Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Entity Registrant Name | DowDuPont Inc. | |
Entity Central Index Key | 1,666,700 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Share Outstanding | 2,307,376,875 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 24,245 | $ 13,834 | $ 45,755 | $ 27,064 |
Cost of sales | 17,974 | 10,761 | 34,289 | 20,955 |
Research and development expenses | 803 | 408 | 1,571 | 827 |
Selling, general and administrative expenses | 1,933 | 720 | 3,647 | 1,479 |
Amortization of intangibles | 488 | 157 | 962 | 312 |
Restructuring and asset related charges (credits) - net | 189 | (12) | 451 | (13) |
Integration and separation costs | 558 | 136 | 1,015 | 245 |
Equity in earnings of nonconsolidated affiliates | 250 | 54 | 507 | 250 |
Sundry income (expense) - net | 178 | 322 | 293 | (122) |
Interest expense and amortization of debt discount | 360 | 226 | 710 | 445 |
Income from continuing operations before income taxes | 2,368 | 1,814 | 3,910 | 2,942 |
Provision for income taxes on continuing operations | 565 | 455 | 954 | 668 |
Income from continuing operations, net of tax | 1,803 | 1,359 | 2,956 | 2,274 |
Loss from discontinued operations, net of tax | 0 | 0 | (5) | 0 |
Net income | 1,803 | 1,359 | 2,951 | 2,274 |
Net income attributable to noncontrolling interests | 35 | 38 | 79 | 65 |
Net income available for DowDuPont Inc. common stockholders | $ 1,768 | $ 1,321 | $ 2,872 | $ 2,209 |
Per common share data: | ||||
Earnings per common share from continuing operations - basic (in dollars per share) | $ 0.76 | $ 1.08 | $ 1.24 | $ 1.82 |
Earnings per common share from discontinued operations - basic (in dollars per share) | 0 | 0 | 0 | 0 |
Net income attributable to common stockholders, basic (in dollars per share) | 0.76 | 1.08 | 1.24 | 1.82 |
Earnings per common share from continuing operations - diluted (in dollars per share) | 0.76 | 1.07 | 1.23 | 1.79 |
Earnings per common share from discontinued operations - diluted (in dollars per share) | 0 | 0 | 0 | 0 |
Net income attributable to common stockholders, diluted (in dollars per share) | 0.76 | 1.07 | 1.23 | 1.79 |
Dividends declared per share of common stock (in dollars per share) | $ 0.76 | $ 0.46 | $ 1.14 | $ 0.92 |
Weighted-average common shares outstanding - basic (in shares) | 2,308.9 | 1,211.8 | 2,312.9 | 1,207.2 |
Weighted-average common shares outstanding - diluted (in shares) | 2,323.6 | 1,229 | 2,329 | 1,225.5 |
Depreciation | $ 940 | $ 534 | $ 1,893 | $ 1,112 |
Capital expenditures | $ 810 | $ 795 | $ 1,586 | $ 1,549 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,803 | $ 1,359 | $ 2,951 | $ 2,274 |
Other comprehensive income (loss), net of tax | ||||
Unrealized gains (losses) on investments | (14) | (9) | (39) | 8 |
Cumulative translation adjustments | (2,393) | 387 | (1,060) | 626 |
Pension and other postretirement benefit plans | 127 | 101 | 257 | 203 |
Derivative instruments | 102 | (39) | 119 | (89) |
Total other comprehensive income (loss) | (2,178) | 440 | (723) | 748 |
Comprehensive income (loss) | (375) | 1,799 | 2,228 | 3,022 |
Comprehensive income attributable to noncontrolling interests, net of tax | 2 | 40 | 40 | 93 |
Comprehensive income (loss) attributable to DowDuPont Inc. | $ (377) | $ 1,759 | $ 2,188 | $ 2,929 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |
Current Assets | |||
Cash and cash equivalents (variable interest entities restricted - 2018: $116; 2017: $107) | $ 9,244 | $ 13,438 | |
Marketable securities | 507 | 956 | |
Accounts and notes receivable: | |||
Trade (net of allowance for doubtful receivables - 2018: $156; 2017: $127) | 15,379 | 11,314 | |
Other | 4,924 | 5,579 | |
Inventories | [1] | 15,630 | 16,992 |
Other current assets | 2,213 | 1,614 | |
Total current assets | 47,897 | 49,893 | |
Investments | |||
Investment in nonconsolidated affiliates | 5,214 | 5,336 | |
Other investments (investments carried at fair value - 2018: $1,730; 2017: $1,512) | 2,538 | 2,564 | |
Noncurrent receivables | 578 | 680 | |
Total investments | 8,330 | 8,580 | |
Property | |||
Property | 73,664 | 73,304 | |
Less accumulated depreciation | 38,440 | 37,057 | |
Net property (variable interest entities restricted - 2018: $786; 2017: $907) | 35,224 | 36,247 | |
Other Assets | |||
Goodwill | 59,404 | 59,527 | |
Other intangible assets (net of accumulated amortization - 2018: $6,451; 2017: $5,550) | 32,102 | 33,274 | |
Deferred income tax assets | 1,701 | 1,869 | |
Deferred charges and other assets | 2,709 | 2,774 | |
Total other assets | 95,916 | 97,444 | |
Total Assets | 187,367 | 192,164 | |
Current Liabilities | |||
Notes payable | 2,794 | 1,948 | |
Long-term debt due within one year | 4,606 | 2,067 | |
Accounts payable: | |||
Trade | 7,983 | 9,134 | |
Other | 4,662 | 3,727 | |
Income taxes payable | 874 | 843 | |
Accrued and other current liabilities | 7,191 | 8,409 | |
Total current liabilities | 28,110 | 26,128 | |
Long-Term Debt (variable interest entities nonrecourse - 2018: $147; 2017: $249) | 26,850 | 30,056 | |
Other Noncurrent Liabilities | |||
Deferred income tax liabilities | 5,885 | 6,266 | |
Pension and other postretirement benefits - noncurrent | 17,694 | 18,581 | |
Asbestos-related liabilities - noncurrent | 1,179 | 1,237 | |
Other noncurrent obligations | 7,767 | 7,969 | |
Total other noncurrent liabilities | 32,525 | 34,053 | |
Stockholders' Equity | |||
Common stock (authorized 5,000,000,000 shares of $0.01 par value each; issued 2018: 2,350,333,589 shares; 2017: 2,341,455,518 shares) | 24 | 23 | |
Additional paid-in capital | 81,683 | 81,257 | |
Retained earnings | 30,432 | 29,211 | |
Accumulated other comprehensive loss | (10,732) | (8,972) | |
Unearned ESOP shares | (145) | (189) | |
Treasury stock at cost (2018: 43,239,857 shares; 2017: 14,123,049 shares) | (3,000) | (1,000) | |
DowDuPont's stockholders' equity | 98,262 | 100,330 | |
Noncontrolling interests | 1,620 | 1,597 | |
Total equity | 99,882 | 101,927 | |
Total Liabilities and Equity | $ 187,367 | $ 192,164 | |
[1] | In the first quarter of 2018, the Company adopted Topic 606, which resulted in a cumulative effect change to the Company's January 1, 2018 inventory balance. See Note 1 for additional information. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Trade (allowance for doubtful receivables) | $ 156 | $ 127 |
Other investments (investments carried at fair value | 1,730 | 1,512 |
Other intangible assets (accumulated amortization) | $ 6,451 | $ 5,550 |
Common stock authorized (in shares) | 5,000,000,000 | 5,000,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock issued (in shares) | 2,350,333,589 | 2,341,455,518 |
Treasury stock (in shares) | 43,239,857 | 14,123,049 |
Primary beneficiary | Cash and cash equivalents (variable interest entities restricted) | ||
Pledged current assets | $ 116 | $ 107 |
Primary beneficiary | Net property (variable interest entities restricted | ||
Pledged noncurrent assets | 786 | 907 |
Primary beneficiary | Long term debt VIE | ||
Noncurrent Liabilities - nonrecourse | $ 147 | $ 249 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Activities | ||
Net income | $ 2,951 | $ 2,274 |
Adjustments to reconcile net income to net cash used for operating activities: | ||
Depreciation and amortization | 2,980 | 1,517 |
Provision (Credit) for deferred income tax | (182) | 40 |
Earnings of nonconsolidated affiliates less than dividends received | 199 | 310 |
Net periodic pension benefit cost | 56 | 219 |
Pension contributions | (500) | (381) |
Net gain on sales of assets, businesses and investments | (67) | (190) |
Adjustment to gain on step acquisition of nonconsolidated affiliate | (41) | 0 |
Restructuring and asset related charges (credits) - net | 451 | (13) |
Amortization of Merger-related inventory step-up | 1,385 | 0 |
Other net loss | 425 | 252 |
Accounts and notes receivable | (4,454) | (3,233) |
Inventories | (222) | (839) |
Accounts payable | 65 | 826 |
Other assets and liabilities, net | (3,175) | (883) |
Cash used for operating activities | (47) | (101) |
Investing Activities | ||
Capital expenditures | (1,586) | (1,549) |
Investment in gas field developments | (46) | (68) |
Proceeds from sales of property and businesses, net of cash divested | 96 | 215 |
Investments in and loans to nonconsolidated affiliates | (2) | (484) |
Proceeds from Equity Method Investment, Distribution, Return of Capital | 55 | 54 |
Proceeds from sale of ownership interests in nonconsolidated affiliates | 0 | 54 |
Purchases of investments | (1,891) | (379) |
Proceeds from sales and maturities of investments | 2,328 | 435 |
Proceeds from Sale and Collection of Finance Receivables | 656 | 1,914 |
Cash provided by (used for) investing activities | (390) | 192 |
Financing Activities | ||
Changes in short-term notes payable | 800 | 288 |
Proceeds from issuance of long-term debt | 254 | 0 |
Payments on long-term debt | (842) | (105) |
Purchases of treasury stock | (2,000) | 0 |
Proceeds from issuance of company stock | 142 | 0 |
Proceeds from sales of common stock | 0 | 357 |
Employee taxes paid for share-based payment arrangements | (118) | (85) |
Contingent payment for acquisition of businesses | 0 | (31) |
Distributions to noncontrolling interests | (79) | (51) |
Dividends paid to stockholders | (1,755) | (1,063) |
Other financing activities, net | (4) | 0 |
Cash used for financing activities | (3,602) | (690) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (171) | 208 |
Decrease in cash, cash equivalents and restricted cash | (4,210) | (391) |
Cash, cash equivalents and restricted cash at beginning of period | 14,015 | 6,624 |
Cash, cash equivalents and restricted cash at end of period | $ 9,805 | $ 6,233 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Add'l Paid in Capital | Retained Earnings | Total Accum Other Comp Loss | Unearned ESOP | Treasury Stock | Non-controlling Interests |
Beginning balance at Dec. 31, 2016 | $ 27,229 | $ 3,107 | $ 4,262 | $ 30,338 | $ (9,822) | $ (239) | $ (1,659) | $ 1,242 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income available for DowDuPont Inc. common stockholders | 2,209 | 2,209 | ||||||
Other comprehensive income | 748 | 748 | ||||||
Dividends | (1,115) | (1,115) | ||||||
Common stock issued/sold | 983 | 357 | 626 | |||||
Stock-based compensation and allocation of ESOP shares | (374) | (415) | 41 | |||||
Impact of noncontrolling interests | (74) | (74) | ||||||
Other | (17) | 2 | (15) | |||||
Ending balance at Jun. 30, 2017 | 29,589 | 3,107 | 4,202 | 31,417 | (9,074) | (198) | (1,033) | 1,168 |
Beginning balance at Dec. 31, 2017 | 101,927 | 23 | 81,257 | 29,211 | (8,972) | (189) | (1,000) | 1,597 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income available for DowDuPont Inc. common stockholders | 2,872 | 2,872 | ||||||
Other comprehensive income | (723) | (723) | ||||||
Dividends | (2,629) | (2,629) | ||||||
Common stock issued/sold | 142 | 1 | 141 | 0 | ||||
Stock-based compensation and allocation of ESOP shares | 329 | 285 | 44 | |||||
Impact of noncontrolling interests | 23 | 23 | ||||||
Treasury stock purchases | (2,000) | (2,000) | ||||||
Other | (18) | 0 | (18) | |||||
Ending balance at Jun. 30, 2018 | $ 99,882 | $ 24 | $ 81,683 | $ 30,432 | $ (10,732) | $ (145) | $ (3,000) | $ 1,620 |
Consolidated Statements of Equ8
Consolidated Statements of Equity (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock dividends (in dollars per share) | $ 0.76 | $ 0.46 | $ 1.14 | $ 0.92 |
CONSOLIDATED FINANCIAL STATEMEN
CONSOLIDATED FINANCIAL STATEMENTS | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Basis of Presentation Effective August 31, 2017, pursuant to the merger of equals transactions contemplated by the Agreement and Plan of Merger, dated as of December 11, 2015, as amended on March 31, 2017 ("Merger Agreement"), The Dow Chemical Company ("Dow") and E. I. du Pont de Nemours and Company ("DuPont") each merged with subsidiaries of DowDuPont Inc. ("DowDuPont" or the "Company") and, as a result, Dow and DuPont became subsidiaries of DowDuPont (the "Merger"). Prior to the Merger, DowDuPont did not conduct any business activities other than those required for its formation and matters contemplated by the Merger Agreement. Dow was determined to be the accounting acquirer in the Merger. As a result, the historical financial statements of Dow for periods prior to the Merger are considered to be the historical financial statements of DowDuPont. The unaudited interim consolidated financial statements of DowDuPont and its subsidiaries were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and reflect all adjustments (including normal recurring accruals) which, in the opinion of management, are considered necessary for the fair presentation of the results for the periods presented. Results from interim periods should not be considered indicative of results for the full year. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Except as otherwise indicated by the context, the term "Dow" includes Dow and its consolidated subsidiaries, "DuPont" includes DuPont and its consolidated subsidiaries, "Union Carbide" means Union Carbide Corporation, a wholly owned subsidiary of Dow, and "Dow Silicones" means Dow Silicones Corporation (formerly known as Dow Corning Corporation, which changed its name effective as of February 1, 2018), a wholly owned subsidiary of Dow. Changes to Prior Period Consolidated Financial Statements As a result of the Merger, certain reclassifications of prior period amounts have been made to improve comparability and conform with the current period presentation. Presentation changes were made to the consolidated statements of income, consolidated statements of cash flows and consolidated statements of equity. In addition, certain reclassifications of prior period data have been made in the Notes to the Consolidated Financial Statements to conform with the current period presentation. In the first quarter of 2018, the Company adopted new accounting standards that required retrospective application. The Company updated the consolidated statements of income as a result of adopting Accounting Standards Update ("ASU") 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The consolidated statements of cash flows were updated as a result of adopting ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" and ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash." See Note 2 for additional information. Changes to the consolidated financial statements as a result of the Merger and the retrospective application of the new accounting standards are summarized as follows: Summary of Changes to the Consolidated Statements of Income Three Months Ended Jun 30, 2017 In millions As Filed Merger Reclass 1 ASU Impact 2 Updated Cost of sales $ 10,764 $ (1 ) $ (2 ) $ 10,761 Research and development expenses $ 405 $ — $ 3 $ 408 Selling, general and administrative expenses $ 855 $ (135 ) $ — $ 720 Integration and separation costs $ — $ 136 $ — $ 136 Sundry income (expense) - net $ 299 $ 22 $ 1 $ 322 Interest income $ 22 $ (22 ) $ — $ — Summary of Changes to the Consolidated Statements of Income Six Months Ended Jun 30, 2017 In millions As Filed Merger Reclass 1 ASU Impact 2 Updated Cost of sales $ 20,961 $ (1 ) $ (5 ) $ 20,955 Research and development expenses $ 821 $ — $ 6 $ 827 Selling, general and administrative expenses $ 1,722 $ (244 ) $ 1 $ 1,479 Integration and separation costs $ — $ 245 $ — $ 245 Sundry income (expense) - net $ (171 ) $ 47 $ 2 $ (122 ) Interest income $ 47 $ (47 ) $ — $ — 1. Costs associated with integration and separation activities are now separately reported as “Integration and separation costs” and were reclassified from "Cost of sales" and “Selling, general and administrative expenses.” In addition, “Interest income” was reclassified to “Sundry income (expense) - net.” 2. Reflects changes resulting from the adoption of ASU 2017-07. See Note 2 for additional information. Summary of Changes to the Consolidated Statements of Cash Flows Six Months Ended Jun 30, 2017 In millions As Filed Merger Reclass ASU Impact 1 Updated Operating Activities Net periodic pension benefit cost $ — $ 219 $ — $ 219 Net gain on sales of assets, businesses and investments $ — $ (190 ) $ — $ (190 ) Net gain on sales of investments $ (53 ) $ 53 $ — $ — Net gain on sales of property, businesses and consolidated companies $ (135 ) $ 135 $ — $ — Net gain on sale of ownership interests in nonconsolidated affiliates $ (2 ) $ 2 $ — $ — Other net loss $ 75 $ 177 $ — $ 252 Proceeds from interests in trade accounts receivable conduits $ 804 $ — $ (804 ) $ — Accounts and notes receivable $ (2,123 ) $ — $ (1,110 ) $ (3,233 ) Accounts payable $ 620 $ 206 $ — $ 826 Other assets and liabilities, net $ (279 ) $ (602 ) $ (2 ) $ (883 ) Cash provided by (used for) operating activities $ 1,815 $ — $ (1,916 ) $ (101 ) Investing Activities Payment into escrow account $ (130 ) $ — $ 130 $ — Distribution from escrow account $ 130 $ — $ (130 ) $ — Acquisitions of property, businesses and consolidated companies, net of cash acquired $ (31 ) $ — $ 31 $ — Proceeds from interests in trade accounts receivable conduits $ — $ — $ 1,914 $ 1,914 Cash provided by (used for) investing activities $ (1,753 ) $ — $ 1,945 $ 192 Financing Activities Contingent payment for acquisition of businesses $ — $ — $ (31 ) $ (31 ) Cash used for financing activities $ (659 ) $ — $ (31 ) $ (690 ) Summary Decrease in cash, cash equivalents and restricted cash $ (389 ) $ — $ (2 ) $ (391 ) Cash, cash equivalents and restricted cash at beginning of period $ 6,607 $ — $ 17 $ 6,624 Cash, cash equivalents and restricted cash at end of period $ 6,218 $ — $ 15 $ 6,233 1. Reflects the adoption of ASU 2016-15 and ASU 2016-18. See Note 2 for additional information. In connection with the review and implementation of ASU 2016-15, the Company also changed the prior year value of “Proceeds from interests in trade accounts receivable conduits” due to additional interpretive guidance of the required method for calculating the cash received from beneficial interests in the conduits. Summary of Changes to the Consolidated Statements of Equity Six Months Ended Jun 30, 2017 In millions As Filed Merger Reclass Updated Dividend equivalents on participating securities $ (15 ) $ 15 $ — Other $ — $ (15 ) $ (15 ) Opening Balance Sheet Impact of Accounting Standards Adoption In the first quarter of 2018, the Company adopted ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)" and the associated ASUs (collectively, "Topic 606"), ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" and ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory." See Note 2 for additional information on these ASUs. The cumulative effect on the Company's January 1, 2018, consolidated balance sheet as a result of adopting these accounting standards is summarized in the following table: Summary of Impacts to the Consolidated Balance Sheet Dec 31, 2017 Adjustments due to: Jan 1, 2018 In millions As Filed Topic 606 ASU 2016-01 ASU 2016-16 Updated Assets Accounts and notes receivable - Trade $ 11,314 $ 87 $ — $ — $ 11,401 Accounts and notes receivable - Other $ 5,579 $ (8 ) $ — $ — $ 5,571 Inventories $ 16,992 $ (64 ) $ — $ — $ 16,928 Other current assets $ 1,614 $ 130 $ — $ 31 $ 1,775 Total current assets $ 49,893 $ 145 $ — $ 31 $ 50,069 Deferred income tax assets $ 1,869 $ 26 $ — $ 10 $ 1,905 Deferred charges and other assets $ 2,774 $ 43 $ — $ — $ 2,817 Total other assets $ 97,444 $ 69 $ — $ 10 $ 97,523 Total Assets $ 192,164 $ 214 $ — $ 41 $ 192,419 Liabilities Accounts payable - Trade $ 9,134 $ (3 ) $ — $ — $ 9,131 Accounts payable - Other $ 3,727 $ 10 $ — $ — $ 3,737 Income taxes payable $ 843 $ (2 ) $ — $ — $ 841 Accrued and other current liabilities $ 8,409 $ 171 $ — $ — $ 8,580 Total current liabilities $ 26,128 $ 176 $ — $ — $ 26,304 Deferred income tax liabilities $ 6,266 $ 3 $ — $ — $ 6,269 Other noncurrent obligations $ 7,969 $ 117 $ — $ — $ 8,086 Total other noncurrent liabilities $ 34,053 $ 120 $ — $ — $ 34,173 Stockholders' Equity Retained earnings $ 29,211 $ (82 ) $ (20 ) $ 41 $ 29,150 Accumulated other comprehensive loss $ (8,972 ) $ — $ 20 $ — $ (8,952 ) DowDuPont's stockholders' equity $ 100,330 $ (82 ) $ — $ 41 $ 100,289 Total equity $ 101,927 $ (82 ) $ — $ 41 $ 101,886 Total Liabilities and Equity $ 192,164 $ 214 $ — $ 41 $ 192,419 The most significant changes as a result of adopting Topic 606 relate to the reclassification of the Company's return assets and refund liabilities in the Agriculture segment in the consolidated balance sheets. Under previous guidance, the Company accrued the amount of expected product returns as a reduction of "Accounts and notes receivable - Trade" with the value associated with the expected returns recorded in "Inventories" in the consolidated balance sheets. Under Topic 606, the Company now records the amount of expected product returns as refund liabilities, included in "Accrued and other current liabilities" and the products expected to be recovered as return assets, included in "Other current assets" in the consolidated balance sheets. The reclassifications of return assets and refund liabilities were $61 million and $119 million , respectively, at January 1, 2018. In addition, deferred revenue, included in "Accrued and other current liabilities" and "Other noncurrent obligations" in the consolidated balance sheets, increased as certain performance obligations, which were previously recognized over time and related to the licensing of certain rights to patents and technology, as well as other performance obligations, are now recognized at a point in time as none of the three criteria for 'over time' recognition under Topic 606 are met. In the second quarter of 2018, the Company early adopted ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." This standard was adopted on April 1, 2018, and resulted in a $1,057 million increase to retained earnings due to the reclassification from accumulated other comprehensive loss. The reclassification was primarily related to the change in the federal corporate tax rate and the effect of the Tax Cuts and Jobs Act of 2017 ("The Act") on the Company's pension plans, derivative instruments, available-for-sale securities and cumulative translation adjustments. This reclassification is reflected in the "Adoption of accounting standards" line in the consolidated statements of equity. See Note 2 for additional information. Current Period Impact of Topic 606 The following table summarizes the effects of adopting Topic 606 on the Company's consolidated balance sheets, which was applied prospectively to contracts not completed at January 1, 2018. The effects of adopting Topic 606 did not have a material impact on the consolidated statements of income and the consolidated statements of cash flows. Summary of Impacts to the Consolidated Balance Sheets As Reported at Jun 30, 2018 Adjustments Balance at Jun 30, 2018 Excluding Adoption of Topic 606 In millions Assets Accounts and notes receivable - Trade $ 15,379 $ (177 ) $ 15,202 Accounts and notes receivable - Other $ 4,924 $ 27 $ 4,951 Inventories $ 15,630 $ 81 $ 15,711 Other current assets $ 2,213 $ (155 ) $ 2,058 Total current assets $ 47,897 $ (224 ) $ 47,673 Deferred income tax assets $ 1,701 $ (28 ) $ 1,673 Deferred charges and other assets $ 2,709 $ (43 ) $ 2,666 Total other assets $ 95,916 $ (71 ) $ 95,845 Total Assets $ 187,367 $ (295 ) $ 187,072 Liabilities Accounts payable - Other $ 4,662 $ (10 ) $ 4,652 Income taxes payable $ 874 $ 2 $ 876 Accrued and other current liabilities $ 7,191 $ (187 ) $ 7,004 Total current liabilities $ 28,110 $ (195 ) $ 27,915 Deferred income tax liabilities $ 5,885 $ (11 ) $ 5,874 Other noncurrent obligations $ 7,767 $ (134 ) $ 7,633 Total other noncurrent liabilities $ 32,525 $ (145 ) $ 32,380 Stockholders' Equity Retained earnings $ 30,432 $ 45 $ 30,477 DowDuPont's stockholders' equity $ 98,262 $ 45 $ 98,307 Total equity $ 99,882 $ 45 $ 99,927 Total Liabilities and Equity $ 187,367 $ (295 ) $ 187,072 Significant Accounting Policy Updates The Company's significant accounting policy for revenue was updated as a result of the adoption of Topic 606: Revenue The Company recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. To determine revenue recognition for the arrangements that the Company determines are within the scope of Topic 606, the Company 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 4 for additional information on revenue recognition. Revenue related to Dow's insurance operations includes third-party insurance premiums, which are earned over the terms of the related insurance policies and reinsurance contracts. As a result of the adoption of ASU 2018-02, the Company's significant accounting policy for income taxes was updated to indicate the Company uses the portfolio approach for releasing income tax effects from accumulated other comprehensive loss. |
RECENT ACCOUNTING GUIDANCE
RECENT ACCOUNTING GUIDANCE | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING GUIDANCE | RECENT ACCOUNTING GUIDANCE Recently Adopted Accounting Guidance In the second quarter of 2018, the Company early adopted ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities," which amends the hedge accounting recognition and presentation under Accounting Standards Codification ("ASC") 815, with the objectives of improving the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities and simplifying the application of hedge accounting by preparers. The new standard expands the strategies eligible for hedge accounting, relaxes the timing requirements of hedge documentation and effectiveness assessments, and permits, in certain cases, the use of qualitative assessments on an ongoing basis to assess hedge effectiveness. The new guidance also requires new disclosures and presentation. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted in any interim or annual period after issuance of the ASU. Entities must adopt the new guidance by applying a modified retrospective approach to hedging relationships existing as of the adoption date. The adoption of the new guidance did not have a material impact on the consolidated financial statements. In the second quarter of 2018, the Company early adopted ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income," which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from The Act, which was enacted on December 22, 2017, and requires certain disclosures about stranded tax effects. An entity has the option of applying the new guidance at the beginning of the period of adoption or retrospectively to each period (or periods) in which the tax effects related to items remaining in accumulated other comprehensive income are recognized. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and early adoption is permitted, including adoption in an interim period for reporting periods for which financial statements have not yet been issued. The Company's adoption of the new standard was applied prospectively at the beginning of the second quarter of 2018, with a reclassification of the stranded tax effects as a result of The Act from accumulated other comprehensive loss to retained earnings. See Note 1 for additional information. In the first quarter of 2018, the Company adopted ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," which is the new comprehensive revenue recognition standard that supersedes the revenue recognition requirements in Topic 605, "Revenue Recognition," and most industry specific guidance. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to a customer in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In 2015 and 2016, the Financial Accounting Standards Board ("FASB") issued additional ASUs related to Topic 606 that delayed the effective date of the guidance and clarified various aspects of the new revenue guidance, including principal versus agent considerations, identification of performance obligations, and accounting for licenses, and included other improvements and practical expedients. The new guidance was effective for annual and interim periods beginning after December 15, 2017. The Company elected to adopt the new guidance using the modified retrospective transition method for all contracts not completed as of the date of adoption. The Company recognized the cumulative effect of applying the new revenue standard as an adjustment to the opening balance of retained earnings at the beginning of the first quarter of 2018. The comparative periods have not been restated and continue to be accounted for under Topic 605. The adoption of the new guidance did not have a material impact on the consolidated financial statements. See Notes 1 and 4 for additional disclosures regarding the Company's contracts with customers as well as the impact of adopting Topic 606. In the first quarter of 2018, the Company adopted ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Changes to the current guidance primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company applied the amendments in the new guidance by means of a cumulative-effect adjustment to the opening balance of retained earnings at the beginning of the first quarter of 2018. The adoption of the new guidance did not have a material impact on the consolidated financial statements. See Notes 1 and 18 for additional information. In the first quarter of 2018, the Company adopted ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," which addresses diversity in practice in how certain cash receipts and cash payments are presented and classified in the statements of cash flows and addresses eight specific cash flow issues. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. A key provision in the new guidance impacted the presentation of interests in certain trade accounts receivable conduits, which were retrospectively reclassified from "Operating Activities" to "Investing Activities" in the consolidated statements of cash flows. See Note 1 for additional information. In the first quarter of 2018, the Company adopted ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory," which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments were effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The new guidance was applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings at the beginning of the first quarter of 2018. The adoption of this guidance did not have a material impact on the consolidated financial statements. See Note 1 for additional information. In the first quarter of 2018, the Company adopted ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash," which clarifies how entities should present restricted cash and restricted cash equivalents in the statements of cash flows, and as a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statements of cash flows. An entity with a material balance of restricted cash and restricted cash equivalents must disclose information about the nature of the restrictions. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The new guidance changed the presentation of restricted cash in the consolidated statements of cash flows and was implemented on a retrospective basis in the first quarter of 2018. See Notes 1 and 6 for additional information. In the first quarter of 2018, the Company adopted ASU 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business," which narrows the existing definition of a business and provides a framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. The guidance requires an entity to evaluate if substantially all of the fair value of gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities (collectively the "set") is not a business. To be considered a business, the set would need to include an input and a substantive process that together significantly contribute to the ability to create outputs, as defined by the ASU. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and should be applied prospectively. The Company will apply the new guidance to all applicable transactions after the adoption date. In the first quarter of 2018, the Company adopted ASU 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost," which amends the requirements related to the income statement presentation of the components of net periodic benefit cost for employer sponsored defined benefit pension and other postretirement benefit plans. Under the new guidance, an entity must disaggregate and present the service cost component of net periodic benefit cost in the same income statement line items as other employee compensation costs arising from services rendered during the period, and only the service cost component will be eligible for capitalization. Other components of net periodic benefit cost must be presented separately from the line items that includes the service cost. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Entities were required to use a retrospective transition method to adopt the requirement for separate income statement presentation of the service cost and other components, and a prospective transition method to adopt the requirement to limit the capitalization of benefit cost to the service component. Accordingly, in the first quarter of 2018, the Company used a retrospective transition method to reclassify net periodic benefit cost, other than the service component, from "Cost of sales," "Research and development expenses" and "Selling, general and administrative expenses" to "Sundry income (expense) - net" in the consolidated statements of income. See Note 1 for additional information. Accounting Guidance Issued But Not Adopted at June 30, 2018 In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The new guidance requires that a lessee recognize assets and liabilities for leases with lease terms of more than twelve months and recognition, presentation and measurement in the financial statements will depend on its classification as a finance or operating lease. In addition, the new guidance will require disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. Lessor accounting remains largely unchanged from current U.S. GAAP but does contain some targeted improvements to align with the new revenue recognition guidance issued in 2014. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, using a modified retrospective approach, and early adoption is permitted. The Company has a cross-functional team in place to evaluate and implement the new guidance. The team continues to review existing lease arrangements and has engaged third parties to assist with the collection of lease data. The impact of applying the practical expedients and accounting policy elections has been evaluated and the Company is in the process of documenting the related considerations and decisions. The Company is currently implementing software solutions, enhancing accounting systems and updating business processes and controls related to leases. Collectively, these activities are expected to facilitate the Company's ability to meet the new accounting and disclosure requirements upon adoption in the first quarter of 2019. The Company is working to quantify the impact and anticipates that the adoption of the new standard will result in a material increase in lease-related assets and liabilities in the consolidated balance sheets. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS Merger of Equals of Dow and DuPont At the effective time of the Merger, each share of common stock, par value $2.50 per share, of Dow ("Dow Common Stock") (excluding any shares of Dow Common Stock that were held in treasury immediately prior to the effective time of the Merger, which were automatically canceled and retired for no consideration) was converted into the right to receive one fully paid and non-assessable share of common stock, par value $0.01 per share, of DowDuPont ("DowDuPont Common Stock"). Upon completion of the Merger, (i) each share of common stock, par value $0.30 per share, of DuPont (“DuPont Common Stock”) (excluding any shares of DuPont Common Stock that were held in treasury immediately prior to the effective time of the Merger, which were automatically canceled and retired for no consideration) was converted into the right to receive 1.2820 fully paid and non-assessable shares of DowDuPont Common Stock, in addition to cash in lieu of any fractional shares of DowDuPont Common Stock, and (ii) each share of DuPont Preferred Stock $4.50 Series and DuPont Preferred Stock $3.50 Series (collectively, the “DuPont Preferred Stock”) issued and outstanding immediately prior to the effective time of the Merger remains issued and outstanding and was unaffected by the Merger. As provided in the Merger Agreement, at the effective time of the Merger, Dow stock options and other equity awards were generally automatically converted into stock options and equity awards with respect to DowDuPont Common Stock and DuPont stock options and other equity awards, after giving effect to the exchange ratio, were converted into stock options and equity awards with respect to DowDuPont Common Stock, and otherwise generally on the same terms and conditions under the applicable plans and award agreements immediately prior to the effective time of the Merger. DowDuPont intends to pursue, subject to certain customary conditions, including, among others, the effectiveness of registration statements filed with the Securities and Exchange Commission and approval by the Board of Directors of DowDuPont, the separation of the combined Company's agriculture, materials science and specialty products businesses through one or more tax-efficient transactions ("Intended Business Separations"). Preliminary Allocation of Purchase Price Based on an evaluation of the provisions of ASC 805, "Business Combinations" ("ASC 805"), Dow was determined to be the accounting acquirer in the Merger. DowDuPont has applied the acquisition method of accounting with respect to the assets and liabilities of DuPont, which have been measured at fair value as of the date of the Merger. DuPont's assets and liabilities were measured at estimated fair values at August 31, 2017, primarily using Level 3 inputs. Estimates of fair value represent management's best estimate and require a complex series of judgments about future events and uncertainties. Third-party valuation specialists were engaged to assist in the valuation of these assets and liabilities. The total fair value of consideration transferred for the Merger was $74,680 million . Total consideration is comprised of the equity value of the DowDuPont shares at August 31, 2017, that were issued in exchange for DuPont shares, the cash value for fractional shares, and the portion of DuPont's share awards and share options earned at August 31, 2017. The following table summarizes the fair value of consideration exchanged as a result of the Merger: Merger Consideration In millions (except exchange ratio) DuPont Common Stock outstanding at Aug 31, 2017 868.3 DuPont exchange ratio 1.2820 DowDuPont Common Stock issued in exchange for DuPont Common Stock 1,113.2 Fair value of DowDuPont Common Stock issued 1 $ 74,195 Fair value of DowDuPont equity awards issued in exchange for outstanding DuPont equity awards 2 485 Total consideration $ 74,680 1. Amount was determined based on the price per share of Dow Common Stock of $66.65 on August 31, 2017. 