Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 30, 2013 | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | DOW CHEMICAL CO /DE/ |
Entity Central Index Key | 29915 |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | 30-Sep-13 |
Document Fiscal Year Focus | 2013 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | FALSE |
Entity Common Stock, Shares Outstanding | 1,212,865,976 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Net Sales | $13,734 | $13,637 | $42,694 | $42,869 | ||
Cost of sales | 11,716 | 11,368 | 35,526 | 35,853 | ||
Research and development expenses | 418 | 434 | 1,270 | 1,245 | ||
Selling, general and administrative expenses | 698 | 739 | 2,186 | 2,120 | ||
Amortization of intangibles | 114 | 117 | 344 | 361 | ||
Restructuring charges | 0 | 0 | 0 | 357 | ||
Equity in earnings of nonconsolidated affiliates | 322 | 175 | 780 | 492 | ||
Sundry income (expense) - net | 59 | -21 | 2,080 | 23 | ||
Interest income | 11 | 10 | 29 | 26 | ||
Interest expense and amortization of debt discount | 264 | 318 | 839 | 959 | ||
Income Before Income Taxes | 916 | 825 | 5,418 | 2,515 | ||
Provision for income taxes | 231 | 234 | 1,630 | 664 | ||
Net Income | 685 | 591 | 3,788 | 1,851 | ||
Net income attributable to noncontrolling interests | 6 | 9 | 49 | 38 | ||
Net Income Attributable to The Dow Chemical Company | 679 | 582 | 3,739 | 1,813 | ||
Preferred stock dividends | 85 | 85 | [1] | 255 | 255 | [1] |
Net Income Available for The Dow Chemical Company Common Stockholders | 594 | 497 | 3,484 | 1,558 | ||
Per Common Share Data: | ||||||
Earnings per common share - basic | $0.50 | $0.42 | $2.92 | $1.32 | ||
Earnings per common share - diluted | $0.49 | $0.42 | $2.88 | $1.31 | ||
Common stock dividends declared per share of common stock | $0.32 | $0.32 | $0.96 | $0.89 | ||
Weighted-average common shares outstanding - basic | 1,187.40 | 1,172.70 | 1,184.90 | 1,167.80 | ||
Weighted-average common shares outstanding - diluted | 1,194.20 | 1,179.50 | 1,287.80 | 1,174.90 | ||
Depreciation | 509 | 514 | 1,518 | 1,530 | ||
Capital Expenditures | $566 | $622 | $1,418 | $1,605 | ||
[1] | Preferred stock dividends were not added back in the calculation of diluted earnings per share for the three-month period ended September 30, 2013 and the three- and nine-month periods ended September 30, 2012 because the effect of adding them back would have been antidilutive. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net Income | $685 | $591 | $3,788 | $1,851 |
Other Comprehensive Income, Net of Tax | ||||
Net change in unrealized gains (losses) on investments | 20 | 31 | -11 | 63 |
Translation adjustments | 303 | 339 | 34 | 165 |
Adjustments to pension and other postretirement benefit plans | 149 | 97 | 432 | 279 |
Net gains (losses) on cash flow hedging derivative instruments | -16 | 19 | -9 | 8 |
Other comprehensive income | 456 | 486 | 446 | 515 |
Comprehensive Income | 1,141 | 1,077 | 4,234 | 2,366 |
Comprehensive income attributable to noncontrolling interests, net of tax | 9 | 9 | 18 | 38 |
Comprehensive Income Attributable to The Dow Chemical Company | $1,132 | $1,068 | $4,216 | $2,328 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents (variable interest entities restricted - 2013: $170; 2012: $146) | $5,272 | $4,318 |
Accounts and notes receivable: | ||
Trade (net of allowance for doubtful receivables - 2013: $131; 2012: $121) | 4,896 | 5,074 |
Other | 4,880 | 4,605 |
Inventories | 8,892 | 8,476 |
Deferred income tax assets - current | 751 | 877 |
Other current assets | 318 | 334 |
Total current assets | 25,009 | 23,684 |
Investments | ||
Investment in nonconsolidated affiliates | 4,244 | 4,121 |
Other investments (investments carried at fair value - 2013: $2,004; 2012: $2,061) | 2,496 | 2,565 |
Noncurrent receivables | 341 | 313 |
Total investments | 7,081 | 6,999 |
Property | ||
Property | 54,895 | 54,366 |
Less accumulated depreciation | 37,535 | 36,846 |
Net property (variable interest entities restricted - 2013: $2,625; 2012: $2,554) | 17,360 | 17,520 |
Other Assets | ||
Goodwill | 12,767 | 12,739 |
Other intangible assets (net of accumulated amortization - 2013: $3,168; 2012: $2,785) | 4,383 | 4,711 |
Deferred income tax assets - noncurrent | 2,930 | 3,333 |
Asbestos-related insurance receivables - noncurrent | 160 | 155 |
Deferred charges and other assets | 516 | 464 |
Total other assets | 20,756 | 21,402 |
Total Assets | 70,206 | 69,605 |
Current Liabilities | ||
Notes payable | 452 | 396 |
Long-term debt due within one year | 680 | 672 |
Accounts payable: | ||
Trade | 4,864 | 5,010 |
Other | 2,340 | 2,327 |
Income taxes payable | 466 | 251 |
Deferred income tax liabilities - current | 91 | 95 |
Dividends payable | 466 | 86 |
Accrued and other current liabilities | 2,634 | 2,656 |
Total current liabilities | 11,993 | 11,493 |
Long-Term Debt (variable interest entities nonrecourse - 2013: $1,456; 2012: $1,406) | 17,487 | 19,919 |
Other Noncurrent Liabilities | ||
Deferred income tax liabilities - noncurrent | 792 | 837 |
Pension and other postretirement benefits - noncurrent | 11,020 | 11,459 |
Asbestos-related liabilities - noncurrent | 483 | 530 |
Other noncurrent obligations | 3,266 | 3,353 |
Total other noncurrent liabilities | 15,561 | 16,179 |
Redeemable Noncontrolling Interest | 147 | 147 |
Stockholders’ Equity | ||
Preferred stock, series A | 4,000 | 4,000 |
Common stock | 3,042 | 3,008 |
Additional paid-in capital | 3,701 | 3,281 |
Retained earnings | 20,830 | 18,495 |
Accumulated other comprehensive loss | -7,070 | -7,516 |
Unearned ESOP shares | -364 | -391 |
Treasury stock at cost | 134 | 0 |
The Dow Chemical Company’s stockholders’ equity | 24,005 | 20,877 |
Noncontrolling interests | 1,013 | 990 |
Total equity | 25,018 | 21,867 |
Total Liabilities and Equity | $70,206 | $69,605 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents (variable interest entities restricted) | $170 | $146 |
Accounts and notes receivable: | ||
Trade (allowance for doubtful receivables) | 131 | 121 |
Investments | ||
Other investments (investments carried at fair value) | 2,004 | 2,061 |
Property | ||
Net property (variable interest entities restricted) | 2,625 | 2,554 |
Other Assets | ||
Other intangible assets (accumulated amortization) | 3,168 | 2,785 |
Long-Term Debt | ||
Long Term Debt (Variable interest entities nonrecourse) | $1,456 | $1,406 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating Activities | ||
Net Income | $3,788 | $1,851 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,992 | 2,018 |
Provision (credit) for deferred income tax | 123 | -170 |
Earnings of nonconsolidated affiliates less than (in excess of) dividends received | -42 | 92 |
Pension contributions | -802 | -836 |
Net gain on sales of investments | -40 | -11 |
Net gain on sales of property, businesses and consolidated companies | -35 | -72 |
Other net loss | 15 | 40 |
Net gain on sale of ownership interest in nonconsolidated affiliates | -30 | 0 |
Restructuring charges | 0 | 357 |
Loss on early extinguishment of debt | 173 | 24 |
Excess tax benefits from share-based payment arrangements | -16 | -59 |
Changes in assets and liabilities, net of effects of acquired and divested companies: | ||
Accounts and notes receivable | -780 | -2,399 |
Proceeds from interests in trade accounts receivable conduits | 688 | 2,190 |
Inventories | -426 | -1,039 |
Accounts payable | -197 | -135 |
Other assets and liabilities | 1,179 | 673 |
Cash provided by operating activities | 5,590 | 2,524 |
Investing Activities | ||
Capital expenditures | -1,418 | -1,605 |
Proceeds from sale / leaseback of assets | 39 | 0 |
Proceeds from sales of property, businesses and consolidated companies | 68 | 74 |
Investments in consolidated companies, net of cash acquired | -18 | -27 |
Investments in and loans to nonconsolidated affiliates | -78 | -226 |
Distributions from nonconsolidated affiliates | 18 | 16 |
Proceeds from sale of ownership interests in nonconsolidated affiliates | 66 | 0 |
Purchases of investments | -367 | -393 |
Proceeds from sales and maturities of investments | 450 | 417 |
Cash used in investing activities | -1,240 | -1,744 |
Financing Activities | ||
Changes in short-term notes payable | 39 | -98 |
Proceeds from issuance of long-term debt | 749 | 532 |
Payments on long-term debt | -3,314 | -1,786 |
Purchases of treasury stock | -134 | 0 |
Proceeds from issuance of common stock | 247 | 207 |
Issuance costs on debt and equity securities | -5 | 0 |
Excess tax benefits from share-based payment arrangements | 16 | 59 |
Contributions from noncontrolling interests | 35 | 0 |
Distributions to noncontrolling interests | -30 | -60 |
Dividends paid to stockholders | -1,014 | -1,211 |
Cash used in financing activities | -3,411 | -2,357 |
Effect of Exchange Rate Changes on Cash | 15 | 18 |
Summary | ||
Increase (decrease) in cash and cash equivalents | 954 | -1,559 |
Cash and cash equivalents at beginning of year | 4,318 | 5,444 |
Cash and cash equivalents at end of period | $5,272 | $3,885 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Total | The Dow Chemical Company's Stockholder's Equity [Member] | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss | Unearned ESOP Shares [Member] | Treasury Stock [Member] | Noncontrolling Interests [Member] |
In Millions, unless otherwise specified | ||||||||||
Stockholders' Equity Attributable to Parent, Beginning at Dec. 31, 2011 | $4,000 | $2,961 | $2,663 | $19,087 | ($5,996) | ($434) | $0 | |||
Stockholders' Equity Attributable to Noncontrolling Interest, Beginning at Dec. 31, 2011 | 1,010 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Common stock issued | 37 | 170 | ||||||||
Stock-based compensation and allocation of ESOP shares | 279 | |||||||||
Net income available for The Dow Chemical Company common stockholders | 1,558 | 1,558 | ||||||||
Dividends declared on common stock (per share: $0.96 in 2013, $0.89 in 2012) | -1,042 | |||||||||
Other | -12 | 0 | ||||||||
Other comprehensive income | 515 | 515 | ||||||||
Shares Allocated to ESOP participants | 44 | |||||||||
Purchases | 0 | |||||||||
Net income attributable to noncontrolling interests | 38 | 38 | ||||||||
Distributions to noncontrolling interests | -60 | |||||||||
Capital contributions (noncash capital contributions 2013: $-; 2012: $97) | 97 | |||||||||
Consolidation of variable interest entity | 37 | |||||||||
Cumulative translation adjustments | 9 | |||||||||
Stockholders' Equity Attributable to Parent, Ending at Sep. 30, 2012 | 23,830 | 4,000 | 2,998 | 3,112 | 19,591 | -5,481 | -390 | 0 | ||
Stockholders' Equity Attributable to Noncontrolling Interest, Ending at Sep. 30, 2012 | 1,131 | |||||||||
Total Equity, Ending at Sep. 30, 2012 | 24,961 | |||||||||
Stockholders' Equity Attributable to Parent, Beginning at Dec. 31, 2012 | 20,877 | 4,000 | 3,008 | 3,281 | 18,495 | -7,516 | -391 | 0 | ||
Stockholders' Equity Attributable to Noncontrolling Interest, Beginning at Dec. 31, 2012 | 990 | 990 | ||||||||
Total Equity, Beginning at Dec. 31, 2012 | 21,867 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Common stock issued | 34 | 213 | ||||||||
Stock-based compensation and allocation of ESOP shares | 207 | |||||||||
Net income available for The Dow Chemical Company common stockholders | 3,484 | 3,484 | ||||||||
Dividends declared on common stock (per share: $0.96 in 2013, $0.89 in 2012) | -1,139 | |||||||||
Other | -10 | -5 | ||||||||
Other comprehensive income | 446 | 446 | ||||||||
Shares Allocated to ESOP participants | 27 | |||||||||
Purchases | -134 | |||||||||
Net income attributable to noncontrolling interests | 49 | 49 | ||||||||
Distributions to noncontrolling interests | -30 | |||||||||
Capital contributions (noncash capital contributions 2013: $-; 2012: $97) | 35 | |||||||||
Consolidation of variable interest entity | 0 | |||||||||
Cumulative translation adjustments | -26 | |||||||||
Stockholders' Equity Attributable to Parent, Ending at Sep. 30, 2013 | 24,005 | 24,005 | 4,000 | 3,042 | 3,701 | 20,830 | -7,070 | -364 | -134 | |
Stockholders' Equity Attributable to Noncontrolling Interest, Ending at Sep. 30, 2013 | 1,013 | 1,013 | ||||||||
Total Equity, Ending at Sep. 30, 2013 | $25,018 |
Consolidated_Statements_of_Equ1
Consolidated Statements of Equity (Parenthetical) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Retained Earnings | ||
Dividends declared on common stock (Per share) | $0.96 | $0.89 |
Other Significant Noncash Transaction, Value of Consideration Given | $0 | $97 |
CONSOLIDATED_FINANCIAL_STATEME
CONSOLIDATED FINANCIAL STATEMENTS | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONSOLIDATED FINANCIAL STATEMENTS | CONSOLIDATED FINANCIAL STATEMENTS |
The unaudited interim consolidated financial statements of The Dow Chemical Company and its subsidiaries (“Dow” or the “Company”) were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and reflect all adjustments (including normal recurring accruals) which, in the opinion of management, are considered necessary for the fair presentation of the results for the periods presented. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. |
RECENT_ACCOUNTING_GUIDANCE
RECENT ACCOUNTING GUIDANCE | 9 Months Ended |
Sep. 30, 2013 | |
Recent Accounting Guidance [Abstract] | |
Recent Accounting Guidance [Text Block] | RECENT ACCOUNTING GUIDANCE |
Recently Adopted Accounting Guidance | |
During the first quarter of 2013, the Company adopted Accounting Standards Update ("ASU") ASU 2011-11, "Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities," which requires entities to disclose both gross and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting agreement and ASU 2013-01, "Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Asset and Liabilities," which clarifies the scope of the offsetting disclosures of ASU 2011-11. The objective of the disclosure is to facilitate comparison between those entities that prepare their financial statements on the basis of U.S. GAAP and those entities that prepare their financial statements on the basis of International Financial Reporting Standards. The adoption of these standards was immaterial to the consolidated financial statements. | |
During the first quarter of 2013, the Company adopted ASU 2013-02, "Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income," which requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income, by component. In addition, entities are required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, entities are required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail on these amounts. See Note 16 for the disclosures related to this adoption. | |
Accounting Guidance Issued But Not Adopted as of September 30, 2013 | |
In February 2013, the Financial Accounting Standards Board ("FASB") issued ASU 2013-04, "Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date," which defines how entities measure obligations from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date and for which no guidance exists, except for obligations addressed within existing guidance in U.S. GAAP. The guidance also requires entities to disclose the nature and amount of the obligation as well as other information about those obligations. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Retrospective presentation for all comparative periods presented is required and early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance. | |
In March 2013, the FASB issued ASU 2013-05, "Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity," which defines the treatment of the release of cumulative translation adjustments upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted and prior periods should not be adjusted. The Company does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. | |
In July 2013, the FASB issued ASU 2013-11, "Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists," which defines the presentation requirements of an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted and retrospective application is permitted, but not required. The Company is currently evaluating the impact of adopting this guidance. |
RESTRUCTURING
RESTRUCTURING | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||
Restructuring And Related Activities Disclosure [Text Block] | RESTRUCTURING | |||||||||||
4Q12 Restructuring | ||||||||||||
On October 23, 2012, the Company's Board of Directors approved a restructuring plan ("4Q12 Restructuring") to advance the next stage of the Company's transformation and to address macroeconomic uncertainties. The 4Q12 Restructuring plan accelerates the Company's structural cost reduction program and will affect approximately 2,850 positions and result in the shutdown of approximately 20 manufacturing facilities. These actions are expected to be completed primarily by March 31, 2015. As a result of the 4Q12 Restructuring activities, the Company recorded pretax restructuring charges of $990 million in the fourth quarter of 2012 consisting of costs associated with exit or disposal activities of $39 million, severance costs of $375 million and asset write-downs and write-offs of $576 million. | ||||||||||||
The severance component of the 4Q12 Restructuring charge of $375 million was for the separation of approximately 2,850 employees under the terms of the Company's ongoing benefit arrangements, primarily by March 31, 2015. At December 31, 2012, severance of $8 million had been paid and a liability of $367 million remained for 2,767 employees. In the first nine months of 2013, severance of $183 million was paid, leaving a liability of $184 million for approximately 1,000 employees at September 30, 2013. | ||||||||||||
The following table summarizes the activities related to the Company's 4Q12 Restructuring reserve: | ||||||||||||
4Q12 Restructuring Activities | Costs Associated with Exit or Disposal Activities | Severance Costs | Total | |||||||||
In millions | ||||||||||||
Reserve balance at December 31, 2012 | $ | 30 | $ | 367 | $ | 397 | ||||||
Cash payments | (1 | ) | (69 | ) | (70 | ) | ||||||
Reserve balance at March 31, 2013 | $ | 29 | $ | 298 | $ | 327 | ||||||
Cash payments | (1 | ) | (59 | ) | (60 | ) | ||||||
Reserve balance at June 30, 2013 | $ | 28 | $ | 239 | $ | 267 | ||||||
Cash payments | (1 | ) | (55 | ) | (56 | ) | ||||||
Reserve balance at September 30, 2013 | $ | 27 | $ | 184 | $ | 211 | ||||||
The reserve balance is included in the consolidated balance sheets as "Accrued and other current liabilities" and "Other noncurrent obligations." | ||||||||||||
1Q12 Restructuring | ||||||||||||
On March 27, 2012, the Company's Board of Directors approved a restructuring plan ("1Q12 Restructuring") to optimize its portfolio, respond to changing and volatile economic conditions, particularly in Western Europe, and to advance the Company's Efficiency for Growth program. The 1Q12 Restructuring plan included the shutdown of a number of manufacturing facilities and the elimination of approximately 900 positions. These actions are expected to be completed primarily by December 31, 2013. As a result of the 1Q12 Restructuring activities, the Company recorded pretax restructuring charges of $357 million in the first quarter of 2012 consisting of costs associated with exit or disposal activities of $150 million, severance costs of $113 million and asset write-downs and write-offs of $94 million. The impact of these charges was shown as "Restructuring charges" in the consolidated statements of income. | ||||||||||||
The severance component of the 1Q12 Restructuring charge of $113 million was for the separation of approximately 900 employees under the terms of the Company's ongoing benefit arrangements, primarily by December 31, 2013. At December 31, 2012, severance of $82 million had been paid and a liability of $31 million remained for 248 employees. In the first nine months of 2013, severance of $26 million was paid, leaving a liability of $5 million for approximately 70 employees at September 30, 2013. | ||||||||||||
The following table summarizes the activities related to the Company's 1Q12 Restructuring reserve: | ||||||||||||
1Q12 Restructuring Activities | Costs Associated with Exit or Disposal Activities | |||||||||||
In millions | Severance Costs | Total | ||||||||||
Reserve balance at December 31, 2012 | $ | 56 | $ | 31 | $ | 87 | ||||||
Cash payments | (4 | ) | (20 | ) | (24 | ) | ||||||
Noncash settlements | (7 | ) | — | (7 | ) | |||||||
Foreign currency impact | (1 | ) | — | (1 | ) | |||||||
Reserve balance at March 31, 2013 | $ | 44 | $ | 11 | $ | 55 | ||||||
Cash payments | (4 | ) | (5 | ) | (9 | ) | ||||||
Noncash settlements | (1 | ) | — | (1 | ) | |||||||
Reserve balance at June 30, 2013 | $ | 39 | $ | 6 | $ | 45 | ||||||
Cash payments | (1 | ) | (1 | ) | (2 | ) | ||||||
Reserve balance at September 30, 2013 | $ | 38 | $ | 5 | $ | 43 | ||||||
The reserve balance is included in the consolidated balance sheets as "Accrued and other current liabilities." | ||||||||||||
Dow expects to incur additional costs in the future related to its restructuring activities, as the Company continually looks for ways to enhance the efficiency and cost effectiveness of its operations, and to ensure competitiveness across its businesses and across geographic areas. 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. |
INVENTORIES
INVENTORIES | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
INVENTORIES | INVENTORIES | |||||||
The following table provides a breakdown of inventories: | ||||||||
Inventories | Sep 30, 2013 | Dec 31, 2012 | ||||||
In millions | ||||||||
Finished goods | $ | 4,872 | $ | 4,880 | ||||
Work in process | 2,223 | 1,910 | ||||||
Raw materials | 929 | 866 | ||||||
Supplies | 868 | 820 | ||||||
Total inventories | $ | 8,892 | $ | 8,476 | ||||
The reserves reducing inventories from the first-in, first-out (“FIFO”) basis to the last-in, first-out (“LIFO”) basis amounted to $857 million at September 30, 2013 and $842 million at December 31, 2012. |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS | |||||||||||||||||||||||||||
The following table shows the carrying amount of goodwill by operating segment: | ||||||||||||||||||||||||||||
Goodwill | Electronic | Coatings | Ag | Perf | Perf | Feedstocks | Total | |||||||||||||||||||||
and | and Infra- | Sciences | Materials | Plastics | and Energy | |||||||||||||||||||||||
Functional | structure | |||||||||||||||||||||||||||
In millions | Materials | Solutions | ||||||||||||||||||||||||||
Net goodwill at Dec 31, 2012 | $ | 4,945 | $ | 4,052 | $ | 1,558 | $ | 740 | $ | 1,381 | $ | 63 | $ | 12,739 | ||||||||||||||
Sale of a Plastics Additives product line | — | — | — | (3 | ) | — | — | (3 | ) | |||||||||||||||||||
Foreign currency impact | 9 | 13 | — | 1 | 8 | — | 31 | |||||||||||||||||||||
Net goodwill at Sep 30, 2013 | $ | 4,954 | $ | 4,065 | $ | 1,558 | $ | 738 | $ | 1,389 | $ | 63 | $ | 12,767 | ||||||||||||||
The following table provides information regarding the Company’s other intangible assets: | ||||||||||||||||||||||||||||
Other Intangible Assets | At September 30, 2013 | At December 31, 2012 | ||||||||||||||||||||||||||
In millions | Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||||||
Intangible assets with finite lives: | ||||||||||||||||||||||||||||
Licenses and intellectual property | $ | 1,771 | $ | (866 | ) | $ | 905 | $ | 1,729 | $ | (747 | ) | $ | 982 | ||||||||||||||
Patents | 124 | (106 | ) | 18 | 120 | (100 | ) | 20 | ||||||||||||||||||||
Software | 1,145 | (597 | ) | 548 | 1,047 | (548 | ) | 499 | ||||||||||||||||||||
Trademarks | 686 | (329 | ) | 357 | 691 | (285 | ) | 406 | ||||||||||||||||||||
Customer related | 3,630 | (1,129 | ) | 2,501 | 3,688 | (974 | ) | 2,714 | ||||||||||||||||||||
Other | 158 | (141 | ) | 17 | 158 | (131 | ) | 27 | ||||||||||||||||||||
Total other intangible assets, finite lives | $ | 7,514 | $ | (3,168 | ) | $ | 4,346 | $ | 7,433 | $ | (2,785 | ) | $ | 4,648 | ||||||||||||||
IPR&D (1), indefinite lives | 37 | — | 37 | 63 | — | 63 | ||||||||||||||||||||||
Total other intangible assets | $ | 7,551 | $ | (3,168 | ) | $ | 4,383 | $ | 7,496 | $ | (2,785 | ) | $ | 4,711 | ||||||||||||||
-1 | In-process research and development (“IPR&D”) purchased in a business combination. | |||||||||||||||||||||||||||
The following table provides information regarding amortization expense related to intangible assets: | ||||||||||||||||||||||||||||
Amortization Expense | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
In millions | Sep 30, 2013 | Sep 30, 2012 | Sep 30, 2013 | Sep 30, 2012 | ||||||||||||||||||||||||
Other intangible assets, excluding software | $ | 114 | $ | 117 | $ | 344 | $ | 361 | ||||||||||||||||||||
Software, included in “Cost of sales” | $ | 15 | $ | 15 | $ | 48 | $ | 46 | ||||||||||||||||||||
Total estimated amortization expense for 2013 and the five succeeding fiscal years is as follows: | ||||||||||||||||||||||||||||
Estimated Amortization Expense | ||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||
2013 | $ | 527 | ||||||||||||||||||||||||||
2014 | $ | 512 | ||||||||||||||||||||||||||
2015 | $ | 494 | ||||||||||||||||||||||||||
2016 | $ | 482 | ||||||||||||||||||||||||||
2017 | $ | 448 | ||||||||||||||||||||||||||
2018 | $ | 431 | ||||||||||||||||||||||||||
FINANCIAL_INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Financial Instruments [Abstact] | ||||||||||||||||||||||||||||||||
Financial Instruments Disclosure [Text Block] | FINANCIAL INSTRUMENTS | |||||||||||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||||||
The Company’s investments in marketable securities are primarily classified as available-for-sale. | ||||||||||||||||||||||||||||||||
Investing Results | Nine Months Ended | |||||||||||||||||||||||||||||||
In millions | Sep 30, | Sep 30, | ||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Proceeds from sales of available-for-sale securities | $ | 409 | $ | 401 | ||||||||||||||||||||||||||||
Gross realized gains | $ | 63 | $ | 30 | ||||||||||||||||||||||||||||
Gross realized losses | $ | (12 | ) | $ | (10 | ) | ||||||||||||||||||||||||||
The following table summarizes the contractual maturities of the Company’s investments in debt securities: | ||||||||||||||||||||||||||||||||
Contractual Maturities of Debt Securities | ||||||||||||||||||||||||||||||||
at September 30, 2013 | ||||||||||||||||||||||||||||||||
In millions | Amortized Cost | Fair Value | ||||||||||||||||||||||||||||||
Within one year | $ | 35 | $ | 35 | ||||||||||||||||||||||||||||
One to five years | 468 | 505 | ||||||||||||||||||||||||||||||
Six to ten years | 552 | 567 | ||||||||||||||||||||||||||||||
After ten years | 142 | 160 | ||||||||||||||||||||||||||||||
Total | $ | 1,197 | $ | 1,267 | ||||||||||||||||||||||||||||
At September 30, 2013, the Company had $1,625 million ($1,701 million at December 31, 2012) of held-to-maturity securities (primarily Treasury Bills) classified as cash equivalents, as these securities had original maturities of three months or less at the time of purchase. The Company’s investments in held-to-maturity securities are held at amortized cost, which approximates fair value. At September 30, 2013, the Company had investments in money market funds of $463 million classified as cash equivalents ($252 million at December 31, 2012). | ||||||||||||||||||||||||||||||||
The net unrealized loss from mark-to-market adjustments recognized in earnings during the three-month period ended September 30, 2013 on trading securities held at September 30, 2013 was $1 million ($1 million gain during the three-month period ended September 30, 2012). The net unrealized loss from mark-to-market adjustments recognized in earnings during the nine-month period ended September 30, 2013 on trading securities held at September 30, 2013 was $11 million ($3 million gain during the nine-month period ended September 30, 2012). | ||||||||||||||||||||||||||||||||
The following table provides the fair value and gross unrealized losses of the Company’s investments that were deemed to be temporarily impaired at September 30, 2013 and December 31, 2012, aggregated by investment category: | ||||||||||||||||||||||||||||||||
Temporarily Impaired Securities Less than 12 Months (1) | ||||||||||||||||||||||||||||||||
At September 30, 2013 | At December 31, 2012 | |||||||||||||||||||||||||||||||
In millions | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||||||||
Value | Losses | Value | Losses | |||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
Government debt (2) | $ | 100 | $ | (5 | ) | $ | — | $ | — | |||||||||||||||||||||||
Corporate bonds | 165 | (5 | ) | 22 | (1 | ) | ||||||||||||||||||||||||||
Total debt securities | $ | 265 | $ | (10 | ) | $ | 22 | $ | (1 | ) | ||||||||||||||||||||||
Equity securities | 169 | (8 | ) | 30 | (2 | ) | ||||||||||||||||||||||||||
Total temporarily impaired securities | $ | 434 | $ | (18 | ) | $ | 52 | $ | (3 | ) | ||||||||||||||||||||||
-1 | Unrealized losses of 12 months or more were less than $1 million. | |||||||||||||||||||||||||||||||
-2 | U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities' obligations. | |||||||||||||||||||||||||||||||
Portfolio managers regularly review the Company’s holdings to determine if any investments are other-than-temporarily impaired. The analysis includes reviewing the amount of the impairment, as well as the length of time it has been impaired. In addition, specific guidelines for each instrument type are followed to determine if an other-than-temporary impairment has occurred. | ||||||||||||||||||||||||||||||||
For debt securities, the credit rating of the issuer, current credit rating trends, the trends of the issuer’s overall sector, the ability of the issuer to pay expected cash flows and the length of time the security has been in a loss position are considered in determining whether unrealized losses represent an other-than-temporary impairment. The Company did not have any credit-related losses during the nine-month periods ended September 30, 2013 or September 30, 2012. | ||||||||||||||||||||||||||||||||
For equity securities, the Company’s investments are primarily in Standard & Poor’s (“S&P”) 500 companies; however, the Company’s policies allow investments in companies outside of the S&P 500. The largest holdings are Exchange Traded Funds that represent the S&P 500 index or an S&P 500 sector or subset; the Company also has holdings in Exchange Traded Funds that represent emerging markets. The Company considers the evidence to support the recovery of the cost basis of a security including volatility of the stock, the length of time the security has been in a loss position, value and growth expectations, and overall market and sector fundamentals, as well as technical analysis, in determining whether unrealized losses represent an other-than-temporary impairment. In the nine-month period ended September 30, 2013, other-than-temporary impairment write-downs on investments still held by the Company were $2 million ($5 million in the nine-month period ended September 30, 2012). | ||||||||||||||||||||||||||||||||
