Huntsman Corporation Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Note 8 - Variable Interest Entities

Note 8 - Variable Interest Entities

12 Months Ended

Dec. 31, 2025

Variable Interest Entity Disclosure [Text Block]

8. 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 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.

●

AAC is our 50%-owned joint venture with the Zamil Group that manufactures products for our Performance Products segment. As required in the operating agreement governing this joint venture, we purchase all of AAC’s production and sell it to our customers. Substantially all of the joint venture’s activities are conducted on our behalf.

During the year ended December 31, 2025, there were no changes in our variable interest entities.

Creditors of our variable interest entities have no recourse to our general credit. See “Note 15. Debt—Direct and Subsidiary Debt.” As the primary beneficiary of these variable interest entities at December 31, 2025, the joint ventures’ assets, liabilities and results of operations are included in our consolidated financial statements.

The following table summarizes the carrying amount of our variable interest entities’ assets and liabilities included in our consolidated balance sheets as of December 31, 2025 and 2024 (dollars in millions):

	*December 31,*
	*2025*		*2024*
Current assets	$	81	$	89
Property, plant and equipment, net		122		124
Operating lease right-of-use assets		19		21
Other noncurrent assets		139		133
Deferred income taxes		8		10
Total assets	$	369	$	377
Current liabilities	$	126	$	147
Long-term debt		—		7
Noncurrent operating lease liabilities		12		15
Other noncurrent liabilities		15		16
Deferred income taxes		2		2
Total liabilities	$	155	$	187

Certain operating activities for our variable interest entities were as follows (dollars in millions):

	*Year ended December 31,*
	*2025*		*2024*		*2023*
Income from continuing operations before income taxes	$	50	$	67	$	60
Net cash provided by operating activities		62		87		78