Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2015 | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | DOW CHEMICAL CO /DE/ |
Entity Central Index Key | 29915 |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | 31-Mar-15 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | FALSE |
Entity Common Stock, Shares Outstanding | 1,152,880,868 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Net Sales | $12,370 | $14,461 | |
Cost of sales | 9,535 | 11,733 | |
Research and development expenses | 383 | 391 | |
Selling, general and administrative expenses | 752 | 779 | |
Amortization of intangibles | 102 | 114 | |
Equity in earnings of nonconsolidated affiliates | 168 | 251 | |
Sundry income (expense) - net | 663 | 29 | |
Interest income | 17 | 13 | |
Interest expense and amortization of debt discount | 241 | 246 | |
Income Before Income Taxes | 2,205 | 1,491 | |
Provision for income taxes | 686 | 425 | |
Net Income | 1,519 | 1,066 | |
Net income attributable to noncontrolling interests | 41 | 17 | |
Net Income Attributable to The Dow Chemical Company | 1,478 | 1,049 | |
Preferred stock dividends | 85 | 85 | [1] |
Net Income Available for The Dow Chemical Company Common Stockholders | 1,393 | 964 | |
Per Common Share Data: | |||
Earnings per common share - basic | $1.22 | $0.80 | |
Earnings per common share - diluted | $1.18 | $0.79 | |
Dividends declared per share of common stock | $0.42 | $0.37 | |
Weighted-average common shares outstanding - basic | 1,135.70 | 1,190.60 | |
Weighted-average common shares outstanding - diluted | 1,246.70 | 1,207.70 | |
Depreciation | 486 | 517 | |
Capital Expenditures | $903 | $672 | |
[1] | Preferred stock dividends were not added back in the calculation of diluted earnings per share for the three-month period ended March 31, 2014, because the effect of adding them back would have been antidilutive. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net Income | $1,519 | $1,066 |
Other Comprehensive Income (Loss), Net of Tax | ||
Net change in unrealized gains on investments | -2 | -11 |
Translation adjustments | -937 | -71 |
Adjustments to pension and other postretirement benefit plans | 125 | 81 |
Net gains (losses) on cash flow hedging derivative instruments | -9 | 4 |
Other comprehensive income (loss) | -823 | 3 |
Comprehensive Income | 696 | 1,069 |
Comprehensive income attributable to noncontrolling interests, net of tax | 41 | 20 |
Comprehensive Income Attributable to The Dow Chemical Company | $655 | $1,049 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents (variable interest entities restricted - 2015: $244; 2014: $190) | $6,288 | $5,654 |
Accounts and notes receivable: | ||
Trade (net of allowance for doubtful receivables - 2015: $105; 2014: $110) | 4,695 | 4,685 |
Other | 4,044 | 4,687 |
Inventories | 8,087 | 8,101 |
Deferred income tax assets - current | 908 | 812 |
Other current assets | 372 | 328 |
Total current assets | 24,394 | 24,267 |
Investments | ||
Investment in nonconsolidated affiliates | 3,912 | 4,201 |
Other investments (investments carried at fair value - 2015: $1,980; 2014: $2,009) | 2,400 | 2,439 |
Noncurrent receivables | 550 | 620 |
Total investments | 6,862 | 7,260 |
Property | ||
Property | 54,201 | 55,230 |
Less accumulated depreciation | 36,135 | 37,179 |
Net property (variable interest entities restricted - 2015: $2,708; 2014: $2,726) | 18,066 | 18,051 |
Other Assets | ||
Goodwill | 12,183 | 12,632 |
Other intangible assets (net of accumulated amortization - 2015: $3,757; 2014: $3,737) | 3,618 | 3,768 |
Deferred income tax assets - noncurrent | 1,996 | 2,135 |
Asbestos-related insurance receivables - noncurrent | 54 | 62 |
Deferred charges and other assets | 616 | 621 |
Total other assets | 18,467 | 19,218 |
Total Assets | 67,789 | 68,796 |
Current Liabilities | ||
Notes payable | 482 | 551 |
Long-term debt due within one year | 1,440 | 394 |
Accounts payable: | ||
Trade | 4,417 | 4,481 |
Other | 2,198 | 2,299 |
Income taxes payable | 702 | 361 |
Deferred income tax liabilities - current | 104 | 105 |
Dividends payable | 562 | 563 |
Accrued and other current liabilities | 2,482 | 2,839 |
Total current liabilities | 12,387 | 11,593 |
Long-Term Debt (variable interest entities nonrecourse - 2015: $1,227; 2014: $1,229) | 17,867 | 18,838 |
Other Noncurrent Liabilities | ||
Deferred income tax liabilities - noncurrent | 572 | 622 |
Pension and other postretirement benefits - noncurrent | 9,863 | 10,459 |
Asbestos-related liabilities - noncurrent | 425 | 438 |
Other noncurrent obligations | 3,259 | 3,290 |
Total other noncurrent liabilities | 14,119 | 14,809 |
Redeemable Noncontrolling Interest | 202 | 202 |
Stockholders’ Equity | ||
Preferred stock, series A | 4,000 | 4,000 |
Common stock | 3,107 | 3,107 |
Additional paid-in capital | 4,792 | 4,846 |
Retained earnings | 23,956 | 23,045 |
Accumulated other comprehensive loss | -8,840 | -8,017 |
Unearned ESOP shares | -290 | -325 |
Treasury stock at cost | -4,488 | -4,233 |
The Dow Chemical Company’s stockholders’ equity | 22,237 | 22,423 |
Non-redeemable noncontrolling interests | 977 | 931 |
Total equity | 23,214 | 23,354 |
Total Liabilities and Equity | $67,789 | $68,796 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents (variable interest entities restricted) | $244 | $190 |
Accounts and notes receivable: | ||
Trade (allowance for doubtful receivables) | 105 | 110 |
Investments | ||
Other investments (investments carried at fair value) | 1,980 | 2,009 |
Property | ||
Net property (variable interest entities restricted) | 2,708 | 2,726 |
Other Assets | ||
Other intangible assets (accumulated amortization) | 3,757 | 3,737 |
Long-Term Debt | ||
Long Term Debt (Variable interest entities nonrecourse) | $1,227 | $1,229 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating Activities | ||
Net Income | $1,519 | $1,066 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 634 | 672 |
Credit for deferred income tax | -51 | -93 |
Earnings of nonconsolidated affiliates less than dividends received | 407 | 298 |
Pension contributions | -325 | -315 |
Net gain on sales of investments | -22 | -39 |
Net gain on sales of property, businesses and consolidated companies | -706 | -1 |
Excess tax benefits from share-based payment arrangements | -2 | -25 |
Other net loss | 17 | 25 |
Changes in assets and liabilities, net of effects of acquired and divested companies: | ||
Accounts and notes receivable | -81 | -871 |
Proceeds from interests in trade accounts receivable conduits | 285 | 150 |
Inventories | -62 | -798 |
Accounts payable | -326 | 391 |
Other assets and liabilities | -29 | 115 |
Cash provided by operating activities | 1,258 | 575 |
Investing Activities | ||
Capital expenditures | -903 | -672 |
Proceeds from sale-leaseback of assets | 0 | 6 |
Proceeds from sales of property, businesses and consolidated companies, net of cash divested | 1,375 | 25 |
Acquisitions of businesses | 79 | 0 |
Investments in and loans to nonconsolidated affiliates | -125 | -17 |
Distributions and loan repayments from nonconsolidated affiliates | 1 | 0 |
Purchases of investments | -83 | -220 |
Proceeds from sales and maturities of investments | 134 | 224 |
Cash provided by (used in) investing activities | 320 | -654 |
Financing Activities | ||
Changes in short-term notes payable | -39 | -48 |
Proceeds from issuance of long-term debt | 102 | 138 |
Payments on long-term debt | -13 | -391 |
Purchases of treasury stock | -500 | -1,250 |
Proceeds from issuance of common stock | 0 | 480 |
Proceeds from sales of common stock | 106 | 47 |
Issuance costs on debt and equity securities | -1 | -1 |
Excess tax benefits from share-based payment arrangements | 2 | 25 |
Contributions from noncontrolling interests | 14 | 29 |
Distributions to noncontrolling interests | -9 | -11 |
Purchases of noncontrolling interests | 0 | -4 |
Dividends paid to stockholders | -563 | -466 |
Cash used in financing activities | -901 | -1,452 |
Effect of Exchange Rate Changes on Cash | -43 | -24 |
Summary | ||
Increase (decrease) in cash and cash equivalents | 634 | -1,555 |
Cash and cash equivalents at beginning of period | 5,654 | 5,940 |
Cash and cash equivalents at end of period | $6,288 | $4,385 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Total | The Dow Chemical Company's Stockholder's Equity [Member] | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss | Unearned ESOP Shares [Member] | Treasury Stock [Member] | Noncontrolling Interests [Member] |
In Millions, unless otherwise specified | ||||||||||
Stockholders' Equity Attributable to Parent, Beginning at Dec. 31, 2013 | $4,000 | $3,054 | $3,928 | $21,407 | ($4,827) | ($357) | ($307) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Common stock issued | 38 | |||||||||
Common Stock Issued/Sold Additional Paid in Capital | 489 | |||||||||
Stock-based compensation and allocation of ESOP shares | -4 | |||||||||
Net income available for The Dow Chemical Company common stockholders | 964 | 964 | ||||||||
Dividends declared on common stock (per share - 2015: $0.42; 2014: $0.37) | -437 | |||||||||
Other | -6 | -5 | 1 | |||||||
Other comprehensive income (loss) | 3 | 3 | ||||||||
Shares Allocated to ESOP participants | 8 | |||||||||
Purchases | -1,250 | |||||||||
Issuances - compensation plans | 43 | |||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 982 | |||||||||
Stockholders' Equity Attributable to Parent, Ending at Mar. 31, 2014 | 26,741 | 4,000 | 3,092 | 4,407 | 21,929 | -4,824 | -349 | -1,514 | ||
Total Equity, Ending at Mar. 31, 2014 | 27,723 | |||||||||
Stockholders' Equity Attributable to Parent, Beginning at Dec. 31, 2014 | 22,423 | 4,000 | 3,107 | 4,846 | 23,045 | -8,017 | -325 | -4,233 | ||
Total Equity, Beginning at Dec. 31, 2014 | 23,354 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Common stock issued | 0 | |||||||||
Common Stock Issued/Sold Additional Paid in Capital | 106 | |||||||||
Stock-based compensation and allocation of ESOP shares | -160 | |||||||||
Net income available for The Dow Chemical Company common stockholders | 1,393 | 1,393 | ||||||||
Dividends declared on common stock (per share - 2015: $0.42; 2014: $0.37) | -477 | |||||||||
Other | 0 | -5 | 0 | |||||||
Other comprehensive income (loss) | -823 | -823 | ||||||||
Shares Allocated to ESOP participants | 35 | |||||||||
Purchases | -500 | |||||||||
Issuances - compensation plans | 245 | |||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 977 | 977 | ||||||||
Stockholders' Equity Attributable to Parent, Ending at Mar. 31, 2015 | 22,237 | 22,237 | 4,000 | 3,107 | 4,792 | 23,956 | -8,840 | -290 | -4,488 | |
Total Equity, Ending at Mar. 31, 2015 | $23,214 |
Consolidated_Statements_of_Equ1
Consolidated Statements of Equity (Parenthetical) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Retained Earnings | ||
Dividends declared on common stock (Per share) | $0.42 | $0.37 |
CONSOLIDATED_FINANCIAL_STATEME
CONSOLIDATED FINANCIAL STATEMENTS | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONSOLIDATED FINANCIAL STATEMENTS | CONSOLIDATED FINANCIAL STATEMENTS |
The unaudited interim consolidated financial statements of The Dow Chemical Company and its subsidiaries (“Dow” or the “Company”) were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and reflect all adjustments (including normal recurring accruals) which, in the opinion of management, are considered necessary for the fair presentation of the results for the periods presented. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. |
RECENT_ACCOUNTING_GUIDANCE
RECENT ACCOUNTING GUIDANCE | 3 Months Ended |
Mar. 31, 2015 | |
Recent Accounting Guidance [Abstract] | |
Recent Accounting Guidance [Text Block] | RECENT ACCOUNTING GUIDANCE |
Accounting Guidance Issued But Not Yet Adopted as of March 31, 2015 | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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. The tentative revised effective date for this ASU is for annual and interim periods beginning on or after December 15, 2017, and early adoption will be 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. | |
In February 2015, the FASB issued ASU 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis," which makes changes to both the variable interest model and voting interest model and eliminates the indefinite deferral of FASB Statement No. 167, included in ASU 2010-10, for certain investment funds. All reporting entities that hold a variable interest in other legal entities will need to re-evaluate their consolidation conclusions as well as disclosure requirements. This ASU is effective for annual periods beginning after December 15, 2015, and early adoption is permitted, including any interim period. The Company is currently evaluating the impact of adopting this guidance. | |
In April 2015, the FASB issued ASU 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs," which requires debt issuance costs be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, and amortization of those costs should be reported as interest expense. This ASU is effective for financial statements issued for annual and interim periods beginning after December 15, 2015, and early adoption is permitted for financial statements that have not been previously issued. The new guidance should be applied on a retrospective basis for each period presented in the balance sheet. The Company is currently evaluating the impact of adopting this guidance. | |
In April 2015, the FASB issued ASU 2015-05, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement," which provides guidance about whether a cloud computing arrangement includes a software license. The customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If the cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. This ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015, and early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance. |
ACQUISITIONS_AND_DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 3 Months Ended | |||
Mar. 31, 2015 | ||||
ACQUISITIONS AND DIVESTITURES [Abstract] | ||||
Acquisitions and Divestitures [Text Block} | ACQUISITIONS AND DIVESTITURES | |||
Acquisition of Cooperativa Central de Pesquisa Agrícola's Seed Business | ||||
On January 30, 2015, Dow AgroSciences LLC ("DAS") acquired Cooperativa Central de Pesquisa Agrícola's ("Coodetec") seed business for $169 million, with $79 million paid in the first quarter of 2015, approximately $20 million to be paid during the remainder of 2015 and the remaining portion to be paid in two equal installments in the first quarter of 2016 and 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. | ||||
The following table summarizes the fair values of the assets acquired and liabilities assumed from Coodetec on January 30, 2015. The valuation process is not complete. Final determination of the fair values may result in further adjustments to the values presented below. | ||||
Assets Acquired and Liabilities Assumed | On January 30, | |||
In millions | 2015 | |||
Purchase Price | $ | 169 | ||
Fair Value of Assets Acquired | ||||
Inventories | $ | 24 | ||
Property | 35 | |||
Other intangible assets (1) | 81 | |||
Total Assets Acquired | $ | 140 | ||
Fair Value of Liabilities Assumed | ||||
Accrued and other current liabilities | $ | 2 | ||
Total Liabilities Assumed | $ | 2 | ||
Goodwill | $ | 31 | ||
-1 | Includes $14 million of trademarks, $1 million of customer-related intangibles, $20 million of germplasm and $46 million of in-process research and development. See Note 5 for additional information. | |||
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 May 2015, pending regulatory approvals. | ||||
Divestiture of the Global Sodium Borohydride Business | ||||
On January 30, 2015, the Company sold its global Sodium Borohydride business ("SBH"), part of the Performance Materials & Chemicals segment, to Vertellus Performance Chemicals LLC. 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 sale was completed for $184 million, net of working capital adjustments and costs to sell, with proceeds subject to customary post-closing adjustments. | ||||
The Company recognized a pretax gain of $18 million on the sale in the first quarter of 2015, included in "Sundry income (expense) - net" and reflected in the Performance Materials & Chemicals segment. The Company recognized an after-tax loss of $9 million on the sale, primarily due to non-deductible goodwill included with this transaction. | ||||
SBH Assets and Liabilities Divested on January 30, 2015 | Performance Materials & Chemicals | |||
In millions | ||||
Inventories | $ | 23 | ||
Property | 21 | |||
Goodwill | 45 | |||
Other intangible assets | 75 | |||
Total assets divested | $ | 164 | ||
Components of accumulated other comprehensive loss divested | $ | 2 | ||
Net carrying value divested | $ | 166 | ||
Divestiture of ANGUS Chemical Company | ||||
On February 2, 2015, the Company sold ANGUS Chemical Company (“ANGUS”), part of the Performance Materials & Chemicals segment, to Golden Gate Capital. 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 sale was completed for $1.151 billion, net of working capital adjustments, costs to sell and other transaction expenses, with proceeds subject to customary post-closing adjustments. The proceeds included a $10 million note receivable included in "Noncurrent receivables" in the consolidated balance sheets. | ||||
The Company recognized a pretax gain of $670 million on the sale in the first quarter of 2015, included in "Sundry income (expense) - net" and reflected in the Performance Materials & Chemicals segment. | ||||
ANGUS Assets and Liabilities Divested on February 2, 2015 | Performance Materials & Chemicals | |||
In millions | ||||
Current assets | $ | 124 | ||
Property | 101 | |||
Goodwill | 292 | |||
Other assets | 8 | |||
Total assets divested | $ | 525 | ||
Current liabilities | $ | 17 | ||
Other noncurrent liabilities | 37 | |||
Total liabilities divested | $ | 54 | ||
Components of accumulated other comprehensive loss divested | $ | 10 | ||
Net carrying value divested | $ | 481 | ||
The Company evaluated the divestitures of SBH and ANGUS and determined they do not represent a strategic shift that has 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, these divestitures are not reported as discontinued operations. |
INVENTORIES
INVENTORIES | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
INVENTORIES | INVENTORIES | |||||||
The following table provides a breakdown of inventories: | ||||||||
