Delaware | 81-1224539 | |||||||||||||
State or other jurisdiction of incorporation or organization | (I.R.S. Employer Identification No.) |
974 Centre Road | Building 730 | Wilmington | Delaware | 19805 | ||||||||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, par value $0.01 per share | DD | New York Stock Exchange |
Large | Accelerated filer | ¨ | |||||||||||||||||||||
Non-accelerated filer | ¨ | Smaller reporting company | |||||||||||||||||||||
Emerging growth company |
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Item 1A. | ||||||||
Item 2. | ||||||||
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Item 6. | ||||||||
PART I - FINANCIAL INFORMATION |
Three Months Ended | Nine Months Ended | |||||||||||
In millions, except per share amounts (Unaudited) | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||||||
Net sales | $ | 15,354 | $ | 12,483 | $ | 42,418 | $ | 35,138 | ||||
Cost of sales | 12,170 | 9,840 | 33,130 | 27,066 | ||||||||
Research and development expenses | 522 | 399 | 1,343 | 1,159 | ||||||||
Selling, general and administrative expenses | 990 | 738 | 2,468 | 2,166 | ||||||||
Amortization of intangibles | 244 | 162 | 556 | 387 | ||||||||
Restructuring and asset related charges - net | 179 | — | 166 | 452 | ||||||||
Integration and separation costs | 354 | 127 | 599 | 228 | ||||||||
Equity in earnings of nonconsolidated affiliates | 152 | 70 | 402 | 191 | ||||||||
Sundry income (expense) - net | 361 | 22 | 237 | 1,369 | ||||||||
Interest expense and amortization of debt discount | 283 | 220 | 728 | 629 | ||||||||
Income from continuing operations before income taxes | 1,125 | 1,089 | 4,067 | 4,611 | ||||||||
Provision for income taxes on continuing operations | 571 | 271 | 1,239 | 291 | ||||||||
Income from continuing operations, net of tax | 554 | 818 | 2,828 | 4,320 | ||||||||
Loss from discontinued operations, net of tax | (20 | ) | — | (20 | ) | — | ||||||
Net income | 534 | 818 | 2,808 | 4,320 | ||||||||
Net income attributable to noncontrolling interests | 20 | 14 | 85 | 54 | ||||||||
Net income attributable to DowDuPont Inc. | 514 | 804 | 2,723 | 4,266 | ||||||||
Preferred stock dividends | — | 85 | — | 255 | ||||||||
Net income available for DowDuPont Inc. common stockholders | $ | 514 | $ | 719 | $ | 2,723 | $ | 4,011 | ||||
Per common share data: | ||||||||||||
Earnings per common share from continuing operations - basic | $ | 0.33 | $ | 0.64 | $ | 2.05 | $ | 3.60 | ||||
Loss per common share from discontinued operations - basic | (0.01 | ) | — | (0.01 | ) | — | ||||||
Earnings per common share - basic | $ | 0.32 | $ | 0.64 | $ | 2.04 | $ | 3.60 | ||||
Earnings per common share from continuing operations - diluted | $ | 0.33 | $ | 0.63 | $ | 2.02 | $ | 3.48 | ||||
Loss per common share from discontinued operations - diluted | (0.01 | ) | — | (0.01 | ) | — | ||||||
Earnings per common share - diluted | $ | 0.32 | $ | 0.63 | $ | 2.01 | $ | 3.48 | ||||
Dividends declared per share of common stock | $ | 0.46 | $ | 0.46 | $ | 1.38 | $ | 1.38 | ||||
Weighted-average common shares outstanding - basic | 1,577.8 | 1,112.4 | 1,330.7 | 1,108.8 | ||||||||
Weighted-average common shares outstanding - diluted | 1,595.3 | 1,127.4 | 1,348.8 | 1,220.4 | ||||||||
Depreciation | $ | 708 | $ | 573 | $ | 1,820 | $ | 1,540 | ||||
Capital Expenditures | $ | 752 | $ | 1,060 | $ | 2,301 | $ | 2,877 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
In millions, except per share amounts (Unaudited) | 2021 | 2020 | 2021 | 2020 | ||||||||||
Net sales | $ | 4,271 | $ | 3,629 | $ | 12,382 | $ | 10,588 | ||||||
Cost of sales | 2,778 | 2,417 | 7,945 | 7,034 | ||||||||||
Research and development expenses | 152 | 140 | 456 | 466 | ||||||||||
Selling, general and administrative expenses | 475 | 403 | 1,390 | 1,299 | ||||||||||
Amortization of intangibles | 196 | 172 | 530 | 527 | ||||||||||
Restructuring and asset related charges - net | 1 | 378 | 13 | 800 | ||||||||||
Goodwill impairment charges | — | 183 | — | 3,214 | ||||||||||
Acquisition, integration and separation costs | 29 | 22 | 58 | 161 | ||||||||||
Equity in earnings of nonconsolidated affiliates | 25 | 29 | 76 | 170 | ||||||||||
Sundry income (expense) - net | 8 | 430 | 170 | 631 | ||||||||||
Interest expense | 115 | 165 | 390 | 517 | ||||||||||
Income (loss) from continuing operations before income taxes | 558 | 208 | 1,846 | (2,629) | ||||||||||
Provision for income taxes on continuing operations | 125 | 122 | 308 | 224 | ||||||||||
Income (loss) from continuing operations, net of tax | 433 | 86 | 1,538 | (2,853) | ||||||||||
(Loss) income from discontinued operations, net of tax | (29) | (158) | 4,751 | (300) | ||||||||||
Net income (loss) | 404 | (72) | 6,289 | (3,153) | ||||||||||
Net income attributable to noncontrolling interests | 13 | 7 | 26 | 20 | ||||||||||
Net income (loss) available for DuPont common stockholders | $ | 391 | $ | (79) | $ | 6,263 | $ | (3,173) | ||||||
Per common share data: | ||||||||||||||
Earnings (loss) per common share from continuing operations - basic | $ | 0.81 | $ | 0.11 | $ | 2.74 | $ | (3.90) | ||||||
(Loss) earnings per common share from discontinued operations - basic | (0.06) | (0.22) | 8.61 | (0.41) | ||||||||||
Earnings (loss) per common share - basic | $ | 0.75 | $ | (0.11) | $ | 11.35 | $ | (4.31) | ||||||
Earnings (loss) per common share from continuing operations - diluted | $ | 0.80 | $ | 0.11 | $ | 2.73 | $ | (3.90) | ||||||
(Loss) earnings per common share from discontinued operations - diluted | (0.06) | (0.21) | 8.59 | (0.41) | ||||||||||
Earnings (loss) per common share - diluted | $ | 0.75 | $ | (0.11) | $ | 11.32 | $ | (4.31) | ||||||
Weighted-average common shares outstanding - basic | 521.5 | 734.4 | 551.7 | 735.8 | ||||||||||
Weighted-average common shares outstanding - diluted | 523.1 | 734.9 | 553.1 | 735.8 |
Three Months Ended | Nine Months Ended | |||||||||||
In millions (Unaudited) | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||||||
Net Income | $ | 534 | $ | 818 | $ | 2,808 | $ | 4,320 | ||||
Other comprehensive income (loss), net of tax | ||||||||||||
Unrealized gains (losses) on investments | (51 | ) | 8 | (43 | ) | 42 | ||||||
Cumulative translation adjustments | (379 | ) | 83 | 247 | 325 | |||||||
Pension and other postretirement benefit plans | 105 | 93 | 308 | 640 | ||||||||
Derivative instruments | 32 | (20 | ) | (57 | ) | (21 | ) | |||||
Total other comprehensive income (loss) | (293 | ) | 164 | 455 | 986 | |||||||
Comprehensive Income | 241 | 982 | 3,263 | 5,306 | ||||||||
Comprehensive income attributable to noncontrolling interests, net of tax | 26 | 35 | 119 | 103 | ||||||||
Comprehensive Income Attributable to DowDuPont Inc. | $ | 215 | $ | 947 | $ | 3,144 | $ | 5,203 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
In millions (Unaudited) | 2021 | 2020 | 2021 | 2020 | ||||||||||
Net income (loss) | $ | 404 | $ | (72) | $ | 6,289 | $ | (3,153) | ||||||
Other comprehensive (loss) income, net of tax | ||||||||||||||
Cumulative translation adjustments | (189) | 606 | (554) | 547 | ||||||||||
Pension and other post-employment benefit plans | 12 | 4 | 23 | 9 | ||||||||||
Derivative instruments | 20 | — | 38 | — | ||||||||||
Split-off of N&B | — | — | 258 | — | ||||||||||
Total other comprehensive (loss) income | (157) | 610 | (235) | 556 | ||||||||||
Comprehensive income (loss) | 247 | 538 | 6,054 | (2,597) | ||||||||||
Comprehensive income attributable to noncontrolling interests, net of tax | 12 | 11 | 17 | 19 | ||||||||||
Comprehensive income (loss) attributable to DuPont | $ | 235 | $ | 527 | $ | 6,037 | $ | (2,616) |
In millions, except per share amounts (Unaudited) | Sep 30, 2017 | Dec 31, 2016 | ||||
Assets | ||||||
Current Assets | ||||||
Cash and cash equivalents (variable interest entities restricted - 2017: $115; 2016: $75) | $ | 13,148 | $ | 6,607 | ||
Marketable securities | 1,826 | — | ||||
Accounts and notes receivable: | ||||||
Trade (net of allowance for doubtful receivables - 2017: $171; 2016: $110) | 11,250 | 4,666 | ||||
Other | 7,006 | 4,312 | ||||
Inventories | 17,255 | 7,363 | ||||
Other current assets | 1,145 | 711 | ||||
Assets held for sale | 3,171 | — | ||||
Total current assets | 54,801 | 23,659 | ||||
Investments | ||||||
Investment in nonconsolidated affiliates | 5,650 | 3,747 | ||||
Other investments (investments carried at fair value - 2017: $1,408; 2016: $1,959) | 2,450 | 2,969 | ||||
Noncurrent receivables | 743 | 708 | ||||
Total investments | 8,843 | 7,424 | ||||
Property | ||||||
Property | 72,227 | 57,438 | ||||
Less accumulated depreciation | 36,008 | 33,952 | ||||
Net property (variable interest entities restricted - 2017: $925; 2016: $961) | 36,219 | 23,486 | ||||
Other Assets | ||||||
Goodwill | 60,698 | 15,272 | ||||
Other intangible assets (net of accumulated amortization - 2017: $4,990; 2016: $4,295) | 33,420 | 6,026 | ||||
Deferred income tax assets | 1,810 | 3,079 | ||||
Deferred charges and other assets | 2,736 | 565 | ||||
Total other assets | 98,664 | 24,942 | ||||
Total Assets | $ | 198,527 | $ | 79,511 | ||
Liabilities and Equity | ||||||
Current Liabilities | ||||||
Notes payable | $ | 5,176 | $ | 272 | ||
Long-term debt due within one year | 1,906 | 635 | ||||
Accounts payable: | ||||||
Trade | 7,648 | 4,519 | ||||
Other | 3,862 | 2,097 | ||||
Income taxes payable | 729 | 600 | ||||
Accrued and other current liabilities | 7,849 | 4,481 | ||||
Liabilities held for sale | 108 | — | ||||
Total current liabilities | 27,278 | 12,604 | ||||
Long-Term Debt (variable interest entities nonrecourse - 2017: $310; 2016: $330) | 29,819 | 20,456 | ||||
Other Noncurrent Liabilities | ||||||
Deferred income tax liabilities | 9,125 | 923 | ||||
Pension and other postretirement benefits - noncurrent | 18,413 | 11,375 | ||||
Asbestos-related liabilities - noncurrent | 1,266 | 1,364 | ||||
Other noncurrent obligations | 8,092 | 5,560 | ||||
Total other noncurrent liabilities | 36,896 | 19,222 | ||||
Stockholders' Equity | ||||||
Common stock (2017: authorized 5,000,000,000 shares of $0.01 par value each, issued 2,339,396,931 shares; 2016: authorized 1,500,000,000 shares of $2.50 par value each, issued 1,242,794,836) | 23 | 3,107 | ||||
Additional paid-in capital | 81,116 | 4,262 | ||||
Retained earnings | 31,366 | 30,338 | ||||
Accumulated other comprehensive loss | (9,367 | ) | (9,822 | ) | ||
Unearned ESOP shares | (192 | ) | (239 | ) | ||
Treasury stock at cost (2017: zero shares; 2016: 31,661,501 shares) | — | (1,659 | ) | |||
DowDuPont's stockholders' equity | 102,946 | 25,987 | ||||
Noncontrolling interests | 1,588 | 1,242 | ||||
Total equity | 104,534 | 27,229 | ||||
Total Liabilities and Equity | $ | 198,527 | $ | 79,511 |
In millions, except share amounts (Unaudited) | September 30, 2021 | December 31, 2020 | ||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 1,670 | $ | 2,544 | ||||
Accounts and notes receivable - net | 2,908 | 2,421 | ||||||
Inventories | 2,844 | 2,393 | ||||||
Other current assets | 225 | 181 | ||||||
Assets held for sale | 850 | 810 | ||||||
Assets of discontinued operations | — | 20,659 | ||||||
Total current assets | 8,497 | 29,008 | ||||||
Property, plant and equipment - net of accumulated depreciation (September 30, 2021 - $4,599; December 31, 2020 - $4,256) | 6,921 | 6,867 | ||||||
Other Assets | ||||||||
Goodwill | 19,688 | 18,702 | ||||||
Other intangible assets | 8,644 | 8,072 | ||||||
Restricted cash and cash equivalents | 50 | 6,206 | ||||||
Investments and noncurrent receivables | 1,029 | 1,047 | ||||||
Deferred income tax assets | 175 | 190 | ||||||
Deferred charges and other assets | 1,011 | 812 | ||||||
Total other assets | 30,597 | 35,029 | ||||||
Total Assets | $ | 46,015 | $ | 70,904 | ||||
Liabilities and Equity | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 2,538 | $ | 2,222 | ||||
Income taxes payable | 206 | 169 | ||||||
Accrued and other current liabilities | 1,335 | 1,085 | ||||||
Liabilities related to assets held for sale | 142 | 140 | ||||||
Liabilities of discontinued operations | — | 8,610 | ||||||
Total current liabilities | 4,221 | 12,226 | ||||||
Long-Term Debt | 10,629 | 15,611 | ||||||
Other Noncurrent Liabilities | ||||||||
Deferred income tax liabilities | 2,014 | 2,053 | ||||||
Pension and other post-employment benefits - noncurrent | 1,017 | 1,110 | ||||||
Other noncurrent obligations | 895 | 834 | ||||||
Total other noncurrent liabilities | 3,926 | 3,997 | ||||||
Total Liabilities | 18,776 | 31,834 | ||||||
Commitments and contingent liabilities | 0 | 0 | ||||||
Stockholders' Equity | ||||||||
Common stock (authorized 1,666,666,667 shares of $0.01 par value each; issued 2021: 518,103,127 shares; 2020: 734,204,054 shares) | 5 | 7 | ||||||
Additional paid-in capital | 49,702 | 50,039 | ||||||
Accumulated deficit | (22,892) | (11,586) | ||||||
Accumulated other comprehensive (loss) income | (182) | 44 | ||||||
Total DuPont stockholders' equity | 26,633 | 38,504 | ||||||
Noncontrolling interests | 606 | 566 | ||||||
Total equity | 27,239 | 39,070 | ||||||
Total Liabilities and Equity | $ | 46,015 | $ | 70,904 |
Nine Months Ended September 30, | ||||||||
In millions (Unaudited) | 2021 | 2020 | ||||||
Operating Activities | ||||||||
Net income (loss) | $ | 6,289 | $ | (3,153) | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 1,094 | 2,326 | ||||||
Credit for deferred income tax and other tax related items | (182) | (481) | ||||||
Earnings of nonconsolidated affiliates in excess of dividends received | (41) | (120) | ||||||
Net periodic pension benefit cost | 1 | 30 | ||||||
Pension contributions | (59) | (77) | ||||||
Net gain on sales and split-offs of assets, businesses and investments | (5,117) | (612) | ||||||
Restructuring and asset related charges - net | 15 | 807 | ||||||
Goodwill impairment charges | — | 3,214 | ||||||
Inventory step-up amortization | 12 | — | ||||||
Other net loss | 126 | 127 | ||||||
Changes in assets and liabilities, net of effects of acquired and divested companies: | ||||||||
Accounts and notes receivable | (399) | 133 | ||||||
Inventories | (515) | 312 | ||||||
Accounts payable | 379 | 43 | ||||||
Other assets and liabilities, net | 57 | 245 | ||||||
Cash provided by operating activities | 1,660 | 2,794 | ||||||
Investing Activities | ||||||||
Capital expenditures | (707) | (922) | ||||||
Proceeds from sales of property and businesses, net of cash divested | 285 | 1,008 | ||||||
Acquisitions of property and businesses, net of cash acquired | (2,323) | (73) | ||||||
Purchases of investments | (2,001) | (1) | ||||||
Proceeds from sales and maturities of investments | 2,001 | 1 | ||||||
Other investing activities, net | 18 | 22 | ||||||
Cash (used for) provided by investing activities | (2,727) | 35 | ||||||
Financing Activities | ||||||||
Changes in short-term notes payable | — | (1,439) | ||||||
Proceeds from issuance of long-term debt | — | 8,275 | ||||||
Proceeds from issuance of long-term debt transferred to IFF at split-off | 1,250 | — | ||||||
Payments on long-term debt | (5,000) | (29) | ||||||
Purchases of common stock | (1,643) | (232) | ||||||
Proceeds from issuance of Company stock | 110 | 34 | ||||||
Employee taxes paid for share-based payment arrangements | (26) | (14) | ||||||
Distributions to noncontrolling interests | (34) | (48) | ||||||
Dividends paid to stockholders | (476) | (662) | ||||||
Cash transferred to IFF at split-off | (100) | — | ||||||
Other financing activities, net | (2) | (55) | ||||||
Cash (used for) provided by financing activities | (5,921) | 5,830 | ||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (49) | 4 | ||||||
(Decrease) increase in cash, cash equivalents and restricted cash | (7,037) | 8,663 | ||||||
Cash, cash equivalents and restricted cash from continuing operations, beginning of period | 8,767 | 1,569 | ||||||
Cash, cash equivalents and restricted cash from discontinued operations, beginning of period | 8 | 8 | ||||||
Cash, cash equivalents and restricted cash at beginning of period | 8,775 | 1,577 | ||||||
Cash, cash equivalents and restricted cash from continuing operations, end of period | 1,738 | 10,233 | ||||||
Cash, cash equivalents and restricted cash from discontinued operations, end of period | — | 7 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 1,738 | $ | 10,240 |
Nine Months Ended | ||||||
In millions (Unaudited) | Sep 30, 2017 | Sep 30, 2016 | ||||
Operating activities | ||||||
Net income | $ | 2,808 | $ | 4,320 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 2,518 | 2,067 | ||||
Provision (credit) for deferred income tax | 570 | (990 | ) | |||
Earnings of nonconsolidated affiliates less than dividends received | 201 | 341 | ||||
Net periodic pension benefit cost | 306 | 312 | ||||
Pension contributions | (463 | ) | (567 | ) | ||
Net gain on sales of assets, businesses and investments | (475 | ) | (179 | ) | ||
Net gain on step acquisition of nonconsolidated affiliate | — | (2,445 | ) | |||
Restructuring and asset related charges - net | 166 | 452 | ||||
Amortization of inventory step-up | 429 | — | ||||
Other net loss | 228 | 300 | ||||
Changes in assets and liabilities, net of effects of acquired and divested companies: | ||||||
Accounts and notes receivable | (2,154 | ) | (1,435 | ) | ||
Proceeds from interests in trade accounts receivable conduits | 939 | 882 | ||||
Inventories | (1,490 | ) | (39 | ) | ||
Accounts payable | 1,627 | 1,031 | ||||
Other assets and liabilities, net | (741 | ) | (331 | ) | ||
Cash provided by operating activities | 4,469 | 3,719 | ||||
Investing activities | ||||||
Capital expenditures | (2,301 | ) | (2,877 | ) | ||
Investment in gas field developments | (98 | ) | (81 | ) | ||
Construction of assets pending sale / leaseback | — | (12 | ) | |||
Proceeds from sale / leaseback of assets | — | 32 | ||||
Purchases of previously leased assets | (2 | ) | — | |||
Payment into escrow account | (130 | ) | (835 | ) | ||
Distribution from escrow account | 130 | 835 | ||||
Proceeds from sales of property and businesses, net of cash divested | 522 | 217 | ||||
Acquisitions of property and businesses, net of cash acquired | (28 | ) | (187 | ) | ||
Cash acquired in merger transaction | 4,005 | — | ||||
Cash acquired in step acquisition of nonconsolidated affiliate | — | 1,050 | ||||
Investments in and loans to nonconsolidated affiliates | (694 | ) | (831 | ) | ||
Distributions and loan repayments from nonconsolidated affiliates | 56 | 10 | ||||
Proceeds from sale of ownership interests in nonconsolidated affiliates | 64 | — | ||||
