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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Dow Inc | NYSE:DOW | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.65 | 1.15% | 57.09 | 58.21 | 57.15 | 57.65 | 5,573,594 | 01:00:00 |
Commission
File Number
|
Exact Name of Registrant as Specified in its Charter,
Principal Office Address and Telephone Number
|
State of Incorporation or
Organization
|
I.R.S. Employer
Identification No.
|
||||||||
001-38646 | Dow Inc. | Delaware | 30-1128146 | ||||||||
2211 H.H. Dow Way, Midland, MI 48674
|
|||||||||||
(989) 636-1000
|
|||||||||||
001-03433 | The Dow Chemical Company | Delaware | 38-1285128 | ||||||||
2211 H.H. Dow Way, Midland, MI 48674
|
|||||||||||
(989) 636-1000
|
Registrant | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||
Dow Inc. | Common Stock, par value $0.01 per share | DOW | New York Stock Exchange | ||||||||
The Dow Chemical Company | 0.500% Notes due March 15, 2027 | DOW/27 | New York Stock Exchange | ||||||||
The Dow Chemical Company | 1.125% Notes due March 15, 2032 | DOW/32 | New York Stock Exchange | ||||||||
The Dow Chemical Company | 1.875% Notes due March 15, 2040 | DOW/40 | New York Stock Exchange | ||||||||
The Dow Chemical Company | 4.625% Notes due October 1, 2044 | DOW/44 | New York Stock Exchange |
Dow Inc. | ☑ | Yes | ☐ | No | The Dow Chemical Company | ☑ | Yes | ☐ | No |
Dow Inc. | ☑ | Yes | ☐ | No | The Dow Chemical Company | ☑ | Yes | ☐ | No |
Dow Inc. |
Large accelerated filer
|
☑ |
Accelerated
filer |
☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ | ||||||||||||||||||||||
The Dow Chemical Company | Large accelerated filer | ☐ |
Accelerated
filer |
☐ |
Non-accelerated filer
|
☑ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
Dow Inc.
|
☐ | The Dow Chemical Company | ☐ |
Dow Inc. | ☐ | Yes | ☑ | No | The Dow Chemical Company | ☐ | Yes | ☑ | No |
PAGE | ||||||||
Item 1. | ||||||||
Dow Inc. and Subsidiaries: | ||||||||
The Dow Chemical Company and Subsidiaries: | ||||||||
Dow Inc. and Subsidiaries and The Dow Chemical Company and Subsidiaries: | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Dow Inc. and Subsidiaries
The Dow Chemical Company and Subsidiaries |
PART I – FINANCIAL INFORMATION |
ITEM 1. FINANCIAL STATEMENTS |
Three Months Ended | Nine Months Ended | |||||||||||||
In millions, except per share amounts (Unaudited) |
Sep 30,
2021 |
Sep 30,
2020 |
Sep 30,
2021 |
Sep 30,
2020 |
||||||||||
Net sales | $ | 14,837 | $ | 9,712 | $ | 40,604 | $ | 27,836 | ||||||
Cost of sales | 11,611 | 8,371 | 32,413 | 24,211 | ||||||||||
Research and development expenses | 210 | 193 | 632 | 554 | ||||||||||
Selling, general and administrative expenses | 403 | 372 | 1,209 | 1,063 | ||||||||||
Amortization of intangibles | 100 | 100 | 301 | 300 | ||||||||||
Restructuring and asset related charges - net | — | 617 | 22 | 719 | ||||||||||
Integration and separation costs | — | 63 | — | 174 | ||||||||||
Equity in earnings (losses) of nonconsolidated affiliates | 249 | 60 | 751 | (124) | ||||||||||
Sundry income (expense) - net | (350) | 182 | (225) | 154 | ||||||||||
Interest income | 14 | 6 | 35 | 27 | ||||||||||
Interest expense and amortization of debt discount | 178 | 202 | 561 | 617 | ||||||||||
Income before income taxes | 2,248 | 42 | 6,027 | 255 | ||||||||||
Provision for income taxes | 542 | 43 | 1,383 | 215 | ||||||||||
Net income (loss) | 1,706 | (1) | 4,644 | 40 | ||||||||||
Net income attributable to noncontrolling interests | 23 | 24 | 69 | 51 | ||||||||||
Net income (loss) available for Dow Inc. common stockholders | $ | 1,683 | $ | (25) | $ | 4,575 | $ | (11) | ||||||
Per common share data: | ||||||||||||||
Earnings (loss) per common share - basic | $ | 2.25 | $ | (0.04) | $ | 6.11 | $ | (0.02) | ||||||
Earnings (loss) per common share - diluted | $ | 2.23 | $ | (0.04) | $ | 6.06 | $ | (0.02) | ||||||
Weighted-average common shares outstanding - basic | 744.5 | 740.5 | 745.4 | 740.0 | ||||||||||
Weighted-average common shares outstanding - diluted | 750.0 | 740.5 | 750.9 | 740.0 | ||||||||||
Depreciation | $ | 517 | $ | 526 | $ | 1,550 | $ | 1,558 | ||||||
Capital expenditures | $ | 413 | $ | 287 | $ | 1,035 | $ | 955 |
Three Months Ended | Nine Months Ended | |||||||||||||
In millions (Unaudited) |
Sep 30,
2021 |
Sep 30,
2020 |
Sep 30,
2021 |
Sep 30,
2020 |
||||||||||
Net income (loss) | $ | 1,706 | $ | (1) | $ | 4,644 | $ | 40 | ||||||
Other comprehensive income (loss), net of tax | ||||||||||||||
Unrealized gains (losses) on investments | (13) | 8 | (45) | (16) | ||||||||||
Cumulative translation adjustments | (157) | 91 | (345) | (9) | ||||||||||
Pension and other postretirement benefit plans | 149 | 147 | 1,432 | 430 | ||||||||||
Derivative instruments | 32 | 38 | 148 | (100) | ||||||||||
Total other comprehensive income | 11 | 284 | 1,190 | 305 | ||||||||||
Comprehensive income | 1,717 | 283 | 5,834 | 345 | ||||||||||
Comprehensive income attributable to noncontrolling interests, net of tax | 23 | 24 | 69 | 51 | ||||||||||
Comprehensive income attributable to Dow Inc. | $ | 1,694 | $ | 259 | $ | 5,765 | $ | 294 |
In millions, except share amounts (Unaudited)
|
Sep 30,
2021 |
Dec 31,
2020 |
||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and cash equivalents (variable interest entities restricted - 2021: $49; 2020: $26)
|
$ | 2,911 | $ | 5,104 | ||||
Accounts and notes receivable: | ||||||||
Trade (net of allowance for doubtful receivables - 2021: $59; 2020: $51)
|
6,844 | 4,839 | ||||||
Other | 2,565 | 2,551 | ||||||
Inventories | 7,111 | 5,701 | ||||||
Other current assets | 962 | 889 | ||||||
Total current assets | 20,393 | 19,084 | ||||||
Investments | ||||||||
Investment in nonconsolidated affiliates | 1,910 | 1,327 | ||||||
Other investments (investments carried at fair value - 2021: $1,958; 2020: $1,674)
|
3,053 | 2,775 | ||||||
Noncurrent receivables | 472 | 465 | ||||||
Total investments | 5,435 | 4,567 | ||||||
Property | ||||||||
Property | 56,522 | 56,325 | ||||||
Less: Accumulated depreciation | 36,874 | 36,086 | ||||||
Net property (variable interest entities restricted - 2021: $187; 2020: $232)
|
19,648 | 20,239 | ||||||
Other Assets | ||||||||
Goodwill | 8,801 | 8,908 | ||||||
Other intangible assets (net of accumulated amortization - 2021: $4,747; 2020: $4,428)
|
2,962 | 3,352 | ||||||
Operating lease right-of-use assets | 1,727 | 1,856 | ||||||
Deferred income tax assets | 1,357 | 2,215 | ||||||
Deferred charges and other assets | 1,426 | 1,249 | ||||||
Total other assets | 16,273 | 17,580 | ||||||
Total Assets | $ | 61,749 | $ | 61,470 | ||||
Liabilities and Equity | ||||||||
Current Liabilities | ||||||||
Notes payable | $ | 270 | $ | 156 | ||||
Long-term debt due within one year | 291 | 460 | ||||||
Accounts payable: | ||||||||
Trade | 4,601 | 3,763 | ||||||
Other | 2,896 | 2,126 | ||||||
Operating lease liabilities - current | 413 | 416 | ||||||
Income taxes payable | 621 | 397 | ||||||
Accrued and other current liabilities | 3,701 | 3,790 | ||||||
Total current liabilities | 12,793 | 11,108 | ||||||
Long-Term Debt (variable interest entities nonrecourse - 2021: $4; 2020: $6)
|
14,027 | 16,491 | ||||||
Other Noncurrent Liabilities | ||||||||
Deferred income tax liabilities | 501 | 405 | ||||||
Pension and other postretirement benefits - noncurrent | 8,586 | 11,648 | ||||||
Asbestos-related liabilities - noncurrent | 962 | 1,013 | ||||||
Operating lease liabilities - noncurrent | 1,428 | 1,521 | ||||||
Other noncurrent obligations | 6,424 | 6,279 | ||||||
Total other noncurrent liabilities | 17,901 | 20,866 | ||||||
Stockholders’ Equity | ||||||||
Common stock (authorized 5,000,000,000 shares of $0.01 par value each;
issued 2021: 761,777,581 shares; 2020: 755,993,198 shares)
|
8 | 8 | ||||||
Additional paid-in capital | 7,988 | 7,595 | ||||||
Retained earnings | 19,357 | 16,361 | ||||||
Accumulated other comprehensive loss | (9,665) | (10,855) | ||||||
Unearned ESOP shares | (24) | (49) | ||||||
Treasury stock at cost (2021: 22,163,169 shares; 2020: 12,803,303 shares)
|
(1,225) | (625) | ||||||
Dow Inc.’s stockholders’ equity | 16,439 | 12,435 | ||||||
Noncontrolling interests | 589 | 570 | ||||||
Total equity | 17,028 | 13,005 | ||||||
Total Liabilities and Equity | $ | 61,749 | $ | 61,470 |
In millions (Unaudited) | Nine Months Ended | |||||||
Sep 30,
2021 |
Sep 30,
2020 |
|||||||
Operating Activities | ||||||||
Net income | $ | 4,644 | $ | 40 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 2,187 | 2,148 | ||||||
Provision (credit) for deferred income tax | 488 | (198) | ||||||
Earnings of nonconsolidated affiliates less than (in excess of) dividends received | (519) | 515 | ||||||
Net periodic pension benefit cost | 34 | 195 | ||||||
Pension contributions | (1,166) | (188) | ||||||
Net gain on sales of assets, businesses and investments | (67) | (283) | ||||||
Restructuring and asset related charges - net | 22 | 719 | ||||||
Other net loss | 874 | 288 | ||||||
Changes in assets and liabilities, net of effects of acquired and divested companies: | ||||||||
Accounts and notes receivable | (2,222) | 339 | ||||||
Inventories | (1,502) | 587 | ||||||
Accounts payable | 1,487 | (560) | ||||||
Other assets and liabilities, net | 252 | 994 | ||||||
Cash provided by operating activities - continuing operations | 4,512 | 4,596 | ||||||
