Delaware
|
|
38-1285128
|
State or other jurisdiction of
incorporation or organization
|
|
(I.R.S. Employer Identification No.)
|
|
Large accelerated filer
|
|
¨
|
|
Accelerated filer
|
|
¨
|
|
Non-accelerated filer
|
|
þ
|
|
Smaller reporting company
|
|
¨
|
|
|
|
|
|
Emerging growth company
|
|
¨
|
PAGE
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
The Dow Chemical Company and Subsidiaries
|
|
•
|
Expansion of the capacity of the Company’s new ethylene production facility, bringing the facility’s total ethylene capacity to 2,000 kilotonnes per annum (“KTA”) and making it the largest ethylene facility in the world.
|
•
|
Incremental debottleneck projects across its global asset network that will deliver approximately 350 KTA of additional polyethylene, the majority of which will be in North America.
|
•
|
Construction of a 600 KTA polyethylene unit on the U.S. Gulf Coast based on Dow’s proprietary solution process technology, to meet consumer-driven demand in specialty packaging, health and hygiene, and industrial and consumer packaging applications.
|
•
|
Construction of a 450 KTA polyolefins facility in Europe to maximize the value of the Company’s ethylene integration in the region and serve growing demand for high-performance pressure pipes and fittings, as well as caps and closures applications.
|
•
|
A new catalyst production business for key catalysts licensed by Univation Technologies, LLC, a wholly-owned subsidiary of Dow.
|
•
|
Low capital intensity, high return investments in the Company's silicones franchise, including: a series of incremental siloxane debottleneck and efficiency improvement projects around the world; a new hydroxyl functional siloxane polymer plant in the U.S.; and a new specialty resin plant in China.
|
Remaining Life of Patents Owned at Dec 31, 2018
|
United States
|
Foreign
|
||
Within 5 years
|
1,400
|
|
5,600
|
|
6 to 10 years
|
1,500
|
|
10,200
|
|
11 to 15 years
|
3,000
|
|
15,300
|
|
16 to 20 years
|
600
|
|
1,100
|
|
Total
|
6,500
|
|
32,200
|
|
Principal Nonconsolidated Affiliate
|
Country
|
Ownership Interest
|
Business Description
|
|
EQUATE Petrochemical Company K.S.C.C.
|
Kuwait
|
42.50
|
%
|
Manufactures ethylene, polyethylene and ethylene glycol, and manufactures and markets monoethylene glycol, diethylene glycol and polyethylene terephthalate resins
|
The HSC Group:
|
|
|
|
|
DC HSC Holdings LLC
1
|
United States
|
50.00
|
%
|
Manufactures polycrystalline silicon products
|
Hemlock Semiconductor L.L.C.
|
United States
|
50.10
|
%
|
Sells polycrystalline silicon products
|
The Kuwait Olefins Company K.S.C.C.
|
Kuwait
|
42.50
|
%
|
Manufactures ethylene and ethylene glycol
|
The Kuwait Styrene Company K.S.C.C.
|
Kuwait
|
42.50
|
%
|
Manufactures styrene monomer
|
Map Ta Phut Olefins Company Limited
2
|
Thailand
|
32.77
|
%
|
Manufactures propylene and ethylene
|
Sadara Chemical Company
3
|
Saudi Arabia
|
35.00
|
%
|
Manufactures chlorine, ethylene, propylene and aromatics for internal consumption and manufactures and sells polyethylene, ethylene oxide and propylene oxide derivative products and isocyanates
|
The SCG-Dow Group:
|
|
|
|
|
Siam Polyethylene Company Limited
|
Thailand
|
50.00
|
%
|
Manufactures polyethylene
|
Siam Polystyrene Company Limited
|
Thailand
|
50.00
|
%
|
Manufactures polystyrene
|
Siam Styrene Monomer Co., Ltd.
|
Thailand
|
50.00
|
%
|
Manufactures styrene
|
Siam Synthetic Latex Company Limited
|
Thailand
|
50.00
|
%
|
Manufactures latex and specialty elastomers
|
1.
|
DC HSC Holdings LLC holds an
80.5 percent
indirect ownership interest in Hemlock Semiconductor Operations LLC.
|
2.
|
The Company's effective ownership of Map Ta Phut Olefins Company Limited is 32.77 percent, of which the Company directly owns 20.27 percent and indirectly owns 12.5 percent through its equity interest in Siam Polyethylene Company Limited.
|
3.
|
Dow is responsible for marketing the majority of Sadara products outside of the Middle East zone through the Company's established sales channels. Under this arrangement, the Company purchases and sells Sadara products for a marketing fee.
|
Sales Variances by Geographic Region
|
Local Price & Product Mix
|
Currency
|
Volume
|
Portfolio & Other
|
Total
|
|||||
Percentage change from prior year
|
||||||||||
2018
|
|
|
|
|
|
|||||
U.S. & Canada
|
3
|
%
|
—
|
%
|
1
|
%
|
—
|
%
|
4
|
%
|
EMEA
|
4
|
|
4
|
|
3
|
|
—
|
|
11
|
|
Asia Pacific
|
2
|
|
1
|
|
15
|
|
(1
|
)
|
17
|
|
Latin America
|
3
|
|
—
|
|
3
|
|
(3
|
)
|
3
|
|
Total
|
4
|
%
|
1
|
%
|
5
|
%
|
(1
|
)%
|
9
|
%
|
|
|
|
|
|
|
|||||
2017
|
|
|
|
|
|
|||||
U.S. & Canada
|
6
|
%
|
—
|
%
|
5
|
%
|
4
|
%
|
15
|
%
|
EMEA
|
10
|
|
1
|
|
6
|
|
3
|
|
20
|
|
Asia Pacific
|
4
|
|
—
|
|
7
|
|
7
|
|
18
|
|
Latin America
|
2
|
|
—
|
|
(1
|
)
|
—
|
|
1
|
|
Total
|
6
|
%
|
—
|
%
|
5
|
%
|
4
|
%
|
15
|
%
|
|
|
|
|
|
|
|||||
2016
|
|
|
|
|
|
|||||
U.S. & Canada
|
(7
|
)%
|
—
|
%
|
3
|
%
|
2
|
%
|
(2
|
)%
|
EMEA
|
(6
|
)
|
(1
|
)
|
4
|
|
(1
|
)
|
(4
|
)
|
Asia Pacific
|
(6
|
)
|
—
|
|
6
|
|
9
|
|
9
|
|
Latin America
|
(6
|
)
|
—
|
|
—
|
|
(1
|
)
|
(7
|
)
|
Total
|
(6
|
)%
|
—
|
%
|
3
|
%
|
2
|
%
|
(1
|
)%
|
Cash Flow Summary
|
2018
|
2017
1
|
2016
1
|
||||||
In millions
|
|||||||||
Cash provided by (used for):
|
|
|
|
||||||
Operating activities
|
$
|
3,894
|
|
$
|
(4,958
|
)
|
$
|
(2,957
|
)
|
Investing activities
|
(2,128
|
)
|
7,552
|
|
5,092
|
|
|||
Financing activities
|
(5,164
|
)
|
(3,331
|
)
|
(4,014
|
)
|
|||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(100
|
)
|
320
|
|
(77
|
)
|
|||
Summary
|
|
|
|
||||||
Decrease in cash, cash equivalents and restricted cash
|
(3,498
|
)
|
(417
|
)
|
(1,956
|
)
|
|||
Cash, cash equivalents and restricted cash at beginning of year
|
6,207
|
|
6,624
|
|
8,580
|
|
|||
Cash, cash equivalents and restricted cash at end of year
|
$
|
2,709
|
|
$
|
6,207
|
|
$
|
6,624
|
|
Less: Restricted cash and cash equivalents, included in "Other current assets"
|
40
|
|
19
|
|
17
|
|
|||
Cash and cash equivalents at end of year
|
$
|
2,669
|
|
$
|
6,188
|
|
$
|
6,607
|
|
1.
|
Updated for ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" (including SEC interpretive guidance) and ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash." See Notes
1
and
2
to the Consolidated Financial Statements for additional information.
|
Cash Flows from Operating Activities Excluding Impact of ASU 2016-15 and Additional Interpretive Guidance (non-GAAP)
|
2018
|
2017
|
2016
|
|||||||
In millions
|
||||||||||
Cash flows from operating activities - Updated for impact of ASU 2016-15 and additional interpretive guidance (GAAP)
|
$
|
3,894
|
|
$
|
(4,958
|
)
|
$
|
(2,957
|
)
|
|
Less: Impact of ASU 2016-15 and additional interpretive guidance
|
(657
|
)
|
(9,462
|
)
|
(8,551
|
)
|
||||
Cash flows from operating activities - Excluding impact of ASU 2016-15 and additional interpretive guidance (non-GAAP)
|
$
|
4,551
|
|
$
|
4,504
|
|
$
|
5,594
|
|
Total Debt at Dec 31
|
|
|
||||
In millions
|
2018
|
2017
|
||||
Notes payable
|
$
|
305
|
|
$
|
484
|
|
Long-term debt due within one year
|
340
|
|
752
|
|
||
Long-term debt
|
19,254
|
|
19,765
|
|
||
Gross debt
|
$
|
19,899
|
|
$
|
21,001
|
|
- Cash and cash equivalents
|
$
|
2,669
|
|
$
|
6,188
|
|
- Marketable securities
|
100
|
|
4
|
|
||
Net debt
|
$
|
17,130
|
|
$
|
14,809
|
|
Gross debt as a percent of total capitalization
|
41.6
|
%
|
43.7
|
%
|
||
Net debt as a percent of total capitalization
|
38.0
|
%
|
35.4
|
%
|
Credit Ratings
|
Long-Term Rating
|
Short-Term Rating
|
Outlook
|
Standard & Poor’s
|
BBB
|
A-2
|
Stable
|
Moody’s Investors Service
|
Baa2
|
P-2
|
Stable
|
Fitch Ratings
|
BBB+
|
F2
|
Stable
|
Dividends Paid for the Years Ended Dec 31
|
2017
|
2016
|
||||
In millions, except per share amounts
|
||||||
Dividends paid, per common share
|
$
|
1.84
|
|
$
|
1.84
|
|
Dividends paid to common stockholders
|
$
|
2,179
|
|
$
|
2,037
|
|
Dividends paid to preferred shareholders
1
|
$
|
—
|
|
$
|
425
|
|
1.
|
Dividends paid to preferred shareholders in 2016 includes payment of the fourth quarter 2016 declared dividend.
|
Contractual Obligations at Dec 31, 2018
|
Payments Due In
|
|
|||||||||||||
In millions
|
2019
|
2020-2021
|
2022-2023
|
2024 and beyond
|
Total
|
||||||||||
Long-term debt obligations
1
|
$
|
340
|
|
$
|
8,080
|
|
$
|
1,990
|
|
$
|
9,518
|
|
$
|
19,928
|
|
Expected cash requirements for interest
2
|
949
|
|
1,779
|
|
1,172
|
|
6,915
|
|
10,815
|
|
|||||
Pension and other postretirement benefits
|
370
|
|
818
|
|
2,576
|
|
5,614
|
|
9,378
|
|
|||||
Operating leases
|
412
|
|
697
|
|
550
|
|
978
|
|
2,637
|
|
|||||
Purchase obligations
3
|
3,160
|
|
4,719
|
|
3,801
|
|
6,476
|
|
18,156
|
|
|||||
Other noncurrent obligations
4
|
—
|
|
900
|
|
606
|
|
1,750
|
|
3,256
|
|
|||||
Total
|
$
|
5,231
|
|
$
|
16,993
|
|
$
|
10,695
|
|
$
|
31,251
|
|
$
|
64,170
|
|
1.
|
Excludes unamortized debt discount and issuance costs of
$334 million
. Includes capital lease obligations of
$369 million
. Assumes the option to extend the Dow Silicones Term Loan facility will be exercised.
|
2.
|
Cash requirements for interest on long-term debt was calculated using current interest rates at
December 31, 2018
, and includes $4,915 million of various floating rate notes.
|
3.
|
Includes outstanding purchase orders and other commitments greater than $1 million obtained through a survey conducted within the Company.
|
4.
|
Includes liabilities related to asbestos litigation, environmental remediation, legal settlements and other noncurrent liabilities. The table excludes uncertain tax positions due to uncertainties in the timing of the effective settlement of tax positions with the respective taxing authorities and deferred tax liabilities as it is impractical to determine whether there will be a cash impact related to these liabilities. The table also excludes deferred revenue as it does not represent future cash requirements arising from contractual payment obligations.
|
•
|
Conserve - aggressively pursue energy efficiency and conservation
|
•
|
Optimize - increase and diversify energy resources
|
•
|
Accelerate - develop cost-effective, clean, renewable and alternative energy sources
|
•
|
Transition - to a sustainable energy future
|
Environmental Sites
|
Dow-owned Sites
1
|
Superfund Sites
2
|
||||||
|
2018
|
2017
|
2018
|
2017
|
||||
Number of sites at Jan 1
|
244
|
|
189
|
|
131
|
|
131
|
|
Sites added during year
|
3
|
|
60
|
|
2
|
|
2
|
|
Sites closed during year
|
(9
|
)
|
(5
|
)
|
(2
|
)
|
(2
|
)
|
Number of sites at Dec 31
|
238
|
|
244
|
|
131
|
|
131
|
|
1.
|
Dow-owned sites are sites currently or formerly owned by Dow. In the United States, remediation obligations are imposed by the Resource Conservation and Recovery Act or analogous state law. At
December 31, 2018
,
32
of these sites (
35
sites at
December 31, 2017
) were formerly owned by Dowell Schlumberger, Inc., a group of companies in which the Company previously owned a 50 percent interest. Dow sold its interest in Dowell Schlumberger in 1992.
|
2.
|
Superfund sites are sites, including sites not owned by Dow, where remediation obligations are imposed by Superfund Law.
|
Asbestos-Related Claim Activity
|
2018
|
2017
|
2016
|
|||
Claims unresolved at Jan 1
|
15,427
|
|
16,141
|
|
18,778
|
|
Claims filed
|
6,599
|
|
7,010
|
|
7,813
|
|
Claims settled, dismissed or otherwise resolved
|
(9,246
|
)
|
(7,724
|
)
|
(10,450
|
)
|
Claims unresolved at Dec 31
|
12,780
|
|
15,427
|
|
16,141
|
|
Claimants with claims against both Union Carbide and Amchem
|
(4,675
|
)
|
(5,530
|
)
|
(5,741
|
)
|
Individual claimants at Dec 31
|
8,105
|
|
9,897
|
|
10,400
|
|
Total Daily VAR by Exposure Type at Dec 31
|
2018
|
2017
|
||||||||||
In millions
|
Year-end
|
Average
|
Year-end
|
Average
|
||||||||
Commodities
|
$
|
26
|
|
$
|
30
|
|
$
|
32
|
|
$
|
35
|
|
Equity securities
|
12
|
|
7
|
|
4
|
|
9
|
|
||||
Foreign exchange
|
26
|
|
28
|
|
26
|
|
38
|
|
||||
Interest rate
|
81
|
|
80
|
|
70
|
|
76
|
|
||||
Composite
|
$
|
145
|
|
$
|
145
|
|
$
|
132
|
|
$
|
158
|
|
/s/ DELOITTE & TOUCHE LLP
|
(In millions) For the years ended Dec 31,
|
2018
|
2017
|
2016
|
||||||
Net sales
|
$
|
60,278
|
|
$
|
55,508
|
|
$
|
48,158
|
|
Cost of sales
|
47,705
|
|
43,612
|
|
37,668
|
|
|||
Research and development expenses
|
1,536
|
|
1,648
|
|
1,593
|
|
|||
Selling, general and administrative expenses
|
2,846
|
|
2,920
|
|
2,953
|
|
|||
Amortization of intangibles
|
622
|
|
624
|
|
544
|
|
|||
Restructuring, goodwill impairment and asset related charges - net
|
620
|
|
3,100
|
|
595
|
|
|||
Integration and separation costs
|
1,044
|
|
786
|
|
349
|
|
|||
Asbestos-related charge
|
—
|
|
—
|
|
1,113
|
|
|||
Equity in earnings of nonconsolidated affiliates
|
950
|
|
762
|
|
442
|
|
|||
Sundry income (expense) - net
|
181
|
|
195
|
|
1,486
|
|
|||
Interest expense and amortization of debt discount
|
1,118
|
|
976
|
|
858
|
|
|||
Income before income taxes
|
5,918
|
|
2,799
|
|
4,413
|
|
|||
Provision for income taxes
|
1,285
|
|
2,204
|
|
9
|
|
|||
Net income
|
4,633
|
|
595
|
|
4,404
|
|
|||
Net income attributable to noncontrolling interests
|
134
|
|
129
|
|
86
|
|
|||
Net income attributable to The Dow Chemical Company
|
4,499
|
|
466
|
|
4,318
|
|
|||
Preferred stock dividends
|
—
|
|
—
|
|
340
|
|
|||
Net income available for The Dow Chemical Company common stockholder
|
$
|
4,499
|
|
$
|
466
|
|
$
|
3,978
|
|
(In millions) For the years ended Dec 31,
|
2018
|
2017
|
2016
|
||||||
Net income
|
$
|
4,633
|
|
$
|
595
|
|
$
|
4,404
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
||||||
Unrealized losses on investments
|
(67
|
)
|
(46
|
)
|
(4
|
)
|
|||
Cumulative translation adjustments
|
(225
|
)
|
900
|
|
(644
|
)
|
|||
Pension and other postretirement benefit plans
|
(40
|
)
|
391
|
|
(620
|
)
|
|||
Derivative instruments
|
75
|
|
(14
|
)
|
113
|
|
|||
Total other comprehensive income (loss)
|
(257
|
)
|
1,231
|
|
(1,155
|
)
|
|||
Comprehensive income
|
4,376
|
|
1,826
|
|
3,249
|
|
|||
Comprehensive income attributable to noncontrolling interests, net of tax
|
97
|
|
172
|
|
83
|
|
|||
Comprehensive income attributable to The Dow Chemical Company
|
$
|
4,279
|
|
$
|
1,654
|
|
$
|
3,166
|
|
(In millions, except share amounts) At Dec 31,
|
2018
|
2017
|
||||
Assets
|
|
|
||||
Current Assets
|
|
|
||||
Cash and cash equivalents (variable interest entities restricted - 2018: $82; 2017: $107)
|
$
|
2,669
|
|
$
|
6,188
|
|
Marketable securities
|
100
|
|
4
|
|
||
Accounts and notes receivable:
|
|
|
||||
Trade (net of allowance for doubtful receivables - 2018: $106; 2017: $117)
|
8,246
|
|
7,338
|
|
||
Other
|
4,136
|
|
4,711
|
|
||
Inventories
|
9,260
|
|
8,376
|
|
||
Other current assets
|
852
|
|
627
|
|
||
Total current assets
|
25,263
|
|
27,244
|
|
||
Investments
|
|
|
||||
Investment in nonconsolidated affiliates
|
3,823
|
|
3,742
|
|
||
Other investments (investments carried at fair value - 2018: $1,699; 2017: $1,512)
|
2,648
|
|
2,510
|
|
||
Noncurrent receivables
|
394
|
|
594
|
|
||
Total investments
|
6,865
|
|
6,846
|
|
||
Property
|
|
|
||||
Property
|
61,437
|
|
60,426
|
|
||
Less accumulated depreciation
|
37,775
|
|
36,614
|
|
||
Net property (variable interest entities restricted - 2018: $734; 2017: $907)
|
23,662
|
|
23,812
|
|
||
Other Assets
|
|
|
||||
Goodwill
|
13,848
|
|
13,938
|
|
||
Other intangible assets (net of accumulated amortization - 2018: $5,762; 2017: $5,161)
|
4,913
|
|
5,549
|
|
||
Deferred income tax assets
|
2,031
|
|
1,722
|
|
||
Deferred charges and other assets
|
796
|
|
829
|
|
||
Total other assets
|
21,588
|
|
22,038
|
|
||
Total Assets
|
$
|
77,378
|
|
$
|
79,940
|
|
Liabilities and Equity
|
|
|
||||
Current Liabilities
|
|
|
||||
Notes payable
|
$
|
305
|
|
$
|
484
|
|
Long-term debt due within one year
|
340
|
|
752
|
|
||
Accounts payable:
|
|
|
||||
Trade
|
5,378
|
|
5,360
|
|
||
Other
|
3,330
|
|
3,062
|
|
||
Income taxes payable
|
791
|
|
694
|
|
||
Accrued and other current liabilities
|
3,611
|
|
4,025
|
|
||
Total current liabilities
|
13,755
|
|
14,377
|
|
||
Long-Term Debt (variable interest entities nonrecourse - 2018: $75; 2017: $249)
|
19,254
|
|
19,765
|
|
||
Other Noncurrent Liabilities
|
|
|
||||
Deferred income tax liabilities
|
664
|
|
764
|
|
||
Pension and other postretirement benefits - noncurrent
|
9,226
|
|
10,794
|
|
||
Asbestos-related liabilities - noncurrent
|
1,142
|
|
1,237
|
|
||
Other noncurrent obligations
|
5,368
|
|
5,994
|
|
||
Total other noncurrent liabilities
|
16,400
|
|
18,789
|
|
||
Stockholders’ Equity
|
|
|
||||
Common stock (authorized and issued 100 shares of $0.01 par value each)
|
—
|
|
—
|
|
||
Additional paid-in capital
|
7,042
|
|
6,553
|
|
||
Retained earnings
|
29,808
|
|
28,050
|
|
||
Accumulated other comprehensive loss
|
(9,885
|
)
|
(8,591
|
)
|
||
Unearned ESOP shares
|
(134
|
)
|
(189
|
)
|
||
The Dow Chemical Company’s stockholders’ equity
|
26,831
|
|
25,823
|
|
||
Noncontrolling interests
|
1,138
|
|
1,186
|
|
||
Total equity
|
27,969
|
|
27,009
|
|
||
Total Liabilities and Equity
|
$
|
77,378
|
|
$
|
79,940
|
|
(In millions) For the years ended Dec 31,
|
2018
|
2017
|
2016
|
||||||
Operating Activities
|
|
|
|
||||||
Net income
|
$
|
4,633
|
|
$
|
595
|
|
$
|
4,404
|
|
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
|
|
|
|
||||||
Depreciation and amortization
|
3,329
|
|
3,155
|
|
2,862
|
|
|||
Provision (Credit) for deferred income tax
|
(530
|
)
|
933
|
|
(1,259
|
)
|
|||
Earnings of nonconsolidated affiliates less than (in excess of) dividends received
|
(42
|
)
|
95
|
|
243
|
|
|||
Net periodic pension benefit cost
|
380
|
|
1,137
|
|
389
|
|
|||
Pension contributions
|
(1,656
|
)
|
(1,676
|
)
|
(629
|
)
|
|||
Net gain on sales of assets, businesses and investments
|
(67
|
)
|
(1,156
|
)
|
(214
|
)
|
|||
Net (gain) loss on step acquisition of nonconsolidated affiliate
|
47
|
|
—
|
|
(2,445
|
)
|
|||
Restructuring, goodwill impairment and asset related charges - net
|
620
|
|
3,100
|
|
595
|
|
|||
Asbestos-related charge
|
—
|
|
—
|
|
1,113
|
|
|||
Other net loss
|
426
|
|
378
|
|
361
|
|
|||
Changes in assets and liabilities, net of effects of acquired and divested companies:
|
|
|
|
||||||
Accounts and notes receivable
|
(1,532
|
)
|
(11,927
|
)
|
(8,833
|
)
|
|||
Inventories
|
(983
|
)
|
(1,225
|
)
|
610
|
|
|||
Accounts payable
|
359
|
|
1,735
|
|
569
|
|
|||
Other assets and liabilities, net
|
(1,090
|
)
|
(102
|
)
|
(723
|
)
|
|||
Cash provided by (used for) operating activities
|
3,894
|
|
(4,958
|
)
|
(2,957
|
)
|
|||
Investing Activities
|
|
|
|
||||||
Capital expenditures
|
(2,538
|
)
|
(3,144
|
)
|
(3,804
|
)
|
|||
Investment in gas field developments
|
(114
|
)
|
(121
|
)
|
(113
|
)
|
|||
Purchases of previously leased assets
|
(26
|
)
|
(187
|
)
|
—
|
|
|||
Proceeds from sales of property and businesses, net of cash divested
|
155
|
|
1,691
|
|
284
|
|
|||
Acquisitions of property and businesses, net of cash acquired
|
(20
|
)
|
47
|
|
(187
|
)
|
|||
Cash acquired in step acquisition of nonconsolidated affiliate
|
—
|
|
—
|
|
1,070
|
|
|||
Investments in and loans to nonconsolidated affiliates
|
(18
|
)
|
(749
|
)
|
(1,020
|
)
|
|||
Distributions and loan repayments from nonconsolidated affiliates
|
55
|
|
69
|
|
109
|
|
|||
Proceeds from sales of ownership interests in nonconsolidated affiliates
|
4
|
|
64
|
|
22
|
|
|||
Purchases of investments
|
(1,530
|
)
|
(643
|
)
|
(577
|
)
|
|||
Proceeds from sales and maturities of investments
|
1,216
|
|
1,163
|
|
733
|
|
|||
Proceeds from interests in trade accounts receivable conduits
|
657
|
|
9,462
|
|
8,551
|
|
|||
Other investing activities, net
|
31
|
|
(100
|
)
|
24
|
|
|||
Cash provided by (used for) investing activities
|
(2,128
|
)
|
7,552
|
|
5,092
|
|
|||
Financing Activities
|
|
|
|
||||||
Changes in short-term notes payable
|
(176
|
)
|
293
|
|
(33
|
)
|
|||
Proceeds from issuance of long-term debt
|
2,000
|
|
—
|
|
32
|
|
|||
Payments on long-term debt
|
(3,058
|
)
|
(621
|
)
|
(588
|
)
|
|||
Purchases of treasury stock
|
—
|
|
—
|
|
(916
|
)
|
|||
Proceeds from issuance of parent company stock
|
112
|
|
66
|
|
—
|
|
|||
Proceeds from sales of common stock
|
—
|
|
423
|
|
398
|
|
|||
Employee taxes paid for share-based payment arrangements
|
(92
|
)
|
(93
|
)
|
(65
|
)
|
|||
Distributions to noncontrolling interests
|
(172
|
)
|
(129
|
)
|
(176
|
)
|
|||
Purchases of noncontrolling interests
|
—
|
|
—
|
|
(202
|
)
|
|||
Dividends paid to stockholders
|
—
|
|
(2,179
|
)
|
(2,462
|
)
|
|||
Dividends paid to parent
|
(3,711
|
)
|
(1,056
|
)
|
—
|
|
|||
Other financing activities, net
|
(67
|
)
|
(35
|
)
|
(2
|
)
|
|||
Cash used for financing activities
|
(5,164
|
)
|
(3,331
|
)
|
(4,014
|
)
|
|||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(100
|
)
|
320
|
|
(77
|
)
|
|||
Summary
|
|
|
|
||||||
Decrease in cash, cash equivalents and restricted cash
|
(3,498
|
)
|
(417
|
)
|
(1,956
|
)
|
|||
Cash, cash equivalents and restricted cash at beginning of year
|
6,207
|
|
6,624
|
|
8,580
|
|
|||
Cash, cash equivalents and restricted cash at end of year
|
$
|
2,709
|
|
$
|
6,207
|
|
$
|
6,624
|
|
Less: Restricted cash and cash equivalents, included in "Other current assets"
|
40
|
|
19
|
|
17
|
|
|||
Cash and cash equivalents at end of year
|
$
|
2,669
|
|
$
|
6,188
|
|
$
|
6,607
|
|
Supplemental cash flow information
|
|
|
|
||||||
Cash paid during year for:
|
|
|
|
||||||
Interest, net of amounts capitalized
|
$
|
1,198
|
|
$
|
1,178
|
|
$
|
1,192
|
|
Income taxes
|
$
|
1,419
|
|
$
|
1,805
|
|
$
|
1,592
|
|
(In millions)
|
Preferred Stock
|
Common Stock
|
Add'l Paid in Capital
|
Retained Earnings
|
Accum Other Comp Loss
|
Unearned ESOP
|
Treasury Stock
|
Non-controlling Interests
|
Total Equity
|
||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at Jan 1, 2016
|
$
|
4,000
|
|
$
|
3,107
|
|
$
|
4,936
|
|
$
|
28,425
|
|
$
|
(8,667
|
)
|
$
|
(272
|
)
|
$
|
(6,155
|
)
|
$
|
809
|
|
$
|
26,183
|
|
Net income available for The Dow Chemical Company common stockholders
|
—
|
|
—
|
|
—
|
|
3,978
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3,978
|
|
|||||||||
Other comprehensive loss
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,155
|
)
|
—
|
|
—
|
|
—
|
|
(1,155
|
)
|
|||||||||
Dividends to stockholders
|
—
|
|
—
|
|
—
|
|
(2,037
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(2,037
|
)
|
|||||||||
Common stock issued/sold
|
—
|
|
—
|
|
398
|
|
—
|
|
—
|
|
—
|
|
717
|
|
—
|
|
1,115
|
|
|||||||||
Stock-based compensation and allocation of ESOP shares
|
—
|
|
—
|
|
(376
|
)
|
—
|
|
—
|
|
51
|
|
—
|
|
—
|
|
(325
|
)
|
|||||||||
ESOP shares acquired
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(18
|
)
|
—
|
|
—
|
|
(18
|
)
|
|||||||||
Impact of noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
433
|
|
433
|
|
|||||||||
Treasury stock purchases
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(916
|
)
|
—
|
|
(916
|
)
|
|||||||||
Preferred stock converted to common stock
|
(4,000
|
)
|
—
|
|
(695
|
)
|
—
|
|
—
|
|
—
|
|
4,695
|
|
—
|
|
—
|
|
|||||||||
Other
|
—
|
|
—
|
|
(1
|
)
|
(28
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(29
|
)
|
|||||||||
Balance at Dec 31, 2016
|
$
|
—
|
|
$
|
3,107
|
|
$
|
4,262
|
|
$
|
30,338
|
|
$
|
(9,822
|
)
|
$
|
(239
|
)
|
$
|
(1,659
|
)
|
$
|
1,242
|
|
$
|
27,229
|
|
2017
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net income available for The Dow Chemical Company common stockholder
|
—
|
|
—
|
|
—
|
|
466
|
|
—
|
|
—
|
|
—
|
|
—
|
|
466
|
|
|||||||||
Other comprehensive income
|
—
|
|
—
|
|
—
|
|
—
|
|
1,231
|
|
—
|
|
—
|
|
—
|
|
1,231
|
|
|||||||||
Dividends to stockholders
|
—
|
|
—
|
|
—
|
|
(1,673
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,673
|
)
|
|||||||||
Dividends to parent
|
—
|
|
—
|
|
—
|
|
(1,056
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,056
|
)
|
|||||||||
Common stock issued/sold
|
—
|
|
—
|
|
423
|
|
—
|
|
—
|
|
—
|
|
724
|
|
—
|
|
1,147
|
|
|||||||||
Issuance of parent company stock
|
—
|
|
—
|
|
66
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
66
|
|
|||||||||
Stock-based compensation and allocation of ESOP shares
|
—
|
|
—
|
|
(368
|
)
|
—
|
|
—
|
|
50
|
|
—
|
|
—
|
|
(318
|
)
|
|||||||||
Impact of noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(56
|
)
|
(56
|
)
|
|||||||||
Merger impact
|
—
|
|
(3,107
|
)
|
2,172
|
|
—
|
|
—
|
|
—
|
|
935
|
|
—
|
|
—
|
|
|||||||||
Other
|
—
|
|
—
|
|
(2
|
)
|
(25
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(27
|
)
|
|||||||||
Balance at Dec 31, 2017
|
$
|
—
|
|
$
|
—
|
|
$
|
6,553
|
|
$
|
28,050
|
|
$
|
(8,591
|
)
|
$
|
(189
|
)
|
$
|
—
|
|
$
|
1,186
|
|
$
|
27,009
|
|
2018
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Adoption of accounting standards (Note 1)
|
—
|
|
—
|
|
—
|
|
989
|
|
(1,037
|
)
|
—
|
|
—
|
|
—
|
|
(48
|
)
|
|||||||||
Net income available for The Dow Chemical Company common stockholder
|
—
|
|
—
|
|
—
|
|
4,499
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4,499
|
|
|||||||||
Other comprehensive loss
|
—
|
|
—
|
|
—
|
|
—
|
|
(257
|
)
|
—
|
|
—
|
|
—
|
|
(257
|
)
|
|||||||||
Dividends to parent
|
—
|
|
—
|
|
—
|
|
(3,711
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(3,711
|
)
|
|||||||||
Issuance of parent company stock
|
—
|
|
—
|
|
112
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
112
|
|
|||||||||
Stock-based compensation and allocation of ESOP shares
|
—
|
|
—
|
|
377
|
|
—
|
|
—
|
|
55
|
|
—
|
|
—
|
|
432
|
|
|||||||||
Impact of noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(48
|
)
|
(48
|
)
|
|||||||||
Other
|
—
|
|
—
|
|
—
|
|
(19
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(19
|
)
|
|||||||||
Balance at Dec 31, 2018
|
$
|
—
|
|
$
|
—
|
|
$
|
7,042
|
|
$
|
29,808
|
|
$
|
(9,885
|
)
|
$
|
(134
|
)
|
$
|
—
|
|
$
|
1,138
|
|
$
|
27,969
|
|
Note
|
|
Page
|
1
|
||
2
|
||
3
|
||
4
|
||
5
|
||
6
|
||
7
|
||
8
|
||
9
|
||
10
|
||
11
|
||
12
|
||
13
|
||
14
|
||
15
|
||
16
|
||
17
|
||
18
|
||
19
|
||
20
|
||
21
|
||
22
|
||
23
|
||
24
|
||
25
|
||
26
|
Summary of Changes to the Consolidated Statements of Income
|
2017
|
2016
|
||||||||||
In millions
|
As Filed
|
Updated
1
|
As Filed
|
Updated
1
|
||||||||
Cost of sales
|
$
|
44,308
|
|
$
|
43,612
|
|
$
|
37,640
|
|
$
|
37,668
|
|
Research and development expenses
|
$
|
1,637
|
|
$
|
1,648
|
|
$
|
1,584
|
|
$
|
1,593
|
|
Selling, general and administrative expenses
|
$
|
2,917
|
|
$
|
2,920
|
|
$
|
2,956
|
|
$
|
2,953
|
|
Sundry income (expense) - net
|
$
|
877
|
|
$
|
195
|
|
$
|
1,452
|
|
$
|
1,486
|
|
1.