Inventories | Mar 31, 2015 | Dec 31, 2014 | ||||||
In millions | ||||||||
Finished goods | $ | 4,597 | $ | 4,547 | ||||
Work in process | 1,832 | 1,905 | ||||||
Raw materials | 814 | 797 | ||||||
Supplies | 844 | 852 | ||||||
Total inventories | $ | 8,087 | $ | 8,101 | ||||
The reserves reducing inventories from the first-in, first-out (“FIFO”) basis to the last-in, first-out (“LIFO”) basis amounted to $326 million at March 31, 2015 and $569 million at December 31, 2014. |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS | |||||||||||||||||||||||
The following table shows the carrying amount of goodwill by operating segment: | ||||||||||||||||||||||||
Goodwill | Agricultural Sciences | Consumer Solutions | Infrastructure Solutions | Performance | Performance Plastics | Total | ||||||||||||||||||
In millions | Materials & Chemicals | |||||||||||||||||||||||
Net goodwill at Dec 31, 2014 | $ | 1,558 | $ | 4,389 | $ | 4,451 | $ | 809 | $ | 1,425 | $ | 12,632 | ||||||||||||
Divestiture of ANGUS Chemical Company | — | — | — | (292 | ) | — | (292 | ) | ||||||||||||||||
Divestiture of the Sodium Borohydride business | — | — | — | (45 | ) | — | (45 | ) | ||||||||||||||||
Goodwill related to the Coodetec acquisition | 31 | — | — | — | — | 31 | ||||||||||||||||||
Foreign currency impact | — | (17 | ) | (79 | ) | (11 | ) | (36 | ) | (143 | ) | |||||||||||||
Net goodwill at Mar 31, 2015 | $ | 1,589 | $ | 4,372 | $ | 4,372 | $ | 461 | $ | 1,389 | $ | 12,183 | ||||||||||||
The following table provides information regarding the Company’s other intangible assets: | ||||||||||||||||||||||||
Other Intangible Assets | At March 31, 2015 | At December 31, 2014 | ||||||||||||||||||||||
In millions | Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Intangible assets with finite lives: | ||||||||||||||||||||||||
Licenses and intellectual property | $ | 1,773 | $ | (1,092 | ) | $ | 681 | $ | 1,777 | $ | (1,060 | ) | $ | 717 | ||||||||||
Patents | 120 | (107 | ) | 13 | 122 | (108 | ) | 14 | ||||||||||||||||
Software | 1,283 | (655 | ) | 628 | 1,287 | (648 | ) | 639 | ||||||||||||||||
Trademarks | 686 | (418 | ) | 268 | 685 | (409 | ) | 276 | ||||||||||||||||
Customer-related | 3,259 | (1,341 | ) | 1,918 | 3,443 | (1,366 | ) | 2,077 | ||||||||||||||||
Other | 175 | (144 | ) | 31 | 158 | (146 | ) | 12 | ||||||||||||||||
Total other intangible assets, finite lives | $ | 7,296 | $ | (3,757 | ) | $ | 3,539 | $ | 7,472 | $ | (3,737 | ) | $ | 3,735 | ||||||||||
IPR&D (1), indefinite lives | 79 | — | 79 | 33 | — | 33 | ||||||||||||||||||
Total other intangible assets | $ | 7,375 | $ | (3,757 | ) | $ | 3,618 | $ | 7,505 | $ | (3,737 | ) | $ | 3,768 | ||||||||||
-1 | In-process research and development (“IPR&D”) purchased in a business combination. | |||||||||||||||||||||||
On January 30, 2015, DAS acquired Coodetec's seed business resulting in an increase to intangible assets of $81 million, which included $14 million of trademarks, $1 million of customer-related intangibles, $20 million of germplasm (included in "Other" in the table above) and $46 million of IPR&D. See Note 3 for additional information on the acquisition. | ||||||||||||||||||||||||
The following table provides information regarding amortization expense related to intangible assets: | ||||||||||||||||||||||||
Amortization Expense | Three Months Ended | |||||||||||||||||||||||
In millions | Mar 31, 2015 | Mar 31, 2014 | ||||||||||||||||||||||
Other intangible assets, excluding software | $ | 102 | $ | 114 | ||||||||||||||||||||
Software, included in “Cost of sales” | $ | 18 | $ | 16 | ||||||||||||||||||||
Total estimated amortization expense for 2015 and the five succeeding fiscal years is as follows: | ||||||||||||||||||||||||
Estimated Amortization Expense | ||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||
2015 | $ | 480 | ||||||||||||||||||||||
2016 | $ | 465 | ||||||||||||||||||||||
2017 | $ | 434 | ||||||||||||||||||||||
2018 | $ | 414 | ||||||||||||||||||||||
2019 | $ | 350 | ||||||||||||||||||||||
2020 | $ | 327 | ||||||||||||||||||||||
FINANCIAL_INSTRUMENTS
FINANCIAL INSTRUMENTS | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||
Financial Instruments [Abstact] | ||||||||||||||||||||||||||||||||
Financial Instruments Disclosure [Text Block] | FINANCIAL INSTRUMENTS | |||||||||||||||||||||||||||||||
A summary of the Company's financial instruments, risk management policies, derivative instruments and hedging activities can be found in Note 10 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014. If applicable, updates have been included in the respective section below. | ||||||||||||||||||||||||||||||||
The following table summarizes the fair value of financial instruments at March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||||||||||||
At March 31, 2015 | At December 31, 2014 | |||||||||||||||||||||||||||||||
In millions | Cost | Gain | Loss | Fair | Cost | Gain | Loss | Fair | ||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||
Marketable securities: (1) | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
Government debt (2) | $ | 517 | $ | 31 | $ | — | $ | 548 | $ | 559 | $ | 26 | $ | (1 | ) | $ | 584 | |||||||||||||||
Corporate bonds | 677 | 54 | (1 | ) | 730 | 654 | 45 | (2 | ) | 697 | ||||||||||||||||||||||
Total debt securities | $ | 1,194 | $ | 85 | $ | (1 | ) | $ | 1,278 | $ | 1,213 | $ | 71 | $ | (3 | ) | $ | 1,281 | ||||||||||||||
Equity securities | 557 | 164 | (19 | ) | 702 | 566 | 177 | (15 | ) | 728 | ||||||||||||||||||||||
Total marketable securities | $ | 1,751 | $ | 249 | $ | (20 | ) | $ | 1,980 | $ | 1,779 | $ | 248 | $ | (18 | ) | $ | 2,009 | ||||||||||||||
Long-term debt including debt due within one year (3) | $ | (19,307 | ) | $ | 3 | $ | (2,606 | ) | $ | (21,910 | ) | $ | (19,232 | ) | $ | 100 | $ | (2,318 | ) | $ | (21,450 | ) | ||||||||||
Derivatives relating to: | ||||||||||||||||||||||||||||||||
Interest rates | $ | — | $ | — | $ | (12 | ) | $ | (12 | ) | $ | — | $ | — | $ | (12 | ) | $ | (12 | ) | ||||||||||||
Commodities (4) | $ | — | $ | 5 | $ | (164 | ) | $ | (159 | ) | $ | — | $ | 3 | $ | (81 | ) | $ | (78 | ) | ||||||||||||
Foreign currency | $ | — | $ | 23 | $ | (139 | ) | $ | (116 | ) | $ | — | $ | 26 | $ | (71 | ) | $ | (45 | ) | ||||||||||||
-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 hedge adjustments of $20 million at March 31, 2015 and $21 million at December 31, 2014. | |||||||||||||||||||||||||||||||
-4 | Presented net of cash collateral, as disclosed in Note 7. | |||||||||||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||||||
The Company’s investments in marketable securities are primarily classified as available-for-sale. The following table provides the investing results from available-for-sale securities for the three-month periods ended March 31, 2015 and March 31, 2014: | ||||||||||||||||||||||||||||||||
Investing Results | Three Months Ended | |||||||||||||||||||||||||||||||
In millions | Mar 31, | Mar 31, | ||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
Proceeds from sales of available-for-sale securities | $ | 114 | $ | 208 | ||||||||||||||||||||||||||||
Gross realized gains | $ | 23 | $ | 46 | ||||||||||||||||||||||||||||
Gross realized losses | $ | (1 | ) | $ | (1 | ) | ||||||||||||||||||||||||||
The following table summarizes the contractual maturities of the Company’s investments in debt securities: | ||||||||||||||||||||||||||||||||
Contractual Maturities of Debt Securities | ||||||||||||||||||||||||||||||||
at March 31, 2015 | ||||||||||||||||||||||||||||||||
In millions | Amortized Cost | Fair Value | ||||||||||||||||||||||||||||||
Within one year | $ | 17 | $ | 17 | ||||||||||||||||||||||||||||
One to five years | 468 | 491 | ||||||||||||||||||||||||||||||
Six to ten years | 511 | 542 | ||||||||||||||||||||||||||||||
After ten years | 198 | 228 | ||||||||||||||||||||||||||||||
Total | $ | 1,194 | $ | 1,278 | ||||||||||||||||||||||||||||
At March 31, 2015, the Company had $2,102 million ($1,050 million at December 31, 2014) 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 March 31, 2015, the Company had investments in money market funds of $1,369 million classified as cash equivalents ($1,655 million at December 31, 2014). | ||||||||||||||||||||||||||||||||
The aggregate cost of the Company’s cost method investments totaled $190 million at March 31, 2015 ($181 million at December 31, 2014). 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 no reduction in the cost basis of these investments for the three-month period ended March 31, 2015 ($5 million reduction in the three-month period ended March 31, 2014). | ||||||||||||||||||||||||||||||||
Accounting for Derivative Instruments and Hedging Activities | ||||||||||||||||||||||||||||||||
Fair Value Hedges | ||||||||||||||||||||||||||||||||
For interest rate swap 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 March 31, 2015, the Company had an interest rate swap with a notional amount of $100 million (zero at December 31, 2014) designated as a fair value hedge of underlying fixed rate debt obligations with a maturity date of May 2019. The fair value adjustments resulting from this swap were a gain on the derivative of less than $1 million at March 31, 2015 (zero at December 31, 2014). | ||||||||||||||||||||||||||||||||
The following table provides the fair value and gross balance sheet classification of derivative instruments at March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments | Balance Sheet Classification | Mar 31, | Dec 31, | |||||||||||||||||||||||||||||
In millions | 2015 | 2014 | ||||||||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||||||||||
Commodities | Other current assets | $ | 2 | $ | 4 | |||||||||||||||||||||||||||
Foreign currency | Accounts and notes receivable – Other | 48 | 25 | |||||||||||||||||||||||||||||
Total derivatives designated as hedges | $ | 50 | $ | 29 | ||||||||||||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||||||||||
Commodities | Other current assets | $ | 4 | $ | 2 | |||||||||||||||||||||||||||
Foreign currency | Accounts and notes receivable – Other | 64 | 91 | |||||||||||||||||||||||||||||
Total derivatives not designated as hedges | $ | 68 | $ | 93 | ||||||||||||||||||||||||||||
Total asset derivatives | $ | 118 | $ | 122 | ||||||||||||||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||||||||||
Interest rates | Accounts payable – Other | $ | 12 | $ | 12 | |||||||||||||||||||||||||||
Commodities | Accounts payable – Other | 165 | 106 | |||||||||||||||||||||||||||||
Foreign currency | Accounts payable – Other | 1 | — | |||||||||||||||||||||||||||||
Total derivatives designated as hedges | $ | 178 | $ | 118 | ||||||||||||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||||||||||
Commodities | Accounts payable – Other | $ | 2 | $ | 2 | |||||||||||||||||||||||||||
Foreign currency | Accounts payable – Other | 227 | 161 | |||||||||||||||||||||||||||||
Total derivatives not designated as hedges | $ | 229 | $ | 163 | ||||||||||||||||||||||||||||
Total liability derivatives | $ | 407 | $ | 281 | ||||||||||||||||||||||||||||
Foreign currency derivatives not designated as hedges are used to offset foreign exchange gains or losses resulting from the underlying exposures of foreign currency denominated assets and liabilities. | ||||||||||||||||||||||||||||||||
The net after-tax amounts to be reclassified from "Accumulated other comprehensive loss" to income within the next 12 months are a $4 million loss for interest rate contracts, a $37 million loss for commodity contracts and a $61 million gain for foreign currency contracts. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||
Fair Value Disclosures [Text Block] | FAIR VALUE MEASUREMENTS | |||||||||||||||||||
A summary of the Company's recurring and nonrecurring fair value measurements can be found in Note 11 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014. If applicable, updates have been included in the respective section below. | ||||||||||||||||||||
Fair Value Measurements on a Recurring Basis | ||||||||||||||||||||
The following tables summarize the bases used to measure certain assets and liabilities at fair value on a recurring basis: | ||||||||||||||||||||
Basis of Fair Value Measurements | Quoted Prices | Significant | Significant | Counterparty | Total | |||||||||||||||
on a Recurring Basis | in Active | Other | Unobservable | and Cash | ||||||||||||||||
at March 31, 2015 | 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) | $ | — | $ | 3,471 | $ | — | $ | — | $ | 3,471 | ||||||||||
Interests in trade accounts receivable conduits (3) | — | — | 1,263 | — | 1,263 | |||||||||||||||
Equity securities (4) | 666 | 36 | — | — | 702 | |||||||||||||||
Debt securities: (4) | ||||||||||||||||||||
Government debt (5) | — | 548 | — | — | 548 | |||||||||||||||
Corporate bonds | — | 730 | — | — | 730 | |||||||||||||||
Derivatives relating to: (6) | ||||||||||||||||||||
Commodities | 1 | 5 | — | (1 | ) | 5 | ||||||||||||||
Foreign currency | — | 112 | — | (89 | ) | 23 | ||||||||||||||
Total assets at fair value | $ | 667 | $ | 4,902 | $ | 1,263 | $ | (90 | ) | $ | 6,742 | |||||||||
Liabilities at fair value: | ||||||||||||||||||||
Long-term debt (7) | $ | — | $ | 21,910 | $ | — | $ | — | $ | 21,910 | ||||||||||
Derivatives relating to: (6) | ||||||||||||||||||||
Interest rates | — | 12 | — | — | 12 | |||||||||||||||
Commodities | 1 | 166 | — | (3 | ) | 164 | ||||||||||||||
Foreign currency | — | 228 | — | (89 | ) | 139 | ||||||||||||||
Total liabilities at fair value | $ | 1 | $ | 22,316 | $ | — | $ | (92 | ) | $ | 22,225 | |||||||||
-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 9 for additional information on transfers of financial assets. | |||||||||||||||||||
-4 | The Company’s investments in equity and debt securities are primarily classified as available-for-sale and are included in “Other investments” in the consolidated balance sheets. | |||||||||||||||||||
-5 | U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. | |||||||||||||||||||
-6 | See Note 6 for the classification of derivatives in the consolidated balance sheets. | |||||||||||||||||||
-7 | See Note 6 for information on fair value 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, 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 9 for additional information on transfers of financial assets. | |||||||||||||||||||
-4 | The Company’s investments in equity and debt securities are primarily classified as available-for-sale and are included in “Other investments” in the consolidated balance sheets. | |||||||||||||||||||
-5 | U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. | |||||||||||||||||||
-6 | See Note 6 for the classification of derivatives in the consolidated balance sheets. | |||||||||||||||||||
-7 | See Note 6 for information on fair value 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 $6 million at March 31, 2015 ($29 million at December 31, 2014). | ||||||||||||||||||||
The following table summarizes the changes in fair value measurements using Level 3 inputs for the three-month periods ended March 31, 2015 and March 31, 2014: | ||||||||||||||||||||
Fair Value Measurements Using Level 3 Inputs | Three Months Ended | |||||||||||||||||||
Interests Held in Trade Receivable Conduits (1) | Mar 31, | Mar 31, | ||||||||||||||||||
In millions | 2015 | 2014 | ||||||||||||||||||
Balance at beginning of period | $ | 1,328 | $ | 1,227 | ||||||||||||||||
Gain (loss) included in earnings (2) | 1 | (1 | ) | |||||||||||||||||
Purchases | 219 | 263 | ||||||||||||||||||
Settlements | (285 | ) | (150 | ) | ||||||||||||||||
Balance at end of period | $ | 1,263 | $ | 1,339 | ||||||||||||||||
-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. |
COMMITMENTS_AND_CONTINGENT_LIA
COMMITMENTS AND CONTINGENT LIABILITIES | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||
Commitments and Contingencies Disclosure [Text Block] | COMMITMENTS AND CONTINGENT LIABILITIES | |||||||||
Environmental Matters | ||||||||||
Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. At March 31, 2015, the Company had accrued obligations of $700 million for probable environmental remediation and restoration costs, including $74 million for the remediation of Superfund sites, and are included in "Accrued and other current liabilities" and "Other noncurrent obligations" in the consolidated balance sheets. This is management’s best estimate of the costs for remediation and restoration with respect to environmental matters for which the Company has accrued liabilities, although it is reasonably possible that the ultimate cost with respect to these particular matters could range up to approximately two and a half times that amount. Consequently, it is reasonably possible that environmental remediation and restoration costs in excess of amounts accrued could have a material impact on the Company’s results of operations, financial condition and cash flows. It is the opinion of the Company’s management, however, that the possibility is remote that costs in excess of the range disclosed will have a material impact on the Company’s results of operations, financial condition and cash flows. Inherent uncertainties exist in these estimates primarily due to unknown conditions, changing governmental regulations and legal standards regarding liability, and emerging remediation technologies for handling site remediation and restoration. At December 31, 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. | ||||||||||
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 of the 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 Tittabawasee 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 6 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 March 31, 2015, the accrual for these off-site matters was $69 million (included in the total accrued obligation of $700 million at March 31, 2015). At December 31, 2014, the Company had an accrual for these off-site matters of $62 million (included in the total accrued obligation of $706 million at December 31, 2014). | ||||||||||
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 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, estimated 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 Carbide'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. 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. | ||||||||||