2. Represents the fair value of replacement awards issued for DuPont's equity awards outstanding immediately before the Merger and attributable to the service periods prior to the Merger. The previous DuPont equity awards were converted into the right to receive 1.2820 shares of DowDuPont Common Stock. The acquisition method of accounting requires, among other things, that identifiable assets acquired and liabilities assumed be recognized on the balance sheet at their respective fair value as of the acquisition date. In determining the fair value, DowDuPont utilized various forms of the income, cost and market approaches depending on the asset or liability being fair valued. The estimation of fair value required significant judgments related to future net cash flows (including net sales, cost of products sold, selling and marketing costs, and working capital/contributory asset charges), discount rates reflecting the risk inherent in each cash flow stream, competitive trends, market comparables and other factors. Inputs were generally determined by taking into account historical data, supplemented by current and anticipated market conditions, and growth rates. The table below presents the preliminary fair value that was allocated to DuPont's assets and liabilities based upon fair values as determined by DowDuPont. The valuation process to determine the fair values is not yet complete. The Company estimated the preliminary fair value of acquired assets and liabilities as of the effective time of the Merger based on information currently available and continues to adjust those estimates upon refinement of market participant assumptions for integrating businesses, finalization of tax returns in the pre-merger period and application of push-down accounting at the subsidiary level. In the first six months of 2018, DowDuPont made measurement period adjustments to reflect facts and circumstances in existence as of the effective time of the Merger. These adjustments primarily included a $394 million increase in goodwill, a $230 million decrease in property, a $117 million decrease in indefinite-lived trademarks and tradenames and customer-related assets, a $16 million decrease in assets held for sale, a $60 million increase in other current assets, a $56 million increase in noncontrolling interests and a $28 million decrease in investments in nonconsolidated affiliates. The preliminary fair values are substantially complete with the exception of identifiable other intangible assets, property, income taxes and goodwill. As the Company finalizes the fair value of assets acquired and liabilities assumed, additional purchase price adjustments may be recorded during the measurement period, but no later than one year from the date of the Merger. The Company will reflect measurement period adjustments, if any, in the period in which the adjustments are recognized. Final determination of the fair values may result in further adjustments to the values presented in the following table: DuPont Assets Acquired and Liabilities Assumed on Aug 31, 2017 Estimated fair value adjusted In millions Fair Value of Assets Acquired Cash and cash equivalents $ 4,005 Marketable securities 2,849 Accounts and notes receivable - Trade 6,199 Accounts and notes receivable - Other 1,648 Inventories 8,806 Other current assets 420 Assets held for sale 3,732 Investment in nonconsolidated affiliates 1,626 Other investments 50 Noncurrent receivables 84 Property 11,711 Goodwill 45,499 Other intangible assets 27,104 Deferred income tax assets 284 Deferred charges and other assets 1,932 Total Assets $ 115,949 Fair Value of Liabilities Assumed Notes payable $ 4,046 Long-term debt due within one year 1,273 Accounts payable - Trade 2,346 Accounts payable - Other 952 Income taxes payable 261 Accrued and other current liabilities 3,517 Liabilities held for sale 125 Long-term debt 9,878 Deferred income tax liabilities 8,319 Pension and other postretirement benefits - noncurrent 8,056 Other noncurrent obligations 2,023 Total Liabilities $ 40,796 Noncontrolling interests 473 Net Assets (Consideration for the Merger) $ 74,680 Integration and Separation Costs Integration and separation costs have been and are expected to be significant in the future. The Company incurred "Integration and separation costs," reflected in "Income from continuing operations before income taxes" in the consolidated statements of income, of $558 million and $1,015 million for the three and six months ended June 30, 2018, respectively, and $136 million and $245 million for the three and six months ended June 30, 2017, respectively. These costs to date primarily consisted of financial advisory, information technology, legal, accounting, consulting, and other professional advisory fees associated with the preparation and execution of activities related to the Merger, post-merger integration and separation, and the ownership restructure of Dow Silicones. While the Company assumed that a certain level of expenses would be incurred, there are many factors that could affect the total amount or the timing of these expenses, and many of the expenses that will be incurred are, by their nature, difficult to estimate. H&N Business On March 31, 2017, DuPont entered into a definitive agreement (the "FMC Transaction Agreement") with FMC Corporation ("FMC") for FMC to acquire the assets related to DuPont's crop protection business and research and development organization (the "Divested Ag Business") that DuPont was required to divest in order to obtain European Commission approval of the Merger. In addition, under the FMC Transaction Agreement, DuPont agreed to acquire certain assets relating to FMC’s Health and Nutrition segment, excluding its Omega-3 products (the "H&N Business") (the sale of the Divested Ag Business and acquisition of the H&N Business referred to collectively as the "FMC Transactions"). On November 1, 2017, DuPont completed the FMC Transactions through the acquisition of the H&N Business and the divestiture of the Divested Ag Business. The acquisition is being integrated into the Nutrition & Biosciences segment to enhance the Company’s position as a leading provider of sustainable, bio-based food ingredients and allow for expanded capabilities in the pharma excipients space. DuPont accounted for the acquisition in accordance with ASC 805, which requires the assets acquired and liabilities assumed to be recognized on the balance sheet at their fair values as of the acquisition date. The purchase accounting and purchase price allocation for the H&N Business are substantially complete. However, the Company continues to refine the preliminary valuation of certain acquired assets, such as intangible assets, deferred income taxes and property, which could impact the amount of residual goodwill recorded. The Company will finalize the amounts recognized as it obtains the information necessary to complete the analysis, but no later than one year from the date of the acquisition. The preliminary fair value allocated to the assets acquired and liabilities assumed for the H&N Business at November 1, 2017 was $1,970 million . There were no material updates to the purchase accounting and purchase price allocation for the six months ended June 30, 2018. For additional information regarding the acquisition of the H&N Business, see Note 3 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE Revenue Recognition The majority of the Company's revenue is derived from product sales. In the three and six months ended June 30, 2018 , 99 percent of the Company's sales related to product sales ( 98 percent in the three and six months ended June 30, 2017). The remaining sales were primarily related to Dow's insurance operations and licensing of patents and technologies. As of January 1, 2018, the Company accounts for revenue in accordance with Topic 606, except for revenue from Dow's insurance operations, which is accounted for in accordance with Topic 944, "Financial Services - Insurance." Product Sales Product sales consist of sales of the Company's products to manufacturers, distributors and farmers. The Company considers order confirmations or purchase orders, which in some cases are governed by master supply agreements, to be contracts with a customer. Product sale contracts are generally short-term contracts where the time between order confirmation and satisfaction of all performance obligations is less than one year. However, the Company has some long-term contracts which can span multiple years. Revenues from product sales are recognized when the customer obtains control of the Company’s product, which occurs at a point in time, usually upon shipment, with payment terms typically in the range of 30 to 60 days after invoicing depending on business and geographic region, with the exception of the Agriculture segment, where payment terms are generally less than one year after invoicing. The Company has elected the practical expedient to not adjust the amount of consideration for the effects of a significant financing component for all instances in which the period between payment and transfer of the goods will be one year or less. When the Company performs shipping and handling activities after the transfer of control to the customer (e.g., when control transfers prior to shipment), these are considered fulfillment activities, and accordingly, the costs are accrued when the related revenue is recognized. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues. The Company has elected to use the practical expedient to expense cash and non-cash sales incentives as the amortization period for the costs to obtain the contract would have been one year or less. Certain long-term contracts include a series of distinct goods that are delivered continuously to the customer through a pipeline (e.g., feedstocks). For these types of product sales, the Company invoices the customer in an amount that directly corresponds with the value to the customer of the Company’s performance to date. As a result, the Company recognizes revenue based on the amount billable to the customer in accordance with the right to invoice practical expedient. The transaction price includes estimates for reductions in revenue from customer rebates and rights of return on product sales. These amounts are estimated based upon the most likely amount of consideration to which the customer will be entitled. The Company’s obligation for rights of return is limited primarily to the Agriculture segment. All estimates are based on historical experience, anticipated performance, and the Company’s best judgment at the time to the extent it is probable that a significant reversal of revenue recognized will not occur. All estimates for variable consideration are reassessed periodically. For contracts with multiple performance obligations, the Company allocates the transaction price to each performance obligation based on the relative standalone selling price. The standalone selling price is the observable price which depicts the price as if sold to a similar customer in similar circumstances. Patents, Trademarks and Licenses The Company enters into licensing arrangements in which it licenses certain rights of its patents and technology to customers. Revenue from the majority of the Company’s licenses for patents and technology is derived from sales-based royalties. The Company estimates the amount of sales-based royalties to which it expects to be entitled based on historical sales to the customer. For the remaining revenue from licensing arrangements, payments are typically received from the Company’s licensees based on billing schedules established in each contract. Revenue is recognized by the Company when the performance obligation is satisfied. Remaining Performance Obligations Remaining performance obligations represent the transaction price allocated to unsatisfied or partially unsatisfied performance obligations. At June 30, 2018 , the Company had remaining performance obligations related to material rights granted to customers for contract renewal options of $99 million and unfulfilled performance obligations for the licensing of technology of $228 million . The Company expects revenue to be recognized for the remaining performance obligations over the next one to six years. The remaining performance obligations are for product sales that have expected durations of one year or less, product sales of materials delivered through a pipeline for which the Company has elected the right to invoice practical expedient, or variable consideration attributable to royalties for licenses of patents and technology. The Company has received advance payments from customers related to long-term supply agreements and royalty payments that are deferred and recognized over the life of the contract, with remaining contract terms that range up to 23 years. The Company will have rights to future consideration for revenue recognized when product is delivered to the customer. These payments are included in "Accrued and other current liabilities" and "Other noncurrent obligations" in the consolidated balance sheets. Disaggregation of Revenue The Company disaggregates its revenue from contracts with customers by segment and business or major product line and geographic region, as the Company believes it best depicts the nature, amount, timing and uncertainty of its revenue and cash flows. See details in the tables below: Net Trade Revenue by Segment and Business or Major Product Line Three Months Ended Jun 30, 2018 Six Months Ended Jun 30, 2018 In millions Crop Protection $ 1,853 $ 3,348 Seed 3,877 6,190 Agriculture $ 5,730 $ 9,538 Coatings & Performance Monomers $ 1,084 $ 2,025 Consumer Solutions 1,515 2,878 Performance Materials & Coatings $ 2,599 $ 4,903 Construction Chemicals $ 226 $ 408 Industrial Solutions 1,198 2,357 Polyurethanes & CAV 2,458 4,828 Other 3 7 Industrial Intermediates & Infrastructure $ 3,885 $ 7,600 Hydrocarbons & Energy $ 1,853 $ 3,653 Packaging and Specialty Plastics 4,246 8,456 Packaging & Specialty Plastics $ 6,099 $ 12,109 Advanced Printing $ 136 $ 258 Display & Other Technologies 82 142 Interconnect Solutions 298 579 Photovoltaic & Advanced Materials 282 571 Semiconductor Technologies 405 806 Electronics & Imaging $ 1,203 $ 2,356 Industrial Biosciences $ 561 $ 1,102 Nutrition & Health 1,214 2,393 Nutrition & Biosciences $ 1,775 $ 3,495 Nylon Enterprise & Polyester $ 699 $ 1,367 Performance Resins 486 837 Performance Solutions 283 689 Transportation & Advanced Polymers $ 1,468 $ 2,893 Aramids $ 398 $ 791 Construction 435 820 TYVEK® Enterprise 316 608 Water Solutions 262 491 Safety & Construction $ 1,411 $ 2,710 Corporate $ 75 $ 151 Total $ 24,245 $ 45,755 Net Trade Revenue by Geographic Region Three Months Ended Six Months Ended In millions U.S. & Canada $ 10,452 $ 18,361 EMEA 1 6,294 13,213 Asia Pacific 5,398 10,188 Latin America 2,101 3,993 Total $ 24,245 $ 45,755 1. Europe, Middle East and Africa. Contract Balances The Company receives payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include amounts related to the Company’s contractual right to consideration for completed performance obligations not yet invoiced. Contract liabilities include payments received in advance of performance under the contract and are realized when the associated revenue is recognized under the contract. "Contract liabilities - current" primarily reflects deferred revenue from prepayments in the Agriculture segment for contracts with customers where the Company receives advance payments for product to be delivered in future periods. "Contract liabilities - noncurrent" includes advance payment for product that the Company has received from customers related to long-term supply agreements and royalty payments that are deferred and recognized over the life of the contract. The Company classifies deferred revenue as current (12 months or less) or noncurrent based on the timing of when the Company expects to recognize revenue. Revenue recognized in the first six months of 2018 from amounts included in contract liabilities at the beginning of the period was approximately $1,925 million . The decrease in deferred revenue from December 31, 2017 to June 30, 2018 was primarily due to the timing of seed deliveries to customers for the growing season in U.S. & Canada in the Agriculture segment. In the first six months of 2018, the amount of contract assets reclassified to receivables as a result of the right to the transaction consideration becoming unconditional was insignificant. The Company did not recognize any asset impairment charges related to contract assets during the period. Contract Balances Jun 30, 2018 Topic 606 Adjustments Jan 1, 2018 Dec 31, 2017 In millions Accounts and notes receivable - Trade $ 15,379 $ 87 $ 11,314 Contract assets - current 1 $ 82 $ 58 $ — Contract assets - noncurrent 2 $ 45 $ 43 $ — Contract liabilities - current 3 $ 544 $ 52 $ 2,131 Contract liabilities - noncurrent 4 $ 1,496 $ 117 $ 1,413 1. Included in "Other current assets" in the consolidated balance sheets. 2. Included in "Deferred charges and other assets" in the consolidated balance sheets. 3. Included in "Accrued and other current liabilities" in the consolidated balance sheets. 4. Included in "Other noncurrent obligations" in the consolidated balance sheets. |
RESTRUCTURING AND ASSET RELATED
RESTRUCTURING AND ASSET RELATED CHARGES (CREDITS) - NET | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND ASSET RELATED CHARGES | RESTRUCTURING AND ASSET RELATED CHARGES (CREDITS) - NET DowDuPont Cost Synergy Program In September and November 2017, DowDuPont approved post-merger restructuring actions under the DowDuPont Cost Synergy Program (the “Synergy Program”), adopted by the DowDuPont Board of Directors. The plan is designed to integrate and optimize the organization following the Merger and in preparation for the Intended Business Separations. Based on all actions approved to date under the Synergy Program, the Company expects to record total pretax restructuring charges of approximately $2 billion , comprised of approximately $845 million to $935 million of severance and related benefit costs; $400 million to $540 million of asset write-downs and write-offs; and $400 million to $450 million of costs associated with exit and disposal activities. The Synergy Program includes certain asset actions that are reflected in the preliminary fair value measurement of DuPont’s assets as of the Merger date. Current estimated total pretax restructuring charges could be impacted by future adjustments to the preliminary fair value of DuPont’s assets. As a result of these actions, the Company recorded pretax restructuring charges of $874 million in 2017, consisting of severance and related benefit costs of $510 million , asset write-downs and write-offs of $290 million and costs associated with exit and disposal activities of $74 million . For the three months ended June 30, 2018, the Company recorded pretax restructuring charges of $182 million , consisting of severance and related benefit costs of $122 million , asset write-downs and write-offs of $33 million and costs associated with exit and disposal activities of $27 million . For the six months ended June 30, 2018, the Company recorded pretax restructuring charges of $442 million , consisting of severance and related benefit costs of $294 million , asset write-downs and write-offs of $81 million and costs associated with exit and disposal activities of $67 million . The impact of these charges is shown as "Restructuring and asset related charges (credits) - net" in the consolidated statements of income. The Company expects to record additional restructuring charges in 2018 and 2019 and expects the Synergy Program to be completed by the end of 2019. The following table summarizes the activities related to the Synergy Program. At June 30, 2018, $469 million was included in "Accrued and other current liabilities" ( $377 million at December 31, 2017 ) and $148 million was included in "Other noncurrent obligations" ( $133 million at December 31, 2017 ) in the consolidated balance sheets. Synergy Program Severance and Related Benefit Costs Asset Write-downs and Write-offs Costs Associated with Exit and Disposal Activities Total In millions 2017 restructuring charges $ 510 $ 290 $ 74 $ 874 Charges against the reserve — (290 ) — (290 ) Non-cash compensation (7 ) — — (7 ) Cash payments (64 ) — (3 ) (67 ) Reserve balance at Dec 31, 2017 $ 439 $ — $ 71 $ 510 2018 restructuring charges 1 294 81 67 442 Charges against the reserve — (81 ) — (81 ) Cash payments (194 ) — (58 ) (252 ) Net translation adjustment (2 ) — — (2 ) Reserve balance at Jun 30, 2018 $ 537 $ — $ 80 $ 617 1. Included in "Restructuring and asset related charges (credits) - net" in the consolidated statements of income. Restructuring charges recorded for severance and related benefit costs were related to Corporate. The Company recorded restructuring charges of $27 million for costs of associated with exit and disposal activities for the three months ended June 30, 2018 related to Agriculture (charge of $23 million ), Safety & Construction (charge of $9 million ) and Corporate (benefit of $5 million ). Restructuring charges of $67 million for costs associated with exit and disposal activities for the six months ended June 30, 2018 related to Agriculture (charge of $37 million ), Industrial Intermediates & Infrastructure (charge of $11 million ), Packaging & Specialty Plastics (charge of $3 million ), Transportation & Advanced Polymers (benefit of $1 million ), Safety & Construction (charge of $16 million ) and Corporate (charge of $1 million ). The Company recorded restructuring charges for asset write-downs and write-offs for the three months ended June 30, 2018, of $33 million , related to Agriculture ( $14 million ), Electronics & Imaging ( $1 million ), Safety & Construction ( $3 million ) and Corporate ( $15 million ). The Company recorded restructuring charges for asset write-downs and write-offs for the six months ended June 30, 2018, of $81 million , related to Agriculture ( $58 million ), Safety & Construction ( $3 million ), Electronics & Imaging ( $2 million ) and Corporate ( $18 million ). The Company expects to incur additional costs in the future related to its restructuring activities. Future costs are expected to include demolition costs related to closed facilities and restructuring plan implementation costs; these costs will be recognized as incurred. The Company also expects to incur additional employee-related costs, including involuntary termination benefits, related to its other optimization activities. These costs cannot be reasonably estimated at this time. Restructuring Plans Initiated Prior to Merger Dow 2016 Restructuring Plan On June 27, 2016, Dow's Board of Directors approved a restructuring plan that incorporated actions related to the ownership restructure of Dow Silicones. These actions, aligned with Dow's value growth and synergy targets, will result in a global workforce reduction of approximately 2,500 positions, with most of these positions resulting from synergies related to the ownership restructure of Dow Silicones. For the three months ended June 30, 2018, Dow recorded pretax restructuring charges of $7 million , consisting of a favorable adjustment to the severance reserve of $8 million and a charge of $15 million for costs associated with exit and disposal activities. For the six months ended June 30, 2018, Dow recorded pretax restructuring charges of $6 million , consisting of a favorable adjustment to the severance reserve of $8 million and a charge of $14 million for costs associated with exit and disposal activities. The impact of these charges is shown as "Restructuring and asset related charges (credits) - net" in the consolidated statements of income. The 2016 restructuring activities were substantially complete at June 30, 2018, with remaining liabilities for severance and related benefit costs and costs associated with exit and disposal activities to be settled over time. The following table summarizes the activities related to Dow's 2016 restructuring reserve: 2016 Restructuring Severance and Related Benefit Costs Costs Associated with Exit and Disposal Activities Total In millions Reserve balance at Dec 31, 2017 $ 51 $ 17 $ 68 Adjustments to the reserve 1 (8 ) 14 6 Cash payments (37 ) (4 ) (41 ) Reserve balance at Jun 30, 2018 $ 6 $ 27 $ 33 1. Included in "Restructuring and asset related charges (credits) - net" in the consolidated statements of income. The adjustment to severance and related benefit costs was related to Corporate. The adjustments to costs associated with exit and disposal activities were related to Performance Materials & Coatings. |
SUPPLEMENTARY INFORMATION
SUPPLEMENTARY INFORMATION | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUPPLEMENTARY INFORMATION | SUPPLEMENTARY INFORMATION The Company uses "Sundry income (expense) – net" to record a variety of income and expense items such as foreign currency exchange gains and losses, interest income, dividends from investments, gains and losses on sales of investments and assets, non-operating pension and other postretirement benefit plan credits or costs, and certain litigation matters. For the three months ended June 30, 2018 , "Sundry income (expense) - net" was income of $178 million (income of $322 million for the three months ended June 30, 2017 ). For the six months ended June 30, 2018 , "Sundry income (expense) - net" was income of $293 million (expense of $122 million for the six months ended June 30, 2017 ). The following table provides the most significant transactions recorded in "Sundry income (expense) - net" for the three and six months ended June 30, 2018 and 2017: Sundry Income (Expense) - Net Three Months Ended Six Months Ended In millions Jun 30, 2018 Jun 30, 2017 Jun 30, 2018 Jun 30, 2017 Non-operating pension and other postretirement benefit plan net credit 1 $ 113 $ 1 $ 223 $ 2 Interest income $ 51 $ 22 $ 106 $ 47 Gain on sales of other assets and investments 2 $ 35 $ 133 $ 69 $ 137 Adjustment related to Dow Silicones ownership restructure $ (41 ) $ — $ (41 ) $ — Foreign exchange gains (losses), net 3 $ (57 ) $ (30 ) $ (205 ) $ (56 ) Gain related to Nova patent infringement award 4 $ — $ 137 $ — $ 137 Loss related to Dow's Bayer CropScience arbitration matter 4 $ — $ — $ — $ (469 ) 1. Presented in accordance with newly implemented ASU 2017-07. See Notes 1 and 2 for additional information. 2. Includes a $20 million gain in the first quarter of 2018 related to Dow's sale of its equity interest in MEGlobal. 3. Includes a $50 million foreign exchange loss in the first quarter of 2018, related to adjustments to DuPont's foreign currency exchange contracts as a result of U.S. tax reform. 4. See Note 13 for additional information. Accounts and Notes Receivable - Trade “Accounts and notes receivable - Trade” was $15,379 million at June 30, 2018 and $11,314 million at December 31, 2017. Notes receivable, which is a component of “Accounts and notes receivable - Trade," was $1,740 million at June 30, 2018 and $309 million at December 31, 2017. The increase was primarily due to normal seasonality in the sales and cash collections cycle in the Agriculture segment. No other components of “Accounts and notes receivable - Trade” were more than 10 percent of the total of “Accounts and notes receivable - Trade." Cash, Cash Equivalents and Restricted Cash The Company is required to set aside funds for various activities that arise in the normal course of business including, but not limited to, insurance contracts, legal matters and other agreements. These funds typically have legal restrictions associated with them and are deposited in an escrow account or held in a separately identifiable account by the Company. The following table provides a reconciliation of cash, cash equivalents and restricted cash presented in the consolidated balance sheets to the total cash, cash equivalents and restricted cash presented in the consolidated statements of cash flows: Reconciliation of Cash, Cash Equivalents and Restricted Cash Jun 30, 2018 Dec 31, 2017 Jun 30, 2017 In millions Cash and cash equivalents $ 9,244 $ 13,438 $ 6,218 Restricted cash and cash equivalents 1 561 577 15 Total cash, cash equivalents and restricted cash $ 9,805 $ 14,015 $ 6,233 1. Included in "Other current assets" in the consolidated balance sheets. DuPont entered into a trust agreement in 2013 (as amended and restated in 2017), establishing and requiring DuPont to fund a trust (the "Trust") for cash obligations under certain non-qualified benefit and deferred compensation plans upon a change in control event as defined in the Trust agreement. Under the Trust agreement, the consummation of the Merger was a change in control event. At June 30, 2018, $516 million of the restricted cash balance was related to the Trust ( $558 million at December 31, 2017). |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES On December 22, 2017, The Act was enacted. The Act reduces the U.S. federal corporate income tax rate from 35 percent to 21 percent, requires companies to pay a one-time transition tax on earnings of foreign subsidiaries that were previously tax deferred, creates new provisions related to foreign sourced earnings, eliminates the domestic manufacturing deduction and moves towards a territorial system. At June 30, 2018, the Company has not completed its accounting for the tax effects of The Act; however, as described below, the Company has made a reasonable estimate of the effects on its existing deferred tax balances and the one-time transition tax. In accordance with Staff Accounting Bulletin 118, income tax effects of The Act may be refined upon obtaining, preparing, or analyzing additional information during the measurement period and such changes could be material. During the measurement period, provisional amounts may also be adjusted for the effects, if any, of interpretative guidance issued by U.S. regulatory and standard-setting bodies. • As a result of The Act, the Company remeasured its U.S. federal deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21 percent . However, the Company is still analyzing certain aspects of The Act and refining its calculations. In the three and six months ended June 30, 2018, charges of $7 million and $24 million were recorded to “Provision for income taxes on continuing operations" to adjust the provisional amount related to the remeasurement of the Company's deferred tax balance, resulting in a net benefit of $2,642 million since the enactment of The Act. • The Act requires a mandatory deemed repatriation of post-1986 undistributed foreign earnings and profits (“E&P”), which results in a one-time transition tax. The Company has not yet completed its calculation of the total post-1986 foreign E&P for its foreign subsidiaries as E&P will not be finalized until the federal income tax return is filed. The Company has not recorded a change to the $1,580 million provisional charge recorded in the fourth quarter of 2017 with respect to the one-time transition tax. • In the six months ended June 30, 2018, the Company recorded an indirect impact of The Act related to prepaid tax on the intercompany sale of inventory. The amount recorded related to the inventory was a $54 million charge to "Provision for income taxes on continuing operations." • For tax years beginning after December 31, 2017, The Act introduced new provisions for U.S. taxation of certain global intangible low-taxed income (“GILTI”). The Company is evaluating the policy election on whether the additional liability will be recorded in the period in which it is incurred or recognized for the basis differences that would be expected to reverse in future years. Each year the Company files hundreds of tax returns in the various national, state and local income taxing jurisdictions in which it operates. These tax returns are subject to examination and possible challenge by the tax authorities. Positions challenged by the tax authorities may be settled or appealed by the Company. As a result, there is an uncertainty in income taxes recognized in the Company’s financial statements in accordance with accounting for income taxes and accounting for uncertainty in income taxes. The ultimate resolution of such uncertainties is not expected to have a material impact on the Company's results of operations. |
EARNINGS PER SHARE CALCULATIONS
EARNINGS PER SHARE CALCULATIONS | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE CALCULATIONS | EARNINGS PER SHARE CALCULATIONS The following tables provide earnings per share calculations for the three and six months ended June 30, 2018 and 2017 : Net Income for Earnings Per Share Calculations - Basic Three Months Ended Six Months Ended In millions Jun 30, 2018 Jun 30, 2017 1 Jun 30, 2018 Jun 30, 2017 1 Income from continuing operations, net of tax $ 1,803 $ 1,359 $ 2,956 $ 2,274 Net income attributable to noncontrolling interests (35 ) (38 ) (79 ) (65 ) Net income attributable to participating securities 2 (7 ) (6 ) (13 ) (10 ) Income from continuing operations attributable to common stockholders $ 1,761 $ 1,315 $ 2,864 $ 2,199 Loss from discontinued operations, net of tax — — (5 ) — Net income attributable to common stockholders $ 1,761 $ 1,315 $ 2,859 $ 2,199 Earnings Per Share Calculations - Basic Three Months Ended Six Months Ended Jun 30, 2018 Jun 30, 2017 Jun 30, 2018 Jun 30, 2017 Dollars per share Income from continuing operations attributable to common stockholders $ 0.76 $ 1.08 $ 1.24 $ 1.82 Loss from discontinued operations, net of tax — — — — Net income attributable to common stockholders $ 0.76 $ 1.08 $ 1.24 $ 1.82 Net Income for Earnings Per Share Calculations - Diluted Three Months Ended Six Months Ended Jun 30, 2018 Jun 30, 2017 1 Jun 30, 2018 Jun 30, 2017 1 In millions Income from continuing operations, net of tax $ 1,803 $ 1,359 $ 2,956 $ 2,274 Net income attributable to noncontrolling interests (35 ) (38 ) (79 ) (65 ) Net income attributable to participating securities 2 (7 ) (6 ) (13 ) (10 ) Income from continuing operations attributable to common stockholders $ 1,761 $ 1,315 $ 2,864 $ 2,199 Loss from discontinued operations, net of tax — — (5 ) — Net income attributable to common stockholders $ 1,761 $ 1,315 $ 2,859 $ 2,199 Earnings Per Share Calculations - Diluted Three Months Ended Six Months Ended Jun 30, 2018 Jun 30, 2017 Jun 30, 2018 Jun 30, 2017 Dollars per share Income from continuing operations attributable to common stockholders $ 0.76 $ 1.07 $ 1.23 $ 1.79 Loss from discontinued operations, net of tax — — — — Net income attributable to common stockholders $ 0.76 $ 1.07 $ 1.23 $ 1.79 Share Count Information Three Months Ended Six Months Ended Jun 30, 2018 Jun 30, 2017 Jun 30, 2018 Jun 30, 2017 Shares in millions Weighted-average common shares - basic 2,308.9 1,211.8 2,312.9 1,207.2 Plus dilutive effect of equity compensation plans 14.7 17.2 16.1 18.3 Weighted-average common shares - diluted 2,323.6 1,229.0 2,329.0 1,225.5 Stock options and restricted stock units excluded from EPS calculations 3 9.7 2.2 7.5 1.7 1. Prior period amounts have been updated to conform with the current year presentation. 2. Dow restricted stock units (formerly termed deferred stock) are considered participating securities due to Dow's practice of paying dividend equivalents on unvested shares. 3. These outstanding options to purchase shares of common stock and restricted stock units were excluded from the calculation of diluted earnings per share because the effect of including them would have been antidilutive. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES The following table provides a breakdown of inventories: Inventories Jun 30, 2018 Dec 31, 2017 In millions Finished goods $ 9,303 $ 9,701 Work in process 3,542 4,512 Raw materials 1,478 1,267 Supplies 1,176 1,296 Total $ 15,499 $ 16,776 Adjustment of inventories to a LIFO basis 131 216 Total inventories 1 $ 15,630 $ 16,992 1. In the first quarter of 2018, the Company adopted Topic 606, which resulted in a cumulative effect change to the Company's January 1, 2018 inventory balance. See Note 1 for additional information. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The following table reflects the carrying amounts of goodwill by reportable segment: Goodwill Agri-culture Perf. Materials & Coatings Ind. Interm. & Infrast. Pack. & Spec. Plastics Elect. & Imaging Nutrition & Biosciences Transp. & Adv. Polymers Safety & Const. Total In millions Net goodwill at Dec 31, 2017 $ 14,873 $ 3,669 $ 1,101 $ 5,044 $ 8,175 $ 13,200 $ 6,870 $ 6,595 $ 59,527 Measurement period adjustments - Merger 1 6 — — 75 36 34 128 115 394 Measurement period adjustments - H&N Business 1 — — — — — 11 — — 11 Other — 20 — — — (20 ) — — — Foreign currency impact (269 ) (21 ) (3 ) (2 ) (39 ) (120 ) (34 ) (40 ) (528 ) Net goodwill at Jun 30, 2018 $ 14,610 $ 3,668 $ 1,098 $ 5,117 $ 8,172 $ 13,105 $ 6,964 $ 6,670 $ 59,404 1. Final determination of the goodwill value assignment may result in adjustments to the preliminary value recorded. Other Intangible Assets The following table provides information regarding the Company's other intangible assets: Other Intangible Assets Jun 30, 2018 Dec 31, 2017 In millions Gross Carrying Amount Accum Amort Net Gross Carrying Amount Accum Amort Net Intangible assets with finite lives: Developed technology $ 7,751 $ (2,194 ) $ 5,557 $ 7,627 $ (1,834 ) $ 5,793 Software 1,479 (833 ) 646 1,420 (780 ) 640 Trademarks/tradenames 1,775 (664 ) 1,111 1,814 (596 ) 1,218 Customer-related 14,357 (2,499 ) 11,858 14,537 (2,151 ) 12,386 Microbial cell factories 391 (14 ) 377 397 (6 ) 391 Favorable supply contracts 475 (64 ) 411 495 (17 ) 478 Other 1 621 (183 ) 438 703 (166 ) 537 Total other intangible assets with finite lives $ 26,849 $ (6,451 ) $ 20,398 $ 26,993 $ (5,550 ) $ 21,443 Intangible assets with indefinite lives: In-process research and development 680 — 680 710 — 710 Germplasm 2 6,265 — 6,265 6,265 — 6,265 Trademarks/tradenames 4,759 — 4,759 4,856 — 4,856 Total other intangible assets $ 38,553 $ (6,451 ) $ 32,102 $ 38,824 $ (5,550 ) $ 33,274 1. Primarily consists of sales and grower networks, marketing and manufacturing alliances and noncompetition agreements. 2. Germplasm is the pool of genetic source material and body of knowledge gained from the development and delivery stage of plant breeding. The Company recognized germplasm as an intangible asset upon the Merger. This intangible asset is expected to contribute to cash flows beyond the foreseeable future and there are no legal, regulatory, contractual or other factors which limit its useful life. The following table provides information regarding amortization expense related to other intangible assets: Amortization Expense Three Months Ended Six Months Ended In millions Jun 30, 2018 Jun 30, 2017 Jun 30, 2018 Jun 30, 2017 Other intangible assets, excluding software $ 488 $ 157 $ 962 $ 312 Software, included in "Cost of sales" $ 25 $ 20 $ 48 $ 40 Total estimated amortization expense for 2018 and the five succeeding fiscal years is as follows: Estimated Amortization Expense In millions 2018 $ 1,984 2019 $ 1,926 2020 $ 1,879 2021 $ 1,831 2022 $ 1,753 2023 $ 1,715 |
TRANSFERS OF FINANCIAL ASSETS
TRANSFERS OF FINANCIAL ASSETS | 6 Months Ended |
Jun. 30, 2018 | |
Transfers and Servicing [Abstract] | |
TRANSFERS OF FINANCIAL ASSETS | TRANSFERS OF FINANCIAL ASSETS Dow has historically sold trade accounts receivable of select North American entities and qualifying trade accounts receivable of select European entities on a revolving basis to certain multi-seller commercial paper conduit entities ("conduits"). The proceeds received are comprised of cash and interests in specified assets of the conduits (the receivables sold by Dow) that entitle Dow to the residual cash flows of such specified assets in the conduits after the commercial paper has been repaid. Neither the conduits nor the investors in those entities have recourse to other assets of Dow in the event of nonpayment by the debtors. In the fourth quarter of 2017, Dow suspended further sales of trade accounts receivable through these facilities and began reducing outstanding balances through collections of trade accounts receivable previously sold to such conduits. Dow has the ability to resume such sales to the conduits, subject to certain prior notice requirements, at the discretion of Dow. The following table summarizes the carrying value of interests held, which represents Dow's maximum exposure to loss related to the receivables sold, and the percentage of anticipated credit losses related to the trade accounts receivable sold. Also provided is the sensitivity of the fair value of the interests held to hypothetical adverse changes in the anticipated credit losses; amounts shown below are the corresponding hypothetical decreases in the carrying value of interests. Interests Held Jun 30, 2018 Dec 31, 2017 In millions Carrying value of interests held $ 24 $ 677 Percentage of anticipated credit losses 36.81 % 2.64 % Impact to carrying value - 10% adverse change $ — $ — Impact to carrying value - 20% adverse change $ — $ 1 Credit losses, net of any recoveries, on receivables sold were insignificant for the three and six months ended June 30, 2018 and 2017. Following is an analysis of certain cash flows between Dow and the conduits: Cash Proceeds Three Months Ended Six Months Ended In millions Jun 30, 2018 Jun 30, 2017 Jun 30, 2018 Jun 30, 2017 Collections reinvested in revolving receivables $ — $ 6,051 $ — $ 11,732 Interests in conduits 1 $ 211 $ 1,363 $ 656 $ 1,914 1. Presented in "Investing Activities" in the consolidated statements of cash flows in accordance with ASU 2016-15. See Notes 1 and 2 for additional information. In connection with the review and implementation of ASU 2016-15, the Company also changed the prior year value of “Interests in conduits” due to additional interpretive guidance of the required method for calculating the cash received from beneficial interests in the conduits. Following is additional information related to the sale of receivables under these facilities: Trade Accounts Receivable Sold Jun 30, 2018 Dec 31, 2017 In millions Delinquencies on sold receivables still outstanding $ 36 $ 82 Trade accounts receivable outstanding and derecognized $ 36 $ 612 |
NOTES PAYABLE, LONG-TERM DEBT A
