UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

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

For the fiscal year ended December 31, ~~2024~~2025

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

For the transition period from ____________________ to ____________________

Commission File Number: 1-1463

UNION CARBIDE CORPORATION

(Exact name of registrant as specified in its charter)


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

7501 State Highway 185 North, Seadrift, TX 77983

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: 361-553-2769

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

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

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

☐ Yes R No

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

☐ Yes R No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

R Yes ☐ No

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

R Yes ☐ No

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

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☑

Smaller reporting company

☐

Emerging growth company

☐

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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

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

☐ Yes R No

At February 43, ~~2025~~2026, 935.51 shares of common stock were outstanding, all of which were held by the registrant’s parent, The Dow Chemical Company.

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

DOCUMENTS INCORPORATED BY REFERENCE

None

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Union Carbide Corporation

ANNUAL REPORT ON FORM 10-K

For the Fiscal Year Ended December 31, ~~2024~~2025

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		PAGE
PART I
Item 1.	Business.	5
Item 1A.	Risk Factors.	7
Item 1B.	Unresolved Staff Comments.	1213
Item 1C.	Cybersecurity.	1213
Item 2.	Properties.	1415
Item 3.	Legal Proceedings.	1415
Item 4.	Mine Safety Disclosures.	1415
PART II
Item 5.	Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.	1516
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations.	1516
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk.	2425
Item 8.	Financial Statements and Supplementary Data.	2526
	Consolidated Statements of Income.	2728
	Consolidated Statements of Comprehensive Income.	2829
	Consolidated Balance Sheets.	2930
	Consolidated Statements of Cash Flows.	3031
	Consolidated Statements of Equity.	3132
	Notes to the Consolidated Financial Statements.	3233
Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.	5961
Item 9A.	Controls and Procedures.	5961
Item 9B.	Other Information.	5961
PART III
Item 10.	Directors, Executive Officers and Corporate Governance.	6062
Item 11.	Executive Compensation.	6062
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.	6062
Item 13.	Certain Relationships and Related Transactions, and Director Independence.	6062
Item 14.	Principal Accounting Fees and Services.	6062
PART IV
Item 15.	Exhibits, Financial Statement Schedules.	6163
Item 16.	Form 10-K Summary.	6365
SIGNATURES		6567

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Union Carbide Corporation and Subsidiaries

Throughout this Annual Report on Form 10-K, except as otherwise indicated by the context, the terms "Corporation" or "UCC" as used herein mean Union Carbide Corporation and its subsidiaries.

CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS

Certain statements in this report are "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements often address expected future business and financial performance, financial condition, and other matters, and often contain words or phrases such as “anticipate,” “believe,” "could," “estimate,” “expect,” “intend,” “may,” “opportunity,” “outlook,” “plan,” “project,” “seek,” “should,” “strategy,” “target,” “will,” “will be,” “will continue,” “will likely result,” “would” and similar expressions, and variations or negatives of these words or phrases.

Forward-looking statements are based on current assumptions and expectations of future events that are subject to risks, uncertainties and other factors that are beyond the Corporation’s control, which may cause actual results to differ materially from those projected, anticipated or implied in the forward-looking statements and speak only as of the date the statements were made. These factors include, but are not limited to: sales of UCC's products; UCC's expenses, future revenues and profitability; any sanctions, export restrictions, supply chain disruptions or increased economic uncertainty related to the ongoing conflicts between Russia and Ukraine and in the Middle East; capital requirements and need for and availability of financing; unexpected barriers in the development of technology, including with respect to UCC’s contemplated capital and operating projects; significant litigation and environmental matters and related contingencies and unexpected expenses; the success of competing technologies that are or may become available; the ability to protect UCC's intellectual property in the United States and abroad; developments related to contemplated restructuring activities and proposed divestitures or acquisitions such as workforce reduction, manufacturing facility and/or asset closure and related exit and disposal activities, and the benefits and costs associated with each of the foregoing; fluctuations in energy and raw material prices; management of process safety and product stewardship; changes in public sentiment and political leadership; increased concerns about plastics in the environment and lack of a circular economy for plastics at scale; changes in consumer preferences and demand; changes in laws and regulations, political conditions, tariffs and trade policies or industry development; global economic and capital markets conditions, such as inflation, market uncertainty, interest and currency exchange rates, and equity and commodity prices; business, logistics and supply disruptions; security threats, such as acts of sabotage, terrorism or war, including the ongoing conflicts between Russia and Ukraine and in the Middle East; weather events and natural disasters; disruptions in the Corporation’s information technology networks and systems, including the impact of cyberattacks; and, since The Dow Chemical Company ("TDCC"), a wholly owned subsidiary of Dow Inc. (together, with TDCC and its consolidated subsidiaries, "Dow"), is the primary customer of UCC: Dow's ability to realize its commitment to carbon neutrality on the contemplated timeframe; the size of the markets for Dow’s products and services and its ability to compete in such markets; Dow's ~~failure~~ability to develop and market new products and optimally manage product life cycles; the rate and degree of market acceptance of Dow’s products; changes in relationships with Dow’s significant customers and suppliers; and any global and regional economic impacts of a pandemic or other public health-related risks and events on the Corporation’s business.

Where, in any forward-looking statement, an expectation or belief as to future results or events is expressed, such expectation or belief is based on the current plans and expectations of management and expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. A detailed discussion of principal risks and uncertainties which may cause actual results and events to differ materially from such forward-looking statements is included in the section of this Annual Report on Form 10-K titled "Risk Factors." These are not the only risks and uncertainties that the Corporation faces. There may be other risks and uncertainties that the Corporation is unable to identify at this time or that it does not currently expect to have a material impact on its business. If any of those risks or uncertainties develops into an actual event, it could have a material adverse effect on the Corporation’s business. The Corporation assumes no obligation to update or revise publicly any forward-looking statements whether because of new information, future events, or otherwise, except as required by securities and other applicable laws.

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Union Carbide Corporation and Subsidiaries
PART I


ITEM 1. BUSINESS

THE CORPORATION

Union Carbide Corporation is a chemicals and polymers company that has been a wholly owned subsidiary of The Dow Chemical Company ("TDCC") since 2001. TDCC has been a wholly owned subsidiary of Dow Inc. since 2019, and Dow Inc. operates all of its businesses through TDCC. Except as otherwise indicated by the context, the terms "Corporation" or "UCC" as used herein mean Union Carbide Corporation and its consolidated subsidiaries and references to "Dow" refer to Dow Inc., together with TDCC and its consolidated subsidiaries.

TDCC conducts its worldwide operations through global businesses and the Corporation's business activities comprise components of TDCC's global businesses rather than stand-alone operations. Further, the Corporation sells substantially all of its products to TDCC in order to simplify the customer interface process at prices determined in accordance with the terms of an agreement between UCC and TDCC. The Corporation's Board of Directors, acting pursuant to the authority delegated to it by TDCC, functions as the Corporation's chief operating decision maker ("CODM") to assess UCC's results and allocate resources for its operations. The Corporation's results are reported as a single operating segment as the consolidated statements of income are presented to the CODM without further disaggregation.

Available Information

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

PRODUCTS

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

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

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

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

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

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Solvents and Intermediates - includes oxo aldehydes, acids and alcohols used as chemical intermediates and industrial solvents and in herbicides, plasticizers, paint dryers, jet-turbine lubricants, lube oil additives, and food and feed preservatives; and esters, which serve as solvents in industrial coatings and printing inks and in the manufacturing processes for pharmaceuticals and polymers.

Technology Licensing and Catalysts - includes catalysts for supply and licensing of the METEOR™ Process for EO/EG and the LP OXO℠ process for oxo alcohols; and licensing of the METEOR™ Process for EO/EG and the LP OXO℠ process for oxo alcohols.

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

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

RAW MATERIALS

UCC operates in an integrated manufacturing environment. Basic raw materials are processed through many stages to produce a number of products that are sold as finished goods at various points in those processes. Hydrocarbon-based raw materials are the major raw material streams that feed production of the Corporation's finished goods. UCC purchases hydrocarbon-based raw materials including ethane, propane and butane as feedstocks, which are used in the production of saleable products. The ~~Company~~Corporation also purchases and sells certain monomers, primarily ethylene and propylene, to balance internal production and internal consumption.

UCC's primary source of these raw materials are natural gas liquids ("NGLs"), which are derived from natural gas and crude oil production. Given recent advancements in shale gas, shale oil and conventional drilling techniques, the Corporation expects these raw materials to be in abundant supply. UCC's suppliers of these raw materials include regional, international and national oil and gas companies.

COMPETITION

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

PATENTS, LICENSES AND TRADEMARKS

The Corporation continually applies for and obtains U.S. and foreign patents that relate to a wide variety of products and processes, has a substantial number of pending patent applications throughout the world and is licensed under a number of patents. At December 31, ~~2024~~2025, the Corporation owned 6356 active U.S. patents and ~~362~~347 active foreign patents related to a wide variety of products and processes. These patents expire as follows:

Remaining Life of Patents Owned at Dec 31, 2024	United States	Rest of World
Remaining Life of Patents Owned at Dec 31, 2025	United States	Rest of World
Within 5 years	1726	~~110~~157
6 to 10 years	3821	~~209~~141
11 to 15 years	76	4244
16 to 20 years	13	15
Total	6356	~~362~~347

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

PROTECTION OF THE ENVIRONMENT

Matters pertaining to the environment are discussed in Management's Discussion and Analysis of Financial Condition and Results of Operations, and Notes 1 and 12 to the Consolidated Financial Statements.

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OTHER ACTIVITIES

Dividends and Distributions

On a quarterly basis, the Corporation's Board of Directors ("Board") reviews and determines if there will be a dividend distribution to its parent company and sole shareholder, TDCC. The Board takes into consideration the level of earnings and cash flows, among other factors, in determining the amount of the dividend distribution. ~~Based on these factors, the Board did not declare a cash dividend to TDCC in the fourth quarter of 2024.~~ The Corporation declared and paid cash dividends to TDCC of $~~228~~28 million in ~~2024~~2025 and $~~512~~228 million in ~~2023~~2024. ~~On January 27, 2025, the Board approved a dividend to TDCC of $28 million, payable on or before March 28, 2025.~~

Additionally, as part of TDCC's continuing efforts to optimize its intercompany financing structure, the Corporation received a distribution of $735 million in 2025, from Dow International Holdings Company, a related company in which the Corporation holds a minority ownership interest, which was subsequently distributed to TDCC. See Note 17 to the Consolidated Financial Statements for additional information about the Corporation's dividends and distributions.


ITEM 1A. RISK FACTORS

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

CLIMATE CHANGE - RELATED RISKS

Climate Change: Climate change-related risks and uncertainties, legal or regulatory responses to climate change and a failure of TDCC's parent company, Dow Inc., to meet its climate change commitments could negatively impact the Corporation’s results of operations and/or financial condition.

UCC sells substantially all of its products to TDCC in order to simplify the worldwide customer interface process and, as a result, the Corporation is subject to many of the same global risk factors facing TDCC and its parent company, Dow Inc. (collectively, "Dow"), including those presented by climate change. The Corporation is subject to increasing climate-related risks and uncertainties, many of which are outside of its control. Climate change may result in more frequent and damaging severe weather and weather-related events, potential changes in precipitation patterns and extreme variability in weather patterns. These short- and long-term weather and weather-related events can disrupt the operations of the Corporation as well as those of its customers, end-use customers, partners and vendors due to damage to local infrastructure and other property damage limiting site access, and causing water scarcity and lack of access to high-quality water, among other factors. These risks and uncertainties may also directly or indirectly impact decisions to invest in the construction and/or renovation of new or existing manufacturing sites and other Corporation facilities and locations.

The transition to lower greenhouse gas emissions technology, the effects of carbon pricing and changes in public sentiment, incentives, regulations, taxes, public mandates or requirements and increases in climate-related lawsuits, insurance premiums and implementation of more robust disaster recovery and business continuity plans could increase costs to maintain or resume the Corporation’s operations, which would negatively impact the Corporation’s results of operations.

In 2020, Dow announced commitments to reduce its net annual Scope 1 and 2 carbon dioxide equivalent emissions by an additional 5 million metric tons, approximately a 15 percent reduction compared with its 2020 baseline, by 2030 (the 2020 baseline represents a 15 percent reduction in greenhouse gas emissions since 2005) and its intention to be carbon neutral by 2050 (Scope 1+2+3, as defined by the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard, plus product benefits).

The commitments reflect Dow's current plans and targets and are not guarantees that Dow will be able to achieve them. The execution and achievement of these commitments within ~~the currently~~ projected ~~costs~~cost estimates and expected timeframes may impact the Corporation's operations and are also subject to risks and uncertainties which include, but are not limited to: advancement, availability, development and affordability of technology necessary to achieve these commitments; unforeseen design, operational and technological difficulties; availability and cost of necessary materials and components; adapting products to end-use customer preferences and end-use customer acceptance of sustainable supply chain solutions; changes in public sentiment and political leadership, including government incentives and tax credits to promote emission reductions; ~~and~~ the ability of Dow and its consolidated subsidiaries to comply with changing regulations, taxes, mandates or requirements related to greenhouse gas emissions or other climate-related matters, including prescriptive reporting of climate-related matters; and Dow's ability to adequately fund capital expenditures necessary to complete its planned projects. In addition, standards for tracking and reporting on sustainability matters have not been harmonized, continue to evolve and may change over time, which could result in significant revisions to Dow's performance metrics, commitments or reported progress in achieving such commitments. Given the focus on sustainable investing, if Dow fails to meet its climate change commitments within the committed timeframe, coupled with its significant investments to meet those commitments, and adopt policies and practices to enhance sustainability, Dow's reputation and its customer and other stakeholder relationships could be negatively impacted, reducing demand for Dow and the Corporation's products, and it may be

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could result in significant revisions to Dow's performance metrics, commitments or reported progress in achieving such commitments. If Dow fails to meet its climate change commitments within the committed timeframe, coupled with its significant investments to meet those commitments, and adopt policies and practices to enhance sustainability, Dow's reputation and its customer and other stakeholder relationships could be negatively impacted, reducing demand for Dow and the Corporation's products, and it may be more difficult for Dow and its consolidated subsidiaries to compete effectively or gain access to financing on acceptable terms, which could negatively impact the Corporation’s financial condition, results of operations and cash flows.

MACROECONOMIC RISKS

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

The Corporation sells substantially all of its products to TDCC, which operates in a competitive, global environment, and competes worldwide for sales. Increased levels of competition ~~could~~have ~~result~~resulted in lower prices orand lower sales volume, which ~~could~~ have had a negative impact on the Corporation's results of operations. These factors are expected to continue and may worsen in the near term, which could continue to challenge the Corporation's ongoing results of operations. To address these challenges amidst the ongoing macroeconomic uncertainty, the Corporation has taken targeted cost reduction initiatives and will continue to seek additional actions to mitigate the impact of macroeconomic uncertainty. Sales of TDCC's products are also subject to extensive federal, state, local and foreign laws and regulations; trade agreements; import and export controls; taxes; and duties and tariffs. The imposition of additional regulations, controls, taxes, ~~and~~ duties and tariffs or changes to bilateral and regional trade agreements could result in lower sales ~~volume~~ for the Corporation's products, which could negatively impact the Corporation's results of operations.

~~Economic~~During ~~conditions~~2025, ~~around~~ the ~~world,~~United States changed its long-standing trade policies and inannounced significant new tariffs, with certain ~~industries~~exceptions, ~~and~~on ~~regions~~virtually inall ~~which~~imported goods. These actions triggered the ~~Corporation~~negotiation ~~and~~of ~~TDCC~~new dotrade ~~business,~~agreements ~~also~~with ~~impact~~certain ~~sales~~U.S. ~~price~~trading ~~and~~partners. ~~volume~~While ~~and~~these ~~affect~~negotiations resulted in the ~~efficacy~~reduction of certain recently imposed tariffs, the ~~Corporation's~~average ~~supply~~U.S. ~~chain~~tariff rate remains at its highest level since the 1930s. ~~For~~In ~~example~~response to the changes in U.S. trade policies, ~~market~~certain ~~uncertainty~~U.S. ~~and~~trading anpartners ~~economic~~imposed ~~downturn~~retaliatory ~~driven~~tariffs byon ~~inflationary~~U.S. ~~pressures~~imports. Shifts in tariffs, ~~higher~~trade ~~input~~agreements, ~~costs~~import/export restrictions, trade sanctions, sector specific trade barriers, and ~~margin~~other ~~compression~~governmental ~~have~~trade ~~reduced~~actions, ~~demand~~whether ~~for~~enacted by the ~~Corporation~~United States or other countries, especially those instituted in UCC's ~~products~~or TDCC's significant markets or markets where their significant customers or suppliers are located, ~~resulting~~and inthe ~~decreased~~associated uncertainty of long-term trade policies, could impact the Corporation's sales volume, insales ~~recent~~price, ~~years~~and ~~which~~production ~~has~~and ~~yet~~other tocosts. ~~fully~~Changes ~~recover.~~in ~~Adverse~~trade ~~economic~~policies ~~conditions~~may also ~~caused~~cause ~~supply~~disruptions ~~chain~~to ~~constraints.~~material ~~These~~sourcing ~~factors~~and ~~have~~availability, ~~had~~global asupply ~~negative~~chains ~~impact~~and onlogistics ~~the~~and ~~Corporation's~~access ~~results~~to ofend ~~operations~~markets. Additionally, ~~political~~changes ~~tensions;~~in ~~war,~~U.S. ~~including~~trade ~~the~~policy ~~ongoing~~and ~~conflicts~~associated responses from trading partners may create shifts in global market dynamics, disrupt the ~~Middle~~long-term ~~East~~planning process for governments and ~~between~~private ~~Russia~~enterprises and ~~Ukraine~~result ~~with~~in ~~the~~continued ~~related~~global ~~sanctions~~financial market volatility. The impact of these changes in trade policies and ~~export~~the ~~restrictions;~~resulting ~~terrorism;~~trade ~~epidemics;~~and ~~pandemics;~~market oruncertainty ~~political~~could ~~instability~~have ina negative impact on the ~~geographic~~Corporation’s ~~regions~~results orof ~~industries~~operations. There can be no assurance that, in ~~which~~the ~~UCC~~future, ~~products~~the ~~are~~United ~~sold~~States, ~~could~~other ~~also~~countries ~~reduce~~or ~~demand~~international ~~for~~trade ~~these~~bodies ~~products~~will ~~and~~not ~~result~~institute innew ~~decreased~~tariffs ~~sales~~or ~~volume~~more restrictive trade policies or ~~supply~~remedies ~~chain~~and, ~~disruptions~~as a result, ~~which~~the ~~could~~Corporation ~~have~~may aface ~~negative~~additional uncertainty and adverse impact on ~~UCC's~~its business, financial condition and results of operations.

InEconomic ~~February~~conditions ~~2022~~around the world, ~~Russia~~and ~~invaded~~in ~~Ukraine~~certain ~~resulting~~industries inand ~~the~~geographic ~~United~~regions ~~States,~~in ~~Canada,~~which the ~~European~~Corporation ~~Union~~ and ~~other~~TDCC ~~countries~~do ~~imposing~~business, ~~economic~~also ~~sanctions~~impact onsales ~~Russia.~~price ~~Dow~~and ~~suspended~~volume ~~purchases~~and ofaffect ~~feedstocks~~the ~~and~~efficacy ~~energy~~of ~~from~~the ~~Russia.~~Corporation's ~~Investments~~supply inchain. ~~and~~For ~~flow~~example, oflong-term ~~Dow's~~market ~~materials~~uncertainty, ~~into~~an ~~Russia~~economic ~~have~~downturn ~~been~~driven ~~stopped.~~by ~~These~~trade ~~actions~~policies ~~have~~and ~~not~~inflationary ~~had~~pressures, ~~and~~higher ~~are~~input ~~not~~costs ~~expected~~and tomargin compression have areduced ~~material~~demand ~~impact~~for on the Corporation’'s ~~financial~~products, ~~condition~~resulting orin ~~results~~decreased ofsales ~~operations.~~price ~~However,~~and ~~the~~volume. ~~fluidity~~Adverse ~~and~~economic ~~continuation~~conditions ofhave ~~the~~also ~~conflict~~caused ~~may~~supply ~~result~~chain inconstraints. ~~additional~~These ~~economic~~factors ~~sanctions~~have had and ~~other~~are ~~impacts~~continuing ~~which~~to ~~could~~ have a negative impact on ~~Dow’~~the Corporation's ~~financial condition,~~ results of operations. ~~and~~Additionally, ~~cash~~political ~~flows.~~conditions ~~These~~or ~~include~~tensions; ~~decreased~~war, ~~sales;~~invasion ~~supply~~or ~~chain~~conflict, ~~and~~including ~~logistics~~the ~~disruptions;~~ongoing ~~volatility~~conflicts in ~~foreign~~the ~~exchange~~Middle ~~rates~~East and ~~interest~~between ~~rates;~~Russia ~~inflationary pressures on~~ and ~~availability~~Ukraine ofwith ~~raw~~the ~~materials~~related sanctions and ~~energy,~~export ~~most~~restrictions; ~~notably~~terrorism; inepidemics; ~~Europe~~pandemics; ~~and~~or ~~heightened~~political ~~cybersecurity~~instability ~~threats.~~in ~~Further,~~ the ~~intensity~~geographic ~~and~~regions ~~duration~~or ofindustries in which the ~~conflict~~Corporation inoperates ~~the~~or ~~Middle~~its ~~East~~products ~~and~~are ~~potential~~sold ~~expansion~~could offurther ~~the~~reduce ~~hostilities~~demand infor ~~the~~these ~~region~~products ~~are~~and ~~difficult~~result toin ~~predict~~decreased ~~and~~sales ~~could~~price ~~disrupt~~and ~~the~~volume ~~Corporation's~~or supply chain ~~operations~~disruptions, which could have a negative impact on the Corporation's results of operations.

~~Financial~~The ~~Flexibility:~~Russia-Ukraine ~~Market~~conflict ~~conditions~~has ~~could~~been ~~reduce~~ongoing ~~TDCC'~~for more than three years since Russia’s ~~financial~~February ~~flexibility~~2022 invasion of Ukraine, ~~which~~and ~~could~~although ~~impact~~there ~~the~~have ~~financial~~been ~~flexibility~~recent efforts to seek a resolution, it remains unclear if these will be successful. In light of sanctions imposed by the ~~Corporation.~~United States, Canada, the European Union and other countries as

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

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

While the Corporation has frozen its defined benefit pension plans and its other postretirement benefit plan (the "plans"), the Corporation continues to sponsor the plans. The assets of the Corporation's funded plans are primarily invested in fixed income securities, equity securities of U.S. and foreign issuers and alternative investments, including investments in real estate, private equity and absolute return strategies. Changes in the market value of plan assets, investment returns, discount rates, mortality rates, regulations and health care cost trends may affect the funded status of the Corporation's plans and could cause volatility in the net periodic benefit cost and future funding requirements of the plans. A significant increase in the Corporation's obligations or future funding

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~~requirements~~a ~~could~~result of this conflict, TDCC ceased in-bound investment to Russia and maintains reasonable, risk-based measures to ship into Russia only limited goods that comply with applicable legal restrictions. These actions have not had and are not expected to have a ~~negative~~material impact on the Corporation's financial condition or results of operations. The situation remains fluid and the ongoing conflict may result in additional economic sanctions or other measures, which could have a negative impact on TDCC’s financial condition, results of operations and cash flows. ~~for~~These aimpacts ~~particular~~could ~~period~~include decreased sales; supply chain and logistics disruptions; volatility in foreign exchange rates and interest rates; inflationary pressures on and availability of raw materials and energy, most notably in Europe; and heightened cybersecurity threats. Further, the intensity and duration of conflicts in the Middle East and potential expansion of hostilities in the region are difficult to predict and could disrupt the Corporation's ~~financial~~supply ~~condition~~chain operations, which could have a negative impact on the Corporation's results of operations.

Financial Flexibility: Market conditions, availability of credit and changes in TDCC's credit ratings could reduce TDCC's financial flexibility, which could impact the financial flexibility of the Corporation.

Adverse economic conditions, a contraction in the availability of credit in the marketplace, or changes in TDCC's credit ratings, including failure to maintain an investment grade rating, could increase borrowing costs and reduce TDCC's sources of liquidity, restricting TDCC's flexibility to respond to changing business and economic conditions or to fund capital projects or working capital needs. Since TDCC is a major service provider, material debtor, and the major customer of the Corporation, reduced financial flexibility for TDCC could impact the financial flexibility of the Corporation, which could negatively impact the Corporation's results of operations.

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

The Corporation's business operations are subject to the cyclical nature of the supply-demand balance in the chemical industry. The balance of supply relative to demand within the industry ~~may~~has been and continues to be significantly impacted by the addition of new capacity, especially for basic commodities where capacity is generally added in large increments as world-scale facilities are built. This ~~may~~has ~~result~~resulted in excess capacity which ~~can~~has disrupted and continues to disrupt regional industry supply and demand balances, resulting in downward pressure on prices and decreased operating rates, which ~~could~~has ~~negatively~~had and continues to have a negative impact on the Corporation's results of operations.