Based on Union Carbide’s review of 2015 activity, Union Carbide determined that no adjustment to the accrual was required at March 31, 2015. Union Carbide’s asbestos-related liability for pending and future claims was $500 million at March 31, 2015. Approximately 20 percent of the recorded liability related to pending claims and approximately 80 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 March 31, 2015 and December 31, 2014. | ||||||||||
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 | Mar 31, | Dec 31, | ||||||||
In millions | 2015 | 2014 | ||||||||
Receivables for defense and resolution costs – carriers with settlement agreements | $ | 54 | $ | 69 | ||||||
Receivables for insurance recoveries – carriers without settlement agreements | 10 | 10 | ||||||||
Total | $ | 64 | $ | 79 | ||||||
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 was $24 million in the first quarter of 2015 ($25 million in the first quarter of 2014) 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. | ||||||||||
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. | ||||||||||
On March 9, 2015, the Company filed a petition for writ of certiorari ("Writ Petition") with the U.S. Supreme Court ("Supreme Court"), seeking judicial review by the 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 Supreme Court will accept the Writ Petition for review, there are several compelling reasons why the 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 will be vacated. Specifically, it is the Company's position that the Tenth Circuit decision violates the law as expressed by the 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. In April 2015, six amici filed Amicus Briefs in support of Dow’s Writ Petition. The class plaintiffs' opposition brief is due May 11, 2015, and pursuant to the current Supreme Court schedule, it is reasonably anticipated the Supreme Court may issue a decision on the Writ Petition by the end of June 2015. | ||||||||||
The Company has consistently denied plaintiffs’ allegations of price fixing and, as outlined above, the Company will continue to vigorously defend this litigation. As with any litigation and based on various factors, the Company may from time to time pursue confidential settlement negotiations to resolve the matter. As part of the Company’s review of the jury verdict, the resulting judgment and the Court of Appeals’ opinion, 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 Supreme Court. Based on this review and the reasons stated above, the Company believes the judgment and decision 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 | ||||||||||
A summary of the Company's purchase commitments can be found in Note 14 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014. There have been no material changes to the purchase commitments since December 31, 2014. | ||||||||||
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 March 31, 2015 | Final | Maximum Future | Recorded | |||||||
In millions | Expiration | Payments | Liability | |||||||
Guarantees | 2021 | $ | 4,979 | $ | 132 | |||||
Residual value guarantees | 2024 | 900 | 120 | |||||||
Total guarantees | $ | 5,879 | $ | 252 | ||||||
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 | ||||||||||
Guarantees arise during the ordinary course of business from relationships with customers and nonconsolidated affiliates when the Company undertakes an obligation to guarantee the performance of others (via delivery of cash or other assets) if specified triggering events occur. With guarantees, such as commercial or financial contracts, non-performance by the guaranteed party triggers the obligation of the Company to make payments to the beneficiary of the guarantee. The majority of the Company’s guarantees relate to debt of nonconsolidated affiliates, which have expiration dates ranging from less than one year to six 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 $11.1 billion of Total Project Financing outstanding at March 31, 2015 ($10.5 billion at December 31, 2014). 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. | ||||||||||
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: | ||||||||||
Warranty Accrual | Mar 31, | 31-Dec-14 | ||||||||
In millions | 2015 | |||||||||
Balance at January 1 | $ | 107 | $ | 24 | ||||||
Accruals related to existing warranties | 2 | 104 | ||||||||
Settlements | (6 | ) | (21 | ) | ||||||
Balance at end of period | $ | 103 | $ | 107 | ||||||
Asset Retirement Obligations | ||||||||||
The Company has recognized asset retirement obligations for the following activities: demolition and remediation activities at manufacturing and administrative sites primarily in the United States, Canada, Brazil, Argentina 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 primarily in the United States, Canada, Argentina and Europe. | ||||||||||
The aggregate carrying amount of asset retirement obligations recognized by the Company was $89 million at March 31, 2015 and $84 million at December 31, 2014. The discount rate used to calculate the Company’s asset retirement obligations was 1.48 percent at March 31, 2015 and 1.48 percent at December 31, 2014. These obligations are included in the consolidated balance sheets as "Accrued and other current liabilities" and "Other noncurrent obligations." | ||||||||||
The Company has not recognized conditional asset retirement obligations for which a fair value cannot be reasonably estimated in its consolidated financial statements. It is the opinion of the Company’s management that the possibility is remote that such conditional asset retirement obligations, when estimable, will have a material impact on the Company’s consolidated financial statements based on current costs. |
TRANSFERS_OF_FINANCIAL_ASSETS
TRANSFERS OF FINANCIAL ASSETS | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Transfers and Servicing [Abstract] | ||||||||
TRANSFERS OF FINANCIAL ASSETS | 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. | ||||||||
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 | Mar 31, | Dec 31, | ||||||
In millions | 2015 | 2014 | ||||||
Carrying value of interests held | $ | 1,263 | $ | 1,328 | ||||
Percentage of anticipated credit losses | 0.34 | % | 0.35 | % | ||||
Impact to carrying value - 10% adverse change | $ | 1 | $ | 1 | ||||
Impact to carrying value - 20% adverse change | $ | 2 | $ | 2 | ||||
Credit losses, net of any recoveries, on receivables sold were insignificant during the three-month periods ended March 31, 2015 and March 31, 2014. | ||||||||
Following is an analysis of certain cash flows between the Company and the conduits: | ||||||||
Cash Proceeds | Three Months Ended | |||||||
In millions | Mar 31, | Mar 31, | ||||||
2015 | 2014 | |||||||
Sale of receivables | $ | 12 | $ | — | ||||
Collections reinvested in revolving receivables | $ | 5,461 | $ | 6,189 | ||||
Interests in conduits (1) | $ | 285 | $ | 150 | ||||
-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 | Mar 31, | Dec 31, | ||||||
In millions | 2015 | 2014 | ||||||
Delinquencies on sold receivables still outstanding | $ | 113 | $ | 133 | ||||
Trade accounts receivable outstanding and derecognized | $ | 2,524 | $ | 2,607 | ||||
NOTES_PAYABLE_LONGTERM_DEBT_AN
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES | NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES | ||||||||||||||
Notes Payable | Mar 31, | Dec 31, | |||||||||||||
In millions | 2015 | 2014 | |||||||||||||
Notes payable to banks and other lenders | $ | 351 | $ | 353 | |||||||||||
Notes payable to related companies | 124 | 189 | |||||||||||||
Notes payable trade | 7 | 9 | |||||||||||||
Total notes payable | $ | 482 | $ | 551 | |||||||||||
Period-end average interest rates | 4.53 | % | 4.08 | % | |||||||||||
Long-Term Debt | 2015 | Mar 31, | 2014 | Dec 31, | |||||||||||
Average | 2015 | Average | 2014 | ||||||||||||
In millions | Rate | Rate | |||||||||||||
Promissory notes and debentures: | |||||||||||||||
Final maturity 2015 | 2.74 | % | $ | 60 | 2.74 | % | $ | 60 | |||||||
Final maturity 2016 | 2.52 | % | 805 | 2.52 | % | 805 | |||||||||
Final maturity 2017 | 5.66 | % | 489 | 5.66 | % | 489 | |||||||||
Final maturity 2018 | 5.44 | % | 567 | 5.44 | % | 567 | |||||||||
Final maturity 2019 | 8.41 | % | 2,168 | 8.41 | % | 2,168 | |||||||||
Final maturity 2020 | 4.37 | % | 1,877 | 4.37 | % | 1,877 | |||||||||
Final maturity 2021 and thereafter | 5.31 | % | 10,186 | 5.31 | % | 10,186 | |||||||||
Other facilities: | |||||||||||||||
U.S. dollar loans, various rates and maturities | 1.39 | % | 461 | 1.38 | % | 461 | |||||||||
Foreign currency loans, various rates and maturities | 3.01 | % | 994 | 3.01 | % | 1,013 | |||||||||
Medium-term notes, varying maturities through 2025 | 3.51 | % | 1,620 | 3.55 | % | 1,528 | |||||||||
Tax-exempt bonds, varying maturities through 2038 | 5.66 | % | 343 | 5.66 | % | 343 | |||||||||
Capital lease obligations | — | 81 | — | 85 | |||||||||||
Unamortized debt discount | — | (344 | ) | — | (350 | ) | |||||||||
Long-term debt due within one year | — | (1,440 | ) | — | (394 | ) | |||||||||
Long-term debt | — | $ | 17,867 | — | $ | 18,838 | |||||||||
Annual Installments on Long-Term Debt | |||||||||||||||
For Next Five Years at March 31, 2015 | |||||||||||||||
In millions | |||||||||||||||
2015 | $ | 380 | |||||||||||||
2016 | $ | 1,373 | |||||||||||||
2017 | $ | 773 | |||||||||||||
2018 | $ | 935 | |||||||||||||
2019 | $ | 2,579 | |||||||||||||
2020 | $ | 2,073 | |||||||||||||
2015 Activity | |||||||||||||||
During the first three months of 2015, the Company issued $93 million aggregate principal amount of InterNotes and approximately $3 million of long-term debt (net of $5 million of repayments) was entered into by consolidated variable interest entities. | |||||||||||||||
2014 Activity | |||||||||||||||
During the first three months of 2014, the Company issued $99 million aggregate principal amount of InterNotes and approximately $26 million of long-term debt (net of $5 million of repayments) was entered into by consolidated variable interest entities. The Company also repaid $346 million of long-term debt related to the purchase of an ethylene production facility (see Note 11 for additional information). | |||||||||||||||
Available Credit Facilities | |||||||||||||||
The following table summarizes the Company's credit facilities: | |||||||||||||||
Committed and Available Credit Facilities at March 31, 2015 | |||||||||||||||
In millions | Effective Date | Committed Credit | Credit Available | Maturity Date | Interest | ||||||||||
Five Year Competitive Advance and Revolving Credit Facility (1) | Mar-15 | $ | 5,000 | $ | 5,000 | Mar-20 | Floating rate | ||||||||
Bilateral Revolving Credit Facility | Mar-13 | 100 | 100 | Mar-16 | 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 | $ | 6,300 | $ | 6,000 | |||||||||||
-1 | The prior credit facility was terminated and replaced with a new credit facility on March 24, 2015. | ||||||||||||||
Debt Covenants and Default Provisions | |||||||||||||||
There were no material changes to the debt covenants and default provisions related to the Company's outstanding long-term debt and primary, private credit agreements in the first three months of 2015. For additional information on the Company's debt covenants and default provisions, see Note 16 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014. |
VARIABLE_INTEREST_ENTITIES
VARIABLE INTEREST ENTITIES | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
VARIABLE INTEREST ENTITIES [Abstract] | ||||||||
Variable Interest Entities Disclosure [Text Block] | VARIABLE INTEREST ENTITIES | |||||||
A complete description of the Company's variable interest entities can be found in Note 19 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. | ||||||||
Consolidated Variable Interest Entities | ||||||||
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. In the first quarter of 2014, the Company classified $346 million as "Payments on long-term debt" and $4 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 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 the entities’ assets and liabilities included in the Company’s consolidated balance sheets at March 31, 2015 and December 31, 2014: | ||||||||
Assets and Liabilities of Consolidated VIEs | Mar 31, | Dec 31, | ||||||
In millions | 2015 | 2014 | ||||||
Cash and cash equivalents (1) | $ | 244 | $ | 190 | ||||
Other current assets | 162 | 175 | ||||||
Property | 2,708 | 2,726 | ||||||
Other noncurrent assets | 99 | 85 | ||||||
Total assets (2) | $ | 3,213 | $ | 3,176 | ||||
Current liabilities (nonrecourse 2015: $362; 2014: $391) | $ | 365 | $ | 394 | ||||
Long-term debt (nonrecourse 2015: $1,227; 2014: $1,229) | 1,252 | 1,260 | ||||||
Other noncurrent liabilities (nonrecourse 2015: $58; 2014: $62) | 58 | 62 | ||||||
Total liabilities | $ | 1,675 | $ | 1,716 | ||||
-1 | Includes $42 million at March 31, 2015 ($20 million at December 31, 2014) restricted for the debt servicing and operational expenses of a manufacturing facility. | |||||||
-2 | All assets were restricted at March 31, 2015 and December 31, 2014. | |||||||
In addition, the carrying amounts of assets and liabilities included in the Company’s consolidated balance sheets pertaining to an entity created to monetize accounts receivable of select European entities were current assets of $79 million (zero restricted) at March 31, 2015 ($99 million, zero restricted, at December 31, 2014) and current liabilities were $1 million (zero nonrecourse) at March 31, 2015 (less than $1 million, zero nonrecourse at December 31, 2014). | ||||||||
Amounts presented in the consolidated balance sheets and the preceding table as restricted assets or nonrecourse obligations relating to consolidated VIEs at March 31, 2015 and December 31, 2014 are adjusted for intercompany eliminations and parental guarantees. | ||||||||
Nonconsolidated Variable Interest Entity | ||||||||
At March 31, 2015, the Company’s investment in its crude acrylic acid joint venture was $139 million ($162 million at December 31, 2014) and is classified as “Investment in nonconsolidated affiliates” in the consolidated balance sheets, representing the Company’s maximum exposure to loss. |
PENSION_PLANS_AND_OTHER_POSTRE
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | |||||||
Net Periodic Benefit Cost for All Significant Plans | Three Months Ended | |||||||
In millions | Mar 31, | Mar 31, | ||||||
2015 | 2014 | |||||||
Defined Benefit Pension Plans: | ||||||||
Service cost | $ | 125 | $ | 103 | ||||
Interest cost | 244 | 276 | ||||||
Expected return on plan assets | (344 | ) | (332 | ) | ||||
Amortization of prior service cost (credit) | (7 | ) | 6 | |||||
Amortization of net loss | 184 | 126 | ||||||
Net settlements (1) | — | 2 | ||||||
Net periodic benefit cost | $ | 202 | $ | 181 | ||||
Other Postretirement Benefits: | ||||||||
Service cost | $ | 4 | $ | 4 | ||||
Interest cost | 15 | 18 | ||||||
Amortization of prior service credit | (1 | ) | — | |||||
Amortization of net gain | (3 | ) | (4 | ) | ||||
Net periodic benefit cost | $ | 15 | $ | 18 | ||||
-1 | The 2014 impact relates to settlements associated with the wind-up of a Canadian pension plan. | |||||||
The Company's funding policy is to contribute to defined benefit pension plans in the United States and a number of other countries when pension laws and/or economics either require or encourage funding. Dow expects to contribute approximately $850 million to its pension plans in 2015. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION | ||||||
A complete description of the Company's stock-based compensation plans can be found in Note 20 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. | |||||||
Employee Stock Purchase Plan | |||||||
The Company grants stock-based compensation to employees under The Dow Chemical Company 2012 Employee Stock Purchase Plan (the "2012 ESPP"). Under the 2015 annual offering of the 2012 ESPP, most employees were eligible to purchase shares of common stock of the Company valued at up to 10 percent of their annual base salary. The value is determined using the plan price multiplied by the number of shares subscribed to by the employee. The plan price of the stock is set at an amount equal to at least 85 percent of the fair market value (closing price) of the common stock on a date during the fourth quarter of the year prior to the offering, or the average fair market value (closing price) of the common stock over a period during the fourth quarter of the year prior to the offering, in each case, specified by the plan administrator. | |||||||
During the first quarter of 2015, employees subscribed to the right to purchase 3.2 million shares of the Company's common stock with a weighted-average exercise price of $41.49 per share and a weighted-average fair value of $4.62 per share under the 2012 ESPP. | |||||||
Stock Incentive Plan | |||||||
The Company also grants stock-based compensation to employees and non-employee directors under The Dow Chemical Company 2012 Stock Incentive Plan and The Dow Chemical Company Amended and Restated 2012 Stock Incentive Plan (collectively, the "2012 Plan"). Most of the Company's stock-based compensation awards are granted in the first quarter of each year. During the first quarter of 2015, the Company granted the following stock-based compensation awards to employees under the 2012 Plan: | |||||||
• | 3.0 million stock options with a weighted-average exercise price of $49.44 per share and a weighted-average fair value of $11.61 per share; | ||||||
• | 2.1 million shares of deferred stock with a weighted-average fair value of $49.42 per share; and | ||||||
• | 2.3 million shares of performance deferred stock with a weighted-average fair value of $59.08 per share. | ||||||
Total unrecognized compensation cost at March 31, 2015 is provided in the following table: | |||||||
Total Unrecognized Compensation Cost at March 31, 2015 | |||||||
In millions | Unrecognized | Weighted-average | |||||
Compensation | Recognition | ||||||
Cost | Period (Years) | ||||||
ESPP purchase rights | $ | 8 | 0.63 | ||||
Unvested stock options | $ | 61 | 0.75 | ||||
Deferred stock awards | $ | 161 | 0.96 | ||||
Performance deferred stock awards | $ | 170 | 0.93 | ||||
EARNINGS_PER_SHARE_CALCULATION
EARNINGS PER SHARE CALCULATIONS | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
EARNINGS PER SHARE CALCULATIONS | EARNINGS PER SHARE CALCULATIONS | |||||||
