||
Other | ||||
Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 0 | 2 | ||
Other Intangible Assets, Accumulated Amortization | 0 | 0 | ||
Finite-Lived Intangible Assets, Net | $ 0 | $ 2 | ||
ECP [Member] | ||||
Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | $ 1,484 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | |||
Other intangible assets | 1,484 | |||
ECP [Member] | Developed technology | ||||
Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 366 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years | |||
ECP [Member] | Trademarks/tradenames | ||||
Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 20 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | |||
ECP [Member] | Customer-related | ||||
Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | $ 1,098 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Amortization Expense of Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization Expense from Continuing Operations | $ 469 | $ 400 | $ 316 | |
Other intangible assets, excluding software | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization Expense from Continuing Operations | 469 | 400 | 316 | |
Software, included in “Cost of sales” from continuing operations | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization Expense from Continuing Operations | $ 93 | $ 82 | $ 69 | |
2016 Restructuring | In-process research and development (IPR&D) | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 11 |
(Schedule of Future Amortizatio
(Schedule of Future Amortization Expense of Intangible Assets) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2019 | $ 518 |
2020 | 492 |
2021 | 470 |
2022 | 413 |
2023 | $ 392 |
TRANSFERS OF FINANCIAL ASSETS_2
TRANSFERS OF FINANCIAL ASSETS (Sale of Trade Accounts Receivable in North America and Europe) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Transfers and Servicing [Abstract] | |||
Recognized gain (loss) on sale of receivables | $ (7) | $ (25) | $ (20) |
Carrying value of interests held | $ 0 | $ 677 | |
Percentage of anticipated credit losses | 0.00% | 2.64% | |
Impact to carrying value - 10% adverse change | $ 0 | $ 0 | |
Impact to carrying value - 20% adverse change | 0 | 1 | |
Sale of receivables | 0 | 1 | 1 |
Collections reinvested in revolving receivables | 0 | 21,293 | 21,652 |
Interests in conduits | 657 | 9,462 | $ 8,551 |
Delinquencies on sold receivables still outstanding | 0 | 82 | |
Trade accounts receivable outstanding and derecognized | $ 0 | 612 | |
Repurchase of previously sold receivables | $ 5 |
NOTES PAYABLE, LONG-TERM DEBT_3
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES (Schedule of Notes Payable) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Short-term Debt [Line Items] | ||
Total notes payable | $ 298 | $ 481 |
Year-end average interest rates | 8.28% | 4.37% |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Total notes payable | $ 10 | $ 231 |
Notes payable to banks and other lenders | ||
Short-term Debt [Line Items] | ||
Total notes payable | $ 288 | $ 250 |
NOTES PAYABLE, LONG-TERM DEBT_4
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES (Schedule of Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Unamortized debt discount and issuance costs | $ (334) | $ (345) |
Long-term debt due within one year | (338) | (748) |
Long-term debt | 19,253 | $ 19,757 |
Maturities of Long-term Debt [Abstract] | ||
2019 | 338 | |
2020 | 1,832 | |
2021 | 6,247 | |
2022 | 1,509 | |
2023 | $ 480 | |
Promissory notes and debentures | Final maturity 2018 | ||
Debt Instrument [Line Items] | ||
Weighted average rate | 0.00% | 5.78% |
Long-term debt, gross | $ 0 | $ 339 |
Promissory notes and debentures | Final maturity 2019 | ||
Debt Instrument [Line Items] | ||
Weighted average rate | 9.80% | 8.55% |
Long-term debt, gross | $ 7 | $ 2,122 |
Promissory notes and debentures | Final maturity 2020 | ||
Debt Instrument [Line Items] | ||
Weighted average rate | 4.46% | 4.46% |
Long-term debt, gross | $ 1,547 | $ 1,547 |
Promissory notes and debentures | Final maturity 2021 | ||
Debt Instrument [Line Items] | ||
Weighted average rate | 4.71% | 4.71% |
Long-term debt, gross | $ 1,424 | $ 1,424 |
Promissory notes and debentures | Final maturity 2022 | ||
Debt Instrument [Line Items] | ||
Weighted average rate | 3.50% | 3.50% |
Long-term debt, gross | $ 1,373 | $ 1,373 |
Promissory notes and debentures | Final maturity 2023 | ||
Debt Instrument [Line Items] | ||
Weighted average rate | 7.64% | 7.64% |
Long-term debt, gross | $ 325 | $ 325 |
Promissory notes and debentures | Final maturity 2024 and thereafter | ||
Debt Instrument [Line Items] | ||
Weighted average rate | 5.73% | 5.92% |
Long-term debt, gross | $ 8,859 | $ 6,857 |
Promissory notes and debentures | U.S. dollar loans, various rates and maturities | ||
Debt Instrument [Line Items] | ||
Weighted average rate | 3.59% | 2.44% |
Long-term debt, gross | $ 4,533 | $ 4,564 |
Promissory notes and debentures | Foreign currency loans, various rates and maturities | ||
Debt Instrument [Line Items] | ||
Weighted average rate | 3.20% | 2.98% |
Long-term debt, gross | $ 708 | $ 806 |
Medium-term notes, varying maturities through 2025 | ||
Debt Instrument [Line Items] | ||
Weighted average rate | 3.26% | 3.20% |
Long-term debt, gross | $ 778 | $ 873 |
Tax-exempt bonds, varying maturities through 2038 | ||
Debt Instrument [Line Items] | ||
Weighted average rate | 0.00% | 5.66% |
Long-term debt, gross | $ 0 | $ 343 |
Capital Lease Obligations | ||
Debt Instrument [Line Items] | ||
Capital lease obligations | $ 371 | $ 277 |
NOTES PAYABLE, LONG-TERM DEBT_5
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES (Narrative) (Details) € in Millions, $ in Millions | May 31, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018EUR (€) | Nov. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 01, 2016USD ($) |
Debt Instrument [Line Items] | |||||||||
Loss on early extinguishment of debt | $ (54) | $ 0 | $ 0 | ||||||
Proceeds from issuance of long-term debt | 1,999 | 0 | 30 | ||||||
Committed Credit | $ 12,137 | 12,137 | |||||||
Outstanding letters of credit | 400 | 400 | |||||||
DCC Transaction | |||||||||
Debt Instrument [Line Items] | |||||||||
Loss on early extinguishment of debt | 15 | ||||||||
Long-Term Debt | $ 4,672 | ||||||||
Primary Beneficiary | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayment of long-term debt | 119 | 128 | |||||||
Proceeds from issuance of long-term debt | 28 | ||||||||
Tax-exempt bonds, varying maturities through 2038 | Sundry Income (Expense), Net | |||||||||
Debt Instrument [Line Items] | |||||||||
Loss on early extinguishment of debt | (6) | ||||||||
5.7% Notes Due 2018 | Promissory notes and debentures | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount redeemed | $ 333 | $ 333 | |||||||
Stated interest rate | 5.70% | 5.70% | 5.70% | ||||||
Long Term Debt Repayment - Variable Interest Entity | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of Debt | $ 138 | ||||||||
Tax-exempt Bonds, varying maturities through 2038 | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of Debt | 343 | ||||||||
InterNotes redeemed | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of Notes Payable | $ 91 | ||||||||
InterNotes redeemed | Promissory notes and debentures | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount redeemed | 52 | ||||||||
Senior Unsecured Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount on Issuance | $ 2,000 | ||||||||
Senior Unsecured Notes, 5 .55%, Due 2048 | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 5.55% | ||||||||
Debt Instrument, Face Amount on Issuance | $ 900 | ||||||||
Senior Unsecured Notes, 4.80%, Due 2028 | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 4.80% | ||||||||
Debt Instrument, Face Amount on Issuance | $ 600 | ||||||||
Senior Unsecured Notes, 4.55%, Due 2025 | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 4.55% | ||||||||
Debt Instrument, Face Amount on Issuance | $ 500 | ||||||||
8.55% Notes Retired | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 8.55% | 8.55% | 8.55% | ||||||
Repayments of Notes Payable | $ 2,100 | ||||||||
8.55% Notes Retired | Impact to Sundry income (expense) | |||||||||
Debt Instrument [Line Items] | |||||||||
Loss on early extinguishment of debt | $ (48) | ||||||||
6.0% Notes Due 2017 | Promissory notes and debentures | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount redeemed | $ 436 | ||||||||
Stated interest rate | 6.00% | ||||||||
Redemption of Internotes | Promissory notes and debentures | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount redeemed | $ 32 | ||||||||
2.5% due February 15, 2016 | Promissory notes and debentures | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount redeemed | $ 349 | ||||||||
Stated interest rate | 2.50% | ||||||||
Accounts Receivable Securitization Facility, European Facility | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Committed Credit | € | € 400 | ||||||||
DCC Term Loan Facility | Bilateral Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from Lines of Credit | $ 4,500 | ||||||||
Accounts Receivable Securitization Facility, North American Facility | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Committed Credit | $ 800 |
NOTES PAYABLE, LONG-TERM DEBT_6
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES (Schedule of Committed and Available Credit Facilities) (Details) - USD ($) $ in Millions | May 31, 2016 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | ||
Committed Credit | $ 12,137 | |
Credit Available | 7,637 | |
Revolving Credit Facility | Five Year Competitive Advance and Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Committed Credit | 5,000 | |
Credit Available | 5,000 | |
Revolving Credit Facility | Bilateral Revolving Credit Facility, Due March 2019 | ||
Line of Credit Facility [Line Items] | ||
Committed Credit | 100 | |
Credit Available | 100 | |
Revolving Credit Facility | Bilateral Revolving Credit Facility, Due October 2019 | ||
Line of Credit Facility [Line Items] | ||
Committed Credit | 100 | |
Credit Available | 100 | |
Revolving Credit Facility | Bilateral Revolving Credit Facility, Due March 2020, Facility One | ||
Line of Credit Facility [Line Items] | ||
Committed Credit | 100 | |
Credit Available | 100 | |
Revolving Credit Facility | Bilateral Revolving Credit Facility, Due March 2020, Facility Two | ||
Line of Credit Facility [Line Items] | ||
Committed Credit | 280 | |
Credit Available | 280 | |
Revolving Credit Facility | Term Loan Facility, Due December 2021 | ||
Line of Credit Facility [Line Items] | ||
Committed Credit | 4,500 | |
Credit Available | 0 | |
Revolving Credit Facility | Bilateral Revolving Credit Facility, Due May 2020 | ||
Line of Credit Facility [Line Items] | ||
Committed Credit | 200 | |
Credit Available | 200 | |
Revolving Credit Facility | Bilateral Revolving Credit Facility, Due July 2020 | ||
Line of Credit Facility [Line Items] | ||
Committed Credit | 200 | |
Credit Available | 200 | |
Revolving Credit Facility | Bilateral Revolving Credit Facility, Due August 2020 | ||
Line of Credit Facility [Line Items] | ||
Committed Credit | 100 | |
Credit Available | 100 | |
Revolving Credit Facility | North American Securitization Facility, Due September 2019 | ||
Line of Credit Facility [Line Items] | ||
Committed Credit | 800 | |
Credit Available | 800 | |
Revolving Credit Facility | European Securitization Facility, Due October 2020 | ||
Line of Credit Facility [Line Items] | ||
Committed Credit | 457 | |
Credit Available | 457 | |
Bilateral Revolving Credit Facility | Bilateral Revolving Credit Facility, Due March 2020, Facility Three | ||
Line of Credit Facility [Line Items] | ||
Committed Credit | 100 | |
Credit Available | 100 | |
Bilateral Revolving Credit Facility | Bilateral Revolving Credit Facility, Due March 2020, Facility Four | ||
Line of Credit Facility [Line Items] | ||
Committed Credit | 200 | |
Credit Available | $ 200 | |
Bilateral Revolving Credit Facility | DCC Term Loan Facility | ||
Line of Credit Facility [Line Items] | ||
Proceeds from credit facility | $ 4,500 |
NOTES PAYABLE, LONG-TERM DEBT_7
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES (Debt Covenants) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | |
Amount at which a failure to pay results in repayment acceleration | $ 100 |
Amount of principal to be accelerated upon default | 400 |
Amount of judgment which will cause a default | $ 400 |
Revolving Credit Facility | Five Year Competitive Advance and Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Ratio of total indebtedness to total capitalization | 0.65 |
Aggregate amount outstanding to trigger indebtedness to total capitalization covenant | $ 500 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES (Environmental Matters) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Site Contingency [Line Items] | ||||
Environmental Remediation Expense | $ (176) | $ (163) | $ (503) | |
Capital expenditures for environmental protection | 55 | 57 | 57 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||
Accrual adjustment | 176 | 163 | ||
Payments against reserve | (208) | (219) | ||
Foreign currency impact | (23) | 17 | ||
Other Environmental Matters | ||||
Site Contingency [Line Items] | ||||
Accrued obligations for environmental matters | $ 904 | 865 | 904 | 904 |
Environmental Remediation Expense | (295) | (295) | ||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||
Balance at Jan 1 | 865 | 904 | ||
Balance at Dec 31 | $ 904 | 810 | 865 | 904 |
Other Environmental Matters | Packaging & Specialty Plastics [Member] | ||||
Site Contingency [Line Items] | ||||
Environmental Remediation Expense | (2) | |||
Other Environmental Matters | Industrial Intermediates & Infrastructure [Member] | ||||
Site Contingency [Line Items] | ||||
Environmental Remediation Expense | (1) | |||
Other Environmental Matters | Corporate Segment [Member] | ||||
Site Contingency [Line Items] | ||||
Environmental Remediation Expense | $ (292) | |||
Other Environmental Matters | Superfund Sites | ||||
Site Contingency [Line Items] | ||||
Accrued obligations for environmental matters | 152 | 152 | ||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||
Balance at Jan 1 | 152 | |||
Balance at Dec 31 | 156 | 152 | ||
Other Environmental Matters, Off-Site Matters | ||||
Site Contingency [Line Items] | ||||
Accrued obligations for environmental matters | 83 | 83 | ||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||
Balance at Jan 1 | 83 | |||
Balance at Dec 31 | $ 95 | $ 83 |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES (Asbestos-Related Matters of Union Carbide Corporation) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2002 | |
