Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2018shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | DOW CHEMICAL CO /DE/ |
Entity Central Index Key | 29,915 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 100 |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 14,976 | $ 13,633 | $ 45,668 | $ 40,697 |
Cost of sales | 11,933 | 10,663 | 35,885 | 31,618 |
Research and development expenses | 373 | 408 | 1,166 | 1,235 |
Selling, general and administrative expenses | 672 | 724 | 2,171 | 2,203 |
Amortization of intangibles | 155 | 155 | 469 | 467 |
Restructuring and asset related charges - net | 108 | 139 | 371 | 126 |
Integration and separation costs | 278 | 283 | 711 | 528 |
Equity in earnings of nonconsolidated affiliates | 165 | 156 | 639 | 406 |
Sundry income (expense) - net | 11 | 268 | 99 | 146 |
Interest expense and amortization of debt discount | 280 | 256 | 824 | 701 |
Income before income taxes | 1,353 | 1,429 | 4,809 | 4,371 |
Provision for income taxes | 317 | 624 | 1,086 | 1,292 |
Net income | 1,036 | 805 | 3,723 | 3,079 |
Net income attributable to noncontrolling interests | 36 | 22 | 102 | 87 |
Net income available for The Dow Chemical Company common stockholder | 1,000 | 783 | 3,621 | 2,992 |
Depreciation | 613 | 598 | 1,840 | 1,710 |
Capital expenditures | $ 663 | $ 660 | $ 1,650 | $ 2,209 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,036 | $ 805 | $ 3,723 | $ 3,079 |
Other comprehensive income (loss), net of tax | ||||
Unrealized gains (losses) on investments | 8 | (51) | (31) | (43) |
Cumulative translation adjustments | (98) | 193 | (192) | 819 |
Pension and other postretirement benefit plans | 123 | 105 | 373 | 308 |
Derivative instruments | 208 | 32 | 332 | (57) |
Total other comprehensive income (loss) | 241 | 279 | 482 | 1,027 |
Comprehensive income | 1,277 | 1,084 | 4,205 | 4,106 |
Comprehensive income (loss) attributable to noncontrolling interests, net of tax | 31 | 28 | 58 | 121 |
Comprehensive income attributable to The Dow Chemical Company | $ 1,246 | $ 1,056 | $ 4,147 | $ 3,985 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and cash equivalents (variable interest entities restricted - 2018: $133; 2017: $107) | $ 3,403 | $ 6,188 |
Marketable securities | 106 | 4 |
Accounts and notes receivable: | ||
Trade (net of allowance for doubtful receivables - 2018: $124; 2017: $117) | 8,775 | 7,338 |
Other | 4,150 | 4,711 |
Inventories | 9,615 | 8,376 |
Other current assets | 911 | 627 |
Total current assets | 26,960 | 27,244 |
Investments | ||
Investment in nonconsolidated affiliates | 3,818 | 3,742 |
Other investments (investments carried at fair value - 2018: $1,864; 2017: $1,512) | 2,657 | 2,510 |
Noncurrent receivables | 427 | 594 |
Total investments | 6,902 | 6,846 |
Property | ||
Property | 61,106 | 60,426 |
Less accumulated depreciation | 37,710 | 36,614 |
Net property (variable interest entities restricted - 2018: $769; 2017: $907) | 23,396 | 23,812 |
Other Assets | ||
Goodwill | 13,871 | 13,938 |
Other intangible assets (net of accumulated amortization - 2018: $5,581; 2017: $5,161) | 5,054 | 5,549 |
Deferred income tax assets | 1,716 | 1,722 |
Deferred charges and other assets | 1,152 | 829 |
Total other assets | 21,793 | 22,038 |
Total Assets | 79,051 | 79,940 |
Current Liabilities | ||
Notes payable | 910 | 484 |
Long-term debt due within one year | 2,605 | 752 |
Accounts payable: | ||
Trade | 5,549 | 5,360 |
Other | 3,652 | 3,062 |
Income taxes payable | 613 | 694 |
Accrued and other current liabilities | 3,497 | 4,025 |
Total current liabilities | 16,826 | 14,377 |
Long-Term Debt (variable interest entities nonrecourse - 2018: $148; 2017: $249) | 17,085 | 19,765 |
Other Noncurrent Liabilities | ||
Deferred income tax liabilities | 792 | 764 |
Pension and other postretirement benefits - noncurrent | 9,137 | 10,794 |
Asbestos-related liabilities - noncurrent | 1,164 | 1,237 |
Other noncurrent obligations | 5,709 | 5,994 |
Total other noncurrent liabilities | 16,802 | 18,789 |
Stockholders’ Equity | ||
Common stock (authorized and issued 100 shares of $0.01 par value each) | 0 | 0 |
Additional paid-in capital | 6,953 | 6,553 |
Retained earnings | 29,489 | 28,050 |
Accumulated other comprehensive loss | (9,146) | (8,591) |
Unearned ESOP shares | (139) | (189) |
The Dow Chemical Company’s stockholders’ equity | 27,157 | 25,823 |
Noncontrolling interests | 1,181 | 1,186 |
Total equity | 28,338 | 27,009 |
Total Liabilities and Equity | $ 79,051 | $ 79,940 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Trade (allowance for doubtful receivables) | $ 124 | $ 117 |
Other investments (investments carried at fair value) | 1,864 | 1,512 |
Other intangible assets (accumulated amortization) | $ 5,581 | $ 5,161 |
Common Stock, Shares Authorized | 100 | 100 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares, Issued | 100 | 100 |
Treasury Stock, Shares | 0 | 0 |
Cash and cash equivalents | Variable Interest Entity, Primary Beneficiary [Member] | ||
Cash and cash equivalents (variable interest entities restricted) | $ 133 | $ 107 |
Property, Plant and Equipment [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Net property (variable interest entities restricted) | 769 | 907 |
Long-term debt | Variable Interest Entity, Primary Beneficiary [Member] | ||
Long Term Debt (variable interest entities nonrecourse) | $ 148 | $ 249 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Operating Activities | ||
Net income | $ 3,723 | $ 3,079 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||
Depreciation and amortization | 2,502 | 2,318 |
Provision (Credit) for deferred income tax | (242) | 387 |
Earnings of nonconsolidated affiliates less than dividends received | 81 | 194 |
Net periodic pension benefit cost | 327 | 334 |
Pension contributions | (1,538) | (444) |
Net gain on sales of assets, businesses and investments | (54) | (474) |
Adjustment to gain on step acquisition of nonconsolidated affiliate | 47 | 0 |
Restructuring and asset related charges - net | 371 | 126 |
Other net loss | 341 | 296 |
Changes in assets and liabilities, net of effects of acquired and divested companies: | ||
Accounts and notes receivable | (1,853) | (8,291) |
Inventories | (1,290) | (1,175) |
Accounts payable | 857 | 1,207 |
Other assets and liabilities, net | (1,075) | 231 |
Cash provided by (used for) operating activities | 2,197 | (2,212) |
Investing Activities | ||
Capital expenditures | (1,650) | (2,209) |
Investment in gas field developments | (82) | (98) |
Purchases of previously leased assets | 0 | (2) |
Proceeds from sales of property and businesses, net of cash divested | 60 | 521 |
Acquisitions of property and businesses, net of cash acquired | (20) | 0 |
Investments in and loans to nonconsolidated affiliates | (11) | (694) |
Distributions and loan repayments from nonconsolidated affiliates | 55 | 54 |
Proceeds from sale of ownership interests in nonconsolidated affiliates | 0 | 64 |
Purchases of investments | (1,301) | (450) |
Proceeds from sales and maturities of investments | 1,026 | 1,039 |
Proceeds from interests in trade accounts receivable conduits | 657 | 6,989 |
Cash provided by (used for) investing activities | (1,266) | 5,214 |
Financing Activities | ||
Changes in short-term notes payable | 426 | 365 |
Payments on long-term debt | (862) | (550) |
Proceeds from issuance of parent company stock | 106 | 21 |
Proceeds from sales of common stock | 0 | 423 |
Employee taxes paid for share-based payment arrangements | (90) | (89) |
Contingent payment for acquisition of businesses | 0 | 31 |
Distributions to noncontrolling interests | (69) | (58) |
Dividends paid to stockholders | 0 | (1,621) |
Dividends paid to parent | (3,158) | 0 |
Other financing activities, net | 2 | 0 |
Cash used for financing activities | (3,645) | (1,540) |
Summary | ||
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (59) | 323 |
Increase (Decrease) in cash, cash equivalents and restricted cash | (2,773) | 1,785 |
Cash, cash equivalents and restricted cash at beginning of period | 6,207 | 6,624 |
Cash, cash equivalents and restricted cash at end of period | 3,434 | 8,409 |
Less: Restricted cash and cash equivalents, included in Other current assets | 31 | 15 |
Cash and cash equivalents at end of period | $ 3,403 | $ 8,394 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss | Unearned ESOP Shares [Member] | Treasury Stock [Member] | Noncontrolling Interests |
Total Equity, Beginning at Dec. 31, 2016 | $ 27,229 | $ 3,107 | $ 4,262 | $ 30,338 | $ (9,822) | $ (239) | $ (1,659) | $ 1,242 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income available for The Dow Chemical Company common stockholder | 2,992 | 2,992 | ||||||
Other comprehensive income | 1,027 | 1,027 | ||||||
Dividends to parent | (1,673) | (1,673) | ||||||
Common stock issued / sold | 1,147 | 423 | 724 | |||||
Issuance of parent company stock | 21 | 21 | ||||||
Stock-based compensation and allocation of ESOP shares | (396) | (443) | 47 | |||||
Impact of noncontrolling interests | (53) | (53) | ||||||
Stock Repurchased and Retired During Period, Value | 0 | (3,107) | 2,172 | 935 | ||||
Other | (23) | (2) | 21 | |||||
Total Equity, Ending at Sep. 30, 2017 | 30,271 | 0 | 6,433 | 31,636 | (8,795) | (192) | 0 | 1,189 |
Total Equity, Beginning at Dec. 31, 2017 | 27,009 | 0 | 6,553 | 28,050 | (8,591) | (189) | 0 | 1,186 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income available for The Dow Chemical Company common stockholder | 3,621 | 3,621 | ||||||
Other comprehensive income | 482 | 482 | ||||||
Dividends to parent | (3,158) | (3,158) | ||||||
Issuance of parent company stock | 106 | 106 | ||||||
Stock-based compensation and allocation of ESOP shares | 344 | 294 | 50 | |||||
Impact of noncontrolling interests | (5) | (5) | ||||||
Other | (13) | 0 | 13 | |||||
Total Equity, Ending at Sep. 30, 2018 | $ 28,338 | $ 0 | $ 6,953 | $ 29,489 | $ (9,146) | $ (139) | $ 0 | $ 1,181 |
CONSOLIDATED FINANCIAL STATEMEN
CONSOLIDATED FINANCIAL STATEMENTS | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONSOLIDATED FINANCIAL STATEMENTS | CONSOLIDATED FINANCIAL STATEMENTS Basis of Presentation 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, 2017 . Effective August 31, 2017, pursuant to the merger of equals transaction contemplated by the Agreement and Plan of Merger, dated as of December 11, 2015, as amended on March 31, 2017, Dow and E. I. du Pont de Nemours and Company ("DuPont") each merged with subsidiaries of DowDuPont Inc. ("DowDuPont") and, as a result, Dow and DuPont became subsidiaries of DowDuPont (the "Merger"). In accordance with the accounting guidance for earnings per share, the presentation of earnings per share is not required in financial statements of wholly owned subsidiaries. Following the Merger, Dow and DuPont intend to pursue, subject to certain customary conditions, including, among others, the effectiveness of registration statements filed with the U.S. Securities and Exchange Commission ("SEC") and approval by the board of directors of DowDuPont, the separation of the combined company's agriculture, materials science and specialty products businesses through one or more tax-efficient transactions ("Intended Business Separations"). Beginning September 1, 2017, transactions between DowDuPont, Dow and DuPont and their affiliates are reflected in these consolidated financial statements and will be disclosed as related party transactions, when material. Transactions between Dow and DuPont primarily consist of the sale and procurement of certain feedstocks, energy and raw materials that are consumed in each company's manufacturing process. See Note 20 for additional information. Effective with the Merger, Dow’s business activities are components of its parent company’s business operations. Dow’s business activities, including the assessment of performance and allocation of resources, are reviewed and managed by DowDuPont. Information used by the chief operating decision maker of Dow relates to the Company in its entirety. Accordingly, there are no separate reportable business segments for the Company under Accounting Standards Codification ("ASC") Topic 280 “Segment Reporting” and the Company’s business results are reported in this Form 10-Q as a single operating segment. Except as otherwise indicated by the context, the term "Union Carbide" means Union Carbide Corporation, a wholly owned subsidiary of Dow, and "Dow Silicones" means Dow Silicones Corporation (formerly known as Dow Corning Corporation, which changed its name effective as of February 1, 2018), a wholly owned subsidiary of Dow. Changes to Prior Period Consolidated Financial Statements In the first quarter of 2018, the Company adopted new accounting standards that required retrospective application. The Company updated the consolidated statements of income as a result of adopting Accounting Standards Update ("ASU") 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The consolidated statements of cash flows were updated as a result of adopting ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" and ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash." See Note 2 for additional information on the ASUs. In the third quarter of 2018, the SEC's Office of the Chief Accountant provided additional guidance related to ASU 2016-15 that indicated an entity must evaluate daily transaction activity to calculate the value of cash received from beneficial interests in conduits, resulting in additional updates to the consolidated statements of cash flows. Changes to the consolidated financial statements as a result of the retrospective application of the new accounting standards are summarized as follows: Summary of Changes to the Consolidated Statements of Income Three Months Ended Sep 30, 2017 Nine Months Ended Sep 30, 2017 In millions As Filed Updated 1 As Filed Updated 1 Cost of sales $ 10,666 $ 10,663 $ 31,626 $ 31,618 Research and development expenses $ 406 $ 408 $ 1,227 $ 1,235 Selling, general and administrative expenses $ 723 $ 724 $ 2,201 $ 2,203 Sundry income (expense) - net $ 144 $ 146 1. Reflects changes resulting from the adoption of ASU 2017-07. See Note 2 for additional information. Summary of Changes to the Consolidated Statements of Cash Flows Nine Months Ended Sep 30, 2017 In millions As Filed Updated 1 Operating Activities Proceeds from interests in trade accounts receivable conduits $ 939 $ — Accounts and notes receivable $ (2,241 ) $ (8,291 ) Other assets and liabilities, net $ 233 $ 231 Cash provided by (used for) operating activities $ 4,779 $ (2,212 ) Investing Activities Payment into escrow account $ (130 ) $ — Distribution from escrow account $ 130 $ — Acquisitions of property and businesses, net of cash acquired $ (31 ) $ — Proceeds from interests in trade accounts receivable conduits $ — $ 6,989 Cash provided by (used for) investing activities $ (1,806 ) $ 5,214 Financing Activities Contingent payment for acquisition of businesses $ — $ (31 ) Cash used for financing activities $ (1,509 ) $ (1,540 ) Summary Increase in cash, cash equivalents and restricted cash $ 1,787 $ 1,785 Cash, cash equivalents and restricted cash at beginning of period $ 6,607 $ 6,624 Cash, cash equivalents and restricted cash at end of period $ 8,394 $ 8,409 1. Reflects the adoption of ASU 2016-15 and ASU 2016-18. See Note 2 for additional information. In connection with the review and implementation of ASU 2016-15, the Company also changed the prior year value of “Proceeds from interests in trade accounts receivable conduits” due to additional interpretive guidance of the required method for calculating the cash received from beneficial interests in the conduits, including additional guidance from the SEC's Office of the Chief Accountant issued in the third quarter of 2018. Opening Balance Sheet Impact of Accounting Standards Adoption In the first quarter of 2018, the Company adopted ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)" and the associated ASUs (collectively, "Topic 606"), ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" and ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory." See Note 2 for additional information on these ASUs. The cumulative effect on the Company's January 1, 2018, consolidated balance sheet as a result of adopting these accounting standards is summarized in the following table: Summary of Impacts to the Consolidated Balance Sheet Dec 31, 2017 Adjustments due to: Jan 1, 2018 In millions As Filed Topic 606 ASU 2016-01 ASU 2016-16 Updated Assets Inventories $ 8,376 $ (11 ) $ — $ — $ 8,365 Other current assets $ 627 $ 29 $ — $ 31 $ 687 Total current assets $ 27,244 $ 18 $ — $ 31 $ 27,293 Deferred income tax assets $ 1,722 $ 25 $ — $ 10 $ 1,757 Deferred charges and other assets $ 829 $ 43 $ — $ — $ 872 Total other assets $ 22,038 $ 68 $ — $ 10 $ 22,116 Total Assets $ 79,940 $ 86 $ — $ 41 $ 80,067 Liabilities Accounts payable - Other $ 3,062 $ 10 $ — $ — $ 3,072 Income taxes payable $ 694 $ (2 ) $ — $ — $ 692 Accrued and other current liabilities $ 4,025 $ 50 $ — $ — $ 4,075 Total current liabilities $ 14,377 $ 58 $ — $ — $ 14,435 Other noncurrent obligations $ 5,994 $ 117 $ — $ — $ 6,111 Total other noncurrent liabilities $ 18,789 $ 117 $ — $ — $ 18,906 Stockholders' Equity Retained earnings $ 28,050 $ (89 ) $ (20 ) $ 41 $ 27,982 Accumulated other comprehensive loss $ (8,591 ) $ — $ 20 $ — $ (8,571 ) The Dow Chemical Company's stockholders' equity $ 25,823 $ (89 ) $ — $ 41 $ 25,775 Total equity $ 27,009 $ (89 ) $ — $ 41 $ 26,961 Total Liabilities and Equity $ 79,940 $ 86 $ — $ 41 $ 80,067 The most significant changes as a result of adopting Topic 606 relate to the Company's contract liabilities which include payments received in advance of performance. Contract liabilities, which are included in "Accrued and other current liabilities" and "Other noncurrent obligations" in the consolidated balance sheets, increased as certain performance obligations, which were previously recognized over time and related to the licensing of certain rights to patents and technology, as well as other performance obligations, are now recognized at a point in time as none of the three criteria for 'over time' recognition under Topic 606 are met. In the second quarter of 2018, the Company early adopted ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." This standard was adopted on April 1, 2018, and resulted in a $1,057 million increase to retained earnings due to the reclassification from accumulated other comprehensive loss. The reclassification was primarily related to the change in the federal corporate tax rate and the effect of the Tax Cuts and Jobs Act of 2017 ("The Act") on the Company's pension plans, derivative instruments, available-for-sale securities and cumulative translation adjustments. This reclassification is reflected in the "Adoption of accounting standards" line in the consolidated statements of equity. See Note 2 for additional information. Current Period Impact of Topic 606 The following table summarizes the effects of adopting Topic 606 on the Company's consolidated balance sheets, which was applied prospectively to contracts not completed at January 1, 2018. The effect of adopting Topic 606 did not have a material impact on the consolidated statements of income and the consolidated statements of cash flows. Summary of Impacts to the Consolidated Balance Sheets As Reported at Sep 30, 2018 Adjustments Balance at Sep 30, 2018 Excluding Adoption of Topic 606 In millions Assets Other current assets $ 911 $ (18 ) $ 893 Total current assets $ 26,960 $ (18 ) $ 26,942 Deferred income tax assets $ 1,716 $ (29 ) $ 1,687 Deferred charges and other assets $ 1,152 $ (43 ) $ 1,109 Total other assets $ 21,793 $ (72 ) $ 21,721 Total Assets $ 79,051 $ (90 ) $ 78,961 Liabilities Accounts payable - Other $ 3,652 $ (10 ) $ 3,642 Income taxes payable $ 613 $ 2 $ 615 Accrued and other current liabilities $ 3,497 $ (17 ) $ 3,480 Total current liabilities $ 16,826 $ (25 ) $ 16,801 Other noncurrent obligations $ 5,709 $ (134 ) $ 5,575 Total other noncurrent liabilities $ 16,802 $ (134 ) $ 16,668 Stockholders' Equity Retained earnings $ 29,489 $ 69 $ 29,558 The Dow Chemical Company's stockholders' equity $ 27,157 $ 69 $ 27,226 Total equity $ 28,338 $ 69 $ 28,407 Total Liabilities and Equity $ 79,051 $ (90 ) $ 78,961 Significant Accounting Policy Updates The Company's significant accounting policy for revenue was updated as a result of the adoption of Topic 606: Revenue The Company recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. To determine revenue recognition for the arrangements that the Company determines are within the scope of Topic 606, the Company performs the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. See Note 3 for additional information on revenue recognition. Revenue related to the Company's insurance operations includes third-party insurance premiums, which are earned over the terms of the related insurance policies and reinsurance contracts. As a result of the adoption of ASU 2018-02, the Company's significant accounting policy for income taxes was updated to indicate the Company uses the portfolio approach for releasing income tax effects from accumulated other comprehensive loss. Dividends Prior to the Merger, the Company declared dividends of $0.46 per share for the three months ended September 30, 2017 ( $1.38 per share for the nine months ended September 30, 2017 ). Effective with the Merger, Dow no longer has publicly traded common stock. Dow's common shares are owned solely by its parent company, DowDuPont. As a result, following the Merger, the Company’s Board of Directors ("Board") determines whether or not there will be a dividend distribution to DowDuPont. See Note 20 for additional information. |
RECENT ACCOUNTING GUIDANCE
RECENT ACCOUNTING GUIDANCE | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING GUIDANCE | RECENT ACCOUNTING GUIDANCE Recently Adopted Accounting Guidance In the second quarter of 2018, the Company early adopted ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities," which amends the hedge accounting recognition and presentation under ASC 815, with the objectives of improving the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities and simplifying the application of hedge accounting by preparers. The new standard expands the strategies eligible for hedge accounting, relaxes the timing requirements of hedge documentation and effectiveness assessments, and permits, in certain cases, the use of qualitative assessments on an ongoing basis to assess hedge effectiveness. The new guidance also requires new disclosures and presentation. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted in any interim or annual period after issuance of the ASU. Entities must adopt the new guidance by applying a modified retrospective approach to hedging relationships existing as of the adoption date. The adoption of the new guidance did not have a material impact on the consolidated financial statements. In the second quarter of 2018, the Company early adopted ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income," which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from The Act, which was enacted on December 22, 2017, and requires certain disclosures about stranded tax effects. An entity has the option of applying the new guidance at the beginning of the period of adoption or retrospectively to each period (or periods) in which the tax effects related to items remaining in accumulated other comprehensive income are recognized. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and early adoption is permitted, including adoption in an interim period for reporting periods in which the financial statements have not yet been issued. The Company's adoption of the new standard was applied prospectively at the beginning of the second quarter of 2018, with a reclassification of the stranded tax effects as a result of the The Act from accumulated other comprehensive loss to retained earnings. See Note 1 for additional information. In the first quarter of 2018, the Company adopted ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," which is the new comprehensive revenue recognition standard that supersedes the revenue recognition requirements in Topic 605, "Revenue Recognition," and most industry specific guidance. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to a customer in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In 2015 and 2016, the Financial Accounting Standards Board ("FASB") issued additional ASUs related to Topic 606 that delayed the effective date of the guidance and clarified various aspects of the new revenue guidance, including principal versus agent considerations, identification of performance obligations, and accounting for licenses, and included other improvements and practical expedients. The new guidance was effective for annual and interim periods beginning after December 15, 2017. The Company elected to adopt the new guidance using the modified retrospective transition method for all contracts not completed as of the date of adoption. The Company recognized the cumulative effect of applying the new revenue standard as an adjustment to the opening balance of retained earnings at the beginning of the first quarter of 2018. The comparative periods have not been restated and continue to be accounted for under Topic 605. The adoption of the new guidance did not have a material impact on the consolidated financial statements. See Notes 1 and 3 for additional disclosures regarding the Company's contracts with customers as well as the impact of adopting Topic 606. In the first quarter of 2018, the Company adopted ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Changes to the current guidance primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company applied the amendments in the new guidance by means of a cumulative-effect adjustment to the opening balance of retained earnings at the beginning of the first quarter of 2018. The adoption of the new guidance did not have a material impact on the consolidated financial statements. See Notes 1 and 17 for additional information. In the first quarter of 2018, the Company adopted ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," which addresses diversity in practice in how certain cash receipts and cash payments are presented and classified in the statements of cash flows and addresses eight specific cash flow issues. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. A key provision in the new guidance impacted the presentation of interests in certain trade accounts receivable conduits, which were retrospectively reclassified from "Operating Activities" to "Investing Activities" in the consolidated statements of cash flows. See Note 1 for additional information. In the first quarter of 2018, the Company adopted ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory," which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments were effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The new guidance was applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings at the beginning of the first quarter of 2018. The adoption of this guidance did not have a material impact on the consolidated financial statements. See Note 1 for additional information. In the first quarter of 2018, the Company adopted ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash," which clarifies how entities should present restricted cash and restricted cash equivalents in the statements of cash flows, and as a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statements of cash flows. An entity with a material balance of restricted cash and restricted cash equivalents must disclose information about the nature of the restrictions. