10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________to___________

Commission File Number: 1-1463

Union Carbide Corporation

(Exact name of registrant as specified in its charter)

New York	13-1421730
(State or other jurisdiction of      incorporation or organization)	(I.R.S. Employer Identification No.)

7501 STATE HIGHWAY 185 NORTH, SEADRIFT, TX  77983

(Address of principal executive offices) (Zip Code)

 Registrant's telephone number, including area code:  361-553-2997

Securities registered pursuant to Section 12(b) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

☑ Yes  ☐  No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☑ Yes ☐  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☑	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐ Yes ☑  No

At July 26, 2023, 935.51 shares of common stock were outstanding, all of which were held by the registrant’s parent, The Dow Chemical Company.

The registrant meets the conditions set forth in General Instruction H(1)(a) and (b) for Form 10-Q and is therefore filing this form with a reduced disclosure format.

1

Union Carbide Corporation

QUARTERLY REPORT ON FORM 10-Q

For the quarterly period ended June 30, 2023

TABLE OF CONTENTS

		Page
PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements.	4
	Consolidated Statements of Income.	4
	Consolidated Statements of Comprehensive Income.	5
	Consolidated Balance Sheets.	6
	Consolidated Statements of Cash Flows.	7
	Consolidated Statements of Equity.	8
	Notes to the Consolidated Financial Statements.	9
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations.	15
	Results of Operations.	15
	Other Matters.	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	18
Item 4.	Controls and Procedures.	18
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings.	19
Item 1A.	Risk Factors.	19
Item 4.	Mine Safety Disclosures.	19
Item 6.	Exhibits.	19
SIGNATURES		20

2

Union Carbide Corporation and Subsidiaries

Throughout this Quarterly Report on Form 10-Q, except as otherwise indicated by the context, the terms "Corporation" or "UCC" as used herein mean Union Carbide Corporation and its subsidiaries.

CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS

Certain statements in this report are "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements often address expected future business and financial performance, financial condition, and other matters, and often contain words or phrases such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “opportunity,” “outlook,” “plan,” “project,” “seek,” “should,” “strategy,” “target,” “will,” “will be,” “will continue,” “will likely result,” “would” and similar expressions, and variations or negatives of these words or phrases.

Forward-looking statements are based on current assumptions and expectations of future events that are subject to risks, uncertainties and other factors that are beyond the Corporation’s control, which may cause actual results to differ materially from those projected, anticipated or implied in the forward-looking statements and speak only as of the date the statements were made. These factors include, but are not limited to: sales of UCC's products; UCC's expenses, future revenues and profitability; any global and regional economic impacts of a pandemic or other public health-related risks and events on the Corporation’s business; any sanctions, export restrictions, supply chain disruptions or increased economic uncertainty related to the ongoing conflict between Russia and Ukraine; capital requirements and need for and availability of financing; unexpected barriers in the development of technology, including with respect to UCC’s contemplated capital and operating projects; significant litigation and environmental matters and related contingencies and unexpected expenses; the success of competing technologies that are or may become available; the ability to protect UCC's intellectual property in the United States and abroad; developments related to contemplated restructuring activities and proposed divestitures or acquisitions such as workforce reduction, manufacturing facility and/or asset closure and related exit and disposal activities, and the benefits and costs associated with each of the foregoing; fluctuations in energy and raw material prices; management of process safety and product stewardship; changes in consumer preferences and demand; changes in laws and regulations, political conditions or industry development; global economic and capital markets conditions, such as inflation, market uncertainty, interest and currency exchange rates, and equity and commodity prices; business or supply disruptions; security threats, such as acts of sabotage, terrorism or war, including the ongoing conflict between Russia and Ukraine; weather events and natural disasters; disruptions in the Corporation’s information technology networks and systems; and, since The Dow Chemical Company ("TDCC"), a wholly owned subsidiary of Dow Inc. (together, with TDCC and its consolidated subsidiaries, "Dow"), is the primary customer of UCC, Dow's ability to realize its commitment to carbon neutrality on the contemplated timeframe; the size of the markets for Dow’s products and services and its ability to compete in such markets; Dow's failure to develop and market new products and optimally manage product life cycles; the rate and degree of market acceptance of Dow’s products; and changes in relationships with Dow’s significant customers and suppliers.

Where, in any forward-looking statement, an expectation or belief as to future results or events is expressed, such expectation or belief is based on the current plans and expectations of management and expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. A detailed discussion of principal risks and uncertainties which may cause actual results and events to differ materially from such forward-looking statements is included in the section titled "Risk Factors" contained in Part II, Item 1A of this Quarterly Report on Form 10-Q and in Part I, Item 1A of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2022. These are not the only risks and uncertainties that the Corporation faces. There may be other risks and uncertainties that the Corporation is unable to identify at this time or that it does not currently expect to have a material impact on its business. If any of those risks or uncertainties develops into an actual event, it could have a material adverse effect on the Corporation’s business. The Corporation assumes no obligation to update or revise publicly any forward-looking statements whether because of new information, future events, or otherwise, except as required by securities and other applicable laws.

3

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Union Carbide Corporation and Subsidiaries

Consolidated Statements of Income

	Three Months Ended				Six Months Ended
In millions (Unaudited)	Jun 30, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022
Net trade sales	$	27	$	42	$	64	$	103
Net sales to related companies	1,138		1,426		2,176		2,944
Total net sales	1,165		1,468		2,240		3,047
Cost of sales	925		1,309		1,906		2,524
Research and development expenses	5		7		11		14
Selling, general and administrative expenses	4		2		6		4
Restructuring and asset related charges - net	—		—		14		—
Sundry income (expense) - net	(23)		(14)		(45)		(28)
Interest income	9		2		20		3
Interest expense and amortization of debt discount	4		7		10		14
Income before income taxes	213		131		268		466
Provision for income taxes	46		30		56		110
Net income attributable to Union Carbide Corporation	$	167	$	101	$	212	$	356
Depreciation	$	38	$	41	$	76	$	83
Capital expenditures	$	62	$	29	$	120	$	50

See Notes to the Consolidated Financial Statements.

4

Union Carbide Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

	Three Months Ended				Six Months Ended
In millions (Unaudited)	Jun 30, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022
Net income attributable to Union Carbide Corporation	$	167	$	101	$	212	$	356
Other comprehensive income, net of tax
Cumulative translation adjustments	1		2		2		—
Pension and other postretirement benefit plans	10		19		19		38
Total other comprehensive income	11		21		21		38
Comprehensive income attributable to Union Carbide Corporation	$	178	$	122	$	233	$	394

See Notes to the Consolidated Financial Statements.

5

Union Carbide Corporation and Subsidiaries

Consolidated Balance Sheets

In millions, except share amounts (Unaudited)	Jun 30, 2023		Dec 31, 2022
Assets
Current Assets
Cash and cash equivalents	$	10	$	10
Accounts receivable:
Trade (net of allowance for doubtful receivables 2023: $—; 2022: $—)	28		40
Related companies	895		766
Other	23		24
Income taxes receivable	210		211
Notes receivable from related companies	644		958
Inventories	264		256
Other current assets	38		38
Total current assets	2,112		2,303
Investments
Investments in related companies	237		237
Other investments	16		23
Noncurrent receivables	93		91
Noncurrent receivables from related companies	58		61
Total investments	404		412
Property
Property	7,210		7,104
Less accumulated depreciation	5,989		5,922
Net property	1,221		1,182
Other Assets
Intangible assets (net of accumulated amortization 2023: $102; 2022: $100)	8		9
Operating lease right-of-use assets	109		107
Deferred income tax assets	236		239
Deferred charges and other assets	36		37
Total other assets	389		392
Total Assets	$	4,126	$	4,289
Liabilities and Equity
Current Liabilities
Notes payable to related companies	$	58	$	51
Notes payable - other	4		4
Long-term debt due within one year	4		132
Accounts payable:
Trade	293		284
Related companies	375		411
Other	16		16
Operating lease liabilities - current	22		21
Income taxes payable	71		33
Asbestos-related liabilities - current	85		90
Accrued and other current liabilities	141		145
Total current liabilities	1,069		1,187
Long-Term Debt	260		262
Other Noncurrent Liabilities
Pension and other postretirement benefits - noncurrent	285		298
Asbestos-related liabilities - noncurrent	819		857
Operating lease liabilities - noncurrent	87		87
Other noncurrent obligations	279		254
Total other noncurrent liabilities	1,470		1,496
Stockholder's Equity
Common stock (authorized: 1,000 shares of $0.01 par value each; issued: 935.51 shares)	—		—
Additional paid-in capital	141		141
Retained earnings	2,567		2,605
Accumulated other comprehensive loss	(1,381)		(1,402)
Union Carbide Corporation's stockholder's equity	1,327		1,344
Total Liabilities and Equity	$	4,126	$	4,289

See Notes to the Consolidated Financial Statements.

