State or other jurisdiction of incorporation or organization | I.R.S. Employer Identification No. |
Large accelerated filer | ☐ | Accelerated filer | ☐ | ||||||||||||||
☑ | Smaller reporting company | ||||||||||||||||
Emerging growth company |
PAGE | ||||||||
Union Carbide Corporation and Subsidiaries |
Union Carbide Corporation and Subsidiaries | ||
PART I |
ITEM 1. BUSINESS |
Remaining Life of Patents Owned at Dec 31, 2021 | United States | Rest of World | ||||||
Within 5 years | 13 | 76 | ||||||
6 to 10 years | 45 | 288 | ||||||
11 to 15 years | 10 | 24 | ||||||
16 to 20 years | 1 | — | ||||||
Total | 69 | 388 |
ITEM 1A. RISK FACTORS |
ITEM 1B. UNRESOLVED STAFF COMMENTS |
ITEM 2. PROPERTIES |
United States: | Hahnville (St. Charles), Louisiana; Seadrift and Texas City, Texas. |
ITEM 3. LEGAL PROCEEDINGS |
ITEM 4. MINE SAFETY DISCLOSURES |
Union Carbide Corporation and Subsidiaries | ||
PART II |
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Net Increase in Market-Related Asset Value Due to Recognition of Prior Gains | |||||
In millions | |||||
2022 | $ | 27 | |||
2023 | 83 | ||||
2024 | 32 | ||||
2025 | 3 | ||||
Total | $ | 145 |
Environmental Sites | UCC-owned Sites 1 | Superfund Sites 2 | ||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||
Number of sites at Jan 1 | 25 | 25 | 66 | 67 | ||||||||||
Sites added during year | 1 | — | 1 | — | ||||||||||
Sites closed during year | — | — | (1) | (1) | ||||||||||
Number of sites at Dec 31 | 26 | 25 | 66 | 66 |
Asbestos-Related Claim Activity | 2021 | 2020 | 2019 | ||||||||
Claims unresolved at Jan 1 | 9,126 | 11,117 | 12,780 | ||||||||
Claims filed | 4,233 | 4,857 | 5,743 | ||||||||
Claims settled, dismissed or otherwise resolved | (4,612) | (6,848) | (7,406) | ||||||||
Claims unresolved at Dec 31 | 8,747 | 9,126 | 11,117 | ||||||||
Claimants with claims against both UCC and Amchem | (2,139) | (2,904) | (3,837) | ||||||||
Individual claimants at Dec 31 | 6,608 | 6,222 | 7,280 |
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Total Daily VAR at Dec 31 | 2021 | 2020 | ||||||||||||
In millions | Year-end | Average | Year-end | Average | ||||||||||
Interest rate | $ | 3 | $ | 3 | $ | 3 | $ | 4 |
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
/s/ | ||||||||
February 4, 2022 |
(In millions) For the years ended Dec 31, | 2021 | 2020 | 2019 | ||||||||
Net trade sales | $ | $ | $ | ||||||||
Net sales to related companies | |||||||||||
Total net sales | |||||||||||
Cost of sales | |||||||||||
Research and development expenses | |||||||||||
Selling, general and administrative expenses | |||||||||||
Restructuring and asset related charges - net | |||||||||||
Integration and separation costs | |||||||||||
Sundry income (expense) - net | ( | ( | |||||||||
Interest income | |||||||||||
Interest expense and amortization of debt discount | |||||||||||
Income before income taxes | |||||||||||
Provision for income taxes | |||||||||||
Net income attributable to Union Carbide Corporation | $ | $ | $ |
(In millions) For the years ended Dec 31, | 2021 | 2020 | 2019 | ||||||||
Net income attributable to Union Carbide Corporation | $ | $ | $ | ||||||||
Other comprehensive income (loss), net of tax | |||||||||||
Cumulative translation adjustments | |||||||||||
Pension and other postretirement benefit plans | ( | ( | |||||||||
Total other comprehensive income (loss) | ( | ( | |||||||||
Comprehensive income attributable to Union Carbide Corporation | $ | $ | $ |
(In millions, except share amounts) At Dec 31, | 2021 | 2020 | ||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Accounts receivable: | ||||||||
Trade (net of allowance for doubtful receivables 2021: $ | ||||||||
Related companies | ||||||||
Other | ||||||||
Income taxes receivable | ||||||||
Notes receivable from related companies | ||||||||
Inventories | ||||||||
Other current assets | ||||||||
Total current assets | ||||||||
Investments | ||||||||
Investments in related companies | ||||||||
Other investments | ||||||||
Noncurrent receivables | ||||||||
Noncurrent receivables from related companies | ||||||||
Total investments | ||||||||
Property | ||||||||
Property | ||||||||
Less accumulated depreciation | ||||||||
Net property | ||||||||
Other Assets | ||||||||
Intangible assets (net of accumulated amortization 2021: $ | ||||||||
Operating lease right-of-use assets | ||||||||
Deferred income tax assets | ||||||||
Deferred charges and other assets | ||||||||
Total other assets | ||||||||
Total Assets | $ | $ | ||||||
Liabilities and Equity | ||||||||
Current Liabilities | ||||||||
Notes payable to related companies | $ | $ | ||||||
Long-term debt due within one year | ||||||||
Accounts payable: | ||||||||
Trade | ||||||||
Related companies | ||||||||
Other | ||||||||
Operating lease liabilities - current | ||||||||
Income taxes payable | ||||||||
Asbestos-related liabilities - current | ||||||||
Accrued and other current liabilities | ||||||||
Total current liabilities | ||||||||
Long-Term Debt | ||||||||
Other Noncurrent Liabilities | ||||||||
Pension and other postretirement benefits - noncurrent | ||||||||
Asbestos-related liabilities - noncurrent | ||||||||
Operating lease liabilities - noncurrent | ||||||||
Other noncurrent obligations | ||||||||
Total other noncurrent liabilities | ||||||||
Stockholders' Equity | ||||||||
Common stock (authorized: | ||||||||
Additional paid-in capital | ||||||||
Retained earnings | ||||||||
Accumulated other comprehensive loss | ( | ( | ||||||
Union Carbide Corporation's stockholders' equity | ||||||||
Total Liabilities and Equity | $ | $ |
(In millions) For the years ended Dec 31, | 2021 | 2020 | 2019 | ||||||||
Operating Activities | |||||||||||
Net income attributable to Union Carbide Corporation | $ | $ | $ | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Provision (credit) for deferred income tax | ( | ||||||||||
Net (gain) loss on sales of property and investments | ( | ( | |||||||||
Restructuring and asset related charges - net | |||||||||||
Net periodic pension benefit cost (credit) | ( | ||||||||||
Pension contributions | ( | ( | ( | ||||||||
Net loss on early extinguishment of debt | |||||||||||
Other, net | |||||||||||
Changes in assets and liabilities: | |||||||||||
Accounts and notes receivable | ( | ( | |||||||||
Related company receivables | ( | ( | |||||||||
Inventories | ( | ||||||||||
Accounts payable | ( | ||||||||||
Related company payables | ( | ||||||||||
Asbestos-related payments | ( | ( | ( | ||||||||
Other assets and liabilities | ( | ( | |||||||||
Cash provided by operating activities | |||||||||||
Investing Activities | |||||||||||
Capital expenditures | ( | ( | ( | ||||||||
Change in noncurrent receivable from related company | ( | ( | |||||||||
Proceeds from sales of property | |||||||||||
Proceeds from sales of investments | |||||||||||
Cash provided by (used for) investing activities | ( | ( | |||||||||
Financing Activities | |||||||||||
Dividends paid to parent | ( | ( | ( | ||||||||
Changes in short-term notes payable | ( | ||||||||||
Payments on long-term debt | ( | ( | ( | ||||||||
Transaction financing, debt issuance and other costs | ( | ||||||||||
Cash used for financing activities | ( | ( | ( | ||||||||
Summary | |||||||||||
Increase (decrease) in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents at beginning of year | |||||||||||
Cash and cash equivalents at end of year | $ | $ | $ |
(In millions) For the years ended Dec 31, | 2021 | 2020 | 2019 | ||||||||
Common Stock | |||||||||||
Balance at beginning and end of period | $ | $ | $ | ||||||||
Additional Paid-in Capital | |||||||||||
Balance at beginning of period | |||||||||||
Capital contribution from The Dow Chemical Company | |||||||||||
Balance at end of period | |||||||||||
Retained Earnings | |||||||||||
Balance at beginning of period | |||||||||||
Net income attributable to Union Carbide Corporation | |||||||||||
Dividends declared | ( | ( | ( | ||||||||
Other | ( | ||||||||||
Balance at end of period | |||||||||||
Accumulated Other Comprehensive Loss, Net of Tax | |||||||||||
Balance at beginning of period | ( | ( | ( | ||||||||
Other comprehensive income (loss) | ( | ( | |||||||||
Balance at end of period | ( | ( | ( | ||||||||
Union Carbide Corporation's Stockholder's Equity | $ | $ | $ |
Union Carbide Corporation and Subsidiaries | ||
Notes to the Consolidated Financial Statements |
Note | Page | |||||||
1 | ||||||||
2 | ||||||||
3 | ||||||||
4 | ||||||||
5 | ||||||||
6 | ||||||||
7 | ||||||||
8 | ||||||||
9 | ||||||||
10 | ||||||||
11 | ||||||||
12 | ||||||||
13 | ||||||||
14 | ||||||||
15 | ||||||||
16 | ||||||||
17 | ||||||||
18 | ||||||||
19 | ||||||||
20 |
Sundry Income (Expense) - Net | |||||||||||
In millions | 2021 | 2020 | 2019 | ||||||||
TDCC administrative and overhead fees 1 | $ | ( | $ | ( | $ | ( | |||||
Net commission expense - related company 1 | ( | ( | ( | ||||||||
Non-operating pension and other postretirement benefit plan net credits (costs) 2 | ( | ( | |||||||||
Net gain (loss) on sales of property | ( | ||||||||||
Gain on divestiture of marine and terminal operations and assets 3 | |||||||||||
Gain on divestiture of rail infrastructure operations and assets 3 | |||||||||||
Loss on early extinguishment of debt 4 | ( | ||||||||||
Net loss on divestiture of acetone derivatives assets 3 | ( | ||||||||||
Other - net | ( | ( | ( | ||||||||
Total sundry income (expense) - net | $ | ( | $ | $ | ( |
Supplemental Cash Flow Information | 2021 | 2020 | 2019 | ||||||||
In millions | |||||||||||
Cash paid (refunded) during year for: | |||||||||||
Interest | $ | $ | $ | ||||||||
Income taxes | $ | ( | $ | $ |
Geographic Allocation of Income and Provision for Income Taxes | |||||||||||
In millions | 2021 | 2020 | 2019 | ||||||||
Income (loss) before income taxes | |||||||||||
Domestic | $ | $ | $ | ||||||||
Foreign | ( | ( | ( | ||||||||
Income before income taxes | $ | $ | $ | ||||||||
Current tax expense (benefit) | |||||||||||
Federal | $ | ( | $ | $ | |||||||
State and local | |||||||||||
Foreign | |||||||||||
Total current tax expense | $ | $ | $ | ||||||||
Deferred tax expense (benefit) | |||||||||||
Federal | $ | $ | $ | ( | |||||||
State and local | ( | ||||||||||
Foreign | ( | ||||||||||
Total deferred tax expense (benefit) | $ | $ | $ | ( | |||||||
Provision for income taxes | $ | $ | $ | ||||||||
Net income | $ | $ | $ |
Reconciliation to U.S. Statutory Rate | 2021 | 2020 | 2019 | ||||||||
Statutory U.S. federal income tax rate | % | % | % | ||||||||
Unrecognized tax benefits | ( | ( | |||||||||
Federal tax accrual adjustments | |||||||||||
Restoration of tax basis | ( | ||||||||||
State and local tax impact | |||||||||||
Other - net | ( | ( | |||||||||
Effective Tax Rate 1 | % | % | % |
Deferred Tax Balances at Dec 31 | 2021 | 2020 1 | ||||||||||||
In millions | Assets | Liabilities | Assets | Liabilities | ||||||||||
Property | $ | $ | $ | $ | ||||||||||
Tax loss and credit carryforwards | ||||||||||||||
Postretirement benefit obligations | ||||||||||||||
Other accruals and reserves | ||||||||||||||
Inventory | ||||||||||||||
Other - net | ||||||||||||||
Subtotal | $ | $ | $ | $ | ||||||||||
Valuation allowances 2 | ( | — | ( | — | ||||||||||
Total | $ | $ | $ | $ |
Operating Loss and Tax Credit Carryforwards at Dec 31 | 2021 | 2020 | ||||||
In millions | Assets | Assets | ||||||
Operating loss carryforwards | ||||||||
Expire within 5 years | $ | $ | ||||||
Expire after 5 years or indefinite expiration | ||||||||
Total operating loss carryforwards | $ | $ | ||||||
Tax credit carryforwards | ||||||||
Expire within 5 years | $ | $ | ||||||
Expire after 5 years or indefinite expiration | ||||||||
Total tax credit carryforwards | $ | $ | ||||||
Total tax loss and tax credit carryforwards | $ | $ |
Total Gross Unrecognized Tax Benefits | |||||||||||
In millions | 2021 | 2020 | 2019 | ||||||||
Total unrecognized tax benefits at Jan 1 | $ | $ | $ | ||||||||
Decreases related to positions taken on items from prior years | ( | ||||||||||
Increases related to positions taken on items from prior years | |||||||||||
Total unrecognized tax benefits at Dec 31 | $ | $ | $ | ||||||||
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate | $ | $ | $ | ||||||||
Total amount of interest and penalties (benefit) recognized in "Provision for income taxes" | $ | $ | ( | $ | ( | ||||||
Total accrual for interest and penalties recognized in the consolidated balance sheets | $ | $ | $ | ||||||||
Tax Years Subject to Examination by Major Tax Jurisdiction at Dec 31, 2021 | Earliest Open Year | ||||
Jurisdiction | |||||
United States: | |||||
Federal income tax | |||||
State and local income tax |
Inventories at Dec 31 | ||||||||
In millions | 2021 | 2020 | ||||||
Finished goods | $ | $ | ||||||
Work in process | ||||||||
Raw materials | ||||||||
Supplies | ||||||||
Total | $ | $ | ||||||
Adjustment of inventories to the LIFO basis | ( | ( | ||||||
Total inventories | $ | $ |
Property at Dec 31 | Estimated Useful Lives (Years) | ||||||||||
In millions | 2021 | 2020 | |||||||||
Land and land improvements | $ | $ | |||||||||
Buildings | |||||||||||
Machinery and equipment | |||||||||||
Other property | |||||||||||
Construction in progress | — | ||||||||||
Total property | $ | $ |
In millions | 2021 | 2020 | 2019 | ||||||||
Depreciation expense | $ | $ | $ | ||||||||
Capitalized interest | $ | $ | $ |
Investments in Related Companies at Dec 31 | Ownership Interest | Investment Balance | ||||||||||||
In millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Dow International Holdings Company | % | % | $ | $ | ||||||||||
Dow Quimica Mexicana S.A. de C.V. | % | % | ||||||||||||
Total investments in related companies | $ | $ |
Intangible Assets at Dec 31 | 2021 | 2020 | ||||||||||||||||||
In millions | Gross Carrying Amount | Accum Amort | Net | Gross Carrying Amount | Accum Amort | Net | ||||||||||||||
Intangible assets with finite lives: | ||||||||||||||||||||
Developed technology | $ | $ | ( | $ | $ | $ | ( | $ | ||||||||||||
Software | ( | ( | ||||||||||||||||||
Total intangible assets | $ | $ | ( | $ | $ | $ | ( | $ |
Amortization Expense | |||||||||||
In millions | 2021 | 2020 | 2019 | ||||||||
Software, included in "Cost of sales" | $ | $ | $ |
Estimated Amortization Expense for Next Five Years | |||||
In millions | |||||
2022 | $ | ||||
2023 | $ | ||||
2024 | $ | ||||
2025 | $ | ||||
2026 | $ |
Notes Payable at Dec 31 | ||||||||
In millions | 2021 | 2020 | ||||||
