SEGMENTS AND GEOGRAPHIC REGIONS (Notes)

12 Months Ended

Dec. 31, 2022

Segments and Geographic Regions [Text Block]

SEGMENTS AND GEOGRAPHIC REGIONS

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	United States		EMEAI		Rest of World		Total
2022
Sales to external customers	$	19,336	$	19,631	$	17,935	$	56,902
Long-lived assets	$	14,638	$	2,578	$	3,226	$	20,442
2021
Sales to external customers	$	18,083	$	19,746	$	17,139	$	54,968
Long-lived assets	$	14,425	$	2,703	$	3,427	$	20,555
2020
Sales to external customers	$	12,547	$	12,969	$	13,026	$	38,542
Long-lived assets	$	13,833	$	2,813	$	3,593	$	20,239

See Part I, Item 1. Business for further discussion of the Company's segments.

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
2022
Net sales	$	29,260	$	16,606	$	10,764	$	272	$	56,902
Restructuring and asset related charges - net 1	8		73		6		31		118
Equity in earnings (losses) of nonconsolidated affiliates	359		(91)		10		(10)		268
Operating EBIT 2	4,110		1,418		1,328		(266)		6,590
Depreciation and amortization	1,396		550		789		23		2,758
Total assets	30,017		12,883		13,028		4,675		60,603
Investments in nonconsolidated affiliates	846		454		115		174		1,589
Capital expenditures	1,069		385		369		—		1,823
2021
Net sales	$	28,128	$	16,851	$	9,672	$	317	$	54,968
Restructuring and asset related charges (credits) - net 1	8		1		10		(13)		6
Equity in earnings of nonconsolidated affiliates	490		471		7		7		975
Operating EBIT 2	6,638		2,282		866		(253)		9,533
Depreciation and amortization	1,358		612		842		30		2,842
Total assets	30,556		13,750		13,810		4,874		62,990
Investments in nonconsolidated affiliates	1,230		670		111		34		2,045
Capital expenditures	808		359		334		—		1,501
2020
Net sales	$	18,301	$	12,021	$	7,951	$	269	$	38,542
Restructuring and asset related charges - net 1	30		22		192		464		708
Equity in earnings (losses) of nonconsolidated affiliates	173		(166)		6		(31)		(18)
Operating EBIT 2	2,325		355		314		(279)		2,715
Depreciation and amortization	1,372		605		870		27		2,874
Total assets	30,069		12,220		13,915		5,266		61,470
Investments in nonconsolidated affiliates	661		531		108		27		1,327
Capital expenditures	678		268		306		—		1,252

1.See Note 5 for information regarding the Company's restructuring programs and other asset related charges.

2.Operating EBIT for TDCC in 2022, 2021 and 2020 is substantially the same as that of Dow Inc. and therefore is not disclosed separately in the table above. A reconciliation of "Net income" to Operating EBIT is provided in the following table.


Reconciliation of "Net income" to Operating EBIT	2022		2021		2020
In millions
Net income	$	4,640	$	6,405	$	1,294
+ Provision for income taxes	1,450		1,740		777
Income before income taxes	$	6,090	$	8,145	$	2,071
- Interest income	173		55		38
+ Interest expense and amortization of debt discount	662		731		827
- Significant items	(11)		(712)		145
Operating EBIT	$	6,590	$	9,533	$	2,715

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


Significant Items by Segment for 2022	Pack. & Spec. Plastics		Ind. Interm. & Infrast.		Perf. Materials & Coatings		Corp.		Total
In millions
Digitalization program costs 1	$	—	$	—	$	—	$	(230)	$	(230)
Restructuring, implementation costs and asset related charges - net 2	—		—		—		(40)		(40)
Russia / Ukraine conflict charges 3	(8)		(73)		(6)		(31)		(118)
Loss on early extinguishment of debt 4	—		—		—		(8)		(8)
Litigation related charges, awards and adjustments 5	321		—		—		60		381
Indemnification and other transaction related costs 6	—		—		—		4		4
Total	$	313	$	(73)	$	(6)	$	(245)	$	(11)

1.Includes costs associated with implementing the Company's Digital Acceleration program.

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

3.Asset related charges due to the Russia and Ukraine conflict. See Note 5 for additional information.

4.The Company redeemed outstanding long-term debt resulting in a loss on early extinguishment. See Note 14 for additional information.

5.Includes a gain associated with a legal matter with Nova Chemicals Corporation and a gain related to an adjustment of the Dow Silicones breast implant liability. See Note 15 for additional information.

6.Primarily related to charges 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.


Significant Items by Segment for 2021	Pack. & Spec. Plastics		Ind. Interm. & Infrast.		Perf. Materials & Coatings		Corp.		Total
In millions
Digitalization program costs 1	$	—	$	—	$	—	$	(169)	$	(169)
Restructuring, implementation costs and asset related charges - net 2	(8)		(1)		(10)		(50)		(69)
Loss on early extinguishment of debt 3	—		—		—		(574)		(574)
Net gain on divestitures and asset sale 4	16		—		—		—		16
Litigation related charges, awards and adjustments 5	—		54		—		—		54
Indemnification and other transaction related costs 6	—		—		—		30		30
Total	$	8	$	53	$	(10)	$	(763)	$	(712)

1.Includes costs associated with implementing the Company's Digital Acceleration program.

2.Includes costs associated with implementing the Company's 2020 Restructuring Program, and asset-related charges, which include other asset impairments. See Note 5 for additional information.

3.The Company redeemed outstanding long-term debt resulting in a loss on early extinguishment. See Note 14 for additional information.

4.Includes post-closing adjustments on a previous divestiture.

5.Related to an arbitration award received from Luxi Chemical Group Co., Ltd. See Note 15 for additional information.


Significant Items by Segment for 2020	Pack. & Spec. Plastics		Ind. Interm. & Infrast.		Perf. Materials & Coatings		Corp.		Total
In millions
Integration and separation costs 1	$	—	$	—	$	—	$	(239)	$	(239)
Restructuring, implementation costs and asset related charges - net 2	(30)		(22)		(192)		(474)		(718)
Warranty accrual adjustment of exited business 3	—		—		—		11		11
Net gain on divestitures and asset sale 4	52		61		—		604		717
Litigation related charges, awards and adjustments 5	544		—		—		—		544
Loss on early extinguishment of debt 6	—		—		—		(149)		(149)
Indemnification and other transaction related costs 7	—		—		—		(21)		(21)
Total	$	566	$	39	$	(192)	$	(268)	$	145

1.Costs related to business separation activities.

2.Includes costs associated with implementing the Company's 2020 Restructuring Program, and asset-related charges, which include other asset impairments. See Note 5 for additional information.

3.Includes an adjustment to the warranty accrual of an exited business.

4.Primarily related to a gain on the sale of rail infrastructure in the U.S. and Canada and a gain on the sale of marine and terminal operations and assets in the U.S. See Notes 4 and 6 for additional information.

5.Includes recognition of gains associated with a legal matter with Nova. See Note 15 for additional information.

6.The Company redeemed outstanding long-term debt resulting in a loss on early extinguishment. See Note 14 for additional information.

7.Primarily related to charges 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.