Purchases of investments | (476 | ) | (426 | ) | ||
Proceeds from sales and maturities of investments | 2,088 | 607 | ||||
Other investing activities, net | (2 | ) | — | |||
Cash provided by (used for) investing activities | 3,134 | (2,498 | ) | |||
Financing activities | ||||||
Changes in short-term notes payable | 953 | (69 | ) | |||
Proceeds from issuance of long-term debt | — | 32 | ||||
Payments on long-term debt | (591 | ) | (523 | ) | ||
Purchases of treasury stock | — | (416 | ) | |||
Proceeds from issuance of company stock | 32 | — | ||||
Proceeds from sales of common stock | 423 | 320 | ||||
Employee taxes paid for share-based payment arrangements | (89 | ) | (65 | ) | ||
Distributions to noncontrolling interests | (58 | ) | (85 | ) | ||
Purchases of noncontrolling interests | — | (202 | ) | |||
Dividends paid to stockholders | (1,947 | ) | (1,782 | ) | ||
Other financing activities, net | (2 | ) | (2 | ) | ||
Cash used for financing activities | (1,279 | ) | (2,792 | ) | ||
Effect of exchange rate changes on cash | 254 | 26 | ||||
Cash reclassified as held for sale | (37 | ) | — | |||
Increase (decrease) in cash and cash equivalents | 6,541 | (1,545 | ) | |||
Cash and cash equivalents at beginning of year | 6,607 | 8,577 | ||||
Cash and cash equivalents at end of period | $ | 13,148 | $ | 7,032 |
In millions (Unaudited) | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comp Loss | Treasury Stock | Non-controlling Interests | Total Equity | ||||||||||||||||
Balance at December 31, 2019 | $ | 7 | $ | 50,796 | $ | (8,400) | $ | (1,416) | $ | — | $ | 569 | $ | 41,556 | |||||||||
Adoption of accounting standards | — | — | (3) | — | — | — | (3) | ||||||||||||||||
Net (loss) income | — | — | (3,173) | — | — | 20 | (3,153) | ||||||||||||||||
Other comprehensive income (loss) | — | — | — | 557 | — | (1) | 556 | ||||||||||||||||
Dividends ($0.90 per common share) | — | (662) | — | — | — | — | (662) | ||||||||||||||||
Common stock issued/sold | — | 34 | — | — | — | — | 34 | ||||||||||||||||
Stock-based compensation | — | 81 | — | — | — | — | 81 | ||||||||||||||||
Contributions from non-controlling interests | — | — | — | — | — | 19 | 19 | ||||||||||||||||
Distributions to non-controlling interests | — | — | — | — | — | (48) | (48) | ||||||||||||||||
Purchases of treasury stock | — | — | — | — | (232) | — | (232) | ||||||||||||||||
Retirement of treasury stock | — | — | (232) | — | 232 | — | — | ||||||||||||||||
Other | — | (30) | — | — | — | — | (30) | ||||||||||||||||
Balance at September 30, 2020 | $ | 7 | $ | 50,219 | $ | (11,808) | $ | (859) | $ | — | $ | 559 | $ | 38,118 | |||||||||
Balance at December 31, 2020 | $ | 7 | $ | 50,039 | $ | (11,586) | $ | 44 | $ | — | $ | 566 | $ | 39,070 | |||||||||
Net income | — | — | 6,263 | — | — | 26 | 6,289 | ||||||||||||||||
Other comprehensive loss | — | — | — | (226) | — | (9) | (235) | ||||||||||||||||
Dividends ($0.90 per common share) | — | (476) | — | — | — | — | (476) | ||||||||||||||||
Common stock issued/sold | — | 110 | — | — | — | — | 110 | ||||||||||||||||
Stock-based compensation | — | 30 | — | — | — | — | 30 | ||||||||||||||||
Contributions from non-controlling interests | — | — | — | — | — | 84 | 84 | ||||||||||||||||
Distributions to non-controlling interests | — | — | — | — | — | (34) | (34) | ||||||||||||||||
Purchases of treasury stock | — | — | — | — | (1,643) | — | (1,643) | ||||||||||||||||
Retirement of treasury stock | — | — | (1,643) | — | 1,643 | — | — | ||||||||||||||||
Split-off of N&B | (2) | — | (15,926) | — | — | (27) | (15,955) | ||||||||||||||||
Other | — | (1) | — | — | — | — | (1) | ||||||||||||||||
Balance at September 30, 2021 | $ | 5 | $ | 49,702 | $ | (22,892) | $ | (182) | $ | — | $ | 606 | $ | 27,239 |
In millions (Unaudited) | Preferred Stock | Common Stock | Add'l Paid in Capital | Retained Earnings | Accum Other Comp Loss | Unearned ESOP | Treasury Stock | Non-controlling Interests | Total Equity | ||||||||||||||||||
2016 | |||||||||||||||||||||||||||
Balance at Jan 1, 2016 | $ | 4,000 | $ | 3,107 | $ | 4,936 | $ | 28,425 | $ | (8,667 | ) | $ | (272 | ) | $ | (6,155 | ) | $ | 809 | $ | 26,183 | ||||||
Net income available for DowDuPont Inc. common stockholders | — | — | — | 4,011 | — | — | — | — | 4,011 | ||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | 986 | — | — | — | 986 | ||||||||||||||||||
Dividends ($1.38 per common share) | — | — | — | (1,531 | ) | — | — | — | — | (1,531 | ) | ||||||||||||||||
Common stock issued/sold | — | — | 320 | — | — | — | 606 | — | 926 | ||||||||||||||||||
Stock-based compensation and allocation of ESOP shares | — | — | (340 | ) | — | — | 46 | — | — | (294 | ) | ||||||||||||||||
Impact of noncontrolling interests | — | — | — | — | — | — | — | 505 | 505 | ||||||||||||||||||
Treasury stock purchases | — | — | — | — | — | — | (416 | ) | — | (416 | ) | ||||||||||||||||
Other | — | — | — | (21 | ) | — | — | — | — | (21 | ) | ||||||||||||||||
Balance at Sep 30, 2016 | $ | 4,000 | $ | 3,107 | $ | 4,916 | $ | 30,884 | $ | (7,681 | ) | $ | (226 | ) | $ | (5,965 | ) | $ | 1,314 | $ | 30,349 | ||||||
2017 | |||||||||||||||||||||||||||
Balance at Jan 1, 2017 | $ | — | $ | 3,107 | $ | 4,262 | $ | 30,338 | $ | (9,822 | ) | $ | (239 | ) | $ | (1,659 | ) | $ | 1,242 | $ | 27,229 | ||||||
Net income available for DowDuPont Inc. common stockholders | — | — | — | 2,723 | — | — | — | — | 2,723 | ||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | 455 | — | — | — | 455 | ||||||||||||||||||
Dividends ($1.38 per common share) | — | — | — | (1,673 | ) | — | — | — | — | (1,673 | ) | ||||||||||||||||
Common stock issued/sold | — | — | 455 | — | — | — | 724 | — | 1,179 | ||||||||||||||||||
Stock-based compensation and allocation of ESOP shares | — | — | (428 | ) | — | — | 47 | — | — | (381 | ) | ||||||||||||||||
Impact of noncontrolling interests | — | — | — | — | — | — | — | 346 | 346 | ||||||||||||||||||
Merger impact | — | (3,084 | ) | 76,829 | — | — | — | 935 | — | 74,680 | |||||||||||||||||
Other | — | — | (2 | ) | (22 | ) | — | — | — | — | (24 | ) | |||||||||||||||
Balance at Sep 30, 2017 | $ | — | $ | 23 | $ | 81,116 | $ | 31,366 | $ | (9,367 | ) | $ | (192 | ) | $ | — | $ | 1,588 | $ | 104,534 |
In millions (Unaudited) | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comp Loss | Treasury Stock | Non-controlling Interests | Total Equity | ||||||||||||||||
Balance at June 30, 2020 | $ | 7 | $ | 50,191 | $ | (11,728) | $ | (1,465) | $ | — | $ | 572 | $ | 37,577 | |||||||||
Net (loss) income | — | — | (79) | — | — | 7 | (72) | ||||||||||||||||
Other comprehensive income | — | — | — | 606 | — | 4 | 610 | ||||||||||||||||
Stock-based compensation | — | 24 | — | — | — | — | 24 | ||||||||||||||||
Contributions from non-controlling interests | — | — | — | — | — | 14 | 14 | ||||||||||||||||
Distributions to non-controlling interests | — | — | — | — | — | (38) | (38) | ||||||||||||||||
Other | — | 4 | (1) | — | — | — | 3 | ||||||||||||||||
Balance at September 30, 2020 | $ | 7 | $ | 50,219 | $ | (11,808) | $ | (859) | $ | — | $ | 559 | $ | 38,118 | |||||||||
Balance at June 30, 2021 | $ | 5 | $ | 49,681 | $ | (22,783) | $ | (26) | $ | — | $ | 587 | $ | 27,464 | |||||||||
Net income | — | — | 391 | — | — | 13 | 404 | ||||||||||||||||
Other comprehensive loss | — | — | — | (156) | — | (1) | (157) | ||||||||||||||||
Common stock issued/sold | — | 2 | — | — | — | — | 2 | ||||||||||||||||
Stock-based compensation | — | 17 | — | — | — | — | 17 | ||||||||||||||||
Contributions from non-controlling interests | — | — | — | — | — | 17 | 17 | ||||||||||||||||
Distributions to non-controlling interests | — | — | — | — | — | (10) | (10) | ||||||||||||||||
Purchases of treasury stock | — | — | — | — | (500) | — | (500) | ||||||||||||||||
Retirement of treasury stock | — | — | (500) | — | 500 | — | — | ||||||||||||||||
Other | — | 2 | — | — | — | — | 2 | ||||||||||||||||
Balance at September 30, 2021 | $ | 5 | $ | 49,702 | $ | (22,892) | $ | (182) | $ | — | $ | 606 | $ | 27,239 |
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Summary of Changes to the Consolidated Statements of Cash Flows | Nine Months Ended | |||||
Sep 30, 2016 | ||||||
In millions | As Filed | Updated | ||||
Operating Activities | ||||||
Excess tax benefits from share-based payment arrangements | $ | (39 | ) | $ | — | |
Other assets and liabilities, net | $ | 455 | $ | 520 | ||
Cash provided by operating activities | $ | 3,615 | $ | 3,719 | ||
Financing Activities | ||||||
Excess tax benefits from share-based payment arrangements | $ | 39 | $ | — | ||
Employee taxes paid for share-based payment arrangements | $ | — | $ | (65 | ) | |
Cash used in financing activities | $ | (2,688 | ) | $ | (2,792 | ) |
Summary of Changes to the Consolidated Statements of Income | Three Months Ended | Nine Months Ended | ||||||||||
Sep 30, 2016 | Sep 30, 2016 | |||||||||||
In millions | As Filed | Updated | As Filed | Updated | ||||||||
Cost of sales | $ | 9,841 | $ | 9,840 | $ | 27,067 | $ | 27,066 | ||||
Selling, general and administrative expenses | $ | 864 | $ | 738 | $ | 2,393 | $ | 2,166 | ||||
Integration and separation costs | $ | — | $ | 127 | $ | — | $ | 228 | ||||
Sundry income (expense) - net | $ | (4 | ) | $ | 22 | $ | 1,305 | $ | 1,369 | |||
Interest income | $ | 26 | $ | — | $ | 64 | $ | — |
Summary of Changes to the Consolidated Balance Sheets | Dec 31, 2016 | |||||
In millions | As Filed | Updated | ||||
Accounts and notes receivable - Other | $ | 4,358 | $ | 4,312 | ||
Other current assets | $ | 665 | $ | 711 | ||
Accounts payable - Other | $ | 2,401 | $ | 2,097 | ||
Dividends payable | $ | 508 | $ | — | ||
Accrued and other current liabilities | $ | 3,669 | $ | 4,481 |
Summary of Changes to the Consolidated Statements of Cash Flows | Nine Months Ended | |||||
Sep 30, 2016 | ||||||
In millions | As Filed | Updated | ||||
Operating Activities | ||||||
Net periodic pension benefit cost | $ | — | $ | 312 | ||
Net gain on sales of assets, businesses and investments | $ | — | $ | (179 | ) | |
Net gain on sales of investments | $ | (97 | ) | $ | — | |
Net gain on sales of property, businesses and consolidated companies | $ | (82 | ) | $ | — | |
Other net loss | $ | 97 | $ | 300 | ||
Accounts payable | $ | 695 | $ | 1,031 | ||
Other assets and liabilities, net 1 | $ | 520 | $ | (331 | ) | |
Financing Activities | ||||||
Transaction financing, debt issuance and other costs | $ | (2 | ) | $ | — | |
Other financing activities, net | $ | — | $ | (2 | ) |
Summary of Changes to the Consolidated Statements of Equity | Nine Months Ended | |||||
Sep 30, 2016 | ||||||
In millions | As Filed | Updated | ||||
Dividend equivalents on participating securities | $ | (21 | ) | $ | — | |
Other | $ | — | $ | (21 | ) |
Consideration | |||
(In millions, except exchange ratio) | |||
DuPont Common Stock outstanding as of Aug 31, 2017 | 868.3 | ||
DuPont exchange ratio | 1.2820 | ||
DowDuPont Common Stock issued in exchange for DuPont Common Stock | 1,113.2 | ||
Fair value of DowDuPont Common Stock issued 1 | $ | 74,195 | |
Fair value of DowDuPont equity awards issued in exchange for outstanding DuPont equity awards 2 | 485 | ||
Total consideration | $ | 74,680 |
DuPont Assets Acquired and Liabilities Assumed on Aug 31, 2017 | |||
In millions | |||
Fair Value of Assets Acquired | |||
Cash and cash equivalents | $ | 4,005 | |
Marketable securities | 2,849 | ||
Accounts and notes receivable - Trade | 6,199 | ||
Accounts and notes receivable - Other | 1,652 | ||
Inventories | 8,886 | ||
Other current assets | 360 | ||
Assets held for sale | 3,184 | ||
Investment in nonconsolidated affiliates | 1,685 | ||
Other investments | 50 | ||
Noncurrent receivables | 84 | ||
Net property | 12,122 | ||
Goodwill 1 | 45,501 | ||
Other intangible assets 1 | 27,844 | ||
Deferred income tax assets | 487 | ||
Deferred charges and other assets | 1,942 | ||
Total Assets | $ | 116,850 | |
Fair Value of Liabilities Assumed | |||
Notes Payable | $ | 4,046 | |
Long-term debt due within one year | 1,273 | ||
Accounts payable - Trade | 2,344 | ||
Accounts payable - Other | 939 | ||
Income taxes payable | 140 | ||
Accrued and other current liabilities | 3,517 | ||
Liabilities held for sale | 104 | ||
Long-Term debt | 9,878 | ||
Deferred income tax liabilities | 9,408 | ||
Pension and other postretirement benefits - noncurrent 2 | 8,092 | ||
Other noncurrent obligations | 2,028 | ||
Total Liabilities | $ | 41,769 | |
Noncontrolling interests | 401 | ||
Net Assets (Consideration for the Merger) | $ | 74,680 |
(in millions) | |||||
Fair Value of Assets Acquired | |||||
92 | |||||
Accounts and notes receivable | 93 | ||||
Inventories | 50 | ||||
Property, plant, and equipment | 104 | ||||
Other current assets | 10 | ||||
Goodwill | 1,219 | ||||
Other intangible assets | 1,160 | ||||
Deferred income tax assets | 3 | ||||
Deferred charges and other | 26 | ||||
Total Assets | $ | 2,757 | |||
Fair Value of Liabilities Assumed | |||||
Accounts payable | $ | 75 | |||
Income taxes payable | 10 | ||||
Accrued and other current liabilities | 46 | ||||
Deferred income tax liabilities | 184 | ||||
Pension & other post-employment benefits | 10 | ||||
Other noncurrent obligations | 28 | ||||
Total Liabilities | $ | 353 | |||
Net Assets (Consideration for Laird PM) | $ | 2,404 |
DuPont Results of Operations | Sep 1 - | ||
In millions | Sep 30, 2017 | ||
Net sales | $ | 1,734 | |
Loss from continuing operations before income taxes | $ | (303 | ) |
EAA Copolymers and Ionomers Assets Divested on Sep 1, 2017 | |||
In millions | |||
Current assets | $ | 34 | |
Net property | 12 | ||
Goodwill | 23 | ||
Net carrying value divested | $ | 69 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
In millions | 2020 | 2021 | 2020 | ||||||||
Net sales | $ | 1,467 | $ | 507 | $ | 4,557 | |||||
Cost of sales | 975 | 354 | 2,967 | ||||||||
Research and development expenses | 59 | 21 | 178 | ||||||||
Selling, general and administrative expenses | 121 | 47 | 399 | ||||||||
Amortization of intangibles | 358 | 38 | 1,064 | ||||||||
Restructuring and asset related charges - net | 6 | 1 | 7 | ||||||||
Integration and separation costs | 105 | 172 | 308 | ||||||||
Equity in earnings of nonconsolidated affiliates | 1 | — | 2 | ||||||||
Sundry income (expense) - net | — | 8 | (4) | ||||||||
Interest expense | 32 | 13 | 56 | ||||||||
Loss from discontinued operations before income taxes | (188) | (131) | (424) | ||||||||
Benefit from income taxes on discontinued operations | (30) | (27) | (124) | ||||||||
Loss from discontinued operations, net of tax | (158) | (104) | (300) | ||||||||
Non-taxable gain on split-off | — | 4,940 | — | ||||||||
(Loss) Income from discontinued operations attributable to DuPont stockholders, net of tax | $ | (158) | $ | 4,836 | $ | (300) |
Results of Operations of DuPont's Divested Ag Business | Three and Nine Months Ended | ||
In millions | Sep 30, 2017 | ||
Net sales | $ | 116 | |
Cost of sales | 110 | ||
Research and development expenses | 9 | ||
Selling, general and administrative expenses | 29 | ||
Loss from discontinued operations before income taxes | $ | (32 | ) |
Benefit from income taxes | (12 | ) | |
Loss from discontinued operations, net of tax | $ | (20 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
In millions | 2020 | 2021 | 2020 | ||||||||
Depreciation and amortization | $ | 435 | $ | 63 | $ | 1,287 | |||||
Capital expenditures | $ | 36 | $ | 27 | $ | 161 | |||||
Capital Expenditures of DuPont's Divested Ag Business | Three and Nine Months Ended | ||
In millions | Sep 30, 2017 | ||
Capital expenditures | $ | 4 |
In millions | December 31, 2020 | ||||
Assets | |||||
Accounts and notes receivable - net | $ | 1,130 | |||
Inventories | 1,333 | ||||
Other current assets | 65 | ||||
Investments and noncurrent receivables | 36 | ||||
Property, plant, and equipment - net | 3,118 | ||||
Goodwill | 11,542 | ||||
Other intangible assets - net | 3,072 | ||||
Deferred income tax assets | 44 | ||||
Deferred charges and other assets | 319 | ||||
Total assets of discontinued operations | $ | 20,659 | |||
Liabilities | |||||
Short-term borrowings and finance lease obligations | $ | 4 | |||
Accounts payable | 742 | ||||
Income taxes payable | 36 | ||||
Accrued and other current liabilities | 301 | ||||
Long-term debt | 6,195 | ||||
Deferred income tax liabilities | 852 | ||||
Pension and other post-employment benefits - noncurrent | 238 | ||||
Other noncurrent obligations | 242 | ||||
Total liabilities of discontinued operations | $ | 8,610 |
Carrying Values of Assets and Liabilities of DuPont's Divested Ag Business | |||
In millions | Sep 30, 2017 | ||
Cash and cash equivalents | $ | 125 | |
Accounts and notes receivable - net | 39 | ||
Inventories | 973 | ||
Other current assets | 1 | ||
Net property | 523 | ||
Goodwill | 145 | ||
Other intangible assets | 1,360 | ||
Deferred charges and other assets | 5 | ||
Total assets held for sale | $ | 3,171 | |
Accounts payable | $ | 62 | |
Accrued and other current liabilities | 13 | ||
Pension and other postretirement benefits - noncurrent | 12 | ||
Other noncurrent obligations | 21 | ||
Total liabilities held for sale | $ | 108 |
In millions | September 30, 2021 | December 31, 2020 | ||||||
Assets | ||||||||
Accounts and notes receivable - net | $ | 62 | $ | 63 | ||||
Inventories | 79 | 75 | ||||||
Other current assets | 37 | 35 | ||||||
Investments and noncurrent receivables | 158 | 164 | ||||||
Property, plant and equipment - net | 76 | 34 | ||||||
Goodwill | 267 | 267 | ||||||
Other intangible assets | 168 | 168 | ||||||
Deferred charges and other assets | 3 | 4 | ||||||
Assets held for sale | $ | 850 | $ | 810 | ||||
Liabilities | ||||||||
Accounts payable | $ | 57 | $ | 40 | ||||
Income taxes payable | 2 | 1 | ||||||
Accrued and other current liabilities | 37 | 50 | ||||||
Deferred income tax liabilities | 29 | 30 | ||||||
Pension and other post-employment benefits - noncurrent | — | 1 | ||||||
Other noncurrent obligations | 17 | 18 | ||||||
Liabilities related to assets held for sale | $ | 142 | $ | 140 |
DowDuPont Pro Forma Results of Operations | Three Months Ended | Nine Months Ended | ||||||||||
Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | |||||||||
In millions | ||||||||||||
Net sales | $ | 18,319 | $ | 17,109 | $ | 59,620 | $ | 53,388 | ||||
Income from continuing operations, net of tax | $ | 762 | $ | 516 | $ | 4,351 | $ | 2,744 | ||||
Earnings per common share from continuing operations - basic | $ | 0.31 | $ | 0.18 | $ | 1.82 | $ | 1.08 | ||||