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The new guidance changed the presentation of restricted cash in the consolidated statements of cash flows and was implemented on a retrospective basis in the first quarter of 2018. See Note 1 for additional information. In the first quarter of 2018, the Company adopted ASU 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost," which amends the requirements related to the income statement presentation of the components of net periodic benefit cost for employer sponsored defined benefit pension and other postretirement benefit plans. Under the new guidance, an entity must disaggregate and present the service cost component of net periodic benefit cost in the same income statement line items as other employee compensation costs arising from services rendered during the period, and only the service cost component will be eligible for capitalization. Other components of net periodic benefit cost must be presented separately from the line items that includes the service cost. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Entities were required to use a retrospective transition method to adopt the requirement for separate income statement presentation of the service cost and other components, and a prospective transition method to adopt the requirement to limit the capitalization of benefit cost to the service component. Accordingly, in the first quarter of 2018, the Company used a retrospective transition method to reclassify net periodic benefit cost, other than the service component, from "Cost of sales," "Research and development expenses" and "Selling, general and administrative expenses" to "Sundry income (expense) - net" in the consolidated statements of income. See Note 1 for additional information. Accounting Guidance Issued But Not Adopted at September 30, 2018 In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," and associated ASUs related to Topic 842, which requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The new guidance requires that a lessee recognize assets and liabilities for leases with lease terms of more than twelve months, and recognition, presentation and measurement in the financial statements will depend on its classification as a finance or operating lease. In addition, the new guidance will require disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. Lessor accounting remains largely unchanged from current U.S. GAAP but does contain some targeted improvements to align with the new revenue recognition guidance issued in 2014 (Topic 606). The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, using a modified retrospective approach, and early adoption is permitted. The Company has a cross-functional team in place to evaluate and implement the new guidance. The team continues to review existing lease arrangements and has engaged a third party to assist with the collection of lease data. The Company will elect the optional transition method that allows for a cumulative effect adjustment in the period of adoption, and prior periods will not be restated. The impact of applying other practical expedients and accounting policy elections has been evaluated and the Company is in the process of documenting the related decisions. The Company is currently implementing a third-party software solution in connection with the adoption of the ASU; however, the system is still being modified to comply with the new guidance. The Company continues to enhance accounting systems and update business processes and controls related to the new guidance for leases. Collectively, these activities are expected to facilitate the Company's ability to meet the new accounting and disclosure requirements upon adoption in the first quarter of 2019. The Company is working to quantify the impact and anticipates that the adoption of the new standard will result in a material increase in lease-related assets and liabilities in the consolidated balance sheets. The impact to the Company's consolidated statements of income and consolidated statements of cash flows is not expected to be material. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement," which is part of the FASB disclosure framework project to improve the effectiveness of disclosures in the notes to the financial statements. The amendments in the new guidance remove, modify and add certain disclosure requirements related to fair value measurements covered in ASC 820, "Fair Value Measurement." The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for either the entire standard or only the requirements that modify or eliminate the disclosure requirements, with certain requirements applied prospectively, and all other requirements applied retrospectively to all periods presented. The Company is currently evaluating the impact of adopting this guidance. In August 2018, the FASB issued ASU 2018-14, "Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans," which, as part of the FASB disclosure framework project, removes disclosures that are no longer considered cost beneficial, clarifies the specific requirements of certain disclosures and adds new disclosure requirements that are considered relevant for employers that sponsor defined benefit pension and/or other postretirement benefit plans. The new standard is effective for fiscal years ending after December 15, 2020, and early adoption is permitted. The new guidance should be applied on a retrospective basis for all periods presented. The Company is currently evaluating the impact of adopting this guidance. In August 2018, the FASB issued ASU 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract," which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350, "Intangibles - Goodwill and Other" to determine which implementation costs to capitalize as assets or expense as incurred. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted and an entity can elect to apply the new guidance on a prospective or retrospective basis. The Company is currently evaluating the impact of adopting this guidance. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Guidance In the second quarter of 2018, the Company early adopted ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities," which amends the hedge accounting recognition and presentation under ASC 815, with the objectives of improving the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities and simplifying the application of hedge accounting by preparers. The new standard expands the strategies eligible for hedge accounting, relaxes the timing requirements of hedge documentation and effectiveness assessments, and permits, in certain cases, the use of qualitative assessments on an ongoing basis to assess hedge effectiveness. The new guidance also requires new disclosures and presentation. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted in any interim or annual period after issuance of the ASU. Entities must adopt the new guidance by applying a modified retrospective approach to hedging relationships existing as of the adoption date. The adoption of the new guidance did not have a material impact on the consolidated financial statements. In the second quarter of 2018, the Company early adopted ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income," which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from The Act, which was enacted on December 22, 2017, and requires certain disclosures about stranded tax effects. An entity has the option of applying the new guidance at the beginning of the period of adoption or retrospectively to each period (or periods) in which the tax effects related to items remaining in accumulated other comprehensive income are recognized. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and early adoption is permitted, including adoption in an interim period for reporting periods in which the financial statements have not yet been issued. The Company's adoption of the new standard was applied prospectively at the beginning of the second quarter of 2018, with a reclassification of the stranded tax effects as a result of the The Act from accumulated other comprehensive loss to retained earnings. See Note 1 for additional information. In the first quarter of 2018, the Company adopted ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," which is the new comprehensive revenue recognition standard that supersedes the revenue recognition requirements in Topic 605, "Revenue Recognition," and most industry specific guidance. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to a customer in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In 2015 and 2016, the Financial Accounting Standards Board ("FASB") issued additional ASUs related to Topic 606 that delayed the effective date of the guidance and clarified various aspects of the new revenue guidance, including principal versus agent considerations, identification of performance obligations, and accounting for licenses, and included other improvements and practical expedients. The new guidance was effective for annual and interim periods beginning after December 15, 2017. The Company elected to adopt the new guidance using the modified retrospective transition method for all contracts not completed as of the date of adoption. The Company recognized the cumulative effect of applying the new revenue standard as an adjustment to the opening balance of retained earnings at the beginning of the first quarter of 2018. The comparative periods have not been restated and continue to be accounted for under Topic 605. The adoption of the new guidance did not have a material impact on the consolidated financial statements. See Notes 1 and 3 for additional disclosures regarding the Company's contracts with customers as well as the impact of adopting Topic 606. In the first quarter of 2018, the Company adopted ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Changes to the current guidance primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company applied the amendments in the new guidance by means of a cumulative-effect adjustment to the opening balance of retained earnings at the beginning of the first quarter of 2018. The adoption of the new guidance did not have a material impact on the consolidated financial statements. See Notes 1 and 17 for additional information. In the first quarter of 2018, the Company adopted ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," which addresses diversity in practice in how certain cash receipts and cash payments are presented and classified in the statements of cash flows and addresses eight specific cash flow issues. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. A key provision in the new guidance impacted the presentation of interests in certain trade accounts receivable conduits, which were retrospectively reclassified from "Operating Activities" to "Investing Activities" in the consolidated statements of cash flows. See Note 1 for additional information. In the first quarter of 2018, the Company adopted ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory," which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments were effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The new guidance was applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings at the beginning of the first quarter of 2018. The adoption of this guidance did not have a material impact on the consolidated financial statements. See Note 1 for additional information. In the first quarter of 2018, the Company adopted ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash," which clarifies how entities should present restricted cash and restricted cash equivalents in the statements of cash flows, and as a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statements of cash flows. An entity with a material balance of restricted cash and restricted cash equivalents must disclose information about the nature of the restrictions. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The new guidance changed the presentation of restricted cash in the consolidated statements of cash flows and was implemented on a retrospective basis in the first quarter of 2018. See Note 1 for additional information. In the first quarter of 2018, the Company adopted ASU 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost," which amends the requirements related to the income statement presentation of the components of net periodic benefit cost for employer sponsored defined benefit pension and other postretirement benefit plans. Under the new guidance, an entity must disaggregate and present the service cost component of net periodic benefit cost in the same income statement line items as other employee compensation costs arising from services rendered during the period, and only the service cost component will be eligible for capitalization. Other components of net periodic benefit cost must be presented separately from the line items that includes the service cost. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Entities were required to use a retrospective transition method to adopt the requirement for separate income statement presentation of the service cost and other components, and a prospective transition method to adopt the requirement to limit the capitalization of benefit cost to the service component. Accordingly, in the first quarter of 2018, the Company used a retrospective transition method to reclassify net periodic benefit cost, other than the service component, from "Cost of sales," "Research and development expenses" and "Selling, general and administrative expenses" to "Sundry income (expense) - net" in the consolidated statements of income. See Note 1 for additional information. Accounting Guidance Issued But Not Adopted at September 30, 2018 In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," and associated ASUs related to Topic 842, which requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The new guidance requires that a lessee recognize assets and liabilities for leases with lease terms of more than twelve months, and recognition, presentation and measurement in the financial statements will depend on its classification as a finance or operating lease. In addition, the new guidance will require disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. Lessor accounting remains largely unchanged from current U.S. GAAP but does contain some targeted improvements to align with the new revenue recognition guidance issued in 2014 (Topic 606). The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, using a modified retrospective approach, and early adoption is permitted. The Company has a cross-functional team in place to evaluate and implement the new guidance. The team continues to review existing lease arrangements and has engaged a third party to assist with the collection of lease data. The Company will elect the optional transition method that allows for a cumulative effect adjustment in the period of adoption, and prior periods will not be restated. The impact of applying other practical expedients and accounting policy elections has been evaluated and the Company is in the process of documenting the related decisions. The Company is currently implementing a third-party software solution in connection with the adoption of the ASU; however, the system is still being modified to comply with the new guidance. The Company continues to enhance accounting systems and update business processes and controls related to the new guidance for leases. Collectively, these activities are expected to facilitate the Company's ability to meet the new accounting and disclosure requirements upon adoption in the first quarter of 2019. The Company is working to quantify the impact and anticipates that the adoption of the new standard will result in a material increase in lease-related assets and liabilities in the consolidated balance sheets. The impact to the Company's consolidated statements of income and consolidated statements of cash flows is not expected to be material. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement," which is part of the FASB disclosure framework project to improve the effectiveness of disclosures in the notes to the financial statements. The amendments in the new guidance remove, modify and add certain disclosure requirements related to fair value measurements covered in ASC 820, "Fair Value Measurement." The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for either the entire standard or only the requirements that modify or eliminate the disclosure requirements, with certain requirements applied prospectively, and all other requirements applied retrospectively to all periods presented. The Company is currently evaluating the impact of adopting this guidance. In August 2018, the FASB issued ASU 2018-14, "Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans," which, as part of the FASB disclosure framework project, removes disclosures that are no longer considered cost beneficial, clarifies the specific requirements of certain disclosures and adds new disclosure requirements that are considered relevant for employers that sponsor defined benefit pension and/or other postretirement benefit plans. The new standard is effective for fiscal years ending after December 15, 2020, and early adoption is permitted. The new guidance should be applied on a retrospective basis for all periods presented. The Company is currently evaluating the impact of adopting this guidance. In August 2018, the FASB issued ASU 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract," which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350, "Intangibles - Goodwill and Other" to determine which implementation costs to capitalize as assets or expense as incurred. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted and an entity can elect to apply the new guidance on a prospective or retrospective basis. The Company is currently evaluating the impact of adopting this guidance. |
REVENUE (Notes)
REVENUE (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE Revenue Recognition The majority of the Company's revenue is derived from product sales. In the three and nine months ended September 30, 2018 , 99 percent of the Company's sales related to product sales ( 98 percent in the three and nine months ended September 30, 2017). The remaining sales were primarily related to Dow's insurance operations and licensing of patents and technologies. As of January 1, 2018, the Company accounts for revenue in accordance with Topic 606, "Revenue from Contracts with Customers," except for revenue from Dow's insurance operations, which is accounted for in accordance with Topic 944, "Financial Services - Insurance." Product Sales Product sales consist of sales of the Company's products to manufacturers and distributors. The Company considers order confirmations or purchase orders, which in some cases are governed by master supply agreements, to be contracts with a customer. Product sale contracts are generally short-term contracts where the time between order confirmation and satisfaction of all performance obligations is less than one year. However, the Company has some long-term contracts which can span multiple years. Revenue from product sales is recognized when the customer obtains control of the Company’s product, which occurs at a point in time, usually upon shipment, with payment terms typically in the range of 30 to 60 days after invoicing, depending on business and geographic region. When the Company performs shipping and handling activities after the transfer of control to the customer (e.g., when control transfers prior to shipment), these are considered fulfillment activities, and the costs are accrued when the related revenue is recognized. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenue. The Company has elected to use the practical expedient to expense cash and non-cash sales incentives, as the amortization period for the costs to obtain the contract would have been one year or less. Certain long-term contracts include a series of distinct goods that are delivered continuously to the customer through a pipeline (e.g., feedstocks). For these types of product sales, the Company invoices the customer in an amount that directly corresponds with the value to the customer of the Company’s performance-to-date. As a result, the Company recognizes revenue based on the amount billable to the customer in accordance with the right to invoice practical expedient. The transaction price includes estimates for reductions in revenue from customer rebates and right of returns on product sales. These amounts are estimated based upon the most likely amount of consideration to which the customer will be entitled. The Company’s obligation for right of returns is limited primarily to the Seed principal product group. All estimates are based on historical experience, anticipated performance and the Company’s best judgment at the time, to the extent it is probable, that a significant reversal of revenue recognized will not occur. All estimates for variable consideration are reassessed periodically. The Company has elected the practical expedient to not adjust the amount of consideration for the effects of a significant financing component for all instances in which the period between payment and transfer of the goods will be one year or less. For contracts with multiple performance obligations, the Company allocates the transaction price to each performance obligation based on the relative standalone selling price. The standalone selling price is the observable price which depicts the price as if sold to a similar customer in similar circumstances. Patents, Trademarks and Licenses The Company enters into licensing arrangements in which it licenses certain rights of its patents and technology to customers. Revenue from the majority of the Company’s licenses for patents and technology is derived from sales-based royalties. The Company estimates the amount of sales-based royalties it expects to be entitled to based on historical sales to the customer. For the remaining revenue from licensing arrangements, payments are typically received from the Company’s licensees based on billing schedules established in each contract. Revenue is recognized by the Company when the performance obligation is satisfied. Remaining Performance Obligations Remaining performance obligations represent the transaction price allocated to unsatisfied or partially unsatisfied performance obligations. At September 30, 2018 , the Company had remaining performance obligations related to material rights granted to customers for contract renewal options of $103 million and unfulfilled performance obligations for the licensing of technology of $227 million . The Company expects revenue to be recognized for the remaining performance obligations over the next one to six years. The remaining performance obligations are for product sales that have expected durations of one year or less, product sales of materials delivered through a pipeline for which the Company has elected the right to invoice practical expedient, or variable consideration attributable to royalties for licenses of patents and technology. The Company has received advance payments from customers related to long-term supply agreements that are deferred and recognized over the life of the contract, with remaining contract terms that range up to 22 years. The Company will have rights to future consideration for revenue recognized when product is delivered to the customer. These payments are included in "Accrued and other current liabilities" and "Other noncurrent obligations" in the consolidated balance sheets. Disaggregation of Revenue The Company disaggregates its revenue from contracts with customers by principal product group and geographic region, as the Company believes it best depicts the nature, amount, timing and uncertainty of its revenue and cash flows. See details in the tables below: Net Trade Revenue by Principal Product Group Three Months Ended Sep 30, 2018 Nine Months Ended In millions Coatings & Performance Monomers $ 1,051 $ 3,108 Consumer Solutions 1,446 4,325 Crop Protection 948 3,506 Electronics & Imaging 679 1,958 Hydrocarbons & Energy 1,961 5,573 Industrial Biosciences 126 393 Industrial Solutions 1 1,211 3,564 Nutrition & Health 145 458 Packaging and Specialty Plastics 3,795 11,535 Polyurethanes & CAV 1 2,608 7,852 Safety & Construction 531 1,498 Seed 100 740 Transportation & Advanced Polymers 297 927 Corporate 75 221 Other 3 10 Total $ 14,976 $ 45,668 1. Beginning in the third quarter of 2018, the Construction Chemicals principal product group was combined with Polyurethanes & CAV. Also, certain product lines associated with the oil and gas industry were realigned from the Industrial Solutions principal product group to Polyurethanes & CAV. These changes have been retrospectively reflected in the results presented. Net Trade Revenue by Geographic Region Three Months Ended Sep 30, 2018 Nine Months Ended In millions U.S. & Canada $ 5,296 $ 16,529 EMEA 1 4,440 13,944 Asia Pacific 3,508 10,439 Latin America 1,732 4,756 Total $ 14,976 $ 45,668 1. Europe, Middle East and Africa. Contract Balances The Company receives payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include amounts related to the Company’s contractual right to consideration for completed performance obligations not yet invoiced. Contract liabilities include payments received in advance of performance under the contract and are realized when the associated revenue is recognized under the contract. "Contract liabilities - current" primarily reflects deferred revenue from prepayments from customers for product to be delivered in a time period of 12 months or less. "Contract liabilities - noncurrent" includes advance payments that the Company has received from customers related to long-term supply agreements and royalty payments that are deferred and recognized over the life of the contract. Revenue recognized in the first nine months of 2018 from amounts included in contract liabilities at the beginning of the period was approximately $190 million . In the first nine months of 2018, the amount of contract assets reclassified to receivables as a result of the right to the transaction consideration becoming unconditional was insignificant. The Company did not recognize any asset impairment charges related to contract assets during the period. The following table summarizes the contract balances at September 30, 2018 and December 31, 2017: Contract Balances Sep 30, 2018 Topic 606 Adjustments Jan 1, 2018 Dec 31, 2017 In millions Accounts and notes receivable - Trade $ 8,775 $ — $ 7,338 Contract assets - current 1 $ 36 $ 18 $ — Contract assets - noncurrent 2 $ 47 $ 43 $ — Contract liabilities - current 3 $ 165 $ 50 $ 117 Contract liabilities - noncurrent 4 $ 1,411 $ 117 $ 1,365 1. Included in "Other current assets" in the consolidated balance sheets. 2. Included in "Deferred charges and other assets" in the consolidated balance sheets. 3. Included in "Accrued and other current liabilities" in the consolidated balance sheets. 4. Included in "Other noncurrent obligations" in the consolidated balance sheets. |