The following tables provide the earnings per share calculations for the three-month periods ended March 31, 2015 and 2014: | ||||||||
Net Income for Earnings Per Share Calculations - Basic | Three Months Ended | |||||||
In millions | Mar 31, | Mar 31, | ||||||
2015 | 2014 | |||||||
Net income attributable to The Dow Chemical Company | $ | 1,478 | $ | 1,049 | ||||
Preferred stock dividends | (85 | ) | (85 | ) | ||||
Net income attributable to participating securities (1) | (10 | ) | (8 | ) | ||||
Net income attributable to common stockholders | $ | 1,383 | $ | 956 | ||||
Earnings Per Share Calculations - Basic | Three Months Ended | |||||||
Dollars per share | Mar 31, | Mar 31, | ||||||
2015 | 2014 | |||||||
Net income attributable to The Dow Chemical Company | $ | 1.3 | $ | 0.88 | ||||
Preferred stock dividends | (0.07 | ) | (0.07 | ) | ||||
Net income attributable to participating securities (1) | (0.01 | ) | (0.01 | ) | ||||
Net income attributable to common stockholders | $ | 1.22 | $ | 0.8 | ||||
Net Income for Earnings Per Share Calculations - Diluted | Three Months Ended | |||||||
In millions | Mar 31, | Mar 31, | ||||||
2015 | 2014 | |||||||
Net income attributable to The Dow Chemical Company | $ | 1,478 | $ | 1,049 | ||||
Preferred stock dividends (2) | — | (85 | ) | |||||
Net income attributable to participating securities (1) | (10 | ) | (8 | ) | ||||
Net income attributable to common stockholders | $ | 1,468 | $ | 956 | ||||
Earnings Per Share Calculations - Diluted | Three Months Ended | |||||||
Dollars per share | Mar 31, | Mar 31, | ||||||
2015 | 2014 | |||||||
Net income attributable to The Dow Chemical Company | $ | 1.19 | $ | 0.87 | ||||
Preferred stock dividends (2) | — | (0.07 | ) | |||||
Net income attributable to participating securities (1) | (0.01 | ) | (0.01 | ) | ||||
Net income attributable to common stockholders | $ | 1.18 | $ | 0.79 | ||||
Share Count Information | Three Months Ended | |||||||
Shares in millions | Mar 31, | Mar 31, | ||||||
2015 | 2014 | |||||||
Weighted-average common shares - basic | 1,135.70 | 1,190.60 | ||||||
Plus dilutive effect of stock options and awards | 14.2 | 17.1 | ||||||
Plus dilutive effect of assumed conversion of preferred stock (3) | 96.8 | — | ||||||
Weighted-average common shares - diluted | 1,246.70 | 1,207.70 | ||||||
Stock options and deferred stock awards excluded from EPS calculations (4) | 6.4 | 5.7 | ||||||
-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 three-month period | |||||||
ended March 31, 2014, 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 three-month period ended | ||||||||
March 31, 2014, 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. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 three months ended March 31, 2015 and 2014: | ||||||||
Accumulated Other Comprehensive Loss | Three Months Ended | |||||||
In millions | Mar 31, | Mar 31, | ||||||
2015 | 2014 | |||||||
Unrealized Gains on Investments at beginning of year | $ | 141 | $ | 160 | ||||
Net change in unrealized gains | 12 | 18 | ||||||
Reclassification to earnings - Net Sales (net of tax of $(8), $(16)) (1) | (14 | ) | (29 | ) | ||||
Balance at end of period | $ | 139 | $ | 149 | ||||
Cumulative Translation Adjustments at beginning of year | (751 | ) | 476 | |||||
Translation adjustments | (941 | ) | (68 | ) | ||||
Reclassification to earnings - Sundry income (expense) - net | 4 | (3 | ) | |||||
Balance at end of period | $ | (1,688 | ) | $ | 405 | |||
Pension and Other Postretirement Benefit Plans at beginning of year | (7,321 | ) | (5,460 | ) | ||||
Adjustments to pension and other postretirement benefit plans (net of tax of $61, $39) (1) (2) | 125 | 81 | ||||||
Balance at end of period | $ | (7,196 | ) | $ | (5,379 | ) | ||
Accumulated Derivative Gain (Loss) at beginning of year | (86 | ) | (3 | ) | ||||
Net hedging results | (27 | ) | 3 | |||||
Reclassification to earnings - Cost of sales (net of tax of $5, $1) (1) | 18 | 1 | ||||||
Balance at end of period | $ | (95 | ) | $ | 1 | |||
Total Accumulated Other Comprehensive Loss | $ | (8,840 | ) | $ | (4,824 | ) | ||
-1 | Tax amounts are included in "Provision for income taxes" in the consolidated statements of income. | |||||||
-2 | Included in "Net periodic benefit cost." See Note 12 for additional information. |
NONCONTROLLING_INTERESTS_Nonco
NONCONTROLLING INTERESTS Noncontrolling Interests | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 11 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 three months ended March 31, 2015 and 2014: | ||||||||
Non-redeemable Noncontrolling Interests | Three Months Ended | |||||||
In millions | Mar 31, 2015 | Mar 31, 2014 | ||||||
Balance at beginning of period | $ | 931 | $ | 1,026 | ||||
Net income attributable to noncontrolling interests | 41 | 17 | ||||||
Distributions to noncontrolling interests | (9 | ) | (12 | ) | ||||
Capital contributions | 14 | 29 | ||||||
Purchases of noncontrolling interests (1) | — | (54 | ) | |||||
Transfers of redeemable noncontrolling interest | — | (27 | ) | |||||
Cumulative translation adjustments | — | 2 | ||||||
Other | — | 1 | ||||||
Balance at end of period | $ | 977 | $ | 982 | ||||
-1 | See Note 11 for additional information on variable interest entities. |
OPERATING_SEGMENTS_AND_GEOGRAP
OPERATING SEGMENTS AND GEOGRAPHIC AREAS | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
OPERATING SEGMENTS AND GEOGRAPHIC AREAS | 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 leadership appointments. The reporting changes are retrospectively reflected in the segment results for the three-month period ended March 31, 2014. | ||||||||
Operating Segment Information | Three Months Ended | |||||||
In millions | Mar 31, | Mar 31, | ||||||
2015 | 2014 | |||||||
Sales by operating segment | ||||||||
Agricultural Sciences | $ | 1,864 | $ | 2,119 | ||||
Consumer Solutions | 1,123 | 1,137 | ||||||
Infrastructure Solutions | 1,828 | 2,035 | ||||||
Performance Materials & Chemicals | 3,209 | 3,550 | ||||||
Performance Plastics | 4,269 | 5,522 | ||||||
Corporate | 77 | 98 | ||||||
Total | $ | 12,370 | $ | 14,461 | ||||
EBITDA (1) by operating segment | ||||||||
Agricultural Sciences | $ | 409 | $ | 506 | ||||
Consumer Solutions | 286 | 259 | ||||||
Infrastructure Solutions | 295 | 268 | ||||||
Performance Materials & Chemicals | 1,223 | 514 | ||||||
Performance Plastics | 985 | 966 | ||||||
Corporate | (135 | ) | (117 | ) | ||||
Total | $ | 3,063 | $ | 2,396 | ||||
Equity in earnings (losses) of nonconsolidated affiliates by operating segment (included in EBITDA) | ||||||||
Agricultural Sciences | $ | — | $ | — | ||||
Consumer Solutions | 20 | 30 | ||||||
Infrastructure Solutions | 76 | 71 | ||||||
Performance Materials & Chemicals | 55 | 91 | ||||||
Performance Plastics | 23 | 68 | ||||||
Corporate | (6 | ) | (9 | ) | ||||
Total | $ | 168 | $ | 251 | ||||
-1 | The Company uses EBITDA (which Dow defines as earnings (i.e., "Net Income") before interest, income taxes, depreciation and amortization) as its measure of profit/loss for segment reporting purposes. EBITDA by operating segment includes all operating items relating to the businesses; items that principally apply to the Company as a whole are assigned to Corporate. A reconciliation of EBITDA to "Income Before Income Taxes" is provided below. | |||||||
Reconciliation of EBITDA to “Income Before Income Taxes” | Three Months Ended | |||||||
In millions | Mar 31, | Mar 31, | ||||||
2015 | 2014 | |||||||
EBITDA | $ | 3,063 | $ | 2,396 | ||||
- Depreciation and amortization | 634 | 672 | ||||||
+ Interest income | 17 | 13 | ||||||
- Interest expense and amortization of debt discount | 241 | 246 | ||||||
Income Before Income Taxes | $ | 2,205 | $ | 1,491 | ||||
Transfers of products between operating segments are generally valued at cost. However, transfers of products to Agricultural Sciences from other segments are generally valued at market-based prices; the revenues generated by these transfers in the first three months of 2015 and 2014 were immaterial and eliminated in consolidation. | ||||||||
Geographic Areas | Three Months Ended | |||||||
In millions | Mar 31, | Mar 31, | ||||||
2015 | 2014 | |||||||
Sales by geographic area | ||||||||
United States | $ | 4,327 | $ | 4,791 | ||||
Europe, Middle East, Africa and India | 3,974 | 5,215 | ||||||
Rest of World | 4,069 | 4,455 | ||||||
Total | $ | 12,370 | $ | 14,461 | ||||
REVERSE_MORRIS_TRUST_TRANSACTI
REVERSE MORRIS TRUST TRANSACTION (Notes) | 3 Months Ended |
Mar. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | REVERSE MORRIS TRUST TRANSACTION |
On March 27, 2015, the Company and Olin Corporation ("Olin") announced the signing of definitive agreements under which (i) the Company will transfer, directly or indirectly, its U.S. Gulf Coast Chlor-Alkali and Vinyl, Global Chlorinated Organics and Global Epoxy businesses ("chlorine value chain") into a new company ("Spinco"), (ii) the shares of Spinco will either be exchanged for shares of the Company pursuant to a public exchange offer, distributed to Dow shareholders as a dividend, or a combination thereof, and (iii) Spinco will merge with a wholly owned subsidiary of Olin. Upon completion of these transactions, Dow shareholders that receive shares of Spinco will own at least 50.5 percent of the outstanding shares of Olin common stock and existing Olin shareholders will hold the remaining outstanding shares of Olin common stock. The transaction has a value of approximately $5 billion, which includes approximately $2 billion in cash and Spinco debt instruments to be distributed to the Company by Spinco, approximately $800 million of assumed debt, pension and other liabilities, and approximately $2.2 billion in shares of Olin common stock to be received by participating Dow shareholders (valued based upon Olin's closing stock price on March 25, 2015). The Company will also enter into multiple site, transitional and other service agreements, supply and purchase agreements, real estate agreements, technology licenses and intellectual property agreements with Olin as a result of the transaction. The transaction is subject to Olin shareholder approval, customary regulatory approvals and tax authority rulings and is expected to close by year-end 2015. | |
During the three-month period ended March 31, 2015, the Company incurred pretax charges of $26 million for nonrecurring transaction costs associated with the planned separation of the chlorine value chain, consisting primarily of financial and professional advisory fees, legal fees and information systems infrastructure costs. The charges were included in "Sundry income (expense) - net" in the consolidated statements of income and reflected in Corporate. | |
The Company has evaluated the pending divestiture of the chlorine value chain under Accounting Standards Update 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." In the quarter the transaction is completed, the Company does not expect to report the historical results of the chlorine value chain as discontinued operations in Dow's financial statements, as the divestiture of these businesses does not represent a strategic shift that will have a major effect on the Company's operations and financial results. |
ACQUISITIONS_AND_DIVESTITURES_
ACQUISITIONS AND DIVESTITURES (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Significant Acquisitions and Disposals [Line Items] | ||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | ||||
Assets Acquired and Liabilities Assumed | On January 30, | |||
In millions | 2015 | |||
Purchase Price | $ | 169 | ||
Fair Value of Assets Acquired | ||||
Inventories | $ | 24 | ||
Property | 35 | |||
Other intangible assets (1) | 81 | |||
Total Assets Acquired | $ | 140 | ||
Fair Value of Liabilities Assumed | ||||
Accrued and other current liabilities | $ | 2 | ||
Total Liabilities Assumed | $ | 2 | ||
Goodwill | $ | 31 | ||
-1 | Includes $14 million of trademarks, $1 million of customer-related intangibles, $20 million of germplasm and $46 million of in-process research and development. See Note 5 for additional information. | |||
Sodium Borohydride business [Member] | ||||
Significant Acquisitions and Disposals [Line Items] | ||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | ||||
SBH Assets and Liabilities Divested on January 30, 2015 | Performance Materials & Chemicals | |||
In millions | ||||
Inventories | $ | 23 | ||
Property | 21 | |||
Goodwill | 45 | |||
Other intangible assets | 75 | |||
Total assets divested | $ | 164 | ||
Components of accumulated other comprehensive loss divested | $ | 2 | ||
Net carrying value divested | $ | 166 | ||
ANGUS Chemical Company [Member] | ||||
Significant Acquisitions and Disposals [Line Items] | ||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | ||||
ANGUS Assets and Liabilities Divested on February 2, 2015 | Performance Materials & Chemicals | |||
In millions | ||||
Current assets | $ | 124 | ||
Property | 101 | |||
Goodwill | 292 | |||
Other assets | 8 | |||
Total assets divested | $ | 525 | ||
Current liabilities | $ | 17 | ||
Other noncurrent liabilities | 37 | |||
Total liabilities divested | $ | 54 | ||
Components of accumulated other comprehensive loss divested | $ | 10 | ||
Net carrying value divested | $ | 481 | ||
INVENTORIES_Tables
INVENTORIES (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of Inventory, Current [Table Text Block] | ||||||||
Inventories | Mar 31, 2015 | Dec 31, 2014 | ||||||
In millions | ||||||||
Finished goods | $ | 4,597 | $ | 4,547 | ||||
Work in process | 1,832 | 1,905 | ||||||
Raw materials | 814 | 797 | ||||||
Supplies | 844 | 852 | ||||||
Total inventories | $ | 8,087 | $ | 8,101 | ||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Goodwill By Operating Segment | ||||||||||||||||||||||||
Goodwill | Agricultural Sciences | Consumer Solutions | Infrastructure Solutions | Performance | Performance Plastics | Total | ||||||||||||||||||
In millions | Materials & Chemicals | |||||||||||||||||||||||
Net goodwill at Dec 31, 2014 | $ | 1,558 | $ | 4,389 | $ | 4,451 | $ | 809 | $ | 1,425 | $ | 12,632 | ||||||||||||
Divestiture of ANGUS Chemical Company | — | — | — | (292 | ) | — | (292 | ) | ||||||||||||||||
Divestiture of the Sodium Borohydride business | — | — | — | (45 | ) | — | (45 | ) | ||||||||||||||||
Goodwill related to the Coodetec acquisition | 31 | — | — | — | — | 31 | ||||||||||||||||||
Foreign currency impact | — | (17 | ) | (79 | ) | (11 | ) | (36 | ) | (143 | ) | |||||||||||||
Net goodwill at Mar 31, 2015 | $ | 1,589 | $ | 4,372 | $ | 4,372 | $ | 461 | $ | 1,389 | $ | 12,183 | ||||||||||||
Other Intangible Assets | ||||||||||||||||||||||||
Other Intangible Assets | At March 31, 2015 | At December 31, 2014 | ||||||||||||||||||||||
In millions | Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Intangible assets with finite lives: | ||||||||||||||||||||||||
Licenses and intellectual property | $ | 1,773 | $ | (1,092 | ) | $ | 681 | $ | 1,777 | $ | (1,060 | ) | $ | 717 | ||||||||||
Patents | 120 | (107 | ) | 13 | 122 | (108 | ) | 14 | ||||||||||||||||
Software | 1,283 | (655 | ) | 628 | 1,287 | (648 | ) | 639 | ||||||||||||||||
Trademarks | 686 | (418 | ) | 268 | 685 | (409 | ) | 276 | ||||||||||||||||
Customer-related | 3,259 | (1,341 | ) | 1,918 | 3,443 | (1,366 | ) | 2,077 | ||||||||||||||||
Other | 175 | (144 | ) | 31 | 158 | (146 | ) | 12 | ||||||||||||||||
Total other intangible assets, finite lives | $ | 7,296 | $ | (3,757 | ) | $ | 3,539 | $ | 7,472 | $ | (3,737 | ) | $ | 3,735 | ||||||||||
IPR&D (1), indefinite lives | 79 | — | 79 | 33 | — | 33 | ||||||||||||||||||
Total other intangible assets | $ | 7,375 | $ | (3,757 | ) | $ | 3,618 | $ | 7,505 | $ | (3,737 | ) | $ | 3,768 | ||||||||||
-1 | In-process research and development (“IPR&D”) purchased in a business combination. | |||||||||||||||||||||||
Schedule of Amortization Expense of Intangible Assets | ||||||||||||||||||||||||
Amortization Expense | Three Months Ended | |||||||||||||||||||||||
In millions | Mar 31, 2015 | Mar 31, 2014 | ||||||||||||||||||||||
Other intangible assets, excluding software | $ | 102 | $ | 114 | ||||||||||||||||||||
Software, included in “Cost of sales” | $ | 18 | $ | 16 | ||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ||||||||||||||||||||||||
Estimated Amortization Expense | ||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||
2015 | $ | 480 | ||||||||||||||||||||||
2016 | $ | 465 | ||||||||||||||||||||||
2017 | $ | 434 | ||||||||||||||||||||||
2018 | $ | 414 | ||||||||||||||||||||||
2019 | $ | 350 | ||||||||||||||||||||||
2020 | $ | 327 | ||||||||||||||||||||||
FINANCIAL_INSTRUMENTS_Tables
FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||
Financial Instruments [Abstact] | ||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||||||||||||
At March 31, 2015 | At December 31, 2014 | |||||||||||||||||||||||||||||||
In millions | Cost | Gain | Loss | Fair | Cost | Gain | Loss | Fair | ||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||
Marketable securities: (1) | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
Government debt (2) | $ | 517 | $ | 31 | $ | — | $ | 548 | $ | 559 | $ | 26 | $ | (1 | ) | $ | 584 | |||||||||||||||
Corporate bonds | 677 | 54 | (1 | ) | 730 | 654 | 45 | (2 | ) | 697 | ||||||||||||||||||||||
Total debt securities | $ | 1,194 | $ | 85 | $ | (1 | ) | $ | 1,278 | $ | 1,213 | $ | 71 | $ | (3 | ) | $ | 1,281 | ||||||||||||||
Equity securities | 557 | 164 | (19 | ) | 702 | 566 | 177 | (15 | ) | 728 | ||||||||||||||||||||||
Total marketable securities | $ | 1,751 | $ | 249 | $ | (20 | ) | $ | 1,980 | $ | 1,779 | $ | 248 | $ | (18 | ) | $ | 2,009 | ||||||||||||||
Long-term debt including debt due within one year (3) | $ | (19,307 | ) | $ | 3 | $ | (2,606 | ) | $ | (21,910 | ) | $ | (19,232 | ) | $ | 100 | $ | (2,318 | ) | $ | (21,450 | ) | ||||||||||
Derivatives relating to: | ||||||||||||||||||||||||||||||||
Interest rates | $ | — | $ | — | $ | (12 | ) | $ | (12 | ) | $ | — | $ | — | $ | (12 | ) | $ | (12 | ) | ||||||||||||
Commodities (4) | $ | — | $ | 5 | $ | (164 | ) | $ | (159 | ) | $ | — | $ | 3 | $ | (81 | ) | $ | (78 | ) | ||||||||||||
Foreign currency | $ | — | $ | 23 | $ | (139 | ) | $ | (116 | ) | $ | — | $ | 26 | $ | (71 | ) | $ | (45 | ) | ||||||||||||
-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 hedge adjustments of $20 million at March 31, 2015 and $21 million at December 31, 2014. | |||||||||||||||||||||||||||||||
-4 | Presented net of cash collateral, as disclosed in Note 7. | |||||||||||||||||||||||||||||||
