Union Carbide 10-Q 22 Jul 22 2022 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2022	Jul. 22, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	1-1463
Entity Registrant Name	Union Carbide Corporation
Entity Incorporation, State or Country Code	NY
Entity Tax Identification Number	13-1421730
Entity Address, Address Line One	7501 STATE HIGHWAY 185 NORTH
Entity Address, City or Town	SEADRIFT
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77983
City Area Code	361
Local Phone Number	553-2997
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		935.51
Entity Central Index Key	0000100790
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false
Title of 12(b) Security	None

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Revenue from Contract with Customer, Including Assessed Tax	$ 42	$ 37	$ 103	$ 71
Net sales to related companies	1,426	1,289	2,944	2,258
Net trade sales	1,468	1,326	3,047	2,329
Cost of sales	1,309	1,208	2,524	2,245
Research and development expenses	7	6	14	12
Selling, general and administrative expenses	2	2	4	5
Sundry income (expense) - net	(14)	(18)	(28)	(33)
Interest Income, Other	2	0	3	1
Interest expense and amortization of debt discount	7	7	14	14
Income before income taxes	131	85	466	21
Provision for income taxes	30	20	110	5
Net Income Attributable to Union Carbide Corporation	$ 101	$ 65	$ 356	$ 16

Consolidated Statements of In_2

Consolidated Statements of Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Supplemental Income Statement Elements [Abstract]
Depreciation	$ 41	$ 42	$ 83	$ 83
Capital expenditures	$ 29	$ 30	$ 50	$ 53

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income attributable to Union Carbide Corporation	$ 101	$ 65	$ 356	$ 16
Cumulative translation adjustments	2	0	0	0
Pension and other postretirement benefit plans	19	20	38	104
Total other comprehensive income	21	20	38	104
Comprehensive income attributable to Union Carbide Corporation	$ 122	$ 85	$ 394	$ 120

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Cash and Cash Equivalents, at Carrying Value	$ 10	$ 11
Trade (net of allowance for doubtful receivables 2020: $-; 2019: $-)	52	49
Related companies	1,285	1,394
Other	31	29
Income taxes receivable	211	306
Notes receivable from related companies	1,115	988
Inventories	290	250
Other current assets	36	41
Total current assets	3,030	3,068
Investments in related companies	237	237
Other investments	22	22
Noncurrent receivables	87	83
Noncurrent receivables from related companies	67	68
Total investments	413	410
Property	7,208	7,168
Less accumulated depreciation	6,035	5,960
Net property	1,173	1,208
Intangible assets (net of accumulated amortization 2020: $92; 2019: $90)	10	13
Operating lease right-of-use assets	112	122
Deferred Tax Assets, Deferred Income	268	288
Deferred charges and other assets	41	47
Total other assets	431	470
Total Assets	5,047	5,156
Notes payable - related companies	30	30
Long-term debt due within one year	132	3
Trade	396	362
Related companies	686	622
Other	41	27
Operating lease liabilities - current	20	20
Income taxes payable	30	25
Asbestos-related liabilities - current	90	85
Accrued and other current liabilities	142	171
Total current liabilities	1,567	1,345
Long-Term Debt	262	392
Pension and other postretirement benefits - noncurrent	445	491
Asbestos-related liabilities - noncurrent	887	931
Operating lease liabilities - noncurrent	93	103
Other noncurrent obligations	256	230
Liabilities, Other than Long-term Debt, Noncurrent	1,681	1,755
Common stock (authorized: 1,000 shares of $0.01 par value each; issued: 935.51 shares)	0	0
Additional paid-in capital	141	141
Retained earnings	2,909	3,074
Accumulated other comprehensive loss	(1,513)	(1,551)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	1,537	1,664
Total Liabilities and Equity	$ 5,047	$ 5,156

Consolidated Balance Sheets Par

Consolidated Balance Sheets Parentheticals - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 0	$ 0
Finite-Lived Intangible Assets, Accumulated Amortization	$ 106	$ 103
Common stock, shares authorized	1,000	1,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares issued	935.51	935.51

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Statement of Cash Flows [Abstract]
Net income attributable to Union Carbide Corporation	$ 356	$ 16
Depreciation and amortization	101	102
Provision (credit) for deferred income tax	8	25
Net periodic pension benefit cost	4	(2)
Pension contributions	(1)	(548)
Other Noncash Income	(1)	(1)
Accounts and notes receivable	(5)	(6)
Related company receivables	(18)	499
Inventories	(40)	(38)
Accounts payable	48	96
Related company payables	64	(31)
Asbestos-related payments	(39)	(38)
Increase (Decrease) in Other Operating Assets and Liabilities, Net	93	23
Cash provided by operating activities	570	97
Capital expenditures	(50)	(53)
Change in noncurrent receivable from related company	1	(3)
Cash used for investing activities	(49)	(56)
Dividends paid to parent	(521)	(40)
Repayments of Long-term Debt	1	1
Cash used for financing activities	(522)	(41)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect, Total	(1)	0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning Balance	11	11
Cash and cash equivalents at end of period	$ 10	$ 11

