Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Jan. 31, 2015 | Jun. 30, 2014 |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | DOW CHEMICAL CO /DE/ | ||
Entity Central Index Key | 29915 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 1,157,695,055 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $61.40 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Net Sales | $58,167 | [1] | $57,080 | [1] | $56,786 | [1] |
Cost of sales | 47,464 | 47,594 | 47,792 | |||
Research and development expenses | 1,647 | 1,747 | 1,708 | |||
Selling, general and administrative expenses | 3,106 | 3,024 | 2,861 | |||
Amortization of intangibles | 436 | [2] | 461 | [2] | 478 | [2] |
Goodwill and other intangible asset impairment losses | 50 | [3] | 0 | 220 | [3] | |
Restructuring charges (credits) | -3 | [4] | -22 | [4] | 1,343 | [4] |
Asbestos-related charge | 78 | [5] | 0 | 0 | ||
Equity in earnings of nonconsolidated affiliates | 835 | 1,034 | 536 | |||
Sundry income (expense) - net | -27 | 2,554 | -27 | |||
Interest income | 51 | 41 | 41 | |||
Interest expense and amortization of debt discount | 983 | 1,101 | 1,269 | |||
Income Before Income Taxes | 5,265 | 6,804 | 1,665 | |||
Provision for income taxes | 1,426 | 1,988 | 565 | |||
Net Income | 3,839 | 4,816 | 1,100 | |||
Net income (loss) attributable to noncontrolling interests | 67 | 29 | -82 | |||
Net Income Attributable to The Dow Chemical Company | 3,772 | 4,787 | 1,182 | |||
Preferred stock dividends | 340 | [6] | 340 | 340 | [6] | |
Net Income Available for The Dow Chemical Company Common Stockholders | $3,432 | $4,447 | $842 | |||
Per Common Share Data: | ||||||
Earnings per common share - basic (in dollars per share) | $2.91 | $3.72 | $0.71 | |||
Earnings per common share - diluted (in dollars per share) | $2.87 | $3.68 | $0.70 | |||
Common stock dividends declared per share of common stock | $1.53 | $1.28 | $1.21 | |||
Weighted-average common shares outstanding - basic | 1,170.90 | 1,186.20 | 1,169.70 | |||
Weighted-average common shares outstanding - diluted | 1,187 | 1,290.40 | 1,176.40 | |||
[1] | The Indian subcontinent, previously reported with Rest of World, is now aligned with Europe, Middle East, Africa and India; prior period sales and long-lived assets have been adjusted to reflect this realignment. | |||||
[2] | Includes a $3 million asset impairment charge related to intangible assets in 2013. | |||||
[3] | See Note 11 for information regarding intangible asset impairment losses and Note 9 for information regarding the goodwill impairment loss. | |||||
[4] | See Note 3 for information regarding restructuring charges and credits. | |||||
[5] | See Note 14 for information regarding the asbestos-related charge. | |||||
[6] | Preferred stock dividends were not added back in the calculation of diluted earnings per share for the periods ended December 31, 2014 and December 31, 2012 because the effect of adding them back would have been antidilutive. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net Income | $3,839 | $4,816 | $1,100 |
Other Comprehensive Income (Loss), Net of Tax | |||
Net change in unrealized gains on investments | -19 | 13 | 69 |
Translation adjustments | -1,227 | 148 | 256 |
Adjustments to pension and other postretirement benefit plans | -1,861 | 2,535 | -1,861 |
Net gains (losses) on cash flow hedging derivative instruments | -83 | -7 | 16 |
Total other comprehensive income (loss) | -3,190 | 2,689 | -1,520 |
Comprehensive Income (Loss) | 649 | 7,505 | -420 |
Comprehensive income (loss) attributable to noncontrolling interests, net of tax | 35 | 29 | -82 |
Comprehensive Income (Loss) Attributable to The Dow Chemical Company | $614 | $7,476 | ($338) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents (variable interest entities restricted - 2014: $190; 2013: $147) | $5,654 | $5,940 |
Accounts and notes receivable: | ||
Trade (net of allowance for doubtful receivables - 2014: $110; 2013: $148) | 4,685 | 4,935 |
Other | 4,687 | 4,712 |
Inventories | 8,101 | 8,303 |
Deferred income tax assets - current | 812 | 743 |
Other current assets | 328 | 344 |
Total current assets | 24,267 | 24,977 |
Investments | ||
Investment in nonconsolidated affiliates | 4,201 | 4,501 |
Other investments (investments carried at fair value - 2014: $2,009; 2013: $2,056) | 2,439 | 2,541 |
Noncurrent receivables | 620 | 365 |
Total investments | 7,260 | 7,407 |
Property | ||
Property | 55,230 | 55,114 |
Less accumulated depreciation | 37,179 | 37,660 |
Net property (variable interest entities restricted - 2014: $2,726; 2013: $2,646) | 18,051 | 17,454 |
Other Assets | ||
Goodwill | 12,632 | 12,798 |
Other intangible assets (net of accumulated amortization - 2014: $3,737; 2013: $3,270) | 3,768 | 4,314 |
Deferred income tax assets - noncurrent | 2,135 | 1,964 |
Asbestos-related insurance receivables - noncurrent | 62 | 86 |
Deferred charges and other assets | 621 | 501 |
Total other assets | 19,218 | 19,663 |
Total Assets | 68,796 | 69,501 |
Current Liabilities | ||
Notes payable | 551 | 443 |
Long-term debt due within one year | 394 | 697 |
Accounts payable: | ||
Trade | 4,481 | 4,590 |
Other | 2,299 | 2,290 |
Income taxes payable | 361 | 435 |
Deferred income tax liabilities - current | 105 | 133 |
Dividends payable | 563 | 467 |
Accrued and other current liabilities | 2,839 | 2,916 |
Total current liabilities | 11,593 | 11,971 |
Long-Term Debt (variable interest entities nonrecourse - 2014: $1,229; 2013: $1,360) | 18,838 | 16,820 |
Other Noncurrent Liabilities | ||
Deferred income tax liabilities - noncurrent | 622 | 718 |
Pension and other postretirement benefits - noncurrent | 10,459 | 8,176 |
Asbestos-related liabilities - noncurrent | 438 | 434 |
Other noncurrent obligations | 3,290 | 3,302 |
Total other noncurrent liabilities | 14,809 | 12,630 |
Redeemable Noncontrolling Interest | 202 | 156 |
Stockholders' Equity | ||
Preferred stock, series A ($1.00 par, $1,000 liquidation preference, 4,000,000 shares) | 4,000 | 4,000 |
Common stock (authorized 1,500,000,000 shares of $2.50 par value each;issued 2014: 1,242,763,276 shares; 2013: 1,221,557,253 shares) | 3,107 | 3,054 |
Additional paid-in capital | 4,846 | 3,928 |
Retained earnings | 23,045 | 21,407 |
Accumulated other comprehensive loss | -8,017 | -4,827 |
Unearned ESOP shares | -325 | -357 |
Treasury stock at cost (2014: 85,168,571 shares; 2013: 8,152,030 shares) | -4,233 | -307 |
The Dow Chemical Company's stockholders' equity | 22,423 | 26,898 |
Non-redeemable noncontrolling interests | 931 | 1,026 |
Total equity | 23,354 | 27,924 |
Total Liabilities and Equity | $68,796 | $69,501 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents (variable interest entities restricted) | $190 | $147 |
Accounts and notes receivable: | ||
Trade (allowance for doubtful receivables) | 110 | 148 |
Investments | ||
Other investments (investments carried at fair value) | 2,009 | 2,056 |
Property | ||
Net property (variable interest entities restricted) | 2,726 | 2,646 |
Other Assets | ||
Other intangible assets (accumulated amortization) | 3,737 | 3,270 |
Liabilities and Equity | ||
Long-Term Debt (variable interest entities non-recourse) | $1,229 | $1,360 |
Stockholders' Equity | ||
Preferred stock, series A par value (in dollars per share) | $1 | $1 |
Preferred stock, series A liquidation preference (in dollars per share) | $1,000 | $1,000 |
Preferred stock issued, shares | 4,000,000 | 4,000,000 |
Common Stock, Shares Authorized | 1,500,000,000 | 1,500,000,000 |
Common Stock, Par Value | $2.50 | $2.50 |
Common Stock, Shares, Issued | 1,242,763,276 | 1,221,557,253 |
Treasury Stock, Shares | 85,168,571 | 8,152,030 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Operating Activities | |||||
Net Income | $3,839 | $4,816 | $1,100 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 2,747 | 2,681 | 2,698 | ||
Provision (Credit) for deferred income tax | 466 | 113 | -465 | ||
Earnings of nonconsolidated affiliates less than (in excess of) dividends received | 121 | -129 | 287 | ||
Pension contributions | -815 | -865 | -903 | ||
Net gain on sales of investments | -76 | -135 | -19 | ||
Net gain on sales of property, businesses and consolidated companies | -45 | -582 | -74 | ||
Net gain on sales of ownership interest in nonconsolidated affiliates | 1 | -30 | 0 | ||
Goodwill and other intangible asset impairment losses | 50 | [1] | 0 | 220 | [1] |
Assets impairments and related costs | 23 | 184 | 0 | ||
Restructuring charges (credits) | -3 | -22 | 1,343 | ||
Loss on early extinguishment of debt | 0 | 329 | 123 | ||
Asbestos-related charge | 78 | [2] | 0 | 0 | |
Excess tax benefits from share-based payment arrangements | -42 | -23 | -76 | ||
Other net loss | 70 | 37 | 48 | ||
Changes in assets and liabilities, net of effects of acquired and divested companies: | |||||
Accounts and notes receivable | -884 | -915 | -2,534 | ||
Proceeds from interests in trade accounts receivable conduits | 1,079 | 1,028 | 2,650 | ||
Inventories | 224 | 130 | -871 | ||
Accounts payable | -79 | -408 | 261 | ||
Other assets and liabilities | -252 | 1,614 | 287 | ||
Cash provided by operating activities | 6,502 | 7,823 | 4,075 | ||
Investing Activities | |||||
Capital expenditures | -3,572 | -2,302 | -2,614 | ||
Construction of assets pending sale-leaseback | -48 | 0 | 0 | ||
Proceeds form sale-leaseback of assets | 470 | 42 | 0 | ||
Proceeds from sales of property, businesses and consolidated companies, net of cash divested | 119 | 660 | 77 | ||
Acquisitions of businesses | 0 | 0 | -2 | ||
Investments in consolidated companies, net of cash acquired | -5 | -21 | -37 | ||
Investments in and loans to nonconsolidated affiliates | -270 | -137 | -285 | ||
Distributions and loan repayments from nonconsolidated affiliates | 69 | 46 | 130 | ||
Proceeds from sale of ownership interests in nonconsolidated affiliates | 8 | 66 | 0 | ||
Purchases of investments | -643 | -462 | -509 | ||
Proceeds from sales and maturities of investments | 767 | 639 | 553 | ||
Cash used in investing activities | -3,105 | -1,469 | -2,687 | ||
Financing Activities | |||||
Changes in short-term notes payable | 74 | -37 | -116 | ||
Proceeds from issuance of long-term debt | 2,448 | 959 | 3,347 | ||
Payments on long-term debt | -747 | -4,272 | -3,988 | ||
Purchases of treasury stock | -4,193 | -307 | 0 | ||
Proceeds from issuance of common stock | 679 | 386 | 295 | ||
Proceeds from sales of common stock | 269 | 0 | 0 | ||
Issuance costs for debt and equity securities | -20 | -7 | -22 | ||
Excess tax benefits from share-based payment arrangements | 42 | 23 | 76 | ||
Distributions to noncontrolling interests | -91 | -55 | -72 | ||
Contributions from noncontrolling interest | 36 | 58 | 0 | ||
Purchases of noncontrolling interests | -60 | 0 | 0 | ||
Dividends paid to stockholders | -2,020 | -1,479 | -2,050 | ||
Cash used in financing activities | -3,583 | -4,731 | -2,530 | ||
Effect of Exchange Rate Changes on Cash | -100 | -1 | 16 | ||
Summary | |||||
Increase (Decrease) in cash and cash equivalents | -286 | 1,622 | -1,126 | ||
Cash and cash equivalents at beginning of year | 5,940 | 4,318 | 5,444 | ||
Cash and cash equivalents at end of year | $5,654 | $5,940 | $4,318 | ||
[1] | See Note 11 for information regarding intangible asset impairment losses and Note 9 for information regarding the goodwill impairment loss. | ||||
[2] | See Note 14 for information regarding the asbestos-related charge. |
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 [Member] | 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 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Common stock issued | 47 | 248 | ||||||||
Stock-based compensation and allocation of ESOP shares | 370 | |||||||||
Other | 0 | 1 | ||||||||
Net Income available for The Dow Chemical Company common stockholders | 842 | 842 | ||||||||
Dividends declared on common stock (per share - 2013: $1.28; 2012: $1.21; 2011: $0.90) | -1,419 | |||||||||
Dividend equivalents on participating securities | -15 | |||||||||
Other comprehensive income (loss) | -1,520 | -1,520 | ||||||||
Shares acquired | -11 | |||||||||
Shares allocated to ESOP participants | 54 | |||||||||
Purchases | 0 | |||||||||
Issuance to employees and employee plans | 0 | |||||||||
Total Equity, Ending at Dec. 31, 2012 | 21,867 | |||||||||
Stockholders' Equity Attributable to Noncontrolling Interest, Ending at Dec. 31, 2012 | 990 | |||||||||
Stockholders' Equity Attributable to Parent, Ending at Dec. 31, 2012 | 20,877 | 4,000 | 3,008 | 3,281 | 18,495 | -7,516 | -391 | 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Common stock issued | 46 | 340 | ||||||||
Stock-based compensation and allocation of ESOP shares | 307 | |||||||||
Other | 0 | 4 | ||||||||
Net Income available for The Dow Chemical Company common stockholders | 4,447 | 4,447 | ||||||||
Dividends declared on common stock (per share - 2013: $1.28; 2012: $1.21; 2011: $0.90) | -1,520 | |||||||||
Dividend equivalents on participating securities | -15 | |||||||||
Other comprehensive income (loss) | 2,689 | 2,689 | ||||||||
Shares acquired | -11 | |||||||||
Shares allocated to ESOP participants | 45 | |||||||||
Purchases | -307 | |||||||||
Issuance to employees and employee plans | 0 | |||||||||
Total Equity, Ending at Dec. 31, 2013 | 27,924 | |||||||||
Stockholders' Equity Attributable to Noncontrolling Interest, Ending at Dec. 31, 2013 | 1,026 | 1,026 | ||||||||
Stockholders' Equity Attributable to Parent, Ending at Dec. 31, 2013 | 26,898 | 26,898 | 4,000 | 3,054 | 3,928 | 21,407 | -4,827 | -357 | -307 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Common stock issued | 53 | 895 | ||||||||
Stock-based compensation and allocation of ESOP shares | 30 | |||||||||
Other | -7 | -3 | ||||||||
Net Income available for The Dow Chemical Company common stockholders | 3,432 | 3,432 | ||||||||
Dividends declared on common stock (per share - 2013: $1.28; 2012: $1.21; 2011: $0.90) | -1,777 | |||||||||
Dividend equivalents on participating securities | -17 | |||||||||
Other comprehensive income (loss) | -3,190 | -3,190 | ||||||||
Shares acquired | -11 | |||||||||
Shares allocated to ESOP participants | 43 | |||||||||
Purchases | -4,193 | |||||||||
Issuance to employees and employee plans | 267 | |||||||||
Total Equity, Ending at Dec. 31, 2014 | 23,354 | |||||||||
Stockholders' Equity Attributable to Noncontrolling Interest, Ending at Dec. 31, 2014 | 931 | 931 | ||||||||
Stockholders' Equity Attributable to Parent, Ending at Dec. 31, 2014 | $22,423 | $22,423 | $4,000 | $3,107 | $4,846 | $23,045 | ($8,017) | ($325) | ($4,233) |
Consolidated_Statements_of_Equ1
Consolidated Statements of Equity (Parentheticals) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Retained Earnings [Abstract] | ||||
Dividends declared on common stock (Per share) | $0.37 | $1.53 | $1.28 | $1.21 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Principles of Consolidation and Basis of Presentation | |
The accompanying 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 include the assets, liabilities, revenues and expenses of all majority-owned subsidiaries over which the Company exercises control and, when applicable, entities for which the Company has a controlling financial interest or is the primary beneficiary. Intercompany transactions and balances are eliminated in consolidation. Investments in nonconsolidated affiliates (20-50 percent owned companies, joint ventures and partnerships) are accounted for using the equity method. | |
Use of Estimates in Financial Statement Preparation | |
The preparation of financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company’s consolidated financial statements include amounts that are based on management’s best estimates and judgments. Actual results could differ from those estimates. | |
Foreign Currency Translation | |
The local currency has been primarily used as the functional currency throughout the world. Translation gains and losses of those operations that use local currency as the functional currency are included in the consolidated balance sheets in “Accumulated other comprehensive loss” (“AOCL”). Where the U.S. dollar is used as the functional currency or when the foreign subsidiary operates in a hyper-inflationary environment, foreign currency translation gains and losses are reflected in income. | |
Environmental Matters | |
Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated based on current law and existing technologies. These accruals are adjusted periodically as assessment and remediation efforts progress or as additional technical or legal information becomes available. Accruals for environmental liabilities are included in the consolidated balance sheets in “Accrued and other current liabilities” and “Other noncurrent obligations” at undiscounted amounts. Accruals for related insurance or other third-party recoveries for environmental liabilities are recorded when it is probable that a recovery will be realized and are included in the consolidated balance sheets as “Accounts and notes receivable - Other.” | |
Environmental costs are capitalized if the costs extend the life of the property, increase its capacity, and/or mitigate or prevent contamination from future operations. Environmental costs are also capitalized in recognition of legal asset retirement obligations resulting from the acquisition, construction and/or normal operation of a long-lived asset. Costs related to environmental contamination treatment and cleanup are charged to expense. Estimated future incremental operations, maintenance and management costs directly related to remediation are accrued when such costs are probable and reasonably estimable. | |
Cash and Cash Equivalents | |
Cash and cash equivalents include time deposits and investments with maturities of three months or less at the time of purchase. | |
Financial Instruments | |
The Company calculates the fair value of financial instruments using quoted market prices whenever available. When quoted market prices are not available for various types of financial instruments (such as forwards, options and swaps), the Company uses standard pricing models with market-based inputs that take into account the present value of estimated future cash flows. | |
The Company utilizes derivatives to manage exposures to foreign currency exchange rates, commodity prices and interest rate risk. The fair values of all derivatives are recognized as assets or liabilities at the balance sheet date. Changes in the fair value of these instruments are reported in income or AOCL, depending on the use of the derivative and whether it qualifies for hedge accounting treatment. | |
Gains and losses on derivatives that are designated and qualify as cash flow hedging instruments are recorded in AOCL, to the extent the hedges are effective, until the underlying transactions are recognized in income. To the extent effective, gains and losses on derivative and nonderivative instruments used as hedges of the Company’s net investment in foreign operations are recorded in AOCL as part of the cumulative translation adjustment. The ineffective portions of cash flow hedges and hedges of net investment in foreign operations, if any, are recognized in income immediately. | |
Gains and losses on derivatives designated and qualifying as fair value hedging instruments, as well as the offsetting losses and gains on the hedged items, are reported in income in the same accounting period. Derivatives not designated as hedging instruments are marked-to-market at the end of each accounting period with the results included in income. | |
Inventories | |
Inventories are stated at the lower of cost or market. The method of determining cost for each subsidiary varies among last-in, first-out (“LIFO”); first-in, first-out (“FIFO”); and average cost, and is used consistently from year to year. | |
The Company routinely exchanges and swaps raw materials and finished goods with other companies to reduce delivery time, freight and other transportation costs. These transactions are treated as non-monetary exchanges and are valued at cost. | |
Property | |
Land, buildings and equipment, including property under capital lease agreements, are carried at cost less accumulated depreciation. Depreciation is based on the estimated service lives of depreciable assets and is calculated using the straight-line method, unless the asset was capitalized before 1997 when the declining balance method was used. Fully depreciated assets are retained in property and accumulated depreciation accounts until they are removed from service. In the case of disposals, assets and related accumulated depreciation are removed from the accounts, and the net amounts, less proceeds from disposal, are included in income. | |
Impairment and Disposal of Long-Lived Assets | |
The Company evaluates long-lived assets and certain identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When undiscounted future cash flows are not expected to be sufficient to recover an asset’s carrying amount, the asset is written down to its fair value based on bids received from third parties or a discounted cash flow analysis based on market participant assumptions. | |
Long-lived assets to be disposed of by sale, if material, are classified as held for sale and reported at the lower of carrying amount or fair value less cost to sell, and depreciation is ceased. Long-lived assets to be disposed of other than by sale are classified as held and used until they are disposed of and reported at the lower of carrying amount or fair value, and depreciation is recognized over the remaining useful life of the assets. | |
Goodwill and Other Intangible Assets | |
The Company records goodwill when the purchase price of a business acquisition exceeds the estimated fair value of net identified tangible and intangible assets acquired. Goodwill is tested for impairment at the reporting unit level annually, or more frequently when events or changes in circumstances indicate that the fair value of a reporting unit has more likely than not declined below its carrying value. When testing goodwill for impairment, the Company may first assess qualitative factors. If an initial qualitative assessment identifies that it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value, additional quantitative testing is performed. The Company may also elect to skip the qualitative testing and proceed directly to the quantitative testing. If the quantitative testing indicates that goodwill is impaired, the carrying value of goodwill is written down to fair value. The Company primarily utilizes a discounted cash flow methodology to calculate the fair value of its reporting units. See Note 9 for further information on goodwill. | |
Finite-lived intangible assets such as purchased customer lists, licenses, intellectual property, patents, trademarks and software, are amortized over their estimated useful lives, generally on a straight-line basis for periods ranging primarily from three to twenty years. Finite-lived intangible assets are reviewed for impairment or obsolescence annually, or more frequently when events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable. If impaired, intangible assets are written down to fair value based on discounted cash flows. | |
Asset Retirement Obligations | |
The Company records asset retirement obligations as incurred and reasonably estimable, including obligations for which the timing and/or method of settlement are conditional on a future event that may or may not be within the control of the Company. The fair values of obligations are recorded as liabilities on a discounted basis and are accreted over time for the change in present value. Costs associated with the liabilities are capitalized and amortized over the estimated remaining useful life of the asset, generally for periods of 10 years or less. | |
Investments | |
Investments in debt and marketable equity securities (including warrants), primarily held by the Company’s insurance operations, are classified as trading, available-for-sale or held-to-maturity. Investments classified as trading are reported at fair value with unrealized gains and losses related to mark-to-market adjustments included in income. Those classified as available-for-sale are reported at fair value with unrealized gains and losses recorded in AOCL. Those classified as held-to-maturity are recorded at amortized cost. The cost of investments sold is determined by FIFO or specific identification. The Company routinely reviews available-for-sale and held-to-maturity securities for other-than-temporary declines in fair value below the cost basis. When events or changes in circumstances indicate the carrying value of an asset may not be recoverable, the security is written down to fair value, establishing a new cost basis. | |
Revenue | |
Sales are recognized when the revenue is realized or realizable, and the earnings process is complete. Approximately 99 percent of the Company’s sales in 2014 related to sales of product (99 percent in 2013 and 99 percent in 2012). The remaining 1 percent in 2014 related to the Company’s service offerings, insurance operations, and licensing of patents and technology (1 percent in 2013 and 1 percent in 2012). Revenue for product sales is recognized as risk and title to the product transfer to the customer, which usually occurs at the time shipment is made. As such, title to the product passes when the product is delivered to the freight carrier. Dow’s standard terms of delivery are included in its contracts of sale, order confirmation documents and invoices. Freight costs and any directly related costs of transporting finished product to customers are recorded as “Cost of sales” in the consolidated statements of income. | |
Revenue related to the Company’s insurance operations includes third-party insurance premiums, which are earned over the terms of the related insurance policies and reinsurance contracts. Revenue related to the initial licensing of patents and technology is recognized when earned; revenue related to running royalties is recognized according to licensee production levels. | |
Legal Costs | |
The Company expenses legal costs as incurred. Accruals for legal matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. | |
Severance Costs | |
The Company routinely reviews its operations around the world in an effort to ensure competitiveness across its businesses and geographic areas. When the reviews result in a workforce reduction related to the shutdown of facilities or other optimization activities, severance benefits are provided to employees primarily under Dow’s ongoing benefit arrangements. These severance costs are accrued once management commits to a plan of termination including the number of employees to be terminated, their job classifications or functions, their locations and the expected termination date. | |
Income Taxes | |
The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities using enacted tax rates. The effect of a change in tax rates on deferred tax assets or liabilities is recognized in income in the period that includes the enactment date. | |
Annual tax provisions include amounts considered sufficient to pay assessments that may result from examinations of prior year tax returns; however, the amount ultimately paid upon resolution of issues raised may differ from the amounts accrued. | |
The Company recognizes the financial statement effects of an uncertain income tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. The Company accrues for other tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated. The current portion of uncertain income tax positions is included in “Income taxes payable” and the long-term portion is included in “Other noncurrent obligations” in the consolidated balance sheets. | |
Provision is made for taxes on undistributed earnings of foreign subsidiaries and related companies to the extent that such earnings are not deemed to be permanently invested. | |
Earnings per Common Share | |
The calculation of earnings per common share is based on the weighted-average number of the Company’s common shares outstanding for the applicable period. The calculation of diluted earnings per common share reflects the effect of all dilutive potential common shares that were outstanding during the respective periods, unless the effect of doing so is antidilutive. |
RECENT_ACCOUNTING_GUIDANCE
RECENT ACCOUNTING GUIDANCE | 12 Months Ended |
Dec. 31, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Guidance [Text Block] | RECENT ACCOUNTING GUIDANCE |
Recently Adopted Accounting Guidance | |
During the fourth quarter of 2014, the Company adopted Accounting Standards Update ("ASU") 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity," which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. This ASU is effective for fiscal years beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in the financial statements previously issued or available for issuance. See Note 5 for disclosures related to this adoption. | |
Accounting Guidance Issued But Not Adopted as of December 31, 2014 | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," which is the new comprehensive revenue recognition standard that will supersede all existing revenue recognition guidance under U.S. GAAP. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to a customer in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU is effective for annual and interim periods beginning on or after December 15, 2016, and early adoption is not permitted. Entities will have the option of using either a full retrospective approach or a modified approach to adopt the guidance in the ASU. | |
The Company is currently evaluating the impact of adopting this guidance. |
RESTRUCTURING
RESTRUCTURING | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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 restructuring plan affected approximately 2,850 positions and resulted in the shutdown of approximately 20 manufacturing facilities. These actions were substantially completed at December 31, 2014. | |||||||||||||||||
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 impact of these charges is shown as "Restructuring charges (credits)" in the consolidated statements of income and reflected in the Company's segments results as shown in the following table: | |||||||||||||||||
4Q12 Restructuring Charges by Operating Segment | Costs Associated with Exit or Disposal Activities | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments | |||||||||||||||
In millions | Severance Costs | Total | |||||||||||||||
Consumer Solutions | $ | — | $ | — | $ | 136 | $ | 136 | |||||||||
Infrastructure Solutions | — | — | 24 | 24 | |||||||||||||
Performance Materials & Chemicals | 19 | — | 77 | 96 | |||||||||||||
Performance Plastics | 8 | — | 25 | 33 | |||||||||||||
Corporate | 12 | 375 | 314 | 701 | |||||||||||||
Total 4Q12 Restructuring charges | $ | 39 | $ | 375 | $ | 576 | $ | 990 | |||||||||
Adjustments to 4Q12 Restructuring charges | |||||||||||||||||
2013 - Performance Plastics | (6 | ) | — | — | (6 | ) | |||||||||||
2014 - Performance Materials & Chemicals | (3 | ) | — | — | (3 | ) | |||||||||||
Net 4Q12 Restructuring charges | $ | 30 | $ | 375 | $ | 576 | $ | 981 | |||||||||
Details regarding the components of the 4Q12 Restructuring charges are discussed below: | |||||||||||||||||
Costs Associated with Exit or Disposal Activities | |||||||||||||||||
The restructuring charges for costs associated with exit or disposal activities totaled $39 million in the fourth quarter of 2012 and included $9 million of curtailment costs associated with other postretirement benefit plans, impacting Corporate; contract cancellation fees of $25 million, impacting Performance Materials & Chemicals ($17 million) and Performance Plastics ($8 million); and environmental remediation of $5 million, impacting Performance Materials & Chemicals ($2 million) and Corporate ($3 million). | |||||||||||||||||
Severance Costs | |||||||||||||||||
The restructuring charges in the fourth quarter of 2012 included severance of $375 million for the separation of approximately 2,850 employees under the terms of the Company's ongoing benefit arrangements, which is expected to be completed by March 31, 2015. These costs were charged against Corporate. At December 31, 2014, severance of $342 million had been paid and a liability of $33 million remained for approximately 230 employees. | |||||||||||||||||
Impairment of Long-Lived Assets, Other Assets and Equity Method Investments | |||||||||||||||||
The restructuring charges related to the write-down and write-off of assets in the fourth quarter of 2012 totaled $576 million. Details regarding the write-downs and write-offs are as follows: | |||||||||||||||||
• | As a result of weak global demand for lithium-ion batteries, the Company recorded a pretax impairment charge of $303 million related to the write-down of Dow Kokam LLC's long-lived assets, impacting Corporate. At the time of the impairment, Dow had a 63.6 percent ownership interest in Dow Kokam LLC. The impact to Dow, after adjustments for income taxes and the portion attributable to noncontrolling interests, was $189 million. | ||||||||||||||||
• | In response to global economic conditions and competitive dynamics, the decision was made to shut down and/or consolidate a number of manufacturing facilities, with an impact of $246 million, summarized as follows: | ||||||||||||||||
• | A Dow Automotive Systems diesel particulate filters manufacturing facility in Midland, Michigan, was shut down, resulting in the write-down of assets and capital projects associated with this facility of $114 million, impacting the Consumer Solutions segment. The facility was shut down in the fourth quarter of 2012. | ||||||||||||||||
• | Certain Industrial Solutions manufacturing facilities in Texas City, Texas, were consolidated and/or shut down, resulting in an asset write-down of $36 million against the Performance Materials & Chemicals segment. The assets were shut down in the fourth quarter of 2012. | ||||||||||||||||
• | An asset write-down of $17 million for a sodium borohydride manufacturing facility in Delfzijl, The Netherlands, was recorded against the Performance Materials & Chemicals segment in the fourth quarter of 2012. The manufacturing facility was shut down in the third quarter of 2013. | ||||||||||||||||
• | Two Interconnect Technologies manufacturing facilities, one in Lucerne, Switzerland, and the other in Marlborough, Massachusetts, were shut down or sold, resulting in a charge in the fourth quarter of 2012 related to the write-down of assets of $13 million against the Consumer Solutions segment. The manufacturing facility in Massachusetts was shut down in the fourth quarter of 2013; the manufacturing facility in Switzerland was sold in the third quarter of 2014. | ||||||||||||||||
• | An asset write-down of $9 million for a polyethylene manufacturing facility in Tessenderlo, Belgium, was recorded against the Performance Plastics segment in the fourth quarter of 2012. The manufacturing facility was shut down in the second quarter of 2013. | ||||||||||||||||
• | Certain Energy & Water Solutions manufacturing assets in Midland, Michigan, were shut down in the fourth quarter of 2012. As a result, an asset write-down of $9 million was recorded against the Infrastructure Solutions segment. | ||||||||||||||||
• | Polyurethanes manufacturing capacity was consolidated in the United States, resulting in the shut down of a Solon, Ohio, manufacturing facility and an asset write-down of $6 million in the fourth quarter of 2012, impacting the Performance Materials & Chemicals segment. The manufacturing facility was shut down in the third quarter of 2013. | ||||||||||||||||
• | The decision was made to shut down a number of small manufacturing, research and development, and administrative facilities to optimize the assets of the Company. Write-downs of $42 million were recorded in the fourth quarter of 2012, impacting Performance Materials & Chemicals ($15 million), Infrastructure Solutions ($12 million), Consumer Solutions ($9 million) and Corporate ($6 million). Most of these facilities were shut down by the end of the fourth quarter of 2014. | ||||||||||||||||
• | Certain capital projects were canceled resulting in the write-off of project spending of $8 million against the Performance Plastics ($7 million) and Infrastructure Solutions ($1 million) segments. | ||||||||||||||||
• | Due to a change in the Company's strategy regarding its ownership in Nippon Unicar Company, Limited ("NUC"), a 50:50 joint venture, the Company determined its equity investment in NUC to be other-than-temporarily impaired and recorded a $9 million write-down of its interest in NUC against the Performance Plastics segment in the fourth quarter of 2012. Dow divested its ownership interest in NUC on July 1, 2013. | ||||||||||||||||
• | The fourth quarter of 2012 restructuring charge also included the write-off of other assets associated with plant closures totaling $10 million. These charges are reflected in the results of the operating segments impacted by the restructuring activities. | ||||||||||||||||
The following table summarizes the activities related to the Company's 4Q12 Restructuring reserve, which is included in "Accrued and other current liabilities" and "Other noncurrent obligations" in the consolidated balance sheets: | |||||||||||||||||
4Q12 Restructuring Activities | Costs Associated with Exit or Disposal Activities | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments | |||||||||||||||
In millions | Severance Costs | Total | |||||||||||||||
Restructuring charges recognized in the fourth quarter of 2012 | $ | 39 | $ | 375 | $ | 576 | $ | 990 | |||||||||
Charges against the reserve | (9 | ) | — | (576 | ) | (585 | ) | ||||||||||
Cash payments | — | (8 | ) | — | (8 | ) | |||||||||||
Reserve balance at December 31, 2012 | $ | 30 | $ | 367 | $ | — | $ | 397 | |||||||||
Adjustments to the reserve | (6 | ) | — | — | (6 | ) | |||||||||||
Cash payments | (5 | ) | (228 | ) | — | (233 | ) | ||||||||||
Reserve balance at December 31, 2013 | $ | 19 | $ | 139 | $ | — | $ | 158 | |||||||||
Adjustments to the reserve | (3 | ) | — | — | (3 | ) | |||||||||||
Cash payments | (4 | ) | (106 | ) | — | (110 | ) | ||||||||||
Reserve balance at December 31, 2014 | $ | 12 | $ | 33 | $ | — | $ | 45 | |||||||||
The 4Q12 Restructuring activities were substantially completed in 2014, with remaining liabilities related to severance, contract cancellation fees and environmental remediation to be settled over time. | |||||||||||||||||
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, which was initiated by the Company in the second quarter of 2011. The 1Q12 Restructuring plan included the elimination of approximately 900 positions. In addition, the Company shut down a number of manufacturing facilities. These actions were substantially completed at 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 is shown as "Restructuring charges (credits)" in the consolidated statements of income and reflected in the Company's segment results as shown in the following table: | |||||||||||||||||
1Q12 Restructuring Charges by Operating Segment | Costs Associated with Exit or Disposal Activities | Impairment of Long-Lived Assets and Other Assets | |||||||||||||||
In millions | Severance Costs | Total | |||||||||||||||
Infrastructure Solutions | $ | 4 | $ | — | $ | 37 | $ | 41 | |||||||||
Performance Materials & Chemicals | 146 | — | 57 | 203 | |||||||||||||
Corporate | — | 113 | — | 113 | |||||||||||||
Total 1Q12 Restructuring charges | $ | 150 | $ | 113 | $ | 94 | $ | 357 | |||||||||
Adjustment to 1Q12 Restructuring charges: | |||||||||||||||||
2012 - Infrastructure Solutions | — | — | (4 | ) | (4 | ) | |||||||||||
2013 - Infrastructure Solutions | (1 | ) | — | — | (1 | ) | |||||||||||
2013 - Performance Materials & Chemicals | (15 | ) | — | — | (15 | ) | |||||||||||
Net 1Q12 Restructuring charges | $ | 134 | $ | 113 | $ | 90 | $ | 337 | |||||||||
Details regarding the components of the 1Q12 Restructuring charge are discussed below: | |||||||||||||||||
Costs Associated with Exit or Disposal Activities | |||||||||||||||||
The restructuring charges for costs associated with exit or disposal activities totaled $150 million in the first quarter of 2012 and included contract cancellation fees of $149 million, impacting Performance Materials & Chemicals ($146 million) and Infrastructure Solutions ($3 million), and asbestos abatement costs of $1 million impacting Infrastructure Solutions. | |||||||||||||||||
Severance Costs | |||||||||||||||||
The restructuring charges in the first quarter of 2012 included severance of $113 million for the separation of approximately 900 employees under the terms of the Company's ongoing benefit arrangements, primarily by December 31, 2013. These costs were charged against Corporate. At December 31, 2013, severance of $110 million had been paid and a liability of $3 million remained for 42 employees. | |||||||||||||||||
Impairment of Long-Lived Assets and Other Assets | |||||||||||||||||
The restructuring charges related to the write-down and write-off of assets in the first quarter of 2012 totaled $94 million. Details regarding the write-downs and write-offs are as follows: | |||||||||||||||||
• | The Company evaluated its facilities that manufacture STYROFOAM™ brand insulation and as a result, the decision was made to shut down facilities in Balatonfuzfo, Hungary; Estarreja, Portugal; and Charleston, Illinois. In addition, a facility in Terneuzen, The Netherlands, was idled and impaired. Write-downs associated with these facilities of $37 million were recorded in the first quarter of 2012 against the Infrastructure Solutions segment. The Netherlands facility was shut down at the end of the second quarter of 2012. The remaining facilities were shut down in the fourth quarter of 2012. | ||||||||||||||||
• | The decision was made to shut down and/or consolidate certain manufacturing assets in the Polyurethanes and Epoxy businesses in Texas and Germany. Write-downs associated with these assets of $15 million were recorded in the first quarter of 2012 against the Performance Materials & Chemicals segment. The manufacturing assets in Texas were shut down in the second quarter of 2012. The German manufacturing assets were shut down in 2012. | ||||||||||||||||
• | Certain capital projects were canceled resulting in the write-off of project spending of $42 million against the Performance Materials & Chemicals segment. | ||||||||||||||||
During the fourth quarter of 2012, the Company recorded a favorable adjustment to the 1Q12 Restructuring charge related to the impairment of long-lived assets and other assets of $4 million, impacting the Infrastructure Solutions segment. | |||||||||||||||||
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 | Impairment of Long-Lived Assets and Other Assets | Total | ||||||||||||||
Restructuring charges recognized in the first quarter of 2012 | $ | 150 | $ | 113 | $ | 94 | $ | 357 | |||||||||
Adjustments to the reserve | — | — | (4 | ) | (4 | ) | |||||||||||
Charges against the reserve | — | — | (90 | ) | (90 | ) | |||||||||||
Cash payments | (45 | ) | (82 | ) | — | (127 | ) | ||||||||||
Noncash settlements | (47 | ) | — | — | (47 | ) | |||||||||||
Foreign currency impact | (2 | ) | — | — | (2 | ) | |||||||||||
Reserve balance at December 31, 2012 | $ | 56 | $ | 31 | $ | — | $ | 87 | |||||||||
Adjustments to the reserve | (16 | ) | — | — | (16 | ) | |||||||||||
Cash payments | (15 | ) | (28 | ) | — | (43 | ) | ||||||||||
Noncash settlements | (8 | ) | — | — | (8 | ) | |||||||||||
Foreign currency impact | (1 | ) | — | — | (1 | ) | |||||||||||
Reserve balance at December 31, 2013 | $ | 16 | $ | 3 | $ | — | $ | 19 | |||||||||
The 1Q12 Restructuring activities were substantially completed in 2013, with remaining liabilities related to severance and contract cancellation fees to be settled over time. | |||||||||||||||||
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 geographic areas. Future costs are expected to include demolition costs related to closed facilities; 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. | |||||||||||||||||
2014 Adjustments to the 4Q12 Restructuring Plan | |||||||||||||||||
In 2014, the Company reduced the 4Q12 Restructuring reserve related to contract cancellation fees by $3 million, impacting Performance Materials & Chemicals. | |||||||||||||||||
2013 Adjustments to 1Q12 and 4Q12 Restructuring Plans | |||||||||||||||||
In 2013, the Company reduced the 4Q12 Restructuring reserve related to contract cancellation fees by $6 million, impacting Performance Plastics. The Company also reduced the 1Q12 Restructuring reserve related to the adjustment of contract cancellation fees and asbestos abatement costs by $16 million, impacting Infrastructure Solutions ($1 million) and Performance Materials & Chemicals ($15 million). |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2014 | |
Business Combination, Description [Abstract] | |
Acquisitions [Text Block] | ACQUISITIONS |
Acquisition of Cooperativa Central de Pesquisa Agrícola's Seed Business | |
On July 2, 2014, Dow AgroSciences LLC ("DAS") signed a binding agreement to purchase Cooperativa Central de Pesquisa Agrícola's ("Coodetec") seed business, pending regulatory approval by the Brazilian Antitrust Authority ("CADE"). CADE approved the transaction on December 12, 2014. On January 30, 2015, DAS acquired Coodetec's seed business for approximately $145 million, with approximately half of the purchase price to be paid in the first quarter of 2015 and the remaining portion to be paid in two equal installments in February 2016 and February 2017. The acquisition of Coodetec's seed business is expected to advance the development of Dow AgroSciences' soybean program and strengthen the Company’s position in the corn market segment. | |
Pending Acquisition of ExxonMobil Chemical Company's Interest in Univation Technologies, LLC | |
On October 2, 2014, the Company signed a definitive agreement with ExxonMobil Chemical Company ("ExxonMobil") to restructure the ownership of Univation Technologies, LLC ("Univation"), currently a 50:50 joint venture between Dow and ExxonMobil. This transaction will result in Univation becoming a wholly owned subsidiary of Dow. This transaction is expected to close in the first half of 2015, pending regulatory approvals. |
DIVESTITURES
DIVESTITURES | 12 Months Ended |
Dec. 31, 2014 | |
Divestitures [Abstract] | |
Divestitures [Text block] | DIVESTITURES |
During the fourth quarter of 2014, the Company adopted ASU 2014-08. In accordance with this guidance, the Company evaluated the pending divestitures of the Sodium Borohydride business and ANGUS Chemical Company ("ANGUS") (both discussed below) and determined that they do not have a major effect on the Company’s operations and financial results and do not qualify as individually significant components of the Company. As a result, the Sodium Borohydride business and ANGUS will not be reported as discontinued operations. In addition, the Sodium Borohydride and ANGUS assets and liabilities are immaterial and are not reflected as held for sale in the Company's consolidated balance sheets. | |
Divestiture of the Global Sodium Borohydride Business | |
On December 5, 2014, the Company signed a definitive agreement to sell its global Sodium Borohydride business, currently part of the Performance Materials & Chemicals segment, to Vertellus Specialty Materials LLC for approximately $190 million. The divestiture included a manufacturing facility located in Elma, Washington, as well as the associated business, inventory, customer contracts and lists, process technology, business know-how and certain intellectual property. The transaction closed on January 30, 2015. | |
Divestiture of ANGUS Chemical Company | |
On November 12, 2014, the Company signed a definitive agreement to sell ANGUS Chemical Company (“ANGUS”), currently part of the Performance Materials & Chemicals segment, to Golden Gate Capital for $1.215 billion. The divestiture included the business headquarters and research and development facility in Buffalo Grove, Illinois; manufacturing facilities located in Sterlington, Louisiana, and Ibbenbueren, Germany; a packaging facility in Niagara Falls, New York; as well as the associated business, inventory, customer contracts, process technology, business know-how and certain intellectual property. The transaction closed on February 2, 2015. | |
Divestiture of Polypropylene Licensing and Catalysts Business | |
On December 2, 2013, the Company sold its global Polypropylene Licensing and Catalysts business to W. R. Grace & Co. for $490 million, net of working capital adjustments and costs to sell, with proceeds subject to customary post-closing adjustments which were finalized in the fourth quarter of 2014. The carrying value of the net assets divested was $39 million. The Company recorded a $451 million pretax gain on the sale, included in "Sundry income (expense) - net" in the consolidated statements of income and reflected in Performance Plastics. The Company recorded an after-tax gain of $356 million on the sale. | |
Post-closing adjustments were finalized in the fourth quarter of 2014 and the Company recorded a pretax gain of $5 million ($3 million after tax) for the post-closing adjustments. The gain was included in "Sundry income (expense) - net" in the consolidated statements of income and reflected in Performance Plastics. | |
Divestiture of Ownership Interest in Dow Kokam LLC | |
On November 22, 2013, the Company sold its 67.4 percent ownership interest in Dow Kokam LLC ("Dow Kokam") to MBP Investors, LLC. The Company recorded a pretax gain of $26 million on the sale, included in "Sundry income (expense) - net" in the consolidated statements of income and reflected in Corporate. In the fourth quarter of 2012, the Company recorded a restructuring charge related to the impairment of Dow Kokam’s long-lived assets. See Note 3 for additional information. | |
As a condition of the sale, Dow acquired the third party lenders’ interest in Dow Kokam’s $75 million note, which is included in "Payments on long-term debt" in the consolidated statements of cash flows, and received a $75 million note from Dow Kokam. At December 31, 2014, $61 million is classified as "Noncurrent receivables" in the consolidated balance sheets. The note receivable is due to be paid in full by November 22, 2018. Payments received on the note receivable are included in "Proceeds from sales of property, businesses and consolidated companies, net of cash divested" in the consolidated statements of cash flows. | |
Divestiture of Contract Manufacturing Business | |
On December 31, 2011, the Company sold the shares of Chemoxy International Limited, a contract manufacturing company located in the United Kingdom, to Crossco (1255) Limited. | |
Post-closing adjustments were finalized in the fourth quarter of 2012 and the Company recognized a pretax and after-tax gain of $8 million for the post-closing adjustments. The gain was included in "Sundry income (expense) - net" in the consolidated statements of income and reflected in Performance Materials & Chemicals. |
INVENTORIES
INVENTORIES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventory Disclosure [Text Block] | INVENTORIES | |||||||
The following table provides a breakdown of inventories: | ||||||||
Inventories at December 31 | 2014 | 2013 | ||||||
In millions | ||||||||
Finished goods | $ | 4,547 | $ | 4,717 | ||||
Work in process | 1,905 | 1,948 | ||||||
Raw materials | 797 | 760 | ||||||
Supplies | 852 | 878 | ||||||
Total inventories | $ | 8,101 | $ | 8,303 | ||||
The reserves reducing inventories from a FIFO basis to a LIFO basis amounted to $569 million at December 31, 2014 and $854 million at December 31, 2013. Inventories valued on a LIFO basis, principally hydrocarbon and U.S. chemicals and plastics product inventories, represented 29 percent of the total inventories at December 31, 2014 and 25 percent of total inventories at December 31, 2013. | ||||||||
A reduction of certain inventories resulted in the liquidation of some of the Company’s LIFO inventory layers, increasing pretax income $23 million in 2014, $55 million in 2013 and $91 million in 2012. |
PROPERTY
PROPERTY | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||
Property, Plant and Equipment Disclosure [Text Block] | PROPERTY | ||||||||||||
Property at December 31 | Estimated Useful | 2014 | 2013 | ||||||||||
In millions | Lives (Years) | ||||||||||||
Land | — | $ | 874 | $ | 907 | ||||||||
Land and waterway improvements | 15-25 | 1,374 | 1,404 | ||||||||||
Buildings | May-55 | 4,910 | 4,945 | ||||||||||
Machinery and equipment | 20-Mar | 39,278 | 39,971 | ||||||||||
Utility and supply lines | 20-May | 2,448 | 2,446 | ||||||||||
Other property | Mar-50 | 1,940 | 2,430 | ||||||||||
Construction in progress | — | 4,406 | 3,011 | ||||||||||
Total property | $ | 55,230 | $ | 55,114 | |||||||||
In millions | 2014 | 2013 | 2012 | ||||||||||
Depreciation expense | $ | 2,136 | $ | 2,051 | $ | 2,057 | |||||||
Manufacturing maintenance and repair costs | $ | 2,117 | $ | 2,325 | $ | 2,188 | |||||||
Capitalized interest | $ | 125 | $ | 78 | $ | 84 | |||||||
NONCONSOLIDATED_AFFILIATES_AND
NONCONSOLIDATED AFFILIATES AND RELATED COMPANY TRANSACTIONS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||
Equity Method Investments and Joint Ventures Disclosure [Text Block] | NONCONSOLIDATED AFFILIATES AND RELATED COMPANY TRANSACTIONS | ||||||||||||
The Company’s investments in companies accounted for using the equity method (“nonconsolidated affiliates”) were $4,201 million at December 31, 2014 and $4,501 million at December 31, 2013. At December 31, 2014, the carrying amount of the Company’s investments in nonconsolidated affiliates was $56 million more than its share of the investees’ net assets, exclusive of additional differences for Dow Corning Corporation (“Dow Corning”) and MEGlobal, which are discussed separately below. At December 31, 2013, the carrying amount of the Company’s investments in nonconsolidated affiliates was $67 million more than its share of the investees’ net assets, exclusive of additional differences for Dow Corning and MEGlobal. Dividends received from the Company’s nonconsolidated affiliates were $961 million in 2014 (including accrued dividends of $5 million), $905 million in 2013 and $823 million in 2012. | |||||||||||||
At December 31, 2014, the Company’s investment in Dow Corning was $149 million less than the Company’s proportionate share of Dow Corning’s underlying net assets ($149 million less at December 31, 2013). This amount is considered a permanent difference related to the other-than-temporary decline in the Company's investment in Dow Corning, triggered by Dow Corning's May 15, 1995 bankruptcy filing, and Dow Corning's purchase of additional ownership interests in its Hemlock Semiconductor Group entities in 2013. Dow Corning emerged from bankruptcy in 2004. | |||||||||||||
At December 31, 2014, the Company’s investment in MEGlobal was $177 million less than the Company’s proportionate share of MEGlobal’s underlying net assets ($184 million less at December 31, 2013). This amount represents the difference between the value of certain assets of the joint venture and the Company’s related valuation on a U.S. GAAP basis, of which $41 million is being amortized over the remaining useful lives of the assets and $136 million is considered to be a permanent difference. In the fourth quarter of 2014, MEGlobal purchased the noncontrolling interest of a subsidiary, which resulted in a $3 million reduction in the permanent difference. | |||||||||||||
The Company and Saudi Arabian Oil Company formed Sadara Chemical Company ("Sadara") to build and operate a world-scale, fully integrated chemicals complex in Jubail Industrial City, Kingdom of Saudi Arabia. The first production units are expected to come on-line in the second half of 2015, with all units expected to be on-line in 2016. The Company's investment in Sadara is included in "Investments in and loans to nonconsolidated affiliates" in the consolidated statements of cash flows. | |||||||||||||
The nonconsolidated affiliates in which the Company has investments are primarily privately held companies; therefore, quoted market prices are not available. | |||||||||||||
Sales to and purchases from nonconsolidated affiliates were not material to the consolidated financial statements. Balances due to or due from nonconsolidated affiliates at December 31, 2014 and 2013 are as follows: | |||||||||||||
Balances Due To or Due From Nonconsolidated Affiliates at December 31 | |||||||||||||
In millions | 2014 | 2013 | |||||||||||
Accounts and notes receivable - other | $ | 511 | $ | 512 | |||||||||
Noncurrent receivables (1) | 212 | 5 | |||||||||||
Total assets | $ | 723 | $ | 517 | |||||||||
Notes payable | $ | 189 | $ | 137 | |||||||||
Accounts payable - other | 274 | 221 | |||||||||||
Total current liabilities | $ | 463 | $ | 358 | |||||||||
-1 | Included in "Noncurrent receivables" is a $193 million note receivable from Sadara that is expected to be converted into equity in the first quarter of 2015. | ||||||||||||
Principal Nonconsolidated Affiliates | |||||||||||||
Dow had an ownership interest in 59 nonconsolidated affiliates at December 31, 2014 (63 at December 31, 2013). The Company's principal nonconsolidated affiliates and its ownership interest (direct and indirect) for each at December 31, 2014, 2013 and 2012 are as follows: | |||||||||||||
Principal Nonconsolidated Affiliates at December 31 | Ownership Interest | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Dow Corning Corporation | 50 | % | 50 | % | 50 | % | |||||||
EQUATE Petrochemical Company K.S.C. (1) | 42.5 | % | 42.5 | % | 42.5 | % | |||||||
The Kuwait Olefins Company K.S.C. (1) | 42.5 | % | 42.5 | % | 42.5 | % | |||||||
The Kuwait Styrene Company K.S.C. (1) (2) | 42.5 | % | N/A | N/A | |||||||||
Map Ta Phut Olefins Company Limited (3) | 32.77 | % | 32.77 | % | 32.77 | % | |||||||
MEGlobal (1) | 50 | % | 50 | % | 50 | % | |||||||
Sadara Chemical Company | 35 | % | 35 | % | 35 | % | |||||||
The SCG-Dow Group: | |||||||||||||
Siam Polyethylene Company Limited | 50 | % | 50 | % | 50 | % | |||||||
Siam Polystyrene Company Limited | 50 | % | 50 | % | 50 | % | |||||||
Siam Styrene Monomer Co., Ltd. | 50 | % | 50 | % | 50 | % | |||||||
Siam Synthetic Latex Company Limited | 50 | % | 50 | % | 50 | % | |||||||
Univation Technologies, LLC (4) | 50 | % | 50 | % | 50 | % | |||||||
-1 | In the fourth quarter of 2014, the Company announced it will reconfigure and reduce its equity base in EQUATE Petrochemical Company K.S.C., The Kuwait Olefins Company K.S.C., The Kuwait Styrene Company K.S.C. and MEGlobal through a divestment of a portion of the Company’s interests. Dow expects such transaction(s) to be completed by mid-2016. | ||||||||||||
-2 | The Kuwait Styrene Company K.S.C. was added as a principal nonconsolidated affiliate in the fourth quarter of 2014. | ||||||||||||
-3 | The Company's effective ownership of Map Ta Phut Olefins Company Limited is 32.77 percent, of which the Company directly owns 20.27 percent and indirectly owns 12.5 percent through its equity interest in Siam Polyethylene Company Limited and Siam Synthetic Latex Company Limited. | ||||||||||||
-4 | On October 2, 2014, the Company reached a definitive agreement with ExxonMobil Chemical Company to acquire the remaining 50 percent ownership interest in Univation Technologies, LLC ("Univation"), which will result in Univation becoming a wholly owned subsidiary of Dow. The transaction is expected to close in the first half of 2015, pending regulatory approvals. | ||||||||||||
The Company’s investment in its principal nonconsolidated affiliates was $3,487 million at December 31, 2014 and $3,625 million at December 31, 2013. Equity earnings from these companies were $845 million in 2014, $951 million in 2013 and $479 million in 2012. Equity earnings from principal nonconsolidated affiliates decreased in 2014 compared with 2013, primarily due to lower equity earnings at EQUATE Petrochemical Company K.S.C., The Kuwait Styrene Company K.S.C. and MEGlobal as well as increased equity losses from Sadara which were partially offset by increased equity earnings from Dow Corning. In 2014, Dow Corning's equity earnings were unfavorably impacted by an impairment charge related to the abandonment of a polycrystalline silicon plant expansion in Clarksville, Tennessee, which was partially offset by a reduction to its implant liability reserve. In 2012, Dow Corning's equity earnings were negatively impacted by asset impairment and restructuring charges. | |||||||||||||
The summarized financial information that follows represents the combined accounts (at 100 percent) of the principal nonconsolidated affiliates. | |||||||||||||