Cash used for operating activities - discontinued operations | (78) | — | ||||||
Cash provided by operating activities | 4,434 | 4,596 | ||||||
Investing Activities | ||||||||
Capital expenditures | (1,035) | (955) | ||||||
Investment in gas field developments | (44) | (5) | ||||||
Purchases of previously leased assets | (5) | (4) | ||||||
Proceeds from sales of property and businesses, net of cash divested | 15 | 295 | ||||||
Acquisitions of property and businesses, net of cash acquired | (107) | (130) | ||||||
Investments in and loans to nonconsolidated affiliates | — | (280) | ||||||
Distributions and loan repayments from nonconsolidated affiliates | 11 | 7 | ||||||
Purchases of investments | (1,004) | (582) | ||||||
Proceeds from sales and maturities of investments | 644 | 1,009 | ||||||
Other investing activities, net | (10) | 29 | ||||||
Cash used for investing activities | (1,535) | (616) | ||||||
Financing Activities | ||||||||
Changes in short-term notes payable | (44) | (267) | ||||||
Proceeds from issuance of short-term debt greater than three months | 144 | 163 | ||||||
Payments on short-term debt greater than three months | — | (163) | ||||||
Proceeds from issuance of long-term debt | 95 | 4,649 | ||||||
Payments on long-term debt | (2,638) | (4,347) | ||||||
Purchases of treasury stock | (600) | (125) | ||||||
Proceeds from issuance of stock | 212 | 53 | ||||||
Transaction financing, debt issuance and other costs | (536) | (175) | ||||||
Employee taxes paid for share-based payment arrangements | (11) | (26) | ||||||
Distributions to noncontrolling interests | (35) | (19) | ||||||
Dividends paid to stockholders | (1,561) | (1,552) | ||||||
Cash used for financing activities | (4,974) | (1,809) | ||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (57) | 4 | ||||||
Summary | ||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | (2,132) | 2,175 | ||||||
Cash, cash equivalents and restricted cash at beginning of period | 5,108 | 2,380 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 2,976 | $ | 4,555 | ||||
Less: Restricted cash and cash equivalents, included in "Other current assets" | 65 | 6 | ||||||
Cash and cash equivalents at end of period | $ | 2,911 | $ | 4,549 |
Three Months Ended | Nine Months Ended | |||||||||||||
In millions, except per share amounts (Unaudited) |
Sep 30,
2021 |
Sep 30,
2020 |
Sep 30,
2021 |
Sep 30,
2020 |
||||||||||
Common Stock | ||||||||||||||
Balance at beginning and end of period | $ | 8 | $ | 8 | $ | 8 | $ | 8 | ||||||
Additional Paid-in Capital | ||||||||||||||
Balance at beginning of period | 7,898 | 7,431 | 7,595 | 7,325 | ||||||||||
Common stock issued/sold | 11 | 23 | 211 | 53 | ||||||||||
Stock-based compensation and allocation of ESOP shares | 79 | 43 | 182 | 119 | ||||||||||
Balance at end of period | 7,988 | 7,497 | 7,988 | 7,497 | ||||||||||
Retained Earnings | ||||||||||||||
Balance at beginning of period | 18,200 | 16,017 | 16,361 | 17,045 | ||||||||||
Net income (loss) available for Dow Inc. common stockholders | 1,683 | (25) | 4,575 | (11) | ||||||||||
Dividends to stockholders | (518) | (518) | (1,561) | (1,552) | ||||||||||
Other | (8) | (2) | (18) | (10) | ||||||||||
Balance at end of period | 19,357 | 15,472 | 19,357 | 15,472 | ||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||
Balance at beginning of period | (9,676) | (10,225) | (10,855) | (10,246) | ||||||||||
Other comprehensive income | 11 | 284 | 1,190 | 305 | ||||||||||
Balance at end of period | (9,665) | (9,941) | (9,665) | (9,941) | ||||||||||
Unearned ESOP Shares | ||||||||||||||
Balance at beginning of period | (32) | (69) | (49) | (91) | ||||||||||
Allocation of ESOP shares | 8 | 12 | 25 | 34 | ||||||||||
Balance at end of period | (24) | (57) | (24) | (57) | ||||||||||
Treasury Stock | ||||||||||||||
Balance at beginning of period | (825) | (625) | (625) | (500) | ||||||||||
Treasury stock purchases | (400) | — | (600) | (125) | ||||||||||
Balance at end of period | (1,225) | (625) | (1,225) | (625) | ||||||||||
Dow Inc.'s stockholders' equity | 16,439 | 12,354 | 16,439 | 12,354 | ||||||||||
Noncontrolling Interests | 589 | 578 | 589 | 578 | ||||||||||
Total Equity | $ | 17,028 | $ | 12,932 | $ | 17,028 | $ | 12,932 | ||||||
Dividends declared per share of common stock | $ | 0.70 | $ | 0.70 | $ | 2.10 | $ | 2.10 |
Three Months Ended | Nine Months Ended | |||||||||||||
In millions (Unaudited) |
Sep 30,
2021 |
Sep 30,
2020 |
Sep 30,
2021 |
Sep 30,
2020 |
||||||||||
Net sales | $ | 14,837 | $ | 9,712 | $ | 40,604 | $ | 27,836 | ||||||
Cost of sales | 11,610 | 8,371 | 32,410 | 24,209 | ||||||||||
Research and development expenses | 210 | 193 | 632 | 554 | ||||||||||
Selling, general and administrative expenses | 403 | 372 | 1,209 | 1,062 | ||||||||||
Amortization of intangibles | 100 | 100 | 301 | 300 | ||||||||||
Restructuring and asset related charges - net | — | 617 | 22 | 719 | ||||||||||
Integration and separation costs | — | 63 | — | 174 | ||||||||||
Equity in earnings (losses) of nonconsolidated affiliates | 249 | 60 | 751 | (124) | ||||||||||
Sundry income (expense) - net | (356) | 181 | (231) | 150 | ||||||||||
Interest income | 15 | 7 | 36 | 28 | ||||||||||
Interest expense and amortization of debt discount | 178 | 202 | 561 | 617 | ||||||||||
Income before income taxes | 2,244 | 42 | 6,025 | 255 | ||||||||||
Provision for income taxes | 542 | 43 | 1,380 | 215 | ||||||||||
Net income (loss) | 1,702 | (1) | 4,645 | 40 | ||||||||||
Net income attributable to noncontrolling interests | 23 | 24 | 69 | 51 | ||||||||||
Net income (loss) available for The Dow Chemical Company common stockholder | $ | 1,679 | $ | (25) | $ | 4,576 | $ | (11) | ||||||
Depreciation | $ | 517 | $ | 526 | $ | 1,550 | $ | 1,558 | ||||||
Capital expenditures | $ | 413 | $ | 287 | $ | 1,035 | $ | 955 |
Three Months Ended | Nine Months Ended | |||||||||||||
In millions (Unaudited) |
Sep 30,
2021 |
Sep 30,
2020 |
Sep 30,
2021 |
Sep 30,
2020 |
||||||||||
Net income (loss) | $ | 1,702 | $ | (1) | $ | 4,645 | $ | 40 | ||||||
Other comprehensive income (loss), net of tax | ||||||||||||||
Unrealized gains (losses) on investments | (13) | 8 | (45) | (16) | ||||||||||
Cumulative translation adjustments | (157) | 91 | (345) | (9) | ||||||||||
Pension and other postretirement benefit plans | 149 | 147 | 1,432 | 430 | ||||||||||
Derivative instruments | 32 | 38 | 148 | (100) | ||||||||||
Total other comprehensive income | 11 | 284 | 1,190 | 305 | ||||||||||
Comprehensive income | 1,713 | 283 | 5,835 | 345 | ||||||||||
Comprehensive income attributable to noncontrolling interests, net of tax | 23 | 24 | 69 | 51 | ||||||||||
Comprehensive income attributable to The Dow Chemical Company | $ | 1,690 | $ | 259 | $ | 5,766 | $ | 294 |
In millions, except share amounts (Unaudited)
|
Sep 30,
2021 |
Dec 31,
2020 |
||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and cash equivalents (variable interest entities restricted - 2021: $49; 2020: $26)
|
$ | 2,911 | $ | 5,104 | ||||
Accounts and notes receivable: | ||||||||
Trade (net of allowance for doubtful receivables - 2021: $59; 2020: $51)
|
6,844 | 4,839 | ||||||
Other | 2,566 | 2,553 | ||||||
Inventories | 7,111 | 5,701 | ||||||
Other current assets | 927 | 801 | ||||||
Total current assets | 20,359 | 18,998 | ||||||
Investments | ||||||||
Investment in nonconsolidated affiliates | 1,910 | 1,327 | ||||||
Other investments (investments carried at fair value - 2021: $1,958; 2020: $1,674)
|
3,053 | 2,775 | ||||||
Noncurrent receivables | 436 | 426 | ||||||
Total investments | 5,399 | 4,528 | ||||||
Property | ||||||||
Property | 56,522 | 56,325 | ||||||
Less accumulated depreciation | 36,874 | 36,086 | ||||||
Net property (variable interest entities restricted - 2021: $187; 2020: $232)
|
19,648 | 20,239 | ||||||
Other Assets | ||||||||
Goodwill | 8,801 | 8,908 | ||||||
Other intangible assets (net of accumulated amortization - 2021: $4,747; 2020: $4,428)
|
2,962 | 3,352 | ||||||
Operating lease right-of-use assets | 1,727 | 1,856 | ||||||
Deferred income tax assets | 1,357 | 2,215 | ||||||
Deferred charges and other assets | 1,425 | 1,249 | ||||||
Total other assets | 16,272 | 17,580 | ||||||
Total Assets | $ | 61,678 | $ | 61,345 | ||||
Liabilities and Equity | ||||||||
Current Liabilities | ||||||||
Notes payable | $ | 270 | $ | 156 | ||||
Long-term debt due within one year | 291 | 460 | ||||||
Accounts payable: | ||||||||
Trade | 4,601 | 3,763 | ||||||
Other | 2,896 | 2,126 | ||||||
Operating lease liabilities - current | 413 | 416 | ||||||
Income taxes payable | 621 | 397 | ||||||
Accrued and other current liabilities | 3,413 | 3,256 | ||||||
Total current liabilities | 12,505 | 10,574 | ||||||
Long-Term Debt (variable interest entities nonrecourse - 2021: $4; 2020: $6)
|
14,027 | 16,491 | ||||||
Other Noncurrent Liabilities | ||||||||
Deferred income tax liabilities | 501 | 405 | ||||||
Pension and other postretirement benefits - noncurrent | 8,586 | 11,648 | ||||||
Asbestos-related liabilities - noncurrent | 962 | 1,013 | ||||||
Operating lease liabilities - noncurrent | 1,428 | 1,521 | ||||||
Other noncurrent obligations | 6,276 | 6,124 | ||||||
Total other noncurrent liabilities | 17,753 | 20,711 | ||||||
Stockholder's Equity | ||||||||
Common stock (authorized and issued 100 shares of $0.01 par value each)
|
— | — | ||||||
Additional paid-in capital | 7,996 | 7,603 | ||||||