Notes payable to related companies | $ | $ | ||||||
Year-end average interest rates | % | % |
Long-Term Debt at Dec 31 | 2021 Average Rate | 2021 | 2020 Average Rate | 2020 | ||||||||||
In millions | ||||||||||||||
Promissory notes and debentures: | ||||||||||||||
Debentures due 2023 | % | $ | % | $ | ||||||||||
Debentures due 2025 | % | % | ||||||||||||
Debentures due 2025 | % | % | ||||||||||||
Debentures due 2096 | % | % | ||||||||||||
Finance lease obligations 1 | ||||||||||||||
Unamortized debt discount and issuance costs | ( | ( | ||||||||||||
Long-term debt due within one year | ( | ( | ||||||||||||
Total long-term debt | $ | $ |
Maturities of Long-Term Debt for Next Five Years at Dec 31, 2021 | |||||
In millions | |||||
2022 | $ | ||||
2023 | $ | ||||
2024 | $ | ||||
2025 | $ | ||||
2026 | $ |
Accrued Liability for Environmental Matters | ||||||||
In millions | 2021 | 2020 | ||||||
Balance at Jan 1 | $ | $ | ||||||
Accrual adjustment | ||||||||
Payments against reserve | ( | ( | ||||||
Foreign currency impact | ( | ( | ||||||
Balance at Dec 31 | $ | $ |
Lease Cost | 2021 | 2020 | 2019 | ||||||||
In millions | |||||||||||
Operating lease cost | $ | $ | $ | ||||||||
Short-term lease cost | |||||||||||
Variable lease cost | |||||||||||
Amortization of right-of-use assets - finance | |||||||||||
Total lease cost | $ | $ | $ |
Other Lease Information | 2021 | 2020 | 2019 | ||||||||
In millions | |||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows for operating leases | $ | $ | $ | ||||||||
Financing cash flows for finance leases | $ | $ | $ | ||||||||
Right-of-use assets obtained in exchange for lease obligations: | |||||||||||
Operating leases 1 | $ | $ | $ | ||||||||
Finance leases | $ | $ | $ |
Lease Position | Balance Sheet Classification | Dec 31, 2021 | Dec 31, 2020 | ||||||||
In millions | |||||||||||
Assets | |||||||||||
Operating lease assets | Operating lease right-of-use assets | $ | $ | ||||||||
Finance lease assets | Property | ||||||||||
Finance lease amortization | Accumulated depreciation | ( | ( | ||||||||
Total lease assets | $ | $ | |||||||||
Liabilities | |||||||||||
Current | |||||||||||
Operating | Operating lease liabilities - current | $ | $ | ||||||||
Finance | Long-term debt due within one year | ||||||||||
Noncurrent | |||||||||||
Operating | Operating lease liabilities - noncurrent | ||||||||||
Finance | Long-Term Debt | ||||||||||
Total lease liabilities | $ | $ |
Lease Term and Discount Rate | Dec 31, 2021 | Dec 31, 2020 | ||||||
Weighted-average remaining lease term | ||||||||
Operating leases | ||||||||
Finance leases | ||||||||
Weighted-average discount rate | ||||||||
Operating leases | % | % | ||||||
Finance leases | % | % |
Maturities of Lease Liabilities | Dec 31, 2021 | |||||||
In millions | Operating Leases | Finance Leases | ||||||
2022 | $ | $ | ||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 and thereafter | ||||||||
Total future undiscounted lease payments | $ | $ | ||||||
Less: Imputed interest | ||||||||
Total present value of lease liabilities | $ | $ |
Accumulated Other Comprehensive Loss | 2021 | 2020 | 2019 | ||||||||
In millions | |||||||||||
Cumulative Translation Adjustment | |||||||||||
Beginning balance | $ | ( | $ | ( | $ | ( | |||||
Unrealized gains (losses) on foreign currency translation | |||||||||||
(Gains) losses reclassified from AOCL to net income 1 | |||||||||||
Other comprehensive income (loss), net of tax | |||||||||||
Ending balance | $ | ( | $ | ( | $ | ( | |||||
Pension and Other Postretirement Benefits | |||||||||||
Beginning balance | $ | ( | $ | ( | $ | ( | |||||
Gains (losses) arising during the period | ( | ( | |||||||||
Tax (expense) benefit | ( | ||||||||||
Net gains (losses) arising during the period | ( | ( | |||||||||
Amortization of net loss and prior service credit reclassified from AOCL to net income 2 | |||||||||||
Tax expense (benefit) 3 | ( | ( | ( | ||||||||
Net loss and prior service credit reclassified from AOCL to net income | |||||||||||
Other comprehensive income (loss), net of tax | ( | ( | |||||||||
Ending balance | $ | ( | $ | ( | $ | ( | |||||
Total AOCL ending balance | $ | ( | $ | ( | $ | ( |
Pension Plan Assumptions | Benefit Obligations at Dec 31 | Net Periodic Benefit Costs for the Year Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | 2019 | |||||||||||||
Discount rate | % | % | % | % | % | ||||||||||||
Interest crediting rate for applicable benefits | % | % | % | % | % | ||||||||||||
Rate of compensation increase | % | % | % | % | % | ||||||||||||
Expected return on plan assets | % | % | % |
Other Postretirement Benefit Plan Assumptions | Benefit Obligations at Dec 31 | Net Periodic Benefit Costs for the Year Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | 2019 | |||||||||||||
Discount rate | % | % | % | % | % | ||||||||||||
Health care cost trend rate assumed for next year | % | % | % | % | % | ||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate health care cost trend rate) | % | % | % | % | % | ||||||||||||
Year that the rate reaches the ultimate health care cost trend rate |
Change in Projected Benefit Obligations, Plan Assets and Funded Status for All Plans | Defined Benefit Pension Plans | Other Postretirement Benefit Plan | ||||||||||||
In millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Change in projected benefit obligations: | ||||||||||||||
Benefit obligations at beginning of year | $ | $ | $ | $ | ||||||||||
Service cost | ||||||||||||||
Interest cost | ||||||||||||||
Actuarial changes in assumptions and experience | ( | ( | ||||||||||||
Benefits paid | ( | ( | ( | ( | ||||||||||
Curtailments/other 1 | ( | ( | ||||||||||||
Benefit obligations at end of year | $ | $ | $ | $ | ||||||||||
Change in plan assets: | ||||||||||||||
Fair value of plan assets at beginning of year | $ | $ | $ | $ | ||||||||||
Actual return on plan assets | ||||||||||||||
Employer contributions | ||||||||||||||
Asset transfers | ( | ( | ||||||||||||
Benefits paid | ( | ( | ||||||||||||
Other 2 | ( | |||||||||||||
Fair value of plan assets at end of year | $ | $ | $ | $ | ||||||||||
Funded status at end of year | $ | ( | $ | ( | $ | ( | $ | ( |
Net amounts recognized in the consolidated balance sheets at Dec 31: | ||||||||||||||
Accrued and other current liabilities | $ | ( | $ | ( | $ | ( | $ | ( | ||||||
Pension and other postretirement benefits - noncurrent | ( | ( | ( | ( | ||||||||||
Net amount recognized | $ | ( | $ | ( | $ | ( | $ | ( | ||||||
Pretax amounts recognized in accumulated other comprehensive loss at Dec 31: | ||||||||||||||
Net loss (gain) | $ | $ | $ | ( | $ | ( | ||||||||
Prior service credit | ( | ( | ||||||||||||
Pretax balance in accumulated other comprehensive loss at end of year | $ | $ | $ | ( | $ | ( |
Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets at Dec 31 | ||||||||
In millions | 2021 | 2020 | ||||||
Accumulated benefit obligations | $ | $ | ||||||
Fair value of plan assets | $ | $ |
Pension Plans with Projected Benefit Obligations in Excess of Plan Assets at Dec 31 | 2021 | 2020 | ||||||
In millions | ||||||||
Projected benefit obligations | $ | $ | ||||||
Fair value of plan assets | $ | $ |
Net Periodic Benefit Cost (Credit) for All Plans for the Year Ended Dec 31 | Defined Benefit Pension Plans | Other Postretirement Benefit Plan | ||||||||||||||||||
In millions | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | ||||||||||||||
Net Periodic Benefit Cost (Credit): | ||||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | ||||||||||||||
Interest cost | ||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | |||||||||||||||||
Amortization of prior service credit | ( | ( | ( | |||||||||||||||||
Amortization of net (gain) loss | ( | ( | ( | |||||||||||||||||
Curtailment gain1 | ( | |||||||||||||||||||
Net periodic benefit cost (credit) | $ | ( | $ | $ | $ | $ | $ | |||||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss: | ||||||||||||||||||||
Net (gain) loss | $ | ( | $ | $ | $ | ( | $ | $ | ||||||||||||
Amortization of prior service credit | ||||||||||||||||||||
Amortization of net gain (loss) | ( | ( | ( | |||||||||||||||||
Curtailment gain1 | ||||||||||||||||||||
Total recognized in other comprehensive (income) loss | $ | ( | $ | $ | $ | ( | $ | $ | ||||||||||||
Total recognized in net periodic benefit cost and other comprehensive (income) loss | $ | ( | $ | $ | $ | ( | $ | $ |
Estimated Future Benefit Payments at Dec 31, 2021 | Defined Benefit Pension Plans | Other Postretirement Benefit Plan | ||||||
In millions | ||||||||
2022 | $ | $ | ||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 through 2031 | ||||||||
Total | $ | $ |
Target Allocation for Plan Assets at Dec 31, 2021 | Target Allocation | ||||
Asset Category | |||||
Equity securities | % | ||||
Fixed income securities | |||||
Alternative investments | |||||
Other | |||||
Total | % |
Basis of Fair Value Measurements | Dec 31, 2021 | Dec 31, 2020 | ||||||||||||||||||||||||
In millions | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||
U.S. equity securities | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Non - U.S. equity securities | ||||||||||||||||||||||||||
Total equity securities | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||||||||
Debt - government-issued | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Debt - corporate-issued | ||||||||||||||||||||||||||
Debt - asset-backed | ||||||||||||||||||||||||||
Total fixed income securities | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Alternative investments: | ||||||||||||||||||||||||||
Private markets | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Derivatives - asset position | ||||||||||||||||||||||||||
Derivatives - liability position | ( | ( | ( | ( | ||||||||||||||||||||||
Total alternative investments | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Other investments | $ | $ | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||
Subtotal | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Investments measured at net asset value: | ||||||||||||||||||||||||||
Hedge funds | $ | $ | ||||||||||||||||||||||||
Private markets | ||||||||||||||||||||||||||
Real estate | ||||||||||||||||||||||||||
Total investments measured at net asset value | $ | $ | ||||||||||||||||||||||||
Items to reconcile to fair value of plan assets: | ||||||||||||||||||||||||||
Pension trust receivables 1 | $ | $ | ||||||||||||||||||||||||
Pension trust payables 2 | ( | ( | ||||||||||||||||||||||||
Total | $ | $ |
Fair Value Measurement of Level 3 Pension Plan Assets | Equity Securities | Alternative Investments | Total | ||||||||
In millions | |||||||||||
Balance at Jan 1, 2020 | $ | $ | $ | ||||||||
Actual return on plan assets: | |||||||||||
Relating to assets held at Dec 31, 2020 | |||||||||||
Relating to assets sold during 2020 | ( | ( | |||||||||
Purchases, sales and settlements | ( | ( | |||||||||
Balance at Dec 31, 2020 | $ | $ | $ | ||||||||
Actual return on plan assets: | |||||||||||
Relating to assets held at Dec 31, 2021 | ( | ( | |||||||||
Balance at Dec 31, 2021 | $ | $ | $ |
Fair Value of Financial Instruments | 2021 | 2020 | ||||||||||||||||||||||||
In millions | Cost | Gain | Loss | Fair Value | Cost | Gain | Loss | Fair Value | ||||||||||||||||||
Cash equivalents 1 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Long-term debt including debt due within one year | $ | ( | $ | $ | ( | $ | ( | $ | ( | $ | $ | ( | $ | ( |
Product and Services Agreements Transactions | 2021 | 2020 | 2019 | Income Statement | ||||||||||
In millions | Classification | |||||||||||||
TDCC Subsidiary: | ||||||||||||||
Commodity and raw materials purchases 1 | $ | $ | $ | Cost of sales | ||||||||||
Commission expense | $ | $ | $ | Sundry income (expense) - net | ||||||||||
TDCC: | ||||||||||||||
General administrative and overhead type services and service fee 2 | $ | $ | $ | Sundry income (expense) - net | ||||||||||
Activity-based costs | $ | $ | $ | Cost of sales |
Cash Dividends Declared and Paid | 2021 | 2020 | 2019 | ||||||||
In millions | |||||||||||
Cash dividends declared and paid | $ | $ | $ |
Geographic Region Information | United States | Asia Pacific | Rest of World | Total | ||||||||||
In millions | ||||||||||||||
2021 | ||||||||||||||
Sales to external customers 1 | $ | $ | $ | $ | ||||||||||
Long-lived assets | $ | $ | $ | $ | ||||||||||
2020 | ||||||||||||||
Sales to external customers 1 | $ | $ | $ | $ | ||||||||||
Long-lived assets | $ | $ | $ | $ | ||||||||||
2019 | ||||||||||||||
Sales to external customers 1 | $ | $ | $ | $ | ||||||||||
Long-lived assets | $ | $ | $ | $ |
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. CONTROLS AND PROCEDURES |
ITEM 9B. OTHER INFORMATION |
Union Carbide Corporation and Subsidiaries | ||
PART III |
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
ITEM 11. EXECUTIVE COMPENSATION |
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES |
Union Carbide Corporation and Subsidiaries | ||
PART IV |
ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES |
Exhibit No. | Description of Exhibit | ||||
2.1 | |||||
2.2 | |||||
3.1 | |||||
3.2 | |||||
4.1 | |||||
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 | |||||
10.1.1 | |||||
10.1.2 | |||||
10.1.3 | |||||
10.1.4 | |||||
10.1.5* |
Exhibit No. | Description of Exhibit | ||||
10.2 | |||||
10.2.1 | |||||
10.2.2 | |||||
10.3 | |||||
10.4 | |||||
10.5 | |||||
10.5.1 | |||||
10.5.2 | |||||
10.5.3 | |||||
10.5.4 | |||||
10.5.5 | |||||
10.5.6 | |||||
10.5.7 | |||||
10.5.8 | |||||
10.5.9 |
Exhibit No. | Description of Exhibit | ||||
10.5.10 | |||||
10.5.11 | |||||
10.5.12 | |||||
10.5.13 | |||||
10.5.14 | |||||
10.5.15 | |||||
10.5.16 | |||||
10.5.17 | |||||
10.5.18 | |||||
10.5.19* | |||||
10.6 | |||||
10.7 | |||||
10.7.1 | |||||
10.7.2 | |||||
10.7.3 |
Exhibit No. | Description of Exhibit | ||||
10.7.4 | |||||
10.7.5 | |||||
10.7.6 | |||||
10.7.7 | |||||
10.7.8 | |||||
10.9 | |||||
21 | Omitted pursuant to General Instruction I of Form 10-K. | ||||
23* | |||||
31.1* | |||||
31.2* | |||||
32.1* | |||||
32.2* | |||||
101.INS | The Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | ||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | ||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | ||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | ||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | ||||
104 | Cover Page Interactive Data File. The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