The aggregate cost of the Company’s cost method investments totaled $184 million at September 30, 2013 ($176 million at December 31, 2012). Due to the nature of these investments, the fair market value is not readily determinable. These investments are reviewed quarterly for impairment indicators. The Company's impairment analysis resulted in a $4 million reduction in the cost basis of these investments for the nine-month period ended September 30, 2013 ($3 million reduction in the nine-month period ended September 30, 2012). | ||||||||||||||||||||||||||||||||
The following table summarizes the fair value of financial instruments at September 30, 2013 and December 31, 2012: | ||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||||||||||||
At September 30, 2013 | At December 31, 2012 | |||||||||||||||||||||||||||||||
In millions | Cost | Gain | Loss | Fair | Cost | Gain | Loss | Fair | ||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||
Marketable securities: (1) | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
Government debt (2) | $ | 532 | $ | 34 | $ | (5 | ) | $ | 561 | $ | 506 | $ | 59 | $ | — | $ | 565 | |||||||||||||||
Corporate bonds | 665 | 47 | (6 | ) | 706 | 676 | 81 | (1 | ) | 756 | ||||||||||||||||||||||
Total debt securities | $ | 1,197 | $ | 81 | $ | (11 | ) | $ | 1,267 | $ | 1,182 | $ | 140 | $ | (1 | ) | $ | 1,321 | ||||||||||||||
Equity securities | 592 | 153 | (8 | ) | 737 | 634 | 109 | (3 | ) | 740 | ||||||||||||||||||||||
Total marketable securities | $ | 1,789 | $ | 234 | $ | (19 | ) | $ | 2,004 | $ | 1,816 | $ | 249 | $ | (4 | ) | $ | 2,061 | ||||||||||||||
Long-term debt incl. debt due within one year (3) | $ | (18,167 | ) | $ | 257 | $ | (2,113 | ) | $ | (20,023 | ) | $ | (20,591 | ) | $ | 24 | $ | (3,195 | ) | $ | (23,762 | ) | ||||||||||
Derivatives relating to: | ||||||||||||||||||||||||||||||||
Interest rates | $ | — | $ | 1 | $ | (4 | ) | $ | (3 | ) | $ | — | $ | 1 | $ | (6 | ) | $ | (5 | ) | ||||||||||||
Commodities (4) | $ | — | $ | 13 | $ | (11 | ) | $ | 2 | $ | — | $ | 26 | $ | (7 | ) | $ | 19 | ||||||||||||||
Foreign currency | $ | — | $ | 67 | $ | (27 | ) | $ | 40 | $ | — | $ | 34 | $ | (20 | ) | $ | 14 | ||||||||||||||
-1 | Included in “Other investments” in the consolidated balance sheets. | |||||||||||||||||||||||||||||||
-2 | U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. | |||||||||||||||||||||||||||||||
-3 | Cost includes fair value adjustments of $22 million at September 30, 2013 and $23 million at December 31, 2012. | |||||||||||||||||||||||||||||||
-4 | Presented net of cash collateral, as disclosed in Note 7. | |||||||||||||||||||||||||||||||
Risk Management | ||||||||||||||||||||||||||||||||
Dow’s business operations give rise to market risk exposure due to changes in interest rates, foreign currency exchange rates, commodity prices and other market factors such as equity prices. To manage such risks effectively, the Company enters into hedging transactions, pursuant to established guidelines and policies, which enable it to mitigate the adverse effects of financial market risk. Derivatives used for this purpose are designated as cash flow, fair value or net foreign investment hedges where appropriate. Accounting guidance requires companies to recognize all derivative instruments as either assets or liabilities at fair value. A secondary objective is to add value by creating additional nonspecific exposures within established limits and policies; derivatives used for this purpose are not designated as hedges. The potential impact of creating such additional exposures is not material to the Company’s results. | ||||||||||||||||||||||||||||||||
The Company’s risk management program for interest rate, foreign currency and commodity risks is based on fundamental, mathematical and technical models that take into account the implicit cost of hedging. Risks created by derivative instruments and the mark-to-market valuations of positions are strictly monitored at all times, using value at risk and stress tests. Counterparty credit risk arising from these contracts is not significant because the Company minimizes counterparty concentration, deals primarily with major financial institutions of solid credit quality, and the majority of its hedging transactions mature in less than three months. In addition, the Company minimizes concentrations of credit risk through its global orientation by transacting with large, internationally diversified financial counterparties. It is the Company’s policy to not have credit-risk-related contingent features in its derivative instruments. No significant concentration of counterparty credit risk existed at September 30, 2013. The Company does not anticipate losses from credit risk, and the net cash requirements arising from counterparty risk associated with risk management activities are not expected to be material in 2013. | ||||||||||||||||||||||||||||||||
The Company revises its strategies as market conditions dictate and management reviews its overall financial strategies and the impacts from using derivatives in its risk management program with the Company’s Board of Directors. | ||||||||||||||||||||||||||||||||
Interest Rate Risk Management | ||||||||||||||||||||||||||||||||
The Company enters into various interest rate contracts with the objective of lowering funding costs or altering interest rate exposures related to fixed and variable rate obligations. In these contracts, the Company agrees with other parties to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated on an agreed-upon notional principal amount. At September 30, 2013, the Company had open interest rate swaps with maturity dates that extend to 2021. | ||||||||||||||||||||||||||||||||
Foreign Currency Risk Management | ||||||||||||||||||||||||||||||||
The Company’s global operations require active participation in foreign exchange markets. The Company enters into foreign exchange forward contracts and options, and cross-currency swaps to hedge various currency exposures or create desired exposures. Exposures primarily relate to assets, liabilities and bonds denominated in foreign currencies, as well as economic exposure, which is derived from the risk that currency fluctuations could affect the dollar value of future cash flows related to operating activities. The primary business objective of the activity is to optimize the U.S. dollar value of the Company’s assets, liabilities and future cash flows with respect to exchange rate fluctuations. Assets and liabilities denominated in the same foreign currency are netted, and only the net exposure is hedged. At September 30, 2013, the Company had forward contracts, options and cross-currency swaps to buy, sell or exchange foreign currencies. These contracts had various expiration dates, primarily in the fourth quarter of 2013. | ||||||||||||||||||||||||||||||||
Commodity Risk Management | ||||||||||||||||||||||||||||||||
The Company has exposure to the prices of commodities in its procurement of certain raw materials. The primary purpose of commodity hedging activities is to manage the price volatility associated with these forecasted inventory purchases. At September 30, 2013, the Company had futures contracts, options and swaps to buy, sell or exchange commodities. These agreements had various expiration dates through the fourth quarter of 2015. | ||||||||||||||||||||||||||||||||
Accounting for Derivative Instruments and Hedging Activities | ||||||||||||||||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||||||||||
For derivatives that are designated and qualify as cash flow hedging instruments, the effective portion of the gain or loss on the derivative is recorded in “Accumulated other comprehensive income (loss)” (“AOCI”); it is reclassified to “Cost of sales” in the same period or periods that the hedged transaction affects income. The unrealized amounts in AOCI fluctuate based on changes in the fair value of open contracts at the end of each reporting period. The Company anticipates volatility in AOCI and net income from its cash flow hedges. The amount of volatility varies with the level of derivative activities and market conditions during any period. Gains and losses on the derivatives representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current period income. | ||||||||||||||||||||||||||||||||
The Company had open interest rate derivatives designated as cash flow hedges at September 30, 2013 with a net loss of $2 million after tax and a notional U.S. dollar equivalent of $528 million (net loss of $3 million after tax and a notional U.S. dollar equivalent of $433 million December 31, 2012). | ||||||||||||||||||||||||||||||||
Current open foreign currency forward contracts hedge the currency risk of forecasted feedstock purchase transactions until March 2014. The effective portion of the mark-to-market effects of the foreign currency forward contracts is recorded in AOCI; it is reclassified to income in the same period or periods that the underlying feedstock purchase affects income. The net loss from the foreign currency hedges included in AOCI at September 30, 2013 was $8 million after tax (net loss of $14 million after tax at December 31, 2012). At September 30, 2013, the Company had open forward contracts with various expiration dates to buy, sell or exchange foreign currencies with a notional U.S. dollar equivalent of $536 million ($366 million at December 31, 2012). | ||||||||||||||||||||||||||||||||
Commodity swaps, futures and option contracts with maturities of not more than 36 months are utilized and designated as cash flow hedges of forecasted commodity purchases. Current open contracts hedge forecasted transactions until December 2014. The effective portion of the mark-to-market effect of the cash flow hedge instrument is recorded in AOCI; it is reclassified to income in the same period or periods that the underlying commodity purchase affects income. The net gain from commodity hedges included in AOCI at September 30, 2013 was $8 million after tax (net gain of $24 million after tax at December 31, 2012). At September 30, 2013 and December 31, 2012, the Company had the following gross aggregate notionals of outstanding commodity forward and futures contracts to hedge forecasted purchases: | ||||||||||||||||||||||||||||||||
Commodity | Sep 30, | Dec 31, | Notional Volume Unit | |||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Corn | 4.9 | 1.9 | million bushels | |||||||||||||||||||||||||||||
Crude Oil | 1.5 | 0.4 | million barrels | |||||||||||||||||||||||||||||
Ethane | 1.8 | 1.8 | million barrels | |||||||||||||||||||||||||||||
Naphtha | 2 | 90 | kilotons | |||||||||||||||||||||||||||||
Natural Gas | 113.2 | 186 | million million British thermal units | |||||||||||||||||||||||||||||
Soybeans | 1.6 | 1.3 | million bushels | |||||||||||||||||||||||||||||
The net after-tax amounts to be reclassified from AOCI to income within the next 12 months are a $3 million loss for interest rate contracts, a $10 million gain for commodity contracts and an $8 million loss for foreign currency contracts. | ||||||||||||||||||||||||||||||||
Fair Value Hedges | ||||||||||||||||||||||||||||||||
For derivative instruments that are designated and qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current period income and reflected as “Interest expense and amortization of debt discount” in the consolidated statements of income. The short-cut method is used when the criteria are met. The Company had no open interest rate swaps designated as fair value hedges of underlying fixed rate debt obligations at September 30, 2013 or December 31, 2012. | ||||||||||||||||||||||||||||||||
Net Foreign Investment Hedges | ||||||||||||||||||||||||||||||||
For derivative instruments that are designated and qualify as net foreign investment hedges, the effective portion of the gain or loss on the derivative is included in “Cumulative Translation Adjustments” in AOCI. At September 30, 2013 and December 31, 2012, the Company had no open forward contracts or outstanding options to buy, sell or exchange foreign currencies designated as net foreign investment hedges. At September 30, 2013, the Company had outstanding foreign-currency denominated debt designated as a hedge of net foreign investment of $204 million ($233 million at December 31, 2012). The result of hedges of the Company’s net investment in foreign operations included in “Cumulative Translation Adjustments” in AOCI was a net gain of $18 million after tax at September 30, 2013 (net gain of $22 million after tax at December 31, 2012). See Note 16 for further detail on changes in AOCI. | ||||||||||||||||||||||||||||||||
Other Derivative Instruments | ||||||||||||||||||||||||||||||||
The Company utilizes futures, options and swap instruments that are effective as economic hedges of commodity price exposures, but do not meet the hedge accounting criteria for derivatives and hedging. At September 30, 2013 and December 31, 2012, the Company had the following gross aggregate notionals of outstanding commodity contracts: | ||||||||||||||||||||||||||||||||
Commodity | Sep 30, | Dec 31, | Notional Volume Unit | |||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Ethane | 0.4 | 1 | million barrels | |||||||||||||||||||||||||||||
Naphtha | 69 | — | kilotons | |||||||||||||||||||||||||||||
Natural Gas | 9.2 | 33 | million million British thermal units | |||||||||||||||||||||||||||||
Propane | 45 | — | kilotons | |||||||||||||||||||||||||||||
The Company also uses foreign exchange forward contracts, options and cross-currency swaps that are not designated as hedging instruments primarily to manage foreign currency exposure. The Company had open foreign exchange contracts with various expiration dates to buy, sell or exchange foreign currencies with a gross notional U.S. dollar equivalent of $15,305 million at September 30, 2013 ($17,637 million at December 31, 2012) and had no open interest rate swaps at September 30, 2013 ($472 million at December 31, 2012). | ||||||||||||||||||||||||||||||||
The following table provides the fair value and gross balance sheet classification of derivative instruments at September 30, 2013 and December 31, 2012: | ||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments | Balance Sheet Classification | Sep 30, | Dec 31, | |||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||||||||||
Interest rates | Other current assets | $ | 1 | $ | 1 | |||||||||||||||||||||||||||
Commodities | Other current assets | 16 | 28 | |||||||||||||||||||||||||||||
Foreign currency | Accounts and notes receivable – Other | 4 | 3 | |||||||||||||||||||||||||||||
Total derivatives designated as hedges | $ | 21 | $ | 32 | ||||||||||||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||||||||||
Commodities | Other current assets | $ | 1 | $ | 3 | |||||||||||||||||||||||||||
Foreign currency | Accounts and notes receivable – Other | 96 | 52 | |||||||||||||||||||||||||||||
Total derivatives not designated as hedges | $ | 97 | $ | 55 | ||||||||||||||||||||||||||||
Total asset derivatives | $ | 118 | $ | 87 | ||||||||||||||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||||||||||
Interest rates | Accounts payable – Other | $ | 4 | $ | 5 | |||||||||||||||||||||||||||
Commodities | Accounts payable – Other | 19 | 21 | |||||||||||||||||||||||||||||
Foreign currency | Accounts payable – Other | 12 | 14 | |||||||||||||||||||||||||||||
Total derivatives designated as hedges | $ | 35 | $ | 40 | ||||||||||||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||||||||||
Interest rates | Accounts payable – Other | $ | — | $ | 1 | |||||||||||||||||||||||||||
Commodities | Accounts payable – Other | 2 | 6 | |||||||||||||||||||||||||||||
Foreign currency | Accounts payable – Other | 48 | 27 | |||||||||||||||||||||||||||||
Total derivatives not designated as hedges | $ | 50 | $ | 34 | ||||||||||||||||||||||||||||
Total liability derivatives | $ | 85 | $ | 74 | ||||||||||||||||||||||||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||
Fair Value Disclosures [Text Block] | FAIR VALUE MEASUREMENTS | |||||||||||||||||||
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 | Quoted Prices | Significant | Significant | Counterparty | Total | |||||||||||||||
on a Recurring Basis | in Active | Other | Unobservable | and Cash | ||||||||||||||||
at September 30, 2013 | Markets for | Observable | Inputs | Collateral | ||||||||||||||||
Identical Items | Inputs | (Level 3) | Netting (1) | |||||||||||||||||
In millions | (Level 1) | (Level 2) | ||||||||||||||||||
Assets at fair value: | ||||||||||||||||||||
Cash equivalents (2) | $ | — | $ | 2,088 | $ | — | $ | — | $ | 2,088 | ||||||||||
Interests in trade accounts receivable conduits (3) | — | — | 1,363 | — | 1,363 | |||||||||||||||
Equity securities (4) | 702 | 35 | — | — | 737 | |||||||||||||||
Debt securities: (4) | ||||||||||||||||||||
Government debt (5) | — | 561 | — | — | 561 | |||||||||||||||
Corporate bonds | — | 706 | — | — | 706 | |||||||||||||||
Derivatives relating to: (6) | ||||||||||||||||||||
Interest rates | — | 1 | — | — | 1 | |||||||||||||||
Commodities | 5 | 12 | — | (4 | ) | 13 | ||||||||||||||
Foreign currency | — | 100 | — | (33 | ) | 67 | ||||||||||||||
Total assets at fair value | $ | 707 | $ | 3,503 | $ | 1,363 | $ | (37 | ) | $ | 5,536 | |||||||||
Liabilities at fair value: | ||||||||||||||||||||
Long-term debt (7) | $ | — | $ | 20,023 | $ | — | $ | — | $ | 20,023 | ||||||||||
Derivatives relating to: (6) | ||||||||||||||||||||
Interest rates | — | 4 | — | — | 4 | |||||||||||||||
Commodities | 9 | 12 | — | (10 | ) | 11 | ||||||||||||||
Foreign currency | — | 60 | — | (33 | ) | 27 | ||||||||||||||
Total liabilities at fair value | $ | 9 | $ | 20,099 | $ | — | $ | (43 | ) | $ | 20,065 | |||||||||
-1 | 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. | |||||||||||||||||||
-2 | Primarily Treasury Bills included in "Cash and cash equivalents" in the consolidated balance sheets and held at amortized cost, which approximates fair value. | |||||||||||||||||||
-3 | Included in “Accounts and notes receivable – Other” in the consolidated balance sheets. See Note 9 for additional information on transfers of financial assets. | |||||||||||||||||||
-4 | The Company’s investments in equity and debt securities are primarily classified as available-for-sale and 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 6 for the classification of derivatives in the consolidated balance sheets. | |||||||||||||||||||
-7 | See Note 6 for information on fair value adjustments to long-term debt, included at cost in the consolidated balance sheets. | |||||||||||||||||||
Basis of Fair Value Measurements | Quoted Prices | Significant | Significant | Counterparty | Total | |||||||||||||||
on a Recurring Basis | in Active | Other | Unobservable | and Cash | ||||||||||||||||
at December 31, 2012 | Markets for | Observable | Inputs | Collateral | ||||||||||||||||
Identical Items | Inputs | (Level 3) | Netting (1) | |||||||||||||||||
In millions | (Level 1) | (Level 2) | ||||||||||||||||||
Assets at fair value: | ||||||||||||||||||||
Cash equivalents (2) | $ | — | $ | 1,953 | $ | — | $ | — | $ | 1,953 | ||||||||||
Interests in trade accounts receivable conduits (3) | — | — | 1,057 | — | 1,057 | |||||||||||||||
Equity securities (4) | 702 | 38 | — | — | 740 | |||||||||||||||
Debt securities: (4) | ||||||||||||||||||||
Government debt (5) | — | 565 | — | — | 565 | |||||||||||||||
Corporate bonds | — | 756 | — | — | 756 | |||||||||||||||
Derivatives relating to: (6) | ||||||||||||||||||||
Interest rates | — | 1 | — | — | 1 | |||||||||||||||
Commodities | 9 | 22 | — | (5 | ) | 26 | ||||||||||||||
Foreign currency | — | 55 | — | (21 | ) | 34 | ||||||||||||||
Total assets at fair value | $ | 711 | $ | 3,390 | $ | 1,057 | $ | (26 | ) | $ | 5,132 | |||||||||
Liabilities at fair value: | ||||||||||||||||||||
Long-term debt (7) | $ | — | $ | 23,762 | $ | — | $ | — | $ | 23,762 | ||||||||||
Derivatives relating to: (6) | ||||||||||||||||||||
Interest rates | — | 6 | — | — | 6 | |||||||||||||||
Commodities | 16 | 11 | — | (20 | ) | 7 | ||||||||||||||
Foreign currency | — | 41 | — | (21 | ) | 20 | ||||||||||||||
Total liabilities at fair value | $ | 16 | $ | 23,820 | $ | — | $ | (41 | ) | $ | 23,795 | |||||||||
-1 | 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. | |||||||||||||||||||
-2 | Primarily Treasury Bills included in "Cash and cash equivalents" in the consolidated balance sheets and held at amortized cost, which approximates fair value. | |||||||||||||||||||
-3 | Included in “Accounts and notes receivable – Other” in the consolidated balance sheets. See Note 9 for additional information on transfers of financial assets. | |||||||||||||||||||
-4 | The Company’s investments in equity and debt securities are primarily classified as available-for-sale and 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 6 for the classification of derivatives in the consolidated balance sheets. | |||||||||||||||||||
-7 | See Note 6 for information on fair value adjustments to long-term debt, included at cost in the consolidated balance sheets. | |||||||||||||||||||
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 $28 million at September 30, 2013 ($20 million at December 31, 2012). | ||||||||||||||||||||
For assets and liabilities classified as Level 1 measurements (measured using quoted prices in active markets), total fair value is either the price of the most recent trade at the time of the market close or the official close price, as defined by the exchange in which the asset is most actively traded on the last trading day of the period, multiplied by the number of units held without consideration of transaction costs. | ||||||||||||||||||||
For assets and liabilities classified as Level 2 measurements, where the security is frequently traded in less active markets, fair value is based on the closing price at the end of the period; where the security is less frequently traded, fair value is based on the price a dealer would pay for the security or similar securities, adjusted for any terms specific to that asset or liability, or by using observable market data points of similar, more liquid securities to imply the price. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance/quality checks. | ||||||||||||||||||||
For derivative assets and liabilities, standard industry models are used to calculate the fair value of the various financial instruments based on significant observable market inputs, such as foreign exchange rates, commodity prices, swap rates, interest rates and implied volatilities obtained from various market sources. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance/quality checks. | ||||||||||||||||||||
For all other assets and liabilities for which observable inputs are used, fair value is derived through the use of fair value models, such as a discounted cash flow model or other standard pricing models. See Note 6 for further information on the types of instruments used by the Company for risk management. | ||||||||||||||||||||
During the nine-month period ended September 30, 2013, the Company transferred from Level 1 to Level 2 certain over-the-counter equity securities valued at $4 million, as these securities trade in less active markets. There were no transfers between Levels 1 and 2 in the year ended December 31, 2012. | ||||||||||||||||||||
For assets classified as Level 3 measurements, the fair value is based on significant unobservable inputs including assumptions where there is little, if any, market activity. The fair value of the Company’s interests held in trade receivable conduits is determined by calculating the expected amount of cash to be received using the key input of anticipated credit losses in the portfolio of receivables sold that have not yet been collected. Given the short-term nature of the underlying receivables, discount rate and prepayments are not factors in determining the fair value of the interests. See Note 9 for further information on assets classified as Level 3 measurements. | ||||||||||||||||||||
The following table summarizes the changes in fair value measurements using Level 3 inputs for the three- and nine-month periods ended September 30, 2013 and 2012: | ||||||||||||||||||||
Fair Value Measurements Using Level 3 Inputs | Three Months Ended | Nine Months Ended | ||||||||||||||||||
Interests Held in Trade Receivable Conduits (1) | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Balance at beginning of period | $ | 1,291 | $ | 1,220 | $ | 1,057 | $ | 1,141 | ||||||||||||
Loss included in earnings (2) | (1 | ) | (2 | ) | (3 | ) | (4 | ) | ||||||||||||
Purchases | 325 | 343 | 997 | 2,396 | ||||||||||||||||
Settlements | (252 | ) | (218 | ) | (688 | ) | (2,190 | ) | ||||||||||||
Balance at September 30 | $ | 1,363 | $ | 1,343 | $ | 1,363 | $ | 1,343 | ||||||||||||
-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. | |||||||||||||||||||
Fair Value Measurements on a Nonrecurring Basis | ||||||||||||||||||||
The following table summarizes the bases used to measure certain assets and liabilities at fair value on a nonrecurring basis in the consolidated balance sheets at September 30, 2012: | ||||||||||||||||||||
Basis of Fair Value Measurements | Significant | Total | ||||||||||||||||||
on a Nonrecurring Basis | Other | Losses | ||||||||||||||||||
at September 30, 2012 | Unobservable | |||||||||||||||||||
Inputs | ||||||||||||||||||||
In millions | (Level 3) | 2012 | ||||||||||||||||||
Assets at fair value: | ||||||||||||||||||||
Long-lived assets and other assets | $ | 10 | $ | (123 | ) | |||||||||||||||
As part of the 1Q12 Restructuring plan that was approved on March 27, 2012, the Company shut down a number of manufacturing facilities during 2012. The manufacturing assets and facilities associated with this plan were written down to zero in the first quarter of 2012 and a $94 million impairment charge was included in "Restructuring charges" in the consolidated statements of income. In addition, a $29 million asset impairment charge was recognized in the Performance Materials segment in the third quarter of 2012. The assets, classified as Level 3 measurements, are valued using unobservable inputs, including assumptions a market participant would use to measure the fair value of the group of assets. See Note 3 for additional information on the Company's restructuring activities. |
COMMITMENTS_AND_CONTINGENT_LIA
COMMITMENTS AND CONTINGENT LIABILITIES | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||
Commitments and Contingencies Disclosure [Text Block] | COMMITMENTS AND CONTINGENT LIABILITIES | |||||||||
Dow Corning Credit Facility | ||||||||||
The Company is a 50 percent shareholder in Dow Corning Corporation ("Dow Corning"). On June 1, 2004, the Company agreed to provide a credit facility to Dow Corning as part of Dow Corning's Joint Plan of Reorganization. The aggregate amount of the facility was originally $300 million; it was reduced to $50 million effective June 1, 2013, of which the Company's share is $25 million. At September 30, 2013, no draws had been taken against the credit facility. | ||||||||||
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 September 30, 2013, the Company had accrued obligations of $748 million for probable environmental remediation and restoration costs, including $76 million for the remediation of Superfund sites. 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 approximately 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 and 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, 2012, the Company had accrued obligations of $754 million for probable environmental remediation and restoration costs, including $69 million for the remediation of Superfund sites. | ||||||||||
Midland Off-Site Environmental Matters | ||||||||||
On June 12, 2003, the Michigan Department of Environmental Quality ("MDEQ") issued a Hazardous Waste Operating License (the "License") to the Company’s Midland, Michigan manufacturing site (the "Midland site"), which included provisions requiring the Company to conduct an investigation to determine the nature and extent of off-site contamination in the City of Midland soils, the Tittabawassee River and Saginaw River sediment and floodplain soils, and the Saginaw Bay, and, if necessary, undertake remedial action. | ||||||||||
City of Midland | ||||||||||
The MDEQ, as a result of ongoing discussions with the Company regarding the implementation of the requirements of the License, announced on February 16, 2012, a proposed plan to resolve the issue of dioxin contamination in residential soils in Midland. As part of the proposed plan, the Company will sample soil at residential properties near the Midland site for the presence of dioxins to determine where clean-up may be required. On March 6, 2012, the Company submitted an Interim Response Activity Plan Designed to Meet Criteria ("Work Plan") to the MDEQ. On May 25, 2012, the Company submitted a revision to the Work Plan to the MDEQ to address agency and public comments. The MDEQ approved the Work Plan on June 1, 2012. Implementation of the Work Plan began on June 4, 2012. The Company submitted amendments to the Work Plan to increase the number of properties to be sampled in 2012. The amendments were approved by the MDEQ on July 23, 2012 and September 13, 2012. On February 15, 2013, the Company submitted a plan for properties to be sampled during 2013 ("2013 Plan"), as required by the approved Work Plan. Approval of the 2013 Plan was granted in May 2013. During the third quarter of 2013, the Company submitted amendments to the 2013 Plan to increase the number of properties to be sampled in 2013. Approval of the amendments to the 2013 Plan was granted on October 14, 2013 and additional sampling of properties is in progress. As of September 30, 2013, 86 of the 98 properties identified through sampling as being above the remediation criteria have been remediated. | ||||||||||
Tittabawassee and Saginaw Rivers, Saginaw Bay | ||||||||||
The Company, the U.S. Environmental Protection Agency ("EPA") and the State of Michigan ("State") entered into an administrative order on consent ("AOC"), effective January 21, 2010, that requires the Company to conduct a remedial investigation, a feasibility study and a remedial design for the Tittabawassee River, the Saginaw River and the Saginaw Bay, and pay the oversight costs of the EPA and the State under the authority of the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"). These actions, to be conducted under the lead oversight of the EPA, will build upon the investigative work completed under the State Resource Conservation Recovery Act ("RCRA") program from 2005 through 2009. The Tittabawassee River, beginning at the Midland site and extending down to the first six miles of the Saginaw River, are designated as the first Operable Unit for purposes of conducting the remedial investigation, feasibility study and remedial design work. This work will be performed in a largely upriver to downriver sequence for eight geographic segments of the Tittabawassee and upper Saginaw Rivers. In the first quarter of 2012, the EPA requested the Company address the Tittabawassee River floodplain as an additional segment. The remainder of the Saginaw River and the Saginaw Bay are designated as a second Operable Unit and the work associated with that unit may also be geographically segmented. The AOC does not obligate the Company to perform removal or remedial action; that action can only be required by a separate order. The Company and the EPA will be negotiating orders separate from the AOC that will obligate the Company to perform remedial actions under the scope of work of the AOC. The Company and the EPA have entered into two separate orders to perform limited remedial actions to implement early actions. In addition, the Company and the EPA have entered into the first order to address remedial actions in the first of the nine geographic segments in the first Operable Unit. The Company and the EPA are engaged in negotiations over an order for the second geographic segment of the first Operable Unit, which will address the river banks and sediments. | ||||||||||