|
Reflects changes resulting from the adoption of ASU 2017-07. See Note
2
for additional information.
|
Summary of Changes to the Consolidated Statements of Cash Flows
|
2017
|
2016
|
||||||||||
In millions
|
As Filed
|
Updated
1
|
As Filed
|
Updated
1
|
||||||||
Operating Activities
|
|
|
|
|
||||||||
Accounts and notes receivable
|
$
|
(4,734
|
)
|
$
|
(11,927
|
)
|
$
|
(1,539
|
)
|
$
|
(8,833
|
)
|
Proceeds from interests in trade accounts receivable conduits
|
$
|
2,269
|
|
$
|
—
|
|
$
|
1,257
|
|
$
|
—
|
|
Other assets and liabilities, net
|
$
|
(104
|
)
|
$
|
(102
|
)
|
$
|
(717
|
)
|
$
|
(723
|
)
|
Cash provided by (used for) operating activities
|
$
|
4,502
|
|
$
|
(4,958
|
)
|
$
|
5,600
|
|
$
|
(2,957
|
)
|
Investing Activities
|
|
|
|
|
||||||||
Payment into escrow account
|
$
|
(130
|
)
|
$
|
—
|
|
$
|
(835
|
)
|
$
|
—
|
|
Distribution from escrow account
|
$
|
130
|
|
$
|
—
|
|
$
|
835
|
|
$
|
—
|
|
Acquisitions of property and businesses, net of cash acquired
|
$
|
16
|
|
$
|
47
|
|
$
|
(187
|
)
|
$
|
(187
|
)
|
Cash acquired in step acquisition of nonconsolidated affiliate
|
$
|
—
|
|
$
|
—
|
|
$
|
1,050
|
|
$
|
1,070
|
|
Proceeds from interests in trade accounts receivable conduits
|
$
|
—
|
|
$
|
9,462
|
|
$
|
—
|
|
$
|
8,551
|
|
Cash provided by (used for) investing activities
|
$
|
(1,941
|
)
|
$
|
7,552
|
|
$
|
(3,479
|
)
|
$
|
5,092
|
|
Financing Activities
|
|
|
|
|
||||||||
Other financing activities, net
|
$
|
(4
|
)
|
$
|
(35
|
)
|
$
|
(2
|
)
|
$
|
(2
|
)
|
Cash used for financing activities
|
$
|
(3,300
|
)
|
$
|
(3,331
|
)
|
$
|
(4,014
|
)
|
$
|
(4,014
|
)
|
Summary
|
|
|
|
|
||||||||
Decrease in cash, cash equivalents and restricted cash
|
$
|
(419
|
)
|
$
|
(417
|
)
|
$
|
(1,970
|
)
|
$
|
(1,956
|
)
|
Cash, cash equivalents and restricted cash at beginning of period
|
$
|
6,607
|
|
$
|
6,624
|
|
$
|
8,577
|
|
$
|
8,580
|
|
Cash, cash equivalents and restricted cash at end of period
|
$
|
6,188
|
|
$
|
6,207
|
|
$
|
6,607
|
|
$
|
6,624
|
|
1.
|
Reflects the adoption of ASU 2016-15 and ASU 2016-18. In connection with the review and implementation of ASU 2016-15, the Company also changed the value of “Proceeds from interests in trade accounts receivable conduits” due to additional interpretive guidance of the required method for calculating the cash received from beneficial interests in the conduits, including additional guidance from the SEC's Office of the Chief Accountant issued in the third quarter of 2018.
|
Summary of Impacts to the Consolidated Balance Sheet
|
Dec 31, 2017
|
Adjustments due to:
|
Jan 1, 2018
|
||||||||||||
In millions
|
As Filed
|
Topic 606
|
ASU 2016-01
|
ASU 2016-16
|
Updated
|
||||||||||
Assets
|
|
|
|
|
|
||||||||||
Inventories
|
$
|
8,376
|
|
$
|
(11
|
)
|
$
|
—
|
|
$
|
—
|
|
$
|
8,365
|
|
Other current assets
|
$
|
627
|
|
$
|
29
|
|
$
|
—
|
|
$
|
31
|
|
$
|
687
|
|
Total current assets
|
$
|
27,244
|
|
$
|
18
|
|
$
|
—
|
|
$
|
31
|
|
$
|
27,293
|
|
Deferred income tax assets
|
$
|
1,722
|
|
$
|
25
|
|
$
|
—
|
|
$
|
10
|
|
$
|
1,757
|
|
Deferred charges and other assets
|
$
|
829
|
|
$
|
43
|
|
$
|
—
|
|
$
|
—
|
|
$
|
872
|
|
Total other assets
|
$
|
22,038
|
|
$
|
68
|
|
$
|
—
|
|
$
|
10
|
|
$
|
22,116
|
|
Total Assets
|
$
|
79,940
|
|
$
|
86
|
|
$
|
—
|
|
$
|
41
|
|
$
|
80,067
|
|
Liabilities
|
|
|
|
|
|
||||||||||
Accounts payable - Other
|
$
|
3,062
|
|
$
|
10
|
|
$
|
—
|
|
$
|
—
|
|
$
|
3,072
|
|
Income taxes payable
|
$
|
694
|
|
$
|
(2
|
)
|
$
|
—
|
|
$
|
—
|
|
$
|
692
|
|
Accrued and other current liabilities
|
$
|
4,025
|
|
$
|
50
|
|
$
|
—
|
|
$
|
—
|
|
$
|
4,075
|
|
Total current liabilities
|
$
|
14,377
|
|
$
|
58
|
|
$
|
—
|
|
$
|
—
|
|
$
|
14,435
|
|
Other noncurrent obligations
|
$
|
5,994
|
|
$
|
117
|
|
$
|
—
|
|
$
|
—
|
|
$
|
6,111
|
|
Total other noncurrent liabilities
|
$
|
18,789
|
|
$
|
117
|
|
$
|
—
|
|
$
|
—
|
|
$
|
18,906
|
|
Stockholders' Equity
|
|
|
|
|
|
||||||||||
Retained earnings
|
$
|
28,050
|
|
$
|
(89
|
)
|
$
|
(20
|
)
|
$
|
41
|
|
$
|
27,982
|
|
Accumulated other comprehensive loss
|
$
|
(8,591
|
)
|
$
|
—
|
|
$
|
20
|
|
$
|
—
|
|
$
|
(8,571
|
)
|
The Dow Chemical Company's stockholders' equity
|
$
|
25,823
|
|
$
|
(89
|
)
|
$
|
—
|
|
$
|
41
|
|
$
|
25,775
|
|
Total equity
|
$
|
27,009
|
|
$
|
(89
|
)
|
$
|
—
|
|
$
|
41
|
|
$
|
26,961
|
|
Total Liabilities and Equity
|
$
|
79,940
|
|
$
|
86
|
|
$
|
—
|
|
$
|
41
|
|
$
|
80,067
|
|
Summary of Impacts to the Consolidated Balance Sheets
|
As Reported at Dec 31, 2018
|
Adjustments
|
Balance at Dec 31, 2018 Excluding Adoption of Topic 606
|
||||||
In millions
|
|||||||||
Assets
|
|
|
|
||||||
Inventories
|
$
|
9,260
|
|
$
|
6
|
|
$
|
9,266
|
|
Other current assets
|
$
|
852
|
|
$
|
(16
|
)
|
$
|
836
|
|
Total current assets
|
$
|
25,263
|
|
$
|
(10
|
)
|
$
|
25,253
|
|
Deferred income tax assets
|
$
|
2,031
|
|
$
|
(26
|
)
|
$
|
2,005
|
|
Deferred charges and other assets
|
$
|
796
|
|
$
|
(43
|
)
|
$
|
753
|
|
Total other assets
|
$
|
21,588
|
|
$
|
(69
|
)
|
$
|
21,519
|
|
Total Assets
|
$
|
77,378
|
|
$
|
(79
|
)
|
$
|
77,299
|
|
Liabilities
|
|
|
|
||||||
Accounts payable - Other
|
$
|
3,330
|
|
$
|
(10
|
)
|
$
|
3,320
|
|
Income taxes payable
|
$
|
791
|
|
$
|
2
|
|
$
|
793
|
|
Accrued and other current liabilities
|
$
|
3,611
|
|
$
|
(15
|
)
|
$
|
3,596
|
|
Total current liabilities
|
$
|
13,755
|
|
$
|
(23
|
)
|
$
|
13,732
|
|
Other noncurrent obligations
|
$
|
5,368
|
|
$
|
(140
|
)
|
$
|
5,228
|
|
Total other noncurrent liabilities
|
$
|
16,400
|
|
$
|
(140
|
)
|
$
|
16,260
|
|
Stockholders' Equity
|
|
|
|
||||||
Retained earnings
|
$
|
29,808
|
|
$
|
84
|
|
$
|
29,892
|
|
The Dow Chemical Company's stockholders' equity
|
$
|
26,831
|
|
$
|
84
|
|
$
|
26,915
|
|
Total equity
|
$
|
27,969
|
|
$
|
84
|
|
$
|
28,053
|
|
Total Liabilities and Equity
|
$
|
77,378
|
|
$
|
(79
|
)
|
$
|
77,299
|
|
•
|
Dow divested its global Ethylene Acrylic Acid copolymers and ionomers business ("EAA Business") to SK Global Chemical Co., Ltd., on September 1, 2017, as part of a divestiture commitment given to the European Commission ("EC") in connection with the EC's conditional approval of the Merger granted on March 27, 2017. See Note
6
for additional information on this transaction.
|
•
|
DuPont divested its Cereal Broadleaf Herbicides and Chewing Insecticides portfolios as well as its Crop Protection research and development ("R&D") pipeline and organization (excluding seed treatment, nematicides, late-stage R&D programs and certain personnel needed to support marketed products and R&D programs that will remain with DuPont) (collectively, the "DuPont Divested Assets") to FMC Corporation ("FMC") on November 1, 2017, as part of the EC's conditional approval granted on March 27, 2017. Also on November 1, 2017, DuPont completed its acquisition of FMC's Health and Nutrition business, excluding its Omega-3 products.
|
•
|
On May 2, 2017, Dow and DuPont announced that China's Ministry of Commerce ("MOFCOM") granted conditional regulatory approval for the companies' proposed merger of equals which included commitments already made to the EC including DuPont's divestiture of the DuPont Divested Assets and Dow's divestiture of the EAA Business. In addition, Dow and DuPont made commitments related to the supply and distribution in China of certain herbicide and insecticide ingredients and formulations for rice crops for five years after the closing of the Merger.
|
•
|
Dow divested a select portion of Dow AgroSciences' corn seed business in Brazil ("DAS Divested Ag Business") to CITIC Agri Fund on November 30, 2017. The divestiture was part of the commitment given to Brazil's Administrative Council for Economic Defense ("CADE") in connection with the CADE's conditional approval of the Merger granted on May 17, 2017, which was incremental to commitments already made to the EC, China and regulatory agencies in other jurisdictions. See Note
6
for additional information on this transaction.
|
•
|
On June 15, 2017, Dow and DuPont announced that a proposed agreement had been reached with the Antitrust Division of the United States Department of Justice that permitted the companies to proceed with the proposed merger of equals transaction. The proposed agreement was consistent with commitments already made to the EC.
|
Contract Balances
|
Dec 31, 2018
|
Topic 606 Adjustments Jan 1, 2018
|
Dec 31, 2017
|
||||||
In millions
|
|||||||||
Accounts and notes receivable - Trade
|
$
|
8,246
|
|
$
|
—
|
|
$
|
7,338
|
|
Contract assets - current
1
|
$
|
37
|
|
$
|
18
|
|
$
|
—
|
|
Contract assets - noncurrent
2
|
$
|
47
|
|
$
|
43
|
|
$
|
—
|
|
Contract liabilities - current
3
|
$
|
165
|
|
$
|
50
|
|
$
|
117
|
|
Contract liabilities - noncurrent
4
|
$
|
1,390
|
|
$
|
117
|
|
$
|
1,365
|
|
DowDuPont Agriculture Division Program
|
Severance and Related Benefit Costs
|
Asset Write-downs and Write-offs
|
Total
|
||||||
In millions
|
|||||||||
2018 restructuring charges
|
$
|
24
|
|
$
|
1
|
|
$
|
25
|
|
Charges against the reserve
|
—
|
|
(1
|
)
|
(1
|
)
|
|||
Cash payments
|
(1
|
)
|
—
|
|
(1
|
)
|
|||
Reserve balance at Dec 31, 2018
|
$
|
23
|
|
$
|
—
|
|
$
|
23
|
|
DowDuPont Synergy Program
|
Severance and Related Benefit Costs
|
Asset Write-downs and Write-offs
|
Costs Associated with Exit and Disposal Activities
|
Total
|
||||||||
In millions
|
||||||||||||
2017 restructuring charges
|
$
|
357
|
|
$
|
287
|
|
$
|
43
|
|
$
|
687
|
|
Charges against the reserve
|
—
|
|
(287
|
)
|
—
|
|
(287
|
)
|
||||
Cash payments
|
(51
|
)
|
—
|
|
—
|
|
(51
|
)
|
||||
Reserve balance at Dec 31, 2017
|
$
|
306
|
|
$
|
—
|
|
$
|
43
|
|
$
|
349
|
|
2018 restructuring charges
|
204
|
|
226
|
|
121
|
|
551
|
|
||||
Charges against the reserve
|
—
|
|
(226
|
)
|
—
|
|
(226
|
)
|
||||
Cash payments
|
(248
|
)
|
—
|
|
(99
|
)
|
(347
|
)
|
||||
Reserve balance at Dec 31, 2018
|
$
|
262
|
|
$
|
—
|
|
$
|
65
|
|
$
|
327
|
|
•
|
The Company will close or consolidate several manufacturing, R&D and administrative facilities around the world aligned with seed and crop protection activities, including the write-down of other non-manufacturing assets. As a result, the Company recorded a charge of
$94 million
. These facilities will be shut down or consolidated by the end of 2019.
|
•
|
The Company recorded a charge of
$83 million
for asset write-downs and write-offs aligned with electronics and imaging product lines, including the shutdown of a metalorganic manufacturing facility in Cheonan, South Korea, the write-off of in-process research and development and other intangible assets, and the consolidation of certain R&D facilities. The South Korean facility was shut down in the second quarter of 2018.
|
•
|
The Company recorded a charge of
$22 million
for asset write-downs and write-offs aligned with an energy project, including the write-off of capital projects and other non-manufacturing assets.
|
•
|
The Company wrote-off
$21 million
of assets aligned with safety and construction products, including intangible assets as a result of the Clean Filtration Technologies plant shutdown in the fourth quarter of 2017.
|
•
|
The Company recorded a charge of
$67 million
for other miscellaneous asset write-downs and write-offs, including the shutdown of several small manufacturing facilities and the write-off of non-manufacturing assets, certain corporate facilities and data centers. These manufacturing facilities will be shut down primarily by the end of 2019.
|
•
|
The Company recorded a charge of
$171 million
related primarily to the consolidation or shutdown of manufacturing, R&D and other non-manufacturing facilities and the write-down of inventory aligned with seed and crop protection activities. These facilities will be shut down primarily by the end of the third quarter of 2019.
|
•
|
The Company recorded a charge of
$27 million
for asset write-downs and write-offs aligned with industrial biosciences product lines, including the shutdown of a microbial control manufacturing facility. The manufacturing facility will be shut down by the end of 2019.
|
•
|
The Company recorded a charge of
$28 million
for other miscellaneous asset write-downs and write-offs, including the shutdown of several small manufacturing facilities and the write-off of non-manufacturing assets and certain corporate facilities. These manufacturing facilities will be shut down by the end of the third quarter of 2019.
|
2016 Restructuring Charges
|
Severance and Related Benefit Costs
|
Asset Write-downs and Write-offs
|
Costs Associated with Exit and Disposal Activities
|
Total
|
||||||||
In millions
|
||||||||||||
2016 restructuring charges
|
$
|
268
|
|
$
|
153
|
|
$
|
28
|
|
$
|
449
|
|
Charges against the reserve
|
—
|
|
(153
|
)
|
—
|
|
(153
|
)
|
||||
Cash payments
|
(67
|
)
|
—
|
|
(1
|
)
|
(68
|
)
|
||||
Reserve balance at Dec 31, 2016
|
$
|
201
|
|
$
|
—
|
|
$
|
27
|
|
$
|
228
|
|
Adjustments to the reserve
1
|
—
|
|
—
|
|
(7
|
)
|
(7
|
)
|
||||
Cash payments
|
(150
|
)
|
—
|
|
(3
|
)
|
(153
|
)
|
||||
Reserve balance at Dec 31, 2017
|
$
|
51
|
|
$
|
—
|
|
$
|
17
|
|
$
|
68
|
|
Adjustments to the reserve
1
|
(8
|
)
|
—
|
|
14
|
|
6
|
|
||||
Cash payments
|
(37
|
)
|
—
|
|
(4
|
)
|
(41
|
)
|
||||
Reserve balance at Jun 30, 2018
|
$
|
6
|
|
$
|
—
|
|
$
|
27
|
|
$
|
33
|
|
1.
|
Included in "Restructuring, goodwill impairment and asset related charges - net" in the consolidated statements of income.
|
•
|
The Company recorded a charge of
$70 million
for asset write-downs and write-offs including the shutdown of a solar manufacturing facility in Midland, Michigan; the write-down of a solar facility in Milpitas, California; and, the write-off of capital projects and in-process research and development. The Midland facility was shut down in the third quarter of 2016.
|
•
|
To enhance competitiveness and streamline costs associated with the ownership restructure of Dow Silicones, a silicones manufacturing facility in Yamakita, Japan, was shut down in the fourth quarter of 2018. In addition, an idled facility was shut down in the second quarter of 2016. As a result, the Company recorded a charge of
$25 million
.
|
•
|
The Company recorded a charge of
$25 million
to close and/or consolidate certain corporate facilities and data centers.
|
•
|
A decision was made to shut down a small manufacturing facility and to write-down other non-manufacturing assets, including a cost method investment and certain aircraft. As a result, the Company recorded a charge of
$33 million
. The manufacturing facility was shut down in the second quarter of 2016.
|
Sundry Income (Expense) – Net
|
|
|
|
||||||
In millions
|
2018
|
2017
|
2016
|
||||||
Non-operating pension and other postretirement benefit plan net credits (costs)
1
|
$
|
119
|
|
$
|
(682
|
)
|
$
|
34
|
|
Gain on sales of other assets and investments
|
59
|
|
182
|
|
170
|
|
|||
Interest income
|
109
|
|
106
|
|
107
|
|
|||
Foreign exchange losses
|
(119
|
)
|
(72
|
)
|
(126
|
)
|
|||
Post-closing adjustments on divestiture of MEGlobal
|
20
|
|
—
|
|
(1
|
)
|
|||
Gain and post-closing adjustments related to Dow Silicones ownership restructure
2
|
(47
|
)
|
—
|
|
2,445
|
|
|||
Loss on early extinguishment of debt
3
|
(54
|
)
|
—
|
|
—
|
|
|||
Loss on divestitures
|
(14
|
)
|
—
|
|
(25
|
)
|
|||
Gain on divestiture of DAS Divested Ag Business
4
|
—
|
|
635
|
|
—
|
|
|||
Gain on divestiture of the EAA Business
4
|
—
|
|
227
|
|
—
|
|
|||
Gain related to Nova patent infringement award
5
|
—
|
|
137
|
|
—
|
|
|||
Loss related to Bayer CropScience arbitration matter
5
|
—
|
|
(469
|
)
|
—
|
|
|||
Impact of split-off of chlorine value chain
|
—
|
|
7
|
|
6
|
|
|||
Settlement of the urethane matters class action lawsuit and opt-out cases
5
|
—
|
|
—
|
|
(1,235
|
)
|
|||
Costs associated with transactions and productivity actions
|
—
|
|
—
|
|
(41
|
)
|
|||
Implant liability adjustment
5
|
—
|
|
—
|
|
27
|
|
|||
Reclassification of cumulative translation adjustments
|
4
|
|
8
|
|
—
|
|
|||
Other - net
|
104
|
|
116
|
|
125
|
|
|||
Total sundry income (expense) – net
|
$
|
181
|
|
$
|
195
|
|
$
|
1,486
|
|
1.
|
Presented in accordance with ASU 2017-07. See Notes
1
,
2
and
19
for additional information.
|
2.
|
See Note
5
for additional information.
|
3.
|
See Note
15
for additional information.
|
4.
|
See Note
6
for additional information.
|
5.
|
See Note
16
for additional information.
|
•
|
As a result of The Act, the Company remeasured its U.S. federal deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21 percent. The Company recorded a cumulative benefit of
$29 million
(
$79 million
benefit in 2018 and
$50 million
charge in 2017) to “Provision for income taxes” in the consolidated statements of income with respect to the remeasurement of the Company's deferred tax balances.
|
•
|
The Act requires a mandatory deemed repatriation of post-1986 undistributed foreign earnings and profits, which results in a one-time transition tax. The Company recorded a cumulative charge of
$780 million
(
$85 million
benefit in 2018 and
$865 million
charge in 2017) to "Provision for income taxes" in the consolidated statements of income with respect to the one-time transition tax.
|
•
|
In 2018, the Company recorded an indirect impact of The Act related to prepaid tax on the intercompany sale of inventory. The amount recorded related to inventory was a charge of
$38 million
to "Provision for income taxes" in the consolidated statements of income.
