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Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Variable Interest Entities

v3.22.1
Note 6 - Variable Interest Entities
3 Months Ended
Mar. 31, 2022
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 three months ended March 31, 2022, 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 March 31, 2022, 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 amounts of our variable interest entities� assets and liabilities included in our condensed consolidated balance sheet as of March 31, 2022 and our consolidated balance sheet as of December 31, 2021 (dollars in millions):

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Ìý Ìý

March 31,

Ìý Ìý

December 31,

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Ìý Ìý

2022

Ìý Ìý

2021

Ìý

Current assets

Ìý $ 92 Ìý Ìý $ 81 Ìý

Property, plant and equipment, net

Ìý Ìý 156 Ìý Ìý Ìý 161 Ìý

Operating lease right-of-use assets

Ìý Ìý 25 Ìý Ìý Ìý 26 Ìý

Other noncurrent assets

Ìý Ìý 147 Ìý Ìý Ìý 148 Ìý

Deferred income taxes

Ìý Ìý 21 Ìý Ìý Ìý 21 Ìý

Total assets

Ìý $ 441 Ìý Ìý $ 437 Ìý

Current liabilities

Ìý $ 177 Ìý Ìý $ 176 Ìý

Long-term debt

Ìý Ìý 33 Ìý Ìý Ìý 35 Ìý

Noncurrent operating lease liabilities

Ìý Ìý 19 Ìý Ìý Ìý 20 Ìý

Other noncurrent liabilities

Ìý Ìý 46 Ìý Ìý Ìý 46 Ìý

Total liabilities

Ìý $ 275 Ìý Ìý $ 277 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 months ended March 31, 2022 and 2021 are as follows (dollars in millions):

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Three months

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ended

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March 31,

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2022

Ìý Ìý

2021

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Revenues

Ìý $ â€� Ìý Ìý $ â€� Ìý

Income from continuing operations before income taxes

Ìý Ìý 5 Ìý Ìý Ìý â€� Ìý

Net cash provided by operating activities

Ìý Ìý 8 Ìý Ìý Ìý 4 Ìý

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