ITEM 16. FORM 10-K SUMMARY |
Union Carbide Corporation and Subsidiaries | ||
Trademark Listing |
Union Carbide Corporation and Subsidiaries | ||
Signatures |
UNION CARBIDE CORPORATION | ||
/s/ RONALD C. EDMONDS | ||
Ronald C. Edmonds, Controller and Vice President of Controllers and Tax The Dow Chemical Company (Authorized Representative of Union Carbide Corporation) |
/s/ RONALD C. EDMONDS | /s/ IGNACIO MOLINA | |||||||
Ronald C. Edmonds, Controller and Vice President of Controllers and Tax The Dow Chemical Company (Authorized Representative of Union Carbide Corporation) | Ignacio Molina, Director, Vice President, Treasurer and Chief Financial Officer (Principal Financial Officer) | |||||||
/s/ MARSHALL A. HEINBERG | /s/ FERNANDO SIGNORINI | |||||||
Marshall A. Heinberg, Director | Fernando Signorini, Director, President and Chief Executive Officer (Principal Executive Officer) |
Union Carbide Corporation and Subsidiaries |
Union Carbide Corporation and Subsidiaries | EXHIBIT 10.1.5 | |||||||
B-P Mix | Methanol | |||||||||||||
Benzene | Mixed Butanes | |||||||||||||
Butadiene | N-butane | |||||||||||||
Coal | Naphtha | |||||||||||||
Condensate | Natural Gas | |||||||||||||
Crude Butadiene | Nitrogen | |||||||||||||
Cumene | Oxygen | |||||||||||||
E-P Mix | Power | |||||||||||||
Ethane | Propane | |||||||||||||
Ethylene | Propylene | |||||||||||||
Fuel Gas | Pyrolysis Gasoline | |||||||||||||
Fuel Oil | Styrene | |||||||||||||
High Purity Water | Steam | |||||||||||||
Hydrogen | Toluene | |||||||||||||
Hydrocarbon Residual | Utilities | |||||||||||||
Instrument Air |
THE DOW CHEMICAL COMPANY | UNION CARBIDE CORPORATION | |||||||
By: /s/ RONALD C. EDMONDS | By: /s/ LEAH TRZCINSKI | |||||||
Name: Ronald C. Edmonds | Name: Leah Trzcinski | |||||||
Title: Controller and Vice President of Controllers and Tax | Title: Vice President, General Counsel and Secretary |
Union Carbide Corporation and Subsidiaries | EXHIBIT 10.5.19 | |||||||
Union Carbide Corporation and Subsidiaries | EXHIBIT 10.5.19 | |||||||
LENDER: | ||||||||
THE DOW CHEMICAL COMPANY | ||||||||
By: /s/ GARY MCGUIRE | ||||||||
Name: Gary McGuire | ||||||||
Title: Vice President and Treasurer | ||||||||
BORROWER: | ||||||||
UNION CARBIDE CORPORATION | ||||||||
By: /s/ IGNACIO MOLINA | ||||||||
Name: Ignacio Molina | ||||||||
Title: Chief Financial Officer, Vice President, and Treasurer |
Ankura Consulting Group, LLC's Consent | EXHIBIT 23 | |||||||
/s/ AMY BROCKMAN | ||
Amy Brockman | ||
Senior Managing Director | ||
Ankura Consulting Group, LLC | ||
February 4, 2022 |
Union Carbide Corporation and Subsidiaries | EXHIBIT 31.1 | |||||||
/s/ FERNANDO SIGNORINI | ||
Fernando Signorini | ||
President and Chief Executive Officer | ||
February 4, 2022 |
Union Carbide Corporation and Subsidiaries | EXHIBIT 31.2 | |||||||
/s/ IGNACIO MOLINA | ||
Ignacio Molina | ||
Vice President, Treasurer and | ||
Chief Financial Officer | ||
February 4, 2022 |
Union Carbide Corporation and Subsidiaries | EXHIBIT 32.1 | |||||||
/s/ FERNANDO SIGNORINI | ||||||||
Fernando Signorini | ||||||||
President and Chief Executive Officer | ||||||||
February 4, 2022 |
Union Carbide Corporation and Subsidiaries | EXHIBIT 32.2 | |||||||
/s/ IGNACIO MOLINA | ||||||||
Ignacio Molina | ||||||||
Vice President, Treasurer and | ||||||||
Chief Financial Officer | ||||||||
February 4, 2022 |
Consolidated Statements of Income - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Income Statement [Abstract] | |||
Net trade sales | $ 154 | $ 129 | $ 138 |
Net sales to related companies | 4,951 | 3,574 | 4,239 |
Total net sales | 5,105 | 3,703 | 4,377 |
Cost of sales | 4,463 | 3,245 | 3,500 |
Research and development expenses | 25 | 24 | 25 |
Selling, general and administrative expenses | 9 | 9 | 4 |
Restructuring Charges | 1 | 15 | 79 |
Integration and separation costs | 0 | 0 | 2 |
Total sundry income (expense) - net | (53) | 168 | (82) |
Interest Income, Other | 2 | 12 | 36 |
Interest expense and amortization of debt discount | 27 | 33 | 30 |
Income Before Income Taxes | 529 | 557 | 691 |
Provision (Credit) for income taxes | 154 | 130 | 64 |
Net Income Attributable to Union Carbide Corporation | $ 375 | $ 427 | $ 627 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Statement of Comprehensive Income [Abstract] | |||
Net income attributable to Union Carbide Corporation | $ 375 | $ 427 | $ 627 |
Other comprehensive income (loss), net of tax | |||
Cumulative translation adjustments | 2 | 1 | 1 |
Pension and other postretirement benefit plans | 217 | (106) | (105) |
Net other comprehensive income | 219 | (105) | (104) |
Comprehensive income attributable to Union Carbide Corporation | $ 594 | $ 322 | $ 523 |
Consolidated Balance Sheet Parentheticals - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Accounts Receivable, Allowance for Credit Loss, Current | $ 0 | $ 0 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 103 | $ 97 |
Common stock, shares authorized (in shares) | 1,000 | 1,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 935.51 | 935.51 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Notes) |
12 Months Ended |
---|---|
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 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. 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 ("TDCC"). In accordance with the accounting guidance for earnings per share, the presentation of earnings per share is not required in financial statements of wholly owned subsidiaries. TDCC conducts its worldwide operations through global businesses. The Corporation’s business activities comprise components of TDCC’s global businesses rather than stand-alone operations. Because there are no separate reportable business segments for UCC under the accounting guidance related to segment reporting 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. On April 1, 2019, DowDuPont Inc. (“DowDuPont” and effective June 3, 2019, n/k/a DuPont de Nemours, Inc.) completed the separation of its materials science business and Dow Inc. became the direct parent company of TDCC and its consolidated subsidiaries. The separation was contemplated by the merger of equals transaction effective August 31, 2017, under the Agreement and Plan of Merger, dated as of December 11, 2015, as amended on March 31, 2017. TDCC and E. I. du Pont de Nemours and Company and its consolidated subsidiaries ("Historical DuPont") each merged with subsidiaries of DowDuPont, and, as a result, TDCC and Historical DuPont became subsidiaries of DowDuPont (the “Merger”). Subsequent to the Merger, TDCC and Historical DuPont engaged in a series of internal reorganization and realignment steps to realign their businesses into three subgroups: agriculture, materials science and specialty products. Dow Inc. was formed as a wholly owned subsidiary of DowDuPont to serve as the holding company for the materials science business. UCC remains a wholly owned subsidiary of TDCC. See Note 3 for additional information. Intercompany transactions and balances are eliminated in consolidation. Transactions with the Corporation’s parent company, TDCC, and other subsidiaries of TDCC, have been reflected as related company transactions in the consolidated financial statements. See Note 19 for additional information. Certain reclassifications of prior period amounts have been made to conform to the current year presentation. 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. Significant Accounting Policies Asbestos-Related Matters Accruals for asbestos-related matters, including defense and processing costs, are recorded based on an analysis of claim and resolution activity, defense spending and pending and future claims. These accruals are assessed at each balance sheet date to determine if the asbestos-related liability remains appropriate. Accruals for asbestos-related matters are included in the consolidated balance sheets in "Asbestos-related liabilities - current" and "Asbestos-related liabilities - noncurrent." See Note 14 for additional information. Legal Costs The Corporation expenses legal costs as incurred, with the exception of defense and processing costs associated with asbestos-related matters. Foreign Currency Translation While the Corporation's consolidated subsidiaries are primarily based in the United States, the Corporation has small subsidiaries in Asia Pacific and the rest of the world. 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 translation gains and losses are reflected in income. Environmental Matters Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated based on current law and existing technologies. These accruals are adjusted periodically as assessment and remediation efforts progress or as additional technical or legal information becomes available. Accruals for environmental liabilities are included in the consolidated balance sheets in "Accrued and other current liabilities" and "Other noncurrent obligations" at undiscounted amounts. Accruals for related insurance or other third-party recoveries for environmental liabilities are recorded when it is probable that a recovery will be realized and are included in the consolidated balance sheets in "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 when available. When quoted market prices are not available for financial instruments, 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 net realizable value. 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 are carried at cost less accumulated depreciation. Property under finance lease agreements is carried at the present value of lease payments over the lease term less accumulated amortization. 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 (property, finite-lived intangible assets and right-of-use 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/amortization 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/amortization is recognized over the remaining useful life of the assets. Other Intangible Assets Finite-lived intangible assets, such as developed technology and software, are amortized over their estimated useful lives, generally on a straight-line basis for periods ranging primarily from three to twenty years. 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 TDCC subsidiaries located in the United States 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. Leases UCC determines whether a contract contains a lease at contract inception. A contract contains a lease if there is an identified asset and the Corporation has the right to control the asset. Operating lease right-of-use (“ROU”) assets represent UCC’s right to use an underlying asset for the lease term, and lease liabilities represent UCC’s obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. UCC uses the incremental borrowing rate in determining the present value of lease payments, unless the implicit rate is readily determinable. If lease terms include options to extend or terminate the lease, the ROU asset and lease liability are measured based on the reasonably certain decision. Leases with a term of 12 months or less at the commencement date are not recognized on the balance sheet and are expensed as incurred. UCC has lease agreements with lease and non-lease components, which are accounted for as a single lease component for nearly all classes of leased assets for which UCC is the lessee. Additionally, for certain equipment leases, the portfolio approach is applied to account for the operating lease ROU assets and lease liabilities. In the consolidated statements of income, lease expense for operating lease payments is recognized on a straight-line basis over the lease term. For finance leases, interest expense is recognized on the lease liability and the ROU asset is amortized over the lease term. Some leasing arrangements require variable payments that are dependent upon usage or output, or may vary for other reasons, such as insurance or tax payments. Variable lease payments are recognized as incurred and are not presented as part of the ROU asset or lease liability. See Note 15 for additional information. Revenue Substantially all of the Corporation's revenues are generated by sales to TDCC. Revenue for product sales to related companies is recognized when the related company obtains control of the product, which occurs either at the time that production is complete or shipped free on board ("FOB") from UCC's manufacturing facility, in accordance with the sales agreement between the Corporation and TDCC. The Corporation recognizes revenue for product sales to trade customers when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Corporation expects to receive in exchange for those goods or services. To determine revenue recognition, the Corporation performs the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. See Note 4 for additional information. Severance Costs Management routinely reviews its operations around the world in an effort to ensure competitiveness across its operations and geographic regions. 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 and it becomes probable that employees will be entitled to benefits at amounts that can be reasonably estimated. Integration and Separation Costs The Corporation classifies expenses related to the Merger and separation as integration and separation costs. Merger and separation related costs include: post-Merger integration expenses and costs incurred for the separation of TDCC’s agriculture business, materials science business and specialty products business. Integration and separation costs primarily consist of financial advisor, information technology, legal, accounting, consulting and other professional advisory fees associated with preparation and execution of these activities. Integration and separation costs related to the Merger and separation were completed as of December 31, 2020. 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 the same consolidated federal income tax group and consolidated income tax return as TDCC. The Corporation accounts for its income taxes following the formula in the TDCC-UCC Tax Sharing Agreement used to compute the amount due to TDCC or UCC for UCC's share of taxable income and tax attributes on the 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 TDCC based on a theoretical tax liability calculated on a separate return method. 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. 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.
