10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

R ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended DECEMBER 31, 2014

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________________ to ____________________

Commission File Number: 1-1463

UNION CARBIDE CORPORATION

(Exact name of registrant as specified in its charter)

New York State or other jurisdiction of
incorporation or organization 13-1421730 (I.R.S. Employer Identification No.)

1254 Enclave Parkway, Houston, Texas  77077

(Address of principal executive offices)          (Zip Code)

Registrant's telephone number, including area code:  281-966-2727

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

o Yes    R No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

o Yes    R No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.                                    R Yes    o No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter)during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

R Yes    o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o Accelerated filer o Non-accelerated filer R Small reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

o Yes    R No

At February 13, 2015, 1,000 shares of common stock were outstanding, all of which were held by the registrant’s parent, The Dow Chemical Company.

The registrant meets the conditions set forth in General Instructions I(1)(a) and (b) of Form 10-K and is therefore filing this Form with the reduced disclosure format.

DOCUMENTS INCORPORATED BY REFERENCE

None

Union Carbide Corporation

ANNUAL REPORT ON FORM 10-K

For the Fiscal Year Ended December 31, 2014

TABLE OF CONTENTS

		PAGE
PART I
Item 1.	Business.	4
Item 1A.	Risk Factors.	7
Item 1B.	Unresolved Staff Comments.	10
Item 2.	Properties.	11
Item 3.	Legal Proceedings.	12
Item 4.	Mine Safety Disclosures.	13
PART II
Item 5.	Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.	14
Item 6.	Selected Financial Data.	15
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations.	16
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk.	24
Item 8.	Financial Statements and Supplementary Data.	25
Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.	58
Item 9A.	Controls and Procedures.	59
Item 9B.	Other Information.	61
PART III
Item 10.	Directors, Executive Officers and Corporate Governance.	62
Item 11.	Executive Compensation.	62
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.	62
Item 13.	Certain Relationships and Related Transactions, and Director Independence.	62
Item 14.	Principal Accounting Fees and Services.	62
PART IV
Item 15.	Exhibits, Financial Statement Schedules.	63
SIGNATURES		65

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Union Carbide Corporation and Subsidiaries

FORWARD-LOOKING STATEMENTS

Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may appear throughout this report, including without limitation, the following sections: “Item 1. Business,” “Management's Discussion and Analysis,” and “Risk Factors.” These forward-looking statements are generally identified by the words "anticipate," “believe,” “estimate,” “expect,” “future,” “intend,” “may,” “opportunity,” "outlook," “plan,” “project,” “should,” “strategy,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. A detailed discussion of principal risks and uncertainties which may cause actual results and events to differ materially from such forward-looking statements is included in the section titled “Risk Factors” (Part I, Item 1A of this Form 10-K). Union Carbide Corporation undertakes no obligation to update or revise publicly any forward-looking statements whether because of new information, future events, or otherwise, except as required by securities and other applicable laws.

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Union Carbide Corporation and Subsidiaries

PART I, Item 1. Business.

THE CORPORATION

Union Carbide Corporation (the “Corporation” or “UCC”) is a chemicals and polymers company that has been a wholly owned subsidiary of The Dow Chemical Company (“Dow”) since 2001. Except as otherwise indicated by the context, the terms “Corporation” or “UCC” as used herein mean Union Carbide Corporation and its consolidated subsidiaries.

Dow conducts its worldwide operations through global businesses, and the Corporation's business activities comprise components of Dow's global businesses rather than stand-alone operations. Because there are no separable reportable business segments for UCC and no detailed business information is provided to a chief operating decision maker regarding the Corporation's stand-alone operations, the Corporation's results are reported as a single operating segment. In addition, in order to simplify the customer interface process, the Corporation sells substantially all its products to Dow. Products are sold to Dow at market-based prices, in accordance with the terms of Dow's intercompany pricing policies.

Available Information

The Corporation's annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, are available free of charge through the Financial Reports-SEC Filings section of the Corporation's website (www.unioncarbide.com), as soon as reasonably practicable after the reports are electronically filed or furnished with the U.S. Securities and Exchange Commission (“SEC”). The SEC maintains a website that contains these reports as well as proxy statements and other information regarding issuers that file electronically. The SEC's website is at www.sec.gov. The Corporation's website and its content are not deemed incorporated by reference into this report.

PRODUCTS

The following is a description of the Corporation's principal products.

Electrical and Telecommunications - polyolefin-based compounds for high-performance insulation, semiconductives and jacketing systems for power distribution, telecommunications, and flame-retardant wire and cable. Key product lines include: REDI-LINK™ Polyethylene-Based Wire and Cable Compounds, SI-LINK™ Polyethylene-Based Low Voltage Insulation Compounds, UNIGARD™ HP High-Performance Flame-Retardant Compounds, UNIGARD™ RE Reduced Emissions Flame-Retardant Compounds, and UNIPURGE™ Purging Compounds.

Ethylene Oxide/Ethylene Glycol (“EO/EG”) - ethylene oxide, a chemical intermediate primarily used in the manufacture of monoethylene glycol (“MEG”), polyethylene glycol, glycol ethers, ethanolamines, surfactants and other performance chemicals and polymers; di- and triethylene glycol, used in a variety of applications, including boat construction, shoe manufacturing, natural gas-drying and other moisture-removing applications, and plasticizers for safety glasses; and tetraethylene glycol, used predominantly in the production of plasticizers for automotive windows. MEG is used extensively in the production of polyester fiber, resin and film, automotive antifreeze and engine coolants, and aircraft anti-icing and deicing fluids.

Hydrocarbons - ethylene and propylene; internal feedstocks that are primarily consumed by downstream businesses to optimize integration benefits and drive low costs.

Industrial Chemicals and Polymers - broad range of products for specialty applications, including pharmaceutical, animal food supplements, personal care, industrial and household cleaning, coatings for beverage and food cans, industrial coatings and many other industrial uses. Product lines include acrolein and derivatives, glutaraldehydes, CARBOWAX™ and CARBOWAX™ SENTRY™ Polyethylene Glycols and Methoxypolyethylene Glycols, TERGITOL™ and TRITON™ Surfactants, UCAR™ Deicing Fluids, UCARTHERM™ Heat Transfer Fluids and UCON™ Fluids.

Polyethylene - includes FLEXOMER™ Polyethylene, very low density polyethylene resins used as impact modifiers in other polymers and to produce flexible hose and tubing, frozen-food bags and stretch wrap; TUFLIN™ Linear Low Density and UNIVAL™ High Density Polyethylene resins used in high-volume applications such as housewares; milk, water, bleach and detergent bottles; grocery sacks; trash bags; packaging; and water and gas pipe.

Solvents and Intermediates - includes oxo aldehydes, acids and alcohols used as chemical intermediates and industrial solvents and in herbicides, plasticizers, paint dryers, jet-turbine lubricants, lube oil additives, and food and feed preservatives;

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and esters, which serve as solvents in industrial coatings and printing inks and in the manufacturing processes for pharmaceuticals and polymers.

Technology Licensing and Catalysts - includes catalysts for supply and licensing of the METEOR™ Process for EO/EG and the LP OXO process for oxo alcohols; and licensing of the METEOR™ Process for EO/EG and the LP OXO process for oxo alcohols through Dow Technology Investments LLC, a 50:50 joint venture with Dow Global Technologies LLC, a Dow subsidiary.

Vinyl Acetate Monomer - a building block for the manufacture of a variety of polymers used in water-based emulsion paints, adhesives, paper coatings, textiles, safety glass and acrylic fibers.

Water Soluble Polymers - polymers used to enhance the physical and sensory properties of end-use products in a wide range of applications including food, paints and coatings, pharmaceuticals, oil and gas, home and personal care, building and construction, and other specialty applications. Key product lines include CELLOSIZE™ Hydroxyethyl Cellulose, POLYOX™ Water-Soluble Resins, and products for hair and skin manufactured by Amerchol Corporation, a wholly owned subsidiary.

COMPETITION

The chemical industry has been historically competitive and this competitive environment is expected to continue. Large, multinational chemical firms, as well as the chemical divisions of the major national and international oil companies, provide substantial competition both in the United States and abroad.

RESEARCH AND DEVELOPMENT

The Corporation is engaged in a continuous program of basic and applied research to develop new products and processes, to improve and refine existing products and processes, and to develop new applications for existing products. Research and development expenses were $20 million in 2014, $25 million in 2013 and $35 million in 2012.

PATENTS, LICENSES AND TRADEMARKS

The Corporation continually applies for and obtains U.S. and foreign patents that relate to a wide variety of products and processes, has a substantial number of pending patent applications throughout the world and is licensed under a number of patents. At December 31, 2014, the Corporation owned 146 active U.S. patents and 539 active foreign patents related to a wide variety of products and processes. These patents expire as follows:

Remaining Life of Patents Owned at December 31, 2014
	United States	Foreign
Within 5 years	76	174
6 to 10 years	28	201
11 to 15 years	20	124
16 to 20 years	22	40
Total	146	539

The Corporation also has a large number of trademarks. Although the Corporation considers that its patents, licenses and trademarks in the aggregate constitute a valuable asset, it does not regard its business as being materially dependent on any single or group of related patents, licenses or trademarks.

PRINCIPAL PARTLY OWNED COMPANIES

UCC had no principal nonconsolidated affiliates at December 31, 2014 and the Corporation's ownership interest changed in 2013 for the following:

• Nippon Unicar Company Limited ("NUC") - previously owned 50 percent - a Japan-based manufacturer of polyethylene and specialty polyethylene compounds was sold to TonenGeneral Sekiyu K. K. on July 1, 2013.

• Univation Technologies, LLC ("Univation") - previously owned 50 percent - a United States-based company that develops, markets and licenses the UNIPOL™ Polyethylene Process Technology and sells related catalysts, including metallocene catalysts. On September 26, 2013, UCC declared a stock dividend to Dow of its 100 percent ownership in Union Carbide Subsidiary C, Inc., which included UCC's full ownership interest in Univation.

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FINANCIAL INFORMATION ABOUT FOREIGN AND DOMESTIC OPERATIONS AND EXPORT SALES

In 2014, the Corporation derived 24 percent of its trade sales to external customers from customers outside the United States and had 3 percent of its property investment located outside the United States. See Note 20 to the Consolidated Financial Statements for information on sales to external customers and long-lived assets by geographic area.

PROTECTION OF THE ENVIRONMENT

Matters pertaining to the environment are discussed in Management's Discussion and Analysis of Financial Condition and Results of Operations, and Notes 1 and 13 to the Consolidated Financial Statements.

OTHER ACTIVITIES

Divestitures

On October 11, 2013, Dow entered into a definitive agreement under which its global Polypropylene Licensing and Catalysts business would be divested to W.R. Grace & Co. On December 2, 2013, the sale was completed and proceeds allocated to the Corporation were $398 million, net of working capital adjustments and cost to sell, with proceeds subject to customary post closing adjustments, which were finalized in the fourth quarter of 2014. Included in the divestiture was the Corporation's polypropylene catalysts manufacturing facility in Norco, Louisiana, as well as customer contracts, accounts receivable, licenses, intellectual property and inventory. See Note 4 to the Consolidated Financial Statements for additional information.

On January 31, 2013, UCC entered into a definitive agreement to sell its 50 percent ownership interest in NUC to TonenGeneral Sekiyu K. K. On July 1, 2013, the sale was completed for $13 million. As a result of this share sale, the Corporation reclassified a $20 million gain, primarily attributable to cumulative translation adjustments, from "Accumulated other comprehensive loss" into earnings in the third quarter of 2013 and is included in "Sundry income (expense) - net" in the consolidated statements of operations. Including this reclassification, the sale resulted in no pretax gain or loss. See Note 7 to the Consolidated Financial Statements for additional information.

Stock Dividend

On September 26, 2013, UCC declared a stock dividend to Dow of its 100 percent ownership interest in Union Carbide Subsidiary C, Inc., which included UCC's full ownership interest in Univation. This stock dividend was effective on September 29, 2013, and totaled $70 million.

Dividends

On a quarterly basis, the Corporation's Board of Directors reviews and approves a dividend distribution to its parent company and sole shareholder, Dow. The Board takes into consideration the level of earnings and cash flows, among other factors, in determining the amount of the dividend distribution.

The Corporation declared and paid cash dividends of $1.3 billion to Dow in 2014; dividends paid to Dow were $661 million in 2013.

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Union Carbide Corporation and Subsidiaries

PART I, Item 1A. Risk Factors.

RISK FACTORS

The factors described below represent the Corporation's principal risks.

Global Economic Conditions: The Corporation operates in a global, competitive environment, which gives rise to operating and market risk exposure.

The Corporation sells substantially all of its products to Dow, which operates in a competitive, global environment, and competes worldwide for sales. Increased levels of competition could result in lower prices or lower sales volume, which could have a negative impact on the Corporation's results of operations.

Economic conditions around the world and in certain industries in which the Corporation does business also impact sales price and volume. As a result, market uncertainty or an economic downturn in the geographic areas or industries in which UCC sells its products could reduce demand for these products and result in decreased sales volume, which could have a negative impact on UCC's results of operations.

Raw Materials: Availability of purchased feedstocks and energy and the volatility of these costs impact the Corporation's operating costs and add variability to earnings.

Purchased feedstock and energy costs account for a substantial portion of the Corporation's total production costs and operating expenses. The Corporation purchases hydrocarbon raw materials including ethane, propane, butane and naphtha as feedstocks. The Corporation also purchases certain monomers, primarily ethylene and propylene, to supplement internal production, as well as other raw materials. The Corporation purchases natural gas, primarily to generate electricity, and purchases electric power.

Feedstock and energy costs generally follow price trends in crude oil and natural gas, which are sometimes volatile. Ultimately, the ability to pass on underlying cost increases is dependent on market conditions. Conversely, when feedstock and energy costs decline, selling prices generally decline as well. As a result, volatility in these costs could impact the Corporation's results of operations.

The Corporation restarted an ethylene facility in St. Charles, Louisiana, in 2012 to take advantage of increasing supplies of low-cost natural gas and natural gas liquids ("NGLs") from shale gas. As a result of this action, the Corporation's exposure to purchased ethylene and propylene has declined, offset by increased exposure to ethane and propane feedstocks.

While the Corporation expects abundant and cost-advantaged supplies of NGLs in the United States to persist for the foreseeable future, if NGLs were to become significantly less advantaged than crude oil-based feedstocks, it could have a negative impact on the Corporation's results of operations and future investments.

Also, if the Corporation's key suppliers of feedstocks and energy are unable to provide the raw materials required for production, it could have a negative impact on the Corporation's results of operations.

Supply/Demand Balance: Earnings generated by the Corporation vary based in part on the balance of supply relative to demand within the industry.

The balance of supply relative to demand within the industry may be significantly impacted by the addition of new capacity, especially for basic commodities where capacity is generally added in large increments as world-scale facilities are built. This may disrupt industry balances and result in downward pressure on prices due to the increase in supply, which could negatively impact the Corporation's results of operations.

Financial Flexibility: Market conditions could reduce Dow's financial flexibility, which could impact the financial flexibility of the Corporation.

Adverse economic conditions could reduce Dow's flexibility to respond to changing business and economic conditions or to fund capital expenditures or working capital needs. The economic environment could result in a contraction in the availability of credit in the marketplace and reduce sources of liquidity for Dow and could result in higher borrowing costs. Since Dow is a service provider, material debtor, and the major customer of the Corporation, reduced financial flexibility for Dow could potentially impact the financial flexibility of the Corporation.

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Environmental Compliance: The costs of complying with evolving regulatory requirements could negatively impact the Corporation's financial results. Actual or alleged violations of environmental laws or permit requirements could result in restrictions or prohibitions on plant operations, substantial civil or criminal sanctions, as well as the assessment of strict liability and/or joint and several liability.

The Corporation is subject to extensive federal, state, local and foreign laws, regulations, rules and ordinances relating to pollution, protection of the environment, greenhouse gas emissions and the generation, storage, handling, transportation, treatment, disposal and remediation of hazardous substances and waste materials. At December 31, 2014, the Corporation had accrued obligations of $132 million ($126 million at December 31, 2013) for probable environmental remediation and restoration costs, including $22 million ($23 million at December 31, 2013) for the remediation of Superfund sites. This is management's best estimate of the costs for remediation and restoration with respect to environmental matters for which the Corporation 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. Costs and capital expenditures relating to environmental, health or safety matters are subject to evolving regulatory requirements and depend on the timing of the promulgation and enforcement of specific standards which impose the requirements. Moreover, changes in environmental regulations could inhibit or interrupt the Corporation's operations, or require modifications to its facilities. Accordingly, environmental, health or safety regulatory matters could result in significant unanticipated costs or liabilities.

Litigation: The Corporation is party to a number of claims and lawsuits arising out of the normal course of business with respect to commercial matters, including product liability, governmental regulation and other actions.

The Corporation is involved in a number of legal proceedings and claims with both private and governmental parties. These cover a wide range of matters, including, but not limited to: product liability; trade regulation; governmental regulatory proceedings; health, safety and environmental matters; employment; patents; contracts; taxes; and commercial disputes. With the exception of the possible effect of the asbestos-related liability described below, it is the opinion of the Corporation's management that the possibility is remote that the aggregate of all such claims and lawsuits will have a material adverse impact on the Corporation's consolidated financial statements.

The Corporation is and has been involved in a large number of asbestos-related suits filed primarily in state courts during the past four decades. At December 31, 2014, the Corporation's asbestos-related liability for pending and future claims was $513 million ($501 million at December 31, 2013) and the Corporation's receivable for insurance recoveries related to its asbestos liability was $10 million ($25 million at December 31, 2013). At December 31, 2014, the Corporation also had receivables of $69 million ($66 million at December 31, 2013) for insurance recoveries for defense and resolution costs. Management believes that it is reasonably possible that the cost of disposing of the Corporation's asbestos-related claims, including future defense costs, could have a material impact on the Corporation's consolidated financial statements.

Chemical Safety: Increased concerns regarding the safety of chemicals in commerce and their potential impact on the environment have resulted in more restrictive regulations from local, state and federal governments and could lead to new regulations.

Concerns regarding the safe use of chemicals in commerce and their potential impact on health and the environment reflect a growing trend in societal demands for increasing levels of product safety and environmental protection. These concerns could manifest themselves in stockholder proposals, preferred purchasing and continued pressure for more stringent regulatory intervention. These concerns could also influence public perceptions, the viability of the Corporation's products, the Corporation's reputation and the cost to comply with regulations. In addition, terrorist attacks and natural disasters have increased concerns about the security and safety of chemical production and distribution. These concerns could have a negative impact on the Corporation's results of operations.

Local, state and federal governments continue to propose new regulations related to the security of chemical plant locations and the transportation of hazardous chemicals, which would result in higher operating costs.

Operational Event: A significant operational event could negatively impact the Corporation's results of operations.

As a diversified chemical manufacturing company, the Corporation's operations, the transportation of products, cyber attacks or severe weather conditions and other natural phenomena (such as drought, hurricanes, earthquakes, tsunamis, floods, etc.) could result in an unplanned event that could be significant in scale and could negatively impact operations, neighbors or the public at large, which could have a negative impact on the Corporation's results of operations.

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Major hurricanes have caused significant disruption in UCC's operations on the U.S. Gulf Coast, logistics across the region, and the supply of certain raw materials, which had an adverse impact on volume and cost for some of UCC's products. Due to the Corporation's substantial presence on the U.S. Gulf Coast, similar severe weather conditions or other natural phenomena in the future could negatively affect UCC's results of operations.

Pension and Other Postretirement Benefits: Increased obligations and expenses related to the Corporation's defined benefit pension plans and other postretirement benefit plan could negatively affect UCC's financial condition and results of operations.

The Corporation has defined benefit pension plans and an other postretirement benefit plan (the “plans”) in the United States. The assets of the Corporation's funded plans are primarily invested in fixed income and equity securities of U.S. and foreign issuers. Changes in the market value of plan assets, investment returns, discount rates, mortality rates, the rate of increase in compensation levels, regulations and health care cost trends may affect the funded status of the Corporation's plans and could cause volatility in the net periodic benefit cost, future funding requirements of the plans and the funded status of the plans. A significant increase in the Corporation's obligations or future funding requirements could have a negative impact on the Corporation's results of operations and cash flows for a particular period and on the consolidated financial position of the Corporation.

Cyber Vulnerability: The risk of loss of the Corporation's intellectual property, trade secrets or other sensitive business information or disruption of operations could negatively impact the Corporation's financial results.

Cyber attacks or security breaches could compromise confidential, business critical information, cause a disruption in the Corporation's operations or harm the Corporation's reputation. The Corporation has attractive information assets, including intellectual property, trade secrets and other sensitive, business critical information. While the Corporation has a comprehensive cyber security program that is continuously reviewed, maintained and upgraded, a significant cyber attack could result in the loss of critical business information and/or could negatively impact operations, which could have a negative impact on the Corporation's financial results.

9

Union Carbide Corporation and Subsidiaries

PART I, Item 1B. Unresolved Staff Comments.

UNRESOLVED STAFF COMMENTS

None.

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Union Carbide Corporation and Subsidiaries

PART I, Item 2. Properties.

PROPERTIES

The Corporation operates eight manufacturing sites in three countries. The Corporation considers its properties to be in good operating condition and that its machinery and equipment have been well maintained. The following are the major production sites:

United States: Hahnville (St. Charles), Louisiana; Seadrift and Texas City, Texas.

All of UCC's plants are owned or leased, subject to certain easements of other persons that, in the opinion of management, do not substantially interfere with the continued use of such properties or materially affect their value.

A summary of property, classified by type, is contained in Note 6 to the Consolidated Financial Statements.

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Union Carbide Corporation and Subsidiaries

PART I, Item 3. Legal Proceedings.

LEGAL PROCEEDINGS

Asbestos-Related Matters

The Corporation 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 UCC sold in the past, alleged exposure to asbestos-containing products located on UCC's premises, and UCC's responsibility for asbestos suits filed against a former subsidiary, Amchem Products, Inc.

It is the opinion of UCC's management that it is reasonably possible that the cost of disposing of its asbestos-related claims, including future defense costs, could have a material impact on the Corporation's results of operations and cash flows for a particular period and on the consolidated financial position of the Corporation.

For additional information, see Asbestos-Related Matters in Management's Discussion and Analysis of Financial Condition and Results of Operations, and Note 13 to the Consolidated Financial Statements.

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Union Carbide Corporation and Subsidiaries

PART I, Item 4. Mine Safety Disclosures.

MINE SAFETY DISCLOSURES

Not applicable.

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Union Carbide Corporation and Subsidiaries

PART II, Item 5. Market for Registrant's Common Equity,

Related Stockholder Matters and Issuer Purchases of Equity Securities.

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

The Corporation is a wholly owned subsidiary of Dow; therefore, there is no public trading market for the Corporation's common stock.

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Union Carbide Corporation and Subsidiaries

PART II, Item 6. Selected Financial Data.

SELECTED FINANCIAL DATA

Omitted pursuant to General Instruction I of Form 10‑K.

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Union Carbide Corporation and Subsidiaries

PART II, Item 7. Management's Discussion and

Analysis of Financial Condition and Results of Operations.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Pursuant to General Instruction I of Form 10-K “Omission of Information by Certain Wholly-Owned Subsidiaries,” this section includes only management's narrative analysis of the results of operations for the year ended December 31, 2014, the most recent fiscal year, compared with the year ended December 31, 2013, the fiscal year immediately preceding it.

References below to “Dow” refer to The Dow Chemical Company and its consolidated subsidiaries, except as otherwise indicated by the context.

Dow conducts its worldwide operations through global businesses, and Union Carbide Corporation's (the “Corporation” or “UCC”) business activities comprise components of Dow's global operations rather than stand-alone operations. Because there are no separable reportable business segments for UCC and no detailed business information is provided to a chief operating decision maker regarding the Corporation's stand-alone operations, the Corporation's results are reported as a single operating segment.

Results of Operations

Total net sales for 2014 were $6,917 million, substantially unchanged when compared with net sales of $6,948 million in 2013. Net sales to related companies, principally to Dow, were $6,835 million for 2014, compared with $6,787 million for 2013, an increase of 1 percent. Selling prices to Dow are based on market prices for the related products.

Total net sales were flat as price gains were offset by volume declines. Average selling prices increased 5 percent in 2014 compared with 2013. Prices were up across most businesses with the largest gains in polyethylene, solvents, acrylic monomers, amines and vinyl acetate monomers. Volume was down 5 percent in 2014 compared with 2013. Volume gains in electrical and telecommunications and polyethylene were partially offset by volume declines in solvents, ethylene, acrolein and derivatives and vinyl acetate monomer, as well as the impact on sales from the divestiture of Dow's Polypropylene Licensing and Catalysts business in 2013.

Cost of sales were $5,922 million in 2014, down 5 percent from $6,214 million in 2013 due to lower raw material costs, improved operating rates, cost reduction initiatives and the impact of the divestiture of Dow's Polypropylene Licensing and Catalysts business. These declines were offset by increased spending for planned maintenance turnarounds and unplanned plant outages due to weather conditions earlier in 2014.

Research and development (“R&D”) expenses were $20 million in 2014, compared with $25 million in 2013. This decrease is a result of cost reduction initiatives as well as Dow's divestiture of the Polypropylene Licensing and Catalysts business in the fourth quarter of 2013.

In 2014, the Corporation recorded a pretax charge of $78 million related to an increase in the asbestos-related liability for pending and future claims. This adjustment was required due to the increase in mesothelioma claim activity compared to the previous forecast. See Note 13 to the Consolidated Financial Statements for additional information on asbestos-related matters.

In the fourth quarter of 2012, the Board of Directors approved a restructuring plan to improve the cost effectiveness of the Corporation's global operations. As a result, the Corporation recorded pretax restructuring charges totaling $71 million in the fourth quarter of 2012, which included asset write-downs and write-offs of $48 million, severance costs of $10 million and costs associated with exit or disposal activities of $13 million. The restructuring affected approximately 100 positions and resulted in a shutdown of certain manufacturing facilities. In the fourth quarter of 2014, the Corporation recorded a favorable adjustment to the reserve for contract cancellation fees of $3 million. In the first quarter of 2012, the Corporation recorded restructuring charges totaling $3 million related to a workforce reduction of approximately 20 employees. See Note 3 to the Consolidated Financial Statements for additional information on the Corporation's restructuring activities.

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Equity in earnings of nonconsolidated affiliates was $7 million in 2014, down from $82 million in 2013 primarily due to the change in ownership of Univation Technologies, LLC ("Univation"). In the third quarter of 2013, UCC declared a stock dividend to Dow of its 100 percent ownership in Union Carbide Subsidiary C, Inc., which included UCC's full ownership interest in Univation. For additional information on nonconsolidated affiliates, see Note 7 to the Consolidated Financial Statements.

Sundry income (expense) - net includes a variety of income and expense items such as dividend income, the gain or loss on foreign currency exchange, commissions, charges for management services provided by Dow, and gains and losses on sales of investments and assets. Sundry income (expense) - net for 2014 was net income of $14 million compared with net income of $308 million in 2013. The decrease in income compared with 2013 was primarily due to a gain of $368 million related to Dow's divestiture of the Polypropylene Licensing and Catalysts business partially offset by an impairment charge of $25 million in a related company investment in 2013. In 2014, Sundry income (expense) - net includes a gain of $66 million on the sale of UCC's railcar fleet to Dow partially offset by reclassification of a cumulative translation adjustment of $16 million primarily related to the liquidation of a foreign entity. See Notes 4, 12 and 17 to the Consolidated Financial Statements for additional information.

Interest income for 2014 was $11 million, compared with $12 million in 2013. Interest expense and amortization of debt discount for 2014 was $32 million, flat with 2013. Long-term debt was up 2 percent in 2014 compared with 2013. See Note 14 to the Consolidated Financial Statements for additional information.

The provision for income taxes was $304 million in 2014, which resulted in an overall effective tax rate of 34.1 percent. The tax rate for 2014 was unfavorably impacted by changes in valuation allowances on state income tax attributes, partially offset by favorable manufacturing deductions in the United States. This compares with a tax provision of $319 million in 2013, which resulted in an overall effective tax rate of 29.9 percent. In 2013, the tax rate was favorably impacted by changes in the valuation allowances in the United States on state income tax attributes, audit settlements and remeasurement of tax positions. The 2013 tax rate was negatively impacted by the reversal of uncertain tax positions resulting from an unfavorable court ruling in the first quarter of 2013. The underlying factors affecting UCC's overall effective tax rates are summarized in Note 18 to the Consolidated Financial Statements.

The Corporation reported net income of $587 million in 2014, compared with net income of $748 million for 2013. Net income declined in 2014 due to an increase in the asbestos-related liability for pending and future claims and the decrease in equity earnings as a result of UCC declaring a stock dividend to Dow in 2013 for its ownership interest in Univation, which was partially offset by improved raw material costs and a gain on the sale of UCC's railcar fleet to Dow. Net income for 2013 included the gain on the sale of Dow's Polypropylene Licensing and Catalysts business in the fourth quarter of 2013. See Notes 4, 12, 13 and 17 to the Consolidated Financial Statements for additional information.

17

OTHER MATTERS

Recent Accounting Guidance

See Note 2 to the Consolidated Financial Statements for a summary of recent accounting guidance.

Critical Accounting Policies

The preparation of financial statements and related disclosures in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make judgments, assumptions and estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. Note 1 to the Consolidated Financial Statements describes the significant accounting policies and methods used in preparation of the consolidated financial statements. Following are the Corporation's critical accounting policies impacted by judgments, assumptions and estimates:

Litigation

The Corporation is subject to legal proceedings and claims arising out of the normal course of business. The Corporation routinely assesses the likelihood of any adverse judgments or outcomes to these matters, as well as ranges of probable losses. A determination of the amount of the reserves required, if any, for these contingencies is made after thoughtful analysis of each known claim. The Corporation has an active risk management program consisting of numerous insurance policies secured from many carriers. These policies provide coverage that is utilized to minimize the financial impact, if any, of the legal proceedings. The required reserves may change in the future due to new developments in each matter. For further discussion, see Note 13 to the Consolidated Financial Statements.

Asbestos-Related Matters

The Corporation 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 UCC sold in the past, alleged exposure to asbestos-containing products located on UCC's premises, and UCC's responsibility for asbestos suits filed against a former subsidiary, Amchem Products, Inc. ("Amchem"). Each year, Analysis, Research and Planning Corporation ("ARPC") performs a review for UCC based upon historical asbestos claims and resolution activity. UCC compares current asbestos claim and resolution activity to the results of the most recent ARPC study at each balance sheet date to determine whether the asbestos-related liability continues to be appropriate.

It is the opinion of UCC's management that it is reasonably possible that the cost of disposing of its asbestos-related claims, including future defense costs, could have a material impact on the Corporation's results of operations and cash flows for a particular period and on the consolidated financial position of the Corporation.

For additional information, see Part I, Item 3. Legal Proceedings; Asbestos-Related Matters in Management's Discussion and Analysis of Financial Condition and Results of Operations; and Note 13 to the Consolidated Financial Statements.

Environmental Matters

The Corporation determines the costs of environmental remediation of its facilities and formerly owned facilities based on evaluations of current law and existing technologies. Inherent uncertainties exist in such evaluations primarily due to unknown environmental conditions, changing governmental regulations and legal standards regarding liability and emerging remediation technologies. The recorded liabilities are adjusted periodically as remediation efforts progress or as additional technical or legal information becomes available. In the case of landfills and other active waste management facilities, UCC recognizes the costs over the useful life of the facility. At December 31, 2014, the Corporation had accrued obligations of $132 million for probable environmental remediation and restoration costs, including $22 million for the remediation of Superfund sites. This is management's best estimate of the costs for remediation and restoration with respect to environmental matters for which the Corporation 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. For further discussion, see Environmental Matters in Notes 1 and 13 to the Consolidated Financial Statements.

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Pension Plans and Other Postretirement Benefits

The amounts recognized in the consolidated financial statements related to pension and other postretirement benefits are determined from actuarial valuations. Inherent in these valuations are assumptions including expected return on plan assets, discount rates at which the liabilities could have been settled at December 31, 2014, rate of increase in future compensation levels, mortality rates and health care cost trend rates. These assumptions are updated annually and are disclosed in Note 15 to the Consolidated Financial Statements. In accordance with U.S. GAAP, actual results that differ from the assumptions are accumulated and amortized over future periods and therefore affect expense recognized and obligations recorded in future periods.

The Corporation determines the expected long-term rate of return on plan assets by performing a detailed analysis of key economic and market factors driving historical returns for each asset class and formulating a projected return based on factors in the current environment. Factors considered include, but are not limited to, inflation, real economic growth, interest rate yield, interest rate spreads, and other valuation measures and market metrics. The expected long-term rate of return for each asset class is then weighted based on the strategic asset allocation approved by the governing body for each plan. The Corporation's historical experience with the pension fund asset performance is also considered. The expected long-term rate of return is an assumption and not what is expected to be earned in any one particular year. The weighted-average long-term rate of return assumption used for determining net periodic pension expense for 2014 was 6.80 percent. This assumption was also used for determining 2015 net periodic pension expense. Future actual pension expense will depend on future investment performance, changes in future discount rates and various other factors related to the population of participants in the Corporation's pension plans.

The discount rates utilized to measure the pension and other postretirement benefit obligations are based on the yield on high-quality fixed income investments at the measurement date. Future expected actuarially determined cash flows of the plan are matched against the Towers Watson RATE:Link yield curve (based on 60^th to 90^th percentile bond yields) to arrive at a single discount rate by plan. The discount rate was 3.90 percent at December 31, 2014 and 4.75 percent at December 31, 2013.

The value of the qualified plan assets totaled $3.5 billion at December 31, 2014, a decrease from $3.6 billion at December 31, 2013. The underfunded status of the qualified plan increased by $387 million at December 31, 2014, compared with December 31, 2013. The increase was primarily due to lower discount rates and updated mortality tables. For 2015, the Corporation does not expect to make cash contributions to its pension and other postretirement benefit plans.

The assumption for the long-term rate of increase in compensation levels was 4.50 percent, consistent with 2013. Since 2002, the Corporation has used a generational mortality table to determine the duration of its pension and other postretirement obligations. On October 27, 2014, the Society of Actuaries ("SOA") published updated mortality tables and mortality improvement scales (generational mortality tables), which reflect increased life expectancy. Based on an evaluation of the mortality experience of the Corporation's U.S. pension plans and the SOA's tables, the Corporation adopted updated generational mortality tables for purposes of measuring U.S. pension and other postretirement obligations at year-end.

The Corporation bases the determination of pension expense on a market-related valuation of plan assets that reduces year-to-year volatility. This market-related valuation recognizes investment gains or losses over a five-year period from the year in which they occur. Investment gains or losses for this purpose represent the difference between the expected return calculated using the market-related value of plan assets and the actual return based on the market value of plan assets. Since the market-related value of plan assets recognizes gains or losses over a five-year period, the future value of plan assets will be impacted when previously deferred gains or losses are recorded. Over the life of the plan, both gains and losses have been recognized and amortized. At December 31, 2014, $64 million of net gains remain to be recognized in the calculation of the market-related value of plan assets. These net gains will result in decreases in future pension expense as they are recognized in the market-related value of assets.

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The net increase in the market-related value of assets due to the recognition of prior gains and losses is presented in the following table:

Net Increase in Market-Related Asset Value due to Recognition of Prior Gains In millions
2015	$	20
2016	24
2017	4
2018	16
Total	$	64

Based on the 2015 pension assumptions and changes in the market-related value of assets due to the recognition of prior asset gains, the Corporation expects net periodic benefit costs to increase approximately $10 million for pension and other postretirement benefits in 2015 compared with 2014. The increase in net periodic benefit cost is primarily due to lower discount rates, which were partially offset by the Corporation's implementation of an Employee Group Waiver Plan ("EGWP"). For additional information on the EGWP, see Note 15 to the Consolidated Financial Statements.

A 25 basis point adjustment in the long-term return on assets assumption would change total pension expense for 2015 by $8 million. A 25 basis point adjustment in the discount rate assumption would change the total pension expense for 2015 by $1 million.

Income Taxes

Deferred tax assets and liabilities are determined based on temporary differences between the financial reporting and tax bases of assets and liabilities, applying enacted tax rates expected to be in effect for the year in which the differences are expected to reverse. Based on the evaluation of available evidence, both positive and negative, the Corporation recognizes future tax benefits, such as net operating loss carryforwards and tax credit carryforwards, to the extent that realizing these benefits is considered more likely than not.

At December 31, 2014, the Corporation had a net deferred tax asset balance of $544 million, after valuation allowances of $53 million. In evaluating the ability to realize the deferred tax assets, the Corporation relies on, in order of increasing subjectivity, taxable income in prior carryback years, the future reversals of existing taxable temporary differences, tax planning strategies and forecasted taxable income using historical and projected future operating results.

At December 31, 2014, the Corporation had deferred tax assets for tax loss and tax credit carryforwards of $82 million, of which $41 million is subject to expiration in the years 2015 through 2019. In order to realize these deferred tax assets for tax loss and tax credit carryforwards, the Corporation needs taxable income of approximately $1,035 million across multiple jurisdictions. The taxable income needed to realize the deferred tax assets for tax loss and tax credit carryforwards that are subject to expiration between 2015 through 2019 is $530 million.

The Corporation recognizes the financial statement effects of an uncertain tax position when it is more likely than not, based on technical merits, that the position will be sustained. At December 31, 2014, the Corporation had a liability for uncertain tax positions of $1 million.

The Corporation accrues for non-income tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated. At December 31, 2014, the Corporation had no non-income tax contingency reserve. For additional information, see Note 18 to the Consolidated Financial Statements.

Environmental Matters

Environmental Policies

The Corporation is committed to world-class environmental, health and safety (“EH&S”) performance, as demonstrated by a long-standing commitment to Responsible Care®, as well as a strong commitment to achieve the Corporation's 2015 Sustainability Goals - goals that set the standard for sustainability in the chemical industry by focusing on improvements in UCC's local corporate citizenship and product stewardship, and by actively pursuing methods to reduce the Corporation's environmental impact.

