Investments in Unconsolidated Affiliates

9 Months Ended

Sep. 30, 2022

Investments in Unconsolidated Affiliates

Investments in Unconsolidated Affiliates

NOTE 6—INVESTMENTS IN UNCONSOLIDATED AFFILIATES

The Company is currently supplemented by one joint venture, 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 own 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,
	2022		2021		2022		2021
Sales	$	535.3	$	433.4	$	1,654.3	$	1,351.9
Gross profit	$	70.6	$	49.3	$	212.2	$	189.2
Net income	$	48.3	$	37.2	$	164.5	$	151.8

As of September 30, 2022 and December 31, 2021, the Company’s investment in Americas Styrenics was $269.2 million and $247.8 million, respectively, which was $11.0 million and $9.4 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 2.3 years as of September 30, 2022. The Company received dividends of $25.0 million and $62.5 million from Americas Styrenics during the three and nine months ended September 30, 2022, respectively, and $20.0 million and $60.0 million during the three and nine months ended September 30, 2021, respectively.