Loss Contingencies [Line Items] | |||||
Asbestos-related charge | $ 0 | $ 0 | $ 1,113 | ||
Corporate Segment [Member] | |||||
Loss Contingencies [Line Items] | |||||
Asbestos-related charge | 1,113 | ||||
Union Carbide Corporation | Asbestos Related Matters | |||||
Loss Contingencies [Line Items] | |||||
Liability for asbestos-related pending and future claims | $ 1,260 | $ 1,369 | |||
Percentage of recorded asbestos liability related to pending claims | 16.00% | 16.00% | |||
Percentage of recorded asbestos liability related to future claims | 84.00% | 84.00% | |||
Union Carbide Corporation | Asbestos Related Matters, Pending and Future Claims | |||||
Loss Contingencies [Line Items] | |||||
Liability for asbestos-related pending and future claims | $ 2,200 | ||||
Union Carbide Corporation | Asbestos Related Matters, Pending and Future Claims | Corporate Segment [Member] | |||||
Loss Contingencies [Line Items] | |||||
Asbestos-related charge | $ 104 | ||||
Union Carbide Corporation | Asbestos Related Matters, Pending and Future Claims | Minimum | |||||
Loss Contingencies [Line Items] | |||||
Estimate of possible loss | 502 | 502 | |||
Union Carbide Corporation | Asbestos Related Matters, Pending and Future Claims | Maximum | |||||
Loss Contingencies [Line Items] | |||||
Estimate of possible loss | 565 | 565 | |||
Union Carbide Corporation | Asbestos Related Matters, Defense and Processing Costs | Corporate Segment [Member] | |||||
Loss Contingencies [Line Items] | |||||
Asbestos-related charge | 1,009 | ||||
Union Carbide Corporation | Asbestos Related Matters, Defense and Processing Costs | Minimum | |||||
Loss Contingencies [Line Items] | |||||
Estimate of possible loss | 1,009 | 1,009 | |||
Union Carbide Corporation | Asbestos Related Matters, Defense and Processing Costs | Maximum | |||||
Loss Contingencies [Line Items] | |||||
Estimate of possible loss | $ 1,081 | $ 1,081 |
COMMITMENTS AND CONTINGENT LI_5
COMMITMENTS AND CONTINGENT LIABILITIES (Urethane Matters) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2013 | Mar. 31, 2016 | Mar. 31, 2013 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | |||||
Gain (loss) related to litigation settlement | $ (137) | $ (1,219) | |||
Industrial Intermediates & Infrastructure [Member] | |||||
Loss Contingencies [Line Items] | |||||
Gain (loss) related to litigation settlement | $ 0 | (1,235) | |||
Urethane Antitrust Litigation | |||||
Loss Contingencies [Line Items] | |||||
Litigation settlement | $ 835 | ||||
Urethane Matters Class Action Lawsuit | |||||
Loss Contingencies [Line Items] | |||||
Damages awarded | $ 1,060 | ||||
Urethane Matters Class Action Lawsuit | Industrial Intermediates & Infrastructure [Member] | |||||
Loss Contingencies [Line Items] | |||||
Gain (loss) related to litigation settlement | (835) | ||||
Urethane Matters Class Action Lawsuit | Pending Litigation | |||||
Loss Contingencies [Line Items] | |||||
Damages awarded | $ 400 | ||||
Urethane Matters Opt-out Cases | |||||
Loss Contingencies [Line Items] | |||||
Litigation settlement | $ 400 | ||||
Urethane Matters Opt-out Cases | Industrial Intermediates & Infrastructure [Member] | |||||
Loss Contingencies [Line Items] | |||||
Gain (loss) related to litigation settlement | $ (400) |
COMMITMENTS AND CONTINGENT LI_6
COMMITMENTS AND CONTINGENT LIABILITIES (Rocky Flats Matter) (Details) - Rocky Flats Matter - USD ($) $ in Millions | Jan. 17, 2017 | Dec. 31, 2016 | Dec. 31, 2005 | Jan. 26, 2017 |
Loss Contingencies [Line Items] | ||||
Settlement amount | $ 131 | |||
Proceeds from indemnity | $ 131 | |||
Escrow deposit | $ 130 | |||
Dow Chemical and Rockwell International Corporation | ||||
Loss Contingencies [Line Items] | ||||
Damages awarded | $ 926 | |||
Settlement amount | $ 375 |
COMMITMENTS AND CONTINGENT LI_7
COMMITMENTS AND CONTINGENT LIABILITIES (Dow Silicones Chapter 11 Related Matters) (Details) - Dow Silicones Corporation - USD ($) $ in Millions | Jun. 01, 2016 | Jun. 01, 2004 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 |
Loss Contingencies [Line Items] | ||||||
Indemnification percentage | 50.00% | |||||
Indemnification asset | $ 0 | |||||
Between May 31, 2018 and May 31, 2023 | ||||||
Loss Contingencies [Line Items] | ||||||
Indemnification loss cap | $ 1,000 | |||||
After May 31, 2023 | ||||||
Loss Contingencies [Line Items] | ||||||
Indemnification loss cap | 0 | |||||
Commercial Creditor Issues | Minimum | ||||||
Loss Contingencies [Line Items] | ||||||
Estimate of possible loss | $ 77 | |||||
Commercial Creditor Issues | Maximum | ||||||
Loss Contingencies [Line Items] | ||||||
Estimate of possible loss | 260 | |||||
Commercial Creditors Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Decrease in liability | $ 33 | |||||
Estimated litigation liability | 82 | 78 | ||||
Breast Implant and Other Products Liability Claims | ||||||
Loss Contingencies [Line Items] | ||||||
Maximum net present value | $ 2,350 | |||||
Discount rate | 7.00% | |||||
Undiscounted product liability | 3,876 | |||||
Portion available to fund the Litigation Facility | $ 400 | |||||
Payments for product liabilities | 1,762 | |||||
Unexpended balance | 118 | |||||
Product liability | $ 290 | $ 263 | 263 | |||
Decrease in liability | $ 16 | |||||
Liability maximum capped amount | 2,114 | |||||
Breast Implant and Other Products Liability Claims | Accrued and other current liabilities | ||||||
Loss Contingencies [Line Items] | ||||||
Product liability | 111 | |||||
Breast Implant and Other Products Liability Claims | Other Noncurrent Obligations | ||||||
Loss Contingencies [Line Items] | ||||||
Product liability | $ 152 | $ 263 | ||||
Commercial Creditors Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Payments for legal settlements | $ 1,500 |
COMMITMENTS AND CONTINGENT LI_8
COMMITMENTS AND CONTINGENT LIABILITIES (Dow v Nova) (Details) $ in Millions, $ in Millions | Jul. 06, 2017USD ($) | Jun. 29, 2017USD ($) | Jun. 29, 2017CAD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018USD ($) |
Loss Contingencies [Line Items] | |||||||
Gain (loss) related to litigation settlement | $ (137) | $ (1,219) | |||||
Packaging & Specialty Plastics [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Gain (loss) related to litigation settlement | (137) | $ 0 | |||||
Dow V. Nova Chemicals Corporation Patent Infringement Matter | |||||||
Loss Contingencies [Line Items] | |||||||
Settlement amount | $ 495 | $ 645 | |||||
Proceeds from settlements | $ 501 | ||||||
Estimated liability | $ 341 | $ 341 | |||||
Dow V. Nova Chemicals Corporation Patent Infringement Matter | Packaging & Specialty Plastics [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Gain (loss) related to litigation settlement | $ 160 | ||||||
Dow V. Nova Chemicals Corporation Patent Infringement Matter | Packaging & Specialty Plastics [Member] | Nonoperating Income (Expense) | |||||||
Loss Contingencies [Line Items] | |||||||
Gain (loss) related to litigation settlement | 137 | ||||||
Dow V. Nova Chemicals Corporation Patent Infringement Matter | Packaging & Specialty Plastics [Member] | Selling, General and Administrative Expenses | |||||||
Loss Contingencies [Line Items] | |||||||
Gain (loss) related to litigation settlement | $ 23 |
COMMITMENTS AND CONTINGENT LI_9
COMMITMENTS AND CONTINGENT LIABILITIES (Guarantees) (Table and Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Guarantees [Abstract] | |||
Maximum future payments | $ 5,158 | $ 5,323 | |
Recorded liability | 152 | 179 | |
Long-term debt | $ 19,591 | $ 20,505 | |
Sadara Chemical Company | |||
Guarantees [Abstract] | |||
Ownership interest | 35.00% | 35.00% | 35.00% |
Sadara Chemical Company | Total Project Financing | |||
Guarantees [Abstract] | |||
Principal amount | $ 12,500 | ||
Long-term debt | 11,700 | $ 12,400 | |
Guarantees | |||
Guarantees [Abstract] | |||
Maximum future payments | 4,273 | 4,434 | |
Recorded liability | 22 | 44 | |
Guarantees | Sadara Chemical Company | |||
Guarantees [Abstract] | |||
Maximum future payments | 4,200 | ||
Residual value guarantees | |||
Guarantees [Abstract] | |||
Maximum future payments | 885 | 889 | |
Recorded liability | $ 130 | $ 135 |
COMMITMENTS AND CONTINGENT L_10
COMMITMENTS AND CONTINGENT LIABILITIES (Operating Leases) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Leased Assets [Line Items] | |||
Rent expense | $ 675 | $ 644 | $ 549 |
Dow | |||
Minimum Lease Commitments | |||
2019 | 366 | ||
2020 | 329 | ||
2021 | 296 | ||
2022 | 269 | ||
2023 | 227 | ||
2024 and thereafter | 855 | ||
Total | $ 2,342 |
COMMITMENTS AND CONTINGENT L_11
COMMITMENTS AND CONTINGENT LIABILITIES (Asset Retirement Obligations) (Narrative) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)wellsbrinesandwellsmanufacturingsitescountries | Dec. 31, 2017USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Number of Manufacturing Sites | manufacturingsites | 113 | |
Number of Countries With Manufacturing Sites | countries | 31 | |
Conditional Asset Retirement Obligations Carrying Value | $ 22 | $ 19 |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance at Jan 1 | 100 | 104 |
Additional accruals | 9 | 2 |
Liabilities settled | (3) | (6) |
Accretion expense | 3 | 5 |
Revisions in estimated cash flows | 0 | (9) |
Other | 0 | 4 |
Balance at Dec 31 | $ 109 | $ 100 |
Asset retirement obligation discount rate | 3.54% | 2.04% |
Number of underground storage wells without conditional asset retirement obligation | wells | 37 | |
Number of underground brine, mining and other wells without conditional asset retirement obligation | brinesandwells | 128 |
STOCKHOLDERS' EQUITY (Merger wi
STOCKHOLDERS' EQUITY (Merger with DuPont) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Aug. 31, 2017 | |
Dow | ||||
Class of Stock [Line Items] | ||||
Dow to DowDuPont Share Exchange Ratio for Common Shares | 1 | |||
Treasury Stock | ||||
Class of Stock [Line Items] | ||||
Merger impact | $ 0 | $ (935) | $ 0 | |
Common Stock | ||||
Class of Stock [Line Items] | ||||
Merger impact | 0 | (3,107) | 0 | |
Additional Paid-in Capital | ||||
Class of Stock [Line Items] | ||||
Merger impact | $ 0 | $ (2,172) | $ 0 |
STOCKHOLDERS' EQUITY (Cumulativ
STOCKHOLDERS' EQUITY (Cumulative Convertible Perpetual Preferre Stock, Series A) (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 30, 2016 | Apr. 01, 2009 | Dec. 31, 2009 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 15, 2016 |
Class of Stock [Line Items] | |||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 24.2010 | ||||||
Convertible Preferred Stock Term of Conversion Share Price | $ 53.72 | ||||||
Share Price (in dollars per share) | $ 58.35 | ||||||
Preferred Stock, Value, Outstanding | $ 4,000 | ||||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Stock Issued During Period, Value, Treasury Stock Reissued Upon Preferred Stock Conversion | $ 96.8 | ||||||
Treasury Stock | |||||||
Class of Stock [Line Items] | |||||||
Stock Issued During Period, Value, Treasury Stock Reissued Upon Preferred Stock Conversion | $ 0 | $ 0 | $ (4,695) | ||||
Additional Paid-in Capital | |||||||
Class of Stock [Line Items] | |||||||
Stock Issued During Period, Value, Treasury Stock Reissued Upon Preferred Stock Conversion | $ 0 | $ 0 | $ (695) | ||||
Series A Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Conversion of Stock, Shares Converted (in shares) | 4,000,000 | ||||||
Preferred Stock, Par or Stated Value Per Share | $ 1 | ||||||
Preferred Stock, Dividend Rate, Percentage | 8.50% | ||||||
Amount of ongoing dividends per quarter | $ 85 | ||||||
Berkshire Hathaway [Member] | Series A Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Stock issued during period, value | $ 3,000 | ||||||
Issued (in shares) | 3,000,000 | ||||||
Kuwait Investment Authority [Member] | Series A Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Stock issued during period, value | $ 1,000 | ||||||
Issued (in shares) | 1,000,000 |
STOCKHOLDERS' EQUITY (Common St
STOCKHOLDERS' EQUITY (Common Stock) (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Non-Employee Directors | Common Stock | ||
Class of Stock [Line Items] | ||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0 | 0 |
STOCKHOLDERS' EQUITY (Retained
STOCKHOLDERS' EQUITY (Retained Earnings) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |||
Dividends declared (in dollars per share) | $ 1.38 | $ 1.84 | |
Undistributed Earnings of Nonconsolidated Affiliates | $ 1,824 | $ 1,856 |
STOCKHOLDERS' EQUITY (Employee
STOCKHOLDERS' EQUITY (Employee Stock Ownership Plan) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2009 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Apr. 02, 2009 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Debt of ESOP | $ 10 | $ 17 | |||
Dow ESOP | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
ESOP, compensation expense | $ 144 | $ 200 | $ 161 | ||
Shares allocated to participants' accounts | 15.3 | ||||
Employee Stock Ownership Plan (ESOP), Shares in ESOP | 21.8 | ||||
Employee Stock Ownership Plan (ESOP), Number of Committed-to-be-Released Shares | 1.5 | ||||
Number of unearned shares | 5 | ||||
Fair value of unearned shares | $ 267 | ||||
Rohm And Haas | Rohm and Haas ESOP | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Debt of ESOP | $ 78 | ||||
Interest rate on debt of ESOP | 9.80% |
STOCKHOLDERS' EQUITY (Treasury
STOCKHOLDERS' EQUITY (Treasury Stock) (Details) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | 56 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Aug. 30, 2017 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Share buy-back program authorized amount | $ 9,500 | |||
Payments for the repurchase of common stock | $ 0 | $ 0 | $ 916 | $ 8,100 |
To employees and non-employee directors | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Treasury Shares Issued Under Stock-Based Compensation Programs | 14,195 | 14,494 |
STOCKHOLDERS' EQUITY (Shares of
STOCKHOLDERS' EQUITY (Shares of Dow Common Stock) (Details) - Dow - shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Aug. 31, 2017 | Dec. 31, 2015 | |
Issued | ||||
Schedule of Common Stock and Treasury Stock Outstanding Roll Forward [Line Items] | ||||
Shares, Outstanding | 1,242,795 | 0 | 1,242,795 | |
Issued (in shares) | 0 | 0 | ||
Conversion to DowDuPont shares or canceled on Aug 31, 2017 | (1,242,795) | 0 | ||
Held in Treasury | ||||
Schedule of Common Stock and Treasury Stock Outstanding Roll Forward [Line Items] | ||||
Shares, Outstanding | 31,662 | 0 | 125,853 | |
Treasury Stock Reissued | (14,195) | (14,494) | ||
Repurchased | 17,107 | |||
Conversion to DowDuPont shares or canceled on Aug 31, 2017 | (17,467) | (96,804) |
STOCKHOLDERS' EQUITY (Accumulat