Summarized Balance Sheet Information at December 31 | |||||||||||||
In millions | 2014 | 2013 (1) | |||||||||||
Current assets | $ | 9,611 | $ | 8,675 | |||||||||
Noncurrent assets | 27,025 | 24,166 | |||||||||||
Total assets | $ | 36,636 | $ | 32,841 | |||||||||
Current liabilities | $ | 6,321 | $ | 5,972 | |||||||||
Noncurrent liabilities | 21,047 | 17,129 | |||||||||||
Total liabilities | $ | 27,368 | $ | 23,101 | |||||||||
Noncontrolling interests | $ | 666 | $ | 624 | |||||||||
-1 | The summarized balance sheet information for 2013 does not include the results of The Kuwait Styrene Company K.S.C. as this entity became a principal nonconsolidated affiliate in 2014. | ||||||||||||
Summarized Income Statement Information | |||||||||||||
In millions | 2014 | 2013 (1) | 2012 (1) | ||||||||||
Sales | $ | 19,333 | $ | 18,257 | $ | 17,668 | |||||||
Gross profit | $ | 3,526 | $ | 3,403 | $ | 2,911 | |||||||
Net income | $ | 1,673 | $ | 1,906 | $ | 872 | |||||||
-1 | The summarized income statement information for 2013 and 2012 does not include the results of The Kuwait Styrene Company K.S.C. as this entity became a principal nonconsolidated affiliate in 2014. | ||||||||||||
The Company has service agreements with some of these entities, including contracts to manage the operations of manufacturing sites and the construction of new facilities; licensing and technology agreements; and marketing, sales, purchase and lease agreements. | |||||||||||||
The Company sells excess ethylene glycol produced at Dow's manufacturing facilities in the United States and Europe to MEGlobal. The Company also sells ethylene to MEGlobal as a raw material for its ethylene glycol plants in Canada. Sales of these products to MEGlobal represented 1 percent of total net sales in 2014 (1 percent of total net sales in 2013 and 1 percent of total net sales in 2012). Sales of ethylene glycol to MEGlobal are reflected in the Performance Materials & Chemicals segment and represented 2 percent of the segment's sales in 2014 (2 percent in 2013 and 2 percent in 2012). Sales of ethylene to MEGlobal are reflected in the Performance Plastics segment and represented 1 percent of the segment's sales in 2014 (2 percent in 2013 and 1 percent in 2012). |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | GOODWILL AND OTHER INTANGIBLE ASSETS | |||||||||||||||||||||||
The following tables show changes in the carrying amount of goodwill for the years ended December 31, 2014 and 2013, by operating segment: | ||||||||||||||||||||||||
2014 Goodwill | Agricultural | Consumer Solutions | Infrastructure Solutions | Performance | Performance Plastics | Total | ||||||||||||||||||
In millions | Sciences | Materials & Chemicals | ||||||||||||||||||||||
Gross goodwill at Jan 1, 2014 | $ | 1,563 | $ | 4,618 | $ | 4,540 | $ | 1,041 | $ | 1,465 | $ | 13,227 | ||||||||||||
Accumulated impairments at Jan 1, 2014 | — | (209 | ) | — | (220 | ) | — | (429 | ) | |||||||||||||||
Net goodwill at Jan 1, 2014 | $ | 1,563 | $ | 4,409 | $ | 4,540 | $ | 821 | $ | 1,465 | $ | 12,798 | ||||||||||||
Purchase price adjustment of a seed company | (5 | ) | — | — | — | — | (5 | ) | ||||||||||||||||
Foreign currency impact | — | (20 | ) | (89 | ) | (12 | ) | (40 | ) | (161 | ) | |||||||||||||
Net goodwill at Dec 31, 2014 | $ | 1,558 | $ | 4,389 | $ | 4,451 | $ | 809 | $ | 1,425 | $ | 12,632 | ||||||||||||
Accumulated impairments at Dec 31, 2014 | — | 209 | — | 220 | — | 429 | ||||||||||||||||||
Gross goodwill at Dec 31, 2014 | $ | 1,558 | $ | 4,598 | $ | 4,451 | $ | 1,029 | $ | 1,425 | $ | 13,061 | ||||||||||||
2013 Goodwill | Agricultural | Consumer Solutions | Infrastructure Solutions | Performance | Performance Plastics | Total | ||||||||||||||||||
In millions | Sciences | Materials & Chemicals | ||||||||||||||||||||||
Gross goodwill at Jan 1, 2013 | $ | 1,558 | $ | 4,611 | $ | 4,511 | $ | 1,037 | $ | 1,451 | $ | 13,168 | ||||||||||||
Accumulated impairments at Jan 1, 2013 | — | (209 | ) | — | (220 | ) | — | (429 | ) | |||||||||||||||
Net goodwill at Jan 1, 2013 | $ | 1,558 | $ | 4,402 | $ | 4,511 | $ | 817 | $ | 1,451 | $ | 12,739 | ||||||||||||
Acquisition of a seed company | 5 | — | — | — | — | 5 | ||||||||||||||||||
Sale of a Performance Monomers product line | — | — | (3 | ) | — | — | (3 | ) | ||||||||||||||||
Foreign currency impact | — | 7 | 32 | 4 | 14 | 57 | ||||||||||||||||||
Net goodwill at Dec 31, 2013 | $ | 1,563 | $ | 4,409 | $ | 4,540 | $ | 821 | $ | 1,465 | $ | 12,798 | ||||||||||||
Accumulated impairments at Dec 31, 2013 | — | 209 | — | 220 | — | 429 | ||||||||||||||||||
Gross goodwill at Dec 31, 2013 | $ | 1,563 | $ | 4,618 | $ | 4,540 | $ | 1,041 | $ | 1,465 | $ | 13,227 | ||||||||||||
Goodwill Impairments | ||||||||||||||||||||||||
The Company performs an impairment test for goodwill annually during the fourth quarter. Qualitative factors may be assessed by the Company to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. The qualitative factors assessed at the Company level include, but are not limited to, GDP growth rates, long-term hydrocarbon and energy prices, equity and credit market activity, discount rates, foreign exchange rates and overall financial performance. Qualitative factors assessed at the reporting unit level include, but are not limited to, changes in industry and market structure, competitive environments, planned capacity and new product launches, cost factors such as raw material prices, and financial performance of the reporting unit. | ||||||||||||||||||||||||
2014 Goodwill Impairment Testing | ||||||||||||||||||||||||
In 2014, the Company assessed qualitative factors for 9 of the 14 reporting units carrying goodwill. The qualitative assessment indicated that it was more likely than not that the fair value exceeded carrying value for those reporting units included in the qualitative test. The Company performed the first step of the quantitative testing for the remaining five reporting units. The Company utilized a discounted cash flow methodology to calculate the fair value of the reporting units. Based on the fair value analysis, management concluded that fair value exceeded carrying value for all reporting units. As a result, no additional quantitative testing was required for the reporting units. | ||||||||||||||||||||||||
2013 Goodwill Impairment Testing | ||||||||||||||||||||||||
In 2013, the Company assessed qualitative factors for 14 of the 19 reporting units carrying goodwill. The qualitative assessment indicated that it was more likely than not that the fair value exceeded carrying value for those reporting units included in the qualitative test. The Company performed the first step of the quantitative testing for the remaining five reporting units. The Company utilized a discounted cash flow methodology to calculate the fair value of the reporting units. Based on the fair value analysis, management concluded that fair value exceeded carrying value for all reporting units. As a result, no additional quantitative testing was required for the reporting units. | ||||||||||||||||||||||||
2012 Goodwill Impairment Testing | ||||||||||||||||||||||||
In 2012, the Company assessed qualitative factors for 11 of the 20 reporting units carrying goodwill. The qualitative assessment indicated that it was more likely than not that the fair value exceeded carrying value for those reporting units included in the qualitative test. The Company performed the first step of the quantitative testing for the remaining nine reporting units. The Company utilized a discounted cash flow methodology to calculate the fair value of the reporting units. Based on the fair value analysis, management concluded that fair value exceeded carrying value for all reporting units except Dow Formulated Systems. Management completed the second step of the quantitative test for Dow Formulated Systems which compared the implied fair value of the reporting unit's goodwill to the carrying value. As a result, the Company recorded an impairment loss of $220 million in the fourth quarter of 2012, which is included in "Goodwill and other intangible asset impairment losses" in the consolidated statements of income and reflected in the Performance Materials & Chemicals segment. The goodwill impairment loss represented the total amount of goodwill that was carried by the Dow Formulated Systems reporting unit. | ||||||||||||||||||||||||
Other Intangible Assets | ||||||||||||||||||||||||
The following table provides information regarding the Company’s other intangible assets: | ||||||||||||||||||||||||
Other Intangible Assets at December 31 | 2014 | 2013 | ||||||||||||||||||||||
In millions | Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Intangible assets with finite lives: | ||||||||||||||||||||||||
Licenses and intellectual property | $ | 1,777 | $ | (1,060 | ) | $ | 717 | $ | 1,774 | $ | (908 | ) | $ | 866 | ||||||||||
Patents | 122 | (108 | ) | 14 | 125 | (109 | ) | 16 | ||||||||||||||||
Software | 1,287 | (648 | ) | 639 | 1,186 | (591 | ) | 595 | ||||||||||||||||
Trademarks | 685 | (409 | ) | 276 | 686 | (345 | ) | 341 | ||||||||||||||||
Customer-related | 3,443 | (1,366 | ) | 2,077 | 3,622 | (1,181 | ) | 2,441 | ||||||||||||||||
Other | 158 | (146 | ) | 12 | 154 | (136 | ) | 18 | ||||||||||||||||
Total other intangible assets, finite lives | $ | 7,472 | $ | (3,737 | ) | $ | 3,735 | $ | 7,547 | $ | (3,270 | ) | $ | 4,277 | ||||||||||
IPR&D (1), indefinite lives | 33 | — | 33 | 37 | — | 37 | ||||||||||||||||||
Total other intangible assets | $ | 7,505 | $ | (3,737 | ) | $ | 3,768 | $ | 7,584 | $ | (3,270 | ) | $ | 4,314 | ||||||||||
(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 | 2014 | 2013 | 2012 | |||||||||||||||||||||
In millions | ||||||||||||||||||||||||
Other intangible assets, excluding software (1) | $ | 436 | $ | 461 | $ | 478 | ||||||||||||||||||
Software, included in “Cost of sales” | $ | 70 | $ | 67 | $ | 63 | ||||||||||||||||||
(1) Includes a $3 million asset impairment charge related to intangible assets in 2013. | ||||||||||||||||||||||||
During 2014, the Company recognized a $50 million asset impairment charge related to customer-related, trademarks and intellectual property intangible assets in the Dow Electronic Materials business, which is recorded in "Goodwill and other intangible asset impairment losses" in the consolidated statements of income and reflected in Consumer Solutions. During 2013, the Company recognized a $3 million asset impairment charge related to software, which is recorded in "Cost of sales" and reflected in Corporate. | ||||||||||||||||||||||||
Total estimated amortization expense for the next five fiscal years is as follows: | ||||||||||||||||||||||||
Estimated Amortization Expense | ||||||||||||||||||||||||
for Next Five Years | ||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||
2015 | $ | 485 | ||||||||||||||||||||||
2016 | $ | 476 | ||||||||||||||||||||||
2017 | $ | 445 | ||||||||||||||||||||||
2018 | $ | 424 | ||||||||||||||||||||||
2019 | $ | 359 | ||||||||||||||||||||||
FINANCIAL_INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Financial Instruments [Abstact] | ||||||||||||||||||||||||||||||||
Financial Instruments Text Block | FINANCIAL INSTRUMENTS | |||||||||||||||||||||||||||||||
The following table summarizes the fair value of financial instruments at December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments at December 31 | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
In millions | Cost | Gain | Loss | Fair | Cost | Gain | Loss | Fair | ||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||
Marketable securities: (1) | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
Government debt (2) | $ | 559 | $ | 26 | $ | (1 | ) | $ | 584 | $ | 544 | $ | 28 | $ | (8 | ) | $ | 564 | ||||||||||||||
Corporate bonds | 654 | 45 | (2 | ) | 697 | 659 | 43 | (7 | ) | 695 | ||||||||||||||||||||||
Total debt securities | $ | 1,213 | $ | 71 | $ | (3 | ) | $ | 1,281 | $ | 1,203 | $ | 71 | $ | (15 | ) | $ | 1,259 | ||||||||||||||
Equity securities | 566 | 177 | (15 | ) | 728 | 605 | 196 | (4 | ) | 797 | ||||||||||||||||||||||
Total marketable securities | $ | 1,779 | $ | 248 | $ | (18 | ) | $ | 2,009 | $ | 1,808 | $ | 267 | $ | (19 | ) | $ | 2,056 | ||||||||||||||
Long-term debt including debt due within one year (3) | $ | (19,232 | ) | $ | 100 | $ | (2,318 | ) | $ | (21,450 | ) | $ | (17,517 | ) | $ | 296 | $ | (2,246 | ) | $ | (19,467 | ) | ||||||||||
Derivatives relating to: | ||||||||||||||||||||||||||||||||
Interest rates | $ | — | $ | — | $ | (12 | ) | $ | (12 | ) | $ | — | $ | — | $ | (5 | ) | $ | (5 | ) | ||||||||||||
Commodities (4) | $ | — | $ | 3 | $ | (81 | ) | $ | (78 | ) | $ | — | $ | 11 | $ | (2 | ) | $ | 9 | |||||||||||||
Foreign currency | $ | — | $ | 26 | $ | (71 | ) | $ | (45 | ) | $ | — | $ | 45 | $ | (13 | ) | $ | 32 | |||||||||||||
-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 $21 million at December 31, 2014 and $22 million at December 31, 2013. | |||||||||||||||||||||||||||||||
-4 | Presented net of cash collateral, as disclosed in Note 11. | |||||||||||||||||||||||||||||||
Cost approximates fair value for all other financial instruments. | ||||||||||||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||||||
The Company’s investments in marketable securities are primarily classified as available-for-sale securities. | ||||||||||||||||||||||||||||||||
Investing Results | ||||||||||||||||||||||||||||||||
In millions | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Proceeds from sales of available-for-sale securities | $ | 675 | $ | 486 | $ | 514 | ||||||||||||||||||||||||||
Gross realized gains | $ | 99 | $ | 66 | $ | 40 | ||||||||||||||||||||||||||
Gross realized losses | $ | (6 | ) | $ | (4 | ) | $ | (11 | ) | |||||||||||||||||||||||
The following table summarizes the contractual maturities of the Company’s investments in debt securities: | ||||||||||||||||||||||||||||||||
Contractual Maturities of Debt Securities | ||||||||||||||||||||||||||||||||
at December 31, 2014 | ||||||||||||||||||||||||||||||||
In millions | Amortized Cost | Fair Value | ||||||||||||||||||||||||||||||
Within one year | $ | 8 | $ | 9 | ||||||||||||||||||||||||||||
One to five years | 496 | 517 | ||||||||||||||||||||||||||||||
Six to ten years | 503 | 521 | ||||||||||||||||||||||||||||||
After ten years | 206 | 234 | ||||||||||||||||||||||||||||||
Total | $ | 1,213 | $ | 1,281 | ||||||||||||||||||||||||||||
At December 31, 2014, the Company had $1,050 million ($1,581 million at December 31, 2013) of held-to-maturity securities (primarily Treasury Bills) classified as cash equivalents as these securities had 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 December 31, 2014, the Company had investments in money market funds of $1,655 million classified as cash equivalents ($1,331 million at December 31, 2013). | ||||||||||||||||||||||||||||||||
The net unrealized gain/loss from mark-to-market adjustments recognized in earnings on trading securities held at the end of the year was a $3 million gain in 2014, a $13 million loss in 2013 and a $1 million gain in 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 December 31, 2014 and 2013, aggregated by investment category: | ||||||||||||||||||||||||||||||||
Temporarily Impaired Securities at December 31 (1) | 2014 | 2013 | ||||||||||||||||||||||||||||||
Less than 12 months | Less than 12 months | |||||||||||||||||||||||||||||||
In millions | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||||||||
Value | Losses | Value | Losses | |||||||||||||||||||||||||||||
Government debt (2) | $ | 74 | $ | (1 | ) | $ | 160 | $ | (8 | ) | ||||||||||||||||||||||
Corporate bonds | 102 | (1 | ) | 213 | (7 | ) | ||||||||||||||||||||||||||
Equity securities | 175 | (15 | ) | 144 | (4 | ) | ||||||||||||||||||||||||||
Total temporarily impaired securities | $ | 351 | $ | (17 | ) | $ | 517 | $ | (19 | ) | ||||||||||||||||||||||
-1 | Unrealized losses of 12 months or more were $1 million at December 31, 2014 and less than $1 million at December 31, 2013. | |||||||||||||||||||||||||||||||
-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 2014, 2013 or 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 2014, other-than-temporary impairment write-downs on investments still held by the Company were $6 million ($2 million in 2013). | ||||||||||||||||||||||||||||||||
The aggregate cost of the Company's cost method investments totaled $181 million at December 31, 2014 ($185 million at December 31, 2013). Due to the nature of these investments, either the cost basis approximates fair market value or fair value is not readily determinable. These investments are reviewed quarterly for impairment indicators. The Company's impairment analysis resulted in an $18 million reduction in the cost basis of these investments for the year ended December 31, 2014; the analysis in 2013 resulted in a $6 million reduction for the year ended December 31, 2013. | ||||||||||||||||||||||||||||||||
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 December 31, 2014. 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 2015. | ||||||||||||||||||||||||||||||||
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 December 31, 2014, 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 December 31, 2014, 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 first quarter of 2015. | ||||||||||||||||||||||||||||||||
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 December 31, 2014, 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 2020. | ||||||||||||||||||||||||||||||||
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 loss” (“AOCL”); it is reclassified to “Cost of sales” in the same period or periods that the hedged transaction affects income. The unrealized amounts in AOCL fluctuate based on changes in the fair value of open contracts at the end of each reporting period. The Company anticipates volatility in AOCL 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 December 31, 2014 with a net loss of $8 million after tax and a notional U.S. dollar equivalent of $434 million (net loss of $3 million after tax and a notional U.S. dollar equivalent of $417 million at December 31, 2013). | ||||||||||||||||||||||||||||||||
Current open foreign currency forward contracts hedge the currency risk of forecasted feedstock purchase transactions until August 2015. The effective portion of the mark-to-market effects of the foreign currency forward contracts is recorded in AOCL; it is reclassified to income in the same period or periods that the underlying feedstock purchase affects income. The net gain from the foreign currency hedges included in AOCL at December 31, 2014 was $31 million after tax (net loss of $11 million after tax at December 31, 2013). During 2014, 2013 and 2012, there was no material impact on the consolidated financial statements due to foreign currency hedge ineffectiveness. At December 31, 2014, 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 $374 million ($459 million at December 31, 2013). | ||||||||||||||||||||||||||||||||
In the third quarter of 2014, the Company revised its risk management policies for cash flow hedges related to commodity swaps, futures and option contracts whereby allowing the maturity of trades to extend through December 2020, or 72 months at December 31, 2014 (at December 31, 2013 maturities of not more than 36 months were allowed). These trades are designated as cash flow hedges of forecasted commodity purchases. Current open contracts hedge forecasted transactions until December 2020. The effective portion of the mark-to-market effect of the cash flow hedge instrument is recorded in AOCL; it is reclassified to income in the same period or periods that the underlying commodity purchase affects income. The net loss from commodity hedges included in AOCL at December 31, 2014 was $96 million after tax ($14 million after tax gain at December 31, 2013). During 2014, 2013 and 2012, there was no material impact on the consolidated financial statements due to commodity hedge ineffectiveness. At December 31, 2014 and 2013, the Company had the following gross aggregate notionals of outstanding commodity forward and futures contracts to hedge forecasted purchases: | ||||||||||||||||||||||||||||||||
Commodity | Dec 31, 2014 | Dec 31, | Notional Volume Unit | |||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||
Corn | 1.3 | 2.7 | million bushels | |||||||||||||||||||||||||||||
Crude Oil | 0.5 | 0.5 | million barrels | |||||||||||||||||||||||||||||
Ethane | 0.9 | 1 | million barrels | |||||||||||||||||||||||||||||
Naphtha | — | 3 | kilotons | |||||||||||||||||||||||||||||
Natural Gas | 192.5 | 82.9 | million million British thermal units | |||||||||||||||||||||||||||||
Soybeans | 1.2 | 0.8 | million bushels | |||||||||||||||||||||||||||||
The net after-tax amounts to be reclassified from AOCL to income within the next 12 months are a $64 million loss for commodity contracts, a $31 million gain for foreign currency contracts and a $4 million loss for interest rate 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. At December 31, 2014 and 2013, the Company had no open interest rate swaps designated as fair value hedges of underlying fixed rate debt obligations. | ||||||||||||||||||||||||||||||||
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 AOCL. At December 31, 2014 and 2013, the Company had no open forward contracts or outstanding options to buy, sell or exchange foreign currencies designated as net foreign investment hedges. At December 31, 2014, the Company had outstanding foreign-currency denominated debt designated as a hedge of net foreign investment of $167 million ($190 million at December 31, 2013). The results of hedges of the Company’s net investment in foreign operations included in “Cumulative Translation Adjustments” in AOCL was a net gain of $15 million after tax for the period ended December 31, 2014 (net gain of $27 million after tax for the period ended December 31, 2013). During 2014, 2013 and 2012 there was no material impact on the consolidated financial statements due to hedge ineffectiveness. See Note 23 for further detail on changes in AOCL. | ||||||||||||||||||||||||||||||||
Other Derivative Instruments | ||||||||||||||||||||||||||||||||
The Company utilizes futures, options and swap instruments that are effective as economic hedges of commodity price exposures, but do not the meet hedge accounting criteria for derivatives and hedging. At December 31, 2014 and 2013, the Company had the following gross aggregate notionals of outstanding commodity contracts: | ||||||||||||||||||||||||||||||||
Commodity | Dec 31, | Dec 31, | Notional Volume Unit | |||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Ethane | 0.2 | 0.3 | million barrels | |||||||||||||||||||||||||||||
Gasoline | 15 | — | kilotons | |||||||||||||||||||||||||||||
Naphtha Price Spread | 91 | — | kilotons | |||||||||||||||||||||||||||||
Natural Gas | 0.5 | 5.2 | million million British thermal units | |||||||||||||||||||||||||||||
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 and cross-currency swaps with various expiration dates to buy, sell or exchange foreign currencies with a gross notional U.S. dollar equivalent of $20,156 million at December 31, 2014 ($17,228 million at December 31, 2013) and had no open interest rate swaps at December 31, 2014 and December 31, 2013. | ||||||||||||||||||||||||||||||||
The following table provides the fair value and gross balance sheet classification of derivative instruments at December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments | Balance Sheet Classification | 2014 | 2013 | |||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||||||||||
Commodities | Other current assets | $ | 4 | $ | 13 | |||||||||||||||||||||||||||
Foreign currency | Accounts and notes receivable – Other | 25 | — | |||||||||||||||||||||||||||||
Total derivatives designated as hedges | $ | 29 | $ | 13 | ||||||||||||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||||||||||
Commodities | Other current assets | $ | 2 | $ | 1 | |||||||||||||||||||||||||||
Foreign currency | Accounts and notes receivable – Other | 91 | 65 | |||||||||||||||||||||||||||||
Total derivatives not designated as hedges | $ | 93 | $ | 66 | ||||||||||||||||||||||||||||
Total asset derivatives | $ | 122 | $ | 79 | ||||||||||||||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||||||||||
Interest rates | Accounts payable – Other | $ | 12 | $ | 5 | |||||||||||||||||||||||||||
Commodities | Accounts payable – Other | 106 | 5 | |||||||||||||||||||||||||||||
Foreign currency | Accounts payable – Other | — | 9 | |||||||||||||||||||||||||||||
Total derivatives designated as hedges | $ | 118 | $ | 19 | ||||||||||||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||||||||||
Commodities | Accounts payable – Other | $ | 2 | $ | 1 | |||||||||||||||||||||||||||
Foreign currency | Accounts payable – Other | 161 | 24 | |||||||||||||||||||||||||||||
Total derivatives not designated as hedges | $ | 163 | $ | 25 | ||||||||||||||||||||||||||||
Total liability derivatives | $ | 281 | $ | 44 | ||||||||||||||||||||||||||||
Foreign currency derivatives not designated as hedges are offset by foreign exchange gains or losses resulting from the underlying exposures of foreign currency denominated assets and liabilities. The amount charged on a pretax basis related to foreign currency derivatives not designated as a hedge, which is included in "Sundry income (expense) - net" in the consolidated statements of income, was a loss of $333 million for 2014, gain of $89 million for 2013 and loss of $9 million for 2012. See Note 12 for the net impact of foreign exchange transactions. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
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 December 31, 2014 | 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) | $ | — | $ | 2,705 | $ | — | $ | — | $ | 2,705 | ||||||||||
Interests in trade accounts receivable conduits (3) | — | — | 1,328 | — | 1,328 | |||||||||||||||
Equity securities (4) | 692 | 36 | — | — | 728 | |||||||||||||||
Debt securities: (4) | ||||||||||||||||||||
Government debt (5) | — | 584 | — | — | 584 | |||||||||||||||
Corporate bonds | — | 697 | — | — | 697 | |||||||||||||||
Derivatives relating to: (6) | ||||||||||||||||||||
Commodities | — | 6 | — | (3 | ) | 3 | ||||||||||||||
Foreign currency | — | 116 | — | (90 | ) | 26 | ||||||||||||||
Total assets at fair value | $ | 692 | $ | 4,144 | $ | 1,328 | $ | (93 | ) | $ | 6,071 | |||||||||
Liabilities at fair value: | ||||||||||||||||||||
Long-term debt (7) | $ | — | $ | 21,450 | $ | — | $ | — | $ | 21,450 | ||||||||||
Derivatives relating to: (6) | ||||||||||||||||||||
Interest rates | — | 12 | — | — | 12 | |||||||||||||||
Commodities | 9 | 99 | — | (27 | ) | 81 | ||||||||||||||
Foreign currency | — | 161 | — | (90 | ) | 71 | ||||||||||||||
Total liabilities at fair value | $ | 9 | $ | 21,722 | $ | — | $ | (117 | ) | $ | 21,614 | |||||||||
-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 | Treasury Bills and money market funds 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 15 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 10 for the classification of derivatives in the consolidated balance sheets. | |||||||||||||||||||
-7 | See Note 10 for information on fair value measurements of long-term debt. | |||||||||||||||||||
Basis of Fair Value Measurements | Quoted Prices | Significant | Significant | Counterparty | Total | |||||||||||||||
on a Recurring Basis | in Active | Other | Unobservable | and Cash | ||||||||||||||||
at December 31, 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) | $ | — | $ | 2,912 | $ | — | $ | — | $ | 2,912 | ||||||||||
Interests in trade accounts receivable conduits (3) | — | — | 1,227 | — | 1,227 | |||||||||||||||
Equity securities (4) | 760 | 37 | — | — | 797 | |||||||||||||||
Debt securities: (4) | ||||||||||||||||||||
Government debt (5) | — | 564 | — | — | 564 | |||||||||||||||
Corporate bonds | — | 695 | — | — | 695 | |||||||||||||||
Derivatives relating to: (6) | ||||||||||||||||||||
Commodities | 3 | 11 | — | (3 | ) | 11 | ||||||||||||||
Foreign currency | — | 65 | — | (20 | ) | 45 | ||||||||||||||
Total assets at fair value | $ | 763 | $ | 4,284 | $ | 1,227 | $ | (23 | ) | $ | 6,251 | |||||||||
Liabilities at fair value: | ||||||||||||||||||||
Long-term debt (7) | $ | — | $ | 19,467 | $ | — | $ | — | $ | 19,467 | ||||||||||
Derivatives relating to: (6) | ||||||||||||||||||||
Interest Rates | — | 5 | — | — | 5 | |||||||||||||||
Commodities | 4 | 2 | — | (4 | ) | 2 | ||||||||||||||
Foreign currency | — | 33 | — | (20 | ) | 13 | ||||||||||||||
Total liabilities at fair value | $ | 4 | $ | 19,507 | $ | — | $ | (24 | ) | $ | 19,487 | |||||||||
-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 | Treasury Bills and money market funds 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 15 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 10 for the classification of derivatives in the consolidated balance sheets. | |||||||||||||||||||
-7 | See Note 10 for information on fair value measurements of long-term debt. | |||||||||||||||||||
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 $29 million at December 31, 2014 ($5 million of cash collateral at December 31, 2013). | ||||||||||||||||||||
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 on which the asset is most actively traded on the last trading day of the period, multiplied by the number of units held without consideration of transaction costs. | ||||||||||||||||||||
For assets and liabilities classified as Level 2 measurements, where the security is frequently traded in less active markets, fair value is based on the closing price at the end of the period; where the security is less frequently traded, fair value is based on the price a dealer would pay for the security or similar securities, adjusted for any terms specific to that asset or liability, or by using observable market data points of similar, more liquid securities to imply the price. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance and quality checks. | ||||||||||||||||||||
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 10 for further information on the types of instruments used by the Company for risk management. | ||||||||||||||||||||
There were no transfers between Levels 1 and 2 during the year ended December 31, 2014 and $4 million of transfers in the year ended December 31, 2013. | ||||||||||||||||||||
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 15 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 years ended December 31, 2014 and 2013: | ||||||||||||||||||||
Fair Value Measurements Using Level 3 Inputs for Interests Held in Trade Receivable Conduits (1) | 2014 | 2013 | ||||||||||||||||||
In millions | ||||||||||||||||||||
Balance at January 1 | $ | 1,227 | $ | 1,057 | ||||||||||||||||
Gain included in earnings (2) | 9 | — | ||||||||||||||||||
Purchases | 1,171 | 1,198 | ||||||||||||||||||
Settlements | (1,079 | ) | (1,028 | ) | ||||||||||||||||
Balance at December 31 | $ | 1,328 | $ | 1,227 | ||||||||||||||||
-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 basis used to measure certain assets and liabilities at fair value on a nonrecurring basis in the consolidated balance sheets in 2014, 2013 and 2012: | ||||||||||||||||||||
Basis of Fair Value Measurements | Significant | Total | ||||||||||||||||||
on a Nonrecurring Basis | Other | |||||||||||||||||||
Unobservable | ||||||||||||||||||||
Inputs | ||||||||||||||||||||
In millions | (Level 3) | Losses | ||||||||||||||||||
2014 | ||||||||||||||||||||
Assets at fair value: | ||||||||||||||||||||
Long-lived assets and other assets | $ | 4 | $ | (73 | ) | |||||||||||||||
2013 | ||||||||||||||||||||
Assets at fair value: | ||||||||||||||||||||
Long-lived assets, other assets and equity method investments | $ | 127 | $ | (178 | ) | |||||||||||||||
2012 | ||||||||||||||||||||
Assets at fair value: | ||||||||||||||||||||
Long-lived assets, other assets and equity method investments | $ | 45 | $ | (693 | ) | |||||||||||||||
Goodwill | $ | — | $ | (220 | ) | |||||||||||||||
2014 Fair Value Measurements on a Nonrecurring Basis | ||||||||||||||||||||
As a result of weakening demand for certain optical and ceramic technologies, the Company recognized a $73 million asset impairment charge in the fourth quarter of 2014 in the Dow Electronic Materials business. The charge was included in "Cost of sales" ($23 million) and "Goodwill and other intangible asset impairment losses" ($50 million) in the consolidated statements of income and reflected in Consumer Solutions. The assets, classified as Level 3 measurements, were written down to $4 million based on a valuation using unobservable inputs, including assumptions a market participant would use to measure the fair value of the group of assets, which included projected cash flows. | ||||||||||||||||||||
2013 Fair Value Measurements on a Nonrecurring Basis | ||||||||||||||||||||
As a result of Dow's announcement of its new market-driven growth strategy, the Company recognized a $178 million asset impairment charge in the fourth quarter of 2013, including charges for manufacturing plant shutdowns. The charge was included in "Cost of sales" ($175 million) and "Amortization of intangibles" ($3 million) in the consolidated statements of income and impacted the following businesses/operating segments: Energy & Water Solutions and Performance Monomers businesses, part of the Infrastructure Solutions segment ($93 million); Chlor-Alkali and Vinyl, Epoxy and Polyurethanes businesses, part of the Performance Materials & Chemicals segment ($70 million); and Corporate ($15 million). | ||||||||||||||||||||
The assets, classified as Level 3 measurements, were valued at $127 million using unobservable inputs, including assumptions a market participant would use to measure the fair value of the group of assets, which included projected cash flows. The carrying value by segment was as follows: Infrastructure Solutions assets were valued at $100 million; Performance Materials & Chemicals assets were valued at $9 million; and Corporate assets were valued at $18 million. | ||||||||||||||||||||
2012 Fair Value Measurements on a Nonrecurring Basis | ||||||||||||||||||||
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 (credits)" in the consolidated statements of income. During the fourth quarter of 2012, the Company reduced the 1Q12 Restructuring reserve by $4 million. See Note 3 for additional information. | ||||||||||||||||||||
In the second half of 2012, a $27 million asset impairment charge was recognized in the Infrastructure Solutions segment. The assets, classified as Level 3 measurements, were valued at $12 million using unobservable inputs, including assumptions a market participant would use to measure the fair value of the group of assets, which included projected cash flows. | ||||||||||||||||||||
As part of the 4Q12 Restructuring plan that was approved on October 23, 2012, the Company shut down a number of manufacturing facilities. The manufacturing assets and facilities associated with this plan were written down to zero in the fourth quarter of 2012. In addition, an equity method investment was impaired. The equity method investment, classified as a Level 3 measurement, was valued at $33 million using unobservable inputs, including assumptions a market participant would use to measure the fair value of the investment, which included projected cash flows. These impairment charges, totaling $576 million, were included in "Restructuring charges (credits)" in the consolidated statements of income. See Note 3 for additional information. | ||||||||||||||||||||
In the fourth quarter of 2012, the Company performed its annual goodwill impairment testing utilizing a discounted cash flow methodology as its valuation technique. As a result of this testing, the Company recognized a $220 million goodwill impairment charge related to its Dow Formulated Systems reporting unit (part of the Performance Materials & Chemicals segment), which was included in "Goodwill and other intangible asset impairment losses" in the consolidated statements of income. See Note 9 for additional information. |
SUPPLEMENTARY_INFORMATION
SUPPLEMENTARY INFORMATION | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Supplementary Information [Abstract] | |||||||||||||
SUPPLEMENTARY INFORMATION [Text Block] | SUPPLEMENTARY INFORMATION | ||||||||||||
Sundry Income (Expense) – Net | |||||||||||||
In millions | 2014 | 2013 | 2012 | ||||||||||
Gain on sales of other assets and investments (1) | $ | 40 | $ | 98 | $ | 81 | |||||||
Foreign exchange loss | (61 | ) | (31 | ) | (51 | ) | |||||||
Gain on termination of ethylene off-take agreement | 53 | — | — | ||||||||||
Chlorine value chain separation costs | (49 | ) | — | — | |||||||||
K-Dow settlement (2) | — | 2,161 | — | ||||||||||
Gain on sale of Polypropylene Licensing and Catalysts business (3) | 5 | 451 | — | ||||||||||
Loss on early extinguishment of debt | — | (329 | ) | (123 | ) | ||||||||
Gain on sale of a 7.5 percent ownership interest in Freeport LNG Development, L.P. | — | 87 | — | ||||||||||
Gain on sale of ownership interest in Dow Kokam LLC (3) | — | 26 | — | ||||||||||
Reclassification of cumulative translation adjustments | (12 | ) | 21 | — | |||||||||
Gain on sale of a contract manufacturing business | — | — | 8 | ||||||||||
Other - net | (3 | ) | 70 | 58 | |||||||||
Total sundry income (expense) – net | $ | (27 | ) | $ | 2,554 | $ | (27 | ) | |||||
-1 | The 2013 gain on sales of other assets and investments also included a $21 million gain reported as "Reclassification of cumulative translation adjustments." | ||||||||||||
-2 | See Note 14 for additional information. | ||||||||||||
-3 | See Note 5 for additional information. | ||||||||||||
Accrued and Other Current Liabilities | |||||||||||||
“Accrued and other current liabilities” were $2,839 million at December 31, 2014 and $2,916 million at December 31, 2013. Accrued payroll, which is a component of “Accrued and other current liabilities,” was $855 million at December 31, 2014 and $968 million at December 31, 2013. No other component of accrued liabilities was more than 5 percent of total current liabilities. | |||||||||||||
Other Income Statement Information | |||||||||||||
In millions | 2014 | 2013 | 2012 | ||||||||||
Provision for doubtful receivables (1) | $ | 52 | $ | 59 | $ | 13 | |||||||
-1 | Included in “Selling, general and administrative expenses” in the consolidated statements of income. | ||||||||||||
Supplemental Disclosure of Cash Flow Information | |||||||||||||
In millions | 2014 | 2013 | 2012 | ||||||||||
Cash payments for interest | $ | 1,038 | $ | 1,191 | $ | 1,345 | |||||||
Cash payments for income taxes | $ | 1,109 | $ | 1,708 | $ | 1,107 | |||||||
EARNINGS_PER_SHARE_CALCULATION
EARNINGS PER SHARE CALCULATIONS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings Per Share [Text Block] | EARNINGS PER SHARE CALCULATIONS | ||||||||||||
The following tables provide the earnings per share calculations for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||
Net Income for Earnings Per Share Calculations - Basic | 2014 | 2013 | 2012 | ||||||||||
In millions | |||||||||||||
Net income attributable to The Dow Chemical Company | $ | 3,772 | $ | 4,787 | $ | 1,182 | |||||||
Preferred stock dividends | (340 | ) | (340 | ) | (340 | ) | |||||||
Net income attributable to participating securities (1) | (27 | ) | (38 | ) | (13 | ) | |||||||
Net income attributable to common stockholders | $ | 3,405 | $ | 4,409 | $ | 829 | |||||||
Earnings Per Share Calculations - Basic | 2014 | 2013 | 2012 | ||||||||||
Dollars per share | |||||||||||||
Net income attributable to The Dow Chemical Company | $ | 3.22 | $ | 4.04 | $ | 1.01 | |||||||
Preferred stock dividends | (0.29 | ) | (0.29 | ) | (0.29 | ) | |||||||
Net income attributable to participating securities (1) | (0.02 | ) | (0.03 | ) | (0.01 | ) | |||||||
Net income attributable to common stockholders | $ | 2.91 | $ | 3.72 | $ | 0.71 | |||||||
Net Income for Earnings Per Share Calculations - Diluted | 2014 | 2013 | 2012 | ||||||||||
In millions | |||||||||||||
Net income attributable to The Dow Chemical Company | $ | 3,772 | $ | 4,787 | $ | 1,182 | |||||||
Preferred stock dividends (2) | (340 | ) | — | (340 | ) | ||||||||
Net income attributable to participating securities (1) | (27 | ) | (38 | ) | (13 | ) | |||||||
Net income attributable to common stockholders | $ | 3,405 | $ | 4,749 | $ | 829 | |||||||
Earnings Per Share Calculations - Diluted | 2014 | 2013 | 2012 | ||||||||||
Dollars per share | |||||||||||||
Net income attributable to The Dow Chemical Company | $ | 3.18 | $ | 3.71 | $ | 1 | |||||||
Preferred stock dividends (2) | (0.29 | ) | — | (0.29 | ) | ||||||||
Net income attributable to participating securities (1) | (0.02 | ) | (0.03 | ) | (0.01 | ) | |||||||
Net income attributable to common stockholders | $ | 2.87 | $ | 3.68 | $ | 0.7 | |||||||
Share Count Information | 2014 | 2013 | 2012 | ||||||||||
Shares in millions | |||||||||||||
Weighted-average common shares - basic | 1,170.90 | 1,186.20 | 1,169.70 | ||||||||||
Plus dilutive effect of stock options and awards | 16.1 | 7.4 | 6.7 | ||||||||||
Plus dilutive effect of assumed conversion of preferred stock (3) | — | 96.8 | — | ||||||||||
Weighted-average common shares - diluted | 1,187.00 | 1,290.40 | 1,176.40 | ||||||||||
Stock options and deferred stock awards excluded from EPS calculations (4) | 5.8 | 47.4 | 52.6 | ||||||||||
-1 | 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 periods ended December 31, 2014 and December 31, 2012 because the effect of adding them back would have been antidilutive. | ||||||||||||
-3 | Conversion of the Company's 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 periods ended December 31, 2014 and December 31, 2012 because the effect of including them would have been antidilutive. | ||||||||||||
-4 | 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. |
COMMITMENTS_AND_CONTINGENT_LIA
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
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 ten-year credit facility to Dow Corning as part of Dow Corning's Joint Plan of Reorganization. The aggregate amount available under the credit facility was originally $300 million, of which the Company's share was $150 million. No advances were issued under the credit facility and it expired June 1, 2014. | ||||||||||
Environmental Matters | ||||||||||
Introduction | ||||||||||
Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated based on current law and existing technologies. At December 31, 2014, the Company had accrued obligations of $706 million for probable environmental remediation and restoration costs, including $78 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 or cash flows. Inherent uncertainties exist in these estimates primarily due to unknown conditions, changing governmental regulations and legal standards regarding liability, and emerging remediation technologies for handling site remediation and restoration. At December 31, 2013, the Company had accrued obligations of $722 million for probable environmental remediation and restoration costs, including $73 million for the remediation of Superfund sites. | ||||||||||
The following table summarizes the activity in the Company's accrued obligations for environmental matters for the years ended December 31, 2014 and 2013: | ||||||||||
Accrued Obligations for Environmental Matters | ||||||||||
In millions | 2014 | 2013 | ||||||||
Balance at January 1 | $ | 722 | $ | 754 | ||||||
Additional accruals | 228 | 200 | ||||||||
Charges against reserve | (219 | ) | (222 | ) | ||||||
Foreign currency impact | (25 | ) | (10 | ) | ||||||
Balance at December 31 | $ | 706 | $ | 722 | ||||||
The amounts charged to income on a pretax basis related to environmental remediation totaled $227 million in 2014, $203 million in 2013 and $197 million in 2012. Capital expenditures for environmental protection were $78 million in 2014, $102 million in 2013 and $145 million in 2012. | ||||||||||
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 | ||||||||||
On March 6, 2012, the Company submitted an Interim Response Activity Plan Designed to Meet Criteria ("Work Plan") to the MDEQ that involved the sampling of soil at residential properties near the Midland site for the presence of dioxins to determine where clean-up may be required and then conducting remediation for properties that sample above the remediation criteria. The MDEQ approved the Work Plan on June 1, 2012 and implementation of the Work Plan began on June 4, 2012. During 2012 and 2013, the Company submitted and had approved by the MDEQ, amendments to the Work Plan to sample properties in 2012 and 2013 that were originally scheduled for sampling in 2014 through 2017. On March 14, 2014, the Company submitted a plan for properties to be sampled during 2014 ("2014 Plan"), as required by the approved Work Plan. On June 12, 2014, the Company submitted a modified plan based on MDEQ comments. The 2014 Plan was approved on June 27, 2014. As of December 31, 2014, remediation has been completed on all 132 properties that tested above the remediation criteria. | ||||||||||
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 ("Floodplain") as an additional segment. In August 2014, the EPA proposed for public comment the techniques that can be used to remedy the Floodplain, including proposed site specific clean-up criteria. In January 2015, the Company and the EPA entered into an order to address remediation of the Floodplain. The remedial work is expected to take place over the next six years. 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 three separate orders to perform limited remedial actions to implement early actions - two separate orders to address remedial actions in two of the nine geographic segments in the first Operable Unit and the order to address the Floodplain. | ||||||||||
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 ("MOU") to provide a mechanism for the Company to fund cooperative studies related to the assessment of natural resource damages. This MOU was amended and funding of cooperative studies was extended until March 2014. All cooperative studies have been completed. On April 7, 2008, the natural resource damage trustees released their “Natural Resource Damage Assessment Plan for the Tittabawassee River System Assessment Area.” | ||||||||||
At December 31, 2014, the accrual for these off-site matters was $62 million (included in the total accrued obligation of $706 million). At December 31, 2013, the Company had an accrual for these off-site matters of $47 million (included in the total accrued obligation of $722 million). | ||||||||||
Environmental Matters Summary | ||||||||||
It is the opinion of the Company’s management that the possibility is remote that costs in excess of those disclosed will have a material impact on the Company’s results of operations, financial condition or cash flows. | ||||||||||
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, and use of pesticides containing dibromochloropropane (“DBCP”) have 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 four decades. These suits principally allege personal injury resulting from exposure to asbestos-containing products and frequently seek both actual and punitive damages. The alleged claims primarily relate to products that Union Carbide sold in the past, alleged exposure to asbestos-containing products located on Union Carbide’s premises, and Union Carbide’s responsibility for asbestos suits filed against a former Union Carbide subsidiary, Amchem Products, Inc. (“Amchem”). In many cases, plaintiffs are unable to demonstrate that they have suffered any compensable loss as a result of such exposure, or that injuries incurred in fact resulted from exposure to Union Carbide’s products. | ||||||||||
Union Carbide expects more asbestos-related suits to be filed against Union Carbide and Amchem in the future, and will aggressively defend or reasonably resolve, as appropriate, both pending and future claims. | ||||||||||
Estimating the 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 October 2012, Union Carbide requested ARPC to review its historical 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 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. | ||||||||||
In October 2013, Union Carbide requested ARPC to review its historical asbestos claim and resolution activity and determine the appropriateness of updating its December 2012 study. In response to that request, ARPC reviewed and analyzed data through September 30, 2013. In December 2013, 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 2012 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, 2013, the asbestos-related liability for pending and future claims was $501 million. | ||||||||||
In October 2014, Union Carbide requested ARPC to review its historical asbestos claim and resolution activity and determine the appropriateness of updating its December 2012 study. In response to that request, ARPC reviewed and analyzed data through September 30, 2014. The resulting study, completed by ARPC in December 2014, estimates that the undiscounted cost of disposing of pending and future claims against Union Carbide and Amchem, excluding future defense and processing costs, to be between $540 million and $640 million through 2029 based on the data as of September 30, 2014. As in earlier studies, ARPC provided longer periods of time in its December 2014 study, but also reaffirmed that forecasts for shorter periods of time are more accurate than those for longer periods of time. | ||||||||||
In December 2014, based on ARPC's December 2014 study and Union Carbides's own review of the asbestos claim and resolution activity, Union Carbide determined that an adjustment to the accrual was required due to the increase in mesothelioma claim activity compared with what had been forecasted in the December 2012 study. Accordingly, Union Carbide increased its asbestos-related liability for pending and future claims by $78 million, included in "Asbestos-related charge" in the consolidated statements of income. At December 31, 2014, the asbestos-related liability for pending and future claims was $513 million. At December 31, 2014, approximately 22 percent of the recorded liability related to pending claims and approximately 78 percent related to future claims. At December 31, 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 a settlement with the remaining carrier. Union Carbide’s receivable for insurance recoveries related to its asbestos liability was $10 million at December 31, 2014 and $25 million at December 31, 2013. | ||||||||||
At December 31, 2014 and December 31, 2013, 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 at December 31 | 2014 | 2013 | ||||||||
In millions | ||||||||||
Receivables for defense and resolution costs – carriers with settlement agreements | $ | 69 | $ | 66 | ||||||
Receivables for insurance recoveries – carriers without settlement agreements | 10 | 25 | ||||||||
Total | $ | 79 | $ | 91 | ||||||
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. | ||||||||||
Union Carbide expenses defense costs as incurred. The pretax impact for defense and resolution costs, net of insurance, was $108 million in 2014, $107 million in 2013 and $100 million in 2012, and was reflected in “Cost of sales” in the consolidated statements of income. | ||||||||||
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 (as to the investigation in Europe) 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. After appeals were exhausted, the Dow Entities paid the fine, including accrued interest, on August 12, 2013, and 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 and the United Kingdom and Italian matters were settled in May 2014. Each of the settlement agreements was confidential and had an immaterial impact on the Company's consolidated financial statements. | ||||||||||
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 returned a damages verdict of approximately $400 million against the Company, which ultimately was trebled by the District Court under applicable antitrust laws - less offsets from other settling defendants - resulting in a judgment entered in July 2013 in the amount of $1.06 billion. The Company appealed this judgment to the U.S. Tenth Circuit Court of Appeals ("Tenth Circuit" or "Court of Appeals"), which heard oral arguments on the matter on May 14, 2014. On September 29, 2014, the Court of Appeals issued an opinion affirming the District Court judgment. On October 14, 2014, the Company filed a petition for Rehearing or Rehearing En Banc (collectively the "Rehearing Petition") with the Court of Appeals, which the Circuit Court denied on November 7, 2014. | ||||||||||
The Company will file a petition for writ of certiorari ("Writ Petition") with the U.S. Supreme Court in March 2015, seeking judicial review by the U.S. Supreme Court and requesting that the Supreme Court ultimately correct fundamental errors in the Circuit Court opinion. While it is unknowable whether or not the U.S. Supreme Court will accept the Writ Petition for review, there are several compelling reasons why the U.S. Supreme Court should grant the petition for writ of certiorari, and if the petition for writ of certiorari is accepted, the Company believes it is likely that the District Court judgment would be vacated. Specifically, it is the Company’s position that the Tenth Circuit decision violates the law as expressed by the U.S. Supreme Court as set out in Wal-Mart Stores, Inc. v. Dukes, 131 S. Ct. 2541 (2011) and Comcast Corp. v. Behrend, 133 S. Ct. 1426 (2013). The Tenth Circuit also did not follow accepted law from other federal circuits on dispositive case issues, including legal precedent from the U.S. First, Second, Third, Fifth, Ninth and D.C. Circuit Courts. Finally, the erroneous law applied by the Tenth Circuit is not supported by any other circuit court. | ||||||||||
The Company has consistently denied plaintiffs’ allegations of price fixing and, as outlined above, the Company will continue to vigorously defend this litigation. As part of the Company’s review of the jury verdict, the resulting judgment and the Court of Appeals’ opinions, the Company assessed the legal and factual circumstances of the case, the trial record, the appellate record, and the applicable law including clear precedent from the U.S. Supreme Court. Based on this review and the reasons stated above, the Company believes the judgment and decisions from the Court of Appeals are not appropriate. As a result, 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. While the Company believes it is not probable a loss will occur, the existence of the jury verdict, the Court of Appeals' opinion, and subsequent denial of Dow’s Rehearing Petition indicate that it is reasonably possible that a loss could occur. The estimate of the possible range of loss to Dow is zero to the $1.06 billion judgment (excluding post-judgment interest and possible award of class attorney fees). | ||||||||||
On September 30, 2014, the "opt-out" cases that had been consolidated with the class action lawsuit for purposes of pre-trial proceedings were remanded from the District Court to the U.S. District Court for the District of New Jersey. | ||||||||||
In addition to the matters described above, there are two separate but inter-related matters in Ontario and Quebec, Canada. In March 2014, the Superior Court of Justice in London, Ontario, ruled in favor of the plaintiffs’ motion for class certification. Dow filed its Notice of Motion for Leave to Appeal in March 2014, which was subsequently denied. The Quebec case has been stayed pending the outcome of the Ontario case. The Company has concluded it is not probable that a loss will occur and, therefore, a liability has not been recorded with respect to the opt-out litigation or the Canadian 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 product liability, patent infringement, governmental regulation, contract and commercial litigation, and other actions. Certain of these actions purport to be class actions and seek damages in very large amounts. All such claims are being contested. Dow 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. It is the opinion of the Company’s management that the possibility is remote that the aggregate of all such other claims and lawsuits will have a material adverse impact on the results of operations, financial condition and cash flows of the Company. | ||||||||||
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 $354 million in 2014, $405 million in 2013 and $304 million in 2012. The Company’s take-or-pay commitments associated with these agreements at December 31, 2014 are included in the table below. | ||||||||||
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 1 to 31 years. One agreement has a remaining term of 63 years. The 10-year future commitments for this agreement as well as the fixed and determinable portion of all other obligations under the Company's purchase commitments have been updated as of December 31, 2014 and are included in the following table: | ||||||||||
Fixed and Determinable Portion of Take-or-Pay and | ||||||||||
Throughput Obligations at December 31, 2014 | ||||||||||
In millions | ||||||||||
2015 | $ | 2,930 | ||||||||
2016 | 2,688 | |||||||||
2017 | 2,222 | |||||||||
2018 | 1,981 | |||||||||
2019 | 1,385 | |||||||||
2020 and beyond | 7,305 | |||||||||
Total | $ | 18,511 | ||||||||
In the fourth quarter of 2014, the Company redeemed its remaining 7.5 percent limited partner interest in Freeport LNG Development, L.P. in exchange for favorably amended terms related to a Terminal Use Agreement ("TUA"). The primary changes to the amended TUA include a reduction in the contract term from December 31, 2028 to December 31, 2020, and monthly fixed and variable take-or-pay payments were replaced with fixed monthly fees. As a result of these changes, Dow's fixed and determinable portion of the take-or-pay obligation was reduced by approximately $700 million and is reflected in the preceding table. | ||||||||||
In addition to the take-or-pay obligations at December 31, 2014, the Company had outstanding commitments which ranged from 1 to 11 years for materials, services and other items used in the normal course of business of approximately $346 million. Such commitments were at prices not in excess of current market prices. | ||||||||||
Guarantees | ||||||||||
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 December 31, 2014 | Final | Maximum Future | Recorded | |||||||
In millions | Expiration | Payments | Liability | |||||||
Guarantees | 2021 | $ | 5,042 | $ | 160 | |||||
Residual value guarantees | 2024 | 951 | 123 | |||||||
Total guarantees | $ | 5,993 | $ | 283 | ||||||
Guarantees at December 31, 2013 | Final | Maximum Future | Recorded | |||||||
In millions | Expiration | Payments | Liability | |||||||
Guarantees | 2021 | $ | 5,074 | $ | 137 | |||||
Residual value guarantees | 2021 | 708 | 27 | |||||||
Total guarantees | $ | 5,782 | $ | 164 | ||||||
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 relates to debt of nonconsolidated affiliates, which have expiration dates ranging from less than one year to seven 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. | ||||||||||
During 2013, the Company entered into guarantee agreements (“Guarantees”) related to project financing for Sadara Chemical Company (“Sadara”), a nonconsolidated affiliate. The total of an Islamic bond and Additional Project Financing (collectively “Total Project Financing”) obtained by Sadara is approximately $12.5 billion. Sadara had $10.5 billion of Total Project Financing outstanding at December 31, 2014 ($5.8 billion at December 31, 2013). The Company's guarantee of the Total 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 by the end of 2017. | ||||||||||
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. | ||||||||||
During the third quarter of 2014, the Company entered into a residual value guarantee as part of a sale-leaseback transaction for a significant portion of its North American railcar fleet. The maximum value of the guarantee is $229 million. The sale transaction resulted in a deferred gain of $102 million, which was recorded as a liability due to the guarantee and will be deferred until expiration of the ten-year lease unless otherwise terminated. | ||||||||||
Warranties | ||||||||||
The Company provides warranty policies on certain products and accrues liabilities under warranty policies using historical warranty claim experience. Adjustments are made to accruals as claim data and historical experience change. The following table summarizes changes in the Company's warranty liability for the years ended December 31, 2014 and 2013: | ||||||||||
