VARIABLE INTEREST ENTITIES

A summary of the Company's variable interest entities ("VIEs") can be found in Note 23 to the Consolidated Financial Statements included in TDCC's Annual Report on Form 10-K for the year ended December 31, 2018.

Assets and Liabilities of Consolidated VIEs

The Company's consolidated financial statements include the assets, liabilities and results of operations of VIEs for which the Company is the primary beneficiary. The other equity holders’ interests are reflected in “Net income attributable to noncontrolling interests” in the consolidated statements of income and "Noncontrolling interests" in the consolidated balance sheets.

The following table summarizes the carrying amounts of these entities' assets and liabilities included in the Company’s consolidated balance sheets at June 30, 2019 and December 31, 2018:



Assets and Liabilities of Consolidated VIEs	Jun 30, 2019		Dec 31, 2018
In millions	Jun 30, 2019		Dec 31, 2018
Cash and cash equivalents	$	26	$	71
Other current assets	101		101
Net property	657		683
Other noncurrent assets	23		14
Total assets ¹	$	807	$	869
Current liabilities	$	436	$	307
Long-term debt	45		75
Other noncurrent obligations	22		14
Total liabilities ²	$	503	$	396


1.	All assets were restricted at June 30, 2019 and December 31, 2018.


2.	All liabilities were nonrecourse at June 30, 2019 and December 31, 2018.

Amounts presented in the consolidated balance sheets and the table above as restricted assets or nonrecourse obligations relating to consolidated VIEs at June 30, 2019 and December 31, 2018 are adjusted for intercompany eliminations and parental guarantees.

The Company is a 50 percent indirect owner in a propylene oxide ("PO") manufacturing joint venture in Asia Pacific. The Company has a variable interest in this joint venture relating to arrangements between the joint venture and the Company involving the majority of the output on take-or-pay terms, with pricing ensuring a guaranteed return to the joint venture. On April 30, 2019, the Company executed an agreement to acquire full ownership in the PO manufacturing joint venture for an estimated cash purchase price of $312 million, with an expected closing date in the fourth quarter of 2019. Approximately half of the purchase price is expected to be attributed to the Company’s proportionate equity interest in the entity that owns the PO manufacturing joint venture.

Nonconsolidated VIEs

The following table summarizes the carrying amounts of assets included in the consolidated balance sheets at June 30, 2019 and December 31, 2018, related to variable interests in joint ventures or entities for which the Company is not the primary beneficiary. The Company's maximum exposure to loss is the same as the carrying amounts, unless otherwise noted below.



Carrying Amounts of Assets Related to Nonconsolidated VIEs		Jun 30, 2019		Dec 31, 2018
In millions	Description of asset	Jun 30, 2019		Dec 31, 2018
Silicon joint ventures	Equity method investments ¹	$	98	$	100
AgroFresh Solutions, Inc.	Equity method investment ¹	$	31	$	48
AgroFresh Solutions, Inc.	Other receivable ²	$	8	$	8


1.	Classified as "Investment in nonconsolidated affiliates" in the consolidated balance sheets.


2.	Classified as "Accounts and notes receivable - Other" in the consolidated balance sheets.