STOCKHOLDERS' EQUITY (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (9,885) | $ (8,591) | ||
Accumulated Other Comprehensive Loss | ||||
Beginning balance | 32,701 | 27,229 | ||
Other comprehensive income (loss) before reclassifications | (786) | 911 | $ (1,882) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 529 | 320 | 727 | |
Total other comprehensive income (loss) | (257) | 1,231 | (1,155) | |
Ending balance | 33,621 | 32,701 | 27,229 | |
Total Accum Other Comp Loss | ||||
Accumulated Other Comprehensive Loss | ||||
Beginning balance | (8,591) | (9,822) | (8,667) | |
Balance at Jan 1, 2018 | $ (8,571) | |||
Total other comprehensive income (loss) | (257) | 1,231 | (1,155) | |
Ending balance | (9,885) | (8,591) | (9,822) | |
Unrealized Gains (Losses) on Investments | ||||
Accumulated Other Comprehensive Loss | ||||
Beginning balance | (3) | 43 | 47 | |
Balance at Jan 1, 2018 | 17 | |||
Other comprehensive income (loss) before reclassifications | (74) | 25 | 32 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 7 | (71) | (36) | |
Total other comprehensive income (loss) | (67) | (46) | (4) | |
Ending balance | (51) | (3) | 43 | |
Cumulative Translation Adj | ||||
Accumulated Other Comprehensive Loss | ||||
Beginning balance | (1,481) | (2,381) | (1,737) | |
Balance at Jan 1, 2018 | (1,481) | |||
Other comprehensive income (loss) before reclassifications | (221) | 908 | (644) | |
Amounts reclassified from accumulated other comprehensive income (loss) | (4) | (8) | 0 | |
Total other comprehensive income (loss) | (225) | 900 | (644) | |
Ending balance | (1,813) | (1,481) | (2,381) | |
Pension and Other Postretire Benefits | ||||
Accumulated Other Comprehensive Loss | ||||
Beginning balance | (6,998) | (7,389) | (6,769) | |
Balance at Jan 1, 2018 | (6,998) | |||
Other comprehensive income (loss) before reclassifications | (495) | (23) | (1,354) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 455 | 414 | 734 | |
Total other comprehensive income (loss) | (40) | 391 | (620) | |
Ending balance | (7,965) | (6,998) | (7,389) | |
Derivative Instruments | ||||
Accumulated Other Comprehensive Loss | ||||
Beginning balance | (109) | (95) | (208) | |
Balance at Jan 1, 2018 | (109) | |||
Other comprehensive income (loss) before reclassifications | 4 | 1 | 84 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 71 | (15) | 29 | |
Total other comprehensive income (loss) | 75 | (14) | 113 | |
Ending balance | (56) | $ (109) | $ (95) | |
Accounting Standards Update 2016-01 [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 20 | |||
Retained Earnings [Member] | ||||
Accumulated Other Comprehensive Loss | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (1,057) | |||
Retained Earnings [Member] | Unrealized Gains (Losses) on Investments | ||||
Accumulated Other Comprehensive Loss | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (1) | |||
Retained Earnings [Member] | Cumulative Translation Adj | ||||
Accumulated Other Comprehensive Loss | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (107) | |||
Retained Earnings [Member] | Pension and Other Postretire Benefits | ||||
Accumulated Other Comprehensive Loss | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (927) | |||
Retained Earnings [Member] | Derivative Instruments | ||||
Accumulated Other Comprehensive Loss | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (22) |
STOCKHOLDERS' EQUITY (Tax Benef
STOCKHOLDERS' EQUITY (Tax Benefit (Expense)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Tax | $ (18) | $ (288) | $ 233 |
Unrealized (gains) losses on investments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Tax | 17 | 26 | (2) |
Cumulative translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Tax | (6) | (98) | (171) |
Pension and other postretirement benefit plans | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Tax | (9) | (213) | 438 |
Derivative Instruments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Tax | $ (20) | $ (3) | $ (32) |
STOCKHOLDERS' EQUITY (Reclassif
STOCKHOLDERS' EQUITY (Reclassifications Out of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | $ 529 | $ 320 | $ 727 | ||||||||
Sundry income (expense) - net | 96 | (154) | 517 | ||||||||
Cost of sales | $ 10,098 | $ 10,456 | $ 10,540 | $ 9,980 | $ 10,322 | $ 8,979 | $ 8,703 | $ 8,346 | 41,074 | 36,350 | 30,053 |
Provision (credit) for income taxes on continuing operations | 809 | 1,524 | (218) | ||||||||
Unrealized (gains) losses on investments | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 7 | (71) | (36) | ||||||||
Cumulative translation adjustments | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (4) | (8) | 0 | ||||||||
Pension and other postretirement benefit plans | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 455 | 414 | 734 | ||||||||
Derivative Instruments | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 71 | (15) | 29 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 529 | 320 | 727 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized (gains) losses on investments | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 9 | (110) | (56) | ||||||||
Reclassification from AOCI, Current Period, Tax | (2) | 39 | 20 | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 7 | (71) | (36) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Cumulative translation adjustments | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Sundry income (expense) - net | (4) | (8) | 0 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Pension and other postretirement benefit plans | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 594 | 607 | 913 | ||||||||
Reclassification from AOCI, Current Period, Tax | (139) | (193) | (179) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 455 | 414 | 734 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Derivative Instruments | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Cost of sales | 89 | (13) | 34 | ||||||||
Provision (credit) for income taxes on continuing operations | (18) | (2) | (5) | ||||||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 71 | $ (15) | 29 | ||||||||
Dow Silicones Corporation | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Sundry income (expense) - net | 360 | ||||||||||
Provision (credit) for income taxes on continuing operations | $ 0 |
NONCONTROLLING INTERESTS Nonc_2
NONCONTROLLING INTERESTS Noncontrolling Interests (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Balance at Jan 1 | $ 1,186 | $ 1,242 | |
Balance at Dec 31 | 1,138 | 1,186 | $ 1,242 |
Noncontrolling Interests | |||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Balance at Jan 1 | 1,186 | 1,242 | 809 |
Net income attributable to noncontrolling interests | 102 | 102 | 53 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | 32 | 28 | 33 |
Distributions to noncontrolling interests | (145) | (109) | (123) |
Acquisition of noncontrolling interests | 0 | 0 | 473 |
Deconsolidation of noncontrolling interests | 0 | (119) | 0 |
Cumulative translation adjustments | (39) | 41 | (4) |
Other | 2 | 1 | 1 |
Balance at Dec 31 | 1,138 | 1,186 | 1,242 |
Dividends Paid to a Joint Venture Not Included in Distributions to NCI | $ 27 | $ 20 | 53 |
Ethanol to sugarcane joint venture | |||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Variable Interest Entity Purchase Amount | $ 202 |
PENSION PLANS AND OTHER POSTR_3
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Defined Benefit Pension Plans) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Pension Plans, Number of Plans, Including Discontinued Operations | 45 | ||||
Defined Benefit Pension Plans, Number of Plans | 35 | ||||
Defined Benefit Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Liability, Defined Benefit Plan, Current | $ 47 | $ 50 | $ 47 | ||
Pension contributions | 1,651 | ||||
Pension contributions, including discontinued operations | 1,656 | ||||
Employer contributions | $ 1,100 | 1,656 | $ 1,676 | ||
Expected pension contributions | $ 255 | ||||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||||
Discount rate - benefit obligations | 3.17% | 3.69% | 3.17% | 3.52% | |
Discount rate - net periodic costs | 3.17% | 3.52% | 3.85% | ||
Defined Benefit Plan, Benefit Obligations, Interest Credit Rate for Applicable Benefits | 3.61% | 3.72% | 3.61% | ||
Defined Benefit Plan, Net Periodic Costs, Interest Credit Rate for Applicable Benefits | 3.61% | 3.45% | 4.81% | ||
Rate of compensation increase - benefit obligations | 3.88% | 3.84% | 3.88% | ||
Rate of compensation increase - net periodic costs | 3.88% | 3.90% | 4.04% | ||
Expected return on plan assets - net periodic costs | 7.11% | 7.16% | 7.22% | ||
Defined Benefit Pension Plans | United States | |||||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||||
Discount rate - benefit obligations | 3.66% | 4.39% | 3.66% | ||
Discount rate - net periodic costs | 3.66% | 4.11% | 4.40% | ||
Defined Benefit Plan, Benefit Obligations, Interest Credit Rate for Applicable Benefits | 4.50% | 4.50% | 4.50% | ||
Defined Benefit Plan, Net Periodic Costs, Interest Credit Rate for Applicable Benefits | 4.50% | 4.50% | 4.50% | ||
Rate of compensation increase - benefit obligations | 4.25% | 4.25% | 4.25% | ||
Rate of compensation increase - net periodic costs | 4.25% | 4.25% | 4.50% | ||
Expected return on plan assets - net periodic costs | 7.92% | 7.91% | 7.77% | ||
Defined Benefit Pension Plans | Nonqualified Plan | United States | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Payment For Settlement With Plan Participants | $ 940 | ||||
Payment For Annuity | 230 | ||||
Defined Benefit Pension Plans | Nonqualified Plan | United States | Corporate Segment [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Annuity Option, Income And Payroll Tax Expense (Benefit) | 205 | ||||
Settlement Charge | 687 | ||||
Defined Benefit Pension Plans | Nonqualified Plan | United States | Corporate Segment [Member] | Cost of sales | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Annuity Option, Income And Payroll Tax Expense (Benefit) | 201 | ||||
Defined Benefit Pension Plans | Nonqualified Plan | United States | Corporate Segment [Member] | Selling, General and Administrative Expenses | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Annuity Option, Income And Payroll Tax Expense (Benefit) | 4 | ||||
Discontinued Operations [Member] | Defined Benefit Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Liability, Defined Benefit Plan, Current | $ 1 | $ 270 | $ 1 |
PENSION PLANS AND OTHER POSTR_4
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Other Postretirement Benefits) (Details) - United States - Other Postretirement Benefits | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - benefit obligations | 4.24% | 3.51% | |
Discount rate - net periodic costs | 3.51% | 3.83% | 3.96% |
Health Care Cost Trend Rate Assumed for Next Year - benefit obligations | 6.50% | 6.75% | |
Health Care Cost Trend Rate Assumed for Next Year - net periodic costs | 6.75% | 7.00% | 7.25% |
Rate to which the cost trend rate is assumed to decline (the ultimate health care cost trend rate) - benefit obligations | 5.00% | 5.00% | |
Rate to which the cost trend rate is assumed to decline (the ultimate health care cost trend rate) - net periodic costs | 5.00% | 5.00% | 5.00% |
Year that the Rate Reaches the Ultimate Health Care Cost Trend Rate | 2025 | 2025 | 2025 |
PENSION PLANS AND OTHER POSTR_5
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Change in Projected Benefit Obligations, Plan Assets and Funded Status of All Significant Plans) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||||
Deferred charges and other assets | $ 23,400 | $ 22,500 | $ 23,400 | ||
Defined Benefit Pension Plans | |||||
Defined Benefit Plan, Change in Benefit Obligations [Roll Forward] | |||||
Benefit obligations at beginning of year | 31,851 | 30,280 | |||
Service cost | 520 | 506 | $ 463 | ||
Interest cost | 886 | 883 | 846 | ||
Plan participants' contributions | 19 | 14 | |||
Actuarial changes in assumptions and experience | (1,754) | 1,804 | |||
Benefits paid | (1,476) | (1,440) | |||
Plan amendments | 17 | 14 | |||
Acquisition/divestiture/other | (45) | 50 | |||
Effect of foreign exchange rates | (418) | 932 | |||
Termination Benefits/curtailment cost/settlements | 0 | (1,192) | |||
Benefit obligations at end of year | 31,851 | 29,600 | 31,851 | 30,280 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets at beginning of year | 23,401 | 21,208 | |||
Actual return on plan assets | (742) | 2,500 | |||
Employer contributions | $ 1,100 | 1,656 | 1,676 | ||
Plan participants' contributions | 19 | 14 | |||
Benefits paid | (1,476) | (1,440) | |||
Acquisition/divestitures/other | 0 | (15) | |||
Effect of foreign exchange rates | (314) | 646 | |||
Settlements | 0 | (1,188) | |||
Fair value of plan assets at end of year | 23,401 | 22,544 | 23,401 | $ 21,208 | |
Defined Benefit Plan, Funded (Unfunded) Status of Plan, Including Discontinued Operations | (8,450) | (7,056) | (8,450) | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||||
Deferred charges and other assets | 548 | 491 | 548 | ||
Accrued and other current liabilities | (47) | (50) | (47) | ||
Pension and other postretirement benefits - noncurrent | (8,679) | (7,227) | (8,679) | ||
Net amount recognized | (8,450) | (7,056) | (8,450) | ||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||||
Net loss (gain) | 10,899 | 10,841 | 10,899 | ||
Prior service credit | (265) | (224) | (265) | ||
Pretax balance in AOCL at end of year | $ 10,634 | 10,617 | $ 10,634 | ||
Defined Benefit Plan, Benefit Obligation, Divestiture | $ 37 | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.17% | 3.69% | 3.17% | 3.52% | |
Defined Benefit Pension Plans | Discontinued Operations [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Funded status at end of year | $ (110) | $ (254) | $ (110) | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||||
Accrued and other current liabilities | (1) | (270) | (1) | ||
Pension and other postretirement benefits - noncurrent | $ (271) | $ 0 | $ (271) | ||
Defined Benefit Pension Plans | UNITED STATES | |||||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.66% | 4.39% | 3.66% | ||
Defined Benefit Pension Plans | UNITED STATES | Nonqualified Plan | |||||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||||
Defined Benefit Plan, Benefit Obligation, Change In Control, Payment For Settlement | $ 1,170 | ||||
Defined Benefit Pension Plans | CHINA | |||||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||||
Pension and other postretirement benefits - noncurrent | (69) | $ (69) | |||
Defined Benefit Pension Plans | KOREA, REPUBLIC OF | |||||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||||