Warranty Accrual | ||||||||||
In millions | 2014 | 2013 | ||||||||
Balance at January 1 | $ | 24 | $ | 44 | ||||||
Accruals related to existing warranties (1) | 104 | 2 | ||||||||
Settlements made during the year | (21 | ) | (22 | ) | ||||||
Balance at December 31 | $ | 107 | $ | 24 | ||||||
-1 | In the fourth quarter of 2014, the Company recorded a pretax charge of $100 million for a warranty accrual adjustment related to an exited business. The charge was included in "Cost of sales" in the consolidated statements of income and reflected in Infrastructure Solutions. | |||||||||
Asset Retirement Obligations | ||||||||||
Dow has 201 manufacturing sites in 35 countries. Most of these sites contain numerous individual manufacturing operations, particularly at the Company’s larger sites. Asset retirement obligations are recorded as incurred and reasonably estimable, including obligations for which the timing and/or method of settlement are conditional on a future event that may or may not be within the control of the Company. The retirement of assets may involve such efforts as remediation and treatment of asbestos, contractually required demolition, and other related activities, depending on the nature and location of the assets; and retirement obligations are typically realized only upon demolition of those facilities. In identifying asset retirement obligations, the Company considers identification of legally enforceable obligations, changes in existing law, estimates of potential settlement dates and the calculation of an appropriate discount rate to be used in calculating the fair value of the obligations. Dow has a well-established global process to identify, approve and track the demolition of retired or to-be-retired facilities; and no assets are retired from service until this process has been followed. Dow typically forecasts demolition projects based on the usefulness of the assets; environmental, health and safety concerns; and other similar considerations. Under this process, as demolition projects are identified and approved, reasonable estimates are determined for the time frames during which any related asset retirement obligations are expected to be settled. For those assets where a range of potential settlement dates may be reasonably estimated, obligations are recorded. Dow routinely reviews all changes to items under consideration for demolition to determine if an adjustment to the value of the asset retirement obligation is required. | ||||||||||
The Company has recognized asset retirement obligations for the following activities: demolition and remediation activities at manufacturing sites in the United States, Canada, Brazil, Argentina, Chile, China, Japan and Europe; and capping activities at landfill sites in the United States, Canada, Brazil and Italy. 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, Argentina, Chile, China, Japan and Europe. The aggregate carrying amount of conditional asset retirement obligations recognized by the Company (included in the asset retirement obligations balance shown below) was $28 million at December 31, 2014 ($34 million at December 31, 2013). | ||||||||||
The following table shows changes in the aggregate carrying amount of the Company’s asset retirement obligations for the years ended December 31, 2014 and 2013: | ||||||||||
Asset Retirement Obligations | ||||||||||
In millions | 2014 | 2013 | ||||||||
Balance at January 1 | $ | 89 | $ | 92 | ||||||
Additional accruals | 3 | 5 | ||||||||
Liabilities settled | (8 | ) | (2 | ) | ||||||
Accretion expense | 1 | 1 | ||||||||
Revisions in estimated cash flows | 3 | (8 | ) | |||||||
Other | (4 | ) | 1 | |||||||
Balance at December 31 | $ | 84 | $ | 89 | ||||||
The discount rate used to calculate the Company’s asset retirement obligations at December 31, 2014 was 1.48 percent (0.88 percent at December 31, 2013). 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. Assets that have not been submitted/reviewed for potential demolition activities are considered to have continued usefulness and are generally still operating normally. Therefore, without a plan to demolish the assets or the expectation of a plan, such as shortening the useful life of assets for depreciation purposes in accordance with the accounting guidance related to property, plant and equipment, the Company is unable to reasonably forecast a time frame to use for present value calculations. As such, the Company has not recognized obligations for individual plants/buildings at its manufacturing sites where estimates of potential settlement dates cannot be reasonably made. In addition, the Company has not recognized conditional asset retirement obligations for the capping of its approximately 44 underground storage wells and 138 underground brine mining and other wells at Dow-owned sites when there are no plans or expectations of plans to exit the sites. 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. On May 6, 2013, the Company and PIC entered into a Deed providing for payment and resolution 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 damages awarded of $2.161 billion as well as recovery of Dow's costs incurred in the arbitration, including legal fees. 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 | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Transfers and Servicing [Abstract] | ||||||||||||
Transfers and Servicing of Financial Assets [Text Block] | TRANSFERS OF FINANCIAL ASSETS | |||||||||||
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 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 year ended December 31, 2014, the Company recognized a loss of $16 million on the sale of these receivables ($17 million loss for the years ended December 31, 2013 and December 31, 2012), which is included in “Interest expense and amortization of debt discount” in the consolidated statements of income. | ||||||||||||
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 at December 31 | ||||||||||||
In millions | 2014 | 2013 | ||||||||||
Carrying value of interests held | $ | 1,328 | $ | 1,227 | ||||||||
Percentage of anticipated credit losses | 0.35 | % | 0.71 | % | ||||||||
Impact to carrying value - 10% adverse change | $ | 1 | $ | 1 | ||||||||
Impact to carrying value - 20% adverse change | $ | 2 | $ | 2 | ||||||||
Credit losses, net of any recoveries, were $7 million for the year ended December 31, 2014 ($1 million for the year ended December 31, 2013, and $1 million for the year ended December 31, 2012). | ||||||||||||
Following is an analysis of certain cash flows between the Company and the conduits: | ||||||||||||
Cash Proceeds | ||||||||||||
In millions | 2014 | 2013 | 2012 | |||||||||
Sale of receivables | $ | 98 | $ | 34 | $ | 57 | ||||||
Collections reinvested in revolving receivables | $ | 26,479 | $ | 25,864 | $ | 25,828 | ||||||
Interests in conduits (1) | $ | 1,079 | $ | 1,028 | $ | 2,650 | ||||||
(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 at December 31 | ||||||||||||
In millions | 2014 | 2013 | ||||||||||
Delinquencies on sold receivables still outstanding | $ | 133 | $ | 138 | ||||||||
Trade accounts receivable outstanding and derecognized | $ | 2,607 | $ | 2,494 | ||||||||
In 2013, the Company repurchased $10 million of previously sold receivables related to divestitures. |
NOTES_PAYABLE_LONGTERM_DEBT_AN
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||
Debt Disclosure [Text Block] | NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES | ||||||||||||||
Notes Payable at December 31 | 2014 | 2013 | |||||||||||||
In millions | |||||||||||||||
Notes payable to banks and other lenders | $ | 353 | $ | 300 | |||||||||||
Notes payable to related companies | 189 | 137 | |||||||||||||
Notes payable trade | 9 | 6 | |||||||||||||
Total notes payable | $ | 551 | $ | 443 | |||||||||||
Year-end average interest rates | 4.08 | % | 3.23 | % | |||||||||||
Long-Term Debt at December 31 | 2014 | 2014 | 2013 | 2013 | |||||||||||
Average | Average | ||||||||||||||
In millions | Rate | Rate | |||||||||||||
Promissory notes and debentures: | |||||||||||||||
Final maturity 2014 | — | $ | — | 5.33 | % | $ | 399 | ||||||||
Final maturity 2015 | 2.74 | % | 60 | 2.89 | % | 56 | |||||||||
Final maturity 2016 | 2.52 | % | 805 | 2.53 | % | 805 | |||||||||
Final maturity 2017 | 5.66 | % | 489 | 5.65 | % | 491 | |||||||||
Final maturity 2018 | 5.44 | % | 567 | 5.43 | % | 570 | |||||||||
Final maturity 2019 | 8.41 | % | 2,168 | 8.4 | % | 2,171 | |||||||||
Final maturity 2020 and thereafter | 5.16 | % | 12,063 | 5.41 | % | 10,029 | |||||||||
Other facilities: | |||||||||||||||
U.S. dollar loans, various rates and maturities | 1.38 | % | 461 | 1.44 | % | 490 | |||||||||
Foreign currency loans, various rates and maturities | 3.01 | % | 1,013 | 3.18 | % | 1,140 | |||||||||
Medium-term notes, varying maturities through 2024 | 3.55 | % | 1,528 | 3.76 | % | 1,143 | |||||||||
Tax-exempt bonds, varying maturities through 2038 | 5.66 | % | 343 | 5.59 | % | 518 | |||||||||
Capital lease obligations | — | 85 | — | 41 | |||||||||||
Unamortized debt discount | — | (350 | ) | — | (336 | ) | |||||||||
Long-term debt due within one year | — | (394 | ) | — | (697 | ) | |||||||||
Long-term debt | — | $ | 18,838 | — | $ | 16,820 | |||||||||
Annual Installments on Long-Term Debt | |||||||||||||||
for Next Five Years | |||||||||||||||
In millions | |||||||||||||||
2015 | $ | 394 | |||||||||||||
2016 | $ | 1,375 | |||||||||||||
2017 | $ | 778 | |||||||||||||
2018 | $ | 932 | |||||||||||||
2019 | $ | 2,578 | |||||||||||||
2014 Activity | |||||||||||||||
On September 16, 2014, the Company issued $2 billion of senior unsecured notes in a public offering. The offering included $900 million aggregate principal amount of 3.5 percent notes due 2024; $600 million aggregate principal amount of 4.25 percent notes due 2034; and $500 million aggregate principal amount of 4.625 percent notes due 2044. | |||||||||||||||
During 2014, the Company issued $390 million aggregate principal amount of InterNotes with varying maturities in 2019, 2021 and 2024, at various interest rates averaging 2.94 percent. The Company also repaid $346 million of long-term debt related to the purchase of an ethylene production facility (see Note 19 for additional information), redeemed $124 million of tax-exempt bonds at maturity and repurchased $51 million of tax-exempt bonds. In addition, approximately $97 million of long-term debt (net of $69 million of additional borrowings) was repaid by consolidated variable interest entities. | |||||||||||||||
2013 Activity | |||||||||||||||
On November 18, 2013, the Company concluded cash tender offers for $700 million aggregate principal amount of certain notes issued by the Company. As a result of the tender offers, the Company redeemed $414 million of 6.0 percent notes due 2017 and $286 million of 5.7 percent notes due 2018 and recognized a $156 million 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 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 2013, the Company issued $447 million aggregate principal amount of InterNotes with varying maturities in 2018, 2020 and 2023, at various interest rates averaging 3.24 percent; and approximately $80 million of long-term debt (net of $119 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. | |||||||||||||||
During 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 tax-exempt bonds. The Company also acquired third party lenders’ interest in Dow Kokam LLC’s $75 million note, which was previously classified as “Long-Term Debt” in the consolidated balance sheets. See Note 5 for additional information on this transaction. | |||||||||||||||
2012 Activity | |||||||||||||||
On December 17, 2012, the Company redeemed $1.0 billion aggregate principal amount of 7.6 percent notes due May 15, 2014, at a price of 109.6 percent of the principal amount of the notes, plus accrued and unpaid interest. As a result of this redemption, the Company realized a $99 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 November 14, 2012, the Company issued $2.5 billion of senior unsecured notes in a public offering. The offering included $1.25 billion aggregate principal amount of 3.0 percent notes due 2022 and $1.25 billion aggregate principal amount of 4.375 percent notes due 2042. | |||||||||||||||
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 2012, the Company issued $281 million aggregate principal amount of InterNotes with varying maturities in 2017, 2019 and 2022, at various interest rates averaging 2.95 percent; and approximately $367 million of long-term debt was entered into by consolidated variable interest entities. | |||||||||||||||
During 2012, the Company redeemed $37 million of tax-exempt bonds that matured on January 1, 2012, repurchased $105 million of tax-exempt bonds that were subject to re-marketing; redeemed Euro 253 million of notes that matured on September 19, 2012 ($317 million equivalent); and redeemed $900 million of notes that matured on October 1, 2012. | |||||||||||||||
Available Credit Facilities | |||||||||||||||
The following table summarizes the Company's credit facilities: | |||||||||||||||
Committed and Available Credit Facilities at December 31, 2014 | |||||||||||||||
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-15 | 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 | ||||||||||
Bilateral Revolving Credit Facility | Oct-13 | 200 | 200 | Oct-16 | Floating rate | ||||||||||
Bilateral Revolving Credit Facility | Oct-13 | 100 | 100 | Oct-16 | Floating rate | ||||||||||
Bilateral Revolving Credit Facility | Jan-14 | 100 | 100 | Oct-16 | Floating rate | ||||||||||
Total Committed and Available Credit Facilities | $ | 6,470 | $ | 6,170 | |||||||||||
Debt Covenants and Default Provisions | |||||||||||||||
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. |
PENSION_PLANS_AND_OTHER_POSTRE
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||
Pension and Other Postretirement Benefits Disclosure [Text Block] | PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | ||||||||||||||||||||||||
Pension Plans | |||||||||||||||||||||||||
The Company has defined benefit pension plans that cover employees in the United States and a number of other countries. The U.S. qualified plan covering the parent company is the largest plan. Benefits for employees hired before January 1, 2008 are based on length of service and the employee’s three highest consecutive years of compensation. Employees hired after January 1, 2008 earn benefits that are based on a set percentage of annual pay, plus interest. | |||||||||||||||||||||||||
The Company’s funding policy is to contribute to the plans when pension laws and/or economics either require or encourage funding. In 2014, Dow contributed $815 million to its pension plans, including contributions to fund benefit payments for its non-qualified supplemental plans. Dow expects to contribute approximately $750 million to its pension plans in 2015. | |||||||||||||||||||||||||
The weighted-average assumptions used to determine pension plan obligations and net periodic benefit costs for the plans are provided in the two tables below: | |||||||||||||||||||||||||
Weighted-Average Assumptions | Benefit Obligations | Net Periodic Costs | |||||||||||||||||||||||
for All Pension Plans | at December 31 | for the Year | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Discount rate | 3.6 | % | 4.54 | % | 3.88 | % | 4.54 | % | 3.88 | % | 4.93 | % | |||||||||||||
Rate of increase in future compensation levels | 4.13 | % | 4.15 | % | 3.96 | % | 4.15 | % | 3.96 | % | 4.14 | % | |||||||||||||
Expected long-term rate of return on plan assets | — | — | — | 7.4 | % | 7.47 | % | 7.6 | % | ||||||||||||||||
Weighted-Average Assumptions | Benefit Obligations | Net Periodic Costs | |||||||||||||||||||||||
for U.S. Pension Plans | at December 31 | for the Year | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Discount rate | 4.04 | % | 4.92 | % | 4.02 | % | 4.92 | % | 4.02 | % | 4.98 | % | |||||||||||||
Rate of increase in future compensation levels | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | |||||||||||||
Expected long-term rate of return on plan assets | — | — | — | 7.82 | % | 7.85 | % | 7.83 | % | ||||||||||||||||
The Company determines the expected long-term rate of return on plan assets by performing a detailed analysis of key economic and market factors driving historical returns for each asset class and formulating a projected return based on factors in the current environment. Factors considered include, but are not limited to, inflation, real economic growth, interest rate yield, interest rate spreads, and other valuation measures and market metrics. The expected long-term rate of return for each asset class is then weighted based on the strategic asset allocation approved by the governing body for each plan. The Company’s historical experience with the pension fund asset performance is also considered. The discount rates utilized to measure the pension and other postretirement obligations of the U.S. qualified plans are based on the yield on high-quality fixed income investments at the measurement date. Future expected actuarially determined cash flows of Dow’s major U.S. plans are matched against the Towers Watson RATE:Link yield curve (based on 60th to 90th percentile bond yields) to arrive at a single discount rate for each plan. | |||||||||||||||||||||||||
On October 27, 2014, the Society of Actuaries ("SOA") published updated mortality tables and mortality improvement scales (generational mortality tables), which reflect increased life expectancy. Based on an evaluation of the mortality experience of the Company's U.S. pension plans and the SOA's tables, the Company adopted updated generational mortality tables for purposes of measuring U.S. pension and other postretirement obligations at year-end. The mortality assumption change increased pension and other postretirement benefit obligations by $479 million at December 31, 2014. | |||||||||||||||||||||||||
The accumulated benefit obligation for all defined benefit pension plans was $26.5 billion at December 31, 2014 and $23.8 billion at December 31, 2013. | |||||||||||||||||||||||||
Pension Plans with Accumulated Benefit Obligations in Excess | |||||||||||||||||||||||||
of Plan Assets at December 31 | |||||||||||||||||||||||||
In millions | 2014 | 2013 | |||||||||||||||||||||||
Projected benefit obligations | $ | 25,539 | $ | 22,565 | |||||||||||||||||||||
Accumulated benefit obligations | $ | 24,281 | $ | 21,554 | |||||||||||||||||||||
Fair value of plan assets | $ | 16,932 | $ | 16,247 | |||||||||||||||||||||
In addition to the U.S. qualified defined benefit pension plan, U.S. employees may participate in defined contribution plans (Employee Savings Plans or 401(k) plans) by contributing a portion of their compensation, which is partially matched by the Company. Defined contribution plans also cover employees in some subsidiaries in other countries, including Australia, Brazil, Canada, Italy, Spain and the United Kingdom. Expense recognized for all defined contribution plans was $243 million in 2014, $231 million in 2013 and $186 million in 2012. | |||||||||||||||||||||||||
Other Postretirement Benefits | |||||||||||||||||||||||||
The Company provides certain health care and life insurance benefits to retired employees. The Company’s plans outside of the United States are not significant; therefore, this discussion relates to the U.S. plans only. The plans provide health care benefits, including hospital, physicians’ services, drug and major medical expense coverage, and life insurance benefits. In general, for employees hired before January 1, 1993, the plans provide benefits supplemental to Medicare when retirees are eligible for these benefits. The Company and the retiree share the cost of these benefits, with the Company portion increasing as the retiree has increased years of credited service, although there is a cap on the Company portion. The Company has the ability to change these benefits at any time. Employees hired after January 1, 2008 are not covered under the plans. | |||||||||||||||||||||||||
On January 1, 2014, the Company implemented an Employer Group Waiver Plan (“EGWP”) for its Medicare-eligible, retiree medical plan participants. The Medicare Part D Retiree Drug Subsidy program (“RDS”) was eliminated on January 1, 2014. The EGWP does not significantly alter the benefits provided to retiree medical plan participants. Federal subsidies to be earned under the EGWP are expected to exceed those earned under the RDS and will be partially offset by increased costs related to the administration of the EGWP. The formation of the EGWP and the resulting change in assumption generated an actuarial gain of $250 million at December 31, 2013, included in "Accumulated other comprehensive loss" in the consolidated balance sheets. The Company also recognized a reduction in the postretirement benefit obligation of $250 million at December 31, 2013. The net periodic benefit cost decreased by $25 million in 2014 due to the EGWP. | |||||||||||||||||||||||||
The Company funds most of the cost of these health care and life insurance benefits as incurred. In 2014, Dow did not make any contributions to its other postretirement benefit plan trusts. The trusts did not hold assets at December 31, 2014. Dow does not expect to contribute assets to its other postretirement benefits plan trusts in 2015. | |||||||||||||||||||||||||
The weighted-average assumptions used to determine other postretirement benefit obligations and net periodic benefit costs for the U.S. plans are provided below: | |||||||||||||||||||||||||
U.S. Plan Assumptions for Other | Benefit Obligations | Net Periodic Costs | |||||||||||||||||||||||
Postretirement Benefits | at December 31 | for the Year | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Discount rate | 3.68 | % | 4.37 | % | 3.67 | % | 4.37 | % | 3.67 | % | 4.66 | % | |||||||||||||
Expected long-term rate of return on plan assets | — | % | — | % | — | % | — | % | — | % | 1 | % | |||||||||||||
Initial health care cost trend rate | 7.06 | % | 7.45 | % | 7.84 | % | 7.45 | % | 7.84 | % | 8.28 | % | |||||||||||||
Ultimate health care cost trend rate | 5 | % | 5 | % | 5 | % | 5 | % | 5 | % | 5 | % | |||||||||||||
Year ultimate trend rate to be reached | 2020 | 2020 | 2019 | 2020 | 2020 | 2019 | |||||||||||||||||||
Increasing the assumed medical cost trend rate by one percentage point in each year would decrease the accumulated postretirement benefit obligation at December 31, 2014 by $16 million and decrease the net periodic postretirement benefit cost for the year by $2 million. Decreasing the assumed medical cost trend rate by one percentage point in each year would increase the accumulated postretirement benefit obligation at December 31, 2014 by $10 million and the net periodic postretirement benefit cost for the year by $2 million. | |||||||||||||||||||||||||
Net Periodic Benefit Cost for All Significant Plans | |||||||||||||||||||||||||
Defined Benefit Pension Plans | Other Postretirement Benefits | ||||||||||||||||||||||||
In millions | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 411 | $ | 471 | $ | 378 | $ | 14 | $ | 19 | $ | 17 | |||||||||||||
Interest cost | 1,096 | 1,012 | 1,093 | 72 | 78 | 92 | |||||||||||||||||||
Expected return on plan assets | (1,322 | ) | (1,248 | ) | (1,262 | ) | — | — | (1 | ) | |||||||||||||||
Amortization of prior service cost (credit) | 22 | 25 | 26 | (2 | ) | (4 | ) | (4 | ) | ||||||||||||||||
Amortization of unrecognized (gain) loss | 500 | 788 | 519 | (14 | ) | 4 | 1 | ||||||||||||||||||
Curtailment/settlement/other (1) (2) (3) | (2 | ) | 5 | — | — | — | 9 | ||||||||||||||||||
Net periodic benefit cost | $ | 705 | $ | 1,053 | $ | 754 | $ | 70 | $ | 97 | $ | 114 | |||||||||||||
-1 | Included $9 million of curtailment costs recorded in 2012 related to the 4Q12 Restructuring plan (see Note 3). | ||||||||||||||||||||||||
-2 | The 2013 impact primarily relates to settlements associated with the wind-up of a Canadian pension plan. | ||||||||||||||||||||||||
-3 | The 2014 impact relates to settlements associated with the wind-up of a pension plan in The Netherlands and a pension plan in Canada. | ||||||||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss | |||||||||||||||||||||||||
for All Significant Plans | |||||||||||||||||||||||||
Defined Benefit Pension Plans | Other Postretirement Benefits | ||||||||||||||||||||||||
In millions | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Net (gain) loss | $ | 3,528 | $ | (2,343 | ) | $ | 3,135 | $ | 63 | $ | (404 | ) | $ | 163 | |||||||||||
Prior service credit arising during period | (500 | ) | — | — | — | — | — | ||||||||||||||||||
Amortization of prior service (cost) credit | (22 | ) | (25 | ) | (26 | ) | 2 | 4 | 4 | ||||||||||||||||
Amortization of unrecognized gain (loss) | (498 | ) | (793 | ) | (519 | ) | 14 | (4 | ) | (1 | ) | ||||||||||||||
Total recognized in other comprehensive (income) loss | $ | 2,508 | $ | (3,161 | ) | $ | 2,590 | $ | 79 | $ | (404 | ) | $ | 166 | |||||||||||
Total recognized in net periodic benefit cost and other comprehensive (income) loss | $ | 3,213 | $ | (2,108 | ) | $ | 3,344 | $ | 149 | $ | (307 | ) | $ | 280 | |||||||||||
Change in Projected Benefit Obligations, Plan Assets and Funded Status of All Significant Plans | |||||||||||||||||||||||||
In millions | Defined | Other Postretirement Benefits | |||||||||||||||||||||||
Benefit Pension Plans | |||||||||||||||||||||||||
Change in projected benefit obligations: | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Benefit obligations at beginning of year | $ | 25,027 | $ | 26,840 | $ | 1,742 | $ | 2,210 | |||||||||||||||||
Service cost | 411 | 471 | 14 | 19 | |||||||||||||||||||||
Interest cost | 1,096 | 1,012 | 72 | 78 | |||||||||||||||||||||
Plan participants’ contributions | 21 | 17 | — | — | |||||||||||||||||||||
Plan amendments (1) | (500 | ) | — | — | — | ||||||||||||||||||||
Actuarial changes in assumptions and experience | 4,096 | (2,029 | ) | 63 | (401 | ) | |||||||||||||||||||
Acquisition/divestiture/other activity | (1 | ) | — | — | — | ||||||||||||||||||||
Benefits paid | (1,316 | ) | (1,322 | ) | (169 | ) | (156 | ) | |||||||||||||||||
Currency impact | (779 | ) | 123 | (15 | ) | (8 | ) | ||||||||||||||||||
Termination benefits/curtailment cost/settlements (2) (3) | (76 | ) | (85 | ) | — | — | |||||||||||||||||||
Benefit obligations at end of year | $ | 27,979 | $ | 25,027 | $ | 1,707 | $ | 1,742 | |||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 18,827 | $ | 17,725 | $ | — | $ | 65 | |||||||||||||||||
Actual return on plan assets | 1,961 | 1,548 | — | — | |||||||||||||||||||||
Currency impact | (593 | ) | 85 | — | — | ||||||||||||||||||||
Employer contributions | 815 | 865 | — | — | |||||||||||||||||||||
Plan participants’ contributions | 21 | 17 | — | — | |||||||||||||||||||||
Acquisition/divestiture/other activity | (86 | ) | (91 | ) | — | — | |||||||||||||||||||
Benefits paid | (1,316 | ) | (1,322 | ) | — | (65 | ) | ||||||||||||||||||
Fair value of plan assets at end of year | $ | 19,629 | $ | 18,827 | $ | — | $ | — | |||||||||||||||||
Funded status at end of year | $ | (8,350 | ) | $ | (6,200 | ) | $ | (1,707 | ) | $ | (1,742 | ) | |||||||||||||
Net amounts recognized in the consolidated balance sheets at December 31: | |||||||||||||||||||||||||
Noncurrent assets | $ | 263 | $ | 139 | $ | — | $ | — | |||||||||||||||||
Current liabilities | (68 | ) | (66 | ) | (147 | ) | (157 | ) | |||||||||||||||||
Noncurrent liabilities | (8,545 | ) | (6,273 | ) | (1,560 | ) | (1,585 | ) | |||||||||||||||||
Net amounts recognized in the consolidated balance sheets | $ | (8,350 | ) | $ | (6,200 | ) | $ | (1,707 | ) | $ | (1,742 | ) | |||||||||||||
Pretax amounts recognized in AOCL at December 31: | |||||||||||||||||||||||||
Net loss (gain) | $ | 10,345 | $ | 7,815 | $ | (176 | ) | $ | (253 | ) | |||||||||||||||
Prior service cost (credit) | 81 | 103 | (5 | ) | (7 | ) | |||||||||||||||||||
Pretax balance in AOCL at end of year | $ | 10,426 | $ | 7,918 | $ | (181 | ) | $ | (260 | ) | |||||||||||||||
-1 | The 2014 plan amendments include a change in post-termination interest rates in the U.S. and new legislation in The Netherlands. | ||||||||||||||||||||||||
-2 | The 2013 impact primarily relates to settlements associated with the wind-up of a Canadian pension plan. | ||||||||||||||||||||||||
-3 | The 2014 impact relates to settlements associated with the wind-up of a pension plan in The Netherlands and a pension plan in Canada. | ||||||||||||||||||||||||
In 2015, an estimated net loss of $744 million and prior service credit of $29 million for the defined benefit pension plans will be amortized from AOCL to net periodic benefit cost. In 2015, an estimated net gain of $11 million and prior service credit of $2 million for other postretirement benefit plans will be amortized from AOCL to net periodic benefit cost. | |||||||||||||||||||||||||
Estimated Future Benefit Payments | |||||||||||||||||||||||||
The estimated future benefit payments, reflecting expected future service, as appropriate, are presented in the following table: | |||||||||||||||||||||||||
Estimated Future Benefit Payments at December 31, 2014 | |||||||||||||||||||||||||
In millions | Defined Benefit Pension Plans | Other Postretirement Benefits | |||||||||||||||||||||||
2015 | $ | 1,270 | $ | 150 | |||||||||||||||||||||
2016 | 1,284 | 140 | |||||||||||||||||||||||
2017 | 1,314 | 134 | |||||||||||||||||||||||
2018 | 1,359 | 133 | |||||||||||||||||||||||
2019 | 1,401 | 129 | |||||||||||||||||||||||
2020 through 2024 | 7,554 | 589 | |||||||||||||||||||||||
Total | $ | 14,182 | $ | 1,275 | |||||||||||||||||||||
Plan Assets | |||||||||||||||||||||||||
Plan assets consist primarily of equity and fixed income securities of U.S. and foreign issuers, and include alternative investments such as real estate, private equity and absolute return strategies. At December 31, 2014, plan assets totaled $19.6 billion and included no Company common stock. At December 31, 2013, plan assets totaled $18.8 billion and included no Company common stock. In 2013, the Company received $32 million from residual plan assets after the completion of a non-U.S. pension plan wind-up. | |||||||||||||||||||||||||
Investment Strategy and Risk Management for Plan Assets | |||||||||||||||||||||||||
The Company’s investment strategy for the plan assets is to manage the assets in relation to the liability in order to pay retirement benefits to plan participants over the life of the plans. This is accomplished by identifying and managing the exposure to various market risks, diversifying investments across various asset classes and earning an acceptable long-term rate of return consistent with an acceptable amount of risk, while considering the liquidity needs of the plans. | |||||||||||||||||||||||||
The plans are permitted to use derivative instruments for investment purposes, as well as for hedging the underlying asset and liability exposure and rebalancing the asset allocation. The plans use value at risk, stress testing, scenario analysis and Monte Carlo simulations to monitor and manage both the risk within the portfolios and the surplus risk of the plans. | |||||||||||||||||||||||||
Equity securities primarily include investments in large- and small-cap companies located in both developed and emerging markets around the world. Fixed income securities include investment and non-investment grade corporate bonds of companies diversified across industries, U.S. treasuries, non-U.S. developed market securities, U.S. agency mortgage-backed securities, emerging market securities and fixed income related funds. Alternative investments primarily include investments in real estate, private equity limited partnerships and absolute return strategies. Other significant investment types include various insurance contracts; and interest rate, equity, commodity and foreign exchange derivative investments and hedges. | |||||||||||||||||||||||||
Strategic Weighted-Average Target Allocation of Plan | |||||||||||||||||||||||||
Assets for All Significant Plans | |||||||||||||||||||||||||
Asset Category | Target Allocation | ||||||||||||||||||||||||
Equity securities | 34 | % | |||||||||||||||||||||||
Fixed income securities | 35 | % | |||||||||||||||||||||||
Alternative investments | 30 | % | |||||||||||||||||||||||
Other investments | 1 | % | |||||||||||||||||||||||
Total | 100 | % | |||||||||||||||||||||||
Concentration of Risk | |||||||||||||||||||||||||
The Company mitigates the credit risk of investments by establishing guidelines with investment managers that limit investment in any single issue or issuer to an amount that is not material to the portfolio being managed. These guidelines are monitored for compliance both by the Company and external managers. Credit risk related to derivative activity is mitigated by utilizing multiple counterparties, collateral support agreements and centralized clearing, where appropriate. | |||||||||||||||||||||||||
The Northern Trust Collective Government Short Term Investment money market fund is utilized as the sweep vehicle for the U.S. plans, which from time to time can represent a significant investment. For one U.S. plan, approximately half of the liability is covered by a participating group annuity issued by Prudential Insurance Company. | |||||||||||||||||||||||||
The following tables summarize the bases used to measure the Company’s pension plan assets at fair value for the years ended December 31, 2014 and 2013: | |||||||||||||||||||||||||
Basis of Fair Value Measurements of | Quoted Prices | Significant | Significant | ||||||||||||||||||||||
Pension Plan Assets at December 31, 2014 | in Active | Other | Unobservable | ||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||
Identical Items | Inputs | ||||||||||||||||||||||||
In millions | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | 61 | $ | 953 | $ | — | $ | 1,014 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. equity (1) | $ | 3,011 | $ | 428 | $ | 9 | $ | 3,448 | |||||||||||||||||
Non-U.S. equity – developed countries | 1,814 | 1,410 | — | 3,224 | |||||||||||||||||||||
Emerging markets | 472 | 538 | 23 | 1,033 | |||||||||||||||||||||
Convertible bonds | 15 | 195 | — | 210 | |||||||||||||||||||||
Equity derivatives | — | 7 | — | 7 | |||||||||||||||||||||
Total equity securities | $ | 5,312 | $ | 2,578 | $ | 32 | $ | 7,922 | |||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||
U.S. government and municipalities | $ | — | $ | 1,406 | $ | — | $ | 1,406 | |||||||||||||||||
U.S. agency and agency mortgage-backed securities | — | 310 | — | 310 | |||||||||||||||||||||
Corporate bonds – investment grade | — | 1,605 | — | 1,605 | |||||||||||||||||||||
Non-U.S. governments – developed countries | — | 1,212 | — | 1,212 | |||||||||||||||||||||
Non-U.S. corporate bonds – developed countries | — | 961 | — | 961 | |||||||||||||||||||||
Emerging market debt | — | 93 | — | 93 | |||||||||||||||||||||
Other asset-backed securities | — | 105 | 1 | 106 | |||||||||||||||||||||
High yield bonds | — | 168 | 16 | 184 | |||||||||||||||||||||
Other fixed income funds | — | 299 | 294 | 593 | |||||||||||||||||||||
Fixed income derivatives | — | 31 | — | 31 | |||||||||||||||||||||
Total fixed income securities | $ | — | $ | 6,190 | $ | 311 | $ | 6,501 | |||||||||||||||||
Alternative investments: | |||||||||||||||||||||||||
Real estate | $ | 31 | $ | 36 | $ | 1,627 | $ | 1,694 | |||||||||||||||||
Private equity | — | — | 1,059 | 1,059 | |||||||||||||||||||||
Absolute return | — | 586 | 656 | 1,242 | |||||||||||||||||||||
Total alternative investments | $ | 31 | $ | 622 | $ | 3,342 | $ | 3,995 | |||||||||||||||||
Other investments | $ | — | $ | 157 | $ | 40 | $ | 197 | |||||||||||||||||
Total pension plan assets at fair value | $ | 5,404 | $ | 10,500 | $ | 3,725 | $ | 19,629 | |||||||||||||||||
(1) Includes no Company common stock. | |||||||||||||||||||||||||
Basis of Fair Value Measurements of | Quoted Prices | Significant | Significant | ||||||||||||||||||||||
Pension Plan Assets at December 31, 2013 | in Active | Other | Unobservable | ||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||
Identical Items | Inputs | ||||||||||||||||||||||||
In millions | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | 83 | $ | 1,179 | $ | — | $ | 1,262 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. equity (1) | $ | 2,759 | $ | 695 | $ | — | $ | 3,454 | |||||||||||||||||
Non-U.S. equity – developed countries | 2,014 | 1,122 | 2 | 3,138 | |||||||||||||||||||||
Emerging markets | 648 | 574 | 10 | 1,232 | |||||||||||||||||||||
Convertible bonds | 23 | 326 | — | 349 | |||||||||||||||||||||
Equity derivatives | 5 | (27 | ) | — | (22 | ) | |||||||||||||||||||
Total equity securities | $ | 5,449 | $ | 2,690 | $ | 12 | $ | 8,151 | |||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||
U.S. government and municipalities | $ | — | $ | 1,154 | $ | — | $ | 1,154 | |||||||||||||||||
U.S. agency and agency mortgage-backed securities | — | 313 | — | 313 | |||||||||||||||||||||
Corporate bonds – investment grade | — | 1,397 | — | 1,397 | |||||||||||||||||||||
Non-U.S. governments – developed countries | — | 1,075 | — | 1,075 | |||||||||||||||||||||
Non-U.S. corporate bonds – developed countries | — | 838 | 2 | 840 | |||||||||||||||||||||
Emerging market debt | — | 106 | — | 106 | |||||||||||||||||||||
Other asset-backed securities | — | 113 | 15 | 128 | |||||||||||||||||||||
High yield bonds | — | 178 | 20 | 198 | |||||||||||||||||||||
Other fixed income funds | — | 243 | 200 | 443 | |||||||||||||||||||||
Fixed income derivatives | (1 | ) | (31 | ) | — | (32 | ) | ||||||||||||||||||
Total fixed income securities | $ | (1 | ) | $ | 5,386 | $ | 237 | $ | 5,622 | ||||||||||||||||
Alternative investments: | |||||||||||||||||||||||||
Real estate | $ | 30 | $ | 33 | $ | 1,338 | $ | 1,401 | |||||||||||||||||
Private equity | — | — | 1,017 | 1,017 | |||||||||||||||||||||
Absolute return | — | 611 | 406 | 1,017 | |||||||||||||||||||||
Total alternative investments | $ | 30 | $ | 644 | $ | 2,761 | $ | 3,435 | |||||||||||||||||
Other investments | $ | — | $ | 317 | $ | 40 | $ | 357 | |||||||||||||||||
Total pension plan assets at fair value | $ | 5,561 | $ | 10,216 | $ | 3,050 | $ | 18,827 | |||||||||||||||||
(1) Includes no Company common stock. | |||||||||||||||||||||||||
For pension plan assets classified as Level 1 measurements (measured using quoted prices in active markets), total fair value is either the price of the most recent trade at the time of the market close or the official close price, as defined by the exchange on which the asset is most actively traded on the last trading day of the period, multiplied by the number of units held without consideration of transaction costs. | |||||||||||||||||||||||||
For pension or other postretirement benefit plan assets classified as Level 2 measurements, where the security is frequently traded in less active markets, fair value is based on the closing price at the end of the period; where the security is less frequently traded, fair value is based on the price a dealer would pay for the security or similar securities, adjusted for any terms specific to that asset or liability. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance and quality checks. For derivative assets and liabilities, standard industry models are used to calculate the fair value of the various financial instruments based on significant observable market inputs, such as foreign exchange rates, commodity prices, swap rates, interest rates and implied volatilities obtained from various market sources. | |||||||||||||||||||||||||
Some pension plan assets are held in funds where a net asset value is calculated based on the fair value of the underlying assets and the number of shares owned. The classification of the fund (Level 2 or 3 measurements) is determined based on the lowest level classification of significant holdings within the fund. For all other pension plan assets for which observable inputs are used, fair value is derived through the use of fair value models, such as a discounted cash flow model or other standard pricing models. | |||||||||||||||||||||||||
For pension plan assets classified as Level 3 measurements, total fair value is based on significant unobservable inputs including assumptions where there is little, if any, market activity for the investment. Investment managers or fund managers provide valuations of the investment on a monthly or quarterly basis. These valuations are reviewed for reasonableness based on applicable sector, benchmark and company performance. Adjustments to valuations are made where appropriate. Where available, audited financial statements are obtained and reviewed for the investments as support for the manager’s investment valuation. | |||||||||||||||||||||||||
The following table summarizes the changes in fair value of Level 3 pension plan assets for the years ended December 31, 2013 and 2014: | |||||||||||||||||||||||||
Fair Value Measurement of Level 3 | Equity Securities | Fixed Income Securities | Alternative Investments | Other Investments | Total | ||||||||||||||||||||
Pension Plan Assets | |||||||||||||||||||||||||
In millions | |||||||||||||||||||||||||
Balance at January 1, 2013 | $ | 13 | $ | 258 | $ | 2,515 | $ | 42 | $ | 2,828 | |||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||
Relating to assets sold during 2013 | — | 42 | 176 | — | 218 | ||||||||||||||||||||
Relating to assets held at Dec 31, 2013 | — | (32 | ) | 67 | (1 | ) | 34 | ||||||||||||||||||
Purchases, sales and settlements | 2 | (27 | ) | (5 | ) | (1 | ) | (31 | ) | ||||||||||||||||
Transfers out of Level 3, net | (3 | ) | (2 | ) | — | — | (5 | ) | |||||||||||||||||
Foreign currency impact | — | (2 | ) | 8 | — | 6 | |||||||||||||||||||
Balance at December 31, 2013 | $ | 12 | $ | 237 | $ | 2,761 | $ | 40 | $ | 3,050 | |||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||
Relating to assets sold during 2014 | — | 22 | 139 | — | 161 | ||||||||||||||||||||
Relating to assets held at Dec 31, 2014 | (12 | ) | (7 | ) | 191 | 1 | 173 | ||||||||||||||||||
Purchases, sales and settlements | 32 | 63 | 300 | (1 | ) | 394 | |||||||||||||||||||
Transfers out of Level 3, net | — | (3 | ) | — | — | (3 | ) | ||||||||||||||||||
Foreign currency impact | — | (1 | ) | (49 | ) | — | (50 | ) | |||||||||||||||||
Balance at December 31, 2014 | $ | 32 | $ | 311 | $ | 3,342 | $ | 40 | $ | 3,725 | |||||||||||||||
LEASED_PROPERTY
LEASED PROPERTY | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Leases [Abstract] | ||||
Leases of Lessee Disclosure [Text Block] | LEASED PROPERTY | |||
Leased Property | ||||
The Company routinely leases premises for use as sales and administrative offices, warehouses and tanks for product storage, motor vehicles, railcars, computers, office machines and equipment under leases. In addition, the Company leases aircraft in the United States. At the termination of the leases, the Company has the option to purchase certain leased equipment and buildings based on a fair market value determination. | ||||
Rental expenses under leases, net of sublease rental income, were $539 million in 2014, $490 million in 2013 and $476 million in 2012. Future minimum rental payments under leases with remaining noncancelable terms in excess of one year are as follows: | ||||
Minimum Lease Commitments at December 31, 2014 | ||||
In millions | ||||
2015 | $ | 294 | ||
2016 | 275 | |||
2017 | 241 | |||
2018 | 199 | |||
2019 | 188 | |||
2020 and thereafter | 1,837 | |||
Total | $ | 3,034 | ||
VARIABLE_INTEREST_ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
VARIABLE INTEREST ENTITIES [Abstract] | |||||||||
Variable Interest Entities Disclosure [Text Block] | VARIABLE INTEREST ENTITIES | ||||||||
Consolidated Variable Interest Entities | |||||||||
The Company holds a variable interest in eight joint ventures for which the Company is the primary beneficiary. | |||||||||
Three 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. | |||||||||
The fourth joint venture owns and operates a membrane chlor-alkali manufacturing facility 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 provides the joint venture with operation and maintenance services, utilities and raw materials; markets the joint venture’s co-products; and converts the other partner’s proportional purchase commitments into ethylene dichloride under a tolling arrangement. The joint venture successfully initiated full-scale, commercial production in the first quarter of 2014. | |||||||||
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. 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's variable interests in this joint venture relate to an equity option between the partners, a parental loan and guarantee related to debt financing, and contractual arrangements limiting the partner's initial participation in the economics of certain assets and liabilities. Since formation of the joint venture, the partners have amended the governing documents, including terms of the equity option. These amendments did 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 2015. Original plans for the joint venture's expansion into downstream derivative products have been postponed. This joint venture also holds variable interests in an entity that will construct and own a cogeneration facility. The joint venture's variable interests are the result of a tolling arrangement where it provides fuel to the entity and purchases a majority of the cogeneration facility’s output on terms that ensure a return to the entity’s equity holders. | |||||||||
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 previously held a variable interest in an owner trust, for which the Company was the primary beneficiary. The owner trust leased an ethylene production facility in The Netherlands to the Company, whereby substantially all of the rights and obligations of ownership were transferred to the Company. The Company’s variable interest in the owner trust related to a fixed purchase price option. On January 2, 2014, the Company purchased the ethylene production facility for $406 million. The Company classified $346 million as "Payments on long-term debt" and $60 million as "Purchases of noncontrolling interests" in the consolidated statements of cash flows. | |||||||||
The Company's consolidated financial statements include the assets, liabilities and results of operations of variable interest entities ("VIEs") for which the Company is the primary beneficiary. The other equity holders’ interests are reflected in "Net income (loss) attributable to noncontrolling interests" in the consolidated statements of income and "Redeemable Noncontrolling Interest" and "Non-redeemable noncontrolling interests" in the consolidated balance sheets. The following table | |||||||||
summarizes the carrying amounts of these entities’ assets and liabilities included in the Company’s consolidated balance sheets at December 31, 2014 and 2013: | |||||||||
Assets and Liabilities of Consolidated VIEs at December 31 | 2014 | 2013 | |||||||
In millions | |||||||||
Cash and cash equivalents (1) | $ | 190 | $ | 147 | |||||
Other current assets | 175 | 143 | |||||||
Property | 2,726 | 2,646 | |||||||
Other noncurrent assets | 85 | 105 | |||||||
Total assets (2) | $ | 3,176 | $ | 3,041 | |||||
Current liabilities (nonrecourse 2014: $391; 2013: $318) | $ | 394 | $ | 664 | |||||
Long-term debt (nonrecourse 2014: $1,229; 2013: $1,360) | 1,260 | 1,392 | |||||||
Other noncurrent liabilities (nonrecourse 2014: $62; 2013: $69) | 62 | 69 | |||||||
Total liabilities | $ | 1,716 | $ | 2,125 | |||||
-1 | Included $20 million at December 31, 2014 ($1 million at December 31, 2013) specifically restricted for the construction, debt servicing and operational expenses of a manufacturing facility. | ||||||||
-2 | All assets were restricted at December 31, 2014 and December 31, 2013. | ||||||||
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 $99 million (zero restricted) at December 31, 2014 ($105 million, zero restricted, at December 31, 2013) and current liabilities were less than $1 million (zero nonrecourse) at December 31, 2014 (zero, zero nonrecourse, at December 31, 2013). | |||||||||
Amounts presented in the consolidated balance sheets and the table above as restricted assets or nonrecourse obligations relating to consolidated VIEs at December 31, 2014 and 2013 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 committed to the other joint venture partner; therefore, the entity is accounted for under the equity method of accounting. At December 31, 2014, the Company’s investment in the joint venture was $162 million ($159 million at December 31, 2013), classified as “Investment in nonconsolidated affiliates” in the consolidated balance sheets, representing the Company’s maximum exposure to loss. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | STOCK-BASED COMPENSATION | ||||||||||||
The Company provides stock-based compensation in the form of the Employee Stock Purchase Plan (“ESPP”), which grants eligible employees the right to purchase shares of the Company's common stock at a discounted price. The Company also grants stock-based compensation to employees and non-employee directors in the form of stock incentive plans, which include stock options, deferred stock, performance deferred stock and restricted stock. Information regarding these plans is provided below. | |||||||||||||
Accounting for Stock-Based Compensation | |||||||||||||
The Company grants stock-based compensation awards that vest over a specified period or upon employees meeting certain performance and/or retirement eligibility criteria. The fair value of equity instruments issued to employees is measured on the grant date. The fair value of liability instruments issued to employees (specifically, performance deferred stock awards, which are granted to executive employees subject to stock ownership requirements, that provide the recipient the option to elect to receive a cash payment equal to the value of the stock award on the date of delivery) is measured at the end of each quarter. The fair value of equity and liability instruments is expensed over the vesting period or, in the case of retirement, from the grant date to the date on which retirement eligibility provisions have been met and additional service is no longer required. | |||||||||||||
The Company uses a lattice-based option valuation model to estimate the fair value of stock options, the Black-Scholes option valuation model for subscriptions to purchase shares under the ESPP and Monte Carlo simulation for the market portion of performance deferred stock awards. The weighted-average assumptions used to calculate total stock-based compensation are included in the following table: | |||||||||||||
Weighted-Average Assumptions | 2014 | 2013 | 2012 | ||||||||||
Dividend yield | 3.08 | % | 3.89 | % | 3.34 | % | |||||||
Expected volatility | 28.11 | % | 29.93 | % | 38.39 | % | |||||||
Risk-free interest rate | 1.11 | % | 1.08 | % | 0.95 | % | |||||||
Expected life of stock options granted during period (years) | 7.7 | 7.8 | 7.6 | ||||||||||
Life of Employee Stock Purchase Plan (months) | 6 | 5 | 6 | ||||||||||
The dividend yield assumption for 2014 was equal to the dividend yield on the grant date, which for stock options was the most recent quarterly dividend declared at the grant date of $0.37 per share and for the ESPP was the first quarter dividend payment of $0.32 per share. The dividend yield assumption for 2013 was equal to the dividend yield on the grant date, which reflected the most recent quarterly dividend payment of $0.32 per share. The dividend yield assumption for 2012 was based on a 10 percent/90 percent blend of the Company’s current declared dividend as a percentage of the stock price on the grant date and a 10-year dividend yield average. The expected volatility assumption was based on an equal weighting of the historical daily volatility and current implied volatility from exchange-traded options for the contractual term of the options. The risk-free interest rate was based on the weighted-average of U.S. Treasury strip rates over the contractual term of the options. The expected life of stock options granted was based on an analysis of historical exercise patterns. | |||||||||||||
Employee Stock Purchase Plan | |||||||||||||
On February 9, 2012, the Board of Directors authorized The Dow Chemical Company 2012 Employee Stock Purchase Plan which was approved by stockholders at the Company’s annual meeting on May 10, 2012. Under the 2014 annual offering, 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 at an amount equal to: the lower of at least 85 percent of the fair market value (closing price) of the common stock on a date, or the average fair market value (closing price) of the common stock over a period, in each case, specified by the plan administrator. | |||||||||||||
Employee Stock Purchase Plan | 2014 | ||||||||||||
Shares in thousands | Shares | Exercise | |||||||||||
Price | |||||||||||||
Outstanding at January 1, 2014 | — | — | |||||||||||
Granted | 3,634 | $ | 38.13 | ||||||||||
Exercised | (3,615 | ) | $ | 38.13 | |||||||||
Forfeited/Expired | (3 | ) | $ | 38.13 | |||||||||
Outstanding and exercisable at December 31, 2014 | 16 | $ | 38.13 | ||||||||||
Additional Information about Employee Stock Purchase Plan | 2014 | 2013 | 2012 | ||||||||||
In millions, except per share amounts | |||||||||||||
Weighted-average fair value per share of purchase rights granted | $ | 5.45 | $ | 7.2 | $ | 8.32 | |||||||
Total compensation expense for ESPP | $ | 20 | $ | 60 | $ | 79 | |||||||
Related tax benefit | $ | 7 | $ | 22 | $ | 29 | |||||||
Total amount of cash received from the exercise of purchase rights | $ | 138 | $ | 198 | $ | 166 | |||||||
Total intrinsic value of purchase rights exercised (1) | $ | 42 | $ | 68 | $ | 41 | |||||||
Related tax benefit | $ | 15 | $ | 25 | $ | 15 | |||||||
-1 | Difference between the market price at exercise and the price paid by the employee to exercise the purchase rights. | ||||||||||||
Stock Incentive Plan | |||||||||||||
The Company has historically granted equity awards under various plans (the "Prior Plans"). On February 9, 2012, the Board of Directors authorized The Dow Chemical Company 2012 Stock Incentive Plan (the "2012 Plan"), which was approved by stockholders at the Company's annual meeting on May 10, 2012 ("Original Effective Date") and became effective on that date. On February 13, 2014, the Board of Directors adopted The Dow Chemical Company Amended and Restated 2012 Stock Incentive Plan (the "2012 Restated Plan"). The 2012 Restated Plan was approved by stockholders at the Company's annual meeting on May 15, 2014 and became effective on that date. The Prior Plans were superseded by the 2012 Plan and the 2012 Restated Plan (collectively, the "2012 Plan"). Under the 2012 Plan, the Company may grant options, deferred stock, performance deferred stock, restricted stock, stock appreciation rights and stock units to employees and non-employee directors until the tenth anniversary of the Original Effective Date, subject to an aggregate limit and annual individual limits. The terms of the grants are fixed at the grant date. At December 31, 2014, there were 62,725,432 shares available for grant under the 2012 Plan. | |||||||||||||
Stock Options | |||||||||||||
The Company grants stock options to certain employees, subject to certain annual and individual limits, with terms of the grants fixed at the grant date. The exercise price of each stock option equals the market price of the Company’s stock on the grant date. Options vest from one to three years, and have a maximum term of 10 years. The following table summarizes stock option activity for 2014: | |||||||||||||
Stock Options | 2014 | ||||||||||||
Shares in thousands | Shares | Exercise | |||||||||||
Price (1) | |||||||||||||
Outstanding at January 1, 2014 | 76,298 | $ | 35.93 | ||||||||||
Granted | 3,152 | $ | 46.71 | ||||||||||
Exercised | (23,951 | ) | $ | 36.6 | |||||||||
Forfeited/Expired | (1,852 | ) | $ | 41.96 | |||||||||
Outstanding at December 31, 2014 | 53,647 | $ | 36.05 | ||||||||||
Remaining contractual life in years | 5.51 | ||||||||||||
Aggregate intrinsic value in millions | $ | 544 | |||||||||||
Exercisable at December 31, 2014 | 35,330 | $ | 36.57 | ||||||||||
Remaining contractual life in years | 4.28 | ||||||||||||
Aggregate intrinsic value in millions | $ | 348 | |||||||||||
-1 | Weighted-average per share. | ||||||||||||
Additional Information about Stock Options | 2014 | 2013 | 2012 | ||||||||||
In millions, except per share amounts | |||||||||||||
Weighted-average fair value per share of options granted | $ | 11.49 | $ | 6.99 | $ | 9.38 | |||||||
Total compensation expense for stock option plans | $ | 65 | $ | 101 | $ | 106 | |||||||
Related tax benefit | $ | 24 | $ | 37 | $ | 39 | |||||||
Total amount of cash received from the exercise of options | $ | 810 | $ | 188 | $ | 137 | |||||||
Total intrinsic value of options exercised (1) | $ | 300 | $ | 102 | $ | 64 | |||||||
Related tax benefit | $ | 111 | $ | 38 | $ | 24 | |||||||
-1 | Difference between the market price at exercise and the price paid by the employee to exercise the options. | ||||||||||||
Total unrecognized compensation cost related to unvested stock option awards of $40 million at December 31, 2014 is expected to be recognized over a weighted-average period of 0.68 years. | |||||||||||||
Deferred Stock | |||||||||||||
The Company grants deferred stock to certain employees. The grants vest after a designated period of time, generally one to three years. The following table shows changes in nonvested deferred stock: | |||||||||||||
Deferred Stock | 2014 | ||||||||||||
Shares in thousands | Shares | Grant Date | |||||||||||
Fair Value (1) | |||||||||||||
Nonvested at January 1, 2014 | 10,588 | $ | 34.38 | ||||||||||
Granted | 2,344 | $ | 46.88 | ||||||||||
Vested | (3,311 | ) | $ | 37.32 | |||||||||
Canceled | (269 | ) | $ | 35.34 | |||||||||
Nonvested at December 31, 2014 | 9,352 | $ | 36.45 | ||||||||||
-1 | Weighted-average per share. | ||||||||||||
Additional Information about Deferred Stock | 2014 | 2013 | 2012 | ||||||||||
In millions, except per share amounts | |||||||||||||
Weighted-average fair value per share of deferred stock granted | $ | 46.88 | $ | 32.13 | $ | 33.81 | |||||||
Total fair value of deferred stock vested and delivered (1) | $ | 156 | $ | 137 | $ | 252 | |||||||
Related tax benefit | $ | 58 | $ | 51 | $ | 93 | |||||||
Total compensation expense for deferred stock awards | $ | 99 | $ | 104 | $ | 129 | |||||||
Related tax benefit | $ | 37 | $ | 39 | $ | 48 | |||||||
-1 | Includes the fair value of shares vested in prior years and delivered in the reporting year. | ||||||||||||
Total unrecognized compensation cost related to deferred stock awards of $87 million at December 31, 2014 is expected to be recognized over a weighted-average period of 0.86 years. At December 31, 2014, approximately 44,941 deferred shares with a grant date weighted-average fair value per share of $36.52 had previously vested, but were not issued. These shares are scheduled to be issued to employees within one to three years or upon retirement. | |||||||||||||
Performance Deferred Stock | |||||||||||||
The Company grants performance deferred stock to certain employees. The grants vest when the Company attains specified performance targets, such as return on capital and relative total shareholder return, over a predetermined period, generally one to three years. Compensation expense related to performance deferred stock awards is recognized over the lesser of the service or performance period. Changes in the fair value of liability instruments are recognized as compensation expense each quarter. The following table shows the performance deferred stock awards granted: | |||||||||||||
Performance Deferred Stock Awards | Target | Grant Date | |||||||||||
Shares in thousands | Shares | Fair Value (2) | |||||||||||
Year | Performance Period | Granted (1) | |||||||||||
2014 | January 1, 2014 – December 31, 2016 | 2,425 | $ | 46.72 | |||||||||
2013 | January 1, 2013 – December 31, 2015 | 1,321 | $ | 32.16 | |||||||||
2012 | January 1, 2012 – December 31, 2014 | 1,205 | $ | 34 | |||||||||
-1 | At the end of the performance period, the actual number of shares issued can range from zero to 250 percent of the target shares granted in the 2012 and 2013 grant years, and zero to 200 percent of target shares granted in the 2014 grant year. | ||||||||||||
-2 | Weighted-average per share. | ||||||||||||
The following table shows changes in nonvested performance deferred stock: | |||||||||||||
