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	2023 1		2022 1
In millions	2023 1		2022 1
Investment in nonconsolidated affiliates	$	1,267	$	1,589
Other noncurrent obligations	(229)		(144)
Net investment in nonconsolidated affiliates	$	1,038	$	1,445

1.The carrying amount of the Company’s investments in nonconsolidated affiliates at December 31, 2023 and 2022, 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 $1,387 million less than Dow’s proportionate share of the carrying value of the underlying net assets held by Sadara at December 31, 2023 ($1,464 million less at December 31, 2022). 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, 2023, the Company had a negative investment balance in Sadara of $128 million classified as "Other noncurrent obligations" ($322 million at December 31, 2022 included in “Investment in nonconsolidated affiliates”) in the Company’s consolidated balance sheets. See Note 14 for additional information related to guarantees.

At December 31, 2023, the Company had a negative investment balance in EQUATE of $101 million classified as "Other noncurrent obligations" ($144 million at December 31, 2022) in the consolidated balance sheets. The Company's investment in EQUATE was $432 million less than the Company's proportionate share of EQUATE's underlying net assets at December 31, 2023 ($447 million less at December 31, 2022), 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 $111 million at December 31, 2023 ($126 million at December 31, 2022), is being amortized over the remaining useful lives of the assets and the remainder is considered a permanent difference.

At March 31, 2023, the Company's previously impaired investment in AFSI was converted to cash upon completion of the AFSI shareholder-approved go-private transaction. The Company had an investment balance in AFSI of zero at December 31, 2023 and 2022. 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. At December 31, 2023, the Company held no ownership interest in AFSI (40 percent ownership interest in AFSI at December 31, 2022).

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 2023, 2022 and 2021. Sales of ethylene to MEGlobal are reflected in the Packaging & Specialty Plastics segment and represented 2 percent of the segment's sales in 2023, 2022 and 2021. Sales of ethylene glycol to MEGlobal are reflected in the Industrial Intermediates & Infrastructure segment and represented 1 percent of the segment's sales in 2023, 2022 and 2021.

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 6 percent of "Cost of sales" in 2023 (7 percent in 2022 and 9 percent in 2021).

The Company purchases products from The SCGC-Dow Group, primarily for marketing and distribution in Asia Pacific. Purchases of products from The SCGC-Dow Group represented 3 percent of "Cost of sales" in 2023, 2022 and 2021.


Balances Due To or Due From Nonconsolidated Affiliates at Dec 31	2023		2022
In millions
Accounts and notes receivable - Other	$	189	$	307



Accounts payable - Other	$	823	$	1,083

The Company had an ownership interest in 38 nonconsolidated affiliates at December 31, 2023 (37 at December 31, 2022). The Company's principal nonconsolidated affiliates and its ownership interest (direct and indirect) for each at December 31, 2023, 2022 and 2021, are as follows:


Principal Nonconsolidated Affiliates at Dec 31	Country	Ownership Interest
		2023		2022		2021
EQUATE Petrochemical Company K.S.C.C.	Kuwait	42.50	%	42.50	%	42.50	%
The Kuwait Olefins Company K.S.C.C.	Kuwait	42.50	%	42.50	%	42.50	%
The Kuwait Styrene Company K.S.C.C.	Kuwait	42.50	%	42.50	%	42.50	%
Map Ta Phut Olefins Company Limited 1	Thailand	32.77	%	32.77	%	32.77	%

Sadara Chemical Company	Saudi Arabia	35.00	%	35.00	%	35.00	%
The SCGC-Dow Group:
Siam Polyethylene Company Limited	Thailand	50.00	%	50.00	%	50.00	%
Siam Polystyrene Company Limited	Thailand	50.00	%	50.00	%	50.00	%
Siam Styrene Monomer Company Limited	Thailand	50.00	%	50.00	%	50.00	%
Siam Synthetic Latex Company Limited	Thailand	50.00	%	50.00	%	50.00	%

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 12.50 percent through its equity interest in Siam Polyethylene Company Limited.


Investment in Principal Nonconsolidated Affiliates at Dec 31	2023		2022
In millions	2023		2022
Investment in principal nonconsolidated affiliates	$	754	$	1,116
Other noncurrent obligations	(229)		(144)
Net investment in principal nonconsolidated affiliates	$	525	$	972


Equity in Earnings (Losses) of Principal Nonconsolidated Affiliates	2023		2022		2021
In millions	2023		2022		2021
Equity in earnings (losses) of principal nonconsolidated affiliates	$	(192)	$	192	$	918


Summarized Balance Sheet Information at Dec 31	2023		2022
In millions	2023		2022
Current assets	$	4,904	$	6,241
Noncurrent assets	21,832		22,526
Total assets	$	26,736	$	28,767
Current liabilities	$	3,490	$	3,754
Noncurrent liabilities	18,794		18,999
Total liabilities	$	22,284	$	22,753
Noncontrolling interests	$	157	$	223


Summarized Income Statement Information 1	2023		2022		2021
In millions	2023		2022		2021
Sales	$	11,102	$	14,026	$	14,969
Gross profit	$	289	$	1,246	$	3,219
Income (loss), net of tax	$	(1,053)	$	(91)	$	2,013

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.