Consolidated Statements of Equi

Consolidated Statements of Equity - USD ($) $ in Millions	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		$ 0	$ 141	$ 2,987	$ (1,770)
Net income attributable to Union Carbide Corporation	$ 16			16
Dividends, Common Stock				(40)
Other Comprehensive Income (Loss), Net of Tax	(104)				104
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		0	141	2,898	(1,686)
Net income attributable to Union Carbide Corporation	65			65
Dividends, Common Stock				0
Other Comprehensive Income (Loss), Net of Tax	(20)				20
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	1,438	0	141	2,963	(1,666)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	1,664	0	141	3,074	(1,551)
Net income attributable to Union Carbide Corporation	356			356
Dividends, Common Stock				(521)
Other Comprehensive Income (Loss), Net of Tax	(38)				38
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		0	141	3,104	(1,534)
Net income attributable to Union Carbide Corporation	101			101
Dividends, Common Stock				(296)
Other Comprehensive Income (Loss), Net of Tax	(21)				21
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 1,537	$ 0	$ 141	$ 2,909	$ (1,513)

CONSOLIDATED FINANCIAL STATEMEN

CONSOLIDATED FINANCIAL STATEMENTS	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	CONSOLIDATED FINANCIAL STATEMENTS Basis of Presentation The unaudited interim consolidated financial statements of Union Carbide Corporation and its subsidiaries (the "Corporation" or "UCC") were prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and reflect all adjustments (including normal recurring accruals) which, in the opinion of management, are considered necessary for the fair presentation of the results for the periods presented. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2021 ("2021 10-K"). The Corporation is a wholly owned subsidiary of The Dow Chemical Company ("TDCC"). In accordance with the accounting guidance for earnings per share, the presentation of earnings per share is not required in financial statements of wholly owned subsidiaries. The Corporation’s business activities comprise components of TDCC’s global operations rather than stand-alone operations. TDCC conducts its worldwide operations through global businesses. Because there are no separate reportable business segments for UCC under the accounting guidance related to segment reporting and no detailed business information is provided to a chief operating decision maker regarding the Corporation’s stand-alone operations, the Corporation’s results are reported as a single operating segment. Intercompany transactions and balances are eliminated in consolidation. Transactions with the Corporation’s parent company, TDCC, and other subsidiaries of TDCC, have been reflected as related company transactions in the consolidated financial statements. See Note 10 for additional information.

REVENUE FROM CONTRACT WITH CUST

REVENUE FROM CONTRACT WITH CUSTOMERS	6 Months Ended
	Jun. 30, 2022
Revenue Recognition and Deferred Revenue [Abstract]
Revenue from Contract with Customer [Text Block]	REVENUE Substantially all of the Corporation's revenue is generated by sales of products, primarily to TDCC. Products are sold to and purchased from TDCC at prices determined in accordance with the terms of an agreement between UCC and TDCC. The Corporation sells its products to TDCC to simplify the customer interface process. The Corporation’s contract liabilities include payments received in advance of performance under long-term contracts for product sales and royalties with remaining contract terms that range up to 18 years. Amounts are recognized in revenue when the performance obligations for the contract are met. The Corporation has rights to additional consideration when product is delivered to the customer. The balance of contract liabilities was $34 million at June 30, 2022 ($35 million at December 31, 2021), of which $2 million ($2 million at December 31, 2021) was included in "Accrued and other current liabilities" and $32 million ($33 million at December 31, 2021) was included in "Other noncurrent obligations" in the consolidated balance sheets. The Corporation disaggregates its revenue from contracts with customers by type of customer (sales to related companies and sales to trade customers) as presented in the consolidated statements of income and believes this disaggregation best depicts the nature, amount, timing and uncertainty of its revenue and cash flows. Substantially all of the product sales are made to the Corporation's parent company, TDCC, and there are no unique economic factors that affect revenue recognition and cash flows associated with these product sales.

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2022
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES The following table provides a breakdown of inventories: Inventories Jun 30, 2022 Dec 31, 2021 In millions Finished goods $ 285 $ 238 Work in process 53 33 Raw materials 71 59 Supplies 77 76 Total $ 486 $ 406 Adjustment of inventories to a LIFO basis (196) (156) Total inventories $ 290 $ 250

INTANGIBLE ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2022
Intangible Assets, Net (Excluding Goodwill) [Abstract]
INTANGIBLE ASSETS DISCLOSURE	INTANGIBLE ASSETS The following table provides information regarding the Corporation’s intangible assets: Intangible Assets Jun 30, 2022 Dec 31, 2021 In millions Gross Accum Amort Net Gross Accum Amort Net Intangible assets with finite lives: Developed technology $ 33 $ (33) $ — $ 33 $ (33) $ — Software 83 (73) 10 83 (70) 13 Total intangible assets $ 116 $ (106) $ 10 $ 116 $ (103) $ 13 Total estimated amortization expense for 2022 and the five succeeding fiscal years, including amounts expected to be capitalized, is as follows: Estimated Amortization Expense In millions 2022 $ 5 2023 $ 3 2024 $ 2 2025 $ 1 2026 $ 1 2027 $ —