|
•
|
For tax years beginning after December 31, 2017, The Act introduced new provisions for U.S. taxation of certain global intangible low-taxed income (“GILTI”). The Company has made the policy election to record any liability associated with GILTI in the period in which it is incurred.
|
Geographic Allocation of Income and Provision for Income Taxes
|
|
|
|
||||||
In millions
|
2018
|
2017
|
2016
|
||||||
Income (Loss) before income taxes
|
|
|
|
||||||
Domestic
1, 2
|
$
|
1,668
|
|
$
|
(1,973
|
)
|
$
|
485
|
|
Foreign
1
|
4,250
|
|
4,772
|
|
3,928
|
|
|||
Income before income taxes
|
$
|
5,918
|
|
$
|
2,799
|
|
$
|
4,413
|
|
Current tax expense (benefit)
|
|
|
|
||||||
Federal
|
$
|
290
|
|
$
|
(308
|
)
|
$
|
91
|
|
State and local
|
8
|
|
—
|
|
21
|
|
|||
Foreign
|
1,517
|
|
1,579
|
|
1,156
|
|
|||
Total current tax expense
|
$
|
1,815
|
|
$
|
1,271
|
|
$
|
1,268
|
|
Deferred tax expense (benefit)
|
|
|
|
||||||
Federal
3
|
$
|
(323
|
)
|
$
|
1,027
|
|
$
|
(1,255
|
)
|
State and local
|
(7
|
)
|
56
|
|
(10
|
)
|
|||
Foreign
|
(200
|
)
|
(150
|
)
|
6
|
|
|||
Total deferred tax expense (benefit)
|
$
|
(530
|
)
|
$
|
933
|
|
$
|
(1,259
|
)
|
Provision for income taxes
|
$
|
1,285
|
|
$
|
2,204
|
|
$
|
9
|
|
Net income
|
$
|
4,633
|
|
$
|
595
|
|
$
|
4,404
|
|
1.
|
In 2017, the domestic component of "Income before income taxes" included approximately
$308 million
(
$2.1 billion
in 2016) and the foreign component contained
$562 million
(
zero
in 2016) of income from portfolio actions. See Notes
5
and
6
for additional information.
|
2.
|
In 2017, the domestic component of "Income before income taxes" included approximately
$2.7 billion
of expense related to a goodwill impairment, non-qualified pension plan change in control charges and litigation settlements. In 2016, the domestic component of "Income before income taxes" included approximately
$2.6 billion
of expenses related to the urethane matters class action lawsuit and opt-out cases settlements, asbestos-related charge and charges for environmental matters. See Notes
13
,
16
and
19
for additional information.
|
3.
|
The 2018 and 2017 amounts reflect the tax impact of The Act which accelerated the utilization of tax credits and required remeasurement of all U.S. deferred tax assets and liabilities. The 2016 amount reflects the tax impact of accrued one-time items and reduced domestic income which limited the utilization of tax credits.
|
Reconciliation to U.S. Statutory Rate
|
2018
|
2017
|
2016
|
|||
Statutory U.S. federal income tax rate
|
21.0
|
%
|
35.0
|
%
|
35.0
|
%
|
Equity earnings effect
|
(2.1
|
)
|
(4.2
|
)
|
(1.2
|
)
|
Foreign income taxed at rates other than the statutory U.S. federal income tax rate
1
|
5.2
|
|
(15.9
|
)
|
(7.0
|
)
|
U.S. tax effect of foreign earnings and dividends
|
(0.5
|
)
|
(1.6
|
)
|
(4.6
|
)
|
Unrecognized tax benefits
|
0.1
|
|
1.1
|
|
(0.8
|
)
|
Acquisitions, divestitures and ownership restructuring activities
2
|
0.3
|
|
11.7
|
|
(21.2
|
)
|
Impact of U.S. tax reform
|
(2.1
|
)
|
32.7
|
|
—
|
|
State and local income taxes
|
0.4
|
|
3.2
|
|
0.2
|
|
Goodwill impairment
|
—
|
|
19.2
|
|
—
|
|
Excess tax benefits from stock-based compensation
3
|
(0.9
|
)
|
(3.5
|
)
|
—
|
|
Other - net
|
0.3
|
|
1.0
|
|
(0.2
|
)
|
Effective Tax Rate
|
21.7
|
%
|
78.7
|
%
|
0.2
|
%
|
1.
|
Includes the impact of valuation allowances in foreign jurisdictions.
|
2.
|
See Notes
5
and
6
for additional information.
|
3.
|
Reflects the impact of the adoption of ASU 2016-09, "Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting," which was adopted January 1, 2017, and resulted in the recognition of excess tax benefits related to stock-based compensation in "Provision for income taxes."
|
Deferred Tax Balances at Dec 31
|
2018
|
2017
|
||||||||||
In millions
|
Assets
|
Liabilities
|
Assets
|
Liabilities
|
||||||||
Property
|
$
|
460
|
|
$
|
2,550
|
|
$
|
508
|
|
$
|
2,474
|
|
Tax loss and credit carryforwards
|
2,244
|
|
—
|
|
1,734
|
|
—
|
|
||||
Postretirement benefit obligations
|
2,226
|
|
213
|
|
2,442
|
|
136
|
|
||||
Other accruals and reserves
|
1,250
|
|
110
|
|
1,251
|
|
146
|
|
||||
Intangibles
|
151
|
|
942
|
|
176
|
|
1,010
|
|
||||
Inventory
|
68
|
|
163
|
|
35
|
|
171
|
|
||||
Investments
|
181
|
|
60
|
|
272
|
|
158
|
|
||||
Other – net
|
587
|
|
442
|
|
420
|
|
414
|
|
||||
Subtotal
|
$
|
7,167
|
|
$
|
4,480
|
|
$
|
6,838
|
|
$
|
4,509
|
|
Valuation allowances
|
(1,320
|
)
|
—
|
|
(1,371
|
)
|
—
|
|
||||
Total
|
$
|
5,847
|
|
$
|
4,480
|
|
$
|
5,467
|
|
$
|
4,509
|
|
Operating Loss and Tax Credit Carryforwards at Dec 31
|
2018
|
2017
|
||||
In millions
|
Assets
|
Assets
|
||||
Operating loss carryforwards
|
|
|
||||
Expire within 5 years
|
$
|
268
|
|
$
|
246
|
|
Expire after 5 years or indefinite expiration
|
1,319
|
|
1,305
|
|
||
Total operating loss carryforwards
|
$
|
1,587
|
|
$
|
1,551
|
|
Tax credit carryforwards
|
|
|
||||
Expire within 5 years
|
$
|
32
|
|
$
|
39
|
|
Expire after 5 years or indefinite expiration
|
625
|
|
144
|
|
||
Total tax credit carryforwards
|
$
|
657
|
|
$
|
183
|
|
Total operating loss and tax credit carryforwards
|
$
|
2,244
|
|
$
|
1,734
|
|
Total Gross Unrecognized Tax Benefits
|
|
|
|
||||||
In millions
|
2018
|
2017
|
2016
|
||||||
Total unrecognized tax benefits at Jan 1
|
$
|
253
|
|
$
|
231
|
|
$
|
280
|
|
Decreases related to positions taken on items from prior years
|
(7
|
)
|
(4
|
)
|
(12
|
)
|
|||
Increases related to positions taken on items from prior years
1
|
68
|
|
37
|
|
153
|
|
|||
Increases related to positions taken in the current year
2
|
2
|
|
10
|
|
135
|
|
|||
Settlement of uncertain tax positions with tax authorities
1
|
—
|
|
(12
|
)
|
(325
|
)
|
|||
Decreases due to expiration of statutes of limitations
|
(1
|
)
|
(9
|
)
|
—
|
|
|||
Foreign exchange gain
|
(2
|
)
|
—
|
|
—
|
|
|||
Total unrecognized tax benefits at Dec 31
|
$
|
313
|
|
$
|
253
|
|
$
|
231
|
|
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate
|
$
|
236
|
|
$
|
243
|
|
$
|
223
|
|
Total amount of interest and penalties (benefit) recognized in "Provision for income taxes"
|
$
|
(12
|
)
|
$
|
2
|
|
$
|
(55
|
)
|
Total accrual for interest and penalties recognized in the consolidated balance sheets
|
$
|
109
|
|
$
|
110
|
|
$
|
89
|
|
1.
|
The 2016 balance includes the impact of a settlement agreement related to a historical change in the legal ownership structure of a nonconsolidated affiliate discussed below.
|
2.
|
The 2016 balance includes
$126 million
assumed in the Dow Silicones ownership restructure.
|
Tax Years Subject to Examination by Major Tax Jurisdiction at Dec 31, 2018
|
Earliest Open Year
|
Jurisdiction
|
|
Argentina
|
2011
|
Brazil
|
2006
|
Canada
|
2012
|
China
|
2008
|
Germany
|
2009
|
Italy
|
2013
|
The Netherlands
|
2016
|
Switzerland
|
2012
|
United States:
|
|
Federal income tax
|
2004
|
State and local income tax
|
2004
|
Inventories at Dec 31
|
|
|
||||
In millions
|
2018
|
2017
|
||||
Finished goods
|
$
|
5,640
|
|
$
|
5,213
|
|
Work in process
|
2,214
|
|
1,747
|
|
||
Raw materials
|
941
|
|
898
|
|
||
Supplies
|
880
|
|
848
|
|
||
Total
|
$
|
9,675
|
|
$
|
8,706
|
|
Adjustment of inventories to a LIFO basis
|
(415
|
)
|
(330
|
)
|
||
Total inventories
|
$
|
9,260
|
|
$
|
8,376
|
|
Property at Dec 31
|
Estimated Useful
Lives (Years)
|
2018
|
2017
|
|||||
In millions
|
||||||||
Land and land improvements
|
0-25
|
|
$
|
2,557
|
|
$
|
2,535
|
|
Buildings
|
5-50
|
|
6,067
|
|
5,920
|
|
||
Machinery and equipment
|
3-25
|
|
45,133
|
|
43,208
|
|
||
Other property
|
3-50
|
|
5,414
|
|
5,277
|
|
||
Construction in progress
|
—
|
|
2,266
|
|
3,486
|
|
||
Total property
|
|
$
|
61,437
|
|
$
|
60,426
|
|
In millions
|
2018
|
2017
|
2016
|
||||||
Depreciation expense
|
$
|
2,432
|
|
$
|
2,329
|
|
$
|
2,130
|
|
Capitalized interest
|
$
|
88
|
|
$
|
240
|
|
$
|
243
|
|
Investments in Nonconsolidated Affiliates at Dec 31
|
2018
1
|
2017
1
|
||||
In millions
|
||||||
Investment in nonconsolidated affiliates
|
$
|
3,823
|
|
$
|
3,742
|
|
Other noncurrent obligations
|
(495
|
)
|
(752
|
)
|
||
Net investment in nonconsolidated affiliates
|
$
|
3,328
|
|
$
|
2,990
|
|
1.
|
The carrying amount of the Company’s investments in nonconsolidated affiliates at
December 31, 2018
, was
$10 million
less than its share of the investees’ net assets, (
$32 million
less at
December 31, 2017
), exclusive of additional differences relating to EQUATE Petrochemical Company K.S.C.C. ("EQUATE") and AFSI, which are discussed separately in the disclosures that follow.
|
Dividends Received from Nonconsolidated Affiliates
|
2018
|
2017
1
|
2016
|
||||||
In millions
|
|||||||||
Dividends from nonconsolidated affiliates
|
$
|
908
|
|
$
|
865
|
|
$
|
685
|
|
1.
|
Includes a non-cash dividend of
$8 million
.
|
Principal Nonconsolidated Affiliates at Dec 31
|
Country
|
Ownership Interest
|
|||||
|
2018
|
2017
|
2016
|
||||
EQUATE Petrochemical Company K.S.C.C.
|
Kuwait
|
42.5
|
%
|
42.5
|
%
|
42.5
|
%
|
The HSC Group:
|
|
|
|
|
|||
DC HSC Holdings LLC
1
|
United States
|
50
|
%
|
50
|
%
|
50
|
%
|
Hemlock Semiconductor L.L.C.
|
United States
|
50.1
|
%
|
50.1
|
%
|
50.1
|
%
|
The Kuwait Olefins Company K.S.C.C.
|
Kuwait
|
42.5
|
%
|
42.5
|
%
|
42.5
|
%
|
The Kuwait Styrene Company K.S.C.C.
|
Kuwait
|
42.5
|
%
|
42.5
|
%
|
42.5
|
%
|
Map Ta Phut Olefins Company Limited
2
|
Thailand
|
32.77
|
%
|
32.77
|
%
|
32.77
|
%
|
Sadara Chemical Company
|
Saudi Arabia
|
35
|
%
|
35
|
%
|
35
|
%
|
The SCG-Dow Group:
|
|
|
|
|
|||
Siam Polyethylene Company Limited
|
Thailand
|
50
|
%
|
50
|
%
|
50
|
%
|
Siam Polystyrene Company Limited
|
Thailand
|
50
|
%
|
50
|
%
|
50
|
%
|
Siam Styrene Monomer Co., Ltd.
|
Thailand
|
50
|
%
|
50
|
%
|
50
|
%
|
Siam Synthetic Latex Company Limited
|
Thailand
|
50
|
%
|
50
|
%
|
50
|
%
|
1.
|
DC HSC Holdings LLC holds an
80.5 percent
indirect ownership interest in Hemlock Semiconductor Operations LLC.
|
2.
|
The Company's effective ownership of Map Ta Phut Olefins Company Limited is
32.77 percent
, of which the Company directly owns
20.27 percent
and indirectly owns
12.5 percent
through its equity interest in Siam Polyethylene Company Limited.
|
Equity Earnings from Principal Nonconsolidated Affiliates
|
2018
|
2017
|
2016
1
|
||||||
In millions
|
|||||||||
Equity in earnings of principal nonconsolidated affiliates
|
$
|
950
|
|
$
|
701
|
|
$
|
449
|
|
1.
|
Equity in earnings of principal nonconsolidated affiliates for 2016 includes the results of Dow Silicones through May 31, 2016.
|
1.
|
The results in this table reflect purchase and sale activity between certain principal nonconsolidated affiliates and the Company, as previously discussed in the "Transactions with Nonconsolidated Affiliates" section.
|
2.
|
The summarized income statement information for 2016 includes the results of Dow Silicones through May 31, 2016.
|
Goodwill
|
|||
In millions
|
|||
Balance at Jan 1, 2017
|
$
|
15,272
|
|
Sale of SKC Haas Display Films
1
|
(34
|
)
|
|
Divestiture of the EAA Business
2
|
(23
|
)
|
|
Divestiture of the DAS Divested Ag Business
3
|
(128
|
)
|
|
Dissolution of joint venture
4
|
48
|
|
|
Goodwill impairment
|
(1,491
|
)
|
|
Foreign currency impact
|
299
|
|
|
Other
|
(5
|
)
|
|
Balance at Dec 31, 2017
|
$
|
13,938
|
|
Foreign currency impact
|
(80
|
)
|
|
Other
|
(10
|
)
|
|
Balance at Dec 31, 2018
|
$
|
13,848
|
|
1.
|
On June 30, 2017, the Company sold its ownership interest in the SKC Haas Display Films group of companies. See Note
18
for additional information.
|
2.
|
On September 1, 2017, the Company divested its EAA Business to SK Global Chemical Co., Ltd. See Note
6
for additional information.
|
3.
|
On November 30, 2017, the Company divested the DAS Divested Ag Business to CITIC Agri Fund. See Note
6
for additional information.
|
4.
|
On December 31, 2017, the Company dissolved a crude acrylic acid joint venture. See Note
23
for additional information.
|
Other Intangible Assets at Dec 31
|
2018
|
2017
|
||||||||||||||||
In millions
|
Gross
Carrying
Amount
|
Accum
Amort
|
Net
|
Gross
Carrying
Amount
|
Accum
Amort
|
Net
|
||||||||||||
Intangible assets with finite lives:
|
|
|
|
|
|
|
||||||||||||
Developed technology
|
$
|
3,255
|
|
$
|
(1,934
|
)
|
$
|
1,321
|
|
$
|
3,263
|
|
$
|
(1,690
|
)
|
$
|
1,573
|
|
Software
|
1,529
|
|
(876
|
)
|
653
|
|
1,420
|
|
(780
|
)
|
640
|
|
||||||
Trademarks/tradenames
|
688
|
|
(631
|
)
|
57
|
|
697
|
|
(570
|
)
|
127
|
|
||||||
Customer-related
|
4,911
|
|
(2,151
|
)
|
2,760
|
|
5,035
|
|
(1,965
|
)
|
3,070
|
|
||||||
Other
|
243
|
|
(170
|
)
|
73
|
|
245
|
|
(156
|
)
|
89
|
|
||||||
Total other intangible assets, finite lives
|
$
|
10,626
|
|
$
|
(5,762
|
)
|
$
|
4,864
|
|
$
|
10,660
|
|
$
|
(5,161
|
)
|
$
|
5,499
|
|
In-process research and development ("IPR&D")
|
49
|
|
—
|
|
49
|
|
50
|
|
—
|
|
50
|
|
||||||
Total other intangible assets
|
$
|
10,675
|
|
$
|
(5,762
|
)
|
$
|
4,913
|
|
$
|
10,710
|
|
$
|
(5,161
|
)
|
$
|
5,549
|
|
Amortization Expense
|
2018
|
2017
|
2016
|
||||||
In millions
|
|||||||||
Other intangible assets, excluding software
|
$
|
622
|
|
$
|
624
|
|
$
|
544
|
|
Software, included in “Cost of sales”
|
$
|
100
|
|
$
|
87
|
|
$
|
73
|
|
Interests Held at Dec 31
|
|
|
||||
In millions
|
2018
|
2017
|
||||
Carrying value of interests held
1
|
$
|
—
|
|
$
|
677
|
|
Percentage of anticipated credit losses
|
—
|
%
|
2.64
|
%
|
||
Impact to carrying value - 10% adverse change
|
$
|
—
|
|
$
|
—
|
|
Impact to carrying value - 20% adverse change
|
$
|
—
|
|
$
|
1
|
|
1.
|
Included in "Accounts and notes receivable - other" in the consolidated balance sheets.
|
Cash Proceeds
|
|
|
|
||||||
In millions
|
2018
|
2017
|
2016
|
||||||
Sale of receivables
|
$
|
—
|
|
$
|
1
|
|
$
|
1
|
|
Collections reinvested in revolving receivables
|
$
|
—
|
|
$
|
21,293
|
|
$
|
21,652
|
|
Interests in conduits
1
|
$
|
657
|
|
$
|
9,462
|
|
$
|
8,551
|
|
1.
|
Presented in "Investing Activities" in the consolidated statements of cash flows in accordance with ASU 2016-15. See Notes
1
and
2
for additional information. In connection with the review and implementation of ASU 2016-15, the Company also changed the prior year value of “Interests in conduits” due to additional interpretive guidance of the required method for calculating the cash received from beneficial interests in the conduits, including additional guidance from the SEC's Office of the Chief Accountant issued in the third quarter of 2018 that indicated an entity must evaluate daily transaction activity to calculate the value of cash received from beneficial interests in conduits.
|
Trade Accounts Receivable Sold at Dec 31
|
|
|
||||
In millions
|
2018
|
2017
|
||||
Delinquencies on sold receivables still outstanding
|
$
|
—
|
|
$
|
82
|
|
Trade accounts receivable outstanding and derecognized
|
$
|
—
|
|
$
|
612
|
|
Notes Payable at Dec 31
|
|
|
||||
In millions
|
2018
|
2017
|
||||
Commercial paper
|
$
|
10
|
|
$
|
231
|
|
Notes payable to banks and other lenders
|
295
|
|
253
|
|
||
Total notes payable
|
$
|
305
|
|
$
|
484
|
|
Year-end average interest rates
|
8.61
|
%
|
4.42
|
%
|
Long-Term Debt at Dec 31
|
2018 Average Rate
|
2018
|
2017
Average
Rate
|
2017
|
||||||
In millions
|
||||||||||
Promissory notes and debentures:
|
|
|
|
|
||||||
Final maturity 2018
|
—
|
%
|
$
|
—
|
|
5.78
|
%
|
$
|
339
|
|
Final maturity 2019
|
9.80
|
%
|
7
|
|
8.55
|
%
|
2,122
|
|
||
Final maturity 2020
|
4.46
|
%
|
1,547
|
|
4.46
|
%
|
1,547
|
|
||
Final maturity 2021
|
4.71
|
%
|
1,424
|
|
4.71
|
%
|
1,424
|
|
||
Final maturity 2022
|
3.50
|
%
|
1,373
|
|
3.50
|
%
|
1,373
|
|
||
Final maturity 2023
|
7.64
|
%
|
325
|
|
7.64
|
%
|
325
|
|
||
Final maturity 2024 and thereafter
|
5.73
|
%
|
8,859
|
|
5.92
|
%
|
6,857
|
|
||
Other facilities:
|
|
|
|
|
||||||
U.S. dollar loans, various rates and maturities
|
3.59
|
%
|
4,533
|
|
2.44
|
%
|
4,564
|
|
||
Foreign currency loans, various rates and maturities
|
3.21
|
%
|
713
|
|
3.00
|
%
|
814
|
|
||
Medium-term notes, varying maturities through 2025
|
3.26
|
%
|
778
|
|
3.20
|
%
|
873
|
|
||
Tax-exempt bonds
|
—
|
%
|
—
|
|
5.66
|
%
|
343
|
|
||
Capital lease obligations
|
|
369
|
|
|
282
|
|
||||
Unamortized debt discount and issuance costs
|
|
(334
|
)
|
|
(346
|
)
|
||||
Long-term debt due within one year
1
|
|
(340
|
)
|
|
(752
|
)
|
||||
Long-term debt
|
|
|
$
|
19,254
|
|
|
|
$
|
19,765
|
|
1.
|
Presented net of current portion of unamortized debt issuance costs.
|
1.
|
Assumes the option to extend a term loan facility related to the Dow Silicones ownership restructure will be exercised.
|
Committed and Available Credit Facilities at Dec 31, 2018
|
|||||||||
In millions
|
Effective Date
|
Committed Credit
|
Credit Available
|
Maturity Date
|
Interest
|
||||
Five Year Competitive Advance and Revolving Credit Facility
|
October 2018
|
$
|
5,000
|
|
$
|
5,000
|
|
October 2023
|
Floating rate
|
Bilateral Revolving Credit Facility
|
August 2015
|
100
|
|
100
|
|
March 2019
|
Floating rate
|
||
Bilateral Revolving Credit Facility
|
August 2015
|
100
|
|
100
|
|
October 2019
|
Floating rate
|
||
Bilateral Revolving Credit Facility
|
August 2015
|
100
|
|
100
|
|
March 2020
|
Floating rate
|
||
Bilateral Revolving Credit Facility
|
August 2015
|
280
|
|
280
|
|
March 2020
|
Floating rate
|
||
Bilateral Revolving Credit Facility
|
August 2015
|
100
|
|
100
|
|
March 2020
|
Floating rate
|
||
Bilateral Revolving Credit Facility
|
August 2015
|
200
|
|
200
|
|
March 2020
|
Floating rate
|
||
Term Loan Facility
|
February 2016
|
4,500
|
|
—
|
|
December 2021
|
Floating rate
|
||
Bilateral Revolving Credit Facility
|
May 2016
|
200
|
|
200
|
|
May 2020
|
Floating rate
|
||
Bilateral Revolving Credit Facility
|
July 2016
|
200
|
|
200
|
|
July 2020
|
Floating rate
|
||
Bilateral Revolving Credit Facility
|
August 2016
|
100
|
|
100
|
|
August 2020
|
Floating rate
|
||
North American Securitization Facility
|
September 2018
|
800
|
|
800
|
|
September 2019
|
Floating rate
|
||
European Securitization Facility
1
|
October 2018
|
457
|
|
457
|
|
October 2020
|
Floating rate
|
||
Total Committed and Available Credit Facilities
|
|
$
|
12,137
|
|
$
|
7,637
|
|
|
|
1.
|
Equivalent to
Euro 400 million
.
|
(a)
|
the obligation to maintain the ratio of the Company’s consolidated indebtedness to consolidated capitalization at no greater than
0.65
to
1.00
at any time the aggregate outstanding amount of loans under the Five Year Competitive Advance and Revolving Credit Facility Agreement dated October 30, 2018, equals or exceeds
$500 million
,
|
(b)
|
a default if the Company or an applicable subsidiary fails to make any payment, including principal, premium or interest, under the applicable agreement on other indebtedness of, or guaranteed by, the Company or such applicable subsidiary in an aggregate amount of
$100 million
or more when due, or any other default or other event under the applicable agreement with respect to such indebtedness occurs which permits or results in the acceleration of
$400 million
or more in the aggregate of principal, and
|
(c)
|
a default if the Company or any applicable subsidiary fails to discharge or stay within 60 days after the entry of a final judgment against the Company or such applicable subsidiary of more than
$400 million
.
|
Guarantees
|
Dec 31, 2018
|
Dec 31, 2017
|
||||||||||||
In millions
|
Final
Expiration
|
Maximum
Future Payments
|
Recorded
Liability
|
Final
Expiration
|
Maximum
Future Payments
|
Recorded
Liability
|
||||||||
Guarantees
|
2023
|
$
|
4,523
|
|
$
|
25
|
|
2023
|
$
|
4,774
|
|
$
|
49
|
|
Residual value guarantees
|
2028
|
885
|
|
130
|
|
2027
|
889
|
|
135
|
|
||||
Total guarantees
|
|
$
|
5,408
|
|
$
|
155
|
|
|
$
|
5,663
|
|
$
|
184
|
|
Asset Retirement Obligations
|
2018
|
2017
|
||||
In millions
|
||||||
Balance at Jan 1
|
$
|
104
|
|
$
|
110
|
|
Additional accruals
|
10
|
|
3
|
|
||
Liabilities settled
|
(4
|
)
|
(9
|
)
|
||
Accretion expense
|
3
|
|
5
|
|
||
Revisions in estimated cash flows
|
—
|
|
(9
|
)
|
||
Other
|
1
|
|
4
|
|
||
Balance at Dec 31
|
$
|
114
|
|
$
|
104
|
|
Treasury Shares Issued Under Stock-Based Compensation Programs
|
|
|
|
||
In thousands
|
2018
|
2017
1
|
2016
|
||
To employees and non-employee directors
|
N/A
|
14,195
|
|
14,494
|
|
1.
|
Reflects activity prior to the Merger.
|
Shares of Dow Common Stock
|
Issued
|
Held in Treasury
|
||
In thousands
|
||||
Balance at Jan 1, 2016
|
1,242,795
|
|
125,853
|
|
Issued
1
|
—
|
|
(14,494
|
)
|
Repurchased
|
—
|
|
17,107
|
|
Preferred stock converted to common stock
|
—
|
|
(96,804
|
)
|
Balance at Dec 31, 2016
|
1,242,795
|
|
31,662
|
|
Issued
1
|
—
|
|
(14,195
|
)
|
Converted to DowDuPont shares or canceled on Aug 31, 2017
2
|
(1,242,795
|
)
|
(17,467
|
)
|
Balance at Aug 31, 2017
|
—
|
|
—
|
|
1.
|
Shares issued to employees and non-employee directors under the Company's equity compensation plans.
|
2.
|
Each share of Dow Common Stock issued and outstanding immediately prior to the Merger was converted into one share of DowDuPont Common Stock; treasury shares were canceled as a result of the Merger.
