Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 31, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
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 | 553-2769 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
Document Financial Statement Error Correction [Flag] | 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 | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Public Float | $ 0 | ||
ICFR Auditor Attestation Flag | false | ||
Auditor Firm ID | 34 | ||
Auditor Location | Midland, Michigan | ||
Auditor Name | DELOITTE & TOUCHE LLP |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Net trade sales | $ 147 | $ 191 | $ 154 |
Net sales to related companies | 4,149 | 5,258 | 4,951 |
Total net sales | 4,296 | 5,449 | 5,105 |
Cost of sales | 3,804 | 4,586 | 4,463 |
Research and development expenses | 22 | 26 | 25 |
Selling, general and administrative expenses | 10 | 10 | 9 |
Restructuring Charges | 14 | 0 | 1 |
Total sundry income (expense) - net | (25) | (53) | (53) |
Interest Income, Other | 49 | 18 | 2 |
Interest expense and amortization of debt discount | 16 | 26 | 27 |
Income Before Income Taxes | 454 | 766 | 529 |
Provision (Credit) for income taxes | 73 | 172 | 154 |
Net Income Attributable to Union Carbide Corporation | $ 381 | $ 594 | $ 375 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income attributable to Union Carbide Corporation | $ 381 | $ 594 | $ 375 |
Other comprehensive income (loss), net of tax | |||
Cumulative translation adjustments | 1 | (1) | 2 |
Pension and other postretirement benefit plans | 58 | 150 | 217 |
Net other comprehensive income | 59 | 149 | 219 |
Comprehensive income attributable to Union Carbide Corporation | $ 440 | $ 743 | $ 594 |
UCC Consolidated Balance Sheet
UCC Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Cash and cash equivalents | $ 11 | $ 10 |
Trade (net of allowance for doubtful receivables 2023: $—; 2022: $—) | 16 | 40 |
Accounts Receivable from Related Companies | 700 | 766 |
Other | 14 | 24 |
Income taxes receivable | 238 | 211 |
Notes receivable from related companies | 799 | 958 |
Inventories | 227 | 256 |
Other current assets | 36 | 38 |
Total current assets | 2,041 | 2,303 |
Investments in related companies | 237 | 237 |
Other investments | 15 | 23 |
Noncurrent receivables | 99 | 91 |
Noncurrent receivables from related companies | 1,598 | 61 |
Total investments | 1,949 | 412 |
Property | 5,406 | 7,104 |
Less accumulated depreciation | 4,512 | 5,922 |
Net property | 894 | 1,182 |
Intangible assets (net of accumulated amortization 2023: $93; 2022: $100) | 7 | 9 |
Operating lease, right-of-use asset | 85 | 107 |
Deferred Tax Assets, Deferred Income | 257 | 239 |
Deferred charges and other assets | 39 | 37 |
Total other assets | 388 | 392 |
Total Assets | 5,272 | 4,289 |
Notes payable to related companies | 68 | 51 |
Notes Payable to Bank | 1 | 4 |
Long-term debt due within one year | 1 | 132 |
Trade | 286 | 284 |
Accounts payable to related company | 420 | 411 |
Other | 12 | 16 |
Operating lease liabilities - current | 17 | 21 |
Income taxes payable | 30 | 33 |
Asbestos-related liabilities - current | 80 | 90 |
Accrued and other current liabilities | 116 | 145 |
Total current liabilities | 1,031 | 1,187 |
Long-term Debt and Lease Obligation | 259 | 262 |
Pension and other postretirement benefits - noncurrent | 395 | 298 |
Asbestos-related liabilities - noncurrent | 787 | 857 |
Operating lease liabilities - noncurrent | 68 | 87 |
Other noncurrent obligations | 567 | 254 |
Total other noncurrent liabilities | 1,817 | 1,496 |
Common stock (authorized: 1,000 shares of $0.01 par value each; issued: 935.51 shares) | 0 | 0 |
Additional paid-in capital | 1,034 | 141 |
Retained earnings | 2,474 | 2,605 |
Accumulated other comprehensive loss | (1,343) | (1,402) |
Equity, Including Portion Attributable to Noncontrolling Interest, Total | 2,165 | 1,344 |
Total Liabilities and Equity | $ 5,272 | $ 4,289 |
Consolidated Balance Sheet Pare
Consolidated Balance Sheet Parentheticals - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 0 | $ 0 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 93 | $ 100 |
Common stock, shares authorized (in shares) | 1,000 | 1,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 935.51 | 935.51 |
Common stock (authorized: 1,000 shares of $0.01 par value each; issued: 935.51 shares) | $ 0 | $ 0 |
Accumulated other comprehensive loss | (1,343) | (1,402) |
Additional paid-in capital | 1,034 | 141 |
Retained earnings | $ 2,474 | $ 2,605 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Activities | |||
Net income attributable to Union Carbide Corporation | $ 381 | $ 594 | $ 375 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 170 | 199 | 202 |
Provision (credit) for deferred income tax | (18) | 5 | 140 |
Net gain on sales of property and investments | (1) | (3) | (6) |
Gain (Loss) on Sale of Investments | 206 | 0 | 0 |
Restructuring and asset related charges - net | 14 | 0 | 1 |
Net periodic pension benefit cost (credit) | 184 | 9 | (5) |
Pension contributions | (2) | (3) | (549) |
Other Noncash Expense | 0 | 0 | 11 |
Changes in assets and liabilities: | |||
Accounts and notes receivable | 31 | 14 | (22) |
Related company receivables | 225 | 658 | (24) |
Inventories | 22 | (6) | (48) |
Accounts payable | 4 | (89) | 132 |
Related company payables | 26 | (190) | 210 |
Asbestos-related payments | (80) | (69) | (82) |
Other assets and liabilities | (52) | 75 | 71 |
Cash provided by operating activities | 698 | 1,194 | 406 |
Change in noncurrent receivable from related company | 6 | 7 | (2) |
Investing Activities | |||
Capital expenditures | (274) | (143) | (121) |
Proceeds from sale of ownership interest in related party | 206 | 0 | 0 |
Proceeds from sales of property and investments | 12 | 3 | 7 |
Cash used for investing activities | (50) | (133) | (116) |
Financing Activities | |||
Dividends paid to parent | (512) | (1,063) | (288) |
Changes in short-term notes payable | (3) | 4 | 0 |
Repayment of Long-Term Debt, Long-Term Lease Obligation, and Capital Security | 132 | 3 | 2 |
Cash used for financing activities | (647) | (1,062) | (290) |
Summary | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect, Total | 1 | (1) | 0 |
Cash and cash equivalents at beginning of year | 10 | 11 | 11 |
Cash and cash equivalents at end of year | $ 11 | $ 10 | $ 11 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accum. Other Comp Loss |
Beginning balance at Dec. 31, 2020 | $ 0 | $ 141 | $ 2,987 | $ (1,770) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income attributable to Union Carbide Corporation | $ 375 | 375 | |||
Dividends declared | (288) | ||||
Other Comprehensive Income (Loss), Net of Tax | 219 | 219 | |||
Ending balance at Dec. 31, 2021 | 1,664 | 0 | 141 | 3,074 | (1,551) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Adjustments to Additional Paid in Capital, Other | 0 | ||||
Net income attributable to Union Carbide Corporation | 594 | 594 | |||
Dividends declared | (1,063) | ||||
Other Comprehensive Income (Loss), Net of Tax | 149 | 149 | |||
Ending balance at Dec. 31, 2022 | 1,344 | 0 | 141 | 2,605 | (1,402) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Adjustments to Additional Paid in Capital, Other | 0 | ||||
Net income attributable to Union Carbide Corporation | 381 | 381 | |||
Dividends declared | (512) | ||||
Other Comprehensive Income (Loss), Net of Tax | 59 | 59 | |||
Ending balance at Dec. 31, 2023 | 2,165 | $ 0 | 1,034 | $ 2,474 | $ (1,343) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Adjustments to Additional Paid in Capital, Other | $ 893 | $ 893 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation and Basis of Presentation Except as otherwise indicated by the context, the terms "Corporation" and "UCC" as used herein mean Union Carbide Corporation and its consolidated subsidiaries. The accompanying consolidated financial statements of the Corporation were prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and include the assets, liabilities, revenues and expenses of all majority-owned subsidiaries over which the Corporation exercises control and, when applicable, entities for which the Corporation has a controlling financial interest. Investments in nonconsolidated affiliates (20-50 percent owned companies, joint ventures and partnerships) are accounted for using the equity method. 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. TDCC conducts its worldwide operations through global businesses. The Corporation’s business activities comprise components of TDCC’s global businesses rather than stand-alone operations. 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 ("CODM") 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 17 for additional information. Use of Estimates in Financial Statement Preparation The preparation of financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The Corporation's consolidated financial statements include amounts that are based on management's best estimates and judgments. Actual results could differ from those estimates. Significant Accounting Policies Asbestos-Related Matters Accruals for asbestos-related matters, including defense and processing costs, are recorded based on an analysis of claim and resolution activity, defense spending and pending and future claims. These accruals are assessed at each balance sheet date to determine if the asbestos-related liability remains appropriate. Accruals for asbestos-related matters are included in the consolidated balance sheets in "Asbestos-related liabilities - current" and "Asbestos-related liabilities - noncurrent." See Note 12 for additional information. Legal Costs The Corporation expenses legal costs as incurred, with the exception of defense and processing costs associated with asbestos-related matters. Foreign Currency Translation While the Corporation's consolidated subsidiaries are primarily based in the United States, the Corporation has small subsidiaries in Asia Pacific and the rest of the world. For those subsidiaries, the local currency has been primarily used as the functional currency. Translation gains and losses of those operations that use local currency as the functional currency are included in the consolidated balance sheets in "Accumulated other comprehensive loss" ("AOCL"). Where the U.S. dollar is used as the functional currency, foreign currency translation gains and losses are reflected in income. 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. These accruals are adjusted periodically as assessment and remediation efforts progress or as additional technical or legal information becomes available. Accruals for environmental liabilities are included in the consolidated balance sheets in "Accrued and other current liabilities" and "Other noncurrent obligations" at undiscounted amounts. Accruals for related insurance or other third-party recoveries for environmental liabilities are recorded when it is probable that a recovery will be realized and are included in the consolidated balance sheets in "Accounts receivable - Other." Environmental costs are capitalized if the costs extend the life of the property, increase its capacity, and/or mitigate or prevent contamination from future operations. Environmental costs are also capitalized in recognition of legal asset retirement obligations resulting from the acquisition, construction and/or normal operation of a long-lived asset. Costs related to environmental contamination treatment and cleanup are charged to expense. Estimated future incremental operations, maintenance and management costs directly related to remediation are accrued when such costs are probable and reasonably estimable. Cash and Cash Equivalents Cash and cash equivalents include time deposits and investments with maturities of three months or less at the time of purchase. Financial Instruments The Corporation calculates the fair value of financial instruments using quoted market prices when available. When quoted market prices are not available for financial instruments, the Corporation uses standard pricing models with market-based inputs that take into account the present value of estimated future cash flows. Inventories Inventories are stated at the lower of cost or net realizable value. The method of determining cost for each subsidiary varies among last-in, first-out ("LIFO"); first-in, first-out ("FIFO"); and average cost, and is used consistently from year to year. The Corporation routinely exchanges and swaps raw materials and finished goods with other companies to reduce delivery time, freight and other transportation costs. These transactions are treated as non-monetary exchanges and are valued at cost. Property Land, buildings and equipment are carried at cost less accumulated depreciation or amortization. Property under finance lease agreements is carried at the present value of lease payments over the lease term less accumulated amortization. Depreciation is based on the estimated service lives of depreciable assets and is calculated using the straight-line method. Fully depreciated assets are retained in property and accumulated depreciation accounts until they are disposed. In the case of disposals, assets and related accumulated depreciation are removed from the accounts, and the net amounts, less proceeds from disposal, are included in income. Impairment and Disposal of Long-Lived Assets The Corporation evaluates long-lived assets (property, finite-lived intangible assets and lease right-of-use assets) for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When undiscounted future cash flows are not expected to be sufficient to recover an asset's carrying amount, the asset is written down to its fair value based on bids received from third parties or a discounted cash flow analysis based on market participant assumptions. Long-lived assets to be disposed of by sale, if material, are classified as held for sale and reported at the lower of carrying amount or fair value less cost to sell, and depreciation/amortization is ceased. Long-lived assets to be disposed of other than by sale are classified as held and used until they are disposed of and reported at the lower of carrying amount or fair value, and depreciation/amortization is recognized over the remaining useful life of the assets. Intangible Assets Finite-lived intangible assets, such as developed technology and software, are amortized over their estimated useful lives, generally on a straight-line basis for periods ranging primarily from 3 to 20 years. Investments in Related Companies Investments in related companies consist of the Corporation's ownership interests in TDCC subsidiaries located in the United States and Latin America. The Corporation accounts for these investments using the cost method as it does not have significant influence over the operating and financial policies of these related companies. Leases UCC determines whether a contract contains a lease at contract inception. A contract contains a lease if there is an identified asset and the Corporation has the right to control the asset. Operating lease right-of-use (“ROU”) assets represent UCC’s right to use an underlying asset for the lease term, and lease liabilities represent UCC’s obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. UCC uses the incremental borrowing rate in determining the present value of lease payments, unless the implicit rate is readily determinable. If lease terms include options to extend or terminate the lease, the ROU asset and lease liability are measured based on the reasonably certain decision. Leases with a term of 12 months or less at the commencement date are not recognized on the balance sheet and are expensed as incurred. UCC has lease agreements with lease and non-lease components, which are accounted for as a single lease component for nearly all classes of leased assets for which UCC is the lessee. Additionally, for certain equipment leases, the portfolio approach is applied to account for the operating lease ROU assets and lease liabilities. In the consolidated statements of income, lease expense for operating lease payments is recognized on a straight-line basis over the lease term. For finance leases, interest expense is recognized on the lease liability and the ROU asset is amortized over the lease term. Some leasing arrangements require variable payments that are dependent upon usage or output, or may vary for other reasons, such as insurance or tax payments. Variable lease payments are recognized as incurred and are not presented as part of the ROU asset or lease liability. See Note 13 for additional information. Revenue Substantially all of the Corporation's revenues are generated by sales to TDCC. Revenue for product sales to related companies is recognized when the related company obtains control of the product, which occurs either at the time that production is complete or shipped free on board ("FOB") from UCC's manufacturing facility, in accordance with the sales agreement between the Corporation and TDCC. The Corporation recognizes revenue for product sales to trade customers when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Corporation expects to receive in exchange for those goods or services. To determine revenue recognition, the Corporation performs the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. See Note 3 for additional information. Severance Costs Management routinely reviews its operations around the world in an effort to ensure competitiveness across its operations and geographic regions. When the reviews result in a workforce reduction related to the shutdown of facilities or other optimization activities, severance benefits are provided to employees primarily under ongoing benefit arrangements. These severance costs are accrued once management commits to a plan of termination and it becomes probable that employees will be entitled to benefits at amounts that can be reasonably estimated. Income Taxes The Corporation accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities using enacted tax rates. The effect of a change in tax rates on deferred tax assets or liabilities is recognized in income in the period that includes the enactment date. The Corporation is included in the same consolidated federal income tax group and consolidated income tax return as TDCC. The Corporation accounts for its income taxes following the formula in the TDCC-UCC Tax Sharing Agreement used to compute the amount due to TDCC or UCC for UCC's share of taxable income and tax attributes on the consolidated income tax return. This method generally follows the separate return method. The amounts reported as income taxes payable or receivable represent the Corporation's payment obligation (or refundable amount) to TDCC based on a theoretical tax liability calculated on a separate return method. The Corporation recognizes the financial statement effects of an uncertain income tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. The Corporation accrues for non-income tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated. Provision is made for taxes on undistributed earnings of foreign subsidiaries and related companies to the extent that such earnings are not deemed to be permanently invested. |
RECENT ACCOUNTING GUIDANCE (Not