Retained earnings | 18,497 | 16,300 | ||||||
Accumulated other comprehensive loss | (9,665) | (10,855) | ||||||
Unearned ESOP shares | (24) | (49) | ||||||
The Dow Chemical Company’s stockholder's equity | 16,804 | 12,999 | ||||||
Noncontrolling interests | 589 | 570 | ||||||
Total equity | 17,393 | 13,569 | ||||||
Total Liabilities and Equity | $ | 61,678 | $ | 61,345 |
In millions (Unaudited) | Nine Months Ended | |||||||
Sep 30,
2021 |
Sep 30,
2020 |
|||||||
Operating Activities | ||||||||
Net income | $ | 4,645 | $ | 40 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 2,187 | 2,148 | ||||||
Provision (credit) for deferred income tax | 488 | (198) | ||||||
Earnings of nonconsolidated affiliates less than (in excess of) dividends received | (519) | 515 | ||||||
Net periodic pension benefit cost | 34 | 195 | ||||||
Pension contributions | (1,166) | (188) | ||||||
Net gain on sales of assets, businesses and investments | (67) | (283) | ||||||
Restructuring and asset related charges - net | 22 | 719 | ||||||
Other net loss | 878 | 291 | ||||||
Changes in assets and liabilities, net of effects of acquired and divested companies: | ||||||||
Accounts and notes receivable | (2,222) | 339 | ||||||
Inventories | (1,502) | 587 | ||||||
Accounts payable | 1,487 | (560) | ||||||
Other assets and liabilities, net | 369 | 999 | ||||||
Cash provided by operating activities | 4,634 | 4,604 | ||||||
Investing Activities | ||||||||
Capital expenditures | (1,035) | (955) | ||||||
Investment in gas field developments | (44) | (5) | ||||||
Purchases of previously leased assets | (5) | (4) | ||||||
Proceeds from sales of property and businesses, net of cash divested | 15 | 295 | ||||||
Acquisitions of property and businesses, net of cash acquired | (107) | (130) | ||||||
Investments in and loans to nonconsolidated affiliates | — | (280) | ||||||
Distributions and loan repayments from nonconsolidated affiliates | 11 | 7 | ||||||
Purchases of investments | (1,004) | (582) | ||||||
Proceeds from sales and maturities of investments | 644 | 1,009 | ||||||
Other investing activities, net | (10) | 29 | ||||||
Cash used for investing activities | (1,535) | (616) | ||||||
Financing Activities | ||||||||
Changes in short-term notes payable | (44) | (267) | ||||||
Proceeds from issuance of short-term debt greater than three months | 144 | 163 | ||||||
Payments on short-term debt greater than three months | — | (163) | ||||||
Proceeds from issuance of long-term debt | 95 | 4,649 | ||||||
Payments on long-term debt | (2,638) | (4,347) | ||||||
Proceeds from issuance of stock | 212 | 53 | ||||||
Transaction financing, debt issuance and other costs | (536) | (175) | ||||||
Employee taxes paid for share-based payment arrangements | (11) | (26) | ||||||
Distributions to noncontrolling interests | (35) | (19) | ||||||
Dividends paid to Dow Inc. | (2,361) | (1,685) | ||||||
Cash used for financing activities | (5,174) | (1,817) | ||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (57) | 4 | ||||||
Summary | ||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | (2,132) | 2,175 | ||||||
Cash, cash equivalents and restricted cash at beginning of period | 5,108 | 2,380 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 2,976 | $ | 4,555 | ||||
Less: Restricted cash and cash equivalents, included in "Other current assets" | 65 | 6 | ||||||
Cash and cash equivalents at end of period | $ | 2,911 | $ | 4,549 |
Three Months Ended | Nine Months Ended | |||||||||||||
In millions (Unaudited) |
Sep 30,
2021 |
Sep 30,
2020 |
Sep 30,
2021 |
Sep 30,
2020 |
||||||||||
Common Stock | ||||||||||||||
Balance at beginning and end of period | $ | — | $ | — | $ | — | $ | — | ||||||
Additional Paid-in Capital | ||||||||||||||
Balance at beginning of period | 7,906 | 7,439 | 7,603 | 7,333 | ||||||||||
Issuance of parent company stock - Dow Inc. | 11 | 23 | 211 | 53 | ||||||||||
Stock-based compensation and allocation of ESOP shares | 79 | 43 | 182 | 119 | ||||||||||
Balance at end of period | 7,996 | 7,505 | 7,996 | 7,505 | ||||||||||
Retained Earnings | ||||||||||||||
Balance at beginning of period | 17,745 | 16,147 | 16,300 | 17,313 | ||||||||||
Net income (loss) available for The Dow Chemical Company common stockholder | 1,679 | (25) | 4,576 | (11) | ||||||||||
Dividends to Dow Inc. | (919) | (513) | (2,361) | (1,685) | ||||||||||
Other | (8) | (3) | (18) | (11) | ||||||||||
Balance at end of period | 18,497 | 15,606 | 18,497 | 15,606 | ||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||
Balance at beginning of period | (9,676) | (10,225) | (10,855) | (10,246) | ||||||||||
Other comprehensive income | 11 | 284 | 1,190 | 305 | ||||||||||
Balance at end of period | (9,665) | (9,941) | (9,665) | (9,941) | ||||||||||
Unearned ESOP Shares | ||||||||||||||
Balance at beginning of period | (32) | (69) | (49) | (91) | ||||||||||
Allocation of ESOP shares | 8 | 12 | 25 | 34 | ||||||||||
Balance at end of period | (24) | (57) | (24) | (57) | ||||||||||
The Dow Chemical Company's stockholder's equity | 16,804 | 13,113 | 16,804 | 13,113 | ||||||||||
Noncontrolling Interests | 589 | 578 | 589 | 578 | ||||||||||
Total Equity | $ | 17,393 | $ | 13,691 | $ | 17,393 | $ | 13,691 |
Dow Inc. and Subsidiaries
The Dow Chemical Company and Subsidiaries
(Unaudited)
|
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Net Trade Sales by Segment and Business | Three Months Ended | Nine Months Ended | ||||||||||||
In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||
Hydrocarbons & Energy | $ | 2,251 | $ | 1,021 | $ | 6,010 | $ | 3,027 | ||||||
Packaging and Specialty Plastics | 5,485 | 3,544 | 14,929 | 10,148 | ||||||||||
Packaging & Specialty Plastics | $ | 7,736 | $ | 4,565 | $ | 20,939 | $ | 13,175 | ||||||
Industrial Solutions | $ | 1,377 | $ | 931 | $ | 3,627 | $ | 2,879 | ||||||
Polyurethanes & Construction Chemicals | 3,102 | 2,124 | 8,670 | 5,632 | ||||||||||
Other | 2 | 3 | 6 | 9 | ||||||||||
Industrial Intermediates & Infrastructure | $ | 4,481 | $ | 3,058 | $ | 12,303 | $ | 8,520 | ||||||
Coatings & Performance Monomers | $ | 1,110 | $ | 844 | $ | 2,975 | $ | 2,438 | ||||||
Consumer Solutions | 1,416 | 1,158 | 4,139 | 3,484 | ||||||||||
Performance Materials & Coatings | $ | 2,526 | $ | 2,002 | $ | 7,114 | $ | 5,922 | ||||||
Corporate | $ | 94 | $ | 87 | $ | 248 | $ | 219 | ||||||
Total | $ | 14,837 | $ | 9,712 | $ | 40,604 | $ | 27,836 |
Net Trade Sales by Geographic Region | Three Months Ended | Nine Months Ended | ||||||||||||
In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||
U.S. & Canada | $ | 5,476 | $ | 3,391 | $ | 14,431 | $ | 9,885 | ||||||
EMEAI 1
|
5,229 | 3,272 | 14,660 | 9,394 | ||||||||||
Asia Pacific | 2,579 | 2,073 | 7,423 | 5,850 | ||||||||||
Latin America | 1,553 | 976 | 4,090 | 2,707 | ||||||||||
Total | $ | 14,837 | $ | 9,712 | $ | 40,604 | $ | 27,836 |
Contract Assets and Liabilities | Balance Sheet Classification | Sep 30, 2021 | Dec 31, 2020 | ||||||||
In millions | |||||||||||
Accounts and notes receivable - trade | Accounts and notes receivable - trade | $ | 6,844 | $ | 4,839 | ||||||
Contract assets - current | Other current assets | $ | 52 | $ | 58 | ||||||
Contract assets - noncurrent | Deferred charges and other assets | $ | 39 | $ | 11 | ||||||
Contract liabilities - current 1
|
Accrued and other current liabilities | $ | 207 | $ | 349 | ||||||
Contract liabilities - noncurrent | Other noncurrent obligations | $ | 1,910 | $ | 1,915 |
2020 Restructuring Program | Severance and Related Benefit Costs | Asset Write-downs and Write-offs | Costs Associated with Exit and Disposal Activities | Total | ||||||||||
In millions | ||||||||||||||
Packaging & Specialty Plastics | $ | — | $ | 11 | $ | — | $ | 11 | ||||||
Industrial Intermediates & Infrastructure | — | 22 | — | 22 | ||||||||||
Performance Materials & Coatings | — | 117 | 57 | 174 | ||||||||||
Corporate | 297 | 47 | 24 | 368 | ||||||||||
Total restructuring charges | $ | 297 | $ | 197 | $ | 81 | $ | 575 | ||||||
Charges against the reserve | — | (197) | — | (197) | ||||||||||
Cash payments | (1) | — | — | (1) | ||||||||||
Reserve balance at Sep 30, 2020 | $ | 296 | $ | — | $ | 81 | $ | 377 | ||||||
Performance Materials & Coatings | $ | — | $ | (1) | $ | 4 | $ | 3 | ||||||
Corporate | — | — | (5) | (5) | ||||||||||
Total restructuring charges | $ | — | $ | (1) | $ | (1) | $ | (2) | ||||||
Charges against the reserve | — | 1 | (5) | (4) | ||||||||||
Cash payments | (7) | — | — | (7) | ||||||||||
Reserve balance at Dec 31, 2020 | $ | 289 | $ | — | $ | 75 | $ | 364 | ||||||
Cash payments | (37) | — | (12) | (49) | ||||||||||
Reserve balance at Mar 31, 2021 | $ | 252 | $ | — | $ | 63 | $ | 315 | ||||||
Packaging & Specialty Plastics | $ | — | $ | — | $ | 8 | $ | 8 | ||||||
Industrial Intermediates & Infrastructure | — | 1 | — | 1 | ||||||||||
Performance Materials & Coatings | — | 8 | 2 | 10 | ||||||||||
Corporate | — | 3 | — | 3 | ||||||||||
Total restructuring charges | $ | — | $ | 12 | $ | 10 | $ | 22 | ||||||
Charges against the reserve | — | (12) | — | (12) | ||||||||||
Cash payments | (53) | — | (3) | (56) | ||||||||||
Reserve balance at Jun 30, 2021 | $ | 199 | $ | — | $ | 70 | $ | 269 | ||||||
Cash payments | (55) | — | (2) | (57) | ||||||||||
Reserve balance at Sep 30, 2021 | $ | 144 | $ | — | $ | 68 | $ | 212 |