Earnings per common share from continuing operations - diluted | $ | 0.31 | $ | 0.18 | $ | 1.80 | $ | 1.07 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
In millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Acquisition, integration and separation costs | $ | 29 | $ | 22 | $ | 58 | $ | 161 |
Net Trade Revenue by Segment and Business or Major Product Line | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
In millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Industrial Solutions | $ | 474 | $ | 398 | $ | 1,412 | $ | 1,189 | ||||||
Interconnect Solutions | 489 | 370 | 1,158 | 910 | ||||||||||
Semiconductor Technologies | 504 | 445 | 1,517 | 1,340 | ||||||||||
Electronics & Industrial | $ | 1,467 | $ | 1,213 | $ | 4,087 | $ | 3,439 | ||||||
Safety Solutions | $ | 646 | $ | 534 | $ | 1,933 | $ | 1,746 | ||||||
Shelter Solutions | 414 | 387 | 1,193 | 1,051 | ||||||||||
Water Solutions | 337 | 328 | 1,011 | 972 | ||||||||||
Water & Protection | $ | 1,397 | $ | 1,249 | $ | 4,137 | $ | 3,769 | ||||||
Advanced Solutions | $ | 382 | $ | 303 | $ | 1,155 | $ | 858 | ||||||
Engineering Polymers | 611 | 460 | 1,665 | 1,339 | ||||||||||
Performance Resins | 305 | 233 | 963 | 680 | ||||||||||
Mobility & Materials | $ | 1,298 | $ | 996 | $ | 3,783 | $ | 2,877 | ||||||
Corporate 1 | $ | 109 | $ | 171 | 375 | 503 | ||||||||
Total | $ | 4,271 | $ | 3,629 | $ | 12,382 | $ | 10,588 |
Net Trade Revenue by Geographic Region | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
In millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
U.S. & Canada | $ | 1,208 | $ | 1,068 | $ | 3,414 | $ | 3,177 | ||||||
EMEA 1 | 831 | 650 | 2,475 | 2,038 | ||||||||||
Asia Pacific | 2,080 | 1,776 | 6,046 | 4,998 | ||||||||||
Latin America | 152 | 135 | 447 | 375 | ||||||||||
Total | $ | 4,271 | $ | 3,629 | $ | 12,382 | $ | 10,588 |
Contract Balances | September 30, 2021 | December 31, 2020 | ||||||
In millions | ||||||||
Accounts and notes receivable - trade 1 | $ | 2,301 | $ | 1,911 | ||||
Deferred revenue - current 2 | $ | 34 | $ | 16 | ||||
Deferred revenue - noncurrent 3 | $ | — | $ | 21 |
Dow Corning Assets Acquired and Liabilities Assumed on Jun 1, 2016 | |||
In millions | |||
Fair Value of Previously Held Equity Investment, excluding the HSC Group | $ | 4,818 | |
Fair Value of Assets Acquired | |||
Cash and cash equivalents | $ | 1,050 | |
Accounts and notes receivable - Trade | 647 | ||
Accounts and notes receivable - Other | 223 | ||
Inventories | 1,147 | ||
Other current assets | 51 | ||
Investment in nonconsolidated affiliates | 110 | ||
Noncurrent receivables | 112 | ||
Net property | 3,996 | ||
Other intangible assets 1 | 2,987 | ||
Deferred income tax assets | 999 | ||
Other assets | 98 | ||
Total Assets Acquired | $ | 11,420 | |
Fair Value of Liabilities Assumed | |||
Accounts payable - Trade | $ | 374 | |
Income taxes payable | 260 | ||
Accrued and other current liabilities | 404 | ||
Other current liabilities | 112 | ||
Long-Term Debt | 4,672 | ||
Deferred income tax liabilities | 1,858 | ||
Pension and other postretirement benefits - noncurrent 2 | 1,241 | ||
Other noncurrent obligations | 437 | ||
Total Liabilities Assumed | $ | 9,358 | |
Noncontrolling interests | $ | 473 | |
Goodwill | $ | 3,229 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
In millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Severance and related benefit costs | $ | 1 | $ | 4 | $ | 11 | $ | 99 | ||||||
Asset related charges | — | 4 | 2 | 28 | ||||||||||
Total restructuring and asset related charges - net | $ | 1 | $ | 8 | $ | 13 | $ | 127 |
2020 Restructuring Program Charges by Segment | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
In millions | 2021 | 2020 | 2021 | 2020 | |||||||||||||
Electronics & Industrial | $ | — | $ | 1 | $ | 2 | $ | 5 | |||||||||
Water & Protection | — | 2 | — | 24 | |||||||||||||
Mobility & Materials | — | — | 6 | 21 | |||||||||||||
Corporate | 1 | 5 | 5 | 77 | |||||||||||||
Total | $ | 1 | $ | 8 | $ | 13 | $ | 127 |
2020 Restructuring Program | Severance and Related Benefit Costs | Asset Related Charges | Total | ||||||||||||||
In millions | |||||||||||||||||
Reserve balance at December 31, 2020 | $ | 62 | $ | — | $ | 62 | |||||||||||
Year-to-date restructuring charges | 11 | 2 | 13 | ||||||||||||||
Charges against the reserve | — | (2) | (2) | ||||||||||||||
Cash payments | (48) | — | (48) | ||||||||||||||
Reserve balance at September 30, 2021 | $ | 25 | $ | — | $ | 25 |
2017 Restructuring Activities | Severance and Related Benefit Costs | ||
In millions | |||
2017 restructuring charges | $ | 179 | |
Cash payments | (20 | ) | |
Non-cash compensation | (7 | ) | |
Reserve balance at Sep 30, 2017 | $ | 152 |
2016 Restructuring Activities | Severance and Related Benefit Costs | Asset Related Charges and Other | Costs Associated with Exit and Disposal Activities | Total | ||||||||
In millions | ||||||||||||
Performance Materials & Coatings | $ | — | $ | 27 | $ | 15 | $ | 42 | ||||
Industrial Intermediates & Infrastructure | — | 70 | 13 | 83 | ||||||||
Packaging & Specialty Plastics | — | 10 | — | 10 | ||||||||
Corporate | 268 | 46 | — | 314 | ||||||||
2016 restructuring charges | $ | 268 | $ | 153 | $ | 28 | $ | 449 | ||||
Charges against the reserve | — | (153 | ) | — | (153 | ) | ||||||
Cash payments | (67 | ) | — | (1 | ) | (68 | ) | |||||
Reserve balance at Dec 31, 2016 | $ | 201 | $ | — | $ | 27 | $ | 228 | ||||
Adjustments to the reserve 1 | — | — | (3 | ) | (3 | ) | ||||||
Cash payments | (141 | ) | — | — | (141 | ) | ||||||
Reserve balance at Sep 30, 2017 | $ | 60 | $ | — | $ | 24 | $ | 84 |
Adjustments to the 2015 Restructuring Reserve 1 | Three Months Ended | Nine Months Ended | ||||||||||
In millions | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||||||
Severance and related benefit credits 2 | $ | — | $ | — | $ | (9 | ) | $ | — | |||
Asset related credits and other 3 | $ | — | $ | (1 | ) | $ | — | $ | (3 | ) | ||
Costs (credits) associated with exit and disposal activities 4 | $ | — | $ | 1 | $ | (1 | ) | $ | 6 |
Sundry Income (Expense) - Net | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
In millions | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||
Non-operating pension and other post-employment benefit (OPEB) credits | $ | 14 | $ | 4 | $ | 39 | $ | 23 | ||||||||||||
Interest income | — | 4 | 4 | 8 | ||||||||||||||||
Net gain on divestiture and sales of other assets and investments 1,2,3 | 8 | 418 | 175 | 611 | ||||||||||||||||
Foreign exchange losses, net | (19) | (6) | (36) | (27) | ||||||||||||||||
Miscellaneous income (expenses) - net 4 | 5 | 10 | (12) | 16 | ||||||||||||||||
Sundry income (expense) - net | $ | 8 | $ | 430 | $ | 170 | $ | 631 |
Sundry Income (Expense) - Net | Three Months Ended | Nine Months Ended | ||||||||||
In millions | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||||||
Gain on Dow's divestiture of the EAA copolymers and ionomers business 1 | $ | 227 | $ | — | $ | 227 | $ | — | ||||
Foreign exchange gains (losses) | $ | 72 | $ | (37 | ) | $ | 16 | $ | (102 | ) | ||
Interest income | $ | 39 | $ | 26 | $ | 86 | $ | 64 | ||||
Gain on sales of other assets and investments | $ | 11 | $ | 45 | $ | 148 | $ | 130 | ||||
Gain related to Dow's Nova patent infringement award 2 | $ | — | $ | — | $ | 137 | $ | — | ||||
Loss related to Dow's Bayer CropScience arbitration matter 2 | $ | — | $ | — | $ | (469 | ) | $ | — | |||
Gain on Dow's ownership restructure of Dow Corning 1 | $ | — | $ | — | $ | — | $ | 2,445 | ||||
Settlement of Dow's urethane matters class action lawsuit and opt-out cases 2 | $ | — | $ | — | $ | — | $ | (1,235 | ) | |||
Obligation related to the split-off of Dow's chlorine value chain | $ | — | $ | (33 | ) | $ | — | $ | (33 | ) |
Accrued and Other Current Liabilities | Sep 30, 2017 | Dec 31, 2016 | ||||
In millions | ||||||
Accrued payroll | $ | 1,676 | $ | 1,105 | ||
Employee retirement plans 1 | $ | 1,490 | $ | 364 |
Net Income for Earnings Per Share Calculations - Basic & Diluted | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
In millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Income (loss) from continuing operations, net of tax | $ | 433 | $ | 86 | $ | 1,538 | $ | (2,853) | ||||||
Net income from continuing operations attributable to noncontrolling interests | 13 | 7 | $ | 26 | $ | 20 | ||||||||
Income (loss) from continuing operations attributable to common stockholders | $ | 420 | $ | 79 | $ | 1,512 | $ | (2,873) | ||||||
(Loss) income from discontinued operations attributable to common stockholders | (29) | (158) | $ | 4,751 | $ | (300) | ||||||||
Net income (loss) attributable to common stockholders | $ | 391 | $ | (79) | $ | 6,263 | $ | (3,173) |
Earnings Per Share Calculations - Basic | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
Dollars per share | 2021 | 2020 | 2021 | 2020 | ||||||||||
Earnings (loss) from continuing operations attributable to common stockholders | $ | 0.81 | $ | 0.11 | $ | 2.74 | $ | (3.90) | ||||||
(Loss) earnings from discontinued operations, net of tax | (0.06) | (0.22) | 8.61 | (0.41) | ||||||||||
Earnings (loss) attributable to common stockholders 2 | $ | 0.75 | $ | (0.11) | $ | 11.35 | $ | (4.31) |
Earnings Per Share Calculations - Diluted | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
Dollars per share | 2021 | 2020 | 2021 | 2020 | ||||||||||
Earnings (loss) from continuing operations attributable to common stockholders | $ | 0.80 | $ | 0.11 | $ | 2.73 | $ | (3.90) | ||||||
(Loss) earnings from discontinued operations, net of tax | (0.06) | (0.21) | 8.59 | (0.41) | ||||||||||
Earnings (loss) attributable to common stockholders 2 | $ | 0.75 | $ | (0.11) | $ | 11.32 | $ | (4.31) |
Share Count Information | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
Shares in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Weighted-average common shares - basic | 521.5 | 734.4 | 551.7 | 735.8 | ||||||||||
Plus dilutive effect of equity compensation plans | 1.6 | 0.5 | 1.4 | — | ||||||||||
Weighted-average common shares - diluted | 523.1 | 734.9 | 553.1 | 735.8 | ||||||||||
Stock options and restricted stock units excluded from EPS calculations 1 | 2.4 | 5.5 | 2.7 | 6.3 |
Net Income for Earnings Per Share Calculations - Basic | Three Months Ended | Nine Months Ended | ||||||||||
In millions | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||||||
Income from continuing operations, net of tax | $ | 554 | $ | 818 | $ | 2,828 | $ | 4,320 | ||||
Net income attributable to noncontrolling interests | (20 | ) | (14 | ) | (85 | ) | (54 | ) | ||||
Preferred stock dividends 1 | — | (85 | ) | — | (255 | ) | ||||||
Net income attributable to participating securities 2 | (3 | ) | (4 | ) | (13 | ) | (23 | ) | ||||
Income from continuing operations attributable to common stockholders | $ | 531 | $ | 715 | $ | 2,730 | $ | 3,988 | ||||
Loss from discontinued operations, net of tax | (20 | ) | — | (20 | ) | — | ||||||
Net income attributable to common stockholders | $ | 511 | $ | 715 | $ | 2,710 | $ | 3,988 |
Earnings Per Share Calculations - Basic | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||||||
Dollars per share | ||||||||||||
Income from continuing operations attributable to common stockholders | $ | 0.33 | $ | 0.64 | $ | 2.05 | $ | 3.60 | ||||
Loss from discontinued operations, net of tax | (0.01 | ) | — | (0.01 | ) | — | ||||||
Net income attributable to common stockholders | $ | 0.32 | $ | 0.64 | $ | 2.04 | $ | 3.60 |
Net Income for Earnings Per Share Calculations - Diluted | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||||||
In millions | ||||||||||||
Income from continuing operations, net of tax | $ | 554 | $ | 818 | $ | 2,828 | $ | 4,320 | ||||
Net income attributable to noncontrolling interests | (20 | ) | (14 | ) | (85 | ) | (54 | ) | ||||
Preferred stock dividends 1,3 | — | (85 | ) | — | — | |||||||
Net income attributable to participating securities 2 | (3 | ) | (4 | ) | (13 | ) | (23 | ) | ||||
Income from continuing operations attributable to common stockholders | $ | 531 | $ | 715 | $ | 2,730 | $ | 4,243 | ||||
Loss from discontinued operations, net of tax | (20 | ) | — | (20 | ) | — | ||||||
Net income attributable to common stockholders | $ | 511 | $ | 715 | $ | 2,710 | $ | 4,243 |
Earnings Per Share Calculations - Diluted | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||||||
Dollars per share | ||||||||||||
Income from continuing operations attributable to common stockholders | $ | 0.33 | $ | 0.63 | $ | 2.02 | $ | 3.48 | ||||
Loss from discontinued operations, net of tax | (0.01 | ) | — | (0.01 | ) | — | ||||||
Net income attributable to common stockholders | $ | 0.32 | $ | 0.63 | $ | 2.01 | $ | 3.48 |
Share Count Information | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||
Shares in millions | ||||||||
Weighted-average common shares - basic 4 | 1,577.8 | 1,112.4 | 1,330.7 | 1,108.8 | ||||
Plus dilutive effect of equity compensation plans 4 | 17.5 | 15.0 | 18.1 | 14.8 | ||||
Plus dilutive effect of assumed conversion of preferred stock 1,5 | — | — | — | 96.8 | ||||
Weighted-average common shares - diluted 4 | 1,595.3 | 1,127.4 | 1,348.8 | 1,220.4 | ||||
Stock options and deferred stock awards excluded from EPS calculations 6 | 2.2 | — | 1.8 | 2.5 |
Inventories | Sep 30, 2017 | Dec 31, 2016 | ||||
In millions | ||||||
Finished goods | $ | 9,094 | $ | 4,230 | ||
Work in process | 5,221 | 1,510 | ||||
Raw materials | 1,365 | 853 | ||||
Supplies | 1,210 | 823 | ||||
Total | $ | 16,890 | $ | 7,416 | ||
Adjustment of inventories to a LIFO basis | 365 | (53 | ) | |||
Total inventories | $ | 17,255 | $ | 7,363 |
In millions | September 30, 2021 | December 31, 2020 | ||||||
Accounts receivable – trade 1 | $ | 2,237 | $ | 1,850 | ||||
Notes receivable – trade | 64 | 61 | ||||||
Other 2 | 607 | 510 | ||||||
Total accounts and notes receivable - net | $ | 2,908 | $ | 2,421 |
Property 1 | Estimated Useful Lives (Years) | Sep 30, 2017 | Dec 31, 2016 | |||||
In millions | ||||||||
Land and land improvements | 0-25 | $ | 3,479 | $ | 2,524 | |||
Buildings | 1-50 | 8,389 | 5,935 | |||||
Machinery and equipment | 1-25 | 48,174 | 38,499 | |||||
Other property | 3-50 | 5,218 | 4,380 | |||||
Construction in progress | — | 6,967 | 6,100 | |||||
Total property | $ | 72,227 | $ | 57,438 |
Inventories | September 30, 2021 | December 31, 2020 | ||||||
In millions | ||||||||
Finished goods 1 | $ | 1,670 | $ | 1,447 | ||||
Work in process 1 | 528 | 454 | ||||||
Raw materials 1 | 492 | 368 | ||||||
Supplies | 154 | 124 | ||||||
Total inventories | $ | 2,844 | $ | 2,393 |
Estimated Useful Lives (Years) | September 30, 2021 | December 31, 2020 | ||||||||||||||||||
In millions | ||||||||||||||||||||
Land and land improvements | 1 | - | 25 | $ | 617 | $ | 682 | |||||||||||||
Buildings | 1 | - | 50 | 2,146 | 2,031 | |||||||||||||||
Machinery, equipment, and other | 1 | - | 25 | 7,543 | 7,182 | |||||||||||||||
Construction in progress | 1,214 | 1,228 | ||||||||||||||||||
Total property, plant and equipment | $ | 11,520 | $ | 11,123 | ||||||||||||||||
Total accumulated depreciation | $ | 4,599 | $ | 4,256 | ||||||||||||||||
Total property, plant and equipment - net | $ | 6,921 | $ | 6,867 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
In millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Depreciation expense | $ | 174 | $ | 173 | $ | 501 | $ | 513 |
Investments in Nonconsolidated Affiliates | September 30, 2021 | December 31, 2020 | ||||||
In millions | ||||||||
Investments and noncurrent receivables | $ | 926 | $ | 889 | ||||
Accrued and other current liabilities | (64) | (71) | ||||||
Net investment in nonconsolidated affiliates | $ | 862 | $ | 818 |
Electronics & Industrial | Water & Protection | Mobility & Materials | Total | |||||||||||
In millions | ||||||||||||||
Balance at December 31, 2020 | $ | 8,458 | $ | 6,969 | $ | 3,275 | $ | 18,702 | ||||||
Goodwill recognized for Laird PM Acquisition 1 | 1,219 | — | — | 1,219 | ||||||||||
Currency Translation Adjustment | (66) | (108) | (67) | (241) | ||||||||||
Other | — | — | 8 | 8 | ||||||||||
Balance at September 30, 2021 | $ | 9,611 | $ | 6,861 | $ | 3,216 | $ | 19,688 |
Goodwill | Agri-culture | Perf. Materials & Coatings | Ind. Interm. & Infrast. | Pack. & Spec. Plastics | Elect. & Imaging | Nutrition & Biosciences | Transp. & Adv. Polymers | Safety & Const. | Total | ||||||||||||||||||
In millions | |||||||||||||||||||||||||||
Net goodwill at Dec 31, 2016 | $ | 1,472 | $ | 4,918 | $ | 1,085 | $ | 1,518 | $ | 4,155 | $ | 340 | $ | 601 | $ | 1,183 | $ | 15,272 | |||||||||
Goodwill recognized from the Merger 1 | 13,109 | — | — | 3,617 | 3,942 | 10,522 | 8,042 | 6,269 | 45,501 | ||||||||||||||||||
Sale of SKC Haas Display Films 2 | — | — | — | — | (34 | ) | — | — | — | (34 | ) | ||||||||||||||||
Divestiture of EAA copolymers and ionomers business 3 | — | — | — | (23 | ) | — | — | — | — | (23 | ) | ||||||||||||||||
Other | (11 | ) | — | — | (1 | ) | — | — | — | — | (12 | ) | |||||||||||||||
Foreign currency impact | (89 | ) | 179 | 14 | 18 | 7 | (91 | ) | (33 | ) | (11 | ) | (6 | ) | |||||||||||||
Net goodwill at Sep 30, 2017 | $ | 14,481 | $ | 5,097 | $ | 1,099 | $ | 5,129 | $ | 8,070 | $ | 10,771 | $ | 8,610 | $ | 7,441 | $ | 60,698 |
Other Intangible Assets 1 | Sep 30, 2017 | Dec 31, 2016 | ||||||||||||||||
In millions | Gross Carrying Amount | Accum Amort | Net | Gross Carrying Amount | Accum Amort | Net | ||||||||||||
Intangible assets with finite lives: | ||||||||||||||||||
Developed technology | $ | 7,371 | $ | (1,628 | ) | $ | 5,743 | $ | 3,254 | $ | (1,383 | ) | $ | 1,871 | ||||
Software | 1,398 | (759 | ) | 639 | 1,336 | (696 | ) | 640 | ||||||||||
Trademarks/tradenames | 1,768 | (558 | ) | 1,210 | 696 | (503 | ) | 193 | ||||||||||
Customer-related | 14,378 | (1,889 | ) | 12,489 | 4,806 | (1,567 | ) | 3,239 | ||||||||||
Microbial cell factories 2 | 430 | (2 | ) | 428 | — | — | — | |||||||||||
Other 3 | 540 | (154 | ) | 386 | 168 | (146 | ) | 22 | ||||||||||
Total other intangible assets with finite lives | $ | 25,885 | $ | (4,990 | ) | $ | 20,895 | $ | 10,260 | $ | (4,295 | ) | $ | 5,965 | ||||
Intangible assets with indefinite lives: | ||||||||||||||||||
In-process research and development ("IPR&D") | 716 | — | 716 | 61 | — | 61 | ||||||||||||
Germplasm 4 | 6,773 | — | 6,773 | — | — | — | ||||||||||||
Trademarks/tradenames | 5,036 | — | 5,036 | — | — | — | ||||||||||||
Total other intangible assets | $ | 38,410 | $ | (4,990 | ) | $ | 33,420 | $ | 10,321 | $ | (4,295 | ) | $ | 6,026 |