RECENT ACCOUNTING GUIDANCE (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Standards Update and Change in Accounting Principle | RECENT ACCOUNTING GUIDANCE Recently Adopted Accounting Guidance In 2023, the Corporation adopted the disclosure requirements of Accounting Standards Update ("ASU") 2022-04, "Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations," including early adoption of the requirement to disclose rollforward information on a prospective basis. The ASU, which is intended to enhance the transparency of supplier finance programs, requires buyers in a supplier finance program to disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. See Note 5 for disclosures related to the Corporation's supplier finance program. Accounting Guidance Issued But Not Adopted at December 31, 2023 In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures," which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, allowing financial statement users to better understand the components of a segment's profit or loss to assess potential future cash flows for each reportable segment and the entity as a whole. The amendments expand a public entity's segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the CODM, clarifying when an entity may report one or more additional measures to assess segment performance, requiring enhanced interim disclosures, providing new disclosure requirements for entities with a single reportable segment, and requiring other new disclosures. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted. Although the ASU only requires additional disclosures about the Corporation's operating segment, the Corporation is currently evaluating the impact of adopting this guidance on the consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures," which is intended to enhance the transparency, decision usefulness and effectiveness of income tax disclosures. The amendments in this ASU require a public entity to disclose a tabular tax rate reconciliation, using both percentages and currency, with specific categories. A public entity is also required to provide a qualitative description of the states and local jurisdictions that make up the majority of the effect of the state and local income tax category and the net amount of income taxes paid, disaggregated by federal, state and foreign taxes and also disaggregated by individual jurisdictions. The amendments also remove certain disclosures that are no longer considered cost beneficial. The amendments are effective prospectively for annual periods beginning after December 15, 2024, and early adoption and retrospective application are permitted. Although the ASU only modifies the Corporation's required income tax disclosures, the Corporation is currently evaluating the impact of adopting this guidance on the consolidated financial statements. |
REVENUE (Notes)
REVENUE (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 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. Substantially all product sale contracts are short-term in nature and have original expected durations of one year or less. Revenue from product sales is recognized when TDCC or the trade customer obtains control of the Corporation’s product, which occurs at a point in time, typically at the time production is complete or product is shipped FOB from UCC’s manufacturing facility for sales to TDCC, or upon shipment for sales to trade customers. The Corporation’s payment terms are on average 30 to 60 days after invoicing. All shipping and handling activities that occur after control transfers to the customer are considered fulfillment activities. Certain long-term contracts include a series of distinct goods that are delivered continuously to the customer through a pipeline. For these types of product sales, the Corporation invoices the customer in an amount that directly corresponds with the value to the customer of the Corporation’s performance to date. As a result, revenue is recognized based on the amount billable to the customer in accordance with the right to invoice practical expedient. The transaction price for product sales includes estimates for the most likely amount of consideration to which the Corporation will be entitled based on historical award experience and the Corporation’s best judgment at the time. Taxes collected and remitted to governmental authorities are excluded from the transaction price. For contracts with multiple performance obligations, the Corporation allocates the transaction price to each performance obligation on the basis of relative standalone selling price, which is based on the price charged to customers or estimated using the expected cost plus margin method. Revenue related to the initial licensing of patents and technology is recognized when the performance obligation is satisfied. Revenue related to sales-based royalties to which the Corporation expects to be entitled is estimated based on historical sales. 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 17 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 $31 million at December 31, 2023 ($33 million at December 31, 2022), of which $2 million ($2 million at December 31, 2022) was included in "Accrued and other current liabilities" and $29 million ($31 million at December 31, 2022) 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 parties and sales to trade customers) as presented on 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. |
RESTRUCTURING AND ASSET RELATED
RESTRUCTURING AND ASSET RELATED CHARGES - NET (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Asset Related Charges - Net | RESTRUCTURING AND ASSET RELATED CHARGES - NET 2023 Restructuring Program In the first quarter of 2023, the Corporation initiated restructuring actions to achieve its structural cost improvement initiatives in response to the continued economic impact from the global recessionary environment and to enhance its agility and long-term competitiveness across the economic cycle. The program includes workforce cost reductions and actions to rationalize the Corporation's manufacturing assets, which includes asset write-down and write-off charges. As a result of these actions, the Corporation recorded pretax restructuring charges of $14 million, included in "Restructuring and asset related charges - net" in the consolidated statements of income. The charges consisted of severance and related benefit costs of $12 million and asset write-downs and write-offs of $2 million. These actions are expected to be substantially complete by the end of 2024. The Corporation paid $10 million for severance and related benefit costs through December 31, 2023. At December 31, 2023, a liability for severance and related benefit costs of $2 million was included in "Accrued and other current liabilities" in the consolidated balance sheets. |
SUPPLEMENTARY INFORMATION (Note
SUPPLEMENTARY INFORMATION (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Supplementary Information [Abstract] | |
Supplementary Information | SUPPLEMENTARY INFORMATION Sundry Income (Expense) - Net In millions 2023 2022 2021 General administrative and overhead type services and service fees 1 $ (72) $ (65) $ (63) Net commission expense - related company 1 (19) (19) (21) Non-operating pension and other postretirement benefit plan net credits (costs) 2 (144) 34 32 Gain on sale of ownership interest in related party 3 206 — — Net gain on sales of property 1 3 6 Equity in earnings of nonconsolidated affiliate 1 10 — — Other - net (7) (6) (7) Total sundry income (expense) - net $ (25) $ (53) $ (53) 1. See Note 17 for additional information. 2. The 2023 expense includes pretax pension settlement charges of $ 149 million 3. The 2023 amount relates to the sale of a portion of the Corporation's ownership interest in Dow Technology Investments LLC. See Note 17 for additional information. Supplier Finance Program The Corporation is a party to a supply chain financing (“SCF”) program, facilitated by TDCC, which can be used in the ordinary course of business to extend payment terms with the Corporation's vendors. Under the terms of this program, a vendor can voluntarily enter into an agreement with a participating financial intermediary to sell its receivables due from the Corporation. The vendor receives payment from the financial intermediary, and the Corporation pays the financial intermediary on the terms originally negotiated with the vendor, which generally range from 90 to 120 days. The vendor negotiates the terms of the agreements directly with the financial intermediary and the Corporation is not a party to that agreement. The financial intermediary may allow the participating vendor to utilize TDCC's creditworthiness in establishing credit spreads and associated costs, which may provide the vendor with more favorable terms than they would be able to secure on their own. Neither TDCC nor the Corporation provide guarantees related to the SCF program. At December 31, 2023, the Corporation's outstanding obligations confirmed as valid under the SCF program were $ 27 million 29 million The following table summarizes the outstanding obligations confirmed as valid under the SCF program for the year ended December 31, 2023: Supplier Finance Program Activity In millions 2023 Confirmed obligations outstanding at Jan 1 $ 29 Invoices confirmed to financial intermediary 102 Confirmed invoices paid to financial intermediary (104) Confirmed obligations outstanding at Dec 31 $ 27 Supplemental Cash Flow Information The following table shows cash paid (refunded) for interest and income taxes for the years ended December 31, 2023, 2022 and 2021: Supplemental Cash Flow Information 2023 2022 2021 In millions Cash paid (refunded) during year for: Interest $ 26 $ 31 $ 31 Income taxes $ 102 $ 63 $ (62) |
INCOME TAXES (Notes)
INCOME TAXES (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Geographic Allocation of Income and Provision for Income Taxes In millions 2023 2022 2021 Income (loss) before income taxes Domestic $ 455 $ 767 $ 531 Foreign (1) (1) (2) Income before income taxes $ 454 $ 766 $ 529 Current tax expense (benefit) Federal $ 96 $ 157 $ (11) State and local (6) 9 5 Foreign 1 1 20 Total current tax expense $ 91 $ 167 $ 14 Deferred tax expense (benefit) Federal $ (19) $ (2) $ 122 State and local 1 3 23 Foreign — 4 (5) Total deferred tax expense $ (18) $ 5 $ 140 Provision for income taxes $ 73 $ 172 $ 154 Net income $ 381 $ 594 $ 375 Reconciliation to U.S. Statutory Rate 2023 2022 2021 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % Unrecognized tax benefits and related interest (2.7) (0.7) 3.0 State and local tax impact (1.2) 1.7 5.3 Other - net (1.0) 0.5 (0.2) Effective Tax Rate 16.1 % 22.5 % 29.1 % Deferred Tax Balances at Dec 31 2023 2022 In millions Assets Liabilities Assets Liabilities Property $ — $ 123 $ — $ 154 Tax loss and credit carryforwards 11 — 26 — Postretirement benefit obligations 92 — 72 — Other accruals and reserves 270 — 293 3 Inventory 2 — 2 — Other - net 16 — 18 — Subtotal $ 391 $ 123 $ 411 $ 157 Valuation allowances 1 (11) — (15) — Total $ 380 $ 123 $ 396 $ 157 1. Primarily related to the realization of recorded tax benefits on state tax loss carryforwards from operations in the United States. Operating Loss and Tax Credit Carryforwards at Dec 31 2023 2022 In millions Assets Assets Operating loss carryforwards Expire within 5 years $ 5 $ 8 Expire after 5 years or indefinite expiration 3 12 Total operating loss carryforwards $ 8 $ 20 Tax credit carryforwards Expire within 5 years $ 2 $ 5 Expire after 5 years or indefinite expiration 1 1 Total tax credit carryforwards $ 3 $ 6 Total tax loss and tax credit carryforwards $ 11 $ 26 Undistributed earnings of foreign subsidiaries and related companies that are deemed to be permanently invested were zero at December 31, 2023 and December 31, 2022. Accordingly, there are no unrecognized deferred tax liabilities related to such earnings. The Corporation is included in TDCC's consolidated federal income tax group. Current and deferred tax expenses are calculated for the Corporation as a stand-alone group and are allocated to the group from the consolidated totals, consistent with the TDCC-UCC Tax Sharing Agreement. The amounts reported as income taxes payable or receivable represent the Corporation's payment obligation (or refundable amount) to TDCC based on a theoretical tax liability calculated on a separate return method. Under this method, in 2023, the U.S. Gulf Coast Infrastructure Assets transactions and sale of a portion of UCC's ownership interest in Dow Technology Investments LLC, as discussed in Note 17, resulted in the recognition of a $301 million tax payable, included in “Other noncurrent obligations” in the consolidated balance sheets. The following table provides a reconciliation of the Corporation's unrecognized tax benefits: Total Gross Unrecognized Tax Benefits In millions 2023 2022 2021 Total unrecognized tax benefits at Jan 1 $ 8 $ 8 $ 1 Decreases related to positions taken on items from prior years — — (1) Increases related to positions taken on items from prior years — — 8 Total unrecognized tax benefits at Dec 31 $ 8 $ 8 $ 8 Total unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 8 $ 8 $ 8 Total amount of interest and penalties (benefit) recognized in "Provision for income taxes" $ (12) $ (10) $ 11 Total accrual for interest and penalties recognized in the consolidated balance sheets $ 11 $ 10 $ 12 During 2021, the Corporation recorded an uncertain tax position related to a foreign jurisdiction. The Corporation is currently under examination in a number of tax jurisdictions, including the U.S. federal and various state jurisdictions. The earliest open tax years are 2004 for state income taxes and 2007 for federal income taxes in the United States. |
INVENTORIES (Notes)
INVENTORIES (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES The following table provides a breakdown of inventories: Inventories at Dec 31 In millions 2023 2022 Finished goods $ 189 $ 218 Work in process 30 37 Raw materials 60 76 Supplies 87 87 Total $ 366 $ 418 Adjustment of inventories to the LIFO basis (139) (162) Total inventories $ 227 $ 256 Inve ntories valued on the LIFO basis, principally U.S. chemicals and plastics product inventories, represented 60 percent o |
PROPERTY (Notes)
PROPERTY (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property | PROPERTY The following table provides a breakdown of property: Property at Dec 31 Estimated Useful Lives (Years) In millions 2023 2022 Land and land improvements 0-25 $ 68 $ 186 Buildings 5-50 259 403 Machinery and equipment 3-20 4,799 5,993 Other property 3-30 111 383 Construction in progress — 169 139 Total property 1 $ 5,406 $ 7,104 1. In 2023, Total property decreased $1.8 billion due to the Corporation's contribution of certain assets to the TDCC Infrastructure Subsidiary. See Note 17 for additional information. The following table provides information regarding depreciation expense and capitalized interest: In millions 2023 2022 2021 Depreciation expense $ 146 $ 165 $ 167 Capitalized interest $ 8 $ 5 $ 5 |
INVESTMENTS IN RELATED COMPANIE
INVESTMENTS IN RELATED COMPANIES (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Investments in Related Companies [Abstract] | |
Investments in and Advances to Affiliates, Schedule of Investments | INVESTMENTS IN RELATED COMPANIES The Corporation's ownership interests in related companies at December 31, 2023 and 2022 were as follows: Investments in Related Companies at Dec 31 Ownership Interest Investment Balance In millions 2023 2022 2023 2022 Dow International Holdings Company 5 % 5 % $ 232 $ 232 Dow Quimica Mexicana S.A. de C.V. 14 % 14 % 5 5 Total investments in related companies $ 237 $ 237 |
INTANGIBLE ASSETS (Notes)
INTANGIBLE ASSETS (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS The following table provides information regarding the Corporation's intangible assets: Intangible Assets at Dec 31 2023 2022 In millions Gross Carrying Amount Accum Amort Net Gross Carrying Amount Accum Amort Net Intangible assets with finite lives: Developed technology $ 33 $ (33) $ — $ 33 $ (33) $ — Software 1 67 (60) 7 76 (67) 9 Total intangible assets $ 100 $ (93) $ 7 $ 109 $ (100) $ 9 1. In 2023, there was a $10 million decrease to the Gross Carrying Amount and Accumulated Amortization balances due to the Corporation's contribution of certain assets to the TDCC Infrastructure Subsidiary. See Note 17 for additional information. The following table provides information regarding amortization expense: Amortization Expense In millions 2023 2022 2021 Software, included in "Cost of sales" $ 3 $ 5 $ 6 Total estimated amortization expense for the next five fiscal years, including amounts expected to be capitalized, is as follows: Estimated Amortization Expense for Next Five Years In millions 2024 $ 2 2025 $ 2 2026 $ 1 2027 $ 1 2028 $ 1 |
NOTES PAYABLE AND LONG-TERM DEB
NOTES PAYABLE AND LONG-TERM DEBT (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Notes Payable and Long-term Debt | NOTES PAYABLE AND LONG-TERM DEBT Notes Payable at Dec 31 In millions 2023 2022 Notes payable to related companies $ 68 $ 51 Notes payable - other 1 4 Total notes payable $ 69 $ 55 Year-end average interest rates 1.06 % 1.02 % Long-Term Debt at Dec 31 2023 Average Rate 2023 2022 Average Rate 2022 In millions Promissory notes and debentures: Debentures due 2023 — % $ — 7.875 % $ 129 Debentures due 2025 6.79 % 12 6.79 % 12 Debentures due 2025 7.50 % 113 7.50 % 113 Debentures due 2096 7.75 % 135 7.75 % 135 Finance lease obligations 1 3 7 Unamortized debt discount and issuance costs (3) (2) Long-term debt due within one year (1) (132) Total long-term debt $ 259 $ 262 1. See Note 13 for additional information. Maturities of Long-Term Debt for Next Five Years at Dec 31, 2023 In millions 2024 $ 1 2025 $ 126 2026 $ 1 2027 $ — 2028 $ — 2023 Activity In 2023, the Corporation repaid $129 million of long-term debt at maturity. Letters of Credit The Corporation utilizes letters of credit to support commitments made in the ordinary course of business. While the terms and amounts of letters of credit change, UCC generally has approximately $6 million of o utstanding letters of credit at any given time. Debt Covenants and Default Provisions |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | COMMITMENTS AND CONTINGENCIES 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 December 31, 2023, the Corporation had accrued obligations of $ 194 million 183 million The following table summarizes the activity in the Corporation's accrued obligations for environmental matters for the years ended December 31, 2023 and 2022: Accrued Liability for Environmental Matters In millions 2023 2022 Balance at Jan 1 $ 183 $ 148 Accrual adjustment 49 78 Payments against reserve (37) (42) Foreign currency impact (1) (1) Balance at Dec 31 $ 194 $ 183 The amounts charged to income on a pretax basis related to environmental remediation totaled $ 44 million 72 million 47 million Litigation Asbestos-Related Matters Introduction The Corporation is and has been involved in a large number of asbestos-related suits filed primarily in state courts during the past four decades. These suits principally allege personal injury resulting from exposure to asbestos-containing products and frequently seek both actual and punitive damages. The alleged claims primarily relate to products that UCC sold in the past, alleged exposure to asbestos-containing products located on UCC’s premises and UCC’s responsibility for asbestos suits filed against a former UCC subsidiary, Amchem Products, Inc. ("Amchem"). In many cases, plaintiffs are unable to demonstrate that they have suffered any compensable loss as a result of such exposure, or that injuries incurred in fact resulted from exposure to the Corporation’s products. The Corporation expects more asbestos-related suits to be filed against UCC and Amchem in the future, and will aggressively defend or reasonably resolve, as appropriate, both pending and future claims. Estimating the Asbestos-Related Liability The Corporation has engaged Ankura Consulting Group, LLC ("Ankura") to perform periodic studies to estimate the undiscounted cost of disposing of pending and future claims against UCC and Amchem through the terminal year of 2049, including a reasonable forecast of future defense and processing costs. Each October, the