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES DISCLOSURE	COMMITMENTS AND CONTINGENCIES A summary of the Corporation's commitments and contingencies can be found in Note 14 to the Consolidated Financial Statements included in the 2021 10-K, which is incorporated by reference herein. Environmental Matters Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. At June 30, 2022, the Corporation had accrued obligations of $180 million for probable environmental remediation and restoration costs ($148 million at December 31, 2021), including $26 million for the remediation of Superfund sites ($23 million at December 31, 2021). This is management’s best estimate of the costs for remediation and restoration with respect to environmental matters for which the Corporation has accrued liabilities, although it is reasonably possible that the ultimate cost with respect to these particular matters could range up to approximately two times that amount. Consequently, it is reasonably possible that environmental remediation and restoration costs in excess of amounts accrued could have a material impact on the Corporation's results of operations, financial condition and cash flows. It is the opinion of the Corporation’s management that the possibility is remote that costs in excess of the range disclosed will have a material impact on the Corporation’s results of operations, financial condition and cash flows. Inherent uncertainties exist in these estimates primarily due to unknown environmental conditions, changing governmental regulations and legal standards regarding liability, and emerging remediation technologies for handling site remediation and restoration. As new or additional information becomes available and/or certain spending trends become known, management will evaluate such information in determination of the current estimate of the environmental liability. During the first quarter of 2022, the Corporation recorded a pretax charge of $37 million, included in "Cost of sales" in the consolidated statements of income, related to environmental remediation at a number of current and historical locations. The charge primarily resulted from updated remediation estimates and scope changes on existing matters. Litigation Asbestos-Related Matters Each quarter, the Corporation reviews claims filed, settled and dismissed, as well as average settlement and resolution costs by disease category. The Corporation also considers additional quantitative and qualitative factors such as the nature of pending claims, trial experience of the Corporation and other asbestos defendants, current spending for defense and processing costs, significant appellate rulings and legislative developments, trends in the tort system, and their respective effects on expected future resolution costs. UCC management considers these factors in conjunction with the most recent actuarial study and determines whether a change in the estimate is warranted. Based on the Corporation's review of 2022 activity, it was determined that no adjustment to the accrual was required at June 30, 2022. The Corporation’s total asbestos-related liability for pending and future claims and defense and processing costs was $977 million at June 30, 2022 ($1,016 million at December 31, 2021), and was included in “Asbestos-related liabilities - current” and “Asbestos-related liabilities - noncurrent” in the consolidated balance sheets. At June 30, 2022, approximately 27 percent of the recorded claim liability related to pending claims and approximately 73 percent related to future claims.

LEASES (Notes)

LEASES (Notes)	6 Months Ended
	Jun. 30, 2022
Leases [Abstract]
Lessee, Operating And Finance Leases	LEASES For additional information on the Corporation's leases, see Note 15 to the Consolidated Financial Statements included in th e 2021 10-K. The components of lease cost for operating and finance leases for the three and six months ended June 30, 2022 and 2021 were as follows: Lease Cost Three Months Ended Six Months Ended In millions Jun 30, 2022 Jun 30, 2021 Jun 30, 2022 Jun 30, 2021 Operating lease cost $ 6 $ 7 $ 12 $ 12 Short-term lease cost 8 8 16 14 Variable lease cost 5 16 9 18 Amortization of right-of-use assets - finance — 1 1 1 Total lease cost $ 19 $ 32 $ 38 $ 45 The following table provides supplemental cash flow information related to leases: Other Lease Information Six Months Ended In millions Jun 30, 2022 Jun 30, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 12 $ 11 Financing cash flows for finance leases $ 1 $ 2 Right-of-use assets obtained in exchange for lease obligations: Finance leases $ — $ 5 The following table summarizes the lease-related assets and liabilities recorded in the consolidated balance sheets at June 30, 2022 and December 31, 2021: Lease Position Balance Sheet Classification Jun 30, 2022 Dec 31, 2021 In millions Assets Operating lease assets Operating lease right-of-use assets $ 112 $ 122 Finance lease assets Property 19 19 Finance lease amortization Accumulated depreciation (12) (11) Total lease assets $ 119 $ 130 Liabilities Current Operating Operating lease liabilities - current $ 20 $ 20 Finance Long-term debt due within one year 3 3 Noncurrent Operating Operating lease liabilities - noncurrent 93 103 Finance Long-term debt 5 6 Total lease liabilities $ 121 $ 132 The weighted-average remaining lease term and discount rate for leases recorded in the consolidated balance sheets at June 30, 2022 and December 31, 2021 are provided below: Lease Term and Discount Rate Jun 30, 2022 Dec 31, 2021 Weighted-average remaining lease term Operating leases 6.7 years 7.1 years Finance leases 2.7 years 3.1 years Weighted-average discount rate Operating leases 3.29 % 3.17 % Finance leases 2.53 % 2.53 % The following table provides the maturities of lease liabilities at June 30, 2022: Maturities of Lease Liabilities Jun 30, 2022 Operating Leases Finance Leases In millions 2022 $ 12 $ 2 2023 22 3 2024 22 2 2025 20 1 2026 19 — 2027 and thereafter 30 — Total future undiscounted lease payments $ 125 $ 8 Less: Imputed interest 12 — Total present value of lease liabilities $ 113 $ 8

