Dow Chemical 2014 Annual Report Download - page 108

84
Sales to and purchases from nonconsolidated affiliates were not material to the consolidated financial statements. Balances due
to or due from nonconsolidated affiliates at December 31, 2014 and 2013 are as follows:
Balances Due To or Due From Nonconsolidated Affiliates at December 31
In millions 2014 2013
Accounts and notes receivable - other $ 511 $ 512
Noncurrent receivables (1) 212 5
Total assets $ 723 $ 517
Notes payable $ 189 $ 137
Accounts payable - other 274 221
Total current liabilities $ 463 $ 358
(1) Included in "Noncurrent receivables" is a $193 million note receivable from Sadara that is
expected to be converted into equity in the first quarter of 2015.
Principal Nonconsolidated Affiliates
Dow had an ownership interest in 59 nonconsolidated affiliates at December 31, 2014 (63 at December 31, 2013). The
Company's principal nonconsolidated affiliates and its ownership interest (direct and indirect) for each at December 31, 2014,
2013 and 2012 are as follows:
Principal Nonconsolidated Affiliates at December 31 Ownership Interest
2014 2013 2012
Dow Corning Corporation 50% 50% 50%
EQUATE Petrochemical Company K.S.C. (1) 42.5% 42.5% 42.5%
The Kuwait Olefins Company K.S.C. (1) 42.5% 42.5% 42.5%
The Kuwait Styrene Company K.S.C. (1) (2) 42.5% N/A N/A
Map Ta Phut Olefins Company Limited (3) 32.77% 32.77% 32.77%
MEGlobal (1) 50% 50% 50%
Sadara Chemical Company 35% 35% 35%
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 (4) 50% 50% 50%
(1) In the fourth quarter of 2014, the Company announced it will reconfigure and reduce its equity base in
EQUATE Petrochemical Company K.S.C., The Kuwait Olefins Company K.S.C., The Kuwait Styrene
Company K.S.C. and MEGlobal through a divestment of a portion of the Company’s interests. Dow
expects such transaction(s) to be completed by mid-2016.
(2) The Kuwait Styrene Company K.S.C. was added as a principal nonconsolidated affiliate in the fourth
quarter of 2014.
(3) The Company's effective ownership of Map Ta Phut Olefins Company Limited 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 and Siam Synthetic Latex Company Limited.
(4) On October 2, 2014, the Company reached a definitive agreement with ExxonMobil Chemical Company
to acquire the remaining 50 percent ownership interest in Univation Technologies, LLC ("Univation"),
which will result in Univation becoming a wholly owned subsidiary of Dow. The transaction is expected
to close in the first half of 2015, pending regulatory approvals.
The Company’s investment in its principal nonconsolidated affiliates was $3,487 million at December 31, 2014 and
$3,625 million at December 31, 2013. Equity earnings from these companies were $845 million in 2014, $951 million in 2013
and $479 million in 2012. Equity earnings from principal nonconsolidated affiliates decreased in 2014 compared with 2013,
primarily due to lower equity earnings at EQUATE Petrochemical Company K.S.C., The Kuwait Styrene Company K.S.C. and
MEGlobal as well as increased equity losses from Sadara which were partially offset by increased equity earnings from Dow
Corning. In 2014, Dow Corning's equity earnings were unfavorably impacted by an impairment charge related to the
abandonment of a polycrystalline silicon plant expansion in Clarksville, Tennessee, which was partially offset by a reduction to
its implant liability reserve. In 2012, Dow Corning's equity earnings were negatively impacted by asset impairment and
restructuring charges.