DIVESTITURES DIVESTITURES (Note
DIVESTITURES DIVESTITURES (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Merger Remedy - Divestiture of the Global Ethylene Acrylic Acid Copolymers and Ionomers Business On February 2, 2017, as a condition of regulatory approval of the Merger, Dow announced it would divest its global ethylene acrylic acid copolymers and ionomers business ("EAA Business") to SK Global Chemical Co., Ltd. The divestiture included production assets located in Freeport, Texas, and Tarragona, Spain, along with associated intellectual property and product trademarks. Under terms of the purchase agreement, SK Global Chemical Co., Ltd will honor certain customer and supplier contracts and other agreements. On September 1, 2017, the sale was completed for $296 million , net of working capital adjustments, costs to sell and other adjustments, with proceeds subject to customary post-closing adjustments. In the third quarter of 2017, the Company recognized a pretax gain of $227 million on the sale, included in "Sundry income (expense) - net" in the consolidated statements of income. Merger Remedy - Divestiture of a Portion of Dow AgroSciences' Corn Seed Business On July 11, 2017, as a condition of regulatory approval of the Merger, Dow announced it entered into a definitive agreement with CITIC Agri Fund to sell a select portion of Dow AgroSciences' corn seed business in Brazil, including some seed processing plants and seed research centers, a copy of Dow AgroSciences' Brazilian corn germplasm bank, the MORGAN™ brand and a license for the use of the DOW SEMENTES™ brand for a certain period of time, for a purchase price of $1.1 billion . The sale closed in the fourth quarter of 2017. The Company evaluated the divestiture of the EAA Business and determined it did not represent a strategic shift that had a major effect on the Company’s operations and financial results and did not qualify as an individually significant component of the Company. The divestiture of a portion of Dow AgroSciences' corn seed business did not qualify as a component of the Company. As a result, these divestitures were not reported as discontinued operations. |
Restructuring and Asset Related
Restructuring and Asset Related Charges - Net | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | RESTRUCTURING AND ASSET RELATED CHARGES - NET Restructuring Plans DowDuPont Cost Synergy Program In September and November 2017, DowDuPont approved post-merger restructuring actions under the DowDuPont Cost Synergy Program (the "Synergy Program") which is designed to integrate and optimize the organization following the Merger and in preparation for the Intended Business Separations. Based on all actions approved to date under the Synergy Program, the Company expects to record total pretax restructuring charges of approximately $1.3 billion , comprised of approximately $525 million to $575 million of severance and related benefit costs; $400 million to $440 million of asset write-downs and write-offs; and $290 million to $310 million of costs associated with exit and disposal activities. As a result of these actions, the Company recorded pretax restructuring charges of $101 million for the three months ended September 30, 2018, consisting of severance and related benefit costs of $43 million and asset write-downs and write-offs of $58 million . For the nine months ended September 30, 2018, the Company recorded pretax restructuring charges of $352 million , consisting of severance and related benefit costs of $185 million , asset write-downs and write-offs of $133 million and costs associated with exit and disposal activities of $34 million . For the three and nine months ended September 30, 2017, the Company recorded a pretax restructuring charge for severance and related benefit costs of $139 million . The impact of these charges is shown as "Restructuring and asset related charges - net" in the consolidated statements of income. The Company expects to record additional restructuring charges during 2018 and 2019 and substantially complete the Synergy Program by the end of 2019. The Company has recorded pretax restructuring charges of $1,039 million inception-to-date under the Synergy Program, consisting of severance and related benefit costs of $542 million , asset write-downs and write-offs of $420 million and costs associated with exit and disposal activities of $77 million . The following table summarizes the activities related to the Synergy Program. At September 30, 2018 , $267 million was included in "Accrued and other current liabilities" ( $231 million at December 31, 2017 ) and $61 million was included in "Other noncurrent obligations" ( $118 million at December 31, 2017 ) in the consolidated balance sheets. Synergy Program Severance and Related Benefit Costs Asset Write-downs and Write-offs Costs Associated with Exit and Disposal Activities Total In millions 2017 restructuring charges $ 357 $ 287 $ 43 $ 687 Charges against the reserve — (287 ) — (287 ) Cash payments (51 ) — — (51 ) Reserve balance at Dec 31, 2017 $ 306 $ — $ 43 $ 349 2018 restructuring charges 1 185 133 34 352 Charges against the reserve — (133 ) — (133 ) Cash payments (203 ) — (37 ) (240 ) Reserve balance at Sep 30, 2018 $ 288 $ — $ 40 $ 328 1. Included in "Restructuring and asset related charges - net" in the consolidated statements of income. The restructuring charges related to the write-down and write-off of assets in the first nine months of 2018 totaled $133 million and related primarily to the consolidation or shutdown of manufacturing, research and development ("R&D") and other non-manufacturing facilities and the write-down of inventory aligned with seed and crop protection activities. 2016 Restructuring The 2016 restructuring activities were substantially complete at June 30, 2018, with remaining liabilities for severance and related benefit costs and costs associated with exit and disposal activities to be settled over time. Dow expects to incur additional costs in the future related to its restructuring activities. Future costs are expected to include demolition costs related to closed facilities and restructuring plan implementation costs; these costs will be recognized as incurred. The Company also expects to incur additional employee-related costs, including involuntary termination benefits, related to its other optimization activities. These costs cannot be reasonably estimated at this time. |
SUPPLEMENTARY INFORMATION
SUPPLEMENTARY INFORMATION | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUPPLEMENTARY INFORMATION | SUPPLEMENTARY INFORMATION The Company uses "Sundry income (expense) – net" to record a variety of income and expense items such as foreign currency exchange gains and losses, interest income, dividends from investments, gains and losses on sales of investments and assets, non-operating pension and other postretirement benefit plan credits or costs, and certain litigation matters. For the three months ended September 30, 2018 , "Sundry income (expense) - net" was income of $11 million compared with income of $268 million for the three months ended September 30, 2017 , which included a gain of $227 million related to the divestiture of the EAA Business. For the nine months ended September 30, 2018 , "Sundry income (expense) - net" was income of $99 million compared with income of $146 million for the nine months ended September 30, 2017 . In addition to the item previously discussed, the first nine months of 2017 included a $469 million loss related to the Bayer CropScience arbitration matter, gains on sales of assets and other investments and a $137 million gain related to the Nova patent infringement award. See Notes 4 and 12 for additional information. Accrued and Other Current Liabilities "Accrued and other current liabilities" in the consolidated balance sheets were $3,497 million at September 30, 2018 and $4,025 million at December 31, 2017. Accrued payroll, which is a component of "Accrued and other current liabilities," was $915 million at September 30, 2018 and $1,109 million at December 31, 2017. No other component of "Accrued and other current liabilities" was more than 5 percent of total current liabilities. |
INCOME TAXES Income Taxes (Note
INCOME TAXES Income Taxes (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES On December 22, 2017, The Act was enacted. The Act reduces the U.S. federal corporate income tax rate from 35 percent to 21 percent, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously deferred, creates new provisions related to foreign sourced earnings, eliminates the domestic manufacturing deduction and moves towards a territorial system. At September 30, 2018 , the Company had not completed its accounting for the tax effects of The Act; however, as described below, the Company made reasonable estimates of the effects on its existing deferred tax balances and the one-time transition tax. In accordance with Staff Accounting Bulletin 118, income tax effects of The Act may be refined upon obtaining, preparing, or analyzing additional information during the measurement period and such changes could be material. During the measurement period, provisional amounts may also be adjusted for the effects, if any, of interpretative guidance issued by U.S. regulatory and standard-setting bodies. • As a result of The Act, the Company remeasured its U.S. federal deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21 percent . However, the Company is still analyzing certain aspects of The Act and refining its calculations. In the third quarter of 2018, adjustments of $28 million ( $59 million for the nine months ended September 30, 2018) were recorded as a benefit to "Provision for income taxes" in the consolidated statements of income. To date, the provisional amount recorded related to the remeasurement of the Company's deferred tax balance was a cumulative benefit of $9 million . • The Act requires a mandatory deemed repatriation of post-1986 undistributed foreign earnings and profits (“E&P”), which results in a one-time transition tax. The Company has not yet completed its calculation of the total post-1986 foreign E&P for its foreign subsidiaries as E&P will not be finalized until the fourth quarter of 2018, after the DowDuPont federal income tax return is filed. Adjustments for the three and nine months ended September 30, 2018, were a charge of $11 million recorded to "Provision for income taxes." To date, the Company has recorded a cumulative provisional charge of $876 million with respect to the one-time transition tax. • In the nine months ended September 30, 2018, the Company recorded an indirect impact of The Act related to prepaid tax on the intercompany sale of inventory. The amount recorded related to the inventory was a $38 million charge to "Provision for income taxes." • For tax years beginning after December 31, 2017, The Act introduced new provisions for U.S. taxation of certain global intangible low-taxed income ("GILTI"). The Company is evaluating the policy election on whether the additional liability will be recorded in the period in which it is incurred or recognized for the basis differences that would be expected to reverse in future years. In the third quarter of 2017, as a result of the Merger and subsequent change in the Company's ownership, certain net operating loss carryforwards available for the Company's consolidated German tax group were derecognized. In addition, the sale of stock between two consolidated subsidiaries in 2014 created a gain that was initially deferred for tax purposes. This deferred gain became taxable as a result of activities executed in anticipation of the intended separation of DowDuPont into three publicly traded companies. As a result, in the third quarter of 2017, the Company decreased "Deferred income tax assets" in the consolidated balance sheets and recorded a charge of $267 million to "Provision for income taxes." Each year the Company files tax returns in the various national, state and local income taxing jurisdictions in which it operates. These tax returns are subject to examination and possible challenge by the tax authorities. Positions challenged by the tax authorities may be settled or appealed by the Company. As a result, there is an uncertainty in income taxes recognized in the Company’s financial statements in accordance with accounting for income taxes and accounting for uncertainty in income taxes. The ultimate resolution of such uncertainties is not expected to have a material impact on the Company's results of operations. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES The following table provides a breakdown of inventories: Inventories Sep 30, 2018 Dec 31, 2017 In millions Finished goods $ 5,877 $ 5,213 Work in process 2,386 1,747 Raw materials 1,053 898 Supplies 860 848 Total $ 10,176 $ 8,706 Adjustment of inventories to a LIFO basis (561 ) (330 ) Total inventories $ 9,615 $ 8,376 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2018 | |
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: Goodwill In millions Net goodwill at Dec 31, 2017 $ 13,938 Foreign currency impact (67 ) Net goodwill at Sep 30, 2018 $ 13,871 The following table provides information regarding the Company’s other intangible assets: Other Intangible Assets Sep 30, 2018 Dec 31, 2017 In millions Gross Carrying Amount Accum Amort Net Gross Carrying Amount Accum Amort Net Intangible assets with finite lives: Developed technology $ 3,255 $ (1,869 ) $ 1,386 $ 3,263 $ (1,690 ) $ 1,573 Software 1,495 (853 ) 642 1,420 (780 ) 640 Trademarks/tradenames 679 (606 ) 73 697 (570 ) 127 Customer-related 4,913 (2,086 ) 2,827 5,035 (1,965 ) 3,070 Other 243 (167 ) 76 245 (156 ) 89 Total other intangible assets, finite lives $ 10,585 $ (5,581 ) $ 5,004 $ 10,660 $ (5,161 ) $ 5,499 In-process research and development 50 — 50 50 — 50 Total other intangible assets $ 10,635 $ (5,581 ) $ 5,054 $ 10,710 $ (5,161 ) $ 5,549 The following table provides information regarding amortization expense related to other intangible assets: Amortization Expense Three Months Ended Nine Months Ended In millions Sep 30, 2018 Sep 30, 2017 Sep 30, 2018 Sep 30, 2017 Other intangible assets, excluding software $ 155 $ 155 $ 469 $ 467 Software, included in “Cost of sales” $ 25 $ 21 $ 73 $ 61 Total estimated amortization expense for 2018 and the five succeeding fiscal years is as follows: Estimated Amortization Expense In millions 2018 $ 712 2019 $ 645 2020 $ 613 2021 $ 587 2022 $ 521 2023 $ 501 |
TRANSFERS OF FINANCIAL ASSETS
TRANSFERS OF FINANCIAL ASSETS | 9 Months Ended |
Sep. 30, 2018 | |
Transfers and Servicing [Abstract] | |
TRANSFERS OF FINANCIAL ASSETS | TRANSFERS OF FINANCIAL ASSETS The Company has historically sold trade accounts receivable of select North American entities and qualifying trade accounts receivable of select European entities on a revolving basis to certain multi-seller commercial paper conduit entities ("conduits"). The proceeds received are comprised of cash and interests in specified assets of the conduits (the receivables sold by 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. In the fourth quarter of 2017, the Company suspended further sales of trade accounts receivable through these facilities and began reducing outstanding balances through collections of trade accounts receivable previously sold to such conduits. In September and October 2018, the North American and European facilities, respectively, were amended and the terms of the agreements changed from off-balance sheet arrangements to secured borrowing arrangements. See Note 11 for additional information on the secured borrowing arrangements. The following table summarizes the carrying value of interests held, which represents the Company's maximum exposure to loss related to the receivables sold, and the percentage of anticipated credit losses related to the trade accounts receivable sold. Also provided is the sensitivity of the fair value of the interests held to hypothetical adverse changes in the anticipated credit losses; amounts shown below are the corresponding hypothetical decreases in the carrying value of interests. Interests Held Sep 30, Dec 31, In millions Carrying value of interests held $ — $ 677 Percentage of anticipated credit losses — % 2.64 % Impact to carrying value - 10% adverse change $ — $ — Impact to carrying value - 20% adverse change $ — $ 1 Credit losses, net of any recoveries, on receivables sold were insignificant for the three and nine months ended September 30, 2018 and 2017 . Following is an analysis of certain cash flows between the Company and the conduits: Cash Proceeds Three Months Ended Nine Months Ended In millions Sep 30, Sep 30, Sep 30, Sep 30, Collections reinvested in revolving receivables $ — $ 6,295 $ — $ 18,027 Interests in conduits 1 $ 1 $ 2,157 $ 657 $ 6,989 1. Presented in "Investing Activities" in the consolidated statements of cash flows in accordance with ASU 2016-15. See Notes 1 and 2 for additional information. In connection with the review and implementation of ASU 2016-15, the Company also changed the prior year value of “Interests in conduits” due to additional interpretive guidance of the required method for calculating the cash received from beneficial interests in the conduits, including additional guidance from the SEC's Office of the Chief Accountant issued in the third quarter of 2018 that indicated an entity must evaluate daily transaction activity to calculate the value of cash received from beneficial interests in conduits. Following is additional information related to the sale of receivables under these facilities: Trade Accounts Receivable Sold Sep 30, Dec 31, In millions Delinquencies on sold receivables still outstanding $ — $ 82 Trade accounts receivable outstanding and derecognized $ — $ 612 |
NOTES PAYABLE, LONG-TERM DEBT A
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES | NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES A summary of the Company's notes payable, long-term debt and available credit facilities can be found in Note 15 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . If applicable, updates have been included in the respective section below. 2018 Activity In the first nine months of 2018, the Company redeemed $333 million of 5.7 percent notes at maturity and an aggregate principal amount of $86 million of International Notes ("InterNotes") at maturity. In addition, approximately $75 million of long-term debt was repaid by consolidated variable interest entities. The Company also called an aggregate principal amount of $343 million tax-exempt bonds of various interest rates and maturities in 2029, 2033 and 2038. As a result of the redemptions, the Company recognized a pretax loss of $7 million on the early extinguishment of debt, included in “Sundry income (expense) - net” in the consolidated statements of income. 2017 Activity In the first nine months of 2017, the Company redeemed $436 million of 6.0 percent notes at maturity and an aggregate principal amount of $31 million of InterNotes at maturity. In addition, approximately $60 million of long-term debt was repaid by consolidated variable interest entities. Committed Credit Facilities On May 27, 2018, the Company renewed a $200 million Bilateral Revolving Credit Facility agreement, which has a maturity date in May 2020 and provides for interest at floating rates, as defined in the agreement. On July 20, 2018, the Company renewed a $200 million Bilateral Revolving Credit Facility agreement, which has a maturity date in July 2020 and provides for interest at floating rates, as defined in the agreement. On August 4, 2018, the Company renewed a $100 million Bilateral Revolving Credit Facility agreement, which has a maturity date in August 2020 and provides for interest at floating rates, as defined in the agreement. On October 30, 2018, the Company terminated and replaced its $5.0 billion Five Year Competitive Advance and Revolving Credit Facility Agreement under substantially similar terms and conditions, which has a maturity date in October 2023. In addition, the Company amended a $100 million Bilateral Revolving Credit Facility agreement, which has a maturity date in October 2019 and provides for interest at floating rates, as defined in the agreement. Term Loan Facility In connection with the ownership restructure of Dow Silicones on May 31, 2016, Dow Silicones incurred $4.5 billion of indebtedness under a certain third party credit agreement ("Term Loan Facility"). The Company subsequently guaranteed the obligations of Dow Silicones under the Term Loan Facility and, as a result, the covenants and events of default applicable to the Term Loan Facility are substantially similar to the covenants and events of default set forth in the Company's Five Year Competitive Advance and Revolving Credit Facility. In the second quarter of 2018, Dow Silicones exercised the 19-month extension option making amounts borrowed under the Term Loan Facility repayable on December 30, 2019. In addition, Dow Silicones amended the Term Loan Facility to include an additional 2-year extension option, at Dow Silicones' election, upon satisfaction of certain customary conditions precedent. Secured Borrowing In September 2018, the Company renewed its North American accounts receivable securitization facility for a one year term and amended the terms of the agreement from an off-balance sheet arrangement to a secured borrowing arrangement, with a borrowing capacity up to $800 million . Under the structure of the amended agreement, the Company will use select trade accounts receivable to collateralize the credit facility with certain lenders. At September 30, 2018 , the facility had not been drawn upon. At September 30, 2018 , the Company had total committed credit facilities of $11.7 billion and available credit facilities of $7.2 billion . In October 2018, the Company renewed its European accounts receivable securitization facility for a two year term and amended the terms of the agreement from an off-balance sheet arrangement to a secured borrowing arrangement, with a borrowing capacity up to Euro 400 million . Under the structure of the amended agreement, the Company will use select trade accounts receivable to collateralize the credit facility with certain lenders. 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 nine months of 2018. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 , the Company had accrued obligations of $826 million for probable environmental remediation and restoration costs, including $136 million for the remediation of Superfund sites. These obligations are included in "Accrued and other current liabilities" and "Other noncurrent obligations" in the consolidated balance sheets. This is management’s best estimate of the costs for remediation and restoration with respect to environmental matters for which the Company has accrued liabilities, although it is reasonably possible that the ultimate cost with respect to these particular matters could range up to 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 environmental conditions, changing governmental regulations and legal standards regarding liability, and emerging remediation technologies for handling site remediation and restoration. At December 31, 2017 , the Company had accrued obligations of $878 million for probable environmental remediation and restoration costs, including $152 million for the remediation of Superfund sites. Litigation Asbestos-Related Matters of Union Carbide Corporation A summary of Asbestos-Related Matters of Union Carbide Corporation can be found in Note 16 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. Introduction Union Carbide is and has been involved in a large number of asbestos-related suits filed primarily in state courts during the past four decades. These suits principally allege personal injury resulting from exposure to asbestos-containing products and frequently seek both actual and punitive damages. The alleged claims primarily relate to products that Union Carbide sold in the past, alleged exposure to asbestos-containing products located on Union Carbide’s premises, and Union Carbide’s responsibility for asbestos suits filed against a former Union Carbide subsidiary, Amchem Products, Inc. (“Amchem”). In many cases, plaintiffs are unable to demonstrate that they have suffered any compensable loss as a result of such exposure, or that injuries incurred in fact resulted from exposure to Union Carbide’s products. Union Carbide expects more asbestos-related suits to be filed against Union Carbide and Amchem in the future, and will aggressively defend or reasonably resolve, as appropriate, both pending and future claims. Estimating the Asbestos-Related Liability Since 2003, Union Carbide has engaged Ankura Consulting Group, LLC ("Ankura"), a third party actuarial specialist, to review Union Carbide's historical asbestos-related claim and resolution activity in order to assist Union Carbide's management in estimating the asbestos-related liability. Each year, Ankura has reviewed the claim and resolution activity to determine the appropriateness of updating the most recent Ankura study. Based on the December 2017 Ankura review and Union Carbide's own review of the data, Union Carbide's total asbestos-related liability through the terminal year of 2049, including asbestos-related defense and processing costs, was $1,369 million at December 31, 2017 , and included in “Accrued and other current liabilities” and “Asbestos-related liabilities - noncurrent” in the consolidated balance sheets. Each quarter, Union Carbide reviews claims filed, settled and dismissed, as well as average settlement and resolution costs by disease category. Union Carbide also considers additional quantitative and qualitative factors such as the nature of pending claims, trial experience of Union Carbide and other asbestos defendants, current spending for defense and processing costs, significant appellate rulings and legislative developments, trends in the tort system, and their respective effects on expected future resolution costs. Union Carbide's management considers all these factors in conjunction with the most recent Ankura study and determines whether a change in the estimate is warranted. Based on Union Carbide's review of 2018 activity, it was determined that no adjustment to the accrual was required at September 30, 2018 . Union Carbide’s asbestos-related liability for pending and future claims and defense and processing costs was $1,290 million at September 30, 2018 , and approximately 16 percent of the recorded liability related to pending claims and approximately 84 percent related to future claims. Summary