Commission File Number | Exact Name of Registrant as Specified in its Charter, Principal Office Address and Telephone Number | State of Incorporation or Organization | I.R.S. Employer Identification No. | ||||||||
001-38646 | Dow Inc. | Delaware | 30-1128146 | ||||||||
2211 H.H. Dow Way, Midland, MI 48674 | |||||||||||
(989) 636-1000 | |||||||||||
001-03433 | The Dow Chemical Company | Delaware | 38-1285128 | ||||||||
2211 H.H. Dow Way, Midland, MI 48674 | |||||||||||
(989) 636-1000 |
Registrant | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||
Dow Inc. | Common Stock, par value $0.01 per share | DOW | New York Stock Exchange | ||||||||
The Dow Chemical Company | 0.500% Notes due March 15, 2027 | DOW/27 | New York Stock Exchange | ||||||||
The Dow Chemical Company | 1.125% Notes due March 15, 2032 | DOW/32 | New York Stock Exchange | ||||||||
The Dow Chemical Company | 1.875% Notes due March 15, 2040 | DOW/40 | New York Stock Exchange | ||||||||
The Dow Chemical Company | 4.625% Notes due October 1, 2044 | DOW/44 | New York Stock Exchange |
Dow Inc. | ☑ | Yes | ☐ | No | The Dow Chemical Company | ☑ | Yes | ☐ | No |
Dow Inc. | ☑ | Yes | ☐ | No | The Dow Chemical Company | ☑ | Yes | ☐ | No |
Dow Inc. | Large accelerated filer | ☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ | ||||||||||||||||||||||
The Dow Chemical Company | Large accelerated filer | ☐ | Accelerated filer | ☐ | Non-accelerated filer | ☑ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
Dow Inc. | ☐ | The Dow Chemical Company | ☐ |
Dow Inc. | ☐ | Yes | ☑ | No | The Dow Chemical Company | ☐ | Yes | ☑ | No |
PAGE | ||||||||
Item 1. | ||||||||
Dow Inc. and Subsidiaries: | ||||||||
The Dow Chemical Company and Subsidiaries: | ||||||||
Dow Inc. and Subsidiaries and The Dow Chemical Company and Subsidiaries: | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Dow Inc. and Subsidiaries The Dow Chemical Company and Subsidiaries |
PART I – FINANCIAL INFORMATION |
ITEM 1. FINANCIAL STATEMENTS |
Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
In millions, except per share amounts (Unaudited) | In millions, except per share amounts (Unaudited) | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions, except per share amounts (Unaudited) | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||
Net sales | Net sales | $ | 13,885 | $ | 8,354 | $ | 25,767 | $ | 18,124 | Net sales | $ | 14,837 | $ | 9,712 | $ | 40,604 | $ | 27,836 | ||||||||||
Cost of sales | Cost of sales | 10,740 | 7,610 | 20,802 | 15,840 | Cost of sales | 11,611 | 8,371 | 32,413 | 24,211 | ||||||||||||||||||
Research and development expenses | Research and development expenses | 228 | 182 | 422 | 361 | Research and development expenses | 210 | 193 | 632 | 554 | ||||||||||||||||||
Selling, general and administrative expenses | Selling, general and administrative expenses | 440 | 357 | 806 | 691 | Selling, general and administrative expenses | 403 | 372 | 1,209 | 1,063 | ||||||||||||||||||
Amortization of intangibles | Amortization of intangibles | 100 | 100 | 201 | 200 | Amortization of intangibles | 100 | 100 | 301 | 300 | ||||||||||||||||||
Restructuring and asset related charges - net | Restructuring and asset related charges - net | 22 | 6 | 22 | 102 | Restructuring and asset related charges - net | — | 617 | 22 | 719 | ||||||||||||||||||
Integration and separation costs | Integration and separation costs | 0 | 46 | 0 | 111 | Integration and separation costs | — | 63 | — | 174 | ||||||||||||||||||
Equity in earnings (losses) of nonconsolidated affiliates | Equity in earnings (losses) of nonconsolidated affiliates | 278 | (95) | 502 | (184) | Equity in earnings (losses) of nonconsolidated affiliates | 249 | 60 | 751 | (124) | ||||||||||||||||||
Sundry income (expense) - net | Sundry income (expense) - net | (3) | 53 | 125 | (28) | Sundry income (expense) - net | (350) | 182 | (225) | 154 | ||||||||||||||||||
Interest income | Interest income | 13 | 6 | 21 | 21 | Interest income | 14 | 6 | 35 | 27 | ||||||||||||||||||
Interest expense and amortization of debt discount | Interest expense and amortization of debt discount | 187 | 200 | 383 | 415 | Interest expense and amortization of debt discount | 178 | 202 | 561 | 617 | ||||||||||||||||||
Income (loss) before income taxes | 2,456 | (183) | 3,779 | 213 | ||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 2,248 | 42 | 6,027 | 255 | |||||||||||||||||||||||
Provision for income taxes | Provision for income taxes | 524 | 34 | 841 | 172 | Provision for income taxes | 542 | 43 | 1,383 | 215 | ||||||||||||||||||
Net income (loss) | Net income (loss) | 1,932 | (217) | 2,938 | 41 | Net income (loss) | 1,706 | (1) | 4,644 | 40 | ||||||||||||||||||
Net income attributable to noncontrolling interests | Net income attributable to noncontrolling interests | 31 | 8 | 46 | 27 | Net income attributable to noncontrolling interests | 23 | 24 | 69 | 51 | ||||||||||||||||||
Net income (loss) available for Dow Inc. common stockholders | Net income (loss) available for Dow Inc. common stockholders | $ | 1,901 | $ | (225) | $ | 2,892 | $ | 14 | Net income (loss) available for Dow Inc. common stockholders | $ | 1,683 | $ | (25) | $ | 4,575 | $ | (11) | ||||||||||
Per common share data: | Per common share data: | Per common share data: | ||||||||||||||||||||||||||
Earnings (loss) per common share - basic | Earnings (loss) per common share - basic | $ | 2.53 | $ | (0.31) | $ | 3.86 | $ | 0.01 | Earnings (loss) per common share - basic | $ | 2.25 | $ | (0.04) | $ | 6.11 | $ | (0.02) | ||||||||||
Earnings (loss) per common share - diluted | Earnings (loss) per common share - diluted | $ | 2.51 | $ | (0.31) | $ | 3.83 | $ | 0.01 | Earnings (loss) per common share - diluted | $ | 2.23 | $ | (0.04) | $ | 6.06 | $ | (0.02) | ||||||||||
Weighted-average common shares outstanding - basic | Weighted-average common shares outstanding - basic | 747.0 | 739.3 | 745.9 | 739.7 | Weighted-average common shares outstanding - basic | 744.5 | 740.5 | 745.4 | 740.0 | ||||||||||||||||||
Weighted-average common shares outstanding - diluted | Weighted-average common shares outstanding - diluted | 752.9 | 739.3 | 751.4 | 741.0 | Weighted-average common shares outstanding - diluted | 750.0 | 740.5 | 750.9 | 740.0 | ||||||||||||||||||
Depreciation | Depreciation | $ | 518 | $ | 517 | $ | 1,033 | $ | 1,032 | Depreciation | $ | 517 | $ | 526 | $ | 1,550 | $ | 1,558 | ||||||||||
Capital expenditures | Capital expenditures | $ | 333 | $ | 273 | $ | 622 | $ | 668 | Capital expenditures | $ | 413 | $ | 287 | $ | 1,035 | $ | 955 |
Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
In millions (Unaudited) | In millions (Unaudited) | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions (Unaudited) | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||
Net income (loss) | Net income (loss) | $ | 1,932 | $ | (217) | $ | 2,938 | $ | 41 | Net income (loss) | $ | 1,706 | $ | (1) | $ | 4,644 | $ | 40 | ||||||||||
Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | ||||||||||||||||||||||||||
Unrealized gains (losses) on investments | Unrealized gains (losses) on investments | 17 | 76 | (32) | (24) | Unrealized gains (losses) on investments | (13) | 8 | (45) | (16) | ||||||||||||||||||
Cumulative translation adjustments | Cumulative translation adjustments | 65 | 63 | (188) | (100) | Cumulative translation adjustments | (157) | 91 | (345) | (9) | ||||||||||||||||||
Pension and other postretirement benefit plans | Pension and other postretirement benefit plans | 149 | 141 | 1,283 | 283 | Pension and other postretirement benefit plans | 149 | 147 | 1,432 | 430 | ||||||||||||||||||
Derivative instruments | Derivative instruments | 6 | 24 | 116 | (138) | Derivative instruments | 32 | 38 | 148 | (100) | ||||||||||||||||||
Total other comprehensive income | Total other comprehensive income | 237 | 304 | 1,179 | 21 | Total other comprehensive income | 11 | 284 | 1,190 | 305 | ||||||||||||||||||
Comprehensive income | Comprehensive income | 2,169 | 87 | 4,117 | 62 | Comprehensive income | 1,717 | 283 | 5,834 | 345 | ||||||||||||||||||
Comprehensive income attributable to noncontrolling interests, net of tax | Comprehensive income attributable to noncontrolling interests, net of tax | 31 | 8 | 46 | 27 | Comprehensive income attributable to noncontrolling interests, net of tax | 23 | 24 | 69 | 51 | ||||||||||||||||||
Comprehensive income attributable to Dow Inc. | Comprehensive income attributable to Dow Inc. | $ | 2,138 | $ | 79 | $ | 4,071 | $ | 35 | Comprehensive income attributable to Dow Inc. | $ | 1,694 | $ | 259 | $ | 5,765 | $ | 294 |
In millions, except share amounts (Unaudited) | In millions, except share amounts (Unaudited) | Jun 30, 2021 | Dec 31, 2020 | In millions, except share amounts (Unaudited) | Sep 30, 2021 | Dec 31, 2020 | ||||||||||
Assets | Assets | Assets | ||||||||||||||
Current Assets | Current Assets | Current Assets | ||||||||||||||
Cash and cash equivalents (variable interest entities restricted - 2021: $36; 2020: $26) | $ | 3,491 | $ | 5,104 | ||||||||||||
Cash and cash equivalents (variable interest entities restricted - 2021: $49; 2020: $26) | Cash and cash equivalents (variable interest entities restricted - 2021: $49; 2020: $26) | $ | 2,911 | $ | 5,104 | |||||||||||
Accounts and notes receivable: | Accounts and notes receivable: | Accounts and notes receivable: | ||||||||||||||
Trade (net of allowance for doubtful receivables - 2021: $59; 2020: $51) | Trade (net of allowance for doubtful receivables - 2021: $59; 2020: $51) | 6,456 | 4,839 | Trade (net of allowance for doubtful receivables - 2021: $59; 2020: $51) | 6,844 | 4,839 | ||||||||||
Other | Other | 2,650 | 2,551 | Other | 2,565 | 2,551 | ||||||||||
Inventories | Inventories | 6,952 | 5,701 | Inventories | 7,111 | 5,701 | ||||||||||
Other current assets | Other current assets | 803 | 889 | Other current assets | 962 | 889 | ||||||||||
Total current assets | Total current assets | 20,352 | 19,084 | Total current assets | 20,393 | 19,084 | ||||||||||
Investments | Investments | Investments | ||||||||||||||
Investment in nonconsolidated affiliates | Investment in nonconsolidated affiliates | 1,754 | 1,327 | Investment in nonconsolidated affiliates | 1,910 | 1,327 | ||||||||||
Other investments (investments carried at fair value - 2021: $1,655; 2020: $1,674) | 2,764 | 2,775 | ||||||||||||||
Other investments (investments carried at fair value - 2021: $1,958; 2020: $1,674) | Other investments (investments carried at fair value - 2021: $1,958; 2020: $1,674) | 3,053 | 2,775 | |||||||||||||
Noncurrent receivables | Noncurrent receivables | 480 | 465 | Noncurrent receivables | 472 | 465 | ||||||||||
Total investments | Total investments | 4,998 | 4,567 | Total investments | 5,435 | 4,567 | ||||||||||
Property | Property | Property | ||||||||||||||
Property | Property | 56,564 | 56,325 | Property | 56,522 | 56,325 | ||||||||||
Less: Accumulated depreciation | Less: Accumulated depreciation | 36,700 | 36,086 | Less: Accumulated depreciation | 36,874 | 36,086 | ||||||||||
Net property (variable interest entities restricted - 2021: $204; 2020: $232) | 19,864 | 20,239 | ||||||||||||||
Net property (variable interest entities restricted - 2021: $187; 2020: $232) | Net property (variable interest entities restricted - 2021: $187; 2020: $232) | 19,648 | 20,239 | |||||||||||||
Other Assets | Other Assets | Other Assets | ||||||||||||||
Goodwill | Goodwill | 8,833 | 8,908 | Goodwill | 8,801 | 8,908 | ||||||||||
Other intangible assets (net of accumulated amortization - 2021: $4,650; 2020: $4,428) | 3,093 | 3,352 | ||||||||||||||
Other intangible assets (net of accumulated amortization - 2021: $4,747; 2020: $4,428) | Other intangible assets (net of accumulated amortization - 2021: $4,747; 2020: $4,428) | 2,962 | 3,352 | |||||||||||||
Operating lease right-of-use assets | Operating lease right-of-use assets | 1,745 | 1,856 | Operating lease right-of-use assets | 1,727 | 1,856 | ||||||||||
Deferred income tax assets | Deferred income tax assets | 1,529 | 2,215 | Deferred income tax assets | 1,357 | 2,215 | ||||||||||
Deferred charges and other assets | Deferred charges and other assets | 1,354 | 1,249 | Deferred charges and other assets | 1,426 | 1,249 | ||||||||||
Total other assets | Total other assets | 16,554 | 17,580 | Total other assets | 16,273 | 17,580 | ||||||||||
Total Assets | Total Assets | $ | 61,768 | $ | 61,470 | Total Assets | $ | 61,749 | $ | 61,470 | ||||||
Liabilities and Equity | Liabilities and Equity | Liabilities and Equity | ||||||||||||||
Current Liabilities | Current Liabilities | Current Liabilities | ||||||||||||||
Notes payable | Notes payable | $ | 203 | $ | 156 | Notes payable | $ | 270 | $ | 156 | ||||||
Long-term debt due within one year | Long-term debt due within one year | 445 | 460 | Long-term debt due within one year | 291 | 460 | ||||||||||
Accounts payable: | Accounts payable: | Accounts payable: | ||||||||||||||
Trade | Trade | 4,664 | 3,763 | Trade | 4,601 | 3,763 | ||||||||||
Other | Other | 2,638 | 2,126 | Other | 2,896 | 2,126 | ||||||||||
Operating lease liabilities - current | Operating lease liabilities - current | 402 | 416 | Operating lease liabilities - current | 413 | 416 | ||||||||||
Income taxes payable | Income taxes payable | 462 | 397 | Income taxes payable | 621 | 397 | ||||||||||
Accrued and other current liabilities | Accrued and other current liabilities | 3,494 | 3,790 | Accrued and other current liabilities | 3,701 | 3,790 | ||||||||||
Total current liabilities | Total current liabilities | 12,308 | 11,108 | Total current liabilities | 12,793 | 11,108 | ||||||||||
Long-Term Debt (variable interest entities nonrecourse - 2021: $5; 2020: $6) | 15,093 | 16,491 | ||||||||||||||
Long-Term Debt (variable interest entities nonrecourse - 2021: $4; 2020: $6) | Long-Term Debt (variable interest entities nonrecourse - 2021: $4; 2020: $6) | 14,027 | 16,491 | |||||||||||||
Other Noncurrent Liabilities | Other Noncurrent Liabilities | Other Noncurrent Liabilities | ||||||||||||||
Deferred income tax liabilities | Deferred income tax liabilities | 504 | 405 | Deferred income tax liabilities | 501 | 405 | ||||||||||
Pension and other postretirement benefits - noncurrent | Pension and other postretirement benefits - noncurrent | 8,888 | 11,648 | Pension and other postretirement benefits - noncurrent | 8,586 | 11,648 | ||||||||||
Asbestos-related liabilities - noncurrent | Asbestos-related liabilities - noncurrent | 975 | 1,013 | Asbestos-related liabilities - noncurrent | 962 | 1,013 | ||||||||||
Operating lease liabilities - noncurrent | Operating lease liabilities - noncurrent | 1,419 | 1,521 | Operating lease liabilities - noncurrent | 1,428 | 1,521 | ||||||||||
Other noncurrent obligations | Other noncurrent obligations | 6,428 | 6,279 | Other noncurrent obligations | 6,424 | 6,279 | ||||||||||
Total other noncurrent liabilities | Total other noncurrent liabilities | 18,214 | 20,866 | Total other noncurrent liabilities | 17,901 | 20,866 | ||||||||||
Stockholders’ Equity | Stockholders’ Equity | Stockholders’ Equity | ||||||||||||||
Common stock (authorized 5,000,000,000 shares of $0.01 par value each; issued 2021: 761,524,466 shares; 2020: 755,993,198 shares) | 8 | 8 | ||||||||||||||
Common stock (authorized 5,000,000,000 shares of $0.01 par value each; issued 2021: 761,777,581 shares; 2020: 755,993,198 shares) | Common stock (authorized 5,000,000,000 shares of $0.01 par value each; issued 2021: 761,777,581 shares; 2020: 755,993,198 shares) | 8 | 8 | |||||||||||||
Additional paid-in capital | Additional paid-in capital | 7,898 | 7,595 | Additional paid-in capital | 7,988 | 7,595 | ||||||||||
Retained earnings | Retained earnings | 18,200 | 16,361 | Retained earnings | 19,357 | 16,361 | ||||||||||
Accumulated other comprehensive loss | Accumulated other comprehensive loss | (9,676) | (10,855) | Accumulated other comprehensive loss | (9,665) | (10,855) | ||||||||||
Unearned ESOP shares | Unearned ESOP shares | (32) | (49) | Unearned ESOP shares | (24) | (49) | ||||||||||
Treasury stock at cost (2021: 15,752,678 shares; 2020: 12,803,303 shares) | (825) | (625) | ||||||||||||||
Treasury stock at cost (2021: 22,163,169 shares; 2020: 12,803,303 shares) | Treasury stock at cost (2021: 22,163,169 shares; 2020: 12,803,303 shares) | (1,225) | (625) | |||||||||||||
Dow Inc.’s stockholders’ equity | Dow Inc.’s stockholders’ equity | 15,573 | 12,435 | Dow Inc.’s stockholders’ equity | 16,439 | 12,435 | ||||||||||
Noncontrolling interests | Noncontrolling interests | 580 | 570 | Noncontrolling interests | 589 | 570 | ||||||||||
Total equity | Total equity | 16,153 | 13,005 | Total equity | 17,028 | 13,005 | ||||||||||
Total Liabilities and Equity | Total Liabilities and Equity | $ | 61,768 | $ | 61,470 | Total Liabilities and Equity | $ | 61,749 | $ | 61,470 |
In millions (Unaudited) | In millions (Unaudited) | Six Months Ended | In millions (Unaudited) | Nine Months Ended | ||||||||||||
Jun 30, 2021 | Jun 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | |||||||||||||
Operating Activities | Operating Activities | Operating Activities | ||||||||||||||
Net income | Net income | $ | 2,938 | $ | 41 | Net income | $ | 4,644 | $ | 40 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | Depreciation and amortization | 1,462 | 1,424 | Depreciation and amortization | 2,187 | 2,148 | ||||||||||
Provision (credit) for deferred income tax | Provision (credit) for deferred income tax | 388 | (59) | Provision (credit) for deferred income tax | 488 | (198) | ||||||||||
Earnings of nonconsolidated affiliates less than (in excess of) dividends received | Earnings of nonconsolidated affiliates less than (in excess of) dividends received | (283) | 455 | Earnings of nonconsolidated affiliates less than (in excess of) dividends received | (519) | 515 | ||||||||||
Net periodic pension benefit cost | Net periodic pension benefit cost | 29 | 129 | Net periodic pension benefit cost | 34 | 195 | ||||||||||
Pension contributions | Pension contributions | (1,109) | (112) | Pension contributions | (1,166) | (188) | ||||||||||
Net gain on sales of assets, businesses and investments | Net gain on sales of assets, businesses and investments | (50) | (39) | Net gain on sales of assets, businesses and investments | (67) | (283) | ||||||||||
Restructuring and asset related charges - net | Restructuring and asset related charges - net | 22 | 102 | Restructuring and asset related charges - net | 22 | 719 | ||||||||||
Other net loss | Other net loss | 224 | 163 | Other net loss | 874 | 288 | ||||||||||
Changes in assets and liabilities, net of effects of acquired and divested companies: | Changes in assets and liabilities, net of effects of acquired and divested companies: | Changes in assets and liabilities, net of effects of acquired and divested companies: | ||||||||||||||
Accounts and notes receivable | Accounts and notes receivable | (1,903) | 696 | Accounts and notes receivable | (2,222) | 339 | ||||||||||
Inventories | Inventories | (1,278) | 429 | Inventories | (1,502) | 587 | ||||||||||
Accounts payable | Accounts payable | 1,357 | (896) | Accounts payable | 1,487 | (560) | ||||||||||
Other assets and liabilities, net | Other assets and liabilities, net | (4) | 502 | Other assets and liabilities, net | 252 | 994 | ||||||||||
Cash provided by operating activities - continuing operations | Cash provided by operating activities - continuing operations | 1,793 | 2,835 | Cash provided by operating activities - continuing operations | 4,512 | 4,596 | ||||||||||
Cash used for operating activities - discontinued operations | Cash used for operating activities - discontinued operations | (80) | (6) | Cash used for operating activities - discontinued operations | (78) | — | ||||||||||
Cash provided by operating activities | Cash provided by operating activities | 1,713 | 2,829 | Cash provided by operating activities | 4,434 | 4,596 | ||||||||||
Investing Activities | Investing Activities | Investing Activities | ||||||||||||||
Capital expenditures | Capital expenditures | (622) | (668) | Capital expenditures | (1,035) | (955) | ||||||||||
Investment in gas field developments | Investment in gas field developments | (24) | (5) | Investment in gas field developments | (44) | (5) | ||||||||||
Purchases of previously leased assets | Purchases of previously leased assets | (3) | (2) | Purchases of previously leased assets | (5) | (4) | ||||||||||
Proceeds from sales of property and businesses, net of cash divested | Proceeds from sales of property and businesses, net of cash divested | 10 | 14 | Proceeds from sales of property and businesses, net of cash divested | 15 | 295 | ||||||||||
Acquisitions of property and businesses, net of cash acquired | Acquisitions of property and businesses, net of cash acquired | (107) | 0 | Acquisitions of property and businesses, net of cash acquired | (107) | (130) | ||||||||||
Investments in and loans to nonconsolidated affiliates | Investments in and loans to nonconsolidated affiliates | 0 | (236) | Investments in and loans to nonconsolidated affiliates | — | (280) | ||||||||||
Distributions and loan repayments from nonconsolidated affiliates | Distributions and loan repayments from nonconsolidated affiliates | 11 | 6 | Distributions and loan repayments from nonconsolidated affiliates | 11 | 7 | ||||||||||
Purchases of investments | Purchases of investments | (560) | (462) | Purchases of investments | (1,004) | (582) | ||||||||||
Proceeds from sales and maturities of investments | Proceeds from sales and maturities of investments | 527 | 790 | Proceeds from sales and maturities of investments | 644 | 1,009 | ||||||||||