Merger Intangible Assets | Gross Carrying Amount | Weighted-average Amort Period (years) | ||
In millions | ||||
Intangible assets with finite lives: | ||||
Developed technology | $ | 4,124 | 12 | |
Trademarks/tradenames | 1,073 | 12 | ||
Customer-related | 9,434 | 18 | ||
Microbial cell factories | 430 | 23 | ||
Other | 294 | 15 | ||
Total other intangible assets with finite lives | $ | 15,355 | ||
Intangible assets with indefinite lives: | ||||
IPR&D | 655 | |||
Germplasm | 6,773 | |||
Trademarks/tradenames | 5,061 | |||
Total other intangible assets | $ | 27,844 |
September 30, 2021 | December 31, 2020 | |||||||||||||||||||
In millions | Gross Carrying Amount | Accum Amort | Net | Gross Carrying Amount | Accum Amort | Net | ||||||||||||||
Intangible assets with finite lives: | ||||||||||||||||||||
Developed technology 1 | $ | 3,051 | $ | (1,287) | $ | 1,764 | $ | 2,844 | $ | (1,220) | $ | 1,624 | ||||||||
Trademarks/tradenames 1 | 1,125 | (483) | 642 | 1,095 | (440) | 655 | ||||||||||||||
Customer-related 1 | 7,800 | (2,639) | 5,161 | 7,075 | (2,361) | 4,714 | ||||||||||||||
Other | 131 | (83) | 48 | 131 | (81) | 50 | ||||||||||||||
Total other intangible assets with finite lives | $ | 12,107 | $ | (4,492) | $ | 7,615 | $ | 11,145 | $ | (4,102) | $ | 7,043 | ||||||||
Intangible assets with indefinite lives: | ||||||||||||||||||||
Trademarks/tradenames | 1,029 | — | 1,029 | 1,029 | — | 1,029 | ||||||||||||||
Total other intangible assets | 1,029 | — | 1,029 | 1,029 | — | 1,029 | ||||||||||||||
Total | $ | 13,136 | $ | (4,492) | $ | 8,644 | $ | 12,174 | $ | (4,102) | $ | 8,072 |
Net Intangibles by Segment | September 30, 2021 | December 31, 2020 | ||||||
In millions | ||||||||
Electronics & Industrial 1 | $ | 3,527 | $ | 2,611 | ||||
Water & Protection | 2,733 | 2,920 | ||||||
Mobility & Materials | 2,384 | 2,541 | ||||||
Total | $ | 8,644 | $ | 8,072 |
Amortization Expense | Three Months Ended | Nine Months Ended | ||||||||||
In millions | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||||||
Other intangible assets, excluding software | $ | 244 | $ | 162 | $ | 556 | $ | 387 | ||||
Software, included in "Cost of sales" | $ | 21 | $ | 18 | $ | 61 | $ | 55 |
Estimated Amortization Expense | |||||
In millions | |||||
Remainder of 2021 | $ | 174 | |||
2022 | $ | 676 | |||
2023 | $ | 652 | |||
2024 | $ | 622 | |||
2025 | $ | 572 | |||
2026 | $ | 554 |
Estimated Amortization Expense | |||
In millions | |||
2017 | $ | 1,239 | |
2018 | $ | 1,831 | |
2019 | $ | 1,749 | |
2020 | $ | 1,701 | |
2021 | $ | 1,654 | |
2022 | $ | 1,576 |
Interests Held | Sep 30, 2017 | Dec 31, 2016 | ||||
In millions | ||||||
Carrying value of interests held | $ | 1,839 | $ | 1,237 | ||
Percentage of anticipated credit losses | 0.87 | % | 0.36 | % | ||
Impact to carrying value - 10% adverse change | $ | 1 | $ | 1 | ||
Impact to carrying value - 20% adverse change | $ | 2 | $ | 1 |
Cash Proceeds | Three Months Ended | Nine Months Ended | |||||||||||
In millions | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | |||||||||
Collections reinvested in revolving receivables | $ | 6,295 | $ | 5,783 | $ | 18,027 | $ | 15,760 | |||||
Interests in conduits 1 | $ | 135 | $ | 129 | $ | 939 | $ | 882 |
Trade Accounts Receivable Sold | Sep 30, 2017 | Dec 31, 2016 | ||||
In millions | ||||||
Delinquencies on sold receivables still outstanding | $ | 128 | $ | 86 | ||
Trade accounts receivable outstanding and derecognized | $ | 2,865 | $ | 2,257 |
Long-Term Debt | September 30, 2021 | December 31, 2020 | ||||||||||||
In millions | Amount | Weighted Average Rate | Amount | Weighted Average Rate | ||||||||||
Promissory notes and debentures 1: | ||||||||||||||
Final maturity 2023 2 | $ | 2,800 | 3.89 | % | $ | 4,800 | 3.18 | % | ||||||
Final maturity 2025 | 1,850 | 4.49 | % | 1,850 | 4.49 | % | ||||||||
Final maturity 2026 and thereafter | 6,050 | 5.13 | % | 6,050 | 5.13 | % | ||||||||
Other facilities: | ||||||||||||||
Term loan due 2022 | — | — | % | 3,000 | 1.25 | % | ||||||||
Finance lease obligations | 2 | 2 | ||||||||||||
Less: Unamortized debt discount and issuance costs | 72 | 90 | ||||||||||||
Less: Long-term debt due within one year | 1 | 1 | ||||||||||||
Total | $ | 10,629 | $ | 15,611 |
Maturities of Long-Term Debt for Next Five Years at September 30, 2021 | Total | |||||||||||||
In millions | ||||||||||||||
Remainder of 2021 | $ | — | ||||||||||||
2022 | $ | — | ||||||||||||
2023 | $ | 2,800 | ||||||||||||
2024 | $ | — | ||||||||||||
2025 | $ | 1,850 | ||||||||||||
2026 | $ | — |
Notes Payable | Sep 30, 2017 | Dec 31, 2016 | ||||||||||
In millions | Dow | DuPont | Total | |||||||||
Commercial paper | $ | 249 | $ | 3,244 | $ | 3,493 | $ | — | ||||
Notes payable to banks and other lenders 1 | 293 | 1,348 | 1,641 | 225 | ||||||||
Notes payable to related companies | 42 | — | 42 | 44 | ||||||||
Notes payable trade | — | — | — | 3 | ||||||||
Total notes payable | $ | 584 | $ | 4,592 | $ | 5,176 | $ | 272 | ||||
Period-end average interest rates | 4.12 | % | 1.70 | % | 4.60 | % |
Long-Term Debt | Sep 30, 2017 | 2016 Weighted Average Rate | Dec 31, 2016 | ||||||||||||||||
In millions | Dow Weighted Average Rate | Dow | DuPont Weighted Average Rate | DuPont | Total | ||||||||||||||
Promissory notes and debentures: | |||||||||||||||||||
Final maturity 2017 | 9.80 | % | $ | 3 | — | % | $ | — | $ | 3 | 6.06 | % | $ | 442 | |||||
Final maturity 2018 | 5.78 | % | 339 | 1.59 | % | 1,293 | 1,632 | 5.78 | % | 339 | |||||||||
Final maturity 2019 | 8.55 | % | 2,122 | 2.23 | % | 525 | 2,647 | 8.55 | % | 2,122 | |||||||||
Final maturity 2020 | 4.46 | % | 1,547 | 1.78 | % | 3,079 | 4,626 | 4.46 | % | 1,547 | |||||||||
Final maturity 2021 | 4.71 | % | 1,424 | 2.07 | % | 1,586 | 3,010 | 4.72 | % | 1,424 | |||||||||
Final maturity 2022 | 3.00 | % | 1,252 | — | % | — | 1,252 | 3.00 | % | 1,250 | |||||||||
Final maturity 2023 and thereafter | 5.99 | % | 7,188 | 3.32 | % | 3,496 | 10,684 | 5.98 | % | 7,199 | |||||||||
Other facilities: | |||||||||||||||||||
U.S. dollar loans, various rates and maturities | 2.26 | % | 4,580 | 2.27 | % | 1,019 | 5,599 | 1.60 | % | 4,595 | |||||||||
Foreign currency loans, various rates and maturities | 3.12 | % | 862 | 2.84 | % | 30 | 892 | 3.42 | % | 882 | |||||||||
Medium-term notes, varying maturities through 2043 | 3.86 | % | 995 | 0.98 | % | 110 | 1,105 | 3.82 | % | 1,026 | |||||||||
Tax-exempt bonds, varying maturities through 2038 | 5.66 | % | 343 | — | % | — | 343 | 5.66 | % | 343 | |||||||||
Capital lease obligations | — | 281 | — | 5 | 286 | — | 295 | ||||||||||||
Unamortized debt discount and issuance costs | — | (354 | ) | — | — | (354 | ) | — | (373 | ) | |||||||||
Long-term debt due within one year 1 | — | (578 | ) | — | (1,328 | ) | (1,906 | ) | — | (635 | ) | ||||||||
Long-term debt | $ | 20,004 | $ | 9,815 | $ | 29,819 | $ | 20,456 |
Maturities of Long-Term Debt for Next Five Years at Sep 30, 2017 | Dow 1 | DuPont | Total | ||||||
In millions | |||||||||
2017 | $ | 78 | $ | 2 | $ | 80 | |||
2018 | $ | 752 | $ | 1,284 | $ | 2,036 | |||
2019 | $ | 6,934 | $ | 1,505 | $ | 8,439 | |||
2020 | $ | 1,831 | $ | 3,005 | $ | 4,836 | |||
2021 | $ | 1,561 | $ | 1,505 | $ | 3,066 | |||
2022 | $ | 1,497 | $ | 2 | $ | 1,499 |
Committed and Available Credit Facilities at September 30, 2021 | |||||||||||||||||
In millions | Effective Date | Committed Credit | Credit Available | Maturity Date | Interest | ||||||||||||
Revolving Credit Facility, Five-year | May 2019 | $ | 3,000 | $ | 2,977 | May 2024 | Floating Rate | ||||||||||
364-day Revolving Credit Facility | April 2021 | 1,000 | 1,000 | April 2022 | Floating Rate | ||||||||||||
Total Committed and Available Credit Facilities | $ | 4,000 | $ | 3,977 |
Committed and Available Credit Facilities at Sep 30, 2017 | ||||||||||
In millions | Subsidiary | Effective Date | Committed Credit | Credit Available | Maturity Date | Interest | ||||
Five Year Competitive Advance and Revolving Credit Facility | Dow | March 2015 | $ | 5,000 | $ | 5,000 | March 2020 | Floating Rate | ||
Bilateral Revolving Credit Facility | Dow | August 2015 | 100 | 100 | March 2018 | Floating Rate | ||||
Bilateral Revolving Credit Facility | Dow | August 2015 | 100 | 100 | March 2020 | Floating Rate | ||||
Bilateral Revolving Credit Facility | Dow | August 2015 | 280 | 280 | March 2020 | Floating Rate | ||||
Bilateral Revolving Credit Facility | Dow | August 2015 | 100 | 100 | March 2020 | Floating Rate | ||||
Bilateral Revolving Credit Facility | Dow | August 2015 | 100 | 100 | March 2020 | Floating Rate | ||||
Bilateral Revolving Credit Facility | Dow | August 2015 | 200 | 200 | March 2020 | Floating Rate | ||||
Bilateral Revolving Credit Facility | Dow | May 2016 | 200 | 200 | May 2018 | Floating Rate | ||||
Bilateral Revolving Credit Facility | Dow | July 2016 | 200 | 200 | July 2018 | Floating Rate | ||||
Bilateral Revolving Credit Facility | Dow | August 2016 | 100 | 100 | August 2018 | Floating Rate | ||||
DCC Term Loan Facility 1 | Dow | February 2016 | 4,500 | — | December 2019 | Floating Rate | ||||
DuPont Revolving Credit Facility | DuPont | March 2016 | 3,000 | 2,945 | May 2019 | Floating Rate | ||||
DuPont Term Loan Facility | DuPont | March 2016 | 4,500 | 3,500 | March 2019 | Floating Rate | ||||
DuPont Repurchase Facility | DuPont | January 2017 | 1,300 | — | November 2017 | Floating Rate | ||||
Total Committed and Available Credit Facilities | $ | 19,680 | $ | 12,825 |
Indemnified Liabilities Related to the MOU | |||||||||||
In millions | September 30, 2021 | December 31, 2020 | Balance Sheet Classification | ||||||||
Current indemnified liabilities | $ | 43 | $ | 12 | Accrued and other current liabilities | ||||||
Long-term indemnified liabilities | $ | 92 | $ | 46 | Other noncurrent obligations | ||||||
Total indemnified liabilities accrued under the MOU 1, 2 | $ | 135 | $ | 58 | |||||||
Environmental Accrued Obligations | |||||||||||
In millions | September 30, 2021 | December 31, 2020 | Potential exposure above the amount accrued 1 | ||||||||
Environmental remediation liabilities not subject to indemnity | $ | 45 | $ | 36 | $ | 91 | |||||
Environmental remediation indemnified liabilities: | |||||||||||
Indemnifications related to Dow and Corteva 2 | 45 | 44 | 66 | ||||||||
MOU related obligations (discussed above) 3 | 120 | 56 | 59 | ||||||||
Total environmental related liabilities | $ | 210 | $ | 136 | $ | 216 |
Guarantees at September 30, 2021 | Final Expiration Year | Maximum Future Payments | ||||||
In millions | ||||||||
Obligations for customers 1: | ||||||||
Bank borrowings | 2021 | $ | 15 | |||||
Obligations for non-consolidated affiliates 2: | ||||||||
Bank borrowings | 2021 | $ | 163 | |||||
Total guarantees | $ | 178 |
Guarantees | Sep 30, 2017 | Dec 31, 2016 | |||||||||||||
In millions | Final Expiration | Maximum Future Payments | Recorded Liability | Final Expiration | Maximum Future Payments | Recorded Liability | |||||||||
Dow guarantees | 2021 | $ | 4,773 | $ | 59 | 2021 | $ | 5,096 | $ | 86 | |||||
Dow residual value guarantees | 2027 | 1,040 | 136 | 2027 | 947 | 134 | |||||||||
Total Dow guarantees | $ | 5,813 | $ | 195 | $ | 6,043 | $ | 220 | |||||||
DuPont guarantees | 2022 | $ | 286 | $ | — | ||||||||||
DuPont residual value guarantees | 2029 | 37 | — | ||||||||||||
Total DuPont guarantees | $ | 323 | $ | — | |||||||||||
Total guarantees | $ | 6,136 | $ | 195 | $ | 6,043 | $ | 220 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
In millions | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||
Operating lease costs | $ | 30 | $ | 36 | $ | 88 | $ | 100 |
Minimum Lease Commitments | Sep 30, 2017 | ||||||||
In millions | Dow | DuPont | Total | ||||||
2017 | $ | 88 | $ | 65 | $ | 153 | |||
2018 | 328 | 222 | 550 | ||||||
2019 | 288 | 188 | 476 | ||||||
2020 | 254 | 143 | 397 | ||||||
2021 | 224 | 110 | 334 | ||||||
2022 and thereafter | 1,102 | 164 | 1,266 | ||||||
Total | $ | 2,284 | $ | 892 | $ | 3,176 |
Merger Impact on Dow, DuPont and DowDuPont Common Stock | Prior to Merger 1 | Effect of Merger 2 | ||||
In thousands, except per share values | ||||||
Dow | ||||||
Common Stock, par value per share | $ | 2.50 | N/A | |||
Common Stock, shares authorized | 1,500,000 | — | ||||
Common Stock, shares issued and outstanding | 1,225,328 | — | ||||
DuPont | ||||||
Common Stock, par value per share | $ | 0.30 | N/A | |||
Common Stock, shares authorized | 1,800,000 | — | ||||
Common Stock, shares issued and outstanding | 868,338 | — | ||||
DowDuPont | ||||||
Common Stock, par value per share | $ | — | $ | 0.01 | ||
Common Stock, shares authorized | — | 5,000,000 | ||||
Common Stock, shares issued for Dow shares converted | — | 1,225,328 | ||||
Common Stock, shares issued for DuPont shares converted (ratio of 1.2820 to 1) | — | 1,113,209 |
In millions | September 30, 2021 | December 31, 2020 | ||||||
Operating Leases | ||||||||
Operating lease right-of-use assets 1 | $ | 423 | $ | 423 | ||||
Current operating lease liabilities 2 | 99 | 117 | ||||||
Noncurrent operating lease liabilities 3 | 331 | 308 | ||||||
Total operating lease liabilities | $ | 430 | $ | 425 |
Lease Term and Discount Rate for Operating Leases | September 30, 2021 | December 31, 2020 | ||||||
Weighted-average remaining lease term (years) | 7.54 | 5.83 | ||||||
Weighted average discount rate | 1.99 | % | 2.26 | % |
Maturity of Lease Liabilities at September 30, 2021 | Operating Leases | ||||
In millions | |||||
Remainder of 2021 | $ | 29 | |||
2022 | 103 | ||||
2023 | 81 | ||||
2024 | 64 | ||||
2025 | 43 | ||||
2026 and thereafter | 150 | ||||
Total lease payments | $ | 470 | |||
Less: Interest | 40 | ||||
Present value of lease liabilities | $ | 430 |
Accumulated Other Comprehensive Loss | Cumulative Translation Adj | Pension and OPEB | Derivative Instruments | Total | |||||||||||||
In millions | |||||||||||||||||
2020 | |||||||||||||||||
Balance at January 1, 2020 | $ | (1,070) | $ | (345) | $ | (1) | $ | (1,416) | |||||||||
Other comprehensive income (loss) before reclassifications | 548 | (9) | — | 539 | |||||||||||||
Amounts reclassified from accumulated other comprehensive loss | ��� | 18 | — | 18 | |||||||||||||
Net other comprehensive income | $ | 548 | $ | 9 | $ | — | $ | 557 | |||||||||
Balance at September 30, 2020 | $ | (522) | $ | (336) | $ | (1) | $ | (859) | |||||||||
2021 | |||||||||||||||||
Balance at January 1, 2021 | $ | 470 | $ | (425) | $ | (1) | $ | 44 | |||||||||
Other comprehensive (loss) income before reclassifications | (545) | 20 | 38 | (487) | |||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 3 | — | 3 | |||||||||||||
Split-off of N&B reclassification adjustment | 184 | 73 | 1 | 258 | |||||||||||||
Net other comprehensive (loss) income | $ | (361) | $ | 96 | $ | 39 | $ | (226) | |||||||||
Balance at September 30, 2021 | $ | 109 | $ | (329) | $ | 38 | $ | (182) |
Accumulated Other Comprehensive Loss 1 | Unrealized Gains on Investments | Cumulative Translation Adj | Pension and Other Postretire Benefits | Derivative Instruments | Accum Other Comp Loss | ||||||||||
In millions | |||||||||||||||
Balance at Jan 1, 2016 | $ | 47 | $ | (1,737 | ) | $ | (6,769 | ) | $ | (208 | ) | $ | (8,667 | ) | |
Other comprehensive income (loss) before reclassifications | 63 | 329 | — | (50 | ) | 342 | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (21 | ) | (4 | ) | 640 | 29 | 644 | ||||||||
Net other comprehensive income (loss) | $ | 42 | $ | 325 | $ | 640 | $ | (21 | ) | $ | 986 | ||||
Balance at Sep 30, 2016 | $ | 89 | $ | (1,412 | ) | $ | (6,129 | ) | $ | (229 | ) | $ | (7,681 | ) | |
Balance at Jan 1, 2017 | $ | 43 | $ | (2,381 | ) | $ | (7,389 | ) | $ | (95 | ) | $ | (9,822 | ) | |
Other comprehensive income (loss) before reclassifications | 50 | 255 | — | (52 | ) | 253 | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (93 | ) | (8 | ) | 308 | (5 | ) | 202 | |||||||
Net other comprehensive income (loss) | $ | (43 | ) | $ | 247 | $ | 308 | $ | (57 | ) | $ | 455 | |||
Balance at Sep 30, 2017 | $ | — | $ | (2,134 | ) | $ | (7,081 | ) | $ | (152 | ) | $ | (9,367 | ) |
Tax Benefit (Expense) | Three Months Ended | Nine Months Ended | ||||||||||
In millions | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||||||
Unrealized gains on investments | $ | (28 | ) | $ | 5 | $ | (24 | ) | $ | 23 | ||
Cumulative translation adjustments | 23 | 9 | 49 | 33 | ||||||||
Pension and other postretirement benefit plans | 48 | 46 | 143 | 136 | ||||||||
Derivative instruments | (19 | ) | 10 | 2 | (7 | ) | ||||||
Tax benefit from income taxes related to other comprehensive income items | $ | 24 | $ | 70 | $ | 170 | $ | 185 |
Reclassifications Out of Accumulated Other Comprehensive Loss | Three Months Ended September 30, | Nine Months Ended September 30, | Income Classification | ||||||||||||||
In millions | 2021 | 2020 | 2021 | 2020 | |||||||||||||
Cumulative translation adjustments | $ | — | $ | — | $ | 184 | $ | — | See (1) below | ||||||||
Pension and other post-employment benefit plans | $ | 2 | $ | 7 | $ | 110 | $ | 15 | See (1) below | ||||||||
Tax (benefit) expense | (5) | 2 | (34) | 3 | See (1) below | ||||||||||||
After tax | $ | (3) | $ | 9 | $ | 76 | $ | 18 | |||||||||
Derivative instruments | $ | — | $ | — | $ | 1 | $ | — | See (1) below | ||||||||
Total reclassifications for the period, after tax | $ | (3) | $ | 9 | $ | 261 | $ | 18 |
Reclassifications Out of Accumulated Other Comprehensive Loss | Three Months Ended | Nine Months Ended | Consolidated Statements of Income Classification | |||||||||||
In millions | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||||||||
Unrealized gains on investments | $ | (96 | ) | $ | (10 | ) | $ | (143 | ) | $ | (32 | ) | See (1) below | |
Tax expense | 33 | 3 | 50 | 11 | See (2) below | |||||||||
After-tax | $ | (63 | ) | $ | (7 | ) | $ | (93 | ) | $ | (21 | ) | ||
Cumulative translation adjustments | $ | (2 | ) | $ | — | $ | (8 | ) | $ | (4 | ) | See (3) below | ||
Pension and other postretirement benefit plans | $ | 153 | $ | 139 | $ | 451 | $ | 776 | See (4) below | |||||
Tax benefit | (48 | ) | (46 | ) | (143 | ) | (136 | ) | See (2) below | |||||
After-tax | $ | 105 | $ | 93 | $ | 308 | $ | 640 | ||||||
Derivative Instruments | $ | 14 | $ | (3 | ) | $ | (1 | ) | $ | 35 | See (5) below | |||
Tax expense (benefit) | (3 | ) | 3 | (4 | ) | (6 | ) | See (2) below | ||||||
After-tax | $ | 11 | $ | — | $ | (5 | ) | $ | 29 | |||||
Total reclassifications for the period, after-tax | $ | 51 | $ | 86 | $ | 202 | $ | 644 |