Investing Results | ||||||||||||||||||||||||||||||||
Investing Results | Three Months Ended | |||||||||||||||||||||||||||||||
In millions | Mar 31, | Mar 31, | ||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
Proceeds from sales of available-for-sale securities | $ | 114 | $ | 208 | ||||||||||||||||||||||||||||
Gross realized gains | $ | 23 | $ | 46 | ||||||||||||||||||||||||||||
Gross realized losses | $ | (1 | ) | $ | (1 | ) | ||||||||||||||||||||||||||
Contractual Maturities of Debt Securities | ||||||||||||||||||||||||||||||||
Contractual Maturities of Debt Securities | ||||||||||||||||||||||||||||||||
at March 31, 2015 | ||||||||||||||||||||||||||||||||
In millions | Amortized Cost | Fair Value | ||||||||||||||||||||||||||||||
Within one year | $ | 17 | $ | 17 | ||||||||||||||||||||||||||||
One to five years | 468 | 491 | ||||||||||||||||||||||||||||||
Six to ten years | 511 | 542 | ||||||||||||||||||||||||||||||
After ten years | 198 | 228 | ||||||||||||||||||||||||||||||
Total | $ | 1,194 | $ | 1,278 | ||||||||||||||||||||||||||||
Schedule Fair Values of Derivative Instruments | ||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments | Balance Sheet Classification | Mar 31, | Dec 31, | |||||||||||||||||||||||||||||
In millions | 2015 | 2014 | ||||||||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||||||||||
Commodities | Other current assets | $ | 2 | $ | 4 | |||||||||||||||||||||||||||
Foreign currency | Accounts and notes receivable – Other | 48 | 25 | |||||||||||||||||||||||||||||
Total derivatives designated as hedges | $ | 50 | $ | 29 | ||||||||||||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||||||||||
Commodities | Other current assets | $ | 4 | $ | 2 | |||||||||||||||||||||||||||
Foreign currency | Accounts and notes receivable – Other | 64 | 91 | |||||||||||||||||||||||||||||
Total derivatives not designated as hedges | $ | 68 | $ | 93 | ||||||||||||||||||||||||||||
Total asset derivatives | $ | 118 | $ | 122 | ||||||||||||||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||||||||||
Derivatives designated as hedges: | ||||||||||||||||||||||||||||||||
Interest rates | Accounts payable – Other | $ | 12 | $ | 12 | |||||||||||||||||||||||||||
Commodities | Accounts payable – Other | 165 | 106 | |||||||||||||||||||||||||||||
Foreign currency | Accounts payable – Other | 1 | — | |||||||||||||||||||||||||||||
Total derivatives designated as hedges | $ | 178 | $ | 118 | ||||||||||||||||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||||||||||||||||||||
Commodities | Accounts payable – Other | $ | 2 | $ | 2 | |||||||||||||||||||||||||||
Foreign currency | Accounts payable – Other | 227 | 161 | |||||||||||||||||||||||||||||
Total derivatives not designated as hedges | $ | 229 | $ | 163 | ||||||||||||||||||||||||||||
Total liability derivatives | $ | 407 | $ | 281 | ||||||||||||||||||||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
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 March 31, 2015 | 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) | $ | — | $ | 3,471 | $ | — | $ | — | $ | 3,471 | ||||||||||
Interests in trade accounts receivable conduits (3) | — | — | 1,263 | — | 1,263 | |||||||||||||||
Equity securities (4) | 666 | 36 | — | — | 702 | |||||||||||||||
Debt securities: (4) | ||||||||||||||||||||
Government debt (5) | — | 548 | — | — | 548 | |||||||||||||||
Corporate bonds | — | 730 | — | — | 730 | |||||||||||||||
Derivatives relating to: (6) | ||||||||||||||||||||
Commodities | 1 | 5 | — | (1 | ) | 5 | ||||||||||||||
Foreign currency | — | 112 | — | (89 | ) | 23 | ||||||||||||||
Total assets at fair value | $ | 667 | $ | 4,902 | $ | 1,263 | $ | (90 | ) | $ | 6,742 | |||||||||
Liabilities at fair value: | ||||||||||||||||||||
Long-term debt (7) | $ | — | $ | 21,910 | $ | — | $ | — | $ | 21,910 | ||||||||||
Derivatives relating to: (6) | ||||||||||||||||||||
Interest rates | — | 12 | — | — | 12 | |||||||||||||||
Commodities | 1 | 166 | — | (3 | ) | 164 | ||||||||||||||
Foreign currency | — | 228 | — | (89 | ) | 139 | ||||||||||||||
Total liabilities at fair value | $ | 1 | $ | 22,316 | $ | — | $ | (92 | ) | $ | 22,225 | |||||||||
-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 9 for additional information on transfers of financial assets. | |||||||||||||||||||
-4 | The Company’s investments in equity and debt securities are primarily classified as available-for-sale and are included in “Other investments” in the consolidated balance sheets. | |||||||||||||||||||
-5 | U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. | |||||||||||||||||||
-6 | See Note 6 for the classification of derivatives in the consolidated balance sheets. | |||||||||||||||||||
-7 | See Note 6 for information on fair value 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, 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 9 for additional information on transfers of financial assets. | |||||||||||||||||||
-4 | The Company’s investments in equity and debt securities are primarily classified as available-for-sale and are included in “Other investments” in the consolidated balance sheets. | |||||||||||||||||||
-5 | U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. | |||||||||||||||||||
-6 | See Note 6 for the classification of derivatives in the consolidated balance sheets. | |||||||||||||||||||
-7 | See Note 6 for information on fair value 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 | Three Months Ended | |||||||||||||||||||
Interests Held in Trade Receivable Conduits (1) | Mar 31, | Mar 31, | ||||||||||||||||||
In millions | 2015 | 2014 | ||||||||||||||||||
Balance at beginning of period | $ | 1,328 | $ | 1,227 | ||||||||||||||||
Gain (loss) included in earnings (2) | 1 | (1 | ) | |||||||||||||||||
Purchases | 219 | 263 | ||||||||||||||||||
Settlements | (285 | ) | (150 | ) | ||||||||||||||||
Balance at end of period | $ | 1,263 | $ | 1,339 | ||||||||||||||||
-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. |
COMMITMENTS_AND_CONTINGENT_LIA1
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||
Receivables for Asbestos-Related Costs | ||||||||||
Receivables for Asbestos-Related Costs | Mar 31, | Dec 31, | ||||||||
In millions | 2015 | 2014 | ||||||||
Receivables for defense and resolution costs – carriers with settlement agreements | $ | 54 | $ | 69 | ||||||
Receivables for insurance recoveries – carriers without settlement agreements | 10 | 10 | ||||||||
Total | $ | 64 | $ | 79 | ||||||
Table of Annual Fixed and Determinable Portion of Take-or-Pay and Throughput Obligations | ||||||||||
Table of Guarantees by Type | ||||||||||
Guarantees at March 31, 2015 | Final | Maximum Future | Recorded | |||||||
In millions | Expiration | Payments | Liability | |||||||
Guarantees | 2021 | $ | 4,979 | $ | 132 | |||||
Residual value guarantees | 2024 | 900 | 120 | |||||||
Total guarantees | $ | 5,879 | $ | 252 | ||||||
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 | ||||||
Schedule of Product Warranty Liability [Table Text Block] | ||||||||||
Warranty Accrual | Mar 31, | 31-Dec-14 | ||||||||
In millions | 2015 | |||||||||
Balance at January 1 | $ | 107 | $ | 24 | ||||||
Accruals related to existing warranties | 2 | 104 | ||||||||
Settlements | (6 | ) | (21 | ) | ||||||
Balance at end of period | $ | 103 | $ | 107 | ||||||
TRANSFERS_OF_FINANCIAL_ASSETS_
TRANSFERS OF FINANCIAL ASSETS (Tables) (North America and Europe [Member]) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 | Mar 31, | Dec 31, | ||||||
In millions | 2015 | 2014 | ||||||
Carrying value of interests held | $ | 1,263 | $ | 1,328 | ||||
Percentage of anticipated credit losses | 0.34 | % | 0.35 | % | ||||
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 | Three Months Ended | |||||||
In millions | Mar 31, | Mar 31, | ||||||
2015 | 2014 | |||||||
Sale of receivables | $ | 12 | $ | — | ||||
Collections reinvested in revolving receivables | $ | 5,461 | $ | 6,189 | ||||
Interests in conduits (1) | $ | 285 | $ | 150 | ||||
-1 | Presented in "Operating Activities" in the consolidated statements of cash flows. | |||||||
Schedule of Quantitative Information about Derecognized Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Table Text Block] | ||||||||
Trade Accounts Receivable Sold | Mar 31, | Dec 31, | ||||||
In millions | 2015 | 2014 | ||||||
Delinquencies on sold receivables still outstanding | $ | 113 | $ | 133 | ||||
Trade accounts receivable outstanding and derecognized | $ | 2,524 | $ | 2,607 | ||||
NOTES_PAYABLE_LONGTERM_DEBT_AN1
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||
Schedule of Short-term Debt [Table Text Block] | |||||||||||||||
Notes Payable | Mar 31, | Dec 31, | |||||||||||||
In millions | 2015 | 2014 | |||||||||||||
Notes payable to banks and other lenders | $ | 351 | $ | 353 | |||||||||||
Notes payable to related companies | 124 | 189 | |||||||||||||
Notes payable trade | 7 | 9 | |||||||||||||
Total notes payable | $ | 482 | $ | 551 | |||||||||||
Period-end average interest rates | 4.53 | % | 4.08 | % | |||||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | |||||||||||||||
Long-Term Debt | 2015 | Mar 31, | 2014 | Dec 31, | |||||||||||
Average | 2015 | Average | 2014 | ||||||||||||
In millions | Rate | Rate | |||||||||||||
Promissory notes and debentures: | |||||||||||||||
Final maturity 2015 | 2.74 | % | $ | 60 | 2.74 | % | $ | 60 | |||||||
Final maturity 2016 | 2.52 | % | 805 | 2.52 | % | 805 | |||||||||
Final maturity 2017 | 5.66 | % | 489 | 5.66 | % | 489 | |||||||||
Final maturity 2018 | 5.44 | % | 567 | 5.44 | % | 567 | |||||||||
Final maturity 2019 | 8.41 | % | 2,168 | 8.41 | % | 2,168 | |||||||||
Final maturity 2020 | 4.37 | % | 1,877 | 4.37 | % | 1,877 | |||||||||
Final maturity 2021 and thereafter | 5.31 | % | 10,186 | 5.31 | % | 10,186 | |||||||||
Other facilities: | |||||||||||||||
U.S. dollar loans, various rates and maturities | 1.39 | % | 461 | 1.38 | % | 461 | |||||||||
Foreign currency loans, various rates and maturities | 3.01 | % | 994 | 3.01 | % | 1,013 | |||||||||
Medium-term notes, varying maturities through 2025 | 3.51 | % | 1,620 | 3.55 | % | 1,528 | |||||||||
Tax-exempt bonds, varying maturities through 2038 | 5.66 | % | 343 | 5.66 | % | 343 | |||||||||
Capital lease obligations | — | 81 | — | 85 | |||||||||||
Unamortized debt discount | — | (344 | ) | — | (350 | ) | |||||||||
Long-term debt due within one year | — | (1,440 | ) | — | (394 | ) | |||||||||
Long-term debt | — | $ | 17,867 | — | $ | 18,838 | |||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | |||||||||||||||
Annual Installments on Long-Term Debt | |||||||||||||||
For Next Five Years at March 31, 2015 | |||||||||||||||
In millions | |||||||||||||||
2015 | $ | 380 | |||||||||||||
2016 | $ | 1,373 | |||||||||||||
2017 | $ | 773 | |||||||||||||
2018 | $ | 935 | |||||||||||||
2019 | $ | 2,579 | |||||||||||||
2020 | $ | 2,073 | |||||||||||||
Schedule of Line of Credit Facilities [Table Text Block] | |||||||||||||||
Committed and Available Credit Facilities at March 31, 2015 | |||||||||||||||
In millions | Effective Date | Committed Credit | Credit Available | Maturity Date | Interest | ||||||||||
Five Year Competitive Advance and Revolving Credit Facility (1) | Mar-15 | $ | 5,000 | $ | 5,000 | Mar-20 | Floating rate | ||||||||
Bilateral Revolving Credit Facility | Mar-13 | 100 | 100 | Mar-16 | 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 | $ | 6,300 | $ | 6,000 | |||||||||||
VARIABLE_INTEREST_ENTITIES_Tab
VARIABLE INTEREST ENTITIES (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
VARIABLE INTEREST ENTITIES [Abstract] | ||||||||
Schedule of Variable Interest Entities [Table Text Block] | ||||||||
Assets and Liabilities of Consolidated VIEs | Mar 31, | Dec 31, | ||||||
In millions | 2015 | 2014 | ||||||
Cash and cash equivalents (1) | $ | 244 | $ | 190 | ||||
Other current assets | 162 | 175 | ||||||
Property | 2,708 | 2,726 | ||||||
Other noncurrent assets | 99 | 85 | ||||||
Total assets (2) | $ | 3,213 | $ | 3,176 | ||||
Current liabilities (nonrecourse 2015: $362; 2014: $391) | $ | 365 | $ | 394 | ||||
Long-term debt (nonrecourse 2015: $1,227; 2014: $1,229) | 1,252 | 1,260 | ||||||
Other noncurrent liabilities (nonrecourse 2015: $58; 2014: $62) | 58 | 62 | ||||||
Total liabilities | $ | 1,675 | $ | 1,716 | ||||
-1 | Includes $42 million at March 31, 2015 ($20 million at December 31, 2014) restricted for the debt servicing and operational expenses of a manufacturing facility. | |||||||
-2 | All assets were restricted at March 31, 2015 and December 31, 2014. |
PENSION_PLANS_AND_OTHER_POSTRE1
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | ||||||||
Net Periodic Benefit Cost for All Significant Plans | Three Months Ended | |||||||
In millions | Mar 31, | Mar 31, | ||||||
2015 | 2014 | |||||||
Defined Benefit Pension Plans: | ||||||||
Service cost | $ | 125 | $ | 103 | ||||
Interest cost | 244 | 276 | ||||||
Expected return on plan assets | (344 | ) | (332 | ) | ||||
Amortization of prior service cost (credit) | (7 | ) | 6 | |||||
Amortization of net loss | 184 | 126 | ||||||
Net settlements (1) | — | 2 | ||||||
Net periodic benefit cost | $ | 202 | $ | 181 | ||||
Other Postretirement Benefits: | ||||||||
Service cost | $ | 4 | $ | 4 | ||||
Interest cost | 15 | 18 | ||||||
Amortization of prior service credit | (1 | ) | — | |||||
Amortization of net gain | (3 | ) | (4 | ) | ||||
Net periodic benefit cost | $ | 15 | $ | 18 | ||||
-1 | The 2014 impact relates to settlements associated with the wind-up of a Canadian pension plan. |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||||||
Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block] | |||||||
Total Unrecognized Compensation Cost at March 31, 2015 | |||||||
In millions | Unrecognized | Weighted-average | |||||
Compensation | Recognition | ||||||
Cost | Period (Years) | ||||||
ESPP purchase rights | $ | 8 | 0.63 | ||||
Unvested stock options | $ | 61 | 0.75 | ||||
Deferred stock awards | $ | 161 | 0.96 | ||||
Performance deferred stock awards | $ | 170 | 0.93 | ||||
EARNINGS_PER_SHARE_CALCULATION1
EARNINGS PER SHARE CALCULATIONS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ||||||||
Net Income for Earnings Per Share Calculations - Basic | Three Months Ended | |||||||
In millions | Mar 31, | Mar 31, | ||||||
2015 | 2014 | |||||||
Net income attributable to The Dow Chemical Company | $ | 1,478 | $ | 1,049 | ||||
Preferred stock dividends | (85 | ) | (85 | ) | ||||
Net income attributable to participating securities (1) | (10 | ) | (8 | ) | ||||
Net income attributable to common stockholders | $ | 1,383 | $ | 956 | ||||
Earnings Per Share Calculations - Basic | Three Months Ended | |||||||
Dollars per share | Mar 31, | Mar 31, | ||||||
2015 | 2014 | |||||||
Net income attributable to The Dow Chemical Company | $ | 1.3 | $ | 0.88 | ||||
Preferred stock dividends | (0.07 | ) | (0.07 | ) | ||||
Net income attributable to participating securities (1) | (0.01 | ) | (0.01 | ) | ||||
Net income attributable to common stockholders | $ | 1.22 | $ | 0.8 | ||||
Net Income for Earnings Per Share Calculations - Diluted | Three Months Ended | |||||||
In millions | Mar 31, | Mar 31, | ||||||
2015 | 2014 | |||||||
Net income attributable to The Dow Chemical Company | $ | 1,478 | $ | 1,049 | ||||
Preferred stock dividends (2) | — | (85 | ) | |||||
Net income attributable to participating securities (1) | (10 | ) | (8 | ) | ||||
Net income attributable to common stockholders | $ | 1,468 | $ | 956 | ||||
Earnings Per Share Calculations - Diluted | Three Months Ended | |||||||
Dollars per share | Mar 31, | Mar 31, | ||||||
2015 | 2014 | |||||||
Net income attributable to The Dow Chemical Company | $ | 1.19 | $ | 0.87 | ||||
Preferred stock dividends (2) | — | (0.07 | ) | |||||
Net income attributable to participating securities (1) | (0.01 | ) | (0.01 | ) | ||||
Net income attributable to common stockholders | $ | 1.18 | $ | 0.79 | ||||
Share Count Information | Three Months Ended | |||||||
Shares in millions | Mar 31, | Mar 31, | ||||||
2015 | 2014 | |||||||
Weighted-average common shares - basic | 1,135.70 | 1,190.60 | ||||||
Plus dilutive effect of stock options and awards | 14.2 | 17.1 | ||||||
Plus dilutive effect of assumed conversion of preferred stock (3) | 96.8 | — | ||||||
Weighted-average common shares - diluted | 1,246.70 | 1,207.70 | ||||||
Stock options and deferred stock awards excluded from EPS calculations (4) | 6.4 | 5.7 | ||||||
-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 three-month period | |||||||
ended March 31, 2014, 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 three-month period ended | ||||||||
March 31, 2014, 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. |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Schedule of Comprehensive Loss [Table Text Block] | ||||||||
Accumulated Other Comprehensive Loss | Three Months Ended | |||||||
In millions | Mar 31, | Mar 31, | ||||||
2015 | 2014 | |||||||
Unrealized Gains on Investments at beginning of year | $ | 141 | $ | 160 | ||||
Net change in unrealized gains | 12 | 18 | ||||||
Reclassification to earnings - Net Sales (net of tax of $(8), $(16)) (1) | (14 | ) | (29 | ) | ||||
Balance at end of period | $ | 139 | $ | 149 | ||||
Cumulative Translation Adjustments at beginning of year | (751 | ) | 476 | |||||
Translation adjustments | (941 | ) | (68 | ) | ||||
Reclassification to earnings - Sundry income (expense) - net | 4 | (3 | ) | |||||
Balance at end of period | $ | (1,688 | ) | $ | 405 | |||
Pension and Other Postretirement Benefit Plans at beginning of year | (7,321 | ) | (5,460 | ) | ||||
Adjustments to pension and other postretirement benefit plans (net of tax of $61, $39) (1) (2) | 125 | 81 | ||||||
Balance at end of period | $ | (7,196 | ) | $ | (5,379 | ) | ||
Accumulated Derivative Gain (Loss) at beginning of year | (86 | ) | (3 | ) | ||||
Net hedging results | (27 | ) | 3 | |||||
Reclassification to earnings - Cost of sales (net of tax of $5, $1) (1) | 18 | 1 | ||||||
Balance at end of period | $ | (95 | ) | $ | 1 | |||
Total Accumulated Other Comprehensive Loss | $ | (8,840 | ) | $ | (4,824 | ) | ||
-1 | Tax amounts are included in "Provision for income taxes" in the consolidated statements of income. | |||||||
-2 | Included in "Net periodic benefit cost." See Note 12 for additional information. |
NONCONTROLLING_INTERESTS_Nonco1
NONCONTROLLING INTERESTS Noncontrolling Interests (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Noncontrolling Interest [Abstract] | ||||||||
