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Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Variable Interest Entities

v3.22.2.2
Note 6 - Variable Interest Entities
9 Months Ended
Sep. 30, 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 nine months ended September 30, 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 September 30, 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 entitiesâ€� assets and liabilities included in our condensed consolidated balance sheet as ofÌý September 30, 2022 and our consolidated balance sheet as of December 31, 2021 (dollars in millions):

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Ìý Ìý

September 30,

Ìý Ìý

December 31,

Ìý
Ìý Ìý

2022

Ìý Ìý

2021

Ìý

Current assets

Ìý $ 92 Ìý Ìý $ 81 Ìý

Property, plant and equipment, net

Ìý Ìý 161 Ìý Ìý Ìý 161 Ìý

Operating lease right-of-use assets

Ìý Ìý 30 Ìý Ìý Ìý 26 Ìý

Other noncurrent assets

Ìý Ìý 138 Ìý Ìý Ìý 148 Ìý

Deferred income taxes

Ìý Ìý 21 Ìý Ìý Ìý 21 Ìý

Total assets

Ìý $ 442 Ìý Ìý $ 437 Ìý

Current liabilities

Ìý $ 157 Ìý Ìý $ 176 Ìý

Long-term debt

Ìý Ìý 28 Ìý Ìý Ìý 35 Ìý

Noncurrent operating lease liabilities

Ìý Ìý 21 Ìý Ìý Ìý 20 Ìý

Other noncurrent liabilities

Ìý Ìý 45 Ìý Ìý Ìý 46 Ìý

Total liabilities

Ìý $ 251 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 and nine months ended September 30, 2022 and 2021 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

2022

Ìý Ìý

2021

Ìý Ìý

2022

Ìý Ìý

2021

Ìý

Revenues

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

Income from continuing operations before income taxes

Ìý Ìý 11 Ìý Ìý Ìý 4 Ìý Ìý Ìý 24 Ìý Ìý Ìý 11 Ìý

Net cash provided by operating activities

Ìý Ìý 21 Ìý Ìý Ìý 6 Ìý Ìý Ìý 56 Ìý Ìý Ìý 14 Ìý

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