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Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Variable Interest Entities

v3.21.2
Note 6 - Variable Interest Entities
9 Months Ended
Sep. 30, 2021
Notes to Financial Statements Ìý
Variable Interest Entity Disclosure [Text Block]

6. 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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RubiconÌýLLC is our 50%-owned joint venture with Lanxess that manufactures products for our Polyurethanes and Performance Products segments.

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Arabian Amines Company (“AAC�) is our 50%-owned joint venture with Zamil group that manufactures products for our Performance Products segment.

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During the nine months ended September 30, 2021, there were no changes in our variable interest entities.

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Creditors of these entities have no recourse to our general credit. See “Note 8. Debt—Direct and Subsidiary Debt.â€� As the primary beneficiary of these variable interest entities atÌý September 30, 2021, the joint venturesâ€� assets, liabilities and results of operations are included in our condensed consolidated financial statements.

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The following table summarizes the carrying amount of our variable interest entities� assets and liabilities included in our condensed consolidated balance sheet as of September 30, 2021 and our consolidated balance sheet as of December 31, 2020 (dollars in millions):

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Ìý Ìý

September 30,

Ìý Ìý

December 31,

Ìý
Ìý Ìý

2021

Ìý Ìý

2020

Ìý

Current assets

Ìý $ 97 Ìý Ìý $ 49 Ìý

Property, plant and equipment, net

Ìý Ìý 161 Ìý Ìý Ìý 167 Ìý

Operating lease right-of-use assets

Ìý Ìý 28 Ìý Ìý Ìý 22 Ìý

Other noncurrent assets

Ìý Ìý 147 Ìý Ìý Ìý 138 Ìý

Deferred income taxes

Ìý Ìý 30 Ìý Ìý Ìý 30 Ìý

Total assets

Ìý $ 463 Ìý Ìý $ 406 Ìý

Current liabilities

Ìý $ 175 Ìý Ìý $ 183 Ìý

Long-term debt

Ìý Ìý 53 Ìý Ìý Ìý 3 Ìý

Noncurrent operating lease liabilities

Ìý Ìý 22 Ìý Ìý Ìý 17 Ìý

Other noncurrent liabilities

Ìý Ìý 76 Ìý Ìý Ìý 82 Ìý

Deferred income taxes

Ìý Ìý 1 Ìý Ìý Ìý 1 Ìý

Total liabilities

Ìý $ 327 Ìý Ìý $ 286 Ìý

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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 for the three and nine months ended September 30, 2021 and 2020 are as follows (dollars in millions):

Ìý

Ìý Ìý

Three months

Ìý Ìý

Nine months

Ìý
Ìý Ìý

ended

Ìý Ìý

ended

Ìý
Ìý Ìý

September 30,

Ìý Ìý

September 30,

Ìý
Ìý Ìý 2021 Ìý Ìý

2020

Ìý Ìý

2021

Ìý

2020

Ìý

Revenues

Ìý $ â€� Ìý Ìý $ â€� Ìý Ìý $ â€� Ìý Ìý $ â€� Ìý

Income from continuing operations before income taxes

Ìý Ìý 4 Ìý Ìý Ìý â€� Ìý Ìý Ìý 11 Ìý Ìý Ìý 1 Ìý

Net cash provided by operating activities

Ìý Ìý 6 Ìý Ìý Ìý 3 Ìý Ìý Ìý 14 Ìý Ìý Ìý 17 Ìý

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