|
RECENT ACCOUNTING GUIDANCE (Notes) |
12 Months Ended |
---|---|
Dec. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Standards Update and Change in Accounting Principle | RECENT ACCOUNTING GUIDANCE Recently Adopted Accounting Guidance In the first quarter of 2021, the Corporation adopted Accounting Standards Update 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." The amendments simplify the accounting for income taxes by removing certain exceptions to the general principles of Topic 740, "Income Taxes" and improve consistent application by clarifying and amending existing guidance. The adoption of this guidance did not have a material impact on the consolidated financial statements.
|
MERGER WITH HISTORICAL DUPONT AND BUSINESS SEPARATION (Notes) |
12 Months Ended |
---|---|
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Separation from DowDuPont | BUSINESS SEPARATION In the first quarter of 2019, in anticipation of DowDuPont's intended separation of its materials science business, UCC's assets and liabilities aligned with TDCC's specialty products business were transferred to TDCC as part of the internal reorganization steps to align TDCC's specialty products business to DowDuPont. In order to align entity ownership under TDCC, UCC distributed shares and assets to TDCC through dividends or asset distributions. As a result, in February 2019, UCC issued to TDCC a dividend of 1,067 shares of common stock of Dow International Holdings Company (“DIHC”), a cost method investment. Prior to the distribution, UCC had an 11.9 percent ownership interest in DIHC with the other 88.1 percent owned by TDCC and its other wholly owned subsidiaries. After the dividend, UCC’s investment in DIHC was reduced to 4.7 percent and resulted in a reduction in "Investments in related companies" of $401 million. UCC also transferred, as an asset distribution, the assets and liabilities aligned with TDCC's specialty products business for an additional dividend of $71 million to TDCC. The results of these transactions are reflected in “Investments in related companies” and “Retained earnings” in the consolidated balance sheets. See Note 19 for additional information. The Corporation evaluated the impact of the specialty products product line transfer and determined it did not represent a strategic shift that had a major effect on the Corporation’s operations and financial results and did not qualify as an individually significant component of the Corporation. As a result, this transfer was not reported as discontinued operations.
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REVENUE (Notes) |
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Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE Substantially all of the Corporation's revenue is generated by sales of products, primarily to TDCC. Products are sold to and purchased from TDCC at prices determined in accordance with the terms of an agreement between UCC and TDCC. The Corporation sells its products to TDCC to simplify the customer interface process. Substantially all product sale contracts are short-term in nature and have original expected durations of one year or less. Revenue from product sales is recognized when TDCC or the trade customer obtains control of the Corporation’s product, which occurs at a point in time, typically at the time production is complete or product is shipped FOB from UCC’s manufacturing facility for sales to TDCC, or upon shipment for sales to trade customers. The Corporation’s payment terms are on average 30 to 60 days after invoicing. All shipping and handling activities that occur after control transfers to the customer are considered fulfillment activities. Certain long-term contracts include a series of distinct goods that are delivered continuously to the customer through a pipeline. For these types of product sales, the Corporation invoices the customer in an amount that directly corresponds with the value to the customer of the Corporation’s performance to date. As a result, revenue is recognized based on the amount billable to the customer in accordance with the right to invoice practical expedient. The transaction price for product sales includes estimates for the most likely amount of consideration to which the Corporation will be entitled based on historical award experience and the Corporation’s best judgment at the time. Taxes collected and remitted to governmental authorities are excluded from the transaction price. For contracts with multiple performance obligations, the Corporation allocates the transaction price to each performance obligation on the basis of relative standalone selling price, which is based on the price charged to customers or estimated using the expected cost plus margin method. Revenue related to the initial licensing of patents and technology is recognized when the performance obligation is satisfied. Revenue related to sales-based royalties to which the Corporation expects to be entitled is estimated based on historical sales. The Corporation’s contract liabilities include payments received in advance of performance under long-term contracts for product sales and royalties with remaining contract terms that range up to 19 years. Amounts are recognized in revenue when the performance obligations for the contract are met. The Corporation has rights to additional consideration when product is delivered to the customer. The balance of contract liabilities was $35 million at December 31, 2021 ($40 million at December 31, 2020), of which $2 million ($5 million at December 31, 2020) was included in "Accrued and other current liabilities" and $33 million ($35 million at December 31, 2020) was included in "Other noncurrent obligations" in the consolidated balance sheets. The Corporation disaggregates its revenue from contracts with customers by type of customer (sales to related parties and sales to trade customers) as presented on the consolidated statements of income and believes this disaggregation best depicts the nature, amount, timing and uncertainty of its revenue and cash flows. Substantially all of the product sales are made to the Corporation's parent company, TDCC, and there are no unique economic factors that affect revenue recognition and cash flows associated with these product sales.
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DIVESTITURE (Notes) |
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Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | DIVESTITURES Divestiture of Rail Infrastructure Operations and Assets On July 2, 2020, TDCC entered into a definitive agreement to sell its rail infrastructure operations and assets at certain sites in the U.S. and Canada to an affiliate of Watco Companies, L.L.C. ("Watco affiliate") and the transaction closed September 30, 2020. As part of this transaction, UCC sold certain related operations and assets, including existing agreements to provide rail services to unrelated third parties, located at its sites in St. Charles, Louisiana ("St. Charles"), and Seadrift, Texas, with a net book value of $9 million, to the Watco affiliate. UCC retained ownership of the sites and underlying real property where the divested operations are located. UCC and the Watco affiliate entered into mutual long-term service agreements designed to ensure the continuation of rail services for UCC's existing operations at the impacted sites. The rail-service agreements include variable fees that have an initial term of 25 years. As part of the sale, UCC received proceeds of $95 million from TDCC, subject to customary post-closing adjustments, and recognized a pretax gain on the sale of $86 million, included in "Sundry income (expense) - net" in the consolidated statements of income. See Note 19 for more information on the cash management process. The Corporation evaluated the divestiture of the rail infrastructure operations and assets and determined it did not represent a strategic shift that had a major effect on the Corporation’s operations and financial results and did not qualify as an individually significant component of the Corporation. As a result, the divestiture is not reported as discontinued operations. Divestiture of Marine and Terminal Operations and Assets On September 14, 2020, TDCC entered into a definitive agreement to sell certain U.S. Gulf Coast marine and terminal operations and assets, including certain operations and assets located at UCC's site in St. Charles, to an affiliate of Royal Vopak ("Vopak affiliate"), and the transaction closed December 1, 2020. As part of this transaction, UCC sold certain related operations and assets located at its St. Charles site, including existing agreements to provide marine and terminal services to unrelated third parties, with a net book value of $41 million to the Vopak affiliate. UCC retained ownership of the site and the underlying real property where the divested operations are located. UCC and the Vopak affiliate entered into mutual long-term service agreements designed to ensure the continuation of marine and terminal services for UCC's existing St. Charles operations. The marine and terminal service agreements include fixed and variable fees that have initial terms of up to 25 years. Certain of these agreements contain leases, resulting in operating lease ROU assets and lease liabilities of $38 million. As part of the sale, UCC received proceeds of $226 million from TDCC, subject to customary post-closing adjustments, and recognized a pretax gain on the sale of $185 million, included in "Sundry income (expense) - net" in the consolidated statements of income. See Note 15 for additional information related to leases and Note 19 for additional information on the cash management process. The Corporation evaluated the divestiture of the marine and terminal operations and assets and determined it did not represent a strategic shift that had a major effect on the Corporation’s operations and financial results and did not qualify as an individually significant component of the Corporation. As a result, the divestiture is not reported as discontinued operations. Divestiture of Acetone Derivatives Assets On November 1, 2019, the Corporation completed the sale of its acetone derivatives product line to ALTIVIA Ketones & Additives, LLC for net proceeds of $17 million. The sale included acetone derivatives related inventory and production assets, as well as site infrastructure, land and utilities located in Institute, West Virginia. The sale also included railcars valued at $3 million, which were previously owned by TDCC and transferred to UCC in anticipation of the sale. The assets, with the exception of inventory and railcars, were written down to zero in the third quarter of 2019. In the fourth quarter of 2019, the Corporation recorded a $5 million pretax loss on the sale, included in "Sundry income (expense) - net" in the consolidated statements of income. The Corporation remains at the Institute, West Virginia, site as a tenant. See Notes 6, 18 and 19 for additional information. The Corporation evaluated the divestiture of the acetone derivatives product line and determined it did not represent a strategic shift that had a major effect on the Corporation’s operations and financial results and did not qualify as an individually significant component of the Corporation. As a result, this divestiture was not reported as discontinued operations.