AOCL

AOCL	6 Months Ended
	Jun. 30, 2022
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE LOSS	ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in the balances for each component of accumulated other comprehensive loss ("AOCL") for the three and six months ended June 30, 2022 and 2021 were as follows: Accumulated Other Comprehensive Loss Three Months Ended Six Months Ended In millions Jun 30, 2022 Jun 30, 2021 Jun 30, 2022 Jun 30, 2021 Cumulative Translation Adjustment Beginning balance $ (55) $ (55) $ (53) $ (55) Unrealized gains (losses) on foreign currency translation 2 — — — Ending balance $ (53) $ (55) $ (53) $ (55) Pension and Other Postretirement Benefits Beginning balance $ (1,479) $ (1,631) $ (1,498) $ (1,715) Gains (losses) arising during the period 1 — — — 87 Tax (expense) benefit — — — (20) Net gains (losses) arising during the period — — — 67 Amortization of net loss and prior service credit reclassified from AOCL to net income 2 24 27 49 49 Tax expense (benefit) 3 (5) (7) (11) (12) Net loss reclassified from AOCL to net income 19 20 38 37 Other comprehensive income (loss), net of tax 19 20 38 104 Ending balance $ (1,460) $ (1,611) $ (1,460) $ (1,611) Total AOCL ending balance $ (1,513) $ (1,666) $ (1,513) $ (1,666) 1. The 2021 impact relates to an interim remeasurement of U.S. pension plans due to the announced freeze of plan benefits in the first quarter of 2021. 2. These AOCL components are included in the computation of net periodic benefit cost (credit) of the Corporation's defined benefit pension and other postretirement benefit plans. See Note 8 for additional information. 3. Reclassified to "Provision for income taxes."

PENSION PLANS AND OTHER POSTRET

PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS	6 Months Ended
	Jun. 30, 2022
Retirement Benefits [Abstract]
Pension and Other Postretirement Benefits Disclosure [Text Block]	PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS A summary of the Corporation's pension and other postretirement benefit plans can be found in Note 17 to the Consolidated Financial Statements included in the 2021 10-K. The following table provides the components of the Corporation's net periodic benefit cost (credit) for all significant plans: Net Periodic Benefit Cost (Credit) for All Significant Plans Three Months Ended Six Months Ended In millions Jun 30, 2022 Jun 30, 2021 Jun 30, 2022 Jun 30, 2021 Defined Benefit Pension Plans Service cost $ 9 $ 6 $ 18 $ 14 Interest cost 23 21 46 40 Expected return on plan assets (56) (56) (113) (107) Amortization of prior service credit (1) — (1) — Amortization of net loss 27 28 54 58 Curtailment gain — — — (7) Net periodic benefit cost (credit) $ 2 $ (1) $ 4 $ (2) Other Postretirement Benefit Plan Interest cost $ 1 $ 1 $ 2 $ 2 Amortization of net gain (2) (1) (4) (2) Net periodic benefit cost (credit) $ (1) $ — $ (2) $ —

