Dow Chemical 2012 Annual Report Download - page 113

87
Principal Nonconsolidated Affiliates
Dow had an ownership interest in 67 nonconsolidated affiliates at December 31, 2012 (69 at December 31, 2011). The
Company's principal nonconsolidated affiliates and its ownership interest (direct and indirect) for each at December 31, 2012,
2011 and 2010 are as follows:
Principal Nonconsolidated Affiliates at December 31 Ownership Interest
2012 2011 2010
Compañía Mega S.A. (1) N/A 28% 28%
Dow Corning Corporation 50% 50% 50%
EQUATE Petrochemical Company K.S.C. 42.5% 42.5% 42.5%
Equipolymers (2) — — 50%
The Kuwait Olefins Company K.S.C. 42.5% 42.5% 42.5%
Map Ta Phut Olefins Company Limited (3) 33% N/A N/A
MEGlobal (2) 50% 50% 50%
Sadara Chemical Company (4) 35% N/A N/A
The SCG-Dow Group:
Siam Polyethylene Company Limited 50% 50% 50%
Siam Polystyrene Company Limited 50% 50% 50%
Siam Styrene Monomer Co., Ltd. 50% 50% 50%
Siam Synthetic Latex Company Limited 50% 50% 50%
Univation Technologies, LLC 50% 50% 50%
(1) Compañia Mega S.A. is no longer considered a principal nonconsolidated affiliate as of the fourth quarter
of 2012. The Company continues to maintain a 28 percent equity interest in this nonconsolidated affiliate.
(2) On July 1, 2011, Equipolymers was merged into MEGlobal.
(3) Map Ta Phut Olefins Company Limited was added as a principal nonconsolidated affiliate in the fourth
quarter of 2012. The Company's effective ownership of Map Ta Phut Olefins Company Limited is 33
percent, of which the Company directly owns 20 percent and indirectly owns 13 percent through its equity
interest in Siam Polyethylene Company Limited and Siam Synthetic Latex Company Limited.
(4) Sadara Chemical Company became a principal nonconsolidated affiliate in the fourth quarter of 2012.
The Company’s investment in its principal nonconsolidated affiliates was $3,243 million at December 31, 2012 and
$2,546 million at December 31, 2011. Equity earnings from these companies were $479 million in 2012, $1,132 million in
2011 and $1,032 million in 2010. Equity earnings from principal nonconsolidated affiliates decreased in 2012 compared with
2011, primarily due to a decline in earnings at Dow Corning, attributed to ongoing weakness in the silicon value chain, as well
as equity losses from Sadara. Equity earnings from Dow Corning were also negatively impacted in 2012 by asset impairment
and restructuring charges.
The summarized financial information that follows represents the combined accounts (at 100 percent) of the principal
nonconsolidated affiliates.
Summarized Balance Sheet Information at December 31
In millions 2012 (1) 2011 (2)(3)
Current assets $ 8,841 $ 8,823
Noncurrent assets 20,109 15,494
Total assets $ 28,950 $ 24,317
Current liabilities $ 6,903 $ 4,376
Noncurrent liabilities 12,788 12,573
Total liabilities $ 19,691 $ 16,949
Noncontrolling interests $ 708 $ 789
(1) The summarized balance sheet information for 2012 does not include the results
for Compañia Mega S.A which is no longer considered a principal
nonconsolidated affiliate as of the fourth quarter of 2012.
(2) The summarized balance sheet information for 2011 does not include the results
for Map Ta Phut Olefins Company Limited and Sadara Chemical Company as
these entities became principal nonconsolidated affiliates in 2012.
(3) The summarized balance sheet information for 2011 was updated in 2012 due to
a prior period reclassification of noncurrent deferred tax assets and liabilities
made by a principal nonconsolidated affiliate.