|
Accumulated Other Comprehensive Loss
|
Unrealized Gains (Losses) on Investments
|
Cumulative Translation Adj
|
Pension and Other Postretire Benefits
|
Derivative Instruments
|
Total Accum Other Comp Loss
|
||||||||||
In millions
|
|||||||||||||||
2016
|
|
|
|
|
|
||||||||||
Balance at Jan 1, 2016
|
$
|
47
|
|
$
|
(1,737
|
)
|
$
|
(6,769
|
)
|
$
|
(208
|
)
|
$
|
(8,667
|
)
|
Other comprehensive income (loss) before reclassifications
|
32
|
|
(644
|
)
|
(1,354
|
)
|
84
|
|
(1,882
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
(36
|
)
|
—
|
|
734
|
|
29
|
|
727
|
|
|||||
Net other comprehensive income (loss)
|
$
|
(4
|
)
|
$
|
(644
|
)
|
$
|
(620
|
)
|
$
|
113
|
|
$
|
(1,155
|
)
|
Balance at Dec 31, 2016
|
$
|
43
|
|
$
|
(2,381
|
)
|
$
|
(7,389
|
)
|
$
|
(95
|
)
|
$
|
(9,822
|
)
|
2017
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss) before reclassifications
|
25
|
|
908
|
|
(23
|
)
|
1
|
|
911
|
|
|||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
(71
|
)
|
(8
|
)
|
414
|
|
(15
|
)
|
320
|
|
|||||
Net other comprehensive income (loss)
|
$
|
(46
|
)
|
$
|
900
|
|
$
|
391
|
|
$
|
(14
|
)
|
$
|
1,231
|
|
Balance at Dec 31, 2017
|
$
|
(3
|
)
|
$
|
(1,481
|
)
|
$
|
(6,998
|
)
|
$
|
(109
|
)
|
$
|
(8,591
|
)
|
2018
|
|
|
|
|
|
||||||||||
Balance at Jan 1, 2018
1
|
$
|
17
|
|
$
|
(1,481
|
)
|
$
|
(6,998
|
)
|
$
|
(109
|
)
|
$
|
(8,571
|
)
|
Other comprehensive income (loss) before reclassifications
|
(74
|
)
|
(221
|
)
|
(495
|
)
|
4
|
|
(786
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
7
|
|
(4
|
)
|
455
|
|
71
|
|
529
|
|
|||||
Net other comprehensive income (loss)
|
$
|
(67
|
)
|
$
|
(225
|
)
|
$
|
(40
|
)
|
$
|
75
|
|
$
|
(257
|
)
|
Reclassification of stranded tax effects
2
|
$
|
(1
|
)
|
$
|
(107
|
)
|
$
|
(927
|
)
|
$
|
(22
|
)
|
$
|
(1,057
|
)
|
Balance at Dec 31, 2018
|
$
|
(51
|
)
|
$
|
(1,813
|
)
|
$
|
(7,965
|
)
|
$
|
(56
|
)
|
$
|
(9,885
|
)
|
1.
|
The beginning balance of "Unrealized gains (losses) on investments" was increased by
$20 million
to reflect the impact of adoption of ASU 2016-01. See Notes 1 and 2 for additional information.
|
2.
|
Amounts reclassified to retained earnings as a result of the adoption of ASU 2018-02. See Notes 1 and 2 for additional information.
|
Tax Benefit (Expense)
1
|
2018
|
2017
|
2016
|
||||||
In millions
|
|||||||||
Unrealized gains (losses) on investments
|
$
|
17
|
|
$
|
26
|
|
$
|
(2
|
)
|
Cumulative translation adjustments
|
(6
|
)
|
(98
|
)
|
(171
|
)
|
|||
Pension and other postretirement benefit plans
|
(9
|
)
|
(213
|
)
|
438
|
|
|||
Derivative instruments
|
(20
|
)
|
(3
|
)
|
(32
|
)
|
|||
Tax benefit (expense) from income taxes related to other comprehensive income
(loss) items
|
$
|
(18
|
)
|
$
|
(288
|
)
|
$
|
233
|
|
1.
|
Prior year amounts have been updated to conform with the current year presentation.
|
Reclassifications Out of Accumulated Other Comprehensive Loss
In millions
|
2018
|
2017
|
2016
|
Consolidated Statements of Income Classification
|
|||||||
Unrealized (gains) losses on investments
|
$
|
9
|
|
$
|
(110
|
)
|
$
|
(56
|
)
|
See (1) below
|
|
Tax (benefit) expense
|
(2
|
)
|
39
|
|
20
|
|
See (2) below
|
||||
After tax
|
$
|
7
|
|
$
|
(71
|
)
|
$
|
(36
|
)
|
|
|
Cumulative translation adjustments
|
$
|
(4
|
)
|
$
|
(8
|
)
|
$
|
—
|
|
See (3) below
|
|
Pension and other postretirement benefit plans
|
$
|
594
|
|
$
|
607
|
|
$
|
913
|
|
See (4) below
|
|
Tax benefit
|
(139
|
)
|
(193
|
)
|
(179
|
)
|
See (2) below
|
||||
After tax
|
$
|
455
|
|
$
|
414
|
|
$
|
734
|
|
|
|
Derivative instruments
|
$
|
89
|
|
$
|
(13
|
)
|
$
|
34
|
|
See (5) below
|
|
Tax benefit
|
(18
|
)
|
(2
|
)
|
(5
|
)
|
See (2) below
|
||||
After tax
|
$
|
71
|
|
$
|
(15
|
)
|
$
|
29
|
|
|
|
Total reclassifications for the period, after tax
|
$
|
529
|
|
$
|
320
|
|
$
|
727
|
|
|
1.
|
"Net sales" and "Sundry income (expense) - net."
|
2.
|
"Provision for income taxes."
|
3.
|
"Sundry income (expense) - net."
|
4.
|
These AOCL components are included in the computation of net periodic benefit cost of the Company's defined benefit pension and other postretirement benefit plans. See Note
19
for additional information. In the year ended December 31, 2016,
$360 million
was included in “Sundry income (expense) - net” (
zero
impact to "Provision for income taxes") related to the Dow Silicones ownership restructure. See Note
5
for additional information.
|
5.
|
"Cost of sales," "Sundry income (expense) - net" and "Interest expense and amortization of debt discount."
|
Noncontrolling Interests
|
|
|
|
||||||
In millions
|
2018
|
2017
|
2016
1
|
||||||
Balance at Jan 1
|
$
|
1,186
|
|
$
|
1,242
|
|
$
|
809
|
|
Net income attributable to noncontrolling interests
|
134
|
|
129
|
|
86
|
|
|||
Distributions to noncontrolling interests
2
|
(145
|
)
|
(109
|
)
|
(123
|
)
|
|||
Acquisition of noncontrolling interests
3
|
—
|
|
—
|
|
473
|
|
|||
Deconsolidation of noncontrolling interests
4
|
—
|
|
(119
|
)
|
—
|
|
|||
Cumulative translation adjustments
|
(39
|
)
|
41
|
|
(4
|
)
|
|||
Other
|
2
|
|
2
|
|
1
|
|
|||
Balance at Dec 31
|
$
|
1,138
|
|
$
|
1,186
|
|
$
|
1,242
|
|
1.
|
The 2016 activity presented in the table excludes a
$202 million
cash payment for the purchase of a noncontrolling interest, as the noncontrolling interest was classified as "Accrued and other current liabilities" in the consolidated balance sheets.
|
2.
|
Distributions to noncontrolling interests is net of
$27 million
in
2018
(
$20 million
in
2017
and
$53 million
in
2016
) in dividends paid to a joint venture, which were reclassified to "Equity in earnings of nonconsolidated affiliates" in the consolidated statements of income.
|
3.
|
Assumed in the ownership restructure of Dow Silicones. See Note
5
for additional information.
|
4.
|
On June 30, 2017, the Company sold its ownership interest in the SKC Haas Display Films group of companies. See Note
13
for additional information.
|
Weighted-Average Assumptions for All Pension Plans
|
Benefit Obligations
at Dec 31
|
Net Periodic Costs
for the Year Ended
|
||||||||
|
2018
|
2017
|
2018
|
2017
|
2016
|
|||||
Discount rate
|
3.69
|
%
|
3.17
|
%
|
3.17
|
%
|
3.52
|
%
|
3.85
|
%
|
Interest crediting rate for applicable benefits
|
3.72
|
%
|
3.61
|
%
|
3.61
|
%
|
3.45
|
%
|
4.81
|
%
|
Rate of compensation increase
|
3.84
|
%
|
3.88
|
%
|
3.88
|
%
|
3.90
|
%
|
4.04
|
%
|
Expected return on plan assets
|
—
|
|
—
|
|
7.11
|
%
|
7.16
|
%
|
7.22
|
%
|
Weighted-Average Assumptions for U.S. Pension Plans
|
Benefit Obligations
at Dec 31
|
Net Periodic Costs
for the Year Ended
|
||||||||
|
2018
|
2017
|
2018
|
2017
|
2016
|
|||||
Discount rate
|
4.39
|
%
|
3.66
|
%
|
3.66
|
%
|
4.11
|
%
|
4.40
|
%
|
Interest crediting rate for applicable benefits
|
4.50
|
%
|
4.50
|
%
|
4.50
|
%
|
4.50
|
%
|
4.50
|
%
|
Rate of compensation increase
|
4.25
|
%
|
4.25
|
%
|
4.25
|
%
|
4.25
|
%
|
4.50
|
%
|
Expected return on plan assets
|
—
|
|
—
|
|
7.92
|
%
|
7.91
|
%
|
7.77
|
%
|
Weighted-Average Assumptions for U.S. Other Postretirement Benefits Plans
|
Benefit Obligations
at Dec 31
|
Net Periodic Costs
for the Year Ended
|
||||||||
|
2018
|
2017
|
2018
|
2017
|
2016
|
|||||
Discount rate
|
4.24
|
%
|
3.51
|
%
|
3.51
|
%
|
3.83
|
%
|
3.96
|
%
|
Health care cost trend rate assumed for next year
|
6.50
|
%
|
6.75
|
%
|
6.75
|
%
|
7.00
|
%
|
7.25
|
%
|
Rate to which the cost trend rate is assumed to decline (the ultimate health care cost trend rate)
|
5.00
|
%
|
5.00
|
%
|
5.00
|
%
|
5.00
|
%
|
5.00
|
%
|
Year that the rate reaches the ultimate health care cost trend rate
|
2025
|
|
2025
|
|
2025
|
|
2025
|
|
2025
|
|
Change in Projected Benefit Obligations, Plan Assets and Funded Status of All Significant Plans
|
Defined Benefit Pension Plans
|
Other Postretirement Benefits
|
||||||||||
In millions
|
2018
|
2017
|
2018
|
2017
|
||||||||
Change in projected benefit obligations:
|
|
|
|
|
||||||||
Benefit obligations at beginning of year
|
$
|
31,851
|
|
$
|
30,280
|
|
$
|
1,567
|
|
$
|
1,835
|
|
Service cost
|
520
|
|
506
|
|
12
|
|
14
|
|
||||
Interest cost
|
886
|
|
883
|
|
45
|
|
54
|
|
||||
Plan participants' contributions
|
19
|
|
14
|
|
—
|
|
—
|
|
||||
Actuarial changes in assumptions and experience
|
(1,754
|
)
|
1,804
|
|
(13
|
)
|
(198
|
)
|
||||
Benefits paid
|
(1,476
|
)
|
(1,440
|
)
|
(123
|
)
|
(151
|
)
|
||||
Plan amendments
|
17
|
|
14
|
|
—
|
|
—
|
|
||||
Acquisitions/divestitures/other
1
|
(45
|
)
|
50
|
|
—
|
|
—
|
|
||||
Effect of foreign exchange rates
|
(418
|
)
|
932
|
|
(10
|
)
|
13
|
|
||||
Termination benefits/curtailment cost/settlements
2
|
—
|
|
(1,192
|
)
|
—
|
|
—
|
|
||||
Benefit obligations at end of year
|
$
|
29,600
|
|
$
|
31,851
|
|
$
|
1,478
|
|
$
|
1,567
|
|
|
|
|
|
|
||||||||
Change in plan assets:
|
|
|
|
|
||||||||
Fair value of plan assets at beginning of year
|
$
|
23,401
|
|
$
|
21,208
|
|
$
|
—
|
|
$
|
—
|
|
Actual return on plan assets
|
(742
|
)
|
2,500
|
|
—
|
|
—
|
|
||||
Employer contributions
|
1,656
|
|
1,676
|
|
—
|
|
—
|
|
||||
Plan participants' contributions
|
19
|
|
14
|
|
—
|
|
—
|
|
||||
Benefits paid
|
(1,476
|
)
|
(1,440
|
)
|
—
|
|
—
|
|
||||
Acquisitions/divestitures/other
3
|
—
|
|
(15
|
)
|
—
|
|
—
|
|
||||
Effect of foreign exchange rates
|
(314
|
)
|
646
|
|
—
|
|
—
|
|
||||
Settlements
4
|
—
|
|
(1,188
|
)
|
—
|
|
—
|
|
||||
Fair value of plan assets at end of year
|
$
|
22,544
|
|
$
|
23,401
|
|
$
|
—
|
|
$
|
—
|
|
|
|
|
|
|
||||||||
Funded status:
|
|
|
|
|
||||||||
U.S. plans with plan assets
|
$
|
(4,066
|
)
|
$
|
(5,363
|
)
|
$
|
—
|
|
$
|
—
|
|
Non-U.S. plans with plan assets
|
(2,263
|
)
|
(2,333
|
)
|
—
|
|
—
|
|
||||
All other plans
|
(727
|
)
|
(754
|
)
|
(1,478
|
)
|
(1,567
|
)
|
||||
Funded status at end of year
|
$
|
(7,056
|
)
|
$
|
(8,450
|
)
|
$
|
(1,478
|
)
|
$
|
(1,567
|
)
|
|
|
|
|
|
||||||||
Amounts recognized in the consolidated balance sheets at Dec 31:
|
|
|
|
|
||||||||
Deferred charges and other assets
|
$
|
491
|
|
$
|
548
|
|
$
|
—
|
|
$
|
—
|
|
Accrued and other current liabilities
|
(52
|
)
|
(48
|
)
|
(131
|
)
|
(125
|
)
|
||||
Pension and other postretirement benefits - noncurrent
|
(7,495
|
)
|
(8,950
|
)
|
(1,347
|
)
|
(1,442
|
)
|
||||
Net amount recognized
|
$
|
(7,056
|
)
|
$
|
(8,450
|
)
|
$
|
(1,478
|
)
|
$
|
(1,567
|
)
|
|
|
|
|
|
||||||||
Pretax amounts recognized in accumulated other comprehensive loss at Dec 31:
|
|
|
|
|
||||||||
Net loss (gain)
|
$
|
10,841
|
|
$
|
10,899
|
|
$
|
(315
|
)
|
$
|
(326
|
)
|
Prior service credit
|
(224
|
)
|
(265
|
)
|
—
|
|
—
|
|
||||
Pretax balance in accumulated other comprehensive loss at end of year
|
$
|
10,617
|
|
$
|
10,634
|
|
$
|
(315
|
)
|
$
|
(326
|
)
|
1.
|
The 2018 impact includes the divestiture of a business with pension benefit obligations of
$37 million
. The 2017 impact includes the reclassification of a China pension liability of
$69 million
from "Other noncurrent obligations" to "Pension and other postretirement benefits - noncurrent" and the divestiture of a South Korean company with pension benefit obligations of
$25 million
.
|
2.
|
The 2017 impact includes the settlement of certain plan obligations for a U.S. non-qualified pension plan of
$1,170 million
required due to a change in control provision. The 2017 impact also includes the conversion of a South Korean pension plan of
$22 million
to a defined contribution plan.
|
3.
|
The 2017 impact relates to the divestiture of a South Korean company.
|
4.
|
The 2017 impact includes payments made of
$1,170 million
to settle certain plan obligations of a U.S. non-qualified pension plan required due to a change in control provision. The 2017 impact also includes payments made of
$18 million
to convert a South Korean pension plan to a defined contribution plan.
|
Net Periodic Benefit Costs for All Significant Plans for the Year Ended Dec 31
|
Defined Benefit Pension Plans
|
Other Postretirement Benefits
|
||||||||||||||||
In millions
|
2018
|
2017
|
2016
|
2018
|
2017
|
2016
|
||||||||||||
Net Periodic Benefit Costs:
|
|
|
|
|
|
|
||||||||||||
Service cost
|
$
|
520
|
|
$
|
506
|
|
$
|
463
|
|
$
|
12
|
|
$
|
14
|
|
$
|
13
|
|
Interest cost
|
886
|
|
883
|
|
846
|
|
45
|
|
54
|
|
52
|
|
||||||
Expected return on plan assets
|
(1,644
|
)
|
(1,548
|
)
|
(1,447
|
)
|
—
|
|
—
|
|
—
|
|
||||||
Amortization of prior service credit
|
(24
|
)
|
(25
|
)
|
(24
|
)
|
—
|
|
—
|
|
(3
|
)
|
||||||
Amortization of unrecognized (gain) loss
|
642
|
|
638
|
|
587
|
|
(24
|
)
|
(6
|
)
|
(7
|
)
|
||||||
Curtailment/settlement/other
1
|
—
|
|
683
|
|
(36
|
)
|
—
|
|
—
|
|
—
|
|
||||||
Net periodic benefit costs
|
$
|
380
|
|
$
|
1,137
|
|
$
|
389
|
|
$
|
33
|
|
$
|
62
|
|
$
|
55
|
|
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
|
|
|
|
|
|
|
||||||||||||
Net (gain) loss
|
$
|
584
|
|
$
|
845
|
|
$
|
1,954
|
|
$
|
(13
|
)
|
$
|
(199
|
)
|
$
|
14
|
|
Prior service cost
|
17
|
|
14
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Amortization of prior service credit
|
24
|
|
25
|
|
24
|
|
—
|
|
—
|
|
3
|
|
||||||
Amortization of unrecognized gain (loss)
|
(642
|
)
|
(638
|
)
|
(587
|
)
|
24
|
|
6
|
|
7
|
|
||||||
Settlement loss
2
|
—
|
|
(687
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Total recognized in other comprehensive (income) loss
|
$
|
(17
|
)
|
$
|
(441
|
)
|
$
|
1,391
|
|
$
|
11
|
|
$
|
(193
|
)
|
$
|
24
|
|
Total recognized in net periodic benefit cost and other comprehensive (income) loss
|
$
|
363
|
|
$
|
696
|
|
$
|
1,780
|
|
$
|
44
|
|
$
|
(131
|
)
|
$
|
79
|
|
1.
|
The 2017 impact relates to the settlement of a U.S. non-qualified plan triggered by a change in control provision. The 2016 impact relates to the curtailment of benefits for certain participants of a Dow Silicones plan in the U.S.
|
2.
|
The 2017 impact relates to the settlement of a U.S. non-qualified plan triggered by a change in control provision.
|
Estimated Future Benefit Payments at Dec 31, 2018
|
Defined Benefit Pension Plans
|
Other Postretirement Benefits
|
||||
In millions
|
||||||
2019
|
$
|
1,549
|
|
$
|
133
|
|
2020
|
1,559
|
|
129
|
|
||
2021
|
1,585
|
|
129
|
|
||
2022
|
1,624
|
|
125
|
|
||
2023
|
1,663
|
|
120
|
|
||
2024-2028
|
8,641
|
|
519
|
|
||
Total
|
$
|
16,621
|
|
$
|
1,155
|
|
Basis of Fair Value Measurements
|
Dec 31, 2018
|
Dec 31, 2017
|
||||||||||||||||||||||
In millions
|
Total
|
Level 1
|
Level 2
|
Level 3
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||||||
Cash and cash equivalents
|
$
|
877
|
|
$
|
818
|
|
$
|
59
|
|
$
|
—
|
|
$
|
772
|
|
$
|
671
|
|
$
|
101
|
|
$
|
—
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. equity securities
1
|
$
|
3,493
|
|
$
|
3,251
|
|
$
|
241
|
|
$
|
1
|
|
$
|
3,755
|
|
$
|
3,416
|
|
$
|
339
|
|
$
|
—
|
|
Non - U.S. equity securities
|
4,242
|
|
3,497
|
|
707
|
|
38
|
|
5,551
|
|
4,533
|
|
978
|
|
40
|
|
||||||||
Total equity securities
|
$
|
7,735
|
|
$
|
6,748
|
|
$
|
948
|
|
$
|
39
|
|
$
|
9,306
|
|
$
|
7,949
|
|
$
|
1,317
|
|
$
|
40
|
|
Fixed income securities:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Debt - government-issued
|
$
|
4,751
|
|
$
|
285
|
|
$
|
4,466
|
|
$
|
—
|
|
$
|
4,596
|
|
$
|
158
|
|
$
|
4,437
|
|
$
|
1
|
|
Debt - corporate-issued
|
2,929
|
|
411
|
|
2,518
|
|
—
|
|
3,300
|
|
351
|
|
2,935
|
|
14
|
|
||||||||
Debt - asset-backed
|
90
|
|
—
|
|
89
|
|
1
|
|
101
|
|
—
|
|
100
|
|
1
|
|
||||||||
Total fixed income securities
|
$
|
7,770
|
|
$
|
696
|
|
$
|
7,073
|
|
$
|
1
|
|
$
|
7,997
|
|
$
|
509
|
|
$
|
7,472
|
|
$
|
16
|
|
Alternative investments:
2
|
|
|
|
|
|
|
|
|
||||||||||||||||
Private market securities
|
$
|
1
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Real estate
|
19
|
|
19
|
|
—
|
|
—
|
|
21
|
|
21
|
|
—
|
|
—
|
|
||||||||
Derivatives - asset position
|
451
|
|
17
|
|
434
|
|
—
|
|
261
|
|
2
|
|
259
|
|
—
|
|
||||||||
Derivatives - liability position
|
(506
|
)
|
(19
|
)
|
(487
|
)
|
—
|
|
(305
|
)
|
(2
|
)
|
(303
|
)
|
—
|
|
||||||||
Total alternative investments
|
$
|
(35
|
)
|
$
|
17
|
|
$
|
(53
|
)
|
$
|
1
|
|
$
|
(23
|
)
|
$
|
21
|
|
$
|
(44
|
)
|
$
|
—
|
|
Other investments
2
|
$
|
380
|
|
$
|
47
|
|
$
|
333
|
|
$
|
—
|
|
$
|
273
|
|
$
|
37
|
|
$
|
236
|
|
$
|
—
|
|
Subtotal
|
$
|
16,727
|
|
$
|
8,326
|
|
$
|
8,360
|
|
$
|
41
|
|
$
|
18,325
|
|
$
|
9,187
|
|
$
|
9,082
|
|
$
|
56
|
|
Investments measured at net asset value:
2
|
|
|
|
|
|
|
|
|
||||||||||||||||
Hedge funds
|
$
|
1,637
|
|
|
|
|
$
|
1,595
|
|
|
|
|
||||||||||||
Private market securities
|
2,196
|
|
|
|
|
1,390
|
|
|
|
|
||||||||||||||
Real estate
|
2,080
|
|
|
|
|
2,200
|
|
|
|
|
||||||||||||||
Total investments measured at net asset value
|
$
|
5,913
|
|
|
|
|
$
|
5,185
|
|
|
|
|
||||||||||||
Items to reconcile to fair value of plan assets:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Pension trust receivables
3
|
$
|
29
|
|
|
|
|
|
|
|
$
|
27
|
|
|
|
|
|
|
|
||||||
Pension trust payables
4
|
(125
|
)
|
|
|
|
|
|
|
(136
|
)
|
|
|
|
|
|
|
||||||||
Total
|
$
|
22,544
|
|
|
|
|
|
|
|
$
|
23,401
|
|
|
|
|
|
|
|
1.
|
No DowDuPont common stock was directly held at
December 31, 2018
or
December 31, 2017
.
|
2.
|
The Company reviewed its fair value technique and elected to present assets valued at net asset value per share as a practical expedient outside of the fair value hierarchy. The assets are presented as "Investments measured at net asset value." Prior period amounts were updated to conform with the current year presentation.
|
3.
|
Primarily receivables for investment securities sold.
|
4.
|
Primarily payables for investment securities purchased.
|
Fair Value Measurement of Level 3 Pension Plan Assets
|
Equity Securities
|
Fixed Income Securities
|
Alternative Investments
|
Other Investments
|
Total
|
||||||||||
In millions
|
|||||||||||||||
Balance at Jan 1, 2017, as previously reported
|
$
|
33
|
|
$
|
17
|
|
$
|
4,117
|
|
$
|
95
|
|
$
|
4,262
|
|
Reclassification of investments measured at net asset value
1
|
—
|
|
—
|
|
(4,061
|
)
|
(95
|
)
|
(4,156
|
)
|
|||||
Balance at Jan 1, 2017, as restated
|
$
|
33
|
|
$
|
17
|
|
$
|
56
|
|
$
|
—
|
|
$
|
106
|
|
Actual return on assets:
|
|
|
|
|
|
||||||||||
Relating to assets sold during 2017
|
(1
|
)
|
—
|
|
5
|
|
—
|
|
4
|
|
|||||
Relating to assets held at Dec 31, 2017
|
5
|
|
1
|
|
(1
|
)
|
—
|
|
5
|
|
|||||
Purchases, sales and settlements, net
|
3
|
|
(2
|
)
|
(60
|
)
|
—
|
|
(59
|
)
|
|||||
Balance at Dec 31, 2017
|
$
|
40
|
|
$
|
16
|
|
$
|
—
|
|
$
|
—
|
|
$
|
56
|
|
Actual return on assets:
|
|
|
|
|
|
||||||||||
Relating to assets sold during 2018
|
—
|
|
4
|
|
(1
|
)
|
1
|
|
4
|
|
|||||
Relating to assets held at Dec 31, 2018
|
(3
|
)
|
(4
|
)
|
—
|
|
—
|
|
(7
|
)
|
|||||
Purchases, sales and settlements, net
|
2
|
|
(15
|
)
|
2
|
|
(1
|
)
|
(12
|
)
|
|||||
Balance at Dec 31, 2018
|
$
|
39
|
|
$
|
1
|
|
$
|
1
|
|
$
|
—
|
|
$
|
41
|
|
1.
|
The Company reviewed its fair value technique and elected to present assets valued at net asset value per share as a practical expedient outside of the fair value hierarchy, including those classified as Level 3 pension plan assets. The assets are presented as "Investments measured at net asset value."
|
Weighted-Average Assumptions
|
2018
|
2017
|
2016
|
|||
Dividend yield
|
2.13
|
%
|
3.01
|
%
|
4.13
|
%
|
Expected volatility
|
23.34
|
%
|
23.71
|
%
|
31.60
|
%
|
Risk-free interest rate
|
2.83
|
%
|
1.28
|
%
|
1.12
|
%
|
Expected life of stock options granted during period (years)
|
6.2
|
|
7.5
|
|
7.8
|
|
Life of Employee Stock Purchase Plan (months)
|
—
|
|
3
|
|
4
|
|
Stock Options
|
2018
|
|||||
Shares in thousands
|
Shares
|
Exercise
Price
1
|
||||
Outstanding at Jan 1, 2018
|
26,628
|
|
$
|
38.30
|
|
|
Granted
|
6,571
|
|
$
|
71.43
|
|
|
Exercised
|
(4,074
|
)
|
$
|
30.65
|
|
|
Forfeited/Expired
|
(279
|
)
|
$
|
61.47
|
|
|
Outstanding at Dec 31, 2018
|
28,846
|
|
$
|
46.70
|
|
|
Remaining contractual life in years
|
|
|
5.46
|
|
||
Aggregate intrinsic value in millions
|
$
|
327
|
|
|
|
|
Exercisable at Dec 31, 2018
|
21,813
|
|
$
|
39.99
|
|
|
Remaining contractual life in years
|
|
|
4.40
|
|
||
Aggregate intrinsic value in millions
|
$
|
322
|
|
|
|
Additional Information about Stock Options
|
|
|
|
||||||
In millions, except per share amounts
|
2018
|
2017
|
2016
|
||||||
Weighted-average fair value per share of options granted
|
$
|
15.38
|
|
$
|
14.44
|
|
$
|
10.95
|
|
Total compensation expense for stock option plans
|
$
|
68
|
|
$
|
37
|
|
$
|
32
|
|
Related tax benefit
|
$
|
15
|
|
$
|
14
|
|
$
|
12
|
|
Total amount of cash received from the exercise of options
|
$
|
112
|
|
$
|
310
|
|
$
|
312
|
|
Total intrinsic value of options exercised
1
|
$
|
160
|
|
$
|
286
|
|
$
|
153
|
|
Related tax benefit
|
$
|
36
|
|
$
|
106
|
|
$
|
57
|
|
RSU Awards
|
2018
|
||||
Shares in thousands
|
Shares
|
Grant Date
Fair Value
1
|
|||
Nonvested at Jan 1, 2018
|
13,346
|
|
$
|
50.71
|
|
Granted
|
2,022
|
|
$
|
71.46
|
|
Vested
|
(5,409
|
)
|
$
|
46.04
|
|
Canceled
|
(224
|
)
|
$
|
59.40
|
|
Nonvested at Dec 31, 2018
|
9,735
|
|
$
|
57.41
|
|
Additional Information about RSUs
|
|
|
|
||||||
In millions, except per share amounts
|
2018
|
2017
|
2016
|
||||||
Weighted-average fair value per share of RSUs granted
|
$
|
71.46
|
|
$
|
61.29
|
|
$
|
46.25
|
|
Total fair value of RSUs vested
|
$
|
382
|
|
$
|
179
|
|
$
|
166
|
|
Related tax benefit
|
$
|
86
|
|
$
|
66
|
|
$
|
61
|
|
Total compensation expense for RSU awards
|
$
|
144
|
|
$
|
178
|
|
$
|
97
|
|
Related tax benefit
|
$
|
32
|
|
$
|
66
|
|
$
|
36
|
|
PSU Awards
|
Target
Shares
Granted
1
|
Grant Date
Fair Value
2
|
||||
Shares in thousands
|
||||||
Year
|
Performance Period
|
|||||
2017
|
Sep 1, 2017 – Aug 31, 2019
|
232
|
|
$
|
71.16
|
|
2017
3
|
Jan 1, 2017 – Dec 31, 2019
|
1,728
|
|
$
|
81.99
|
|
2016
3
|
Jan 1, 2016 – Dec 31, 2018
|
2,283
|
|
$
|
52.68
|
|
1.