Dow Inc. Sundry Income (Expense) – Net | Three Months Ended | Nine Months Ended | ||||||||||||
In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||
Non-operating pension and other postretirement benefit plan net credits 1
|
$ | 86 | $ | 26 | $ | 247 | $ | 81 | ||||||
Foreign exchange losses | (5) | (24) | (21) | (42) | ||||||||||
Gain on divestiture of rail infrastructure 2
|
— | 233 | — | 233 | ||||||||||
Loss on early extinguishment of debt 3
|
(472) | (63) | (574) | (149) | ||||||||||
Loss on divestitures 4
|
— | (13) | — | (13) | ||||||||||
Gains on sales of other assets and investments | 12 | 2 | 74 | 7 | ||||||||||
Indemnification and other transaction related costs 5
|
— | — | (5) | — | ||||||||||
Gain related to Nova ethylene asset matter 6
|
— | — | — | 6 | ||||||||||
Dow Silicones breast implant liability adjustment 6
|
— | — | — | 5 | ||||||||||
Luxi arbitration award 6
|
54 | — | 54 | — | ||||||||||
Other - net | (25) | 21 | — | 26 | ||||||||||
Total sundry income (expense) – net | $ | (350) | $ | 182 | $ | (225) | $ | 154 |
TDCC Sundry Income (Expense) – Net | Three Months Ended | Nine Months Ended | ||||||||||||
In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||
Non-operating pension and other postretirement benefit plan net credits 1
|
$ | 86 | $ | 26 | $ | 247 | $ | 81 | ||||||
Foreign exchange losses | (8) | (22) | (24) | (45) | ||||||||||
Gain on divestiture of rail infrastructure 2
|
— | 233 | — | 233 | ||||||||||
Loss on early extinguishment of debt 3
|
(472) | (63) | (574) | (149) | ||||||||||
Loss on divestitures 4
|
— | (13) | — | (13) | ||||||||||
Gains on sales of other assets and investments | 12 | 2 | 74 | 7 | ||||||||||
Gain related to Nova ethylene asset matter 5
|
— | — | — | 6 | ||||||||||
Dow Silicones breast implant liability adjustment 5
|
— | — | — | 5 | ||||||||||
Luxi arbitration award 5
|
54 | — | 54 | — | ||||||||||
Other - net | (28) | 18 | (8) | 25 | ||||||||||
Total sundry income (expense) – net | $ | (356) | $ | 181 | $ | (231) | $ | 150 |
Net Income (Loss) for Earnings Per Share Calculations | Three Months Ended | Nine Months Ended | ||||||||||||
In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||
Net income (loss) | $ | 1,706 | $ | (1) | $ | 4,644 | $ | 40 | ||||||
Net income attributable to noncontrolling interests | 23 | 24 | 69 | 51 | ||||||||||
Net income attributable to participating securities 1
|
8 | 3 | 23 | 7 | ||||||||||
Net income (loss) attributable to common stockholders | $ | 1,675 | $ | (28) | $ | 4,552 | $ | (18) |
Earnings (Loss) Per Share - Basic and Diluted | Three Months Ended | Nine Months Ended | ||||||||||||
Dollars per share | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||
Earnings (loss) per common share - basic | $ | 2.25 | $ | (0.04) | $ | 6.11 | $ | (0.02) | ||||||
Earnings (loss) per common share - diluted | $ | 2.23 | $ | (0.04) | $ | 6.06 | $ | (0.02) |
Share Count Information | Three Months Ended | Nine Months Ended | ||||||||||||
Shares in millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||
Weighted-average common shares outstanding - basic | 744.5 | 740.5 | 745.4 | 740.0 | ||||||||||
Plus dilutive effect of equity compensation plans 2
|
5.5 | — | 5.5 | — | ||||||||||
Weighted-average common shares outstanding - diluted 2
|
750.0 | 740.5 | 750.9 | 740.0 | ||||||||||
Stock options and restricted stock units excluded from EPS calculations 3
|
7.2 | 26.9 | 5.6 | 27.1 |
Inventories | Sep 30, 2021 | Dec 31, 2020 | ||||||
In millions | ||||||||
Finished goods | $ | 4,233 | $ | 3,140 | ||||
Work in process | 1,561 | 996 | ||||||
Raw materials | 867 | 598 | ||||||
Supplies | 875 | 933 | ||||||
Total | $ | 7,536 | $ | 5,667 | ||||
Adjustment of inventories to a LIFO basis | (425) | 34 | ||||||
Total inventories | $ | 7,111 | $ | 5,701 |
Investments in Nonconsolidated Affiliates | Sep 30, 2021 | Dec 31, 2020 | ||||||
In millions | ||||||||
Investment in nonconsolidated affiliates | $ | 1,910 | $ | 1,327 | ||||
Other noncurrent obligations | — | (169) | ||||||
Net investment in nonconsolidated affiliates | $ | 1,910 | $ | 1,158 |
Dividends Received from Nonconsolidated Affiliates | Nine Months Ended | |||||||
In millions | Sep 30, 2021 | Sep 30, 2020 | ||||||
Dividends from nonconsolidated affiliates 1
|
$ | 232 | $ | 391 |
Goodwill | Packaging & Specialty Plastics | Industrial Intermediates & Infrastructure | Performance Materials & Coatings | Total | ||||||||||
In millions | ||||||||||||||
Net goodwill at Dec 31, 2020 | $ | 5,115 | $ | 1,100 | $ | 2,693 | $ | 8,908 | ||||||
Foreign currency impact | (7) | (3) | (97) | (107) | ||||||||||
Net goodwill at Sep 30, 2021 | $ | 5,108 | $ | 1,097 | $ | 2,596 | $ | 8,801 |
Other Intangible Assets | Sep 30, 2021 | Dec 31, 2020 | ||||||||||||||||||
In millions | Gross Carrying Amount | Accum Amort | Net | Gross Carrying Amount | Accum Amort | Net | ||||||||||||||
Intangible assets with finite lives: | ||||||||||||||||||||
Developed technology | $ | 2,637 | $ | (1,833) | $ | 804 | $ | 2,638 | $ | (1,677) | $ | 961 | ||||||||
Software | 1,494 | (1,042) | 452 | 1,489 | (989) | 500 | ||||||||||||||
Trademarks/tradenames | 352 | (344) | 8 | 352 | (343) | 9 | ||||||||||||||
Customer-related | 3,226 | (1,528) | 1,698 | 3,301 | (1,419) | 1,882 | ||||||||||||||
Total other intangible assets | $ | 7,709 | $ | (4,747) | $ | 2,962 | $ | 7,780 | $ | (4,428) | $ | 3,352 |
Amortization Expense | Three Months Ended | Nine Months Ended | ||||||||||||
In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||
Other intangible assets, excluding software | $ | 100 | $ | 100 | $ | 301 | $ | 300 | ||||||
Software, included in “Cost of sales” | $ | 22 | $ | 24 | $ | 67 | $ | 72 |
Estimated Amortization Expense | |||||
In millions
|
|||||
2021 | $ | 475 | |||
2022 | $ | 410 | |||
2023 | $ | 377 | |||
2024 | $ | 359 | |||
2025 | $ | 268 | |||
2026 | $ | 194 |
Notes Payable | Sep 30, 2021 | Dec 31, 2020 | ||||||
In millions | ||||||||
Notes payable to banks and other lenders | $ | 270 | $ | 156 | ||||
Period-end average interest rates | 6.38 | % | 3.89 | % |
Long-Term Debt | 2021 Average Rate | Sep 30, 2021 | 2020 Average Rate | Dec 31, 2020 | ||||||||||
In millions
|
||||||||||||||
Promissory notes and debentures: | ||||||||||||||
Final maturity 2021 | — | % | $ | — | 8.95 | % | $ | 173 | ||||||
Final maturity 2022 | 8.64 | % | 121 | 8.64 | % | 121 | ||||||||
Final maturity 2023 | 7.63 | % | 250 | 7.63 | % | 250 | ||||||||
Final maturity 2024 | — | % | — | 3.43 | % | 1,017 | ||||||||
Final maturity 2025 | 5.63 | % | 333 | 5.13 | % | 625 | ||||||||
Final maturity 2026 | 3.63 | % | 750 | 3.63 | % | 750 | ||||||||
Final maturity 2027 and thereafter 1
|
5.15 | % | 9,364 | 5.34 | % | 10,138 | ||||||||
Other facilities: | ||||||||||||||
Foreign currency notes and loans, various rates and maturities | 1.22 | % | 2,889 | 1.41 | % | 3,189 | ||||||||
InterNotes®, varying maturities through 2051 | 3.40 | % | 382 | 3.56 | % | 535 | ||||||||
Finance lease obligations 2
|
542 | 518 | ||||||||||||
Unamortized debt discount and issuance costs | (313) | (365) | ||||||||||||
Long-term debt due within one year 3
|
(291) | (460) | ||||||||||||
Long-term debt | $ | 14,027 | $ | 16,491 |
Maturities of Long-Term Debt for Next Five Years at Sep 30, 2021 | |||||
In millions
|
|||||
2021 | $ | 122 | |||
2022 | $ | 191 | |||
2023 | $ | 345 | |||
2024 | $ | 41 | |||
2025 | $ | 364 | |||
2026 | $ | 801 |
Committed and Available Credit Facilities at Sep 30, 2021 | ||||||||||||||
In millions | Committed Credit | Available Credit | Maturity Date | Interest | ||||||||||
Five Year Competitive Advance and Revolving Credit Facility | $ | 5,000 | $ | 5,000 | October 2024 | Floating rate | ||||||||
Bilateral Revolving Credit Facility | 300 | 300 | December 2021 | Floating rate | ||||||||||
Bilateral Revolving Credit Facility | 300 | 300 | December 2021 | Floating rate | ||||||||||
Bilateral Revolving Credit Facility | 150 | 150 | March 2022 | Floating rate | ||||||||||
Bilateral Revolving Credit Facility | 100 | 100 | June 2022 | Floating rate | ||||||||||
Bilateral Revolving Credit Facility | 200 | 200 | September 2022 | Floating rate | ||||||||||
Bilateral Revolving Credit Facility 1
|
200 | 200 | November 2022 | Floating rate | ||||||||||
Bilateral Revolving Credit Facility | 200 | 200 | September 2023 | Floating rate | ||||||||||
Bilateral Revolving Credit Facility | 250 | 250 | September 2023 | Floating rate | ||||||||||
Bilateral Revolving Credit Facility | 300 | 300 | September 2023 | Floating rate | ||||||||||
Bilateral Revolving Credit Facility | 100 | 100 | October 2024 | Floating rate | ||||||||||
Bilateral Revolving Credit Facility | 100 | 100 | October 2024 | Floating rate | ||||||||||
Bilateral Revolving Credit Facility | 200 | 200 | November 2024 | Floating rate | ||||||||||
Bilateral Revolving Credit Facility | 100 | 100 | March 2025 | Floating rate | ||||||||||
Bilateral Revolving Credit Facility | 250 | 250 | March 2025 | Floating rate | ||||||||||
Bilateral Revolving Credit Facility | 350 | 350 | March 2025 | Floating rate | ||||||||||
Total committed and available credit facilities | $ | 8,100 | $ | 8,100 |
Guarantees | Sep 30, 2021 | Dec 31, 2020 | ||||||||||||||||||
In millions |
Final
Expiration |
Maximum
Future Payments 1
|
Recorded Liability |
Final
Expiration |
Maximum
Future Payments |
Recorded Liability | ||||||||||||||