Fair Value Measures and Disclos

Fair Value Measures and Disclosures	6 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Financial Instruments Disclosure [Text Block]	FAIR VALUE MEASUREMENTS The Corporation's financial instruments are classified as Level 2 measurements. For assets and liabilities classified as Level 2 measurements, where the security is frequently traded in less active markets, fair value is based on the closing price at the end of the period; where the security is less frequently traded, fair value is based on the price a dealer would pay for the security or similar securities, adjusted for any terms specific to that asset or liability, or by using observable market data points of similar, more liquid securities to imply the price. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance and quality checks. The following table summarizes the fair value of the Corporation's financial instruments at June 30, 2022 and December 31, 2021: Fair Value of Financial Instruments Jun 30, 2022 Dec 31, 2021 In millions Cost Gain Loss Fair Value Cost Gain Loss Fair Value Cash equivalents 1 $ 10 $ — $ — $ 10 $ 10 $ — $ — $ 10 Long-term debt including debt due within one year $ (394) $ — $ (48) $ (442) $ (395) $ — $ (133) $ (528) 1. Money market fund is included in "Cash and cash equivalents" in the consolidated balance sheets and held at amortized cost, which approximates fair value. Cost approximates fair value for all other financial instruments.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2022
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS DISCLOSURE	RELATED PARTY TRANSACTIONS A summary of the Corporation's related party transactions can be found in Note 19 to the Consolidated Financial Statements included in the 2021 10-K . Product and Services Agreements The following table summarizes UCC’s transactions with TDCC and a TDCC subsidiary related to product and services agreements for the three and six months ended June 30, 2022 and 2021: Product and Services Agreements Transactions Three Months Ended Six Months Ended Jun 30, 2022 Jun 30, 2021 Jun 30, 2022 Jun 30, 2021 Income Statement Classification In millions TDCC Subsidiary: Commodity and raw materials purchases 1 $ 563 $ 495 $ 1,068 $ 978 Cost of sales Commission expense $ 5 $ 6 $ 10 $ 12 Sundry income (expense) - net TDCC: General administrative and overhead type services and service fee $ 16 $ 18 $ 32 $ 35 Sundry income (expense) - net Activity-based costs $ 22 $ 18 $ 42 $ 37 Cost of sales 1. Period-end balances on hand are included in inventory. The increase in purchase costs was primarily due to higher feedstock costs. Dividends The following table summarizes cash dividends declared and paid to TDCC for the three and six months ended June 30, 2022 and 2021: Cash Dividends Declared and Paid Three Months Ended Six Months Ended Jun 30, 2022 Jun 30, 2021 Jun 30, 2022 Jun 30, 2021 In millions Cash dividends declared and paid $ 296 $ — $ 521 $ 40

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2022
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	The following table provides a breakdown of inventories: Inventories Jun 30, 2022 Dec 31, 2021 In millions Finished goods $ 285 $ 238 Work in process 53 33 Raw materials 71 59 Supplies 77 76 Total $ 486 $ 406 Adjustment of inventories to a LIFO basis (196) (156) Total inventories $ 290 $ 250

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2022
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Intangible Assets	The following table provides information regarding the Corporation’s intangible assets: Intangible Assets Jun 30, 2022 Dec 31, 2021 In millions Gross Accum Amort Net Gross Accum Amort Net Intangible assets with finite lives: Developed technology $ 33 $ (33) $ — $ 33 $ (33) $ — Software 83 (73) 10 83 (70) 13 Total intangible assets $ 116 $ (106) $ 10 $ 116 $ (103) $ 13
Schedule of Expected Amortization Expense [Table Text Block]	Total estimated amortization expense for 2022 and the five succeeding fiscal years, including amounts expected to be capitalized, is as follows: Estimated Amortization Expense In millions 2022 $ 5 2023 $ 3 2024 $ 2 2025 $ 1 2026 $ 1 2027 $ —

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2022
Leases [Abstract]
Lease, Cost [Table Text Block]	The components of lease cost for operating and finance leases for the three and six months ended June 30, 2022 and 2021 were as follows: Lease Cost Three Months Ended Six Months Ended In millions Jun 30, 2022 Jun 30, 2021 Jun 30, 2022 Jun 30, 2021 Operating lease cost $ 6 $ 7 $ 12 $ 12 Short-term lease cost 8 8 16 14 Variable lease cost 5 16 9 18 Amortization of right-of-use assets - finance — 1 1 1 Total lease cost $ 19 $ 32 $ 38 $ 45
Schedule of Supplemental Cash Flow Information Related to Leases [Table Text Block]	The following table provides supplemental cash flow information related to leases: Other Lease Information Six Months Ended In millions Jun 30, 2022 Jun 30, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 12 $ 11 Financing cash flows for finance leases $ 1 $ 2 Right-of-use assets obtained in exchange for lease obligations: Finance leases $ — $ 5
Schedule of Lease Assets and Liabilities [Table Text Block]	The following table summarizes the lease-related assets and liabilities recorded in the consolidated balance sheets at June 30, 2022 and December 31, 2021: Lease Position Balance Sheet Classification Jun 30, 2022 Dec 31, 2021 In millions Assets Operating lease assets Operating lease right-of-use assets $ 112 $ 122 Finance lease assets Property 19 19 Finance lease amortization Accumulated depreciation (12) (11) Total lease assets $ 119 $ 130 Liabilities Current Operating Operating lease liabilities - current $ 20 $ 20 Finance Long-term debt due within one year 3 3 Noncurrent Operating Operating lease liabilities - noncurrent 93 103 Finance Long-term debt 5 6 Total lease liabilities $ 121 $ 132
Lease Terms and Discount Rates [Table Text Block]	The weighted-average remaining lease term and discount rate for leases recorded in the consolidated balance sheets at June 30, 2022 and December 31, 2021 are provided below: Lease Term and Discount Rate Jun 30, 2022 Dec 31, 2021 Weighted-average remaining lease term Operating leases 6.7 years 7.1 years Finance leases 2.7 years 3.1 years Weighted-average discount rate Operating leases 3.29 % 3.17 % Finance leases 2.53 % 2.53 %
Maturities of Lease Liabilities [Table Text Block]	The following table provides the maturities of lease liabilities at June 30, 2022: Maturities of Lease Liabilities Jun 30, 2022 Operating Leases Finance Leases In millions 2022 $ 12 $ 2 2023 22 3 2024 22 2 2025 20 1 2026 19 — 2027 and thereafter 30 — Total future undiscounted lease payments $ 125 $ 8 Less: Imputed interest 12 — Total present value of lease liabilities $ 113 $ 8