Alternative Dispute Resolution Process | ||||||||||
The Company, the EPA, the U.S. Department of Justice, and the natural resource damage trustees (which include the Michigan Office of the Attorney General, the MDEQ, the U.S. Fish and Wildlife Service, the U.S. Bureau of Indian Affairs and the Saginaw-Chippewa tribe) have been engaged in negotiations to seek to resolve potential governmental claims against the Company related to historical off-site contamination associated with the City of Midland, the Tittabawassee and Saginaw Rivers and the Saginaw Bay. The Company and the governmental parties started meeting in the fall of 2005 and entered into a Confidentiality Agreement in December 2005. The Company continues to conduct negotiations under the Federal Alternative Dispute Resolution Act with all of the governmental parties, except the EPA which withdrew from the alternative dispute resolution process on September 12, 2007. | ||||||||||
On September 28, 2007, the Company and the natural resource damage trustees entered into a Funding and Participation Agreement that addressed the Company’s payment of past costs incurred by the natural resource damage trustees, payment of the costs of a trustee coordinator and a process to review additional cooperative studies that the Company might agree to fund or conduct with the natural resource damage trustees. On March 18, 2008, the Company and the natural resource damage trustees entered into a Memorandum of Understanding to provide a mechanism for the Company to fund cooperative studies related to the assessment of natural resource damages. This Memorandum of Understanding has been amended and extended until March 2014. On April 7, 2008, the natural resource damage trustees released their "Natural Resource Damage Assessment Plan for the Tittabawassee River System Assessment Area." | ||||||||||
At September 30, 2013, the accrual for these off-site matters was $51 million (included in the total accrued obligation of $748 million at September 30, 2013). At December 31, 2012, the Company had an accrual for these off-site matters of $42 million (included in the total accrued obligation of $754 million at December 31, 2012). | ||||||||||
Litigation | ||||||||||
DBCP Matters | ||||||||||
Numerous lawsuits have been brought against the Company and other chemical companies, both inside and outside of the United States, alleging that the manufacture, distribution or use of pesticides containing dibromochloropropane (“DBCP”) has caused personal injury and property damage, including contamination of groundwater. It is the opinion of the Company’s management that the possibility is remote that the resolution of such lawsuits will have a material impact on the Company’s consolidated financial statements. | ||||||||||
Asbestos-Related Matters of Union Carbide Corporation | ||||||||||
Introduction | ||||||||||
Union Carbide Corporation (“Union Carbide”), a wholly owned subsidiary of the Company, is and has been involved in a large number of asbestos-related suits filed primarily in state courts during the past three 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 Liability | ||||||||||
Based on a study completed by Analysis, Research & Planning Corporation (“ARPC”) in January 2003, Union Carbide increased its December 31, 2002 asbestos-related liability for pending and future claims for the 15-year period ending in 2017 to $2.2 billion, excluding future defense and processing costs. Since then, Union Carbide has compared current asbestos claim and resolution activity to the results of the most recent ARPC study at each balance sheet date to determine whether the accrual continues to be appropriate. In addition, Union Carbide has requested ARPC to review Union Carbide’s historical asbestos claim and resolution activity each year since 2004 to determine the appropriateness of updating the most recent ARPC study. | ||||||||||
In November 2011, Union Carbide requested ARPC to review Union Carbide's 2011 asbestos claim and resolution activity and determine the appropriateness of updating its then most recent study completed in December 2010. In response to that request, ARPC reviewed and analyzed data through October 31, 2011. In January 2012, ARPC stated that an update of its study would not provide a more likely estimate of future events than the estimate reflected in its December 2010 study and, therefore, the estimate in that study remained applicable. Based on Union Carbide's own review of the asbestos claim and resolution activity and ARPC's response, Union Carbide determined that no change to the accrual was required. At December 31, 2011, the asbestos-related liability for pending and future claims was $668 million. | ||||||||||
In October 2012, Union Carbide requested ARPC to review its historical asbestos claim and resolution activity and determine the appropriateness of updating its December 2010 study. In response to that request, ARPC reviewed and analyzed data through September 30, 2012. In December 2012, based upon ARPC's December 2012 study and Union Carbide's own review of the asbestos claim and resolution activity for 2012, it was determined that no adjustment to the accrual was required at December 31, 2012. Union Carbide's asbestos-related liability for pending and future claims was $602 million at December 31, 2012. At December 31, 2012, approximately 18 percent of the recorded liability related to pending claims and approximately 82 percent related to future claims. | ||||||||||
Based on Union Carbide’s review of 2013 activity, Union Carbide determined that no adjustment to the accrual was required at September 30, 2013. Union Carbide’s asbestos-related liability for pending and future claims was $555 million at September 30, 2013. Approximately 19 percent of the recorded liability related to pending claims and approximately 81 percent related to future claims. | ||||||||||
Insurance Receivables | ||||||||||
At December 31, 2002, Union Carbide increased the receivable for insurance recoveries related to its asbestos liability to $1.35 billion, substantially exhausting its asbestos product liability coverage. The insurance receivable related to the asbestos liability was determined by Union Carbide after a thorough review of applicable insurance policies and the 1985 Wellington Agreement, to which Union Carbide and many of its liability insurers are signatory parties, as well as other insurance settlements, with due consideration given to applicable deductibles, retentions and policy limits, and taking into account the solvency and historical payment experience of various insurance carriers. The Wellington Agreement and other agreements with insurers are designed to facilitate an orderly resolution and collection of Union Carbide’s insurance policies and to resolve issues that the insurance carriers may raise. | ||||||||||
In September 2003, Union Carbide filed a comprehensive insurance coverage case, now proceeding in the Supreme Court of the State of New York, County of New York, seeking to confirm its rights to insurance for various asbestos claims and to facilitate an orderly and timely collection of insurance proceeds (the “Insurance Litigation”). The Insurance Litigation was filed against insurers that are not signatories to the Wellington Agreement and/or do not otherwise have agreements in place with Union Carbide regarding their asbestos-related insurance coverage, in order to facilitate an orderly resolution and collection of such insurance policies and to resolve issues that the insurance carriers may raise. Since the filing of the case, Union Carbide has reached settlements with most of the carriers involved in the Insurance Litigation and continues to pursue settlements with outstanding carriers. | ||||||||||
Union Carbide’s receivable for insurance recoveries related to its asbestos liability was $25 million at September 30, 2013 and $25 million at December 31, 2012. At September 30, 2013 and December 31, 2012, all of the receivable for insurance recoveries was related to insurers that are not signatories to the Wellington Agreement and/or do not otherwise have agreements in place regarding their asbestos-related insurance coverage. | ||||||||||
In addition to the receivable for insurance recoveries related to its asbestos liability, Union Carbide had receivables for defense and resolution costs submitted to insurance carriers that have settlement agreements in place regarding their asbestos-related insurance coverage. The following table summarizes Union Carbide’s receivables related to its asbestos-related liability: | ||||||||||
Receivables for Asbestos-Related Costs | Sep 30, | Dec 31, | ||||||||
In millions | 2013 | 2012 | ||||||||
Receivables for defense costs – carriers with settlement agreements | $ | 16 | $ | 17 | ||||||
Receivables for resolution costs – carriers with settlement agreements | 124 | 137 | ||||||||
Receivables for insurance recoveries – carriers without settlement agreements | 25 | 25 | ||||||||
Total | $ | 165 | $ | 179 | ||||||
Union Carbide expenses defense costs as incurred. The pretax impact for defense and resolution costs, net of insurance, was $26 million in the third quarter of 2013 ($25 million in the third quarter of 2012) and $77 million in the first nine months of 2013 ($73 million in the first nine months of 2012) and was included in "Cost of sales" in the consolidated statements of income. | ||||||||||
After a review of its insurance policies, with due consideration given to applicable deductibles, retentions and policy limits, after taking into account the solvency and historical payment experience of various insurance carriers; existing insurance settlements; and the advice of outside counsel with respect to the applicable insurance coverage law relating to the terms and conditions of its insurance policies, Union Carbide continues to believe that its recorded receivable for insurance recoveries from all insurance carriers is probable of collection. | ||||||||||
Summary | ||||||||||
The amounts recorded by Union Carbide for the asbestos-related liability and related insurance receivable described above were based upon current, known facts. However, future events, such as the number of new claims to be filed and/or received each year, the average cost of disposing of each such claim, coverage issues among insurers, and the continuing solvency of various insurance companies, as well as the numerous uncertainties surrounding asbestos litigation in the United States, could cause the actual costs and insurance recoveries for Union Carbide to be higher or lower than those projected or those recorded. | ||||||||||
Because of the uncertainties described above, Union Carbide’s management cannot estimate the full range of the cost of resolving pending and future asbestos-related claims facing Union Carbide and Amchem. Union Carbide’s management believes that it is reasonably possible that the cost of disposing of Union Carbide’s asbestos-related claims, including future defense costs, could have a material impact on Union Carbide’s results of operations and cash flows for a particular period and on the consolidated financial position of Union Carbide. | ||||||||||
It is the opinion of Dow’s management that it is reasonably possible that the cost of Union Carbide disposing of its asbestos-related claims, including future defense 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 of the Company. | ||||||||||
Synthetic Rubber Industry Matters | ||||||||||
In 2003, the U.S., Canadian and European competition authorities initiated separate investigations into alleged anticompetitive behavior by certain participants in the synthetic rubber industry. Certain subsidiaries of the Company (but as to the investigation in Europe only) responded to requests for documents and otherwise cooperated in the investigations. | ||||||||||
On June 10, 2005, the Company received a Statement of Objections from the European Commission (the “EC”) stating that it believed that the Company and certain subsidiaries of the Company (the “Dow Entities”), together with other participants in the synthetic rubber industry, engaged in conduct in violation of European competition laws with respect to the butadiene rubber and emulsion styrene butadiene rubber businesses. In connection therewith, on November 29, 2006, the EC issued its decision alleging infringement of Article 81 of the Treaty of Rome and imposed a fine of Euro 64.575 million (approximately $85 million at that time) on the Dow Entities; several other companies were also named and fined. As a result, the Company recognized a loss contingency of $85 million related to the fine in the fourth quarter of 2006. The Company appealed the EC’s decision and a hearing was held before the Court of First Instance on October 13, 2009. On July 13, 2011, the General Court issued a decision that partly affirmed the EC's decision with regard to the amount of the fine and the liability of the parent company, but rejected the EC's decision regarding the length of the conspiracy and determined that it was of a shorter duration. The Dow Entities filed an appeal of this decision to the Court of Justice of the European Union. This appeal was denied on July 18, 2013. The Dow Entities paid the fine, including accrued interest, on August 12, 2013. This proceeding is now considered resolved. Subsequent to the imposition of the fine in 2006, the Company and/or certain subsidiaries of the Company became named parties in various related U.S., United Kingdom and Italian civil actions. The U.S. matter was settled in March 2010 through a confidential settlement agreement, with an immaterial impact on the Company’s consolidated financial statements. The United Kingdom and Italian civil actions are still pending. | ||||||||||
Additionally, on March 10, 2007, the Company received a Statement of Objections from the EC stating that it believed that DuPont Dow Elastomers L.L.C. (“DDE”), a former 50:50 joint venture with E.I. du Pont de Nemours and Company (“DuPont”), together with other participants in the synthetic rubber industry, engaged in conduct in violation of European competition laws with respect to the polychloroprene business. This Statement of Objections specifically names the Company, in its capacity as a former joint venture owner of DDE. On December 5, 2007, the EC announced its decision to impose a fine on the Company, among others, in the amount of Euro 48.675 million (approximately $66 million). The Company previously transferred its joint venture ownership interest in DDE to DuPont in 2005, and DDE then changed its name to DuPont Performance Elastomers L.L.C. (“DPE”). In February 2008, DuPont, DPE and the Company each filed an appeal of the December 5, 2007 decision of the EC. On February 2, 2012, the European General Court denied the appeals of the December 5, 2007 decision. The Company appealed this decision to the Court of Justice of the European Union. This appeal was denied on September 26, 2013. Based on the Company’s 2004 Allocation Agreement with DuPont, the Company’s share of this fine (which DuPont previously caused to be paid) did not have a material impact on the Company’s consolidated financial statements and there was no financial impact to Dow as a result of this final ruling. This matter is now considered resolved. | ||||||||||
Urethane Matters | ||||||||||
On February 16, 2006, the Company, among others, received a subpoena from the U.S. Department of Justice ("DOJ") as part of a previously announced antitrust investigation of manufacturers of polyurethane chemicals, including methylene diphenyl diisocyanate, toluene diisocyanate, polyether polyols and system house products. The Company cooperated with the DOJ and, following an extensive investigation, on December 10, 2007, the Company received notice from the DOJ that it had closed its investigation of potential antitrust violations involving these products without indictments or pleas. | ||||||||||
In 2005, the Company, among others, was named as a defendant in multiple civil class action lawsuits alleging a conspiracy to fix the price of various urethane chemical products, namely the products that were the subject of the above described DOJ antitrust investigation. These lawsuits were consolidated in the U.S. District Court for the District of Kansas (the “District Court”) or have been tolled. On July 29, 2008, the District Court certified a class of purchasers of the products for the six-year period from 1999 through 2004. Shortly thereafter, a series of “opt-out” cases were filed by a number of large volume purchasers; these cases are substantively identical to the class action lawsuit, but expanded the time period to include 1994 through 1998. In January 2013, the class action lawsuit went to trial in the District Court with the Company as the sole remaining defendant, the other defendants having previously settled. On February 20, 2013, the jury in the matter returned a damages verdict of approximately $400 million against the Company, which would be trebled under applicable antitrust laws - less offsets from other settling defendants - if the verdict is not vacated or otherwise set aside by the District Court. The Company filed post-trial motions on March 5, 2013, requesting the District Court grant judgment in favor of the Company, grant the Company a new trial and/or decertify the class. | ||||||||||
On May 15, 2013, the District Court denied the Company's request to overturn the verdict and, under antitrust laws, tripled the damages verdict resulting in a $1.2 billion judgment. On July 26, 2013, the District Court entered an amended judgment in the amount of $1.06 billion. The Company is appealing this amended judgment. | ||||||||||
In addition to the matters described above, there are two separate but inter-related matters in Ontario and Quebec, Canada, both of which are pending a decision on class certification. | ||||||||||
The Company has concluded it is not probable that a loss will occur and, therefore, a liability has not been recorded with respect to these matters. | ||||||||||
Other Litigation Matters | ||||||||||
In addition to the specific matters described above, the Company is party to a number of other claims and lawsuits arising out of the normal course of business with respect to commercial matters, including product liability, governmental regulation 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 has an active risk management program consisting of numerous insurance policies secured from many carriers at various times. These policies often provide coverage that will be utilized to minimize the financial impact, if any, of the contingencies described above. | ||||||||||
Summary | ||||||||||
Except for the possible effect of Union Carbide’s Asbestos-Related Matters and the Urethane Matters described above, it is the opinion of the Company’s management that the possibility is remote that the aggregate of all claims and lawsuits will have a material adverse impact on the results of operations, financial condition and cash flows of the Company. | ||||||||||
Purchase Commitments | ||||||||||
The Company has numerous agreements for the purchase of ethylene-related products globally. The purchase prices are determined primarily on a cost-plus basis. Total purchases under these agreements were $304 million in 2012, $552 million in 2011 and $714 million in 2010. The Company’s take-or-pay commitments associated with these agreements at December 31, 2012 are included in the table below. There have been no material changes to purchase commitments since December 31, 2012. | ||||||||||
The Company also has various commitments for take-or-pay and throughput agreements. These commitments are at prices not in excess of current market prices. The remaining terms for all but one of these agreements extend from one to 32 years. One agreement has a remaining term of 64 years. The determinable future commitments for this specific agreement for a period of 10 years are included in the following table along with the fixed and determinable portion of all other obligations under the Company’s purchase commitments at December 31, 2012: | ||||||||||
Fixed and Determinable Portion of Take-or-Pay and | ||||||||||
Throughput Obligations at December 31, 2012 | ||||||||||
In millions | ||||||||||
2013 | $ | 2,570 | ||||||||
2014 | 2,607 | |||||||||
2015 | 2,141 | |||||||||
2016 | 1,904 | |||||||||
2017 | 1,712 | |||||||||
2018 and beyond | 8,106 | |||||||||
Total | $ | 19,040 | ||||||||
In addition to the take-or-pay obligations at December 31, 2012, the Company had outstanding commitments which ranged from one to six years for materials, services and other items used in the normal course of business of approximately $201 million. Such commitments were at prices not in excess of current market prices. | ||||||||||
Guarantees | ||||||||||
The Company provides a variety of guarantees as described more fully in the following sections. | ||||||||||
Guarantees | ||||||||||
Guarantees arise during the ordinary course of business from relationships with customers and nonconsolidated affiliates when the Company undertakes an obligation to guarantee the performance of others (via delivery of cash or other assets) if specified triggering events occur. With guarantees, such as commercial or financial contracts, non-performance by the guaranteed party triggers the obligation of the Company to make payments to the beneficiary of the guarantee. The majority of the Company’s guarantees relate to debt of nonconsolidated affiliates, which have expiration dates ranging from less than one year to eight years, and trade financing transactions in Latin America, which typically expire within one year of inception. The Company’s current expectation is that future payment or performance related to the non-performance of others is considered unlikely. | ||||||||||
Residual Value Guarantees | ||||||||||
The Company provides guarantees related to leased assets specifying the residual value that will be available to the lessor at lease termination through sale of the assets to the lessee or third parties. | ||||||||||
The following tables provide a summary of the final expiration, maximum future payments and recorded liability reflected in the consolidated balance sheets for each type of guarantee: | ||||||||||
Guarantees at September 30, 2013 | Final | Maximum Future | Recorded | |||||||
In millions | Expiration | Payments | Liability | |||||||
Guarantees | 2021 | $ | 4,845 | $ | 96 | |||||
Residual value guarantees | 2021 | 685 | 28 | |||||||
Total guarantees | $ | 5,530 | $ | 124 | ||||||
Guarantees at December 31, 2012 | Final | Maximum Future | Recorded | |||||||
In millions | Expiration | Payments (1) | Liability | |||||||
Guarantees | 2021 | $ | 1,544 | $ | 48 | |||||
Residual value guarantees (2) | 2021 | 637 | 31 | |||||||
Total guarantees | $ | 2,181 | $ | 79 | ||||||
-1 | The Company was indemnified by a third party for $49 million if required to perform under a $98 million guarantee. | |||||||||
-2 | Does not include the residual value guarantee related to the Company's variable interest in an owner trust; see Note 11. | |||||||||
During the first six months of 2013, the Company entered into guarantee agreements (“Guarantees”) related to project financing for Sadara Chemical Company (“Sadara”), a nonconsolidated affiliate. On April 2, 2013, Sadara issued an Islamic bond (“Sukuk”) in the amount of SAR 7.5 billion (approximately $2 billion). On June 16, 2013, Sadara entered into definitive agreements with certain export credit agencies, commercial banks and the Public Investment Fund of the Kingdom of Saudi Arabia for approximately $10.5 billion of project financing (“Additional Project Financing”). The Additional Project Financing closed on June 28, 2013. The total of the Sukuk and Additional Project Financing (collectively "Total Project Financing") obtained by Sadara is approximately $12.5 billion. At September 30, 2013, Sadara had $4.7 billion of Total Project Financing outstanding. The Company's guarantee of the Sukuk and the Additional Project Financing is in proportion to the Company's 35 percent ownership interest in Sadara, or up to approximately $4.4 billion when the project financing is fully drawn. The Guarantees will be released upon completion of construction of the Sadara complex and satisfactory fulfillment of certain other conditions, including passage of an extensive operational testing program, which is currently anticipated for the end of 2017. | ||||||||||
Asset Retirement Obligations | ||||||||||
The Company has recognized asset retirement obligations for the following activities: demolition and remediation activities at manufacturing sites in the United States, Canada, Brazil, China, Argentina and Europe; and capping activities at landfill sites in the United States, Canada, Brazil and Europe. The Company has also recognized conditional asset retirement obligations related to asbestos encapsulation as a result of planned demolition and remediation activities at manufacturing and administrative sites in the United States, Canada, Brazil, China, Argentina and Europe. | ||||||||||
The aggregate carrying amount of asset retirement obligations recognized by the Company was $86 million at September 30, 2013 and $92 million at December 31, 2012. The discount rate used to calculate the Company’s asset retirement obligations was 0.87 percent at September 30, 2013 and 0.87 percent at December 31, 2012. These obligations are included in the consolidated balance sheets as "Accrued and other current liabilities" and "Other noncurrent obligations." | ||||||||||
The Company has not recognized conditional asset retirement obligations for which a fair value cannot be reasonably estimated in its consolidated financial statements. It is the opinion of the Company’s management that the possibility is remote that such conditional asset retirement obligations, when estimable, will have a material impact on the Company’s consolidated financial statements based on current costs. | ||||||||||
K-Dow Arbitration | ||||||||||
In February 2009, the Company initiated arbitration proceedings against Petrochemical Industries Company (K.S.C.) ("PIC") alleging that PIC breached the Joint Venture Formation Agreement related to the establishment of K-Dow, a proposed 50:50 global petrochemicals joint venture with PIC, by failing to close the transaction. In May 2012, the International Court of Arbitration of the International Chamber of Commerce ("ICC") awarded the Company $2.161 billion in damages ("Partial Award"), not including pre- and post-award interest and arbitration costs. On March 4, 2013, the ICC released the Final Award in the arbitration case covering the Company's claim for pre- and post-award interest and arbitration costs and awarded the Company $318 million, as of February 28, 2013. On May 6, 2013, the Company and PIC entered into a Deed providing for payment of the Company's claims against PIC under the K-Dow arbitration. On May 7, 2013, the Company confirmed the receipt of a $2.195 billion cash payment from PIC, which included the Partial Award of $2.161 billion as well as recovery of Dow's costs incurred in the arbitration, including legal fees. In addition, Kuwait Petroleum Corporation provided assurances that no retaliatory or punitive actions would be taken against the Company and its affiliates as a result of the Deed and payment. In the second quarter of 2013, the Company recorded a pretax gain of $2.195 billion, of which $2.161 billion is included in "Sundry income (expense) - net" and $34 million is included in "Cost of sales" in the consolidated statements of income and reflected in Corporate. The K-Dow arbitration is considered final and settled in full. | ||||||||||
TRANSFERS_OF_FINANCIAL_ASSETS
TRANSFERS OF FINANCIAL ASSETS | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Transfers and Servicing [Abstract] | ||||||||||||||||
TRANSFERS OF FINANCIAL ASSETS | TRANSFERS OF FINANCIAL ASSETS | |||||||||||||||
Sale of Trade Accounts Receivable in North America and Europe | ||||||||||||||||
The Company sells trade accounts receivable of select North America entities and qualifying trade accounts receivable of select European entities on a revolving basis to certain multi-seller commercial paper conduit entities ("conduits"). The Company maintains servicing responsibilities and the related costs are insignificant. The proceeds received are comprised of cash and interests in specified assets of the conduits (the receivables sold by the Company) that entitle the Company 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 the Company in the event of nonpayment by the debtors. | ||||||||||||||||
During the three months ended September 30, 2013, the Company recognized a loss of $4 million on the sale of these receivables ($5 million during the three months ended September 30, 2012), which is included in “Interest expense and amortization of debt discount” in the consolidated statements of income. During the nine months ended September 30, 2013, the Company recognized a loss of $13 million on the sale of receivables ($14 million during the nine months ended September 30, 2012). | ||||||||||||||||
The Company's interests in the conduits are carried at fair value and included in “Accounts and notes receivable – Other” in the consolidated balance sheets. Fair value of the interests is determined by calculating the expected amount of cash to be received and is based on unobservable inputs (a Level 3 measurement). The key input in the valuation is the percentage of anticipated credit losses in the portfolio of receivables sold that have not yet been collected. Given the short-term nature of the underlying receivables, discount rates and prepayments are not factors in determining the fair value of the interests. | ||||||||||||||||
The following table summarizes the carrying value of interests held, which represents the Company'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 | Sep 30, | Dec 31, | ||||||||||||||
In millions | 2013 | 2012 | ||||||||||||||
Carrying value of interests held | $ | 1,363 | $ | 1,057 | ||||||||||||
Percentage of anticipated credit losses | 0.76 | % | 0.73 | % | ||||||||||||
Impact to carrying value - 10% adverse change | $ | 1 | $ | 1 | ||||||||||||
Impact to carrying value - 20% adverse change | $ | 3 | $ | 2 | ||||||||||||
Credit losses, net of any recoveries, on receivables sold during the three- and nine-month periods ended September 30, 2013 and 2012 were insignificant. | ||||||||||||||||