The Company's management believes the amounts recorded by Union Carbide for the asbestos-related liability (including defense and processing costs) reflect reasonable and probable estimates of the liability based upon current, known facts. However, future events, such as the number of new claims to be filed and/or received each year, the average cost of defending and disposing of each such claim, as well as the numerous uncertainties surrounding asbestos litigation in the United States over a significant period of time, could cause the actual costs for Union Carbide to be higher or lower than those projected or those recorded. Any such events could result in an increase or decrease in the recorded liability. Because of the uncertainties described above, Union Carbide cannot estimate the full range of the cost of resolving pending and future asbestos-related claims facing Union Carbide and Amchem. As a result, it is reasonably possible that an additional cost of disposing of Union Carbide's asbestos-related claims, including future defense and processing costs, could have a material impact on the Company's results of operations and cash flows for a particular period and on the consolidated financial position. Bayer CropScience v. Dow AgroSciences ICC Arbitration A summary of the Bayer CropScience v. Dow AgroSciences ICC Arbitration can be found in Note 16 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. On August 13, 2012, Bayer CropScience AG and Bayer CropScience NV (together, “Bayer”) filed a request for arbitration with the International Chamber of Commerce ("ICC") International Court of Arbitration against Dow AgroSciences LLC, a wholly owned subsidiary of the Company, and other subsidiaries of the Company (collectively, “DAS”) under a 1992 license agreement executed by predecessors of the parties (the “License Agreement”). In its request for arbitration, Bayer alleged that (i) DAS breached the License Agreement, (ii) the License Agreement was properly terminated with no ongoing rights to DAS, (iii) DAS infringed its patent rights related to the use of the pat gene in certain soybean and cotton seed products, and (iv) Bayer was entitled to monetary damages and injunctive relief. DAS denied that it breached the License Agreement and asserted that the License Agreement remained in effect because it was not properly terminated. DAS also asserted that all of Bayer’s patents at issue are invalid and/or not infringed, and, therefore, for these reasons (and others), a license was not required. A three-member arbitration tribunal presided over the arbitration proceeding (the “tribunal”). In a decision dated October 9, 2015, the tribunal determined that (i) DAS breached the License Agreement, (ii) Bayer properly terminated the License Agreement, (iii) all of the patents remaining in the proceeding are valid and infringed, and (iv) that Bayer is entitled to monetary damages in the amount of $455 million inclusive of pre-judgment interest and costs (the “arbitral award”). One of the arbitrators, however, issued a partial dissent finding that all of the patents are invalid based on the double-patenting doctrine. The tribunal also denied Bayer’s request for injunctive relief. On March 1, 2017, the U.S. Court of Appeals for the Federal Circuit affirmed the arbitral award. As a result of this action, in the first quarter of 2017, the Company recorded a loss of $469 million , inclusive of the arbitral award and post-judgment interest, which was included in "Sundry income (expense) - net" in the consolidated statements of income. On May 26, 2017, the Company paid the $469 million arbitral award to Bayer as a result of that decision. On September 11, 2017, DAS filed a petition for writ of certiorari with the United States Supreme Court to review the case, but the Court denied DAS’s petition. The litigation is now concluded with no risk of further liability. Rocky Flats Matter A summary of the Rocky Flats Matter can be found in Note 16 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. The Company and Rockwell International Corporation ("Rockwell") (collectively, the "defendants") were defendants in a class action lawsuit filed in 1990 on behalf of property owners ("plaintiffs") in Rocky Flats, Colorado, who asserted claims for nuisance and trespass based on alleged property damage caused by plutonium releases from a nuclear weapons facility owned by the U.S. Department of Energy ("DOE") but operated by Dow and Rockwell. The plaintiffs tried their case as a public liability action under the Price Anderson Act ("PAA"). Dow and Rockwell litigated this matter in the U.S. District Court for the District of Colorado, the U.S. Tenth Circuit Court of Appeals and then filed a petition for writ of certiorari in the United States Supreme Court. On May 18, 2016, Dow, Rockwell and the plaintiffs entered into a settlement agreement for $375 million , of which $131 million was paid by Dow. The DOE authorized the settlement pursuant to the PAA and the nuclear hazards indemnity provisions contained in Dow's and Rockwell's contracts. On April 28, 2017, the District Court conducted a fairness hearing and granted final judgment approving the class settlement and dismissed class claims against the defendants ("final judgment order"). On December 13, 2016, the United States Civil Board of Contract Appeals unanimously ordered the United States government to pay the amounts stipulated in the settlement agreement. On January 17, 2017, the Company received a full indemnity payment of $131 million from the United States government for Dow's share of the class settlement. On January 26, 2017, the Company placed $130 million in an escrow account for the settlement payment owed to the plaintiffs. The funds were subsequently released from escrow as a result of the final judgment order. The litigation is now concluded. Dow Silicones Chapter 11 Related Matters A summary of the Dow Silicones Chapter 11 Related Matters can be found in Note 16 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. Introduction In 1995, Dow Silicones, then a 50:50 joint venture between Dow and Corning Incorporated ("Corning"), voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code in order to resolve Dow Silicones’ breast implant liabilities and related matters (the “Chapter 11 Proceeding”). Dow Silicones emerged from the Chapter 11 Proceeding on June 1, 2004 (the “Effective Date”) and is implementing the Joint Plan of Reorganization (the “Plan”). The Plan provides funding for the resolution of breast implant and other product liability litigation covered by the Chapter 11 Proceeding and provides a process for the satisfaction of commercial creditor claims in the Chapter 11 Proceeding. As of June 1, 2016, Dow Silicones is a wholly owned subsidiary of Dow. Breast Implant and Other Product Liability Claims Under the Plan, a product liability settlement program administered by an independent claims office (the “Settlement Facility”) was created to resolve breast implant and other product liability claims. Product liability claimants rejecting the settlement program in favor of pursuing litigation must bring suit against a litigation facility (the “Litigation Facility”). Dow Silicones has an obligation to fund the Settlement Facility and the Litigation Facility over a 16-year period, commencing at the Effective Date. At September 30, 2018 , Dow Silicones and its insurers have made life-to-date payments of $1,762 million to the Settlement Facility and the Settlement Facility reported an unexpended balance of $122 million . Dow Silicones' liability for breast implant and other product liability claims ("Implant Liability") was $263 million at September 30, 2018 ( $263 million at December 31, 2017 ), which was included in "Other noncurrent obligations" in the consolidated balance sheets. Dow Silicones is not aware of circumstances that would change the factors used in estimating the Implant Liability and believes the recorded liability reflects the best estimate of the remaining funding obligations under the Plan; however, the estimate relies upon a number of significant assumptions, including: future claim filing levels in the Settlement Facility will be similar to those in a prior settlement program, which management uses to estimate future claim filing levels for the Settlement Facility; future acceptance rates, disease mix, and payment values will be materially consistent with historical experience; no material negative outcomes in future controversies or disputes over Plan interpretation will occur; and the Plan will not be modified. If actual outcomes related to any of these assumptions prove to be materially different, the future liability to fund the Plan may be materially different than the amount estimated. If Dow Silicones was ultimately required to fund the full liability up to the maximum capped value, the liability would be $2,081 million at September 30, 2018 . Commercial Creditor Issues The Plan provides that each of Dow Silicones' commercial creditors (the “Commercial Creditors”) would receive in cash the sum of (a) an amount equal to the principal amount of their claims and (b) interest on such claims. The actual amount of interest that will ultimately be paid to these Commercial Creditors is uncertain due to pending litigation between Dow Silicones and the Commercial Creditors regarding the appropriate interest rates to be applied to outstanding obligations from the 1995 bankruptcy filing date through the Effective Date, as well as the presence of any recoverable fees, costs and expenses. Upon the Plan becoming effective, Dow Silicones paid approximately $1,500 million to the Commercial Creditors, representing principal and an amount of interest that Dow Silicones considers undisputed. On May 10, 2017, the U.S. District Court for the Eastern District of Michigan entered a stipulated order resolving pending discovery motions and established a discovery schedule for the Commercial Creditors matter. As a result, Dow Silicones and its third party consultants conducted further analysis of the Commercial Creditors claims and defenses. This analysis indicated the estimated remaining liability to Commercial Creditors to be within a range of $77 million to $260 million . No single amount within the range appeared to be a better estimate than any other amount within the range. Therefore, Dow Silicones recorded the minimum liability within the range, which resulted in a decrease to the Commercial Creditor liability of $33 million in the second quarter of 2017, which was included in "Sundry income (expense) - net" in the consolidated statements of income. At September 30, 2018 , the liability related to Dow Silicones' potential obligation to its Commercial Creditors in the Chapter 11 Proceeding was $81 million and is included in "Accrued and other current liabilities" in the consolidated balance sheets ( $78 million at December 31, 2017 ). The actual amount of interest that will be paid to these creditors is uncertain and will ultimately be resolved through continued proceedings in the District Court. Indemnifications In connection with the June 1, 2016, ownership restructure of Dow Silicones, the Company is indemnified by Corning for 50 percent of future losses associated with certain pre-closing liabilities, including the Implant Liability and Commercial Creditors matters described above, subject to certain conditions and limits. The maximum amount of indemnified losses which may be recovered are subject to a cap that declines over time. No indemnification assets were recorded at September 30, 2018 or December 31, 2017. Summary The amounts recorded by Dow Silicones for the Chapter 11 related matters described above were based on current, known facts, which management believes reflect reasonable and probable estimates of the liability. However, future events could cause the actual costs for Dow Silicones to be higher or lower than those projected or those recorded. Any such events could result in an increase or decrease in the recorded liability. 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, employment matters, governmental tax and regulation disputes, 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 may provide coverage that could be utilized to minimize the financial impact, if any, of certain contingencies described above. It is the opinion of the Company’s management that the possibility is remote that the aggregate of all such other claims and lawsuits will have a material adverse impact on the results of operations, financial condition and cash flows of the Company. Gain Contingency - Dow v. Nova Chemicals Corporation Patent Infringement Matter A summary of the Dow v. Nova Chemicals Corporation Patent Infringement Matter can be found in Note 16 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. On December 9, 2010, Dow filed suit in the Federal Court in Ontario, Canada ("Federal Court") alleging that Nova Chemicals Corporation ("Nova") was infringing the Company's Canadian polyethylene patent 2,106,705. Nova counterclaimed on the grounds of invalidity and non-infringement. On June 29, 2017, the Federal Court issued a Confidential Supplemental Judgment, concluding that Nova must pay $645 million Canadian dollars (equivalent to $495 million U.S. dollars) to Dow, plus pre- and post-judgment interest, for which Dow received payment of $501 million from Nova on July 6, 2017. Although Nova is appealing portions of the damages judgment, certain portions of it are indisputable and will be owed to Dow regardless of the outcome of any further appeals by Nova. As a result of these actions and in accordance with ASC 450-30 "Gain Contingencies," the Company recorded a $160 million pretax gain in the second quarter of 2017 of which $137 million was included in "Sundry income (expense) - net" and $23 million was included in "Selling, general and administrative expenses" in the consolidated statements of income. At September 30, 2018 , the Company had $341 million ( $341 million at December 31, 2017 ) included in "Other noncurrent obligations" related to the disputed portion of the damages judgment. Dow is confident of its chances of defending the entire judgment on appeal, particularly the trial court's determinations on important factual issues, which will be accorded deferential review on appeal. Guarantees The following table provides a summary of the final expiration, maximum future payments and recorded liability reflected in the consolidated balance sheets for each type of guarantee: Guarantees Sep 30, 2018 Dec 31, 2017 In millions Final Expiration Maximum Future Payments Recorded Liability Final Expiration Maximum Future Payments Recorded Liability Guarantees 2023 $ 4,594 $ 35 2023 $ 4,774 $ 49 Residual value guarantees 2027 895 130 2027 889 135 Total guarantees $ 5,489 $ 165 $ 5,663 $ 184 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 less than five 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 remote. The Company has 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 $12.1 billion of Total Project Financing outstanding at September 30, 2018 ( $12.4 billion at December 31, 2017 ). 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 expected by the middle of 2019, and must occur no later than December 2020. 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. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | The following table summarizes the changes and after-tax balances of each component of accumulated other comprehensive loss ("AOCL") for the nine months ended September 30, 2018 and 2017 : Accumulated Other Comprehensive Loss Unrealized Gains (Losses) on Investments Cumulative Translation Adj Pension and Other Postretire Benefits Derivative Instruments Total Accum Other Comp Loss In millions Balance at Jan 1, 2017 $ 43 $ (2,381 ) $ (7,389 ) $ (95 ) $ (9,822 ) Other comprehensive income (loss) before reclassifications 50 827 — (52 ) 825 Amounts reclassified from accumulated other comprehensive income (loss) (93 ) (8 ) 308 (5 ) 202 Net other comprehensive income (loss) $ (43 ) $ 819 $ 308 $ (57 ) $ 1,027 Balance at Sep 30, 2017 $ — $ (1,562 ) $ (7,081 ) $ (152 ) $ (8,795 ) Balance at Jan 1, 2018 1 $ 17 $ (1,481 ) $ (6,998 ) $ (109 ) $ (8,571 ) Other comprehensive income (loss) before reclassifications (36 ) (190 ) — 271 45 Amounts reclassified from accumulated other comprehensive income (loss) 5 (2 ) 373 61 437 Net other comprehensive income (loss) $ (31 ) $ (192 ) $ 373 $ 332 $ 482 Reclassification of stranded tax effects 2 $ (1 ) $ (107 ) $ (927 ) $ (22 ) $ (1,057 ) Balance at Sep 30, 2018 $ (15 ) $ (1,780 ) $ (7,552 ) $ 201 $ (9,146 ) 1. The beginning balance of "Unrealized gains (losses) on investments" was increased by $20 million to reflect the impact of the adoption of ASU 2016-01. See Notes 1 and 2 for additional information. 2. Amounts reclassified to retained earnings as a result of the adoption of ASU 2018-02. See Notes 1 and 2 for additional information. The tax effects on the net activity related to each component of other comprehensive income (loss) for the three and nine months ended September 30, 2018 and 2017 were as follows: Tax Benefit (Expense) 1 Three Months Ended Nine Months Ended In millions Sep 30, 2018 Sep 30, 2017 Sep 30, 2018 Sep 30, 2017 Unrealized gains (losses) on investments $ (2 ) $ 28 $ 7 $ 24 Cumulative translation adjustments (4 ) (23 ) (24 ) (49 ) Pension and other postretirement benefit plans (33 ) (48 ) (95 ) (143 ) Derivative instruments (49 ) (19 ) (58 ) 2 Tax expense from income taxes related to other comprehensive income (loss) items $ (88 ) $ (62 ) $ (170 ) $ (166 ) 1. Prior period amounts were updated to conform with the current year presentation. A summary of the reclassifications out of AOCL for the three and nine months ended September 30, 2018 and 2017 is provided as follows: Reclassifications Out of Accumulated Other Comprehensive Loss Three Months Ended Nine Months Ended Consolidated Statements of Income Classification Sep 30, 2018 Sep 30, 2017 Sep 30, 2018 Sep 30, 2017 In millions Unrealized (gains) losses on investments $ 4 $ (96 ) $ 7 $ (143 ) See (1) below Tax expense (benefit) (1 ) 33 (2 ) 50 See (2) below After tax $ 3 $ (63 ) $ 5 $ (93 ) Cumulative translation adjustments $ — $ (2 ) $ (2 ) $ (8 ) See (3) below Pension and other postretirement benefit plans $ 156 $ 153 $ 468 $ 451 See (4) below Tax benefit (33 ) (48 ) (95 ) (143 ) See (2) below After tax $ 123 $ 105 $ 373 $ 308 Derivative instruments $ 16 $ 14 $ 75 $ (1 ) See (5) below Tax benefit (4 ) (3 ) (14 ) (4 ) See (2) below After tax $ 12 $ 11 $ 61 $ (5 ) Total reclassifications for the period, after tax $ 138 $ 51 $ 437 $ 202 1. "Net sales" and "Sundry income (expense) - net." 2. "Provision for income taxes." 3. "Sundry income (expense) - net." 4. These AOCL components are included in the computation of net periodic benefit cost of the Company's defined benefit pension and other postretirement benefit plans. See Note 15 for additional information. 5. "Cost of sales," "Sundry income (expense) - net" and "Interest expense and amortization of debt discount." |
NONCONTROLLING INTERESTS Noncon
NONCONTROLLING INTERESTS Noncontrolling Interests | 9 Months Ended |
Sep. 30, 2018 | |
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 "Noncontrolling interests." The amount of consolidated net income attributable to the Company and the noncontrolling interests are both presented on the face of the consolidated statements of income. The following table summarizes the activity for equity attributable to noncontrolling interests for the three and nine months ended September 30, 2018 and 2017 : Noncontrolling Interests Three Months Ended Nine Months Ended In millions Sep 30, 2018 Sep 30, 2017 Sep 30, 2018 Sep 30, 2017 Balance at beginning of period $ 1,152 $ 1,168 $ 1,186 $ 1,242 Net income attributable to noncontrolling interests 36 22 102 87 Distributions to noncontrolling interests 1 (2 ) (7 ) (63 ) (55 ) Deconsolidation of noncontrolling interests 2 — — — (119 ) Cumulative translation adjustments (5 ) 5 (45 ) 33 Other — 1 1 1 Balance at end of period $ 1,181 $ 1,189 $ 1,181 $ 1,189 1. Net of dividends paid to a joint venture, which were reclassified to "Equity in earnings of nonconsolidated affiliates" in the consolidated statements of income, totaled zero for the three months ended September 30, 2018 ( zero for the three months ended September 30, 2017 ) and $6 million for the nine months ended September 30, 2018 ( $3 million for the nine months ended September 30, 2017 ). 2. On June 30, 2017, the Company sold its ownership interest in SKC Haas Display Films group of companies. |
PENSION PLANS AND OTHER POSTRET
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS A summary of the Company's pension plans and other postretirement benefits 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, 2017 . The following table provides the components of the Company's net periodic benefit cost for all significant plans: Net Periodic Benefit Cost for All Significant Plans Three Months Ended Nine Months Ended In millions Sep 30, Sep 30, Sep 30, Sep 30, Defined Benefit Pension Plans: Service cost $ 131 $ 127 $ 396 $ 378 Interest cost 216 221 651 660 Expected return on plan assets (401 ) (388 ) (1,211 ) (1,156 ) Amortization of prior service credit (6 ) (6 ) (18 ) (18 ) Amortization of net loss 168 161 509 476 Curtailment/settlement 1 — — — (6 ) Net periodic benefit cost $ 108 $ 115 $ 327 $ 334 Other Postretirement Benefits: Service cost $ 3 $ 3 $ 9 $ 9 Interest cost 11 14 33 41 Amortization of net gain (6 ) (2 ) (18 ) (5 ) Net periodic benefit cost $ 8 $ 15 $ 24 $ 45 1. The 2017 impact relates to the curtailment and settlement of a pension plan in Korea. On January 1, 2018, the Company adopted ASU 2017-07, which impacted the presentation of the components of net periodic benefit cost in the consolidated statements of income. Net periodic benefit cost, other than the service cost component, was retrospectively reclassified to "Sundry income (expense) - net" in the consolidated statements of income. See Notes 1 and 2 for additional information. The Company's funding policy is to contribute to defined benefit pension plans in the U.S. and a number of other countries when pension laws and/or economics either require or encourage funding. In the third quarter of 2018 , the Company made a $1,100 million discretionary contribution to its principal U.S. pension plan and increased its total 2018 estimated pension contributions to approximately $1,600 million , of which $1,538 million had been contributed through September 30, 2018 . |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2018 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION A summary 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, 2017 . Stock Incentive Plan The Company grants stock-based compensation to employees and non-employee directors under The Dow Chemical Company Amended and Restated 2012 Stock Incentive Plan (the "2012 Plan"). In connection with the Merger, on August 31, 2017, all outstanding Dow stock options and deferred stock awards were converted into stock options and deferred stock awards with respect to DowDuPont common stock. The stock options and deferred stock awards have the same terms and conditions under the applicable plans and award agreements prior to the Merger. Dow and DuPont did not merge their stock-based compensation plans as a result of the Merger. The Dow and DuPont stock-based compensation plans were assumed by DowDuPont and continue in place with the ability to grant and issue DowDuPont common stock. Most of the Company's stock-based compensation awards are granted in the first quarter of each year. There was minimal grant activity following the first quarter of 2018 . In the first quarter of 2018 , the Company granted the following stock-based compensation awards to employees under the 2012 Plan: • 6.3 million stock options with a weighted-average exercise price of $71.85 per share and a weighted-average fair value of $15.46 per share; and • 1.9 million restricted stock units (formerly termed deferred stock) with a weighted-average fair value of $71.83 per share. Effective with the first quarter 2018 grant, the Company began using the Black-Scholes option valuation model to estimate the fair value of stock options. This valuation methodology was adopted as a result of the Merger to align valuation methodologies with DuPont and better align with industry practice. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2018 | |
Investments, All Other Investments [Abstract] | |
