VARIABLE INTEREST ENTITIES

A summary of TDCC'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

TDCC's consolidated financial statements include the assets, liabilities and results of operations of VIEs for which TDCC 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 TDCC’s consolidated balance sheets at March 31, 2019 and December 31, 2018:



Assets and Liabilities of Consolidated VIEs	Mar 31, 2019		Dec 31, 2018
In millions	Mar 31, 2019		Dec 31, 2018
Cash and cash equivalents	$	109	$	82
Other current assets	116		114
Net property	718		734
Other noncurrent assets	60		45
Total assets ¹	$	1,003	$	975
Current liabilities	$	318	$	334
Long-term debt	43		75
Other noncurrent obligations	46		31
Total liabilities ²	$	407	$	440


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


2.	All liabilities were nonrecourse at March 31, 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 March 31, 2019 and December 31, 2018, are adjusted for intercompany eliminations and parental guarantees.

Subsequent Event

TDCC is a 50 percent indirect owner in a propylene oxide ("PO") manufacturing joint venture in Asia Pacific. TDCC has a variable interest in this joint venture relating to arrangements between the joint venture and TDCC, 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, TDCC 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.

Nonconsolidated VIEs

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



Carrying Amounts of Assets and Liabilities Related to Nonconsolidated VIEs		Mar 31, 2019			Dec 31, 2018
In millions	Description of asset or liability	Mar 31, 2019			Dec 31, 2018
Hemlock Semiconductor L.L.C.	Equity method investment ¹	$	(658	)	$	(495	)
Silicon joint ventures	Equity method investments ²	$	96		$	100
AgroFresh Solutions, Inc.	Equity method investment ²	$	45		$	48
AgroFresh Solutions, Inc.	Other receivable ³	$	8		$	8


1.	Classified as "Other noncurrent obligations" in the consolidated balance sheets. TDCC's maximum exposure to loss was zero at March 31, 2019 (zero at December 31, 2018).


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


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