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES | NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES A summary of Dow and DuPont's notes payable, long-term debt and available credit facilities can be found in Note 15 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . If applicable, updates have been included in the respective section below. 2018 Activity In the first six months of 2018, Dow redeemed $333 million of 5.7 percent notes at maturity, and an aggregate principal amount of $20 million of International Notes ("InterNotes") at maturity. In addition, approximately $75 million of long-term debt was repaid by consolidated variable interest entities. Dow also called an aggregate principal amount of $125 million tax-exempt bonds of various interest rates and maturities in 2029, 2033 and 2038. As a result of the redemptions, Dow recognized a pretax loss of $1 million on the early extinguishment of debt, included in “Sundry income (expense) - net” in the consolidated statements of income. In May 2018, Dow gave notice to call an additional $218 million of tax-exempt bonds with original maturity dates in 2033, which were repaid on July 16, 2018. 2017 Activity In the first six months of 2017, Dow redeemed $30 million aggregate principal amount of InterNotes at maturity. In addition, approximately $ 60 million of long-term debt was repaid by consolidated variable interest entities. Dow Term Loan Facility In connection with the Dow Silicones ownership restructure on May 31, 2016, Dow Silicones incurred $4.5 billion of indebtedness under a certain third party credit agreement ("Dow Term Loan Facility"). Dow subsequently guaranteed the obligations of Dow Silicones under the Dow Term Loan Facility and, as a result, the covenants and events of default applicable to the Dow Term Loan Facility are substantially similar to the covenants and events of default set forth in Dow's Five Year Competitive Advance and Revolving Credit Facility. In the second quarter of 2018, Dow Silicones exercised a 19 -month extension option making amounts borrowed under the Dow Term Loan Facility repayable on December 30, 2019. In addition, Dow Silicones amended the Dow Term Loan Facility to include an additional 2-year extension option, at Dow Silicones' election, upon satisfaction of certain customary conditions precedent. DuPont Term Loan and Revolving Credit Facilities In March 2016, DuPont entered into a credit agreement that provides for a three -year, senior unsecured term loan facility in the aggregate principal amount of $4.5 billion (as may be amended, from time to time, the "Term Loan Facility") under which DuPont may make up to seven term loan borrowings and amounts repaid or prepaid are not available for subsequent borrowings. The proceeds from the borrowings under the Term Loan Facility will be used for DuPont's general corporate purposes including debt repayment, working capital and funding a portion of the Company's costs and expenses. The Term Loan Facility was amended in 2018 to extend the maturity date to June 2020, at which time all outstanding borrowings, including accrued but unpaid interest, become immediately due and payable, and to extend the date on which the commitment to lend terminates to June 2019. At June 30, 2018, DuPont had made three term loan borrowings in an aggregate principal amount of $1.5 billion and had unused commitments of $3.0 billion under the Term Loan Facility. In addition, in 2018 DuPont amended its $3.0 billion revolving credit facility to extend the maturity date to June 2020. DuPont Repurchase Facility In February 2018, DuPont entered into a new committed receivable repurchase facility of up to $1,300 million (the "2018 Repurchase Facility") which expires in December 2018. Under the 2018 Repurchase Facility, DuPont may sell a portfolio of available and eligible outstanding customer notes receivables within the Agriculture segment to participating institutions and simultaneously agree to repurchase at a future date. The 2018 Repurchase Facility is considered a secured borrowing with the customer notes receivable inclusive of those that are sold and repurchased, equal to 105 percent of the outstanding amounts borrowed utilized as collateral. Borrowings under the 2018 Repurchase Facility have an interest rate of LIBOR plus 0.75 percent. At June 30, 2018, $1,208 million of notes receivable, recorded in "Accounts and notes receivable - Trade," were pledged as collateral against outstanding borrowings under the 2018 Repurchase Facility of $1,150 million , recorded in "Notes payable" on the consolidated balance sheets. Debt Covenants and Default Provisions There were no material changes to the debt covenants and default provisions related to the Subsidiaries' outstanding long-term debt and primary, private credit agreements in the first six months of 2018. For additional information on the Subsidiaries' debt covenants and default provisions, see Note 15 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES Litigation Asbestos-Related Matters of Union Carbide Corporation A summary of Asbestos-Related Matters of Union Carbide Corporation can be found in Note 16 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 . Introduction Union Carbide 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 Union Carbide sold in the past, alleged exposure to asbestos-containing products located on Union Carbide’s premises, and Union Carbide’s responsibility for asbestos suits filed against a former Union Carbide 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 Union Carbide’s products. Union Carbide expects more asbestos-related suits to be filed against Union Carbide and Amchem in the future, and will aggressively defend or reasonably resolve, as appropriate, both pending and future claims. Estimating the Asbestos-Related Liability Since 2003, Union Carbide has engaged Ankura Consulting Group, LLC ("Ankura"), a third party actuarial specialist, to review Union Carbide's historical asbestos-related claim and resolution activity in order to assist Union Carbide's management in estimating the asbestos-related liability. Each year, Ankura has reviewed the claim and resolution activity to determine the appropriateness of updating the most recent Ankura study. Based on the December 2017 Ankura review, and Union Carbide's own review of the data, Union Carbide's total asbestos-related liability through the terminal year of 2049, including asbestos-related defense and processing costs, was $1,369 million at December 31, 2017 , and included in “Accrued and other current liabilities” and “Asbestos-related liabilities - noncurrent” in the consolidated balance sheets. Each quarter, Union Carbide reviews claims filed, settled and dismissed, as well as average settlement and resolution costs by disease category. Union Carbide also considers additional quantitative and qualitative factors such as the nature of pending claims, trial experience of Union Carbide and other asbestos defendants, current spending for defense and processing costs, significant appellate rulings and legislative developments, trends in the tort system, and their respective effects on expected future resolution costs. Union Carbide's management considers all these factors in conjunction with the most recent Ankura study and determines whether a change in the estimate is warranted. Based on Union Carbide's review of 2018 activity, it was determined that no adjustment to the accrual was required at June 30, 2018 . Union Carbide's asbestos related liability for pending and future claims and defense and processing costs was $1,310 million at June 30, 2018 . Approximately 16 percent of the recorded liability related to pending claims and approximately 84 percent related to future claims. Summary The Company's management believes the amounts recorded by Union Carbide for the asbestos-related liability (including defense and processing costs) reflect reasonable and probable estimates of the liability based upon current, known facts. However, future events, such as the number of new claims to be filed and/or received each year and 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 Union Carbide to be higher or lower than those projected or those recorded. Any such events could result in an increase or decrease in the recorded liability. Because of the uncertainties described above, Union Carbide cannot estimate the full range of the cost of resolving pending and future asbestos-related claims facing Union Carbide and Amchem. As a result, it is reasonably possible that an additional cost of disposing of Union Carbide's asbestos-related claims, including future defense and processing costs, could have a material impact on the Company's results of operations and cash flows for a particular period and on the consolidated financial position. Bayer CropScience v. Dow AgroSciences ICC Arbitration A summary of the Bayer CropScience v. Dow AgroSciences ICC Arbitration can be found in Note 16 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. On August 13, 2012, Bayer CropScience AG and Bayer CropScience NV (together, “Bayer”) filed a request for arbitration with the International Chamber of Commerce ("ICC") International Court of Arbitration against Dow AgroSciences LLC, a wholly owned subsidiary of Dow, and other subsidiaries of Dow (collectively, “DAS”) under a 1992 license agreement executed by predecessors of the parties (the “License Agreement”). In its request for arbitration, Bayer alleged that (i) DAS breached the License Agreement, (ii) the License Agreement was properly terminated with no ongoing rights to DAS, (iii) DAS infringed its patent rights related to the use of the pat gene in certain soybean and cotton seed products, and (iv) Bayer was entitled to monetary damages and injunctive relief. DAS denied that it breached the License Agreement and asserted that the License Agreement remained in effect because it was not properly terminated. DAS also asserted that all of Bayer’s patents at issue are invalid and/or not infringed, and, therefore, for these reasons (and others), a license was not required. A three -member arbitration tribunal presided over the arbitration proceeding (the “tribunal”). In a decision dated October 9, 2015, the tribunal determined that (i) DAS breached the License Agreement, (ii) Bayer properly terminated the License Agreement, (iii) all of the patents remaining in the proceeding are valid and infringed, and (iv) that Bayer is entitled to monetary damages in the amount of $455 million inclusive of pre-judgment interest and costs (the “arbitral award”). One of the arbitrators, however, issued a partial dissent finding that all of the patents are invalid based on the double-patenting doctrine. The tribunal also denied Bayer’s request for injunctive relief. On March 1, 2017, the U.S. Court of Appeals for the Federal Circuit affirmed the arbitral award. As a result of this action, in the first quarter of 2017, DAS recorded a loss of $469 million , inclusive of the arbitral award and post-judgment interest, which was included in "Sundry income (expense) - net" in the consolidated statements of income and related to the Agriculture segment. On May 26, 2017, DAS paid the $469 million arbitral award to Bayer as a result of that decision. On September 11, 2017, DAS filed a petition for writ of certiorari with the United States Supreme Court to review the case, but the Court denied DAS’s petition. The litigation is now concluded with no risk of further liability. Rocky Flats Matter A summary of the Rocky Flats Matter can be found in Note 16 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. Dow and Rockwell International Corporation ("Rockwell") (collectively, the "defendants") were defendants in a class action lawsuit filed in 1990 on behalf of property owners ("plaintiffs") in Rocky Flats, Colorado, who asserted claims for nuisance and trespass based on alleged property damage caused by plutonium releases from a nuclear weapons facility owned by the U.S. Department of Energy ("DOE") but operated by Dow and Rockwell. The plaintiffs tried their case as a public liability action under the Price Anderson Act ("PAA"). Dow and Rockwell litigated this matter in the U.S. District Court for the District of Colorado, the U.S. Tenth Circuit Court of Appeals and then filed a petition for writ of certiorari in the United States Supreme Court. On May 18, 2016, Dow, Rockwell and the plaintiffs entered into a settlement agreement for $375 million , of which $131 million was paid by Dow. The DOE authorized the settlement pursuant to the PAA and the nuclear hazards indemnity provisions contained in Dow's and Rockwell's contracts. On April 28, 2017, the District Court conducted a fairness hearing and granted final judgment approving the class settlement and dismissed class claims against the defendants ("final judgment order"). On December 13, 2016, the United States Civil Board of Contract Appeals unanimously ordered the United States government to pay the amounts stipulated in the Settlement Agreement. On January 17, 2017, Dow received a full indemnity payment of $131 million from the United States government for Dow's share of the class settlement. On January 26, 2017, Dow placed $130 million in an escrow account for the settlement payment owed to the plaintiffs. The funds were subsequently released from escrow as a result of the final judgment order. The litigation is now concluded. Dow Silicones Chapter 11 Related Matters A summary of the Dow Silicones Chapter 11 Related Matters can be found in Note 16 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. Introduction In 1995, Dow Silicones, then a 50 :50 joint venture between Dow and Corning Incorporated ("Corning"), voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code in order to resolve Dow Silicones' breast implant liabilities and related matters (the “Chapter 11 Proceeding”). Dow Silicones emerged from the Chapter 11 Proceeding on June 1, 2004 (the “Effective Date”) and is implementing the Joint Plan of Reorganization (the “Plan”). The Plan provides funding for the resolution of breast implant and other product liability litigation covered by the Chapter 11 Proceeding and provides a process for the satisfaction of commercial creditor claims in the Chapter 11 Proceeding. As of June 1, 2016, Dow Silicones is a wholly owned subsidiary of Dow. Breast Implant and Other Product Liability Claims Under the Plan, a product liability settlement program administered by an independent claims office (the “Settlement Facility”) was created to resolve breast implant and other product liability claims. Product liability claimants rejecting the settlement program in favor of pursuing litigation must bring suit against a litigation facility (the “Litigation Facility”). Dow Silicones has an obligation to fund the Settlement Facility and the Litigation Facility over a 16 -year period, commencing at the Effective Date. At June 30, 2018 , Dow Silicones and its insurers have made life-to-date payments of $1,762 million to the Settlement Facility and the Settlement Facility reported an unexpended balance of $126 million . Dow Silicones' liability for breast implant and other product liability claims ("Implant Liability") was $263 million at June 30, 2018 ( $263 million at December 31, 2017 ), which was included in "Other noncurrent obligations" in the consolidated balance sheets. Dow Silicones is not aware of circumstances that would change the factors used in estimating the Implant Liability and believes the recorded liability reflects the best estimate of the remaining funding obligations under the Plan; however, the estimate relies upon a number of significant assumptions, including: future claim filing levels in the Settlement Facility will be similar to those in a prior settlement program, which management uses to estimate future claim filing levels for the Settlement Facility; future acceptance rates, disease mix, and payment values will be materially consistent with historical experience; no material negative outcomes in future controversies or disputes over Plan interpretation will occur; and the Plan will not be modified. If actual outcomes related to any of these assumptions prove to be materially different, the future liability to fund the Plan may be materially different than the amount estimated. If Dow Silicones was ultimately required to fund the full liability up to the maximum capped value, the liability would be $2,047 million at June 30, 2018 . Commercial Creditor Issues The Plan provides that each of Dow Silicones' commercial creditors (the “Commercial Creditors”) would receive in cash the sum of (a) an amount equal to the principal amount of their claims and (b) interest on such claims. The actual amount of interest that will ultimately be paid to these Commercial Creditors is uncertain due to pending litigation between Dow Silicones and the Commercial Creditors regarding the appropriate interest rates to be applied to outstanding obligations from the 1995 bankruptcy filing date through the Effective Date, as well as the presence of any recoverable fees, costs, and expenses. Upon the Plan becoming effective, Dow Silicones paid approximately $1,500 million to the Commercial Creditors, representing principal and an amount of interest that Dow Silicones considers undisputed. On May 10, 2017, the U.S. District Court for the Eastern District of Michigan entered a stipulated order resolving pending discovery motions and established a discovery schedule for the Commercial Creditors matter. As a result, Dow Silicones and its third party consultants conducted further analysis of the Commercial Creditors claims and defenses. This analysis indicated the estimated remaining liability to Commercial Creditors to be within a range of $77 million to $260 million . No single amount within the range appears to be a better estimate than any other amount within the range. Therefore, Dow Silicones recorded the minimum liability within the range, which resulted in a decrease to the Commercial Creditor liability of $33 million in the second quarter of 2017, which was included in "Sundry income (expense) - net" in the consolidated statements of income. At June 30, 2018 , the liability related to Dow Silicones' potential obligation to pay additional interest to its Commercial Creditors in the Chapter 11 Proceeding was $80 million and is included in "Accrued and other current liabilities" in the consolidated balance sheets ( $78 million at December 31, 2017 ). The actual amount of interest that will be paid to these creditors is uncertain and will ultimately be resolved through continued proceedings in the District Court. Indemnifications In connection with the June 1, 2016 ownership restructure of Dow Silicones, Dow is indemnified by Corning for 50 percent of future losses associated with certain pre-closing liabilities, including the Implant Liability and Commercial Creditors matters described above, subject to certain conditions and limits. The maximum amount of indemnified losses which may be recovered are subject to a cap that declines over time. No indemnification assets were recorded at June 30, 2018 or December 31, 2017 . Summary The amounts recorded by Dow Silicones for the Chapter 11 related matters described above were based upon current, known facts, which management believes reflect reasonable and probable estimates of the liability. However, future events could cause the actual costs for Dow Silicones to be higher or lower than those projected or those recorded. Any such events could result in an increase or decrease in the recorded liability. Separation of DuPont's Performance Chemicals Segment On July 1, 2015, DuPont completed the separation of its Performance Chemicals segment through the spin-off of all of the issued and outstanding stock of The Chemours Company (the "Separation"). In connection with the Separation, DuPont and The Chemours Company (“Chemours”) entered into a Separation agreement (the "Separation Agreement"). Pursuant to the Separation Agreement and the amendment to the Separation Agreement, Chemours indemnifies DuPont against certain litigation, environmental, workers' compensation and other liabilities that arose prior to the Separation. The term of this indemnification is generally indefinite and includes defense costs and expenses, as well as monetary and non-monetary settlements and judgments. In connection with the recognition of liabilities related to these matters, DuPont records an indemnification asset when recovery is deemed probable. At June 30, 2018 , the indemnification assets were $87 million included in "Accounts and notes receivable - Other" and $324 million included in "Noncurrent receivables" along with the corresponding liabilities of $87 million recorded in "Accrued and other current liabilities" and $324 million included in "Other noncurrent obligations" in the consolidated balance sheets. PFOA Matters DuPont used PFOA (collectively, perfluorooctanoic acids and its salts, including the ammonium salt), as a processing aid to manufacture some fluoropolymer resins at various sites around the world including its Washington Works' plant in West Virginia. Pursuant to the Separation Agreement discussed above, DuPont is indemnified by Chemours for the PFOA matters discussed below and has recorded a total indemnification asset of $16 million . U.S. Environmental Protection Agency (“EPA") and New Jersey Department of Environmental Protection (“NJDEP”) DuPont is obligated under agreements with the EPA, including a 2009 consent decree to which Chemours was added in 2017, and has made voluntary commitments to the NJDEP. These obligations and voluntary commitments include surveying, sampling and testing drinking water in and around certain DuPont sites and offering treatment or an alternative supply of drinking water if tests indicate the presence of PFOA in drinking water at or greater than the national health advisory level established from time to time by the EPA. At June 30, 2018 , DuPont had an accrual of $16 million related to these obligations and voluntary commitments. DuPont recorded an indemnification asset corresponding to the accrual balance at June 30, 2018 . Leach v. DuPont In August 2001, a class action, captioned Leach v. DuPont, was filed in West Virginia state court alleging that residents living near the Washington Works facility had suffered, or may suffer, deleterious health effects from exposure to PFOA in drinking water. A settlement was reached in 2004 that binds approximately 80,000 residents, (the "Leach Settlement"). In addition to paying $23 million to plaintiff’s attorneys for fees and expenses and $70 million to fund a community health project, DuPont is obligated to fund up to $235 million for a medical monitoring program for eligible class members and to pay administrative costs and fees associated with the program. Since the establishment in 2012 of an escrow account to fund medical monitoring as required by the settlement agreement, approximately $2 million has been contributed to the account and approximately $1 million has been disbursed from the account. DuPont also must continue to provide water treatment designed to reduce the level of PFOA in water to six area water districts, including the Little Hocking Water Association, and private well users. While it is probable that DuPont will incur liabilities related to funding the medical monitoring program and providing water treatment, DuPont does not expect any such liabilities to be material. Under the Leach Settlement, DuPont funded a series of health studies which were completed in October 2012 by an independent science panel of experts (the "C8 Science Panel"). The C8 Science Panel found probable links, as defined in the Leach Settlement, between exposure to PFOA and pregnancy-induced hypertension, including preeclampsia; kidney cancer; testicular cancer; thyroid disease; ulcerative colitis; and diagnosed high cholesterol. Leach class members may pursue personal injury claims against DuPont only for the six human diseases for which the C8 Science Panel determined a probable link exists. Following the Leach Settlement, approximately 3,550 lawsuits alleging personal injury claims were filed in various federal and state courts in Ohio and West Virginia. These lawsuits were consolidated in multi-district litigation ("MDL") in the U.S. District Court for the Southern District of Ohio. MDL Settlement In the first quarter of 2017, the MDL was settled for $671 million in cash (the "MDL Settlement"), half of which was paid by Chemours and half paid by DuPont. At December 31, 2017, all payments under the settlement agreement were made by both companies. DuPont’s payment was not subject to indemnification or reimbursement by Chemours. In exchange for that payment, DuPont and Chemours are receiving releases of all claims by the settling plaintiffs. The MDL Settlement was entered into solely by way of compromise and settlement and is not in any way an admission of liability or fault by DuPont or Chemours. All of the MDL plaintiffs participated and resolved their claims within the MDL Settlement. Post MDL Settlement PFOA Personal Injury Claims The MDL Settlement did not resolve claims of plaintiffs who did not have claims in the MDL or whose claims are based on diseases first diagnosed after February 11, 2017. At June 30, 2018 , about 35 lawsuits alleging personal injury, including kidney and testicular cancer, from exposure to PFOA in drinking water had been filed against DuPont in West Virginia and Ohio. In addition, three lawsuits are pending in federal court in New York on behalf of five individuals who are residents of Hoosick Falls, New York. The plaintiffs claim personal injuries, including kidney cancer, thyroid disease and ulcerative colitis, from alleged exposure to PFOA discharged into the air and water from nearby manufacturing facilities owned and operated by defendant third parties. Plaintiffs claim that PFOA used at the facilities was purchased from or manufactured by DuPont and co-defendant, 3M Company. Water Utility and Related Actions Actions filed by local water utilities pending in Alabama state and New Jersey federal court allege contamination from PFOA, and in the case of the Alabama action, perfluorinated chemicals and compounds, including PFOA (“PFCs”), used in co-defendant manufacturers’ operations. In February 2018, the State of Ohio filed an action in Ohio state court alleging natural resource damages from historical PFOA emissions from the Washington Works site. The plaintiffs in these actions seek monetary damages, remediation and other costs / damages. While it is reasonably possible that DuPont could incur liabilities related to the post MDL Settlement PFOA personal injury claims and the water utility and related actions described above, any such liabilities are not expected to be material. Chemours is defending and indemnifying DuPont in these matters in accordance with the amendment to the Separation Agreement discussed below. Amendment to Separation Agreement Concurrent with the MDL Settlement, DuPont and Chemours amended the Separation Agreement to provide for a limited sharing of potential future PFOA liabilities (i.e., indemnifiable losses, as defined in the Separation Agreement) for a period of five years beginning July 6, 2017. During that five -year period, Chemours will annually pay future PFOA liabilities up to $25 million and, if such amount is exceeded, DuPont would pay any excess amount up to the next $25 million (which payment will not be subject to indemnification by Chemours), with Chemours annually bearing any further excess liabilities. After the five -year period, this limited sharing agreement will expire, and Chemours’ indemnification obligations under the Separation Agreement will continue unchanged. There have been no charges incurred by DuPont under this arrangement through June 30, 2018 . Chemours has also agreed that it will not contest its liability to DuPont under the Separation Agreement for PFOA liabilities on the basis of ostensible defenses generally applicable to the indemnification provisions under the Separation Agreement, including defenses relating to punitive damages, fines or penalties or attorneys’ fees, and waives any such defenses with respect to PFOA liabilities. Chemours has, however, retained defenses as to whether any particular PFOA claim is within the scope of the indemnification provisions of the Separation Agreement. It is possible that new lawsuits could be filed against DuPont related to PFOA that may not be within the scope of the MDL Settlement. Any such new litigation would be subject to indemnification by Chemours under the Separation Agreement, as amended. DuPont Matters: Fayetteville Works Facility, North Carolina Prior to the Separation of Chemours, DuPont introduced GenX as a polymerization processing aid and a replacement for PFOA at the Fayetteville Works facility. The facility is now owned and operated by Chemours which continues to manufacture and use GenX. Chemours is responding to ongoing inquiries and investigations from federal, state and local investigators, regulators and other governmental authorities as well as inquiries from the media and local community stakeholders. These inquiries and investigations involve the discharge of GenX and certain similar compounds from the Chemours’ facility at Fayetteville Works into the Cape Fear River in Bladen County, North Carolina. In August 2017, the U.S. Attorney’s Office for the Eastern District of North Carolina served DuPont with a grand jury subpoena for testimony and the production of documents related to alleged discharges of GenX from the Fayetteville Works facility into the Cape Fear River. DuPont has been served with additional subpoenas relating to the same issue and in the second quarter of 2018, received a subpoena expanding the scope to any PFCs discharged from the Fayetteville Works facility into the Cape Fear River. It is possible that these ongoing inquiries and investigations, including the grand jury subpoena, could result in penalties or sanctions, or that additional litigation will be instituted against Chemours and/or DuPont. At June 30, 2018 , several actions are pending in federal court against Chemours and DuPont. These actions have been consolidated into a single purported class action, on behalf of putative classes of property owners and residents in areas near or who draw drinking water from the Cape Fear River. These actions relate to the alleged discharge of certain PFCs into the river from the operations and wastewater treatment at the Fayetteville Works facility and seek various relief including medical monitoring, property damages and injunctive relief. Separate actions filed by the various North Carolina water authorities including Cape Fear Public Utility Authority and Brunswick County, North Carolina, have been consolidated into one action for purposes of litigation and seek actual and punitive damages as well as injunctive relief. In addition, an action remains pending in North Carolina state court on behalf of about 100 plaintiffs who own property near the Fayetteville Works facility. The plaintiffs seek damages for nuisance allegedly caused by releases of certain PFCs from the site. Management believes the probability of loss with respect to these actions is remote. DuPont has an indemnification claim against Chemours with respect to current and future inquiries and claims, including lawsuits, related to the foregoing. At June 30, 2018 , Chemours is defending and indemnifying DuPont in the pending civil actions. Other Litigation Matters In addition to the specific matters described above, Dow and DuPont are parties to a number of other claims and lawsuits arising out of the normal course of business with respect to product liability, patent infringement, governmental regulation, contract and commercial litigation, and other actions. Certain of these actions purport to be class actions and seek damages in very large amounts. All such claims are being contested. Dow and DuPont have active risk management programs consisting of numerous insurance policies secured from many carriers at various times. These policies may provide coverage that could be utilized to minimize the financial impact, if any, of certain contingencies described above. It is the opinion of the Company’s management 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, financial condition and cash flows of the Company. Gain Contingency - Dow v. Nova Chemicals Corporation Patent Infringement Matter A summary of the Dow v. Nova Chemicals Corporation Patent Infringement Matter can be found in Note 16 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. On December 9, 2010, Dow filed suit in the Federal Court in Ontario, Canada ("Federal Court") alleging that Nova Chemicals Corporation ("Nova") was infringing Dow's Canadian polyethylene patent 2,106,705. Nova counterclaimed on the grounds of invalidity and non-infringement. On June 29, 2017, the Federal Court issued a Confidential Supplemental Judgment, concluding that Nova must pay $645 million Canadian dollars (equivalent to $495 million U.S. dollars) to Dow, plus pre- and post-judgment interest, for which Dow received payment of $501 million from Nova on July 6, 2017. Although Nova is appealing portions of the damages judgment, certain portions of it are indisputable and will be owed to Dow regardless of the outcome of any further appeals by Nova. As a result of these actions and in accordance with ASC 450-30 "Gain Contingencies ," Dow recorded a $160 million pretax gain in the second quarter of 2017, related to the Packaging & Specialty Plastics segment, of which $137 million was included in "Sundry income (expense) - net" and $23 million was included in "Selling, general and administrative expenses" in the consolidated statements of income. At June 30, 2018 , Dow had $341 million ( $341 million at December 31, 2017 ) included in "Other noncurrent obligations" related to the disputed portion of the damages judgment. Dow is confident of its chances of defending the entire judgment on appeal, particularly the trial court's determinations on important factual issues, which will be accorded deferential review on appeal. Environmental Matters Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated based on current law and existing technologies. At June 30, 2018 , the Company had accrued obligations of $1,260 million for probable environmental remediation and restoration costs, including $203 million for the remediation of Superfund sites. These obligations are included in "Accrued and other current liabilities" and "Other noncurrent obligations" in the consolidated balance sheets. This is management’s best estimate of the costs for remediation and restoration with respect to environmental matters for which the Company has accrued liabilities, although it is reasonably possible that the ultimate cost with respect to these particular matters could range up to two and a half times that amount. Consequently, it is reasonably possible that environmental remediation and restoration costs in excess of amounts accrued could have a material impact on the Company’s results of operations, financial condition and cash flows. It is the opinion of the Company’s management, however, that the possibility is remote that costs in excess of the range disclosed will have a material impact on the Company’s results of operations, financial condition or cash flows. Inherent uncertainties exist in these estimates primarily due to unknown conditions, changing governmental regulations and legal standards regarding liability, and emerging remediation technologies for handling site remediation and restoration. At December 31, 2017 , the Company had accrued obligations of $1,311 million for probable environmental remediation and restoration costs, including $219 million for the remediation of Superfund sites. Pursuant to the DuPont and Chemours Separation Agreement, DuPont is indemnified by Chemours for certain environmental matters, included in the liability of $1,260 million , that have an estimated liability of $236 million at June 30, 2018 , and a potential exposure that ranges up to approximatel |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | The following table summarizes the activity related to each component of accumulated other comprehensive loss ("AOCL") for the six months ended June 30, 2018 and 2017 : Accumulated Other Comprehensive Loss 1 Unrealized Gains (Losses) on Investments Cumulative Translation Adj Pension and Other Postretire Benefits Derivative Instruments Total Accum Other Comp Loss In millions Balance at Jan 1, 2017 $ 43 $ (2,381 ) $ (7,389 ) $ (95 ) $ (9,822 ) Other comprehensive income (loss) before reclassifications 38 632 — (73 ) 597 Amounts reclassified from accumulated other comprehensive income (loss) (30 ) (6 ) 203 (16 ) 151 Net other comprehensive income (loss) $ 8 $ 626 $ 203 $ (89 ) $ 748 Balance at Jun 30, 2017 $ 51 $ (1,755 ) $ (7,186 ) $ (184 ) $ (9,074 ) Balance at Jan 1, 2018 2 $ 17 $ (1,935 ) $ (6,923 ) $ (111 ) $ (8,952 ) Other comprehensive income (loss) before reclassifications (41 ) (1,058 ) 9 75 (1,015 ) Amounts reclassified from accumulated other comprehensive income (loss) 2 (2 ) 248 44 292 Net other comprehensive income (loss) $ (39 ) $ (1,060 ) $ 257 $ 119 $ (723 ) Reclassification of stranded tax effects 3 $ (1 ) $ (107 ) $ (927 ) $ (22 ) $ (1,057 ) Balance at Jun 30, 2018 $ (23 ) $ (3,102 ) $ (7,593 ) $ (14 ) $ (10,732 ) 1. Prior period amounts have been updated to conform with the current period presentation. 2. The beginning balance of "Unrealized gains (losses) on investments" was increased by $20 million to reflect the impact of the adoption of ASU 2016-01. See Notes 1 and 2 for additional information. 3. Amounts reclassified to retained earnings as a result of the adoption of ASU 2018-02. See Notes 1 and 2 for additional information. The tax effects on the net activity related to each component of other comprehensive income (loss) for the three and six months ended June 30, 2018 and 2017 were as follows: Tax Benefit (Expense) Three Months Ended Six Months Ended In millions Jun 30, 2018 Jun 30, 2017 Jun 30, 2018 Jun 30, 2017 Unrealized gains (losses) on investments $ (3 ) $ (4 ) $ (9 ) $ 4 Cumulative translation adjustments 25 8 20 26 Pension and other postretirement benefit plans 34 48 60 95 Derivative instruments 17 (7 ) 10 (21 ) Tax benefit from income taxes related to other comprehensive income items $ 73 $ 45 $ 81 $ 104 A summary of the reclassifications out of AOCL for the three and six months ended June 30, 2018 and 2017 is provided as follows: Reclassifications Out of Accumulated Other Comprehensive Loss Three Months Ended Six Months Ended Consolidated Statements of Income Classification In millions Jun 30, 2018 Jun 30, 2017 Jun 30, 2018 Jun 30, 2017 Unrealized gains (losses) on investments $ 1 $ (35 ) $ 3 $ (47 ) See (1) below Tax expense (benefit) — 13 (1 ) 17 See (2) below After tax $ 1 $ (22 ) $ 2 $ (30 ) Cumulative translation adjustments $ (2 ) $ (6 ) $ (2 ) $ (6 ) See (3) below Pension and other postretirement benefit plans $ 156 $ 149 $ 310 $ 298 See (4) below Tax benefit (34 ) (48 ) (62 ) (95 ) See (2) below After tax $ 122 $ 101 $ 248 $ 203 Derivative Instruments $ 26 $ (8 ) $ 52 $ (15 ) See (5) below Tax benefit (3 ) — (8 ) (1 ) See (2) below After tax $ 23 $ (8 ) $ 44 $ (16 ) Total reclassifications for the period, after tax $ 144 $ 65 $ 292 $ 151 1. "Net sales" and "Sundry income (expense) - net." 2. "Provision for income taxes on continuing operations." 3. "Sundry income (expense) - net." 4. These AOCL components are included in the computation of net periodic benefit cost of the Company's defined benefit pension and other postretirement benefit plans. See Note 16 for additional information. 5. "Cost of sales," "Sundry income (expense) - net" and "Interest expense and amortization of debt discount." |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 6 Months Ended |
Jun. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
NONCONTROLLING INTERESTS | NONCONTROLLING INTERESTS Ownership interests in the Company's subsidiaries held by parties other than the Company are presented separately from the Company's equity in the consolidated balance sheets as "Noncontrolling interests." The amount of consolidated net income attributable to the Company and the noncontrolling interests are both presented on the face of the consolidated statements of income. The following table summarizes the activity for equity attributable to noncontrolling interests for the three and six months ended June 30, 2018 and 2017 : Noncontrolling Interests Three Months Ended Six Months Ended In millions Jun 30, Jun 30, Jun 30, Jun 30, Balance at beginning of period $ 1,664 $ 1,274 $ 1,597 $ 1,242 Net income attributable to noncontrolling interests 35 38 79 65 Distributions to noncontrolling interests 1 (46 ) (27 ) (73 ) (48 ) Noncontrolling interests from Merger 2 — — 56 — Deconsolidation of noncontrolling interests 3 — (119 ) — (119 ) Cumulative translation adjustments (34 ) 3 (40 ) 28 Other 1 (1 ) 1 — Balance at end of period $ 1,620 $ 1,168 $ 1,620 $ 1,168 1. Net of dividends paid to a joint venture, which were reclassified to "Equity in earnings of nonconsolidated affiliates" in the consolidated statements of income, totaled $6 million for the three months ended June 30, 2018 ( $3 million for the three months ended June 30, 2017 ) and $6 million for the six months ended June 30, 2018 ( $3 million for the six months ended June 30, 2017 ). 2. Reflects a measurement period adjustment. See Note 3 for additional information. 3. On June 30, 2017, Dow sold its ownership interest in SKC Haas Display Films group of companies. |
PENSION PLANS AND OTHER POSTRET
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS Dow and DuPont did not merge their defined benefit pension and other postretirement benefit plans as a result of the Merger. The following table provides the components of net periodic benefit cost for Dow and DuPont's significant plans: Net Periodic Benefit Cost for All Significant Plans Three Months Ended Six Months Ended In millions Jun 30, 2018 Jun 30, 2017 Jun 30, 2018 Jun 30, 2017 Defined Benefit Pension Plans: Service cost $ 165 $ 126 $ 332 $ 251 Interest cost 406 220 814 439 Expected return on plan assets (705 ) (385 ) (1,414 ) (768 ) Amortization of prior service credit (6 ) (6 ) (12 ) (12 ) Amortization of net loss 169 158 340 315 Curtailment/settlement 1 (4 ) (6 ) (4 ) (6 ) Net periodic benefit cost $ 25 $ 107 $ 56 $ 219 Other Postretirement Benefits: Service cost $ 5 $ 3 $ 10 $ 6 Interest cost 33 13 65 27 Amortization of net gain (6 ) (1 ) (12 ) (3 ) Net periodic benefit cost $ 32 $ 15 $ 63 $ 30 1. The 2018 impact relates to the curtailment and settlement of pension plans in the U.S. and Australia. The 2017 impact relates to the curtailment and settlement of a pension plan in Korea. On January 1, 2018, the Company adopted ASU 2017-07, which impacted the presentation of the components of net periodic benefit cost in the consolidated statements of income. Net periodic benefit cost, other than the service cost component, is retrospectively included in "Sundry income (expense) - net" in the consolidated statements of income. See Notes 1 , 2 and 6 for additional information. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION A summary of Dow and DuPont's stock-based compensation plans can be found in Note 20 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Dow and DuPont did not merge their equity incentive plans as a result of the Merger. The Dow and DuPont stock-based compensation plans were assumed by DowDuPont and continue in place with the ability to grant and issue DowDuPont common stock. Dow Stock Incentive Plan Dow grants stock-based compensation to employees and non-employee directors under The Dow Chemical Company Amended and Restated 2012 Stock Incentive Plan (the "2012 Plan"). Effective with the Merger, on August 31, 2017, all outstanding Dow stock options and deferred stock awards were converted into stock options and deferred stock awards with respect to DowDuPont Common Stock. The stock options and deferred stock awards have the same terms and conditions under the applicable plans and award agreements prior to the Merger. Most of Dow's stock-based compensation awards are granted in the first quarter of each year. There was minimal grant activity in the second quarter of 2018 . In the first quarter of 2018 , Dow granted the following stock-based compensation awards to employees under the 2012 Plan: • 6.3 million stock options with a weighted-average exercise price of $71.85 per share and a weighted-average fair value of $15.46 per share; and • 1.9 million restricted stock units ("RSUs") (formerly termed deferred stock) with a weighted-average fair value of $71.83 per share. Effective with the first quarter of 2018 grant, Dow began using the Black-Scholes option valuation model to estimate the fair value of stock options. This valuation methodology was adopted as a result of the Merger to align valuation methodologies with DuPont and better align with industry practice. DuPont Equity Incentive Plan DuPont grants stock-based compensation to certain employees, directors, and consultants through grants of stock options, time-vested RSUs, and performance-based restricted stock units (“PSUs”) under the DuPont Equity Incentive Plan ("DuPont EIP"). The previous DuPont equity awards were converted into the right to receive 1.2820 shares of DowDuPont Common Stock. The awards have the same terms and conditions as were applicable to such equity awards immediately prior to the Merger closing date. Most of these awards have been granted annually in the first quarter of each calendar year. There was minimal grant activity in the second quarter of 2018 . In the first quarter of 2018, DuPont granted the following stock-based compensation awards under the DuPont EIP: • 3.3 million stock options with a weighted-average exercise price of $71.85 per share and a weighted-average fair value of $15.46 per share; and • 0.8 million RSUs with a weighted-average fair value of $71.75 per share. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2018 | |