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 21 of the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. If applicable, updates have been included in the respective section below. The following table summarizes the fair value of financial instruments at September 30, 2018 and December 31, 2017 : Fair Value of Financial Instruments Sep 30, 2018 Dec 31, 2017 In millions Cost Gain Loss Fair Value Cost Gain Loss Fair Value Cash equivalents 1 $ 778 $ — $ — $ 778 $ 2,280 $ — $ — $ 2,280 Marketable securities $ 105 $ 1 $ — $ 106 $ 4 $ — $ — $ 4 Other investments: Debt securities: Government debt 2 $ 704 $ 8 $ (24 ) $ 688 $ 637 $ 13 $ (11 ) $ 639 Corporate bonds 1,008 30 (27 ) 1,011 704 32 (3 ) 733 Total debt securities $ 1,712 $ 38 $ (51 ) $ 1,699 $ 1,341 $ 45 $ (14 ) $ 1,372 Equity securities 3 $ 156 $ 22 $ (13 ) $ 165 $ 164 $ 2 $ (26 ) $ 140 Total other investments $ 1,868 $ 60 $ (64 ) $ 1,864 $ 1,505 $ 47 $ (40 ) $ 1,512 Total cash equivalents, marketable securities and other investments $ 2,751 $ 61 $ (64 ) $ 2,748 $ 3,789 $ 47 $ (40 ) $ 3,796 Long-term debt including debt due within one year 4 $ (19,690 ) $ 167 $ (1,252 ) $ (20,775 ) $ (20,517 ) $ 6 $ (2,104 ) $ (22,615 ) Derivatives relating to: Interest rates $ — $ 41 $ (2 ) $ 39 $ — $ — $ (4 ) $ (4 ) Foreign currency — 191 (32 ) 159 — 22 (112 ) (90 ) Commodities 5 — 275 (193 ) 82 — 130 (256 ) (126 ) Total derivatives $ — $ 507 $ (227 ) $ 280 $ — $ 152 $ (372 ) $ (220 ) 1. Prior period amounts were updated to conform with the current year presentation. 2. U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. 3. Equity securities with a readily determinable fair value. Presented in accordance with ASU 2016-01. See Notes 1 and 2 for additional information. 4. Cost includes fair value hedge adjustments of $18 million at September 30, 2018 and $19 million at December 31, 2017 on $2,990 million of debt. 5. Presented net of cash collateral. Debt Securities The Company's investments in debt securities are primarily classified as available-for-sale. The following table provides the investing results from available-for-sale securities for the nine months ended September 30, 2018 and 2017 : Investing Results 1 Nine Months Ended In millions Sep 30, Sep 30, Proceeds from sales of available-for-sale securities $ 880 $ 181 Gross realized gains $ 19 $ 4 Gross realized losses $ (26 ) $ — 1. Prior year amounts were updated to conform with the current year presentation as a result of the adoption of ASU 2016-01. Equity Securities The Company’s investments in equity securities with a readily determinable fair value totaled $165 million at September 30, 2018 ( $140 million at December 31, 2017 ). The net unrealized gain recognized in earnings on equity securities totaled $2 million for the three months ended September 30, 2018 and an unrealized gain of $10 million for the nine months ended September 30, 2018 . The aggregate carrying value of the Company’s investments in equity securities where fair value is not readily determinable totaled $57 million at September 30, 2018 , reflecting the cost of the investments. There were no adjustments to the cost basis of these investments for impairment or observable price changes for the three and nine months ended September 30, 2018 . Derivatives Interest Rate Risk Management The main objective of interest rate risk management is to reduce the total funding cost to the Company and to alter the interest rate exposure to the desired risk profile. To achieve this objective, the Company hedges using interest rate swaps, “swaptions” and exchange-traded instruments. The Company had $2,437 million notional United States dollar equivalent open interest rate derivatives designated as cash flow hedges at September 30, 2018 , with a net gain included in AOCL of $30 million after tax (net loss of $3 million after tax at December 31, 2017 ). These contracts have maturity dates that extend to 2022 . In the third quarter of 2018 , the Company terminated certain interest rate contracts and realized a net gain in AOCL of $33 million after tax. The following tables provide the fair value and balance sheet classification of derivative instruments at September 30, 2018 and December 31, 2017 : Fair Value of Derivative Instruments Sep 30, 2018 In millions Balance Sheet Classification Gross Counterparty and Cash Collateral Netting 1 Net Amounts Included in the Consolidated Balance Sheet Asset derivatives: Derivatives designated as hedging instruments: Interest rate swaps Deferred charges and other assets $ 43 $ (2 ) $ 41 Foreign currency contracts Other current assets 168 (38 ) 130 Commodity contracts Other current assets 116 (8 ) 108 Commodity contracts Deferred charges and other assets 150 (2 ) 148 Total $ 477 $ (50 ) $ 427 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets $ 137 $ (76 ) $ 61 Commodity contracts Other current assets 10 (1 ) 9 Commodity contracts Deferred charges and other assets 11 (1 ) 10 Total $ 158 $ (78 ) $ 80 Total asset derivatives $ 635 $ (128 ) $ 507 Liability derivatives: Derivatives designated as hedging instruments: Interest rate swaps Other noncurrent obligations $ 4 $ (2 ) $ 2 Foreign currency contracts Accrued and other current liabilities 43 (38 ) 5 Commodity contracts Accrued and other current liabilities 98 (8 ) 90 Commodity contracts Other noncurrent obligations 91 (7 ) 84 Total $ 236 $ (55 ) $ 181 Derivatives not designated as hedging instruments: Foreign currency contracts Accrued and other current liabilities $ 103 $ (76 ) $ 27 Commodity contracts Accrued and other current liabilities 8 (1 ) 7 Commodity contracts Other noncurrent obligations 13 (1 ) 12 Total $ 124 $ (78 ) $ 46 Total liability derivatives $ 360 $ (133 ) $ 227 1. Counterparty and cash collateral amounts represent the estimated net settlement amount when applying netting and set-off rights included in master netting arrangements between Dow and its counterparties and the payable or receivable for cash collateral held or placed with the same counterparty. Fair Value of Derivative Instruments Dec 31, 2017 In millions Balance Sheet Classification Gross Counterparty and Cash Collateral Netting 1 Net Amounts Included in the Consolidated Balance Sheet Asset derivatives: Derivatives designated as hedging instruments: Foreign currency contracts Other current assets $ 51 $ (46 ) $ 5 Commodity contracts Other current assets 20 (4 ) 16 Commodity contracts Deferred charges and other assets 70 (5 ) 65 Total $ 141 $ (55 ) $ 86 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets $ 75 $ (58 ) $ 17 Commodity contracts Other current assets 50 (5 ) 45 Commodity contracts Deferred charges and other assets 7 (3 ) 4 Total $ 132 $ (66 ) $ 66 Total asset derivatives $ 273 $ (121 ) $ 152 Liability derivatives: Derivatives designated as hedging instruments: Interest rate swaps Other noncurrent obligations $ 4 $ — $ 4 Foreign currency contracts Accrued and other current liabilities 109 (46 ) 63 Commodity contracts Accrued and other current liabilities 96 (15 ) 81 Commodity contracts Other noncurrent obligations 143 (12 ) 131 Total $ 352 $ (73 ) $ 279 Derivatives not designated as hedging instruments: Foreign currency contracts Accrued and other current liabilities $ 107 $ (58 ) $ 49 Commodity contracts Accrued and other current liabilities 45 (6 ) 39 Commodity contracts Other noncurrent obligations 8 (3 ) 5 Total $ 160 $ (67 ) $ 93 Total liability derivatives $ 512 $ (140 ) $ 372 1. Counterparty and cash collateral amounts represent the estimated net settlement amount when applying netting and set-off rights included in master netting arrangements between Dow and its counterparties and the payable or receivable for cash collateral held or placed with the same counterparty. Assets and liabilities related to forward contracts, interest rate swaps, currency swaps, options and other conditional or exchange contracts executed with the same counterparty under a master netting arrangement are netted. Collateral accounts are netted with corresponding liabilities. The Company posted cash collateral of $5 million at September 30, 2018 ( $21 million at December 31, 2017 ). Counterparties posted cash collateral of $3 million with the Company at September 30, 2018 ( zero at December 31, 2017 ). Income Statement Effect of Derivative Instruments Foreign currency derivatives not designated as hedges are used to offset foreign exchange gains or losses resulting from the underlying exposures of foreign currency denominated assets and liabilities. The amount charged on a pretax basis related to foreign currency derivatives not designated as a hedge, which was included in “Sundry income (expense) - net” in the consolidated statements of income, was a gain of $26 million for the three months ended September 30, 2018 ( $117 million loss for the three months ended September 30, 2017 ) and a gain of $91 million for the nine months ended September 30, 2018 ( $277 million loss for the nine months ended September 30, 2017 ). The income statement effects of other derivatives were immaterial. Reclassification from AOCL The net after-tax amounts to be reclassified from AOCL to income within the next 12 months are a $1 million loss for interest rate contracts, a $27 million gain for commodity contracts and a $9 million gain for foreign currency contracts. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2018 | |
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 22 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 . If applicable, updates have been included in the respective section below. Fair Value Measurements on a Recurring Basis The following tables summarize the bases used to measure certain assets and liabilities at fair value on a recurring basis: Basis of Fair Value Measurements on a Recurring Basis at Sep 30, 2018 In millions Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets at fair value: Cash equivalents 1 $ — $ 778 $ — $ 778 Marketable securities — 106 — 106 Equity securities 2 21 144 — 165 Debt securities: 2 Government debt 3 — 688 — 688 Corporate bonds — 1,011 — 1,011 Derivatives relating to: 4 Interest rates — 43 — 43 Foreign currency — 305 — 305 Commodities 75 212 — 287 Total assets at fair value $ 96 $ 3,287 $ — $ 3,383 Liabilities at fair value: Long-term debt including debt due within one year 5 $ — $ 20,775 $ — $ 20,775 Derivatives relating to: 4 Interest rates — 4 — 4 Foreign currency — 146 — 146 Commodities 30 180 — 210 Total liabilities at fair value $ 30 $ 21,105 $ — $ 21,135 1. Treasury bills, time deposits, and money market funds included in "Cash and cash equivalents" in the consolidated balance sheets and held at amortized cost, which approximates fair value. 2. The Company’s investments in debt securities, which are primarily available-for-sale, and equity securities are included in “Other investments” in the consolidated balance sheets. 3. U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. 4. See Note 17 for the classification of derivatives in the consolidated balance sheets. 5. See Note 17 for information on fair value measurements of long-term debt. Basis of Fair Value Measurements on a Recurring Basis at Dec 31, 2017 In millions Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets at fair value: Cash equivalents 1 $ — $ 2,280 $ — $ 2,280 Marketable securities — 4 — 4 Interests in trade accounts receivable conduits 2 — — 677 677 Equity securities 3 88 52 — 140 Debt securities: 3 Government debt 4 — 639 — 639 Corporate bonds — 733 — 733 Derivatives relating to: 5 Foreign currency — 126 — 126 Commodities 47 100 — 147 Total assets at fair value $ 135 $ 3,934 $ 677 $ 4,746 Liabilities at fair value: Long-term debt including debt due within one year 6 $ — $ 22,615 $ — $ 22,615 Derivatives relating to: 5 Interest rates — 4 — 4 Foreign currency — 216 — 216 Commodities 31 261 — 292 Total liabilities at fair value $ 31 $ 23,096 $ — $ 23,127 1. Treasury bills, time deposits, and money market funds included in "Cash and cash equivalents" in the consolidated balance sheets and held at amortized cost, which approximates fair value. 2. Included in "Accounts and notes receivable - Other" in the consolidated balance sheets. See Note 10 for additional information on transfers of financial assets. 3. The Company’s investments in debt securities, which are primarily available-for-sale, and equity securities are included in “Other investments” in the consolidated balance sheets. 4. U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. 5. See Note 17 for the classification of derivatives in the consolidated balance sheets. 6. See Note 17 for information on fair value measurements of long-term debt. The following table summarizes the changes in fair value measurements of interests held in trade receivable conduits using Level 3 inputs for the three and nine months ended September 30, 2018 and 2017 : Fair Value Measurements Using Level 3 Inputs for Interests Held in Trade Receivable Conduits 1 Three Months Ended Nine Months Ended Sep 30, Sep 30, Sep 30, Sep 30, In millions Balance at beginning of period $ 24 $ 1,684 $ 677 $ 1,237 Gain (loss) included in earnings 2 — (15 ) 3 (17 ) Purchases 3 — 2,327 — 7,608 Settlements 3, 4 (24 ) (2,157 ) (680 ) (6,989 ) Balance at end of period $ — $ 1,839 $ — $ 1,839 1. Included in “Accounts and notes receivable – Other” in the consolidated balance sheets. See Note 10 for additional information on transfers of financial assets. 2. Included in “Selling, general and administrative expenses” in the consolidated statements of income. 3. Presented in accordance with ASU 2016-15. See Notes 1 and 2 for additional information. In connection with the review and implementation of ASU 2016-15, the Company also changed the prior year value of “Purchases” and "Settlements" due to additional interpretive guidance of the required method for calculating the cash received from beneficial interests in the conduits, including additional guidance from the SEC's Office of the Chief Accountant issued in the third quarter of 2018 that indicated an entity must evaluate daily transaction activity to calculate the value of cash received from beneficial interests in conduits. 4. Includes noncash transactions of $23 million for the three and nine months ended September 30, 2018 . Fair Value Measurements on a Nonrecurring Basis As part of the Synergy Program, the Company has or will shut down a number of manufacturing, R&D and corporate facilities around the world. In the first nine months of 2018, manufacturing, R&D and other non-manufacturing facilities and the write-off of inventory associated with this plan were written down to zero. The impairment charges related to the Synergy Program, totaling $133 million , were included in "Restructuring and asset related charges - net" in the consolidated statements of income. See Note 5 for additional information on the Company's restructuring activities. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES A summary of the Company's variable interest entities ("VIEs") can be found in Note 23 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Assets and Liabilities of Consolidated VIEs The Company's consolidated financial statements include the assets, liabilities and results of operations of 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 "Noncontrolling interests" in the consolidated balance sheets. The following table summarizes the carrying amounts of these entities' assets and liabilities included in the Company’s consolidated balance sheets at September 30, 2018 and December 31, 2017 : Assets and Liabilities of Consolidated VIEs Sep 30, Dec 31, In millions Cash and cash equivalents $ 133 $ 107 Other current assets 136 131 Net property 769 907 Other noncurrent assets 44 50 Total assets 1 $ 1,082 $ 1,195 Current liabilities $ 278 $ 303 Long-term debt 148 249 Other noncurrent obligations 33 41 Total liabilities 2 $ 459 $ 593 1. All assets were restricted at September 30, 2018 and December 31, 2017 . 2. All liabilities were nonrecourse at September 30, 2018 and December 31, 2017 . In addition, the Company holds a variable interest in an entity created to monetize accounts receivable of select European entities. Dow is the primary beneficiary of this entity as a result of holding subordinated notes while maintaining servicing responsibilities for the accounts receivable. The carrying amounts of assets and liabilities included in the Company’s consolidated balance sheets pertaining to this entity were current assets of less than $1 million ( zero restricted) at September 30, 2018 ( $671 million , zero restricted, at December 31, 2017 ), and current liabilities of zero ( zero nonrecourse) at September 30, 2018 ( less than $1 million , zero nonrecourse, at December 31, 2017 ). Amounts presented in the consolidated balance sheets and the table above as restricted assets or nonrecourse obligations relating to consolidated VIEs at September 30, 2018 and December 31, 2017 , are adjusted for intercompany eliminations and parental guarantees. Nonconsolidated VIEs The following table summarizes the carrying amounts of assets and liabilities included in the consolidated balance sheets at September 30, 2018 and December 31, 2017 , related to variable interests in joint ventures or entities for which the Company is not the primary beneficiary. The Company's maximum exposure to loss is the same as the carrying amounts, unless otherwise noted below. Carrying Amounts of Assets and Liabilities Related to Nonconsolidated VIEs Sep 30, Dec 31, In millions Description of asset or liability Hemlock Semiconductor L.L.C. Equity method investment 1 $ (699 ) $ (752 ) Silicon joint ventures Equity method investments 2 $ 99 $ 103 AgroFresh Solutions, Inc. Equity method investment 2 $ 48 $ 51 Other receivable 3 $ — $ 4 1. Classified as "Other noncurrent obligations" in the consolidated balance sheets. The Company's maximum exposure to loss was zero at September 30, 2018 ( zero at December 31, 2017 ). 2. Classified as "Investment in nonconsolidated affiliates" in the consolidated balance sheets. 3. Classified as "Accounts and notes receivable - Other" in the consolidated balance sheets. |
RELATD PARTY TRANSACTIONS (Note
RELATD PARTY TRANSACTIONS (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | RELATED PARTY TRANSACTIONS Effective with the Merger, Dow reports transactions with DowDuPont and DuPont and its affiliates as related party transactions. DowDuPont The Company has committed to fund a portion of DowDuPont's share repurchases, dividends paid to common stockholders and certain governance expenses. Funding is accomplished through intercompany loans. On a quarterly basis, the Company's Board reviews and determines a dividend distribution to DowDuPont to settle the intercompany loans. The dividend distribution considers the level of the Company’s earnings and cash flows and the outstanding intercompany loan balances. In the third quarter of 2018 , the Company declared and paid dividends to DowDuPont of $1,048 million ( $3,158 million for the first nine months of 2018 ). At September 30, 2018 , the Company's outstanding intercompany loan balance was insignificant (insignificant at December 31, 2017 ). In addition, at September 30, 2018 , Dow had a receivable related to a tax sharing agreement with DowDuPont of $247 million ( $354 million at December 31, 2017 ), included in "Accounts and notes receivable - Other" in the consolidated balance sheets. DuPont and its Affiliates Dow sells to and procures from DuPont and its affiliates certain feedstocks, energy and raw materials that are consumed in each company's manufacturing process. The following table presents amounts due to or due from DuPont and its affiliates at September 30, 2018: Balances Due To or Due From DuPont and its Affiliates Sep 30, 2018 Dec 31, 2017 In millions Accounts and notes receivable - Other $ 117 $ 26 Accounts payable - Other $ 91 $ 12 The following table presents revenue earned and expenses incurred related to transactions with DuPont and its affiliates: Sales to DuPont and its Affiliates Three Months Ended Sep 30, 2018 Nine Months Ended Sep 30, 2018 In millions Net sales $ 73 $ 180 Cost of sales $ 51 $ 119 The Company also transferred certain feedstocks and energy to DuPont at cost which totaled $93 million and $259 million for the three and nine months ended September 30, 2018, respectively, and was reflected in "Cost of sales" in the consolidated statements of income. Purchases from DuPont and its affiliates were $73 million for the three months ended September 30, 2018 and $151 million for the nine months ended September 30, 2018. Transactions with DuPont and its affiliates for the three and nine months ended September 30, 2017, were not material to the consolidated financial statements. |
CONSOLIDATED FINANCIAL STATEM_2
CONSOLIDATED FINANCIAL STATEMENTS Change in Accounting Policy (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Change in Accounting Policy [Abstract] | |
Revenue Recognition, Policy [Policy Text Block] | Significant Accounting Policy Updates The Company's significant accounting policy for revenue was updated as a result of the adoption of Topic 606: Revenue The Company recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. To determine revenue recognition for the arrangements that the Company determines are within the scope of Topic 606, the Company performs the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. See Note 3 for additional information on revenue recognition. Revenue related to the Company's insurance operations includes third-party insurance premiums, which are earned over the terms of the related insurance policies and reinsurance contracts. |
Income Tax, Policy [Policy Text Block] | As a result of the adoption of ASU 2018-02, the Company's significant accounting policy for income taxes was updated to indicate the Company uses the portfolio approach for releasing income tax effects from accumulated other comprehensive loss. |
CONSOLIDATED FINANCIAL STATEM_3
CONSOLIDATED FINANCIAL STATEMENTS Consolidated Financial Statements (Policy) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Changes to Prior Period Consolidated Financial Statements In the first quarter of 2018, the Company adopted new accounting standards that required retrospective application. The Company updated the consolidated statements of income as a result of adopting Accounting Standards Update ("ASU") 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The consolidated statements of cash flows were updated as a result of adopting ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" and ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash." See Note 2 for additional information on the ASUs. In the third quarter of 2018, the SEC's Office of the Chief Accountant provided additional guidance related to ASU 2016-15 that indicated an entity must evaluate daily transaction activity to calculate the value of cash received from beneficial interests in conduits, resulting in additional updates to the consolidated statements of cash flows. Changes to the consolidated financial statements as a result of the retrospective application of the new accounting standards are summarized as follows: Summary of Changes to the Consolidated Statements of Income Three Months Ended Sep 30, 2017 Nine Months Ended Sep 30, 2017 In millions As Filed Updated 1 As Filed Updated 1 Cost of sales $ 10,666 $ 10,663 $ 31,626 $ 31,618 Research and development expenses $ 406 $ 408 $ 1,227 $ 1,235 Selling, general and administrative expenses $ 723 $ 724 $ 2,201 $ 2,203 Sundry income (expense) - net $ 144 $ 146 1. Reflects changes resulting from the adoption of ASU 2017-07. See Note 2 for additional information. Summary of Changes to the Consolidated Statements of Cash Flows Nine Months Ended Sep 30, 2017 In millions As Filed Updated 1 Operating Activities Proceeds from interests in trade accounts receivable conduits $ 939 $ — Accounts and notes receivable $ (2,241 ) $ (8,291 ) Other assets and liabilities, net $ 233 $ 231 Cash provided by (used for) operating activities $ 4,779 $ (2,212 ) Investing Activities Payment into escrow account $ (130 ) $ — Distribution from escrow account $ 130 $ — Acquisitions of property and businesses, net of cash acquired $ (31 ) $ — Proceeds from interests in trade accounts receivable conduits $ — $ 6,989 Cash provided by (used for) investing activities $ (1,806 ) $ 5,214 Financing Activities Contingent payment for acquisition of businesses $ — $ (31 ) Cash used for financing activities $ (1,509 ) $ (1,540 ) Summary Increase in cash, cash equivalents and restricted cash $ 1,787 $ 1,785 Cash, cash equivalents and restricted cash at beginning of period $ 6,607 $ 6,624 Cash, cash equivalents and restricted cash at end of period $ 8,394 $ 8,409 1. Reflects the adoption of ASU 2016-15 and ASU 2016-18. See Note 2 for additional information. In connection with the review and implementation of ASU 2016-15, the Company also changed the prior year value of “Proceeds from interests in trade accounts receivable conduits” due to additional interpretive guidance of the required method for calculating the cash received from beneficial interests in the conduits, including additional guidance from the SEC's Office of the Chief Accountant issued in the third quarter of 2018. Opening Balance Sheet Impact of Accounting Standards Adoption In the first quarter of 2018, the Company adopted ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)" and the associated ASUs (collectively, "Topic 606"), ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" and ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory." See Note 2 for additional information on these ASUs. The cumulative effect on the Company's January 1, 2018, consolidated balance sheet as a result of adopting these accounting standards is summarized in the following table: Summary of Impacts to the Consolidated Balance Sheet Dec 31, 2017 Adjustments due to: Jan 1, 2018 In millions As Filed Topic 606 ASU 2016-01 ASU 2016-16 Updated Assets Inventories $ 8,376 $ (11 ) $ — $ — $ 8,365 Other current assets $ 627 $ 29 $ — $ 31 $ 687 Total current assets $ 27,244 $ 18 $ — $ 31 $ 27,293 Deferred income tax assets $ 1,722 $ 25 $ — $ 10 $ 1,757 Deferred charges and other assets $ 829 $ 43 $ — $ — $ 872 Total other assets $ 22,038 $ 68 $ — $ 10 $ 22,116 Total Assets $ 79,940 $ 86 $ — $ 41 $ 80,067 Liabilities Accounts payable - Other $ 3,062 $ 10 $ — $ — $ 3,072 Income taxes payable $ 694 $ (2 ) $ — $ — $ 692 Accrued and other current liabilities $ 4,025 $ 50 $ — $ — $ 4,075 Total current liabilities $ 14,377 $ 58 $ — $ — $ 14,435 Other noncurrent obligations $ 5,994 $ 117 $ — $ — $ 6,111 Total other noncurrent liabilities $ 18,789 $ 117 $ — $ — $ 18,906 Stockholders' Equity Retained earnings $ 28,050 $ (89 ) $ (20 ) $ 41 $ 27,982 Accumulated other comprehensive loss $ (8,591 ) $ — $ 20 $ — $ (8,571 ) The Dow Chemical Company's stockholders' equity $ 25,823 $ (89 ) $ — $ 41 $ 25,775 Total equity $ 27,009 $ (89 ) $ — $ 41 $ 26,961 Total Liabilities and Equity $ 79,940 $ 86 $ — $ 41 $ 80,067 The most significant changes as a result of adopting Topic 606 relate to the Company's contract liabilities which include payments received in advance of performance. Contract liabilities, which are included in "Accrued and other current liabilities" and "Other noncurrent obligations" in the consolidated balance sheets, increased as certain performance obligations, which were previously recognized over time and related to the licensing of certain rights to patents and technology, as well as other performance obligations, are now recognized at a point in time as none of the three criteria for 'over time' recognition under Topic 606 are met. In the second quarter of 2018, the Company early adopted ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." This standard was adopted on April 1, 2018, and resulted in a $1,057 million increase to retained earnings due to the reclassification from accumulated other comprehensive loss. The reclassification was primarily related to the change in the federal corporate tax rate and the effect of the Tax Cuts and Jobs Act of 2017 ("The Act") on the Company's pension plans, derivative instruments, available-for-sale securities and cumulative translation adjustments. This reclassification is reflected in the "Adoption of accounting standards" line in the consolidated statements of equity. See Note 2 for additional information. Current Period Impact of Topic 606 The following table summarizes the effects of adopting Topic 606 on the Company's consolidated balance sheets, which was applied prospectively to contracts not completed at January 1, 2018. The effect of adopting Topic 606 did not have a material impact on the consolidated statements of income and the consolidated statements of cash flows. Summary of Impacts to the Consolidated Balance Sheets As Reported at Sep 30, 2018 Adjustments Balance at Sep 30, 2018 Excluding Adoption of Topic 606 In millions Assets Other current assets $ 911 $ (18 ) $ 893 Total current assets $ 26,960 $ (18 ) $ 26,942 Deferred income tax assets $ 1,716 $ (29 ) $ 1,687 Deferred charges and other assets $ 1,152 $ (43 ) $ 1,109 Total other assets $ 21,793 $ (72 ) $ 21,721 Total Assets $ 79,051 $ (90 ) $ 78,961 Liabilities Accounts payable - Other $ 3,652 $ (10 ) $ 3,642 Income taxes payable $ 613 $ 2 $ 615 Accrued and other current liabilities $ 3,497 $ (17 ) $ 3,480 Total current liabilities $ 16,826 $ (25 ) $ 16,801 Other noncurrent obligations $ 5,709 $ (134 ) $ 5,575 Total other noncurrent liabilities $ 16,802 $ (134 ) $ 16,668 Stockholders' Equity Retained earnings $ 29,489 $ 69 $ 29,558 The Dow Chemical Company's stockholders' equity $ 27,157 $ 69 $ 27,226 Total equity $ 28,338 $ 69 $ 28,407 Total Liabilities and Equity $ 79,051 $ (90 ) $ 78,961 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The Company disaggregates its revenue from contracts with customers by principal product group and geographic region, as the Company believes it best depicts the nature, amount, timing and uncertainty of its revenue and cash flows. See details in the tables below: Net Trade Revenue by Principal Product Group Three Months Ended Sep 30, 2018 Nine Months Ended In millions Coatings & Performance Monomers $ 1,051 $ 3,108 Consumer Solutions 1,446 4,325 Crop Protection 948 3,506 Electronics & Imaging 679 1,958 Hydrocarbons & Energy 1,961 5,573 Industrial Biosciences 126 393 Industrial Solutions 1 1,211 3,564 Nutrition & Health 145 458 Packaging and Specialty Plastics 3,795 11,535 Polyurethanes & CAV 1 2,608 7,852 Safety & Construction 531 1,498 Seed 100 740 Transportation & Advanced Polymers 297 927 Corporate 75 221 Other 3 10 Total $ 14,976 $ 45,668 1. Beginning in the third quarter of 2018, the Construction Chemicals principal product group was combined with Polyurethanes & CAV. Also, certain product lines associated with the oil and gas industry were realigned from the Industrial Solutions principal product group to Polyurethanes & CAV. These changes have been retrospectively reflected in the results presented. Net Trade Revenue by Geographic Region Three Months Ended Sep 30, 2018 Nine Months Ended In millions U.S. & Canada $ 5,296 $ 16,529 EMEA 1 4,440 13,944 Asia Pacific 3,508 10,439 Latin America 1,732 4,756 Total $ 14,976 $ 45,668 1. Europe, Middle East and Africa. |