Defined Benefit Plan, Benefit Obligation, Divestiture | 25 | ||||
Defined Benefit Plan, Benefit Obligation, Plan Conversion, Payment For Settlement | 22 | ||||
Defined Benefit Plan, Plan Assets, Plan Conversion, Payment For Settlement | 18 | ||||
Other Postretirement Benefits | |||||
Defined Benefit Plan, Change in Benefit Obligations [Roll Forward] | |||||
Benefit obligations at beginning of year | $ 1,567 | 1,835 | |||
Service cost | 12 | 14 | $ 13 | ||
Interest cost | 45 | 54 | 52 | ||
Plan participants' contributions | 0 | 0 | |||
Actuarial changes in assumptions and experience | (13) | (198) | |||
Benefits paid | (123) | (151) | |||
Plan amendments | 0 | 0 | |||
Acquisition/divestiture/other | 0 | 0 | |||
Effect of foreign exchange rates | (10) | 13 | |||
Termination Benefits/curtailment cost/settlements | 0 | 0 | |||
Benefit obligations at end of year | 1,567 | 1,478 | 1,567 | 1,835 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets at beginning of year | 0 | 0 | |||
Actual return on plan assets | 0 | 0 | |||
Employer contributions | 0 | 0 | |||
Plan participants' contributions | 0 | 0 | |||
Benefits paid | 0 | 0 | |||
Acquisition/divestitures/other | 0 | 0 | |||
Effect of foreign exchange rates | 0 | 0 | |||
Settlements | 0 | 0 | |||
Fair value of plan assets at end of year | 0 | 0 | 0 | $ 0 | |
Defined Benefit Plan, Funded (Unfunded) Status of Plan, Including Discontinued Operations | (1,567) | (1,478) | (1,567) | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||||
Deferred charges and other assets | 0 | 0 | 0 | ||
Accrued and other current liabilities | (125) | (131) | (125) | ||
Pension and other postretirement benefits - noncurrent | (1,442) | (1,347) | (1,442) | ||
Net amount recognized | (1,567) | (1,478) | (1,567) | ||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||||
Net loss (gain) | (326) | (315) | (326) | ||
Prior service credit | 0 | 0 | 0 | ||
Pretax balance in AOCL at end of year | (326) | (315) | (326) | ||
Other Postretirement Benefits | Discontinued Operations [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Funded status at end of year | 0 | 0 | 0 | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||||
Accrued and other current liabilities | 0 | 0 | 0 | ||
Pension and other postretirement benefits - noncurrent | $ 0 | $ 0 | $ 0 | ||
Other Postretirement Benefits | UNITED STATES | |||||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.51% | 4.24% | 3.51% | ||
Pension Plans With Plan Assets | UNITED STATES | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Funded status at end of year | $ (5,363) | $ (4,066) | $ (5,363) | ||
Pension Plans With Plan Assets | Non-US | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Funded status at end of year | (2,257) | (2,041) | (2,257) | ||
Other Postretirement Benefit Plans With Plan Assets | UNITED STATES | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Funded status at end of year | 0 | 0 | 0 | ||
Other Postretirement Benefit Plans With Plan Assets | Non-US | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Funded status at end of year | 0 | 0 | 0 | ||
Pension Plan, Excluding Plans with Plan Assets | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Funded status at end of year | (720) | (695) | (720) | ||
Other Postretirement Benefit Plans, Excluding Plans with Plan Assets | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Funded status at end of year | $ (1,567) | $ (1,478) | $ (1,567) |
PENSION PLANS AND OTHER POSTR_6
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Accum Benefit Obligations in Excess) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Retirement Benefits [Abstract] | ||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 28,300 | $ 30,400 |
Accumulated benefit obligations | 25,392 | 27,248 |
Fair value of plan assets | $ 18,902 | $ 19,515 |
PENSION PLANS AND OTHER POSTR_7
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Projected Benefit Obligations in Excess) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Retirement Benefits [Abstract] | ||
Projected benefit obligations | $ 26,599 | $ 28,576 |
Fair value of plan assets | $ 19,051 | $ 19,578 |
PENSION PLANS AND OTHER POSTR_8
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Net Periodic Benefit Cost and Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income for All Significant Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost | $ (123) | $ 676 | $ (35) |
Defined Benefit Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 520 | 506 | 463 |
Interest cost | 886 | 883 | 846 |
Expected return on plan assets | (1,644) | (1,548) | (1,447) |
Amortization of prior service credit | (24) | (25) | (24) |
Amortization of unrecognized (gain) loss | 642 | 638 | 587 |
Curtailment/settlement/other | 0 | 683 | (36) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Including Discontinued Operations | 380 | 1,137 | 389 |
Net periodic benefit cost | 279 | 1,032 | 292 |
Net (gain) loss | 584 | 845 | 1,954 |
Prior service cost | 17 | 14 | 0 |
Amortization of prior service credit | 24 | 25 | 24 |
Amortization of unrecognized gain (loss) | (642) | (638) | (587) |
Settlement loss | 0 | (687) | 0 |
Total recognized in other comprehensive (income) loss | (17) | (441) | 1,391 |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | 363 | 696 | 1,780 |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 12 | 14 | 13 |
Interest cost | 45 | 54 | 52 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service credit | 0 | 0 | (3) |
Amortization of unrecognized (gain) loss | (24) | (6) | (7) |
Curtailment/settlement/other | 0 | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Including Discontinued Operations | 33 | 62 | 55 |
Net periodic benefit cost | 30 | 59 | 52 |
Net (gain) loss | (13) | (199) | 14 |
Prior service cost | 0 | 0 | 0 |
Amortization of prior service credit | 0 | 0 | 3 |
Amortization of unrecognized gain (loss) | 24 | 6 | 7 |
Settlement loss | 0 | 0 | 0 |
Total recognized in other comprehensive (income) loss | 11 | (193) | 24 |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | 44 | (131) | 79 |
Discontinued Operations [Member] | Defined Benefit Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost | 101 | 105 | 97 |
Discontinued Operations [Member] | Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost | $ 3 | $ 3 | $ 3 |
PENSION PLANS AND OTHER POSTR_9
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Estimated Future Benefit Payments) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Defined Benefit Pension Plans | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2019 | $ 1,546 |
2020 | 1,554 |
2021 | 1,580 |
2022 | 1,619 |
2023 | 1,656 |
2024-2028 | 8,596 |
Total | 16,551 |
Other Postretirement Benefits | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2019 | 133 |
2020 | 129 |
2021 | 129 |
2022 | 125 |
2023 | 120 |
2024-2028 | 519 |
Total | $ 1,155 |
PENSION PLANS AND OTHER POST_10
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | $ 22,500 | $ 23,400 |
Defined Benefit Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | $ 491 | $ 548 |
PENSION PLANS AND OTHER POST_11
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Target Allocation for Plan Investment Strategy and Risk Management for Plan Assets) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100.00% |
Defined Benefit Pension Plans | Equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 36.00% |
Defined Benefit Pension Plans | Fixed Income securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 35.00% |
Defined Benefit Pension Plans | Alternative Investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 28.00% |
Defined Benefit Pension Plans | Other Investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 1.00% |
Defined Benefit Plan Liability, Annuity Coverage | |
Defined Benefit Plan Disclosure [Line Items] | |
Concentration Risk, Percentage | 35.00% |
PENSION PLANS AND OTHER POST_12
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Basis of Fair Value Measurements of Pension Plan Assets) (Details) - Defined Benefit Pension Plans - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 22,544 | $ 23,401 | $ 21,208 |
Subtotal | 16,727 | 18,325 | |
Investments measured at NAV | 5,913 | 5,185 | |
Pension Trust Receivables | 29 | 27 | |
Pension Trust Payables | (125) | (136) | |
Quoted Prices in Active Markets for Identical Items (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Subtotal | 8,326 | 9,187 | |
Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Subtotal | 8,360 | 9,082 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 41 | 56 | 106 |
Subtotal | 41 | 56 | |
Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 877 | 772 | |
Cash and Cash Equivalents | Quoted Prices in Active Markets for Identical Items (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 818 | 671 | |
Cash and Cash Equivalents | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 59 | 101 | |
Cash and Cash Equivalents | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7,735 | 9,306 | |
Equity securities | Quoted Prices in Active Markets for Identical Items (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6,748 | 7,949 | |
Equity securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 948 | 1,317 | |
Equity securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 39 | 40 | 33 |
Equity securities | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,493 | 3,755 | |
Equity securities | United States | Quoted Prices in Active Markets for Identical Items (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,251 | 3,416 | |
Equity securities | United States | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 241 | 339 | |
Equity securities | United States | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 0 | |
Equity securities | Non-US | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,242 | 5,551 | |
Equity securities | Non-US | Quoted Prices in Active Markets for Identical Items (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,497 | 4,533 | |
Equity securities | Non-US | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 707 | 978 | |
Equity securities | Non-US | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 38 | 40 | |
Government debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,751 | 4,596 | |
Government debt | Quoted Prices in Active Markets for Identical Items (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 285 | 158 | |
Government debt | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,466 | 4,437 | |
Government debt | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 1 | |
Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,929 | 3,300 | |
Corporate bonds | Quoted Prices in Active Markets for Identical Items (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 411 | 351 | |
Corporate bonds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,518 | 2,935 | |
Corporate bonds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 14 | |
Debt - asset-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 90 | 101 | |
Debt - asset-backed | Quoted Prices in Active Markets for Identical Items (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Debt - asset-backed | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 89 | 100 | |
Debt - asset-backed | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
Total fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7,770 | 7,997 | |
Total fixed income securities | Quoted Prices in Active Markets for Identical Items (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 696 | 509 | |
Total fixed income securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7,073 | 7,472 | |
Total fixed income securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 16 | 17 |
Alternative Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | (35) | (23) | |
Alternative Investments | Quoted Prices in Active Markets for Identical Items (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 17 | 21 | |
Alternative Investments | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | (53) | (44) | |
Alternative Investments | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 0 | 56 |
Hedge Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments measured at NAV | 1,637 | 1,595 | |
Private Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 0 | |
Investments measured at NAV | 2,196 | 1,390 | |
Private Equity Funds | Quoted Prices in Active Markets for Identical Items (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Private Equity Funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Private Equity Funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 0 | |
Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 19 | 21 | |
Investments measured at NAV | 2,080 | 2,200 | |
Real Estate | Quoted Prices in Active Markets for Identical Items (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 19 | 21 | |
Real Estate | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Real Estate | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Derivatives - asset position | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 451 | 261 | |
Derivatives - asset position | Quoted Prices in Active Markets for Identical Items (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 17 | 2 | |
Derivatives - asset position | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 434 | 259 | |
Derivatives - asset position | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Derivatives - liability position | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | (506) | (305) | |
Derivatives - liability position | Quoted Prices in Active Markets for Identical Items (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | (19) | (2) | |
Derivatives - liability position | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | (487) | (303) | |
Derivatives - liability position | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 380 | 273 | |
Other Investments | Quoted Prices in Active Markets for Identical Items (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 47 | 37 | |
Other Investments | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 333 | 236 | |
Other Investments | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 | $ 0 |
PENSION PLANS AND OTHER POST_13
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Fair Value Measurement of Level 3 Pension Plan Assets) (Details) - Defined Benefit Pension Plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 22,544 | $ 23,401 | $ 21,208 |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 41 | 56 | 106 |
Plan Assets Sold | 4 | 4 | |
Plan Assets Still Held | (7) | 5 | |
Purchases, sales and settlements, net | (12) | (59) | |
