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Quarterly report pursuant to Section 13 or 15(d)

Note 5 - Variable Interest Entities

v3.23.2
Note 5 - Variable Interest Entities
6 Months Ended
Jun. 30, 2023
Notes to Financial Statements Ìý
Variable Interest Entity Disclosure [Text Block]

5. 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 six months ended June 30, 2023, 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 “Note 7. Debt—Direct and Subsidiary Debt.â€� As the primary beneficiary of these variable interest entities atÌý June 30, 2023, 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 June 30, 2023 and our consolidated balance sheet as of December 31, 2022 (dollars in millions):

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Ìý Ìý

June 30,

Ìý Ìý

December 31,

Ìý
Ìý Ìý

2023

Ìý Ìý

2022

Ìý

Current assets

Ìý $ 91 Ìý Ìý $ 73 Ìý

Property, plant and equipment, net

Ìý Ìý 150 Ìý Ìý Ìý 149 Ìý

Operating lease right-of-use assets

Ìý Ìý 25 Ìý Ìý Ìý 28 Ìý

Other noncurrent assets

Ìý Ìý 141 Ìý Ìý Ìý 140 Ìý

Deferred income taxes

Ìý Ìý 13 Ìý Ìý Ìý 13 Ìý

Total assets

Ìý $ 420 Ìý Ìý $ 403 Ìý

Current liabilities

Ìý $ 119 Ìý Ìý $ 144 Ìý

Long-term debt

Ìý Ìý 21 Ìý Ìý Ìý 26 Ìý

Noncurrent operating lease liabilities

Ìý Ìý 16 Ìý Ìý Ìý 19 Ìý

Other noncurrent liabilities

Ìý Ìý 24 Ìý Ìý Ìý 25 Ìý

Total liabilities

Ìý $ 180 Ìý Ìý $ 214 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 six months ended June 30, 2023 and 2022 are as follows (dollars in millions):

Ìý

Ìý Ìý

Three months

Ìý Ìý

Six months

Ìý
Ìý Ìý

ended

Ìý Ìý

ended

Ìý
Ìý Ìý

June 30,

Ìý Ìý

June 30,

Ìý
Ìý Ìý

2023

Ìý Ìý

2022

Ìý Ìý

2023

Ìý Ìý

2022

Ìý

Revenues

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

Income from continuing operations before income taxes

Ìý Ìý 15 Ìý Ìý Ìý 8 Ìý Ìý Ìý 30 Ìý Ìý Ìý 13 Ìý

Net cash provided by operating activities

Ìý Ìý 23 Ìý Ìý Ìý 27 Ìý Ìý Ìý 48 Ìý Ìý Ìý 35 Ìý

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