(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
☑ | ☐ | No |
☑ | ☐ | No |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||||||||||
☑ | Smaller reporting company | |||||||||||||
Emerging growth company |
Yes | ☑ | No |
Page | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 4. | ||||||||
Item 6. | ||||||||
Union Carbide Corporation and Subsidiaries |
PART I - FINANCIAL INFORMATION |
ITEM 1. FINANCIAL STATEMENTS |
Three Months Ended | Nine Months Ended | |||||||||||||
In millions (Unaudited) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||
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 | ||||||||||||||
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 | $ | $ | $ | $ | ||||||||||
Depreciation | $ | $ | $ | $ | ||||||||||
Capital expenditures | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | |||||||||||||
In millions (Unaudited) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||
Net income attributable to Union Carbide Corporation | $ | $ | $ | $ | ||||||||||
Other comprehensive income, net of tax | ||||||||||||||
Cumulative translation adjustments | ||||||||||||||
Pension and other postretirement benefit plans | ||||||||||||||
Total other comprehensive income | ||||||||||||||
Comprehensive income attributable to Union Carbide Corporation | $ | $ | $ | $ |
In millions, except share amounts (Unaudited) | Sep 30, 2023 | Dec 31, 2022 | ||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Accounts receivable: | ||||||||
Trade (net of allowance for doubtful receivables 2023: $ | ||||||||
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 2023: $ | ||||||||
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 | $ | $ | ||||||
Notes payable - other | ||||||||
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 | ||||||||
Stockholder's Equity | ||||||||
Common stock (authorized: | ||||||||
Additional paid-in capital | ||||||||
Retained earnings | ||||||||
Accumulated other comprehensive loss | ( | ( | ||||||
Union Carbide Corporation's stockholder's equity | ||||||||
Total Liabilities and Equity | $ | $ |
Nine Months Ended | ||||||||
In millions (Unaudited) | Sep 30, 2023 | Sep 30, 2022 | ||||||
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 on sales of property and investments | ( | ( | ||||||
Restructuring and asset related charges - net | ||||||||
Net periodic pension benefit cost | ||||||||
Pension contributions | ( | ( | ||||||
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 used for investing activities | ( | ( | ||||||
Financing Activities | ||||||||
Dividends paid to parent | ( | ( | ||||||
Changes in short-term notes payable | ( | |||||||
Payments on long-term debt | ( | ( | ||||||
Cash used for financing activities | ( | ( | ||||||
Summary | ||||||||
Decrease in cash and cash equivalents | ( | |||||||
Cash and cash equivalents at beginning of period | ||||||||
Cash and cash equivalents at end of period | $ | $ |
Three Months Ended | Nine Months Ended | |||||||||||||
In millions (Unaudited) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||
Common Stock | ||||||||||||||
Balance at beginning and end of period | $ | $ | $ | $ | ||||||||||
Additional Paid-in Capital | ||||||||||||||
Balance at beginning and end of period | ||||||||||||||
Retained Earnings | ||||||||||||||
Balance at beginning of period | ||||||||||||||
Net income attributable to Union Carbide Corporation | ||||||||||||||
Dividends declared | ( | ( | ( | ( | ||||||||||
Balance at end of period | ||||||||||||||
Accumulated Other Comprehensive Loss, Net of Tax | ||||||||||||||
Balance at beginning of period | ( | ( | ( | ( | ||||||||||
Other comprehensive income | ||||||||||||||
Balance at end of period | ( | ( | ( | ( | ||||||||||
Union Carbide Corporation's Stockholder's Equity | $ | $ | $ | $ |
Union Carbide Corporation and Subsidiaries | ||
(Unaudited) |
Note | Page | ||||||||||
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2 | |||||||||||
3 | |||||||||||
4 | |||||||||||
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6 | |||||||||||
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9 | |||||||||||