Other investing activities, net | Other investing activities, net | 0 | 29 | Other investing activities, net | (10) | 29 | ||||||||||
Cash used for investing activities | Cash used for investing activities | (768) | (534) | Cash used for investing activities | (1,535) | (616) | ||||||||||
Financing Activities | Financing Activities | Financing Activities | ||||||||||||||
Changes in short-term notes payable | Changes in short-term notes payable | (38) | 181 | Changes in short-term notes payable | (44) | (267) | ||||||||||
Proceeds from issuance of short-term debt greater than three months | Proceeds from issuance of short-term debt greater than three months | 72 | 163 | Proceeds from issuance of short-term debt greater than three months | 144 | 163 | ||||||||||
Payments on short-term debt greater than three months | Payments on short-term debt greater than three months | 0 | (100) | Payments on short-term debt greater than three months | — | (163) | ||||||||||
Proceeds from issuance of long-term debt | Proceeds from issuance of long-term debt | 68 | 2,509 | Proceeds from issuance of long-term debt | 95 | 4,649 | ||||||||||
Payments on long-term debt | Payments on long-term debt | (1,425) | (2,359) | Payments on long-term debt | (2,638) | (4,347) | ||||||||||
Purchases of treasury stock | Purchases of treasury stock | (200) | (125) | Purchases of treasury stock | (600) | (125) | ||||||||||
Proceeds from issuance of stock | Proceeds from issuance of stock | 200 | 30 | Proceeds from issuance of stock | 212 | 53 | ||||||||||
Transaction financing, debt issuance and other costs | Transaction financing, debt issuance and other costs | (95) | (99) | Transaction financing, debt issuance and other costs | (536) | (175) | ||||||||||
Employee taxes paid for share-based payment arrangements | Employee taxes paid for share-based payment arrangements | (11) | (26) | Employee taxes paid for share-based payment arrangements | (11) | (26) | ||||||||||
Distributions to noncontrolling interests | Distributions to noncontrolling interests | (28) | (19) | Distributions to noncontrolling interests | (35) | (19) | ||||||||||
Dividends paid to stockholders | Dividends paid to stockholders | (1,043) | (1,034) | Dividends paid to stockholders | (1,561) | (1,552) | ||||||||||
Cash used for financing activities | Cash used for financing activities | (2,500) | (879) | Cash used for financing activities | (4,974) | (1,809) | ||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | Effect of exchange rate changes on cash, cash equivalents and restricted cash | (12) | (66) | Effect of exchange rate changes on cash, cash equivalents and restricted cash | (57) | 4 | ||||||||||
Summary | Summary | Summary | ||||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | Increase (decrease) in cash, cash equivalents and restricted cash | (1,567) | 1,350 | Increase (decrease) in cash, cash equivalents and restricted cash | (2,132) | 2,175 | ||||||||||
Cash, cash equivalents and restricted cash at beginning of period | Cash, cash equivalents and restricted cash at beginning of period | 5,108 | 2,380 | Cash, cash equivalents and restricted cash at beginning of period | 5,108 | 2,380 | ||||||||||
Cash, cash equivalents and restricted cash at end of period | Cash, cash equivalents and restricted cash at end of period | $ | 3,541 | $ | 3,730 | Cash, cash equivalents and restricted cash at end of period | $ | 2,976 | $ | 4,555 | ||||||
Less: Restricted cash and cash equivalents, included in "Other current assets" | Less: Restricted cash and cash equivalents, included in "Other current assets" | 50 | 6 | Less: Restricted cash and cash equivalents, included in "Other current assets" | 65 | 6 | ||||||||||
Cash and cash equivalents at end of period | Cash and cash equivalents at end of period | $ | 3,491 | $ | 3,724 | Cash and cash equivalents at end of period | $ | 2,911 | $ | 4,549 |
Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
In millions, except per share amounts (Unaudited) | In millions, except per share amounts (Unaudited) | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions, except per share amounts (Unaudited) | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||
Common Stock | Common Stock | Common Stock | ||||||||||||||||||||||||||
Balance at beginning and end of period | Balance at beginning and end of period | $ | 8 | $ | 8 | $ | 8 | $ | 8 | Balance at beginning and end of period | $ | 8 | $ | 8 | $ | 8 | $ | 8 | ||||||||||
Additional Paid-in Capital | Additional Paid-in Capital | Additional Paid-in Capital | ||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | 7,743 | 7,370 | 7,595 | 7,325 | Balance at beginning of period | 7,898 | 7,431 | 7,595 | 7,325 | ||||||||||||||||||
Common stock issued/sold | Common stock issued/sold | 73 | 14 | 200 | 30 | Common stock issued/sold | 11 | 23 | 211 | 53 | ||||||||||||||||||
Stock-based compensation and allocation of ESOP shares | Stock-based compensation and allocation of ESOP shares | 82 | 47 | 103 | 76 | Stock-based compensation and allocation of ESOP shares | 79 | 43 | 182 | 119 | ||||||||||||||||||
Balance at end of period | Balance at end of period | 7,898 | 7,431 | 7,898 | 7,431 | Balance at end of period | 7,988 | 7,497 | 7,988 | 7,497 | ||||||||||||||||||
Retained Earnings | Retained Earnings | Retained Earnings | ||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | 16,829 | 16,763 | 16,361 | 17,045 | Balance at beginning of period | 18,200 | 16,017 | 16,361 | 17,045 | ||||||||||||||||||
Net income (loss) available for Dow Inc. common stockholders | Net income (loss) available for Dow Inc. common stockholders | 1,901 | (225) | 2,892 | 14 | Net income (loss) available for Dow Inc. common stockholders | 1,683 | (25) | 4,575 | (11) | ||||||||||||||||||
Dividends to stockholders | Dividends to stockholders | (522) | (516) | (1,043) | (1,034) | Dividends to stockholders | (518) | (518) | (1,561) | (1,552) | ||||||||||||||||||
Other | Other | (8) | (5) | (10) | (8) | Other | (8) | (2) | (18) | (10) | ||||||||||||||||||
Balance at end of period | Balance at end of period | 18,200 | 16,017 | 18,200 | 16,017 | Balance at end of period | 19,357 | 15,472 | 19,357 | 15,472 | ||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | (9,913) | (10,529) | (10,855) | (10,246) | Balance at beginning of period | (9,676) | (10,225) | (10,855) | (10,246) | ||||||||||||||||||
Other comprehensive income | Other comprehensive income | 237 | 304 | 1,179 | 21 | Other comprehensive income | 11 | 284 | 1,190 | 305 | ||||||||||||||||||
Balance at end of period | Balance at end of period | (9,676) | (10,225) | (9,676) | (10,225) | Balance at end of period | (9,665) | (9,941) | (9,665) | (9,941) | ||||||||||||||||||
Unearned ESOP Shares | Unearned ESOP Shares | Unearned ESOP Shares | ||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | (39) | (81) | (49) | (91) | Balance at beginning of period | (32) | (69) | (49) | (91) | ||||||||||||||||||
Allocation of ESOP shares | Allocation of ESOP shares | 7 | 12 | 17 | 22 | Allocation of ESOP shares | 8 | 12 | 25 | 34 | ||||||||||||||||||
Balance at end of period | Balance at end of period | (32) | (69) | (32) | (69) | Balance at end of period | (24) | (57) | (24) | (57) | ||||||||||||||||||
Treasury Stock | Treasury Stock | Treasury Stock | ||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | (625) | (625) | (625) | (500) | Balance at beginning of period | (825) | (625) | (625) | (500) | ||||||||||||||||||
Treasury stock purchases | Treasury stock purchases | (200) | 0 | (200) | (125) | Treasury stock purchases | (400) | — | (600) | (125) | ||||||||||||||||||
Balance at end of period | Balance at end of period | (825) | (625) | (825) | (625) | Balance at end of period | (1,225) | (625) | (1,225) | (625) | ||||||||||||||||||
Dow Inc.'s stockholders' equity | Dow Inc.'s stockholders' equity | 15,573 | 12,537 | 15,573 | 12,537 | Dow Inc.'s stockholders' equity | 16,439 | 12,354 | 16,439 | 12,354 | ||||||||||||||||||
Noncontrolling Interests | Noncontrolling Interests | 580 | 560 | 580 | 560 | Noncontrolling Interests | 589 | 578 | 589 | 578 | ||||||||||||||||||
Total Equity | Total Equity | $ | 16,153 | $ | 13,097 | $ | 16,153 | $ | 13,097 | Total Equity | $ | 17,028 | $ | 12,932 | $ | 17,028 | $ | 12,932 | ||||||||||
Dividends declared per share of common stock | Dividends declared per share of common stock | $ | 0.70 | $ | 0.70 | $ | 1.40 | $ | 1.40 | Dividends declared per share of common stock | $ | 0.70 | $ | 0.70 | $ | 2.10 | $ | 2.10 |
Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
In millions (Unaudited) | In millions (Unaudited) | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions (Unaudited) | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||
Net sales | Net sales | $ | 13,885 | $ | 8,354 | $ | 25,767 | $ | 18,124 | Net sales | $ | 14,837 | $ | 9,712 | $ | 40,604 | $ | 27,836 | ||||||||||
Cost of sales | Cost of sales | 10,739 | 7,608 | 20,800 | 15,838 | Cost of sales | 11,610 | 8,371 | 32,410 | 24,209 | ||||||||||||||||||
Research and development expenses | Research and development expenses | 228 | 182 | 422 | 361 | Research and development expenses | 210 | 193 | 632 | 554 | ||||||||||||||||||
Selling, general and administrative expenses | Selling, general and administrative expenses | 440 | 356 | 806 | 690 | Selling, general and administrative expenses | 403 | 372 | 1,209 | 1,062 | ||||||||||||||||||
Amortization of intangibles | Amortization of intangibles | 100 | 100 | 201 | 200 | Amortization of intangibles | 100 | 100 | 301 | 300 | ||||||||||||||||||
Restructuring and asset related charges - net | Restructuring and asset related charges - net | 22 | 6 | 22 | 102 | Restructuring and asset related charges - net | — | 617 | 22 | 719 | ||||||||||||||||||
Integration and separation costs | Integration and separation costs | 0 | 46 | 0 | 111 | Integration and separation costs | — | 63 | — | 174 | ||||||||||||||||||
Equity in earnings (losses) of nonconsolidated affiliates | Equity in earnings (losses) of nonconsolidated affiliates | 278 | (95) | 502 | (184) | Equity in earnings (losses) of nonconsolidated affiliates | 249 | 60 | 751 | (124) | ||||||||||||||||||
Sundry income (expense) - net | Sundry income (expense) - net | 6 | 51 | 125 | (31) | Sundry income (expense) - net | (356) | 181 | (231) | 150 | ||||||||||||||||||
Interest income | Interest income | 13 | 5 | 21 | 21 | Interest income | 15 | 7 | 36 | 28 | ||||||||||||||||||
Interest expense and amortization of debt discount | Interest expense and amortization of debt discount | 187 | 200 | 383 | 415 | Interest expense and amortization of debt discount | 178 | 202 | 561 | 617 | ||||||||||||||||||
Income (loss) before income taxes | 2,466 | (183) | 3,781 | 213 | ||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 2,244 | 42 | 6,025 | 255 | |||||||||||||||||||||||
Provision for income taxes | Provision for income taxes | 521 | 34 | 838 | 172 | Provision for income taxes | 542 | 43 | 1,380 | 215 | ||||||||||||||||||
Net income (loss) | Net income (loss) | 1,945 | (217) | 2,943 | 41 | Net income (loss) | 1,702 | (1) | 4,645 | 40 | ||||||||||||||||||
Net income attributable to noncontrolling interests | Net income attributable to noncontrolling interests | 31 | 8 | 46 | 27 | Net income attributable to noncontrolling interests | 23 | 24 | 69 | 51 | ||||||||||||||||||
Net income (loss) available for The Dow Chemical Company common stockholder | Net income (loss) available for The Dow Chemical Company common stockholder | $ | 1,914 | $ | (225) | $ | 2,897 | $ | 14 | Net income (loss) available for The Dow Chemical Company common stockholder | $ | 1,679 | $ | (25) | $ | 4,576 | $ | (11) | ||||||||||
Depreciation | Depreciation | $ | 518 | $ | 517 | $ | 1,033 | $ | 1,032 | Depreciation | $ | 517 | $ | 526 | $ | 1,550 | $ | 1,558 | ||||||||||
Capital expenditures | Capital expenditures | $ | 333 | $ | 273 | $ | 622 | $ | 668 | Capital expenditures | $ | 413 | $ | 287 | $ | 1,035 | $ | 955 |
Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
In millions (Unaudited) | In millions (Unaudited) | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions (Unaudited) | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||
Net income (loss) | Net income (loss) | $ | 1,945 | $ | (217) | $ | 2,943 | $ | 41 | Net income (loss) | $ | 1,702 | $ | (1) | $ | 4,645 | $ | 40 | ||||||||||
Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | ||||||||||||||||||||||||||
Unrealized gains (losses) on investments | Unrealized gains (losses) on investments | 17 | 76 | (32) | (24) | Unrealized gains (losses) on investments | (13) | 8 | (45) | (16) | ||||||||||||||||||
Cumulative translation adjustments | Cumulative translation adjustments | 65 | 63 | (188) | (100) | Cumulative translation adjustments | (157) | 91 | (345) | (9) | ||||||||||||||||||
Pension and other postretirement benefit plans | Pension and other postretirement benefit plans | 149 | 141 | 1,283 | 283 | Pension and other postretirement benefit plans | 149 | 147 | 1,432 | 430 | ||||||||||||||||||
Derivative instruments | Derivative instruments | 6 | 24 | 116 | (138) | Derivative instruments | 32 | 38 | 148 | (100) | ||||||||||||||||||
Total other comprehensive income | Total other comprehensive income | 237 | 304 | 1,179 | 21 | Total other comprehensive income | 11 | 284 | 1,190 | 305 | ||||||||||||||||||
Comprehensive income | Comprehensive income | 2,182 | 87 | 4,122 | 62 | Comprehensive income | 1,713 | 283 | 5,835 | 345 | ||||||||||||||||||
Comprehensive income attributable to noncontrolling interests, net of tax | Comprehensive income attributable to noncontrolling interests, net of tax | 31 | 8 | 46 | 27 | Comprehensive income attributable to noncontrolling interests, net of tax | 23 | 24 | 69 | 51 | ||||||||||||||||||
Comprehensive income attributable to The Dow Chemical Company | Comprehensive income attributable to The Dow Chemical Company | $ | 2,151 | $ | 79 | $ | 4,076 | $ | 35 | Comprehensive income attributable to The Dow Chemical Company | $ | 1,690 | $ | 259 | $ | 5,766 | $ | 294 |
In millions, except share amounts (Unaudited) | In millions, except share amounts (Unaudited) | Jun 30, 2021 | Dec 31, 2020 | In millions, except share amounts (Unaudited) | Sep 30, 2021 | Dec 31, 2020 | ||||||||||
Assets | Assets | Assets | ||||||||||||||
Current Assets | Current Assets | Current Assets | ||||||||||||||
Cash and cash equivalents (variable interest entities restricted - 2021: $36; 2020: $26) | $ | 3,491 | $ | 5,104 | ||||||||||||
Cash and cash equivalents (variable interest entities restricted - 2021: $49; 2020: $26) | Cash and cash equivalents (variable interest entities restricted - 2021: $49; 2020: $26) | $ | 2,911 | $ | 5,104 | |||||||||||
Accounts and notes receivable: | Accounts and notes receivable: | Accounts and notes receivable: | ||||||||||||||
Trade (net of allowance for doubtful receivables - 2021: $59; 2020: $51) | Trade (net of allowance for doubtful receivables - 2021: $59; 2020: $51) | 6,456 | 4,839 | Trade (net of allowance for doubtful receivables - 2021: $59; 2020: $51) | 6,844 | 4,839 | ||||||||||
Other | Other | 2,653 | 2,553 | Other | 2,566 | 2,553 | ||||||||||
Inventories | Inventories | 6,952 | 5,701 | Inventories | 7,111 | 5,701 | ||||||||||
Other current assets | Other current assets | 759 | 801 | Other current assets | 927 | 801 | ||||||||||
Total current assets | Total current assets | 20,311 | 18,998 | Total current assets | 20,359 | 18,998 | ||||||||||
Investments | Investments | Investments | ||||||||||||||
Investment in nonconsolidated affiliates | Investment in nonconsolidated affiliates | 1,754 | 1,327 | Investment in nonconsolidated affiliates | 1,910 | 1,327 | ||||||||||
Other investments (investments carried at fair value - 2021: $1,655; 2020: $1,674) | 2,764 | 2,775 | ||||||||||||||
Other investments (investments carried at fair value - 2021: $1,958; 2020: $1,674) | Other investments (investments carried at fair value - 2021: $1,958; 2020: $1,674) | 3,053 | 2,775 | |||||||||||||
Noncurrent receivables | Noncurrent receivables | 442 | 426 | Noncurrent receivables | 436 | 426 | ||||||||||
Total investments | Total investments | 4,960 | 4,528 | Total investments | 5,399 | 4,528 | ||||||||||
Property | Property | Property | ||||||||||||||
Property | Property | 56,564 | 56,325 | Property | 56,522 | 56,325 | ||||||||||
Less accumulated depreciation | Less accumulated depreciation | 36,700 | 36,086 | Less accumulated depreciation | 36,874 | 36,086 | ||||||||||
Net property (variable interest entities restricted - 2021: $204; 2020: $232) | 19,864 | 20,239 | ||||||||||||||
Net property (variable interest entities restricted - 2021: $187; 2020: $232) | Net property (variable interest entities restricted - 2021: $187; 2020: $232) | 19,648 | 20,239 | |||||||||||||
Other Assets | Other Assets | Other Assets | ||||||||||||||
Goodwill | Goodwill | 8,833 | 8,908 | Goodwill | 8,801 | 8,908 | ||||||||||
Other intangible assets (net of accumulated amortization - 2021: $4,650; 2020: $4,428) | 3,093 | 3,352 | ||||||||||||||
Other intangible assets (net of accumulated amortization - 2021: $4,747; 2020: $4,428) | Other intangible assets (net of accumulated amortization - 2021: $4,747; 2020: $4,428) | 2,962 | 3,352 | |||||||||||||
Operating lease right-of-use assets | Operating lease right-of-use assets | 1,745 | 1,856 | Operating lease right-of-use assets | 1,727 | 1,856 | ||||||||||
Deferred income tax assets | Deferred income tax assets | 1,529 | 2,215 | Deferred income tax assets | 1,357 | 2,215 | ||||||||||
Deferred charges and other assets | Deferred charges and other assets | 1,354 | 1,249 | Deferred charges and other assets | 1,425 | 1,249 | ||||||||||
Total other assets | Total other assets | 16,554 | 17,580 | Total other assets | 16,272 | 17,580 | ||||||||||
Total Assets | Total Assets | $ | 61,689 | $ | 61,345 | Total Assets | $ | 61,678 | $ | 61,345 | ||||||
Liabilities and Equity | Liabilities and Equity | Liabilities and Equity | ||||||||||||||
Current Liabilities | Current Liabilities | Current Liabilities | ||||||||||||||
Notes payable | Notes payable | $ | 203 | $ | 156 | Notes payable | $ | 270 | $ | 156 | ||||||
Long-term debt due within one year | Long-term debt due within one year | 445 | 460 | Long-term debt due within one year | 291 | 460 | ||||||||||
Accounts payable: | Accounts payable: | Accounts payable: | ||||||||||||||
Trade | Trade | 4,664 | 3,763 | Trade | 4,601 | 3,763 | ||||||||||
Other | Other | 2,638 | 2,126 | Other | 2,896 | 2,126 | ||||||||||
Operating lease liabilities - current | Operating lease liabilities - current | 402 | 416 | Operating lease liabilities - current | 413 | 416 | ||||||||||
Income taxes payable | Income taxes payable | 462 | 397 | Income taxes payable | 621 | 397 | ||||||||||
Accrued and other current liabilities | Accrued and other current liabilities | 3,198 | 3,256 | Accrued and other current liabilities | 3,413 | 3,256 | ||||||||||
Total current liabilities | Total current liabilities | 12,012 | 10,574 | Total current liabilities | 12,505 | 10,574 | ||||||||||
Long-Term Debt (variable interest entities nonrecourse - 2021: $5; 2020: $6) | 15,093 | 16,491 | ||||||||||||||
Long-Term Debt (variable interest entities nonrecourse - 2021: $4; 2020: $6) | Long-Term Debt (variable interest entities nonrecourse - 2021: $4; 2020: $6) | 14,027 | 16,491 | |||||||||||||
Other Noncurrent Liabilities | Other Noncurrent Liabilities | Other Noncurrent Liabilities | ||||||||||||||
Deferred income tax liabilities | Deferred income tax liabilities | 504 | 405 | Deferred income tax liabilities | 501 | 405 | ||||||||||
Pension and other postretirement benefits - noncurrent | Pension and other postretirement benefits - noncurrent | 8,888 | 11,648 | Pension and other postretirement benefits - noncurrent | 8,586 | 11,648 | ||||||||||
Asbestos-related liabilities - noncurrent | Asbestos-related liabilities - noncurrent | 975 | 1,013 | Asbestos-related liabilities - noncurrent | 962 | 1,013 | ||||||||||
Operating lease liabilities - noncurrent | Operating lease liabilities - noncurrent | 1,419 | 1,521 | Operating lease liabilities - noncurrent | 1,428 | 1,521 | ||||||||||
Other noncurrent obligations | Other noncurrent obligations | 6,275 | 6,124 | Other noncurrent obligations | 6,276 | 6,124 | ||||||||||
Total other noncurrent liabilities | Total other noncurrent liabilities | 18,061 | 20,711 | Total other noncurrent liabilities | 17,753 | 20,711 | ||||||||||
Stockholder's Equity | Stockholder's Equity | Stockholder's Equity | ||||||||||||||
Common stock (authorized and issued 100 shares of $0.01 par value each) | Common stock (authorized and issued 100 shares of $0.01 par value each) | 0 | 0 | Common stock (authorized and issued 100 shares of $0.01 par value each) | — | — | ||||||||||
Additional paid-in capital | Additional paid-in capital | 7,906 | 7,603 | Additional paid-in capital | 7,996 | 7,603 | ||||||||||
Retained earnings | Retained earnings | 17,745 | 16,300 | Retained earnings | 18,497 | 16,300 | ||||||||||
Accumulated other comprehensive loss | Accumulated other comprehensive loss | (9,676) | (10,855) | Accumulated other comprehensive loss | (9,665) | (10,855) | ||||||||||
Unearned ESOP shares | Unearned ESOP shares | (32) | (49) | Unearned ESOP shares | (24) | (49) | ||||||||||
The Dow Chemical Company’s stockholder's equity | The Dow Chemical Company’s stockholder's equity | 15,943 | 12,999 | The Dow Chemical Company’s stockholder's equity | 16,804 | 12,999 | ||||||||||
