SEGMENTS AND GEOGRAPHIC REGIONS (Notes)

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segments and Geographic Regions [Text Block]

SEGMENTS AND GEOGRAPHIC REGIONS

Dow’s measure of profit/loss for segment reporting purposes is Operating EBIT as this is the manner in which the Company's chief operating decision maker ("CODM") assesses performance and allocates resources. The Company defines Operating EBIT as earnings (i.e., "Income before income taxes") before interest, excluding the impact of significant items. Operating EBIT by segment includes all operating items relating to the businesses; items that principally apply to Dow as a whole are assigned to Corporate.

Segment Information	Pack. & Spec. Plastics		Ind. Interm. & Infrast.		Perf. Materials & Coatings		Corp.		Total
In millions
Three months ended Mar 31, 2021
Net sales	$	6,082	$	3,607	$	2,123	$	70	$	11,882
Equity in earnings of nonconsolidated affiliates	$	106	$	115	$	2	$	1	$	224
Dow Inc. Operating EBIT 1	$	1,228	$	326	$	62	$	(62)	$	1,554
Three months ended Mar 31, 2020
Net sales	$	4,609	$	3,045	$	2,065	$	51	$	9,770
Equity in earnings (losses) of nonconsolidated affiliates	$	5	$	(76)	$	1	$	(19)	$	(89)
Dow Inc. Operating EBIT 1	$	580	$	175	$	162	$	(74)	$	843

1.Operating EBIT for TDCC for the three months ended March 31, 2021 and 2020 is substantially the same as that of Dow Inc. and therefore has not been disclosed separately in the table above. A reconciliation of "Net income" to Operating EBIT is provided below.

Reconciliation of "Net income" to Operating EBIT	Three Months Ended
In millions	Mar 31, 2021		Mar 31, 2020
Net income	$	1,006	$	258
+ Provision for income taxes	317		138
Income before income taxes	$	1,323	$	396
- Interest income	8		15
+ Interest expense and amortization of debt discount	196		215
- Significant items	(43)		(247)
Operating EBIT	$	1,554	$	843

The following tables summarize the pretax impact of significant items by segment excluded from Operating EBIT:

Significant Items by Segment	Three Months Ended Mar 31, 2021
	Pack. & Spec. Plastics		Ind. Interm. & Infrast.		Perf. Mat. & Coatings		Corp.		Total
In millions
Restructuring implementation costs 1	$	—	$	—	$	—	$	(10)	$	(10)
Digitalization program costs 2	—		—		—		(33)		(33)
Total	$	—	$	—	$	—	$	(43)	$	(43)

1.Includes costs associated with implementing the Company's 2020 Restructuring Program.

2.Includes costs associated with implementing the Company's digital acceleration program.

Significant Items by Segment	Three Months Ended Mar 31, 2020
	Pack. & Spec. Plastics		Ind. Interm. & Infrast.		Perf. Mat. & Coatings		Corp.		Total
In millions
Integration and separation costs 1	$	—	$	—	$	—	$	(65)	$	(65)
Restructuring and asset related charges - net 2	(6)		—		—		(90)		(96)
Loss on early extinguishment of debt 3	—		—		—		(86)		(86)
Total	$	(6)	$	—	$	—	$	(241)	$	(247)

1.Costs related to business separation activities.

2.Includes Board approved restructuring plans and asset related charges, which include other asset impairments. See Note 5 for additional information.

3.The Company retired outstanding long-term debt resulting in a loss on early extinguishment. See Note 11 for additional information.