Contract with Customer, Asset and Liability [Table Text Block] | The following table summarizes the contract balances at September 30, 2018 and December 31, 2017: Contract Balances Sep 30, 2018 Topic 606 Adjustments Jan 1, 2018 Dec 31, 2017 In millions Accounts and notes receivable - Trade $ 8,775 $ — $ 7,338 Contract assets - current 1 $ 36 $ 18 $ — Contract assets - noncurrent 2 $ 47 $ 43 $ — Contract liabilities - current 3 $ 165 $ 50 $ 117 Contract liabilities - noncurrent 4 $ 1,411 $ 117 $ 1,365 1. Included in "Other current assets" in the consolidated balance sheets. 2. Included in "Deferred charges and other assets" in the consolidated balance sheets. 3. Included in "Accrued and other current liabilities" in the consolidated balance sheets. 4. Included in "Other noncurrent obligations" in the consolidated balance sheets. |
Restructuring and Asset Relat_2
Restructuring and Asset Related Charges - Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
DowDuPont Cost Synergy Program [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the activities related to the Synergy Program. At September 30, 2018 , $267 million was included in "Accrued and other current liabilities" ( $231 million at December 31, 2017 ) and $61 million was included in "Other noncurrent obligations" ( $118 million at December 31, 2017 ) in the consolidated balance sheets. Synergy Program Severance and Related Benefit Costs Asset Write-downs and Write-offs Costs Associated with Exit and Disposal Activities Total In millions 2017 restructuring charges $ 357 $ 287 $ 43 $ 687 Charges against the reserve — (287 ) — (287 ) Cash payments (51 ) — — (51 ) Reserve balance at Dec 31, 2017 $ 306 $ — $ 43 $ 349 2018 restructuring charges 1 185 133 34 352 Charges against the reserve — (133 ) — (133 ) Cash payments (203 ) — (37 ) (240 ) Reserve balance at Sep 30, 2018 $ 288 $ — $ 40 $ 328 1. Included in "Restructuring and asset related charges - net" in the consolidated statements of income. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | The following table provides a breakdown of inventories: Inventories Sep 30, 2018 Dec 31, 2017 In millions Finished goods $ 5,877 $ 5,213 Work in process 2,386 1,747 Raw materials 1,053 898 Supplies 860 848 Total $ 10,176 $ 8,706 Adjustment of inventories to a LIFO basis (561 ) (330 ) Total inventories $ 9,615 $ 8,376 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table shows the carrying amount of goodwill: Goodwill In millions Net goodwill at Dec 31, 2017 $ 13,938 Foreign currency impact (67 ) Net goodwill at Sep 30, 2018 $ 13,871 |
Schedule of other intangible assets | The following table provides information regarding the Company’s other intangible assets: Other Intangible Assets Sep 30, 2018 Dec 31, 2017 In millions Gross Carrying Amount Accum Amort Net Gross Carrying Amount Accum Amort Net Intangible assets with finite lives: Developed technology $ 3,255 $ (1,869 ) $ 1,386 $ 3,263 $ (1,690 ) $ 1,573 Software 1,495 (853 ) 642 1,420 (780 ) 640 Trademarks/tradenames 679 (606 ) 73 697 (570 ) 127 Customer-related 4,913 (2,086 ) 2,827 5,035 (1,965 ) 3,070 Other 243 (167 ) 76 245 (156 ) 89 Total other intangible assets, finite lives $ 10,585 $ (5,581 ) $ 5,004 $ 10,660 $ (5,161 ) $ 5,499 In-process research and development 50 — 50 50 — 50 Total other intangible assets $ 10,635 $ (5,581 ) $ 5,054 $ 10,710 $ (5,161 ) $ 5,549 |
Schedule of amortization expense | The following table provides information regarding amortization expense related to other intangible assets: Amortization Expense Three Months Ended Nine Months Ended In millions Sep 30, 2018 Sep 30, 2017 Sep 30, 2018 Sep 30, 2017 Other intangible assets, excluding software $ 155 $ 155 $ 469 $ 467 Software, included in “Cost of sales” $ 25 $ 21 $ 73 $ 61 |
Schedule of estimated future amortization expense | Total estimated amortization expense for 2018 and the five succeeding fiscal years is as follows: Estimated Amortization Expense In millions 2018 $ 712 2019 $ 645 2020 $ 613 2021 $ 587 2022 $ 521 2023 $ 501 |
TRANSFERS OF FINANCIAL ASSETS (
TRANSFERS OF FINANCIAL ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Transfers and Servicing [Abstract] | |
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets [Table Text Block] | Interests Held Sep 30, Dec 31, In millions Carrying value of interests held $ — $ 677 Percentage of anticipated credit losses — % 2.64 % Impact to carrying value - 10% adverse change $ — $ — Impact to carrying value - 20% adverse change $ — $ 1 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Table Text Block] | Following is an analysis of certain cash flows between the Company and the conduits: Cash Proceeds Three Months Ended Nine Months Ended In millions Sep 30, Sep 30, Sep 30, Sep 30, Collections reinvested in revolving receivables $ — $ 6,295 $ — $ 18,027 Interests in conduits 1 $ 1 $ 2,157 $ 657 $ 6,989 1. Presented in "Investing Activities" in the consolidated statements of cash flows in accordance with ASU 2016-15. See Notes 1 and 2 for additional information. In connection with the review and implementation of ASU 2016-15, the Company also changed the prior year value of “Interests in conduits” due to additional interpretive guidance of the required method for calculating the cash received from beneficial interests in the conduits, including additional guidance from the SEC's Office of the Chief Accountant issued in the third quarter of 2018 that indicated an entity must evaluate daily transaction activity to calculate the value of cash received from beneficial interests in conduits. |
Schedule of Quantitative Information about Derecognized Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Table Text Block] | Following is additional information related to the sale of receivables under these facilities: Trade Accounts Receivable Sold Sep 30, Dec 31, In millions Delinquencies on sold receivables still outstanding $ — $ 82 Trade accounts receivable outstanding and derecognized $ — $ 612 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Table of Guarantees by Type | The following table provides a summary of the final expiration, maximum future payments and recorded liability reflected in the consolidated balance sheets for each type of guarantee: Guarantees Sep 30, 2018 Dec 31, 2017 In millions Final Expiration Maximum Future Payments Recorded Liability Final Expiration Maximum Future Payments Recorded Liability Guarantees 2023 $ 4,594 $ 35 2023 $ 4,774 $ 49 Residual value guarantees 2027 895 130 2027 889 135 Total guarantees $ 5,489 $ 165 $ 5,663 $ 184 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Components of Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table summarizes the changes and after-tax balances of each component of accumulated other comprehensive loss ("AOCL") for the nine months ended September 30, 2018 and 2017 : Accumulated Other Comprehensive Loss Unrealized Gains (Losses) on Investments Cumulative Translation Adj Pension and Other Postretire Benefits Derivative Instruments Total Accum Other Comp Loss In millions Balance at Jan 1, 2017 $ 43 $ (2,381 ) $ (7,389 ) $ (95 ) $ (9,822 ) Other comprehensive income (loss) before reclassifications 50 827 — (52 ) 825 Amounts reclassified from accumulated other comprehensive income (loss) (93 ) (8 ) 308 (5 ) 202 Net other comprehensive income (loss) $ (43 ) $ 819 $ 308 $ (57 ) $ 1,027 Balance at Sep 30, 2017 $ — $ (1,562 ) $ (7,081 ) $ (152 ) $ (8,795 ) Balance at Jan 1, 2018 1 $ 17 $ (1,481 ) $ (6,998 ) $ (109 ) $ (8,571 ) Other comprehensive income (loss) before reclassifications (36 ) (190 ) — 271 45 Amounts reclassified from accumulated other comprehensive income (loss) 5 (2 ) 373 61 437 Net other comprehensive income (loss) $ (31 ) $ (192 ) $ 373 $ 332 $ 482 Reclassification of stranded tax effects 2 $ (1 ) $ (107 ) $ (927 ) $ (22 ) $ (1,057 ) Balance at Sep 30, 2018 $ (15 ) $ (1,780 ) $ (7,552 ) $ 201 $ (9,146 ) 1. The beginning balance of "Unrealized gains (losses) on investments" was increased by $20 million to reflect the impact of the adoption of ASU 2016-01. See Notes 1 and 2 for additional information. 2. Amounts reclassified to retained earnings as a result of the adoption of ASU 2018-02. See Notes 1 and 2 for additional information. The tax effects on the net activity related to each component of other comprehensive income (loss) for the three and nine months ended September 30, 2018 and 2017 were as follows: Tax Benefit (Expense) 1 Three Months Ended Nine Months Ended In millions Sep 30, 2018 Sep 30, 2017 Sep 30, 2018 Sep 30, 2017 Unrealized gains (losses) on investments $ (2 ) $ 28 $ 7 $ 24 Cumulative translation adjustments (4 ) (23 ) (24 ) (49 ) Pension and other postretirement benefit plans (33 ) (48 ) (95 ) (143 ) Derivative instruments (49 ) (19 ) (58 ) 2 Tax expense from income taxes related to other comprehensive income (loss) items $ (88 ) $ (62 ) $ (170 ) $ (166 ) 1. Prior period amounts were updated to conform with the current year presentation. |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income | A summary of the reclassifications out of AOCL for the three and nine months ended September 30, 2018 and 2017 is provided as follows: Reclassifications Out of Accumulated Other Comprehensive Loss Three Months Ended Nine Months Ended Consolidated Statements of Income Classification Sep 30, 2018 Sep 30, 2017 Sep 30, 2018 Sep 30, 2017 In millions Unrealized (gains) losses on investments $ 4 $ (96 ) $ 7 $ (143 ) See (1) below Tax expense (benefit) (1 ) 33 (2 ) 50 See (2) below After tax $ 3 $ (63 ) $ 5 $ (93 ) Cumulative translation adjustments $ — $ (2 ) $ (2 ) $ (8 ) See (3) below Pension and other postretirement benefit plans $ 156 $ 153 $ 468 $ 451 See (4) below Tax benefit (33 ) (48 ) (95 ) (143 ) See (2) below After tax $ 123 $ 105 $ 373 $ 308 Derivative instruments $ 16 $ 14 $ 75 $ (1 ) See (5) below Tax benefit (4 ) (3 ) (14 ) (4 ) See (2) below After tax $ 12 $ 11 $ 61 $ (5 ) Total reclassifications for the period, after tax $ 138 $ 51 $ 437 $ 202 1. "Net sales" and "Sundry income (expense) - net." 2. "Provision for income taxes." 3. "Sundry income (expense) - net." 4. These AOCL components are included in the computation of net periodic benefit cost of the Company's defined benefit pension and other postretirement benefit plans. See Note 15 for additional information. 5. "Cost of sales," "Sundry income (expense) - net" and "Interest expense and amortization of debt discount." |
NONCONTROLLING INTERESTS Nonc_2
NONCONTROLLING INTERESTS Noncontrolling Interests (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests [Table Text Block] | The following table summarizes the activity for equity attributable to noncontrolling interests for the three and nine months ended September 30, 2018 and 2017 : Noncontrolling Interests Three Months Ended Nine Months Ended In millions Sep 30, 2018 Sep 30, 2017 Sep 30, 2018 Sep 30, 2017 Balance at beginning of period $ 1,152 $ 1,168 $ 1,186 $ 1,242 Net income attributable to noncontrolling interests 36 22 102 87 Distributions to noncontrolling interests 1 (2 ) (7 ) (63 ) (55 ) Deconsolidation of noncontrolling interests 2 — — — (119 ) Cumulative translation adjustments (5 ) 5 (45 ) 33 Other — 1 1 1 Balance at end of period $ 1,181 $ 1,189 $ 1,181 $ 1,189 1. Net of dividends paid to a joint venture, which were reclassified to "Equity in earnings of nonconsolidated affiliates" in the consolidated statements of income, totaled zero for the three months ended September 30, 2018 ( zero for the three months ended September 30, 2017 ) and $6 million for the nine months ended September 30, 2018 ( $3 million for the nine months ended September 30, 2017 ). 2. On June 30, 2017, the Company sold its ownership interest in SKC Haas Display Films group of companies. |
PENSION PLANS AND OTHER POSTR_2
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs [Table Text Block] | The following table provides the components of the Company's net periodic benefit cost for all significant plans: Net Periodic Benefit Cost for All Significant Plans Three Months Ended Nine Months Ended In millions Sep 30, Sep 30, Sep 30, Sep 30, Defined Benefit Pension Plans: Service cost $ 131 $ 127 $ 396 $ 378 Interest cost 216 221 651 660 Expected return on plan assets (401 ) (388 ) (1,211 ) (1,156 ) Amortization of prior service credit (6 ) (6 ) (18 ) (18 ) Amortization of net loss 168 161 509 476 Curtailment/settlement 1 — — — (6 ) Net periodic benefit cost $ 108 $ 115 $ 327 $ 334 Other Postretirement Benefits: Service cost $ 3 $ 3 $ 9 $ 9 Interest cost 11 14 33 41 Amortization of net gain (6 ) (2 ) (18 ) (5 ) Net periodic benefit cost $ 8 $ 15 $ 24 $ 45 1. The 2017 impact relates to the curtailment and settlement of a pension plan in Korea. |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, All Other Investments [Abstract] | |
Fair Value of Financial Instruments | The following table summarizes the fair value of financial instruments at September 30, 2018 and December 31, 2017 : Fair Value of Financial Instruments Sep 30, 2018 Dec 31, 2017 In millions Cost Gain Loss Fair Value Cost Gain Loss Fair Value Cash equivalents 1 $ 778 $ — $ — $ 778 $ 2,280 $ — $ — $ 2,280 Marketable securities $ 105 $ 1 $ — $ 106 $ 4 $ — $ — $ 4 Other investments: Debt securities: Government debt 2 $ 704 $ 8 $ (24 ) $ 688 $ 637 $ 13 $ (11 ) $ 639 Corporate bonds 1,008 30 (27 ) 1,011 704 32 (3 ) 733 Total debt securities $ 1,712 $ 38 $ (51 ) $ 1,699 $ 1,341 $ 45 $ (14 ) $ 1,372 Equity securities 3 $ 156 $ 22 $ (13 ) $ 165 $ 164 $ 2 $ (26 ) $ 140 Total other investments $ 1,868 $ 60 $ (64 ) $ 1,864 $ 1,505 $ 47 $ (40 ) $ 1,512 Total cash equivalents, marketable securities and other investments $ 2,751 $ 61 $ (64 ) $ 2,748 $ 3,789 $ 47 $ (40 ) $ 3,796 Long-term debt including debt due within one year 4 $ (19,690 ) $ 167 $ (1,252 ) $ (20,775 ) $ (20,517 ) $ 6 $ (2,104 ) $ (22,615 ) Derivatives relating to: Interest rates $ — $ 41 $ (2 ) $ 39 $ — $ — $ (4 ) $ (4 ) Foreign currency — 191 (32 ) 159 — 22 (112 ) (90 ) Commodities 5 — 275 (193 ) 82 — 130 (256 ) (126 ) Total derivatives $ — $ 507 $ (227 ) $ 280 $ — $ 152 $ (372 ) $ (220 ) 1. Prior period amounts were updated to conform with the current year presentation. 2. U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. 3. Equity securities with a readily determinable fair value. Presented in accordance with ASU 2016-01. See Notes 1 and 2 for additional information. 4. Cost includes fair value hedge adjustments of $18 million at September 30, 2018 and $19 million at December 31, 2017 on $2,990 million of debt. 5. Presented net of cash collateral |
Investing Results | The following table provides the investing results from available-for-sale securities for the nine months ended September 30, 2018 and 2017 : Investing Results 1 Nine Months Ended In millions Sep 30, Sep 30, Proceeds from sales of available-for-sale securities $ 880 $ 181 Gross realized gains $ 19 $ 4 Gross realized losses $ (26 ) $ — 1. Prior year amounts were updated to conform with the current year presentation as a result of the adoption of ASU 2016-01. |
Schedule Fair Values of Derivative Instruments | The following tables provide the fair value and balance sheet classification of derivative instruments at September 30, 2018 and December 31, 2017 : Fair Value of Derivative Instruments Sep 30, 2018 In millions Balance Sheet Classification Gross Counterparty and Cash Collateral Netting 1 Net Amounts Included in the Consolidated Balance Sheet Asset derivatives: Derivatives designated as hedging instruments: Interest rate swaps Deferred charges and other assets $ 43 $ (2 ) $ 41 Foreign currency contracts Other current assets 168 (38 ) 130 Commodity contracts Other current assets 116 (8 ) 108 Commodity contracts Deferred charges and other assets 150 (2 ) 148 Total $ 477 $ (50 ) $ 427 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets $ 137 $ (76 ) $ 61 Commodity contracts Other current assets 10 (1 ) 9 Commodity contracts Deferred charges and other assets 11 (1 ) 10 Total $ 158 $ (78 ) $ 80 Total asset derivatives $ 635 $ (128 ) $ 507 Liability derivatives: Derivatives designated as hedging instruments: Interest rate swaps Other noncurrent obligations $ 4 $ (2 ) $ 2 Foreign currency contracts Accrued and other current liabilities 43 (38 ) 5 Commodity contracts Accrued and other current liabilities 98 (8 ) 90 Commodity contracts Other noncurrent obligations 91 (7 ) 84 Total $ 236 $ (55 ) $ 181 Derivatives not designated as hedging instruments: Foreign currency contracts Accrued and other current liabilities $ 103 $ (76 ) $ 27 Commodity contracts Accrued and other current liabilities 8 (1 ) 7 Commodity contracts Other noncurrent obligations 13 (1 ) 12 Total $ 124 $ (78 ) $ 46 Total liability derivatives $ 360 $ (133 ) $ 227 1. Counterparty and cash collateral amounts represent the estimated net settlement amount when applying netting and set-off rights included in master netting arrangements between Dow and its counterparties and the payable or receivable for cash collateral held or placed with the same counterparty. Fair Value of Derivative Instruments Dec 31, 2017 In millions Balance Sheet Classification Gross Counterparty and Cash Collateral Netting 1 Net Amounts Included in the Consolidated Balance Sheet Asset derivatives: Derivatives designated as hedging instruments: Foreign currency contracts Other current assets $ 51 $ (46 ) $ 5 Commodity contracts Other current assets 20 (4 ) 16 Commodity contracts Deferred charges and other assets 70 (5 ) 65 Total $ 141 $ (55 ) $ 86 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets $ 75 $ (58 ) $ 17 Commodity contracts Other current assets 50 (5 ) 45 Commodity contracts Deferred charges and other assets 7 (3 ) 4 Total $ 132 $ (66 ) $ 66 Total asset derivatives $ 273 $ (121 ) $ 152 Liability derivatives: Derivatives designated as hedging instruments: Interest rate swaps Other noncurrent obligations $ 4 $ — $ 4 Foreign currency contracts Accrued and other current liabilities 109 (46 ) 63 Commodity contracts Accrued and other current liabilities 96 (15 ) 81 Commodity contracts Other noncurrent obligations 143 (12 ) 131 Total $ 352 $ (73 ) $ 279 Derivatives not designated as hedging instruments: Foreign currency contracts Accrued and other current liabilities $ 107 $ (58 ) $ 49 Commodity contracts Accrued and other current liabilities 45 (6 ) 39 Commodity contracts Other noncurrent obligations 8 (3 ) 5 Total $ 160 $ (67 ) $ 93 Total liability derivatives $ 512 $ (140 ) $ 372 1. Counterparty and cash collateral amounts represent the estimated net settlement amount when applying netting and set-off rights included in master netting arrangements between Dow and its counterparties and the payable or receivable for cash collateral held or placed with the same counterparty. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following tables summarize the bases used to measure certain assets and liabilities at fair value on a recurring basis: Basis of Fair Value Measurements on a Recurring Basis at Sep 30, 2018 In millions Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets at fair value: Cash equivalents 1 $ — $ 778 $ — $ 778 Marketable securities — 106 — 106 Equity securities 2 21 144 — 165 Debt securities: 2 Government debt 3 — 688 — 688 Corporate bonds — 1,011 — 1,011 Derivatives relating to: 4 Interest rates — 43 — 43 Foreign currency — 305 — 305 Commodities 75 212 — 287 Total assets at fair value $ 96 $ 3,287 $ — $ 3,383 Liabilities at fair value: Long-term debt including debt due within one year 5 $ — $ 20,775 $ — $ 20,775 Derivatives relating to: 4 Interest rates — 4 — 4 Foreign currency — 146 — 146 Commodities 30 180 — 210 Total liabilities at fair value $ 30 $ 21,105 $ — $ 21,135 1. Treasury bills, time deposits, and money market funds included in "Cash and cash equivalents" in the consolidated balance sheets and held at amortized cost, which approximates fair value. 2. The Company’s investments in debt securities, which are primarily available-for-sale, and equity securities are included in “Other investments” in the consolidated balance sheets. 3. U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. 4. See Note 17 for the classification of derivatives in the consolidated balance sheets. 5. See Note 17 for information on fair value measurements of long-term debt. Basis of Fair Value Measurements on a Recurring Basis at Dec 31, 2017 In millions Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets at fair value: Cash equivalents 1 $ — $ 2,280 $ — $ 2,280 Marketable securities — 4 — 4 Interests in trade accounts receivable conduits 2 — — 677 677 Equity securities 3 88 52 — 140 Debt securities: 3 Government debt 4 — 639 — 639 Corporate bonds — 733 — 733 Derivatives relating to: 5 Foreign currency — 126 — 126 Commodities 47 100 — 147 Total assets at fair value $ 135 $ 3,934 $ 677 $ 4,746 Liabilities at fair value: Long-term debt including debt due within one year 6 $ — $ 22,615 $ — $ 22,615 Derivatives relating to: 5 Interest rates — 4 — 4 Foreign currency — 216 — 216 Commodities 31 261 — 292 Total liabilities at fair value $ 31 $ 23,096 $ — $ 23,127 1. Treasury bills, time deposits, and money market funds included in "Cash and cash equivalents" in the consolidated balance sheets and held at amortized cost, which approximates fair value. 2. Included in "Accounts and notes receivable - Other" in the consolidated balance sheets. See Note 10 for additional information on transfers of financial assets. 3. The Company’s investments in debt securities, which are primarily available-for-sale, and equity securities are included in “Other investments” in the consolidated balance sheets. 4. U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations. 5. See Note 17 for the classification of derivatives in the consolidated balance sheets. 6. See Note 17 for information on fair value measurements of long-term debt. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following table summarizes the changes in fair value measurements of interests held in trade receivable conduits using Level 3 inputs for the three and nine months ended September 30, 2018 and 2017 : Fair Value Measurements Using Level 3 Inputs for Interests Held in Trade Receivable Conduits 1 Three Months Ended Nine Months Ended Sep 30, Sep 30, Sep 30, Sep 30, In millions Balance at beginning of period $ 24 $ 1,684 $ 677 $ 1,237 Gain (loss) included in earnings 2 — (15 ) 3 (17 ) Purchases 3 — 2,327 — 7,608 Settlements 3, 4 (24 ) (2,157 ) (680 ) (6,989 ) Balance at end of period $ — $ 1,839 $ — $ 1,839 1. Included in “Accounts and notes receivable – Other” in the consolidated balance sheets. See Note 10 for additional information on transfers of financial assets. 2. Included in “Selling, general and administrative expenses” in the consolidated statements of income. 3. Presented in accordance with ASU 2016-15. See Notes 1 and 2 for additional information. In connection with the review and implementation of ASU 2016-15, the Company also changed the prior year value of “Purchases” and "Settlements" due to additional interpretive guidance of the required method for calculating the cash received from beneficial interests in the conduits, including additional guidance from the SEC's Office of the Chief Accountant issued in the third quarter of 2018 that indicated an entity must evaluate daily transaction activity to calculate the value of cash received from beneficial interests in conduits. 4. Includes noncash transactions of $23 million for the three and nine months ended September 30, 2018 . |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure [Member] | |
Schedule of Variable Interest Entities [Table Text Block] | The following table summarizes the carrying amounts of these entities' assets and liabilities included in the Company’s consolidated balance sheets at September 30, 2018 and December 31, 2017 : Assets and Liabilities of Consolidated VIEs Sep 30, Dec 31, In millions Cash and cash equivalents $ 133 $ 107 Other current assets 136 131 Net property 769 907 Other noncurrent assets 44 50 Total assets 1 $ 1,082 $ 1,195 Current liabilities $ 278 $ 303 Long-term debt 148 249 Other noncurrent obligations 33 41 Total liabilities 2 $ 459 $ 593 1. All assets were restricted at September 30, 2018 and December 31, 2017 . 2. All liabilities were nonrecourse at September 30, 2018 and December 31, 2017 . |
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member] | |
Schedule of Variable Interest Entities [Table Text Block] | The Company's maximum exposure to loss is the same as the carrying amounts, unless otherwise noted below. Carrying Amounts of Assets and Liabilities Related to Nonconsolidated VIEs Sep 30, Dec 31, In millions Description of asset or liability Hemlock Semiconductor L.L.C. Equity method investment 1 $ (699 ) $ (752 ) Silicon joint ventures Equity method investments 2 $ 99 $ 103 AgroFresh Solutions, Inc. Equity method investment 2 $ 48 $ 51 Other receivable 3 $ — $ 4 1. Classified as "Other noncurrent obligations" in the consolidated balance sheets. The Company's maximum exposure to loss was zero at September 30, 2018 ( zero at December 31, 2017 ). 2. Classified as "Investment in nonconsolidated affiliates" in the consolidated balance sheets. 3. Classified as "Accounts and notes receivable - Other" in the consolidated balance sheets. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | The following table presents amounts due to or due from DuPont and its affiliates at September 30, 2018: Balances Due To or Due From DuPont and its Affiliates Sep 30, 2018 Dec 31, 2017 In millions Accounts and notes receivable - Other $ 117 $ 26 Accounts payable - Other $ 91 $ 12 The following table presents revenue earned and expenses incurred related to transactions with DuPont and its affiliates: Sales to DuPont and its Affiliates Three Months Ended Sep 30, 2018 Nine Months Ended Sep 30, 2018 In millions Net sales $ 73 $ 180 Cost of sales $ 51 $ 119 |