Investments, All Other Investments [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS A summary of the Company's financial instruments, risk management policies, derivative instruments and hedging activities can be found in Note 21 of the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. If applicable, updates have been included in the respective section below. The following table summarizes the fair value of financial instruments at June 30, 2018 and December 31, 2017 : Fair Value of Financial Instruments Jun 30, 2018 Dec 31, 2017 In millions Cost Gain Loss Fair Value Cost Gain Loss Fair Value Cash equivalents 1 $ 4,279 $ — $ — $ 4,279 $ 6,927 $ — $ — $ 6,927 Restricted cash equivalents 1, 2 $ 516 $ — $ — $ 516 $ 558 $ — $ — $ 558 Marketable securities: Available-for-sale 3 $ 131 $ 2 $ — $ 133 $ 4 $ — $ — $ 4 Held-to-maturity 1, 4 374 — — 374 952 — — 952 Total marketable securities $ 505 $ 2 $ — $ 507 $ 956 $ — $ — $ 956 Other investments: Debt securities: Government debt 5 $ 678 $ 8 $ (24 ) $ 662 $ 637 $ 13 $ (11 ) $ 639 Corporate bonds 913 22 (28 ) 907 704 32 (3 ) 733 Total debt securities $ 1,591 $ 30 $ (52 ) $ 1,569 $ 1,341 $ 45 $ (14 ) $ 1,372 Equity securities 6 $ 154 $ 20 $ (13 ) $ 161 $ 164 $ 2 $ (26 ) $ 140 Total other investments $ 1,745 $ 50 $ (65 ) $ 1,730 $ 1,505 $ 47 $ (40 ) $ 1,512 Total cash and restricted cash equivalents, marketable securities and other investments $ 7,045 $ 52 $ (65 ) $ 7,032 $ 9,946 $ 47 $ (40 ) $ 9,953 Long-term debt including debt due within one year 7 $ (31,456 ) $ 467 $ (1,312 ) $ (32,301 ) $ (32,123 ) $ 69 $ (2,121 ) $ (34,175 ) Derivatives relating to: Interest rates $ — $ — $ (39 ) $ (39 ) $ — $ — $ (4 ) $ (4 ) Commodities 8 — 163 (212 ) (49 ) — 130 (256 ) (126 ) Foreign currency — 301 (79 ) 222 — 31 (159 ) (128 ) Total derivatives $ — $ 464 $ (330 ) $ 134 $ — $ 161 $ (419 ) $ (258 ) 1. Prior period amounts were updated to conform with the current year presentation. 2. Classified as "Other current assets" in the consolidated balance sheets. 3. Available-for-sale securities with maturities of less than one year at the time of purchase. 4. Held-to-maturity securities with maturities of more than three months to less than one year at the time of purchase. 5. U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. 6. Equity securities with a readily determinable fair value. Presented in accordance with ASU 2016-01. See Notes 1 and 2 for additional information. 7. Cost includes fair value adjustments of $419 million at June 30, 2018 and $492 million at December 31, 2017 , related to the accounting for the Merger. Cost also includes fair value hedge adjustments of $18 million at June 30, 2018 and $19 million at December 31, 2017 on $2,990 million of debt. 8. Presented net of cash collateral. Debt Securities The Company's investments in debt securities are primarily classified as available-for-sale. The following table provides the investing results from available-for-sale securities for the six months ended June 30, 2018 and 2017 : Investing Results 1 Six Months Ended In millions Jun 30, 2018 Jun 30, 2017 Proceeds from sales of available-for-sale securities $ 625 $ 132 Gross realized gains $ 15 $ 3 Gross realized losses $ (18 ) $ — 1. Prior year amounts were updated to conform with the current year presentation as a result of the adoption of ASU 2016-01. For the six months ended June 30, 2018 , $1,576 million of marketable securities matured. Equity Securities The Company's investments in equity securities with a readily determinable fair value totaled $161 million at June 30, 2018 ( $140 million at December 31, 2017 ). The net unrealized loss recognized in earnings on equity securities totaled $1 million for the three months ended June 30, 2018 , and an unrealized gain of $7 million for the six months ended June 30, 2018 . The aggregate carrying value of the Company’s investments in equity securities where fair value is not readily determinable totaled $96 million at June 30, 2018 , reflecting the cost of the investments. There were no adjustments to the cost basis of these investments for impairment or observable price changes for the three and six months ended June 30, 2018 . Derivatives Interest Rate Risk Management The main objective of interest rate risk management is to reduce the total funding cost to the Company and to alter the interest rate exposure to the desired risk profile. To achieve this objective, the Company hedges using interest rate swaps, “swaptions” and exchange-traded instruments. The Company had $2,536 million notional United States dollar equivalent open interest rate derivatives designated as cash flow hedges at June 30, 2018 , with a net loss included in AOCL of $30 million after tax (net loss of $3 million after tax at December 31, 2017 ). These contracts had maturity dates that extend to 2022 . The following tables provide the fair value and balance sheet classification of derivative instruments at June 30, 2018 and December 31, 2017 : Fair Value of Derivative Instruments Jun 30, 2018 In millions Balance Sheet Classification Gross Counterparty and Cash Collateral Netting 1 Net Amounts Included in the Consolidated Balance Sheet Asset derivatives: Derivatives designated as hedging instruments: Interest rate swaps Deferred charges and other assets $ 1 $ (1 ) $ — Foreign currency contracts Other current assets 158 (42 ) 116 Commodity contracts Other current assets 53 (4 ) 49 Commodity contracts Deferred charges and other assets 104 (2 ) 102 Total $ 316 $ (49 ) $ 267 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets $ 282 $ (97 ) $ 185 Commodity contracts Other current assets 11 (4 ) 7 Commodity contracts Deferred charges and other assets 6 (1 ) 5 Total $ 299 $ (102 ) $ 197 Total asset derivatives $ 615 $ (151 ) $ 464 Liability derivatives: Derivatives designated as hedging instruments: Interest rate swaps Other noncurrent obligations $ 40 $ (1 ) $ 39 Foreign currency contracts Accrued and other current liabilities 44 (42 ) 2 Commodity contracts Accrued and other current liabilities 94 (5 ) 89 Commodity contracts Other noncurrent obligations 115 (2 ) 113 Total $ 293 $ (50 ) $ 243 Derivatives not designated as hedging instruments: Foreign currency contracts Accrued and other current liabilities $ 130 $ (53 ) $ 77 Commodity contracts Accrued and other current liabilities 6 (4 ) 2 Commodity contracts Other noncurrent obligations 9 (1 ) 8 Total $ 145 $ (58 ) $ 87 Total liability derivatives $ 438 $ (108 ) $ 330 1. Counterparty and cash collateral amounts represent the estimated net settlement amount when applying netting and set-off rights included in master netting arrangements between the Company and its counterparties and the payable or receivable for cash collateral held or placed with the same counterparty. Fair Value of Derivative Instruments Dec 31, 2017 In millions Balance Sheet Classification Gross Counterparty and Cash Collateral Netting 1 Net Amounts Included in the Consolidated Balance Sheet Asset derivatives: Derivatives designated as hedging instruments: Foreign currency contracts Other current assets $ 51 $ (46 ) $ 5 Commodity contracts Other current assets 20 (4 ) 16 Commodity contracts Deferred charges and other assets 70 (5 ) 65 Total $ 141 $ (55 ) $ 86 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets $ 121 $ (95 ) $ 26 Commodity contracts Other current assets 50 (5 ) 45 Commodity contracts Deferred charges and other assets 7 (3 ) 4 Total $ 178 $ (103 ) $ 75 Total asset derivatives $ 319 $ (158 ) $ 161 Liability derivatives: Derivatives designated as hedging instruments: Interest rate swaps Other noncurrent obligations $ 4 $ — $ 4 Foreign currency contracts Accrued and other current liabilities 109 (46 ) 63 Commodity contracts Accrued and other current liabilities 96 (15 ) 81 Commodity contracts Other noncurrent obligations 143 (12 ) 131 Total $ 352 $ (73 ) $ 279 Derivatives not designated as hedging instruments: Foreign currency contracts Accrued and other current liabilities $ 186 $ (90 ) $ 96 Commodity contracts Accrued and other current liabilities 45 (6 ) 39 Commodity contracts Other noncurrent obligations 8 (3 ) 5 Total $ 239 $ (99 ) $ 140 Total liability derivatives $ 591 $ (172 ) $ 419 1. Counterparty and cash collateral amounts represent the estimated net settlement amount when applying netting and set-off rights included in master netting arrangements between the Company and its counterparties and the payable or receivable for cash collateral held or placed with the same counterparty. Assets and liabilities related to forward contracts, interest rate swaps, currency swaps, options and other conditional or exchange contracts executed with the same counterparty under a master netting arrangement are netted. Collateral accounts are netted with corresponding liabilities. The Company posted cash collateral of $6 million at June 30, 2018 ( $26 million at December 31, 2017 ). Counterparties posted cash collateral of $43 million with the Company at June 30, 2018 ( zero at December 31, 2017 ). Income Statement Effect of Derivative Instruments Foreign currency derivatives not designated as hedges are used to offset foreign exchange gains or losses resulting from the underlying exposures of foreign currency denominated assets and liabilities. The amount charged on a pretax basis related to foreign currency derivatives not designated as a hedge, which was included in “Sundry income (expense) - net” in the consolidated statements of income, was a gain of $259 million for the three months ended June 30, 2018 ( $193 million loss for the three months ended June 30, 2017 ) and a gain of $61 million for the six months ended June 30, 2018 ( $160 million loss for the six months ended June 30, 2017 ). The income statement effects of other derivatives were immaterial. Reclassification from AOCL The net after-tax amounts to be reclassified from AOCL to income within the next 12 months are a $1 million loss for interest rate contracts, a $27 million loss for commodity contracts and a $9 million gain for foreign currency contracts. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS A summary of the Company's recurring and nonrecurring fair value measurements can be found in Note 22 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. If applicable, updates have been included in the respective section below. Fair Value Measurements on a Recurring Basis The following tables summarize the bases used to measure certain assets and liabilities at fair value on a recurring basis: Basis of Fair Value Measurements on a Recurring Basis at Jun 30, 2018 Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total In millions Assets at fair value: Cash equivalents and restricted cash equivalents 1 $ — $ 4,795 $ — $ 4,795 Marketable securities 2 — 507 — 507 Interests in trade accounts receivable conduits 3 — — 24 24 Equity securities 4 22 139 — 161 Debt securities: 4 Government debt 5 — 662 — 662 Corporate bonds — 907 — 907 Derivatives relating to: 6 Interest rates — 1 — 1 Commodities 39 135 — 174 Foreign currency — 440 — 440 Total assets at fair value $ 61 $ 7,586 $ 24 $ 7,671 Liabilities at fair value: Long-term debt including debt due within one year 7 $ — $ 32,301 $ — $ 32,301 Derivatives relating to: 6 Interest rates — 40 — 40 Commodities 20 204 — 224 Foreign currency — 174 — 174 Total liabilities at fair value $ 20 $ 32,719 $ — $ 32,739 1. Treasury bills, time deposits, and money market funds included in "Cash and cash equivalents" and money market funds included in "Other current assets" in the consolidated balance sheets and held at amortized cost, which approximates fair value. 2. Primarily time deposits with maturities of greater than three months at time of acquisition. 3. Included in "Accounts and notes receivable - Other" in the consolidated balance sheets. See Note 11 for additional information on transfers of financial assets. 4. The Company’s investments in debt securities, which are primarily available-for-sale, and equity securities are included in “Other investments” in the consolidated balance sheets. 5. U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. 6. See Note 18 for the classification of derivatives in the consolidated balance sheets. 7. See Note 18 for information on fair value measurements of long-term debt. Basis of Fair Value Measurements on a Recurring Basis at Dec 31, 2017 Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total In millions Assets at fair value: Cash equivalents and restricted cash equivalents 1 $ — $ 7,485 $ — $ 7,485 Marketable securities 2 — 956 — 956 Interests in trade accounts receivable conduits 3 — — 677 677 Equity securities 4 88 52 — 140 Debt securities: 4 Government debt 5 — 639 — 639 Corporate bonds — 733 — 733 Derivatives relating to: 6 Commodities 47 100 — 147 Foreign currency — 172 — 172 Total assets at fair value $ 135 $ 10,137 $ 677 $ 10,949 Liabilities at fair value: Long-term debt including debt due within one year 7 $ — $ 34,175 $ — $ 34,175 Derivatives relating to: 6 Interest rates — 4 — 4 Commodities 31 261 — 292 Foreign currency — 295 — 295 Total liabilities at fair value $ 31 $ 34,735 $ — $ 34,766 1. Treasury bills, time deposits, and money market funds included in "Cash and cash equivalents" and money market funds included in "Other current assets" in the consolidated balance sheets and held at amortized cost, which approximates fair value. 2. Primarily time deposits with maturities of greater than three months at time of acquisition. 3. Included in "Accounts and notes receivable - Other" in the consolidated balance sheets. See Note 11 for additional information on transfers of financial assets. 4. The Company’s investments in debt securities, which are primarily available-for-sale, and equity securities are included in “Other investments” in the consolidated balance sheets. 5. U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. 6. See Note 18 for the classification of derivatives in the consolidated balance sheets. 7. See Note 18 for information on fair value measurements of long-term debt. The following table summarizes the changes in fair value measurements of interests held in trade receivable conduits using Level 3 inputs for the three and six months ended June 30, 2018 and 2017: Fair Value Measurements Using Level 3 Inputs for Interests Held in Trade Receivable Conduits 1 Three Months Ended Six Months Ended Jun 30, 2018 Jun 30, 2017 Jun 30, 2018 Jun 30, 2017 In millions Balance at beginning of period $ 234 $ 1,663 $ 677 $ 1,237 Gain (loss) included in earnings 2 1 (2 ) 3 (2 ) Purchases 3 — 1,386 — 2,363 Settlements 3 (211 ) (1,363 ) (656 ) (1,914 ) Balance at end of period $ 24 $ 1,684 $ 24 $ 1,684 1. Included in "Accounts and notes receivable - Other" in the consolidated balance sheets. 2. Included in "Selling, general and administrative expenses" in the consolidated statements of income. 3. Presented in accordance with ASU 2016-15. See Notes 1 and 2 for additional information. In connection with the review and implementation of ASU 2016-15, the Company also changed the prior year value of “Purchases” and "Settlements" due to additional interpretive guidance of the required method for calculating the cash received from beneficial interests in the conduits. Fair Value Measurements on a Nonrecurring Basis As part of the Synergy Program, the Company has or will shut down a number of manufacturing, research and development ("R&D") and corporate facilities around the world. In the first six months of 2018 , manufacturing facilities and related assets and R&D facilities associated with this plan were written down to zero. The impairment charges related to the Synergy Program, totaling $75 million , were included in "Restructuring and asset related charges (credits) - net" in the consolidated statements of income. See Note 5 for additional information on the Company's restructuring activities. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES A summary of Dow and DuPont's variable interest entities ("VIEs") can be found in Note 23 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. DuPont did not hold a variable interest in any joint ventures at June 30, 2018, for which it is the primary beneficiary. In addition, the maximum exposure to loss related to the nonconsolidated VIEs for which DuPont did hold a variable interest at June 30, 2018, is not considered material to the consolidated financial statements. The following discussion addresses variable interests held by Dow. Assets and Liabilities of Consolidated VIEs The Company's consolidated financial statements include the assets, liabilities and results of operations of VIEs for which Dow is the primary beneficiary. The other equity holders’ interests are reflected in "Net income attributable to noncontrolling interests" in the consolidated statements of income and "Noncontrolling interests" in the consolidated balance sheets. The following table summarizes the carrying amounts of these entities’ assets and liabilities included in the Company’s consolidated balance sheets at June 30, 2018 and December 31, 2017 : Assets and Liabilities of Consolidated VIEs Jun 30, 2018 Dec 31, 2017 In millions Cash and cash equivalents $ 116 $ 107 Other current assets 129 131 Net property 786 907 Other noncurrent assets 47 50 Total assets 1 $ 1,078 $ 1,195 Current liabilities $ 325 $ 303 Long-Term debt 147 249 Other noncurrent obligations 35 41 Total liabilities 2 $ 507 $ 593 1. All assets were restricted at June 30, 2018 and December 31, 2017 . 2. All liabilities were nonrecourse at June 30, 2018 and December 31, 2017 . In addition, Dow holds a variable interest in an entity created to monetize accounts receivable of select European entities. Dow is the primary beneficiary of this entity as a result of holding subordinated notes while maintaining servicing responsibilities for the accounts receivable. The carrying amounts of assets and liabilities included in the Company’s consolidated balance sheets pertaining to this entity were current assets of $7 million ( zero restricted) at June 30, 2018 ( $671 million , zero restricted, at December 31, 2017 ), and current liabilities of less than $1 million ( zero nonrecourse) at June 30, 2018 (less than $1 million , zero nonrecourse, at December 31, 2017 ). Amounts presented in the consolidated balance sheets and the preceding table as restricted assets or nonrecourse obligations relating to consolidated VIEs at June 30, 2018 and December 31, 2017 , are adjusted for intercompany eliminations and parental guarantees. Nonconsolidated VIEs The following table summarizes the carrying amounts of assets and liabilities included in the consolidated balance sheets at June 30, 2018 and December 31, 2017 , related to variable interests in joint ventures or entities for which Dow is not the primary beneficiary. The Company's maximum exposure to loss is the same as the carrying amounts, unless otherwise noted below. Carrying Amounts of Assets and Liabilities Related to Nonconsolidated VIEs Jun 30, Dec 31, In millions Description of asset or liability Hemlock Semiconductor L.L.C. Equity method investment 1 $ (717 ) $ (752 ) Silicon joint ventures Equity method investments 2 $ 102 $ 103 AgroFresh Solutions, Inc Equity method investment 2 $ 42 $ 51 Other receivable 3 $ — $ 4 1. Classified as "Other noncurrent obligations" in the consolidated balance sheets. The Company's maximum exposure to loss was zero at June 30, 2018 ( zero at December 31, 2017 ). 2. Classified as "Investment in nonconsolidated affiliates" in the consolidated balance sheets. 3. Classified as "Accounts and notes receivable - Other" in the consolidated balance sheets. |
SEGMENTS AND GEOGRAPHIC REGIONS
SEGMENTS AND GEOGRAPHIC REGIONS | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENTS AND GEOGRAPHIC REGIONS | SEGMENTS AND GEOGRAPHIC REGIONS The Company's measure of profit/loss for segment reporting purposes is Operating EBITDA (for the three and six months ended June 30, 2018 ) and pro forma Operating EBITDA (for the three and six months ended June 30, 2017 ) as this is the manner in which the Company's chief operating decision maker ("CODM") assesses performance and allocates resources. The Company defines Operating EBITDA as earnings (i.e., “Income from continuing operations before income taxes") before interest, depreciation, amortization and foreign exchange gains (losses), excluding the impact of significant items. Pro forma Operating EBITDA is defined as pro forma earnings (i.e., pro forma “Income from continuing operations before income taxes") before interest, depreciation, amortization and foreign exchange gains (losses), excluding the impact of adjusted significant items. Reconciliations of these measures are provided on the following page. The Company also presents pro forma net sales for the three and six months ended June 30, 2017, as it is included in management's measure of segment performance and is regularly reviewed by the CODM. Prior year data has been updated to conform with the current year presentation. Pro forma adjustments used in the calculation of pro forma net sales and pro forma Operating EBITDA were determined in accordance with Article 11 of Regulation S-X. Pro forma financial information is based on the historical consolidated financial statements of Dow and DuPont, adjusted to give effect to the Merger as if it had been consummated on January 1, 2016. Pro forma adjustments have been made for (1) the preliminary purchase accounting impact, (2) accounting policy alignment, (3) the elimination of the effect of events that are directly attributable to the Merger Agreement (e.g., one-time transaction costs), (4) the elimination of the impact of transactions between Dow and DuPont, and (5) the elimination of the effect of consummated divestitures required as a condition of regulatory approval for the Merger. Events that are not expected to have a continuing impact on the combined results (e.g., inventory step-up costs) are excluded from the pro forma adjustments. Segment Information Agri-culture Perf. Materials & Coatings Ind. Interm. & Infrast. Pack. & Spec. Plastics Elect. & Imaging Nutrition & Biosciences Transp. & Adv. Polymers Safety & Const. Corp. Total In millions Three months ended Jun 30, 2018 Net sales $ 5,730 $ 2,599 $ 3,885 $ 6,099 $ 1,203 $ 1,775 $ 1,468 $ 1,411 $ 75 $ 24,245 Operating EBITDA 1 $ 1,685 $ 569 $ 682 $ 1,330 $ 372 $ 433 $ 446 $ 341 $ (182 ) $ 5,676 Equity in earnings (losses) of nonconsolidated affiliates $ 3 $ 36 $ 96 $ 108 $ 6 $ 5 $ 1 $ 8 $ (13 ) $ 250 Three months ended Jun 30, 2017 Net sales $ 1,629 $ 2,273 $ 3,015 $ 5,079 $ 677 $ 277 $ 298 $ 490 $ 96 $ 13,834 Pro forma net sales $ 4,595 $ 2,255 $ 3,013 $ 5,428 $ 1,221 $ 1,494 $ 1,284 $ 1,329 $ 98 $ 20,717 Pro forma Operating EBITDA 2 $ 1,165 $ 540 $ 417 $ 1,163 $ 410 $ 318 $ 308 $ 262 $ (190 ) $ 4,393 Equity in earnings (losses) of nonconsolidated affiliates $ 2 $ 41 $ (13 ) $ 33 $ — $ 2 $ — $ — $ (11 ) $ 54 Six months ended Jun 30, 2018 Net sales $ 9,538 $ 4,903 $ 7,600 $ 12,109 $ 2,356 $ 3,495 $ 2,893 $ 2,710 $ 151 $ 45,755 Operating EBITDA 1 $ 2,576 $ 1,197 $ 1,336 $ 2,631 $ 729 $ 851 $ 883 $ 695 $ (351 ) $ 10,547 Equity in earnings (losses) of nonconsolidated affiliates $ 2 $ 77 $ 245 $ 167 $ 13 $ 8 $ 4 $ 13 $ (22 ) $ 507 Six months ended Jun 30, 2017 Net sales $ 3,197 $ 4,352 $ 5,866 $ 10,104 $ 1,332 $ 534 $ 588 $ 924 $ 167 $ 27,064 Pro forma net sales $ 9,644 $ 4,318 $ 5,860 $ 10,810 $ 2,385 $ 2,918 $ 2,535 $ 2,542 $ 172 $ 41,184 Pro forma Operating EBITDA 2 $ 2,626 $ 1,021 $ 929 $ 2,277 $ 737 $ 635 $ 629 $ 554 $ (401 ) $ 9,007 Equity in earnings (losses) of nonconsolidated affiliates $ 4 $ 132 $ 60 $ 66 $ — $ 6 $ — $ — $ (18 ) $ 250 1. A reconciliation of "Income from continuing operations, net of tax" to Operating EBITDA is provided on the following page. 2. A reconciliation of "Income from continuing operations, net of tax" to pro forma Operating EBITDA is provided on the following page. In preparation for the Intended Business Separations, effective July 1, 2018, the results of the HSC Group joint ventures will be realigned from Performance Materials & Coatings to Electronics & Imaging. The information above does not reflect this realignment. Reconciliation of "Income from continuing operations, net of tax" to Operating EBITDA for the Three and Six Months Ended Jun 30, 2018 Three Months Ended Six Months Ended In millions Jun 30, 2018 Jun 30, 2018 Income from continuing operations, net of tax $ 1,803 $ 2,956 + Provision for income taxes on continuing operations 565 954 Income from continuing operations before income taxes $ 2,368 $ 3,910 + Depreciation and amortization 1,496 2,980 - Interest income 1 51 106 + Interest expense and amortization of debt discount 360 710 - Foreign exchange gains (losses), net 1, 2 (57 ) (155 ) - Significant items (1,446 ) (2,898 ) Operating EBITDA $ 5,676 $ 10,547 1. Included in "Sundry income (expense) - net." 2. Excludes a $50 million pretax foreign exchange loss significant item related to adjustments to DuPont's foreign currency exchange contracts as a result of U.S. tax reform during the six months ended June 30, 2018. Reconciliation of "Income from continuing operations, net of tax" to Pro Forma Operating EBITDA for the Three and Six Months Ended Jun 30, 2017 Three Months Ended Six Months Ended In millions Jun 30, 2017 Jun 30, 2017 Income from continuing operations, net of tax $ 1,359 $ 2,274 + Provision for income taxes on continuing operations 455 668 Income from continuing operations before income taxes $ 1,814 $ 2,942 + Depreciation and amortization 739 1,517 - Interest income 1 22 47 + Interest expense and amortization of debt discount 226 445 - Foreign exchange gains (losses), net 1 (30 ) (56 ) + Pro forma adjustments 1,284 3,045 - Adjusted significant items 2 (322 ) (1,049 ) Pro forma Operating EBITDA $ 4,393 $ 9,007 1. Included in "Sundry income (expense) - net." 2. Adjusted significant items, excluding the impact of one-time transaction costs directly attributable to the Merger and reflected in the pro forma adjustments. The significant items for the three and six months ended June 30, 2018, represent actual results. The adjusted significant items for the three and six months ended June 30, 2017, are presented on a pro forma basis. The following tables summarize the pretax impact of significant items and adjusted significant items by segment that are excluded from Operating EBITDA and pro forma Operating EBITDA above: Significant Items by Segment for the Three Months Ended Jun 30, 2018 Agri-culture Perf. Materials & Coatings Ind. Interm. & Infrast. Pack. & Spec. Plastics Elect. & Imaging Nutrition & Biosciences Transp. & Adv. Polymers Safety & Const. Corp. Total In millions Net loss on divestiture and change in joint venture ownership 1 $ 24 $ (41 ) $ — $ — $ — $ — $ — $ — $ — $ (17 ) Integration and separation costs 2 — — — — — — — — (558 ) (558 ) Inventory step-up amortization 3 (676 ) — — (2 ) — (4 ) — — — (682 ) Restructuring and asset related charges (credits) - net 4 (37 ) (15 ) — (3 ) (1 ) — — (12 ) (121 ) (189 ) Total $ (689 ) $ (56 ) $ — $ (5 ) $ (1 ) $ (4 ) $ — $ (12 ) $ (679 ) $ (1,446 ) 1. Includes a gain related to Agriculture asset sales and a loss related to post-closing adjustments related to the Dow Silicones ownership restructure. 2. Integration and separation costs related to the Merger, post-Merger integration and Intended Business Separation activities, and costs related to the ownership restructure of Dow Silicones. 3. Includes the fair value step-up of DuPont's inventories as a result of the Merger and the acquisition of the H&N Business. See Note 3 for additional information. 4. Includes Board approved restructuring plans and asset related charges, which include other asset impairments. See Note 5 for additional information. Adjusted Significant Items by Segment for the Three Months Ended Jun 30, 2017 Agri-culture Perf. Materials & Coatings Ind. Interm. & Infrast. Pack. & Spec. Plastics Elect. & Imaging Nutrition & Biosciences Transp. & Adv. Polymers Safety & Const. Corp. Total In millions Gain on divestiture 1 $ — $ — $ — $ — $ — $ — $ — $ — $ 7 $ 7 Integration and separation costs 2 — — — — — — — — (296 ) (296 ) Litigation related charges, awards and adjustments 3 — — — 137 — — — — — 137 Restructuring and asset related charges (credits) - net 4 — 3 — — (1 ) — (2 ) (157 ) 9 (148 ) Transaction costs and productivity actions 5 — — — — — — — — (22 ) (22 ) Total $ — $ 3 $ — $ 137 $ (1 ) $ — $ (2 ) $ (157 ) $ (302 ) $ (322 ) 1. Includes post-closing adjustments on the split-off of Dow's chlorine value chain. 2. Integration and separation costs related to the Merger and the ownership restructure of Dow Silicones. 3. Includes a patent infringement matter with Nova Chemicals Corporation. See Note 13 for additional information. 4. Includes Board approved restructuring plans and asset related charges, which includes other asset impairments. See Note 5 for additional information. 5. Includes implementation costs associated with Dow's restructuring programs and other productivity actions. Significant Items by Segment for the Six Months Ended Jun 30, 2018 Agri-culture Perf. Materials & Coatings Ind. Interm. & Infrast. Pack. & Spec. Plastics Elect. & Imaging Nutrition & Biosciences Transp. & Adv. Polymers Safety & Const. Corp. Total In millions Net gain on divestitures and change in joint venture ownership 1 $ 24 $ (41 ) $ 20 $ — $ — $ — $ — $ — $ — $ 3 Integration and separation costs 2 — — — — — — — — (1,015 ) (1,015 ) Inventory step-up amortization 3 (1,315 ) — — (2 ) — (67 ) — (1 ) — (1,385 ) Restructuring and asset related charges (credits) - net 4 (95 ) (14 ) (11 ) (9 ) (2 ) — 1 (19 ) (302 ) (451 ) Income tax related item 5 — — — — — — — — (50 ) (50 ) Total $ (1,386 ) $ (55 ) $ 9 $ (11 ) $ (2 ) $ (67 ) $ 1 $ (20 ) $ (1,367 ) $ (2,898 ) 1. Includes a gain related to Dow's sale of its equity interest in MEGlobal, a gain related to Agriculture asset sales and a loss related to post-closing adjustments on the Dow Silicones ownership restructure. 2. Integration and separation costs related to the Merger, post-Merger integration and Intended Business Separation activities, and costs related to the ownership restructure of Dow Silicones. 3. Includes the fair value step-up of DuPont's inventories as a result of the Merger and the acquisition of the H&N Business. See Note 3 for additional information. 4. Includes Board approved restructuring plans and asset related charges, which include other asset impairments. See Note 5 for additional information. 5. Includes a foreign exchange loss related to adjustments to DuPont's foreign currency exchange contracts as a result of U.S. tax reform. Adjusted Significant Items by Segment for the Six Months Ended Jun 30, 2017 Agri-culture Perf. Materials & Coatings Ind. Interm. & Infrast. Pack. & Spec. Plastics Elect. & Imaging Nutrition & Biosciences Transp. & Adv. Polymers Safety & Const. Corp. Total In millions Gains on divestitures 1 $ — $ — $ — $ — $ — $ 162 $ — $ — $ 7 $ 169 Integration and separation costs 2 — — — — — — — — (538 ) (538 ) Litigation related charges, awards and adjustments 3 (469 ) — — 137 — — — — — (332 ) Restructuring and asset related charges (credits) - net 4 — 3 — — (3 ) (6 ) (4 ) (265 ) (25 ) (300 ) Transaction costs and productivity actions 5 — — — — — — — — (48 ) (48 ) Total $ (469 ) $ 3 $ — $ 137 $ (3 ) $ 156 $ (4 ) $ (265 ) $ (604 ) $ (1,049 ) 1. Includes the sale of DuPont's global food safety diagnostic business and post-closing adjustments on the split-off of Dow's chlorine value chain. 2. Integration and separation costs related to the Merger and the ownership restructure of Dow Silicones. 3. Includes an arbitration matter with Bayer CropScience and a patent infringement matter with Nova Chemicals Corporation. See Note 13 for additional information. 4. Includes Board approved restructuring plans and asset related charges, which includes other asset impairments. See Note 5 for additional information. 5. Includes implementation costs associated with Dow's restructuring programs and other productivity actions. |
CONSOLIDATED FINANCIAL STATEM30
CONSOLIDATED FINANCIAL STATEMENTS (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | RECENT ACCOUNTING GUIDANCE Recently Adopted Accounting Guidance In the second quarter of 2018, the Company early adopted ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities," which amends the hedge accounting recognition and presentation under Accounting Standards Codification ("ASC") 815, with the objectives of improving the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities and simplifying the application of hedge accounting by preparers. The new standard expands the strategies eligible for hedge accounting, relaxes the timing requirements of hedge documentation and effectiveness assessments, and permits, in certain cases, the use of qualitative assessments on an ongoing basis to assess hedge effectiveness. The new guidance also requires new disclosures and presentation. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted in any interim or annual period after issuance of the ASU. Entities must adopt the new guidance by applying a modified retrospective approach to hedging relationships existing as of the adoption date. The adoption of the new guidance did not have a material impact on the consolidated financial statements. In the second quarter of 2018, the Company early adopted ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income," which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from The Act, which was enacted on December 22, 2017, and requires certain disclosures about stranded tax effects. An entity has the option of applying the new guidance at the beginning of the period of adoption or retrospectively to each period (or periods) in which the tax effects related to items remaining in accumulated other comprehensive income are recognized. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and early adoption is permitted, including adoption in an interim period for reporting periods for which financial statements have not yet been issued. The Company's adoption of the new standard was applied prospectively at the beginning of the second quarter of 2018, with a reclassification of the stranded tax effects as a result of The Act from accumulated other comprehensive loss to retained earnings. See Note 1 for additional information. In the first quarter of 2018, the Company adopted ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," which is the new comprehensive revenue recognition standard that supersedes the revenue recognition requirements in Topic 605, "Revenue Recognition," and most industry specific guidance. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to a customer in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In 2015 and 2016, the Financial Accounting Standards Board ("FASB") issued additional ASUs related to Topic 606 that delayed the effective date of the guidance and clarified various aspects of the new revenue guidance, including principal versus agent considerations, identification of performance obligations, and accounting for licenses, and included other improvements and practical expedients. The new guidance was effective for annual and interim periods beginning after December 15, 2017. The Company elected to adopt the new guidance using the modified retrospective transition method for all contracts not completed as of the date of adoption. The Company recognized the cumulative effect of applying the new revenue standard as an adjustment to the opening balance of retained earnings at the beginning of the first quarter of 2018. The comparative periods have not been restated and continue to be accounted for under Topic 605. The adoption of the new guidance did not have a material impact on the consolidated financial statements. See Notes 1 and 4 for additional disclosures regarding the Company's contracts with customers as well as the impact of adopting Topic 606. In the first quarter of 2018, the Company adopted ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Changes to the current guidance primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company applied the amendments in the new guidance by means of a cumulative-effect adjustment to the opening balance of retained earnings at the beginning of the first quarter of 2018. The adoption of the new guidance did not have a material impact on the consolidated financial statements. See Notes 1 and 18 for additional information. In the first quarter of 2018, the Company adopted ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," which addresses diversity in practice in how certain cash receipts and cash payments are presented and classified in the statements of cash flows and addresses eight specific cash flow issues. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. A key provision in the new guidance impacted the presentation of interests in certain trade accounts receivable conduits, which were retrospectively reclassified from "Operating Activities" to "Investing Activities" in the consolidated statements of cash flows. See Note 1 for additional information. In the first quarter of 2018, the Company adopted ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory," which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments were effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The new guidance was applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings at the beginning of the first quarter of 2018. The adoption of this guidance did not have a material impact on the consolidated financial statements. See Note 1 for additional information. In the first quarter of 2018, the Company adopted ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash," which clarifies how entities should present restricted cash and restricted cash equivalents in the statements of cash flows, and as a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statements of cash flows. An entity with a material balance of restricted cash and restricted cash equivalents must disclose information about the nature of the restrictions. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The new guidance changed the presentation of restricted cash in the consolidated statements of cash flows and was implemented on a retrospective basis in the first quarter of 2018. See Notes 1 and 6 for additional information. In the first quarter of 2018, the Company adopted ASU 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business," which narrows the existing definition of a business and provides a framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. The guidance requires an entity to evaluate if substantially all of the fair value of gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities (collectively the "set") is not a business. To be considered a business, the set would need to include an input and a substantive process that together significantly contribute to the ability to create outputs, as defined by the ASU. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and should be applied prospectively. The Company will apply the new guidance to all applicable transactions after the adoption date. In the first quarter of 2018, the Company adopted ASU 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost," which amends the requirements related to the income statement presentation of the components of net periodic benefit cost for employer sponsored defined benefit pension and other postretirement benefit plans. Under the new guidance, an entity must disaggregate and present the service cost component of net periodic benefit cost in the same income statement line items as other employee compensation costs arising from services rendered during the period, and only the service cost component will be eligible for capitalization. Other components of net periodic benefit cost must be presented separately from the line items that includes the service cost. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Entities were required to use a retrospective transition method to adopt the requirement for separate income statement presentation of the service cost and other components, and a prospective transition method to adopt the requirement to limit the capitalization of benefit cost to the service component. Accordingly, in the first quarter of 2018, the Company used a retrospective transition method to reclassify net periodic benefit cost, other than the service component, from "Cost of sales," "Research and development expenses" and "Selling, general and administrative expenses" to "Sundry income (expense) - net" in the consolidated statements of income. See Note 1 for additional information. Accounting Guidance Issued But Not Adopted at June 30, 2018 In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The new guidance requires that a lessee recognize assets and liabilities for leases with lease terms of more than twelve months and recognition, presentation and measurement in the financial statements will depend on its classification as a finance or operating lease. In addition, the new guidance will require disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. Lessor accounting remains largely unchanged from current U.S. GAAP but does contain some targeted improvements to align with the new revenue recognition guidance issued in 2014. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, using a modified retrospective approach, and early adoption is permitted. The Company has a cross-functional team in place to evaluate and implement the new guidance. The team continues to review existing lease arrangements and has engaged third parties to assist with the collection of lease data. The impact of applying the practical expedients and accounting policy elections has been evaluated and the Company is in the process of documenting the related considerations and decisions. The Company is currently implementing software solutions, enhancing accounting systems and updating business processes and controls related to leases. Collectively, these activities are expected to facilitate the Company's ability to meet the new accounting and disclosure requirements upon adoption in the first quarter of 2019. The Company is working to quantify the impact and anticipates that the adoption of the new standard will result in a material increase in lease-related assets and liabilities in the consolidated balance sheets. |