Following is an analysis of certain cash flows between the Company and the conduits: | ||||||||||||||||
Cash Proceeds | Three Months Ended | Nine Months Ended | ||||||||||||||
In millions | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Sale of receivables | $ | — | $ | — | $ | 19 | $ | 57 | ||||||||
Collections reinvested in revolving receivables | $ | 6,489 | $ | 6,432 | $ | 19,229 | $ | 19,489 | ||||||||
Interests in conduits (1) | $ | 252 | $ | 218 | $ | 688 | $ | 2,190 | ||||||||
-1 | Presented in "Operating Activities" in the consolidated statements of cash flows. | |||||||||||||||
Following is additional information related to the sale of receivables under these facilities: | ||||||||||||||||
Trade Accounts Receivable Sold | Sep 30, | Dec 31, | ||||||||||||||
In millions | 2013 | 2012 | ||||||||||||||
Delinquencies on sold receivables still outstanding | $ | 129 | $ | 164 | ||||||||||||
Trade accounts receivable outstanding and derecognized | $ | 2,654 | $ | 2,294 | ||||||||||||
In January 2013, the Company repurchased $8 million of previously sold receivables related to a divestiture. | ||||||||||||||||
Sale of Trade Accounts Receivable in Asia Pacific | ||||||||||||||||
The Company sells participating interests in trade accounts receivable of select Asia Pacific entities. The Company maintains servicing responsibilities and the related costs are insignificant. The third-party holders of the participating interests do not have recourse to the Company’s assets in the event of nonpayment by the debtors. | ||||||||||||||||
During the three- and nine-month periods ended September 30, 2013 and 2012, the Company recognized insignificant losses on the sale of the participating interests in the receivables, which is included in “Interest expense and amortization of debt discount” in the consolidated statements of income. The Company receives cash upon the sale of the participating interests in the receivables. | ||||||||||||||||
Following is an analysis of certain cash flows between the Company and the third-party holders of the participating interests: | ||||||||||||||||
Cash Proceeds | Three Months Ended | Nine Months Ended | ||||||||||||||
In millions | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Sale of participating interests | $ | 13 | $ | 16 | $ | 39 | $ | 48 | ||||||||
Collections reinvested in revolving receivables | $ | 13 | $ | 13 | $ | 35 | $ | 42 | ||||||||
Following is additional information related to the sale of participating interests in the receivables under this facility: | ||||||||||||||||
Trade Accounts Receivable | Sep 30, | Dec 31, | ||||||||||||||
In millions | 2013 | 2012 | ||||||||||||||
Derecognized from the consolidated balance sheets | $ | 9 | $ | 13 | ||||||||||||
Outstanding in the consolidated balance sheets | 182 | 283 | ||||||||||||||
Total accounts receivable in select Asia Pacific entities | $ | 191 | $ | 296 | ||||||||||||
There were no credit losses on receivables relating to the participating interests sold during the three- and nine-month periods ended September 30, 2013 and 2012. There were no delinquencies on the outstanding receivables related to the participating interests sold at September 30, 2013 or December 31, 2012. |
NOTES_PAYABLE_LONGTERM_DEBT_AN
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES | NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES | ||||||||||||||
Notes Payable | Sep 30, | Dec 31, | |||||||||||||
In millions | 2013 | 2012 | |||||||||||||
Notes payable to banks | $ | 353 | $ | 319 | |||||||||||
Notes payable to related companies | 90 | 66 | |||||||||||||
Notes payable trade | 9 | 11 | |||||||||||||
Total notes payable | $ | 452 | $ | 396 | |||||||||||
Period-end average interest rates | 2.82 | % | 3.14 | % | |||||||||||
Long-Term Debt | 2013 | Sep 30, | 2012 | Dec 31, | |||||||||||
Average | 2013 | Average | 2012 | ||||||||||||
In millions | Rate | Rate | |||||||||||||
Promissory notes and debentures: | |||||||||||||||
Final maturity 2013 | 9.8 | % | $ | 3 | 6.01 | % | $ | 404 | |||||||
Final maturity 2014 | 5.36 | % | 397 | 6.86 | % | 1,138 | |||||||||
Final maturity 2015 | 2.95 | % | 53 | 5.82 | % | 1,290 | |||||||||
Final maturity 2016 | 2.53 | % | 803 | 2.54 | % | 789 | |||||||||
Final maturity 2017 | 5.82 | % | 902 | 5.88 | % | 890 | |||||||||
Final maturity 2018 | 5.53 | % | 853 | 5.59 | % | 840 | |||||||||
Final maturity 2019 and thereafter | 5.95 | % | 12,177 | 5.96 | % | 12,148 | |||||||||
Other facilities: | |||||||||||||||
U.S. dollar loans, various rates and maturities | 1.52 | % | 579 | 2.3 | % | 288 | |||||||||
Foreign currency loans, various rates and maturities | 3.4 | % | 1,233 | 3.5 | % | 1,336 | |||||||||
Medium-term notes, varying maturities through 2023 | 3.81 | % | 984 | 4.26 | % | 1,132 | |||||||||
Pollution control/industrial revenue bonds, varying maturities through 2038 | 5.59 | % | 518 | 5.67 | % | 718 | |||||||||
Capital lease obligations | — | 45 | — | 21 | |||||||||||
Unamortized debt discount | — | (380 | ) | — | (403 | ) | |||||||||
Long-term debt due within one year | — | (680 | ) | — | (672 | ) | |||||||||
Long-term debt | — | $ | 17,487 | — | $ | 19,919 | |||||||||
Annual Installments on Long-Term Debt | |||||||||||||||
For Next Five Years at September 30, 2013 | |||||||||||||||
In millions | |||||||||||||||
2013 | $ | 69 | |||||||||||||
2014 | $ | 697 | |||||||||||||
2015 | $ | 466 | |||||||||||||
2016 | $ | 1,367 | |||||||||||||
2017 | $ | 1,192 | |||||||||||||
2018 | $ | 1,169 | |||||||||||||
During the third quarter of 2013, the Company redeemed $209 million aggregate principal amount of InterNotes of various interest rates and maturities in 2017, 2018, 2020, 2021 and 2022. As a result of this redemption, the Company realized a $3 million pretax loss on the early extinguishment of debt, included in "Sundry income (expense) - net" in the consolidated statements of income and reflected in Corporate. | |||||||||||||||
On June 24, 2013, the Company redeemed $1.25 billion aggregate principal amount of 5.9 percent notes due February 15, 2015, at a price of 108.4 percent of the principal amount of the notes, plus accrued and unpaid interest. As a result of this redemption, the Company realized a $108 million pretax loss on the early extinguishment of debt, included in "Sundry income (expense) - net" in the consolidated statements of income and reflected in Corporate. | |||||||||||||||
On June 15, 2013, the Company redeemed $142 million aggregate principal amount of InterNotes of various interest rates and varying maturities in 2017, 2018, 2020, 2021 and 2022. As a result of this redemption, the Company realized a $2 million pretax loss on the early extinguishment of debt, included in "Sundry income (expense) - net" in the consolidated statements of income and reflected in Corporate. | |||||||||||||||
On March 25, 2013, the Company redeemed $750 million aggregate principal amount of 7.6 percent notes due May 15, 2014, at a price of 107.8 percent of the principal amount of the notes, plus accrued and unpaid interest. As a result of this redemption, the Company realized a $60 million pretax loss on the early extinguishment of debt, included in "Sundry income (expense) - net" in the consolidated statements of income and reflected in Corporate. | |||||||||||||||
During the first nine months of 2013, the Company redeemed $250 million of 5.6 percent notes that matured on March 15, 2013, redeemed $138 million of 6.85 percent notes that matured on August 15, 2013, and redeemed $82 million principal amount of InterNotes at maturity. In the second quarter of 2013, the Company repurchased $200 million of pollution control/industrial revenue tax-exempt bonds of which $126 million is available for re-marketing. | |||||||||||||||
During the first nine months of 2013, the Company issued $286 million aggregate principal amount of InterNotes and approximately $86 million of long-term debt (net of $66 million of repayments) was entered into by consolidated variable interest entities. The Company also drew $300 million on a Committed Term Loan Facility on April 5, 2013. | |||||||||||||||
On March 8, 2012, the Company redeemed $1.25 billion aggregate principal amount of 4.85 percent notes due August 15, 2012, at a price of 101.8 percent of the principal amount of the notes, plus accrued and unpaid interest. As a result of this redemption, the Company realized a $24 million pretax loss on the early extinguishment of debt, included in "Sundry income (expense) - net" in the consolidated statements of income and reflected in Corporate. | |||||||||||||||
During the first nine months of 2012, the Company issued $210 million aggregate principal amount of certain notes and InterNotes and $307 million of long-term debt was entered into by consolidated variable interest entities. The Company also redeemed $37 million of pollution control/industrial revenue bonds that matured on January 1, 2012, repurchased $105 million of pollution control/industrial revenue tax-exempt bonds that are available for re-marketing and redeemed Euro 253 million ($317 million equivalent at June 30, 2012) of notes that matured on September 19, 2012. | |||||||||||||||
Available Credit Facilities | |||||||||||||||
The following table summarizes the Company's credit facilities: | |||||||||||||||
Committed and Available Credit Facilities at September 30, 2013 | |||||||||||||||
In millions | Effective Date | Committed Credit | Credit Available | Maturity Date | Interest | ||||||||||
Five Year Competitive Advance and Revolving Credit Facility | Oct-11 | $ | 5,000 | $ | 5,000 | Oct-16 | Floating rate | ||||||||
Bilateral Revolving Credit Facility | Oct-12 | 170 | 170 | Oct-16 | Floating rate | ||||||||||
Bilateral Revolving Credit Facility | Mar-13 | 100 | 100 | Mar-14 | Floating rate | ||||||||||
Bilateral Revolving Credit Facility | Mar-13 | 300 | 300 | Oct-16 | Floating rate | ||||||||||
Term Loan Facility | Mar-13 | 300 | — | Mar-16 | Floating rate | ||||||||||
Bilateral Revolving Credit Facility | Apr-13 | 200 | 200 | Apr-16 | Floating rate | ||||||||||
Total Committed and Available Credit Facilities | $ | 6,070 | $ | 5,770 | |||||||||||
On October 14, 2013, the Company entered into an additional $200 million Bilateral Revolving Credit Facility Agreement and, on October 16, 2013, the Company entered into an additional $100 million Bilateral Revolving Credit Facility Agreement (collectively, the "Credit Facilities"). The Credit Facilities have a maturity date of October 2016 and provide for interest at floating rates, as defined in the agreements. | |||||||||||||||
The Company's outstanding long-term debt has been issued under indentures which contain, among other provisions, certain customary restrictive covenants with which the Company must comply while the underlying notes are outstanding. Such covenants include obligations to not allow liens on principal U.S. manufacturing facilities, enter into sale and lease-back transactions with respect to principal U.S. manufacturing facilities, or merge or consolidate with any other corporation, or sell or convey all or substantially all of the Company's assets. The outstanding debt also contains customary default provisions. Failure of the Company to comply with any of these covenants could result in a default under the applicable indenture, which would allow the note holders to accelerate the due date of the outstanding principal and accrued interest on the underlying notes. | |||||||||||||||
The Company's primary, private credit agreements also contain certain customary restrictive covenant and default provisions in addition to the covenants set forth above with respect to the Company's debt. Significant other restrictive covenants and default provisions related to these agreements include: | |||||||||||||||
(a) | the obligation to maintain the ratio of the Company's consolidated indebtedness to consolidated capitalization at no greater than 0.65 to 1.00 at any time the aggregate outstanding amount of loans under the Five Year Competitive Advance and Revolving Credit Facility Agreement dated October 18, 2011 equals or exceeds $500 million, | ||||||||||||||
(b) | a default if the Company or an applicable subsidiary fails to make any payment, including principal, premium or interest, under the applicable agreement on other indebtedness of, or guaranteed by, the Company or such applicable subsidiary in an aggregate amount of $100 million or more when due, or any other default or other event under the applicable agreement with respect to such indebtedness occurs which permits or results in the acceleration of $400 million or more in the aggregate of principal, and | ||||||||||||||
(c) | a default if the Company or any applicable subsidiary fails to discharge or stay within 60 days after the entry of a final judgment against the Company or such applicable subsidiary of more than $400 million. | ||||||||||||||
Failure of the Company to comply with any of the covenants or default provisions could result in a default under the applicable credit agreement which would allow the lenders to not fund future loan requests and to accelerate the due date of the outstanding principal and accrued interest on any outstanding indebtedness. |
VARIABLE_INTEREST_ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
VARIABLE INTEREST ENTITIES [Abstract] | ||||||||
Variable Interest Entities Disclosure [Text Block] | VARIABLE INTEREST ENTITIES | |||||||
Consolidated Variable Interest Entities | ||||||||
The Company holds variable interests in eight joint ventures for which the Company is the primary beneficiary. | ||||||||
Three of the joint ventures own and operate manufacturing and logistics facilities, which produce chemicals and provide services in Asia Pacific. The Company’s variable interest in these joint ventures relates to arrangements between the joint ventures and the Company involving the majority of the output on take-or-pay terms with pricing ensuring a guaranteed return to the joint ventures. | ||||||||
A fourth joint venture will construct, own and operate a membrane chlor-alkali facility to be located at the Company’s Freeport, Texas integrated manufacturing complex. The Company’s variable interests in this joint venture relate to equity options between the partners and a cost-plus off-take arrangement between the joint venture and the Company, involving proportional purchase commitments on take-or-pay terms and ensuring a guaranteed return to the joint venture. The Company will provide the joint venture with operation and maintenance services, utilities and raw materials; market the joint venture’s co-products; and convert the other partner’s proportional purchase commitments into ethylene dichloride under a tolling arrangement. The joint venture is expected to begin operations by the end of 2013. | ||||||||
The fifth joint venture manufactures products in Japan for the semiconductor industry. Each joint venture partner holds several equivalent variable interests, with the exception of a royalty agreement held exclusively between the joint venture and the Company. In addition, the entire output of the joint venture is sold to the Company for resale to third-party customers. | ||||||||
The sixth joint venture is an ethylene storage joint venture located in Alberta, Canada. Previously accounted for as an equity method investment, the Company became the primary beneficiary upon execution of new storage cavern agreements in 2011. The Company's variable interests relate to arrangements involving a majority of the joint venture's storage capacity on take-or-pay terms with pricing ensuring a guaranteed return to the joint venture; and favorably priced leases provided to the joint venture. The Company provides the joint venture with operation and maintenance services and utilities. | ||||||||
The seventh joint venture is a development-stage enterprise located in Brazil that will initially produce ethanol from sugarcane. The Company owned 100 percent of this entity until November 2011, when the Company sold a 50 percent interest to a third party. The Company's variable interests in this joint venture relate to an equity option between the partners, a parental guarantee related to debt financing and contractual arrangements limiting the partner's initial participation in the economics of certain assets and liabilities. On July 12, 2013, the partners amended governing documents of the joint venture, including terms of the equity option. These amendments do not result in a change to the Company’s accounting treatment of the joint venture. Terms of the equity option require the Company to purchase the partner's equity investment at a price based on a specified formula if the partner elects to exit the joint venture. The Company has classified a portion of the partner's equity investment as "Redeemable Noncontrolling Interest" in the consolidated balance sheets. The joint venture's ethanol mill is expected to process its first harvest of sugarcane in 2014. Original plans for the joint venture’s expansion into downstream derivative products have been postponed. | ||||||||
The eighth joint venture manages the growth, harvest and conditioning of soybean seed and grain, corn and wheat in several midwestern states in the United States. On March 2, 2012, the Company acquired a 49 percent equity interest in this venture. The Company's variable interest in this joint venture relates to an equity option between the partners. Terms of the equity option require the Company to purchase the partner's equity investment at a fixed price, after a specified period of time if the partner elects to sell its equity investment. The joint venture provides seed production services to the Company. | ||||||||
The Company also holds a variable interest in an owner trust, for which the Company is the primary beneficiary. The owner trust leases an ethylene facility in The Netherlands to the Company, whereby substantially all of the rights and obligations of ownership are transferred to the Company. On February 1, 2013, the Company notified the owner trust of its intent to purchase the facility upon expiration of the lease in January 2014 for $406 million. The Company’s variable interest in the owner trust relates to the fixed purchase price option. Prior to February 1, 2013, the Company's variable interest in the owner trust related to a residual value guarantee provided to the owner trust, which was valued at $363 million at December 31, 2012. | ||||||||
As the primary beneficiary of these variable interest entities ("VIEs"), the entities’ assets, liabilities and results of operations are included in the Company’s consolidated financial statements. The other equity holders’ interests are reflected in “Net income attributable to noncontrolling interests” in the consolidated statements of income and "Redeemable Noncontrolling Interest" and “Noncontrolling interests” in the consolidated balance sheets. The following table summarizes the carrying amounts of the entities’ assets and liabilities included in the Company’s consolidated balance sheets at September 30, 2013 and December 31, 2012: | ||||||||
Assets and Liabilities of Consolidated VIEs | Sep 30, | Dec 31, | ||||||
In millions | 2013 | 2012 | ||||||
Cash and cash equivalents (1) | $ | 170 | $ | 146 | ||||
Other current assets | 128 | 129 | ||||||
Property | 2,625 | 2,554 | ||||||
Other noncurrent assets | 122 | 139 | ||||||
Total assets (2) | $ | 3,045 | $ | 2,968 | ||||
Current liabilities (nonrecourse 2013: $259; 2012: $261) | $ | 605 | $ | 261 | ||||
Long-term debt (nonrecourse 2013: $1,456; 2012: $1,406) | 1,456 | 1,752 | ||||||
Other noncurrent liabilities (nonrecourse 2013: $75; 2012: $99) | 75 | 99 | ||||||
Total liabilities | $ | 2,136 | $ | 2,112 | ||||
-1 | Includes $2 million at September 30, 2013 ($2 million at December 31, 2012) specifically restricted for the construction of a manufacturing facility. | |||||||
-2 | All assets were restricted at September 30, 2013 and December 31, 2012. | |||||||
In addition, the Company holds a variable interest in an entity created to monetize accounts receivable of select European entities. The Company 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 $109 million (zero restricted) at September 30, 2013 ($179 million, zero restricted, at December 31, 2012) and zero current liabilities (zero nonrecourse) at September 30, 2013 (less than $1 million, less than $1 million nonrecourse, at December 31, 2012). | ||||||||
Amounts presented in the consolidated balance sheets and the table above as restricted assets or nonrecourse obligations relating to consolidated VIEs at September 30, 2013 and December 31, 2012 are adjusted for intercompany eliminations, parental guarantees and residual value guarantees. | ||||||||
Nonconsolidated Variable Interest Entity | ||||||||
The Company holds a variable interest in a joint venture that manufactures crude acrylic acid in the United States and Germany on behalf of the Company and the other joint venture partner. The variable interest relates to a cost-plus arrangement between the joint venture and each joint venture partner. The Company is not the primary beneficiary, as a majority of the joint venture’s output is sold to the other joint venture partner; therefore, the entity is accounted for under the equity method of accounting. At September 30, 2013, the Company’s investment in the joint venture was $148 million ($161 million at December 31, 2012), classified as “Investment in nonconsolidated affiliates” in the consolidated balance sheets, representing the Company’s maximum exposure to loss. |
PENSION_PLANS_AND_OTHER_POSTRE
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | |||||||||||||||
Net Periodic Benefit Cost for All Significant Plans | Three Months Ended | Nine Months Ended | ||||||||||||||
In millions | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Defined Benefit Pension Plans: | ||||||||||||||||
Service cost | $ | 117 | $ | 95 | $ | 352 | $ | 285 | ||||||||
Interest cost | 252 | 274 | 757 | 822 | ||||||||||||
Expected return on plan assets | (311 | ) | (316 | ) | (934 | ) | (948 | ) | ||||||||
Amortization of prior service cost | 6 | 6 | 18 | 19 | ||||||||||||
Amortization of net loss | 197 | 130 | 591 | 390 | ||||||||||||
Net periodic benefit cost | $ | 261 | $ | 189 | $ | 784 | $ | 568 | ||||||||
Other Postretirement Benefits: | ||||||||||||||||
Service cost | $ | 5 | $ | 4 | $ | 15 | $ | 12 | ||||||||
Interest cost | 20 | 23 | 60 | 69 | ||||||||||||
Amortization of prior service credit | (1 | ) | (1 | ) | (3 | ) | (3 | ) | ||||||||
Net periodic benefit cost | $ | 24 | $ | 26 | $ | 72 | $ | 78 | ||||||||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION | ||||||
On February 9, 2012, the Board of Directors authorized The Dow Chemical Company 2012 Employee Stock Purchase Plan (the "2012 ESPP") and The Dow Company 2012 Stock Incentive Plan (the "2012 Plan"). Both plans were approved by stockholders at the Company's annual meeting held on May 10, 2012 and became effective on that date. | |||||||
The 2012 ESPP superseded the Company's prior Employee Stock Purchase Plan. Under the 2013 annual offering of the 2012 ESPP, most employees were eligible to purchase shares of common stock of the Company valued at up to 10 percent of their annual base salary. The value is determined using the plan price multiplied by the number of shares subscribed to by the employee. The plan price of the stock is set each year at no less than 85 percent of market price. | |||||||
During the first quarter of 2013, employees subscribed to the right to purchase 8.3 million shares of the Company's common stock with a weighted-average exercise price of $27.05 per share and a weighted-average fair value of $7.20 per share under the 2012 ESPP. | |||||||
The Company grants and has granted stock-based compensation to employees and non-employee directors under the 2012 Plan, the 1988 Award and Option Plan (the "1988 Plan") and the 2003 Non-Employee Directors' Stock Incentive Plan (the "2003 Plan"). The 2012 Plan superseded the 1988 Plan and the 2003 Plan. Most of the Company's stock-based compensation awards are granted in the first quarter of each year. | |||||||
During the first quarter of 2013, the Company granted the following stock-based compensation awards to employees under the 2012 Plan: | |||||||
• | 17.1 million stock options with a weighted-average exercise price of $32.16 per share and a weighted-average fair value of $6.99 per share; | ||||||
• | 3.6 million shares of deferred stock with a weighted-average fair value of $32.16 per share; and | ||||||
• | 1.3 million shares of performance deferred stock with a weighted-average fair value of $34.41 per share. | ||||||
There was minimal grant activity to employees in the second and third quarters of 2013. | |||||||
During the second quarter of 2013, the Company granted the following stock-based compensation awards to non-employee directors under the 2012 Plan. | |||||||
• | 35,280 shares of restricted stock with a weighted-average fair value of $34.46 per share. | ||||||
There was minimal grant activity to non-employee directors in the third quarter of 2013. | |||||||
Total unrecognized compensation cost at September 30, 2013 is provided in the following table: | |||||||
Total Unrecognized Compensation Cost at September 30, 2013 | |||||||
In millions | Unrecognized | Weighted-average | |||||
Compensation | Recognition | ||||||
Cost | Period (Years) | ||||||
ESPP purchase rights | $ | 4 | 0.13 | ||||
Unvested stock options | $ | 97 | 0.87 | ||||
Deferred stock awards | $ | 112 | 0.88 | ||||
Performance deferred stock awards | $ | 28 | 0.75 | ||||
EARNINGS_PER_SHARE_CALCULATION
EARNINGS PER SHARE CALCULATIONS | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
EARNINGS PER SHARE CALCULATIONS | EARNINGS PER SHARE CALCULATIONS | |||||||||||||||
The following tables provide the earnings per share calculations for the three- and nine-month periods ended September 30, 2013 and 2012: | ||||||||||||||||
Net Income for Earnings Per Share Calculations - Basic | Three Months Ended | Nine Months Ended | ||||||||||||||
In millions | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income | $ | 685 | $ | 591 | $ | 3,788 | $ | 1,851 | ||||||||
Net income attributable to noncontrolling interests | (6 | ) | (9 | ) | (49 | ) | (38 | ) | ||||||||
Net income attributable to The Dow Chemical Company | $ | 679 | $ | 582 | $ | 3,739 | $ | 1,813 | ||||||||
Preferred stock dividends | (85 | ) | (85 | ) | (255 | ) | (255 | ) | ||||||||
Net income attributable to participating securities (1) | (5 | ) | (5 | ) | (30 | ) | (15 | ) | ||||||||
Net income attributable to common stockholders | $ | 589 | $ | 492 | $ | 3,454 | $ | 1,543 | ||||||||
Earnings Per Share Calculations - Basic | Three Months Ended | Nine Months Ended | ||||||||||||||
Dollars per share | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income | $ | 0.58 | $ | 0.5 | $ | 3.2 | $ | 1.58 | ||||||||
Net income attributable to noncontrolling interests | (0.01 | ) | (0.01 | ) | (0.04 | ) | (0.03 | ) | ||||||||
Net income attributable to The Dow Chemical Company | $ | 0.57 | $ | 0.49 | $ | 3.16 | $ | 1.55 | ||||||||
Preferred stock dividends | (0.07 | ) | (0.07 | ) | (0.22 | ) | (0.22 | ) | ||||||||
Net income attributable to participating securities (1) | — | — | (0.02 | ) | (0.01 | ) | ||||||||||
Net income attributable to common stockholders | $ | 0.5 | $ | 0.42 | $ | 2.92 | $ | 1.32 | ||||||||
Net Income for Earnings Per Share Calculations - Diluted | Three Months Ended | Nine Months Ended | ||||||||||||||
In millions | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net Income | $ | 685 | $ | 591 | $ | 3,788 | $ | 1,851 | ||||||||
Net Income attributable to noncontrolling interests | $ | (6 | ) | $ | (9 | ) | $ | (49 | ) | $ | (38 | ) | ||||
Net income attributable to The Dow Chemical Company | $ | 679 | $ | 582 | $ | 3,739 | $ | 1,813 | ||||||||
Preferred stock dividends (2) | (85 | ) | (85 | ) | — | (255 | ) | |||||||||
Net income attributable to participating securities (1) | (5 | ) | (5 | ) | (30 | ) | (15 | ) | ||||||||
Net income attributable to common stockholders | $ | 589 | $ | 492 | $ | 3,709 | $ | 1,543 | ||||||||
Earnings Per Share Calculations - Diluted | Three Months Ended | Nine Months Ended | ||||||||||||||
Dollars per share | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income | $ | 0.57 | $ | 0.5 | $ | 2.94 | $ | 1.57 | ||||||||
Net income attributable to noncontrolling interests | (0.01 | ) | (0.01 | ) | (0.04 | ) | (0.03 | ) | ||||||||
Net income attributable to The Dow Chemical Company | $ | 0.56 | $ | 0.49 | $ | 2.9 | $ | 1.54 | ||||||||
Preferred stock dividends (2) | (0.07 | ) | (0.07 | ) | — | (0.22 | ) | |||||||||
Net income attributable to participating securities (1) | — | — | (0.02 | ) | (0.01 | ) | ||||||||||
Net income attributable to common stockholders | $ | 0.49 | $ | 0.42 | $ | 2.88 | $ | 1.31 | ||||||||
-1 | Accounting Standards Codification Topic 260, "Earnings per Share," requires enterprises with participating securities to use the two-class method to calculate earnings per share and to report the most dilutive earnings per share amount. Deferred stock awards are considered participating securities due to Dow's practice of paying dividend equivalents on unvested shares. | |||||||||||||||
-2 | Preferred stock dividends were not added back in the calculation of diluted earnings per share for the three-month period ended September 30, 2013 and the three- and nine-month periods ended September 30, 2012 because the effect of adding them back would have been antidilutive. | |||||||||||||||
Additional Share Count Information | Three Months Ended | Nine Months Ended | ||||||||||||||
Shares in millions | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Weighted-average common shares - basic | 1,187.40 | 1,172.70 | 1,184.90 | 1,167.80 | ||||||||||||
Plus dilutive effect of stock options and awards | 6.8 | 6.8 | 6.1 | 7.1 | ||||||||||||
Plus dilutive effect of assumed conversion of preferred stock (1) | — | — | 96.8 | — | ||||||||||||
Weighted-average common shares - diluted | 1,194.20 | 1,179.50 | 1,287.80 | 1,174.90 | ||||||||||||
Stock options and deferred stock awards excluded from EPS calculations (2) | 39.2 | 54 | 56.5 | 52.2 | ||||||||||||
-1 | Conversion of the Cumulative Convertible Perpetual Preferred Stock, Series A into shares of the Company’s common stock was excluded from the calculation of diluted earnings per share for the three-month period ended September 30, 2013 and the three- and nine-month periods ended September 30, 2012 because the effect of including them would have been antidilutive. | |||||||||||||||
-2 | These outstanding options to purchase shares of common stock and deferred stock awards were excluded from the calculation of diluted earnings per share because the effect of including them would have been antidilutive. |
INCOME_TAXES_INCOME_TAXES
INCOME TAXES INCOME TAXES | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Income Taxes Disclosure [Abstract] | |||||||||
Income Tax Disclosure [Text Block] | INCOME TAXES | ||||||||
