SELECTED QUARTERLY FINANCIAL DATA

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]



2019
In millions, except per share amounts (Unaudited)	1st ¹		2nd		3rd		4th			Year
Dow Inc.
Net sales	$	10,969	$	11,014	$	10,764	$	10,204		$	42,951
Cost of sales	$	9,142	$	9,420	$	9,377	$	8,718		$	36,657
Gross margin	$	1,827	$	1,594	$	1,387	$	1,486		$	6,294
Restructuring, goodwill impairment and asset related charges - net ²	$	156	$	65	$	147	$	2,851		$	3,219
Integration and separation costs ³	$	452	$	348	$	164	$	99		$	1,063
Income (loss) from continuing operations, net of tax	$	156	$	90	$	347	$	(2,310	)	$	(1,717	)
Income from discontinued operations net of tax	$	445	$	—	$	—	$	—		$	445
Net income (loss) ⁴	$	601	$	90	$	347	$	(2,310	)	$	(1,272	)
Net income (loss) attributable to Dow Inc.	$	556	$	75	$	333	$	(2,323	)	$	(1,359	)
Earnings (loss) per common share from continuing operations - basic ⁵	$	0.16	$	0.10	$	0.45	$	(3.14	)	$	(2.42	)
Earnings (loss) per common share from continuing operations - diluted ⁵	$	0.16	$	0.10	$	0.45	$	(3.14	)	$	(2.42	)
Dividends declared per share of common stock ⁶	N/A		$	0.70	$	0.70	$	0.70		$	2.10
Market price range of common stock:
High ⁶	N/A		$	59.71	$	52.79	$	55.99		$	59.71
Low ⁶	N/A		$	46.76	$	40.71	$	43.85		$	40.71
TDCC
Net sales	$	10,969	$	11,014	$	10,764	$	10,204		$	42,951
Cost of sales	$	9,142	$	9,419	$	9,377	$	8,719		$	36,657
Gross margin	$	1,827	$	1,595	$	1,387	$	1,485		$	6,294
Restructuring, goodwill impairment and asset related charges - net ²	$	156	$	65	$	147	$	2,851		$	3,219
Integration and separation costs	$	452	$	324	$	164	$	99		$	1,039
Income (loss) from continuing operations, net of tax	$	156	$	217	$	324	$	(2,292	)	$	(1,595	)
Income from discontinued operations net of tax	$	445	$	—	$	—	$	—		$	445
Net income (loss) ³	$	601	$	217	$	324	$	(2,292	)	$	(1,150	)
Net income (loss) attributable to The Dow Chemical Company	$	556	$	202	$	310	$	(2,305	)	$	(1,237	)


1.	The amounts presented for the first quarter of 2019 have been updated from the amounts reported in the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2019, to reflect the effects of the separation from DowDuPont. See reconciliation on the following page.


2.	See Note 7 for additional information.


3.	See Note 4 for additional information.

See Notes 4, 9, 16 and 17 for information on additional items materially impacting "Net income (loss)." The fourth quarter of 2019 included a gain related to the effects of Swiss tax reform and a loss on the early extinguishment of debt. The third quarter of 2019 included a charge related to environmental remediation, a charge related to the settlement of the Dow Silicones commercial creditor matters, a gain related to an adjustment to the Dow Silicones breast implant liability and a gain associated with a legal settlement with Nova. The second quarter of 2019 included charges associated with agreements entered into with DuPont and Corteva as part of the separation from DowDuPont.


5.	Earnings per common share amounts relate only to Dow Inc. as TDCC common shares are not publicly traded and are all owned by Dow Inc. Due to quarterly changes in the share count and the allocation of income to participating securities, the sum of the four quarters does not equal the earnings per share amount calculated for the year.


6.	Dow Inc.'s common stock was solely owned by DowDuPont through March 31, 2019, and on April 1, 2019, Dow Inc. became an independent, publicly traded company.



2018
In millions, except per share amounts (Unaudited)	1st		2nd		3rd		4th		Year
Net sales	$	12,237	$	12,789	$	12,634	$	11,944	$	49,604
Cost of sales	$	9,980	$	10,540	$	10,456	$	10,098	$	41,074
Gross margin	$	2,257	$	2,249	$	2,178	$	1,846	$	8,530
Restructuring, goodwill impairment and asset related charges - net ¹	$	87	$	40	$	48	$	46	$	221
Integration and separation costs ²	$	224	$	262	$	313	$	380	$	1,179
Income from continuing operations, net of tax	$	925	$	810	$	714	$	491	$	2,940
Income from discontinued operations, net of tax	$	514	$	554	$	335	$	432	$	1,835
Net income ³	$	1,439	$	1,364	$	1,049	$	923	$	4,775
Net income attributable to Dow Inc. and The Dow Chemical Company	$	1,404	$	1,333	$	1,013	$	891	$	4,641
Earnings per common share from continuing operations - basic ⁴	$	1.21	$	1.05	$	0.91	$	0.63	$	3.80
Earnings per common share from continuing operations - diluted ⁴	$	1.21	$	1.05	$	0.91	$	0.63	$	3.80


1.	See Note 7 for additional information.


2.	See Note 4 for additional information.


3.	Includes tax adjustments related to The Act, enacted on December 22, 2017. See Note 9 for additional information.


4.	Earnings per common share amounts relate only to Dow Inc. as TDCC common shares are not publicly traded and are all owned by Dow Inc.

Effective with the separation from DowDuPont, the Company's consolidated financial results reflect the distribution of AgCo and SpecCo as discontinued operations, as well as the receipt of ECP as a common control transaction from the closing of the Merger on August 31, 2017. The following table provides the reconciliation of the amounts reported in the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2019, to the amounts presented for the first quarter of 2019 on the previous page. See Note 4 for additional information on the separation from DowDuPont.



Reconciliation - First Quarter 2019	As Filed		Distribution of AgCo and SpecCo			Receipt of ECP		Updated
In millions (Unaudited)	As Filed		Distribution of AgCo and SpecCo			Receipt of ECP		Updated
Net sales	$	13,582	$	(2,954	)	$	341	$	10,969
Cost of sales	$	10,707	$	(1,805	)	$	240	$	9,142
Gross margin	$	2,875	$	(1,149	)	$	101	$	1,827
Restructuring, goodwill impairment and asset related charges - net	$	232	$	(78	)	$	2	$	156
Integration and separation costs	$	408	$	—		$	44	$	452
Income from continuing operations, net of tax	$	586	$	(445	)	$	15	$	156
Income from discontinued operations, net of tax	$	—	$	445		$	—	$	445
Net income	$	586	$	—		$	15	$	601
Net income available for common stockholders	$	541	$	—		$	15	$	556