Basis of Presentation | The unaudited interim consolidated financial statements of DowDuPont and its subsidiaries were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and reflect all adjustments (including normal recurring accruals) which, in the opinion of management, are considered necessary for the fair presentation of the results for the periods presented. |
Revenue | Revenue The Company recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. To determine revenue recognition for the arrangements that the Company determines are within the scope of Topic 606, the Company 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 4 for additional information on revenue recognition. Revenue related to Dow's insurance operations includes third-party insurance premiums, which are earned over the terms of the related insurance policies and reinsurance contracts. |
Income Tax, Policy [Policy Text Block] | As a result of the adoption of ASU 2018-02, the Company's significant accounting policy for income taxes was updated to indicate the Company uses the portfolio approach for releasing income tax effects from accumulated other comprehensive loss. |
CONSOLIDATED FINANCIAL STATEM31
CONSOLIDATED FINANCIAL STATEMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of changes to the Consolidated Statements of Cash Flows | Changes to Prior Period Consolidated Financial Statements As a result of the Merger, certain reclassifications of prior period amounts have been made to improve comparability and conform with the current period presentation. Presentation changes were made to the consolidated statements of income, consolidated statements of cash flows and consolidated statements of equity. In addition, certain reclassifications of prior period data have been made in the Notes to the Consolidated Financial Statements to conform with the current period presentation. In the first quarter of 2018, the Company adopted new accounting standards that required retrospective application. The Company updated the consolidated statements of income as a result of adopting Accounting Standards Update ("ASU") 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The consolidated statements of cash flows were updated as a result of adopting ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" and ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash." See Note 2 for additional information. Changes to the consolidated financial statements as a result of the Merger and the retrospective application of the new accounting standards are summarized as follows: Summary of Changes to the Consolidated Statements of Income Three Months Ended Jun 30, 2017 In millions As Filed Merger Reclass 1 ASU Impact 2 Updated Cost of sales $ 10,764 $ (1 ) $ (2 ) $ 10,761 Research and development expenses $ 405 $ — $ 3 $ 408 Selling, general and administrative expenses $ 855 $ (135 ) $ — $ 720 Integration and separation costs $ — $ 136 $ — $ 136 Sundry income (expense) - net $ 299 $ 22 $ 1 $ 322 Interest income $ 22 $ (22 ) $ — $ — Summary of Changes to the Consolidated Statements of Income Six Months Ended Jun 30, 2017 In millions As Filed Merger Reclass 1 ASU Impact 2 Updated Cost of sales $ 20,961 $ (1 ) $ (5 ) $ 20,955 Research and development expenses $ 821 $ — $ 6 $ 827 Selling, general and administrative expenses $ 1,722 $ (244 ) $ 1 $ 1,479 Integration and separation costs $ — $ 245 $ — $ 245 Sundry income (expense) - net $ (171 ) $ 47 $ 2 $ (122 ) Interest income $ 47 $ (47 ) $ — $ — 1. Costs associated with integration and separation activities are now separately reported as “Integration and separation costs” and were reclassified from "Cost of sales" and “Selling, general and administrative expenses.” In addition, “Interest income” was reclassified to “Sundry income (expense) - net.” 2. Reflects changes resulting from the adoption of ASU 2017-07. See Note 2 for additional information. Summary of Changes to the Consolidated Statements of Cash Flows Six Months Ended Jun 30, 2017 In millions As Filed Merger Reclass ASU Impact 1 Updated Operating Activities Net periodic pension benefit cost $ — $ 219 $ — $ 219 Net gain on sales of assets, businesses and investments $ — $ (190 ) $ — $ (190 ) Net gain on sales of investments $ (53 ) $ 53 $ — $ — Net gain on sales of property, businesses and consolidated companies $ (135 ) $ 135 $ — $ — Net gain on sale of ownership interests in nonconsolidated affiliates $ (2 ) $ 2 $ — $ — Other net loss $ 75 $ 177 $ — $ 252 Proceeds from interests in trade accounts receivable conduits $ 804 $ — $ (804 ) $ — Accounts and notes receivable $ (2,123 ) $ — $ (1,110 ) $ (3,233 ) Accounts payable $ 620 $ 206 $ — $ 826 Other assets and liabilities, net $ (279 ) $ (602 ) $ (2 ) $ (883 ) Cash provided by (used for) operating activities $ 1,815 $ — $ (1,916 ) $ (101 ) Investing Activities Payment into escrow account $ (130 ) $ — $ 130 $ — Distribution from escrow account $ 130 $ — $ (130 ) $ — Acquisitions of property, businesses and consolidated companies, net of cash acquired $ (31 ) $ — $ 31 $ — Proceeds from interests in trade accounts receivable conduits $ — $ — $ 1,914 $ 1,914 Cash provided by (used for) investing activities $ (1,753 ) $ — $ 1,945 $ 192 Financing Activities Contingent payment for acquisition of businesses $ — $ — $ (31 ) $ (31 ) Cash used for financing activities $ (659 ) $ — $ (31 ) $ (690 ) Summary Decrease in cash, cash equivalents and restricted cash $ (389 ) $ — $ (2 ) $ (391 ) Cash, cash equivalents and restricted cash at beginning of period $ 6,607 $ — $ 17 $ 6,624 Cash, cash equivalents and restricted cash at end of period $ 6,218 $ — $ 15 $ 6,233 1. Reflects the adoption of ASU 2016-15 and ASU 2016-18. See Note 2 for additional information. In connection with the review and implementation of ASU 2016-15, the Company also changed the prior year value of “Proceeds from interests in trade accounts receivable conduits” due to additional interpretive guidance of the required method for calculating the cash received from beneficial interests in the conduits. Summary of Changes to the Consolidated Statements of Equity Six Months Ended Jun 30, 2017 In millions As Filed Merger Reclass Updated Dividend equivalents on participating securities $ (15 ) $ 15 $ — Other $ — $ (15 ) $ (15 ) Opening Balance Sheet Impact of Accounting Standards Adoption In the first quarter of 2018, the Company adopted ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)" and the associated ASUs (collectively, "Topic 606"), ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" and ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory." See Note 2 for additional information on these ASUs. The cumulative effect on the Company's January 1, 2018, consolidated balance sheet as a result of adopting these accounting standards is summarized in the following table: Summary of Impacts to the Consolidated Balance Sheet Dec 31, 2017 Adjustments due to: Jan 1, 2018 In millions As Filed Topic 606 ASU 2016-01 ASU 2016-16 Updated Assets Accounts and notes receivable - Trade $ 11,314 $ 87 $ — $ — $ 11,401 Accounts and notes receivable - Other $ 5,579 $ (8 ) $ — $ — $ 5,571 Inventories $ 16,992 $ (64 ) $ — $ — $ 16,928 Other current assets $ 1,614 $ 130 $ — $ 31 $ 1,775 Total current assets $ 49,893 $ 145 $ — $ 31 $ 50,069 Deferred income tax assets $ 1,869 $ 26 $ — $ 10 $ 1,905 Deferred charges and other assets $ 2,774 $ 43 $ — $ — $ 2,817 Total other assets $ 97,444 $ 69 $ — $ 10 $ 97,523 Total Assets $ 192,164 $ 214 $ — $ 41 $ 192,419 Liabilities Accounts payable - Trade $ 9,134 $ (3 ) $ — $ — $ 9,131 Accounts payable - Other $ 3,727 $ 10 $ — $ — $ 3,737 Income taxes payable $ 843 $ (2 ) $ — $ — $ 841 Accrued and other current liabilities $ 8,409 $ 171 $ — $ — $ 8,580 Total current liabilities $ 26,128 $ 176 $ — $ — $ 26,304 Deferred income tax liabilities $ 6,266 $ 3 $ — $ — $ 6,269 Other noncurrent obligations $ 7,969 $ 117 $ — $ — $ 8,086 Total other noncurrent liabilities $ 34,053 $ 120 $ — $ — $ 34,173 Stockholders' Equity Retained earnings $ 29,211 $ (82 ) $ (20 ) $ 41 $ 29,150 Accumulated other comprehensive loss $ (8,972 ) $ — $ 20 $ — $ (8,952 ) DowDuPont's stockholders' equity $ 100,330 $ (82 ) $ — $ 41 $ 100,289 Total equity $ 101,927 $ (82 ) $ — $ 41 $ 101,886 Total Liabilities and Equity $ 192,164 $ 214 $ — $ 41 $ 192,419 The most significant changes as a result of adopting Topic 606 relate to the reclassification of the Company's return assets and refund liabilities in the Agriculture segment in the consolidated balance sheets. Under previous guidance, the Company accrued the amount of expected product returns as a reduction of "Accounts and notes receivable - Trade" with the value associated with the expected returns recorded in "Inventories" in the consolidated balance sheets. Under Topic 606, the Company now records the amount of expected product returns as refund liabilities, included in "Accrued and other current liabilities" and the products expected to be recovered as return assets, included in "Other current assets" in the consolidated balance sheets. The reclassifications of return assets and refund liabilities were $61 million and $119 million , respectively, at January 1, 2018. In addition, deferred revenue, included in "Accrued and other current liabilities" and "Other noncurrent obligations" in the consolidated balance sheets, increased as certain performance obligations, which were previously recognized over time and related to the licensing of certain rights to patents and technology, as well as other performance obligations, are now recognized at a point in time as none of the three criteria for 'over time' recognition under Topic 606 are met. In the second quarter of 2018, the Company early adopted ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." This standard was adopted on April 1, 2018, and resulted in a $1,057 million increase to retained earnings due to the reclassification from accumulated other comprehensive loss. The reclassification was primarily related to the change in the federal corporate tax rate and the effect of the Tax Cuts and Jobs Act of 2017 ("The Act") on the Company's pension plans, derivative instruments, available-for-sale securities and cumulative translation adjustments. This reclassification is reflected in the "Adoption of accounting standards" line in the consolidated statements of equity. See Note 2 for additional information. Current Period Impact of Topic 606 The following table summarizes the effects of adopting Topic 606 on the Company's consolidated balance sheets, which was applied prospectively to contracts not completed at January 1, 2018. The effects of adopting Topic 606 did not have a material impact on the consolidated statements of income and the consolidated statements of cash flows. Summary of Impacts to the Consolidated Balance Sheets As Reported at Jun 30, 2018 Adjustments Balance at Jun 30, 2018 Excluding Adoption of Topic 606 In millions Assets Accounts and notes receivable - Trade $ 15,379 $ (177 ) $ 15,202 Accounts and notes receivable - Other $ 4,924 $ 27 $ 4,951 Inventories $ 15,630 $ 81 $ 15,711 Other current assets $ 2,213 $ (155 ) $ 2,058 Total current assets $ 47,897 $ (224 ) $ 47,673 Deferred income tax assets $ 1,701 $ (28 ) $ 1,673 Deferred charges and other assets $ 2,709 $ (43 ) $ 2,666 Total other assets $ 95,916 $ (71 ) $ 95,845 Total Assets $ 187,367 $ (295 ) $ 187,072 Liabilities Accounts payable - Other $ 4,662 $ (10 ) $ 4,652 Income taxes payable $ 874 $ 2 $ 876 Accrued and other current liabilities $ 7,191 $ (187 ) $ 7,004 Total current liabilities $ 28,110 $ (195 ) $ 27,915 Deferred income tax liabilities $ 5,885 $ (11 ) $ 5,874 Other noncurrent obligations $ 7,767 $ (134 ) $ 7,633 Total other noncurrent liabilities $ 32,525 $ (145 ) $ 32,380 Stockholders' Equity Retained earnings $ 30,432 $ 45 $ 30,477 DowDuPont's stockholders' equity $ 98,262 $ 45 $ 98,307 Total equity $ 99,882 $ 45 $ 99,927 Total Liabilities and Equity $ 187,367 $ (295 ) $ 187,072 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of fair value of consideration transferred | Merger Consideration In millions (except exchange ratio) DuPont Common Stock outstanding at Aug 31, 2017 868.3 DuPont exchange ratio 1.2820 DowDuPont Common Stock issued in exchange for DuPont Common Stock 1,113.2 Fair value of DowDuPont Common Stock issued 1 $ 74,195 Fair value of DowDuPont equity awards issued in exchange for outstanding DuPont equity awards 2 485 Total consideration $ 74,680 1. Amount was determined based on the price per share of Dow Common Stock of $66.65 on August 31, 2017. 2. Represents the fair value of replacement awards issued for DuPont's equity awards outstanding immediately before the Merger and attributable to the service periods prior to the Merger. The previous DuPont equity awards were converted into the right to receive 1.2820 shares of DowDuPont Common Stock. |
Schedule of assets acquired and liabilities assumed | DuPont Assets Acquired and Liabilities Assumed on Aug 31, 2017 Estimated fair value adjusted In millions Fair Value of Assets Acquired Cash and cash equivalents $ 4,005 Marketable securities 2,849 Accounts and notes receivable - Trade 6,199 Accounts and notes receivable - Other 1,648 Inventories 8,806 Other current assets 420 Assets held for sale 3,732 Investment in nonconsolidated affiliates 1,626 Other investments 50 Noncurrent receivables 84 Property 11,711 Goodwill 45,499 Other intangible assets 27,104 Deferred income tax assets 284 Deferred charges and other assets 1,932 Total Assets $ 115,949 Fair Value of Liabilities Assumed Notes payable $ 4,046 Long-term debt due within one year 1,273 Accounts payable - Trade 2,346 Accounts payable - Other 952 Income taxes payable 261 Accrued and other current liabilities 3,517 Liabilities held for sale 125 Long-term debt 9,878 Deferred income tax liabilities 8,319 Pension and other postretirement benefits - noncurrent 8,056 Other noncurrent obligations 2,023 Total Liabilities $ 40,796 Noncontrolling interests 473 Net Assets (Consideration for the Merger) $ 74,680 |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The Company disaggregates its revenue from contracts with customers by segment and business or major product line and geographic region, as the Company believes it best depicts the nature, amount, timing and uncertainty of its revenue and cash flows. See details in the tables below: Net Trade Revenue by Segment and Business or Major Product Line Three Months Ended Jun 30, 2018 Six Months Ended Jun 30, 2018 In millions Crop Protection $ 1,853 $ 3,348 Seed 3,877 6,190 Agriculture $ 5,730 $ 9,538 Coatings & Performance Monomers $ 1,084 $ 2,025 Consumer Solutions 1,515 2,878 Performance Materials & Coatings $ 2,599 $ 4,903 Construction Chemicals $ 226 $ 408 Industrial Solutions 1,198 2,357 Polyurethanes & CAV 2,458 4,828 Other 3 7 Industrial Intermediates & Infrastructure $ 3,885 $ 7,600 Hydrocarbons & Energy $ 1,853 $ 3,653 Packaging and Specialty Plastics 4,246 8,456 Packaging & Specialty Plastics $ 6,099 $ 12,109 Advanced Printing $ 136 $ 258 Display & Other Technologies 82 142 Interconnect Solutions 298 579 Photovoltaic & Advanced Materials 282 571 Semiconductor Technologies 405 806 Electronics & Imaging $ 1,203 $ 2,356 Industrial Biosciences $ 561 $ 1,102 Nutrition & Health 1,214 2,393 Nutrition & Biosciences $ 1,775 $ 3,495 Nylon Enterprise & Polyester $ 699 $ 1,367 Performance Resins 486 837 Performance Solutions 283 689 Transportation & Advanced Polymers $ 1,468 $ 2,893 Aramids $ 398 $ 791 Construction 435 820 TYVEK® Enterprise 316 608 Water Solutions 262 491 Safety & Construction $ 1,411 $ 2,710 Corporate $ 75 $ 151 Total $ 24,245 $ 45,755 Net Trade Revenue by Geographic Region Three Months Ended Six Months Ended In millions U.S. & Canada $ 10,452 $ 18,361 EMEA 1 6,294 13,213 Asia Pacific 5,398 10,188 Latin America 2,101 3,993 Total $ 24,245 $ 45,755 1. Europe, Middle East and Africa. |
Contract with Customer, Asset and Liability [Table Text Block] | Contract Balances Jun 30, 2018 Topic 606 Adjustments Jan 1, 2018 Dec 31, 2017 In millions Accounts and notes receivable - Trade $ 15,379 $ 87 $ 11,314 Contract assets - current 1 $ 82 $ 58 $ — Contract assets - noncurrent 2 $ 45 $ 43 $ — Contract liabilities - current 3 $ 544 $ 52 $ 2,131 Contract liabilities - noncurrent 4 $ 1,496 $ 117 $ 1,413 1. Included in "Other current assets" in the consolidated balance sheets. 2. Included in "Deferred charges and other assets" in the consolidated balance sheets. 3. Included in "Accrued and other current liabilities" in the consolidated balance sheets. 4. Included in "Other noncurrent obligations" in the consolidated balance sheets. |
RESTRUCTURING AND ASSET RELAT34
RESTRUCTURING AND ASSET RELATED CHARGES (CREDITS) - NET (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Synergy Program | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of restructuring reserve activity | Synergy Program Severance and Related Benefit Costs Asset Write-downs and Write-offs Costs Associated with Exit and Disposal Activities Total In millions 2017 restructuring charges $ 510 $ 290 $ 74 $ 874 Charges against the reserve — (290 ) — (290 ) Non-cash compensation (7 ) — — (7 ) Cash payments (64 ) — (3 ) (67 ) Reserve balance at Dec 31, 2017 $ 439 $ — $ 71 $ 510 2018 restructuring charges 1 294 81 67 442 Charges against the reserve — (81 ) — (81 ) Cash payments (194 ) — (58 ) (252 ) Net translation adjustment (2 ) — — (2 ) Reserve balance at Jun 30, 2018 $ 537 $ — $ 80 $ 617 1. Included in "Restructuring and asset related charges (credits) - net" in the consolidated statements of income. Restructuring charges recorded for severance and related benefit costs were related to Corporate. The Company recorded restructuring charges of $27 million for costs of associated with exit and disposal activities for the three months ended June 30, 2018 related to Agriculture (charge of $23 million ), Safety & Construction (charge of $9 million ) and Corporate (benefit of $5 million ). |
Dow 2016 Restructuring Plan | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of restructuring reserve activity | 2016 Restructuring Severance and Related Benefit Costs Costs Associated with Exit and Disposal Activities Total In millions Reserve balance at Dec 31, 2017 $ 51 $ 17 $ 68 Adjustments to the reserve 1 (8 ) 14 6 Cash payments (37 ) (4 ) (41 ) Reserve balance at Jun 30, 2018 $ 6 $ 27 $ 33 1. Included in "Restructuring and asset related charges (credits) - net" in the consolidated statements of income. The adjustment to severance and related benefit costs was related to Corporate. The adjustments to costs associated with exit and disposal activities were related to Performance Materials & Coatings. |
SUPPLEMENTARY INFORMATION (Tabl
SUPPLEMENTARY INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of sundry income (expense), net | The following table provides the most significant transactions recorded in "Sundry income (expense) - net" for the three and six months ended June 30, 2018 and 2017: Sundry Income (Expense) - Net Three Months Ended Six Months Ended In millions Jun 30, 2018 Jun 30, 2017 Jun 30, 2018 Jun 30, 2017 Non-operating pension and other postretirement benefit plan net credit 1 $ 113 $ 1 $ 223 $ 2 Interest income $ 51 $ 22 $ 106 $ 47 Gain on sales of other assets and investments 2 $ 35 $ 133 $ 69 $ 137 Adjustment related to Dow Silicones ownership restructure $ (41 ) $ — $ (41 ) $ — Foreign exchange gains (losses), net 3 $ (57 ) $ (30 ) $ (205 ) $ (56 ) Gain related to Nova patent infringement award 4 $ — $ 137 $ — $ 137 Loss related to Dow's Bayer CropScience arbitration matter 4 $ — $ — $ — $ (469 ) 1. Presented in accordance with newly implemented ASU 2017-07. See Notes 1 and 2 for additional information. 2. Includes a $20 million gain in the first quarter of 2018 related to Dow's sale of its equity interest in MEGlobal. 3. Includes a $50 million foreign exchange loss in the first quarter of 2018, related to adjustments to DuPont's foreign currency exchange contracts as a result of U.S. tax reform. 4. See Note 13 for additional information. |
Schedule of cash and cash equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash presented in the consolidated balance sheets to the total cash, cash equivalents and restricted cash presented in the consolidated statements of cash flows: Reconciliation of Cash, Cash Equivalents and Restricted Cash Jun 30, 2018 Dec 31, 2017 Jun 30, 2017 In millions Cash and cash equivalents $ 9,244 $ 13,438 $ 6,218 Restricted cash and cash equivalents 1 561 577 15 Total cash, cash equivalents and restricted cash $ 9,805 $ 14,015 $ 6,233 1. Included in "Other current assets" in the consolidated balance sheets. |
EARNINGS PER SHARE CALCULATIO36
EARNINGS PER SHARE CALCULATIONS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following tables provide earnings per share calculations for the three and six months ended June 30, 2018 and 2017 : Net Income for Earnings Per Share Calculations - Basic Three Months Ended Six Months Ended In millions Jun 30, 2018 Jun 30, 2017 1 Jun 30, 2018 Jun 30, 2017 1 Income from continuing operations, net of tax $ 1,803 $ 1,359 $ 2,956 $ 2,274 Net income attributable to noncontrolling interests (35 ) (38 ) (79 ) (65 ) Net income attributable to participating securities 2 (7 ) (6 ) (13 ) (10 ) Income from continuing operations attributable to common stockholders $ 1,761 $ 1,315 $ 2,864 $ 2,199 Loss from discontinued operations, net of tax — — (5 ) — Net income attributable to common stockholders $ 1,761 $ 1,315 $ 2,859 $ 2,199 Earnings Per Share Calculations - Basic Three Months Ended Six Months Ended Jun 30, 2018 Jun 30, 2017 Jun 30, 2018 Jun 30, 2017 Dollars per share Income from continuing operations attributable to common stockholders $ 0.76 $ 1.08 $ 1.24 $ 1.82 Loss from discontinued operations, net of tax — — — — Net income attributable to common stockholders $ 0.76 $ 1.08 $ 1.24 $ 1.82 Net Income for Earnings Per Share Calculations - Diluted Three Months Ended Six Months Ended Jun 30, 2018 Jun 30, 2017 1 Jun 30, 2018 Jun 30, 2017 1 In millions Income from continuing operations, net of tax $ 1,803 $ 1,359 $ 2,956 $ 2,274 Net income attributable to noncontrolling interests (35 ) (38 ) (79 ) (65 ) Net income attributable to participating securities 2 (7 ) (6 ) (13 ) (10 ) Income from continuing operations attributable to common stockholders $ 1,761 $ 1,315 $ 2,864 $ 2,199 Loss from discontinued operations, net of tax — — (5 ) — Net income attributable to common stockholders $ 1,761 $ 1,315 $ 2,859 $ 2,199 Earnings Per Share Calculations - Diluted Three Months Ended Six Months Ended Jun 30, 2018 Jun 30, 2017 Jun 30, 2018 Jun 30, 2017 Dollars per share Income from continuing operations attributable to common stockholders $ 0.76 $ 1.07 $ 1.23 $ 1.79 Loss from discontinued operations, net of tax — — — — Net income attributable to common stockholders $ 0.76 $ 1.07 $ 1.23 $ 1.79 Share Count Information Three Months Ended Six Months Ended Jun 30, 2018 Jun 30, 2017 Jun 30, 2018 Jun 30, 2017 Shares in millions Weighted-average common shares - basic 2,308.9 1,211.8 2,312.9 1,207.2 Plus dilutive effect of equity compensation plans 14.7 17.2 16.1 18.3 Weighted-average common shares - diluted 2,323.6 1,229.0 2,329.0 1,225.5 Stock options and restricted stock units excluded from EPS calculations 3 9.7 2.2 7.5 1.7 1. Prior period amounts have been updated to conform with the current year presentation. 2. Dow restricted stock units (formerly termed deferred stock) are considered participating securities due to Dow's practice of paying dividend equivalents on unvested shares. 3. These outstanding options to purchase shares of common stock and restricted stock units were excluded from the calculation of diluted earnings per share because the effect of including them would have been antidilutive. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | The following table provides a breakdown of inventories: Inventories Jun 30, 2018 Dec 31, 2017 In millions Finished goods $ 9,303 $ 9,701 Work in process 3,542 4,512 Raw materials 1,478 1,267 Supplies 1,176 1,296 Total $ 15,499 $ 16,776 Adjustment of inventories to a LIFO basis 131 216 Total inventories 1 $ 15,630 $ 16,992 1. In the first quarter of 2018, the Company adopted Topic 606, which resulted in a cumulative effect change to the Company's January 1, 2018 inventory balance. See Note 1 for additional information. |
GOODWILL AND OTHER INTANGIBLE38
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Goodwill Agri-culture Perf. Materials & Coatings Ind. Interm. & Infrast. Pack. & Spec. Plastics Elect. & Imaging Nutrition & Biosciences Transp. & Adv. Polymers Safety & Const. Total In millions Net goodwill at Dec 31, 2017 $ 14,873 $ 3,669 $ 1,101 $ 5,044 $ 8,175 $ 13,200 $ 6,870 $ 6,595 $ 59,527 Measurement period adjustments - Merger 1 6 — — 75 36 34 128 115 394 Measurement period adjustments - H&N Business 1 — — — — — 11 — — 11 Other — 20 — — — (20 ) — — — Foreign currency impact (269 ) (21 ) (3 ) (2 ) (39 ) (120 ) (34 ) (40 ) (528 ) Net goodwill at Jun 30, 2018 $ 14,610 $ 3,668 $ 1,098 $ 5,117 $ 8,172 $ 13,105 $ 6,964 $ 6,670 $ 59,404 1. Final determination of the goodwill value assignment may result in adjustments to the preliminary value recorded. |
Schedule of other finite intangible assets | The following table provides information regarding the Company's other intangible assets: Other Intangible Assets Jun 30, 2018 Dec 31, 2017 In millions Gross Carrying Amount Accum Amort Net Gross Carrying Amount Accum Amort Net Intangible assets with finite lives: Developed technology $ 7,751 $ (2,194 ) $ 5,557 $ 7,627 $ (1,834 ) $ 5,793 Software 1,479 (833 ) 646 1,420 (780 ) 640 Trademarks/tradenames 1,775 (664 ) 1,111 1,814 (596 ) 1,218 Customer-related 14,357 (2,499 ) 11,858 14,537 (2,151 ) 12,386 Microbial cell factories 391 (14 ) 377 397 (6 ) 391 Favorable supply contracts 475 (64 ) 411 495 (17 ) 478 Other 1 621 (183 ) 438 703 (166 ) 537 Total other intangible assets with finite lives $ 26,849 $ (6,451 ) $ 20,398 $ 26,993 $ (5,550 ) $ 21,443 Intangible assets with indefinite lives: In-process research and development 680 — 680 710 — 710 Germplasm 2 6,265 — 6,265 6,265 — 6,265 Trademarks/tradenames 4,759 — 4,759 4,856 — 4,856 Total other intangible assets $ 38,553 $ (6,451 ) $ 32,102 $ 38,824 $ (5,550 ) $ 33,274 1. Primarily consists of sales and grower networks, marketing and manufacturing alliances and noncompetition agreements. 2. Germplasm is the pool of genetic source material and body of knowledge gained from the development and delivery stage of plant breeding. The Company recognized germplasm as an intangible asset upon the Merger. This intangible asset is expected to contribute to cash flows beyond the foreseeable future and there are no legal, regulatory, contractual or other factors which limit its useful life. |
Schedule of other indefinite intangible assets | The following table provides information regarding the Company's other intangible assets: Other Intangible Assets Jun 30, 2018 Dec 31, 2017 In millions Gross Carrying Amount Accum Amort Net Gross Carrying Amount Accum Amort Net Intangible assets with finite lives: Developed technology $ 7,751 $ (2,194 ) $ 5,557 $ 7,627 $ (1,834 ) $ 5,793 Software 1,479 (833 ) 646 1,420 (780 ) 640 Trademarks/tradenames 1,775 (664 ) 1,111 1,814 (596 ) 1,218 Customer-related 14,357 (2,499 ) 11,858 14,537 (2,151 ) 12,386 Microbial cell factories 391 (14 ) 377 397 (6 ) 391 Favorable supply contracts 475 (64 ) 411 495 (17 ) 478 Other 1 621 (183 ) 438 703 (166 ) 537 Total other intangible assets with finite lives $ 26,849 $ (6,451 ) $ 20,398 $ 26,993 $ (5,550 ) $ 21,443 Intangible assets with indefinite lives: In-process research and development 680 — 680 710 — 710 Germplasm 2 6,265 — 6,265 6,265 — 6,265 Trademarks/tradenames 4,759 — 4,759 4,856 — 4,856 Total other intangible assets $ 38,553 $ (6,451 ) $ 32,102 $ 38,824 $ (5,550 ) $ 33,274 1. Primarily consists of sales and grower networks, marketing and manufacturing alliances and noncompetition agreements. 2. Germplasm is the pool of genetic source material and body of knowledge gained from the development and delivery stage of plant breeding. The Company recognized germplasm as an intangible asset upon the Merger. This intangible asset is expected to contribute to cash flows beyond the foreseeable future and there are no legal, regulatory, contractual or other factors which limit its useful life. |
Schedule of amortization expense | The following table provides information regarding amortization expense related to other intangible assets: Amortization Expense Three Months Ended Six Months Ended In millions Jun 30, 2018 Jun 30, 2017 Jun 30, 2018 Jun 30, 2017 Other intangible assets, excluding software $ 488 $ 157 $ 962 $ 312 Software, included in "Cost of sales" $ 25 $ 20 $ 48 $ 40 |
Schedule of estimated future amortization expense | Total estimated amortization expense for 2018 and the five succeeding fiscal years is as follows: Estimated Amortization Expense In millions 2018 $ 1,984 2019 $ 1,926 2020 $ 1,879 2021 $ 1,831 2022 $ 1,753 2023 $ 1,715 |
TRANSFERS OF FINANCIAL ASSETS (
TRANSFERS OF FINANCIAL ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Transfers and Servicing [Abstract] | |
Schedule of Interests Held | The following table summarizes the carrying value of interests held, which represents Dow's maximum exposure to loss related to the receivables sold, and the percentage of anticipated credit losses related to the trade accounts receivable sold. Also provided is the sensitivity of the fair value of the interests held to hypothetical adverse changes in the anticipated credit losses; amounts shown below are the corresponding hypothetical decreases in the carrying value of interests. Interests Held Jun 30, 2018 Dec 31, 2017 In millions Carrying value of interests held $ 24 $ 677 Percentage of anticipated credit losses 36.81 % 2.64 % Impact to carrying value - 10% adverse change $ — $ — Impact to carrying value - 20% adverse change $ — $ 1 |
Schedule of Cash Proceeds | Following is an analysis of certain cash flows between Dow and the conduits: Cash Proceeds Three Months Ended Six Months Ended In millions Jun 30, 2018 Jun 30, 2017 Jun 30, 2018 Jun 30, 2017 Collections reinvested in revolving receivables $ — $ 6,051 $ — $ 11,732 Interests in conduits 1 $ 211 $ 1,363 $ 656 $ 1,914 1. Presented in "Investing Activities" in the consolidated statements of cash flows in accordance with ASU 2016-15. See Notes 1 and 2 for additional information. In connection with the review and implementation of ASU 2016-15, the Company also changed the prior year value of “Interests in conduits” due to additional interpretive guidance of the required method for calculating the cash received from beneficial interests in the conduits. |
Schedule of Trade Accounts Receivable Sold | Following is additional information related to the sale of receivables under these facilities: Trade Accounts Receivable Sold Jun 30, 2018 Dec 31, 2017 In millions Delinquencies on sold receivables still outstanding $ 36 $ 82 Trade accounts receivable outstanding and derecognized $ 36 $ 612 |
COMMITMENTS AND CONTINGENT LI40
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Guarantor Obligations | The following table provides a summary of the final expiration, maximum future payments and recorded liability reflected in the consolidated balance sheets for each type of guarantee: Guarantees Jun 30, 2018 Dec 31, 2017 In millions Final Expiration Maximum Future Payments Recorded Liability Final Expiration Maximum Future Payments Recorded Liability Dow guarantees 2023 $ 4,572 $ 45 2023 $ 4,774 $ 49 Dow residual value guarantees 2027 895 132 2027 889 135 Total Dow guarantees $ 5,467 $ 177 $ 5,663 $ 184 DuPont guarantees 2022 $ 256 $ — 2022 $ 260 $ — DuPont residual value guarantees 2029 36 — 2029 37 — Total DuPont guarantees $ 292 $ — $ 297 $ — Total guarantees $ 5,759 $ 177 $ 5,960 $ 184 |
ACCUMULATED OTHER COMPREHENSI41
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Components of Other Comprehensive Income (Loss) | The following table summarizes the activity related to each component of accumulated other comprehensive loss ("AOCL") for the six months ended June 30, 2018 and 2017 : Accumulated Other Comprehensive Loss 1 Unrealized Gains (Losses) on Investments Cumulative Translation Adj Pension and Other Postretire Benefits Derivative Instruments Total Accum Other Comp Loss In millions Balance at Jan 1, 2017 $ 43 $ (2,381 ) $ (7,389 ) $ (95 ) $ (9,822 ) Other comprehensive income (loss) before reclassifications 38 632 — (73 ) 597 Amounts reclassified from accumulated other comprehensive income (loss) (30 ) (6 ) 203 (16 ) 151 Net other comprehensive income (loss) $ 8 $ 626 $ 203 $ (89 ) $ 748 Balance at Jun 30, 2017 $ 51 $ (1,755 ) $ (7,186 ) $ (184 ) $ (9,074 ) Balance at Jan 1, 2018 2 $ 17 $ (1,935 ) $ (6,923 ) $ (111 ) $ (8,952 ) Other comprehensive income (loss) before reclassifications (41 ) (1,058 ) 9 75 (1,015 ) Amounts reclassified from accumulated other comprehensive income (loss) 2 (2 ) 248 44 292 Net other comprehensive income (loss) $ (39 ) $ (1,060 ) $ 257 $ 119 $ (723 ) Reclassification of stranded tax effects 3 $ (1 ) $ (107 ) $ (927 ) $ (22 ) $ (1,057 ) Balance at Jun 30, 2018 $ (23 ) $ (3,102 ) $ (7,593 ) $ (14 ) $ (10,732 ) 1. Prior period amounts have been updated to conform with the current period presentation. 2. The beginning balance of "Unrealized gains (losses) on investments" was increased by $20 million to reflect the impact of the adoption of ASU 2016-01. See Notes 1 and 2 for additional information. 3. Amounts reclassified to retained earnings as a result of the adoption of ASU 2018-02. See Notes 1 and 2 for additional information. The tax effects on the net activity related to each component of other comprehensive income (loss) for the three and six months ended June 30, 2018 and 2017 were as follows: Tax Benefit (Expense) Three Months Ended Six Months Ended In millions Jun 30, 2018 Jun 30, 2017 Jun 30, 2018 Jun 30, 2017 Unrealized gains (losses) on investments $ (3 ) $ (4 ) $ (9 ) $ 4 Cumulative translation adjustments 25 8 20 26 Pension and other postretirement benefit plans 34 48 60 95 Derivative instruments 17 (7 ) 10 (21 ) Tax benefit from income taxes related to other comprehensive income items $ 73 $ 45 $ 81 $ 104 |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income | A summary of the reclassifications out of AOCL for the three and six months ended June 30, 2018 and 2017 is provided as follows: Reclassifications Out of Accumulated Other Comprehensive Loss Three Months Ended Six Months Ended Consolidated Statements of Income Classification In millions Jun 30, 2018 Jun 30, 2017 Jun 30, 2018 Jun 30, 2017 Unrealized gains (losses) on investments $ 1 $ (35 ) $ 3 $ (47 ) See (1) below Tax expense (benefit) — 13 (1 ) 17 See (2) below After tax $ 1 $ (22 ) $ 2 $ (30 ) Cumulative translation adjustments $ (2 ) $ (6 ) $ (2 ) $ (6 ) See (3) below Pension and other postretirement benefit plans $ 156 $ 149 $ 310 $ 298 See (4) below Tax benefit (34 ) (48 ) (62 ) (95 ) See (2) below After tax $ 122 $ 101 $ 248 $ 203 Derivative Instruments $ 26 $ (8 ) $ 52 $ (15 ) See (5) below Tax benefit (3 ) — (8 ) (1 ) See (2) below After tax $ 23 $ (8 ) $ 44 $ (16 ) Total reclassifications for the period, after tax $ 144 $ 65 $ 292 $ 151 1. "Net sales" and "Sundry income (expense) - net." 2. "Provision for income taxes on continuing operations." 3. "Sundry income (expense) - net." 4. These AOCL components are included in the computation of net periodic benefit cost of the Company's defined benefit pension and other postretirement benefit plans. See Note 16 for additional information. 5. "Cost of sales," "Sundry income (expense) - net" and "Interest expense and amortization of debt discount." |
NONCONTROLLING INTERESTS (Table
NONCONTROLLING INTERESTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Schedule Of Noncontrolling Interest | The following table summarizes the activity for equity attributable to noncontrolling interests for the three and six months ended June 30, 2018 and 2017 : Noncontrolling Interests Three Months Ended Six Months Ended In millions Jun 30, Jun 30, Jun 30, Jun 30, Balance at beginning of period $ 1,664 $ 1,274 $ 1,597 $ 1,242 Net income attributable to noncontrolling interests 35 38 79 65 Distributions to noncontrolling interests 1 (46 ) (27 ) (73 ) (48 ) Noncontrolling interests from Merger 2 — — 56 — Deconsolidation of noncontrolling interests 3 — (119 ) — (119 ) Cumulative translation adjustments (34 ) 3 (40 ) 28 Other 1 (1 ) 1 — Balance at end of period $ 1,620 $ 1,168 $ 1,620 $ 1,168 1. Net of dividends paid to a joint venture, which were reclassified to "Equity in earnings of nonconsolidated affiliates" in the consolidated statements of income, totaled $6 million for the three months ended June 30, 2018 ( $3 million for the three months ended June 30, 2017 ) and $6 million for the six months ended June 30, 2018 ( $3 million for the six months ended June 30, 2017 ). 2. Reflects a measurement period adjustment. See Note 3 for additional information. 3. On June 30, 2017, Dow sold its ownership interest in SKC Haas Display Films group of companies. |
Schedule Of Noncontrolling Interest Represented By Preferred Stock |
PENSION PLANS AND OTHER POSTR43
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of net periodic benefit costs | The following table provides the components of net periodic benefit cost for Dow and DuPont's significant plans: Net Periodic Benefit Cost for All Significant Plans Three Months Ended Six Months Ended In millions Jun 30, 2018 Jun 30, 2017 Jun 30, 2018 Jun 30, 2017 Defined Benefit Pension Plans: Service cost $ 165 $ 126 $ 332 $ 251 Interest cost 406 220 814 439 Expected return on plan assets (705 ) (385 ) (1,414 ) (768 ) Amortization of prior service credit (6 ) (6 ) (12 ) (12 ) Amortization of net loss 169 158 340 315 Curtailment/settlement 1 (4 ) (6 ) (4 ) (6 ) Net periodic benefit cost $ 25 $ 107 $ 56 $ 219 Other Postretirement Benefits: Service cost $ 5 $ 3 $ 10 $ 6 Interest cost 33 13 65 27 Amortization of net gain (6 ) (1 ) (12 ) (3 ) Net periodic benefit cost $ 32 $ 15 $ 63 $ 30 1. The 2018 impact relates to the curtailment and settlement of pension plans in the U.S. and Australia. The 2017 impact relates to the curtailment and settlement of a pension plan in Korea. |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments, All Other Investments [Abstract] | |
Schedule of the fair value of financial instruments | The following table summarizes the fair value of financial instruments at June 30, 2018 and December 31, 2017 : Fair Value of Financial Instruments Jun 30, 2018 Dec 31, 2017 In millions Cost Gain Loss Fair Value Cost Gain Loss Fair Value Cash equivalents 1 $ 4,279 $ — $ — $ 4,279 $ 6,927 $ — $ — $ 6,927 Restricted cash equivalents 1, 2 $ 516 $ — $ — $ 516 $ 558 $ — $ — $ 558 Marketable securities: Available-for-sale 3 $ 131 $ 2 $ — $ 133 $ 4 $ — $ — $ 4 Held-to-maturity 1, 4 374 — — 374 952 — — 952 Total marketable securities $ 505 $ 2 $ — $ 507 $ 956 $ — $ — $ 956 Other investments: Debt securities: Government debt 5 $ 678 $ 8 $ (24 ) $ 662 $ 637 $ 13 $ (11 ) $ 639 Corporate bonds 913 22 (28 ) 907 704 32 (3 ) 733 Total debt securities $ 1,591 $ 30 $ (52 ) $ 1,569 $ 1,341 $ 45 $ (14 ) $ 1,372 Equity securities 6 $ 154 $ 20 $ (13 ) $ 161 $ 164 $ 2 $ (26 ) $ 140 Total other investments $ 1,745 $ 50 $ (65 ) $ 1,730 $ 1,505 $ 47 $ (40 ) $ 1,512 Total cash and restricted cash equivalents, marketable securities and other investments $ 7,045 $ 52 $ (65 ) $ 7,032 $ 9,946 $ 47 $ (40 ) $ 9,953 Long-term debt including debt due within one year 7 $ (31,456 ) $ 467 $ (1,312 ) $ (32,301 ) $ (32,123 ) $ 69 $ (2,121 ) $ (34,175 ) Derivatives relating to: Interest rates $ — $ — $ (39 ) $ (39 ) $ — $ — $ (4 ) $ (4 ) Commodities 8 — 163 (212 ) (49 ) — 130 (256 ) (126 ) Foreign currency — 301 (79 ) 222 — 31 (159 ) (128 ) Total derivatives $ — $ 464 $ (330 ) $ 134 $ — $ 161 $ (419 ) $ (258 ) 1. Prior period amounts were updated to conform with the current year presentation. 2. Classified as "Other current assets" in the consolidated balance sheets. 3. Available-for-sale securities with maturities of less than one year at the time of purchase. 4. Held-to-maturity securities with maturities of more than three months to less than one year at the time of purchase. 5. U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. 6. Equity securities with a readily determinable fair value. Presented in accordance with ASU 2016-01. See Notes 1 and 2 for additional information. 7. Cost includes fair value adjustments of $419 million at June 30, 2018 and $492 million at December 31, 2017 , related to the accounting for the Merger. Cost also includes fair value hedge adjustments of $18 million at June 30, 2018 and $19 million at December 31, 2017 on $2,990 million of debt. 8. Presented net of cash collateral. |
Schedule of investing results | The Company's investments in debt securities are primarily classified as available-for-sale. The following table provides the investing results from available-for-sale securities for the six months ended June 30, 2018 and 2017 : Investing Results 1 Six Months Ended In millions Jun 30, 2018 Jun 30, 2017 Proceeds from sales of available-for-sale securities $ 625 $ 132 Gross realized gains $ 15 $ 3 Gross realized losses $ (18 ) $ — 1. Prior year amounts were updated to conform with the current year presentation as a result of the adoption of ASU 2016-01. |