LEGAL AND REGULATORY RISKS

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

The Corporation is subject to extensive federal, state, local and foreign laws, regulations, rules and ordinances relating to pollution, protection of the environment, climate change, greenhouse gas emissions and the generation, storage, handling, transportation, treatment, disposal and remediation of hazardous substances and waste materials. In addition, the Corporation may have costs related to environmental remediation and restoration obligations associated with past and current sites as well as related to its past or current waste disposal practices or other hazardous materials handling. Although management will estimate and accrue liabilities for these obligations, it is reasonably possible that the Corporation’s ultimate cost with respect to these matters could be significantly higher, which could negatively impact the Corporation’s financial condition and results of operations. Costs and capital expenditures relating to environmental, health or safety matters are subject to evolving regulatory requirements and depend on the timing of the promulgation and enforcement of specific standards which impose the requirements. Moreover, changes in environmental regulations could inhibit or interrupt the Corporation's operations or require modifications to its facilities. Further, additional environmental disclosure obligations require and may continue to require the Corporation to implement new practices and reporting processes and have created and will continue to create additional compliance risk. Accordingly, environmental, health or safety regulatory matters could result in significant unanticipated costs or liabilities. For additional information, see Part II, Item 7. Other Matters, Environmental Matters in Management’s Discussion and Analysis of Financial Condition and Results of Operations.

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the requirements. Moreover, changes in environmental regulations could inhibit or interrupt the Corporation's operations or require modifications to its facilities. Further, additional environmental disclosure obligations require and may continue to require the Corporation to implement new practices and reporting processes and have created and will continue to create additional compliance risk. Accordingly, environmental, health or safety regulatory matters could result in significant unanticipated costs or liabilities. For additional information, see Part II, Item 7. Other Matters, Environmental Matters in Management’s Discussion and Analysis of Financial Condition and Results of Operations.

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

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

The Corporation is and has been involved in a large number of asbestos-related suits filed primarily in state courts during the past several decades. At December 31, ~~2024~~2025, the Corporation's total asbestos-related liability for pending and future claims, including future defense and processing costs, was $~~791~~708 million ($~~867~~791 million at December 31, ~~2023~~2024). See Notes 1 and 12 to the Consolidated Financial Statements for more information on asbestos-related matters.

Health and Safety: Increased concerns regarding the safe use of chemicals and plastics in commerce and their potential impact on the environment have resulted in more restrictive regulations and could lead to new regulations.

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

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stringent regulatory intervention and litigation. These concerns could also influence public perceptions, the viability or continued sales of the Corporation's products, the Corporation's reputation and the cost to comply with regulations. In addition, terrorist attacks and natural disasters have increased concerns about the security and safety of chemical production and distribution. These concerns could have a negative impact on the Corporation's results of operations.

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

Plastic Waste: Increased concerns regarding plastic waste in the environment, resulting in the demand for substitute materials; brand owners selectively reducing their use of plastic products; a lack of plastic waste collection and recycling infrastructure and a failure to develop circular plastic materials or a circular economy for plastics; and/or the development of new or more restrictive regulations and rules related to plastic waste and related emissions could reduce demand for the Corporation’s plastic products and could negatively impact the Corporation’s financial results.

Plastics have faced increasing public scrutiny due to low recycling rates and the presence of plastic waste in the environment, including the world’s oceans and rivers, and pollution associated with the manufacture of plastics. Accordingly, regulators, manufacturers, brand owners and consumers are driving demand for materials made with recycled content, bio-based materials and materials made with low or zero carbon emission options, and local, state, federal and foreign governments are proposing and implementing regulations to address the global plastic waste challenge, including, but not limited to, extended producer responsibility fees, recycled content mandates, taxes on plastics at the national level and bans on non-essential items. Further, an intergovernmental negotiation committee is in the process of negotiating an international legally binding instrument to end plastic pollution.

Substantially all of the Corporation's sales are to TDCC, a wholly owned subsidiary of Dow and one of the world’s largest plastics producers. TDCC sells plastic products that continue to enable increasing quality and standards of living and offer significant greenhouse gas reductions compared with alternative solutions. In order to both maintain the benefits of plastics, meet growing demand for circular and renewable plastics and advance efforts to end plastic pollution in the environment, Dow is partnering with other organizations to bring the waste back into the circular economy. Dow's Transform the Waste target (announced in October 2022) aims to transform plastic waste and other forms of waste to commercialize 3 million metric tons of circular and renewable solutions annually by 2030. Further, Dow has committed to reducing its net annual greenhouse gas emissions and intends to be carbon neutral by 2050 (Scope 1+2+3, as defined by the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard, plus product benefits).10

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Substantially all of the Corporation's sales are to TDCC, one of the world’s largest plastics producers. TDCC sells plastic products that continue to enable increasing quality and standards of living and offer significant greenhouse gas reductions compared with alternative solutions. In order to both maintain the benefits of plastics, meet growing demand for circular and renewable plastics and advance efforts to end plastic pollution in the environment, Dow is partnering with other organizations to bring the waste back into the circular economy. Dow's circularity targets aim to transform plastic waste and other forms of waste to commercialize 3 million metric tons of circular and renewable solutions by 2030. Further, Dow has committed to reducing its net annual greenhouse gas emissions and intends to be carbon neutral by 2050 (Scope 1+2+3, as defined by the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard, plus product benefits).

Without the expansion of proper waste collection and recycling infrastructure and the development of a circular economy for plastics at scale, along with increased pressure to reduce the use of plastics, the Corporation could experience reduced demand for its polyethylene products, which could negatively impact the Corporation's financial condition, results of operations and cash flows.

OPERATIONAL RISKS

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

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

Feedstock and energy costs generally follow price trends in crude oil and natural gas, which are sometimes volatile. Power prices often follow general energy trends, and are additionally subject to short-term surfeits and shortages related to, for example, intermittent wind and solar generation, and power generation and transmission outages. Ultimately, the ability to pass on underlying cost increases is dependent on market conditions. Conversely, when feedstock and energy costs decline, selling prices generally decline as well. As a result, volatility in these costs could impact the Corporation's results of operations.

10While the Corporation expects abundant and cost-advantaged supplies of natural gas liquids ("NGLs") in the United States to persist for the foreseeable future, if NGLs become significantly less advantaged than crude oil-based feedstocks, it could have a negative impact on the Corporation's results of operations and future investments. Also, if the Corporation's key suppliers of feedstocks and energy, which may include limited or single source suppliers, are unable to provide the raw materials or energy required for production, it could have a negative impact on the Corporation's results of operations.

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While the Corporation expects abundant and cost-advantaged supplies of natural gas liquids ("NGLs") in the United States to persist for the foreseeable future, if NGLs become significantly less advantaged than crude oil-based feedstocks, it could have a negative impact on the Corporation's results of operations and future investments. Also, if the Corporation's key suppliers of feedstocks and energy are unable to provide the raw materials required for production, it could have a negative impact on the Corporation's results of operations.

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

As a diversified chemical manufacturing company, the Corporation's operations at each site, including maintenance of its facilities, the transportation of supplies and products, cyberattacks, the Corporation's expanding utilization of artificial intelligence ("AI") in the Corporation's operations, including but not limited to its manufacturing process controls, supply chain optimization, and human resources analysis, and by its suppliers and customers, and the complex and evolving regulatory environment surrounding AI; pandemics and other public health-related events or severe weather conditions and other natural phenomena (such as freezing, drought, hurricanes, earthquakes, tsunamis, floods, etc.) could result in an unplanned or unintended event that could be significant in scale and could negatively impact operations, neighbors or the public at large, which could have a negative impact on the Corporation's results of operations.

Major hurricanes and other weather-related events have caused significant disruption in UCC's operations on the U.S. Gulf Coast, logistics across the region, and the supply of certain raw materials, which had an adverse impact on volume and cost for some of UCC's products. Due to the Corporation's substantial presence on the U.S. Gulf Coast, similar severe weather conditions or other natural phenomena in the future could negatively impact UCC's results of operations. Other non-weather-related unplanned events have also caused disruptions in UCC’s operations at various sites. While the Corporation has processes in place to minimize the risks and impacts of such events, such unplanned future events could negatively impact the Corporation’s results of operations.

Cybersecurity Threat: Disruption of the Corporation's information technology, data security, and other operating or third-party systems, including disruption of the ability to safely and reliably operate the Corporation's facilities; the risk of loss of the Corporation's proprietary information including trade secrets, know-how or other sensitive business information; and the risk of loss or security of the private data of the Corporation, its customers and its employees could negatively impact the Corporation's results of operations, financial condition and reputation.

UCC relies on various information systems, including information systems operated by Dow and by third-parties, to support safe, efficient and reliable business and operating processes and activities and to safeguard its proprietary information assets, including trade secrets, know-how and other sensitive, business critical information. These systems, which may also include embedded artificial intelligence ("AI"), are critical to the Corporation's process to accurately report financial results for management and external reporting purposes and to ensure compliance with financial reporting, legal and tax requirements in the United States and around the world. These systems may also be used to collect and process sensitive customer and personal employee data the Corporation may be legally required to protect.

Increased global cybersecurity vulnerabilities, threats and targeted cyberattacks, which are becoming more sophisticated as attackers increase their utilization of developing techniques and tools, including AI, continue to pose risks to UCC’s products, systems and networks, and the confidentiality, availability and integrity of the Corporation’s data. These vulnerabilities also expose the Corporation’s customers’, suppliers’ and third-party service providers to loss. In addition, the Corporation is exposed to similar risks resulting from cyberattacks that are experienced by its suppliers and other vendors. As a result, cyberattacks, internal and external security breaches, and attacks and security breaches of third-party systems could disrupt UCC's operations, compromise UCC’s proprietary and confidential, business critical information, jeopardize UCC's ability to safeguard and maintain accurate data, including personal data, and harm UCC's reputation which could result in litigation, enforcement actions, including fines, penalties and disruption of UCC's right to operate in certain jurisdictions, and significant remediation costs. Additionally, UCC’s and/or Dow's use of AI software may create additional risks related to the unintentional disclosure of proprietary, confidential, personal or otherwise sensitive information.

While the Corporation is part of Dow's comprehensive cybersecurity program that is continuously reviewed, maintained and upgraded, cyberattacks by nation-state organizations, crime organizations and other hackers have become increasingly sophisticated, and it is possible for such attacks to remain undetected for an extended period of time. Such attacks could have a material negative impact on the Corporation’s results of operations, financial position and reputation. More information on the Corporation’s processes for assessing, identifying and managing material risks from cybersecurity threats, including management’s role and the Board's oversight of such processes, can be found in Item 1C. Cybersecurity.

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~~PANDEMIC~~Cybersecurity Threat: Disruption of the Corporation's information technology, data security, and other operating or third-party ~~RELATED~~systems, ~~RISKS~~including disruption of the ability to safely and reliably operate the Corporation's facilities; the risk of loss of the Corporation's proprietary information including trade secrets, know-how or other sensitive business information; and the risk of loss or security of the private data of the Corporation, its customers and its employees could negatively impact the Corporation's results of operations, financial condition and reputation.

UCC relies on various information systems, including information systems operated by Dow and by third-parties and which may also include embedded AI, to support safe, efficient and reliable business and operating processes and activities and to safeguard its proprietary information assets, including trade secrets, know-how and other sensitive, business critical information. These systems are critical to the Corporation's process to accurately report financial results for management and external reporting purposes and to ensure compliance with financial reporting, legal and tax requirements in the United States and around the world. These systems may also be used to collect and process sensitive customer and personal employee data the Corporation may be legally required to store, process and protect in accordance with complex country- and territory-specific laws that continue to evolve, violations of which could result in significant criminal or civil sanctions, investigations or enforcement actions.

Increased global cybersecurity vulnerabilities, threats and targeted cyberattacks, which are becoming more sophisticated as attackers increase their utilization of developing techniques and tools, including AI, continue to pose risks to UCC’s products, systems and networks, and the confidentiality, availability and integrity of the Corporation’s data, and may surpass the Corporation's and Dow's current safeguards. These vulnerabilities also expose the Corporation’s customers, suppliers and third-party service providers to loss. In addition, the Corporation is exposed to similar risks resulting from cyberattacks that are experienced by its suppliers and other vendors. As a result, cyberattacks, internal and external security breaches, and attacks and security breaches of third-party systems could disrupt UCC's operations, compromise UCC’s proprietary and confidential, business critical information, jeopardize UCC's ability to safeguard and maintain accurate data, including personal data, and harm UCC's reputation which could result in litigation, enforcement actions, including fines, penalties and disruption of UCC's right to operate in certain jurisdictions, and significant remediation costs. Additionally, UCC’s and/or Dow's use of AI software may create additional risks related to the unintentional disclosure of proprietary, confidential, personal or otherwise sensitive information.

While Dow and its subsidiaries, including the Corporation, have been targets of cyberattacks, including phishing, social engineering, industrial espionage and other malicious attacks, and have determined that certain of these attacks have resulted in and could continue to result in unauthorized third parties gaining access to Dow's and the Corporation's information systems and certain confidential business information, the Corporation is part of Dow's comprehensive cybersecurity program that is continuously reviewed, maintained and upgraded and, to date, these attacks have not materially impacted the Corporation. However, cyberattacks by nation-state organizations, crime organizations and other hackers continue to occur and are increasingly sophisticated, and these attacks may occur and remain undetected for an extended period of time. These attacks could have a material negative impact on the Corporation’s results of operations, financial position and reputation. More information on the Corporation’s processes for assessing, identifying and managing material risks from cybersecurity threats, including management’s role and the Board's oversight of such processes, can be found in Item 1C. Cybersecurity.

Public Health Crisis: A public health crisis or global outbreak of disease could have a negative effect on the Corporation's manufacturing operations, supply chain and workforce, creating disruptions that could have a substantial negative impact on the Corporation’s results of operations, financial condition and cash flows.

UCC sells substantially all of its products to TDCC in order to simplify the worldwide customer interface process and, as a result, the Corporation is subject to many of the same global risk factors facing TDCC, including those that may be presented by a public health crisis. A public health crisis, including a pandemic similar in nature to ~~coronavirus disease 2019~~COVID-19, could impact all geographic regions where UCC's products are produced and sold. The global, regional and local spread of a public health crisis could result in, and in the past has resulted in, significant global mitigation measures, including government-directed quarantines, social distancing and shelter-in-place mandates, travel restrictions and/or bans, mask and vaccination mandates, restrictions on large gatherings and restricted access to certain corporate facilities and manufacturing sites. Business disruptions and market volatility resulting from a public health crisis could have a substantial negative impact on the Corporation's results of operations, financial condition and cash flows. The adverse impact of a pandemic could include, and in the past has included, without limitation, a decrease in demand for certain of the Corporation's products; price declines; reduced profitability; supply chain disruptions impeding the Corporation's ability to ship and/or receive product; temporary idling or permanent closure of select manufacturing facilities and/or manufacturing assets; asset impairment charges; interruptions or limitations to manufacturing operations imposed by local, state or federal governments; reduced market liquidity and increased borrowing costs; workforce absenteeism and distraction; labor shortages; increased cybersecurity risk and data accessibility disruptions due to remote working arrangements; and workforce reductions. Additional risks may include, but are not limited to: shortages of key raw materials; additional asset impairment charges; increased obligations related to the Corporation’s pension and other postretirement benefit plans; and tax valuation allowances and may also have the effect of heightening many of the other risks described in this "Risk Factors" section.

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to manufacturing operations imposed by local, state or federal governments; reduced market liquidity and increased borrowing costs; workforce absenteeism and distraction; labor shortages; increased cybersecurity risk and data accessibility disruptions due to remote working arrangements; and workforce reductions. Additional risks may include, but are not limited to: shortages of key raw materials; additional asset impairment charges; increased obligations related to the Corporation’s pension and other postretirement benefit plans; and tax valuation allowances and may also have the effect of heightening many of the other risks described in this "Risk Factors" section.


ITEM 1B. UNRESOLVED STAFF COMMENTS

None.


ITEM 1C. CYBERSECURITY

Risk Management and Strategy

Dow has processes in place to identify, assess and monitor material risks from cybersecurity threats, including the material risks of the Corporation. These processes are part of Dow’s overall enterprise risk management process and have been embedded in ~~Dow’s~~its operating procedures, internal controls and information systems.

Dow's comprehensive cybersecurity and information security framework includes risk assessment and mitigation through a threat intelligence-driven approach, application controls, and enhanced security with ransomware defense. The framework leverages International Organization for Standardizations 27001/27002 standards for general information technology controls, International Society of Automation/International Electrotechnical Commission standards for industrial automation, the National Institute of Standards and Technology Cyber Security Framework ("NIST CSF") for measuring overall readiness to respond to ~~cyber~~cybersecurity threats, and Sarbanes-Oxley for assessment of internal controls. In addition, Dow maintains business continuity and disaster recovery plans as well as a cybersecurity insurance policy.

Dow has comprehensive processes to manage cybersecurity risks when engaging with third-party service providers, including reviewing questionnaires and independent quantitative scores of the vendor’s ~~cyber~~cybersecurity hygiene, maintaining robust controls to address and mitigate significant risks that may arise, and performing ongoing assessments and reviews throughout the duration of the engagement.

Dow has established cybersecurity and information security awareness training programs. Formal training on topics relating to Dow’s cybersecurity, data privacy and information security policies and procedures is mandatory at least annually for all employees, contractors and third parties with access to Dow’s network. Training is administered and tracked through online learning modules. Training topics include how to escalate suspicious activities including phishing, viruses, spams, deep fakes, insider threats, suspect human behaviors or safety issues. Based on role and location, some employees receive additional in-depth training to provide more comprehensive knowledge on potential risks related to their individual job responsibilities. Training is supplemented through regular Dow company-wide communications with frequent updates to educate on the latest adversary trends and social engineering techniques.

12Additionally, Dow engages in cybersecurity crisis response simulations to assess Dow’s ability to adapt to information and operational technology threats. Improper or illegitimate use of Dow’s information system resources or violation of Dow’s information security policies and procedures is subject to disciplinary action. Dow’s security posture is supported by a comprehensive defense-in-depth strategy that relies on layers of technology including, but not limited to, Multi-Factor Authentication and Zero Trust principles to ensure that access to information and communication is vetted and secure.

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related to their individual job responsibilities. Training is supplemented through regular Dow company-wide communications with frequent updates to educate on the latest adversary trends and social engineering techniques.

Additionally, Dow engages in cyber crisis response simulations to assess Dow’s ability to adapt to information and operational technology threats. Improper or illegitimate use of Dow’s information system resources or violation of Dow’s information security policies and procedures is subject to disciplinary action. Dow’s security posture is supported by a comprehensive defense-in-depth strategy that relies on layers of technology including Multi-Factor Authentication and principles of Zero Trust to ensure that access to information and communication is vetted and secure.

Dow also utilizes internal and external audits and assessments, vulnerability testing, governance processes over outsourced service providers, active risk management and benchmarking against peers in the industry to validate Dow’s security posture. Dow also engages external firms to measure Dow’s NIST CSF maturity level.

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As of the date of this report, no risks from cybersecurity threats, including those resulting from any previous cybersecurity incidents, have materially affected, or are reasonably likely to materially affect, the Corporation, including its business strategy, results of operations or financial condition. Although the Corporation has mature processes in place to identify and mitigate potential risks from cybersecurity threats, such risks cannot be completely eliminated. More information on the risks of cybersecurity threats and potential impact to the Corporation can be found in Item 1A. Risk Factors.

Governance

Role of Management

Dow’s ~~Information~~information ~~Systems~~systems organization is led by Dow’s ~~Chief~~chief ~~Information~~information ~~and~~& ~~Digital~~digital ~~Officer~~officer, who reports to Dow's ~~Chief~~chief ~~Operating~~operating ~~Officer~~officer, and is responsible for administration of the cybersecurity and information security framework and risk management, including that of the Corporation, with oversight by the Dow Inc. Audit Committee.

Dow’s ~~Chief~~chief ~~Information~~information ~~and~~& ~~Digital~~digital ~~Officer~~officer has formal education in information technology and more than 30 years of experience in information systems and technology, including as the vice president of Global Information Technology. ~~Prior~~at toCargill, ~~joining Dow~~Incorporated, ~~the~~prior ~~Chief~~to ~~Information~~joining ~~and Digital Officer held a variety of leadership roles including vice president of Information Technology at Cargill, Incorporated~~Dow. The ~~Chief~~chief ~~Information~~information ~~and~~& ~~Digital~~digital ~~Officer~~officer receives regular updates on cybersecurity matters, results of mitigation efforts and cybersecurity incident response and remediation.

Dow management responsible for developing and executing its cybersecurity policies is comprised of individuals with either formal education and degrees in information technology or cybersecurity, or with experience working in information technology and cybersecurity, including relevant experience in security related industries. Additionally, leaders in Dow’s information technology function receive periodic training and education on cybersecurity related topics. Certain leaders also obtain industry certifications, such as Certified Information Systems Security Professional or Certified Information Security Manager.

Dow’s Cyber Security Operations Center (“CSOC”) serves as the central point for all cybersecurity incidents and reporting, including incidents that directly target employees or Dow internal information systems and incidents originating from third parties. The CSOC provides end-to-end operations for purposes of monitoring, detecting, alerting and responding to ~~cyber~~cybersecurity incidents. The CSOC evaluates each incident in terms of its impact on Dow’s and the Corporation's operations, ability to conduct business with customers and suppliers, brand reputation and health, safety or the environment, and the speed and degree to which the incident has been contained. The CSOC is also responsible for activating the containment and resolution efforts and third-party service providers are engaged where appropriate to support Dow through the resolution of the incident. The CSOC escalates incidents with significant impact and pervasiveness to Dow’s Corporate Crisis Management Team for further action. After initial identification, the CSOC monitors all cybersecurity incidents for changes in degree of impact or pervasiveness.

The CSOC reports all cybersecurity incidents to Dow’s Materiality Assessment Team, which includes senior representatives from information technology, finance, legal and other relevant business functions. If the Materiality Assessment Team initially assesses that a cybersecurity incident may be material, the CSOC immediately notifies Dow's Cybersecurity Executive Steering Team for final determination of materiality. Dow's Cybersecurity Executive Steering Team consists of Dow's chief operating officer; chief financial officer; chief information & digital officer; chief information security officer; senior vice president, operations, manufacturing & engineering; chief technology & sustainability officer; vice president of government affairs; and general counsel. The CSOC escalates incidents with significant impact and pervasiveness to Dow’s Corporate Crisis Management Team for further action. After initial identification, the CSOC monitors all cybersecurity incidents for changes in degree of impact or pervasiveness to ensure timely escalation and response. Decisions of Dow's Cybersecurity Executive Steering Team are communicated through established governance channels, including reporting to Dow's Audit Committee. This process is integrated into Dow’s overall incident response and risk management framework, ensuring alignment between operational response and strategic oversight.

Role of the Corporation's Board

The Corporation's Board of Directors ("Board") recognizes the importance of cybersecurity in safeguarding the Corporation’s sensitive data. The Board is responsible for overseeing overall risk management for the Corporation, including review and approval of the enterprise risk management approach and processes implemented by management to identify, assess, manage and mitigate risk.

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The Corporation’s Board receives information and updates periodically with respect to the effectiveness of Dow’s cybersecurity and information security framework, data privacy and risk management, which includes that of the Corporation. The Board also receives updates on material incidents relating to information systems security, including cybersecurity incidents.

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ITEM 2. PROPERTIES

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


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

All of UCC's plants are owned or leased, subject to certain easements of other persons that, in the opinion of management, do not substantially interfere with the continued use of such properties or materially affect their value. No title examination of the properties has been made for the purpose of this report.

A summary of property, classified by type, is contained in Note 8 to the Consolidated Financial Statements.


ITEM 3. LEGAL PROCEEDINGS

Asbestos-Related Matters

For additional information, see Asbestos-Related Matters in Management's Discussion and Analysis of Financial Condition and Results of Operations, and Notes 1 and 12 to the Consolidated Financial Statements.


ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

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Union Carbide Corporation and Subsidiaries
PART II


ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

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


ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Pursuant to General Instruction I of Form 10-K "Omission of Information by Certain Wholly-Owned Subsidiaries," this section includes only management's narrative analysis of the results of operations for the year ended December 31, ~~2024~~2025, the most recent fiscal year, compared with the year ended December 31, ~~2023~~2024, the fiscal year immediately preceding it.

References to "TDCC" refer to The Dow Chemical Company and its consolidated subsidiaries, except as otherwise indicated by the context. Union Carbide Corporation (the "Corporation" or "UCC") has been a wholly owned subsidiary of TDCC since 2001. TDCC has been a wholly owned subsidiary of Dow Inc. since 2019. References to "Dow" refer to Dow Inc., together with TDCC and its consolidated subsidiaries. Additionally, the term "Diamond Infrastructure Solutions" means Dow InfraCo, LLC, TDCC's consolidated variable interest entity that owns and operates infrastructure assets at certain TDCC and UCC locations on the U.S. Gulf Coast, which include UCC's sites in St. Charles, Louisiana, and Seadrift and Texas City, Texas. Infrastructure-related products and services provided to UCC by Diamond Infrastructure Solutions are billed to UCC in accordance with the terms of agreements between the parties.

Divestment of U.S. Gulf Coast Infrastructure Assets

As part of the Corporation's and TDCC's application of a best-owner mindset when reviewing non-product producing assets and to allow UCC and TDCC to have more visibility into the operations and economics of such assets, on November 1, 2023, UCC and certain other TDCC subsidiaries contributed certain production supporting infrastructure assets on the U.S. Gulf Coast (which are not product-producing assets themselves) to a TDCC subsidiary that will manage the contributed assets ("TDCC Infrastructure Subsidiary") in exchange for a membership interest ("Common Control Membership Interest") in the TDCC Infrastructure Subsidiary. The carrying value of net assets contributed by UCC was $389 million. In connection with this contribution, TDCC and UCC entered into various agreements, designating UCC to receive or provide certain site services as defined under the agreements. Such agreements were designed to ensure the continuation of services to support UCC's existing operations. UCC recognized equity earnings of $10 million in the fourth quarter of 2023 related to this investment.