Noncontrolling interests | Noncontrolling interests | 580 | 570 | Noncontrolling interests | 589 | 570 | ||||||||||
Total equity | Total equity | 16,523 | 13,569 | Total equity | 17,393 | 13,569 | ||||||||||
Total Liabilities and Equity | Total Liabilities and Equity | $ | 61,689 | $ | 61,345 | Total Liabilities and Equity | $ | 61,678 | $ | 61,345 |
In millions (Unaudited) | In millions (Unaudited) | Six Months Ended | In millions (Unaudited) | Nine Months Ended | ||||||||||||
Jun 30, 2021 | Jun 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | |||||||||||||
Operating Activities | Operating Activities | Operating Activities | ||||||||||||||
Net income | Net income | $ | 2,943 | $ | 41 | Net income | $ | 4,645 | $ | 40 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | Depreciation and amortization | 1,462 | 1,424 | Depreciation and amortization | 2,187 | 2,148 | ||||||||||
Provision (credit) for deferred income tax | Provision (credit) for deferred income tax | 388 | (59) | Provision (credit) for deferred income tax | 488 | (198) | ||||||||||
Earnings of nonconsolidated affiliates less than (in excess of) dividends received | Earnings of nonconsolidated affiliates less than (in excess of) dividends received | (283) | 455 | Earnings of nonconsolidated affiliates less than (in excess of) dividends received | (519) | 515 | ||||||||||
Net periodic pension benefit cost | Net periodic pension benefit cost | 29 | 129 | Net periodic pension benefit cost | 34 | 195 | ||||||||||
Pension contributions | Pension contributions | (1,109) | (112) | Pension contributions | (1,166) | (188) | ||||||||||
Net gain on sales of assets, businesses and investments | Net gain on sales of assets, businesses and investments | (50) | (39) | Net gain on sales of assets, businesses and investments | (67) | (283) | ||||||||||
Restructuring and asset related charges - net | Restructuring and asset related charges - net | 22 | 102 | Restructuring and asset related charges - net | 22 | 719 | ||||||||||
Other net loss | Other net loss | 224 | 167 | Other net loss | 878 | 291 | ||||||||||
Changes in assets and liabilities, net of effects of acquired and divested companies: | Changes in assets and liabilities, net of effects of acquired and divested companies: | Changes in assets and liabilities, net of effects of acquired and divested companies: | ||||||||||||||
Accounts and notes receivable | Accounts and notes receivable | (1,903) | 696 | Accounts and notes receivable | (2,222) | 339 | ||||||||||
Inventories | Inventories | (1,278) | 429 | Inventories | (1,502) | 587 | ||||||||||
Accounts payable | Accounts payable | 1,357 | (896) | Accounts payable | 1,487 | (560) | ||||||||||
Other assets and liabilities, net | Other assets and liabilities, net | 110 | 505 | Other assets and liabilities, net | 369 | 999 | ||||||||||
Cash provided by operating activities | Cash provided by operating activities | 1,912 | 2,842 | Cash provided by operating activities | 4,634 | 4,604 | ||||||||||
Investing Activities | Investing Activities | Investing Activities | ||||||||||||||
Capital expenditures | Capital expenditures | (622) | (668) | Capital expenditures | (1,035) | (955) | ||||||||||
Investment in gas field developments | Investment in gas field developments | (24) | (5) | Investment in gas field developments | (44) | (5) | ||||||||||
Purchases of previously leased assets | Purchases of previously leased assets | (3) | (2) | Purchases of previously leased assets | (5) | (4) | ||||||||||
Proceeds from sales of property and businesses, net of cash divested | Proceeds from sales of property and businesses, net of cash divested | 10 | 14 | Proceeds from sales of property and businesses, net of cash divested | 15 | 295 | ||||||||||
Acquisitions of property and businesses, net of cash acquired | Acquisitions of property and businesses, net of cash acquired | (107) | 0 | Acquisitions of property and businesses, net of cash acquired | (107) | (130) | ||||||||||
Investments in and loans to nonconsolidated affiliates | Investments in and loans to nonconsolidated affiliates | 0 | (236) | Investments in and loans to nonconsolidated affiliates | — | (280) | ||||||||||
Distributions and loan repayments from nonconsolidated affiliates | Distributions and loan repayments from nonconsolidated affiliates | 11 | 6 | Distributions and loan repayments from nonconsolidated affiliates | 11 | 7 | ||||||||||
Purchases of investments | Purchases of investments | (560) | (462) | Purchases of investments | (1,004) | (582) | ||||||||||
Proceeds from sales and maturities of investments | Proceeds from sales and maturities of investments | 527 | 790 | Proceeds from sales and maturities of investments | 644 | 1,009 | ||||||||||
Other investing activities, net | Other investing activities, net | 0 | 29 | Other investing activities, net | (10) | 29 | ||||||||||
Cash used for investing activities | Cash used for investing activities | (768) | (534) | Cash used for investing activities | (1,535) | (616) | ||||||||||
Financing Activities | Financing Activities | Financing Activities | ||||||||||||||
Changes in short-term notes payable | Changes in short-term notes payable | (38) | 181 | Changes in short-term notes payable | (44) | (267) | ||||||||||
Proceeds from issuance of short-term debt greater than three months | Proceeds from issuance of short-term debt greater than three months | 72 | 163 | Proceeds from issuance of short-term debt greater than three months | 144 | 163 | ||||||||||
Payments on short-term debt greater than three months | Payments on short-term debt greater than three months | 0 | (100) | Payments on short-term debt greater than three months | — | (163) | ||||||||||
Proceeds from issuance of long-term debt | Proceeds from issuance of long-term debt | 68 | 2,509 | Proceeds from issuance of long-term debt | 95 | 4,649 | ||||||||||
Payments on long-term debt | Payments on long-term debt | (1,425) | (2,359) | Payments on long-term debt | (2,638) | (4,347) | ||||||||||
Proceeds from issuance of stock | Proceeds from issuance of stock | 200 | 30 | Proceeds from issuance of stock | 212 | 53 | ||||||||||
Transaction financing, debt issuance and other costs | Transaction financing, debt issuance and other costs | (95) | (99) | Transaction financing, debt issuance and other costs | (536) | (175) | ||||||||||
Employee taxes paid for share-based payment arrangements | Employee taxes paid for share-based payment arrangements | (11) | (26) | Employee taxes paid for share-based payment arrangements | (11) | (26) | ||||||||||
Distributions to noncontrolling interests | Distributions to noncontrolling interests | (28) | (19) | Distributions to noncontrolling interests | (35) | (19) | ||||||||||
Dividends paid to Dow Inc. | Dividends paid to Dow Inc. | (1,442) | (1,172) | Dividends paid to Dow Inc. | (2,361) | (1,685) | ||||||||||
Cash used for financing activities | Cash used for financing activities | (2,699) | (892) | Cash used for financing activities | (5,174) | (1,817) | ||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | Effect of exchange rate changes on cash, cash equivalents and restricted cash | (12) | (66) | Effect of exchange rate changes on cash, cash equivalents and restricted cash | (57) | 4 | ||||||||||
Summary | Summary | Summary | ||||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | Increase (decrease) in cash, cash equivalents and restricted cash | (1,567) | 1,350 | Increase (decrease) in cash, cash equivalents and restricted cash | (2,132) | 2,175 | ||||||||||
Cash, cash equivalents and restricted cash at beginning of period | Cash, cash equivalents and restricted cash at beginning of period | 5,108 | 2,380 | Cash, cash equivalents and restricted cash at beginning of period | 5,108 | 2,380 | ||||||||||
Cash, cash equivalents and restricted cash at end of period | Cash, cash equivalents and restricted cash at end of period | $ | 3,541 | $ | 3,730 | Cash, cash equivalents and restricted cash at end of period | $ | 2,976 | $ | 4,555 | ||||||
Less: Restricted cash and cash equivalents, included in "Other current assets" | Less: Restricted cash and cash equivalents, included in "Other current assets" | 50 | 6 | Less: Restricted cash and cash equivalents, included in "Other current assets" | 65 | 6 | ||||||||||
Cash and cash equivalents at end of period | Cash and cash equivalents at end of period | $ | 3,491 | $ | 3,724 | Cash and cash equivalents at end of period | $ | 2,911 | $ | 4,549 |
Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
In millions (Unaudited) | In millions (Unaudited) | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions (Unaudited) | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||
Common Stock | Common Stock | Common Stock | ||||||||||||||||||||||||||
Balance at beginning and end of period | Balance at beginning and end of period | $ | 0 | $ | 0 | $ | 0 | $ | 0 | Balance at beginning and end of period | $ | — | $ | — | $ | — | $ | — | ||||||||||
Additional Paid-in Capital | Additional Paid-in Capital | Additional Paid-in Capital | ||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | 7,751 | 7,378 | 7,603 | 7,333 | Balance at beginning of period | 7,906 | 7,439 | 7,603 | 7,333 | ||||||||||||||||||
Issuance of parent company stock - Dow Inc. | Issuance of parent company stock - Dow Inc. | 73 | 14 | 200 | 30 | Issuance of parent company stock - Dow Inc. | 11 | 23 | 211 | 53 | ||||||||||||||||||
Stock-based compensation and allocation of ESOP shares | Stock-based compensation and allocation of ESOP shares | 82 | 47 | 103 | 76 | Stock-based compensation and allocation of ESOP shares | 79 | 43 | 182 | 119 | ||||||||||||||||||
Balance at end of period | Balance at end of period | 7,906 | 7,439 | 7,906 | 7,439 | Balance at end of period | 7,996 | 7,505 | 7,996 | 7,505 | ||||||||||||||||||
Retained Earnings | Retained Earnings | Retained Earnings | ||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | 16,577 | 16,905 | 16,300 | 17,313 | Balance at beginning of period | 17,745 | 16,147 | 16,300 | 17,313 | ||||||||||||||||||
Net income (loss) available for The Dow Chemical Company common stockholder | Net income (loss) available for The Dow Chemical Company common stockholder | 1,914 | (225) | 2,897 | 14 | Net income (loss) available for The Dow Chemical Company common stockholder | 1,679 | (25) | 4,576 | (11) | ||||||||||||||||||
Dividends to Dow Inc. | Dividends to Dow Inc. | (739) | (529) | (1,442) | (1,172) | Dividends to Dow Inc. | (919) | (513) | (2,361) | (1,685) | ||||||||||||||||||
Other | Other | (7) | (4) | (10) | (8) | Other | (8) | (3) | (18) | (11) | ||||||||||||||||||
Balance at end of period | Balance at end of period | 17,745 | 16,147 | 17,745 | 16,147 | Balance at end of period | 18,497 | 15,606 | 18,497 | 15,606 | ||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | (9,913) | (10,529) | (10,855) | (10,246) | Balance at beginning of period | (9,676) | (10,225) | (10,855) | (10,246) | ||||||||||||||||||
Other comprehensive income | Other comprehensive income | 237 | 304 | 1,179 | 21 | Other comprehensive income | 11 | 284 | 1,190 | 305 | ||||||||||||||||||
Balance at end of period | Balance at end of period | (9,676) | (10,225) | (9,676) | (10,225) | Balance at end of period | (9,665) | (9,941) | (9,665) | (9,941) | ||||||||||||||||||
Unearned ESOP Shares | Unearned ESOP Shares | Unearned ESOP Shares | ||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | (39) | (81) | (49) | (91) | Balance at beginning of period | (32) | (69) | (49) | (91) | ||||||||||||||||||
Allocation of ESOP shares | Allocation of ESOP shares | 7 | 12 | 17 | 22 | Allocation of ESOP shares | 8 | 12 | 25 | 34 | ||||||||||||||||||
Balance at end of period | Balance at end of period | (32) | (69) | (32) | (69) | Balance at end of period | (24) | (57) | (24) | (57) | ||||||||||||||||||
The Dow Chemical Company's stockholder's equity | The Dow Chemical Company's stockholder's equity | 15,943 | 13,292 | 15,943 | 13,292 | The Dow Chemical Company's stockholder's equity | 16,804 | 13,113 | 16,804 | 13,113 | ||||||||||||||||||
Noncontrolling Interests | Noncontrolling Interests | 580 | 560 | 580 | 560 | Noncontrolling Interests | 589 | 578 | 589 | 578 | ||||||||||||||||||
Total Equity | Total Equity | $ | 16,523 | $ | 13,852 | $ | 16,523 | $ | 13,852 | Total Equity | $ | 17,393 | $ | 13,691 | $ | 17,393 | $ | 13,691 |
Dow Inc. and Subsidiaries The Dow Chemical Company and Subsidiaries (Unaudited) |
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Net Trade Sales by Segment and Business | Net Trade Sales by Segment and Business | Three Months Ended | Six Months Ended | Net Trade Sales by Segment and Business | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||
Hydrocarbons & Energy | Hydrocarbons & Energy | $ | 2,008 | $ | 787 | $ | 3,759 | $ | 2,006 | Hydrocarbons & Energy | $ | 2,251 | $ | 1,021 | $ | 6,010 | $ | 3,027 | ||||||||||
Packaging and Specialty Plastics | Packaging and Specialty Plastics | 5,113 | 3,214 | 9,444 | 6,604 | Packaging and Specialty Plastics | 5,485 | 3,544 | 14,929 | 10,148 | ||||||||||||||||||
Packaging & Specialty Plastics | Packaging & Specialty Plastics | $ | 7,121 | $ | 4,001 | $ | 13,203 | $ | 8,610 | Packaging & Specialty Plastics | $ | 7,736 | $ | 4,565 | $ | 20,939 | $ | 13,175 | ||||||||||
Industrial Solutions | Industrial Solutions | $ | 1,201 | $ | 894 | $ | 2,250 | $ | 1,948 | Industrial Solutions | $ | 1,377 | $ | 931 | $ | 3,627 | $ | 2,879 | ||||||||||
Polyurethanes & Construction Chemicals | Polyurethanes & Construction Chemicals | 3,012 | 1,520 | 5,568 | 3,508 | Polyurethanes & Construction Chemicals | 3,102 | 2,124 | 8,670 | 5,632 | ||||||||||||||||||
Other | Other | 2 | 3 | 4 | 6 | Other | 2 | 3 | 6 | 9 | ||||||||||||||||||
Industrial Intermediates & Infrastructure | Industrial Intermediates & Infrastructure | $ | 4,215 | $ | 2,417 | $ | 7,822 | $ | 5,462 | Industrial Intermediates & Infrastructure | $ | 4,481 | $ | 3,058 | $ | 12,303 | $ | 8,520 | ||||||||||
Coatings & Performance Monomers | Coatings & Performance Monomers | $ | 1,010 | $ | 766 | $ | 1,865 | $ | 1,594 | Coatings & Performance Monomers | $ | 1,110 | $ | 844 | $ | 2,975 | $ | 2,438 | ||||||||||
Consumer Solutions | Consumer Solutions | 1,455 | 1,089 | 2,723 | 2,326 | Consumer Solutions | 1,416 | 1,158 | 4,139 | 3,484 | ||||||||||||||||||
Performance Materials & Coatings | Performance Materials & Coatings | $ | 2,465 | $ | 1,855 | $ | 4,588 | $ | 3,920 | Performance Materials & Coatings | $ | 2,526 | $ | 2,002 | $ | 7,114 | $ | 5,922 | ||||||||||
Corporate | Corporate | $ | 84 | $ | 81 | $ | 154 | $ | 132 | Corporate | $ | 94 | $ | 87 | $ | 248 | $ | 219 | ||||||||||
Total | Total | $ | 13,885 | $ | 8,354 | $ | 25,767 | $ | 18,124 | Total | $ | 14,837 | $ | 9,712 | $ | 40,604 | $ | 27,836 |
Net Trade Sales by Geographic Region | Net Trade Sales by Geographic Region | Three Months Ended | Six Months Ended | Net Trade Sales by Geographic Region | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||
U.S. & Canada | U.S. & Canada | $ | 4,927 | $ | 2,944 | $ | 8,955 | $ | 6,494 | U.S. & Canada | $ | 5,476 | $ | 3,391 | $ | 14,431 | $ | 9,885 | ||||||||||
EMEAI 1 | EMEAI 1 | 5,102 | 2,711 | 9,431 | 6,122 | EMEAI 1 | 5,229 | 3,272 | 14,660 | 9,394 | ||||||||||||||||||
Asia Pacific | Asia Pacific | 2,479 | 1,932 | 4,844 | 3,777 | Asia Pacific | 2,579 | 2,073 | 7,423 | 5,850 | ||||||||||||||||||
Latin America | Latin America | 1,377 | 767 | 2,537 | 1,731 | Latin America | 1,553 | 976 | 4,090 | 2,707 | ||||||||||||||||||
Total | Total | $ | 13,885 | $ | 8,354 | $ | 25,767 | $ | 18,124 | Total | $ | 14,837 | $ | 9,712 | $ | 40,604 | $ | 27,836 |
Contract Assets and Liabilities | Contract Assets and Liabilities | Balance Sheet Classification | Jun 30, 2021 | Dec 31, 2020 | Contract Assets and Liabilities | Balance Sheet Classification | Sep 30, 2021 | Dec 31, 2020 | ||||||||||||||
In millions | In millions | In millions | ||||||||||||||||||||
Accounts and notes receivable - trade | Accounts and notes receivable - trade | $ | 6,456 | $ | 4,839 | Accounts and notes receivable - trade | $ | 6,844 | $ | 4,839 | ||||||||||||
Contract assets - current | Contract assets - current | Other current assets | $ | 51 | $ | 58 | Contract assets - current | Other current assets | $ | 52 | $ | 58 | ||||||||||
Contract assets - noncurrent | Contract assets - noncurrent | Deferred charges and other assets | $ | 28 | $ | 11 | Contract assets - noncurrent | Deferred charges and other assets | $ | 39 | $ | 11 | ||||||||||
Contract liabilities - current 1 | Contract liabilities - current 1 | Accrued and other current liabilities | $ | 211 | $ | 349 | Contract liabilities - current 1 | Accrued and other current liabilities | $ | 207 | $ | 349 | ||||||||||
Contract liabilities - noncurrent | Contract liabilities - noncurrent | Other noncurrent obligations | $ | 1,970 | $ | 1,915 | Contract liabilities - noncurrent | Other noncurrent obligations | $ | 1,910 | $ | 1,915 |
2020 Restructuring Program | 2020 Restructuring Program | Severance and Related Benefit Costs | Asset Write-downs and Write-offs | Costs Associated with Exit and Disposal Activities | Total | 2020 Restructuring Program | Severance and Related Benefit Costs | Asset Write-downs and Write-offs | Costs Associated with Exit and Disposal Activities | Total | ||||||||||||||||||
In millions | In millions | In millions | ||||||||||||||||||||||||||
Packaging & Specialty Plastics | Packaging & Specialty Plastics | $ | 0 | $ | 11 | $ | 0 | $ | 11 | Packaging & Specialty Plastics | $ | — | $ | 11 | $ | — | $ | 11 | ||||||||||
Industrial Intermediates & Infrastructure | Industrial Intermediates & Infrastructure | 0 | 22 | 0 | 22 | Industrial Intermediates & Infrastructure | — | 22 | — | 22 | ||||||||||||||||||
Performance Materials & Coatings | Performance Materials & Coatings | 0 | 117 | 57 | 174 | Performance Materials & Coatings | — | 117 | 57 | 174 | ||||||||||||||||||
Corporate | Corporate | 297 | 47 | 24 | 368 | Corporate | 297 | 47 | 24 | 368 | ||||||||||||||||||
Total restructuring charges | Total restructuring charges | $ | 297 | $ | 197 | $ | 81 | $ | 575 | Total restructuring charges | $ | 297 | $ | 197 | $ | 81 | $ | 575 | ||||||||||
Charges against the reserve | Charges against the reserve | 0 | (197) | 0 | (197) | Charges against the reserve | — | (197) | — | (197) | ||||||||||||||||||
Cash payments | Cash payments | (1) | 0 | 0 | (1) | Cash payments | (1) | — | — | (1) | ||||||||||||||||||
Reserve balance at Sep 30, 2020 | Reserve balance at Sep 30, 2020 | $ | 296 | $ | 0 | $ | 81 | $ | 377 | Reserve balance at Sep 30, 2020 | $ | 296 | $ | — | $ | 81 | $ | 377 | ||||||||||
Performance Materials & Coatings | Performance Materials & Coatings | $ | 0 | $ | (1) | $ | 4 | $ | 3 | Performance Materials & Coatings | $ | — | $ | (1) | $ | 4 | $ | 3 | ||||||||||
Corporate | Corporate | 0 | 0 | (5) | (5) | Corporate | — | — | (5) | (5) | ||||||||||||||||||
Total restructuring charges | Total restructuring charges | $ | 0 | $ | (1) | $ | (1) | $ | (2) | Total restructuring charges | $ | — | $ | (1) | $ | (1) | $ | (2) | ||||||||||
Charges against the reserve | Charges against the reserve | 0 | 1 | (5) | (4) | Charges against the reserve | — | 1 | (5) | (4) | ||||||||||||||||||
Cash payments | Cash payments | (7) | 0 | 0 | (7) | Cash payments | (7) | — | — | (7) | ||||||||||||||||||
Reserve balance at Dec 31, 2020 | Reserve balance at Dec 31, 2020 | $ | 289 | $ | 0 | $ | 75 | $ | 364 | Reserve balance at Dec 31, 2020 | $ | 289 | $ | — | $ | 75 | $ | 364 | ||||||||||
Cash payments | Cash payments | (37) | 0 | (12) | (49) | Cash payments | (37) | — | (12) | (49) | ||||||||||||||||||
Reserve balance at Mar 31, 2021 | Reserve balance at Mar 31, 2021 | $ | 252 | $ | 0 | $ | 63 | $ | 315 | Reserve balance at Mar 31, 2021 | $ | 252 | $ | — | $ | 63 | $ | 315 | ||||||||||
Packaging & Specialty Plastics | Packaging & Specialty Plastics | $ | 0 | $ | 0 | $ | 8 | $ | 8 | Packaging & Specialty Plastics | $ | — | $ | — | $ | 8 | $ | 8 | ||||||||||
Industrial Intermediates & Infrastructure | Industrial Intermediates & Infrastructure | 0 | 1 | 0 | 1 | Industrial Intermediates & Infrastructure | — | 1 | — | 1 | ||||||||||||||||||
Performance Materials & Coatings | Performance Materials & Coatings | 0 | 8 | 2 | 10 | Performance Materials & Coatings | — | 8 | 2 | 10 | ||||||||||||||||||
Corporate | Corporate | 0 | 3 | 0 | 3 | Corporate | — | 3 | — | 3 | ||||||||||||||||||
Total restructuring charges | Total restructuring charges | $ | 0 | $ | 12 | $ | 10 | $ | 22 | Total restructuring charges | $ | — | $ | 12 | $ | 10 | $ | 22 | ||||||||||
Charges against the reserve | Charges against the reserve | 0 | (12) | 0 | (12) | Charges against the reserve | — | (12) | — | (12) | ||||||||||||||||||
Cash payments | Cash payments | (53) | 0 | (3) | (56) | Cash payments | (53) | — | (3) | (56) | ||||||||||||||||||
Reserve balance at Jun 30, 2021 | Reserve balance at Jun 30, 2021 | $ | 199 | $ | 0 | $ | 70 | $ | 269 | Reserve balance at Jun 30, 2021 | $ | 199 | $ | — | $ | 70 | $ | 269 | ||||||||||
Cash payments | Cash payments | (55) | — | (2) | (57) | |||||||||||||||||||||||
Reserve balance at Sep 30, 2021 | Reserve balance at Sep 30, 2021 | $ | 144 | $ | — | $ | 68 | $ | 212 |
Dow Inc. Sundry Income (Expense) – Net | Dow Inc. Sundry Income (Expense) – Net | Three Months Ended | Six Months Ended | Dow Inc. Sundry Income (Expense) – Net | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||