Schedule of fair value of derivative instruments using Level 2 inputs | The following tables provide the fair value and balance sheet classification of derivative instruments at June 30, 2018 and December 31, 2017 : Fair Value of Derivative Instruments Jun 30, 2018 In millions Balance Sheet Classification Gross Counterparty and Cash Collateral Netting 1 Net Amounts Included in the Consolidated Balance Sheet Asset derivatives: Derivatives designated as hedging instruments: Interest rate swaps Deferred charges and other assets $ 1 $ (1 ) $ — Foreign currency contracts Other current assets 158 (42 ) 116 Commodity contracts Other current assets 53 (4 ) 49 Commodity contracts Deferred charges and other assets 104 (2 ) 102 Total $ 316 $ (49 ) $ 267 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets $ 282 $ (97 ) $ 185 Commodity contracts Other current assets 11 (4 ) 7 Commodity contracts Deferred charges and other assets 6 (1 ) 5 Total $ 299 $ (102 ) $ 197 Total asset derivatives $ 615 $ (151 ) $ 464 Liability derivatives: Derivatives designated as hedging instruments: Interest rate swaps Other noncurrent obligations $ 40 $ (1 ) $ 39 Foreign currency contracts Accrued and other current liabilities 44 (42 ) 2 Commodity contracts Accrued and other current liabilities 94 (5 ) 89 Commodity contracts Other noncurrent obligations 115 (2 ) 113 Total $ 293 $ (50 ) $ 243 Derivatives not designated as hedging instruments: Foreign currency contracts Accrued and other current liabilities $ 130 $ (53 ) $ 77 Commodity contracts Accrued and other current liabilities 6 (4 ) 2 Commodity contracts Other noncurrent obligations 9 (1 ) 8 Total $ 145 $ (58 ) $ 87 Total liability derivatives $ 438 $ (108 ) $ 330 1. Counterparty and cash collateral amounts represent the estimated net settlement amount when applying netting and set-off rights included in master netting arrangements between the Company and its counterparties and the payable or receivable for cash collateral held or placed with the same counterparty. Fair Value of Derivative Instruments Dec 31, 2017 In millions Balance Sheet Classification Gross Counterparty and Cash Collateral Netting 1 Net Amounts Included in the Consolidated Balance Sheet Asset derivatives: Derivatives designated as hedging instruments: Foreign currency contracts Other current assets $ 51 $ (46 ) $ 5 Commodity contracts Other current assets 20 (4 ) 16 Commodity contracts Deferred charges and other assets 70 (5 ) 65 Total $ 141 $ (55 ) $ 86 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets $ 121 $ (95 ) $ 26 Commodity contracts Other current assets 50 (5 ) 45 Commodity contracts Deferred charges and other assets 7 (3 ) 4 Total $ 178 $ (103 ) $ 75 Total asset derivatives $ 319 $ (158 ) $ 161 Liability derivatives: Derivatives designated as hedging instruments: Interest rate swaps Other noncurrent obligations $ 4 $ — $ 4 Foreign currency contracts Accrued and other current liabilities 109 (46 ) 63 Commodity contracts Accrued and other current liabilities 96 (15 ) 81 Commodity contracts Other noncurrent obligations 143 (12 ) 131 Total $ 352 $ (73 ) $ 279 Derivatives not designated as hedging instruments: Foreign currency contracts Accrued and other current liabilities $ 186 $ (90 ) $ 96 Commodity contracts Accrued and other current liabilities 45 (6 ) 39 Commodity contracts Other noncurrent obligations 8 (3 ) 5 Total $ 239 $ (99 ) $ 140 Total liability derivatives $ 591 $ (172 ) $ 419 1. Counterparty and cash collateral amounts represent the estimated net settlement amount when applying netting and set-off rights included in master netting arrangements between the Company and its counterparties and the payable or receivable for cash collateral held or placed with the same counterparty. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of the fair value of assets and liabilities measured on a recurring basis | The following tables summarize the bases used to measure certain assets and liabilities at fair value on a recurring basis: Basis of Fair Value Measurements on a Recurring Basis at Jun 30, 2018 Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total In millions Assets at fair value: Cash equivalents and restricted cash equivalents 1 $ — $ 4,795 $ — $ 4,795 Marketable securities 2 — 507 — 507 Interests in trade accounts receivable conduits 3 — — 24 24 Equity securities 4 22 139 — 161 Debt securities: 4 Government debt 5 — 662 — 662 Corporate bonds — 907 — 907 Derivatives relating to: 6 Interest rates — 1 — 1 Commodities 39 135 — 174 Foreign currency — 440 — 440 Total assets at fair value $ 61 $ 7,586 $ 24 $ 7,671 Liabilities at fair value: Long-term debt including debt due within one year 7 $ — $ 32,301 $ — $ 32,301 Derivatives relating to: 6 Interest rates — 40 — 40 Commodities 20 204 — 224 Foreign currency — 174 — 174 Total liabilities at fair value $ 20 $ 32,719 $ — $ 32,739 1. Treasury bills, time deposits, and money market funds included in "Cash and cash equivalents" and money market funds included in "Other current assets" in the consolidated balance sheets and held at amortized cost, which approximates fair value. 2. Primarily time deposits with maturities of greater than three months at time of acquisition. 3. Included in "Accounts and notes receivable - Other" in the consolidated balance sheets. See Note 11 for additional information on transfers of financial assets. 4. The Company’s investments in debt securities, which are primarily available-for-sale, and equity securities are included in “Other investments” in the consolidated balance sheets. 5. U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. 6. See Note 18 for the classification of derivatives in the consolidated balance sheets. 7. See Note 18 for information on fair value measurements of long-term debt. Basis of Fair Value Measurements on a Recurring Basis at Dec 31, 2017 Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total In millions Assets at fair value: Cash equivalents and restricted cash equivalents 1 $ — $ 7,485 $ — $ 7,485 Marketable securities 2 — 956 — 956 Interests in trade accounts receivable conduits 3 — — 677 677 Equity securities 4 88 52 — 140 Debt securities: 4 Government debt 5 — 639 — 639 Corporate bonds — 733 — 733 Derivatives relating to: 6 Commodities 47 100 — 147 Foreign currency — 172 — 172 Total assets at fair value $ 135 $ 10,137 $ 677 $ 10,949 Liabilities at fair value: Long-term debt including debt due within one year 7 $ — $ 34,175 $ — $ 34,175 Derivatives relating to: 6 Interest rates — 4 — 4 Commodities 31 261 — 292 Foreign currency — 295 — 295 Total liabilities at fair value $ 31 $ 34,735 $ — $ 34,766 1. Treasury bills, time deposits, and money market funds included in "Cash and cash equivalents" and money market funds included in "Other current assets" in the consolidated balance sheets and held at amortized cost, which approximates fair value. 2. Primarily time deposits with maturities of greater than three months at time of acquisition. 3. Included in "Accounts and notes receivable - Other" in the consolidated balance sheets. See Note 11 for additional information on transfers of financial assets. 4. The Company’s investments in debt securities, which are primarily available-for-sale, and equity securities are included in “Other investments” in the consolidated balance sheets. 5. U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. 6. See Note 18 for the classification of derivatives in the consolidated balance sheets. 7. See Note 18 for information on fair value measurements of long-term debt. |
Schedule of fair value measurements using Level 3 inputs | The following table summarizes the changes in fair value measurements of interests held in trade receivable conduits using Level 3 inputs for the three and six months ended June 30, 2018 and 2017: Fair Value Measurements Using Level 3 Inputs for Interests Held in Trade Receivable Conduits 1 Three Months Ended Six Months Ended Jun 30, 2018 Jun 30, 2017 Jun 30, 2018 Jun 30, 2017 In millions Balance at beginning of period $ 234 $ 1,663 $ 677 $ 1,237 Gain (loss) included in earnings 2 1 (2 ) 3 (2 ) Purchases 3 — 1,386 — 2,363 Settlements 3 (211 ) (1,363 ) (656 ) (1,914 ) Balance at end of period $ 24 $ 1,684 $ 24 $ 1,684 1. Included in "Accounts and notes receivable - Other" in the consolidated balance sheets. 2. Included in "Selling, general and administrative expenses" in the consolidated statements of income. 3. Presented in accordance with ASU 2016-15. See Notes 1 and 2 for additional information. In connection with the review and implementation of ASU 2016-15, the Company also changed the prior year value of “Purchases” and "Settlements" due to additional interpretive guidance of the required method for calculating the cash received from beneficial interests in the conduits. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure [Member] | |
Variable Interest Entity [Line Items] | |
Schedule of assets and liabilities of Consolidated VIEs | The following table summarizes the carrying amounts of these entities’ assets and liabilities included in the Company’s consolidated balance sheets at June 30, 2018 and December 31, 2017 : Assets and Liabilities of Consolidated VIEs Jun 30, 2018 Dec 31, 2017 In millions Cash and cash equivalents $ 116 $ 107 Other current assets 129 131 Net property 786 907 Other noncurrent assets 47 50 Total assets 1 $ 1,078 $ 1,195 Current liabilities $ 325 $ 303 Long-Term debt 147 249 Other noncurrent obligations 35 41 Total liabilities 2 $ 507 $ 593 1. All assets were restricted at June 30, 2018 and December 31, 2017 . 2. All liabilities were nonrecourse at June 30, 2018 and December 31, 2017 . |
VARIABLE INTEREST ENTITIES Nonc
VARIABLE INTEREST ENTITIES Nonconsolidated Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member] | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities [Table Text Block] | The Company's maximum exposure to loss is the same as the carrying amounts, unless otherwise noted below. Carrying Amounts of Assets and Liabilities Related to Nonconsolidated VIEs Jun 30, Dec 31, In millions Description of asset or liability Hemlock Semiconductor L.L.C. Equity method investment 1 $ (717 ) $ (752 ) Silicon joint ventures Equity method investments 2 $ 102 $ 103 AgroFresh Solutions, Inc Equity method investment 2 $ 42 $ 51 Other receivable 3 $ — $ 4 1. Classified as "Other noncurrent obligations" in the consolidated balance sheets. The Company's maximum exposure to loss was zero at June 30, 2018 ( zero at December 31, 2017 ). 2. Classified as "Investment in nonconsolidated affiliates" in the consolidated balance sheets. 3. Classified as "Accounts and notes receivable - Other" in the consolidated balance sheets. |
SEGMENTS AND GEOGRAPHIC REGIO48
SEGMENTS AND GEOGRAPHIC REGIONS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segment Information | Segment Information Agri-culture Perf. Materials & Coatings Ind. Interm. & Infrast. Pack. & Spec. Plastics Elect. & Imaging Nutrition & Biosciences Transp. & Adv. Polymers Safety & Const. Corp. Total In millions Three months ended Jun 30, 2018 Net sales $ 5,730 $ 2,599 $ 3,885 $ 6,099 $ 1,203 $ 1,775 $ 1,468 $ 1,411 $ 75 $ 24,245 Operating EBITDA 1 $ 1,685 $ 569 $ 682 $ 1,330 $ 372 $ 433 $ 446 $ 341 $ (182 ) $ 5,676 Equity in earnings (losses) of nonconsolidated affiliates $ 3 $ 36 $ 96 $ 108 $ 6 $ 5 $ 1 $ 8 $ (13 ) $ 250 Three months ended Jun 30, 2017 Net sales $ 1,629 $ 2,273 $ 3,015 $ 5,079 $ 677 $ 277 $ 298 $ 490 $ 96 $ 13,834 Pro forma net sales $ 4,595 $ 2,255 $ 3,013 $ 5,428 $ 1,221 $ 1,494 $ 1,284 $ 1,329 $ 98 $ 20,717 Pro forma Operating EBITDA 2 $ 1,165 $ 540 $ 417 $ 1,163 $ 410 $ 318 $ 308 $ 262 $ (190 ) $ 4,393 Equity in earnings (losses) of nonconsolidated affiliates $ 2 $ 41 $ (13 ) $ 33 $ — $ 2 $ — $ — $ (11 ) $ 54 Six months ended Jun 30, 2018 Net sales $ 9,538 $ 4,903 $ 7,600 $ 12,109 $ 2,356 $ 3,495 $ 2,893 $ 2,710 $ 151 $ 45,755 Operating EBITDA 1 $ 2,576 $ 1,197 $ 1,336 $ 2,631 $ 729 $ 851 $ 883 $ 695 $ (351 ) $ 10,547 Equity in earnings (losses) of nonconsolidated affiliates $ 2 $ 77 $ 245 $ 167 $ 13 $ 8 $ 4 $ 13 $ (22 ) $ 507 Six months ended Jun 30, 2017 Net sales $ 3,197 $ 4,352 $ 5,866 $ 10,104 $ 1,332 $ 534 $ 588 $ 924 $ 167 $ 27,064 Pro forma net sales $ 9,644 $ 4,318 $ 5,860 $ 10,810 $ 2,385 $ 2,918 $ 2,535 $ 2,542 $ 172 $ 41,184 Pro forma Operating EBITDA 2 $ 2,626 $ 1,021 $ 929 $ 2,277 $ 737 $ 635 $ 629 $ 554 $ (401 ) $ 9,007 Equity in earnings (losses) of nonconsolidated affiliates $ 4 $ 132 $ 60 $ 66 $ — $ 6 $ — $ — $ (18 ) $ 250 1. A reconciliation of "Income from continuing operations, net of tax" to Operating EBITDA is provided on the following page. 2. A reconciliation of "Income from continuing operations, net of tax" to pro forma Operating EBITDA is provided on the following page. |
Reconciliation of Income from Continuing Operations, net of tax to Pro Forma Operating EBITDA | Reconciliation of "Income from continuing operations, net of tax" to Operating EBITDA for the Three and Six Months Ended Jun 30, 2018 Three Months Ended Six Months Ended In millions Jun 30, 2018 Jun 30, 2018 Income from continuing operations, net of tax $ 1,803 $ 2,956 + Provision for income taxes on continuing operations 565 954 Income from continuing operations before income taxes $ 2,368 $ 3,910 + Depreciation and amortization 1,496 2,980 - Interest income 1 51 106 + Interest expense and amortization of debt discount 360 710 - Foreign exchange gains (losses), net 1, 2 (57 ) (155 ) - Significant items (1,446 ) (2,898 ) Operating EBITDA $ 5,676 $ 10,547 1. Included in "Sundry income (expense) - net." 2. Excludes a $50 million pretax foreign exchange loss significant item related to adjustments to DuPont's foreign currency exchange contracts as a result of U.S. tax reform during the six months ended June 30, 2018. Reconciliation of "Income from continuing operations, net of tax" to Pro Forma Operating EBITDA for the Three and Six Months Ended Jun 30, 2017 Three Months Ended Six Months Ended In millions Jun 30, 2017 Jun 30, 2017 Income from continuing operations, net of tax $ 1,359 $ 2,274 + Provision for income taxes on continuing operations 455 668 Income from continuing operations before income taxes $ 1,814 $ 2,942 + Depreciation and amortization 739 1,517 - Interest income 1 22 47 + Interest expense and amortization of debt discount 226 445 - Foreign exchange gains (losses), net 1 (30 ) (56 ) + Pro forma adjustments 1,284 3,045 - Adjusted significant items 2 (322 ) (1,049 ) Pro forma Operating EBITDA $ 4,393 $ 9,007 1. Included in "Sundry income (expense) - net." 2. Adjusted significant items, excluding the impact of one-time transaction costs directly attributable to the Merger and reflected in the pro forma adjustments. |
Schedule of Certain Items by Segment | The following tables summarize the pretax impact of significant items and adjusted significant items by segment that are excluded from Operating EBITDA and pro forma Operating EBITDA above: Significant Items by Segment for the Three Months Ended Jun 30, 2018 Agri-culture Perf. Materials & Coatings Ind. Interm. & Infrast. Pack. & Spec. Plastics Elect. & Imaging Nutrition & Biosciences Transp. & Adv. Polymers Safety & Const. Corp. Total In millions Net loss on divestiture and change in joint venture ownership 1 $ 24 $ (41 ) $ — $ — $ — $ — $ — $ — $ — $ (17 ) Integration and separation costs 2 — — — — — — — — (558 ) (558 ) Inventory step-up amortization 3 (676 ) — — (2 ) — (4 ) — — — (682 ) Restructuring and asset related charges (credits) - net 4 (37 ) (15 ) — (3 ) (1 ) — — (12 ) (121 ) (189 ) Total $ (689 ) $ (56 ) $ — $ (5 ) $ (1 ) $ (4 ) $ — $ (12 ) $ (679 ) $ (1,446 ) 1. Includes a gain related to Agriculture asset sales and a loss related to post-closing adjustments related to the Dow Silicones ownership restructure. 2. Integration and separation costs related to the Merger, post-Merger integration and Intended Business Separation activities, and costs related to the ownership restructure of Dow Silicones. 3. Includes the fair value step-up of DuPont's inventories as a result of the Merger and the acquisition of the H&N Business. See Note 3 for additional information. 4. Includes Board approved restructuring plans and asset related charges, which include other asset impairments. See Note 5 for additional information. Adjusted Significant Items by Segment for the Three Months Ended Jun 30, 2017 Agri-culture Perf. Materials & Coatings Ind. Interm. & Infrast. Pack. & Spec. Plastics Elect. & Imaging Nutrition & Biosciences Transp. & Adv. Polymers Safety & Const. Corp. Total In millions Gain on divestiture 1 $ — $ — $ — $ — $ — $ — $ — $ — $ 7 $ 7 Integration and separation costs 2 — — — — — — — — (296 ) (296 ) Litigation related charges, awards and adjustments 3 — — — 137 — — — — — 137 Restructuring and asset related charges (credits) - net 4 — 3 — — (1 ) — (2 ) (157 ) 9 (148 ) Transaction costs and productivity actions 5 — — — — — — — — (22 ) (22 ) Total $ — $ 3 $ — $ 137 $ (1 ) $ — $ (2 ) $ (157 ) $ (302 ) $ (322 ) 1. Includes post-closing adjustments on the split-off of Dow's chlorine value chain. 2. Integration and separation costs related to the Merger and the ownership restructure of Dow Silicones. 3. Includes a patent infringement matter with Nova Chemicals Corporation. See Note 13 for additional information. 4. Includes Board approved restructuring plans and asset related charges, which includes other asset impairments. See Note 5 for additional information. 5. Includes implementation costs associated with Dow's restructuring programs and other productivity actions. Significant Items by Segment for the Six Months Ended Jun 30, 2018 Agri-culture Perf. Materials & Coatings Ind. Interm. & Infrast. Pack. & Spec. Plastics Elect. & Imaging Nutrition & Biosciences Transp. & Adv. Polymers Safety & Const. Corp. Total In millions Net gain on divestitures and change in joint venture ownership 1 $ 24 $ (41 ) $ 20 $ — $ — $ — $ — $ — $ — $ 3 Integration and separation costs 2 — — — — — — — — (1,015 ) (1,015 ) Inventory step-up amortization 3 (1,315 ) — — (2 ) — (67 ) — (1 ) — (1,385 ) Restructuring and asset related charges (credits) - net 4 (95 ) (14 ) (11 ) (9 ) (2 ) — 1 (19 ) (302 ) (451 ) Income tax related item 5 — — — — — — — — (50 ) (50 ) Total $ (1,386 ) $ (55 ) $ 9 $ (11 ) $ (2 ) $ (67 ) $ 1 $ (20 ) $ (1,367 ) $ (2,898 ) 1. Includes a gain related to Dow's sale of its equity interest in MEGlobal, a gain related to Agriculture asset sales and a loss related to post-closing adjustments on the Dow Silicones ownership restructure. 2. Integration and separation costs related to the Merger, post-Merger integration and Intended Business Separation activities, and costs related to the ownership restructure of Dow Silicones. 3. Includes the fair value step-up of DuPont's inventories as a result of the Merger and the acquisition of the H&N Business. See Note 3 for additional information. 4. Includes Board approved restructuring plans and asset related charges, which include other asset impairments. See Note 5 for additional information. 5. Includes a foreign exchange loss related to adjustments to DuPont's foreign currency exchange contracts as a result of U.S. tax reform. Adjusted Significant Items by Segment for the Six Months Ended Jun 30, 2017 Agri-culture Perf. Materials & Coatings Ind. Interm. & Infrast. Pack. & Spec. Plastics Elect. & Imaging Nutrition & Biosciences Transp. & Adv. Polymers Safety & Const. Corp. Total In millions Gains on divestitures 1 $ — $ — $ — $ — $ — $ 162 $ — $ — $ 7 $ 169 Integration and separation costs 2 — — — — — — — — (538 ) (538 ) Litigation related charges, awards and adjustments 3 (469 ) — — 137 — — — — — (332 ) Restructuring and asset related charges (credits) - net 4 — 3 — — (3 ) (6 ) (4 ) (265 ) (25 ) (300 ) Transaction costs and productivity actions 5 — — — — — — — — (48 ) (48 ) Total $ (469 ) $ 3 $ — $ 137 $ (3 ) $ 156 $ (4 ) $ (265 ) $ (604 ) $ (1,049 ) 1. Includes the sale of DuPont's global food safety diagnostic business and post-closing adjustments on the split-off of Dow's chlorine value chain. 2. Integration and separation costs related to the Merger and the ownership restructure of Dow Silicones. 3. Includes an arbitration matter with Bayer CropScience and a patent infringement matter with Nova Chemicals Corporation. See Note 13 for additional information. 4. Includes Board approved restructuring plans and asset related charges, which includes other asset impairments. See Note 5 for additional information. 5. Includes implementation costs associated with Dow's restructuring programs and other productivity actions. |
CONSOLIDATED FINANCIAL STATEM49
CONSOLIDATED FINANCIAL STATEMENTS - Summary of Changes to the Consolidated Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Cost of sales | $ (17,974) | $ (10,761) | $ (34,289) | $ (20,955) |
Research and development expenses | 803 | 408 | 1,571 | 827 |
Selling, general and administrative expenses | (1,933) | (720) | (3,647) | (1,479) |
Integration and separation costs | 558 | 136 | 1,015 | 245 |
Sundry income (expense) - net | 178 | 322 | 293 | (122) |
Sundry income (expense) - net | $ (51) | (22) | $ (106) | (47) |
Adjustments for New Accounting Pronouncement [Member] | ||||
Cost of sales | 2 | 5 | ||
Research and development expenses | 3 | 6 | ||
Selling, general and administrative expenses | 0 | (1) | ||
Integration and separation costs | 0 | 0 | ||
Sundry income (expense) - net | 1 | 2 | ||
As Filed | ||||
Cost of sales | (10,764) | (20,961) | ||
Research and development expenses | 405 | 821 | ||
Selling, general and administrative expenses | (855) | (1,722) | ||
Integration and separation costs | 0 | 0 | ||
Sundry income (expense) - net | 299 | (171) | ||
Sundry income (expense) - net | (22) | (47) | ||
Scenario, Adjustment [Member] | ||||
Cost of sales | (1) | (1) | ||
Selling, general and administrative expenses | (135) | (244) | ||
Integration and separation costs | 136 | 245 | ||
Sundry income (expense) - net | 22 | 47 | ||
Sundry income (expense) - net | $ (22) | $ (47) |
CONSOLIDATED FINANCIAL STATEM50
CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS - Summary of changes to Cash Flow Statements (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net periodic pension benefit cost | $ 56 | $ 219 | ||
Gain (Loss) on Disposition of Assets | 67 | 190 | ||
Gain (Loss) on Sale of Investments | 0 | |||
Gain (Loss) On Disposition Of Assets and Disposition Of Business | 0 | |||
Equity Method Investment, Realized Gain (Loss) on Disposal | 0 | |||
Other Noncash Income (Expense) | (425) | (252) | ||
Increase (Decrease) in Accounts Receivable from Securitization | 0 | |||
Increase (Decrease) in Accounts and Notes Receivable | 4,454 | 3,233 | ||
Increase (Decrease) in Accounts Payable | 65 | 826 | ||
Increase (Decrease) in Other Operating Assets and Liabilities, Net | 3,175 | 883 | ||
Net Cash Provided by (Used in) Operating Activities | (47) | (101) | ||
Settlement amount | 0 | |||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 31 | ||
Proceeds from Sale and Collection of Finance Receivables | 656 | 1,914 | ||
Net Cash Provided by (Used in) Investing Activities | (390) | 192 | ||
Payment for Contingent Consideration Liability, Financing Activities | 31 | |||
Net Cash Provided by (Used in) Financing Activities | (3,602) | (690) | ||
Decrease in cash, cash equivalents and restricted cash | (4,210) | (391) | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 9,805 | 6,233 | $ 14,015 | $ 6,624 |
As Filed | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net periodic pension benefit cost | 0 | |||
Gain (Loss) on Disposition of Assets | 0 | |||
Gain (Loss) on Sale of Investments | (53) | |||
Gain (Loss) On Disposition Of Assets and Disposition Of Business | (135) | |||
Equity Method Investment, Realized Gain (Loss) on Disposal | (2) | |||
Other Noncash Income (Expense) | (75) | |||
Increase (Decrease) in Accounts Receivable from Securitization | 804 | |||
Increase (Decrease) in Accounts and Notes Receivable | 2,123 | |||
Increase (Decrease) in Accounts Payable | 620 | |||
Increase (Decrease) in Other Operating Assets and Liabilities, Net | (279) | |||
Net Cash Provided by (Used in) Operating Activities | 1,815 | |||
Settlement amount | 130 | |||
Payment from escrow account | (130) | |||
Payments to Acquire Businesses, Net of Cash Acquired | 31 | |||
Proceeds from Sale and Collection of Finance Receivables | 0 | |||
Net Cash Provided by (Used in) Investing Activities | (1,753) | |||
Payment for Contingent Consideration Liability, Financing Activities | 0 | |||
Net Cash Provided by (Used in) Financing Activities | (659) | |||
Decrease in cash, cash equivalents and restricted cash | (389) | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 6,218 | 6,607 | ||
Scenario, Adjustment [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net periodic pension benefit cost | 219 | |||
Gain (Loss) on Disposition of Assets | 190 | |||
Gain (Loss) on Sale of Investments | 53 | |||
Gain (Loss) On Disposition Of Assets and Disposition Of Business | 135 | |||
Equity Method Investment, Realized Gain (Loss) on Disposal | 2 | |||
Other Noncash Income (Expense) | (177) | |||
Increase (Decrease) in Accounts Receivable from Securitization | 0 | |||
Increase (Decrease) in Accounts and Notes Receivable | 0 | |||
Increase (Decrease) in Accounts Payable | 206 | |||
Increase (Decrease) in Other Operating Assets and Liabilities, Net | 602 | |||
Adjustments for New Accounting Pronouncement [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net periodic pension benefit cost | 0 | |||
Gain (Loss) on Disposition of Assets | 0 | |||
Gain (Loss) on Sale of Investments | 0 | |||
Gain (Loss) On Disposition Of Assets and Disposition Of Business | 0 | |||
Equity Method Investment, Realized Gain (Loss) on Disposal | 0 | |||
Other Noncash Income (Expense) | 0 | |||
Increase (Decrease) in Accounts Receivable from Securitization | (804) | |||
Increase (Decrease) in Accounts and Notes Receivable | 1,110 | |||
Increase (Decrease) in Accounts Payable | 0 | |||
Increase (Decrease) in Other Operating Assets and Liabilities, Net | 2 | |||
Net Cash Provided by (Used in) Operating Activities | (1,916) | |||
Settlement amount | 130 | |||
Payment from escrow account | (130) | |||
Payments to Acquire Businesses, Net of Cash Acquired | 31 | |||
Proceeds from Sale and Collection of Finance Receivables | 1,914 | |||
Net Cash Provided by (Used in) Investing Activities | 1,945 | |||
Payment for Contingent Consideration Liability, Financing Activities | (31) | |||
Net Cash Provided by (Used in) Financing Activities | (31) | |||
Decrease in cash, cash equivalents and restricted cash | (2) | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 15 | $ 17 |
CONSOLIDATED FINANCIAL STATEM51
CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS - Changes to Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Trade (net of allowance for doubtful receivables - 2018: $156; 2017: $127) | $ 15,379 | $ 11,401 | $ 11,314 | ||||
Other | 4,924 | 5,571 | 5,579 | ||||
Inventories | 15,630 | [1] | 16,928 | 16,992 | [1] | ||
Other current assets | 2,213 | 1,775 | 1,614 | ||||
Assets, Current | 47,897 | 50,069 | 49,893 | ||||
Deferred income tax assets | 1,701 | 1,905 | 1,869 | ||||
Deferred charges and other assets | 2,709 | 2,817 | 2,774 | ||||
Assets, Noncurrent, Other than Noncurrent Investments and Property, Plant and Equipment | 95,916 | 97,523 | 97,444 | ||||
Assets | 187,367 | 192,419 | 192,164 | ||||
Trade | 7,983 | 9,131 | 9,134 | ||||
Other | 4,662 | 3,737 | 3,727 | ||||
Income taxes payable | 874 | 841 | 843 | ||||
Accrued and other current liabilities | 7,191 | 8,580 | 8,409 | ||||
Liabilities, Current | 28,110 | 26,304 | 26,128 | ||||
Deferred income tax liabilities | 5,885 | 6,269 | 6,266 | ||||
Other noncurrent obligations | 7,767 | 8,086 | 7,969 | ||||
Liabilities, Other than Long-term Debt, Noncurrent | 32,525 | 34,173 | 34,053 | ||||
Retained earnings | 30,432 | 29,150 | 29,211 | ||||
Accumulated other comprehensive loss | (10,732) | (8,952) | (8,972) | ||||
Stockholders' Equity Attributable to Parent | 98,262 | 100,289 | 100,330 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 99,882 | 101,886 | 101,927 | $ 29,589 | $ 27,229 | ||
Liabilities and Equity | 187,367 | 192,419 | 192,164 | ||||
As Filed | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Trade (net of allowance for doubtful receivables - 2018: $156; 2017: $127) | 11,314 | ||||||
Other | 5,579 | ||||||
Inventories | 16,992 | ||||||
Other current assets | 1,614 | ||||||
Assets, Current | 49,893 | ||||||
Deferred income tax assets | 1,869 | ||||||
Deferred charges and other assets | 2,774 | ||||||
Assets, Noncurrent, Other than Noncurrent Investments and Property, Plant and Equipment | 97,444 | ||||||
Assets | 192,164 | ||||||
Trade | 9,134 | ||||||
Other | 3,727 | ||||||
Income taxes payable | 843 | ||||||
Accrued and other current liabilities | 8,409 | ||||||
Liabilities, Current | 26,128 | ||||||
Deferred income tax liabilities | 6,266 | ||||||
Other noncurrent obligations | 7,969 | ||||||
Liabilities, Other than Long-term Debt, Noncurrent | 34,053 | ||||||
Retained earnings | 29,211 | ||||||
Accumulated other comprehensive loss | (8,972) | ||||||
Stockholders' Equity Attributable to Parent | 100,330 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 101,927 | ||||||
Liabilities and Equity | $ 192,164 | ||||||
Other Current Assets [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Other current assets | 61 | ||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Trade (net of allowance for doubtful receivables - 2018: $156; 2017: $127) | (177) | 87 | |||||
Other | 27 | (8) | |||||
Inventories | 81 | (64) | |||||
Other current assets | (155) | 130 | |||||
Assets, Current | (224) | 145 | |||||
Deferred income tax assets | (28) | 26 | |||||
Deferred charges and other assets | (43) | 43 | |||||
Assets, Noncurrent, Other than Noncurrent Investments and Property, Plant and Equipment | (71) | 69 | |||||
Assets | (295) | 214 | |||||
Trade | (3) | ||||||
Other | (10) | 10 | |||||
Income taxes payable | 2 | (2) | |||||
Accrued and other current liabilities | (187) | 171 | |||||
Liabilities, Current | (195) | 176 | |||||
Deferred income tax liabilities | (11) | 3 | |||||
Other noncurrent obligations | (134) | 117 | |||||
Liabilities, Other than Long-term Debt, Noncurrent | (145) | 120 | |||||
Retained earnings | 45 | (82) | |||||
Accumulated other comprehensive loss | 0 | ||||||
Stockholders' Equity Attributable to Parent | 45 | (82) | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 45 | (82) | |||||
Liabilities and Equity | $ (295) | 214 | |||||
Accounting Standards Update 2016-01 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Trade (net of allowance for doubtful receivables - 2018: $156; 2017: $127) | 0 | ||||||
Other | 0 | ||||||
Inventories | 0 | ||||||
Other current assets | 0 | ||||||
Assets, Current | 0 | ||||||
Deferred income tax assets | 0 | ||||||
Deferred charges and other assets | 0 | ||||||
Assets, Noncurrent, Other than Noncurrent Investments and Property, Plant and Equipment | 0 | ||||||
Assets | 0 | ||||||
Trade | 0 | ||||||
Other | 0 | ||||||
Income taxes payable | 0 | ||||||
Accrued and other current liabilities | 0 | ||||||
Liabilities, Current | 0 | ||||||
Deferred income tax liabilities | 0 | ||||||
Other noncurrent obligations | 0 | ||||||
Liabilities, Other than Long-term Debt, Noncurrent | 0 | ||||||
Retained earnings | (20) | ||||||
Accumulated other comprehensive loss | 20 | ||||||
Stockholders' Equity Attributable to Parent | 0 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 0 | ||||||
Liabilities and Equity | 0 | ||||||
Accounting Standards Update 2016-16 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Trade (net of allowance for doubtful receivables - 2018: $156; 2017: $127) | 0 | ||||||
Other | 0 | ||||||
Inventories | 0 | ||||||
Other current assets | 31 | ||||||
Assets, Current | 31 | ||||||
Deferred income tax assets | 10 | ||||||
Deferred charges and other assets | 0 | ||||||
Assets, Noncurrent, Other than Noncurrent Investments and Property, Plant and Equipment | 10 | ||||||
Assets | 41 | ||||||
Trade | 0 | ||||||
Other | 0 | ||||||
Income taxes payable | 0 | ||||||
Accrued and other current liabilities | 0 | ||||||
Liabilities, Current | 0 | ||||||
Deferred income tax liabilities | 0 | ||||||
Other noncurrent obligations | 0 | ||||||
Liabilities, Other than Long-term Debt, Noncurrent | 0 | ||||||
Retained earnings | 41 | ||||||
Accumulated other comprehensive loss | 0 | ||||||
Stockholders' Equity Attributable to Parent | 41 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 41 | ||||||
Liabilities and Equity | 41 | ||||||
Other Current Liabilities [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Accrued and other current liabilities | $ 119 | ||||||
[1] | In the first quarter of 2018, the Company adopted Topic 606, which resulted in a cumulative effect change to the Company's January 1, 2018 inventory balance. See Note 1 for additional information. |
CONSOLIDATED FINANCIAL STATEM52
CONSOLIDATED FINANCIAL STATEMENTS - Summary of Changes to the Consolidated Statements of Equity (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Business Acquisition [Line Items] | ||
Dividend equivalents on participating securities | $ 0 | |
Other | $ (18) | (17) |
Retained Earnings | ||
Business Acquisition [Line Items] | ||
Dividend equivalents on participating securities | 15 | |
Other | $ (18) | (15) |
As Filed | Retained Earnings | ||
Business Acquisition [Line Items] | ||
Dividend equivalents on participating securities | 15 | |
Other | $ 0 |
CONSOLIDATED FINANCIAL STATEM53
CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS - Opening Balance Sheet Impact of New Accounting Standards (Details) - USD ($) $ in Millions | Apr. 01, 2018 | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Trade (net of allowance for doubtful receivables - 2018: $156; 2017: $127) | $ 15,379 | $ 11,401 | $ 11,314 | |||||
Other | 4,924 | 5,571 | 5,579 | |||||
Inventories | 15,630 | [1] | 16,928 | 16,992 | [1] | |||
Other current assets | 2,213 | 1,775 | 1,614 | |||||
Assets, Current | 47,897 | 50,069 | 49,893 | |||||
Deferred income tax assets | 1,701 | 1,905 | 1,869 | |||||
Deferred charges and other assets | 2,709 | 2,817 | 2,774 | |||||
Assets, Noncurrent, Other than Noncurrent Investments and Property, Plant and Equipment | 95,916 | 97,523 | 97,444 | |||||
Total Assets | 187,367 | 192,419 | 192,164 | |||||
Trade | 7,983 | 9,131 | 9,134 | |||||
Other | 4,662 | 3,737 | 3,727 | |||||
Income taxes payable | 874 | 841 | 843 | |||||
Accrued and other current liabilities | 7,191 | 8,580 | 8,409 | |||||
Total current liabilities | 28,110 | 26,304 | 26,128 | |||||
Deferred income tax liabilities | 5,885 | 6,269 | 6,266 | |||||
Other noncurrent obligations | 7,767 | 8,086 | 7,969 | |||||
Liabilities, Other than Long-term Debt, Noncurrent | 32,525 | 34,173 | 34,053 | |||||
Retained earnings | 30,432 | 29,150 | 29,211 | |||||
Accumulated other comprehensive loss | (10,732) | (8,952) | (8,972) | |||||
Stockholders' Equity Attributable to Parent | 98,262 | 100,289 | 100,330 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 99,882 | 101,886 | 101,927 | $ 29,589 | $ 27,229 | |||
Liabilities and Equity | 187,367 | 192,419 | 192,164 | |||||
Effective Income Tax Rate Reconciliation, Repatriation Foreign Earnings, Jobs Creation Act of 2004, Percent | $ 1,057 | |||||||
As Filed | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Trade (net of allowance for doubtful receivables - 2018: $156; 2017: $127) | 11,314 | |||||||
Other | 5,579 | |||||||
Inventories | 16,992 | |||||||
Other current assets | 1,614 | |||||||
Assets, Current | 49,893 | |||||||
Deferred income tax assets | 1,869 | |||||||
Deferred charges and other assets | 2,774 | |||||||
Assets, Noncurrent, Other than Noncurrent Investments and Property, Plant and Equipment | 97,444 | |||||||
Total Assets | 192,164 | |||||||
Trade | 9,134 | |||||||
Other | 3,727 | |||||||
Income taxes payable | 843 | |||||||
Accrued and other current liabilities | 8,409 | |||||||
Total current liabilities | 26,128 | |||||||
Deferred income tax liabilities | 6,266 | |||||||
Other noncurrent obligations | 7,969 | |||||||
Liabilities, Other than Long-term Debt, Noncurrent | 34,053 | |||||||
Retained earnings | 29,211 | |||||||
Accumulated other comprehensive loss | (8,972) | |||||||
Stockholders' Equity Attributable to Parent | 100,330 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 101,927 | |||||||
Liabilities and Equity | $ 192,164 | |||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Trade (net of allowance for doubtful receivables - 2018: $156; 2017: $127) | (177) | 87 | ||||||
Other | 27 | (8) | ||||||
Inventories | 81 | (64) | ||||||
Other current assets | (155) | 130 | ||||||
Assets, Current | (224) | 145 | ||||||
Deferred income tax assets | (28) | 26 | ||||||
Deferred charges and other assets | (43) | 43 | ||||||
Assets, Noncurrent, Other than Noncurrent Investments and Property, Plant and Equipment | (71) | 69 | ||||||
Total Assets | (295) | 214 | ||||||
Trade | (3) | |||||||
Other | (10) | 10 | ||||||
Income taxes payable | 2 | (2) | ||||||
Accrued and other current liabilities | (187) | 171 | ||||||
Total current liabilities | (195) | 176 | ||||||
Deferred income tax liabilities | (11) | 3 | ||||||
Other noncurrent obligations | (134) | 117 | ||||||
Liabilities, Other than Long-term Debt, Noncurrent | (145) | 120 | ||||||
Retained earnings | 45 | (82) | ||||||
Accumulated other comprehensive loss | 0 | |||||||
Stockholders' Equity Attributable to Parent | 45 | (82) | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 45 | (82) | ||||||
Liabilities and Equity | $ (295) | 214 | ||||||
Accounting Standards Update 2016-01 [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Trade (net of allowance for doubtful receivables - 2018: $156; 2017: $127) | 0 | |||||||
Other | 0 | |||||||
Inventories | 0 | |||||||
Other current assets | 0 | |||||||
Assets, Current | 0 | |||||||
Deferred income tax assets | 0 | |||||||
Deferred charges and other assets | 0 | |||||||
Assets, Noncurrent, Other than Noncurrent Investments and Property, Plant and Equipment | 0 | |||||||
Total Assets | 0 | |||||||
Trade | 0 | |||||||
Other | 0 | |||||||
Income taxes payable | 0 | |||||||
Accrued and other current liabilities | 0 | |||||||
Total current liabilities | 0 | |||||||
Deferred income tax liabilities | 0 | |||||||
Other noncurrent obligations | 0 | |||||||
Liabilities, Other than Long-term Debt, Noncurrent | 0 | |||||||
Retained earnings | (20) | |||||||
Accumulated other comprehensive loss | 20 | |||||||
Stockholders' Equity Attributable to Parent | 0 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 0 | |||||||
Liabilities and Equity | 0 | |||||||
Accounting Standards Update 2016-16 [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Trade (net of allowance for doubtful receivables - 2018: $156; 2017: $127) | 0 | |||||||
Other | 0 | |||||||
Inventories | 0 | |||||||
Other current assets | 31 | |||||||
Assets, Current | 31 | |||||||
Deferred income tax assets | 10 | |||||||
Deferred charges and other assets | 0 | |||||||
Assets, Noncurrent, Other than Noncurrent Investments and Property, Plant and Equipment | 10 | |||||||
Total Assets | 41 | |||||||
Trade | 0 | |||||||
Other | 0 | |||||||
Income taxes payable | 0 | |||||||
Accrued and other current liabilities | 0 | |||||||
Total current liabilities | 0 | |||||||
Deferred income tax liabilities | 0 | |||||||
Other noncurrent obligations | 0 | |||||||
Liabilities, Other than Long-term Debt, Noncurrent | 0 | |||||||
Retained earnings | 41 | |||||||
Accumulated other comprehensive loss | 0 | |||||||
Stockholders' Equity Attributable to Parent | 41 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 41 | |||||||
Liabilities and Equity | $ 41 | |||||||
[1] | In the first quarter of 2018, the Company adopted Topic 606, which resulted in a cumulative effect change to the Company's January 1, 2018 inventory balance. See Note 1 for additional information. |
CONSOLIDATED FINANCIAL STATEM54
CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS - Impact of Topic 606 (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Trade (net of allowance for doubtful receivables - 2018: $156; 2017: $127) | $ 15,379 | $ 11,401 | $ 11,314 | ||||
Other | 4,924 | 5,571 | 5,579 | ||||
Inventories | 15,630 | [1] | 16,928 | 16,992 | [1] | ||
Other current assets | 2,213 | 1,775 | 1,614 | ||||
Assets, Current | 47,897 | 50,069 | 49,893 | ||||
Deferred income tax assets | 1,701 | 1,905 | 1,869 | ||||
Deferred charges and other assets | 2,709 | 2,817 | 2,774 | ||||
Assets, Noncurrent, Other than Noncurrent Investments and Property, Plant and Equipment | 95,916 | 97,523 | 97,444 | ||||
Total Assets | 187,367 | 192,419 | 192,164 | ||||
Other | 4,662 | 3,737 | 3,727 | ||||
Income taxes payable | 874 | 841 | 843 | ||||
Accrued and other current liabilities | 7,191 | 8,580 | 8,409 | ||||
Total current liabilities | 28,110 | 26,304 | 26,128 | ||||
Other noncurrent obligations | 7,767 | 8,086 | 7,969 | ||||
Deferred income tax liabilities | 5,885 | 6,269 | 6,266 | ||||
Liabilities, Other than Long-term Debt, Noncurrent | 32,525 | 34,173 | 34,053 | ||||
Retained earnings | 30,432 | 29,150 | 29,211 | ||||
Stockholders' Equity Attributable to Parent | 98,262 | 100,289 | 100,330 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 99,882 | 101,886 | 101,927 | $ 29,589 | $ 27,229 | ||
Liabilities and Equity | 187,367 | 192,419 | $ 192,164 | ||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Trade (net of allowance for doubtful receivables - 2018: $156; 2017: $127) | (177) | 87 | |||||
Other | 27 | (8) | |||||
Inventories | 81 | (64) | |||||
Other current assets | (155) | 130 | |||||
Assets, Current | (224) | 145 | |||||
Deferred income tax assets | (28) | 26 | |||||
Deferred charges and other assets | (43) | 43 | |||||
Assets, Noncurrent, Other than Noncurrent Investments and Property, Plant and Equipment | (71) | 69 | |||||
Total Assets | (295) | 214 | |||||
Other | (10) | 10 | |||||
Income taxes payable | 2 | (2) | |||||
Accrued and other current liabilities | (187) | 171 | |||||
Total current liabilities | (195) | 176 | |||||
Other noncurrent obligations | (134) | 117 | |||||
Deferred income tax liabilities | (11) | 3 | |||||
Liabilities, Other than Long-term Debt, Noncurrent | (145) | 120 | |||||
Retained earnings | 45 | (82) | |||||