|
At the end of the performance period, the actual number of shares issued can range from
zero
to
200%
of target shares granted.
|
2.
|
Weighted-average per share.
|
3.
|
Converted to RSUs as a result of the Merger.
|
Additional Information about PSUs
|
|
|
|
||||||
In millions, except share amounts
|
2018
|
2017
|
2016
|
||||||
Total fair value of PSUs vested and delivered
1
|
$
|
—
|
|
$
|
202
|
|
$
|
103
|
|
Related tax benefit
|
$
|
—
|
|
$
|
75
|
|
$
|
38
|
|
Total compensation expense for PSU awards
|
$
|
12
|
|
$
|
106
|
|
$
|
125
|
|
Related tax benefit
|
$
|
3
|
|
$
|
39
|
|
$
|
46
|
|
Shares of PSUs settled in cash (in thousands)
2
|
—
|
|
616
|
|
861
|
|
|||
Total cash paid to settle PSUs
3
|
$
|
—
|
|
$
|
38
|
|
$
|
40
|
|
1.
|
Includes the fair value of shares vested in prior years and delivered in the reporting year.
|
2.
|
PSU awards vested in prior years and delivered in the reporting year.
|
3.
|
Cash paid to certain executive employees for PSU awards vested in prior periods and delivered in the reporting year, equal to the value of the stock award on the date of delivery.
|
Restricted Stock
|
Shares Issued
(in thousands)
|
Weighted-Average Fair Value
|
|||
Year
|
|||||
2018
|
36
|
|
$
|
62.82
|
|
2017
|
33
|
|
$
|
62.04
|
|
2016
|
32
|
|
$
|
50.55
|
|
Additional Information about Employee Stock Purchase Plan
|
|
|
|
||||||
In millions, except per share amounts
|
2018
|
2017
|
2016
|
||||||
Weighted-average fair value per share of purchase rights granted
|
$
|
—
|
|
$
|
10.70
|
|
$
|
3.40
|
|
Total compensation expense for ESPP
|
$
|
—
|
|
$
|
38
|
|
$
|
7
|
|
Related tax benefit
|
$
|
—
|
|
$
|
14
|
|
$
|
3
|
|
Total amount of cash received from the exercise of purchase rights
|
$
|
—
|
|
$
|
179
|
|
$
|
86
|
|
Total intrinsic value of purchase rights exercised
1
|
$
|
—
|
|
$
|
48
|
|
$
|
23
|
|
Related tax benefit
|
$
|
—
|
|
$
|
18
|
|
$
|
9
|
|
1.
|
Difference between the market price at exercise and the price paid by the employee to exercise the purchase rights.
|
Fair Value of Financial Instruments at Dec 31
|
2018
|
2017
|
||||||||||||||||||||||
In millions
|
Cost
|
Gain
|
Loss
|
Fair Value
|
Cost
|
Gain
|
Loss
|
Fair Value
|
||||||||||||||||
Cash equivalents
1
|
$
|
566
|
|
$
|
—
|
|
$
|
—
|
|
$
|
566
|
|
$
|
2,280
|
|
$
|
—
|
|
$
|
—
|
|
$
|
2,280
|
|
Marketable securities
|
$
|
100
|
|
$
|
—
|
|
$
|
—
|
|
$
|
100
|
|
$
|
4
|
|
$
|
—
|
|
$
|
—
|
|
$
|
4
|
|
Other investments:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Debt securities:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Government debt
2
|
$
|
714
|
|
$
|
9
|
|
$
|
(23
|
)
|
$
|
700
|
|
$
|
637
|
|
$
|
13
|
|
$
|
(11
|
)
|
$
|
639
|
|
Corporate bonds
|
1,026
|
|
20
|
|
(63
|
)
|
983
|
|
704
|
|
32
|
|
(3
|
)
|
733
|
|
||||||||
Total debt securities
|
$
|
1,740
|
|
$
|
29
|
|
$
|
(86
|
)
|
$
|
1,683
|
|
$
|
1,341
|
|
$
|
45
|
|
$
|
(14
|
)
|
$
|
1,372
|
|
Equity securities
3
|
16
|
|
1
|
|
(1
|
)
|
16
|
|
164
|
|
2
|
|
(26
|
)
|
140
|
|
||||||||
Total other investments
|
$
|
1,756
|
|
$
|
30
|
|
$
|
(87
|
)
|
$
|
1,699
|
|
$
|
1,505
|
|
$
|
47
|
|
$
|
(40
|
)
|
$
|
1,512
|
|
Total cash equivalents, marketable securities and other investments
|
$
|
2,422
|
|
$
|
30
|
|
$
|
(87
|
)
|
$
|
2,365
|
|
$
|
3,789
|
|
$
|
47
|
|
$
|
(40
|
)
|
$
|
3,796
|
|
Long-term debt including debt due within one year
4
|
$
|
(19,594
|
)
|
$
|
351
|
|
$
|
(971
|
)
|
$
|
(20,214
|
)
|
$
|
(20,517
|
)
|
$
|
6
|
|
$
|
(2,104
|
)
|
$
|
(22,615
|
)
|
Derivatives relating to:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rates
|
$
|
—
|
|
$
|
—
|
|
$
|
(64
|
)
|
$
|
(64
|
)
|
$
|
—
|
|
$
|
—
|
|
$
|
(4
|
)
|
$
|
(4
|
)
|
Foreign currency
|
—
|
|
120
|
|
(43
|
)
|
77
|
|
—
|
|
22
|
|
(112
|
)
|
(90
|
)
|
||||||||
Commodities
5
|
—
|
|
91
|
|
(178
|
)
|
(87
|
)
|
—
|
|
130
|
|
(256
|
)
|
(126
|
)
|
||||||||
Total derivatives
|
$
|
—
|
|
$
|
211
|
|
$
|
(285
|
)
|
$
|
(74
|
)
|
$
|
—
|
|
$
|
152
|
|
$
|
(372
|
)
|
$
|
(220
|
)
|
1.
|
Prior period amounts were updated to conform with the current year presentation.
|
2.
|
U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations.
|
3.
|
Equity securities with a readily determinable fair value. Presented in accordance with ASU 2016-01. See Notes
1
and
2
for additional information.
|
4.
|
Cost includes fair value hedge adjustments of
$18 million
at
December 31, 2018
and
$19 million
at
December 31, 2017
on
$2,290 million
of debt at
December 31, 2018
and
$2,390 million
of debt at
December 31, 2017
.
|
5.
|
Presented net of cash collateral where master netting arrangements allow.
|
Investing Results
1
|
|
|
|
||||||
In millions
|
2018
|
2017
|
2016
|
||||||
Proceeds from sales of available-for-sale securities
|
$
|
1,053
|
|
$
|
245
|
|
$
|
396
|
|
Gross realized gains
|
$
|
21
|
|
$
|
5
|
|
$
|
15
|
|
Gross realized losses
|
$
|
30
|
|
$
|
—
|
|
$
|
1
|
|
1.
|
Prior period amounts were updated to conform with the current year presentation as a result of the adoption of ASU 2016-01.
|
Temporarily Impaired Debt Securities at
Dec 31, 2018
|
Less than 12 months
|
12 months or more
|
Total
|
|||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value |
Unrealized
Losses |
Fair Value
|
Unrealized Losses
|
|||||||||||||
In millions
|
||||||||||||||||||
Government debt
1
|
$
|
287
|
|
$
|
(17
|
)
|
$
|
187
|
|
$
|
(6
|
)
|
$
|
474
|
|
$
|
(23
|
)
|
Corporate bonds
|
724
|
|
(58
|
)
|
64
|
|
(5
|
)
|
788
|
|
(63
|
)
|
||||||
Total temporarily impaired debt securities
|
$
|
1,011
|
|
$
|
(75
|
)
|
$
|
251
|
|
$
|
(11
|
)
|
$
|
1,262
|
|
$
|
(86
|
)
|
1.
|
U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities' obligations.
|
Temporarily Impaired Debt Securities at
Dec 31, 2017
|
Less than 12 months
|
12 months or more
|
Total
|
|||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value |
Unrealized
Losses |
Fair Value
|
Unrealized Losses
|
|||||||||||||
In millions
|
||||||||||||||||||
Government debt
1
|
$
|
295
|
|
$
|
(4
|
)
|
$
|
151
|
|
$
|
(7
|
)
|
$
|
446
|
|
$
|
(11
|
)
|
Corporate bonds
|
163
|
|
(2
|
)
|
19
|
|
(1
|
)
|
182
|
|
(3
|
)
|
||||||
Total temporarily impaired debt securities
|
$
|
458
|
|
$
|
(6
|
)
|
$
|
170
|
|
$
|
(8
|
)
|
$
|
628
|
|
$
|
(14
|
)
|
1.
|
U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities' obligations.
|
Notional Amounts - Net
|
Dec 31, 2018
|
Dec 31, 2017
1
|
||||
In millions
|
||||||
Derivatives designated as hedging instruments:
|
|
|
||||
Interest rate swaps
|
$
|
2,049
|
|
$
|
185
|
|
Foreign currency contracts
|
$
|
4,457
|
|
$
|
4,343
|
|
Derivatives not designated as hedging instruments:
|
|
|
||||
Interest rate swaps
|
$
|
5
|
|
$
|
—
|
|
Foreign currency contracts
|
$
|
19,285
|
|
$
|
12,041
|
|
1.
|
Prior period amounts were previously presented on a gross basis and have been updated to conform with the current year net presentation.
|
Commodity Notionals - Net
|
Dec 31, 2018
|
Dec 31, 2017
1
|
Notional Volume Unit
|
||
|
|||||
Derivatives designated as hedging instruments:
|
|
|
|
||
Hydrocarbon derivatives
|
39.9
|
|
71.3
|
|
million barrels of oil equivalent
|
Seed derivatives
|
—
|
|
3.9
|
|
million bushels
|
Derivatives not designated as hedging instruments:
|
|
|
|
||
Hydrocarbon derivatives
|
1.2
|
|
4.1
|
|
million barrels of oil equivalent
|
Power derivatives
|
73.9
|
|
—
|
|
thousands of megawatt hours
|
1.
|
Prior period amounts were previously presented on a gross basis and have been updated to conform with the current year net presentation.
|
Fair Value of Derivative Instruments
|
Dec 31, 2018
|
|||||||||
In millions
|
Balance Sheet Classification
|
Gross
|
Counterparty and Cash Collateral Netting
1
|
Net Amounts Included in the Consolidated Balance Sheets
|
||||||
Asset derivatives:
|
|
|
|
|
||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
||||||
Foreign currency contracts
|
Other current assets
|
$
|
98
|
|
$
|
(42
|
)
|
$
|
56
|
|
Commodity contracts
|
Other current assets
|
47
|
|
(13
|
)
|
34
|
|
|||
Commodity contracts
|
Deferred charges and other assets
|
18
|
|
(3
|
)
|
15
|
|
|||
Total
|
|
$
|
163
|
|
$
|
(58
|
)
|
$
|
105
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
||||||
Foreign currency contracts
|
Other current assets
|
$
|
128
|
|
$
|
(64
|
)
|
$
|
64
|
|
Commodity contracts
|
Other current assets
|
41
|
|
(1
|
)
|
40
|
|
|||
Commodity contracts
|
Deferred charges and other assets
|
4
|
|
(2
|
)
|
2
|
|
|||
Total
|
|
$
|
173
|
|
$
|
(67
|
)
|
$
|
106
|
|
Total asset derivatives
|
|
$
|
336
|
|
$
|
(125
|
)
|
$
|
211
|
|
|
|
|
|
|
||||||
Liability derivatives:
|
|
|
|
|
||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
||||||
Interest rate swaps
|
Other noncurrent obligations
|
$
|
64
|
|
$
|
—
|
|
$
|
64
|
|
Foreign currency contracts
|
Accrued and other current liabilities
|
46
|
|
(42
|
)
|
4
|
|
|||
Commodity contracts
|
Accrued and other current liabilities
|
111
|
|
(18
|
)
|
93
|
|
|||
Commodity contracts
|
Other noncurrent obligations
|
86
|
|
(9
|
)
|
77
|
|
|||
Total
|
|
$
|
307
|
|
$
|
(69
|
)
|
$
|
238
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
||||||
Foreign currency contracts
|
Accrued and other current liabilities
|
$
|
103
|
|
$
|
(64
|
)
|
$
|
39
|
|
Commodity contracts
|
Accrued and other current liabilities
|
7
|
|
(4
|
)
|
3
|
|
|||
Commodity contracts
|
Other noncurrent obligations
|
8
|
|
(3
|
)
|
5
|
|
|||
Total
|
|
$
|
118
|
|
$
|
(71
|
)
|
$
|
47
|
|
Total liability derivatives
|
|
$
|
425
|
|
$
|
(140
|
)
|
$
|
285
|
|
1.
|
Counterparty and cash collateral amounts represent the estimated net settlement amount when applying netting and set-off rights included in master netting arrangements between Dow and its counterparties and the payable or receivable for cash collateral held or placed with the same counterparty.
|
Fair Value of Derivative Instruments
|
Dec 31, 2017
|
|||||||||
In millions
|
Balance Sheet Classification
|
Gross
|
Counterparty and Cash Collateral Netting
1
|
Net Amounts Included in the Consolidated Balance Sheets
|
||||||
Asset derivatives:
|
|
|
|
|
||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
||||||
Foreign currency contracts
|
Other current assets
|
$
|
51
|
|
$
|
(46
|
)
|
$
|
5
|
|
Commodity contracts
|
Other current assets
|
20
|
|
(4
|
)
|
16
|
|
|||
Commodity contracts
|
Deferred charges and other assets
|
70
|
|
(5
|
)
|
65
|
|
|||
Total
|
|
$
|
141
|
|
$
|
(55
|
)
|
$
|
86
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
||||||
Foreign currency contracts
|
Other current assets
|
$
|
75
|
|
$
|
(58
|
)
|
$
|
17
|
|
Commodity contracts
|
Other current assets
|
50
|
|
(5
|
)
|
45
|
|
|||
Commodity contracts
|
Deferred charges and other assets
|
7
|
|
(3
|
)
|
4
|
|
|||
Total
|
|
$
|
132
|
|
$
|
(66
|
)
|
$
|
66
|
|
Total asset derivatives
|
|
$
|
273
|
|
$
|
(121
|
)
|
$
|
152
|
|
|
|
|
|
|
||||||
Liability derivatives:
|
|
|
|
|
||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
||||||
Interest rate swaps
|
Other noncurrent obligations
|
$
|
4
|
|
$
|
—
|
|
$
|
4
|
|
Foreign currency contracts
|
Accrued and other current liabilities
|
109
|
|
(46
|
)
|
63
|
|
|||
Commodity contracts
|
Accrued and other current liabilities
|
96
|
|
(15
|
)
|
81
|
|
|||
Commodity contracts
|
Other noncurrent obligations
|
143
|
|
(12
|
)
|
131
|
|
|||
Total
|
|
$
|
352
|
|
$
|
(73
|
)
|
$
|
279
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
||||||
Foreign currency contracts
|
Accrued and other current liabilities
|
$
|
107
|
|
$
|
(58
|
)
|
$
|
49
|
|
Commodity contracts
|
Accrued and other current liabilities
|
45
|
|
(6
|
)
|
39
|
|
|||
Commodity contracts
|
Other noncurrent obligations
|
8
|
|
(3
|
)
|
5
|
|
|||
Total
|
|
$
|
160
|
|
$
|
(67
|
)
|
$
|
93
|
|
Total liability derivatives
|
|
$
|
512
|
|
$
|
(140
|
)
|
$
|
372
|
|
1.
|
Counterparty and cash collateral amounts represent the estimated net settlement amount when applying netting and set-off rights included in master netting arrangements between Dow and its counterparties and the payable or receivable for cash collateral held or placed with the same counterparty.
|
Effect of Derivative Instruments
|
Amount of gain (loss) recognized in OCI
1
|
Amount of gain (loss) recognized in income
2
|
|
||||||||||||||||
In millions
|
2018
|
2017
|
2016
|
2018
|
2017
|
2016
|
Income Statement Classification
|
||||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||||||||
Fair value hedges:
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(2
|
)
|
$
|
—
|
|
Interest expense and amortization of debt discount
3
|
Cash flow hedges:
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
26
|
|
2
|
|
2
|
|
(3
|
)
|
4
|
|
6
|
|
Interest expense and amortization of debt discount
|
||||||
Foreign currency contracts
|
19
|
|
(30
|
)
|
8
|
|
(18
|
)
|
7
|
|
(5
|
)
|
Cost of sales
|
||||||
Foreign currency contracts
|
(3
|
)
|
(5
|
)
|
25
|
|
—
|
|
(17
|
)
|
(13
|
)
|
Sundry income (expense) - net
|
||||||
Commodity contracts
|
(45
|
)
|
35
|
|
55
|
|
(69
|
)
|
7
|
|
(28
|
)
|
Cost of sales
|
||||||
Net investment hedges:
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency contracts
|
116
|
|
(73
|
)
|
5
|
|
—
|
|
—
|
|
—
|
|
|
||||||
Total derivatives designated as hedging instruments
|
$
|
113
|
|
$
|
(71
|
)
|
$
|
95
|
|
$
|
(90
|
)
|
$
|
(1
|
)
|
$
|
(40
|
)
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency contracts
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
101
|
|
$
|
(289
|
)
|
$
|
(180
|
)
|
Sundry income (expense) - net
|
Commodity contracts
|
—
|
|
—
|
|
—
|
|
(12
|
)
|
(9
|
)
|
6
|
|
Cost of sales
|
||||||
Total derivatives not designated as hedging instruments
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
89
|
|
$
|
(298
|
)
|
$
|
(174
|
)
|
|
Total derivatives
|
$
|
113
|
|
$
|
(71
|
)
|
$
|
95
|
|
$
|
(1
|
)
|
$
|
(299
|
)
|
$
|
(214
|
)
|
|
1.
|
OCI is defined as other comprehensive income (loss).
|
2.
|
Pretax amounts.
|
3.
|
Gain (loss) recognized in income of derivatives is offset by gain (loss) recognized in income of the hedged item.
|
Basis of Fair Value Measurements on a Recurring Basis
|
Dec 31, 2018
|
Dec 31, 2017
|
||||||||||||||||||||||
In millions
|
Level 1
|
Level 2
|
Level 3
|
Total
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Assets at fair value:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash equivalents
1
|
$
|
—
|
|
$
|
566
|
|
$
|
—
|
|
$
|
566
|
|
$
|
—
|
|
$
|
2,280
|
|
$
|
—
|
|
$
|
2,280
|
|
Marketable securities
|
—
|
|
100
|
|
—
|
|
100
|
|
—
|
|
4
|
|
—
|
|
4
|
|
||||||||
Interests in trade accounts receivable conduits
2
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
677
|
|
677
|
|
||||||||
Equity securities
3
|
16
|
|
—
|
|
—
|
|
16
|
|
88
|
|
52
|
|
—
|
|
140
|
|
||||||||
Debt securities:
3
|
|
|
|
|
|
|
|
|
||||||||||||||||
Government debt
4
|
—
|
|
700
|
|
—
|
|
700
|
|
—
|
|
639
|
|
—
|
|
639
|
|
||||||||
Corporate bonds
|
—
|
|
983
|
|
—
|
|
983
|
|
—
|
|
733
|
|
—
|
|
733
|
|
||||||||
Derivatives relating to:
5
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign currency
|
—
|
|
226
|
|
—
|
|
226
|
|
—
|
|
126
|
|
—
|
|
126
|
|
||||||||
Commodities
|
17
|
|
93
|
|
—
|
|
110
|
|
47
|
|
100
|
|
—
|
|
147
|
|
||||||||
Total assets at fair value
|
$
|
33
|
|
$
|
2,668
|
|
$
|
—
|
|
$
|
2,701
|
|
$
|
135
|
|
$
|
3,934
|
|
$
|
677
|
|
$
|
4,746
|
|
Liabilities at fair value:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Long-term debt including debt due within one year
6
|
$
|
—
|
|
$
|
20,214
|
|
$
|
—
|
|
$
|
20,214
|
|
$
|
—
|
|
$
|
22,615
|
|
$
|
—
|
|
$
|
22,615
|
|
Derivatives relating to:
5
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rates
|
—
|
|
64
|
|
—
|
|
64
|
|
—
|
|
4
|
|
—
|
|
4
|
|
||||||||
Foreign currency
|
—
|
|
149
|
|
—
|
|
149
|
|
—
|
|
216
|
|
—
|
|
216
|
|
||||||||
Commodities
|
23
|
|
189
|
|
—
|
|
212
|
|
31
|
|
261
|
|
—
|
|
292
|
|
||||||||
Total liabilities at fair value
|
$
|
23
|
|
$
|
20,616
|
|
$
|
—
|
|
$
|
20,639
|
|
$
|
31
|
|
$
|
23,096
|
|
$
|
—
|
|
$
|
23,127
|
|
1.
|
Treasury bills, time deposits, and money market funds included in "Cash and cash equivalents" in the consolidated balance sheets and held at amortized cost, which approximates fair value.
|
1.
|
Included in "Accounts and notes receivable – Other" in the consolidated balance sheets.
|
2.
|
Included in "Selling, general and administrative expenses" in the consolidated statements of income.
|
3.
|
Presented in accordance with ASU 2016-15. See Notes
1
and
2
for additional information. In connection with the review and implementation of ASU 2016-15, the Company also changed the prior year value of “Purchases” and "Settlements" due to additional interpretive guidance of the required method for calculating the cash received from beneficial interests in the conduits, including additional guidance from the SEC's Office of the Chief Accountant issued in the third quarter of 2018 that indicated an entity must evaluate daily transaction activity to calculate the value of cash received from beneficial interests in conduits.
|
4.
|
Includes noncash transactions of
$23 million
for the year ended
December 31, 2018
.
|
Basis of Fair Value Measurements on a Nonrecurring Basis at Dec 31
|
(Level 1)
|
(Level 3)
|
Total Losses
|
||||||
In millions
|
|||||||||
2018
|
|
|
|
||||||
Assets at fair value:
|
|
|
|
||||||
Long-lived assets and other assets
|
$
|
—
|
|
$
|
17
|
|
$
|
(261
|
)
|
2017
|
|
|
|
||||||
Assets at fair value:
|
|
|
|
||||||
Long-lived assets, intangible assets, other assets and equity method investments
|
$
|
—
|
|
$
|
61
|
|
$
|
(1,226
|
)
|
Goodwill
|
$
|
—
|
|
$
|
—
|
|
$
|
(1,491
|
)
|
2016
|
|
|
|
||||||
Assets at fair value:
|
|
|
|
||||||
Long-lived assets, other assets and equity method investments
|
$
|
46
|
|
$
|
—
|
|
$
|
(296
|
)
|
1.
|
All assets were restricted at
December 31, 2018
and
2017
.
|
2.
|
All liabilities were nonrecourse at
December 31, 2018
and
2017
.
|
Balances Due To or Due From DuPont and its Affiliates
|
Dec 31, 2018
|
Dec 31, 2017
|
||||
In millions
|
||||||
Accounts and notes receivable - Other
|
$
|
288
|
|
$
|
26
|
|
Accounts payable - Other
|
$
|
201
|
|
$
|
12
|
|
•
|
Realignment of the HSC Group joint ventures (DC HSC Holdings LLC and Hemlock Semiconductor L.L.C.) from the Consumer Solutions principal product group to the Electronics & Imaging principal product group.
|
•
|
Realignment of certain cellulosics product lines from the Nutrition & Health principal product group to the Consumer Solutions principal product group.
|
•
|
Certain roofing products were realigned from the Safety & Construction principal product group to Corporate.
|
•
|
Realignment of the previously divested Epoxy and Chlorinated Organics principal product groups to Corporate.
|
•
|
The Construction Chemicals principal product group was combined with the Polyurethanes & CAV principal product group.
|
•
|
Certain product lines associated with the oil and gas industry were realigned from the Industrial Solutions principal product group to the Polyurethanes & CAV principal product group.
|
Geographic Region Information
|
United
States
|
EMEA
1
|
Rest of
World
|
Total
|
||||||||
In millions
|
||||||||||||
2018
|
|
|
|
|
||||||||
Sales to external customers
|
$
|
20,008
|
|
$
|
18,148
|
|
$
|
22,122
|
|
$
|
60,278
|
|
Long-lived assets
|
$
|
15,782
|
|
$
|
2,921
|
|
$
|
4,959
|
|
$
|
23,662
|
|
2017
|
|
|
|
|
||||||||
Sales to external customers
|
$
|
19,166
|
|
$
|
16,393
|
|
$
|
19,949
|
|
$
|
55,508
|
|
Long-lived assets
|
$
|
15,715
|
|
$
|
2,999
|
|
$
|
5,098
|
|
$
|
23,812
|
|
2016
|
|
|
|
|
||||||||
Sales to external customers
|
$
|
16,681
|
|
$
|
13,633
|
|
$
|
17,844
|
|
$
|
48,158
|
|
Long-lived assets
|
$
|
14,812
|
|
$
|
2,708
|
|
$
|
5,966
|
|
$
|
23,486
|
|
1.
|
Europe, Middle East and Africa.
|
2018
|
|
|
|
|
|
||||||||||
In millions, except per share amounts (Unaudited)
|
1st
|
2nd
|
3rd
|
4th
|
Year
|
||||||||||
Net sales
|
$
|
14,899
|
|
$
|
15,793
|
|
$
|
14,976
|
|
$
|
14,610
|
|
$
|
60,278
|
|
Cost of sales
|
$
|
11,552
|
|
$
|
12,400
|
|
$
|
11,933
|
|
$
|
11,820
|
|
$
|
47,705
|
|
Gross margin
|
$
|
3,347
|
|
$
|
3,393
|
|
$
|
3,043
|
|
$
|
2,790
|
|
$
|
12,573
|
|
Restructuring, goodwill impairment and asset related charges - net
1
|
$
|
165
|
|
$
|
98
|
|
$
|
108
|
|
$
|
249
|
|
$
|
620
|
|
Integration and separation costs
|
$
|
202
|
|
$
|
231
|
|
$
|
278
|
|
$
|
333
|
|
$
|
1,044
|
|
Net income
2
|
$
|
1,377
|
|
$
|
1,310
|
|
$
|
1,036
|
|
$
|
910
|
|
$
|
4,633
|
|
Net income attributable to The Dow Chemical Company
|
$
|
1,342
|
|
$
|
1,279
|
|
$
|
1,000
|
|
$
|
878
|
|
$
|
4,499
|
|
1.