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 7,735 | 9,306 | |
Equity securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 39 | 40 | 33 |
Plan Assets Sold | 0 | (1) | |
Plan Assets Still Held | (3) | 5 | |
Purchases, sales and settlements, net | 2 | 3 | |
Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 7,770 | 7,997 | |
Fixed Income Securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 1 | 16 | 17 |
Plan Assets Sold | 4 | 0 | |
Plan Assets Still Held | (4) | 1 | |
Purchases, sales and settlements, net | (15) | (2) | |
Alternative Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | (35) | (23) | |
Alternative Investments | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 1 | 0 | 56 |
Plan Assets Sold | (1) | 5 | |
Plan Assets Still Held | 0 | (1) | |
Purchases, sales and settlements, net | 2 | (60) | |
Other Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 380 | 273 | |
Other Investments | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | 0 |
Plan Assets Sold | 1 | 0 | |
Plan Assets Still Held | 0 | 0 | |
Purchases, sales and settlements, net | $ (1) | $ 0 | |
As Filed | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 4,262 | ||
As Filed | Equity securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 33 | ||
As Filed | Fixed Income Securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 17 | ||
As Filed | Alternative Investments | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 4,117 | ||
As Filed | Other Investments | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 95 | ||
Adjustments due to: | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | (4,156) | ||
Adjustments due to: | Equity securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | ||
Adjustments due to: | Fixed Income Securities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | ||
Adjustments due to: | Alternative Investments | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | (4,061) | ||
Adjustments due to: | Other Investments | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | $ (95) |
PENSION PLANS AND OTHER POST_14
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Defined Contribution Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Defined Contribution Plan, Cost | $ 186 | $ 286 | $ 220 |
STOCK-BASED COMPENSATION (Accou
STOCK-BASED COMPENSATION (Accounting for Stock-Based Compensation) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 188 | $ 310 | $ 225 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 42 | $ 115 | $ 83 |
Dividend yield | 2.13% | 3.01% | 4.13% |
Expected volatility | 23.34% | 23.71% | 31.60% |
Risk-free interest rate | 2.83% | 1.28% | 1.12% |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.38 | $ 0.46 | $ 0.46 |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 68 | $ 37 | $ 32 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 15 | $ 14 | $ 12 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 years 2 months 12 days | 7 years 6 months | 7 years 9 months 18 days |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 36 | ||
Employee Stock Option | 2012 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 19 | ||
Employees' Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 0 | $ 38 | $ 7 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 0 | $ 14 | $ 3 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 3 years | 4 years |
STOCK-BASED COMPENSATION (Stock
STOCK-BASED COMPENSATION (Stock Options) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 188 | $ 310 | $ 225 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 42 | $ 115 | $ 83 |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 15.38 | $ 14.44 | $ 10.95 |
Allocated Share-based Compensation Expense | $ 68 | $ 37 | $ 32 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 15 | 14 | 12 |
Proceeds from Stock Options Exercised | 112 | 310 | 312 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 160 | 286 | 153 |
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | 36 | $ 106 | $ 57 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 36 | ||
Employee Service Share-based Compensation, Nonvested, Total Compensation Cost not yet recognized and period for recognition in years | 1 year 10 months 28 days | ||
Maximum term by share based compensation after vesting | 10 years | ||
Employee Stock Option | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
Employee Stock Option | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
2012 Stock Incentive Plan [Member] | Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 28,846 | 26,628 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted-Average Exercise Price | $ 46.70 | $ 38.30 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 6,571 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted-Average Exercise Price | $ 71.43 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 4,074 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 30.65 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 279 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ 61.47 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years 5 months 16 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 327 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 21,813 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 39.99 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 4 years 4 months 24 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 322 |
STOCK-BASED COMPENSATION (Restr
STOCK-BASED COMPENSATION (Restricted Stock Units) (Details) $ / shares in Units, $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2018USD ($)employees$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 188 | $ 310 | $ 225 | |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 42 | $ 115 | $ 83 | |
Deferred Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | shares | 13,346,000 | 9,735,000 | 13,346,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 50.71 | $ 57.41 | $ 50.71 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 2,022,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 71.46 | $ 61.29 | $ 46.25 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | shares | 5,409,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 46.04 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | shares | 224,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | $ 59.40 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 382 | $ 179 | $ 166 | |
Employee Service Share-based Compensation, Tax Benefit Realized from Vesting of Deferred Stock Awards | 86 | 66 | 61 | |
Allocated Share-based Compensation Expense | 144 | 178 | 97 | |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 32 | $ 66 | $ 36 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 126 | |||
Employee Service Share-based Compensation, Nonvested, Total Compensation Cost not yet recognized and period for recognition in years | 1 year 8 months 5 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested But Not Issued | shares | 18,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested But Not Issued, Weighted Average Grant Date Fair Value | $ / shares | $ 35.12 | |||
Deferred Stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||
Deferred Stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |||
Deferred Compensation, Share-based Payments [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost | $ 25 | |||
Share-Based Compensation Arrangement By Share-Based Payment Award, Plan Modification, Incremental Allocated Share-Based Compensation Expense | $ 20 | $ 5 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Number of Employees Affected | employees | 5,000 | |||
Executive Officer [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock Redeemed or Called During Period, Value | $ 45 | |||
Stock Redeemed or Called During Period, Shares | shares | 625,000 | 0 | 0 |
STOCK-BASED COMPENSATION (Perfo
STOCK-BASED COMPENSATION (Performance Stock Units) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 188 | $ 310 | $ 225 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 42 | 115 | 83 |
Performance Deferred Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 0 | 202 | 103 |
Employee Service Share-based Compensation, Tax Benefit Realized from Vesting of Performance Deferred Stock Awards | 0 | 75 | 38 |
Allocated Share-based Compensation Expense | 12 | 106 | 125 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 3 | $ 39 | $ 46 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 616,000 | 861,000 |
Employee Service Share-based Compensation, Cash Flow Effect, Cash Used to Settle Awards | $ 0 | $ 38 | $ 40 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 8 | ||
Employee Service Share-based Compensation, Nonvested, Total Compensation Cost not yet recognized and period for recognition in years | 8 months 1 day | ||
Performance Deferred Stock Awards | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
Performance Deferred Stock Awards | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
January 1, 2013 - December 31, 2015 [Member] [Domain] | Performance Deferred Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Actual number of shares granted above target minimum range | 0.00% | ||
Actual number of shares granted above target maximum range | 200.00% | ||
January 1, 2014 - December 31, 2016 [Member] | Performance Deferred Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Actual number of shares granted above target minimum range | 0.00% | ||
Actual number of shares granted above target maximum range | 200.00% | ||
September 1, 2017 - August 31, 2019 [Member] [Member] | Performance Deferred Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 232,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 71.16 | ||
January 1, 2016 - December 31, 2018 [Member] | Performance Deferred Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,728,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 81.99 | ||
January 1, 2015 - December 31, 2017 [Member] [Member] | Performance Deferred Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 2,283,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 52.68 |
STOCK-BASED COMPENSATION (Res_2
STOCK-BASED COMPENSATION (Restricted Stock) (Details) - Non-Employee Directors' Stock Incentive Plan 2012 [Member] - Restricted Stock [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Deferred Compensation Arrangement with Individual, Shares Issued | 36 | 33 | 32 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 62.82 | $ 62.04 | $ 50.55 |
STOCK-BASED COMPENSATION (Emplo
STOCK-BASED COMPENSATION (Employee Stock Purchase Plan) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 188 | $ 310 | $ 225 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 42 | $ 115 | $ 83 |
Employees' Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 10.00% | ||
Share based compensation arrangement by share based payment award discount from market price offering date company specific | 85.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0 | $ 10.70 | $ 3.40 |
Allocated Share-based Compensation Expense | $ 0 | $ 38 | $ 7 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 0 | 14 | 3 |
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Excluding Stock Options | 0 | 179 | 86 |
Share based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Intrinsic Value Monetary | 0 | 48 | 23 |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Employee Stock Puchase Plan Purchase Rights Exercised | $ 0 | $ 18 | $ 9 |
FINANCIAL INSTRUMENTS (Summary
FINANCIAL INSTRUMENTS (Summary of Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Cash Equivalents, at Carrying Value | $ 566 | $ 2,280 |
Cash Equivalents, Accumulated Gross Unrealized Loss, Before Tax | 0 | 0 |
Cash Equivalents, Accumulated Gross Unrealized Loss, Before Tax | 0 | 0 |
Cash Equivalents, Fair Value | 566 | 2,280 |
Total, Amortized Cost | 1,740 | 1,341 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 29 | 45 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (86) | (14) |
Debt Securities, Available-for-sale | 1,683 | 1,372 |
Cash Equivalents, Marketable Securities and Other Investments, Amortized Cost Basis | 2,422 | 3,789 |
Cash Equivalents, Marketable Securities and Other Investments, Accumulated Gross Unrealized Gain, Before Tax | 30 | 47 |
Cash Equivalents, Marketable Securities and Other Investments, Accumulated Gross Unrealized Loss, Before Tax | (87) | (40) |
Cash Equivalents, Marketable Securities and Other Investments, Fair Value | 2,365 | 3,796 |
Long-term Debt | (19,591) | (20,505) |
Long Term Debt, Accumulated Gross Unrealized Gain, Before Tax | 351 | 6 |
Long Term Debt, Accumulated Gross Unrealized Loss, Before Tax | (972) | (2,104) |
Long-term debt | (20,212) | (22,603) |
Derivative Assets (Liabilities), Accumulated Gross Unrealized Gain, Before Tax | 211 | 152 |
Derivative Assets (Liabilities), Accumulated Gross Unrealized Loss, Before Tax | (285) | (372) |
Derivative Assets (Liabilities), at Fair Value, Net | (74) | (220) |
Long Term Debt, Accumulated Fair Value Adjustment | 18 | 19 |
Derivative, Amount of Hedged Item | 2,290 | 2,390 |
Interest rates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Derivative Assets (Liabilities), Accumulated Gross Unrealized Gain, Before Tax | 0 | 0 |
Derivative Assets (Liabilities), Accumulated Gross Unrealized Loss, Before Tax | (64) | (4) |
Derivative Assets (Liabilities), at Fair Value, Net | (64) | (4) |
Foreign currency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Derivative Assets (Liabilities), Accumulated Gross Unrealized Gain, Before Tax | 120 | 22 |
Derivative Assets (Liabilities), Accumulated Gross Unrealized Loss, Before Tax | (43) | (112) |
Derivative Assets (Liabilities), at Fair Value, Net | 77 | (90) |
Commodities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Derivative Assets (Liabilities), Accumulated Gross Unrealized Gain, Before Tax | 91 | 130 |
Derivative Assets (Liabilities), Accumulated Gross Unrealized Loss, Before Tax | (178) | (256) |
Derivative Assets (Liabilities), at Fair Value, Net | (87) | (126) |
Government debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total, Amortized Cost | 714 | 637 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 9 | 13 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (23) | (11) |
Debt Securities, Available-for-sale | 700 | 639 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total, Amortized Cost | 1,026 | 704 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 20 | 32 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (63) | (3) |
Debt Securities, Available-for-sale | 983 | 733 |
