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Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Variable Interest Entities

v3.24.3
Note 6 - Variable Interest Entities
9 Months Ended
Sep. 30, 2024
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, 2024, 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 8. Debt—Direct and Subsidiary Debt.â€� As the primary beneficiary of these variable interest entities atÌý September 30, 2024, 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, 2024Ìýand our consolidated balance sheet as ofÌý December 31, 2023 (dollars in millions):

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Ìý Ìý

September 30,

Ìý Ìý

December 31,

Ìý
Ìý Ìý

2024

Ìý Ìý

2023

Ìý

Current assets

Ìý $ 115 Ìý Ìý $ 67 Ìý

Property, plant and equipment, net

Ìý Ìý 153 Ìý Ìý Ìý 150 Ìý

Operating lease right-of-use assets

Ìý Ìý 22 Ìý Ìý Ìý 29 Ìý

Other noncurrent assets

Ìý Ìý 122 Ìý Ìý Ìý 125 Ìý

Deferred income taxes

Ìý Ìý 13 Ìý Ìý Ìý 13 Ìý

Total assets

Ìý $ 425 Ìý Ìý $ 384 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Current liabilities

Ìý $ 123 Ìý Ìý $ 121 Ìý

Long-term debt

Ìý Ìý 10 Ìý Ìý Ìý 17 Ìý

Noncurrent operating lease liabilities

Ìý Ìý 16 Ìý Ìý Ìý 21 Ìý

Other noncurrent liabilities

Ìý Ìý 15 Ìý Ìý Ìý 15 Ìý

Deferred income taxes

Ìý Ìý 1 Ìý Ìý Ìý 1 Ìý

Total liabilities

Ìý $ 165 Ìý Ìý $ 175 Ìý

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Certain operating activities for our variable interest entities for the three and nine months ended September 30, 2024 and 2023 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

2024

Ìý Ìý

2023

Ìý Ìý

2024

Ìý Ìý

2023

Ìý

Income from continuing operations before income taxes

Ìý $ 19 Ìý Ìý $ 18 Ìý Ìý $ 54 Ìý Ìý $ 48 Ìý

Net cash provided by operating activities

Ìý Ìý 27 Ìý Ìý Ìý 12 Ìý Ìý Ìý 68 Ìý Ìý Ìý 60 Ìý

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