During the first quarter of 2013, court rulings on two separate tax matters resulted in the adjustment of uncertain tax positions. In February 2013, the U.S. District Court for the Middle District of Louisiana issued a ruling that disallowed, for tax purposes, transactions and partnerships associated with Chemtech, a wholly owned subsidiary. In March 2013, the U.S. Supreme Court denied certiorari in Union Carbide's research tax credit case. Through the denial of certiorari, the decision issued by the U.S. Court of Appeals denying Union Carbide's tax credit claim for supplies used in process-related research and development at its manufacturing facilities became final. As a result of these rulings, the Company adjusted uncertain tax positions related to these matters, resulting in a tax charge of $223 million in the first quarter of 2013. | |||||||||
The following table provides a reconciliation of the Company's unrecognized tax benefits for the periods ended September 30, 2013 and December 31, 2012: | |||||||||
Total Gross Unrecognized Tax Benefits | Sep 30, | Dec 31, | |||||||
In millions | 2013 | 2012 | |||||||
Balance at January 1 | $ | 409 | $ | 339 | |||||
Increases related to positions taken on items from prior years | 318 | 66 | |||||||
Decreases related to positions taken on items from prior years | (77 | ) | (32 | ) | |||||
Increases related to positions taken in the current year | 11 | 53 | |||||||
Settlement of uncertain tax positions with authorities | (353 | ) | (9 | ) | |||||
Decreases due to expiration of statutes of limitations | (7 | ) | (8 | ) | |||||
Balance at end of period | $ | 301 | $ | 409 | |||||
At September 30, 2013, the total amount of unrecognized tax benefits was $301 million ($409 million at December 31, 2012), of which $293 million would impact the effective tax rate, if recognized ($392 million at December 31, 2012). | |||||||||
Interest and penalties associated with uncertain tax positions, including the matters that resulted in the adjustment of uncertain tax positions, are recognized as components of "Provision for income taxes" in the consolidated statements of income and totaled a benefit of $16 million for the three months ended September 30, 2013 ($2 million benefit for the three months ended September 30, 2012). During the nine months ended September 30, 2013, the Company recognized a benefit of $167 million for interest and penalties associated with uncertain tax positions (a charge of $85 million for the nine months ended September 30, 2012). The Company's accrual for interest and penalties was $42 million at September 30, 2013 ($131 million at December 31, 2012). |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Comprehensive Income (Loss) Note [Text Block] | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||
The following table provides an analysis of the changes in accumulated other comprehensive income (loss) for the nine months ended September 30, 2013 and 2012: | ||||||||
Accumulated Other Comprehensive Income (Loss) | Nine Months Ended | |||||||
In millions | Sep 30, | Sep 30, | ||||||
2013 | 2012 | |||||||
Unrealized Gains on Investments at beginning of year | $ | 147 | $ | 78 | ||||
Net change in unrealized gains | 13 | 74 | ||||||
Reclassification to earnings - Net Sales (net of tax of $(14), $(5)) (1) | (24 | ) | (10 | ) | ||||
Reclassification to earnings - Sundry income (expense) - net (net of tax $-, $(1)) (1) | — | (1 | ) | |||||
Balance at end of period | $ | 136 | $ | 141 | ||||
Cumulative Translation Adjustments at beginning of year | 328 | 72 | ||||||
Translation adjustments | 55 | 165 | ||||||
Reclassification to earnings - Sundry income (expense) - net (2) | (21 | ) | — | |||||
Balance at end of period | $ | 362 | $ | 237 | ||||
Pension and Other Postretirement Benefit Plans at beginning of year | (7,995 | ) | (6,134 | ) | ||||
Adjustments to pension and other postretirement benefit plans (net of tax of $204, $134) (1) (3) | 432 | 279 | ||||||
Balance at end of period | $ | (7,563 | ) | $ | (5,855 | ) | ||
Accumulated Derivative Income (Loss) at beginning of year | 4 | (12 | ) | |||||
Net hedging results (4) | 2 | 1 | ||||||
Reclassification to earnings - Cost of sales (net of tax of $(5), $9) (1) (4) (5) | (11 | ) | 7 | |||||
Balance at end of period | $ | (5 | ) | $ | (4 | ) | ||
Total Accumulated Other Comprehensive Loss | $ | (7,070 | ) | $ | (5,481 | ) | ||
-1 | Tax amounts are included in "Provision for income taxes" in the consolidated statements of income. | |||||||
-2 | Reclassification resulted from the divestiture of a nonconsolidated affiliate. | |||||||
-3 | Included in "Net periodic benefit cost." See Note 12 for additional information. | |||||||
-4 | Accumulated Derivative Income (Loss) activity for 2012 was reclassified in accordance with newly implemented ASU 2013-02. | |||||||
-5 | Presentation of the tax component for 2012 was changed to conform to the current year presentation. |
OPERATING_SEGMENTS_AND_GEOGRAP
OPERATING SEGMENTS AND GEOGRAPHIC AREAS | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
OPERATING SEGMENTS AND GEOGRAPHIC AREAS | OPERATING SEGMENTS AND GEOGRAPHIC AREAS | |||||||||||||||
During the first quarter of 2013, the Company's Performance Plastics segment combined Dow Performance Packaging, Dow Hygiene and Medical, and Dow Polypropylene Licensing and Catalyst businesses into a newly created Dow Packaging and Specialty Plastics business to better align with the markets and customers served. The Performance Plastics businesses, which are reflected in the following updated profile for the segment, are as follows: | ||||||||||||||||
• | Dow Elastomers | |||||||||||||||
• | Dow Electrical and Telecommunications | |||||||||||||||
• | Dow Packaging and Specialty Plastics | |||||||||||||||
There were no other changes to Part I, Item I. Business included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. | ||||||||||||||||
Performance Plastics | ||||||||||||||||
The Performance Plastics segment consists of the solution-oriented portfolio of Dow Elastomers, Dow Electrical and Telecommunications, and Dow Packaging and Specialty Plastics. These businesses serve high-growth, high value sectors where Dow's world-class technology and rich innovation pipeline creates competitive advantages for customers and the entire value chain. Dow Elastomers is a leading global producer of polyolefin elastomers and the largest metallocene ethylene propylene diene monomer ("EPDM") producer providing a cost-advantaged position. Dow Electrical and Telecommunications is a pioneer in the production of polymers for wire and cable applications. Dow Packaging and Specialty Plastics is a leading materials supplier of polyethylene based resins, films and specialty polymers for strategic segments within its five global target market sectors - performance packaging, hygiene and medical, adhesives and functional materials, industrial specialties and photovoltaic films. | ||||||||||||||||
These businesses also have complementary market reach, asset capabilities and technology platforms that provide the Company with immediate and long-term growth synergies. The segment has broad geographic reach with sales in more than 100 countries and manufacturing facilities located in all geographic areas. Market growth is expected to be driven by major shifts in population demographics, improving socioeconomic status in emerging geographies, consumer and brand owner demand for increased consumer convenience, efforts to reduce food waste, growth in telecommunications networks, specifically broadband and LTE networks, and global development of electrical transmission and distribution infrastructure and renewable energy applications. | ||||||||||||||||
Details on Performance Plastics' 2012 sales, by business and geographic area, are as follows: | ||||||||||||||||
Products | ||||||||||||||||
Major products by business and applications/market segments are listed below: | ||||||||||||||||
Business | Major Products | Applications/Market Segments | ||||||||||||||
Dow Elastomers | Elastomers, plastomers, EPDMs | Adhesives, footwear, housewares, infrastructure, sports recreation, toys and infant products, transportation | ||||||||||||||
Dow Electrical and Telecommunications | Wire and cable insulation, semiconductive and jacketing compound solutions, bio-based plasticizers | Building and construction, electrical transmission and distribution infrastructure, telecommunications infrastructure | ||||||||||||||
Dow Packaging and Specialty Plastics | Polyethylene, low-density polyethylene, linear low-density polethylene, high-density polyethylene, polyolefin emulsions, polyolefin plastomers, acrylics | Adhesives; flexible packaging for food and beverages; rigid packaging for food, household goods and industrial products; medical end-use; personal care products; sealants; unitization films; and water, natural gas and irrigation pipe | ||||||||||||||
Transfers of products between operating segments are generally valued at cost. However, transfers of products to Agricultural Sciences from other segments are generally valued at market-based prices; the revenues generated by these transfers in the first nine months of 2013 and 2012 were immaterial and eliminated in consolidation. | ||||||||||||||||
Operating Segments | Three Months Ended | Nine Months Ended | ||||||||||||||
In millions | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Sales by operating segment | ||||||||||||||||
Electronic and Functional Materials | $ | 1,168 | $ | 1,111 | $ | 3,461 | $ | 3,383 | ||||||||
Coatings and Infrastructure Solutions | 1,839 | 1,730 | 5,394 | 5,321 | ||||||||||||
Agricultural Sciences | 1,410 | 1,302 | 5,363 | 4,816 | ||||||||||||
Performance Materials | 3,307 | 3,411 | 10,024 | 10,253 | ||||||||||||
Performance Plastics | 3,616 | 3,500 | 10,790 | 10,802 | ||||||||||||
Feedstocks and Energy | 2,328 | 2,521 | 7,427 | 8,113 | ||||||||||||
Corporate | 66 | 62 | 235 | 181 | ||||||||||||
Total | $ | 13,734 | $ | 13,637 | $ | 42,694 | $ | 42,869 | ||||||||
EBITDA (1) by operating segment | ||||||||||||||||
Electronic and Functional Materials | $ | 287 | $ | 273 | $ | 814 | $ | 803 | ||||||||
Coatings and Infrastructure Solutions | 283 | 246 | 719 | 787 | ||||||||||||
Agricultural Sciences | 18 | 63 | 792 | 821 | ||||||||||||
Performance Materials | 314 | 491 | 1,038 | 1,173 | ||||||||||||
Performance Plastics | 970 | 737 | 2,932 | 2,215 | ||||||||||||
Feedstocks and Energy | 187 | 200 | 620 | 532 | ||||||||||||
Corporate | (225 | ) | (212 | ) | 1,305 | (865 | ) | |||||||||
Total | $ | 1,834 | $ | 1,798 | $ | 8,220 | $ | 5,466 | ||||||||
Equity in earnings (losses) of nonconsolidated affiliates by operating segment (included in EBITDA) | ||||||||||||||||
Electronic and Functional Materials | $ | 36 | $ | 27 | $ | 81 | $ | 81 | ||||||||
Coatings and Infrastructure Solutions | 32 | 29 | 83 | 96 | ||||||||||||
Agricultural Sciences | 3 | 3 | 6 | 3 | ||||||||||||
Performance Materials | (11 | ) | (30 | ) | (46 | ) | (67 | ) | ||||||||
Performance Plastics | 134 | 28 | 279 | 101 | ||||||||||||
Feedstocks and Energy | 135 | 123 | 399 | 300 | ||||||||||||
Corporate | (7 | ) | (5 | ) | (22 | ) | (22 | ) | ||||||||
Total | $ | 322 | $ | 175 | $ | 780 | $ | 492 | ||||||||
-1 | The Company uses EBITDA (which Dow defines as earnings (i.e., "Net Income") before interest, income taxes, depreciation and amortization) as its measure of profit/loss for segment reporting purposes. EBITDA by operating segment includes all operating items relating to the businesses, except depreciation and amortization; items that principally apply to the Company as a whole are assigned to Corporate. A reconciliation of EBITDA to "Income Before Income Taxes" is provided below. | |||||||||||||||
Reconciliation of EBITDA to “Income Before Income Taxes” | Three Months Ended | Nine Months Ended | ||||||||||||||
In millions | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
EBITDA | $ | 1,834 | $ | 1,798 | $ | 8,220 | $ | 5,466 | ||||||||
- Depreciation and amortization | 665 | 665 | 1,992 | 2,018 | ||||||||||||
+ Interest income | 11 | 10 | 29 | 26 | ||||||||||||
- Interest expense and amortization of debt discount | 264 | 318 | 839 | 959 | ||||||||||||
Income Before Income Taxes | $ | 916 | $ | 825 | $ | 5,418 | $ | 2,515 | ||||||||
Geographic Areas | Three Months Ended | Nine Months Ended | ||||||||||||||
In millions | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Sales by geographic area | ||||||||||||||||
United States | $ | 4,471 | $ | 4,394 | $ | 14,089 | $ | 14,029 | ||||||||
Europe, Middle East and Africa | 4,308 | 4,446 | 13,794 | 14,680 | ||||||||||||
Rest of World | 4,955 | 4,797 | 14,811 | 14,160 | ||||||||||||
Total | $ | 13,734 | $ | 13,637 | $ | 42,694 | $ | 42,869 | ||||||||
SUBSEQUENT_EVENT_SUBSEQUENT_EV
SUBSEQUENT EVENT SUBSEQUENT EVENT | 9 Months Ended |
Sep. 30, 2013 | |
Text Block [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENT |
On October 11, 2013, the Company entered into a definitive agreement under which the Company’s global Polypropylene Licensing and Catalysts business will be divested to W. R. Grace & Co. for a sale price of $500 million. The transaction is expected to close by the end of 2013, pending regulatory approval, and the Company expects to report a gain on this divestiture. The divestiture will include the Company’s polypropylene catalysts manufacturing facility in Norco, Louisiana. Also included are customer contracts, licenses, intellectual property and inventory. |
RESTRUCTURING_Tables
RESTRUCTURING (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | ||||||||||||
1Q12 Restructuring Activities | Costs Associated with Exit or Disposal Activities | |||||||||||
In millions | Severance Costs | Total | ||||||||||
Reserve balance at December 31, 2012 | $ | 56 | $ | 31 | $ | 87 | ||||||
Cash payments | (4 | ) | (20 | ) | (24 | ) | ||||||
Noncash settlements | (7 | ) | — | (7 | ) | |||||||
Foreign currency impact | (1 | ) | — | (1 | ) | |||||||
Reserve balance at March 31, 2013 | $ | 44 | $ | 11 | $ | 55 | ||||||
Cash payments | (4 | ) | (5 | ) | (9 | ) | ||||||
Noncash settlements | (1 | ) | — | (1 | ) | |||||||
Reserve balance at June 30, 2013 | $ | 39 | $ | 6 | $ | 45 | ||||||
Cash payments | (1 | ) | (1 | ) | (2 | ) | ||||||
Reserve balance at September 30, 2013 | $ | 38 | $ | 5 | $ | 43 | ||||||
4Q12 Restructuring Activities | Costs Associated with Exit or Disposal Activities | Severance Costs | Total | |||||||||
In millions | ||||||||||||
Reserve balance at December 31, 2012 | $ | 30 | $ | 367 | $ | 397 | ||||||
Cash payments | (1 | ) | (69 | ) | (70 | ) | ||||||
Reserve balance at March 31, 2013 | $ | 29 | $ | 298 | $ | 327 | ||||||
Cash payments | (1 | ) | (59 | ) | (60 | ) | ||||||
Reserve balance at June 30, 2013 | $ | 28 | $ | 239 | $ | 267 | ||||||
Cash payments | (1 | ) | (55 | ) | (56 | ) | ||||||
Reserve balance at September 30, 2013 | $ | 27 | $ | 184 | $ | 211 | ||||||
INVENTORIES_Tables
INVENTORIES (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of Inventory, Current [Table Text Block] | ||||||||
Inventories | Sep 30, 2013 | Dec 31, 2012 | ||||||
In millions | ||||||||
Finished goods | $ | 4,872 | $ | 4,880 | ||||
Work in process | 2,223 | 1,910 | ||||||
Raw materials | 929 | 866 | ||||||
Supplies | 868 | 820 | ||||||
Total inventories | $ | 8,892 | $ | 8,476 | ||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||
Goodwill By Operating Segment | ||||||||||||||||||||||||||||
Goodwill | Electronic | Coatings | Ag | Perf | Perf | Feedstocks | Total | |||||||||||||||||||||
and | and Infra- | Sciences | Materials | Plastics | and Energy | |||||||||||||||||||||||
Functional | structure | |||||||||||||||||||||||||||
In millions | Materials | Solutions | ||||||||||||||||||||||||||
Net goodwill at Dec 31, 2012 | $ | 4,945 | $ | 4,052 | $ | 1,558 | $ | 740 | $ | 1,381 | $ | 63 | $ | 12,739 | ||||||||||||||
Sale of a Plastics Additives product line | — | — | — | (3 | ) | — | — | (3 | ) | |||||||||||||||||||
Foreign currency impact | 9 | 13 | — | 1 | 8 | — | 31 | |||||||||||||||||||||
Net goodwill at Sep 30, 2013 | $ | 4,954 | $ | 4,065 | $ | 1,558 | $ | 738 | $ | 1,389 | $ | 63 | $ | 12,767 | ||||||||||||||
Other Intangible Assets | ||||||||||||||||||||||||||||
Other Intangible Assets | At September 30, 2013 | At December 31, 2012 | ||||||||||||||||||||||||||
In millions | Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||||||
Intangible assets with finite lives: | ||||||||||||||||||||||||||||
Licenses and intellectual property | $ | 1,771 | $ | (866 | ) | $ | 905 | $ | 1,729 | $ | (747 | ) | $ | 982 | ||||||||||||||
Patents | 124 | (106 | ) | 18 | 120 | (100 | ) | 20 | ||||||||||||||||||||
Software | 1,145 | (597 | ) | 548 | 1,047 | (548 | ) | 499 | ||||||||||||||||||||
Trademarks | 686 | (329 | ) | 357 | 691 | (285 | ) | 406 | ||||||||||||||||||||
Customer related | 3,630 | (1,129 | ) | 2,501 | 3,688 | (974 | ) | 2,714 | ||||||||||||||||||||
Other | 158 | (141 | ) | 17 | 158 | (131 | ) | 27 | ||||||||||||||||||||
Total other intangible assets, finite lives | $ | 7,514 | $ | (3,168 | ) | $ | 4,346 | $ | 7,433 | $ | (2,785 | ) | $ | 4,648 | ||||||||||||||
IPR&D (1), indefinite lives | 37 | — | 37 | 63 | — | 63 | ||||||||||||||||||||||
Total other intangible assets | $ | 7,551 | $ | (3,168 | ) | $ | 4,383 | $ | 7,496 | $ | (2,785 | ) | $ | 4,711 | ||||||||||||||
-1 | In-process research and development (“IPR&D”) purchased in a business combination. | |||||||||||||||||||||||||||
Schedule of Amortization Expense of Intangible Assets | ||||||||||||||||||||||||||||
Amortization Expense | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
In millions | Sep 30, 2013 | Sep 30, 2012 | Sep 30, 2013 | Sep 30, 2012 | ||||||||||||||||||||||||
Other intangible assets, excluding software | $ | 114 | $ | 117 | $ | 344 | $ | 361 | ||||||||||||||||||||
Software, included in “Cost of sales” | $ | 15 | $ | 15 | $ | 48 | $ | 46 | ||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ||||||||||||||||||||||||||||
Estimated Amortization Expense | ||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||
2013 | $ | 527 | ||||||||||||||||||||||||||
2014 | $ | 512 | ||||||||||||||||||||||||||
2015 | $ | 494 | ||||||||||||||||||||||||||
2016 | $ | 482 | ||||||||||||||||||||||||||
2017 | $ | 448 | ||||||||||||||||||||||||||
2018 | $ | 431 | ||||||||||||||||||||||||||
FINANCIAL_INSTRUMENTS_Tables
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Financial Instruments [Abstact] | ||||||||||||||||||||||||||||||||
Investing Results | ||||||||||||||||||||||||||||||||
Investing Results | Nine Months Ended | |||||||||||||||||||||||||||||||
In millions | Sep 30, | Sep 30, | ||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Proceeds from sales of available-for-sale securities | $ | 409 | $ | 401 | ||||||||||||||||||||||||||||
Gross realized gains | $ | 63 | $ | 30 | ||||||||||||||||||||||||||||
Gross realized losses | $ | (12 | ) | $ | (10 | ) | ||||||||||||||||||||||||||
Contractual Maturities of Debt Securities | ||||||||||||||||||||||||||||||||
Contractual Maturities of Debt Securities | ||||||||||||||||||||||||||||||||
at September 30, 2013 | ||||||||||||||||||||||||||||||||
In millions | Amortized Cost | Fair Value | ||||||||||||||||||||||||||||||
Within one year | $ | 35 | $ | 35 | ||||||||||||||||||||||||||||
One to five years | 468 | 505 | ||||||||||||||||||||||||||||||
Six to ten years | 552 | 567 | ||||||||||||||||||||||||||||||
After ten years | 142 | 160 | ||||||||||||||||||||||||||||||
Total | $ | 1,197 | $ | 1,267 | ||||||||||||||||||||||||||||
Fair Value and Gross Unrealized Losses of Investments Temporarily Impaired | ||||||||||||||||||||||||||||||||
Temporarily Impaired Securities Less than 12 Months (1) | ||||||||||||||||||||||||||||||||
At September 30, 2013 | At December 31, 2012 | |||||||||||||||||||||||||||||||
In millions | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||||||||
Value | Losses | Value | Losses | |||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
Government debt (2) | $ | 100 | $ | (5 | ) | $ | — | $ | — | |||||||||||||||||||||||
Corporate bonds | 165 | (5 | ) | 22 | (1 | ) | ||||||||||||||||||||||||||
Total debt securities | $ | 265 | $ | (10 | ) | $ | 22 | $ | (1 | ) | ||||||||||||||||||||||
Equity securities | 169 | (8 | ) | 30 | (2 | ) | ||||||||||||||||||||||||||
Total temporarily impaired securities | $ | 434 | $ | (18 | ) | $ | 52 | $ | (3 | ) | ||||||||||||||||||||||
-1 | Unrealized losses of 12 months or more were less than $1 million. | |||||||||||||||||||||||||||||||
-2 | U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities' obligations. | |||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||||||||||||
At September 30, 2013 | At December 31, 2012 | |||||||||||||||||||||||||||||||
In millions | Cost | Gain | Loss | Fair | Cost | Gain | Loss | Fair | ||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||
Marketable securities: (1) | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
Government debt (2) | $ | 532 | $ | 34 | $ | (5 | ) | $ | 561 | $ | 506 | $ | 59 | $ | — | $ | 565 | |||||||||||||||
Corporate bonds | 665 | 47 | (6 | ) | 706 | 676 | 81 | (1 | ) | 756 | ||||||||||||||||||||||
Total debt securities | $ | 1,197 | $ | 81 | $ | (11 | ) | $ | 1,267 | $ | 1,182 | $ | 140 | $ | (1 | ) | $ | 1,321 | ||||||||||||||
Equity securities | 592 | 153 | (8 | ) | 737 | 634 | 109 | (3 | ) | 740 | ||||||||||||||||||||||
Total marketable securities | $ | 1,789 | $ | 234 | $ | (19 | ) | $ | 2,004 | $ | 1,816 | $ | 249 | $ | (4 | ) | $ | 2,061 | ||||||||||||||
Long-term debt incl. debt due within one year (3) | $ | (18,167 | ) | $ | 257 | $ | (2,113 | ) | $ | (20,023 | ) | $ | (20,591 | ) | $ | 24 | $ | (3,195 | ) | $ | (23,762 | ) | ||||||||||
Derivatives relating to: | ||||||||||||||||||||||||||||||||
Interest rates | $ | — | $ | 1 | $ | (4 | ) | $ | (3 | ) | $ | — | $ | 1 | $ | (6 | ) | $ | (5 | ) | ||||||||||||
Commodities (4) | $ | — | $ | 13 | $ | (11 | ) | $ | 2 | $ | — | $ | 26 | $ | (7 | ) | $ | 19 | ||||||||||||||
Foreign currency | $ | — | $ | 67 | $ | (27 | ) | $ | 40 | $ | — | $ | 34 | $ | (20 | ) | $ | 14 | ||||||||||||||
-1 | Included in “Other investments” in the consolidated balance sheets. | |||||||||||||||||||||||||||||||
-2 | U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. | |||||||||||||||||||||||||||||||
-3 | Cost includes fair value adjustments of $22 million at September 30, 2013 and $23 million at December 31, 2012. | |||||||||||||||||||||||||||||||
-4 | Presented net of cash collateral, as disclosed in Note 7. | |||||||||||||||||||||||||||||||
Notional Amount of Commodity Forward Contracts | ||||||||||||||||||||||||||||||||
Commodity | Sep 30, | Dec 31, | Notional Volume Unit | |||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Corn | 4.9 | 1.9 | million bushels | |||||||||||||||||||||||||||||
Crude Oil | 1.5 | 0.4 | million barrels | |||||||||||||||||||||||||||||
Ethane | 1.8 | 1.8 | million barrels | |||||||||||||||||||||||||||||
Naphtha | 2 | 90 | kilotons | |||||||||||||||||||||||||||||
Natural Gas | 113.2 | 186 | million million British thermal units | |||||||||||||||||||||||||||||
Soybeans | 1.6 | 1.3 | million bushels | |||||||||||||||||||||||||||||
Notional Amount of Other Commodity Contracts | ||||||||||||||||||||||||||||||||
Commodity | Sep 30, | Dec 31, | Notional Volume Unit | |||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Ethane | 0.4 | 1 | million barrels | |||||||||||||||||||||||||||||
Naphtha | 69 | — | kilotons | |||||||||||||||||||||||||||||
Natural Gas | 9.2 | 33 | million million British thermal units | |||||||||||||||||||||||||||||
Propane | 45 | — | kilotons | |||||||||||||||||||||||||||||
Schedule Fair Values of Derivative Instruments | ||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments | Balance Sheet Classification | Sep 30, | Dec 31, | |||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||||||||||
Interest rates | Other current assets | $ | 1 | $ | 1 | |||||||||||||||||||||||||||
Commodities | Other current assets | 16 | 28 | |||||||||||||||||||||||||||||
Foreign currency | Accounts and notes receivable – Other | 4 | 3 | |||||||||||||||||||||||||||||
Total derivatives designated as hedges | $ | 21 | $ | 32 | ||||||||||||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||||||||||
Commodities | Other current assets | $ | 1 | $ | 3 | |||||||||||||||||||||||||||
Foreign currency | Accounts and notes receivable – Other | 96 | 52 | |||||||||||||||||||||||||||||
Total derivatives not designated as hedges | $ | 97 | $ | 55 | ||||||||||||||||||||||||||||
Total asset derivatives | $ | 118 | $ | 87 | ||||||||||||||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||||||||||
Interest rates | Accounts payable – Other | $ | 4 | $ | 5 | |||||||||||||||||||||||||||
Commodities | Accounts payable – Other | 19 | 21 | |||||||||||||||||||||||||||||
Foreign currency | Accounts payable – Other | 12 | 14 | |||||||||||||||||||||||||||||
Total derivatives designated as hedges | $ | 35 | $ | 40 | ||||||||||||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||||||||||
Interest rates | Accounts payable – Other | $ | — | $ | 1 | |||||||||||||||||||||||||||
Commodities | Accounts payable – Other | 2 | 6 | |||||||||||||||||||||||||||||
Foreign currency | Accounts payable – Other | 48 | 27 | |||||||||||||||||||||||||||||
Total derivatives not designated as hedges | $ | 50 | $ | 34 | ||||||||||||||||||||||||||||
Total liability derivatives | $ | 85 | $ | 74 | ||||||||||||||||||||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ||||||||||||||||||||
Basis of Fair Value Measurements | Quoted Prices | Significant | Significant | Counterparty | Total | |||||||||||||||
on a Recurring Basis | in Active | Other | Unobservable | and Cash | ||||||||||||||||
at September 30, 2013 | Markets for | Observable | Inputs | Collateral | ||||||||||||||||
Identical Items | Inputs | (Level 3) | Netting (1) | |||||||||||||||||
In millions | (Level 1) | (Level 2) | ||||||||||||||||||
Assets at fair value: | ||||||||||||||||||||
Cash equivalents (2) | $ | — | $ | 2,088 | $ | — | $ | — | $ | 2,088 | ||||||||||
Interests in trade accounts receivable conduits (3) | — | — | 1,363 | — | 1,363 | |||||||||||||||
Equity securities (4) | 702 | 35 | — | — | 737 | |||||||||||||||
Debt securities: (4) | ||||||||||||||||||||
Government debt (5) | — | 561 | — | — | 561 | |||||||||||||||
Corporate bonds | — | 706 | — | — | 706 | |||||||||||||||
Derivatives relating to: (6) | ||||||||||||||||||||
Interest rates | — | 1 | — | — | 1 | |||||||||||||||
Commodities | 5 | 12 | — | (4 | ) | 13 | ||||||||||||||
Foreign currency | — | 100 | — | (33 | ) | 67 | ||||||||||||||
Total assets at fair value | $ | 707 | $ | 3,503 | $ | 1,363 | $ | (37 | ) | $ | 5,536 | |||||||||
Liabilities at fair value: | ||||||||||||||||||||
Long-term debt (7) | $ | — | $ | 20,023 | $ | — | $ | — | $ | 20,023 | ||||||||||
Derivatives relating to: (6) | ||||||||||||||||||||
Interest rates | — | 4 | — | — | 4 | |||||||||||||||
Commodities | 9 | 12 | — | (10 | ) | 11 | ||||||||||||||
Foreign currency | — | 60 | — | (33 | ) | 27 | ||||||||||||||
Total liabilities at fair value | $ | 9 | $ | 20,099 | $ | — | $ | (43 | ) | $ | 20,065 | |||||||||
-1 | 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. | |||||||||||||||||||
-2 | Primarily Treasury Bills included in "Cash and cash equivalents" in the consolidated balance sheets and held at amortized cost, which approximates fair value. | |||||||||||||||||||
-3 | Included in “Accounts and notes receivable – Other” in the consolidated balance sheets. See Note 9 for additional information on transfers of financial assets. | |||||||||||||||||||
-4 | The Company’s investments in equity and debt securities are primarily classified as available-for-sale and 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 6 for the classification of derivatives in the consolidated balance sheets. | |||||||||||||||||||
-7 | See Note 6 for information on fair value adjustments to long-term debt, included at cost in the consolidated balance sheets. | |||||||||||||||||||
Basis of Fair Value Measurements | Quoted Prices | Significant | Significant | Counterparty | Total | |||||||||||||||
on a Recurring Basis | in Active | Other | Unobservable | and Cash | ||||||||||||||||
at December 31, 2012 | Markets for | Observable | Inputs | Collateral | ||||||||||||||||
Identical Items | Inputs | (Level 3) | Netting (1) | |||||||||||||||||
In millions | (Level 1) | (Level 2) | ||||||||||||||||||
Assets at fair value: | ||||||||||||||||||||
Cash equivalents (2) | $ | — | $ | 1,953 | $ | — | $ | — | $ | 1,953 | ||||||||||
Interests in trade accounts receivable conduits (3) | — | — | 1,057 | — | 1,057 | |||||||||||||||
Equity securities (4) | 702 | 38 | — | — | 740 | |||||||||||||||
Debt securities: (4) | ||||||||||||||||||||
Government debt (5) | — | 565 | — | — | 565 | |||||||||||||||
Corporate bonds | — | 756 | — | — | 756 | |||||||||||||||
Derivatives relating to: (6) | ||||||||||||||||||||
Interest rates | — | 1 | — | — | 1 | |||||||||||||||
Commodities | 9 | 22 | — | (5 | ) | 26 | ||||||||||||||
Foreign currency | — | 55 | — | (21 | ) | 34 | ||||||||||||||
Total assets at fair value | $ | 711 | $ | 3,390 | $ | 1,057 | $ | (26 | ) | $ | 5,132 | |||||||||
Liabilities at fair value: | ||||||||||||||||||||
Long-term debt (7) | $ | — | $ | 23,762 | $ | — | $ | — | $ | 23,762 | ||||||||||
Derivatives relating to: (6) | ||||||||||||||||||||
Interest rates | — | 6 | — | — | 6 | |||||||||||||||
Commodities | 16 | 11 | — | (20 | ) | 7 | ||||||||||||||
Foreign currency | — | 41 | — | (21 | ) | 20 | ||||||||||||||
Total liabilities at fair value | $ | 16 | $ | 23,820 | $ | — | $ | (41 | ) | $ | 23,795 | |||||||||
-1 | 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. | |||||||||||||||||||
-2 | Primarily Treasury Bills included in "Cash and cash equivalents" in the consolidated balance sheets and held at amortized cost, which approximates fair value. | |||||||||||||||||||
-3 | Included in “Accounts and notes receivable – Other” in the consolidated balance sheets. See Note 9 for additional information on transfers of financial assets. | |||||||||||||||||||
-4 | The Company’s investments in equity and debt securities are primarily classified as available-for-sale and 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 6 for the classification of derivatives in the consolidated balance sheets. | |||||||||||||||||||
-7 | See Note 6 for information on fair value adjustments to long-term debt, included at cost in the consolidated balance sheets. | |||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ||||||||||||||||||||
Fair Value Measurements Using Level 3 Inputs | Three Months Ended | Nine Months Ended | ||||||||||||||||||
Interests Held in Trade Receivable Conduits (1) | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Balance at beginning of period | $ | 1,291 | $ | 1,220 | $ | 1,057 | $ | 1,141 | ||||||||||||
Loss included in earnings (2) | (1 | ) | (2 | ) | (3 | ) | (4 | ) | ||||||||||||
Purchases | 325 | 343 | 997 | 2,396 | ||||||||||||||||
Settlements | (252 | ) | (218 | ) | (688 | ) | (2,190 | ) | ||||||||||||
Balance at September 30 | $ | 1,363 | $ | 1,343 | $ | 1,363 | $ | 1,343 | ||||||||||||
-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. | |||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Table Text Block] | ||||||||||||||||||||
Basis of Fair Value Measurements | Significant | Total | ||||||||||||||||||
