EX-99.2 3 ex992supplementalcashflowi.htm EXHIBIT 99.2 Exhibit


Exhibit 99.2

The Dow Chemical Company and its consolidated subsidiaries (“Historical Dow” prior to separation and “TDCC” after separation) and Dow Inc. (together with TDCC, "Dow") are furnishing supplemental cash flow information by quarter for 2017, 2018 and first quarter of 2019. The supplemental cash flow information reflects the treatment of Historical Dow’s agricultural sciences business and specialty products business as discontinued operations and the common control acquisition of E. I. du Pont de Nemours and Company and its consolidated subsidiaries' ("Historical DuPont") ethylene and ethylene copolymers businesses (other than its ethylene acrylic elastomers business) from August 31, 2017, the date on which Historical Dow and Historical DuPont merged (the "Merger"). This supplemental cash flow information is for informational purposes only and is not necessarily indicative of what Dow’s cash flows actually would have been had the Merger, internal reorganization and business realignment, separation, distribution and other related transactions been completed as of the dates indicated below. In addition, the supplemental cash flow information does not purport to project the future cash flows of Dow.

Supplemental Cash Flow Information (Unaudited)
Three Months Ended
Year Ended
Three Months Ended
Year Ended
Three Months Ended
In millions
Mar 31, 2017
Jun 30, 2017
Sep 30, 2017
Dec 31, 2017
Dec 31, 2017
Mar 31, 2018
Jun 30, 2018
Sep 30, 2018
Dec 31, 2018
Dec 31, 2018
Mar 31, 2019
Operating Activities
 
 
 
 
 
 
 
 
 
 
 
Cash provided by (used for) operating activities - continuing operations
$
(1,204
)
$
(2,550
)
$
99

$
(2,788
)
$
(6,443
)
$
744

$
760

$
203

$
1,389

$
3,096

$
1,043

Cash provided by (used for) operating activities - discontinued operations
(318
)
1,053

734

45

1,514

(734
)
1,023

528

341

1,158

338

Cash provided by (used for) operating activities
(1,522
)
(1,497
)
833

(2,743
)
(4,929
)
10

1,783

731

1,730

4,254

1,381

Investing Activities
 
 
 
 
 
 
 
 
 
 
 
Cash provided by (used for) investing activities - continuing operations
1,103

2,032

2,188

1,470

6,793

(63
)
(277
)
(767
)
(719
)
(1,826
)
(464
)
Cash provided by (used for) investing activities - discontinued operations
(10
)
(15
)
(92
)
842

725

(43
)
(69
)
(91
)
(166
)
(369
)
(34
)
Cash provided by (used for) investing activities
1,093

2,017

2,096

2,312

7,518

(106
)
(346
)
(858
)
(885
)
(2,195
)
(498
)
Financing Activities
 
 
 
 
 
 
 
 
 
 
 
Cash used for financing activities - continuing operations
(205
)
(442
)
(889
)
(1,739
)
(3,275
)
(990
)
(1,579
)
(1,308
)
(1,474
)
(5,351
)
(615
)
Cash provided by (used for) financing activities - discontinued operations
(52
)
9

22

(29
)
(50
)
(17
)
(26
)
(1
)
(9
)
(53
)
(18
)
Cash used for financing activities
(257
)
(433
)
(867
)
(1,768
)
(3,325
)
(1,007
)
(1,605
)
(1,309
)
(1,483
)
(5,404
)
(633
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
56

152

115

(3
)
320

100

(168
)
9

(40
)
(99
)
30

Summary
 
 
 
 
 
 
 
 
 
 
 
Increase (decrease) in cash, cash equivalents and restricted cash
(630
)
239

2,177

(2,202
)
(416
)
(1,003
)
(336
)
(1,427
)
(678
)
(3,444
)
280

Cash, cash equivalents and restricted cash at beginning of period
6,624

5,994

6,233

8,410

6,624

6,208

5,205

4,869

3,442

6,208

2,764

Cash, cash equivalents and restricted cash at end of period
$
5,994

$
6,233

$
8,410

$
6,208

$
6,208

$
5,205

$
4,869

$
3,442

$
2,764

$
2,764

$
3,044

Less: Restricted cash and cash equivalents, included in "Other current assets"
146

15

15

19

19

18

45

31

40

40

43

Cash and cash equivalents at end of period
$
5,848

$
6,218

$
8,395

$
6,189

$
6,189

$
5,187

$
4,824

$
3,411

$
2,724

$
2,724

$
3,001


30


Non-GAAP Measures
Cash Flows from Operating Activities - Excluding Impact of ASU 2016-15
Dow calculates cash flows from operating activities - excluding the impact of ASU 2016-15 as cash provided by (used for) operating activities - continuing operations, excluding the impact of Accounting Standards Update ("ASU") 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" and related interpretive guidance. Management believes this non-GAAP financial measure is relevant and meaningful as it presents cash flows from operating activities inclusive of all trade accounts receivable collection activity, which Dow utilizes in support of its operating activities.

Free Cash Flow
Dow defines free cash flow as cash flows from operating activities - excluding impact of ASU 2016-15 less capital expenditures. Under this definition, free cash flow represents the cash generated by Dow from operations after investing in its asset base. Free cash flow, combined with cash balances and other sources of liquidity, represent the cash available to fund obligations and provide returns to shareholders. Free cash flow is an integral financial measure used in Dow's financial planning process.

These financial measures are not recognized in accordance with U.S. GAAP and should not be viewed as alternatives to U.S. GAAP financial measures of performance. All companies do not calculate non-GAAP financial measures in the same manner and, accordingly, Dow's definitions may not be consistent with the methodologies used by other companies.

Reconciliation of Non-GAAP Measures
Three Months Ended
Year Ended
Three Months Ended
Year Ended
Three Months Ended
In millions
Mar 31, 2017
Jun 30, 2017
Sep 30, 2017
Dec 31, 2017
Dec 31, 2017
Mar 31, 2018
Jun 30, 2018
Sep 30, 2018
Dec 31, 2018
Dec 31, 2018
Mar 31, 2019
Cash provided by (used for) operating activities - continuing operations (GAAP)
$
(1,204
)
$
(2,550
)
$
99

$
(2,788
)
$
(6,443
)
$
744

$
760

$
203

$
1,389

$
3,096

$
1,043

Impact of ASU 2016-15 and related interpretive guidance
1,997

2,835

2,157

2,473

9,462

445

211

1

—

657

—

Cash flows from operating activities - excluding impact of ASU 2016-15 (Non-GAAP)
$
793

$
285

$
2,256

$
(315
)
$
3,019

$
1,189

$
971

$
204

$
1,389

$
3,753

$
1,043

Capital expenditures
(704
)
(724
)
(575
)
(804
)
(2,807
)
(379
)
(489
)
(577
)
(646
)
(2,091
)
(442
)
Free cash flow (Non-GAAP)
$
89

$
(439
)
$
1,681

$
(1,119
)
$
212

$
810

$
482

$
(373
)
$
743

$
1,662

$
601






31