Corporation requests Ankura to review its historical asbestos claim and resolution activity through the third quarter of the current year, including asbestos-related defense and processing costs, to determine the appropriateness of updating the most recent study. At each balance sheet date, the Corporation also compares current asbestos claim and resolution activity, including asbestos-related defense and processing costs, to the results of the most recent Ankura study to determine whether the accrual continues to be appropriate. In December 2021, Ankura stated that an update of its December 2020 study would not provide a more likely estimate of future events than the estimate reflected in that study and, therefore, the estimate in that study remained applicable. Based on the Corporation's internal review process and Ankura's response, the Corporation determined that no change to the accrual was required. In December 2022, Ankura completed a study of the Corporation's historical asbestos claim and resolution activity through September 30, 2022, including asbestos-related defense and processing costs, and provided estimates for the undiscounted cost of disposing of pending and future claims against UCC and Amchem through the terminal year of 2049. Based on the study and the Corporation's internal review process, it was determined that no adjustment to the accrual was required. At December 31, 2022, the asbestos-related liability for pending and future claims against UCC and Amchem, including future asbestos-related defense and processing costs, was $947 million and approximately 23 percent of the recorded liability related to pending claims and approximately 77 percent related to future claims. In December 2023, Ankura stated that an update of its December 2022 study would not provide a more likely estimate of future events than the estimate reflected in that study and, therefore, the estimate in that study remained applicable. Based on the Corporation's internal review process and Ankura's response, the Corporation determined that no adjustment to the accrual was required. At December 31, 2023, the asbestos-related liability for pending and future claims against UCC and Amchem, including future asbestos-related defense and processing costs, was $867 million, and approximately 25 percent of the recorded liability related to pending claims and approximately 75 percent related to future claims. Summary The Corporation's management believes the amounts recorded for the asbestos-related liability, including defense and processing costs, reflect reasonable and probable estimates of the liability based on current, known facts. However, future events, such as the number of new claims to be filed and/or received each year, the average cost of defending and disposing of each such claim, as well as the numerous uncertainties surrounding asbestos litigation in the United States over a significant period of time, could cause the actual costs for the Corporation to be higher or lower than those projected or those recorded. Any such event could result in an increase or decrease in the recorded liability. Because of the uncertainties described above, the Corporation cannot estimate the full range of the cost of resolving pending and future asbestos-related claims facing UCC and Amchem. As a result, it is reasonably possible that an additional cost of disposing of asbestos-related claims, including future defense and processing costs, could have a material impact on the Corporation's results of operations and cash flows for a particular period and on the consolidated financial position. Other Litigation The Corporation is also involved in a number of legal proceedings and claims with both private and governmental parties. These cover a wide range of matters, including, but not limited to: product liability; trade regulation; governmental tax and regulatory disputes; health, safety and environmental matters; employment matters; patent infringement; contracts; and commercial litigation. While it is not possible at this time to determine with certainty the ultimate outcome of any of the legal proceedings and claims referred to in this filing, management believes that the possibility is remote that the aggregate of all such other claims and lawsuits will have a material adverse impact on the results of operations, cash flows and financial position of the Corporation. Purchase Commitments The Corporation has outstanding purchase commitments and various commitments for take-or-pay or throughput agreements. The Corporation was not aware of any purchase commitments that were negotiated as part of a financing arrangement for the facilities that will provide the contracted goods or services or for the costs related to those goods or services at December 31, 2023 and 2022. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in each component of AOCL for the years ended December 31, 2023, 2022 and 2021 were as follows: Accumulated Other Comprehensive Loss 2023 2022 2021 In millions Cumulative Translation Adjustment Beginning balance $ (54) $ (53) $ (55) Unrealized gains (losses) on foreign currency translation 1 — 2 (Gains) losses reclassified from AOCL to net income 1 — (1) — Other comprehensive income (loss), net of tax 1 (1) 2 Ending balance $ (53) $ (54) $ (53) Pension and Other Postretirement Benefits Beginning balance $ (1,348) $ (1,498) $ (1,715) Gains (losses) arising during the period (116) 96 180 Tax (expense) benefit 25 (22) (43) Net gains (losses) arising during the period (91) 74 137 Amortization of net loss and prior service credit reclassified from AOCL to net income 2 194 98 104 Tax expense (benefit) 3 (45) (22) (24) Net loss and prior service credit reclassified from AOCL to net income 149 76 80 Other comprehensive income (loss), net of tax 58 150 217 Ending balance $ (1,290) $ (1,348) $ (1,498) Total AOCL ending balance $ (1,343) $ (1,402) $ (1,551) 1. Reclassified to "Sundry income (expense) - net." 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 15 for additional information. 3. Reclassified to "Provision for income taxes." |
PENSION PLANS AND OTHER POSTRET
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS Pension Plans The Corporation has both funded and unfunded defined benefit plans in the United States, which covered substantially all U.S. employees through December 31, 2023. On March 4, 2021, TDCC announced changes to the design of its U.S. tax-qualified and non-qualified pension plans, including the plans of the Corporation (the “UCC Plans”). As a result, effective December 31, 2023, the Corporation froze the pensionable compensation and credited service amounts used to calculate pension benefits for substantially all employees who participated in the UCC Plans, except for certain employees subject to collective bargaining agreements, and impacted employees will not accrue additional benefits for future service and compensation. In connection with the plan amendments, the Corporation remeasured the UCC Plans effective February 28, 2021, which resulted in a pretax actuarial gain of $87 million, reflected in other comprehensive income and inclusive of a $14 million reduction in the projected benefit obligation resulting from the plan amendments, and a pretax curtailment gain of $7 million, recognized in the first quarter of 2021. Separately, in the fourth quarter of 2023, certain of the Corporation’s tax-qualified pension plans purchased a nonparticipating group annuity contract from an insurance company, irrevocably transferring approximately $230 million of benefit obligations and $210 million of related plan assets to the insurers. This transaction did not require any cash funding from the Corporation and did not impact the pension benefits of participants. As a result of this transaction, the Corporation recognized a non-cash pretax settlement charge of $ 149 million The Corporation's funding policy is to contribute to the plan when pension laws or economics either require or encourage funding. In 2023, UCC contributed $2 million to its pension plans, including contributions to fund benefit payments for its non-qualified supplemental plan. UCC expects to contribute approximately $2 million to its pension plans in 2024. The weighted-average assumptions used to determine pension plan obligations and net periodic benefit cost are provided below: Pension Plan Assumptions Benefit Obligations Net Periodic Benefit Cost 2023 2022 2023 2022 2021 Discount rate 5.25 % 5.60 % 5.72 % 2.94 % 2.86 % Interest crediting rate for applicable benefits 4.50 % 4.50 % 4.50 % 4.50 % 4.50 % Rate of compensation increase 4.25 % 4.25 % 4.25 % 4.25 % 4.25 % Expected return on plan assets 6.80 % 6.80 % 6.80 % Other Postretirement Benefit Plans The Corporation provides certain health care and life insurance benefits to retired U.S. employees and survivors. The plan provides health care benefits, including hospital, physicians' services, drug and major medical expense coverage and life insurance benefits. The Corporation and the retiree share the cost of these benefits, with the Corporation portion increasing as the retiree has increased years of credited service, although there is a cap on the Corporation portion. The Corporation has the ability to change these benefits at any time. Employees hired after January 1, 2008, are not covered under this plan. The Corporation funds most of the cost of these health care and life insurance benefits as incurred. In 2023, UCC did not make any contributions to its other postretirement benefit plan trust. Likewise, UCC does not expect to contribute assets to its other postretirement benefit plan trust in 2024. The weighted-average assumptions used to determine other postretirement benefit plan obligations and net periodic benefit cost for the plan are provided in the following table: Other Postretirement Benefit Plan Assumptions Benefit Obligations at Dec 31 Net Periodic Benefit Cost for the Year Ended 2023 2022 2023 2022 2021 Discount rate 5.20 % 5.56 % 5.56 % 2.84 % 2.34 % Health care cost trend rate assumed for next year 6.50 % 6.57 % 6.57 % 6.50 % 6.75 % Rate to which the cost trend rate is assumed to decline (the ultimate health care cost trend rate) 5.00 % 5.00 % 5.00 % 5.00 % 5.00 % Year that the rate reaches the ultimate health care cost trend rate 2033 2033 2033 2028 2028 Assumptions The Corporation determines the expected long-term rate of return on plan assets by performing a detailed analysis of key economic and market factors driving historical returns for each asset class and formulating a projected return based on factors in the current environment. Factors considered include, but are not limited to, inflation, real economic growth, interest rate yield, interest rate spreads, and other valuation measures and market metrics. The expected long-term rate of return for each asset class is then weighted based on the strategic asset allocation approved by the governing body for each plan. The Corporation's historical experience with the pension fund asset performance is also considered. The Corporation uses the spot rate approach to determine the discount rate utilized to measure the service cost and interest cost components of net periodic pension and other postretirement benefit costs. Under the spot rate approach, the Corporation calculates service cost and interest cost by applying individual spot rates from the Willis Towers Watson U.S. RATE:Link 60-90 corporate yield curve (based on 60th to 90th percentile high-quality corporate bond yields) to the separate expected cash flow components of service cost and interest cost. The discount rates utilized to measure the pension and other postretirement obligations of the plans were based on the yield on high-quality corporate fixed income investments at the measurement date. Future expected actuarially determined cash flows for the plans are individually discounted at the spot rates under the Willis Towers Watson U.S. RATE:Link 60-90 corporate yield curve (based on 60th to 90th percentile high-quality corporate bond yields) to arrive at the plan’s obligations as of the measurement date. The Corporation's mortality assumption used for the U.S. plans is a benefit-weighted version of the Society of Actuaries' RP-2014 base table with future rates of mortality improvement based on a modified version of the assumptions used in the Social Security Administration's 2021 trustees report. Summarized information on the Corporation's pension and other postretirement benefit plans is as follows: Change in Projected Benefit Obligations, Plan Assets and Funded Status for All Plans Defined Benefit Other Postretirement Benefit Plan In millions 2023 2022 2023 2022 Change in projected benefit obligations: Benefit obligations at beginning of year $ 2,860 $ 3,940 $ 128 $ 174 Service cost 32 37 — 1 Interest cost 147 91 7 3 Actuarial changes in assumptions and experience 55 (826) 6 (48) Benefits paid (246) (265) (8) (2) Termination of benefits/settlement 1 (211) — — — Acquisition/divestiture/other 2 (4) (117) — — Benefit obligations at end of year $ 2,633 $ 2,860 $ 133 $ 128 Change in plan assets: Fair value of plan assets at beginning of year $ 2,679 $ 3,611 $ — $ — Actual return on plan assets 146 (556) — — Employer contributions 2 3 — — Asset transfers (5) (8) — — Benefits paid (246) (265) — — Settlement 3 (211) — — — Other 4 5 (106) — — Fair value of plan assets at end of year $ 2,370 $ 2,679 $ — $ — Funded status at end of year $ (263) $ (181) $ (133) $ (128) Net amounts recognized in the consolidated balance sheets at Dec 31: Deferred charges and other assets $ 10 $ — $ — $ — Accrued and other current liabilities (2) (2) (12) (12) Pension and other postretirement benefits - noncurrent (271) (179) (121) (116) Net amount recognized $ (263) $ (181) $ (133) $ (128) Pretax amounts recognized in accumulated other comprehensive loss at Dec 31: Net loss (gain) $ 1,752 $ 1,852 $ (102) $ (124) 1. The 2023 impact primarily relates to the transfer of certain pension benefit obligations through the purchase of annuity contracts from an insurance company, triggering settlement accounting. 2. The 2022 impact primarily relates to the transfer of certain pension benefit obligations through the purchase of annuity contracts from an insurance company. 3. The 2023 impact primarily relates to the purchase of an annuity contract associated with the transfer of certain pension benefit obligations to an insurance company, triggering settlement accounting. 4. The 2022 impact primarily relates to the purchase of an annuity contract associated with the transfer of benefit obligations to an insurance company. A significant component of the overall decrease in the Corporation's benefit obligation for the year ended December 31, 2023, was due to the irrevocable transfer of certain benefit obligations to a third-party insurance company, partially offset by the change in weighted-average discount rates, which decreased from 5.60 percent at December 31, 2022, to 5.25 percent at December 31, 2023. A significant component of the overall decrease in the Corporation's benefit obligation for the year ended December 31, 2022 was due to the change in weighted-average discount rates, which increased from 2.94 percent at December 31, 2021, to 5.60 percent at December 31, 2022. The accumulated benefit obligation for all defined benefit pension plans was $2.6 billion at December 31, 2023, and $2.9 billion at December 31, 2022. Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets at Dec 31 In millions 2023 2022 Accumulated benefit obligations $ 2,593 $ 2,859 Fair value of plan assets $ 2,320 $ 2,679 Pension Plans with Projected Benefit Obligations in Excess of Plan Assets at Dec 31 2023 2022 In millions Projected benefit obligations $ 2,593 $ 2,860 Fair value of plan assets $ 2,320 $ 2,679 Net Periodic Benefit Cost (Credit) for All Plans for the Year Ended Dec 31 Defined Benefit Pension Plans Other Postretirement Benefit Plan In millions 2023 2022 2021 2023 2022 2021 Net Periodic Benefit Cost (Credit): Service cost $ 32 $ 37 $ 26 $ — $ 1 $ 1 Interest cost 147 91 80 7 3 3 Expected return on plan assets (204) (226) (219) — — — Amortization of prior service credit — (1) (1) — — — Amortization of net (gain) loss 60 108 116 (15) (9) (4) Curtailment and settlement (gain) loss 1 149 — (7) — — — Net periodic benefit cost (credit) $ 184 $ 9 $ (5) $ (8) $ (5) $ — Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss: Net (gain) loss $ 109 $ (47) $ (144) $ 7 $ (49) $ (36) Amortization of prior service credit — 1 1 — — — Amortization of net gain (loss) (60) (108) (116) 15 9 4 Curtailment and settlement gain (loss) 1 (149) — 7 — — — Total recognized in other comprehensive (income) loss $ (100) $ (154) $ (252) $ 22 $ (40) $ (32) Total recognized in net periodic benefit cost and other comprehensive (income) loss $ 84 $ (145) $ (257) $ 14 $ (45) $ (32) 1. The 2023 impact relates to the settlement of certain pension benefit obligations through the purchase of a nonparticipating group annuity contract from an insurer. The 2021 impact relates to the freeze of pensionable compensation and credited service amounts for employees that participate in the UCC Plans. Net periodic benefit cost (credit), other than the service cost component, is included in "Sundry income (expense) - net" in the consolidated statements of income. See Note 5 for additional information. Estimated Future Benefit Payments The estimated future benefit payments, reflecting expected future service, as appropriate, are presented in the following table: Estimated Future Benefit Payments at Dec 31, 2023 Defined Benefit Pension Plans Other Postretirement Benefit Plan In millions 2024 $ 238 $ 13 2025 213 13 2026 210 13 2027 207 12 2028 203 12 2029 through 2033 945 51 Total $ 2,016 $ 114 Plan Assets Plan assets consist primarily of equity and fixed income securities of U.S. and foreign issuers, and include alternative investments, such as real estate, private equity and other absolute return strategies. Plan assets totaled $2.4 billion at December 31, 2023 and $2.7 billion at December 31, 2022 and included no directly held common stock of Dow Inc. The Corporation's investment strategy for plan assets is to manage the assets in relation to the liability in order to pay retirement benefits to plan participants over the life of the plans. This is accomplished by identifying and managing the exposure to various market risks, diversifying investments across various asset classes and earning an acceptable long-term rate of return consistent with an acceptable amount of risk, while considering the liquidity needs of the plan. The plan is permitted to use derivative instruments for investment purposes, as well as for hedging the underlying asset and liability exposures and rebalancing the asset allocation. The plan uses value-at-risk, stress testing, scenario analysis and Monte Carlo simulation to monitor and manage both the risk within the portfolios and the surplus risk of the plan. Equity securities primarily include investments in large- and small-cap companies located in both developed and emerging markets around the world. Fixed income securities are primarily U.S. dollar based and include U.S. treasuries and investment grade corporate bonds of companies diversified across industries. Alternative investments primarily include investments in real estate, private equity and absolute return strategies. Other significant investment types include various insurance contracts and interest rate, equity, commodity and foreign exchange derivative investments and hedges. The Corporation mitigates the credit risk of investments by establishing guidelines with investment managers that limit investment in any single issue or issuer to an amount that is not material to the portfolio being managed. These guidelines are monitored for compliance both by the Corporation and the external managers. Credit risk related to derivative activity is mitigated by utilizing multiple counterparties, collateral support agreements, and centralized clearing where appropriate. A short-term investment money market fund is utilized as the sweep vehicle for the pension plan, which from time to time can represent a significant investment. The weighted-average target allocation for plan assets of the Corporation's pension plan is summarized as follows: Target Allocation for Plan Assets at Dec 31, 2023 Target Allocation Asset Category Equity securities 23 % Fixed income securities 45 Alternative investments 27 Other 5 Total 100 % Fair value calculations may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Corporation believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. For pension plan assets classified as Level 1 measurements (measured using quoted prices in active markets), total fair value is either the price of the most recent trade at the time of the market close or the official close price, as defined by the exchange on which the asset is most actively traded on the last trading day of the period, multiplied by the number of units held without consideration of transaction costs. For pension plan assets 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. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance and quality checks. For derivative assets and liabilities, standard industry models are used to calculate the fair value of the various financial instruments based on significant observable market inputs such as foreign exchange rates, commodity prices, swap rates, interest rates, and implied volatilities obtained from various market sources. For other assets for which observable inputs are used, fair value is derived through the use of fair value models, such as a discounted cash flow model or other standard pricing models. For pension plan assets classified as Level 3 measurements, total fair value is based on significant unobservable inputs including assumptions where there is little, if any, market activity for the investment. Certain pension plan assets are held in funds where fair value is based on an estimated net asset value per share (or its equivalent) as of the most recently available fund financial statements which are received on a monthly or quarterly basis. These valuations are reviewed for reasonableness based on applicable sector, benchmark and company performance. Adjustments to valuations are made where appropriate to arrive at an estimated net asset value per share at the measurement date. These funds are not classified within the fair value hierarchy. The following table summarizes the bases used to measure the Corporation’s pension plan assets at fair value for the years ended December 31, 2023 and 2022: Basis of Fair Value Measurements Dec 31, 2023 Dec 31, 2022 In millions Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 203 $ 188 $ 15 $ — $ 224 $ 172 $ 52 $ — Equity securities: U.S. equity securities $ 239 $ 238 $ 1 $ — $ 288 $ 288 $ — $ — Non - U.S. equity securities 250 238 11 1 255 244 11 — Total equity securities $ 489 $ 476 $ 12 $ 1 $ 543 $ 532 $ 11 $ — Fixed income securities: Debt - government-issued $ 720 $ — $ 720 $ — $ 665 $ 1 $ 664 $ — Debt - corporate-issued 265 1 264 — 442 1 441 — Debt - asset-backed 37 — 37 — 20 — 20 — Total fixed income securities $ 1,022 $ 1 $ 1,021 $ — $ 1,127 $ 2 $ 1,125 $ — Alternative investments: Private markets $ — $ — $ — $ — $ 2 $ — $ — $ 2 Derivatives - asset position 7 — 7 — 5 — 5 — Derivatives - liability position (13) — (13) — (16) — (16) — Total alternative investments $ (6) $ — $ (6) $ — $ (9) $ — $ (11) $ 2 Other investments $ 1 $ 1 $ — $ — $ 3 $ 2 $ 1 $ — Subtotal $ 1,709 $ 666 $ 1,042 $ 1 $ 1,888 $ 708 $ 1,178 $ 2 Investments measured at net asset value: Hedge funds $ 125 $ 142 Private markets 344 411 Real estate 199 240 Total investments measured at net asset value $ 668 $ 793 Items to reconcile to fair value of plan assets: Pension trust receivables 1 $ 7 $ 4 Pension trust payables 2 (14) (6) Total $ 2,370 $ 2,679 1. Primarily receivables for investment securities sold. 2. Primarily payables for investment securities purchased. The following table summarizes the changes in fair value of Level 3 pension plan assets for the years ended December 31, 2023 and 2022: Fair Value Measurement of Level 3 Pension Plan Assets Equity Securities Alternative Investments Total In millions Balance at Jan 1, 2022 $ 1 $ 2 $ 3 Actual return on plan assets: Relating to assets held at Dec 31, 2022 (1) (2) (3) Purchases, sales and settlements — 2 2 Balance at Dec 31, 2022 $ — $ 2 $ 2 Actual return on plan assets: Relating to assets held at Dec 31, 2023 1 (2) (1) Balance at Dec 31, 2023 $ 1 $ — $ 1 Defined Contribution Plans In addition to the qualified defined benefit pension plan, U.S. employees may participate in defined contribution plans by contributing a portion of their compensation, which is partially matched by the Corporation. Expense recognized for all defined contribution plans was $12 million in 2023, $12 million in 2022 and $8 million in 2021. |
LEASES (Notes)
LEASES (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Lessee, Operating And Finance Leases | LEASES Operating lease ROU assets are included in "Operating lease right-of-use assets" and finance lease ROU assets are included in "Net property" in the consolidated balance sheets. With respect to lease liabilities, operating lease liabilities are included in "Operating lease liabilities - current" and "Operating lease liabilities - noncurrent," and finance lease liabilities are included in "Long-term debt due within one year" and "Long-Term Debt" in the consolidated balance sheets. The Corporation routinely leases product and utility production facilities, sales and administrative offices, warehouses and tanks for product storage, motor vehicles, railcars, office machines and equipment. Some leases contain renewal provisions, purchase options and escalation clauses. The terms for these leased assets vary depending on the lease agreement. These leased assets have remaining lease terms of up to 21 years. The Corporation's lease agreements do not contain any material residual value guarantees or restrictive covenants. The components of lease cost for operating and finance leases for the years ended December 31, 2023, 2022 and 2021 were as follows: Lease Cost 2023 2022 2021 In millions Operating lease cost $ 25 $ 25 $ 23 Short-term lease cost 41 31 28 Variable lease cost 25 19 39 Amortization of right-of-use assets - finance 3 3 3 Total lease cost $ 94 $ 78 $ 93 The following table provides supplemental cash flow and other information related to leases: Other Lease Information 2023 2022 2021 In millions Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 24 $ 25 $ 23 Financing cash flows for finance leases $ 3 $ 3 $ 3 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 12 $ 2 $ 15 Finance leases $ 2 $ 1 $ 5 The following table summarizes the lease-related assets and liabilities recorded in the consolidated balance sheets at December 31, 2023 and 2022: Lease Position Balance Sheet Classification Dec 31, 2023 Dec 31, 2022 In millions Assets Operating lease assets Operating lease right-of-use assets $ 85 $ 107 Finance lease assets Property 14 20 Finance lease amortization Accumulated depreciation (12) (13) Total lease assets $ 87 $ 114 Liabilities Current Operating Operating lease liabilities - current $ 17 $ 21 Finance Long-term debt due within one year 1 3 Noncurrent Operating Operating lease liabilities - noncurrent 68 87 Finance Long-Term Debt 2 4 Total lease liabilities $ 88 $ 115 The weighted-average remaining lease term and discount rate for leases recorded in the consolidated balance sheets at December 31, 2023 and 2022 are provided below: Lease Term and Discount Rate Dec 31, 2023 Dec 31, 2022 Weighted-average remaining lease term Operating leases 6.7 years 6.3 years Finance leases 3.8 years 2.5 years Weighted-average discount rate Operating leases 3.42 % 3.43 % Finance leases 4.38 % 2.33 % The following table provides the maturities of lease liabilities at December 31, 2023: Maturities of Lease Liabilities Dec 31, 2023 In millions Operating Leases Finance Leases 2024 $ 19 $ 1 2025 18 1 2026 17 1 2027 11 — 2028 10 — 2029 and thereafter 20 — Total future undiscounted lease payments $ 95 $ 3 Less: Imputed interest 10 — Total present value of lease liabilities $ 85 $ 3 At December 31, 2023, the Corporation had no additional leases for assets that have not yet commenced. |
FAIR VALUE MEASUREMENTS (Notes)
FAIR VALUE MEASUREMENTS (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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. Assets that are measured using significant other observable inputs are primarily valued by reference to quoted prices of similar assets in active markets, adjusted for any terms specific to that asset. For all other assets for which observable inputs are used, fair value is derived through the use of fair value models, such as a discounted cash flow model or other standard pricing models. There were no transfers between Levels 1 and 2 in the years ended December 31, 2023 and 2022. The following table summarizes the fair value of the Corporation's financial instruments at December 31, 2023 and 2022: Fair Value of Financial Instruments 2023 2022 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 $ (260) $ — $ (47) $ (307) $ (394) $ — $ (29) $ (423) 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. Fair Value Measurements on a Nonrecurring Basis In 2023, as part of the 2023 Restructuring Program, the Corporation rationalized its manufacturing assets to achieve its structural cost improvement initiatives. The manufacturing assets associated with this plan, classified as Level 3 measurements and valued using unobservable inputs, were written down to zero and the Corporation recorded an impairment charge of $2 million, which was included in "Restructuring and asset related charges - net" in the consolidated statements of income. |
RELATED PARTY TRANSACTIONS (Not
RELATED PARTY TRANSACTIONS (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | RELATED PARTY TRANSACTIONS U.S. Gulf Coast Infrastructure Assets As part of the Corporation's and TDCC's application of a best-owner mindset when reviewing non-product producing assets and to allow UCC and TDCC to have more visibility into the operations and economics of such assets, on November 1, 2023, UCC and certain other TDCC subsidiaries contributed certain production supporting infrastructure assets on the U.S. Gulf Coast (which are not product-producing assets themselves) to a TDCC subsidiary that will manage the contributed assets ("TDCC Infrastructure Subsidiary") in exchange for a membership interest ("Common Control Membership Interest") in the TDCC Infrastructure Subsidiary. The carrying value of net assets contributed by UCC was $389 million. In connection with this contribution, TDCC and UCC entered into various agreements, designating UCC to receive or provide certain site services as defined under the agreements. Such agreements were designed to ensure the continuation of services to support UCC's existing operations. UCC recognized equity earnings of $10 million in the fourth quarter of 2023 related to this investment, recorded in "Sundry income (expense) - net" in the consolidated statements of income. On December 1, 2023, UCC sold its Common Control Membership Interest to another TDCC subsidiary in exchange for a $1,543 million term loan receivable, recorded in "Noncurrent receivables from related companies" in the consolidated balance sheets. This loan bears interest based on alternative reference rates and matures on December 1, 2043. This transaction was accounted for as a transfer between entities under common control, which resulted in an increase to additional paid in capital of $893 million, net of tax of $251 million, and recorded in "Additional Paid-in Capital" in the consolidated statements of equity. Sale of Ownership Interest in Dow Technology Investments LLC ("DTIL") In December 2023, the Corporation sold a portion of its 50 percent ownership interest in DTIL, which has no carrying value, to its joint venture partner, Dow Global Technologies LLC, a TDCC subsidiary, thereby reducing UCC's ownership interest in DTIL to 0.5 percent. As part of this transaction, the Corporation received cash proceeds and recognized a pretax gain of $206 million, recorded in "Sundry income (expense) - net" in the consolidated statements of income. The Corporation evaluated the divestment of the infrastructure assets on the U.S. Gulf Coast and the sale of a portion of its ownership interest in DTIL and determined they did not represent strategic shifts that had a major effect on the Corporation’s operations and financial results and did not qualify as an individually significant component of the Corporation. As a result, the transactions are not reported as discontinued operations. Product and Services Agreements The Corporation sells its products to TDCC to simplify the customer interface process. Products are sold to and purchased from TDCC at prices determined in accordance with the terms of an agreement between UCC and TDCC. After each quarter, the Corporation and TDCC analyze the pricing used for the sales in that quarter and reach agreement on any necessary adjustments, at which point the prices are final. The Corporation also procures certain commodities, raw materials, pipeline, storage and site services through TDCC and the TDCC Infrastructure Subsidiary and pays commissions and service fees based on the services, volume and type of commodities and raw materials purchased. The Corporation also has a master services agreement with TDCC, whereby TDCC provides services including, but not limited to: accounting; legal; treasury (investments, cash management, risk management, insurance); procurement; human resources; environmental; health and safety; and business management for UCC. Under the master services agreement with TDCC, general administrative and overhead type services that TDCC routinely allocates to various businesses are charged to UCC. The master services agreement cost allocation basis is headcount and includes a 10 percent service fee. The following table summarizes UCC’s transactions with TDCC and a TDCC subsidiary related to product and services agreements for the years ended December 31, 2023, 2022 and 2021: Product and Services Agreements Transactions 2023 2022 2021 Income Statement In millions Classification Commodity and raw materials purchases 1 $ 1,078 $ 1,909 $ 1,915 Cost of sales Commission expense $ 19 $ 19 $ 21 Sundry income (expense) - net General administrative and overhead type services and service fee 2 $ 72 $ 65 $ 63 Sundry income (expense) - net Activity-based costs 2 $ 158 $ 89 $ 74 Cost of sales 1. Period-end balances on hand are included in inventory. The 2023 decrease in purchase costs was primarily due to lower feedstock and energy costs on lower production. 2. The 2023 increase was due to changes in cost flows and the cost of site infrastructure services resulting from UCC's divestment of certain non-product producing infrastructure assets to another TDCC subsidiary in the fourth quarter of 2023. Management believes the method used for determining expenses charged by TDCC is reasonable. TDCC provides these services by leveraging its centralized functional service centers to provide services at a cost that management believes provides an advantage to the Corporation. The monitoring and execution of risk management policies related to interest rate and foreign currency risks, which are based on TDCC’s risk management philosophy, are provided as a service to UCC. The Corporation incurred asset losses and other costs and experienced lost sales and margins due to severe weather events that impacted the U.S. Gulf Coast in 2021. These costs and losses are covered, in part, by an insurance program purchased by TDCC from its insurance affiliate. In December 2021, the Corporation recorded an insurance recovery of $114 million from TDCC for the Corporation’s share of covered losses and incurred costs, included in "Cost of sales" in the consolidated statements of income. Proceeds from this insurance recovery were received in 2022. Tax Sharing Agreement In accordance with the Tax Sharing Agreement between the Corporation and TDCC, the Corporation makes payments to TDCC to cover the Corporation's estimated federal tax liability; payments were $113 million in 2023, $155 million in 2022 and $42 million in 2021. Cash Management As part of TDCC’s cash management process, UCC is a party to a revolving loan with TDCC that matures December 30, 2024 and has interest rates based on alternative reference rates, effective January 1, 2022, and based on LIBOR (London Interbank Offered Rate) in prior periods. At December 31, 2023, the Corporation had a note receivable of $799 million ($958 million at December 31, 2022) from TDCC under this agreement. The Corporation may draw from this note in support of its daily working capital requirements and, as such, the net effect of cash inflows and outflows under this revolving loan agreement is presented in the consolidated statements of cash flows as an operating activity. The Corporation also has a separate revolving credit agreement with TDCC that allows the Corporation to borrow or obtain credit enhancements up to an aggregate of $1 billion. TDCC may demand repayment with a 30-day written notice to the Corporation, subject to certain restrictions. A related collateral agreement provides for the replacement of certain existing pledged assets, primarily equity interests in various subsidiaries and joint ventures, with cash collateral. At December 31, 2023, $948 million was available under the revolving credit agreement ($942 million at December 31, 2022). The cash collateral was reported as "Noncurrent receivables from related companies" in the consolidated balance sheets. Dividends and Other Equity Transactions On a quarterly basis, the Corporation's Board of Directors ("Board") reviews and determines if there will be a dividend distribution to its parent company and sole shareholder, TDCC. The Board takes into consideration the level of earnings and cash flows, among other factors, in determining the amount of the dividend distribution. The following table summarizes cash dividends declared and paid to TDCC for the years ended 2023, 2022 and 2021: Cash Dividends Declared and Paid 2023 2022 2021 In millions Cash dividends declared and paid $ 512 $ 1,063 $ 288 |
BUSINESS AND GEOGRAPHIC AREAS (