|
See Note
7
for additional information.
|
2.
|
Includes tax adjustments related to The Act, enacted on December 22, 2017. See Note
9
for additional information.
|
2017
|
|
|
|
|
|
||||||||||
In millions, except per share amounts (Unaudited)
|
1st
|
2nd
|
3rd
|
4th
|
Year
|
||||||||||
Net sales
|
$
|
13,230
|
|
$
|
13,834
|
|
$
|
13,633
|
|
$
|
14,811
|
|
$
|
55,508
|
|
Cost of sales
1
|
$
|
10,194
|
|
$
|
10,761
|
|
$
|
10,663
|
|
$
|
11,994
|
|
$
|
43,612
|
|
Gross margin
1
|
$
|
3,036
|
|
$
|
3,073
|
|
$
|
2,970
|
|
$
|
2,817
|
|
$
|
11,896
|
|
Restructuring, goodwill impairment and asset related charges - net
2
|
$
|
(1
|
)
|
$
|
(12
|
)
|
$
|
139
|
|
$
|
2,974
|
|
$
|
3,100
|
|
Integration and separation costs
|
$
|
109
|
|
$
|
136
|
|
$
|
283
|
|
$
|
258
|
|
$
|
786
|
|
Net income (loss)
3
|
$
|
915
|
|
$
|
1,359
|
|
$
|
805
|
|
$
|
(2,484
|
)
|
$
|
595
|
|
Net income (loss) attributable to The Dow Chemical Company
|
$
|
888
|
|
$
|
1,321
|
|
$
|
783
|
|
$
|
(2,526
|
)
|
$
|
466
|
|
Earnings per common share - basic
4
|
$
|
0.74
|
|
$
|
1.08
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|||
Earnings per common share - diluted
4
|
$
|
0.72
|
|
$
|
1.07
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|||
Dividends declared per share of common stock
4, 5
|
$
|
0.46
|
|
$
|
0.46
|
|
$
|
0.46
|
|
N/A
|
|
$
|
1.38
|
|
|
Market price range of common stock:
4, 6
|
|
|
|
|
|
||||||||||
High
|
$
|
65.00
|
|
$
|
65.26
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|||
Low
|
$
|
57.09
|
|
$
|
60.20
|
|
N/A
|
|
N/A
|
|
N/A
|
|
1.
|
Previously reported amounts have been updated to reflect the impact of adoption of ASU 2017-07.
|
2.
|
See Note
7
for additional information.
|
3.
|
See Notes
6
,
8
,
9
,
16
and
19
for additional information on items materially impacting "Net income (loss)." The fourth quarter of 2017 included: tax adjustments related to The Act, enacted on December 22, 2017; a gain related to the DAS Divested Ag Business; and, a charge related to payment of plan obligations to certain participants of a U.S. non-qualified pension plan. The third quarter of 2017 included a gain related to the sale of the Company's EAA Business. The second quarter of 2017 included a gain related to the Nova patent infringement award. The first quarter of 2017 included a loss related to the Bayer CropScience arbitration matter.
|
4.
|
Effective with the Merger, all issued and outstanding shares of the Company's common stock are owned solely by its parent, DowDuPont Inc.
|
5.
|
Dow declared its last dividend on common stock in July 2017.
|
6.
|
Composite price as reported by the New York Stock Exchange.
|
•
|
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
|
•
|
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and Directors of the Company; and
|
•
|
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the consolidated financial statements.
|
/s/ JIM FITTERLING
|
|
/s/ HOWARD UNGERLEIDER
|
Jim Fitterling
|
|
Howard Ungerleider
|
Director and Chief Executive Officer
|
|
Director, President and Chief Financial Officer
|
|
|
|
|
|
|
/s/ RONALD C. EDMONDS
|
|
|
Ronald C. Edmonds
|
|
|
Controller and Vice President of Controllers and Tax
|
|
|
/
S
/ DELOITTE & TOUCHE LLP
|
Deloitte & Touche LLP
|
Midland, Michigan
|
February 11, 2019
|
Type of Fees
|
|
|
||||
In thousands
|
2018
|
2017
|
||||
Audit Fees
1
|
$
|
26,199
|
|
$
|
25,792
|
|
Audit-Related Fees
2
|
6,976
|
|
8,062
|
|
||
Tax Fees
3
|
600
|
|
1,729
|
|
||
Total
|
$
|
33,775
|
|
$
|
35,583
|
|
1.
|
The aggregate fees billed for the integrated audit of the Company's annual financial statements and internal control over financial reporting, the reviews of the financial statements in quarterly reports on Form 10-Q, comfort letters, consents, statutory audits, and other regulatory filings.
|
2.
|
The aggregate fees billed primarily for audits of carve-out financial statements, assessment of controls relating to outsourced services, audits and reviews supporting divestiture activities, and agreed-upon procedures engagements.
|
3.
|
The aggregate fees billed primarily for preparation of expatriate employees' tax returns and related compliance services.
|
(a)
|
The following documents are filed as part of this report:
|
(1)
|
The Company’s
2018
Consolidated Financial Statements and the Report of Independent Registered Public Accounting Firm are included in Part II, Item 8. Financial Statements and Supplementary Data.
|
(2)
|
Financial Statement Schedules – The following Financial Statement Schedule should be read in conjunction with the Consolidated Financial Statements and Report of Independent Registered Public Accounting Firm included in Part II, Item 8. Financial Statements and Supplementary Data:
|
Schedule II
|
Valuation and Qualifying Accounts
|
(3)
|
The following exhibits are filed with or incorporated by reference into this Annual Report on Form 10-K:
|
Exhibit No.
|
Description of Exhibit
|
2.1
|
2.1.1
|
2.2
|
2.2.1
|
2.3
|
2.3.1
|
3.1
|
3.2
|
4.1
|
4.1.1
|
4.1.2
|
4.1.3
|
4.2
|
4.2.1
|
4.3
|
The Dow Chemical Company agrees to provide the SEC, on request, copies of all other such indentures and instruments that define the rights of holders of long-term debt of The Dow Chemical Company and its consolidated subsidiaries, pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K.
|
10.1
|
10.1.2*
|
10.2
|
10.3
|
10.4
|
10.5
|
10.5.1
|
10.6
|
10.6.1*
|
10.7
|
10.8
|
10.9
|
10.10
|
21*
|
23.1*
|
23.2*
|
31.1*
|
31.2*
|
32.1*
|
32.2*
|
99.1
|
101.INS
|
XBRL Instance Document.
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
The Dow Chemical Company and Subsidiaries
|
Schedule II
|
|
Valuation and Qualifying Accounts
|
|
(In millions) For the years ended Dec 31,
|
2018
|
2017
|
2016
|
||||||
Accounts Receivable - Allowance for Doubtful Receivables
|
|
|
|
||||||
Balance at beginning of year
|
$
|
117
|
|
$
|
110
|
|
$
|
94
|
|
Additions charged to expenses
|
23
|
|
33
|
|
31
|
|
|||
Additions charged to other accounts
1
|
4
|
|
3
|
|
—
|
|
|||
Deductions from reserves
2
|
(38
|
)
|
(29
|
)
|
(15
|
)
|
|||
Balance at end of year
|
$
|
106
|
|
$
|
117
|
|
$
|
110
|
|
Inventory - Obsolescence Reserve
|
|
|
|
||||||
Balance at beginning of year
|
$
|
115
|
|
$
|
123
|
|
$
|
152
|
|
Additions charged to expenses
|
87
|
|
40
|
|
29
|
|
|||
Deductions from reserves
3
|
(55
|
)
|
(48
|
)
|
(58
|
)
|
|||
Balance at end of year
|
$
|
147
|
|
$
|
115
|
|
$
|
123
|
|
Reserves for Other Investments and Noncurrent Receivables
|
|
|
|
||||||
Balance at beginning of year
|
$
|
437
|
|
$
|
358
|
|
$
|
494
|
|
Additions charged to expenses
4
|
44
|
|
83
|
|
153
|
|
|||
Deductions from reserves
5
|
(16
|
)
|
(4
|
)
|
(289
|
)
|
|||
Balance at end of year
|
$
|
465
|
|
$
|
437
|
|
$
|
358
|
|
Deferred Tax Assets - Valuation Allowance
|
|
|
|
||||||
Balance at beginning of year
|
$
|
1,371
|
|
$
|
1,061
|
|
$
|
1,000
|
|
Additions charged to expenses
|
161
|
|
370
|
|
155
|
|
|||
Deductions from reserves
|
(212
|
)
|
(60
|
)
|
(94
|
)
|
|||
Balance at end of year
|
$
|
1,320
|
|
$
|
1,371
|
|
$
|
1,061
|
|
1.
|
Additions to allowance for doubtful accounts charged to other accounts were classified as "Accounts and notes receivable - Other" in the consolidated balance sheets. These reserves relate to the Company's sale of trade accounts receivable. Anticipated credit losses in the portfolio of receivables sold were used to fair value the Company's interests held in trade accounts receivable conduits. See Notes
14
and
22
to the Consolidated Financial Statements for further information.
|
2.
|
Deductions include write-offs, recoveries, currency translation adjustment and other miscellaneous items.
|
3.
|
Deductions include disposals and currency translation adjustments.
|
4.
|
In 2016, additions to reserves for "Other investments and noncurrent receivables" charged to costs and expenses include
$143 million
related to the Company's investment in AgroFresh Solutions, Inc. See Note
7
to the Consolidated Financial Statements for further information.
|
5.
|
In 2016, deductions from reserves for "Other investments and noncurrent receivables" include
$237 million
related to the Dow Silicones ownership restructure. See Note
5
to the Consolidated Financial Statements for further information on the Dow Silicones ownership restructure.
|
THE DOW CHEMICAL COMPANY
|
|
|
|
By
|
/s/ RONALD C. EDMONDS
|
|
Ronald C. Edmonds, Controller and Vice President of Controllers and Tax
|
Date
|
February 11, 2019
|
|
|
|
|
|
By
|
/s/ RONALD C. EDMONDS
|
|
By
|
/s/ HOWARD UNGERLEIDER
|
|
Ronald C. Edmonds, Controller and Vice President of Controllers and Tax
|
|
|
Howard Ungerleider, Director, President and Chief Financial Officer
|
Date
|
February 11, 2019
|
|
Date
|
February 11, 2019
|
|
|
|
|
|
By
|
/s/ JIM FITTERLING
|
|
|
|
|
Jim Fitterling, Director and Chief Executive Officer
|
|
|
|
Date
|
February 11, 2019
|
|
|
|
The Dow Chemical Company and Subsidiaries
|
Trademark Listing
|
1.
|
Article I is hereby amended to add the following new definitions thereto, and all definitions are hereby renumbered accordingly:
|
2.
|
Article III of the Plan is hereby amended to add the following new Section 3.6 to the end thereof:
|
/s/ BRYAN JENDRETZKE
|
|
|
Bryan Jendretzke
|
|
|
Global Benefits Director
|
|
|
The Dow Chemical Company
|
|
|
|
|
|
Reviewed by Plan Administrator:
|
|
/s/ MARIA CURRERI
|
|
|
Maria Curreri
|
|
|
|
|
|
|
Reviewed by Legal Department:
|
|
/s/ BRITA JOHNSON
|
|
|
Brita Johnson
|
/s/ BRYAN JENDRETZKE
|
|
|
Bryan Jendretzke
|
|
|
Global Benefits Director
|
|
|
The Dow Chemical Company
|
|
|
|
|
|
Reviewed by Plan Administrator:
|
|
/s/ MARIA CURRERI
|
|
|
Maria Curreri
|
|
|
|
|
|
|
Reviewed by Legal Department:
|
|
/s/ BRITA JOHNSON
|
|
|
Brita Johnson
|
|
|
|
|
|
Subsidiaries of The Dow Chemical Company
|
EXHIBIT 21
|
||||||||||||
|
|
|
|
|
At December 31, 2018
|
|
||||||||||||
|
Location*
|
|||||||||||||||||
This list includes companies for which the effective ownership by The Dow Chemical Company is 50 percent or more.
|
||||||||||||||||||
The Dow Chemical Company
|
Delaware
|
|||||||||||||||||
|
AM Robin LLC
|
Delaware
|
||||||||||||||||
|
American Mortell Corporation
|
Texas
|
||||||||||||||||
|
|
Mortell Company
|
Delaware
|
|||||||||||||||
|
Arabian Chemical Company (Latex) Ltd. (1)
|
Saudi Arabia
|
||||||||||||||||
|
Arabian Chemical Company (Polystyrene) Limited (1)
|
Saudi Arabia
|
||||||||||||||||
|
Battleground Water Company
|
Texas
|
||||||||||||||||
|
Centen Ag LLC
|
Delaware
|
||||||||||||||||
|
|
Dow AgroSciences LLC
|
Delaware
|
|||||||||||||||
|
|
Mycogen LLC
|
California
|
|||||||||||||||
|
|
|
Dow AgroSciences LLC
|
Delaware
|
||||||||||||||
|
|
|
|
DAS Agricultural Investment Holding Company Ltd.
|
Mauritius
|
|||||||||||||
|
|
|
|
|
Dow AgroSciences (China) Company Limited
|
China
|
||||||||||||
|
|
|
|
Dow AgroSciences Agricultural Products Limited
|
Mauritius
|
|||||||||||||
|
|
|
|
|
Dow AgroSciences Singapore Pte. Ltd.
|
Singapore
|
||||||||||||
|
|
|
|
|
|
Dow AgroSciences India Pvt. Ltd.
|
India
|
|||||||||||
|
|
|
|
|
|
|
DDP Speciality Products India Private Limited
|
India
|
||||||||||
|
|
|
|
|
|
PT Dow AgroSciences Commerce Indonesia
|
Indonesia
|
|||||||||||
|
|
|
|
|
|
PT Dow AgroSciences Indonesia
|
Indonesia
|
|||||||||||
|
|
|
|
Dow AgroSciences B.V.
|
Netherlands
|
|||||||||||||
|
|
|
|
|
Ambito DAS S.A. (1)
|
Argentina
|
||||||||||||
|
|
|
|
|
Cal/West Seeds S.R.L.
|
Argentina
|
||||||||||||
|
|
|
|
|
ChacoDAS S.A. (1)
|
Argentina
|
||||||||||||
|
|
|
|
|
Corteva Finance Company B.V.
|
Netherlands
|
||||||||||||
|
|
|
|
|
|
DDP Agro US Holding LLC
|
Delaware
|
|||||||||||
|
|
|
|
|
|
|
DDP Agro Switzerland Holding GmbH
|
Switzerland
|
||||||||||
|
|
|
|
|
|
|
|
DDP AgroSciences Switzerland GmbH
|
Switzerland
|
|||||||||
|
|
|
|
|
|
|
|
|
DDP AgroSciences S.R.L.
|
Peru
|
||||||||
|
|
|
|
|
|
|
|
|
Dow AgroSciences Argentina S.R.L.
|
Argentina
|
||||||||
|
|
|
|
|
|
|
|
Dow AgroSciences Switzerland S.A.
|
Switzerland
|
|||||||||
|
|
|
|
|
|
|
|
Dow AgroSciences Argentina S.R.L.
|
Argentina
|
|||||||||
|
|
|
|
|
|
|
|
|
DasAgro Uruguay S.A.
|
Uruguay
|
||||||||
|
|
|
|
|
|
|
|
|
Dow AgroSciences Bolivia S.A.
|
Bolivia
|
||||||||
|
|
|
|
|
|
|
|
|
Dow Agrosciences Chile S.A.
|
Chile
|
||||||||
|
|
|
|
|
|
|
|
|
Dow AgroSciences Paraguay S.A.
|
Paraguay
|
||||||||
|
|
|
|
|
DasAgro Uruguay S.A.
|
Uruguay
|
||||||||||||
|
|
|
|
|
Daser Agro S.A. (1)
|
Argentina
|
||||||||||||
|
|
|
|
|
DDP Agro Morocco SARL
|
Morocco
|
||||||||||||
|
|
|
|
|
DDP AgroSciences Kenya Limited
|
Kenya
|
||||||||||||
|
|
|
|
|
DDP AgroSciences Nigeria Limted
|
Nigeria
|
||||||||||||
|
|
|
|
|
DDP AgroSciences S.R.L.
|
Peru
|
||||||||||||
|
|
|
|
|
Desab S.A. (1)
|
Argentina
|
||||||||||||
|
|
|
|
|
Dow AgroSciences (Jiangsu) Co., Ltd.
|
China
|
||||||||||||
|
|
|
|
|
Dow AgroSciences A.S.
|
Turkey
|
||||||||||||
|
|
|
|
|
Dow AgroSciences Asia Sdn. Bhd.
|
Malaysia
|
||||||||||||
|
|
|
|
|
Dow AgroSciences Australia Limited
|
Australia
|
||||||||||||
|
|
|
|
|
Dow AgroSciences Bolivia S.A.
|
Bolivia
|
||||||||||||
|
|
|
|
|
Dow AgroSciences Canada Inc.
|
Canada
|
||||||||||||
|
|
|
|
|
Dow AgroSciences Chile S.A.
|
Chile
|
|
|
|
|
|
Subsidiaries of The Dow Chemical Company
|
EXHIBIT 21
|
||||||||||||
|
|
|
|
|
At December 31, 2018
|
|
||||||||||||
|
Location*
|
|||||||||||||||||
This list includes companies for which the effective ownership by The Dow Chemical Company is 50 percent or more.
|
||||||||||||||||||
|
|
|
|
|
Dow AgroSciences Costa Rica S.A.
|
Costa Rica
|
||||||||||||
|
|
|
|
|
Dow AgroSciences Danmark A/S
|
Denmark
|
||||||||||||
|
|
|
|
|
Dow AgroSciences de Colombia S.A.
|
Colombia
|
||||||||||||
|
|
|
|
|
Dow AgroSciences de Mexico S.A. de C.V.
|
Mexico
|
||||||||||||
|
|
|
|
|
Dow AgroSciences Export S.A.S.
|
France
|
||||||||||||
|
|
|
|
|
Dow AgroSciences GmbH
|
Germany
|
||||||||||||
|
|
|
|
|
Dow AgroSciences Guatemala S.A.
|
Guatemala
|
||||||||||||
|
|
|
|
|
Dow AgroSciences Iberica S.A.
|
Spain
|
||||||||||||
|
|
|
|
|
Dow AgroSciences Italia s.r.l.
|
Italy
|
||||||||||||
|
|
|
|
|
Dow AgroSciences Japan Limited
|
Japan
|
||||||||||||
|
|
|
|
|
Dow AgroSciences Limited
|
United Kingdom
|
||||||||||||
|
|
|
|
|
|
MSTG Company Limited
|
United Kingdom
|
|||||||||||
|
|
|
|
|
Dow AgroSciences Lithuania UAB
|
Lithuania
|
||||||||||||
|
|
|
|
|
Dow AgroSciences (Malaysia) Sdn Bhd
|
Malaysia
|
||||||||||||
|
|
|
|
|
Dow AgroSciences (NZ) Limited
|
New Zealand
|
||||||||||||
|
|
|
|
|
|
NZ Tulip Limited
|
New Zealand
|
|||||||||||
|
|
|
|
|
Dow AgroSciences OOO
|
Russia
|
||||||||||||
|
|
|
|
|
Dow AgroSciences Pacific Limited
|
Hong Kong
|
||||||||||||
|
|
|
|
|
|
PT Dow AgroSciences Indonesia
|
Indonesia
|
|||||||||||
|
|
|
|
|
|
|
PT Dow AgroSciences Commerce Indonesia
|
Indonesia
|
||||||||||
|
|
|
|
|
Dow AgroSciences Paraguay S.A.
|
Paraguay
|
||||||||||||
|
|
|
|
|
|
Dow AgroSciences Bolivia S.A.
|
Bolivia
|
|||||||||||
|
|
|
|
|
Dow AgroSciences Polska Sp. z o.o.
|
Poland
|
||||||||||||
|
|
|
|
|
Dow AgroSciences S.A.S.
|
France
|
||||||||||||
|
|
|
|
|
|
Dow AgroSciences Distribution S.A.S.
|
France
|
|||||||||||
|
|
|
|
|
Dow AgroSciences s.r.o.
|
Czech Republic
|
||||||||||||
|
|
|
|
|
Dow AgroSciences Sverige A/B
|
Sweden
|
||||||||||||
|
|
|
|
|
Dow AgroSciences Taiwan Ltd.
|
Taiwan
|
||||||||||||
|
|
|
|
|
Dow AgroSciences Technology GmbH
|
Switzerland
|
||||||||||||
|
|
|
|
|
|
DDP Agro Morocco SARL
|
Morocco
|
|||||||||||
|
|
|
|
|
|
DDP AgroSciences Nigeria Limted
|
Nigeria
|
|||||||||||
|
|
|
|
|
|
Dow AgroSciences de Colombia S.A.
|
Colombia
|
|||||||||||
|
|
|
|
|
|
Dow AgroSciences Switzerland S.A.
|
Switzerland
|
|||||||||||
|
|
|
|
|
|
|
DDP Agro Netherlands Holding B.V.
|
Netherlands
|
||||||||||
|
|
|
|
|
|
|
|
Coodetec Desenvolvimento, Producao e Comercializacao Agricola Ltda.
|
Brazil
|
|||||||||
|
|
|
|
|
|
|
|
Dow AgroSciences de Colombia S.A.
|
Colombia
|
|||||||||
|
|
|
|
|
|
|
|
Dow AgroSciences Industrial Ltda.
|
Brazil
|
|||||||||
|
|
|
|
|
|
|
Dow AgroSciences de Colombia S.A.
|
Colombia
|
||||||||||
|
|
|
|
|
|
|
Dow AgroSciences Hungary Kft.
|
Hungary
|
||||||||||
|
|
|
|
|
|
|
|
Dow AgroSciences de Colombia S.A.
|
Colombia
|
|||||||||
|
|
|
|
|
|
Dow AgroSciences Ukraine LLC
|
Ukraine
|
|||||||||||
|
|
|
|
|
Dow AgroSciences Ukraine LLC
|
Ukraine
|
||||||||||||
|
|
|
|
|
Dow AgroSciences Vertriebsgesellschaft m.b.H.
|
Austria
|
||||||||||||
|
|
|
|
|
Dow Venezuela, C.A.
|
Venezuela
|
||||||||||||
|
|
|
|
|
DP AgroSciences Finland Oy
|
Finland
|
||||||||||||
|
|
|
|
|
Fedea S.A. (1)
|
Argentina
|
||||||||||||
|
|
|
|
|
Rindes y Cultivos DAS S.A. (1)
|
Argentina
|
||||||||||||
|
|
|
|
|
SUMIDAS JV S.A. (1)
|
Argentina
|
||||||||||||
|
|
|
|
|
Terramar JV S.A. (1)
|
Argentina
|
|
|
|
|
|
Subsidiaries of The Dow Chemical Company
|
EXHIBIT 21
|
||||||||||||
|
|
|
|
|
At December 31, 2018
|
|
||||||||||||
|
Location*
|
|||||||||||||||||
This list includes companies for which the effective ownership by The Dow Chemical Company is 50 percent or more.
|
||||||||||||||||||
|
|
|
|
|
Ubajay DAS S.A. (1)
|
Argentina
|
||||||||||||
|
|
|
|
Dow AgroSciences China Ltd.
|
Delaware
|
|||||||||||||
|
|
|
|
Dow AgroSciences India Pvt. Ltd.
|
India
|
|||||||||||||
|
|
|
|
Dow AgroSciences International Ltd.
|
Delaware
|
|||||||||||||
|
|
|
|
|
Dow AgroSciences (Thailand) Limited
|
Thailand
|
||||||||||||
|
|
|
|
Dow AgroSciences Southern Africa (Proprietary) Limited
|
South Africa
|
|||||||||||||
|
|
|
|
|
Sanachem Zimbabwe (Pvt) Ltd.
|
Zimbabwe
|
||||||||||||
|
|
|
Mycogen Plant Science, Inc.
|
Delaware
|
||||||||||||||
|
|
|
|
Agrigenetics, Inc.
|
Delaware
|
|||||||||||||
|
|
|
|
|
Agrigenetics Molokai LLC
|
Hawaii
|
||||||||||||
|
|
|
|
|
Alforex Seeds LLC
|
Delaware
|
||||||||||||
|
|
|
|
|
Brodbeck Seeds LLC
|
Delaware
|
||||||||||||
|
|
|
|
|
Cal/West Seeds S.R.L.
|
Argentina
|
||||||||||||
|
|
|
|
|
Dairyland Seed Co., Inc.
|
Wisconsin
|
||||||||||||
|
|
|
|
|
Mycogen Seeds-Puerto Rico Corporation
|
Delaware
|
||||||||||||
|
|
|
|
|
Pfister Seeds LLC
|
Delaware
|
||||||||||||
|
|
|
|
|
Prairie Brand Seeds LLC
|
Delaware
|
||||||||||||
|
|
|
Phytogen Seed Company, LLC
|
Delaware
|
||||||||||||||
|
Chemars III LLC
|
Delaware
|
||||||||||||||||
|
Chemtech II L.P.
|
Delaware
|
||||||||||||||||
|
Clean Filtration Technologies LLC
|
Delaware
|
||||||||||||||||
|
DCOMCO, Inc.
|
Delaware
|
||||||||||||||||
|
DDP AgroSciences US DCOMCO, Inc.
|
Delaware
|
||||||||||||||||
|
|
Dow AgroSciences LLC
|
Delaware
|
|||||||||||||||
|
DDP AgroSciences US, Inc.
|
Delaware
|
||||||||||||||||
|
DDP Specialty Electronic Materials US 7, LLC
|
Delaware
|
||||||||||||||||
|
|
CHPM Colombia Ltda
|
Colombia
|
|||||||||||||||
|
|
CHPM S.R.L.
|
Argentina
|
|||||||||||||||
|
|
Orion Electromateriales Servicios de Mexico, S. de R.L. de C.V.
|
Mexico
|
|||||||||||||||
|
|
Orion Electromaterials, S. de R.L. de C.V.
|
Mexico
|
|||||||||||||||
|
|
Specialty Electronic Materials Comercio de Produtos Quimicos do Brasil Ltda.
|
Brazil
|
|||||||||||||||
|
|
Specialty Products Chile Comercial Limitada
|
Chile
|
|||||||||||||||
|
DDP Specialty Electronic Materials US, Inc.
|
Delaware
|
||||||||||||||||
|
|
Dow Kakoh Kabushiki Kaisha
|
Japan
|
|||||||||||||||
|
|
CHPM S.R.L.
|
Argentina
|
|||||||||||||||
|
|
Specialty Products Chile Comercial Limitada
|
Chile
|
|||||||||||||||
|
Denmerco Inc.
|
Delaware
|
||||||||||||||||
|
Dow Chemical (China) Investment Company Limited
|
China
|
||||||||||||||||
|
|
Dow Chemical (Guangzhou) Company Limited
|
China
|
|||||||||||||||
|
|
Dow Chemical (Shanghai) Company Limited
|
China
|
|||||||||||||||
|
|
Dow Chemical (Sichuan) Co., Ltd.
|
China
|
|||||||||||||||
|
|
Dow Chemical (Zhangjiagang) Company Limited
|
China
|
|||||||||||||||
|
|
Guangdong Zhongshan Amerchol Specialty Chemicals Co., Ltd.
|
China
|
|||||||||||||||
|
|
Zhejiang Pacific Chemical Corporation
|
China
|
|||||||||||||||
|
Dow Chemical (Singapore) Private Limited
|
Singapore
|
||||||||||||||||
|
|
Dow Chemical (Myanmar) Ltd.
|
Myanmar
|
|||||||||||||||
|
|
Dow Chemical Bangladesh Private Limited
|
Bangladesh
|
|||||||||||||||
|
|
PT Dow Indonesia
|
Indonesia
|
|||||||||||||||
|
Dow Chemical China Holdings Pte. Ltd.
