10-K
UNION CARBIDE CORP /NEW/ filed this Form 10-K on 02/15/2018
Entire Document
 

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

In millions
2017
2016
2015
Depreciation expense
$
176

$
166

$
160

Capitalized interest
$
10

$
13

$
10



NOTE 10 - NONCONSOLIDATED AFFILIATE
The Corporation's investment in Asian Acetyls Co., Ltd. ("ASACCO"), a nonconsolidated affiliate accounted for by the equity method, was zero at December 31, 2017 and $14 million at December 31, 2016. Dividends received from ASACCO were zero in 2017, $1 million in 2016 and $2 million in 2015. Undistributed earnings of ASACCO included in retained earnings were zero at December 31, 2017 and $9 million at December 31, 2016. The nonconsolidated affiliate was a privately held company; therefore, a quoted market price was not available.

On March 16, 2017, UCC entered into a share sale and purchase agreement to sell its ownership interest in the nonconsolidated affiliate. ASACCO agreed to purchase all of the shares of registered common stock owned by UCC. On April 24, 2017, the sale was completed for $22 million. In the second quarter of 2017, the Corporation recorded a pretax gain of $4 million on the sale, included in "Sundry income (expense) - net" in the consolidated statements of income.


NOTE 11 - INVESTMENTS IN RELATED COMPANIES
The Corporation's ownership interests in related companies at December 31, 2017 and 2016 were as follows:

Investments in Related Companies at Dec 31
Ownership Interest
Investment Balance
In millions
2017
2016
2017
2016
Dow International Holdings Company 1
12
%
15
%
$
633

$
633

Dow Quimica Argentina S.A. 2
%
23
%


Dow Quimica Mexicana S.A. de C.V.
15
%
15
%
5

5

Other
%
%
1

1

Total Investments in Related Companies
 
 
$
639

$
639

1. Ownership interest changed as a result of stock transfers and redemptions in Dow International Holdings Company by the parent company, Dow.
2. UCC transferred its shares in Dow Quimica Argentina S.A. ("DQA") to PBB Polisur S.R.L. and Dow Investment Argentina S.A., subsidiaries of Dow, in exchange for $2 million in cash and was included in "Sundry income (expense) - net" in the consolidated statements of income. In 2013, UCC's investment in DQA was fully impaired.


NOTE 12 - INTANGIBLE ASSETS
The following table provides information regarding the Corporation's intangible assets:

Intangible Assets at Dec 31
2017
2016
In millions
Gross Carrying Amount
Accum Amort
Net
Gross Carrying Amount
Accum Amort
Net
Intangible assets with finite lives:
 
 
 
 
 
 
Licenses and developed technology
$
33

$
(33
)
$

$
33

$
(33
)
$

Software
74

(49
)
25

70

(45
)
25

Total intangible assets
$
107

$
(82
)
$
25

$
103

$
(78
)
$
25


The following table provides information regarding amortization expense:

Amortization Expense
 
 
 
In millions
2017
2016
2015
Software 1
$
5

$
4

$
2

1. Included in “Cost of sales” in the consolidated statements of income.

35