BUSINESS AND GEOGRAPHIC AREAS (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Business and Geographic Regions | BUSINESS AND GEOGRAPHIC REGIONS TDCC conducts its worldwide operations through principal product groups, and the Corporation's business activities comprise components of TDCC's principal product groups rather than stand-alone operations. The Corporation sells substantially all of its products to TDCC in order to simplify the customer interface process, at prices determined in accordance with the terms of an agreement between UCC and TDCC. Because there are no separate reportable business segments for the Corporation 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. Sales are attributed to geographic regions based on customer location; long-lived assets are attributed to geographic regions based on asset location. Sales to external customers and long-lived assets by geographic region were as follows: Geographic Region Information United States Asia Pacific Rest of World Total In millions 2023 Sales to external customers 1 $ 117 $ 30 $ — $ 147 Long-lived assets $ 862 $ 21 $ 11 $ 894 2022 Sales to external customers 1 $ 182 $ 3 $ 6 $ 191 Long-lived assets $ 1,149 $ 22 $ 11 $ 1,182 2021 Sales to external customers 1 $ 139 $ 4 $ 11 $ 154 Long-lived assets $ 1,169 $ 24 $ 15 $ 1,208 1. Of total sales to external customers, sales in Malaysia were approximately 20 percent in 2023, 1 percent in 2022 and 2 percent in 2021, and are included in Asia Pacific. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation Except as otherwise indicated by the context, the terms "Corporation" and "UCC" as used herein mean Union Carbide Corporation and its consolidated subsidiaries. The accompanying consolidated financial statements of the Corporation were prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and include the assets, liabilities, revenues and expenses of all majority-owned subsidiaries over which the Corporation exercises control and, when applicable, entities for which the Corporation has a controlling financial interest. Investments in nonconsolidated affiliates (20-50 percent owned companies, joint ventures and partnerships) are accounted for using the equity method. 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. TDCC conducts its worldwide operations through global businesses. The Corporation’s business activities comprise components of TDCC’s global businesses rather than stand-alone operations. 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 ("CODM") 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 17 for additional information. |
Use of Estimates in Financial Statement Preparation | Use of Estimates in Financial Statement Preparation The preparation of financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The Corporation's consolidated financial statements include amounts that are based on management's best estimates and judgments. Actual results could differ from those estimates. |
Asbestos-Related Matters | Asbestos-Related Matters Accruals for asbestos-related matters, including defense and processing costs, are recorded based on an analysis of claim and resolution activity, defense spending and pending and future claims. These accruals are assessed at each balance sheet date to determine if the asbestos-related liability remains appropriate. Accruals for asbestos-related matters are included in the consolidated balance sheets in "Asbestos-related liabilities - current" and "Asbestos-related liabilities - noncurrent." See Note 12 for additional information. |
Legal Costs | Legal Costs The Corporation expenses legal costs as incurred, with the exception of defense and processing costs associated with asbestos-related matters. |
Foreign Currency Translation | Foreign Currency Translation While the Corporation's consolidated subsidiaries are primarily based in the United States, the Corporation has small subsidiaries in Asia Pacific and the rest of the world. For those subsidiaries, the local currency has been primarily used as the functional currency. Translation gains and losses of those operations that use local currency as the functional currency are included in the consolidated balance sheets in "Accumulated other comprehensive loss" ("AOCL"). Where the U.S. dollar is used as the functional currency, foreign currency translation gains and losses are reflected in income. |
Environmental Matters | 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. These accruals are adjusted periodically as assessment and remediation efforts progress or as additional technical or legal information becomes available. Accruals for environmental liabilities are included in the consolidated balance sheets in "Accrued and other current liabilities" and "Other noncurrent obligations" at undiscounted amounts. Accruals for related insurance or other third-party recoveries for environmental liabilities are recorded when it is probable that a recovery will be realized and are included in the consolidated balance sheets in "Accounts receivable - Other." Environmental costs are capitalized if the costs extend the life of the property, increase its capacity, and/or mitigate or prevent contamination from future operations. Environmental costs are also capitalized in recognition of legal asset retirement obligations resulting from the acquisition, construction and/or normal operation of a long-lived asset. Costs related to environmental contamination treatment and cleanup are charged to expense. Estimated future incremental operations, maintenance and management costs directly related to remediation are accrued when such costs are probable and reasonably estimable. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include time deposits and investments with maturities of three months or less at the time of purchase. |
Financial Instruments | Financial Instruments The Corporation calculates the fair value of financial instruments using quoted market prices when available. When quoted market prices are not available for financial instruments, the Corporation uses standard pricing models with market-based inputs that take into account the present value of estimated future cash flows. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. The method of determining cost for each subsidiary varies among last-in, first-out ("LIFO"); first-in, first-out ("FIFO"); and average cost, and is used consistently from year to year. The Corporation routinely exchanges and swaps raw materials and finished goods with other companies to reduce delivery time, freight and other transportation costs. These transactions are treated as non-monetary exchanges and are valued at cost. |
Property | Property Land, buildings and equipment are carried at cost less accumulated depreciation or amortization. Property under finance lease agreements is carried at the present value of lease payments over the lease term less accumulated amortization. Depreciation is based on the estimated service lives of depreciable assets and is calculated using the straight-line method. Fully depreciated assets are retained in property and accumulated depreciation accounts until they are disposed. In the case of disposals, assets and related accumulated depreciation are removed from the accounts, and the net amounts, less proceeds from disposal, are included in income. |
Impairment and Disposal of Long-Lived Assets | Impairment and Disposal of Long-Lived Assets The Corporation evaluates long-lived assets (property, finite-lived intangible assets and lease right-of-use assets) for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When undiscounted future cash flows are not expected to be sufficient to recover an asset's carrying amount, the asset is written down to its fair value based on bids received from third parties or a discounted cash flow analysis based on market participant assumptions. Long-lived assets to be disposed of by sale, if material, are classified as held for sale and reported at the lower of carrying amount or fair value less cost to sell, and depreciation/amortization is ceased. Long-lived assets to be disposed of other than by sale are classified as held and used until they are disposed of and reported at the lower of carrying amount or fair value, and depreciation/amortization is recognized over the remaining useful life of the assets. |
Other Intangible Assets | Intangible Assets Finite-lived intangible assets, such as developed technology and software, are amortized over their estimated useful lives, generally on a straight-line basis for periods ranging primarily from 3 to 20 years. |
Investments in Related Companies | Investments in Related Companies Investments in related companies consist of the Corporation's ownership interests in TDCC subsidiaries located in the United States and Latin America. The Corporation accounts for these investments using the cost method as it does not have significant influence over the operating and financial policies of these related companies. |
Lessee, Leases [Policy Text Block] | Leases UCC determines whether a contract contains a lease at contract inception. A contract contains a lease if there is an identified asset and the Corporation has the right to control the asset. Operating lease right-of-use (“ROU”) assets represent UCC’s right to use an underlying asset for the lease term, and lease liabilities represent UCC’s obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. UCC uses the incremental borrowing rate in determining the present value of lease payments, unless the implicit rate is readily determinable. If lease terms include options to extend or terminate the lease, the ROU asset and lease liability are measured based on the reasonably certain decision. Leases with a term of 12 months or less at the commencement date are not recognized on the balance sheet and are expensed as incurred. UCC has lease agreements with lease and non-lease components, which are accounted for as a single lease component for nearly all classes of leased assets for which UCC is the lessee. Additionally, for certain equipment leases, the portfolio approach is applied to account for the operating lease ROU assets and lease liabilities. In the consolidated statements of income, lease expense for operating lease payments is recognized on a straight-line basis over the lease term. For finance leases, interest expense is recognized on the lease liability and the ROU asset is amortized over the lease term. Some leasing arrangements require variable payments that are dependent upon usage or output, or may vary for other reasons, such as insurance or tax payments. Variable lease payments are recognized as incurred and are not presented as part of the ROU asset or lease liability. See Note 13 for additional information. |
Revenue | Revenue Substantially all of the Corporation's revenues are generated by sales to TDCC. Revenue for product sales to related companies is recognized when the related company obtains control of the product, which occurs either at the time that production is complete or shipped free on board ("FOB") from UCC's manufacturing facility, in accordance with the sales agreement between the Corporation and TDCC. The Corporation recognizes revenue for product sales to trade customers when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Corporation expects to receive in exchange for those goods or services. To determine revenue recognition, the Corporation performs the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. See Note 3 for additional information. |
Severance Costs | Severance Costs Management routinely reviews its operations around the world in an effort to ensure competitiveness across its operations and geographic regions. When the reviews result in a workforce reduction related to the shutdown of facilities or other optimization activities, severance benefits are provided to employees primarily under ongoing benefit arrangements. These severance costs are accrued once management commits to a plan of termination and it becomes probable that employees will be entitled to benefits at amounts that can be reasonably estimated. |
Income Taxes | Income Taxes The Corporation accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities using enacted tax rates. The effect of a change in tax rates on deferred tax assets or liabilities is recognized in income in the period that includes the enactment date. The Corporation is included in the same consolidated federal income tax group and consolidated income tax return as TDCC. The Corporation accounts for its income taxes following the formula in the TDCC-UCC Tax Sharing Agreement used to compute the amount due to TDCC or UCC for UCC's share of taxable income and tax attributes on the consolidated income tax return. This method generally follows the separate return method. The amounts reported as income taxes payable or receivable represent the Corporation's payment obligation (or refundable amount) to TDCC based on a theoretical tax liability calculated on a separate return method. The Corporation recognizes the financial statement effects of an uncertain income tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. The Corporation accrues for non-income tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated. Provision is made for taxes on undistributed earnings of foreign subsidiaries and related companies to the extent that such earnings are not deemed to be permanently invested. |
SUPPLEMENTARY INFORMATION (Tabl
SUPPLEMENTARY INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplementary Information [Abstract] | |
Sundry Income, Net | Sundry Income (Expense) - Net In millions 2023 2022 2021 General administrative and overhead type services and service fees 1 $ (72) $ (65) $ (63) Net commission expense - related company 1 (19) (19) (21) Non-operating pension and other postretirement benefit plan net credits (costs) 2 (144) 34 32 Gain on sale of ownership interest in related party 3 206 — — Net gain on sales of property 1 3 6 Equity in earnings of nonconsolidated affiliate 1 10 — — Other - net (7) (6) (7) Total sundry income (expense) - net $ (25) $ (53) $ (53) 1. See Note 17 for additional information. 2. The 2023 expense includes pretax pension settlement charges of $ 149 million 3. The 2023 amount relates to the sale of a portion of the Corporation's ownership interest in Dow Technology Investments LLC. See Note 17 for additional information. |
Supplier Finance Program | The following table summarizes the outstanding obligations confirmed as valid under the SCF program for the year ended December 31, 2023: Supplier Finance Program Activity In millions 2023 Confirmed obligations outstanding at Jan 1 $ 29 Invoices confirmed to financial intermediary 102 Confirmed invoices paid to financial intermediary (104) Confirmed obligations outstanding at Dec 31 $ 27 |
Schedule of Cash Flow, Supplemental Disclosures | The following table shows cash paid (refunded) for interest and income taxes for the years ended December 31, 2023, 2022 and 2021: Supplemental Cash Flow Information 2023 2022 2021 In millions Cash paid (refunded) during year for: Interest $ 26 $ 31 $ 31 Income taxes $ 102 $ 63 $ (62) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of geographic allocation of income | Geographic Allocation of Income and Provision for Income Taxes In millions 2023 2022 2021 Income (loss) before income taxes Domestic $ 455 $ 767 $ 531 Foreign (1) (1) (2) Income before income taxes $ 454 $ 766 $ 529 Current tax expense (benefit) Federal $ 96 $ 157 $ (11) State and local (6) 9 5 Foreign 1 1 20 Total current tax expense $ 91 $ 167 $ 14 Deferred tax expense (benefit) Federal $ (19) $ (2) $ 122 State and local 1 3 23 Foreign — 4 (5) Total deferred tax expense $ (18) $ 5 $ 140 Provision for income taxes $ 73 $ 172 $ 154 Net income $ 381 $ 594 $ 375 |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliation to U.S. Statutory Rate 2023 2022 2021 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % Unrecognized tax benefits and related interest (2.7) (0.7) 3.0 State and local tax impact (1.2) 1.7 5.3 Other - net (1.0) 0.5 (0.2) Effective Tax Rate 16.1 % 22.5 % 29.1 % |
Schedule of Deferred Tax Assets and Liabilities | Deferred Tax Balances at Dec 31 2023 2022 In millions Assets Liabilities Assets Liabilities Property $ — $ 123 $ — $ 154 Tax loss and credit carryforwards 11 — 26 — Postretirement benefit obligations 92 — 72 — Other accruals and reserves 270 — 293 3 Inventory 2 — 2 — Other - net 16 — 18 — Subtotal $ 391 $ 123 $ 411 $ 157 Valuation allowances 1 (11) — (15) — Total $ 380 $ 123 $ 396 $ 157 1. Primarily related to the realization of recorded tax benefits on state tax loss carryforwards from operations in the United States. |
Summary of Operating Loss Carryforwards | Operating Loss and Tax Credit Carryforwards at Dec 31 2023 2022 In millions Assets Assets Operating loss carryforwards Expire within 5 years $ 5 $ 8 Expire after 5 years or indefinite expiration 3 12 Total operating loss carryforwards $ 8 $ 20 Tax credit carryforwards Expire within 5 years $ 2 $ 5 Expire after 5 years or indefinite expiration 1 1 Total tax credit carryforwards $ 3 $ 6 Total tax loss and tax credit carryforwards $ 11 $ 26 |
Schedule of Total Gross Unrecognized Tax Benefits | The following table provides a reconciliation of the Corporation's unrecognized tax benefits: Total Gross Unrecognized Tax Benefits In millions 2023 2022 2021 Total unrecognized tax benefits at Jan 1 $ 8 $ 8 $ 1 Decreases related to positions taken on items from prior years — — (1) Increases related to positions taken on items from prior years — — 8 Total unrecognized tax benefits at Dec 31 $ 8 $ 8 $ 8 Total unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 8 $ 8 $ 8 Total amount of interest and penalties (benefit) recognized in "Provision for income taxes" $ (12) $ (10) $ 11 Total accrual for interest and penalties recognized in the consolidated balance sheets $ 11 $ 10 $ 12 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | The following table provides a breakdown of inventories: Inventories at Dec 31 In millions 2023 2022 Finished goods $ 189 $ 218 Work in process 30 37 Raw materials 60 76 Supplies 87 87 Total $ 366 $ 418 Adjustment of inventories to the LIFO basis (139) (162) Total inventories $ 227 $ 256 |
PROPERTY (Tables)
PROPERTY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property | The following table provides a breakdown of property: Property at Dec 31 Estimated Useful Lives (Years) In millions 2023 2022 Land and land improvements 0-25 $ 68 $ 186 Buildings 5-50 259 403 Machinery and equipment 3-20 4,799 5,993 Other property 3-30 111 383 Construction in progress — 169 139 Total property 1 $ 5,406 $ 7,104 |
Schedule of other items related to property | The following table provides information regarding depreciation expense and capitalized interest: In millions 2023 2022 2021 Depreciation expense $ 146 $ 165 $ 167 Capitalized interest $ 8 $ 5 $ 5 |
INVESTMENTS IN RELATED COMPAN_2
INVESTMENTS IN RELATED COMPANIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments in Related Companies [Abstract] | |
Equity Securities without Readily Determinable Fair Value | The Corporation's ownership interests in related companies at December 31, 2023 and 2022 were as follows: Investments in Related Companies at Dec 31 Ownership Interest Investment Balance In millions 2023 2022 2023 2022 Dow International Holdings Company 5 % 5 % $ 232 $ 232 Dow Quimica Mexicana S.A. de C.V. 14 % 14 % 5 5 Total investments in related companies $ 237 $ 237 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Intangible Assets and Goodwill | The following table provides information regarding the Corporation's intangible assets: Intangible Assets at Dec 31 2023 2022 In millions Gross Carrying Amount Accum Amort Net Gross Carrying Amount Accum Amort Net Intangible assets with finite lives: Developed technology $ 33 $ (33) $ — $ 33 $ (33) $ — Software 1 67 (60) 7 76 (67) 9 Total intangible assets $ 100 $ (93) $ 7 $ 109 $ (100) $ 9 1. In 2023, there was a $10 million decrease to the Gross Carrying Amount and Accumulated Amortization balances due to the Corporation's contribution of certain assets to the TDCC Infrastructure Subsidiary. See Note 17 for additional information. |
Schedule Of Finite Lived Intangible Assets Amortization Expense Table | The following table provides information regarding amortization expense: Amortization Expense In millions 2023 2022 2021 Software, included in "Cost of sales" $ 3 $ 5 $ 6 |
Schedule of Expected Amortization Expense | Total estimated amortization expense for the next five fiscal years, including amounts expected to be capitalized, is as follows: Estimated Amortization Expense for Next Five Years In millions 2024 $ 2 2025 $ 2 2026 $ 1 2027 $ 1 2028 $ 1 |
NOTES PAYABLE AND LONG-TERM D_2
NOTES PAYABLE AND LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | Notes Payable at Dec 31 In millions 2023 2022 Notes payable to related companies $ 68 $ 51 Notes payable - other 1 4 Total notes payable $ 69 $ 55 Year-end average interest rates 1.06 % 1.02 % |