On December 1, 2023, the Corporation sold its Common Control Membership Interest to another TDCC subsidiary in exchange for a $1,543 million term loan receivable ("Infrastructure Divestment"), which bears interest based on alternative reference rates and matures on December 1, 2043. This transaction was accounted for as a transfer between entities under common control, which resulted in an increase to additional paid in capital of $893 million, net of tax of $251 million.

RESULTS OF OPERATIONS

Net Sales

Total net sales for ~~2024~~2025 were $43,~~277~~ 989 million, ~~which was flat~~ compared with total net sales of $4,~~296~~277 million in ~~2023~~2024, a decrease of 7 percent. Net sales to related companies, principally to TDCC, were $43,~~157~~ 885 million for ~~2024~~2025, ~~which was flat~~ compared with $4,~~149~~157 million for ~~2023~~2024, a decrease of 7 percent. Selling prices to TDCC are determined in accordance with the terms of an agreement between UCC and TDCC.

15Average selling price decreased 5 percent in 2025 compared with 2024. Price decreased in most product lines, with the most significant decreases in polyethylene, ethyleneamines, acrylic monomers and ethanolamines, partially offset by price increases primarily in vinyl acetate monomers and ethylene glycol. Volume decreased 2 percent in 2025 compared with 2024. Volume decreased in most product lines, with the most significant decreases in ethylene glycol, vinyl acetate monomers and glycol ethers, due primarily to lower demand and planned maintenance turnaround activity. Volume decreases were partially offset by increases primarily in ethyleneamines and ethylene oxide.

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Average selling price decreased 8 percent in 2024 compared with 2023. Price decreased in most product lines in response to lower downstream pricing, driven by industry supply additions and lower global energy and feedstock costs, with the most significant decreases in plastics used for wire and cable applications, vinyl acetate monomers, polyethylene and glycol ethers. Volume increased 8 percent in 2024 compared with 2023. Volume increased in most product lines, with the most significant increases in polyethylene, glycol ethers and plastics used for wire and cable applications. Volume increases were primarily due to increased demand, improved internal and external raw material supply availability and decreased impact of planned maintenance turnaround activity for certain products and certain unplanned events compared with 2023.

Additionally, ethylene oxide volume for 2024 largely recovered from lost production due to a freeze event and a steam outage in the first quarter of 2024, planned maintenance turnaround activity in the second quarter of 2024 and the proactive response to hurricane threats in the third quarter of 2024. Ethanolamines volume for 2024 also largely recovered from the impacts of downtime due to planned maintenance turnaround activity in the third quarter of 2024, which had been extended due to equipment failures and other unplanned maintenance; and raw material, power and steam limitations.

Cost of Sales

Cost of sales in ~~2024~~2025 was $34,~~968~~ 111 million, up 4 percent from $3,~~804~~ 968 million in ~~2023~~2024. Cost of sales as a percentage of total net sales increased to 92103.81 percent in ~~2024~~2025 compared with 8892.58 percent in ~~2023,~~2024. ~~primarily~~The ~~due~~increase toin ~~lower~~cost ~~selling~~of ~~prices;~~sales ~~spending~~as ~~for~~a ~~unplanned~~percentage ~~events~~of ~~and~~net ~~additional~~sales ~~discovery~~was ~~during~~primarily ~~planned~~due ~~maintenance~~to ~~turnaround~~higher ~~activities~~activity-based ~~and preparation~~costs, ~~start-up~~including ~~and~~products ~~recovery from hurricane threats~~ and ~~impacts;~~services, acharged ~~one-time~~by ~~materials disposal charge~~ related toparties, ahigher ~~divested~~ethylene ~~business;~~prices and ~~higher~~the ~~costs~~impact of ~~site~~lower ~~services~~operating ~~provided~~rates byresulting ~~the~~from ~~TDCC~~lower ~~Infrastructure~~demand, ~~Subsidiary;~~ partially offset by ~~related~~cost ~~party~~reduction ~~insurance recoveries in 2024 related to an unplanned shutdown of a manufacturing site in 2023~~initiatives. See Note 17 to the Consolidated Financial Statements for additional information about related party transactions.

Restructuring and Asset Related Charges - Net

In the first quarter of 2023, the Corporation initiated restructuring actions to achieve its structural cost improvement initiatives in response to the continued economic impact from the global recessionary environment and to enhance its agility and long-term competitiveness across the economic cycle. The program includes workforce cost reductions and actions to rationalize the Corporation's manufacturing assets, which includes asset write-down and write-off charges. As a result of these actions, the Corporation recorded pretax restructuring charges of $14 million, included in "Restructuring and asset related charges - net" in the consolidated statements of income. See Note 4 to the Consolidated Financial Statements for additional information about the Corporation's restructuring activities and related charges.

The Corporation expects to incur additional costs in the future related to its restructuring activities. Future costs are expected to include demolition costs related to closed facilities and restructuring plan implementation costs; these costs will be recognized as incurred. The Corporation also expects to incur additional employee-related costs, including involuntary termination benefits, related to its other optimization activities. These costs cannot be reasonably estimated at this time.

Sundry Income (Expense) - Net

Sundry income (expense) – net includes a variety of income and expense items such as charges for management services provided by TDCC, non-operating pension and other postretirement benefit plan credits or costs, commissions, gains and losses on sales of investments and assets, and gains and losses on foreign currency exchange.

Sundry income (expense) – net for 2024 was expense of $110 million compared with expense of $25 million in 2023. Sundry income (expense) – net in 2024 included a $2 million gain on the sale of the Corporation's remaining ownership interest in a TDCC joint venture to a TDCC subsidiary and lower overall non-operating pension and other postretirement benefit plan costs compared with 2023, which included a significant pension settlement charge.

Sundry income (expense) – net in 2023 included a $206 million gain on the sale of an initial portion of the Corporation's ownership interest in a TDCC joint venture to a TDCC subsidiary and equity earnings of $10 million from the Corporation's investment in the TDCC Infrastructure Subsidiary, partially offset by non-operating pension and other postretirement benefit plan costs, which included a pension settlement charge of $149 million. See Notes 5, 15 and 17 to the Consolidated Financial Statements for additional information.

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Restructuring and Asset Related Charges - Net

In the first quarter of 2025, the Corporation initiated targeted actions to further achieve its cost reduction initiatives in response to ongoing macroeconomic weakness, while reinforcing long-term competitiveness across the economic cycle. As a result of these actions, the Corporation recorded pretax charges of $6 million for severance and related benefit costs, included in "Restructuring and asset related charges - net" in the consolidated statements of income. These actions are substantially complete. See Note 4 to the Consolidated Financial Statements for additional information about the Corporation's restructuring activities and related charges.

The Corporation expects to incur additional costs in the future related to its restructuring activities, which will be recognized as incurred. The Corporation also expects to incur additional employee-related costs, including involuntary termination benefits, related to its other optimization activities. These costs cannot be reasonably estimated at this time.

Sundry Income (Expense) - Net

Sundry income (expense) – net includes a variety of income and expense items such as charges for management services provided by TDCC, dividend income, non-operating pension and other postretirement benefit plan credits or costs, commissions, gains and losses on sales of investments and assets, and gains and losses on foreign currency exchange.

Sundry income (expense) – net for 2025 was income of $579 million compared with expense of $110 million in 2024. Sundry income (expense) – net in 2025 included a $735 million distribution from a related company in which the Corporation holds an ownership interest, partially offset by pension settlement charges of $37 million. Sundry income (expense) – net in 2024 included a $2 million gain on the sale of the Corporation's remaining ownership interest in a TDCC joint venture to a TDCC subsidiary. See Notes 5, 15 and 17 to the Consolidated Financial Statements for additional information.

Interest Income

Interest income for ~~2024~~2025 was $~~134~~100 million, compared with $49134 million in ~~2023~~2024. The ~~increase~~decrease in interest income primarily resulted from decreased interest ~~earned on the term loan related to the December 2023 Infrastructure Divestment~~rates. See Note 17 to the Consolidated Financial Statements for additional information related to the Corporation's related party investment, and cash management ~~and loan~~ activities.

~~Interest~~Provision ~~Expense~~(Credit) ~~and~~for ~~Amortization~~Income ~~of Debt Discount~~Taxes

~~Interest~~The ~~expense~~Corporation ~~and~~reported ~~amortization~~a ofcredit ~~debt~~for ~~discount~~income ~~was~~taxes of $842 million in 2025, which resulted in a negative effective tax rate of 8.1 percent. In 2024, ~~compared~~the ~~with~~Corporation reported a tax provision of $1647 million, which resulted in ~~2023,~~an ~~reflecting~~effective ~~reduced~~tax ~~interest~~rate ~~expense~~of ~~resulting~~15.8 percent. The effective tax rate for 2025 was favorably impacted by a nontaxable distribution received from ~~the~~a ~~maturity~~related company. The tax rate for 2024 was favorably impacted by U.S. federal and ~~payment~~state ofaccrual ~~long-term~~to ~~debt~~return ofadjustments. ~~$129 million~~The underlying factors affecting UCC's overall effective tax rates are summarized in ~~April~~Note 6 ~~2023~~to the Consolidated Financial Statements. See ~~Note~~Notes 115 and 17 to the Consolidated Financial Statements for additional information ~~related~~about to the ~~Corporation's~~related ~~debt~~company ~~financing activities~~distribution.

~~Provision~~On July 4, 2025, U.S. legislation formally titled "An Act to Provide for ~~Income~~Reconciliation ~~Taxes~~Pursuant to Title II of H. Con. Res. 14” (“the Act”) and commonly referred to as the One Big Beautiful Bill Act was signed into law. The Act, among other things, extended key provisions of the 2017 Tax Cuts and Jobs Act and introduced targeted changes to the U.S. federal income tax regime. The Act has not materially impacted the Corporation's effective tax rate.

The Corporation reported a tax provision of $47 million in 2024, which resulted in an overall effective tax rate of 15.8 percent. In 2023, the Corporation reported a tax provision of $73 million, which resulted in an overall effective tax rate of 16.1 percent. The tax rate for 2024 was favorably impacted by U.S. federal and state accrual to return adjustments. The tax rate for 2023 was favorably impacted by interest on accrued taxes receivable and a benefit related to the sale of a portion of its 50 percent ownership interest in a joint venture with TDCC. The underlying factors affecting UCC's overall effective tax rates are summarized in Note 6 to the Consolidated Financial Statements.

Net Income Attributable to UCC

The Corporation reported net income of $~~250~~ 560 million in ~~2024~~2025, compared with net income of $~~381~~ 250 million in ~~2023~~2024. Net income in 2025 was driven by a distribution from a related company as part of TDCC's intercompany financing arrangements, partially offset by negative sales margins, due primarily to lower demand and higher activity-based and raw material costs.

Capital Expenditures

Capital spending in ~~2024~~2025 was $~~338~~ 137 million, compared with $~~274~~ 338 million in ~~2023~~2024, as ~~the~~projects ~~Corporation increased investment in production assets, primarily~~ on the U.S. Gulf Coast were completed.

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Pension Plans

~~As announced in 2021, UCC’s pension plans were frozen for substantially all employees who participated in the U.S. defined benefit pension programs effective December 31, 2023.~~ In the fourth quarter of ~~2023~~2025, ~~the~~as ~~Corporation~~part ~~spun off a portion~~ of its ~~existing~~ongoing ~~tax-qualified~~pension ~~U.S~~derisking ~~defined~~initiatives, ~~benefit~~the ~~pension~~Corporation ~~plan~~terminated ~~into~~certain aU.S. ~~new~~ tax-qualified pension ~~plan~~plans, which ~~includes~~included the tax-qualified benefit obligations for substantially all employees hired after January 1, 2008. These employees earned benefits based on a set percentage of annual pay, plus interest,. ~~and~~As ~~the~~part ~~spin~~ of ~~this~~the plan ~~provides~~termination ~~the~~process, ~~Corporation~~participants ~~the~~were ~~ability~~provided towith ~~separately~~various ~~manage~~benefit ~~the~~payment ~~assets~~or ~~and~~distribution ~~obligations~~options. ofAll ~~plans~~benefit ~~with~~options ~~like~~were ~~benefits.~~funded Inwith ~~the~~existing ~~second~~plan ~~quarter~~assets ofand ~~2024,~~did asnot ~~part~~require ofany ~~its~~cash ~~ongoing~~funding ~~pension~~from ~~de-risking initiatives,~~ the Corporation. ~~initiated~~These ~~the~~actions ~~termination~~resulted ofin ~~the new tax~~non-~~qualified~~cash ~~pension~~settlement ~~plan.~~charges ~~As part~~ of ~~the~~$37 million, ~~plan~~primarily ~~termination~~related ~~process,~~to the ~~Corporation~~accelerated ~~will~~recognition ~~offer participants~~ of ~~this~~the ~~plan~~accumulated ~~annuity~~actuarial orlosses ~~lump~~of ~~sum~~the ~~distribution options~~plans. ~~Final~~See ~~asset~~Note 15 ~~distributions~~to ~~are~~the ~~expected~~Consolidated toFinancial beStatements ~~paid~~for ~~from~~additional ~~plan~~information ~~assets~~related into the ~~fourth quarter of 2025. The~~ Corporation's ~~anticipates that these asset distributions will result in~~ pension ~~settlement charges, with the amounts dependent on various factors, including interest rates, plan asset returns, annuity pricing and participant distribution elections~~plans.

~~See~~Distribution ~~Note 15~~Received tofrom ~~the~~Related ~~Consolidated Financial Statements for additional information related to the Corporation's pension plans.~~Company

As part of TDCC's continuing efforts to optimize its intercompany financing structure, the Corporation received a pro-rata distribution of a portion of a note receivable totaling $735 million during the year ended December 31, 2025, from Dow International Holdings Company, a related company in which the Corporation holds a minority ownership interest. The distribution was recorded in “Sundry income (expense) – net” in the consolidated statements of income and was subsequently distributed to TDCC and presented as "Distribution to parent" in the consolidated statements of equity. These nontaxable transactions were executed in accordance with TDCC's intercompany cash management process. See Note 17 to the Consolidated Financial Statements for additional information about the Corporation's dividends and distributions.

OTHER MATTERS

Recent Accounting Guidance

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

Critical Accounting Estimates

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

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Asbestos-Related Matters

The Corporation is and has been involved in a large number of asbestos-related suits filed primarily in state courts during the past several decades. These suits principally allege personal injury resulting from exposure to asbestos-containing products and frequently seek both actual and punitive damages. The alleged claims primarily relate to products that UCC sold in the past, alleged exposure to asbestos-containing products located on UCC’s premises, and UCC’s responsibility for asbestos suits filed against a former UCC subsidiary, Amchem Products, Inc. ("Amchem"). Each year, Ankura Consulting Group, LLC ("Ankura") performs a review for UCC based upon historical asbestos claims and resolution activity and historical defense spending. UCC compares current asbestos claim, resolution and defense spending activity to the results of the most recent Ankura study at each balance sheet date to determine whether the asbestos-related liability for pending and future claims, including future defense and processing costs, continues to be appropriate.

For additional information, see Part I, Item 3. Legal Proceedings; Asbestos-Related Matters in Management's Discussion and Analysis of Financial Condition and Results of Operations; and Notes 1 and 12 to the Consolidated Financial Statements.

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Environmental Matters

The Corporation determines the costs of environmental remediation of its facilities and formerly owned facilities based on evaluations of current law and existing technologies. Inherent uncertainties exist in such evaluations primarily due to unknown environmental conditions, changing governmental regulations and legal standards regarding liability, and emerging remediation technologies. The recorded liabilities are adjusted periodically as remediation efforts progress or as additional technical or legal information becomes available. At December 31, ~~2024~~2025, the Corporation had accrued obligations of $~~184~~188 million for probable environmental remediation and restoration costs, including $3539 million for the remediation of Superfund sites. This is management's best estimate of the costs for remediation and restoration with respect to environmental matters for which the Corporation has accrued liabilities, although it is reasonably possible that the ultimate cost with respect to these particular matters could range up to approximately two times that amount. For further discussion, see Environmental Matters in Notes 1 and 12 to the Consolidated Financial Statements.

Pension Plans and Other Postretirement Benefits

The amounts recognized in the consolidated financial statements related to pension and other postretirement benefits are determined from actuarial valuations. Inherent in these valuations are assumptions including expected return on plan assets, discount rates at which the liabilities could have been settled at December 31, ~~2024~~2025, rate of increase in future compensation levels, mortality rates and health care cost trend rates. These assumptions are updated annually and are disclosed in Note 15 to the Consolidated Financial Statements. In accordance with U.S. GAAP, actual results that differ from the assumptions are accumulated and amortized over future periods and, therefore, affect expense recognized and obligations recorded in future periods. The Corporation's pension plans ~~were~~are frozen ~~effective December 31~~and, ~~2023, and~~ therefore, participants do not accrue additional benefits for future service and compensation.

The Corporation uses the spot rate approach to determine the discount rate utilized to measure the service cost and interest cost components of net periodic pension and other postretirement benefit costs. Under the spot rate approach, the Corporation calculates service cost and interest cost by applying individual spot rates from the Willis Towers Watson U.S. RATE:Link 60-90 corporate yield curve (based on 60th to 90th percentile high-quality corporate bond yields) to the separate expected cash flow components of service cost and interest cost.

The Corporation determines the expected long-term rate of return on plan assets by performing a detailed analysis of key economic and market factors driving historical returns for each asset class and formulating a projected return based on factors in the current environment. Factors considered include, but are not limited to, inflation, real economic growth, interest rate yield, interest rate spreads, and other valuation measures and market metrics. The expected long-term rate of return for each asset class is then weighted based on the strategic asset allocation approved by the governing body for each plan. The Corporation's historical experience with the pension fund asset performance is also considered. The expected long-term rate of return is an assumption and not what is expected to be earned in any one particular year. The weighted-average long-term rate of return assumption used for determining net periodic pension expense for ~~2024~~2025 ~~and 2023~~ was 6.4033 percent. The weighted-average assumption to be used for determining ~~2025~~2026 net periodic pension expense is 6.3330 percent. Future actual pension expense will depend on future investment performance, changes in future discount rates and various other factors related to the population of participants in the Corporation's pension plans.

18The discount rates utilized to measure the pension and other postretirement benefit obligations are based on the yield on high-quality corporate fixed income investments at the measurement date. Future expected actuarially determined cash flows for the plans are individually discounted at the spot rates under the Willis Towers Watson U.S. RATE:Link 60-90 corporate yield curve (based on 60th to 90th percentile high-quality corporate bond yields) to arrive at the plan’s obligations as of the measurement date. The weighted-average discount rate utilized to measure pension obligations was 5.35 percent at December 31, 2025 and 5.67 percent at December 31, 2024.

The value of the Corporation's qualified plans' assets totaled $2.1 billion at December 31, 2025, a decrease from $2.2 billion at December 31, 2024. The net underfunded status of the Corporation's qualified plans increased by $18 million at December 31, 2025, compared with December 31, 2024. The Corporation's contributions to the qualified plans were insignificant in 2025. The Corporation uses a generational mortality table to determine the duration of its pension and other postretirement obligations.

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The ~~discount~~Corporation ~~rates~~bases ~~utilized~~the todetermination ~~measure~~of ~~the~~ pension ~~and~~expense ~~other~~on ~~postretirement~~a ~~benefit~~market-related ~~obligations~~valuation ~~are~~of ~~based~~plan onassets ~~the~~that ~~yield~~reduces onyear-to-year ~~high~~volatility. This market-~~quality~~related ~~corporate~~valuation ~~fixed~~recognizes ~~income~~investment ~~investments~~gains ator losses over a five-year period from the ~~measurement~~year ~~date.~~in ~~Future~~which ~~expected~~they ~~actuarially~~occur. ~~determined~~Investment ~~cash~~gains ~~flows~~or losses for ~~the~~this ~~plans~~purpose ~~are~~represent ~~individually~~the ~~discounted~~difference atbetween the ~~spot~~expected ~~rates~~return ~~under~~calculated using the ~~Willis~~market-related ~~Towers~~value ~~Watson~~of ~~U.S.~~plan ~~RATE:Link~~assets ~~60-90~~and ~~corporate~~the ~~yield~~actual ~~curve~~return (based on ~~60th~~the tomarket ~~90th~~value ~~percentile~~of ~~high~~plan assets. Since the market-~~quality~~related ~~corporate~~value ~~bond~~of ~~yields)~~plan toassets ~~arrive~~recognizes atgains ~~the~~or ~~plan’s~~losses ~~obligations~~over asa offive-year period, the ~~measurement~~future ~~date.~~value ~~The~~of ~~weighted-average~~plan ~~discount~~assets ~~rate~~will ~~utilized~~be toimpacted ~~measure~~when ~~pension~~previously ~~obligations~~deferred ~~was~~gains 5or losses are recorded.67 ~~percent~~Over atthe ~~December 31~~life of the plan, ~~2024~~both gains and ~~5.25 percent~~losses athave been recognized and amortized. At December 31, ~~2023~~2025, $219 million of net losses remain to be recognized in the calculation of the market-related value of plan assets. These net losses will result in increases in future pension expense as they are recognized in the market-related value of assets.

The ~~value~~net ~~of the Corporation's qualified plans' assets totaled $2.2 billion at December 31, 2024, a~~ decrease ~~from~~in ~~$2.4 billion~~the atmarket-related ~~December 31,~~value ~~2023. The net underfunded status~~ of ~~the~~assets ~~Corporation's~~due ~~qualified plans increased by $31 million at December 31, 2024, compared with December 31, 2023. The Corporation did not make contributions~~ to the ~~qualified~~recognition ~~plans~~of inprior ~~2024.~~losses ~~The~~(gains) ~~Corporation~~is ~~uses~~presented ain ~~generational mortality table to determine~~ the ~~duration~~following ~~of its pension and other postretirement obligations.~~table:

The Corporation bases the determination of pension expense on a market-related valuation of plan assets that reduces year-to-year volatility. This market-related valuation recognizes investment gains or losses over a five-year period from the year in which they occur. Investment gains or losses for this purpose represent the difference between the expected return calculated using the market-related value of plan assets and the actual return based on the market value of plan assets. Since the market-related value of plan assets recognizes gains or losses over a five-year period, the future value of plan assets will be impacted when previously deferred gains or losses are recorded. Over the life of the plan, both gains and losses have been recognized and amortized. At December 31, 2024, $435 million of net losses remain to be recognized in the calculation of the market-related value of plan assets. These net losses will result in increases in future pension expense as they are recognized in the market-related value of assets.


Net Decrease in Market-Related Asset Value Due to Recognition of Prior Losses (Gains)
In millions
2026	$	172
2027	31
2028	24
2029	(8)
Total	$	219

~~The~~Excluding ~~net~~the ~~decrease~~impact inof the ~~market-related~~Corporation's ~~value~~2025 ofderisking ~~assets~~activities, the Corporation expects pension expense to increase in 2026 by approximately $18 million. The increase is primarily due to the recognition of prior losses isunder ~~presented~~the inmarket-related ~~the~~valuation ~~following~~of ~~table:~~plan assets methodology described above.

Net Decrease in Market-Related Asset Value Due to Recognition of Prior Losses
In millions
2025	$	180
2026	183
2027	40
2028	32
Total	$	435

A 25 basis point increase in the long-term return on assets assumption would decrease the Corporation's total pension expense by $5 million for 2026. A 25 basis point decrease in the long-term return on assets assumption would increase the Corporation's total pension expense by $6 million for 2026. A 25 basis point increase or decrease in the discount rate assumption would not significantly impact the Corporation's total pension expense for 2026.

Excluding the impact of the Corporation's planned 2025 de-risking activities, the Corporation expects pension expense to increase in 2025 by approximately $11 million. The increase is driven primarily by lower expected returns on plan assets.

A 25 basis point increase or decrease in the long-term return on assets assumption would change the Corporation's total pension expense by $6 million for 2025. A 25 basis point increase or decrease in the discount rate assumption would not significantly impact the Corporation's total pension expense for 2025.

Income Taxes

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

At December 31, ~~2024~~2025, the Corporation had a net deferred tax asset balance of $~~253~~289 million, after valuation allowances of $1019 million. In evaluating the ability to realize the deferred tax assets, the Corporation relies on, in order of increasing subjectivity, taxable income in prior carryback years, the future reversals of existing taxable temporary differences, tax planning strategies and forecasted taxable income using historical and projected future operating results.

19The Corporation recognizes the financial statement effects of an uncertain tax position when it is more likely than not, based on technical merits, that the position will be sustained upon examination. At December 31, 2025, the Corporation had a liability for uncertain tax positions of $8 million. For additional information, see Note 6 to the Consolidated Financial Statements.

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The Corporation recognizes the financial statement effects of an uncertain tax position when it is more likely than not, based on technical merits, that the position will be sustained upon examination. At December 31, 2024, the Corporation had a liability for uncertain tax positions of $8 million. For additional information, see Note 6 to the Consolidated Financial Statements.

Environmental Matters

Environmental Policies

The Corporation is committed to world-class environmental, health and safety ("EH&S") performance, as demonstrated by a long-standing commitment to the American Chemistry Council's Responsible Care® program, asand ~~well as~~ a strong commitment to ~~Dow's~~deliver ~~2025~~against ~~Sustainability Goals and~~ Dow's ~~drive to deliver against its~~ targets around a circular economy and climate protection. These ~~goals and~~ targets set the standard for sustainability in the chemical industry, focusing on improvements in UCC's local corporate citizenship and product stewardship, and by actively pursuing methods to reduce the Corporation's environmental impact.

To help meet Dow’s public commitments, as well as the stringent laws and government regulations related to environmental protection and remediation to which its global operations are subject, UCC has well-defined policies, requirements and management systems. Dow's EH&S management system ("EMS") defines the "who, what, when and how" needed for the Corporation to implement Dow's policies and requirements and meet performance objectives, leadership expectations and public commitments. To ensure effective utilization, Dow's EMS is integrated into a company-wide management system for EH&S, Operations, Quality and Human Resources.