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RESTRUCTURING AND ASSET RELATED CHARGES - NET (Notes) |
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Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Asset Related Charges - Net | RESTRUCTURING AND ASSET RELATED CHARGES - NET 2020 Restructuring Program On September 30, 2020, the Corporation's Board of Directors (the "Board") approved restructuring actions that were aligned to the structural cost improvement initiatives announced by Dow Inc. in response to the continued economic impact from the pandemic caused by coronavirus disease 2019 ("COVID-19"). The restructuring program was designed to reduce structural costs and enable the Corporation to further enhance competitiveness while the COVID-19 economic recovery gained traction. This program included workforce cost reductions and actions to rationalize the Corporation's manufacturing assets. These actions were substantially complete at the end of 2021. In 2020, the Corporation recorded pretax restructuring charges of $13 million, consisting of severance and related benefit costs of $9 million and asset write-downs and write-offs of $4 million. In 2021, the Corporation recorded a pretax restructuring charge of $1 million for additional severance and related benefit costs. The Corporation paid $9 million for severance and related benefit costs in 2021. At December 31, 2021, $1 million of the reserve balance was included in "Accrued and other current liabilities" ($8 million at December 31, 2020) and zero was included in "Other noncurrent obligations" ($1 million at December 31, 2020) in the consolidated balance sheets. DowDuPont Cost Synergy Program In September and November 2017, the Corporation approved restructuring actions that were aligned with DowDuPont's synergy targets. In connection with this program, the Corporation recorded restructuring charges for severance and related benefit costs of $2 million in 2020 and $4 million in 2019. The program was completed in 2020 with cumulative severance and related benefit cost payments of $19 million. The Corporation expects to incur additional costs in the future related to its restructuring activities. Future costs are expected to include demolition costs related to closed facilities and restructuring plan implementation costs; these costs will be recognized as incurred. The 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. 2019 Asset Related Charges On August 13, 2019, the Corporation entered into a definitive agreement to sell its acetone derivatives product line to ALTIVIA Ketones & Additives, LLC. As a result of this planned transaction, the Corporation recognized a pretax impairment charge of $75 million in the third quarter of 2019. See Notes 5 and 18 for additional information.
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SUPPLEMENTARY INFORMATION (Notes) |
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Supplementary Information [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplementary Information | SUPPLEMENTARY INFORMATION
1.See Note 19 for additional information. 2.See Note 17 for additional information. 3.See Note 5 for additional information. 4.See Note 13 for additional information. Supplemental Cash Flow Information The following table shows cash paid (refunded) for interest and income taxes for the years ended December 31, 2021, 2020 and 2019:
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INCOME TAXES (Notes) |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | INCOME TAXES
1.In 2021, the Corporation recognized additional charges related to state and local jurisdictions and an uncertain tax position related to litigation in a foreign jurisdiction which negatively impacted the effective tax rate. The tax rate for 2020 was unfavorably impacted by an accrual to return adjustment. The tax rate for 2019 was favorably impacted by the restoration of tax basis in assets, driven by a court judgment that did not involve the Corporation.
1.Certain prior year balances have been adjusted to conform with the current year presentation. 2.Primarily related to the realization of recorded tax benefits on state tax loss carryforwards from operations in the United States.
Undistributed earnings of foreign subsidiaries and related companies that are deemed to be permanently invested amounted to $7 million at December 31, 2021 ($7 million at December 31, 2020). The unrecognized deferred tax liability on those earnings is not material. The following table provides a reconciliation of the Corporation's unrecognized tax benefits:
During 2021, the Corporation recorded an uncertain tax position related to a foreign jurisdiction. The Corporation is included in TDCC's consolidated federal income tax group and was included in DowDuPont's consolidated tax return through March 31, 2019. 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, consistent with the TDCC-UCC Tax Sharing Agreement. The Corporation 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 in the next twelve months. The impact on the Corporation’s results of operations is not expected to be material.
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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INVENTORIES (Notes) |
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Inventories | INVENTORIES The following table provides a breakdown of inventories:
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PROPERTY (Notes) |
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Property | PROPERTY The following table provides a breakdown of property:
The following table provides information regarding depreciation expense and capitalized interest:
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INVESTMENTS IN RELATED COMPANIES (Notes) |
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Investments in and Advances to Affiliates, Schedule of Investments | INVESTMENTS IN RELATED COMPANIES The Corporation's ownership interests in related companies at December 31, 2021 and 2020 were as follows:
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INTANGIBLE ASSETS (Notes) |
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Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | INTANGIBLE ASSETS The following table provides information regarding the Corporation's intangible assets:
The following table provides information regarding amortization expense:
Total estimated amortization expense for the next five fiscal years, including amounts expected to be capitalized, is as follows:
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NOTES PAYABLE AND LONG-TERM DEBT (Notes) |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable and Long-term Debt | NOTES PAYABLE AND LONG-TERM DEBT
1.See Note 15 for additional information.
2020 Activity In 2020, TDCC concluded a cash tender offer that included $83 million aggregate principal amount of certain notes issued by the Corporation. As a result of the tender offer, the Corporation retired $46 million of 7.875 percent notes due 2023 and $37 million of 7.50 percent notes due 2025 and recognized a $19 million loss on the early extinguishment of debt, included in "Sundry income (expense) - net" in the consolidated statements of income. Letters of Credit The Corporation utilizes letters of credit to support commitments made in the ordinary course of business. While the terms and amounts of letters of credit change, UCC generally has approximately $5 million of outstanding letters of credit at any given time. 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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COMMITMENTS AND CONTINGENCIES (Notes) |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingent Liabilities | COMMITMENTS AND CONTINGENCIES 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, 2021, the Corporation had accrued obligations of $148 million for probable environmental remediation and restoration costs ($133 million at December 31, 2020), including $23 million for the remediation of Superfund sites ($18 million at December 31, 2020). 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. As new or additional information becomes available and/or certain spending trends become known, management will evaluate such information in determination of the current estimate of the environmental liability. In the third quarter of 2019, the Corporation recorded a pretax charge of $55 million, included in "Cost of sales" in the consolidated statements of income, related to environmental remediation matters at a number of current and historical locations. The charge primarily resulted from the culmination of long-standing negotiations and discussions with regulators and agencies, including technical studies supporting higher cost estimates for final or staged remediation plans, and the Corporation’s review of its closure strategies and obligations to monitor ongoing operations and maintenance activities. The following table summarizes the activity in the Corporation's accrued obligations for environmental matters for the years ended December 31, 2021 and 2020:
The amounts charged to income on a pretax basis related to environmental remediation totaled $47 million in 2021, $49 million in 2020 and $93 million in 2019. Capital expenditures for environmental protection were $8 million in 2021, $5 million in 2020 and $11 million in 2019. Litigation Asbestos-Related Matters Introduction 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 Asbestos-Related Liability Based on a study completed by Ankura Consulting Group, LLC ("Ankura") in January 2003, the Corporation increased its December 31, 2002, asbestos-related liability for pending and future claims for a 15-year period ending in 2017 to $2.2 billion, excluding future defense and processing costs. In subsequent years, the Corporation compared current asbestos claim and resolution activity to the results of the most recent Ankura study at each balance sheet date to determine whether the accrual continued to be appropriate. In 2016, Ankura completed a study to provide estimates for the undiscounted cost of disposing of pending and future claims against UCC and Amchem through the terminal year of 2049, including a reasonable forecast of future defense and processing costs. Based on the study and the Corporation’s internal review of asbestos claim and resolution activity, the Corporation determined estimating the liability through the terminal year of 2049 was more appropriate due to increased knowledge and data about the costs to resolve claims and diminished volatility in filing rates. The Corporation also determined that estimating and accruing a liability for future asbestos-related defense and processing costs was more appropriate as such costs represent expenditures related to legacy activities that do not contribute to current or future revenue generating activities of the Corporation and is also reflective of the manner in which the Corporation manages its asbestos-related exposure, including careful monitoring of the correlation between defense spending and resolution costs. As a result, in the fourth quarter of 2016, the Corporation recorded a $1,113 million increase in its asbestos-related liability for pending and future claims, including future defense and processing costs. Each October, the Corporation requests Ankura to review its historical asbestos claim and resolution activity through the third quarter of the current year, including asbestos-related defense and processing costs, to determine the appropriateness of updating the most recent study. In December 2019, Ankura stated that an update of its December 2018 study would not provide a more likely estimate of future events than the estimate reflected in the study and, therefore, the estimate in the study remained applicable. Based on the Corporation's internal review process and Ankura's response, the Corporation determined that no change to the accrual was required. In December 2020, Ankura completed a study of the Corporation's historical asbestos claim and resolution activity through September 30, 2020, including asbestos-related defense and processing costs, and provided estimates for the undiscounted cost of disposing of pending and future claims against UCC and Amchem through the terminal year of 2049. Based on the study and the Corporation's internal review process, it was determined that no adjustment to the accrual was required. At December 31, 2020, the asbestos-related liability for pending and future claims against UCC and Amchem, including future asbestos-related defense and processing costs, was $1,098 million, and approximately 22 percent of the recorded liability related to pending claims and approximately 78 percent related to future claims. In December 2021, Ankura stated that an update of its December 2020 study would not provide a more likely estimate of future events than the estimate reflected in the study and, therefore, the estimate in the study remained applicable. Based on the Corporation's internal review process and Ankura's response, the Corporation determined that no change to the accrual was required. At December 31, 2021, the asbestos-related liability for pending and future claims against UCC and Amchem, including future asbestos-related defense and processing costs, was $1,016 million and approximately 25 percent of the recorded liability related to pending claims and approximately 75 percent related to future claims. Summary The Corporation's management believes the amounts recorded for the asbestos-related liability, including defense and processing costs, reflect reasonable and probable estimates of the liability based on current, known facts. However, future events, such as the number of new claims to be filed and/or received each year, the average cost of defending and disposing of each such claim, as well as the numerous uncertainties surrounding asbestos litigation in the United States over a significant period of time, could cause the actual costs for the Corporation to be higher or lower than those projected or those recorded. Any such event could result in an increase or decrease in the recorded liability. Because of the uncertainties described above, the Corporation cannot estimate the full range of the cost of resolving pending and future asbestos-related claims facing UCC and Amchem. As a result, it is reasonably possible that an additional cost of disposing of asbestos-related claims, including future defense and processing 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. Other Litigation The Corporation is also 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 tax and regulatory disputes; health, safety and environmental matters; employment matters; patent infringement; contracts; and commercial litigation. 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 the possibility is remote that the aggregate of all such other claims and lawsuits will have a material adverse impact on the results of operations, cash flows and financial position of the Corporation. Purchase Commitments The Corporation has outstanding purchase commitments and various commitments for take-or-pay or throughput agreements. The Corporation was not aware of any purchase commitments that were negotiated as part of a financing arrangement for the facilities that will provide the contracted goods or services or for the costs related to those goods or services at December 31, 2021 and 2020. Asset Retirement Obligations The Corporation has recognized asset retirement obligations related to capping activities at landfill sites in the United States and for demolition and remediation activities at manufacturing sites in the United Arab Emirates and United States. The aggregate carrying amount of these asset retirement obligations was $15 million at December 31, 2021 ($17 million at December 31, 2020). The Corporation has also recognized conditional asset retirement obligations related to asbestos encapsulation as a result of planned demolition and remediation activities at manufacturing sites in the United States. The aggregate carrying amount of conditional asset retirement obligations was $2 million at December 31, 2021 ($2 million at December 31, 2020). The discount rate used to calculate the Corporation's asset retirement obligations and conditional asset retirement obligations was 1.13 percent at December 31, 2021 (0.42 percent at December 31, 2020). These obligations are included in the consolidated balance sheets as “Accrued and other current liabilities” and "Other noncurrent obligations." The Corporation has not recognized conditional asset retirement obligations for which a fair value cannot be reasonably estimated in its consolidated financial statements. It is the opinion of management that the possibility is remote that such conditional asset retirement obligations, when estimable, will have a material impact on the Corporation's consolidated financial statements based on current costs.
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ACCUMULATED OTHER COMPREHENSIVE LOSS (Notes) |
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Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in each component of AOCL for the years ended December 31, 2021, 2020 and 2019 were as follows:
1.Reclassified to "Sundry income (expense) - net." 2.These AOCL components are included in the computation of net periodic benefit cost of the Corporation's defined benefit pension and other postretirement benefit plans. See Note 17 for additional information. 3.Reclassified to "Provision for income taxes."