Noncontrolling Interests [Table Text Block] | ||||||||
Non-redeemable Noncontrolling Interests | Three Months Ended | |||||||
In millions | Mar 31, 2015 | Mar 31, 2014 | ||||||
Balance at beginning of period | $ | 931 | $ | 1,026 | ||||
Net income attributable to noncontrolling interests | 41 | 17 | ||||||
Distributions to noncontrolling interests | (9 | ) | (12 | ) | ||||
Capital contributions | 14 | 29 | ||||||
Purchases of noncontrolling interests (1) | — | (54 | ) | |||||
Transfers of redeemable noncontrolling interest | — | (27 | ) | |||||
Cumulative translation adjustments | — | 2 | ||||||
Other | — | 1 | ||||||
Balance at end of period | $ | 977 | $ | 982 | ||||
OPERATING_SEGMENTS_AND_GEOGRAP1
OPERATING SEGMENTS AND GEOGRAPHIC AREAS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Schedule of Operating Segments | ||||||||
Operating Segment Information | Three Months Ended | |||||||
In millions | Mar 31, | Mar 31, | ||||||
2015 | 2014 | |||||||
Sales by operating segment | ||||||||
Agricultural Sciences | $ | 1,864 | $ | 2,119 | ||||
Consumer Solutions | 1,123 | 1,137 | ||||||
Infrastructure Solutions | 1,828 | 2,035 | ||||||
Performance Materials & Chemicals | 3,209 | 3,550 | ||||||
Performance Plastics | 4,269 | 5,522 | ||||||
Corporate | 77 | 98 | ||||||
Total | $ | 12,370 | $ | 14,461 | ||||
EBITDA (1) by operating segment | ||||||||
Agricultural Sciences | $ | 409 | $ | 506 | ||||
Consumer Solutions | 286 | 259 | ||||||
Infrastructure Solutions | 295 | 268 | ||||||
Performance Materials & Chemicals | 1,223 | 514 | ||||||
Performance Plastics | 985 | 966 | ||||||
Corporate | (135 | ) | (117 | ) | ||||
Total | $ | 3,063 | $ | 2,396 | ||||
Equity in earnings (losses) of nonconsolidated affiliates by operating segment (included in EBITDA) | ||||||||
Agricultural Sciences | $ | — | $ | — | ||||
Consumer Solutions | 20 | 30 | ||||||
Infrastructure Solutions | 76 | 71 | ||||||
Performance Materials & Chemicals | 55 | 91 | ||||||
Performance Plastics | 23 | 68 | ||||||
Corporate | (6 | ) | (9 | ) | ||||
Total | $ | 168 | $ | 251 | ||||
-1 | The Company uses EBITDA (which Dow defines as earnings (i.e., "Net Income") before interest, income taxes, depreciation and amortization) as its measure of profit/loss for segment reporting purposes. EBITDA by operating segment includes all operating items relating to the businesses; items that principally apply to the Company as a whole are assigned to Corporate. A reconciliation of EBITDA to "Income Before Income Taxes" is provided below. | |||||||
Reconciliation of EBITDA to Income Before Income Taxes | ||||||||
Reconciliation of EBITDA to “Income Before Income Taxes” | Three Months Ended | |||||||
In millions | Mar 31, | Mar 31, | ||||||
2015 | 2014 | |||||||
EBITDA | $ | 3,063 | $ | 2,396 | ||||
- Depreciation and amortization | 634 | 672 | ||||||
+ Interest income | 17 | 13 | ||||||
- Interest expense and amortization of debt discount | 241 | 246 | ||||||
Income Before Income Taxes | $ | 2,205 | $ | 1,491 | ||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | ||||||||
Geographic Areas | Three Months Ended | |||||||
In millions | Mar 31, | Mar 31, | ||||||
2015 | 2014 | |||||||
Sales by geographic area | ||||||||
United States | $ | 4,327 | $ | 4,791 | ||||
Europe, Middle East, Africa and India | 3,974 | 5,215 | ||||||
Rest of World | 4,069 | 4,455 | ||||||
Total | $ | 12,370 | $ | 14,461 | ||||
ACQUISITIONS_AND_DIVESTITURES_1
ACQUISITIONS AND DIVESTITURES (Acquisition of Coodetec) (Details) (USD $) | 3 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Jan. 30, 2015 | |||
Business Acquisition [Line Items] | ||||||
Finite-Lived Intangible Assets, Net | $3,539 | $3,735 | ||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 79 | [1] | 33 | [1] | ||
Trademarks [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Finite-Lived Intangible Assets, Net | 268 | 276 | ||||
Customer related [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Finite-Lived Intangible Assets, Net | 1,918 | 2,077 | ||||
Other Intangible Assets [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Finite-Lived Intangible Assets, Net | 31 | 12 | ||||
Coodetec [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase Price | 169 | |||||
Payments to Acquire Businesses, Gross | 79 | |||||
Noncash or Part Noncash Acquisition, Payables Assumed | 20 | |||||
Inventories | 24 | |||||
Property | 35 | |||||
Other intangible assets | 81 | [2] | ||||
Total Assets Acquired | 140 | |||||
Accrued and other current liabiltiies | 2 | |||||
Total Liabilities Assumed | 2 | |||||
Goodwill | 31 | |||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 46 | [1] | ||||
Coodetec [Member] | Trademarks [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Finite-Lived Intangible Assets, Net | 14 | |||||
Coodetec [Member] | Customer related [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Finite-Lived Intangible Assets, Net | 1 | |||||
Coodetec [Member] | Other Intangible Assets [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Finite-Lived Intangible Assets, Net | $20 | |||||
[1] | In-process research and development (“IPR&Dâ€) purchased in a business combination. | |||||
[2] | Includes $14 million of trademarks, $1 million of customer-related intangibles, $20 million of germplasm and $46 million of in-process research and development. See Note 5 for additional information. |
ACQUISITIONS_AND_DIVESTITURES_2
ACQUISITIONS AND DIVESTITURES (Divestiture of SBH) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Jan. 30, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Inventories | $8,087 | $8,101 | |
Property | 18,066 | 18,051 | |
Goodwill | 12,183 | 12,632 | |
Other intangible assets | 3,618 | 3,768 | |
Total Assets Divested | 67,789 | 68,796 | |
Performance Materials & Chemicals [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Goodwill | 461 | 809 | |
Performance Materials & Chemicals [Member] | Sodium Borohydride business [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Group, Including Discontinued Operation, Consideration | 184 | ||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 18 | ||
Disposal Group Not Discontinued Operation Gain (Loss) On Disposal After Tax | -9 | ||
Inventories | 23 | ||
Property | 21 | ||
Goodwill | 45 | ||
Other intangible assets | 75 | ||
Total Assets Divested | 164 | ||
Components of accumulated other comprehensive loss divested | 2 | ||
Net carrying value divested | $166 |
ACQUISITIONS_AND_DIVESTITURES_3
ACQUISITIONS AND DIVESTITURES (Divestiture of Angus) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Feb. 02, 2015 |
Noncurrent receivables | $550 | $620 | |
Current assets | 24,394 | 24,267 | |
Property | 18,066 | 18,051 | |
Goodwill | 12,183 | 12,632 | |
Other noncurrent assets | 616 | 621 | |
Total Assets Divested | 67,789 | 68,796 | |
Current liabilities | 12,387 | 11,593 | |
Other noncurrent obligations | 3,259 | 3,290 | |
Performance Materials & Chemicals [Member] | |||
Goodwill | 461 | 809 | |
Performance Materials & Chemicals [Member] | ANGUS Chemical Company [Member] | |||
Disposal Group, Including Discontinued Operation, Consideration | 1,151 | ||
Noncurrent receivables | 10 | ||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 670 | ||
Current assets | 124 | ||
Property | 101 | ||
Goodwill | 292 | ||
Other noncurrent assets | 8 | ||
Total Assets Divested | 525 | ||
Current liabilities | 17 | ||
Other noncurrent obligations | 37 | ||
Total liabilities divested | 54 | ||
Components of accumulated other comprehensive loss divested | 10 | ||
Net carrying value divested | $481 |
INVENTORIES_Schedule_of_Invent
INVENTORIES (Schedule of Inventories) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Finished goods | $4,597 | $4,547 |
Work in process | 1,832 | 1,905 |
Raw materials | 814 | 797 |
Supplies | 844 | 852 |
Total inventories | 8,087 | 8,101 |
Inventory, LIFO Reserve | $326 | $569 |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Goodwill By Operating Segment) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Feb. 02, 2015 | Jan. 30, 2015 |
Goodwill [Line Items] | |||
Goodwill, Acquired During Period | $31 | ||
Goodwill [Roll Forward] | |||
Net goodwill, beginning balance | 12,632 | ||
Foreign currency impact | -143 | ||
Net goodwill, ending balance | 12,183 | ||
Agricultural Sciences [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Divested During Period | 0 | ||
Goodwill, Acquired During Period | 31 | ||
Goodwill [Roll Forward] | |||
Net goodwill, beginning balance | 1,558 | ||
Foreign currency impact | 0 | ||
Net goodwill, ending balance | 1,589 | ||
Consumer Solutions [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Divested During Period | 0 | ||
Goodwill, Acquired During Period | 0 | ||
Goodwill [Roll Forward] | |||
Net goodwill, beginning balance | 4,389 | ||
Foreign currency impact | -17 | ||
Net goodwill, ending balance | 4,372 | ||
Infrastructure Solutions [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Divested During Period | 0 | ||
Goodwill, Acquired During Period | 0 | ||
Goodwill [Roll Forward] | |||
Net goodwill, beginning balance | 4,451 | ||
Foreign currency impact | -79 | ||
Net goodwill, ending balance | 4,372 | ||
Performance Materials & Chemicals [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Acquired During Period | 0 | ||
Goodwill [Roll Forward] | |||
Net goodwill, beginning balance | 809 | ||
Foreign currency impact | -11 | ||
Net goodwill, ending balance | 461 | ||
Performance Plastics [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Divested During Period | 0 | ||
Goodwill, Acquired During Period | 0 | ||
Goodwill [Roll Forward] | |||
Net goodwill, beginning balance | 1,425 | ||
Foreign currency impact | -36 | ||
Net goodwill, ending balance | 1,389 | ||
ANGUS Chemical Company [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Divested During Period | -292 | ||
ANGUS Chemical Company [Member] | Performance Materials & Chemicals [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Divested During Period | -292 | ||
Goodwill [Roll Forward] | |||
Net goodwill, beginning balance | 292 | ||
Net goodwill, ending balance | 292 | ||
Sodium Borohydride business [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Divested During Period | -45 | ||
Sodium Borohydride business [Member] | Performance Materials & Chemicals [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Divested During Period | -45 | ||
Goodwill [Roll Forward] | |||
Net goodwill, beginning balance | 45 | ||
Net goodwill, ending balance | $45 |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Other Intangible Assets) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Goodwill and Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | $7,296 | $7,472 | ||
Intangible assets gross carrying amount | 7,375 | 7,505 | ||
Other Intangible Assets, Accumulated Amortization | -3,757 | -3,737 | ||
Finite-Lived Intangible Assets, Net | 3,539 | 3,735 | ||
Other Intangible Assets, Net | 3,618 | 3,768 | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 79 | [1] | 33 | [1] |
Licenses and intellectual property [Member] | ||||
Goodwill and Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 1,773 | 1,777 | ||
Other Intangible Assets, Accumulated Amortization | -1,092 | -1,060 | ||
Finite-Lived Intangible Assets, Net | 681 | 717 | ||
Patents [Member] | ||||
Goodwill and Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 120 | 122 | ||
Other Intangible Assets, Accumulated Amortization | -107 | -108 | ||
Finite-Lived Intangible Assets, Net | 13 | 14 | ||
Software [Member] | ||||
Goodwill and Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 1,283 | 1,287 | ||
Other Intangible Assets, Accumulated Amortization | -655 | -648 | ||
Finite-Lived Intangible Assets, Net | 628 | 639 | ||
Trademarks [Member] | ||||
Goodwill and Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 686 | 685 | ||
Other Intangible Assets, Accumulated Amortization | -418 | -409 | ||
Finite-Lived Intangible Assets, Net | 268 | 276 | ||
Customer related [Member] | ||||
Goodwill and Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 3,259 | 3,443 | ||
Other Intangible Assets, Accumulated Amortization | -1,341 | -1,366 | ||
Finite-Lived Intangible Assets, Net | 1,918 | 2,077 | ||
Other Intangible Assets [Member] | ||||
Goodwill and Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 175 | 158 | ||
Other Intangible Assets, Accumulated Amortization | -144 | -146 | ||
Finite-Lived Intangible Assets, Net | $31 | $12 | ||
[1] | In-process research and development (“IPR&Dâ€) purchased in a business combination. |
GOODWILL_AND_OTHER_INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Amortization Expense of Intangible Assets) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense, other intangible assets, excluding software | $102 | $114 |
Amortization expense, software, included in 'Cost of sales' | $18 | $16 |
GOODWILL_AND_OTHER_INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Future Amortization Expense of Intangible Assets) (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Estimated Amortization Expense, 2015 | $480 |
Estimated Amortization Expense, 2016 | 465 |
Estimated Amortization Expense, 2017 | 434 |
Estimated Amortization Expense, 2018 | 414 |
Estimated Amortization Expense, 2019 | 350 |
Estimated Amortization Expense, 2020 | $327 |
GOODWILL_AND_OTHER_INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS (Acquisition of Coodetec) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Jan. 30, 2015 | |||
In Millions, unless otherwise specified | ||||||
Business Acquisition [Line Items] | ||||||
Finite-Lived Intangible Assets, Net | $3,539 | $3,735 | ||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 79 | [1] | 33 | [1] | ||
Coodetec [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 81 | [2] | ||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 46 | [1] | ||||
Trademarks [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Finite-Lived Intangible Assets, Net | 268 | 276 | ||||
Trademarks [Member] | Coodetec [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Finite-Lived Intangible Assets, Net | 14 | |||||
Customer Lists [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Finite-Lived Intangible Assets, Net | 1,918 | 2,077 | ||||
Customer Lists [Member] | Coodetec [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Finite-Lived Intangible Assets, Net | 1 | |||||
Other Intangible Assets [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Finite-Lived Intangible Assets, Net | 31 | 12 | ||||
Other Intangible Assets [Member] | Coodetec [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Finite-Lived Intangible Assets, Net | $20 | |||||
[1] | In-process research and development (“IPR&Dâ€) purchased in a business combination. | |||||
[2] | Includes $14 million of trademarks, $1 million of customer-related intangibles, $20 million of germplasm and $46 million of in-process research and development. See Note 5 for additional information. |
FINANCIAL_INSTRUMENTS_Fair_Val
FINANCIAL INSTRUMENTS (Fair Value of Financial Instruments) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Financial Instruments [Line Items] | ||||
Fair Value Adjustments | $20 | $21 | ||
Long-term Debt [Member] | ||||
Financial Instruments [Line Items] | ||||
Financial Instruments, Cost | -19,307 | [1] | -19,232 | [1] |
Financial Instruments, Gross Unrealized Gain | 3 | 100 | ||
Financial Instruments Gross Unrealized Losses | -2,606 | -2,318 | ||
Financial Instruments, Fair Value | -21,910 | -21,450 | ||
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 | 12 | ||
Financial Instruments, Fair Value | 12 | 12 | ||
Commodity Contract [Member] | ||||
Financial Instruments [Line Items] | ||||
Financial Instruments, Cost | 0 | 0 | ||
Financial Instruments, Gross Unrealized Gain | -5 | -3 | ||
Financial Instruments Gross Unrealized Losses | 164 | [2] | 81 | [2] |
Financial Instruments, Fair Value | 159 | [2] | 78 | [2] |
Foreign Currency Contract [Member] | ||||
Financial Instruments [Line Items] | ||||
Financial Instruments, Cost | 0 | 0 | ||
Financial Instruments, Gross Unrealized Gain | -23 | -26 | ||
Financial Instruments Gross Unrealized Losses | 139 | 71 | ||
Financial Instruments, Fair Value | 116 | 45 | ||
Marketable Securities [Member] | ||||
Financial Instruments [Line Items] | ||||
Financial Instruments, Cost | -1,751 | [3] | -1,779 | [3] |
Financial Instruments, Gross Unrealized Gain | -249 | [3] | -248 | [3] |
Financial Instruments Gross Unrealized Losses | 20 | [3] | 18 | [3] |
Financial Instruments, Fair Value | -1,980 | [3] | -2,009 | [3] |
Debt Securities [Member] | ||||
Financial Instruments [Line Items] | ||||
Financial Instruments, Cost | -1,194 | [3] | -1,213 | [3] |
Financial Instruments, Gross Unrealized Gain | -85 | [3] | -71 | [3] |
Financial Instruments Gross Unrealized Losses | 1 | [3] | 3 | [3] |
Financial Instruments, Fair Value | -1,278 | [3] | -1,281 | [3] |
Equity Securities [Member] | ||||
Financial Instruments [Line Items] | ||||
Financial Instruments, Cost | -557 | [3] | -566 | [3] |
Financial Instruments, Gross Unrealized Gain | -164 | [3] | -177 | [3] |
Financial Instruments Gross Unrealized Losses | 19 | [3] | 15 | [3] |
Financial Instruments, Fair Value | -702 | [3] | -728 | [3] |
Corporate Bond Securities [Member] | Debt Securities [Member] | ||||
Financial Instruments [Line Items] | ||||
Financial Instruments, Cost | -677 | [3] | -654 | [3] |
Financial Instruments, Gross Unrealized Gain | -54 | [3] | -45 | [3] |
Financial Instruments Gross Unrealized Losses | 1 | [3] | 2 | [3] |
Financial Instruments, Fair Value | -730 | [3] | -697 | [3] |
Us Treasury and Us Government Obligations [Member] | Debt Securities [Member] | ||||
Financial Instruments [Line Items] | ||||
Financial Instruments, Cost | -517 | [3],[4] | -559 | [3],[4] |
Financial Instruments, Gross Unrealized Gain | -31 | [3],[4] | -26 | [3],[4] |
Financial Instruments Gross Unrealized Losses | 0 | [3],[4] | 1 | [3],[4] |
Financial Instruments, Fair Value | ($548) | [3],[4] | ($584) | [3],[4] |
[1] | Cost includes fair value hedge adjustments of $20 million at March 31, 2015 and $21 million at December 31, 2014. | |||
[2] | Presented net of cash collateral, as disclosed in Note 7. | |||
[3] | Included in “Other investments†in the consolidated balance sheets. | |||
[4] | U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. |
FINANCIAL_INSTRUMENTS_Investme