Schedule of Long-term Debt Instruments | Long-Term Debt at Dec 31 2023 Average Rate 2023 2022 Average Rate 2022 In millions Promissory notes and debentures: Debentures due 2023 — % $ — 7.875 % $ 129 Debentures due 2025 6.79 % 12 6.79 % 12 Debentures due 2025 7.50 % 113 7.50 % 113 Debentures due 2096 7.75 % 135 7.75 % 135 Finance lease obligations 1 3 7 Unamortized debt discount and issuance costs (3) (2) Long-term debt due within one year (1) (132) Total long-term debt $ 259 $ 262 1. See Note 13 for additional information. |
Schedule of Maturities of Long-term Debt | Maturities of Long-Term Debt for Next Five Years at Dec 31, 2023 In millions 2024 $ 1 2025 $ 126 2026 $ 1 2027 $ — 2028 $ — |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Environmental Loss Contingency | The following table summarizes the activity in the Corporation's accrued obligations for environmental matters for the years ended December 31, 2023 and 2022: Accrued Liability for Environmental Matters In millions 2023 2022 Balance at Jan 1 $ 183 $ 148 Accrual adjustment 49 78 Payments against reserve (37) (42) Foreign currency impact (1) (1) Balance at Dec 31 $ 194 $ 183 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The changes in each component of AOCL for the years ended December 31, 2023, 2022 and 2021 were as follows: Accumulated Other Comprehensive Loss 2023 2022 2021 In millions Cumulative Translation Adjustment Beginning balance $ (54) $ (53) $ (55) Unrealized gains (losses) on foreign currency translation 1 — 2 (Gains) losses reclassified from AOCL to net income 1 — (1) — Other comprehensive income (loss), net of tax 1 (1) 2 Ending balance $ (53) $ (54) $ (53) Pension and Other Postretirement Benefits Beginning balance $ (1,348) $ (1,498) $ (1,715) Gains (losses) arising during the period (116) 96 180 Tax (expense) benefit 25 (22) (43) Net gains (losses) arising during the period (91) 74 137 Amortization of net loss and prior service credit reclassified from AOCL to net income 2 194 98 104 Tax expense (benefit) 3 (45) (22) (24) Net loss and prior service credit reclassified from AOCL to net income 149 76 80 Other comprehensive income (loss), net of tax 58 150 217 Ending balance $ (1,290) $ (1,348) $ (1,498) Total AOCL ending balance $ (1,343) $ (1,402) $ (1,551) 1. Reclassified to "Sundry income (expense) - net." 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 15 for additional information. 3. Reclassified to "Provision for income taxes." |
PENSION PLANS AND OTHER POSTR_2
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | Summarized information on the Corporation's pension and other postretirement benefit plans is as follows: Change in Projected Benefit Obligations, Plan Assets and Funded Status for All Plans Defined Benefit Other Postretirement Benefit Plan In millions 2023 2022 2023 2022 Change in projected benefit obligations: Benefit obligations at beginning of year $ 2,860 $ 3,940 $ 128 $ 174 Service cost 32 37 — 1 Interest cost 147 91 7 3 Actuarial changes in assumptions and experience 55 (826) 6 (48) Benefits paid (246) (265) (8) (2) Termination of benefits/settlement 1 (211) — — — Acquisition/divestiture/other 2 (4) (117) — — Benefit obligations at end of year $ 2,633 $ 2,860 $ 133 $ 128 Change in plan assets: Fair value of plan assets at beginning of year $ 2,679 $ 3,611 $ — $ — Actual return on plan assets 146 (556) — — Employer contributions 2 3 — — Asset transfers (5) (8) — — Benefits paid (246) (265) — — Settlement 3 (211) — — — Other 4 5 (106) — — Fair value of plan assets at end of year $ 2,370 $ 2,679 $ — $ — Funded status at end of year $ (263) $ (181) $ (133) $ (128) Net amounts recognized in the consolidated balance sheets at Dec 31: Deferred charges and other assets $ 10 $ — $ — $ — Accrued and other current liabilities (2) (2) (12) (12) Pension and other postretirement benefits - noncurrent (271) (179) (121) (116) Net amount recognized $ (263) $ (181) $ (133) $ (128) Pretax amounts recognized in accumulated other comprehensive loss at Dec 31: Net loss (gain) $ 1,752 $ 1,852 $ (102) $ (124) 1. The 2023 impact primarily relates to the transfer of certain pension benefit obligations through the purchase of annuity contracts from an insurance company, triggering settlement accounting. 2. The 2022 impact primarily relates to the transfer of certain pension benefit obligations through the purchase of annuity contracts from an insurance company. 3. The 2023 impact primarily relates to the purchase of an annuity contract associated with the transfer of certain pension benefit obligations to an insurance company, triggering settlement accounting. 4. The 2022 impact primarily relates to the purchase of an annuity contract associated with the transfer of benefit obligations to an insurance company. |
Schedule of Net Benefit Costs | Net Periodic Benefit Cost (Credit) for All Plans for the Year Ended Dec 31 Defined Benefit Pension Plans Other Postretirement Benefit Plan In millions 2023 2022 2021 2023 2022 2021 Net Periodic Benefit Cost (Credit): Service cost $ 32 $ 37 $ 26 $ — $ 1 $ 1 Interest cost 147 91 80 7 3 3 Expected return on plan assets (204) (226) (219) — — — Amortization of prior service credit — (1) (1) — — — Amortization of net (gain) loss 60 108 116 (15) (9) (4) Curtailment and settlement (gain) loss 1 149 — (7) — — — Net periodic benefit cost (credit) $ 184 $ 9 $ (5) $ (8) $ (5) $ — Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss: Net (gain) loss $ 109 $ (47) $ (144) $ 7 $ (49) $ (36) Amortization of prior service credit — 1 1 — — — Amortization of net gain (loss) (60) (108) (116) 15 9 4 Curtailment and settlement gain (loss) 1 (149) — 7 — — — Total recognized in other comprehensive (income) loss $ (100) $ (154) $ (252) $ 22 $ (40) $ (32) Total recognized in net periodic benefit cost and other comprehensive (income) loss $ 84 $ (145) $ (257) $ 14 $ (45) $ (32) 1. The 2023 impact relates to the settlement of certain pension benefit obligations through the purchase of a nonparticipating group annuity contract from an insurer. The 2021 impact relates to the freeze of pensionable compensation and credited service amounts for employees that participate in the UCC Plans. |
Schedule of Expected Benefit Payments | The estimated future benefit payments, reflecting expected future service, as appropriate, are presented in the following table: Estimated Future Benefit Payments at Dec 31, 2023 Defined Benefit Pension Plans Other Postretirement Benefit Plan In millions 2024 $ 238 $ 13 2025 213 13 2026 210 13 2027 207 12 2028 203 12 2029 through 2033 945 51 Total $ 2,016 $ 114 |
Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Assumptions Used | The weighted-average assumptions used to determine pension plan obligations and net periodic benefit cost are provided below: Pension Plan Assumptions Benefit Obligations Net Periodic Benefit Cost 2023 2022 2023 2022 2021 Discount rate 5.25 % 5.60 % 5.72 % 2.94 % 2.86 % Interest crediting rate for applicable benefits 4.50 % 4.50 % 4.50 % 4.50 % 4.50 % Rate of compensation increase 4.25 % 4.25 % 4.25 % 4.25 % 4.25 % Expected return on plan assets 6.80 % 6.80 % 6.80 % |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets at Dec 31 In millions 2023 2022 Accumulated benefit obligations $ 2,593 $ 2,859 Fair value of plan assets $ 2,320 $ 2,679 |
Schedule of Projected Benefit Obligations in Excess of Fair Value of Plan Assets | Pension Plans with Projected Benefit Obligations in Excess of Plan Assets at Dec 31 2023 2022 In millions Projected benefit obligations $ 2,593 $ 2,860 Fair value of plan assets $ 2,320 $ 2,679 |
Schedule of Allocation of Plan Assets | The weighted-average target allocation for plan assets of the Corporation's pension plan is summarized as follows: Target Allocation for Plan Assets at Dec 31, 2023 Target Allocation Asset Category Equity securities 23 % Fixed income securities 45 Alternative investments 27 Other 5 Total 100 % |
Schedule of Defined Benefit Plans Disclosures | The following table summarizes the bases used to measure the Corporation’s pension plan assets at fair value for the years ended December 31, 2023 and 2022: Basis of Fair Value Measurements Dec 31, 2023 Dec 31, 2022 In millions Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 203 $ 188 $ 15 $ — $ 224 $ 172 $ 52 $ — Equity securities: U.S. equity securities $ 239 $ 238 $ 1 $ — $ 288 $ 288 $ — $ — Non - U.S. equity securities 250 238 11 1 255 244 11 — Total equity securities $ 489 $ 476 $ 12 $ 1 $ 543 $ 532 $ 11 $ — Fixed income securities: Debt - government-issued $ 720 $ — $ 720 $ — $ 665 $ 1 $ 664 $ — Debt - corporate-issued 265 1 264 — 442 1 441 — Debt - asset-backed 37 — 37 — 20 — 20 — Total fixed income securities $ 1,022 $ 1 $ 1,021 $ — $ 1,127 $ 2 $ 1,125 $ — Alternative investments: Private markets $ — $ — $ — $ — $ 2 $ — $ — $ 2 Derivatives - asset position 7 — 7 — 5 — 5 — Derivatives - liability position (13) — (13) — (16) — (16) — Total alternative investments $ (6) $ — $ (6) $ — $ (9) $ — $ (11) $ 2 Other investments $ 1 $ 1 $ — $ — $ 3 $ 2 $ 1 $ — Subtotal $ 1,709 $ 666 $ 1,042 $ 1 $ 1,888 $ 708 $ 1,178 $ 2 Investments measured at net asset value: Hedge funds $ 125 $ 142 Private markets 344 411 Real estate 199 240 Total investments measured at net asset value $ 668 $ 793 Items to reconcile to fair value of plan assets: Pension trust receivables 1 $ 7 $ 4 Pension trust payables 2 (14) (6) Total $ 2,370 $ 2,679 1. Primarily receivables for investment securities sold. 2. Primarily payables for investment securities purchased. |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | The following table summarizes the changes in fair value of Level 3 pension plan assets for the years ended December 31, 2023 and 2022: Fair Value Measurement of Level 3 Pension Plan Assets Equity Securities Alternative Investments Total In millions Balance at Jan 1, 2022 $ 1 $ 2 $ 3 Actual return on plan assets: Relating to assets held at Dec 31, 2022 (1) (2) (3) Purchases, sales and settlements — 2 2 Balance at Dec 31, 2022 $ — $ 2 $ 2 Actual return on plan assets: Relating to assets held at Dec 31, 2023 1 (2) (1) Balance at Dec 31, 2023 $ 1 $ — $ 1 |
Other Postretirement Benefits Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Assumptions Used | The weighted-average assumptions used to determine other postretirement benefit plan obligations and net periodic benefit cost for the plan are provided in the following table: Other Postretirement Benefit Plan Assumptions Benefit Obligations at Dec 31 Net Periodic Benefit Cost for the Year Ended 2023 2022 2023 2022 2021 Discount rate 5.20 % 5.56 % 5.56 % 2.84 % 2.34 % Health care cost trend rate assumed for next year 6.50 % 6.57 % 6.57 % 6.50 % 6.75 % Rate to which the cost trend rate is assumed to decline (the ultimate health care cost trend rate) 5.00 % 5.00 % 5.00 % 5.00 % 5.00 % Year that the rate reaches the ultimate health care cost trend rate 2033 2033 2033 2028 2028 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease cost for operating and finance leases for the years ended December 31, 2023, 2022 and 2021 were as follows: Lease Cost 2023 2022 2021 In millions Operating lease cost $ 25 $ 25 $ 23 Short-term lease cost 41 31 28 Variable lease cost 25 19 39 Amortization of right-of-use assets - finance 3 3 3 Total lease cost $ 94 $ 78 $ 93 |
Schedule of Supplemental Cash Flow Information Related to Leases [Table Text Block] | The following table provides supplemental cash flow and other information related to leases: Other Lease Information 2023 2022 2021 In millions Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 24 $ 25 $ 23 Financing cash flows for finance leases $ 3 $ 3 $ 3 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 12 $ 2 $ 15 Finance leases $ 2 $ 1 $ 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 December 31, 2023 and 2022: Lease Position Balance Sheet Classification Dec 31, 2023 Dec 31, 2022 In millions Assets Operating lease assets Operating lease right-of-use assets $ 85 $ 107 Finance lease assets Property 14 20 Finance lease amortization Accumulated depreciation (12) (13) Total lease assets $ 87 $ 114 Liabilities Current Operating Operating lease liabilities - current $ 17 $ 21 Finance Long-term debt due within one year 1 3 Noncurrent Operating Operating lease liabilities - noncurrent 68 87 Finance Long-Term Debt 2 4 Total lease liabilities $ 88 $ 115 |
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 December 31, 2023 and 2022 are provided below: Lease Term and Discount Rate Dec 31, 2023 Dec 31, 2022 Weighted-average remaining lease term Operating leases 6.7 years 6.3 years Finance leases 3.8 years 2.5 years Weighted-average discount rate Operating leases 3.42 % 3.43 % Finance leases 4.38 % 2.33 % |
Maturities of Lease Liabilities [Table Text Block] | The following table provides the maturities of lease liabilities at December 31, 2023: Maturities of Lease Liabilities Dec 31, 2023 In millions Operating Leases Finance Leases 2024 $ 19 $ 1 2025 18 1 2026 17 1 2027 11 — 2028 10 — 2029 and thereafter 20 — Total future undiscounted lease payments $ 95 $ 3 Less: Imputed interest 10 — Total present value of lease liabilities $ 85 $ 3 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes the fair value of the Corporation's financial instruments at December 31, 2023 and 2022: Fair Value of Financial Instruments 2023 2022 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 $ (260) $ — $ (47) $ (307) $ (394) $ — $ (29) $ (423) 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 TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 years ended December 31, 2023, 2022 and 2021: Product and Services Agreements Transactions 2023 2022 2021 Income Statement In millions Classification Commodity and raw materials purchases 1 $ 1,078 $ 1,909 $ 1,915 Cost of sales Commission expense $ 19 $ 19 $ 21 Sundry income (expense) - net General administrative and overhead type services and service fee 2 $ 72 $ 65 $ 63 Sundry income (expense) - net Activity-based costs 2 $ 158 $ 89 $ 74 Cost of sales 1. Period-end balances on hand are included in inventory. The 2023 decrease in purchase costs was primarily due to lower feedstock and energy costs on lower production. 2. The 2023 increase was due to changes in cost flows and the cost of site infrastructure services resulting from UCC's divestment of certain non-product producing infrastructure assets to another TDCC subsidiary in the fourth quarter of 2023. |
Dividends Declared | The following table summarizes cash dividends declared and paid to TDCC for the years ended 2023, 2022 and 2021: Cash Dividends Declared and Paid 2023 2022 2021 In millions Cash dividends declared and paid $ 512 $ 1,063 $ 288 |
BUSINESS AND GEOGRAPHIC AREAS_2
BUSINESS AND GEOGRAPHIC AREAS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Sales are attributed to geographic regions based on customer location; long-lived assets are attributed to geographic regions based on asset location. Sales to external customers and long-lived assets by geographic region were as follows: Geographic Region Information United States Asia Pacific Rest of World Total In millions 2023 Sales to external customers 1 $ 117 $ 30 $ — $ 147 Long-lived assets $ 862 $ 21 $ 11 $ 894 2022 Sales to external customers 1 $ 182 $ 3 $ 6 $ 191 Long-lived assets $ 1,149 $ 22 $ 11 $ 1,182 2021 Sales to external customers 1 $ 139 $ 4 $ 11 $ 154 Long-lived assets $ 1,169 $ 24 $ 15 $ 1,208 1. Of total sales to external customers, sales in Malaysia were approximately 20 percent in 2023, 1 percent in 2022 and 2 percent in 2021, and are included in Asia Pacific. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Dec. 31, 2023 |
Minimum [Member] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Maximum [Member] | |
Finite-Lived Intangible Asset, Useful Life | 20 years |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disaggregation of Revenue [Line Items] | ||
Contract liability | $ 31 | $ 33 |
Accrued Liabilities [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract with Customer, Liability, Current | 2 | 2 |
Other Noncurrent Liabilities [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract with Customer, Liability, Noncurrent | $ 29 | $ 31 |
Maximum [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 17 years |
RESTRUCTURING AND ASSET RELAT_2
RESTRUCTURING AND ASSET RELATED CHARGES - NET (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 14 | $ 14 | $ 0 | $ 1 |
Accrued and Other Current Liabilities [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve | 2 | |||
Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 12 | |||
Payments for Restructuring | 10 | |||
Asset write-downs and write-offs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 2 | $ 2 |
SUPPLEMENTARY INFORMATION (Sund
SUPPLEMENTARY INFORMATION (Sundry) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Supplementary Information [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ (144) | $ 34 | $ 32 |
Gain on Sale of Investments | 206 | 0 | 0 |
Gain (Loss) on Disposition of Property Plant Equipment | 1 | 3 | 6 |
Gain (Loss) on Extinguishment of Debt | 10 | 0 | 0 |
Other - net | (7) | (6) | (7) |
Total sundry income (expense) - net | $ (25) | (53) | (53) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Settlement and Curtailment Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Total sundry income (expense) - net | ||
Administrative and overhead fees [Member] | |||
Supplementary Information [Line Items] | |||
Costs and Expenses, Related Party | $ (72) | (65) | (63) |
Net Commission Expense [Member] | |||
Supplementary Information [Line Items] | |||
Costs and Expenses, Related Party | $ (19) | $ (19) | $ (21) |
SUPPLEMENTARY INFORMATION (Supp
SUPPLEMENTARY INFORMATION (Supplier Finance Program) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Supplementary Information [Line Items] | ||
Supplier Finance Program, Obligation, Addition | $ 102 | |
Supplier Finance Program, Obligation, Settlement | $ (104) | |
Supplier Finance Program, Obligation, Current, Statement of Financial Position [Extensible Enumeration] | Trade | Trade |
Accounts Payable | ||
Supplementary Information [Line Items] | ||
Supplier Finance Program, Obligation, Current | $ 27 | $ 29 |
Minimum [Member] | ||
Supplementary Information [Line Items] | ||
Supplier Finance Program, Payment Timing, Period | 90 days | |
Maximum [Member] | ||
Supplementary Information [Line Items] | ||
Supplier Finance Program, Payment Timing, Period | 120 days |
SUPPLEMENTARY INFORMATION SUPPL
SUPPLEMENTARY INFORMATION SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest, net of amounts capitalized | $ 26 | $ 31 | $ 31 |
Income taxes | $ 102 | $ 63 | $ (62) |
INCOME TAXES (Schedule of Domes
INCOME TAXES (Schedule of Domestic and Foreign Components of Income Before Income Taxes and Tax Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Geographic Allocation of Income and Provision (Credit) for Income Taxes [Abstract] | |||
Income (Loss) Before Income Taxes, Domestic | $ 455 | $ 767 | $ 531 |
Income (Loss) Before Income Taxes, Foreign | (1) | (1) | (2) |
Income before income taxes | 454 | 766 | 529 |
Current Federal Tax Expense (Benefit) | 96 | 157 | (11) |
Current State and Local Tax Expense (Benefit) | (6) | 9 | 5 |
Current Foreign Tax Expense (Benefit) | 1 | 1 | 20 |
Current Income Tax Expense (Benefit) | 91 | 167 | 14 |
Deferred Federal Income Tax Expense (Benefit) | (19) | (2) | 122 |
Deferred State and Local Income Tax Expense (Benefit) | 1 | 3 | 23 |
Deferred Foreign Income Tax Expense (Benefit) | 0 | 4 | (5) |
Deferred Income Tax Expense (Benefit) | (18) | 5 | 140 |
Provision for income taxes | 73 | 172 | 154 |
Net Income Attributable to Union Carbide Corporation | $ 381 | $ 594 | $ 375 |
INCOME TAXES (Reconciliation to