AOCL (Tables)

AOCL (Tables)	6 Months Ended
	Jun. 30, 2022
Equity [Abstract]
Schedule of Components of Other Comprehensive Income (Loss)	The changes in the balances for each component of accumulated other comprehensive loss ("AOCL") for the three and six months ended June 30, 2022 and 2021 were as follows: Accumulated Other Comprehensive Loss Three Months Ended Six Months Ended In millions Jun 30, 2022 Jun 30, 2021 Jun 30, 2022 Jun 30, 2021 Cumulative Translation Adjustment Beginning balance $ (55) $ (55) $ (53) $ (55) Unrealized gains (losses) on foreign currency translation 2 — — — Ending balance $ (53) $ (55) $ (53) $ (55) Pension and Other Postretirement Benefits Beginning balance $ (1,479) $ (1,631) $ (1,498) $ (1,715) Gains (losses) arising during the period 1 — — — 87 Tax (expense) benefit — — — (20) Net gains (losses) arising during the period — — — 67 Amortization of net loss and prior service credit reclassified from AOCL to net income 2 24 27 49 49 Tax expense (benefit) 3 (5) (7) (11) (12) Net loss reclassified from AOCL to net income 19 20 38 37 Other comprehensive income (loss), net of tax 19 20 38 104 Ending balance $ (1,460) $ (1,611) $ (1,460) $ (1,611) Total AOCL ending balance $ (1,513) $ (1,666) $ (1,513) $ (1,666) 1. The 2021 impact relates to an interim remeasurement of U.S. pension plans due to the announced freeze of plan benefits in the first quarter of 2021. 2. These AOCL components are included in the computation of net periodic benefit cost (credit) of the Corporation's defined benefit pension and other postretirement benefit plans. See Note 8 for additional information. 3. Reclassified to "Provision for income taxes."

PENSION PLANS AND OTHER POSTR_2

PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables)	6 Months Ended
	Jun. 30, 2022
Retirement Benefits [Abstract]
Net Periodic Benefit Cost for All Significant Plans	The following table provides the components of the Corporation's net periodic benefit cost (credit) for all significant plans: Net Periodic Benefit Cost (Credit) for All Significant Plans Three Months Ended Six Months Ended In millions Jun 30, 2022 Jun 30, 2021 Jun 30, 2022 Jun 30, 2021 Defined Benefit Pension Plans Service cost $ 9 $ 6 $ 18 $ 14 Interest cost 23 21 46 40 Expected return on plan assets (56) (56) (113) (107) Amortization of prior service credit (1) — (1) — Amortization of net loss 27 28 54 58 Curtailment gain — — — (7) Net periodic benefit cost (credit) $ 2 $ (1) $ 4 $ (2) Other Postretirement Benefit Plan Interest cost $ 1 $ 1 $ 2 $ 2 Amortization of net gain (2) (1) (4) (2) Net periodic benefit cost (credit) $ (1) $ — $ (2) $ —

Fair Value Measures and Discl_2

Fair Value Measures and Disclosures (Tables)	6 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value, by Balance Sheet Grouping [Table Text Block]	The following table summarizes the fair value of the Corporation's financial instruments at June 30, 2022 and December 31, 2021: Fair Value of Financial Instruments Jun 30, 2022 Dec 31, 2021 In millions Cost Gain Loss Fair Value Cost Gain Loss Fair Value Cash equivalents 1 $ 10 $ — $ — $ 10 $ 10 $ — $ — $ 10 Long-term debt including debt due within one year $ (394) $ — $ (48) $ (442) $ (395) $ — $ (133) $ (528) 1. Money market fund is included in "Cash and cash equivalents" in the consolidated balance sheets and held at amortized cost, which approximates fair value.