6

Union Carbide Corporation and Subsidiaries

Consolidated Statements of Cash Flows

	Six Months Ended
In millions (Unaudited)	Jun 30, 2023		Jun 30, 2022
Operating Activities
Net income attributable to Union Carbide Corporation	$	212	$	356
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	88		101
Provision (credit) for deferred income tax	(3)		8
Net gain on sales of property and investments	(1)		—
Restructuring and asset related charges - net	14		—
Net periodic pension benefit cost	19		4
Pension contributions	(1)		(1)
Other, net	(1)		(1)
Changes in assets and liabilities:
Accounts and notes receivable	13		(5)
Related company receivables	185		(18)
Inventories	(8)		(40)
Accounts payable	9		48
Related company payables	(29)		64
Asbestos-related payments	(43)		(39)
Other assets and liabilities	36		93
Cash provided by operating activities	490		570
Investing Activities
Capital expenditures	(120)		(50)
Change in noncurrent receivable from related company	3		1
Proceeds from sales of property	1		—
Proceeds from sales of investments	7		—
Cash used for investing activities	(109)		(49)
Financing Activities
Dividends paid to parent	(250)		(521)
Payments on long-term debt	(131)		(1)
Cash used for financing activities	(381)		(522)
Summary
Decrease in cash and cash equivalents	—		(1)
Cash and cash equivalents at beginning of period	10		11
Cash and cash equivalents at end of period	$	10	$	10

See Notes to the Consolidated Financial Statements.

7

Union Carbide Corporation and Subsidiaries

Consolidated Statements of Equity

	Three Months Ended				Six Months Ended
In millions (Unaudited)	Jun 30, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022
Common Stock
Balance at beginning and end of period	$	—	$	—	$	—	$	—
Additional Paid-in Capital
Balance at beginning and end of period	141		141		141		141
Retained Earnings
Balance at beginning of period	2,515		3,104		2,605		3,074
Net income attributable to Union Carbide Corporation	167		101		212		356
Dividends declared	(115)		(296)		(250)		(521)
Balance at end of period	2,567		2,909		2,567		2,909
Accumulated Other Comprehensive Loss, Net of Tax
Balance at beginning of period	(1,392)		(1,534)		(1,402)		(1,551)
Other comprehensive income	11		21		21		38
Balance at end of period	(1,381)		(1,513)		(1,381)		(1,513)
Union Carbide Corporation's Stockholder's Equity	$	1,327	$	1,537	$	1,327	$	1,537

See Notes to the Consolidated Financial Statements.

8

Union Carbide Corporation and Subsidiaries

(Unaudited)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Table of Contents

Note		Page
1	Consolidated Financial Statements	9
2	Recent Accounting Guidance	10
3	Revenue	10
4	Restructuring and Asset Related Charges - Net	10
5	Inventories	11
6	Supplier Finance Program	11
7	Commitments and Contingencies	11
8	Leases	12
9	Accumulated Other Comprehensive Loss	13
10	Pension and Other Postretirement Benefit Plans	13
11	Fair Value Measurements	14
12	Related Party Transactions	14

NOTE 1 - CONSOLIDATED FINANCIAL STATEMENTS

Basis of Presentation

The unaudited interim consolidated financial statements of Union Carbide Corporation and its subsidiaries (the "Corporation" or "UCC") were prepared in accordance with accounting principles generally accepted in the United States of America and reflect all adjustments (including normal recurring accruals) which, in the opinion of management, are considered necessary for the fair presentation of the results for the periods presented. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2022 ("2022 10-K").

The Corporation is a wholly owned subsidiary of The Dow Chemical Company ("TDCC"). In accordance with the accounting guidance for earnings per share, the presentation of earnings per share is not required in financial statements of wholly owned subsidiaries.

TDCC conducts its worldwide operations through global businesses. The Corporation’s business activities comprise components of TDCC’s global operations rather than stand-alone operations. Because there are no separate reportable business segments for UCC under the accounting guidance related to segment reporting and no detailed business information is provided to a chief operating decision maker regarding the Corporation’s stand-alone operations, the Corporation’s results are reported as a single operating segment.

Intercompany transactions and balances are eliminated in consolidation. Transactions with the Corporation’s parent company, TDCC, and other subsidiaries of TDCC, have been reflected as related company transactions in the consolidated financial statements. See Note 12 for additional information.

9

NOTE 2 - RECENT ACCOUNTING GUIDANCE

Recently Adopted Accounting Guidance

In the first quarter of 2023, the Corporation adopted the interim period disclosure requirements of Accounting Standards Update ("ASU") 2022-04, "Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations." The ASU, issued in September 2022, requires disclosures intended to enhance the transparency of supplier finance programs. Specifically, the amendments require buyers in a supplier finance program to disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period and potential magnitude. The amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for disclosure of rollforward information, which is required to be disclosed annually and is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The amendments should be applied retrospectively to each period in which a balance sheet is presented, except for disclosure of rollforward information, which should be applied prospectively. The Corporation expects to early adopt the annual requirement to disclose rollforward information prospectively beginning in the 2023 annual financial statements. See Note 6 for disclosures related to the Corporation's supplier finance program.

NOTE 3 - REVENUE

Substantially all of the Corporation's revenue is generated by sales of products to TDCC. Products are sold to and purchased from TDCC at prices determined in accordance with the terms of an agreement between UCC and TDCC. The Corporation sells its products to TDCC to simplify the customer interface process.

The Corporation’s contract liabilities include payments received in advance of performance under long-term contracts for product sales and royalties with remaining contract terms that range up to 17 years. Amounts are recognized in revenue when the performance obligations for the contract are met. The Corporation has rights to additional consideration when product is delivered to the customer. The balance of contract liabilities was $32 million at June 30, 2023 ($33 million at December 31, 2022), of which $2 million ($2 million at December 31, 2022) was included in "Accrued and other current liabilities" and $30 million ($31 million at December 31, 2022) was included in "Other noncurrent obligations" in the consolidated balance sheets.

The Corporation disaggregates its revenue from contracts with customers by type of customer (net sales to related companies and net sales to trade customers) as presented in the consolidated statements of income and believes this disaggregation best depicts the nature, amount, timing and uncertainty of its revenue and cash flows. Substantially all of the product sales are made to the Corporation's parent company, TDCC, and there are no unique economic factors that affect revenue recognition and cash flows associated with these product sales.

NOTE 4 - RESTRUCTURING AND ASSET RELATED CHARGES - NET

2023 Restructuring Program

In the first quarter of 2023, the Corporation initiated restructuring actions to achieve its structural cost improvement initiatives in response to the continued economic impact from the global recessionary environment and to enhance its agility and long-term competitiveness across the economic cycle. The program includes workforce cost reductions and actions to rationalize the Corporation's manufacturing assets, which includes asset write-down and write-off charges. As a result of these actions, the Corporation recorded pretax restructuring charges of $14 million, included in "Restructuring and asset related charges - net" in the consolidated statements of income. The charges consisted of severance and related benefit costs of $12 million and asset write-downs and write-offs of $2 million. These actions are expected to be substantially complete by the end of 2024. The Corporation paid $2 million for severance and related benefit costs through June 30, 2023.

At June 30, 2023, a liability for severance and related benefit costs of $8 million was included in "Accrued and other current liabilities" and $2 million was included in "Other noncurrent obligations" in the consolidated balance sheets.

10

NOTE 5 - INVENTORIES

The following table provides a breakdown of inventories:

Inventories	Jun 30, 2023		Dec 31, 2022
In millions
Finished goods	$	205	$	218
Work in process	29		37
Raw materials	67		76
Supplies	95		87
Total	$	396	$	418
Adjustment of inventories to the LIFO basis	(132)		(162)
Total inventories	$	264	$	256

NOTE 6 - SUPPLIER FINANCE PROGRAM

The Corporation is a party to a supply chain financing (“SCF”) program, facilitated by TDCC, which can be used in the ordinary course of business to extend payment terms with the Corporation's vendors. Under the terms of this program, a vendor can voluntarily enter into an agreement with a participating financial intermediary to sell its receivables due from the Corporation. The vendor receives payment from the financial intermediary, and the Corporation pays the financial intermediary on the terms originally negotiated with the vendor, which generally range from 90 to 120 days. The vendor negotiates the terms of the agreements directly with the financial intermediary and the Corporation is not a party to that agreement. The financial intermediary may allow the participating vendor to utilize TDCC's creditworthiness in establishing credit spreads and associated costs, which may provide the vendor with more favorable terms than they would be able to secure on their own. Neither TDCC nor the Corporation provide guarantees related to the SCF program. At June 30, 2023, outstanding obligations confirmed as valid under the SCF program were $30 million ($29 million at December 31, 2022), included in “Accounts payable – Trade” in the consolidated balance sheets.

NOTE 7 - COMMITMENTS AND CONTINGENCIES

A summary of the Corporation's commitments and contingencies can be found in Note 13 to the Consolidated Financial Statements included in the 2022 10-K, which is incorporated by reference herein.

