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OPERATING SEGMENTS AND GEOGRAPHIC AREAS
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
OPERATING SEGMENTS AND GEOGRAPHIC AREAS

Dow is a diversified, worldwide manufacturer and supplier of products used primarily as raw materials in the manufacture of customer products and services. The Company serves the following industries: appliance; automotive; agricultural; building and construction; chemical processing; electronics; furniture; housewares; oil and gas; packaging; paints, coatings and adhesives; personal care; pharmaceutical; processed foods; pulp and paper; textile and carpet; utilities; and water treatment.
Dow conducts its worldwide operations through global businesses, which are reported in five operating segments. Corporate contains the reconciliation between the totals for the reportable segments and the Company’s totals and includes research and other expenses related to new business development activities, and other corporate items not allocated to the reportable operating segments.

The Company uses EBITDA (which Dow defines as earnings (i.e., "Net Income") before interest, income taxes, depreciation and amortization) as its measure of profit/loss for segment reporting purposes. EBITDA by operating segment includes all operating items relating to the businesses; items that principally apply to the Company as a whole are assigned to Corporate. See table toward the end of this footnote for depreciation and amortization by segment, as well as a reconciliation of EBITDA to “Income Before Income Taxes.”

Corporate Profile
Dow combines the power of science and technology to passionately innovate what is essential to human progress. The Company is driving innovations that extract value from materials, polymers, chemicals and biological sciences to help address many of the world's most challenging problems such as the need for clean water, clean energy generation and conservation, and increasing agricultural productivity. Dow's integrated, market-driven, industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 180 countries and in high-growth sectors such as packaging, electronics, water, coatings and agriculture. In 2015, Dow had annual sales of nearly $49 billion and employed approximately 49,500 people worldwide. The Company's more than 6,000 product families are manufactured at 179 sites in 35 countries across the globe. The Company conducts its worldwide operations through global businesses, which are reported in five operating segments: Agricultural Sciences, Consumer Solutions, Infrastructure Solutions, Performance Materials & Chemicals and Performance Plastics.

Agricultural Sciences
The Agricultural Sciences segment is a global leader in providing crop protection and seed/plant biotechnology products and technologies, urban pest management solutions and healthy oils. The business invents, develops, manufactures and markets products for use in agricultural, industrial and commercial pest management, and food service. Agricultural Sciences consists of two businesses - Crop Protection and Seeds.

Acquisition:
On January 30, 2015, Dow AgroSciences LLC ("DAS") acquired Coodetec's seed business. See Note 4 for additional information on this acquisition.

Divestiture:
On July 31, 2015, the Company sold its AgroFresh business to AFSI. The AgroFresh business was reported in the Agricultural Sciences segment through the date of divestiture. The Company has retained a minority interest in AFSI which is reported in the Agricultural Sciences segment and accounted for as an equity method investment. See Note 5 for additional information on this divestiture.

Consumer Solutions
The Consumer Solutions segment consists of three global businesses: Consumer Care, Dow Automotive Systems and Dow Electronic Materials. These global businesses develop and market customized materials using advanced technology and unique chemistries for specialty applications - including semiconductors and organic light-emitting diodes, adhesives and foams used by the transportation industry, and cellulosics and other polymers for innovative pharmaceutical formulations and food solutions. These businesses serve the needs of market segments as diverse as: automotive; electronics and entertainment; food and pharmaceuticals; and, personal and home care products. The Consumer Solutions segment also includes a portion of the Company's share of the results of Dow Corning, a joint venture that manufactures silicone and silicone products, which is owned 50 percent by the Company.

Infrastructure Solutions
The Infrastructure Solutions segment is comprised of an industry-leading portfolio of businesses utilizing advanced technology to deliver products such as architectural and industrial coatings, construction material ingredients, building insulation, adhesives, microbial protection for the oil and gas industry, and water technologies. Infrastructure Solutions consists of four global businesses: Dow Building & Construction, Dow Coating Materials, Energy & Water Solutions and Performance Monomers. The Infrastructure Solutions segment also includes a portion of the Company's share of the results of Dow Corning, a joint venture that manufactures silicone and silicone products, which is owned 50 percent by the Company.

