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6. VARIABLE INTEREST ENTITIES
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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Rubicon LLC is our 50%-owned joint venture with Lanxess that manufactures products for our Polyurethanes and Performance Products segments. The structure of the joint venture is such that the total equity investment at risk is not sufficient to permit the joint venture to finance its activities without additional financial support. By virtue of the operating agreement with this joint venture, we purchase a majority of the output, absorb a majority of the operating costs and provide a majority of the additional funding.
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Arabian Amines Company is our 50%-owned joint venture with Zamil group that manufactures products for our Performance Products segment. As required in the operating agreement governing this joint venture, we purchase all of Arabian Amines Company’s production and sell it to our customers. Substantially all of the joint venture’s activities are conducted on our behalf.
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Sasol-Huntsman is our 50%-owned joint venture with Sasol that owns and operates a maleic anhydride facility in Moers, Germany. This joint venture manufactures products for our Performance Products segment. The joint venture uses our technology and expertise, and at the time of the last reconsideration event, we took on a disproportionate amount of risk of loss due to a related-party loan to Sasol-Huntsman for which we assumed the default risk. On July 26, 2019, we announced that we signed a definitive agreement with Sasol to acquire the remaining 50% interest that we do not own in the Sasol-Huntsman maleic anhydride joint venture. See “Note 1. General—Recent Developments.”
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Creditors of these entities have no recourse to our general credit. See “Note 8. Debt—Direct and Subsidiary Debt.” As the primary beneficiary of these variable interest entities at June 30, 2019, the joint ventures’ assets, liabilities and results of operations are included in our condensed consolidated financial statements.
The following table summarizes the carrying amount of our variable interest entities’ assets and liabilities included in our condensed consolidated balance sheet as of June 30, 2019 and our consolidated balance sheet as of December 31, 2018 (dollars in millions):
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June 30, |
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December 31, |
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2019 |
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2018 |
Current assets |
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$ |
92 |
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$ |
92 |
Property, plant and equipment, net |
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263 |
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265 |
Operating lease right-of-use assets |
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19 |
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— |
Other noncurrent assets |
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152 |
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136 |
Deferred income taxes |
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32 |
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32 |
Intangible assets |
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10 |
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10 |
Goodwill |
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13 |
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|
14 |
Total assets |
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$ |
581 |
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$ |
549 |
Current liabilities |
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$ |
162 |
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$ |
178 |
Long-term debt |
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45 |
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61 |
Deferred income taxes |
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11 |
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11 |
Noncurrent operating lease liabilities |
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14 |
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— |
Other noncurrent liabilities |
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|
95 |
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|
97 |
Total liabilities |
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$ |
327 |
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$ |
347 |
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, 2019 and 2018 are as follows (dollars in millions):
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Three months |
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Six months |
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ended |
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ended |
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June 30, |
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June 30, |
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2019 |
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2018 |
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2019 |
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2018 |
Revenues |
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$ |
31 |
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$ |
39 |
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$ |
67 |
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$ |
77 |
Income from continuing operations before income taxes |
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4 |
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9 |
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13 |
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19 |
Net cash provided by operating activities |
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29 |
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|
14 |
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|
60 |
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|
29 |
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