CONSOLIDATED FINANCIAL STATEM_4
CONSOLIDATED FINANCIAL STATEMENTS Changes to Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Cost of sales | $ 11,933 | $ 10,663 | $ 35,885 | $ 31,618 |
Research and development expenses | 373 | 408 | 1,166 | 1,235 |
Selling, general and administrative expenses | 672 | 724 | 2,171 | 2,203 |
Sundry income (expense) - net | $ 11 | 268 | $ 99 | 146 |
Previously Reported [Member] | ||||
Cost of sales | 10,666 | 31,626 | ||
Research and development expenses | 406 | 1,227 | ||
Selling, general and administrative expenses | $ 723 | 2,201 | ||
Sundry income (expense) - net | $ 144 |
CONSOLIDATED FINANCIAL STATEM_5
CONSOLIDATED FINANCIAL STATEMENTS Changes to Cash Flow Statement (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Proceeds from interests in trade accounts receivable conduits | $ (657) | $ (6,989) | ||
Accounts and notes receivable | (1,853) | (8,291) | ||
Other assets and liabilities, net | 1,075 | (231) | ||
Cash provided by (used for) operating activities | 2,197 | (2,212) | ||
Acquisitions of property, businesses and consolidated companies, net of cash acquired | 20 | 0 | ||
Proceeds from interests in trade accounts receivable conduits | 6,989 | |||
Cash provided by (used for) investing activities | (1,266) | 5,214 | ||
Contingent payment for acquisition of businesses | 0 | (31) | ||
Cash used for financing activities | (3,645) | (1,540) | ||
Decrease in cash, cash equivalents and restricted cash | (2,773) | 1,785 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 3,434 | 8,409 | $ 6,207 | $ 6,624 |
Previously Reported [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Proceeds from interests in trade accounts receivable conduits | 939 | |||
Accounts and notes receivable | (2,241) | |||
Other assets and liabilities, net | 233 | |||
Cash provided by (used for) operating activities | 4,779 | |||
Payment into escrow account | (130) | |||
Payment from escrow account | (130) | |||
Acquisitions of property, businesses and consolidated companies, net of cash acquired | 31 | |||
Proceeds from interests in trade accounts receivable conduits | 0 | |||
Cash provided by (used for) investing activities | (1,806) | |||
Contingent payment for acquisition of businesses | 0 | |||
Cash used for financing activities | (1,509) | |||
Decrease in cash, cash equivalents and restricted cash | 1,787 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 8,394 | $ 6,607 |
CONSOLIDATED FINANCIAL STATEM_6
CONSOLIDATED FINANCIAL STATEMENTS Changes to Balance Sheet (Details) - USD ($) $ in Millions | Apr. 01, 2018 | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Inventories | $ 9,615 | $ 8,365 | $ 8,376 | |||
Other current assets | 911 | 687 | 627 | |||
Total current assets | 26,960 | 27,293 | 27,244 | |||
Deferred income tax assets | 1,716 | 1,757 | 1,722 | |||
Deferred charges and other assets | 1,152 | 872 | 829 | |||
Total other assets | 21,793 | 22,116 | 22,038 | |||
Total assets | 79,051 | 80,067 | 79,940 | |||
Accounts payable - Other | 3,652 | 3,072 | 3,062 | |||
Income taxes payable | 613 | 692 | 694 | |||
Accrued and other current liabilities | 3,497 | 4,075 | 4,025 | |||
Total current liabilities | 16,826 | 14,435 | 14,377 | |||
Other noncurrent obligations | 5,709 | 6,111 | 5,994 | |||
Total other noncurrent liabilities | 16,802 | 18,906 | 18,789 | |||
Retained earnings | 29,489 | 27,982 | 28,050 | |||
Accumulated other comprehensive loss | (9,146) | (8,571) | (8,591) | |||
The Dow Chemical Company's stockholders' equity | 27,157 | 25,775 | 25,823 | |||
Total equity | 28,338 | 26,961 | 27,009 | $ 30,271 | $ 27,229 | |
Total Liabilities and Equity | 79,051 | 80,067 | $ 79,940 | |||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | $ 1,057 | |||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Inventories | (11) | |||||
Other current assets | (18) | 29 | ||||
Total current assets | (18) | 18 | ||||
Deferred income tax assets | (29) | 25 | ||||
Deferred charges and other assets | (43) | 43 | ||||
Total other assets | (72) | 68 | ||||
Total assets | (90) | 86 | ||||
Accounts payable - Other | (10) | 10 | ||||
Income taxes payable | 2 | (2) | ||||
Accrued and other current liabilities | (17) | 50 | ||||
Total current liabilities | (25) | 58 | ||||
Other noncurrent obligations | (134) | 117 | ||||
Total other noncurrent liabilities | (134) | 117 | ||||
Retained earnings | 69 | (89) | ||||
Accumulated other comprehensive loss | 0 | |||||
The Dow Chemical Company's stockholders' equity | 69 | (89) | ||||
Total equity | 69 | (89) | ||||
Total Liabilities and Equity | $ (90) | 86 | ||||
Accounting Standards Update 2016-01 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Inventories | 0 | |||||
Other current assets | 0 | |||||
Total current assets | 0 | |||||
Deferred income tax assets | 0 | |||||
Deferred charges and other assets | 0 | |||||
Total other assets | 0 | |||||
Total assets | 0 | |||||
Accounts payable - Other | 0 | |||||
Income taxes payable | 0 | |||||
Accrued and other current liabilities | 0 | |||||
Total current liabilities | 0 | |||||
Other noncurrent obligations | 0 | |||||
Total other noncurrent liabilities | 0 | |||||
Retained earnings | (20) | |||||
Accumulated other comprehensive loss | 20 | |||||
The Dow Chemical Company's stockholders' equity | 0 | |||||
Total equity | 0 | |||||
Total Liabilities and Equity | 0 | |||||
Accounting Standards Update 2016-16 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Inventories | 0 | |||||
Other current assets | 31 | |||||
Total current assets | 31 | |||||
Deferred income tax assets | 10 | |||||
Deferred charges and other assets | 0 | |||||
Total other assets | 10 | |||||
Total assets | 41 | |||||
Accounts payable - Other | 0 | |||||
Income taxes payable | 0 | |||||
Accrued and other current liabilities | 0 | |||||
Total current liabilities | 0 | |||||
Other noncurrent obligations | 0 | |||||
Total other noncurrent liabilities | 0 | |||||
Retained earnings | 41 | |||||
Accumulated other comprehensive loss | 0 | |||||
The Dow Chemical Company's stockholders' equity | 41 | |||||
Total equity | 41 | |||||
Total Liabilities and Equity | $ 41 |
CONSOLIDATED FINANCIAL STATEM_7
CONSOLIDATED FINANCIAL STATEMENTS Impact of New Revenue Standard (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other current assets | $ 911 | $ 687 | $ 627 | ||
Total current assets | 26,960 | 27,293 | 27,244 | ||
Deferred income tax assets | 1,716 | 1,757 | 1,722 | ||
Deferred charges and other assets | 1,152 | 872 | 829 | ||
Total other assets | 21,793 | 22,116 | 22,038 | ||
Total assets | 79,051 | 80,067 | 79,940 | ||
Accounts payable - Other | 3,652 | 3,072 | 3,062 | ||
Income taxes payable | 613 | 692 | 694 | ||
Accrued and other current liabilities | 3,497 | 4,075 | 4,025 | ||
Total current liabilities | 16,826 | 14,435 | 14,377 | ||
Other noncurrent obligations | 5,709 | 6,111 | 5,994 | ||
Total other noncurrent liabilities | 16,802 | 18,906 | 18,789 | ||
Retained earnings | 29,489 | 27,982 | 28,050 | ||
The Dow Chemical Company's stockholders' equity | 27,157 | 25,775 | 25,823 | ||
Total equity | 28,338 | 26,961 | 27,009 | $ 30,271 | $ 27,229 |
Liabilities and Equity | 79,051 | 80,067 | $ 79,940 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other current assets | (18) | 29 | |||
Total current assets | (18) | 18 | |||
Deferred income tax assets | (29) | 25 | |||
Deferred charges and other assets | (43) | 43 | |||
Total other assets | (72) | 68 | |||
Total assets | (90) | 86 | |||
Accounts payable - Other | (10) | 10 | |||
Income taxes payable | 2 | (2) | |||
Accrued and other current liabilities | (17) | 50 | |||
Total current liabilities | (25) | 58 | |||
Other noncurrent obligations | (134) | 117 | |||
Total other noncurrent liabilities | (134) | 117 | |||
Retained earnings | 69 | (89) | |||
The Dow Chemical Company's stockholders' equity | 69 | (89) | |||
Total equity | 69 | (89) | |||
Liabilities and Equity | (90) | $ 86 | |||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other current assets | 893 | ||||
Total current assets | 26,942 | ||||
Deferred income tax assets | 1,687 | ||||
Deferred charges and other assets | 1,109 | ||||
Total other assets | 21,721 | ||||
Total assets | 78,961 | ||||
Accounts payable - Other | 3,642 | ||||
Income taxes payable | 615 | ||||
Accrued and other current liabilities | 3,480 | ||||
Total current liabilities | 16,801 | ||||
Other noncurrent obligations | 5,575 | ||||
Total other noncurrent liabilities | 16,668 | ||||
Retained earnings | 29,558 | ||||
The Dow Chemical Company's stockholders' equity | 27,226 | ||||
Total equity | 28,407 | ||||
Liabilities and Equity | $ 78,961 |
CONSOLIDATED FINANCIAL STATEM_8
CONSOLIDATED FINANCIAL STATEMENTS Other (Details) - $ / shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Common Stock, Dividends, Per Share, Declared | $ 0.46 | $ 1.38 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue, Performance Obligation, Description of Timing | 22 | |||||
Revenues | $ 14,976 | $ 13,633 | $ 45,668 | $ 40,697 | ||
Contract with Customer, Liability, Revenue Recognized | 190 | |||||
Accounts Receivable, Net, Current | 8,775 | 8,775 | $ 7,338 | |||
Contract assets - current 1 | 36 | 36 | 0 | |||
Contract assets - noncurrent 2 | 47 | 47 | 0 | |||
Contract liabilities - current 3 | 165 | 165 | 117 | |||
Contract liabilities - noncurrent 4 | 1,411 | 1,411 | $ 1,365 | |||
U.S. & Canada | ||||||
Revenues | 5,296 | 16,529 | ||||
EMEA 1 | ||||||
Revenues | 4,440 | 13,944 | ||||
Asia Pacific | ||||||
Revenues | 3,508 | 10,439 | ||||
Latin America | ||||||
Revenues | 1,732 | 4,756 | ||||
Coatings & Performance Monomers | ||||||
Revenues | 1,051 | 3,108 | ||||
Consumer Solutions | ||||||
Revenues | 1,446 | 4,325 | ||||
Crop Protection | ||||||
Revenues | 948 | 3,506 | ||||
Electronics & Imaging | ||||||
Revenues | 679 | 1,958 | ||||
Hydrocarbons & Energy | ||||||
Revenues | 1,961 | 5,573 | ||||
Industrial Biosciences | ||||||
Revenues | 126 | 393 | ||||
Industrial Solutions | ||||||
Revenues | 1,211 | 3,564 | ||||
Nutrition & Health | ||||||
Revenues | 145 | 458 | ||||
Packaging and Specialty Plastics | ||||||
Revenues | 3,795 | 11,535 | ||||
Polyurethanes & CAV | ||||||
Revenues | 2,608 | 7,852 | ||||
Safety & Construction | ||||||
Revenues | 531 | 1,498 | ||||
Seed | ||||||
Revenues | 100 | 740 | ||||
Transportation & Advanced Polymers | ||||||
Revenues | 297 | 927 | ||||
Corporate | ||||||
Revenues | 75 | 221 | ||||
Other | ||||||
Revenues | $ 3 | $ 10 | ||||
Product [Member] | ||||||
Revenue, Percentage from Products and Service Transferred to Customers | 99.00% | 98.00% | 99.00% | 98.00% | ||
Material Rights Granted to Customers [Member] | ||||||
Revenue, Remaining Performance Obligation, Amount | $ 103 | $ 103 | ||||
Licensing of Technology [Member] [Member] | ||||||
Revenue, Remaining Performance Obligation, Amount | $ 227 | $ 227 | ||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||||
Accounts Receivable, Net, Current | $ 0 | |||||
Contract assets - current 1 | 18 | |||||
Contract assets - noncurrent 2 | 43 | |||||
Contract liabilities - current 3 | 50 | |||||
Contract liabilities - noncurrent 4 | $ 117 |
DIVESTITURES DIVESTITURES (Deta
DIVESTITURES DIVESTITURES (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2017 | Nov. 30, 2017 | Sep. 01, 2017 | |
Global Ethylene Acrylic Acid (EAA) [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Group, Including Discontinued Operation, Consideration | $ 296 | ||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 227 | ||
Dow Agrosciences Brazil Corn Seed [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Group, Including Discontinued Operation, Consideration | $ 1,100 |
2017 DWDP Cost Synergy Program
2017 DWDP Cost Synergy Program (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | 13 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Sep. 30, 2018 | Nov. 01, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring, Settlement and Impairment Provisions | $ 108 | $ 139 | $ 371 | $ 126 | |||
DowDuPont Cost Synergy Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | $ 1,300 | ||||||
Restructuring, Settlement and Impairment Provisions | 101 | 352 | $ 687 | $ 1,039 | |||
Restructuring Reserve, Settled without Cash | (133) | (287) | |||||
Payments for Restructuring | (240) | (51) | |||||
Restructuring Reserve | 328 | 328 | 349 | 328 | |||
Employee Severance [Member] | DowDuPont Cost Synergy Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring, Settlement and Impairment Provisions | 43 | $ 139 | 185 | 357 | 542 | ||
Restructuring Reserve, Settled without Cash | 0 | 0 | |||||
Payments for Restructuring | (203) | (51) | |||||
Restructuring Reserve | 288 | 288 | 306 | 288 | |||
Asset write-downs and write-offs [Member] | DowDuPont Cost Synergy Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring, Settlement and Impairment Provisions | 58 | 133 | 287 | 420 | |||
Restructuring Reserve, Settled without Cash | (133) | (287) | |||||
Payments for Restructuring | 0 | 0 | |||||
Restructuring Reserve | 0 | 0 | 0 | 0 | |||
Costs Associated with Exit and Disposal Activities [Member] | DowDuPont Cost Synergy Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring, Settlement and Impairment Provisions | 34 | 43 | 77 | ||||
Restructuring Reserve, Settled without Cash | 0 | 0 | |||||
Payments for Restructuring | (37) | 0 | |||||
Restructuring Reserve | 40 | 40 | 43 | 40 | |||
Minimum [Member] | Employee Severance [Member] | DowDuPont Cost Synergy Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | 525 | ||||||
Minimum [Member] | Asset write-downs and write-offs [Member] | DowDuPont Cost Synergy Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | 400 | ||||||
Minimum [Member] | Costs Associated with Exit and Disposal Activities [Member] | DowDuPont Cost Synergy Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | 290 | ||||||
Maximum [Member] | Employee Severance [Member] | DowDuPont Cost Synergy Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | 575 | ||||||
Maximum [Member] | Asset write-downs and write-offs [Member] | DowDuPont Cost Synergy Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | 440 | ||||||
Maximum [Member] | Costs Associated with Exit and Disposal Activities [Member] | DowDuPont Cost Synergy Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | $ 310 | ||||||
Accrued and Other Current Liabilities [Member] | DowDuPont Cost Synergy Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Reserve | 267 | 267 | 231 | 267 | |||
Other Noncurrent Liabilities [Member] | DowDuPont Cost Synergy Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Reserve | $ 61 | $ 61 | $ 118 | $ 61 |
Summary of Sundry Income (Expen
Summary of Sundry Income (Expense) - Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Sundry income (expense) - net | $ 11 | $ 268 | $ 99 | $ 146 |
Nova Patent Infringement [Member] | ||||
Gain (Loss) Related to Litigation Settlement | 137 | |||
Bayer CropScience v. Dow AgroSciences [Member] | ||||
Gain (Loss) Related to Litigation Settlement | $ (469) | |||
Global Ethylene Acrylic Acid (EAA) [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | ||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 227 |
Other (Details)
Other (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Accrued Liabilities, Current | $ 3,497 | $ 4,075 | $ 4,025 |
Employee-related Liabilities, Current | $ 915 | $ 1,109 |
INCOME TAXES Income Taxes (Deta
INCOME TAXES Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2018 | |
Operating Loss Carryforwards [Line Items] | ||||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Change in Tax Rate, Provisional Income Tax (Expense) Benefit | $ 28 | $ 59 | $ 9 | |
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense (Benefit) | $ 11 | 11 | $ 876 | |
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Indirect Impact on Inventory, Provisional Income Tax Expense | $ 38 | |||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 267 |
INVENTORIES (Schedule of Invent
INVENTORIES (Schedule of Inventories) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | |||
Finished goods | $ 5,877 | $ 5,213 | |
Work in process | 2,386 | 1,747 | |
Raw materials | 1,053 | 898 | |
Supplies | 860 | 848 | |
Total | 10,176 | 8,706 | |
Adjustment of inventories to a LIFO basis | (561) | (330) | |
Total inventories 1 | $ 9,615 | $ 8,365 | $ 8,376 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Goodwill [Roll Forward] | |
Net goodwill, beginning of period | $ 13,938 |
Net goodwill, end of period | 13,871 |
Corporate, Non-Segment [Member] | |
Goodwill [Roll Forward] | |
Net goodwill, beginning of period | 13,938 |
Foreign currency impact | (67) |
Net goodwill, end of period | $ 13,871 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Other Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite other intangible assets, gross carrying amount | $ 10,585 | $ 10,660 |
Finite other intangible assets, accumulated amortization | (5,581) | (5,161) |
Finite other intangible assets, net | 5,004 | 5,499 |
Other intangible assets, gross carrying amount | 10,635 | 10,710 |
Other intangible assets, net | 5,054 | 5,549 |
In process research and development [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite other intangible asset, carrying amount | 50 | 50 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite other intangible assets, gross carrying amount | 3,255 | 3,263 |
Finite other intangible assets, accumulated amortization | (1,869) | (1,690) |
Finite other intangible assets, net | 1,386 | 1,573 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite other intangible assets, gross carrying amount | 1,495 | 1,420 |
Finite other intangible assets, accumulated amortization | (853) | (780) |
Finite other intangible assets, net | 642 | 640 |
Trademarks/tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite other intangible assets, gross carrying amount | 679 | 697 |
Finite other intangible assets, accumulated amortization | (606) | (570) |
Finite other intangible assets, net | 73 | 127 |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite other intangible assets, gross carrying amount | 4,913 | 5,035 |
Finite other intangible assets, accumulated amortization | (2,086) | (1,965) |
Finite other intangible assets, net | 2,827 | 3,070 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite other intangible assets, gross carrying amount | 243 | 245 |
Finite other intangible assets, accumulated amortization | (167) | (156) |
Finite other intangible assets, net | $ 76 | $ 89 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | $ 155 | $ 155 | $ 469 | $ 467 |
Other intangible assets, excluding software | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | 155 | 155 | 469 | 467 |
Software, included in “Cost of sales” | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | $ 25 | $ 21 | $ 73 | $ 61 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Future Amortization Expense (Details) $ in Millions | Sep. 30, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,018 | $ 712 |
2,019 | 645 |
2,020 | 613 |
2,021 | 587 |
2,022 | 521 |
2,023 | $ 501 |
TRANSFERS OF FINANCIAL ASSETS -
TRANSFERS OF FINANCIAL ASSETS - Sumamry of Interests Held (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Transfers and Servicing [Abstract] | ||
Carrying value of interests held | $ 0 | $ 677 |
Percentage of anticipated credit losses | 0.00% | 2.64% |
Impact to carrying value - 10% adverse change | $ 0 | $ 0 |
Impact to carrying value - 20% adverse change | $ 0 | $ 1 |
TRANSFERS OF FINANCIAL ASSETS_2
TRANSFERS OF FINANCIAL ASSETS - Cash Proceeds (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Transfers and Servicing [Abstract] | ||||
Collections reinvested in revolving receivables | $ 0 | $ 6,295 | $ 0 | $ 18,027 |
Interests in conduits 1 | $ 1 | $ 2,157 | $ 657 | $ 6,989 |
TRANSFERS OF FINANCIAL ASSETS_3
TRANSFERS OF FINANCIAL ASSETS - Trade AR Sold (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Transfers and Servicing [Abstract] | ||
Delinquencies on sold receivables still outstanding | $ 0 | $ 82 |
Trade accounts receivable outstanding and derecognized | $ 0 | $ 612 |
NOTES PAYABLE, LONG-TERM DEBT_2
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES (Details) € in Millions, $ in Millions | May 31, 2016USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Oct. 30, 2018USD ($) | Oct. 26, 2018EUR (€) |
Gain (Loss) on Extinguishment of Debt | $ (7) | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 11,700 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | 7,200 | ||||
Redemption of Internotes [Member] | |||||
Debt Instrument, Repurchased Face Amount | 86 | $ 31 | |||
Long Term Debt Repayment - Variable Interest Entity [Member] | |||||
Repayments of Long-term Debt and Capital Securities | 75 | 60 | |||
Tax-exempt Bonds, varying maturities through 2038 [Member] | |||||
Repayments of Long-term Debt and Capital Securities | 343 | ||||
Loans Payable [Member] | Five Point Seven Percent Notes Due 2018 [Member] | |||||
Debt Instrument, Repurchased Face Amount | $ 333 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.70% | ||||
Loans Payable [Member] | Six Point Zero Percent Notes Due 2017 [Member] | |||||
Debt Instrument, Repurchased Face Amount | $ 436 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||||
Revolving Credit Facility [Member] | Bilateral Revolving Credit Facility, Due May 2020 [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 200 | ||||
Revolving Credit Facility [Member] | Bilateral Revolving Credit Facility, Due July 2020 [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 200 | ||||
Revolving Credit Facility [Member] | Bilateral Revolving Credit Facility, Due August 2020 [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 100 | ||||
Term Loan Facility [Domain] | DCC Term Loan Facility [Domain] | |||||
Proceeds from Lines of Credit | $ 4,500 | ||||
Secured Debt [Member] | Accounts Receivable Securitization Facility, North American Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 800 | ||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Bilateral Revolving Credit Facility, Due October 2019 [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100 | ||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Five Year Competitive Advance and Revolving Credit Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000 | ||||
Subsequent Event [Member] | Secured Debt [Member] | Accounts Receivable Securitization Facility, European Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | € | € 400 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES (Environmental Matters) (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | $ 826 | $ 878 |
Accrual For Environmental Loss Contingencies Superfund Sites [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | $ 136 | $ 152 |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES (Asbestos-Related Matters of Union Carbide Corporation) (Table and Narrative) (Details) - Asbestos Related Matters [Member] - Union Carbide Corporation [Member] - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Loss Contingencies [Line Items] | ||
Liability for Asbestos and Environmental Claims, Gross | $ 1,290 | $ 1,369 |
Percentage of recorded asbestos liability related to pending claims | 16.00% | |
Percentage of recorded asbestos liability related to future claims | 84.00% |
COMMITMENTS AND CONTINGENT LI_5
COMMITMENTS AND CONTINGENT LIABILITIES (Bayer Arbitration Matter) (Details) - Dow Agrosciences LLC [Domain] - Bayer CropScience v. Dow AgroSciences [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2015 | |
Loss Contingencies [Line Items] | |||
Loss Contingency, Damages Awarded, Value | $ 455 | ||
Loss Contingency, Loss in Period | $ 469 | ||
Loss Contingency Accrual, Payments | $ 469 |
COMMITMENTS AND CONTIGENT LIABI
COMMITMENTS AND CONTIGENT LIABILITIES (Rocky Flats) (Details) - Rocky Flats Matter [Domain] - USD ($) $ in Millions | Jan. 17, 2017 | Jun. 30, 2016 | Jan. 26, 2017 |
Loss Contingencies [Line Items] | |||
Litigation Settlement, Amount Awarded to Other Party | $ 131 | ||
Proceeds from Legal Settlements | $ 131 | ||
Escrow Deposit | $ 130 | ||
Dow Chemical and Rockwell International Corporation [Domain] | |||
Loss Contingencies [Line Items] | |||
Litigation Settlement, Amount Awarded to Other Party | $ 375 |
COMMITMENTS AND CONTINGENT LI_6
COMMITMENTS AND CONTINGENT LIABILITES (Dow Silicones Chapter 11 Related Matters) (Details) (Details) - Dow Silicones Corporation [Member] - USD ($) $ in Millions | Jun. 01, 2004 | Jun. 30, 2017 | Sep. 30, 2018 | Dec. 31, 2017 | Jun. 01, 2016 |
Product Liability Contingency [Line Items] | |||||
Business Combination, Indemnification Assets, Percentage of Future Losses | 50.00% | ||||
Indemnification Asset | $ 0 | $ 0 | |||
Breast Implant and Other Products Liability Claims [Member] | |||||
Product Liability Contingency [Line Items] | |||||
Product Liability Contingency, Payments Incurred To Date | 1,762 | ||||
Product Liability Contingency, Unexpended Balance | 122 | ||||
Loss Contingency Accrual, Product Liability, Net | 263 | 263 | |||
Product Liability Contingency, Loss Exposure, Best Estimate | 2,081 | ||||
Commercial Creditors Litigation [Domain] | |||||
Product Liability Contingency [Line Items] | |||||
Payments for Legal Settlements | $ 1,500 | ||||
Commercial Creditors Litigation [Domain] | |||||
Product Liability Contingency [Line Items] | |||||
Loss Contingency Accrual, Period Increase (Decrease) | $ (33) | ||||
Estimated Litigation Liability | $ 81 | $ 78 | |||
Commercial Creditors Litigation [Domain] | Minimum [Member] | |||||
Product Liability Contingency [Line Items] | |||||
Loss Contingency, Estimate of Possible Loss | 77 | ||||
Commercial Creditors Litigation [Domain] | Maximum [Member] | |||||
Product Liability Contingency [Line Items] | |||||
Loss Contingency, Estimate of Possible Loss | $ 260 |
COMMITMENTS AND CONTINGENT LI_7
COMMITMENTS AND CONTINGENT LIABILITIES (Nova Patent Infringement Matter) (Details) - Dow V. Nova Chemicals Corporation Patent Infringement Matter [Member] $ in Millions, $ in Millions | Jul. 06, 2017USD ($) | Jun. 29, 2017USD ($) | Jun. 29, 2017CAD ($) | Jun. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Loss Contingencies [Line Items] | ||||||
Litigation Settlement, Amount Awarded from Other Party | $ 495 | $ 645 | ||||
Proceeds from Legal Settlements | $ 501 | |||||
Gain (Loss) Related to Litigation Settlement | $ 160 | |||||
Other noncurrent obligations | $ 341 | $ 341 | ||||
Nonoperating Income (Expense) [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Gain (Loss) Related to Litigation Settlement | 137 | |||||
Selling, General and Administrative Expenses [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Gain (Loss) Related to Litigation Settlement | $ 23 |
COMMITMENTS AND CONTINGENT LI_8
COMMITMENTS AND CONTINGENT LIABILITIES (Guarantees) (Table and Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Guarantor Obligations [Line Items] | ||
Guarantor obligations, maximum future payments | $ 5,489 | $ 5,663 |
Guarantor obligations, recorded liability | 165 | 184 |
Long-term Debt | $ 19,690 | $ 20,517 |
Performance Guarantee [Member] | ||