Non-operating pension and other postretirement benefit plan net credits 1 | Non-operating pension and other postretirement benefit plan net credits 1 | $ | 86 | $ | 27 | $ | 161 | $ | 54 | Non-operating pension and other postretirement benefit plan net credits 1 | $ | 86 | $ | 26 | $ | 247 | $ | 81 | ||||||||||
Foreign exchange losses | Foreign exchange losses | (8) | (2) | (16) | (18) | Foreign exchange losses | (5) | (24) | (21) | (42) | ||||||||||||||||||
Gain on divestiture of rail infrastructure 2 | Gain on divestiture of rail infrastructure 2 | — | 233 | — | 233 | |||||||||||||||||||||||
Loss on early extinguishment of debt 3 | Loss on early extinguishment of debt 3 | (472) | (63) | (574) | (149) | |||||||||||||||||||||||
Loss on divestitures 4 | Loss on divestitures 4 | — | (13) | — | (13) | |||||||||||||||||||||||
Gains on sales of other assets and investments | Gains on sales of other assets and investments | 12 | 2 | 74 | 7 | |||||||||||||||||||||||
Indemnification and other transaction related costs 5 | Indemnification and other transaction related costs 5 | — | — | (5) | — | |||||||||||||||||||||||
Gain related to Nova ethylene asset matter 6 | Gain related to Nova ethylene asset matter 6 | — | — | — | 6 | |||||||||||||||||||||||
Dow Silicones breast implant liability adjustment 6 | Dow Silicones breast implant liability adjustment 6 | — | — | — | 5 | |||||||||||||||||||||||
Loss on early extinguishment of debt 2 | (102) | 0 | (102) | (86) | ||||||||||||||||||||||||
Gains (losses) on sales of other assets and investments | 14 | (4) | 62 | 5 | ||||||||||||||||||||||||
Indemnification and other transaction related costs 3 | (5) | 0 | (5) | 0 | ||||||||||||||||||||||||
Gain related to Nova ethylene asset matter 4 | 0 | 6 | 0 | 6 | ||||||||||||||||||||||||
Luxi arbitration award 6 | Luxi arbitration award 6 | 54 | — | 54 | — | |||||||||||||||||||||||
Other - net | Other - net | 12 | 26 | 25 | 11 | Other - net | (25) | 21 | — | 26 | ||||||||||||||||||
Total sundry income (expense) – net | Total sundry income (expense) – net | $ | (3) | $ | 53 | $ | 125 | $ | (28) | Total sundry income (expense) – net | $ | (350) | $ | 182 | $ | (225) | $ | 154 |
TDCC Sundry Income (Expense) – Net | TDCC Sundry Income (Expense) – Net | Three Months Ended | Six Months Ended | TDCC Sundry Income (Expense) – Net | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||
Non-operating pension and other postretirement benefit plan net credits 1 | Non-operating pension and other postretirement benefit plan net credits 1 | $ | 86 | $ | 27 | $ | 161 | $ | 54 | Non-operating pension and other postretirement benefit plan net credits 1 | $ | 86 | $ | 26 | $ | 247 | $ | 81 | ||||||||||
Foreign exchange losses | Foreign exchange losses | (4) | (6) | (16) | (23) | Foreign exchange losses | (8) | (22) | (24) | (45) | ||||||||||||||||||
Gain on divestiture of rail infrastructure 2 | Gain on divestiture of rail infrastructure 2 | — | 233 | — | 233 | |||||||||||||||||||||||
Loss on early extinguishment of debt 3 | Loss on early extinguishment of debt 3 | (472) | (63) | (574) | (149) | |||||||||||||||||||||||
Loss on divestitures 4 | Loss on divestitures 4 | — | (13) | — | (13) | |||||||||||||||||||||||
Gains on sales of other assets and investments | Gains on sales of other assets and investments | 12 | 2 | 74 | 7 | |||||||||||||||||||||||
Gain related to Nova ethylene asset matter 5 | Gain related to Nova ethylene asset matter 5 | — | — | — | 6 | |||||||||||||||||||||||
Dow Silicones breast implant liability adjustment 5 | Dow Silicones breast implant liability adjustment 5 | — | — | — | 5 | |||||||||||||||||||||||
Loss on early extinguishment of debt 2 | (102) | 0 | (102) | (86) | ||||||||||||||||||||||||
Gains (losses) on sales of other assets and investments | 14 | (4) | 62 | 5 | ||||||||||||||||||||||||
Gain related to Nova ethylene asset matter 3 | 0 | 6 | 0 | 6 | ||||||||||||||||||||||||
Luxi arbitration award 5 | Luxi arbitration award 5 | 54 | — | 54 | — | |||||||||||||||||||||||
Other - net | Other - net | 12 | 28 | 20 | 13 | Other - net | (28) | 18 | (8) | 25 | ||||||||||||||||||
Total sundry income (expense) – net | Total sundry income (expense) – net | $ | 6 | $ | 51 | $ | 125 | $ | (31) | Total sundry income (expense) – net | $ | (356) | $ | 181 | $ | (231) | $ | 150 |
Net Income (Loss) for Earnings Per Share Calculations | Net Income (Loss) for Earnings Per Share Calculations | Three Months Ended | Six Months Ended | Net Income (Loss) for Earnings Per Share Calculations | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
In millions | In millions | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | |||||||||||||||||||
In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | |||||||||||||||||||||||||
Net income (loss) | Net income (loss) | $ | 1,932 | $ | (217) | $ | 2,938 | $ | 41 | Net income (loss) | $ | 1,706 | $ | (1) | $ | 4,644 | $ | 40 | |||||||||||
Net income attributable to noncontrolling interests | Net income attributable to noncontrolling interests | 31 | 8 | 46 | 27 | Net income attributable to noncontrolling interests | 23 | 24 | 69 | 51 | |||||||||||||||||||
Net income attributable to participating securities 1 | Net income attributable to participating securities 1 | 10 | 2 | 15 | 4 | Net income attributable to participating securities 1 | 8 | 3 | 23 | 7 | |||||||||||||||||||
Net income (loss) attributable to common stockholders | Net income (loss) attributable to common stockholders | $ | 1,891 | $ | (227) | $ | 2,877 | $ | 10 | Net income (loss) attributable to common stockholders | $ | 1,675 | $ | (28) | $ | 4,552 | $ | (18) |
Earnings (Loss) Per Share - Basic and Diluted | Earnings (Loss) Per Share - Basic and Diluted | Three Months Ended | Six Months Ended | Earnings (Loss) Per Share - Basic and Diluted | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
Dollars per share | Dollars per share | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | Dollars per share | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | |||||||||||||||||||
Dollars per share | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | |||||||||||||||||||||||||
Earnings (loss) per common share - basic | Earnings (loss) per common share - basic | $ | 2.53 | $ | (0.31) | $ | 3.86 | $ | 0.01 | Earnings (loss) per common share - basic | $ | 2.25 | $ | (0.04) | $ | 6.11 | $ | (0.02) | |||||||||||
Earnings (loss) per common share - diluted | Earnings (loss) per common share - diluted | $ | 2.51 | $ | (0.31) | $ | 3.83 | $ | 0.01 | Earnings (loss) per common share - diluted | $ | 2.23 | $ | (0.04) | $ | 6.06 | $ | (0.02) |
Share Count Information | Share Count Information | Three Months Ended | Six Months Ended | Share Count Information | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
Shares in millions | Shares in millions | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | Shares in millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | |||||||||||||||||||
Shares in millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | |||||||||||||||||||||||||
Weighted-average common shares outstanding - basic | Weighted-average common shares outstanding - basic | 747.0 | 739.3 | 745.9 | 739.7 | Weighted-average common shares outstanding - basic | 744.5 | 740.5 | 745.4 | 740.0 | |||||||||||||||||||
Plus dilutive effect of equity compensation plans 2 | Plus dilutive effect of equity compensation plans 2 | 5.9 | 0 | 5.5 | 1.3 | Plus dilutive effect of equity compensation plans 2 | 5.5 | — | 5.5 | — | |||||||||||||||||||
Weighted-average common shares outstanding - diluted 2 | Weighted-average common shares outstanding - diluted 2 | 752.9 | 739.3 | 751.4 | 741.0 | Weighted-average common shares outstanding - diluted 2 | 750.0 | 740.5 | 750.9 | 740.0 | |||||||||||||||||||
Stock options and restricted stock units excluded from EPS calculations 3 | Stock options and restricted stock units excluded from EPS calculations 3 | 3.8 | 27.7 | 4.8 | 17.3 | Stock options and restricted stock units excluded from EPS calculations 3 | 7.2 | 26.9 | 5.6 | 27.1 |
Inventories | Inventories | Jun 30, 2021 | Dec 31, 2020 | Inventories | Sep 30, 2021 | Dec 31, 2020 | ||||||||||
In millions | In millions | In millions | ||||||||||||||
Finished goods | Finished goods | $ | 4,144 | $ | 3,140 | Finished goods | $ | 4,233 | $ | 3,140 | ||||||
Work in process | Work in process | 1,414 | 996 | Work in process | 1,561 | 996 | ||||||||||
Raw materials | Raw materials | 711 | 598 | Raw materials | 867 | 598 | ||||||||||
Supplies | Supplies | 946 | 933 | Supplies | 875 | 933 | ||||||||||
Total | Total | $ | 7,215 | $ | 5,667 | Total | $ | 7,536 | $ | 5,667 | ||||||
Adjustment of inventories to a LIFO basis | Adjustment of inventories to a LIFO basis | (263) | 34 | Adjustment of inventories to a LIFO basis | (425) | 34 | ||||||||||
Total inventories | Total inventories | $ | 6,952 | $ | 5,701 | Total inventories | $ | 7,111 | $ | 5,701 |
Investments in Nonconsolidated Affiliates | Investments in Nonconsolidated Affiliates | Jun 30, 2021 | Dec 31, 2020 | Investments in Nonconsolidated Affiliates | Sep 30, 2021 | Dec 31, 2020 | ||||||||||
In millions | In millions | In millions | ||||||||||||||
Investment in nonconsolidated affiliates | Investment in nonconsolidated affiliates | $ | 1,754 | $ | 1,327 | Investment in nonconsolidated affiliates | $ | 1,910 | $ | 1,327 | ||||||
Other noncurrent obligations | Other noncurrent obligations | (60) | (169) | Other noncurrent obligations | — | (169) | ||||||||||
Net investment in nonconsolidated affiliates | Net investment in nonconsolidated affiliates | $ | 1,694 | $ | 1,158 | Net investment in nonconsolidated affiliates | $ | 1,910 | $ | 1,158 |
Dividends Received from Nonconsolidated Affiliates | Dividends Received from Nonconsolidated Affiliates | Six Months Ended | Dividends Received from Nonconsolidated Affiliates | Nine Months Ended | ||||||||||||
In millions | In millions | Jun 30, 2021 | Jun 30, 2020 | In millions | Sep 30, 2021 | Sep 30, 2020 | ||||||||||
Dividends from nonconsolidated affiliates 1 | Dividends from nonconsolidated affiliates 1 | $ | 219 | $ | 380 | Dividends from nonconsolidated affiliates 1 | $ | 232 | $ | 391 |
Goodwill | Goodwill | Packaging & Specialty Plastics | Industrial Intermediates & Infrastructure | Performance Materials & Coatings | Total | Goodwill | Packaging & Specialty Plastics | Industrial Intermediates & Infrastructure | Performance Materials & Coatings | Total | ||||||||||||||||||
In millions | In millions | In millions | ||||||||||||||||||||||||||
Net goodwill at Dec 31, 2020 | Net goodwill at Dec 31, 2020 | $ | 5,115 | $ | 1,100 | $ | 2,693 | $ | 8,908 | Net goodwill at Dec 31, 2020 | $ | 5,115 | $ | 1,100 | $ | 2,693 | $ | 8,908 | ||||||||||
Foreign currency impact | Foreign currency impact | (4) | (2) | (69) | (75) | Foreign currency impact | (7) | (3) | (97) | (107) | ||||||||||||||||||
Net goodwill at Jun 30, 2021 | $ | 5,111 | $ | 1,098 | $ | 2,624 | $ | 8,833 | ||||||||||||||||||||
Net goodwill at Sep 30, 2021 | Net goodwill at Sep 30, 2021 | $ | 5,108 | $ | 1,097 | $ | 2,596 | $ | 8,801 |
Other Intangible Assets | Other Intangible Assets | Jun 30, 2021 | Dec 31, 2020 | Other Intangible Assets | Sep 30, 2021 | Dec 31, 2020 | ||||||||||||||||||||||||||||||||||
In millions | In millions | Gross Carrying Amount | Accum Amort | Net | Gross Carrying Amount | Accum Amort | Net | In millions | Gross Carrying Amount | Accum Amort | Net | Gross Carrying Amount | Accum Amort | Net | ||||||||||||||||||||||||||
Intangible assets with finite lives: | Intangible assets with finite lives: | Intangible assets with finite lives: | ||||||||||||||||||||||||||||||||||||||
Developed technology | Developed technology | $ | 2,638 | $ | (1,780) | $ | 858 | $ | 2,638 | $ | (1,677) | $ | 961 | Developed technology | $ | 2,637 | $ | (1,833) | $ | 804 | $ | 2,638 | $ | (1,677) | $ | 961 | ||||||||||||||
Software | Software | 1,500 | (1,030) | 470 | 1,489 | (989) | 500 | Software | 1,494 | (1,042) | 452 | 1,489 | (989) | 500 | ||||||||||||||||||||||||||
Trademarks/tradenames | Trademarks/tradenames | 352 | (344) | 8 | 352 | (343) | 9 | Trademarks/tradenames | 352 | (344) | 8 | 352 | (343) | 9 | ||||||||||||||||||||||||||
Customer-related | Customer-related | 3,253 | (1,496) | 1,757 | 3,301 | (1,419) | 1,882 | Customer-related | 3,226 | (1,528) | 1,698 | 3,301 | (1,419) | 1,882 | ||||||||||||||||||||||||||
Total other intangible assets | Total other intangible assets | $ | 7,743 | $ | (4,650) | $ | 3,093 | $ | 7,780 | $ | (4,428) | $ | 3,352 | Total other intangible assets | $ | 7,709 | $ | (4,747) | $ | 2,962 | $ | 7,780 | $ | (4,428) | $ | 3,352 |
Amortization Expense | Amortization Expense | Three Months Ended | Six Months Ended | Amortization Expense | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||
Other intangible assets, excluding software | Other intangible assets, excluding software | $ | 100 | $ | 100 | $ | 201 | $ | 200 | Other intangible assets, excluding software | $ | 100 | $ | 100 | $ | 301 | $ | 300 | ||||||||||
Software, included in “Cost of sales” | Software, included in “Cost of sales” | $ | 23 | $ | 24 | $ | 45 | $ | 48 | Software, included in “Cost of sales” | $ | 22 | $ | 24 | $ | 67 | $ | 72 |
Estimated Amortization Expense | Estimated Amortization Expense | Estimated Amortization Expense | In millions | |||||||
2021 | 2021 | $ | 477 | 2021 | $ | 475 | ||||
2022 | 2022 | $ | 414 | 2022 | $ | 410 | ||||
2023 | 2023 | $ | 381 | 2023 | $ | 377 | ||||
2024 | 2024 | $ | 362 | 2024 | $ | 359 | ||||
2025 | 2025 | $ | 270 | 2025 | $ | 268 | ||||
2026 | 2026 | $ | 198 | 2026 | $ | 194 |
Notes Payable | Notes Payable | Jun 30, 2021 | Dec 31, 2020 | Notes Payable | Sep 30, 2021 | Dec 31, 2020 | ||||||||||
In millions | In millions | In millions | ||||||||||||||
Notes payable to banks and other lenders | Notes payable to banks and other lenders | $ | 203 | $ | 156 | Notes payable to banks and other lenders | $ | 270 | $ | 156 | ||||||
Period-end average interest rates | Period-end average interest rates | 5.76 | % | 3.89 | % | Period-end average interest rates | 6.38 | % | 3.89 | % |
Long-Term Debt | Long-Term Debt | 2021 Average Rate | Jun 30, 2021 | 2020 Average Rate | Dec 31, 2020 | Long-Term Debt | 2021 Average Rate | Sep 30, 2021 | 2020 Average Rate | Dec 31, 2020 | In millions | |||||||||||||||||
Promissory notes and debentures: | Promissory notes and debentures: | Promissory notes and debentures: | ||||||||||||||||||||||||||
Final maturity 2021 | Final maturity 2021 | 8.85 | % | $ | 53 | 8.95 | % | $ | 173 | Final maturity 2021 | — | % | $ | — | 8.95 | % | $ | 173 | ||||||||||
Final maturity 2022 | Final maturity 2022 | 8.64 | % | 121 | 8.64 | % | 121 | Final maturity 2022 | 8.64 | % | 121 | 8.64 | % | 121 | ||||||||||||||
Final maturity 2023 | Final maturity 2023 | 7.63 | % | 250 | 7.63 | % | 250 | Final maturity 2023 | 7.63 | % | 250 | 7.63 | % | 250 | ||||||||||||||
Final maturity 2024 | Final maturity 2024 | 0 | % | 0 | 3.43 | % | 1,017 | Final maturity 2024 | — | % | — | 3.43 | % | 1,017 | ||||||||||||||
Final maturity 2025 | Final maturity 2025 | 5.13 | % | 625 | 5.13 | % | 625 | Final maturity 2025 | 5.63 | % | 333 | 5.13 | % | 625 | ||||||||||||||
Final maturity 2026 | Final maturity 2026 | 3.63 | % | 750 | 3.63 | % | 750 | Final maturity 2026 | 3.63 | % | 750 | 3.63 | % | 750 | ||||||||||||||
Final maturity 2027 and thereafter 1 | Final maturity 2027 and thereafter 1 | 5.34 | % | 10,112 | 5.34 | % | 10,138 | Final maturity 2027 and thereafter 1 | 5.15 | % | 9,364 | 5.34 | % | 10,138 | ||||||||||||||
Other facilities: | Other facilities: | Other facilities: | ||||||||||||||||||||||||||
Foreign currency notes and loans, various rates and maturities | Foreign currency notes and loans, various rates and maturities | 1.20 | % | 3,043 | 1.41 | % | 3,189 | Foreign currency notes and loans, various rates and maturities | 1.22 | % | 2,889 | 1.41 | % | 3,189 | ||||||||||||||
InterNotes®, varying maturities through 2051 | InterNotes®, varying maturities through 2051 | 3.48 | % | 378 | 3.56 | % | 535 | InterNotes®, varying maturities through 2051 | 3.40 | % | 382 | 3.56 | % | 535 | ||||||||||||||
Finance lease obligations 2 | Finance lease obligations 2 | 553 | 518 | Finance lease obligations 2 | 542 | 518 | ||||||||||||||||||||||
Unamortized debt discount and issuance costs | Unamortized debt discount and issuance costs | (347) | (365) | Unamortized debt discount and issuance costs | (313) | (365) | ||||||||||||||||||||||
Long-term debt due within one year 3 | Long-term debt due within one year 3 | (445) | (460) | Long-term debt due within one year 3 | (291) | (460) | ||||||||||||||||||||||
Long-term debt | Long-term debt | $ | 15,093 | $ | 16,491 | Long-term debt | $ | 14,027 | $ | 16,491 |
Maturities of Long-Term Debt for Next Five Years at Jun 30, 2021 | ||||||||||
Maturities of Long-Term Debt for Next Five Years at Sep 30, 2021 | Maturities of Long-Term Debt for Next Five Years at Sep 30, 2021 | In millions | ||||||||
2021 | 2021 | $ | 291 | 2021 | $ | 122 | ||||
2022 | 2022 | $ | 189 | 2022 | $ | 191 | ||||
2023 | 2023 | $ | 344 | 2023 | $ | 345 | ||||
2024 | 2024 | $ | 39 | 2024 | $ | 41 | ||||
2025 | 2025 | $ | 655 | 2025 | $ | 364 | ||||
2026 | 2026 | $ | 793 | 2026 | $ | 801 |
Committed and Available Credit Facilities at Jun 30, 2021 | ||||||||||||||||||||||||||||
Committed and Available Credit Facilities at Sep 30, 2021 | Committed and Available Credit Facilities at Sep 30, 2021 | |||||||||||||||||||||||||||
In millions | In millions | Committed Credit | Available Credit | Maturity Date | Interest | In millions | Committed Credit | Available Credit | Maturity Date | Interest | ||||||||||||||||||
Five Year Competitive Advance and Revolving Credit Facility | Five Year Competitive Advance and Revolving Credit Facility | $ | 5,000 | $ | 5,000 | October 2024 | Floating rate | Five Year Competitive Advance and Revolving Credit Facility | $ | 5,000 | $ | 5,000 | October 2024 | Floating rate | ||||||||||||||
Bilateral Revolving Credit Facility | Bilateral Revolving Credit Facility | 300 | 300 | December 2021 | Floating rate | Bilateral Revolving Credit Facility | 300 | 300 | December 2021 | Floating rate | ||||||||||||||||||
Bilateral Revolving Credit Facility | Bilateral Revolving Credit Facility | 300 | 300 | December 2021 | Floating rate | Bilateral Revolving Credit Facility | 300 | 300 | December 2021 | Floating rate | ||||||||||||||||||
Bilateral Revolving Credit Facility | Bilateral Revolving Credit Facility | 150 | 150 | March 2022 | Floating rate | Bilateral Revolving Credit Facility | 150 | 150 | March 2022 | Floating rate | ||||||||||||||||||
Bilateral Revolving Credit Facility | Bilateral Revolving Credit Facility | 100 | 100 | June 2022 | Floating rate | Bilateral Revolving Credit Facility | 100 | 100 | June 2022 | Floating rate | ||||||||||||||||||
Bilateral Revolving Credit Facility | Bilateral Revolving Credit Facility | 200 | 200 | September 2022 | Floating rate | Bilateral Revolving Credit Facility | 200 | 200 | September 2022 | Floating rate | ||||||||||||||||||
Bilateral Revolving Credit Facility 1 | Bilateral Revolving Credit Facility 1 | 200 | 200 | November 2022 | Floating rate | Bilateral Revolving Credit Facility 1 | 200 | 200 | November 2022 | Floating rate | ||||||||||||||||||
Bilateral Revolving Credit Facility | Bilateral Revolving Credit Facility | 200 | 200 | September 2023 | Floating rate | Bilateral Revolving Credit Facility | 200 | 200 | September 2023 | Floating rate | ||||||||||||||||||
Bilateral Revolving Credit Facility | Bilateral Revolving Credit Facility | 250 | 250 | September 2023 | Floating rate | Bilateral Revolving Credit Facility | 250 | 250 | September 2023 | Floating rate | ||||||||||||||||||
Bilateral Revolving Credit Facility | Bilateral Revolving Credit Facility | 300 | 300 | September 2023 | Floating rate | Bilateral Revolving Credit Facility | 300 | 300 | September 2023 | Floating rate | ||||||||||||||||||
Bilateral Revolving Credit Facility | Bilateral Revolving Credit Facility | 100 | 100 | October 2024 | Floating rate | Bilateral Revolving Credit Facility | 100 | 100 | October 2024 | Floating rate | ||||||||||||||||||
Bilateral Revolving Credit Facility | Bilateral Revolving Credit Facility | 100 | 100 | October 2024 | Floating rate | Bilateral Revolving Credit Facility | 100 | 100 | October 2024 | Floating rate | ||||||||||||||||||
Bilateral Revolving Credit Facility | Bilateral Revolving Credit Facility | 200 | 200 | November 2024 | Floating rate | Bilateral Revolving Credit Facility | 200 | 200 | November 2024 | Floating rate | ||||||||||||||||||
Bilateral Revolving Credit Facility | Bilateral Revolving Credit Facility | 100 | 100 | March 2025 | Floating rate | Bilateral Revolving Credit Facility | 100 | 100 | March 2025 | Floating rate | ||||||||||||||||||
Bilateral Revolving Credit Facility | Bilateral Revolving Credit Facility | 250 | 250 | March 2025 | Floating rate | Bilateral Revolving Credit Facility | 250 | 250 | March 2025 | Floating rate | ||||||||||||||||||
Bilateral Revolving Credit Facility | Bilateral Revolving Credit Facility | 350 | 350 | March 2025 | Floating rate | Bilateral Revolving Credit Facility | 350 | 350 | March 2025 | Floating rate | ||||||||||||||||||
Total committed and available credit facilities | Total committed and available credit facilities | $ | 8,100 | $ | 8,100 | Total committed and available credit facilities | $ | 8,100 | $ | 8,100 |
Guarantees | Guarantees | Jun 30, 2021 | Dec 31, 2020 | Guarantees | Sep 30, 2021 | Dec 31, 2020 | ||||||||||||||||||||||||||||||||||