Dow believes third-party verification and transparent public reporting are cornerstones of world-class EH&S performance and building public trust. Numerous Dow sites in ~~Europe,~~the ~~Latin~~U.S. ~~America~~& Canada, Europe, Asia Pacific and ~~the~~Latin ~~U.S. & Canada~~America, including UCC sites, have received third-party verification of compliance with Responsible Care® and with outside specifications such as ISO-14001. Dow continues to be a global champion of Responsible Care® and has worked to broaden the application and impact of Responsible Care® around the world through engagement with ~~Dow's peer companies,~~ suppliers, customers and joint venture partners.

Chemical Security

Public and political attention continues to be placed on the protection of U.S. critical infrastructure, including the chemical industry, from security threats. Sabotage, terrorism, war, natural disasters and cybersecurity incidents have increased global concerns about the security and safety of chemical production and distribution. UCC continues to improve its security plans, placing emphasis on the safety of UCC communities and people by being prepared to meet risks at any level and to address both internal and external identifiable risks. UCC's security plans are designed to avert interruptions of normal business operations that could have a material impact on the Corporation's results of operations, financial condition and cash flows.

UCC is a Responsible Care® company and adheres to the Responsible Care® Security Code ("Security Code"), which requires that all aspects of security - including facility, transportation and cyberspace - be assessed and gaps addressed. Through global implementation of the Security Code, including voluntary security enhancements and upgrades, UCC has permanently heightened its level of security - not just in the United States, but worldwide. Further, the Corporation’s Distribution Risk Review process addresses potential threats in all modes of transportation across the supply chain. In 2019, Dow Inc. established its Global Security Operations Center ("GSOC") to provide 24-hour/day, 365-day/year real-time monitoring of global risks to Dow Inc. assets and people, which includes UCC assets and people. The GSOC employs state-of-the-art social media monitoring, threat reporting and geo-fencing capabilities to analyze global risks and report those risks, facilitating decision-making and actions to prevent Dow Inc. and UCC crises.

To reduce vulnerabilities, UCC maintains security measures that meet or exceed regulatory and industry security standards in all areas in which UCC operates. Assessment and improvement costs are not considered material to the Corporation's consolidated financial statements.

Climate Protection

Evaluation of climate-related risks and opportunities continues to be a catalyst for the development of Dow’s Decarbonize & Grow strategy (Dow’s climate transition plan), and its broad water~~-intensity~~ ~~goal~~stewardship and ~~its~~habitat ~~new~~conservation ~~nature goal~~efforts. Dow's science-based strategy includes a phased approach to decarbonize while meeting the growing demand for Dow's products and contributing to a low-carbon future through continued investment in new products, technologies and processes, and a focus on water resilience in key watersheds and positive impact on biodiversity through habitat conservation.

20In 2020, Dow set a target to be carbon neutral by 2050 across Scopes 1, 2 and 3, as defined by the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard, plus product benefits. Dow’s Protect the Climate goals include reducing net annual greenhouse gas ("GHG") emissions by 5 million metric tons by 2030 versus its 2020

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In 2020, Dow set a target to be carbon neutral by 2050 across Scopes 1, 2 and 3, as defined by the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard, plus product benefits. Dow’s Protect the Climate goals include reducing net annual greenhouse gas ("GHG") emissions by 5 million metric tons by 2030 versus its 2020 baseline, representing approximately a 15 percent reduction versus 2020 and a nearly 30 percent reduction since 2005. ~~In 2021,~~ Dow ~~outlined~~has a ~~path~~multi-generational plan to ~~decarbonize~~replace ~~its production processes (Scope 1 and 2 carbon dioxide equivalent ("CO2e") emissions), utilizing a phased approach in which~~ end-of-life ~~capacity~~emissions-intensive isassets ~~replaced~~ with higher-efficiency, lower-emissions ~~GHG emitting~~ assets. ~~In 2024,~~ Dow has continued its near-term progression in its Decarbonize & Grow strategy by starting construction of its Fort Saskatchewan Path2Zero project which will be the world’s first net-zero Scope 1 and 2 emissions ethylene complex, when completed, and will decarbonize approximately 20 percent of Dow’s global ethylene production capacity. While Dow remains committed to this project and the growth upside it will enable, Dow now expects to complete construction of the project with a two-year delay, with the first and second phases expected to start up by the end of 2029 and 2030, respectively. Dow has also continued to advance a project with X-energy, a nuclear energy innovation company, to commercialize an advanced small modular nuclear reactor that will generate GHG emissions-free process heat and energy at ~~UCC~~the Corporation's site in Seadrift, Texas. InEnergy ~~the near term, energy~~ reduction and optimization projects will provide continuous progress toward Dow’s carbon-neutral ambitions.

Dow is also committed to advancing water stewardship within its operations and supply chain and with downstream customers and to working collaboratively to enhance water management at the watershed level. In ~~addition to Dow's target to reduce freshwater intake intensity at six key water-stressed sites by 20 percent from its 2015 baseline by the end of 2025~~2024, Dow announced ~~in 2024~~ a robust ~~new~~ 2050 water resilience strategy as well as a 50,000 acre habitat conservation target to address these key elements of climate adaptation.

Despite these commitments, climate change-related risks and uncertainties, legal or regulatory responses to climate change, and failure to meet climate change commitments could negatively impact UCC’s results of operations, financial condition and/or reputation. Climate-related risks include both physical and transition risks.

Physical Risks

Climate-related physical risks include more frequent severe weather events, potential changes in precipitation patterns, water scarcity and extreme variability in weather patterns, which can disrupt the operations of Dow and the Corporation, as well as those of its customers, partners and vendors.

To evaluate physical risks, Dow partnered with S&P Global Trucost (“Trucost”) to assess Dow’s exposure to physical risks based on the geographic location of its manufacturing operations. The risks assessed included water stress, flood, heat waves, cold waves, hurricanes, wildfires and sea level rise. The analysis included an assessment of the physical risks using a baseline year of 2020 with time periods for medium- (year 2030) and long-term (year 2050) using the Intergovernmental Panel on Climate Change representative concentration pathways. These pathways represent varying degrees of global atmospheric ~~greenhouse~~GHG ~~gas~~ concentrations (low, medium and high), and thus different expectations on global temperature rise. Results ~~will~~are be incorporated into Dow’s long-term assessments of its manufacturing sites, which isare a key ~~input~~inputs into Dow’s and UCC's capital approval process.

Transition Risks

Climate-related transition risks include the availability, development and affordability of lower ~~greenhouse~~GHG ~~gas~~ emissions technology, the effects of carbon dioxide equivalent ("CO2e") pricing and changes in public sentiment, regulations, taxes, public mandates or requirements as they relate to CO2e, water or land use.

Climate-related risks, including both physical and transition risks, are assessed by Dow with input from internal and external sources including corporate, business, function and geographic leaders; subject matter experts; investors; and other stakeholders. The evaluation of climate-related risks and opportunities is integrated into Dow's annual company-wide risk management process, known as enterprise risk management (“ERM”). ERM identifies significant or major risks to Dow and develops action plans to modify or mitigate risks.

To ensure its processes and plans are resilient, Dow uses climate-related scenarios to assess physical and transition risks. Dow’s periodic climate scenario analysis considers a longer time frame (currently to 2050) for magnitude of impact. Every few years, Dow also utilizes a robust scenario analysis to assess the long-term materiality and impact of climate-related risks and opportunities. Scenario analysis is used to challenge business-as-usual assumptions and strengthen the resiliency of Dow’s Decarbonize & Grow strategy. Scenarios are used to evaluate both physical and transition risk and are particularly useful in evaluating the potential and impact of emerging risks. Dow selected several climate scenarios relevant for physical and transition risks, to cover a range of assumptions regarding policy development and to build resiliency for a variety of outcomes in its strategy.

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Managing Climate Risks

Management of climate risk is assigned to Dow’s Climate Steering Team (“CST”), which is accountable for developing and implementing plans to mitigate risk and for tracking actions and progress against those plans. With oversight and accountability by the CST, specific carbon-related risks are managed by Dow’s ~~Climate~~Carbon Program Management Office (“PMO”). ~~The~~Water and nature risks are managed by the Water and Nature PMO, ~~partners~~which is also accountable to the CST. The PMOs partner with subject matter experts to develop and implement strategies to mitigate or eliminate climate-related risks. The ~~team~~teams ~~develops~~develop specific action plans and ~~ensures~~ensure owners are assigned to drive forward progress ~~in order~~ to reduce Dow’s and UCC's risk exposure. Risk mitigation status updates are provided to Dow's executive leaders on a regular basis and discussions include risk time horizons ~~and/~~or magnitude of impact to confirm that the strategy remains solid.

Environmental Remediation

UCC accrues the costs of remediation of its facilities and formerly owned facilities based on current law and existing technologies. The nature of such remediation includes, for example, the management of soil and groundwater contamination. The policies adopted to properly reflect the monetary impacts of environmental matters are discussed in Note 1 to the Consolidated Financial Statements. To assess the impact on the consolidated financial statements, environmental experts review currently available facts to evaluate the probability and scope of potential liabilities. Inherent uncertainties exist in such evaluations primarily due to unknown environmental conditions, changing governmental regulations and legal standards regarding liability, and emerging remediation technologies. These liabilities are adjusted periodically as remediation efforts progress or as additional technical or legal information becomes available. The Corporation had an accrued liability of $149 million at December 31, ~~2024~~2025 and $~~157~~149 million at December 31, ~~2023~~2024, related to the remediation of current or former UCC-owned sites.

In addition to current and former UCC-owned sites, under the Federal Comprehensive Environmental Response, Compensation and Liability Act and equivalent state laws (hereafter referred to collectively as "Superfund Law"), UCC is liable for remediation of other hazardous waste sites where UCC allegedly disposed of, or arranged for the treatment or disposal of, hazardous substances. Because Superfund Law imposes joint and several liability upon each party at a site, UCC has evaluated its potential liability in light of the number of other companies that also have been named potentially responsible parties ("PRPs") at each site, the estimated apportionment of costs among all PRPs, and the financial ability and commitment of each to pay its expected share. Management's estimate of the Corporation's remaining liability for the remediation of Superfund sites was $35 39 million at December 31, ~~2024~~2025 and $37 35 million at December 31, ~~2023~~2024, which has been accrued, although the ultimate cost with respect to these sites could exceed that amount. The Corporation has not recorded any third-party recovery related to these sites as a receivable.

Information regarding environmental sites is provided below:

Environmental Sites	UCC-owned Sites 1		Superfund Sites 2
	2024	2023	2024	2023
	2025	2024	2025	2024
Number of sites at Jan 1	25	2625	6362	6163
Sites added during year	—	—	—3	3—
Sites closed during year	—(2)	~~(1)~~—	(14)	(1)
Number of sites at Dec 31	2523	25	6261	6362

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

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

In total, the Corporation's accrued liability for probable environmental remediation and restoration costs was $~~184~~188 million at December 31, ~~2024~~2025, compared with $~~194~~ 184 million at December 31, ~~2023~~2024. This is management's best estimate of the costs for remediation and restoration with respect to environmental matters for which the Corporation has accrued liabilities, although it is reasonably possible that the ultimate cost with respect to these particular matters could range up to approximately two times that amount. Consequently, it is reasonably possible that environmental remediation and restoration costs in excess of amounts accrued could have a material impact on the Corporation's results of operations, financial condition and cash flows. It is the opinion of the Corporation's management, however, that the possibility is remote that costs in excess of the range disclosed will have a material impact on the Corporation's results of operations, financial condition and cash flows.

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The amounts charged to income on a pretax basis related to environmental remediation totaled $3735 million in ~~2024~~2025, $4437 million in ~~2023~~2024 and $7244 million in ~~2022~~2023. The amounts charged to income on a pretax basis related to operating the Corporation's pollution abatement facilities, excluding internal recharges, totaled $2419 million in ~~2024~~2025, $~~106~~24 million in ~~2023~~2024 and $~~119~~106 million in ~~2022~~2023. The decrease in charges to operate pollution abatement facilities ~~was~~is primarily due to the ~~Infrastructure~~Corporation's ~~Divestment,~~divestment asof certain production supporting infrastructure assets on the ~~primary~~U.S. ~~pollution~~Gulf ~~abatement~~Coast ~~facilities~~that are now ~~operated~~owned byand ~~the~~managed ~~TDCC~~by Diamond Infrastructure ~~Subsidiary~~Solutions. See Note 17 for additional information. Capital expenditures for environmental protection were $1610 million in ~~2024~~2025, $4716 million in ~~2023~~2024 and $3847 million in ~~2022~~2023.

Asbestos-Related Matters

The Corporation is and has been involved in a large number of asbestos-related suits filed primarily in state courts during the past several decades. These suits principally allege personal injury resulting from exposure to asbestos-containing products and frequently seek both actual and punitive damages. The alleged claims primarily relate to products that UCC sold in the past, alleged exposure to asbestos-containing products located on UCC's premises, and UCC's responsibility for asbestos suits filed against a former UCC subsidiary, Amchem. In many cases, plaintiffs are unable to demonstrate that they have suffered any compensable loss as a result of such exposure, or that injuries incurred in fact resulted from exposure to UCC's products.

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

Asbestos-Related Claim Activity	~~2024~~2025	~~2023~~2024	~~2022~~2023
Claims unresolved at Jan 1	65,~~367~~813	6,~~873~~367	86,~~747~~873
Claims filed	4,~~568~~615	4,~~199~~568	4,~~664~~199
Claims settled, dismissed or otherwise resolved	(53,~~122~~270)	(45,~~705~~122)	(64,~~538~~705)
Claims unresolved at Dec 31	57,~~813~~158	65,~~367~~813	6,~~873~~367
Claimants with claims against both UCC and Amchem	(1,~~005~~277)	(1,~~236~~005)	(1,~~530~~236)
Individual claimants at Dec 31	45,~~808~~881	54,~~131~~808	5,~~343~~131

Plaintiffs' lawyers often sue numerous defendants in individual lawsuits or on behalf of numerous claimants. As a result, the damages alleged are not expressly identified as to UCC, Amchem or any other particular defendant, even when specific damages are alleged with respect to a specific disease or injury. For these reasons and based upon the Corporation's litigation and settlement experience, the Corporation does not consider the damages alleged against it and Amchem to be a meaningful factor in its determination of any potential asbestos-related liability.

For additional information, see Part I, Item 3. Legal Proceedings and Asbestos-Related Matters in Notes 1 and 12 to the Consolidated Financial Statements.

Debt Covenants and Default Provisions

The Corporation's outstanding public debt has been issued under indentures which contain, among other provisions, covenants that the Corporation must comply with while the underlying notes are outstanding. Such covenants are typically based on the Corporation's size and financial position and include, subject to the exceptions and qualifications contained in the indentures, obligations not to (i) allow liens on principal U.S. manufacturing facilities, (ii) enter into sale and lease-back transactions with respect to principal U.S. manufacturing facilities, or (iii) merge into or consolidate with any other entity or sell or convey all or substantially all of its assets. Failure of the Corporation to comply with any of these covenants could, after the passage of any applicable grace period, result in a default under the applicable indenture which would allow the note holders to accelerate the due date of the outstanding principal and accrued interest on the subject notes. Management believes the Corporation was in compliance with the covenants referred to above at December 31, ~~2024~~2025.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

UCC’s business operations give rise to market risk exposure due to changes in foreign exchange rates, interest rates, commodity prices and other market factors such as equity prices. To manage such risks effectively, the Corporation enters into hedging transactions, pursuant to established guidelines and policies that enable it to mitigate the adverse effects of financial market risk. Derivatives used for this purpose are designated as hedges per the accounting guidance related to derivatives and hedging activities, where appropriate.

The global nature of UCC’s business requires active participation in the foreign exchange markets. As a result of investments, production facilities and other operations on a global basis, the Corporation has assets, liabilities and cash flows in currencies other than the U.S. dollar. The primary objective of the Corporation’s foreign exchange risk management is to optimize the U.S. dollar value of net assets and cash flows. To achieve this objective, the Corporation hedges on a net exposure basis using foreign currency forward contracts, over-the-counter option contracts, cross-currency swaps and nonderivative instruments in foreign currencies. Exposures primarily relate to assets, liabilities and cash flows denominated in foreign currencies. The largest exposures are denominated in the Canadian dollar as well as the currencies of Europe and Asia Pacific.

The main objective of interest rate risk management is to reduce the total funding cost to the Corporation and to alter the interest rate exposure to the desired risk profile. To achieve this objective, the Corporation hedges using interest rate swaps, “swaptions,” and exchange-traded instruments. The Corporation’s primary exposure is to the U.S. dollar yield curve.

UCC uses value-at-risk ("VAR"), stress testing and scenario analysis for risk measurement and control purposes. VAR estimates the maximum potential loss in fair market values given a certain move in prices over a certain period of time, using specified confidence levels. The VAR methodology used by the Corporation is a variance/covariance model. This model uses a 97.5 percent confidence level and includes at least one year of historical data. The ~~2024~~2025 and ~~2023~~2024 year-end and average daily VAR for the aggregate of all positions are shown below:

Total Daily VAR at Dec 31	~~2024~~2025				~~2023~~2024
In millions	Year-end		Average		Year-end		Average
Interest rate	$	2	$	32	$	32	$	43

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholder and the Board of Directors of Union Carbide Corporation

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Union Carbide Corporation and subsidiaries (the "Corporation") as of December 31, ~~2024~~2025 and ~~2023~~2024, the related consolidated statements of income, comprehensive income, equity, and cash flows, for each of the three years in the period ended December 31, ~~2024~~2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Corporation as of December 31, ~~2024~~2025 and ~~2023~~2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, ~~2024~~2025, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Corporation's management. Our responsibility is to express an opinion on the Corporation's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Corporation in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Corporation is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Corporation’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.

Asbestos - Refer to Notes 1 and 12 to the Financial Statements

Critical Audit Matter Description

The Corporation is and has been involved in a large number of asbestos-related suits filed primarily in state courts during the past several decades. The Corporation expects more asbestos-related suits to be filed against the Corporation and its former subsidiary Amchem Products, Inc. in the future, and will aggressively defend or reasonably resolve, as appropriate, both pending and future claims. Since 2003, the Corporation has engaged a third-party actuarial specialist to review the Corporation's historical asbestos-related claim and resolution activity in order to assist management in estimating the Corporation's asbestos-related liability. The Corporation considers ~~quantitative and qualitative factors such as the nature of pending claims, trial experience of the Corporation and~~

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quantitative and qualitative factors such as the nature of pending claims, trial experience of the Corporation and other asbestos defendants, current spending for defense and processing costs, significant appellate rulings and legislative developments, trends in the tort system, and their respective effects on expected future resolution costs.

The Corporation considers the following summarized assumptions and judgments in arriving at the estimated liability:

•The average resolution value calculated by the Corporation to settle each pending and future claim

•The Corporation’s estimation of the number of pending and future claims

•The curve of how claims will occur over the estimated period through the terminal year

•The estimated terminal year 2049 (date at which future claims will cease)

•The acceptance rate applied to estimated future claims (the rate at which claims will be resolved with payment)

Given the significant judgments made by management to estimate the asbestos liability, performing audit procedures to evaluate the reasonableness of management’s estimates and assumptions related to average resolution value of pending and future claims, estimated number of pending and future claims, curve of how claims will occur, estimated terminal date, and acceptance rate applied to estimated future claims required a high degree of auditor judgment and an increased extent of effort, including the need to involve our actuarial specialists.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to management’s estimate and assumptions of the asbestos liability included the following, among other procedures:

•We tested the effectiveness of controls related to the asbestos liability including management’s controls over the determination of average resolution value of pending and future claims, estimated number of pending and future claims, valuation of future claims, curve of how claims will occur, the estimated terminal date and the acceptance rate applied to estimated future claims.

•We evaluated the methods and assumptions used by management to estimate the asbestos liability by:

◦Testing the underlying data that served as the basis for the actuarial analysis, including historical claims, to test that the inputs to the actuarial estimate were reasonable.

◦Comparing management’s prior-year assumptions of expected development and ultimate loss to actuals incurred during the current year to identify potential bias in the determination of the asbestos-related liabilities.

•With the assistance of our actuarial specialists, we performed testing to develop an independent estimate of the asbestos-related liabilities and compared our estimate to management’s estimate.

•We read external information included in regulatory filings and news releases to search for contradictory evidence.

/s/ DELOITTE & TOUCHE LLP Midland, Michigan February 43, ~~2025~~2026

We have served as the Corporation's auditor since 2001.

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Union Carbide Corporation and Subsidiaries

Consolidated Statements of Income

(In millions) For the years ended Dec 31,	~~2024~~2025		~~2023~~2024		~~2022~~2023
Net trade sales	$	~~120~~104	$	~~147~~120	$	~~191~~147
Net sales to related companies	43,~~157~~885		4,~~149~~157		54,~~258~~149
Total net sales	43,~~277~~989		4,~~296~~277		54,~~449~~296
Cost of sales	34,~~968~~111		3,~~804~~968		43,~~586~~804
Research and development expenses	2220		22		2622
Selling, general and administrative expenses	6		106		10
Restructuring and asset related charges - net	—6		14—		—14
Sundry income (expense) - net	~~(110)~~579		(25110)		(5325)
Interest income	~~134~~100		49134		1849
Interest expense and amortization of debt discount	87		168		2616
Income before income taxes	~~297~~518		~~454~~297		~~766~~454
Provision for income taxes	47		73		172
Provision (credit) for income taxes	(42)		47		73
Net income attributable to Union Carbide Corporation	$	~~250~~560	$	~~381~~250	$	~~594~~381

See Notes to the Consolidated Financial Statements.

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Consolidated Statements of Comprehensive Income

(In millions) For the years ended Dec 31,	~~2024~~2025		~~2023~~2024		~~2022~~2023
Net income attributable to Union Carbide Corporation	$	~~250~~560	$	~~381~~250	$	~~594~~381
Other comprehensive income (loss), net of tax
Cumulative translation adjustments	1(3)		1		(1)
Pension and other postretirement benefit plans	~~(2)~~36		58(2)		~~150~~58
Total other comprehensive income (loss)	~~(1)~~33		59(1)		~~149~~59
Comprehensive income attributable to Union Carbide Corporation	$	~~249~~593	$	~~440~~249	$	~~743~~440

See Notes to the Consolidated Financial Statements.

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Consolidated Balance Sheets

(In millions, except share amounts) At Dec 31,	~~2024~~2025		~~2023~~2024
Assets
Current Assets
Cash and cash equivalents	$	11	$	11
Accounts receivable:
Trade (net of allowance for doubtful receivables 2024: $—; 2023: $—)	16		16
Trade (net of allowance for doubtful receivables 2025: $—; 2024: $—)	17		16
Related companies	~~846~~684		~~700~~846
Other	18		1418
Income taxes receivable	42—		~~238~~42
Notes receivable from related companies	~~593~~7		~~799~~593
Inventories	~~296~~278		~~227~~296
Other current assets	3145		3631
Total current assets	1,~~853~~060		21,~~041~~853
Investments
Investments in related companies	237		237
Other investments	1213		1512
Noncurrent receivables	3113		9931
Noncurrent receivables from related companies	1,~~642~~724		1,~~598~~642
Total investments	1,~~922~~987		1,~~949~~922
Property
Property	5,~~732~~858		5,~~406~~732
Less accumulated depreciation	4,~~611~~747		4,~~512~~611
Net property	1,~~121~~111		~~894~~1,121
Other Assets
Intangible assets (net of accumulated amortization 2024: $95; 2023: $93)	6		7
Intangible assets (net of accumulated amortization 2025: $96; 2024: $95)	5		6
Operating lease right-of-use assets	6156		8561
Deferred income tax assets	~~253~~289		~~257~~253
Deferred charges and other assets	1716		3917
Total other assets	~~337~~366		~~388~~337
Total Assets	$	54,~~233~~524	$	5,~~272~~233
Liabilities and Equity
Current Liabilities
Notes payable to related companies	$	19118	$	6819
Notes payable - other	—		1
Long-term debt due within one year	2		126
Long-term debt due within one year	126		1
Accounts payable:
Trade	~~336~~220		~~286~~336
Related companies	~~470~~445		~~420~~470
Other	3017		1230
Operating lease liabilities - current	12		1712
Income taxes payable	2120		3021
Asbestos-related liabilities - current	7880		8078
Accrued and other current liabilities	~~136~~120		~~116~~136
Total current liabilities	1,~~228~~034		1,~~031~~228
Long-Term Debt	143		~~259~~143
Other Noncurrent Liabilities
Pension and other postretirement benefits - noncurrent	~~402~~413		~~395~~402
Asbestos-related liabilities - noncurrent	~~713~~628		~~787~~713
Operating lease liabilities - noncurrent	4944		6849
Other noncurrent obligations	~~512~~246		~~567~~512
Total other noncurrent liabilities	1,~~676~~331		1,~~817~~676
Stockholders' Equity
Common stock (authorized: 1,000 shares of $0.01 par value each; issued: 935.51 shares)	—		—
Additional paid-in capital	1,034		1,034
Retained earnings	2,~~496~~293		2,~~474~~496
Accumulated other comprehensive loss	(1,~~344~~311)		(1,~~343~~344)
Union Carbide Corporation's stockholders' equity	2,~~186~~016		2,~~165~~186
Total Liabilities and Equity	$	54,~~233~~524	$	5,~~272~~233

See Notes to the Consolidated Financial Statements.