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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Notes) |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | 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. On March 4, 2021, TDCC announced changes to the design of its U.S. tax-qualified and non-qualified pension plans, including the plans of the Corporation (the “UCC Plans”). Effective December 31, 2023 (“Effective Date”), the Corporation will freeze the pensionable compensation and credited service amounts used to calculate pension benefits for employees who participate in the UCC Plans. As a result, at the Effective Date and subject to any bargaining obligations required by law, active participants of the UCC Plans will not accrue additional benefits for future service and compensation. In connection with these plan amendments, the Corporation remeasured the UCC Plans effective February 28, 2021, which resulted in a pretax actuarial gain of $87 million, reflected in other comprehensive income and inclusive of a $14 million reduction in the projected benefit obligation resulting from the plan amendments, and a pretax curtailment gain of $7 million, recognized in the first quarter of 2021. The Corporation's funding policy is to contribute to the plan when pension laws or economics either require or encourage funding. On March 4, 2021, the Corporation elected to contribute $545 million to its tax-qualified pension plan, funded by the Corporation's notes receivable from TDCC. In 2021, UCC contributed $549 million to its pension plans, including contributions to fund benefit payments for its non-qualified supplemental plan. UCC expects to contribute approximately $2 million to its pension plans in 2022. The weighted-average assumptions used to determine pension plan obligations and net periodic benefit costs are provided below:
Other Postretirement Benefit Plans The Corporation provides certain health care and life insurance benefits to retired U.S. employees and survivors. 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. The Corporation funds most of the cost of these health care and life insurance benefits as incurred. In 2021, 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 2022. The weighted-average assumptions used to determine other postretirement benefit plan obligations and net periodic benefit costs for the plan are provided in the following table:
Assumptions 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 Corporation uses the spot rate approach to determine the discount rate utilized to measure the service cost and interest cost components of net periodic pension and other postretirement benefit costs. Under the spot rate approach, the Corporation calculates service cost and interest cost by applying individual spot rates from the Willis Towers Watson U.S. RATE:Link 60-90 corporate yield curve (based on 60th to 90th percentile high-quality corporate bond yields) to the separate expected cash flow components of service cost and interest cost. The discount rates utilized to measure the pension and other postretirement obligations of the plans were based on the yield on high-quality corporate fixed income investments at the measurement date. Future expected actuarially determined cash flows for the plans are individually discounted at the spot rates under the Willis Towers Watson U.S. RATE:Link 60-90 corporate yield curve (based on 60th to 90th percentile high-quality corporate bond yields) to arrive at the plan’s obligations as of the measurement date. The Corporation's mortality assumption used for the U.S. plans is a benefit-weighted version of the Society of Actuaries' RP-2014 base table with future rates of mortality improvement based on a modified version of the assumptions used in the Social Security Administration's 2021 trustees report. Summarized information on the Corporation's pension and other postretirement benefit plans is as follows:
1.The 2021 impact relates primarily to the freeze of pensionable compensation and credited service amounts for employees that participate in the UCC Plans. The 2020 impact relates primarily to the transfer of benefit obligations through the purchase of annuity contracts from an insurance company. 2.The 2020 impact relates to the purchase of annuity contracts associated with the transfer of benefit obligations to an insurance company. A significant component of the overall decrease in the Corporation's benefit obligation for the year ended December 31, 2021 was due to the change in weighted-average discount rates, which increased from 2.53 percent at December 31, 2020 to 2.94 percent at December 31, 2021. A significant component of the overall increase in the Corporation's benefit obligation for the year ended December 31, 2020 was due to the change in weighted-average discount rates, which decreased from 3.29 percent at December 31, 2019 to 2.53 percent at December 31, 2020. The accumulated benefit obligation for all defined benefit pension plans was $3.9 billion at December 31, 2021 and $4.2 billion at December 31, 2020.
1.The 2021 impact relates primarily to the freeze of pensionable compensation and credited service amounts for employees that participate in the UCC Plans. Net periodic benefit cost (credit), other than the service cost component, is included in "Sundry income (expense) - net" in the consolidated statements of income. See Note 7 for additional information. Estimated Future Benefit Payments The estimated future benefit payments, reflecting expected future service, as appropriate, are presented in the following table:
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. Plan assets totaled $3.6 billion at December 31, 2021 and $3.1 billion at December 31, 2020 and included no directly held common stock of Dow Inc. The Corporation's investment strategy for plan assets is to manage the assets in relation to the liability in order to pay retirement benefits to plan participants over the life of the plans. This is accomplished by identifying and managing the exposure to various market risks, diversifying investments across various asset classes and earning an acceptable long-term rate of return consistent with an acceptable amount of risk, while considering the liquidity needs of the 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 the risk within the portfolios and the surplus risk of the plan. 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 and absolute return strategies. Other significant investment types include various insurance contracts and interest rate, equity, commodity and foreign exchange derivative investments and hedges. The Corporation mitigates the credit risk of investments by establishing guidelines with investment managers that limit investment in any single issue or issuer to an amount that is not material to the portfolio being managed. These guidelines are monitored for compliance both by the Corporation and the external managers. Credit risk related to derivative activity is mitigated by utilizing multiple counterparties, collateral support agreements, and centralized clearing where appropriate. A 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. The weighted-average target allocation for plan assets of the Corporation's pension plan is summarized as follows:
Fair value calculations may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Corporation believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. For pension plan assets classified as Level 1 measurements (measured using quoted prices in active markets), total fair value is either the price of the most recent trade at the time of the market close or the official close price, as defined by the exchange on which the asset is most actively traded on the last trading day of the period, multiplied by the number of units held without consideration of transaction costs. For pension plan assets classified as Level 2 measurements, where the security is frequently traded in less active markets, fair value is based on the closing price at the end of the period; where the security is less frequently traded, fair value is based on the price a dealer would pay for the security or similar securities, adjusted for any terms specific to that asset or liability. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance and quality checks. For derivative assets and liabilities, standard industry models are used to calculate the fair value of the various financial instruments based on significant observable market inputs such as foreign exchange rates, commodity prices, swap rates, interest rates, and implied volatilities obtained from various market sources. For 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 pension plan assets classified as Level 3 measurements, total fair value is based on significant unobservable inputs including assumptions where there is little, if any, market activity for the investment. Certain pension plan assets are held in funds where fair value is based on an estimated net asset value per share (or its equivalent) as of the most recently available fund financial statements which are received 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 to arrive at an estimated net asset value per share at the measurement date. These funds are not classified within the fair value hierarchy. The following table summarizes the bases used to measure the Corporation’s pension plan assets at fair value for the years ended December 31, 2021 and 2020:
1.Primarily receivables for investment securities sold. 2.Primarily payables for investment securities purchased. The following table summarizes the changes in fair value of Level 3 pension plan assets for the years ended December 31, 2021 and 2020:
Defined Contribution Plans In addition to the qualified defined benefit pension plan, U.S. employees may participate in defined contribution plans by contributing a portion of their compensation, which is partially matched by the Corporation. Expense recognized for all defined contribution plans was $8 million in 2021, $7 million in 2020 and $9 million in 2019. On March 4, 2021, TDCC announced changes to its U.S. tax-qualified and non-qualified defined contribution plans. Effective January 1, 2022, contributions to U.S. tax-qualified and non-qualified defined contribution plans will be harmonized across the U.S. eligible employee population of TDCC and its consolidated subsidiaries, including the plans of the Corporation. The new matching contribution will allow all eligible U.S. employees to receive matching contributions of up to 5 percent of their eligible compensation. In addition, beginning on January 1, 2024, all eligible U.S. employees will receive an automatic non-elective contribution of 4 percent of eligible compensation to their respective defined contribution plans.
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LEASES (Notes) |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee, Operating And Finance Leases | LEASES Operating lease ROU assets are included in "Operating lease right-of-use assets" and finance lease ROU assets are included in "Net property" in the consolidated balance sheets. With respect to lease liabilities, operating lease liabilities are included in "Operating lease liabilities - current" and "Operating lease liabilities - noncurrent," and finance lease liabilities are included in "Long-term debt due within one year" and "Long-Term Debt" in the consolidated balance sheets. The Corporation routinely leases product and utility production facilities, sales and administrative offices, warehouses and tanks for product storage, motor vehicles, railcars, computers, office machines and equipment. Some leases contain renewal provisions, purchase options and escalation clauses. The terms for these leased assets vary depending on the lease agreement. These leased assets have remaining lease terms of up to 19 years. The Corporation's lease agreements do not contain any material residual value guarantees or restrictive covenants. The components of lease cost for operating and finance leases for the years ended December 31, 2021, 2020 and 2019 were as follows:
The following table provides supplemental cash flow and other information related to leases:
1.Includes $99 million for the year ended December 31, 2019 related to the adoption of ASU 2016-02, "Leases (Topic 842)" and the associated ASUs. The following table summarizes the lease-related assets and liabilities recorded in the consolidated balance sheets at December 31, 2021 and 2020:
The weighted-average remaining lease term and discount rate for leases recorded in the consolidated balance sheets at December 31, 2021 and 2020 are provided below:
The following table provides the maturities of lease liabilities at December 31, 2021:
At December 31, 2021, the Corporation had additional leases of approximately $1 million for equipment which have not yet commenced. These leases are expected to commence in 2022, with lease terms of 2 years.
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FAIR VALUE MEASUREMENTS (Notes) |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Corporation's financial instruments are classified as Level 2 measurements. For assets and liabilities classified as Level 2 measurements, where the security is frequently traded in less active markets, fair value is based on the closing price at the end of the period; where the security is less frequently traded, fair value is based on the price a dealer would pay for the security or similar securities, adjusted for any terms specific to that asset or liability, or by using observable market data points of similar, more liquid securities to imply the price. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance and quality checks. 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 in the years ended December 31, 2021 and 2020. The following table summarizes the fair value of the Corporation's financial instruments at December 31, 2021 and 2020:
1.Money market fund is included in "Cash and cash equivalents" in the consolidated balance sheets and held at amortized cost, which approximates fair value. Cost approximates fair value for all other financial instruments. Fair Value Measurements on a Nonrecurring Basis In 2019, the Corporation recognized an impairment charge of $75 million resulting from the planned divestiture of its acetone derivatives product line to ALTIVIA Ketones & Additives, LLC. The transaction included the Corporation's acetone derivatives related inventory and production assets located in Institute, West Virginia, in addition to the site infrastructure, land and utilities and certain railcars previously owned by TDCC. The assets, classified as Level 3 measurements and valued using unobservable inputs, were written down to zero in 2019, except for inventory and railcars. The impairment charge was included in "Restructuring and asset related charges - net" in the consolidated statements of income. See Note 6 for additional information.
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RELATED PARTY TRANSACTIONS (Notes) |
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Related Party Transactions Disclosure [Text Block] | RELATED PARTY TRANSACTIONS Product and Services Agreements The Corporation sells its products to TDCC to simplify the customer interface process. Products are sold to and purchased from TDCC at prices determined in accordance with the terms of an agreement between UCC and TDCC. After each quarter, the Corporation and TDCC 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 TDCC subsidiary and pays a commission to that TDCC subsidiary based on the volume and type of commodities and raw materials purchased. The Corporation also has a master services agreement with TDCC, whereby TDCC 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 TDCC, general administrative and overhead type services that TDCC 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. The following table summarizes UCC’s transactions with TDCC and a TDCC subsidiary related to product and services agreements for the years ended December 31, 2021, 2020 and 2019:
1.Period-end balances on hand are included in inventory. The increase in purchase costs in 2021 was primarily due to higher feedstock and energy costs, which includes the impact of Winter Storm Uri in the first quarter of 2021. Amounts reported for 2019 are approximate, as reported in prior years. 2.The increase in services and fees resulted from TDCC's periodic review of the actual cost of services provided to UCC in accordance with related agreements. Management believes the method used for determining expenses charged by TDCC is reasonable. TDCC 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 TDCC’s risk management philosophy, are provided as a service to UCC. The Corporation incurred asset losses and other costs and experienced lost sales and margins due to severe weather events that impacted the U.S. Gulf Coast in 2021. These costs and losses are covered, in part, by an insurance program purchased by TDCC from its insurance affiliate. At December 31, 2021, the Corporation has recorded an insurance receivable of $114 million from TDCC for the Corporation’s share of covered losses and incurred costs, included in “Accounts receivable - Related companies” in the consolidated balance sheets. Additional insurance recoveries may be recognized when the insured amounts are agreed upon by other insurers. Tax Sharing Agreement In accordance with the Tax Sharing Agreement between the Corporation and TDCC, the Corporation makes payments to TDCC to cover the Corporation's estimated federal tax liability; payments were $42 million in 2021, $100 million in 2020 and $184 million in 2019. Cash Management As part of TDCC’s cash management process, UCC is a party to revolving loans with TDCC that have interest rates based on LIBOR (London Interbank Offered Rate) with varying maturities. At December 31, 2021, the Corporation had a note receivable of $988 million ($1.7 billion at December 31, 2020) from TDCC 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 TDCC that allows the Corporation to borrow or obtain credit enhancements up to an aggregate of $1 billion that matures on December 30, 2022. TDCC 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, 2021, $935 million was available under the revolving credit agreement ($937 million at December 31, 2020). The cash collateral was reported as "Noncurrent receivables from related companies" in the consolidated balance sheets. Dividends and Other Equity Transactions On a quarterly basis, the Corporation's Board reviews and determines if there will be a dividend distribution to its parent company and sole shareholder, TDCC. The Board takes into consideration the level of earnings and cash flows, among other factors, in determining the amount of the dividend distribution. The following table summarizes cash dividends declared and paid to TDCC for the years ended 2021, 2020 and 2019:
In the first quarter of 2019, in anticipation of the business separation activities to align TDCC's specialty products business with DowDuPont, UCC issued a stock dividend to TDCC for 63.4 percent of its ownership in DIHC, a cost method investment, which totaled $401 million. UCC also distributed assets and liabilities aligned with TDCC's specialty products business for an additional dividend to TDCC of $71 million. See Note 3 for additional information. In the fourth quarter of 2019, in anticipation of the Corporation's sale of its acetone derivatives product line to ALTIVIA Ketones & Additives, LLC, TDCC transferred railcars to UCC valued at $3 million as a capital contribution, which is included in "Additional paid in capital" in the consolidated balance sheets. See Notes 5, 6 and 18 for additional information.