Equity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Equity Securities, Amortized Cost Basis | 16 | 164 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 1 | 2 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | (1) | (26) |
Equity securities | 16 | 140 |
Marketable securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Current | 100 | 4 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, Current, before Tax | 0 | 0 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, Current, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Current | 100 | 4 |
Total other investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Equity Securities, Amortized Cost Basis | 1,756 | 1,505 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 30 | 47 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | (87) | (40) |
Equity securities | $ 1,699 | $ 1,512 |
FINANCIAL INSTRUMENTS (Investme
FINANCIAL INSTRUMENTS (Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash and Cash Equivalents [Line Items] | |||
Proceeds from sales of available-for-sale securities | $ 1,053 | $ 245 | $ 396 |
Gross realized gains | 21 | 5 | 15 |
Gross realized losses | 30 | 0 | $ 1 |
Within one year, Amortized Cost | 124 | ||
One to five years, Amortized Cost | 455 | ||
Six to ten years, Amortized Cost | 717 | ||
After ten years, Amortized Cost | 444 | ||
Total, Amortized Cost | 1,740 | 1,341 | |
Within one year, Fair Value | 124 | ||
One to five years, Fair Value | 444 | ||
Six to ten years, Fair Value | 683 | ||
After ten years, Fair Value | 432 | ||
Total, Fair Value | 1,683 | 1,372 | |
Cash equivalents | |||
Cash and Cash Equivalents [Line Items] | |||
Debt Securities, Held-to-maturity | 410 | 1,771 | |
Money Market Funds, at Carrying Value | $ 156 | $ 509 |
(Temporarily Impaired Securitie
(Temporarily Impaired Securities) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | ||
Temporarily Impaired Securities, Less than 12 Months, Fair Value | $ 1,011 | $ 458 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 251 | 170 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,262 | 628 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months | (75) | (6) |
Available-for-sale Securities, Continuous Unrealized Loss Position, More than 12 Months | (11) | (8) |
Available-for-sale Securities, Continuous Unrealized Position | (86) | (14) |
Cost method investments, aggregate cost | 204 | |
Net unrealized gain recognized in equity securities | 7 | |
Government debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Temporarily Impaired Securities, Less than 12 Months, Fair Value | 287 | 295 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 187 | 151 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 474 | 446 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months | (17) | (4) |
Available-for-sale Securities, Continuous Unrealized Loss Position, More than 12 Months | (6) | (7) |
Available-for-sale Securities, Continuous Unrealized Position | (23) | (11) |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Temporarily Impaired Securities, Less than 12 Months, Fair Value | 724 | 163 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 64 | 19 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 788 | 182 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months | (58) | (2) |
Available-for-sale Securities, Continuous Unrealized Loss Position, More than 12 Months | (5) | (1) |
Available-for-sale Securities, Continuous Unrealized Position | (63) | (3) |
Equity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities | $ 16 | $ 140 |
FINANCIAL INSTRUMENTS (Notional
FINANCIAL INSTRUMENTS (Notional Amounts) (Details) bbl in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)MWhbbl | Dec. 31, 2017USD ($)MWhbbl | |
Derivatives designated as hedging instruments: | Interest rates | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 2,049 | $ 185 |
Derivatives designated as hedging instruments: | Foreign currency | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 4,457 | $ 4,343 |
Derivatives designated as hedging instruments: | Hydrocarbon derivatives | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 39.9 | 71.3 |
Derivatives not designated as hedging instruments: | Interest rates | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 5 | $ 0 |
Derivatives not designated as hedging instruments: | Foreign currency | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 19,285 | $ 12,041 |
Derivatives not designated as hedging instruments: | Hydrocarbon derivatives | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 1.2 | 4.1 |
Derivatives not designated as hedging instruments: | Power derivatives | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | MWh | 73,900 | 0 |
FINANCIAL INSTRUMENTS (Accounti
FINANCIAL INSTRUMENTS (Accounting for Derivative Instruments and Hedging Activities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Accumulated Other Comprehensive Income Loss Cumulative Changes In Net Gain Loss From Foreign Currency Hedges Effect Net Of Tax | $ 113 | $ (76) |
Foreign currency | ||
Derivative [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | 15 | (19) |
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | 13 | |
Commodities | ||
Derivative [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | (87) | (73) |
Price Risk Cash Flow Hedge Unrealized Gain (Loss) to be Reclassified During Next 12 Months | (45) | |
Interest rates | ||
Derivative [Line Items] | ||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | 1 | |
Foreign Currency Denominated Debt [Member] | ||
Derivative [Line Items] | ||
Nonderivative Instruments Notional | 182 | 177 |
Derivatives designated as hedging instruments: | Cash flow hedges: | Interest rates | ||
Derivative [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | $ 23 | $ (3) |
FINANCIAL INSTRUMENTS (Schedule
FINANCIAL INSTRUMENTS (Schedule of Fair Values of Derivative Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Gross | $ 336 | $ 273 |
Counterparty and Cash Collateral Netting | (125) | (121) |
Net Amounts Included in the Consolidated Balance Sheets | 211 | 152 |
Gross | 425 | 512 |
Counterparty and Cash Collateral Netting | (140) | (140) |
Net Amounts Included in the Consolidated Balance Sheets | 285 | 372 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 26 | 19 |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 34 | 0 |
Derivatives designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Gross | 163 | 141 |
Counterparty and Cash Collateral Netting | (58) | (55) |
Net Amounts Included in the Consolidated Balance Sheets | 105 | 86 |
Gross | 307 | 352 |
Counterparty and Cash Collateral Netting | (69) | (73) |
Net Amounts Included in the Consolidated Balance Sheets | 238 | 279 |
Derivatives designated as hedging instruments: | Foreign currency | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross | 98 | 51 |
Counterparty and Cash Collateral Netting | (42) | (46) |
Net Amounts Included in the Consolidated Balance Sheets | 56 | 5 |
Derivatives designated as hedging instruments: | Foreign currency | Accrued and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross | 46 | 109 |
Counterparty and Cash Collateral Netting | (42) | (46) |
Net Amounts Included in the Consolidated Balance Sheets | 4 | 63 |
Derivatives designated as hedging instruments: | Interest rates | Other noncurrent obligations | ||
Derivatives, Fair Value [Line Items] | ||
Gross | 64 | 4 |
Counterparty and Cash Collateral Netting | 0 | 0 |
Net Amounts Included in the Consolidated Balance Sheets | 64 | 4 |
Derivatives designated as hedging instruments: | Commodities | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross | 47 | 20 |
Counterparty and Cash Collateral Netting | (13) | (4) |
Net Amounts Included in the Consolidated Balance Sheets | 34 | 16 |
Derivatives designated as hedging instruments: | Commodities | Deferred charges and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross | 18 | 70 |
Counterparty and Cash Collateral Netting | (3) | (5) |
Net Amounts Included in the Consolidated Balance Sheets | 15 | 65 |
Derivatives designated as hedging instruments: | Commodities | Other noncurrent obligations | ||
Derivatives, Fair Value [Line Items] | ||
Gross | 86 | 143 |
Counterparty and Cash Collateral Netting | (9) | (12) |
Net Amounts Included in the Consolidated Balance Sheets | 77 | 131 |
Derivatives designated as hedging instruments: | Commodities | Accrued and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross | 111 | 96 |
Counterparty and Cash Collateral Netting | (18) | (15) |
Net Amounts Included in the Consolidated Balance Sheets | 93 | 81 |
Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Gross | 173 | 132 |
Counterparty and Cash Collateral Netting | (67) | (66) |
Net Amounts Included in the Consolidated Balance Sheets | 106 | 66 |
Gross | 118 | 160 |
Counterparty and Cash Collateral Netting | (71) | (67) |
Net Amounts Included in the Consolidated Balance Sheets | 47 | 93 |
Derivatives not designated as hedging instruments: | Foreign currency | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross | 128 | 75 |
Counterparty and Cash Collateral Netting | (64) | (58) |
Net Amounts Included in the Consolidated Balance Sheets | 64 | 17 |
Derivatives not designated as hedging instruments: | Foreign currency | Accrued and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross | 103 | 107 |
Counterparty and Cash Collateral Netting | (64) | (58) |
Net Amounts Included in the Consolidated Balance Sheets | 39 | 49 |
Derivatives not designated as hedging instruments: | Commodities | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross | 41 | 50 |
Counterparty and Cash Collateral Netting | (1) | (5) |
Net Amounts Included in the Consolidated Balance Sheets | 40 | 45 |
Derivatives not designated as hedging instruments: | Commodities | Deferred charges and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross | 4 | 7 |
Counterparty and Cash Collateral Netting | (2) | (3) |
Net Amounts Included in the Consolidated Balance Sheets | 2 | 4 |
Derivatives not designated as hedging instruments: | Commodities | Other noncurrent obligations | ||
Derivatives, Fair Value [Line Items] | ||
Gross | 8 | 8 |
Counterparty and Cash Collateral Netting | (3) | (3) |
Net Amounts Included in the Consolidated Balance Sheets | 5 | 5 |
Derivatives not designated as hedging instruments: | Commodities | Accrued and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross | 7 | 45 |
Counterparty and Cash Collateral Netting | (4) | (6) |
Net Amounts Included in the Consolidated Balance Sheets | $ 3 | $ 39 |
FINANCIAL INSTRUMENTS (Effect o
FINANCIAL INSTRUMENTS (Effect of Derivative Instruments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI | $ 112 | $ (69) | $ 97 |
Total derivatives | (1) | (296) | (209) |
Derivatives designated as hedging instruments: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI | 112 | (69) | 97 |
Amount of gain (loss) recognized in income | (90) | 2 | (35) |
Derivatives designated as hedging instruments: | Fair value hedges: | Interest expense and amortization of debt discount 3 | Interest rates | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI | 0 | 0 | 0 |
Amount of gain (loss) recognized in income | 0 | (2) | 0 |
Derivatives designated as hedging instruments: | Cash flow hedges: | Interest expense and amortization of debt discount 3 | Interest rates | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI | 26 | 2 | 2 |
Amount of gain (loss) recognized in income | (3) | 4 | 6 |
Derivatives designated as hedging instruments: | Cash flow hedges: | Cost of sales | Foreign currency | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI | 19 | (30) | 8 |
Amount of gain (loss) recognized in income | (18) | 7 | (5) |
Derivatives designated as hedging instruments: | Cash flow hedges: | Cost of sales | Commodities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI | (46) | 37 | 57 |
Amount of gain (loss) recognized in income | (69) | 10 | (23) |
Derivatives designated as hedging instruments: | Cash flow hedges: | Sundry income (expense) - net | Foreign currency | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI | (3) | (5) | 25 |
Amount of gain (loss) recognized in income | 0 | (17) | (13) |
Derivatives designated as hedging instruments: | Net investment hedges: | Foreign currency | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI | 116 | (73) | 5 |
Amount of gain (loss) recognized in income | 0 | 0 | 0 |
Derivatives not designated as hedging instruments: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI | 0 | 0 | 0 |
Amount of gain (loss) recognized in income | 89 | (298) | (174) |
Derivatives not designated as hedging instruments: | Cost of sales | Commodities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI | 0 | 0 | 0 |
Amount of gain (loss) recognized in income | (12) | (9) | 6 |
Derivatives not designated as hedging instruments: | Sundry income (expense) - net | Foreign currency | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI | 0 | 0 | 0 |
Amount of gain (loss) recognized in income | $ 101 | $ (289) | $ (180) |
(Basis of Fair Value Measuremen
(Basis of Fair Value Measurements on a Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interests in trade accounts receivable conduits | $ 0 | $ 677 |
Debt securities | 1,683 | 1,372 |
Gross | 336 | 273 |
Long-term debt including debt due within one year | 20,212 | 22,603 |
Gross | 425 | 512 |
Government debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 700 | 639 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 983 | 733 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 566 | 2,280 |
Marketable securities | 100 | 4 |
Interests in trade accounts receivable conduits | 0 | 677 |
Equity securities | 16 | 140 |
Total assets at fair value | 2,701 | 4,746 |
Long-term debt including debt due within one year | 20,212 | 22,603 |
Total liabilities at fair value | 20,637 | 23,115 |
Fair Value, Measurements, Recurring | Foreign currency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross | 226 | 126 |
Gross | 149 | 216 |
Fair Value, Measurements, Recurring | Commodities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross | 110 | 147 |
Gross | 212 | 292 |
Fair Value, Measurements, Recurring | Interest rates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross | 64 | 4 |
Fair Value, Measurements, Recurring | Government debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 700 | 639 |
Fair Value, Measurements, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 983 | 733 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Items (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | 0 |
Interests in trade accounts receivable conduits | 0 | 0 |
Equity securities | 16 | 88 |
Total assets at fair value | 33 | 135 |