Environmental Matters

Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. At June 30, 2023, the Corporation had accrued obligations of $202 million for probable environmental remediation and restoration costs ($183 million at December 31, 2022), including $39 million for the remediation of Superfund sites ($36 million at December 31, 2022). This is management’s best estimate of the costs for remediation and restoration with respect to environmental matters for which the Corporation has accrued liabilities, although it is reasonably possible that the ultimate cost with respect to these particular matters could range up to approximately two times that amount. Consequently, it is reasonably possible that environmental remediation and restoration costs in excess of amounts accrued could have a material impact on the Corporation's results of operations, financial condition and cash flows. It is the opinion of the Corporation’s management that the possibility is remote that costs in excess of the range disclosed will have a material impact on the Corporation’s results of operations, financial condition and cash flows. Inherent uncertainties exist in these estimates primarily due to unknown environmental conditions, changing governmental regulations and legal standards regarding liability, and emerging remediation technologies for handling site remediation and restoration. As new or additional information becomes available and/or certain spending trends become known, management will evaluate such information in determination of the current estimate of the environmental liability.

During the first quarter of 2022, the Corporation recorded a pretax charge of $37 million, included in "Cost of sales" in the consolidated statements of income, related to environmental remediation at a number of current and historical locations. The charge primarily resulted from updated remediation estimates and scope changes on existing matters.

11

Litigation

Asbestos-Related Matters

Each quarter, the Corporation reviews asbestos-related claims filed, settled and dismissed, as well as average settlement and resolution costs by disease category. The Corporation also considers additional quantitative and qualitative factors such as the nature of pending claims, trial experience of the Corporation and other asbestos defendants, current spending for defense and processing costs, significant appellate rulings and legislative developments, trends in the tort system, and their respective effects on expected future resolution costs. UCC management considers these factors in conjunction with the most recent actuarial study and determines whether a change in the estimate is warranted. Based on the Corporation's review of 2023 activity, it was determined that no adjustment to the accrual was required at June 30, 2023.

The Corporation’s total asbestos-related liability for pending and future claims and defense and processing costs was $904 million at June 30, 2023 ($947 million at December 31, 2022), and was included in “Asbestos-related liabilities - current” and “Asbestos-related liabilities - noncurrent” in the consolidated balance sheets. At June 30, 2023, approximately 26 percent of the recorded claim liability related to pending claims and approximately 74 percent related to future claims.

NOTE 8 - LEASES

For additional information on the Corporation's leases, see Note 14 to the Consolidated Financial Statements included in the 2022 10-K.

The components of lease cost for operating and finance leases for the three and six months ended June 30, 2023 and 2022 were as follows:

Lease Cost	Three Months Ended				Six Months Ended
In millions	Jun 30, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022
Operating lease cost	$	7	$	6	$	13	$	12
Short-term lease cost	11		8		21		16
Variable lease cost	5		5		12		9
Amortization of right-of-use assets - finance	1		—		2		1
Total lease cost	$	24	$	19	$	48	$	38

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NOTE 9 - ACCUMULATED OTHER COMPREHENSIVE LOSS

The changes in the balances for each component of accumulated other comprehensive loss ("AOCL") for the three and six months ended June 30, 2023 and 2022 were as follows:

Accumulated Other Comprehensive Loss	Three Months Ended				Six Months Ended
In millions	Jun 30, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022
Cumulative Translation Adjustment
Beginning balance	$	(53)	$	(55)	$	(54)	$	(53)
Unrealized gains (losses) on foreign currency translation	1		2		2		—
Ending balance	$	(52)	$	(53)	$	(52)	$	(53)
Pension and Other Postretirement Benefits
Beginning balance	$	(1,339)	$	(1,479)	$	(1,348)	$	(1,498)
Amortization of net loss and prior service credit reclassified from AOCL to net income 1	13		24		25		49
Tax expense (benefit) 2	(3)		(5)		(6)		(11)
Net loss and prior service credit reclassified from AOCL to net income	10		19		19		38
Ending balance	$	(1,329)	$	(1,460)	$	(1,329)	$	(1,460)
Total AOCL ending balance	$	(1,381)	$	(1,513)	$	(1,381)	$	(1,513)

1.These AOCL components are included in the computation of net periodic benefit cost (credit) of the Corporation's defined benefit pension and other postretirement benefit plans. See Note 10 for additional information.

2.Reclassified to "Provision for income taxes."

NOTE 10 - PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS

A summary of the Corporation's pension and other postretirement benefit plans can be found in Note 16 to the Consolidated Financial Statements included in the 2022 10-K. The following table provides the components of the Corporation's net periodic benefit cost (credit) for all significant plans:

Net Periodic Benefit Cost (Credit) for All Significant Plans	Three Months Ended				Six Months Ended
In millions	Jun 30, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022
Defined Benefit Pension Plans
Service cost	$	8	$	9	$	17	$	18
Interest cost	37		23		74		46
Expected return on plan assets	(52)		(56)		(104)		(113)
Amortization of prior service credit	—		(1)		—		(1)
Amortization of net loss	16		27		32		54
Net periodic benefit cost	$	9	$	2	$	19	$	4
Other Postretirement Benefit Plan
Interest cost	$	1	$	1	$	3	$	2
Amortization of net gain	(3)		(2)		(7)		(4)
Net periodic benefit credit	$	(2)	$	(1)	$	(4)	$	(2)

Net periodic benefit cost (credit), other than the service cost component, is included in "Sundry income (expense) - net" in the consolidated statements of income.

13

NOTE 11 - FAIR VALUE MEASUREMENTS

The Corporation's financial instruments are classified as Level 2 measurements. For assets and liabilities classified as Level 2 measurements, where the security is frequently traded in less active markets, fair value is based on the closing price at the end of the period; where the security is less frequently traded, fair value is based on the price a dealer would pay for the security or similar securities, adjusted for any terms specific to that asset or liability, or by using observable market data points of similar, more liquid securities to imply the price. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance and quality checks.

The following table summarizes the fair value of the Corporation's financial instruments at June 30, 2023 and December 31, 2022:

Fair Value of Financial Instruments	Jun 30, 2023								Dec 31, 2022
In millions	Cost		Gain		Loss		Fair Value		Cost		Gain		Loss		Fair Value
Cash equivalents 1	$	10	$	—	$	—	$	10	$	10	$	—	$	—	$	10
Long-term debt including debt due within one year	$	(264)	$	—	$	(29)	$	(293)	$	(394)	$	—	$	(29)	$	(423)

1.Money market fund is included in "Cash and cash equivalents" in the consolidated balance sheets and held at amortized cost, which approximates fair value.

Cost approximates fair value for all other financial instruments.

Fair Value Measurements on a Nonrecurring Basis

As part of the 2023 Restructuring Program, the Corporation rationalized its manufacturing assets to achieve its structural cost improvement initiatives. In the first quarter of 2023, the manufacturing assets associated with this plan, classified as Level 3 measurements and valued using unobservable inputs, were written down to zero and the Corporation recorded an impairment charge of $2 million, which was included in "Restructuring and asset related charges - net" in the consolidated statements of income.

NOTE 12 - RELATED PARTY TRANSACTIONS

A summary of the Corporation's related party transactions can be found in Note 18 to the Consolidated Financial Statements included in the 2022 10-K.

Product and Services Agreements

The following table summarizes UCC’s transactions with TDCC and a TDCC subsidiary related to product and services agreements for the three and six months ended June 30, 2023 and 2022:

Product and Services Agreements Transactions	Three Months Ended				Six Months Ended
	Jun 30, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022		Income Statement Classification
In millions
TDCC Subsidiary:
Commodity and raw materials purchases 1	$	262	$	563	$	581	$	1,068	Cost of sales
Commission expense	$	5	$	5	$	10	$	10	Sundry income (expense) - net
TDCC:
General administrative and overhead type services and service fee	$	17	$	16	$	34	$	32	Sundry income (expense) - net
Activity-based costs 2	$	25	$	22	$	51	$	42	Cost of sales

1.Period-end balances on hand are included in inventory. The decrease in purchase costs was primarily due to lower feedstock and energy costs and lower production.

2.The increase in activity-based costs was primarily due to labor expense for engineering related to capital investment activity on the U.S. Gulf Coast.

14

The following table summarizes cash dividends declared and paid to TDCC for the three and six months ended June 30, 2023 and 2022:

Cash Dividends Declared and Paid	Three Months Ended				Six Months Ended
	Jun 30, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022
In millions
Cash dividends declared and paid	$	115	$	296	$	250	$	521

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Pursuant to General Instruction H(1)(a) and (b) for Form 10-Q "Omission of Information by Certain Wholly-Owned Subsidiaries," the Corporation is filing this Form 10-Q with a reduced disclosure format.

References to "TDCC" refer to The Dow Chemical Company and its consolidated subsidiaries, except as otherwise indicated by the context. Union Carbide Corporation (the "Corporation" or "UCC") has been a wholly owned subsidiary of TDCC since 2001. TDCC has been a wholly owned subsidiary of Dow Inc. since 2019.

TDCC conducts its worldwide operations through global businesses. UCC's business activities comprise components of TDCC’s global businesses rather than stand-alone operations. Because there are no separate reportable business segments for UCC and no detailed business information is provided to a chief operating decision maker regarding the Corporation’s stand-alone operations, the Corporation’s results are reported as a single operating segment.