Performance Deferred Stock | 2014 | ||||||||||||
Shares in thousands | Target | Grant Date | |||||||||||
Shares | Fair Value (2) | ||||||||||||
Granted (1) | |||||||||||||
Nonvested at January 1, 2014 | 2,504 | $ | 33.03 | ||||||||||
Granted | 2,425 | $ | 46.72 | ||||||||||
Vested (3) | (1,185 | ) | $ | 34 | |||||||||
Canceled | (24 | ) | $ | 38.6 | |||||||||
Nonvested at December 31, 2014 | 3,720 | $ | 41.61 | ||||||||||
-1 | At the end of the performance period, the actual number of shares issued can range from zero to 250 percent of the target shares granted in the 2012 and 2013 grant years, and zero to 200 percent of target shares granted in the 2014 grant year. | ||||||||||||
-2 | Weighted-average per share. | ||||||||||||
-3 | Vested shares for the 2012 - 2014 performance period that were earned (i.e., performance conditions were satisfied and the target shares granted for the performance period vested) during the applicable fiscal year. Shares earned will be delivered in February 2015 at the applicable pay-out percentage. Certain executive employees may opt to receive a cash payment equal to the value of the stock award on the date of delivery. | ||||||||||||
Additional Information about Performance Deferred Stock | |||||||||||||
In millions | 2014 | 2013 | 2012 | ||||||||||
Total fair value of performance deferred stock vested and delivered (1) | $ | 12 | $ | 14 | $ | 68 | |||||||
Related tax benefit | $ | 5 | $ | 5 | $ | 25 | |||||||
Total compensation expense for performance deferred stock awards | $ | 67 | $ | 62 | $ | 21 | |||||||
Related tax benefit | $ | 25 | $ | 23 | $ | 8 | |||||||
Shares of performance deferred stock settled in cash (2) | 0.1 | 0.2 | 1 | ||||||||||
Total cash paid to settle performance deferred stock awards (3) | $ | 6 | $ | 6 | $ | 34 | |||||||
-1 | Includes the fair value of shares vested in prior years and delivered in the reporting year. | ||||||||||||
-2 | Performance deferred stock awards vested in prior years and delivered in the reporting year. | ||||||||||||
-3 | Cash paid to certain employees for performance deferred stock awards vested in prior periods and delivered in the reporting year, equal to the value of the stock award on the date of delivery. | ||||||||||||
Total unrecognized compensation cost related to performance deferred stock awards of $63 million at December 31, 2014 is expected to be recognized over a weighted-average period of 0.90 years. At December 31, 2014, approximately 0.8 million performance deferred shares with a grant date weighted-average fair value of $34.00 per share were vested, but not issued. These shares are scheduled to be issued in February 2015. | |||||||||||||
Restricted Stock | |||||||||||||
Under the 2012 Plan, the Company may grant shares (including options, stock appreciation rights, stock units and restricted stock) to non-employee directors over the 10-year duration of the program, subject to the plan's aggregate limit as well as annual individual limits. In 2014, 24,840 shares of restricted stock with a weighted-average fair value of $48.98 per share were issued under this plan. The restricted stock issued under this plan cannot be sold, assigned, pledged or otherwise transferred by the non-employee director, until the director is no longer a member of the Board. |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | STOCKHOLDERS’ EQUITY |
Cumulative Convertible Perpetual Preferred Stock, Series A | |
Equity securities in the form of Cumulative Convertible Perpetual Preferred Stock, Series A (“preferred series A”) were issued on April 1, 2009 to Berkshire Hathaway Inc. in the amount of $3 billion (3 million shares) and the Kuwait Investment Authority in the amount of $1 billion (1 million shares). The Company will pay cumulative dividends on preferred series A at a rate of 8.5 percent per annum in either cash, shares of common stock, or any combination thereof, at the option of the Company. Dividends may be deferred indefinitely, at the Company’s option. If deferred, common stock dividends must also be deferred. Any past due and unpaid dividends will accrue additional dividends at a rate of 10 percent per annum, compounded quarterly. If dividends are deferred for any six quarters, the preferred series A shareholders may elect two directors to the Company’s Board of Directors until all past due dividends are paid. Ongoing dividends related to preferred series A are $85 million per quarter; no dividends had been deferred at December 31, 2014. | |
Shareholders of preferred series A may convert all or any portion of their shares, at their option, at any time, into shares of the Company’s common stock at an initial conversion rate of 24.2010 shares of common stock for each share of preferred series A. Under certain circumstances, the Company will be required to adjust the conversion rate. On or after the fifth anniversary of the issuance date, if the common stock price exceeds $53.72 per share for any 20 trading days in a consecutive 30-day window, the Company may, at its option, at any time, in whole or in part, convert preferred series A into common stock at the then applicable conversion rate. Upon conversion, accrued and unpaid dividends will be payable, at the option of the Company, in either cash, shares of common stock, or any combination thereof. | |
Common Stock | |
The Company may issue common stock shares out of treasury stock or as new common stock shares for purchases under the Employee Stock Purchase Plan, for options exercised and for the release of deferred, performance deferred and restricted stock. The number of new common stock shares issued to employees and non-employee directors under the Company's stock-based compensation programs was 21.2 million in 2014, 18.3 million in 2013 and 18.7 million in 2012. | |
Retained Earnings | |
There are no significant restrictions limiting the Company’s ability to pay dividends. | |
Undistributed earnings of nonconsolidated affiliates included in retained earnings were $2,703 million at December 31, 2014 and $2,563 million at December 31, 2013. | |
Employee Stock Ownership Plan | |
The Company has the Dow Employee Stock Ownership Plan (the “ESOP”), which is an integral part of The Dow Chemical Company Employees’ Savings Plan (the “Plan”). A significant majority of full-time employees in the United States are eligible to participate in the Plan. The Company uses the ESOP to provide the Company’s matching contribution in the form of the Company’s stock to Plan participants. | |
In connection with the acquisition of Rohm and Haas on April 1, 2009, the Rohm and Haas Employee Stock Ownership Plan (the "Rohm and Haas ESOP") was merged into the Plan, and the Company assumed the $78 million balance of debt at 9.8 percent interest with final maturity in 2020 that was used to finance share purchases by the Rohm and Haas ESOP in 1990. The outstanding balance of the debt was $37 million at December 31, 2014 and $44 million at December 31, 2013. | |
Dividends on unallocated shares held by the ESOP are used by the ESOP to make debt service payments and to purchase additional shares if dividends exceed the debt service payments. Dividends on allocated shares are used by the ESOP to make debt service payments to the extent needed; otherwise, they are paid to the Plan participants. Shares are released for allocation to participants based on the ratio of the current year’s debt service to the sum of the principal and interest payments over the life of the loan. The shares are allocated to Plan participants in accordance with the terms of the Plan. | |
Compensation expense for allocated shares is recorded at the fair value of the shares on the date of allocation. ESOP shares that have not been released or committed to be released are not considered outstanding for purposes of computing basic and diluted earnings per share. | |
Compensation expense for ESOP shares was $163 million in 2014, $132 million in 2013 and $107 million in 2012. At December 31, 2014, 15.0 million shares out of a total 35.0 million shares held by the ESOP had been allocated to participants’ accounts; 1.8 million shares were released but unallocated; and 18.2 million shares, at a fair value of $831 million, were considered unearned. | |
Treasury Stock | |
On February 13, 2013, the Board of Directors approved a share buy-back program, authorizing up to $1.5 billion to be spent on the repurchase of the Company's common stock over a period of time. On January 29, 2014, the Board of Directors announced an expansion of the Company's share buy-back authorization, authorizing an additional amount not to exceed $3 billion to be spent on the repurchase of the Company's common stock over a period of time. On November 12, 2014, the Board of Directors announced a new $5 billion tranche to its share buy-back program, with the repurchase of the Company's common stock timed to proceeds received from portfolio management actions and increases in operating cash flows. As a result of these actions, the total authorized amount of the share repurchase program is $9.5 billion. At December 31, 2014, $5 billion of the share buy-back authorization remained for repurchases. The total number of treasury shares purchased by the Company was 84.1 million in 2014, 8.2 million in 2013 and zero in 2012. | |
The Company may issue shares for purchases under the Employee Stock Purchase Plan, for options exercised as well as for the release of deferred, performance deferred and restricted stock out of treasury stock or as new common stock shares. The number of treasury shares issued to employees under the Company’s stock-based compensation programs was 7.1 million in 2014, zero in 2013 and zero in 2012. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Text Block] | INCOME TAXES | ||||||||||||||||||||||||||||||||||||
Domestic and Foreign Components of Income Before Income Taxes | |||||||||||||||||||||||||||||||||||||
In millions | 2014 | 2013 (1) | 2012 (2) | ||||||||||||||||||||||||||||||||||
Domestic | $ | 1,652 | $ | 3,979 | $ | (401 | ) | ||||||||||||||||||||||||||||||
Foreign | 3,613 | 2,825 | 2,066 | ||||||||||||||||||||||||||||||||||
Total | $ | 5,265 | $ | 6,804 | $ | 1,665 | |||||||||||||||||||||||||||||||
-1 | In 2013, the domestic component of "Income Before Income Taxes" included a gain of $2.195 billion related to the K-Dow arbitration and a $451 million gain related to the sale of Dow's Polypropylene Licensing and Catalysts business. | ||||||||||||||||||||||||||||||||||||
-2 | In 2012, the domestic component of "Income Before Income Taxes" was significantly impacted by the Company's 1Q12 and 4Q12 restructuring charges. | ||||||||||||||||||||||||||||||||||||
Provision for Income Taxes | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
In millions | Current | Deferred | Total | Current | Deferred | Total | Current | Deferred | Total | ||||||||||||||||||||||||||||
Federal (1) | $ | (161 | ) | $ | 442 | $ | 281 | $ | 805 | $ | 278 | $ | 1,083 | $ | 241 | $ | (312 | ) | $ | (71 | ) | ||||||||||||||||
State and local | (4 | ) | 43 | 39 | 42 | (73 | ) | (31 | ) | 9 | (10 | ) | (1 | ) | |||||||||||||||||||||||
Foreign | 1,125 | (19 | ) | 1,106 | 1,028 | (92 | ) | 936 | 780 | (143 | ) | 637 | |||||||||||||||||||||||||
Total | $ | 960 | $ | 466 | $ | 1,426 | $ | 1,875 | $ | 113 | $ | 1,988 | $ | 1,030 | $ | (465 | ) | $ | 565 | ||||||||||||||||||
-1 | Reflects the 2014 impact of accelerated deductions. | ||||||||||||||||||||||||||||||||||||
Reconciliation to U.S. Statutory Rate | |||||||||||||||||||||||||||||||||||||
In millions | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Taxes at U.S. statutory rate | $ | 1,843 | $ | 2,381 | $ | 583 | |||||||||||||||||||||||||||||||
Equity earnings effect | (307 | ) | (276 | ) | (115 | ) | |||||||||||||||||||||||||||||||
Foreign income taxed at rates other than 35% (1) | (195 | ) | (76 | ) | (76 | ) | |||||||||||||||||||||||||||||||
U.S. tax effect of foreign earnings and dividends | 54 | 102 | 13 | ||||||||||||||||||||||||||||||||||
Goodwill impairment losses | — | — | 77 | ||||||||||||||||||||||||||||||||||
Discrete equity earnings (2) | 26 | — | 48 | ||||||||||||||||||||||||||||||||||
Change in permanent reinvestment assertions | — | — | (236 | ) | |||||||||||||||||||||||||||||||||
Change in valuation allowances | 33 | (197 | ) | 135 | |||||||||||||||||||||||||||||||||
Unrecognized tax benefits | (30 | ) | 243 | 122 | |||||||||||||||||||||||||||||||||
Federal tax accrual adjustments | (3 | ) | 29 | 4 | |||||||||||||||||||||||||||||||||
Gain from K-Dow arbitration (3) | — | (212 | ) | — | |||||||||||||||||||||||||||||||||
Other – net | 5 | (6 | ) | 10 | |||||||||||||||||||||||||||||||||
Total tax provision | $ | 1,426 | $ | 1,988 | $ | 565 | |||||||||||||||||||||||||||||||
Effective tax rate | 27.1 | % | 29.2 | % | 33.9 | % | |||||||||||||||||||||||||||||||
-1 | Includes the tax provision for statutory taxable income in foreign jurisdictions for which there is no corresponding amount in “Income Before Income Taxes.” | ||||||||||||||||||||||||||||||||||||
-2 | Includes nonrecurring charges related to equity in earnings of nonconsolidated affiliates. | ||||||||||||||||||||||||||||||||||||
-3 | In 2013, the K-Dow arbitration award generated a tax rate benefit of $212 million due to the tax treatment of certain components of the award. See Note 14 for further information. | ||||||||||||||||||||||||||||||||||||
The tax rate for 2014 was favorably impacted by the geographic mix of earnings, with the most notable components being improved profitability in Europe and Asia Pacific as well as equity earnings providing additional favorable impact on the tax rate. The tax rate was also favorably impacted by a reduction in the tax on remittances by foreign subsidiaries to the United States. The tax rate was unfavorably impacted by a continued increase in statutory income in Latin America due to local currency devaluations, and increases in valuation allowances, primarily in Asia Pacific. These factors resulted in an effective tax rate of 27.1 percent for 2014. | |||||||||||||||||||||||||||||||||||||
The tax rate for 2013 was favorably impacted by increased equity earnings; the K-Dow arbitration award, due to favorable tax treatment of certain components of the award; and changes in valuation allowances in the United States on state income tax attributes and capital loss carryforwards. The tax rate was unfavorably impacted by adjustments to uncertain tax positions related to court rulings on two separate tax matters as well as the establishment of valuation allowances outside the United States. Additionally, the tax rate was unfavorably impacted by an increase in statutory taxable income in Latin America, primarily due to local currency devaluation. These factors resulted in an effective tax rate of 29.2 percent for 2013. | |||||||||||||||||||||||||||||||||||||
The tax rate for 2012 was negatively impacted by a change in the geographic mix of earnings, notably a decrease in earnings in Europe and an increase in earnings in the United States, as well as reductions in equity earnings. Equity earnings were further impacted by asset impairment and restructuring charges at Dow Corning. Additionally, the Company's impairment of Dow Formulated Systems goodwill and the impairment of the long-lived assets of Dow Kokam LLC received minimal tax relief. The tax rate was favorably impacted by a change in the permanent reinvestment assertions of certain affiliates in Europe and Asia Pacific; however, this was primarily offset by unfavorable adjustments to uncertain tax positions and valuation allowances. These factors resulted in an effective tax rate of 33.9 percent for 2012. | |||||||||||||||||||||||||||||||||||||
Deferred Tax Balances at December 31 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||
In millions | Deferred Tax | Deferred Tax | Deferred Tax | Deferred Tax | |||||||||||||||||||||||||||||||||
Assets (1) | Liabilities | Assets (1) | Liabilities | ||||||||||||||||||||||||||||||||||
Property | $ | 63 | $ | 2,005 | $ | 62 | $ | 2,165 | |||||||||||||||||||||||||||||
Tax loss and credit carryforwards | 1,843 | — | 2,012 | — | |||||||||||||||||||||||||||||||||
Postretirement benefit obligations | 4,526 | 1,220 | 3,619 | 1,150 | |||||||||||||||||||||||||||||||||
Other accruals and reserves (2) | 1,213 | 411 | 1,901 | 392 | |||||||||||||||||||||||||||||||||
Intangibles | 217 | 691 | 113 | 827 | |||||||||||||||||||||||||||||||||
Inventory | 412 | 177 | 217 | 197 | |||||||||||||||||||||||||||||||||
Long-term debt | — | 673 | — | 600 | |||||||||||||||||||||||||||||||||
Investments | 103 | 102 | 137 | 111 | |||||||||||||||||||||||||||||||||
Other – net | 999 | 771 | 1,143 | 794 | |||||||||||||||||||||||||||||||||
Subtotal | $ | 9,376 | $ | 6,050 | $ | 9,204 | $ | 6,236 | |||||||||||||||||||||||||||||
Valuation allowances | (1,106 | ) | — | (1,112 | ) | — | |||||||||||||||||||||||||||||||
Total | $ | 8,270 | $ | 6,050 | $ | 8,092 | $ | 6,236 | |||||||||||||||||||||||||||||
-1 | Included in current deferred tax assets are prepaid tax assets totaling $358 million in 2014 and $205 million in 2013. | ||||||||||||||||||||||||||||||||||||
-2 | The reduction in deferred tax assets in 2014 reflects the impact of accelerated deductions. | ||||||||||||||||||||||||||||||||||||
Gross operating loss carryforwards amounted to $11,080 million at December 31, 2014 and $11,435 million at December 31, 2013. At December 31, 2014, $1,520 million of the operating loss carryforwards were subject to expiration in 2015 through 2019. The remaining operating loss carryforwards expire in years beyond 2019 or have an indefinite carryforward period. Tax credit carryforwards at December 31, 2014 amounted to $130 million ($124 million at December 31, 2013), net of uncertain tax positions, of which $22 million is subject to expiration in 2015 through 2019. The remaining tax credit carryforwards expire in years beyond 2019 or have an indefinite carryforward period. | |||||||||||||||||||||||||||||||||||||
The Company had valuation allowances that primarily related to the realization of recorded tax benefits on tax loss carryforwards from operations in the United States, Brazil and Asia Pacific of $1,106 million at December 31, 2014 and $1,112 million at December 31, 2013. | |||||||||||||||||||||||||||||||||||||
Undistributed earnings of foreign subsidiaries and related companies that are deemed to be permanently invested amounted to $18,037 million at December 31, 2014, $16,139 million at December 31, 2013 and $14,504 million at December 31, 2012. It is not practicable to calculate the unrecognized deferred tax liability on undistributed earnings. | |||||||||||||||||||||||||||||||||||||
Total Gross Unrecognized Tax Benefits | |||||||||||||||||||||||||||||||||||||
In millions | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Balance at January 1 | $ | 266 | $ | 409 | $ | 339 | |||||||||||||||||||||||||||||||
Increases related to positions taken on items from prior years | 42 | 385 | 66 | ||||||||||||||||||||||||||||||||||
Decreases related to positions taken on items from prior years | (57 | ) | (137 | ) | (32 | ) | |||||||||||||||||||||||||||||||
Increases related to positions taken in the current year | 10 | 10 | 53 | ||||||||||||||||||||||||||||||||||
Settlement of uncertain tax positions with tax authorities | (13 | ) | (393 | ) | (9 | ) | |||||||||||||||||||||||||||||||
Decreases due to expiration of statutes of limitations | (8 | ) | (8 | ) | (8 | ) | |||||||||||||||||||||||||||||||
Balance at December 31 | $ | 240 | $ | 266 | $ | 409 | |||||||||||||||||||||||||||||||
At December 31, 2014, the total amount of unrecognized tax benefits was $240 million ($266 million at December 31, 2013), of which $233 million would impact the effective tax rate, if recognized ($257 million at December 31, 2013). | |||||||||||||||||||||||||||||||||||||
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 the “Provision for income taxes,” and totaled a charge of $15 million in 2014, a benefit of $71 million in 2013 and a charge of $92 million in 2012. The Company’s accrual for interest and penalties was $109 million at December 31, 2014 and $81 million at December 31, 2013. | |||||||||||||||||||||||||||||||||||||
During 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 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 $276 million in 2013. | |||||||||||||||||||||||||||||||||||||
Tax years that remain subject to examination for the Company’s major tax jurisdictions are shown below: | |||||||||||||||||||||||||||||||||||||
Tax Years Subject to Examination by Major Tax | |||||||||||||||||||||||||||||||||||||
Jurisdiction at December 31 | |||||||||||||||||||||||||||||||||||||
Earliest Open Year | |||||||||||||||||||||||||||||||||||||
Jurisdiction | 2014 | 2013 | |||||||||||||||||||||||||||||||||||
Argentina | 2007 | 2007 | |||||||||||||||||||||||||||||||||||
Brazil (1) | 2008 | 2009 | |||||||||||||||||||||||||||||||||||
Canada | 2010 | 2009 | |||||||||||||||||||||||||||||||||||
France | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
Germany | 2006 | 2006 | |||||||||||||||||||||||||||||||||||
Italy | 2009 | 2008 | |||||||||||||||||||||||||||||||||||
The Netherlands | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Spain | 2009 | 2008 | |||||||||||||||||||||||||||||||||||
Switzerland | 2011 | 2009 | |||||||||||||||||||||||||||||||||||
United Kingdom | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
United States: | |||||||||||||||||||||||||||||||||||||
Federal income tax | 2004 | 2004 | |||||||||||||||||||||||||||||||||||
State and local income tax | 2004 | 2004 | |||||||||||||||||||||||||||||||||||
-1 | Amended returns filed in 2014 for years 2008 and 2009. | ||||||||||||||||||||||||||||||||||||
The Company is currently under examination in a number of tax jurisdictions. It is reasonably possible that some of these examinations may be resolved within twelve months. As a result, it is reasonably possible that the total gross unrecognized tax benefits of the Company at December 31, 2014 may range from an increase of $60 million to a decrease of $135 million in the next twelve months as a result of these resolved examinations. The impact on the Company’s results of operations is not expected to be material. | |||||||||||||||||||||||||||||||||||||
The reserve for non-income tax contingencies related to issues in the United States and foreign locations was $93 million at December 31, 2014 and $105 million at December 31, 2013. This is management’s best estimate of the potential liability for non-income tax contingencies. Inherent uncertainties exist in estimates of tax contingencies due to changes in tax law, both legislated and concluded through the various jurisdictions’ tax court systems. It is the opinion of the Company’s management that the possibility is remote that costs in excess of those accrued will have a material impact on the Company’s consolidated financial statements. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||
Accumulated Other Comprehensive Loss Note [Text Block] | ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||||||
The following table provides an analysis of the changes in accumulated other comprehensive loss for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||
In millions | 2014 | 2013 | 2012 | |||||||||
Unrealized Gains on Investments at beginning of year | $ | 160 | $ | 147 | $ | 78 | ||||||
Net change in unrealized gains (net of tax of $22, $25, $29) | 41 | 55 | 84 | |||||||||
Reclassification to earnings - Net sales (net of tax of $(32), $(20), $(8)) (1) | (59 | ) | (42 | ) | (13 | ) | ||||||
Reclassification to earnings - Sundry income (expense) - net (net of tax of $(1), $-, $(1)) (1) | (1 | ) | — | (2 | ) | |||||||
Balance at end of period | $ | 141 | $ | 160 | $ | 147 | ||||||
Cumulative Translation Adjustments at beginning of year | 476 | 328 | 72 | |||||||||
Translation adjustments (net of tax of $28, $(6), $97) | (1,239 | ) | 169 | 256 | ||||||||
Reclassification to earnings - Sundry income (expense) - net (2) | 12 | (21 | ) | — | ||||||||
Balance at end of period | $ | (751 | ) | $ | 476 | $ | 328 | |||||
Pension and Other Postretirement Benefit Plans at beginning of year | (5,460 | ) | (7,995 | ) | (6,134 | ) | ||||||
Net gain (loss) arising during period (net of tax of $(1,228), $876, $(1,037)) (3) | (2,516 | ) | 1,984 | (2,222 | ) | |||||||
Prior service credit arising during period (net of tax of $185, $1, $-) (3) | 315 | 5 | — | |||||||||
Amortization of prior service cost included in net periodic pension costs (net of tax of $6, $6, $7) (3) | 14 | 15 | 15 | |||||||||
Amortization of net loss included in net periodic pension costs (net of tax of $158, $266, $174) (3) | 326 | 531 | 346 | |||||||||
Balance at end of period | $ | (7,321 | ) | $ | (5,460 | ) | $ | (7,995 | ) | |||
Accumulated Derivative Gain (Loss) at beginning of year | (3 | ) | 4 | (12 | ) | |||||||
Net hedging results (net of tax of $(25), $5, $(9)) | (91 | ) | 10 | (7 | ) | |||||||
Reclassification to earnings - Cost of sales (net of tax of $2, $(8), $13) (1) (4) | 8 | (17 | ) | 23 | ||||||||
Balance at end of period | $ | (86 | ) | $ | (3 | ) | $ | 4 | ||||
Total accumulated other comprehensive loss | $ | (8,017 | ) | $ | (4,827 | ) | $ | (7,516 | ) | |||
(1) Tax amounts are included in "Provision for income taxes" in the consolidated statements of income. | ||||||||||||
-2 | In 2014, reclassification resulted from the liquidation and divestiture of subsidiaries. In 2013, reclassification resulted from the divestiture of a nonconsolidated affiliate. | |||||||||||
(3) See Note 17 for additional information. | ||||||||||||
-4 | Accumulated Derivative Gain (Loss) for 2012 was presented in accordance with ASU 2013-02. |
NONCONTROLLING_INTERESTS_Nonco
NONCONTROLLING INTERESTS Noncontrolling Interests | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Noncontrolling Interest [Abstract] | ||||||||||||
Noncontrolling Interest Disclosure [Text Block] | NONCONTROLLING INTERESTS | |||||||||||
Ownership interests in the Company's subsidiaries held by parties other than the Company are presented separately from the Company's equity in the consolidated balance sheets as "Redeemable Noncontrolling Interest" and "Non-redeemable noncontrolling interests." The amount of consolidated net income attributable to the Company and the noncontrolling interests are both presented on the face of the consolidated statements of income. See Note 19 for additional information related to the redeemable noncontrolling interest. | ||||||||||||
The following table summarizes the activity for equity attributable to non-redeemable noncontrolling interests for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
Non-redeemable Noncontrolling Interests | 2014 | 2013 | 2012 | |||||||||
In millions | ||||||||||||
Balance at January 1 | $ | 1,026 | $ | 990 | $ | 1,010 | ||||||
Net income (loss) attributable to noncontrolling interests | 67 | 29 | (82 | ) | ||||||||
Distributions to noncontrolling interests (1) | (64 | ) | (55 | ) | (73 | ) | ||||||
Capital contributions (noncash - 2014: $-; 2013: $-; 2012: $97) | 36 | 58 | 97 | |||||||||
Consolidation of variable interest entities (2) | — | — | 37 | |||||||||
Purchases of noncontrolling interests (2) | (56 | ) | — | — | ||||||||
Transfers of redeemable noncontrolling interest | (46 | ) | (9 | ) | — | |||||||
Cumulative translation adjustments | (29 | ) | (43 | ) | — | |||||||
Deconsolidation of noncontrolling interests | — | 52 | — | |||||||||
Other | (3 | ) | 4 | 1 | ||||||||
Balance at December 31 | $ | 931 | $ | 1,026 | $ | 990 | ||||||
-1 | The 2014 impact is net of $27 million in dividends paid to a joint venture which were reclassified to "Equity in earnings of nonconsolidated affiliates." | |||||||||||
-2 | See Note 19 for additional information on variable interest entities. |
OPERATING_SEGMENTS_AND_GEOGRAP
OPERATING SEGMENTS AND GEOGRAPHIC AREAS | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | OPERATING SEGMENTS AND GEOGRAPHIC AREAS | ||||||||||||||||||||||||||||
Beginning in the fourth quarter of 2014, the Company changed its reportable segments as a result of changes in the Company's organization, including executive leadership appointments. The new operating segments reflect the Company’s strategy to be low-cost and fully integrated in key value chains while adding value through technology and end-market orientation. The new operating segments also reflect either integrated value chain alignment, such as acrylic, chlorine, ethylene and propylene within a segment, or the segment’s innovation-driven market focus. | |||||||||||||||||||||||||||||
Following are the new segments: | |||||||||||||||||||||||||||||
• | Agricultural Sciences | ||||||||||||||||||||||||||||
• | Consumer Solutions | ||||||||||||||||||||||||||||
• | Infrastructure Solutions | ||||||||||||||||||||||||||||
• | Performance Materials & Chemicals | ||||||||||||||||||||||||||||
• | Performance Plastics | ||||||||||||||||||||||||||||
The Company also changed the assignment of certain expenses previously aligned with the Corporate segment to better reflect operating segment results and profitability. All leveraged functional costs (i.e., information systems, finance, human resources, legal, supply chain, etc.) are now fully allocated to the segments. In addition, long-term performance-based compensation expense, including the Employee Stock Purchase Plan, stock options, deferred stock and performance deferred stock, are now allocated to the segments based primarily on employee alignment. | |||||||||||||||||||||||||||||
The reporting changes are retrospectively reflected in segment results for all periods presented. | |||||||||||||||||||||||||||||
Dow is a diversified, worldwide manufacturer and supplier of products used primarily as raw materials in the manufacture of customer products and services. The Company serves the following industries: appliance; automotive; agricultural; building and construction; chemical processing; electronics; furniture; housewares; oil and gas; packaging; paints, coatings and adhesives; personal care; pharmaceutical; processed foods; pulp and paper; textile and carpet; utilities; and water treatment. | |||||||||||||||||||||||||||||
Dow conducts its worldwide operations through global businesses, which are reported in five operating segments. Corporate contains the reconciliation between the totals for the reportable segments and the Company’s totals and includes research and other expenses related to new business development activities, and other corporate items not allocated to the reportable operating segments. | |||||||||||||||||||||||||||||
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; items that principally apply to the Company as a whole are assigned to Corporate. See table toward the end of this footnote for depreciation and amortization by segment, as well as a reconciliation of EBITDA to “Income Before Income Taxes.” | |||||||||||||||||||||||||||||
Corporate Profile | |||||||||||||||||||||||||||||
Dow combines the power of science and technology to passionately innovate what is essential to human progress. The Company is driving innovations that extract value from the intersection of chemical, physical and biological sciences to help address many of the world's most challenging problems such as the need for clean water, clean energy generation and conservation, and increasing agricultural productivity. Dow's integrated, market-driven, industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 180 countries and in high growth sectors such as packaging, electronics, water, coatings and agricultural. In 2014, Dow had annual sales of more than $58 billion and employed approximately 53,000 people worldwide. The Company's more than 6,000 products are manufactured at 201 sites in 35 countries across the globe. The Company conducts its worldwide operations through global businesses, which are reported in five operating segments: Agricultural Sciences, Consumer Solutions, Infrastructure Solutions, Performance Materials & Chemicals and Performance Plastics. | |||||||||||||||||||||||||||||
Agricultural Sciences | |||||||||||||||||||||||||||||
The Agricultural Sciences segment is a global leader in providing crop protection and seed/plant biotechnology products and technologies, urban pest management solutions and healthy oils. The business invents, develops, manufactures and markets products for use in agricultural, industrial and commercial pest management, and food service. Agricultural Sciences consists of two businesses - Crop Protection and Seeds. | |||||||||||||||||||||||||||||
Consumer Solutions | |||||||||||||||||||||||||||||
The Consumer Solutions segment consists of three global businesses: Consumer Care, Dow Automotive Systems and Dow Electronic Materials. These global businesses develop and market customized materials using advanced technology and unique chemistries for specialty applications - including semiconductors and organic light-emitting diodes, adhesives and foams used by the transportation industry, and cellulosics for innovative pharmaceutical formulations and food solutions. These businesses serve the needs of market segments as diverse as: automotive; electronics and entertainment; healthcare and medical; and, personal and home care goods. The Consumer Solutions segment also includes a portion of the Company's share of the results of Dow Corning Corporation, a joint venture that manufactures silicone and silicone products, which is owned 50 percent by the Company. | |||||||||||||||||||||||||||||
Infrastructure Solutions | |||||||||||||||||||||||||||||
The Infrastructure Solutions segment is comprised of an industry-leading portfolio of businesses utilizing advanced technology to deliver products such as architectural and industrial coating applications, building insulation, adhesives, microbial protection for the oil and gas industry, and water technologies. Infrastructure Solutions consists of four global businesses: Dow Building & Construction, Dow Coating Materials, Energy & Water Solutions and Performance Monomers. The Infrastructure Solutions segment also includes a portion of the Company's share of the results of Dow Corning Corporation, a joint venture that manufactures silicone and silicone products, which is owned 50 percent by the Company. | |||||||||||||||||||||||||||||
Performance Materials & Chemicals | |||||||||||||||||||||||||||||
The Performance Materials & Chemicals segment is comprised of five technology-driven, customer-centric global businesses that are advantaged through integration and driven by innovative technology and solutions: Chlor-Alkali and Vinyl, Chlorinated Organics, Epoxy, Industrial Solutions and Polyurethanes. Products produced by this segment are back-integrated into feedstocks, supporting a low-cost manufacturing base and consistent, reliable supply. Performance Materials & Chemicals has a diverse product line that serves customers in a large number of industries including appliance, construction and industrial. The Performance Materials & Chemicals segment also includes the results of MEGlobal and a portion of the results of EQUATE Petrochemicals Company K.S.C., The Kuwait Olefins Company K.S.C., Map Ta Phut Olefins Company Limited, and Sadara Chemical Company, all joint ventures of the Company. | |||||||||||||||||||||||||||||
Performance Plastics | |||||||||||||||||||||||||||||
The Performance Plastics segment is the world’s leading plastics franchise, and is a market-oriented portfolio composed of five global businesses: Dow Elastomers, Dow Electrical and Telecommunications, Dow Packaging and Specialty Plastics, Energy and Hydrocarbons. The segment is advantaged through its low cost position into key feedstocks and benefits from Dow’s R&D expertise to deliver leading-edge technology that provides a competitive benefit to customers in key strategic markets. The Performance Plastics segment also includes the results of Univation Technologies, LLC, The Kuwait Styrene Company K.S.C. and The SCG-Dow Group as well as a portion of the results of EQUATE Petrochemicals Company K.S.C., The Kuwait Olefins Company K.S.C., Map Ta Phut Olefins Limited and the Sadara Chemical Company, all joint ventures of the Company. | |||||||||||||||||||||||||||||
Divestiture: | |||||||||||||||||||||||||||||
On December 2, 2013, the Company sold its Polypropylene Licensing and Catalysts business to W. R. Grace & Co. This business was reported in the Performance Plastics segment through the date of divestiture. See Note 5 for additional information on this divestiture. | |||||||||||||||||||||||||||||
Corporate | |||||||||||||||||||||||||||||
Corporate includes certain enterprise and governance activities (including insurance operations, geographic management, risk management such as foreign currency hedging activities, audit fees, donations, Company branding initiatives, etc.); the results of Ventures (including business incubation platforms, non-business aligned joint ventures, and venture capital); environmental operations; gains and losses on the sales of financial assets; severance costs; non-business aligned litigation expenses (including asbestos-related defense costs and reserve adjustments); and, foreign exchange results. | |||||||||||||||||||||||||||||
The Company operates 201 manufacturing sites in 35 countries. The United States is home to 73 of these sites, representing 59 percent of the Company’s long-lived assets. Sales are attributed to geographic areas based on customer location; long-lived assets are attributed to geographic areas based on asset location. | |||||||||||||||||||||||||||||
Geographic Area Information (1) | United States | Europe, | Rest of World | Total | |||||||||||||||||||||||||
In millions | Middle East, Africa and India | ||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Sales to external customers | $ | 19,449 | $ | 19,671 | $ | 19,047 | $ | 58,167 | |||||||||||||||||||||
Long-lived assets | $ | 10,605 | $ | 2,628 | $ | 4,818 | $ | 18,051 | |||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Sales to external customers | $ | 18,712 | $ | 19,208 | $ | 19,160 | $ | 57,080 | |||||||||||||||||||||
Long-lived assets | $ | 9,320 | $ | 3,256 | $ | 4,878 | $ | 17,454 | |||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Sales to external customers | $ | 18,391 | $ | 20,038 | $ | 18,357 | $ | 56,786 | |||||||||||||||||||||
Long-lived assets | $ | 8,953 | $ | 3,426 | $ | 5,141 | $ | 17,520 | |||||||||||||||||||||
-1 | The Indian subcontinent, previously reported with Rest of World, is now aligned with Europe, Middle East, Africa and India; prior period sales and long-lived assets have been adjusted to reflect this realignment. | ||||||||||||||||||||||||||||
Operating Segment Information | Agri-cultural Sciences | Consumer Solutions | Infra-stucture Solutions | Perf Materials & Chemicals | Perf Plastics | Corp | Total | ||||||||||||||||||||||
In millions | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Sales to external customers | $ | 7,290 | $ | 4,639 | $ | 8,429 | $ | 15,114 | $ | 22,386 | $ | 309 | $ | 58,167 | |||||||||||||||
Intersegment revenues (1) | — | — | — | 100 | — | (100 | ) | — | |||||||||||||||||||||
Equity in earnings (losses) of nonconsolidated affiliates | 4 | 281 | (6 | ) | 322 | 257 | (23 | ) | 835 | ||||||||||||||||||||
Goodwill and other intangible asset impairment losses (2) | — | 50 | — | — | — | — | 50 | ||||||||||||||||||||||
Restructuring charges (credits) (3) | — | — | — | (3 | ) | — | — | (3 | ) | ||||||||||||||||||||
Asbestos-related charge (4) | — | — | — | — | — | 78 | 78 | ||||||||||||||||||||||
EBITDA (5) | 962 | 1,130 | 817 | 2,193 | 4,422 | (580 | ) | 8,944 | |||||||||||||||||||||
Total assets | 7,292 | 9,629 | 12,245 | 12,179 | 13,459 | 13,992 | 68,796 | ||||||||||||||||||||||
Investment in nonconsolidated affiliates | 83 | 691 | 922 | 698 | 705 | 1,102 | 4,201 | ||||||||||||||||||||||
Depreciation and amortization | 208 | 396 | 510 | 780 | 759 | 94 | 2,747 | ||||||||||||||||||||||
Capital expenditures | 383 | 114 | 269 | 315 | 2,490 | 1 | 3,572 | ||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Sales to external customers | $ | 7,137 | $ | 4,562 | $ | 8,339 | $ | 14,824 | $ | 21,910 | $ | 308 | $ | 57,080 | |||||||||||||||
Intersegment revenues (1) | — | — | — | 137 | — | (137 | ) | — | |||||||||||||||||||||
Equity in earnings (losses) of nonconsolidated affiliates | 5 | 107 | 126 | 480 | 355 | (39 | ) | 1,034 | |||||||||||||||||||||
Restructuring charges (credits) (3) | — | — | (1 | ) | (15 | ) | (6 | ) | — | (22 | ) | ||||||||||||||||||
EBITDA (5) | 894 | 933 | 941 | 1,913 | 4,503 | 1,361 | 10,545 | ||||||||||||||||||||||
Total assets | 7,059 | 10,171 | 12,844 | 12,085 | 13,788 | 13,554 | 69,501 | ||||||||||||||||||||||
Investment in nonconsolidated affiliates | 88 | 541 | 1,178 | 827 | 772 | 1,095 | 4,501 | ||||||||||||||||||||||
Depreciation and amortization | 189 | 414 | 528 | 743 | 707 | 100 | 2,681 | ||||||||||||||||||||||
Capital expenditures | 319 | 105 | 198 | 409 | 1,271 | — | 2,302 | ||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Sales to external customers | $ | 6,382 | $ | 4,518 | $ | 8,071 | $ | 14,981 | $ | 22,588 | $ | 246 | $ | 56,786 | |||||||||||||||
Intersegment revenues (1) | — | — | — | 150 | — | (150 | ) | — | |||||||||||||||||||||
Equity in earnings (losses) of nonconsolidated affiliates | 1 | 87 | 58 | 362 | 130 | (102 | ) | 536 | |||||||||||||||||||||
Goodwill and other intangibles impairment losses (2) | — | — | — | 220 | — | — | 220 | ||||||||||||||||||||||
Restructuring charges (credits) (3) | — | 136 | 61 | 299 | 33 | 814 | 1,343 | ||||||||||||||||||||||
EBITDA (5) | 923 | 773 | 963 | 1,603 | 2,924 | (1,595 | ) | 5,591 | |||||||||||||||||||||
Total assets | 6,368 | 10,597 | 13,104 | 13,164 | 13,560 | 12,812 | 69,605 | ||||||||||||||||||||||
Investment in nonconsolidated affiliates | 86 | 422 | 1,081 | 790 | 744 | 998 | 4,121 | ||||||||||||||||||||||
Depreciation and amortization | 176 | 416 | 542 | 783 | 672 | 109 | 2,698 | ||||||||||||||||||||||
Capital expenditures | 321 | 244 | 292 | 759 | 951 | 47 | 2,614 | ||||||||||||||||||||||
-1 | Includes revenues generated by transfers of product to Agricultural Sciences from other segments, generally at market-based prices. Other transfers of products between operating segments are generally valued at cost. | ||||||||||||||||||||||||||||
-2 | See Note 11 for information regarding intangible asset impairment losses and Note 9 for information regarding the goodwill impairment loss. | ||||||||||||||||||||||||||||
-3 | See Note 3 for information regarding restructuring charges and credits. | ||||||||||||||||||||||||||||
-4 | See Note 14 for information regarding the asbestos-related charge. | ||||||||||||||||||||||||||||
-5 | A reconciliation of EBITDA to “Income Before Income Taxes” is provided below. | ||||||||||||||||||||||||||||
Reconciliation of EBITDA to “Income Before Income Taxes” | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
In millions | |||||||||||||||||||||||||||||
EBITDA | $ | 8,944 | $ | 10,545 | $ | 5,591 | |||||||||||||||||||||||
- Depreciation and amortization | 2,747 | 2,681 | 2,698 | ||||||||||||||||||||||||||
+ Interest income | 51 | 41 | 41 | ||||||||||||||||||||||||||
- Interest expense and amortization of debt discount | 983 | 1,101 | 1,269 | ||||||||||||||||||||||||||
Income Before Income Taxes | $ | 5,265 | $ | 6,804 | $ | 1,665 | |||||||||||||||||||||||
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | |||||||||||||||||||||||||
The Dow Chemical Company and Subsidiaries | Schedule II | ||||||||||||||||||||||||
Valuation and Qualifying Accounts | |||||||||||||||||||||||||
In millions | For the Years Ended December 31 | ||||||||||||||||||||||||
COLUMN A | COLUMN B | COLUMN C - Additions | COLUMN D | COLUMN E | |||||||||||||||||||||
Description | Balance | Charged to Costs and Expenses | Charged to Other Accounts | Deductions | Balance | ||||||||||||||||||||
at Beginning | from | at End | |||||||||||||||||||||||
of Year | Reserves | of Year | |||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
RESERVES DEDUCTED FROM ASSETS TO WHICH THEY APPLY: | |||||||||||||||||||||||||
For doubtful receivables | $ | 148 | $ | 53 | $ | 8 | -1 | $ | 99 | -2 | $ | 110 | |||||||||||||
Other investments and noncurrent receivables | $ | 454 | $ | 62 | $ | — | $ | 39 | $ | 477 | |||||||||||||||
Deferred tax assets | $ | 1,112 | $ | 126 | $ | — | $ | 132 | $ | 1,106 | |||||||||||||||
2013 | |||||||||||||||||||||||||
RESERVES DEDUCTED FROM ASSETS TO WHICH THEY APPLY: | |||||||||||||||||||||||||
For doubtful receivables | $ | 121 | $ | 65 | $ | — | $ | 38 | -2 | $ | 148 | ||||||||||||||
Other investments and noncurrent receivables | $ | 467 | $ | 39 | $ | — | $ | 52 | $ | 454 | |||||||||||||||
Deferred tax assets | $ | 1,399 | $ | 214 | $ | — | $ | 501 | $ | 1,112 | |||||||||||||||
2012 | |||||||||||||||||||||||||
RESERVES DEDUCTED FROM ASSETS TO WHICH THEY APPLY: | |||||||||||||||||||||||||
For doubtful receivables | $ | 121 | $ | 81 | $ | 11 | -1 | $ | 92 | -2 | $ | 121 | |||||||||||||
Other investments and noncurrent receivables | $ | 458 | $ | 25 | $ | — | $ | 16 | $ | 467 | |||||||||||||||
Deferred tax assets | $ | 1,152 | $ | 335 | $ | — | $ | 88 | $ | 1,399 | |||||||||||||||
-1 | Additions to reserves for doubtful receivables charged to other accounts were classified as "Accounts and notes receivable - Other" in the consolidated balance sheets. These reserves relate to the Company's sale of trade accounts receivable. Anticipated credit losses in the portfolio of receivables sold are used to fair value the Company's interests held in trade accounts receivable conduits. See Notes 11 and 15 to the Consolidated Financial Statements for further information. | ||||||||||||||||||||||||
-2 | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Deductions represent: | |||||||||||||||||||||||||
Notes and accounts receivable written off | $ | 32 | $ | 28 | $ | 62 | |||||||||||||||||||
Reclassification of reserve for cash discounts and returns to accounts receivable | — | — | 21 | ||||||||||||||||||||||
Credits to profit and loss | 38 | 7 | 1 | ||||||||||||||||||||||
Sale of trade accounts receivable (see Note 15 to the Consolidated Financial Statements) | — | 1 | 3 | ||||||||||||||||||||||
Miscellaneous other | 29 | 2 | 5 | ||||||||||||||||||||||
$ | 99 | $ | 38 | $ | 92 | ||||||||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation and Basis of Presentation |
The accompanying 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 include the assets, liabilities, revenues and expenses of all majority-owned subsidiaries over which the Company exercises control and, when applicable, entities for which the Company has a controlling financial interest or is the primary beneficiary. Intercompany transactions and balances are eliminated in consolidation. Investments in nonconsolidated affiliates (20-50 percent owned companies, joint ventures and partnerships) are accounted for using the equity method. | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates in Financial Statement Preparation |
The preparation of financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company’s consolidated financial statements include amounts that are based on management’s best estimates and judgments. Actual results could differ from those estimates. | |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation |
The local currency has been primarily used as the functional currency throughout the world. Translation gains and losses of those operations that use local currency as the functional currency are included in the consolidated balance sheets in “Accumulated other comprehensive loss” (“AOCL”). Where the U.S. dollar is used as the functional currency or when the foreign subsidiary operates in a hyper-inflationary environment, foreign currency translation gains and losses are reflected in income. | |
Environmental Costs, Policy [Policy Text Block] | Environmental Matters |
Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated based on current law and existing technologies. These accruals are adjusted periodically as assessment and remediation efforts progress or as additional technical or legal information becomes available. Accruals for environmental liabilities are included in the consolidated balance sheets in “Accrued and other current liabilities” and “Other noncurrent obligations” at undiscounted amounts. Accruals for related insurance or other third-party recoveries for environmental liabilities are recorded when it is probable that a recovery will be realized and are included in the consolidated balance sheets as “Accounts and notes receivable - Other.” | |
Environmental costs are capitalized if the costs extend the life of the property, increase its capacity, and/or mitigate or prevent contamination from future operations. Environmental costs are also capitalized in recognition of legal asset retirement obligations resulting from the acquisition, construction and/or normal operation of a long-lived asset. Costs related to environmental contamination treatment and cleanup are charged to expense. Estimated future incremental operations, maintenance and management costs directly related to remediation are accrued when such costs are probable and reasonably estimable. | |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents |
Cash and cash equivalents include time deposits and investments with maturities of three months or less at the time of purchase. | |
Financial Instruments Accounting Policies [Text Block] | Financial Instruments |
The Company calculates the fair value of financial instruments using quoted market prices whenever available. When quoted market prices are not available for various types of financial instruments (such as forwards, options and swaps), the Company uses standard pricing models with market-based inputs that take into account the present value of estimated future cash flows. | |
The Company utilizes derivatives to manage exposures to foreign currency exchange rates, commodity prices and interest rate risk. The fair values of all derivatives are recognized as assets or liabilities at the balance sheet date. Changes in the fair value of these instruments are reported in income or AOCL, depending on the use of the derivative and whether it qualifies for hedge accounting treatment. | |
Gains and losses on derivatives that are designated and qualify as cash flow hedging instruments are recorded in AOCL, to the extent the hedges are effective, until the underlying transactions are recognized in income. To the extent effective, gains and losses on derivative and nonderivative instruments used as hedges of the Company’s net investment in foreign operations are recorded in AOCL as part of the cumulative translation adjustment. The ineffective portions of cash flow hedges and hedges of net investment in foreign operations, if any, are recognized in income immediately. | |
Gains and losses on derivatives designated and qualifying as fair value hedging instruments, as well as the offsetting losses and gains on the hedged items, are reported in income in the same accounting period. Derivatives not designated as hedging instruments are marked-to-market at the end of each accounting period with the results included in income. | |
Inventory, Policy [Policy Text Block] | Inventories |
Inventories are stated at the lower of cost or market. The method of determining cost for each subsidiary varies among last-in, first-out (“LIFO”); first-in, first-out (“FIFO”); and average cost, and is used consistently from year to year. | |
The Company routinely exchanges and swaps raw materials and finished goods with other companies to reduce delivery time, freight and other transportation costs. These transactions are treated as non-monetary exchanges and are valued at cost. | |
Property, Plant and Equipment, Policy [Policy Text Block] | Property |
Land, buildings and equipment, including property under capital lease agreements, are carried at cost less accumulated depreciation. Depreciation is based on the estimated service lives of depreciable assets and is calculated using the straight-line method, unless the asset was capitalized before 1997 when the declining balance method was used. Fully depreciated assets are retained in property and accumulated depreciation accounts until they are removed from service. In the case of disposals, assets and related accumulated depreciation are removed from the accounts, and the net amounts, less proceeds from disposal, are included in income. | |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment and Disposal of Long-Lived Assets |
The Company evaluates long-lived assets and certain identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When undiscounted future cash flows are not expected to be sufficient to recover an asset’s carrying amount, the asset is written down to its fair value based on bids received from third parties or a discounted cash flow analysis based on market participant assumptions. | |
Long-lived assets to be disposed of by sale, if material, are classified as held for sale and reported at the lower of carrying amount or fair value less cost to sell, and depreciation is ceased. Long-lived assets to be disposed of other than by sale are classified as held and used until they are disposed of and reported at the lower of carrying amount or fair value, and depreciation is recognized over the remaining useful life of the assets. | |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangible Assets |
The Company records goodwill when the purchase price of a business acquisition exceeds the estimated fair value of net identified tangible and intangible assets acquired. Goodwill is tested for impairment at the reporting unit level annually, or more frequently when events or changes in circumstances indicate that the fair value of a reporting unit has more likely than not declined below its carrying value. When testing goodwill for impairment, the Company may first assess qualitative factors. If an initial qualitative assessment identifies that it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value, additional quantitative testing is performed. The Company may also elect to skip the qualitative testing and proceed directly to the quantitative testing. If the quantitative testing indicates that goodwill is impaired, the carrying value of goodwill is written down to fair value. The Company primarily utilizes a discounted cash flow methodology to calculate the fair value of its reporting units. See Note 9 for further information on goodwill. | |
Finite-lived intangible assets such as purchased customer lists, licenses, intellectual property, patents, trademarks and software, are amortized over their estimated useful lives, generally on a straight-line basis for periods ranging primarily from three to twenty years. Finite-lived intangible assets are reviewed for impairment or obsolescence annually, or more frequently when events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable. If impaired, intangible assets are written down to fair value based on discounted cash flows. | |
Asset Retirement Obligations, Policy [Policy Text Block] | Asset Retirement Obligations |
The Company records asset retirement obligations as incurred and reasonably estimable, including obligations for which the timing and/or method of settlement are conditional on a future event that may or may not be within the control of the Company. The fair values of obligations are recorded as liabilities on a discounted basis and are accreted over time for the change in present value. Costs associated with the liabilities are capitalized and amortized over the estimated remaining useful life of the asset, generally for periods of 10 years or less. | |
Investment, Policy [Policy Text Block] | Investments |
Investments in debt and marketable equity securities (including warrants), primarily held by the Company’s insurance operations, are classified as trading, available-for-sale or held-to-maturity. Investments classified as trading are reported at fair value with unrealized gains and losses related to mark-to-market adjustments included in income. Those classified as available-for-sale are reported at fair value with unrealized gains and losses recorded in AOCL. Those classified as held-to-maturity are recorded at amortized cost. The cost of investments sold is determined by FIFO or specific identification. The Company routinely reviews available-for-sale and held-to-maturity securities for other-than-temporary declines in fair value below the cost basis. When events or changes in circumstances indicate the carrying value of an asset may not be recoverable, the security is written down to fair value, establishing a new cost basis. | |
Revenue Recognition, Policy [Policy Text Block] | Revenue |
Sales are recognized when the revenue is realized or realizable, and the earnings process is complete. Approximately 99 percent of the Company’s sales in 2014 related to sales of product (99 percent in 2013 and 99 percent in 2012). The remaining 1 percent in 2014 related to the Company’s service offerings, insurance operations, and licensing of patents and technology (1 percent in 2013 and 1 percent in 2012). Revenue for product sales is recognized as risk and title to the product transfer to the customer, which usually occurs at the time shipment is made. As such, title to the product passes when the product is delivered to the freight carrier. Dow’s standard terms of delivery are included in its contracts of sale, order confirmation documents and invoices. Freight costs and any directly related costs of transporting finished product to customers are recorded as “Cost of sales” in the consolidated statements of income. | |
Revenue related to the Company’s insurance operations includes third-party insurance premiums, which are earned over the terms of the related insurance policies and reinsurance contracts. Revenue related to the initial licensing of patents and technology is recognized when earned; revenue related to running royalties is recognized according to licensee production levels. | |
Legal Costs, Policy [Policy Text Block] | Legal Costs |
The Company expenses legal costs as incurred. Accruals for legal matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. | |
Severance Costs [Policy Text Block] | Severance Costs |
The Company routinely reviews its operations around the world in an effort to ensure competitiveness across its businesses and geographic areas. When the reviews result in a workforce reduction related to the shutdown of facilities or other optimization activities, severance benefits are provided to employees primarily under Dow’s ongoing benefit arrangements. These severance costs are accrued once management commits to a plan of termination including the number of employees to be terminated, their job classifications or functions, their locations and the expected termination date. | |
Income Tax, Policy [Policy Text Block] | Income Taxes |
The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities using enacted tax rates. The effect of a change in tax rates on deferred tax assets or liabilities is recognized in income in the period that includes the enactment date. | |
Annual tax provisions include amounts considered sufficient to pay assessments that may result from examinations of prior year tax returns; however, the amount ultimately paid upon resolution of issues raised may differ from the amounts accrued. | |
The Company recognizes the financial statement effects of an uncertain income tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. The Company accrues for other tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated. The current portion of uncertain income tax positions is included in “Income taxes payable” and the long-term portion is included in “Other noncurrent obligations” in the consolidated balance sheets. | |
Provision is made for taxes on undistributed earnings of foreign subsidiaries and related companies to the extent that such earnings are not deemed to be permanently invested. | |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Common Share |
The calculation of earnings per common share is based on the weighted-average number of the Company’s common shares outstanding for the applicable period. The calculation of diluted earnings per common share reflects the effect of all dilutive potential common shares that were outstanding during the respective periods, unless the effect of doing so is antidilutive. |
RESTRUCTURING_Tables
RESTRUCTURING (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||
Restructuring and Related Costs 4Q12 [Table Text Block] | |||||||||||||||||
4Q12 Restructuring Charges by Operating Segment | Costs Associated with Exit or Disposal Activities | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments | |||||||||||||||
