NONCONSOLIDATED AFFILIATES (Notes)

3 Months Ended

Mar. 31, 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, are shown in the following table:


Investments in Nonconsolidated Affiliates	Mar 31, 2021		Dec 31, 2020
In millions	Mar 31, 2021		Dec 31, 2020
Investment in nonconsolidated affiliates	$	1,620	$	1,327
Other noncurrent obligations	(153)		(169)
Net investment in nonconsolidated affiliates	$	1,467	$	1,158

In the first quarter of 2021, The Kuwait Styrene Company K.S.C.C. paid a dividend of $25 million ($42 million in the first quarter of 2020), reflected in "Earnings of nonconsolidated affiliates less than (in excess of) dividends received" in the consolidated statements of cash flows. In the first quarter of 2021, EQUATE Petrochemical Company K.S.C.C. (“EQUATE”) and The Kuwait Olefins Company K.S.C.C. paid dividends of $79 million and $74 million, respectively. At March 31, 2021, the Company had a negative investment balance in EQUATE of $153 million (negative $147 million at December 31, 2020), classified as "Other noncurrent obligations" in the consolidated balance sheets.

At March 31, 2021, the Company had an investment balance in Sadara Chemical Company (“Sadara”) of $306 million classified as “Investment in nonconsolidated affiliates” (negative $22 million at December 31, 2020 classified as “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. See Notes 12 and 19 for additional information on the guarantee.

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 will begin in mid-2021 and will be effectuated over the next five years.