10 | |||||||||||
11 | |||||||||||
12 |
Inventories | Sep 30, 2023 | Dec 31, 2022 | ||||||
In millions | ||||||||
Finished goods | $ | $ | ||||||
Work in process | ||||||||
Raw materials | ||||||||
Supplies | ||||||||
Total | $ | $ | ||||||
Adjustment of inventories to the LIFO basis | ( | ( | ||||||
Total inventories | $ | $ |
Lease Cost | Three Months Ended | Nine Months Ended | ||||||||||||
In millions | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||
Operating lease cost | $ | $ | $ | $ | ||||||||||
Short-term lease cost | ||||||||||||||
Variable lease cost | ||||||||||||||
Amortization of right-of-use assets - finance | ||||||||||||||
Total lease cost | $ | $ | $ | $ |
Accumulated Other Comprehensive Loss | Three Months Ended | Nine Months Ended | ||||||||||||
In millions | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||
Cumulative Translation Adjustment | ||||||||||||||
Beginning balance | $ | ( | $ | ( | $ | ( | $ | ( | ||||||
Unrealized gains (losses) on foreign currency translation | ||||||||||||||
Ending balance | $ | ( | $ | ( | $ | ( | $ | ( | ||||||
Pension and Other Postretirement Benefits | ||||||||||||||
Beginning balance | $ | ( | $ | ( | $ | ( | $ | ( | ||||||
Amortization of net loss and prior service credit reclassified from AOCL to net income 1 | ||||||||||||||
Tax expense (benefit) 2 | ( | ( | ( | ( | ||||||||||
Net loss and prior service credit reclassified from AOCL to net income | ||||||||||||||
Ending balance | $ | ( | $ | ( | $ | ( | $ | ( | ||||||
Total AOCL ending balance | $ | ( | $ | ( | $ | ( | $ | ( |
Net Periodic Benefit Cost (Credit) for All Significant Plans | Three Months Ended | Nine Months Ended | ||||||||||||
In millions | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||
Defined Benefit Pension Plans | ||||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||
Interest cost | ||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | ||||||||||
Amortization of prior service credit | ( | |||||||||||||
Amortization of net loss | ||||||||||||||
Net periodic benefit cost | $ | $ | $ | $ | ||||||||||
Other Postretirement Benefit Plan | ||||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||
Interest cost | ||||||||||||||
Amortization of net gain | ( | ( | ( | ( | ||||||||||
Net periodic benefit credit | $ | ( | $ | ( | $ | ( | $ | ( |
Fair Value of Financial Instruments | Sep 30, 2023 | Dec 31, 2022 | ||||||||||||||||||||||||
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 | Three Months Ended | Nine Months Ended | |||||||||||||||
Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | Income Statement Classification | |||||||||||||
In millions | |||||||||||||||||
TDCC Subsidiary: | |||||||||||||||||
Commodity and raw material purchases 1 | $ | $ | $ | $ | Cost of sales | ||||||||||||
Commission expense | $ | $ | $ | $ | Sundry income (expense) - net | ||||||||||||
TDCC: | |||||||||||||||||
General administrative and overhead type services and service fee | $ | $ | $ | $ | Sundry income (expense) - net | ||||||||||||
Activity-based costs 2 | $ | $ | $ | $ | Cost of sales |
Cash Dividends Declared and Paid | Three Months Ended | Nine Months Ended | ||||||||||||
Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | |||||||||||
In millions | ||||||||||||||
Cash dividends declared and paid | $ | $ | $ | $ |
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Asbestos-Related Claim Activity | 2023 | 2022 | ||||||
Claims unresolved at Jan 1 | 6,873 | 8,747 | ||||||
Claims filed | 3,097 | 3,662 | ||||||
Claims settled, dismissed or otherwise resolved | (3,428) | (5,823) | ||||||
Claims unresolved at Sep 30 | 6,542 | 6,586 | ||||||
Claimants with claims against both UCC and Amchem | (1,452) | (1,502) | ||||||
Individual claimants at Sep 30 | 5,090 | 5,084 |
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. CONTROLS AND PROCEDURES |
Union Carbide Corporation and Subsidiaries PART II - OTHER INFORMATION |
ITEM 1. LEGAL PROCEEDINGS |
ITEM 1A. RISK FACTORS |
ITEM 4. MINE SAFETY DISCLOSURES |
ITEM 6. EXHIBITS |
EXHIBIT NO. | DESCRIPTION | ||||||||||
