Variable interest entities

12 Months Ended

Dec. 31, 2024

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 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. 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 Consolidated Balance Sheets before intragroup eliminations with other CRH companies at December 31 were:

in $ millions	2024	2023
Assets
Current assets:
Cash and cash equivalents	21	19
Accounts receivable, net	38	31
Inventories	96	99
Other current assets	58	51
Total current assets	213	200
Property, plant and equipment, net	846	923
Goodwill	190	200
Intangible assets, net	1	–
Operating lease right-of-use assets, net	5	5
Other noncurrent assets	9	11
Total assets	1,264	1,339
Liabilities
Current liabilities:
Accounts payable	106	92
Accrued expenses	44	36
Current portion of long-term debt	33	98
Operating lease liabilities	1	1
Other current liabilities	25	25
Total current liabilities	209	252
Long-term debt	345	297
Deferred income tax liabilities	94	106
Noncurrent operating lease liabilities	4	5
Other noncurrent liabilities	21	17
Total liabilities	673	677

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 companies for the years ended December 31 were:

in $ millions	2024	2023	2022
Total revenues	359	446	544
Total cost of revenues	(339)	(416)	(479)
Gross profit	20	30	65
Net loss	(40)	(325)	(24)
Net cash provided by operating activities	10	24	12