Guarantees | 2038 | $ | 1,312 | $ | 225 | 2023 | $ | 251 | $ | 2 |
Lease Cost | Three Months Ended | Nine Months Ended | ||||||||||||
In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||
Operating lease cost | $ | 123 | $ | 122 | $ | 362 | $ | 362 | ||||||
Finance lease cost | ||||||||||||||
Amortization of right-of-use assets - finance | $ | 19 | $ | 16 | $ | 53 | $ | 42 | ||||||
Interest on lease liabilities - finance | 6 | 7 | 19 | 19 | ||||||||||
Total finance lease cost | $ | 25 | $ | 23 | $ | 72 | $ | 61 | ||||||
Short-term lease cost | 57 | 54 | 177 | 161 | ||||||||||
Variable lease cost | 78 | 45 | 228 | 157 | ||||||||||
Sublease income | (2) | (2) | (5) | (4) | ||||||||||
Total lease cost | $ | 281 | $ | 242 | $ | 834 | $ | 737 |
Other Lease Information | Nine Months Ended | |||||||
In millions | Sep 30, 2021 | Sep 30, 2020 | ||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
Operating cash flows for operating leases | $ | 364 | $ | 357 | ||||
Operating cash flows for finance leases | $ | 19 | $ | 19 | ||||
Financing cash flows for finance leases | $ | 48 | $ | 34 | ||||
Right-of-use assets obtained in exchange for lease obligations: | ||||||||
Operating leases | $ | 133 | $ | 68 | ||||
Finance leases | $ | 73 | $ | 142 |
Lease Position | Balance Sheet Classification | Sep 30, 2021 | Dec 31, 2020 | ||||||||
In millions | |||||||||||
Assets | |||||||||||
Operating lease assets | Operating lease right-of-use assets | $ | 1,727 | $ | 1,856 | ||||||
Finance lease assets | Property | 726 | 665 | ||||||||
Finance lease amortization | Accumulated depreciation | (263) | (216) | ||||||||
Total lease assets | $ | 2,190 | $ | 2,305 | |||||||
Liabilities | |||||||||||
Current | |||||||||||
Operating | Operating lease liabilities - current | $ | 413 | $ | 416 | ||||||
Finance | Long-term debt due within one year | 68 | 54 | ||||||||
Noncurrent | |||||||||||
Operating | Operating lease liabilities - noncurrent | 1,428 | 1,521 | ||||||||
Finance | Long-Term Debt | 474 | 464 | ||||||||
Total lease liabilities | $ | 2,383 | $ | 2,455 |
Lease Term and Discount Rate | Sep 30, 2021 | Dec 31, 2020 | ||||||
Weighted-average remaining lease term | ||||||||
Operating leases | 7.2 years | 7.6 years | ||||||
Finance leases | 10.3 years | 11.6 years | ||||||
Weighted-average discount rate | ||||||||
Operating leases | 3.63 | % | 3.84 | % | ||||
Finance leases | 5.04 | % | 5.41 | % |
Maturities of Lease Liabilities | Sep 30, 2021 | |||||||
In millions | Operating Leases | Finance Leases | ||||||
2021 | $ | 140 | $ | 29 | ||||
2022 | 434 | 89 | ||||||
2023 | 351 | 113 | ||||||
2024 | 273 | 58 | ||||||
2025 | 201 | 47 | ||||||
2026 and thereafter | 744 | 375 | ||||||
Total future undiscounted lease payments | $ | 2,143 | $ | 711 | ||||
Less: Imputed interest | 302 | 169 | ||||||
Total present value of lease liabilities | $ | 1,841 | $ | 542 |
Lease Guarantees | Sep 30, 2021 | Dec 31, 2020 | ||||||||||||||||||
In millions | Final Expiration | Maximum Future Payments | Recorded Liability | Final Expiration | Maximum Future Payments | Recorded Liability | ||||||||||||||
Residual value guarantees | 2031 | $ | 805 | $ | 56 | 2030 | $ | 818 | $ | 22 |
Accumulated Other Comprehensive Loss | Three Months Ended | Nine Months Ended | ||||||||||||
In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||
Unrealized Gains (Losses) on Investments | ||||||||||||||
Beginning balance | $ | 72 | $ | 40 | $ | 104 | $ | 64 | ||||||
Unrealized gains (losses) on investments | (10) | 35 | (25) | 39 | ||||||||||
Tax (expense) benefit | 3 | (8) | 5 | (10) | ||||||||||
Net unrealized gains (losses) on investments | (7) | 27 | (20) | 29 | ||||||||||
(Gains) losses reclassified from AOCL to net income 1
|
(8) | (25) | (33) | (59) | ||||||||||
Tax expense (benefit) 2
|
2 | 6 | 8 | 14 | ||||||||||
Net (gains) losses reclassified from AOCL to net income | (6) | (19) | (25) | (45) | ||||||||||
Other comprehensive income (loss), net of tax | (13) | 8 | (45) | (16) | ||||||||||
Ending balance | $ | 59 | $ | 48 | $ | 59 | $ | 48 | ||||||
Cumulative Translation Adjustment | ||||||||||||||
Beginning balance | $ | (1,118) | $ | (1,235) | $ | (930) | $ | (1,135) | ||||||
Gains (losses) on foreign currency translation | (148) | 116 | (298) | 18 | ||||||||||
Tax (expense) benefit | (8) | 4 | (43) | 18 | ||||||||||
Net gains (losses) on foreign currency translation | (156) | 120 | (341) | 36 | ||||||||||
(Gains) losses reclassified from AOCL to net income 3
|
(1) | (29) | (4) | (45) | ||||||||||
Other comprehensive income (loss), net of tax | (157) | 91 | (345) | (9) | ||||||||||
Ending balance | $ | (1,275) | $ | (1,144) | $ | (1,275) | $ | (1,144) | ||||||
Pension and Other Postretirement Benefits | ||||||||||||||
Beginning balance | $ | (8,276) | $ | (8,498) | $ | (9,559) | $ | (8,781) | ||||||
Gains (losses) arising during the period 4
|
2 | 2 | 1,270 | 2 | ||||||||||
Tax (expense) benefit | — | — | (298) | — | ||||||||||
Net gains (losses) arising during the period | 2 | 2 | 972 | 2 | ||||||||||
Amortization and recognition of net loss and prior service credits 5
|
191 | 188 | 583 | 557 | ||||||||||
Tax expense (benefit) 2
|
(44) | (43) | (123) | (129) | ||||||||||
Net loss and prior service credits reclassified from AOCL to net income | 147 | 145 | 460 | 428 | ||||||||||
Other comprehensive income (loss), net of tax | 149 | 147 | 1,432 | 430 | ||||||||||
Ending balance | $ | (8,127) | $ | (8,351) | $ | (8,127) | $ | (8,351) | ||||||
Derivative Instruments | ||||||||||||||
Beginning balance | $ | (354) | $ | (532) | $ | (470) | $ | (394) | ||||||
Gains (losses) on derivative instruments | 55 | 45 | 167 | (114) | ||||||||||
Tax (expense) benefit | (9) | (10) | (10) | (2) | ||||||||||
Net gains (losses) on derivative instruments | 46 | 35 | 157 | (116) | ||||||||||
(Gains) losses reclassified from AOCL to net income 6
|
(16) | 5 | (10) | 24 | ||||||||||
Tax expense (benefit) 2
|
2 | (2) | 1 | (8) | ||||||||||
Net (gains) losses reclassified from AOCL to net income | (14) | 3 | (9) | 16 | ||||||||||
Other comprehensive income (loss), net of tax | 32 | 38 | 148 | (100) | ||||||||||
Ending balance | $ | (322) | $ | (494) | $ | (322) | $ | (494) | ||||||
Total AOCL ending balance | $ | (9,665) | $ | (9,941) | $ | (9,665) | $ | (9,941) |
Noncontrolling Interests | Three Months Ended | Nine Months Ended | ||||||||||||
In millions
|
Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||
Balance at beginning of period | $ | 580 | $ | 560 | $ | 570 | $ | 553 | ||||||
Net income attributable to noncontrolling interests | 23 | 24 | 69 | 51 | ||||||||||
Distributions to noncontrolling interests 1
|
(7) | — | (27) | (12) | ||||||||||
Deconsolidation of noncontrolling interests 2
|
— | (7) | — | (7) | ||||||||||
Cumulative translation adjustments | (8) | 2 | (23) | (6) | ||||||||||
Other | 1 | (1) | — | (1) | ||||||||||
Balance at end of period | $ | 589 | $ | 578 | $ | 589 | $ | 578 |
Net Periodic Benefit Cost for All Significant Plans | Three Months Ended | Nine Months Ended | ||||||||||||
In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||
Defined Benefit Pension Plans | ||||||||||||||
Service cost | $ | 95 | $ | 100 | $ | 293 | $ | 298 | ||||||
Interest cost | 151 | 191 | 444 | 574 | ||||||||||
Expected return on plan assets | (434) | (415) | (1,291) | (1,241) | ||||||||||
Amortization of prior service credit | (5) | (4) | (15) | (14) | ||||||||||
Amortization of net loss | 198 | 194 | 622 | 578 | ||||||||||
Curtailment gain | — | — | (19) | — | ||||||||||
Net periodic benefit cost | $ | 5 | $ | 66 | $ | 34 | $ | 195 | ||||||
Other Postretirement Benefit Plans | ||||||||||||||
Service cost | $ | 2 | $ | 2 | $ | 6 | $ | 6 | ||||||
Interest cost | 6 | 10 | 17 | 29 | ||||||||||
Amortization of net gain | (2) | (2) | (5) | (7) | ||||||||||
Net periodic benefit cost | $ | 6 | $ | 10 | $ | 18 | $ | 28 |
Fair Value of Financial Instruments | Sep 30, 2021 | Dec 31, 2020 | ||||||||||||||||||||||||
In millions | Cost | Gain | Loss | Fair Value | Cost | Gain | Loss | Fair Value | ||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||||||||
Held-to-maturity securities 1
|
$ | 921 | $ | — | $ | — | $ | 921 | $ | 980 | $ | — | $ | — | $ | 980 | ||||||||||
Money market funds | 498 | — | — | 498 | 484 | — | — | 484 | ||||||||||||||||||
Total cash equivalents | $ | 1,419 | $ | — | $ | — | $ | 1,419 | $ | 1,464 | $ | — | $ | — | $ | 1,464 | ||||||||||
Marketable securities 2
|
$ | 138 | $ | 3 | $ | — | $ | 141 | $ | 45 | $ | — | $ | — | $ | 45 | ||||||||||
Other investments: | ||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||
Government debt 3
|
$ | 687 | $ | 18 | $ | (24) | $ | 681 | $ | 673 | $ | 35 | $ | (10) | $ | 698 | ||||||||||
Corporate bonds | 1,172 | 89 | (9) | 1,252 | 822 | 119 | (5) | 936 | ||||||||||||||||||
Total debt securities | $ | 1,859 | $ | 107 | $ | (33) | $ | 1,933 | $ | 1,495 | $ | 154 | $ | (15) | $ | 1,634 | ||||||||||
Equity securities 4
|
6 | 19 | — | 25 | 6 | 34 | — | 40 | ||||||||||||||||||
Total other investments
|
$ | 1,865 | $ | 126 | $ | (33) | $ | 1,958 | $ | 1,501 | $ | 188 | $ | (15) | $ | 1,674 | ||||||||||
Total cash equivalents, marketable securities and other investments
|
$ | 3,422 | $ | 129 | $ | (33) | $ | 3,518 | $ | 3,010 | $ | 188 | $ | (15) | $ | 3,183 | ||||||||||
Long-term debt including debt due within one year 5