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. | ||||||||||
23 * | Ankura Consulting Group, LLC's Consent. | ||||||||||
31.1 * | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||||
31.2 * | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||||
32.1 * | Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||||
32.2 * | Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||||
101.INS | 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. |
Union Carbide Corporation and Subsidiaries Signatures |
Date: | October 25, 2023 |
/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/ IGNACIO MOLINA | ||
Ignacio Molina Vice President, Treasurer and Chief Financial Officer |
Ankura Consulting Group, LLC's Consent | EXHIBIT 23 |
/s/ AMY BROCKMAN | ||||||||
Amy Brockman Senior Managing Director Ankura Consulting Group, LLC |
Union Carbide Corporation and Subsidiaries | EXHIBIT 31.1 |
/s/ FERNANDO SIGNORINI | ||
Fernando Signorini President and Chief Executive Officer |
Union Carbide Corporation and Subsidiaries | EXHIBIT 31.2 |
/s/ IGNACIO MOLINA | ||
Ignacio Molina Vice President, Treasurer and Chief Financial Officer |
Union Carbide Corporation and Subsidiaries | EXHIBIT 32.1 |
/s/ FERNANDO SIGNORINI | ||
Fernando Signorini President and Chief Executive Officer |
Union Carbide Corporation and Subsidiaries | EXHIBIT 32.2 |
/s/ IGNACIO MOLINA | ||
Ignacio Molina Vice President, Treasurer and Chief Financial Officer |
Consolidated Statements of Income - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Income Statement [Abstract] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 30 | $ 54 | $ 94 | $ 157 |
Net sales to related companies | 1,108 | 1,284 | 3,284 | 4,228 |
Net trade sales | 1,138 | 1,338 | 3,378 | 4,385 |
Cost of sales | 1,007 | 1,163 | 2,913 | 3,687 |
Research and development expenses | 5 | 6 | 16 | 20 |
Selling, general and administrative expenses | 2 | 4 | 8 | 8 |
Restructuring and asset related charges - net | 0 | 0 | 14 | 0 |
Sundry income (expense) - net | (22) | (12) | (67) | (40) |
Interest Income, Other | 10 | 6 | 30 | 9 |
Interest expense and amortization of debt discount | 3 | 6 | 13 | 20 |
Income before income taxes | 109 | 153 | 377 | 619 |
Provision for income taxes | 23 | 34 | 79 | 144 |
Net Income Attributable to Union Carbide Corporation | $ 86 | $ 119 | $ 298 | $ 475 |
Consolidated Statements of Income - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Supplemental Income Statement Elements [Abstract] | ||||
Depreciation | $ 37 | $ 41 | $ 113 | $ 124 |
Capital expenditures | $ 83 | $ 41 | $ 203 | $ 91 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income attributable to Union Carbide Corporation | $ 86 | $ 119 | $ 298 | $ 475 |
Cumulative translation adjustments | 0 | 0 | 2 | 0 |
Pension and other postretirement benefit plans | 9 | 19 | 28 | 57 |
Total other comprehensive income | 9 | 19 | 30 | 57 |
Comprehensive income attributable to Union Carbide Corporation | $ 95 | $ 138 | $ 328 | $ 532 |
Consolidated Balance Sheets Parentheticals - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 0 | $ 0 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 102 | $ 100 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 935.51 | 935.51 |
Organization, Consolidation and Presentation of Financial Statements |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | CONSOLIDATED FINANCIAL STATEMENTS Basis of Presentation The unaudited interim consolidated financial statements of Union Carbide Corporation and its subsidiaries (the "Corporation" or "UCC") were prepared in accordance with accounting principles generally accepted in the United States of America and reflect all adjustments (including normal recurring accruals) which, in the opinion of management, are considered necessary for the fair presentation of the results for the periods presented. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2022 ("2022 10-K"). 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 operations 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. 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 12 for additional information.