Long-term debt including debt due within one year | 0 | 0 |
Total liabilities at fair value | 23 | 31 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Items (Level 1) | Foreign currency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross | 0 | 0 |
Gross | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Items (Level 1) | Commodities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross | 17 | 47 |
Gross | 23 | 31 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Items (Level 1) | Interest rates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Items (Level 1) | Government debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Items (Level 1) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 566 | 2,280 |
Marketable securities | 100 | 4 |
Interests in trade accounts receivable conduits | 0 | 0 |
Equity securities | 0 | 52 |
Total assets at fair value | 2,668 | 3,934 |
Long-term debt including debt due within one year | 20,212 | 22,603 |
Total liabilities at fair value | 20,614 | 23,084 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign currency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross | 226 | 126 |
Gross | 149 | 216 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Commodities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross | 93 | 100 |
Gross | 189 | 261 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross | 64 | 4 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Government debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 700 | 639 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 983 | 733 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | 0 |
Interests in trade accounts receivable conduits | 0 | 677 |
Equity securities | 0 | 0 |
Total assets at fair value | 0 | 677 |
Long-term debt including debt due within one year | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Foreign currency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross | 0 | 0 |
Gross | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Commodities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross | 0 | 0 |
Gross | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Interest rates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Government debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Additi
FAIR VALUE MEASUREMENTS (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 0 | $ 0 | |
Noncash settlement transactions | 23 | ||
Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at Jan 1 | 677 | 1,237 | |
Gain (loss) included in earnings | 3 | (8) | |
Purchases | 0 | 8,910 | |
Settlements | (680) | (9,462) | |
Balance at Dec 31 | 0 | 677 | |
Fair Value, Measurements, Nonrecurring | Fair Value Measured at Net Asset Value Per Share | Private Market Securities and Real Estate | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Unfunded commitments on investments | 89 | ||
Fair Value, Measurements, Nonrecurring | Fair Value Measured at Net Asset Value Per Share | Private Market Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Assets at fair value: | 120 | ||
Fair Value, Measurements, Nonrecurring | Fair Value Measured at Net Asset Value Per Share | Real Estate | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Assets at fair value: | $ 29 | ||
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Assets at fair value: | $ 61 | $ 0 |
FAIR VALUE MEASUREMENTS (Basis
FAIR VALUE MEASUREMENTS (Basis of Fair Value Measurements on a Nonrecurring Basis) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Restructuring, Settlement and Impairment Provisions | $ 46 | $ 48 | $ 40 | $ 87 | $ 2,634 | $ 117 | $ (12) | $ 0 | $ 221 | $ 2,739 | $ 579 | ||
DowDuPont Cost Synergy Program [Member] | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Restructuring, Settlement and Impairment Provisions | 184 | 399 | |||||||||||
Performance Materials & Coatings [Member] | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Restructuring, Settlement and Impairment Provisions | 21 | 1,578 | 42 | ||||||||||
Goodwill, Impairment Loss | 1,491 | 1,491 | |||||||||||
Performance Materials & Coatings [Member] | DowDuPont Cost Synergy Program [Member] | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Restructuring, Settlement and Impairment Provisions | 7 | 11 | |||||||||||
Corporate Segment [Member] | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Restructuring, Settlement and Impairment Provisions | 143 | 428 | 444 | ||||||||||
Corporate Segment [Member] | DowDuPont Cost Synergy Program [Member] | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Restructuring, Settlement and Impairment Provisions | 153 | 340 | |||||||||||
Manufacturing Assets, Equity Method Investments, and Other Assets | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Asset Impairment Charges | 246 | ||||||||||||
Manufacturing Assets, Equity Method Investments, and Other Assets | Performance Materials & Coatings [Member] | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Asset Impairment Charges | 83 | ||||||||||||
Manufacturing Assets, Equity Method Investments, and Other Assets | Corporate Segment [Member] | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Asset Impairment Charges | 100 | ||||||||||||
Property, Plant and Equipment | DowDuPont Cost Synergy Program [Member] | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Restructuring, Settlement and Impairment Provisions | 87 | ||||||||||||
Property, Plant and Equipment | Restructuring Charges | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Restructuring, Settlement and Impairment Provisions | 33 | ||||||||||||
Manufacturing Assets | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Asset Impairment Charges | 159 | ||||||||||||
Equity Method Investments | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Asset Impairment Charges | 81 | ||||||||||||
Other Assets | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Asset Impairment Charges | 6 | ||||||||||||
Fair Value, Measurements, Nonrecurring | Restructuring Charges | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Restructuring, Settlement and Impairment Provisions | $ 153 | ||||||||||||
Fair Value, Measurements, Nonrecurring | Restructuring Charges | Corporate Segment [Member] | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Asset Impairment Charges | $ 143 | ||||||||||||
Fair Value, Measurements, Nonrecurring | Changes Measurement [Member] | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Total assets at fair value | (67) | (955) | (296) | (67) | (955) | (296) | |||||||
Goodwill, Fair Value Disclosure | (1,491) | (1,491) | |||||||||||
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 1 [Member] | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Total assets at fair value | 0 | 0 | 46 | 0 | 0 | 46 | |||||||
Goodwill, Fair Value Disclosure | 0 | 0 | |||||||||||
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 1 [Member] | Investments [Member] | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Total assets at fair value | 46 | 46 | |||||||||||
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 [Member] | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Total assets at fair value | 61 | 0 | 61 | 0 | |||||||||
Goodwill, Fair Value Disclosure | 0 | 0 | |||||||||||
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 [Member] | Manufacturing Assets, Equity Method Investments, and Other Assets | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Total assets at fair value | 0 | 61 | 0 | 61 | |||||||||
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 [Member] | Property, Plant and Equipment | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Total assets at fair value | $ 0 | $ 0 | |||||||||||
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 [Member] | Manufacturing Facility | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Total assets at fair value | $ 0 | $ 0 | $ 0 | $ 0 |
VARIABLE INTEREST ENTITIES (Sch
VARIABLE INTEREST ENTITIES (Schedule of Consolidated Variable Interest Entities, Carrying Amounts of Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents at end of year | $ 2,724 | $ 6,189 | $ 6,607 |
Other current assets | 39,370 | 27,891 | |
Net property | 21,418 | 21,584 | $ 20,161 |
Other noncurrent assets | 735 | 814 | |
Total Assets | 85,852 | ||
Current liabilities (less than $1 million at 12/31/2017) | 14,580 | ||
Long-term debt | 19,253 | 19,757 | |
Other noncurrent obligations | 4,709 | 5,193 | |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents at end of year | 71 | 86 | |
Other current assets | 101 | 120 | |
Net property | 683 | 855 | |
Other noncurrent assets | 14 | 13 | |
Total Assets | 869 | 1,074 | |
Current liabilities (less than $1 million at 12/31/2017) | 307 | 268 | |
Long-term debt | 75 | 249 | |
Other noncurrent obligations | 14 | 21 | |
Total liabilities | 396 | 538 | |
Ethanol to sugarcane joint venture | |||
Variable Interest Entity [Line Items] | |||
Redeemable Noncontrolling Interest, Liability, Redemption Value | 202 | ||
Variable Interest Entities Used to Monetize Accounts Receivable | |||
Variable Interest Entity [Line Items] | |||
Other current assets | 0 | 671 | |
Current liabilities (less than $1 million at 12/31/2017) | 0 | 1 | |
Current Assets Restricted To Consolidated Variable Interest Entities | 0 | 0 | |
Current liabilities, nonrecourse | $ 0 | $ 0 | |
Parent Company | Ethanol to sugarcane joint venture | |||
Variable Interest Entity [Line Items] | |||
Noncontrolling interest, ownership percentage by parent | 100.00% |
VARIABLE INTEREST ENTITIES (Non
VARIABLE INTEREST ENTITIES (Nonconsolidated Variable Interest Entity) (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 04, 2017 | Jul. 31, 2015 | |
Variable Interest Entity [Line Items] | |||||
Investment in nonconsolidated affiliates | $ 2,974 | $ 3,320 | $ 3,107 | ||
Silicon Inputs Joint Ventures [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Investment in nonconsolidated affiliates | 100 | 103 | |||
AFSI | |||||
Variable Interest Entity [Line Items] | |||||
Investment in nonconsolidated affiliates | 48 | 51 | |||
AFSI | |||||
Variable Interest Entity [Line Items] | |||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 56 | 55 | |||
Other Receivables | 8 | 4 | |||
AgroFresh | |||||
Variable Interest Entity [Line Items] | |||||
Investment in nonconsolidated affiliates | $ 210 | ||||
AgroFresh | Variable Interest Entity, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Equity Method Investment, Shares Purchased | 5,070,358 | ||||
Noncontrolling interest, ownership percentage by parent | 10.00% | ||||
Crude Acrylic Acid Joint Venture | Variable Interest Entity, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Investment in nonconsolidated affiliates | 168 | ||||
Crude Acrylic Acid Joint Venture | Cash and Cash Equivalents | Variable Interest Entity, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 47 | ||||
Crude Acrylic Acid Joint Venture | Other Assets | Variable Interest Entity, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 67 | ||||
Crude Acrylic Acid Joint Venture | Goodwill | Variable Interest Entity, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 48 | ||||
Crude Acrylic Acid Joint Venture | Liability | Variable Interest Entity, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Liabilities | 6 | ||||
Corporate Segment [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Investment in nonconsolidated affiliates | 209 | $ 93 | $ 120 | ||
Corporate Segment [Member] | Restructuring Charges | Fair Value, Measurements, Nonrecurring | |||||
Variable Interest Entity [Line Items] | |||||
Asset Impairment Charges | $ 143 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Receivable related to tax sharing agreement | $ 3,389 | $ 4,208 |
The Dow Chemical Company [Domain] | ||
Related Party Transaction [Line Items] | ||
Receivable related to tax sharing agreement | 3,389 | 4,208 |
The Dow Chemical Company [Domain] | DowDuPont | ||
Related Party Transaction [Line Items] | ||
Dividends declared and paid | 3,711 | 1,056 |
Receivable related to tax sharing agreement | $ 89 | $ 354 |
RELATED PARTY TRANSACTIONS - Sc
RELATED PARTY TRANSACTIONS - Schedules of Related Party Transactions (Details) - The Dow Chemical Company [Domain] - DuPont and its Affiliates - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Accounts and notes receivable - Other | $ 89 | $ 12 |
Accounts payable - Other | 19 | $ 11 |
Net sales | 55 | |
Cost of sales | $ 42 |
SEGMENTS AND GEOGRAPHIC REGIO_3
SEGMENTS AND GEOGRAPHIC REGIONS Other (Details) | Dec. 31, 2018employeesmanufacturingsitescountries | Dec. 31, 2017 | Dec. 31, 2016 |
Number of Manufacturing Sites | manufacturingsites | 113 | ||
Number of Countries With Manufacturing Sites | countries | 31 | ||
Entity Number of Employees | employees | 37,600 | ||
The Kuwait Styrene Company KSC | |||
Ownership percentage | 42.50% | 42.50% | 42.50% |
SCG-Dow Group | |||
Ownership percentage | 50.00% | ||
EQUATE Petrochemical Company K.S.C. | |||
Ownership percentage | 42.50% | 42.50% | 42.50% |
The Kuwait Olefins Company K.S.C. | |||
Ownership percentage | 42.50% | 42.50% | 42.50% |
Map Ta Phut Olefins Company | |||
Ownership percentage | 32.77% | 32.77% | 32.77% |
Equity Method Investment, Ownership Percentage, Direct | 20.27% | ||
Equity Method Investment, Ownership Percentage, Indirect | 12.50% | ||
Sadara Chemical Company | |||
Ownership percentage | 35.00% | 35.00% | 35.00% |
SEGMENTS AND GEOGRAPHIC REGIO_4
SEGMENTS AND GEOGRAPHIC REGIONS Geographic Region Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 11,944 | $ 12,634 | $ 12,789 | $ 12,237 | $ 12,061 | $ 10,991 | $ 10,554 | $ 10,124 | $ 49,604 | $ 43,730 | $ 36,264 |
Net property | 21,418 | 21,584 | 21,418 | 21,584 | 20,161 | ||||||
UNITED STATES | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 16,613 | 15,316 | 12,911 | ||||||||
Net property | 14,750 | 14,771 | 14,750 | 14,771 | 12,906 | ||||||
Europe, Middle East, Africa and India [Domain] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 17,406 | 15,226 | 12,238 | ||||||||
Net property | 2,657 | 2,547 | 2,657 | 2,547 | 2,263 | ||||||
Rest of World [Domain] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 15,585 | 13,188 | 11,115 | ||||||||
Net property | $ 4,011 | $ 4,266 | $ 4,011 | $ 4,266 | $ 4,992 |
SEGMENTS AND GEOGRAPHIC REGIO_5
SEGMENTS AND GEOGRAPHIC REGIONS Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Disposal Group, Including Discontinued Operation, Assets | $ 19,900 | $ 19,279 | $ 19,900 | $ 19,279 | $ 19,153 | ||||||
Net sales | 11,944 | $ 12,634 | $ 12,789 | $ 12,237 | 12,061 | $ 10,991 | $ 10,554 | $ 10,124 | 49,604 | 43,730 | 36,264 |
Business Acquisition, Pro Forma Revenue | 49,852 | 44,772 | |||||||||