Noncontrolling Interests | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
In millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Balance at beginning of period | $ | 587 | $ | 572 | $ | 566 | $ | 569 | ||||||
Net income attributable to noncontrolling interests | 13 | 7 | 26 | 20 | ||||||||||
Contributions from noncontrolling interests | 17 | 14 | 84 | 19 | ||||||||||
Distributions to noncontrolling interests | (10) | (38) | (34) | (48) | ||||||||||
Cumulative translation adjustments | (1) | 4 | (9) | (1) | ||||||||||
Split-off of N&B | — | — | (27) | — | ||||||||||
Balance at end of period | $ | 606 | $ | 559 | $ | 606 | $ | 559 |
Noncontrolling Interests | Three Months Ended | Nine Months Ended | ||||||||||
In millions | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||||||
Balance at beginning of period | $ | 1,168 | $ | 1,298 | $ | 1,242 | $ | 809 | ||||
Net income attributable to noncontrolling interests | 20 | 14 | 85 | 54 | ||||||||
Distributions to noncontrolling interests 1 | (7 | ) | (19 | ) | (55 | ) | (71 | ) | ||||
Acquisition of noncontrolling interests 2 | — | — | — | 473 | ||||||||
Noncontrolling interests from Merger 3 | 401 | — | 401 | — | ||||||||
Deconsolidation of noncontrolling interests 4 | — | — | (119 | ) | — | |||||||
Cumulative translation adjustments | 5 | 21 | 33 | 48 | ||||||||
Other | 1 | — | 1 | 1 | ||||||||
Balance at end of period | $ | 1,588 | $ | 1,314 | $ | 1,588 | $ | 1,314 |
Plan Assets and Obligations for all Significant Plans Assumed from DuPont at Aug 31, 2017 | Defined Benefit Pension | OPEB | ||||
In millions | ||||||
Fair value of plan assets | $ | 20,395 | $ | — | ||
Projected benefit obligations | 26,072 | 2,772 | ||||
Net liability assumed | $ | (5,677 | ) | $ | (2,772 | ) |
Balance Sheet Classification for all Significant Plans Assumed from DuPont at Aug 31, 2017 | Defined Benefit Pension | OPEB | ||||
In millions | ||||||
Deferred charges and other assets | $ | 9 | $ | — | ||
Accrued and other current liabilities | (83 | ) | (275 | ) | ||
Liabilities held for sale | (8 | ) | — | |||
Pension and other postretirement benefits - noncurrent | (5,595 | ) | (2,497 | ) | ||
Net liability assumed | $ | (5,677 | ) | $ | (2,772 | ) |
Assumptions Used to Determine Benefit Obligations for DuPont's U.S. Defined Benefit Pension and OPEB Plans at Aug 31, 2017 | Defined Benefit Pension | OPEB | ||
Discount rate | 3.42 | % | 3.62 | % |
Rate of compensation increase 1 | 3.80 | % | — | % |
Health care cost trend rate assumed for next year | n/a | 7 | % | |
Rate to which the cost trend rate is assumed to decline (the ultimate health care trend rate) | n/a | 5 | % | |
Year that the rate reached the ultimate health care cost trend rate | n/a | 2023 |
Net Periodic Benefit (Credit) Cost for All Plans | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
In millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Defined Benefit Pension Plans: | ||||||||||||||
Service cost 1 | $ | 13 | $ | 20 | $ | 42 | $ | 55 | ||||||
Interest cost 2 | 11 | 14 | 32 | 42 | ||||||||||
Expected return on plan assets 3 | (26) | (28) | (80) | (82) | ||||||||||
Amortization of prior service credit 4 | (2) | (1) | (4) | (4) | ||||||||||
Amortization of net loss 5 | 3 | 3 | 9 | 11 | ||||||||||
Curtailment/settlement 6 | (1) | 6 | 2 | 8 | ||||||||||
Net periodic benefit cost - total | $ | (2) | $ | 14 | $ | 1 | $ | 30 | ||||||
Less: Net periodic benefit cost - discontinued operations | — | 4 | 1 | 11 | ||||||||||
Net periodic benefit cost - continuing operations | $ | (2) | $ | 10 | $ | — | $ | 19 | ||||||
Net Periodic Benefit Cost for All Significant Plans 1 | Three Months Ended | Nine Months Ended | ||||||||||
In millions | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||||||
Defined Benefit Pension Plans: | ||||||||||||
Service cost | $ | 139 | $ | 122 | $ | 390 | $ | 337 | ||||
Interest cost | 283 | 222 | 722 | 626 | ||||||||
Expected return on plan assets | (490 | ) | (376 | ) | (1,258 | ) | (1,074 | ) | ||||
Amortization of prior service benefit | (6 | ) | (6 | ) | (18 | ) | (18 | ) | ||||
Amortization of net loss | 161 | 147 | 476 | 441 | ||||||||
Curtailment/settlement 2 | — | — | (6 | ) | — | |||||||
Net periodic benefit cost - continuing operations | $ | 87 | $ | 109 | $ | 306 | $ | 312 | ||||
Other Postretirement Benefits: | ||||||||||||
Service cost | $ | 4 | $ | 3 | $ | 10 | $ | 9 | ||||
Interest cost | 20 | 14 | 47 | 38 | ||||||||
Amortization of prior service benefit | — | (1 | ) | — | (2 | ) | ||||||
Amortization of net gain | (2 | ) | (1 | ) | (5 | ) | (5 | ) | ||||
Net periodic benefit cost - continuing operations | $ | 22 | $ | 15 | $ | 52 | $ | 40 |
Fair Value of Financial Instruments | September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||
In millions | Cost | Gain | Loss | Fair Value | Cost | Gain | Loss | Fair Value | ||||||||||||||||||
Cash equivalents | $ | 469 | $ | — | $ | — | $ | 469 | $ | 1,105 | $ | — | $ | — | $ | 1,105 | ||||||||||
Restricted cash equivalents 1 | $ | 68 | $ | — | $ | — | $ | 68 | $ | 6,223 | $ | — | $ | — | $ | 6,223 | ||||||||||
Total cash equivalents and restricted cash equivalents | $ | 537 | $ | — | $ | — | $ | 537 | $ | 7,328 | $ | — | $ | — | $ | 7,328 | ||||||||||
Long-term debt including debt due within one year | $ | (10,630) | $ | — | $ | (2,201) | $ | (12,831) | $ | (15,612) | $ | — | $ | (2,725) | $ | (18,337) | ||||||||||
Derivatives relating to: | ||||||||||||||||||||||||||
Net investment hedge 2 | — | 51 | — | 51 | — | — | — | — | ||||||||||||||||||
Foreign currency 3,4 | — | — | (14) | (14) | — | 4 | (13) | (9) | ||||||||||||||||||
Total derivatives | $ | — | $ | 51 | $ | (14) | $ | 37 | $ | — | $ | 4 | $ | (13) | $ | (9) |
Fair Value of Financial Instruments | Sep 30, 2017 | Dec 31, 2016 | ||||||||||||||||||||||
In millions | Cost | Gain | Loss | Fair Value | Cost | Gain | Loss | Fair Value | ||||||||||||||||
Other investments: | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
Government debt 1 | $ | 597 | $ | 14 | $ | (8 | ) | $ | 603 | $ | 607 | $ | 13 | $ | (12 | ) | $ | 608 | ||||||
Corporate bonds | 630 | 32 | (2 | ) | 660 | 623 | 27 | (5 | ) | 645 | ||||||||||||||
Total debt securities | $ | 1,227 | $ | 46 | $ | (10 | ) | $ | 1,263 | $ | 1,230 | $ | 40 | $ | (17 | ) | $ | 1,253 | ||||||
Equity securities | 169 | 3 | (27 | ) | 145 | 658 | 98 | (50 | ) | 706 | ||||||||||||||
Total other investments | $ | 1,396 | $ | 49 | $ | (37 | ) | $ | 1,408 | $ | 1,888 | $ | 138 | $ | (67 | ) | $ | 1,959 | ||||||
Long-term debt including debt due within one year 2 | $ | (31,725 | ) | $ | 49 | $ | (2,178 | ) | $ | (33,854 | ) | $ | (21,091 | ) | $ | 129 | $ | (1,845 | ) | $ | (22,807 | ) | ||
Derivatives relating to: | ||||||||||||||||||||||||
Interest rates | $ | — | $ | — | $ | (4 | ) | $ | (4 | ) | $ | — | $ | — | $ | (5 | ) | $ | (5 | ) | ||||
Commodities 3 | $ | — | $ | 124 | $ | (277 | ) | $ | (153 | ) | $ | — | $ | 56 | $ | (213 | ) | $ | (157 | ) | ||||
Foreign currency | $ | — | $ | 68 | $ | (164 | ) | $ | (96 | ) | $ | — | $ | 84 | $ | (30 | ) | $ | 54 |
Investing Results | Nine Months Ended | |||||
In millions | Sep 30, 2017 | Sep 30, 2016 | ||||
Proceeds from sales of available-for-sale securities | $ | 1,047 | $ | 418 | ||
Gross realized gains | $ | 153 | $ | 34 | ||
Gross realized losses | $ | (10 | ) | $ | (2 | ) |
Contractual Maturities of Debt Securities at Sep 30, 2017 | Amortized Cost | Fair Value | ||||
In millions | ||||||
Within one year | $ | 6 | $ | 6 | ||
One to five years | 321 | 330 | ||||
Six to ten years | 654 | 661 | ||||
After ten years | 246 | 266 | ||||
Total | $ | 1,227 | $ | 1,263 |
Notional Amounts | September 30, 2021 | December 31, 2020 | ||||||
In millions | ||||||||
Derivatives designated as hedging instruments: | ||||||||
Net investment hedge | $ | 1,000 | $ | — | ||||
Derivatives not designated as hedging instruments: | ||||||||
Foreign currency contracts 1 | $ | (1,280) | $ | (304) | ||||
Notional Amounts | Sep 30, 2017 | Dec 31, 2016 | ||||
In millions | ||||||
Derivatives designated as hedging instruments: | ||||||
Interest rate swaps | $ | 218 | $ | 245 | ||
Foreign currency contracts | $ | 8,510 | $ | 4,053 | ||
Derivatives not designated as hedging instruments: | ||||||
Foreign currency contracts | $ | 37,667 | $ | 12,388 |
Commodity Gross Aggregate Notionals | Sep 30, 2017 | Dec 31, 2016 | Notional Volume Unit | ||
Derivatives designated as hedging instruments: | |||||
Corn | 3.3 | 0.4 | million bushels | ||
Crude Oil | 4.9 | 0.6 | million barrels | ||
Ethane | 10.8 | 3.6 | million barrels | ||
Natural Gas | 389.4 | 78.6 | million British thermal units | ||
Propane | 5.4 | 1.5 | millions barrels | ||
Soybeans | 2.1 | — | million bushels | ||
Derivatives not designated as hedging instruments: | |||||
Ethane | 2.9 | 2.6 | million barrels | ||
Gasoline | — | 30.0 | kilotons | ||
Naptha Price Spread | 30.0 | 50.0 | kilotons | ||
Natural Gas | 3.8 | — | million British thermal units | ||
Propane | 2.9 | 2.7 | million barrels | ||
Soybean | 0.5 | — | million bushels | ||
Soybean Oil | 3.3 | — | million pounds | ||
Soybean Meal | 4.8 | — | kilotons |
Fair Value of Derivative Instruments | Sep 30, 2017 | |||||||||
In millions | Balance Sheet Classification | Gross | Counterparty and Cash Collateral Netting 1 | Net Amounts Included in the Consolidated Balance Sheet | ||||||
Asset derivatives: | ||||||||||
Derivatives designated as hedging instruments | ||||||||||
Foreign currency contracts | Other current assets | $ | 63 | $ | (57 | ) | $ | 6 | ||
Commodity contracts | Other current assets | 24 | (6 | ) | 18 | |||||
Commodity contracts | Deferred charges and other assets | 35 | (5 | ) | 30 | |||||
Total | $ | 122 | $ | (68 | ) | $ | 54 | |||
Derivatives not designated as hedging instruments | ||||||||||
Foreign currency contracts | Other current assets | $ | 226 | $ | (164 | ) | $ | 62 | ||
Commodity contracts | Other current assets | 70 | (3 | ) | 67 | |||||
Commodity contracts | Deferred charges and other assets | 11 | (2 | ) | 9 | |||||
Total | $ | 307 | $ | (169 | ) | $ | 138 | |||
Total asset derivatives | $ | 429 | $ | (237 | ) | $ | 192 | |||
Liability derivatives: | ||||||||||
Derivatives designated as hedging instruments | ||||||||||
Interest rate swaps | Accrued and other current liabilities | $ | 2 | $ | — | $ | 2 | |||
Interest rate swaps | Other noncurrent obligations | 2 | — | 2 | ||||||
Foreign currency contracts | Accrued and other current liabilities | 129 | (57 | ) | 72 | |||||
Commodity contracts | Accrued and other current liabilities | 71 | (9 | ) | 62 | |||||
Commodity contracts | Other noncurrent obligations | 157 | (6 | ) | 151 | |||||
Total | $ | 361 | $ | (72 | ) | $ | 289 | |||
Derivatives not designated as hedging instruments | ||||||||||
Foreign currency contracts | Accrued and other current liabilities | $ | 255 | $ | (163 | ) | $ | 92 | ||
Commodity contracts | Accrued and other current liabilities | 66 | (2 | ) | 64 | |||||
Commodity contracts | Other noncurrent obligations | 2 | (2 | ) | — | |||||
Total | $ | 323 | $ | (167 | ) | $ | 156 | |||
Total liability derivatives | $ | 684 | $ | (239 | ) | $ | 445 |
Fair Value of Derivative Instruments | Dec 31, 2016 | |||||||||
In millions | Balance Sheet Classification 1 | Gross | Counterparty and Cash Collateral Netting 2 | Net Amounts Included in the Consolidated Balance Sheet | ||||||
Asset derivatives: | ||||||||||
Derivatives designated as hedging instruments | ||||||||||
Foreign currency contracts | Other current assets | $ | 90 | $ | (47 | ) | $ | 43 | ||
Commodity contracts | Other current assets | 42 | (14 | ) | 28 | |||||
Commodity contracts | Deferred charges and other assets | 10 | (3 | ) | 7 | |||||
Total | $ | 142 | $ | (64 | ) | $ | 78 | |||
Derivatives not designated as hedging instruments | ||||||||||
Foreign currency contracts | Accounts and notes receivable - Other | $ | 103 | $ | (62 | ) | $ | 41 | ||
Commodity contracts | Other current assets | 13 | (2 | ) | 11 | |||||
Commodity contracts | Deferred charges and other assets | 12 | (2 | ) | 10 | |||||
Total | $ | 128 | $ | (66 | ) | $ | 62 | |||
Total asset derivatives | $ | 270 | $ | (130 | ) | $ | 140 | |||
Liability derivatives: | ||||||||||
Derivatives designated as hedging instruments | ||||||||||
Interest rate swaps | Accrued and other current liabilities | $ | 3 | $ | — | $ | 3 | |||
Interest rate swaps | Other noncurrent obligations | 2 | — | 2 | ||||||
Foreign currency contracts | Accrued and other current liabilities | 55 | (47 | ) | 8 | |||||
Commodity contracts | Accrued and other current liabilities | 32 | (14 | ) | 18 | |||||
Commodity contracts | Other noncurrent obligations | 196 | (3 | ) | 193 | |||||
Total | $ | 288 | $ | (64 | ) | $ | 224 | |||
Derivatives not designated as hedging instruments | ||||||||||
Foreign currency contracts | Accrued and other current liabilities | $ | 84 | $ | (62 | ) | $ | 22 | ||
Commodity contracts | Accrued and other current liabilities | 4 | (2 | ) | 2 | |||||
Commodity contracts | Other noncurrent obligations | 2 | (2 | ) | — | |||||
Total | $ | 90 | $ | (66 | ) | $ | 24 | |||
Total liability derivatives | $ | 378 | $ | (130 | ) | $ | 248 |
Effect of Derivative Instruments | Amount of Gain (Loss) Recognized in OCI 1 (Effective Portion) | Amount of Gain (Loss) Recognized in Income 2,3 | |||||||||||
Three Months Ended | Three Months Ended | ||||||||||||
In millions | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | Income Statement Classification | ||||||||
Derivatives designated as hedging instruments: | |||||||||||||
Fair value hedges: | |||||||||||||
Interest rate swaps | $ | — | $ | — | $ | 2 | $ | — | Interest expense and amortization of debt discount 4 | ||||
Cash flow hedges: | |||||||||||||
Interest rate swaps | 1 | 1 | 1 | 1 | Interest expense and amortization of debt discount 4 | ||||||||
Foreign currency contracts | (7 | ) | (1 | ) | (2 | ) | (4 | ) | Cost of sales | ||||
Foreign currency contracts | (7 | ) | — | (5 | ) | (1 | ) | Sundry income (expense) - net | |||||
Commodity contracts | 40 | (20 | ) | (5 | ) | 7 | Cost of sales | ||||||
Net investment hedges: | |||||||||||||
Foreign currency contracts | (30 | ) | — | — | — | ||||||||
Total derivatives designated as hedging instruments | $ | (3 | ) | $ | (20 | ) | $ | (9 | ) | $ | 3 | ||
Derivatives not designated as hedging instruments: | |||||||||||||
Foreign currency contracts | $ | — | $ | — | $ | (6 | ) | $ | (21 | ) | Sundry income (expense) - net | ||
Commodity contracts | — | — | 19 | (4 | ) | Cost of sales | |||||||
Total derivatives not designated as hedging instruments | $ | — | $ | — | $ | 13 | $ | (25 | ) | ||||
Total derivatives | $ | (3 | ) | $ | (20 | ) | $ | 4 | $ | (22 | ) |
Effect of Derivative Instruments | Amount of Gain (Loss) Recognized in OCI 1 (Effective Portion) | Amount of Gain (Loss) Recognized in Income 2,3 | |||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||
In millions | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | Income Statement Classification | ||||||||
Derivatives designated as hedging instruments: | |||||||||||||
Fair value hedges: | |||||||||||||
Interest rate swaps | $ | — | $ | — | $ | 5 | $ | — | Interest expense and amortization of debt discount 4 | ||||
Cash flow hedges: | |||||||||||||
Interest rate swaps | 5 | 1 | 3 | 3 | Interest expense and amortization of debt discount 4 | ||||||||
Foreign currency contracts | (27 | ) | (11 | ) | 13 | (3 | ) | Cost of sales | |||||
Foreign currency contracts | (21 | ) | — | (14 | ) | — | Sundry income (expense) - net | ||||||
Commodity contracts | — | 7 | (1 | ) | (32 | ) | Cost of sales | ||||||
Net investment hedges: | |||||||||||||
Foreign currency contracts | (65 | ) | — | — | — | ||||||||
Total derivatives designated as hedging instruments | $ | (108 | ) | $ | (3 | ) | $ | 6 | $ | (32 | ) | ||
Derivatives not designated as hedging instruments: | |||||||||||||
Foreign currency contracts | $ | — | $ | — | $ | (165 | ) | $ | (53 | ) | Sundry income (expense) - net | ||
Commodity contracts | — | — | 5 | (12 | ) | Cost of sales | |||||||
Total derivatives not designated as hedging instruments | $ | — | $ | — | $ | (160 | ) | $ | (65 | ) | |||
Total derivatives | $ | (108 | ) | $ | (3 | ) | $ | (154 | ) | $ | (97 | ) |
Basis of Fair Value Measurements on a Recurring Basis at September 30, 2021 | Significant Other Observable Inputs (Level 2) | ||||||||||
In millions | |||||||||||
Assets at fair value: | |||||||||||
Cash equivalents and restricted cash equivalents 1 | $ | 537 | |||||||||
Derivatives relating to: 2 | |||||||||||
Net investment hedge | 51 | ||||||||||
Foreign currency contracts 3 | 7 | ||||||||||
Total assets at fair value | $ | 595 | |||||||||
Liabilities at fair value: | |||||||||||
Long-term debt including debt due within one year 4 | $ | 12,831 | |||||||||
Derivatives relating to: 2 | |||||||||||
Net investment hedge | — | ||||||||||
Foreign currency contracts 3 | 21 | ||||||||||
Total liabilities at fair value | $ | 12,852 |
Basis of Fair Value Measurements on a Recurring Basis at Sep 30, 2017 | Quoted Prices in Active Markets for Identical Items (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||
In millions | ||||||||||||
Assets at fair value: | ||||||||||||
Cash equivalents 1 | $ | — | $ | 7,947 | $ | — | $ | 7,947 | ||||
Marketable securities 2 | — | 1,826 | — | 1,826 | ||||||||
Interests in trade accounts receivable conduits 3 | — | — | 1,839 | 1,839 | ||||||||
Equity securities 4 | 94 | 51 | — | 145 | ||||||||
Debt securities: 4 | ||||||||||||
Government debt 5 | — | 603 | — | 603 | ||||||||
Corporate bonds | — | 660 | — | 660 | ||||||||
Derivatives relating to: 6 | ||||||||||||
Commodities | 41 | 99 | — | 140 | ||||||||
Foreign currency | — | 214 | — | 214 | ||||||||
Total assets at fair value | $ | 135 | $ | 11,400 | $ | 1,839 | $ | 13,374 | ||||
Liabilities at fair value: | ||||||||||||
Long-term debt 7 | $ | — | $ | 33,854 | $ | — | $ | 33,854 | ||||
Derivatives relating to: 6 | ||||||||||||
Interest rates | — | 4 | — | 4 | ||||||||
Commodities | 22 | 274 | — | 296 | ||||||||
Foreign currency | — | 309 | — | 309 | ||||||||
Total liabilities at fair value | $ | 22 | $ | 34,441 | $ | — | $ | 34,463 |
Basis of Fair Value Measurements on a Recurring Basis at December 31, 2020 | Significant Other Observable Inputs (Level 2) | ||||
In millions | |||||
Assets at fair value: | |||||
Cash equivalents and restricted cash equivalents 1 | $ | 7,328 | |||
Foreign currency contracts 3 |