FINANCIAL INSTRUMENTS (Investments) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Financial Instruments [Line Items] | |||
Investing Results, Proceeds from sales of available-for-sale securities | $114 | $208 | |
Investing Results, Gross realized gains | 23 | 46 | |
Investing Results, Gross realized losses | -1 | -1 | |
Contractual Maturities of Debt Securities, Within one year, Amortized Cost | 17 | ||
Contractual Maturities of Debt Securities, One to five years, Amortized Cost | 468 | ||
Contractual Maturities of Debt Securities, Six to ten years, Amortized Cost | 511 | ||
Contractual Maturities of Debt Securities, After ten years, Amortized Cost | 198 | ||
Contractual Maturities of Debt Securities, Total, Amortized Cost | 1,194 | ||
Contractual Maturities of Debt Securities, Within one year, Fair Value | 17 | ||
Contractual Maturities of Debt Securities, One to five years, Fair Value | 491 | ||
Contractual Maturities of Debt Securities, Six to ten years, Fair Value | 542 | ||
Contractual Maturities of Debt Securities, After ten years, Fair Value | 228 | ||
Contractual Maturities of Debt Securities, Total, Fair Value | 1,278 | ||
Held-to-maturity securities | 2,102 | 1,050 | |
Investments in money market funds | 1,369 | 1,655 | |
Cost method investments, aggregate cost | 190 | 181 | |
Cost method investments, reduction in cost basis due to impairment | $0 | $5 |
FINANCIAL_INSTRUMENTS_Schedule
FINANCIAL INSTRUMENTS (Schedule of Fair Values of Derivative Instruments) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | $118 | $122 |
Derivative liability, fair value | 407 | 281 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 50 | 29 |
Derivative liability, fair value | 178 | 118 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 68 | 93 |
Derivative liability, fair value | 229 | 163 |
Accounts and Notes Receivable - Other [Member] | Designated as Hedging Instrument [Member] | Foreign Currency Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 48 | 25 |
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 | 64 | 91 |
Other Current Assets [Member] | Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 2 | 4 |
Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 4 | 2 |
Accounts Payable - Other [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 12 | 12 |
Accounts Payable - Other [Member] | Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 165 | 106 |
Accounts Payable - Other [Member] | Designated as Hedging Instrument [Member] | Foreign Currency Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 1 | 0 |
Accounts Payable - Other [Member] | Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 2 | 2 |
Accounts Payable - Other [Member] | Not Designated as Hedging Instrument [Member] | Foreign Currency Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | $227 | $161 |
FINANCIAL_INSTRUMENTS_FINANCIA
FINANCIAL INSTRUMENTS FINANCIAL INSTRUMENTS (Accounting for Derivative Instruments and Hedging Activities) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Interest Rate Contract [Member] | Scenario, Forecast [Member] | ||
Financial Instruments [Line Items] | ||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | ($4) | |
Commodity Contract [Member] | Scenario, Forecast [Member] | ||
Financial Instruments [Line Items] | ||
Price Risk Cash Flow Hedge Unrealized Gain (Loss) to be Reclassified During Next 12 Months | -37 | |
Foreign Currency Contract [Member] | Scenario, Forecast [Member] | ||
Financial Instruments [Line Items] | ||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | 61 | |
Fair Value Hedging [Member] | Interest Rate Swap [Member] | ||
Financial Instruments [Line Items] | ||
Derivative, Notional Amount | 100 | 0 |
Derivative, Gain (Loss) on Derivative, Net | $1 | $0 |
FAIR_VALUE_MEASUREMENTS_Basis_
FAIR VALUE MEASUREMENTS (Basis of Fair Value Measurements on a Recurring Basis) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Collateral Already Posted, Aggregate Fair Value | $6 | $29 | ||
Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | [1],[2] | 0 | [1],[2] |
Carrying value of interests held | 0 | [1],[3] | 0 | [1],[3] |
Assets, Fair Value Disclosure | 90 | [1] | 93 | [1] |
Long-term Debt, Fair Value | 0 | [1],[4] | 0 | [1],[4] |
Liabilities, Fair Value Disclosure | 92 | [1] | 117 | [1] |
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | [1],[5] | 0 | [1],[5] |
US Treasury and Government [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | [1],[5],[6] | 0 | [1],[5],[6] |
Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | [1],[5] | 0 | [1],[5] |
Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | [2] | 0 | [2] |
Carrying value of interests held | 0 | [3] | 0 | [3] |
Commodities, Asset | 1 | [7] | 0 | [7] |
Foreign currency, Asset | 0 | [7] | 0 | [7] |
Assets, Fair Value Disclosure | 667 | 692 | ||
Long-term Debt, Fair Value | 0 | [4] | 0 | [4] |
Interest Rate Derivative Liabilities, at Fair Value | 0 | [7] | 0 | [7] |
Commodities, Liability | 1 | [7] | 9 | [7] |
Foreign currency, Liability | 0 | [7] | 0 | [7] |
Liabilities, Fair Value Disclosure | 1 | 9 | ||
Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 666 | [5] | 692 | [5] |
Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | US Treasury and Government [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | [5],[6] | 0 | [5],[6] |
Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | [5] | 0 | [5] |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 3,471 | [2] | 2,705 | [2] |
Carrying value of interests held | 0 | [3] | 0 | [3] |
Commodities, Asset | 5 | [7] | 6 | [7] |
Foreign currency, Asset | 112 | [7] | 116 | [7] |
Assets, Fair Value Disclosure | 4,902 | 4,144 | ||
Long-term Debt, Fair Value | 21,910 | [4] | 21,450 | [4] |
Interest Rate Derivative Liabilities, at Fair Value | 12 | [7] | 12 | [7] |
Commodities, Liability | 166 | [7] | 99 | [7] |
Foreign currency, Liability | 228 | [7] | 161 | [7] |
Liabilities, Fair Value Disclosure | 22,316 | 21,722 | ||
Significant Other Observable Inputs (Level 2) [Member] | Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 36 | [5] | 36 | [5] |
Significant Other Observable Inputs (Level 2) [Member] | US Treasury and Government [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 548 | [5],[6] | 584 | [5],[6] |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 730 | [5] | 697 | [5] |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | [2] | 0 | [2] |
Carrying value of interests held | 1,263 | [3] | 1,328 | [3] |
Commodities, Asset | 0 | [7] | 0 | [7] |
Foreign currency, Asset | 0 | [7] | 0 | [7] |
Assets, Fair Value Disclosure | 1,263 | 1,328 | ||
Long-term Debt, Fair Value | 0 | [4] | 0 | [4] |
Interest Rate Derivative Liabilities, at Fair Value | 0 | [7] | 0 | [7] |
Commodities, Liability | 0 | [7] | 0 | [7] |
Foreign currency, Liability | 0 | [7] | 0 | [7] |
Liabilities, Fair Value Disclosure | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | [5] | 0 | [5] |
Significant Unobservable Inputs (Level 3) [Member] | US Treasury and Government [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | [5],[6] | 0 | [5],[6] |
Significant Unobservable Inputs (Level 3) [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | [5] | 0 | [5] |
Interest Rate Contract [Member] | Fair Value, Measurements, Recurring [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 | 0 | [1],[7] | 0 | [1],[7] |
Foreign Currency Contract [Member] | Fair Value, Measurements, Recurring [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 | 89 | [1],[7] | 90 | [1],[7] |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | -89 | [1],[7] | -90 | [1],[7] |
Commodity Contract [Member] | Fair Value, Measurements, Recurring [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 | -1 | [1],[7] | -3 | [1],[7] |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | -3 | [1],[7] | -27 | [1],[7] |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 3,471 | [2] | 2,705 | [2] |
Carrying value of interests held | 1,263 | [3] | 1,328 | [3] |
Commodities, Asset | 5 | [7] | 3 | [7] |
Foreign currency, Asset | 23 | [7] | 26 | [7] |
Assets, Fair Value Disclosure | 6,742 | 6,071 | ||
Long-term Debt, Fair Value | 21,910 | [4] | 21,450 | [4] |
Interest Rate Derivative Liabilities, at Fair Value | 12 | [7] | 12 | [7] |
Commodities, Liability | 164 | [7] | 81 | [7] |
Foreign currency, Liability | 139 | [7] | 71 | [7] |
Liabilities, Fair Value Disclosure | 22,225 | 21,614 | ||
Estimate of Fair Value Measurement [Member] | Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 702 | [5] | 728 | [5] |
Estimate of Fair Value Measurement [Member] | US Treasury and Government [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 548 | [5],[6] | 584 | [5],[6] |
Estimate of Fair Value Measurement [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | $730 | [5] | $697 | [5] |
[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 9 for additional information on transfers of financial assets. | |||
[4] | See Note 6 for information on fair value measurements of long-term debt. | |||
[5] | The Company’s investments in equity and debt securities are primarily classified as available-for-sale and are included in “Other investments†in the consolidated balance sheets. | |||
[6] | U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. | |||
[7] | See Note 6 for the classification of derivatives in the consolidated balance sheets. |
FAIR_VALUE_MEASUREMENTS_Additi
FAIR VALUE MEASUREMENTS (Additional Information) (Details) (Significant Unobservable Inputs (Level 3) [Member], USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
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 | $1,328 | [1] | $1,227 | [1] |
Loss included in earnings, fair value measurements using Level 3 inputs | 1 | [1],[2] | -1 | [1],[2] |
Purchases, fair value measurements using Level 3 inputs | 219 | [1] | 263 | [1] |
Settlements, fair value measurements using Level 3 inputs | -285 | [1] | -150 | [1] |
Balance at end of period, fair value measurements using Level 3 inputs | $1,263 | [1] | $1,339 | [1] |
[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. |
COMMITMENTS_AND_CONTINGENT_LIA2
COMMITMENTS AND CONTINGENT LIABILITIES (Environmental Matters) (Narrative) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | $700 | $706 |
Number of of Properties Remediated, City of Midland | 132 | |
Accrual For Environmental Loss Contingencies Superfund Sites [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | 74 | 78 |
Accrual For Environmental Loss Contingencies Midland Offsite Matters [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | $69 | $62 |
COMMITMENTS_AND_CONTINGENT_LIA3
COMMITMENTS AND CONTINGENT LIABILITIES (Asbestos-Related Matters of Union Carbide Corporation) (Table and Narrative) (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2002 |
Loss Contingencies [Line Items] | ||||
Asbestos Related Charges (Credit) | $78 | |||
Union Carbide [Member] | ||||
Loss Contingencies [Line Items] | ||||
Liability for asbestos claims, gross | 513 | 500 | 2,200 | |
Percentage of recorded asbestos liability related to pending claims | 22.00% | 20.00% | ||
Percentage of recorded asbestos liability related to future claims | 78.00% | 80.00% | ||
Estimated insurance recoveries | 79 | 64 | 1,350 | |
Defense and resolution costs for asbestos related claims | 24 | 25 | ||
Union Carbide [Member] | Asbestos Issue [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency, Range of Possible Loss, Minimum | 540 | |||
Loss Contingency, Range of Possible Loss, Maximum | 640 | |||
Union Carbide [Member] | Estimated Insurance Recoveries Defense And Resolution Costs [Member] | ||||
Loss Contingencies [Line Items] | ||||
Estimated insurance recoveries | 69 | 54 | ||
Union Carbide [Member] | Estimated Insurance Recoveries Carriers Without Settlement Agreements [Member] | ||||
Loss Contingencies [Line Items] | ||||
Estimated insurance recoveries | $10 | $10 |
COMMITMENTS_AND_CONTINGENT_LIA4
COMMITMENTS AND CONTINGENT LIABILITIES (Urethane Matters) (Narrative) (Details) (Urethane Antitrust Litigation [Domain], USD $) | 1 Months Ended | 3 Months Ended | |
In Millions, unless otherwise specified | Jul. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2015 |
July 2013 Urethane Matters Ruling [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Damages Awarded, Value | $1,060 | ||
Loss Contingency, Range of Possible Loss, Minimum | 0 | ||
Loss Contingency, Range of Possible Loss, Maximum | 1,060 | ||
February 20, 2013 Urethane Matters Ruling [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Damages Awarded, Value | $400 |
COMMITMENTS_AND_CONTINGENT_LIA5
COMMITMENTS AND CONTINGENT LIABILITIES (Guarantees) (Table and Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Guarantees [Member] | ||
Guarantor Obligations [Line Items] | ||
Final expiration | 2021 | 2021 |
Guarantor obligations, maximum future payments | $4,979,000,000 | $5,042,000,000 |
Guarantor obligations, recorded liability | 132,000,000 | 160,000,000 |
Residual Value Guarantees [Member] | ||
Guarantor Obligations [Line Items] | ||
Final expiration | 2024 | 2024 |
Guarantor obligations, maximum future payments | 900,000,000 | 951,000,000 |
Guarantor obligations, recorded liability | 120,000,000 | 123,000,000 |
Total Guarantees [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantor obligations, maximum future payments | 5,879,000,000 | 5,993,000,000 |
Guarantor obligations, recorded liability | 252,000,000 | 283,000,000 |
Sadara [Member] | ||
Guarantor Obligations [Line Items] | ||
Equity Method Investment, Ownership Percentage | 35.00% | |
Sadara [Member] | Guarantee of Indebtedness of Others [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantor obligations, maximum future payments | 4,400,000,000 | |
Total Project Financing [Member] | Sadara [Member] | Long Term Debt entered into by Equity Method Investee | ||
Guarantor Obligations [Line Items] | ||
Project Financing, Maximum Borrowing Capacity | 12,500,000,000 | |
Construction Loans [Member] | Sadara [Member] | Long Term Debt entered into by Equity Method Investee | ||
Guarantor Obligations [Line Items] | ||
Amount Drawn, Total Project Financing | $11,100,000,000 | $10,500,000,000 |
COMMITMENTS_AND_CONTINGENT_LIA6
COMMITMENTS AND CONTINGENT LIABILITIES (Warranties) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Commitments and Contingencies Disclosure [Abstract] | |||
Product Warranty Accrual | $103 | $107 | $24 |
Product Warranty Accrual, Preexisting, Increase (Decrease) | 2 | 104 | |
Product Warranty Accrual, Payments | ($6) | ($21) |
COMMITMENTS_AND_CONTINGENT_LIA7
COMMITMENTS AND CONTINGENT LIABILITIES (Asset Retirement Obligations) (Narrative) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Asset retirement obligation | $89 | $84 |
Asset retirement obligation discount rate | 1.48% | 1.48% |
TRANSFERS_OF_FINANCIAL_ASSETS_1
TRANSFERS OF FINANCIAL ASSETS (Sale of Trade Accounts Receivable in North America and Europe) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | ||
Tranfers of Financial Assets [Line Items] | |||||
Interests in conduits | $285 | $150 | |||
North America and Europe [Member] | |||||
Tranfers of Financial Assets [Line Items] | |||||
Carrying value of interests held | 1,263 | 1,328 | |||
North America and Europe [Member] | Trade Accounts Receivable [Member] | |||||
Tranfers of Financial Assets [Line Items] | |||||
Percentage of Anticipated Credit Losses | 0.34% | 0.35% | |||
Impact to carrying value, 10 percent adverse change | 1 | 1 | |||
Impact to carrying value, 20 percent adverse change | 2 | 2 | |||
Sale of receivables | 12 | 0 | |||
Collections reinvested in revolving receivables | 5,461 | 6,189 | |||
Interests in conduits | 285 | [1] | 150 | [1] | |
Delinquencies on sold receivables still outstanding | 113 | 133 | |||
Trade accounts receivable outstanding and derecognized | $2,524 | $2,607 | |||
[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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Notes Payable Long Term Debt and Available Credit Facilities [Line Items] | ||
Notes payable to banks and other lenders | $351 | $353 |
Notes payable to related companies | 124 | 189 |
Notes payable trade | 7 | 9 |
Notes payable | $482 | $551 |
Period-end average interest rates | 4.53% | 4.08% |
NOTES_PAYABLE_LONGTERM_DEBT_AN3
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES (Schedule of Long-Term Debt) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Unamortized debt discount | ($344) | ($350) |
Long-term debt due within one year | -1,440 | -394 |
Long-term debt | -17,867 | -18,838 |
Annual Installments on Long Term Debt for Next Five Years at the current period end [Abstract] | ||
Annual Installments on Long Term Debt, 2015 | 380 | |
Annual Installments on Long Term Debt, 2016 | 1,373 | |
Annual Installments on Long Term Debt, 2017 | 773 | |
Annual Installments on Long Term Debt, 2018 | 935 | |
Annual Installments on Long Term Debt, 2019 | 2,579 | |
Annual Installments on Long Term Debt, 2020 | 2,073 | |
Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | -81 | -85 |
Final Maturity 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | -60 | -60 |
Average interest rate in period | 2.74% | 2.74% |
Final maturity 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | -805 | -805 |
Average interest rate in period | 2.52% | 2.52% |
Final Maturity 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | -489 | -489 |
Average interest rate in period | 5.66% | 5.66% |
Final maturity 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | -567 | -567 |
Average interest rate in period | 5.44% | 5.44% |
Final Maturity 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | -2,168 | -2,168 |
Average interest rate in period | 8.41% | 8.41% |
Final Maturity 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | -1,877 | -1,877 |
Average interest rate in period | 4.37% | 4.37% |
Final Maturity 2021 and thereafter [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | -10,186 | -10,186 |
Average interest rate in period | 5.31% | 5.31% |
U.S. Dollar loans, Various Rates and Maturities [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | -461 | -461 |
Average interest rate in period | 1.39% | 1.38% |
Foreign Currency Loans, Various Rates and Maturities [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | -994 | -1,013 |
Average interest rate in period | 3.01% | 3.01% |
Medium Term Notes Varying Maturities Through 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | -1,620 | -1,528 |