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BUSINESS AND GEOGRAPHIC AREAS (Notes) |
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Business and Geographic Regions | BUSINESS AND GEOGRAPHIC REGIONS TDCC conducts its worldwide operations through principal product groups, and the Corporation's business activities comprise components of TDCC's principal product groups rather than stand-alone operations. The Corporation sells substantially all of its products to TDCC in order to simplify the customer interface process, at prices determined in accordance with the terms of an agreement between UCC and TDCC. Because there are no separate 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 regions based on customer location; long-lived assets are attributed to geographic regions based on asset location. Sales to external customers and long-lived assets by geographic region were as follows:
1.Of total sales to external customers, sales in Malaysia were approximately 2 percent in 2021, 18 percent in 2020 and 17 percent in 2019, and are included in Asia Pacific.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | 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. 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 ("TDCC"). In accordance with the accounting guidance for earnings per share, the presentation of earnings per share is not required in financial statements of wholly owned subsidiaries. TDCC conducts its worldwide operations through global businesses. The Corporation’s business activities comprise components of TDCC’s global businesses rather than stand-alone operations. Because there are no separate reportable business segments for UCC under the accounting guidance related to segment reporting 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. On April 1, 2019, DowDuPont Inc. (“DowDuPont” and effective June 3, 2019, n/k/a DuPont de Nemours, Inc.) completed the separation of its materials science business and Dow Inc. became the direct parent company of TDCC and its consolidated subsidiaries. The separation was contemplated by the merger of equals transaction effective August 31, 2017, under the Agreement and Plan of Merger, dated as of December 11, 2015, as amended on March 31, 2017. TDCC and E. I. du Pont de Nemours and Company and its consolidated subsidiaries ("Historical DuPont") each merged with subsidiaries of DowDuPont, and, as a result, TDCC and Historical DuPont became subsidiaries of DowDuPont (the “Merger”). Subsequent to the Merger, TDCC and Historical DuPont engaged in a series of internal reorganization and realignment steps to realign their businesses into three subgroups: agriculture, materials science and specialty products. Dow Inc. was formed as a wholly owned subsidiary of DowDuPont to serve as the holding company for the materials science business. UCC remains a wholly owned subsidiary of TDCC. See Note 3 for additional information. Intercompany transactions and balances are eliminated in consolidation. Transactions with the Corporation’s parent company, TDCC, and other subsidiaries of TDCC, have been reflected as related company transactions in the consolidated financial statements. See Note 19 for additional information. Certain reclassifications of prior period amounts have been made to conform to the current year presentation.
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Use of Estimates in Financial Statement Preparation | 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.
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Asbestos-Related Matters | Asbestos-Related Matters Accruals for asbestos-related matters, including defense and processing costs, are recorded based on an analysis of claim and resolution activity, defense spending and pending and future claims. These accruals are assessed at each balance sheet date to determine if the asbestos-related liability remains appropriate. Accruals for asbestos-related matters are included in the consolidated balance sheets in "Asbestos-related liabilities - current" and "Asbestos-related liabilities - noncurrent." See Note 14 for additional information.
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Legal Costs | Legal Costs The Corporation expenses legal costs as incurred, with the exception of defense and processing costs associated with asbestos-related matters.
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Foreign Currency Translation | Foreign Currency Translation While the Corporation's consolidated subsidiaries are primarily based in the United States, the Corporation has small subsidiaries in Asia Pacific and the rest of the world. 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 translation gains and losses are reflected in income.
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Environmental Matters | 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 in "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.
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Cash and Cash Equivalents | 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.
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Financial Instruments | Financial Instruments The Corporation calculates the fair value of financial instruments using quoted market prices when available. When quoted market prices are not available for financial instruments, the Corporation uses standard pricing models with market-based inputs that take into account the present value of estimated future cash flows.
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Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. 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.
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Property | Property Land, buildings and equipment are carried at cost less accumulated depreciation. Property under finance lease agreements is carried at the present value of lease payments over the lease term less accumulated amortization. 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.
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Impairment and Disposal of Long-Lived Assets | Impairment and Disposal of Long-Lived Assets The Corporation evaluates long-lived assets (property, finite-lived intangible assets and right-of-use 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/amortization 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/amortization is recognized over the remaining useful life of the assets.
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Other Intangible Assets | Other Intangible Assets Finite-lived intangible assets, such as developed technology and software, are amortized over their estimated useful lives, generally on a straight-line basis for periods ranging primarily from three to twenty years.
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Asset Retirement Obligation | 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.
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Investments in Related Companies | Investments in Related Companies Investments in related companies consist of the Corporation's ownership interests in TDCC subsidiaries located in the United States 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.
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Lessee, Leases [Policy Text Block] | Leases UCC determines whether a contract contains a lease at contract inception. A contract contains a lease if there is an identified asset and the Corporation has the right to control the asset. Operating lease right-of-use (“ROU”) assets represent UCC’s right to use an underlying asset for the lease term, and lease liabilities represent UCC’s obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. UCC uses the incremental borrowing rate in determining the present value of lease payments, unless the implicit rate is readily determinable. If lease terms include options to extend or terminate the lease, the ROU asset and lease liability are measured based on the reasonably certain decision. Leases with a term of 12 months or less at the commencement date are not recognized on the balance sheet and are expensed as incurred. UCC has lease agreements with lease and non-lease components, which are accounted for as a single lease component for nearly all classes of leased assets for which UCC is the lessee. Additionally, for certain equipment leases, the portfolio approach is applied to account for the operating lease ROU assets and lease liabilities. In the consolidated statements of income, lease expense for operating lease payments is recognized on a straight-line basis over the lease term. For finance leases, interest expense is recognized on the lease liability and the ROU asset is amortized over the lease term. Some leasing arrangements require variable payments that are dependent upon usage or output, or may vary for other reasons, such as insurance or tax payments. Variable lease payments are recognized as incurred and are not presented as part of the ROU asset or lease liability. See Note 15 for additional information.
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Revenue | Revenue Substantially all of the Corporation's revenues are generated by sales to TDCC. Revenue for product sales to related companies is recognized when the related company obtains control of the product, which occurs either at the time that production is complete or shipped free on board ("FOB") from UCC's manufacturing facility, in accordance with the sales agreement between the Corporation and TDCC. The Corporation recognizes revenue for product sales to trade customers when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Corporation expects to receive in exchange for those goods or services. To determine revenue recognition, the Corporation performs the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. See Note 4 for additional information.
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Severance Costs | Severance Costs Management routinely reviews its operations around the world in an effort to ensure competitiveness across its operations and geographic regions. 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 and it becomes probable that employees will be entitled to benefits at amounts that can be reasonably estimated.
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Integration and Separation Costs | Integration and Separation Costs The Corporation classifies expenses related to the Merger and separation as integration and separation costs. Merger and separation related costs include: post-Merger integration expenses and costs incurred for the separation of TDCC’s agriculture business, materials science business and specialty products business. Integration and separation costs primarily consist of financial advisor, information technology, legal, accounting, consulting and other professional advisory fees associated with preparation and execution of these activities. Integration and separation costs related to the Merger and separation were completed as of December 31, 2020.
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Income Taxes | 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 the same consolidated federal income tax group and consolidated income tax return as TDCC. The Corporation accounts for its income taxes following the formula in the TDCC-UCC Tax Sharing Agreement used to compute the amount due to TDCC or UCC for UCC's share of taxable income and tax attributes on the 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 TDCC based on a theoretical tax liability calculated on a separate return method. 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. 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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SUPPLEMENTARY INFORMATION (Tables) |
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Supplementary Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sundry Income, Net |
1.See Note 19 for additional information. 2.See Note 17 for additional information. 3.See Note 5 for additional information. 4.See Note 13 for additional information.
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Schedule of Cash Flow, Supplemental Disclosures | The following table shows cash paid (refunded) for interest and income taxes for the years ended December 31, 2021, 2020 and 2019:
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INCOME TAXES (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of geographic allocation of income |
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Schedule of Effective Income Tax Rate Reconciliation |
1.In 2021, the Corporation recognized additional charges related to state and local jurisdictions and an uncertain tax position related to litigation in a foreign jurisdiction which negatively impacted the effective tax rate. The tax rate for 2020 was unfavorably impacted by an accrual to return adjustment. The tax rate for 2019 was favorably impacted by the restoration of tax basis in assets, driven by a court judgment that did not involve the Corporation.
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Schedule of Deferred Tax Assets and Liabilities |
1.Certain prior year balances have been adjusted to conform with the current year presentation. 2.Primarily related to the realization of recorded tax benefits on state tax loss carryforwards from operations in the United States.
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Summary of Operating Loss Carryforwards |
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Schedule of Total Gross Unrecognized Tax Benefits | The following table provides a reconciliation of the Corporation's unrecognized tax benefits:
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Schedule of Tax Years Subject to Examination by Major Tax Jurisdiction |
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INVENTORIES (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, Current | The following table provides a breakdown of inventories:
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PROPERTY (Tables) |
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Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of property | The following table provides a breakdown of property:
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Schedule of other items related to property | The following table provides information regarding depreciation expense and capitalized interest:
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INVESTMENTS IN RELATED COMPANIES (Tables) |
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Investments in Related Companies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Securities without Readily Determinable Fair Value | The Corporation's ownership interests in related companies at December 31, 2021 and 2020 were as follows:
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INTANGIBLE ASSETS (Tables) |
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Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets and Goodwill | The following table provides information regarding the Corporation's intangible assets:
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Schedule Of Finite Lived Intangible Assets Amortization Expense Table | The following table provides information regarding amortization expense:
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Schedule of Expected Amortization Expense | Total estimated amortization expense for the next five fiscal years, including amounts expected to be capitalized, is as follows:
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NOTES PAYABLE AND LONG-TERM DEBT (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Short-term Debt |
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Schedule of Long-term Debt Instruments |
1.See Note 15 for additional information.
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Schedule of Maturities of Long-term Debt |
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COMMITMENTS AND CONTINGENCIES (Tables) |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Environmental Loss Contingency | The following table summarizes the activity in the Corporation's accrued obligations for environmental matters for the years ended December 31, 2021 and 2020:
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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Loss | The changes in each component of AOCL for the years ended December 31, 2021, 2020 and 2019 were as follows:
1.Reclassified to "Sundry income (expense) - net." 2.These AOCL components are included in the computation of net periodic benefit cost of the Corporation's defined benefit pension and other postretirement benefit plans. See Note 17 for additional information. 3.Reclassified to "Provision for income taxes."
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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables) |
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | Summarized information on the Corporation's pension and other postretirement benefit plans is as follows:
1.The 2021 impact relates primarily to the freeze of pensionable compensation and credited service amounts for employees that participate in the UCC Plans. The 2020 impact relates primarily to the transfer of benefit obligations through the purchase of annuity contracts from an insurance company. 2.The 2020 impact relates to the purchase of annuity contracts associated with the transfer of benefit obligations to an insurance company.
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Schedule of Net Benefit Costs |
1.The 2021 impact relates primarily to the freeze of pensionable compensation and credited service amounts for employees that participate in the UCC Plans.
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Schedule of Expected Benefit Payments | The estimated future benefit payments, reflecting expected future service, as appropriate, are presented in the following table:
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Schedule of Allocation of Plan Assets | The weighted-average target allocation for plan assets of the Corporation's pension plan is summarized as follows:
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Schedule of Defined Benefit Plans Disclosures | The following table summarizes the bases used to measure the Corporation’s pension plan assets at fair value for the years ended December 31, 2021 and 2020:
1.Primarily receivables for investment securities sold. 2.Primarily payables for investment securities purchased.
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Pension Plan [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assumptions Used | The weighted-average assumptions used to determine pension plan obligations and net periodic benefit costs are provided below:
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Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets |
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Schedule of Projected Benefit Obligations in Excess of Fair Value of Plan Assets |
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Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | The following table summarizes the changes in fair value of Level 3 pension plan assets for the years ended December 31, 2021 and 2020:
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Other Postretirement Benefits Plan [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assumptions Used | The weighted-average assumptions used to determine other postretirement benefit plan obligations and net periodic benefit costs for the plan are provided in the following table:
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LEASES (Tables) |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost [Table Text Block] | The components of lease cost for operating and finance leases for the years ended December 31, 2021, 2020 and 2019 were as follows:
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Schedule of Supplemental Cash Flow Information Related to Leases [Table Text Block] | The following table provides supplemental cash flow and other information related to leases:
1.Includes $99 million for the year ended December 31, 2019 related to the adoption of ASU 2016-02, "Leases (Topic 842)" and the associated ASUs.
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Schedule of Lease Assets and Liabilities [Table Text Block] | The following table summarizes the lease-related assets and liabilities recorded in the consolidated balance sheets at December 31, 2021 and 2020:
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Lease Terms and Discount Rates [Table Text Block] | The weighted-average remaining lease term and discount rate for leases recorded in the consolidated balance sheets at December 31, 2021 and 2020 are provided below:
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Maturities of Lease Liabilities [Table Text Block] | The following table provides the maturities of lease liabilities at December 31, 2021:
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FAIR VALUE MEASUREMENTS (Tables) |
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Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes the fair value of the Corporation's financial instruments at December 31, 2021 and 2020:
1.Money market fund is included in "Cash and cash equivalents" in the consolidated balance sheets and held at amortized cost, which approximates fair value.
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RELATED PARTY TRANSACTIONS (Tables) |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | The following table summarizes UCC’s transactions with TDCC and a TDCC subsidiary related to product and services agreements for the years ended December 31, 2021, 2020 and 2019:
1.Period-end balances on hand are included in inventory. The increase in purchase costs in 2021 was primarily due to higher feedstock and energy costs, which includes the impact of Winter Storm Uri in the first quarter of 2021. Amounts reported for 2019 are approximate, as reported in prior years. 2.The increase in services and fees resulted from TDCC's periodic review of the actual cost of services provided to UCC in accordance with related agreements.