Performance Materials & Chemicals
The Performance Materials & Chemicals segment is comprised of three technology-driven, customer-centric global businesses that are advantaged through integration and driven by innovative technology and solutions: Chlor-Alkali and Vinyl, Industrial Solutions and Polyurethanes. Products produced by this segment are back-integrated into feedstocks, supporting a low-cost manufacturing base and consistent, reliable supply. The Performance Materials & Chemicals segment is positioned for growth through diverse markets and product offerings. The Performance Materials & Chemicals segment also includes the results of MEGlobal and a portion of the results of EQUATE, TKOC, Map Ta Phut Olefins Company Limited and Sadara, all joint ventures of the Company.

Divestitures:
On January 30, 2015, the Company sold its global Sodium Borohydride business to Vertellus Specialty Materials LLC. On February 2, 2015, the Company sold ANGUS Chemical Company to Golden Gate Capital. On October 5, 2015, the Company completed the split-off of its U.S. Gulf Coast Chlor-Alkali and Vinyl, Global Chlorinated Organics and Global Epoxy businesses to Olin in a tax-efficient Reverse Morris Trust transaction. These businesses were reported in the Performance Materials & Chemicals segment through the date of divestiture.

On December 23, 2015, the Company sold its 50 percent ownership interest in MEGlobal to EQUATE. MEGlobal was aligned 100 percent with Performance Materials & Chemicals through the date of divestiture. Dow has retained a 42.5 percent ownership stake in MEGlobal through its ownership in EQUATE. See Notes 5, 6 and 9 for additional information on these divestitures.

Performance Plastics
The Performance Plastics segment is the world’s leading plastics franchise, and is a market-oriented portfolio composed of five global businesses: Dow Elastomers, Dow Electrical and Telecommunications, Dow Packaging and Specialty Plastics, Energy and Hydrocarbons. The segment is advantaged through its low cost position into key feedstocks and benefits from Dow’s R&D expertise to deliver leading-edge technology that provides a competitive benefit to customers in key strategic markets. The Performance Plastics segment also includes the results of TKSC and The SCG-Dow Group as well as a portion of the results of EQUATE, TKOC, Map Ta Phut Olefins Limited and Sadara, all joint ventures of the Company.

Acquisition:
On May 5, 2015, Univation Technologies, LLC, previously a 50:50 joint venture between Dow and ExxonMobil, became a wholly owned subsidiary of Dow. See Note 4 for additional information on this step acquisition.

Divestiture:
On December 2, 2013, the Company sold its Polypropylene Licensing and Catalysts business to W. R. Grace & Co. This business was reported in the Performance Plastics segment through the date of divestiture. See Note 5 for additional information on this divestiture.

Corporate
Corporate includes certain enterprise and governance activities (including insurance operations, geographic management, risk management such as foreign currency hedging activities, audit fees, donations, Company branding initiatives, etc.); the results of Ventures (including business incubation platforms and non-business aligned joint ventures); environmental operations; gains and losses on the sales of financial assets; severance costs; non-business aligned litigation expenses (including asbestos-related defense costs and reserve adjustments); and, foreign exchange results.

The Company operates 179 manufacturing sites in 35 countries. The United States is home to 55 of these sites, representing 62 percent of the Company’s long-lived assets. Sales are attributed to geographic areas based on customer location; long-lived assets are attributed to geographic areas based on asset location.

Geographic Area Information
 
United States

 
Europe,
Middle East, Africa and India 

 
Rest of World

 
Total

In millions
2015
 
 
 
 
 
 
 
 
Sales to external customers
 
$
16,821

 
$
15,291

 
$
16,666

 
$
48,778

Long-lived assets
 
$
11,062

 
$
2,172

 
$
4,620

 
$
17,854

2014
 

 

 

 
 
Sales to external customers
 
$
19,449

 
$
19,671

 
$
19,047

 
$
58,167

Long-lived assets 
 
$
10,605

 
$
2,628

 
$
4,818

 
$
18,051

2013
 
 
 
 
 
 
 
 
Sales to external customers
 
$
18,712

 
$
19,208

 
$
19,160

 
$
57,080

Long-lived assets
 
$
9,320

 
$
3,256

 
$
4,878

 
$
17,454





Operating Segment Information
 
Agri-cultural Sciences

 
Consumer Solutions

 
Infra-structure Solutions

 
Perf Materials & Chemicals

 
Perf Plastics

 
Corp

 
Total

In millions
2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales to external customers
 
$
6,381

 
$
4,379

 
$
7,394

 
$
11,973

 
$
18,357

 
$
294

 
$
48,778

Intersegment revenues (1)
 
