Quarterly report pursuant to Section 13 or 15(d)

VARIABLE INTEREST ENTITIES

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VARIABLE INTEREST ENTITIES
3 Months Ended
Mar. 31, 2020
VARIABLE INTEREST ENTITIES  
VARIABLE INTEREST ENTITIES

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:

Rubicon LLC is our 50%-owned joint venture with Lanxess that manufactures products for our Polyurethanes and Performance Products segments.

Arabian Amines Company is our 50%-owned joint venture with Zamil group that manufactures products for our Performance Products segment.

During the first quarter of 2020, there were no changes in our variable interest entities.

Sasol-Huntsman was our 50%-owned joint venture with Sasol that owned and operated a maleic anhydride facility in Moers, Germany. On September 30, 2019, we acquired the 50% noncontrolling interest that we did not own in Sasol-Huntsman. As such, as of September 30, 2019, Sasol-Huntsman was no longer accounted for as a variable interest entity.

Creditors of these entities have no recourse to our general credit. See “Note 7. Debt—Direct and Subsidiary Debt.” As the primary beneficiary of these variable interest entities at March 31, 2020, 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 March 31, 2020 and our consolidated balance sheet as of December 31, 2019 (dollars in millions):

March 31, 

December 31, 

    

2020

    

2019

Current assets

$

55

$

50

Property, plant and equipment, net

178

180

Operating lease right-of-use assets

17

16

Other noncurrent assets

139

132

Deferred income taxes

30

30

Total assets

$

419

$

408

Current liabilities

$

159

$

151

Long-term debt

26

29

Noncurrent operating lease liabilities

12

11

Other noncurrent liabilities

85

87

Total liabilities

$

282

$

278

The revenues, income from continuing operations before income taxes and net cash provided by operating activities for our variable interest entities for the three months ended March 31, 2020 and 2019 are as follows (dollars in millions):

Three months

ended

March 31, 

2020(1)

    

2019

Revenues

$

$

36

Income from continuing operations before income taxes

1

9

Net cash provided by operating activities

6

31

(1) As of September 30, 2019, Sasol-Huntsman was no longer accounted for as a variable interest entity. Therefore, this financial data excludes information for Sasol-Huntsman.