Stockholders' Equity Attributable to Parent | 45 | (82) | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 45 | (82) | |||||
Liabilities and Equity | (295) | $ 214 | |||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Trade (net of allowance for doubtful receivables - 2018: $156; 2017: $127) | 15,202 | ||||||
Other | 4,951 | ||||||
Inventories | 15,711 | ||||||
Other current assets | 2,058 | ||||||
Assets, Current | 47,673 | ||||||
Deferred income tax assets | 1,673 | ||||||
Deferred charges and other assets | 2,666 | ||||||
Assets, Noncurrent, Other than Noncurrent Investments and Property, Plant and Equipment | 95,845 | ||||||
Total Assets | 187,072 | ||||||
Other | 4,652 | ||||||
Income taxes payable | 876 | ||||||
Accrued and other current liabilities | 7,004 | ||||||
Total current liabilities | 27,915 | ||||||
Other noncurrent obligations | 7,633 | ||||||
Deferred income tax liabilities | 5,874 | ||||||
Liabilities, Other than Long-term Debt, Noncurrent | 32,380 | ||||||
Retained earnings | 30,477 | ||||||
Stockholders' Equity Attributable to Parent | 98,307 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 99,927 | ||||||
Liabilities and Equity | $ 187,072 | ||||||
[1] | In the first quarter of 2018, the Company adopted Topic 606, which resulted in a cumulative effect change to the Company's January 1, 2018 inventory balance. See Note 1 for additional information. |
BUSINESS COMBINATIONS - Narrati
BUSINESS COMBINATIONS - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Aug. 30, 2017 |
Business Acquisition [Line Items] | |||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||
Integration and separation costs | $ 558 | $ 136 | $ 1,015 | $ 245 | |||
Merger | |||||||
Business Acquisition [Line Items] | |||||||
Consideration transferred | $ 74,680 | ||||||
Goodwill, Purchase Accounting Adjustments | 394 | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Property, Plant, and Equipment | (230) | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles | (117) | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Assets Held For Sale, Current | (16) | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Other Assets | 60 | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Noncontrolling Interest, Fair Value | 56 | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Equity Method Investments | $ (28) | ||||||
Common Stock | Merger | |||||||
Business Acquisition [Line Items] | |||||||
Common stock, conversion ratio (in shares) | 1.2820 | ||||||
Dow | |||||||
Business Acquisition [Line Items] | |||||||
Common stock, par value (in dollars per share) | $ 2.50 | ||||||
DuPont | |||||||
Business Acquisition [Line Items] | |||||||
Common stock, par value (in dollars per share) | $ 0.30 | ||||||
DuPont | Preferred Stock, $4.50 Series | |||||||
Business Acquisition [Line Items] | |||||||
Preferred stock par value (in dollars per share) | $ 4.50 | $ 4.50 | |||||
DuPont | Preferred Stock, $3.50 Series | |||||||
Business Acquisition [Line Items] | |||||||
Preferred stock par value (in dollars per share) | $ 3.50 | $ 3.50 |
BUSINESS COMBINATIONS - Summary
BUSINESS COMBINATIONS - Summary of DuPont Fair Value of Consideration Transferred (Details) $ / shares in Units, $ in Millions | Aug. 31, 2017USD ($)$ / sharesshares | |
Merger | ||
Business Acquisition [Line Items] | ||
Purchase Price | $ | $ 74,680 | |
Merger | Common Stock | ||
Business Acquisition [Line Items] | ||
Common stock, conversion ratio (in shares) | shares | 1.2820 | |
Shares of DowDuPont common stock issued (in shares) | shares | 1,113,200,000 | |
Fair value of equity awards converted | $ | $ 74,195 | [1] |
DuPont | ||
Business Acquisition [Line Items] | ||
Common stock outstanding (in shares) | shares | 868,300,000 | |
Dow | Common Stock | ||
Business Acquisition [Line Items] | ||
Price per share (closing market price of Dow common stock on merger date) (in dollars per share) | $ / shares | $ 66.65 | |
Equity Awards | Merger | ||
Business Acquisition [Line Items] | ||
Fair value of equity awards converted | $ | $ 485 | [2] |
[1] | Amount was determined based on the price per share of Dow Common Stock of $66.65 on August 31, 2017. | |
[2] | Represents the fair value of replacement awards issued for DuPont's equity awards outstanding immediately before the Merger and attributable to the service periods prior to the Merger. The previous DuPont equity awards were converted into the right to receive 1.2820 shares of DowDuPont Common Stock. |
BUSINESS COMBINATIONS - Summa57
BUSINESS COMBINATIONS - Summary of DuPont Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Aug. 31, 2017 |
Fair Value of Assets Acquired | |||
Goodwill | $ 59,404 | $ 59,527 | |
Merger | |||
Fair Value of Assets Acquired | |||
Cash and cash equivalents | $ 4,005 | ||
Marketable securities | 2,849 | ||
Accounts and notes receivable - Trade | 6,199 | ||
Accounts and notes receivable - Other | 1,648 | ||
Inventories | 8,806 | ||
Other current assets | 420 | ||
Assets held for sale | 3,732 | ||
Investment in nonconsolidated affiliates | 1,626 | ||
Other investments | 50 | ||
Noncurrent receivables | 84 | ||
Property | 11,711 | ||
Goodwill | 45,499 | ||
Other intangible assets | 27,104 | ||
Deferred income tax assets | 284 | ||
Deferred charges and other assets | 1,932 | ||
Total Assets | 115,949 | ||
Fair Value of Liabilities Assumed | |||
Notes payable | 4,046 | ||
Long-term debt due within one year | 1,273 | ||
Accounts payable - Trade | 2,346 | ||
Accounts payable - Other | 952 | ||
Income taxes payable | 261 | ||
Accrued and other current liabilities | 3,517 | ||
Liabilities held for sale | 125 | ||
Long-term debt | 9,878 | ||
Deferred income tax liabilities | 8,319 | ||
Pension and other postretirement benefits - noncurrent | 8,056 | ||
Other noncurrent obligations | 2,023 | ||
Total Liabilities | 40,796 | ||
Noncontrolling interests | 473 | ||
Net Assets (Consideration for the Merger) | $ 74,680 |
BUSINESS COMBINATIONS H&N Busin
BUSINESS COMBINATIONS H&N Business Acquisition (Details) $ in Millions | Nov. 01, 2017USD ($) |
H&N Business [Member] | |
Business Acquisition [Line Items] | |
H&N Fair Value | $ 1,970 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Net sales | $ 24,245 | $ 13,834 | $ 45,755 | $ 27,064 | ||
Contract with Customer, Liability, Revenue Recognized | 1,925 | |||||
Accounts and notes receivable - Trade | 15,379 | 15,379 | $ 11,401 | $ 11,314 | ||
Contract assets - current 1 | 82 | 82 | 0 | |||
Contract assets - noncurrent 2 | 45 | 45 | 0 | |||
Contract liabilities - current 3 | 544 | 544 | 2,131 | |||
Contract liabilities - noncurrent 4 | $ 1,496 | $ 1,496 | $ 1,413 | |||
Product [Member] | ||||||
Revenue, Percentage from Products and Service Transferred to Customers | 99.00% | 98.00% | 99.00% | 98.00% | ||
Material Rights Granted to Customers [Member] | ||||||
Revenue, Remaining Performance Obligation | $ 99 | $ 99 | ||||
Licensing of Technology [Member] | ||||||
Revenue, Percentage from Products and Service Transferred to Customers | 1.00% | 2.00% | 1.00% | 2.00% | ||
Revenue, Remaining Performance Obligation | $ 228 | $ 228 | ||||
Agriculture | ||||||
Net sales | 5,730 | $ 1,629 | 9,538 | $ 3,197 | ||
Agriculture | Crop Protection | ||||||
Net sales | 1,853 | 3,348 | ||||
Agriculture | Seed | ||||||
Net sales | 3,877 | 6,190 | ||||
Performance Materials & Coatings | ||||||
Net sales | 2,599 | 2,273 | 4,903 | 4,352 | ||
Performance Materials & Coatings | Coatings & Performance Monomers | ||||||
Net sales | 1,084 | 2,025 | ||||
Performance Materials & Coatings | Consumer Solutions | ||||||
Net sales | 1,515 | 2,878 | ||||
Industrial Intermediates & Infrastructure | ||||||
Net sales | 3,885 | 3,015 | 7,600 | 5,866 | ||
Industrial Intermediates & Infrastructure | Construction Chemicals | ||||||
Net sales | 226 | 408 | ||||
Industrial Intermediates & Infrastructure | Industrial Solutions | ||||||
Net sales | 1,198 | 2,357 | ||||
Industrial Intermediates & Infrastructure | Polyurethanes & CAV | ||||||
Net sales | 2,458 | 4,828 | ||||
Industrial Intermediates & Infrastructure | Other | ||||||
Net sales | 3 | 7 | ||||
Packaging & Specialty Plastics | ||||||
Net sales | 6,099 | 5,079 | 12,109 | 10,104 | ||
Packaging & Specialty Plastics | Hydrocarbons & Energy | ||||||
Net sales | 1,853 | 3,653 | ||||
Packaging & Specialty Plastics | Packaging and Specialty Plastics | ||||||
Net sales | 4,246 | 8,456 | ||||
Electronics & Imaging | ||||||
Net sales | 1,203 | 677 | 2,356 | 1,332 | ||
Electronics & Imaging | Advanced Printing | ||||||
Net sales | 136 | 258 | ||||
Electronics & Imaging | Display & Other Technologies | ||||||
Net sales | 82 | 142 | ||||
Electronics & Imaging | Interconnect Solutions | ||||||
Net sales | 298 | 579 | ||||
Electronics & Imaging | Photovoltaic & Advanced Materials | ||||||
Net sales | 282 | 571 | ||||
Electronics & Imaging | Semiconductor Technologies | ||||||
Net sales | 405 | 806 | ||||
Nutrition & Biosciences | ||||||
Net sales | 1,775 | 277 | 3,495 | 534 | ||
Nutrition & Biosciences | Industrial Biosciences | ||||||
Net sales | 561 | 1,102 | ||||
Nutrition & Biosciences | Nutrition & Health | ||||||
Net sales | 1,214 | 2,393 | ||||
Transportation & Advanced Polymers | ||||||
Net sales | 1,468 | 298 | 2,893 | 588 | ||
Transportation & Advanced Polymers | Nylon Enterprise & Polyester | ||||||
Net sales | 699 | 1,367 | ||||
Transportation & Advanced Polymers | Performance Resins [Member] | ||||||
Net sales | 486 | 837 | ||||
Transportation & Advanced Polymers | Performance Solutions [Member] | ||||||
Net sales | 283 | 689 | ||||
Safety & Construction | ||||||
Net sales | 1,411 | 490 | 2,710 | 924 | ||
Safety & Construction | Aramids | ||||||
Net sales | 398 | 791 | ||||
Safety & Construction | Construction [Member] | ||||||
Net sales | 435 | 820 | ||||
Safety & Construction | Tyvek Enterprise [Member] | ||||||
Net sales | 316 | 608 | ||||
Safety & Construction | Water Solutions [Member] | ||||||
Net sales | 262 | 491 | ||||
Corporate | ||||||
Net sales | 75 | $ 96 | 151 | $ 167 | ||
U.S. & Canada | ||||||
Net sales | 10,452 | 18,361 | ||||
EMEA 1 | ||||||
Net sales | 6,294 | 13,213 | ||||
Asia Pacific | ||||||
Net sales | 5,398 | 10,188 | ||||
Latin America | ||||||
Net sales | 2,101 | 3,993 | ||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||||
Accounts and notes receivable - Trade | $ (177) | $ (177) | 87 | |||
Contract assets - current 1 | 58 | |||||
Contract assets - noncurrent 2 | 43 | |||||
Contract liabilities - current 3 | 52 | |||||
Contract liabilities - noncurrent 4 | $ 117 |
RESTRUCTURING AND ASSET RELAT60
RESTRUCTURING AND ASSET RELATED CHARGES (CREDITS) - NET - Summary of DowDuPont Restructuring Plan (Details) - USD ($) $ in Millions | 3 Months Ended | 4 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Nov. 01, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and asset related charges (benefit) - net | $ 189 | $ (12) | $ 451 | $ (13) | ||
Synergy Program | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Expected Cost | $ 2,000 | |||||
Restructuring and asset related charges (benefit) - net | 182 | $ 874 | 442 | |||
Reserve balance, beginning of period | 510 | |||||
Adjustments to the reserve | 442 | |||||
Charges against the reserve | (290) | (81) | ||||
Non-cash compensation | (7) | |||||
Cash payments | (67) | (252) | ||||
Net translation adjustment | (2) | |||||
Reserve balance, end of period | 617 | 510 | 617 | |||
Synergy Program | Accrued and other current liabilities | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Reserve balance, beginning of period | 377 | |||||
Reserve balance, end of period | 469 | 377 | 469 | |||
Synergy Program | Other noncurrent obligations | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Reserve balance, beginning of period | 133 | |||||
Reserve balance, end of period | 148 | 133 | 148 | |||
Synergy Program | Severance and Related Benefit Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and asset related charges (benefit) - net | 122 | 510 | 294 | |||
Reserve balance, beginning of period | 439 | |||||
Adjustments to the reserve | 294 | |||||
Charges against the reserve | 0 | 0 | ||||
Non-cash compensation | (7) | |||||
Cash payments | (64) | (194) | ||||
Net translation adjustment | (2) | |||||
Reserve balance, end of period | 537 | 439 | 537 | |||
Synergy Program | Severance and Related Benefit Costs | Minimum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Expected Cost | 845 | |||||
Synergy Program | Severance and Related Benefit Costs | Maximum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Expected Cost | 935 | |||||
Synergy Program | Asset Related Charges and Other | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and asset related charges (benefit) - net | 33 | 290 | 81 | |||
Reserve balance, beginning of period | 0 | |||||
Adjustments to the reserve | 81 | |||||
Charges against the reserve | (290) | (81) | ||||
Non-cash compensation | 0 | |||||
Cash payments | 0 | 0 | ||||
Net translation adjustment | 0 | |||||
Reserve balance, end of period | 0 | 0 | 0 | |||
Synergy Program | Asset Related Charges and Other | Agriculture | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and asset related charges (benefit) - net | 14 | 58 | ||||
Synergy Program | Asset Related Charges and Other | Corporate | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and asset related charges (benefit) - net | 15 | 18 | ||||
Synergy Program | Asset Related Charges and Other | Electronics & Imaging | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and asset related charges (benefit) - net | 1 | 2 | ||||
Synergy Program | Asset Related Charges and Other | Safety And Construction Segment [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and asset related charges (benefit) - net | 3 | 3 | ||||
Synergy Program | Asset Related Charges and Other | Minimum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Expected Cost | 400 | |||||
Synergy Program | Asset Related Charges and Other | Maximum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Expected Cost | 540 | |||||
Synergy Program | Costs Associated With Exit Or Disposal Activities | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and asset related charges (benefit) - net | 27 | 74 | 67 | |||
Reserve balance, beginning of period | 71 | |||||
Adjustments to the reserve | 27 | 67 | ||||
Charges against the reserve | 0 | 0 | ||||
Non-cash compensation | 0 | |||||
Cash payments | (3) | (58) | ||||
Net translation adjustment | 0 | |||||
Reserve balance, end of period | 80 | $ 71 | 80 | |||
Synergy Program | Costs Associated With Exit Or Disposal Activities | Agriculture | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and asset related charges (benefit) - net | 23 | 37 | ||||
Synergy Program | Costs Associated With Exit Or Disposal Activities | Industrial Intermediates & Infrastructure | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and asset related charges (benefit) - net | 11 | |||||
Synergy Program | Costs Associated With Exit Or Disposal Activities | Packaging & Specialty Plastics | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and asset related charges (benefit) - net | 3 | |||||
Synergy Program | Costs Associated With Exit Or Disposal Activities | Transportation & Advanced Polymers | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and asset related charges (benefit) - net | (1) | |||||
Synergy Program | Costs Associated With Exit Or Disposal Activities | Corporate | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and asset related charges (benefit) - net | (5) | 1 | ||||
Synergy Program | Costs Associated With Exit Or Disposal Activities | Safety And Construction Segment [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and asset related charges (benefit) - net | $ 9 | $ 16 | ||||
Synergy Program | Costs Associated With Exit Or Disposal Activities | Minimum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Expected Cost | 400 | |||||
Synergy Program | Costs Associated With Exit Or Disposal Activities | Maximum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Expected Cost | $ 450 |
RESTRUCTURING AND ASSET RELAT61
RESTRUCTURING AND ASSET RELATED CHARGES (CREDITS) - NET - Restructuring Plans Initiated Prior to the Merger (Details) $ in Millions | Jun. 27, 2016position | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and asset related charges (benefit) - net | $ 189 | $ (12) | $ 451 | $ (13) | |
Dow 2016 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected workforce reduction (in employees) | position | 2,500 | ||||
Restructuring and asset related charges (benefit) - net | 7 | 6 | |||
Reserve balance, beginning of period | 68 | ||||
Adjustments to the reserve | 6 | ||||
Cash payments | 41 | ||||
Reserve balance, end of period | 33 | 33 | |||
Dow 2016 Restructuring Plan | Severance and Related Benefit Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and asset related charges (benefit) - net | (8) | (8) | |||
Reserve balance, beginning of period | 51 | ||||
Adjustments to the reserve | (8) | ||||
Cash payments | 37 | ||||
Reserve balance, end of period | 6 | 6 | |||
Dow 2016 Restructuring Plan | Costs Associated With Exit Or Disposal Activities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and asset related charges (benefit) - net | 15 | 14 | |||
Reserve balance, beginning of period | 17 | ||||
Cash payments | 4 | ||||
Reserve balance, end of period | $ 27 | 27 | |||
Performance Materials & Coatings | Dow 2016 Restructuring Plan | Costs Associated With Exit Or Disposal Activities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Adjustments to the reserve | $ 14 |
SUPPLEMENTARY INFORMATION - Sum
SUPPLEMENTARY INFORMATION - Summary of Sundry Income (Expense) - Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Schedule Of Sundry Income (Expense) [Line Items] | |||||||
Nonoperating Income (Expense) | $ 178 | $ 322 | $ 293 | $ (122) | |||
Non-operating pension and other postretirement benefit plan net credit 1 | 113 | 1 | 223 | 2 | |||
Interest income | 51 | 22 | 106 | 47 | |||
Gain on sales of other assets and investments 2 | 35 | 133 | 69 | 137 | |||
Adjustment related to Dow Silicones ownership restructure | (41) | 0 | (41) | 0 | |||
Foreign exchange gains (losses), net 3 | (57) | (30) | (205) | (56) | |||
Arbitration matter and legal settlements | 137 | (332) | |||||
Accounts and notes receivable - Trade | 15,379 | 15,379 | $ 11,401 | $ 11,314 | |||
Notes, Loans and Financing Receivable, Net, Current | 1,740 | 1,740 | $ 309 | ||||
Nova Patent Infringement [Member] | |||||||
Schedule Of Sundry Income (Expense) [Line Items] | |||||||
Arbitration matter and legal settlements | 0 | 137 | 0 | 137 | |||
Bayer CropScience arbitration matter | |||||||
Schedule Of Sundry Income (Expense) [Line Items] | |||||||
Arbitration matter and legal settlements | $ 0 | $ 0 | 0 | $ (469) | |||
MEGlobal [Member] | |||||||
Schedule Of Sundry Income (Expense) [Line Items] | |||||||
Gain on sales of other assets and investments 2 | $ 20 | ||||||
DuPont | Foreign Exchange Contract [Member] | |||||||
Schedule Of Sundry Income (Expense) [Line Items] | |||||||
Foreign exchange gains (losses), net 3 | $ 50 | $ 50 |
SUPPLEMENTARY INFORMATION - Rec
SUPPLEMENTARY INFORMATION - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash and cash equivalents 1 | $ 561 | $ 577 | $ 15 | |
Cash and Cash Equivalents, at Carrying Value | 9,244 | 13,438 | 6,218 | |
Total cash, cash equivalents and restricted cash | 9,805 | 14,015 | $ 6,233 | $ 6,624 |
DuPont Trust Agreement [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash and cash equivalents 1 | $ 516 | $ 558 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Change in Tax Rate, Provisional Income Tax Expense (Benefit) | $ 7 | $ 24 | $ (2,642) | |
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense | $ 1,580 | |||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Indirect Impact on Inventory, Provisional Income Tax Expense | $ 54 |
EARNINGS PER SHARE CALCULATIO65
EARNINGS PER SHARE CALCULATIONS - Summary of Net Income for EPS Calculations, Basic (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Income from continuing operations, net of tax | $ 1,803 | $ 1,359 | $ 2,956 | $ 2,274 |
Net income attributable to noncontrolling interests | (35) | (38) | (79) | (65) |
Net income attributable to participating securities | (7) | (6) | (13) | (10) |
Net income attributable to DowDuPont Inc. | 1,761 | 1,315 | 2,864 | 2,199 |
Loss from discontinued operations, net of tax | 0 | 0 | (5) | 0 |
Net income available for DowDuPont Inc. common stockholders | $ 1,761 | $ 1,315 | $ 2,859 | $ 2,199 |
EARNINGS PER SHARE CALCULATIO66
EARNINGS PER SHARE CALCULATIONS - Summary of EPS Calculations, Basic (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Earnings per common share from continuing operations - basic (in dollars per share) | $ 0.76 | $ 1.08 | $ 1.24 | $ 1.82 |
Earnings per common share from discontinued operations - basic (in dollars per share) | 0 | 0 | 0 | 0 |
Net income attributable to common stockholders, basic (in dollars per share) | $ 0.76 | $ 1.08 | $ 1.24 | $ 1.82 |
EARNINGS PER SHARE CALCULATIO67
EARNINGS PER SHARE CALCULATIONS - Summary of Net Income for EPS Calculations, Diluted (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Income from continuing operations, net of tax | $ 1,803 | $ 1,359 | $ 2,956 | $ 2,274 |
Net income attributable to noncontrolling interests | (35) | (38) | (79) | (65) |
Net income attributable to participating securities | (7) | (6) | (13) | (10) |
Net income attributable to DowDuPont Inc. | 1,761 | 1,315 | 2,864 | 2,199 |
Loss from discontinued operations, net of tax | 0 | 0 | (5) | 0 |
Net income attributable to common stockholders | $ 1,761 | $ 1,315 | $ 2,859 | $ 2,199 |
EARNINGS PER SHARE CALCULATIO68
EARNINGS PER SHARE CALCULATIONS - Summary of EPS Calculations, Diluted (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Earnings per common share from continuing operations - diluted (in dollars per share) | $ 0.76 | $ 1.07 | $ 1.23 | $ 1.79 |
Earnings per common share from discontinued operations - diluted (in dollars per share) | 0 | 0 | 0 | 0 |
Net income attributable to common stockholders, diluted (in dollars per share) | $ 0.76 | $ 1.07 | $ 1.23 | $ 1.79 |
EARNINGS PER SHARE CALCULATIO69
EARNINGS PER SHARE CALCULATIONS - Summary of Count Information (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Weighted-average common shares - basic (in shares) | 2,308.9 | 1,211.8 | 2,312.9 | 1,207.2 |
Plus dilutive effect of equity compensation plans (in shares) | 14.7 | 17.2 | 16.1 | 18.3 |
Weighted-average common shares - diluted (in shares) | 2,323.6 | 1,229 | 2,329 | 1,225.5 |
Stock options and deferred stock awards excluded from EPS calculations (in shares) | 9.7 | 2.2 | 7.5 | 1.7 |
INVENTORIES (Summary of Invento
INVENTORIES (Summary of Inventory) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | ||
Inventory Disclosure [Abstract] | |||||
Finished goods | $ 9,303 | $ 9,701 | |||
Work in process | 3,542 | 4,512 | |||
Raw materials | 1,478 | 1,267 | |||
Supplies | 1,176 | 1,296 | |||
Total | 15,499 | 16,776 | |||
Adjustment of inventories to a LIFO basis | 131 | 216 | |||
Total inventories 1 | $ 15,630 | [1] | $ 16,928 | $ 16,992 | [1] |
[1] | In the first quarter of 2018, the Company adopted Topic 606, which resulted in a cumulative effect change to the Company's January 1, 2018 inventory balance. See Note 1 for additional information. |
GOODWILL AND OTHER INTANGIBLE71
GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Goodwill [Roll Forward] | |
Net goodwill, beginning of period | $ 59,527 |
Other | 0 |
Foreign currency impact | (528) |
Net goodwill, end of period | 59,404 |
Merger | |
Goodwill [Roll Forward] | |
Measurement period adjustments | 394 |
H&N Business | |
Goodwill [Roll Forward] | |
Measurement period adjustments | 11 |
Agriculture | |
Goodwill [Roll Forward] | |
Net goodwill, beginning of period | 14,873 |
Other | 0 |
Foreign currency impact | (269) |
Net goodwill, end of period | 14,610 |
Agriculture | Merger | |
Goodwill [Roll Forward] | |
Measurement period adjustments | 6 |
Agriculture | H&N Business | |
Goodwill [Roll Forward] | |
Measurement period adjustments | 0 |
Performance Materials & Coatings | |
Goodwill [Roll Forward] | |
Net goodwill, beginning of period | 3,669 |
Other | 20 |
Foreign currency impact | (21) |
Net goodwill, end of period | 3,668 |
Performance Materials & Coatings | Merger | |
Goodwill [Roll Forward] | |
Measurement period adjustments | 0 |
Performance Materials & Coatings | H&N Business | |
Goodwill [Roll Forward] | |
Measurement period adjustments | 0 |
Industrial Intermediates & Infrastructure | |
Goodwill [Roll Forward] | |
Net goodwill, beginning of period | 1,101 |
Other | 0 |
Foreign currency impact | (3) |
Net goodwill, end of period | 1,098 |
Industrial Intermediates & Infrastructure | Merger | |
Goodwill [Roll Forward] | |
Measurement period adjustments | 0 |
Industrial Intermediates & Infrastructure | H&N Business | |
Goodwill [Roll Forward] | |
Measurement period adjustments | 0 |
Packaging & Specialty Plastics | |
Goodwill [Roll Forward] | |
Net goodwill, beginning of period | 5,044 |
Other | 0 |
Foreign currency impact | (2) |
Net goodwill, end of period | 5,117 |
Packaging & Specialty Plastics | Merger | |
Goodwill [Roll Forward] | |
Measurement period adjustments | 75 |
Packaging & Specialty Plastics | H&N Business | |
Goodwill [Roll Forward] | |
Measurement period adjustments | 0 |
Electronics & Imaging | |
Goodwill [Roll Forward] | |
Net goodwill, beginning of period | 8,175 |
Other | 0 |
Foreign currency impact | (39) |
Net goodwill, end of period | 8,172 |
Electronics & Imaging | Merger | |
Goodwill [Roll Forward] | |
Measurement period adjustments | 36 |
Electronics & Imaging | H&N Business | |
Goodwill [Roll Forward] | |
Measurement period adjustments | 0 |
Nutrition & Biosciences | |
Goodwill [Roll Forward] | |
Net goodwill, beginning of period | 13,200 |
Other | (20) |
Foreign currency impact | (120) |
Net goodwill, end of period | 13,105 |
Nutrition & Biosciences | Merger | |
Goodwill [Roll Forward] | |
Measurement period adjustments | 34 |
Nutrition & Biosciences | H&N Business | |
Goodwill [Roll Forward] | |
Measurement period adjustments | 11 |
Transportation & Advanced Polymers | |
Goodwill [Roll Forward] | |
Net goodwill, beginning of period | 6,870 |
Other | 0 |
Foreign currency impact | (34) |
Net goodwill, end of period | 6,964 |
Transportation & Advanced Polymers | Merger | |
Goodwill [Roll Forward] | |
Measurement period adjustments | 128 |
Transportation & Advanced Polymers | H&N Business | |
Goodwill [Roll Forward] | |
Measurement period adjustments | 0 |
Safety & Construction | |
Goodwill [Roll Forward] | |
Net goodwill, beginning of period | 6,595 |
Other | 0 |
Foreign currency impact | (40) |
Net goodwill, end of period | 6,670 |
Safety & Construction | Merger | |
Goodwill [Roll Forward] | |
Measurement period adjustments | 115 |
Safety & Construction | H&N Business | |
Goodwill [Roll Forward] | |
Measurement period adjustments | $ 0 |
GOODWILL AND OTHER INTANGIBLE72
GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Other Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite other intangible assets, gross carrying amount | $ 26,849 | $ 26,993 |
Finite other intangible assets, accumulated amortization | (6,451) | (5,550) |
Finite other intangible assets, net | 20,398 | 21,443 |
Indefinite-lived Intangible Assets [Line Items] | ||
Other intangible assets, gross carrying amount | 38,553 | 38,824 |
Other intangible assets, net | 32,102 | 33,274 |
In-process research and development | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite other intangible asset, carrying amount | 680 | 710 |
Germplasm | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite other intangible asset, carrying amount | 6,265 | 6,265 |
Trademarks / tradenames | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite other intangible asset, carrying amount | 4,759 | 4,856 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite other intangible assets, gross carrying amount | 7,751 | 7,627 |
Finite other intangible assets, accumulated amortization | (2,194) | (1,834) |
Finite other intangible assets, net | 5,557 | 5,793 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite other intangible assets, gross carrying amount | 1,479 | 1,420 |
Finite other intangible assets, accumulated amortization | (833) | (780) |
Finite other intangible assets, net | 646 | 640 |
Trademarks / tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite other intangible assets, gross carrying amount | 1,775 | 1,814 |
Finite other intangible assets, accumulated amortization | (664) | (596) |
Finite other intangible assets, net | 1,111 | 1,218 |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite other intangible assets, gross carrying amount | 14,357 | 14,537 |
Finite other intangible assets, accumulated amortization | (2,499) | (2,151) |
Finite other intangible assets, net | 11,858 | 12,386 |
Microbial cell factories | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite other intangible assets, gross carrying amount | 391 | 397 |
Finite other intangible assets, accumulated amortization | (14) | (6) |
Finite other intangible assets, net | 377 | 391 |
Favorable Supply Contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite other intangible assets, gross carrying amount | 475 | 495 |
Finite other intangible assets, accumulated amortization | (64) | (17) |
Finite other intangible assets, net | 411 | 478 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite other intangible assets, gross carrying amount | 621 | 703 |
Finite other intangible assets, accumulated amortization | (183) | (166) |
Finite other intangible assets, net | $ 438 | $ 537 |
GOODWILL AND OTHER INTANGIBLE73
GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | $ 488 | $ 157 | $ 962 | $ 312 |
Other intangible assets, excluding software | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | 488 | 157 | 962 | 312 |
Software, included in Cost of sales | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | $ 25 | $ 20 | $ 48 | $ 40 |
GOODWILL AND OTHER INTANGIBLE74
GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Future Amortization Expense (Details) $ in Millions | Jun. 30, 2018USD ($) |
Estimated Amortization Expense for Next Five Years | |
2,018 | $ 1,984 |
2,019 | 1,926 |
2,020 | 1,879 |
2,021 | 1,831 |
2,022 | 1,753 |
2,023 | $ 1,715 |
TRANSFERS OF FINANCIAL ASSETS75
TRANSFERS OF FINANCIAL ASSETS (Summary of Interests Held) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Transfers and Servicing [Abstract] | ||
Carrying value of interests held | $ 24 | $ 677 |
Percentage of anticipated credit losses | 36.81% | 2.64% |
Impact to carrying value - 10% adverse change | $ 0 | $ 0 |
Impact to carrying value - 20% adverse change | $ 0 | $ 1 |
TRANSFERS OF FINANCIAL ASSETS76
TRANSFERS OF FINANCIAL ASSETS (Summary of Cash Proceeds) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Transfers and Servicing [Abstract] | ||||
Collections reinvested in revolving receivables | $ 0 | $ 6,051 | $ 0 | $ 11,732 |
Interests in conduits 1 | $ 211 | $ 1,363 | $ 656 | $ 1,914 |
TRANSFERS OF FINANCIAL ASSETS77
TRANSFERS OF FINANCIAL ASSETS (Summary of Trade Accounts Receivable Sold) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Transfers and Servicing [Abstract] | ||
Delinquencies on sold receivables still outstanding | $ 36 | $ 82 |
Trade accounts receivable outstanding and derecognized | $ 36 | $ 612 |
TRANSFERS OF FINANCIAL ASSETS78
TRANSFERS OF FINANCIAL ASSETS (Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Transfers and Servicing [Abstract] | ||||
Credit losses, net of any recoveries | $ 0 | $ 0 | $ 0 | $ 0 |
NOTES PAYABLE, LONG-TERM DEBT79
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES - Notes Payable and Long-Term Debt Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | May 31, 2018 | |
Primary beneficiary | |||
Debt Instrument [Line Items] | |||
Proceeds from (Repayments of) Long-term Debt and Capital Securities | $ (75) | $ (60) | |
Loans Payable | Five Point Seven Zero Percent Notes Due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Repurchased Face Amount | $ 333 | ||
Stated interest rate | 5.70% | ||
Loans Payable | InterNotes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Repurchased Face Amount | $ 20 | $ 30 | |
Loans Payable | Tax-Exempt Bonds [Member] | |||
Debt Instrument [Line Items] | |||
Proceeds from (Repayments of) Long-term Debt and Capital Securities | (125) | ||
Gain (Loss) on Extinguishment of Debt | $ (1) | ||
Debt Instrument, Notice to Call | $ 218 |
NOTES PAYABLE, LONG-TERM DEBT80
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES - DuPont Term Loan and Revolving Credit Facilities (Details) - DuPont $ in Billions | 36 Months Ended | ||
Mar. 22, 2019 | Jun. 30, 2018USD ($) | Mar. 22, 2016USD ($)borrowing | |
Term Loan Facility | DuPont Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 4.5 | ||
Line Of Credit Facility, Number Of Borrowings | 3 | ||
Outstanding borrowings | $ 1.5 | ||
Line of Credit Facility, Remaining Borrowing Capacity | 3 | ||
Revolving Credit Facility [Member] | DuPont Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 3 | ||
Maximum | Term Loan Facility | DuPont Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Line Of Credit Facility, Number Of Borrowings | borrowing | 7 | ||
Scenario, Forecast [Member] | Term Loan Facility | DuPont Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Term | 3 years |
NOTES PAYABLE, LONG-TERM DEBT81
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES - Repurchase Facility Additional Information (Details) - Receivable Repurchase Agreement - Repurchase Facility - DuPont - USD ($) $ in Millions | Feb. 13, 2018 | Jun. 30, 2018 |
Short-term Debt [Line Items] | ||
Maximum borrowing capacity | $ 1,300 | |
Required collateral as a percentage of the outstanding borrowing amounts | 105.00% | |
Notes receivable pledged as collateral | $ 1,208 | |
Notes payable | $ 1,150 | |
LIBOR | ||
Short-term Debt [Line Items] | ||
Basis spread on variable interest rate | 0.75% |
NOTES PAYABLE, LONG-TERM DEBT82
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES - Dow Term Loan Facility (Details) - USD ($) $ in Billions | May 31, 2016 | Jun. 30, 2018 | Jun. 30, 2018 |
Term Loan Facility [Member] | DCC Term Loan Facility [Member] | |||
Debt Instrument [Line Items] | |||
Proceeds from Lines of Credit | $ 4.5 | ||
Line Of Credit Facility, Term Extension Option, Period | 19 months | ||
Revolving Credit Facility [Member] | Five Year Competitive Advance and Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Term | 5 years |
COMMITMENTS AND CONTINGENT LI83
COMMITMENTS AND CONTINGENT LIABILITIES - Asbestos-Related Matters of Union Carbide Corporation Additional Information (Details) - Union Carbide - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Loss Contingencies [Line Items] | ||
Percentage of recorded liability related to pending claims | 16.00% | |
Percentage of recorded liability related to future claims | 84.00% | |
Asbestos-Related Matters | ||
Loss Contingencies [Line Items] | ||
Liability for asbestos-related pending and future claims | $ 1,310 | $ 1,369 |
COMMITMENTS AND CONTINGENT LI84
COMMITMENTS AND CONTINGENT LIABILITIES - Bayer CropScience v. Dow AgroSciences ICC Arbitration Additional Information (Details) $ in Millions | May 26, 2017USD ($) | Oct. 09, 2015USD ($)member | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) |
Loss Contingencies [Line Items] | |||||||
Loss on settlement | $ (137) | $ 332 | |||||
Bayer CropScience arbitration matter | |||||||
Loss Contingencies [Line Items] | |||||||
Loss on settlement | $ 0 | $ 0 | $ 0 | $ 469 | |||
Dow AgroSciences LLC | Bayer CropScience arbitration matter | |||||||
Loss Contingencies [Line Items] | |||||||
Number of arbitration tribunal members | member | 3 | ||||||
Damages awarded | $ 455 | ||||||
Loss on settlement | $ 469 | ||||||
Payments for legal settlements | $ 469 |
COMMITMENTS AND CONTINGENT LI85
COMMITMENTS AND CONTINGENT LIABILITIES - Rocky Flats Matter Additional Information (Details) - Rocky Flats Matter - USD ($) $ in Millions | Jan. 17, 2017 | May 18, 2016 | Jan. 26, 2017 |
Loss Contingencies [Line Items] | |||
Settlement amount | $ 131 | ||
Proceeds from indemnity | $ 131 | ||
Escrow deposit | $ 130 | ||
Dow and Rockwell | |||
Loss Contingencies [Line Items] | |||
Settlement amount | $ 375 |
COMMITMENTS AND CONTINGENT LI86
COMMITMENTS AND CONTINGENT LIABILITIES - Dow Silicones Chapter 11 Related Matters Additional Information (Details) - USD ($) $ in Millions | Jun. 01, 2016 | Jun. 01, 2004 | Jun. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 1995 |
Dow Silicones Corporation [Member] | ||||||
Product Liability Contingency [Line Items] | ||||||
Indemnification percentage | 50.00% | |||||
Indemnification asset | $ 0 | $ 0 | ||||
Dow Silicones Corporation [Member] | Commercial Creditors Litigation | ||||||
Product Liability Contingency [Line Items] | ||||||
Payments for legal settlements | $ 1,500 | |||||
Loss Contingency Accrual, Period Increase (Decrease) | $ (33) | |||||
Accrued interest | 80 | 78 | ||||
Dow Silicones Corporation [Member] | Breast Implant and Other Products Liability Claims | ||||||
Product Liability Contingency [Line Items] | ||||||
Obligation period | 16 years | |||||
Payments for product liabilities | 1,762 | |||||
Unexpended balance | 126 | |||||
Product liability | 263 | $ 263 | ||||
Liability maximum capped amount | $ 2,047 | |||||
Dow Silicones Corporation [Member] | ||||||
Product Liability Contingency [Line Items] | ||||||
Ownership Interest | 50.00% | |||||
Minimum | Dow Silicones Corporation [Member] | Commercial Creditors Litigation | ||||||
Product Liability Contingency [Line Items] | ||||||
Loss Contingency, Estimate of Possible Loss | 77 | |||||
Maximum | Dow Silicones Corporation [Member] | Commercial Creditors Litigation | ||||||
Product Liability Contingency [Line Items] | ||||||
Loss Contingency, Estimate of Possible Loss | $ 260 |
COMMITMENTS AND CONTINGENT LI87
COMMITMENTS AND CONTINGENT LIABILITIES - Separation of DuPont's Performance Chemicals Segment (Details) - Indemnification agreement - Chemours - DuPont $ in Millions | Jun. 30, 2018USD ($) |
Loss Contingencies [Line Items] | |
Indemnification asset | $ 236 |
Accounts and notes receivable - Other | |
Loss Contingencies [Line Items] | |
Indemnification asset | 87 |
Noncurrent Receivables | |
Loss Contingencies [Line Items] | |
Indemnification asset | 324 |
Accrued and other current liabilities | |
Loss Contingencies [Line Items] | |
Accrual for environmental, litigation, workers compensation and other Loss Contingencies | 87 |
Other noncurrent obligations | |
Loss Contingencies [Line Items] | |
Accrual for environmental, litigation, workers compensation and other Loss Contingencies | $ 324 |
COMMITMENTS AND CONTINGENT LI88
COMMITMENTS AND CONTINGENT LIABILITIES - PFOA (Details) - PFOA Matters $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | 60 Months Ended | 78 Months Ended | ||
Mar. 31, 2017USD ($) | Jun. 30, 2018USD ($)diseaseclaim | Jun. 30, 2018USD ($)diseaseclaim | Dec. 31, 2004USD ($)plaintiff | Jul. 06, 2022 | Jun. 30, 2018USD ($)diseaseclaim | Jan. 01, 2012water_district | |
DuPont | Chemours | |||||||
Loss Contingencies [Line Items] | |||||||
Indemnification asset | $ 16 | $ 16 | $ 16 | ||||
Total accrual balance | $ 16 | $ 16 | 16 | ||||
DuPont | Leach v. DuPont | |||||||
Loss Contingencies [Line Items] | |||||||
Number of residents | plaintiff | 80,000 | ||||||
Plaintiffs' attorneys' fees and expenses | $ 23 | ||||||
Payment to fund community health project | 70 | ||||||
Medical monitoring program threshold (up to $235 million) | $ 235 | ||||||
Escrow Deposits to Date | 2 | ||||||
Medical monitoring program escrow disbursements to date (less than $1 million) | $ 1 | ||||||
Number of water districts receiving water treatment | water_district | 6 | ||||||
DuPont | MDL | |||||||
Loss Contingencies [Line Items] | |||||||
Number of human diseases which the C8 Science Panel determined a probable link exists | disease | 6 | 6 | 6 | ||||
Number of lawsuits | claim | 3,550 | 3,550 | 3,550 | ||||
Limited sharing of potential future liabilities maximum annual threshold | $ 25 | ||||||
Loss Contingency, Limited Sharing Of Potential Future Liabilities, Costs Incurred | $ 0 | ||||||
DuPont | MDL | Chemours | |||||||
Loss Contingencies [Line Items] | |||||||
Third party initial limited sharing of potential future liabilities threshold | $ 25 | ||||||
DuPont | WEST VIRGINIA AND OHIO [Domain] | MDL | |||||||
Loss Contingencies [Line Items] | |||||||
Number of lawsuits | 35 | 35 | 35 | ||||
DuPont | NEW YORK | MDL | |||||||
Loss Contingencies [Line Items] | |||||||
Number of residents | 5 | ||||||
Number of lawsuits | 3 | 3 | 3 | ||||
DuPont | NORTH CAROLINA | MDL | |||||||
Loss Contingencies [Line Items] | |||||||
Loss Contingency, Number Of Additional Plaintiffs | 100 | ||||||
DuPont And Chemours | MDL | |||||||
Loss Contingencies [Line Items] | |||||||
Settlement amount | $ 671 | ||||||
Scenario, Forecast [Member] | DuPont | MDL | |||||||
Loss Contingencies [Line Items] | |||||||
Period for limited sharing of potential future PFOA liabilities | 5 years |
COMMITMENTS AND CONTINGENT LI89
COMMITMENTS AND CONTINGENT LIABILITIES - Summary of Gain Contingency - Dow v. Nova Chemicals Corporation Patent infringement (Details) $ in Millions, $ in Millions | Jul. 06, 2017USD ($) | Jun. 29, 2017USD ($) | Jun. 29, 2017CAD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Gain Contingencies [Line Items] | |||||||
Settlement amount | $ 0 | ||||||
Gain (Loss) Related to Litigation Settlement | $ 137 | (332) | |||||
Dow v. Nova Chemicals Corporation Patent Infringement Matter | |||||||
Gain Contingencies [Line Items] | |||||||
Settlement amount | $ 495 | $ 645 | |||||
Proceeds from settlements | $ 501 | ||||||
Estimated liability | $ 341 | $ 341 | |||||
Packaging And Specialty Plastics Segment [Member] | |||||||
Gain Contingencies [Line Items] | |||||||
Gain (Loss) Related to Litigation Settlement | 137 | $ 137 | |||||
Packaging And Specialty Plastics Segment [Member] | Dow v. Nova Chemicals Corporation Patent Infringement Matter | |||||||
Gain Contingencies [Line Items] | |||||||
Gain (Loss) Related to Litigation Settlement | 160 | ||||||
Nonoperating Income (Expense) [Member] | Packaging And Specialty Plastics Segment [Member] | Dow v. Nova Chemicals Corporation Patent Infringement Matter | |||||||