|
$ | (14,318) | $ | 21 | $ | (2,673) | $ | (16,970) | $ | (16,951) | $ | 6 | $ | (3,659) | $ | (20,604) | ||||||||||
Derivatives relating to: | ||||||||||||||||||||||||||
Interest rates 6
|
$ | — | $ | — | $ | (166) | $ | (166) | $ | — | $ | 41 | $ | (182) | $ | (141) | ||||||||||
Foreign currency | — | 53 | (82) | (29) | — | 69 | (84) | (15) | ||||||||||||||||||
Commodities 6
|
— | 240 | (132) | 108 | — | 63 | (84) | (21) | ||||||||||||||||||
Total derivatives | $ | — | $ | 293 | $ | (380) | $ | (87) | $ | — | $ | 173 | $ | (350) | $ | (177) |
Investing Results | Nine Months Ended | |||||||
In millions | Sep 30, 2021 | Sep 30, 2020 | ||||||
Proceeds from sales of available-for-sale securities | $ | 339 | $ | 742 | ||||
Gross realized gains | $ | 41 | $ | 84 | ||||
Gross realized losses | $ | (8) | $ | (25) |
Investments in Equity Securities | Sep 30, 2021 | Dec 31, 2020 | ||||||
In millions | ||||||||
Readily determinable fair value | $ | 25 | $ | 40 | ||||
Not readily determinable fair value | $ | 226 | $ | 215 |
Notional Amounts - Net | Sep 30, 2021 | Dec 31, 2020 | ||||||
In millions | ||||||||
Derivatives designated as hedging instruments: | ||||||||
Interest rate contracts | $ | 3,005 | $ | 612 | ||||
Foreign currency contracts | $ | 3,725 | $ | 3,784 | ||||
Derivatives not designated as hedging instruments: | ||||||||
Interest rate contracts | $ | 58 | $ | 94 | ||||
Foreign currency contracts | $ | 13,663 | $ | 9,187 |
Commodity Notionals - Net | Sep 30, 2021 | Dec 31, 2020 | Notional Volume Unit | ||||||||
Derivatives designated as hedging instruments: | |||||||||||
Hydrocarbon derivatives | 6.9 | 10.9 | million barrels of oil equivalent | ||||||||
Derivatives not designated as hedging instruments: | |||||||||||
Hydrocarbon derivatives | 0.1 | — | million barrels of oil equivalent | ||||||||
Maturity Dates of Derivatives Designated as Hedging Instruments | Year | ||||
Interest rate contracts | 2023 | ||||
Foreign currency contracts | 2023 | ||||
Commodity contracts | 2023 |
Fair Value of Derivative Instruments | Sep 30, 2021 | |||||||||||||
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: | ||||||||||||||
Interest rate contracts | Deferred charges and other assets | $ | 182 | $ | (182) | $ | — | |||||||
Foreign currency contracts | Other current assets | 32 | (18) | 14 | ||||||||||
Foreign currency contracts | Deferred charges and other assets | 86 | (51) | 35 | ||||||||||
Commodity contracts | Other current assets | 448 | (253) | 195 | ||||||||||
Commodity contracts | Deferred charges and other assets | 68 | (32) | 36 | ||||||||||
Total | $ | 816 | $ | (536) | $ | 280 | ||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||
Foreign currency contracts | Other current assets | $ | 20 | $ | (16) | $ | 4 | |||||||
Commodity contracts | Other current assets | 29 | (20) | 9 | ||||||||||
Commodity contracts | Deferred charges and other assets | 2 | (2) | — | ||||||||||
Total | $ | 51 | $ | (38) | $ | 13 | ||||||||
Total asset derivatives | $ | 867 | $ | (574) | $ | 293 | ||||||||
Liability derivatives | ||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||
Interest rate contracts | Other noncurrent obligations | $ | 233 | $ | (182) | $ | 51 | |||||||
Foreign currency contracts | Accrued and other current liabilities | 21 | (18) | 3 | ||||||||||
Foreign currency contracts | Other noncurrent obligations | 51 | (51) | — | ||||||||||
Commodity contracts | Accrued and other current liabilities | 391 | (287) | 104 | ||||||||||
Commodity contracts | Other noncurrent obligations | 48 | (34) | 14 | ||||||||||
Total | $ | 744 | $ | (572) | $ | 172 | ||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||
Interest rate contracts | Other noncurrent obligations | $ | 115 | $ | — | $ | 115 | |||||||
Foreign currency contracts | Accrued and other current liabilities | 95 | (16) | 79 | ||||||||||
Commodity contracts | Accrued and other current liabilities | 34 | (21) | 13 | ||||||||||
Commodity contracts | Other noncurrent obligations | 3 | (2) | 1 | ||||||||||
Total | $ | 247 | $ | (39) | $ | 208 | ||||||||
Total liability derivatives | $ | 991 | $ | (611) | $ | 380 |
Fair Value of Derivative Instruments | Dec 31, 2020 | |||||||||||||
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: | ||||||||||||||
Interest rate contracts | Other current assets | $ | 3 | $ | (3) | $ | — | |||||||
Foreign currency contracts | Other current assets | 39 | (19) | 20 | ||||||||||
Commodity contracts | Other current assets | 146 | (109) | 37 | ||||||||||
Commodity contracts | Deferred charges and other assets | 31 | (8) | 23 | ||||||||||
Total | $ | 219 | $ | (139) | $ | 80 | ||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||
Interest rate contracts | Deferred charges and other assets | $ | 41 | $ | — | $ | 41 | |||||||
Foreign currency contracts | Other current assets | 74 | (25) | 49 | ||||||||||
Commodity contracts | Other current assets | 4 | (1) | 3 | ||||||||||
Total | $ | 119 | $ | (26) | $ | 93 | ||||||||
Total asset derivatives | $ | 338 | $ | (165) | $ | 173 | ||||||||
Liability derivatives | ||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||
Interest rate contracts | Accrued and other current liabilities | $ | 7 | $ | (3) | $ | 4 | |||||||
Foreign currency contracts | Accrued and other current liabilities | 93 | (19) | 74 | ||||||||||
Commodity contracts | Accrued and other current liabilities | 151 | (112) | 39 | ||||||||||
Commodity contracts | Other noncurrent obligations | 48 | (9) | 39 | ||||||||||
Total | $ | 299 | $ | (143) | $ | 156 | ||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||
Interest rate contracts | Other noncurrent obligations | $ | 178 | $ | — | $ | 178 | |||||||
Foreign currency contracts | Accrued and other current liabilities | 35 | (25) | 10 | ||||||||||
Commodity contracts | Accrued and other current liabilities | 9 | (3) | 6 | ||||||||||
Total | $ | 222 | $ | (28) | $ | 194 | ||||||||
Total liability derivatives | $ | 521 | $ | (171) | $ | 350 |
Effect of Derivative Instruments |
Amount of gain (loss) recognized in OCI 1
|
Amount of gain (loss) recognized in income 2
|
Income Statement Classification | ||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | |||||||||||||
Derivatives designated as hedging
instruments: |
|||||||||||||||||
Fair value hedges: | |||||||||||||||||
Excluded components 3
|
$ | — | $ | 3 | $ | — | $ | — | Interest expense and amortization of debt discount | ||||||||
Cash flow hedges: | |||||||||||||||||
Interest rate contracts | 5 | — | (2) | (1) | Interest expense and amortization of debt discount | ||||||||||||
Foreign currency contracts | 4 | (12) | (3) | (1) | Cost of sales | ||||||||||||
Commodity contracts | 37 | 42 | 21 | (4) | Cost of sales | ||||||||||||
Net foreign investment hedges: | |||||||||||||||||
Foreign currency contracts | 20 | (19) | — | — | |||||||||||||
Excluded components 3
|
12 | — | 1 | 2 | Sundry income (expense) - net | ||||||||||||
Total derivatives designated as hedging instruments | $ | 78 | $ | 14 | $ | 17 | $ | (4) | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | (2) | $ | (3) | Interest expense and amortization of debt discount | ||||||||
Foreign currency contracts | — | — | (84) | (5) | Sundry income (expense) - net | ||||||||||||
Commodity contracts | — | — | (12) | (7) | Cost of sales | ||||||||||||
Total derivatives not designated as
hedging instruments |
$ | — | $ | — | $ | (98) | $ | (15) | |||||||||
Total derivatives | $ | 78 | $ | 14 | $ | (81) | $ | (19) |
Effect of Derivative Instruments |
Amount of gain (loss) recognized in OCI 1
|
Amount of gain (loss) recognized in income 2
|
Income Statement Classification | ||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||
In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | |||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||
Fair value hedges: | |||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | (25) | $ | 24 |
Interest expense and amortization of debt discount 3
|
||||||||
Excluded components 4
|
2 | 10 | — | — | Interest expense and amortization of debt discount | ||||||||||||
Cash flow hedges: | |||||||||||||||||
Interest rate contracts | (39) | — | (7) | (1) | Interest expense and amortization of debt discount | ||||||||||||
Foreign currency contracts | 10 | (9) | (15) | 8 | Cost of sales | ||||||||||||
Commodity contracts | 143 | (23) | 32 | (32) | Cost of sales | ||||||||||||
Net foreign investment hedges: | |||||||||||||||||
Foreign currency contracts | 33 | (3) | — | — | |||||||||||||
Excluded components 4
|
20 | 27 | 5 | 18 | Sundry income (expense) - net | ||||||||||||
Total derivatives designated as hedging instruments | $ | 169 | $ | 2 | $ | (10) | $ | 17 | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | (5) | $ | (10) | Interest expense and amortization of debt discount | ||||||||
Foreign currency contracts | — | — | (202) | (15) | Sundry income (expense) - net | ||||||||||||
Commodity contracts | — | — | (47) | 10 | Cost of sales | ||||||||||||
Total derivatives not designated as
hedging instruments |
$ | — | $ | — | $ | (254) | $ | (15) | |||||||||
Total derivatives | $ | 169 | $ | 2 | $ | (264) | $ | 2 |
Basis of Fair Value Measurements on a Recurring Basis | Sep 30, 2021 | Dec 31, 2020 | ||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Items
(Level 1) |
