DOW INC
For the period ended Mar 31, 2024. Filed Apr 26, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed Apr 26, 2024
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Segments and Geographic Regions
NOTE 19 –SEGMENTS AND GEOGRAPHIC REGIONS
Dow’s measure of profit/loss for segment reporting purposes is Operating EBIT as this is the manner in which the Company's chief operating decision maker assesses performance and allocates resources. The Company defines Operating EBIT as earnings (i.e., "Income (loss) before income taxes") before interest, excluding the impact of significant items. Operating EBIT by segment includes all operating items relating to the businesses; items that principally apply to Dow as a whole are assigned to Corporate.
| Segment Information | Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Materials & Coatings | Corp. | Total |
|---|---|---|---|---|---|
| In millions | |||||
| Net sales | $5,430 | $3,008 | $2,152 | $175 | $10,765 |
| Equity in earnings (losses) of nonconsolidated affiliates | $25 | $(15) | $6 | $1 | $17 |
| Dow Inc. Operating EBIT 1 | $605 | $87 | $41 | $(59) | $674 |
| Net sales | $6,114 | $3,378 | $2,276 | $83 | $11,851 |
| Equity in earnings (losses) of nonconsolidated affiliates | $21 | $(73) | $3 | $1 | $(48) |
| Dow Inc. Operating EBIT 1 | $642 | $123 | $35 | $(92) | $708 |
- Operating EBIT for TDCC for the three months ended March 31, 2024 and 2023 is substantially the same as that of Dow Inc. and therefore has not been disclosed separately in the table above. A reconciliation of "Net income" to Operating EBIT is provided in the following table.
| Reconciliation of "Net income (loss)" to Operating EBIT | Three Months Ended | |
|---|---|---|
| In millions | Mar 31, 2024 | Mar 31, 2023 |
| Net income (loss) | $538 | $(73) |
| + Credit for income taxes | (89) | (47) |
| Income (loss) before income taxes | $449 | $(120) |
| - Interest income | 65 | 76 |
| + Interest expense and amortization of debt discount | 199 | 185 |
| - Significant items | (91) | (719) |
| Operating EBIT | $674 | $708 |
The following tables summarize the pretax impact of significant items by segment excluded from Operating EBIT:
| Significant Items by Segment | Three Months Ended Mar 31, 2024 | ||||
|---|---|---|---|---|---|
| Pack. & Spec. Plastics · Ind. Interm. & Infrast. · Perf. Mat. & Coatings · Corp. · Total | |||||
| In millions | |||||
| Restructuring, implementation and efficiency costs, and asset related charges - net 1 | $(37) | $(8) | $— | $(46) | $(91) |
| Total | $(37) | $(8) | $— | $(46) | $(91) |
- Includes restructuring charges and implementation and efficiency costs associated with the Company's 2023 Restructuring Program. Also includes impairment charges related to the write-down of certain manufacturing assets. See Note 4 for additional information.
| Significant Items by Segment | Three Months Ended Mar 31, 2023 | ||||
|---|---|---|---|---|---|
| Pack. & Spec. Plastics · Ind. Interm. & Infrast. · Perf. Mat. & Coatings · Corp. · Total | |||||
| In millions | |||||
| Restructuring, implementation and efficiency costs, and asset related charges - net 1 | $(1) | $(40) | $(67) | $(443) | (551) |
| Litigation related charges, awards and adjustments 2 | — | (177) | — | — | (177) |
| Indemnification and other transactions related costs 3 | — | — | — | 9 | 9 |
| Total | $(1) | $(217) | $(67) | $(434) | $(719) |
Includes restructuring charges and implementation and efficiency costs associated with the Company's 2023 Restructuring Program. Also includes certain gains and losses associated with previously impaired equity investments.
Includes a loss associated with legacy agricultural products groundwater contamination matters. See Note 11 for additional information.
Primarily related to charges associated with agreements entered into with DuPont and Corteva as part of the separation and distribution which, among other matters, provides for cross-indemnities and allocations of obligations and liabilities for periods prior to, at and after the completion of the separation.
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