SEGMENTS AND GEOGRAPHIC REGIONS (Notes)

3 Months Ended

Mar. 31, 2023

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 assesses performance and allocates resources. The Company defines Operating EBIT as earnings (i.e., "Income (loss) 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, 2023
Net sales	$	6,114	$	3,378	$	2,276	$	83	$	11,851
Equity in earnings (losses) of nonconsolidated affiliates	$	21	$	(73)	$	3	$	1	$	(48)
Dow Inc. Operating EBIT 1	$	642	$	123	$	35	$	(92)	$	708
Three months ended Mar 31, 2022
Net sales	$	7,627	$	4,524	$	3,049	$	64	$	15,264
Equity in earnings (losses) of nonconsolidated affiliates	$	110	$	62	$	3	$	(1)	$	174
Dow Inc. Operating EBIT 1	$	1,234	$	661	$	595	$	(71)	$	2,419

1.Operating EBIT for TDCC for the three months ended March 31, 2023 and 2022 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 (loss)" to Operating EBIT is provided in the following table.


Reconciliation of "Net income (loss)" to Operating EBIT	Three Months Ended
In millions	Mar 31, 2023		Mar 31, 2022
Net income (loss)	$	(73)	$	1,552
+ Provision (credit) for income taxes	(47)		503
Income (loss) before income taxes	$	(120)	$	2,055
- Interest income	76		28
+ Interest expense and amortization of debt discount	185		167
- Significant items	(719)		(225)
Operating EBIT	$	708	$	2,419

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, 2023
	Pack. & Spec. Plastics		Ind. Interm. & Infrast.		Perf. Mat. & Coatings		Corp.		Total
In millions

Restructuring, implementation and efficiency costs, and asset related charges - net 1	$	(1)	$	(40)	$	(67)	$	(443)	$	(551)
Litigation related charges, awards and adjustments 2	—		(177)		—		—		(177)

Indemnification and other transaction related costs 3	—		—		—		9		9
Total	$	(1)	$	(217)	$	(67)	$	(434)	$	(719)

1.Includes restructuring charges and implementation and efficiency costs associated with the Company's 2023 Restructuring Program. Also includes certain gains and losses associated with previously impaired equity investments.

2.Includes a loss associated with legacy agricultural products groundwater contamination matters. See Note 8 for additional information.

3.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	Three Months Ended Mar 31, 2022
	Pack. & Spec. Plastics		Ind. Interm. & Infrast.		Perf. Mat. & Coatings		Corp.		Total
In millions
Digitalization program costs 1	$	—	$	—	$	—	$	(41)	$	(41)
Restructuring, implementation costs and asset related charges - net 2	—		—		—		(10)		(10)
Russia / Ukraine conflict charges 3	(31)		(109)		(16)		(30)		(186)
Indemnification and other transactions related costs 4	—		—		—		12		12
Total	$	(31)	$	(109)	$	(16)	$	(69)	$	(225)

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 4 for additional information.

4.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.