13 | |||
7,341 | |||
Liabilities at fair value: | |||
Long-term debt including debt due within one year 4 |
18,337 | |||
Basis of Fair Value Measurements on a Recurring Basis at Dec 31, 2016 | Quoted Prices in Active Markets for Identical Items (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||
In millions | ||||||||||||
Assets at fair value: | ||||||||||||
Cash equivalents 1 | $ | — | $ | 4,173 | $ | — | $ | 4,173 | ||||
Interests in trade accounts receivable conduits 2 | — | — | 1,237 | 1,237 | ||||||||
Equity securities 3 | 619 | 87 | — | 706 | ||||||||
Debt securities: 3 | ||||||||||||
Government debt 4 | — | 608 | — | 608 | ||||||||
Corporate bonds | — | 645 | — | 645 | ||||||||
Derivatives relating to: 5 | ||||||||||||
Commodities | 48 | 29 | — | 77 | ||||||||
Foreign currency | — | 193 | — | 193 | ||||||||
Total assets at fair value | $ | 667 | $ | 5,735 | $ | 1,237 | $ | 7,639 | ||||
Liabilities at fair value: | ||||||||||||
Long-term debt 6 | $ | — | $ | 22,807 | $ | — | $ | 22,807 | ||||
Derivatives relating to: 5 | ||||||||||||
Interest rates | — | 5 | — | 5 | ||||||||
Commodities | 20 | 214 | — | 234 | ||||||||
Foreign currency | — | 139 | — | 139 | ||||||||
Total liabilities at fair value | $ | 20 | $ | 23,165 | $ | — | $ | 23,185 |
Foreign currency contracts 3 |
22 | |||
18,359 | |
Fair Value Measurements Using Level 3 Inputs for Interests Held in Trade Receivable Conduits 1 | Three Months Ended | Nine Months Ended | ||||||||||
Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | |||||||||
In millions | ||||||||||||
Balance at beginning of period | $ | 1,684 | $ | 1,149 | $ | 1,237 | $ | 943 | ||||
Loss included in earnings 2 | (15 | ) | — | (17 | ) | (1 | ) | |||||
Purchases | 305 | 480 | 1,558 | 1,440 | ||||||||
Settlements | (135 | ) | (129 | ) | (939 | ) | (882 | ) | ||||
Balance at end of period | $ | 1,839 | $ | 1,500 | $ | 1,839 | $ | 1,500 |
Assets and Liabilities of Consolidated VIEs | Sep 30, 2017 | Dec 31, 2016 | ||||
In millions | ||||||
Cash and cash equivalents | $ | 115 | $ | 75 | ||
Other current assets | 100 | 95 | ||||
Net property | 925 | 961 | ||||
Other noncurrent assets | 51 | 55 | ||||
Total assets 1 | $ | 1,191 | $ | 1,186 | ||
Current liabilities | $ | 255 | $ | 286 | ||
Long-Term debt | 310 | 330 | ||||
Other noncurrent obligations | 43 | 47 | ||||
Total liabilities 2 | $ | 608 | $ | 663 |
Segment Information | Elect. & Industrial | Water & Protection | Mobility & Materials | Corporate 1 | Total | ||||||||||||
In millions | |||||||||||||||||
Three months ended September 30, 2021 | |||||||||||||||||
Net sales | $ | 1,467 | $ | 1,397 | $ | 1,298 | $ | 109 | $ | 4,271 | |||||||
Operating EBITDA 2 | $ | 475 | $ | 353 | $ | 280 | $ | (21) | $ | 1,087 | |||||||
Equity in earnings of nonconsolidated affiliates | $ | 13 | $ | 7 | $ | 3 | $ | 2 | $ | 25 | |||||||
Three months ended September 30, 2020 | |||||||||||||||||
Net sales | $ | 1,213 | $ | 1,249 | $ | 996 | $ | 171 | $ | 3,629 | |||||||
Operating EBITDA 2 | $ | 421 | $ | 314 | $ | 160 | $ | 11 | $ | 906 | |||||||
Equity in earnings of nonconsolidated affiliates | $ | 8 | $ | 7 | $ | 5 | $ | 9 | $ | 29 | |||||||
Nine months ended September 30, 2021 | |||||||||||||||||
Net sales | $ | 4,087 | $ | 4,137 | $ | 3,783 | $ | 375 | $ | 12,382 | |||||||
Operating EBITDA 2 | $ | 1,335 | $ | 1,060 | $ | 852 | $ | (50) | $ | 3,197 | |||||||
Equity in earnings of nonconsolidated affiliates | $ | 32 | $ | 27 | $ | 11 | $ | 6 | $ | 76 | |||||||
Nine months ended September 30, 2020 | |||||||||||||||||
Net sales | $ | 3,439 | $ | 3,769 | $ | 2,877 | $ | 503 | $ | 10,588 | |||||||
Operating EBITDA 2 | $ | 1,084 | $ | 1,010 | $ | 352 | $ | 62 | $ | 2,508 | |||||||
Equity in earnings of nonconsolidated affiliates | $ | 27 | $ | 19 | $ | 13 | $ | 111 | $ | 170 |
Reconciliation of "Income (loss) from continuing operations, net of tax" to Operating EBITDA for the Three Months Ended September 30, 2021 and 2020 | Three Months Ended September 30, | ||||||||||
In millions | 2021 | 2020 | |||||||||
Income from continuing operations, net of tax | $ | 433 | $ | 86 | |||||||
+ | Provision for income taxes on continuing operations | 125 | 122 | ||||||||
Income from continuing operations before income taxes | $ | 558 | $ | 208 | |||||||
+ | Depreciation and amortization | 370 | 345 | ||||||||
- | Interest income 1 | — | 4 | ||||||||
+ | Interest expense | 115 | 165 | ||||||||
- | Non-operating pension/OPEB benefit 1 | 14 | 4 | ||||||||
- | Foreign exchange losses, net 1 | (19) | (6) | ||||||||
- | Significant items | (39) | (190) | ||||||||
Operating EBITDA | $ | 1,087 | $ | 906 |
Reconciliation of "Income (loss) from continuing operations, net of tax" to Operating EBITDA for the Nine Months Ended September 30, 2021 and 2020 | Nine Months Ended September 30, | ||||||||||
In millions | 2021 | 2020 | |||||||||
Income (Loss) from continuing operations, net of tax | $ | 1,538 | $ | (2,853) | |||||||
+ | Provision for income taxes on continuing operations | 308 | 224 | ||||||||
Income (Loss) from continuing operations before income taxes | $ | 1,846 | $ | (2,629) | |||||||
+ | Depreciation and amortization | 1,031 | 1,039 | ||||||||
- | Interest income 1 | 4 | 8 | ||||||||
+ | Interest expense | 390 | 517 | ||||||||
- | Non-operating pension/OPEB benefit 1 | 39 | 23 | ||||||||
- | Foreign exchange losses, net 1 | (36) | (27) | ||||||||
- | Significant items | 63 | (3,585) | ||||||||
Operating EBITDA | $ | 3,197 | $ | 2,508 |
Segment Information | Agri-culture | Perf. Materials & Coatings | Ind. Interm. & Infrast. | Pack. & Spec. Plastics | Elect. & Imaging | Nutrition & Biosciences | Transp. & Adv. Polymers | Safety & Const. | Corp. | Total | ||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||
Three months ended Sep 30, 2017 | ||||||||||||||||||||||||||||||
Net sales | $ | 1,532 | $ | 2,228 | $ | 3,228 | $ | 5,260 | $ | 832 | $ | 689 | $ | 636 | $ | 792 | $ | 157 | $ | 15,354 | ||||||||||
Pro forma net sales | $ | 1,911 | $ | 2,219 | $ | 3,226 | $ | 5,490 | $ | 1,198 | $ | 1,473 | $ | 1,299 | $ | 1,310 | $ | 159 | $ | 18,285 | ||||||||||
Pro forma Operating EBITDA 1 | $ | (239 | ) | $ | 487 | $ | 676 | $ | 1,147 | $ | 382 | $ | 315 | $ | 325 | $ | 351 | $ | (223 | ) | $ | 3,221 | ||||||||
Equity in earnings (losses) of nonconsolidated affiliates | $ | (5 | ) | $ | 39 | $ | 41 | $ | 64 | $ | — | $ | 3 | $ | 1 | $ | (1 | ) | $ | 10 | $ | 152 | ||||||||
Three months ended Sep 30, 2016 | ||||||||||||||||||||||||||||||
Net sales | $ | 1,233 | $ | 2,058 | $ | 2,773 | $ | 4,702 | $ | 646 | $ | 248 | $ | 273 | $ | 479 | $ | 71 | $ | 12,483 | ||||||||||
Pro forma net sales | $ | 1,998 | $ | 2,046 | $ | 2,770 | $ | 5,070 | $ | 1,138 | $ | 1,469 | $ | 1,187 | $ | 1,238 | $ | 75 | $ | 16,991 | ||||||||||
Pro forma Operating EBITDA 1 | $ | (172 | ) | $ | 345 | $ | 401 | $ | 1,386 | $ | 341 | $ | 321 | $ | 303 | $ | 282 | $ | (185 | ) | $ | 3,022 | ||||||||
Equity in earnings (losses) of nonconsolidated affiliates | $ | 5 | $ | 31 | $ | (7 | ) | $ | 39 | $ | — | $ | 3 | $ | — | $ | — | $ | (1 | ) | $ | 70 | ||||||||
Nine months ended Sep 30, 2017 | ||||||||||||||||||||||||||||||
Net sales | $ | 4,729 | $ | 6,580 | $ | 9,094 | $ | 15,364 | $ | 2,164 | $ | 1,223 | $ | 1,224 | $ | 1,716 | $ | 324 | $ | 42,418 | ||||||||||
Pro forma net sales | $ | 11,555 | $ | 6,537 | $ | 9,086 | $ | 16,300 | $ | 3,583 | $ | 4,391 | $ | 3,834 | $ | 3,852 | $ | 331 | $ | 59,469 | ||||||||||
Pro forma Operating EBITDA 1 | $ | 2,387 | $ | 1,508 | $ | 1,605 | $ | 3,424 | $ | 1,119 | $ | 950 | $ | 954 | $ | 905 | $ | (624 | ) | $ | 12,228 | |||||||||
Equity in earnings (losses) of nonconsolidated affiliates | $ | (1 | ) | $ | 171 | $ | 101 | $ | 130 | $ | — | $ | 9 | $ | 1 | $ | (1 | ) | $ | (8 | ) | $ | 402 | |||||||
Nine months ended Sep 30, 2016 | ||||||||||||||||||||||||||||||
Net sales | $ | 4,456 | $ | 4,480 | $ | 8,024 | $ | 13,561 | $ | 1,647 | $ | 741 | $ | 629 | $ | 1,399 | $ | 201 | $ | 35,138 | ||||||||||
Pro forma net sales | $ | 11,396 | $ | 4,440 | $ | 8,015 | $ | 14,636 | $ | 3,084 | $ | 4,313 | $ | 3,316 | $ | 3,748 | $ | 212 | $ | 53,160 | ||||||||||
Pro forma Operating EBITDA 1 | $ | 2,222 | $ | 836 | $ | 1,183 | $ | 3,856 | $ | 842 | $ | 918 | $ | 769 | $ | 903 | $ | (600 | ) | $ | 10,929 | |||||||||
Equity in earnings (losses) of nonconsolidated affiliates | $ | 5 | $ | 126 | $ | (49 | ) | $ | 83 | $ | 24 | $ | 8 | $ | 9 | $ | 1 | $ | (16 | ) | $ | 191 |
Reconciliation of "Income from continuing operations, net of tax" to Pro Forma Operating EBITDA | Three Months Ended | Nine Months Ended | ||||||||||
Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | |||||||||
In millions | ||||||||||||
Income from continuing operations, net of tax | $ | 554 | $ | 818 | $ | 2,828 | $ | 4,320 | ||||
+ Provision for income taxes on continuing operations | 571 | 271 | 1,239 | 291 | ||||||||
Income from continuing operations before income taxes | $ | 1,125 | $ | 1,089 | $ | 4,067 | $ | 4,611 | ||||
+ Depreciation and amortization | 1,001 | 780 | 2,518 | 2,067 | ||||||||
- Interest income 1 | 39 | 26 | 86 | 64 | ||||||||
+ Interest expense and amortization of debt discount | 283 | 220 | 728 | 629 | ||||||||
- Foreign exchange gains (losses), net 1 | 72 | (37 | ) | 16 | (102 | ) | ||||||
+ Pro forma adjustments | 134 | 306 | 3,179 | 3,871 | ||||||||
Pro forma EBITDA | $ | 2,432 | $ | 2,406 | $ | 10,390 | $ | 11,216 | ||||
- Adjusted significant items 2 | (789 | ) | (616 | ) | (1,838 | ) | 287 | |||||
Pro forma Operating EBITDA | $ | 3,221 | $ | 3,022 | $ | 12,228 | $ | 10,929 |
Significant Items by Segment for the Three Months Ended September 30, 2021 | Elect. & Industrial | Water & Protection | Mobility & Materials | Corporate | Total | ||||||||||||
In millions | |||||||||||||||||
Acquisition, integration and separation costs 1 | $ | — | $ | — | $ | — | $ | (29) | $ | (29) | |||||||
Restructuring and asset related charges - net 2 | — | — | (1) | — | (1) | ||||||||||||
Merger-related inventory step-up amortization 3 | (12) | — | — | — | (12) | ||||||||||||
Gain on divestiture 4 | — | — | — | 3 | 3 | ||||||||||||
Total | $ | (12) | $ | — | $ | (1) | $ | (26) | $ | (39) |
Significant Items by Segment for the Three Months Ended September 30, 2020 | Elect. & Industrial | Water & Protection | Mobility & Materials | Corporate | Total | ||||||||||||
In millions | |||||||||||||||||
Acquisition, integration and separation costs 1 | $ | — | $ | — | $ | — | $ | (22) | $ | (22) | |||||||
Restructuring and asset related charges - net 2 | (1) | (2) | — | (5) | (8) | ||||||||||||
Goodwill impairment charges 3 | — | — | — | (183) | (183) | ||||||||||||
Asset impairment charges 4 | — | — | (318) | (52) | (370) | ||||||||||||
Gain on divestiture 5 | — | — | — | 393 | 393 | ||||||||||||
Total | $ | (1) | $ | (2) | $ | (318) | $ | 131 | $ | (190) |
Significant Items by Segment for the Nine Months Ended September 30, 2021 | Elect. & Industrial | Water & Protection | Mobility & Materials | Corporate | Total | ||||||||||||
In millions | |||||||||||||||||
Acquisition, integration and separation costs 1 | $ | — | $ | — | $ | — | $ | (58) | $ | (58) | |||||||
Restructuring and asset related charges - net 2 | (2) | — | (7) | (4) | (13) | ||||||||||||
Merger-related inventory step-up amortization 3 | (12) | — | — | — | (12) | ||||||||||||
Gain on divestiture 4 | 2 | — | — | 144 | 146 | ||||||||||||
Total | $ | (12) | $ | — | $ | (7) | $ | 82 | $ | 63 |
Significant Items by Segment for the Nine Months Ended September 30, 2020 | Elect. & Industrial | Water & Protection | Mobility & Materials | Corporate | Total | ||||||||||||
In millions | |||||||||||||||||
Acquisition, integration and separation costs 1 | $ | — | $ | — | $ | — | $ | (161) | $ | (161) | |||||||
Restructuring and asset related charges - net 2 | (2) | (15) | (15) | (107) | (139) | ||||||||||||
Goodwill impairment charges 3 | (834) | — | (1,664) | (716) | (3,214) | ||||||||||||
Asset impairment charges 4 | — | — | (339) | (322) | (661) | ||||||||||||
Gain on divestiture 5 | 197 | — | — | 393 | 590 | ||||||||||||
Total | $ | (639) | $ | (15) | $ | (2,018) | $ | (913) | $ | (3,585) |
Adjusted Significant Items by Segment for the Three Months Ended Sep 30, 2017 | Agri-culture | Perf. Materials & Coatings | Ind. Interm. & Infrast. | Pack. & Spec. Plastics | Elect. & Imaging | Nutrition & Biosciences | Transp. & Adv. Polymers | Safety & Const. | Corp. | Total | ||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||
Gain on sale of business/entity 1 | $ | — | $ | — | $ | — | $ | 227 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 227 | ||||||||||
Integration and separation costs 2 | — | — | — | — | — | — | — | — | (459 | ) | (459 | ) | ||||||||||||||||||
Inventory step-up amortization 3 | (83 | ) | — | — | (28 | ) | (50 | ) | (104 | ) | (68 | ) | (34 | ) | — | (367 | ) | |||||||||||||
Restructuring and asset related charges - net 4 | — | — | — | — | — | — | — | — | (180 | ) | (180 | ) | ||||||||||||||||||
Transaction costs and productivity actions 5 | — | — | — | — | — | — | — | — | (10 | ) | (10 | ) | ||||||||||||||||||
Total | $ | (83 | ) | $ | — | $ | — | $ | 199 | $ | (50 | ) | $ | (104 | ) | $ | (68 | ) | $ | (34 | ) | $ | (649 | ) | $ | (789 | ) |
Adjusted Significant Items by Segment for the Three Months Ended Sep 30, 2016 | Agri-culture | Perf. Materials & Coatings | Ind. Interm. & Infrast. | Pack. & Spec. Plastics | Elect. & Imaging | Nutrition & Biosciences | Transp. & Adv. Polymers | Safety & Const. | Corp. | Total | ||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||
Asset impairments and other charges 1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (158 | ) | $ | — | $ | — | $ | — | $ | (158 | ) | ||||||||
Impact of Dow Corning ownership restructure 2 | — | (140 | ) | — | — | (44 | ) | — | (28 | ) | — | — | (212 | ) | ||||||||||||||||
Integration and separation costs 3 | — | — | — | — | — | — | — | — | (160 | ) | (160 | ) | ||||||||||||||||||
Restructuring and asset related charges - net 4 | (14 | ) | — | — | — | (2 | ) | — | — | 1 | (2 | ) | (17 | ) | ||||||||||||||||
Transaction costs and productivity actions 5 | — | — | — | — | — | — | — | — | (69 | ) | (69 | ) | ||||||||||||||||||
Total | $ | (14 | ) | $ | (140 | ) | $ | — | $ | — | $ | (46 | ) | $ | (158 | ) | $ | (28 | ) | $ | 1 | $ | (231 | ) | $ | (616 | ) |
Adjusted Significant Items by Segment for the Nine Months Ended Sep 30, 2017 | Agri-culture | Perf. Materials & Coatings | Ind. Interm. & Infrast. | Pack. & Spec. Plastics | Elect. & Imaging | Nutrition & Biosciences | Transp. & Adv. Polymers | Safety & Const. | Corp. | Total | ||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||
Gain on sale of business/entity 1 | $ | — | $ | — | $ | — | $ | 227 | $ | — | $ | 162 | $ | — | $ | — | $ | 7 | $ | 396 | ||||||||||
Integration and separation costs 2 | — | — | — | — | — | — | — | — | (997 | ) | (997 | ) | ||||||||||||||||||
Inventory step-up amortization 3 | (83 | ) | — | — | (28 | ) | (50 | ) | (104 | ) | (68 | ) | (34 | ) | — | (367 | ) | |||||||||||||
Litigation related charges, awards and adjustments 4 | (469 | ) | — | — | 137 | — | — | — | — | — | (332 | ) | ||||||||||||||||||
Restructuring and asset related charges - net 5 | — | 3 | — | — | (3 | ) | (6 | ) | (4 | ) | (265 | ) | (205 | ) | (480 | ) | ||||||||||||||
Transaction costs and productivity actions 6 | — | — | — | — | — | — | — | — | (58 | ) | (58 | ) | ||||||||||||||||||
Total | $ | (552 | ) | $ | 3 | $ | — | $ | 336 | $ | (53 | ) | $ | 52 | $ | (72 | ) | $ | (299 | ) | $ | (1,253 | ) | $ | (1,838 | ) |
Adjusted Significant Items by Segment for the Nine Months Ended Sep 30, 2016 | Agri-culture | Perf. Materials & Coatings | Ind. Interm. & Infrast. | Pack. & Spec. Plastics | Elect. & Imaging | Nutrition & Biosciences | Transp. & Adv. Polymers | Safety & Const. | Corp. | Total | ||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||
Asset impairments and other charges 1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (158 | ) | $ | — | $ | — | $ | — | $ | (158 | ) | ||||||||
Customer claims adjustment/recovery 2 | 53 | — | — | — | — | — | — | — | — | 53 | ||||||||||||||||||||
Gain on sale of business/entity 3 | — | — | 6 | — | — | — | — | — | 369 | 375 | ||||||||||||||||||||
Impact of Dow Corning ownership restructure 4 | — | 1,389 | — | — | 438 | — | 279 | — | — | 2,106 | ||||||||||||||||||||
Integration and separation costs 5 | — | — | — | — | — | — | — | — | (253 | ) | (253 | ) | ||||||||||||||||||
Litigation related charges, awards and adjustments 6 | — | — | (1,235 | ) | — | — | — | — | — | — | (1,235 | ) | ||||||||||||||||||
Restructuring and asset related charges - net 7 | (102 | ) | (42 | ) | (83 | ) | (10 | ) | (2 | ) | (1 | ) | (7 | ) | — | (214 | ) | (461 | ) | |||||||||||
Transaction costs and productivity actions 8 | — | — | — | — | — | — | — | — | (140 | ) | (140 | ) | ||||||||||||||||||
Total | $ | (49 | ) | $ | 1,347 | $ | (1,312 | ) | $ | (10 | ) | $ | 436 | $ | (159 | ) | $ | 272 | $ | — | $ | (238 | ) | $ | 287 |
Segment Information | Agri-culture | Perf. Materials & Coatings | Ind. Interm. & Infrast. | Pack. & Spec. Plastics | Elect. & Imaging | Nutrition & Biosciences | Transp. & Adv. Polymers | Safety & Const. | Corp. | Total | ||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||
At Sep 30, 2017 | ||||||||||||||||||||||||||||||
Total assets | $ | 51,120 | $ | 17,303 | $ | 11,968 | $ | 26,417 | $ | 14,447 | $ | 21,742 | $ | 16,840 | $ | 16,292 | $ | 22,398 | $ | 198,527 | ||||||||||
At Dec 31, 2016 | ||||||||||||||||||||||||||||||
Total assets 1 | $ | 6,960 | $ | 16,871 | $ | 11,649 | $ | 17,837 | $ | 6,932 | $ | 1,246 | $ | 1,807 | $ | 2,833 | $ | 13,376 | $ | 79,511 |
Selected Financial Data | Three Months Ended | Nine Months Ended | ||||||||||
In millions, except per share amounts | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||||||
Net sales | $ | 15,354 | $ | 12,483 | $ | 42,418 | $ | 35,138 | ||||
Cost of sales | $ | 12,170 | $ | 9,840 | $ | 33,130 | $ | 27,066 | ||||
Percent of net sales | 79.3 | % | 78.8 | % | 78.1 | % | 77.0 | % | ||||
Research and development expenses | $ | 522 | $ | 399 | $ | 1,343 | $ | 1,159 | ||||
Percent of net sales | 3.4 | % | 3.2 | % | 3.2 | % | 3.3 | % | ||||
Selling, general and administrative expenses | $ | 990 | $ | 738 | $ | 2,468 | $ | 2,166 | ||||
Percent of net sales | 6.4 | % | 5.9 | % | 5.8 | % | 6.2 | % | ||||
Effective tax rate | 50.8 | % | 24.9 | % | 30.5 | % | 6.3 | % | ||||