Statement on the Incident at TDCC's Site in Plaquemine, Louisiana

On July 14, 2023, an incident occurred that included an explosion and subsequent fire at TDCC's Louisiana Operations Glycol-2 unit in Plaquemine, Louisiana. This site provides raw materials for the Corporation's U.S. Gulf Coast operations and, therefore, any resulting raw material disruptions may negatively impact UCC's operations in the near-term. Management at TDCC and UCC are currently evaluating the extent and duration of the operational impact to the Corporation.

RESULTS OF OPERATIONS

Net Sales

Total net sales were $2,240 million for the first six months of 2023 compared with $3,047 million for the first six months of 2022, a decrease of 26 percent. Net sales to related companies, principally to TDCC, were $2,176 million for the first six months of 2023 compared with $2,944 million for the first six months of 2022, a decrease of 26 percent. Selling prices to TDCC are determined in accordance with the terms of an agreement between UCC and TDCC.

Average selling price for the first six months of 2023 decreased 18 percent compared with the first six months of 2022. Price decreased in almost all product lines in response to lower raw material and feedstock costs. Volume for the first six months of 2023 decreased 8 percent compared with the first six months of 2022, with decreases across most product lines. Volume decreases were primarily in glycol ethers, surfactants, oxo alcohols and vinyl acetate monomers, which were negatively impacted by various factors, including reduced demand, internal and external raw material supply limitations and planned maintenance turnaround activities.

Cost of Sales

Cost of sales was $1,906 million for the first six months of 2023 compared with $2,524 million for the first six months of 2022, a decrease of 24 percent. The decrease in cost of sales was driven primarily by lower raw material, feedstock and energy costs on lower volume. Cost of sales as a percentage of net sales was 85.1 percent for the first six months of 2023 compared with 82.8 percent for the first six months of 2022.

Restructuring and Asset Related Charges - Net

In the first quarter of 2023, the Corporation initiated restructuring actions to achieve its structural cost improvement initiatives in response to the continued economic impact from the global recessionary environment and to enhance its agility and long-term competitiveness across the economic cycle. The program includes workforce cost reductions and actions to rationalize the Corporation's manufacturing assets, which include asset write-down and

15

write-off charges. As a result of these actions, the Corporation recorded pretax restructuring charges of $14 million, included in "Restructuring and asset related charges - net" in the consolidated statements of income. See Note 4 to the Consolidated Financial Statements for additional information about the Corporation's restructuring activities and related charges.

The Corporation 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 Corporation 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.

Sundry Income (Expense) – Net

Sundry income (expense) – net includes a variety of income and expense items such as charges for management services provided by TDCC, non-operating pension and other postretirement benefit plan credits or costs, commissions, gains and losses on sales of investments and assets, losses on early extinguishment of debt and gains and losses on foreign currency exchange.

Sundry income (expense) – net in the first six months of 2023 was expense of $45 million compared with $28 million in the first six months of 2022. The increase was primarily the result of lower net non-operating pension and other postretirement benefit plan credits resulting from higher interest cost and lower expected return on assets, partially offset by lower net actuarial loss amortization related to the plans. See Note 10 to the Consolidated Financial Statements for additional information about the Corporation's pension and other postretirement benefit plans.

Interest Income

Interest income was $20 million for the first six months of 2023 compared with $3 million for the first six months of 2022. The increase in interest income primarily resulted from the significant increase in interest rates since the first quarter of 2022.

Interest Expense and Amortization of Debt Discount

Interest expense and amortization of debt discount was $10 million in the first six months of 2023 compared with $14 million in the first six months of 2022, reflecting reduced interest expense resulting from the maturity and payment of long-term debt of $129 million in April 2023.

Provision for Income Taxes

The Corporation is subject primarily to U.S. federal and state taxes. For the first six months of 2023, the Corporation reported a tax provision of $56 million, which resulted in an effective tax rate of 20.9 percent compared with $110 million for the first six months of 2022, which resulted in an effective tax rate of 23.6 percent. The tax rate for the first six months of 2023 was favorably impacted by interest accrued on tax receivables.

Net Income Attributable to UCC

The Corporation reported net income of $212 million for the first six months of 2023 compared with $356 million for the first six months of 2022.

Capital Expenditures

Capital expenditures in the first six months of 2023 were $120 million compared with $50 million in the first six months of 2022, as the Corporation increased investment in production assets and environmental protection projects, primarily on the U.S. Gulf Coast.

OTHER MATTERS

Critical Accounting Estimates

The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, assumptions and estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. Note 1 to the Consolidated Financial Statements in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2022 ("2022 10-K") describes the significant accounting policies and methods used in the preparation

16

of the consolidated financial statements. The Corporation’s critical accounting policies that are impacted by judgments, assumptions and estimates are described in Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Corporation’s 2022 10-K. Since December 31, 2022, there have been no material changes in the Corporation’s accounting policies that are impacted by judgments, assumptions and estimates.

Asbestos-Related Matters

The Corporation is and has been involved in a large number of asbestos-related suits filed primarily in state courts during the past four decades. These suits principally allege personal injury resulting from exposure to asbestos‑containing products and frequently seek both actual and punitive damages. The alleged claims primarily relate to products that UCC sold in the past, alleged exposure to asbestos-containing products located on UCC’s premises, and UCC’s responsibility for asbestos suits filed against a former UCC subsidiary, Amchem Products, Inc. ("Amchem"). In many cases, plaintiffs are unable to demonstrate that they have suffered any compensable loss as a result of such exposure, or that injuries incurred in fact resulted from exposure to UCC’s products.

The table below provides information regarding asbestos-related claims pending against the Corporation and Amchem based on criteria developed by UCC and its external consultants:

Asbestos-Related Claim Activity	2023	2022
Claims unresolved at Jan 1	6,873	8,747
Claims filed	1,911	2,388
Claims settled, dismissed or otherwise resolved	(1,622)	(2,275)
Claims unresolved at Jun 30	7,162	8,860
Claimants with claims against both UCC and Amchem	(1,457)	(2,106)
Individual claimants at Jun 30	5,705	6,754

Plaintiffs' lawyers often sue numerous defendants in individual lawsuits or on behalf of numerous claimants. As a result, the damages alleged are not expressly identified as to UCC, Amchem or any other particular defendant, even when specific damages are alleged with respect to a specific disease or injury. For these reasons and based upon the Corporation's litigation and settlement experience, the Corporation does not consider the damages alleged against it and Amchem to be a meaningful factor in its determination of any potential asbestos-related liability.

For additional information, see Asbestos-Related Matters in Note 7 to the Consolidated Financial Statements; Part II, Item 1. Legal Proceedings; and Note 13 to the Consolidated Financial Statements included in the 2022 10-K.

Debt Covenants and Default Provisions

The Corporation’s outstanding public debt has been issued under indentures which contain, among other provisions, covenants that the Corporation must comply with while the underlying notes are outstanding. Such covenants are typically based on the Corporation’s size and financial position and include, subject to the exceptions and qualifications contained in the indentures, obligations not to (i) allow liens on principal U.S. manufacturing facilities, (ii) enter into sale and lease-back transactions with respect to principal U.S. manufacturing facilities, or (iii) merge into or consolidate with any other entity or sell or convey all or substantially all of its assets. Failure of the Corporation to comply with any of these covenants could, after the passage of any applicable grace period, result in a default under the applicable indenture which would allow the note holders to accelerate the due date of the outstanding principal and accrued interest on the subject notes. Management believes the Corporation was in compliance with the covenants referred to above at June 30, 2023.

Dividends

On a quarterly basis, the Corporation's Board of Directors ("the Board") reviews and determines if there will be a dividend distribution to its parent company and sole shareholder, TDCC. The Board takes into consideration the level of earnings and cash flows, among other factors, in determining the amount of the dividend distribution. For the first six months of 2023, the Corporation declared and paid cash dividends of $250 million to TDCC ($521 million for the first six months of 2022). On July 24, 2023, the Board approved a dividend to TDCC of $144 million, payable on or before September 29, 2023.

17

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Omitted pursuant to General Instruction H of Form 10-Q.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this Quarterly Report on Form 10-Q, the Corporation carried out an evaluation, under the supervision and with the participation of the Corporation's Disclosure Committee and the Corporation's management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of the Corporation's disclosure controls and procedures pursuant to paragraph (b) of Exchange Act Rules 13a-15 and 15d-15. Based upon that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the Corporation's disclosure controls and procedures were effective.

Changes in Internal Control Over Financial Reporting

There were no changes in the Corporation's internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 and 15d-15 that was conducted during the quarter ended June 30, 2023, that have materially affected, or are reasonably likely to materially affect, the Corporation's internal control over financial reporting.

18

Union Carbide Corporation and Subsidiaries

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Asbestos-Related Matters

No material developments in asbestos-related matters occurred in the first six months of 2023. For a current status of asbestos-related matters, see Note 7 to the Consolidated Financial Statements.