on a Nonrecurring Basis | Other | Losses | ||||||||||||||||||
at September 30, 2012 | Unobservable | |||||||||||||||||||
Inputs | ||||||||||||||||||||
In millions | (Level 3) | 2012 | ||||||||||||||||||
Assets at fair value: | ||||||||||||||||||||
Long-lived assets and other assets | $ | 10 | $ | (123 | ) | |||||||||||||||
COMMITMENTS_AND_CONTINGENT_LIA1
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||
Receivables for Asbestos-Related Costs | ||||||||||
Receivables for Asbestos-Related Costs | Sep 30, | Dec 31, | ||||||||
In millions | 2013 | 2012 | ||||||||
Receivables for defense costs – carriers with settlement agreements | $ | 16 | $ | 17 | ||||||
Receivables for resolution costs – carriers with settlement agreements | 124 | 137 | ||||||||
Receivables for insurance recoveries – carriers without settlement agreements | 25 | 25 | ||||||||
Total | $ | 165 | $ | 179 | ||||||
Table of Fixed and Determinable Portion of Take-or-Pay and Throughput Obligations | ||||||||||
Fixed and Determinable Portion of Take-or-Pay and | ||||||||||
Throughput Obligations at December 31, 2012 | ||||||||||
In millions | ||||||||||
2013 | $ | 2,570 | ||||||||
2014 | 2,607 | |||||||||
2015 | 2,141 | |||||||||
2016 | 1,904 | |||||||||
2017 | 1,712 | |||||||||
2018 and beyond | 8,106 | |||||||||
Total | $ | 19,040 | ||||||||
Table of Guarantees by Type | ||||||||||
Guarantees at December 31, 2012 | Final | Maximum Future | Recorded | |||||||
In millions | Expiration | Payments (1) | Liability | |||||||
Guarantees | 2021 | $ | 1,544 | $ | 48 | |||||
Residual value guarantees (2) | 2021 | 637 | 31 | |||||||
Total guarantees | $ | 2,181 | $ | 79 | ||||||
-1 | The Company was indemnified by a third party for $49 million if required to perform under a $98 million guarantee. | |||||||||
-2 | Does not include the residual value guarantee related to the Company's variable interest in an owner trust; see Note 11. | |||||||||
Guarantees at September 30, 2013 | Final | Maximum Future | Recorded | |||||||
In millions | Expiration | Payments | Liability | |||||||
Guarantees | 2021 | $ | 4,845 | $ | 96 | |||||
Residual value guarantees | 2021 | 685 | 28 | |||||||
Total guarantees | $ | 5,530 | $ | 124 | ||||||
TRANSFERS_OF_FINANCIAL_ASSETS_
TRANSFERS OF FINANCIAL ASSETS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
North America and Europe [Member] | ||||||||||||||||
Tranfers of Financial Assets [Line Items] | ||||||||||||||||
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets [Table Text Block] | ||||||||||||||||
Interests Held | Sep 30, | Dec 31, | ||||||||||||||
In millions | 2013 | 2012 | ||||||||||||||
Carrying value of interests held | $ | 1,363 | $ | 1,057 | ||||||||||||
Percentage of anticipated credit losses | 0.76 | % | 0.73 | % | ||||||||||||
Impact to carrying value - 10% adverse change | $ | 1 | $ | 1 | ||||||||||||
Impact to carrying value - 20% adverse change | $ | 3 | $ | 2 | ||||||||||||
Schedule of Certain Cash Flows Between the Company and the Conduits | ||||||||||||||||
Cash Proceeds | Three Months Ended | Nine Months Ended | ||||||||||||||
In millions | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Sale of receivables | $ | — | $ | — | $ | 19 | $ | 57 | ||||||||
Collections reinvested in revolving receivables | $ | 6,489 | $ | 6,432 | $ | 19,229 | $ | 19,489 | ||||||||
Interests in conduits (1) | $ | 252 | $ | 218 | $ | 688 | $ | 2,190 | ||||||||
-1 | Presented in "Operating Activities" in the consolidated statements of cash flows. | |||||||||||||||
Schedule of Quantitative Information about Derecognized Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Table Text Block] | ||||||||||||||||
Trade Accounts Receivable Sold | Sep 30, | Dec 31, | ||||||||||||||
In millions | 2013 | 2012 | ||||||||||||||
Delinquencies on sold receivables still outstanding | $ | 129 | $ | 164 | ||||||||||||
Trade accounts receivable outstanding and derecognized | $ | 2,654 | $ | 2,294 | ||||||||||||
Asia Pacific [Member] | ||||||||||||||||
Tranfers of Financial Assets [Line Items] | ||||||||||||||||
Schedule of Certain Cash Flows Between the Company and the Third-Party Holders of the Participating Interests | ||||||||||||||||
Cash Proceeds | Three Months Ended | Nine Months Ended | ||||||||||||||
In millions | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Sale of participating interests | $ | 13 | $ | 16 | $ | 39 | $ | 48 | ||||||||
Collections reinvested in revolving receivables | $ | 13 | $ | 13 | $ | 35 | $ | 42 | ||||||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Table Text Block] | ||||||||||||||||
Trade Accounts Receivable | Sep 30, | Dec 31, | ||||||||||||||
In millions | 2013 | 2012 | ||||||||||||||
Derecognized from the consolidated balance sheets | $ | 9 | $ | 13 | ||||||||||||
Outstanding in the consolidated balance sheets | 182 | 283 | ||||||||||||||
Total accounts receivable in select Asia Pacific entities | $ | 191 | $ | 296 | ||||||||||||
NOTES_PAYABLE_LONGTERM_DEBT_AN1
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||
Schedule of Short-term Debt [Table Text Block] | |||||||||||||||
Notes Payable | Sep 30, | Dec 31, | |||||||||||||
In millions | 2013 | 2012 | |||||||||||||
Notes payable to banks | $ | 353 | $ | 319 | |||||||||||
Notes payable to related companies | 90 | 66 | |||||||||||||
Notes payable trade | 9 | 11 | |||||||||||||
Total notes payable | $ | 452 | $ | 396 | |||||||||||
Period-end average interest rates | 2.82 | % | 3.14 | % | |||||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | |||||||||||||||
Long-Term Debt | 2013 | Sep 30, | 2012 | Dec 31, | |||||||||||
Average | 2013 | Average | 2012 | ||||||||||||
In millions | Rate | Rate | |||||||||||||
Promissory notes and debentures: | |||||||||||||||
Final maturity 2013 | 9.8 | % | $ | 3 | 6.01 | % | $ | 404 | |||||||
Final maturity 2014 | 5.36 | % | 397 | 6.86 | % | 1,138 | |||||||||
Final maturity 2015 | 2.95 | % | 53 | 5.82 | % | 1,290 | |||||||||
Final maturity 2016 | 2.53 | % | 803 | 2.54 | % | 789 | |||||||||
Final maturity 2017 | 5.82 | % | 902 | 5.88 | % | 890 | |||||||||
Final maturity 2018 | 5.53 | % | 853 | 5.59 | % | 840 | |||||||||
Final maturity 2019 and thereafter | 5.95 | % | 12,177 | 5.96 | % | 12,148 | |||||||||
Other facilities: | |||||||||||||||
U.S. dollar loans, various rates and maturities | 1.52 | % | 579 | 2.3 | % | 288 | |||||||||
Foreign currency loans, various rates and maturities | 3.4 | % | 1,233 | 3.5 | % | 1,336 | |||||||||
Medium-term notes, varying maturities through 2023 | 3.81 | % | 984 | 4.26 | % | 1,132 | |||||||||
Pollution control/industrial revenue bonds, varying maturities through 2038 | 5.59 | % | 518 | 5.67 | % | 718 | |||||||||
Capital lease obligations | — | 45 | — | 21 | |||||||||||
Unamortized debt discount | — | (380 | ) | — | (403 | ) | |||||||||
Long-term debt due within one year | — | (680 | ) | — | (672 | ) | |||||||||
Long-term debt | — | $ | 17,487 | — | $ | 19,919 | |||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | |||||||||||||||
Annual Installments on Long-Term Debt | |||||||||||||||
For Next Five Years at September 30, 2013 | |||||||||||||||
In millions | |||||||||||||||
2013 | $ | 69 | |||||||||||||
2014 | $ | 697 | |||||||||||||
2015 | $ | 466 | |||||||||||||
2016 | $ | 1,367 | |||||||||||||
2017 | $ | 1,192 | |||||||||||||
2018 | $ | 1,169 | |||||||||||||
Schedule of Line of Credit Facilities [Table Text Block] | |||||||||||||||
Committed and Available Credit Facilities at September 30, 2013 | |||||||||||||||
In millions | Effective Date | Committed Credit | Credit Available | Maturity Date | Interest | ||||||||||
Five Year Competitive Advance and Revolving Credit Facility | Oct-11 | $ | 5,000 | $ | 5,000 | Oct-16 | Floating rate | ||||||||
Bilateral Revolving Credit Facility | Oct-12 | 170 | 170 | Oct-16 | Floating rate | ||||||||||
Bilateral Revolving Credit Facility | Mar-13 | 100 | 100 | Mar-14 | Floating rate | ||||||||||
Bilateral Revolving Credit Facility | Mar-13 | 300 | 300 | Oct-16 | Floating rate | ||||||||||
Term Loan Facility | Mar-13 | 300 | — | Mar-16 | Floating rate | ||||||||||
Bilateral Revolving Credit Facility | Apr-13 | 200 | 200 | Apr-16 | Floating rate | ||||||||||
Total Committed and Available Credit Facilities | $ | 6,070 | $ | 5,770 | |||||||||||
VARIABLE_INTEREST_ENTITIES_Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
VARIABLE INTEREST ENTITIES [Abstract] | ||||||||
Schedule of Variable Interest Entities [Table Text Block] | ||||||||
Assets and Liabilities of Consolidated VIEs | Sep 30, | Dec 31, | ||||||
In millions | 2013 | 2012 | ||||||
Cash and cash equivalents (1) | $ | 170 | $ | 146 | ||||
Other current assets | 128 | 129 | ||||||
Property | 2,625 | 2,554 | ||||||
Other noncurrent assets | 122 | 139 | ||||||
Total assets (2) | $ | 3,045 | $ | 2,968 | ||||
Current liabilities (nonrecourse 2013: $259; 2012: $261) | $ | 605 | $ | 261 | ||||
Long-term debt (nonrecourse 2013: $1,456; 2012: $1,406) | 1,456 | 1,752 | ||||||
Other noncurrent liabilities (nonrecourse 2013: $75; 2012: $99) | 75 | 99 | ||||||
Total liabilities | $ | 2,136 | $ | 2,112 | ||||
-1 | Includes $2 million at September 30, 2013 ($2 million at December 31, 2012) specifically restricted for the construction of a manufacturing facility. | |||||||
-2 | All assets were restricted at September 30, 2013 and December 31, 2012. |
PENSION_PLANS_AND_OTHER_POSTRE1
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | ||||||||||||||||
Net Periodic Benefit Cost for All Significant Plans | Three Months Ended | Nine Months Ended | ||||||||||||||
In millions | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Defined Benefit Pension Plans: | ||||||||||||||||
Service cost | $ | 117 | $ | 95 | $ | 352 | $ | 285 | ||||||||
Interest cost | 252 | 274 | 757 | 822 | ||||||||||||
Expected return on plan assets | (311 | ) | (316 | ) | (934 | ) | (948 | ) | ||||||||
Amortization of prior service cost | 6 | 6 | 18 | 19 | ||||||||||||
Amortization of net loss | 197 | 130 | 591 | 390 | ||||||||||||
Net periodic benefit cost | $ | 261 | $ | 189 | $ | 784 | $ | 568 | ||||||||
Other Postretirement Benefits: | ||||||||||||||||
Service cost | $ | 5 | $ | 4 | $ | 15 | $ | 12 | ||||||||
Interest cost | 20 | 23 | 60 | 69 | ||||||||||||
Amortization of prior service credit | (1 | ) | (1 | ) | (3 | ) | (3 | ) | ||||||||
Net periodic benefit cost | $ | 24 | $ | 26 | $ | 72 | $ | 78 | ||||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||||||
Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block] | |||||||
Total Unrecognized Compensation Cost at September 30, 2013 | |||||||
In millions | Unrecognized | Weighted-average | |||||
Compensation | Recognition | ||||||
Cost | Period (Years) | ||||||
ESPP purchase rights | $ | 4 | 0.13 | ||||
Unvested stock options | $ | 97 | 0.87 | ||||
Deferred stock awards | $ | 112 | 0.88 | ||||
Performance deferred stock awards | $ | 28 | 0.75 | ||||
EARNINGS_PER_SHARE_CALCULATION1
EARNINGS PER SHARE CALCULATIONS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Net Income [Table Text Block] | ||||||||||||||||
Net Income for Earnings Per Share Calculations - Diluted | Three Months Ended | Nine Months Ended | ||||||||||||||
In millions | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net Income | $ | 685 | $ | 591 | $ | 3,788 | $ | 1,851 | ||||||||
Net Income attributable to noncontrolling interests | $ | (6 | ) | $ | (9 | ) | $ | (49 | ) | $ | (38 | ) | ||||
Net income attributable to The Dow Chemical Company | $ | 679 | $ | 582 | $ | 3,739 | $ | 1,813 | ||||||||
Preferred stock dividends (2) | (85 | ) | (85 | ) | — | (255 | ) | |||||||||
Net income attributable to participating securities (1) | (5 | ) | (5 | ) | (30 | ) | (15 | ) | ||||||||
Net income attributable to common stockholders | $ | 589 | $ | 492 | $ | 3,709 | $ | 1,543 | ||||||||
Net Income for Earnings Per Share Calculations - Basic | Three Months Ended | Nine Months Ended | ||||||||||||||
In millions | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income | $ | 685 | $ | 591 | $ | 3,788 | $ | 1,851 | ||||||||
Net income attributable to noncontrolling interests | (6 | ) | (9 | ) | (49 | ) | (38 | ) | ||||||||
Net income attributable to The Dow Chemical Company | $ | 679 | $ | 582 | $ | 3,739 | $ | 1,813 | ||||||||
Preferred stock dividends | (85 | ) | (85 | ) | (255 | ) | (255 | ) | ||||||||
Net income attributable to participating securities (1) | (5 | ) | (5 | ) | (30 | ) | (15 | ) | ||||||||
Net income attributable to common stockholders | $ | 589 | $ | 492 | $ | 3,454 | $ | 1,543 | ||||||||
Earnings Per Share Calculation - Basic | ||||||||||||||||
Earnings Per Share Calculations - Basic | Three Months Ended | Nine Months Ended | ||||||||||||||
Dollars per share | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income | $ | 0.58 | $ | 0.5 | $ | 3.2 | $ | 1.58 | ||||||||
Net income attributable to noncontrolling interests | (0.01 | ) | (0.01 | ) | (0.04 | ) | (0.03 | ) | ||||||||
Net income attributable to The Dow Chemical Company | $ | 0.57 | $ | 0.49 | $ | 3.16 | $ | 1.55 | ||||||||
Preferred stock dividends | (0.07 | ) | (0.07 | ) | (0.22 | ) | (0.22 | ) | ||||||||
Net income attributable to participating securities (1) | — | — | (0.02 | ) | (0.01 | ) | ||||||||||
Net income attributable to common stockholders | $ | 0.5 | $ | 0.42 | $ | 2.92 | $ | 1.32 | ||||||||
Earnings Per Share Calculation - Diluted | ||||||||||||||||
Earnings Per Share Calculations - Diluted | Three Months Ended | Nine Months Ended | ||||||||||||||
Dollars per share | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income | $ | 0.57 | $ | 0.5 | $ | 2.94 | $ | 1.57 | ||||||||
Net income attributable to noncontrolling interests | (0.01 | ) | (0.01 | ) | (0.04 | ) | (0.03 | ) | ||||||||
Net income attributable to The Dow Chemical Company | $ | 0.56 | $ | 0.49 | $ | 2.9 | $ | 1.54 | ||||||||
Preferred stock dividends (2) | (0.07 | ) | (0.07 | ) | — | (0.22 | ) | |||||||||
Net income attributable to participating securities (1) | — | — | (0.02 | ) | (0.01 | ) | ||||||||||
Net income attributable to common stockholders | $ | 0.49 | $ | 0.42 | $ | 2.88 | $ | 1.31 | ||||||||
Schedule of Weighted Average Number of Shares [Table Text Block] | ||||||||||||||||
Additional Share Count Information | Three Months Ended | Nine Months Ended | ||||||||||||||
Shares in millions | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Weighted-average common shares - basic | 1,187.40 | 1,172.70 | 1,184.90 | 1,167.80 | ||||||||||||
Plus dilutive effect of stock options and awards | 6.8 | 6.8 | 6.1 | 7.1 | ||||||||||||
Plus dilutive effect of assumed conversion of preferred stock (1) | — | — | 96.8 | — | ||||||||||||
Weighted-average common shares - diluted | 1,194.20 | 1,179.50 | 1,287.80 | 1,174.90 | ||||||||||||
Stock options and deferred stock awards excluded from EPS calculations (2) | 39.2 | 54 | 56.5 | 52.2 | ||||||||||||
-1 | Conversion of the Cumulative Convertible Perpetual Preferred Stock, Series A into shares of the Company’s common stock was excluded from the calculation of diluted earnings per share for the three-month period ended September 30, 2013 and the three- and nine-month periods ended September 30, 2012 because the effect of including them would have been antidilutive. | |||||||||||||||
-2 | These outstanding options to purchase shares of common stock and deferred stock awards were excluded from the calculation of diluted earnings per share because the effect of including them would have been antidilutive. |
INCOME_TAXES_INCOME_TAXES_Tabl
INCOME TAXES INCOME TAXES (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Income Taxes Disclosure [Abstract] | |||||||||
Summary of Income Tax Contingencies [Table Text Block] | |||||||||
Total Gross Unrecognized Tax Benefits | Sep 30, | Dec 31, | |||||||
In millions | 2013 | 2012 | |||||||
Balance at January 1 | $ | 409 | $ | 339 | |||||
Increases related to positions taken on items from prior years | 318 | 66 | |||||||
Decreases related to positions taken on items from prior years | (77 | ) | (32 | ) | |||||
Increases related to positions taken in the current year | 11 | 53 | |||||||
Settlement of uncertain tax positions with authorities | (353 | ) | (9 | ) | |||||
Decreases due to expiration of statutes of limitations | (7 | ) | (8 | ) | |||||
Balance at end of period | $ | 301 | $ | 409 | |||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Schedule of Comprehensive Income (Loss) [Table Text Block] | The following table provides an analysis of the changes in accumulated other comprehensive income (loss) for the nine months ended September 30, 2013 and 2012: | |||||||
Accumulated Other Comprehensive Income (Loss) | Nine Months Ended | |||||||
In millions | Sep 30, | Sep 30, | ||||||
2013 | 2012 | |||||||
Unrealized Gains on Investments at beginning of year | $ | 147 | $ | 78 | ||||
Net change in unrealized gains | 13 | 74 | ||||||
Reclassification to earnings - Net Sales (net of tax of $(14), $(5)) (1) | (24 | ) | (10 | ) | ||||
Reclassification to earnings - Sundry income (expense) - net (net of tax $-, $(1)) (1) | — | (1 | ) | |||||
Balance at end of period | $ | 136 | $ | 141 | ||||
Cumulative Translation Adjustments at beginning of year | 328 | 72 | ||||||
Translation adjustments | 55 | 165 | ||||||
Reclassification to earnings - Sundry income (expense) - net (2) | (21 | ) | — | |||||
Balance at end of period | $ | 362 | $ | 237 | ||||
Pension and Other Postretirement Benefit Plans at beginning of year | (7,995 | ) | (6,134 | ) | ||||
Adjustments to pension and other postretirement benefit plans (net of tax of $204, $134) (1) (3) | 432 | 279 | ||||||
Balance at end of period | $ | (7,563 | ) | $ | (5,855 | ) | ||
Accumulated Derivative Income (Loss) at beginning of year | 4 | (12 | ) | |||||
Net hedging results (4) | 2 | 1 | ||||||
Reclassification to earnings - Cost of sales (net of tax of $(5), $9) (1) (4) (5) | (11 | ) | 7 | |||||
Balance at end of period | $ | (5 | ) | $ | (4 | ) | ||
Total Accumulated Other Comprehensive Loss | $ | (7,070 | ) | $ | (5,481 | ) | ||
-1 | Tax amounts are included in "Provision for income taxes" in the consolidated statements of income. | |||||||
-2 | Reclassification resulted from the divestiture of a nonconsolidated affiliate. | |||||||
-3 | Included in "Net periodic benefit cost." See Note 12 for additional information. | |||||||
-4 | Accumulated Derivative Income (Loss) activity for 2012 was reclassified in accordance with newly implemented ASU 2013-02. | |||||||
-5 | Presentation of the tax component for 2012 was changed to conform to the current year presentation. |
OPERATING_SEGMENTS_AND_GEOGRAP1
OPERATING SEGMENTS AND GEOGRAPHIC AREAS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Schedule of Operating Segments | ||||||||||||||||
Operating Segments | Three Months Ended | Nine Months Ended | ||||||||||||||
In millions | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Sales by operating segment | ||||||||||||||||
Electronic and Functional Materials | $ | 1,168 | $ | 1,111 | $ | 3,461 | $ | 3,383 | ||||||||
Coatings and Infrastructure Solutions | 1,839 | 1,730 | 5,394 | 5,321 | ||||||||||||
Agricultural Sciences | 1,410 | 1,302 | 5,363 | 4,816 | ||||||||||||
Performance Materials | 3,307 | 3,411 | 10,024 | 10,253 | ||||||||||||
Performance Plastics | 3,616 | 3,500 | 10,790 | 10,802 | ||||||||||||
Feedstocks and Energy | 2,328 | 2,521 | 7,427 | 8,113 | ||||||||||||
Corporate | 66 | 62 | 235 | 181 | ||||||||||||
Total | $ | 13,734 | $ | 13,637 | $ | 42,694 | $ | 42,869 | ||||||||
EBITDA (1) by operating segment | ||||||||||||||||
Electronic and Functional Materials | $ | 287 | $ | 273 | $ | 814 | $ | 803 | ||||||||
Coatings and Infrastructure Solutions | 283 | 246 | 719 | 787 | ||||||||||||
Agricultural Sciences | 18 | 63 | 792 | 821 | ||||||||||||
Performance Materials | 314 | 491 | 1,038 | 1,173 | ||||||||||||
Performance Plastics | 970 | 737 | 2,932 | 2,215 | ||||||||||||
Feedstocks and Energy | 187 | 200 | 620 | 532 | ||||||||||||
Corporate | (225 | ) | (212 | ) | 1,305 | (865 | ) | |||||||||
Total | $ | 1,834 | $ | 1,798 | $ | 8,220 | $ | 5,466 | ||||||||
Equity in earnings (losses) of nonconsolidated affiliates by operating segment (included in EBITDA) | ||||||||||||||||
Electronic and Functional Materials | $ | 36 | $ | 27 | $ | 81 | $ | 81 | ||||||||
Coatings and Infrastructure Solutions | 32 | 29 | 83 | 96 | ||||||||||||
Agricultural Sciences | 3 | 3 | 6 | 3 | ||||||||||||
Performance Materials | (11 | ) | (30 | ) | (46 | ) | (67 | ) | ||||||||
Performance Plastics | 134 | 28 | 279 | 101 | ||||||||||||
Feedstocks and Energy | 135 | 123 | 399 | 300 | ||||||||||||
Corporate | (7 | ) | (5 | ) | (22 | ) | (22 | ) | ||||||||
Total | $ | 322 | $ | 175 | $ | 780 | $ | 492 | ||||||||
-1 | The Company uses EBITDA (which Dow defines as earnings (i.e., "Net Income") before interest, income taxes, depreciation and amortization) as its measure of profit/loss for segment reporting purposes. EBITDA by operating segment includes all operating items relating to the businesses, except depreciation and amortization; items that principally apply to the Company as a whole are assigned to Corporate. A reconciliation of EBITDA to "Income Before Income Taxes" is provided below. | |||||||||||||||
Reconciliation of EBITDA to Income Before Income Taxes | ||||||||||||||||
Reconciliation of EBITDA to “Income Before Income Taxes” | Three Months Ended | Nine Months Ended | ||||||||||||||
In millions | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
EBITDA | $ | 1,834 | $ | 1,798 | $ | 8,220 | $ | 5,466 | ||||||||
- Depreciation and amortization | 665 | 665 | 1,992 | 2,018 | ||||||||||||
+ Interest income | 11 | 10 | 29 | 26 | ||||||||||||
- Interest expense and amortization of debt discount | 264 | 318 | 839 | 959 | ||||||||||||
Income Before Income Taxes | $ | 916 | $ | 825 | $ | 5,418 | $ | 2,515 | ||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | ||||||||||||||||
Geographic Areas | Three Months Ended | Nine Months Ended | ||||||||||||||
In millions | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Sales by geographic area | ||||||||||||||||
United States | $ | 4,471 | $ | 4,394 | $ | 14,089 | $ | 14,029 | ||||||||
Europe, Middle East and Africa | 4,308 | 4,446 | 13,794 | 14,680 | ||||||||||||
Rest of World | 4,955 | 4,797 | 14,811 | 14,160 | ||||||||||||
Total | $ | 13,734 | $ | 13,637 | $ | 42,694 | $ | 42,869 | ||||||||
RESTRUCTURING_4Q12_Restructuri
RESTRUCTURING (4Q12 Restructuring) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
4Q12 Restructuring [Member] | 4Q12 Restructuring [Member] | 4Q12 Restructuring [Member] | 4Q12 Restructuring [Member] | 4Q12 Restructuring [Member] | 4Q12 Restructuring [Member] | 4Q12 Restructuring [Member] | 4Q12 Restructuring [Member] | 4Q12 Restructuring [Member] | 4Q12 Restructuring [Member] | 4Q12 Restructuring [Member] | 4Q12 Restructuring [Member] | 4Q12 Restructuring [Member] | 4Q12 Restructuring [Member] | 4Q12 Restructuring [Member] | |||||
Facilities | Severance Costs | Severance Costs | Severance Costs | Severance Costs | Severance Costs | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | Costs Associated with Exit or Disposal Activities | Costs Associated with Exit or Disposal Activities | Costs Associated with Exit or Disposal Activities | Costs Associated with Exit or Disposal Activities | Corporate [Member] | ||||||||
employees | employees | employees | Severance Costs | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | 2,850 | ||||||||||||||||||
Number of Manufacturing Facilities to be impaired and shutdown | 20 | ||||||||||||||||||
Restructuring charges | $0 | $0 | $0 | $357 | $990 | ||||||||||||||
Business Exit Costs | 39 | ||||||||||||||||||
Severance Costs | 375 | ||||||||||||||||||
Other Asset Impairment Charges | 576 | ||||||||||||||||||
Restructuring Reserve, Cash payments | -56 | -60 | -70 | -55 | -59 | -69 | -8 | -183 | -1 | -1 | -1 | ||||||||
Restructuring Reserve | $211 | $267 | $327 | $397 | $184 | $239 | $298 | $367 | $184 | $27 | $28 | $29 | $30 | ||||||
Restructuring number of positions to be eliminated, remaining | 1,000 | 2,767 | 1,000 |
RESTRUCTURING_1Q12_Restructuri
RESTRUCTURING (1Q12 Restructuring) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Mar. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Mar. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 30, 2012 | Sep. 30, 2013 | Mar. 30, 2012 |
1Q12 Restructuring [Member] | 1Q12 Restructuring [Member] | 1Q12 Restructuring [Member] | 1Q12 Restructuring [Member] | 1Q12 Restructuring [Member] | 1Q12 Restructuring [Member] | 1Q12 Restructuring [Member] | 1Q12 Restructuring [Member] | 1Q12 Restructuring [Member] | 1Q12 Restructuring [Member] | 1Q12 Restructuring [Member] | 1Q12 Restructuring [Member] | 1Q12 Restructuring [Member] | 1Q12 Restructuring [Member] | 1Q12 Restructuring [Member] | 1Q12 Restructuring [Member] | 1Q12 Restructuring [Member] | 1Q12 Restructuring [Member] | |||||
Costs Associated with Exit or Disposal Activities | Costs Associated with Exit or Disposal Activities | Costs Associated with Exit or Disposal Activities | Costs Associated with Exit or Disposal Activities | Costs Associated with Exit or Disposal Activities | Severance Costs | Severance Costs | Severance Costs | Severance Costs | Severance Costs | Severance Costs | Severance Costs | |||||||||||
employees | employees | employees | employees | Corporate [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | 900 | |||||||||||||||||||||
Restructuring charges | $0 | $0 | $0 | $357 | $357 | |||||||||||||||||
Business Exit Costs | 150 | |||||||||||||||||||||
Severance Costs | 113 | |||||||||||||||||||||
Other Asset Impairment Charges | 29 | 94 | ||||||||||||||||||||
Restructuring number of positions to be eliminated, remaining | 70 | 248 | 70 | |||||||||||||||||||
Restructuring Reserve | 43 | 45 | 55 | 87 | 38 | 39 | 44 | 56 | 5 | 6 | 11 | 31 | 5 | |||||||||
Restructuring Reserve, Cash payments | -2 | -9 | -24 | -1 | -4 | -4 | -1 | -5 | -20 | -82 | -26 | |||||||||||
Restructuring Reserve, Noncash settlements | -1 | -7 | -1 | -7 | 0 | 0 | ||||||||||||||||
Restructuring Reserve, Foreign currency impact | ($1) | ($1) | $0 |
INVENTORIES_Schedule_of_Invent
INVENTORIES (Schedule of Inventories) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Finished goods | $4,872 | $4,880 |
Work in process | 2,223 | 1,910 |
Raw materials | 929 | 866 |
Supplies | 868 | 820 |
Total inventories | 8,892 | 8,476 |
Inventory, LIFO Reserve | $857 | $842 |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Goodwill By Operating Segment) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Goodwill [Roll Forward] | |
Net goodwill, beginning balance | $12,739 |
Sale of a Plastics Additives product line | -3 |
Foreign currency impact | 31 |
Net goodwill, ending balance | 12,767 |
Electronic And Functional Materials [Member] | |
Goodwill [Roll Forward] | |
Net goodwill, beginning balance | 4,945 |
Sale of a Plastics Additives product line | 0 |
Foreign currency impact | 9 |
Net goodwill, ending balance | 4,954 |
Coatings and Infrastructure Solutions [Member] | |
Goodwill [Roll Forward] | |
Net goodwill, beginning balance | 4,052 |
Sale of a Plastics Additives product line | 0 |
Foreign currency impact | 13 |
Net goodwill, ending balance | 4,065 |
Agricultural Sciences [Member] | |
Goodwill [Roll Forward] | |
Net goodwill, beginning balance | 1,558 |
Sale of a Plastics Additives product line | 0 |
Foreign currency impact | 0 |
Net goodwill, ending balance | 1,558 |
Performance Materials [Member] | |
Goodwill [Roll Forward] | |
Net goodwill, beginning balance | 740 |
Sale of a Plastics Additives product line | -3 |
Foreign currency impact | 1 |
Net goodwill, ending balance | 738 |
Performance Plastics [Member] | |
Goodwill [Roll Forward] | |
Net goodwill, beginning balance | 1,381 |
Sale of a Plastics Additives product line | 0 |
Foreign currency impact | 8 |
Net goodwill, ending balance | 1,389 |
Feedstocks and Energy [Member] | |
Goodwill [Roll Forward] | |
Net goodwill, beginning balance | 63 |
Sale of a Plastics Additives product line | 0 |
Foreign currency impact | 0 |
Net goodwill, ending balance | $63 |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Other Intangible Assets) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Goodwill and Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | $7,514 | $7,433 | ||
Intangible assets gross carrying amount | 7,551 | 7,496 | ||
Other Intangible Assets, Accumulated Amortization | -3,168 | -2,785 | ||
Finite-Lived Intangible Assets, Net | 4,346 | 4,648 | ||
Other Intangible Assets, Net | 4,383 | 4,711 | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 37 | [1] | 63 | [1] |
Licenses and intellectual property [Member] | ||||
Goodwill and Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 1,771 | 1,729 | ||
Other Intangible Assets, Accumulated Amortization | -866 | -747 | ||
Finite-Lived Intangible Assets, Net | 905 | 982 | ||
Patents [Member] | ||||
Goodwill and Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 124 | 120 | ||
Other Intangible Assets, Accumulated Amortization | -106 | -100 | ||
Finite-Lived Intangible Assets, Net | 18 | 20 | ||
Software [Member] | ||||
Goodwill and Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 1,145 | 1,047 | ||
Other Intangible Assets, Accumulated Amortization | -597 | -548 | ||
Finite-Lived Intangible Assets, Net | 548 | 499 | ||
Trademarks [Member] | ||||
Goodwill and Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 686 | 691 | ||
Other Intangible Assets, Accumulated Amortization | -329 | -285 | ||
Finite-Lived Intangible Assets, Net | 357 | 406 | ||
Customer related [Member] | ||||
Goodwill and Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 3,630 | 3,688 | ||
Other Intangible Assets, Accumulated Amortization | -1,129 | -974 | ||
Finite-Lived Intangible Assets, Net | 2,501 | 2,714 | ||
Other Intangible Assets [Member] | ||||
Goodwill and Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 158 | 158 | ||
Other Intangible Assets, Accumulated Amortization | -141 | -131 | ||
Finite-Lived Intangible Assets, Net | $17 | $27 | ||
[1] | In-process research and development (“IPR&Dâ€) purchased in a business combination. |
GOODWILL_AND_OTHER_INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Amortization Expense of Intangible Assets) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense, other intangible assets, excluding software | $114 | $117 | $344 | $361 |
Amortization expense, software, included in 'Cost of sales' | $15 | $15 | $48 | $46 |
GOODWILL_AND_OTHER_INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Future Amortization Expense of Intangible Assets) (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Estimated Amortization Expense, 2013 | $527 |
Estimated Amortization Expense, 2014 | 512 |
Estimated Amortization Expense, 2015 | 494 |
Estimated Amortization Expense, 2016 | 482 |
Estimated Amortization Expense, 2017 | 448 |
Estimated Amortization Expense, 2018 | $431 |
FINANCIAL_INSTRUMENTS_Investme
FINANCIAL INSTRUMENTS (Investments) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Financial Instruments [Abstact] | |||||
Investing Results, Proceeds from sales of available-for-sale securities | $409 | $401 | |||
Investing Results, Gross realized gains | 63 | 30 | |||
Investing Results, Gross realized losses | -12 | -10 | |||
