Investments in Unconsolidated Affiliate

9 Months Ended

Sep. 30, 2023

Investments in Unconsolidated Affiliate

Investments in Unconsolidated Affiliates

NOTE 6—INVESTMENTS IN UNCONSOLIDATED AFFILIATE

The Company maintains an investment in an unconsolidated affiliate, Americas Styrenics LLC (“Americas Styrenics,” a styrene and polystyrene joint venture with Chevron Phillips Chemical Company LP), which is accounted for using the equity method. The results of Americas Styrenics are included within its separate reporting segment.

Americas Styrenics is a privately held company; therefore, a quoted market price for its equity interests is not available. The summarized financial information of the Company’s unconsolidated affiliate is shown below.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Sales	$	455.2	$	535.3	$	1,315.1	$	1,654.3
Gross profit	$	54.0	$	70.6	$	146.0	$	212.2
Net income	$	40.4	$	48.3	$	104.0	$	164.5

As of September 30, 2023 and December 31, 2022, the Company’s investment in Americas Styrenics was $249.2 million and $255.1 million, respectively, which was $5.6 million and $8.4 million greater than the Company’s 50% share of the underlying net assets of Americas Styrenics, respectively. This amount represents the difference between the book value of assets held by the joint venture and the Company’s 50% share of the total recorded value of the joint venture’s assets, inclusive of certain adjustments to conform with the Company’s accounting policies. This difference is being amortized over a weighted average remaining useful life of approximately 1.2 years as of September 30, 2023. The Company received dividends of $25.0 million and $55.0 million from Americas Styrenics during the three and nine months ended September 30, 2023, respectively, and $25.0 million and $62.5 million during the three and nine months ended September 30, 2022, respectively.