Variable interest entities

12 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable interest entities

22. Variable interest entities

The Company’s operations in the Philippines are conducted through a VIE, wherein the Company holds 40% of the equity share capital and a 55% share of earnings and distributions. The remaining noncontrolling interest of 60% equity share capital and 45% share of earnings and distributions is held by an unrelated party. The Company’s voting rights are not proportional to its share of earnings and distributions, and substantially all of the activities of the Philippines business are conducted on behalf of the Company and controlled by the Company through contractual relationships. Therefore, the Philippines business meets the definition of a VIE for which the Company is the primary beneficiary and, therefore, is consolidated.

Further, the Company has provided subordinated debt to the intermediate parent of the Philippines business which exposes the Company to the profits and losses of the Philippines business. The debt is repayable only in the event where the shareholder agreement of the intermediate parent of the Philippines business is terminated or where the Company transfers its shares in the intermediate parent to an unrelated entity (i.e., the debt exposure of the Company becomes in substance a residual interest in the intermediate parent).

The carrying amounts of assets and liabilities of the consolidated VIE, reported within the Consolidated Balance Sheets before intragroup eliminations with other CRH plc companies at December 31 were:

in $ millions	2023	2022
Assets
Current assets:
Cash and cash equivalents	19	34
Accounts receivable, net	31	34
Inventories	99	149
Other current assets	51	48
Total current assets	200	265
Property, plant and equipment, net	923	954
Goodwill	200	495
Operating lease right-of-use assets, net	5	6
Other noncurrent assets	11	7
Total assets	1,339	1,727
Liabilities
Current liabilities:
Accounts payable	92	118
Accrued expenses	36	48
Current portion of long-term debt	98	72
Operating lease liabilities	1	1
Other current liabilities	25	28
Total current liabilities	252	267
Long-term debt	297	347
Deferred income tax liabilities	106	108
Noncurrent operating lease liabilities	5	5
Other noncurrent liabilities	17	15
Total liabilities	677	742

The operating results of the consolidated VIE, reported within the Consolidated Statements of Income and Consolidated Statements of Cash Flows before intragroup eliminations with other CRH plc companies for the years ended December 31 were:

in $ millions	2023	2022	2021
Total revenues	446	544	616
Total cost of revenues	(416)	(479)	(487)
Gross profit	30	65	129
Net (loss) income	(325)	(24)	61
Net cash provided by operating activities	24	12	75