ITEM 1A. RISK FACTORS

Since December 31, 2022, there have been no material changes to the Corporation's Risk Factors.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 6. EXHIBITS

EXHIBIT NO.	DESCRIPTION
4.2	The Corporation will furnish to the Commission upon request any other debt instrument referred to in 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.

* Filed herewith

19

 Union Carbide Corporation and Subsidiaries

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

UNION CARBIDE CORPORATION

Date: July 26, 2023

/s/ RONALD C. EDMONDS

Ronald C. Edmonds
Controller and Vice President
of Controllers and Tax
The Dow Chemical Company
Authorized Representative of
Union Carbide Corporation

/s/ IGNACIO MOLINA

Ignacio Molina
Vice President, Treasurer and
Chief Financial Officer

20

EX-23

Ankura Consulting Group, LLC's Consent EXHIBIT 23

Union Carbide Corporation:

Ankura Consulting Group, LLC ("Ankura") hereby consents to the use of Ankura's name and the reference to Ankura's reports appearing in this Quarterly Report on Form 10-Q of Union Carbide Corporation for the quarter ended June 30, 2023.

Date: July 26, 2023

/s/ AMY BROCKMAN

Amy Brockman
Senior Managing Director
Ankura Consulting Group, LLC

21

EX-31.1

Union Carbide Corporation and Subsidiaries EXHIBIT 31.1

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Fernando Signorini, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Union Carbide Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 26, 2023

/s/ FERNANDO SIGNORINI

Fernando Signorini
President and Chief Executive Officer

22

EX-31.2

Union Carbide Corporation and Subsidiaries EXHIBIT 31.2

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Ignacio Molina, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Union Carbide Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 26, 2023

/s/ IGNACIO MOLINA

Ignacio Molina
Vice President, Treasurer and
Chief Financial Officer

23

EX-32.1

Union Carbide Corporation and Subsidiaries EXHIBIT 32.1

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

I, Fernando Signorini, President and Chief Executive Officer of Union Carbide Corporation (the "Corporation"), certify that:

1.The Quarterly Report on Form 10-Q of the Corporation for the quarter ended June 30, 2023 as filed with the Securities and Exchange Commission (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

Date: July 26, 2023

/s/ FERNANDO SIGNORINI

Fernando Signorini
President and Chief Executive Officer

24

EX-32.2

Union Carbide Corporation and Subsidiaries EXHIBIT 32.2

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

I, Ignacio Molina, Vice President, Treasurer and Chief Financial Officer of Union Carbide Corporation (the "Corporation"), certify that:

1.The Quarterly Report on Form 10-Q of the Corporation for the quarter ended June 30, 2023 as filed with the Securities and Exchange Commission (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

Date: July 26, 2023

/s/ IGNACIO MOLINA

Ignacio Molina
Vice President, Treasurer and
Chief Financial Officer

25

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Cover Page - shares	6 Months Ended
	Jun. 30, 2023	Jul. 26, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
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Entity File Number	1-1463
Entity Registrant Name	Union Carbide Corporation
Entity Incorporation, State or Country Code	NY
Entity Tax Identification Number	13-1421730
Entity Address, Address Line One	7501 STATE HIGHWAY 185 NORTH
Entity Address, City or Town	SEADRIFT
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77983
City Area Code	361
Local Phone Number	553-2997
Entity Current Reporting Status	Yes
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Entity Common Stock, Shares Outstanding		935.51
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Current Fiscal Year End Date	--12-31
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Document Fiscal Period Focus	Q2
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Consolidated Statements of Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Revenue from Contract with Customer, Including Assessed Tax	$ 27	$ 42	$ 64	$ 103
Net sales to related companies	1,138	1,426	2,176	2,944
Net trade sales	1,165	1,468	2,240	3,047
Cost of sales	925	1,309	1,906	2,524
Research and development expenses	5	7	11	14
Selling, general and administrative expenses	4	2	6	4
Restructuring and asset related charges - net	0	0	14	0
Sundry income (expense) - net	(23)	(14)	(45)	(28)
Interest Income, Other	9	2	20	3
Interest expense and amortization of debt discount	4	7	10	14
Income before income taxes	213	131	268	466
Provision for income taxes	46	30	56	110
Net Income Attributable to Union Carbide Corporation	$ 167	$ 101	$ 212	$ 356

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Consolidated Statements of Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Supplemental Income Statement Elements [Abstract]
Depreciation	$ 38	$ 41	$ 76	$ 83
Capital expenditures	$ 62	$ 29	$ 120	$ 50

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Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income attributable to Union Carbide Corporation	$ 167	$ 101	$ 212	$ 356
Cumulative translation adjustments	1	2	2	0
Pension and other postretirement benefit plans	10	19	19	38
Total other comprehensive income	11	21	21	38
Comprehensive income attributable to Union Carbide Corporation	$ 178	$ 122	$ 233	$ 394

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Cash and Cash Equivalents, at Carrying Value	$ 10	$ 10
Trade (net of allowance for doubtful receivables 2020: $-; 2019: $-)	28	40
Accounts Receivable from Related Companies	895	766
Other	23	24
Income taxes receivable	210	211
Notes receivable from related companies	644	958
Inventories	264	256
Other current assets	38	38
Total current assets	2,112	2,303
Investments in related companies	237	237
Other investments	16	23
Noncurrent receivables	93	91
Noncurrent receivables from related companies	58	61
Total investments	404	412
Property	7,210	7,104
Less accumulated depreciation	5,989	5,922
Net property	1,221	1,182
Intangible assets (net of accumulated amortization 2020: $92; 2019: $90)	8	9
Operating lease right-of-use assets	109	107
Deferred Tax Assets, Deferred Income	236	239
Deferred charges and other assets	36	37
Total other assets	389	392
Total Assets	4,126	4,289
Notes payable to related companies	58	51
Notes Payable - Other	4	4
Long-term debt due within one year	4	132
Trade	293	284
Accounts Payable to Related Company	375	411
Other	16	16
Operating lease liabilities - current	22	21
Income taxes payable	71	33
Asbestos-related liabilities - current	85	90
Accrued and other current liabilities	141	145
Total current liabilities	1,069	1,187
Long-Term Debt	260	262
Pension and other postretirement benefits - noncurrent	285	298
Asbestos-related liabilities - noncurrent	819	857
Operating lease liabilities - noncurrent	87	87
Other noncurrent obligations	279	254
Liabilities, Other than Long-term Debt, Noncurrent	1,470	1,496
Common stock (authorized: 1,000 shares of $0.01 par value each; issued: 935.51 shares)	0	0
Additional paid-in capital	141	141
Retained earnings	2,567	2,605
Accumulated other comprehensive loss	(1,381)	(1,402)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	1,327	1,344
Total Liabilities and Equity	$ 4,126	$ 4,289

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Consolidated Balance Sheets Parentheticals - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 0	$ 0
Finite-Lived Intangible Assets, Accumulated Amortization	$ 102	$ 100
Common stock, shares authorized	1,000	1,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares issued	935.51	935.51

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Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Statement of Cash Flows [Abstract]
Net income attributable to Union Carbide Corporation	$ 212	$ 356
Depreciation and amortization	88	101
Provision (credit) for deferred income tax	(3)	8
Net gain on sales of property and investments	1	0
Restructuring and asset related charges - net	14	0
Net periodic pension benefit cost	19	4
Pension contributions	(1)	(1)
Other Noncash Income (Expense)	1	1
Accounts and notes receivable	13	(5)
Related company receivables	185	(18)
Inventories	(8)	(40)
Accounts payable	9	48
Related company payables	(29)	64
Asbestos-related payments	(43)	(39)
Increase (Decrease) in Other Operating Assets and Liabilities, Net	36	93
Cash provided by operating activities	490	570
Capital expenditures	(120)	(50)
Change in noncurrent receivable from related company	3	1
Proceeds from Sales of Business, Affiliate and Productive Assets	1	0
Proceeds from sales of investments	7	0
Cash used for investing activities	(109)	(49)
Dividends paid to parent	(250)	(521)
Repayments of Long-term Debt	131	1
Cash used for financing activities	(381)	(522)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect, Total	0	(1)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning Balance	10	11
Cash and cash equivalents at end of period	$ 10	$ 10

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Consolidated Statements of Equity - USD ($) $ in Millions	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		$ 0	$ 141	$ 3,074	$ (1,551)
Net income attributable to Union Carbide Corporation	$ 356			356
Dividends, Common Stock				(521)
Other Comprehensive Income (Loss), Net of Tax	(38)				38
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		0	141	3,104	(1,534)
Net income attributable to Union Carbide Corporation	101			101
Dividends, Common Stock				(296)
Other Comprehensive Income (Loss), Net of Tax	(21)				21
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	1,537	0	141	2,909	(1,513)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	1,344	0	141	2,605	(1,402)
Net income attributable to Union Carbide Corporation	212			212
Dividends, Common Stock				(250)
Other Comprehensive Income (Loss), Net of Tax	(21)				21
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		0	141	2,515	(1,392)
Net income attributable to Union Carbide Corporation	167			167
Dividends, Common Stock				(115)
Other Comprehensive Income (Loss), Net of Tax	(11)				11
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 1,327	$ 0	$ 141	$ 2,567	$ (1,381)

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Organization, Consolidation and Presentation of Financial Statements

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

CONSOLIDATED FINANCIAL STATEMENTS

Basis of Presentation

The unaudited interim consolidated financial statements of Union Carbide Corporation and its subsidiaries (the "Corporation" or "UCC") were prepared in accordance with accounting principles generally accepted in the United States of America and reflect all adjustments (including normal recurring accruals) which, in the opinion of management, are considered necessary for the fair presentation of the results for the periods presented. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2022 ("2022 10-K").

