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

Quarterly report pursuant to Section 13 or 15(d)

Note 5 - Variable Interest Entities

Note 5 - Variable Interest Entities

3 Months Ended

Mar. 31, 2023

Variable Interest Entity Disclosure [Text Block]

5. 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, 2023, there were no changes in our variable interest entities.

Creditors of our variable interest 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, 2023, 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, 2023 and our consolidated balance sheet as of December 31, 2022 (dollars in millions):

	*March 31,*		*December 31,*
	*2023*		*2022*
Current assets	$	77	$	73
Property, plant and equipment, net		147		149
Operating lease right-of-use assets		28		28
Other noncurrent assets		141		140
Deferred income taxes		13		13
Total assets	$	406	$	403
Current liabilities	$	129	$	144
Long-term debt		24		26
Noncurrent operating lease liabilities		18		19
Other noncurrent liabilities		24		25
Total liabilities	$	195	$	214

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, 2023 and 2022 are as follows (dollars in millions):

	*Three months*
	*ended*
	*March 31,*
	*2023*		*2022*
Revenues	$	—	$	—
Income from continuing operations before income taxes		15		5
Net cash provided by operating activities		25		8