NONCONSOLIDATED AFFILIATES (Notes)

9 Months Ended

Sep. 30, 2021

Equity Method Investments and Joint Ventures [Abstract]

For additional information on the Company’s nonconsolidated affiliates, see Note 12 to the Consolidated Financial Statements included in the 2020 10-K.

The Company's investments in companies accounted for using the equity method ("nonconsolidated affiliates"), by classification in the consolidated balance sheets, and dividends received from nonconsolidated affiliates are shown in the following tables:


Investments in Nonconsolidated Affiliates	Sep 30, 2021		Dec 31, 2020
In millions	Sep 30, 2021		Dec 31, 2020
Investment in nonconsolidated affiliates	$	1,910	$	1,327
Other noncurrent obligations	—		(169)
Net investment in nonconsolidated affiliates	$	1,910	$	1,158


Dividends Received from Nonconsolidated Affiliates	Nine Months Ended
In millions	Sep 30, 2021		Sep 30, 2020
Dividends from nonconsolidated affiliates 1	$	232	$	391

1.Included in "Earnings of nonconsolidated affiliates less than (in excess of) dividends received" in the consolidated statements of cash flows.

At September 30, 2021, the Company had an investment balance in EQUATE Petrochemical Company K.S.C.C. of $18 million included in "Investment in nonconsolidated affiliates" (negative $147 million at December 31, 2020 included in "Other noncurrent obligations") in the consolidated balance sheets.

At September 30, 2021, the Company had an investment balance in Sadara Chemical Company (“Sadara”) of $412 million included in “Investment in nonconsolidated affiliates” (negative $22 million at December 31, 2020 included in “Other noncurrent obligations”) in the consolidated balance sheets. In the first quarter of 2021, the Company entered into a new guarantee in conjunction with Sadara’s debt re-profiling activities. In the second quarter of 2021, as a part of Sadara's debt re-profiling activities, Sadara established a new revolving credit facility guaranteed by Dow, which will be used to fund Dow’s pro-rata share of any potential shortfall during the grace period. The Company does not expect to be required to perform under the guarantee. See Notes 12 and 19 for additional information on the guarantees.

Transactions with Nonconsolidated Affiliates

The Company is currently responsible for marketing the majority of Sadara products outside of the Middle East zone through the Company’s established sales channels. Under this arrangement, the Company purchases and sells Sadara products for a marketing fee. In March 2021, Dow and the Saudi Arabian Oil Company agreed to transition the marketing rights and responsibilities for Sadara’s finished products to levels more consistent with each partner’s equity ownership. This transition began in July 2021 and is being implemented over the next five years.