XML 50 R67.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
SEGMENTS AND GEOGRAPHIC REGIONS (Tables)
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]
Sales are attributed to geographic region based on customer location; long-lived assets are attributed to geographic region based on asset location.

Geographic Region Information
United 
States
EMEAI
Rest of 
World
Total
In millions
2019
 
 
 
 
Sales to external customers
$
14,437

$
14,612

$
13,902

$
42,951

Long-lived assets
$
14,571

$
2,649

$
3,776

$
20,996

2018



 
Sales to external customers
$
16,613

$
17,406

$
15,585

$
49,604

Long-lived assets
$
14,750

$
2,657

$
4,011

$
21,418

2017
 
 
 
 
Sales to external customers
$
15,316

$
15,226

$
13,188

$
43,730

Long-lived assets
$
14,771

$
2,547

$
4,266

$
21,584
Schedule of Segment Reporting Information, by Segment [Table Text Block]
Segment Information
Pack. & Spec. Plastics
Ind. Interm. & Infrast.
Perf. Materials & Coatings
Corp.
Total
In millions
2019
 
 
 
 
 
Net sales
$
20,245

$
13,440

$
8,923

$
343

$
42,951

Pro forma net sales
20,245

13,449

8,961

343

42,998

Restructuring, goodwill impairment and asset related charges - net 1
439

1,175

1,076

529

3,219

Equity in earnings (losses) of nonconsolidated affiliates
162

(241
)
5

(20
)
(94
)
Pro forma Operating EBIT 2
2,904

845

918

(315
)
4,352

Depreciation and amortization
1,435

594

877

32

2,938

Total assets
29,522

11,753

14,059

5,190

60,524

Investments in nonconsolidated affiliates
675

568

101

60

1,404

Capital expenditures
1,039

452

470

—

1,961

2018
 
 
 
 
 
Net sales
$
24,195

$
15,447

$
9,677

$
285

$
49,604

Pro forma net sales
24,237

15,465

9,865

285

49,852

Restructuring, goodwill impairment and asset related charges - net 1
46

11

21

143

221

Equity in earnings (losses) of nonconsolidated affiliates
287

284

4

(20
)
555

Pro forma Operating EBIT 2
3,593

1,767

1,246

(370
)
6,236

Depreciation and amortization
1,385

607

888

29

2,909

Total assets 3
30,279

14,092

16,050

3,378

63,799

Investments in nonconsolidated affiliates
1,278

1,850

99

93

3,320

Capital expenditures
1,231

433

427

—

2,091

2017
 
 
 
 
 
Net sales
$
21,504

$
12,951

$
8,892

$
383

$
43,730

Pro forma net sales
22,546

12,951

8,892

383

44,772

Restructuring, goodwill impairment and asset related charges - net 1
716

17

1,578

428

2,739

Equity in earnings (losses) of nonconsolidated affiliates
190

172

40

(8
)
394

Pro forma Operating EBIT 2
3,712

1,470

817

(422
)
5,577

Depreciation and amortization
1,055

572

885

34

2,546

Total assets 3
30,633

14,115

17,483

4,342

66,573

Investments in nonconsolidated affiliates
1,184

1,700

103

120

3,107

Capital expenditures
2,034

310

463

—

2,807

1.
See Note 7 for information regarding the Company's restructuring programs, goodwill impairment and other asset related charges.
2.
Pro forma Operating EBIT for TDCC in 2019 is substantially the same as that of Dow Inc. (same for 2018 and 2017) and therefore is not disclosed separately in the table above. A reconciliation of "Income (loss) from continuing operations, net of tax" to pro forma Operating EBIT is provided on the following page.
3.
Excludes assets of discontinued operations of $19,900 million and $19,279 million for 2018 and 2017, respectively.
Reconciliation of income from continuing operations, net of tax to Operating EBIT [Table Text Block]
Reconciliation of "Income (loss) from continuing operations, net of tax" to Pro Forma Operating EBIT
2019
2018
2017
In millions
Income (loss) from continuing operations, net of tax
$
(1,717
)
$
2,940

$
(1,287
)
+ Provision for income taxes on continuing operations
470

809

1,524

Income (loss) from continuing operations before income taxes
$
(1,247
)
$
3,749

$
237

- Interest income
81

82

66

+ Interest expense and amortization of debt discount
933

1,063

914

+ Pro forma adjustments 1
65

180

1,120

- Significant items
(4,682
)
(1,326
)
(3,372
)
Pro forma Operating EBIT
$
4,352

$
6,236

$
5,577


1.
Pro forma adjustments include: (1) the margin impact of various manufacturing, supply and service related agreements entered into with DuPont and Corteva in connection with the separation which provide for different pricing than the historical intercompany and intracompany pricing practices of TDCC and Historical DuPont (included for 2019 and 2018 only), (2) the inclusion of ECP for the period of January 1, 2017 through August 31, 2017, (3) the removal of the amortization of ECP's inventory step-up recognized in connection with the Merger (4) the elimination of the impact of events directly attributable to the Merger, internal reorganization and business realignment, separation, distribution and other related transactions (e.g., one-time transaction costs) and (5) the elimination of the effect of a consummated divestiture agreed to with certain regulatory agencies as a condition of approval for the Merger.
Schedule of significant items [Table Text Block]
The following tables summarize the pretax impact of significant items by segment that are excluded from pro forma Operating EBIT:

