Quarterly report pursuant to Section 13 or 15(d)

VARIABLE INTEREST ENTITIES

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VARIABLE INTEREST ENTITIES
6 Months Ended
Jun. 30, 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 six months ended 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 8. Debt—Direct and Subsidiary Debt.” As the primary beneficiary of these variable interest June 30, 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 June 30, 2020 and our consolidated balance sheet as of December 31, 2019 (dollars in millions):

June 30, 

December 31, 

    

2020

    

2019

Current assets

$

41

$

50

Property, plant and equipment, net

173

180

Operating lease right-of-use assets

17

16

Other noncurrent assets

138

132

Deferred income taxes

30

30

Total assets

$

399

$

408

Current liabilities

$

143

$

151

Long-term debt

6

29

Noncurrent operating lease liabilities

13

11

Other noncurrent liabilities

83

87

Total liabilities

$

245

$

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 and six months ended June 30, 2020 and 2019 are as follows (dollars in millions):

Three months

Six months

ended

ended

June 30, 

June 30, 

2020(1)

    

2019

2020(1)

    

2019

Revenues

$

$

31

$

$

67

Income from continuing operations before income taxes

4

1

13

Net cash provided by operating activities

8

29

14

60

(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.