|
Singapore
|
|
|
|
|
|
Subsidiaries of The Dow Chemical Company
|
EXHIBIT 21
|
||||||||||||
|
|
|
|
|
At December 31, 2018
|
|
||||||||||||
|
Location*
|
|||||||||||||||||
This list includes companies for which the effective ownership by The Dow Chemical Company is 50 percent or more.
|
||||||||||||||||||
|
Dow Chemical Costa Rica S.A.
|
Costa Rica
|
||||||||||||||||
|
Dow Chemical Delaware Corp.
|
Delaware
|
||||||||||||||||
|
|
Chemtech II L.P.
|
Delaware
|
|||||||||||||||
|
|
|
Chemtech Portfolio Inc.
|
Texas
|
||||||||||||||
|
|
|
Chemtech Portfolio II Inc.
|
Michigan
|
||||||||||||||
|
Dow Chemical International Ltd.
|
Delaware
|
||||||||||||||||
|
|
Dow Chemical Costa Rica S.A.
|
Costa Rica
|
|||||||||||||||
|
|
Dow Chemical Thailand Ltd.
|
Thailand
|
|||||||||||||||
|
|
Dow International Holdings Company
|
Delaware
|
|||||||||||||||
|
|
Petroquimica-Dow S.A. (Petrodow)
|
Chile
|
|||||||||||||||
|
Dow Chemical Kuwait B.V.
|
Netherlands
|
||||||||||||||||
|
Dow Chemical Singapore Holdings Pte. Ltd.
|
Singapore
|
||||||||||||||||
|
Dow Chemical Taiwan Limited
|
Taiwan
|
||||||||||||||||
|
Dow Chemical Telecommunications Corp.
|
Delaware
|
||||||||||||||||
|
Dow Chemical Tianjin Holdings Pte. Ltd.
|
Singapore
|
||||||||||||||||
|
Dow Deutschland Inc.
|
Delaware
|
||||||||||||||||
|
|
Dow Chemical Inter-American Limited
|
Delaware
|
|||||||||||||||
|
|
|
Dow Quimica de Colombia S.A.
|
Colombia
|
||||||||||||||
|
Dow Engineering Company
|
Delaware
|
||||||||||||||||
|
|
Dow Engineering, Inc.
|
Michigan
|
|||||||||||||||
|
Dow Financial Services Inc.
|
Delaware
|
||||||||||||||||
|
Dow Global Financial Management, Inc.
|
Delaware
|
||||||||||||||||
|
Dow Global Technologies LLC
|
Delaware
|
||||||||||||||||
|
|
Chemtech Portfolio Inc.
|
Texas
|
|||||||||||||||
|
|
Dow Technology Investments LLC
|
Delaware
|
|||||||||||||||
|
Dow Hydrocarbons and Resources LLC
|
Delaware
|
||||||||||||||||
|
|
Cayuse Pipeline, Inc.
|
Texas
|
|||||||||||||||
|
|
Dow Intrastate Gas Company
|
Louisiana
|
|||||||||||||||
|
|
Dow Pipeline Company
|
Texas
|
|||||||||||||||
|
|
K/D/S Promix, LLC (1)
|
Texas
|
|||||||||||||||
|
|
Midland Pipeline Corp.
|
Delaware
|
|||||||||||||||
|
|
|
Fort Saskatchewan Ethylene Storage Corporation (1)
|
Canada
|
||||||||||||||
|
|
|
|
Fort Saskatchewan Ethylene Storage Limited Partnership
|
Canada
|
|||||||||||||
|
Dow Internacional Mexicana S.A. de C.V.
|
Mexico
|
||||||||||||||||
|
Dow International Financial Services
|
Ireland
|
||||||||||||||||
|
|
Dow Capital Public Limited Company
|
Ireland
|
|||||||||||||||
|
Dow International Holdings Company
|
Delaware
|
||||||||||||||||
|
|
Dow Luxembourg Spectrum Holding S.a.r.l.
|
Luxembourg
|
|||||||||||||||
|
|
|
Dow Luxembourg Galaxy Holding S.a.r.l.
|
Luxembourg
|
||||||||||||||
|
|
|
|
Dow Switzerland Holding GmbH
|
Switzerland
|
|||||||||||||
|
|
|
|
|
Dow Corning France S.A.S.
|
France
|
||||||||||||
|
|
|
|
|
Dow Corning Silicones Malaysia SDN. BHD.
|
Malaysia
|
||||||||||||
|
|
|
|
|
Dow Corning Singapore Pte. Ltd.
|
Singapore
|
||||||||||||
|
|
|
|
|
|
Dow (Shanghai) Holding Co., Ltd.
|
China
|
|||||||||||
|
|
|
|
|
|
Dow Corning (Thailand) Limited
|
Thailand
|
|||||||||||
|
|
|
|
|
|
Dow Silicones (Shanghai) Co., Ltd.
|
China
|
|||||||||||
|
|
|
|
|
Dow International Holdings S.A.
|
Switzerland
|
||||||||||||
|
|
|
|
|
|
Dow Europe Holding B.V.
|
Netherlands
|
|||||||||||
|
|
|
|
|
|
|
BASF DOW HPPO B.V. (1)
|
Netherlands
|
|
|
|
|
|
Subsidiaries of The Dow Chemical Company
|
EXHIBIT 21
|
||||||||||||
|
|
|
|
|
At December 31, 2018
|
|
||||||||||||
|
Location*
|
|||||||||||||||||
This list includes companies for which the effective ownership by The Dow Chemical Company is 50 percent or more.
|
||||||||||||||||||
|
|
|
|
|
|
|
BASF DOW HPPO Technology B.V. (1)
|
Netherlands
|
||||||||||
|
|
|
|
|
|
|
DoNedPa B.V.
|
Netherlands
|
||||||||||
|
|
|
|
|
|
|
Dow Austria Gesellschaft m.b.H.
|
Austria
|
||||||||||
|
|
|
|
|
|
|
Dow Belgium B.V.B.A.
|
Belgium
|
||||||||||
|
|
|
|
|
|
|
Dow Benelux B.V.
|
Netherlands
|
||||||||||
|
|
|
|
|
|
|
|
Polyol Belgium B.V.B.A.
|
Belgium
|
|||||||||
|
|
|
|
|
|
|
|
Terneuzen Partnership Services B.V.
|
Netherlands
|
|||||||||
|
|
|
|
|
|
|
|
|
Valuepark Terneuzen C.V. (1)
|
Netherlands
|
||||||||
|
|
|
|
|
|
|
|
Valuepark Terneuzen Beheer B.V. (1)
|
Netherlands
|
|||||||||
|
|
|
|
|
|
|
|
|
Valuepark Terneuzen C.V. (1)
|
Netherlands
|
||||||||
|
|
|
|
|
|
|
Dow Beteiligungsgesellschaft mbH & Co. KG
|
Germany
|
||||||||||
|
|
|
|
|
|
|
|
Dow Olefinverbund GmbH
|
Germany
|
|||||||||
|
|
|
|
|
|
|
Dow Chemical Company Limited
|
United Kingdom
|
||||||||||
|
|
|
|
|
|
|
|
Dow Chemical Services UK Limited
|
United Kingdom
|
|||||||||
|
|
|
|
|
|
|
|
Dow Limited
|
United Kingdom
|
|||||||||
|
|
|
|
|
|
|
|
Dow Services Trustees UK Limited
|
United Kingdom
|
|||||||||
|
|
|
|
|
|
|
|
Dow Trent Limited
|
United Kingdom
|
|||||||||
|
|
|
|
|
|
|
|
|
Dow Thames Limited
|
United Kingdom
|
||||||||
|
|
|
|
|
|
|
|
Hyperlast Limited
|
United Kingdom
|
|||||||||
|
|
|
|
|
|
|
|
Dow UK Limited
|
United Kingdom
|
|||||||||
|
|
|
|
|
|
|
Dow Chemical East Africa Limited
|
Kenya
|
||||||||||
|
|
|
|
|
|
|
Dow Chemical Iberica S.L.
|
Spain
|
||||||||||
|
|
|
|
|
|
|
|
Terminal de Atraque de Productos Petroquimicos, A.I.E. (1)
|
Spain
|
|||||||||
|
|
|
|
|
|
|
|
Transformadora de Etileno A.I.E. (1)
|
Spain
|
|||||||||
|
|
|
|
|
|
|
Dow Chemical Korea Limited
|
Korea
|
||||||||||
|
|
|
|
|
|
|
Dow Chemical OOO
|
Russia
|
||||||||||
|
|
|
|
|
|
|
Dow Chemical Romania S.R.L.
|
Romania
|
||||||||||
|
|
|
|
|
|
|
Dow Chemical West Africa Limited
|
Ghana
|
||||||||||
|
|
|
|
|
|
|
Dow Corning Australia Pty. Ltd.
|
Australia
|
||||||||||
|
|
|
|
|
|
|
|
Dow Corning (Thailand) Limited
|
Thailand
|
|||||||||
|
|
|
|
|
|
|
Dow Corning de Argentina S.R.L.
|
Argentina
|
||||||||||
|
|
|
|
|
|
|
Dow Europe GmbH
|
Switzerland
|
||||||||||
|
|
|
|
|
|
|
|
Dow Chemical IMEA GmbH
|
Switzerland
|
|||||||||
|
|
|
|
|
|
|
|
Dow Egypt Services Limited
|
Egypt
|
|||||||||
|
|
|
|
|
|
|
|
Dow International Finance S.a.r.l.
|
Luxembourg
|
|||||||||
|
|
|
|
|
|
|
|
Dow Mideast Systems S.A.E. (JSC)
|
Egypt
|
|||||||||
|
|
|
|
|
|
|
Dow Hellas A.E.
|
Greece
|
||||||||||
|
|
|
|
|
|
|
Dow Hungary Kft.
|
Hungary
|
||||||||||
|
|
|
|
|
|
|
Dow Industrial Chemical Products Nigeria Limited
|
Nigeria
|
||||||||||
|
|
|
|
|
|
|
Dow InterBranch B.V.
|
Netherlands
|
||||||||||
|
|
|
|
|
|
|
|
Dow Benelux Integrated Center B.V.
|
Netherlands
|
|||||||||
|
|
|
|
|
|
|
|
Dow Chemical East Africa Limited
|
Kenya
|
|||||||||
|
|
|
|
|
|
|
|
Dow Danmark A/S
|
Denmark
|
|||||||||
|
|
|
|
|
|
|
|
Dow Industrial Chemical Products Nigeria Limited
|
Nigeria
|
|||||||||
|
|
|
|
|
|
|
|
Dow Material Sciences Ltd.
|
Israel
|
|||||||||
|
|
|
|
|
|
|
|
Dow Materials Science Saudi Arabia Limited
|
Saudi Arabia
|
|||||||||
|
|
|
|
|
|
|
|
Dow Mideast Systems S.A.E. (JSC)
|
Egypt
|
|||||||||
|
|
|
|
|
|
|
|
Dow Morocco SARL
|
Morocco
|
|||||||||
|
|
|
|
|
|
|
|
Dow Norge A/S
|
Norway
|
|
|
|
|
|
Subsidiaries of The Dow Chemical Company
|
EXHIBIT 21
|
||||||||||||
|
|
|
|
|
At December 31, 2018
|
|
||||||||||||
|
Location*
|
|||||||||||||||||
This list includes companies for which the effective ownership by The Dow Chemical Company is 50 percent or more.
|
||||||||||||||||||
|
|
|
|
|
|
|
|
Dow Silicones Belgium SPRL
|
Belgium
|
|||||||||
|
|
|
|
|
|
|
|
Dow Specialties Limited
|
Saudi Arabia
|
|||||||||
|
|
|
|
|
|
|
|
PT Rohm and Haas Indonesia
|
Indonesia
|
|||||||||
|
|
|
|
|
|
|
|
Rohm and Haas International SNC
|
France
|
|||||||||
|
|
|
|
|
|
|
|
Rohm and Haas Latinoamerica, S. de R.L. de C.V.
|
Mexico
|
|||||||||
|
|
|
|
|
|
|
|
Rohm and Haas Mexico, S. de R.L. de C.V.
|
Mexico
|
|||||||||
|
|
|
|
|
|
|
|
Santa Vitoria Acucar e Alcool Ltda.
|
Brazil
|
|||||||||
|
|
|
|
|
|
|
Dow Italia s.r.l.
|
Italy
|
||||||||||
|
|
|
|
|
|
|
|
Dow Italia Divisione Commerciale s.r.l.
|
Italy
|
|||||||||
|
|
|
|
|
|
|
Dow Material Sciences Ltd.
|
Israel
|
||||||||||
|
|
|
|
|
|
|
Dow Mideast Systems S.A.E. (JSC)
|
Egypt
|
||||||||||
|
|
|
|
|
|
|
|
Dow Egypt Services Limited
|
Egypt
|
|||||||||
|
|
|
|
|
|
|
Dow Morocco SARL
|
Morocco
|
||||||||||
|
|
|
|
|
|
|
Dow Olefinverbund GmbH
|
Germany
|
||||||||||
|
|
|
|
|
|
|
|
Dow Deutschland Anlagengesellschaft mbH
|
Germany
|
|||||||||
|
|
|
|
|
|
|
|
|
DDP Specialty Products Germany GmbH & Co. KG
|
Germany
|
||||||||
|
|
|
|
|
|
|
|
Dow Deutschland Verwaltungs Vertriebs GmbH
|
Germany
|
|||||||||
|
|
|
|
|
|
|
|
|
Dow Produktions und Vertriebs GmbH & Co. OHG
|
Germany
|
||||||||
|
|
|
|
|
|
|
|
|
Dow Stade Produktions GmbH & Co. OHG
|
Germany
|
||||||||
|
|
|
|
|
|
|
|
Dow MF Verwaltungs GmbH
|
Germany
|
|||||||||
|
|
|
|
|
|
|
|
|
Dow Produktions und Vertriebs GmbH & Co. OHG
|
Germany
|
||||||||
|
|
|
|
|
|
|
|
|
Dow Stade Produktions GmbH & Co. OHG
|
Germany
|
||||||||
|
|
|
|
|
|
|
|
Dow Pipeline Gesellschaft mbH & Co. KG
|
Germany
|
|||||||||
|
|
|
|
|
|
|
|
Dow Pipeline Verwaltungsgesellschaft mbH
|
Germany
|
|||||||||
|
|
|
|
|
|
|
|
Dow Silicones Deutschland GmbH
|
Germany
|
|||||||||
|
|
|
|
|
|
|
Dow Performance Materials (Australia) Pty Ltd
|
Australia
|
||||||||||
|
|
|
|
|
|
|
Dow Polska Sp.z.o.o.
|
Poland
|
||||||||||
|
|
|
|
|
|
|
Dow Portugal Produtos Quimicos, Unipessoal, Lda.
|
Portugal
|
||||||||||
|
|
|
|
|
|
|
Dow Saudi Arabia Holding B.V.
|
Netherlands
|
||||||||||
|
|
|
|
|
|
|
Dow Saudi Arabia Investment B.V.
|
Netherlands
|
||||||||||
|
|
|
|
|
|
|
|
Dow Materials Science Saudi Arabia Limited
|
Saudi Arabia
|
|||||||||
|
|
|
|
|
|
|
Dow Saudi Arabia Product Marketing B.V.
|
Netherlands
|
||||||||||
|
|
|
|
|
|
|
Dow Silicones Belgium SPRL
|
Belgium
|
||||||||||
|
|
|
|
|
|
|
Dow Silicones UK Limited
|
United Kingdom
|
||||||||||
|
|
|
|
|
|
|
Dow Southern Africa (Pty) Ltd
|
South Africa
|
||||||||||
|
|
|
|
|
|
|
|
Rohm and Haas South Africa (PTY) Limited
|
South Africa
|
|||||||||
|
|
|
|
|
|
|
Dow Specialties Limited
|
Saudi Arabia
|
||||||||||
|
|
|
|
|
|
|
Dow Suomi OY
|
Finland
|
||||||||||
|
|
|
|
|
|
|
Dow Sverige AB
|
Sweden
|
||||||||||
|
|
|
|
|
|
|
Dow Turkiye Kimya Sanayi ve Ticaret Limited Sirketi
|
Turkey
|
||||||||||
|
|
|
|
|
|
|
|
Rohm and Haas Kimya Sanayi Limited Sirketi
|
Turkey
|
|||||||||
|
|
|
|
|
|
|
DowAksa Advanced Composites Holdings B.V. (1)
|
Netherlands
|
||||||||||
|
|
|
|
|
|
|
EQUATE Marketing Company E.C. (1)
|
Bahrain
|
||||||||||
|
|
|
|
|
|
|
Finndisp Ltd.
|
Russia
|
||||||||||
|
|
|
|
|
|
|
HPPO Holding & Finance C.V. (1)
|
Netherlands
|
||||||||||
|
|
|
|
|
|
|
MTP HPJV C.V.
|
Netherlands
|
||||||||||
|
|
|
|
|
|
|
MTP HPJV Management B.V.
|
Netherlands
|
||||||||||
|
|
|
|
|
|
|
Palmyra do Brasil Indústria e Comércio de Silício Metálico e Recursos Naturais Ltda.
|
Brazil
|
|
|
|
|
|
Subsidiaries of The Dow Chemical Company
|
EXHIBIT 21
|
||||||||||||
|
|
|
|
|
At December 31, 2018
|
|
||||||||||||
|
Location*
|
|||||||||||||||||
This list includes companies for which the effective ownership by The Dow Chemical Company is 50 percent or more.
|
||||||||||||||||||
|
|
|
|
|
|
|
Polyol Belgium B.V.B.A.
|
Belgium
|
||||||||||
|
|
|
|
|
|
|
Rohm and Haas (UK) Limited
|
United Kingdom
|
||||||||||
|
|
|
|
|
|
|
Rohm and Haas Denmark Bermuda GP ApS
|
Denmark
|
||||||||||
|
|
|
|
|
|
|
|
Rohm and Haas Denmark Holding Company ApS
|
Denmark
|
|||||||||
|
|
|
|
|
|
|
|
|
Rohm and Haas Espana Production Holding, S.L.
|
Spain
|
||||||||
|
|
|
|
|
|
|
|
|
|
Rohm and Haas Espana, S.L.
|
Spain
|
|||||||
|
|
|
|
|
|
|
|
|
Rohm and Haas Europe Services ApS
|
Denmark
|
||||||||
|
|
|
|
|
|
|
|
|
Rohm and Haas Europe Trading ApS
|
Denmark
|
||||||||
|
|
|
|
|
|
|
|
|
Rohm and Haas Italia S.r.l.
|
Italy
|
||||||||
|
|
|
|
|
|
|
|
|
Rohm and Haas Kimyasal Urunler Uretim Dagitim ve Ticaret A.S.
|
Turkey
|
||||||||
|
|
|
|
|
|
|
Rohm and Haas Electronic Materials Europe Ltd.
|
United Kingdom
|
||||||||||
|
|
|
|
|
|
|
Rohm and Haas International SNC
|
France
|
||||||||||
|
|
|
|
|
|
|
|
Dow France S.A.S.
|
France
|
|||||||||
|
|
|
|
|
|
|
Rohm and Haas Nederland B.V.
|
Netherlands
|
||||||||||
|
|
|
|
|
|
|
RUS Polyurethanes Holding B.V.
|
Netherlands
|
||||||||||
|
|
|
|
|
|
|
|
Dow Izolan OOO
|
Russia
|
|||||||||
|
|
|
|
|
|
|
|
Dow Izolan Ukraine LLC
|
Ukraine
|
|||||||||
|
|
|
|
|
|
Specialty Electronic Materials Netherlands B.V.
|
Netherlands
|
|||||||||||
|
|
|
|
|
|
|
DDP Specialty Products Hungary Kft
|
Hungary
|
||||||||||
|
|
|
|
|
|
|
DDP Specialty Products Poland Sp. z o.o.
|
Poland
|
||||||||||
|
|
|
|
|
|
|
DDP Specialty Products Portugal, Lda
|
Portugal
|
||||||||||
|
|
|
|
|
|
|
DDP Specialty Products South Africa Proprietary Limited
|
South Africa
|
||||||||||
|
|
|
|
|
|
|
DDP Specialty Products Sweden AB
|
Sweden
|
||||||||||
|
|
|
|
|
|
|
DDP Specialty Products Turkey Kimya Uretim Ticart Limited Sirketi
|
Turkey
|
||||||||||
|
|
|
|
|
|
|
DSP Germany GmbH
|
Germany
|
||||||||||
|
|
|
|
|
|
|
DSP S.A.S.
|
Netherlands
|
||||||||||
|
|
|
|
|
|
|
DWDP Products Nigeria Limited
|
Nigeria
|
||||||||||
|
|
|
|
|
|
|
Specialty Products RUS OOO
|
Russia
|
||||||||||
|
|
|
|
|
|
|
Peak Spain, S.L. Sociedad Unipersonal
|
Spain
|
||||||||||
|
|
|
|
|
|
|
Specialty Electronic Materials Belgium, BVBA
|
Belgium
|
||||||||||
|
|
|
|
|
|
|
Specialty Electronic Materials Ireland Limited
|
Ireland
|
||||||||||
|
|
|
|
|
|
|
Specialty Electronic Materials Italy srl
|
Italy
|
||||||||||
|
|
|
|
|
|
|
Specialty Electronic Materials Switzerland GmbH
|
Switzerland
|
||||||||||
|
|
|
|
|
|
|
|
DDP Specialty Products Poland Sp. z o.o.
|
Poland
|
|||||||||
|
|
|
|
|
|
|
|
DDP Specialty Products Portugal, Lda
|
Portugal
|
|||||||||
|
|
|
|
|
|
|
|
DWDP Products Nigeria Limited
|
Nigeria
|
|||||||||
|
|
|
|
|
|
|
Specialty Electronic Materials UK Limited
|
United Kingdom
|
||||||||||
|
|
|
|
|
|
|
Specialty Products Finland Oy
|
Finland
|
||||||||||
|
|
|
|
|
|
|
Specialty Products FZE
|
United Arab Emirates
|
||||||||||
|
|
|
|
|
Dow Silicones Holding Japan G.K.
|
Japan
|
||||||||||||
|
|
|
|
|
Dow Silicones Netherlands Holding B.V.
|
Netherlands
|
||||||||||||
|
|
|
|
|
|
Dow Chemical Silicones Korea, Ltd.
|
Korea
|
|||||||||||
|
|
|
|
|
|
Specialty Products Netherlands Holding 1 B.V.
|
Netherlands
|
|||||||||||
|
|
|
|
|
Dow Siloxane (Zhangjiagang) Holding Co. Private Ltd.
|
Singapore
|
||||||||||||
|
|
|
|
|
|
Dow Siloxanes (Zhangjiagang) Co., Ltd.
|
China
|
|||||||||||
|
|
|
|
|
Specialty Products Japan G.K.
|
Japan
|
||||||||||||
|
|
|
|
|
|
Dow Corning Toray Company, Ltd.
|
Japan
|
|||||||||||
|
|
|
|
|
|
|
Site Services Japan, Co., Ltd.
|
Japan
|
||||||||||
|
|
|
|
|
|
Dow Toray Co., Ltd.
|
Japan
|
|
|
|
|
|
Subsidiaries of The Dow Chemical Company
|
EXHIBIT 21
|
||||||||||||
|
|
|
|
|
At December 31, 2018
|
|
||||||||||||
|
Location*
|
|||||||||||||||||
This list includes companies for which the effective ownership by The Dow Chemical Company is 50 percent or more.
|
||||||||||||||||||
|
|
|
|
|
DuPont Services Company B.V.
|
Netherlands
|
||||||||||||
|
|
|
|
|
|
Multibase S.A.
|
France
|
|||||||||||
|
|
|
|
|
|
|
Multibase India Limited
|
India
|
||||||||||
|
|
|
|
|
|
|
Multibase, Inc.
|
Delaware
|
||||||||||
|
|
DowBrands Inc.
|
Delaware
|
|||||||||||||||
|
|
Rohm and Haas Company
|
Delaware
|
|||||||||||||||
|
|
|
Charles Lennig & Company LLC
|
Delaware
|
||||||||||||||
|
|
|
|
Rohm and Haas Chile Limitada
|
Chile
|
|||||||||||||
|
|
|
|
Rohm and Haas Colombia Ltda
|
Colombia
|
|||||||||||||
|
|
|
DDP Specialty Electronic Materials US 8, LLC
|
Delaware
|
||||||||||||||
|
|
|
Dow Japan Holdings K.K.
|
Japan
|
||||||||||||||
|
|
|
ROH Holdings 1, LLC
|
Delaware
|
||||||||||||||
|
|
|
|
Rohm and Haas Equity Corporation
|
Delaware
|
|||||||||||||
|
|
|
|
|
DDP Specialty Electronic Materials US 4, LLC
|
Delaware
|
||||||||||||
|
|
|
|
|
|
Specialty Electronic Materials (Thailand) Company Limited
|
Thailand
|
|||||||||||
|
|
|
|
|
Dow Luxembourg Spectrum Holding S.a.r.l.
|
Luxembourg
|
||||||||||||
|
|
|
|
|
Dow Netherlands Nordic Holding B.V.
|
Netherlands
|
||||||||||||
|
|
|
|
|
ROH Holdings 2, LLC
|
Delaware
|
||||||||||||
|
|
|
|
|
|
Rohm and Haas Chemicals LLC
|
Delaware
|
|||||||||||
|
|
|
|
|
|
|
CVD Incorporated
|
Delaware
|
||||||||||
|
|
|
|
|
|
|
DDP Specialty Electronic Materials US 5, LLC
|
Delaware
|
||||||||||
|
|
|
|
|
|
|
|
Morton Intermediate Company
|
Delaware
|
|||||||||
|
|
|
|
|
|
|
|
|
Rohm and Haas Electronic Materials Taiwan Ltd.
|
Taiwan
|
||||||||
|
|
|
|
|
|
|
|
Rohm and Haas Wood Treatment LLC
|
Delaware
|
|||||||||
|
|
|
|
|
|
|
|
Specialty Electronic Materials (Thailand) Company Limited
|
Thailand
|
|||||||||
|
|
|
|
|
|
|
Morton International Co., Ltd.
|
Japan
|
||||||||||
|
|
|
|
|
|
|
Morton International, LLC
|
Indiana
|
||||||||||
|
|
|
|
|
|
|
Morton International Productos Quimicos Ltda.
|
Brazil
|
||||||||||
|
|
|
|
|
|
|
Rohm and Haas Capital Corporation
|
Delaware
|
||||||||||
|
|
|
|
|
ROH Venture GmbH
|
Germany
|
||||||||||||
|
|
|
|
|
|
ROH Delaware, LLC
|
Delaware
|
|||||||||||
|
|
|
|
|
|
|
ROH Delaware, LP
|
Delaware
|
||||||||||
|
|
|
|
|
|
ROH Delaware, LP
|
Delaware
|
|||||||||||
|
|
|
|
|
Rohm and Haas (Far East) Limited
|
Hong Kong
|
||||||||||||
|
|
|
|
|
Rohm and Haas Chemical (Thailand) Limited
|
Thailand
|
||||||||||||
|
|
|
|
|
Rohm and Haas China, Inc.
|
Delaware
|
||||||||||||
|
|
|
|
|
|
Beijing Eastern Rohm and Haas Company Limited
|
China
|
|||||||||||
|
|
|
|
|
|
Rohm and Haas International Trading (Shanghai) Co. Ltd.
|
China
|
|||||||||||
|
|
|
|
|
|
Shanghai Eastern Rohm and Haas Co., Ltd.
|
China
|
|||||||||||
|
|
|
|
|
Rohm and Haas Denmark Finance A/S
|
Denmark
|
||||||||||||
|
|
|
|
|
|
Dow Chemical International Private Limited
|
India
|
|||||||||||
|
|
|
|
|
|
PT Rohm and Haas Indonesia
|
Indonesia
|
|||||||||||
|
|
|
|
|
|
RH DK Mexico Holding ApS
|
Denmark
|
|||||||||||
|
|
|
|
|
|
|
Rohm and Haas Mexico, S. de R.L. de C.V.