The Corporation is a wholly owned subsidiary of The Dow Chemical Company ("TDCC"). In accordance with the accounting guidance for earnings per share, the presentation of earnings per share is not required in financial statements of wholly owned subsidiaries.

TDCC conducts its worldwide operations through global businesses. The Corporation’s business activities comprise components of TDCC’s global operations rather than stand-alone operations. Because there are no separate reportable business segments for UCC under the accounting guidance related to segment reporting and no detailed business information is provided to a chief operating decision maker regarding the Corporation’s stand-alone operations, the Corporation’s results are reported as a single operating segment.

Intercompany transactions and balances are eliminated in consolidation. Transactions with the Corporation’s parent company, TDCC, and other subsidiaries of TDCC, have been reflected as related company transactions in the consolidated financial statements. See Note 12 for additional information.

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RECENT ACCOUNTING GUIDANCE	6 Months Ended
	Jun. 30, 2023
Accounting Changes and Error Corrections [Abstract]
Accounting Standards Update and Change in Accounting Principle	RECENT ACCOUNTING GUIDANCERecently Adopted Accounting GuidanceIn the first quarter of 2023, the Corporation adopted the interim period disclosure requirements of Accounting Standards Update ("ASU") 2022-04, "Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations." The ASU, issued in September 2022, requires disclosures intended to enhance the transparency of supplier finance programs. Specifically, the amendments require buyers in a supplier finance program to disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period and potential magnitude. The amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for disclosure of rollforward information, which is required to be disclosed annually and is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The amendments should be applied retrospectively to each period in which a balance sheet is presented, except for disclosure of rollforward information, which should be applied prospectively. The Corporation expects to early adopt the annual requirement to disclose rollforward information prospectively beginning in the 2023 annual financial statements. See Note 6 for disclosures related to the Corporation's supplier finance program.

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REVENUE FROM CONTRACT WITH CUSTOMERS

6 Months Ended

Jun. 30, 2023

Revenue Recognition and Deferred Revenue [Abstract]

Revenue from Contract with Customer [Text Block]

REVENUE

Substantially all of the Corporation's revenue is generated by sales of products to TDCC. Products are sold to and purchased from TDCC at prices determined in accordance with the terms of an agreement between UCC and TDCC. The Corporation sells its products to TDCC to simplify the customer interface process.

The Corporation’s contract liabilities include payments received in advance of performance under long-term contracts for product sales and royalties with remaining contract terms that range up to 17 years. Amounts are recognized in revenue when the performance obligations for the contract are met. The Corporation has rights to additional consideration when product is delivered to the customer. The balance of contract liabilities was $32 million at June 30, 2023 ($33 million at December 31, 2022), of which $2 million ($2 million at December 31, 2022) was included in "Accrued and other current liabilities" and $30 million ($31 million at December 31, 2022) was included in "Other noncurrent obligations" in the consolidated balance sheets.

The Corporation disaggregates its revenue from contracts with customers by type of customer (net sales to related companies and net sales to trade customers) as presented in the consolidated statements of income and believes this disaggregation best depicts the nature, amount, timing and uncertainty of its revenue and cash flows. Substantially all of the product sales are made to the Corporation's parent company, TDCC, and there are no unique economic factors that affect revenue recognition and cash flows associated with these product sales.

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Restructuring and Related Activities

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure

RESTRUCTURING AND ASSET RELATED CHARGES - NET

2023 Restructuring Program

In the first quarter of 2023, the Corporation initiated restructuring actions to achieve its structural cost improvement initiatives in response to the continued economic impact from the global recessionary environment and to enhance its agility and long-term competitiveness across the economic cycle. The program includes workforce cost reductions and actions to rationalize the Corporation's manufacturing assets, which includes asset write-down and write-off charges. As a result of these actions, the Corporation recorded pretax restructuring charges of $14 million, included in "Restructuring and asset related charges - net" in the consolidated statements of income. The charges consisted of severance and related benefit costs of $12 million and asset write-downs and write-offs of $2 million. These actions are expected to be substantially complete by the end of 2024. The Corporation paid $2 million for severance and related benefit costs through June 30, 2023.

At June 30, 2023, a liability for severance and related benefit costs of $8 million was included in "Accrued and other current liabilities" and $2 million was included in "Other noncurrent obligations" in the consolidated balance sheets.

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INVENTORIES

6 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

INVENTORIES

INVENTORIES

The following table provides a breakdown of inventories:

Inventories	Jun 30, 2023		Dec 31, 2022
In millions
Finished goods	$	205	$	218
Work in process	29		37
Raw materials	67		76
Supplies	95		87
Total	$	396	$	418
Adjustment of inventories to the LIFO basis	(132)		(162)
Total inventories	$	264	$	256

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Supplier Finance Program	6 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
Supplier Finance Program	SUPPLIER FINANCE PROGRAMThe Corporation is a party to a supply chain financing (“SCF”) program, facilitated by TDCC, which can be used in the ordinary course of business to extend payment terms with the Corporation's vendors. Under the terms of this program, a vendor can voluntarily enter into an agreement with a participating financial intermediary to sell its receivables due from the Corporation. The vendor receives payment from the financial intermediary, and the Corporation pays the financial intermediary on the terms originally negotiated with the vendor, which generally range from 90 to 120 days. The vendor negotiates the terms of the agreements directly with the financial intermediary and the Corporation is not a party to that agreement. The financial intermediary may allow the participating vendor to utilize TDCC's creditworthiness in establishing credit spreads and associated costs, which may provide the vendor with more favorable terms than they would be able to secure on their own. Neither TDCC nor the Corporation provide guarantees related to the SCF program. At June 30, 2023, outstanding obligations confirmed as valid under the SCF program were $30 million ($29 million at December 31, 2022), included in “Accounts payable – Trade” in the consolidated balance sheets.

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES DISCLOSURE

COMMITMENTS AND CONTINGENCIES

A summary of the Corporation's commitments and contingencies can be found in Note 13 to the Consolidated Financial Statements included in the 2022 10-K, which is incorporated by reference herein.

Environmental Matters

Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. At June 30, 2023, the Corporation had accrued obligations of $202 million for probable environmental remediation and restoration costs ($183 million at December 31, 2022), including $39 million for the remediation of Superfund sites ($36 million at December 31, 2022). This is management’s best estimate of the costs for remediation and restoration with respect to environmental matters for which the Corporation has accrued liabilities, although it is reasonably possible that the ultimate cost with respect to these particular matters could range up to approximately two times that amount. Consequently, it is reasonably possible that environmental remediation and restoration costs in excess of amounts accrued could have a material impact on the Corporation's results of operations, financial condition and cash flows. It is the opinion of the Corporation’s management that the possibility is remote that costs in excess of the range disclosed will have a material impact on the Corporation’s results of operations, financial condition and cash flows. Inherent uncertainties exist in these estimates primarily due to unknown environmental conditions, changing governmental regulations and legal standards regarding liability, and emerging remediation technologies for handling site remediation and restoration. As new or additional information becomes available and/or certain spending trends become known, management will evaluate such information in determination of the current estimate of the environmental liability.

During the first quarter of 2022, the Corporation recorded a pretax charge of $37 million, included in "Cost of sales" in the consolidated statements of income, related to environmental remediation at a number of current and historical locations. The charge primarily resulted from updated remediation estimates and scope changes on existing matters.

Litigation

Asbestos-Related Matters

Each quarter, the Corporation reviews asbestos-related claims filed, settled and dismissed, as well as average settlement and resolution costs by disease category. The Corporation also considers additional quantitative and qualitative factors such as the nature of pending claims, trial experience of the Corporation and other asbestos defendants, current spending for defense and processing costs, significant appellate rulings and legislative developments, trends in the tort system, and their respective effects on expected future resolution costs. UCC management considers these factors in conjunction with the most recent actuarial study and determines whether a change in the estimate is warranted. Based on the Corporation's review of 2023 activity, it was determined that no adjustment to the accrual was required at June 30, 2023.

The Corporation’s total asbestos-related liability for pending and future claims and defense and processing costs was $904 million at June 30, 2023 ($947 million at December 31, 2022), and was included in “Asbestos-related liabilities - current” and “Asbestos-related liabilities - noncurrent” in the consolidated balance sheets. At June 30, 2023, approximately 26 percent of the recorded claim liability related to pending claims and approximately 74 percent related to future claims.