|
RECENT ACCOUNTING GUIDANCE |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Standards Update and Change in Accounting Principle | RECENT ACCOUNTING GUIDANCERecently Adopted Accounting GuidanceIn the first quarter of 2023, the Corporation adopted the interim period disclosure requirements of Accounting Standards Update ("ASU") 2022-04, "Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations." The ASU, issued in September 2022, requires disclosures intended to enhance the transparency of supplier finance programs. Specifically, the amendments require buyers in a supplier finance program to disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period and potential magnitude. The amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for disclosure of rollforward information, which is required to be disclosed annually and is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The amendments should be applied retrospectively to each period in which a balance sheet is presented, except for disclosure of rollforward information, which should be applied prospectively. The Corporation expects to early adopt the annual requirement to disclose rollforward information prospectively beginning in the 2023 annual financial statements. See Note 6 for disclosures related to the Corporation's supplier finance program. |
REVENUE FROM CONTRACT WITH CUSTOMERS |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE Substantially all of the Corporation's revenue is generated by sales of products 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. 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 17 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 $31 million at September 30, 2023 ($33 million at December 31, 2022), of which $2 million ($2 million at December 31, 2022) was included in "Accrued and other current liabilities" and $29 million ($31 million at December 31, 2022) was included in "Other noncurrent obligations" in the consolidated balance sheets. The Corporation disaggregates its revenue from contracts with customers by type of customer (net sales to related companies and net sales to trade customers) as presented in 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.
|
Restructuring and Related Activities |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure | RESTRUCTURING AND ASSET RELATED CHARGES - NET 2023 Restructuring Program In the first quarter of 2023, the Corporation initiated restructuring actions to achieve its structural cost improvement initiatives in response to the continued economic impact from the global recessionary environment and to enhance its agility and long-term competitiveness across the economic cycle. The program includes workforce cost reductions and actions to rationalize the Corporation's manufacturing assets, which includes asset write-down and write-off charges. As a result of these actions, the Corporation recorded pretax restructuring charges of $14 million, included in "Restructuring and asset related charges - net" in the consolidated statements of income. The charges consisted of severance and related benefit costs of $12 million and asset write-downs and write-offs of $2 million. These actions are expected to be substantially complete by the end of 2024. The Corporation paid $9 million for severance and related benefit costs through September 30, 2023. At September 30, 2023, a liability for severance and related benefit costs of $1 million was included in "Accrued and other current liabilities" and $2 million was included in "Other noncurrent obligations" in the consolidated balance sheets.
|
INVENTORIES |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES The following table provides a breakdown of inventories:
|
Supplier Finance Program |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Supplier Finance Program | SUPPLIER FINANCE PROGRAMThe Corporation is a party to a supply chain financing (“SCF”) program, facilitated by TDCC, which can be used in the ordinary course of business to extend payment terms with the Corporation's vendors. Under the terms of this program, a vendor can voluntarily enter into an agreement with a participating financial intermediary to sell its receivables due from the Corporation. The vendor receives payment from the financial intermediary, and the Corporation pays the financial intermediary on the terms originally negotiated with the vendor, which generally range from 90 to 120 days. The vendor negotiates the terms of the agreements directly with the financial intermediary and the Corporation is not a party to that agreement. The financial intermediary may allow the participating vendor to utilize TDCC's creditworthiness in establishing credit spreads and associated costs, which may provide the vendor with more favorable terms than they would be able to secure on their own. Neither TDCC nor the Corporation provide guarantees related to the SCF program. At September 30, 2023, the Corporation's outstanding obligations confirmed as valid under the SCF program were $25 million ($29 million at December 31, 2022), included in “Accounts payable – Trade” in the consolidated balance sheets. |
COMMITMENTS AND CONTINGENCIES |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES DISCLOSURE | COMMITMENTS AND CONTINGENCIES A summary of the Corporation's commitments and contingencies can be found in Note 13 to the Consolidated Financial Statements included in the 2022 10-K, which is incorporated by reference herein. Environmental Matters Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. At September 30, 2023, the Corporation had accrued obligations of $203 million for probable environmental remediation and restoration costs ($183 million at December 31, 2022), including $37 million for the remediation of Superfund sites ($36 million at December 31, 2022). 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 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 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. During the first quarter of 2022, the Corporation recorded a pretax charge of $37 million, included in "Cost of sales" in the consolidated statements of income, related to environmental remediation at a number of current and historical locations. The charge primarily resulted from updated remediation estimates and scope changes on existing matters. Litigation Asbestos-Related Matters Each quarter, the Corporation reviews asbestos-related claims filed, settled and dismissed, as well as average settlement and resolution costs by disease category. The Corporation also considers additional quantitative and qualitative factors such as the nature of pending claims, trial experience of the Corporation and other asbestos defendants, current spending for defense and processing costs, significant appellate rulings and legislative developments, trends in the tort system, and their respective effects on expected future resolution costs. UCC management considers these factors in conjunction with the most recent actuarial study and determines whether a change in the estimate is warranted. Based on the Corporation's review of 2023 activity, it was determined that no adjustment to the accrual was required at September 30, 2023. The Corporation’s total asbestos-related liability for pending and future claims and defense and processing costs was $884 million at September 30, 2023 ($947 million at December 31, 2022), and was included in “Asbestos-related liabilities - current” and “Asbestos-related liabilities - noncurrent” in the consolidated balance sheets. At September 30, 2023, approximately 23 percent of the recorded claim liability related to pending claims and approximately 77 percent related to future claims.
