VARIABLE INTEREST ENTITIES

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES

A summary of the Company's variable interest entities ("VIEs") can be found in Note 25 to the Consolidated Financial Statements included in the combined Dow Inc. and TDCC Annual Report on Form 10-K for the year ended December 31, 2019.

Assets and Liabilities of Consolidated VIEs

The Company's consolidated financial statements include the assets, liabilities and results of operations of VIEs for which the Company is the primary beneficiary. The other equity holders’ interests are reflected in “Net income attributable to noncontrolling interests” in the consolidated statements of income and "Noncontrolling interests" in the consolidated balance sheets.

The following table summarizes the carrying amounts of these entities' assets and liabilities included in the Company’s consolidated balance sheets at September 30, 2020 and December 31, 2019:

Assets and Liabilities of Consolidated VIEs	Sep 30, 2020		Dec 31, 2019
In millions
Cash and cash equivalents	$	53	$	37
Other current assets	42		51
Net property	230		330
Other noncurrent assets	16		18
Total assets 1	$	341	$	436
Current liabilities	$	68	$	141
Long-term debt	19		34
Other noncurrent obligations	19		21
Total liabilities 2	$	106	$	196

1.All assets were restricted at September 30, 2020 and December 31, 2019.

2.All liabilities were nonrecourse at September 30, 2020 and December 31, 2019.

Amounts presented in the consolidated balance sheets and the table above as restricted assets or nonrecourse obligations relating to consolidated VIEs at September 30, 2020 and December 31, 2019 are adjusted for intercompany eliminations and parental guarantees.

The Company held variable interests in a cogeneration facility in Brazil that provided power to the Company's bio-ethanol manufacturing facility. The Company's variable interests were the result of a tolling arrangement where it provided fuel to the entity and purchased a majority of the cogeneration facility's output on terms that ensured a return to the entity's equity holders. On September 29, 2020, the Company divested its bio-ethanol manufacturing facility and is no longer a party to the tolling arrangement with the cogeneration facility.

Nonconsolidated VIEs

The following table summarizes the carrying amounts of assets included in the consolidated balance sheets at September 30, 2020 and December 31, 2019, related to variable interests in joint ventures or entities for which the Company is not the primary beneficiary. The Company's maximum exposure to loss is the same as the carrying amounts.

Carrying Amounts of Assets Related to Nonconsolidated VIEs		Sep 30, 2020		Dec 31, 2019
In millions	Description of asset
Silicon joint ventures	Equity method investments 1	$	103	$	100

1.Classified as "Investment in nonconsolidated affiliates" in the consolidated balance sheets.