In millions | Severance Costs | Total | |||||||||||||||
Consumer Solutions | $ | — | $ | — | $ | 136 | $ | 136 | |||||||||
Infrastructure Solutions | — | — | 24 | 24 | |||||||||||||
Performance Materials & Chemicals | 19 | — | 77 | 96 | |||||||||||||
Performance Plastics | 8 | — | 25 | 33 | |||||||||||||
Corporate | 12 | 375 | 314 | 701 | |||||||||||||
Total 4Q12 Restructuring charges | $ | 39 | $ | 375 | $ | 576 | $ | 990 | |||||||||
Adjustments to 4Q12 Restructuring charges | |||||||||||||||||
2013 - Performance Plastics | (6 | ) | — | — | (6 | ) | |||||||||||
2014 - Performance Materials & Chemicals | (3 | ) | — | — | (3 | ) | |||||||||||
Net 4Q12 Restructuring charges | $ | 30 | $ | 375 | $ | 576 | $ | 981 | |||||||||
Schedule of Restructuring Reserve by Type of Cost 4Q12 [Table Text Block] | |||||||||||||||||
4Q12 Restructuring Activities | Costs Associated with Exit or Disposal Activities | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments | |||||||||||||||
In millions | Severance Costs | Total | |||||||||||||||
Restructuring charges recognized in the fourth quarter of 2012 | $ | 39 | $ | 375 | $ | 576 | $ | 990 | |||||||||
Charges against the reserve | (9 | ) | — | (576 | ) | (585 | ) | ||||||||||
Cash payments | — | (8 | ) | — | (8 | ) | |||||||||||
Reserve balance at December 31, 2012 | $ | 30 | $ | 367 | $ | — | $ | 397 | |||||||||
Adjustments to the reserve | (6 | ) | — | — | (6 | ) | |||||||||||
Cash payments | (5 | ) | (228 | ) | — | (233 | ) | ||||||||||
Reserve balance at December 31, 2013 | $ | 19 | $ | 139 | $ | — | $ | 158 | |||||||||
Adjustments to the reserve | (3 | ) | — | — | (3 | ) | |||||||||||
Cash payments | (4 | ) | (106 | ) | — | (110 | ) | ||||||||||
Reserve balance at December 31, 2014 | $ | 12 | $ | 33 | $ | — | $ | 45 | |||||||||
Restructuring and Related Costs [Table Text Block] | |||||||||||||||||
1Q12 Restructuring Charges by Operating Segment | Costs Associated with Exit or Disposal Activities | Impairment of Long-Lived Assets and Other Assets | |||||||||||||||
In millions | Severance Costs | Total | |||||||||||||||
Infrastructure Solutions | $ | 4 | $ | — | $ | 37 | $ | 41 | |||||||||
Performance Materials & Chemicals | 146 | — | 57 | 203 | |||||||||||||
Corporate | — | 113 | — | 113 | |||||||||||||
Total 1Q12 Restructuring charges | $ | 150 | $ | 113 | $ | 94 | $ | 357 | |||||||||
Adjustment to 1Q12 Restructuring charges: | |||||||||||||||||
2012 - Infrastructure Solutions | — | — | (4 | ) | (4 | ) | |||||||||||
2013 - Infrastructure Solutions | (1 | ) | — | — | (1 | ) | |||||||||||
2013 - Performance Materials & Chemicals | (15 | ) | — | — | (15 | ) | |||||||||||
Net 1Q12 Restructuring charges | $ | 134 | $ | 113 | $ | 90 | $ | 337 | |||||||||
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 | Impairment of Long-Lived Assets and Other Assets | Total | ||||||||||||||
Restructuring charges recognized in the first quarter of 2012 | $ | 150 | $ | 113 | $ | 94 | $ | 357 | |||||||||
Adjustments to the reserve | — | — | (4 | ) | (4 | ) | |||||||||||
Charges against the reserve | — | — | (90 | ) | (90 | ) | |||||||||||
Cash payments | (45 | ) | (82 | ) | — | (127 | ) | ||||||||||
Noncash settlements | (47 | ) | — | — | (47 | ) | |||||||||||
Foreign currency impact | (2 | ) | — | — | (2 | ) | |||||||||||
Reserve balance at December 31, 2012 | $ | 56 | $ | 31 | $ | — | $ | 87 | |||||||||
Adjustments to the reserve | (16 | ) | — | — | (16 | ) | |||||||||||
Cash payments | (15 | ) | (28 | ) | — | (43 | ) | ||||||||||
Noncash settlements | (8 | ) | — | — | (8 | ) | |||||||||||
Foreign currency impact | (1 | ) | — | — | (1 | ) | |||||||||||
Reserve balance at December 31, 2013 | $ | 16 | $ | 3 | $ | — | $ | 19 | |||||||||
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of Inventory, Current [Table Text Block] | ||||||||
Inventories at December 31 | 2014 | 2013 | ||||||
In millions | ||||||||
Finished goods | $ | 4,547 | $ | 4,717 | ||||
Work in process | 1,905 | 1,948 | ||||||
Raw materials | 797 | 760 | ||||||
Supplies | 852 | 878 | ||||||
Total inventories | $ | 8,101 | $ | 8,303 | ||||
PROPERTY_Tables
PROPERTY (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||
Schedule of property | |||||||||||||
Property at December 31 | Estimated Useful | 2014 | 2013 | ||||||||||
In millions | Lives (Years) | ||||||||||||
Land | — | $ | 874 | $ | 907 | ||||||||
Land and waterway improvements | 15-25 | 1,374 | 1,404 | ||||||||||
Buildings | May-55 | 4,910 | 4,945 | ||||||||||
Machinery and equipment | 20-Mar | 39,278 | 39,971 | ||||||||||
Utility and supply lines | 20-May | 2,448 | 2,446 | ||||||||||
Other property | Mar-50 | 1,940 | 2,430 | ||||||||||
Construction in progress | — | 4,406 | 3,011 | ||||||||||
Total property | $ | 55,230 | $ | 55,114 | |||||||||
Schedule of other items related to property | |||||||||||||
In millions | 2014 | 2013 | 2012 | ||||||||||
Depreciation expense | $ | 2,136 | $ | 2,051 | $ | 2,057 | |||||||
Manufacturing maintenance and repair costs | $ | 2,117 | $ | 2,325 | $ | 2,188 | |||||||
Capitalized interest | $ | 125 | $ | 78 | $ | 84 | |||||||
NONCONSOLIDATED_AFFILIATES_AND1
NONCONSOLIDATED AFFILIATES AND RELATED COMPANY TRANSACTIONS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||
Balances Due To or Due From Nonconsolidated Affiliates [Table Text Block] | |||||||||||||
Balances Due To or Due From Nonconsolidated Affiliates at December 31 | |||||||||||||
In millions | 2014 | 2013 | |||||||||||
Accounts and notes receivable - other | $ | 511 | $ | 512 | |||||||||
Noncurrent receivables (1) | 212 | 5 | |||||||||||
Total assets | $ | 723 | $ | 517 | |||||||||
Notes payable | $ | 189 | $ | 137 | |||||||||
Accounts payable - other | 274 | 221 | |||||||||||
Total current liabilities | $ | 463 | $ | 358 | |||||||||
-1 | Included in "Noncurrent receivables" is a $193 million note receivable from Sadara that is expected to be converted into equity in the first quarter of 2015. | ||||||||||||
Equity Method Investment [Table Text Block] | |||||||||||||
Principal Nonconsolidated Affiliates at December 31 | Ownership Interest | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Dow Corning Corporation | 50 | % | 50 | % | 50 | % | |||||||
EQUATE Petrochemical Company K.S.C. (1) | 42.5 | % | 42.5 | % | 42.5 | % | |||||||
The Kuwait Olefins Company K.S.C. (1) | 42.5 | % | 42.5 | % | 42.5 | % | |||||||
The Kuwait Styrene Company K.S.C. (1) (2) | 42.5 | % | N/A | N/A | |||||||||
Map Ta Phut Olefins Company Limited (3) | 32.77 | % | 32.77 | % | 32.77 | % | |||||||
MEGlobal (1) | 50 | % | 50 | % | 50 | % | |||||||
Sadara Chemical Company | 35 | % | 35 | % | 35 | % | |||||||
The SCG-Dow Group: | |||||||||||||
Siam Polyethylene Company Limited | 50 | % | 50 | % | 50 | % | |||||||
Siam Polystyrene Company Limited | 50 | % | 50 | % | 50 | % | |||||||
Siam Styrene Monomer Co., Ltd. | 50 | % | 50 | % | 50 | % | |||||||
Siam Synthetic Latex Company Limited | 50 | % | 50 | % | 50 | % | |||||||
Univation Technologies, LLC (4) | 50 | % | 50 | % | 50 | % | |||||||
-1 | In the fourth quarter of 2014, the Company announced it will reconfigure and reduce its equity base in EQUATE Petrochemical Company K.S.C., The Kuwait Olefins Company K.S.C., The Kuwait Styrene Company K.S.C. and MEGlobal through a divestment of a portion of the Company’s interests. Dow expects such transaction(s) to be completed by mid-2016. | ||||||||||||
-2 | The Kuwait Styrene Company K.S.C. was added as a principal nonconsolidated affiliate in the fourth quarter of 2014. | ||||||||||||
-3 | The Company's effective ownership of Map Ta Phut Olefins Company Limited is 32.77 percent, of which the Company directly owns 20.27 percent and indirectly owns 12.5 percent through its equity interest in Siam Polyethylene Company Limited and Siam Synthetic Latex Company Limited. | ||||||||||||
-4 | On October 2, 2014, the Company reached a definitive agreement with ExxonMobil Chemical Company to acquire the remaining 50 percent ownership interest in Univation Technologies, LLC ("Univation"), which will result in Univation becoming a wholly owned subsidiary of Dow. The transaction is expected to close in the first half of 2015, pending regulatory approvals. | ||||||||||||
Equity Method Investment Summarized Balance Sheet Information [Table Text Block] | |||||||||||||
Summarized Balance Sheet Information at December 31 | |||||||||||||
In millions | 2014 | 2013 (1) | |||||||||||
Current assets | $ | 9,611 | $ | 8,675 | |||||||||
Noncurrent assets | 27,025 | 24,166 | |||||||||||
Total assets | $ | 36,636 | $ | 32,841 | |||||||||
Current liabilities | $ | 6,321 | $ | 5,972 | |||||||||
Noncurrent liabilities | 21,047 | 17,129 | |||||||||||
Total liabilities | $ | 27,368 | $ | 23,101 | |||||||||
Noncontrolling interests | $ | 666 | $ | 624 | |||||||||
-1 | The summarized balance sheet information for 2013 does not include the results of The Kuwait Styrene Company K.S.C. as this entity became a principal nonconsolidated affiliate in 2014. | ||||||||||||
Equity Method Investment Summarized Income Statement Information [Table Text Block] | |||||||||||||
Summarized Income Statement Information | |||||||||||||
In millions | 2014 | 2013 (1) | 2012 (1) | ||||||||||
Sales | $ | 19,333 | $ | 18,257 | $ | 17,668 | |||||||
Gross profit | $ | 3,526 | $ | 3,403 | $ | 2,911 | |||||||
Net income | $ | 1,673 | $ | 1,906 | $ | 872 | |||||||
-1 | The summarized income statement information for 2013 and 2012 does not include the results of The Kuwait Styrene Company K.S.C. as this entity became a principal nonconsolidated affiliate in 2014. |
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Goodwill By Operating Segment | ||||||||||||||||||||||||
2014 Goodwill | Agricultural | Consumer Solutions | Infrastructure Solutions | Performance | Performance Plastics | Total | ||||||||||||||||||
In millions | Sciences | Materials & Chemicals | ||||||||||||||||||||||
Gross goodwill at Jan 1, 2014 | $ | 1,563 | $ | 4,618 | $ | 4,540 | $ | 1,041 | $ | 1,465 | $ | 13,227 | ||||||||||||
Accumulated impairments at Jan 1, 2014 | — | (209 | ) | — | (220 | ) | — | (429 | ) | |||||||||||||||
Net goodwill at Jan 1, 2014 | $ | 1,563 | $ | 4,409 | $ | 4,540 | $ | 821 | $ | 1,465 | $ | 12,798 | ||||||||||||
Purchase price adjustment of a seed company | (5 | ) | — | — | — | — | (5 | ) | ||||||||||||||||
Foreign currency impact | — | (20 | ) | (89 | ) | (12 | ) | (40 | ) | (161 | ) | |||||||||||||
Net goodwill at Dec 31, 2014 | $ | 1,558 | $ | 4,389 | $ | 4,451 | $ | 809 | $ | 1,425 | $ | 12,632 | ||||||||||||
Accumulated impairments at Dec 31, 2014 | — | 209 | — | 220 | — | 429 | ||||||||||||||||||
Gross goodwill at Dec 31, 2014 | $ | 1,558 | $ | 4,598 | $ | 4,451 | $ | 1,029 | $ | 1,425 | $ | 13,061 | ||||||||||||
2013 Goodwill | Agricultural | Consumer Solutions | Infrastructure Solutions | Performance | Performance Plastics | Total | ||||||||||||||||||
In millions | Sciences | Materials & Chemicals | ||||||||||||||||||||||
Gross goodwill at Jan 1, 2013 | $ | 1,558 | $ | 4,611 | $ | 4,511 | $ | 1,037 | $ | 1,451 | $ | 13,168 | ||||||||||||
Accumulated impairments at Jan 1, 2013 | — | (209 | ) | — | (220 | ) | — | (429 | ) | |||||||||||||||
Net goodwill at Jan 1, 2013 | $ | 1,558 | $ | 4,402 | $ | 4,511 | $ | 817 | $ | 1,451 | $ | 12,739 | ||||||||||||
Acquisition of a seed company | 5 | — | — | — | — | 5 | ||||||||||||||||||
Sale of a Performance Monomers product line | — | — | (3 | ) | — | — | (3 | ) | ||||||||||||||||
Foreign currency impact | — | 7 | 32 | 4 | 14 | 57 | ||||||||||||||||||
Net goodwill at Dec 31, 2013 | $ | 1,563 | $ | 4,409 | $ | 4,540 | $ | 821 | $ | 1,465 | $ | 12,798 | ||||||||||||
Accumulated impairments at Dec 31, 2013 | — | 209 | — | 220 | — | 429 | ||||||||||||||||||
Gross goodwill at Dec 31, 2013 | $ | 1,563 | $ | 4,618 | $ | 4,540 | $ | 1,041 | $ | 1,465 | $ | 13,227 | ||||||||||||
Other Intangible Assets | ||||||||||||||||||||||||
Other Intangible Assets at December 31 | 2014 | 2013 | ||||||||||||||||||||||
In millions | Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Intangible assets with finite lives: | ||||||||||||||||||||||||
Licenses and intellectual property | $ | 1,777 | $ | (1,060 | ) | $ | 717 | $ | 1,774 | $ | (908 | ) | $ | 866 | ||||||||||
Patents | 122 | (108 | ) | 14 | 125 | (109 | ) | 16 | ||||||||||||||||
Software | 1,287 | (648 | ) | 639 | 1,186 | (591 | ) | 595 | ||||||||||||||||
Trademarks | 685 | (409 | ) | 276 | 686 | (345 | ) | 341 | ||||||||||||||||
Customer-related | 3,443 | (1,366 | ) | 2,077 | 3,622 | (1,181 | ) | 2,441 | ||||||||||||||||
Other | 158 | (146 | ) | 12 | 154 | (136 | ) | 18 | ||||||||||||||||
Total other intangible assets, finite lives | $ | 7,472 | $ | (3,737 | ) | $ | 3,735 | $ | 7,547 | $ | (3,270 | ) | $ | 4,277 | ||||||||||
IPR&D (1), indefinite lives | 33 | — | 33 | 37 | — | 37 | ||||||||||||||||||
Total other intangible assets | $ | 7,505 | $ | (3,737 | ) | $ | 3,768 | $ | 7,584 | $ | (3,270 | ) | $ | 4,314 | ||||||||||
(1) In-process research and development ("IPR&D") purchased in a business combination. | ||||||||||||||||||||||||
Schedule of Amortization Expense of Intangible Assets | ||||||||||||||||||||||||
Amortization Expense | 2014 | 2013 | 2012 | |||||||||||||||||||||
In millions | ||||||||||||||||||||||||
Other intangible assets, excluding software (1) | $ | 436 | $ | 461 | $ | 478 | ||||||||||||||||||
Software, included in “Cost of sales” | $ | 70 | $ | 67 | $ | 63 | ||||||||||||||||||
(1) Includes a $3 million asset impairment charge related to intangible assets in 2013. | ||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ||||||||||||||||||||||||
Estimated Amortization Expense | ||||||||||||||||||||||||
for Next Five Years | ||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||
2015 | $ | 485 | ||||||||||||||||||||||
2016 | $ | 476 | ||||||||||||||||||||||
2017 | $ | 445 | ||||||||||||||||||||||
2018 | $ | 424 | ||||||||||||||||||||||
2019 | $ | 359 | ||||||||||||||||||||||
FINANCIAL_INSTRUMENTS_Tables
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Financial Instruments [Abstact] | ||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments at December 31 | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
In millions | Cost | Gain | Loss | Fair | Cost | Gain | Loss | Fair | ||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||
Marketable securities: (1) | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
Government debt (2) | $ | 559 | $ | 26 | $ | (1 | ) | $ | 584 | $ | 544 | $ | 28 | $ | (8 | ) | $ | 564 | ||||||||||||||
Corporate bonds | 654 | 45 | (2 | ) | 697 | 659 | 43 | (7 | ) | 695 | ||||||||||||||||||||||
Total debt securities | $ | 1,213 | $ | 71 | $ | (3 | ) | $ | 1,281 | $ | 1,203 | $ | 71 | $ | (15 | ) | $ | 1,259 | ||||||||||||||
Equity securities | 566 | 177 | (15 | ) | 728 | 605 | 196 | (4 | ) | 797 | ||||||||||||||||||||||
Total marketable securities | $ | 1,779 | $ | 248 | $ | (18 | ) | $ | 2,009 | $ | 1,808 | $ | 267 | $ | (19 | ) | $ | 2,056 | ||||||||||||||
Long-term debt including debt due within one year (3) | $ | (19,232 | ) | $ | 100 | $ | (2,318 | ) | $ | (21,450 | ) | $ | (17,517 | ) | $ | 296 | $ | (2,246 | ) | $ | (19,467 | ) | ||||||||||
Derivatives relating to: | ||||||||||||||||||||||||||||||||
Interest rates | $ | — | $ | — | $ | (12 | ) | $ | (12 | ) | $ | — | $ | — | $ | (5 | ) | $ | (5 | ) | ||||||||||||
Commodities (4) | $ | — | $ | 3 | $ | (81 | ) | $ | (78 | ) | $ | — | $ | 11 | $ | (2 | ) | $ | 9 | |||||||||||||
Foreign currency | $ | — | $ | 26 | $ | (71 | ) | $ | (45 | ) | $ | — | $ | 45 | $ | (13 | ) | $ | 32 | |||||||||||||
-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 $21 million at December 31, 2014 and $22 million at December 31, 2013. | |||||||||||||||||||||||||||||||
-4 | Presented net of cash collateral, as disclosed in Note 11. | |||||||||||||||||||||||||||||||
Investing Results | ||||||||||||||||||||||||||||||||
Investing Results | ||||||||||||||||||||||||||||||||
In millions | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Proceeds from sales of available-for-sale securities | $ | 675 | $ | 486 | $ | 514 | ||||||||||||||||||||||||||
Gross realized gains | $ | 99 | $ | 66 | $ | 40 | ||||||||||||||||||||||||||
Gross realized losses | $ | (6 | ) | $ | (4 | ) | $ | (11 | ) | |||||||||||||||||||||||
Contractual Maturities of Debt Securities | ||||||||||||||||||||||||||||||||
Contractual Maturities of Debt Securities | ||||||||||||||||||||||||||||||||
at December 31, 2014 | ||||||||||||||||||||||||||||||||
In millions | Amortized Cost | Fair Value | ||||||||||||||||||||||||||||||
Within one year | $ | 8 | $ | 9 | ||||||||||||||||||||||||||||
One to five years | 496 | 517 | ||||||||||||||||||||||||||||||
Six to ten years | 503 | 521 | ||||||||||||||||||||||||||||||
After ten years | 206 | 234 | ||||||||||||||||||||||||||||||
Total | $ | 1,213 | $ | 1,281 | ||||||||||||||||||||||||||||
Fair Value and Gross Unrealized Losses of Investments Temporarily Impaired | ||||||||||||||||||||||||||||||||
Temporarily Impaired Securities at December 31 (1) | 2014 | 2013 | ||||||||||||||||||||||||||||||
Less than 12 months | Less than 12 months | |||||||||||||||||||||||||||||||
In millions | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||||||||
Value | Losses | Value | Losses | |||||||||||||||||||||||||||||
Government debt (2) | $ | 74 | $ | (1 | ) | $ | 160 | $ | (8 | ) | ||||||||||||||||||||||
Corporate bonds | 102 | (1 | ) | 213 | (7 | ) | ||||||||||||||||||||||||||
Equity securities | 175 | (15 | ) | 144 | (4 | ) | ||||||||||||||||||||||||||
Total temporarily impaired securities | $ | 351 | $ | (17 | ) | $ | 517 | $ | (19 | ) | ||||||||||||||||||||||
-1 | Unrealized losses of 12 months or more were $1 million at December 31, 2014 and less than $1 million at December 31, 2013. | |||||||||||||||||||||||||||||||
-2 | U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities' obligations. | |||||||||||||||||||||||||||||||
Notional Amount of Hedge Commodity Contracts | ||||||||||||||||||||||||||||||||
Commodity | Dec 31, 2014 | Dec 31, | Notional Volume Unit | |||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||
Corn | 1.3 | 2.7 | million bushels | |||||||||||||||||||||||||||||
Crude Oil | 0.5 | 0.5 | million barrels | |||||||||||||||||||||||||||||
Ethane | 0.9 | 1 | million barrels | |||||||||||||||||||||||||||||
Naphtha | — | 3 | kilotons | |||||||||||||||||||||||||||||
Natural Gas | 192.5 | 82.9 | million million British thermal units | |||||||||||||||||||||||||||||
Soybeans | 1.2 | 0.8 | million bushels | |||||||||||||||||||||||||||||
Notional Amount of Non-Hedge Commodity Contracts | ||||||||||||||||||||||||||||||||
Commodity | Dec 31, | Dec 31, | Notional Volume Unit | |||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Ethane | 0.2 | 0.3 | million barrels | |||||||||||||||||||||||||||||
Gasoline | 15 | — | kilotons | |||||||||||||||||||||||||||||
Naphtha Price Spread | 91 | — | kilotons | |||||||||||||||||||||||||||||
Natural Gas | 0.5 | 5.2 | million million British thermal units | |||||||||||||||||||||||||||||
Schedule Fair Values of Derivative Instruments | ||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments | Balance Sheet Classification | 2014 | 2013 | |||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||||||||||
Commodities | Other current assets | $ | 4 | $ | 13 | |||||||||||||||||||||||||||
Foreign currency | Accounts and notes receivable – Other | 25 | — | |||||||||||||||||||||||||||||
Total derivatives designated as hedges | $ | 29 | $ | 13 | ||||||||||||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||||||||||
Commodities | Other current assets | $ | 2 | $ | 1 | |||||||||||||||||||||||||||
Foreign currency | Accounts and notes receivable – Other | 91 | 65 | |||||||||||||||||||||||||||||
Total derivatives not designated as hedges | $ | 93 | $ | 66 | ||||||||||||||||||||||||||||
Total asset derivatives | $ | 122 | $ | 79 | ||||||||||||||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||||||||||
Interest rates | Accounts payable – Other | $ | 12 | $ | 5 | |||||||||||||||||||||||||||
Commodities | Accounts payable – Other | 106 | 5 | |||||||||||||||||||||||||||||
Foreign currency | Accounts payable – Other | — | 9 | |||||||||||||||||||||||||||||
Total derivatives designated as hedges | $ | 118 | $ | 19 | ||||||||||||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||||||||||
Commodities | Accounts payable – Other | $ | 2 | $ | 1 | |||||||||||||||||||||||||||
Foreign currency | Accounts payable – Other | 161 | 24 | |||||||||||||||||||||||||||||
Total derivatives not designated as hedges | $ | 163 | $ | 25 | ||||||||||||||||||||||||||||
Total liability derivatives | $ | 281 | $ | 44 | ||||||||||||||||||||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
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 December 31, 2014 | 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) | $ | — | $ | 2,705 | $ | — | $ | — | $ | 2,705 | ||||||||||
Interests in trade accounts receivable conduits (3) | — | — | 1,328 | — | 1,328 | |||||||||||||||
Equity securities (4) | 692 | 36 | — | — | 728 | |||||||||||||||
Debt securities: (4) | ||||||||||||||||||||
Government debt (5) | — | 584 | — | — | 584 | |||||||||||||||
Corporate bonds | — | 697 | — | — | 697 | |||||||||||||||
Derivatives relating to: (6) | ||||||||||||||||||||
Commodities | — | 6 | — | (3 | ) | 3 | ||||||||||||||
Foreign currency | — | 116 | — | (90 | ) | 26 | ||||||||||||||
Total assets at fair value | $ | 692 | $ | 4,144 | $ | 1,328 | $ | (93 | ) | $ | 6,071 | |||||||||
Liabilities at fair value: | ||||||||||||||||||||
Long-term debt (7) | $ | — | $ | 21,450 | $ | — | $ | — | $ | 21,450 | ||||||||||
Derivatives relating to: (6) | ||||||||||||||||||||
Interest rates | — | 12 | — | — | 12 | |||||||||||||||
Commodities | 9 | 99 | — | (27 | ) | 81 | ||||||||||||||
Foreign currency | — | 161 | — | (90 | ) | 71 | ||||||||||||||
Total liabilities at fair value | $ | 9 | $ | 21,722 | $ | — | $ | (117 | ) | $ | 21,614 | |||||||||
-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 | Treasury Bills and money market funds 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 15 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 10 for the classification of derivatives in the consolidated balance sheets. | |||||||||||||||||||
-7 | See Note 10 for information on fair value measurements of long-term debt. | |||||||||||||||||||
Basis of Fair Value Measurements | Quoted Prices | Significant | Significant | Counterparty | Total | |||||||||||||||
on a Recurring Basis | in Active | Other | Unobservable | and Cash | ||||||||||||||||
at December 31, 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) | $ | — | $ | 2,912 | $ | — | $ | — | $ | 2,912 | ||||||||||
Interests in trade accounts receivable conduits (3) | — | — | 1,227 | — | 1,227 | |||||||||||||||
Equity securities (4) | 760 | 37 | — | — | 797 | |||||||||||||||
Debt securities: (4) | ||||||||||||||||||||
Government debt (5) | — | 564 | — | — | 564 | |||||||||||||||
Corporate bonds | — | 695 | — | — | 695 | |||||||||||||||
Derivatives relating to: (6) | ||||||||||||||||||||
Commodities | 3 | 11 | — | (3 | ) | 11 | ||||||||||||||
Foreign currency | — | 65 | — | (20 | ) | 45 | ||||||||||||||
Total assets at fair value | $ | 763 | $ | 4,284 | $ | 1,227 | $ | (23 | ) | $ | 6,251 | |||||||||
Liabilities at fair value: | ||||||||||||||||||||
Long-term debt (7) | $ | — | $ | 19,467 | $ | — | $ | — | $ | 19,467 | ||||||||||
Derivatives relating to: (6) | ||||||||||||||||||||
Interest Rates | — | 5 | — | — | 5 | |||||||||||||||
Commodities | 4 | 2 | — | (4 | ) | 2 | ||||||||||||||
Foreign currency | — | 33 | — | (20 | ) | 13 | ||||||||||||||
Total liabilities at fair value | $ | 4 | $ | 19,507 | $ | — | $ | (24 | ) | $ | 19,487 | |||||||||
-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 | Treasury Bills and money market funds 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 15 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 10 for the classification of derivatives in the consolidated balance sheets. | |||||||||||||||||||
-7 | See Note 10 for information on fair value measurements of long-term debt | |||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ||||||||||||||||||||
Fair Value Measurements Using Level 3 Inputs for Interests Held in Trade Receivable Conduits (1) | 2014 | 2013 | ||||||||||||||||||
In millions | ||||||||||||||||||||
Balance at January 1 | $ | 1,227 | $ | 1,057 | ||||||||||||||||
Gain included in earnings (2) | 9 | — | ||||||||||||||||||
Purchases | 1,171 | 1,198 | ||||||||||||||||||
Settlements | (1,079 | ) | (1,028 | ) | ||||||||||||||||
Balance at December 31 | $ | 1,328 | $ | 1,227 | ||||||||||||||||
-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 | |||||||||||||||||||
Unobservable | ||||||||||||||||||||
Inputs | ||||||||||||||||||||
In millions | (Level 3) | Losses | ||||||||||||||||||
2014 | ||||||||||||||||||||
Assets at fair value: | ||||||||||||||||||||
Long-lived assets and other assets | $ | 4 | $ | (73 | ) | |||||||||||||||
2013 | ||||||||||||||||||||
Assets at fair value: | ||||||||||||||||||||
Long-lived assets, other assets and equity method investments | $ | 127 | $ | (178 | ) | |||||||||||||||
2012 | ||||||||||||||||||||
Assets at fair value: | ||||||||||||||||||||
Long-lived assets, other assets and equity method investments | $ | 45 | $ | (693 | ) | |||||||||||||||
Goodwill | $ | — | $ | (220 | ) | |||||||||||||||
SUPPLEMENTARY_INFORMATION_Tabl
SUPPLEMENTARY INFORMATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Supplementary Information [Abstract] | |||||||||||||
Sundry Income, Net [Table Text Block] | |||||||||||||
Sundry Income (Expense) – Net | |||||||||||||
In millions | 2014 | 2013 | 2012 | ||||||||||
Gain on sales of other assets and investments (1) | $ | 40 | $ | 98 | $ | 81 | |||||||
Foreign exchange loss | (61 | ) | (31 | ) | (51 | ) | |||||||
Gain on termination of ethylene off-take agreement | 53 | — | — | ||||||||||
Chlorine value chain separation costs | (49 | ) | — | — | |||||||||
K-Dow settlement (2) | — | 2,161 | — | ||||||||||
Gain on sale of Polypropylene Licensing and Catalysts business (3) | 5 | 451 | — | ||||||||||
Loss on early extinguishment of debt | — | (329 | ) | (123 | ) | ||||||||
Gain on sale of a 7.5 percent ownership interest in Freeport LNG Development, L.P. | — | 87 | — | ||||||||||
Gain on sale of ownership interest in Dow Kokam LLC (3) | — | 26 | — | ||||||||||
Reclassification of cumulative translation adjustments | (12 | ) | 21 | — | |||||||||
Gain on sale of a contract manufacturing business | — | — | 8 | ||||||||||
Other - net | (3 | ) | 70 | 58 | |||||||||
Total sundry income (expense) – net | $ | (27 | ) | $ | 2,554 | $ | (27 | ) | |||||
-1 | The 2013 gain on sales of other assets and investments also included a $21 million gain reported as "Reclassification of cumulative translation adjustments." | ||||||||||||
-2 | See Note 14 for additional information. | ||||||||||||
-3 | See Note 5 for additional information. | ||||||||||||
Other Income Statement Information [Table Text Block] | |||||||||||||
Other Income Statement Information | |||||||||||||
In millions | 2014 | 2013 | 2012 | ||||||||||
Provision for doubtful receivables (1) | $ | 52 | $ | 59 | $ | 13 | |||||||
-1 | Included in “Selling, general and administrative expenses” in the consolidated statements of income. | ||||||||||||
Supplemental Disclosure of Cash Flow Information [Table Text Block] | |||||||||||||
Supplemental Disclosure of Cash Flow Information | |||||||||||||
In millions | 2014 | 2013 | 2012 | ||||||||||
Cash payments for interest | $ | 1,038 | $ | 1,191 | $ | 1,345 | |||||||
Cash payments for income taxes | $ | 1,109 | $ | 1,708 | $ | 1,107 | |||||||
EARNINGS_PER_SHARE_CALCULATION1
EARNINGS PER SHARE CALCULATIONS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | |||||||||||||
Net Income for Earnings Per Share Calculations - Basic | 2014 | 2013 | 2012 | ||||||||||
In millions | |||||||||||||
Net income attributable to The Dow Chemical Company | $ | 3,772 | $ | 4,787 | $ | 1,182 | |||||||
Preferred stock dividends | (340 | ) | (340 | ) | (340 | ) | |||||||
Net income attributable to participating securities (1) | (27 | ) | (38 | ) | (13 | ) | |||||||
Net income attributable to common stockholders | $ | 3,405 | $ | 4,409 | $ | 829 | |||||||
Earnings Per Share Calculations - Basic | 2014 | 2013 | 2012 | ||||||||||
Dollars per share | |||||||||||||
Net income attributable to The Dow Chemical Company | $ | 3.22 | $ | 4.04 | $ | 1.01 | |||||||
Preferred stock dividends | (0.29 | ) | (0.29 | ) | (0.29 | ) | |||||||
Net income attributable to participating securities (1) | (0.02 | ) | (0.03 | ) | (0.01 | ) | |||||||
Net income attributable to common stockholders | $ | 2.91 | $ | 3.72 | $ | 0.71 | |||||||
Net Income for Earnings Per Share Calculations - Diluted | 2014 | 2013 | 2012 | ||||||||||
In millions | |||||||||||||
Net income attributable to The Dow Chemical Company | $ | 3,772 | $ | 4,787 | $ | 1,182 | |||||||
Preferred stock dividends (2) | (340 | ) | — | (340 | ) | ||||||||
Net income attributable to participating securities (1) | (27 | ) | (38 | ) | (13 | ) | |||||||
Net income attributable to common stockholders | $ | 3,405 | $ | 4,749 | $ | 829 | |||||||
Earnings Per Share Calculations - Diluted | 2014 | 2013 | 2012 | ||||||||||
Dollars per share | |||||||||||||
Net income attributable to The Dow Chemical Company | $ | 3.18 | $ | 3.71 | $ | 1 | |||||||
Preferred stock dividends (2) | (0.29 | ) | — | (0.29 | ) | ||||||||
Net income attributable to participating securities (1) | (0.02 | ) | (0.03 | ) | (0.01 | ) | |||||||
Net income attributable to common stockholders | $ | 2.87 | $ | 3.68 | $ | 0.7 | |||||||
Share Count Information | 2014 | 2013 | 2012 | ||||||||||
Shares in millions | |||||||||||||
Weighted-average common shares - basic | 1,170.90 | 1,186.20 | 1,169.70 | ||||||||||
Plus dilutive effect of stock options and awards | 16.1 | 7.4 | 6.7 | ||||||||||
Plus dilutive effect of assumed conversion of preferred stock (3) | — | 96.8 | — | ||||||||||
Weighted-average common shares - diluted | 1,187.00 | 1,290.40 | 1,176.40 | ||||||||||
Stock options and deferred stock awards excluded from EPS calculations (4) | 5.8 | 47.4 | 52.6 | ||||||||||
-1 | 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 periods ended December 31, 2014 and December 31, 2012 because the effect of adding them back would have been antidilutive. | ||||||||||||
-3 | Conversion of the Company's 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 periods ended December 31, 2014 and December 31, 2012 because the effect of including them would have been antidilutive. | ||||||||||||
-4 | 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. |
COMMITMENTS_AND_CONTINGENT_LIA1
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||
Environmental Loss Contingency Disclosure [Text Block] | ||||||||||||||||||||
Accrued Obligations for Environmental Matters | ||||||||||||||||||||
In millions | 2014 | 2013 | ||||||||||||||||||
Balance at January 1 | $ | 722 | $ | 754 | ||||||||||||||||
Additional accruals | 228 | 200 | ||||||||||||||||||
Charges against reserve | (219 | ) | (222 | ) | ||||||||||||||||
Foreign currency impact | (25 | ) | (10 | ) | ||||||||||||||||
Balance at December 31 | $ | 706 | $ | 722 | ||||||||||||||||
Receivables for Asbestos-Related Costs | ||||||||||||||||||||
Receivables for Asbestos-Related Costs at December 31 | 2014 | 2013 | ||||||||||||||||||
In millions | ||||||||||||||||||||
Receivables for defense and resolution costs – carriers with settlement agreements | $ | 69 | $ | 66 | ||||||||||||||||
Receivables for insurance recoveries – carriers without settlement agreements | 10 | 25 | ||||||||||||||||||
Total | $ | 79 | $ | 91 | ||||||||||||||||
Unrecorded Unconditional Purchase Obligations Disclosure [Table Text Block] | ||||||||||||||||||||
Fixed and Determinable Portion of Take-or-Pay and | ||||||||||||||||||||
Throughput Obligations at December 31, 2014 | ||||||||||||||||||||
In millions | ||||||||||||||||||||
2015 | $ | 2,930 | ||||||||||||||||||
2016 | 2,688 | |||||||||||||||||||
2017 | 2,222 | |||||||||||||||||||
2018 | 1,981 | |||||||||||||||||||
2019 | 1,385 | |||||||||||||||||||
2020 and beyond | 7,305 | |||||||||||||||||||
Total | $ | 18,511 | ||||||||||||||||||
Schedule of Guarantor Obligations [Table Text Block] | ||||||||||||||||||||
Guarantees at December 31, 2014 | Final | Maximum Future | Recorded | Guarantees at December 31, 2013 | Final | Maximum Future | Recorded | |||||||||||||
In millions | Expiration | Payments | Liability | In millions | Expiration | Payments | Liability | |||||||||||||
Guarantees | 2021 | $ | 5,042 | $ | 160 | Guarantees | 2021 | $ | 5,074 | $ | 137 | |||||||||
Residual value guarantees | 2024 | 951 | 123 | Residual value guarantees | 2021 | 708 | 27 | |||||||||||||
Total guarantees | $ | 5,993 | $ | 283 | Total guarantees | $ | 5,782 | $ | 164 | |||||||||||
Schedule of Product Warranty Liability [Table Text Block] | ||||||||||||||||||||
Warranty Accrual | ||||||||||||||||||||
In millions | 2014 | 2013 | ||||||||||||||||||
Balance at January 1 | $ | 24 | $ | 44 | ||||||||||||||||
Accruals related to existing warranties (1) | 104 | 2 | ||||||||||||||||||
Settlements made during the year | (21 | ) | (22 | ) | ||||||||||||||||
Balance at December 31 | $ | 107 | $ | 24 | ||||||||||||||||
-1 | In the fourth quarter of 2014, the Company recorded a pretax charge of $100 million for a warranty accrual adjustment related to an exited business. The charge was included in "Cost of sales" in the consolidated statements of income and reflected in Infrastructure Solutions. | |||||||||||||||||||
Schedule of Change in Asset Retirement Obligation [Table Text Block] | ||||||||||||||||||||
Asset Retirement Obligations | ||||||||||||||||||||
In millions | 2014 | 2013 | ||||||||||||||||||
Balance at January 1 | $ | 89 | $ | 92 | ||||||||||||||||
Additional accruals | 3 | 5 | ||||||||||||||||||
Liabilities settled | (8 | ) | (2 | ) | ||||||||||||||||
Accretion expense | 1 | 1 | ||||||||||||||||||
Revisions in estimated cash flows | 3 | (8 | ) | |||||||||||||||||
Other | (4 | ) | 1 | |||||||||||||||||
Balance at December 31 | $ | 84 | $ | 89 | ||||||||||||||||
TRANSFERS_OF_FINANCIAL_ASSETS_
TRANSFERS OF FINANCIAL ASSETS (Tables) (North America and Europe [Member]) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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 at December 31 | ||||||||||||
In millions | 2014 | 2013 | ||||||||||
Carrying value of interests held | $ | 1,328 | $ | 1,227 | ||||||||
Percentage of anticipated credit losses | 0.35 | % | 0.71 | % | ||||||||
Impact to carrying value - 10% adverse change | $ | 1 | $ | 1 | ||||||||
Impact to carrying value - 20% adverse change | $ | 2 | $ | 2 | ||||||||
Schedule of Certain Cash Flows Between the Company and the Conduits | ||||||||||||
Cash Proceeds | ||||||||||||
In millions | 2014 | 2013 | 2012 | |||||||||
Sale of receivables | $ | 98 | $ | 34 | $ | 57 | ||||||
Collections reinvested in revolving receivables | $ | 26,479 | $ | 25,864 | $ | 25,828 | ||||||
Interests in conduits (1) | $ | 1,079 | $ | 1,028 | $ | 2,650 | ||||||
(1) Presented in "Operating Activities" in the consolidated statements of cash flows. | ||||||||||||
Schedule of Trade Accounts Receivable Sold [Table Text Block] | ||||||||||||
Trade Accounts Receivable Sold at December 31 | ||||||||||||
In millions | 2014 | 2013 | ||||||||||
Delinquencies on sold receivables still outstanding | $ | 133 | $ | 138 | ||||||||
Trade accounts receivable outstanding and derecognized | $ | 2,607 | $ | 2,494 | ||||||||
NOTES_PAYABLE_LONGTERM_DEBT_AN1
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||
Schedule of Short-term Debt [Table Text Block] | |||||||||||||||
Notes Payable at December 31 | 2014 | 2013 | |||||||||||||
In millions | |||||||||||||||
Notes payable to banks and other lenders | $ | 353 | $ | 300 | |||||||||||
Notes payable to related companies | 189 | 137 | |||||||||||||
Notes payable trade | 9 | 6 | |||||||||||||
Total notes payable | $ | 551 | $ | 443 | |||||||||||
Year-end average interest rates | 4.08 | % | 3.23 | % | |||||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | |||||||||||||||
Long-Term Debt at December 31 | 2014 | 2014 | 2013 | 2013 | |||||||||||
Average | Average | ||||||||||||||
In millions | Rate | Rate | |||||||||||||
Promissory notes and debentures: | |||||||||||||||
Final maturity 2014 | — | $ | — | 5.33 | % | $ | 399 | ||||||||
Final maturity 2015 | 2.74 | % | 60 | 2.89 | % | 56 | |||||||||
Final maturity 2016 | 2.52 | % | 805 | 2.53 | % | 805 | |||||||||
Final maturity 2017 | 5.66 | % | 489 | 5.65 | % | 491 | |||||||||
Final maturity 2018 | 5.44 | % | 567 | 5.43 | % | 570 | |||||||||
Final maturity 2019 | 8.41 | % | 2,168 | 8.4 | % | 2,171 | |||||||||
Final maturity 2020 and thereafter | 5.16 | % | 12,063 | 5.41 | % | 10,029 | |||||||||
Other facilities: | |||||||||||||||
U.S. dollar loans, various rates and maturities | 1.38 | % | 461 | 1.44 | % | 490 | |||||||||
Foreign currency loans, various rates and maturities | 3.01 | % | 1,013 | 3.18 | % | 1,140 | |||||||||
Medium-term notes, varying maturities through 2024 | 3.55 | % | 1,528 | 3.76 | % | 1,143 | |||||||||
Tax-exempt bonds, varying maturities through 2038 | 5.66 | % | 343 | 5.59 | % | 518 | |||||||||
Capital lease obligations | — | 85 | — | 41 | |||||||||||
Unamortized debt discount | — | (350 | ) | — | (336 | ) | |||||||||
Long-term debt due within one year | — | (394 | ) | — | (697 | ) | |||||||||
Long-term debt | — | $ | 18,838 | — | $ | 16,820 | |||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | |||||||||||||||
Annual Installments on Long-Term Debt | |||||||||||||||
for Next Five Years | |||||||||||||||
In millions | |||||||||||||||
2015 | $ | 394 | |||||||||||||
2016 | $ | 1,375 | |||||||||||||
2017 | $ | 778 | |||||||||||||
2018 | $ | 932 | |||||||||||||
2019 | $ | 2,578 | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Schedule of Line of Credit Facilities [Table Text Block] | |||||||||||||||
Committed and Available Credit Facilities at December 31, 2014 | |||||||||||||||
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-15 | 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 | ||||||||||
Bilateral Revolving Credit Facility | Oct-13 | 200 | 200 | Oct-16 | Floating rate | ||||||||||
Bilateral Revolving Credit Facility | Oct-13 | 100 | 100 | Oct-16 | Floating rate | ||||||||||
Bilateral Revolving Credit Facility | Jan-14 | 100 | 100 | Oct-16 | Floating rate | ||||||||||
Total Committed and Available Credit Facilities | $ | 6,470 | $ | 6,170 | |||||||||||
PENSION_PLANS_AND_OTHER_POSTRE1
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | |||||||||||||||||||||||||
Net Periodic Benefit Cost for All Significant Plans | |||||||||||||||||||||||||
Defined Benefit Pension Plans | Other Postretirement Benefits | ||||||||||||||||||||||||
In millions | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 411 | $ | 471 | $ | 378 | $ | 14 | $ | 19 | $ | 17 | |||||||||||||
Interest cost | 1,096 | 1,012 | 1,093 | 72 | 78 | 92 | |||||||||||||||||||
Expected return on plan assets | (1,322 | ) | (1,248 | ) | (1,262 | ) | — | — | (1 | ) | |||||||||||||||
Amortization of prior service cost (credit) | 22 | 25 | 26 | (2 | ) | (4 | ) | (4 | ) | ||||||||||||||||
Amortization of unrecognized (gain) loss | 500 | 788 | 519 | (14 | ) | 4 | 1 | ||||||||||||||||||
Curtailment/settlement/other (1) (2) (3) | (2 | ) | 5 | — | — | — | 9 | ||||||||||||||||||
Net periodic benefit cost | $ | 705 | $ | 1,053 | $ | 754 | $ | 70 | $ | 97 | $ | 114 | |||||||||||||
-1 | Included $9 million of curtailment costs recorded in 2012 related to the 4Q12 Restructuring plan (see Note 3). | ||||||||||||||||||||||||
-2 | The 2013 impact primarily relates to settlements associated with the wind-up of a Canadian pension plan. | ||||||||||||||||||||||||
-3 | The 2014 impact relates to settlements associated with the wind-up of a pension plan in The Netherlands and a pension plan in Canada. | ||||||||||||||||||||||||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | |||||||||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss | |||||||||||||||||||||||||
for All Significant Plans | |||||||||||||||||||||||||
Defined Benefit Pension Plans | Other Postretirement Benefits | ||||||||||||||||||||||||
In millions | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Net (gain) loss | $ | 3,528 | $ | (2,343 | ) | $ | 3,135 | $ | 63 | $ | (404 | ) | $ | 163 | |||||||||||
Prior service credit arising during period | (500 | ) | — | — | — | — | — | ||||||||||||||||||
Amortization of prior service (cost) credit | (22 | ) | (25 | ) | (26 | ) | 2 | 4 | 4 | ||||||||||||||||
Amortization of unrecognized gain (loss) | (498 | ) | (793 | ) | (519 | ) | 14 | (4 | ) | (1 | ) | ||||||||||||||
Total recognized in other comprehensive (income) loss | $ | 2,508 | $ | (3,161 | ) | $ | 2,590 | $ | 79 | $ | (404 | ) | $ | 166 | |||||||||||
Total recognized in net periodic benefit cost and other comprehensive (income) loss | $ | 3,213 | $ | (2,108 | ) | $ | 3,344 | $ | 149 | $ | (307 | ) | $ | 280 | |||||||||||
Schedule of Change in Projected Benefit Obligations, Plan Assets and Funded Status of All Significant Plans [Table Text Block] | |||||||||||||||||||||||||
Change in Projected Benefit Obligations, Plan Assets and Funded Status of All Significant Plans | |||||||||||||||||||||||||
In millions | Defined | Other Postretirement Benefits | |||||||||||||||||||||||
Benefit Pension Plans | |||||||||||||||||||||||||
Change in projected benefit obligations: | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Benefit obligations at beginning of year | $ | 25,027 | $ | 26,840 | $ | 1,742 | $ | 2,210 | |||||||||||||||||
Service cost | 411 | 471 | 14 | 19 | |||||||||||||||||||||
Interest cost | 1,096 | 1,012 | 72 | 78 | |||||||||||||||||||||
Plan participants’ contributions | 21 | 17 | — | — | |||||||||||||||||||||
Plan amendments (1) | (500 | ) | — | — | — | ||||||||||||||||||||
Actuarial changes in assumptions and experience | 4,096 | (2,029 | ) | 63 | (401 | ) | |||||||||||||||||||
Acquisition/divestiture/other activity | (1 | ) | — | — | — | ||||||||||||||||||||
Benefits paid | (1,316 | ) | (1,322 | ) | (169 | ) | (156 | ) | |||||||||||||||||
Currency impact | (779 | ) | 123 | (15 | ) | (8 | ) | ||||||||||||||||||
Termination benefits/curtailment cost/settlements (2) (3) | (76 | ) | (85 | ) | — | — | |||||||||||||||||||
Benefit obligations at end of year | $ | 27,979 | $ | 25,027 | $ | 1,707 | $ | 1,742 | |||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 18,827 | $ | 17,725 | $ | — | $ | 65 | |||||||||||||||||
Actual return on plan assets | 1,961 | 1,548 | — | — | |||||||||||||||||||||
Currency impact | (593 | ) | 85 | — | — | ||||||||||||||||||||
Employer contributions | 815 | 865 | — | — | |||||||||||||||||||||
Plan participants’ contributions | 21 | 17 | — | — | |||||||||||||||||||||
Acquisition/divestiture/other activity | (86 | ) | (91 | ) | — | — | |||||||||||||||||||
Benefits paid | (1,316 | ) | (1,322 | ) | — | (65 | ) | ||||||||||||||||||
Fair value of plan assets at end of year | $ | 19,629 | $ | 18,827 | $ | — | $ | — | |||||||||||||||||
Funded status at end of year | $ | (8,350 | ) | $ | (6,200 | ) | $ | (1,707 | ) | $ | (1,742 | ) | |||||||||||||
Net amounts recognized in the consolidated balance sheets at December 31: | |||||||||||||||||||||||||
Noncurrent assets | $ | 263 | $ | 139 | $ | — | $ | — | |||||||||||||||||
Current liabilities | (68 | ) | (66 | ) | (147 | ) | (157 | ) | |||||||||||||||||
Noncurrent liabilities | (8,545 | ) | (6,273 | ) | (1,560 | ) | (1,585 | ) | |||||||||||||||||
Net amounts recognized in the consolidated balance sheets | $ | (8,350 | ) | $ | (6,200 | ) | $ | (1,707 | ) | $ | (1,742 | ) | |||||||||||||
Pretax amounts recognized in AOCL at December 31: | |||||||||||||||||||||||||
Net loss (gain) | $ | 10,345 | $ | 7,815 | $ | (176 | ) | $ | (253 | ) | |||||||||||||||
Prior service cost (credit) | 81 | 103 | (5 | ) | (7 | ) | |||||||||||||||||||
Pretax balance in AOCL at end of year | $ | 10,426 | $ | 7,918 | $ | (181 | ) | $ | (260 | ) | |||||||||||||||
-1 | The 2014 plan amendments include a change in post-termination interest rates in the U.S. and new legislation in The Netherlands. | ||||||||||||||||||||||||
-2 | The 2013 impact primarily relates to settlements associated with the wind-up of a Canadian pension plan. | ||||||||||||||||||||||||
-3 | The 2014 impact relates to settlements associated with the wind-up of a pension plan in The Netherlands and a pension plan in Canada. | ||||||||||||||||||||||||
Schedule of Expected Benefit Payments [Table Text Block] | |||||||||||||||||||||||||
Estimated Future Benefit Payments at December 31, 2014 | |||||||||||||||||||||||||
In millions | Defined Benefit Pension Plans | Other Postretirement Benefits | |||||||||||||||||||||||
2015 | $ | 1,270 | $ | 150 | |||||||||||||||||||||
2016 | 1,284 | 140 | |||||||||||||||||||||||
2017 | 1,314 | 134 | |||||||||||||||||||||||
2018 | 1,359 | 133 | |||||||||||||||||||||||
2019 | 1,401 | 129 | |||||||||||||||||||||||
2020 through 2024 | 7,554 | 589 | |||||||||||||||||||||||
Total | $ | 14,182 | $ | 1,275 | |||||||||||||||||||||
Schedule of Allocation of Plan Assets [Table Text Block] | |||||||||||||||||||||||||
Strategic Weighted-Average Target Allocation of Plan | |||||||||||||||||||||||||
Assets for All Significant Plans | |||||||||||||||||||||||||
Asset Category | Target Allocation | ||||||||||||||||||||||||
Equity securities | 34 | % | |||||||||||||||||||||||
Fixed income securities | 35 | % | |||||||||||||||||||||||
Alternative investments | 30 | % | |||||||||||||||||||||||
Other investments | 1 | % | |||||||||||||||||||||||
Total | 100 | % | |||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | |||||||||||||||||||||||||
Basis of Fair Value Measurements of | Quoted Prices | Significant | Significant | ||||||||||||||||||||||
Pension Plan Assets at December 31, 2014 | in Active | Other | Unobservable | ||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||
Identical Items | Inputs | ||||||||||||||||||||||||
In millions | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | 61 | $ | 953 | $ | — | $ | 1,014 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. equity (1) | $ | 3,011 | $ | 428 | $ | 9 | $ | 3,448 | |||||||||||||||||
Non-U.S. equity – developed countries | 1,814 | 1,410 | — | 3,224 | |||||||||||||||||||||
Emerging markets | 472 | 538 | 23 | 1,033 | |||||||||||||||||||||
Convertible bonds | 15 | 195 | — | 210 | |||||||||||||||||||||
Equity derivatives | — | 7 | — | 7 | |||||||||||||||||||||
Total equity securities | $ | 5,312 | $ | 2,578 | $ | 32 | $ | 7,922 | |||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||
U.S. government and municipalities | $ | — | $ | 1,406 | $ | — | $ | 1,406 | |||||||||||||||||
U.S. agency and agency mortgage-backed securities | — | 310 | — | 310 | |||||||||||||||||||||
Corporate bonds – investment grade | — | 1,605 | — | 1,605 | |||||||||||||||||||||
Non-U.S. governments – developed countries | — | 1,212 | — | 1,212 | |||||||||||||||||||||
Non-U.S. corporate bonds – developed countries | — | 961 | — | 961 | |||||||||||||||||||||
Emerging market debt | — | 93 | — | 93 | |||||||||||||||||||||
Other asset-backed securities | — | 105 | 1 | 106 | |||||||||||||||||||||
High yield bonds | — | 168 | 16 | 184 | |||||||||||||||||||||
Other fixed income funds | — | 299 | 294 | 593 | |||||||||||||||||||||
Fixed income derivatives | — | 31 | — | 31 | |||||||||||||||||||||
Total fixed income securities | $ | — | $ | 6,190 | $ | 311 | $ | 6,501 | |||||||||||||||||
Alternative investments: | |||||||||||||||||||||||||
Real estate | $ | 31 | $ | 36 | $ | 1,627 | $ | 1,694 | |||||||||||||||||
Private equity | — | — | 1,059 | 1,059 | |||||||||||||||||||||
Absolute return | — | 586 | 656 | 1,242 | |||||||||||||||||||||
Total alternative investments | $ | 31 | $ | 622 | $ | 3,342 | $ | 3,995 | |||||||||||||||||
Other investments | $ | — | $ | 157 | $ | 40 | $ | 197 | |||||||||||||||||
Total pension plan assets at fair value | $ | 5,404 | $ | 10,500 | $ | 3,725 | $ | 19,629 | |||||||||||||||||
(1) Includes no Company common stock. | |||||||||||||||||||||||||
Basis of Fair Value Measurements of | Quoted Prices | Significant | Significant | ||||||||||||||||||||||
Pension Plan Assets at December 31, 2013 | in Active | Other | Unobservable | ||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||
Identical Items | Inputs | ||||||||||||||||||||||||
In millions | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | 83 | $ | 1,179 | $ | — | $ | 1,262 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. equity (1) | $ | 2,759 | $ | 695 | $ | — | $ | 3,454 | |||||||||||||||||
Non-U.S. equity – developed countries | 2,014 | 1,122 | 2 | 3,138 | |||||||||||||||||||||
Emerging markets | 648 | 574 | 10 | 1,232 | |||||||||||||||||||||
Convertible bonds | 23 | 326 | — | 349 | |||||||||||||||||||||
Equity derivatives | 5 | (27 | ) | — | (22 | ) | |||||||||||||||||||
Total equity securities | $ | 5,449 | $ | 2,690 | $ | 12 | $ | 8,151 | |||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||
U.S. government and municipalities | $ | — | $ | 1,154 | $ | — | $ | 1,154 | |||||||||||||||||
U.S. agency and agency mortgage-backed securities | — | 313 | — | 313 | |||||||||||||||||||||
Corporate bonds – investment grade | — | 1,397 | — | 1,397 | |||||||||||||||||||||
Non-U.S. governments – developed countries | — | 1,075 | — | 1,075 | |||||||||||||||||||||
Non-U.S. corporate bonds – developed countries | — | 838 | 2 | 840 | |||||||||||||||||||||
Emerging market debt | — | 106 | — | 106 | |||||||||||||||||||||
Other asset-backed securities | — | 113 | 15 | 128 | |||||||||||||||||||||
High yield bonds | — | 178 | 20 | 198 | |||||||||||||||||||||
Other fixed income funds | — | 243 | 200 | 443 | |||||||||||||||||||||
Fixed income derivatives | (1 | ) | (31 | ) | — | (32 | ) | ||||||||||||||||||
Total fixed income securities | $ | (1 | ) | $ | 5,386 | $ | 237 | $ | 5,622 | ||||||||||||||||
Alternative investments: | |||||||||||||||||||||||||
Real estate | $ | 30 | $ | 33 | $ | 1,338 | $ | 1,401 | |||||||||||||||||
Private equity | — | — | 1,017 | 1,017 | |||||||||||||||||||||
Absolute return | — | 611 | 406 | 1,017 | |||||||||||||||||||||
Total alternative investments | $ | 30 | $ | 644 | $ | 2,761 | $ | 3,435 | |||||||||||||||||
Other investments | $ | — | $ | 317 | $ | 40 | $ | 357 | |||||||||||||||||
Total pension plan assets at fair value | $ | 5,561 | $ | 10,216 | $ | 3,050 | $ | 18,827 | |||||||||||||||||
(1) Includes no Company common stock. | |||||||||||||||||||||||||
Defined Benefit Pension Plans [Member] | |||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||
Schedule of Assumptions Used [Table Text Block] | |||||||||||||||||||||||||
Weighted-Average Assumptions | Benefit Obligations | Net Periodic Costs | |||||||||||||||||||||||
for All Pension Plans | at December 31 | for the Year | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Discount rate | 3.6 | % | 4.54 | % | 3.88 | % | 4.54 | % | 3.88 | % | 4.93 | % | |||||||||||||
Rate of increase in future compensation levels | 4.13 | % | 4.15 | % | 3.96 | % | 4.15 | % | 3.96 | % | 4.14 | % | |||||||||||||
Expected long-term rate of return on plan assets | — | — | — | 7.4 | % | 7.47 | % | 7.6 | % | ||||||||||||||||
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] | |||||||||||||||||||||||||
Pension Plans with Accumulated Benefit Obligations in Excess | |||||||||||||||||||||||||
of Plan Assets at December 31 | |||||||||||||||||||||||||
In millions | 2014 | 2013 | |||||||||||||||||||||||
Projected benefit obligations | $ | 25,539 | $ | 22,565 | |||||||||||||||||||||
Accumulated benefit obligations | $ | 24,281 | $ | 21,554 | |||||||||||||||||||||
Fair value of plan assets | $ | 16,932 | $ | 16,247 | |||||||||||||||||||||
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets [Table Text Block] | |||||||||||||||||||||||||
Fair Value Measurement of Level 3 | Equity Securities | Fixed Income Securities | Alternative Investments | Other Investments | Total | ||||||||||||||||||||
Pension Plan Assets | |||||||||||||||||||||||||
In millions | |||||||||||||||||||||||||
Balance at January 1, 2013 | $ | 13 | $ | 258 | $ | 2,515 | $ | 42 | $ | 2,828 | |||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||
Relating to assets sold during 2013 | — | 42 | 176 | — | 218 | ||||||||||||||||||||
Relating to assets held at Dec 31, 2013 | — | (32 | ) | 67 | (1 | ) | 34 | ||||||||||||||||||
Purchases, sales and settlements | 2 | (27 | ) | (5 | ) | (1 | ) | (31 | ) | ||||||||||||||||
Transfers out of Level 3, net | (3 | ) | (2 | ) | — | — | (5 | ) | |||||||||||||||||
Foreign currency impact | — | (2 | ) | 8 | — | 6 | |||||||||||||||||||
Balance at December 31, 2013 | $ | 12 | $ | 237 | $ | 2,761 | $ | 40 | $ | 3,050 | |||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||
Relating to assets sold during 2014 | — | 22 | 139 | — | 161 | ||||||||||||||||||||
Relating to assets held at Dec 31, 2014 | (12 | ) | (7 | ) | 191 | 1 | 173 | ||||||||||||||||||
Purchases, sales and settlements | 32 | 63 | 300 | (1 | ) | 394 | |||||||||||||||||||
Transfers out of Level 3, net | — | (3 | ) | — | — | (3 | ) | ||||||||||||||||||
Foreign currency impact | — | (1 | ) | (49 | ) | — | (50 | ) | |||||||||||||||||
Balance at December 31, 2014 | $ | 32 | $ | 311 | $ | 3,342 | $ | 40 | $ | 3,725 | |||||||||||||||
Defined Benefit Pension Plans, U.S. | |||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||
Schedule of Assumptions Used [Table Text Block] | |||||||||||||||||||||||||
Weighted-Average Assumptions | Benefit Obligations | Net Periodic Costs | |||||||||||||||||||||||
for U.S. Pension Plans | at December 31 | for the Year | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Discount rate | 4.04 | % | 4.92 | % | 4.02 | % | 4.92 | % | 4.02 | % | 4.98 | % | |||||||||||||
Rate of increase in future compensation levels | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | |||||||||||||
Expected long-term rate of return on plan assets | — | — | — | 7.82 | % | 7.85 | % | 7.83 | % | ||||||||||||||||
United States Postretirement Benefit Plan of US Entity [Member] | |||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||
Schedule of Assumptions Used [Table Text Block] | |||||||||||||||||||||||||
U.S. Plan Assumptions for Other | Benefit Obligations | Net Periodic Costs | |||||||||||||||||||||||
Postretirement Benefits | at December 31 | for the Year | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Discount rate | 3.68 | % | 4.37 | % | 3.67 | % | 4.37 | % | 3.67 | % | 4.66 | % | |||||||||||||
Expected long-term rate of return on plan assets | — | % | — | % | — | % | — | % | — | % | 1 | % | |||||||||||||
Initial health care cost trend rate | 7.06 | % | 7.45 | % | 7.84 | % | 7.45 | % | 7.84 | % | 8.28 | % | |||||||||||||
Ultimate health care cost trend rate | 5 | % | 5 | % | 5 | % | 5 | % | 5 | % | 5 | % | |||||||||||||
Year ultimate trend rate to be reached | 2020 | 2020 | 2019 | 2020 | 2020 | 2019 | |||||||||||||||||||
LEASED_PROPERTY_Tables
LEASED PROPERTY (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Leases [Abstract] | ||||
Leases of Lessee Disclosure [Table Text Block] | ||||
Minimum Lease Commitments at December 31, 2014 | ||||
In millions | ||||
2015 | $ | 294 | ||
2016 | 275 | |||
2017 | 241 | |||
2018 | 199 | |||
2019 | 188 | |||
2020 and thereafter | 1,837 | |||
Total | $ | 3,034 | ||
VARIABLE_INTEREST_ENTITIES_Tab
VARIABLE INTEREST ENTITIES (Tables) (Variable Interest Entity, Primary Beneficiary [Member]) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Variable Interest Entity, Primary Beneficiary [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Schedule of Variable Interest Entities [Table Text Block] | |||||||||
Assets and Liabilities of Consolidated VIEs at December 31 | 2014 | 2013 | |||||||
In millions | |||||||||
Cash and cash equivalents (1) | $ | 190 | $ | 147 | |||||
Other current assets | 175 | 143 | |||||||
Property | 2,726 | 2,646 | |||||||
Other noncurrent assets | 85 | 105 | |||||||
Total assets (2) | $ | 3,176 | $ | 3,041 | |||||
Current liabilities (nonrecourse 2014: $391; 2013: $318) | $ | 394 | $ | 664 | |||||
Long-term debt (nonrecourse 2014: $1,229; 2013: $1,360) | 1,260 | 1,392 | |||||||
Other noncurrent liabilities (nonrecourse 2014: $62; 2013: $69) | 62 | 69 | |||||||
Total liabilities | $ | 1,716 | $ | 2,125 | |||||
-1 | Included $20 million at December 31, 2014 ($1 million at December 31, 2013) specifically restricted for the construction, debt servicing and operational expenses of a manufacturing facility. | ||||||||
-2 | All assets were restricted at December 31, 2014 and December 31, 2013. |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | |||||||||||||
Weighted-Average Assumptions | 2014 | 2013 | 2012 | ||||||||||
Dividend yield | 3.08 | % | 3.89 | % | 3.34 | % | |||||||
Expected volatility | 28.11 | % | 29.93 | % | 38.39 | % | |||||||
Risk-free interest rate | 1.11 | % | 1.08 | % | 0.95 | % | |||||||
Expected life of stock options granted during period (years) | 7.7 | 7.8 | 7.6 | ||||||||||
Life of Employee Stock Purchase Plan (months) | 6 | 5 | 6 | ||||||||||
Employees' Stock Purchase Plan [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity [Table Text Block] | |||||||||||||
Employee Stock Purchase Plan | 2014 | ||||||||||||
Shares in thousands | Shares | Exercise | |||||||||||
Price | |||||||||||||
Outstanding at January 1, 2014 | — | — | |||||||||||
Granted | 3,634 | $ | 38.13 | ||||||||||
Exercised | (3,615 | ) | $ | 38.13 | |||||||||
Forfeited/Expired | (3 | ) | $ | 38.13 | |||||||||
Outstanding and exercisable at December 31, 2014 | 16 | $ | 38.13 | ||||||||||
Schedule of value of employees' stock purchase plan | |||||||||||||
Additional Information about Employee Stock Purchase Plan | 2014 | 2013 | 2012 | ||||||||||
In millions, except per share amounts | |||||||||||||
Weighted-average fair value per share of purchase rights granted | $ | 5.45 | $ | 7.2 | $ | 8.32 | |||||||
Total compensation expense for ESPP | $ | 20 | $ | 60 | $ | 79 | |||||||
Related tax benefit | $ | 7 | $ | 22 | $ | 29 | |||||||
Total amount of cash received from the exercise of purchase rights | $ | 138 | $ | 198 | $ | 166 | |||||||
Total intrinsic value of purchase rights exercised (1) | $ | 42 | $ | 68 | $ | 41 | |||||||
Related tax benefit | $ | 15 | $ | 25 | $ | 15 | |||||||
-1 | Difference between the market price at exercise and the price paid by the employee to exercise the purchase rights. | ||||||||||||
Employee Stock Option [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | |||||||||||||
Stock Options | 2014 | ||||||||||||
Shares in thousands | Shares | Exercise | |||||||||||
Price (1) | |||||||||||||
Outstanding at January 1, 2014 | 76,298 | $ | 35.93 | ||||||||||
Granted | 3,152 | $ | 46.71 | ||||||||||
Exercised | (23,951 | ) | $ | 36.6 | |||||||||
Forfeited/Expired | (1,852 | ) | $ | 41.96 | |||||||||
Outstanding at December 31, 2014 | 53,647 | $ | 36.05 | ||||||||||
Remaining contractual life in years | 5.51 | ||||||||||||
Aggregate intrinsic value in millions | $ | 544 | |||||||||||
Exercisable at December 31, 2014 | 35,330 | $ | 36.57 | ||||||||||
Remaining contractual life in years | 4.28 | ||||||||||||
Aggregate intrinsic value in millions | $ | 348 | |||||||||||
-1 | Weighted-average per share. | ||||||||||||
Schedule of value of stock option plans | |||||||||||||
Additional Information about Stock Options | 2014 | 2013 | 2012 | ||||||||||
In millions, except per share amounts | |||||||||||||
Weighted-average fair value per share of options granted | $ | 11.49 | $ | 6.99 | $ | 9.38 | |||||||
Total compensation expense for stock option plans | $ | 65 | $ | 101 | $ | 106 | |||||||
Related tax benefit | $ | 24 | $ | 37 | $ | 39 | |||||||
Total amount of cash received from the exercise of options | $ | 810 | $ | 188 | $ | 137 | |||||||
Total intrinsic value of options exercised (1) | $ | 300 | $ | 102 | $ | 64 | |||||||
Related tax benefit | $ | 111 | $ | 38 | $ | 24 | |||||||
-1 | Difference between the market price at exercise and the price paid by the employee to exercise the options. | ||||||||||||
Deferred Stock [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Schedule of value of deferred stock [Text Block] | |||||||||||||
Additional Information about Deferred Stock | 2014 | 2013 | 2012 | ||||||||||
In millions, except per share amounts | |||||||||||||
Weighted-average fair value per share of deferred stock granted | $ | 46.88 | $ | 32.13 | $ | 33.81 | |||||||
Total fair value of deferred stock vested and delivered (1) | $ | 156 | $ | 137 | $ | 252 | |||||||
Related tax benefit | $ | 58 | $ | 51 | $ | 93 | |||||||
Total compensation expense for deferred stock awards | $ | 99 | $ | 104 | $ | 129 | |||||||
Related tax benefit | $ | 37 | $ | 39 | $ | 48 | |||||||