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Consolidated Statements of Cash Flows

(In millions) For the years ended Dec 31,	~~2024~~2025		~~2023~~2024		~~2022~~2023
Operating Activities
Net income attributable to Union Carbide Corporation	$	~~250~~560	$	~~381~~250	$	~~594~~381
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	~~144~~182		~~170~~144		~~199~~170
Provision (credit) for deferred income tax	4(47)		~~(18)~~4		5(18)
Net gain on sales of property and investments	~~(1)~~—		(1)		(31)
Net gain on sale of ownership interest in related party	(2)		(206)		—
Distribution from related company	(735)		—		—
Restructuring and asset related charges - net	—		14		—
Net gain on sale of ownership interest in related party	—		(2)		(206)
Net periodic pension benefit cost	27		184		9
Restructuring and asset related charges - net	6		—		14
Pension contributions	(2)		(2)		(3)
Net periodic pension benefit cost	75		27		184
Pension contributions	(2)		(2)		(2)
Other, net	1		—		—
Changes in assets and liabilities:
Accounts and notes receivable	(41)		31(4)		1431
Related company receivables	~~118~~690		~~225~~118		~~658~~225
Inventories	~~(69)~~18		22(69)		~~(6)~~22
Accounts payable	68(129)		468		~~(89)~~4
Related company payables	174		261		~~(190)~~26
Asbestos-related payments	(7683)		(8076)		(6980)
Other assets and liabilities	~~108~~(377)		~~(52)~~108		75(52)
Cash provided by operating activities	~~566~~232		~~698~~566		~~1,194~~698
Investing Activities
Capital expenditures	(~~338~~137)		(~~274~~338)		(~~143~~274)
Proceeds from sale of ownership interest in related party	2—		~~206~~2		—206
Change in noncurrent receivable from related company	~~(3)~~58		6(3)		76
Proceeds from sales of property and investments	41		124		312
Cash used for investing activities	(~~335~~78)		(50335)		(~~133~~50)
Financing Activities
Dividends paid to parent	(~~228~~28)		(~~512~~228)		(~~1,063~~512)
Changes in short-term notes payable	~~(1)~~—		(31)		4(3)
Payments on long-term debt	(2126)		(~~132~~2)		(3132)
Cash used for financing activities	(~~231~~154)		(~~647~~231)		(~~1,062~~647)
Summary
Increase (decrease) in cash and cash equivalents	—		1		(1)
Change in cash and cash equivalents	—		—		1
Cash and cash equivalents at beginning of year	11		1011		1110
Cash and cash equivalents at end of year	$	11	$	11	$	1011

See Notes to the Consolidated Financial Statements.

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Consolidated Statements of Equity

(In millions) For the years ended Dec 31,	~~2024~~2025		~~2023~~2024		~~2022~~2023
Common Stock
Balance at beginning and end of period	$	—	$	—	$	—
Balance at beginning and end of year	$	—	$	—	$	—
Additional Paid-in Capital
Balance at beginning and end of period	1,034		141		141
Balance at beginning of year	1,034		1,034		141
Common control transaction (Note 17)	—		~~893~~—		—893
Balance at end of period	1,034		1,034		141
Balance at end of year	1,034		1,034		1,034
Retained Earnings
Balance at beginning of period	2,474		2,605		3,074
Balance at beginning of year	2,496		2,474		2,605
Net income attributable to Union Carbide Corporation	~~250~~560		~~381~~250		~~594~~381
Dividends declared	(228)		(512)		(1,063)
Distribution to parent	(735)		—		—
Balance at end of period	2,496		2,474		2,605
Dividends declared	(28)		(228)		(512)
Balance at end of year	2,293		2,496		2,474
Accumulated Other Comprehensive Loss, Net of Tax
Balance at beginning of period	(1,343)		(1,402)		(1,551)
Balance at beginning of year	(1,344)		(1,343)		(1,402)
Other comprehensive income (loss)	~~(1)~~33		59(1)		~~149~~59
Balance at end of period	(1,344)		(1,343)		(1,402)
Balance at end of year	(1,311)		(1,344)		(1,343)
Union Carbide Corporation's Stockholder's Equity	$	2,~~186~~016	$	2,~~165~~186	$	12,~~344~~165

See Notes to the Consolidated Financial Statements.

3132

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Union Carbide Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

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Note		Page
1	Summary of Significant Accounting Policies	3233
2	Recent Accounting Guidance	3536
3	Revenue	3637
4	Restructuring and Asset Related Charges - Net	3738
5	Supplementary Information	3738
6	Income Taxes	3940
7	Inventories	4142
8	Property	4143
9	Investments in Related Companies	4143
10	Intangible Assets	4243
11	Notes Payable and Long-Term Debt	4344
12	Commitments and Contingencies	4445
13	Leases	4647
14	Accumulated Other Comprehensive Loss	4849
15	Pension Plans and Other Postretirement Benefits	4850
16	Fair Value Measurements	5556
17	Related Party Transactions	5657
18	Business and Geographic Regions	5860

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation and Basis of Presentation

Except as otherwise indicated by the context, the terms "Corporation" and "UCC" as used herein mean Union Carbide Corporation and its consolidated subsidiaries. and references to "TDCC" refer to The ~~accompanying~~Dow ~~consolidated~~Chemical ~~financial~~Company ~~statements~~and ofits ~~the~~consolidated ~~Corporation~~subsidiaries. ~~were~~UCC ~~prepared~~is ina ~~accordance~~wholly ~~with~~owned ~~accounting~~subsidiary ~~principles~~of ~~generally~~TDCC ~~accepted~~and inTDCC ~~the~~is ~~United~~a ~~States~~wholly owned subsidiary of ~~America~~Dow ~~("U~~Inc.S. ~~GAAP~~Additionally, the term ")Diamond ~~and~~Infrastructure ~~include~~Solutions" ~~the~~means ~~assets~~Dow InfraCo, ~~liabilities~~LLC, ~~revenues~~TDCC's ~~and~~consolidated ~~expenses~~variable ofinterest ~~all~~entity ~~majority-owned~~that ~~subsidiaries~~owns ~~over~~and ~~which~~operates ~~the~~infrastructure ~~Corporation~~assets ~~exercises~~at ~~control~~certain TDCC and, ~~when~~UCC ~~applicable,~~locations ~~entities~~on ~~for~~the U.S. Gulf Coast, which include the Corporation's ~~has~~sites ain ~~controlling financial interest~~St. ~~Investments~~Charles, inLouisiana, ~~nonconsolidated~~and ~~affiliates~~Seadrift ~~(20-50 percent~~and ~~owned~~Texas ~~companies~~City, ~~joint~~Texas. ~~ventures~~Infrastructure-related products and ~~partnerships)~~services provided to the Corporation by Diamond Infrastructure Solutions are ~~accounted~~billed ~~for~~to ~~using~~the Corporation in accordance with the ~~equity~~terms ~~method~~of agreements between the parties.

The accompanying consolidated financial statements of the Corporation iswere aprepared ~~wholly~~in ~~owned~~accordance ~~subsidiary~~with ofaccounting ~~The~~principles ~~Dow~~generally ~~Chemical~~accepted ~~Company~~in the United States of America ("~~TDCC~~U.S. GAAP") and include the assets, liabilities, revenues and expenses of all majority-owned subsidiaries over which the Corporation exercises control and, when applicable, entities for which the Corporation has a controlling financial interest. Investments in nonconsolidated affiliates (20-50 percent owned companies, joint ventures and partnerships) are accounted for using the equity method. In accordance with the accounting guidance for earnings per share, the presentation of earnings per share is not required in financial statements of wholly owned subsidiaries.

TDCC conducts its worldwide operations through global businesses and the Corporation's business activities comprise components of TDCC's global businesses rather than stand-alone operations. Further, the Corporation sells substantially all of its products to TDCC in order to simplify the customer interface process. The Corporation's Board of Directors ("Board"), acting pursuant to the authority delegated to it by TDCC, functions as the Corporation's chief operating decision maker ("CODM") to assess UCC's results and allocate resources for its operations. The Corporation's results are reported as a single operating segment as the consolidated statements of income are presented to the CODM without further disaggregation.

Intercompany transactions and balances are eliminated in consolidation. Transactions with the Corporation’s parent company, TDCC, and other subsidiaries of TDCC, have been reflected as related company transactions in the consolidated financial statements. See Note 17 for additional information.33

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Intercompany transactions and balances are eliminated in consolidation. Transactions with TDCC and other subsidiaries of TDCC, including Diamond Infrastructure Solutions, have been reflected as related company transactions in the consolidated financial statements. See Note 17 for additional information.

Use of Estimates in Financial Statement Preparation

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

Significant Accounting Policies

Asbestos-Related Matters

Accruals for asbestos-related matters, including defense and processing costs, are recorded based on an analysis of claim and resolution activity, defense spending, and pending and future claims. These accruals are assessed at each balance sheet date to determine if the asbestos-related liability remains appropriate. Accruals for asbestos-related matters are included in the consolidated balance sheets in "Asbestos-related liabilities - current" and "Asbestos-related liabilities - noncurrent." See Note 12 for additional information.

Legal Costs

The Corporation expenses legal costs as incurred, with the exception of defense and processing costs associated with asbestos-related matters.

Foreign Currency Translation

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

Environmental Matters

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

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

Cash and Cash Equivalents

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

Financial Instruments

The Corporation calculates the fair value of financial instruments using quoted market prices when available. When quoted market prices are not available for financial instruments, the Corporation uses standard pricing models with market-based inputs that take into account the present value of estimated future cash flows.

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Inventories

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

33The Corporation routinely utilizes exchange, swap and tolling arrangements with other companies for raw materials and finished goods to increase sourcing options, shorten delivery times, and reduce freight and other transportation costs. These transactions are treated as nonmonetary exchanges and are valued at cost.

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The Corporation routinely utilizes exchange, swap and tolling arrangements with other companies for raw materials and finished goods to increase sourcing options, shorten delivery times, and reduce freight and other transportation costs. These transactions are treated as non-monetary exchanges and are valued at cost.

Property

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

Impairment and Disposal of Long-Lived Assets

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

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

Intangible Assets

Finite-lived intangible assets, such as developed technology and software, are amortized over their estimated useful lives, generally on a straight-line basis for periods ranging primarily from 3 to 20 years.

Investments in Related Companies

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

Leases

The Corporation determines whether a contract contains a lease at contract inception. A contract contains a lease if there is an identified asset and the Corporation has the right to control the asset. Operating lease right-of-use (“ROU”) assets represent UCC’s right to use an underlying asset for the lease term, and lease liabilities represent UCC’s obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Corporation uses the incremental borrowing rate in determining the present value of lease payments, unless the implicit rate is readily determinable. If lease terms include options to extend or terminate the lease, the ROU asset and lease liability are measured based on the reasonably certain decision. Leases with a term of 12 months or less at the commencement date are not recognized on the balance sheet and are expensed as incurred.

The Corporation has lease agreements with lease and non-lease components, which are accounted for as a single lease component for nearly all classes of leased assets for which UCC is the lessee. Additionally, for certain equipment leases, the portfolio approach is applied to account for the operating lease ROU assets and lease liabilities. In the consolidated statements of income, lease expense for operating lease payments is recognized on a straight-line basis over the lease term. For finance leases, interest expense is recognized on the lease liability and the ROU asset is amortized over the lease term.

Some leasing arrangements require variable payments that are dependent upon usage or output, or may vary for other reasons, such as insurance or tax payments. Variable lease payments are recognized as incurred and are not presented as part of the ROU asset or lease liability. See Note 13 for additional information.35

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Revenue

Substantially all of the Corporation's revenues are generated by sales to TDCC. Revenue for product sales to related companies is recognized when the related company obtains control of the product, which occurs either at the time that production is complete or shipped free on board ("FOB") from UCC's manufacturing facility, in accordance with the sales agreement between the Corporation and TDCC. The Corporation recognizes revenue for product sales to trade customers when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Corporation expects to receive in exchange for those goods or services. To determine revenue recognition, the Corporation performs the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. See Note 3 for additional information.

Severance Costs

Management routinely reviews its operations around the world in an effort to ensure competitiveness across its operations and geographic regions. When the reviews result in a workforce reduction related to the shutdown of facilities or other optimization activities, severance benefits are provided to employees primarily under ongoing benefit arrangements. These severance costs are accrued once management commits to a plan of termination and it becomes probable that employees will be entitled to benefits at amounts that can be reasonably estimated.

Income Taxes

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

The Corporation recognizes the financial statement effects of an uncertain income tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. The Corporation accrues for ~~non-income~~other tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated.

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

NOTE 2 - RECENT ACCOUNTING GUIDANCE

Recently Adopted Accounting Guidance

In the fourth quarter of ~~2024~~2025, the Corporation prospectively adopted the annual ~~and interim~~ disclosure requirements of Accounting Standards Update ("ASU") 2023-0709, "~~Segment~~Income ~~Reporting~~Taxes (Topic ~~280~~740): Improvements to ~~Reportable~~Income ~~Segment~~Tax Disclosures." The amendments ~~expand~~in this ASU require a public business entity's ~~segment~~to ~~disclosures~~disclose bya ~~requiring~~tabular ~~disclosure~~tax ofrate ~~significant~~reconciliation, ~~segment~~using ~~expenses~~both ~~that~~percentages ~~are~~and ~~regularly~~currency, ~~provided~~with specific categories. A public business entity is also required to provide a qualitative description of the ~~CODM,~~states ~~clarifying~~and ~~when~~local anjurisdictions ~~entity~~that ~~may~~make ~~report~~up ~~one~~the ormajority ~~more~~of ~~additional~~the ~~measures~~effect toof ~~assess~~the ~~segment~~state ~~performance,~~and ~~requiring~~local ~~enhanced~~income ~~interim~~tax ~~disclosures,~~category ~~providing~~and ~~new~~the ~~disclosure~~net ~~requirements~~amount ~~for~~of ~~entities~~income ~~with~~taxes apaid, ~~single~~disaggregated ~~reportable~~by ~~segment~~federal, state and ~~requiring~~foreign ~~other~~taxes ~~new~~and also disaggregated by individual jurisdictions. The amendments also remove certain disclosures that are no longer considered cost beneficial. See ~~Note~~Notes 185 and 6 for applicable ~~reportable~~income ~~segment~~tax-related disclosures required by this guidance.

~~Accounting Guidance Issued But Not Adopted at December 31, 2024~~36

In December 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures," which is intended to enhance the transparency, decision usefulness and effectiveness of income tax disclosures. The amendments in this ASU require a public business entity to disclose a tabular tax rate reconciliation, using both percentages and currency, with specific categories. A public business entity is also required to provide a qualitative description of the states and local jurisdictions that make up the majority of the effect of the state and local income tax category and the net amount of income taxes paid, disaggregated by federal, state and foreign taxes and also disaggregated by individual jurisdictions. The

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~~amendments~~Accounting ~~also~~Guidance ~~remove~~Issued ~~certain~~But ~~disclosures~~Not ~~that~~Adopted ~~are~~at ~~no longer considered cost beneficial. The amendments are effective prospectively for annual periods beginning after~~ December 1531, ~~2024, and early adoption and retrospective application are permitted. The adoption of the ASU is not expected to have a material impact on the Corporation's consolidated financial statements.~~2025

In November 2024, the ~~FASB~~Financial Accounting Standards Board issued ASU 2024-03, "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses," which is intended to improve disclosures about a public business entity's expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions. Such information should allow investors to better understand an entity's performance, assess future cash flows, and compare performance over time and with other entities. The amendments will require public business entities to disclose in the notes to the financial statements, at each interim and annual reporting period, specific information about certain costs and expenses, including purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each expense caption presented on the face of the income statement, and the total amount of an entity's selling expenses. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, and may be applied either prospectively or retrospectively. Early adoption is permitted. ~~The~~While ~~Corporation~~the isadoption ~~currently~~of ~~evaluating~~ASU 2024-03 will result in enhanced disclosures, the ~~impact~~Corporation ofdoes ~~adopting~~not ~~this~~expect ~~guidance~~it onwill ~~the~~have ~~consolidated~~a material impact on its financial ~~statements~~condition or results of operations.

SEC Final Rules Not Adopted at December 31, 2024

In March 2024, the U.S. Securities and Exchange Commission ("SEC") adopted final rules under SEC Release Nos. 33-11275 and 34-99678, "The Enhancement and Standardization of Climate-Related Disclosures for Investors," which requires registrants to disclose certain climate-related information in registration statements and annual reports. The final rules include requirements to disclose material climate-related risks; activities to mitigate or adapt to such risks; information about the board of directors' oversight of climate-related risks and management’s role in managing material climate-related risks; and information on any climate-related targets or goals that are material to the registrant's business, results of operations, or financial condition. Registrants are also required to disclose the financial statement effects of severe weather events and other natural conditions in the notes to the financial statements. Certain large registrants are also required to disclose Scope 1 and Scope 2 greenhouse gas emissions, when material. As a non-accelerated filer, the Corporation is not required to disclose such greenhouse gas emissions information. The final rules include a phased-in compliance period for all registrants, with most disclosures required for the Corporation for the year ending December 31, 2027. In April 2024, the SEC issued an order to stay the final rules until various legal challenges are resolved by the U.S. Court of Appeals for the Eighth Circuit. The Corporation is currently evaluating the impact of the final rules on its consolidated financial statements and annual disclosures.

NOTE 3 - REVENUE

Substantially all of the Corporation's revenue is generated by sales of products, primarily to TDCC. Products are sold to and purchased from TDCC at prices determined in accordance with the terms of an agreement between UCC and TDCC. The Corporation sells its products to TDCC to simplify the customer interface process.

Substantially all product sale contracts are short-term in nature and have original expected durations of one year or less. Revenue from product sales is recognized when TDCC or the trade customer obtains control of the Corporation’s product, which occurs at a point in time, typically at the time production is complete or product is shipped FOB from UCC’s manufacturing facility for sales to TDCC, or upon shipment for sales to trade customers. The Corporation’s payment terms are on average 30 to 60 days after invoicing. All shipping and handling activities that occur after control transfers to the customer are considered fulfillment activities. Certain long-term contracts include a series of distinct goods that are delivered continuously to the customer through a pipeline. For these types of product sales, the Corporation invoices the customer in an amount that directly corresponds with the value to the customer of the Corporation’s performance to date. As a result, revenue is recognized based on the amount billable to the customer in accordance with the right to invoice practical expedient.

The transaction price for product sales includes estimates for the most likely amount of consideration to which the Corporation will be entitled based on historical award experience and the Corporation’s best judgment at the time. Taxes collected and remitted to governmental authorities are excluded from the transaction price. For contracts with multiple performance obligations, the Corporation allocates the transaction price to each performance obligation on the basis of relative standalone selling price, which is based on the price charged to customers or estimated using the expected cost plus margin method.

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the basis of relative standalone selling price, which is based on the price charged to customers or estimated using the expected cost plus margin method.

Revenue related to the initial licensing of patents and technology is recognized when the performance obligation is satisfied. Revenue related to sales-based royalties to which the Corporation expects to be entitled is estimated based on historical sales.

The Corporation’s contract liabilities include payments received in advance of performance under long-term contracts for product sales and royalties with remaining contract terms that range up to 1615 years. Amounts are recognized in revenue when the performance obligations for the contract are met. The Corporation has rights to additional consideration when product is delivered to the customer. The balance of contract liabilities was $2927 million at December 31, ~~2024~~2025 ($3129 million at December 31, ~~2023~~2024), of which $2 million ($2 million at December 31, ~~2023~~2024) was included in "Accrued and other current liabilities" and $2725 million ($2927 million at December 31, ~~2023~~2024) was included in "Other noncurrent obligations" in the consolidated balance sheets.

The Corporation disaggregates its revenue from contracts with customers by type of customer (sales to related parties and sales to trade customers) as presented on the consolidated statements of income and believes this disaggregation best depicts the nature, amount, timing and uncertainty of its revenue and cash flows. Substantially all of the product sales are made to the Corporation's parent company, TDCC, and there are no unique economic factors that affect revenue recognition and cash flows associated with these product sales.

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NOTE 4 - RESTRUCTURING AND ASSET RELATED CHARGES - NET

2025 Restructuring Program

In the first quarter of 2025, the Corporation initiated targeted actions to further achieve its cost reduction initiatives in response to ongoing macroeconomic weakness, while reinforcing long-term competitiveness across the economic cycle. These actions were substantially complete at the end of 2025. As a result of these actions, the Corporation recorded pretax restructuring charges of $6 million for severance and related benefit costs, included in "Restructuring and asset related charges - net" in the consolidated statements of income. The Corporation paid $4 million for severance and related benefit costs related to this program through December 31, 2025.

At December 31, 2025, a liability for severance and related benefit costs of $2 million was included in "Accrued and other current liabilities" in the consolidated balance sheets.

2023 Restructuring Program

In the first quarter of 2023, the Corporation initiated restructuring actions to achieve its structural cost improvement initiatives in response to the continued economic impact from the global recessionary environment and to enhance its agility and long-term competitiveness across the economic cycle. The program ~~includes~~included workforce cost reductions and actions to rationalize the Corporation's manufacturing assets, which ~~includes~~included asset write-down and write-off charges. These actions were ~~substantially~~ complete at the end of ~~2024~~the second quarter of 2025. As a result of these actions, the Corporation recorded pretax restructuring charges of $14 million, included in "Restructuring and asset related charges - net" in the consolidated statements of income. The charges consisted of severance and related benefit costs of $12 million and asset write-downs and write-offs of $2 million. The Corporation paid $1112 million for severance and related benefit costs related to this program through December 31, ~~2024~~2025.

At December 31, 2024, a liability for severance and related benefit costs of $1 million ($2 million at December 31, 2023) was included in "Accrued and other current liabilities" in the consolidated balance sheets.

NOTE 5 - SUPPLEMENTARY INFORMATION

Sundry Income (Expense) - Net
In millions	~~2024~~2025		~~2023~~2024		~~2022~~2023
General administrative and overhead type services and service fees 1	$	(69)	$	(7269)	$	(6572)
Net commission expense - related company 1	(20)		(19)		(19)
Distribution and dividend income - related companies 1	739		—		—
Non-operating pension and other postretirement benefit plan net credits (costs) 2	(22)		(144)		34
Net commission expense - related company 1	(19)		(20)		(19)
Gain on sale of ownership interest in related party 3	2		206		—
Non-operating pension and other postretirement benefit plan costs 2	(69)		(22)		(144)
Net gain on sales of property	1		1		3
Gain on sale of ownership interest in related party 3	—		2		206
Equity in earnings of nonconsolidated affiliate 1	—		10		—
Net gain on sales of property	—		1		1
Other - net	(2)		(7)		(6)
Equity in earnings of nonconsolidated affiliate 1	—		—		10
Total sundry income (expense) - net	$	(110)	$	(25)	$	(53)
Other - net	(3)		(2)		(7)
Total sundry income (expense) - net	$	579	$	(110)	$	(25)

1.See Note 17 for additional information.

2.The 2025 expense includes pretax pension settlement charges of $37 million related to the termination of certain U.S. tax-qualified pension plans. The 2023 expense includes pretax pension settlement charges of $149 million related to the transfer of certain plan obligations to an insurance company. See Note 15 for additional information about the Corporation's pension and other postretirement benefit plans, including pension settlement charges.

3.These amounts relate to the sale of the Corporation's ownership interest in Dow Technology Investments LLC. See Note 17 for additional information.

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Supplier Finance Program

The Corporation is a party to a supply chain financing (“SCF”) program, facilitated by TDCC, which can be used in the ordinary course of business to extend payment terms with the Corporation's vendors. Under the terms of this program, a vendor can voluntarily enter into an agreement with a participating financial intermediary to sell its receivables due from the Corporation. The vendor receives payment from the financial intermediary, and the Corporation pays the financial intermediary on the terms originally negotiated with the vendor, which generally range from 90 to 120 days. The vendor negotiates the terms of the agreements directly with the financial intermediary and the Corporation is not a party to that agreement. The financial intermediary may allow the participating vendor to utilize TDCC's creditworthiness in establishing credit spreads and associated costs, which may provide the vendor with more favorable terms than they would be able to secure on their own. Neither TDCC nor the Corporation provide guarantees related to the SCF program. At December 31, ~~2024~~2025, the Corporation's outstanding obligations confirmed as valid under the SCF program were $3627 million ($2736 million at December 31, ~~2023~~2024), included in “Accounts payable – Trade” in the consolidated balance sheets.

~~The following table summarizes the activity of the SCF program for the years ended December 31, 2024 and 2023:~~38

Supplier Finance Program Activity
In millions	2024		2023
Confirmed obligations outstanding at Jan 1	$	27	$	29
Invoices confirmed to financial intermediary	117		102
Confirmed invoices paid to financial intermediary	(108)		(104)
Confirmed obligations outstanding at Dec 31	$	36	$	27

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The following table summarizes the activity of the SCF program for the years ended December 31, 2025 and 2024:


Supplier Finance Program Activity
In millions	2025		2024
Confirmed obligations outstanding at Jan 1	$	36	$	27
Invoices confirmed to financial intermediary	123		117
Confirmed invoices paid to financial intermediary	(132)		(108)
Confirmed obligations outstanding at Dec 31	$	27	$	36

Supplemental Cash Flow Information

~~The~~Required ~~following~~supplementary ~~table shows~~ cash ~~paid~~flow ~~(refunded)~~information ~~for~~is ~~interest~~presented ~~and~~in ~~income taxes for~~ the ~~years~~following ~~ended December 31, 2024, 2023 and 2022~~tables:

Supplemental Cash Flow Information	~~2024~~2025		~~2023~~2024		~~2022~~2023
In millions
Cash paid (refunded) during year for:
Interest	$	21	$	26	$	31
Income taxes 1	$	(211)	$	102	$	63
Noncash investing activities:
Capitalized interest - related company term loan 1	$	9982	$	—99	$	—
Cash paid (received) for:
Interest	$	17	$	21	$	26
Income taxes, net of refunds 1	$	231	$	(211)	$	102

1.See Note 17 for additional information.