Significant Other Observable Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3) |
Total |
Quoted Prices in Active Markets for Identical Items
(Level 1) |
Significant Other Observable Inputs
(Level 2) |
Total | ||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Assets at fair value: | ||||||||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||||||||
Held-to-maturity securities 1
|
$ | — | $ | 921 | $ | — | $ | 921 | $ | — | $ | 980 | $ | 980 | ||||||||||||
Money market funds | — | 498 | — | 498 | — | 484 | 484 | |||||||||||||||||||
Marketable securities 2
|
— | 141 | — | 141 | — | 45 | 45 | |||||||||||||||||||
Equity securities 3
|
25 | — | — | 25 | 40 | — | 40 | |||||||||||||||||||
Debt securities: 3
|
||||||||||||||||||||||||||
Government debt 4
|
— | 681 | — | 681 | — | 698 | 698 | |||||||||||||||||||
Corporate bonds | 39 | 1,213 | — | 1,252 | 28 | 908 | 936 | |||||||||||||||||||
Derivatives relating to: 5
|
||||||||||||||||||||||||||
Interest rates | — | 182 | — | 182 | — | 44 | 44 | |||||||||||||||||||
Foreign currency | — | 138 | — | 138 | — | 113 | 113 | |||||||||||||||||||
Commodities | 20 | 527 | — | 547 | 8 | 173 | 181 | |||||||||||||||||||
Total assets at fair value | $ | 84 | $ | 4,301 | $ | — | $ | 4,385 | $ | 76 | $ | 3,445 | $ | 3,521 | ||||||||||||
Liabilities at fair value: | ||||||||||||||||||||||||||
Long-term debt including debt due within one year 6
|
$ | — | $ | 16,970 | $ | — | $ | 16,970 | $ | — | $ | 20,604 | $ | 20,604 | ||||||||||||
Guarantee liability 7
|
— | — | 225 | 225 | — | — | — | |||||||||||||||||||
Derivatives relating to: 5
|
||||||||||||||||||||||||||
Interest rates | — | 348 | — | 348 | — | 185 | 185 | |||||||||||||||||||
Foreign currency | — | 167 | — | 167 | — | 128 | 128 | |||||||||||||||||||
Commodities | 47 | 429 | — | 476 | 7 | 201 | 208 | |||||||||||||||||||
Total liabilities at fair value | $ | 47 | $ | 17,914 | $ | 225 | $ | 18,186 | $ | 7 | $ | 21,118 | $ | 21,125 |
Carrying Amounts of Assets Related to Nonconsolidated VIEs | Sep 30, 2021 | Dec 31, 2020 | |||||||||
In millions | Description of asset | ||||||||||
Silicon joint ventures |
Equity method investments 1
|
$ | 113 | $ | 107 |
TDCC Cash Dividends Declared and Paid | Three Months Ended | Nine Months Ended | ||||||||||||
Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | |||||||||||
In millions | ||||||||||||||
Cash dividends declared and paid | $ | 919 | $ | 513 | $ | 2,361 | $ | 1,685 |
Segment Information | Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Materials & Coatings | Corp. | Total | ||||||||||||
In millions | |||||||||||||||||
Three months ended Sep 30, 2021 | |||||||||||||||||
Net sales | $ | 7,736 | $ | 4,481 | $ | 2,526 | $ | 94 | $ | 14,837 | |||||||
Equity in earnings of nonconsolidated affiliates | $ | 124 | $ | 122 | $ | 3 | $ | — | $ | 249 | |||||||
Dow Inc. Operating EBIT 1
|
$ | 1,954 | $ | 713 | $ | 284 | $ | (65) | $ | 2,886 | |||||||
Three months ended Sep 30, 2020 | |||||||||||||||||
Net sales | $ | 4,565 | $ | 3,058 | $ | 2,002 | $ | 87 | $ | 9,712 | |||||||
Equity in earnings (losses) of nonconsolidated affiliates | $ | 71 | $ | (13) | $ | 1 | $ | 1 | $ | 60 | |||||||
Dow Inc. Operating EBIT 1
|
$ | 647 | $ | 104 | $ | 75 | $ | (65) | $ | 761 | |||||||
Nine months ended Sep 30, 2021 | |||||||||||||||||
Net sales | $ | 20,939 | $ | 12,303 | $ | 7,114 | $ | 248 | $ | 40,604 | |||||||
Equity in earnings of nonconsolidated affiliates | $ | 360 | $ | 381 | $ | 5 | $ | 5 | $ | 751 | |||||||
Dow Inc. Operating EBIT 1
|
$ | 5,196 | $ | 1,687 | $ | 571 | $ | (186) | $ | 7,268 | |||||||
Nine months ended Sep 30, 2020 | |||||||||||||||||
Net sales | $ | 13,175 | $ | 8,520 | $ | 5,922 | $ | 219 | $ | 27,836 | |||||||
Equity in earnings (losses) of nonconsolidated affiliates | $ | 96 | $ | (202) | $ | 4 | $ | (22) | $ | (124) | |||||||
Dow Inc. Operating EBIT 1
|
$ | 1,545 | $ | 59 | $ | 264 | $ | (207) | $ | 1,661 |
Reconciliation of "Net income (loss)" to Operating EBIT | Three Months Ended | Nine Months Ended | ||||||||||||
In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||
Net income (loss) | $ | 1,706 | $ | (1) | $ | 4,644 | $ | 40 | ||||||
+ Provision for income taxes | 542 | 43 | 1,383 | 215 | ||||||||||
Income before income taxes | $ | 2,248 | $ | 42 | $ | 6,027 | $ | 255 | ||||||
- Interest income | 14 | 6 | 35 | 27 | ||||||||||
+ Interest expense and amortization of debt discount | 178 | 202 | 561 | 617 | ||||||||||
- Significant items | (474) | (523) | (715) | (816) | ||||||||||
Operating EBIT | $ | 2,886 | $ | 761 | $ | 7,268 | $ | 1,661 |
Significant Items by Segment | Three Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2021 | ||||||||||||||||||||||||||||||
Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Mat. & Coatings | Corp. | Total | Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Mat. & Coatings | Corp. | Total | |||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Digitalization program costs 1
|
$ | — | $ | — | $ | — | $ | (40) | $ | (40) | $ | — | $ | — | $ | — | $ | (121) | $ | (121) | ||||||||||||
Restructuring, implementation costs and asset related charges - net 2
|
— | — | — | (16) | (16) | (8) | (1) | (10) | (50) | (69) | ||||||||||||||||||||||
Loss on early extinguishment of debt 3
|
— | — | — | (472) | (472) | — | — | — | (574) | (574) | ||||||||||||||||||||||
Litigation related charges, awards and adjustments 4
|
— | 54 | — | — | 54 | — | 54 | — | — | 54 | ||||||||||||||||||||||
Indemnification and other transaction related costs 5
|
— | — | — | — | — | — | — | — | (5) | (5) | ||||||||||||||||||||||
Total | $ | — | $ | 54 | $ | — | $ | (528) | $ | (474) | $ | (8) | $ | 53 | $ | (10) | $ | (750) | $ | (715) |
Significant Items by Segment | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2020 | ||||||||||||||||||||||||||||||
Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Mat. & Coatings | Corp. | Total | Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Mat. & Coatings | Corp. | Total | |||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Integration and separation costs 1
|
$ | — | $ | — | $ | — | $ | (63) | $ | (63) | $ | — | $ | — | $ | — | $ | (174) | $ | (174) | ||||||||||||
Restructuring, implementation costs and asset-related charges, net 2
|
(18) | (22) | (189) | (388) | (617) | (30) | (22) | (189) | (478) | (719) | ||||||||||||||||||||||
Litigation related charges, awards and adjustments 3
|
— | — | — | — | — | 6 | — | — | — | 6 | ||||||||||||||||||||||
Net gain on divestitures 4
|
35 | — | — | 185 | 220 | 35 | — | — | 185 | 220 | ||||||||||||||||||||||
Loss on early extinguishment of debt 5
|
— | — | — | (63) | (63) | — | — | — | (149) | (149) | ||||||||||||||||||||||
Total | $ | 17 | $ | (22) | $ | (189) | $ | (329) | $ | (523) | $ | 11 | $ | (22) | $ | (189) | $ | (616) | $ | (816) |
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
Summary of Sales Results | Three Months Ended | Nine Months Ended | ||||||||||||
In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||
Net sales | $ | 14,837 | $ | 9,712 | $ | 40,604 | $ | 27,836 |
Sales Variances by Operating Segment and Geographic Region | ||||||||||||||||||||||||||||||||
Three Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2021 | |||||||||||||||||||||||||||||||
Local Price & Product Mix | Currency | Volume | Total | Local Price & Product Mix | Currency | Volume | Total | |||||||||||||||||||||||||
Percentage change from prior year | ||||||||||||||||||||||||||||||||
Packaging & Specialty Plastics | 63 | % | 1 | % | 5 | % | 69 | % | 52 | % | 3 | % | 4 | % | 59 | % | ||||||||||||||||
Industrial Intermediates & Infrastructure | 49 | 2 | (4) | 47 | 41 | 3 | — | 44 | ||||||||||||||||||||||||
Performance Materials & Coatings | 23 | 1 | 2 | 26 | 14 | 3 | 3 | 20 | ||||||||||||||||||||||||
Total | 50 | % | 1 | % | 2 | % | 53 | % | 40 | % | 3 | % | 3 | % | 46 | % | ||||||||||||||||
Total, excluding the Hydrocarbons & Energy business | 45 | % | 1 | % | (1) | % | 45 | % | 36 | % | 3 | % | — | % | 39 | % | ||||||||||||||||
U.S. & Canada | 56 | % | — | % | 5 | % | 61 | % | 44 | % | — | % | 2 | % | 46 | % | ||||||||||||||||
EMEAI | 55 | 2 | 3 | 60 | 45 | 6 | 5 | 56 | ||||||||||||||||||||||||
Asia Pacific | 28 | 2 | (6) | 24 | 24 | 3 | — | 27 | ||||||||||||||||||||||||
Latin America | 60 | — | (1) | 59 | 51 | — | — | 51 | ||||||||||||||||||||||||
Total | 50 | % | 1 | % | 2 | % | 53 | % | 40 | % | 3 | % | 3 | % | 46 | % |
Packaging & Specialty Plastics | Three Months Ended | Nine Months Ended | ||||||||||||
In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||
Net sales | $ | 7,736 | $ | 4,565 | $ | 20,939 | $ | 13,175 | ||||||
Operating EBIT | $ | 1,954 | $ | 647 | $ | 5,196 | $ | 1,545 | ||||||
Equity earnings | $ | 124 | $ | 71 | $ | 360 | $ | 96 |
Packaging & Specialty Plastics | Three Months Ended | Nine Months Ended | ||||||
Percentage change from prior year | Sep 30, 2021 | Sep 30, 2021 | ||||||
Change in Net Sales from Prior Period due to: | ||||||||
Local price & product mix | 63 | % | 52 | % | ||||
Currency | 1 | 3 | ||||||
Volume | 5 | 4 | ||||||
Total | 69 | % | 59 | % | ||||
Industrial Intermediates & Infrastructure | Three Months Ended | Nine Months Ended | ||||||||||||
In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||
Net sales | $ | 4,481 | $ | 3,058 | $ | 12,303 | $ | 8,520 | ||||||
Operating EBIT | $ | 713 | $ | 104 | $ | 1,687 | $ | 59 | ||||||