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LEASES (Notes) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee, Operating And Finance Leases | LEASES For additional information on the Corporation's leases, see Note 14 to the Consolidated Financial Statements included in the 2022 10-K. The components of lease cost for operating and finance leases for the three and nine months ended September 30, 2023 and 2022 were as follows:
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AOCL |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in the balances for each component of accumulated other comprehensive loss ("AOCL") for the three and nine months ended September 30, 2023 and 2022 were as follows:
1.These AOCL components are included in the computation of net periodic benefit cost (credit) of the Corporation's defined benefit pension and other postretirement benefit plans. See Note 10 for additional information. 2.Reclassified to "Provision for income taxes."
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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefits Disclosure [Text Block] | PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS A summary of the Corporation's pension and other postretirement benefit plans can be found in Note 16 to the Consolidated Financial Statements included in the 2022 10-K. The following table provides the components of the Corporation's net periodic benefit cost (credit) for all significant 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.
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Fair Value Measures and Disclosures |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments Disclosure [Text Block] | 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. The following table summarizes the fair value of the Corporation's financial instruments at September 30, 2023 and December 31, 2022:
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 As part of the 2023 Restructuring Program, the Corporation rationalized its manufacturing assets to achieve its structural cost improvement initiatives. In the first quarter of 2023, the manufacturing assets associated with this plan, classified as Level 3 measurements and valued using unobservable inputs, were written down to zero and the Corporation recorded an impairment charge of $2 million, which was included in "Restructuring and asset related charges - net" in the consolidated statements of income.
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RELATED PARTY TRANSACTIONS |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RELATED PARTY TRANSACTIONS DISCLOSURE | RELATED PARTY TRANSACTIONS A summary of the Corporation's related party transactions can be found in Note 18 to the Consolidated Financial Statements included in the 2022 10-K. Product and Services Agreements The following table summarizes UCC’s transactions with TDCC and a TDCC subsidiary related to product and services agreements for the three and nine months ended September 30, 2023 and 2022:
1.Period-end balances on hand are included in inventory. The decrease in purchase costs was primarily due to lower feedstock and energy costs and lower production. 2.The year-to-date increase in activity-based costs was primarily due to labor expense for engineering related to capital investment activity on the U.S. Gulf Coast. The following table summarizes cash dividends declared and paid to TDCC for the three and nine months ended September 30, 2023 and 2022:
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INVENTORIES (Tables) |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, Current [Table Text Block] | The following table provides a breakdown of inventories:
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LEASES (Tables) |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost [Table Text Block] | The components of lease cost for operating and finance leases for the three and nine months ended September 30, 2023 and 2022 were as follows:
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AOCL (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Other Comprehensive Income (Loss) | The changes in the balances for each component of accumulated other comprehensive loss ("AOCL") for the three and nine months ended September 30, 2023 and 2022 were as follows:
1.These AOCL components are included in the computation of net periodic benefit cost (credit) of the Corporation's defined benefit pension and other postretirement benefit plans. See Note 10 for additional information. 2.Reclassified to "Provision for income taxes."
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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables) |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Benefit Cost for All Significant Plans | The following table provides the components of the Corporation's net periodic benefit cost (credit) for all significant plans:
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Fair Value Measures and Disclosures (Tables) |
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table summarizes the fair value of the Corporation's financial instruments at September 30, 2023 and December 31, 2022:
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 Disclosures (Tables) |
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 three and nine months ended September 30, 2023 and 2022:
1.Period-end balances on hand are included in inventory. The decrease in purchase costs was primarily due to lower feedstock and energy costs and lower production. 2.The year-to-date increase in activity-based costs was primarily due to labor expense for engineering related to capital investment activity on the U.S. Gulf Coast.