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LEASES (Notes)

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Lessee, Operating And Finance Leases

LEASES

For additional information on the Corporation's leases, see Note 14 to the Consolidated Financial Statements included in the 2022 10-K.

The components of lease cost for operating and finance leases for the three and six months ended June 30, 2023 and 2022 were as follows:

Lease Cost	Three Months Ended				Six Months Ended
In millions	Jun 30, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022
Operating lease cost	$	7	$	6	$	13	$	12
Short-term lease cost	11		8		21		16
Variable lease cost	5		5		12		9
Amortization of right-of-use assets - finance	1		—		2		1
Total lease cost	$	24	$	19	$	48	$	38

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AOCL

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

ACCUMULATED OTHER COMPREHENSIVE LOSS

ACCUMULATED OTHER COMPREHENSIVE LOSS

The changes in the balances for each component of accumulated other comprehensive loss ("AOCL") for the three and six months ended June 30, 2023 and 2022 were as follows:

Accumulated Other Comprehensive Loss	Three Months Ended				Six Months Ended
In millions	Jun 30, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022
Cumulative Translation Adjustment
Beginning balance	$	(53)	$	(55)	$	(54)	$	(53)
Unrealized gains (losses) on foreign currency translation	1		2		2		—
Ending balance	$	(52)	$	(53)	$	(52)	$	(53)
Pension and Other Postretirement Benefits
Beginning balance	$	(1,339)	$	(1,479)	$	(1,348)	$	(1,498)
Amortization of net loss and prior service credit reclassified from AOCL to net income 1	13		24		25		49
Tax expense (benefit) 2	(3)		(5)		(6)		(11)
Net loss and prior service credit reclassified from AOCL to net income	10		19		19		38
Ending balance	$	(1,329)	$	(1,460)	$	(1,329)	$	(1,460)
Total AOCL ending balance	$	(1,381)	$	(1,513)	$	(1,381)	$	(1,513)

1.These AOCL components are included in the computation of net periodic benefit cost (credit) of the Corporation's defined benefit pension and other postretirement benefit plans. See Note 10 for additional information.

2.Reclassified to "Provision for income taxes."

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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS

6 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS

A summary of the Corporation's pension and other postretirement benefit plans can be found in Note 16 to the Consolidated Financial Statements included in the 2022 10-K. The following table provides the components of the Corporation's net periodic benefit cost (credit) for all significant plans:

Net Periodic Benefit Cost (Credit) for All Significant Plans	Three Months Ended				Six Months Ended
In millions	Jun 30, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022
Defined Benefit Pension Plans
Service cost	$	8	$	9	$	17	$	18
Interest cost	37		23		74		46
Expected return on plan assets	(52)		(56)		(104)		(113)
Amortization of prior service credit	—		(1)		—		(1)
Amortization of net loss	16		27		32		54
Net periodic benefit cost	$	9	$	2	$	19	$	4
Other Postretirement Benefit Plan
Interest cost	$	1	$	1	$	3	$	2
Amortization of net gain	(3)		(2)		(7)		(4)
Net periodic benefit credit	$	(2)	$	(1)	$	(4)	$	(2)

Net periodic benefit cost (credit), other than the service cost component, is included in "Sundry income (expense) - net" in the consolidated statements of income.

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Fair Value Measures and Disclosures

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Financial Instruments Disclosure [Text Block]

FAIR VALUE MEASUREMENTS

The Corporation's financial instruments are classified as Level 2 measurements. For assets and liabilities classified as Level 2 measurements, where the security is frequently traded in less active markets, fair value is based on the closing price at the end of the period; where the security is less frequently traded, fair value is based on the price a dealer would pay for the security or similar securities, adjusted for any terms specific to that asset or liability, or by using observable market data points of similar, more liquid securities to imply the price. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance and quality checks.

The following table summarizes the fair value of the Corporation's financial instruments at June 30, 2023 and December 31, 2022:

Fair Value of Financial Instruments	Jun 30, 2023								Dec 31, 2022
In millions	Cost		Gain		Loss		Fair Value		Cost		Gain		Loss		Fair Value
Cash equivalents 1	$	10	$	—	$	—	$	10	$	10	$	—	$	—	$	10
Long-term debt including debt due within one year	$	(264)	$	—	$	(29)	$	(293)	$	(394)	$	—	$	(29)	$	(423)

1.Money market fund is included in "Cash and cash equivalents" in the consolidated balance sheets and held at amortized cost, which approximates fair value.

Cost approximates fair value for all other financial instruments.

Fair Value Measurements on a Nonrecurring Basis

As part of the 2023 Restructuring Program, the Corporation rationalized its manufacturing assets to achieve its structural cost improvement initiatives. In the first quarter of 2023, the manufacturing assets associated with this plan, classified as Level 3 measurements and valued using unobservable inputs, were written down to zero and the Corporation recorded an impairment charge of $2 million, which was included in "Restructuring and asset related charges - net" in the consolidated statements of income.

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RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2023

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS DISCLOSURE

RELATED PARTY TRANSACTIONS

A summary of the Corporation's related party transactions can be found in Note 18 to the Consolidated Financial Statements included in the 2022 10-K.

Product and Services Agreements

The following table summarizes UCC’s transactions with TDCC and a TDCC subsidiary related to product and services agreements for the three and six months ended June 30, 2023 and 2022:

Product and Services Agreements Transactions	Three Months Ended				Six Months Ended
	Jun 30, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022		Income Statement Classification
In millions
TDCC Subsidiary:
Commodity and raw materials purchases 1	$	262	$	563	$	581	$	1,068	Cost of sales
Commission expense	$	5	$	5	$	10	$	10	Sundry income (expense) - net
TDCC:
General administrative and overhead type services and service fee	$	17	$	16	$	34	$	32	Sundry income (expense) - net
Activity-based costs 2	$	25	$	22	$	51	$	42	Cost of sales

1.Period-end balances on hand are included in inventory. The decrease in purchase costs was primarily due to lower feedstock and energy costs and lower production.

2.The increase in activity-based costs was primarily due to labor expense for engineering related to capital investment activity on the U.S. Gulf Coast.

The following table summarizes cash dividends declared and paid to TDCC for the three and six months ended June 30, 2023 and 2022:

Cash Dividends Declared and Paid	Three Months Ended				Six Months Ended
	Jun 30, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022
In millions
Cash dividends declared and paid	$	115	$	296	$	250	$	521

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INVENTORIES (Tables)

6 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

The following table provides a breakdown of inventories:

Inventories	Jun 30, 2023		Dec 31, 2022
In millions
Finished goods	$	205	$	218
Work in process	29		37
Raw materials	67		76
Supplies	95		87
Total	$	396	$	418
Adjustment of inventories to the LIFO basis	(132)		(162)
Total inventories	$	264	$	256

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LEASES (Tables)

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Lease, Cost [Table Text Block]

The components of lease cost for operating and finance leases for the three and six months ended June 30, 2023 and 2022 were as follows:

Lease Cost	Three Months Ended				Six Months Ended
In millions	Jun 30, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022
Operating lease cost	$	7	$	6	$	13	$	12
Short-term lease cost	11		8		21		16
Variable lease cost	5		5		12		9
Amortization of right-of-use assets - finance	1		—		2		1
Total lease cost	$	24	$	19	$	48	$	38

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AOCL (Tables)

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Schedule of Components of Other Comprehensive Income (Loss)

The changes in the balances for each component of accumulated other comprehensive loss ("AOCL") for the three and six months ended June 30, 2023 and 2022 were as follows:

Accumulated Other Comprehensive Loss	Three Months Ended				Six Months Ended
In millions	Jun 30, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022
Cumulative Translation Adjustment
Beginning balance	$	(53)	$	(55)	$	(54)	$	(53)
Unrealized gains (losses) on foreign currency translation	1		2		2		—
Ending balance	$	(52)	$	(53)	$	(52)	$	(53)
Pension and Other Postretirement Benefits
Beginning balance	$	(1,339)	$	(1,479)	$	(1,348)	$	(1,498)
Amortization of net loss and prior service credit reclassified from AOCL to net income 1	13		24		25		49
Tax expense (benefit) 2	(3)		(5)		(6)		(11)
Net loss and prior service credit reclassified from AOCL to net income	10		19		19		38
Ending balance	$	(1,329)	$	(1,460)	$	(1,329)	$	(1,460)
Total AOCL ending balance	$	(1,381)	$	(1,513)	$	(1,381)	$	(1,513)

1.These AOCL components are included in the computation of net periodic benefit cost (credit) of the Corporation's defined benefit pension and other postretirement benefit plans. See Note 10 for additional information.

2.Reclassified to "Provision for income taxes."

