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 at Dec 31	20221		20211
In millions	20221		20211
Investment in nonconsolidated affiliates	$	1,589	$	2,045
Other noncurrent obligations	(144)		—
Net investment in nonconsolidated affiliates	$	1,445	$	2,045

1.The carrying amount of the Company’s investments in nonconsolidated affiliates at December 31, 2022 and 2021 was $55 million less than its share of the investees’ net assets, exclusive of additional differences relating to Sadara, EQUATE Petrochemical Company K.S.C.C. ("EQUATE") and AgroFresh Solutions Inc. ("AFSI"), which are discussed separately in the disclosures that follow.

In 2011, the Company and Saudi Arabian Oil Company formed Sadara - a joint venture between the two companies that subsequently constructed and now operates a world-scale, fully integrated chemicals complex in Jubail Industrial City, Kingdom of Saudi Arabia. The Company has a 35 percent equity interest in this joint venture and has been, and continues to be, responsible for marketing the majority of Sadara’s products through the Company’s established sales channels. In 2021, Dow and the Saudi Arabian Oil Company agreed to and began transitioning the marketing rights and responsibilities for Sadara’s finished products to levels more consistent with each partner’s equity ownership, which is being implemented through 2026. This transition will not impact equity earnings, but is expected to reduce the Company's sales of Sadara products over the five year period.

The Company’s investment in Sadara was $1,464 million less than Dow’s proportionate share of the carrying value of the underlying net assets held by Sadara at December 31, 2022 ($1,541 million less at December 31, 2021). This basis difference, which resulted from the 2019 impairment of the investment, is primarily attributed to the long-lived assets of Sadara and is being amortized over the remaining useful lives of the assets. At December 31, 2022, the Company had an investment balance in Sadara of $322 million ($416 million at December 31, 2021) included in “Investment in nonconsolidated affiliates” in the Company’s consolidated balance sheets. See Note 15 for additional information related to guarantees.

In 2020, the Company loaned $333 million to Sadara that was accounted for as in substance common stock and classified as "Investment in nonconsolidated affiliates" in the Company's consolidated balance sheets. At December 31, 2022 and 2021, the Company's note receivable with Sadara was zero.

At December 31, 2022, the Company had a negative investment balance in EQUATE of $144 million classified as "Other noncurrent obligations" ($115 million at December 31, 2021 included in “Investment in nonconsolidated affiliates”) in the consolidated balance sheets. The Company's investment in EQUATE was $447 million less than the Company's proportionate share of EQUATE's underlying net assets at December 31, 2022 ($458 million less at December 31, 2021), which represents the difference between the fair values of certain MEGlobal assets acquired by EQUATE and the Company's related valuation on a U.S. GAAP basis. A basis difference of $126 million at December 31, 2022 ($140 million at December 31, 2021) is being amortized over the remaining useful lives of the assets and the remainder is considered a permanent difference.

At December 31, 2022 and 2021, the Company had an investment balance in AFSI of zero. At December 31, 2022, the Company's investment in AFSI was $72 million less than the Company's proportionate share of AFSI's underlying net assets ($96 million less at December 31, 2021). This amount primarily relates to an other-than-temporary decline in the Company's investment in AFSI. At December 31, 2022 and 2021, the Company held a 40 percent ownership interest in AFSI.

The Company has service agreements with certain nonconsolidated affiliates, including contracts to manage the operations of manufacturing sites and the construction of new facilities; licensing and technology agreements; and marketing, sales, purchase, lease and sublease agreements.

The Company sells excess ethylene glycol produced at manufacturing facilities in the United States and Europe to MEGlobal, a subsidiary of EQUATE. The Company also sells ethylene to MEGlobal as a raw material for its ethylene glycol plants in Canada. Sales of these products to MEGlobal represented 1 percent of total net sales in 2022, 2021 and 2020. Sales of ethylene to MEGlobal are reflected in the Packaging & Specialty Plastics segment and represented 2 percent of the segment's sales in 2022, 2021 and 2020. Sales of ethylene glycol to MEGlobal are reflected in the Industrial Intermediates & Infrastructure segment and represented 1 percent of the segment's sales in 2022, 2021 and 2020.