The EH&S management system (“EMS”) defines the “who, what, when and how” needed for the businesses to achieve the policies, requirements, performance objectives, leadership expectations and public commitments. EMS is also designed to

20

minimize the long-term cost of environmental protection and to comply with applicable laws and regulations. To ensure effective utilization, EMS is integrated into a company-wide management system for EH&S, Operations, Quality and Human Resources, including implementation of the global EH&S Work Process to improve EH&S performance and to ensure ongoing compliance worldwide.

UCC first works to eliminate or minimize the generation of waste and emissions at the source through research, process design, plant operations and maintenance. Next, UCC finds ways to reuse and recycle materials. Finally, unusable or non-recyclable hazardous waste is treated before disposal to eliminate or reduce the hazardous nature and volume of the waste. Treatment may include destruction by chemical, physical, biological or thermal means. Disposal of waste materials in landfills is considered only after all other options have been thoroughly evaluated. UCC has specific requirements for waste that is transferred to non-UCC facilities, including the periodic auditing of these facilities.

Chemical Security

Public and political attention continues to be placed on the protection of U.S. critical infrastructure, including the chemical industry, from security threats. Terrorist attacks and natural disasters have increased concern about the security and safety of chemical production and distribution. The focus on security is not new to UCC. UCC continues to improve its security plans, placing emphasis on the safety of UCC communities and people by being prepared to meet risks at any level and to address both internal and external identifiable risks. UCC's security plans are also developed to avert interruptions of normal business operations, which could have a material impact on the Corporation's results of operations, liquidity and financial condition.

UCC is a Responsible Care® company and adheres to the Responsible Care® Security Code, which requires that all aspects of security - including facility, transportation, and cyberspace - be assessed and gaps addressed. Through global implementation of the Security Code, including voluntary security enhancements and upgrades made since 2002, UCC has permanently heightened the level of security - not just in the United States, but worldwide. UCC implemented the Community Awareness and Emergency Response ("CAER") initiative at its manufacturing sites around the world and the communities near those sites. The CAER initiative includes open communication, integrated planning and community drills between industry and the surrounding communities. The CAER initiative continues to be a critical part of UCC's global implementation of Responsible Care®. In addition, UCC uses a risk-based approach employing the U.S. Government's Sandia National Labs methodology to repeatedly assess the risks to sites, systems and processes. UCC has expanded its comprehensive Distribution Risk Review process that had been in place for decades to address potential threats in all modes of transportation across its supply chain. To reduce vulnerabilities, UCC maintains security measures that meet or exceed regulatory and industry security standards in all areas in which UCC operates. Assessment and improvement costs are not considered material to the Corporation's consolidated financial statements.

UCC continually works to strengthen partnerships with local responders, law enforcement and security agencies, and to enhance confidence in the integrity of its security and risk management program as well as strengthen its preparedness and response capabilities. UCC also works closely with its supply chain partners and strives to educate lawmakers, regulators and communities about its resolve and actions to date which are mitigating security and crisis threats.

Climate Change

Climate change matters for UCC are driven by changes in regulatory matters and physical climate parameters.

Regulatory Matters

Regulatory matters include cap and trade schemes, increased greenhouse gas ("GHG") limits, and taxes on GHG emissions, fuel and energy. The potential implications of each of these matters are all very similar, including increased cost of purchased energy, additional capital costs for installation or modification of GHG emitting equipment, and additional costs associated directly with GHG emissions (such as cap and trade systems or carbon taxes), which are primarily related to energy use. It is difficult to estimate the potential impact of these regulatory matters on energy prices.

Reducing UCC's overall energy usage and GHG emissions through new and unfolding projects will decrease the potential impact of these regulatory matters. The Corporation has not experienced any material impact related to regulated GHG emissions.

Physical Climate Parameters

Many scientific academies throughout the world have concluded that it is very likely that human activities are contributing to global warming. At this point, it is difficult to predict and assess the probability and opportunity of a global warming trend on UCC specifically. Preparedness plans are developed that detail actions needed in the event of severe weather. These measures have historically been in place and these activities and associated costs are driven

21

by normal operational preparedness. UCC continues to study the long-term implications of changing climate parameters or water availability, plant siting issues, and impacts and opportunities for products.

The Corporation continues to elevate its internal focus and external positions to focus on the root cause of GHG emissions, including the sustainable use of energy. Through corporate energy efficiency programs and focused GHG management efforts, the Corporation has and is continuing to reduce its GHG emissions footprint.

Environmental Remediation

UCC accrues the costs of remediation of its facilities and formerly owned facilities based on current law and existing technologies. The nature of such remediation includes, for example, the management of soil and groundwater contamination and the closure of contaminated landfills and other waste management facilities. In the case of landfills and other active waste management facilities, UCC recognizes the costs over the useful life of the facility. The policies adopted to properly reflect the monetary impacts of environmental matters are discussed in Note 1 to the Consolidated Financial Statements. To assess the impact on the consolidated financial statements, environmental experts review currently available facts to evaluate the probability and scope of potential liabilities. Inherent uncertainties exist in such evaluations primarily due to unknown environmental conditions, changing governmental regulations and legal standards regarding liability, and emerging remediation technologies. These liabilities are adjusted periodically as remediation efforts progress or as additional technical or legal information becomes available. The Corporation had an accrued liability of $110 million at December 31, 2014 and $103 million at December 31, 2013, related to the remediation of current or former UCC-owned sites.

In addition to current and former UCC-owned sites, under the Federal Comprehensive Environmental Response, Compensation and Liability Act and equivalent state laws (hereafter referred to collectively as “Superfund Law”), UCC is liable for remediation of other hazardous waste sites where UCC allegedly disposed of, or arranged for the treatment or disposal of, hazardous substances. Because Superfund Law imposes joint and several liability upon each party at a site, UCC has evaluated its potential liability in light of the number of other companies that also have been named potentially responsible parties (“PRPs”) at each site, the estimated apportionment of costs among all PRPs, and the financial ability and commitment of each to pay its expected share. Management's estimate of the Corporation's remaining liability for the remediation of Superfund sites was $22 million at December 31, 2014 and $23 million at December 31, 2013, which has been accrued, although the ultimate cost with respect to these sites could exceed that amount. The Corporation has not recorded any third-party recovery related to these sites as a receivable.

Information regarding environmental sites is provided below:

Environmental Sites	UCC-owned Sites (1)			Superfund Sites (2)
	2014	2013		2014		2013
Number of sites at January 1	28	31		64		66
Sites added during year	—	1		1		1
Sites closed during year	—	(4	)	(1	)	(3	)
Number of sites at December 31	28	28		64		64

(1) UCC-owned sites are sites currently or formerly owned by UCC, where remediation obligations are imposed (in the United States) by the Resource Conservation Recovery Act or analogous state law.

(2) Superfund sites are sites, including sites not owned by UCC, where remediation obligations are imposed by Superfund Law.

In total, the Corporation's accrued liability for probable environmental remediation and restoration costs was $132 million at December 31, 2014, compared with $126 million at December 31, 2013. This is management's best estimate of the costs for remediation and restoration with respect to environmental matters for which the Corporation 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 Corporation's results of operations, financial condition and cash flows. It is the opinion of the Corporation's management, however, that the possibility is remote that costs in excess of the range disclosed will have a material impact on the Corporation's results of operations, financial condition and cash flows.

The amounts charged to income on a pretax basis related to environmental remediation totaled $62 million in 2014 and $80 million in 2013. The amounts charged to income on a pretax basis related to operating the Corporation's pollution abatement facilities totaled $91 million in 2014 and $87 million in 2013. Capital expenditures for environmental protection were $6 million in 2014 and $2 million in 2013.

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Asbestos-Related Matters

The Corporation 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 UCC sold in the past, alleged exposure to asbestos-containing products located on UCC's premises, and UCC's responsibility for asbestos suits filed against a former subsidiary, Amchem Products, Inc. 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 UCC's products.

It is the opinion of UCC's management that it is reasonably possible that the cost of disposing of its asbestos-related claims, including future defense costs, could have a material impact on the Corporation's results of operations and cash flows for a particular period and on the consolidated financial position of the Corporation.

The table below provides information regarding asbestos-related claims filed against the Corporation and Amchem based on criteria developed by UCC and its external consultants:

	2014		2013		2012
Claims unresolved at January 1	29,005		33,449		53,225
Claims filed	8,857		12,069		9,627
Claims settled, dismissed or otherwise resolved	(11,746	)	(16,513	)	(29,403	)
Claims unresolved at December 31	26,116		29,005		33,449
Claimants with claims against both UCC and Amchem	(8,209	)	(8,331	)	(9,542	)
Individual claimants at December 31	17,907		20,674		23,907

Plaintiffs' lawyers often sue numerous defendants in individual lawsuits or on behalf of numerous claimants. As a result, the damages alleged are not expressly identified as to UCC, Amchem or any other particular defendant, even when specific damages are alleged with respect to a specific disease or injury. In fact, there are no personal injury cases in which only the Corporation and/or Amchem are the sole named defendants. For these reasons and based upon the Corporation's litigation and settlement experience, the Corporation does not consider the damages alleged against it and Amchem to be a meaningful factor in its determination of any potential asbestos-related liability.

For additional information, see Part I, Item 3. Legal Proceedings and Asbestos-Related Matters in Note 13 to the Consolidated Financial Statements.

Debt Covenants and Default Provisions

The Corporation's outstanding public debt has been issued under indentures which contain, among other provisions, covenants that the Corporation must comply with while the underlying notes are outstanding. Such covenants are typically based on the Corporation's size and financial position and include, subject to the exceptions and qualifications contained in the indentures, obligations not to (i) allow liens on principal U.S. manufacturing facilities, (ii) enter into sale and lease-back transactions with respect to principal U.S. manufacturing facilities, or (iii) merge into or consolidate with any other entity or sell or convey all or substantially all of its assets. Failure of the Corporation to comply with any of these covenants could, after the passage of any applicable grace period, result in a default under the applicable indenture which would allow the note holders to accelerate the due date of the outstanding principal and accrued interest on the subject notes. Management believes the Corporation was in compliance with the covenants referred to above at December 31, 2014.

23

Union Carbide Corporation and Subsidiaries

PART II, Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

UCC's business operations give rise to market risk exposure due to changes in foreign exchange rates and interest rates. To manage such risks effectively, the Corporation can enter into hedging transactions, pursuant to established guidelines and policies that enable it to mitigate the adverse effects of financial market risk. The Corporation does not hold derivative financial instruments for trading purposes.

As a result of investments, production facilities and other operations on a global basis, the Corporation has assets, liabilities and cash flows in currencies other than the U.S. dollar. The primary objective of the Corporation's foreign exchange risk management is to optimize the U.S. dollar value of net assets and cash flows, keeping the adverse impact of currency movements to a minimum. To achieve this objective, the Corporation will hedge, when appropriate, on a net exposure basis using foreign currency forward contracts, over-the-counter option contracts, cross-currency swaps and nonderivative instruments in foreign currencies. Main exposures are related to assets, liabilities and cash flows denominated in the currencies of Europe, Asia Pacific and Canada.

The main objective of interest rate risk management is to reduce the total funding cost to the Corporation and to alter the interest rate exposure to the desired risk profile. The Corporation's primary exposure is to the U.S. dollar yield curve. UCC will use interest rate swaps and “swaptions,” when appropriate, to accomplish this objective.

UCC uses value at risk (“VAR”), stress testing and scenario analysis for risk measurement and control purposes. VAR estimates the maximum potential loss in fair market values given a certain move in prices over a certain period of time, using specified confidence levels. In 2014, the Corporation changed the underlying methodology used to calculate VAR from a historical simulation model to a variance/covariance model after implementing a new market risk system. This new approach will provide greater insight and transparency into the contributors of the total portfolio VAR for use in the qualitative summary and will respond to risk in a more systematic fashion. This model uses a 97.5 percent confidence level and includes at least one year of historical data. The 2014 and 2013 year-end and average daily VAR for the aggregate of all positions are shown below:

Total Daily VAR at December 31	2014				2013 (1)
In millions	Year-end		Average		Year-end		Average
Interest rate	$	4	$	4	$	6	$	5

(1) 2013 VAR values reflect updated calculation using the variance/covariance model.

The decrease in interest rate VAR at year end is primarily due to decreased interest rate volatility.

24

Union Carbide Corporation and Subsidiaries

PART II, Item 8. Financial Statements and Supplementary Data.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholder of

Union Carbide Corporation

We have audited the accompanying consolidated balance sheets of Union Carbide Corporation and subsidiaries (the “Corporation”) as of December 31, 2014 and 2013, and the related consolidated statements of operations, comprehensive income (loss), equity and cash flows for each of the three years in the period ended December 31, 2014. These financial statements are the responsibility of the Corporation's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Corporation is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of Union Carbide Corporation and subsidiaries at December 31, 2014 and 2013, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2014, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Deloitte & Touche LLP

Midland, Michigan

February 13, 2015

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Union Carbide Corporation and Subsidiaries

Consolidated Statements of Operations

(In millions) For the years ended December 31	2014			2013		2012
Net trade sales	$	82		$	161	$	177
Net sales to related companies	6,835			6,787		6,070
Total Net Sales	6,917			6,948		6,247
Cost of sales	5,922			6,214		6,088
Research and development expenses	20			25		35
Selling, general and administrative expenses	9			12		10
Asbestos-related charge	78			—		—
Restructuring charges (credits)	(3		)	—		74
Equity in earnings of nonconsolidated affiliates	7			82		59
Sundry income (expense) - net	14			308		(182		)
Interest income	11			12		14
Interest expense and amortization of debt discount	32			32		28
Income (Loss) Before Income Taxes	891			1,067		(97		)
Provision for income taxes	304			319		17
Net Income (Loss) Attributable to Union Carbide Corporation	$	587		$	748	$	(114	)

See Notes to the Consolidated Financial Statements.

26

Union Carbide Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income (Loss)

(In millions) For years ended December 31	2014			2013			2012
Net Income (Loss) Attributable to Union Carbide Corporation	$	587		$	748		$	(114	)
Other Comprehensive Income (Loss), Net of Tax
Cumulative translation adjustments	15			(22		)	(4		)
Pension and other postretirement benefit plan adjustments	(213		)	322			(209		)
Total other comprehensive income (loss)	(198		)	300			(213		)
Comprehensive Income (Loss) Attributable to Union Carbide Corporation	$	389		$	1,048		$	(327	)

See Notes to the Consolidated Financial Statements.

27

Union Carbide Corporation and Subsidiaries

Consolidated Balance Sheets

(In millions) At December 31	2014			2013
Assets
Current Assets
Cash and cash equivalents	$	23		$	33
Accounts receivable:
Trade (net of allowance for doubtful receivables 2014: $-; 2013: $-)	29			25
Related companies	1,285			390
Other	67			40
Income taxes receivable	476			40
Notes receivable from related companies	1,292			2,404
Inventories	378			404
Deferred income taxes and other current assets	139			101
Total current assets	3,689			3,437
Investments
Investments in related companies	813			823
Investments in nonconsolidated affiliates	13			6
Other investments	8			9
Noncurrent receivables	44			30
Noncurrent receivables from related companies	131			166
Total investments	1,009			1,034
Property
Property	6,831			7,079
Less accumulated depreciation	5,679			5,840
Net property	1,152			1,239
Other Assets
Intangible assets (net of accumulated amortization 2014: $73; 2013: $72)	15			10
Deferred income tax assets - noncurrent	441			692
Asbestos-related insurance receivables - noncurrent	62			86
Deferred charges and other assets	45			51
Total other assets	563			839
Total Assets	$	6,413		$	6,549
Liabilities and Equity
Current Liabilities
Notes payable - related companies	$	43		$	34
Long-term debt due within one year	1			—
Accounts payable:
Trade	248			215
Related companies	872			398
Other	17			21
Income taxes payable	20			213
Asbestos-related liabilities - current	105			91
Accrued and other current liabilities	192			182
Total current liabilities	1,498			1,154
Long-Term Debt	481			471
Other Noncurrent Liabilities
Pension and other postretirement benefits - noncurrent	1,051			684
Asbestos-related liabilities - noncurrent	438			434
Other noncurrent obligations	136			95
Total other noncurrent liabilities	1,625			1,213
Stockholder's Equity
Common stock (authorized and issued: 1,000 shares of $0.01 par value each)	—			—
Additional paid-in capital	312			312
Retained earnings	3,740			4,442
Accumulated other comprehensive loss	(1,243		)	(1,045		)
Union Carbide Corporation's stockholder's equity	2,809			3,709
Noncontrolling interests	—			2
Total equity	2,809			3,711
Total Liabilities and Equity	$	6,413		$	6,549

See Notes to the Consolidated Financial Statements.

28

Union Carbide Corporation and Subsidiaries

Consolidated Statements of Cash Flows

(In millions) For the years ended December 31	2014			2013			2012
Operating Activities
Net Income (Loss) Attributable to Union Carbide Corporation	$	587		$	748		$	(114	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	202			222			235
Provision (credit) for deferred income tax	349			(29		)	12
Earnings of nonconsolidated affiliates less than (in excess of) dividends received	(7		)	(21		)	13
Net gains on sales of assets	(70		)	(368		)	(4		)
Asbestos-related charge	78			—			—
Restructuring charges (credits)	(3		)	—			74
Impairment of investment in related company	—			25			131
Pension contributions	(2		)	(158		)	(158		)
Other, net	—			2			(1		)
Changes in assets and liabilities, net of effects of divested companies:
Accounts and notes receivable	(19		)	4			(6		)
Related company receivables	217			(135		)	970
Inventories	27			(3		)	(213		)
Accounts payable	28			(80		)	25
Related company payables	484			(32		)	54
Other assets and liabilities	(622		)	105			82
Cash provided by operating activities	1,249			280			1,100
Investing Activities
Capital expenditures	(166		)	(121		)	(241		)
Purchase of related company receivables	—			—			(8		)
Change in noncurrent receivable from related company	35			23			(53		)
Proceeds from sale of ownership interest in nonconsolidated affiliate	—			13			—
Proceeds from sales of assets	153			411			7
Purchases of investments	—			—			(1		)
Cash provided by (used in) investing activities	22			326			(296		)
Financing Activities
Dividends paid to stockholder	(1,280		)	(591		)	(775		)
Payments on long-term debt	(1		)	—			(37		)
Cash used in financing activities	(1,281		)	(591		)	(812		)
Summary
Increase (decrease) in cash and cash equivalents	(10		)	15			(8		)
Cash and cash equivalents at beginning of year	33			18			26
Cash and cash equivalents at end of year	$	23		$	33		$	18

See Notes to the Consolidated Financial Statements.

29

Union Carbide Corporation and Subsidiaries

Consolidated Statements of Equity

(In millions) For the years ended December 31	2014			2013			2012
Common Stock
Balance at beginning and end of year	$	—		$	—		$	—
Additional Paid-in Capital
Balance at beginning and end of year	312			312			312
Retained Earnings
Balance at beginning of year	4,442			4,355			5,253
Net Income (Loss) Attributable to Union Carbide Corporation	587			748			(114		)
Dividends declared	(1,289		)	(661		)	(784		)
Balance at end of year	3,740			4,442			4,355
Accumulated Other Comprehensive Loss, Net of Tax
Balance at beginning of year	(1,045		)	(1,345		)	(1,132		)
Other comprehensive income (loss)	(198		)	300			(213		)
Balance at end of year	(1,243		)	(1,045		)	(1,345		)
Union Carbide Corporation's Stockholder's Equity	2,809			3,709			3,322
Noncontrolling interests	—			2			2
Total Equity	$	2,809		$	3,711		$	3,324

See Notes to the Consolidated Financial Statements.

30

Union Carbide Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

Table of Contents

Note			Page
	1	Summary of Significant Accounting Policies	31
	2	Recent Accounting Guidance	34
	3	Restructuring	34
	4	Divestitures	36
	5	Inventories	36
	6	Property	37
	7	Nonconsolidated Affiliates	37
	8	Investments in Related Companies	38
	9	Intangible Assets	38
	10	Financial Instruments	39
	11	Fair Value Measurements	40
	12	Supplementary Information	41
	13	Commitments and Contingent Liabilities	41
	14	Notes Payable and Long-term Debt	45
	15	Pension Plans and Other Postretirement Benefits	45
	16	Leased Property	52
	17	Related Party Transactions	52
	18	Income Taxes	54
	19	Accumulated Other Comprehensive Loss	57
	20	Business and Geographic Areas	57

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation and Basis of Presentation

Except as otherwise indicated by the context, the terms “Corporation” and “UCC” as used herein mean Union Carbide Corporation and its consolidated subsidiaries. The accompanying consolidated financial statements of the Corporation were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the assets, liabilities, revenues and expenses of all majority-owned subsidiaries over which the Corporation exercises control and, when applicable, entities for which the Corporation has a controlling financial interest. Intercompany transactions and balances are eliminated in consolidation. Investments in nonconsolidated affiliates (20-50 percent owned companies, joint ventures and partnerships) are accounted for using the equity method.

The Corporation is a wholly owned subsidiary of The Dow Chemical Company (“Dow”). In accordance with the accounting requirements for wholly owned subsidiaries, the presentation of earnings per share is not required and therefore is not provided.

Dow conducts its worldwide operations through global businesses, and the Corporation's business activities comprise components of Dow's global operations rather than stand-alone operations. The Corporation sells substantially all of its products to Dow at market-based prices, in accordance with Dow's long-standing intercompany pricing policy, in order to simplify the customer interface process. Because there are no separable reportable business segments for UCC and no detailed business information is provided to a chief operating decision maker regarding the Corporation's stand-alone operations, the Corporation's results are reported as a single operating segment.

Related Companies

Transactions with the Corporation's parent company, Dow, or other Dow subsidiaries have been reflected as related company transactions in the consolidated financial statements.

Use of Estimates in Financial Statement Preparation

The preparation of financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The Corporation's consolidated

31

financial statements include amounts that are based on management's best estimates and judgments. Actual results could differ from those estimates.

Foreign Currency Translation

While the Corporation's consolidated subsidiaries are primarily based in the United States, the Corporation has small subsidiaries in Asia Pacific. For those subsidiaries, the local currency has been primarily used as the functional currency. Translation gains and losses of those operations that use local currency as the functional currency are included in the consolidated balance sheets in "Accumulated other comprehensive loss" ("AOCL"). Where the U.S. dollar is used as the functional currency, foreign currency gains and losses are reflected in income.

Environmental Matters

Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated based on current law and existing technologies. These accruals are adjusted periodically as assessment and remediation efforts progress or as additional technical or legal information becomes available. Accruals for environmental liabilities are included in the consolidated balance sheets in “Accrued and other current liabilities” and “Other noncurrent obligations” at undiscounted amounts. Accruals for related insurance or other third-party recoveries for environmental liabilities are recorded when it is probable that a recovery will be realized and are included in the consolidated balance sheets as “Accounts receivable - Other.”

Environmental costs are capitalized if the costs extend the life of the property, increase its capacity, and/or mitigate or prevent contamination from future operations. Environmental costs are also capitalized in recognition of legal asset retirement obligations resulting from the acquisition, construction and/or normal operation of a long-lived asset. Costs related to environmental contamination treatment and cleanup are charged to expense. Estimated future incremental operations, maintenance and management costs directly related to remediation are accrued when such costs are probable and reasonably estimable.

Cash and Cash Equivalents

Cash and cash equivalents include time deposits and investments with maturities of three months or less at the time of purchase.

Financial Instruments

The Corporation calculates the fair value of financial instruments using quoted market prices whenever available. When quoted market prices are not available for various types of financial instruments (such as forwards, options and swaps), the Corporation uses standard pricing models with market-based inputs that take into account the present value of estimated future cash flows.

Inventories

Inventories are stated at the lower of cost or market. The method of determining cost for each subsidiary varies among last-in, first-out (“LIFO”); first-in, first-out (“FIFO”); and average cost, and is used consistently from year to year.

The Corporation routinely exchanges and swaps raw materials and finished goods with other companies to reduce delivery time, freight and other transportation costs. These transactions are treated as non-monetary exchanges and are valued at cost.

Property

Land, buildings and equipment, including property under capital lease agreements, are carried at cost less accumulated depreciation. Depreciation is based on the estimated service lives of depreciable assets and is calculated using the straight-line method. Fully depreciated assets are retained in property and accumulated depreciation accounts until they are removed from service. In the case of disposals, assets and related accumulated depreciation are removed from the accounts, and the net amounts, less proceeds from disposal, are included in income.

Impairment and Disposal of Long-Lived Assets

The Corporation evaluates long-lived assets and certain identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When undiscounted future cash flows are not expected to be sufficient to recover an asset's carrying amount, the asset is written down to its fair value based on bids received from third parties or a discounted cash flow analysis based on market participant assumptions.

Long-lived assets to be disposed of by sale, if material, are classified as held for sale and reported at the lower of carrying amount or fair value less cost to sell, and depreciation is ceased. Long-lived assets to be disposed of other than by sale are classified as held and used until they are disposed of and reported at the lower of carrying amount or fair value, and depreciation is recognized over the remaining useful life of the assets.

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Asset Retirement Obligations

The Corporation records asset retirement obligations as incurred and reasonably estimable, including obligations for which the timing and/or method of settlement are conditional on a future event that may or may not be within the control of the Corporation. The fair values of obligations are recorded as liabilities on a discounted basis and are accreted over time for the change in present value. Costs associated with the liabilities are capitalized and amortized over the estimated remaining useful life of the asset, generally for periods of 10 years or less.

Investments in Related Companies

Investments in related companies consist of the Corporation's ownership interests in Dow subsidiaries located in North America and Latin America. The Corporation accounts for these investments using the cost method as it does not have significant influence over the operating and financial policies of these related companies.

Investments

Investments in debt securities are classified as available-for-sale and reported at fair value with unrealized gains and losses recorded in AOCL. The cost of investments sold is determined by specific identification. The Corporation routinely reviews available-for-sale securities for other-than-temporary declines in fair value below the cost basis, and when events or changes in circumstances indicate the carrying value of an asset may not be recoverable, the security is written down to fair value establishing a new cost basis.

Revenue

Substantially all of the Corporation's revenues are generated by sales to Dow. Approximately 99 percent of the Corporation's sales are related to sales of product (97 percent in 2013 and 96 percent in 2012); the remaining 1 percent is related to the licensing of patents and technology (3 percent in 2013 and 4 percent in 2012).

Revenue for product sales to related companies is recognized as risk and title to the product transfer to the related company, which occurs either at the time production is complete or free on board (“FOB”) UCC's manufacturing facility, in accordance with the sales agreement between the Corporation and Dow.

Revenue for product sales is recognized as risk and title to the product transfer to the customer, which for trade sales, usually occurs at the time shipment is made. As such, title to the product passes when the product is delivered to the freight carrier. UCC's standard terms of delivery are included in its contracts of sale, order confirmation documents, and invoices. Freight costs and any directly related costs of transporting finished product to customers are recorded as “Cost of sales” in the consolidated statements of operations.

Revenue related to the initial licensing of patents and technology is recognized when earned; revenue related to running royalties is recognized according to licensee production levels.

Legal Costs

The Corporation expenses legal costs as incurred. Accruals for legal matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated.

Severance Costs

Management routinely reviews its operations around the world in an effort to ensure competitiveness across its operations and geographic areas. When the reviews result in a workforce reduction related to the shutdown of facilities or other optimization activities, severance benefits are provided to employees primarily under ongoing benefit arrangements. These severance costs are accrued once management commits to a plan of termination including the number of employees to be terminated, their job classifications or functions, their locations and the expected termination date.

Income Taxes

The Corporation accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities using enacted tax rates. The effect of a change in tax rates on deferred tax assets or liabilities is recognized in income in the period that includes the enactment date. The Corporation is included in Dow's consolidated federal income tax group and consolidated income tax return. The Corporation accounts for its income taxes following the formula in the Dow-UCC Tax Sharing Agreement used to compute the amount due to Dow or UCC for UCC's share of taxable income and tax attributes on Dow's consolidated income tax return. This method generally follows the separate return method. The amounts reported as income taxes payable or receivable represent the Corporation's payment obligation (or refundable amount) to Dow based on a theoretical tax liability calculated on a separate return method.

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Annual tax provisions include amounts considered sufficient to pay assessments that may result from examinations of prior year tax returns; however, the amount ultimately paid upon resolution of issues raised may differ from the amounts accrued.

The Corporation recognizes the financial statement effects of an uncertain income tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. The Corporation accrues for non-income tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated. The current portion of uncertain income tax positions is included in “Income taxes payable” and the long-term portion is included in “Other noncurrent obligations” in the consolidated balance sheets.

Provision is made for taxes on undistributed earnings of foreign subsidiaries and related companies to the extent that such earnings are not deemed to be permanently invested.

NOTE 2 - RECENT ACCOUNTING GUIDANCE

Recently Adopted Accounting Guidance

During the fourth quarter of 2014, the Corporation adopted Accounting Standard Update ("ASU") 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity," which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. This ASU is effective for fiscal years beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in the financial statements previously issued or available for issuance. The adoption of this standard did not have a material impact on the consolidated financial statements.

Accounting Guidance Issued But Not Adopted as of December 31, 2014

In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," which is the new comprehensive revenue recognition standard that will supersede all existing revenue recognition guidance under U.S. GAAP. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to a customer in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU is effective for annual and interim periods beginning on or after December 15, 2016, and early adoption is not permitted. Entities will have the option of using either a full retrospective approach or a modified approach to adopt the guidance in the ASU. The Corporation is currently evaluating the impact of adopting this guidance.

NOTE 3 - RESTRUCTURING

On October 22, 2012, the Board of Directors of the Corporation approved a restructuring plan to improve the cost effectiveness of the Corporation's global operations. The restructuring plan affected approximately 100 positions and resulted in the shutdown of certain manufacturing facilities. These actions were substantially completed at December 31, 2014.

As a result of the restructuring activities, the Corporation recorded pretax restructuring charges of $71 million in the fourth quarter of 2012 consisting of costs associated with exit or disposal activities of $13 million, severance costs of $10 million and asset write-downs and write-offs of $48 million. The impact of these charges is shown as "Restructuring charges (credits)" in the consolidated statements of operations.

Details on the components of the restructuring charges are discussed below:

Cost Associated with Exit or Disposal Activities

The restructuring charges for costs associated with exit or disposal activities totaled $13 million in the fourth quarter of 2012 for contract cancellations fees.

Severance

The restructuring charges in the fourth quarter of 2012 included severance of $10 million for the separation of approximately 100 employees under the terms of the Corporation's ongoing benefit arrangements, primarily by March 31, 2015. At December 31, 2014, severance of $9 million had been paid and a liability of $1 million remained for nine employees.

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Impairment of Long-Lived Assets, Other Assets and Equity Method Investments

The restructuring charges related to the write-down and write-off of assets in the fourth quarter of 2012 total $48 million. Details regarding the write-downs and write-offs are as follows:

• Certain oxygenated solvents manufacturing facilities in Texas City, Texas, have been consolidated and/or shut down, resulting in an asset write-down of $36 million. The facilities were shut down in the fourth quarter of 2012.

• A performance monomer manufacturing facility in South Charleston, West Virginia, was shut down, resulting in an asset write-down of $1 million and the write-off of other assets totaling $2 million. The assets were shut down in the fourth quarter of 2012.

• Due to a change in the Corporation's strategy regarding its ownership in Nippon Unicar Company Limited ("NUC"), a 50:50 joint venture, the Corporation had determined its equity investment in NUC to be other-than-temporarily impaired and recorded a $9 million write-down of its interest in NUC. UCC completed the sale of its 50 percent ownership interest in NUC on July 1, 2013.

The following table summarizes the activities related to the Corporation's restructuring reserve:

Restructuring Activities	Costs Associated with Exit or Disposal Activities			Severance Costs			Impairment of Long-Lived Assets, Other Assets and Equity Method Investments
In millions										Total
Restructuring charges recognized in the fourth quarter of 2012	$	13		$	10		$	48		$	71
Charges against the reserve	—			—			(48		)	(48		)
Reserve balance at December 31, 2012	$	13		$	10		$	—		$	23
Cash payments	(2		)	(6		)	—			(8		)
Reserve balance at December 31, 2013	$	11		$	4		$	—		$	15
Adjustments to the reserve	(3		)	—			—			(3		)
Cash payments	(2		)	(3		)	—			(5		)
Reserve balance at December 31, 2014	$	6		$	1		$	—		$	7

The reserve balance is included in the consolidated balance sheets as "Accrued and other current liabilities" and "Other noncurrent obligations."

The Corporation expects to incur additional costs in the future related to its restructuring activities, as UCC continually looks for ways to enhance the efficiency and cost effectiveness of its operations. Future costs are expected to include demolition costs related to closed facilities; these will be recognized as incurred. The Corporation 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.

In the first quarter of 2012, the Corporation recorded restructuring charges totaling $3 million related to a workforce reduction of approximately 20 employees. In the third quarter of 2012, all severance related to this restructuring charge was paid.

2014 Adjustments to the 4Q12 Restructuring Plan

In 2014, the Corporation reduced the 4Q12 restructuring reserve related to contract cancellation fees by $3 million.

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NOTE 4 - DIVESTITURES

Divestiture of Polypropylene Licensing and Catalysts Business

On October 11, 2013, Dow entered into a definitive agreement to sell its global Polypropylene Licensing and Catalysts business to W.R. Grace & Co., which included the Corporation's polypropylene catalysts manufacturing facility in Norco, Louisiana as well as customer contracts, accounts receivable, licenses, intellectual property and inventory. On December 2, 2013, the sale was completed and proceeds allocated to the Corporation for the sale were $398 million, net of working capital adjustments and costs to sell, with proceeds subject to customary post-closing adjustments, which were finalized in the fourth quarter of 2014. The carrying amount of the assets divested on December 2, 2013, are noted below:

Assets Divested In millions	December 2, 2013
Accounts receivable	$	4
Inventories	19
Net property	7
Total assets divested	$	30

The Corporation recognized a pretax gain of $368 million on the sale, included in "Sundry income (expense) - net" in the consolidated statements of operations and an after-tax gain of $233 million.

Post-closing adjustments were finalized in the fourth quarter of 2014 and the Corporation recorded a pretax gain of $4 million ($3 million after tax) for the post-closing adjustments. The gain was included in "Sundry income (expense) - net" in the consolidated statements of operations.

NOTE 5 - INVENTORIES

The following table provides a breakdown of inventories:

Inventories at December 31 In millions	2014		2013
Finished goods	$	205	$	233
Work in process	30		31
Raw materials	45		50
Supplies	98		90
Total inventories	$	378	$	404

The reserves reducing inventories from a FIFO basis to a LIFO basis amounted to $125 million at December 31, 2014 and $132 million at December 31, 2013. Inventories that were valued on a LIFO basis, principally U.S. chemicals and plastics product inventories, represented 67 percent of the total inventories at December 31, 2014 and 70 percent of the total inventories at December 31, 2013.

A reduction of certain inventories resulted in the liquidation of some of the Corporation's LIFO inventory layers which had an immaterial impact on pretax income in 2014, 2013 and 2012.

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NOTE 6 - PROPERTY

Property at December 31	Estimated Useful
In millions	Lives (Years)	2014		2013
Land	—	$	49	$	51
Land and waterway improvements	15-25	208		204
Buildings	5-50	419		412
Machinery and equipment	3-20	5,744		5,862
Utility and supply lines	5-20	158		157
Other property	3-30	96		291
Construction in progress	—	157		102
Total property		$	6,831	$	7,079

In millions	2014		2013		2012
Depreciation expense	$	176	$	204	$	217
Manufacturing maintenance and repair costs	$	295	$	304	$	324
Capitalized interest	$	5	$	5	$	8

NOTE 7 - NONCONSOLIDATED AFFILIATES

The Corporation's investments in companies accounted for by the equity method (“nonconsolidated affiliates”) were $13 million at December 31, 2014 and $6 million at December 31, 2013. Dividends received from nonconsolidated affiliates were zero in 2014, $62 million in 2013 and $72 million in 2012. Undistributed earnings of nonconsolidated affiliates included in retained earnings were $7 million at December 31, 2014 and zero at December 31, 2013.

All of the nonconsolidated affiliates in which the Corporation has investments are privately held companies; therefore, quoted market prices are not available.

Principal Nonconsolidated Affiliates

The Corporation's principal nonconsolidated affiliates and the Corporation's ownership interest for each at December 31, 2014, 2013 and 2012 are shown below:

Principal Nonconsolidated Affiliates at December 31	Ownership Interest
	2014	2013	2012
Nippon Unicar Company Limited	—%	—%	50%
Univation Technologies, LLC	—%	—%	50%

Divestiture

On January 31, 2013, UCC entered into a definitive agreement to sell its 50 percent ownership interest in NUC to TonenGeneral Sekiyu K. K. On July 1, 2013, the sale was completed for $13 million. As a result of this share sale, the Corporation reclassified a $20 million gain, primarily attributable to cumulative translation adjustments, from "Accumulated other comprehensive loss" into earnings and is included in "Sundry income (expense) - net" in the consolidated statements of operations for the year ended December 31, 2013. Including this reclassification, the sale resulted in no pretax gain or loss.

Stock Dividend

On September 26, 2013, UCC declared a stock dividend to Dow of its 100 percent ownership interest in Union Carbide Subsidiary C, Inc., which included UCC's full ownership interest in Univation. This stock dividend was effective on September 29, 2013 and totaled $70 million.

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Summarized Income Statement Information
In millions	2014		2013 (1)		2012
Sales	$	—	$	452	$	773
Gross profit	$	—	$	208	$	209
Net income	$	—	$	142	$	112

(1) Income statement information for NUC is for the six-month period ended June 30, 2013 and income statement information for Univation is for the nine-month period ended September 30, 2013.

The Corporation had no investment in principal nonconsolidated affiliates at December 31, 2014 and December 31, 2013, and its equity in earnings was zero in 2014, $84 million in 2013 and $59 million in 2012. The summarized income statement information presented represents the combined accounts (at 100 percent) of the principal nonconsolidated affiliates. See Note 3 for details on the 2012 impairment charge related to NUC.