INCOME TAXES (Reconciliation to U.S. Statutory Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate | 21% | 21% | 21% |
Unrecognized tax benefits and related interest | (2.70%) | (0.70%) | 3% |
State and local tax impact | (1.20%) | 1.70% | 5.30% |
Other - net | (1.00%) | 0.50% | (0.20%) |
Effective Tax Rate | 16.10% | 22.50% | 29.10% |
INCOME TAXES (Schedule of Defer
INCOME TAXES (Schedule of Deferred Tax Balances) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Property, Plant and Equipment | $ 0 | $ 0 |
Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards | 11 | 26 |
Postretirement benefit obligations, Deferred Tax Assets | 92 | 72 |
Other accruals and reserves, Deferred Tax Assets | 270 | 293 |
Inventory, Deferred Tax Assets | 2 | 2 |
Other - net, deferred tax assets | 16 | 18 |
Subtotal, deferred tax assets | (391) | (411) |
Valuation allowances, deferred tax assets | (11) | (15) |
Total, deferred tax assets | 380 | 396 |
Property, Deferred Tax Liabilities | 123 | 154 |
Tax loss and credit carryforwards, Deferred Tax Liabilities, | 0 | 0 |
Postretirement benefit obligations, Deferred Tax Liabilities | 0 | 0 |
Other accruals and reserves, Deferred Tax Liabilities | 0 | 3 |
Inventory, deferred tax liabilities | 0 | 0 |
Other - net, deferred tax liabilities | 0 | 0 |
Total, deferred tax liabilities | $ 123 | $ 157 |
INCOME TAXES (Summary of Operat
INCOME TAXES (Summary of Operating Loss Carryforwards) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Tax Assets, Operating Loss Carryforwards | $ 8 | $ 20 |
Deferred Tax Assets, Tax Credit Carryforwards | 3 | 6 |
Operating Loss Carryforward and Tax Credit Carryforwards | 11 | 26 |
Undistributed Earnings of Foreign Subsidiaries | 0 | 0 |
Taxes Payable | 301 | |
Expiring Within Five Years [Member] | ||
Deferred Tax Assets, Operating Loss Carryforwards | 5 | 8 |
Deferred Tax Assets, Tax Credit Carryforwards | 2 | 5 |
Expiring After Five Years or Having Indefinite Expiration [Member] [Member] | ||
Deferred Tax Assets, Operating Loss Carryforwards | 3 | 12 |
Deferred Tax Assets, Tax Credit Carryforwards | $ 1 | $ 1 |
INCOME TAXES (Uncertain Tax Pos
INCOME TAXES (Uncertain Tax Position) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Total Gross Unrecognized Tax Benefits [Roll Forward] | |||
Gross unrecognized tax benefits, beginning balance | $ 8 | $ 8 | $ 1 |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | 0 | 0 | (1) |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 0 | 0 | 8 |
Gross unrecognized tax benefits, ending balance | 8 | 8 | 8 |
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate | 8 | 8 | 8 |
Total amount of interest and penalties (benefit) recognized in "Provision for income taxes" | (12) | (10) | (11) |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 11 | $ 10 | $ 12 |
INCOME TAXES (Tax Years Subject
INCOME TAXES (Tax Years Subject to Examination by Major Tax Jurisdiction) (Details) | 12 Months Ended |
Dec. 31, 2023 | |
State and Local Income Tax [Member] | |
Earliest open year | 2004 |
Federal Income Tax [Member] | |
Earliest open year | 2007 |
INVENTORIES (Schedule of Invent
INVENTORIES (Schedule of Inventories) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 189 | $ 218 |
Work in process | 30 | 37 |
Raw materials | 60 | 76 |
Supplies | 87 | 87 |
Total | 366 | 418 |
Adjustment of inventories to a LIFO basis | (139) | (162) |
Total inventories | $ 227 | $ 256 |
Percentage of LIFO Inventory | 60% | 65% |
PROPERTY (Schedule of Property)
PROPERTY (Schedule of Property) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property | $ 5,406 | $ 7,104 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property | $ 68 | 186 |
Land and Land Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | 0 years | |
Land and Land Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | 25 years | |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property | $ 259 | 403 |
Buildings [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | 5 years | |
Buildings [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | 50 years | |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property | $ 4,799 | 5,993 |
Machinery and equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | 3 years | |
Machinery and equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | 20 years | |
Other property [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property | $ 111 | 383 |
Other property [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | 3 years | |
Other property [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | 30 years | |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property | $ 169 | $ 139 |
PROPERTY (Schedule of Other Ite
PROPERTY (Schedule of Other Items Related to Property) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 146 | $ 165 | $ 167 |
Capitalized interest | $ 8 | $ 5 | $ 5 |
INVESTMENTS IN RELATED COMPAN_3
INVESTMENTS IN RELATED COMPANIES (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Investments [Line Items] | ||
Investments in related companies | $ 237 | $ 237 |
Dow International Holdings Company [Member] | ||
Schedule of Investments [Line Items] | ||
Ownership Interest Percentage, Related Company | 5% | 5% |
Equity Securities without Readily Determinable Fair Value, Amount | $ 232 | $ 232 |
Dow Quimica Mexicana S.A. de C.V. [Member] | ||
Schedule of Investments [Line Items] | ||
Ownership Interest Percentage, Related Company | 14% | 14% |
Equity Securities without Readily Determinable Fair Value, Amount | $ 5 | $ 5 |
INTANGIBLE ASSETS (Schedule of
INTANGIBLE ASSETS (Schedule of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 100 | $ 109 |
Finite-Lived Intangible Assets, Accumulated Amortization | (93) | (100) |
Finite-Lived Intangible Assets, Net | 7 | 9 |
Increase (Decrease) in Intangible Assets, Current | 10 | |
Licenses and Developed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
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 [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 67 | 76 |
Finite-Lived Intangible Assets, Accumulated Amortization | (60) | (67) |
Finite-Lived Intangible Assets, Net | $ 7 | $ 9 |
INTANGIBLE ASSETS (Schedule o_2
INTANGIBLE ASSETS (Schedule of Amortization Expense of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Software | $ 3 | $ 5 | $ 6 |
INTANGIBLE ASSETS (Schedule o_3
INTANGIBLE ASSETS (Schedule of Future Amortization Expense of Intangible Assets) (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 2 |
2021 | 2 |
2022 | 1 |
2023 | 1 |
2024 | $ 1 |
NOTES PAYABLE AND LONG-TERM D_3
NOTES PAYABLE AND LONG-TERM DEBT (Schedule of Notes Payable) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Year-end average interest rates | 1.06% | 1.02% |
Notes Payable to Bank | $ 1 | $ 4 |
Notes Payable | 69 | 55 |
Notes payable to related companies | $ 68 | $ 51 |
NOTES PAYABLE AND LONG-TERM D_4
NOTES PAYABLE AND LONG-TERM DEBT (Schedule of Long-Term Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Long-term Debt and Lease Obligation | $ 259 | $ 262 |
Unamortized debt discount and issuance costs | (3) | (2) |
Long-term debt due within one year | (1) | $ (132) |
Repayments of Long-term Debt | 129 | |
Letters of Credit Outstanding, Amount | $ 6 | |
Final Maturity 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Average Interest Rate in Period | 0% | 7.875% |
Long-term Debt and Lease Obligation | $ 0 | $ 129 |
Final Maturity 2025 (a) [Member] | ||
Debt Instrument [Line Items] | ||
Average Interest Rate in Period | 6.79% | 6.79% |
Long-term Debt and Lease Obligation | $ 12 | $ 12 |
Final Maturity 2025 (b) [Member] | ||
Debt Instrument [Line Items] | ||
Average Interest Rate in Period | 7.50% | 7.50% |
Long-term Debt and Lease Obligation | $ 113 | $ 113 |
Final Maturity 2096 [Member] | ||
Debt Instrument [Line Items] | ||
Average Interest Rate in Period | 7.75% | 7.75% |
Long-term Debt and Lease Obligation | $ 135 | $ 135 |
Finance Lease Obligations | ||
Debt Instrument [Line Items] | ||
Long-term Debt and Lease Obligation | $ 3 | $ 7 |
NOTES PAYABLE AND LONG-TERM D_5
NOTES PAYABLE AND LONG-TERM DEBT (Schedule of Annual Installments) (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Long-Term Debt, Fiscal Year Maturity [Abstract] | |
2020 | $ 1 |
2021 | 126 |
2022 | 1 |
2023 | 0 |
2024 | $ 0 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Environmental Matters) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Balance at Jan 1 | $ 183 | $ 148 | |
Accrual adjustment | 49 | 78 | |
Accrual for Environmental Loss Contingencies, Payments | (37) | (42) | |
Foreign currency impact | (1) | (1) | |
Balance at Dec 31 | 194 | 183 | $ 148 |
Environmental remediation expense | 72 | ||
Capital expenditures for environmental protection | $ 47 | $ 38 | $ 8 |
Environmental Remediation Expense, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of sales | Cost of sales | Cost of sales |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Other noncurrent obligations | Other noncurrent obligations | |
Accrual For Environmental Loss Contingencies Superfund Sites [Member] | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Balance at Jan 1 | $ 36 | ||
Balance at Dec 31 | $ 37 | $ 36 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES (Asbestos Related Matters) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Loss Contingencies [Line Items] | ||
Liability for Asbestos Claims and Defense Costs Gross | $ 867 | $ 947 |
Percentage of Recorded Asbests Liability Related to Pending Claims | 25% | 23% |
Percentage of Recorded Asbestos Liability Related to Future Claims | 75% | 77% |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | $ (1,402) | $ (1,551) | |
Net other comprehensive income | 59 | 149 | $ 219 |
Ending balance | (1,343) | (1,402) | (1,551) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (54) | (53) | (55) |
Other comprehensive income (loss) before reclassifications | 1 | 0 | 2 |
Net other comprehensive income | 1 | (1) | 2 |
Ending balance | (53) | (54) | (53) |
Pension and Other Postretirement Benefits | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (1,348) | (1,498) | (1,715) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (116) | 96 | 180 |
Other Comprehensive Income (Loss) before Reclassifications, Tax | 25 | (22) | (43) |
Other comprehensive income (loss) before reclassifications | (91) | 74 | 137 |
Amounts reclassified from AOCL | 149 | 76 | 80 |
Reclassification from AOCI, Current Period, Tax | (45) | (22) | (24) |
Net other comprehensive income | 58 | 150 | 217 |
Ending balance | (1,290) | (1,348) | (1,498) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Amounts reclassified from AOCL | 0 | (1) | 0 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension and Other Postretirement Benefits | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | $ 194 | $ 98 | $ 104 |
PENSION PLANS AND OTHER POSTR_3
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Pension Plans) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | $ 149 | ||||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 230 | ||||
Defined Benefit Plan, Plan Assets, Payment for Settlement | 210 | ||||
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Settlement and Curtailment Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Total sundry income (expense) - net | ||||
Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | $ 87 | $ (55) | $ 826 | ||
Increase (Decrease) in Obligation, Pension Benefits | 14 | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | $ 7 | (149) | 0 | $ 7 | |
Defined Benefit Plan, Plan Assets, Payment for Settlement | 211 | 0 | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 2 | $ 3 | |||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 2 | $ 2 | |||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 5.25% | 5.25% | 5.60% | 2.94% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 5.72% | 2.94% | 2.86% | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Weighted-Average Interest Crediting Rate | 4.50% | 4.50% | 4.50% | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Weighted-Average Interest Crediting Rate | 4.50% | 4.50% | 4.50% | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 4.25% | 4.25% | 4.25% | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 4.25% | 4.25% | 4.25% | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 6.80% | 6.80% | 6.80% |
PENSION PLANS AND OTHER POSTR_4
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Other Postretirement Benefits) (Details) - Other Postretirement Benefits Plan [Member] | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 5.20% | 5.56% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 5.56% | 2.84% | 2.34% |
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Next Fiscal Year | 6.50% | 6.57% | |
Defined Benefit Plan, Health Care Cost Trend Rate Assumed to Calculate Net Periodic Benefit Cost, Next Fiscal Year | 6.57% | 6.50% | 6.75% |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 5% | 5% | |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate To Calculate Net Period Benefit Cost | 5% | 5% | 5% |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate To Calculate PBO, End of Year | 2033 | 2033 | |
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate | 2033 | 2028 | 2028 |
PENSION PLANS AND OTHER POSTR_5
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Change in Projected Benefit Obligation, Plan Assets and Funded Status) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Defined Benefit Plan, Plan Assets, Amount, Beginning Balance | $ 2,700 | ||||
Defined Benefit Plan, Plan Assets, Payment for Settlement | $ (210) | ||||
Fair value of plan assets at end of year | 2,400 | 2,400 | $ 2,700 | ||
Pension Plan [Member] | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Defined Benefit Plan, Benefit Obligation, Beginning Balance | 2,860 | 3,940 | |||
Defined Benefit Plan, Service Cost | 32 | 37 | $ 26 | ||
Defined Benefit Plan, Interest Cost | 147 | 91 | 80 | ||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | $ (87) | 55 | (826) | ||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | (246) | (265) | |||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Other Change | (4) | (117) | |||
Defined Benefit Plan, Benefit Obligation, Ending Balance | 2,633 | 2,633 | 2,860 | 3,940 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Defined Benefit Plan, Plan Assets, Amount, Beginning Balance | 2,679 | 3,611 | |||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 146 | (556) | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 2 | 3 | |||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Assets Transferred to (from) Plan | (5) | (8) | |||
Defined Benefit Plan, Plan Assets, Benefits Paid | (246) | (265) | |||
Defined Benefit Plan, Plan Assets, Payment for Settlement | (211) | 0 | |||
Defined Benefit Plan, Plan Assets, Period Increase (Decrease) | (5) | 106 | |||
Fair value of plan assets at end of year | 2,370 | 2,370 | 2,679 | 3,611 | |
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (263) | (263) | (181) | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||||
Liability, Defined Benefit Plan, Current | (2) | (2) | (2) | ||
Liability, Defined Benefit Plan, Noncurrent | (271) | (271) | (179) | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | (263) | (263) | (181) | ||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | 1,752 | 1,752 | 1,852 | ||
Assets for Plan Benefits, Defined Benefit Plan | 10 | 10 | 0 | ||
Other Postretirement Benefits Plan [Member] | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Defined Benefit Plan, Benefit Obligation, Beginning Balance | 128 | 174 | |||
Defined Benefit Plan, Service Cost | 0 | 1 | 1 | ||
Defined Benefit Plan, Interest Cost | 7 | 3 | 3 | ||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 6 | (48) | |||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | (8) | (2) | |||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Other Change | 0 | 0 | |||
Defined Benefit Plan, Benefit Obligation, Ending Balance | 133 | 133 | 128 | 174 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Defined Benefit Plan, Plan Assets, Amount, Beginning Balance | 0 | 0 | |||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 0 | 0 | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 0 | 0 | |||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Assets Transferred to (from) Plan | 0 | 0 | |||
Defined Benefit Plan, Plan Assets, Benefits Paid | 0 | 0 | |||
Defined Benefit Plan, Plan Assets, Payment for Settlement | 0 | 0 | |||
Defined Benefit Plan, Plan Assets, Period Increase (Decrease) | 0 | 0 | |||
Fair value of plan assets at end of year | 0 | 0 | 0 | $ 0 | |
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (133) | (133) | (128) | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||||
Liability, Defined Benefit Plan, Current | (12) | (12) | (12) | ||
Liability, Defined Benefit Plan, Noncurrent | (121) | (121) | (116) | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | (133) | (133) | (128) | ||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | (102) | (102) | (124) | ||
Assets for Plan Benefits, Defined Benefit Plan | $ 0 | $ 0 | $ 0 |
PENSION PLANS AND OTHER POSTR_6
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Accumulated and Projected Benefit Obligations in Excess of Plan Assets) (Details) - Pension Plan [Member] - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 2,600 | $ 2,900 |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Accumulated Benefit Obligation | 2,593 | 2,859 |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Plan Assets | 2,320 | 2,679 |
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | 2,593 | 2,860 |
Defied Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Fair Value of Plan Assets | $ 2,320 | $ 2,679 |
PENSION PLANS AND OTHER POSTR_7
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | $ (149) | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 144 | $ (34) | $ (32) | ||
Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Service Cost | 32 | 37 | 26 | ||
Defined Benefit Plan, Interest Cost | 147 | 91 | 80 | ||
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (204) | (226) | (219) | ||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | (1) | (1) | ||
Defined Benefit Plan, Amortization of Gain (Loss) | 60 | 108 | 116 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | $ (7) | 149 | 0 | (7) | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 184 | 9 | (5) | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | 109 | (47) | (144) | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | 0 | 1 | 1 | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | (60) | (108) | (116) | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), before Tax | (149) | 0 | 7 | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax, Total | (100) | (154) | (252) | ||
Total recognized in net periodic benefit cost and other comprehensive loss or income | 84 | (145) | (257) | ||
Other Postretirement Benefits Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Service Cost | 0 | 1 | 1 | ||
Defined Benefit Plan, Interest Cost | 7 | 3 | 3 | ||
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 0 | 0 | 0 | ||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 0 | 0 | ||
Defined Benefit Plan, Amortization of Gain (Loss) | (15) | (9) | (4) | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | 0 | 0 | 0 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | (8) | (5) | 0 | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | 7 | (49) | (36) | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | 0 | 0 | 0 | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | 15 | 9 | 4 | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), before Tax | 0 | 0 | 0 | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax, Total | 22 | (40) | (32) | ||