Contractual Maturities of Debt Securities, Within one year, Amortized Cost | 35 | 35 | |||
Contractual Maturities of Debt Securities, One to five years, Amortized Cost | 468 | 468 | |||
Contractual Maturities of Debt Securities, Six to ten years, Amortized Cost | 552 | 552 | |||
Contractual Maturities of Debt Securities, After ten years, Amortized Cost | 142 | 142 | |||
Contractual Maturities of Debt Securities, Total, Amortized Cost | 1,197 | 1,197 | |||
Contractual Maturities of Debt Securities, Within one year, Fair Value | 35 | 35 | |||
Contractual Maturities of Debt Securities, One to five years, Fair Value | 505 | 505 | |||
Contractual Maturities of Debt Securities, Six to ten years, Fair Value | 567 | 567 | |||
Contractual Maturities of Debt Securities, After ten years, Fair Value | 160 | 160 | |||
Contractual Maturities of Debt Securities, Total, Fair Value | 1,267 | 1,267 | |||
Held-to-maturity securities | 1,625 | 1,625 | 1,701 | ||
Investments in money market funds | 463 | 463 | 252 | ||
Net unrealized loss recognized on trading securities | ($1) | $1 | ($11) | $3 |
FINANCIAL_INSTRUMENTS_Fair_Val
FINANCIAL INSTRUMENTS (Fair Value and Gross Unrealized Losses of the Company's Investments) (Details) (USD $) | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | ||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | ($1) | ||||
Temporarily Impaired Securities, Less than 12 Months, Fair Value | 434 | [1] | 52 | [1] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months | 18 | [1] | 3 | [1] | |
Other than temporary impairment write-downs on investments still held | 2 | 5 | |||
Cost method investments, aggregate cost | 184 | 176 | |||
Cost method investments, reduction in cost basis due to impairment | 4 | 3 | |||
US Treasury and Government [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Temporarily Impaired Securities, Less than 12 Months, Fair Value | 100 | [1] | 0 | [1] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months | 5 | [1] | 0 | [1] | |
Debt Securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Temporarily Impaired Securities, Less than 12 Months, Fair Value | 265 | [1] | 22 | [1] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months | 10 | [1] | 1 | [1] | |
Corporate Bonds - Investment Grade [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Temporarily Impaired Securities, Less than 12 Months, Fair Value | 165 | [1] | 22 | [1] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months | 5 | [1] | 1 | [1] | |
Equity Securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Temporarily Impaired Securities, Less than 12 Months, Fair Value | 169 | [1] | 30 | [1] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months | $8 | [1] | $2 | [1] | |
[1] | (1)Unrealized losses of 12 months or more were less than $1Â million |
FINANCIAL_INSTRUMENTS_Fair_Val1
FINANCIAL INSTRUMENTS (Fair Value of Financial Instruments) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||
Financial Instruments [Line Items] | ||||||||
Trading Securities, Change in Unrealized Holding Gain (Loss) | ($1) | $1 | ($11) | $3 | ||||
Fair Value Adjustments | 22 | 22 | 23 | |||||
Long-term Debt [Member] | ||||||||
Financial Instruments [Line Items] | ||||||||
Financial Instruments, Cost | -18,167 | [1] | -18,167 | [1] | -20,591 | [1] | ||
Financial Instruments, Gross Unrealized Gain | 257 | [1] | 257 | [1] | 24 | [1] | ||
Financial Instruments, Gross Unrealized Loss | -2,113 | [1] | -2,113 | [1] | -3,195 | [1] | ||
Financial Instruments, Fair Value | -20,023 | [1] | -20,023 | [1] | -23,762 | [1] | ||
Interest Rate Contract [Member] | ||||||||
Financial Instruments [Line Items] | ||||||||
Financial Instruments, Cost | 0 | 0 | 0 | |||||
Financial Instruments, Gross Unrealized Gain | 1 | 1 | 1 | |||||
Financial Instruments, Gross Unrealized Loss | -4 | -4 | -6 | |||||
Financial Instruments, Fair Value | -3 | -3 | -5 | |||||
Commodity Contract [Member] | ||||||||
Financial Instruments [Line Items] | ||||||||
Financial Instruments, Cost | 0 | [2] | 0 | [2] | 0 | [2] | ||
Financial Instruments, Gross Unrealized Gain | 13 | [2] | 13 | [2] | 26 | [2] | ||
Financial Instruments, Gross Unrealized Loss | -11 | [2] | -11 | [2] | -7 | [2] | ||
Financial Instruments, Fair Value | 2 | [2] | 2 | [2] | 19 | [2] | ||
Foreign Currency Contract [Member] | ||||||||
Financial Instruments [Line Items] | ||||||||
Financial Instruments, Cost | 0 | 0 | 0 | |||||
Financial Instruments, Gross Unrealized Gain | 67 | 67 | 34 | |||||
Financial Instruments, Gross Unrealized Loss | -27 | -27 | -20 | |||||
Financial Instruments, Fair Value | 40 | 40 | 14 | |||||
Marketable Securities [Member] | ||||||||
Financial Instruments [Line Items] | ||||||||
Financial Instruments, Cost | 1,789 | [3] | 1,789 | [3] | 1,816 | [3] | ||
Financial Instruments, Gross Unrealized Gain | 234 | [3] | 234 | [3] | 249 | [3] | ||
Financial Instruments, Gross Unrealized Loss | -19 | [3] | -19 | [3] | -4 | [3] | ||
Financial Instruments, Fair Value | 2,004 | [3] | 2,004 | [3] | 2,061 | [3] | ||
Debt Securities [Member] | ||||||||
Financial Instruments [Line Items] | ||||||||
Financial Instruments, Cost | 1,197 | [3] | 1,197 | [3] | 1,182 | [3] | ||
Financial Instruments, Gross Unrealized Gain | 81 | [3] | 81 | [3] | 140 | [3] | ||
Financial Instruments, Gross Unrealized Loss | -11 | [3] | -11 | [3] | -1 | [3] | ||
Financial Instruments, Fair Value | 1,267 | [3] | 1,267 | [3] | 1,321 | [3] | ||
Corporate Bond Securities [Member] | ||||||||
Financial Instruments [Line Items] | ||||||||
Financial Instruments, Cost | 665 | [3] | 665 | [3] | 676 | [3] | ||
Financial Instruments, Gross Unrealized Gain | 47 | [3] | 47 | [3] | 81 | [3] | ||
Financial Instruments, Gross Unrealized Loss | -6 | [3] | -6 | [3] | -1 | [3] | ||
Financial Instruments, Fair Value | 706 | [3] | 706 | [3] | 756 | [3] | ||
Government Bonds [Member] | ||||||||
Financial Instruments [Line Items] | ||||||||
Financial Instruments, Cost | 532 | [3],[4] | 532 | [3],[4] | 506 | [3],[4] | ||
Financial Instruments, Gross Unrealized Gain | 34 | [3],[4] | 34 | [3],[4] | 59 | [3],[4] | ||
Financial Instruments, Gross Unrealized Loss | -5 | [3],[4] | -5 | [3],[4] | 0 | [3],[4] | ||
Financial Instruments, Fair Value | 561 | [3],[4] | 561 | [3],[4] | 565 | [3],[4] | ||
Equity Securities [Member] | ||||||||
Financial Instruments [Line Items] | ||||||||
Financial Instruments, Cost | 592 | [3] | 592 | [3] | 634 | [3] | ||
Financial Instruments, Gross Unrealized Gain | 153 | [3] | 153 | [3] | 109 | [3] | ||
Financial Instruments, Gross Unrealized Loss | -8 | [3] | -8 | [3] | -3 | [3] | ||
Financial Instruments, Fair Value | $737 | [3] | $737 | [3] | $740 | [3] | ||
[1] | (3)Cost includes fair value adjustments of $22 million at September 30, 2013 and $23 million at December 31, 2012. | |||||||
[2] | (4)Presented net of cash collateral, as disclosed in Note 7. | |||||||
[3] | (1)Included in “Other investments†in the consolidated balance sheets. | |||||||
[4] | (2)U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. |
FINANCIAL_INSTRUMENTS_Accounti
FINANCIAL INSTRUMENTS (Accounting for Derivative Instruments and Hedging Activities) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | Commodity swaps futures and option contracts [Member] | Commodity Contract [Member] | Commodity Contract [Member] | Commodity Forward Contract Corn [Member] | Commodity Forward Contract Corn [Member] | Commodity Forward Contract Crude Oil [Member] | Commodity Forward Contract Crude Oil [Member] | Commodity Contract Ethane [Member] | Commodity Contract Ethane [Member] | Commodity Contract Naphtha [Member] | Commodity Contract Naphtha [Member] | Commodity Forward Contract Natural Gas [Member] | Commodity Forward Contract Natural Gas [Member] | Commodity Contract Natural Gas [Member] | Commodity Contract Natural Gas [Member] | Commodity Contract Propane [Member] | Commodity Contract Propane [Member] | Commodity Forward Contract Soybeans [Member] | Commodity Forward Contract Soybeans [Member] | Foreign Currency Contract [Member] | Foreign Currency Contract [Member] | Interest Rate Contract [Member] | Interest Rate Contract [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | Foreign Currency Denominated Debt [Member] | Foreign Currency Denominated Debt [Member] | Foreign Currency Derivative [Member] | Interest Rate Derivative [Member] | Interest Rate Derivative [Member] | ||
bu | bu | MMBbls | MMBbls | MMBbls | MMBbls | T | T | MMBTU | MMBTU | MMBTU | MMBTU | T | T | bu | bu | Commodity Contract [Member] | Foreign Currency Contract [Member] | Interest Rate Contract [Member] | |||||||||||||||
Financial Instruments [Line Items] | |||||||||||||||||||||||||||||||||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | ($3) | ||||||||||||||||||||||||||||||||
Derivative, Notional Amount | 536 | 15,305 | 17,637 | 0 | 472 | 366 | 528 | 433 | |||||||||||||||||||||||||
Derivative, Higher Remaining Maturity Range | 36 months | ||||||||||||||||||||||||||||||||
Nonmonetary Notional Amount of Price Risk Cash Flow Hedge Derivatives, Measurement | 4,900,000 | 1,900,000 | 1.5 | 0.4 | 1.8 | 1.8 | 2,000 | 90,000 | 113.2 | 186 | 1,600,000 | 1,300,000 | |||||||||||||||||||||
Price Risk Cash Flow Hedge Unrealized Gain (Loss) to be Reclassified During Next 12 Months | 10 | ||||||||||||||||||||||||||||||||
AOCI, Net gain (loss) in cash flow hedging instruments | 8 | 24 | -8 | -14 | -2 | -3 | |||||||||||||||||||||||||||
AOCI, Net gain (loss) in net investment in foreign operations, after tax | 18 | 22 | |||||||||||||||||||||||||||||||
Derivative, nonmonetary notional amount | 0.4 | 1 | 69,000 | 0 | 9.2 | 33 | 0 | 0 | |||||||||||||||||||||||||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | ($8) | ||||||||||||||||||||||||||||||||
Nonderivative Instruments Notional | 204 | 233 |
FINANCIAL_INSTRUMENTS_Schedule
FINANCIAL INSTRUMENTS (Schedule of Fair Values of Derivative Instruments) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | $118 | $87 |
Derivative liability, fair value | 85 | 74 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 21 | 32 |
Derivative liability, fair value | 35 | 40 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 97 | 55 |
Derivative liability, fair value | 50 | 34 |
Accounts and Notes Receivable - Other [Member] | Designated as Hedging Instrument [Member] | Foreign Currency Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 4 | 3 |
Accounts and Notes Receivable - Other [Member] | Not Designated as Hedging Instrument [Member] | Foreign Currency Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 96 | 52 |
Other Current Assets [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 1 | 1 |
Other Current Assets [Member] | Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 16 | 28 |
Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 1 | 3 |
Accounts Payable - Other [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 4 | 5 |
Accounts Payable - Other [Member] | Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 19 | 21 |
Accounts Payable - Other [Member] | Designated as Hedging Instrument [Member] | Foreign Currency Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 12 | 14 |
Accounts Payable - Other [Member] | Not Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 0 | 1 |
Accounts Payable - Other [Member] | Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 2 | 6 |
Accounts Payable - Other [Member] | Not Designated as Hedging Instrument [Member] | Foreign Currency Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | $48 | $27 |
FAIR_VALUE_MEASUREMENTS_Basis_
FAIR VALUE MEASUREMENTS (Basis of Fair Value Measurements on a Recurring Basis) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Collateral Already Posted, Aggregate Fair Value | $28 | $20 | ||
Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | [1] | 0 | [1] |
Carrying value of interests held | 0 | [2] | 0 | [2] |
Interest Rate Derivative Assets, at Fair Value | 0 | [3] | 0 | [3] |
Commodities | 5 | [3] | 9 | [3] |
Foreign currency | 0 | [3] | 0 | [3] |
Assets, Fair Value Disclosure | 707 | 711 | ||
Long-term Debt, Fair Value | 0 | [4] | 0 | [4] |
Interest Rate Derivative Liabilities, at Fair Value | 0 | [3] | 0 | [3] |
Commodities | 9 | [3] | 16 | [3] |
Foreign currency | 0 | [3] | 0 | [3] |
Liabilities, Fair Value Disclosure | 9 | 16 | ||
Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 702 | [5] | 702 | [5] |
Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | US Treasury and Government [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | [5],[6] | 0 | [5],[6] |
Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | [5] | 0 | [5] |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 2,088 | [1] | 1,953 | [1] |
Carrying value of interests held | 0 | [2] | 0 | [2] |
Interest Rate Derivative Assets, at Fair Value | 1 | [3] | 1 | [3] |
Commodities | 12 | [3] | 22 | [3] |
Foreign currency | 100 | [3] | 55 | [3] |
Assets, Fair Value Disclosure | 3,503 | 3,390 | ||
Long-term Debt, Fair Value | 20,023 | [4] | 23,762 | [4] |
Interest Rate Derivative Liabilities, at Fair Value | 4 | [3] | 6 | [3] |
Commodities | 12 | [3] | 11 | [3] |
Foreign currency | 60 | [3] | 41 | [3] |
Liabilities, Fair Value Disclosure | 20,099 | 23,820 | ||
Significant Other Observable Inputs (Level 2) [Member] | Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 35 | [5] | 38 | [5] |
Significant Other Observable Inputs (Level 2) [Member] | US Treasury and Government [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 561 | [5],[6] | 565 | [5],[6] |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 706 | [5] | 756 | [5] |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | [1] | 0 | [1] |
Carrying value of interests held | 1,363 | [2] | 1,057 | [2] |
Interest Rate Derivative Assets, at Fair Value | 0 | [3] | 0 | [3] |
Commodities | 0 | [3] | 0 | [3] |
Foreign currency | 0 | [3] | 0 | [3] |
Assets, Fair Value Disclosure | 1,363 | 1,057 | ||
Long-term Debt, Fair Value | 0 | [4] | 0 | [4] |
Interest Rate Derivative Liabilities, at Fair Value | 0 | [3] | 0 | [3] |
Commodities | 0 | [3] | 0 | [3] |
Foreign currency | 0 | [3] | 0 | [3] |
Liabilities, Fair Value Disclosure | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | [5] | 0 | [5] |
Significant Unobservable Inputs (Level 3) [Member] | US Treasury and Government [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | [5],[6] | 0 | [5],[6] |
Significant Unobservable Inputs (Level 3) [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | [5] | 0 | [5] |
Netting and Collateral [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | [1],[7] | 0 | [1],[7] |
Carrying value of interests held | 0 | [2],[7] | 0 | [2],[7] |
Interest Rate Derivative Assets, at Fair Value | 0 | [3],[7] | 0 | [3],[7] |
Commodities | -4 | [3],[7] | -5 | [3],[7] |
Foreign currency | -33 | [3],[7] | -21 | [3],[7] |
Assets, Fair Value Disclosure | -37 | [7] | -26 | [7] |
Long-term Debt, Fair Value | 0 | [4],[7] | 0 | [4],[7] |
Interest Rate Derivative Liabilities, at Fair Value | 0 | [3],[7] | 0 | [3],[7] |
Commodities | -10 | [3],[7] | -20 | [3],[7] |
Foreign currency | -33 | [3],[7] | -21 | [3],[7] |
Liabilities, Fair Value Disclosure | -43 | [7] | -41 | [7] |
Netting and Collateral [Member] | Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | [5],[7] | 0 | [5],[7] |
Netting and Collateral [Member] | US Treasury and Government [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | [5],[6],[7] | 0 | [5],[6],[7] |
Netting and Collateral [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | [5],[7] | 0 | [5],[7] |
Total Fair Value [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 2,088 | [1] | 1,953 | [1] |
Carrying value of interests held | 1,363 | [2] | 1,057 | [2] |
Interest Rate Derivative Assets, at Fair Value | 1 | [3] | 1 | [3] |
Commodities | 13 | [3] | 26 | [3] |
Foreign currency | 67 | [3] | 34 | [3] |
Assets, Fair Value Disclosure | 5,536 | 5,132 | ||
Long-term Debt, Fair Value | 20,023 | [4] | 23,762 | [4] |
Interest Rate Derivative Liabilities, at Fair Value | 4 | [3] | 6 | [3] |
Commodities | 11 | [3] | 7 | [3] |
Foreign currency | 27 | [3] | 20 | [3] |
Liabilities, Fair Value Disclosure | 20,065 | 23,795 | ||
Total Fair Value [Member] | Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 737 | [5] | 740 | [5] |
Total Fair Value [Member] | US Treasury and Government [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 561 | [5],[6] | 565 | [5],[6] |
Total Fair Value [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | $706 | [5] | $756 | [5] |
[1] | Primarily Treasury Bills included in "Cash and cash equivalents" in the consolidated balance sheets and held at amortized cost, which approximates fair value. | |||
[2] | Included in “Accounts and notes receivable – Other†in the consolidated balance sheets. See Note 9 for additional information on transfers of financial assets. | |||
[3] | See Note 6 for the classification of derivatives in the consolidated balance sheets. | |||
[4] | See Note 6 for information on fair value adjustments to long-term debt, included at cost in the consolidated balance sheets. | |||
[5] | The Company’s investments in equity and debt securities are primarily classified as available-for-sale and are included in “Other investments†in the consolidated balance sheets. | |||
[6] | U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. | |||
[7] | 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_Additi
FAIR VALUE MEASUREMENTS (Additional Information) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
In Millions, unless otherwise specified | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||
Balance at beginning of period, fair value measurements using Level 3 inputs | $1,291 | [1] | $1,220 | [1] | $1,057 | [1] | $1,141 | [1] | ||
Loss included in earnings, fair value measurements using Level 3 inputs | -1 | [1],[2] | -2 | [1],[2] | -3 | [1],[2] | -4 | [1],[2] | ||
Purchases, fair value measurements using Level 3 inputs | 325 | [1] | 343 | [1] | 997 | [1] | 2,396 | [1] | ||
Settlements, fair value measurements using Level 3 inputs | -252 | [1] | -218 | [1] | -688 | [1] | -2,190 | [1] | ||
Balance at end of period, fair value measurements using Level 3 inputs | 1,363 | [1] | 1,343 | [1] | 1,363 | [1] | 1,343 | [1] | ||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $4 | $0 | ||||||||
[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. |
FAIR_VALUE_MEASUREMENTS_Basis_1
FAIR VALUE MEASUREMENTS (Basis of Fair Value Measurements on a Nonrecurring Basis) (Details) (USD $) | 9 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Mar. 30, 2012 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | 1Q12 Restructuring [Member] | 1Q12 Restructuring [Member] | |
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-Lived Assets, Other Assets and Equity method Investments, Fair Value Disclosure | $10 | |||
Other Asset Impairment Charges | ($123) | ($29) | ($94) |
COMMITMENTS_AND_CONTINGENT_LIA2
COMMITMENTS AND CONTINGENT LIABILITIES (Dow Corning Credit Facility) (Narrative) (Details) (USD $) | Sep. 30, 2013 | Jun. 01, 2013 | Jun. 02, 2004 | Jun. 01, 2013 |
In Millions, unless otherwise specified | Corporate Joint Venture [Member] | Corporate Joint Venture [Member] | Credit Facility Provided To Joint Venture Reporting Entity Share [Member] | |
Corporate Joint Venture [Member] | ||||
Loss Contingencies [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 50.00% | |||
Joint Plan credit facility | $6,070 | $50 | $300 | $25 |
COMMITMENTS_AND_CONTINGENT_LIA3
COMMITMENTS AND CONTINGENT LIABILITIES (Environmental Matters) (Narrative) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | $748 | $754 |
Number of of Proprerties Remediated, City of Midland | 86 | |
Total Number of Properties to be Remediated, City of Midland | 98 | |
Accrual For Environmental Loss Contingencies Superfund Sites [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | 76 | 69 |
Accrual For Environmental Loss Contingencies Midland Offsite Matters [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | $51 | $42 |
COMMITMENTS_AND_CONTINGENT_LIA4
COMMITMENTS AND CONTINGENT LIABILITIES (Asbestos-Related Matters of Union Carbide Corporation) (Table and Narrative) (Details) (Union Carbide [Member], USD $) | 3 Months Ended | 9 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2002 |
Loss Contingencies [Line Items] | |||||||
Liability for asbestos claims, gross | $555 | $555 | $602 | $668 | $2,200 | ||
Percentage of recorded asbestos liability related to pending claims | 19.00% | 19.00% | 18.00% | ||||
Percentage of recorded asbestos liability related to future claims | 81.00% | 81.00% | 82.00% | ||||
Estimated insurance recoveries | 165 | 165 | 179 | 1,350 | |||
Defense and resolution costs for asbestos related claims | 26 | 25 | 77 | 73 | |||
Estimated Insurance Recoveries Carriers Without Settlement Agreements [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Estimated insurance recoveries | 25 | 25 | 25 | ||||
Estimated Insurance Recoveries Defense Costs [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Estimated insurance recoveries | 16 | 16 | 17 | ||||
Estimated Insurance Recoveries Resolution Costs [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Estimated insurance recoveries | $124 | $124 | $137 |
COMMITMENTS_AND_CONTINGENT_LIA5
COMMITMENTS AND CONTINGENT LIABILITIES (Synthetic Rubber Industry Matters) (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 1 Months Ended | ||
Nov. 30, 2006 | Nov. 30, 2006 | Dec. 31, 2006 | Dec. 31, 2007 | Dec. 31, 2007 | |
Fine Issued for Butadiene Rubber and Emulsion Styrene Butadiene Rubber Business [Member] | Fine Issued for Butadiene Rubber and Emulsion Styrene Butadiene Rubber Business [Member] | Synthetic Rubber Industry Matters [Member] | Fine Issued Polychloroprene Business [Member] | Fine Issued Polychloroprene Business [Member] | |
USD ($) | EUR (€) | USD ($) | USD ($) | EUR (€) | |
Loss Contingencies [Line Items] | |||||
Fine issued in connection with alleged violation of competition laws | $85,000,000 | € 64,575,000 | $66,000,000 | € 48,675,000 | |
Loss contingency | $85,000,000 |
COMMITMENTS_AND_CONTINGENT_LIA6
COMMITMENTS AND CONTINGENT LIABILITIES COMMITMENTS AND CONTINGENT LIABILITIES (Urethane Matters) (Narrative) (Details) (Urethane Antitrust Litigation [Domain], USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2013 | Jun. 30, 2013 | Sep. 30, 2013 |
February 20, 2013 Urethane Matters Ruling [Member] | May 15, 2013 Urethane Matters Ruling [Member] | July 26, 2013 Urethane Matters Ruling [Member] | |
Loss Contingencies [Line Items] | |||
Loss Contingency, Damages Awarded, Value | $400 | $1,200 | $1,060 |
COMMITMENTS_AND_CONTINGENT_LIA7
COMMITMENTS AND CONTINGENT LIABILITIES (Purchase Commitments) (Table and Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Ethylene related products [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Purchase commitments, with ranged from 1 to 6 years | $304 | $552 | $714 |
Fixed and determinable portion of obligations under purchase commitments, 2013 | 2,570 | ||
Fixed and determinable portion of obligations under purchase commitments, 2014 | 2,607 | ||
Fixed and determinable portion of obligations under purchase commitments, 2015 | 2,141 | ||
Fixed and determinable portion of obligations under purchase commitments, 2016 | 1,904 | ||
Fixed and determinable portion of obligations under purchase commitments, 2017 | 1,712 | ||
Fixed and determinable portion of obligations under purchase commitments, 2018 and beyond | 8,106 | ||
Fixed and determinable portion of obligations under purchase commitments, total | 19,040 | ||
Materials Services and Other Items [Member] | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Other outstanding purchase commitments | $201 |
COMMITMENTS_AND_CONTINGENT_LIA8
COMMITMENTS AND CONTINGENT LIABILITIES (Guarantees) (Table and Narrative) (Details) | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |||
Guarantees [Member] | Guarantees [Member] | Residual Value Guarantees [Member] | Residual Value Guarantees [Member] | Total Guarantees [Member] | Total Guarantees [Member] | Guarantees subject to indemnification from third parties [Member] | Sadara [Member] | Long Term Debt entered into by Equity Method Investee [Domain] | Long Term Debt entered into by Equity Method Investee [Domain] | Long Term Debt entered into by Equity Method Investee [Domain] | Long Term Debt entered into by Equity Method Investee [Domain] | Long Term Debt entered into by Equity Method Investee [Domain] | Guarantee of Indebtedness of Others [Member] | |||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Sukuk [Member] | Sukuk [Member] | Financing [Domain] | Total Project Financing [Member] | Construction Loans [Member] | Sadara [Member] | ||||||
Sadara [Member] | Sadara [Member] | Sadara [Member] | Sadara [Member] | Sadara [Member] | USD ($) | |||||||||||||
USD ($) | SAR | USD ($) | USD ($) | USD ($) | ||||||||||||||
Guarantor Obligations [Line Items] | ||||||||||||||||||
Final expiration | 2021 | 2021 | 2021 | 2021 | ||||||||||||||
Guarantor obligations, maximum future payments | $4,845,000,000 | $1,544,000,000 | [1] | $685,000,000 | $637,000,000 | [1],[2] | $5,530,000,000 | $2,181,000,000 | [1] | $98,000,000 | $4,400,000,000 | |||||||
Guarantor obligations, recorded liability | 96,000,000 | 48,000,000 | 28,000,000 | 31,000,000 | [2] | 124,000,000 | 79,000,000 | |||||||||||
Indemnified amount if required to perform under a guarantee | 49,000,000 | |||||||||||||||||
Islamic Bond - Noncurrent | 2,000,000,000 | 7,500,000,000 | ||||||||||||||||
Project Financing, Maximum Borrowing Capacity | 10,500,000,000 | 12,500,000,000 | ||||||||||||||||
Amount Drawn, Total Project Financing | $4,700,000,000 | |||||||||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | 35.00% | ||||||||||||||||
[1] | The Company was indemnified by a third party for $49 million if required to perform under a $98 million guarantee. | |||||||||||||||||
[2] | Does not include the residual value guarantee related to the Company's variable interest in an owner trust; see Note 11. |
COMMITMENTS_AND_CONTINGENT_LIA9
COMMITMENTS AND CONTINGENT LIABILITIES (Asset Retirement Obligations) (Narrative) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Asset retirement obligation | $86 | $92 |
Asset retirement obligation discount rate | 0.87% | 0.87% |
Recovered_Sheet1
COMMITMENTS AND CONTINGENT LIABILITIES COMMITMENTS AND CONTINGENT LIABILITIES (K-Dow) (Narrative) (Details) (USD $) | Jun. 30, 2013 | 7-May-13 | 24-May-12 | Feb. 28, 2013 | Jun. 30, 2013 | Jun. 30, 2013 |
In Millions, unless otherwise specified | K-Dow Matter [Member] | K-Dow Matter [Member] | Partial Award [Member] | Final Interest and Costs Awarded [Member] | Corporate [Member] | Corporate [Member] |
Positive Outcome of Litigation [Member] | Positive Outcome of Litigation [Member] | Positive Outcome of Litigation [Member] | Impact to Sundry income (expense) [Member] | Cost of Sales [Member] | ||
K-Dow Matter [Member] | K-Dow Matter [Member] | |||||
Positive Outcome of Litigation [Member] | Positive Outcome of Litigation [Member] | |||||
Gain Contingencies [Line Items] | ||||||
Gain Contingency, Unrecorded Amount | $2,161 | $318 | ||||
Gain Contingency Cash Settlement | 2,195 | |||||
Former Gain Contingency, Recognized in Current Period | $2,195 | $2,161 | $34 |
TRANSFERS_OF_FINANCIAL_ASSETS_1
TRANSFERS OF FINANCIAL ASSETS (Sale of Trade Accounts Receivable in North America and Europe) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jan. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||
Tranfers of Financial Assets [Line Items] | ||||||||
Interests in conduits | $688,000,000 | $2,190,000,000 | ||||||
North America and Europe [Member] | ||||||||
Tranfers of Financial Assets [Line Items] | ||||||||
Carrying value of interests held | 1,363,000,000 | 1,363,000,000 | 1,057,000,000 | |||||
North America and Europe [Member] | Trade Accounts Receivable [Member] | ||||||||
Tranfers of Financial Assets [Line Items] | ||||||||
Gain (Loss) on sale of transferred financial assets | -4,000,000 | -5,000,000 | -13,000,000 | -14,000,000 | ||||
Percentage of Anticipated Credit Losses | 0.76% | 0.73% | ||||||
Impact to carrying value, 10 percent adverse change | 1,000,000 | 1,000,000 | 1,000,000 | |||||
Impact to carrying value, 20 percent adverse change | 3,000,000 | 3,000,000 | 2,000,000 | |||||
Sale of receivables | 0 | 0 | 19,000,000 | 57,000,000 | ||||
Collections reinvested in revolving receivables | 6,489,000,000 | 6,432,000,000 | 19,229,000,000 | 19,489,000,000 | ||||
Interests in conduits | 252,000,000 | 218,000,000 | 688,000,000 | [1] | 2,190,000,000 | [1] | ||
Delinquencies on sold receivables still outstanding | 129,000,000 | 129,000,000 | 164,000,000 | |||||
Trade accounts receivable outstanding and derecognized | 2,654,000,000 | 2,654,000,000 | 2,294,000,000 | |||||
Cash Flows Between Transferor and Transferee, Purchases of Previously Transferred Financial Assets | $8,000,000 | |||||||
[1] | Presented in "Operating Activities" in the consolidated statements of cash flows. |
TRANSFERS_OF_FINANCIAL_ASSETS_2
TRANSFERS OF FINANCIAL ASSETS (Sale of Trade Accounts Receivable in Asia Pacific) (Details) (Asia Pacific [Member], USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Tranfers of Financial Assets [Line Items] | |||||
Sale of participating interests | $13,000,000 | $16,000,000 | $39,000,000 | $48,000,000 | |
Collections reinvested in revolving receivables | 13,000,000 | 13,000,000 | 35,000,000 | 42,000,000 | |
Trade accounts receivable derecognized | 9,000,000 | 9,000,000 | 13,000,000 | ||
Outstanding in the consolidated balance sheet | 182,000,000 | 182,000,000 | 283,000,000 | ||
Total accounts receivable in select Asia Pacific entities | 191,000,000 | 191,000,000 | 296,000,000 | ||
Trade Accounts Receivable [Member] | |||||
Tranfers of Financial Assets [Line Items] | |||||
Credit losses on receivables relating to participating interests sold during the year | 0 | 0 | 0 | 0 | |
Delinquencies on sold receivables still outstanding | $0 | $0 | $0 |
NOTES_PAYABLE_LONGTERM_DEBT_AN2
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES (Schedule of Notes Payable) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Long Term Debt Repayment - Variable Interest Entity [Member] [Domain] | ||
Notes Payable Long Term Debt and Available Credit Facilities [Line Items] | |||
Repayments of Debt | $66 | ||
Notes payable to banks | 353 | 319 | |
Notes payable to related companies | 90 | 66 | |
Notes payable trade | 9 | 11 | |
Notes payable | $452 | $396 | |
Period-end average interest rates | 2.82% | 3.14% |
NOTES_PAYABLE_LONGTERM_DEBT_AN3
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES (Schedule of Long-Term Debt) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ||
Unamortized debt discount | ($380) | ($403) |
Long-term debt due within one year | -680 | -672 |
Long-term debt (nonrecourse 2013: $1,456; 2012: $1,406) | 17,487 | 19,919 |
Annual Installments on Long Term Debt for Next Five Years at the current period end [Abstract] | ||
Annual Installments on Long Term Debt, 2013 | 69 | |
Annual Installments on Long Term Debt, 2014 | 697 | |
Annual Installments on Long Term Debt, 2015 | 466 | |
Annual Installments on Long Term Debt, 2016 | 1,367 | |
Annual Installments on Long Term Debt, 2017 | 1,192 | |
Annual Installments on Long Term Debt, 2018 | 1,169 | |
Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt (nonrecourse 2013: $1,456; 2012: $1,406) | 45 | 21 |
Final maturity 2013 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt (nonrecourse 2013: $1,456; 2012: $1,406) | 3 | 404 |
Average interest rate in period | 9.80% | 6.01% |
Final Maturity 2014 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt (nonrecourse 2013: $1,456; 2012: $1,406) | 397 | 1,138 |
Average interest rate in period | 5.36% | 6.86% |
Final Maturity 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt (nonrecourse 2013: $1,456; 2012: $1,406) | 53 | 1,290 |
Average interest rate in period | 2.95% | 5.82% |
Final maturity 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt (nonrecourse 2013: $1,456; 2012: $1,406) | 803 | 789 |
Average interest rate in period | 2.53% | 2.54% |
Final Maturity 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt (nonrecourse 2013: $1,456; 2012: $1,406) | 902 | 890 |
Average interest rate in period | 5.82% | 5.88% |
Final maturity 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt (nonrecourse 2013: $1,456; 2012: $1,406) | 853 | 840 |
Average interest rate in period | 5.53% | 5.59% |
Final maturity 2019 and thereafter [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt (nonrecourse 2013: $1,456; 2012: $1,406) | 12,177 | 12,148 |
Average interest rate in period | 5.95% | 5.96% |
U.S. Dollar loans, Various Rates and Maturities [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt (nonrecourse 2013: $1,456; 2012: $1,406) | 579 | 288 |
Average interest rate in period | 1.52% | 2.30% |
Foreign Currency Loans, Various Rates and Maturities [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt (nonrecourse 2013: $1,456; 2012: $1,406) | 1,233 | 1,336 |
Average interest rate in period | 3.40% | 3.50% |
Medium-term Notes, Varying Maturities Through 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt (nonrecourse 2013: $1,456; 2012: $1,406) | 984 | 1,132 |
Average interest rate in period | 3.81% | 4.26% |
Pollution Control/Industrial Revenue Bonds, Varying Maturities Through 2038 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt (nonrecourse 2013: $1,456; 2012: $1,406) | $518 | $718 |
Average interest rate in period | 5.59% | 5.67% |
NOTES_PAYABLE_LONGTERM_DEBT_AN4
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES (Narrative) (Details) | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 2 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jan. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Mar. 08, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Aug. 15, 2013 | Sep. 30, 2013 |
USD ($) | USD ($) | $200 Million Revolving Credit Facility Due 10/2016 [Domain] | $100 Million Revolving Credit Facility Due 10/2016 [Domain] | Revolving Credit Facility Agreement [Member] | Long-term Debt [Member] | Long-term Debt [Member] | Long-term Debt [Member] | Long-term Debt [Member] | Pollution control industrial revenue bonds [Member] | Long Term Debt entered into by Variable Interest Entities [Member] | Inter Notes [Member] | Redemption of Notes [Member] | Redemption of Notes [Member] | Redemption of Notes [Member] | Redemption of Notes [Member] | Redemption of Notes [Member] | |
USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Four point eight five percent notes due August 15, 2012 [Member] | Four point eight five percent notes due August 15, 2012 [Member] | Five point six percents due March 15, 2013 [Member] | Six point eight five percent notes due August 15 2013 [Member] | Six point eight five percent notes due August 15 2013 [Member] | |||
USD ($) | USD ($) | USD ($) | |||||||||||||||
Notes Payable Long Term Debt and Available Credit Facilities [Line Items] | |||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $6,070 | $200 | $100 | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.85% | 5.60% | 6.85% | ||||||||||||||
Extinguishment of Debt, Amount | 1,250 | 138 | |||||||||||||||
Proceeds from issuance of long-term debt | 749 | 532 | 286 | 210 | 307 | ||||||||||||
Repayments of Notes Payable | 253 | 317 | 37 | 82 | 250 | ||||||||||||
Debt instrument covenant, ratio of indebtedness to net capital, maximum | 0.65 | ||||||||||||||||
Amount of debt, if exceeded, causes company to comply with capitalization ratios | 500 | ||||||||||||||||
Amount at which a failure to pay results in default | 100 | ||||||||||||||||
Permitted amount of acceleration of principal which causes default | 400 | ||||||||||||||||
Amount of judgment which causes default | $400 |
NOTES_PAYABLE_LONGTERM_DEBT_AN5
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES (Extinguishment of Debt) (Details) | 9 Months Ended | 3 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 2 Months Ended | 3 Months Ended | |||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Mar. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Sep. 15, 2013 | Jun. 28, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Mar. 25, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 08, 2012 | Sep. 30, 2012 | Jun. 24, 2013 | Jun. 28, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Apr. 05, 2013 |
USD ($) | USD ($) | Corporate [Member] | Corporate [Member] | Redemption of Notes [Member] | Pollution control industrial revenue bonds tax-exempt [Member] | Redemption of InterNotes [Member] | Redemption of InterNotes [Member] | Redemption of InterNotes [Member] | Redemption of InterNotes [Member] | Redemption of Notes [Member] | Redemption of Notes [Member] | Seven point six percent notes due May 15 2014 [Member] | Seven point six percent notes due May 15 2014 [Member] | Long-term Debt [Member] | Long-term Debt [Member] | Long-term Debt [Member] | Long-term Debt [Member] | Long Term Debt entered into by Variable Interest Entities [Member] | Long Term Debt entered into by Variable Interest Entities [Member] | Five point six percents due March 15, 2013 [Member] | Inter Notes [Member] | Four point eight five percent notes due August 15, 2012 [Member] | Four point eight five percent notes due August 15, 2012 [Member] | Five point nine percent notes due February 15 2015 [Member] | Five point nine percent notes due February 15 2015 [Member] | Five point nine percent notes due February 15 2015 [Member] | $200 Million Revolving Credit Facility Due 4/2016 [Domain] | $200M Revolving Credit Facility due 4/2016 [Domain] | Term Loan Facility [Domain] | Term Loan Facility [Domain] | |
USD ($) | USD ($) | Corporate [Member] | USD ($) | USD ($) | USD ($) | Corporate [Member] | Corporate [Member] | Pollution control industrial revenue bonds tax-exempt [Member] | Pollution control industrial revenue bonds tax-exempt [Member] | Redemption of Notes [Member] | Redemption of Notes [Member] | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Redemption of Notes [Member] | USD ($) | Redemption of Notes [Member] | Redemption of Notes [Member] | Redemption of Notes [Member] | Redemption of Notes [Member] | Redemption of Notes [Member] | USD ($) | USD ($) | USD ($) | USD ($) | |||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||||||||||
Extinguishment of Debt [Line Items] | |||||||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $6,070 | $200 | $300 | ||||||||||||||||||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 5,770 | 200 | 0 | ||||||||||||||||||||||||||||
Repayments of Notes Payable | 200 | 105 | 253 | 317 | 250 | 82 | |||||||||||||||||||||||||
Parked Tax-Exempt Municipal Bonds | 126 | ||||||||||||||||||||||||||||||
Extinguishment of Debt, Amount | 209 | 142 | 750 | 1,250 | 1,250 | ||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.60% | 5.60% | 4.85% | 5.90% | |||||||||||||||||||||||||||
Redemption price of the principle debt amount | 107.80% | 101.80% | 108.40% | ||||||||||||||||||||||||||||
Loss on early extinguishment of debt | 173 | 24 | 60 | 24 | 108 | 2 | 3 | ||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 749 | 532 | 286 | 210 | 307 | ||||||||||||||||||||||||||
Proceeds from (Repayments of) Debt | 86 | ||||||||||||||||||||||||||||||
Long-term Line of Credit, Noncurrent | $300 |
NOTES_PAYABLE_LONGTERM_DEBT_AN6
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES (Schedule of Committed and Available Credit Facilities) (Details) (USD $) | Sep. 30, 2013 | Apr. 05, 2013 |
In Millions, unless otherwise specified | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $6,070 | |
Line of Credit Facility, Remaining Borrowing Capacity | 5,770 | |
Five Year Competitive Advance and Revolving Credit Facility Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 5,000 | |
Line of Credit Facility, Remaining Borrowing Capacity | 5,000 | |
$170M Revolving Credit Facility Due 10/2016 [Domain] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 170 | |
Line of Credit Facility, Remaining Borrowing Capacity | 170 | |
$100M Revolving Credit Facility Due 3/2014 [Domain] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 100 | |
Line of Credit Facility, Remaining Borrowing Capacity | 100 | |
$300M Revolving Credit Facility Due 10/2016 [Domain] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 300 | |
Line of Credit Facility, Remaining Borrowing Capacity | 300 | |
Term Loan Facility [Domain] | ||
Line of Credit Facility [Line Items] | ||
Long-term Line of Credit, Noncurrent | 300 | |
Line of Credit Facility, Maximum Borrowing Capacity | 300 | |
Line of Credit Facility, Remaining Borrowing Capacity | 0 | |
$200M Revolving Credit Facility due 4/2016 [Domain] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Remaining Borrowing Capacity | 200 | |
$200 Million Revolving Credit Facility Due 4/2016 [Domain] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $200 |
VARIABLE_INTEREST_ENTITIES_Sch
VARIABLE INTEREST ENTITIES (Schedule of Consolidated Variable Interest Entities, Carrying Amounts of Assets and Liabilities) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 30, 2011 | Mar. 02, 2012 | Feb. 02, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | jointventures | Variable Interest Entity, Primary Beneficiary [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Variable Interest Entity that produces ethanol from sugarcane [Member] | Variable Interest Entity that produces ethanol from sugarcane [Member] | Variable Interest in Midwest US Ag Joint Venture [Member] | Netherlands Owner Trust [Member] | Netherlands Owner Trust [Member] | Variable Interest Entities Used to Monetize Accounts Receivable [Member] | Variable Interest Entities Used to Monetize Accounts Receivable [Member] | Restricted For Construction Of Manufacturing Facility [Member] | Restricted For Construction Of Manufacturing Facility [Member] | |||||
Variable Interest Entity, Primary Beneficiary [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||||||||||||
Number of variable interest entities for which the Company is a primary beneficiary | 8 | ||||||||||||||||
Sale of Stock, Percentage of Ownership before Transaction | 100.00% | ||||||||||||||||
Sale of Stock, Percentage of Ownership after Transaction | 50.00% | ||||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 49.00% | ||||||||||||||||
Variable Interest Entity Lease Expiration Purchase Amount | $406 | ||||||||||||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 363 | ||||||||||||||||
Cash and cash equivalents | 5,272 | 4,318 | 3,885 | 5,444 | 170 | [1] | 146 | [1] | 2 | 2 | |||||||
Other current assets | 318 | 334 | 128 | 129 | |||||||||||||
Property | 17,360 | 17,520 | 2,625 | 2,554 | |||||||||||||
Other noncurrent assets | 516 | 464 | 122 | 139 | |||||||||||||
Total Assets | 70,206 | 69,605 | 3,045 | [2] | 2,968 | [2] | |||||||||||
Current liabilities (nonrecourse 2013: $259; 2012: $261) | 11,993 | 11,493 | 605 | 261 | 0 | 1 | |||||||||||
Long-term debt (nonrecourse 2013: $1,456; 2012: $1,406) | 17,487 | 19,919 | 1,456 | 1,752 | |||||||||||||
Other noncurrent liabilities (nonrecourse 2013: $75; 2012: $99) | 3,266 | 3,353 | 75 | 99 | |||||||||||||
Total liabilities | 2,136 | 2,112 | |||||||||||||||
Current assets | 25,009 | 23,684 | 109 | 179 | |||||||||||||
Nonrecourse Liabilities Current | 0 | 1 | 259 | 261 | |||||||||||||
Nonrecourse Liabilities Noncurrent | 1,456 | 1,406 | 1,456 | 1,406 | |||||||||||||
Other Nonrecourse Liabilities Noncurrent | $75 | $99 | |||||||||||||||
[1] | Includes $2 million at September 30, 2013 ($2 million at December 31, 2012) specifically restricted for the construction of a manufacturing facility. | ||||||||||||||||
[2] | All assets were restricted at September 30, 2013 and December 31, 2012. |
VARIABLE_INTEREST_ENTITIES_Non
VARIABLE INTEREST ENTITIES (Nonconsolidated Variable Interest Entity) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ||
Assets, Current | $25,009 | $23,684 |
Investment in nonconsolidated affiliates | 4,244 | 4,121 |
Variable Interest Entities Used to Monetize Accounts Receivable [Member] | ||
Variable Interest Entity [Line Items] | ||
Assets, Current | 109 | 179 |
Variable Interest Entity, Not Primary Beneficiary [Member] | Acrylic Acid Joint Venture [Member] | ||
Variable Interest Entity [Line Items] | ||
Investment in nonconsolidated affiliates | 148 | 161 |
Restricted Current Assets [Member] | Variable Interest Entities Used to Monetize Accounts Receivable [Member] | ||
Variable Interest Entity [Line Items] | ||
Assets, Current | $0 | $0 |
PENSION_PLANS_AND_OTHER_POSTRE2
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Defined Benefit Pension Plans [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Service cost | $117 | $95 | $352 | $285 |
Interest cost | 252 | 274 | 757 | 822 |
Expected return on plan assets | -311 | -316 | -934 | -948 |
Amortization of prior service cost | 6 | 6 | 18 | 19 |
Amortization of net loss | 197 | 130 | 591 | 390 |
Net periodic benefit cost | 261 | 189 | 784 | 568 |
Other Postretirement Benefits [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Service cost | 5 | 4 | 15 | 12 |
Interest cost | 20 | 23 | 60 | 69 |
Amortization of prior service cost | -1 | -1 | -3 | -3 |
Net periodic benefit cost | $24 | $26 | $72 | $78 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 9 Months Ended | 3 Months Ended | |||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Jun. 30, 2013 |
Employees' Stock Purchase Plan [Member] | Equity Option [Member] | Deferred Stock Awards [Member] | Performance Deferred Stock Awards [Member] | Employee [Member] | Employee [Member] | Employee [Member] | Employee [Member] | Director [Member] | |
years | years | years | years | Employees' Stock Purchase Plan [Member] | Equity Option [Member] | Deferred Stock Awards [Member] | Performance Deferred Stock Awards [Member] | Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 10.00% | ||||||||
Share based compensation arrangement by share based payment award discount from market price offering date company specific | 85.00% | ||||||||
Right to purchase shares subscribed by employees | 8,300,000 | ||||||||
Weighted-average exercise price right to purchase shares by employees | $27.05 | ||||||||
Weighted-average fair value of shares under the Employee Stock Purchase Plan | $7.20 | ||||||||
Stock options granted to employees under the 1988 plan | 17,100,000 | ||||||||
Weighted-average exercise price options granted under the 1988 plan | $32.16 | ||||||||
Weighted-average fair value per share of purchase rights granted | $6.99 | ||||||||
Deferred stock granted to employees | 3,600,000 | 1,300,000 | |||||||
Weighted-average fair value of deferred stock granted under the 1988 plan | $32.16 | $34.41 | $34.46 | ||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 35,280 | ||||||||
Unrecognized Compensation Cost | $4 | $97 | $112 | $28 | |||||
Weighted-average Recognition Period, in years | 0.13 | 0.87 | 0.88 | 0.75 |
EARNINGS_PER_SHARE_CALCULATION2
EARNINGS PER SHARE CALCULATIONS (Net Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Earnings Per Share [Abstract] | ||||||||
Net Income | $685 | $591 | $3,788 | $1,851 | ||||
Net income attributable to noncontrolling interests | -6 | -9 | -49 | -38 | ||||
Net Income Attributable to The Dow Chemical Company | 679 | 582 | 3,739 | 1,813 | ||||
Preferred stock dividends | -85 | -85 | [1] | -255 | -255 | [1] | ||
Net income attributable to participating securities | -5 | [2] | -5 | [2] | -30 | [2] | -15 | [2] |
Net income attributable to common stockholders | $589 | $492 | $3,454 | $1,543 | ||||
[1] | Preferred stock dividends were not added back in the calculation of diluted earnings per share for the three-month period ended September 30, 2013 and the three- and nine-month periods ended September 30, 2012 because the effect of adding them back would have been antidilutive. | |||||||
[2] | Accounting Standards Codification Topic 260, "Earnings per Share," requires enterprises with participating securities to use the two-class method to calculate earnings per share and to report the most dilutive earnings per share amount. Deferred stock awards are considered participating securities due to Dow's practice of paying dividend equivalents on unvested shares. |
EARNINGS_PER_SHARE_CALCULATION3
EARNINGS PER SHARE CALCULATIONS (Earnings Per Share Calculation - Basic) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||||
Earnings Per Share [Abstract] | ||||||||
Net income, basic | $0.58 | $0.50 | $3.20 | $1.58 | ||||
Net income attributable to noncontrolling interests, basic | ($0.01) | ($0.01) | ($0.04) | ($0.03) | ||||
Net income attributable to The Dow Chemical Company, basic | $0.57 | $0.49 | $3.16 | $1.55 | ||||
Preferred stock dividends, basic | ($0.07) | ($0.07) | ($0.22) | ($0.22) | ||||
Net income attributable to participating securities, basic | $0 | [1] | $0 | [1] | ($0.02) | [1] | ($0.01) | [1] |
Net income attributable to common stockholders, basic | $0.50 | $0.42 | $2.92 | $1.32 | ||||
[1] | Accounting Standards Codification Topic 260, "Earnings per Share," requires enterprises with participating securities to use the two-class method to calculate earnings per share and to report the most dilutive earnings per share amount. Deferred stock awards are considered participating securities due to Dow's practice of paying dividend equivalents on unvested shares. |
EARNINGS_PER_SHARE_CALCULATION4
EARNINGS PER SHARE CALCULATIONS (Earnings Per Share Calculation - Diluted) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Net income attributable to common stockholders | $589 | $492 | $3,709 | $1,543 | ||||
Net Income | 685 | 591 | 3,788 | 1,851 | ||||
Net income attributable to noncontrolling interests | 6 | 9 | 49 | 38 | ||||
Net Income (Loss) Attributable to Parent | 679 | 582 | 3,739 | 1,813 | ||||
Preferred stock dividends | -85 | -85 | [1] | -255 | -255 | [1] | ||
Antidilutive Dividends, Preferred Stock | 0 | [1] | ||||||
Participating Securities, Distributed and Undistributed Earnings | 5 | [2] | 5 | [2] | 30 | [2] | 15 | [2] |
Net income, diluted | $0.57 | $0.50 | $2.94 | $1.57 | ||||
Net income attributable to noncontrolling interests, diluted | ($0.01) | ($0.01) | ($0.04) | ($0.03) | ||||
Net income attributable to The Dow Chemical Company, diluted | $0.56 | $0.49 | $2.90 | $1.54 | ||||
Preferred stock dividends, diluted | ($0.07) | [1] | ($0.07) | [1] | $0 | [1] | ($0.22) | [1] |
Net income attributable to participating securities, diluted | $0 | [2] | $0 | [2] | ($0.02) | [2] | ($0.01) | [2] |
Net income attributable to common stockholders, Diluted | $589 | $492 | $3,709 | $1,543 | ||||
[1] | Preferred stock dividends were not added back in the calculation of diluted earnings per share for the three-month period ended September 30, 2013 and the three- and nine-month periods ended September 30, 2012 because the effect of adding them back would have been antidilutive. | |||||||
[2] | Accounting Standards Codification Topic 260, "Earnings per Share," requires enterprises with participating securities to use the two-class method to calculate earnings per share and to report the most dilutive earnings per share amount. Deferred stock awards are considered participating securities due to Dow's practice of paying dividend equivalents on unvested shares. |
EARNINGS_PER_SHARE_CALCULATION5
EARNINGS PER SHARE CALCULATIONS (Reconciliation of Shares) (Details) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Earnings Per Share Disclosure [Line Items] | ||||||||
Weighted-average common shares - basic | 1,187.40 | 1,172.70 | 1,184.90 | 1,167.80 | ||||
Plus dilutive effect of stock options and awards | 6.8 | 6.8 | 6.1 | 7.1 | ||||
Incremental Common Shares Attributable to Conversion of Preferred Stock | 0 | [1] | 0 | [1] | 96.8 | [1] | 0 | [1] |
Weighted-average common shares outstanding - diluted | 1,194.20 | 1,179.50 | 1,287.80 | 1,174.90 | ||||
Employee Stock Option [Member] | ||||||||
Earnings Per Share Disclosure [Line Items] | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 39.2 | [2] | 54 | [2] | 56.5 | [2] | 52.2 | [2] |
[1] | Conversion of the Cumulative Convertible Perpetual Preferred Stock, Series A into shares of the Company’s common stock was excluded from the calculation of diluted earnings per share for the three-month period ended September 30, 2013 and the three- and nine-month periods ended September 30, 2012 because the effect of including them would have been antidilutive. | |||||||
[2] | These outstanding options to purchase shares of common stock and deferred stock awards were excluded from the calculation of diluted earnings per share because the effect of including them would have been antidilutive. |
INCOME_TAXES_INCOME_TAXES_Deta
INCOME TAXES INCOME TAXES (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2013 |
Provision (credit) for income taxes [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Tax Charge related to adjusted uncertain tax positions | $223 | ||||||
Unrecognized Tax Benefits | 301 | 301 | 409 | 339 | |||
Unrecognized Tax Benefits, Increases Resulting from Prior Period Tax Positions | 318 | 66 | |||||
Unrecognized Tax Benefits, Decreases Resulting from Prior Period Tax Positions | -77 | -32 | |||||
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions | 11 | 53 | |||||
Unrecognized Tax Benefits, Decreases Resulting from Settlements with Taxing Authorities | -353 | -9 | |||||
Unrecognized Tax Benefits, Reductions Resulting from Lapse of Applicable Statute of Limitations | -7 | -8 | |||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 293 | 293 | 392 | ||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | -16 | -2 | -167 | 85 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $42 | $42 | $131 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | Accumulated Unrealized Gains (Loss) on Investments [Member] | Accumulated Unrealized Gains (Loss) on Investments [Member] | Accumulated Unrealized Gains (Loss) on Investments [Member] | Accumulated Unrealized Gains (Loss) on Investments [Member] | Accumulated Translation Adjustments [Member] | Accumulated Translation Adjustments [Member] | Accumulated Translation Adjustments [Member] | Accumulated Translation Adjustments [Member] | Accumulated Pension and Other Postretirement Benefit Plans Adjustments [Member] | Accumulated Pension and Other Postretirement Benefit Plans Adjustments [Member] | Accumulated Pension and Other Postretirement Benefit Plans Adjustments [Member] | Accumulated Pension and Other Postretirement Benefit Plans Adjustments [Member] | Accumulated Derivative Gain (Loss) [Member] | Accumulated Derivative Gain (Loss) [Member] | Accumulated Derivative Gain (Loss) [Member] | Accumulated Derivative Gain (Loss) [Member] | Sales [Member] | Sales [Member] | Sundry Income [Member] | Sundry Income [Member] | Impact to Sundry income (expense) [Member] | Impact to Sundry income (expense) [Member] | ||||||||||||||
Accumulated Unrealized Gains (Loss) on Investments [Member] | Accumulated Unrealized Gains (Loss) on Investments [Member] | Accumulated Unrealized Gains (Loss) on Investments [Member] | Accumulated Unrealized Gains (Loss) on Investments [Member] | ||||||||||||||||||||||||||||||||||||
Net change in unrealized gains (losses) | $20 | $31 | ($11) | $63 | $13 | $74 | |||||||||||||||||||||||||||||||||
Reclassification to earnings (1) | -24 | [1] | -10 | [1] | 0 | [1] | -1 | [1] | |||||||||||||||||||||||||||||||
Translation adjustments | 303 | 339 | 34 | 165 | 55 | 165 | |||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | -21 | 0 | |||||||||||||||||||||||||||||||||||||
Adjustments to pension and other postretirement benefit plans (net of tax of $204, $134) (1) (3) | 149 | 97 | 432 | 279 | 432 | [1],[2] | 279 | [1],[2] | |||||||||||||||||||||||||||||||
Net hedging results | 2 | [3] | 1 | [3] | |||||||||||||||||||||||||||||||||||
Reclassification to earnings - Cost of sales (net of tax of $(5), $9) (1) (4) (5) | -11 | [1] | 7 | [1],[3],[4] | |||||||||||||||||||||||||||||||||||
Stockholders' Equity Attributable to Parent | 24,005 | 24,005 | 20,877 | -7,070 | -7,516 | -5,481 | -5,996 | 136 | 141 | 147 | 78 | 362 | 237 | 328 | 72 | -7,563 | -5,855 | -7,995 | -6,134 | -5 | -4 | 4 | -12 | ||||||||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax | -14 | [1] | -5 | [1] | 0 | [1] | -1 | [1] | |||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax | -204 | [1] | -134 | [1] | |||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Tax | ($5) | [1] | $9 | [1],[3],[4] | |||||||||||||||||||||||||||||||||||
[1] | Tax amounts are included in "Provision for income taxes" in the consolidated statements of income. | ||||||||||||||||||||||||||||||||||||||
[2] | Included in "Net periodic benefit cost." See Note 12 for additional information. | ||||||||||||||||||||||||||||||||||||||
[3] | Accumulated Derivative Income (Loss) activity for 2012 was reclassified in accordance with newly implemented ASU 2013-02. | ||||||||||||||||||||||||||||||||||||||
[4] | Presentation of the tax component for 2012 was changed to conform to the current year presentation. |
OPERATING_SEGMENTS_AND_GEOGRAP2
OPERATING SEGMENTS AND GEOGRAPHIC AREAS (Schedule of Operating Segments) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Segment Reporting Information [Line Items] | ||||||||
Sales to external customers | $13,734 | $13,637 | $42,694 | $42,869 | ||||
Earnings before interest, taxes, depreciation and amortization | 1,834 | [1] | 1,798 | [1] | 8,220 | [1] | 5,466 | [1] |
Equity in earnings of nonconsolidated affiliates | 322 | 175 | 780 | 492 | ||||
Electronic And Functional Materials [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Sales to external customers | 1,168 | 1,111 | 3,461 | 3,383 | ||||
Earnings before interest, taxes, depreciation and amortization | 287 | [1] | 273 | [1] | 814 | [1] | 803 | [1] |
Equity in earnings of nonconsolidated affiliates | 36 | 27 | 81 | 81 | ||||
Coatings and Infrastructure Solutions [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Sales to external customers | 1,839 | 1,730 | 5,394 | 5,321 | ||||
Earnings before interest, taxes, depreciation and amortization | 283 | [1] | 246 | [1] | 719 | [1] | 787 | [1] |
Equity in earnings of nonconsolidated affiliates | 32 | 29 | 83 | 96 | ||||
Agricultural Sciences [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Sales to external customers | 1,410 | 1,302 | 5,363 | 4,816 | ||||
Earnings before interest, taxes, depreciation and amortization | 18 | [1] | 63 | [1] | 792 | [1] | 821 | [1] |
Equity in earnings of nonconsolidated affiliates | 3 | 3 | 6 | 3 | ||||
Performance Materials [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Sales to external customers | 3,307 | 3,411 | 10,024 | 10,253 | ||||
Earnings before interest, taxes, depreciation and amortization | 314 | [1] | 491 | [1] | 1,038 | [1] | 1,173 | [1] |
Equity in earnings of nonconsolidated affiliates | -11 | -30 | -46 | -67 | ||||
Performance Plastics [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Number Of Countries With Customers Of Company | 100 | 100 | ||||||
Sales to external customers | 3,616 | 3,500 | 10,790 | 10,802 | ||||
Earnings before interest, taxes, depreciation and amortization | 970 | [1] | 737 | [1] | 2,932 | [1] | 2,215 | [1] |
Equity in earnings of nonconsolidated affiliates | 134 | 28 | 279 | 101 | ||||
Feedstocks and Energy [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Sales to external customers | 2,328 | 2,521 | 7,427 | 8,113 | ||||
Earnings before interest, taxes, depreciation and amortization | 187 | [1] | 200 | [1] | 620 | [1] | 532 | [1] |
Equity in earnings of nonconsolidated affiliates | 135 | 123 | 399 | 300 | ||||
Corporate [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Sales to external customers | 66 | 62 | 235 | 181 | ||||
Earnings before interest, taxes, depreciation and amortization | -225 | [1] | -212 | [1] | 1,305 | [1] | -865 | [1] |
Equity in earnings of nonconsolidated affiliates | ($7) | ($5) | ($22) | ($22) | ||||
[1] | The Company uses EBITDA (which Dow defines as earnings (i.e., "Net Income") before interest, income taxes, depreciation and amortization) as its measure of profit/loss for segment reporting purposes. EBITDA by operating segment includes all operating items relating to the businesses, except depreciation and amortization; items that principally apply to the Company as a whole are assigned to Corporate. A reconciliation of EBITDA to "Income Before Income Taxes" is provided below. |
OPERATING_SEGMENTS_AND_GEOGRAP3
OPERATING SEGMENTS AND GEOGRAPHIC AREAS (Reconciliation of EBITDA to Income Before Income Taxes) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Reconciliation of EBITDA to Income Before Income Taxes [Abstract] | ||||||||
Earnings before interest, taxes, depreciation and amortization | $1,834 | [1] | $1,798 | [1] | $8,220 | [1] | $5,466 | [1] |
Minus depreciation and amortization | 665 | 665 | 1,992 | 2,018 | ||||
Plus interest income | 11 | 10 | 29 | 26 | ||||
Minus interest expense and amortization of debt discount | 264 | 318 | 839 | 959 | ||||
Income Before Income Taxes | $916 | $825 | $5,418 | $2,515 | ||||
[1] | The Company uses EBITDA (which Dow defines as earnings (i.e., "Net Income") before interest, income taxes, depreciation and amortization) as its measure of profit/loss for segment reporting purposes. EBITDA by operating segment includes all operating items relating to the businesses, except depreciation and amortization; items that principally apply to the Company as a whole are assigned to Corporate. A reconciliation of EBITDA to "Income Before Income Taxes" is provided below. |
OPERATING_SEGMENTS_AND_GEOGRAP4
OPERATING SEGMENTS AND GEOGRAPHIC AREAS (Schedule of Revenue by Geographic Area) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Sales by operating segment [Line Items] | ||||
Net Sales | $13,734 | $13,637 | $42,694 | $42,869 |
United States [Member] | ||||
Sales by operating segment [Line Items] | ||||
Net Sales | 4,471 | 4,394 | 14,089 | 14,029 |
Europe, Middle East and Africa [Domain] | ||||
Sales by operating segment [Line Items] | ||||
Net Sales | 4,308 | 4,446 | 13,794 | 14,680 |
Rest of World [Domain] | ||||
Sales by operating segment [Line Items] | ||||
Net Sales | $4,955 | $4,797 | $14,811 | $14,160 |
SUBSEQUENT_EVENT_SUBSEQUENT_EV1
SUBSEQUENT EVENT SUBSEQUENT EVENT (Details) (Polypropylene Licensing and Catalyst Busines [Member], USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Polypropylene Licensing and Catalyst Busines [Member] | |
Subsequent Event [Line Items] | |
Sales Price of Divestiture | $500 |