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Quarterly report pursuant to Section 13 or 15(d)

Note 5 - Variable Interest Entities

v3.23.3
Note 5 - Variable Interest Entities
9 Months Ended
Sep. 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 nine months ended September 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 September 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 September 30, 2023 and our consolidated balance sheet as of December 31, 2022 (dollars in millions):

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Ìý Ìý

September 30,

Ìý Ìý

December 31,

Ìý
Ìý Ìý

2023

Ìý Ìý

2022

Ìý

Current assets

Ìý $ 78 Ìý Ìý $ 73 Ìý

Property, plant and equipment, net

Ìý Ìý 145 Ìý Ìý Ìý 149 Ìý

Operating lease right-of-use assets

Ìý Ìý 29 Ìý Ìý Ìý 28 Ìý

Other noncurrent assets

Ìý Ìý 133 Ìý Ìý Ìý 140 Ìý

Deferred income taxes

Ìý Ìý 13 Ìý Ìý Ìý 13 Ìý

Total assets

Ìý $ 398 Ìý Ìý $ 403 Ìý

Current liabilities

Ìý $ 107 Ìý Ìý $ 144 Ìý

Long-term debt

Ìý Ìý 19 Ìý Ìý Ìý 26 Ìý

Noncurrent operating lease liabilities

Ìý Ìý 20 Ìý Ìý Ìý 19 Ìý

Other noncurrent liabilities

Ìý Ìý 24 Ìý Ìý Ìý 25 Ìý

Total liabilities

Ìý $ 170 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 nine months ended September 30, 2023 and 2022 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

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 18 Ìý Ìý Ìý 11 Ìý Ìý Ìý 48 Ìý Ìý Ìý 24 Ìý

Net cash provided by operating activities

Ìý Ìý 12 Ìý Ìý Ìý 21 Ìý Ìý Ìý 60 Ìý Ìý Ìý 56 Ìý

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