Related Party Disclosures (Tabl

Related Party Disclosures (Tables)	6 Months Ended
	Jun. 30, 2022
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	The following table summarizes UCC’s transactions with TDCC and a TDCC subsidiary related to product and services agreements for the three and six months ended June 30, 2022 and 2021: Product and Services Agreements Transactions Three Months Ended Six Months Ended Jun 30, 2022 Jun 30, 2021 Jun 30, 2022 Jun 30, 2021 Income Statement Classification In millions TDCC Subsidiary: Commodity and raw materials purchases 1 $ 563 $ 495 $ 1,068 $ 978 Cost of sales Commission expense $ 5 $ 6 $ 10 $ 12 Sundry income (expense) - net TDCC: General administrative and overhead type services and service fee $ 16 $ 18 $ 32 $ 35 Sundry income (expense) - net Activity-based costs $ 22 $ 18 $ 42 $ 37 Cost of sales 1. Period-end balances on hand are included in inventory. The increase in purchase costs was primarily due to higher feedstock costs.
Dividends Declared	The following table summarizes cash dividends declared and paid to TDCC for the three and six months ended June 30, 2022 and 2021: Cash Dividends Declared and Paid Three Months Ended Six Months Ended Jun 30, 2022 Jun 30, 2021 Jun 30, 2022 Jun 30, 2021 In millions Cash dividends declared and paid $ 296 $ — $ 521 $ 40

Revenue from Contract with Cu_2

Revenue from Contract with Customer (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Revenue from External Customer [Line Items]
Contract with Customer, Liability	$ 34	$ 35
Accrued Liabilities [Member]
Revenue from External Customer [Line Items]
Contract with Customer, Liability, Current	2	2
Other Noncurrent Liabilities [Member]
Revenue from External Customer [Line Items]
Contract with Customer, Liability, Noncurrent	$ 32	$ 33
Maximum [Member]
Revenue from External Customer [Line Items]
Revenue, Performance Obligation, Description of Timing	18 years

INVENTORIES (Schedule of Invent

INVENTORIES (Schedule of Inventories) (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Finished goods	$ 285	$ 238
Work in process	53	33
Raw materials	71	59
Supplies	77	76
Inventory, Gross	486	406
Inventory Adjustments	(196)	(156)
Total inventories	$ 290	$ 250

INTANGIBLE ASSETS (Schedule of

INTANGIBLE ASSETS (Schedule of Amortization Expense of Intangible Assets) (Table and Narrative) (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets, Gross	$ 116	$ 116
Finite-Lived Intangible Assets, Accumulated Amortization	(106)	(103)
Finite-Lived Intangible Assets, Net	10	13
Developed Technology Rights
Finite-Lived Intangible Assets, Gross	33	33
Finite-Lived Intangible Assets, Accumulated Amortization	(33)	(33)
Finite-Lived Intangible Assets, Net	0	0
Software [Member]
Finite-Lived Intangible Assets, Gross	83	83
Finite-Lived Intangible Assets, Accumulated Amortization	(73)	(70)
Finite-Lived Intangible Assets, Net	$ 10	$ 13

INTANGIBLE ASSETS (Schedule o_2

INTANGIBLE ASSETS (Schedule of Future Amortization Expense of Intangible Assets) (Details) $ in Millions	Jun. 30, 2022 USD ($)
Finite-Lived Intangible Asset, Expected Amortization, Year One	$ 5
Finite-Lived Intangible Asset, Expected Amortization, Year Two	3
Finite-Lived Intangible Asset, Expected Amortization, Year Three	2
Finite-Lived Intangible Asset, Expected Amortization, Year Four	1
Finite-Lived Intangible Asset, Expected Amortization, Year Five	1
Finite-Lived Intangible Asset, Expected Amortization, after Year Five	$ 0

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Environmental Matters) (Narrative) (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Site Contingency [Line Items]
Accrual for Environmental Loss Contingencies	$ 180	$ 148
Accrual for Environmental Loss Contingencies, Revision in Estimates	37
Super Fund Sites [Member]
Site Contingency [Line Items]
Accrual for Environmental Loss Contingencies	$ 26	$ 23

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Asbestos-Related Matters of Union Carbide Corporation) (Table and Narrative) (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Loss Contingencies [Line Items]
Liability for Asbestos and Environmental Claims, Gross	$ 977	$ 1,016
Percentage of recorded asbestos liability related to pending claims	27%
Percentage of recorded asbestos liability related to future claims	73%

LEASES COSTS AND OTHER INFORMAT

LEASES COSTS AND OTHER INFORMATION (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Operating Lease Cost	$ 6	$ 7	$ 12	$ 12
Short-term Lease Cost	8	8	16	14
Variable Lease, Cost	5	16	9	18
Finance Lease, Right-of-Use Asset, Amortization	0	1	1	1
Lease, Cost	$ 19	$ 32	38	45
Operating cash flows for operating leases			12	11
Finance Lease, Principal Payments			1	2
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability			$ 0	$ 5

LEASES POSITION (Details)

LEASES POSITION (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Operating lease right-of-use assets	$ 112	$ 122
Total Lease Assets	119	130
Operating lease liabilities - current	20	20
Finance Lease, Liability, Current	3	3
Operating lease liabilities - noncurrent	93	103
Finance Lease, Liability, Noncurrent	5	6
Total Lease Liabilities	121	132
Property, Plant and Equipment
Finance Lease, Right-of-Use Asset, before Accumulated Amortization	19	19
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment
Finance Lease, Right-of-Use Asset, Accumulated Amortization	$ (12)	$ (11)

