15.Investments Accounted for Using the Equity Method

The two following tables contain summarized data from the income statement and statement of financial position of the associate PO JV, LP, Houston, Texas (United States), which is accounted for using the equity method, and show the respective amounts recognized in the financial statements of the Covestro Group.

In year 2000, the polyols business and parts of the propylene oxide (PO) production operations of former Lyondell Chemicals Company, Houston, Texas (United States), were acquired with the objective of ensuring access to patented technologies and safeguarding the long-term supply of PO, a precursor for polyurethanes. As part of this strategy, a company was established to jointly produce PO (PO JV, LP, in which Covestro continues to hold a 39.4% interest, as in the prior year). Covestro benefits from fixed long-term supply quotas/volumes of PO from this company’s production.

The item “Other” mainly comprises differences arising from adjustments of data to Covestro’s uniform accounting policies, purchase price allocations and their subsequent measurement.

The following table contains the income statement data and carrying amounts of Paltough Industries (1998) Ltd., Kibbuz Ramat Yochanan (Israel) (Covestro’s interest unchanged from the prior year at 25%):