Net income available for common stockholders | $ | 514 | $ | 719 | $ | 2,723 | $ | 4,011 | ||||
Earnings per common share – basic | $ | 0.32 | $ | 0.64 | $ | 2.04 | $ | 3.60 | ||||
Earnings per common share – diluted | $ | 0.32 | $ | 0.63 | $ | 2.01 | $ | 3.48 |
Summary of Sales Results | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
In millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Net sales | $ | 4,271 | $ | 3,629 | $ | 12,382 | $ | 10,588 | ||||||
Summary of Sales Results | Three Months Ended | Nine Months Ended | ||||||||||||||
In millions | Sep 30, 2017 | Sep 30, 2016 | Percent change | Sep 30, 2017 | Sep 30, 2016 | Percent change | ||||||||||
Net sales | $ | 15,354 | $ | 12,483 | 23 | % | $ | 42,418 | $ | 35,138 | 21 | % | ||||
Pro forma net sales | $ | 18,285 | $ | 16,991 | 8 | % | $ | 59,469 | $ | 53,160 | 12 | % |
Sales Variances by Segment and Geographic Region | ||||||||||||||||||||
Three Months Ended Sep 30, 2017 | Nine Months Ended Sep 30, 2017 | |||||||||||||||||||
Percentage change from prior year | Local Price & Product Mix | Currency | Volume | Portfolio & Other | Total | Local Price & Product Mix | Currency | Volume | Portfolio & Other | Total | ||||||||||
Agriculture | (4 | )% | 1 | % | (3 | )% | 30 | % | 24 | % | (2 | )% | — | % | — | % | 8 | % | 6 | % |
Performance Materials & Coatings | 6 | 1 | 1 | — | 8 | 7 | — | 2 | 38 | 47 | ||||||||||
Industrial Intermediates & Infrastructure | 12 | 1 | 3 | — | 16 | 9 | — | 4 | — | 13 | ||||||||||
Packaging & Specialty Plastics | 2 | 1 | 6 | 3 | 12 | 8 | — | 4 | 1 | 13 | ||||||||||
Electronics & Imaging | — | — | 12 | 17 | 29 | (1 | ) | — | 11 | 21 | 31 | |||||||||
Nutrition & Biosciences | — | 1 | 9 | 168 | 178 | (2 | ) | — | 11 | 56 | 65 | |||||||||
Transportation & Advanced Polymers | (1 | ) | 1 | 4 | 129 | 133 | — | — | 5 | 90 | 95 | |||||||||
Safety & Construction | 1 | — | 5 | 59 | 65 | — | (1 | ) | 3 | 20 | 22 | |||||||||
Total | 4 | % | 1 | % | 5 | % | 13 | % | 23 | % | 6 | % | — | % | 4 | % | 11 | % | 21 | % |
U.S. & Canada | 2 | % | — | % | 5 | % | 11 | % | 18 | % | 6 | % | — | % | 4 | % | 9 | % | 19 | % |
EMEA | 9 | 4 | 4 | 12 | 29 | 10 | (1 | ) | 4 | 9 | 22 | |||||||||
Asia Pacific | 3 | — | 10 | 17 | 30 | 3 | — | 8 | 18 | 29 | ||||||||||
Latin America | (1 | ) | — | (3 | ) | 17 | 13 | 1 | — | — | 9 | 10 | ||||||||
Total | 4 | % | 1 | % | 5 | % | 13 | % | 23 | % | 6 | % | — | % | 4 | % | 11 | % | 21 | % |
Sales Variances by Segment and Geographic Region | ||||||||||||||||||||||||||||||||
Percentage change from prior year | Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||
Local Price & Product Mix | Currency | Volume | Portfolio & Other | Total | Local Price & Product Mix | Currency | Volume | Portfolio & Other | Total | |||||||||||||||||||||||
Electronics & Industrial | — | % | 1 | % | 9 | % | 11 | % | 21 | % | — | % | 2 | % | 13 | % | 4 | % | 19 | % | ||||||||||||
Water & Protection | 2 | 1 | 9 | — | 12 | 1 | 2 | 7 | — | 10 | ||||||||||||||||||||||
Mobility & Materials | 16 | 2 | 12 | — | 30 | 9 | 3 | 19 | — | 31 | ||||||||||||||||||||||
Corporate | 3 | 1 | 9 | (49) | (36) | 3 | 2 | 2 | (32) | (25) | ||||||||||||||||||||||
Total | 6 | % | 1 | % | 10 | % | 1 | % | 18 | % | 3 | % | 2 | % | 12 | % | — | % | 17 | % | ||||||||||||
U.S. & Canada | 5 | % | — | % | 8 | % | — | % | 13 | % | 2 | % | — | % | 8 | % | (3) | % | 7 | % | ||||||||||||
EMEA 1 | 5 | 2 | 18 | 3 | 28 | — | 6 | 14 | 1 | 21 | ||||||||||||||||||||||
Asia Pacific | 6 | 2 | 8 | 1 | 17 | 4 | 2 | 14 | 1 | 21 | ||||||||||||||||||||||
Latin America | 3 | 2 | 6 | 2 | 13 | 3 | (1) | 16 | 1 | 19 | ||||||||||||||||||||||
Total | 6 | % | 1 | % | 10 | % | 1 | % | 18 | % | 3 | % | 2 | % | 12 | % | — | % | 17 | % |
Sales Variances by Segment and Geographic Region - Pro Forma Basis | ||||||||||||||||||||
Three Months Ended Sep 30, 2017 | Nine Months Ended Sep 30, 2017 | |||||||||||||||||||
Percentage change from prior year | Local Price & Product Mix | Currency | Volume | Portfolio & Other 1 | Total | Local Price & Product Mix | Currency | Volume | Portfolio & Other 2 | Total | ||||||||||
Agriculture | (4 | )% | 2 | % | (5 | )% | 3 | % | (4 | )% | — | % | — | % | 1 | % | — | % | 1 | % |
Performance Materials & Coatings | 6 | 1 | 1 | — | 8 | 7 | — | 2 | 38 | 47 | ||||||||||
Industrial Intermediates & Infrastructure | 12 | 1 | 3 | — | 16 | 9 | — | 4 | — | 13 | ||||||||||
Packaging & Specialty Plastics | 1 | 1 | 6 | — | 8 | 7 | — | 4 | — | 11 | ||||||||||
Electronics & Imaging | (2 | ) | — | 13 | (6 | ) | 5 | (2 | ) | — | 13 | 5 | 16 | |||||||
Nutrition & Biosciences | — | 1 | — | (1 | ) | — | — | — | 3 | (1 | ) | 2 | ||||||||
Transportation & Advanced Polymers | 3 | 1 | 5 | — | 9 | 1 | — | 8 | 7 | 16 | ||||||||||
Safety & Construction | — | — | 6 | — | 6 | (2 | ) | — | 5 | — | 3 | |||||||||
Total | 3 | % | 1 | % | 4 | % | — | % | 8 | % | 4 | % | — | % | 4 | % | 4 | % | 12 | % |
U.S. & Canada | 1 | % | — | % | 3 | % | — | % | 4 | % | 3 | % | — | % | 3 | % | 3 | % | 9 | % |
EMEA | 7 | 4 | 5 | — | 16 | 8 | (1 | ) | 4 | 3 | 14 | |||||||||
Asia Pacific | 2 | — | 10 | (2 | ) | 10 | 2 | — | 9 | 7 | 18 | |||||||||
Latin America | (2 | ) | 1 | (4 | ) | 3 | (2 | ) | 1 | 1 | (1 | ) | 3 | 4 | ||||||
Total | 3 | % | 1 | % | 4 | % | — | % | 8 | % | 4 | % | — | % | 4 | % | 4 | % | 12 | % |
Unaudited Pro Forma Combined Statements of Income | Three Months Ended | Nine Months Ended | ||||||||||
In millions, except per share amounts | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||||||
Net sales | $ | 18,285 | $ | 16,991 | $ | 59,469 | $ | 53,160 | ||||
Cost of sales | 14,246 | 12,940 | 43,676 | 38,308 | ||||||||
Research and development expenses | 796 | 770 | 2,390 | 2,299 | ||||||||
Selling, general and administrative expenses | 1,583 | 1,586 | 5,223 | 5,153 | ||||||||
Amortization of intangibles | 423 | 429 | 1,286 | 1,201 | ||||||||
Restructuring and asset related charges - net | 180 | 172 | 479 | 614 | ||||||||
Integration and separation costs | 459 | 160 | 997 | 253 | ||||||||
Equity in earnings of nonconsolidated affiliates | 161 | 86 | 442 | 233 | ||||||||
Sundry income (expense) - net | 226 | (37 | ) | 226 | 1,621 | |||||||
Interest expense and amortization of debt discount | 334 | 283 | 902 | 817 | ||||||||
Income from continuing operations before income taxes | 651 | 700 | 5,184 | 6,369 | ||||||||
Provision for income taxes on continuing operations | 392 | 101 | 1,113 | 611 | ||||||||
Income from continuing operations, net of tax | 259 | 599 | 4,071 | 5,758 | ||||||||
Net income attributable to noncontrolling interests | 27 | 20 | 112 | 75 | ||||||||
Net income attributable to DowDuPont Inc. | 232 | 579 | 3,959 | 5,683 | ||||||||
Preferred stock dividends | — | 85 | — | 255 | ||||||||
Net income available for DowDuPont Inc. common stockholders | $ | 232 | $ | 494 | $ | 3,959 | $ | 5,428 | ||||
Per common share data: | ||||||||||||
Earnings per common share from continuing operations - basic | $ | 0.10 | $ | 0.22 | $ | 1.70 | $ | 2.43 | ||||
Earnings per common share from continuing operations - diluted | $ | 0.10 | $ | 0.22 | $ | 1.68 | $ | 2.41 | ||||
Weighted-average common shares outstanding - basic | 2,328.0 | 2,225.6 | 2,322.9 | 2,222.0 | ||||||||
Weighted-average common shares outstanding - diluted | 2,349.7 | 2,247.1 | 2,346.2 | 2,242.4 |
Unaudited Pro Forma Combined Statement of Income | Three Months Ended Sep 30, 2017 | |||||||||||||||||
Adjustments | ||||||||||||||||||
In millions, except per share amounts | DWDP 1 | Historical DuPont 2 | Reclass 3 | Divestitures 4 | Pro Forma 5 | Pro Forma | ||||||||||||
Net sales | $ | 15,354 | $ | 3,182 | $ | 11 | $ | (225 | ) | $ | (37 | ) | $ | 18,285 | ||||
Cost of sales | 12,170 | 2,054 | 115 | (106 | ) | 13 | 14,246 | |||||||||||
Other operating charges | — | 141 | (141 | ) | — | — | — | |||||||||||
Research and development expenses | 522 | 302 | (7 | ) | (26 | ) | 5 | 796 | ||||||||||
Selling, general and administrative expenses | 990 | 844 | (217 | ) | (41 | ) | 7 | 1,583 | ||||||||||
Other (loss) income, net | — | (112 | ) | 112 | — | — | — | |||||||||||
Amortization of intangibles | 244 | — | 31 | — | 148 | 423 | ||||||||||||
Restructuring and asset related charges - net | 179 | 11 | — | — | (10 | ) | 180 | |||||||||||
Integration and separation costs | 354 | — | 219 | (9 | ) | (105 | ) | 459 | ||||||||||
Equity in earnings of nonconsolidated affiliates | 152 | — | 13 | — | (4 | ) | 161 | |||||||||||
Sundry income (expense) - net | 361 | — | (134 | ) | (1 | ) | — | 226 | ||||||||||
Interest expense and amortization of debt discount | 283 | 71 | — | — | (20 | ) | 334 | |||||||||||
Income (loss) from continuing operations before income taxes | 1,125 | (353 | ) | 2 | (44 | ) | (79 | ) | 651 | |||||||||
Provision (credit) for income taxes on continuing operations | 571 | (124 | ) | 2 | (10 | ) | (47 | ) | 392 | |||||||||
Income (loss) from continuing operations, net of tax | 554 | (229 | ) | — | (34 | ) | (32 | ) | 259 | |||||||||
Net income attributable to noncontrolling interests | 20 | 5 | — | — | 2 | 27 | ||||||||||||
Net income (loss) attributable to DowDuPont Inc. | 534 | (234 | ) | — | (34 | ) | (34 | ) | 232 | |||||||||
Preferred stock dividends | — | 2 | — | — | (2 | ) | — | |||||||||||
Net income (loss) available for DowDuPont Inc. common stockholders | $ | 534 | $ | (236 | ) | $ | — | $ | (34 | ) | $ | (32 | ) | $ | 232 | |||
Per common share data: | ||||||||||||||||||
Earnings per common share from continuing operations - basic | $ | 0.10 | ||||||||||||||||
Earnings per common share from continuing operations - diluted | $ | 0.10 | ||||||||||||||||
Weighted-average common shares outstanding - basic | 2,328.0 | |||||||||||||||||
Weighted-average common shares outstanding - diluted | 2,349.7 |
Unaudited Pro Forma Combined Statement of Income | Three Months Ended Sep 30, 2016 | |||||||||||||||||
Adjustments | ||||||||||||||||||
In millions, except per share amounts | Historical Dow 1 | Historical DuPont 2 | Reclass 3 | Divestitures 4 | Pro Forma 5 | Pro Forma | ||||||||||||
Net sales | $ | 12,483 | $ | 4,917 | $ | 27 | $ | (389 | ) | $ | (47 | ) | $ | 16,991 | ||||
Cost of sales | 9,841 | 3,090 | 141 | (166 | ) | 34 | 12,940 | |||||||||||
Other operating charges | — | 176 | (176 | ) | — | — | — | |||||||||||
Research and development expenses | 399 | 410 | (10 | ) | (36 | ) | 7 | 770 | ||||||||||
Selling, general and administrative expenses | 864 | 1,016 | (249 | ) | (56 | ) | 11 | 1,586 | ||||||||||
Other (loss) income, net | — | (16 | ) | 16 | — | — | — | |||||||||||
Amortization of intangibles | 162 | — | 45 | — | 222 | 429 | ||||||||||||
Restructuring and asset related charges - net | — | 172 | — | — | — | 172 | ||||||||||||
Integration and separation costs | — | — | 249 | — | (89 | ) | 160 | |||||||||||
Equity in earnings of nonconsolidated affiliates | 70 | — | 22 | — | (6 | ) | 86 | |||||||||||
Sundry income (expense) - net | (4 | ) | — | (32 | ) | (1 | ) | — | (37 | ) | ||||||||
Interest income | 26 | — | (26 | ) | — | — | — | |||||||||||
Interest expense and amortization of debt discount | 220 | 93 | — | — | (30 | ) | 283 | |||||||||||
Income (loss) from continuing operations before income taxes | 1,089 | (56 | ) | 7 | (132 | ) | (208 | ) | 700 | |||||||||
Provision (credit) for income taxes on continuing operations | 271 | (69 | ) | 7 | (30 | ) | (78 | ) | 101 | |||||||||
Income from continuing operations, net of tax | 818 | 13 | — | (102 | ) | (130 | ) | 599 | ||||||||||
Net income attributable to noncontrolling interests | 14 | 4 | — | — | 2 | 20 | ||||||||||||
Net income attributable to DowDuPont Inc. | 804 | 9 | — | (102 | ) | (132 | ) | 579 | ||||||||||
Preferred stock dividends | 85 | 2 | — | — | (2 | ) | 85 | |||||||||||
Net income available for DowDuPont Inc. common stockholders | $ | 719 | $ | 7 | $ | — | $ | (102 | ) | $ | (130 | ) | $ | 494 | ||||
Per common share data: | ||||||||||||||||||
Earnings per common share from continuing operations - basic | $ | 0.22 | ||||||||||||||||
Earnings per common share from continuing operations - diluted | $ | 0.22 | ||||||||||||||||
Weighted-average common shares outstanding - basic | 2,225.6 | |||||||||||||||||
Weighted-average common shares outstanding - diluted | 2,247.1 |
Unaudited Pro Forma Combined Statement of Income | Nine Months Ended Sep 30, 2017 | |||||||||||||||||
Adjustments | ||||||||||||||||||
In millions, except per share amounts | DWDP 1 | Historical DuPont 2 | Reclass 3 | Divestitures 4 | Pro Forma 5 | Pro Forma | ||||||||||||
Net sales | $ | 42,418 | $ | 18,349 | $ | 84 | $ | (1,219 | ) | $ | (163 | ) | $ | 59,469 | ||||
Cost of sales | 33,130 | 10,617 | 387 | (523 | ) | 65 | 43,676 | |||||||||||
Other operating charges | — | 521 | (521 | ) | — | — | — | |||||||||||
Research and development expenses | 1,343 | 1,159 | (27 | ) | (104 | ) | 19 | 2,390 | ||||||||||
Selling, general and administrative expenses | 2,468 | 3,452 | (583 | ) | (143 | ) | 29 | 5,223 | ||||||||||
Other (loss) income, net | — | 173 | (173 | ) | — | — | — | |||||||||||
Amortization of intangibles | 556 | — | 139 | — | 591 | 1,286 | ||||||||||||
Restructuring and asset related charges - net | 166 | 323 | — | — | (10 | ) | 479 | |||||||||||
Integration and separation costs | 599 | — | 605 | (24 | ) | (183 | ) | 997 | ||||||||||
Equity in earnings of nonconsolidated affiliates | 402 | — | 55 | — | (15 | ) | 442 | |||||||||||
Sundry income (expense) - net | 237 | — | 1 | (12 | ) | — | 226 | |||||||||||
Interest expense and amortization of debt discount | 728 | 254 | — | — | (80 | ) | 902 | |||||||||||
Income from continuing operations before income taxes | 4,067 | 2,196 | (33 | ) | (437 | ) | (609 | ) | 5,184 | |||||||||
Provision for income taxes on continuing operations | 1,239 | 228 | (33 | ) | (88 | ) | (233 | ) | 1,113 | |||||||||
Income from continuing operations, net of tax | 2,828 | 1,968 | — | (349 | ) | (376 | ) | 4,071 | ||||||||||
Net income attributable to noncontrolling interests | 85 | 20 | — | — | 7 | 112 | ||||||||||||
Net income attributable to DowDuPont Inc. | 2,743 | 1,948 | — | (349 | ) | (383 | ) | 3,959 | ||||||||||
Preferred stock dividends | — | 7 | — | — | (7 | ) | — | |||||||||||
Net income available for DowDuPont Inc. common stockholders | $ | 2,743 | $ | 1,941 | $ | — | $ | (349 | ) | $ | (376 | ) | $ | 3,959 | ||||
Per common share data: | ||||||||||||||||||
Earnings per common share from continuing operations - basic | $ | 1.70 | ||||||||||||||||
Earnings per common share from continuing operations - diluted | $ | 1.68 | ||||||||||||||||
Weighted-average common shares outstanding - basic | 2,322.9 | |||||||||||||||||
Weighted-average common shares outstanding - diluted | 2,346.2 |
Unaudited Pro Forma Combined Statement of Income | Nine Months Ended Sep 30, 2016 | |||||||||||||||||
Adjustments | ||||||||||||||||||
In millions, except per share amounts | Historical Dow 1 | Historical DuPont 2 | Reclass 3 | Divestitures 4 | Pro Forma 5 | Pro Forma | ||||||||||||
Net sales | $ | 35,138 | $ | 19,383 | $ | 108 | $ | (1,305 | ) | $ | (164 | ) | $ | 53,160 | ||||
Cost of sales | 27,067 | 11,322 | 414 | (557 | ) | 62 | 38,308 | |||||||||||
Other operating charges | — | 504 | (504 | ) | — | — | — | |||||||||||
Research and development expenses | 1,159 | 1,260 | (30 | ) | (111 | ) | 21 | 2,299 | ||||||||||
Selling, general and administrative expenses | 2,393 | 3,355 | (478 | ) | (150 | ) | 33 | 5,153 | ||||||||||
Other (loss) income, net | — | 407 | (407 | ) | — | — | — | |||||||||||
Amortization of intangibles | 387 | — | 148 | — | 666 | 1,201 | ||||||||||||
Restructuring and asset related charges - net | 452 | 159 | — | 3 | — | 614 | ||||||||||||
Integration and separation costs | — | — | 450 | — | (197 | ) | 253 | |||||||||||
Equity in earnings of nonconsolidated affiliates | 191 | — | 60 | — | (18 | ) | 233 | |||||||||||
Sundry income (expense) - net | 1,305 | — | 323 | (7 | ) | — | 1,621 | |||||||||||
Interest income | 64 | — | (64 | ) | — | — | — | |||||||||||
Interest expense and amortization of debt discount | 629 | 278 | — | — | (90 | ) | 817 | |||||||||||
Income from continuing operations before income taxes | 4,611 | 2,912 | 20 | (497 | ) | (677 | ) | 6,369 | ||||||||||
Provision for income taxes on continuing operations | 291 | 643 | 20 | (103 | ) | (240 | ) | 611 | ||||||||||
Income from continuing operations, net of tax | 4,320 | 2,269 | — | (394 | ) | (437 | ) | 5,758 | ||||||||||
Net income attributable to noncontrolling interests | 54 | 14 | — | — | 7 | 75 | ||||||||||||
Net income attributable to DowDuPont Inc. | 4,266 | 2,255 | — | (394 | ) | (444 | ) | 5,683 | ||||||||||
Preferred stock dividends | 255 | 7 | — | — | (7 | ) | 255 | |||||||||||
Net income available for DowDuPont Inc. common stockholders | $ | 4,011 | $ | 2,248 | $ | — | $ | (394 | ) | $ | (437 | ) | $ | 5,428 | ||||
Per common share data: | ||||||||||||||||||
Earnings per common share from continuing operations - basic | $ | 2.43 | ||||||||||||||||
Earnings per common share from continuing operations - diluted | $ | 2.41 | ||||||||||||||||
Weighted-average common shares outstanding - basic | 2,222.0 | |||||||||||||||||
Weighted-average common shares outstanding - diluted | 2,242.4 |
Summary of Pro Forma Adjustments | Three Months Ended | Nine Months Ended | ||||||||||
In millions (Unaudited) | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||||||
Net sales | ||||||||||||
Intercompany transactions 1 | $ | (37 | ) | $ | (47 | ) | $ | (163 | ) | $ | (164 | ) |
Cost of sales | ||||||||||||
Intercompany transactions 1 | $ | (37 | ) | $ | (47 | ) | $ | (163 | ) | $ | (164 | ) |
Policy harmonization 2 | (4 | ) | — | 11 | (17 | ) | ||||||
Depreciation expense 3 | 54 | 81 | 217 | 243 | ||||||||
Total cost of sales | $ | 13 | $ | 34 | $ | 65 | $ | 62 | ||||
Research and development expenses: | ||||||||||||
Depreciation expense 3 | $ | 5 | $ | 7 | $ | 19 | $ | 21 | ||||
Selling, general and administrative expenses | ||||||||||||
Depreciation expense 3 | $ | 7 | $ | 11 | $ | 29 | $ | 33 | ||||
Amortization of intangibles | ||||||||||||
Amortization expense 4 | $ | 148 | $ | 222 | $ | 591 | $ | 666 | ||||
Restructuring and asset related charges - net | ||||||||||||
Transaction costs 5 | $ | (10 | ) | $ | — | $ | (10 | ) | $ | — | ||
Integration and separation costs | ||||||||||||
Transaction costs 5 | $ | (105 | ) | $ | (89 | ) | $ | (183 | ) | $ | (197 | ) |
Equity in earnings of nonconsolidated affiliates | ||||||||||||
Fair value of nonconsolidated affiliates 6 | $ | (4 | ) | $ | (6 | ) | $ | (15 | ) | $ | (18 | ) |