Gain Contingencies [Line Items] | |||||||
Gain (Loss) Related to Litigation Settlement | 137 | ||||||
Selling, General and Administrative Expenses [Member] | Packaging And Specialty Plastics Segment [Member] | Dow v. Nova Chemicals Corporation Patent Infringement Matter | |||||||
Gain Contingencies [Line Items] | |||||||
Gain (Loss) Related to Litigation Settlement | $ 23 |
COMMITMENTS AND CONTINGENT LI90
COMMITMENTS AND CONTINGENT LIABILITIES - Environmental Matters Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Other Environmental Matters | ||
Site Contingency [Line Items] | ||
Accrued obligations for environmental matters | $ 1,260 | $ 1,311 |
Other Environmental Matters | Chemours | DuPont | ||
Site Contingency [Line Items] | ||
Accrued obligations for environmental matters | 236 | |
Potential exposure above the current accrual | 420 | |
Other Environmental Matters | Superfund sites | ||
Site Contingency [Line Items] | ||
Accrued obligations for environmental matters | 203 | $ 219 |
Other Environmental Matters | Superfund sites | Chemours | DuPont | ||
Site Contingency [Line Items] | ||
Accrued obligations for environmental matters | 41 | |
Indemnification agreement | Chemours | DuPont | ||
Site Contingency [Line Items] | ||
Indemnification asset | $ 236 |
COMMITMENTS AND CONTINGENT LI91
COMMITMENTS AND CONTINGENT LIABILITIES - Summary of Guarantees (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Guarantor Obligations [Line Items] | ||
Maximum Future Payments | $ 5,759 | $ 5,960 |
Recorded Liability | 177 | 184 |
Long-term debt | $ 31,456 | 32,123 |
Sadara | ||
Guarantor Obligations [Line Items] | ||
Ownership Interest | 35.00% | |
Dow | ||
Guarantor Obligations [Line Items] | ||
Maximum Future Payments | $ 5,467 | 5,663 |
Recorded Liability | 177 | 184 |
DuPont | ||
Guarantor Obligations [Line Items] | ||
Maximum Future Payments | 292 | 297 |
Recorded Liability | 0 | 0 |
Sadara | Total Project Financing | ||
Guarantor Obligations [Line Items] | ||
Principal amount | 12,500 | |
Long-term debt | 12,400 | 12,400 |
Guarantees | Sadara | ||
Guarantor Obligations [Line Items] | ||
Maximum Future Payments | $ 4,400 | |
Guarantees | Minimum | ||
Guarantor Obligations [Line Items] | ||
Expiration period | 1 year | |
Guarantees | Maximum | ||
Guarantor Obligations [Line Items] | ||
Expiration period | 5 years | |
Guarantees | Dow | ||
Guarantor Obligations [Line Items] | ||
Maximum Future Payments | $ 4,572 | 4,774 |
Recorded Liability | 45 | 49 |
Guarantees | DuPont | ||
Guarantor Obligations [Line Items] | ||
Maximum Future Payments | 256 | 260 |
Recorded Liability | 0 | 0 |
Residual value guarantees | Dow | ||
Guarantor Obligations [Line Items] | ||
Maximum Future Payments | 895 | 889 |
Recorded Liability | 132 | 135 |
Residual value guarantees | DuPont | ||
Guarantor Obligations [Line Items] | ||
Maximum Future Payments | 36 | 37 |
Recorded Liability | $ 0 | $ 0 |
Trade financing transactions | Latin America | ||
Guarantor Obligations [Line Items] | ||
Expiration period | 1 year |
ACCUMULATED OTHER COMPREHENSI92
ACCUMULATED OTHER COMPREHENSIVE LOSS - Summary of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Apr. 01, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2016 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (10,732) | $ (8,952) | $ (8,972) | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||||
Beginning balance | $ 99,882 | $ 29,589 | $ 99,882 | $ 29,589 | 99,882 | 101,886 | 101,927 | $ 27,229 | ||
Other comprehensive income (loss) before reclassifications | (1,015) | 597 | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 292 | 151 | ||||||||
Total other comprehensive income (loss) | (2,178) | 440 | (723) | 748 | ||||||
Reclassification of Stranded Tax Effects | $ 1,057 | |||||||||
Ending balance | 99,882 | 29,589 | 99,882 | 29,589 | ||||||
Tax benefit from income taxes related to other comprehensive income items | 73 | 45 | 81 | 104 | ||||||
Unrealized Gains (Losses) on Investments | ||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||||
Beginning balance | (23) | 51 | (23) | 51 | (23) | 17 | $ 43 | |||
Other comprehensive income (loss) before reclassifications | (41) | 38 | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 2 | (30) | ||||||||
Total other comprehensive income (loss) | (39) | 8 | ||||||||
Ending balance | (23) | 51 | (23) | 51 | ||||||
Tax benefit from income taxes related to other comprehensive income items | (3) | (4) | (9) | 4 | ||||||
Cumulative translation adjustments | ||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||||
Beginning balance | (3,102) | (1,755) | (3,102) | (1,755) | (3,102) | (1,935) | (2,381) | |||
Other comprehensive income (loss) before reclassifications | (1,058) | 632 | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (2) | (6) | ||||||||
Total other comprehensive income (loss) | (1,060) | 626 | ||||||||
Ending balance | (3,102) | (1,755) | (3,102) | (1,755) | ||||||
Tax benefit from income taxes related to other comprehensive income items | 25 | 8 | 20 | 26 | ||||||
Pension and other postretirement benefit plans | ||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||||
Beginning balance | (7,593) | (7,186) | (7,593) | (7,186) | (7,593) | (6,923) | (7,389) | |||
Other comprehensive income (loss) before reclassifications | 9 | 0 | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 248 | 203 | ||||||||
Total other comprehensive income (loss) | 257 | 203 | ||||||||
Ending balance | (7,593) | (7,186) | (7,593) | (7,186) | ||||||
Tax benefit from income taxes related to other comprehensive income items | 34 | 48 | 60 | 95 | ||||||
Derivative Instruments | ||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||||
Beginning balance | (14) | (184) | (14) | (184) | (14) | (111) | (95) | |||
Other comprehensive income (loss) before reclassifications | 75 | (73) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 44 | (16) | ||||||||
Total other comprehensive income (loss) | 119 | (89) | ||||||||
Ending balance | (14) | (184) | (14) | (184) | ||||||
Tax benefit from income taxes related to other comprehensive income items | 17 | (7) | 10 | (21) | ||||||
Total Accum Other Comp Loss | ||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||||
Beginning balance | (10,732) | (9,074) | (10,732) | (9,074) | $ (10,732) | (8,952) | $ (8,972) | $ (9,822) | $ (9,822) | |
Total other comprehensive income (loss) | (723) | 748 | ||||||||
Ending balance | $ (10,732) | $ (9,074) | (10,732) | $ (9,074) | ||||||
Accounting Standards Update 2018-02 [Domain] | ||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||||
Reclassification of Stranded Tax Effects | (1,057) | |||||||||
Accounting Standards Update 2018-02 [Domain] | Unrealized Gains (Losses) on Investments | ||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||||
Reclassification of Stranded Tax Effects | (1) | |||||||||
Accounting Standards Update 2018-02 [Domain] | Cumulative translation adjustments | ||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||||
Reclassification of Stranded Tax Effects | (107) | |||||||||
Accounting Standards Update 2018-02 [Domain] | Pension and other postretirement benefit plans | ||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||||
Reclassification of Stranded Tax Effects | (927) | |||||||||
Accounting Standards Update 2018-02 [Domain] | Derivative Instruments | ||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||||
Reclassification of Stranded Tax Effects | $ (22) | |||||||||
Accounting Standards Update 2016-01 [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 20 | |||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||||
Beginning balance | 0 | |||||||||
Accounting Standards Update 2016-01 [Member] | Unrealized Gains (Losses) on Investments | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 20 |
ACCUMULATED OTHER COMPREHENSI93
ACCUMULATED OTHER COMPREHENSIVE LOSS - Summary of Reclassifications Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period (net of tax) | $ (292) | $ (151) | ||
Sundry income (expense) - net | $ 178 | $ 322 | 293 | (122) |
Unrealized gains (losses) on investments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period (net of tax) | (2) | 30 | ||
Cumulative translation adjustments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period (net of tax) | 2 | 6 | ||
Pension and other postretirement benefit plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period (net of tax) | (248) | (203) | ||
Derivative Instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period (net of tax) | (44) | 16 | ||
Reclassification out of Accumulated Other Comprehensive Loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period (net of tax) | 144 | 65 | 292 | 151 |
Reclassification out of Accumulated Other Comprehensive Loss | Unrealized gains (losses) on investments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | 1 | (35) | 3 | (47) |
Tax benefit | 0 | 13 | (1) | 17 |
Total reclassifications for the period (net of tax) | 1 | (22) | 2 | (30) |
Reclassification out of Accumulated Other Comprehensive Loss | Cumulative translation adjustments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Sundry income (expense) - net | (2) | (6) | (2) | (6) |
Reclassification out of Accumulated Other Comprehensive Loss | Pension and other postretirement benefit plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | 156 | 149 | 310 | 298 |
Tax benefit | (34) | (48) | (62) | (95) |
Total reclassifications for the period (net of tax) | 122 | 101 | 248 | 203 |
Reclassification out of Accumulated Other Comprehensive Loss | Derivative Instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | 26 | (8) | 52 | (15) |
Tax benefit | (3) | 0 | (8) | (1) |
Total reclassifications for the period (net of tax) | $ 23 | $ (8) | $ 44 | $ (16) |
NONCONTROLLING INTERESTS - Summ
NONCONTROLLING INTERESTS - Summary of Noncontrolling Interests (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Noncontrolling Interest [Line Items] | ||||
Noncontrolling Interest, Decrease From Dividends To Joint Venture | $ 6 | $ 3 | $ 6 | $ 3 |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Balance at beginning of period | 1,664 | 1,274 | 1,597 | 1,242 |
Net income attributable to noncontrolling interests | 35 | 38 | 79 | 65 |
Distributions to noncontrolling interests | (46) | (27) | (73) | (48) |
Noncontrolling Interest, Decrease from Deconsolidation | 0 | 119 | 0 | 119 |
Cumulative translation adjustments | (34) | 3 | (40) | 28 |
Other | 1 | (1) | 1 | 0 |
Balance at end of period | 1,620 | 1,168 | 1,620 | 1,168 |
Merger | ||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Acquisition of noncontrolling interests | $ 0 | $ 0 | $ 56 | $ 0 |
PENSION PLANS AND OTHER POSTR95
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Summary of Net Periodic Benefit Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | $ 113 | $ 1 | $ 223 | $ 2 |
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 165 | 126 | 332 | 251 |
Interest cost | 406 | 220 | 814 | 439 |
Expected return on plan assets | 705 | 385 | 1,414 | 768 |
Amortization of prior service credit | (6) | (6) | (12) | (12) |
Amortization of net gain (loss) | (169) | (158) | (340) | (315) |
Curtailment/settlement 1 | 4 | 6 | 4 | 6 |
Net periodic benefit cost | 25 | 107 | 56 | 219 |
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 5 | 3 | 10 | 6 |
Interest cost | 33 | 13 | 65 | 27 |
Amortization of net gain (loss) | 6 | 1 | 12 | 3 |
Net periodic benefit cost | $ 32 | $ 15 | $ 63 | $ 30 |
STOCK-BASED COMPENSATION (Dow S
STOCK-BASED COMPENSATION (Dow Stock Incentive Plan) (Details) - The Dow Chemical Company 2012 Stock Incentive Plan [Member] shares in Millions | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 6.3 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 71.85 |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 15.46 |
Deferred Compensation, Share-based Payments [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 1.9 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 71.83 |
STOCK-BASED COMPENSATION (DuPon
STOCK-BASED COMPENSATION (DuPont) (Details) - $ / shares | Aug. 31, 2017 | Mar. 31, 2018 |
DuPont Equity And Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 3,300,000 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 71.85 | |
DuPont Equity And Incentive Plan [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 15.46 | |
DuPont Equity And Incentive Plan [Member] | RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 800,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 71.75 | |
Common Stock | Merger | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock, conversion ratio (in shares) | 1.2820 |
FINANCIAL INSTRUMENTS (Summary
FINANCIAL INSTRUMENTS (Summary of Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash Equivalents, at Carrying Value | $ 4,279 | $ 4,279 | $ 6,927 | |
Cash Equivalents, Accumulated Gross Unrealized Gain, Before Tax | 0 | 0 | 0 | |
Cash Equivalents, Accumulated Gross Unrealized Loss, Before Tax | 0 | 0 | 0 | |
Cash Equivalents, Fair Value | 4,279 | 4,279 | 6,927 | |
Money Market Funds, at Carrying Value | 516 | 516 | 558 | |
Money Market Funds, Accumulated Gross Unrealized Gain, Before Tax | 0 | 0 | 0 | |
Money Market Funds, Accumulated Gross Unrealized Loss, Before Tax | 0 | 0 | 0 | |
Money Market Funds, Fair Value | 516 | 516 | 558 | |
Marketable Securities | 505 | 505 | 956 | |
Marketable Securities, Current | 507 | 507 | 956 | |
Available-for-sale Debt Securities, Amortized Cost Basis, Noncurrent | 1,591 | 1,591 | 1,341 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, Noncurrent, before Tax | 30 | 30 | 45 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, Noncurrent, before Tax | 52 | 52 | 14 | |
Available-for-sale Securities, Debt Securities, Noncurrent | 1,569 | 1,569 | 1,372 | |
Equity Securities, Amortized Cost Basis | 154 | 154 | 164 | |
Equity Securities, Accumulated Gross Unrealized Gain, Before Tax | 20 | 20 | 2 | |
Equity Securities, Accumulated Gross Unrealized Loss, Before Tax | 13 | 13 | 26 | |
Equity Securities, Fair Value | 161 | 161 | 140 | |
Other Investments and Securities, at Cost | 1,745 | 1,745 | 1,505 | |
Other Investments and Securities, Accumulated Gross Unrealized Gain, Before Tax | 50 | 50 | 47 | |
Other Investments and Securities, Accumulated Gross Unrealized Loss, Before Tax | 65 | 65 | 40 | |
Other Investments | 1,730 | 1,730 | 1,512 | |
Cash and Restricted Cash Equivalents, Marketable Securities and Other Investments, Amortized Cost Basis | 7,045 | 7,045 | 9,946 | |
Cash and Restricted Cash Equivalents, Marketable Securities and Other Investments, Accumulated Gross Unrealized Gain, Before Tax | 52 | 52 | 47 | |
Cash and Restricted Cash Equivalents, Marketable Securities and Other Investments, Accumulated Gross Unrealized Loss, Before Tax | 65 | 65 | 40 | |
Cash and Restricted Cash Equivalents, Marketable Securities and Other Investments, Fair Value | 7,032 | 7,032 | 9,953 | |
Long-term debt | 31,456 | 31,456 | 32,123 | |
Long Term Debt, Accumulated Gross Unrealized Gain, Before Tax | 467 | 467 | 69 | |
Long Term Debt, Accumulated Gross Unrealized Loss, Before Tax | 1,312 | 1,312 | 2,121 | |
Long-term Debt, Fair Value | 32,301 | 32,301 | 34,175 | |
Derivative Assets (Liabilities), Accumulated Gross Unrealized Gain, Before Tax | 464 | 464 | 161 | |
Derivative Assets (Liabilities), Accumulated Gross Unrealized Loss, Before Tax | 330 | 330 | 419 | |
Derivative Assets (Liabilities), at Fair Value, Net | 134 | 134 | (258) | |
Proceeds from sales of available-for-sale securities | 625 | $ 132 | ||
Gross realized gains | 15 | 3 | ||
Gross realized losses | 18 | $ 0 | ||
Proceeds from Sale and Maturity of Held-to-maturity Securities | 1,576 | |||
Equity Securities, Net Unrealized Gain | (1) | 7 | ||
Cost Method Investments | 96 | 96 | ||
Marketable Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis, Current | 131 | 131 | 4 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, Current, before Tax | 2 | 2 | 0 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, Current, before Tax | 0 | 0 | 0 | |
Available-for-sale Securities, Debt Securities, Current | 133 | 133 | 4 | |
Held-to-maturity Securities | 374 | 374 | 952 | |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | 0 | 0 | |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 0 | 0 | 0 | |
Held-to-maturity Securities, Fair Value | 374 | 374 | 952 | |
Investment Owned, Unrecognized Unrealized Appreciation | 2 | 2 | 0 | |
Investment Owned, Unrecognized Unrealized Depreciation | 0 | 0 | 0 | |
US Treasury and Government [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis, Noncurrent | 678 | 678 | 637 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, Noncurrent, before Tax | 8 | 8 | 13 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, Noncurrent, before Tax | 24 | 24 | 11 | |
Available-for-sale Securities, Debt Securities, Noncurrent | 662 | 662 | 639 | |
Corporate Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis, Noncurrent | 913 | 913 | 704 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, Noncurrent, before Tax | 22 | 22 | 32 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, Noncurrent, before Tax | 28 | 28 | 3 | |
Available-for-sale Securities, Debt Securities, Noncurrent | 907 | 907 | 733 | |
Interest Rate Swap [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Derivative Assets (Liabilities), Accumulated Gross Unrealized Gain, Before Tax | 0 | 0 | 0 | |
Derivative Assets (Liabilities), Accumulated Gross Unrealized Loss, Before Tax | 39 | 39 | 4 | |
Derivative Assets (Liabilities), at Fair Value, Net | (39) | (39) | (4) | |
Commodity Contract [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Derivative Assets (Liabilities), Accumulated Gross Unrealized Gain, Before Tax | 163 | 163 | 130 | |
Derivative Assets (Liabilities), Accumulated Gross Unrealized Loss, Before Tax | 212 | 212 | 256 | |
Derivative Assets (Liabilities), at Fair Value, Net | (49) | (49) | (126) | |
Foreign Exchange Contract [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Derivative Assets (Liabilities), Accumulated Gross Unrealized Gain, Before Tax | 301 | 301 | 31 | |
Derivative Assets (Liabilities), Accumulated Gross Unrealized Loss, Before Tax | 79 | 79 | 159 | |
Derivative Assets (Liabilities), at Fair Value, Net | 222 | 222 | (128) | |
Merger | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Long Term Debt, Accumulated Fair Value Adjustment | 419 | 419 | 492 | |
Debt [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Long Term Debt, Accumulated Fair Value Adjustment | 18 | 18 | $ 19 | |
Derivative, Notional Amount | $ 2,990 | $ 2,990 |
FINANCIAL INSTRUMENTS (Derivati
FINANCIAL INSTRUMENTS (Derivatives) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | $ 615 | $ 615 | $ 319 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 151 | 151 | 158 | ||
Derivative Asset | 464 | 464 | 161 | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 438 | 438 | 591 | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 108 | 108 | 172 | ||
Derivative Liability | 330 | 330 | 419 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 6 | 6 | 26 | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 43 | 43 | 0 | ||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | (1) | (1) | |||
Price Risk Cash Flow Hedge Unrealized Gain (Loss) to be Reclassified During Next 12 Months | (27) | (27) | |||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | 9 | 9 | |||
Interest Rate Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | (30) | (30) | (3) | ||
Designated as Hedging Instrument [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 316 | 316 | 141 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 49 | 49 | 55 | ||
Derivative Asset | 267 | 267 | 86 | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 293 | 293 | 352 | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 50 | 50 | 73 | ||
Derivative Liability | 243 | 243 | 279 | ||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Notional Amount | 2,536 | 2,536 | |||
Not Designated as Hedging Instrument [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 299 | 299 | 178 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 102 | 102 | 103 | ||
Derivative Asset | 197 | 197 | 75 | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 145 | 145 | 239 | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 58 | 58 | 99 | ||
Derivative Liability | 87 | 87 | 140 | ||
Accounts and notes receivable - Other | Level 2 | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 1 | 1 | |||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 1 | 1 | |||
Derivative Asset | 0 | 0 | |||
Other Current Assets [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 158 | 158 | 51 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 42 | 42 | 46 | ||
Derivative Asset | 116 | 116 | 5 | ||
Other Current Assets [Member] | Designated as Hedging Instrument [Member] | Commodity Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 53 | 53 | 20 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 4 | 4 | 4 | ||
Derivative Asset | 49 | 49 | 16 | ||
Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 282 | 282 | 121 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 97 | 97 | 95 | ||
Derivative Asset | 185 | 185 | 26 | ||
Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 11 | 11 | 50 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 4 | 4 | 5 | ||
Derivative Asset | 7 | 7 | 45 | ||
Deferred Charges And Other Assets [Member] | Designated as Hedging Instrument [Member] | Commodity Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 104 | 104 | 70 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 2 | 2 | 5 | ||
Derivative Asset | 102 | 102 | 65 | ||
Deferred Charges And Other Assets [Member] | Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 6 | 6 | 7 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 1 | 1 | 3 | ||
Derivative Asset | 5 | 5 | 4 | ||
Accrued and other current liabilities | Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 44 | 44 | 109 | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 42 | 42 | 46 | ||
Derivative Liability | 2 | 2 | 63 | ||
Accrued and other current liabilities | Designated as Hedging Instrument [Member] | Commodity Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 94 | 94 | 96 | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 5 | 5 | 15 | ||
Derivative Liability | 89 | 89 | 81 | ||
Accrued and other current liabilities | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 130 | 130 | 186 | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 53 | 53 | 90 | ||
Derivative Liability | 77 | 77 | 96 | ||
Accrued and other current liabilities | Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 6 | 6 | 45 | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 4 | 4 | 6 | ||
Derivative Liability | 2 | 2 | 39 | ||
Other noncurrent obligations | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 40 | 40 | 4 | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 1 | 1 | 0 | ||
Derivative Liability | 39 | 39 | 4 | ||
Other noncurrent obligations | Designated as Hedging Instrument [Member] | Commodity Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 115 | 115 | 143 | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 2 | 2 | 12 | ||
Derivative Liability | 113 | 113 | 131 | ||
Other noncurrent obligations | Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 9 | 9 | 8 | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 1 | 1 | 3 | ||
Derivative Liability | 8 | 8 | $ 5 | ||
Other Nonoperating Income (Expense) [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 259 | $ (193) | $ 61 | $ (160) |
FINANCIAL INSTRUMENTS (Addition
FINANCIAL INSTRUMENTS (Additional Information) (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Securities for Reverse Repurchase Agreements | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Recurring Measured Fair Values (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Assets, Fair Value Disclosure [Abstract] | ||
Interests in trade accounts receivable conduits | $ 24 | $ 677 |
Derivative assets | 615 | 319 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Long-term debt | 32,301 | 34,175 |
Derivative liabilities | 438 | 591 |
Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents and restricted cash equivalents | 4,795 | 7,485 |
Marketable securities | 507 | 956 |
Interests in trade accounts receivable conduits | 24 | 677 |
Equity securities | 161 | 140 |
Total assets at fair value | 7,671 | 10,949 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Long-term debt | 32,301 | 34,175 |
Total liabilities at fair value | 32,739 | 34,766 |
Recurring | Interest rates | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 1 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 40 | 4 |
Recurring | Commodities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 174 | 147 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 224 | 292 |
Recurring | Foreign currency | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 440 | 172 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 174 | 295 |
Recurring | Government debt | ||
Assets, Fair Value Disclosure [Abstract] | ||
Debt securities | 662 | 639 |
Recurring | Corporate bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Debt securities | 907 | 733 |
Recurring | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents and restricted cash equivalents | 0 | 0 |
Marketable securities | 0 | 0 |
Interests in trade accounts receivable conduits | 0 | 0 |
Equity securities | 22 | 88 |
Total assets at fair value | 61 | 135 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Long-term debt | 0 | 0 |
Total liabilities at fair value | 20 | 31 |
Recurring | Level 1 | Interest rates | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 0 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | Commodities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 39 | 47 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 20 | 31 |
Recurring | Level 1 | Foreign currency | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | Government debt | ||
Assets, Fair Value Disclosure [Abstract] | ||
Debt securities | 0 | 0 |
Recurring | Level 1 | Corporate bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Debt securities | 0 | 0 |
Recurring | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents and restricted cash equivalents | 4,795 | 7,485 |
Marketable securities | 507 | 956 |
Interests in trade accounts receivable conduits | 0 | 0 |
Equity securities | 139 | 52 |
Total assets at fair value | 7,586 | 10,137 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Long-term debt | 32,301 | 34,175 |
Total liabilities at fair value | 32,719 | 34,735 |
Recurring | Level 2 | Interest rates | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 1 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 40 | 4 |
Recurring | Level 2 | Commodities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 135 | 100 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 204 | 261 |
Recurring | Level 2 | Foreign currency | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 440 | 172 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 174 | 295 |
Recurring | Level 2 | Government debt | ||
Assets, Fair Value Disclosure [Abstract] | ||
Debt securities | 662 | 639 |
Recurring | Level 2 | Corporate bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Debt securities | 907 | 733 |
Recurring | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents and restricted cash equivalents | 0 | 0 |
Marketable securities | 0 | 0 |
Interests in trade accounts receivable conduits | 24 | 677 |
Equity securities | 0 | 0 |
Total assets at fair value | 24 | 677 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Long-term debt | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Recurring | Level 3 | Interest rates | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 0 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | Commodities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | Foreign currency | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | Government debt | ||
Assets, Fair Value Disclosure [Abstract] | ||
Debt securities | 0 | 0 |
Recurring | Level 3 | Corporate bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Debt securities | 0 | $ 0 |
Property, Plant and Equipment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Impairment Charges | $ 75 |
FAIR VALUE MEASUREMENTS - Su102
FAIR VALUE MEASUREMENTS - Summary of Level 3 Inputs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of period | $ 234 | $ 1,663 | $ 677 | $ 1,237 |
Gain (loss) included in earnings | 1 | (2) | 3 | (2) |
Purchases | 0 | 1,386 | 0 | 2,363 |
Settlements | (211) | (1,363) | (656) | (1,914) |
Balance at end of period | $ 24 | $ 1,684 | $ 24 | $ 1,684 |
VARIABLE INTEREST ENTITIES - As
VARIABLE INTEREST ENTITIES - Assets And Liabilities Of Consolidated VIEs (Details) - Primary beneficiary - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Total assets | $ 1,078 | $ 1,195 |
Total liabilities | 507 | 593 |
Cash and cash equivalents (variable interest entities restricted) | ||
Variable Interest Entity [Line Items] | ||
Pledged current assets | 116 | 107 |
Other Current Assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Pledged current assets | 129 | 131 |
Net property (variable interest entities restricted | ||
Variable Interest Entity [Line Items] | ||
Noncurrent assets | 786 | 907 |
Other noncurrent assets | ||
Variable Interest Entity [Line Items] | ||
Noncurrent assets | 47 | 50 |
Current liabilities | ||
Variable Interest Entity [Line Items] | ||
Current liabilities | 325 | 303 |
Current liabilities | Monetizing Accounts Receivable VIE | ||
Variable Interest Entity [Line Items] | ||
Current liabilities | 1 | 1 |
Current liabilities - nonrecourse | 0 | 0 |
Long term debt VIE | ||
Variable Interest Entity [Line Items] | ||
Noncurrent liabilities | 147 | 249 |
Other noncurrent obligations | ||
Variable Interest Entity [Line Items] | ||
Noncurrent liabilities | 35 | 41 |
Current assets | Monetizing Accounts Receivable VIE | ||
Variable Interest Entity [Line Items] | ||
Pledged current assets | 0 | 0 |
Current assets | $ 7 | $ 671 |
VARIABLE INTEREST ENTITIES - Ad
VARIABLE INTEREST ENTITIES - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | $ 0 | $ 0 |
Equity method investment | 5,214 | 5,336 |
Not primary beneficiary | Hemlock Semiconductor L.L.C. | ||
Variable Interest Entity [Line Items] | ||
Investment basis | (717) | (752) |
Not primary beneficiary | Silicon joint ventures | ||
Variable Interest Entity [Line Items] | ||
Equity method investment | 102 | 103 |
Not primary beneficiary | AgroFresh Solutions, Inc. | ||
Variable Interest Entity [Line Items] | ||
Equity method investment | 42 | 51 |
Other Receivables | 0 | 4 |
Not primary beneficiary | Dow | Hemlock Semiconductor L.L.C. | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | $ 0 | $ 0 |
SEGMENTS AND GEOGRAPHIC REGI105
SEGMENTS AND GEOGRAPHIC REGIONS - Summary of Operating Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 24,245 | $ 13,834 | $ 45,755 | $ 27,064 |
Operating Income (Loss) Before Interest, Taxes, Depreciation,Amortization, Foreign Exchange Gains (Losses), And Significant Items | 5,676 | 10,547 | ||
Pro forma Operating EBITDA | 4,393 | 9,007 | ||
Equity in earnings (losses) of nonconsolidated affiliates | 250 | 54 | 507 | 250 |
Agriculture | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 5,730 | 1,629 | 9,538 | 3,197 |
Operating Income (Loss) Before Interest, Taxes, Depreciation,Amortization, Foreign Exchange Gains (Losses), And Significant Items | 1,685 | 2,576 | ||
Pro forma Operating EBITDA | 1,165 | 2,626 | ||
Equity in earnings (losses) of nonconsolidated affiliates | 3 | 2 | 2 | 4 |
Performance Materials & Coatings | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,599 | 2,273 | 4,903 | 4,352 |
Operating Income (Loss) Before Interest, Taxes, Depreciation,Amortization, Foreign Exchange Gains (Losses), And Significant Items | 569 | 1,197 | ||
Pro forma Operating EBITDA | 540 | 1,021 | ||
Equity in earnings (losses) of nonconsolidated affiliates | 36 | 41 | 77 | 132 |
Industrial Intermediates & Infrastructure | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 3,885 | 3,015 | 7,600 | 5,866 |
Operating Income (Loss) Before Interest, Taxes, Depreciation,Amortization, Foreign Exchange Gains (Losses), And Significant Items | 682 | 1,336 | ||
Pro forma Operating EBITDA | 417 | 929 | ||
Equity in earnings (losses) of nonconsolidated affiliates | 96 | (13) | 245 | 60 |
Packaging & Specialty Plastics | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 6,099 | 5,079 | 12,109 | 10,104 |
Operating Income (Loss) Before Interest, Taxes, Depreciation,Amortization, Foreign Exchange Gains (Losses), And Significant Items | 1,330 | 2,631 | ||
Pro forma Operating EBITDA | 1,163 | 2,277 | ||
Equity in earnings (losses) of nonconsolidated affiliates | 108 | 33 | 167 | 66 |
Electronics & Imaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,203 | 677 | 2,356 | 1,332 |
Operating Income (Loss) Before Interest, Taxes, Depreciation,Amortization, Foreign Exchange Gains (Losses), And Significant Items | 372 | 729 | ||
Pro forma Operating EBITDA | 410 | 737 | ||
Equity in earnings (losses) of nonconsolidated affiliates | 6 | 0 | 13 | 0 |
Nutrition & Biosciences | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,775 | 277 | 3,495 | 534 |
Operating Income (Loss) Before Interest, Taxes, Depreciation,Amortization, Foreign Exchange Gains (Losses), And Significant Items | 433 | 851 | ||
Pro forma Operating EBITDA | 318 | 635 | ||
Equity in earnings (losses) of nonconsolidated affiliates | 5 | 2 | 8 | 6 |
Transportation & Advanced Polymers | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,468 | 298 | 2,893 | 588 |
Operating Income (Loss) Before Interest, Taxes, Depreciation,Amortization, Foreign Exchange Gains (Losses), And Significant Items | 446 | 883 | ||
Pro forma Operating EBITDA | 308 | 629 | ||
Equity in earnings (losses) of nonconsolidated affiliates | 1 | 0 | 4 | 0 |
Safety & Construction | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,411 | 490 | 2,710 | 924 |
Operating Income (Loss) Before Interest, Taxes, Depreciation,Amortization, Foreign Exchange Gains (Losses), And Significant Items | 341 | 695 | ||
Pro forma Operating EBITDA | 262 | 554 | ||
Equity in earnings (losses) of nonconsolidated affiliates | 8 | 0 | 13 | 0 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 75 | 96 | 151 | 167 |
Operating Income (Loss) Before Interest, Taxes, Depreciation,Amortization, Foreign Exchange Gains (Losses), And Significant Items | (182) | (351) | ||
Pro forma Operating EBITDA | (190) | (401) | ||
Equity in earnings (losses) of nonconsolidated affiliates | $ (13) | (11) | $ (22) | (18) |
Pro Forma | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 20,717 | 41,184 | ||
Pro Forma | Agriculture | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 4,595 | 9,644 | ||
Pro Forma | Performance Materials & Coatings | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,255 | 4,318 | ||
Pro Forma | Industrial Intermediates & Infrastructure | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 3,013 | 5,860 | ||
Pro Forma | Packaging & Specialty Plastics | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 5,428 | 10,810 | ||
Pro Forma | Electronics & Imaging | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,221 | 2,385 | ||
Pro Forma | Nutrition & Biosciences | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,494 | 2,918 | ||
Pro Forma | Transportation & Advanced Polymers | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,284 | 2,535 | ||
Pro Forma | Safety & Construction | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,329 | 2,542 | ||
Pro Forma | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 98 | $ 172 |
SEGMENTS AND GEOGRAPHIC REGI106
SEGMENTS AND GEOGRAPHIC REGIONS - Summary of Reconciliation of Operating EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | |||||
Income from continuing operations, net of tax | $ 1,803 | $ 1,359 | $ 2,956 | $ 2,274 | |
Provision for income taxes on continuing operations | 565 | 455 | 954 | 668 | |
Income from continuing operations before income taxes | 2,368 | 1,814 | 3,910 | 2,942 | |
Depreciation and amortization | 1,496 | 739 | 2,980 | 1,517 | |
Interest income | 51 | 22 | 106 | 47 | |
Interest expense and amortization of debt discount | 360 | 226 | 710 | 445 | |
Foreign exchange gains (losses), net | (57) | (30) | (205) | (56) | |
Foreign exchange losses | (57) | (155) | |||
Pro forma adjustments | 1,284 | 3,045 | |||
Significant items | (1,446) | (322) | (2,898) | (1,049) | |
Operating EBITDA | $ 5,676 | 10,547 | |||
Pro forma Operating EBITDA | $ 4,393 | $ 9,007 | |||
Foreign Exchange Contract [Member] | DuPont | |||||
Segment Reporting Information [Line Items] | |||||
Foreign exchange gains (losses), net | $ 50 | $ 50 |
SEGMENTS AND GEOGRAPHIC REGI107
SEGMENTS AND GEOGRAPHIC REGIONS - Summary of Certain Items by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Gain on sale of business/entity | $ (17) | $ 7 | $ 3 | $ 169 |
Adjustment related to Dow Silicones ownership restructure | (41) | 0 | (41) | 0 |
Integration and separation costs | (558) | (296) | (1,015) | (538) |
Inventory step-up amortization | (682) | (1,385) | ||
Litigation related charges, awards and adjustments | 137 | (332) | ||
Restructuring and asset related charges - net | (189) | (148) | (451) | (300) |
Transaction Costs And Productivity Actions | (22) | (48) | ||
Income tax related item 5 | (50) | |||
Total | (1,446) | (322) | (2,898) | (1,049) |
Agriculture | ||||
Segment Reporting Information [Line Items] | ||||
Gain on sale of business/entity | 24 | 0 | 24 | 0 |
Integration and separation costs | 0 | 0 | 0 | 0 |
Inventory step-up amortization | (676) | (1,315) | ||
Litigation related charges, awards and adjustments | 0 | (469) | ||
Restructuring and asset related charges - net | (37) | 0 | (95) | 0 |
Transaction Costs And Productivity Actions | 0 | 0 | ||
Income tax related item 5 | 0 | |||
Total | (689) | 0 | (1,386) | (469) |
Performance Materials & Coatings | ||||
Segment Reporting Information [Line Items] | ||||
Gain on sale of business/entity | 0 | 0 | ||
Adjustment related to Dow Silicones ownership restructure | (41) | (41) | ||
Integration and separation costs | 0 | 0 | 0 | 0 |
Inventory step-up amortization | 0 | 0 | ||
Litigation related charges, awards and adjustments | 0 | 0 | ||
Restructuring and asset related charges - net | (15) | 3 | (14) | 3 |
Transaction Costs And Productivity Actions | 0 | 0 | ||
Income tax related item 5 | 0 | |||
Total | (56) | 3 | (55) | 3 |
Industrial Intermediates & Infrastructure | ||||
Segment Reporting Information [Line Items] | ||||
Gain on sale of business/entity | 0 | 0 | 20 | 0 |
Integration and separation costs | 0 | 0 | 0 | 0 |
Inventory step-up amortization | 0 | 0 | ||
Litigation related charges, awards and adjustments | 0 | 0 | ||
Restructuring and asset related charges - net | 0 | 0 | (11) | 0 |
Transaction Costs And Productivity Actions | 0 | 0 | ||
Income tax related item 5 | 0 | |||
Total | 0 | 0 | 9 | 0 |
Packaging & Specialty Plastics | ||||
Segment Reporting Information [Line Items] | ||||
Gain on sale of business/entity | 0 | 0 | 0 | 0 |
Integration and separation costs | 0 | 0 | 0 | 0 |
Inventory step-up amortization | (2) | (2) | ||
Litigation related charges, awards and adjustments | 137 | 137 | ||
Restructuring and asset related charges - net | (3) | 0 | (9) | 0 |
Transaction Costs And Productivity Actions | 0 | 0 | ||
Income tax related item 5 | 0 | |||
Total | (5) | 137 | (11) | 137 |
Electronics & Imaging | ||||
Segment Reporting Information [Line Items] | ||||
Gain on sale of business/entity | 0 | 0 | 0 | 0 |
Integration and separation costs | 0 | 0 | 0 | 0 |
Inventory step-up amortization | 0 | 0 | ||
Litigation related charges, awards and adjustments | 0 | 0 | ||
Restructuring and asset related charges - net | (1) | (1) | (2) | (3) |
Transaction Costs And Productivity Actions | 0 | 0 | ||
Income tax related item 5 | 0 | |||
Total | (1) | (1) | (2) | (3) |
Nutrition & Biosciences | ||||
Segment Reporting Information [Line Items] | ||||
Gain on sale of business/entity | 0 | 0 | 0 | 162 |
Integration and separation costs | 0 | 0 | 0 | 0 |
Inventory step-up amortization | (4) | (67) | ||
Litigation related charges, awards and adjustments | 0 | 0 | ||
Restructuring and asset related charges - net | 0 | 0 | 0 | (6) |
Transaction Costs And Productivity Actions | 0 | 0 | ||
Income tax related item 5 | 0 | |||
Total | (4) | 0 | (67) | 156 |
Transportation & Advanced Polymers | ||||
Segment Reporting Information [Line Items] | ||||
Gain on sale of business/entity | 0 | 0 | 0 | 0 |
Integration and separation costs | 0 | 0 | 0 | 0 |
Inventory step-up amortization | 0 | 0 | ||
Litigation related charges, awards and adjustments | 0 | 0 | ||
Restructuring and asset related charges - net | 0 | (2) | 1 | (4) |
Transaction Costs And Productivity Actions | 0 | 0 | ||
Income tax related item 5 | 0 | |||
Total | 0 | (2) | 1 | (4) |
Safety & Construction | ||||
Segment Reporting Information [Line Items] | ||||
Gain on sale of business/entity | 0 | 0 | 0 | 0 |
Integration and separation costs | 0 | 0 | 0 | 0 |
Inventory step-up amortization | 0 | (1) | ||
Litigation related charges, awards and adjustments | 0 | 0 | ||
Restructuring and asset related charges - net | (12) | (157) | (19) | (265) |
Transaction Costs And Productivity Actions | 0 | 0 | ||
Income tax related item 5 | 0 | |||
Total | (12) | (157) | (20) | (265) |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Gain on sale of business/entity | 0 | 7 | 0 | 7 |
Integration and separation costs | (558) | (296) | (1,015) | (538) |
Inventory step-up amortization | 0 | 0 | ||
Litigation related charges, awards and adjustments | 0 | 0 | ||
Restructuring and asset related charges - net | (121) | 9 | (302) | (25) |
Transaction Costs And Productivity Actions | (22) | (48) | ||
Income tax related item 5 | (50) | |||
Total | $ (679) | $ (302) | $ (1,367) | $ (604) |
Uncategorized Items - dwdp-2018
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (41,000,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 996,000,000 |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,037,000,000) |