|
Mexico
|
||||||||||
|
|
|
|
|
|
RH DK Vietnam Holdings ApS
|
Denmark
|
|||||||||||
|
|
|
|
|
|
|
Rohm and Haas Vietnam Co., Ltd.
|
Vietnam
|
||||||||||
|
|
|
|
|
|
Rohm and Haas (China) Holding Co., Ltd.
|
China
|
|||||||||||
|
|
|
|
|
|
Rohm and Haas (Foshan) Specialty Materials Co., Ltd.
|
China
|
|||||||||||
|
|
|
|
|
|
Rohm and Haas Argentina S.R.L.
|
Argentina
|
|
|
|
|
|
Subsidiaries of The Dow Chemical Company
|
EXHIBIT 21
|
||||||||||||
|
|
|
|
|
At December 31, 2018
|
|
||||||||||||
|
Location*
|
|||||||||||||||||
This list includes companies for which the effective ownership by The Dow Chemical Company is 50 percent or more.
|
||||||||||||||||||
|
|
|
|
|
|
Rohm and Haas Chemicals Singapore Pte. Ltd.
|
Singapore
|
|||||||||||
|
|
|
|
|
|
Rohm and Haas Denmark China Investment ApS
|
Denmark
|
|||||||||||
|
|
|
|
|
|
Rohm and Haas Latinoamerica, S. de R.L. de C.V.
|
Mexico
|
|||||||||||
|
|
|
|
|
|
Rohm and Haas Singapore (Pte.) Ltd.
|
Singapore
|
|||||||||||
|
|
|
|
|
|
Specialty Electronic Materials Netherlands Holding 5 B.V.
|
Netherlands
|
|||||||||||
|
|
|
|
|
|
|
RH DK Korea OLED Holdings ApS
|
Denmark
|
||||||||||
|
|
|
|
|
|
|
|
Dow Chemical OLED Ltd.
|
Korea
|
|||||||||
|
|
|
|
|
|
|
|
Rohm and Haas Electronic Materials Korea Ltd.
|
Korea
|
|||||||||
|
|
|
|
|
|
|
Rohm and Haas Denmark Bermuda Holding Company ApS
|
Denmark
|
||||||||||
|
|
|
|
|
|
|
|
Rohm and Haas Electronic Materials Asia Limited
|
Hong Kong
|
|||||||||
|
|
|
|
|
|
|
|
|
RH Denmark Dongguan Holding Company ApS
|
Denmark
|
||||||||
|
|
|
|
|
|
|
|
|
|
DSP Singapore Holdings Pte. Ltd.
|
Singapore
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
CHPM NZ Limited
|
New Zealand
|
||||||
|
|
|
|
|
|
|
|
|
|
|
CUPOSIT Electronic Materials Zhangjiagang Co., Ltd.
|
China
|
||||||
|
|
|
|
|
|
|
|
|
|
|
DDP Speciality Products India Private Limited
|
India
|
||||||
|
|
|
|
|
|
|
|
|
|
|
PT Blue Cube Indonesia
|
Indonesia
|
||||||
|
|
|
|
|
|
|
|
|
|
|
TULP Operations Australia Pty Ltd
|
Australia
|
||||||
|
|
|
|
|
|
|
|
|
Rohm and Haas Electronic Materials (Shanghai) Co., Ltd.
|
China
|
||||||||
|
|
|
|
|
|
|
|
|
Rohm and Haas Electronic Materials Singapore Pte. Ltd.
|
Singapore
|
||||||||
|
|
|
|
|
|
|
|
Rohm and Haas Electronic Materials Singapore Pte. Ltd.
|
Singapore
|
|||||||||
|
|
|
|
|
|
|
|
|
Performance Electronics Materials Malaysia Sdn. Bhd.
|
Malaysia
|
||||||||
|
|
|
|
|
|
|
|
|
PT Blue Cube Indonesia
|
Indonesia
|
||||||||
|
|
|
|
|
|
|
|
Rohm and Haas Shanghai Chemical Industry Co., Ltd.
|
China
|
|||||||||
|
|
|
|
|
|
|
Rohm and Haas HK Dongguan Holding Limited
|
Hong Kong
|
||||||||||
|
|
|
|
|
|
|
|
Rohm and Haas Electronic Materials (Dongguan) Co., Ltd.
|
China
|
|||||||||
|
|
|
|
|
|
|
Specialty Electronic Materials Vietnam Co., Ltd
|
Vietnam
|
||||||||||
|
|
|
|
|
Rohm and Haas Korea Co., Ltd.
|
Korea
|
||||||||||||
|
|
|
|
|
Rohm and Haas Malaysia Sdn Bhd
|
Malaysia
|
||||||||||||
|
|
|
|
|
Rohm and Haas Texas Incorporated
|
Texas
|
||||||||||||
|
|
|
|
|
|
Battleground Water Company
|
Texas
|
|||||||||||
|
|
|
|
|
|
ROH Monomer Holding Company
|
Delaware
|
|||||||||||
|
|
|
|
|
|
Rohm and Haas Investment Holdings Inc.
|
Delaware
|
|||||||||||
|
|
|
Rohm and Haas Argentina S.R.L.
|
Argentina
|
||||||||||||||
|
|
|
Rohm and Haas Chile Limitada
|
Chile
|
||||||||||||||
|
|
|
Rohm and Haas Colombia Ltda
|
Colombia
|
||||||||||||||
|
|
|
Rohm and Haas Electronic Materials K.K.
|
Japan
|
||||||||||||||
|
|
|
|
CHPM Japan K.K.
|
Japan
|
|||||||||||||
|
|
|
|
Dow Chemical Japan Limited
|
Japan
|
|||||||||||||
|
|
|
|
|
Japan Acrylic Chemical Co., Ltd.
|
Japan
|
||||||||||||
|
|
|
Rohm and Haas Equity Corporation
|
Delaware
|
||||||||||||||
|
|
|
Rohm and Haas Electronic Materials LLC
|
Delaware
|
||||||||||||||
|
|
|
|
Orion Electromateriales Servicios de Mexico, S. de R.L. de C.V.
|
Mexico
|
|||||||||||||
|
|
|
|
Orion Electromaterials, S. de R.L. de C.V.
|
Mexico
|
|||||||||||||
|
|
|
|
Specialty Electronic Materials Comercio de Produtos Quimicos do Brasil Ltda.
|
Brazil
|
|||||||||||||
|
|
|
|
Rohm and Haas Equity Corporation
|
Delaware
|
|||||||||||||
|
|
|
Rohm and Haas Investment Holdings Inc.
|
Delaware
|
||||||||||||||
|
|
|
Rohm and Haas New Zealand Limited
|
New Zealand
|
||||||||||||||
|
|
|
Dow Chemical Philippines, Inc.
|
Philippines
|
||||||||||||||
|
|
|
Rohm and Haas Quimica Ltda.
|
Brazil
|
|
|
|
|
|
Subsidiaries of The Dow Chemical Company
|
EXHIBIT 21
|
||||||||||||
|
|
|
|
|
At December 31, 2018
|
|
||||||||||||
|
Location*
|
|||||||||||||||||
This list includes companies for which the effective ownership by The Dow Chemical Company is 50 percent or more.
|
||||||||||||||||||
|
|
Specialty Products US 4, LLC
|
Delaware
|
|||||||||||||||
|
Dow International Technology Corporation
|
Delaware
|
||||||||||||||||
|
Dow Olefinverbund GmbH
|
Germany
|
||||||||||||||||
|
Dow Peru S.A.
|
Peru
|
||||||||||||||||
|
Dow Quimica Chilena S.A.
|
Chile
|
||||||||||||||||
|
Dow Quimica de Colombia S.A.
|
Colombia
|
||||||||||||||||
|
Dow Quimica Mexicana S.A. de C.V.
|
Mexico
|
||||||||||||||||
|
Dow Roofing Systems LLC
|
Delaware
|
||||||||||||||||
|
Dow Silicones Corporation
|
Michigan
|
||||||||||||||||
|
|
DC Alabama, Inc.
|
Delaware
|
|||||||||||||||
|
|
DCC Litigation Facility, Inc.
|
Delaware
|
|||||||||||||||
|
|
DDP Specialty Electronic Materials US 9, LLC
|
Delaware
|
|||||||||||||||
|
|
|
DC HSC Holdings LLC (1)
|
Delaware
|
||||||||||||||
|
|
|
Hemlock Semiconductor, L.L.C. (1)
|
Delaware
|
||||||||||||||
|
|
|
Multibase, Inc.
|
Delaware
|
||||||||||||||
|
|
|
Specialty Products Netherlands Holding 5 B.V.
|
Netherlands
|
||||||||||||||
|
|
Devonshire Underwriters Ltd.
|
District of Columbia
|
|||||||||||||||
|
|
Dow (Shanghai) Management Co., Ltd.
|
China
|
|||||||||||||||
|
|
Dow (Zhangjiagang) Holding Co., Ltd.
|
China
|
|||||||||||||||
|
|
Dow Chemical International Private Limited
|
India
|
|||||||||||||||
|
|
Dow Corning (Thailand) Limited
|
Thailand
|
|||||||||||||||
|
|
Dow Corning China Limited
|
Hong Kong
|
|||||||||||||||
|
|
Dow Luxembourg Spectrum Holding S.a.r.l.
|
Luxembourg
|
|||||||||||||||
|
|
Dow Netherlands Tulip Holding B.V.
|
Netherlands
|
|||||||||||||||
|
|
Dow Silicones (Zhangjiagang) Co., Ltd.
|
China
|
|||||||||||||||
|
|
Dow Silicones Deutschland GmbH
|
Germany
|
|||||||||||||||
|
|
Valley Asset Leasing, LLC
|
Delaware
|
|||||||||||||||
|
Dow South Africa Holdings (Pty) Ltd.
|
South Africa
|
||||||||||||||||
|
|
Sentrachem Limited
|
South Africa
|
|||||||||||||||
|
|
|
Cisvaal (Proprietary) Limited
|
South Africa
|
||||||||||||||
|
Dow Verwaltungsgesellschaft mbH
|
Germany
|
||||||||||||||||
|
DowBrands Inc.
|
Delaware
|
||||||||||||||||
|
Essex Chemical Corporation
|
New Jersey
|
||||||||||||||||
|
Essex Specialty Products LLC
|
New Jersey
|
||||||||||||||||
|
|
Dow Chemical (Wuhan) Company Limited
|
China
|
|||||||||||||||
|
FilmTec Corporation
|
Delaware
|
||||||||||||||||
|
|
OMEX Overseas Holdings Inc.
|
Virgin Islands
|
|||||||||||||||
|
|
|
Zhejiang OMEX Environmental Engineering Co., Ltd.
|
China
|
||||||||||||||
|
Flexible Products Company
|
Georgia
|
||||||||||||||||
|
Forbanco Inc.
|
Delaware
|
||||||||||||||||
|
General Latex and Chemical Corporation
|
Massachusetts
|
||||||||||||||||
|
GNS Enterprises, LLC
|
Georgia
|
||||||||||||||||
|
GNS Technologies, LLC
|
Georgia
|
||||||||||||||||
|
Great Western Pipeline Company, Inc.
|
California
|
||||||||||||||||
|
GWN Holding, LLC
|
Delaware
|
||||||||||||||||
|
|
Dow Netherlands Pacific Holding B.V.
|
Netherlands
|
|||||||||||||||
|
|
|
Dow Netherlands Orange Holding B.V.
|
Netherlands
|
||||||||||||||
|
|
|
|
Dow Netherlands Tulip Holding B.V.
|
Netherlands
|
|||||||||||||
|
|
|
Dow Netherlands Tulip Holding B.V.
|
Netherlands
|
|
|
|
|
|
Subsidiaries of The Dow Chemical Company
|
EXHIBIT 21
|
||||||||||||
|
|
|
|
|
At December 31, 2018
|
|
||||||||||||
|
Location*
|
|||||||||||||||||
This list includes companies for which the effective ownership by The Dow Chemical Company is 50 percent or more.
|
||||||||||||||||||
|
|
|
|
Dow Chemical Pacific (Singapore) Private Limited
|
Singapore
|
|||||||||||||
|
|
|
|
|
Dow Chemical (Malaysia) Sdn. Bhd.
|
Malaysia
|
||||||||||||
|
|
|
|
|
Dow Chemical (Myanmar) Ltd.
|
Myanmar
|
||||||||||||
|
|
|
|
|
Dow Chemical Bangladesh Private Limited
|
Bangladesh
|
||||||||||||
|
|
|
|
|
Dow Chemical International Private Limited
|
India
|
||||||||||||
|
|
|
|
|
Dow Chemical Pacific Limited
|
Hong Kong
|
||||||||||||
|
|
|
|
|
Dow Chemical Vietnam Limited Liability Company
|
Vietnam
|
||||||||||||
|
|
|
|
|
PT Dow Indonesia
|
Indonesia
|
||||||||||||
|
|
|
|
|
Voltas Water Solutions Private Limited (1)
|
India
|
||||||||||||
|
|
|
|
Rohm and Haas Canada Investments Limited
|
Canada
|
|||||||||||||
|
|
|
|
|
3229809 Nova Scotia Company
|
Canada
|
||||||||||||
|
|
|
|
|
|
Dow Investment Argentina S.R.L.
|
Argentina
|
|||||||||||
|
|
|
|
|
|
|
Dow Quimica Argentina S.R.L.
|
Argentina
|
||||||||||
|
|
|
|
|
|
|
PBBPolisur S.R.L.
|
Argentina
|
||||||||||
|
|
|
|
|
|
|
|
Dow Quimica Argentina S.R.L.
|
Argentina
|
|||||||||
|
|
|
|
|
|
PBBPolisur S.R.L.
|
Argentina
|
|||||||||||
|
|
|
|
|
|
Rohm and Haas Canada LP
|
Canada
|
|||||||||||
|
|
|
|
|
3308597 Nova Scotia Company
|
Canada
|
||||||||||||
|
|
|
|
|
Dow Investment Argentina S.R.L.
|
Argentina
|
||||||||||||
|
|
|
|
|
Rohm and Haas Canada LP
|
Canada
|
||||||||||||
|
|
|
|
|
|
Dow Chemical Canada ULC
|
Canada
|
|||||||||||
|
|
|
|
|
|
|
3308597 Nova Scotia Company
|
Canada
|
||||||||||
|
|
|
|
|
|
|
|
3294027 Nova Scotia Company
|
Canada
|
|||||||||
|
|
|
|
|
|
|
|
Dow Netherlands Holding 1 B.V.
|
Netherlands
|
|||||||||
|
|
|
|
|
|
|
|
|
Dow Brasil Industria e Comercio de Produtos Quimicos Ltda.
|
Brazil
|
||||||||
|
|
|
|
|
|
|
|
|
|
Dow Brasil Sudeste Industrial Ltda.
|
Brazil
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
Dow Especialidades Quimicas Ltda.
|
Brazil
|
||||||
|
|
|
|
|
|
|
|
|
|
Dow Especialidades Quimicas Ltda.
|
Brazil
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
Dow Brasil Sudeste Industrial Ltda.
|
Brazil
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
Rohm and Haas Quimica Ltda.
|
Brazil
|
|||||
|
|
|
|
|
|
|
Dow Corning de Argentina S.R.L.
|
Argentina
|
||||||||||
|
|
|
|
|
|
|
Fort Saskatchewan Ethylene Storage Limited Partnership
|
Canada
|
||||||||||
|
|
|
|
|
|
|
Palmyra do Brasil Indústria e Comércio de Silício Metálico e Recursos Naturais Ltda.
|
Brazil
|
||||||||||
|
|
|
|
|
|
|
Pétromont and Company, Limited Partnership (1)
|
Canada
|
||||||||||
|
|
|
|
|
|
|
Pétromont Inc. (1)
|
Canada
|
||||||||||
|
|
|
|
|
SD Group Service Company Limited (1)
|
Thailand
|
||||||||||||
|
|
|
|
|
|
Siam Polyethylene Company Limited (1)
|
Thailand
|
|||||||||||
|
|
|
|
|
Siam Polyethylene Company Limited (1)
|
Thailand
|
||||||||||||
|
|
|
|
Sentrachem Limited
|
South Africa
|
|||||||||||||
|
Ifco Inc.
|
Delaware
|
||||||||||||||||
|
|
Chemtech II L.P.
|
Delaware
|
|||||||||||||||
|
Liana Limited
|
Delaware
|
||||||||||||||||
|
|
Dorinco Reinsurance Company
|
Michigan
|
|||||||||||||||
|
|
Dorintal Reinsurance Limited
|
Vermont
|
|||||||||||||||
|
NuvoSun, Inc.
|
California
|
||||||||||||||||
|
|
NuvoSun (Shanghai) Co. Ltd.
|
China
|
|||||||||||||||
|
Photon Systems LLC
|
Delaware
|
||||||||||||||||
|
Rofan Services LLC
|
Delaware
|
|
|
|
|
|
Subsidiaries of The Dow Chemical Company
|
EXHIBIT 21
|
||||||||||||
|
|
|
|
|
At December 31, 2018
|
|
||||||||||||
|
Location*
|
|||||||||||||||||
This list includes companies for which the effective ownership by The Dow Chemical Company is 50 percent or more.
|
||||||||||||||||||
|
|
H Hotel Holding LLC
|
Delaware
|
|||||||||||||||
|
|
|
MVCC Limited Partnership
|
Delaware
|
||||||||||||||
|
|
MVCC Limited Partnership
|
Delaware
|
|||||||||||||||
|
Rohm and Haas Electronic Materials CMP Inc.
|
Delaware
|
||||||||||||||||
|
|
DDP Specialty Electronic Materials US DCOMCO, Inc.
|
Delaware
|
|||||||||||||||
|
|
Rohm and Haas Electronic Materials CMP Asia Inc.
|
Delaware
|
|||||||||||||||
|
|
|
Nitta Haas Trading Company
|
Japan
|
||||||||||||||
|
|
|
Rohm and Haas Electronic Materials CMP Korea Ltd.
|
Korea
|
||||||||||||||
|
|
|
Rohm and Haas Electronic Materials CMP Sdn. Bhd.
|
Malaysia
|
||||||||||||||
|
|
Rohm and Haas Electronic Materials CMP Holdings, Inc.
|
Delaware
|
|||||||||||||||
|
|
Rohm and Haas International Holdings Inc.
|
Delaware
|
|||||||||||||||
|
|
|
DDP Specialty Electronic Materials US 1, LLC
|
Delaware
|
||||||||||||||
|
|
|
Dow Chemical Singapore Holdings Pte. Ltd.
|
Singapore
|
||||||||||||||
|
|
|
|
Dow Chemical (Australia) Pty Ltd
|
Australia
|
|||||||||||||
|
|
|
|
Dow Chemical (NZ) Limited
|
New Zealand
|
|||||||||||||
|
|
|
|
Dow Chemical International Private Limited
|
India
|
|||||||||||||
|
|
|
|
Dow Chemical Korea Limited
|
Korea
|
|||||||||||||
|
|
|
|
Rohm and Haas Asia Holdings B.V.
|
Netherlands
|
|||||||||||||
|
|
|
|
|
DDP Specialty Products Taiwan Co., Ltd.
|
Taiwan
|
||||||||||||
|
|
|
|
|
Dow Chemical OLED Ltd.
|
Korea
|
||||||||||||
|
|
|
|
|
Rohm and Haas Electronic Materials Asia-Pacific Co., Ltd.
|
Taiwan
|
||||||||||||
|
|
|
|
|
Rohm and Haas Electronic Materials Korea Ltd.
|
Korea
|
||||||||||||
|
|
|
|
|
Rohm and Haas Japan Holdings YK
|
Japan
|
||||||||||||
|
|
|
|
|
|
|
Nitta Haas Incorporated
|
Japan
|
||||||||||
|
|
|
|
|
|
|
|
Rodel Particles, Inc.
|
Japan
|
|||||||||
|
|
|
|
|
Rohm and Haas Taiwan, Inc.
|
Taiwan
|
||||||||||||
|
|
|
|
|
Terneuzen Investments Holding B.V.
|
Netherlands
|
||||||||||||
|
|
|
|
Specialty Products Netherlands Holding 4 B.V.
|
Netherlands
|
|||||||||||||
|
|
Specialty Electronic Materials (Thailand) Company Limited
|
Thailand
|
|||||||||||||||
|
|
Specialty Products Netherlands Holding 5 B.V.
|
Netherlands
|
|||||||||||||||
|
|
|
3315639 Nova Scotia Company
|
Canada
|
||||||||||||||
|
|
|
|
3313045 Nova Scotia Company
|
Canada
|
|||||||||||||
|
|
Specialty Products US 2, LLC
|
Delaware
|
|||||||||||||||
|
|
Specialty Products US 5, LLC
|
Delaware
|
|||||||||||||||
|
Santa Vitoria Acucar e Alcool Ltda.
|
Brazil
|
||||||||||||||||
|
Sentrachem US, Inc.
|
Delaware
|
||||||||||||||||
|
|
Hampshire Holdings, Inc.
|
Delaware
|
|||||||||||||||
|
|
|
Hampshire Chemical Corp.
|
Delaware
|
||||||||||||||
|
Siam Polystyrene Company Limited (1)
|
Thailand
|
||||||||||||||||
|
Siam Styrene Monomer Company Limited (1)
|
Thailand
|
||||||||||||||||
|
Siam Synthetic Latex Company Limited (1)
|
Thailand
|
||||||||||||||||
|
TDCC Subsidiary C, Inc.
|
Delaware
|
||||||||||||||||
|
|
Univation Technologies, LLC
|
Delaware
|
|||||||||||||||
|
|
|
Univation Technologies (Hong Kong) Limited
|
Hong Kong
|
||||||||||||||
|
|
|
|
Univation (Zhangjiagang) Chemical Company Limited
|
China
|
|||||||||||||
|
|
|
Univation Technologies International, LLC
|
Delaware
|
||||||||||||||
|
Tianjin Panda Terminal Holdings Pte. Ltd.
|
Singapore
|
||||||||||||||||
|
|
Tianjin Panda Terminal (Hong Kong) Limited
|
Hong Kong
|
|||||||||||||||
|
POLY-CARB, Inc.
|
Ohio
|
|
|
|
|
|
Subsidiaries of The Dow Chemical Company
|
EXHIBIT 21
|
||||||||||||
|
|
|
|
|
At December 31, 2018
|
|
||||||||||||
|
Location*
|
|||||||||||||||||
This list includes companies for which the effective ownership by The Dow Chemical Company is 50 percent or more.
|
||||||||||||||||||
|
Union Carbide Corporation
|
New York
|
||||||||||||||||
|
|
Amerchol Corporation
|
Delaware
|
|||||||||||||||
|
|
Calidria Corporation
|
Delaware
|
|||||||||||||||
|
|
Carbide Chemical (Thailand) Limited
|
Thailand
|
|||||||||||||||
|
|
Dow International Holdings Company
|
Delaware
|
|||||||||||||||
|
|
Dow Quimica Mexicana S.A. de C.V.
|
Mexico
|
|||||||||||||||
|
|
Global Industrial Corporation
|
New York
|
|||||||||||||||
|
|
Peñuelas Technology Park LLC
|
Delaware
|
|||||||||||||||
|
|
Seadrift Pipeline Corporation
|
Delaware
|
|||||||||||||||
|
|
South Charleston Sewage Treatment Company
|
West Virginia
|
|||||||||||||||
|
|
Specialty Products US, LLC
|
Delaware
|
|||||||||||||||
|
|
UCAR Louisiana Pipeline Company
|
Delaware
|
|||||||||||||||
|
|
UCAR Pipeline Incorporated
|
Delaware
|
|||||||||||||||
|
|
|
Dow Quimica Chilena S.A.
|
Chile
|
||||||||||||||
|
|
|
Dow Peru S.A.
|
Peru
|
||||||||||||||
|
|
|
UCAR Emulsion Systems FZE
|
Dubai
|
||||||||||||||
|
|
Umetco Minerals Corporation
|
Delaware
|
|||||||||||||||
|
|
|
Blue Creek Coal Company, Inc.
|
Delaware
|
||||||||||||||
|
|
|
Predate Properties (Pty) Ltd.
|
South Africa
|
||||||||||||||
|
|
Union Carbide Asia Limited
|
Hong Kong
|
|||||||||||||||
|
|
Union Carbide Asia Pacific, Inc.
|
Delaware
|
|||||||||||||||
|
|
Union Carbide Chemicals & Plastics Technology LLC
|
Delaware
|
|||||||||||||||
|
|
|
Dow Technology Investments LLC
|
Delaware
|
||||||||||||||
|
|
Union Carbide Customer Services Pte. Ltd.
|
Singapore
|
|||||||||||||||
|
|
Union Carbide Middle East Limited
|
Delaware
|
|||||||||||||||
|
|
Union Carbide Philippines (Far East), Inc.
|
Philippines
|
|||||||||||||||
|
|
Union Carbide South Africa (Proprietary) Limited
|
South Africa
|
|||||||||||||||
|
|
Union Polymers Sdn. Bhd.
|
Malaysia
|
|||||||||||||||
|
|
Westbridge Insurance Ltd.
|
Vermont
|
|||||||||||||||
|
Warbler I LLC
|
Delaware
|
||||||||||||||||
|
*
|
Location of incorporation or organization. Primary location of organization is reported for partnerships.
|
1.
|
These companies are 50 percent owned, nonconsolidated affiliates of The Dow Chemical Company and are accounted for using the equity method. Separate financial statements of these companies are not included in this Annual Report on Form 10-K. These companies are not controlled, directly or indirectly, by The Dow Chemical Company. Subsidiaries of these companies, if any, are not listed in this Exhibit 21.
|
|
Consent of Independent Registered Public Accounting Firm
|
EXHIBIT 23.1
|
|
|
|
Form S-4:
|
|
|
|
No.
|
333-88443
|
|
|
Form S-8:
|
|
|
|
Nos.
|
33-61795
|
|
333-40271
|
|
333-91027
|
|
333-103519
|
|
333-220352
|
/s/ DELOITTE & TOUCHE LLP
|
Deloitte & Touche LLP
|
Midland, Michigan
|
February 11, 2019
|
|
Ankura Consulting Group, LLC's Consent
|
EXHIBIT 23.2
|
|
|
|
Form S-4:
|
|
|
|
No.
|
333-88443
|
|
|
Form S-8:
|
|
|
|
Nos.
|
33-61795
|
|
333-40271
|
|
333-91027
|
|
333-103519
|
|
333-220352
|
/s/ B. THOMAS FLORENCE
|
B. Thomas Florence
|
Senior Managing Director
|
Ankura Consulting Group, LLC
|
February 11, 2019
|
|
|
The Dow Chemical Company and Subsidiaries
|
|
EXHIBIT 31.1
|
|
|
|
|
|
1.
|
I have reviewed this annual report on Form 10-K of The Dow Chemical Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ JIM FITTERLING
|
Jim Fitterling
|
Chief Executive Officer
|
|
|
The Dow Chemical Company and Subsidiaries
|
|
EXHIBIT 31.2
|
|
|
|
|
|
1.
|
I have reviewed this annual report on Form 10-K of The Dow Chemical Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ HOWARD UNGERLEIDER
|
Howard Ungerleider
|
President and Chief Financial Officer
|
|
|
The Dow Chemical Company and Subsidiaries
|
|
EXHIBIT 32.1
|
|
|
|
|
|
1.
|
the Annual Report on Form 10-K of the Company for the year ended
December 31, 2018
as filed with the Securities and Exchange Commission (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ JIM FITTERLING
|
Jim Fitterling
|
Chief Executive Officer
|
February 11, 2019
|
|
|
The Dow Chemical Company and Subsidiaries
|
|
EXHIBIT 32.2
|
|
|
|
|
|
1.
|
the Annual Report on Form 10-K of the Company for the year ended
December 31, 2018
as filed with the Securities and Exchange Commission (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ HOWARD UNGERLEIDER
|
Howard Ungerleider
|
President and Chief Financial Officer
|
February 11, 2019
|