-1 | Includes the fair value of shares vested in prior years and delivered in the reporting year. | ||||||||||||
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | |||||||||||||
Deferred Stock | 2014 | ||||||||||||
Shares in thousands | Shares | Grant Date | |||||||||||
Fair Value (1) | |||||||||||||
Nonvested at January 1, 2014 | 10,588 | $ | 34.38 | ||||||||||
Granted | 2,344 | $ | 46.88 | ||||||||||
Vested | (3,311 | ) | $ | 37.32 | |||||||||
Canceled | (269 | ) | $ | 35.34 | |||||||||
Nonvested at December 31, 2014 | 9,352 | $ | 36.45 | ||||||||||
-1 | Weighted-average per share. | ||||||||||||
Performance Deferred Stock Awards [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value [Table Text Block] | |||||||||||||
Performance Deferred Stock Awards | Target | Grant Date | |||||||||||
Shares in thousands | Shares | Fair Value (2) | |||||||||||
Year | Performance Period | Granted (1) | |||||||||||
2014 | January 1, 2014 – December 31, 2016 | 2,425 | $ | 46.72 | |||||||||
2013 | January 1, 2013 – December 31, 2015 | 1,321 | $ | 32.16 | |||||||||
2012 | January 1, 2012 – December 31, 2014 | 1,205 | $ | 34 | |||||||||
-1 | At the end of the performance period, the actual number of shares issued can range from zero to 250 percent of the target shares granted in the 2012 and 2013 grant years, and zero to 200 percent of target shares granted in the 2014 grant year. | ||||||||||||
-2 | Weighted-average per share. | ||||||||||||
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | |||||||||||||
Performance Deferred Stock | 2014 | ||||||||||||
Shares in thousands | Target | Grant Date | |||||||||||
Shares | Fair Value (2) | ||||||||||||
Granted (1) | |||||||||||||
Nonvested at January 1, 2014 | 2,504 | $ | 33.03 | ||||||||||
Granted | 2,425 | $ | 46.72 | ||||||||||
Vested (3) | (1,185 | ) | $ | 34 | |||||||||
Canceled | (24 | ) | $ | 38.6 | |||||||||
Nonvested at December 31, 2014 | 3,720 | $ | 41.61 | ||||||||||
-1 | At the end of the performance period, the actual number of shares issued can range from zero to 250 percent of the target shares granted in the 2012 and 2013 grant years, and zero to 200 percent of target shares granted in the 2014 grant year. | ||||||||||||
-2 | Weighted-average per share. | ||||||||||||
-3 | Vested shares for the 2012 - 2014 performance period that were earned (i.e., performance conditions were satisfied and the target shares granted for the performance period vested) during the applicable fiscal year. Shares earned will be delivered in February 2015 at the applicable pay-out percentage. Certain executive employees may opt to receive a cash payment equal to the value of the stock award on the date of delivery. | ||||||||||||
Schedule of Additional Information About Performance Deferred Stock [Table Text Block] | |||||||||||||
Additional Information about Performance Deferred Stock | |||||||||||||
In millions | 2014 | 2013 | 2012 | ||||||||||
Total fair value of performance deferred stock vested and delivered (1) | $ | 12 | $ | 14 | $ | 68 | |||||||
Related tax benefit | $ | 5 | $ | 5 | $ | 25 | |||||||
Total compensation expense for performance deferred stock awards | $ | 67 | $ | 62 | $ | 21 | |||||||
Related tax benefit | $ | 25 | $ | 23 | $ | 8 | |||||||
Shares of performance deferred stock settled in cash (2) | 0.1 | 0.2 | 1 | ||||||||||
Total cash paid to settle performance deferred stock awards (3) | $ | 6 | $ | 6 | $ | 34 | |||||||
-1 | Includes the fair value of shares vested in prior years and delivered in the reporting year. | ||||||||||||
-2 | Performance deferred stock awards vested in prior years and delivered in the reporting year. | ||||||||||||
-3 | Cash paid to certain employees for performance deferred stock awards vested in prior periods and delivered in the reporting year, equal to the value of the stock award on the date of delivery. |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | |||||||||||||||||||||||||||||||||||||
Domestic and Foreign Components of Income Before Income Taxes | |||||||||||||||||||||||||||||||||||||
In millions | 2014 | 2013 (1) | 2012 (2) | ||||||||||||||||||||||||||||||||||
Domestic | $ | 1,652 | $ | 3,979 | $ | (401 | ) | ||||||||||||||||||||||||||||||
Foreign | 3,613 | 2,825 | 2,066 | ||||||||||||||||||||||||||||||||||
Total | $ | 5,265 | $ | 6,804 | $ | 1,665 | |||||||||||||||||||||||||||||||
-1 | In 2013, the domestic component of "Income Before Income Taxes" included a gain of $2.195 billion related to the K-Dow arbitration and a $451 million gain related to the sale of Dow's Polypropylene Licensing and Catalysts business. | ||||||||||||||||||||||||||||||||||||
-2 | In 2012, the domestic component of "Income Before Income Taxes" was significantly impacted by the Company's 1Q12 and 4Q12 restructuring charges. | ||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | |||||||||||||||||||||||||||||||||||||
Provision for Income Taxes | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
In millions | Current | Deferred | Total | Current | Deferred | Total | Current | Deferred | Total | ||||||||||||||||||||||||||||
Federal (1) | $ | (161 | ) | $ | 442 | $ | 281 | $ | 805 | $ | 278 | $ | 1,083 | $ | 241 | $ | (312 | ) | $ | (71 | ) | ||||||||||||||||
State and local | (4 | ) | 43 | 39 | 42 | (73 | ) | (31 | ) | 9 | (10 | ) | (1 | ) | |||||||||||||||||||||||
Foreign | 1,125 | (19 | ) | 1,106 | 1,028 | (92 | ) | 936 | 780 | (143 | ) | 637 | |||||||||||||||||||||||||
Total | $ | 960 | $ | 466 | $ | 1,426 | $ | 1,875 | $ | 113 | $ | 1,988 | $ | 1,030 | $ | (465 | ) | $ | 565 | ||||||||||||||||||
-1 | Reflects the 2014 impact of accelerated deductions. | ||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | |||||||||||||||||||||||||||||||||||||
Reconciliation to U.S. Statutory Rate | |||||||||||||||||||||||||||||||||||||
In millions | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Taxes at U.S. statutory rate | $ | 1,843 | $ | 2,381 | $ | 583 | |||||||||||||||||||||||||||||||
Equity earnings effect | (307 | ) | (276 | ) | (115 | ) | |||||||||||||||||||||||||||||||
Foreign income taxed at rates other than 35% (1) | (195 | ) | (76 | ) | (76 | ) | |||||||||||||||||||||||||||||||
U.S. tax effect of foreign earnings and dividends | 54 | 102 | 13 | ||||||||||||||||||||||||||||||||||
Goodwill impairment losses | — | — | 77 | ||||||||||||||||||||||||||||||||||
Discrete equity earnings (2) | 26 | — | 48 | ||||||||||||||||||||||||||||||||||
Change in permanent reinvestment assertions | — | — | (236 | ) | |||||||||||||||||||||||||||||||||
Change in valuation allowances | 33 | (197 | ) | 135 | |||||||||||||||||||||||||||||||||
Unrecognized tax benefits | (30 | ) | 243 | 122 | |||||||||||||||||||||||||||||||||
Federal tax accrual adjustments | (3 | ) | 29 | 4 | |||||||||||||||||||||||||||||||||
Gain from K-Dow arbitration (3) | — | (212 | ) | — | |||||||||||||||||||||||||||||||||
Other – net | 5 | (6 | ) | 10 | |||||||||||||||||||||||||||||||||
Total tax provision | $ | 1,426 | $ | 1,988 | $ | 565 | |||||||||||||||||||||||||||||||
Effective tax rate | 27.1 | % | 29.2 | % | 33.9 | % | |||||||||||||||||||||||||||||||
-1 | Includes the tax provision for statutory taxable income in foreign jurisdictions for which there is no corresponding amount in “Income Before Income Taxes.” | ||||||||||||||||||||||||||||||||||||
-2 | Includes nonrecurring charges related to equity in earnings of nonconsolidated affiliates. | ||||||||||||||||||||||||||||||||||||
-3 | In 2013, the K-Dow arbitration award generated a tax rate benefit of $212 million due to the tax treatment of certain components of the award. See Note 14 for further information. | ||||||||||||||||||||||||||||||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | |||||||||||||||||||||||||||||||||||||
Deferred Tax Balances at December 31 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||
In millions | Deferred Tax | Deferred Tax | Deferred Tax | Deferred Tax | |||||||||||||||||||||||||||||||||
Assets (1) | Liabilities | Assets (1) | Liabilities | ||||||||||||||||||||||||||||||||||
Property | $ | 63 | $ | 2,005 | $ | 62 | $ | 2,165 | |||||||||||||||||||||||||||||
Tax loss and credit carryforwards | 1,843 | — | 2,012 | — | |||||||||||||||||||||||||||||||||
Postretirement benefit obligations | 4,526 | 1,220 | 3,619 | 1,150 | |||||||||||||||||||||||||||||||||
Other accruals and reserves (2) | 1,213 | 411 | 1,901 | 392 | |||||||||||||||||||||||||||||||||
Intangibles | 217 | 691 | 113 | 827 | |||||||||||||||||||||||||||||||||
Inventory | 412 | 177 | 217 | 197 | |||||||||||||||||||||||||||||||||
Long-term debt | — | 673 | — | 600 | |||||||||||||||||||||||||||||||||
Investments | 103 | 102 | 137 | 111 | |||||||||||||||||||||||||||||||||
Other – net | 999 | 771 | 1,143 | 794 | |||||||||||||||||||||||||||||||||
Subtotal | $ | 9,376 | $ | 6,050 | $ | 9,204 | $ | 6,236 | |||||||||||||||||||||||||||||
Valuation allowances | (1,106 | ) | — | (1,112 | ) | — | |||||||||||||||||||||||||||||||
Total | $ | 8,270 | $ | 6,050 | $ | 8,092 | $ | 6,236 | |||||||||||||||||||||||||||||
-1 | Included in current deferred tax assets are prepaid tax assets totaling $358 million in 2014 and $205 million in 2013. | ||||||||||||||||||||||||||||||||||||
-2 | The reduction in deferred tax assets in 2014 reflects the impact of accelerated deductions. | ||||||||||||||||||||||||||||||||||||
Schedule of Total Gross Unrecognized Tax Benefits [Table Text Block] | |||||||||||||||||||||||||||||||||||||
Total Gross Unrecognized Tax Benefits | |||||||||||||||||||||||||||||||||||||
In millions | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Balance at January 1 | $ | 266 | $ | 409 | $ | 339 | |||||||||||||||||||||||||||||||
Increases related to positions taken on items from prior years | 42 | 385 | 66 | ||||||||||||||||||||||||||||||||||
Decreases related to positions taken on items from prior years | (57 | ) | (137 | ) | (32 | ) | |||||||||||||||||||||||||||||||
Increases related to positions taken in the current year | 10 | 10 | 53 | ||||||||||||||||||||||||||||||||||
Settlement of uncertain tax positions with tax authorities | (13 | ) | (393 | ) | (9 | ) | |||||||||||||||||||||||||||||||
Decreases due to expiration of statutes of limitations | (8 | ) | (8 | ) | (8 | ) | |||||||||||||||||||||||||||||||
Balance at December 31 | $ | 240 | $ | 266 | $ | 409 | |||||||||||||||||||||||||||||||
Schedule of Tax Years Subject to Examination by Major Tax Jurisdiction | |||||||||||||||||||||||||||||||||||||
Tax Years Subject to Examination by Major Tax | |||||||||||||||||||||||||||||||||||||
Jurisdiction at December 31 | |||||||||||||||||||||||||||||||||||||
Earliest Open Year | |||||||||||||||||||||||||||||||||||||
Jurisdiction | 2014 | 2013 | |||||||||||||||||||||||||||||||||||
Argentina | 2007 | 2007 | |||||||||||||||||||||||||||||||||||
Brazil (1) | 2008 | 2009 | |||||||||||||||||||||||||||||||||||
Canada | 2010 | 2009 | |||||||||||||||||||||||||||||||||||
France | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
Germany | 2006 | 2006 | |||||||||||||||||||||||||||||||||||
Italy | 2009 | 2008 | |||||||||||||||||||||||||||||||||||
The Netherlands | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Spain | 2009 | 2008 | |||||||||||||||||||||||||||||||||||
Switzerland | 2011 | 2009 | |||||||||||||||||||||||||||||||||||
United Kingdom | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
United States: | |||||||||||||||||||||||||||||||||||||
Federal income tax | 2004 | 2004 | |||||||||||||||||||||||||||||||||||
State and local income tax | 2004 | 2004 |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||
Schedule of Accumulated Other Comprehensive Loss [Table Text Block] | ||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||
In millions | 2014 | 2013 | 2012 | |||||||||
Unrealized Gains on Investments at beginning of year | $ | 160 | $ | 147 | $ | 78 | ||||||
Net change in unrealized gains (net of tax of $22, $25, $29) | 41 | 55 | 84 | |||||||||
Reclassification to earnings - Net sales (net of tax of $(32), $(20), $(8)) (1) | (59 | ) | (42 | ) | (13 | ) | ||||||
Reclassification to earnings - Sundry income (expense) - net (net of tax of $(1), $-, $(1)) (1) | (1 | ) | — | (2 | ) | |||||||
Balance at end of period | $ | 141 | $ | 160 | $ | 147 | ||||||
Cumulative Translation Adjustments at beginning of year | 476 | 328 | 72 | |||||||||
Translation adjustments (net of tax of $28, $(6), $97) | (1,239 | ) | 169 | 256 | ||||||||
Reclassification to earnings - Sundry income (expense) - net (2) | 12 | (21 | ) | — | ||||||||
Balance at end of period | $ | (751 | ) | $ | 476 | $ | 328 | |||||
Pension and Other Postretirement Benefit Plans at beginning of year | (5,460 | ) | (7,995 | ) | (6,134 | ) | ||||||
Net gain (loss) arising during period (net of tax of $(1,228), $876, $(1,037)) (3) | (2,516 | ) | 1,984 | (2,222 | ) | |||||||
Prior service credit arising during period (net of tax of $185, $1, $-) (3) | 315 | 5 | — | |||||||||
Amortization of prior service cost included in net periodic pension costs (net of tax of $6, $6, $7) (3) | 14 | 15 | 15 | |||||||||
Amortization of net loss included in net periodic pension costs (net of tax of $158, $266, $174) (3) | 326 | 531 | 346 | |||||||||
Balance at end of period | $ | (7,321 | ) | $ | (5,460 | ) | $ | (7,995 | ) | |||
Accumulated Derivative Gain (Loss) at beginning of year | (3 | ) | 4 | (12 | ) | |||||||
Net hedging results (net of tax of $(25), $5, $(9)) | (91 | ) | 10 | (7 | ) | |||||||
Reclassification to earnings - Cost of sales (net of tax of $2, $(8), $13) (1) (4) | 8 | (17 | ) | 23 | ||||||||
Balance at end of period | $ | (86 | ) | $ | (3 | ) | $ | 4 | ||||
Total accumulated other comprehensive loss | $ | (8,017 | ) | $ | (4,827 | ) | $ | (7,516 | ) | |||
(1) Tax amounts are included in "Provision for income taxes" in the consolidated statements of income. | ||||||||||||
-2 | In 2014, reclassification resulted from the liquidation and divestiture of subsidiaries. In 2013, reclassification resulted from the divestiture of a nonconsolidated affiliate. | |||||||||||
(3) See Note 17 for additional information. | ||||||||||||
-4 | Accumulated Derivative Gain (Loss) for 2012 was presented in accordance with ASU 2013-02. |
NONCONTROLLING_INTERESTS_Nonco1
NONCONTROLLING INTERESTS Noncontrolling Interests (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Noncontrolling Interest [Abstract] | ||||||||||||
Noncontrolling Interests [Table Text Block] | ||||||||||||
Non-redeemable Noncontrolling Interests | 2014 | 2013 | 2012 | |||||||||
In millions | ||||||||||||
Balance at January 1 | $ | 1,026 | $ | 990 | $ | 1,010 | ||||||
Net income (loss) attributable to noncontrolling interests | 67 | 29 | (82 | ) | ||||||||
Distributions to noncontrolling interests (1) | (64 | ) | (55 | ) | (73 | ) | ||||||
Capital contributions (noncash - 2014: $-; 2013: $-; 2012: $97) | 36 | 58 | 97 | |||||||||
Consolidation of variable interest entities (2) | — | — | 37 | |||||||||
Purchases of noncontrolling interests (2) | (56 | ) | — | — | ||||||||
Transfers of redeemable noncontrolling interest | (46 | ) | (9 | ) | — | |||||||
Cumulative translation adjustments | (29 | ) | (43 | ) | — | |||||||
Deconsolidation of noncontrolling interests | — | 52 | — | |||||||||
Other | (3 | ) | 4 | 1 | ||||||||
Balance at December 31 | $ | 931 | $ | 1,026 | $ | 990 | ||||||
OPERATING_SEGMENTS_AND_GEOGRAP1
OPERATING SEGMENTS AND GEOGRAPHIC AREAS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | |||||||||||||||||||||||||||||
Geographic Area Information (1) | United States | Europe, | Rest of World | Total | |||||||||||||||||||||||||
In millions | Middle East, Africa and India | ||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Sales to external customers | $ | 19,449 | $ | 19,671 | $ | 19,047 | $ | 58,167 | |||||||||||||||||||||
Long-lived assets | $ | 10,605 | $ | 2,628 | $ | 4,818 | $ | 18,051 | |||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Sales to external customers | $ | 18,712 | $ | 19,208 | $ | 19,160 | $ | 57,080 | |||||||||||||||||||||
Long-lived assets | $ | 9,320 | $ | 3,256 | $ | 4,878 | $ | 17,454 | |||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Sales to external customers | $ | 18,391 | $ | 20,038 | $ | 18,357 | $ | 56,786 | |||||||||||||||||||||
Long-lived assets | $ | 8,953 | $ | 3,426 | $ | 5,141 | $ | 17,520 | |||||||||||||||||||||
-1 | The Indian subcontinent, previously reported with Rest of World, is now aligned with Europe, Middle East, Africa and India; prior period sales and long-lived assets have been adjusted to reflect this realignment. | ||||||||||||||||||||||||||||
Schedule of Operating Segments | |||||||||||||||||||||||||||||
Operating Segment Information | Agri-cultural Sciences | Consumer Solutions | Infra-stucture Solutions | Perf Materials & Chemicals | Perf Plastics | Corp | Total | ||||||||||||||||||||||
In millions | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Sales to external customers | $ | 7,290 | $ | 4,639 | $ | 8,429 | $ | 15,114 | $ | 22,386 | $ | 309 | $ | 58,167 | |||||||||||||||
Intersegment revenues (1) | — | — | — | 100 | — | (100 | ) | — | |||||||||||||||||||||
Equity in earnings (losses) of nonconsolidated affiliates | 4 | 281 | (6 | ) | 322 | 257 | (23 | ) | 835 | ||||||||||||||||||||
Goodwill and other intangible asset impairment losses (2) | — | 50 | — | — | — | — | 50 | ||||||||||||||||||||||
Restructuring charges (credits) (3) | — | — | — | (3 | ) | — | — | (3 | ) | ||||||||||||||||||||
Asbestos-related charge (4) | — | — | — | — | — | 78 | 78 | ||||||||||||||||||||||
EBITDA (5) | 962 | 1,130 | 817 | 2,193 | 4,422 | (580 | ) | 8,944 | |||||||||||||||||||||
Total assets | 7,292 | 9,629 | 12,245 | 12,179 | 13,459 | 13,992 | 68,796 | ||||||||||||||||||||||
Investment in nonconsolidated affiliates | 83 | 691 | 922 | 698 | 705 | 1,102 | 4,201 | ||||||||||||||||||||||
Depreciation and amortization | 208 | 396 | 510 | 780 | 759 | 94 | 2,747 | ||||||||||||||||||||||
Capital expenditures | 383 | 114 | 269 | 315 | 2,490 | 1 | 3,572 | ||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Sales to external customers | $ | 7,137 | $ | 4,562 | $ | 8,339 | $ | 14,824 | $ | 21,910 | $ | 308 | $ | 57,080 | |||||||||||||||
Intersegment revenues (1) | — | — | — | 137 | — | (137 | ) | — | |||||||||||||||||||||
Equity in earnings (losses) of nonconsolidated affiliates | 5 | 107 | 126 | 480 | 355 | (39 | ) | 1,034 | |||||||||||||||||||||
Restructuring charges (credits) (3) | — | — | (1 | ) | (15 | ) | (6 | ) | — | (22 | ) | ||||||||||||||||||
EBITDA (5) | 894 | 933 | 941 | 1,913 | 4,503 | 1,361 | 10,545 | ||||||||||||||||||||||
Total assets | 7,059 | 10,171 | 12,844 | 12,085 | 13,788 | 13,554 | 69,501 | ||||||||||||||||||||||
Investment in nonconsolidated affiliates | 88 | 541 | 1,178 | 827 | 772 | 1,095 | 4,501 | ||||||||||||||||||||||
Depreciation and amortization | 189 | 414 | 528 | 743 | 707 | 100 | 2,681 | ||||||||||||||||||||||
Capital expenditures | 319 | 105 | 198 | 409 | 1,271 | — | 2,302 | ||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Sales to external customers | $ | 6,382 | $ | 4,518 | $ | 8,071 | $ | 14,981 | $ | 22,588 | $ | 246 | $ | 56,786 | |||||||||||||||
Intersegment revenues (1) | — | — | — | 150 | — | (150 | ) | — | |||||||||||||||||||||
Equity in earnings (losses) of nonconsolidated affiliates | 1 | 87 | 58 | 362 | 130 | (102 | ) | 536 | |||||||||||||||||||||
Goodwill and other intangibles impairment losses (2) | — | — | — | 220 | — | — | 220 | ||||||||||||||||||||||
Restructuring charges (credits) (3) | — | 136 | 61 | 299 | 33 | 814 | 1,343 | ||||||||||||||||||||||
EBITDA (5) | 923 | 773 | 963 | 1,603 | 2,924 | (1,595 | ) | 5,591 | |||||||||||||||||||||
Total assets | 6,368 | 10,597 | 13,104 | 13,164 | 13,560 | 12,812 | 69,605 | ||||||||||||||||||||||
Investment in nonconsolidated affiliates | 86 | 422 | 1,081 | 790 | 744 | 998 | 4,121 | ||||||||||||||||||||||
Depreciation and amortization | 176 | 416 | 542 | 783 | 672 | 109 | 2,698 | ||||||||||||||||||||||
Capital expenditures | 321 | 244 | 292 | 759 | 951 | 47 | 2,614 | ||||||||||||||||||||||
-1 | Includes revenues generated by transfers of product to Agricultural Sciences from other segments, generally at market-based prices. Other transfers of products between operating segments are generally valued at cost. | ||||||||||||||||||||||||||||
-2 | See Note 11 for information regarding intangible asset impairment losses and Note 9 for information regarding the goodwill impairment loss. | ||||||||||||||||||||||||||||
-3 | See Note 3 for information regarding restructuring charges and credits. | ||||||||||||||||||||||||||||
-4 | See Note 14 for information regarding the asbestos-related charge. | ||||||||||||||||||||||||||||
-5 | A reconciliation of EBITDA to “Income Before Income Taxes” is provided below. | ||||||||||||||||||||||||||||
Reconciliation of EBITDA to “Income Before Income Taxes” | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
In millions | |||||||||||||||||||||||||||||
EBITDA | $ | 8,944 | $ | 10,545 | $ | 5,591 | |||||||||||||||||||||||
- Depreciation and amortization | 2,747 | 2,681 | 2,698 | ||||||||||||||||||||||||||
+ Interest income | 51 | 41 | 41 | ||||||||||||||||||||||||||
- Interest expense and amortization of debt discount | 983 | 1,101 | 1,269 | ||||||||||||||||||||||||||
Income Before Income Taxes | $ | 5,265 | $ | 6,804 | $ | 1,665 | |||||||||||||||||||||||
Reconciliation of EBITDA to Income Before Income Taxes | |||||||||||||||||||||||||||||
Reconciliation of EBITDA to “Income Before Income Taxes” | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
In millions | |||||||||||||||||||||||||||||
EBITDA | $ | 8,944 | $ | 10,545 | $ | 5,591 | |||||||||||||||||||||||
- Depreciation and amortization | 2,747 | 2,681 | 2,698 | ||||||||||||||||||||||||||
+ Interest income | 51 | 41 | 41 | ||||||||||||||||||||||||||
- Interest expense and amortization of debt discount | 983 | 1,101 | 1,269 | ||||||||||||||||||||||||||
Income Before Income Taxes | $ | 5,265 | $ | 6,804 | $ | 1,665 | |||||||||||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Y | |||
Amortization Period for Cost Capitalized on Asset Retirement Obligations (in years) | 10 | ||
Sales Revenue, Goods, Net, Percentage | 99.00% | 99.00% | 99.00% |
Sales Revenue, Non Goods, Net, Percentage | 1.00% | 1.00% | 1.00% |
RESTRUCTURING_4Q12_Restructuri
RESTRUCTURING (4Q12 Restructuring) (Details) (USD $) | 12 Months Ended | 3 Months Ended | 36 Months Ended | 27 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | |||
employees | Facilities | employees | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Entity Number of Employees | 53,000 | 53,000 | 53,000 | |||||||
Restructuring charges | ($3) | [1] | ($22) | [1] | $1,343 | [1] | ||||
Consumer Solutions [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | 0 | [1] | 0 | [1] | 136 | [1] | ||||
Infrastructure Solutions [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | 0 | [1] | -1 | [1] | 61 | [1] | ||||
Other Asset Impairment Charges | 93 | |||||||||
Performance Materials & Chemicals [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | -3 | [1] | -15 | [1] | 299 | [1] | ||||
Other Asset Impairment Charges | 70 | |||||||||
Performance Plastics [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | 0 | [1] | -6 | [1] | 33 | [1] | ||||
Corporate Segment [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Other Asset Impairment Charges | 15 | |||||||||
4Q12 Restructuring [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Number of Manufacturing Facilities to be impaired and shutdown | 20 | 20 | ||||||||
Restructuring Reserve, Settled with Cash | -110 | -233 | -8 | |||||||
Restructuring Reserve | 45 | 158 | 397 | 158 | 397 | 45 | 45 | |||
Restructuring charges | 990 | 990 | 981 | |||||||
Other Asset Impairment Charges | 246 | |||||||||
Charges against reserve | -585 | |||||||||
Restructuring Reserve, Accrual Adjustment | -3 | -6 | ||||||||
4Q12 Restructuring [Member] | Exit Or Disposal Activities [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring Reserve, Settled with Cash | -4 | -5 | 0 | |||||||
Restructuring Reserve | 12 | 19 | 30 | 19 | 30 | 12 | 12 | |||
Exit or disposal activities | 39 | 39 | 30 | |||||||
ContractCancellationFees | 25 | |||||||||
Other Restructuring Costs | 5 | |||||||||
Charges against reserve | -9 | |||||||||
4Q12 Restructuring [Member] | Employee Severance [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | 2,850 | |||||||||
Restructuring Reserve, Settled with Cash | -106 | -228 | -8 | -342 | ||||||
Restructuring Reserve | 33 | 139 | 367 | 139 | 367 | 33 | 33 | |||
Entity Number of Employees | 230 | 230 | 230 | |||||||
Severance Costs | 375 | 375 | 375 | |||||||
Charges against reserve | 0 | |||||||||
Restructuring Reserve, Accrual Adjustment | 0 | 0 | ||||||||
4Q12 Restructuring [Member] | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring Reserve, Settled with Cash | 0 | 0 | 0 | |||||||
Restructuring Reserve | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Other Asset Impairment Charges | 576 | 576 | 576 | |||||||
Charges against reserve | -576 | |||||||||
Restructuring Reserve, Accrual Adjustment | 0 | 0 | ||||||||
4Q12 Restructuring [Member] | Consumer Solutions [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | 136 | |||||||||
4Q12 Restructuring [Member] | Consumer Solutions [Member] | Exit Or Disposal Activities [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Exit or disposal activities | 0 | |||||||||
4Q12 Restructuring [Member] | Consumer Solutions [Member] | Employee Severance [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Severance Costs | 0 | |||||||||
4Q12 Restructuring [Member] | Consumer Solutions [Member] | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Other Asset Impairment Charges | 136 | |||||||||
4Q12 Restructuring [Member] | Infrastructure Solutions [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | 24 | |||||||||
4Q12 Restructuring [Member] | Infrastructure Solutions [Member] | Exit Or Disposal Activities [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Exit or disposal activities | 0 | |||||||||
4Q12 Restructuring [Member] | Infrastructure Solutions [Member] | Employee Severance [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Severance Costs | 0 | |||||||||
4Q12 Restructuring [Member] | Infrastructure Solutions [Member] | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Other Asset Impairment Charges | 24 | |||||||||
4Q12 Restructuring [Member] | Performance Materials & Chemicals [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | 96 | |||||||||
Restructuring Reserve, Accrual Adjustment | -3 | |||||||||
4Q12 Restructuring [Member] | Performance Materials & Chemicals [Member] | Exit Or Disposal Activities [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Exit or disposal activities | 19 | |||||||||
ContractCancellationFees | 17 | |||||||||
Other Restructuring Costs | 2 | |||||||||
Restructuring Reserve, Accrual Adjustment | -3 | |||||||||
4Q12 Restructuring [Member] | Performance Materials & Chemicals [Member] | Employee Severance [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Severance Costs | 0 | |||||||||
Restructuring Reserve, Accrual Adjustment | 0 | |||||||||
4Q12 Restructuring [Member] | Performance Materials & Chemicals [Member] | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Other Asset Impairment Charges | 77 | |||||||||
Restructuring Reserve, Accrual Adjustment | 0 | |||||||||
4Q12 Restructuring [Member] | Performance Plastics [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | 33 | |||||||||
Restructuring Reserve, Accrual Adjustment | -6 | |||||||||
4Q12 Restructuring [Member] | Performance Plastics [Member] | Exit Or Disposal Activities [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Exit or disposal activities | 8 | |||||||||
ContractCancellationFees | 8 | |||||||||
Restructuring Reserve, Accrual Adjustment | -6 | |||||||||
4Q12 Restructuring [Member] | Performance Plastics [Member] | Employee Severance [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Severance Costs | 0 | |||||||||
Restructuring Reserve, Accrual Adjustment | 0 | |||||||||
4Q12 Restructuring [Member] | Performance Plastics [Member] | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Other Asset Impairment Charges | 25 | |||||||||
Restructuring Reserve, Accrual Adjustment | 0 | |||||||||
4Q12 Restructuring [Member] | Corporate Segment [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | 701 | |||||||||
4Q12 Restructuring [Member] | Corporate Segment [Member] | Exit Or Disposal Activities [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Exit or disposal activities | 12 | |||||||||
CurtailmentCosts | 9 | |||||||||
Other Restructuring Costs | 3 | |||||||||
4Q12 Restructuring [Member] | Corporate Segment [Member] | Employee Severance [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Severance Costs | 375 | |||||||||
4Q12 Restructuring [Member] | Corporate Segment [Member] | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Other Asset Impairment Charges | 314 | |||||||||
Dow Kokam LLC [Member] | Corporate Segment [Member] | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Other Asset Impairment Charges | 303 | |||||||||
Ownership interest in subsidiary | 63.60% | 63.60% | ||||||||
Impairment Impact to Company Net of Taxes and Noncontrolling Interest | 189 | |||||||||
DowAutomotiveSystemsDieselParticulateFiltersPlant [Member] | Consumer Solutions [Member] | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Other Asset Impairment Charges | 114 | |||||||||
Certain Industrial Solutions Manufacturing Facilities in Texas [Member] | Performance Materials & Chemicals [Member] | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Other Asset Impairment Charges | 36 | |||||||||
Sodium Borhidrate Manufacturing Facility in The Netherlands [Member] | Performance Materials & Chemicals [Member] | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Other Asset Impairment Charges | 17 | |||||||||
Interconnect Technologies Manufacturing Facilities [Member] | Consumer Solutions [Member] | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Other Asset Impairment Charges | 13 | |||||||||
Polyethylene Manufacturing Facility in Belgium [Member] | Performance Plastics [Member] | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Other Asset Impairment Charges | 9 | |||||||||
Certain Energy & Water Solutions Manufacturing Facilities in Michigan [Domain] | Infrastructure Solutions [Member] | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Other Asset Impairment Charges | 9 | |||||||||
Polyurethanes Manufacturing Facility in Ohio [Member] | Performance Materials & Chemicals [Member] | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Other Asset Impairment Charges | 6 | |||||||||
Other Small Manufacturing Facilities [Member] | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Other Asset Impairment Charges | 42 | |||||||||
Other Small Manufacturing Facilities [Member] | Consumer Solutions [Member] | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Other Asset Impairment Charges | 9 | |||||||||
Other Small Manufacturing Facilities [Member] | Infrastructure Solutions [Member] | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Other Asset Impairment Charges | 12 | |||||||||
Other Small Manufacturing Facilities [Member] | Performance Materials & Chemicals [Member] | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Other Asset Impairment Charges | 15 | |||||||||
Other Small Manufacturing Facilities [Member] | Corporate Segment [Member] | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Other Asset Impairment Charges | 6 | |||||||||
Capital Projects Canceled [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Other Asset Impairment Charges | 8 | |||||||||
Capital Projects Canceled [Member] | Infrastructure Solutions [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Other Asset Impairment Charges | 1 | |||||||||
Capital Projects Canceled [Member] | Performance Plastics [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Other Asset Impairment Charges | 7 | |||||||||
Nippon Unicar Company Limited [Member] | Performance Plastics [Member] | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Other Asset Impairment Charges | 9 | |||||||||
Other Assets Written-Off associated with Plant Closures [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Other Asset Impairment Charges | $10 | |||||||||
[1] | See Note 3 for information regarding restructuring charges and credits. |
RESTRUCTURING_1Q12_Restructuri
RESTRUCTURING (1Q12 Restructuring) (Details) (USD $) | 12 Months Ended | 3 Months Ended | 24 Months Ended | 3 Months Ended | 24 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |||
employees | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Entity Number of Employees | 53,000 | ||||||||||
Restructuring charges | ($3) | [1] | ($22) | [1] | $1,343 | [1] | |||||
Infrastructure Solutions [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 0 | [1] | -1 | [1] | 61 | [1] | |||||
Other Asset Impairment Charges | 93 | ||||||||||
Performance Materials & Chemicals [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | -3 | [1] | -15 | [1] | 299 | [1] | |||||
Other Asset Impairment Charges | 70 | ||||||||||
Corporate [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Other Asset Impairment Charges | 15 | ||||||||||
1Q12 Restructuring [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Reserve, Settled with Cash | -43 | -127 | |||||||||
Restructuring Reserve | 19 | 87 | 19 | 19 | 87 | 19 | |||||
Restructuring charges | 357 | ||||||||||
Restructuring Reserve, Accrual Adjustment | -16 | -4 | |||||||||
Charges against reserve | -90 | ||||||||||
Restructuring Reserve, Settled without Cash | -8 | -47 | |||||||||
Restructuring Reserve, Translation Adjustment | -1 | -2 | |||||||||
1Q12 Restructuring [Member] | Exit Or Disposal Activities [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Reserve, Settled with Cash | -15 | -45 | |||||||||
Restructuring Reserve | 16 | 56 | 16 | 16 | 56 | 16 | |||||
Restructuring Reserve, Accrual Adjustment | -16 | 0 | |||||||||
Exit or disposal activities | 150 | ||||||||||
ContractCancellationFees | 149 | ||||||||||
Charges against reserve | 0 | ||||||||||
Restructuring Reserve, Settled without Cash | -8 | -47 | |||||||||
Restructuring Reserve, Translation Adjustment | -1 | -2 | |||||||||
1Q12 Restructuring [Member] | Employee Severance [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | 900 | ||||||||||
Restructuring Reserve, Settled with Cash | -28 | -82 | -110 | ||||||||
Restructuring Reserve | 3 | 3 | 31 | 3 | 3 | 31 | 3 | ||||
Entity Number of Employees | 42 | ||||||||||
Restructuring Reserve, Accrual Adjustment | 0 | 0 | |||||||||
Severance Costs | 113 | ||||||||||
Charges against reserve | 0 | ||||||||||
Restructuring Reserve, Settled without Cash | 0 | 0 | |||||||||
Restructuring Reserve, Translation Adjustment | 0 | 0 | |||||||||
1Q12 Restructuring [Member] | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Reserve, Settled with Cash | 0 | 0 | |||||||||
Restructuring Reserve | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Restructuring Reserve, Accrual Adjustment | 0 | -4 | |||||||||
Other Asset Impairment Charges | 94 | ||||||||||
Charges against reserve | -90 | ||||||||||
Restructuring Reserve, Settled without Cash | 0 | 0 | |||||||||
Restructuring Reserve, Translation Adjustment | 0 | 0 | |||||||||
1Q12 Restructuring [Member] | Infrastructure Solutions [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 41 | ||||||||||
Restructuring Reserve, Accrual Adjustment | -1 | -4 | |||||||||
1Q12 Restructuring [Member] | Infrastructure Solutions [Member] | Exit Or Disposal Activities [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Reserve, Accrual Adjustment | -1 | 0 | |||||||||
Exit or disposal activities | 4 | ||||||||||
ContractCancellationFees | 3 | ||||||||||
Other Restructuring Costs | 1 | ||||||||||
1Q12 Restructuring [Member] | Infrastructure Solutions [Member] | Employee Severance [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Reserve, Accrual Adjustment | 0 | 0 | |||||||||
Severance Costs | 0 | ||||||||||
1Q12 Restructuring [Member] | Infrastructure Solutions [Member] | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Reserve, Accrual Adjustment | 0 | -4 | |||||||||
Other Asset Impairment Charges | 37 | ||||||||||
1Q12 Restructuring [Member] | Performance Materials & Chemicals [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 203 | ||||||||||
Restructuring Reserve, Accrual Adjustment | -15 | ||||||||||
1Q12 Restructuring [Member] | Performance Materials & Chemicals [Member] | Exit Or Disposal Activities [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Reserve, Accrual Adjustment | -15 | ||||||||||
Exit or disposal activities | 146 | ||||||||||
ContractCancellationFees | 146 | ||||||||||
1Q12 Restructuring [Member] | Performance Materials & Chemicals [Member] | Employee Severance [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Reserve, Accrual Adjustment | 0 | ||||||||||
Severance Costs | 0 | ||||||||||
1Q12 Restructuring [Member] | Performance Materials & Chemicals [Member] | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Reserve, Accrual Adjustment | 0 | ||||||||||
Other Asset Impairment Charges | 57 | ||||||||||
1Q12 Restructuring [Member] | Corporate [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 113 | ||||||||||
1Q12 Restructuring [Member] | Corporate [Member] | Exit Or Disposal Activities [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Exit or disposal activities | 0 | ||||||||||
1Q12 Restructuring [Member] | Corporate [Member] | Employee Severance [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Severance Costs | 113 | ||||||||||
1Q12 Restructuring [Member] | Corporate [Member] | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Other Asset Impairment Charges | 0 | ||||||||||
Shut Down And Consolidation of Polyurethanes and Epoxy Assets [Member] | Performance Materials & Chemicals [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Other Asset Impairment Charges | 15 | ||||||||||
Capital Project, Impairment of Long Lived Assets and Other Assets [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Other Asset Impairment Charges | 42 | ||||||||||
1Q 2012 Restructuring Charges Net of Adjustments [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 337 | ||||||||||
1Q 2012 Restructuring Charges Net of Adjustments [Member] | Exit Or Disposal Activities [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Exit or disposal activities | 134 | ||||||||||
1Q 2012 Restructuring Charges Net of Adjustments [Member] | Employee Severance [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Severance Costs | 113 | ||||||||||
1Q 2012 Restructuring Charges Net of Adjustments [Member] | Impairment of Long-Lived Assets, Other Assets and Equity Method Investments [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Other Asset Impairment Charges | $90 | ||||||||||
[1] | See Note 3 for information regarding restructuring charges and credits. |
RESTRUCTURING_2014_Adjustments
RESTRUCTURING (2014 Adjustments to the 4Q12 Restructuring Plan) (Details) (4Q12 Restructuring [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Accrual Adjustment | ($3) | ($6) |
Performance Materials & Chemicals [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Accrual Adjustment | -3 | |
Exit Or Disposal Activities [Member] | Performance Materials & Chemicals [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Accrual Adjustment | ($3) |
RESTRUCTURING_2013_Adjustments
RESTRUCTURING (2013 Adjustments to the 1Q12 and 4Q12 Restructuring Plans) (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
4Q12 Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Accrual Adjustment | ($3) | ($6) | ||
4Q12 Restructuring [Member] | Performance Plastics [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Accrual Adjustment | -6 | |||
4Q12 Restructuring [Member] | Performance Materials & Chemicals [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Accrual Adjustment | -3 | |||
4Q12 Restructuring [Member] | Exit Or Disposal Activities [Member] | Performance Plastics [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Accrual Adjustment | -6 | |||
4Q12 Restructuring [Member] | Exit Or Disposal Activities [Member] | Performance Materials & Chemicals [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Accrual Adjustment | -3 | |||
1Q12 Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Accrual Adjustment | -16 | -4 | ||
1Q12 Restructuring [Member] | Infrastructure Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Accrual Adjustment | -1 | -4 | ||
1Q12 Restructuring [Member] | Performance Materials & Chemicals [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Accrual Adjustment | -15 | |||
1Q12 Restructuring [Member] | Exit Or Disposal Activities [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Accrual Adjustment | -16 | 0 | ||
1Q12 Restructuring [Member] | Exit Or Disposal Activities [Member] | Infrastructure Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Accrual Adjustment | -1 | 0 | ||
1Q12 Restructuring [Member] | Exit Or Disposal Activities [Member] | Performance Materials & Chemicals [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Accrual Adjustment | ($15) |
ACQUISITIONS_Acquisition_of_Co
ACQUISITIONS (Acquisition of Coodetec) (Details) (Subsequent Event [Member], Coodetec [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Subsequent Event [Member] | Coodetec [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Consideration Transferred | $145 |
DIVESTITURES_Divestiture_of_So
DIVESTITURES (Divestiture of Sodium Borohydride Business) (Details) (Subsequent Event [Member], Performance Materials & Chemicals [Member], Sodium Borohydride business [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Subsequent Event [Member] | Performance Materials & Chemicals [Member] | Sodium Borohydride business [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Proceeds from Divestiture of Businesses | $190 |
DIVESTITURES_Divestiture_of_AN
DIVESTITURES (Divestiture of ANGUS Chemical Company) (Details) (Subsequent Event [Member], Performance Materials & Chemicals [Member], ANGUS Chemical Company [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Subsequent Event [Member] | Performance Materials & Chemicals [Member] | ANGUS Chemical Company [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Proceeds from Divestiture of Businesses | $1,215 |
DIVESTITURES_Divestiture_of_Po
DIVESTITURES (Divestiture of Polypropylene Licensing and Catalysts Business) (Details) (Polypropylene Licensing and Catalyst Busines [Member], USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 02, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from Divestiture of Businesses | $490 | |||||
Performance Plastics [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net value divested | 39 | |||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 451 | 5 | 5 | 451 | 0 | |
Disposal Group Not Discontinued Operation Gain (Loss) On Disposal After Tax | $356 | $3 |
DIVESTITURES_Divestiture_of_Ow
DIVESTITURES (Divestiture of Ownership Interest in Dow Kokam LLC) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 11 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2013 | Nov. 21, 2013 | Nov. 22, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Repayments of Long-term Debt | $747 | $4,272 | $3,988 | ||||
Dow Kokam LLC [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Repayments of Long-term Debt | 75 | ||||||
Notes Receivable, Fair Value Disclosure | 75 | ||||||
Notes, Loans and Financing Receivable, Net, Noncurrent | 61 | ||||||
Dow Kokam LLC [Member] | Corporate Segment [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Sale of Stock, Percentage of Ownership before Transaction | 67.40% | ||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $0 | $26 | [1] | $0 | $26 | ||
[1] | See Note 5 for additional information. |
DIVESTITURES_Divestiture_of_a_
DIVESTITURES (Divestiture of a Contract Manufacturing Business) (Details) (Chemoxy International Limited [Member], USD $) | 12 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $0 | $0 | $8 | |
Performance Materials & Chemicals [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 8 | |||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $8 |
INVENTORIES_Schedule_of_Invent
INVENTORIES (Schedule of Inventories) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Inventory Disclosure [Abstract] | |||
Finished goods | $4,547 | $4,717 | |
Work in process | 1,905 | 1,948 | |
Raw materials | 797 | 760 | |
Supplies | 852 | 878 | |
Total inventories | 8,101 | 8,303 | |
Inventory, LIFO Reserve | 569 | 854 | |
Percentage of LIFO Inventory | 29.00% | 25.00% | |
Effect of LIFO Inventory Liquidation on Income | $23 | $55 | $91 |
PROPERTY_Schedule_of_Property_
PROPERTY (Schedule of Property) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Property | 55,230 | $55,114 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property | 874 | 907 |
Land and waterway improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property | 1,374 | 1,404 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property | 4,910 | 4,945 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property | 39,278 | 39,971 |
Utility and Supply Lines [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property | 2,448 | 2,446 |
Other property [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property | 1,940 | 2,430 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property | 4,406 | $3,011 |
Minimum [Member] | Land and waterway improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 15 years | |
Minimum [Member] | Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 5 years | |
Minimum [Member] | Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 3 years | |
Minimum [Member] | Utility and Supply Lines [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 5 years | |
Minimum [Member] | Other property [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 3 years | |
Maximum [Member] | Land and waterway improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 25 years | |
Maximum [Member] | Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 55 years | |
Maximum [Member] | Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 20 years | |
Maximum [Member] | Utility and Supply Lines [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 20 years | |
Maximum [Member] | Other property [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 50 years |
PROPERTY_Schedule_of_Other_Ite
PROPERTY (Schedule of Other Items Related to Property) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $2,136 | $2,051 | $2,057 |
Manufacturing maintenance and repair costs | 2,117 | 2,325 | 2,188 |
Capitalized interest | $125 | $78 | $84 |
NONCONSOLIDATED_AFFILIATES_AND2
NONCONSOLIDATED AFFILIATES AND RELATED COMPANY TRANSACTIONS, Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Equity Method Investments [Line Items] | |||
Investment in nonconsolidated affiliates | $4,201 | $4,501 | $4,121 |
Equity Method Investment, Dividends or Distributions | 961 | 905 | 823 |
Equity Method Investment, Accrued Dividends | 5 | ||
Exclusive of additional differences for Dow Corning and MEGlobal [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | -56 | -67 | |
Dow Corning Corporation [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | 149 | 149 | |
MEGlobal [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | 177 | 184 | |
MEGlobal, Amount Amortized Over the Remaining Useful Lives of the Assets [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | 41 | ||
MEGlobal Permanent Difference in Investment with Investor [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | 136 | ||
MEGlobal, Reduction in Permanent Difference Due to Purchase of Noncontrolling Interest [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | $3 |
NONCONSOLIDATED_AFFILIATES_AND3
NONCONSOLIDATED AFFILIATES AND RELATED COMPANY TRANSACTIONS, Balances Due To or Due From Nonconsolidated Affiliates (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | |||
Schedule of Equity Method Investments [Line Items] | |||
Notes Payable, Balance Due To Nonconsolidated Affiliates | $189 | $137 | |
Equity Method Investee [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Accounts and notes receivable - other, Balance Due From Nonconsolidated Affiliates | 511 | 512 | |
Noncurrent receivables, Balance Due From Nonconsolidated Affiliates | 212 | [1] | 5 |
Total assets, Balance Due From Nonconsolidated Affiliates | 723 | 517 | |
Notes Payable, Balance Due To Nonconsolidated Affiliates | 189 | 137 | |
Accounts Payable, Balance Due To Nonconsolidated Affiliates | 274 | 221 | |
Total current liabilities, Balance Due To Nonconsolidated Affiliates | 463 | 358 | |
Sadara [Member] | Equity Method Investee [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Noncurrent receivables, Balance Due From Nonconsolidated Affiliates | $193 | ||
[1] | Included in "Noncurrent receivables" is a $193 million note receivable from Sadara that is expected to be converted into equity in the first quarter of 2015. |
NONCONSOLIDATED_AFFILIATES_AND4
NONCONSOLIDATED AFFILIATES AND RELATED COMPANY TRANSACTIONS, Schedule of the Company's Direct or Indirect Ownership Interest in Principal Nonconsolidated Affiliates (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Schedule of Equity Method Investments [Line Items] | ||||||
Investment in nonconsolidated affiliates | $4,201 | $4,501 | $4,121 | |||
Equity in earnings of nonconsolidated affiliates | 835 | 1,034 | 536 | |||
Dow Corning Corporation [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% | |||
EQUATE Petrochemical Company K.S.C. [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 42.50% | [1] | 42.50% | [1] | 42.50% | [1] |
The Kuwait Olefins Company K.S.C. [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 42.50% | [1] | 42.50% | [1] | 42.50% | [1] |
The Kuwait Styrene Company KSC [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 42.50% | [1],[2] | ||||
Map Ta Phut Olefins Company [Domain] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 32.77% | [3] | 32.77% | [3] | 32.77% | [3] |
MEGlobal [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 50.00% | [1] | 50.00% | [1] | 50.00% | [1] |
Sadara [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 35.00% | 35.00% | 35.00% | |||
Siam Polyethylene Company Limited [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% | |||
Siam Polystyrene Company Limited [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% | |||
Siam Styrene Monomer Co, Ltd [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% | |||
Siam Synthetic Latex Company Limited [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% | |||
Univation Technologies, LLC [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 50.00% | [4] | 50.00% | [4] | 50.00% | [4] |
Nonconsolidated Affiliates [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of Nonconsolidated Affiliates | 59 | 63 | ||||
Principal Nonconsolidated Affiliates [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investment in nonconsolidated affiliates | 3,487 | 3,625 | ||||
Equity in earnings of nonconsolidated affiliates | $845 | $951 | $479 | |||
Direct Ownership Interest [Domain] | Map Ta Phut Olefins Company [Domain] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 20.27% | |||||
Indirect Ownership Interest [Domain] [Domain] | Map Ta Phut Olefins Company [Domain] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 12.50% | |||||
[1] | In the fourth quarter of 2014, the Company announced it will reconfigure and reduce its equity base in EQUATE Petrochemical Company K.S.C., The Kuwait Olefins Company K.S.C., The Kuwait Styrene Company K.S.C. and MEGlobal through a divestment of a portion of the Companybs interests. Dow expects such transaction(s) to be completed by mid-2016. | |||||
[2] | The Kuwait Styrene Company K.S.C. was added as a principal nonconsolidated affiliate in the fourth quarter of 2014. | |||||
[3] | The Company's effective ownership of Map Ta Phut Olefins Company Limited is 32.77 percent, of which the Company directly owns 20.27 percent and indirectly owns 12.5 percent through its equity interest in Siam Polyethylene Company Limited and Siam Synthetic Latex Company Limited. | |||||
[4] | On October 2, 2014, the Company reached a definitive agreement with ExxonMobil Chemical Company to acquire the remaining 50 percent ownership interest in Univation Technologies, LLC ("Univation"), which will result in Univation becoming a wholly owned subsidiary of Dow. The transaction is expected to close in the first half of 2015, pending regulatory approvals. |
NONCONSOLIDATED_AFFILIATES_AND5
NONCONSOLIDATED AFFILIATES AND RELATED COMPANY TRANSACTIONS, Summarized Financial Information (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Schedule of Equity Method Investments [Line Items] | |||||
Percent of principal nonconsolidated entities financial information which is presented | 100.00% | ||||
Principal Nonconsolidated Affiliates [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Current assets | $9,611 | $8,675 | [1] | ||
Noncurrent assets | 27,025 | 24,166 | [1] | ||
Total assets | 36,636 | 32,841 | [1] | ||
Current liabilities | 6,321 | 5,972 | [1] | ||
Noncurrent liabilities | 21,047 | 17,129 | [1] | ||
Total liabilities | 27,368 | 23,101 | [1] | ||
Noncontrolling interests | 666 | 624 | [1] | ||
Sales | 19,333 | 18,257 | [2] | 17,668 | [2] |
Gross profit | 3,526 | 3,403 | [2] | 2,911 | [2] |
Net income | $1,673 | $1,906 | [2] | $872 | [2] |
[1] | The summarized balance sheet information for 2013 does not include the results of The Kuwait Styrene Company K.S.C. as this entity became a principal nonconsolidated affiliate in 2014. | ||||
[2] | The summarized income statement information for 2013 and 2012 does not include the results of The Kuwait Styrene Company K.S.C. as this entity became a principal nonconsolidated affiliate in 2014. |
NONCONSOLIDATED_AFFILIATES_AND6
NONCONSOLIDATED AFFILIATES AND RELATED COMPANY TRANSACTIONS, Impact of Sales to MEGlobal by Operating Segment (Details) (MEGlobal [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Equity Method Investments [Line Items] | |||
Percent of net total sales made to related party | 1.00% | 1.00% | 1.00% |
Performance Materials & Chemicals [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Percent of net total sales made to related party | 2.00% | 2.00% | 2.00% |
Performance Plastics [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Percent of net total sales made to related party | 1.00% | 2.00% | 1.00% |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Goodwill By Operating Segment) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Goodwill [Line Items] | ||||||
Goodwill, Acquired During Period | $5 | |||||
Goodwill, Purchase Accounting Adjustments | -5 | |||||
Goodwill [Roll Forward] | ||||||
Goodwill, gross, beginning balance | 13,227 | 13,168 | ||||
Goodwill, accumulated impairments, beginning balance | -429 | -429 | ||||
Net goodwill, beginning balance | 12,798 | 12,739 | ||||
Foreign currency impact | -161 | 57 | ||||
Goodwill, Written off Related to Sale of Business Unit | -3 | |||||
Net goodwill, ending balance | 12,739 | 12,632 | 12,798 | 12,739 | ||
Goodwill, accumulated impairments, ending balance | -429 | -429 | -429 | -429 | ||
Goodwill, gross, ending balance | 13,168 | 13,061 | 13,227 | 13,168 | ||
Goodwill impairment loss | -50 | [1] | 0 | -220 | [1] | |
Agricultural Sciences [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill, Acquired During Period | 5 | |||||
Goodwill, Purchase Accounting Adjustments | -5 | |||||
Goodwill [Roll Forward] | ||||||
Goodwill, gross, beginning balance | 1,563 | 1,558 | ||||
Goodwill, accumulated impairments, beginning balance | 0 | 0 | ||||
Net goodwill, beginning balance | 1,563 | 1,558 | ||||
Foreign currency impact | 0 | 0 | ||||
Goodwill, Written off Related to Sale of Business Unit | 0 | |||||
Net goodwill, ending balance | 1,558 | 1,558 | 1,563 | 1,558 | ||
Goodwill, accumulated impairments, ending balance | 0 | 0 | 0 | 0 | ||
Goodwill, gross, ending balance | 1,558 | 1,558 | 1,563 | 1,558 | ||
Goodwill impairment loss | 0 | [1] | 0 | [1] | ||
Consumer Solutions [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill, Acquired During Period | 0 | |||||
Goodwill, Purchase Accounting Adjustments | 0 | |||||
Goodwill [Roll Forward] | ||||||
Goodwill, gross, beginning balance | 4,618 | 4,611 | ||||
Goodwill, accumulated impairments, beginning balance | -209 | -209 | ||||
Net goodwill, beginning balance | 4,409 | 4,402 | ||||
Foreign currency impact | -20 | 7 | ||||
Goodwill, Written off Related to Sale of Business Unit | 0 | |||||
Net goodwill, ending balance | 4,402 | 4,389 | 4,409 | 4,402 | ||
Goodwill, accumulated impairments, ending balance | -209 | -209 | -209 | -209 | ||
Goodwill, gross, ending balance | 4,611 | 4,598 | 4,618 | 4,611 | ||
Goodwill impairment loss | -50 | [1] | 0 | [1] | ||
Infrastructure Solutions [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill, Acquired During Period | 0 | |||||
Goodwill, Purchase Accounting Adjustments | 0 | |||||
Goodwill [Roll Forward] | ||||||
Goodwill, gross, beginning balance | 4,540 | 4,511 | ||||
Goodwill, accumulated impairments, beginning balance | 0 | 0 | ||||
Net goodwill, beginning balance | 4,540 | 4,511 | ||||
Foreign currency impact | -89 | 32 | ||||
Goodwill, Written off Related to Sale of Business Unit | -3 | |||||
Net goodwill, ending balance | 4,511 | 4,451 | 4,540 | 4,511 | ||
Goodwill, accumulated impairments, ending balance | 0 | 0 | 0 | 0 | ||
Goodwill, gross, ending balance | 4,511 | 4,451 | 4,540 | 4,511 | ||
Goodwill impairment loss | 0 | [1] | 0 | [1] | ||
Performance Materials & Chemicals [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill, Acquired During Period | 0 | |||||
Goodwill, Purchase Accounting Adjustments | 0 | |||||
Goodwill [Roll Forward] | ||||||
Goodwill, gross, beginning balance | 1,041 | 1,037 | ||||
Goodwill, accumulated impairments, beginning balance | -220 | -220 | ||||
Net goodwill, beginning balance | 821 | 817 | ||||
Foreign currency impact | -12 | 4 | ||||
Goodwill, Written off Related to Sale of Business Unit | 0 | |||||
Net goodwill, ending balance | 817 | 809 | 821 | 817 | ||
Goodwill, accumulated impairments, ending balance | -220 | -220 | -220 | -220 | ||
Goodwill, gross, ending balance | 1,037 | 1,029 | 1,041 | 1,037 | ||
Goodwill impairment loss | -220 | 0 | [1] | -220 | [1] | |
Performance Plastics [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill, Acquired During Period | 0 | |||||
Goodwill, Purchase Accounting Adjustments | 0 | |||||
Goodwill [Roll Forward] | ||||||
Goodwill, gross, beginning balance | 1,465 | 1,451 | ||||
Goodwill, accumulated impairments, beginning balance | 0 | 0 | ||||
Net goodwill, beginning balance | 1,465 | 1,451 | ||||
Foreign currency impact | -40 | 14 | ||||
Goodwill, Written off Related to Sale of Business Unit | 0 | |||||
Net goodwill, ending balance | 1,425 | 1,465 | ||||
Goodwill, accumulated impairments, ending balance | 0 | 0 | ||||
Goodwill, gross, ending balance | $1,425 | $1,465 | ||||
[1] | See Note 11 for information regarding intangible asset impairment losses and Note 9 for information regarding the goodwill impairment loss. |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Other Intangible Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | $7,472 | $7,547 | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 33 | [1] | 37 | [1] |
Intangible assets gross carrying amount | 7,505 | 7,584 | ||
Other Intangible Assets, Accumulated Amortization | -3,737 | -3,270 | ||
Finite-Lived Intangible Assets, Net | 3,735 | 4,277 | ||
Other Intangible Assets, Net | 3,768 | 4,314 | ||
Licenses and Intellectual Property [Member] | ||||
Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 1,777 | 1,774 | ||
Other Intangible Assets, Accumulated Amortization | -1,060 | -908 | ||
Finite-Lived Intangible Assets, Net | 717 | 866 | ||
Patents [Member] | ||||
Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 122 | 125 | ||
Other Intangible Assets, Accumulated Amortization | -108 | -109 | ||
Finite-Lived Intangible Assets, Net | 14 | 16 | ||
Software [Member] | ||||
Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 1,287 | 1,186 | ||
Other Intangible Assets, Accumulated Amortization | -648 | -591 | ||
Finite-Lived Intangible Assets, Net | 639 | 595 | ||
Trademarks [Member] | ||||
Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 685 | 686 | ||
Other Intangible Assets, Accumulated Amortization | -409 | -345 | ||
Finite-Lived Intangible Assets, Net | 276 | 341 | ||
Customer Related [Member] | ||||
Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 3,443 | 3,622 | ||
Other Intangible Assets, Accumulated Amortization | -1,366 | -1,181 | ||
Finite-Lived Intangible Assets, Net | 2,077 | 2,441 | ||
