DOW CHEMICAL CO /DE/

NOTE 19 –FAIR VALUE MEASUREMENTS

A summary of the Company's recurring and nonrecurring fair value measurements can be found in Note 22 to the Consolidated Financial Statements included in the 2025 10-K.

Fair Value Measurements on a Recurring Basis

The following table summarizes the bases used to measure certain assets and liabilities at fair value on a recurring basis:

1. The Company's held-to-maturity securities primarily relate to treasury bills and time deposits. At September 30, 2026, $772 million is included in "Cash and cash equivalents" ($555 million at December 31, 2025) and $52 million is included in "Other current assets" ($69 million at December 31, 2025) in the consolidated balance sheets.

2. The Company’s investments in marketable securities are included in “Other current assets” in the consolidated balance sheets.

3. The Company’s investments in debt securities, which are primarily available-for-sale, and equity securities are included in “Other investments” in the consolidated balance sheets.

4. U.S. Treasury obligations, U.S. agency obligations, U.S. agency mortgage-backed securities and other municipalities’ obligations.

5. Equity securities with a readily determinable fair value.

6. See Note 18 for classification of derivatives in the consolidated balance sheets.

7. Cost includes fair value hedge adjustment losses of $22 million at September 30, 2026 and gains of $27 million at December 31, 2025 on $5,978 million of debt at September 30, 2026 and $5,538 million of debt at December 31, 2025.

8. Estimated liability for TDCC's guarantee of Sadara's debt, of which $500 million is included in "Other noncurrent obligations" at September 30, 2026 ($132 million at December 31, 2025) andzero is included in "Accrued and other current liabilities" at September 30, 2026 ($80 million at December 31, 2025) in the consolidated balance sheets.

Cost approximates fair value for all other financial instruments.

For equity securities calculated at net asset value per share (or its equivalent), the Company had $102 million in private equity and $11 million in real estate at September 30, 2026 ($109 million in private equity and $13 million in real estate at December 31, 2025). There are no redemption restrictions and the unfunded commitments on these investments were $69 million at September 30, 2026 and $65 million at December 31, 2025.

For assets classified as Level 3 measurements, fair value is based on significant unobservable inputs including assumptions where there is little, if any, market activity. The level 3 asset values represent the fair value of an investment in a corporate bond, accounted for as a debt security.

For liabilities classified as Level 3 measurements, fair value is based on significant unobservable inputs including assumptions where there is little, if any, market activity. The fair value of the Company’s accrued liability related to the guarantee of Sadara’s project financing debt is in proportion to the Company’s 35 percent ownership interest in Sadara. The estimated fair value of the project financing debt guarantee was calculated using a "with" and "without" method. The fair value of the debt was calculated "with" the guarantee less the fair value of the debt "without" the guarantee. The "with" and "without" values were calculated using a discounted cash flow method based on contractual cash flows as well as projected prepayments made on the debt by Sadara. During the three months ended March 31, 2026, the fair value of the project financing debt guarantee liability increased by $298 million, which was included in “Equity in earnings (losses) of nonconsolidated affiliates” in the consolidated statements of income. The increase in fair value was primarily attributable to adverse business conditions impacting Sadara’s operations, including the ongoing conflicts in the Middle East. See Note 12 for further information on guarantees.