In millions | In millions | Final Expiration | Maximum Future Payments 1 | Recorded Liability | Final Expiration | Maximum Future Payments | Recorded Liability | In millions | Final Expiration | Maximum Future Payments 1 | Recorded Liability | Final Expiration | Maximum Future Payments | Recorded Liability | ||||||||||||||||||||||||||
Guarantees | Guarantees | 2038 | $ | 1,314 | $ | 231 | 2023 | $ | 251 | $ | 2 | Guarantees | 2038 | $ | 1,312 | $ | 225 | 2023 | $ | 251 | $ | 2 |
Lease Cost | Lease Cost | Three Months Ended | Six Months Ended | Lease Cost | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||
Operating lease cost | Operating lease cost | $ | 118 | $ | 120 | $ | 239 | $ | 240 | Operating lease cost | $ | 123 | $ | 122 | $ | 362 | $ | 362 | ||||||||||
Finance lease cost | Finance lease cost | Finance lease cost | ||||||||||||||||||||||||||
Amortization of right-of-use assets - finance | Amortization of right-of-use assets - finance | $ | 19 | $ | 13 | $ | 34 | $ | 26 | Amortization of right-of-use assets - finance | $ | 19 | $ | 16 | $ | 53 | $ | 42 | ||||||||||
Interest on lease liabilities - finance | Interest on lease liabilities - finance | 6 | 6 | 13 | 12 | Interest on lease liabilities - finance | 6 | 7 | 19 | 19 | ||||||||||||||||||
Total finance lease cost | Total finance lease cost | $ | 25 | $ | 19 | $ | 47 | $ | 38 | Total finance lease cost | $ | 25 | $ | 23 | $ | 72 | $ | 61 | ||||||||||
Short-term lease cost | Short-term lease cost | 71 | 53 | 120 | 107 | Short-term lease cost | 57 | 54 | 177 | 161 | ||||||||||||||||||
Variable lease cost | Variable lease cost | 79 | 48 | 150 | 112 | Variable lease cost | 78 | 45 | 228 | 157 | ||||||||||||||||||
Sublease income | Sublease income | (1) | (1) | (3) | (2) | Sublease income | (2) | (2) | (5) | (4) | ||||||||||||||||||
Total lease cost | Total lease cost | $ | 292 | $ | 239 | $ | 553 | $ | 495 | Total lease cost | $ | 281 | $ | 242 | $ | 834 | $ | 737 |
Other Lease Information | Nine Months Ended | |||||||
In millions | Sep 30, 2021 | Sep 30, 2020 | ||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
Operating cash flows for operating leases | $ | 364 | $ | 357 | ||||
Operating cash flows for finance leases | $ | 19 | $ | 19 | ||||
Financing cash flows for finance leases | $ | 48 | $ | 34 | ||||
Right-of-use assets obtained in exchange for lease obligations: | ||||||||
Operating leases | $ | 133 | $ | 68 | ||||
Finance leases | $ | 73 | $ | 142 |
Other Lease Information | Six Months Ended | |||||||
In millions | Jun 30, 2021 | Jun 30, 2020 | ||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
Operating cash flows for operating leases | $ | 245 | $ | 240 | ||||
Operating cash flows for finance leases | $ | 13 | $ | 12 | ||||
Financing cash flows for finance leases | $ | 29 | $ | 21 |
Lease Position | Lease Position | Balance Sheet Classification | Jun 30, 2021 | Dec 31, 2020 | Lease Position | Balance Sheet Classification | Sep 30, 2021 | Dec 31, 2020 | ||||||||||||||
In millions | In millions | In millions | ||||||||||||||||||||
Right-of-use assets obtained in exchange for lease obligations: | ||||||||||||||||||||||
Operating leases | $ | 57 | $ | 185 | ||||||||||||||||||
Finance leases | $ | 72 | $ | 178 | ||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||
Operating lease assets | Operating lease assets | Operating lease right-of-use assets | $ | 1,745 | $ | 1,856 | Operating lease assets | Operating lease right-of-use assets | $ | 1,727 | $ | 1,856 | ||||||||||
Finance lease assets | Finance lease assets | Property | 727 | 665 | Finance lease assets | Property | 726 | 665 | ||||||||||||||
Finance lease amortization | Finance lease amortization | Accumulated depreciation | (246) | (216) | Finance lease amortization | Accumulated depreciation | (263) | (216) | ||||||||||||||
Total lease assets | Total lease assets | $ | 2,226 | $ | 2,305 | Total lease assets | $ | 2,190 | $ | 2,305 | ||||||||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||||||||
Current | Current | Current | ||||||||||||||||||||
Operating | Operating | Operating lease liabilities - current | $ | 402 | $ | 416 | Operating | Operating lease liabilities - current | $ | 413 | $ | 416 | ||||||||||
Finance | Finance | Long-term debt due within one year | 67 | 54 | Finance | Long-term debt due within one year | 68 | 54 | ||||||||||||||
Noncurrent | Noncurrent | Noncurrent | ||||||||||||||||||||
Operating | Operating | Operating lease liabilities - noncurrent | 1,419 | 1,521 | Operating | Operating lease liabilities - noncurrent | 1,428 | 1,521 | ||||||||||||||
Finance | Finance | Long-Term Debt | 486 | 464 | Finance | Long-Term Debt | 474 | 464 | ||||||||||||||
Total lease liabilities | Total lease liabilities | $ | 2,374 | $ | 2,455 | Total lease liabilities | $ | 2,383 | $ | 2,455 |
Lease Term and Discount Rate | Lease Term and Discount Rate | Jun 30, 2021 | Dec 31, 2020 | Lease Term and Discount Rate | Sep 30, 2021 | Dec 31, 2020 | ||||||||||
Weighted-average remaining lease term | Weighted-average remaining lease term | Weighted-average remaining lease term | ||||||||||||||
Operating leases | Operating leases | 7.4 years | 7.6 years | Operating leases | 7.2 years | 7.6 years | ||||||||||
Finance leases | Finance leases | 10.6 years | 11.6 years | Finance leases | 10.3 years | 11.6 years | ||||||||||
Weighted-average discount rate | Weighted-average discount rate | Weighted-average discount rate | ||||||||||||||
Operating leases | Operating leases | 3.77 | % | 3.84 | % | Operating leases | 3.63 | % | 3.84 | % | ||||||
Finance leases | Finance leases | 5.09 | % | 5.41 | % | Finance leases | 5.04 | % | 5.41 | % |
Maturities of Lease Liabilities | Maturities of Lease Liabilities | Jun 30, 2021 | Maturities of Lease Liabilities | Sep 30, 2021 | ||||||||||||
In millions | In millions | Operating Leases | Finance Leases | In millions | Operating Leases | Finance Leases | ||||||||||
2021 | 2021 | $ | 247 | $ | 47 | 2021 | $ | 140 | $ | 29 | ||||||
2022 | 2022 | 408 | 88 | 2022 | 434 | 89 | ||||||||||
2023 | 2023 | 330 | 112 | 2023 | 351 | 113 | ||||||||||
2024 | 2024 | 257 | 57 | 2024 | 273 | 58 | ||||||||||
2025 | 2025 | 177 | 46 | 2025 | 201 | 47 | ||||||||||
2026 and thereafter | 2026 and thereafter | 716 | 380 | 2026 and thereafter | 744 | 375 | ||||||||||
Total future undiscounted lease payments | Total future undiscounted lease payments | $ | 2,135 | $ | 730 | Total future undiscounted lease payments | $ | 2,143 | $ | 711 | ||||||
Less: Imputed interest | Less: Imputed interest | 314 | 177 | Less: Imputed interest | 302 | 169 | ||||||||||
Total present value of lease liabilities | Total present value of lease liabilities | $ | 1,821 | $ | 553 | Total present value of lease liabilities | $ | 1,841 | $ | 542 |
Lease Guarantees | Lease Guarantees | Jun 30, 2021 | Dec 31, 2020 | Lease Guarantees | Sep 30, 2021 | Dec 31, 2020 | ||||||||||||||||||||||||||||||||||
In millions | In millions | Final Expiration | Maximum Future Payments | Recorded Liability | Final Expiration | Maximum Future Payments | Recorded Liability | In millions | Final Expiration | Maximum Future Payments | Recorded Liability | Final Expiration | Maximum Future Payments | Recorded Liability | ||||||||||||||||||||||||||
Residual value guarantees | Residual value guarantees | 2031 | $ | 809 | $ | 19 | 2030 | $ | 818 | $ | 22 | Residual value guarantees | 2031 | $ | 805 | $ | 56 | 2030 | $ | 818 | $ | 22 |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | Three Months Ended | Six Months Ended | Accumulated Other Comprehensive Loss | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||
Unrealized Gains (Losses) on Investments | Unrealized Gains (Losses) on Investments | Unrealized Gains (Losses) on Investments | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 55 | $ | (36) | $ | 104 | $ | 64 | Beginning balance | $ | 72 | $ | 40 | $ | 104 | $ | 64 | ||||||||||
Unrealized gains (losses) on investments | Unrealized gains (losses) on investments | 39 | 122 | (15) | 4 | Unrealized gains (losses) on investments | (10) | 35 | (25) | 39 | ||||||||||||||||||
Tax (expense) benefit | Tax (expense) benefit | (9) | (27) | 2 | (2) | Tax (expense) benefit | 3 | (8) | 5 | (10) | ||||||||||||||||||
Net unrealized gains (losses) on investments | Net unrealized gains (losses) on investments | 30 | 95 | (13) | 2 | Net unrealized gains (losses) on investments | (7) | 27 | (20) | 29 | ||||||||||||||||||
(Gains) losses reclassified from AOCL to net income 1 | (Gains) losses reclassified from AOCL to net income 1 | (17) | (25) | (25) | (34) | (Gains) losses reclassified from AOCL to net income 1 | (8) | (25) | (33) | (59) | ||||||||||||||||||
Tax expense (benefit) 2 | Tax expense (benefit) 2 | 4 | 6 | 6 | 8 | Tax expense (benefit) 2 | 2 | 6 | 8 | 14 | ||||||||||||||||||
Net (gains) losses reclassified from AOCL to net income | Net (gains) losses reclassified from AOCL to net income | (13) | (19) | (19) | (26) | Net (gains) losses reclassified from AOCL to net income | (6) | (19) | (25) | (45) | ||||||||||||||||||
Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | 17 | 76 | (32) | (24) | Other comprehensive income (loss), net of tax | (13) | 8 | (45) | (16) | ||||||||||||||||||
Ending balance | Ending balance | $ | 72 | $ | 40 | $ | 72 | $ | 40 | Ending balance | $ | 59 | $ | 48 | $ | 59 | $ | 48 | ||||||||||
Cumulative Translation Adjustment | Cumulative Translation Adjustment | Cumulative Translation Adjustment | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | (1,183) | $ | (1,298) | $ | (930) | $ | (1,135) | Beginning balance | $ | (1,118) | $ | (1,235) | $ | (930) | $ | (1,135) | ||||||||||
Gains (losses) on foreign currency translation | Gains (losses) on foreign currency translation | 67 | 63 | (150) | (98) | Gains (losses) on foreign currency translation | (148) | 116 | (298) | 18 | ||||||||||||||||||
Tax (expense) benefit | Tax (expense) benefit | 1 | 2 | (35) | 14 | Tax (expense) benefit | (8) | 4 | (43) | 18 | ||||||||||||||||||
Net gains (losses) on foreign currency translation | Net gains (losses) on foreign currency translation | 68 | 65 | (185) | (84) | Net gains (losses) on foreign currency translation | (156) | 120 | (341) | 36 | ||||||||||||||||||
(Gains) losses reclassified from AOCL to net income 3 | (Gains) losses reclassified from AOCL to net income 3 | (3) | (2) | (3) | (16) | (Gains) losses reclassified from AOCL to net income 3 | (1) | (29) | (4) | (45) | ||||||||||||||||||
Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | 65 | 63 | (188) | (100) | Other comprehensive income (loss), net of tax | (157) | 91 | (345) | (9) | ||||||||||||||||||
Ending balance | Ending balance | $ | (1,118) | $ | (1,235) | $ | (1,118) | $ | (1,235) | Ending balance | $ | (1,275) | $ | (1,144) | $ | (1,275) | $ | (1,144) | ||||||||||
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | (8,425) | $ | (8,639) | $ | (9,559) | $ | (8,781) | Beginning balance | $ | (8,276) | $ | (8,498) | $ | (9,559) | $ | (8,781) | ||||||||||
Gains (losses) arising during the period 4 | Gains (losses) arising during the period 4 | 0 | 0 | 1,268 | 0 | Gains (losses) arising during the period 4 | 2 | 2 | 1,270 | 2 | ||||||||||||||||||
Tax (expense) benefit | Tax (expense) benefit | 0 | 0 | (298) | 0 | Tax (expense) benefit | — | — | (298) | — | ||||||||||||||||||
Net gains (losses) arising during the period | Net gains (losses) arising during the period | 0 | 0 | 970 | 0 | Net gains (losses) arising during the period | 2 | 2 | 972 | 2 | ||||||||||||||||||
Amortization and recognition of net loss and prior service credits 5 | Amortization and recognition of net loss and prior service credits 5 | 194 | 184 | 392 | 369 | Amortization and recognition of net loss and prior service credits 5 | 191 | 188 | 583 | 557 | ||||||||||||||||||
Tax expense (benefit) 2 | Tax expense (benefit) 2 | (45) | (43) | (79) | (86) | Tax expense (benefit) 2 | (44) | (43) | (123) | (129) | ||||||||||||||||||
Net loss and prior service credits reclassified from AOCL to net income | Net loss and prior service credits reclassified from AOCL to net income | 149 | 141 | 313 | 283 | Net loss and prior service credits reclassified from AOCL to net income | 147 | 145 | 460 | 428 | ||||||||||||||||||
Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | 149 | 141 | 1,283 | 283 | Other comprehensive income (loss), net of tax | 149 | 147 | 1,432 | 430 | ||||||||||||||||||
Ending balance | Ending balance | $ | (8,276) | $ | (8,498) | $ | (8,276) | $ | (8,498) | Ending balance | $ | (8,127) | $ | (8,351) | $ | (8,127) | $ | (8,351) | ||||||||||
Derivative Instruments | Derivative Instruments | Derivative Instruments | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | (360) | $ | (556) | $ | (470) | $ | (394) | Beginning balance | $ | (354) | $ | (532) | $ | (470) | $ | (394) | ||||||||||
Gains (losses) on derivative instruments | Gains (losses) on derivative instruments | (10) | 17 | 112 | (159) | Gains (losses) on derivative instruments | 55 | 45 | 167 | (114) | ||||||||||||||||||
Tax (expense) benefit | Tax (expense) benefit | 8 | (2) | (1) | 8 | Tax (expense) benefit | (9) | (10) | (10) | (2) | ||||||||||||||||||
Net gains (losses) on derivative instruments | Net gains (losses) on derivative instruments | (2) | 15 | 111 | (151) | Net gains (losses) on derivative instruments | 46 | 35 | 157 | (116) | ||||||||||||||||||
(Gains) losses reclassified from AOCL to net income 6 | (Gains) losses reclassified from AOCL to net income 6 | 9 | 12 | 6 | 19 | (Gains) losses reclassified from AOCL to net income 6 | (16) | 5 | (10) | 24 | ||||||||||||||||||
Tax expense (benefit) 2 | Tax expense (benefit) 2 | (1) | (3) | (1) | (6) | Tax expense (benefit) 2 | 2 | (2) | 1 | (8) | ||||||||||||||||||
Net (gains) losses reclassified from AOCL to net income | Net (gains) losses reclassified from AOCL to net income | 8 | 9 | 5 | 13 | Net (gains) losses reclassified from AOCL to net income | (14) | 3 | (9) | 16 | ||||||||||||||||||
Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | 6 | 24 | 116 | (138) | Other comprehensive income (loss), net of tax | 32 | 38 | 148 | (100) | ||||||||||||||||||
Ending balance | Ending balance | $ | (354) | $ | (532) | $ | (354) | $ | (532) | Ending balance | $ | (322) | $ | (494) | $ | (322) | $ | (494) | ||||||||||
Total AOCL ending balance | Total AOCL ending balance | $ | (9,676) | $ | (10,225) | $ | (9,676) | $ | (10,225) | Total AOCL ending balance | $ | (9,665) | $ | (9,941) | $ | (9,665) | $ | (9,941) |
Noncontrolling Interests | Noncontrolling Interests | Three Months Ended | Six Months Ended | Noncontrolling Interests | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | $ | 560 | $ | 555 | $ | 570 | $ | 553 | Balance at beginning of period | $ | 580 | $ | 560 | $ | 570 | $ | 553 | ||||||||||
Net income attributable to noncontrolling interests | Net income attributable to noncontrolling interests | 31 | 8 | 46 | 27 | Net income attributable to noncontrolling interests | 23 | 24 | 69 | 51 | ||||||||||||||||||
Distributions to noncontrolling interests 1 | Distributions to noncontrolling interests 1 | (12) | (11) | (20) | (12) | Distributions to noncontrolling interests 1 | (7) | — | (27) | (12) | ||||||||||||||||||
Deconsolidation of noncontrolling interests 2 | Deconsolidation of noncontrolling interests 2 | — | (7) | — | (7) | |||||||||||||||||||||||
Cumulative translation adjustments | Cumulative translation adjustments | 1 | 8 | (15) | (8) | Cumulative translation adjustments | (8) | 2 | (23) | (6) | ||||||||||||||||||
Other | Other | 0 | 0 | (1) | 0 | Other | 1 | (1) | — | (1) | ||||||||||||||||||
Balance at end of period | Balance at end of period | $ | 580 | $ | 560 | $ | 580 | $ | 560 | Balance at end of period | $ | 589 | $ | 578 | $ | 589 | $ | 578 |
Net Periodic Benefit Cost for All Significant Plans | Net Periodic Benefit Cost for All Significant Plans | Three Months Ended | Six Months Ended | Net Periodic Benefit Cost for All Significant Plans | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||
Defined Benefit Pension Plans | Defined Benefit Pension Plans | Defined Benefit Pension Plans | ||||||||||||||||||||||||||
Service cost | Service cost | $ | 96 | $ | 99 | $ | 198 | $ | 198 | Service cost | $ | 95 | $ | 100 | $ | 293 | $ | 298 | ||||||||||
Interest cost | Interest cost | 150 | 191 | 293 | 383 | Interest cost | 151 | 191 | 444 | 574 | ||||||||||||||||||
Expected return on plan assets | Expected return on plan assets | (435) | (412) | (857) | (826) | Expected return on plan assets | (434) | (415) | (1,291) | (1,241) | ||||||||||||||||||
Amortization of prior service credit | Amortization of prior service credit | (5) | (5) | (10) | (10) | Amortization of prior service credit | (5) | (4) | (15) | (14) | ||||||||||||||||||
Amortization of net loss | Amortization of net loss | 200 | 192 | 424 | 384 | Amortization of net loss | 198 | 194 | 622 | 578 | ||||||||||||||||||
Curtailment gain | Curtailment gain | 0 | 0 | (19) | 0 | Curtailment gain | — | — | (19) | — | ||||||||||||||||||
Net periodic benefit cost | Net periodic benefit cost | $ | 6 | $ | 65 | $ | 29 | $ | 129 | Net periodic benefit cost | $ | 5 | $ | 66 | $ | 34 | $ | 195 | ||||||||||
Other Postretirement Benefit Plans | Other Postretirement Benefit Plans | Other Postretirement Benefit Plans | ||||||||||||||||||||||||||
Service cost | Service cost | $ | 2 | $ | 2 | $ | 4 | $ | 4 | Service cost | $ | 2 | $ | 2 | $ | 6 | $ | 6 | ||||||||||
Interest cost | Interest cost | 5 | 10 | 11 | 19 | Interest cost | 6 | 10 | 17 | 29 | ||||||||||||||||||
Amortization of net gain | Amortization of net gain | (1) | (3) | (3) | (5) | Amortization of net gain | (2) | (2) | (5) | (7) | ||||||||||||||||||
Net periodic benefit cost | Net periodic benefit cost | $ | 6 | $ | 9 | $ | 12 | $ | 18 | Net periodic benefit cost | $ | 6 | $ | 10 | $ | 18 | $ | 28 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments | Jun 30, 2021 | Dec 31, 2020 | Fair Value of Financial Instruments | Sep 30, 2021 | Dec 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
In millions | In millions | Cost | Gain | Loss | Fair Value | Cost | Gain | Loss | Fair Value | In millions | Cost | Gain | Loss | Fair Value | Cost | Gain | Loss | Fair Value | ||||||||||||||||||||||||||||||||||
Cash equivalents: | Cash equivalents: | Cash equivalents: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Held-to-maturity securities 1 | Held-to-maturity securities 1 | $ | 644 | $ | 0 | $ | 0 | $ | 644 | $ | 980 | $ | 0 | $ | 0 | $ | 980 | Held-to-maturity securities 1 | $ | 921 | $ | — | $ | — | $ | 921 | $ | 980 | $ | — | $ | — | $ | 980 | ||||||||||||||||||
Money market funds | Money market funds | 728 | 0 | 0 | 728 | 484 | 0 | 0 | 484 | Money market funds | 498 | — | — | 498 | 484 | — | — | 484 | ||||||||||||||||||||||||||||||||||
Total cash equivalents | Total cash equivalents | $ | 1,372 | $ | 0 | $ | 0 | $ | 1,372 | $ | 1,464 | $ | 0 | $ | 0 | $ | 1,464 | Total cash equivalents | $ | 1,419 | $ | — | $ | — | $ | 1,419 | $ | 1,464 | $ | — | $ | — | $ | 1,464 | ||||||||||||||||||
Marketable securities 2 | Marketable securities 2 | $ | 106 | $ | 0 | $ | (1) | $ | 105 | $ | 45 | $ | 0 | $ | 0 | $ | 45 | Marketable securities 2 | $ | 138 | $ | 3 | $ | — | $ | 141 | $ | 45 | $ | — | $ | — | $ | 45 | ||||||||||||||||||
Other investments: | Other investments: | Other investments: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities: | Debt securities: | Debt securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Government debt 3 | Government debt 3 | $ | 592 | $ | 23 | $ | (21) | $ | 594 | $ | 673 | $ | 35 | $ | (10) | $ | 698 | Government debt 3 | $ | 687 | $ | 18 | $ | (24) | $ | 681 | $ | 673 | $ | 35 | $ | (10) | $ | 698 | ||||||||||||||||||
Corporate bonds | Corporate bonds | 934 | 100 | (5) | 1,029 | 822 | 119 | (5) | 936 | Corporate bonds | 1,172 | 89 | (9) | 1,252 | 822 | 119 | (5) | 936 | ||||||||||||||||||||||||||||||||||
Total debt securities | Total debt securities | $ | 1,526 | $ | 123 | $ | (26) | $ | 1,623 | $ | 1,495 | $ | 154 | $ | (15) | $ | 1,634 | Total debt securities | $ | 1,859 | $ | 107 | $ | (33) | $ | 1,933 | $ | 1,495 | $ | 154 | $ | (15) | $ | 1,634 | ||||||||||||||||||
Equity securities 4 | Equity securities 4 | 7 | 25 | 0 | 32 | 6 | 34 | 0 | 40 | Equity securities 4 | 6 | 19 | — | 25 | 6 | 34 | — | 40 | ||||||||||||||||||||||||||||||||||
Total other investments | Total other investments | $ | 1,533 | $ | 148 | $ | (26) | $ | 1,655 | $ | 1,501 | $ | 188 | $ | (15) | $ | 1,674 | Total other investments | $ | 1,865 | $ | 126 | $ | (33) | $ | 1,958 | $ | 1,501 | $ | 188 | $ | (15) | $ | 1,674 | ||||||||||||||||||
Total cash equivalents, marketable securities and other investments | Total cash equivalents, marketable securities and other investments | $ | 3,011 | $ | 148 | $ | (27) | $ | 3,132 | $ | 3,010 | $ | 188 | $ | (15) | $ | 3,183 | Total cash equivalents, marketable securities and other investments | $ | 3,422 | $ | 129 | $ | (33) | $ | 3,518 | $ | 3,010 | $ | 188 | $ | (15) | $ | 3,183 | ||||||||||||||||||
Long-term debt including debt due within one year 5 | Long-term debt including debt due within one year 5 | $ | (15,538) | $ | 16 | $ | (3,160) | $ | (18,682) | $ | (16,951) | $ | 6 | $ | (3,659) | $ | (20,604) | Long-term debt including debt due within one year 5 | $ | (14,318) | $ | 21 | $ | (2,673) | $ | (16,970) | $ | (16,951) | $ | 6 | $ | (3,659) | $ | (20,604) | ||||||||||||||||||