NOTE 8 - INVESTMENTS IN RELATED COMPANIES

The Corporation's ownership interests in related companies at December 31, 2014 and 2013 were as follows:

Investments in Related Companies at December 31	Ownership Interest				Investment Balance
In millions (except percentages)	2014		2013		2014		2013
Dow International Holdings Company	19	%	19	%	$	807	$	807
Dow Quimica Argentina S.A.	23	%	23	%	—		—
Dow Quimica Mexicana S.A. de C.V.	15	%	15	%	5		5
GWN Holding, Inc.	—	%	6	%	—		10
Other	—	%	—	%	1		1
Total Investments in Related Companies					$	813	$	823

In the fourth quarter of 2014, UCC authorized a distribution to Dow of its shares of common stock in GWN Holdings, Inc. ("GWN"). Prior to the stock distribution, GWN was owned 6.3 percent by UCC and 93.7 percent by Dow and its other wholly owned subsidiaries. Prior to this distribution, UCC's investment in GWN was $10 million, accounted for as a cost method investment. No gain or loss was recorded on the stock distribution.

In the fourth quarter of 2013, the Corporation recorded an impairment charge of $25 million for the full value of the cost method investment in Dow Quimica Argentina S.A. The related company investment, classified as a Level 3 measurement, was valued using unobservable inputs. The impairment charge was triggered by ongoing losses in the entity and is included in "Sundry income (expense) - net" in the consolidated statements of operations.

NOTE 9 - INTANGIBLE ASSETS

The following table provides information regarding the Corporation's intangible assets:

Intangible Assets at December 31			2014							2013
In millions	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Intangible assets with finite lives:
Licenses and intellectual property	$	33	$	(33	)	$	—	$	33	$	(33	)	$	—
Software	55		(40		)	15		49		(39		)	10
Total intangible assets	$	88	$	(73	)	$	15	$	82	$	(72	)	$	10

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The following table provides information regarding amortization expense:

Amortization Expense In millions	2014		2013		2012
Software (1)	$	2	$	2	$	2

(1) Included in “Cost of sales” in the consolidated statements of operations.

Total estimated amortization expense for the next five fiscal years is as follows:

Estimated Amortization Expense for Next Five Years In millions
2015	$	2
2016	$	3
2017	$	3
2018	$	3
2019	$	2

NOTE 10 - FINANCIAL INSTRUMENTS

Investments

The Corporation's investments in marketable securities are classified as available-for-sale. There were no proceeds from sales of available-for-sale securities in 2014, 2013 and 2012.

Portfolio managers regularly review all of the Corporation's holdings to determine if any investments are other-than-temporarily impaired. The analysis includes reviewing the amount of the impairment, as well as the length of time it has been impaired. In addition, specific guidelines for each instrument type are followed to determine if an other-than-temporary impairment has occurred. At December 31, 2014 and December 31, 2013, there were no impairment indicators or circumstances that would result in a material adjustment of these investments.

The Corporation's investments in debt securities, shown below, had contractual maturities of less than 10 years at December 31, 2014.

Fair Value of Financial Instruments:
	At December 31, 2014											At December 31, 2013
In millions	Cost			Gain		Loss			Fair Value			Cost			Gain		Loss			Fair Value
Debt securities (1)	$	5		$	—	$	—		$	5		$	5		$	—	$	—		$	5
Long-term debt	$	(482	)	$	—	$	(119	)	$	(601	)	$	(471	)	$	—	$	(85	)	$	(556	)

(1) Marketable securities are included in “Other investments” in the consolidated balance sheets.

Cost approximates fair value for all other financial instruments.

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NOTE 11 - FAIR VALUE MEASUREMENTS

Fair Value Measurements on a Recurring Basis

The following table summarizes the basis used to measure certain assets and liabilities at fair value on a recurring basis:

Basis of Fair Value Measurements on a Recurring Basis at December 31	Significant Other Observable Inputs  (Level 2)		Significant Other Observable Inputs  (Level 2)
In millions	2014		2013
Assets at fair value:
Debt securities (1)	$	5	$	5
Liabilities at fair value:
Long-term debt (2)	$	601	$	556

(1) Included in “Other investments” in the consolidated balance sheets.

(2) See Note 10 for information on fair value measurements of long-term debt.

For assets and liabilities classified as Level 2 measurements, where the security is frequently traded in less active markets, fair value is based on the closing price at the end of the period; where the security is less frequently traded, fair value is based on the price a dealer would pay for the security or similar securities, adjusted for any terms specific to that asset or liability, or by using observable market data points of similar, more liquid securities to imply the price. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance/quality checks.

Assets that are measured using significant other observable inputs are primarily valued by reference to quoted prices of similar assets in active markets, adjusted for any terms specific to that asset. For all other assets for which observable inputs are used, fair value is derived through the use of fair value models, such as a discounted cash flow model or other standard pricing models. There were no transfers between Levels 1 and 2 during the years ended December 31, 2014 and 2013.

Fair Value Measurements on a Nonrecurring Basis

The following table summarizes the basis used to measure certain assets and liabilities at fair value on a nonrecurring basis in the consolidated balance sheets in 2012:

Basis of Fair Value Measurements on a Nonrecurring Basis in 2012	Significant Other Unobservable Inputs		Total Losses
In millions	(Level 3)		2012
Assets at fair value:
Long-lived assets, other assets and equity method investment	$	42	$	(179	)

2012 Fair Value Measurements on a Nonrecurring Basis

As part of the restructuring plan that was approved on October 22, 2012, the Corporation shut down a number of manufacturing facilities during the fourth quarter of 2012. The manufacturing assets and facilities associated with this plan were written down to zero in the fourth quarter of 2012. In addition, an equity investment was impaired. The equity investment, classified as a Level 3 measurement, was valued at $33 million using unobservable inputs, including assumptions a market participant would use to measure the fair value of the group of assets. These impairment charges, totaling $48 million, were included in "Restructuring charges (credits)" in the consolidated statements of operations. See Note 3 for additional information. Also included within the losses is a charge of $131 million related to an impairment of an investment in a related company. The investment, classified as a Level 3 measurement, was valued at $9 million using unobservable inputs, including assumptions a market participant would use to measure fair value of the group of assets. See Note 17 for additional information.

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NOTE 12 - SUPPLEMENTARY INFORMATION

Sundry Income (Expense) - Net
In millions	2014			2013			2012
Dow administrative and overhead fees (1)	$	(26	)	$	(25	)	$	(32	)
Net commission expense - related company (1)	(21		)	(17		)	(35		)
Dividend income - related companies (1)	12			16			25
Net gain on sale of railcar fleet (1)	66			—			—
Reclassification of cumulative translation adjustment	(16		)	—			—
Net gain on sale of Dow's Polypropylene Licensing and Catalysts business (2)	4			368			—
Net gain on sales of property (1)	4			—			5
Impairment of investment in related company (1)	—			(25		)	(131		)
Foreign exchange loss	—			(2		)	—
Other - net	(9		)	(7		)	(14		)
Total sundry income (expense) - net	$	14		$	308		$	(182	)

(1) See Note 17 for additional information.

(2) See Note 4 for additional information.

Accrued and Other Current Liabilities

"Accrued and other current liabilities" were $192 million at December 31, 2014 and $182 million at December 31, 2013. The current portion of the Corporation's accrued obligations for environmental matters, which is a component of "Accrued and other current liabilities," was $69 million at December 31, 2014 and $58 million at December 31, 2013 (see Note 13 for additional information). No other component of accrued and other current liabilities was more than 5 percent of total current liabilities.

Supplementary Cash Flow Information
In millions	2014		2013		2012
Cash payments for interest	$	37	$	37	$	37
Cash payments (refunds) for income taxes (1)	$	555	$	322	$	(94	)

(1) Amounts reported in 2013 have been adjusted to reflect an additional $30 million in cash paid for income taxes.

NOTE 13 - 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 December 31, 2014, the Corporation had accrued obligations of $132 million for probable environmental remediation and restoration costs, including $22 million for the remediation of Superfund sites. This is management's best estimate of the costs for remediation and restoration with respect to environmental matters for which the Corporation 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 Corporation's results of operations, financial condition and cash flows. It is the opinion of the Corporation's management, however, that the possibility is remote that costs in excess of the range disclosed will have a material impact on the Corporation'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, 2013, the Corporation had accrued obligations of $126 million for probable environmental remediation and restoration costs, including $23 million for the remediation of Superfund sites.

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The following table summarizes the activity in the Corporation's accrued obligations for environmental matters for the years ended December 31, 2014 and 2013:

Accrued Liability for Environmental Matters
In millions	2014			2013
Balance at January 1	$	126		$	95
Additional accruals	62			80
Charges against reserve	(56		)	(49		)
Balance at December 31	$	132		$	126

The amounts charged to income on a pretax basis related to environmental remediation totaled $62 million in 2014, $80 million in 2013 and $31 million in 2012. Capital expenditures for environmental protection were $6 million in 2014, $2 million in 2013 and $7 million in 2012.

Litigation

The Corporation is involved in a number of legal proceedings and claims with both private and governmental parties. These cover a wide range of matters, including, but not limited to: product liability; trade regulation; governmental regulatory proceedings; health, safety and environmental matters; employment; patents; contracts; taxes; and commercial disputes.

Asbestos-Related Matters

Separately, the Corporation 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 UCC sold in the past, alleged exposure to asbestos-containing products located on UCC's premises, and UCC's responsibility for asbestos suits filed against a former UCC 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 the Corporation's products.

The Corporation expects more asbestos-related suits to be filed against UCC and Amchem in the future, and will aggressively defend or reasonably resolve, as appropriate, both pending and future claims.

Estimating the Liability

Based on a study completed by Analysis, Research & Planning Corporation (“ARPC”) in January 2003, the Corporation increased its December 31, 2002 asbestos-related liability for pending and future claims for the 15-year period ending in 2017 to $2.2 billion, excluding future defense and processing costs. Since then, the Corporation has compared current asbestos claim and resolution activity to the results of the most recent ARPC study at each balance sheet date to determine whether the accrual continues to be appropriate. In addition, the Corporation has requested ARPC to review the Corporation's historical asbestos claim and resolution activity each year since 2004 to determine the appropriateness of updating the most recent ARPC study.

In October 2012, the Corporation requested ARPC to review its historical asbestos claim and resolution activity and determine the appropriateness of updating its December 2010 study. In response to that request, ARPC reviewed and analyzed data through September 30, 2012. In December 2012, based upon ARPC's December 2012 study and the Corporation's own review of the asbestos claim and resolution activity for 2012, it was determined that no adjustment to the accrual was required at December 31, 2012. The Corporation's asbestos-related liability for pending and future claims was $602 million at December 31, 2012.

In October 2013, the Corporation requested ARPC to review its historical asbestos claim and resolution activity and determine the appropriateness of updating its December 2012 study. In response to that request, ARPC reviewed and analyzed data through September 30, 2013. In December 2013, ARPC stated that an update of its study would not provide a more likely estimate of future events than the estimate reflected in its December 2012 study and, therefore, the estimate in that study remained applicable. Based on the Corporation's own review of the asbestos claim and resolution activity and ARPC's response, the Corporation determined that no change to the accrual was required. The Corporation's asbestos-related liability for pending and future claims was $501 million at December 31, 2013.

In October 2014, the Corporation requested ARPC to review its historical asbestos claim and resolution activity and determine the appropriateness of updating its December 2012 study. In response to that request, ARPC reviewed and analyzed data through September 30, 2014. The resulting study, completed by ARPC in December 2014, estimates that the undiscounted cost

42

of disposing of pending and future claims against UCC and Amchem, excluding future defense and processing costs, to be between $540 million and $640 million through 2029 based on the data as of September 30, 2014. As in earlier studies, ARPC provided longer periods of time in its December 2014 study, but also reaffirmed that forecasts for shorter periods of time are more accurate than those for longer periods of time.

In December 2014, based on ARPC's December 2014 study and the Corporation's own review of the asbestos claim and resolution activity, the Corporation determined that an adjustment to the accrual was required due to the increase in mesothelioma claim activity compared with what had been forecasted in the December 2012 study. Accordingly, the Corporation increased its asbestos-related liability for pending and future claims by $78 million and is included in "Asbestos-related charge" in the consolidated statement of operations. The Corporation's asbestos-related liability for pending and future claims was $513 million at December 31, 2014, and approximately 22 percent of the recorded liability related to pending claims and approximately 78 percent related to future claims. At December 31, 2013, approximately 19 percent of the recorded liability related to pending claims and approximately 81 percent related to future claims.

Insurance Receivables

At December 31, 2002, the Corporation increased the receivable for insurance recoveries related to its asbestos liability to $1.35 billion, substantially exhausting its asbestos product liability coverage. The insurance receivable related to the asbestos liability was determined by the Corporation after a thorough review of applicable insurance policies and the 1985 Wellington Agreement, to which the Corporation and many of its liability insurers are signatory parties, as well as other insurance settlements, with due consideration given to applicable deductibles, retentions and policy limits, and taking into account the solvency and historical payment experience of various insurance carriers. The Wellington Agreement and other agreements with insurers are designed to facilitate an orderly resolution and collection of the Corporation's insurance policies and to resolve issues that the insurance carriers may raise.

In September 2003, the Corporation filed a comprehensive insurance coverage case, now proceeding in the Supreme Court of the State of New York, County of New York, seeking to confirm its rights to insurance for various asbestos claims and to facilitate an orderly and timely collection of insurance proceeds (the “Insurance Litigation”). The Insurance Litigation was filed against insurers that were not signatories to the Wellington Agreement and/or did not otherwise have agreements in place with the Corporation regarding their asbestos-related insurance coverage, in order to facilitate an orderly resolution and collection of such insurance policies and to resolve issues that the insurance carriers may raise. Since the filing of the case, the Corporation has reached settlements with most of the carriers involved in the Insurance Litigation and continues to pursue settlement with the remaining carrier.

The Corporation's receivable for insurance recoveries related to its asbestos liability was $10 million at December 31, 2014 and $25 million at December 31, 2013. At December 31, 2014 and 2013, all of the receivable for insurance recoveries was related to insurers that are not signatories to the Wellington Agreement and/or do not otherwise have agreements in place regarding their asbestos-related insurance coverage.

In addition to the receivable for insurance recoveries related to its asbestos liability, the Corporation had receivables for defense and resolution costs submitted to insurance carriers that have settlement agreements in place regarding their asbestos-related insurance coverage. The following table summarizes the Corporation's receivables related to its asbestos-related liability:

Receivables for Asbestos-Related Costs at December 31 In millions	2014		2013
Receivables for defense and resolution costs - carriers with settlement agreements	$	69	$	66
Receivables for insurance recoveries - carriers without settlement agreements	10		25
Total	$	79	$	91

After a review of its insurance policies, with due consideration given to applicable deductibles, retentions and policy limits, and after taking into account the solvency and historical payment experience of various insurance carriers; existing insurance settlements; and the advice of outside counsel with respect to the applicable insurance coverage law relating to the terms and conditions of its insurance policies, the Corporation continues to believe that its recorded receivable for insurance recoveries from all insurance carriers is probable of collection.

The Corporation expenses defense costs as incurred. The pretax impact for defense and resolution costs, net of insurance, was $108 million in 2014, $107 million in 2013 and $100 million in 2012, and was reflected in “Cost of sales” in the consolidated statements of operations.

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Summary

The amounts recorded by the Corporation for the asbestos-related liability and related insurance receivable described above were based upon current, known facts. However, future events, such as the number of new claims to be filed and/or received each year, the average cost of disposing of each such claim, coverage issues among insurers, and the continuing solvency of various insurance companies, as well as the numerous uncertainties surrounding asbestos litigation in the United States, could cause the actual costs and insurance recoveries for the Corporation to be higher or lower than those projected or those recorded.

Because of the uncertainties described above, the Corporation's management cannot estimate the full range of the cost of resolving pending and future asbestos-related claims facing UCC and Amchem. The Corporation's management believes that it is reasonably possible that the cost of disposing of the Corporation's asbestos-related claims, including future defense costs, could have a material impact on the Corporation's results of operations and cash flows for a particular period and on the consolidated financial position of the Corporation.

While it is not possible at this time to determine with certainty the ultimate outcome of any of the legal proceedings and claims referred to in this filing, management believes that adequate provisions have been made for probable losses with respect to pending claims and proceedings, and that, except for the asbestos-related matters described above, the ultimate outcome of all known and future claims, after provisions for insurance, will not have a material adverse impact on the results of operations, cash flows and financial position of the Corporation. Should any losses be sustained in connection with any of such legal proceedings and claims in excess of provisions provided and available insurance, they will be charged to income when determinable.

Purchase Commitments

At December 31, 2014, the Corporation had various outstanding commitments for take-or-pay agreements, with remaining terms extending from 1 to 13 years. Such commitments were not in excess of current market prices. The fixed and determinable portion of obligations under purchase commitments at December 31, 2014 is presented in the following table:

Fixed and Determinable Portion of Take-or-Pay Obligations at December 31, 2014 In millions
2015	$	24
2016	22
2017	22
2018	20
2019	18
2020 and beyond	47
Total	$	153

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NOTE 14 - NOTES PAYABLE AND LONG-TERM DEBT

Notes Payable at December 31 In millions	2014			2013
Notes payable - related companies	$	43		$	34
Year-end average interest rates	0.82		%	0.92		%

Long-Term Debt at December 31	2014					2013
	Average					Average
In millions	Rate		2014			Rate		2013
Promissory notes and debentures:
Debentures due 2023	7.875	%	$	175		7.875	%	$	175
Debentures due 2025	6.79	%	12			6.79	%	12
Debentures due 2025	7.50	%	150			7.50	%	150
Debentures due 2096	7.75	%	135			7.75	%	135
Capital lease obligations	—		11			—		—
Unamortized debt discount	—		(1		)	—		(1		)
Long-term debt due within one year	—		(1		)	—		—
Total long-term debt			$	481				$	471

Annual Installments on Long-Term Debt for Next Five Years In millions
2015	$	1
2016	$	1
2017	$	1
2018	$	1
2019	$	1

Debt Covenants and Default Provisions

The Corporation's outstanding public debt has been issued under indentures which contain, among other provisions, covenants that the Corporation must comply with while the underlying notes are outstanding. Such covenants are typically based on the Corporation's size and financial position and include, subject to the exceptions and qualifications contained in the indentures, obligations not to (i) allow liens on principal U.S. manufacturing facilities, (ii) enter into sale and lease-back transactions with respect to principal U.S. manufacturing facilities, or (iii) merge into or consolidate with any other entity or sell or convey all or substantially all of its assets. Failure of the Corporation to comply with any of these covenants could, after the passage of any applicable grace period, result in a default under the applicable indenture which would allow the note holders to accelerate the due date of the outstanding principal and accrued interest on the subject notes.

NOTE 15 - PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS

Pension Plans

The Corporation has a defined benefit pension plan that covers substantially all employees in the United States. Benefits are based on length of service and the employee's three highest consecutive years of compensation. Employees hired on or after January 1, 2008 earn benefits that are based on a set percentage of annual pay, plus interest. The Corporation also has a non-qualified supplemental pension plan.

The Corporation's funding policy is to contribute to the plan when pension laws or economics either require or encourage funding. In 2014, UCC contributed $2 million to its pension plans including contributions to fund benefits payments for its non-qualified supplemental plan. UCC expects to contribute approximately $2 million to its pension plans in 2015.

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The weighted-average assumptions used to determine pension plan obligations and net periodic benefit costs are provided below:

Pension Plan Assumptions	Benefit Obligations at December 31						Net Periodic Costs for the Year
	2014		2013		2012		2014		2013		2012
Discount rate	3.90	%	4.75	%	3.85	%	4.75	%	3.85	%	4.85	%
Rate of increase in future compensation levels	4.50	%	4.50	%	4.50	%	4.50	%	4.50	%	4.50	%
Long-term rate of return on assets	—		—		—		6.80	%	6.90	%	6.90	%

The Corporation determines the expected long-term rate of return on plan assets by performing a detailed analysis of key economic and market factors driving historical returns for each asset class and formulating a projected return based on factors in the current environment. Factors considered include, but are not limited to, inflation, real economic growth, interest rate yield, interest rate spreads, and other valuation measures and market metrics. The expected long-term rate of return for each asset class is then weighted based on the strategic asset allocation approved by the governing body for each plan. The Corporation's historical experience with the pension fund asset performance is also considered. The discount rates utilized to measure the pension and other postretirement obligations of the U.S. qualified plans are based on the yield on high-quality fixed income investments at the measurement date. Future expected actuarially determined cash flows of the plans are matched against the Towers Watson RATE:Link yield curve (based on 60th and 90th percentile bond yields) to arrive at a single discount rate by plan.

On October 27, 2014, the Society of Actuaries ("SOA") published updated mortality tables and mortality improvement scales (generational mortality tables), which reflect increased life expectancy. Based on an evaluation of the mortality experience of the Corporation's U.S. pension plans and the SOA's tables, the Corporation adopted updated generational mortality tables for purposes of measuring U.S. pension and other postretirement obligations at year-end. The mortality assumption change increased the pension and other postretirement benefit obligations by $139 million at December 31, 2014.

The accumulated benefit obligation for all defined benefit pension plans was $4.3 billion at December 31, 2014 and $4.0 billion at December 31, 2013.

Pension Plans with Accumulated Benefit Obligations in Excess ofPlan Assets at December 31
In millions	2014		2013
Projected benefit obligation	$	4,345	$	3,995
Accumulated benefit obligation	$	4,302	$	3,963
Fair value of plan assets	$	3,543	$	3,586

Other Postretirement Benefits

The Corporation provides certain health care and life insurance benefits to retired U.S. employees. The plan provides health care benefits, including hospital, physicians' services, drug and major medical expense coverage, and life insurance benefits. The Corporation and the retiree share the cost of these benefits, with the Corporation portion increasing as the retiree has increased years of credited service, although there is a cap on the Corporation portion. The Corporation has the ability to change these benefits at any time. Employees hired after January 1, 2008 are not covered under this plan.

During the fourth quarter of 2013, the Corporation started implementing an Employer Group Waiver Plan (“EGWP”) for its Medicare-eligible, retiree medical plan participants, which became effective on January 1, 2014. As a result, the Medicare Part D Retiree Drug Subsidy program (“RDS”) was eliminated on January 1, 2014. The EGWP does not significantly alter the benefits provided to retiree medical plan participants. The federal subsidies to be earned under the EGWP are expected to exceed those earned under the RDS and will be partially offset by increased costs related to the administration of the EGWP. The formation of the EGWP and the resulting change in assumption generated an actuarial gain of $55 million at December 31, 2013, included in "Accumulated other comprehensive loss" in the consolidated balance sheets. The Corporation also recognized a reduction in the postretirement benefit obligation of $55 million at December 31, 2013. The net periodic benefit cost decreased by $10 million in 2014 due to the EGWP.

The Corporation funds most of the cost of these health care and life insurance benefits as incurred. In 2014, UCC did not make any contributions to its other postretirement benefit plan trust. Likewise, UCC does not expect to contribute assets to its other postretirement benefit plan trust in 2015.

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The weighted-average assumptions used to determine other postretirement benefit obligations and net periodic benefit costs for the plan are provided in the following table:

Plan Assumptions for Other Postretirement Benefits	Benefit Obligations at December 31						Net Periodic Costs for the Year
	2014		2013		2012		2014		2013		2012
Discount rate	3.75	%	4.40	%	3.65	%	4.40	%	3.65	%	4.60	%
Initial health care cost trend rate	7.05	%	7.46	%	7.85	%	7.46	%	7.85	%	8.30	%
Ultimate health care cost trend rate	5.00	%	5.00	%	5.00	%	5.00	%	5.00	%	5.00	%
Year ultimate trend rate to be reached	2020		2020		2019		2020		2020		2019

Increasing the assumed medical cost trend rate by one percentage point in each year would increase the accumulated postretirement benefit obligation at December 31, 2014 by $6 million and the net periodic postretirement benefit cost for the year by an immaterial amount. Decreasing the assumed medical cost trend rate by one percentage point in each year would decrease the accumulated postretirement benefit obligation at December 31, 2014 by $16 million and the net periodic postretirement benefit cost for the year by an immaterial amount.

Net Periodic Benefit Cost for all Plans
	Defined Benefit Pension Plans									Other Postretirement Benefits
In millions	2014			2013			2012			2014			2013			2012
Service cost	$	30		$	31		$	28		$	1		$	2		$	2
Interest cost	183			165			189			13			14			17
Expected return on plan assets	(232		)	(232		)	(235		)	—			—			—
Amortization of prior service cost (credit)	6			7			7			—			(1		)	(2		)
Amortization of net loss	66			88			60			(10		)	—			—
Net periodic benefit cost	$	53		$	59		$	49		$	4		$	15		$	17

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss for all Plans
	Defined Benefit Pension Plans									Other Postretirement Benefits
In millions	2014			2013			2012			2014			2013			2012
Net (gain) loss	$	450		$	(283	)	$	375		$	(12	)	$	(102	)	$	16
Prior service credit arising during period	(38		)	—			—			—			—			—
Amortization of prior service (cost) credit	(6		)	(7		)	(7		)	—			1			2
Amortization of net gain (loss)	(66		)	(88		)	(60		)	10			—			—
Total recognized in other comprehensive (income) loss	$	340		$	(378	)	$	308		$	(2	)	$	(101	)	$	18
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	393		$	(319	)	$	357		$	2		$	(86	)	$	35

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Change in Projected Benefit Obligations, Plan Assets and Funded Status for all Plans
In millions	Defined Benefit Pension Plans						Other Postretirement Benefits
Change in projected benefit obligation:	2014			2013			2014			2013
Benefit obligation at beginning of year	$	3,995		$	4,433		$	302		$	414
Service cost	30			31			1			2
Interest cost	183			165			13			14
Plan amendments	(38		)	—			—			—
Actuarial changes in assumptions and experience	531			(342		)	(13		)	(102		)
Benefits paid	(340		)	(285		)	(33		)	(26		)
Other	(16		)	(7		)	—			—
Benefit obligation at end of year	$	4,345		$	3,995		$	270		$	302
Change in plan assets:
Fair value of plan assets at beginning of year	$	3,586		$	3,548		$	—		$	—
Actual return on plan assets	312			174			—			—
Employer contributions	2			158			—			—
Asset transfer	(17		)	(9		)	—			—
Benefits paid	(340		)	(285		)	—			—
Fair value of plan assets at end of year	$	3,543		$	3,586		$	—		$	—
Funded status at end of year	$	(802	)	$	(409	)	$	(270	)	$	(302	)

Net amounts recognized in the consolidated balance sheets at December 31:
Current liabilities	$	(1	)	$	(1	)	$	(27	)	$	(33	)
Noncurrent liabilities	(801		)	(408		)	(243		)	(269		)
Net amounts recognized in the consolidated balance sheets	$	(802	)	$	(409	)	$	(270	)	$	(302	)
Pretax amounts recognized in AOCL at December 31:
Net loss (gain)	$	1,955		$	1,570		$	(109	)	$	(107	)
Prior service cost (credit)	(19		)	26			(1		)	(1		)
Pretax balance in AOCL at end of year	$	1,936		$	1,596		$	(110	)	$	(108	)

In 2015, an estimated net loss of $87 million and prior service credit of $1 million for the defined benefit pension plans will be amortized from AOCL to net periodic benefit cost. In 2015, an estimated net gain of $11 million for the other postretirement benefit plan will be amortized from AOCL to net periodic benefit cost.

Estimated Future Benefit Payments

The estimated future benefit payments, reflecting expected future service, as appropriate, are presented in the following table:

Estimated Future Benefit Payments at December 31, 2014
In millions	Defined Benefit Pension Plans		Other Postretirement Benefits
2015	$	280	$	28
2016	278		23
2017	278		21
2018	277		20
2019	277		19
2020 through 2024	1,361		88
Total	$	2,751	$	199

Plan Assets

Plan assets consist primarily of equity and fixed income securities of U.S. and foreign issuers, and include alternative investments such as real estate, private equity and other absolute return strategies. At December 31, 2014, plan assets totaled $3.5 billion and $3.6 billion at December 31, 2013 which included no Dow common stock.

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Investment Strategy and Risk Management for Plan Assets

The Corporation's investment strategy for the plan assets is to manage the assets in relation to the liability in order to pay retirement benefits to plan participants over the life of the plans. This is accomplished by identifying and managing the exposure to various markets risks, diversifying investments across various asset classes and earning an acceptable long-term rate of return consistent with an acceptable amount of risk, while considering the liquidity needs of the plan.

The plan is permitted to use derivative instruments for investment purposes, as well as for hedging the underlying asset and liability exposures and rebalancing the asset allocation. The plan uses value at risk, stress testing, scenario analysis and Monte Carlo simulation to monitor and manage both asset risk in the portfolios and surplus risk.

Equity securities primarily include investments in large- and small-cap companies located in both developed and emerging markets around the world. Fixed income securities are primarily U.S. dollar based and include U.S. treasuries and investment grade corporate bonds of companies diversified across industries. Alternative investments primarily include investments in real estate, private equity limited partnerships and absolute return strategies. Other significant investment types include various insurance contracts; and interest rate, equity and foreign exchange derivative investments and hedges.

Strategic Target Allocation of Plan Assets
Asset Category	Target Allocation
Equity securities	23	%
Fixed income securities	45	%
Alternative investments	27	%
Other	5	%
Total	100	%

Concentration of Risk

The Corporation mitigates the credit risk of investments by establishing guidelines with the investment managers that limit investment in any single issue or issuer to an amount that is not material to the portfolio being managed. These guidelines are monitored for compliance both by the Corporation and the external managers. Credit risk for hedging activity is mitigated by utilizing multiple counterparties, collateral support agreements, and centralized clearing where appropriate.

The Northern Trust Collective Government Short Term Investment money market fund is utilized as the sweep vehicle for the pension plan, which from time to time can represent a significant investment. Approximately 40 percent of the liability of the pension plan is covered by a participating group annuity issued by Prudential Insurance Company.

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The following tables summarize the bases used to measure the Corporation's pension plan assets at fair value for the years ended December 31, 2014 and 2013:

Basis of Fair Value Measurements at December 31, 2014 In millions	Quoted Prices in Active Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Cash and cash equivalents	$	3	$	131		$	—	$	134
Equity securities:
U.S. equity	$	360	$	78		$	1	$	439
Non-U.S. equity - developed countries	166		160			—		326
Emerging markets	40		62			3		105
Equity derivatives	—		(1		)	—		(1		)
Total equity securities	$	566	$	299		$	4	$	869
Fixed income securities:
U.S. government and municipalities	$	—	$	673		$	—	$	673
U.S. agency mortgage backed securities	—		66			—		66
Corporates - investment grade	—		743			—		743
Non-U.S. governments - developed countries	—		6			—		6
Non-U.S. corporates - developed countries	—		160			—		160
Emerging markets debt	—		14			—		14
Other asset-backed securities	—		11			1		12
Other fixed income funds	—		—			32		32
High yield bonds	—		2			—		2
Total fixed income securities	$	—	$	1,675		$	33	$	1,708
Alternative investments:
Real estate	$	—	$	—		$	288	$	288
Private equity	—		—			233		233
Absolute return	—		126			166		292
Total alternative investments	$	—	$	126		$	687	$	813
Total other securities	$	—	$	(3	)	$	22	$	19
Total pension plan assets at fair value	$	569	$	2,228		$	746	$	3,543

50

Basis of Fair Value Measurements at December 31, 2013 In millions	Quoted Prices in Active Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Cash and cash equivalents	$	3	$	304		$	—	$	307
Equity securities:
U.S. equity	$	388	$	143		$	—	$	531
Non-U.S. equity - developed countries	181		85			—		266
Emerging markets	119		67			2		188
Total equity securities	$	688	$	295		$	2	$	985
Fixed income securities:
U.S. government and municipalities	$	—	$	606		$	—	$	606
U.S. agency mortgage backed securities	—		63			—		63
Corporates - investment grade	—		635			—		635
Non-U.S. governments - developed countries	—		2			—		2
Non-U.S. corporates - developed countries	—		159			—		159
Emerging markets debt	—		22			—		22
Other asset-backed securities	—		9			2		11
Other fixed income funds	—		—			12		12
High yield bonds	—		3			—		3
Fixed income derivatives	—		(3		)	—		(3		)
Total fixed income securities	$	—	$	1,496		$	14	$	1,510
Alternative investments:
Real estate	$	—	$	—		$	292	$	292
Private equity	—		—			228		228
Absolute return	—		127			103		230
Total alternative investments	$	—	$	127		$	623	$	750
Total other securities	$	—	$	12		$	22	$	34
Total pension plan assets at fair value	$	691	$	2,234		$	661	$	3,586

For assets classified as Level 1 measurements (measured using quoted prices in active markets), the total fair value is either the price of the most recent trade at the time of the market close or the official close price, as defined by the exchange on which the asset is most actively traded on the last trading day of the period, multiplied by the number of units held without consideration of transaction costs.

For assets classified as Level 2 measurements, where the security is frequently traded in less active markets, fair value is based on the closing price at the end of the period; where the security is less frequently traded, fair value is based on the price a dealer would pay for the security or similar securities, adjusted for any terms specific to that asset or liability. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance and quality checks. For derivative assets and liabilities, standard industry models are used to calculate the fair value of the various financial instruments based on significant observable market inputs such as foreign exchange rates, commodity prices, swap rates, interest rates, and implied volatilities obtained from various market sources.

Some plan assets are held in funds where a net asset value is calculated based on the fair value of the underlying assets and the number of shares owned. The classification of the fund (Level 2 or 3 measurements) is determined based on the lowest level classification of significant holdings within the fund. For all other assets for which observable inputs are used, fair value is derived through the use of fair value models, such as a discounted cash flow model or other standard pricing models.

For assets classified as Level 3 measurements, total fair value is based on significant unobservable inputs including assumptions where there is little, if any, market activity for the investment. Investment managers or fund managers provide valuations of the investment on a monthly or quarterly basis. These valuations are reviewed for reasonableness based on applicable sector, benchmark and company performance. Adjustments to valuations are made where appropriate. Where available, audited financial statements are obtained and reviewed for the investments as support for the manager's investment valuation.

51

The following table summarizes the changes in fair value of Level 3 pension plan assets for the years ended December 31, 2014 and 2013:

Fair Value Measurement of Level 3 Pension Plan Assets In millions	Equity Securities			Fixed Income Securities			Alternative Investments			Other Investments		Total
Balance at January 1, 2013	$	3		$	17		$	552		$	22	$	594
Actual return on plan assets:
Relating to assets held at Dec 31, 2013	(2		)	—			22			—		20
Relating to assets sold during 2013	—			—			40			—		40
Purchases, sales and settlements	1			(3		)	9			—		7
Balance at December 31, 2013	$	2		$	14		$	623		$	22	$	661
Actual return on plan assets:
Relating to assets held at Dec 31, 2014	(2		)	—			(22		)	—		(24		)
Relating to assets sold during 2014	—			—			35			—		35
Purchases, sales and settlements	4			20			53			—		77
Transfers out of Level 3, net	—			(1		)	—			—		(1		)
Foreign currency impact	—			—			(2		)	—		(2		)
Balance at December 31, 2014	$	4		$	33		$	687		$	22	$	746

NOTE 16 - LEASED PROPERTY

The Corporation has leases primarily for facilities and distribution equipment. The future minimum rental payments under leases with remaining noncancelable terms in excess of one year are as follows:

Minimum Lease Commitments at December 31, 2014 In millions
2015	$	7
2016	5
2017	4
2018	3
2019	2
2020 and thereafter	8
Total	$	29

Rental expenses under leases were $27 million in 2014, $31 million in 2013 and $35 million in 2012.

NOTE 17 - RELATED PARTY TRANSACTIONS

The Corporation sells its products to Dow to simplify the customer interface process. Products are sold to and purchased from Dow at market-based prices in accordance with the terms of Dow’s intercompany pricing policies. After each quarter, the Corporation and Dow analyze the pricing used for the sales in that quarter and reach agreement on any necessary adjustments, at which point the prices are final. The Corporation also procures certain commodities and raw materials through a Dow subsidiary and pays a commission to that Dow subsidiary based on the volume and type of commodities and raw materials purchased. The commission expense is included in “Sundry income (expense) - net” in the consolidated statements of operations. Purchases from that Dow subsidiary were approximately $2.9 billion in 2014, $2.9 billion in 2013 and $3.1 billion in 2012.

The Corporation has a master services agreement with Dow whereby Dow provides services including, but not limited to, accounting, legal, treasury (investments, cash management, risk management, insurance), procurement, human resources, environmental, health and safety, and business management for UCC. Under the master services agreement with Dow, general administrative and overhead type services that Dow routinely allocates to various businesses are charged to UCC. The master services agreement cost allocation basis is headcount and includes a 10 percent service fee. This agreement resulted in expense of approximately $26 million in 2014, $25 million in 2013 and $32 million in 2012 for general administrative and overhead

52

type services and the 10 percent service fee, included in “Sundry income (expense) - net” in the consolidated statements of operations. The decrease in general administrative and overhead type services from 2012, including the service fee, was due to a simplification of the cost structure as well as cost reduction initiatives by Dow. The remaining activity-based costs were approximately $53 million in 2014, $46 million in 2013 and $51 million in 2012 and were included in “Cost of sales” in the consolidated statements of operations.

Management believes the method used for determining expenses charged by Dow is reasonable. Dow provides these services by leveraging its centralized functional service centers to provide services at a cost that management believes provides an advantage to the Corporation.

The monitoring and execution of risk management policies related to interest rate and foreign currency risks, which are based on Dow’s risk management philosophy, are provided as a service to UCC.

As part of Dow’s cash management process, UCC is a party to revolving loans with Dow that have interest rates based on LIBOR (London Interbank Offered Rate) with varying maturities. At December 31, 2014, the Corporation had a note receivable of $1.2 billion ($2.4 billion at December 31, 2013) from Dow under a revolving loan agreement. The Corporation may draw from this note receivable in support of its daily working capital requirements and, as such, the net effect of cash inflows and outflows under this revolving loan agreement is presented in the consolidated statements of cash flows as an operating activity.

