乐天堂fun88(中国区)官方网站 Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Note 8 - Variable Interest Entities

Note 8 - Variable Interest Entities

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

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Variable Interest Entity Disclosure [Text Block]

8. VARIABLE INTEREST ENTITIES

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We evaluate our investments and transactions to identify variable interest entities for which we are the primary beneficiary. We hold a variable interest in the following joint ventures for which we are the primary beneficiary:

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鈼�

Rubicon听LLC is our 50%-owned joint venture with Lanxess that manufactures products for our Polyurethanes and Performance Products segments. The structure of the joint venture is such that the total equity investment at risk is not sufficient to permit the joint venture to finance its activities without additional financial support. By virtue of the operating agreement with this joint venture, we purchase a majority of the output, absorb a majority of the operating costs and provide a majority of the additional funding.

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AAC is our 50%-owned joint venture with Zamil group that manufactures products for our Performance Products segment. As required in the operating agreement governing this joint venture, we purchase all of AAC鈥檚 production and sell it to our customers. Substantially all of the joint venture鈥檚 activities are conducted on our behalf.

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Sasol-乐天堂fun88(中国区)官方网站 was our 50%-owned joint venture with Sasol that owned and operated a maleic anhydride facility in Moers, Germany. On September 30, 2019, we acquired the 50% noncontrolling interest that we did not own in the Sasol-乐天堂fun88(中国区)官方网站. As such, as of September 30, 2019, Sasol-乐天堂fun88(中国区)官方网站 became our wholly-owned subsidiary and听was no longer accounted for as a variable interest entity.听

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During the year ended December 31, 2020, there were no changes in our variable interest entities.

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Creditors of our variable interest entities have no recourse to our general credit. See 鈥淣ote听15. Debt鈥擠irect and Subsidiary Debt.鈥� As the primary beneficiary of these variable interest entities at December听31, 2020, the joint ventures鈥� assets, liabilities and results of operations are included in our consolidated financial statements.

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The following table summarizes the carrying amount of our variable interest entities鈥� assets and liabilities included in our consolidated balance sheets as of December 31, 2020 and 2019 (dollars in millions):

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听	听	*December 31,*						听
听	听	*2020*		听	听	*2019*		听
Current assets	听	$	49	听	听	$	50	听
Property, plant and equipment, net	听	听	167	听	听	听	180	听
Operating lease right-of-use assets	听	听	22	听	听	听	16	听
Other noncurrent assets	听	听	138	听	听	听	132	听
Deferred income taxes	听	听	30	听	听	听	30	听
Total assets	听	$	406	听	听	$	408	听
Current liabilities	听	$	183	听	听	$	151	听
Long-term debt	听	听	3	听	听	听	29	听
Noncurrent operating lease liabilities	听	听	17	听	听	听	11	听
Other noncurrent liabilities	听	听	82	听	听	听	87	听
Deferred income taxes	听	听	1	听	听	听	鈥�	听
Total liabilities	听	$	286	听	听	$	278	听

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The revenues, income from continuing operations before income taxes and net cash provided by operating activities for our variable interest entities are as follows (dollars in millions):

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Year ended December 31,

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2020

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2019⁽¹⁾

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2018

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Revenues

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鈥�

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154

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Income from continuing operations before income taxes

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Net cash provided by operating activities

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(1)

As of September 30, 2019, Sasol-乐天堂fun88(中国区)官方网站 was no longer accounted for as a variable interest entity. Therefore, this financial data only includes information for Sasol-乐天堂fun88(中国区)官方网站 applicable to the period from January 1, 2019 through September 30, 2019.

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