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Dividends Declared | The following table summarizes cash dividends declared and paid to TDCC for the three and nine months ended September 30, 2023 and 2022:
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Revenue from Contract with Customer (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Revenue from External Customer [Line Items] | ||
Contract with Customer, Liability | $ 31 | $ 33 |
Accrued Liabilities [Member] | ||
Revenue from External Customer [Line Items] | ||
Contract with Customer, Liability, Current | 2 | 2 |
Other Noncurrent Liabilities [Member] | ||
Revenue from External Customer [Line Items] | ||
Contract with Customer, Liability, Noncurrent | $ 29 | $ 31 |
Maximum [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue, Performance Obligation, Description of Timing | 17 years |
Restructuring and Related Activities (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
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Sep. 30, 2023 |
Mar. 31, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and asset related charges - net | $ 0 | $ 14 | $ 0 | $ 14 | $ 0 |
Accrued and Other Current Liabilities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 1 | 1 | |||
Other Noncurrent Obligations | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | $ 2 | 2 | |||
Employee Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and asset related charges - net | 12 | ||||
Payments for Restructuring | $ 9 | ||||
Asset write-downs and write-offs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and asset related charges - net | $ 2 |
INVENTORIES (Schedule of Inventories) (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
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Inventory Disclosure [Abstract] | ||
Finished goods | $ 193 | $ 218 |
Work in process | 37 | 37 |
Raw materials | 62 | 76 |
Supplies | 94 | 87 |
Inventory, Gross | 386 | 418 |
Inventory Adjustments | (138) | (162) |
Total inventories | $ 248 | $ 256 |
Supplier Finance Program (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
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Minimum [Member] | ||
Supplier Finance Program [Line Items] | ||
Supplier Finance Program, Payment Timing, Period | 90 days | |
Maximum [Member] | ||
Supplier Finance Program [Line Items] | ||
Supplier Finance Program, Payment Timing, Period | 120 days | |
Accounts Payable | ||
Supplier Finance Program [Line Items] | ||
Supplier Finance Program Obligation, Current | $ 25 | $ 29 |
COMMITMENTS AND CONTINGENCIES (Environmental Matters) (Narrative) (Details) - USD ($) $ in Millions |
9 Months Ended | ||
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Sep. 30, 2022 |
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Site Contingency [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ 203 | $ 183 | |
Accrual for Environmental Loss Contingencies, Revision in Estimates | $ 37 | ||
Super Fund Sites [Member] | |||
Site Contingency [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ 37 | $ 36 |
COMMITMENTS AND CONTINGENCIES (Asbestos-Related Matters of Union Carbide Corporation) (Table and Narrative) (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Loss Contingencies [Line Items] | ||
Liability for Asbestos and Environmental Claims, Gross | $ 884 | $ 947 |
Percentage of recorded asbestos liability related to pending claims | 23.00% | |
Percentage of recorded asbestos liability related to future claims | 77.00% |
LEASES COSTS AND OTHER INFORMATION (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Operating Lease Cost | $ 6 | $ 6 | $ 19 | $ 18 |
Short-term Lease Cost | 11 | 7 | 32 | 23 |
Variable Lease, Cost | 3 | 5 | 15 | 14 |
Finance Lease, Right-of-Use Asset, Amortization | 0 | 1 | 2 | 2 |
Lease, Cost | $ 20 | $ 19 | $ 68 | $ 57 |
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Defined Benefit Pension Plans [Member] | ||||
Service cost | $ 8 | $ 10 | $ 25 | $ 28 |
Interest cost | 38 | 21 | 112 | 67 |
Expected return on plan assets | 52 | 57 | 156 | 170 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 0 | 0 | (1) |
Defined Benefit Plan, Amortization of Gain (Loss) | (16) | (28) | (48) | (82) |
Net periodic benefit cost (credit) | 10 | 2 | 29 | 6 |
Other Postretirement Benefits [Member] | ||||
Service cost | 0 | 1 | 0 | 1 |
Interest cost | 2 | 1 | 5 | 3 |
Defined Benefit Plan, Amortization of Gain (Loss) | 4 | 3 | 11 | 7 |
Net periodic benefit cost (credit) | $ (2) | $ (1) | $ (6) | $ (3) |
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