Interest expense and amortization of debt discount | ||||||||||||
Amortization of debt discount 7 | $ | (20 | ) | $ | (30 | ) | $ | (80 | ) | $ | (90 | ) |
Total pro forma adjustments to income from continuing operations before income taxes | $ | (79 | ) | $ | (208 | ) | $ | (609 | ) | $ | (677 | ) |
Provision for income taxes on continuing operations 8 | ||||||||||||
Policy harmonization 2 | $ | 2 | $ | — | $ | (4 | ) | $ | 6 | |||
Depreciation expense 3 | (23 | ) | (33 | ) | (91 | ) | (99 | ) | ||||
Amortization expense 4 | (46 | ) | (70 | ) | (184 | ) | (210 | ) | ||||
Transaction costs 5 | 14 | 16 | 22 | 36 | ||||||||
Fair value of nonconsolidated affiliates 6 | (1 | ) | (2 | ) | (5 | ) | (6 | ) | ||||
Amortization of debt discount 7 | 7 | 11 | 29 | 33 | ||||||||
Total provision for income taxes on continuing operations | $ | (47 | ) | $ | (78 | ) | $ | (233 | ) | $ | (240 | ) |
Total pro forma adjustments to income from continuing operations, net of tax | $ | (32 | ) | $ | (130 | ) | $ | (376 | ) | $ | (437 | ) |
Net income attributable to noncontrolling interests | ||||||||||||
Reclass historical dividends 9 | $ | 2 | $ | 2 | $ | 7 | $ | 7 | ||||
Net income from continuing operations attributable to DowDuPont Inc. | $ | (34 | ) | $ | (132 | ) | $ | (383 | ) | $ | (444 | ) |
Preferred stock dividends | ||||||||||||
Reclass historical dividends 9 | $ | (2 | ) | $ | (2 | ) | $ | (7 | ) | $ | (7 | ) |
Net income from continuing operations available for DowDuPont Inc. common stockholders | $ | (32 | ) | $ | (130 | ) | $ | (376 | ) | $ | (437 | ) |
Agriculture | Three Months Ended | Nine Months Ended | ||||||||||
In millions | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||||||
Net sales | $ | 1,532 | $ | 1,233 | $ | 4,729 | $ | 4,456 | ||||
Pro forma net sales | $ | 1,911 | $ | 1,998 | $ | 11,555 | $ | 11,396 | ||||
Pro forma Operating EBITDA | $ | (239 | ) | $ | (172 | ) | $ | 2,387 | $ | 2,222 | ||
Equity earnings (losses) | $ | (5 | ) | $ | 5 | $ | (1 | ) | $ | 5 |
Agriculture | Three Months Ended | Nine Months Ended | ||
Percentage change from prior year | Sep 30, 2017 | Sep 30, 2017 | ||
Change in Net Sales from Prior Period due to: | ||||
Local price & product mix | (4 | )% | (2 | )% |
Currency | 1 | — | ||
Volume | (3 | ) | — | |
Portfolio & other | 30 | 8 | ||
Total | 24 | % | 6 | % |
Change in Pro Forma Net Sales from Prior Period due to: | ||||
Local price & product mix | (4 | )% | — | % |
Currency | 2 | — | ||
Volume | (5 | ) | 1 | |
Portfolio & other | 3 | — | ||
Total | (4 | )% | 1 | % |
Performance Materials & Coatings | Three Months Ended | Nine Months Ended | ||||||||||
In millions | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||||||
Net sales | $ | 2,228 | $ | 2,058 | $ | 6,580 | $ | 4,480 | ||||
Pro forma net sales | $ | 2,219 | $ | 2,046 | $ | 6,537 | $ | 4,440 | ||||
Pro forma Operating EBITDA | $ | 487 | $ | 345 | $ | 1,508 | $ | 836 | ||||
Equity earnings | $ | 39 | $ | 31 | $ | 171 | $ | 126 |
Performance Materials & Coatings | Three Months Ended | Nine Months Ended | ||
Percentage change from prior year | Sep 30, 2017 | Sep 30, 2017 | ||
Change in Net Sales from Prior Period due to: | ||||
Local price & product mix | 6 | % | 7 | % |
Currency | 1 | — | ||
Volume | 1 | 2 | ||
Portfolio & other | — | 38 | ||
Total | 8 | % | 47 | % |
Change in Pro Forma Net Sales from Prior Period due to: | ||||
Local price & product mix | 6 | % | 7 | % |
Currency | 1 | — | ||
Volume | 1 | 2 | ||
Portfolio & other | — | 38 | ||
Total | 8 | % | 47 | % |
Industrial Intermediates & Infrastructure | Three Months Ended | Nine Months Ended | ||||||||||
In millions | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||||||
Net sales | $ | 3,228 | $ | 2,773 | $ | 9,094 | $ | 8,024 | ||||
Pro forma net sales | $ | 3,226 | $ | 2,770 | $ | 9,086 | $ | 8,015 | ||||
Pro forma Operating EBITDA | $ | 676 | $ | 401 | $ | 1,605 | $ | 1,183 | ||||
Equity earnings (losses) | $ | 41 | $ | (7 | ) | $ | 101 | $ | (49 | ) |
Industrial Intermediates & Infrastructure | Three Months Ended | Nine Months Ended | ||
Percentage change from prior year | Sep 30, 2017 | Sep 30, 2017 | ||
Change in Net Sales from Prior Period due to: | ||||
Local price & product mix | 12 | % | 9 | % |
Currency | 1 | — | ||
Volume | 3 | 4 | ||
Portfolio & other | — | — | ||
Total | 16 | % | 13 | % |
Change in Pro Forma Net Sales from Prior Period due to: | ||||
Local price & product mix | 12 | % | 9 | % |
Currency | 1 | — | ||
Volume | 3 | 4 | ||
Portfolio & other | — | — | ||
Total | 16 | % | 13 | % |
Packaging & Specialty Plastics | Three Months Ended | Nine Months Ended | ||||||||||
In millions | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||||||
Net sales | $ | 5,260 | $ | 4,702 | $ | 15,364 | $ | 13,561 | ||||
Pro forma net sales | $ | 5,490 | $ | 5,070 | $ | 16,300 | $ | 14,636 | ||||
Pro forma Operating EBITDA | $ | 1,147 | $ | 1,386 | $ | 3,424 | $ | 3,856 | ||||
Equity earnings | $ | 64 | $ | 39 | $ | 130 | $ | 83 |
Packaging & Specialty Plastics | Three Months Ended | Nine Months Ended | ||
Percentage change from prior year | Sep 30, 2017 | Sep 30, 2017 | ||
Change in Net Sales from Prior Period due to: | ||||
Local price & product mix | 2 | % | 8 | % |
Currency | 1 | — | ||
Volume | 6 | 4 | ||
Portfolio & other | 3 | 1 | ||
Total | 12 | % | 13 | % |
Change in Pro Forma Net Sales from Prior Period due to: | ||||
Local price & product mix | 1 | % | 7 | % |
Currency | 1 | — | ||
Volume | 6 | 4 | ||
Portfolio & other | — | — | ||
Total | 8 | % | 11 | % |
Electronics & Imaging | Three Months Ended | Nine Months Ended | ||||||||||
In millions | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||||||
Net sales | $ | 832 | $ | 646 | $ | 2,164 | $ | 1,647 | ||||
Pro forma net sales | $ | 1,198 | $ | 1,138 | $ | 3,583 | $ | 3,084 | ||||
Pro forma Operating EBITDA | $ | 382 | $ | 341 | $ | 1,119 | $ | 842 | ||||
Equity earnings | $ | — | $ | — | $ | — | $ | 24 |
Electronics & Imaging | Three Months Ended | Nine Months Ended | ||
Percentage change from prior year | Sep 30, 2017 | Sep 30, 2017 | ||
Change in Net Sales from Prior Period due to: | ||||
Local price & product mix | — | % | (1 | )% |
Currency | — | — | ||
Volume | 12 | 11 | ||
Portfolio & other | 17 | 21 | ||
Total | 29 | % | 31 | % |
Change in Pro Forma Net Sales from Prior Period due to: | ||||
Local price & product mix | (2 | )% | (2 | )% |
Currency | — | — | ||
Volume | 13 | 13 | ||
Portfolio & other | (6 | ) | 5 | |
Total | 5 | % | 16 | % |
Nutrition & Biosciences | Three Months Ended | Nine Months Ended | ||||||||||
In millions | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||||||
Net sales | $ | 689 | $ | 248 | $ | 1,223 | $ | 741 | ||||
Pro forma net sales | $ | 1,473 | $ | 1,469 | $ | 4,391 | $ | 4,313 | ||||
Pro forma Operating EBITDA | $ | 315 | $ | 321 | $ | 950 | $ | 918 | ||||
Equity earnings | $ | 3 | $ | 3 | $ | 9 | $ | 8 |
Nutrition & Biosciences | Three Months Ended | Nine Months Ended | ||
Percentage change from prior year | Sep 30, 2017 | Sep 30, 2017 | ||
Change in Net Sales from Prior Period due to: | ||||
Local price & product mix | — | % | (2 | )% |
Currency | 1 | — | ||
Volume | 9 | 11 | ||
Portfolio & other | 168 | 56 | ||
Total | 178 | % | 65 | % |
Change in Pro Forma Net Sales from Prior Period due to: | ||||
Local price & product mix | — | % | — | % |
Currency | 1 | — | ||
Volume | — | 3 | ||
Portfolio & other | (1 | ) | (1 | ) |
Total | — | % | 2 | % |
Electronics & Industrial | Three Months Ended | Nine Months Ended | ||||||||||||
In millions | September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||
Net sales | $ | 1,467 | $ | 1,213 | $ | 4,087 | $ | 3,439 | ||||||
Operating EBITDA | $ | 475 | $ | 421 | $ | 1,335 | $ | 1,084 | ||||||
Equity earnings | $ | 13 | $ | 8 | $ | 32 | $ | 27 |
Electronics & Industrial | Three Months Ended | Nine Months Ended | ||||||
Percentage change from prior year | September 30, 2021 | September 30, 2021 | ||||||
Change in Net Sales from Prior Period due to: | ||||||||
Local price & product mix | — | % | — | % | ||||
Currency | 1 | 2 | ||||||
Volume | 9 | 13 | ||||||
Portfolio & other | 11 | 4 | ||||||
Total | 21 | % | 19 | % | ||||
Transportation & Advanced Polymers | Three Months Ended | Nine Months Ended | ||||||||||
In millions | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||||||
Net sales | $ | 636 | $ | 273 | $ | 1,224 | $ | 629 | ||||
Pro forma net sales | $ | 1,299 | $ | 1,187 | $ | 3,834 | $ | 3,316 | ||||
Pro forma Operating EBITDA | $ | 325 | $ | 303 | $ | 954 | $ | 769 | ||||
Equity earnings | $ | 1 | $ | — | $ | 1 | $ | 9 |
Transportation & Advanced Polymers | Three Months Ended | Nine Months Ended | ||
Percentage change from prior year | Sep 30, 2017 | Sep 30, 2017 | ||
Change in Net Sales from Prior Period due to: | ||||
Local price & product mix | (1 | )% | — | % |
Currency | 1 | — | ||
Volume | 4 | 5 | ||
Portfolio & other | 129 | 90 | ||
Total | 133 | % | 95 | % |
Change in Pro Forma Net Sales from Prior Period due to: | ||||
Local price & product mix | 3 | % | 1 | % |
Currency | 1 | — | ||
Volume | 5 | 8 | ||
Portfolio & other | — | 7 | ||
Total | 9 | % | 16 | % |
Water & Protection | Three Months Ended | Nine Months Ended | ||||||||||||
In millions | September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||
Net sales | $ | 1,397 | $ | 1,249 | $ | 4,137 | $ | 3,769 | ||||||
Operating EBITDA | $ | 353 | $ | 314 | $ | 1,060 | $ | 1,010 | ||||||
Equity earnings | $ | 7 | $ | 7 | $ | 27 | $ | 19 |
Water & Protection | Three Months Ended | Nine Months Ended | ||||||
Percentage change from prior year | September 30, 2021 | September 30, 2021 | ||||||
Change in Net Sales from Prior Period due to: | ||||||||
Local price & product mix | 2 | % | 1 | % | ||||
Currency | 1 | 2 | ||||||
Volume | 9 | 7 | ||||||
Portfolio & other | — | — | ||||||
Total | 12 | % | 10 | % |
Safety & Construction | Three Months Ended | Nine Months Ended | ||||||||||
In millions | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||||||
Net sales | $ | 792 | $ | 479 | $ | 1,716 | $ | 1,399 | ||||
Pro forma net sales | $ | 1,310 | $ | 1,238 | $ | 3,852 | $ | 3,748 | ||||
Pro forma Operating EBITDA | $ | 351 | $ | 282 | $ | 905 | $ | 903 | ||||
Equity earnings (losses) | $ | (1 | ) | $ | — | $ | (1 | ) | $ | 1 |
Safety & Construction | Three Months Ended | Nine Months Ended | ||
Percentage change from prior year | Sep 30, 2017 | Sep 30, 2017 | ||
Change in Net Sales from Prior Period due to: | ||||
Local price & product mix | 1 | % | — | % |
Currency | — | (1 | ) | |
Volume | 5 | 3 | ||
Portfolio & other | 59 | 20 | ||
Total | 65 | % | 22 | % |
Change in Pro Forma Net Sales from Prior Period due to: | ||||
Local price & product mix | — | % | (2 | )% |
Currency | — | — | ||
Volume | 6 | 5 | ||
Portfolio & other | — | — | ||
Total | 6 | % | 3 | % |
Mobility & Materials | Three Months Ended | Nine Months Ended | ||||||||||||
In millions | September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||
Net sales | $ | 1,298 | $ | 996 | $ | 3,783 | $ | 2,877 | ||||||
Operating EBITDA | $ | 280 | $ | 160 | $ | 852 | $ | 352 | ||||||
Equity earnings | $ | 3 | $ | 5 | $ | 11 | $ | 13 |
Mobility & Materials | Three Months Ended | Nine Months Ended | ||||||
Percentage change from prior year | September 30, 2021 | September 30, 2021 | ||||||
Change in Net Sales from Prior Period due to: | ||||||||
Local price & product mix | 16 | % | 9 | % | ||||
Currency | 2 | 3 | ||||||
Volume | 12 | 19 | ||||||
Portfolio & other | — | — | ||||||
Total | 30 | % | 31 | % |
Corporate | Three Months Ended | Nine Months Ended | ||||||||||
In millions | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2017 | Sep 30, 2016 | ||||||||
Net sales | $ | 157 | $ | 71 | $ | 324 | $ | 201 | ||||
Pro forma net sales | $ | 159 | $ | 75 | $ | 331 | $ | 212 | ||||
Pro forma Operating EBITDA | $ | (223 | ) | $ | (185 | ) | $ | (624 | ) | $ | (600 | ) |
Equity earnings (losses) | $ | 10 | $ | (1 | ) | $ | (8 | ) | $ | (16 | ) |
In millions | September 30, 2021 | December 31, 2020 | ||||||
Cash and cash equivalents | $ | 1,670 | $ | 2,544 | ||||
Total debt 1 | $ | 10,630 | $ | 15,612 |
Credit Ratings | Long-Term Rating | Short-Term Rating | Outlook | ||||||||
Standard & Poor’s | BBB+ | A-2 | Stable | ||||||||
Moody’s Investors Service | Baa1 | P-2 | Stable | ||||||||
Fitch Ratings | BBB+ | F-2 | Stable |
Cash Flow Summary | Nine Months Ended | |||||
In millions | Sep 30, 2017 | Sep 30, 2016 | ||||
Cash provided by (used in): | ||||||
Operating activities | $ | 4,469 | $ | 3,719 | ||
Investing activities | 3,134 | (2,498 | ) | |||
Financing activities | (1,279 | ) | (2,792 | ) | ||
Effect of exchange rate changes on cash | 254 | 26 | ||||
Cash reclassified as held for sale | (37 | ) | — | |||
Summary | ||||||
Increase (decrease) in cash and cash equivalents | $ | 6,541 | $ | (1,545 | ) | |
Cash and cash equivalents at beginning of year | 6,607 | 8,577 | ||||
Cash and cash equivalents at end of period | $ | 13,148 | $ | 7,032 |
Cash Flow Summary | Nine Months Ended | |||||||
In millions | September 30, 2021 | September 30, 2020 | ||||||
Cash provided by (used for): | ||||||||
Operating activities | $ | 1,660 | $ | 2,794 | ||||
Investing activities | $ | (2,727) | $ | 35 | ||||
Financing activities | $ | (5,921) | $ | 5,830 | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | $ | (49) | $ | 4 | ||||
Cash, cash equivalents and restricted cash reclassified as discontinued operations | $ | — | $ | 7 | ||||
Net Working Capital 1 | September 30, 2021 | December 31, 2020 | ||||||
In millions (except ratio) | ||||||||
Current assets | $ | 8,497 | $ | 8,349 | ||||
Current liabilities | 4,221 | 3,616 | ||||||
Net working capital | $ | 4,276 | $ | 4,733 | ||||
Current ratio | 2.01:1 | 2.31:1 |
Net Working Capital | Sep 30, 2017 | Dec 31, 2016 | ||||
In millions | ||||||
Current assets | $ | 54,801 | $ | 23,659 | ||
Current liabilities | 27,278 | 12,604 | ||||
Net working capital | $ | 27,523 | $ | 11,055 | ||
Current ratio | 2.01:1 | 1.88:1 |
Reconciliation of "Cash Provided by Operating Activities" to Free Cash Flow | Nine Months Ended | |||||
In millions | Sep 30, 2017 | Sep 30, 2016 | ||||
Cash provided by operating activities | $ | 4,469 | $ | 3,719 | ||
Capital expenditures | (2,301 | ) | (2,877 | ) | ||
Free Cash Flow | $ | 2,168 | $ | 842 |
Total Debt | Sep 30, 2017 | Dec 31, 2016 | ||||||||||
In millions | Dow | DuPont | Total | |||||||||
Notes payable | $ | 584 | $ | 4,592 | $ | 5,176 | $ | 272 | ||||
Long-term debt due within one year | 578 | 1,328 | 1,906 | 635 | ||||||||
Long-term debt | 20,004 | 9,815 | 29,819 | 20,456 | ||||||||
Total debt | $ | 21,166 | $ | 15,735 | $ | 36,901 | $ | 21,363 |
Contractual Obligations | Payments Due In | ||||||||||||||
In millions | 2017 | 2018-2019 | 2020-2021 | 2022 and beyond | Total | ||||||||||
Long-term debt obligations 1 | $ | 80 | $ | 10,475 | $ | 7,902 | $ | 13,093 | $ | 31,550 | |||||
Expected cash requirements for interest 2 | 358 | 2,533 | 1,627 | 8,281 | 12,799 | ||||||||||
Pension and other postretirement benefits | 1,180 | 1,659 | 2,563 | 14,398 | 19,800 | ||||||||||
Operating leases | 153 | 1,026 | 731 | 1,266 | 3,176 | ||||||||||
Purchase obligations 3 | 2,928 | 5,989 | 4,511 | 8,172 | 21,600 | ||||||||||
License agreements | — | 450 | 344 | 390 | 1,184 | ||||||||||
Other noncurrent obligations 4 | 141 | 1,339 | 687 | 3,187 | 5,354 | ||||||||||
Total contractual obligations | $ | 4,840 | $ | 23,471 | $ | 18,365 | $ | 48,787 | $ | 95,463 |
Asbestos-Related Claim Activity | 2017 | 2016 | ||
Claims unresolved at Jan 1 | 16,141 | 18,778 | ||
Claims filed | 5,598 | 5,909 | ||
Claims settled, dismissed or otherwise resolved | (6,560 | ) | (7,052 | ) |
Claims unresolved at Sep 30 | 15,179 | 17,635 | ||
Claimants with claims against both UCC and Amchem | (5,544 | ) | (6,444 | ) |
Individual claimants at Sep 30 | 9,635 | 11,191 |
Total Daily VAR by Exposure Type | Sep 30, 2017 | 2016 | |||||||
In millions | Year-end | Average | |||||||
Commodities | $ | 35 | $ | 24 | $ | 23 | |||
Equity securities | $ | 5 | $ | 17 | $ | 16 | |||
Foreign exchange | $ | 38 | $ | 28 | $ | 9 | |||
Interest rate | $ | 78 | $ | 82 | $ | 90 | |||
Composite | $ | 156 | $ | 151 | $ | 138 |
Foreign Currency Contracts | Fair Value Asset/(Liability) | Fair Value Sensitivity | ||||
In millions | Sep 30, 2017 | Sep 30, 2017 | ||||
Foreign currency contracts | $ | (19 | ) | $ | (981 | ) |
PART II - OTHER INFORMATION |
Issuer Purchases of Equity Securities | Total number of shares purchased as part of the Company's publicly announced share repurchase program | Approximate dollar value of shares that may yet be purchased under the Company's publicly announced share repurchase program (In millions) | ||||||||||||
Period | Total number of shares purchased | Average price paid per share | ||||||||||||
July | 1,600,944 | $ | 78.08 | 1,600,944 | $ | 1,250 | ||||||||
August | 4,137,091 | 75.29 | 4,137,091 | 939 | ||||||||||
September | 858,730 | 73.97 | 858,730 | 875 | ||||||||||
Third Quarter 2021 | 6,596,765 | $ | 75.80 | 6,596,765 | $ | 875 |
Issuer Purchases of Equity Securities | Total number of shares purchased as part of the Company's publicly announced share repurchase program (1) | Approximate dollar value of shares that may yet be purchased under the Company's publicly announced share repurchase program (1) (In Millions) | ||||||||
Period | Total number of shares purchased | Average price paid per share | ||||||||
July 2017 | — | $ | — | — | $ | 1,396 | ||||
August 2017 | — | $ | — | — | $ | 1,396 | ||||
September 2017 | — | $ | — | — | $ | — | ||||
Third quarter 2017 | — | $ | — | — | $ | — |
EXHIBIT NO. | DESCRIPTION | ||||||||||
31.1* | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||||
31.2* | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||||
32.1* | Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||||
32.2* | Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||||
101.INS | XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||||||||
101.SCH | XBRL Taxonomy Extension Schema Document. | ||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | ||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | ||||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | ||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | ||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
Signatures |
By: | /s/ | ||||||||||||
Title: | ||||||||||||||
City: | ||||||||||||||
State: | ||||||||||||||