The Corporation also has a separate revolving credit agreement with Dow that allows the Corporation to borrow or obtain credit enhancements up to an aggregate of $1 billion that matures on December 30, 2015. Dow may demand repayment with a 30-day written notice to the Corporation, subject to certain restrictions. A related collateral agreement provides for the replacement of certain existing pledged assets, primarily equity interests in various subsidiaries and joint ventures, with cash collateral. At December 31, 2014, $875 million ($843 million at December 31, 2013) was available under the revolving credit agreement. The cash collateral is reported as “Noncurrent receivables from related companies” in the consolidated balance sheets.

Related company accounts payable and accounts receivable between UCC and Dow are settled on a regular basis. As a result of the phased implementation of the Corporation's new ERP system, as well as the implementation of an in-house banking system in the third quarter of 2014, intercompany balances are now settled on a monthly basis instead of throughout the month. As a result of this change, "Accounts receivable - Related companies" and "Accounts payable - Related companies" in the consolidated balance sheets reflect an increase when compared with previous years.

In October 2014, UCC authorized a distribution to Dow of its shares of common stock in GWN Holdings, Inc. ("GWN"). Prior to the stock distribution, GWN was owned 6.3 percent by UCC and 93.7 percent by Dow and its other wholly-owned subsidiaries. Prior to this distribution, UCC's investment in GWN was $10 million, accounted for as a cost method investment, and included in "Investments in related companies" in the consolidated balance sheets. No gain or loss was recorded on the stock distribution.

The Corporation recorded an impairment charge of $25 million in the fourth quarter of 2013 for the full value of the cost method investment in Dow Quimica Argentina S.A., a related company. The impairment charge, triggered by ongoing losses in the entity, is included in "Sundry income (expense) - net" in the consolidated statements of operations.

In the fourth quarter of 2012, UCC recorded an impairment charge of $131 million related to its investment in Modeland International Holdings Inc. ("Modeland"), a related company, representing the difference between the investment's cost and its fair value. The impairment was triggered by an ownership reorganization of Modeland's subsidiaries. The amount of the impairment charge was calculated based on an appraisal of the fair value of Modeland's assets and liabilities. The fair value was determined through the use of both income and market valuation approaches. The impairment charge is included in "Sundry income (expense) -net" in the consolidated statements of operations. Subsequent to recording the impairment charge, the Corporation also declared and paid a stock dividend to Dow for its ownership interest in Modeland totaling $9 million.

On a quarterly basis, the Corporation's Board of Directors reviews and approves a dividend distribution to its parent company and sole shareholder, Dow. The Board takes into consideration the level of earnings and cash flows, among other factors, in determining the amount of the dividend distribution. During 2014, the Corporation declared and paid dividends totaling $1.3 billion to Dow. In September 2013, UCC declared a stock dividend to Dow of its 100 percent ownership interest in Union Carbide Subsidiary C, Inc., which included UCC's full ownership interest in Univation. This stock dividend was effective on September 29, 2013 and totaled $70 million. During 2013, the Corporation declared and paid dividends totaling $661 million to Dow, which included cash dividends to Dow totaling $591 million.

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The Corporation received cash dividends of $12 million from its related company investments in 2014 ($16 million in 2013 and $25 million in 2012). These dividends were included in "Sundry income (expense) - net" in the consolidated statements of operations.

In the third quarter of 2014, as part of a sale-leaseback transaction entered into by Dow for a significant portion of Dow's North America railcar fleet, UCC sold all of the railcars owned by UCC to Dow at fair value for $145 million in cash. The sale of the railcars resulted in a pretax gain of $66 million, and is included in "Sundry income (expense) - net" in the consolidated statements of operations.

In accordance with the Tax Sharing Agreement between the Corporation and Dow, the Corporation makes payments to Dow to cover the Corporation's estimated federal tax liability; payments were $579 million in 2014, $163 million in 2013 and zero in 2012.

NOTE 18 - INCOME TAXES

Domestic and Foreign Components of Income (Loss) Before Income Taxes
In millions	2014			2013			2012
Domestic (1)	$	896		$	1,077		$	(95	)
Foreign	(5		)	(10		)	(2		)
Total	$	891		$	1,067		$	(97	)

(1) In 2013, the domestic component of "Income Before Income Taxes" included a gain of $368 million for the sale of Dow's Polypropylene Licensing and Catalysts business.

Provision for Income Taxes
				2014						2013									2012
In millions	Current			Deferred		Total		Current		Deferred			Total			Current			Deferred			Total
Federal (1)	$	(41	)	$	311	$	270	$	337	$	18		$	355		$	10		$	15		$	25
State and local	(5		)	38		33		5		(47		)	(42		)	(5		)	(3		)	(8		)
Foreign	1			—		1		6		—			6			—			—			—
Total	$	(45	)	$	349	$	304	$	348	$	(29	)	$	319		$	5		$	12		$	17

(1) Reflects the 2014 impact of accelerated deductions.

Reconciliation to U.S. Statutory Rate
In millions	2014			2013			2012
Taxes at U.S. statutory rate	$	312		$	374		$	(34	)
Equity earnings effect	(4		)	(1		)	2
U.S. manufacturing deductions	(26		)	(7		)	—
Benefit of dividend income from investments in related companies	—			(6		)	(9		)
Audit settlement and court case impact	—			20			—
Unrecognized tax benefits	—			(30		)	9
Impairment of investment in related company	—			1			46
Federal tax accrual adjustments	(14		)	(5		)	(8		)
State and local tax impact	42			(38		)	12
Other - net	(6		)	11			(1		)
Total tax provision	$	304		$	319		$	17
Effective tax rate	34.1		%	29.9		%	(17.5		)%

The tax rate for 2014 was unfavorably impacted by changes in valuation allowances on state income tax attributes, partially offset by favorable manufacturing deductions in the United States. UCC's reported effective tax rate for 2014 was 34.1 percent.

The tax rate for 2013 was favorably impacted by changes in valuation allowances in the United States on state income tax attributes, audit settlements and remeasurement of tax positions. The 2013 tax rate was unfavorably impacted by an unfavorable court ruling in the first quarter of 2013. UCC's reported effective tax rate for 2013 was 29.9 percent.

54

The tax rate for 2012 was unfavorably impacted primarily by the minimal tax relief related to the impairment of the investment in related company and the inability to utilize state tax credits. UCC's reported effective tax rate for 2012 was negative 17.5 percent.

Deferred Tax Balances at December 31	2014					2013
In millions	Deferred Tax Assets			Deferred Tax Liabilities		Deferred Tax Assets			Deferred Tax Liabilities
Property	$	—		$	197	$	—		$	235
Tax loss and credit carryforwards	82			—		95			—
Postretirement benefit obligations	818			420		706			440
Other accruals and reserves (1)	263			3		656			4
Inventory	53			—		30			—
Long-term debt	—			—		—			1
Investments	—			1		7			—
Other - net	2			—		2			1
Subtotal	$	1,218		$	621	$	1,496		$	681
Valuation allowances	(53		)	—		(50		)	—
Total	$	1,165		$	621	$	1,446		$	681

(1) The reduction in 2014 reflects the impact of accelerated deductions.

Gross operating loss carryforwards, primarily related to state operating losses, amounted to $1,035 million at December 31, 2014, compared with $1,188 million at the end of 2013. At December 31, 2014, $530 million of the operating loss carryforwards were subject to expiration in the years 2015 through 2019. The remaining balances expire in years beyond 2019 or have an indefinite carryforward period. Tax credit carryforwards amounted to $5 million at December 31, 2014 and $7 million at December 31, 2013, which all expire in years beyond 2019 or have an indefinite carryforward period.

Undistributed earnings of foreign subsidiaries and related companies that are deemed to be permanently invested amounted to $50 million at December 31, 2014, $48 million at December 31, 2013 and $53 million at December 31, 2012. It is not practicable to calculate the unrecognized deferred tax liability on those earnings.

The Corporation had valuation allowances that were primarily related to the realization of recorded tax benefits on state tax loss carryforwards from operations in the United States of $53 million at December 31, 2014 and $50 million at December 31, 2013.

Total Gross Unrecognized Tax Benefits
In millions	2014			2013			2012
Balance at January 1	$	4		$	166		$	161
Increases related to positions taken on items from prior years	—			1			—
Decreases related to positions taken on items from prior years	—			(7		)	—
Increases related to positions taken in current year	—			—			8
Settlement of uncertain tax positions with tax authorities	—			(154		)	—
Decreases due to expiration of statutes of limitations	(3		)	(2		)	(3		)
Balance at December 31	$	1		$	4		$	166

At December 31, 2014, the total amount of unrecognized tax benefits was $1 million ($4 million at December 31, 2013), of which $1 million ($3 million at December 31, 2013) would impact the effective tax rate, if recognized.

Interest and penalties associated with unrecognized tax benefits are recognized as components of “Provision for income taxes” in the consolidated statements of operations and was a benefit of $6 million in 2014, $15 million in 2013 and $1 million in 2012. The Corporation's accrual for interest and penalties was zero at December 31, 2014 and a payable of $1 million at December 31, 2013.

During 2013, the U.S. Supreme Court denied certiorari in UCC's research tax credit case. Through the denial of certiorari, the U.S. Court of Appeals decision denying UCC's tax credit claim for supplies used in process-related research and development at its manufacturing facilities became final. As a result of this ruling, UCC reversed the uncertain tax positions related to this matter, which resulted in a decrease to "Other noncurrent obligations" and an increase to "Income taxes payable" in the

55

consolidated balance sheets in accordance with the Tax Sharing Agreement between the Corporation and Dow. In addition, UCC recognized a tax charge of $41 million in the first quarter of 2013 included in "Provision for income taxes" in the consolidated statements of operations. An audit settlement in the second quarter of 2013 resulted in a tax benefit of $22 million, included in "Provision for income taxes" and various balance sheet reclassifications from noncurrent to current accruals and receivables.

Tax years that remain subject to examination for the Corporation's major tax jurisdictions are shown below:

Tax Years Subject to Examination by Major Tax Jurisdiction at December 31
Jurisdiction	Earliest Open Year
	2014	2013
United States:
Federal income tax	2004	2004
State and local income tax	2004	2004

The Corporation is included in Dow's consolidated federal income tax group and consolidated tax return. Current and deferred tax expenses are calculated for the Corporation as a stand-alone group and are allocated to the group from the consolidated totals. UCC is currently under examination in a number of tax jurisdictions, including the U.S. federal and various state jurisdictions. It is reasonably possible that these examinations may be resolved within twelve months. As a result, it is reasonably possible that the total gross unrecognized tax benefits of the Corporation at December 31, 2014, will be reduced by approximately $1 million from resolution of these examinations.

The reserve for non-income tax contingencies related to issues in the United States was zero at December 31, 2014 and zero at December 31, 2013. This is management's best estimate of the potential liability for non-income tax contingencies. Inherent uncertainties exist in estimates of tax contingencies due to changes in tax law, both legislated and concluded through the various jurisdictions' tax court systems. It is the opinion of the Corporation's management that the possibility is remote that costs in excess of those accrued will have a material impact on the Corporation's consolidated financial statements.

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NOTE 19 - ACCUMULATED OTHER COMPREHENSIVE LOSS

The following table provides an analysis of the changes in accumulated other comprehensive loss for the years ended December 31, 2014, 2013 and 2012:

Accumulated Other Comprehensive Loss
In millions	2014			2013			2012
Cumulative Translation Adjustments at beginning of year	$	(78	)	$	(56	)	$	(52	)
Translation adjustments	(1		)	(1		)	(4		)
Reclassification to earnings - Sundry income (expense) - net (1)	16			(21		)	—
Balance at end of period	$	(63	)	$	(78	)	$	(56	)
Pension and Other Postretirement Benefit Plans at beginning of year	$	(967	)	$	(1,289	)	$	(1,080	)
Net gain (loss) during period (net of tax of $(165), $122, $(141)) (2) (3)	(273		)	263			(250		)
Prior service credit arising during the period (net of tax of $13, $-, $-)	25			—			—
Amortization of prior service cost included in net periodic pension costs (net of tax of $2, $2, $2) (2) (3)	4			4			3
Amortization of net loss included in net periodic pension costs (net of tax of $25, $33, $22) (2) (3)	31			55			38
Balance at end of period	$	(1,180	)	$	(967	)	$	(1,289	)
Total accumulated other comprehensive loss	$	(1,243	)	$	(1,045	)	$	(1,345	)

(1) In 2014, reclassification resulted from the divestiture or liquidation of subsidiaries. In 2013, reclassification resulted from the divestiture of a nonconsolidated affiliate.

(2)    See Note 15 for additional information.

(3)    Tax amounts are included in "Provision for income taxes" in the consolidated statements of operations.

NOTE 20 - BUSINESS AND GEOGRAPHIC AREAS

Dow conducts its worldwide operations through global businesses, and the Corporation's business activities comprise components of Dow's global businesses rather than stand-alone operations. The Corporation sells its products to Dow in order to simplify the customer interface process at market-based prices in accordance with Dow's intercompany pricing policy. Because there are no separable reportable business segments for the Corporation and no detailed business information is provided to a chief operating decision maker regarding the Corporation's stand-alone operations, the Corporation's results are reported as a single operating segment.

Sales are attributed to geographic areas based on customer location; long-lived assets are attributed to geographic areas based on asset location. Sales to external customers and long-lived assets by geographic area were as follows:

Geographic Area Information In millions	United States		Asia Pacific		Rest of World		Total
2014
Sales to external customers (1)	$	62	$	1	$	19	$	82
Long-lived assets	$	1,113	$	6	$	33	$	1,152
2013
Sales to external customers (1)	$	100	$	43	$	18	$	161
Long-lived assets	$	1,197	$	6	$	36	$	1,239
2012
Sales to external customers (1)	$	98	$	64	$	15	$	177
Long-lived assets	$	1,287	$	8	$	39	$	1,334

(1) Of the total sales to external customers, China was less than 1 percent in 2014, approximately 21 percent in 2013 and 21 percent in 2012; and Malaysia was less than 1 percent in 2014, approximately 4 percent in 2013 and 10 percent in 2012, both of which are included in Asia Pacific.

57

Union Carbide Corporation and Subsidiaries

PART II, Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

58

Union Carbide Corporation and Subsidiaries

PART II, Item 9A. Controls and Procedures.

ITEM 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by the Annual Report on Form 10-K, the Corporation carried out an evaluation, under the supervision and with the participation of the Corporation's Disclosure Committee and the Corporation's management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of the Corporation's disclosure controls and procedures pursuant to Exchange Act Rule 15d - 15(b). Based upon that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the Corporation's disclosure controls and procedures were effective.

Changes in Internal Control Over Financial Reporting

During 2014, the Corporation completed the implementation of a new enterprise resource planning ("ERP") system that delivered a new generation of information systems and work processes. The Corporation has updated the internal control processes and procedures that have been affected by the ERP system implementation and believes that controls remain effective.

Other than as described above, there were no changes in the Corporation's internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that was conducted during the last fiscal quarter that materially affected or were reasonably likely to materially affect the Corporation's internal control over financial reporting.

Management's Report on Internal Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting. The Corporation's internal control framework and processes are designed to provide reasonable assurance to management and the Board of Directors regarding the reliability of financial reporting and the preparation of the Corporation's consolidated financial statements in accordance with accounting principles generally accepted in the United States of America.

The Corporation's internal control over financial reporting includes those policies and procedures that:

• pertain to the maintenance of records, that in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Corporation;

• provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Corporation are being made only in accordance with authorizations of management and Directors of the Corporation; and

• provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Corporation's assets that could have a material effect on the consolidated financial statements.

Because of its inherent limitations, any system of internal control over financial reporting can provide only reasonable assurance and may not prevent or detect misstatements.

Management assessed the effectiveness of the Corporation's internal control over financial reporting and concluded that, as of December 31, 2014, such internal control is effective. In making the assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") in Internal Control--Integrated Framework (2013).

59

The Corporation's internal control over financial reporting was not subject to attestation by the Corporation's independent registered public accounting firm, Deloitte & Touche LLP, pursuant to the rules of the Securities and Exchange Commission that permit the Corporation to provide only management's report. Therefore, this annual report does not include an attestation report regarding internal controls over financial reporting from Deloitte & Touche LLP.

February 13, 2015

/s/ RICHARD A. WELLS	/s/ IGNACIO MOLINA
Richard A. Wells President and Chief Executive Officer	Ignacio Molina Vice President, Treasurer and Chief Financial Officer
/s/ RONALD C. EDMONDS
Ronald C. Edmonds, Vice President and Controller The Dow Chemical Company Authorized Representative of Union Carbide Corporation

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Union Carbide Corporation and Subsidiaries

PART II, Item 9B. Other Information.

ITEM 9B. OTHER INFORMATION

None.

61

Union Carbide Corporation and Subsidiaries

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Omitted pursuant to General Instruction I of Form 10-K.

ITEM 11. EXECUTIVE COMPENSATION

Omitted pursuant to General Instruction I of Form 10-K.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Omitted pursuant to General Instruction I of Form 10-K.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Omitted pursuant to General Instruction I of Form 10-K.

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

Dow's Audit Committee pre-approves all auditing services and permitted non-audit services (including the fees and terms thereof) to be performed for Dow and its subsidiaries (including the Corporation) by its independent auditor, subject to the de minimus exception for non-audit services described in Section 10A(i)(1)(B) of the Securities Exchange Act, which are approved by Dow's Audit Committee prior to the completion of the audit. The Corporation's management and its Board of Directors subscribe to these policies and procedures. For the years ended December 31, 2014 and 2013, professional services were performed for the Corporation by Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu Limited, and their respective affiliates (collectively, the “Deloitte Entities”).

Total fees paid to the Deloitte Entities were:

In thousands	2014		2013
Audit fees (1)	$	1,635	$	1,576
Audit-related fees	—		94
Total	$	1,635	$	1,670

(1) The aggregate fees billed for the audit of the Corporation's annual financial statements, the reviews of the financial statements in Quarterly Reports on Form 10-Q, statutory audits and other regulatory filings.

62

Union Carbide Corporation and Subsidiaries

PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(a) The following documents are filed as part of this report:

1. The Corporation's 2014 Consolidated Financial Statements and the Report of Independent Registered Public Accounting Firm are included in Item 8 of this Annual Report on Form 10-K.

2. Financial Statement Schedules are omitted because of the absence of the conditions under which they are required or because the information called for is included in the Consolidated Financial Statements or Notes thereto.

3. See the Exhibit Index for exhibits filed with this Annual Report on Form 10-K (see below) and for exhibits incorporated by reference.

The Corporation will provide a copy of any exhibit upon receipt of a written request for the particular exhibit or exhibits desired. All requests should be addressed to the Corporation's principal executive offices (address provided at the end of the Exhibit Index).

The following exhibits listed on the Exhibit Index are filed with this Annual Report on Form 10-K.

Exhibit No.	Description of Exhibit
10.5.12	Twelfth Amendment to the Amended and Restated Revolving Credit Agreement, effective as of December 17, 2014, among the Corporation, The Dow Chemical Company and certain Subsidiary Guarantors.
23	Analysis, Research & Planning Corporation's Consent.
31.1	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.

63

Union Carbide Corporation and Subsidiaries

Trademark Listing

The following trademarks of Union Carbide Corporation or its subsidiaries appear in this report:

CARBOWAX, CELLOSIZE, FLEXOMER, POLYOX, REDI-LINK, SI-LINK, SENTRY, TERGITOL, TRITON, TUFLIN, UCAR, UCARTHERM, UCON, UNIGARD, UNIPOL, UNIPURGE, UNIVAL

The following trademark of The Dow Chemical Company appears in this report: METEOR

The following registered service mark of American Chemistry Council appears in this report: Responsible Care

® ™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow

64

Union Carbide Corporation and Subsidiaries

Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Annual Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized, on the 13th day of February 2015.

UNION CARBIDE CORPORATION
By:	/s/ RONALD C. EDMONDS
	Ronald C. Edmonds, Vice President and Controller The Dow Chemical Company Authorized Representative of Union Carbide Corporation

Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been signed below on the 13th day of February 2015 by the following persons on behalf of the Registrant and in the capacities indicated:

/s/ RICHARD A. WELLS	/s/ GLENN J. MORAN
Richard A. Wells	Glenn J. Moran, Director
President and Chief Executive Officer
/s/ IGNACIO MOLINA	/s/ MARK R. BASSETT
Ignacio Molina Vice President, Treasurer and Chief Financial Officer	Mark R. Bassett, Director
/s/ RONALD C. EDMONDS
Ronald C. Edmonds, Vice President and Controller The Dow Chemical Company Authorized Representative of Union Carbide Corporation

65

Union Carbide Corporation and Subsidiaries

Supplemental Information to be Furnished With Reports Filed Pursuant to Section 15(d) of the Act by Registrants Which Have Not Registered Securities Pursuant to Section 12 of the Act

The Corporation is a wholly owned subsidiary of The Dow Chemical Company ("Dow") and, as such, does not send an annual report to security holders or proxy material with respect to any annual or other meeting of security holders to Dow or any other security holders.

66

Union Carbide Corporation and Subsidiaries

Exhibit Index

EXHIBIT NO.	DESCRIPTION
2.1	Agreement and Plan of Merger dated as of August 3, 1999 among Union Carbide Corporation, The Dow Chemical Company and Transition Sub Inc., incorporated by reference to Exhibit 2 of the Corporation's Current Report on Form 8-K dated August 3, 1999.
2.2	Agreement for the Sale & Purchase of Shares, dated as of August 17, 2009, among Union Carbide Corporation, UCMG L.L.C. and Petroliam Nasional Berhad, incorporated by reference to Exhibit 2.1 of the Corporation's Current Report on Form 8-K dated September 30, 2009.
3.1	Restated Certificate of Incorporation of Union Carbide Corporation under Section 807 of the Business Corporation Law, as filed on May 13, 2008, incorporated by reference to Exhibit 3.1.4 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended June 30, 2008.
3.2	Amended and Restated Bylaws of Union Carbide Corporation, amended as of April 22, 2004, incorporated by reference to Exhibit 3.2 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended March 31, 2004.
4.1	Indenture dated as of June 1, 1995, between the Corporation and the Chase Manhattan Bank (formerly Chemical Bank), Trustee, incorporated by reference to Exhibit 4.1.2 to the Corporation's Form S-3 effective October 13, 1995, Reg. No. 33-60705.
4.2	The Corporation will furnish to the Commission upon request any other debt instrument referred to in Item 601(b)(4)(iii)(A) of Regulation S-K.
10.1	Amended and Restated Service Agreement, effective as of July 1, 2002, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.23 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2002.
10.1.1	Service Addendum No. 2 to the Service Agreement, effective as of August 1, 2001, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.23.2 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2002.
10.1.2	Restated Service Addendum No. 1 to the Service Agreement, effective as of February 6, 2001, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.23.3 of the Corporation's 2002 Form 10-K.
10.1.3	Service Addendum No. 3 to the Amended and Restated Service Agreement, effective as of January 1, 2005, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.1.3 of the Corporation's 2004 Form 10-K.
10.1.4	First Amendment to Amended and Restated Service Agreement, effective as of January 1, 2011, between the Corporation and The Dow Chemical Company incorporated by reference to Exhibit 10.1.4 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended March 31, 2011.
10.2	Second Amended and Restated Sales Promotion Agreement, effective January 1, 2004, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.24 of the Corporation's 2003 Form 10-K.
10.2.1	First Amendment to Second Amended and Restated Sales Promotion Agreement, effective as of March 22, 2013, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.2.1 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended March 31, 2013.
10.3	Third Amended and Restated Agreement (to Provide Materials and Services), dated as of March 1, 2008, between the Corporation and Dow Hydrocarbons and Resources LLC, incorporated by reference to Exhibit 10.3 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended March 31, 2008.
10.4	Amended and Restated Tax Sharing Agreement, effective as of February 7, 2001, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.27 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended June 30, 2003.
10.5	Amended and Restated Revolving Credit Agreement dated as of May 28, 2004, among the Corporation, The Dow Chemical Company and certain Subsidiary Guarantors, incorporated by reference to Exhibit 10.28 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended June 30, 2004.
10.5.1	First Amendment dated October 29, 2004 to the Amended and Restated Revolving Credit Agreement, dated as of May 28, 2004, among the Corporation, The Dow Chemical Company and certain Subsidiary Guarantors, incorporated by reference to Exhibit 10.5.1 of the Corporation's 2004 Form 10-K.

67

EXHIBIT NO.	DESCRIPTION
10.5.2	Second Amendment to the Amended and Restated Revolving Credit Agreement, effective as of December 30, 2004, among the Corporation, The Dow Chemical Company and certain Subsidiary Guarantors, incorporated by reference to Exhibit 10.5.2 of the Corporation's 2004 Form 10-K.
10.5.3	Third Amendment to the Amended and Restated Revolving Credit Agreement, dated as of September 30, 2005, among the Corporation, The Dow Chemical Company and certain Subsidiary Guarantors, incorporated by reference to Exhibit 10.5.3 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2005.
10.5.4	Fourth Amendment to the Amended and Restated Revolving Credit Agreement, dated as of September 30, 2006, among the Corporation, The Dow Chemical Company and certain Subsidiary Guarantors, incorporated by reference to Exhibit 10.5.4 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2006.
10.5.5	Fifth Amendment to the Amended and Restated Revolving Credit Agreement, dated as of September 30, 2007, among the Corporation, The Dow Chemical Company and certain Subsidiary Guarantors incorporated by reference to Exhibit 10.5.5 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2007.
10.5.6	Sixth Amendment to the Amended and Restated Revolving Credit Agreement, effective as of September 30, 2008, among the Corporation, The Dow Chemical Company and certain Subsidiary Guarantors, incorporated by reference to Exhibit 10.5.6 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2008.
10.5.7	Seventh Amendment to the Amended and Restated Revolving Credit Agreement, effective as of September 30, 2009, among the Corporation, The Dow Chemical Company and certain Subsidiary Guarantors, incorporated by reference to Exhibit 10.5.7 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2009.
10.5.8	Eighth Amendment to the Amended and Restated Revolving Credit Agreement, effective as of September 30, 2010, among the Corporation, The Dow Chemical Company and certain Subsidiary Guarantors, incorporated by reference to Exhibit 10.5.8 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2010.
10.5.9	Ninth Amendment to the Amended and Restated Revolving Credit Agreement, effective as of September 30, 2011, among the Corporation, The Dow Chemical Company and certain Subsidiary Guarantors, incorporated by reference to Exhibit 10.5.9 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2011.
10.5.10	Tenth Amendment to the Amended and Restated Revolving Credit Agreement, effective as of December 6, 2012, among the Corporation, The Dow Chemical Company and certain Subsidiary Guarantors, incorporated by reference to Exhibit 10.5.10 of the Corporation's 2012 10-K.
10.5.11	Eleventh Amendment to the Amended and Restated Revolving Credit Agreement, effective as of December 16, 2013, among the Corporation, The Dow Chemical Company and certain Subsidiary Guarantors, incorporated by reference to Exhibit 10.5.11 of the Corporation's 2013 10-K.
10.5.12	Twelfth Amendment to the Amended and Restated Revolving Credit Agreement, effective as of December 17, 2014, among the Corporation, The Dow Chemical Company and certain Subsidiary Guarantors.
10.6	Amended and Restated Pledge and Security Agreement dated as of May 28, 2004, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.29 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended June 30, 2004.
10.7	Second Amended and Restated Revolving Loan Agreement, effective as of November 1, 2005, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.7 of the Corporation's 2005 Annual Report on Form 10‑K.
10.7.1	First Amendment to Second Amended and Restated Revolving Loan Agreement, effective as of December 31, 2007, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.7.1 of the Corporation's 2007 Annual Report on Form 10-K.
10.7.2	Second Amendment to Second Amended and Restated Revolving Loan Agreement, effective as of August 1, 2009, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.7.2 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2009.
10.7.3	Third Amendment to Second Amended and Restated Revolving Loan Agreement, effective as of February 1, 2010, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.7.3 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2010.

68

EXHIBIT NO.	DESCRIPTION
10.7.4	Fourth Amendment to Second Amended and Restated Revolving Loan Agreement, effective as of August 1, 2010, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.7.4 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2010.
10.7.5	Fifth Amendment to Second Amended and Restated Revolving Loan Agreement, effective as of August 1, 2011, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.7.5 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2011.
10.7.6	Sixth Amendment to Second Amended and Restated Revolving Loan Agreement, effective as of April 1, 2012, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.7.6 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2012.
10.7.7	Seventh Amendment to Second Amended and Restated Revolving Loan Agreement, effective as of August 1, 2013, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.7.7 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2013.
10.9	Contribution Agreement dated as of December 21, 2007, among the Corporation, Dow International Holdings Company and The Dow Chemical Company, incorporated by reference to Exhibit 10.9 of the Corporation's 2007 Annual Report on Form 10‑K.
21	Omitted pursuant to General Instruction I of Form 10‑K.
23	Analysis, Research & Planning Corporation's Consent.
31.1	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.

A copy of any exhibit listed above may be obtained on written request to the Secretary's Office, Union Carbide Corporation, 1254 Enclave Parkway, Houston, Texas, 77077.

69

EX-10.5.12

Union Carbide Corporation and Subsidiaries EXHIBIT 10.5.12

TWELFTH AMENDMENT TO THE

AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT

This Twelfth Amendment to the Amended and Restated Revolving Credit Agreement (this “Amendment”) is made effective as of December 17, 2014 and is entered into among Union Carbide Corporation, as Borrower (“Borrower”), The Dow Chemical Company, as Lender (“Lender”) and Union Carbide Chemicals & Plastics Technology LLC as the Subsidiary Guarantor (the “Subsidiary Guarantor”) (together, the “Parties”).

BACKGROUND

The Parties have entered into the Amended and Restated Revolving Credit Agreement dated as of May 28, 2004, as amended by the First Amendment to the Amended and Restated Revolving Credit Agreement dated October 29, 2004, the Second Amendment to the Amended and Restated Revolving Credit Agreement dated December 30, 2004, the Third Amendment to the Amended and Restated Revolving Credit Agreement dated September 30, 2005, the Fourth Amendment to the Amended and Restated Revolving Credit Agreement dated September 30, 2006, the Fifth Amendment to the Amended and Restated Revolving Credit Agreement dated September 30, 2007, the Sixth Amendment to the Amended and Restated Revolving Credit Agreement dated September 30, 2008, the Seventh Amendment to the Amended and Restated Revolving Credit Agreement dated September 30, 2009, and the Eighth Amendment to the Amended and Restated Revolving Credit Agreement dated September 30, 2010, the Ninth Amendment to the Amended and Restated Revolving Credit Agreement dated September 30, 2011, the Tenth Amendment to the Amended and Restated Revolving Credit Agreement dated December 6, 2012, and the Eleventh Amendment to the Amended and Restated Revolving Credit Agreement dated December 16, 2013 (the “Credit Agreement”). Union Carbide Subsidiary C is no longer a Subsidiary Guarantor under this Credit Agreement as it is no longer a wholly owned subsidiary of Borrower.

The Parties desire to amend the Credit Agreement according to the terms in this Amendment. Any capitalized terms used in this Amendment, but not otherwise defined in this Amendment, are as defined in the Credit Agreement.

THE AGREEMENT

1.    Amendment to Section 1.1. The Parties agree to amend Section 1.1 of the Credit Agreement by

Replacing the definition of “Scheduled Termination Date” with the following definition:

“Scheduled Termination Date” means December 30, 2015.

2.    No Other Amendment or Waiver. Except as expressly amended by this Amendment, the Credit

Agreement and all other Loan Documents remain in full force and effect in accordance with their

terms, and the Parties ratify and confirm the Credit Agreement and all other Loan Documents in

    all respects.

3.    Execution in Counterparts. This amendment may be executed in any number of counterparts and

and by different parties in separate counterparts, each of which when so executed will be deemed

to be an original and all of which taken together will constitute one and the same agreement.

Signature pages may be detached from multiple separate counterparts and attached to a single

counterpart so that all signature pages are attached to the same document.

4.    Governing Law. This Amendment and the rights and obligation of the Parties to this Amendment

[Signature pages follow]

70

Union Carbide Corporation and Subsidiaries EXHIBIT 10.5.12

will be governed by, and construed and interpreted in accordance with, the law of the State of New York.

5. Subsidiary Guarantor. The Guarantor to this Agreement will only be bound by its guarantee if it remains a wholly owned subsidiary of the Borrower.

The Parties agree that this Amendment is effective as of December 16, 2014, and they have caused their authorized representatives to execute this Amendment below.

LENDER:	SUBSIDIARY GUARANTOR:
THE DOW CHEMICAL COMPANY	UNION CARBIDE CHEMICALS &
	PLASTICS TECHNOLOGY LLC
By: /s/ FERNANDO RUIZ	By: /s/ MARK A WHITEMAN
Name: Fernando Ruiz	Name: Mark A. Whiteman
Title: Corporate Vice President and Treasurer	Title: Vice President
BORROWER:
UNION CARBIDE CORPORATION
By: /s/ IGNACIO MOLINA
Name: Ignacio Molina
Title: Chief Financial Officer, Vice President, and Treasurer

Signature Page

Twelve Amendment to the Amended and Restated Revolving Credit Agreement

71

EX-23

Analysis, Research & Planning Corporation's Consent EXHIBIT 23

Union Carbide Corporation:

Analysis, Research & Planning Corporation (“ARPC”) hereby consents to the use of ARPC's name and the reference to ARPC's reports appearing in this Annual Report on Form 10-K of Union Carbide Corporation for the year ended December 31, 2014.

/s/ B. Thomas Florence

B. Thomas Florence

President

Analysis, Research & Planning Corporation

February 11, 2015

72

EX-31.1

Union Carbide Corporation and Subsidiaries EXHIBIT 31.1

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Richard A. Wells, certify that:

1. I have reviewed this annual report on Form 10-K of Union Carbide Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 13, 2015

/s/ RICHARD A. WELLS

Richard A. Wells

President and Chief Executive Officer

73

EX-31.2

Union Carbide Corporation and Subsidiaries EXHIBIT 31.2

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Ignacio Molina, certify that:

1. I have reviewed this annual report on Form 10-K of Union Carbide Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 13, 2015

/s/ IGNACIO MOLINA

Ignacio Molina

Vice President, Treasurer and

Chief Financial Officer

74

EX-32.1

Union Carbide Corporation and Subsidiaries EXHIBIT 32.1

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

I, Richard A. Wells, President and Chief Executive Officer of Union Carbide Corporation (the “Corporation”), certify that:

1. the Annual Report on Form 10-K of the Corporation for the year ended December 31, 2014 as filed with the Securities and Exchange Commission (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

/s/ RICHARD A. WELLS

Richard A. Wells

President and Chief Executive Officer

February 13, 2015

75

EX-32.2

Union Carbide Corporation and Subsidiaries EXHIBIT 32.2

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

I, Ignacio Molina, Vice President, Treasurer and Chief Financial Officer of Union Carbide Corporation (the “Corporation”), certify that:

1. the Annual Report on Form 10-K of the Corporation for the year ended December 31, 2014 as filed with the Securities and Exchange Commission (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

/s/ IGNACIO MOLINA

Ignacio Molina

Vice President, Treasurer and

Chief Financial Officer

February 13, 2015

76

XML

NOTES PAYABLE AND LONG-TERM DEBT (Tables)

12 Months Ended

Dec. 31, 2014

Debt Instrument [Line Items]

Schedule of Maturities of Long-term Debt [Table Text Block]

Annual Installments on Long-Term Debt for Next Five Years In millions
2015	$	1
2016	$	1
2017	$	1
2018	$	1
2019	$	1

Schedule of Short-term Debt [Table Text Block]

Notes Payable at December 31 In millions	2014			2013
Notes payable - related companies	$	43		$	34
Year-end average interest rates	0.82		%	0.92		%

Schedule of Long-term Debt Instruments [Table Text Block]

Long-Term Debt at December 31	2014					2013
	Average					Average
In millions	Rate		2014			Rate		2013
Promissory notes and debentures:
Debentures due 2023	7.875	%	$	175		7.875	%	$	175
Debentures due 2025	6.79	%	12			6.79	%	12
Debentures due 2025	7.50	%	150			7.50	%	150
Debentures due 2096	7.75	%	135			7.75	%	135
Capital lease obligations	—		11			—		—
Unamortized debt discount	—		(1		)	—		(1		)
Long-term debt due within one year	—		(1		)	—		—
Total long-term debt			$	481				$	471

XML

INVESTMENTS IN RELATED COMPANIES (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended					3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013		Dec. 31, 2012		Dec. 31, 2013	Sep. 30, 2014
Schedule of Cost-method Investments [Line Items]
Investments in related companies	$ 813	$ 823				$ 823
Cost-method Investments, Other than Temporary Impairment	0	25	[1]	131	[1]
Dow International Holdings Company [Member]
Schedule of Cost-method Investments [Line Items]
Ownership Interest Percentage, Related Company	19.00%	19.00%				19.00%
Cost Method Investments	807	807				807
Dow Quimica Argentina S.A. [Member]
Schedule of Cost-method Investments [Line Items]
Ownership Interest Percentage, Related Company	23.00%	23.00%				23.00%
Cost Method Investments	0	0				0
Dow Quimica Mexicana S.A. de C.V. [Member]
Schedule of Cost-method Investments [Line Items]
Ownership Interest Percentage, Related Company	15.00%	15.00%				15.00%
Cost Method Investments	5	5				5
GWN Holding, Inc. [Member]
Schedule of Cost-method Investments [Line Items]
Ownership Interest Percentage, Related Company	0.00%	6.00%				6.00%	6.30%
Cost Method Investments	0	10				10	10
Other Investments [Member]
Schedule of Cost-method Investments [Line Items]
Ownership Interest Percentage, Related Company		0.00%				0.00%
Cost Method Investments	1	1				1
Fair Value, Inputs, Level 3 [Member] | Dow Quimica Argentina S.A. [Member] | Fair Value, Measurements, Nonrecurring [Member]
Schedule of Cost-method Investments [Line Items]
Cost-method Investments, Other than Temporary Impairment						$ 25
The Dow Chemical Company [Member] | GWN Holding, Inc. [Member]
Schedule of Cost-method Investments [Line Items]
Ownership Interest Percentage, Related Company							93.70%

[1] See Note 17 for additional information.