Equity earnings (losses) | $ | 122 | $ | (13) | $ | 381 | $ | (202) |
Industrial Intermediates & Infrastructure | Three Months Ended | Nine Months Ended | ||||||
Percentage change from prior year | Sep 30, 2021 | Sep 30, 2021 | ||||||
Change in Net Sales from Prior Period due to: | ||||||||
Local price & product mix | 49 | % | 41 | % | ||||
Currency | 2 | 3 | ||||||
Volume | (4) | — | ||||||
Total | 47 | % | 44 | % |
Performance Materials & Coatings | Three Months Ended | Nine Months Ended | ||||||||||||
In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||
Net sales | $ | 2,526 | $ | 2,002 | $ | 7,114 | $ | 5,922 | ||||||
Operating EBIT | $ | 284 | $ | 75 | $ | 571 | $ | 264 | ||||||
Equity earnings | $ | 3 | $ | 1 | $ | 5 | $ | 4 |
Performance Materials & Coatings | Three Months Ended | Nine Months Ended | ||||||
Percentage change from prior year | Sep 30, 2021 | Sep 30, 2021 | ||||||
Change in Net Sales from Prior Period due to: | ||||||||
Local price & product mix | 23 | % | 14 | % | ||||
Currency | 1 | 3 | ||||||
Volume | 2 | 3 | ||||||
Total | 26 | % | 20 | % |
Corporate | Three Months Ended | Nine Months Ended | ||||||||||||
In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||
Net sales | $ | 94 | $ | 87 | $ | 248 | $ | 219 | ||||||
Operating EBIT | $ | (65) | $ | (65) | $ | (186) | $ | (207) | ||||||
Equity earnings (losses) | $ | — | $ | 1 | $ | 5 | $ | (22) | ||||||
Cash Flow Summary | Dow Inc. | TDCC | ||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||
Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | |||||||||||
In millions
|
||||||||||||||
Cash provided by (used for): | ||||||||||||||
Operating activities - continuing operations | $ | 4,512 | $ | 4,596 | $ | 4,634 | $ | 4,604 | ||||||
Operating activities - discontinued operations | (78) | — | — | — | ||||||||||
Operating activities | 4,434 | 4,596 | 4,634 | 4,604 | ||||||||||
Investing activities | (1,535) | (616) | (1,535) | (616) | ||||||||||
Financing activities | (4,974) | (1,809) | (5,174) | (1,817) | ||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (57) | 4 | (57) | 4 | ||||||||||
Summary | ||||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | (2,132) | 2,175 | (2,132) | 2,175 | ||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 5,108 | 2,380 | 5,108 | 2,380 | ||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 2,976 | $ | 4,555 | $ | 2,976 | $ | 4,555 | ||||||
Less: Restricted cash and cash equivalents, included in "Other current assets" | 65 | 6 | 65 | 6 | ||||||||||
Cash and cash equivalents at end of period | $ | 2,911 | $ | 4,549 | $ | 2,911 | $ | 4,549 |
Net Working Capital | Dow Inc. | TDCC | ||||||||||||
Sep 30, 2021 | Dec 31, 2020 | Sep 30, 2021 | Dec 31, 2020 | |||||||||||
In millions | ||||||||||||||
Current assets | $ | 20,393 | $ | 19,084 | $ | 20,359 | $ | 18,998 | ||||||
Current liabilities | 12,793 | 11,108 | 12,505 | 10,574 | ||||||||||
Net working capital | $ | 7,600 | $ | 7,976 | $ | 7,854 | $ | 8,424 | ||||||
Current ratio | 1.59:1 | 1.72:1 | 1.63:1 | 1.80:1 |
Working Capital Metrics | Three Months Ended | ||||||||||
Sep 30, 2021 | Jun 30, 2021 | Sep 30, 2020 | |||||||||
Days sales outstanding in trade receivables | 41 | 39 | 43 | ||||||||
Days sales in inventory | 56 | 56 | 63 | ||||||||
Days payables outstanding | 58 | 55 | 58 |
Reconciliation of Free Cash Flow
|
Nine Months Ended | |||||||
Sep 30, 2021 | Sep 30, 2020 | |||||||
In millions
|
||||||||
Cash provided by operating activities - continuing operations (GAAP) | $ | 4,512 | $ | 4,596 | ||||
Capital expenditures | (1,035) | (955) | ||||||
Free cash flow (non-GAAP) 1
|
$ | 3,477 | $ | 3,641 |
Reconciliation of Cash Flow Conversion (Operating EBITDA to Cash Flow from Operations)
|
Nine Months Ended | |||||||
Sep 30, 2021 | Sep 30, 2020 | |||||||
In millions
|
||||||||
Net income (GAAP) | $ | 4,644 | $ | 40 | ||||
+ Provision for income taxes | 1,383 | 215 | ||||||
Income before income taxes | $ | 6,027 | $ | 255 | ||||
- Interest income | 35 | 27 | ||||||
+ Interest expense and amortization of debt discount | 561 | 617 | ||||||
- Significant items ¹ | (715) | (816) | ||||||
Operating EBIT (non-GAAP) | $ | 7,268 | $ | 1,661 | ||||
+ Depreciation and amortization | 2,187 | 2,148 | ||||||
Operating EBITDA (non-GAAP) | $ | 9,455 | $ | 3,809 | ||||
Cash provided by operating activities - continuing operations (GAAP) | $ | 4,512 | $ | 4,596 | ||||
Cash flow conversion (Operating EBITDA to cash flow from operations) (non-GAAP) 2
|
47.7 | % | 120.7 | % |
Total Debt | Dow Inc. | TDCC | ||||||||||||
Sep 30, 2021 | Dec 31, 2020 | Sep 30, 2021 | Dec 31, 2020 | |||||||||||
In millions
|
||||||||||||||
Notes payable | $ | 270 | $ | 156 | $ | 270 | $ | 156 | ||||||
Long-term debt due within one year | 291 | 460 | 291 | 460 | ||||||||||
Long-term debt | 14,027 | 16,491 | 14,027 | 16,491 | ||||||||||
Gross debt | $ | 14,588 | $ | 17,107 | $ | 14,588 | $ | 17,107 | ||||||
- Cash and cash equivalents | 2,911 | 5,104 | 2,911 | 5,104 | ||||||||||
- Marketable securities 1
|
141 | 45 | 141 | 45 | ||||||||||
Net debt | $ | 11,536 | $ | 11,958 | $ | 11,536 | $ | 11,958 | ||||||
Total equity | $ | 17,028 | $ | 13,005 | $ | 17,393 | $ | 13,569 | ||||||
Gross debt as a percent of total capitalization | 46.1 | % | 56.8 | % | 45.6 | % | 55.8 | % | ||||||
Net debt as a percent of total capitalization | 40.4 | % | 47.9 | % | 39.9 | % | 46.8 | % |
Credit Ratings | Long-Term Rating | Short-Term Rating | Outlook | ||||||||
Standard & Poor’s | BBB | A-2 | Stable | ||||||||
Moody’s Investors Service | Baa2 | P-2 | Stable | ||||||||
Fitch Ratings | BBB+ | F2 | Stable |
Dow Inc. Cash Dividends Declared and Paid | |||||||||||
Declaration Date | Record Date | Payment Date | Amount (per share) | ||||||||
February 11, 2021 | February 26, 2021 | March 12, 2021 | $ | 0.70 | |||||||
April 15, 2021 | May 28, 2021 | June 11, 2021 | $ | 0.70 | |||||||
August 12, 2021 | August 31, 2021 | September 10, 2021 | $ | 0.70 | |||||||
October 14, 2021 | November 30, 2021 | December 10, 2021 | $ | 0.70 |
Contractual Obligations at Sep 30, 2021 | Payments Due In | ||||||||||||||||
In millions | 2021 | 2022-2023 | 2024-2025 | 2026 and beyond | Total | ||||||||||||
Long-term debt obligations 1
|
$ | 122 | $ | 536 | $ | 405 | $ | 13,568 | $ | 14,631 | |||||||
Expected cash requirements for interest 2
|
$ | 157 | $ | 1,226 | $ | 1,173 | $ | 7,907 | $ | 10,463 | |||||||
Pension and other postretirement benefits | $ | 71 | $ | 655 | $ | 649 | $ | 7,367 | $ | 8,742 | |||||||
Operating leases 3
|
$ | 140 | $ | 785 | $ | 474 | $ | 744 | $ | 2,143 | |||||||
Asbestos-Related Claim Activity | 2021 | 2020 | ||||||
Claims unresolved at Jan 1 | 9,126 | 11,117 | ||||||
Claims filed | 3,177 | 3,623 | ||||||
Claims settled, dismissed or otherwise resolved | (3,340) | (5,099) | ||||||
Claims unresolved at Sep 30 | 8,963 | 9,641 | ||||||
Claimants with claims against both Union Carbide and Amchem | (2,312) | (3,168) | ||||||
Individual claimants at Sep 30 | 6,651 | 6,473 |
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. CONTROLS AND PROCEDURES |
ITEM 1. LEGAL PROCEEDINGS |
ITEM 1A. RISK FACTORS |
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
Issuer Purchases of Equity Securities | Total number of shares purchased as part of the Company's publicly announced share repurchase program |
Approximate dollar value of shares that may yet be purchased under the Company's publicly announced share repurchase program 1
(In millions)
|
||||||||||||
Period | Total number of shares purchased | Average price paid per share | ||||||||||||
July 2021 | 590,309 | $ | 61.57 | 590,309 | $ | 2,139 | ||||||||
August 2021 | 4,145,582 | $ | 62.42 | 4,145,582 | $ | 1,880 | ||||||||
September 2021 | 1,674,600 | $ | 62.64 | 1,674,600 | $ | 1,775 | ||||||||
Third quarter 2021 | 6,410,491 | $ | 62.40 | 6,410,491 | $ | 1,775 |
ITEM 4. MINE SAFETY DISCLOSURES |
ITEM 5. OTHER INFORMATION |
ITEM 6. EXHIBITS |
EXHIBIT NO. | DESCRIPTION | ||||||||||
4.3 | Dow Inc. agrees to provide the SEC, on request, copies of all other such indentures and instruments that define the rights of holders of long-term debt of Dow Inc. and its consolidated subsidiaries, including The Dow Chemical Company, pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K. | ||||||||||
23 *
|
Ankura Consulting Group, LLC's Consent. | ||||||||||
31.1 *
|
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||||
31.2 *
|
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||||
32.1 *
|
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||||
32.2 *
|
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||||
101.INS | The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | ||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | ||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | ||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | ||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | ||||||||||
104 | Cover Page Interactive Data File. The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
Dow Inc.
The Dow Chemical Company and Subsidiaries
Trademark Listing
|
/s/ RONALD C. EDMONDS | ||
Ronald C. Edmonds
Controller and Vice President of Controllers and Tax (Authorized Signatory and Principal Accounting Officer) |
1 Year Dow Chart |
1 Month Dow Chart |
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