ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾

Registration of securities issued in business combination transactions

INVESTMENT IN UNCONSOLIDATED AFFILIATES

v2.4.0.6
INVESTMENT IN UNCONSOLIDATED AFFILIATES
12 Months Ended
Dec. 31, 2012
INVESTMENT IN UNCONSOLIDATED AFFILIATES Ìý
INVESTMENT IN UNCONSOLIDATED AFFILIATES

6. INVESTMENT IN UNCONSOLIDATED AFFILIATES

ÌýÌýÌýÌýÌýÌýÌýÌýOur ownership percentage and investment in unconsolidated affiliates were as follows (dollars in millions):

Ìý
Ìý DecemberÌý31, Ìý
Ìý
Ìý 2012 Ìý 2011 Ìý

Equity Method:

Ìý Ìý Ìý Ìý Ìý Ìý Ìý

Louisiana Pigment Company,ÌýL.P. (50%)

Ìý $ 111 Ìý $ 90 Ìý

BASF ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Shanghai Isocyanate InvestmentÌýBV (50%)(1)

Ìý Ìý 81 Ìý Ìý 79 Ìý

Nanjing Jinling ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ New MaterialÌýCo.,ÌýLtd. (49%)

Ìý Ìý 24 Ìý Ìý â€� Ìý

International Polyurethanes InvestmentsÌýB.V. (45%)(2)

Ìý Ìý â€� Ìý Ìý 17 Ìý

Jurong Ningwu New Materials DevelopmentÌýCo.,ÌýLtd. (30%)

Ìý Ìý 12 Ìý Ìý 10 Ìý

Others

Ìý Ìý 2 Ìý Ìý 1 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý

Total equity method investments

Ìý Ìý 230 Ìý Ìý 197 Ìý

Cost Method:

Ìý Ìý Ìý Ìý Ìý Ìý Ìý

International Diol Company (4.35%)

Ìý Ìý 5 Ìý Ìý 5 Ìý

White Mountain Titanium Corporation (3%)

Ìý Ìý 3 Ìý Ìý â€� Ìý
Ìý Ìý Ìý Ìý Ìý Ìý

Total investments

Ìý $ 238 Ìý $ 202 Ìý
Ìý Ìý Ìý Ìý Ìý Ìý

(1)
We own 50% of BASF ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Shanghai Isocyanate InvestmentÌýBV. BASF ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Shanghai Isocyanate InvestmentÌýBV owns a 70% interest in SLIC, thus giving us an indirect 35% interest in SLIC.

(2)
We began consolidating International Polyurethanes InvestmentsÌýB.V. as of JulyÌý3, 2012. See "NoteÌý3. Business Combinations and Dispositions."

ÌýÌýÌýÌýÌýÌýÌýÌýSummarized applicable financial information of Sasol-ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ is presented below (dollars in millions):

Ìý
Ìý Year ended
DecemberÌý31,
Ìý
Ìý
Ìý 2011(1) Ìý 2010 Ìý

Revenues

Ìý $ 40 Ìý $ 108 Ìý

Gross profit

Ìý Ìý 7 Ìý Ìý 14 Ìý

Net income

Ìý Ìý (2 ) Ìý 10 Ìý

(1)
Represents activity for the period from JanuaryÌý1, 2011 to the date of consolidation on AprilÌý1, 2011. No balance sheet information was presented due to the consolidation of Sasol-ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ in 2011.

ÌýÌýÌýÌýÌýÌýÌýÌýSummarized applicable financial information of our other unconsolidated affiliates is presented below (dollars in millions):

Ìý
Ìý DecemberÌý31, Ìý
Ìý
Ìý 2012 Ìý 2011 Ìý 2010 Ìý

Assets

Ìý $ 624 Ìý $ 621 Ìý Ìý Ìý Ìý

Liabilities

Ìý Ìý 257 Ìý Ìý 285 Ìý Ìý Ìý Ìý

Revenues

Ìý Ìý 1,083 (1) Ìý 954 Ìý $ 936 Ìý

Net income

Ìý Ìý 17 (1) Ìý 22 Ìý Ìý 10 Ìý

(1)
Contains activity for International Polyurethanes InvestmentsÌýB.V. for the period from JanuaryÌý1, 2012 to the date of consolidation on JulyÌý3, 2012.

ÌýÌýÌýÌýÌýÌýÌýÌýIn 2008, we and our joint venture partner, the Zamil Group, formed Arabian Amines Company, our ethyleneamines manufacturing joint venture in Jubail, Saudi Arabia. Arabian Amines Company's funding requirements have been satisfied through a combination of debt and equity, with the equity already provided on a 50/50 basis by us and the Zamil Group. Trial production commenced in the second quarter of 2010, and from July 2010, Arabian Amines Company generated significant revenues from the sale of product. The plant has an approximate annual capacity of 60Ìýmillion pounds. We purchase and sell all of the production from this joint venture. Arabian Amines Company was accounted for under the equity method during its development stage; we began consolidating this joint venture beginning JulyÌý1, 2010. For more information, see "NoteÌý7. Variable Interest Entities."

ÌýÌýÌýÌýÌýÌýÌýÌýDuring 2010, we recorded an immaterial non-recurring $18Ìýmillion credit to equity income of investment in unconsolidated affiliates to appropriately reflect our investment in the Sasol-ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ joint venture. This credit represented a cumulative correction of an error that was also individually immaterial in each year since our initial investment in the joint venture in 1997. In connection with the expansion of the maleic anhydride capacity at our Sasol-ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ joint venture, a variable interest entity reconsideration event occurred in the second quarter of 2011 when the plant expansion began production. As a result of our assessment, we concluded that the joint venture is a variable interest entity and that we are the primary beneficiary. Accordingly, we began consolidating this joint venture during the second quarter of 2011. For more information, see "NoteÌý7. Variable Interest Entities."

ÌýÌýÌýÌýÌýÌýÌýÌýOn NovemberÌý13, 2012, we entered into an agreement to formÌýa joint venture with Sinopec. The joint venture will involve the construction and operation of a PO/MTBE facility in China. Under the joint venture agreement, we will have a 49% interest in the joint venture and Sinopec will hold a 51% interest. Our equity investment is anticipated to be approximately $120Ìýmillion, and we expect to receive significant license fees from the joint venture. The timing of equity contributions and license fee payments depends on various factors, but the majority are intended to be made over the course of the construction period of the plant (expected to be completed by the end of 2014).