XML

DIVESTITURES DIVESTITURES (Polypropylene Licensing and Catalysts Business) (Details) (Polypropylene Licensing and Catalyst Business [Member], USD $) In Millions, unless otherwise specified	3 Months Ended		12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012	Dec. 02, 2013
Polypropylene Licensing and Catalyst Business [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net								$ 4
Disposal Group, Including Discontinued Operation, Inventory								19
Assets divested, net property								7
Assets, total assets divested								30
Proceeds from Divestiture of Businesses		398	4	[1]	368	[1]	0
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal	4	368
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Net of Tax	$ 3	$ 233

[1] See Note 4 for additional information.

XML

NOTES PAYABLE AND LONG-TERM DEBT (Schedule of Annual Installments) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014
Annual Installments [Abstract]
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months	$ 1
Long-term Debt, Maturities, Repayments of Principal in Year Two	1
Long-term Debt, Maturities, Repayments of Principal in Year Three	1
Long-term Debt, Maturities, Repayments of Principal in Year Four	1
Long-term Debt, Maturities, Repayments of Principal in Year Five	$ 1

XML

INTANGIBLE ASSETS (Intangible Assets) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 88	$ 82
Finite-Lived Intangible Assets, Accumulated Amortization	(73)	(72)
Finite-Lived Intangible Assets, Net	15	10
Licensing Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	33	33
Finite-Lived Intangible Assets, Accumulated Amortization	(33)	(33)
Finite-Lived Intangible Assets, Net	0	0
Software [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	55	49
Finite-Lived Intangible Assets, Accumulated Amortization	(40)	(39)
Finite-Lived Intangible Assets, Net	$ 15	$ 10

XML

PENSION PLANS AND OTHER POST RETIREMENT BENEFITS (Fair Value of Level 3 Pension Plan Assets) (Details) (Defined Benefit Pension Plans [Member], USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Pension Plan, Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value of Plan Assets, Beginning			$ 3,548
Fair Value of Plan Assets, Ending	3,543	3,586	3,548
Fair Value, Inputs, Level 3 [Member]
Pension Plan, Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value of Plan Assets, Beginning	661	594
Relating to assets held during the period	(24)	20
Relating to assets sold during the period	35	40
Purchases, sales, and settlements	77	7
Transfers into Level 3, net	(1)
Fair Value of Plan Assets, Ending	746	661
Defined Benefit Plan, Foreign Currency Exchange Rate Gain (Loss)	(2)
Equity Securities [Member]
Pension Plan, Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value of Plan Assets, Ending	869	985
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Pension Plan, Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value of Plan Assets, Beginning	2	3
Relating to assets held during the period	(2)	(2)
Relating to assets sold during the period	0	0
Purchases, sales, and settlements	4	1
Transfers into Level 3, net	0
Fair Value of Plan Assets, Ending	4	2
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Plan Assets	0
Fixed Income Securities [Member]
Pension Plan, Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value of Plan Assets, Ending	1,708	1,510
Fixed Income Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Pension Plan, Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value of Plan Assets, Beginning	14	17
Relating to assets held during the period	0	0
Relating to assets sold during the period	0	0
Purchases, sales, and settlements	20	(3)
Transfers into Level 3, net	(1)
Fair Value of Plan Assets, Ending	33	14
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Plan Assets	0
Alternative Investments [Member]
Pension Plan, Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value of Plan Assets, Ending	813	750
Alternative Investments [Member] | Fair Value, Inputs, Level 3 [Member]
Pension Plan, Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value of Plan Assets, Beginning	623	552
Relating to assets held during the period	(22)	22
Relating to assets sold during the period	35	40
Purchases, sales, and settlements	53	9
Transfers into Level 3, net	0
Fair Value of Plan Assets, Ending	687	623
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Plan Assets	(2)
Other Investment Plan Assets [Member] | Fair Value, Inputs, Level 3 [Member]
Pension Plan, Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value of Plan Assets, Beginning	22	22
Relating to assets held during the period	0	0
Relating to assets sold during the period	0	0
Purchases, sales, and settlements	0	0
Transfers into Level 3, net	0
Fair Value of Plan Assets, Ending	22	22
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Plan Assets	$ 0

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	12 Months Ended
	Dec. 31, 2014 years	Dec. 31, 2013	Dec. 31, 2012
Accounting Policies [Abstract]
Amortization Period for Cost Capitalized on Asset Retirement Obligations	10
Sales Revenue, Goods, Net, Percentage	99.00%	97.00%	96.00%
Sales Revenue, Non Goods, Net, Percentage	1.00%	3.00%	4.00%

XML

NONCONSOLIDATED AFFILIATES (Tables)

12 Months Ended

Dec. 31, 2014

Nonconsolidated Affiliates [Abstract]

Equity Method Investments [Table Text Block]

Principal Nonconsolidated Affiliates at December 31	Ownership Interest
	2014	2013	2012
Nippon Unicar Company Limited	—%	—%	50%
Univation Technologies, LLC	—%	—%	50%

Equity Method Investment Summarized Income Statement information [Table Text Block]

Summarized Income Statement Information
In millions	2014		2013 (1)		2012
Sales	$	—	$	452	$	773
Gross profit	$	—	$	208	$	209
Net income	$	—	$	142	$	112

(1) Income statement information for NUC is for the six-month period ended June 30, 2013 and income statement information for Univation is for the nine-month period ended September 30, 2013.

XML

LEASED PROPERTY (Leased Property) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Leases [Abstract]
Leases, Rental Expense	$ 27	$ 31	$ 35
Operating Leases, Future Minimum Payments Due [Abstract]
Future minimum operating lease commitments due during 2015	7
Future minimum operating lease commitments due during 2016	5
Future minimum operating lease commitments due during 2017	4
Future minimum operating lease commitments due during 2018	3
Future minimum operating lease commitments due during 2019	2
Future minimum operating lease commitments due during 2020 and thereafter	8
Total future minimum operating lease commitments	$ 29

XML

PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Net Periodic Benefit Cost and Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income for All Significant Plans) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 30	$ 31	$ 28
Interest cost	183	165	189
Expected return on plan assets	(232)	(232)	(235)
Defined Benefit Plan, Amortization of Prior Service Cost (Credit)	6	7	7
Amortization of net loss	66	88	60
Net periodic benefit cost (credit)	53	59	49
Net (gain) loss	450	(283)	375
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Prior Service Cost (Credit), before Tax	(38)	0	0
Amortization of prior service (cost) credit	(6)	(7)	(7)
Amortization of net loss	(66)	(88)	(60)
Total recognized in other comprehensive (income) loss	340	(378)	308
Total recognized in net periodic benefit cost and other comprehensive loss	393	(319)	357
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	1	2	2
Interest cost	13	14	17
Expected return on plan assets	0	0	0
Defined Benefit Plan, Amortization of Prior Service Cost (Credit)	0	(1)	(2)
Amortization of net loss	(10)	0	0
Net periodic benefit cost (credit)	4	15	17
Net (gain) loss	(12)	(102)	16
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Prior Service Cost (Credit), before Tax	0	0	0
Amortization of prior service (cost) credit	0	1	2
Amortization of net loss	10	0	0
Total recognized in other comprehensive (income) loss	(2)	(101)	18
Total recognized in net periodic benefit cost and other comprehensive loss	$ 2	$ (86)	$ 35

XML

INTANGIBLE ASSETS (Schedule of Future Amortization Expense of Intangible Assets) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Estimated Amortization Expense, 2015	$ 2
Estimated Amortization Expense, 2016	3
Estimated Amortization Expense, 2017	3
Estimated Amortization Expense, 2018	3
Estimated Amortization Expense, 2019	$ 2

XML

PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Plan Assets) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Target Plan Asset Allocations	100.00%
Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Actuarial Gain (Loss)	$ 531	$ (342)
Fair value of plan assets	3,543	3,586	3,548
2014 SOA Mortality Change [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Actuarial Gain (Loss)	139
Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Target Plan Asset Allocations	23.00%
Equity Securities [Member] | Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	869	985
Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Target Plan Asset Allocations	45.00%
Debt Securities [Member] | Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	32	12
Alternative Investments [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Target Plan Asset Allocations	27.00%
Alternative Investments [Member] | Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 813	$ 750
Other Pension Plan Asset Category [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Target Plan Asset Allocations	5.00%

XML

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012		Dec. 31, 2011
Stockholders' Equity Attributable to Parent	$ 2,809		$ 3,709
Translation adjustments	15		(22)		(4)
Accumulated Other Comprehensive Income (Loss) [Member]
Stockholders' Equity Attributable to Parent	(1,243)		(1,045)		(1,345)		(1,132)
Accumulated Translation Adjustment [Member]
Stockholders' Equity Attributable to Parent	(63)		(78)		(56)		(52)
Translation adjustments	(1)		(1)		(4)
Accumulated Defined Benefit Plans and Other Post Retirement Adjustment [Member]
Stockholders' Equity Attributable to Parent	(1,180)		(967)		(1,289)		(1,080)
Net gain (loss) during period (net of tax of $122, $(141), $(84))	(273)	[1],[2]	263	[1],[2]	(250)	[1],[2]
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax	25	[1],[2]	0	[1],[2]	0	[1],[2]
Amortization of prior service cost included in net periodic pension costs (net of tax of $2, $2, $2)	(4)	[1],[2]	(4)	[1],[2]	(3)	[1],[2]
Amortization of net loss included in net periodic pension costs (net of tax of $33, $22, $31)	31	[1],[2]	55	[1],[2]	38	[1],[2]
Impact to Sundry income (expense) [Domain]
Reclassification to earnings - Sundry income (expense) - net	$ 16	[3]	$ (21)	[3]	$ 0

[1] See Note 15 for additional information.

[2] Tax amounts are included in "Provision for income taxes" in the consolidated statements of operations.

[3] In 2014, reclassification resulted from the divestiture or liquidation of subsidiaries. In 2013, reclassification resulted from the divestiture of a nonconsolidated affiliate.

XML

INCOME TAXES (Narrative) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended			3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2011
Income Tax Note [Line Items]
Operating loss carryforwards	$ 1,035	$ 1,188				$ 1,035	$ 1,188
Tax credit carryforwards, net of uncertain tax positions	5	7				5	7
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries	50	48	53			50	48
Valuation allowance, deferred tax assets	53	50				53	50
Effective tax rate	34.10%	29.90%	(17.50%)
Unrecognized Tax Benefits	1	4	166			1	4	161
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	1	3				1	3
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense	(6)	(15)	(1)
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	0	1				0	1
Expiration 2015 through 2019 [Domain]
Income Tax Note [Line Items]
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration	530					530
Provision (credit) for income taxes [Domain]
Income Tax Note [Line Items]
Tax charge related to adjusted uncertain tax position					41
Tax Adjustments, Settlements, and Unusual Provisions				(22)
Polypropylene Licensing and Catalyst Business [Member]
Income Tax Note [Line Items]
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal						$ 4	$ 368

XML

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Other (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Tax	$ (165)	$ 122	$ (141)
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Net Prior Service Cost (Credit), Tax	13	0	0
Other Comprehensive Income (Loss), Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service (Cost) Credit, Tax	2	2	2
Other comprehensive income amortization of net loss included in net periodic pension costs, tax	$ (25)	$ (33)	$ (22)

XML

PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Basis of Fair Value Measurements of Pension Plan Assets) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 3,543	$ 3,586	$ 3,548
Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	569	691
Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	2,228	2,234
Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	746	661	594
Other Postretirement Benefit Plans, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0	0
Cash and Cash Equivalents [Member] | Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	134	307
Cash and Cash Equivalents [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	3	3
Cash and Cash Equivalents [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	131	304
Cash and Cash Equivalents [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Equity Securities [Member] | Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	869	985
Equity Securities [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	566	688
Equity Securities [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	299	295
Equity Securities [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	4	2	3
U.S. Equity [Member] | Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	439	531
U.S. Equity [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	360	388
U.S. Equity [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	78	143
U.S. Equity [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	1	0
Non-U.S. Equity - Developed Countries [Member] | Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	326	266
Non-U.S. Equity - Developed Countries [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	166	181
Non-U.S. Equity - Developed Countries [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	160	85
Non-U.S. Equity - Developed Countries [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Emerging Markets Equity [Member] | Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	105	188
Emerging Markets Equity [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	40	119
Emerging Markets Equity [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	62	67
Emerging Markets Equity [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	3	2
Equity Derivatives [Member] | Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	(1)
Equity Derivatives [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0
Equity Derivatives [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	(1)
Equity Derivatives [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0
Fixed Income Securities [Member] | Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	1,708	1,510
Fixed Income Securities [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Fixed Income Securities [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	1,675	1,496
Fixed Income Securities [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	33	14	17
U.S. government and municipalities [Member] | Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	673	606
U.S. government and municipalities [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
U.S. government and municipalities [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	673	606
U.S. government and municipalities [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
U.S. agency and agency mortgage backed securities [Member] | Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	66	63
U.S. agency and agency mortgage backed securities [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
U.S. agency and agency mortgage backed securities [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	66	63
U.S. agency and agency mortgage backed securities [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Corporate Bonds - Investment Grade [Member] | Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	743	635
Corporate Bonds - Investment Grade [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Corporate Bonds - Investment Grade [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	743	635
Corporate Bonds - Investment Grade [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Non-U.S. Governments - Developed Countries [Member] | Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	6	2
Non-U.S. Governments - Developed Countries [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Non-U.S. Governments - Developed Countries [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	6	2
Non-U.S. Governments - Developed Countries [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Non-U.S. Corporate Bonds - Developed Countries [Member] | Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	160	159
Non-U.S. Corporate Bonds - Developed Countries [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Non-U.S. Corporate Bonds - Developed Countries [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	160	159
Non-U.S. Corporate Bonds - Developed Countries [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Emerging Market Debt [Member] | Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	14	22
Emerging Market Debt [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Emerging Market Debt [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	14	22
Emerging Market Debt [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Other Asset-backed Securities [Member] | Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	12	11
Other Asset-backed Securities [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Other Asset-backed Securities [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	11	9
Other Asset-backed Securities [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	1	2
Other Fixed Income Funds [Member] | Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	32	12
Other Fixed Income Funds [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Other Fixed Income Funds [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Other Fixed Income Funds [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	32	12
High Yield Bonds [Member] | Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	2	3
High Yield Bonds [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
High Yield Bonds [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	2	3
High Yield Bonds [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Alternative Investments [Member] | Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	813	750
Alternative Investments [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Alternative Investments [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	126	127
Alternative Investments [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	687	623	552
Real Estate [Member] | Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	288	292
Real Estate [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Real Estate [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Real Estate [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	288	292
Private Equity [Member] | Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	233	228
Private Equity [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Private Equity [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Private Equity [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	233	228
Absolute Return [Member] | Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	292	230
Absolute Return [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Absolute Return [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	126	127
Absolute Return [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	166	103
Other Securities [Member] | Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	19	34
Other Securities [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Other Securities [Member] | Defined Benefit Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	(3)	12
Other Securities [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 22	$ 22

XML

PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Pension Plans) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Defined Benefit Plan Disclosure [Line Items]
Pension contributions	$ 2	$ 158	$ 158
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Projected Benefit Obligation	4,345	3,995
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Accumulated Benefit Obligation	4,302	3,963
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Fair Value of Plan Assets	3,543	3,586
Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Actuarial Gain (Loss)	531	(342)
Defined Benefit Plan, Benefit Obligation	4,345	3,995	4,433
Discount rate - benefit obligations	3.90%	4.75%	3.85%
Rate of increase in future compensation levels - benefit obligations	4.50%	4.50%	4.50%
Discount rate - net periodic costs	4.75%	3.85%	4.85%
Rate of increase in future compensation levels - net periodic costs	4.50%	4.50%	4.50%
Expected long-term rate of return on plan assets - net periodic costs	6.80%	6.90%	6.90%
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year	2
2014 SOA Mortality Change [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Actuarial Gain (Loss)	$ 139
Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate Support, Bond Indices	60
Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate Support, Bond Indices	90

XML

INCOME TAXES

12 Months Ended

Dec. 31, 2014

Income Tax Expense (Benefit), Continuing Operations [Abstract]

Income Tax Disclosure [Text Block]

INCOME TAXES

Domestic and Foreign Components of Income (Loss) Before Income Taxes
In millions	2014			2013			2012
Domestic (1)	$	896		$	1,077		$	(95	)
Foreign	(5		)	(10		)	(2		)
Total	$	891		$	1,067		$	(97	)

(1) In 2013, the domestic component of "Income Before Income Taxes" included a gain of $368 million for the sale of Dow's Polypropylene Licensing and Catalysts business.

Provision for Income Taxes
				2014						2013									2012
In millions	Current			Deferred		Total		Current		Deferred			Total			Current			Deferred			Total
Federal (1)	$	(41	)	$	311	$	270	$	337	$	18		$	355		$	10		$	15		$	25
State and local	(5		)	38		33		5		(47		)	(42		)	(5		)	(3		)	(8		)
Foreign	1			—		1		6		—			6			—			—			—
Total	$	(45	)	$	349	$	304	$	348	$	(29	)	$	319		$	5		$	12		$	17

(1) Reflects the 2014 impact of accelerated deductions.

Reconciliation to U.S. Statutory Rate
In millions	2014			2013			2012
Taxes at U.S. statutory rate	$	312		$	374		$	(34	)
Equity earnings effect	(4		)	(1		)	2
U.S. manufacturing deductions	(26		)	(7		)	—
Benefit of dividend income from investments in related companies	—			(6		)	(9		)
Audit settlement and court case impact	—			20			—
Unrecognized tax benefits	—			(30		)	9
Impairment of investment in related company	—			1			46
Federal tax accrual adjustments	(14		)	(5		)	(8		)
State and local tax impact	42			(38		)	12
Other - net	(6		)	11			(1		)
Total tax provision	$	304		$	319		$	17
Effective tax rate	34.1		%	29.9		%	(17.5		)%

The tax rate for 2014 was unfavorably impacted by changes in valuation allowances on state income tax attributes, partially offset by favorable manufacturing deductions in the United States. UCC's reported effective tax rate for 2014 was 34.1 percent.

The tax rate for 2013 was favorably impacted by changes in valuation allowances in the United States on state income tax attributes, audit settlements and remeasurement of tax positions. The 2013 tax rate was unfavorably impacted by an unfavorable court ruling in the first quarter of 2013. UCC's reported effective tax rate for 2013 was 29.9 percent.

The tax rate for 2012 was unfavorably impacted primarily by the minimal tax relief related to the impairment of the investment in related company and the inability to utilize state tax credits. UCC's reported effective tax rate for 2012 was negative 17.5 percent.

Deferred Tax Balances at December 31	2014					2013
In millions	Deferred Tax Assets			Deferred Tax Liabilities		Deferred Tax Assets			Deferred Tax Liabilities
Property	$	—		$	197	$	—		$	235
Tax loss and credit carryforwards	82			—		95			—
Postretirement benefit obligations	818			420		706			440
Other accruals and reserves (1)	263			3		656			4
Inventory	53			—		30			—
Long-term debt	—			—		—			1
Investments	—			1		7			—
Other - net	2			—		2			1
Subtotal	$	1,218		$	621	$	1,496		$	681
Valuation allowances	(53		)	—		(50		)	—
Total	$	1,165		$	621	$	1,446		$	681

(1) The reduction in 2014 reflects the impact of accelerated deductions.

Gross operating loss carryforwards, primarily related to state operating losses, amounted to $1,035 million at December 31, 2014, compared with $1,188 million at the end of 2013. At December 31, 2014, $530 million of the operating loss carryforwards were subject to expiration in the years 2015 through 2019. The remaining balances expire in years beyond 2019 or have an indefinite carryforward period. Tax credit carryforwards amounted to $5 million at December 31, 2014 and $7 million at December 31, 2013, which all expire in years beyond 2019 or have an indefinite carryforward period.

Undistributed earnings of foreign subsidiaries and related companies that are deemed to be permanently invested amounted to $50 million at December 31, 2014, $48 million at December 31, 2013 and $53 million at December 31, 2012. It is not practicable to calculate the unrecognized deferred tax liability on those earnings.

The Corporation had valuation allowances that were primarily related to the realization of recorded tax benefits on state tax loss carryforwards from operations in the United States of $53 million at December 31, 2014 and $50 million at December 31, 2013.

Total Gross Unrecognized Tax Benefits
In millions	2014			2013			2012
Balance at January 1	$	4		$	166		$	161
Increases related to positions taken on items from prior years	—			1			—
Decreases related to positions taken on items from prior years	—			(7		)	—
Increases related to positions taken in current year	—			—			8
Settlement of uncertain tax positions with tax authorities	—			(154		)	—
Decreases due to expiration of statutes of limitations	(3		)	(2		)	(3		)
Balance at December 31	$	1		$	4		$	166

At December 31, 2014, the total amount of unrecognized tax benefits was $1 million ($4 million at December 31, 2013), of which $1 million ($3 million at December 31, 2013) would impact the effective tax rate, if recognized.

Interest and penalties associated with unrecognized tax benefits are recognized as components of “Provision for income taxes” in the consolidated statements of operations and was a benefit of $6 million in 2014, $15 million in 2013 and $1 million in 2012. The Corporation's accrual for interest and penalties was zero at December 31, 2014 and a payable of $1 million at December 31, 2013.

During 2013, the U.S. Supreme Court denied certiorari in UCC's research tax credit case. Through the denial of certiorari, the U.S. Court of Appeals decision denying UCC's tax credit claim for supplies used in process-related research and development at its manufacturing facilities became final. As a result of this ruling, UCC reversed the uncertain tax positions related to this matter, which resulted in a decrease to "Other noncurrent obligations" and an increase to "Income taxes payable" in the consolidated balance sheets in accordance with the Tax Sharing Agreement between the Corporation and Dow. In addition, UCC recognized a tax charge of $41 million in the first quarter of 2013 included in "Provision for income taxes" in the consolidated statements of operations. An audit settlement in the second quarter of 2013 resulted in a tax benefit of $22 million, included in "Provision for income taxes" and various balance sheet reclassifications from noncurrent to current accruals and receivables.

Tax years that remain subject to examination for the Corporation's major tax jurisdictions are shown below:

Tax Years Subject to Examination by Major Tax Jurisdiction at December 31
Jurisdiction	Earliest Open Year
	2014	2013
United States:
Federal income tax	2004	2004
State and local income tax	2004	2004

The Corporation is included in Dow's consolidated federal income tax group and consolidated tax return. Current and deferred tax expenses are calculated for the Corporation as a stand-alone group and are allocated to the group from the consolidated totals. UCC is currently under examination in a number of tax jurisdictions, including the U.S. federal and various state jurisdictions. It is reasonably possible that these examinations may be resolved within twelve months. As a result, it is reasonably possible that the total gross unrecognized tax benefits of the Corporation at December 31, 2014, will be reduced by approximately $1 million from resolution of these examinations.

The reserve for non-income tax contingencies related to issues in the United States was zero at December 31, 2014 and zero at December 31, 2013. This is management's best estimate of the potential liability for non-income tax contingencies. Inherent uncertainties exist in estimates of tax contingencies due to changes in tax law, both legislated and concluded through the various jurisdictions' tax court systems. It is the opinion of the Corporation's management that the possibility is remote that costs in excess of those accrued will have a material impact on the Corporation's consolidated financial statements.

XML

PROPERTY (Schedule of Property) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Property	6,831	$ 7,079
Land [Member]
Property, Plant and Equipment [Line Items]
Property	49	51
Land and waterway improvements [Member]
Property, Plant and Equipment [Line Items]
Property	208	204
Buildings [Member]
Property, Plant and Equipment [Line Items]
Property	419	412
Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Property	5,744	5,862
Utility and Supply Lines [Member]
Property, Plant and Equipment [Line Items]
Property	158	157
Other property [Member]
Property, Plant and Equipment [Line Items]
Property	96	291
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property	157	$ 102
Maximum [Member] | Land and waterway improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	25 years
Maximum [Member] | Buildings [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	50 years
Maximum [Member] | Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	20 years
Maximum [Member] | Utility and Supply Lines [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	20 years
Maximum [Member] | Other property [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	30 years
Minimum [Member] | Land and waterway improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	15 years
Minimum [Member] | Buildings [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Minimum [Member] | Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Minimum [Member] | Utility and Supply Lines [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Minimum [Member] | Other property [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years

XML

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Expense (Benefit), Continuing Operations [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

Domestic and Foreign Components of Income (Loss) Before Income Taxes
In millions	2014			2013			2012
Domestic (1)	$	896		$	1,077		$	(95	)
Foreign	(5		)	(10		)	(2		)
Total	$	891		$	1,067		$	(97	)

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Provision for Income Taxes
				2014						2013									2012
In millions	Current			Deferred		Total		Current		Deferred			Total			Current			Deferred			Total
Federal (1)	$	(41	)	$	311	$	270	$	337	$	18		$	355		$	10		$	15		$	25
State and local	(5		)	38		33		5		(47		)	(42		)	(5		)	(3		)	(8		)
Foreign	1			—		1		6		—			6			—			—			—
Total	$	(45	)	$	349	$	304	$	348	$	(29	)	$	319		$	5		$	12		$	17

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Reconciliation to U.S. Statutory Rate
In millions	2014			2013			2012
Taxes at U.S. statutory rate	$	312		$	374		$	(34	)
Equity earnings effect	(4		)	(1		)	2
U.S. manufacturing deductions	(26		)	(7		)	—
Benefit of dividend income from investments in related companies	—			(6		)	(9		)
Audit settlement and court case impact	—			20			—
Unrecognized tax benefits	—			(30		)	9
Impairment of investment in related company	—			1			46
Federal tax accrual adjustments	(14		)	(5		)	(8		)
State and local tax impact	42			(38		)	12
Other - net	(6		)	11			(1		)
Total tax provision	$	304		$	319		$	17
Effective tax rate	34.1		%	29.9		%	(17.5		)%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Deferred Tax Balances at December 31	2014					2013
In millions	Deferred Tax Assets			Deferred Tax Liabilities		Deferred Tax Assets			Deferred Tax Liabilities
Property	$	—		$	197	$	—		$	235
Tax loss and credit carryforwards	82			—		95			—
Postretirement benefit obligations	818			420		706			440
Other accruals and reserves (1)	263			3		656			4
Inventory	53			—		30			—
Long-term debt	—			—		—			1
Investments	—			1		7			—
Other - net	2			—		2			1
Subtotal	$	1,218		$	621	$	1,496		$	681
Valuation allowances	(53		)	—		(50		)	—
Total	$	1,165		$	621	$	1,446		$	681

Schedule of Total Gross Unrecognized Tax Benefits [Table Text Block]

Total Gross Unrecognized Tax Benefits
In millions	2014			2013			2012
Balance at January 1	$	4		$	166		$	161
Increases related to positions taken on items from prior years	—			1			—
Decreases related to positions taken on items from prior years	—			(7		)	—
Increases related to positions taken in current year	—			—			8
Settlement of uncertain tax positions with tax authorities	—			(154		)	—
Decreases due to expiration of statutes of limitations	(3		)	(2		)	(3		)
Balance at December 31	$	1		$	4		$	166

Schedule of Tax Years Subject to Examination by Major Tax Jurisdiction

Tax Years Subject to Examination by Major Tax Jurisdiction at December 31
Jurisdiction	Earliest Open Year
	2014	2013
United States:
Federal income tax	2004	2004
State and local income tax	2004	2004

XML

PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Estimated Future Benefit Payments) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014
Defined Benefit Pension Plans [Member]
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract]
2015	$ 280
2016	278
2017	278
2018	277
2019	277
2020 through 2024	1,361
Total	2,751
Other Postretirement Benefits [Member]
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract]
2015	28
2016	23
2017	21
2018	20
2019	19
2020 through 2024	88
Total	$ 199

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FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]

Basis of Fair Value Measurements on a Nonrecurring Basis in 2012	Significant Other Unobservable Inputs		Total Losses
In millions	(Level 3)		2012
Assets at fair value:
Long-lived assets, other assets and equity method investment	$	42	$	(179	)

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

Basis of Fair Value Measurements on a Recurring Basis at December 31	Significant Other Observable Inputs  (Level 2)		Significant Other Observable Inputs  (Level 2)
In millions	2014		2013
Assets at fair value:
Debt securities (1)	$	5	$	5
Liabilities at fair value:
Long-term debt (2)	$	601	$	556

(1) Included in “Other investments” in the consolidated balance sheets.

(2) See Note 10 for information on fair value measurements of long-term debt.

XML

NONCONSOLIDATED AFFILIATES (Narrative) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended				3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013		Dec. 31, 2012	Sep. 30, 2013	Jun. 30, 2013
Schedule of Equity Method Investments [Line Items]
Investments in nonconsolidated affiliates	$ 13	$ 6
Equity Method Investment, Dividends	0	62		72
Undistributed Earnings of Nonconsolidated Affiliates	7	0
Equity in earnings of nonconsolidated affiliates	7	82		59
Dividend, Noncash, Ownership interest in Subsidiary					70
Principal Nonconsolidated Affiliates [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Summarized Financial Information, Revenue	0	452	[1]	773
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss)	0	208	[1]	209
Equity Method Investment, Summarized Financial Information, Net Income (Loss)	0	142	[1]	112
Investments in nonconsolidated affiliates	0
Equity in earnings of nonconsolidated affiliates	0	84		59
Nippon Unicar Company Limited [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	0.00%	0.00%		50.00%
Univation Technologies, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	0.00%	0.00%		50.00%
Dividend, Noncash, Ownership interest in Subsidiary					70
Union Carbide Subsidiary C, Inc. [Member]
Schedule of Equity Method Investments [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent					100.00%
Nippon Unicar Company Limited [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage						50.00%
Sale price per agreement					13
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax					$ 20

[1] Income statement information for NUC is for the six-month period ended June 30, 2013 and income statement information for Univation is for the nine-month period ended September 30, 2013.

XML

COMMITMENTS AND CONTIGENT LIABILITIES (Purchase Commitments) (Details) (Inventories [Member], USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014
Inventories [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Long-term Purchase Commitment, Time Period (in years)	13 years
Fixed and Determinable Portion of Take or Pay Obligations under Purchase, Due 2015	$ 24
Fixed and Determinable Portion of Take or Pay Obligations under Purchase, Due 2016	22
Fixed and Determinable Portion of Take or Pay Obligations under Purchase, Due 2017	22
Fixed and Determinable Portion of Take or Pay Obligations under Purchase, Due 2018	20
Fixed and Determinable Portion of Take or Pay Obligations under Purchase, Due 2019	18
Fixed and Determinable Portion of Take or Pay Obligations under Purchase, Due 2020 and beyond	47
Fixed and Determinable Portion of Take or Pay Obligations under Purchase, Total	$ 153

XML

FAIR VALUE MEASUREMENTS FAIR VALUE MEASURMENTS (Basis of Fair Value Measurements on a Nonrecurring Basis) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013		Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other than Temporary Impairment Losses, Investments				$ (179)
Impairment of investment in related company	0	25	[1]	131	[1]
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments, Fair Value Disclosure				42
Nippon Unicar Company Limited [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments, Fair Value Disclosure				33
Modeland International Holdings, Inc [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of investment in related company				131
Modeland International Holdings, Inc [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Assets, Fair Value Disclosure				9
4Q12 Restructuring [Member] | Impairment of Long-Lived Assets and Other Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Asset Impairment Charges				$ 48

[1] See Note 17 for additional information.

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RESTRUCTURING (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended			27 Months Ended	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2014 employees	Mar. 31, 2012	Jun. 30, 2013
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ (3)	$ 0	$ 74
4Q12 Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges			71
Charges against reserve			(48)
Charges against reserve	(5)	(8)
Restructuring Reserve	7	15	23	7
Restructuring Reserve, Accrual Adjustment	(3)
4Q12 Restructuring [Member] | Impairment of Long-Lived Assets and Other Assets [Member]
Restructuring Cost and Reserve [Line Items]
Charges against reserve			(48)
Other Asset Impairment Charges			48
Charges against reserve	0	0
Restructuring Reserve	0	0	0	0
Restructuring Reserve, Accrual Adjustment	0
4Q12 Restructuring [Member] | Exit Or Disposal Activities [Member]
Restructuring Cost and Reserve [Line Items]
Charges against reserve			0
Business Exit Costs			13
Charges against reserve	(2)	(2)
Restructuring Reserve	6	11	13	6
Restructuring Reserve, Accrual Adjustment	(3)
4Q12 Restructuring [Member] | Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Number of Positions Eliminated			100
Charges against reserve			0
Severance Costs			10
Charges against reserve	(3)	(6)		(9)
Restructuring Reserve	1	4	10	1
Restructuring Reserve, Accrual Adjustment	0
Entity Number of Employees	9			9
Certain Oxygenated Solvents Manufacturing Facilities in Texas [Member] | Impairment of Long-Lived Assets and Other Assets [Member]
Restructuring Cost and Reserve [Line Items]
Other Asset Impairment Charges			36
Performance monomer manufacturing facility in South Charleston West Virginia [Member] | Impairment of Long-Lived Assets and Other Assets [Member]
Restructuring Cost and Reserve [Line Items]
Other Asset Impairment Charges			1
Other Assets Written-Off associated with Plant Closures [Member]
Restructuring Cost and Reserve [Line Items]
Other Asset Impairment Charges			2
Nippon Unicar Company Limited [Member] | Impairment of Long-Lived Assets and Other Assets [Member]
Restructuring Cost and Reserve [Line Items]
Equity Method Investment, Other than Temporary Impairment			9
Equity Method Investment, Ownership Percentage						50.00%
1Q12 Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges					$ 3
1Q12 Restructuring [Member] | Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Number of Positions Eliminated					20

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RECENT ACCOUNTING GUIDANCE

12 Months Ended

Dec. 31, 2014

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recent Accounting Guidance [Text Block]

RECENT ACCOUNTING GUIDANCE

Recently Adopted Accounting Guidance

During the fourth quarter of 2014, the Corporation adopted Accounting Standard Update ("ASU") 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity," which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. This ASU is effective for fiscal years beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in the financial statements previously issued or available for issuance. The adoption of this standard did not have a material impact on the consolidated financial statements.

Accounting Guidance Issued But Not Adopted as of December 31, 2014

In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," which is the new comprehensive revenue recognition standard that will supersede all existing revenue recognition guidance under U.S. GAAP. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to a customer in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU is effective for annual and interim periods beginning on or after December 15, 2016, and early adoption is not permitted. Entities will have the option of using either a full retrospective approach or a modified approach to adopt the guidance in the ASU. The Corporation is currently evaluating the impact of adopting this guidance.

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SUPPLEMENTARY INFORMATION (Sundry Income, Net) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Supplementary Information [Line Items]
Net gain on sales of property		$ 4	[1]	$ 0		$ 5	[1]
Total sundry income (expense) - net		14		308		(182)
Net gain on sales of railcar fleet		66	[1]	0		0
Reclassification of cumulative translation adjustment		(16)		0		0
Impairment of investment in related company		0		25	[1]	131	[1]
Foreign exchange loss		0		(2)		0
Other - net		(9)		(7)		(14)
Administrative and overhead fees [Member] | The Dow Chemical Company [Member]
Supplementary Information [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party		(26)	[1]	(25)	[1]	(32)	[1]
Net Commission Expense [Member]
Supplementary Information [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party		(21)	[1]	(17)	[1]	(35)	[1]
Dividend Income [Member]
Supplementary Information [Line Items]
Dividend income - related company		12	[1]	16	[1]	25	[1]
Polypropylene Licensing and Catalyst Business [Member]
Supplementary Information [Line Items]
Net gain on sale of Dow's Polypropylene Licensing and Catalysts business	$ 398	$ 4	[2]	$ 368	[2]	$ 0

[1] See Note 17 for additional information.

[2] See Note 4 for additional information.

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

12 Months Ended

Dec. 31, 2014

Accumulated Other Comprehensive Income [Abstract]

Schedule of Comprehensive Income (Loss) [Table Text Block]

Accumulated Other Comprehensive Loss
In millions	2014			2013			2012
Cumulative Translation Adjustments at beginning of year	$	(78	)	$	(56	)	$	(52	)
Translation adjustments	(1		)	(1		)	(4		)
Reclassification to earnings - Sundry income (expense) - net (1)	16			(21		)	—
Balance at end of period	$	(63	)	$	(78	)	$	(56	)
Pension and Other Postretirement Benefit Plans at beginning of year	$	(967	)	$	(1,289	)	$	(1,080	)
Net gain (loss) during period (net of tax of $(165), $122, $(141)) (2) (3)	(273		)	263			(250		)
Prior service credit arising during the period (net of tax of $13, $-, $-)	25			—			—
Amortization of prior service cost included in net periodic pension costs (net of tax of $2, $2, $2) (2) (3)	4			4			3
Amortization of net loss included in net periodic pension costs (net of tax of $25, $33, $22) (2) (3)	31			55			38
Balance at end of period	$	(1,180	)	$	(967	)	$	(1,289	)
Total accumulated other comprehensive loss	$	(1,243	)	$	(1,045	)	$	(1,345	)

(1) In 2014, reclassification resulted from the divestiture or liquidation of subsidiaries. In 2013, reclassification resulted from the divestiture of a nonconsolidated affiliate.

(2)    See Note 15 for additional information.

(3)    Tax amounts are included in "Provision for income taxes" in the consolidated statements of operations.

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RESTRUCTURING (Tables)

12 Months Ended

Dec. 31, 2014

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Reserve by Type of Cost [Table Text Block]

Restructuring Activities	Costs Associated with Exit or Disposal Activities			Severance Costs			Impairment of Long-Lived Assets, Other Assets and Equity Method Investments
In millions										Total
Restructuring charges recognized in the fourth quarter of 2012	$	13		$	10		$	48		$	71
Charges against the reserve	—			—			(48		)	(48		)
Reserve balance at December 31, 2012	$	13		$	10		$	—		$	23
Cash payments	(2		)	(6		)	—			(8		)
Reserve balance at December 31, 2013	$	11		$	4		$	—		$	15
Adjustments to the reserve	(3		)	—			—			(3		)
Cash payments	(2		)	(3		)	—			(5		)
Reserve balance at December 31, 2014	$	6		$	1		$	—		$	7

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy)

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Principles of Consolidation and Basis of Presentation

Except as otherwise indicated by the context, the terms “Corporation” and “UCC” as used herein mean Union Carbide Corporation and its consolidated subsidiaries. The accompanying consolidated financial statements of the Corporation were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the assets, liabilities, revenues and expenses of all majority-owned subsidiaries over which the Corporation exercises control and, when applicable, entities for which the Corporation has a controlling financial interest. Intercompany transactions and balances are eliminated in consolidation. Investments in nonconsolidated affiliates (20-50 percent owned companies, joint ventures and partnerships) are accounted for using the equity method.