Total recognized in net periodic benefit cost and other comprehensive loss or income | $ 14 | $ (45) | $ (32) |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFITS (Estimated Future Benefit Payments) (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | $ 238 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 213 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 210 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 207 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 203 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 945 |
Total estimated future benefit payments | 2,016 |
Other Postretirement Benefits Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 13 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 13 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 13 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 12 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 12 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 51 |
Total estimated future benefit payments | $ 114 |
PENSION PLANS AND OTHER POSTR_8
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Target Allocation for Plan Investment Strategy and Risk Management for Plan Assets) (Details) - Pension Plan [Member] | Dec. 31, 2023 |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100% |
Equity Securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 23% |
Fixed Income Securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 45% |
Alternative Investments [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 27% |
Other [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 5% |
PENSION PLANS AND OTHER POSTR_9
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Basis of Fair Value Measurements) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 2,400 | $ 2,700 | |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 2,370 | 2,679 | $ 3,611 |
Defined Benefit Plan, Fair Value of Plan Assets Subtotal | 1,709 | 1,888 | |
Pension Plan [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets Subtotal | 666 | 708 | |
Pension Plan [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets Subtotal | 1,042 | 1,178 | |
Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 1 | 2 | 3 |
Defined Benefit Plan, Fair Value of Plan Assets Subtotal | 1 | 2 | |
Cash and Cash Equivalents [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 203 | 224 | |
Cash and Cash Equivalents [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 188 | 172 | |
Cash and Cash Equivalents [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 15 | 52 | |
Cash and Cash Equivalents [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
U.S. Equity [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 239 | 288 | |
U.S. Equity [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 238 | 288 | |
U.S. Equity [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 1 | 0 | |
U.S. Equity [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 0 | 0 | |
Non-U.S. Equity - Developed Countries [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 250 | 255 | |
Non-U.S. Equity - Developed Countries [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 238 | 244 | |
Non-U.S. Equity - Developed Countries [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 11 | 11 | |
Non-U.S. Equity - Developed Countries [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 1 | 0 | |
Equity Securities [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 489 | 543 | |
Equity Securities [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 476 | 532 | |
Equity Securities [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 12 | 11 | |
Equity Securities [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 1 | 0 | 1 |
US Treasury and Government [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 720 | 665 | |
US Treasury and Government [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 0 | 1 | |
US Treasury and Government [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 720 | 664 | |
US Treasury and Government [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 0 | 0 | |
Corporate Debt Securities [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 265 | 442 | |
Corporate Debt Securities [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 1 | 1 | |
Corporate Debt Securities [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 264 | 441 | |
Corporate Debt Securities [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 0 | 0 | |
Asset-backed Securities [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 37 | 20 | |
Asset-backed Securities [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 0 | 0 | |
Asset-backed Securities [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 37 | 20 | |
Asset-backed Securities [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 0 | 0 | |
Fixed Income Securities [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 1,022 | 1,127 | |
Fixed Income Securities [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 1 | 2 | |
Fixed Income Securities [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 1,021 | 1,125 | |
Fixed Income Securities [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Private Equity Funds [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 0 | 2 | |
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 344 | 411 | |
Private Equity Funds [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 0 | 0 | |
Private Equity Funds [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 0 | 0 | |
Private Equity Funds [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 0 | 2 | |
Derivative Financial Instruments, Assets [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 7 | 5 | |
Derivative Financial Instruments, Assets [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 0 | 0 | |
Derivative Financial Instruments, Assets [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 7 | 5 | |
Derivative Financial Instruments, Assets [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 0 | 0 | |
Derivative Financial Instruments, Liabilities [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 13 | 16 | |
Derivative Financial Instruments, Liabilities [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 0 | 0 | |
Derivative Financial Instruments, Liabilities [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 13 | 16 | |
Derivative Financial Instruments, Liabilities [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount | 0 | 0 | |
Alternative Investments [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | (6) | (9) | |
Alternative Investments [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Alternative Investments [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | (6) | (11) | |
Alternative Investments [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 2 | $ 2 |
Other [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 1 | 3 | |
Other [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 1 | 2 | |
Other [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 1 | |
Other [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Hedge Funds [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 125 | 142 | |
Real Estate [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 199 | 240 | |
Plan Assets, Retirement Plan, Total investments measured at NAV | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 668 | 793 | |
Pension Trust Payables [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | (14) | (6) | |
Pension Trust Receivables | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 7 | $ 4 |
PENSION PLANS AND OTHER POST_10
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Fair Value Measurement of Level 3 Pension Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 2,400 | $ 2,700 | |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 2,370 | 2,679 | $ 3,611 |
Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 1 | 2 | 3 |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Actual Return (Loss) on Plan Assets Still Held | (1) | (3) | |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchase, Sale, and Settlement | 2 | ||
Pension Plan [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 1,022 | 1,127 | |
Pension Plan [Member] | Fixed Income Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Pension Plan [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 489 | 543 | |
Pension Plan [Member] | Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 1 | 0 | 1 |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Actual Return (Loss) on Plan Assets Still Held | 1 | (1) | |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchase, Sale, and Settlement | 0 | ||
Pension Plan [Member] | Alternative Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | (6) | (9) | |
Pension Plan [Member] | Alternative Investments [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 2 | $ 2 |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Actual Return (Loss) on Plan Assets Still Held | $ (2) | (2) | |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchase, Sale, and Settlement | $ 2 |
PENSION PLANS AND OTHER POST_11
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Defined Contribution Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Cost | $ 12 | $ 12 | $ 8 |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 5% | ||
Automatic Non-Elective Contribution | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4% |
LEASES (Details)
LEASES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Short-term lease cost | $ 41 | $ 31 | $ 28 |
Variable lease cost | 25 | 19 | 39 |
Amortization of right-of-use assets - finance | 3 | 3 | 3 |
Total lease cost | 94 | 78 | 93 |
Operating cash flows for operating leases | 24 | 25 | 23 |
Financing cash flows for finance leases | 3 | 3 | 3 |
Right-of-use assets obtained in exchange for lease obligations: | 12 | 2 | 15 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 2 | 1 | 5 |
Operating lease assets | 85 | 107 | |
Total lease assets | 87 | 114 | |
Operating lease liabilities - current | 17 | 21 | |
Operating lease liabilities - noncurrent | 68 | 87 | |
Total lease liabilities | $ 88 | $ 115 | |
Operating Lease, Weighted Average Remaining Lease Term | 6 years 8 months 12 days | 6 years 3 months 18 days | |
Finance Lease, Weighted Average Remaining Lease Term | 3 years 9 months 18 days | 2 years 6 months | |
Operating Lease, Weighted Average Discount Rate, Percent | 3.42% | 3.43% | |
Finance Lease, Weighted Average Discount Rate, Percent | 4.38% | 2.33% | |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 19 | ||
Finance Lease, Liability, Payments, Due Next Twelve Months | 1 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 18 | ||
Finance Lease, Liability, Payments, Due Year Two | 1 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 17 | ||
Finance Lease, Liability, Payments, Due Year Three | 1 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 11 | ||
Finance Lease, Liability, Payments, Due Year Four | 0 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 10 | ||
Finance Lease, Liability, Payments, Due Year Five | 0 | ||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 20 | ||
Finance Lease, Liability, Payments, Due after Year Five | 0 | ||
Lessee, Operating Lease, Liability, Payments, Due | 95 | ||
Finance Lease, Liability, Payment, Due | 3 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 10 | ||
Finance Lease, Liability, Undiscounted Excess Amount | 0 | ||
Operating lease, liability | 85 | ||
Finance Lease, Liability | 3 | ||
Lessee, Additional Leases Not yet Commenced, Assumptions and Judgment, Amount | 0 | ||
Operating Lease, Cost | $ 25 | $ 25 | $ 23 |
Lessee, Operating And Finance Leases | LEASES Operating lease ROU assets are included in "Operating lease right-of-use assets" and finance lease ROU assets are included in "Net property" in the consolidated balance sheets. With respect to lease liabilities, operating lease liabilities are included in "Operating lease liabilities - current" and "Operating lease liabilities - noncurrent," and finance lease liabilities are included in "Long-term debt due within one year" and "Long-Term Debt" in the consolidated balance sheets. The Corporation routinely leases product and utility production facilities, sales and administrative offices, warehouses and tanks for product storage, motor vehicles, railcars, office machines and equipment. Some leases contain renewal provisions, purchase options and escalation clauses. The terms for these leased assets vary depending on the lease agreement. These leased assets have remaining lease terms of up to 21 years. The Corporation's lease agreements do not contain any material residual value guarantees or restrictive covenants. The components of lease cost for operating and finance leases for the years ended December 31, 2023, 2022 and 2021 were as follows: Lease Cost 2023 2022 2021 In millions Operating lease cost $ 25 $ 25 $ 23 Short-term lease cost 41 31 28 Variable lease cost 25 19 39 Amortization of right-of-use assets - finance 3 3 3 Total lease cost $ 94 $ 78 $ 93 The following table provides supplemental cash flow and other information related to leases: Other Lease Information 2023 2022 2021 In millions Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 24 $ 25 $ 23 Financing cash flows for finance leases $ 3 $ 3 $ 3 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 12 $ 2 $ 15 Finance leases $ 2 $ 1 $ 5 The following table summarizes the lease-related assets and liabilities recorded in the consolidated balance sheets at December 31, 2023 and 2022: Lease Position Balance Sheet Classification Dec 31, 2023 Dec 31, 2022 In millions Assets Operating lease assets Operating lease right-of-use assets $ 85 $ 107 Finance lease assets Property 14 20 Finance lease amortization Accumulated depreciation (12) (13) Total lease assets $ 87 $ 114 Liabilities Current Operating Operating lease liabilities - current $ 17 $ 21 Finance Long-term debt due within one year 1 3 Noncurrent Operating Operating lease liabilities - noncurrent 68 87 Finance Long-Term Debt 2 4 Total lease liabilities $ 88 $ 115 The weighted-average remaining lease term and discount rate for leases recorded in the consolidated balance sheets at December 31, 2023 and 2022 are provided below: Lease Term and Discount Rate Dec 31, 2023 Dec 31, 2022 Weighted-average remaining lease term Operating leases 6.7 years 6.3 years Finance leases 3.8 years 2.5 years Weighted-average discount rate Operating leases 3.42 % 3.43 % Finance leases 4.38 % 2.33 % The following table provides the maturities of lease liabilities at December 31, 2023: Maturities of Lease Liabilities Dec 31, 2023 In millions Operating Leases Finance Leases 2024 $ 19 $ 1 2025 18 1 2026 17 1 2027 11 — 2028 10 — 2029 and thereafter 20 — Total future undiscounted lease payments $ 95 $ 3 Less: Imputed interest 10 — Total present value of lease liabilities $ 85 $ 3 At December 31, 2023, the Corporation had no additional leases for assets that have not yet commenced. | ||
Property, Plant and Equipment | |||
Finance Lease, Right-of-Use Asset, before Accumulated Amortization | $ 14 | 20 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | |||
Finance Lease, Right-of-Use Asset, Accumulated Amortization | 12 | 13 | |
Long-Term Debt Due Within One Year | |||
Finance Lease, Liability | 1 | 3 | |
Long-term Debt and Lease Obligation | |||
Finance Lease, Liability | $ 2 | $ 4 | |
Maximum [Member] | |||
Lessee, Operating and Finance Leases, Remaining Lease Term | 21 years |
FAIR VALUE MEASUREMENTS (Basis
FAIR VALUE MEASUREMENTS (Basis of Fair Value Measurements on a Recurring Basis) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term Debt | $ (260) | $ (394) | ||
Cash and Cash Equivalents, Fair Value Disclosure | 10 | 10 | ||
Long-term Debt, Fair Value | (307) | (423) | ||
Restructuring Charges | $ 14 | 14 | 0 | $ 1 |
Asset write-downs and write-offs [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restructuring Charges | $ 2 | 2 | ||
Money Market Funds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash Equivalents, at Carrying Value | 10 | 10 | ||
Financial Instruments Gross Unrealized Gains | 0 | 0 | ||
Financial Instruments Gross Unrealized Loss | 0 | 0 | ||
Manufacturing Assets [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure | 0 | |||
Long-term Debt [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Instruments Gross Unrealized Gains | 0 | 0 | ||
Financial Instruments Gross Unrealized Loss | $ (47) | $ (29) |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | $ 389 | $ 389 | |||
Adjustments to Additional Paid in Capital, Other | 893 | ||||
Other Tax Expense (Benefit) | $ 251 | ||||
Equity Ownership, Excluding Consolidated Entity and Equity Method Investee, Percentage | 0.50% | 0.50% | |||
Gain on Sale of Investments | $ 206 | $ 0 | $ 0 | ||
Financing Receivable, Revolving | $ 799 | 799 | 958 | ||
Line of Credit Facility, Remaining Borrowing Capacity | 948 | 948 | 942 | ||
Payments of Dividends | $ 512 | 1,063 | 288 | ||
The Dow Chemical Company [Member] | |||||
Related Party Transaction [Line Items] | |||||
Service Fee with Parent | 10% | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000 | $ 1,000 | |||
Payments of Dividends | 512 | 1,063 | 288 | ||
The Dow Chemical Company [Member] | Estimated Federal Tax Liability, Related Party [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Amounts of Transaction | 113 | 155 | 42 | ||
Noncurrent receivables from related companies | The Dow Chemical Company [Member] | |||||
Related Party Transaction [Line Items] | |||||
Loans and Leases Receivable, Related Parties | 1,543 | 1,543 | |||
Sundry Income (Expense), Net [Member] | |||||
Related Party Transaction [Line Items] | |||||
Gain on Sale of Investments | 206 | ||||
Sundry Income (Expense), Net [Member] | The Dow Chemical Company [Member] | |||||
Related Party Transaction [Line Items] | |||||
Income (Loss) from Equity Method Investments | $ 10 | ||||
Commodity and Raw Material Purchases | Cost of Sales [Member] | The Dow Chemical Company [Member] | |||||
Related Party Transaction [Line Items] | |||||
Costs and Expenses, Related Party | 1,078 | 1,909 | 1,915 | ||
Net Commission Expense [Member] | |||||
Related Party Transaction [Line Items] | |||||
Costs and Expenses, Related Party | 19 | 19 | 21 | ||
Net Commission Expense [Member] | Sundry Income (Expense), Net [Member] | The Dow Chemical Company [Member] | |||||
Related Party Transaction [Line Items] | |||||
Costs and Expenses, Related Party | 19 | 19 | 21 | ||
General and Administrative Expense [Member] | Sundry Income (Expense), Net [Member] | The Dow Chemical Company [Member] | |||||
Related Party Transaction [Line Items] | |||||
Costs and Expenses, Related Party | 72 | 65 | 63 | ||
Activity Based Costs [Member] | Cost of Sales [Member] | The Dow Chemical Company [Member] | |||||
Related Party Transaction [Line Items] | |||||
Costs and Expenses, Related Party | $ 158 | $ 89 | $ 74 | ||
Weather Events Insurance Recovery [Member] | The Dow Chemical Company [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Amounts of Transaction | $ 114 |
BUSINESS AND GEOGRAPHIC AREAS_3
BUSINESS AND GEOGRAPHIC AREAS (Schedule of Revenue by Geographic Area and Other Details) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net trade sales | $ 147 | $ 191 | $ 154 |
Long-lived assets | 894 | 1,182 | 1,208 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net trade sales | 117 | 182 | 139 |
Long-lived assets | 862 | 1,149 | 1,169 |
Asia Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net trade sales | 30 | 3 | 4 |
Long-lived assets | 21 | 22 | 24 |
Rest of World | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net trade sales | 0 | 6 | 11 |
Long-lived assets | $ 11 | $ 11 | $ 15 |
Malaysia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of Total Sales Related to a Specific Country in a Geographic Region | 20% | 1% | 2% |