Derivatives relating to: | Derivatives relating to: | Derivatives relating to: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rates 6 | Interest rates 6 | $ | — | $ | 0 | $ | (186) | $ | (186) | $ | — | $ | 41 | $ | (182) | $ | (141) | Interest rates 6 | $ | — | $ | — | $ | (166) | $ | (166) | $ | — | $ | 41 | $ | (182) | $ | (141) | ||||||||||||||||||
Foreign currency | Foreign currency | — | 17 | (64) | (47) | — | 69 | (84) | (15) | Foreign currency | — | 53 | (82) | (29) | — | 69 | (84) | (15) | ||||||||||||||||||||||||||||||||||
Commodities 6 | Commodities 6 | — | 191 | (122) | 69 | — | 63 | (84) | (21) | Commodities 6 | — | 240 | (132) | 108 | — | 63 | (84) | (21) | ||||||||||||||||||||||||||||||||||
Total derivatives | Total derivatives | $ | — | $ | 208 | $ | (372) | $ | (164) | $ | — | $ | 173 | $ | (350) | $ | (177) | Total derivatives | $ | — | $ | 293 | $ | (380) | $ | (87) | $ | — | $ | 173 | $ | (350) | $ | (177) |
Investing Results | Investing Results | Six Months Ended | Investing Results | Nine Months Ended | ||||||||||||
In millions | In millions | Jun 30, 2021 | Jun 30, 2020 | In millions | Sep 30, 2021 | Sep 30, 2020 | ||||||||||
Proceeds from sales of available-for-sale securities | Proceeds from sales of available-for-sale securities | $ | 260 | $ | 542 | Proceeds from sales of available-for-sale securities | $ | 339 | $ | 742 | ||||||
Gross realized gains | Gross realized gains | $ | 31 | $ | 51 | Gross realized gains | $ | 41 | $ | 84 | ||||||
Gross realized losses | Gross realized losses | $ | (6) | $ | (17) | Gross realized losses | $ | (8) | $ | (25) |
Contractual Maturities of Debt Securities at Jun 30, 2021 1 | Cost | Fair Value | ||||||||||||||
Contractual Maturities of Debt Securities at Sep 30, 2021 1 | Contractual Maturities of Debt Securities at Sep 30, 2021 1 | Cost | Fair Value | |||||||||||||
In millions | In millions | Cost | Fair Value | In millions | ||||||||||||
Within one year | Within one year | Within one year | $ | 22 | $ | 23 | ||||||||||
One to five years | One to five years | 465 | 505 | One to five years | 618 | 650 | ||||||||||
Six to ten years | Six to ten years | 585 | 602 | Six to ten years | 709 | 720 | ||||||||||
After ten years | After ten years | 448 | 487 | After ten years | 510 | 540 | ||||||||||
Total | Total | $ | 1,526 | $ | 1,623 | Total | $ | 1,859 | $ | 1,933 |
Investments in Equity Securities | Investments in Equity Securities | Jun 30, 2021 | Dec 31, 2020 | Investments in Equity Securities | Sep 30, 2021 | Dec 31, 2020 | ||||||||||
In millions | In millions | In millions | ||||||||||||||
Readily determinable fair value | Readily determinable fair value | $ | 32 | $ | 40 | Readily determinable fair value | $ | 25 | $ | 40 | ||||||
Not readily determinable fair value | Not readily determinable fair value | $ | 224 | $ | 215 | Not readily determinable fair value | $ | 226 | $ | 215 |
Notional Amounts - Net | Notional Amounts - Net | Jun 30, 2021 | Dec 31, 2020 | Notional Amounts - Net | Sep 30, 2021 | Dec 31, 2020 | ||||||||||
In millions | In millions | In millions | ||||||||||||||
Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | ||||||||||||||
Interest rate contracts | Interest rate contracts | $ | 2,855 | $ | 612 | Interest rate contracts | $ | 3,005 | $ | 612 | ||||||
Foreign currency contracts | Foreign currency contracts | $ | 1,785 | $ | 3,784 | Foreign currency contracts | $ | 3,725 | $ | 3,784 | ||||||
Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | ||||||||||||||
Interest rate contracts | Interest rate contracts | $ | 63 | $ | 94 | Interest rate contracts | $ | 58 | $ | 94 | ||||||
Foreign currency contracts | Foreign currency contracts | $ | 11,615 | $ | 9,187 | Foreign currency contracts | $ | 13,663 | $ | 9,187 |
Commodity Notionals - Net | Commodity Notionals - Net | Jun 30, 2021 | Dec 31, 2020 | Notional Volume Unit | Commodity Notionals - Net | Sep 30, 2021 | Dec 31, 2020 | Notional Volume Unit | ||||||||||||||
Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | ||||||||||||||||||||
Hydrocarbon derivatives | Hydrocarbon derivatives | 7.5 | 10.9 | million barrels of oil equivalent | Hydrocarbon derivatives | 6.9 | 10.9 | million barrels of oil equivalent | ||||||||||||||
Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Hydrocarbon derivatives | Hydrocarbon derivatives | 1.9 | 0 | million barrels of oil equivalent | Hydrocarbon derivatives | 0.1 | — | million barrels of oil equivalent |
Maturity Dates of Derivatives Designated as Hedging Instruments | Year | ||||
Interest rate contracts | 2023 | ||||
Foreign currency contracts | |||||
Commodity contracts | 2023 |
Fair Value of Derivative Instruments | Fair Value of Derivative Instruments | Jun 30, 2021 | Fair Value of Derivative Instruments | Sep 30, 2021 | ||||||||||||||||||||||||
In millions | In millions | Balance Sheet Classification | Gross | Counterparty and Cash Collateral Netting 1 | Net Amounts Included in the Consolidated Balance Sheets | In millions | Balance Sheet Classification | Gross | Counterparty and Cash Collateral Netting 1 | Net Amounts Included in the Consolidated Balance Sheets | ||||||||||||||||||
Asset derivatives | Asset derivatives | Asset derivatives | ||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||
Interest rate contracts | Interest rate contracts | Deferred charges and other assets | $ | 177 | $ | (177) | $ | 0 | Interest rate contracts | Deferred charges and other assets | $ | 182 | $ | (182) | $ | — | ||||||||||||
Foreign currency contracts | Foreign currency contracts | Other current assets | 32 | (18) | 14 | |||||||||||||||||||||||
Foreign currency contracts | Foreign currency contracts | Deferred charges and other assets | 86 | (51) | 35 | |||||||||||||||||||||||
Commodity contracts | Commodity contracts | Other current assets | 448 | (253) | 195 | |||||||||||||||||||||||
Commodity contracts | Commodity contracts | Deferred charges and other assets | 68 | (32) | 36 | |||||||||||||||||||||||
Total | Total | $ | 816 | $ | (536) | $ | 280 | |||||||||||||||||||||
Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||
Foreign currency contracts | Foreign currency contracts | Other current assets | $ | 20 | $ | (16) | $ | 4 | ||||||||||||||||||||
Commodity contracts | Commodity contracts | Other current assets | 29 | (20) | 9 | |||||||||||||||||||||||
Commodity contracts | Commodity contracts | Deferred charges and other assets | 2 | (2) | — | |||||||||||||||||||||||
Total | Total | $ | 51 | $ | (38) | $ | 13 | |||||||||||||||||||||
Total asset derivatives | Total asset derivatives | $ | 867 | $ | (574) | $ | 293 | |||||||||||||||||||||
Liability derivatives | Liability derivatives | |||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||
Interest rate contracts | Interest rate contracts | Other noncurrent obligations | $ | 233 | $ | (182) | $ | 51 | ||||||||||||||||||||
Foreign currency contracts | Foreign currency contracts | Accrued and other current liabilities | 21 | (18) | 3 | |||||||||||||||||||||||
Foreign currency contracts | Foreign currency contracts | Other current assets | 39 | (25) | 14 | Foreign currency contracts | Other noncurrent obligations | 51 | (51) | — | ||||||||||||||||||
Commodity contracts | Commodity contracts | Other current assets | 409 | (274) | 135 | Commodity contracts | Accrued and other current liabilities | 391 | (287) | 104 | ||||||||||||||||||
Commodity contracts | Commodity contracts | Deferred charges and other assets | 84 | (42) | 42 | Commodity contracts | Other noncurrent obligations | 48 | (34) | 14 | ||||||||||||||||||
Total | Total | $ | 709 | $ | (518) | $ | 191 | Total | $ | 744 | $ | (572) | $ | 172 | ||||||||||||||
Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||
Interest rate contracts | Interest rate contracts | Deferred charges and other assets | $ | 1 | $ | (1) | $ | 0 | Interest rate contracts | Other noncurrent obligations | $ | 115 | $ | — | $ | 115 | ||||||||||||
Foreign currency contracts | Foreign currency contracts | Other current assets | 19 | (16) | 3 | Foreign currency contracts | Accrued and other current liabilities | 95 | (16) | 79 | ||||||||||||||||||
Commodity contracts | Commodity contracts | Other current assets | 18 | (4) | 14 | Commodity contracts | Accrued and other current liabilities | 34 | (21) | 13 | ||||||||||||||||||
Total | $ | 38 | $ | (21) | $ | 17 | ||||||||||||||||||||||
Total asset derivatives | $ | 747 | $ | (539) | $ | 208 | ||||||||||||||||||||||
Liability derivatives | ||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||
Interest rate contracts | Other noncurrent obligations | $ | 235 | $ | (177) | $ | 58 | |||||||||||||||||||||
Foreign currency contracts | Accrued and other current liabilities | 28 | (25) | 3 | ||||||||||||||||||||||||
Commodity contracts | Accrued and other current liabilities | 376 | (296) | 80 | ||||||||||||||||||||||||
Commodity contracts | Commodity contracts | Other noncurrent obligations | 61 | (46) | 15 | Commodity contracts | Other noncurrent obligations | 3 | (2) | 1 | ||||||||||||||||||
Total | Total | $ | 700 | $ | (544) | $ | 156 | Total | $ | 247 | $ | (39) | $ | 208 | ||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||
Interest rate contracts | Other noncurrent obligations | $ | 129 | $ | (1) | $ | 128 | |||||||||||||||||||||
Foreign currency contracts | Accrued and other current liabilities | 77 | (16) | 61 | ||||||||||||||||||||||||
Commodity contracts | Accrued and other current liabilities | 31 | (4) | 27 | ||||||||||||||||||||||||
Total | $ | 237 | $ | (21) | $ | 216 | ||||||||||||||||||||||
Total liability derivatives | Total liability derivatives | $ | 937 | $ | (565) | $ | 372 | Total liability derivatives | $ | 991 | $ | (611) | $ | 380 |
Fair Value of Derivative Instruments | Fair Value of Derivative Instruments | Dec 31, 2020 | Fair Value of Derivative Instruments | Dec 31, 2020 | ||||||||||||||||||||||||
In millions | In millions | Balance Sheet Classification | Gross | Counterparty and Cash Collateral Netting 1 | Net Amounts Included in the Consolidated Balance Sheets | In millions | Balance Sheet Classification | Gross | Counterparty and Cash Collateral Netting 1 | Net Amounts Included in the Consolidated Balance Sheets | ||||||||||||||||||
Asset derivatives | Asset derivatives | Asset derivatives | ||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||
Interest rate contracts | Interest rate contracts | Other current assets | $ | 3 | $ | (3) | $ | 0 | Interest rate contracts | Other current assets | $ | 3 | $ | (3) | $ | — | ||||||||||||
Foreign currency contracts | Foreign currency contracts | Other current assets | 39 | (19) | 20 | Foreign currency contracts | Other current assets | 39 | (19) | 20 | ||||||||||||||||||
Commodity contracts | Commodity contracts | Other current assets | 146 | (109) | 37 | Commodity contracts | Other current assets | 146 | (109) | 37 | ||||||||||||||||||
Commodity contracts | Commodity contracts | Deferred charges and other assets | 31 | (8) | 23 | Commodity contracts | Deferred charges and other assets | 31 | (8) | 23 | ||||||||||||||||||
Total | Total | $ | 219 | $ | (139) | $ | 80 | Total | $ | 219 | $ | (139) | $ | 80 | ||||||||||||||
Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||
Interest rate contracts | Interest rate contracts | Deferred charges and other assets | $ | 41 | $ | 0 | $ | 41 | Interest rate contracts | Deferred charges and other assets | $ | 41 | $ | — | $ | 41 | ||||||||||||
Foreign currency contracts | Foreign currency contracts | Other current assets | 74 | (25) | 49 | Foreign currency contracts | Other current assets | 74 | (25) | 49 | ||||||||||||||||||
Commodity contracts | Commodity contracts | Other current assets | 4 | (1) | 3 | Commodity contracts | Other current assets | 4 | (1) | 3 | ||||||||||||||||||
Total | Total | $ | 119 | $ | (26) | $ | 93 | Total | $ | 119 | $ | (26) | $ | 93 | ||||||||||||||
Total asset derivatives | Total asset derivatives | $ | 338 | $ | (165) | $ | 173 | Total asset derivatives | $ | 338 | $ | (165) | $ | 173 | ||||||||||||||
Liability derivatives | Liability derivatives | Liability derivatives | ||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||
Interest rate contracts | Interest rate contracts | Accrued and other current liabilities | $ | 7 | $ | (3) | $ | 4 | Interest rate contracts | Accrued and other current liabilities | $ | 7 | $ | (3) | $ | 4 | ||||||||||||
Foreign currency contracts | Foreign currency contracts | Accrued and other current liabilities | 93 | (19) | 74 | Foreign currency contracts | Accrued and other current liabilities | 93 | (19) | 74 | ||||||||||||||||||
Commodity contracts | Commodity contracts | Accrued and other current liabilities | 151 | (112) | 39 | Commodity contracts | Accrued and other current liabilities | 151 | (112) | 39 | ||||||||||||||||||
Commodity contracts | Commodity contracts | Other noncurrent obligations | 48 | (9) | 39 | Commodity contracts | Other noncurrent obligations | 48 | (9) | 39 | ||||||||||||||||||
Total | Total | $ | 299 | $ | (143) | $ | 156 | Total | $ | 299 | $ | (143) | $ | 156 | ||||||||||||||
Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||
Interest rate contracts | Interest rate contracts | Other noncurrent obligations | $ | 178 | $ | 0 | $ | 178 | Interest rate contracts | Other noncurrent obligations | $ | 178 | $ | — | $ | 178 | ||||||||||||
Foreign currency contracts | Foreign currency contracts | Accrued and other current liabilities | 35 | (25) | 10 | Foreign currency contracts | Accrued and other current liabilities | 35 | (25) | 10 | ||||||||||||||||||
Commodity contracts | Commodity contracts | Accrued and other current liabilities | 9 | (3) | 6 | Commodity contracts | Accrued and other current liabilities | 9 | (3) | 6 | ||||||||||||||||||
Total | Total | $ | 222 | $ | (28) | $ | 194 | Total | $ | 222 | $ | (28) | $ | 194 | ||||||||||||||
Total liability derivatives | Total liability derivatives | $ | 521 | $ | (171) | $ | 350 | Total liability derivatives | $ | 521 | $ | (171) | $ | 350 |
Effect of Derivative Instruments | Effect of Derivative Instruments | Amount of gain (loss) recognized in OCI 1 | Amount of gain (loss) recognized in income 2 | Income Statement Classification | Effect of Derivative Instruments | Amount of gain (loss) recognized in OCI 1 | Amount of gain (loss) recognized in income 2 | Income Statement Classification | ||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||
In millions | In millions | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||||||||
Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||||||
Fair value hedges: | Fair value hedges: | Fair value hedges: | ||||||||||||||||||||||||||||||||
Excluded components 3 | Excluded components 3 | $ | 0 | $ | 4 | $ | 0 | $ | 0 | Interest expense and amortization of debt discount | Excluded components 3 | $ | — | $ | 3 | $ | — | $ | — | Interest expense and amortization of debt discount | ||||||||||||||
Cash flow hedges: | Cash flow hedges: | Cash flow hedges: | ||||||||||||||||||||||||||||||||
Interest rate contracts | Interest rate contracts | (44) | 0 | (2) | 0 | Interest expense and amortization of debt discount | Interest rate contracts | 5 | — | (2) | (1) | Interest expense and amortization of debt discount | ||||||||||||||||||||||
Foreign currency contracts | Foreign currency contracts | 1 | (5) | (4) | 5 | Cost of sales | Foreign currency contracts | 4 | (12) | (3) | (1) | Cost of sales | ||||||||||||||||||||||
Commodity contracts | Commodity contracts | 41 | 22 | (2) | (17) | Cost of sales | Commodity contracts | 37 | 42 | 21 | (4) | Cost of sales | ||||||||||||||||||||||
Net foreign investment hedges: | Net foreign investment hedges: | Net foreign investment hedges: | ||||||||||||||||||||||||||||||||
Foreign currency contracts | Foreign currency contracts | 3 | (6) | 0 | 0 | Foreign currency contracts | 20 | (19) | — | — | ||||||||||||||||||||||||
Excluded components 3 | Excluded components 3 | 3 | 5 | 3 | 2 | Sundry income (expense) - net | Excluded components 3 | 12 | — | 1 | 2 | Sundry income (expense) - net | ||||||||||||||||||||||
Total derivatives designated as hedging instruments | Total derivatives designated as hedging instruments | $ | 4 | $ | 20 | $ | (5) | $ | (10) | Total derivatives designated as hedging instruments | $ | 78 | $ | 14 | $ | 17 | $ | (4) | ||||||||||||||||
Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||||||
Interest rate contracts | Interest rate contracts | $ | 0 | $ | 0 | $ | (1) | $ | (1) | Interest expense and amortization of debt discount | Interest rate contracts | $ | — | $ | — | $ | (2) | $ | (3) | Interest expense and amortization of debt discount | ||||||||||||||
Foreign currency contracts | Foreign currency contracts | 0 | 0 | (5) | 9 | Sundry income (expense) - net | Foreign currency contracts | — | — | (84) | (5) | Sundry income (expense) - net | ||||||||||||||||||||||
Commodity contracts | Commodity contracts | 0 | 0 | (5) | 6 | Cost of sales | Commodity contracts | — | — | (12) | (7) | Cost of sales | ||||||||||||||||||||||
Total derivatives not designated as hedging instruments | Total derivatives not designated as hedging instruments | $ | 0 | $ | 0 | $ | (11) | $ | 14 | Total derivatives not designated as hedging instruments | $ | — | $ | — | $ | (98) | $ | (15) | ||||||||||||||||
Total derivatives | Total derivatives | $ | 4 | $ | 20 | $ | (16) | $ | 4 | Total derivatives | $ | 78 | $ | 14 | $ | (81) | $ | (19) |
Effect of Derivative Instruments | Effect of Derivative Instruments | Amount of gain (loss) recognized in OCI 1 | Amount of gain (loss) recognized in income 2 | Income Statement Classification | Effect of Derivative Instruments | Amount of gain (loss) recognized in OCI 1 | Amount of gain (loss) recognized in income 2 | Income Statement Classification | ||||||||||||||||||||||||||
Six Months Ended | Six Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
In millions | In millions | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||||||||
Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||||||
Fair value hedges: | Fair value hedges: | Fair value hedges: | ||||||||||||||||||||||||||||||||
Interest rate contracts | Interest rate contracts | $ | 0 | $ | 0 | $ | (25) | $ | 24 | Interest expense and amortization of debt discount 3 | Interest rate contracts | $ | — | $ | — | $ | (25) | $ | 24 | Interest expense and amortization of debt discount 3 | ||||||||||||||
Excluded components 4 | Excluded components 4 | 2 | 7 | 0 | 0 | Interest expense and amortization of debt discount | Excluded components 4 | 2 | 10 | — | — | Interest expense and amortization of debt discount | ||||||||||||||||||||||
Cash flow hedges: | Cash flow hedges: | Cash flow hedges: | ||||||||||||||||||||||||||||||||
Interest rate contracts | Interest rate contracts | (44) | 0 | (5) | 0 | Interest expense and amortization of debt discount | Interest rate contracts | (39) | — | (7) | (1) | Interest expense and amortization of debt discount | ||||||||||||||||||||||
Foreign currency contracts | Foreign currency contracts | 6 | 3 | (12) | 9 | Cost of sales | Foreign currency contracts | 10 | (9) | (15) | 8 | Cost of sales | ||||||||||||||||||||||
Commodity contracts | Commodity contracts | 106 | (65) | 11 | (28) | Cost of sales | Commodity contracts | 143 | (23) | 32 | (32) | Cost of sales | ||||||||||||||||||||||
Net foreign investment hedges: | Net foreign investment hedges: | Net foreign investment hedges: | ||||||||||||||||||||||||||||||||
Foreign currency contracts | Foreign currency contracts | 13 | 16 | 0 | 0 | Foreign currency contracts | 33 | (3) | — | — | ||||||||||||||||||||||||
Excluded components 4 | Excluded components 4 | 8 | 27 | 4 | 16 | Sundry income (expense) - net | Excluded components 4 | 20 | 27 | 5 | 18 | Sundry income (expense) - net | ||||||||||||||||||||||
Total derivatives designated as hedging instruments | Total derivatives designated as hedging instruments | $ | 91 | $ | (12) | $ | (27) | $ | 21 | Total derivatives designated as hedging instruments | $ | 169 | $ | 2 | $ | (10) | $ | 17 | ||||||||||||||||
Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||||||
Interest rate contracts | Interest rate contracts | $ | 0 | $ | 0 | $ | (3) | $ | (7) | Interest expense and amortization of debt discount | Interest rate contracts | $ | — | $ | — | $ | (5) | $ | (10) | Interest expense and amortization of debt discount | ||||||||||||||
Foreign currency contracts | Foreign currency contracts | 0 | 0 | (118) | (10) | Sundry income (expense) - net | Foreign currency contracts | — | — | (202) | (15) | Sundry income (expense) - net | ||||||||||||||||||||||
Commodity contracts | Commodity contracts | 0 | 0 | (35) | 17 | Cost of sales | Commodity contracts | — | — | (47) | 10 | Cost of sales | ||||||||||||||||||||||
Total derivatives not designated as hedging instruments | Total derivatives not designated as hedging instruments | $ | 0 | $ | 0 | $ | (156) | $ | 0 | Total derivatives not designated as hedging instruments | $ | — | $ | — | $ | (254) | $ | (15) | ||||||||||||||||
Total derivatives | Total derivatives | $ | 91 | $ | (12) | $ | (183) | $ | 21 | Total derivatives | $ | 169 | $ | 2 | $ | (264) | $ | 2 |
Expected Reclassifications from AOCL within the next 12 months | |||||
In millions | |||||
Cash flow hedges: | |||||
Interest rate contracts | $ | (8) | |||
Commodity contracts | $ | ||||
Foreign currency contracts | $ | ||||
Net foreign investment hedges: | |||||
Excluded components | $ |
