Huntsman Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Note 8 - Variable Interest Entities

Note 8 - Variable Interest Entities

12 Months Ended

Dec. 31, 2023

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, 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 14. Debt—Direct and Subsidiary Debt.” As the primary beneficiary of these variable interest entities at December 31, 2023, 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, 2023 and 2022 (dollars in millions):

	*December 31,*
	*2023*		*2022*
Current assets	$	67	$	73
Property, plant and equipment, net		150		149
Operating lease right-of-use assets		29		28
Other noncurrent assets		125		140
Deferred income taxes		13		13
Total assets	$	384	$	403
Current liabilities	$	121	$	144
Long-term debt		17		26
Noncurrent operating lease liabilities		21		19
Other noncurrent liabilities		15		25
Deferred income taxes		1		—
Total liabilities	$	175	$	214

The revenues, income from continuing operations before income taxes and net cash provided by operating activities for our variable interest entities are as follows (dollars in millions):

	*Year ended December 31,*
	*2023*		*2022*		*2021*
Revenues	$	—	$	—	$	—
Income from continuing operations before income taxes		60		36		12
Net cash provided by operating activities		78		81		33