Supplemental Cash Flow Information - Cash Paid for Income Taxes - Disaggregated 1	2025
In millions



Cash paid (received) for income taxes, net of refunds
Federal	$	223
State and local

Other state and local jurisdictions	$	(1)

Foreign

Other foreign jurisdictions	$	9

Total cash paid for income taxes, net of refunds	$	231

1.Disaggregated in accordance with ASU 2023-09, which was adopted prospectively in 2025.

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NOTE 6 - INCOME TAXES

Geographic Allocation of Income and Provision for Income Taxes
In millions	~~2024~~2025		~~2023~~2024		~~2022~~2023
Income (loss) before income taxes
Domestic	$	~~297~~518	$	~~455~~297	$	~~767~~455
Foreign	—		~~(1)~~—		(1)
Income before income taxes	$	~~297~~518	$	~~454~~297	$	~~766~~454
Current tax expense (benefit)
Federal	$	45(6)	$	9645	$	~~157~~96
State and local	~~(3)~~1		(63)		9(6)
Foreign	110		1		1
Total current tax expense	$	435	$	9143	$	~~167~~91
Deferred tax expense (benefit)
Federal	$	7(39)	$	~~(19)~~7	$	(219)
State and local	(38)		1(3)		31
Foreign	—		—		4
Total deferred tax expense (benefit)	$	(47)	$	4	$	(18)
Total deferred tax expense (benefit)	$	4	$	(18)	$	5
Provision (credit) for income taxes	$	(42)	$	47	$	73
Provision for income taxes	$	47	$	73	$	172
Net income	$	560	$	250	$	381
Net income	$	250	$	381	$	594

Reconciliation to U.S. Statutory Rate	2024			2023		2022
Reconciliation to U.S. Statutory Rate 1	2025
Statutory U.S. federal income tax rate	21.0		%	21.0	%	21.0	%
Amounts in millions	Amount			Percent
Unrecognized tax benefits and related interest	(1.1)			(2.7)		(0.7)
U.S. federal statutory tax rate	$	109		21.0	%
Federal tax accrual adjustments	(2.1)			—		—
State and local income taxes, net of federal income tax effect	(9)			(1.8)
State and local tax impact	(2.1)			(1.2)		1.7
Foreign tax effects
Other - net	0.1			(1.0)		0.5
Puerto Rico 2	9			1.8
Effective Tax Rate	15.8		%	16.1	%	22.5	%
Tax credits	(9)			(1.8)
Changes in valuation allowances	9			1.8
Nontaxable or nondeductible items
Nontaxable distribution	(155)			(29.9)
Other adjustments	4			0.8
Effective tax rate	$	(42)		(8.1)	%

Deferred Tax Balances at Dec 31	2024				2023
In millions	Assets		Liabilities		Assets		Liabilities
Property	$	—	$	109	$	—	$	123
Tax loss and credit carryforwards	13		—		11		—
Postretirement benefit obligations	95		—		92		—
Other accruals and reserves	251		—		270		—
Inventory	1		—		2		—
Other - net	12		—		16		—
Subtotal	$	372	$	109	$	391	$	123
Valuation allowances 1	(10)		—		(11)		—
Total	$	362	$	109	$	380	$	123

1.Disaggregated in accordance with ASU 2023-09, which was adopted prospectively in 2025.

12.~~Primarily~~Related ~~related~~ to ~~the~~branch ~~realization~~profits ~~of recorded~~ tax ~~benefits~~paid on ~~state~~a ~~tax~~distribution ~~loss~~received ~~carryforwards~~ from ~~operations~~a ~~in the United States~~subsidiary.


Reconciliation to U.S. Statutory Rate 1	2024		2023
Statutory U.S. federal income tax rate	21.0	%	21.0	%

Unrecognized tax benefits and related interest	(1.1)		(2.7)

Federal tax accrual adjustments	(2.1)		—



State and local tax impact	(2.1)		(1.2)
Other - net	0.1		(1.0)
Effective tax rate	15.8	%	16.1	%

1.As presented prior to adoption of ASU 2023-09, which was adopted prospectively in 2025.

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Operating Loss and Tax Credit Carryforwards at Dec 31	2024		2023
Deferred Tax Balances at Dec 31	2025				2024
In millions	Assets		~~Assets~~Liabilities		Assets		Liabilities
Operating loss carryforwards
Property	$	—	$	116	$	—	$	109
Expire within 5 years	$	4	$	5
Tax loss and credit carryforwards	89		—		13		—
Expire after 5 years or indefinite expiration	4		3
Postretirement benefit obligations	98		—		95		—
Total operating loss carryforwards	$	8	$	8
Other accruals and reserves	226		—		251		—
Tax credit carryforwards
Inventory	1		—		1		—
Expire within 5 years	$	2	$	2
Other - net	10		—		12		—
Expire after 5 years or indefinite expiration	3		1
Subtotal	$	424	$	116	$	372	$	109
Total tax credit carryforwards	$	5	$	3
Valuation allowances	(19)		—		(10)		—
Total tax loss and tax credit carryforwards	$	13	$	11
Total	$	405	$	116	$	362	$	109

Undistributed earnings of foreign subsidiaries and related companies that are deemed to be permanently invested were zero at December 31, 2024 and December 31, 2023. Accordingly, there are no unrecognized deferred tax liabilities related to such earnings.


Operating Loss and Tax Credit Carryforwards at Dec 31	2025		2024
In millions	Assets		Assets
Operating loss carryforwards
Expire within 5 years	$	3	$	4
Expire after 5 years or indefinite expiration	69		4
Total operating loss carryforwards	$	72	$	8
Tax credit carryforwards
Expire within 5 years	$	1	$	2
Expire after 5 years or indefinite expiration	16		3
Total tax credit carryforwards	$	17	$	5
Total tax loss and tax credit carryforwards	$	89	$	13

Undistributed earnings of foreign subsidiaries and related companies that are deemed to be permanently invested were zero at December 31, 2025 and December 31, 2024. Accordingly, there are no unrecognized deferred tax liabilities related to such earnings.

The Corporation is included in TDCC's consolidated federal income tax group. Current and deferred tax expenses are calculated for the Corporation as a stand-alone group and are allocated to the group from the consolidated totals, consistent with the TDCC-UCC Tax Sharing Agreement. The amounts reported as income taxes payable or receivable represent the Corporation's payment obligation (or refundable amount) to TDCC based on a theoretical tax liability calculated on a separate return method.

Under this method, the U.S. Gulf Coast Infrastructure Assets transactions and sale of UCC's ownership interest in Dow Technology Investments LLC, as discussed in Note 17, resulted in the recognition of a $~~299~~31 million tax payable at December 31, ~~2024~~2025 ($~~301~~299 million at December 31, ~~2023~~2024), included in “Other noncurrent obligations” in the consolidated balance sheets.

~~The following table provides a reconciliation of the Corporation's unrecognized tax benefits:~~41

Total Gross Unrecognized Tax Benefits
In millions	2024		2023		2022
Total unrecognized tax benefits at Jan 1	$	8	$	8	$	8
Decreases related to positions taken on items from prior years	—		—		—
Increases related to positions taken on items from prior years	—		—		—
Total unrecognized tax benefits at Dec 31	$	8	$	8	$	8
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate	$	8	$	8	$	8
Total amount of interest and penalties (benefit) recognized in "Provision for income taxes"	$	(4)	$	(12)	$	(10)
Total accrual for interest and penalties recognized in the consolidated balance sheets	$	11	$	11	$	10

The Corporation is currently under examination in a number of tax jurisdictions, including the U.S. federal and various state jurisdictions. The earliest open tax years are 2004 for state income taxes and 2007 for federal income taxes in the United States.

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The following table provides a reconciliation of the Corporation's unrecognized tax benefits:


Total Gross Unrecognized Tax Benefits
In millions	2025		2024		2023
Total unrecognized tax benefits at Jan 1	$	8	$	8	$	8
Decreases related to positions taken on items from prior years	—		—		—
Increases related to positions taken on items from prior years	—		—		—



Total unrecognized tax benefits at Dec 31	$	8	$	8	$	8
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate	$	8	$	8	$	8
Total amount of interest and penalties (benefit) recognized in "Provision (credit) for income taxes"	$	1	$	(4)	$	(12)
Total accrual for interest and penalties recognized in the consolidated balance sheets	$	12	$	11	$	11

On July 4, 2025, U.S. legislation formally titled "An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14” (“the Act”) and commonly referred to as the One Big Beautiful Bill Act was signed into law. The Act, among other things, extended key provisions of the 2017 Tax Cuts and Jobs Act and introduced targeted changes to the U.S. federal income tax regime. The Act has not materially impacted the Corporation's effective tax rate.

NOTE 7 - INVENTORIES

The following table provides a breakdown of inventories:

Inventories at Dec 31
In millions	~~2024~~2025		~~2023~~2024
Finished goods	$	~~238~~218	$	~~189~~238
Work in process	4436		3044
Raw materials	7278		6072
Supplies	94111		8794
Total	$	~~448~~443	$	~~366~~448
Adjustment of inventories to the LIFO basis	(~~152~~165)		(~~139~~152)
Total inventories	$	~~296~~278	$	~~227~~296

Inventories valued on the LIFO basis, principally U.S. chemicals and plastics product inventories, represented 6859 percent of the total inventories at December 31, ~~2024~~2025 and 6068 percent of the total inventories at December 31, ~~2023~~2024.

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NOTE 8 - PROPERTY

The following table provides a breakdown of property:

Property at Dec 31	Estimated Useful Lives (Years)
In millions		~~2024~~2025		~~2023~~2024
Land and land improvements	0-25	$	68	$	68
Buildings	5-50	~~259~~268		259
Machinery and equipment	3-2025	45,~~875~~341		4,~~799~~875
Other property	3-30	~~112~~120		~~111~~112
Construction in progress	—	~~418~~61		~~169~~418
Total property		$	5,~~732~~858	$	5,~~406~~732

The following table provides information regarding depreciation expense and capitalized interest:

In millions	~~2024~~2025		~~2023~~2024		~~2022~~2023
Depreciation expense	$	~~117~~146	$	~~146~~117	$	~~165~~146
Capitalized interest	$	139	$	813	$	58

NOTE 9 - INVESTMENTS IN RELATED COMPANIES

The Corporation's ownership interests in related companies at December 31, ~~2024~~2025 and ~~2023~~2024 were as follows:

Investments in Related Companies at Dec 31	Ownership Interest				Investment Balance
In millions	~~2024~~2025		~~2023~~2024		~~2024~~2025		~~2023~~2024
Dow International Holdings Company	5	%	5	%	$	232	$	232
Dow Quimica Mexicana S.A. de C.V.	14	%	14	%	5		5
Total investments in related companies					$	237	$	237

41See Note 17 for additional information about the Corporation's dividends and distributions received from its investments in related companies.

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NOTE 10 - INTANGIBLE ASSETS

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

Intangible Assets at Dec 31	~~2024~~2025						~~2023~~2024
In millions	Gross Carrying Amount		Accum Amort		Net		Gross Carrying Amount		Accum Amort		Net
Intangible assets with finite lives:
Developed technology	$	33	$	(33)	$	—	$	33	$	(33)	$	—
Software	68		(6263)		65		6768		(6062)		76
Total intangible assets	$	101	$	(9596)	$	65	$	~~100~~101	$	(9395)	$	76

The following table provides information regarding amortization expense:

Amortization Expense
In millions	~~2024~~2025		~~2023~~2024		~~2022~~2023
Software, included in "Cost of sales"	$	2	$	32	$	53

~~Total estimated amortization expense for the next five fiscal years, including amounts expected to be capitalized, is as follows:~~43

Estimated Amortization Expense for Next Five Years
In millions
2025	$	2
2026	$	2
2027	$	1
2028	$	1
2029	$	1

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Total estimated amortization expense for the next five fiscal years, including amounts expected to be capitalized, is as follows:


Estimated Amortization Expense for Next Five Years
In millions
2026	$	2
2027	$	2
2028	$	1
2029	$	1
2030	$	—

NOTE 11 - NOTES PAYABLE AND LONG-TERM DEBT

Notes Payable at Dec 31
In millions	~~2024~~2025			~~2023~~2024
Notes payable to related companies	$	19		$	68
Notes payable to related companies 1	$	118		$	19
Notes payable - other	—			1
Year-end average interest rates	4.30		%	3.15		%
Total notes payable	$	19		$	69
Year-end average interest rates	3.15		%	1.06		%

Long-Term Debt at Dec 31	2024 Average Rate		2024		2023 Average Rate		2023
In millions
Promissory notes and debentures:
Debentures due 2025	6.79	%	$	12	6.79	%	$	12
Debentures due 2025	7.50	%	113		7.50	%	113
Debentures due 2096	7.75	%	135		7.75	%	135
Finance lease obligations 1			11				3
Unamortized debt discount and issuance costs			(2)				(3)
Long-term debt due within one year			(126)				(1)
Total long-term debt			$	143			$	259

1.Includes borrowings on a revolving credit agreement with TDCC. See Note 17 for additional information.


Long-Term Debt at Dec 31	2025 Average Rate		2025		2024 Average Rate		2024

In millions
Promissory notes and debentures:
Debentures due 2025	—	%	$	—	6.79	%	$	12
Debentures due 2025	—	%	—		7.50	%	113
Debentures due 2096	7.75	%	135		7.75	%	135
Finance lease obligations 1			12				11
Unamortized debt discount and issuance costs			(2)				(2)
Long-term debt due within one year			(2)				(126)
Total long-term debt			$	143			$	143

1.See Note 13 for additional information.

Maturities of Long-Term Debt for Next Five Years at Dec 31, 2024
Maturities of Long-Term Debt for Next Five Years at Dec 31, 2025
In millions
2025	$	126
2026	$	2
2026	$	1
2027	$	2
2027	$	1
2028	$	2
2028	$	1
2029	$	2
2029	$	1
2030	$	2

~~2023~~2025 Activity

In ~~2023~~2025, the Corporation repaid $~~129~~125 million of long-term debt at maturity.

Letters of Credit

The Corporation utilizes letters of credit to support commitments made in the ordinary course of business. While the terms and amounts of letters of credit change, UCC generally has approximately $510 million to $15 million of outstanding letters of credit at any given time.

~~Debt Covenants and Default Provisions~~44

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Debt Covenants and Default Provisions

The Corporation's outstanding public debt has been issued under indentures which contain, among other provisions, covenants that the Corporation must comply with while the underlying notes are outstanding. Such covenants are typically based on the Corporation's size and financial position and include, subject to the exceptions and qualifications contained in the indentures, obligations not to (i) allow liens on principal U.S. manufacturing facilities, (ii) enter into sale and lease-back transactions with respect to principal U.S. manufacturing facilities, or (iii) merge into or consolidate with any other entity or sell or convey all or substantially all of its assets. Failure of the Corporation to comply with any of these covenants could, after the passage of any applicable grace period, result in a default under the applicable indenture which would allow the note holders to accelerate the due date of the outstanding principal and accrued interest on the subject notes. No such events have occurred or have been triggered at the time of the filing of this Annual Report on Form 10-K.

NOTE 12 - COMMITMENTS AND CONTINGENCIES

Environmental Matters

Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies.

At December 31, ~~2024~~2025, the Corporation had accrued obligations of $~~184~~188 million for probable environmental remediation and restoration costs ($~~194~~184 million at December 31, ~~2023~~2024), including $3539 million for the remediation of Superfund sites ($3735 million at December 31, ~~2023~~2024). This is management's best estimate of the costs for remediation and restoration with respect to environmental matters for which the Corporation has accrued liabilities, although it is reasonably possible that the ultimate cost with respect to these particular matters could range up to approximately two times that amount. Consequently, it is reasonably possible that environmental remediation and restoration costs in excess of amounts accrued could have a material impact on the Corporation's results of operations, financial condition and cash flows. It is the opinion of the Corporation's management, however, that the possibility is remote that costs in excess of the range disclosed will have a material impact on the Corporation's results of operations, financial condition and cash flows. Inherent uncertainties exist in these estimates primarily due to unknown environmental conditions, changing governmental regulations and legal standards regarding liability, and emerging remediation technologies for handling site remediation and restoration. As new or additional information becomes available and/or certain spending trends become known, management will evaluate such information in determination of the current estimate of the environmental liability.

The following table summarizes the activity in the Corporation's accrued obligations for environmental matters for the years ended December 31, ~~2024~~2025 and ~~2023~~2024:

Accrued Liability for Environmental Matters
In millions	~~2024~~2025		~~2023~~2024
Balance at Jan 1	$	~~194~~184	$	~~183~~194
Accrual adjustment	3735		4937
Payments against reserve	(4733)		(3747)
Foreign currency impact	—2		~~(1)~~—
Balance at Dec 31	$	~~184~~188	$	~~194~~184

The amounts charged to income on a pretax basis related to environmental remediation totaled $3735 million in ~~2024~~2025, $4437 million in ~~2023~~2024 and $7244 million in ~~2022~~2023. Capital expenditures for environmental protection were $1610 million in ~~2024~~2025, $4716 million in ~~2023~~2024 and $3847 million in ~~2022~~2023. The decrease in capital expenditures for environmental protection since 2023 was primarily due to the completion of two significant environmental protection projects on the U.S. Gulf Coast.

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Litigation

Asbestos-Related Matters

Introduction

The Corporation is and has been involved in a large number of asbestos-related suits filed primarily in state courts during the past several decades. These suits principally allege personal injury resulting from exposure to asbestos-containing products and frequently seek both actual and punitive damages. The alleged claims primarily relate to products that UCC sold in the past, alleged exposure to asbestos-containing products located on UCC’s premises and UCC’s responsibility for asbestos suits filed against a former UCC subsidiary, Amchem Products, Inc. ("Amchem"). In many cases, plaintiffs are unable to demonstrate that they have suffered any compensable loss as a result of such exposure, or that injuries incurred in fact resulted from exposure to the Corporation’s products. The Corporation expects more asbestos-related suits to be filed against UCC and Amchem in the future, and will aggressively defend or reasonably resolve, as appropriate, both pending and future claims.

Estimating the Asbestos-Related Liability

The Corporation has engaged Ankura Consulting Group, LLC ("Ankura") to perform periodic studies to estimate the undiscounted cost of disposing of pending and future claims against UCC and Amchem through the terminal year of 2049, including a reasonable forecast of future defense and processing costs. Each October, the Corporation requests Ankura to review its historical asbestos claim and resolution activity through the third quarter of the current year, including asbestos-related defense and processing costs, to determine the appropriateness of updating the most recent study. At each balance sheet date, the Corporation also compares current asbestos claim and resolution activity, including asbestos-related defense and processing costs, to the results of the most recent Ankura study to determine whether the accrual continues to be appropriate.

44In December 2023, Ankura stated that an update of its December 2022 study would not provide a more likely estimate of future events than the estimate reflected in that study and, therefore, the estimate in that study remained applicable. Based on the Corporation's internal review process and Ankura's response, the Corporation determined that no adjustment to the accrual was required.

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resolution activity, including asbestos-related defense and processing costs, to the results of the most recent Ankura study to determine whether the accrual continues to be appropriate.

In December 2022, Ankura completed a study of the Corporation's historical asbestos claim and resolution activity through September 30, 2022, including asbestos-related defense and processing costs, and provided estimates for the undiscounted cost of disposing of pending and future claims against UCC and Amchem through the terminal year of 2049. Based on the study and the Corporation's internal review process, it was determined that no adjustment to the accrual was required.

In December 2023, Ankura stated that an update of its December 2022 study would not provide a more likely estimate of future events than the estimate reflected in that study and, therefore, the estimate in that study remained applicable. Based on the Corporation's internal review process and Ankura's response, the Corporation determined that no adjustment to the accrual was required. At December 31, 2023, the asbestos-related liability for pending and future claims against UCC and Amchem, including future asbestos-related defense and processing costs, was $867 million, and approximately 25 percent of the recorded liability related to pending claims and approximately 75 percent related to future claims.

In December 2024, Ankura completed a study of the Corporation's historical asbestos claim and resolution activity through September 30, 2024, including asbestos-related defense and processing costs, and provided estimates for the undiscounted cost of disposing of pending and future claims against UCC and Amchem through the terminal year of 2049. Based on the study and the Corporation's internal review process, it was determined that no adjustment to the accrual was required. At December 31, 2024, the asbestos-related liability for pending and future claims against UCC and Amchem, including future asbestos-related defense and processing costs, was $791 million and approximately 23 percent of the recorded liability related to pending claims and approximately 77 percent related to future claims.

In December 2025, Ankura stated that an update of its December 2024 study would not provide a more likely estimate of future events than the estimate reflected in that study and, therefore, the estimate in that study remained applicable. Based on the Corporation's internal review process and Ankura's response, the Corporation determined that no adjustment to the accrual was required. At December 31, 2025, the asbestos-related liability for pending and future claims against UCC and Amchem, including future asbestos-related defense and processing costs, was $708 million, and approximately 28 percent of the recorded liability related to pending claims and approximately 72 percent related to future claims.

Summary

The Corporation's management believes the amounts recorded for the asbestos-related liability, including defense and processing costs, reflect reasonable and probable estimates of the liability based on current, known facts. However, future events, such as the number of new claims to be filed and/or received each year, the average cost of defending and disposing of each such claim, as well as the numerous uncertainties surrounding asbestos litigation in the United States over a significant period of time, could cause the actual costs for the Corporation to be higher or lower than those projected or those recorded. Any such event could result in an increase or decrease in the recorded liability.

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

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have a material impact on the Corporation's results of operations and cash flows for a particular period and on the consolidated financial position.

Other Litigation

The Corporation is also involved in a number of legal proceedings and claims with both private and governmental parties. These cover a wide range of matters, including, but not limited to: product liability; trade regulation; governmental tax and regulatory disputes; health, safety and environmental matters; employment matters; patent infringement; contracts; and commercial litigation. While it is not possible at this time to determine with certainty the ultimate outcome of any of the legal proceedings and claims referred to in this filing, management believes that the possibility is remote that the aggregate of all such other claims and lawsuits will have a material adverse impact on the results of operations, cash flows and financial position of the Corporation.

Purchase Commitments

The Corporation has outstanding purchase commitments and various commitments for take-or-pay or throughput agreements. The Corporation was not aware of any purchase commitments that were negotiated as part of a financing arrangement for the facilities that will provide the contracted goods or services or for the costs related to those goods or services at December 31, ~~2024~~2025 and ~~2023~~2024.

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NOTE 13 - LEASES

Operating lease ROU assets are included in "Operating lease right-of-use assets" and finance lease ROU assets are included in "Net property" in the consolidated balance sheets. With respect to lease liabilities, operating lease liabilities are included in "Operating lease liabilities - current" and "Operating lease liabilities - noncurrent," and finance lease liabilities are included in "Long-term debt due within one year" and "Long-Term Debt" in the consolidated balance sheets.

The Corporation routinely leases product and utility production facilities, sales and administrative offices, warehouses and tanks for product storage, motor vehicles, railcars, office machines and equipment. Some leases contain renewal provisions, purchase options and escalation clauses. The terms for these leased assets vary depending on the lease agreement. These leased assets have remaining lease terms of up to 2120 years. The Corporation's lease agreements do not contain any material residual value guarantees or restrictive covenants.

The components of lease cost for operating and finance leases for the years ended December 31, ~~2024~~2025, ~~2023~~2024 and ~~2022~~2023 were as follows:

Lease Cost	~~2024~~2025		~~2023~~2024		~~2022~~2023
In millions
Operating lease cost	$	1815	$	2518	$	25
Short-term lease cost	5755		4157		3141
Variable lease cost	1916		2519		1925
Amortization of right-of-use assets - finance	2		32		3
Total lease cost	$	96	$	94	$	78
Interest on lease liabilities	1		—		—
Total lease cost	$	89	$	96	$	94

The following table provides supplemental cash flow and other information related to leases:

Other Lease Information	2024		2023		2022
In millions
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	18	$	24	$	25
Financing cash flows for finance leases	$	2	$	3	$	3
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	2	$	12	$	2
Finance leases	$	11	$	2	$	1

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The following table summarizes the lease-related assets and liabilities recorded in the consolidated balance sheets at December 31, 2024 and 2023:

Lease Position	Balance Sheet Classification	Dec 31, 2024		Dec 31, 2023
In millions
Assets
Operating lease assets	Operating lease right-of-use assets	$	61	$	85
Finance lease assets	Property	25		14
Finance lease amortization	Accumulated depreciation	(13)		(12)
Total lease assets		$	73	$	87
Liabilities
Current
Operating	Operating lease liabilities - current	$	12	$	17
Finance	Long-term debt due within one year	1		1
Noncurrent
Operating	Operating lease liabilities - noncurrent	49		68
Finance	Long-Term Debt	10		2
Total lease liabilities		$	72	$	88

The weighted-average remaining lease term and discount rate for leases recorded in the consolidated balance sheets at December 31, 2024 and 2023 are provided below:

Lease Term and Discount Rate	Dec 31, 2024		Dec 31, 2023
Weighted-average remaining lease term
Operating leases	6.7 years		6.7 years
Finance leases	7.9 years		3.8 years
Weighted-average discount rate
Operating leases	3.21	%	3.42	%
Finance leases	5.49	%	4.38	%

The following table provides the maturities of lease liabilities at December 31, 2024:

Maturities of Lease Liabilities	Dec 31, 2024
In millions	Operating Leases		Finance Leases
2025	$	14	$	2
2026	13		2
2027	12		2
2028	10		2
2029	4		2
2030 and thereafter	16		5
Total future undiscounted lease payments	$	69	$	15
Less: Imputed interest	8		4
Total present value of lease liabilities	$	61	$	11

At December 31, 2024, the Corporation had no additional leases for assets that have not yet commenced.