—

 
—

 
—

 
24

 
—

 
(24
)
 
—

Equity in earnings (losses) of nonconsolidated affiliates
 
(15
)
 
91

 
203

 
225

 
220

 
(50
)
 
674

Restructuring charges (3)
 
16

 
67

 
26

 
—

 
12

 
294

 
415

EBITDA (5)
 
1,432

 
1,048

 
1,021

 
5,479

 
5,399

 
(1,053
)
 
13,326

Total assets (6)
 
6,333

 
9,234

 
12,186

 
7,694

 
14,310

 
18,269

 
68,026

Investment in nonconsolidated affiliates
 
275

 
732

 
986

 
155

 
304

 
1,506

 
3,958

Depreciation and amortization
 
195

 
354

 
495

 
637

 
746

 
94

 
2,521

Capital expenditures
 
308

 
134

 
355

 
223

 
2,683

 
—

 
3,703

2014
 

 

 

 

 

 

 
 
Sales to external customers
 
$
7,290

 
$
4,639

 
$
8,429

 
$
15,114

 
$
22,386

 
$
309

 
$
58,167

Intersegment revenues (1)
 
—

 
—

 
—

 
100

 
—

 
(100
)
 
—

Equity in earnings (losses) of nonconsolidated affiliates
 
4

 
281

 
(6
)
 
322

 
257

 
(23
)
 
835

Goodwill and other intangible assets impairment loss (2)
 
—

 
50

 
—

 
—

 
—

 
—

 
50

Restructuring credits (3)
 
—

 
—

 
—

 
(3
)
 
—

 
—

 
(3
)
Asbestos-related charge (4)
 
—

 
—

 
—

 
—

 
—

 
78

 
78

EBITDA (5)
 
962

 
1,130

 
817

 
2,193

 
4,422

 
(580
)
 
8,944

Total assets (6)
 
7,292

 
9,629

 
12,245

 
12,166

 
13,459

 
13,896

 
68,687

Investment in nonconsolidated affiliates
 
83

 
691

 
922

 
698

 
705

 
1,102

 
4,201

Depreciation and amortization
 
208

 
396

 
510

 
780

 
759

 
94

 
2,747

Capital expenditures
 
383

 
114

 
269

 
315

 
2,490

 
1

 
3,572

2013
 

 

 

 

 

 

 
 
Sales to external customers
 
$
7,137

 
$
4,562

 
$
8,339

 
$
14,824

 
$
21,910

 
$
308

 
$
57,080

Intersegment revenues (1)
 
—

 
—

 
—

 
137

 
—

 
(137
)
 
—

Equity in earnings (losses) of nonconsolidated affiliates
 
5

 
107

 
126

 
480

 
355

 
(39
)
 
1,034

Restructuring credits (3)
 
—

 
—

 
(1
)
 
(15
)
 
(6
)
 
—

 
(22
)
EBITDA (5)
 
894

 
933

 
941

 
1,913

 
4,503

 
1,361

 
10,545

Total assets (6)
 
7,059

 
10,171

 
12,844

 
12,071

 
13,788

 
13,469

 
69,402

Investment in nonconsolidated affiliates
 
88

 
541

 
1,178

 
827

 
772

 
1,095

 
4,501

Depreciation and amortization
 
189

 
414

 
528

 
743

 
707

 
100

 
2,681

Capital expenditures
 
319

 
105

 
198

 
409

 
1,271

 
—

 
2,302

(1)
Includes revenues generated by transfers of product to Agricultural Sciences from other segments, generally at market-based prices. Other transfers of products between operating segments are generally valued at cost.
(2)
See Note 12 for information regarding intangible asset impairment losses.
(3)
See Note 3 for information regarding restructuring charges and credits.
(4)
See Note 15 for information regarding the asbestos-related charge.
(5)
A reconciliation of EBITDA to “Income Before Income Taxes” is provided below.
(6)
Presented in accordance with newly implemented ASU 2015-03. See Note 2 for additional information.


Reconciliation of EBITDA to “Income Before Income Taxes”
In millions
 
2015

 
2014

 
2013

EBITDA
 
$
13,326

 
$
8,944

 
$
10,545

- Depreciation and amortization
 
2,521

 
2,747

 
2,681

+ Interest income
 
71

 
51

 
41

- Interest expense and amortization of debt discount
 
946

 
983

 
1,101

Income Before Income Taxes
 
$
9,930

 
$
5,265

 
$
6,804