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Dividends Declared | The following table summarizes cash dividends declared and paid to TDCC for the years ended 2021, 2020 and 2019:
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BUSINESS AND GEOGRAPHIC AREAS (Tables) |
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Sales are attributed to geographic regions based on customer location; long-lived assets are attributed to geographic regions based on asset location. Sales to external customers and long-lived assets by geographic region were as follows:
1.Of total sales to external customers, sales in Malaysia were approximately 2 percent in 2021, 18 percent in 2020 and 17 percent in 2019, and are included in Asia Pacific.
|
MERGER WITH HISTORICAL DUPONT AND BUSINESS SEPARATION (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2019 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Feb. 15, 2019 |
|
Dow International Holdings Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Common Stock, Related Company | 1,067 | |||
Ownership Interest Percentage, Related Company | 4.70% | 5.00% | 5.00% | 11.90% |
The Dow Chemical Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Dividends, Paid-in-kind | $ 71 | |||
The Dow Chemical Company [Member] | Dow International Holdings Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Ownership Interest Percentage, Related Company | 88.10% | |||
Dividends, Common Stock, Stock | $ 401 |
REVENUE (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Disaggregation of Revenue [Line Items] | ||
Contract liability | $ 35 | $ 40 |
Accrued Liabilities [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract with Customer, Liability, Current | 2 | 5 |
Other Noncurrent Liabilities [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract with Customer, Liability, Noncurrent | $ 33 | $ 35 |
Maximum [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 19 years |
SUPPLEMENTARY INFORMATION SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Supplemental Cash Flow Elements [Abstract] | |||
Interest, net of amounts capitalized | $ 31 | $ 41 | $ 37 |
Income taxes | $ (62) | $ 93 | $ 136 |
INCOME TAXES (Schedule of Domestic and Foreign Components of Income Before Income Taxes and Tax Reconciliation) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Geographic Allocation of Income and Provision (Credit) for Income Taxes [Abstract] | |||
Income (Loss) Before Income Taxes, Domestic | $ 531 | $ 558 | $ 696 |
Income (Loss) Before Income Taxes, Foreign | (2) | (1) | (5) |
Income before income taxes | 529 | 557 | 691 |
Current Federal Tax Expense (Benefit) | (11) | 82 | 70 |
Current State and Local Tax Expense (Benefit) | 5 | 2 | 4 |
Current Foreign Tax Expense (Benefit) | 20 | 0 | 0 |
Current Income Tax Expense (Benefit) | 14 | 84 | 74 |
Deferred Federal Income Tax Expense (Benefit) | 122 | 42 | (9) |
Deferred State and Local Income Tax Expense (Benefit) | 23 | 4 | (1) |
Deferred Foreign Income Tax Expense (Benefit) | (5) | 0 | 0 |
Deferred Income Tax Expense (Benefit) | 140 | 46 | (10) |
Provision for income taxes | 154 | 130 | 64 |
Net Income Attributable to Union Carbide Corporation | $ 375 | $ 427 | $ 627 |
INCOME TAXES (Reconciliation to U.S. Statutory Rate) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate | 21.00% | 21.00% | 21.00% |
Unrecognized tax benefits | 3.00% | (0.90%) | (1.00%) |
Federal tax accrual adjustments | 0.00% | 3.00% | 1.70% |
Restoration of tax basis | 0.00% | 0.00% | (12.20%) |
State and local tax impact | 5.30% | 0.20% | 0.90% |
Other - net | (0.20%) | 0.00% | (1.10%) |
Effective Tax Rate | 29.10% | 23.30% | 9.30% |
INCOME TAXES (Schedule of Deferred Tax Balances) (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Property, Plant and Equipment | $ 0 | $ 0 |
Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards | 23 | 34 |
Postretirement benefit obligations, Deferred Tax Assets | 119 | 318 |
Other accruals and reserves, Deferred Tax Assets | 313 | 313 |
Inventory, Deferred Tax Assets | 0 | 4 |
Other - net, deferred tax assets | 18 | 19 |
Subtotal, deferred tax assets | (473) | (688) |
Valuation allowances, deferred tax assets | (12) | (18) |
Total, deferred tax assets | 461 | 670 |
Property, Deferred Tax Liabilities | 167 | 172 |
Tax loss and credit carryforwards, Deferred Tax Liabilities, | 0 | 0 |
Postretirement benefit obligations, Deferred Tax Liabilities | 0 | 0 |
Other accruals and reserves, Deferred Tax Liabilities | 6 | 4 |
Inventory, deferred tax liabilities | 0 | 0 |
Other - net, deferred tax liabilities | 0 | 0 |
Total, deferred tax liabilities | $ 173 | $ 176 |
INCOME TAXES (Summary of Operating Loss Carryforwards) (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Deferred Tax Assets, Operating Loss Carryforwards | $ 18 | $ 28 |
Deferred Tax Assets, Tax Credit Carryforwards | 5 | 6 |
Operating Loss Carryforward and Tax Credit Carryforwards | 23 | 34 |
Undistributed Earnings of Foreign Subsidiaries | 7 | 7 |
Expiring Within Five Years [Member] | ||
Deferred Tax Assets, Operating Loss Carryforwards | 11 | 21 |
Deferred Tax Assets, Tax Credit Carryforwards | 5 | 0 |
Expiring After Five Years or Having Indefinite Expiration [Member] [Member] | ||
Deferred Tax Assets, Operating Loss Carryforwards | 7 | 7 |
Deferred Tax Assets, Tax Credit Carryforwards | $ 0 | $ 6 |
INCOME TAXES (Uncertain Tax Position) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Reconciliation of Total Gross Unrecognized Tax Benefits [Roll Forward] | |||
Gross unrecognized tax benefits, beginning balance | $ 1 | $ 1 | $ 1 |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (1) | 0 | 0 |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 8 | 0 | 0 |
Gross unrecognized tax benefits, ending balance | 8 | 1 | 1 |
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate | 8 | 1 | 1 |
Total amount of interest and penalties (benefit) recognized in "Provision for income taxes" | 11 | (5) | (7) |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 12 | $ 0 | $ 0 |
INCOME TAXES (Tax Years Subject to Examination by Major Tax Jurisdiction) (Details) |
12 Months Ended |
---|---|
Dec. 31, 2021 | |
Federal Income Tax [Member] | |
Earliest open year | 2007 |
State and Local Income Tax [Member] | |
Earliest open year | 2004 |
INVENTORIES (Schedule of Inventories) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Inventory Disclosure [Abstract] | |||
Finished goods | $ 238 | $ 157 | |
Work in process | 33 | 23 | |
Raw materials | 59 | 38 | |
Supplies | 76 | 98 | |
Total | 406 | 316 | |
Adjustment of inventories to a LIFO basis | (156) | (93) | |
Total inventories | $ 250 | $ 223 | |
Percentage of LIFO Inventory | 64.00% | 50.00% | |
Effect of LIFO Inventory Liquidation on Income | $ 0 | $ (2) | $ (14) |
PROPERTY (Schedule of Other Items Related to Property) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 167 | $ 181 | $ 175 |
Capitalized interest | $ 5 | $ 6 | $ 8 |
INVESTMENTS IN RELATED COMPANIES (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
Mar. 31, 2019 |
Feb. 15, 2019 |
---|---|---|---|---|
Schedule of Investments [Line Items] | ||||
Investments in related companies | $ 237 | $ 237 | ||
Dow International Holdings Company [Member] | ||||
Schedule of Investments [Line Items] | ||||
Ownership Interest Percentage, Related Company | 5.00% | 5.00% | 4.70% | 11.90% |
Equity Securities without Readily Determinable Fair Value, Amount | $ 232 | $ 232 | ||
Dow Quimica Mexicana S.A. de C.V. [Member] | ||||
Schedule of Investments [Line Items] | ||||
Ownership Interest Percentage, Related Company | 14.00% | 15.00% | ||
Equity Securities without Readily Determinable Fair Value, Amount | $ 5 | $ 5 |
INTANGIBLE ASSETS (Schedule of Intangible Assets) (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 116 | $ 113 |
Finite-Lived Intangible Assets, Accumulated Amortization | (103) | (97) |
Finite-Lived Intangible Assets, Net | 13 | 16 |
Licenses and Developed Technology [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 | 83 | 80 |
Finite-Lived Intangible Assets, Accumulated Amortization | (70) | (64) |
Finite-Lived Intangible Assets, Net | $ 13 | $ 16 |
INTANGIBLE ASSETS (Schedule of Amortization Expense of Intangible Assets) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Finite-Lived Intangible Assets [Line Items] | |||
Software | $ 6 | $ 8 | $ 7 |
INTANGIBLE ASSETS (Schedule of Future Amortization Expense of Intangible Assets) (Details) $ in Millions |
Dec. 31, 2021
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 5 |
2021 | 3 |
2022 | 2 |
2023 | 1 |
2024 | $ 1 |
NOTES PAYABLE AND LONG-TERM DEBT (Schedule of Notes Payable) (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Debt Disclosure [Abstract] | ||
Notes payable to related companies | $ 30 | $ 33 |
Year-end average interest rates | 1.43% | 1.25% |
NOTES PAYABLE AND LONG-TERM DEBT (Schedule of Annual Installments) (Details) $ in Millions |
Dec. 31, 2021
USD ($)
|
---|---|
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2020 | $ 3 |
2021 | 132 |
2022 | 2 |
2023 | 126 |
2024 | $ 0 |
COMMITMENTS AND CONTINGENCIES (Environmental Matters) (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||
Balance at Jan 1 | $ 133 | $ 132 | ||
Accrual adjustment | 47 | 49 | ||
Payments against reserve | (31) | (47) | ||
Foreign currency impact | (1) | (1) | ||
Balance at Dec 31 | 148 | 133 | $ 132 | |
Accrual for Environmental Loss Contingencies, Revision in Estimates | $ 55 | |||
Environmental remediation expense | 47 | 49 | 93 | |
Capital expenditures for environmental protection | 8 | 5 | $ 11 | |
Accrual For Environmental Loss Contingencies Superfund Sites [Member] | ||||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||
Balance at Jan 1 | 18 | |||
Balance at Dec 31 | $ 23 | $ 18 |
COMMITMENTS AND CONTINGENCIES (Asbestos Related Matters) (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2002 |
|
Loss Contingencies [Line Items] | ||||
Liability For Asbestos Claims Gross | $ 2,200 | |||
Percentage of Recorded Asbests Liability Related to Pending Claims | 25.00% | 22.00% | ||
Percentage of Recorded Asbestos Liability Related to Future Claims | 75.00% | 78.00% | ||
Liability for Asbestos Claims and Defense Costs Gross | $ 1,016 | $ 1,098 | ||
Asbestos liability for defense and processing costs | ||||
Loss Contingencies [Line Items] | ||||
Asbestos Related Charges Credit | $ 1,113 |
COMMITMENTS AND CONTINGENCIES (Asset Retirement Obligations) (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Asset Retirement Obligation | $ 15 | $ 17 |
Conditional Asset Retirement Obligations Carrying Value | $ 2 | $ 2 |
Asset Retirement Obligation Discount rate | 1.13% | 0.42% |
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Accumulated and Projected Benefit Obligations in Excess of Plan Assets) (Details) - Pension Plan [Member] - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 3,900 | $ 4,200 |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Accumulated Benefit Obligation | 3,935 | 4,200 |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Plan Assets | 3,611 | 3,095 |
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | 3,940 | 4,229 |
Defied Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Fair Value of Plan Assets | $ 3,611 | $ 3,095 |
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Plan Assets) (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100.00% | |
Defined Benefit Plan, Plan Assets, Amount | $ 3,600 | $ 3,100 |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 23.00% | |
Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 45.00% | |
Alternative Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 27.00% | |
Other Pension Plan Asset Category [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 5.00% |
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Defined Contribution Plans) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Cost | $ 8 | $ 7 | $ 9 |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 5.00% | ||
Automatic Non-Elective Contribution | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4.00% |
FAIR VALUE MEASUREMENTS (Basis of Fair Value Measurements on a Recurring Basis) (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | $ (395) | $ (393) |
Cash and Cash Equivalents, Fair Value Disclosure | 10 | 10 |
Long-term Debt, Fair Value | (528) | (513) |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Equivalents, at Carrying Value | 10 | 10 |
Financial Instruments Gross Unrealized Gains | 0 | 0 |
Financial Instruments Gross Unrealized Loss | 0 | 0 |
Long-term Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Instruments Gross Unrealized Gains | 0 | 0 |
Financial Instruments Gross Unrealized Loss | $ (133) | $ (120) |
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Basis of Fair Value Measurements on a Nonrecurring Basis) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Manufacturing Assets [Member] | Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Impairment Charges | $ 75 | $ 75 |
BUSINESS AND GEOGRAPHIC AREAS (Schedule of Revenue by Geographic Area and Other Details) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net trade sales | $ 154 | $ 129 | $ 138 |
Long-lived assets | 1,208 | 1,265 | 1,369 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net trade sales | 139 | 95 | 105 |
Long-lived assets | 1,169 | 1,226 | 1,329 |
Asia Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net trade sales | 4 | 23 | 24 |
Long-lived assets | 24 | 20 | 18 |
Rest of World | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net trade sales | 11 | 11 | 9 |
Long-lived assets | $ 15 | $ 19 | $ 22 |
Malaysia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of Total Sales Related to a Specific Country in a Geographic Region | 2.00% | 18.00% | 17.00% |
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