Other Intangible Assets [Member] | ||||
Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 158 | 154 | ||
Other Intangible Assets, Accumulated Amortization | -146 | -136 | ||
Finite-Lived Intangible Assets, Net | $12 | $18 | ||
[1] | In-process research and development ("IPR&D") purchased in a business combination. |
GOODWILL_AND_OTHER_INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Amortization Expense of Intangible Assets) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization expense, other intangible assets, excluding software | $436 | [1] | $461 | [1] | $478 | [1] |
Amortization expense, software, included in 'Cost of sales' | 70 | 67 | 63 | |||
Amortization of intangibles [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Impairment of Intangible Assets (Excluding Goodwill) | 3 | |||||
Goodwill and other intangible asset impairment losses [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Impairment of Intangible Assets (Excluding Goodwill) | 50 | |||||
Cost of Sales [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Impairment of Intangible Assets (Excluding Goodwill) | $3 | |||||
[1] | Includes a $3 million asset impairment charge related to intangible assets in 2013. |
GOODWILL_AND_OTHER_INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Future Amortization Expense of Intangible Assets) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Estimated Amortization Expense, 2015 | $485 |
Estimated Amortization Expense, 2016 | 476 |
Estimated Amortization Expense, 2017 | 445 |
Estimated Amortization Expense, 2018 | 424 |
Estimated Amortization Expense, 2019 | $359 |
GOODWILL_AND_OTHER_INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS (Annual Goodwill Impairment Test) (Details) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
ReportingUnits | ReportingUnits | ReportingUnits | |
Goodwill [Line Items] | |||
Number of Reporting Units Carrying Goodwill | 14 | 19 | 20 |
Qualitative Goodwill Testing Approach [Member] | |||
Goodwill [Line Items] | |||
Number of Reporting Units Carrying Goodwill | 9 | 14 | 11 |
Quantitative Goodwill Testing Approach [Member] | |||
Goodwill [Line Items] | |||
Number of Reporting Units Carrying Goodwill | 5 | 5 | 9 |
FINANCIAL_INSTRUMENTS_Fair_Val
FINANCIAL INSTRUMENTS (Fair Value of Financial Instruments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Financial Instruments [Line Items] | ||||
Fair Value Adjustments | ($21) | ($22) | ||
Long-term Debt [Member] | ||||
Financial Instruments [Line Items] | ||||
Financial Instruments, Cost | -19,232 | [1] | -17,517 | [1] |
Financial Instruments, Gross Unrealized Gain | -100 | -296 | ||
Financial Instruments Gross Unrealized Losses | 2,318 | 2,246 | ||
Financial Instruments, Fair Value | 21,450 | 19,467 | ||
Foreign Currency Contract [Member] | ||||
Financial Instruments [Line Items] | ||||
Financial Instruments, Cost | 0 | 0 | ||
Financial Instruments, Gross Unrealized Gain | 26 | 45 | ||
Financial Instruments Gross Unrealized Losses | -71 | -13 | ||
Financial Instruments, Fair Value | -45 | 32 | ||
Commodity Contract [Member] | ||||
Financial Instruments [Line Items] | ||||
Financial Instruments, Cost | 0 | 0 | ||
Financial Instruments, Gross Unrealized Gain | 3 | 11 | ||
Financial Instruments Gross Unrealized Losses | -81 | [2] | -2 | [2] |
Financial Instruments, Fair Value | -78 | 9 | ||
Interest Rate Contract [Member] | ||||
Financial Instruments [Line Items] | ||||
Financial Instruments, Cost | 0 | 0 | ||
Financial Instruments, Gross Unrealized Gain | 0 | 0 | ||
Financial Instruments Gross Unrealized Losses | -12 | -5 | ||
Financial Instruments, Fair Value | -12 | -5 | ||
Equity Securities [Member] | ||||
Financial Instruments [Line Items] | ||||
Financial Instruments, Cost | -566 | [3] | -605 | [3] |
Financial Instruments, Gross Unrealized Gain | 177 | [3] | 196 | [3] |
Financial Instruments Gross Unrealized Losses | -15 | [3] | -4 | [3] |
Financial Instruments, Fair Value | 728 | [3] | 797 | [3] |
Marketable Securities [Member] | ||||
Financial Instruments [Line Items] | ||||
Financial Instruments, Cost | -1,779 | [3] | -1,808 | [3] |
Financial Instruments, Gross Unrealized Gain | 248 | [3] | 267 | [3] |
Financial Instruments Gross Unrealized Losses | -18 | [3] | -19 | [3] |
Financial Instruments, Fair Value | 2,009 | [3] | 2,056 | [3] |
Fixed Income Securities [Member] | ||||
Financial Instruments [Line Items] | ||||
Financial Instruments, Cost | -1,213 | [3] | -1,203 | [3] |
Financial Instruments, Gross Unrealized Gain | 71 | [3] | 71 | [3] |
Financial Instruments Gross Unrealized Losses | -3 | [3] | -15 | [3] |
Financial Instruments, Fair Value | 1,281 | [3] | 1,259 | [3] |
Us Treasury and Us Government Obligations [Member] | Fixed Income Securities [Member] | ||||
Financial Instruments [Line Items] | ||||
Financial Instruments, Cost | -559 | [3],[4] | -544 | [3],[4] |
Financial Instruments, Gross Unrealized Gain | 26 | [3],[4] | 28 | [3],[4] |
Financial Instruments Gross Unrealized Losses | -1 | [3],[4] | -8 | [3],[4] |
Financial Instruments, Fair Value | 584 | [3],[4] | 564 | [3],[4] |
Corporate Bond Securities [Member] | Fixed Income Securities [Member] | ||||
Financial Instruments [Line Items] | ||||
Financial Instruments, Cost | -654 | [3] | -659 | [3] |
Financial Instruments, Gross Unrealized Gain | 45 | [3] | 43 | [3] |
Financial Instruments Gross Unrealized Losses | -2 | [3] | -7 | [3] |
Financial Instruments, Fair Value | $697 | [3] | $695 | [3] |
[1] | Cost includes fair value adjustments of $21B million at DecemberB 31, 2014 and $22B million at DecemberB 31, 2013. | |||
[2] | Presented net of cash collateral, as disclosed in Note 11. | |||
[3] | Included in bOther investmentsb in the consolidated balance sheets. | |||
[4] | U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalitiesb obligations. |
FINANCIAL_INSTRUMENTS_Investme
FINANCIAL INSTRUMENTS (Investments) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financial Instruments [Abstact] | |||
Investing Results, Proceeds from sales of available-for-sale securities | $675 | $486 | $514 |
Investing Results, Gross realized gains | 99 | 66 | 40 |
Investing Results, Gross realized losses | -6 | -4 | -11 |
Contractual Maturities of Debt Securities, Within one year, Amortized Cost | 8 | ||
Contractual Maturities of Debt Securities, One to five years, Amortized Cost | 496 | ||
Contractual Maturities of Debt Securities, Six to ten years, Amortized Cost | 503 | ||
Contractual Maturities of Debt Securities, After ten years, Amortized Cost | 206 | ||
Contractual Maturities of Debt Securities, Total, Amortized Cost | 1,213 | ||
Contractual Maturities of Debt Securities, Within one year, Fair Value | 9 | ||
Contractual Maturities of Debt Securities, One to five years, Fair Value | 517 | ||
Contractual Maturities of Debt Securities, Six to ten years, Fair Value | 521 | ||
Contractual Maturities of Debt Securities, After ten years, Fair Value | 234 | ||
Contractual Maturities of Debt Securities, Total, Fair Value | 1,281 | ||
Held-to-maturity securities | 1,050 | 1,581 | |
Investments in money market funds | 1,655 | 1,331 | |
Net unrealized gain (loss) recognized in earnings on trading securities | $3 | ($13) | $1 |
FINANCIAL_INSTRUMENTS_Fair_Val1
FINANCIAL INSTRUMENTS (Fair Value and Gross Unrealized Losses of the Company's Investments) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Temporarily Impaired Securities, Less than 12 Months, Fair Value | $351 | [1] | $517 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months | -17 | [1] | -19 | [1] |
Other than temporary impairment write-downs on investments still held | 6 | 2 | ||
Cost method investments, aggregate cost | 181 | 185 | ||
Cost method investments, reduction in cost basis due to impairment | 18 | 6 | ||
Government Bonds [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Temporarily Impaired Securities, Less than 12 Months, Fair Value | 74 | [1],[2] | 160 | [1],[2] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months | -1 | [2] | -8 | [2] |
Corporate Bonds - Investment Grade [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Temporarily Impaired Securities, Less than 12 Months, Fair Value | 102 | [1] | 213 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months | -1 | [1] | -7 | [1] |
Equity Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Temporarily Impaired Securities, Less than 12 Months, Fair Value | 175 | [1] | 144 | [1] |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months | ($15) | [1] | ($4) | [1] |
[1] | Unrealized losses of 12 months or more were $1 million at December 31, 2014 and less than $1B million at December 31, 2013. | |||
[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 $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financial Instruments [Line Items] | |||
Derivative, Notional Amount | $374 | $459 | |
AOCI, Net gain (loss) in net investment in foreign operations | 15 | 27 | |
Commodity swaps futures and option contracts [Member] | |||
Financial Instruments [Line Items] | |||
Derivative, Higher Remaining Maturity Range | 72 months | 36 months | |
Commodity Forward Contract Corn [Member] | |||
Financial Instruments [Line Items] | |||
Nonmonetary notional amount of price risk cash flow hedge derivatives | 1,300,000 | 2,700,000 | |
Commodity Contract [Member] | |||
Financial Instruments [Line Items] | |||
AOCI, Net gain (loss) in cash flow hedging instruments | -96 | 14 | |
Commodity Forward Contract Crude Oil [Member] | |||
Financial Instruments [Line Items] | |||
Nonmonetary notional amount of price risk cash flow hedge derivatives | 0.5 | 0.5 | |
Commodity Forward Contract Natural Gas [Member] | |||
Financial Instruments [Line Items] | |||
Nonmonetary notional amount of price risk cash flow hedge derivatives | 192.5 | 82.9 | |
Commodity Contract Ethane [Member] | |||
Financial Instruments [Line Items] | |||
Nonmonetary notional amount of price risk cash flow hedge derivatives | 0.9 | 1 | |
Derivative, nonmonetary notional amount | 0.2 | 0.3 | |
Commodity Contract Naphtha [Member] | |||
Financial Instruments [Line Items] | |||
Nonmonetary notional amount of price risk cash flow hedge derivatives | 0 | 3,000 | |
Commodity Contract Gasoline [Member] | |||
Financial Instruments [Line Items] | |||
Derivative, nonmonetary notional amount | 15,000 | 0 | |
Commodity Contract Naphtha Price Spread [Member] | |||
Financial Instruments [Line Items] | |||
Derivative, nonmonetary notional amount | 91,000 | 0 | |
Commodity Contract Natural Gas [Member] | |||
Financial Instruments [Line Items] | |||
Derivative, nonmonetary notional amount | 0.5 | 5.2 | |
Foreign Currency Contract [Member] | |||
Financial Instruments [Line Items] | |||
Derivative, Notional Amount | 20,156 | 17,228 | |
AOCI, Net gain (loss) in cash flow hedging instruments | 31 | -11 | |
Interest Rate Contract [Member] | |||
Financial Instruments [Line Items] | |||
Derivative, Notional Amount | 0 | ||
AOCI, Net gain (loss) in cash flow hedging instruments | -8 | -3 | |
Commodity Forward Contract Soybeans [Member] | |||
Financial Instruments [Line Items] | |||
Nonmonetary notional amount of price risk cash flow hedge derivatives | 1,200,000 | 800,000 | |
Other Expense [Member] | Not Designated as Hedging Instrument [Member] | Foreign Currency Contract [Member] | |||
Financial Instruments [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -333 | 89 | -9 |
Scenario, Forecast [Member] | Commodity Contract [Member] | |||
Financial Instruments [Line Items] | |||
Price Risk Cash Flow Hedge Unrealized Gain (Loss) to be Reclassified During Next 12 Months | -64 | ||
Scenario, Forecast [Member] | Foreign Currency Contract [Member] | |||
Financial Instruments [Line Items] | |||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | 31 | ||
Scenario, Forecast [Member] | Interest Rate Contract [Member] | |||
Financial Instruments [Line Items] | |||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | -4 | ||
Interest Rate Derivative [Member] | |||
Financial Instruments [Line Items] | |||
Derivative, Notional Amount | 434 | 417 | |
Foreign Currency Denominated Debt [Member] | |||
Financial Instruments [Line Items] | |||
Nonderivative Instruments Notional | $167 | $190 |
FINANCIAL_INSTRUMENTS_Schedule
FINANCIAL INSTRUMENTS (Schedule of Fair Values of Derivative Instruments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | $122 | $79 |
Derivative liability, fair value | 281 | 44 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 29 | 13 |
Derivative liability, fair value | 118 | 19 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 93 | 66 |
Derivative liability, fair value | 163 | 25 |
Other Current Assets [Member] | Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 4 | 13 |
Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 2 | 1 |
Accounts and Notes Receivable - Other [Member] | Designated as Hedging Instrument [Member] | Foreign Currency Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 25 | 0 |
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 | 91 | 65 |
Accounts Payable - Other [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 12 | 5 |
Accounts Payable - Other [Member] | Designated as Hedging Instrument [Member] | Foreign Currency Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 0 | 9 |
Accounts Payable - Other [Member] | Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 106 | 5 |
Accounts Payable - Other [Member] | Not Designated as Hedging Instrument [Member] | Foreign Currency Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 161 | 24 |
Accounts Payable - Other [Member] | Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | $2 | $1 |
FAIR_VALUE_MEASUREMENTS_Basis_
FAIR VALUE MEASUREMENTS (Basis of Fair Value Measurements on a Recurring Basis) (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Assets at Fair Value | $0 | [1],[2] | $0 | [1],[2] |
Interest in trade accounts receivable conduits, Assets at Fair Value | 0 | [1],[3] | 0 | [1],[3] |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | -90 | [1],[4] | -20 | [1],[4] |
Assets, at Fair Value | -93 | [1] | -23 | [1] |
Long-term Debt, Liabilities at Fair Value | 0 | [1],[5] | 0 | [1],[5] |
Interest Rate Derivative Liabilities, at Fair Value | 0 | [1],[4] | 0 | [1],[4] |
Liabilities, at Fair Value | -117 | [1] | -24 | [1] |
Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Assets at Fair Value | 2,705 | [2] | 2,912 | [2] |
Interest in trade accounts receivable conduits, Assets at Fair Value | 1,328 | [3] | 1,227 | [3] |
Commodities Derivative Assets, at Fair Value | 3 | [4] | 11 | [4] |
Foreign currency Derivative, Assets at Fair Value | 26 | [4] | 45 | [4] |
Assets, at Fair Value | 6,071 | 6,251 | ||
Long-term Debt, Liabilities at Fair Value | 21,450 | [5] | 19,467 | [5] |
Interest Rate Derivative Liabilities, at Fair Value | 12 | [4] | 5 | [4] |
Commodities Derivative Liabilities, at Fair Value | 81 | [4] | 2 | [4] |
Foreign currency Derivative Liabilities, at Fair Value | 71 | [4] | 13 | [4] |
Liabilities, at Fair Value | 21,614 | 19,487 | ||
Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Marketable Securities, Assets at Fair Value | 0 | [1],[6] | 0 | [1],[6] |
Equity Securities [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Marketable Securities, Assets at Fair Value | 728 | [6] | 797 | [6] |
U.S. government and municipalities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Marketable Securities, Assets at Fair Value | 0 | [1],[6],[7] | 0 | [1],[6],[7] |
U.S. government and municipalities [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Marketable Securities, Assets at Fair Value | 584 | [6],[7] | 564 | [6],[7] |
Corporate Debt Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Marketable Securities, Assets at Fair Value | 0 | [1],[6] | 0 | [1],[6] |
Corporate Debt Securities [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Marketable Securities, Assets at Fair Value | 697 | [6] | 695 | [6] |
Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Assets at Fair Value | 0 | [2] | 0 | [2] |
Interest in trade accounts receivable conduits, Assets at Fair Value | 0 | [3] | 0 | [3] |
Commodities Derivative Assets, at Fair Value | 0 | [4] | 3 | [4] |
Foreign currency Derivative, Assets at Fair Value | 0 | [4] | 0 | [4] |
Assets, at Fair Value | 692 | 763 | ||
Long-term Debt, Liabilities at Fair Value | 0 | [5] | 0 | [5] |
Interest Rate Derivative Liabilities, at Fair Value | 0 | [4] | 0 | [4] |
Commodities Derivative Liabilities, at Fair Value | 9 | [4] | 4 | [4] |
Foreign currency Derivative Liabilities, at Fair Value | 0 | [4] | 0 | [4] |
Liabilities, at Fair Value | 9 | 4 | ||
Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Marketable Securities, Assets at Fair Value | 692 | [6] | 760 | [6] |
Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | U.S. government and municipalities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Marketable Securities, Assets at Fair Value | 0 | [6],[7] | 0 | [6],[7] |
Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | Corporate Debt Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Marketable Securities, Assets at Fair Value | 0 | [6] | 0 | [6] |
Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Assets at Fair Value | 2,705 | [2] | 2,912 | [2] |
Interest in trade accounts receivable conduits, Assets at Fair Value | 0 | [3] | 0 | [3] |
Commodities Derivative Assets, at Fair Value | 6 | [4] | 11 | [4] |
Foreign currency Derivative, Assets at Fair Value | 116 | [4] | 65 | [4] |
Assets, at Fair Value | 4,144 | 4,284 | ||
Long-term Debt, Liabilities at Fair Value | 21,450 | [5] | 19,467 | [5] |
Interest Rate Derivative Liabilities, at Fair Value | 12 | [4] | 5 | [4] |
Commodities Derivative Liabilities, at Fair Value | 99 | [4] | 2 | [4] |
Foreign currency Derivative Liabilities, at Fair Value | 161 | [4] | 33 | [4] |
Liabilities, at Fair Value | 21,722 | 19,507 | ||
Significant Other Observable Inputs (Level 2) [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Marketable Securities, Assets at Fair Value | 36 | [6] | 37 | [6] |
Significant Other Observable Inputs (Level 2) [Member] | U.S. government and municipalities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Marketable Securities, Assets at Fair Value | 584 | [6],[7] | 564 | [6],[7] |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Debt Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Marketable Securities, Assets at Fair Value | 697 | [6] | 695 | [6] |
Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Assets at Fair Value | 0 | [2] | 0 | [2] |
Interest in trade accounts receivable conduits, Assets at Fair Value | 1,328 | [3] | 1,227 | [3] |
Commodities Derivative Assets, at Fair Value | 0 | [4] | 0 | [4] |
Foreign currency Derivative, Assets at Fair Value | 0 | [4] | 0 | [4] |
Assets, at Fair Value | 1,328 | 1,227 | ||
Long-term Debt, Liabilities at Fair Value | 0 | [5] | 0 | [5] |
Interest Rate Derivative Liabilities, at Fair Value | 0 | [4] | 0 | [4] |
Commodities Derivative Liabilities, at Fair Value | 0 | [4] | 0 | [4] |
Foreign currency Derivative Liabilities, at Fair Value | 0 | [4] | 0 | [4] |
Liabilities, at Fair Value | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Marketable Securities, Assets at Fair Value | 0 | [6] | 0 | [6] |
Significant Unobservable Inputs (Level 3) [Member] | U.S. government and municipalities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Marketable Securities, Assets at Fair Value | 0 | [6],[7] | 0 | [6],[7] |
Significant Unobservable Inputs (Level 3) [Member] | Corporate Debt Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Marketable Securities, Assets at Fair Value | 0 | [6] | 0 | [6] |
Commodity [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 3 | [1],[4] | 3 | [1],[4] |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | -27 | [1],[4] | -4 | [1],[4] |
Foreign Exchange Contract [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | ($90) | [1],[4] | ($20) | [1],[4] |
[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] | Treasury Bills and money market funds 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 b Other" in the consolidated balance sheets. See NoteB 15 for additional information on transfers of financial assets. | |||
[4] | See NoteB 10 for the classification of derivatives in the consolidated balance sheets. | |||
[5] | See Note 10 for information on fair value measurements of long-term debt. | |||
[6] | The Companybs investments in equity and debt securities are primarily classified as available-for-sale and are included in bOther investmentsb in the consolidated balance sheets. | |||
[7] | U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalitiesb obligations. |
FAIR_VALUE_MEASUREMENTS_Additi
FAIR VALUE MEASUREMENTS (Additional Information) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | $29 | $5 | ||
North America and Europe [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 | 1,227 | [1] | 1,057 | [1] |
Gain Included in Earnings | 9 | [1],[2] | 0 | [1],[2] |
Purchases, fair value measurements using Level 3 inputs | 1,171 | [1] | 1,198 | [1] |
Settlements, fair value measurements using Level 3 inputs | -1,079 | [1] | -1,028 | [1] |
Balance at end of period, fair value measurements using Level 3 inputs | $1,328 | [1] | $1,227 | [1] |
[1] | Included in "Accounts and notes receivable b Other" in the consolidated balance sheets. | |||
[2] | Included in "Selling, general and administrative expenses" in the consolidated statements of income. |
FAIR_VALUE_MEASUREMENTS_FAIR_V
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Basis of Fair Value Measurements on a Nonrecurring Basis) (Details) (USD $) | 12 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | |||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Mar. 31, 2012 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $0 | $4 | $0 | $4 | |||||||||||
Goodwill, Fair Value Disclosure | 0 | 0 | 0 | ||||||||||||
Goodwill impairment loss | -50 | [1] | 0 | -220 | [1] | ||||||||||
Fair Value, Measurements, Nonrecurring [Member] | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||
Asset write-downs and write-offs | 73 | 178 | 73 | 178 | |||||||||||
Goodwill impairment loss | -220 | ||||||||||||||
Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable 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 | 127 | 45 | 127 | 45 | 45 | ||||||||||
Other Assets, Fair Value Disclosure | 12 | 12 | 12 | ||||||||||||
Equity Method Investments, Fair Value Disclosure | 33 | 33 | 33 | ||||||||||||
Performance Materials [Member] | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||
Asset write-downs and write-offs | 27 | ||||||||||||||
Polyurethanes [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||
Asset write-downs and write-offs | 693 | ||||||||||||||
Corporate Segment [Member] | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||
Asset write-downs and write-offs | 15 | ||||||||||||||
Corporate Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||
Other Assets, Fair Value Disclosure | 18 | 18 | |||||||||||||
Infrastructure Solutions [Member] | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||
Asset write-downs and write-offs | 93 | ||||||||||||||
Goodwill impairment loss | 0 | [1] | 0 | [1] | |||||||||||
Infrastructure Solutions [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||
Other Assets, Fair Value Disclosure | 100 | 100 | |||||||||||||
Performance Materials & Chemicals [Member] | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||
Asset write-downs and write-offs | 70 | ||||||||||||||
Goodwill impairment loss | 0 | [1] | -220 | [1] | -220 | ||||||||||
Performance Materials & Chemicals [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||
Other Assets, Fair Value Disclosure | 4 | 9 | 4 | 9 | |||||||||||
1Q12 Restructuring [Member] | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||
Asset write-downs and write-offs | 94 | ||||||||||||||
North America and Europe [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 1,328 | [2] | 1,227 | [2] | 1,057 | [2] | 1,328 | [2] | 1,227 | [2] | 1,057 | [2] | 1,057 | [2] | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 9 | [2],[3] | 0 | [2],[3] | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 1,171 | [2] | 1,198 | [2] | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | 1,079 | [2] | 1,028 | [2] | |||||||||||
Cost of Sales [Member] | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||
Asset write-downs and write-offs | 23 | 175 | |||||||||||||
Goodwill and other intangible asset impairment losses [Member] | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||
Asset write-downs and write-offs | 50 | ||||||||||||||
Intangible Assets, Amortization Period [Member] | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||
Asset write-downs and write-offs | $3 | ||||||||||||||
[1] | See Note 11 for information regarding intangible asset impairment losses and Note 9 for information regarding the goodwill impairment loss. | ||||||||||||||
[2] | Included in "Accounts and notes receivable b Other" in the consolidated balance sheets. | ||||||||||||||
[3] | Included in "Selling, general and administrative expenses" in the consolidated statements of income. |
SUPPLEMENTARY_INFORMATION_Sund
SUPPLEMENTARY INFORMATION (Sundry Income, Net) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2014 | Nov. 30, 2013 | |||
Supplementary Information [Line Items] | |||||||||
Total sundry income (expense) - net | ($27) | $2,554 | ($27) | ||||||
Gain on sales of other assets and securities | 40 | [1] | 98 | [1] | 81 | [1] | |||
Foreign exchange loss | -61 | -31 | -51 | ||||||
Gain (Loss) on Contract Termination | 53 | 0 | 0 | ||||||
Chlorine value chain separation costs | -49 | 0 | 0 | ||||||
Loss on early extinguishment of debt | 0 | -329 | -123 | ||||||
Reclassification of cumulative translation adjustment | -12 | 21 | 0 | ||||||
Other - net | -3 | 70 | 58 | ||||||
Contract Manufacturing Business [Member] | |||||||||
Supplementary Information [Line Items] | |||||||||
Gain (loss) on divestiture | 0 | 0 | 8 | ||||||
Performance Plastics [Member] | Polypropylene Licensing and Catalyst Busines [Member] | |||||||||
Supplementary Information [Line Items] | |||||||||
Gain (loss) on divestiture | 5 | 451 | 0 | 451 | 5 | ||||
Corporate Segment [Member] | Dow Kokam LLC [Member] | |||||||||
Supplementary Information [Line Items] | |||||||||
Gain (loss) on divestiture | 0 | 26 | [2] | 0 | 26 | ||||
Impact to Sundry income (expense) [Member] | K-Dow Matter [Member] | Positive Outcome of Litigation [Member] | Corporate Segment [Member] | |||||||||
Supplementary Information [Line Items] | |||||||||
Recognized Gain in Current Period, Former Gain Contingency | 0 | 2,161 | [3] | 0 | |||||
Freeport LNG Development, L.P. [Member] | Feedstocks and Energy [Member] | |||||||||
Supplementary Information [Line Items] | |||||||||
Cost-method Investments, Realized Gain (Loss) | $0 | $87 | $0 | ||||||
[1] | The 2013 gain on sales of other assets and investments also included a $21 million gain reported as "Reclassification of cumulative translation adjustments." | ||||||||
[2] | See Note 5 for additional information. | ||||||||
[3] | See Note 14 for additional information. |
SUPPLEMENTARY_INFORMATION_Accr
SUPPLEMENTARY INFORMATION (Accrued and other current liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accrued and other current liabilities | $2,839 | $2,916 |
Accrued and Other Current Liabilities [Member] | ||
Accrued payroll | $855 | $968 |
SUPPLEMENTARY_INFORMATION_Othe
SUPPLEMENTARY INFORMATION (Other Income Statement and Cash Flow Information) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Supplementary Information [Abstract] | ||||||
Cash payments for interest | $1,038 | $1,191 | $1,345 | |||
Cash payments for income taxes | 1,109 | 1,708 | 1,107 | |||
Provision for doubtful receivables | $52 | [1] | $59 | [1] | $13 | [1] |
[1] | Included in bSelling, general and administrative expensesb in the consolidated statements of income. |
EARNINGS_PER_SHARE_CALCULATION2
EARNINGS PER SHARE CALCULATIONS (Net Income) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Earnings Per Share [Abstract] | ||||||
Net Income Attributable to The Dow Chemical Company | $3,772 | $4,787 | $1,182 | |||
Preferred stock dividends | 340 | [1] | 340 | 340 | [1] | |
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | -27 | [2] | -38 | [2] | -13 | [2] |
Net income attributable to common stockholders | $3,405 | $4,409 | $829 | |||
[1] | Preferred stock dividends were not added back in the calculation of diluted earnings per share for the periods ended December 31, 2014 and December 31, 2012 because the effect of adding them back would have been antidilutive. | |||||
[2] | 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 $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Earnings Per Share [Abstract] | ||||||
Net income attributable to The Dow Chemical Company, basic (in dollars per share) | $3.22 | $4.04 | $1.01 | |||
Preferred stock dividends, basic (in dollars per share) | ($0.29) | ($0.29) | ($0.29) | |||
Net income attributable to participating securities, basic (in dollars per share) | ($0.02) | [1] | ($0.03) | [1] | ($0.01) | [1] |
Earnings per common share - basic (in dollars per share) | $2.91 | $3.72 | $0.71 | |||
[1] | 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 $) | 12 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Earnings Per Share [Abstract] | ||||||
Net Income (Loss) Attributable to Parent | $3,772 | $4,787 | $1,182 | |||
Dividends, Preferred Stock | -340 | [1] | -340 | -340 | [1] | |
Antidilutive Dividends, Preferred Stock | 0 | [1] | ||||
Participating Securities, Distributed and Undistributed Earnings (Loss), Diluted | -27 | [2] | -38 | [2] | -13 | [2] |
Net income attributable to common stockholders, Diluted | $3,405 | $4,749 | $829 | |||
Net income attributable to The Dow Chemical Company, diluted (in dollars per share) | $3.18 | $3.71 | $1 | |||
Preferred stock dividends, diluted (in dollars per share) | ($0.29) | [1] | $0 | [1] | ($0.29) | [1] |
Net income attributable to participating securities, diluted (in dollars per share) | ($0.02) | [2] | ($0.03) | [2] | ($0.01) | [2] |
Earnings per common share - diluted (in dollars per share) | $2.87 | $3.68 | $0.70 | |||
[1] | Preferred stock dividends were not added back in the calculation of diluted earnings per share for the periods ended December 31, 2014 and December 31, 2012 because the effect of adding them back would have been antidilutive. | |||||
[2] | 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) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Earnings Per Share Disclosure [Line Items] | ||||||
Weighted-average common shares - basic | 1,170.90 | 1,186.20 | 1,169.70 | |||
Plus dilutive effect of stock options and awards | 16.1 | 7.4 | 6.7 | |||
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock | 0 | [1] | 96.8 | [1] | 0 | [1] |
Weighted-average common shares outstanding - diluted | 1,187 | 1,290.40 | 1,176.40 | |||
Employee Stock Option [Member] | ||||||
Earnings Per Share Disclosure [Line Items] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share (shares) | 5.8 | [2] | 47.4 | [2] | 52.6 | [2] |
[1] | Conversion of the Company's Cumulative Convertible Perpetual Preferred Stock, Series A into shares of the Companybs common stock was excluded from the calculation of diluted earnings per share for the periods ended December 31, 2014 and December 31, 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. |
COMMITMENTS_AND_CONTINGENT_LIA2
COMMITMENTS AND CONTINGENT LIABILITIES (Dow Corning Credit Facility) (Narrative) (Details) (USD $) | Dec. 31, 2014 | Jun. 02, 2004 |
In Millions, unless otherwise specified | ||
Loss Contingencies [Line Items] | ||
Joint Plan credit facility | $6,470 | |
Dow Corning Corporation [Member] | ||
Loss Contingencies [Line Items] | ||
Joint Plan credit facility | 300 | |
Dow Corning Corporation [Member] | ||
Loss Contingencies [Line Items] | ||
Equity method investment, ownership percentage | 50.00% | |
Credit Facility Provided To Joint Venture Reporting Entity Share [Member] | Dow Corning Corporation [Member] | ||
Loss Contingencies [Line Items] | ||
Joint Plan credit facility | $150 |
COMMITMENTS_AND_CONTINGENT_LIA3
COMMITMENTS AND CONTINGENT LIABILITIES (Environmental Matters) (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Loss Contingencies [Line Items] | |||
Environmental Remediation Expense | $227 | $203 | $197 |
Capital expenditures for environmental protection | 78 | 102 | 145 |
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Accrued Obligations for Environmental Matters, beginning balance | 722 | 754 | |
Accrued Obligations for Environmental Matters, Additional accruals | 228 | 200 | |
Accrued Obligations for Environmental Matters, Charges against reserve | -219 | -222 | |
Accrued Obligations for Environmental Matters, Foreign currency impact | -25 | -10 | |
Accrued Obligations for Environmental Matters, ending balance | 706 | 722 | 754 |
Number of of Properties Remediated, City of Midland | 132 | ||
Accrual For Environmental Loss Contingencies Superfund Sites [Member] | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Accrued Obligations for Environmental Matters, ending balance | 78 | 73 | |
Accrual For Environmental Loss Contingencies Midland Offsite Matters [Member] | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Accrued Obligations for Environmental Matters, ending balance | $62 | $47 |
COMMITMENTS_AND_CONTINGENT_LIA4
COMMITMENTS AND CONTINGENT LIABILITIES (Asbestos-Related Matters of Union Carbide Corporation) (Table and Narrative) (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2002 | |
Loss Contingencies [Line Items] | |||||
Asbestos-related charges | $78 | [1] | $0 | $0 | |
Union Carbide Corporation [Member] | |||||
Loss Contingencies [Line Items] | |||||
Liability for asbestos claims, gross | 513 | 501 | 602 | 2,200 | |
Percentage of recorded asbestos liability related to pending claims | 22.00% | 19.00% | |||
Percentage of recorded asbestos liability related to future claims | 78.00% | 81.00% | |||
Estimated insurance recoveries | 79 | 91 | 1,350 | ||
Defense and resolution costs for asbestos related claims, net of insurance | 108 | 107 | 100 | ||
Union Carbide Corporation [Member] | Estimated Insurance Recoveries Defense And Resolution Costs [Member] | |||||
Loss Contingencies [Line Items] | |||||
Estimated insurance recoveries | 69 | 66 | |||
Union Carbide Corporation [Member] | Estimated Insurance Recoveries Carriers Without Settlement Agreements [Member] | |||||
Loss Contingencies [Line Items] | |||||
Estimated insurance recoveries | $10 | $25 | |||
[1] | See Note 14 for information regarding the asbestos-related charge. |
COMMITMENTS_AND_CONTINGENT_LIA5
COMMITMENTS AND CONTINGENT LIABILITIES (Synthetic Rubber Industry Matters) (Narrative) (Details) (Fine Issued for Butadiene Rubber and Emulsion Styrene Butadiene Rubber Business [Member]) | 1 Months Ended | 3 Months Ended | |
Nov. 30, 2006 | Nov. 30, 2006 | Dec. 31, 2006 | |
USD ($) | EUR (€) | USD ($) | |
Loss Contingencies [Line Items] | |||
Fine issued in connection with alleged violation of competition laws | $85,000,000 | € 64,575,000 | |
Loss contingency | $85,000,000 |
COMMITMENTS_AND_CONTINGENT_LIA6
COMMITMENTS AND CONTINGENT LIABILITIES (Urethane Matters) (Details) (Urethane Antitrust Litigation [Domain], USD $) | 3 Months Ended | 1 Months Ended | |
Mar. 31, 2013 | Jul. 31, 2013 | Dec. 31, 2014 | |
February 20, 2013 Urethane Matters Ruling [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Damages Awarded, Value | $400,000,000 | ||
July 26, 2013 Urethane Matters Ruling [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Damages Awarded, Value | 1,060,000,000 | ||
Loss Contingency, Range of Possible Loss, Minimum | 0 | ||
Loss Contingency, Range of Possible Loss, Maximum | $1,060,000,000 |
COMMITMENTS_AND_CONTINGENT_LIA7
COMMITMENTS AND CONTINGENT LIABILITIES (Purchase Commitments) (Table and Narrative) (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||
Unrecorded Unconditional Purchase Obligation, Change of Amount as Result of Variable Components | $700 | 700 | ||
Ethylene related products [Member] | ||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||
Purchase commitments Ethylene related products | 354 | 405 | 304 | |
Fixed and determinable portion of obligations under purchase commitments, 2015 | 2,930 | 2,930 | ||
Fixed and determinable portion of obligations under purchase commitments, 2016 | 2,688 | 2,688 | ||
Fixed and determinable portion of obligations under purchase commitments, 2017 | 2,222 | 2,222 | ||
Fixed and determinable portion of obligations under purchase commitments, 2018 | 1,981 | 1,981 | ||
Fixed and determinable portion of obligations under purchase commitments, 2019 | 1,385 | 1,385 | ||
Fixed and determinable portion of obligations under purchase commitments, 2020 and beyond | 7,305 | 7,305 | ||
Fixed and determinable portion of obligations under purchase commitments, total | 18,511 | 18,511 | ||
Long-term Purchase Commitment, Period | 31 years | |||
Materials Services and Other Items [Member] | ||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||
Other outstanding purchase commitments | $346 | 346 | ||
Freeport LNG Development, L.P. [Member] | ||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||
Limited Partnership Ownership Interest | 7.50% |
COMMITMENTS_AND_CONTINGENT_LIA8
COMMITMENTS AND CONTINGENT LIABILITIES (Guarantees) (Table and Narrative) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2012 | |
Guarantees [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Final expiration | 2021 | 2021 | ||
Guarantees, Maximum Future Payments | $5,042,000,000 | $5,074,000,000 | ||
Guarantees, Recorded Liability | 160,000,000 | 137,000,000 | ||
Residual Value Guarantees [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Final expiration | 2024 | 2021 | ||
Guarantees, Maximum Future Payments | 951,000,000 | 708,000,000 | ||
Guarantees, Recorded Liability | 123,000,000 | 27,000,000 | ||
Total Guarantees [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Guarantees, Maximum Future Payments | 5,993,000,000 | 5,782,000,000 | ||
Guarantees, Recorded Liability | 283,000,000 | 164,000,000 | ||
Railcar sale-leaseback [Member] | Residual Value Guarantees [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Guarantees, Maximum Future Payments | 229,000,000 | |||
Deferred Gain on Sale of Property | 102,000,000 | |||
Sadara [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Equity method investment, ownership percentage | 35.00% | 35.00% | 35.00% | |
Sadara [Member] | Guarantee of Indebtedness of Others [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Guarantees, Maximum Future Payments | 4,400,000,000 | |||
Sadara [Member] | Long Term Debt entered into by Equity Method Investee [Domain] | Total Project Financing [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Project Financing, Maximum Borrowing Capacity | 12,500,000,000 | |||
Project Financing, Amount Outstanding | $10,500,000,000 | $5,800,000,000 |
COMMITMENTS_AND_CONTINGENT_LIA9
COMMITMENTS AND CONTINGENT LIABILITIES (Warranties) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | |
Warranty Accrual [Roll Forward] | |||
Warranty Accrual, Balance at January 1 | $24 | $44 | |
Accruals related to existing warranties | 104 | [1] | 2 |
Settlements made during the year | -21 | -22 | |
Warranty Accrual, Balance at December 31 | 107 | 24 | |
Infrastructure Solutions [Member] | |||
Warranty Accrual [Roll Forward] | |||
Accruals related to existing warranties | $100 | [1] | |
[1] | In the fourth quarter of 2014, the Company recorded a pretax charge of $100B million for a warranty accrual adjustment related to an exited business. The charge was included in "Cost of sales" in the consolidated statements of income and reflected in Infrastructure Solutions. |
Recovered_Sheet1
COMMITMENTS AND CONTINGENT LIABILITIES (Asset Retirement Obligations) (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
countries | ||
manufacturingsites | ||
wells | ||
brinesandwells | ||
Loss Contingencies [Line Items] | ||
Conditional Asset Retirement Obligations Carrying Value | $28 | $34 |
Asset retirement obligation discount rate | 1.48% | 0.88% |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Asset retirement obligation, beginning balance | 89 | 92 |
Additional accruals | 3 | 5 |
Liabilities settled | -8 | -2 |
Accretion expense | 1 | 1 |
Revisions in estimated cash flows | 3 | -8 |
Other | -4 | 1 |
Asset retirement obligation, ending balance | $84 | $89 |
Number Of Manufacturing Sites | 201 | |
Number Of Countries With Manufacturing Sites | 35 | |
Number of underground storage wells without conditional asset retirement obligation | 44 | |
Number of underground brine, mining and other wells without conditional asset retirement obligation | 138 |
Recovered_Sheet2
COMMITMENTS AND CONTINGENT LIABILITIES (K-Dow) (Narrative) (Details) (K-Dow Matter [Member], USD $) | 0 Months Ended | ||
In Millions, unless otherwise specified | 7-May-13 | Jun. 30, 2013 | 24-May-12 |
Gain Contingencies [Line Items] | |||
Former Gain Contingency, Recognized in Current Period | $2,195 | ||
Positive Outcome of Litigation [Member] | |||
Gain Contingencies [Line Items] | |||
Gain Contingency Cash Settlement | 2,195 | ||
Gain Contingency, Unrecorded Amount | 2,161 | ||
Impact to Sundry income (expense) [Member] | Corporate Segment [Member] | Positive Outcome of Litigation [Member] | |||
Gain Contingencies [Line Items] | |||
Former Gain Contingency, Recognized in Current Period | 2,161 | ||
Cost of Sales [Member] | Corporate Segment [Member] | Positive Outcome of Litigation [Member] | |||
Gain Contingencies [Line Items] | |||
Former Gain Contingency, Recognized in Current Period | $34 |
TRANSFERS_OF_FINANCIAL_ASSETS_1
TRANSFERS OF FINANCIAL ASSETS (Sale of Trade Accounts Receivable in North America and Europe) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Tranfers of Financial Assets [Line Items] | ||||||
Interests in conduits | $1,079 | $1,028 | $2,650 | |||
North America and Europe [Member] | ||||||
Tranfers of Financial Assets [Line Items] | ||||||
Carrying value of interests held | 1,328 | 1,227 | ||||
North America and Europe [Member] | Trade Accounts Receivable [Member] | ||||||
Tranfers of Financial Assets [Line Items] | ||||||
Gain (Loss) from sale of transferred financial assets | -16 | -17 | ||||
Percentage of anticipated credit losses | 0.35% | 0.71% | ||||
Impact to carrying value, 10 percent adverse change | 1 | 1 | ||||
Impact to carrying value, 20 percent adverse change | 2 | 2 | ||||
Derecognized Assets, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together, Net Credit Losses During Period | 7 | 1 | 1 | |||
Sale of receivables | 98 | 34 | 57 | |||
Collections reinvested in revolving receivables | 26,479 | 25,864 | 25,828 | |||
Interests in conduits | 1,079 | [1] | 1,028 | [1] | 2,650 | [1] |
Delinquencies on sold receivables still outstanding | 133 | 138 | ||||
Trade accounts receivable outstanding and derecognized | 2,607 | 2,494 | ||||
Repurchase of previously sold receivables, related to a divestiture | $10 | |||||
[1] | Presented in "Operating Activities" in the consolidated statements of cash flows. |
NOTES_PAYABLE_LONGTERM_DEBT_AN2
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES (Schedule of Notes Payable) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
Notes payable to banks and other lenders | $353 | $300 |
Notes payable to related companies | 189 | 137 |
Notes payable trade | 9 | 6 |
Notes payable | $551 | $443 |
Year-end average interest rates | 4.08% | 3.23% |
NOTES_PAYABLE_LONGTERM_DEBT_AN3
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES (Schedule of Long-Term Debt) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||
Unamortized debt discount | ($350) | ($336) |
Long-term debt due within one year | -394 | -697 |
Long-Term Debt | 18,838 | 16,820 |
Maturities of Long-term Debt [Abstract] | ||
2015 | 394 | |
2016 | 1,375 | |
2017 | 778 | |
2018 | 932 | |
2019 | 2,578 | |
Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 85 | 41 |
Final Maturity 2014 [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 0 | 399 |
Average interest rate in period | 0.00% | 5.33% |
Final maturity 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 60 | 56 |
Average interest rate in period | 2.74% | 2.89% |
Final maturity 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 805 | 805 |
Average interest rate in period | 2.52% | 2.53% |
Final Maturity 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 489 | 491 |
Average interest rate in period | 5.66% | 5.65% |
Final Maturity 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 2,168 | 2,171 |
Average interest rate in period | 8.41% | 8.40% |
Final Maturity 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 567 | 570 |
Average interest rate in period | 5.44% | 5.43% |
Final Maturity 2020 and thereafter [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 12,063 | 10,029 |
Average interest rate in period | 5.16% | 5.41% |
U.S. Dollar loans, Various Rates and Maturities [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 461 | 490 |
Average interest rate in period | 1.38% | 1.44% |
Foreign Currency Loans, Various Rates and Maturities [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 1,013 | 1,140 |
Average interest rate in period | 3.01% | 3.18% |
Medium Term Notes Varying Maturities Through 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 1,528 | 1,143 |
Average interest rate in period | 3.55% | 3.76% |
Tax-exempt Bonds, Varying Maturities Through 2038 [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | $343 | $518 |
Average interest rate in period | 5.66% | 5.59% |
NOTES_PAYABLE_LONGTERM_DEBT_AN4
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES (Narrative) (Details) | 12 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 2 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 2 Months Ended | 3 Months Ended | 3 Months Ended | 1 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Apr. 05, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 16, 2014 | Nov. 14, 2012 | Nov. 14, 2012 | Nov. 14, 2012 | Sep. 16, 2014 | Sep. 16, 2014 | Sep. 16, 2014 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Jan. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2013 | Sep. 15, 2013 | Jun. 28, 2013 | Mar. 08, 2012 | Dec. 31, 2013 | Jun. 24, 2013 | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 08, 2012 | Mar. 31, 2012 | Dec. 17, 2012 | Dec. 31, 2012 | Mar. 25, 2013 | Mar. 31, 2013 | Aug. 15, 2013 | Dec. 31, 2013 | Nov. 18, 2013 | Nov. 18, 2013 | Nov. 18, 2013 | Mar. 31, 2013 | Mar. 31, 2012 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Nov. 30, 2013 |
USD ($) | USD ($) | USD ($) | Term Loan Facility [Domain] | Term Loan Facility [Domain] | $100 Million Revolving Credit Facility Effective 01/2014 Due 10/2016 [Domain] | 2011 Revolving Credit Facility [Member] | InterNotes issued [Member] | InterNotes issued [Member] | InterNotes issued [Member] | Long Term Debt Repayment-Purchase of Ethylene Facility [Member] | Inter Notes [Member] | Long Term Debt entered into by Variable Interest Entities [Member] | Long Term Debt entered into by Variable Interest Entities [Member] | Long Term Debt entered into by Variable Interest Entities [Member] | Long Term Debt Repayment - Variable Interest Entity [Member] [Domain] | Long Term Debt Repayment - Variable Interest Entity [Member] [Domain] | Public Offering [Member] | Public Offering [Member] | Three Point Zero Percent Due 2022 [Member] [Domain] | Four Point Three Seven Five Percent Due 2042 [Member] [Domain] | Three point five percent notes due October 1 2024 [Member] | Four point two five percent notes due October 1 2034 [Member] | Four point six two five percent notes due October 1 2044 [Member] | Debt [Member] | Long-term Debt [Member] | Long-term Debt [Member] | Tax-exempt bonds [Member] | Tax-exempt bonds [Member] | Tax-exempt bonds [Member] | Redemption of InterNotes [Member] | Redemption of InterNotes [Member] | Redemption of Notes [Member] | Redemption of Notes [Member] | Redemption of Notes [Member] | Redemption of Notes [Member] | Redemption of Notes [Member] | Redemption of Notes [Member] | Redemption of Notes [Member] | Redemption of Notes [Member] | Redemption of Notes [Member] | Redemption of Notes [Member] | Redemption of Notes [Member] | Redemption of Notes [Member] | Redemption of Notes [Member] | Redemption of Notes [Member] | Tender Offer of Long Term Debt [Member] | Tender Offer of Long Term Debt [Member] | Tender Offer of Long Term Debt [Member] | Corporate [Member] | Corporate [Member] | Corporate [Member] | Corporate [Member] | Corporate [Member] | Corporate [Member] | Corporate [Member] | Dow Kokam LLC [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | Redemption of Notes [Member] | USD ($) | USD ($) | USD ($) | Five point six percents due March 15, 2013 [Member] | Five point nine percent notes due February 15 2015 [Member] | Five point nine percent notes due February 15 2015 [Member] | Tax-exempt bonds due 2014 [Member] | Tax-exempt bonds due 2028 [Member] | Four point eight five percent notes due August 15, 2012 [Member] | Four point eight five percent notes due August 15, 2012 [Member] | Seven Point Six Percent Notes Due 2014 [Member] | Seven Point Six Percent Notes Due 2014 [Member] | Seven point six percent notes due May 15 2014 [Member] | Seven point six percent notes due May 15 2014 [Member] | Six point eight five percent notes due August 15 2013 [Member] | Six point eight five percent notes due August 15 2013 [Member] | USD ($) | Six percent notes due September 15 2017 [Member] | Five point seven percent notes due May 15 2018 [Member] | USD ($) | USD ($) | USD ($) | Redemption of InterNotes [Member] | Redemption of InterNotes [Member] | Redemption of Notes [Member] | Tender Offer of Long Term Debt [Member] | USD ($) | ||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||||||||||||||||||||||||||||||||||
Notes Payable Long Term Debt and Available Credit Facilities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount on Issuance | $2,000 | $2,500 | $1,250 | $1,250 | $900 | $600 | $500 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.94% | 3.24% | 2.95% | 3.00% | 4.38% | 3.50% | 4.25% | 4.63% | 5.60% | 5.90% | 4.85% | 7.60% | 7.60% | 6.85% | 6.00% | 5.70% | |||||||||||||||||||||||||||||||||||||||||
Redemption price of the principle debt amount | 108.40% | 101.80% | 109.60% | 107.80% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 6,170 | 0 | 100 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 6,470 | 300 | 100 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | 18,838 | 16,820 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Extinguishment of Debt, Amount | 209 | 142 | 1,250 | 1,250 | 1,000 | 750 | 138 | 700 | 414 | 286 | |||||||||||||||||||||||||||||||||||||||||||||||
Loss on early extinguishment of debt | 0 | 329 | 123 | 60 | 24 | 99 | 2 | 3 | 108 | 156 | |||||||||||||||||||||||||||||||||||||||||||||||
Repayments of Notes Payable | 82 | 900 | 317 | 253 | 37 | 105 | 200 | 250 | 124 | 51 | |||||||||||||||||||||||||||||||||||||||||||||||
Repayments of Long-term Debt | 747 | 4,272 | 3,988 | 75 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 2,448 | 959 | 3,347 | 390 | 447 | 281 | 367 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Line of Credit, Noncurrent | 300 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from (Repayments of) Debt | 80 | 97 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Issuance of Debt | 69 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of Debt | $346 | $119 |
NOTES_PAYABLE_LONGTERM_DEBT_AN5
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES (Schedule of Committed and Available Credit Facilities) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $6,470 |
Line of Credit Facility, Remaining Borrowing Capacity | 6,170 |
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] | |
Line of Credit Facility, Maximum Borrowing Capacity | 300 |
Line of Credit Facility, Remaining Borrowing Capacity | 0 |
$200 Million Revolving Credit Facility Due 4/2016 [Domain] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | 200 |
$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 10/2016 [Domain] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | 200 |
Line of Credit Facility, Remaining Borrowing Capacity | 200 |
$100 Million Revolving Credit Facility Due 10/2016 [Domain] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | 100 |
Line of Credit Facility, Remaining Borrowing Capacity | 100 |
$100 Million Revolving Credit Facility Effective 01/2014 Due 10/2016 [Domain] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | 100 |
Line of Credit Facility, Remaining Borrowing Capacity | $100 |
PENSION_PLANS_AND_OTHER_POSTRE2
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Pension Plans) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension contributions | $815,000,000 | $865,000,000 | $903,000,000 |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Projected Benefit Obligation | 25,539,000,000 | 22,565,000,000 | |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Accumulated Benefit Obligation | 24,281,000,000 | 21,554,000,000 | |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Fair Value of Plan Assets | 16,932,000,000 | 16,247,000,000 | |
Pension Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan expense recognized | 243,000,000 | 231,000,000 | 186,000,000 |
Defined Benefit Pension Plans, U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - benefit obligations | 4.04% | 4.92% | 4.02% |
Rate of increase in future compensation levels - benefit obligations | 4.50% | 4.50% | 4.50% |
Discount rate - net periodic costs | 4.92% | 4.02% | 4.98% |
Rate of increase in future compensation levels - net periodic costs | 4.50% | 4.50% | 4.50% |
Expected long-term rate of return on plan assets - net periodic costs | 7.82% | 7.85% | 7.83% |
2014 SOA Mortality Change [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actuarial Gain (Loss) | 479,000,000 | ||
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected pension contributions | 750,000,000 | ||
Discount rate - benefit obligations | 3.60% | 4.54% | 3.88% |
Rate of increase in future compensation levels - benefit obligations | 4.13% | 4.15% | 3.96% |
Discount rate - net periodic costs | 4.54% | 3.88% | 4.93% |
Rate of increase in future compensation levels - net periodic costs | 4.15% | 3.96% | 4.14% |
Expected long-term rate of return on plan assets - net periodic costs | 7.40% | 7.47% | 7.60% |
Defined Benefit Plan, Actuarial Gain (Loss) | 4,096,000,000 | -2,029,000,000 | |
Defined Benefit Plan, Accumulated Benefit Obligation | $26,500,000,000 | $23,800,000,000 | |
Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate Support, Bond Indices | 0.6 | ||
Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate Support, Bond Indices | 0.9 |
PENSION_PLANS_AND_OTHER_POSTRE3
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Other Postretirement Benefits) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employer Group Waiver Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial gain included in accumulated other comprehensive loss | 250 | ||
Reduction in postretirement benefit obligation | 250 | ||
Decrease in net periodic benefit costs in next twelve months | 25 | ||
United States Postretirement Benefit Plan of US Entity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | 16 | ||
Defined Benefit Plan, Effect of One Percentage Point Increase On Net Periodic Postretirement Benefit Cost | 2 | ||
Discount rate - benefit obligations | 3.68% | 4.37% | 3.67% |
Initial health care cost trend rate - benefit obligations | 7.06% | 7.45% | 7.84% |
Ultimate health care cost trend rate - benefit obligations | 5.00% | 5.00% | 5.00% |
Year ultimate trend rate to be reached - benefit obligations | 2020 | 2020 | 2019 |
Discount rate - net periodic costs | 4.37% | 3.67% | 4.66% |
Expected long-term rate of return on plan assets - net periodic costs | 0.00% | 0.00% | 1.00% |
Initial health care cost trend rate - net periodic costs | 7.45% | 7.84% | 8.28% |
Ultimate health care cost trend rate - net periodic costs | 5.00% | 5.00% | 5.00% |
Year ultimate trend rate to be reached - net periodic costs | 2020 | 2020 | 2019 |
Defined benefit plan effect of one percentage point decrease on accumulated postretirement benefit obligation | 10 | ||
Defined benefit plan effect of one percentage point decrease on net periodic postretirement benefit cost | $2 |
PENSION_PLANS_AND_OTHER_POSTRE4
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Net Periodic Benefit Cost and Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income for All Significant Plans) (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | |||
Defined Benefit Pension Plans [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Service cost | $411 | $471 | $378 | ||||
Interest cost | 1,096 | 1,012 | 1,093 | ||||
Expected return on plan assets | -1,322 | -1,248 | -1,262 | ||||
Amortization of prior service cost (credit) | 22 | 25 | 26 | ||||
Amortization of unrecognized loss | 500 | 788 | 519 | ||||
Curtailment/settlement/other | -2 | [1] | 5 | [2] | 0 | ||
Net periodic benefit cost | 705 | 1,053 | 754 | ||||
Net (gain) loss | 3,528 | -2,343 | 3,135 | ||||
Prior service credit arising during period | -500 | 0 | 0 | ||||
Amortization of prior service (cost) credit | 22 | 25 | 26 | ||||
Amortization of unrecognized loss | -498 | -793 | -519 | ||||
Total recognized in other comprehensive (income) loss | 2,508 | -3,161 | 2,590 | ||||
Total recognized in net periodic benefit cost and other comprehensive (income) loss | 3,213 | -2,108 | 3,344 | ||||
Other Postretirement Benefits [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Service cost | 14 | 19 | 17 | ||||
Interest cost | 72 | 78 | 92 | ||||
Expected return on plan assets | 0 | 0 | -1 | ||||
Amortization of prior service cost (credit) | -2 | -4 | -4 | ||||
Amortization of unrecognized loss | -14 | 4 | 1 | ||||
Curtailment/settlement/other | 0 | 0 | 9 | [3] | |||
Net periodic benefit cost | 70 | 97 | 114 | ||||
Net (gain) loss | 63 | -404 | 163 | ||||
Prior service credit arising during period | 0 | 0 | 0 | ||||
Amortization of prior service (cost) credit | -2 | -4 | -4 | ||||
Amortization of unrecognized loss | 14 | -4 | -1 | ||||
Total recognized in other comprehensive (income) loss | 79 | -404 | 166 | ||||
Total recognized in net periodic benefit cost and other comprehensive (income) loss | 149 | -307 | 280 | ||||
4Q12 Restructuring [Member] | Other Postretirement Benefits [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Curtailment/settlement/other | $9 | ||||||
[1] | The 2014 impact relates to settlements associated with the wind-up of a pension plan in The Netherlands and a pension plan in Canada. | ||||||
[2] | The 2013 impact primarily relates to settlements associated with the wind-up of a Canadian pension plan. | ||||||
[3] | Included $9 million of curtailment costs recorded in 2012 related to the 4Q12 Restructuring plan (see Note 3). |
PENSION_PLANS_AND_OTHER_POSTRE5
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Change in Projected Benefit Obligations, Plan Assets and Funded Status of All Significant Plans) (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Amortization of Net Gains (Losses) | ($744) | ||||
Defined Benefit Plan, Amortization of Net Prior Service Cost (Credit) | 29 | ||||
Defined Benefit Plan, Change in Benefit Obligations [Roll Forward] | |||||
Benefit Obligations, Beginning Balance | 25,027 | 26,840 | |||
Service cost | 411 | 471 | 378 | ||
Interest cost | 1,096 | 1,012 | 1,093 | ||
Plan participants' contributions | 21 | 17 | |||
Plan amendments (1) | -500 | [1] | 0 | ||
Actuarial changes in assumptions and experience | -4,096 | 2,029 | |||
Acquisition/divestiture/other activity | -1 | 0 | |||
Benefits paid | -1,316 | -1,322 | |||
Currency impact | -779 | 123 | |||
Termination benefits/curtailment cost/settlements | -76 | [2] | -85 | [3] | |
Benefit Obligations, Ending Balance | 27,979 | 25,027 | 26,840 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets, beginning balance | 18,827 | 17,725 | |||
Actual return on plan assets | 1,961 | 1,548 | |||
Currency impact | -593 | 85 | |||
Employer contributions | 815 | 865 | |||
Plan participants' contributions | 21 | 17 | |||
Acquisition/divestiture/other activity | -86 | -91 | |||
Benefits paid | -1,316 | -1,322 | |||
Fair value of plan assets, ending balance | 19,629 | 18,827 | 17,725 | ||
Funded status at end of year | -8,350 | -6,200 | |||
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | |||||
Noncurrent assets | 263 | 139 | |||
Current liabilities | -68 | -66 | |||
Noncurrent liabilities | -8,545 | -6,273 | |||
Net amounts recognized in the consolidated balance sheets | -8,350 | -6,200 | |||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | |||||
Net loss (gain) | 10,345 | 7,815 | |||