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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables)

6 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Net Periodic Benefit Cost for All Significant Plans

The following table provides the components of the Corporation's net periodic benefit cost (credit) for all significant plans:

Net Periodic Benefit Cost (Credit) for All Significant Plans	Three Months Ended				Six Months Ended
In millions	Jun 30, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022
Defined Benefit Pension Plans
Service cost	$	8	$	9	$	17	$	18
Interest cost	37		23		74		46
Expected return on plan assets	(52)		(56)		(104)		(113)
Amortization of prior service credit	—		(1)		—		(1)
Amortization of net loss	16		27		32		54
Net periodic benefit cost	$	9	$	2	$	19	$	4
Other Postretirement Benefit Plan
Interest cost	$	1	$	1	$	3	$	2
Amortization of net gain	(3)		(2)		(7)		(4)
Net periodic benefit credit	$	(2)	$	(1)	$	(4)	$	(2)

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Fair Value Measures and Disclosures (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping [Table Text Block]

The following table summarizes the fair value of the Corporation's financial instruments at June 30, 2023 and December 31, 2022:

Fair Value of Financial Instruments	Jun 30, 2023								Dec 31, 2022
In millions	Cost		Gain		Loss		Fair Value		Cost		Gain		Loss		Fair Value
Cash equivalents 1	$	10	$	—	$	—	$	10	$	10	$	—	$	—	$	10
Long-term debt including debt due within one year	$	(264)	$	—	$	(29)	$	(293)	$	(394)	$	—	$	(29)	$	(423)

1.Money market fund is included in "Cash and cash equivalents" in the consolidated balance sheets and held at amortized cost, which approximates fair value.

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Related Party Disclosures (Tables)

6 Months Ended

Jun. 30, 2023

Related Party Transactions [Abstract]

Schedule of Related Party Transactions

The following table summarizes UCC’s transactions with TDCC and a TDCC subsidiary related to product and services agreements for the three and six months ended June 30, 2023 and 2022:

Product and Services Agreements Transactions	Three Months Ended				Six Months Ended
	Jun 30, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022		Income Statement Classification
In millions
TDCC Subsidiary:
Commodity and raw materials purchases 1	$	262	$	563	$	581	$	1,068	Cost of sales
Commission expense	$	5	$	5	$	10	$	10	Sundry income (expense) - net
TDCC:
General administrative and overhead type services and service fee	$	17	$	16	$	34	$	32	Sundry income (expense) - net
Activity-based costs 2	$	25	$	22	$	51	$	42	Cost of sales

1.Period-end balances on hand are included in inventory. The decrease in purchase costs was primarily due to lower feedstock and energy costs and lower production.

2.The increase in activity-based costs was primarily due to labor expense for engineering related to capital investment activity on the U.S. Gulf Coast.

Dividends Declared

The following table summarizes cash dividends declared and paid to TDCC for the three and six months ended June 30, 2023 and 2022:

Cash Dividends Declared and Paid	Three Months Ended				Six Months Ended
	Jun 30, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022
In millions
Cash dividends declared and paid	$	115	$	296	$	250	$	521

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Revenue from Contract with Customer (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Revenue from External Customer [Line Items]
Contract with Customer, Liability	$ 32	$ 33
Accrued Liabilities [Member]
Revenue from External Customer [Line Items]
Contract with Customer, Liability, Current	2	2
Other Noncurrent Liabilities [Member]
Revenue from External Customer [Line Items]
Contract with Customer, Liability, Noncurrent	$ 30	$ 31
Maximum [Member]
Revenue from External Customer [Line Items]
Revenue, Performance Obligation, Description of Timing	17 years

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Restructuring and Related Activities (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Restructuring Cost and Reserve [Line Items]
Restructuring and asset related charges - net	$ 0	$ 14	$ 0	$ 14	$ 0
Accrued and Other Current Liabilities
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	8			8
Other Noncurrent Obligations
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	$ 2			2
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and asset related charges - net		12
Payments for Restructuring				2
Asset write-downs and write-offs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and asset related charges - net		$ 2		$ 2

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INVENTORIES (Schedule of Inventories) (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Finished goods	$ 205	$ 218
Work in process	29	37
Raw materials	67	76
Supplies	95	87
Inventory, Gross	396	418
Inventory Adjustments	(132)	(162)
Total inventories	$ 264	$ 256

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Supplier Finance Program (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Accounts Payable
Supplier Finance Program [Line Items]
Supplier Finance Program Obligation, Current	$ 30	$ 29

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COMMITMENTS AND CONTINGENCIES (Environmental Matters) (Narrative) (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2023	Dec. 31, 2022
Site Contingency [Line Items]
Accrual for Environmental Loss Contingencies		$ 202	$ 183
Accrual for Environmental Loss Contingencies, Revision in Estimates	$ 37
Super Fund Sites [Member]
Site Contingency [Line Items]
Accrual for Environmental Loss Contingencies		$ 39	$ 36

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COMMITMENTS AND CONTINGENCIES (Asbestos-Related Matters of Union Carbide Corporation) (Table and Narrative) (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Loss Contingencies [Line Items]
Liability for Asbestos and Environmental Claims, Gross	$ 904	$ 947
Percentage of recorded asbestos liability related to pending claims	26.00%
Percentage of recorded asbestos liability related to future claims	74.00%

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LEASES COSTS AND OTHER INFORMATION (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Operating Lease Cost	$ 7	$ 6	$ 13	$ 12
Short-term Lease Cost	11	8	21	16
Variable Lease, Cost	5	5	12	9
Finance Lease, Right-of-Use Asset, Amortization	1	0	2	1
Lease, Cost	$ 24	$ 19	$ 48	$ 38

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AOCL (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss	$ (1,381)	$ (1,513)	$ (1,381)	$ (1,513)		$ (1,402)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss	(52)	(53)	(52)	(53)	$ (53)	(54)	$ (55)	$ (53)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	1	2	2	0
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss	(1,329)	(1,460)	(1,329)	(1,460)	$ (1,339)	$ (1,348)	$ (1,479)	$ (1,498)
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	13	24	25	49
Reclassification from AOCI, Current Period, Tax	(3)	(5)	(6)	(11)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	$ 10	$ 19	$ 19	$ 38

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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Defined Benefit Pension Plans [Member]
Service cost	$ 8	$ 9	$ 17	$ 18
Interest cost	37	23	74	46
Expected return on plan assets	52	56	104	113
Defined Benefit Plan, Amortization of Prior Service Cost (Credit)	0	(1)	0	(1)
Defined Benefit Plan, Amortization of Gain (Loss)	(16)	(27)	(32)	(54)
Net periodic benefit cost (credit)	9	2	19	4
Other Postretirement Benefits [Member]
Interest cost	1	1	3	2
Defined Benefit Plan, Amortization of Gain (Loss)	3	2	7	4
Net periodic benefit cost (credit)	$ (2)	$ (1)	$ (4)	$ (2)

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Fair Value Measures and Disclosures (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Long-term Debt	$ (264)			$ (264)		$ (394)
Long-term Debt, Fair Value	(293)			(293)		(423)
Restructuring and asset related charges - net	0	$ 14	$ 0	14	$ 0
Restructuring and asset related charges - net	0	14	$ 0	14	$ 0
Asset write-downs and write-offs [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Restructuring and asset related charges - net		2		2
Restructuring and asset related charges - net		$ 2		2
Long-term Debt [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Financial Instruments Gross Unrealized Gains	0			0		0
Financial Instruments Gross Unrealized Loss	(29)			(29)		(29)
Money Market Funds [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash Equivalents, at Carrying Value	10			10		10
Financial Instruments Gross Unrealized Gains	0			0		0
Financial Instruments Gross Unrealized Loss	0			0		0
Cash Equivalents, Fair Value	10			10		$ 10
Fair Value, Inputs, Level 3 | Fair Value, Nonrecurring [Member] | Manufacturing Assets [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Assets, Fair Value Disclosure	$ 0			$ 0

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RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Related Party Transaction [Line Items]
Payments of Dividends			$ 250	$ 521
The Dow Chemical Company [Member]
Related Party Transaction [Line Items]
Payments of Dividends	$ 115	$ 296	$ 250	$ 521
Commodity And Raw Material Purchases | Cost of Sales [Member] | The Dow Chemical Company [Member]
Related Party Transaction [Line Items]
Operating Cost and Expense, Related and Nonrelated Party Status [Extensible Enumeration]	Related Party [Member]	Related Party [Member]	Related Party [Member]	Related Party [Member]
Net Commission Expense | Sundry Income (Expense), Net [Member] | The Dow Chemical Company [Member]
Related Party Transaction [Line Items]
Operating Cost and Expense, Related and Nonrelated Party Status [Extensible Enumeration]	Related Party [Member]	Related Party [Member]	Related Party [Member]	Related Party [Member]
General and Administrative Expense | Sundry Income (Expense), Net [Member] | The Dow Chemical Company [Member]
Related Party Transaction [Line Items]
Operating Cost and Expense, Related and Nonrelated Party Status [Extensible Enumeration]	Related Party [Member]	Related Party [Member]	Related Party [Member]	Related Party [Member]
Activity Based Costs | Cost of Sales [Member] | The Dow Chemical Company [Member]
Related Party Transaction [Line Items]
Operating Cost and Expense, Related and Nonrelated Party Status [Extensible Enumeration]	Related Party [Member]	Related Party [Member]	Related Party [Member]	Related Party [Member]