The Company is responsible for marketing the majority of Sadara products outside of the Middle East zone through the Company’s established sales channels. Under this arrangement, the Company purchases and sells Sadara products for a marketing fee. Purchases of Sadara products represented 7 percent of "Cost of sales" in 2022 (9 percent in 2021 and 8 percent in 2020).

The Company purchases products from The SCG-Dow Group, primarily for marketing and distribution in Asia Pacific. Purchases of products from The SCG-Dow Group represented 3 percent of "Cost of sales" in 2022, 2021 and 2020.


Balances Due To or Due From Nonconsolidated Affiliates at Dec 31	2022		2021
In millions
Accounts and notes receivable - Other	$	307	$	357



Accounts payable - Other	$	1,083	$	1,611

The Company had an ownership interest in 37 nonconsolidated affiliates at December 31, 2022 (37 at December 31, 2021). The Company's principal nonconsolidated affiliates and its ownership interest (direct and indirect) for each at December 31, 2022, 2021 and 2020 are as follows:


Principal Nonconsolidated Affiliates at Dec 31	Country	Ownership Interest
		2022		2021		2020
EQUATE Petrochemical Company K.S.C.C.	Kuwait	42.5	%	42.5	%	42.5	%
The Kuwait Olefins Company K.S.C.C.	Kuwait	42.5	%	42.5	%	42.5	%
The Kuwait Styrene Company K.S.C.C.	Kuwait	42.5	%	42.5	%	42.5	%
Map Ta Phut Olefins Company Limited 1	Thailand	32.77	%	32.77	%	32.77	%

Sadara Chemical Company	Saudi Arabia	35	%	35	%	35	%
The SCG-Dow Group:
Siam Polyethylene Company Limited	Thailand	50	%	50	%	50	%
Siam Polystyrene Company Limited	Thailand	50	%	50	%	50	%
Siam Styrene Monomer Company Limited	Thailand	50	%	50	%	50	%
Siam Synthetic Latex Company Limited	Thailand	50	%	50	%	50	%

1.The Company's effective ownership of Map Ta Phut Olefins Company Limited ("Map Ta Phut") is 32.77 percent, of which the Company directly owns 20.27 percent and indirectly owns 12.5 percent through its equity interest in Siam Polyethylene Company Limited.


Investment in Principal Nonconsolidated Affiliates at Dec 31	2022		2021
In millions	2022		2021
Investment in nonconsolidated affiliates	$	1,116	$	1,621
Other noncurrent obligations	(144)		—
Net investment in principal nonconsolidated affiliates	$	972	$	1,621


Equity in Earnings (Losses) of Principal Nonconsolidated Affiliates	2022		2021		2020
In millions	2022		2021		2020
Equity in earnings (losses) of principal nonconsolidated affiliates	$	192	$	918	$	(16)


Summarized Balance Sheet Information at Dec 31	2022		2021
In millions	2022		2021
Current assets	$	6,241	$	8,158
Noncurrent assets	22,526		23,681
Total assets	$	28,767	$	31,839
Current liabilities	$	3,754	$	3,990
Noncurrent liabilities	18,999		20,039
Total liabilities	$	22,753	$	24,029
Noncontrolling interests	$	223	$	174


Summarized Income Statement Information 1	2022		2021		2020
In millions	2022		2021		2020
Sales	$	14,026	$	14,969	$	9,470
Gross profit	$	1,246	$	3,219	$	619
Income (loss), net of tax	$	(91)	$	2,013	$	(461)

1.The results in this table include purchase and sale activity between certain principal nonconsolidated affiliates and the Company, as previously discussed in the "Transactions with Nonconsolidated Affiliates" section.