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The following table provides supplemental cash flow and other information related to leases:


Other Lease Information	2025		2024		2023
In millions	2025		2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	15	$	18	$	24
Operating cash flows for finance leases	$	1	$	—	$	—
Financing cash flows for finance leases	$	1	$	2	$	3
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	6	$	2	$	12
Finance leases	$	2	$	11	$	2

The following table summarizes the lease-related assets and liabilities recorded in the consolidated balance sheets at December 31, 2025 and 2024:


Lease Position	Balance Sheet Classification	Dec 31, 2025		Dec 31, 2024
In millions
Assets
Operating lease assets	Operating lease right-of-use assets	$	56	$	61
Finance lease assets	Property	27		25
Finance lease amortization	Accumulated depreciation	(15)		(13)
Total lease assets		$	68	$	73
Liabilities
Current
Operating	Operating lease liabilities - current	$	12	$	12
Finance	Long-term debt due within one year	2		1
Noncurrent
Operating	Operating lease liabilities - noncurrent	44		49
Finance	Long-Term Debt	10		10
Total lease liabilities		$	68	$	72

The weighted-average remaining lease term and discount rate for leases recorded in the consolidated balance sheets at December 31, 2025 and 2024 are provided below:


Lease Term and Discount Rate	Dec 31, 2025		Dec 31, 2024
Weighted-average remaining lease term
Operating leases	6.1 years		6.7 years
Finance leases	6.8 years		7.9 years
Weighted-average discount rate
Operating leases	4.91	%	3.21	%
Finance leases	5.46	%	5.49	%

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The following table provides the maturities of lease liabilities at December 31, 2025:


Maturities of Lease Liabilities	Dec 31, 2025
In millions	Operating Leases		Finance Leases
2026	$	14	$	2
2027	13		2
2028	11		2
2029	6		2
2030	5		2
2031 and thereafter	12		4
Total future undiscounted lease payments	$	61	$	14
Less: Imputed interest	5		2
Total present value of lease liabilities	$	56	$	12

At December 31, 2025, the Corporation had one additional lease of approximately $35 million, for a building, which had not yet commenced. This lease is expected to commence in 2027 with a term of 5 years.

NOTE 14 - ACCUMULATED OTHER COMPREHENSIVE LOSS

The changes in each component of AOCL for the years ended December 31, ~~2024~~2025, ~~2023~~2024 and ~~2022~~2023 were as follows:

Accumulated Other Comprehensive Loss	~~2024~~2025		~~2023~~2024		~~2022~~2023
In millions
Cumulative Translation Adjustment
Beginning balance	$	(5352)	$	(5453)	$	(5354)
Unrealized gains (losses) on foreign currency translation	1(3)		1		—1
(Gains) losses reclassified from AOCL to net income 1	—		—		(1)
Other comprehensive income (loss), net of tax	(3)		1		1
Other comprehensive income (loss), net of tax	1		1		(1)
Ending balance	$	(55)	$	(52)	$	(53)
Ending balance	$	(52)	$	(53)	$	(54)
Pension and Other Postretirement Benefits
Beginning balance	$	(1,~~290~~292)	$	(1,~~348~~290)	$	(1,~~498~~348)
Gains (losses) arising during the period	(5747)		(~~116~~57)		96(116)
Tax (expense) benefit	1311		2513		~~(22)~~25
Net gains (losses) arising during the period	(4436)		(9144)		74(91)
Amortization of net loss and prior service credit reclassified from AOCL to net income 2	55		194		98
Amortization of net loss reclassified from AOCL to net income 1	94		55		194
Tax expense (benefit) 3	(13)		(45)		(22)
Tax expense (benefit) 2	(22)		(13)		(45)
Net loss and prior service credit reclassified from AOCL to net income	42		149		76
Net loss reclassified from AOCL to net income	72		42		149
Other comprehensive income (loss), net of tax	~~(2)~~36		58(2)		~~150~~58
Ending balance	$	(1,~~292~~256)	$	(1,~~290~~292)	$	(1,~~348~~290)
Total AOCL ending balance	$	(1,~~344~~311)	$	(1,~~343~~344)	$	(1,~~402~~343)

1.~~Reclassified~~These toAOCL ~~"Sundry~~components ~~income~~are included in the computation of net periodic benefit cost (~~expense~~credit) -of ~~net~~the Corporation's defined benefit pension and other postretirement benefit plans." See Note 15 for additional information.

2.~~These~~Reclassified ~~AOCL~~to ~~components~~"Provision ~~are included in the computation of net periodic benefit cost~~ (credit) ~~of the Corporation's defined benefit pension and other postretirement benefit plans. See Note 15~~ for ~~additional~~income ~~information~~taxes."

~~3.Reclassified to "Provision for income taxes."~~49

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NOTE 15 - PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS

Pension Plans

The Corporation has both funded and unfunded defined benefit plans in the United States, which covered substantially all U.S. employees through December 31, 2023. In 2021, TDCC announced changes to the design of its U.S. tax-qualified and non-qualified pension plans, including the plans of the Corporation (collectively, the “UCC Plans”). As a result, effective December 31, 2023, the Corporation froze the pensionable compensation and credited service amounts used to calculate pension benefits for substantially all employees who participated in the UCC Plans, except for certain employees subject to collective bargaining agreements. In 2024, the Corporation froze pension benefits for substantially all remaining employees who participated in the UCC Plans.

Separately, in the fourth quarter of 2023, certain of the Corporation’s tax-qualified pension plans purchased a nonparticipating group annuity contract from an insurance company, irrevocably transferring ~~approximately~~certain ~~$230 million of~~ benefit obligations and ~~$210 million of~~ related plan assets to the ~~insurers~~insurer. This transaction did not require any cash funding from the Corporation and did not impact the pension benefits of participants. As a result of this transaction, the Corporation recognized a non-cash pretax settlement charge of $149 million in 2023, related to the accelerated recognition of a portion of the accumulated actuarial losses of the plan, recorded in “Sundry income (expense) – net” in the consolidated statements of income. In the second quarter of 2024, the Corporation initiated the termination of a U.S. tax-qualified pension plan, which includes the tax-qualified benefit obligations for substantially all employees hired after January 1, 2008. These employees earned benefits based on a set percentage of annual pay, plus interest. As part of the plan termination process, the Corporation will offer participants of the plan annuity or lump sum distribution options. Final asset distributions are expected to be paid from plan assets in the fourth quarter of 2025.

48In the fourth quarter of 2025, the Corporation terminated certain U.S. tax-qualified pension plans, which included the tax-qualified benefit obligations for substantially all employees hired after January 1, 2008. These employees earned benefits based on a set percentage of annual pay, plus interest. As part of the plan termination process, participants were offered a lump sum distribution, an immediate monthly annuity or a deferred payment, with the annuity and deferred payment options administered by a highly rated insurance company that assumes responsibility for the future administration and payment of benefits. These transactions were funded with existing plan assets and did not require any cash funding from the Corporation. As a result of these actions, the Corporation recorded non-cash settlement charges of $37 million, related to the accelerated recognition of the accumulated actuarial losses of the plans, recorded in “Sundry income (expense) – net” in the consolidated statements of income.

~~Table~~The ofCorporation's ~~Contents~~funding policy is to contribute to plans when pension laws or economics either require or encourage funding. In 2025, UCC contributed $2 million to its pension plans, including contributions to fund benefit payments for its non-qualified supplemental plan. UCC expects to contribute approximately $1 million to its pension plans in 2026.

The Corporation's funding policy is to contribute to plans when pension laws or economics either require or encourage funding. In 2024, UCC contributed $2 million to its pension plans, including contributions to fund benefit payments for its non-qualified supplemental plan. UCC expects to contribute approximately $3 million to its pension plans in 2025.

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

Pension Plan Assumptions	Benefit Obligationsat Dec 31				Net Periodic Benefit Costfor the Year Ended
	2024		2023		2024		2023		2022
	2025		2024		2025		2024		2023
Discount rate	5.6735	%	5.2567	%	5.2567	%	5.7225	%	25.9472	%
Interest crediting rate for applicable benefits	34.4750	%	43.5047	%	43.5047	%	4.50	%	4.50	%
Rate of compensation increase 1	—	%	~~4.25~~—	%	~~4.25~~—	%	4.25	%	4.25	%
Expected return on plan assets					6.4033	%	6.8040	%	6.80	%

1.The rate of compensation increase assumption is not relevant at December 31, 2025 and 2024, and for the year ended December 31, 2025, due to the freezing of plan benefits.

Other Postretirement Benefit Plans

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

The Corporation funds most of the cost of these health care and life insurance benefits as incurred. In 2024, UCC did not make any contributions to its other postretirement benefit plan trust. Likewise, UCC does not expect to contribute assets to its other postretirement benefit plan trust in 2025. 50

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The Corporation funds most of the cost of these health care and life insurance benefits as incurred. In 2025, UCC did not make any contributions to its other postretirement benefit plan trust. Likewise, UCC does not expect to contribute assets to its other postretirement benefit plan trust in 2026.

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

Other Postretirement Benefit Plan Assumptions	Benefit Obligationsat Dec 31				Net Periodic Benefit Costfor the Year Ended
	2024		2023		2024		2023		2022
	2025		2024		2025		2024		2023
Discount rate	5.6428	%	5.2064	%	5.2064	%	5.5620	%	25.8456	%
Health care cost trend rate assumed for next year	7.0050	%	67.5000	%	67.5000	%	6.5750	%	6.5057	%
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	~~2033~~2036		2033		2033		2033		~~2028~~2033

Assumptions

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The discount rates utilized to measure the pension and other postretirement obligations of the plans were based on the yield on high-quality corporate fixed income investments at the measurement date. Future expected actuarially determined cash flows for the plans are individually discounted at the spot rates under the Willis Towers Watson U.S. RATE:Link 60-90 corporate yield curve (based on 60th to 90th percentile high-quality corporate bond yields) to arrive at the plan’s obligations as of the measurement date.

The Corporation's mortality assumption used for the U.S. plans is a benefit-weighted version of the Society of Actuaries' RP-2014 base table with future rates of mortality improvement based on a modified version of the assumptions used in the Social Security Administration's 2021 trustees report.

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Summarized information on the Corporation's pension and other postretirement benefit plans is as follows:

Change in Projected Benefit Obligations, Plan Assets and Funded Status for All Plans	Defined Benefit Pension Plans				Other Postretirement Benefit Plan
In millions	~~2024~~2025		~~2023~~2024		~~2024~~2025		~~2023~~2024
Change in projected benefit obligations:
Benefit obligations at beginning of year	$	2,~~633~~468	$	2,~~860~~633	$	~~133~~120	$	~~128~~133
Service cost	—		32		—		—
Interest cost	125		129		7		7
Interest cost	129		147		7		7
Actuarial changes in assumptions and experience	90		(85)		(4)		(14)
Actuarial changes in assumptions and experience	(85)		55		(14)		6
Benefits paid	(208)		(209)		(8)		(7)
Benefits paid	(209)		(246)		(7)		(8)
Settlement 1	(53)		—		—		—
Settlement 1	—		(211)		—		—
Other	1		—		—		1
Other	—		(4)		1		—
Benefit obligations at end of year	$	2,423	$	2,468	$	115	$	120
Benefit obligations at end of year	$	2,468	$	2,633	$	120	$	133
Change in plan assets:
Fair value of plan assets at beginning of year	$	2,~~370~~177	$	2,~~679~~370	$	—	$	—
Actual return on plan assets	10196		~~146~~10		—		—
Employer contributions	2		2		—		—
Asset transfers	—		(5)		—		—
Benefits paid	(208)		(209)		—		—
Benefits paid	(209)		(246)		—		—
Settlement 1	(53)		—		—		—
Settlement 2	—		(211)		—		—
Other	—		4		—		—
Other	4		5		—		—
Fair value of plan assets at end of year	$	2,114	$	2,177	$	—	$	—
Fair value of plan assets at end of year	$	2,177	$	2,370	$	—	$	—
Funded status at end of year	$	(309)	$	(291)	$	(115)	$	(120)
Funded status at end of year	$	(291)	$	(263)	$	(120)	$	(133)

Net amounts recognized in the consolidated balance sheets at Dec 31:
Deferred charges and other assets	$	—	$	10	$	—	$	—
Accrued and other current liabilities	$	(1)	$	(1)	$	(11)	$	(11)
Accrued and other current liabilities	(1)		(2)		(11)		(12)
Pension and other postretirement benefits - noncurrent	(308)		(290)		(104)		(109)
Pension and other postretirement benefits - noncurrent	(290)		(271)		(109)		(121)
Net amount recognized	$	(309)	$	(291)	$	(115)	$	(120)
Net amount recognized	$	(291)	$	(263)	$	(120)	$	(133)
Pretax amounts recognized in accumulated other comprehensive loss at Dec 31:
Net loss (gain)	$	1,~~756~~700	$	1,~~752~~756	$	(~~104~~95)	$	(~~102~~104)

1.The ~~2023~~2025 impact ~~primarily~~ relates to the ~~transfer~~settlement ofand ~~certain~~termination ~~pension benefit obligations through the purchase~~ of ~~annuity~~certain ~~contracts~~U.S. ~~from~~tax-qualified anpension ~~insurance company, triggering settlement accounting~~plans.

~~2.The~~Significant ~~2023~~components ~~impact~~of ~~primarily~~the ~~relates~~overall todecrease in the ~~purchase~~Corporation's ofbenefit anobligation ~~annuity~~for ~~contract~~the ~~associated~~year ~~with~~ended ~~the~~December 31, ~~transfer~~2025, were benefits paid and settlement of certain pension benefit obligations, partially offset by interest cost and the change in weighted-average discount rates, which decreased from 5.67 percent at December 31, 2024, to an5.35 percent ~~insurance~~at ~~company~~December 31, ~~triggering~~2025. ~~settlement~~Significant ~~accounting~~components of the overall decrease in the Corporation's benefit obligation for the year ended December 31, 2024 were benefits paid and the change in weighted-average discount rates, which increased from 5.25 percent at December 31, 2023, to 5.67 percent at December 31, 2024.

50The accumulated benefit obligation for all defined benefit pension plans was $2.4 billion at December 31, 2025, and $2.5 billion at December 31, 2024.

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A significant component of the overall decrease in the Corporation's benefit obligation for the year ended December 31, 2024, was due to benefits paid and the change in weighted-average discount rates, which increased from 5.25 percent at December 31, 2023, to 5.67 percent at December 31, 2024. A significant component of the overall decrease in the Corporation's benefit obligation for the year ended December 31, 2023 was due to the irrevocable transfer of certain benefit obligations to a third-party insurance company, partially offset by the change in weighted-average discount rates, which decreased from 5.60 percent at December 31, 2022, to 5.25 percent at December 31, 2023.


Pension Plans with Accumulated Benefit Obligations or Pension Benefit Obligations in Excess of Plan Assets at Dec 31
In millions	2025		2024
Accumulated benefit obligations / Pension benefit obligations 1	$	2,423	$	2,468
Fair value of plan assets	$	2,114	$	2,177

~~The~~1.Cumulative accumulated ~~benefit~~pension ~~obligation~~obligations ~~for~~in ~~all~~excess ~~defined~~of ~~benefit~~plan assets and cumulative pension ~~plans~~benefit ~~was~~obligations ~~$2.5 billion at~~in ~~December 31,~~excess ~~2024,~~of ~~and~~plan ~~$2.6 billion~~assets are the same at December 31, ~~2023~~2025 and 2024.

Pension Plans with Accumulated Benefit Obligations or Pension Benefit Obligations in Excess of Plan Assets at Dec 31
Net Periodic Benefit Cost (Credit) for All Plans for the Year Ended Dec 31	Defined Benefit Pension Plans						Other Postretirement Benefit Plan
In millions	~~2024~~2025		~~2023~~2024		2023		2025		2024		2023
Accumulated benefit obligations / Pension benefit obligations 1	$	2,468	$	2,593
Net Periodic Benefit Cost (Credit):
Fair value of plan assets	$	2,177	$	2,320
Service cost	$	—	$	—	$	32	$	—	$	—	$	—
Interest cost	125		129		147		7		7		7
Expected return on plan assets	(157)		(169)		(204)		—		—		—
Amortization of net (gain) loss	70		67		60		(13)		(12)		(15)
Settlement loss 1	37		—		149		—		—		—
Net periodic benefit cost (credit)	$	75	$	27	$	184	$	(6)	$	(5)	$	(8)
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
Net (gain) loss	$	51	$	71	$	109	$	(4)	$	(14)	$	7
Amortization of net gain (loss)	(70)		(67)		(60)		13		12		15
Settlement loss 1	(37)		—		(149)		—		—		—
Total recognized in other comprehensive (income) loss	$	(56)	$	4	$	(100)	$	9	$	(2)	$	22
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	19	$	31	$	84	$	3	$	(7)	$	14

1.~~Cumulative~~The ~~accumulated~~2025 ~~pension~~impact ~~obligations~~relates into ~~excess~~the settlement and termination of ~~plan~~certain ~~assets~~U.S. ~~and~~tax-qualified ~~cumulative~~pension plans. The 2023 impact relates to the settlement of certain pension benefit obligations inthrough ~~excess~~the purchase of ~~plan~~a ~~assets~~nonparticipating ~~are~~group ~~the~~annuity ~~same~~contract atfrom ~~December 31,~~an ~~2024~~insurance ~~and 2023~~company.

Net Periodic Benefit Cost (Credit) for All Plans for the Year Ended Dec 31	Defined Benefit Pension Plans						Other Postretirement Benefit Plan
In millions	2024		2023		2022		2024		2023		2022
Net Periodic Benefit Cost (Credit):
Service cost	$	—	$	32	$	37	$	—	$	—	$	1
Interest cost	129		147		91		7		7		3
Expected return on plan assets	(169)		(204)		(226)		—		—		—
Amortization of prior service credit	—		—		(1)		—		—		—
Amortization of net (gain) loss	67		60		108		(12)		(15)		(9)
Settlement loss 1	—		149		—		—		—		—
Net periodic benefit cost (credit)	$	27	$	184	$	9	$	(5)	$	(8)	$	(5)
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
Net (gain) loss	$	71	$	109	$	(47)	$	(14)	$	7	$	(49)
Amortization of prior service credit	—		—		1		—		—		—
Amortization of net gain (loss)	(67)		(60)		(108)		12		15		9
Settlement loss 1	—		(149)		—		—		—		—
Total recognized in other comprehensive (income) loss	$	4	$	(100)	$	(154)	$	(2)	$	22	$	(40)
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	31	$	84	$	(145)	$	(7)	$	14	$	(45)

1.The 2023 impact relates to the settlement of certain pension benefit obligations through the purchase of a nonparticipating group annuity contract from an insurance company.

Net periodic benefit cost (credit), other than the service cost component, is included in "Sundry income (expense) - net" in the consolidated statements of income. See Note 5 for additional information.

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Estimated Future Benefit Payments

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

Estimated Future Benefit Payments at Dec 31, 2024	Defined Benefit Pension Plans		Other Postretirement Benefit Plan
Estimated Future Benefit Payments at Dec 31, 2025	Defined Benefit Pension Plans		Other Postretirement Benefit Plan
In millions
2025 1	$	290	$	11
2026	$	243	$	11
2026	209		11
2027	207		11
2027	205		11
2028	203		11
2028	202		11
2029	199		10
2029	197		11
2030	194		10
2030 through 2034	914		48
2031 - 2035	891		43
Total	$	21,~~017~~937	$	~~103~~96

~~1.Includes benefit payments related to the planned termination of a U.S. tax-qualified pension plan.~~53

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Plan Assets

Plan assets consist primarily of equity and fixed income securities of U.S. and foreign issuers, and include alternative investments, such as real estate, private equity and other absolute return strategies. Plan assets totaled $2.21 billion at December 31, ~~2024~~2025 and $2.42 billion at December 31, ~~2023~~2024 and included no directly held common stock of Dow Inc.

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

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

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

The Corporation mitigates the credit risk of investments by establishing guidelines with investment managers that limit investment in any single issue or issuer to an amount that is not material to the portfolio being managed. These guidelines are monitored for compliance both by the Corporation and the external managers. Credit risk related to derivative activity is mitigated by utilizing multiple counterparties, collateral support agreements, and centralized clearing where appropriate. A short-term investment money market fund is utilized as the sweep vehicle for the pension plan, which from time to time can represent a significant investment.

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The weighted-average target allocation for plan assets of the Corporation's pension plan is summarized as follows:

Target Allocation for Plan Assets at Dec 31, 2024	Target Allocation
Target Allocation for Plan Assets at Dec 31, 2025	Target Allocation
Asset Category
Equity securities	2324	%
Fixed income securities	4548
Alternative investments	2728
Other	5
Total	100	%

Fair value calculations may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Corporation believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

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

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

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obtained from various market sources. For other assets for which observable inputs are used, fair value is derived through the use of fair value models, such as a discounted cash flow model or other standard pricing models.

For pension plan assets classified as Level 3 measurements, total fair value is based on significant unobservable inputs including assumptions where there is little, if any, market activity for the investment.

Certain pension plan assets are held in funds where fair value is based on an estimated net asset value per share (or its equivalent) as of the most recently available fund financial statements which are received on a monthly or quarterly basis. These valuations are reviewed for reasonableness based on applicable sector, benchmark and company performance. Adjustments to valuations are made where appropriate to arrive at an estimated net asset value per share at the measurement date. These funds are not classified within the fair value hierarchy.

53The following table summarizes the bases used to measure the Corporation’s pension plan assets at fair value at December 31, 2025 and 2024:

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Basis of Fair Value Measurements	Dec 31, 2025								Dec 31, 2024
In millions	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Cash and cash equivalents	$	322	$	287	$	35	$	—	$	178	$	157	$	21	$	—
Equity securities:
U.S. equity securities	$	262	$	262	$	—	$	—	$	153	$	153	$	—	$	—
Non - U.S. equity securities	105		104		—		1		225		213		11		1
Total equity securities	$	367	$	366	$	—	$	1	$	378	$	366	$	11	$	1
Fixed income securities:
Debt - government-issued	$	524	$	—	$	524	$	—	$	660	$	—	$	660	$	—
Debt - corporate-issued	186		—		186		—		216		—		216		—
Debt - asset-backed	23		—		23		—		34		—		34		—
Total fixed income securities	$	733	$	—	$	733	$	—	$	910	$	—	$	910	$	—
Alternative investments:



Derivatives - asset position	$	8	$	—	$	8	$	—	$	12	$	—	$	12	$	—
Derivatives - liability position	(37)		—		(37)		—		(47)		—		(47)		—
Total alternative investments	$	(29)	$	—	$	(29)	$	—	$	(35)	$	—	$	(35)	$	—

Subtotal	$	1,393	$	653	$	739	$	1	$	1,431	$	523	$	907	$	1
Investments measured at net asset value:
Hedge funds	$	88							$	140
Private markets	495								460
Real estate	140								155
Total investments measured at net asset value	$	723							$	755
Items to reconcile to fair value of plan assets:
Pension trust receivables 1	$	1							$	1
Pension trust payables 2	(3)								(10)
Total	$	2,114							$	2,177

The following table summarizes the bases used to measure the Corporation’s pension plan assets at fair value for the years ended December 31, 2024 and 2023:

Basis of Fair Value Measurements	Dec 31, 2024								Dec 31, 2023
In millions	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Cash and cash equivalents	$	178	$	157	$	21	$	—	$	203	$	188	$	15	$	—
Equity securities:
U.S. equity securities	$	153	$	153	$	—	$	—	$	239	$	238	$	1	$	—
Non - U.S. equity securities	225		213		11		1		250		238		11		1
Total equity securities	$	378	$	366	$	11	$	1	$	489	$	476	$	12	$	1
Fixed income securities:
Debt - government-issued	$	660	$	—	$	660	$	—	$	720	$	—	$	720	$	—
Debt - corporate-issued	216		—		216		—		265		1		264		—
Debt - asset-backed	34		—		34		—		37		—		37		—
Total fixed income securities	$	910	$	—	$	910	$	—	$	1,022	$	1	$	1,021	$	—
Alternative investments:
Derivatives - asset position	$	12	$	—	$	12	$	—	$	7	$	—	$	7	$	—
Derivatives - liability position	(47)		—		(47)		—		(13)		—		(13)		—
Total alternative investments	$	(35)	$	—	$	(35)	$	—	$	(6)	$	—	$	(6)	$	—
Other investments	$	—	$	—	$	—	$	—	$	1	$	1	$	—	$	—
Subtotal	$	1,431	$	523	$	907	$	1	$	1,709	$	666	$	1,042	$	1
Investments measured at net asset value:
Hedge funds	$	140							$	125
Private markets	460								344
Real estate	155								199
Total investments measured at net asset value	$	755							$	668
Items to reconcile to fair value of plan assets:
Pension trust receivables 1	$	1							$	7
Pension trust payables 2	(10)								(14)
Total	$	2,177							$	2,370

1.Primarily receivables for investment securities sold.

2.Primarily payables for investment securities purchased.

~~The~~There ~~following~~were ~~table~~no ~~summarizes the~~ changes in fair value of Level 3 pension plan assets for the years ended December 31, ~~2024~~2025 and ~~2023:~~2024.