LEASES TERM AND DISCOUNT (Detai

LEASES TERM AND DISCOUNT (Details)	Jun. 30, 2022	Dec. 31, 2021
Operating Lease, Weighted Average Remaining Lease Term	6 years 8 months 12 days	7 years 1 month 6 days
Finance Lease, Weighted Average Remaining Lease Term	2 years 8 months 12 days	3 years 1 month 6 days
Operating Lease, Weighted Average Discount Rate, Percent	3.29%	3.17%
Finance Lease, Weighted Average Discount Rate, Percent	2.53%	2.53%

LEASE MATURITIES (Details)

LEASE MATURITIES (Details) $ in Millions	Jun. 30, 2022 USD ($)
Lessee, Operating Lease, Liability, Payments, Remainder of 2022	$ 12
Lessee, Operating Lease, Liability, Payments, Due 2023	22
Lessee, Operating Lease, Liability, Payments, Due 2024	22
Lessee, Operating Lease, Liability, Payments, Due 2025	20
Lessee, Operating Lease, Liability, Payments, Due 2026	19
Lessee, Operating Lease, Liability, Payments, Due 2027 and thereafter	30
Lessee, Operating Lease, Liability, to be Paid, Total	125
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	12
Operating Lease, Liability	113
Finance Lease, Liability, Payments, Due 2022	2
Finance Lease, Liability, Payments, Due 2023	3
Finance Lease, Liability, Payments, Due 2024	2
Finance Lease, Liability, Payments, Due 2025	1
Finance Lease, Liability, Payments, Due 2026	0
Finance Lease, Liability, Payments, Due 2027 and thereafter	0
Finance Lease, Liability, Payment, Due, Total	8
Finance Lease, Liability, Undiscounted Excess Amount	0
Finance Lease, Liability	$ 8

AOCL (Details)

AOCL (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss	$ (1,513)	$ (1,666)	$ (1,513)	$ (1,666)		$ (1,551)
Other Comprehensive Income (Loss), Net of Tax	(21)	(20)	(38)	(104)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss	(53)	(55)	(53)	(55)	$ (55)	(53)	$ (55)	$ (55)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	2	0	0	0
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss	(1,460)	(1,611)	(1,460)	(1,611)	$ (1,479)	$ (1,498)	$ (1,631)	$ (1,715)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	0	0	0	67
Other Comprehensive Income (Loss), before Reclassifications, before Tax	0	0	0	87
Other Comprehensive Income (Loss) before Reclassifications, Tax	0	0	0	(20)
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	24	27	49	49
Reclassification from AOCI, Current Period, Tax	(5)	(7)	(11)	(12)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	19	20	38	37
Other Comprehensive Income (Loss), Net of Tax	$ 19	$ 20	$ 38	$ 104

PENSION PLANS AND OTHER POSTR_3

PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Defined Benefit Pension Plans [Member]
Service cost	$ 9	$ 6	$ 18	$ 14
Interest cost	23	21	46	40
Expected return on plan assets	56	56	113	107
Defined Benefit Plan, Amortization of Prior Service Cost (Credit)	(1)	0	(1)	0
Defined Benefit Plan, Amortization of Gain (Loss)	(27)	(28)	(54)	(58)
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment	0	0	0	7
Net periodic benefit cost (credit)	2	(1)	4	(2)
Other Postretirement Benefits [Member]
Interest cost	1	1	2	2
Defined Benefit Plan, Amortization of Gain (Loss)	2	1	4	2
Net periodic benefit cost (credit)	$ (1)	$ 0	$ (2)	$ 0

Fair Value Measures and Discl_3

Fair Value Measures and Disclosures (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Long-term Debt	$ (394)	$ (395)
Long-term Debt, Fair Value	(442)	(528)
Long-term Debt [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Financial Instruments Gross Unrealized Gains	0	0
Financial Instruments Gross Unrealized Loss	(48)	(133)
Money Market Funds [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash Equivalents, at Carrying Value	10	10
Financial Instruments Gross Unrealized Gains	0	0
Financial Instruments Gross Unrealized Loss	0	0
Cash Equivalents, Fair Value	$ 10	$ 10

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Related Party Transaction [Line Items]
Payments of Dividends			$ 521	$ 40
The Dow Chemical Company [Member]
Related Party Transaction [Line Items]
Payments of Dividends	$ 296	$ 0	521	40
Commodity And Raw Material Purchases | Cost of Sales [Member] | The Dow Chemical Company [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	563	495	1,068	978
Net Commission Expense | Sundry Income (Expense), Net [Member] | The Dow Chemical Company [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	5	6	10	12
General and Administrative Expense | Sundry Income (Expense), Net [Member] | The Dow Chemical Company [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	16	18	32	35
Activity Based Costs | Cost of Sales [Member] | The Dow Chemical Company [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	$ 22	$ 18	$ 42	$ 37