Basis of Fair Value Measurements on a Recurring Basis | Basis of Fair Value Measurements on a Recurring Basis | Jun 30, 2021 | Dec 31, 2020 | Basis of Fair Value Measurements on a Recurring Basis | Sep 30, 2021 | Dec 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Items (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | Quoted Prices in Active Markets for Identical Items (Level 1) | Significant Other Observable Inputs (Level 2) | Total | Basis of Fair Value Measurements on a Recurring Basis | Quoted Prices in Active Markets for Identical Items (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | Quoted Prices in Active Markets for Identical Items (Level 1) | Significant Other Observable Inputs (Level 2) | Total | ||||||||||||||||||||||||||||||||||||||
In millions | In millions | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
Assets at fair value: | Assets at fair value: | Assets at fair value: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents: | Cash equivalents: | Cash equivalents: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Held-to-maturity securities 1 | Held-to-maturity securities 1 | $ | 0 | $ | 644 | $ | 0 | $ | 644 | $ | 0 | $ | 980 | $ | 980 | Held-to-maturity securities 1 | $ | — | $ | 921 | $ | — | $ | 921 | $ | — | $ | 980 | $ | 980 | ||||||||||||||||||||||
Money market funds | Money market funds | 0 | 728 | 0 | 728 | 0 | 484 | 484 | Money market funds | — | 498 | — | 498 | — | 484 | 484 | ||||||||||||||||||||||||||||||||||||
Marketable securities 2 | Marketable securities 2 | 0 | 105 | 0 | 105 | 0 | 45 | 45 | Marketable securities 2 | — | 141 | — | 141 | — | 45 | 45 | ||||||||||||||||||||||||||||||||||||
Equity securities 3 | Equity securities 3 | 32 | 0 | 0 | 32 | 40 | 0 | 40 | Equity securities 3 | 25 | — | — | 25 | 40 | — | 40 | ||||||||||||||||||||||||||||||||||||
Debt securities: 3 | Debt securities: 3 | Debt securities: 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Government debt 4 | Government debt 4 | 0 | 594 | 0 | 594 | 0 | 698 | 698 | Government debt 4 | — | 681 | — | 681 | — | 698 | 698 | ||||||||||||||||||||||||||||||||||||
Corporate bonds | Corporate bonds | 30 | 999 | 0 | 1,029 | 28 | 908 | 936 | Corporate bonds | 39 | 1,213 | — | 1,252 | 28 | 908 | 936 | ||||||||||||||||||||||||||||||||||||
Derivatives relating to: 5 | Derivatives relating to: 5 | Derivatives relating to: 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rates | Interest rates | 0 | 178 | 0 | 178 | 0 | 44 | 44 | Interest rates | — | 182 | — | 182 | — | 44 | 44 | ||||||||||||||||||||||||||||||||||||
Foreign currency | Foreign currency | 0 | 58 | 0 | 58 | 0 | 113 | 113 | Foreign currency | — | 138 | — | 138 | — | 113 | 113 | ||||||||||||||||||||||||||||||||||||
Commodities | Commodities | 12 | 499 | 0 | 511 | 8 | 173 | 181 | Commodities | 20 | 527 | — | 547 | 8 | 173 | 181 | ||||||||||||||||||||||||||||||||||||
Total assets at fair value | Total assets at fair value | $ | 74 | $ | 3,805 | $ | 0 | $ | 3,879 | $ | 76 | $ | 3,445 | $ | 3,521 | Total assets at fair value | $ | 84 | $ | 4,301 | $ | — | $ | 4,385 | $ | 76 | $ | 3,445 | $ | 3,521 | ||||||||||||||||||||||
Liabilities at fair value: | Liabilities at fair value: | Liabilities at fair value: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt including debt due within one year 6 | Long-term debt including debt due within one year 6 | $ | 0 | $ | 18,682 | $ | 0 | $ | 18,682 | $ | 0 | $ | 20,604 | $ | 20,604 | Long-term debt including debt due within one year 6 | $ | — | $ | 16,970 | $ | — | $ | 16,970 | $ | — | $ | 20,604 | $ | 20,604 | ||||||||||||||||||||||
Guarantee liability 7 | Guarantee liability 7 | 0 | 0 | 230 | 230 | 0 | 0 | 0 | Guarantee liability 7 | — | — | 225 | 225 | — | — | — | ||||||||||||||||||||||||||||||||||||
Derivatives relating to: 5 | Derivatives relating to: 5 | Derivatives relating to: 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rates | Interest rates | 0 | 364 | 0 | 364 | 0 | 185 | 185 | Interest rates | — | 348 | — | 348 | — | 185 | 185 | ||||||||||||||||||||||||||||||||||||
Foreign currency | Foreign currency | 0 | 105 | 0 | 105 | 0 | 128 | 128 | Foreign currency | — | 167 | — | 167 | — | 128 | 128 | ||||||||||||||||||||||||||||||||||||
Commodities | Commodities | 27 | 441 | 0 | 468 | 7 | 201 | 208 | Commodities | 47 | 429 | — | 476 | 7 | 201 | 208 | ||||||||||||||||||||||||||||||||||||
Total liabilities at fair value | Total liabilities at fair value | $ | 27 | $ | 19,592 | $ | 230 | $ | 19,849 | $ | 7 | $ | 21,118 | $ | 21,125 | Total liabilities at fair value | $ | 47 | $ | 17,914 | $ | 225 | $ | 18,186 | $ | 7 | $ | 21,118 | $ | 21,125 |
Assets and Liabilities of Consolidated VIEs | Assets and Liabilities of Consolidated VIEs | Jun 30, 2021 | Dec 31, 2020 | Assets and Liabilities of Consolidated VIEs | Sep 30, 2021 | Dec 31, 2020 | In millions | |||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 36 | $ | 26 | Cash and cash equivalents | $ | 49 | $ | 26 | ||||||
Other current assets | Other current assets | 39 | 44 | Other current assets | 38 | 44 | ||||||||||
Net property | Net property | 204 | 232 | Net property | 187 | 232 | ||||||||||
Other noncurrent assets | Other noncurrent assets | 16 | 17 | Other noncurrent assets | 15 | 17 | ||||||||||
Total assets 1 | Total assets 1 | $ | 295 | $ | 319 | Total assets 1 | $ | 289 | $ | 319 | ||||||
Current liabilities | Current liabilities | $ | 57 | $ | 73 | Current liabilities | $ | 51 | $ | 73 | ||||||
Long-term debt | Long-term debt | 5 | 6 | Long-term debt | 4 | 6 | ||||||||||
Other noncurrent obligations | Other noncurrent obligations | 16 | 18 | Other noncurrent obligations | 14 | 18 | ||||||||||
Total liabilities 2 | Total liabilities 2 | $ | 78 | $ | 97 | Total liabilities 2 | $ | 69 | $ | 97 |
Carrying Amounts of Assets Related to Nonconsolidated VIEs | Carrying Amounts of Assets Related to Nonconsolidated VIEs | Jun 30, 2021 | Dec 31, 2020 | Carrying Amounts of Assets Related to Nonconsolidated VIEs | Sep 30, 2021 | Dec 31, 2020 | ||||||||||||||||
In millions | In millions | Description of asset | In millions | Description of asset | ||||||||||||||||||
Silicon joint ventures | Silicon joint ventures | Equity method investments 1 | $ | 110 | $ | 107 | Silicon joint ventures | Equity method investments 1 | $ | 113 | $ | 107 |
Cash Dividends Declared and Paid | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
TDCC Cash Dividends Declared and Paid | TDCC Cash Dividends Declared and Paid | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | |||||||||||||||||||||
In millions | In millions | In millions | ||||||||||||||||||||||||||
Cash dividends declared and paid | Cash dividends declared and paid | $ | 739 | $ | 529 | $ | 1,442 | $ | 1,172 | Cash dividends declared and paid | $ | 919 | $ | 513 | $ | 2,361 | $ | 1,685 |
Segment Information | Segment Information | Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Materials & Coatings | Corp. | Total | Segment Information | Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Materials & Coatings | Corp. | Total | ||||||||||||||||||||||
In millions | In millions | In millions | ||||||||||||||||||||||||||||||||
Three months ended Jun 30, 2021 | ||||||||||||||||||||||||||||||||||
Three months ended Sep 30, 2021 | Three months ended Sep 30, 2021 | |||||||||||||||||||||||||||||||||
Net sales | Net sales | $ | 7,121 | $ | 4,215 | $ | 2,465 | $ | 84 | $ | 13,885 | Net sales | $ | 7,736 | $ | 4,481 | $ | 2,526 | $ | 94 | $ | 14,837 | ||||||||||||
Equity in earnings of nonconsolidated affiliates | Equity in earnings of nonconsolidated affiliates | $ | 130 | $ | 144 | $ | 0 | $ | 4 | $ | 278 | Equity in earnings of nonconsolidated affiliates | $ | 124 | $ | 122 | $ | 3 | $ | — | $ | 249 | ||||||||||||
Dow Inc. Operating EBIT 1 | Dow Inc. Operating EBIT 1 | $ | 2,014 | $ | 648 | $ | 225 | $ | (59) | $ | 2,828 | Dow Inc. Operating EBIT 1 | $ | 1,954 | $ | 713 | $ | 284 | $ | (65) | $ | 2,886 | ||||||||||||
Three months ended Jun 30, 2020 | ||||||||||||||||||||||||||||||||||
Three months ended Sep 30, 2020 | Three months ended Sep 30, 2020 | |||||||||||||||||||||||||||||||||
Net sales | Net sales | $ | 4,001 | $ | 2,417 | $ | 1,855 | $ | 81 | $ | 8,354 | Net sales | $ | 4,565 | $ | 3,058 | $ | 2,002 | $ | 87 | $ | 9,712 | ||||||||||||
Equity in earnings (losses) of nonconsolidated affiliates | Equity in earnings (losses) of nonconsolidated affiliates | $ | 20 | $ | (113) | $ | 2 | $ | (4) | $ | (95) | Equity in earnings (losses) of nonconsolidated affiliates | $ | 71 | $ | (13) | $ | 1 | $ | 1 | $ | 60 | ||||||||||||
Dow Inc. Operating EBIT 1 | Dow Inc. Operating EBIT 1 | $ | 318 | $ | (220) | $ | 27 | $ | (68) | $ | 57 | Dow Inc. Operating EBIT 1 | $ | 647 | $ | 104 | $ | 75 | $ | (65) | $ | 761 | ||||||||||||
Six months ended Jun 30, 2021 | ||||||||||||||||||||||||||||||||||
Nine months ended Sep 30, 2021 | Nine months ended Sep 30, 2021 | |||||||||||||||||||||||||||||||||
Net sales | Net sales | $ | 13,203 | $ | 7,822 | $ | 4,588 | $ | 154 | $ | 25,767 | Net sales | $ | 20,939 | $ | 12,303 | $ | 7,114 | $ | 248 | $ | 40,604 | ||||||||||||
Equity in earnings of nonconsolidated affiliates | Equity in earnings of nonconsolidated affiliates | $ | 236 | $ | 259 | $ | 2 | $ | 5 | $ | 502 | Equity in earnings of nonconsolidated affiliates | $ | 360 | $ | 381 | $ | 5 | $ | 5 | $ | 751 | ||||||||||||
Dow Inc. Operating EBIT 1 | Dow Inc. Operating EBIT 1 | $ | 3,242 | $ | 974 | $ | 287 | $ | (121) | $ | 4,382 | Dow Inc. Operating EBIT 1 | $ | 5,196 | $ | 1,687 | $ | 571 | $ | (186) | $ | 7,268 | ||||||||||||
Six months ended Jun 30, 2020 | ||||||||||||||||||||||||||||||||||
Nine months ended Sep 30, 2020 | Nine months ended Sep 30, 2020 | |||||||||||||||||||||||||||||||||
Net sales | Net sales | $ | 8,610 | $ | 5,462 | $ | 3,920 | $ | 132 | $ | 18,124 | Net sales | $ | 13,175 | $ | 8,520 | $ | 5,922 | $ | 219 | $ | 27,836 | ||||||||||||
Equity in earnings (losses) of nonconsolidated affiliates | Equity in earnings (losses) of nonconsolidated affiliates | $ | 25 | $ | (189) | $ | 3 | $ | (23) | $ | (184) | Equity in earnings (losses) of nonconsolidated affiliates | $ | 96 | $ | (202) | $ | 4 | $ | (22) | $ | (124) | ||||||||||||
Dow Inc. Operating EBIT 1 | Dow Inc. Operating EBIT 1 | $ | 898 | $ | (45) | $ | 189 | $ | (142) | $ | 900 | Dow Inc. Operating EBIT 1 | $ | 1,545 | $ | 59 | $ | 264 | $ | (207) | $ | 1,661 |
Reconciliation of "Net income (loss)" to Operating EBIT | Reconciliation of "Net income (loss)" to Operating EBIT | Three Months Ended | Six Months Ended | Reconciliation of "Net income (loss)" to Operating EBIT | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||
Net income (loss) | Net income (loss) | $ | 1,932 | $ | (217) | $ | 2,938 | $ | 41 | Net income (loss) | $ | 1,706 | $ | (1) | $ | 4,644 | $ | 40 | ||||||||||
+ Provision for income taxes | + Provision for income taxes | 524 | 34 | 841 | 172 | + Provision for income taxes | 542 | 43 | 1,383 | 215 | ||||||||||||||||||
Income (loss) before income taxes | $ | 2,456 | $ | (183) | $ | 3,779 | $ | 213 | ||||||||||||||||||||
Income before income taxes | Income before income taxes | $ | 2,248 | $ | 42 | $ | 6,027 | $ | 255 | |||||||||||||||||||
- Interest income | - Interest income | 13 | 6 | 21 | 21 | - Interest income | 14 | 6 | 35 | 27 | ||||||||||||||||||
+ Interest expense and amortization of debt discount | + Interest expense and amortization of debt discount | 187 | 200 | 383 | 415 | + Interest expense and amortization of debt discount | 178 | 202 | 561 | 617 | ||||||||||||||||||
- Significant items | - Significant items | (198) | (46) | (241) | (293) | - Significant items | (474) | (523) | (715) | (816) | ||||||||||||||||||
Operating EBIT | Operating EBIT | $ | 2,828 | $ | 57 | $ | 4,382 | $ | 900 | Operating EBIT | $ | 2,886 | $ | 761 | $ | 7,268 | $ | 1,661 |
Significant Items by Segment | Significant Items by Segment | Three Months Ended Jun 30, 2021 | Six Months Ended Jun 30, 2021 | Significant Items by Segment | Three Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Mat. & Coatings | Corp. | Total | Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Mat. & Coatings | Corp. | Total | Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Mat. & Coatings | Corp. | Total | Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Mat. & Coatings | Corp. | Total | |||||||||||||||||||||||||||||||||||||||||||||
In millions | In millions | In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Digitalization program costs 1 | Digitalization program costs 1 | $ | 0 | $ | 0 | $ | 0 | $ | (48) | $ | (48) | $ | 0 | $ | 0 | $ | 0 | $ | (81) | $ | (81) | Digitalization program costs 1 | $ | — | $ | — | $ | — | $ | (40) | $ | (40) | $ | — | $ | — | $ | — | $ | (121) | $ | (121) | ||||||||||||||||||||||
Restructuring, implementation costs and asset related charges - net 2 | Restructuring, implementation costs and asset related charges - net 2 | (8) | (1) | (10) | (24) | (43) | (8) | (1) | (10) | (34) | (53) | Restructuring, implementation costs and asset related charges - net 2 | — | — | — | (16) | (16) | (8) | (1) | (10) | (50) | (69) | ||||||||||||||||||||||||||||||||||||||||||
Loss on early extinguishment of debt 3 | Loss on early extinguishment of debt 3 | 0 | 0 | 0 | (102) | (102) | 0 | 0 | 0 | (102) | (102) | Loss on early extinguishment of debt 3 | — | — | — | (472) | (472) | — | — | — | (574) | (574) | ||||||||||||||||||||||||||||||||||||||||||
Indemnification and other transaction related costs 4 | 0 | 0 | 0 | (5) | (5) | 0 | 0 | 0 | (5) | (5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Litigation related charges, awards and adjustments 4 | Litigation related charges, awards and adjustments 4 | — | 54 | — | — | 54 | — | 54 | — | — | 54 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Indemnification and other transaction related costs 5 | Indemnification and other transaction related costs 5 | — | — | — | — | — | — | — | — | (5) | (5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | (8) | $ | (1) | $ | (10) | $ | (179) | $ | (198) | $ | (8) | $ | (1) | $ | (10) | $ | (222) | $ | (241) | Total | $ | — | $ | 54 | $ | — | $ | (528) | $ | (474) | $ | (8) | $ | 53 | $ | (10) | $ | (750) | $ | (715) |
Significant Items by Segment | Significant Items by Segment | Three Months Ended Jun 30, 2020 | Six Months Ended Jun 30, 2020 | Significant Items by Segment | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Mat. & Coatings | Corp. | Total | Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Mat. & Coatings | Corp. | Total | Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Mat. & Coatings | Corp. | Total | Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Mat. & Coatings | Corp. | Total | |||||||||||||||||||||||||||||||||||||||||||||
In millions | In millions | In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Integration and separation costs 1 | Integration and separation costs 1 | $ | 0 | $ | 0 | $ | 0 | $ | (46) | $ | (46) | $ | 0 | $ | 0 | $ | 0 | $ | (111) | $ | (111) | Integration and separation costs 1 | $ | — | $ | — | $ | — | $ | (63) | $ | (63) | $ | — | $ | — | $ | — | $ | (174) | $ | (174) | ||||||||||||||||||||||
Restructuring, implementation costs and asset-related charges, net 2 | Restructuring, implementation costs and asset-related charges, net 2 | (6) | 0 | 0 | 0 | (6) | (12) | 0 | 0 | (90) | (102) | Restructuring, implementation costs and asset-related charges, net 2 | (18) | (22) | (189) | (388) | (617) | (30) | (22) | (189) | (478) | (719) | ||||||||||||||||||||||||||||||||||||||||||
Litigation related charges, awards and adjustments 3 | Litigation related charges, awards and adjustments 3 | 6 | 0 | 0 | 0 | 6 | 6 | 0 | 0 | 0 | 6 | Litigation related charges, awards and adjustments 3 | — | — | — | — | — | 6 | — | — | — | 6 | ||||||||||||||||||||||||||||||||||||||||||
Loss on early extinguishment of debt 4 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (86) | (86) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net gain on divestitures 4 | Net gain on divestitures 4 | 35 | — | — | 185 | 220 | 35 | — | — | 185 | 220 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on early extinguishment of debt 5 | Loss on early extinguishment of debt 5 | — | — | — | (63) | (63) | — | — | — | (149) | (149) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 0 | $ | 0 | $ | 0 | $ | (46) | $ | (46) | $ | (6) | $ | 0 | $ | 0 | $ | (287) | $ | (293) | Total | $ | 17 | $ | (22) | $ | (189) | $ | (329) | $ | (523) | $ | 11 | $ | (22) | $ | (189) | $ | (616) | $ | (816) |
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
Selected Financial Data - Dow Inc. | Selected Financial Data - Dow Inc. | Three Months Ended | Six Months Ended | Selected Financial Data - Dow Inc. | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||
Net sales | Net sales | $ | 13,885 | $ | 8,354 | $ | 25,767 | $ | 18,124 | Net sales | $ | 14,837 | $ | 9,712 | $ | 40,604 | $ | 27,836 | ||||||||||
Cost of sales ("COS") | Cost of sales ("COS") | $ | 10,740 | $ | 7,610 | $ | 20,802 | $ | 15,840 | Cost of sales ("COS") | $ | 11,611 | $ | 8,371 | $ | 32,413 | $ | 24,211 | ||||||||||
Percent of net sales | Percent of net sales | 77.3 | % | 91.1 | % | 80.7 | % | 87.4 | % | Percent of net sales | 78.3 | % | 86.2 | % | 79.8 | % | 87.0 | % | ||||||||||
Research and development ("R&D") expenses | Research and development ("R&D") expenses | $ | 228 | $ | 182 | $ | 422 | $ | 361 | Research and development ("R&D") expenses | $ | 210 | $ | 193 | $ | 632 | $ | 554 | ||||||||||
Percent of net sales | Percent of net sales | 1.6 | % | 2.2 | % | 1.6 | % | 2.0 | % | Percent of net sales | 1.4 | % | 2.0 | % | 1.6 | % | 2.0 | % | ||||||||||
Selling, general and administrative ("SG&A") expenses | Selling, general and administrative ("SG&A") expenses | $ | 440 | $ | 357 | $ | 806 | $ | 691 | Selling, general and administrative ("SG&A") expenses | $ | 403 | $ | 372 | $ | 1,209 | $ | 1,063 | ||||||||||
Percent of net sales | Percent of net sales | 3.2 | % | 4.3 | % | 3.1 | % | 3.8 | % | Percent of net sales | 2.7 | % | 3.8 | % | 3.0 | % | 3.8 | % | ||||||||||
Effective tax rate | Effective tax rate | 21.3 | % | (18.6) | % | 22.3 | % | 80.8 | % | Effective tax rate | 24.1 | % | 102.4 | % | 22.9 | % | 84.3 | % | ||||||||||
Net income (loss) available for Dow Inc. common stockholders | Net income (loss) available for Dow Inc. common stockholders | $ | 1,901 | $ | (225) | $ | 2,892 | $ | 14 | Net income (loss) available for Dow Inc. common stockholders | $ | 1,683 | $ | (25) | $ | 4,575 | $ | (11) |
Selected Financial Data - TDCC | Selected Financial Data - TDCC | Three Months Ended | Six Months Ended | Selected Financial Data - TDCC | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||
Net sales | Net sales | $ | 13,885 | $ | 8,354 | $ | 25,767 | $ | 18,124 | Net sales | $ | 14,837 | $ | 9,712 | $ | 40,604 | $ | 27,836 | ||||||||||
COS | COS | $ | 10,739 | $ | 7,608 | $ | 20,800 | $ | 15,838 | COS | $ | 11,610 | $ | 8,371 | $ | 32,410 | $ | 24,209 | ||||||||||
Percent of net sales | Percent of net sales | 77.3 | % | 91.1 | % | 80.7 | % | 87.4 | % | Percent of net sales | 78.3 | % | 86.2 | % | 79.8 | % | 87.0 | % | ||||||||||
R&D expenses | R&D expenses | $ | 228 | $ | 182 | $ | 422 | $ | 361 | R&D expenses | $ | 210 | $ | 193 | $ | 632 | $ | 554 | ||||||||||
Percent of net sales | Percent of net sales | 1.6 | % | 2.2 | % | 1.6 | % | 2.0 | % | Percent of net sales | 1.4 | % | 2.0 | % | 1.6 | % | 2.0 | % | ||||||||||
SG&A expenses | SG&A expenses | $ | 440 | $ | 356 | $ | 806 | $ | 690 | SG&A expenses | $ | 403 | $ | 372 | $ | 1,209 | $ | 1,062 | ||||||||||
Percent of net sales | Percent of net sales | 3.2 | % | 4.3 | % | 3.1 | % | 3.8 | % | Percent of net sales | 2.7 | % | 3.8 | % | 3.0 | % | 3.8 | % | ||||||||||
Effective tax rate | Effective tax rate | 21.1 | % | (18.6) | % | 22.2 | % | 80.8 | % | Effective tax rate | 24.2 | % | 102.4 | % | 22.9 | % | 84.3 | % | ||||||||||
Net income (loss) available for The Dow Chemical Company common stockholder | Net income (loss) available for The Dow Chemical Company common stockholder | $ | 1,914 | $ | (225) | $ | 2,897 | $ | 14 | Net income (loss) available for The Dow Chemical Company common stockholder | $ | 1,679 | $ | (25) | $ | 4,576 | $ | (11) |
Summary of Sales Results | Summary of Sales Results | Three Months Ended | Six Months Ended | Summary of Sales Results | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||
Net sales | Net sales | $ | 13,885 | $ | 8,354 | $ | 25,767 | $ | 18,124 | Net sales | $ | 14,837 | $ | 9,712 | $ | 40,604 | $ | 27,836 |
Sales Variances by Operating Segment and Geographic Region | Sales Variances by Operating Segment and Geographic Region | Sales Variances by Operating Segment and Geographic Region | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended Jun 30, 2021 | Six Months Ended June 30, 2021 | Three Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Local Price & Product Mix | Currency | Volume | Total | Local Price & Product Mix | Currency | Volume | Total | Local Price & Product Mix | Currency | Volume | Total | Local Price & Product Mix | Currency | Volume | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
Percentage change from prior year | Percentage change from prior year | Total | Percentage change from prior year | Local Price & Product Mix | Currency | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Packaging & Specialty Plastics | Packaging & Specialty Plastics | 70 | % | 4 | % | 4 | % | 78 | % | 46 | % | 3 | % | 4 | % | 53 | % | Packaging & Specialty Plastics | 63 | % | 1 | % | 5 | % | 69 | % | 52 | % | 3 | % | 4 | % | 59 | % | ||||||||||||||||||||||||||||||
Industrial Intermediates & Infrastructure | Industrial Intermediates & Infrastructure | 53 | 6 | 15 | 74 | 36 | 4 | 3 | 43 | Industrial Intermediates & Infrastructure | 49 | 2 | (4) | 47 | 41 | 3 | — | 44 | ||||||||||||||||||||||||||||||||||||||||||||||