The Corporation is a wholly owned subsidiary of The Dow Chemical Company (“Dow”). In accordance with the accounting requirements for wholly owned subsidiaries, the presentation of earnings per share is not required and therefore is not provided.

Dow conducts its worldwide operations through global businesses, and the Corporation's business activities comprise components of Dow's global operations rather than stand-alone operations. The Corporation sells substantially all of its products to Dow at market-based prices, in accordance with Dow's long-standing intercompany pricing policy, in order to simplify the customer interface process. Because there are no separable reportable business segments for UCC and no detailed business information is provided to a chief operating decision maker regarding the Corporation's stand-alone operations, the Corporation's results are reported as a single operating segment.

Related Companies, Policy [Policy Text Block]

Related Companies

Transactions with the Corporation's parent company, Dow, or other Dow subsidiaries have been reflected as related company transactions in the consolidated financial statements.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates in Financial Statement Preparation

The preparation of financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The Corporation's consolidated financial statements include amounts that are based on management's best estimates and judgments. Actual results could differ from those estimates.

Environmental Costs, Policy [Policy Text Block]

Environmental Matters

Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated based on current law and existing technologies. These accruals are adjusted periodically as assessment and remediation efforts progress or as additional technical or legal information becomes available. Accruals for environmental liabilities are included in the consolidated balance sheets in “Accrued and other current liabilities” and “Other noncurrent obligations” at undiscounted amounts. Accruals for related insurance or other third-party recoveries for environmental liabilities are recorded when it is probable that a recovery will be realized and are included in the consolidated balance sheets as “Accounts receivable - Other.”

Environmental costs are capitalized if the costs extend the life of the property, increase its capacity, and/or mitigate or prevent contamination from future operations. Environmental costs are also capitalized in recognition of legal asset retirement obligations resulting from the acquisition, construction and/or normal operation of a long-lived asset. Costs related to environmental contamination treatment and cleanup are charged to expense. Estimated future incremental operations, maintenance and management costs directly related to remediation are accrued when such costs are probable and reasonably estimable.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency Translation

While the Corporation's consolidated subsidiaries are primarily based in the United States, the Corporation has small subsidiaries in Asia Pacific. For those subsidiaries, the local currency has been primarily used as the functional currency. Translation gains and losses of those operations that use local currency as the functional currency are included in the consolidated balance sheets in "Accumulated other comprehensive loss" ("AOCL"). Where the U.S. dollar is used as the functional currency, foreign currency gains and losses are reflected in income.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

Cash and cash equivalents include time deposits and investments with maturities of three months or less at the time of purchase.

Financial Instruments Accounting Policies [Text Block]

Financial Instruments

The Corporation calculates the fair value of financial instruments using quoted market prices whenever available. When quoted market prices are not available for various types of financial instruments (such as forwards, options and swaps), the Corporation uses standard pricing models with market-based inputs that take into account the present value of estimated future cash flows.

Inventory, Policy [Policy Text Block]

Inventories

Inventories are stated at the lower of cost or market. The method of determining cost for each subsidiary varies among last-in, first-out (“LIFO”); first-in, first-out (“FIFO”); and average cost, and is used consistently from year to year.

The Corporation routinely exchanges and swaps raw materials and finished goods with other companies to reduce delivery time, freight and other transportation costs. These transactions are treated as non-monetary exchanges and are valued at cost.

Property, Plant and Equipment, Policy [Policy Text Block]

Property

Land, buildings and equipment, including property under capital lease agreements, are carried at cost less accumulated depreciation. Depreciation is based on the estimated service lives of depreciable assets and is calculated using the straight-line method. Fully depreciated assets are retained in property and accumulated depreciation accounts until they are removed from service. In the case of disposals, assets and related accumulated depreciation are removed from the accounts, and the net amounts, less proceeds from disposal, are included in income.

Impairment and Disposal of Long-Lived Assets, Policy [Policy Text Block]

Impairment and Disposal of Long-Lived Assets

The Corporation evaluates long-lived assets and certain identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When undiscounted future cash flows are not expected to be sufficient to recover an asset's carrying amount, the asset is written down to its fair value based on bids received from third parties or a discounted cash flow analysis based on market participant assumptions.

Long-lived assets to be disposed of by sale, if material, are classified as held for sale and reported at the lower of carrying amount or fair value less cost to sell, and depreciation is ceased. Long-lived assets to be disposed of other than by sale are classified as held and used until they are disposed of and reported at the lower of carrying amount or fair value, and depreciation is recognized over the remaining useful life of the assets.

Asset Retirement Obligations, Policy [Policy Text Block]

Asset Retirement Obligations

The Corporation records asset retirement obligations as incurred and reasonably estimable, including obligations for which the timing and/or method of settlement are conditional on a future event that may or may not be within the control of the Corporation. The fair values of obligations are recorded as liabilities on a discounted basis and are accreted over time for the change in present value. Costs associated with the liabilities are capitalized and amortized over the estimated remaining useful life of the asset, generally for periods of 10 years or less.

Investments in Related Companies, Policy [Policy Text Block]

Investments in Related Companies

Investments in related companies consist of the Corporation's ownership interests in Dow subsidiaries located in North America and Latin America. The Corporation accounts for these investments using the cost method as it does not have significant influence over the operating and financial policies of these related companies.

Investment, Policy [Policy Text Block]

Investments

Investments in debt securities are classified as available-for-sale and reported at fair value with unrealized gains and losses recorded in AOCL. The cost of investments sold is determined by specific identification. The Corporation routinely reviews available-for-sale securities for other-than-temporary declines in fair value below the cost basis, and when events or changes in circumstances indicate the carrying value of an asset may not be recoverable, the security is written down to fair value establishing a new cost basis.

Revenue Recognition, Policy [Policy Text Block]

Revenue

Substantially all of the Corporation's revenues are generated by sales to Dow. Approximately 99 percent of the Corporation's sales are related to sales of product (97 percent in 2013 and 96 percent in 2012); the remaining 1 percent is related to the licensing of patents and technology (3 percent in 2013 and 4 percent in 2012).

Revenue for product sales to related companies is recognized as risk and title to the product transfer to the related company, which occurs either at the time production is complete or free on board (“FOB”) UCC's manufacturing facility, in accordance with the sales agreement between the Corporation and Dow.

Revenue for product sales is recognized as risk and title to the product transfer to the customer, which for trade sales, usually occurs at the time shipment is made. As such, title to the product passes when the product is delivered to the freight carrier. UCC's standard terms of delivery are included in its contracts of sale, order confirmation documents, and invoices. Freight costs and any directly related costs of transporting finished product to customers are recorded as “Cost of sales” in the consolidated statements of operations.

Revenue related to the initial licensing of patents and technology is recognized when earned; revenue related to running royalties is recognized according to licensee production levels.

Legal Costs, Policy [Policy Text Block]

Legal Costs

The Corporation expenses legal costs as incurred. Accruals for legal matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated.

Severance Costs [Policy Text Block]

Severance Costs

Management routinely reviews its operations around the world in an effort to ensure competitiveness across its operations and geographic areas. When the reviews result in a workforce reduction related to the shutdown of facilities or other optimization activities, severance benefits are provided to employees primarily under ongoing benefit arrangements. These severance costs are accrued once management commits to a plan of termination including the number of employees to be terminated, their job classifications or functions, their locations and the expected termination date.

Income Tax, Policy [Policy Text Block]

Income Taxes

The Corporation accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities using enacted tax rates. The effect of a change in tax rates on deferred tax assets or liabilities is recognized in income in the period that includes the enactment date. The Corporation is included in Dow's consolidated federal income tax group and consolidated income tax return. The Corporation accounts for its income taxes following the formula in the Dow-UCC Tax Sharing Agreement used to compute the amount due to Dow or UCC for UCC's share of taxable income and tax attributes on Dow's consolidated income tax return. This method generally follows the separate return method. The amounts reported as income taxes payable or receivable represent the Corporation's payment obligation (or refundable amount) to Dow based on a theoretical tax liability calculated on a separate return method.

Annual tax provisions include amounts considered sufficient to pay assessments that may result from examinations of prior year tax returns; however, the amount ultimately paid upon resolution of issues raised may differ from the amounts accrued.

The Corporation recognizes the financial statement effects of an uncertain income tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. The Corporation accrues for non-income tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated. The current portion of uncertain income tax positions is included in “Income taxes payable” and the long-term portion is included in “Other noncurrent obligations” in the consolidated balance sheets.

Provision is made for taxes on undistributed earnings of foreign subsidiaries and related companies to the extent that such earnings are not deemed to be permanently invested.

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INTANGIBLE ASSETS (Schedule of Amortization Expense of Intangible Assets) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Finite-Lived Intangible Assets [Line Items]
Amortization Expense, software, included in 'cost of sales'	$ 2	[1]	$ 2	[1]	$ 2	[1]

[1] Included in “Cost of sales” in the consolidated statements of operations.

XML

BUSINESS AND GEOGRAPHIC AREAS (Tables)

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]

Geographic Area Information In millions	United States		Asia Pacific		Rest of World		Total
2014
Sales to external customers (1)	$	62	$	1	$	19	$	82
Long-lived assets	$	1,113	$	6	$	33	$	1,152
2013
Sales to external customers (1)	$	100	$	43	$	18	$	161
Long-lived assets	$	1,197	$	6	$	36	$	1,239
2012
Sales to external customers (1)	$	98	$	64	$	15	$	177
Long-lived assets	$	1,287	$	8	$	39	$	1,334

(1) Of the total sales to external customers, China was less than 1 percent in 2014, approximately 21 percent in 2013 and 21 percent in 2012; and Malaysia was less than 1 percent in 2014, approximately 4 percent in 2013 and 10 percent in 2012, both of which are included in Asia Pacific.

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DIVESTITURES (Tables)

12 Months Ended

Dec. 31, 2014

Divestitures [Abstract]

Schedule of Disposal Groups, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]

Assets Divested In millions	December 2, 2013
Accounts receivable	$	4
Inventories	19
Net property	7
Total assets divested	$	30

XML

INVENTORIES (Tables)

12 Months Ended

Dec. 31, 2014

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

Inventories at December 31 In millions	2014		2013
Finished goods	$	205	$	233
Work in process	30		31
Raw materials	45		50
Supplies	98		90
Total inventories	$	378	$	404

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation and Basis of Presentation

Except as otherwise indicated by the context, the terms “Corporation” and “UCC” as used herein mean Union Carbide Corporation and its consolidated subsidiaries. The accompanying consolidated financial statements of the Corporation were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the assets, liabilities, revenues and expenses of all majority-owned subsidiaries over which the Corporation exercises control and, when applicable, entities for which the Corporation has a controlling financial interest. Intercompany transactions and balances are eliminated in consolidation. Investments in nonconsolidated affiliates (20-50 percent owned companies, joint ventures and partnerships) are accounted for using the equity method.

The Corporation is a wholly owned subsidiary of The Dow Chemical Company (“Dow”). In accordance with the accounting requirements for wholly owned subsidiaries, the presentation of earnings per share is not required and therefore is not provided.

Dow conducts its worldwide operations through global businesses, and the Corporation's business activities comprise components of Dow's global operations rather than stand-alone operations. The Corporation sells substantially all of its products to Dow at market-based prices, in accordance with Dow's long-standing intercompany pricing policy, in order to simplify the customer interface process. Because there are no separable reportable business segments for UCC and no detailed business information is provided to a chief operating decision maker regarding the Corporation's stand-alone operations, the Corporation's results are reported as a single operating segment.

Related Companies

Transactions with the Corporation's parent company, Dow, or other Dow subsidiaries have been reflected as related company transactions in the consolidated financial statements.

Use of Estimates in Financial Statement Preparation

The preparation of financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The Corporation's consolidated financial statements include amounts that are based on management's best estimates and judgments. Actual results could differ from those estimates.

Foreign Currency Translation

While the Corporation's consolidated subsidiaries are primarily based in the United States, the Corporation has small subsidiaries in Asia Pacific. For those subsidiaries, the local currency has been primarily used as the functional currency. Translation gains and losses of those operations that use local currency as the functional currency are included in the consolidated balance sheets in "Accumulated other comprehensive loss" ("AOCL"). Where the U.S. dollar is used as the functional currency, foreign currency gains and losses are reflected in income.

Environmental Matters

Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated based on current law and existing technologies. These accruals are adjusted periodically as assessment and remediation efforts progress or as additional technical or legal information becomes available. Accruals for environmental liabilities are included in the consolidated balance sheets in “Accrued and other current liabilities” and “Other noncurrent obligations” at undiscounted amounts. Accruals for related insurance or other third-party recoveries for environmental liabilities are recorded when it is probable that a recovery will be realized and are included in the consolidated balance sheets as “Accounts receivable - Other.”

Environmental costs are capitalized if the costs extend the life of the property, increase its capacity, and/or mitigate or prevent contamination from future operations. Environmental costs are also capitalized in recognition of legal asset retirement obligations resulting from the acquisition, construction and/or normal operation of a long-lived asset. Costs related to environmental contamination treatment and cleanup are charged to expense. Estimated future incremental operations, maintenance and management costs directly related to remediation are accrued when such costs are probable and reasonably estimable.

Cash and Cash Equivalents

Cash and cash equivalents include time deposits and investments with maturities of three months or less at the time of purchase.

Financial Instruments

The Corporation calculates the fair value of financial instruments using quoted market prices whenever available. When quoted market prices are not available for various types of financial instruments (such as forwards, options and swaps), the Corporation uses standard pricing models with market-based inputs that take into account the present value of estimated future cash flows.

Inventories

Inventories are stated at the lower of cost or market. The method of determining cost for each subsidiary varies among last-in, first-out (“LIFO”); first-in, first-out (“FIFO”); and average cost, and is used consistently from year to year.

The Corporation routinely exchanges and swaps raw materials and finished goods with other companies to reduce delivery time, freight and other transportation costs. These transactions are treated as non-monetary exchanges and are valued at cost.

Property

Land, buildings and equipment, including property under capital lease agreements, are carried at cost less accumulated depreciation. Depreciation is based on the estimated service lives of depreciable assets and is calculated using the straight-line method. Fully depreciated assets are retained in property and accumulated depreciation accounts until they are removed from service. In the case of disposals, assets and related accumulated depreciation are removed from the accounts, and the net amounts, less proceeds from disposal, are included in income.

Impairment and Disposal of Long-Lived Assets

The Corporation evaluates long-lived assets and certain identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When undiscounted future cash flows are not expected to be sufficient to recover an asset's carrying amount, the asset is written down to its fair value based on bids received from third parties or a discounted cash flow analysis based on market participant assumptions.

Long-lived assets to be disposed of by sale, if material, are classified as held for sale and reported at the lower of carrying amount or fair value less cost to sell, and depreciation is ceased. Long-lived assets to be disposed of other than by sale are classified as held and used until they are disposed of and reported at the lower of carrying amount or fair value, and depreciation is recognized over the remaining useful life of the assets.

Asset Retirement Obligations

The Corporation records asset retirement obligations as incurred and reasonably estimable, including obligations for which the timing and/or method of settlement are conditional on a future event that may or may not be within the control of the Corporation. The fair values of obligations are recorded as liabilities on a discounted basis and are accreted over time for the change in present value. Costs associated with the liabilities are capitalized and amortized over the estimated remaining useful life of the asset, generally for periods of 10 years or less.

Investments in Related Companies

Investments in related companies consist of the Corporation's ownership interests in Dow subsidiaries located in North America and Latin America. The Corporation accounts for these investments using the cost method as it does not have significant influence over the operating and financial policies of these related companies.

Investments

Investments in debt securities are classified as available-for-sale and reported at fair value with unrealized gains and losses recorded in AOCL. The cost of investments sold is determined by specific identification. The Corporation routinely reviews available-for-sale securities for other-than-temporary declines in fair value below the cost basis, and when events or changes in circumstances indicate the carrying value of an asset may not be recoverable, the security is written down to fair value establishing a new cost basis.

Revenue

Substantially all of the Corporation's revenues are generated by sales to Dow. Approximately 99 percent of the Corporation's sales are related to sales of product (97 percent in 2013 and 96 percent in 2012); the remaining 1 percent is related to the licensing of patents and technology (3 percent in 2013 and 4 percent in 2012).

Revenue for product sales to related companies is recognized as risk and title to the product transfer to the related company, which occurs either at the time production is complete or free on board (“FOB”) UCC's manufacturing facility, in accordance with the sales agreement between the Corporation and Dow.

Revenue for product sales is recognized as risk and title to the product transfer to the customer, which for trade sales, usually occurs at the time shipment is made. As such, title to the product passes when the product is delivered to the freight carrier. UCC's standard terms of delivery are included in its contracts of sale, order confirmation documents, and invoices. Freight costs and any directly related costs of transporting finished product to customers are recorded as “Cost of sales” in the consolidated statements of operations.

Revenue related to the initial licensing of patents and technology is recognized when earned; revenue related to running royalties is recognized according to licensee production levels.

Legal Costs

The Corporation expenses legal costs as incurred. Accruals for legal matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated.

Severance Costs

Management routinely reviews its operations around the world in an effort to ensure competitiveness across its operations and geographic areas. When the reviews result in a workforce reduction related to the shutdown of facilities or other optimization activities, severance benefits are provided to employees primarily under ongoing benefit arrangements. These severance costs are accrued once management commits to a plan of termination including the number of employees to be terminated, their job classifications or functions, their locations and the expected termination date.

Income Taxes

The Corporation accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities using enacted tax rates. The effect of a change in tax rates on deferred tax assets or liabilities is recognized in income in the period that includes the enactment date. The Corporation is included in Dow's consolidated federal income tax group and consolidated income tax return. The Corporation accounts for its income taxes following the formula in the Dow-UCC Tax Sharing Agreement used to compute the amount due to Dow or UCC for UCC's share of taxable income and tax attributes on Dow's consolidated income tax return. This method generally follows the separate return method. The amounts reported as income taxes payable or receivable represent the Corporation's payment obligation (or refundable amount) to Dow based on a theoretical tax liability calculated on a separate return method.

Annual tax provisions include amounts considered sufficient to pay assessments that may result from examinations of prior year tax returns; however, the amount ultimately paid upon resolution of issues raised may differ from the amounts accrued.

The Corporation recognizes the financial statement effects of an uncertain income tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. The Corporation accrues for non-income tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated. The current portion of uncertain income tax positions is included in “Income taxes payable” and the long-term portion is included in “Other noncurrent obligations” in the consolidated balance sheets.

Provision is made for taxes on undistributed earnings of foreign subsidiaries and related companies to the extent that such earnings are not deemed to be permanently invested.

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PROPERTY (Tables)

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Schedule of other items related to property [Text Block]

In millions	2014		2013		2012
Depreciation expense	$	176	$	204	$	217
Manufacturing maintenance and repair costs	$	295	$	304	$	324
Capitalized interest	$	5	$	5	$	8

Schedule of property

Property at December 31	Estimated Useful
In millions	Lives (Years)	2014		2013
Land	—	$	49	$	51
Land and waterway improvements	15-25	208		204
Buildings	5-50	419		412
Machinery and equipment	3-20	5,744		5,862
Utility and supply lines	5-20	158		157
Other property	3-30	96		291
Construction in progress	—	157		102
Total property		$	6,831	$	7,079

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INCOME TAXES (Schedule of Provision (Credit) for Income Taxes) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013	Dec. 31, 2012
Income Tax Expense (Benefit), Continuing Operations [Abstract]
Federal, current	$ (41)	[1]	$ 337	$ 10
State and local, current	(5)		5	(5)
Foreign, current	1		6	0
Total, current	(45)		348	5
Federal, deferred	311	[1]	18	15
State and local, deferred	38		(47)	(3)
Foreign, deferred	0		0	0
Total, deferred	349		(29)	12
Federal	270	[1]	355	25
State and local	33		(42)	(8)
Foreign	1		6	0
Total tax provision (credit)	$ 304		$ 319	$ 17

[1] Reflects the 2014 impact of accelerated deductions.

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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables)

12 Months Ended

Dec. 31, 2014

Defined Benefit Plan Disclosure [Line Items]

Schedule of Net Benefit Costs [Table Text Block]

Net Periodic Benefit Cost for all Plans
	Defined Benefit Pension Plans									Other Postretirement Benefits
In millions	2014			2013			2012			2014			2013			2012
Service cost	$	30		$	31		$	28		$	1		$	2		$	2
Interest cost	183			165			189			13			14			17
Expected return on plan assets	(232		)	(232		)	(235		)	—			—			—
Amortization of prior service cost (credit)	6			7			7			—			(1		)	(2		)
Amortization of net loss	66			88			60			(10		)	—			—
Net periodic benefit cost	$	53		$	59		$	49		$	4		$	15		$	17

Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block]

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss for all Plans
	Defined Benefit Pension Plans									Other Postretirement Benefits
In millions	2014			2013			2012			2014			2013			2012
Net (gain) loss	$	450		$	(283	)	$	375		$	(12	)	$	(102	)	$	16
Prior service credit arising during period	(38		)	—			—			—			—			—
Amortization of prior service (cost) credit	(6		)	(7		)	(7		)	—			1			2
Amortization of net gain (loss)	(66		)	(88		)	(60		)	10			—			—
Total recognized in other comprehensive (income) loss	$	340		$	(378	)	$	308		$	(2	)	$	(101	)	$	18
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	393		$	(319	)	$	357		$	2		$	(86	)	$	35

Schedule of Change in Projected Benefit Obligations, Plan Assets and Funded Status of All Significant Plans [Table Text Block]

Change in Projected Benefit Obligations, Plan Assets and Funded Status for all Plans
In millions	Defined Benefit Pension Plans						Other Postretirement Benefits
Change in projected benefit obligation:	2014			2013			2014			2013
Benefit obligation at beginning of year	$	3,995		$	4,433		$	302		$	414
Service cost	30			31			1			2
Interest cost	183			165			13			14
Plan amendments	(38		)	—			—			—
Actuarial changes in assumptions and experience	531			(342		)	(13		)	(102		)
Benefits paid	(340		)	(285		)	(33		)	(26		)
Other	(16		)	(7		)	—			—
Benefit obligation at end of year	$	4,345		$	3,995		$	270		$	302
Change in plan assets:
Fair value of plan assets at beginning of year	$	3,586		$	3,548		$	—		$	—
Actual return on plan assets	312			174			—			—
Employer contributions	2			158			—			—
Asset transfer	(17		)	(9		)	—			—
Benefits paid	(340		)	(285		)	—			—
Fair value of plan assets at end of year	$	3,543		$	3,586		$	—		$	—
Funded status at end of year	$	(802	)	$	(409	)	$	(270	)	$	(302	)

Net amounts recognized in the consolidated balance sheets at December 31:
Current liabilities	$	(1	)	$	(1	)	$	(27	)	$	(33	)
Noncurrent liabilities	(801		)	(408		)	(243		)	(269		)
Net amounts recognized in the consolidated balance sheets	$	(802	)	$	(409	)	$	(270	)	$	(302	)
Pretax amounts recognized in AOCL at December 31:
Net loss (gain)	$	1,955		$	1,570		$	(109	)	$	(107	)
Prior service cost (credit)	(19		)	26			(1		)	(1		)
Pretax balance in AOCL at end of year	$	1,936		$	1,596		$	(110	)	$	(108	)

Schedule of Expected Benefit Payments [Table Text Block]

Estimated Future Benefit Payments at December 31, 2014
In millions	Defined Benefit Pension Plans		Other Postretirement Benefits
2015	$	280	$	28
2016	278		23
2017	278		21
2018	277		20
2019	277		19
2020 through 2024	1,361		88
Total	$	2,751	$	199

Schedule of Allocation of Plan Assets [Table Text Block]

Strategic Target Allocation of Plan Assets
Asset Category	Target Allocation
Equity securities	23	%
Fixed income securities	45	%
Alternative investments	27	%
Other	5	%
Total	100	%

Schedule of Defined Benefit Plans Disclosures [Table Text Block]

Basis of Fair Value Measurements at December 31, 2014 In millions	Quoted Prices in Active Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Cash and cash equivalents	$	3	$	131		$	—	$	134
Equity securities:
U.S. equity	$	360	$	78		$	1	$	439
Non-U.S. equity - developed countries	166		160			—		326
Emerging markets	40		62			3		105
Equity derivatives	—		(1		)	—		(1		)
Total equity securities	$	566	$	299		$	4	$	869
Fixed income securities:
U.S. government and municipalities	$	—	$	673		$	—	$	673
U.S. agency mortgage backed securities	—		66			—		66
Corporates - investment grade	—		743			—		743
Non-U.S. governments - developed countries	—		6			—		6
Non-U.S. corporates - developed countries	—		160			—		160
Emerging markets debt	—		14			—		14
Other asset-backed securities	—		11			1		12
Other fixed income funds	—		—			32		32
High yield bonds	—		2			—		2
Total fixed income securities	$	—	$	1,675		$	33	$	1,708
Alternative investments:
Real estate	$	—	$	—		$	288	$	288
Private equity	—		—			233		233
Absolute return	—		126			166		292
Total alternative investments	$	—	$	126		$	687	$	813
Total other securities	$	—	$	(3	)	$	22	$	19
Total pension plan assets at fair value	$	569	$	2,228		$	746	$	3,543

Basis of Fair Value Measurements at December 31, 2013 In millions	Quoted Prices in Active Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Cash and cash equivalents	$	3	$	304		$	—	$	307
Equity securities:
U.S. equity	$	388	$	143		$	—	$	531
Non-U.S. equity - developed countries	181		85			—		266
Emerging markets	119		67			2		188
Total equity securities	$	688	$	295		$	2	$	985
Fixed income securities:
U.S. government and municipalities	$	—	$	606		$	—	$	606
U.S. agency mortgage backed securities	—		63			—		63
Corporates - investment grade	—		635			—		635
Non-U.S. governments - developed countries	—		2			—		2
Non-U.S. corporates - developed countries	—		159			—		159
Emerging markets debt	—		22			—		22
Other asset-backed securities	—		9			2		11
Other fixed income funds	—		—			12		12
High yield bonds	—		3			—		3
Fixed income derivatives	—		(3		)	—		(3		)
Total fixed income securities	$	—	$	1,496		$	14	$	1,510
Alternative investments:
Real estate	$	—	$	—		$	292	$	292
Private equity	—		—			228		228
Absolute return	—		127			103		230
Total alternative investments	$	—	$	127		$	623	$	750
Total other securities	$	—	$	12		$	22	$	34
Total pension plan assets at fair value	$	691	$	2,234		$	661	$	3,586

Defined Benefit Pension Plans [Member]

Defined Benefit Plan Disclosure [Line Items]

Schedule of Assumptions Used [Table Text Block]

Pension Plan Assumptions	Benefit Obligations at December 31						Net Periodic Costs for the Year
	2014		2013		2012		2014		2013		2012
Discount rate	3.90	%	4.75	%	3.85	%	4.75	%	3.85	%	4.85	%
Rate of increase in future compensation levels	4.50	%	4.50	%	4.50	%	4.50	%	4.50	%	4.50	%
Long-term rate of return on assets	—		—		—		6.80	%	6.90	%	6.90	%

Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block]

Pension Plans with Accumulated Benefit Obligations in Excess ofPlan Assets at December 31
In millions	2014		2013
Projected benefit obligation	$	4,345	$	3,995
Accumulated benefit obligation	$	4,302	$	3,963
Fair value of plan assets	$	3,543	$	3,586

Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets [Table Text Block]

Fair Value Measurement of Level 3 Pension Plan Assets In millions	Equity Securities			Fixed Income Securities			Alternative Investments			Other Investments		Total
Balance at January 1, 2013	$	3		$	17		$	552		$	22	$	594
Actual return on plan assets:
Relating to assets held at Dec 31, 2013	(2		)	—			22			—		20
Relating to assets sold during 2013	—			—			40			—		40
Purchases, sales and settlements	1			(3		)	9			—		7
Balance at December 31, 2013	$	2		$	14		$	623		$	22	$	661
Actual return on plan assets:
Relating to assets held at Dec 31, 2014	(2		)	—			(22		)	—		(24		)
Relating to assets sold during 2014	—			—			35			—		35
Purchases, sales and settlements	4			20			53			—		77
Transfers out of Level 3, net	—			(1		)	—			—		(1		)
Foreign currency impact	—			—			(2		)	—		(2		)
Balance at December 31, 2014	$	4		$	33		$	687		$	22	$	746

Other Postretirement Benefits [Member]

Defined Benefit Plan Disclosure [Line Items]

Schedule of Assumptions Used [Table Text Block]

Plan Assumptions for Other Postretirement Benefits	Benefit Obligations at December 31						Net Periodic Costs for the Year
	2014		2013		2012		2014		2013		2012
Discount rate	3.75	%	4.40	%	3.65	%	4.40	%	3.65	%	4.60	%
Initial health care cost trend rate	7.05	%	7.46	%	7.85	%	7.46	%	7.85	%	8.30	%
Ultimate health care cost trend rate	5.00	%	5.00	%	5.00	%	5.00	%	5.00	%	5.00	%
Year ultimate trend rate to be reached	2020		2020		2019		2020		2020		2019

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NONCONSOLIDATED AFFILIATES (Summary of Financial Information) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013		Dec. 31, 2012
Schedule of Equity Method Investments [Line Items]
Equity in earnings of nonconsolidated affiliates	$ 7	$ 82		$ 59
Investments in nonconsolidated affiliates	13	6
Principal Nonconsolidated Affiliates [Member]
Schedule of Equity Method Investments [Line Items]
Sales	0	452	[1]	773
Gross Profit	0	208	[1]	209
Net Income	0	142	[1]	112
Equity in earnings of nonconsolidated affiliates	0	84		59
Investments in nonconsolidated affiliates	$ 0
Nippon Unicar Company Limited [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	0.00%	0.00%		50.00%
Univation Technologies, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	0.00%	0.00%		50.00%

[1] Income statement information for NUC is for the six-month period ended June 30, 2013 and income statement information for Univation is for the nine-month period ended September 30, 2013.

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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Other Postretirement Benefits) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Discount rate - benefit obligations	3.90%	4.75%	3.85%
Discount rate - net periodic costs	4.75%	3.85%	4.85%
Rate of increase in future compensation levels - benefit obligations	4.50%	4.50%	4.50%
Rate of increase in future compensation levels - net periodic costs	4.50%	4.50%	4.50%
Expected long-term rate of return on plan assets - net periodic costs	6.80%	6.90%	6.90%
Employer Group Waiver Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax	10	55
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Discount rate - benefit obligations	3.75%	4.40%	3.65%
Initial health care cost trend rate - benefit obligations	7.05%	7.46%	7.85%
Ultimate health care cost trend rate - benefit obligations	5.00%	5.00%	5.00%
Discount rate - net periodic costs	4.40%	3.65%	4.60%
Initial health care cost trend rate - net periodic costs	7.46%	7.85%	8.30%
Ultimate health care cost trend rate - net periodic costs	5.00%	5.00%	5.00%
Defined Benefit Plan, Year that Rate Reaches Ultimate Trend Rate	2020	2020	2019
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation	6
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation	16

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Consolidated Statements of Operations (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Consolidated Statements of Operations [Abstract]
Net trade sales	$ 82	$ 161	$ 177
Net sales to related companies	6,835	6,787	6,070
Total Net Sales	6,917	6,948	6,247
Cost of sales	5,922	6,214	6,088
Research and development expenses	20	25	35
Selling, general and administrative expenses	9	12	10
Asbestos-related charge	(78)	0	0
Restructuring charges (credits)	3	0	(74)
Equity in earnings of nonconsolidated affiliates	7	82	59
Sundry income (expense) - net	14	308	(182)
Interest income	11	12	14
Interest expense and amortization of debt discount	32	32	28
Income (Loss) Before Income Taxes	891	1,067	(97)
Provision for income taxes	304	319	17
Net Income (Loss) Attributable to Union Carbide Corporation	$ 587	$ 748	$ (114)

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BUSINESS AND GEOGRAPHIC AREAS (Schedule of Revenue by Geographic Area and Other Details) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales to external customers	$ 82		$ 161		$ 177
Long-lived assets	1,152		1,239
UNITED STATES
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales to external customers	62	[1]	100	[1]	98	[1]
Long-lived assets	1,113		1,197		1,287
ASIA PACIFIC
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales to external customers	1	[1]	43	[1]	64	[1]
Long-lived assets	6		6		8
CHINA
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of total sales related to a specific country in a geographic area	1.00%		21.00%		21.00%
MALAYSIA
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of total sales related to a specific country in a geographic area	1.00%		4.00%		10.00%
REST OF WORLD
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales to external customers	19	[1]	18	[1]	15	[1]
Long-lived assets	$ 33		$ 36		$ 39

[1] Of the total sales to external customers, China was less than 1 percent in 2014, approximately 21 percent in 2013 and 21 percent in 2012; and Malaysia was less than 1 percent in 2014, approximately 4 percent in 2013 and 10 percent in 2012, both of which are included in Asia Pacific.

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Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013		Dec. 31, 2012
Operating Activities
Net Income (Loss) Attributable to Union Carbide Corporation	$ 587	$ 748		$ (114)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	202	222		235
Provision (credit) for deferred income tax	349	(29)		12
Earnings of nonconsolidated affiliates less than (in excess of) dividends received	(7)	(21)		13
Net gains on sales of assets	(70)	(368)		(4)
Asbestos-related charge	(78)	0		0
Restructuring charges (credits)	(3)	0		74
Impairment of investment in related company	0	25	[1]	131	[1]
Pension contributions	(2)	(158)		(158)
Other, net	0	2		(1)
Changes in assets and liabilities, net of effects of divested companies:
Accounts and notes receivable	(19)	4		(6)
Related company receivables	217	(135)		970
Inventories	27	(3)		(213)
Accounts payable	28	(80)		25
Related company payables	484	(32)		54
Other assets and liabilities	(622)	105		82
Cash provided by operating activities	1,249	280		1,100
Investing Activities
Capital expenditures	(166)	(121)		(241)
Purchase of related company receivables	0	0		(8)
Change in noncurrent receivable from related company	35	23		(53)
Proceeds from sale of ownership interest in nonconsolidated affiliate	0	13		0
Proceeds from sales of assets	153	411		7
Purchases of investments	0	0		(1)
Cash provided by (used in) investing activities	22	326		(296)
Financing Activities
Dividends paid to stockholder	(1,280)	(591)		(775)
Payments on long-term debt	(1)	0		(37)
Cash used in financing activities	(1,281)	(591)		(812)
Summary
Increase (decrease) in cash and cash equivalents	(10)	15		(8)
Cash and cash equivalents at beginning of year	33	18		26
Cash and cash equivalents at end of period	$ 23	$ 33		$ 18

[1] See Note 17 for additional information.

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FINANCIAL INSTRUMENTS (Fair Value of Financial Instruments) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014		Dec. 31, 2013
Long-term Debt [Member]
Financial Instruments [Line Items]
Financial Instruments, Cost	$ (482)		$ (471)
Financial Instruments, Gross Unrealized Gains	0		0
Financial Instruments, Gross Unrealized Loss	(119)		(85)
Financial Instruments, Fair Value	(601)		(556)
Debt Securities [Member]
Financial Instruments [Line Items]
Financial Instruments, Cost	5	[1]	5	[1]
Financial Instruments, Gross Unrealized Gains	0	[1]	0	[1]
Financial Instruments, Gross Unrealized Loss	0	[1]	0	[1]
Financial Instruments, Fair Value	$ 5	[1]	$ 5	[1]

[1] Marketable securities are included in “Other investments” in the consolidated balance sheets.

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INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2014

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Intangible Assets

Intangible Assets at December 31			2014							2013
In millions	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Intangible assets with finite lives:
Licenses and intellectual property	$	33	$	(33	)	$	—	$	33	$	(33	)	$	—
Software	55		(40		)	15		49		(39		)	10
Total intangible assets	$	88	$	(73	)	$	15	$	82	$	(72	)	$	10

Schedule Of Finite Lived Intangible Assets Amortization Expense Table [Table Text Block]

Amortization Expense In millions	2014		2013		2012
Software (1)	$	2	$	2	$	2

(1) Included in “Cost of sales” in the consolidated statements of operations.

Schedule of Expected Amortization Expense [Table Text Block]

Estimated Amortization Expense for Next Five Years In millions
2015	$	2
2016	$	3
2017	$	3
2018	$	3
2019	$	2

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COMMITMENTS AND CONTINGENT LIABILITIES (Environmental Matters) (Narrative) (Details) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

Environmental Loss Contingency Disclosure [Text Block]

Accrued Liability for Environmental Matters
In millions	2014			2013
Balance at January 1	$	126		$	95
Additional accruals	62			80
Charges against reserve	(56		)	(49		)
Balance at December 31	$	132		$	126

Receivables for Asbestos-Related Costs

Receivables for Asbestos-Related Costs at December 31 In millions	2014		2013
Receivables for defense and resolution costs - carriers with settlement agreements	$	69	$	66
Receivables for insurance recoveries - carriers without settlement agreements	10		25
Total	$	79	$	91

Fixed and determinable portion of take or pay obligations (table text block)

Fixed and Determinable Portion of Take-or-Pay Obligations at December 31, 2014 In millions
2015	$	24
2016	22
2017	22
2018	20
2019	18
2020 and beyond	47
Total	$	153

Loss Contingencies [Line Items]

Environmental Remediation Expense

$ 62

$ 80

$ 31

Capital expenditures for environmental protection

6

2

7

Accrual for Environmental Loss Contingencies [Roll Forward]

Accrual for Environmental Loss Contingencies, beginning balance

126

95

Accrual for Environmental Loss Contingencies, Provision for New Losses

62

80

Accrual For Environmental Loss Contingencies Charges Against Reserve

(56)

(49)

Accrual for environmental loss contingencies, ending balance

132

126

95

Accrual For Environmental Loss Contingencies Superfund Sites [Member]

Accrual for Environmental Loss Contingencies [Roll Forward]

Accrual for environmental loss contingencies, ending balance

$ 22

$ 23

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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS

12 Months Ended

Dec. 31, 2014

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS

Pension Plans

The Corporation has a defined benefit pension plan that covers substantially all employees in the United States. Benefits are based on length of service and the employee's three highest consecutive years of compensation. Employees hired on or after January 1, 2008 earn benefits that are based on a set percentage of annual pay, plus interest. The Corporation also has a non-qualified supplemental pension plan.