Significant Items by Segment for 2019
Pack. & Spec. Plastics
Ind. Interm. & Infrast.
Perf. Materials & Coatings
Corp.
Total
In millions
Indemnification and other transaction related costs 1
$
—

$
—

$
—

$
(144
)
$
(144
)
Integration and separation costs 2
—

—

—

(1,013
)
(1,013
)
Restructuring, goodwill impairment and asset related charges - net 3
(439
)
(1,175
)
(1,076
)
(529
)
(3,219
)
Loss on divestitures 4
—

(5
)
—

(44
)
(49
)
Loss on early extinguishment of debt 5
—

—

—

(102
)
(102
)
Environmental charges 6
(5
)
(8
)
(50
)
(336
)
(399
)
Warranty accrual adjustment of exited business 7
—

—

—

39

39

Litigation related charges, awards and adjustments 8
170

—

—

35

205

Total
$
(274
)
$
(1,188
)
$
(1,126
)
$
(2,094
)
$
(4,682
)
1.
Includes charges primarily associated with agreements entered into with DuPont and Corteva as part of the separation and distribution which, among other matters, provides for cross-indemnities and allocations of obligations and liabilities for periods prior to, at and after the completion of the separation.
2.
Costs related to post-Merger integration and business separation activities. Excludes one-time transaction costs directly attributable to the Merger.
3.
Includes Board approved restructuring plans and asset-related charges (see Note 7 for additional information); a charge related to Sadara (see Note 13 for additional information) and an impairment charge related to goodwill associated with the Coatings & Performance Monomers reporting unit (see Note 14 for additional information).
4.
Includes post-closing adjustments on previous divestitures.
5.
The Company retired outstanding long-term debt resulting in a loss on early extinguishment. See Note 16 for additional information.
6.
Related to environmental remediation, primarily resulting from the culmination of long-standing negotiations with regulators and/or agencies and review of additional costs to manage ongoing remediation activities resulting from Dow’s separation from DowDuPont and related agreements with Corteva and DuPont. See Note 17 for additional information.
7.
Includes an adjustment to the warranty accrual of an exited business.
8.
Includes a gain associated with a legal settlement with Nova, as well as a gain related to an adjustment of the Dow Silicones breast implant liability and a charge related to the settlement of the Dow Silicones commercial creditor matters. See Note 17 for additional information.

Significant Items by Segment for 2018
Pack. & Spec. Plastics
Ind. Interm. & Infrast.
Perf. Materials & Coatings
Corp.
Total
In millions
Impact of Dow Silicones ownership restructure 1
$
—

$
—

$
(20
)
$
—

$
(20
)
Integration and separation costs 2
—

—

—

(1,074
)
(1,074
)
Restructuring, goodwill impairment and asset related charges - net 3
(46
)
(11
)
(21
)
(120
)
(198
)
Gain on divestiture 4
—

20

—

—

20

Transaction costs and productivity actions 5
—

—

—

(54
)
(54
)
Total
$
(46
)
$
9

$
(41
)
$
(1,248
)
$
(1,326
)
1.
Includes a loss related to a post-closing adjustment related to the Dow Silicones ownership restructure.    
2.
Costs related to post-Merger integration and separation and distribution activities, and costs related to the Dow Silicones ownership restructure.
3.
Includes Board approved restructuring plans and asset-related charges, which include other asset impairments. See Note 7 for additional information.
4.
Includes a gain related to the Company's sale of its equity interest in MEGlobal.
5.
The Company retired outstanding notes payable resulting in a loss on early extinguishment. See Note 16 for additional information.

Significant Items by Segment for 2017

Pack. & Spec. Plastics
Ind. Interm. & Infrast.
Perf. Materials & Coatings
Corp.
Total
In millions
Litigation related charges, awards and adjustments 1
$
137

$
—

$
—

$
—

$
137

Integration and separation costs 2
—

—

—

(716
)
(716
)
Restructuring, goodwill impairment and asset related charges - net 3
(716
)
(17
)
(1,578
)
(431
)
(2,742
)
Gain on divestiture 4
—

—

—

7

7

Transaction costs and productivity actions 5
—

—

—

(58
)
(58
)
Total
$
(579
)
$
(17
)
$
(1,578
)
$
(1,198
)
$
(3,372
)
1.
Includes a gain associated with a patent infringement matter with Nova. See Note 17 for additional information.
2.
Costs related to post-Merger integration, separation and distribution activities, and costs related to the Dow Silicones ownership restructure.
3.
Includes Board approved restructuring plans, goodwill impairment and asset-related charges, which includes other asset impairments. See Note 7 for additional information.
4.
Includes post-closing adjustments related to the split-off of the Company's chlorine value chain.
5.
Includes implementation costs associated with the Company's restructuring programs and other productivity actions.