Performance Materials & Coatings | Performance Materials & Coatings | 16 | 4 | 13 | 33 | 10 | 3 | 4 | 17 | Performance Materials & Coatings | 23 | 1 | 2 | 26 | 14 | 3 | 3 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 53 | % | 4 | % | 9 | % | 66 | % | 34 | % | 4 | % | 4 | % | 42 | % | Total | 50 | % | 1 | % | 2 | % | 53 | % | 40 | % | 3 | % | 3 | % | 46 | % | ||||||||||||||||||||||||||||||
Total, excluding the Hydrocarbons & Energy business | Total, excluding the Hydrocarbons & Energy business | 45 | % | 4 | % | 8 | % | 57 | % | 31 | % | 4 | % | 2 | % | 37 | % | Total, excluding the Hydrocarbons & Energy business | 45 | % | 1 | % | (1) | % | 45 | % | 36 | % | 3 | % | — | % | 39 | % | ||||||||||||||||||||||||||||||
U.S. & Canada | U.S. & Canada | 55 | % | — | % | 12 | % | 67 | % | 36 | % | — | % | 2 | % | 38 | % | U.S. & Canada | 56 | % | — | % | 5 | % | 61 | % | 44 | % | — | % | 2 | % | 46 | % | ||||||||||||||||||||||||||||||
EMEAI | EMEAI | 63 | 11 | 14 | 88 | 38 | 9 | 7 | 54 | EMEAI | 55 | 2 | 3 | 60 | 45 | 6 | 5 | 56 | ||||||||||||||||||||||||||||||||||||||||||||||
Asia Pacific | Asia Pacific | 28 | 4 | (4) | 28 | 21 | 4 | 3 | 28 | Asia Pacific | 28 | 2 | (6) | 24 | 24 | 3 | — | 27 | ||||||||||||||||||||||||||||||||||||||||||||||
Latin America | Latin America | 70 | — | 10 | 80 | 45 | — | 2 | 47 | Latin America | 60 | — | (1) | 59 | 51 | — | — | 51 | ||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 53 | % | 4 | % | 9 | % | 66 | % | 34 | % | 4 | % | 4 | % | 42 | % | Total | 50 | % | 1 | % | 2 | % | 53 | % | 40 | % | 3 | % | 3 | % | 46 | % |
Packaging & Specialty Plastics | Packaging & Specialty Plastics | Three Months Ended | Six Months Ended | Packaging & Specialty Plastics | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||
Net sales | Net sales | $ | 7,121 | $ | 4,001 | $ | 13,203 | $ | 8,610 | Net sales | $ | 7,736 | $ | 4,565 | $ | 20,939 | $ | 13,175 | ||||||||||
Operating EBIT | Operating EBIT | $ | 2,014 | $ | 318 | $ | 3,242 | $ | 898 | Operating EBIT | $ | 1,954 | $ | 647 | $ | 5,196 | $ | 1,545 | ||||||||||
Equity earnings | Equity earnings | $ | 130 | $ | 20 | $ | 236 | $ | 25 | Equity earnings | $ | 124 | $ | 71 | $ | 360 | $ | 96 |
Packaging & Specialty Plastics | Packaging & Specialty Plastics | Three Months Ended | Six Months Ended | Packaging & Specialty Plastics | Three Months Ended | Nine Months Ended | ||||||||||
Percentage change from prior year | Percentage change from prior year | Jun 30, 2021 | Jun 30, 2021 | Percentage change from prior year | Sep 30, 2021 | Sep 30, 2021 | ||||||||||
Change in Net Sales from Prior Period due to: | Change in Net Sales from Prior Period due to: | Change in Net Sales from Prior Period due to: | ||||||||||||||
Local price & product mix | Local price & product mix | 70 | % | 46 | % | Local price & product mix | 63 | % | 52 | % | ||||||
Currency | Currency | 4 | 3 | Currency | 1 | 3 | ||||||||||
Volume | Volume | 4 | 4 | Volume | 5 | 4 | ||||||||||
Total | Total | 78 | % | 53 | % | Total | 69 | % | 59 | % |
Industrial Intermediates & Infrastructure | Industrial Intermediates & Infrastructure | Three Months Ended | Six Months Ended | Industrial Intermediates & Infrastructure | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||
Net sales | Net sales | $ | 4,215 | $ | 2,417 | $ | 7,822 | $ | 5,462 | Net sales | $ | 4,481 | $ | 3,058 | $ | 12,303 | $ | 8,520 | ||||||||||
Operating EBIT | Operating EBIT | $ | 648 | $ | (220) | $ | 974 | $ | (45) | Operating EBIT | $ | 713 | $ | 104 | $ | 1,687 | $ | 59 | ||||||||||
Equity earnings (losses) | Equity earnings (losses) | $ | 144 | $ | (113) | $ | 259 | $ | (189) | Equity earnings (losses) | $ | 122 | $ | (13) | $ | 381 | $ | (202) |
Industrial Intermediates & Infrastructure | Industrial Intermediates & Infrastructure | Three Months Ended | Six Months Ended | Industrial Intermediates & Infrastructure | Three Months Ended | Nine Months Ended | ||||||||||
Percentage change from prior year | Percentage change from prior year | Jun 30, 2021 | Jun 30, 2021 | Percentage change from prior year | Sep 30, 2021 | Sep 30, 2021 | ||||||||||
Change in Net Sales from Prior Period due to: | Change in Net Sales from Prior Period due to: | Change in Net Sales from Prior Period due to: | ||||||||||||||
Local price & product mix | Local price & product mix | 53 | % | 36 | % | Local price & product mix | 49 | % | 41 | % | ||||||
Currency | Currency | 6 | 4 | Currency | 2 | 3 | ||||||||||
Volume | Volume | 15 | 3 | Volume | (4) | — | ||||||||||
Total | Total | 74 | % | 43 | % | Total | 47 | % | 44 | % |
Performance Materials & Coatings | Performance Materials & Coatings | Three Months Ended | Six Months Ended | Performance Materials & Coatings | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||
Net sales | Net sales | $ | 2,465 | $ | 1,855 | $ | 4,588 | $ | 3,920 | Net sales | $ | 2,526 | $ | 2,002 | $ | 7,114 | $ | 5,922 | ||||||||||
Operating EBIT | Operating EBIT | $ | 225 | $ | 27 | $ | 287 | $ | 189 | Operating EBIT | $ | 284 | $ | 75 | $ | 571 | $ | 264 | ||||||||||
Equity earnings | Equity earnings | $ | — | $ | 2 | $ | 2 | $ | 3 | Equity earnings | $ | 3 | $ | 1 | $ | 5 | $ | 4 |
Performance Materials & Coatings | Performance Materials & Coatings | Three Months Ended | Six Months Ended | Performance Materials & Coatings | Three Months Ended | Nine Months Ended | ||||||||||
Percentage change from prior year | Percentage change from prior year | Jun 30, 2021 | Jun 30, 2021 | Percentage change from prior year | Sep 30, 2021 | Sep 30, 2021 | ||||||||||
Change in Net Sales from Prior Period due to: | Change in Net Sales from Prior Period due to: | Change in Net Sales from Prior Period due to: | ||||||||||||||
Local price & product mix | Local price & product mix | 16 | % | 10 | % | Local price & product mix | 23 | % | 14 | % | ||||||
Currency | Currency | 4 | 3 | Currency | 1 | 3 | ||||||||||
Volume | Volume | 13 | 4 | Volume | 2 | 3 | ||||||||||
Total | Total | 33 | % | 17 | % | Total | 26 | % | 20 | % |
Corporate | Corporate | Three Months Ended | Six Months Ended | Corporate | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
In millions | In millions | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | In millions | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||
Net sales | Net sales | $ | 84 | $ | 81 | $ | 154 | $ | 132 | Net sales | $ | 94 | $ | 87 | $ | 248 | $ | 219 | ||||||||||
Operating EBIT | Operating EBIT | $ | (59) | $ | (68) | $ | (121) | $ | (142) | Operating EBIT | $ | (65) | $ | (65) | $ | (186) | $ | (207) | ||||||||||
Equity earnings (losses) | Equity earnings (losses) | $ | 4 | $ | (4) | $ | 5 | $ | (23) | Equity earnings (losses) | $ | — | $ | 1 | $ | 5 | $ | (22) |
Cash Flow Summary | Cash Flow Summary | Dow Inc. | TDCC | Cash Flow Summary | Dow Inc. | TDCC | ||||||||||||||||||||||
Six Months Ended | Six Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||
Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2021 | Jun 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | In millions | ||||||||||||||||||||
Cash provided by (used for): | Cash provided by (used for): | Cash provided by (used for): | ||||||||||||||||||||||||||
Operating activities - continuing operations | Operating activities - continuing operations | $ | 1,793 | $ | 2,835 | $ | 1,912 | $ | 2,842 | Operating activities - continuing operations | $ | 4,512 | $ | 4,596 | $ | 4,634 | $ | 4,604 | ||||||||||
Operating activities - discontinued operations | Operating activities - discontinued operations | (80) | (6) | — | — | Operating activities - discontinued operations | (78) | — | — | — | ||||||||||||||||||
Operating activities | Operating activities | 1,713 | 2,829 | 1,912 | 2,842 | Operating activities | 4,434 | 4,596 | 4,634 | 4,604 | ||||||||||||||||||
Investing activities | Investing activities | (768) | (534) | (768) | (534) | Investing activities | (1,535) | (616) | (1,535) | (616) | ||||||||||||||||||
Financing activities | Financing activities | (2,500) | (879) | (2,699) | (892) | Financing activities | (4,974) | (1,809) | (5,174) | (1,817) | ||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | Effect of exchange rate changes on cash, cash equivalents and restricted cash | (12) | (66) | (12) | (66) | Effect of exchange rate changes on cash, cash equivalents and restricted cash | (57) | 4 | (57) | 4 | ||||||||||||||||||
Summary | Summary | Summary | ||||||||||||||||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | Increase (decrease) in cash, cash equivalents and restricted cash | (1,567) | 1,350 | (1,567) | 1,350 | Increase (decrease) in cash, cash equivalents and restricted cash | (2,132) | 2,175 | (2,132) | 2,175 | ||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | Cash, cash equivalents and restricted cash at beginning of period | 5,108 | 2,380 | 5,108 | 2,380 | Cash, cash equivalents and restricted cash at beginning of period | 5,108 | 2,380 | 5,108 | 2,380 | ||||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | Cash, cash equivalents and restricted cash at end of period | $ | 3,541 | $ | 3,730 | $ | 3,541 | $ | 3,730 | Cash, cash equivalents and restricted cash at end of period | $ | 2,976 | $ | 4,555 | $ | 2,976 | $ | 4,555 | ||||||||||
Less: Restricted cash and cash equivalents, included in "Other current assets" | Less: Restricted cash and cash equivalents, included in "Other current assets" | 50 | 6 | 50 | 6 | Less: Restricted cash and cash equivalents, included in "Other current assets" | 65 | 6 | 65 | 6 | ||||||||||||||||||
Cash and cash equivalents at end of period | Cash and cash equivalents at end of period | $ | 3,491 | $ | 3,724 | $ | 3,491 | $ | 3,724 | Cash and cash equivalents at end of period | $ | 2,911 | $ | 4,549 | $ | 2,911 | $ | 4,549 |
Net Working Capital | Net Working Capital | Dow Inc. | TDCC | Net Working Capital | Dow Inc. | TDCC | ||||||||||||||||||||||
Jun 30, 2021 | Dec 31, 2020 | Jun 30, 2021 | Dec 31, 2020 | Sep 30, 2021 | Dec 31, 2020 | Sep 30, 2021 | Dec 31, 2020 | |||||||||||||||||||||
In millions | In millions | In millions | ||||||||||||||||||||||||||
Current assets | Current assets | $ | 20,352 | $ | 19,084 | $ | 20,311 | $ | 18,998 | Current assets | $ | 20,393 | $ | 19,084 | $ | 20,359 | $ | 18,998 | ||||||||||
Current liabilities | Current liabilities | 12,308 | 11,108 | 12,012 | 10,574 | Current liabilities | 12,793 | 11,108 | 12,505 | 10,574 | ||||||||||||||||||
Net working capital | Net working capital | $ | 8,044 | $ | 7,976 | $ | 8,299 | $ | 8,424 | Net working capital | $ | 7,600 | $ | 7,976 | $ | 7,854 | $ | 8,424 | ||||||||||
Current ratio | Current ratio | 1.65:1 | 1.72:1 | 1.69:1 | 1.80:1 | Current ratio | 1.59:1 | 1.72:1 | 1.63:1 | 1.80:1 |
Working Capital Metrics | Three Months Ended | ||||||||||
Jun 30, 2021 | Mar 31, 2021 | Jun 30, 2020 | |||||||||
Days sales outstanding in trade receivables 1 | 39 | 39 | 50 | ||||||||
Days sales in inventory 2 | 56 | 53 | 72 | ||||||||
Days payables outstanding 3 | 55 | 53 | 68 |
Working Capital Metrics | Three Months Ended | ||||||||||
Sep 30, 2021 | Jun 30, 2021 | Sep 30, 2020 | |||||||||
Days sales outstanding in trade receivables | 41 | 39 | 43 | ||||||||
Days sales in inventory | 56 | 56 | 63 | ||||||||
Days payables outstanding | 58 | 55 | 58 |
Reconciliation of Free Cash Flow | Reconciliation of Free Cash Flow | Six Months Ended | Reconciliation of Free Cash Flow | Nine Months Ended | ||||||||||||
Jun 30, 2021 | Jun 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | In millions | ||||||||||||
Cash provided by operating activities - continuing operations (GAAP) | Cash provided by operating activities - continuing operations (GAAP) | $ | 1,793 | $ | 2,835 | Cash provided by operating activities - continuing operations (GAAP) | $ | 4,512 | $ | 4,596 | ||||||
Capital expenditures | Capital expenditures | (622) | (668) | Capital expenditures | (1,035) | (955) | ||||||||||
Free cash flow (non-GAAP) 1 | Free cash flow (non-GAAP) 1 | $ | 1,171 | $ | 2,167 | Free cash flow (non-GAAP) 1 | $ | 3,477 | $ | 3,641 |
Reconciliation of Cash Flow Conversion (Operating EBITDA to Cash Flow from Operations) | Reconciliation of Cash Flow Conversion (Operating EBITDA to Cash Flow from Operations) | Six Months Ended | Reconciliation of Cash Flow Conversion (Operating EBITDA to Cash Flow from Operations) | Nine Months Ended | ||||||||||||
Jun 30, 2021 | Jun 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | In millions | ||||||||||||
Net income (GAAP) | Net income (GAAP) | $ | 2,938 | $ | 41 | Net income (GAAP) | $ | 4,644 | $ | 40 | ||||||
+ Provision for income taxes | + Provision for income taxes | 841 | 172 | + Provision for income taxes | 1,383 | 215 | ||||||||||
Income before income taxes | Income before income taxes | $ | 3,779 | $ | 213 | Income before income taxes | $ | 6,027 | $ | 255 | ||||||
- Interest income | - Interest income | 21 | 21 | - Interest income | 35 | 27 | ||||||||||
+ Interest expense and amortization of debt discount | + Interest expense and amortization of debt discount | 383 | 415 | + Interest expense and amortization of debt discount | 561 | 617 | ||||||||||
- Significant items ¹ | - Significant items ¹ | (241) | (293) | - Significant items ¹ | (715) | (816) | ||||||||||
Operating EBIT (non-GAAP) | Operating EBIT (non-GAAP) | $ | 4,382 | $ | 900 | Operating EBIT (non-GAAP) | $ | 7,268 | $ | 1,661 | ||||||
+ Depreciation and amortization | + Depreciation and amortization | 1,462 | 1,424 | + Depreciation and amortization | 2,187 | 2,148 | ||||||||||
Operating EBITDA (non-GAAP) | Operating EBITDA (non-GAAP) | $ | 5,844 | $ | 2,324 | Operating EBITDA (non-GAAP) | $ | 9,455 | $ | 3,809 | ||||||
Cash provided by operating activities - continuing operations (GAAP) | Cash provided by operating activities - continuing operations (GAAP) | $ | 1,793 | $ | 2,835 | Cash provided by operating activities - continuing operations (GAAP) | $ | 4,512 | $ | 4,596 | ||||||
Cash flow conversion (Operating EBITDA to cash flow from operations) (non-GAAP) 2 | Cash flow conversion (Operating EBITDA to cash flow from operations) (non-GAAP) 2 | 30.7 | % | 122.0 | % | Cash flow conversion (Operating EBITDA to cash flow from operations) (non-GAAP) 2 | 47.7 | % | 120.7 | % |
Total Debt | Total Debt | Dow Inc. | TDCC | Total Debt | Dow Inc. | TDCC | ||||||||||||||||||||||
Jun 30, 2021 | Dec 31, 2020 | Jun 30, 2021 | Dec 31, 2020 | Sep 30, 2021 | Dec 31, 2020 | Sep 30, 2021 | Dec 31, 2020 | In millions | ||||||||||||||||||||
Notes payable | Notes payable | $ | 203 | $ | 156 | $ | 203 | $ | 156 | Notes payable | $ | 270 | $ | 156 | $ | 270 | $ | 156 | ||||||||||
Long-term debt due within one year | Long-term debt due within one year | 445 | 460 | 445 | 460 | Long-term debt due within one year | 291 | 460 | 291 | 460 | ||||||||||||||||||
Long-term debt | Long-term debt | 15,093 | 16,491 | 15,093 | 16,491 | Long-term debt | 14,027 | 16,491 | 14,027 | 16,491 | ||||||||||||||||||
Gross debt | Gross debt | $ | 15,741 | $ | 17,107 | $ | 15,741 | $ | 17,107 | Gross debt | $ | 14,588 | $ | 17,107 | $ | 14,588 | $ | 17,107 | ||||||||||
- Cash and cash equivalents | - Cash and cash equivalents | 3,491 | 5,104 | 3,491 | 5,104 | - Cash and cash equivalents | 2,911 | 5,104 | 2,911 | 5,104 | ||||||||||||||||||
- Marketable securities 1 | - Marketable securities 1 | 105 | 45 | 105 | 45 | - Marketable securities 1 | 141 | 45 | 141 | 45 | ||||||||||||||||||
Net debt | Net debt | $ | 12,145 | $ | 11,958 | $ | 12,145 | $ | 11,958 | Net debt | $ | 11,536 | $ | 11,958 | $ | 11,536 | $ | 11,958 | ||||||||||
Total equity | Total equity | $ | 16,153 | $ | 13,005 | $ | 16,523 | $ | 13,569 | Total equity | $ | 17,028 | $ | 13,005 | $ | 17,393 | $ | 13,569 | ||||||||||
Gross debt as a percent of total capitalization | Gross debt as a percent of total capitalization | 49.4 | % | 56.8 | % | 48.8 | % | 55.8 | % | Gross debt as a percent of total capitalization | 46.1 | % | 56.8 | % | 45.6 | % | 55.8 | % | ||||||||||
Net debt as a percent of total capitalization | Net debt as a percent of total capitalization | 42.9 | % | 47.9 | % | 42.4 | % | 46.8 | % | Net debt as a percent of total capitalization | 40.4 | % | 47.9 | % | 39.9 | % | 46.8 | % |
Credit Ratings | Long-Term Rating | Short-Term Rating | Outlook | ||||||||
Standard & Poor’s | BBB | A-2 | Stable | ||||||||
Moody’s Investors Service | Baa2 | P-2 | Stable | ||||||||
Fitch Ratings | BBB+ | F2 | Stable |
Dow Inc. Cash Dividends Declared and Paid | |||||||||||
Declaration Date | Record Date | Payment Date | Amount (per share) | ||||||||
February 11, 2021 | February 26, 2021 | March 12, 2021 | $ | 0.70 | |||||||
April 15, 2021 | May 28, 2021 | June 11, 2021 | $ | 0.70 | |||||||
August 12, 2021 | August 31, 2021 | September 10, 2021 | $ | 0.70 | |||||||
October 14, 2021 | November 30, 2021 | December 10, 2021 | $ | 0.70 |
Contractual Obligations at Jun 30, 2021 | Payments Due In | |||||||||||||||||||||||||||||||||
Contractual Obligations at Sep 30, 2021 | Contractual Obligations at Sep 30, 2021 | Payments Due In | ||||||||||||||||||||||||||||||||
In millions | In millions | 2021 | 2022-2023 | 2024-2025 | 2026 and beyond | Total | In millions | 2021 | 2022-2023 | 2024-2025 | 2026 and beyond | Total | ||||||||||||||||||||||
Long-term debt obligations 1 | $ | 291 | $ | 533 | $ | 694 | $ | 14,367 | $ | 15,885 | ||||||||||||||||||||||||
Pension and other postretirement benefits | $ | 169 | $ | 655 | $ | 649 | $ | 7,573 | $ | 9,046 | ||||||||||||||||||||||||
Long-term debt obligations 1 | Long-term debt obligations 1 | $ | 122 | $ | 536 | $ | 405 | $ | 13,568 | $ | 14,631 | |||||||||||||||||||||||
Expected cash requirements for interest 2 | Expected cash requirements for interest 2 | $ | 157 | $ | 1,226 | $ | 1,173 | $ | 7,907 | $ | 10,463 | |||||||||||||||||||||||
Pension and other postretirement benefits | Pension and other postretirement benefits | $ | 71 | $ | 655 | $ | 649 | $ | 7,367 | $ | 8,742 | |||||||||||||||||||||||
Operating leases 3 | Operating leases 3 | $ | 140 | $ | 785 | $ | 474 | $ | 744 | $ | 2,143 |
Asbestos-Related Claim Activity | Asbestos-Related Claim Activity | 2021 | 2020 | Asbestos-Related Claim Activity | 2021 | 2020 | ||||||||||
Claims unresolved at Jan 1 | Claims unresolved at Jan 1 | 9,126 | 11,117 | Claims unresolved at Jan 1 | 9,126 | 11,117 | ||||||||||
Claims filed | Claims filed | 2,081 | 2,194 | Claims filed | 3,177 | 3,623 | ||||||||||
Claims settled, dismissed or otherwise resolved | Claims settled, dismissed or otherwise resolved | (2,184) | (2,488) | Claims settled, dismissed or otherwise resolved | (3,340) | (5,099) | ||||||||||
Claims unresolved at Jun 30 | 9,023 | 10,823 | ||||||||||||||
Claims unresolved at Sep 30 | Claims unresolved at Sep 30 | 8,963 | 9,641 | |||||||||||||
Claimants with claims against both Union Carbide and Amchem | Claimants with claims against both Union Carbide and Amchem | (2,498) | (3,555) | Claimants with claims against both Union Carbide and Amchem | (2,312) | (3,168) | ||||||||||
Individual claimants at Jun 30 | 6,525 | 7,268 | ||||||||||||||
Individual claimants at Sep 30 | Individual claimants at Sep 30 | 6,651 | 6,473 |
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. CONTROLS AND PROCEDURES |
Dow Inc. and Subsidiaries The Dow Chemical Company and Subsidiaries PART II – OTHER INFORMATION |
ITEM 1. LEGAL PROCEEDINGS |
ITEM 1A. RISK FACTORS |
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
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 1 (In millions) | ||||||||||||
Period | Total number of shares purchased | Average price paid per share | ||||||||||||
April 2021 | 272,349 | $ | 62.79 | 272,349 | $ | 2,358 | ||||||||
May 2021 | 1,678,603 | $ | 67.90 | 1,678,603 | $ | 2,244 | ||||||||
June 2021 | 998,423 | $ | 69.03 | 998,423 | $ | 2,175 | ||||||||
Second quarter 2021 | 2,949,375 | $ | 67.81 | 2,949,375 | $ | 2,175 |
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 1 (In millions) | ||||||||||||
Period | Total number of shares purchased | Average price paid per share | ||||||||||||
July 2021 | 590,309 | $ | 61.57 | 590,309 | $ | 2,139 | ||||||||
August 2021 | 4,145,582 | $ | 62.42 | 4,145,582 | $ | 1,880 | ||||||||
September 2021 | 1,674,600 | $ | 62.64 | 1,674,600 | $ | 1,775 | ||||||||
Third quarter 2021 | 6,410,491 | $ | 62.40 | 6,410,491 | $ | 1,775 |
ITEM 4. MINE SAFETY DISCLOSURES |
ITEM 5. OTHER INFORMATION |
ITEM 6. EXHIBITS |
EXHIBIT NO. | DESCRIPTION | ||||||||||
4.3 | Dow Inc. agrees to provide the SEC, on request, copies of all other such indentures and instruments that define the rights of holders of long-term debt of Dow Inc. and its consolidated subsidiaries, including The Dow Chemical Company, pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K. | ||||||||||
23 * | Ankura Consulting Group, LLC's Consent. | ||||||||||
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 | The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | ||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | ||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | ||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | ||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | ||||||||||
104 | Cover Page Interactive Data File. The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
Dow Inc. The Dow Chemical Company and Subsidiaries Trademark Listing |
Dow Inc. and Subsidiaries The Dow Chemical Company and Subsidiaries Signature |
/s/ RONALD C. EDMONDS | ||
Ronald C. Edmonds Controller and Vice President of Controllers and Tax (Authorized Signatory and Principal Accounting Officer) |