Average interest rate in period | 3.51% | 3.55% |
Pollution Control/Industrial Revenue Bonds, Varying Maturities Through 2038 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | ($343) | ($343) |
Average interest rate in period | 5.66% | 5.66% |
NOTES_PAYABLE_LONGTERM_DEBT_AN4
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Notes Payable Long Term Debt and Available Credit Facilities [Line Items] | ||
Proceeds from issuance of long-term debt | $102 | $138 |
InterNotes issued [Member] | ||
Notes Payable Long Term Debt and Available Credit Facilities [Line Items] | ||
Proceeds from issuance of long-term debt | 93 | 99 |
Long Term Debt Repayment-Purchase of Ethylene Facility [Member] | ||
Notes Payable Long Term Debt and Available Credit Facilities [Line Items] | ||
Repayments of Debt | 346 | |
Long Term Debt entered into by Variable Interest Entities [Member] | ||
Notes Payable Long Term Debt and Available Credit Facilities [Line Items] | ||
Proceeds from issuance of long-term debt | 26 | |
Proceeds from Issuance of Debt | 3 | |
Long Term Debt Repayment - Variable Interest Entity [Member] | ||
Notes Payable Long Term Debt and Available Credit Facilities [Line Items] | ||
Repayments of Debt | $5 | $5 |
NOTES_PAYABLE_LONGTERM_DEBT_AN5
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES (Schedule of Committed and Available Credit Facilities) (Details) (USD $) | Mar. 31, 2015 | |
In Millions, unless otherwise specified | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $6,300 | |
Line of Credit Facility, Remaining Borrowing Capacity | 6,000 | |
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 | [1] |
Line of Credit Facility, Remaining Borrowing Capacity | 5,000 | [1] |
$100M Revolving Credit Facility Due 3/2016 [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 | |
$200M Revolving Credit Facility due 4/2016 [Domain] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 200 | |
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 1/2014 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 | |
[1] | The prior credit facility was terminated and replaced with a new credit facility on March 24, 2015. |
VARIABLE_INTEREST_ENTITIES_Sch
VARIABLE INTEREST ENTITIES (Schedule of Consolidated Variable Interest Entities, Carrying Amounts of Assets and Liabilities) (Details) (USD $) | 3 Months Ended | ||||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 02, 2014 | ||
Repayments of Long-term Debt | $13 | $391 | |||||
Purchases of noncontrolling interests | 0 | 4 | |||||
Cash and cash equivalents | 6,288 | 4,385 | 5,654 | 5,940 | |||
Other current assets | 372 | 328 | |||||
Property | 18,066 | 18,051 | |||||
Other noncurrent assets | 616 | 621 | |||||
Total Assets | 67,789 | 68,796 | |||||
Current liabilities | 12,387 | 11,593 | |||||
Long-term debt (nonrecourse 2015: $1,227; 2014: $1,229) | 17,867 | 18,838 | |||||
Other noncurrent liabilities (nonrecourse 2015: $58; 2014: $62) | 3,259 | 3,290 | |||||
Current assets | 24,394 | 24,267 | |||||
Nonrecourse Liabilities Noncurrent | 1,227 | 1,229 | |||||
Variable Interest Entity, Primary Beneficiary [Member] | |||||||
Cash and cash equivalents | 244 | [1] | 190 | [1] | |||
Other current assets | 162 | 175 | |||||
Property | 2,708 | 2,726 | |||||
Other noncurrent assets | 99 | 85 | |||||
Total Assets | 3,213 | [2] | 3,176 | [2] | |||
Current liabilities | 365 | 394 | |||||
Long-term debt (nonrecourse 2015: $1,227; 2014: $1,229) | 1,252 | 1,260 | |||||
Other noncurrent liabilities (nonrecourse 2015: $58; 2014: $62) | 58 | 62 | |||||
Total liabilities | 1,675 | 1,716 | |||||
Nonrecourse Liabilities Current | 362 | 391 | |||||
Nonrecourse Liabilities Noncurrent | 1,227 | 1,229 | |||||
Other Nonrecourse Liabilities Noncurrent | 58 | 62 | |||||
Variable Interest Entity, Primary Beneficiary [Member] | Restricted For Construction Of Manufacturing Facility [Member] | |||||||
Cash and cash equivalents | 42 | 20 | |||||
Netherlands Owner Trust [Member] | |||||||
Variable Interest Entity Lease Expiration Purchase Amount | 406 | ||||||
Repayments of Long-term Debt | 346 | ||||||
Purchases of noncontrolling interests | 4 | ||||||
Variable Interest Entities Used to Monetize Accounts Receivable [Member] | |||||||
Current liabilities | 1 | 1 | |||||
Current assets | 79 | 99 | |||||
Nonrecourse Liabilities Current | 0 | 0 | |||||
Variable Interest Entities Used to Monetize Accounts Receivable [Member] | Restricted Current Assets [Member] | |||||||
Current assets | $0 | $0 | |||||
[1] | Includes $42 million at March 31, 2015 ($20 million at December 31, 2014) restricted for the debt servicing and operational expenses of a manufacturing facility. | ||||||
[2] | All assets were restricted at March 31, 2015 and December 31, 2014. |
VARIABLE_INTEREST_ENTITIES_Non
VARIABLE INTEREST ENTITIES (Nonconsolidated Variable Interest Entity) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ||
Investment in nonconsolidated affiliates | $3,912 | $4,201 |
Variable Interest Entity, Not Primary Beneficiary [Member] | Acrylic Acid Joint Venture [Member] | ||
Variable Interest Entity [Line Items] | ||
Investment in nonconsolidated affiliates | $139 | $162 |
PENSION_PLANS_AND_OTHER_POSTRE2
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Defined Benefit Pension Plans [Member] | |||
Defined Benefit Plan Disclosures [Line Items] | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $850 | ||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | 125 | 103 | |
Interest cost | 244 | 276 | |
Expected return on plan assets | -344 | -332 | |
Amortization of prior service cost (credit) | -7 | 6 | |
Amortization of net (gain) loss | 184 | 126 | |
Net settlements | 0 | 2 | [1] |
Net periodic benefit cost | 202 | 181 | |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | 4 | 4 | |
Interest cost | 15 | 18 | |
Amortization of prior service cost (credit) | -1 | 0 | |
Amortization of net (gain) loss | -3 | -4 | |
Net periodic benefit cost | $15 | $18 | |
[1] | The 2014 impact relates to settlements associated with the wind-up of a Canadian pension plan. |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
years | |
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% |
Share based compensation arrangement by share based payment award discount from market price offering date company specific | 85.00% |
Unrecognized Compensation Cost | $8 |
Weighted-average Recognition Period, in years | 0.63 |
Equity Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | 61 |
Weighted-average Recognition Period, in years | 0.75 |
Deferred Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | 161 |
Weighted-average Recognition Period, in years | 0.96 |
Performance Deferred Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $170 |
Weighted-average Recognition Period, in years | 0.93 |
Employee [Member] | Employees' Stock Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Right to purchase shares subscribed by employees | 3.2 |
Weighted-average exercise price right to purchase shares by employees | $41.49 |
Weighted-average fair value of shares under the Employee Stock Purchase Plan | $4.62 |
Employee [Member] | Equity Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options granted to employees under the 2012 plan | 3 |
Weighted-average exercise price options granted under the 2012 plan | $49.44 |
Weighted-average fair value per share of purchase rights granted | $11.61 |
Employee [Member] | Deferred Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Deferred stock granted to employees | 2.1 |
Weighted-average fair value of deferred stock granted under the 2012 plan | $49.42 |
Employee [Member] | Performance Deferred Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Deferred stock granted to employees | 2.3 |
Weighted-average fair value of deferred stock granted under the 2012 plan | $59.08 |
EARNINGS_PER_SHARE_CALCULATION2
EARNINGS PER SHARE CALCULATIONS (Net Income) (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Earnings Per Share [Abstract] | ||||
Net Income Attributable to The Dow Chemical Company | $1,478 | $1,049 | ||
Preferred stock dividends | -85 | -85 | [1] | |
Net income attributable to participating securities | -10 | [2] | -8 | [2] |
Net income attributable to common stockholders | 1,383 | 956 | ||
Net income attributable to participating securities, Diluted | -10 | [2] | -8 | [2] |
Net income attributable to common stockholders, Diluted | $1,468 | $956 | ||
[1] | Preferred stock dividends were not added back in the calculation of diluted earnings per share for the three-month period ended March 31, 2014, 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 $) | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | |||
Earnings Per Share [Abstract] | ||||
Net income attributable to The Dow Chemical Company, basic | $1.30 | $0.88 | ||
Preferred stock dividends, basic | ($0.07) | ($0.07) | ||
Distributed And Undistributed Earnings Allocated to Participating Securities Per Basic Share | ($0.01) | [1] | ($0.01) | [1] |
Net income attributable to common stockholders, basic | $1.22 | $0.80 | ||
[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 $) | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | |||
Earnings Per Share [Abstract] | ||||
Net income attributable to The Dow Chemical Company, diluted | $1.19 | $0.87 | ||
Preferred stock dividends, diluted | $0 | ($0.07) | [1] | |
Net income attributable to participating securities, diluted | ($0.01) | [2] | ($0.01) | [2] |
Earnings per common share - diluted | $1.18 | $0.79 | ||
[1] | Preferred stock dividends were not added back in the calculation of diluted earnings per share for the three-month period ended March 31, 2014, 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) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Earnings Per Share Disclosure [Line Items] | ||||
Weighted-average common shares - basic | 1,135.70 | 1,190.60 | ||
Plus dilutive effect of stock options and awards | 14.2 | 17.1 | ||
Incremental Common Shares Attributable to Conversion of Preferred Stock | 96.8 | [1] | 0 | [1] |
Weighted-average common shares outstanding - diluted | 1,246.70 | 1,207.70 | ||
Employee Stock Option [Member] | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 6.4 | [2] | 5.7 | [2] |
[1] | 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 three-month period ended March 31, 2014, 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. |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) (USD $) | 3 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Net change in unrealized gains | ($2) | ($11) | ||||
Translation adjustments | -937 | -71 | ||||
Stockholders' Equity Attributable to Parent | 22,237 | 22,423 | ||||
Accumulated Other Comprehensive Loss | ||||||
Stockholders' Equity Attributable to Parent | -8,840 | -4,824 | -8,017 | -4,827 | ||
Accumulated Unrealized Gains on Investments [Member] | ||||||
Net change in unrealized gains | 12 | 18 | ||||
Stockholders' Equity Attributable to Parent | 139 | 149 | 141 | 160 | ||
Accumulated Unrealized Gains on Investments [Member] | Sales [Member] | ||||||
Reclassification to earnings - Net Sales (net of tax of $(8), $(16)) (1) | -14 | [1] | -29 | [1] | ||
Other Comprehensive Loss, Reclassification Adjustment for Sale of Securities Included in Net Income, Tax | -8 | [1] | -16 | [1] | ||
Accumulated Translation Adjustments [Member] | ||||||
Translation adjustments | -941 | -68 | ||||
Stockholders' Equity Attributable to Parent | -1,688 | 405 | -751 | 476 | ||
Accumulated Translation Adjustments [Member] | Impact to Sundry income (expense) [Member] | ||||||
Reclassification to earnings - Sundry income (expense) - net | 4 | -3 | ||||
Accumulated Pension and Other Postretirement Benefit Plans Adjustments [Member] | ||||||
Adjustments to pension and other postretirement benefit plans (net of tax of $61, $39) (1) (2) | 125 | [1],[2] | 81 | [1],[2] | ||
Stockholders' Equity Attributable to Parent | -7,196 | -5,379 | -7,321 | -5,460 | ||
Other Comprehensive Loss, Pension and Other Postretirement Benefit Plans, Tax | 61 | [1] | 39 | [1] | ||
Accumulated Derivative Gain (Loss) [Member] | ||||||
Net hedging results | -27 | 3 | ||||
Reclassification to earnings - Cost of sales (net of tax of $5, $1) (1) | 18 | [1] | 1 | [1] | ||
Stockholders' Equity Attributable to Parent | -95 | 1 | -86 | -3 | ||
Other Comprehensive Loss, Reclassification Adjustment on Derivatives Included in Net Income, Tax | $5 | [1] | $1 | [1] | ||
[1] | Tax amounts are included in "Provision for income taxes" in the consolidated statements of income. | |||||
[2] | Included in "Net periodic benefit cost." See Note 12 for additional information. |
NONCONTROLLING_INTERESTS_Nonco2
NONCONTROLLING INTERESTS Noncontrolling Interests (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Noncontrolling Interest [Line Items] | ||||
Net Income (Loss) Attributable to Noncontrolling Interest | $41 | $17 | ||
Stockholders' Equity Attributable to Noncontrolling Interest, Ending | 977 | 931 | ||
Noncontrolling Interests [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Net Income (Loss) Attributable to Noncontrolling Interest | 41 | 17 | ||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 9 | 12 | ||
Capital Contributions | 14 | 29 | ||
Purchases of noncontrolling interests | 0 | 54 | ||
Transfer of redeemable noncontrolling interest | 0 | -27 | ||
Cumulative translation adjustment | 0 | 2 | ||
Other | 0 | 1 | ||
Stockholders' Equity Attributable to Noncontrolling Interest, Ending | $977 | $982 | $931 | $1,026 |
OPERATING_SEGMENTS_AND_GEOGRAP2
OPERATING SEGMENTS AND GEOGRAPHIC AREAS (Schedule of Operating Segments) (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||
Sales to external customers | $12,370 | $14,461 | ||
Earnings before interest, taxes, depreciation and amortization | 3,063 | [1] | 2,396 | [1] |
Equity in earnings (losses) of nonconsolidated affiliates by operating segment (included in EBITDA) | 168 | 251 | ||
Agricultural Sciences [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales to external customers | 1,864 | 2,119 | ||
Earnings before interest, taxes, depreciation and amortization | 409 | [1] | 506 | [1] |
Equity in earnings (losses) of nonconsolidated affiliates by operating segment (included in EBITDA) | 0 | 0 | ||
Consumer Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales to external customers | 1,123 | 1,137 | ||
Earnings before interest, taxes, depreciation and amortization | 286 | [1] | 259 | [1] |
Equity in earnings (losses) of nonconsolidated affiliates by operating segment (included in EBITDA) | 20 | 30 | ||
Infrastructure Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales to external customers | 1,828 | 2,035 | ||
Earnings before interest, taxes, depreciation and amortization | 295 | [1] | 268 | [1] |
Equity in earnings (losses) of nonconsolidated affiliates by operating segment (included in EBITDA) | 76 | 71 | ||
Performance Materials & Chemicals [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales to external customers | 3,209 | 3,550 | ||
Earnings before interest, taxes, depreciation and amortization | 1,223 | [1] | 514 | [1] |
Equity in earnings (losses) of nonconsolidated affiliates by operating segment (included in EBITDA) | 55 | 91 | ||
Performance Plastics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales to external customers | 4,269 | 5,522 | ||
Earnings before interest, taxes, depreciation and amortization | 985 | [1] | 966 | [1] |
Equity in earnings (losses) of nonconsolidated affiliates by operating segment (included in EBITDA) | 23 | 68 | ||
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales to external customers | 77 | 98 | ||
Earnings before interest, taxes, depreciation and amortization | -135 | [1] | -117 | [1] |
Equity in earnings (losses) of nonconsolidated affiliates by operating segment (included in EBITDA) | ($6) | ($9) | ||
[1] | The Company uses EBITDA (which Dow defines as earnings (i.e., "Net Income") before interest, income taxes, depreciation and amortization) as its measure of profit/loss for segment reporting purposes. EBITDA by operating segment includes all operating items relating to the businesses; items that principally apply to the Company as a whole are assigned to Corporate. A reconciliation of EBITDA to "Income Before Income Taxes" is provided below. |
OPERATING_SEGMENTS_AND_GEOGRAP3
OPERATING SEGMENTS AND GEOGRAPHIC AREAS (Reconciliation of EBITDA to Income Before Income Taxes) (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Reconciliation of EBITDA to Income Before Income Taxes [Abstract] | ||||
Earnings before interest, taxes, depreciation and amortization | $3,063 | [1] | $2,396 | [1] |
Minus depreciation and amortization | 634 | 672 | ||
Plus interest income | 17 | 13 | ||
Minus interest expense and amortization of debt discount | 241 | 246 | ||
Income Before Income Taxes | $2,205 | $1,491 | ||
[1] | The Company uses EBITDA (which Dow defines as earnings (i.e., "Net Income") before interest, income taxes, depreciation and amortization) as its measure of profit/loss for segment reporting purposes. EBITDA by operating segment includes all operating items relating to the businesses; items that principally apply to the Company as a whole are assigned to Corporate. A reconciliation of EBITDA to "Income Before Income Taxes" is provided below. |
OPERATING_SEGMENTS_AND_GEOGRAP4
OPERATING SEGMENTS AND GEOGRAPHIC AREAS (Schedule of Revenue by Geographic Area) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Sales by operating segment [Line Items] | ||
Net Sales | $12,370 | $14,461 |
United States [Member] | ||
Sales by operating segment [Line Items] | ||
Net Sales | 4,327 | 4,791 |
Europe, Middle East, Africa and India [Domain] | ||
Sales by operating segment [Line Items] | ||
Net Sales | 3,974 | 5,215 |
Rest of World [Domain] | ||
Sales by operating segment [Line Items] | ||
Net Sales | $4,069 | $4,455 |
REVERSE_MORRIS_TRUST_TRANSACTI1
REVERSE MORRIS TRUST TRANSACTION (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 27, 2015 | |
Business Combinations [Abstract] | ||
Shareholder Ownership Percentage | 50.50% | |
Merger Agreement, Aggregate Transaction Value | $5,000,000,000 | |
Merger Agreement, Cash and Debt Instruments | 2,000,000,000 | |
Business Merger, Assumed Debt, Pension and Other Liabilities | 800,000,000 | |
Business Merger, Value of Shares Received | 2,200,000,000 | |
Business Separation Merger Related Costs | ($26,000,000) |