The Corporation's funding policy is to contribute to the plan when pension laws or economics either require or encourage funding. In 2014, UCC contributed $2 million to its pension plans including contributions to fund benefits payments for its non-qualified supplemental plan. UCC expects to contribute approximately $2 million to its pension plans in 2015.

The weighted-average assumptions used to determine pension plan obligations and net periodic benefit costs are provided below:

Pension Plan Assumptions	Benefit Obligations at December 31						Net Periodic Costs for the Year
	2014		2013		2012		2014		2013		2012
Discount rate	3.90	%	4.75	%	3.85	%	4.75	%	3.85	%	4.85	%
Rate of increase in future compensation levels	4.50	%	4.50	%	4.50	%	4.50	%	4.50	%	4.50	%
Long-term rate of return on assets	—		—		—		6.80	%	6.90	%	6.90	%

The Corporation determines the expected long-term rate of return on plan assets by performing a detailed analysis of key economic and market factors driving historical returns for each asset class and formulating a projected return based on factors in the current environment. Factors considered include, but are not limited to, inflation, real economic growth, interest rate yield, interest rate spreads, and other valuation measures and market metrics. The expected long-term rate of return for each asset class is then weighted based on the strategic asset allocation approved by the governing body for each plan. The Corporation's historical experience with the pension fund asset performance is also considered. The discount rates utilized to measure the pension and other postretirement obligations of the U.S. qualified plans are based on the yield on high-quality fixed income investments at the measurement date. Future expected actuarially determined cash flows of the plans are matched against the Towers Watson RATE:Link yield curve (based on 60th and 90th percentile bond yields) to arrive at a single discount rate by plan.

On October 27, 2014, the Society of Actuaries ("SOA") published updated mortality tables and mortality improvement scales (generational mortality tables), which reflect increased life expectancy. Based on an evaluation of the mortality experience of the Corporation's U.S. pension plans and the SOA's tables, the Corporation adopted updated generational mortality tables for purposes of measuring U.S. pension and other postretirement obligations at year-end. The mortality assumption change increased the pension and other postretirement benefit obligations by $139 million at December 31, 2014.

The accumulated benefit obligation for all defined benefit pension plans was $4.3 billion at December 31, 2014 and $4.0 billion at December 31, 2013.

Pension Plans with Accumulated Benefit Obligations in Excess ofPlan Assets at December 31
In millions	2014		2013
Projected benefit obligation	$	4,345	$	3,995
Accumulated benefit obligation	$	4,302	$	3,963
Fair value of plan assets	$	3,543	$	3,586

Other Postretirement Benefits

The Corporation provides certain health care and life insurance benefits to retired U.S. employees. The plan provides health care benefits, including hospital, physicians' services, drug and major medical expense coverage, and life insurance benefits. The Corporation and the retiree share the cost of these benefits, with the Corporation portion increasing as the retiree has increased years of credited service, although there is a cap on the Corporation portion. The Corporation has the ability to change these benefits at any time. Employees hired after January 1, 2008 are not covered under this plan.

During the fourth quarter of 2013, the Corporation started implementing an Employer Group Waiver Plan (“EGWP”) for its Medicare-eligible, retiree medical plan participants, which became effective on January 1, 2014. As a result, the Medicare Part D Retiree Drug Subsidy program (“RDS”) was eliminated on January 1, 2014. The EGWP does not significantly alter the benefits provided to retiree medical plan participants. The federal subsidies to be earned under the EGWP are expected to exceed those earned under the RDS and will be partially offset by increased costs related to the administration of the EGWP. The formation of the EGWP and the resulting change in assumption generated an actuarial gain of $55 million at December 31, 2013, included in "Accumulated other comprehensive loss" in the consolidated balance sheets. The Corporation also recognized a reduction in the postretirement benefit obligation of $55 million at December 31, 2013. The net periodic benefit cost decreased by $10 million in 2014 due to the EGWP.

The Corporation funds most of the cost of these health care and life insurance benefits as incurred. In 2014, UCC did not make any contributions to its other postretirement benefit plan trust. Likewise, UCC does not expect to contribute assets to its other postretirement benefit plan trust in 2015.

The weighted-average assumptions used to determine other postretirement benefit obligations and net periodic benefit costs for the plan are provided in the following table:

Plan Assumptions for Other Postretirement Benefits	Benefit Obligations at December 31						Net Periodic Costs for the Year
	2014		2013		2012		2014		2013		2012
Discount rate	3.75	%	4.40	%	3.65	%	4.40	%	3.65	%	4.60	%
Initial health care cost trend rate	7.05	%	7.46	%	7.85	%	7.46	%	7.85	%	8.30	%
Ultimate health care cost trend rate	5.00	%	5.00	%	5.00	%	5.00	%	5.00	%	5.00	%
Year ultimate trend rate to be reached	2020		2020		2019		2020		2020		2019

Increasing the assumed medical cost trend rate by one percentage point in each year would increase the accumulated postretirement benefit obligation at December 31, 2014 by $6 million and the net periodic postretirement benefit cost for the year by an immaterial amount. Decreasing the assumed medical cost trend rate by one percentage point in each year would decrease the accumulated postretirement benefit obligation at December 31, 2014 by $16 million and the net periodic postretirement benefit cost for the year by an immaterial amount.

Net Periodic Benefit Cost for all Plans
	Defined Benefit Pension Plans									Other Postretirement Benefits
In millions	2014			2013			2012			2014			2013			2012
Service cost	$	30		$	31		$	28		$	1		$	2		$	2
Interest cost	183			165			189			13			14			17
Expected return on plan assets	(232		)	(232		)	(235		)	—			—			—
Amortization of prior service cost (credit)	6			7			7			—			(1		)	(2		)
Amortization of net loss	66			88			60			(10		)	—			—
Net periodic benefit cost	$	53		$	59		$	49		$	4		$	15		$	17

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss for all Plans
	Defined Benefit Pension Plans									Other Postretirement Benefits
In millions	2014			2013			2012			2014			2013			2012
Net (gain) loss	$	450		$	(283	)	$	375		$	(12	)	$	(102	)	$	16
Prior service credit arising during period	(38		)	—			—			—			—			—
Amortization of prior service (cost) credit	(6		)	(7		)	(7		)	—			1			2
Amortization of net gain (loss)	(66		)	(88		)	(60		)	10			—			—
Total recognized in other comprehensive (income) loss	$	340		$	(378	)	$	308		$	(2	)	$	(101	)	$	18
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	393		$	(319	)	$	357		$	2		$	(86	)	$	35

Change in Projected Benefit Obligations, Plan Assets and Funded Status for all Plans
In millions	Defined Benefit Pension Plans						Other Postretirement Benefits
Change in projected benefit obligation:	2014			2013			2014			2013
Benefit obligation at beginning of year	$	3,995		$	4,433		$	302		$	414
Service cost	30			31			1			2
Interest cost	183			165			13			14
Plan amendments	(38		)	—			—			—
Actuarial changes in assumptions and experience	531			(342		)	(13		)	(102		)
Benefits paid	(340		)	(285		)	(33		)	(26		)
Other	(16		)	(7		)	—			—
Benefit obligation at end of year	$	4,345		$	3,995		$	270		$	302
Change in plan assets:
Fair value of plan assets at beginning of year	$	3,586		$	3,548		$	—		$	—
Actual return on plan assets	312			174			—			—
Employer contributions	2			158			—			—
Asset transfer	(17		)	(9		)	—			—
Benefits paid	(340		)	(285		)	—			—
Fair value of plan assets at end of year	$	3,543		$	3,586		$	—		$	—
Funded status at end of year	$	(802	)	$	(409	)	$	(270	)	$	(302	)

Net amounts recognized in the consolidated balance sheets at December 31:
Current liabilities	$	(1	)	$	(1	)	$	(27	)	$	(33	)
Noncurrent liabilities	(801		)	(408		)	(243		)	(269		)
Net amounts recognized in the consolidated balance sheets	$	(802	)	$	(409	)	$	(270	)	$	(302	)
Pretax amounts recognized in AOCL at December 31:
Net loss (gain)	$	1,955		$	1,570		$	(109	)	$	(107	)
Prior service cost (credit)	(19		)	26			(1		)	(1		)
Pretax balance in AOCL at end of year	$	1,936		$	1,596		$	(110	)	$	(108	)

In 2015, an estimated net loss of $87 million and prior service credit of $1 million for the defined benefit pension plans will be amortized from AOCL to net periodic benefit cost. In 2015, an estimated net gain of $11 million for the other postretirement benefit plan will be amortized from AOCL to net periodic benefit cost.

Estimated Future Benefit Payments

The estimated future benefit payments, reflecting expected future service, as appropriate, are presented in the following table:

Estimated Future Benefit Payments at December 31, 2014
In millions	Defined Benefit Pension Plans		Other Postretirement Benefits
2015	$	280	$	28
2016	278		23
2017	278		21
2018	277		20
2019	277		19
2020 through 2024	1,361		88
Total	$	2,751	$	199

Plan Assets

Plan assets consist primarily of equity and fixed income securities of U.S. and foreign issuers, and include alternative investments such as real estate, private equity and other absolute return strategies. At December 31, 2014, plan assets totaled $3.5 billion and $3.6 billion at December 31, 2013 which included no Dow common stock.

Investment Strategy and Risk Management for Plan Assets

The Corporation's investment strategy for the plan assets is to manage the assets in relation to the liability in order to pay retirement benefits to plan participants over the life of the plans. This is accomplished by identifying and managing the exposure to various markets risks, diversifying investments across various asset classes and earning an acceptable long-term rate of return consistent with an acceptable amount of risk, while considering the liquidity needs of the plan.

The plan is permitted to use derivative instruments for investment purposes, as well as for hedging the underlying asset and liability exposures and rebalancing the asset allocation. The plan uses value at risk, stress testing, scenario analysis and Monte Carlo simulation to monitor and manage both asset risk in the portfolios and surplus risk.

Equity securities primarily include investments in large- and small-cap companies located in both developed and emerging markets around the world. Fixed income securities are primarily U.S. dollar based and include U.S. treasuries and investment grade corporate bonds of companies diversified across industries. Alternative investments primarily include investments in real estate, private equity limited partnerships and absolute return strategies. Other significant investment types include various insurance contracts; and interest rate, equity and foreign exchange derivative investments and hedges.

Strategic Target Allocation of Plan Assets
Asset Category	Target Allocation
Equity securities	23	%
Fixed income securities	45	%
Alternative investments	27	%
Other	5	%
Total	100	%

Concentration of Risk

The Corporation mitigates the credit risk of investments by establishing guidelines with the investment managers that limit investment in any single issue or issuer to an amount that is not material to the portfolio being managed. These guidelines are monitored for compliance both by the Corporation and the external managers. Credit risk for hedging activity is mitigated by utilizing multiple counterparties, collateral support agreements, and centralized clearing where appropriate.

The Northern Trust Collective Government Short Term Investment money market fund is utilized as the sweep vehicle for the pension plan, which from time to time can represent a significant investment. Approximately 40 percent of the liability of the pension plan is covered by a participating group annuity issued by Prudential Insurance Company.

The following tables summarize the bases used to measure the Corporation's pension plan assets at fair value for the years ended December 31, 2014 and 2013:

Basis of Fair Value Measurements at December 31, 2014 In millions	Quoted Prices in Active Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Cash and cash equivalents	$	3	$	131		$	—	$	134
Equity securities:
U.S. equity	$	360	$	78		$	1	$	439
Non-U.S. equity - developed countries	166		160			—		326
Emerging markets	40		62			3		105
Equity derivatives	—		(1		)	—		(1		)
Total equity securities	$	566	$	299		$	4	$	869
Fixed income securities:
U.S. government and municipalities	$	—	$	673		$	—	$	673
U.S. agency mortgage backed securities	—		66			—		66
Corporates - investment grade	—		743			—		743
Non-U.S. governments - developed countries	—		6			—		6
Non-U.S. corporates - developed countries	—		160			—		160
Emerging markets debt	—		14			—		14
Other asset-backed securities	—		11			1		12
Other fixed income funds	—		—			32		32
High yield bonds	—		2			—		2
Total fixed income securities	$	—	$	1,675		$	33	$	1,708
Alternative investments:
Real estate	$	—	$	—		$	288	$	288
Private equity	—		—			233		233
Absolute return	—		126			166		292
Total alternative investments	$	—	$	126		$	687	$	813
Total other securities	$	—	$	(3	)	$	22	$	19
Total pension plan assets at fair value	$	569	$	2,228		$	746	$	3,543

Basis of Fair Value Measurements at December 31, 2013 In millions	Quoted Prices in Active Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Cash and cash equivalents	$	3	$	304		$	—	$	307
Equity securities:
U.S. equity	$	388	$	143		$	—	$	531
Non-U.S. equity - developed countries	181		85			—		266
Emerging markets	119		67			2		188
Total equity securities	$	688	$	295		$	2	$	985
Fixed income securities:
U.S. government and municipalities	$	—	$	606		$	—	$	606
U.S. agency mortgage backed securities	—		63			—		63
Corporates - investment grade	—		635			—		635
Non-U.S. governments - developed countries	—		2			—		2
Non-U.S. corporates - developed countries	—		159			—		159
Emerging markets debt	—		22			—		22
Other asset-backed securities	—		9			2		11
Other fixed income funds	—		—			12		12
High yield bonds	—		3			—		3
Fixed income derivatives	—		(3		)	—		(3		)
Total fixed income securities	$	—	$	1,496		$	14	$	1,510
Alternative investments:
Real estate	$	—	$	—		$	292	$	292
Private equity	—		—			228		228
Absolute return	—		127			103		230
Total alternative investments	$	—	$	127		$	623	$	750
Total other securities	$	—	$	12		$	22	$	34
Total pension plan assets at fair value	$	691	$	2,234		$	661	$	3,586

For assets classified as Level 1 measurements (measured using quoted prices in active markets), the total fair value is either the price of the most recent trade at the time of the market close or the official close price, as defined by the exchange on which the asset is most actively traded on the last trading day of the period, multiplied by the number of units held without consideration of transaction costs.

For assets classified as Level 2 measurements, where the security is frequently traded in less active markets, fair value is based on the closing price at the end of the period; where the security is less frequently traded, fair value is based on the price a dealer would pay for the security or similar securities, adjusted for any terms specific to that asset or liability. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance and quality checks. For derivative assets and liabilities, standard industry models are used to calculate the fair value of the various financial instruments based on significant observable market inputs such as foreign exchange rates, commodity prices, swap rates, interest rates, and implied volatilities obtained from various market sources.

Some plan assets are held in funds where a net asset value is calculated based on the fair value of the underlying assets and the number of shares owned. The classification of the fund (Level 2 or 3 measurements) is determined based on the lowest level classification of significant holdings within the fund. For all other assets for which observable inputs are used, fair value is derived through the use of fair value models, such as a discounted cash flow model or other standard pricing models.

For assets classified as Level 3 measurements, total fair value is based on significant unobservable inputs including assumptions where there is little, if any, market activity for the investment. Investment managers or fund managers provide valuations of the investment on a monthly or quarterly basis. These valuations are reviewed for reasonableness based on applicable sector, benchmark and company performance. Adjustments to valuations are made where appropriate. Where available, audited financial statements are obtained and reviewed for the investments as support for the manager's investment valuation.

The following table summarizes the changes in fair value of Level 3 pension plan assets for the years ended December 31, 2014 and 2013:

Fair Value Measurement of Level 3 Pension Plan Assets In millions	Equity Securities			Fixed Income Securities			Alternative Investments			Other Investments		Total
Balance at January 1, 2013	$	3		$	17		$	552		$	22	$	594
Actual return on plan assets:
Relating to assets held at Dec 31, 2013	(2		)	—			22			—		20
Relating to assets sold during 2013	—			—			40			—		40
Purchases, sales and settlements	1			(3		)	9			—		7
Balance at December 31, 2013	$	2		$	14		$	623		$	22	$	661
Actual return on plan assets:
Relating to assets held at Dec 31, 2014	(2		)	—			(22		)	—		(24		)
Relating to assets sold during 2014	—			—			35			—		35
Purchases, sales and settlements	4			20			53			—		77
Transfers out of Level 3, net	—			(1		)	—			—		(1		)
Foreign currency impact	—			—			(2		)	—		(2		)
Balance at December 31, 2014	$	4		$	33		$	687		$	22	$	746

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FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2014

Financial Instruments [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments:
	At December 31, 2014											At December 31, 2013
In millions	Cost			Gain		Loss			Fair Value			Cost			Gain		Loss			Fair Value
Debt securities (1)	$	5		$	—	$	—		$	5		$	5		$	—	$	—		$	5
Long-term debt	$	(482	)	$	—	$	(119	)	$	(601	)	$	(471	)	$	—	$	(85	)	$	(556	)

(1) Marketable securities are included in “Other investments” in the consolidated balance sheets.

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RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2014

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

RELATED PARTY TRANSACTIONS

The Corporation sells its products to Dow to simplify the customer interface process. Products are sold to and purchased from Dow at market-based prices in accordance with the terms of Dow’s intercompany pricing policies. After each quarter, the Corporation and Dow analyze the pricing used for the sales in that quarter and reach agreement on any necessary adjustments, at which point the prices are final. The Corporation also procures certain commodities and raw materials through a Dow subsidiary and pays a commission to that Dow subsidiary based on the volume and type of commodities and raw materials purchased. The commission expense is included in “Sundry income (expense) - net” in the consolidated statements of operations. Purchases from that Dow subsidiary were approximately $2.9 billion in 2014, $2.9 billion in 2013 and $3.1 billion in 2012.

The Corporation has a master services agreement with Dow whereby Dow provides services including, but not limited to, accounting, legal, treasury (investments, cash management, risk management, insurance), procurement, human resources, environmental, health and safety, and business management for UCC. Under the master services agreement with Dow, general administrative and overhead type services that Dow routinely allocates to various businesses are charged to UCC. The master services agreement cost allocation basis is headcount and includes a 10 percent service fee. This agreement resulted in expense of approximately $26 million in 2014, $25 million in 2013 and $32 million in 2012 for general administrative and overhead type services and the 10 percent service fee, included in “Sundry income (expense) - net” in the consolidated statements of operations. The decrease in general administrative and overhead type services from 2012, including the service fee, was due to a simplification of the cost structure as well as cost reduction initiatives by Dow. The remaining activity-based costs were approximately $53 million in 2014, $46 million in 2013 and $51 million in 2012 and were included in “Cost of sales” in the consolidated statements of operations.

Management believes the method used for determining expenses charged by Dow is reasonable. Dow provides these services by leveraging its centralized functional service centers to provide services at a cost that management believes provides an advantage to the Corporation.

The monitoring and execution of risk management policies related to interest rate and foreign currency risks, which are based on Dow’s risk management philosophy, are provided as a service to UCC.

As part of Dow’s cash management process, UCC is a party to revolving loans with Dow that have interest rates based on LIBOR (London Interbank Offered Rate) with varying maturities. At December 31, 2014, the Corporation had a note receivable of $1.2 billion ($2.4 billion at December 31, 2013) from Dow under a revolving loan agreement. The Corporation may draw from this note receivable in support of its daily working capital requirements and, as such, the net effect of cash inflows and outflows under this revolving loan agreement is presented in the consolidated statements of cash flows as an operating activity.

The Corporation also has a separate revolving credit agreement with Dow that allows the Corporation to borrow or obtain credit enhancements up to an aggregate of $1 billion that matures on December 30, 2015. Dow may demand repayment with a 30-day written notice to the Corporation, subject to certain restrictions. A related collateral agreement provides for the replacement of certain existing pledged assets, primarily equity interests in various subsidiaries and joint ventures, with cash collateral. At December 31, 2014, $875 million ($843 million at December 31, 2013) was available under the revolving credit agreement. The cash collateral is reported as “Noncurrent receivables from related companies” in the consolidated balance sheets.

Related company accounts payable and accounts receivable between UCC and Dow are settled on a regular basis. As a result of the phased implementation of the Corporation's new ERP system, as well as the implementation of an in-house banking system in the third quarter of 2014, intercompany balances are now settled on a monthly basis instead of throughout the month. As a result of this change, "Accounts receivable - Related companies" and "Accounts payable - Related companies" in the consolidated balance sheets reflect an increase when compared with previous years.

In October 2014, UCC authorized a distribution to Dow of its shares of common stock in GWN Holdings, Inc. ("GWN"). Prior to the stock distribution, GWN was owned 6.3 percent by UCC and 93.7 percent by Dow and its other wholly-owned subsidiaries. Prior to this distribution, UCC's investment in GWN was $10 million, accounted for as a cost method investment, and included in "Investments in related companies" in the consolidated balance sheets. No gain or loss was recorded on the stock distribution.

The Corporation recorded an impairment charge of $25 million in the fourth quarter of 2013 for the full value of the cost method investment in Dow Quimica Argentina S.A., a related company. The impairment charge, triggered by ongoing losses in the entity, is included in "Sundry income (expense) - net" in the consolidated statements of operations.

In the fourth quarter of 2012, UCC recorded an impairment charge of $131 million related to its investment in Modeland International Holdings Inc. ("Modeland"), a related company, representing the difference between the investment's cost and its fair value. The impairment was triggered by an ownership reorganization of Modeland's subsidiaries. The amount of the impairment charge was calculated based on an appraisal of the fair value of Modeland's assets and liabilities. The fair value was determined through the use of both income and market valuation approaches. The impairment charge is included in "Sundry income (expense) -net" in the consolidated statements of operations. Subsequent to recording the impairment charge, the Corporation also declared and paid a stock dividend to Dow for its ownership interest in Modeland totaling $9 million.

On a quarterly basis, the Corporation's Board of Directors reviews and approves a dividend distribution to its parent company and sole shareholder, Dow. The Board takes into consideration the level of earnings and cash flows, among other factors, in determining the amount of the dividend distribution. During 2014, the Corporation declared and paid dividends totaling $1.3 billion to Dow. In September 2013, UCC declared a stock dividend to Dow of its 100 percent ownership interest in Union Carbide Subsidiary C, Inc., which included UCC's full ownership interest in Univation. This stock dividend was effective on September 29, 2013 and totaled $70 million. During 2013, the Corporation declared and paid dividends totaling $661 million to Dow, which included cash dividends to Dow totaling $591 million.

The Corporation received cash dividends of $12 million from its related company investments in 2014 ($16 million in 2013 and $25 million in 2012). These dividends were included in "Sundry income (expense) - net" in the consolidated statements of operations.

In the third quarter of 2014, as part of a sale-leaseback transaction entered into by Dow for a significant portion of Dow's North America railcar fleet, UCC sold all of the railcars owned by UCC to Dow at fair value for $145 million in cash. The sale of the railcars resulted in a pretax gain of $66 million, and is included in "Sundry income (expense) - net" in the consolidated statements of operations.

In accordance with the Tax Sharing Agreement between the Corporation and Dow, the Corporation makes payments to Dow to cover the Corporation's estimated federal tax liability; payments were $579 million in 2014, $163 million in 2013 and zero in 2012.

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NOTES PAYABLE AND LONG-TERM DEBT (Schedule of Notes Payable) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Debt Disclosure [Abstract]
Notes payable - related companies	$ 43	$ 34
Period-end average interest rates	0.82%	0.92%

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Consolidated Statements of Equity (USD $) In Millions, unless otherwise specified	Total	Union Carbide Corporation's Stockholder's Equity [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss, Net of Tax [Member]	Noncontrolling Interest [Member]
Union Carbide Corporation's Stockholder's Equity, Beginning at Dec. 31, 2011			$ 0	$ 312	$ 5,253	$ (1,132)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss) Attributable to Union Carbide Corporation	(114)				(114)
Dividends declared					(784)
Other comprehensive income (loss)	(213)					(213)
Noncontrolling interests							2
Total Equity at Dec. 31, 2012	3,324
Union Carbide Corporation's Stockholder's Equity, Ending at Dec. 31, 2012		3,322	0	312	4,355	(1,345)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss) Attributable to Union Carbide Corporation	748				748
Dividends declared					(661)
Other comprehensive income (loss)	300					300
Noncontrolling interests	2						2
Total Equity at Dec. 31, 2013	3,711
Union Carbide Corporation's Stockholder's Equity, Ending at Dec. 31, 2013	3,709	3,709	0	312	4,442	(1,045)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss) Attributable to Union Carbide Corporation	587				587
Dividends declared					(1,289)
Other comprehensive income (loss)	(198)					(198)
Noncontrolling interests	0						0
Total Equity at Dec. 31, 2014	2,809
Union Carbide Corporation's Stockholder's Equity, Ending at Dec. 31, 2014	$ 2,809	$ 2,809	$ 0	$ 312	$ 3,740	$ (1,243)

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Consolidated Statements of Comprehensive Income (Loss) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Net Income (Loss) Attributable to Union Carbide Corporation	$ 587	$ 748	$ (114)
Other Comprehensive Income (Loss), Net of Tax
Cumulative translation adjustments	15	(22)	(4)
Pension and other postretirement benefit plan adjustments	(213)	322	(209)
Total other comprehensive income (loss)	(198)	300	(213)
Comprehensive Income (Loss) Attributable to Union Carbide Corporation	$ 389	$ 1,048	$ (327)

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FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2014

Financial Instruments [Abstract]

Financial Instruments Text Block

FINANCIAL INSTRUMENTS

Investments

The Corporation's investments in marketable securities are classified as available-for-sale. There were no proceeds from sales of available-for-sale securities in 2014, 2013 and 2012.

Portfolio managers regularly review all of the Corporation's holdings to determine if any investments are other-than-temporarily impaired. The analysis includes reviewing the amount of the impairment, as well as the length of time it has been impaired. In addition, specific guidelines for each instrument type are followed to determine if an other-than-temporary impairment has occurred. At December 31, 2014 and December 31, 2013, there were no impairment indicators or circumstances that would result in a material adjustment of these investments.

The Corporation's investments in debt securities, shown below, had contractual maturities of less than 10 years at December 31, 2014.

Fair Value of Financial Instruments:
	At December 31, 2014											At December 31, 2013
In millions	Cost			Gain		Loss			Fair Value			Cost			Gain		Loss			Fair Value
Debt securities (1)	$	5		$	—	$	—		$	5		$	5		$	—	$	—		$	5
Long-term debt	$	(482	)	$	—	$	(119	)	$	(601	)	$	(471	)	$	—	$	(85	)	$	(556	)

(1) Marketable securities are included in “Other investments” in the consolidated balance sheets.

Cost approximates fair value for all other financial instruments.

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Document and Entity Information (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	UNION CARBIDE CORP /NEW/
Entity Central Index Key	0000100790
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-K
Document Period End Date	Dec. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding	1,000
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float	$ 0

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FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

FAIR VALUE MEASUREMENTS

Fair Value Measurements on a Recurring Basis

The following table summarizes the basis used to measure certain assets and liabilities at fair value on a recurring basis:

Basis of Fair Value Measurements on a Recurring Basis at December 31	Significant Other Observable Inputs  (Level 2)		Significant Other Observable Inputs  (Level 2)
In millions	2014		2013
Assets at fair value:
Debt securities (1)	$	5	$	5
Liabilities at fair value:
Long-term debt (2)	$	601	$	556

(1) Included in “Other investments” in the consolidated balance sheets.

(2) See Note 10 for information on fair value measurements of long-term debt.

For assets and liabilities classified as Level 2 measurements, where the security is frequently traded in less active markets, fair value is based on the closing price at the end of the period; where the security is less frequently traded, fair value is based on the price a dealer would pay for the security or similar securities, adjusted for any terms specific to that asset or liability, or by using observable market data points of similar, more liquid securities to imply the price. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance/quality checks.

Assets that are measured using significant other observable inputs are primarily valued by reference to quoted prices of similar assets in active markets, adjusted for any terms specific to that asset. For all other assets for which observable inputs are used, fair value is derived through the use of fair value models, such as a discounted cash flow model or other standard pricing models. There were no transfers between Levels 1 and 2 during the years ended December 31, 2014 and 2013.

Fair Value Measurements on a Nonrecurring Basis

The following table summarizes the basis used to measure certain assets and liabilities at fair value on a nonrecurring basis in the consolidated balance sheets in 2012:

Basis of Fair Value Measurements on a Nonrecurring Basis in 2012	Significant Other Unobservable Inputs		Total Losses
In millions	(Level 3)		2012
Assets at fair value:
Long-lived assets, other assets and equity method investment	$	42	$	(179	)

2012 Fair Value Measurements on a Nonrecurring Basis

As part of the restructuring plan that was approved on October 22, 2012, the Corporation shut down a number of manufacturing facilities during the fourth quarter of 2012. The manufacturing assets and facilities associated with this plan were written down to zero in the fourth quarter of 2012. In addition, an equity investment was impaired. The equity investment, classified as a Level 3 measurement, was valued at $33 million using unobservable inputs, including assumptions a market participant would use to measure the fair value of the group of assets. These impairment charges, totaling $48 million, were included in "Restructuring charges (credits)" in the consolidated statements of operations. See Note 3 for additional information. Also included within the losses is a charge of $131 million related to an impairment of an investment in a related company. The investment, classified as a Level 3 measurement, was valued at $9 million using unobservable inputs, including assumptions a market participant would use to measure fair value of the group of assets. See Note 17 for additional information.

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RELATED PARTY TRANSACTIONS (Details) (USD $)	12 Months Ended					3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013		Dec. 31, 2012		Dec. 31, 2013	Sep. 30, 2013	Sep. 30, 2014
Related Party Transaction [Line Items]
Impairment of investment in related company	$ 0	$ 25,000,000	[1]	$ 131,000,000	[1]
Dividend, Noncash, Ownership interest in Subsidiary							70,000,000
Payments of Dividends	1,280,000,000	591,000,000		775,000,000
The Dow Chemical Company [Member]
Related Party Transaction [Line Items]
Service Fee with Parent	10.00%
Notes Receivable, Related Parties	1,200,000,000	2,400,000,000				2,400,000,000
Line of Credit Facility, Maximum Borrowing Capacity	1,000,000,000
Notes Receivable, Related Parties, Noncurrent	875,000,000	843,000,000				843,000,000
Payments of Dividends		591,000,000
Proceeds from Dividends Received	12,000,000	16,000,000		25,000,000
Proceeds from Sale of Productive Assets	145,000,000
Gain (Loss) on Sale of Assets and Asset Impairment Charges	66,000,000
Dow Quimica Argentina S.A. [Member]
Related Party Transaction [Line Items]
Ownership Interest Percentage, Related Company	23.00%	23.00%				23.00%
Cost Method Investments	0	0				0
GWN Holding, Inc. [Member]
Related Party Transaction [Line Items]
Ownership Interest Percentage, Related Company	0.00%	6.00%				6.00%		6.30%
Cost Method Investments	0	10,000,000				10,000,000		10,000,000
Modeland International Holdings, Inc [Member]
Related Party Transaction [Line Items]
Impairment of investment in related company				131,000,000
Dividends declared				9,000,000
General and Administrative Expense [Member] | The Dow Chemical Company [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	26,000,000	25,000,000		32,000,000
Estimated Federal Tax Liability, Related Party [Member] | The Dow Chemical Company [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Tax Payment	579,000,000	163,000,000		0
Retained Earnings [Member]
Related Party Transaction [Line Items]
Dividends declared	1,289,000,000	661,000,000		784,000,000
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Dow Quimica Argentina S.A. [Member]
Related Party Transaction [Line Items]
Impairment of investment in related company						25,000,000
Union Carbide Subsidiary C, Inc. [Member]
Related Party Transaction [Line Items]
Ownership Interest, Subsidiary							100.00%
The Dow Chemical Company [Member] | GWN Holding, Inc. [Member]
Related Party Transaction [Line Items]
Ownership Interest Percentage, Related Company								93.70%
Purchases from Dow [Member] | Cost of Sales [Member] | The Dow Chemical Company [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	2,900,000,000	2,900,000,000		3,100,000,000
Activity Based Costs [Member] | Cost of Sales [Member] | The Dow Chemical Company [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	$ 53,000,000	$ 46,000,000		$ 51,000,000

[1] See Note 17 for additional information.

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Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Current Assets
Cash and cash equivalents	$ 23	$ 33
Accounts receivable:
Trade (net of allowance for doubtful receivables - 2014: $-; 2013: $-)	29	25
Related companies	1,285	390
Other	67	40
Income taxes receivable	476	40
Notes receivable from related companies	1,292	2,404
Inventories	378	404
Deferred income taxes and other current assets	139	101
Total current assets	3,689	3,437
Investments
Investments in related companies	813	823
Investments in nonconsolidated affiliates	13	6
Other investments	8	9
Noncurrent receivables	44	30
Noncurrent receivables from related companies	131	166
Total investments	1,009	1,034
Property
Property	6,831	7,079
Less accumulated depreciation	5,679	5,840
Net property	1,152	1,239
Other Assets
Intangible assets (net of accumulated amortization 2014: $73; 2013: $72)	15	10
Deferred income tax assets - noncurrent	441	692
Asbestos-related insurance receivables - noncurrent	62	86
Deferred charges and other assets	45	51
Total other assets	563	839
Total Assets	6,413	6,549
Current Liabilities
Notes payable - related companies	43	34
Long-term debt due within one year	1	0
Accounts payable:
Trade	248	215
Related companies	872	398
Other	17	21
Income taxes payable	20	213
Asbestos-related liabilities - current	105	91
Accrued and other current liabilities	192	182
Total current liabilities	1,498	1,154
Long-Term Debt	481	471
Other Noncurrent Liabilities
Pension and other postretirement benefits - noncurrent	1,051	684
Asbestos-related liabilities - noncurrent	438	434
Other noncurrent obligations	136	95
Total other noncurrent liabilities	1,625	1,213
Stockholder's Equity
Common stock (authorized and issued: 1,000 shares of $0.01 par value each)	0	0
Additional paid-in capital	312	312
Retained earnings	3,740	4,442
Accumulated other comprehensive loss	(1,243)	(1,045)
Union Carbide Corporation's stockholder's equity	2,809	3,709
Noncontrolling interests	0	2
Total equity	2,809	3,711
Total Liabilities and Equity	$ 6,413	$ 6,549

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INVENTORIES

12 Months Ended

Dec. 31, 2014

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

INVENTORIES

The following table provides a breakdown of inventories:

Inventories at December 31 In millions	2014		2013
Finished goods	$	205	$	233
Work in process	30		31
Raw materials	45		50
Supplies	98		90
Total inventories	$	378	$	404

The reserves reducing inventories from a FIFO basis to a LIFO basis amounted to $125 million at December 31, 2014 and $132 million at December 31, 2013. Inventories that were valued on a LIFO basis, principally U.S. chemicals and plastics product inventories, represented 67 percent of the total inventories at December 31, 2014 and 70 percent of the total inventories at December 31, 2013.

A reduction of certain inventories resulted in the liquidation of some of the Corporation's LIFO inventory layers which had an immaterial impact on pretax income in 2014, 2013 and 2012.

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DIVESTITURES

12 Months Ended

Dec. 31, 2014

Divestitures [Abstract]

Divestitures [text block]

DIVESTITURES

Divestiture of Polypropylene Licensing and Catalysts Business

On October 11, 2013, Dow entered into a definitive agreement to sell its global Polypropylene Licensing and Catalysts business to W.R. Grace & Co., which included the Corporation's polypropylene catalysts manufacturing facility in Norco, Louisiana as well as customer contracts, accounts receivable, licenses, intellectual property and inventory. On December 2, 2013, the sale was completed and proceeds allocated to the Corporation for the sale were $398 million, net of working capital adjustments and costs to sell, with proceeds subject to customary post-closing adjustments, which were finalized in the fourth quarter of 2014. The carrying amount of the assets divested on December 2, 2013, are noted below:

Assets Divested In millions	December 2, 2013
Accounts receivable	$	4
Inventories	19
Net property	7
Total assets divested	$	30

The Corporation recognized a pretax gain of $368 million on the sale, included in "Sundry income (expense) - net" in the consolidated statements of operations and an after-tax gain of $233 million.

Post-closing adjustments were finalized in the fourth quarter of 2014 and the Corporation recorded a pretax gain of $4 million ($3 million after tax) for the post-closing adjustments. The gain was included in "Sundry income (expense) - net" in the consolidated statements of operations.

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LEASED PROPERTY

12 Months Ended

Dec. 31, 2014

Leases [Abstract]

Leases of Lessee Disclosure [Text Block]

LEASED PROPERTY

The Corporation has leases primarily for facilities and distribution equipment. The future minimum rental payments under leases with remaining noncancelable terms in excess of one year are as follows:

Minimum Lease Commitments at December 31, 2014 In millions
2015	$	7
2016	5
2017	4
2018	3
2019	2
2020 and thereafter	8
Total	$	29

Rental expenses under leases were $27 million in 2014, $31 million in 2013 and $35 million in 2012.

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SUPPLEMENTARY INFORMATION

12 Months Ended

Dec. 31, 2014

Supplementary Information [Abstract]

Supplementary Information [Text Block]

SUPPLEMENTARY INFORMATION

Sundry Income (Expense) - Net
In millions	2014			2013			2012
Dow administrative and overhead fees (1)	$	(26	)	$	(25	)	$	(32	)
Net commission expense - related company (1)	(21		)	(17		)	(35		)
Dividend income - related companies (1)	12			16			25
Net gain on sale of railcar fleet (1)	66			—			—
Reclassification of cumulative translation adjustment	(16		)	—			—
Net gain on sale of Dow's Polypropylene Licensing and Catalysts business (2)	4			368			—
Net gain on sales of property (1)	4			—			5
Impairment of investment in related company (1)	—			(25		)	(131		)
Foreign exchange loss	—			(2		)	—
Other - net	(9		)	(7		)	(14		)
Total sundry income (expense) - net	$	14		$	308		$	(182	)

(1) See Note 17 for additional information.

