Variable interest entities

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable interest entities

16. Variable interest entities

The Company’s operations in the Philippines are conducted through a Variable Interest Entity (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 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 Condensed Consolidated Balance Sheets before intragroup eliminations with other CRH plc companies were:

	March 31	December 31	March 31
in $ millions	2024	2023	2023
Assets
Current assets:
Cash and cash equivalents	29	19	37
Accounts receivable, net	30	31	34
Inventories	106	99	121
Other current assets	54	51	49
Total current assets	219	200	241
Property, plant and equipment, net	897	923	969
Goodwill	196	200	507
Operating lease right-of-use assets, net	5	5	6
Other noncurrent assets	10	11	9
Total assets	1,327	1,339	1,732
Liabilities
Current liabilities:
Accounts payable	95	92	95
Accrued expenses	37	36	43
Current portion of long-term debt	87	98	89
Operating lease liabilities	1	1	1
Other current liabilities	24	25	25
Total current liabilities	244	252	253
Long-term debt	312	297	353
Deferred income tax liabilities	104	106	112
Noncurrent operating lease liabilities	4	5	5
Other noncurrent liabilities	18	17	15
Total liabilities	682	677	738

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

	Three months ended
	March 31
in $ millions	2024	2023
Total revenues	96	115
Total cost of revenues	(87)	(114)
Gross profit	9	1
Net loss	(9)	(12)
Net cash used in operating activities	(6)	(7)