Fair Value Measurement of Level 3 Pension Plan Assets	Equity Securities		Alternative Investments		Total
In millions
Balance at Jan 1, 2023	$	—	$	2	$	2
Actual return on plan assets:
Relating to assets held at Dec 31, 2023	1		(2)		(1)
Balance at Dec 31, 2023	$	1	$	—	$	1
Actual return on plan assets:
Relating to assets held at Dec 31, 2024	—		—		—
Balance at Dec 31, 2024	$	1	$	—	$	1

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Defined Contribution Plans

U.S. employees may participate in defined contribution plans by contributing a portion of their compensation, which is partially matched by the Corporation. In addition, beginning on January 1, 2024, all eligible U.S. employees also ~~received~~receive an automatic non-elective contribution of 4 percent of eligible compensation to their respective defined contribution plans. Expense recognized for all defined contribution plans was $2120 million in ~~2024~~2025, $1221 million in ~~2023~~2024 and $12 million in ~~2022~~2023.

NOTE 16 - FAIR VALUE MEASUREMENTS

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

Assets that are measured using significant other observable inputs are primarily valued by reference to quoted prices of similar assets in active markets, adjusted for any terms specific to that asset. For all other assets for which observable inputs are used, fair value is derived through the use of fair value models, such as a discounted cash flow model or other standard pricing models. There were no transfers between Levels 1 and 2 in the years ended December 31, ~~2024~~2025 and ~~2023~~2024.

The following table summarizes the fair value of the Corporation's financial instruments at December 31, ~~2024~~2025 and ~~2023~~2024:

Fair Value of Financial Instruments	~~2024~~2025								~~2023~~2024
In millions	Cost		Gain		Loss		Fair Value		Cost		Gain		Loss		Fair Value
Cash equivalents 1	$	11	$	—	$	—	$	11	$	1011	$	—	$	—	$	1011
Long-term debt including debt due within one year	$	(~~269~~145)	$	—	$	(2612)	$	(~~295~~157)	$	(~~260~~269)	$	—	$	(4726)	$	(~~307~~295)

1.Money market fund is included in "Cash and cash equivalents" in the consolidated balance sheets and held at amortized cost, which approximates fair value.

Cost approximates fair value for all other financial instruments.

Fair Value Measurements on a Nonrecurring Basis

In 2023, as part of the 2023 Restructuring Program, the Corporation rationalized its manufacturing assets to achieve its structural cost improvement initiatives. The manufacturing assets associated with this plan, classified as Level 3 measurements and valued using unobservable inputs, were written down to zero and the Corporation recorded an impairment charge of $2 million, which was included in "Restructuring and asset related charges - net" in the consolidated statements of income.

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NOTE 17 - RELATED PARTY TRANSACTIONS

U.S. Gulf Coast Infrastructure Assets

As part of the Corporation's and TDCC's application of a best-owner mindset when reviewing non-product producing assets and to allow UCC and TDCC to have more visibility into the operations and economics of such assets, on November 1, 2023, UCC and certain other TDCC subsidiaries contributed certain production supporting infrastructure assets on the U.S. Gulf Coast (which are not product-producing assets themselves) to a TDCC subsidiary, now known as Diamond Infrastructure Solutions, that will manage the contributed assets ~~("TDCC Infrastructure Subsidiary")~~ in exchange for a membership interest ("Common Control Membership Interest") in the ~~TDCC Infrastructure Subsidiary~~subsidiary. The carrying value of net assets contributed by UCC was $389 million. In connection with this contribution, TDCC and UCC entered into various agreements, designating UCC to receive or provide certain site services as defined under the agreements. Such agreements were designed to ensure the continuation of services to support UCC's existing operations. UCC recognized equity earnings of $10 million in the fourth quarter of 2023 related to this investment, recorded in "Sundry income (expense) - net" in the consolidated statements of income.

On December 1, 2023, UCC sold its Common Control Membership Interest to another TDCC subsidiary in exchange for a $1,543 million term loan receivable, recorded in "Noncurrent receivables from related companies" in the consolidated balance sheets. This loan bears interest based on alternative reference rates and matures on December 1, 2043. This transaction was accounted for as a transfer between entities under common control, which resulted in an increase to additional paid in capital of $893 million, net of tax of $251 million, and recorded in "Additional Paid-in Capital" in the consolidated statements of equity. Interest on the term loan is capitalized, resulting in a term loan balance of $1,724 million at December 31, 2025 ($1,642 million at December 31, 2024).

Sale of Ownership Interest in Dow Technology Investments LLC ("DTIL")

In December 2023, the Corporation sold a portion of its 50 percent ownership interest in DTIL, which had no carrying value, to its joint venture partner, Dow Global Technologies LLC ("DGTL"), a TDCC subsidiary, thereby reducing UCC's ownership interest in DTIL to 0.5 percent. As part of this transaction, the Corporation received cash proceeds and recognized a pretax gain of $206 million, recorded in "Sundry income (expense) - net" in the consolidated statements of income. In 2024, the Corporation sold its remaining ownership interest to DGTL for cash proceeds of $2 million and recognized a pretax gain, recorded in "Sundry income (expense) - net" in the consolidated statements of income.

The Corporation evaluated the divestment of the infrastructure assets on the U.S. Gulf Coast and the sale of its ownership interest in DTIL and determined they did not represent strategic shifts that had a major effect on the Corporation’s operations and financial results and did not qualify as an individually significant component of the Corporation. As a result, the transactions are not reported as discontinued operations.

Product and Services Agreements

The Corporation sells its products to TDCC to simplify the customer interface process. Products are sold to and purchased from TDCC at prices determined in accordance with the terms of an agreement between UCC and TDCC. After each quarter, the Corporation and TDCC analyze the pricing used for the sales in that quarter and reach agreement on any necessary adjustments, at which point the prices are final. The Corporation also procures certain commodities, raw materials, pipeline, storage and site services through TDCC and ~~the~~Diamond ~~TDCC~~ Infrastructure ~~Subsidiary~~Solutions and pays commissions and service fees based on the services, volume and type of commodities and raw materials purchased.

The Corporation also has a master services agreement with TDCC, whereby TDCC provides services including, but not limited to: accounting; legal; treasury (investments, cash management, risk management, insurance); procurement; human resources; environmental; health and safety; and business management for UCC. Under the master services agreement with TDCC, general administrative and overhead type services that TDCC routinely allocates to various businesses are charged to UCC. The master services agreement cost allocation basis is headcount and includes a 10 percent service fee.

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The following table summarizes UCC’s transactions with TDCC and aDiamond ~~TDCC~~Infrastructure ~~subsidiary~~Solutions related to product and services agreements for the years ended December 31, ~~2024~~2025, ~~2023~~2024 and ~~2022~~2023:

Product and Services Agreements Transactions	~~2024~~2025		~~2023~~2024		~~2022~~2023		Income Statement
In millions							Classification
Activity-based costs 1	$	~~599~~692	$	~~158~~599	$	89158	Cost of sales
Commodity and raw materials purchases 2	$	~~996~~1,056	$	~~1,078~~996	$	1,~~909~~078	Cost of sales
Commission expense	$	2019	$	1920	$	19	Sundry income (expense) - net
General administrative and overhead type services and service fee 3	$	69	$	72	$	65	Sundry income (expense) - net
General administrative and overhead type services and service fee	$	69	$	69	$	72	Sundry income (expense) - net

1.AsThe increase in activity-based costs was primarily due to the impact of higher fuel gas and energy costs and other charges in 2025. The 2024 increase in activity-based costs was a result of UCC's divestment of its infrastructure assets in the fourth quarter of 2023 ("Infrastructure Divestment"), at which time certain site infrastructure-related ~~costs~~services previously administered independently by the Corporation ~~are~~were ~~now~~subsequently performed by ~~another~~Diamond ~~TDCC~~Infrastructure ~~subsidiary~~Solutions and billed to the Corporation, resulting in increased related party activity-based costs. The Infrastructure Divestment resulted in certain changes in other cost flows, which further increased activity-based costs. Activity-based costs include short-term lease cost of $1615 million related to pipeline and site services for the year ended December 31, 2025 ($16 million for the year ended December 31, 2024), included in Lease Cost in Note 13.

2.Period-end balances on hand are included in inventory. The ~~2024~~2025 ~~decrease~~increase in purchase costs was primarily ~~due~~driven toby ~~changes~~higher inraw ~~cost~~material ~~flows~~prices ~~resulting~~partially ~~from~~offset ~~the~~by ~~Infrastructure~~lower ~~Divestment~~volumes. The ~~2023~~2024 decrease in purchase costs was primarily due to ~~lower~~changes ~~feedstock~~in ~~and~~cost ~~energy~~flows ~~costs~~resulting onfrom ~~lower~~the ~~production~~Infrastructure Divestment.

3.The increase in services and fees in 2023 was primarily due to changes in cost flows and the cost of site infrastructure services resulting from the Infrastructure Divestment.

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

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

The Corporation experienced an unplanned shutdown of its manufacturing site in Seadrift, Texas, in October 2023, resulting in lost sales and margins in the fourth quarter of 2023. These losses were covered, in part, by an insurance program purchased by TDCC from its insurance affiliate. In the first quarter of 2024, the Corporation recorded insurance recoveries of $22 million from TDCC for covered losses, included in "Cost of sales" in the consolidated statements of income.

Tax Sharing Agreement

In accordance with the Tax Sharing Agreement between the Corporation and TDCC, the Corporation makes payments to TDCC to cover the Corporation's estimated federal tax liability; payments were $90223 million in ~~2024~~2025, $~~113~~90 million in ~~2023~~2024 and $~~155~~113 million in ~~2022~~2023.

The Corporation recorded decreases of approximately $280 million of its income tax and related interest receivable during 2024 due to tax audit closures. These amounts were ~~reclassified from "Income taxes receivable" and "Noncurrent receivables" in the consolidated balance sheets and~~ settled through the Corporation's cash management process with TDCC and are reflected in "Related company receivables" and "Other assets and liabilities" in the consolidated statements of cash flows.

During 2025, TDCC sold minority portions of its membership interests in Diamond Infrastructure Solutions. The Corporation previously sold its membership interests in Diamond Infrastructure Solutions to another TDCC subsidiary in 2023. As a result of TDCC's sales of membership interests, $268 million of the noncurrent tax liability resulting from UCC's 2023 divestment became due. At December 31, 2025, $219 million has been settled through the Corporation's cash management process with TDCC and $49 million is recorded in "Accounts payable - Related companies" in the consolidated balance sheets.

Cash Management

As part of TDCC’s cash management process, UCC is a party to a revolving loan with TDCC that allows TDCC to borrow an aggregate outstanding amount not to exceed $2 billion. The agreement, which became effective on December 2, 2024, earns interest based on alternative reference rates and matures annually, with automatic one year extensions unless either party terminates the agreement. This agreement amended and restated a prior revolving loan agreement that was scheduled to mature on December 30, 2024, and earned interest based on alternative reference rates. At December 31, ~~2024~~2025, the Corporation had a note receivable of $~~593~~7 million ($~~799~~593 million at December 31, ~~2023~~2024) from TDCC under ~~these agreements. The Corporation may draw from~~ the ~~notes~~amended ~~in support of its daily working capital requirements~~ and, asrestated ~~such, the net effect of cash inflows and outflows under the~~ revolving loan ~~agreements is presented in the consolidated statements of cash flows as an operating activity~~agreement.

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The Corporation also has a separate revolving credit agreement with TDCC that allows the Corporation to borrow or obtain credit enhancements up to an aggregate of $2 billion. ~~TDCC~~The ~~may~~agreement, ~~demand~~which ~~repayment~~became ~~with~~effective aDecember 2, ~~30-day~~2024, ~~written~~charges ~~notice~~interest tobased ~~the~~on ~~Corporation~~alternative reference rates and matures annually, ~~subject~~with toautomatic ~~certain~~one ~~restrictions.~~year ~~The~~extensions ~~agreement~~unless ~~was~~either ~~effective~~party ~~December 2,~~terminates ~~2024,~~the ~~and~~agreement. The agreement amended and restated a prior revolving credit agreement that was scheduled to expire on December 30, 2024. ~~and~~TDCC ~~allowed~~may demand repayment with a 30-day written notice to the Corporation, subject to ~~borrow~~certain orrestrictions. ~~obtain~~At ~~credit~~December 31, ~~enhancements~~2025, upthe toCorporation anhad ~~aggregate~~a note payable to TDCC of $1100 ~~billion.~~million At(zero at December 31, 2024), and $1,~~943~~863 million ~~was~~remained available under the ~~new~~amended and restated revolving credit agreement ($~~948~~1,943 million at December 31, ~~2023 under the previous revolving credit agreement~~2024). At December 31, ~~2023~~2024, TDCC also held certain cash collateral balances from UCC related to credit enhancements under the previous agreement, which were reported as "~~Noncurrent~~Accounts ~~receivables~~receivable ~~from~~- ~~related~~Related companies" in the consolidated balance sheets and repaid to the Corporation in 2025.

~~Dividends~~The Corporation may draw from the revolving loan and credit agreements in support of its daily working capital requirements and, as such, the net effect of cash inflows and outflows under the agreements is presented in the consolidated statements of cash flows as an operating activity.

Dividends and Distributions

On a quarterly basis, the Board reviews and determines if there will be a dividend distribution to its parent company and sole shareholder, TDCC. The Board takes into consideration the level of earnings and cash flows, among other factors, in determining the amount of the dividend distribution.

The following table summarizes cash dividends declared and paid to TDCC for ~~the~~2025, ~~years ended~~ 2024, ~~2023~~ and ~~2022~~2023:

Cash Dividends Declared and Paid	~~2024~~2025		~~2023~~2024		~~2022~~2023
In millions
Cash dividends declared and paid	$	~~228~~28	$	~~512~~228	$	~~1,063~~512

The Corporation received dividends from its related company investments of $4 million during the year ended December 31, 2025, recorded in "Sundry income (expense) - net" in the consolidated statements of income.

As part of TDCC's continuing efforts to optimize its intercompany financing structure, the Corporation received a pro-rata distribution of a portion of a note receivable totaling $735 million during the year ended December 31, 2025, from Dow International Holdings Company. The distribution was recorded in “Sundry income (expense) – net” in the consolidated statements of income and was subsequently distributed to TDCC and presented as "Distribution to parent" in the consolidated statements of equity for the year ended December 31, 2025. These nontaxable transactions were executed in accordance with TDCC's intercompany cash management process. See Note 9 for additional information about the Corporation's related company investments.

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NOTE 18 - BUSINESS AND GEOGRAPHIC REGIONS

TDCC conducts its worldwide operations through global businesses and the Corporation's business activities comprise components of TDCC's global businesses rather than stand-alone operations, as the Corporation sells substantially all of its products to TDCC in order to simplify the customer interface process. The Board, acting pursuant to the authority delegated to it by its parent company, TDCC, functions as the Corporation's CODM to assess UCC's results and allocate resources for its operations. The Corporation's results are reported as a single operating segment as the consolidated statements of income are presented to the CODM without further disaggregation.

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

Geographic Region Information	United States		Asia Pacific		Rest of World		Total
In millions
2025
Sales to external customers 1	$	100	$	4	$	—	$	104
Long-lived assets	$	1,087	$	15	$	9	$	1,111
2024
Sales to external customers 1	$	119	$	1	$	—	$	120
Long-lived assets	$	1,093	$	18	$	10	$	1,121
2023
Sales to external customers 1	$	117	$	30	$	—	$	147
Long-lived assets	$	862	$	21	$	11	$	894
2022
Sales to external customers 1	$	182	$	3	$	6	$	191
Long-lived assets	$	1,149	$	22	$	11	$	1,182

1.Of total sales to external customers, sales in Malaysia were approximately 14 percent in ~~2024~~2025, 201 percent in ~~2023~~2024 and 120 percent in ~~2022~~2023, and are included in Asia Pacific.

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

None.


ITEM 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

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

Changes in Internal Control Over Financial Reporting

There were no changes in the Corporation's internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that was conducted during the quarter ended December 31, ~~2024~~2025, that materially affected or were reasonably likely to materially affect the Corporation's internal control over financial reporting.

Management's Report on Internal Control Over Financial Reporting

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

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

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

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

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

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

Management assessed the effectiveness of the Corporation's internal control over financial reporting and concluded that, as of December 31, ~~2024~~2025, such internal control is effective. In making the assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control--Integrated Framework (2013).

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


ITEM 9B. OTHER INFORMATION

None.

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Union Carbide Corporation and Subsidiaries
PART III


ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

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


ITEM 11. EXECUTIVE COMPENSATION

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


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

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


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

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


ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

The Dow Inc. Audit Committee pre-approved all auditing services and permitted non-audit services for ~~2024~~2025 (including the fees and terms thereof) to be performed for Dow Inc. and its subsidiaries (including the Corporation) by its independent auditor, subject to the de minimis exception for non-audit services described in Section 10A(i)(1)(B) of the Securities Exchange Act, any such exceptions are approved by the Dow Inc. Audit Committee prior to the completion of the audit. The Corporation's management and its Board of Directors subscribe to these policies and procedures. For the years ended December 31, ~~2024~~2025 and ~~2023~~2024, professional services were performed for the Corporation by Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu Limited, and their respective affiliates (collectively, the "Deloitte Entities").

Total fees paid for the Corporation to the Deloitte Entities were $1.54 million in ~~2024~~2025 and ~~2023~~$1.5 million in 2024. These are the aggregate of fees billed for the audit of the Corporation's annual financial statements, the reviews of the financial statements in the Quarterly Reports on Form 10-Q, statutory audits and other regulatory filings.

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Union Carbide Corporation and Subsidiaries
PART IV


ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

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

1. The Corporation's ~~2024~~2025 Consolidated Financial Statements and the Report of Independent Registered Public Accounting Firm (PCAOB ID: 34) are included in Item 8 of this Annual Report on Form 10-K.

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

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			Agreement and Plan of Merger dated as of August 3, 1999 among Union Carbide Corporation, The Dow Chemical Company and Transition Sub Inc., incorporated by reference to Exhibit 2 of the Corporation's Current Report on Form 8-K dated August 3, 1999.
2.2			Agreement for the Sale & Purchase of Shares, dated as of August 17, 2009, among Union Carbide Corporation, UCMG L.L.C. and Petroliam Nasional Berhad, incorporated by reference to Exhibit 2.1 of the Corporation's Current Report on Form 8-K dated September 30, 2009.
2.3			Sale and Purchase Agreement, dated as of December 1, 2023, between the Corporation and Dow Multinational Holding LLC, incorporated by reference to Exhibit 2.3 of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2023.
3.1			Restated Certificate of Incorporation of Union Carbide Corporation under Section 807 of the Business Corporation Law, as filed on May 13, 2008, incorporated by reference to Exhibit 3.1.4 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended June 30, 2008.
3.2			Amended and Restated Bylaws of Union Carbide Corporation, amended as of April 22, 2004, incorporated by reference to Exhibit 3.2 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended March 31, 2004.
4.1			Indenture dated as of June 1, 1995, between the Corporation and the Chase Manhattan Bank (formerly Chemical Bank), as trustee, incorporated by reference to Exhibit 4.1.2 to the Corporation's Registration Statement on Form S-3, File No. 33-660705, filed with the SEC on October 13, 1995.
4.2			The Corporation will furnish to the Commission upon request any other debt instrument referred to in Item 601(b)(4)(iii)(A) of Regulation S-K.
10.1			Amended and Restated Service Agreement, effective as of July 1, 2002, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.23 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2002.
10.1.1			Service Addendum No. 2 to the Service Agreement, effective as of August 1, 2001, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.23.2 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2002.
10.1.2			Restated Service Addendum No. 1 to the Service Agreement, effective as of February 6, 2001, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.23.3 of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2002.
10.1.3			Service Addendum No. 3 to the Amended and Restated Service Agreement, effective as of January 1, 2005, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.1.3 of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2004.
10.1.4			First Amendment to Amended and Restated Service Agreement, effective as of January 1, 2011, between the Corporation and The Dow Chemical Company incorporated by reference to Exhibit 10.1.4 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended March 31, 2011.

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Exhibit No.			Description of Exhibit
10.1.5			Service Addendum No. 4 to the Amended and Restated Service Agreement, effective as of January 1, 2019, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.1.5 of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2021.
10.2			Second Amended and Restated Sales Promotion Agreement, effective January 1, 2004, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.24 of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2003.
10.2.1			First Amendment to Second Amended and Restated Sales Promotion Agreement, effective as of March 22, 2013, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.2.1 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended March 31, 2013.
10.2.2			Second Amendment to Second Amended and Restated Sales Promotion Agreement, effective as of July 1, 2014, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.2.2 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2014.
10.4			Amended and Restated Tax Sharing Agreement, effective as of February 7, 2001, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.27 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended June 30, 2003.
10.5*			Second Amended and Restated Revolving Credit Agreement, effective as of December 2, 2024, between the Corporation as borrower and The Dow Chemical Company as lender.
10.5			Second Amended and Restated Revolving Credit Agreement, effective as of December 2, 2024, between the Corporation as borrower and The Dow Chemical Company as lender, incorporated by reference to Exhibit 10.5 of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2024.
10.7*			Third Amended and Restated Revolving Loan Agreement, effective as of December 2, 2024, between The Dow Chemical Company as borrower and the Corporation as lender.
10.7			Third Amended and Restated Revolving Loan Agreement, effective as of December 2, 2024, between The Dow Chemical Company as borrower and the Corporation as lender, incorporated by reference to Exhibit 10.7 of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2024.
10.7.1*			First Amendment to Third Amended and Restated Revolving Loan Agreement, effective as of December 4, 2025, between The Dow Chemical Company as borrower and the Corporation as lender.
10.9			Contribution Agreement effective as of December 21, 2007, among the Corporation, Dow International Holdings Company and The Dow Chemical Company, incorporated by reference to Exhibit 10.9 of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2007.
10.10			Agreement (Designation to Provide or Receive Services), effective as of November 1, 2023, between The Dow Chemical Company and the Corporation, incorporated by reference to Exhibit 10.10 of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2023.
10.10.1*			Agreement (Designation to Provide or Receive Services), effective as of November 1, 2024, between The Dow Chemical Company and the Corporation.
10.10.1			Agreement (Designation to Provide or Receive Services), effective as of November 1, 2024, between The Dow Chemical Company and the Corporation, incorporated by reference to Exhibit 10.10.1 of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2024.
10.10.2*			Agreement (Designation to Provide or Receive Services), effective as of November 1, 2025, between The Dow Chemical Company and the Corporation.
10.11			Agreement (to Receive Products and Services), effective as of November 1, 2023, between the Corporation and The Dow Chemical Company, incorporated by reference to Exhibit 10.11 of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2023.
10.12			Term Loan Agreement, effective as of December 1, 2023, between Dow Multinational Holding LLC as borrower and the Corporation as lender, incorporated by reference to Exhibit 10.12 of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2023.
10.13			Sale and Purchase Agreement, effective as of December 15, 2023, between Union Carbide Corporation and Dow Global Technologies LLC, incorporated by reference to Exhibit 10.13 of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2023.
19			Omitted pursuant to General Instruction I of Form 10-K.
21			Omitted pursuant to General Instruction I of Form 10-K.
23*			Ankura Consulting Group, LLC's Consent.
31.1*			Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*			Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*			Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*			Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS			The Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH			Inline XBRL Taxonomy Extension Schema Document.
101.CAL			Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF			Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB			Inline XBRL Taxonomy Extension Label Linkbase Document.

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Exhibit No.			Description of Exhibit
32.1*			Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*			Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS			The Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH			Inline XBRL Taxonomy Extension Schema Document.
101.CAL			Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF			Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB			Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE			Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104			Cover Page Interactive Data File. The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

* Filed herewith

The Corporation will provide a copy of any exhibit upon receipt of a written request for the particular exhibit or exhibits desired. All requests should be addressed to the Corporation's principal executive offices.


ITEM 16. FORM 10-K SUMMARY

Not applicable.

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Union Carbide Corporation and Subsidiaries
Trademark Listing

The following trademarks or servicemarks of The Dow Chemical Company or an affiliated company of Dow appear in this report:

CARBOWAX, FLEXOMER, LP OXO, METEOR, REDI-LINK, SENTRY, SI-LINK, TERGITOL, TRITON, TUFLIN, UCAR, UCARTHERM, UCON, UNIGARD, UNIPURGE, UNIVAL

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

® ℠ ™ Trademark of The Dow Chemical Company ("TDCC") or an affiliated company, except as otherwise specified.

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Union Carbide Corporation and Subsidiaries
Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Annual Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized, on February 43, ~~2025~~2026.


UNION CARBIDE CORPORATION


/s/ ANDREA L. DOMINOWSKI
Andrea L. Dominowski, Controller and Vice President of Controllers The Dow Chemical Company (Authorized Representative of Union Carbide Corporation)

Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been signed below on February 43, ~~2025~~2026, by the following persons on behalf of the registrant and in the capacities indicated:

/s/ DENISE DELAUNE /s/ MARSHALL A. HEINBERG Denise DeLaune, Director, President and Chief Executive Officer (Principal Executive Officer) Marshall A. Heinberg, Director /s/ ANDREA L. DOMINOWSKI /s/ ~~WENDELL~~MITCHELL K.WISNIEWSKI ~~TERRY~~ Andrea L. Dominowski, Controller and Vice President of Controllers The Dow Chemical Company(Authorized Representative of Union Carbide Corporation) ~~Wendell~~Mitchell ~~K. Terry~~Wisniewski, Director, Vice President, Treasurer and Chief Financial Officer (Principal Financial Officer) ~~/s/ MARSHALL A. HEINBERG /s/ FERNANDO SIGNORINI Marshall A. Heinberg, Director Fernando Signorini, Director, President and Chief Executive Officer (Principal Executive Officer)~~

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Union Carbide Corporation and Subsidiaries

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

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

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