Guarantor Obligations [Line Items] | ||
Final expiration | 2,023 | 2,023 |
Guarantor obligations, maximum future payments | $ 4,594 | $ 4,774 |
Guarantor obligations, recorded liability | $ 35 | $ 49 |
Residual Value Guarantees [Member] | ||
Guarantor Obligations [Line Items] | ||
Final expiration | 2,027 | 2,027 |
Guarantor obligations, maximum future payments | $ 895 | $ 889 |
Guarantor obligations, recorded liability | $ 130 | 135 |
Sadara Chemical Company [Member] | ||
Guarantor Obligations [Line Items] | ||
Equity Method Investment, Ownership Percentage | 35.00% | |
Sadara Chemical Company [Member] | Performance Guarantee [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantor obligations, maximum future payments | $ 4,400 | |
Sadara Chemical Company [Member] | Total Project Financing [Member] | ||
Guarantor Obligations [Line Items] | ||
Project Financing, Maximum Borrowing Capacity | 12,500 | |
Long-term Debt | $ 12,100 | $ 12,400 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Summary of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Apr. 01, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2016 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (9,146) | $ (9,146) | $ (8,571) | $ (8,591) | |||||
Total Equity, Beginning | 28,338 | $ 30,271 | 28,338 | $ 30,271 | 26,961 | 27,009 | $ 27,229 | ||
Other comprehensive income (loss) before reclassifications | 45 | 825 | |||||||
Amounts reclassified from accumulated other comprehensive income | 138 | 51 | 437 | 202 | |||||
Total other comprehensive income | 241 | 279 | 482 | 1,027 | |||||
Reclassification of stranded tax effects 3 | $ 1,057 | ||||||||
Other Comprehensive Income (Loss), Tax | (88) | (62) | (170) | (166) | |||||
Unrealized gains (losses) on investments | |||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 4 | (96) | 7 | (143) | |||||
Total Equity, Beginning | (15) | 0 | (15) | 0 | 17 | $ 43 | |||
Other comprehensive income (loss) before reclassifications | (36) | 50 | |||||||
Amounts reclassified from accumulated other comprehensive income | 3 | (63) | 5 | (93) | |||||
Total other comprehensive income | (31) | (43) | |||||||
Other Comprehensive Income (Loss), Tax | (2) | 28 | 7 | 24 | |||||
Reclassification from AOCI, Current Period, Tax | (1) | 33 | (2) | 50 | |||||
Cumulative Translation Adjustments | |||||||||
Total Equity, Beginning | (1,780) | (1,562) | (1,780) | (1,562) | (1,481) | (2,381) | |||
Other comprehensive income (loss) before reclassifications | (190) | 827 | |||||||
Amounts reclassified from accumulated other comprehensive income | (2) | (8) | |||||||
Total other comprehensive income | (192) | 819 | |||||||
Other Comprehensive Income (Loss), Tax | (4) | (23) | (24) | (49) | |||||
Pension and other postretirement benefit plans | |||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 156 | 153 | 468 | 451 | |||||
Total Equity, Beginning | (7,552) | (7,081) | (7,552) | (7,081) | (6,998) | (7,389) | |||
Other comprehensive income (loss) before reclassifications | 0 | 0 | |||||||
Amounts reclassified from accumulated other comprehensive income | 123 | 105 | 373 | 308 | |||||
Total other comprehensive income | 373 | 308 | |||||||
Other Comprehensive Income (Loss), Tax | (33) | (48) | (95) | (143) | |||||
Reclassification from AOCI, Current Period, Tax | (33) | (48) | (95) | (143) | |||||
Derivative instruments | |||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 16 | 14 | 75 | (1) | |||||
Total Equity, Beginning | 201 | (152) | 201 | (152) | (109) | (95) | |||
Other comprehensive income (loss) before reclassifications | 271 | (52) | |||||||
Amounts reclassified from accumulated other comprehensive income | 12 | 11 | 61 | (5) | |||||
Total other comprehensive income | 332 | (57) | |||||||
Other Comprehensive Income (Loss), Tax | (49) | (19) | (58) | 2 | |||||
Reclassification from AOCI, Current Period, Tax | (4) | (3) | (14) | (4) | |||||
Accumulated Other Comprehensive Loss | |||||||||
Total Equity, Beginning | $ (9,146) | $ (8,795) | (9,146) | (8,795) | (8,571) | $ (8,591) | $ (9,822) | $ (9,822) | |
Total other comprehensive income | 482 | $ 1,027 | |||||||
Accounting Standards Update 2018-02 [Domain] | |||||||||
Reclassification of stranded tax effects 3 | (1,057) | ||||||||
Accounting Standards Update 2018-02 [Domain] | Unrealized gains (losses) on investments | |||||||||
Reclassification of stranded tax effects 3 | (1) | ||||||||
Accounting Standards Update 2018-02 [Domain] | Cumulative Translation Adjustments | |||||||||
Reclassification of stranded tax effects 3 | (107) | ||||||||
Accounting Standards Update 2018-02 [Domain] | Pension and other postretirement benefit plans | |||||||||
Reclassification of stranded tax effects 3 | (927) | ||||||||
Accounting Standards Update 2018-02 [Domain] | Derivative instruments | |||||||||
Reclassification of stranded tax effects 3 | $ (22) | ||||||||
Accounting Standards Update 2016-01 [Member] | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 20 | ||||||||
Total Equity, Beginning | $ 0 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS Reclassification Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 138 | $ 51 | $ 437 | $ 202 |
Nonoperating Income (Expense) | 11 | 268 | 99 | 146 |
Unrealized gains (losses) on investments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 4 | (96) | 7 | (143) |
Reclassification from AOCI, Current Period, Tax | (1) | 33 | (2) | 50 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 3 | (63) | 5 | (93) |
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Nonoperating Income (Expense) | 0 | (2) | (2) | (8) |
Pension and other postretirement benefit plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 156 | 153 | 468 | 451 |
Reclassification from AOCI, Current Period, Tax | (33) | (48) | (95) | (143) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 123 | 105 | 373 | 308 |
Derivative instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 16 | 14 | 75 | (1) |
Reclassification from AOCI, Current Period, Tax | (4) | (3) | (14) | (4) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 12 | $ 11 | $ 61 | $ (5) |
NONCONTROLLING INTERESTS Nonc_3
NONCONTROLLING INTERESTS Noncontrolling Interests (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Noncontrolling Interest [Line Items] | ||||
Balance at beginning of period | $ 1,152 | $ 1,168 | $ 1,186 | $ 1,242 |
Net income attributable to noncontrolling interests | 36 | 22 | 102 | 87 |
Distributions to noncontrolling interests 1 | (2) | (7) | (63) | (55) |
Noncontrolling Interest, Decrease from Deconsolidation | 0 | (119) | ||
Cumulative translation adjustments | (5) | 5 | (45) | 33 |
Other | 0 | 1 | 1 | 1 |
Balance at end of period | 1,181 | 1,189 | 1,181 | 1,189 |
Noncontrolling Interest, Decrease From Dividends To Joint Venture | $ 0 | $ 0 | $ 6 | $ 3 |
PENSION PLANS AND OTHER POSTR_3
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 1,100 | |||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 1,600 | $ 1,600 | ||
Payment for Pension and Other Postretirement Benefits | 1,538 | |||
Pension Plan [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | 131 | $ 127 | 396 | $ 378 |
Interest cost | 216 | 221 | 651 | 660 |
Expected return on plan assets | (401) | (388) | (1,211) | (1,156) |
Amortization of prior service credit | (6) | (6) | (18) | (18) |
Amortization of net (gain) loss | 168 | 161 | 509 | 476 |
Curtailment/settlement 1 | 0 | 0 | 0 | (6) |
Net periodic benefit cost | 108 | 115 | 327 | 334 |
Other Postretirement Benefits [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | 3 | 3 | 9 | 9 |
Interest cost | 11 | 14 | 33 | 41 |
Amortization of net (gain) loss | (6) | (2) | (18) | (5) |
Net periodic benefit cost | $ 8 | $ 15 | $ 24 | $ 45 |
STOCK-BASED COMPENSATION (Stock
STOCK-BASED COMPENSATION (Stock Incentive Plan) (Details) shares in Millions | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 6.3 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 71.85 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 15.46 |
Deferred Compensation, Share-based Payments [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 1.9 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 71.83 |
FINANCIAL INSTRUMENTS (Summary
FINANCIAL INSTRUMENTS (Summary of Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Cash Equivalents, at Carrying Value | $ 778 | $ 778 | $ 2,280 | |
Cash Equivalents, Accumulated Gross Unrealized Gain, Before Tax | 0 | 0 | 0 | |
Cash Equivalents, Accumulated Gross Unrealized Loss, Before Tax | 0 | 0 | 0 | |
Cash Equivalents, Fair Value | 778 | 778 | 2,280 | |
Available-for-sale Debt Securities, Amortized Cost Basis, Current | 105 | 105 | 4 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, Current, before Tax | 1 | 1 | 0 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, Current, before Tax | 0 | 0 | 0 | |
Debt Securities, Available-for-sale, Current | 106 | 106 | 4 | |
Debt Securities, Available-for-sale, Amortized Cost | 1,712 | 1,712 | 1,341 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 38 | 38 | 45 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 51 | 51 | 14 | |
Debt Securities, Available-for-sale | 1,699 | 1,699 | 1,372 | |
Equity Securities, Amortized Cost Basis | 156 | 156 | 164 | |
Equity Securities, Accumulated Gross Unrealized Gain, Before Tax | 22 | 22 | 2 | |
Equity Securities, Accumulated Gross Unrealized Loss, Before Tax | 13 | 13 | 26 | |
Equity Securities, Fair Value | 165 | 165 | 140 | |
Other Investments and Securities, at Cost | 1,868 | 1,868 | 1,505 | |
Other Investments and Securities, Accumulated Gross Unrealized Gain, Before Tax | 60 | 60 | 47 | |
Other Investments and Securities, Accumulated Gross Unrealized Loss, Before Tax | 64 | 64 | 40 | |
Other Investments | 1,864 | 1,864 | 1,512 | |
Cash Equivalents, Marketable Securities and Other Investments, Amortized Cost Basis | 2,751 | 2,751 | 3,789 | |
Cash Equivalents, Marketable Securities and Other Investments, Accumulated Gross Unrealized Gain, Before Tax | 61 | 61 | 47 | |
Cash Equivalents, Marketable Securities and Other Investments, Accumulated Gross Unrealized Loss, Before Tax | 64 | 64 | 40 | |
Cash Equivalents, Marketable Securities and Other Investments, Fair Value | 2,748 | 2,748 | 3,796 | |
Long-term Debt | 19,690 | 19,690 | 20,517 | |
Long Term Debt, Accumulated Gross Unrealized Gain, Before Tax | 167 | 167 | 6 | |
Long Term Debt, Accumulated Gross Unrealized Loss, Before Tax | 1,252 | 1,252 | 2,104 | |
Long-term Debt, Fair Value | 20,775 | 20,775 | 22,615 | |
Derivative Assets (Liabilities), Accumulated Gross Unrealized Gain, Before Tax | 507 | 507 | 152 | |
Derivative Assets (Liabilities), Accumulated Gross Unrealized Loss, Before Tax | 227 | 227 | 372 | |
Derivative Assets (Liabilities), at Fair Value, Net | 280 | 280 | (220) | |
Long Term Debt, Accumulated Fair Value Adjustment | 18 | 18 | 19 | |
Proceeds from sales of available-for-sale securities | 880 | $ 181 | ||
Gross realized gains | 19 | 4 | ||
Gross realized losses | 26 | $ 0 | ||
Equity Securities, Net Unrealized Gain (Loss) | 2 | 10 | ||
Cost Method Investments | 57 | 57 | ||
US Treasury and Government [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt Securities, Available-for-sale, Amortized Cost | 704 | 704 | 637 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 8 | 8 | 13 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 24 | 24 | 11 | |
Debt Securities, Available-for-sale | 688 | 688 | 639 | |
Corporate Debt Securities [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt Securities, Available-for-sale, Amortized Cost | 1,008 | 1,008 | 704 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 30 | 30 | 32 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 27 | 27 | 3 | |
Debt Securities, Available-for-sale | 1,011 | 1,011 | 733 | |
Interest Rate Contract [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Derivative Assets (Liabilities), Accumulated Gross Unrealized Gain, Before Tax | 41 | 41 | 0 | |
Derivative Assets (Liabilities), Accumulated Gross Unrealized Loss, Before Tax | 2 | 2 | 4 | |
Derivative Assets (Liabilities), at Fair Value, Net | 39 | 39 | (4) | |
Foreign Exchange Contract [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Derivative Assets (Liabilities), Accumulated Gross Unrealized Gain, Before Tax | 191 | 191 | 22 | |
Derivative Assets (Liabilities), Accumulated Gross Unrealized Loss, Before Tax | 32 | 32 | 112 | |
Derivative Assets (Liabilities), at Fair Value, Net | 159 | 159 | (90) | |
Commodity Contract [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Derivative Assets (Liabilities), Accumulated Gross Unrealized Gain, Before Tax | 275 | 275 | 130 | |
Derivative Assets (Liabilities), Accumulated Gross Unrealized Loss, Before Tax | 193 | 193 | 256 | |
Derivative Assets (Liabilities), at Fair Value, Net | 82 | 82 | $ (126) | |
Long-term Debt [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Derivative, Notional Amount | $ 2,990 | $ 2,990 |
FINANCIAL INSTRUMENTS (Derivati
FINANCIAL INSTRUMENTS (Derivatives) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | $ 5 | $ 5 | $ 21 | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 3 | 3 | 0 | ||
Interest Rate Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | 30 | 30 | (3) | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 33 | ||||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | (1) | (1) | |||
Foreign Exchange Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | 9 | 9 | |||
Commodity Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Price Risk Cash Flow Hedge Unrealized Gain (Loss) to be Reclassified During Next 12 Months | 27 | 27 | |||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Notional Amount | 2,437 | 2,437 | |||
Fair Value, Inputs, Level 2 [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 635 | 635 | 273 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (128) | (128) | (121) | ||
Derivative Asset | 507 | 507 | 152 | ||
Derivative Liability, Fair Value, Gross Liability | 360 | 360 | 512 | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 133 | 133 | 140 | ||
Derivative Liability | 227 | 227 | 372 | ||
Fair Value, Inputs, Level 2 [Member] | Designated as Hedging Instrument [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 477 | 477 | 141 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (50) | (50) | (55) | ||
Derivative Asset | 427 | 427 | 86 | ||
Derivative Liability, Fair Value, Gross Liability | 236 | 236 | 352 | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 55 | 55 | 73 | ||
Derivative Liability | 181 | 181 | 279 | ||
Fair Value, Inputs, Level 2 [Member] | Not Designated as Hedging Instrument [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 158 | 158 | 132 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (78) | (78) | (66) | ||
Derivative Asset | 80 | 80 | 66 | ||
Derivative Liability, Fair Value, Gross Liability | 124 | 124 | 160 | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 78 | 78 | 67 | ||
Derivative Liability | 46 | 46 | 93 | ||
Deferred charges and other assets [Member] | Fair Value, Inputs, Level 2 [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 43 | 43 | |||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (2) | (2) | |||
Derivative Asset | 41 | 41 | |||
Deferred charges and other assets [Member] | Fair Value, Inputs, Level 2 [Member] | Designated as Hedging Instrument [Member] | Commodity Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 150 | 150 | 70 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (2) | (2) | (5) | ||
Derivative Asset | 148 | 148 | 65 | ||
Deferred charges and other assets [Member] | Fair Value, Inputs, Level 2 [Member] | Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 11 | 11 | 7 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (1) | (1) | (3) | ||
Derivative Asset | 10 | 10 | 4 | ||
Accounts and Notes Receivable Other [Member] | Fair Value, Inputs, Level 2 [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 137 | 137 | 75 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (76) | (76) | (58) | ||
Derivative Asset | 61 | 61 | 17 | ||
Other Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 168 | 168 | 51 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (38) | (38) | (46) | ||
Derivative Asset | 130 | 130 | 5 | ||
Other Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | Designated as Hedging Instrument [Member] | Commodity Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 116 | 116 | 20 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (8) | (8) | (4) | ||
Derivative Asset | 108 | 108 | 16 | ||
Other Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 10 | 10 | 50 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (1) | (1) | (5) | ||
Derivative Asset | 9 | 9 | 45 | ||
Accrued and Other Current Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 4 | 4 | 4 | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 2 | 2 | 0 | ||
Derivative Liability | 2 | 2 | 4 | ||
Accrued and Other Current Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 43 | 43 | 109 | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 38 | 38 | 46 | ||
Derivative Liability | 5 | 5 | 63 | ||
Accrued and Other Current Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | Designated as Hedging Instrument [Member] | Commodity Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 98 | 98 | 96 | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 8 | 8 | 15 | ||
Derivative Liability | 90 | 90 | 81 | ||
Accrued and Other Current Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 8 | 8 | 45 | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 1 | 1 | 6 | ||
Derivative Liability | 7 | 7 | 39 | ||
Other Noncurrent Obligations [Member] | Fair Value, Inputs, Level 2 [Member] | Designated as Hedging Instrument [Member] | Commodity Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 91 | 91 | 143 | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 7 | 7 | 12 | ||
Derivative Liability | 84 | 84 | 131 | ||
Other Noncurrent Obligations [Member] | Fair Value, Inputs, Level 2 [Member] | Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 13 | 13 | 8 | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 1 | 1 | 3 | ||
Derivative Liability | 12 | 12 | 5 | ||
Accounts Payable Other [Member] | Fair Value, Inputs, Level 2 [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 103 | 103 | 107 | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 76 | 76 | 58 | ||
Derivative Liability | 27 | 27 | $ 49 | ||
Other Nonoperating Income (Expense) [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 26 | $ (117) | $ 91 | $ (277) |
FAIR VALUE MEASUREMENTS (Summar
FAIR VALUE MEASUREMENTS (Summary of Recurring Measured Fair Values) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | $ 1,699 | $ 1,372 |
Long-term debt including debt due within one year 6 | 20,775 | 22,615 |
Interests in trade accounts receivable conduits 2 | 0 | 677 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 635 | 273 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents 1 | 778 | 2,280 |
Marketable securities | 106 | 4 |
Equity securities 3 | 165 | 140 |
Total assets at fair value | 3,383 | 4,746 |
Long-term debt including debt due within one year 6 | 20,775 | 22,615 |
Total liabilities at fair value | 21,135 | 23,127 |
Interests in trade accounts receivable conduits 2 | 677 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents 1 | 0 | 0 |
Marketable securities | 0 | 0 |
Equity securities 3 | 21 | 88 |
Total assets at fair value | 96 | 135 |
Long-term debt including debt due within one year 6 | 0 | 0 |
Total liabilities at fair value | 30 | 31 |
Interests in trade accounts receivable conduits 2 | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents 1 | 778 | 2,280 |
Marketable securities | 106 | 4 |
Equity securities 3 | 144 | 52 |
Total assets at fair value | 3,287 | 3,934 |
Long-term debt including debt due within one year 6 | 20,775 | 22,615 |
Total liabilities at fair value | 21,105 | 23,096 |
Interests in trade accounts receivable conduits 2 | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents 1 | 0 | 0 |
Marketable securities | 0 | 0 |
Equity securities 3 | 0 | 0 |
Total assets at fair value | 0 | 677 |
Long-term debt including debt due within one year 6 | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Interests in trade accounts receivable conduits 2 | 677 | |
US Treasury and Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 688 | 639 |
US Treasury and Government [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 688 | 639 |
US Treasury and Government [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
US Treasury and Government [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 688 | 639 |
US Treasury and Government [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 1,011 | 733 |
Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 1,011 | 733 |
Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 1,011 | 733 |
Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 43 | |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 4 | 4 |
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 0 | 0 |
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 43 | |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 4 | 4 |
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 0 | 0 |
Foreign Exchange 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 Asset Including Not Subject to Master Netting Arrangement | 305 | 126 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 146 | 216 |
Foreign Exchange Contract [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 0 | 0 |
Foreign Exchange Contract [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 305 | 126 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 146 | 216 |
Foreign Exchange Contract [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 0 | 0 |
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 Asset Including Not Subject to Master Netting Arrangement | 287 | 147 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 210 | 292 |
Commodity Contract [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 75 | 47 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 30 | 31 |
Commodity Contract [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 212 | 100 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 180 | 261 |
Commodity Contract [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Level
FAIR VALUE MEASUREMENTS (Level 3 Inputs) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Noncash Transactions | $ 23 | |||||||
Fair Value, Inputs, Level 3 [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Balance at beginning/end of period | 0 | $ 1,839 | $ 0 | $ 1,839 | $ 24 | $ 677 | $ 1,684 | $ 1,237 |
Gain (loss) included in earnings 2 | 0 | (15) | 3 | (17) | ||||
Purchases 3 | 0 | 2,327 | 0 | 7,608 | ||||
Settlements 3, 4 | $ (24) | $ (2,157) | $ (680) | $ (6,989) |
FAIR VALUE MEASUREMENTS FAIR VA
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Summary of Nonrecurring Measured Fair Values) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | 13 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Sep. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restructuring, Settlement and Impairment Provisions | $ 108 | $ 139 | $ 371 | $ 126 | ||
DowDuPont Cost Synergy Program [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restructuring, Settlement and Impairment Provisions | 101 | 352 | $ 687 | $ 1,039 | ||
Asset write-downs and write-offs [Member] | DowDuPont Cost Synergy Program [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restructuring, Settlement and Impairment Provisions | $ 58 | $ 133 | $ 287 | $ 420 |
VARIABLE INTEREST ENTITIES (Sch
VARIABLE INTEREST ENTITIES (Schedule of Consolidated Variable Interest Entities, Carrying Amounts of Assets and Liabilities) (Details) - Variable Interest Entity, Primary Beneficiary [Member] - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Assets, Pledged | $ 1,082 | $ 1,195 |
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities | 459 | 593 |
Cash and cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Assets, Current, Pledged | 133 | 107 |
Other current assets | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Assets, Current, Pledged | 136 | 131 |
Net property | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Assets, Noncurrent, Pledged | 769 | 907 |
Other noncurrent assets | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Assets, Noncurrent, Pledged | 44 | 50 |
Current liabilities | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Liabilities, Current | 278 | 303 |
Current liabilities | Variable Interest Entities Used to Monetize Accounts Receivable [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Liabilities, Current | 0 | 1 |
Variable Interest Entity, Consolidated, Liabilities, Current, No Recourse | 0 | 0 |
Long-term debt | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Liabilities, Noncurrent, No Recourse | 148 | 249 |
Variable Interest Entity, Consolidated, Liabilities, Noncurrent | 249 | |
Other noncurrent obligations | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Liabilities, Noncurrent | 33 | 41 |
Current Assets [Member] | Variable Interest Entities Used to Monetize Accounts Receivable [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Assets, Current | 1 | 671 |
Variable Interest Entity, Consolidated, Assets, Current, Pledged | $ 0 | $ 0 |
VARIABLE INTEREST ENTITIES (Non
VARIABLE INTEREST ENTITIES (Nonconsolidated Variable Interest Entity) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Investment in nonconsolidated affiliates | $ 3,818 | $ 3,742 |
Variable Interest Entity, Not Primary Beneficiary [Member] | Hemlock Semiconductor LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 0 | 0 |
Equity Method Investment, Liability, Noncurrent | (699) | (752) |
Variable Interest Entity, Not Primary Beneficiary [Member] | Silicon Inputs Joint Ventures [Member] | ||
Variable Interest Entity [Line Items] | ||
Investment in nonconsolidated affiliates | 99 | 103 |
Variable Interest Entity, Not Primary Beneficiary [Member] | AFSI [Member] | ||
Variable Interest Entity [Line Items] | ||
Investment in nonconsolidated affiliates | 48 | 51 |
Other | $ 0 | $ 4 |
RELATD PARTY TRANSACTIONS (Deta
RELATD PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Cost of sales | $ 11,933 | $ 10,663 | $ 35,885 | $ 31,618 | |
DowDuPont [Member] | |||||
Cash Dividends Paid to DowDuPont | 1,048 | 3,158 | |||
Accounts Receivable, Related Parties, Current | 247 | 247 | $ 354 | ||
DuPont and its Affiliates [Member] | |||||
Net sales | 73 | 180 | |||
Cost of sales | 51 | 119 | |||
Related Party - Cost Recoveries | 93 | 259 | |||
Related Party Transaction, Purchases from Related Party | 73 | 151 | |||
Accounts and Notes Receivable Other [Member] | DuPont and its Affiliates [Member] | |||||
Related Party Transaction, Due from (to) Related Party | 117 | 117 | 26 | ||
Accounts Payable Other [Member] | DuPont and its Affiliates [Member] | |||||
Related Party Transaction, Due from (to) Related Party | $ 91 | $ 91 | $ 12 |
Uncategorized Items - dow-20180
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (48,000,000) |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (1,037,000,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 989,000,000 |