(2) See Note 4 for additional information.

Accrued and Other Current Liabilities

"Accrued and other current liabilities" were $192 million at December 31, 2014 and $182 million at December 31, 2013. The current portion of the Corporation's accrued obligations for environmental matters, which is a component of "Accrued and other current liabilities," was $69 million at December 31, 2014 and $58 million at December 31, 2013 (see Note 13 for additional information). No other component of accrued and other current liabilities was more than 5 percent of total current liabilities.

Supplementary Cash Flow Information
In millions	2014		2013		2012
Cash payments for interest	$	37	$	37	$	37
Cash payments (refunds) for income taxes (1)	$	555	$	322	$	(94	)

(1) Amounts reported in 2013 have been adjusted to reflect an additional $30 million in cash paid for income taxes.

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INCOME TAXES (Schedule of Deferred Tax Balances) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014		Dec. 31, 2013
Income Tax Expense (Benefit), Continuing Operations [Abstract]
Property, Deferred Tax Assets	$ 0		$ 0
Loss and Credit Carryforwards, Deferred Tax Assets	82		95
Postretirement benefit obligations, deferred tax assets	818		706
Other accruals and reserves, deferred tax assets	263	[1]	656
Inventory, deferred tax assets	53		30
Long-term Debt, Deferred Tax Assets	0		0
Investments, Deferred Tax Assets	0		7
Other - net, deferred tax assets	2		2
Subtotal, deferred tax assets	1,218		1,496
Valuation allowances, deferred tax assets	(53)		(50)
Total, deferred tax assets	1,165		1,446
Property, deferred tax liabilities	197		235
Deferred Tax Liabilities, Loss and credit carryforward	0		0
Postretirement Benefits, Deferred Tax Liabilities	420		440
Other accruals and Reserves, Deferred Tax Liabilities	3		4
Inventory, deferred tax liabilities	0		0
Long-term debt, deferred tax liabilities	0		1
Investments, Deferred Tax Liabilities	1		0
Other - net, deferred tax liabilities	0		1
Total, deferred tax liabilities	$ 621		$ 681

[1] The reduction in 2014 reflects the impact of accelerated deductions.

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INVESTMENTS IN RELATED COMPANIES

12 Months Ended

Dec. 31, 2014

Investments in Related Companies [Abstract]

Cost-method Investments, Description [Text Block]

INVESTMENTS IN RELATED COMPANIES

The Corporation's ownership interests in related companies at December 31, 2014 and 2013 were as follows:

Investments in Related Companies at December 31	Ownership Interest				Investment Balance
In millions (except percentages)	2014		2013		2014		2013
Dow International Holdings Company	19	%	19	%	$	807	$	807
Dow Quimica Argentina S.A.	23	%	23	%	—		—
Dow Quimica Mexicana S.A. de C.V.	15	%	15	%	5		5
GWN Holding, Inc.	—	%	6	%	—		10
Other	—	%	—	%	1		1
Total Investments in Related Companies					$	813	$	823

In the fourth quarter of 2014, UCC authorized a distribution to Dow of its shares of common stock in GWN Holdings, Inc. ("GWN"). Prior to the stock distribution, GWN was owned 6.3 percent by UCC and 93.7 percent by Dow and its other wholly owned subsidiaries. Prior to this distribution, UCC's investment in GWN was $10 million, accounted for as a cost method investment. No gain or loss was recorded on the stock distribution.

In the fourth quarter of 2013, the Corporation recorded an impairment charge of $25 million for the full value of the cost method investment in Dow Quimica Argentina S.A. The related company investment, classified as a Level 3 measurement, was valued using unobservable inputs. The impairment charge was triggered by ongoing losses in the entity and is included in "Sundry income (expense) - net" in the consolidated statements of operations.

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FAIR VALUE MEASUREMENTS (Basis of Fair Value Measurements on a Recurring Basis) (Details) (Fair Value, Measurements, Recurring [Member], Fair Value, Inputs, Level 2 [Member], USD $) In Millions, unless otherwise specified	Dec. 31, 2014		Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term Debt, Fair Value	$ 601	[1]	$ 556	[1]
Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	$ 5	[2]	$ 5	[2]

[1] See Note 10 for information on fair value measurements of long-term debt.

[2] Included in “Other investments” in the consolidated balance sheets.

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PROPERTY

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

PROPERTY

Property at December 31	Estimated Useful
In millions	Lives (Years)	2014		2013
Land	—	$	49	$	51
Land and waterway improvements	15-25	208		204
Buildings	5-50	419		412
Machinery and equipment	3-20	5,744		5,862
Utility and supply lines	5-20	158		157
Other property	3-30	96		291
Construction in progress	—	157		102
Total property		$	6,831	$	7,079

In millions	2014		2013		2012
Depreciation expense	$	176	$	204	$	217
Manufacturing maintenance and repair costs	$	295	$	304	$	324
Capitalized interest	$	5	$	5	$	8

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NONCONSOLIDATED AFFILIATES

12 Months Ended

Dec. 31, 2014

Nonconsolidated Affiliates [Abstract]

Equity Method Investments Disclosure [Text Block]

NONCONSOLIDATED AFFILIATES

The Corporation's investments in companies accounted for by the equity method (“nonconsolidated affiliates”) were $13 million at December 31, 2014 and $6 million at December 31, 2013. Dividends received from nonconsolidated affiliates were zero in 2014, $62 million in 2013 and $72 million in 2012. Undistributed earnings of nonconsolidated affiliates included in retained earnings were $7 million at December 31, 2014 and zero at December 31, 2013.

All of the nonconsolidated affiliates in which the Corporation has investments are privately held companies; therefore, quoted market prices are not available.

Principal Nonconsolidated Affiliates

The Corporation's principal nonconsolidated affiliates and the Corporation's ownership interest for each at December 31, 2014, 2013 and 2012 are shown below:

Principal Nonconsolidated Affiliates at December 31	Ownership Interest
	2014	2013	2012
Nippon Unicar Company Limited	—%	—%	50%
Univation Technologies, LLC	—%	—%	50%

Divestiture

On January 31, 2013, UCC entered into a definitive agreement to sell its 50 percent ownership interest in NUC to TonenGeneral Sekiyu K. K. On July 1, 2013, the sale was completed for $13 million. As a result of this share sale, the Corporation reclassified a $20 million gain, primarily attributable to cumulative translation adjustments, from "Accumulated other comprehensive loss" into earnings and is included in "Sundry income (expense) - net" in the consolidated statements of operations for the year ended December 31, 2013. Including this reclassification, the sale resulted in no pretax gain or loss.

Stock Dividend

On September 26, 2013, UCC declared a stock dividend to Dow of its 100 percent ownership interest in Union Carbide Subsidiary C, Inc., which included UCC's full ownership interest in Univation. This stock dividend was effective on September 29, 2013 and totaled $70 million.

Summarized Income Statement Information
In millions	2014		2013 (1)		2012
Sales	$	—	$	452	$	773
Gross profit	$	—	$	208	$	209
Net income	$	—	$	142	$	112

(1) Income statement information for NUC is for the six-month period ended June 30, 2013 and income statement information for Univation is for the nine-month period ended September 30, 2013.

The Corporation had no investment in principal nonconsolidated affiliates at December 31, 2014 and December 31, 2013, and its equity in earnings was zero in 2014, $84 million in 2013 and $59 million in 2012. The summarized income statement information presented represents the combined accounts (at 100 percent) of the principal nonconsolidated affiliates. See Note 3 for details on the 2012 impairment charge related to NUC.

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INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2014

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Intangible Assets Disclosure [Text Block]

INTANGIBLE ASSETS

The following table provides information regarding the Corporation's intangible assets:

Intangible Assets at December 31			2014							2013
In millions	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Intangible assets with finite lives:
Licenses and intellectual property	$	33	$	(33	)	$	—	$	33	$	(33	)	$	—
Software	55		(40		)	15		49		(39		)	10
Total intangible assets	$	88	$	(73	)	$	15	$	82	$	(72	)	$	10

The following table provides information regarding amortization expense:

Amortization Expense In millions	2014		2013		2012
Software (1)	$	2	$	2	$	2

(1) Included in “Cost of sales” in the consolidated statements of operations.

Total estimated amortization expense for the next five fiscal years is as follows:

Estimated Amortization Expense for Next Five Years In millions
2015	$	2
2016	$	3
2017	$	3
2018	$	3
2019	$	2

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SUPPLEMENTARY INFORMATION (Other Income Statement and Cash Flow Information) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013		Dec. 31, 2012
Supplementary Information [Abstract]
Cash payments for interest	$ 37	$ 37		$ 37
Cash payments (refunds) for income taxes	555	322	[1]	(94)
Additional 2013 Income Taxes Paid		$ 30

[1] Amounts reported in 2013 have been adjusted to reflect an additional $30 million in cash paid for income taxes.

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INCOME TAXES (Uncertain Tax Position) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Reconciliation of Total Gross Unrecognized Tax Benefits [Roll Forward]
Gross unrecognized tax benefits, beginning balance	$ 4	$ 166	$ 161
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions	0	1	0
Decreases related to positions taken on items from prior years	0	(7)	0
Increases related to positions taken in the current year	0	0	8
Settlement of uncertain tax positions with tax authorities	0	(154)	0
Decreases due to expiration of statutes of limitations	(3)	(2)	(3)
Gross unrecognized tax benefits, ending balance	1	4	166
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense	(6)	(15)	(1)
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Upper Bound	1
Federal Income Tax [Member]
Reconciliation of Total Gross Unrecognized Tax Benefits [Roll Forward]
Earliest open year	2004	2004
State and Local Income Tax [Member]
Reconciliation of Total Gross Unrecognized Tax Benefits [Roll Forward]
Earliest open year	2004	2004
Non-Income Tax Contingencies Related To Issues In US And Foreign Locations [Member]
Reconciliation of Total Gross Unrecognized Tax Benefits [Roll Forward]
Loss Contingency, Estimate of Possible Loss	$ 0	$ 0

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COMMITMENTS AND CONTINGENT LIABILITIES (Asbestos Related Matters) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2002
Loss Contingencies [Line Items]
Liability For Asbestos Claims Gross	$ 513	$ 513	$ 501	$ 602	$ 2,200
Loss Contingency, Range of Possible Loss, Minimum	540	540
Loss Contingency, Range of Possible Loss, Maximum	640	640
Asbestos Related Charges Credit	78	78	0	0
Percentage of Recorded Asbests Liability Related to Pending Claims	22.00%	22.00%	19.00%
Percentage of Recorded Asbestos Liability Related to Future Claims	78.00%	78.00%	81.00%
Estimated Insurance Recoveries	79	79	91		1,350
Defense and Resolution Costs Asbestos Related Claims		108	107	100
Estimated Insurance Recoveries of Defense and Resolution Costs [Member] [Domain]
Loss Contingencies [Line Items]
Estimated Insurance Recoveries	69	69	66
Estimated Insurance Recoveries Carriers Without Settlement Agreements [Member]
Loss Contingencies [Line Items]
Estimated Insurance Recoveries	$ 10	$ 10	$ 25

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SUPPLEMENTARY INFORMATION (Accrued and other current liabilities) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Accrued and other current liabilities	$ 192	$ 182
Accrued and Other Current Liabilities [Member]
Accrued Environmental Loss Contingencies, Current	$ 69	$ 58

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INVESTMENTS IN RELATED COMPANIES (Tables)

12 Months Ended

Dec. 31, 2014

Investments in Related Companies [Abstract]

Schedule of Cost Method Investments [Table Text Block]

Investments in Related Companies at December 31	Ownership Interest				Investment Balance
In millions (except percentages)	2014		2013		2014		2013
Dow International Holdings Company	19	%	19	%	$	807	$	807
Dow Quimica Argentina S.A.	23	%	23	%	—		—
Dow Quimica Mexicana S.A. de C.V.	15	%	15	%	5		5
GWN Holding, Inc.	—	%	6	%	—		10
Other	—	%	—	%	1		1
Total Investments in Related Companies					$	813	$	823

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PROPERTY (Schedule of Other Items Related to Property) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 176	$ 204	$ 217
Manufacturing maintenance and repair costs	295	304	324
Capitalized interest	$ 5	$ 5	$ 8

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NOTES PAYABLE AND LONG-TERM DEBT

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

NOTES PAYABLE AND LONG-TERM DEBT

Notes Payable at December 31 In millions	2014			2013
Notes payable - related companies	$	43		$	34
Year-end average interest rates	0.82		%	0.92		%

Long-Term Debt at December 31	2014					2013
	Average					Average
In millions	Rate		2014			Rate		2013
Promissory notes and debentures:
Debentures due 2023	7.875	%	$	175		7.875	%	$	175
Debentures due 2025	6.79	%	12			6.79	%	12
Debentures due 2025	7.50	%	150			7.50	%	150
Debentures due 2096	7.75	%	135			7.75	%	135
Capital lease obligations	—		11			—		—
Unamortized debt discount	—		(1		)	—		(1		)
Long-term debt due within one year	—		(1		)	—		—
Total long-term debt			$	481				$	471

Annual Installments on Long-Term Debt for Next Five Years In millions
2015	$	1
2016	$	1
2017	$	1
2018	$	1
2019	$	1

Debt Covenants and Default Provisions

The Corporation's outstanding public debt has been issued under indentures which contain, among other provisions, covenants that the Corporation must comply with while the underlying notes are outstanding. Such covenants are typically based on the Corporation's size and financial position and include, subject to the exceptions and qualifications contained in the indentures, obligations not to (i) allow liens on principal U.S. manufacturing facilities, (ii) enter into sale and lease-back transactions with respect to principal U.S. manufacturing facilities, or (iii) merge into or consolidate with any other entity or sell or convey all or substantially all of its assets. Failure of the Corporation to comply with any of these covenants could, after the passage of any applicable grace period, result in a default under the applicable indenture which would allow the note holders to accelerate the due date of the outstanding principal and accrued interest on the subject notes.

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

12 Months Ended

Dec. 31, 2014

Accumulated Other Comprehensive Income [Abstract]

Comprehensive Income (Loss) Note [Text Block]

ACCUMULATED OTHER COMPREHENSIVE LOSS

The following table provides an analysis of the changes in accumulated other comprehensive loss for the years ended December 31, 2014, 2013 and 2012:

Accumulated Other Comprehensive Loss
In millions	2014			2013			2012
Cumulative Translation Adjustments at beginning of year	$	(78	)	$	(56	)	$	(52	)
Translation adjustments	(1		)	(1		)	(4		)
Reclassification to earnings - Sundry income (expense) - net (1)	16			(21		)	—
Balance at end of period	$	(63	)	$	(78	)	$	(56	)
Pension and Other Postretirement Benefit Plans at beginning of year	$	(967	)	$	(1,289	)	$	(1,080	)
Net gain (loss) during period (net of tax of $(165), $122, $(141)) (2) (3)	(273		)	263			(250		)
Prior service credit arising during the period (net of tax of $13, $-, $-)	25			—			—
Amortization of prior service cost included in net periodic pension costs (net of tax of $2, $2, $2) (2) (3)	4			4			3
Amortization of net loss included in net periodic pension costs (net of tax of $25, $33, $22) (2) (3)	31			55			38
Balance at end of period	$	(1,180	)	$	(967	)	$	(1,289	)
Total accumulated other comprehensive loss	$	(1,243	)	$	(1,045	)	$	(1,345	)

(1) In 2014, reclassification resulted from the divestiture or liquidation of subsidiaries. In 2013, reclassification resulted from the divestiture of a nonconsolidated affiliate.

(2)    See Note 15 for additional information.

(3)    Tax amounts are included in "Provision for income taxes" in the consolidated statements of operations.

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INVENTORIES (Schedule of Inventories) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Inventory Disclosure [Abstract]
Finished goods	$ 205	$ 233
Work in process	30	31
Raw materials	45	50
Supplies	98	90
Total inventories	378	404
Inventory, LIFO Reserve	$ 125	$ 132
Percentage of LIFO Inventory	67.00%	70.00%

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LEASED PROPERTY (Tables)

12 Months Ended

Dec. 31, 2014

Leases [Abstract]

Operating Leases of Lessee Disclosure [Table Text Block]

Minimum Lease Commitments at December 31, 2014 In millions
2015	$	7
2016	5
2017	4
2018	3
2019	2
2020 and thereafter	8
Total	$	29

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Consolidated Balance Sheets (Parenthetical) (USD $) In Millions, except Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Current Assets
Allowance for Doubtful Accounts Receivable	$ 0	$ 0
Other Assets
Other Intangible Assets (accumulated amortization)	$ 73	$ 72
Stockholders' Equity
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	1,000	1,000
Common Stock, Shares, Issued	1,000	1,000

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RESTRUCTURING

12 Months Ended

Dec. 31, 2014

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

RESTRUCTURING

On October 22, 2012, the Board of Directors of the Corporation approved a restructuring plan to improve the cost effectiveness of the Corporation's global operations. The restructuring plan affected approximately 100 positions and resulted in the shutdown of certain manufacturing facilities. These actions were substantially completed at December 31, 2014.

As a result of the restructuring activities, the Corporation recorded pretax restructuring charges of $71 million in the fourth quarter of 2012 consisting of costs associated with exit or disposal activities of $13 million, severance costs of $10 million and asset write-downs and write-offs of $48 million. The impact of these charges is shown as "Restructuring charges (credits)" in the consolidated statements of operations.

Details on the components of the restructuring charges are discussed below:

Cost Associated with Exit or Disposal Activities

The restructuring charges for costs associated with exit or disposal activities totaled $13 million in the fourth quarter of 2012 for contract cancellations fees.

Severance

The restructuring charges in the fourth quarter of 2012 included severance of $10 million for the separation of approximately 100 employees under the terms of the Corporation's ongoing benefit arrangements, primarily by March 31, 2015. At December 31, 2014, severance of $9 million had been paid and a liability of $1 million remained for nine employees.

Impairment of Long-Lived Assets, Other Assets and Equity Method Investments

The restructuring charges related to the write-down and write-off of assets in the fourth quarter of 2012 total $48 million. Details regarding the write-downs and write-offs are as follows:

• Certain oxygenated solvents manufacturing facilities in Texas City, Texas, have been consolidated and/or shut down, resulting in an asset write-down of $36 million. The facilities were shut down in the fourth quarter of 2012.

• A performance monomer manufacturing facility in South Charleston, West Virginia, was shut down, resulting in an asset write-down of $1 million and the write-off of other assets totaling $2 million. The assets were shut down in the fourth quarter of 2012.

• Due to a change in the Corporation's strategy regarding its ownership in Nippon Unicar Company Limited ("NUC"), a 50:50 joint venture, the Corporation had determined its equity investment in NUC to be other-than-temporarily impaired and recorded a $9 million write-down of its interest in NUC. UCC completed the sale of its 50 percent ownership interest in NUC on July 1, 2013.

The following table summarizes the activities related to the Corporation's restructuring reserve:

Restructuring Activities	Costs Associated with Exit or Disposal Activities			Severance Costs			Impairment of Long-Lived Assets, Other Assets and Equity Method Investments
In millions										Total
Restructuring charges recognized in the fourth quarter of 2012	$	13		$	10		$	48		$	71
Charges against the reserve	—			—			(48		)	(48		)
Reserve balance at December 31, 2012	$	13		$	10		$	—		$	23
Cash payments	(2		)	(6		)	—			(8		)
Reserve balance at December 31, 2013	$	11		$	4		$	—		$	15
Adjustments to the reserve	(3		)	—			—			(3		)
Cash payments	(2		)	(3		)	—			(5		)
Reserve balance at December 31, 2014	$	6		$	1		$	—		$	7

The reserve balance is included in the consolidated balance sheets as "Accrued and other current liabilities" and "Other noncurrent obligations."

The Corporation expects to incur additional costs in the future related to its restructuring activities, as UCC continually looks for ways to enhance the efficiency and cost effectiveness of its operations. Future costs are expected to include demolition costs related to closed facilities; these will be recognized as incurred. The Corporation 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.

In the first quarter of 2012, the Corporation recorded restructuring charges totaling $3 million related to a workforce reduction of approximately 20 employees. In the third quarter of 2012, all severance related to this restructuring charge was paid.

2014 Adjustments to the 4Q12 Restructuring Plan

In 2014, the Corporation reduced the 4Q12 restructuring reserve related to contract cancellation fees by $3 million.

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FINANCIAL INSTRUMENTS (Investments) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Financial Instruments [Abstract]
Investing Results, Proceeds from sales of available-for-sale securities	$ 0	$ 0	$ 0

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INCOME TAXES (Schedule of Domestic and Foreign Components of Income Before Income Taxes and Tax Reconciliation) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013		Dec. 31, 2012
Income Tax Disclosures [Abstract]
Income (Loss) Before Income Taxes, Domestic	$ 896	$ 1,077	[1]	$ (95)
Income (Loss) Before Income Taxes, Foreign	(5)	(10)		(2)
Income (Loss) Before Income Taxes	(891)	(1,067)		97
Taxes at U.S. statutory rate	312	374		(34)
Equity earnings effect	(4)	(1)		2
Effective Income Tax Rate Reconciliation, Deduction, Qualified Production Activity, Amount	26	7		0
Benefit of dividend income from investments in related companies	0	(6)		(9)
Income Tax Rate Reconciliation, Audit settlement and court case	0	20		0
Unrecognized tax benefits	0	(30)		9
Impairment of investment in related company	0	1		46
Federal tax accrual adjustments	(14)	(5)		(8)
State and local tax impact	42	(38)		12
Other - net	(6)	11		(1)
Total tax provision (credit)	$ 304	$ 319		$ 17
Effective tax rate	34.10%	29.90%		(17.50%)

[1] In 2013, the domestic component of "Income Before Income Taxes" included a gain of $368 million for the sale of Dow's Polypropylene Licensing and Catalysts business.

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NOTES PAYABLE AND LONG-TERM DEBT (Schedule of Long-Term Debt) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Long-Term Debt	$ 481	$ 471
Unamortized debt discount	(1)	(1)
Long-term Debt due within one year	(1)	0
Final Maturity 2023 [Member]
Debt Instrument [Line Items]
Average Interest Rate in Period	7.875%	7.875%
Long-Term Debt	175	175
Final Maturity 2025 (a) [Member]
Debt Instrument [Line Items]
Average Interest Rate in Period	6.79%	6.79%
Long-Term Debt	12	12
Final Maturity 2025 (b) [Member]
Debt Instrument [Line Items]
Average Interest Rate in Period	7.50%	7.50%
Long-Term Debt	150	150
Final Maturity 2096 [Member]
Debt Instrument [Line Items]
Average Interest Rate in Period	7.75%	7.75%
Long-Term Debt	135	135
Capital Lease Obligations [Member]
Debt Instrument [Line Items]
Long-Term Debt	$ 11	$ 0

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BUSINESS AND GEOGRAPHIC AREAS

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Business and Geographic Areas [Text Block]

BUSINESS AND GEOGRAPHIC AREAS

Dow conducts its worldwide operations through global businesses, and the Corporation's business activities comprise components of Dow's global businesses rather than stand-alone operations. The Corporation sells its products to Dow in order to simplify the customer interface process at market-based prices in accordance with Dow's intercompany pricing policy. Because there are no separable reportable business segments for the Corporation and no detailed business information is provided to a chief operating decision maker regarding the Corporation's stand-alone operations, the Corporation's results are reported as a single operating segment.

Sales are attributed to geographic areas based on customer location; long-lived assets are attributed to geographic areas based on asset location. Sales to external customers and long-lived assets by geographic area were as follows:

Geographic Area Information In millions	United States		Asia Pacific		Rest of World		Total
2014
Sales to external customers (1)	$	62	$	1	$	19	$	82
Long-lived assets	$	1,113	$	6	$	33	$	1,152
2013
Sales to external customers (1)	$	100	$	43	$	18	$	161
Long-lived assets	$	1,197	$	6	$	36	$	1,239
2012
Sales to external customers (1)	$	98	$	64	$	15	$	177
Long-lived assets	$	1,287	$	8	$	39	$	1,334

(1) Of the total sales to external customers, China was less than 1 percent in 2014, approximately 21 percent in 2013 and 21 percent in 2012; and Malaysia was less than 1 percent in 2014, approximately 4 percent in 2013 and 10 percent in 2012, both of which are included in Asia Pacific.

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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Change in Projected Benefit Obligations, Plan Assets and Funded Status of All Significant Plans) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Net Periodic Benefit Cost	$ 53	$ 59	$ 49
Defined Benefit Plan, Amortization of Net Gains (Losses)	(87)
Defined Benefit Plan, Change in Benefit Obligations [Roll Forward]
Benefit Obligations, Beginning Balance	3,995	4,433
Service cost	30	31	28
Interest cost	183	165	189
Defined Benefit Plan, Plan Amendments	(38)	0
Actuarial changes in assumptions and experience	531	(342)
Benefits paid	(340)	(285)
Other	(16)	(7)
Benefit Obligations, Ending Balance	4,345	3,995	4,433
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair Value of Plan Assets, Beginning	3,586	3,548
Actual return on plan assets	312	174
Employer contributions	2	158
Asset transfer	(17)	(9)
Benefits Paid	(340)	(285)
Fair Value of Plan Assets, Ending	3,543	3,586	3,548
Funded status at end of year	(802)	(409)
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract]
Current liabilities	(1)	(1)
Noncurrent liabilities	(801)	(408)
Net amounts recognized in the consolidated balance sheets	(802)	(409)
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract]
Net loss (gain)	1,955	1,570
Prior service cost (credit)	(19)	26
Pretax balance in AOCI at end of year	1,936	1,596
Defined Benefit Plan, Expected Return on Plan Assets	232	232	235
Defined Benefit Plan, Amortization of Prior Service Cost (Credit)	6	7	7
Defined Benefit Plan, Amortization of Gains (Losses)	(66)	(88)	(60)
Defined Benefit Plan, Future Amortization of Prior Service Cost (Credit)	1
Employer Group Waiver Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Prescription Drug Benefit, Reduction in Accumulated Postretirement Benefit Obligation for Subsidy		(55)
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Net Periodic Benefit Cost	4	15	17
Defined Benefit Plan, Change in Benefit Obligations [Roll Forward]
Benefit Obligations, Beginning Balance	302	414
Service cost	1	2	2
Interest cost	13	14	17
Defined Benefit Plan, Plan Amendments	0	0
Actuarial changes in assumptions and experience	(13)	(102)
Benefits paid	(33)	(26)
Other	0	0
Benefit Obligations, Ending Balance	270	302	414
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair Value of Plan Assets, Beginning	0	0
Actual return on plan assets	0	0
Employer contributions	0	0
Asset transfer	0	0
Benefits Paid	0	0
Fair Value of Plan Assets, Ending	0	0	0
Funded status at end of year	(270)	(302)
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract]
Current liabilities	(27)	(33)
Noncurrent liabilities	(243)	(269)
Net amounts recognized in the consolidated balance sheets	(270)	(302)
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract]
Net loss (gain)	(109)	(107)
Prior service cost (credit)	(1)	(1)
Pretax balance in AOCI at end of year	(110)	(108)
Defined Benefit Plan, Expected Return on Plan Assets	0	0	0
Defined Benefit Plan, Amortization of Prior Service Cost (Credit)	0	(1)	(2)
Defined Benefit Plan, Amortization of Gains (Losses)	10	0	0
Defined Benefit Plan, Future Amortization of Prior Service Cost (Credit)	$ (11)

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SUPPLEMENTARY INFORMATION (Tables)

12 Months Ended

Dec. 31, 2014

Supplementary Information [Abstract]

Sundry Income, Net [Table Text Block]

Sundry Income (Expense) - Net
In millions	2014			2013			2012
Dow administrative and overhead fees (1)	$	(26	)	$	(25	)	$	(32	)
Net commission expense - related company (1)	(21		)	(17		)	(35		)
Dividend income - related companies (1)	12			16			25
Net gain on sale of railcar fleet (1)	66			—			—
Reclassification of cumulative translation adjustment	(16		)	—			—
Net gain on sale of Dow's Polypropylene Licensing and Catalysts business (2)	4			368			—
Net gain on sales of property (1)	4			—			5
Impairment of investment in related company (1)	—			(25		)	(131		)
Foreign exchange loss	—			(2		)	—
Other - net	(9		)	(7		)	(14		)
Total sundry income (expense) - net	$	14		$	308		$	(182	)

(1) See Note 17 for additional information.

(2) See Note 4 for additional information.

Supplemental Disclosure of Cash Flow Information [Table Text Block]

Supplementary Cash Flow Information
In millions	2014		2013		2012
Cash payments for interest	$	37	$	37	$	37
Cash payments (refunds) for income taxes (1)	$	555	$	322	$	(94	)

(1) Amounts reported in 2013 have been adjusted to reflect an additional $30 million in cash paid for income taxes.

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COMMITMENTS AND CONTINGENT LIABILITIES

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

COMMITMENTS AND CONTINGENT LIABILITIES

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 December 31, 2014, the Corporation had accrued obligations of $132 million for probable environmental remediation and restoration costs, including $22 million for the remediation of Superfund sites. This is management's best estimate of the costs for remediation and restoration with respect to environmental matters for which the Corporation 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 Corporation's results of operations, financial condition and cash flows. It is the opinion of the Corporation's management, however, that the possibility is remote that costs in excess of the range disclosed will have a material impact on the Corporation'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, 2013, the Corporation had accrued obligations of $126 million for probable environmental remediation and restoration costs, including $23 million for the remediation of Superfund sites.

The following table summarizes the activity in the Corporation's accrued obligations for environmental matters for the years ended December 31, 2014 and 2013:

Accrued Liability for Environmental Matters
In millions	2014			2013
Balance at January 1	$	126		$	95
Additional accruals	62			80
Charges against reserve	(56		)	(49		)
Balance at December 31	$	132		$	126

The amounts charged to income on a pretax basis related to environmental remediation totaled $62 million in 2014, $80 million in 2013 and $31 million in 2012. Capital expenditures for environmental protection were $6 million in 2014, $2 million in 2013 and $7 million in 2012.

Litigation

The Corporation is involved in a number of legal proceedings and claims with both private and governmental parties. These cover a wide range of matters, including, but not limited to: product liability; trade regulation; governmental regulatory proceedings; health, safety and environmental matters; employment; patents; contracts; taxes; and commercial disputes.

Asbestos-Related Matters

Separately, the Corporation 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 UCC sold in the past, alleged exposure to asbestos-containing products located on UCC's premises, and UCC's responsibility for asbestos suits filed against a former UCC 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 the Corporation's products.

The Corporation expects more asbestos-related suits to be filed against UCC and Amchem in the future, and will aggressively defend or reasonably resolve, as appropriate, both pending and future claims.

Estimating the Liability

Based on a study completed by Analysis, Research & Planning Corporation (“ARPC”) in January 2003, the Corporation increased its December 31, 2002 asbestos-related liability for pending and future claims for the 15-year period ending in 2017 to $2.2 billion, excluding future defense and processing costs. Since then, the Corporation has compared current asbestos claim and resolution activity to the results of the most recent ARPC study at each balance sheet date to determine whether the accrual continues to be appropriate. In addition, the Corporation has requested ARPC to review the Corporation's historical asbestos claim and resolution activity each year since 2004 to determine the appropriateness of updating the most recent ARPC study.

In October 2012, the Corporation requested ARPC to review its historical asbestos claim and resolution activity and determine the appropriateness of updating its December 2010 study. In response to that request, ARPC reviewed and analyzed data through September 30, 2012. In December 2012, based upon ARPC's December 2012 study and the Corporation's own review of the asbestos claim and resolution activity for 2012, it was determined that no adjustment to the accrual was required at December 31, 2012. The Corporation's asbestos-related liability for pending and future claims was $602 million at December 31, 2012.

In October 2013, the Corporation requested ARPC to review its historical asbestos claim and resolution activity and determine the appropriateness of updating its December 2012 study. In response to that request, ARPC reviewed and analyzed data through September 30, 2013. In December 2013, ARPC stated that an update of its study would not provide a more likely estimate of future events than the estimate reflected in its December 2012 study and, therefore, the estimate in that study remained applicable. Based on the Corporation's own review of the asbestos claim and resolution activity and ARPC's response, the Corporation determined that no change to the accrual was required. The Corporation's asbestos-related liability for pending and future claims was $501 million at December 31, 2013.

In October 2014, the Corporation requested ARPC to review its historical asbestos claim and resolution activity and determine the appropriateness of updating its December 2012 study. In response to that request, ARPC reviewed and analyzed data through September 30, 2014. The resulting study, completed by ARPC in December 2014, estimates that the undiscounted cost of disposing of pending and future claims against UCC and Amchem, excluding future defense and processing costs, to be between $540 million and $640 million through 2029 based on the data as of September 30, 2014. As in earlier studies, ARPC provided longer periods of time in its December 2014 study, but also reaffirmed that forecasts for shorter periods of time are more accurate than those for longer periods of time.

In December 2014, based on ARPC's December 2014 study and the Corporation's own review of the asbestos claim and resolution activity, the Corporation determined that an adjustment to the accrual was required due to the increase in mesothelioma claim activity compared with what had been forecasted in the December 2012 study. Accordingly, the Corporation increased its asbestos-related liability for pending and future claims by $78 million and is included in "Asbestos-related charge" in the consolidated statement of operations. The Corporation's asbestos-related liability for pending and future claims was $513 million at December 31, 2014, and approximately 22 percent of the recorded liability related to pending claims and approximately 78 percent related to future claims. At December 31, 2013, approximately 19 percent of the recorded liability related to pending claims and approximately 81 percent related to future claims.

Insurance Receivables

At December 31, 2002, the Corporation increased the receivable for insurance recoveries related to its asbestos liability to $1.35 billion, substantially exhausting its asbestos product liability coverage. The insurance receivable related to the asbestos liability was determined by the Corporation after a thorough review of applicable insurance policies and the 1985 Wellington Agreement, to which the Corporation and many of its liability insurers are signatory parties, as well as other insurance settlements, with due consideration given to applicable deductibles, retentions and policy limits, and taking into account the solvency and historical payment experience of various insurance carriers. The Wellington Agreement and other agreements with insurers are designed to facilitate an orderly resolution and collection of the Corporation's insurance policies and to resolve issues that the insurance carriers may raise.

In September 2003, the Corporation filed a comprehensive insurance coverage case, now proceeding in the Supreme Court of the State of New York, County of New York, seeking to confirm its rights to insurance for various asbestos claims and to facilitate an orderly and timely collection of insurance proceeds (the “Insurance Litigation”). The Insurance Litigation was filed against insurers that were not signatories to the Wellington Agreement and/or did not otherwise have agreements in place with the Corporation regarding their asbestos-related insurance coverage, in order to facilitate an orderly resolution and collection of such insurance policies and to resolve issues that the insurance carriers may raise. Since the filing of the case, the Corporation has reached settlements with most of the carriers involved in the Insurance Litigation and continues to pursue settlement with the remaining carrier.

The Corporation's receivable for insurance recoveries related to its asbestos liability was $10 million at December 31, 2014 and $25 million at December 31, 2013. At December 31, 2014 and 2013, all of the receivable for insurance recoveries was related to insurers that are not signatories to the Wellington Agreement and/or do not otherwise have agreements in place regarding their asbestos-related insurance coverage.

In addition to the receivable for insurance recoveries related to its asbestos liability, the Corporation had receivables for defense and resolution costs submitted to insurance carriers that have settlement agreements in place regarding their asbestos-related insurance coverage. The following table summarizes the Corporation's receivables related to its asbestos-related liability:

Receivables for Asbestos-Related Costs at December 31 In millions	2014		2013
Receivables for defense and resolution costs - carriers with settlement agreements	$	69	$	66
Receivables for insurance recoveries - carriers without settlement agreements	10		25
Total	$	79	$	91

After a review of its insurance policies, with due consideration given to applicable deductibles, retentions and policy limits, and after taking into account the solvency and historical payment experience of various insurance carriers; existing insurance settlements; and the advice of outside counsel with respect to the applicable insurance coverage law relating to the terms and conditions of its insurance policies, the Corporation continues to believe that its recorded receivable for insurance recoveries from all insurance carriers is probable of collection.

The Corporation expenses defense costs as incurred. The pretax impact for defense and resolution costs, net of insurance, was $108 million in 2014, $107 million in 2013 and $100 million in 2012, and was reflected in “Cost of sales” in the consolidated statements of operations.

Summary

The amounts recorded by the Corporation for the asbestos-related liability and related insurance receivable described above were based upon current, known facts. However, future events, such as the number of new claims to be filed and/or received each year, the average cost of disposing of each such claim, coverage issues among insurers, and the continuing solvency of various insurance companies, as well as the numerous uncertainties surrounding asbestos litigation in the United States, could cause the actual costs and insurance recoveries for the Corporation to be higher or lower than those projected or those recorded.

Because of the uncertainties described above, the Corporation's management cannot estimate the full range of the cost of resolving pending and future asbestos-related claims facing UCC and Amchem. The Corporation's management believes that it is reasonably possible that the cost of disposing of the Corporation's asbestos-related claims, including future defense costs, could have a material impact on the Corporation's results of operations and cash flows for a particular period and on the consolidated financial position of the Corporation.

While it is not possible at this time to determine with certainty the ultimate outcome of any of the legal proceedings and claims referred to in this filing, management believes that adequate provisions have been made for probable losses with respect to pending claims and proceedings, and that, except for the asbestos-related matters described above, the ultimate outcome of all known and future claims, after provisions for insurance, will not have a material adverse impact on the results of operations, cash flows and financial position of the Corporation. Should any losses be sustained in connection with any of such legal proceedings and claims in excess of provisions provided and available insurance, they will be charged to income when determinable.

Purchase Commitments

At December 31, 2014, the Corporation had various outstanding commitments for take-or-pay agreements, with remaining terms extending from 1 to 13 years. Such commitments were not in excess of current market prices. The fixed and determinable portion of obligations under purchase commitments at December 31, 2014 is presented in the following table:

Fixed and Determinable Portion of Take-or-Pay Obligations at December 31, 2014 In millions
2015	$	24
2016	22
2017	22
2018	20
2019	18
2020 and beyond	47
Total	$	153