Restructuring, goodwill impairment and asset related charges - net | 46 | $ 48 | $ 40 | $ 87 | 2,634 | $ 117 | $ (12) | $ 0 | 221 | 2,739 | 579 |
Asbestos-related charge | 0 | 0 | 1,113 | ||||||||
Equity in earnings of nonconsolidated affiliates | 555 | 394 | 187 | ||||||||
Pro Forma Operating EBIT | 6,236 | 5,577 | |||||||||
Operating EBIT | 4,504 | ||||||||||
Depreciation and amortization | 2,909 | 2,546 | 2,225 | ||||||||
Total Assets, Excluding Discontinued Operations | 63,799 | 66,573 | 63,799 | 66,573 | 60,358 | ||||||
Investment in nonconsolidated affiliates | 3,320 | 3,107 | 3,320 | 3,107 | 2,974 | ||||||
Capital expenditures | 2,091 | 2,807 | 3,489 | ||||||||
Performance Materials & Coatings [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 9,677 | 8,892 | 6,476 | ||||||||
Business Acquisition, Pro Forma Revenue | 9,865 | 8,892 | |||||||||
Restructuring, goodwill impairment and asset related charges - net | 21 | 1,578 | 42 | ||||||||
Asbestos-related charge | 0 | ||||||||||
Equity in earnings of nonconsolidated affiliates | 4 | 40 | 97 | ||||||||
Pro Forma Operating EBIT | 1,246 | 817 | |||||||||
Operating EBIT | 260 | ||||||||||
Depreciation and amortization | 888 | 885 | 678 | ||||||||
Total Assets, Excluding Discontinued Operations | 16,050 | 17,483 | 16,050 | 17,483 | 17,731 | ||||||
Investment in nonconsolidated affiliates | 99 | 103 | 99 | 103 | 280 | ||||||
Capital expenditures | 427 | 463 | 435 | ||||||||
Industrial Intermediates & Infrastructure [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 15,447 | 12,951 | 11,100 | ||||||||
Business Acquisition, Pro Forma Revenue | 15,465 | 12,951 | |||||||||
Restructuring, goodwill impairment and asset related charges - net | 11 | 17 | 83 | ||||||||
Asbestos-related charge | 0 | ||||||||||
Equity in earnings of nonconsolidated affiliates | 284 | 172 | (18) | ||||||||
Pro Forma Operating EBIT | 1,767 | 1,470 | |||||||||
Operating EBIT | 743 | ||||||||||
Depreciation and amortization | 607 | 572 | 620 | ||||||||
Total Assets, Excluding Discontinued Operations | 14,092 | 14,115 | 14,092 | 14,115 | 13,739 | ||||||
Investment in nonconsolidated affiliates | 1,850 | 1,700 | 1,850 | 1,700 | 1,632 | ||||||
Capital expenditures | 433 | 310 | 262 | ||||||||
Packaging & Specialty Plastics [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 24,195 | 21,504 | 18,404 | ||||||||
Business Acquisition, Pro Forma Revenue | 24,237 | 22,546 | |||||||||
Restructuring, goodwill impairment and asset related charges - net | 46 | 716 | 10 | ||||||||
Asbestos-related charge | 0 | ||||||||||
Equity in earnings of nonconsolidated affiliates | 287 | 190 | 137 | ||||||||
Pro Forma Operating EBIT | 3,593 | 3,712 | |||||||||
Operating EBIT | 3,855 | ||||||||||
Depreciation and amortization | 1,385 | 1,055 | 903 | ||||||||
Total Assets, Excluding Discontinued Operations | 30,279 | 30,633 | 30,279 | 30,633 | 23,051 | ||||||
Investment in nonconsolidated affiliates | 1,278 | 1,184 | 1,278 | 1,184 | 853 | ||||||
Capital expenditures | 1,231 | 2,034 | 2,792 | ||||||||
Corporate Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 285 | 383 | 284 | ||||||||
Business Acquisition, Pro Forma Revenue | 285 | 383 | |||||||||
Restructuring, goodwill impairment and asset related charges - net | 143 | 428 | 444 | ||||||||
Asbestos-related charge | 1,113 | ||||||||||
Equity in earnings of nonconsolidated affiliates | (20) | (8) | (29) | ||||||||
Pro Forma Operating EBIT | (370) | (422) | |||||||||
Operating EBIT | (354) | ||||||||||
Depreciation and amortization | 29 | 34 | 24 | ||||||||
Total Assets, Excluding Discontinued Operations | 3,378 | 4,342 | 3,378 | 4,342 | 5,837 | ||||||
Investment in nonconsolidated affiliates | $ 93 | $ 120 | 93 | 120 | 209 | ||||||
Capital expenditures | $ 0 | $ 0 | $ 0 |
SEGMENTS AND GEOGRAPHIC REGIO_6
SEGMENTS AND GEOGRAPHIC REGIONS EBIT Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting [Abstract] | |||||||||||
Income from continuing operations, net of tax | $ 491 | $ 714 | $ 810 | $ 925 | $ (3,218) | $ 505 | $ 812 | $ 614 | $ 2,940 | $ (1,287) | $ 1,478 |
Provision (credit) for income taxes on continuing operations | 809 | 1,524 | (218) | ||||||||
Income from continuing operations before income taxes | 3,749 | 237 | 1,260 | ||||||||
Interest income | 82 | 66 | 75 | ||||||||
Interest expense and amortization of debt discount | 1,063 | 914 | 827 | ||||||||
Pro Forma Adjustments | 180 | 1,120 | |||||||||
Other Nonrecurring (Income) Expense | (1,326) | (3,372) | (2,492) | ||||||||
Pro Forma Operating EBIT | $ 6,236 | $ 5,577 | |||||||||
Operating EBIT | $ 4,504 |
SEGMENTS AND GEOGRAPHIC REGIO_7
SEGMENTS AND GEOGRAPHIC REGIONS Significant Items (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2016 | Aug. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain (Loss), Net | $ (20) | $ 0 | $ 1,617 | |||
Environmental Remediation Expense | (176) | (163) | (503) | |||
Gain (loss) related to litigation settlement | (137) | (1,219) | ||||
Asbestos-related charge | 0 | 0 | (1,113) | |||
Gain and post-close adjustments related to Dow Silicones ownership restructure | 1,389 | |||||
Gain (loss) on divestiture | 0 | 0 | (14) | |||
Transaction Costs and Productivity Actions | (58) | (195) | ||||
Gain (Loss) on Contract Termination | (117) | |||||
Integration and separation costs | (1,074) | (716) | (349) | |||
Restructuring, goodwill impairment and asset related charges - net | (198) | (2,742) | ||||
Loss on early extinguishment of debt | (54) | 0 | 0 | |||
Other Nonrecurring (Income) Expense | (1,326) | (3,372) | (2,492) | |||
Amortization of Merger-related inventory step-up | 2 | 120 | 0 | |||
Performance Materials & Coatings [Member] | ||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain (Loss), Net | (20) | |||||
Environmental Remediation Expense | 0 | |||||
Gain (loss) related to litigation settlement | 0 | 16 | ||||
Asbestos-related charge | 0 | |||||
Gain and post-close adjustments related to Dow Silicones ownership restructure | 1,389 | |||||
Gain (loss) on divestiture | 0 | |||||
Transaction Costs and Productivity Actions | 0 | 0 | ||||
Gain (Loss) on Contract Termination | 0 | |||||
Integration and separation costs | 0 | 0 | 0 | |||
Restructuring, goodwill impairment and asset related charges - net | (21) | (1,578) | ||||
Loss on early extinguishment of debt | 0 | |||||
Other Nonrecurring (Income) Expense | (41) | (1,578) | 1,363 | |||
Industrial Intermediates & Infrastructure [Member] | ||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain (Loss), Net | 0 | |||||
Gain (loss) related to litigation settlement | 0 | (1,235) | ||||
Asbestos-related charge | 0 | |||||
Gain and post-close adjustments related to Dow Silicones ownership restructure | 0 | |||||
Transaction Costs and Productivity Actions | 0 | 0 | ||||
Gain (Loss) on Contract Termination | 0 | |||||
Integration and separation costs | 0 | 0 | 0 | |||
Restructuring, goodwill impairment and asset related charges - net | (11) | (17) | ||||
Loss on early extinguishment of debt | 0 | |||||
Other Nonrecurring (Income) Expense | 9 | (17) | (1,319) | |||
Packaging & Specialty Plastics [Member] | ||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain (Loss), Net | 0 | |||||
Gain (loss) related to litigation settlement | (137) | 0 | ||||
Asbestos-related charge | 0 | |||||
Gain and post-close adjustments related to Dow Silicones ownership restructure | 0 | |||||
Gain (loss) on divestiture | 0 | |||||
Transaction Costs and Productivity Actions | 0 | 0 | ||||
Gain (Loss) on Contract Termination | (117) | |||||
Integration and separation costs | 0 | 0 | 0 | |||
Restructuring, goodwill impairment and asset related charges - net | (46) | (716) | ||||
Loss on early extinguishment of debt | 0 | |||||
Other Nonrecurring (Income) Expense | (46) | (579) | (129) | |||
Corporate Segment [Member] | ||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain (Loss), Net | 0 | |||||
Gain (loss) related to litigation settlement | 0 | 0 | ||||
Asbestos-related charge | (1,113) | |||||
Gain and post-close adjustments related to Dow Silicones ownership restructure | 0 | |||||
Gain (loss) on divestiture | 0 | |||||
Transaction Costs and Productivity Actions | (58) | (195) | ||||
Gain (Loss) on Contract Termination | 0 | |||||
Integration and separation costs | (1,074) | (716) | (349) | |||
Restructuring, goodwill impairment and asset related charges - net | (120) | (431) | ||||
Loss on early extinguishment of debt | (54) | |||||
Other Nonrecurring (Income) Expense | (1,248) | (1,198) | (2,407) | |||
Other Environmental Matters [Domain] | ||||||
Environmental Remediation Expense | $ (295) | (295) | ||||
Other Environmental Matters [Domain] | Industrial Intermediates & Infrastructure [Member] | ||||||
Environmental Remediation Expense | (1) | |||||
Other Environmental Matters [Domain] | Packaging & Specialty Plastics [Member] | ||||||
Environmental Remediation Expense | (2) | |||||
Other Environmental Matters [Domain] | Corporate Segment [Member] | ||||||
Environmental Remediation Expense | (292) | |||||
Dow Silicones Corporation | ||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain (Loss), Net | (20) | 0 | 1,617 | |||
Loss on early extinguishment of debt | 15 | |||||
Amortization of Merger-related inventory step-up | 213 | |||||
Dow Silicones Corporation | Performance Materials & Coatings [Member] | ||||||
Gain and post-close adjustments related to Dow Silicones ownership restructure | $ 1,617 | (20) | ||||
Amortization of Merger-related inventory step-up | $ 213 | |||||
Urethane Matters Class Action Lawsuit And Opt-Out Cases | ||||||
Gain (loss) related to litigation settlement | 0 | 0 | (1,235) | |||
Breast Implant and Other Products Liability Claims | ||||||
Gain (loss) related to litigation settlement | 16 | |||||
Union Carbide Corporation | Asbestos Related Matters, Defense and Processing Costs for Pending and Future Claims [Member] | ||||||
Asbestos-related charge | (1,009) | |||||
Union Carbide Corporation | Asbestos Related Matters, Pending and Future Claims | ||||||
Asbestos-related charge | (104) | |||||
MEGlobal | ||||||
Gain (loss) on divestiture | 20 | |||||
MEGlobal | Industrial Intermediates & Infrastructure [Member] | ||||||
Gain (loss) on divestiture | $ 20 | |||||
AgroFresh | ||||||
Gain (loss) on divestiture | 20 | |||||
Chlorine Value Chain | ||||||
Gain (loss) on divestiture | 7 | 6 | ||||
Loss Contingency, Loss in Period | 33 | |||||
Chlorine Value Chain | Performance Materials & Coatings [Member] | ||||||
Gain (loss) on divestiture | 0 | |||||
Chlorine Value Chain | Industrial Intermediates & Infrastructure [Member] | ||||||
Gain (loss) on divestiture | 0 | |||||
Chlorine Value Chain | Packaging & Specialty Plastics [Member] | ||||||
Gain (loss) on divestiture | 0 | |||||
Chlorine Value Chain | Corporate Segment [Member] | ||||||
Gain (loss) on divestiture | $ 7 | |||||
AFSI | ||||||
Equity Method Investment, Other than Temporary Impairment | 143 | |||||
Other Nonoperating Income (Expense) [Member] | Performance Materials & Coatings [Member] | ||||||
Gain (loss) on divestiture | 0 | |||||
Other Nonoperating Income (Expense) [Member] | Industrial Intermediates & Infrastructure [Member] | ||||||
Gain (loss) on divestiture | 0 | |||||
Other Nonoperating Income (Expense) [Member] | Packaging & Specialty Plastics [Member] | ||||||
Gain (loss) on divestiture | 0 | |||||
Other Nonoperating Income (Expense) [Member] | Corporate Segment [Member] | ||||||
Gain (loss) on divestiture | $ (14) |
SELECTED QUARTERLY FINANCIAL _3
SELECTED QUARTERLY FINANCIAL DATA (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net sales | $ 11,944 | $ 12,634 | $ 12,789 | $ 12,237 | $ 12,061 | $ 10,991 | $ 10,554 | $ 10,124 | $ 49,604 | $ 43,730 | $ 36,264 |
Cost of sales | 10,098 | 10,456 | 10,540 | 9,980 | 10,322 | 8,979 | 8,703 | 8,346 | 41,074 | 36,350 | 30,053 |
Gross margin | 1,846 | 2,178 | 2,249 | 2,257 | 1,739 | 2,012 | 1,851 | 1,778 | 8,530 | 7,380 | |
Restructuring, goodwill impairment and asset related charges - net | 46 | 48 | 40 | 87 | 2,634 | 117 | (12) | 0 | 221 | 2,739 | 579 |
Integration and separation costs | 380 | 313 | 262 | 224 | 263 | 290 | 136 | 109 | 1,179 | 798 | 349 |
Income from continuing operations, net of tax | 491 | 714 | 810 | 925 | (3,218) | 505 | 812 | 614 | 2,940 | (1,287) | 1,478 |
Income from discontinued operations, net of tax | 432 | 335 | 554 | 514 | 737 | 296 | 548 | 301 | 1,835 | 1,882 | 2,926 |
Net income (loss) | 923 | 1,049 | 1,364 | 1,439 | (2,481) | 801 | 1,360 | 915 | 4,775 | 595 | 4,404 |
Net income (loss) attributable to Dow Inc. and The Dow Chemical Company | $ 891 | $ 1,013 | $ 1,333 | $ 1,404 | $ (2,524) | $ 779 | $ 1,322 | $ 888 | 4,641 | 465 | 3,978 |
Net income attributable to The Dow Chemical Company | $ 4,641 | $ 465 | $ 4,318 | ||||||||
Earnings (loss) per common share from continuing operations - basic | $ 0.63 | $ 0.91 | $ 1.05 | $ 1.21 | $ (4.36) | $ 0.64 | $ 1.04 | $ 0.81 | $ 3.80 | $ (1.88) | $ 1.57 |
Earnings (loss) per common share from continuing operations - diluted | $ 0.63 | $ 0.91 | $ 1.05 | $ 1.21 | $ (4.36) | $ 0.64 | $ 1.03 | $ 0.80 | $ 3.80 | $ (1.88) | $ 1.55 |
VALUATION AND QUALIFYING ACCO_2
VALUATION AND QUALIFYING ACCOUNTS (Schedule of Valuation and Qualifying Accounts) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | AgroFresh | AgroFresh | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Impairment charge | $ 143 | ||
Accounts Receivable - Allowance for Doubtful Receivables | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 59 | $ 51 | 48 |
Additions charged to expenses | 10 | 23 | 13 |
Additions charged to other accounts | 4 | 2 | 0 |
Deductions from reserves | (31) | (17) | (10) |
Balance at end of year | 42 | 59 | 51 |
Inventory - Obsolescence Reserve | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 18 | 34 | 14 |
Additions charged to expenses | 7 | 5 | 26 |
Deductions from reserves | (2) | (21) | (6) |
Balance at end of year | 23 | 18 | 34 |
Reserves for Other Investments and Noncurrent Receivables | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 430 | 350 | 487 |
Additions charged to expenses | 44 | 83 | 152 |
Deductions from reserves | (14) | (3) | (289) |
Balance at end of year | 460 | 430 | 350 |
Reserves for Other Investments and Noncurrent Receivables | Dow Silicones Corporation | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Deductions from reserves | (237) | ||
Deferred Tax Assets - Valuation Allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 1,255 | 936 | 868 |
Additions charged to expenses | 152 | 369 | 140 |
Deductions from reserves | (182) | (50) | (72) |
Balance at end of year | $ 1,225 | $ 1,255 | $ 936 |