Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Variable Interest Entities

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Note 6 - Variable Interest Entities
3 Months Ended
Mar. 31, 2022
Notes to Financial Statements  
Variable Interest Entity Disclosure [Text Block]

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 (“AAC”) is our 50%-owned joint venture with Zamil group that manufactures products for our Performance Products segment.

During the three months ended March 31, 2022, there were no changes in our variable interest entities.

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  March 31, 2022, the joint ventures’ assets, liabilities and results of operations are included in our condensed consolidated financial statements.

The following table summarizes the carrying amounts of our variable interest entities’ assets and liabilities included in our condensed consolidated balance sheet as of March 31, 2022 and our consolidated balance sheet as of December 31, 2021 (dollars in millions):

   

March 31,

   

December 31,

 
   

2022

   

2021

 

Current assets

  $ 92     $ 81  

Property, plant and equipment, net

    156       161  

Operating lease right-of-use assets

    25       26  

Other noncurrent assets

    147       148  

Deferred income taxes

    21       21  

Total assets

  $ 441     $ 437  

Current liabilities

  $ 177     $ 176  

Long-term debt

    33       35  

Noncurrent operating lease liabilities

    19       20  

Other noncurrent liabilities

    46       46  

Total liabilities

  $ 275     $ 277  

 

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, 2022 and 2021 are as follows (dollars in millions):

 

   

Three months

 
   

ended

 
   

March 31,

 
   

2022

   

2021

 

Revenues

  $     $  

Income from continuing operations before income taxes

    5        

Net cash provided by operating activities

    8       4