Huntsman Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Variable Interest Entities

Note 6 - Variable Interest Entities

9 Months Ended

Sep. 30, 2021

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 nine months ended September 30, 2021, 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 September 30, 2021, 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 September 30, 2021 and our consolidated balance sheet as of December 31, 2020 (dollars in millions):

	*September 30,*		*December 31,*
	*2021*		*2020*
Current assets	$	97	$	49
Property, plant and equipment, net		161		167
Operating lease right-of-use assets		28		22
Other noncurrent assets		147		138
Deferred income taxes		30		30
Total assets	$	463	$	406
Current liabilities	$	175	$	183
Long-term debt		53		3
Noncurrent operating lease liabilities		22		17
Other noncurrent liabilities		76		82
Deferred income taxes		1		1
Total liabilities	$	327	$	286

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 nine months ended September 30, 2021 and 2020 are as follows (dollars in millions):

	*Three months*				*Nine months*
	*ended*				*ended*
	*September 30,*				*September 30,*
	*2021*		*2020*		*2021*		*2020*
Revenues	$	—	$	—	$	—	$	—
Income from continuing operations before income taxes		4		—		11		1
Net cash provided by operating activities		6		3		14		17