Prior service cost (credit) | 81 | 103 | |||
Pretax balance in AOCI at end of year | 10,426 | 7,918 | |||
Other Postretirement Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Amortization of Net Gains (Losses) | 11 | ||||
Defined Benefit Plan, Amortization of Net Prior Service Cost (Credit) | 2 | ||||
Defined Benefit Plan, Change in Benefit Obligations [Roll Forward] | |||||
Benefit Obligations, Beginning Balance | 1,742 | 2,210 | |||
Service cost | 14 | 19 | 17 | ||
Interest cost | 72 | 78 | 92 | ||
Plan participants' contributions | 0 | 0 | |||
Plan amendments (1) | 0 | 0 | |||
Actuarial changes in assumptions and experience | -63 | -401 | |||
Acquisition/divestiture/other activity | 0 | 0 | |||
Benefits paid | -169 | -156 | |||
Currency impact | -15 | -8 | |||
Termination benefits/curtailment cost/settlements | 0 | 0 | |||
Benefit Obligations, Ending Balance | 1,707 | 1,742 | 2,210 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets, beginning balance | 0 | 65 | |||
Actual return on plan assets | 0 | 0 | |||
Currency impact | 0 | 0 | |||
Employer contributions | 0 | 0 | |||
Plan participants' contributions | 0 | 0 | |||
Acquisition/divestiture/other activity | 0 | 0 | |||
Benefits paid | 0 | -65 | |||
Fair value of plan assets, ending balance | 0 | 0 | 65 | ||
Funded status at end of year | -1,707 | -1,742 | |||
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | |||||
Noncurrent assets | 0 | 0 | |||
Current liabilities | -147 | -157 | |||
Noncurrent liabilities | -1,560 | -1,585 | |||
Net amounts recognized in the consolidated balance sheets | -1,707 | -1,742 | |||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | |||||
Net loss (gain) | -176 | -253 | |||
Prior service cost (credit) | -5 | -7 | |||
Pretax balance in AOCI at end of year | ($181) | ($260) | |||
[1] | The 2014 plan amendments include a change in post-termination interest rates in the U.S. and new legislation in The Netherlands. | ||||
[2] | The 2014 impact relates to settlements associated with the wind-up of a pension plan in The Netherlands and a pension plan in Canada. | ||||
[3] | The 2013 impact primarily relates to settlements associated with the wind-up of a Canadian pension plan. |
PENSION_PLANS_AND_OTHER_POSTRE6
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Estimated Future Benefit Payments) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Defined Benefit Pension Plans [Member] | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2015 | $1,270 |
2016 | 1,284 |
2017 | 1,314 |
2018 | 1,359 |
2019 | 1,401 |
2020 through 2024 | 7,554 |
Total | 14,182 |
Other Postretirement Benefits [Member] | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2015 | 150 |
2016 | 140 |
2017 | 134 |
2018 | 133 |
2019 | 129 |
2020 through 2024 | 589 |
Total | $1,275 |
PENSION_PLANS_AND_OTHER_POSTRE7
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Plan Assets) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Assets Returned to Employer | $32 | ||
Company common stock [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $19,629 | $18,827 | $17,725 |
PENSION_PLANS_AND_OTHER_POSTRE8
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Investment Strategy and Risk Management for Plan Assets) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Target Plan Asset Allocations | 100.00% |
Equity Securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Target Plan Asset Allocations | 34.00% |
Fixed Income securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Target Plan Asset Allocations | 35.00% |
Alternative Investments [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Target Plan Asset Allocations | 30.00% |
Other investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Target Plan Asset Allocations | 1.00% |
PENSION_PLANS_AND_OTHER_POSTRE9
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Basis of Fair Value Measurements of Pension Plan Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | |||||
Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | $19,629 | $18,827 | $17,725 | ||
Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 5,404 | 5,561 | |||
Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 10,500 | 10,216 | |||
Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 3,725 | 3,050 | 2,828 | ||
Cash and Cash Equivalents [Member] | Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,014 | 1,262 | |||
Cash and Cash Equivalents [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 61 | 83 | |||
Cash and Cash Equivalents [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 953 | 1,179 | |||
Cash and Cash Equivalents [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Equity Securities [Member] | Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 7,922 | 8,151 | |||
Equity Securities [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 5,312 | 5,449 | |||
Equity Securities [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 2,578 | 2,690 | |||
Equity Securities [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 32 | 12 | 13 | ||
U.S. Equity [Member] | Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 3,448 | [1] | 3,454 | [1] | |
U.S. Equity [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 3,011 | [1] | 2,759 | [1] | |
U.S. Equity [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 428 | [1] | 695 | [1] | |
U.S. Equity [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 9 | [1] | 0 | [1] | |
Company common stock [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Non-U.S. Equity - Developed Countries [Member] | Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 3,224 | 3,138 | |||
Non-U.S. Equity - Developed Countries [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,814 | 2,014 | |||
Non-U.S. Equity - Developed Countries [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,410 | 1,122 | |||
Non-U.S. Equity - Developed Countries [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 2 | |||
Emerging Markets Equity [Member] | Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,033 | 1,232 | |||
Emerging Markets Equity [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 472 | 648 | |||
Emerging Markets Equity [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 538 | 574 | |||
Emerging Markets Equity [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 23 | 10 | |||
Convertible Bonds [Member] | Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 210 | 349 | |||
Convertible Bonds [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 15 | 23 | |||
Convertible Bonds [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 195 | 326 | |||
Convertible Bonds [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Equity Derivatives [Member] | Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 7 | -22 | |||
Equity Derivatives [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 5 | |||
Equity Derivatives [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 7 | -27 | |||
Equity Derivatives [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Fixed Income Securities [Member] | Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 6,501 | 5,622 | |||
Fixed Income Securities [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | -1 | |||
Fixed Income Securities [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 6,190 | 5,386 | |||
Fixed Income Securities [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 311 | 237 | 258 | ||
U.S. government and municipalities [Member] | Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,406 | 1,154 | |||
U.S. government and municipalities [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
U.S. government and municipalities [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,406 | 1,154 | |||
U.S. government and municipalities [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
U.S. agency and agency mortgage backed securities [Member] | Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 310 | 313 | |||
U.S. agency and agency mortgage backed securities [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
U.S. agency and agency mortgage backed securities [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 310 | 313 | |||
U.S. agency and agency mortgage backed securities [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Corporate Bonds - Investment Grade [Member] | Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,605 | 1,397 | |||
Corporate Bonds - Investment Grade [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Corporate Bonds - Investment Grade [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,605 | 1,397 | |||
Corporate Bonds - Investment Grade [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Non-U.S. Governments - Developed Countries [Member] | Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,212 | 1,075 | |||
Non-U.S. Governments - Developed Countries [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Non-U.S. Governments - Developed Countries [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,212 | 1,075 | |||
Non-U.S. Governments - Developed Countries [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Non-U.S. Corporate Bonds - Developed Countries [Member] | Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 961 | 840 | |||
Non-U.S. Corporate Bonds - Developed Countries [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Non-U.S. Corporate Bonds - Developed Countries [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 961 | 838 | |||
Non-U.S. Corporate Bonds - Developed Countries [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 2 | |||
Emerging Market Debt [Member] | Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 93 | 106 | |||
Emerging Market Debt [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Emerging Market Debt [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 93 | 106 | |||
Emerging Market Debt [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Other Asset-backed Securities [Member] | Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 106 | 128 | |||
Other Asset-backed Securities [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Other Asset-backed Securities [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 105 | 113 | |||
Other Asset-backed Securities [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1 | 15 | |||
High Yield Bonds [Member] | Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 184 | 198 | |||
High Yield Bonds [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
High Yield Bonds [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 168 | 178 | |||
High Yield Bonds [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 16 | 20 | |||
Other Fixed Income Funds [Member] | Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 593 | 443 | |||
Other Fixed Income Funds [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Other Fixed Income Funds [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 299 | 243 | |||
Other Fixed Income Funds [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 294 | 200 | |||
Fixed Income Derivatives [Member] | Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 31 | -32 | |||
Fixed Income Derivatives [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | -1 | |||
Fixed Income Derivatives [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 31 | -31 | |||
Fixed Income Derivatives [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Alternative Investments [Member] | Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 3,995 | 3,435 | |||
Alternative Investments [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 31 | 30 | |||
Alternative Investments [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 622 | 644 | |||
Alternative Investments [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 3,342 | 2,761 | 2,515 | ||
Real Estate [Member] | Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,694 | 1,401 | |||
Real Estate [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 31 | 30 | |||
Real Estate [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 36 | 33 | |||
Real Estate [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,627 | 1,338 | |||
Private Equity Funds [Member] | Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,059 | 1,017 | |||
Private Equity Funds [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Private Equity Funds [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Private Equity Funds [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,059 | 1,017 | |||
Absolute Return [Member] | Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,242 | 1,017 | |||
Absolute Return [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Absolute Return [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 586 | 611 | |||
Absolute Return [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 656 | 406 | |||
Other Investments [Member] | Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 197 | 357 | |||
Other Investments [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Other Investments [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 157 | 317 | |||
Other Investments [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | $40 | $40 | $42 | ||
[1] | (1) Includes no Company common stock. |
Recovered_Sheet3
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Fair Value Measurement of Level 3 Pension Plan Assets) (Details) (Defined Benefit Pension Plans [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Pension Plan, Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets, beginning balance | $18,827 | $17,725 |
Acquisition/divestiture/other activity | -86 | -91 |
Foreign currency impact | -593 | 85 |
Fair value of plan assets, ending balance | 19,629 | 18,827 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Pension Plan, Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets, beginning balance | 3,050 | 2,828 |
Relating to assets sold | 161 | 218 |
Relating to assets held | 173 | 34 |
Acquisition/divestiture/other activity | 394 | -31 |
Transfers into (out of) Level 3, net | -3 | -5 |
Foreign currency impact | -50 | 6 |
Fair value of plan assets, ending balance | 3,725 | 3,050 |
Equity Securities [Member] | ||
Pension Plan, Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets, ending balance | 7,922 | 8,151 |
Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Pension Plan, Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets, beginning balance | 12 | 13 |
Relating to assets sold | 0 | 0 |
Relating to assets held | -12 | 0 |
Acquisition/divestiture/other activity | 32 | 2 |
Transfers into (out of) Level 3, net | 0 | -3 |
Foreign currency impact | 0 | 0 |
Fair value of plan assets, ending balance | 32 | 12 |
Fixed Income Securities [Member] | ||
Pension Plan, Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets, ending balance | 6,501 | 5,622 |
Fixed Income Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Pension Plan, Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets, beginning balance | 237 | 258 |
Relating to assets sold | 22 | 42 |
Relating to assets held | -7 | -32 |
Acquisition/divestiture/other activity | 63 | -27 |
Transfers into (out of) Level 3, net | -3 | -2 |
Foreign currency impact | -1 | -2 |
Fair value of plan assets, ending balance | 311 | 237 |
Alternative Investments [Member] | ||
Pension Plan, Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets, ending balance | 3,995 | 3,435 |
Alternative Investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Pension Plan, Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets, beginning balance | 2,761 | 2,515 |
Relating to assets sold | 139 | 176 |
Relating to assets held | 191 | 67 |
Acquisition/divestiture/other activity | 300 | -5 |
Transfers into (out of) Level 3, net | 0 | 0 |
Foreign currency impact | -49 | 8 |
Fair value of plan assets, ending balance | 3,342 | 2,761 |
Other Investments [Member] | ||
Pension Plan, Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets, ending balance | 197 | 357 |
Other Investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Pension Plan, Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets, beginning balance | 40 | 42 |
Relating to assets sold | 0 | 0 |
Relating to assets held | 1 | -1 |
Acquisition/divestiture/other activity | -1 | -1 |
Transfers into (out of) Level 3, net | 0 | 0 |
Foreign currency impact | 0 | 0 |
Fair value of plan assets, ending balance | $40 | $40 |
LEASED_PROPERTY_Leased_Propert
LEASED PROPERTY (Leased Property) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Leases [Abstract] | |||
Leases, Rent Expense, Net | $539 | $490 | $476 |
Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Future minimum lease commitments due during 2015 | 294 | ||
Future minimum lease commitments due during 2016 | 275 | ||
Future minimum lease commitments due during 2017 | 241 | ||
Future minimum lease commitments due during 2018 | 199 | ||
Future minimum lease commitments due during 2019 | 188 | ||
Future minimum lease commitments due during 2020 and thereafter | 1,837 | ||
Total future minimum operating lease commitments | $3,034 |
VARIABLE_INTEREST_ENTITIES_Sch
VARIABLE INTEREST ENTITIES (Schedule of Consolidated Variable Interest Entities, Carrying Amounts of Assets and Liabilities) (Details) (USD $) | 12 Months Ended | |||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 02, 2012 | Jan. 02, 2014 | ||
Variable Interest Entity [Line Items] | ||||||||
Repayments of Long-term Debt | $747 | $4,272 | $3,988 | |||||
Payments to Acquire Additional Interest in Subsidiaries | 60 | 0 | 0 | |||||
Cash and cash equivalents | 5,654 | 5,940 | 4,318 | 5,444 | ||||
Current assets | 24,267 | 24,977 | ||||||
Property | 18,051 | 17,454 | 17,520 | |||||
Other noncurrent assets | 621 | 501 | ||||||
Total Assets | 68,796 | 69,501 | 69,605 | |||||
Current liabilities | 11,593 | 11,971 | ||||||
Long-Term Debt | 18,838 | 16,820 | ||||||
Other noncurrent liabilities | 3,290 | 3,302 | ||||||
Long-Term Debt Nonrecourse | 1,229 | 1,360 | ||||||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Number of Joint Ventures | 8 | |||||||
Cash and cash equivalents | 190 | [1] | 147 | [1] | ||||
Current assets | 175 | 143 | ||||||
Property | 2,726 | 2,646 | ||||||
Other noncurrent assets | 85 | 105 | ||||||
Total Assets | 3,176 | [2] | 3,041 | [2] | ||||
Current liabilities | 394 | 664 | ||||||
Long-Term Debt | 1,260 | 1,392 | ||||||
Other noncurrent liabilities | 62 | 69 | ||||||
Total liabilities | 1,716 | 2,125 | ||||||
Current liabilities, nonrecourse | 391 | 318 | ||||||
Long-Term Debt Nonrecourse | 1,229 | 1,360 | ||||||
Other Nonrecourse Liabilities Noncurrent | 62 | 69 | ||||||
Variable Interest in Midwest US Ag Joint Venture [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 49.00% | |||||||
Netherlands Owner Trust [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
VariableInterestEntityLeaseExpirationPurchaseAmount | 406 | |||||||
Repayments of Long-term Debt | 346 | |||||||
Payments to Acquire Additional Interest in Subsidiaries | 60 | |||||||
Variable Interest Entities Used to Monetize Accounts Receivable [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Current assets | 99 | 105 | ||||||
Current liabilities | 1 | 0 | ||||||
Current Assets Restricted To Consolidated Variable Interest Entities | 0 | 0 | ||||||
Current liabilities, nonrecourse | 0 | 0 | ||||||
Restricted For Construction Of Manufacturing Facility [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Cash and cash equivalents | $20 | $1 | ||||||
[1] | Included $20 million at DecemberB 31, 2014 ($1 million at DecemberB 31, 2013) specifically restricted for the construction, debt servicing and operational expenses of a manufacturing facility. | |||||||
[2] | All assets were restricted at DecemberB 31, 2014 and DecemberB 31, 2013. |
VARIABLE_INTEREST_ENTITIES_Non
VARIABLE INTEREST ENTITIES (Nonconsolidated Variable Interest Entity) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Variable Interest Entity [Line Items] | |||
Investment in nonconsolidated affiliates | $4,201 | $4,501 | $4,121 |
Crude Acrylic Acid Joint Venture [Member] | |||
Variable Interest Entity [Line Items] | |||
Investment in nonconsolidated affiliates | $162 | $159 |
STOCKBASED_COMPENSATION_Accoun
STOCK-BASED COMPENSATION (Accounting for Stock-Based Compensation) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Dividends declared on common stock (Per share) | $0.37 | $1.53 | $1.28 | $1.21 | |
Dividend yield | 3.08% | 3.89% | 3.34% | ||
Expected volatility | 28.11% | 29.93% | 38.39% | ||
Risk-free interest rate | 1.11% | 1.08% | 0.95% | ||
Dividend yield blend of current declared dividend as a percentage of the stock price | 10.00% | ||||
Dividend Paid Per Share | $0.32 | $0.32 | |||
Dividend yield blend of current declared dividend as a percentage of a ten year dividend yield | 90.00% | ||||
Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected life of award | 7.7 | 7.8 | 7.6 | ||
Employees' Stock Purchase Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected life of award | 6 | 5 | 6 |
STOCKBASED_COMPENSATION_Employ
STOCK-BASED COMPENSATION (Employees' Stock Purchase Plan) (Details) (USD $) | 12 Months Ended | |||||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Outstanding, shares, ending balance | 16 | |||||
Employees' Stock Purchase Plan [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% | |||||
Plan price of the stock is set a no less than the following percentage of market price | 85.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Granted, shares | 3,634 | |||||
Granted, exercise price | $38.13 | |||||
Exercised, shares | -3,615 | |||||
Exercised, exercise price | $38.13 | |||||
Forfeited/Expired, shares | -3 | |||||
Forfeited/Expired, exercise price | $38.13 | |||||
Weighted-average fair value per share of purchase rights granted | $5.45 | $7.20 | $8.32 | |||
Total Compensation Expense | $20 | $60 | $79 | |||
Stock-based compensation expense related tax benefit | 7 | 22 | 29 | |||
Total amount of cash received from the exercise of purchase rights | 138 | 198 | 166 | |||
Total intrinsic value of purchase rights exercised | 42 | [1] | 68 | [1] | 41 | [1] |
Total intrinsic value of purchase rights exercised, related tax benefit | $15 | $25 | $15 | |||
[1] | Difference between the market price at exercise and the price paid by the employee to exercise the purchase rights. |
STOCKBASED_COMPENSATION_Stock_
STOCK-BASED COMPENSATION (Stock Option Plans) (Details) (USD $) | 12 Months Ended | |||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Y | ||||||
Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Weighted-average fair value per share of options granted | $11.49 | $6.99 | $9.38 | |||
Total Compensation Expense | $65 | $101 | $106 | |||
Stock-based compensation expense related tax benefit | 24 | 37 | 39 | |||
Total amount of cash received from the exercise of options | 810 | 188 | 137 | |||
Total intrinsic value of options exercised | 300 | [1] | 102 | [1] | 64 | [1] |
Options exercised related tax benefit | 111 | 38 | 24 | |||
Unrecognized Compensation Cost | 40 | |||||
Employee Service Share-based Compensation, Nonvested, Total Compensation Cost not yet recognized and period for recognition in years | 0.68 | |||||
Maximum term by share based compensation after vesting | 10 years | |||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Maximum term by share based compensation after vesting | 10 years | |||||
Deferred Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Total Compensation Expense | 99 | 104 | 129 | |||
Stock-based compensation expense related tax benefit | 37 | 39 | 48 | |||
Unrecognized Compensation Cost | 87 | |||||
Employee Service Share-based Compensation, Nonvested, Total Compensation Cost not yet recognized and period for recognition in years | 0.86 | |||||
2012 Stock Incentive Plan [Member] | Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 62,725,432 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Outstanding, shares, beginning balance | 76,298,000 | |||||
Outstanding, exercise price, beginning balance | $35.93 | [2] | ||||
Granted, shares | 3,152,000 | |||||
Granted, exercise price | $46.71 | [2] | ||||
Exercised, shares | -23,951,000 | |||||
Exercised, exercise price | $36.60 | [2] | ||||
Forfeited/Expired, shares | -1,852,000 | |||||
Forfeited/Expired, exercise price | $41.96 | [2] | ||||
Outstanding, shares, ending balance | 53,647,000 | |||||
Outstanding, exercise price, ending balance | $36.05 | [2] | ||||
Remaining contractual life in years | 5.51 | [2] | ||||
Aggregate intrinsic value in millions | 544 | |||||
Options exercisable at end of period, shares | 35,330,000 | |||||
Options exercisable at end of year, weighted average exercise price | $36.57 | [2] | ||||
Options exercisable at end of year, weighted average remaining contractual term (years) | 4.28 | [2] | ||||
Option exercisable aggregate intrinsic value in millions | $348 | |||||
Minimum [Member] | Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||||
Minimum [Member] | Deferred Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||||
Vested Award but not issued as of period end and expected date of issuance | 1 year | |||||
Maximum [Member] | Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||
Maximum [Member] | Deferred Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||
Vested Award but not issued as of period end and expected date of issuance | 3 years | |||||
[1] | Difference between the market price at exercise and the price paid by the employee to exercise the options. | |||||
[2] | Weighted-average per share |
STOCKBASED_COMPENSATION_Deferr
STOCK-BASED COMPENSATION (Deferred and Restricted Stock) (Details) (USD $) | 12 Months Ended | |||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Y | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Outstanding, shares, ending balance | 16,000 | |||||
Nonvested Performance Deferred Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Outstanding, shares, beginning balance | 2,504,000 | [1] | ||||
Nonvested, weighted average grant date fair value per share, beginning of period | $33.03 | [2] | ||||
Granted, shares | 2,425,000 | [1] | ||||
Weighted-average grant date fair value per share, granted | $46.72 | [2] | ||||
Vested, shares | -1,185,000 | [1],[3] | ||||
Weighted-average fair value per share of deferred stock granted vested | $34 | [2],[3] | ||||
Canceled, shares | -24,000 | [1] | ||||
Weighted average grant date fair value per share, canceled | $38.60 | [2] | ||||
Outstanding, shares, ending balance | 3,720,000 | [1] | ||||
Nonvested, weighted average grant date fair value per share, end of period | $41.61 | [2] | ||||
Deferred Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized Compensation Cost | $87 | |||||
Employee Service Share-based Compensation, Nonvested, Total Compensation Cost not yet recognized and period for recognition in years | 0.86 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested But Not Issued | 44,941 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Outstanding, shares, beginning balance | 10,588,000 | |||||
Nonvested, weighted average grant date fair value per share, beginning of period | $34.38 | [2] | ||||
Granted, shares | 2,344,000 | |||||
Weighted-average grant date fair value per share, granted | $46.88 | [2] | $32.13 | $33.81 | ||
Vested, shares | -3,311,000 | |||||
Weighted-average fair value per share of deferred stock granted vested | $37.32 | [2] | ||||
Canceled, shares | -269,000 | |||||
Weighted average grant date fair value per share, canceled | $35.34 | [2] | ||||
Outstanding, shares, ending balance | 9,352,000 | 10,588,000 | ||||
Nonvested, weighted average grant date fair value per share, end of period | $36.45 | [2] | $34.38 | [2] | ||
Total fair value of deferred stock vested and delivered | 156 | [4] | 137 | [4] | 252 | [4] |
Total fair value of deferred stock vested and delivered, related tax benefit | 58 | 51 | 93 | |||
Total Compensation Expense | 99 | 104 | 129 | |||
Stock-based compensation expense related tax benefit | 37 | 39 | 48 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested But Not Issued, Weighted Average Grant Date Fair Value | $36.52 | |||||
Performance Deferred Stock Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized Compensation Cost | 63 | |||||
Employee Service Share-based Compensation, Nonvested, Total Compensation Cost not yet recognized and period for recognition in years | 0.9 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Total fair value of deferred stock vested and delivered | 12 | [4] | 14 | [4] | 68 | [4] |
Employee Service Share-based Compensation, Tax Benefit Realized from Vesting of Performance Deferred Stock Awards | 5 | 5 | 25 | |||
Total Compensation Expense | 67 | 62 | 21 | |||
Stock-based compensation expense related tax benefit | 25 | 23 | 8 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 100,000 | [5] | 200,000 | [5] | 1,000,000 | [5] |
Employee Service Share-based Compensation, Cash Flow Effect, Cash Used to Settle Awards | $6 | [6] | $6 | [6] | $34 | [6] |
Performance Deferred Stock vested and not issued [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share based compensation arrangement by share based payment award number of shares vested and not issued | 800,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Weighted-average fair value per share of deferred stock granted vested | $34 | |||||
Non-Employee Directors' Stock Incentive Plan 2012 [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Nonvested, weighted average grant date fair value per share, end of period | $48.98 | |||||
Deferred Compensation Arrangement with Individual, Shares Issued | 24,840 | |||||
Maximum [Member] | Deferred Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vested Award but not issued as of period end and expected date of issuance | 3 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||
Maximum [Member] | Performance Deferred Stock Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||
Minimum [Member] | Deferred Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vested Award but not issued as of period end and expected date of issuance | 1 year | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||||
Minimum [Member] | Performance Deferred Stock Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||||
January 1, 2014 - December 31, 2016 [Member] | Performance Deferred Stock Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Actual number of shares granted above target minimum range | 0.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Granted, shares | 2,425,000 | [1] | ||||
Weighted-average grant date fair value per share, granted | $46.72 | [7] | ||||
Actual number of shares granted above target maximum range | 200.00% | |||||
January 1, 2013 - December 31, 2015 [Member] | Performance Deferred Stock Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Actual number of shares granted above target minimum range | 0.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Granted, shares | 1,321,000 | [1] | ||||
Weighted-average grant date fair value per share, granted | $32.16 | [7] | ||||
Actual number of shares granted above target maximum range | 250.00% | |||||
January 1, 2012 - December 31, 2014 [Member] | Performance Deferred Stock Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Actual number of shares granted above target minimum range | 0.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Granted, shares | 1,205,000 | [1] | ||||
Weighted-average grant date fair value per share, granted | $34 | [7] | ||||
Actual number of shares granted above target maximum range | 250.00% | |||||
[1] | At the end of the performance period, the actual number of shares issued can range from zero to 250 percent of the target shares granted in the 2012 and 2013 grant years, and zero to 200 percent of target shares granted in the 2014 grant year. | |||||
[2] | Weighted-average per share | |||||
[3] | Vested shares for the 2012 - 2014 performance period that were earned (i.e., performance conditions were satisfied and the target shares granted for the performance period vested) during the applicable fiscal year. Shares earned will be delivered in February 2015 at the applicable pay-out percentage. Certain executive employees may opt to receive a cash payment equal to the value of the stock award on the date of delivery. | |||||
[4] | Includes the fair value of shares vested in prior years and delivered in the reporting year. | |||||
[5] | Performance deferred stock awards vested in prior years and delivered in the reporting year. | |||||
[6] | Cash paid to certain employees for performance deferred stock awards vested in prior periods and delivered in the reporting year, equal to the value of the stock award on the date of delivery. | |||||
[7] | Weighted-average per share. |
STOCKHOLDERS_EQUITY_Narrative_
STOCKHOLDERS' EQUITY (Narrative) (Details) (USD $) | 12 Months Ended | 9 Months Ended | 1 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2009 | Apr. 30, 2009 |
Class of Stock [Line Items] | |||||
Shares of common stock for each share of preferred stock | 24.201 | ||||
Convertible Preferred Stock Term of Conversion Share Price | 53.72 | ||||
Undistributed earnings of nonconsolidated affiliates | 2,703 | 2,563 | |||
Employee Stock Ownership Plan (ESOP), Debt Structure, Direct Loan, Amount | 37 | 44 | |||
Common Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Common shares issued under ESPP | 21,200,000 | 18,300,000 | 18,700,000 | ||
Series A [Member] | |||||
Class of Stock [Line Items] | |||||
Preferred stock dividend rate | 8.50% | ||||
Rate which will be paid on past due preferred stock | 10.00% | ||||
Ongoing dividends | 85 | ||||
Berkshire Hathaway [Member] | Series A [Member] | |||||
Class of Stock [Line Items] | |||||
Stock Issued During Period, Shares, New Issues | 3,000,000 | ||||
Value of shares issued | 3,000 | ||||
Kuwait Investment Authority [Member] | Series A [Member] | |||||
Class of Stock [Line Items] | |||||
Stock Issued During Period, Shares, New Issues | 1,000,000 | ||||
Value of shares issued | $1,000 |
STOCKHOLDERS_EQUITY_Employee_S
STOCKHOLDERS' EQUITY (Employee Stock Ownership Plan) (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2009 | Apr. 02, 2009 |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Debt of ESOP | $37 | $44 | |||
Dow ESOP [Member] | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Employee Stock Ownership Plan (ESOP), Shares in ESOP | 35 | ||||
ESOP, compensation expense | 163 | 132 | 107 | ||
Shares allocated to participants' accounts | 15 | ||||
Number of released, but unallocated, shares | 1.8 | ||||
Number of unearned shares | 18.2 | ||||
Fair value of unearned shares | 831 | ||||
Rohm And Haas [Member] | Rohm and Haas ESOP [Member] | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Debt of ESOP | $78 | ||||
Interest rate on debt of ESOP | 9.80% |
STOCKHOLDERS_EQUITY_Treasury_S
STOCKHOLDERS' EQUITY (Treasury Stock) (Details) (USD $) | 12 Months Ended | ||||
In Billions, except Share data in Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 29, 2014 | Nov. 12, 2014 |
Equity, Class of Treasury Stock [Line Items] | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $5 | ||||
Treasury Stock, Shares, Acquired | 84.1 | 8.2 | |||
Shares repurchased to pay tax obligations (in shares) | 0 | ||||
Shares issued under option and purchase plans (in shares) | 7.1 | 0 | 0 | ||
Common Stock [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | 9.5 | 1.5 | |||
January 2014 Additional Authorization [Member] | Common Stock [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | 3 | ||||
November 2014 Additional Authorization [Member] | Common Stock [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $5 |
INCOME_TAXES_Narrative_Details
INCOME TAXES (Narrative) (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Income Tax Note [Line Items] | |||||
Operating loss carryforwards | $11,080 | $11,435 | |||
Tax credit carryforwards, net of uncertain tax positions | 130 | 124 | |||
Undistributed earnings | 18,037 | 16,139 | 14,504 | ||
Valuation allowance, deferred tax assets | 1,106 | [1] | 1,112 | [1] | |
Effective tax rate | 27.10% | 29.20% | 33.90% | ||
Expiration 2014 through 2018 [Member] | |||||
Income Tax Note [Line Items] | |||||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 1,520 | ||||
Tax credit carryforwards, net of uncertain tax positions | $22 | ||||
[1] | Included in current deferred tax assets are prepaid tax assets totaling $358B million in 2014 and $205B million in 2013. |
INCOME_TAXES_Schedule_of_Domes
INCOME TAXES (Schedule of Domestic and Foreign Components of Income Before Income Taxes) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2014 | Jun. 30, 2013 | ||
Income Tax Note [Line Items] | ||||||||
Income Before Income Taxes, Domestic | $1,652 | $3,979 | [1] | ($401) | [2] | |||
Income Before Income Taxes, Foreign | 3,613 | 2,825 | 2,066 | |||||
Income Before Income Taxes | 5,265 | 6,804 | 1,665 | |||||
Performance Plastics [Member] | Polypropylene Licensing and Catalyst Busines [Member] | ||||||||
Income Tax Note [Line Items] | ||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 5 | 451 | 0 | 451 | 5 | |||
K-Dow Matter [Member] | ||||||||
Income Tax Note [Line Items] | ||||||||
Former Gain Contingency, Recognized in Current Period | $2,195 | |||||||
[1] | In 2013, the domestic component of "Income Before Income Taxes" included a gain of $2.195 billion related to the K-Dow arbitration and a $451 million gain related to the sale of Dow's Polypropylene Licensing and Catalysts business. | |||||||
[2] | In 2012, the domestic component of "Income Before Income Taxes" was significantly impacted by the Company's 1Q12 and 4Q12 restructuring charges. |
INCOME_TAXES_Schedule_of_Provi
INCOME TAXES (Schedule of Provision (Credit) for Income Taxes) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
Federal, current | ($161) | [1] | $805 | $241 |
State and local, current | -4 | 42 | 9 | |
Foreign, current | 1,125 | 1,028 | 780 | |
Total, current | 960 | 1,875 | 1,030 | |
Federal, deferred | 442 | [1] | 278 | -312 |
State and local, deferred | 43 | -73 | -10 | |
Foreign, deferred | -19 | -92 | -143 | |
Total, deferred | 466 | 113 | -465 | |
Federal | 281 | [1] | 1,083 | -71 |
State and local | 39 | -31 | -1 | |
Foreign | 1,106 | 936 | 637 | |
Total tax provision | $1,426 | $1,988 | $565 | |
[1] | Reflects the 2014 impact of accelerated deductions. |
INCOME_TAXES_Reconciliation_to
INCOME TAXES (Reconciliation to U.S. Statutory Rate) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Income Tax Note [Line Items] | ||||||
Taxes at U.S. statutory rate | $1,843 | $2,381 | $583 | |||
Equity earnings effect | 307 | 276 | 115 | |||
Foreign income taxed at rates other than 35% | -195 | [1] | -76 | [1] | -76 | [1] |
U.S. tax effect of foreign earnings and dividends | 54 | 102 | 13 | |||
Goodwill impairment losses | 0 | 0 | 77 | |||
Discrete equity earnings, tax reconciliation | 26 | [2] | 0 | [2] | 48 | [2] |
Change in permanent reinvestment assertion, tax reconciliation | 0 | 0 | -236 | |||
Change in valuation allowances | 33 | -197 | 135 | |||
Unrecognized tax benefits | -30 | 243 | 122 | |||
Federal tax accrual adjustments | -3 | 29 | 4 | |||
Income Tax Reconciliation, Litigation | -212 | [3] | ||||
Other - net | 5 | -6 | 10 | |||
Total tax provision | 1,426 | 1,988 | 565 | |||
Effective tax rate | 27.10% | 29.20% | 33.90% | |||
K-Dow Matter [Member] | ||||||
Income Tax Note [Line Items] | ||||||
Income Tax Reconciliation, Litigation | $0 | [3] | $0 | [3] | ||
[1] | Includes the tax provision for statutory taxable income in foreign jurisdictions for which there is no corresponding amount in bIncome Before Income Taxes.b | |||||
[2] | Includes nonrecurring charges related to equity in earnings of nonconsolidated affiliates. | |||||
[3] | In 2013, the K-Dow arbitration award generated a tax rate benefit of $212 million due to the tax treatment of certain components of the award. See Note 14 for further information. |
INCOME_TAXES_Schedule_of_Defer
INCOME TAXES (Schedule of Deferred Tax Balances) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Income Tax Note [Line Items] | ||||
Property, deferred tax assets | $63 | [1] | $62 | [1] |
Tax loss and credit carryforwards, deferred tax assets | 1,843 | [1] | 2,012 | [1] |
Postretirement benefit obligations, deferred tax assets | 4,526 | [1] | 3,619 | [1] |
Other accruals and reserves, deferred tax assets | 1,213 | [1],[2] | 1,901 | [1] |
Intangibles, deferred tax assets | 217 | [1] | 113 | [1] |
Inventory, deferred tax assets | 412 | [1] | 217 | [1] |
Long-term debt, deferred tax assets | 0 | [1] | 0 | [1] |
Investments, deferred tax assets | 103 | [1] | 137 | [1] |
Other - net, deferred tax assets | 999 | [1] | 1,143 | [1] |
Subtotal, deferred tax assets | 9,376 | [1] | 9,204 | [1] |
Valuation allowances, deferred tax assets | -1,106 | [1] | -1,112 | [1] |
Total, deferred tax assets | 8,270 | [1] | 8,092 | [1] |
Prepaid tax assets, deferred tax assets | 358 | 205 | ||
Property, deferred tax liabilities | 2,005 | 2,165 | ||
Postretirement benefit obligations, deferred tax liabilities | 1,220 | 1,150 | ||
Other accruals and reserves, deferred tax liabilities | 411 | [2] | 392 | |
Intangibles, deferred tax liabilities | 691 | 827 | ||
Inventory, deferred tax liabilities | 177 | 197 | ||
Long-term debt, deferred tax liabilities | 673 | 600 | ||
Investments, deferred tax liabilities | 102 | 111 | ||
Other - net, deferred tax liabilities | 771 | 794 | ||
Total, deferred tax liabilities | $6,050 | $6,236 | ||
[1] | Included in current deferred tax assets are prepaid tax assets totaling $358B million in 2014 and $205B million in 2013. | |||
[2] | The reduction in deferred tax assets in 2014 reflects the impact of accelerated deductions. |
INCOME_TAXES_Uncertain_Tax_Pos
INCOME TAXES (Uncertain Tax Position) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Total Gross Unrecognized Tax Benefits [Roll Forward] | |||
Gross unrecognized tax benefits, beginning balance | $266 | $409 | $339 |
Increases related to positions taken on items from prior years | 42 | 385 | 66 |
Decreases related to positions taken on items from prior years | -57 | -137 | -32 |
Increases related to positions taken in the current year | 10 | 10 | 53 |
Settlement of uncertain tax positions with tax authorities | -13 | -393 | -9 |
Decreases due to expiration of statutes of limitations | -8 | -8 | -8 |
Gross unrecognized tax benefits, ending balance | 240 | 266 | 409 |
Unrecognized tax benefits that would impact effective tax rate | 233 | 257 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 15 | -71 | 92 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 109 | 81 | |
Argentina [Member] | |||
Income Tax Contingency [Line Items] | |||
Earliest open year | 2007 | 2007 | |
Brazil [Member] | |||
Income Tax Contingency [Line Items] | |||
Earliest open year | 2008 | 2009 | |
Canada [Member] | |||
Income Tax Contingency [Line Items] | |||
Earliest open year | 2010 | 2009 | |
France [Member] | |||
Income Tax Contingency [Line Items] | |||
Earliest open year | 2012 | 2011 | |
Germany [Member] | |||
Income Tax Contingency [Line Items] | |||
Earliest open year | 2006 | 2006 | |
Italy [Member] | |||
Income Tax Contingency [Line Items] | |||
Earliest open year | 2009 | 2008 | |
The Netherlands [Member] | |||
Income Tax Contingency [Line Items] | |||
Earliest open year | 2013 | 2012 | |
Spain [Member] | |||
Income Tax Contingency [Line Items] | |||
Earliest open year | 2009 | 2008 | |
Switzerland [Member] | |||
Income Tax Contingency [Line Items] | |||
Earliest open year | 2011 | 2009 | |
United Kingdom [Member] | |||
Income Tax Contingency [Line Items] | |||
Earliest open year | 2012 | 2011 | |
Federal Income Tax [Member] | |||
Income Tax Contingency [Line Items] | |||
Earliest open year | 2004 | 2004 | |
State and Local Income Tax [Member] | |||
Income Tax Contingency [Line Items] | |||
Earliest open year | 2004 | 2004 | |
Non-Income Tax Contingencies Related To Issues In US And Foreign Locations [Member] | |||
Income Tax Contingency [Line Items] | |||
Loss Contingency, Estimate of Possible Loss | 93 | 105 | |
Provision (credit) for income taxes [Member] | |||
Income Tax Contingency [Line Items] | |||
Tax charge related to adjusted uncertain tax position | 276 | ||
Minimum [Member] | |||
Income Tax Contingency [Line Items] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 60 | ||
Maximum [Member] | |||
Income Tax Contingency [Line Items] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | ($135) |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) (USD $) | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Stockholders' Equity Attributable to Parent | $22,423 | $26,898 | |||||
Accumulated Unrealized Gain (Loss) on Investments [Member] | |||||||
Stockholders' Equity Attributable to Parent | 141 | 160 | 147 | 78 | |||
Net change in unrealized gains (net of tax of $22, $25, $29) | 41 | 55 | 84 | ||||
Accumulated Translation Adjustment [Member] | |||||||
Stockholders' Equity Attributable to Parent | -751 | 476 | 328 | 72 | |||
Translation adjustments (net of tax of $28, $(6), $97) | -1,239 | 169 | 256 | ||||
Accumulated Pension and Other Postretirement Benefit Plans Adjustments [Member] | |||||||
Stockholders' Equity Attributable to Parent | -7,321 | -5,460 | -7,995 | -6,134 | |||
Net gain (loss) arising during period (net of tax of $(1,228), $876, $(1,037)) | -2,516 | [1] | 1,984 | [1] | -2,222 | [1] | |
Prior service credit arising during period (net of tax of $185, $1, $-) | 315 | [1] | 5 | [1] | 0 | [1] | |
Amortization of prior service cost included in net periodic pension costs (net of tax of $6, $6, $7) | 14 | [1] | 15 | [1] | 15 | [1] | |
Amortization of net loss included in net periodic pension costs (net of tax of $158, 266, $174) | 326 | [1] | 531 | [1] | 346 | [1] | |
Accumulated Derivative Gain (Loss) [Member] | |||||||
Stockholders' Equity Attributable to Parent | -86 | -3 | 4 | -12 | |||
Net hedging results (net of tax of $(25), $5, $(9)) | -91 | 10 | -7 | ||||
Accumulated Other Comprehensive Loss [Member] | |||||||
Stockholders' Equity Attributable to Parent | -8,017 | -4,827 | -7,516 | -5,996 | |||
Sales [Member] | Accumulated Unrealized Gain (Loss) on Investments [Member] | |||||||
Unrealized Gains, Reclassification to earnings | -59 | [2] | -42 | [2] | -13 | [2] | |
Impact to Sundry income (expense) [Member] | Accumulated Unrealized Gain (Loss) on Investments [Member] | |||||||
Unrealized Gains, Reclassification to earnings | -1 | [2] | 0 | [2] | -2 | [2] | |
Impact to Sundry income (expense) [Member] | Accumulated Translation Adjustment [Member] | |||||||
Reclassification to earnings - Sundry income (expense) - net | 12 | [3] | -21 | [3] | 0 | [3] | |
Cost of Sales [Member] | Accumulated Derivative Gain (Loss) [Member] | |||||||
Reclassification to earnings - Cost of sales (net of tax of $2, $(8), $13) | $8 | [2] | ($17) | [2] | $23 | [2],[4] | |
[1] | See Note 17 for additional information. | ||||||
[2] | Tax amounts are included in "Provision for income taxes" in the consolidated statements of income. | ||||||
[3] | In 2014, reclassification resulted from the liquidation and divestiture of subsidiaries. In 2013, reclassification resulted from the divestiture of a nonconsolidated affiliate. | ||||||
[4] | Accumulated Derivative Gain (Loss) for 2012 was presented in accordance with ASU 2013-02. |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Other (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $22 | $25 | $29 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | -1 | 0 | -1 |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 28 | -6 | 97 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Tax | -1,228 | 876 | -1,037 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Net Prior Service Cost (Credit), Tax | 185 | 1 | 0 |
Other Comprehensive Income (Loss), Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service (Cost) Credit, Tax | 6 | 6 | 7 |
Other comprehensive income amortization of net loss included in net periodic pension costs, tax | 158 | 266 | 174 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | -25 | 5 | -9 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | 2 | -8 | 13 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | ($32) | ($20) | ($8) |
NONCONTROLLING_INTERESTS_Nonco2
NONCONTROLLING INTERESTS Noncontrolling Interests (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Noncontrolling Interest [Line Items] | ||||||
Other Significant Noncash Transaction, Value of Consideration Given | $0 | $0 | $97 | |||
Stockholders' Equity Attributable to Noncontrolling Interest | 1,026 | |||||
Net Income (Loss) Attributable to Noncontrolling Interest | 67 | 29 | -82 | |||
Stockholders' Equity Attributable to Noncontrolling Interest, Ending | 931 | 1,026 | ||||
Noncontrolling Interest [Member] | ||||||
Noncontrolling Interest [Line Items] | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 1,026 | 990 | 1,010 | |||
Net Income (Loss) Attributable to Noncontrolling Interest | 67 | 29 | -82 | |||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | -64 | [1] | -55 | [1] | -73 | [1] |
Capital Contribution (noncash - 2014: $-; 2013: $-; 2012: $97) | 36 | 58 | 97 | |||
Consolidation of variable interest entity | 0 | [2] | 0 | [2] | 37 | [2] |
Purchase of noncontrolling interest | -56 | [2] | 0 | [2] | 0 | [2] |
Transfer of redeemable noncontrolling interest | -46 | -9 | 0 | |||
Cumulative translation adjustment | -29 | -43 | 0 | |||
Deconsolidation of noncontrolling interests | 0 | 52 | 0 | |||
Other | -3 | 4 | 1 | |||
Stockholders' Equity Attributable to Noncontrolling Interest, Ending | $931 | $1,026 | $990 | |||
[1] | et of $27 million in dividends paid to a joint venture which were reclassified to "Equity in earnings of nonconsolidated affiliates." | |||||
[2] | See Note 19 for additional information on variable interest entities. |
OPERATING_SEGMENTS_AND_GEOGRAP2
OPERATING SEGMENTS AND GEOGRAPHIC AREAS (Schedule of Revenue by Geographic Area and Other Details) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
segments | ||||||
employees | ||||||
countries | ||||||
products | ||||||
manufacturingsites | ||||||
Sales by operating segment [Line Items] | ||||||
Number of Operating Segments | 5 | |||||
Number Of Countries With Customers Of Company | 180 | |||||
Entity Number of Employees | 53,000 | |||||
Number Of Products Manufactured | 6,000 | |||||
Number Of Manufacturing Sites | 201 | |||||
Number Of Countries With Manufacturing Sites | 35 | |||||
Sales to external customers | $58,167 | [1] | $57,080 | [1] | $56,786 | [1] |
Long-lived assets | 18,051 | 17,454 | 17,520 | |||
Dow Corning Corporation [Member] | ||||||
Sales by operating segment [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | 50.00% | |||
United States | ||||||
Sales by operating segment [Line Items] | ||||||
Number Of Manufacturing Sites | 73 | |||||
Percent of Long Lived Assets | 59.00% | |||||
Sales to external customers | 19,449 | 18,712 | 18,391 | |||
Long-lived assets | 10,605 | 9,320 | 8,953 | |||
Europe, Middle East, Africa and India | ||||||
Sales by operating segment [Line Items] | ||||||
Sales to external customers | 19,671 | [1] | 19,208 | [1] | 20,038 | [1] |
Long-lived assets | 2,628 | 3,256 | 3,426 | |||
Rest of World | ||||||
Sales by operating segment [Line Items] | ||||||
Sales to external customers | 19,047 | [1] | 19,160 | [1] | 18,357 | [1] |
Long-lived assets | $4,818 | $4,878 | $5,141 | |||
[1] | The Indian subcontinent, previously reported with Rest of World, is now aligned with Europe, Middle East, Africa and India; prior period sales and long-lived assets have been adjusted to reflect this realignment. |
OPERATING_SEGMENTS_AND_GEOGRAP3
OPERATING SEGMENTS AND GEOGRAPHIC AREAS (Schedule of Operating Segments) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Segment Reporting Information [Line Items] | |||||||
Sales to external customers | $58,167 | [1] | $57,080 | [1] | $56,786 | [1] | |
Intersegment revenues | 0 | [2] | 0 | [2] | 0 | [2] | |
Equity in earnings (losses) of nonconsolidated affiliates | 835 | 1,034 | 536 | ||||
Goodwill and other intangible asset impairment losses | 50 | [3] | 0 | 220 | [3] | ||
Restructuring charges (credits) | -3 | [4] | -22 | [4] | 1,343 | [4] | |
Asbestos-related charge | 78 | [5] | 0 | 0 | |||
EBITDA | 8,944 | [6] | 10,545 | [6] | 5,591 | [6] | |
Total Assets | 69,605 | 68,796 | 69,501 | 69,605 | |||
Investment in nonconsolidated affiliates | 4,121 | 4,201 | 4,501 | 4,121 | |||
Depreciation and amortization | 2,747 | 2,681 | 2,698 | ||||
Capital expenditures | 3,572 | 2,302 | 2,614 | ||||
Agricultural Sciences [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Sales to external customers | 7,290 | 7,137 | 6,382 | ||||
Intersegment revenues | 0 | [2] | 0 | [2] | 0 | [2] | |
Equity in earnings (losses) of nonconsolidated affiliates | 4 | 5 | 1 | ||||
Goodwill and other intangible asset impairment losses | 0 | [3] | 0 | [3] | |||
Restructuring charges (credits) | 0 | [4] | 0 | [4] | 0 | [4] | |
Asbestos-related charge | 0 | [5] | |||||
EBITDA | 962 | [6] | 894 | [6] | 923 | [6] | |
Total Assets | 6,368 | 7,292 | 7,059 | 6,368 | |||
Investment in nonconsolidated affiliates | 86 | 83 | 88 | 86 | |||
Depreciation and amortization | 208 | 189 | 176 | ||||
Capital expenditures | 383 | 319 | 321 | ||||
Consumer Solutions [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Sales to external customers | 4,639 | 4,562 | 4,518 | ||||
Intersegment revenues | 0 | [2] | 0 | [2] | 0 | [2] | |
Equity in earnings (losses) of nonconsolidated affiliates | 281 | 107 | 87 | ||||
Goodwill and other intangible asset impairment losses | 50 | [3] | 0 | [3] | |||
Restructuring charges (credits) | 0 | [4] | 0 | [4] | 136 | [4] | |
Asbestos-related charge | 0 | [5] | |||||
EBITDA | 1,130 | [6] | 933 | [6] | 773 | [6] | |
Total Assets | 10,597 | 9,629 | 10,171 | 10,597 | |||
Investment in nonconsolidated affiliates | 422 | 691 | 541 | 422 | |||
Depreciation and amortization | 396 | 414 | 416 | ||||
Capital expenditures | 114 | 105 | 244 | ||||
Infrastructure Solutions [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Sales to external customers | 8,429 | 8,339 | 8,071 | ||||
Intersegment revenues | 0 | [2] | 0 | [2] | 0 | [2] | |
Equity in earnings (losses) of nonconsolidated affiliates | -6 | 126 | 58 | ||||
Goodwill and other intangible asset impairment losses | 0 | [3] | 0 | [3] | |||
Restructuring charges (credits) | 0 | [4] | -1 | [4] | 61 | [4] | |
Asbestos-related charge | 0 | [5] | |||||
EBITDA | 817 | [6] | 941 | [6] | 963 | [6] | |
Total Assets | 13,104 | 12,245 | 12,844 | 13,104 | |||
Investment in nonconsolidated affiliates | 1,081 | 922 | 1,178 | 1,081 | |||
Depreciation and amortization | 510 | 528 | 542 | ||||
Capital expenditures | 269 | 198 | 292 | ||||
Performance Materials & Chemicals [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Sales to external customers | 15,114 | 14,824 | 14,981 | ||||
Intersegment revenues | 100 | [2] | 137 | [2] | 150 | [2] | |
Equity in earnings (losses) of nonconsolidated affiliates | 322 | 480 | 362 | ||||
Goodwill and other intangible asset impairment losses | 220 | 0 | [3] | 220 | [3] | ||
Restructuring charges (credits) | -3 | [4] | -15 | [4] | 299 | [4] | |
Asbestos-related charge | 0 | [5] | |||||
EBITDA | 2,193 | [6] | 1,913 | [6] | 1,603 | [6] | |
Total Assets | 13,164 | 12,179 | 12,085 | 13,164 | |||
Investment in nonconsolidated affiliates | 790 | 698 | 827 | 790 | |||
Depreciation and amortization | 780 | 743 | 783 | ||||
Capital expenditures | 315 | 409 | 759 | ||||
Performance Plastics [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Sales to external customers | 22,386 | 21,910 | 22,588 | ||||
Intersegment revenues | 0 | [2] | 0 | [2] | 0 | [2] | |
Equity in earnings (losses) of nonconsolidated affiliates | 257 | 355 | 130 | ||||
Restructuring charges (credits) | 0 | [4] | -6 | [4] | 33 | [4] | |
Asbestos-related charge | 0 | [5] | |||||
EBITDA | 4,422 | [6] | 4,503 | [6] | 2,924 | [6] | |
Total Assets | 13,560 | 13,459 | 13,788 | 13,560 | |||
Investment in nonconsolidated affiliates | 744 | 705 | 772 | 744 | |||
Depreciation and amortization | 759 | 707 | 672 | ||||
Capital expenditures | 2,490 | 1,271 | 951 | ||||
Corporate [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Sales to external customers | 309 | 308 | 246 | ||||
Intersegment revenues | -100 | [2] | -137 | [2] | -150 | [2] | |
Equity in earnings (losses) of nonconsolidated affiliates | -23 | -39 | -102 | ||||
Goodwill and other intangible asset impairment losses | 0 | [3] | 0 | [3] | |||
Restructuring charges (credits) | 0 | [4] | 0 | [4] | 814 | [4] | |
Asbestos-related charge | 78 | [5] | |||||
EBITDA | -580 | [6] | 1,361 | [6] | -1,595 | [6] | |
Total Assets | 12,812 | 13,992 | 13,554 | 12,812 | |||
Investment in nonconsolidated affiliates | 998 | 1,102 | 1,095 | 998 | |||
Depreciation and amortization | 94 | 100 | 109 | ||||
Capital expenditures | $1 | $0 | $47 | ||||
[1] | The Indian subcontinent, previously reported with Rest of World, is now aligned with Europe, Middle East, Africa and India; prior period sales and long-lived assets have been adjusted to reflect this realignment. | ||||||
[2] | Includes revenues generated by transfers of product to Agricultural Sciences from other segments, generally at market-based prices. Other transfers of products between operating segments are generally valued at cost. | ||||||
[3] | See Note 11 for information regarding intangible asset impairment losses and Note 9 for information regarding the goodwill impairment loss. | ||||||
[4] | See Note 3 for information regarding restructuring charges and credits. | ||||||
[5] | See Note 14 for information regarding the asbestos-related charge. | ||||||
[6] | A reconciliation of EBITDA to bIncome Before Income Taxesb is provided below. |
OPERATING_SEGMENTS_AND_GEOGRAP4
OPERATING SEGMENTS AND GEOGRAPHIC AREAS (Reconciliation of EBITDA to Income Before Income Taxes) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Reconciliation of EBITDA to Income Before Income Taxes [Abstract] | ||||||
EBITDA | $8,944 | [1] | $10,545 | [1] | $5,591 | [1] |
Depreciation and amortization | 2,747 | 2,681 | 2,698 | |||
Interest income | 51 | 41 | 41 | |||
Interest expense and amortization of debt discount | 983 | 1,101 | 1,269 | |||
Income Before Income Taxes | $5,265 | $6,804 | $1,665 | |||
[1] | A reconciliation of EBITDA to bIncome Before Income Taxesb is provided below. |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Deductions from reserves | $99 | $38 | $92 | |||
Notes and accounts receivable written off | 32 | 28 | 62 | |||
Reclassification of reserve for cash discounts and returns to accounts receivable | 0 | 0 | 21 | |||
Credits to profit and loss | 38 | 7 | 1 | |||
Sale of trade accounts receivable | 0 | 1 | 3 | |||
Miscellaneous other | 29 | 2 | 5 | |||
For Doubtful Receivables [Member] | ||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at beginning of year | 148 | 121 | 121 | |||
Valuation Allowances and Reserves, Charged to Cost and Expense | 53 | 65 | 81 | |||
Valuation Allowances and Reserves, Charged to Other Accounts | 8 | [1] | 0 | 11 | [1] | |
Deductions from reserves | 99 | [2] | 38 | [2] | 92 | [2] |
Balance at end of year | 110 | 148 | 121 | |||
Other Investments and Noncurrent Receivables [Member] | ||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at beginning of year | 454 | 467 | 458 | |||
Valuation Allowances and Reserves, Charged to Cost and Expense | 62 | 39 | 25 | |||
Valuation Allowances and Reserves, Charged to Other Accounts | 0 | 0 | 0 | |||
Deductions from reserves | 39 | 52 | 16 | |||
Balance at end of year | 477 | 454 | 467 | |||
Valuation Allowance of Deferred Tax Assets [Member] | ||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at beginning of year | 1,112 | 1,399 | 1,152 | |||
Valuation Allowances and Reserves, Charged to Cost and Expense | 126 | 214 | 335 | |||
Valuation Allowances and Reserves, Charged to Other Accounts | 0 | 0 | 0 | |||
Deductions from reserves | 132 | 501 | 88 | |||
Balance at end of year | $1,106 | $1,112 | $1,399 | |||
[1] | Additions to reserves for doubtful receivables charged to other accounts were classified as "Accounts and notes receivable - Other" in the consolidated balance sheets. These reserves relate to the Company's sale of trade accounts receivable. Anticipated credit losses in the portfolio of receivables sold are used to fair value the Company's interests held in trade accounts receivable conduits. See Notes 11 and 15 to the Consolidated Financial Statements for further information. | |||||
[2] | (2) 2014B 2013B 2012B Deductions represent: Notes and accounts receivable written offB $32B $28B $62B Reclassification of reserve for cash discounts and returns to accounts receivableB bB bB 21B Credits to profit and lossB 38B 7B 1B Sale of trade accounts receivable (see NoteB 15 to the Consolidated Financial Statements)B bB 1B 3B Miscellaneous otherB 29B 2B 5 $99B $38B $92 |