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 Condensed Consolidated Balance Sheets before intragroup eliminations with other CRH companies were:


	June 30	December 31	June 30
in $ millions	2025	2024	2024
Assets
Current assets:
Cash and cash equivalents	27	21	34
Accounts receivable, net	43	38	38
Inventories	91	96	98
Other current assets	61	58	52
Total current assets	222	213	222
Property, plant and equipment, net	849	846	852
Goodwill	196	190	188
Intangible assets, net	1	1	–
Operating lease right-of-use assets, net	4	5	5
Other noncurrent assets	11	9	10
Total assets	1,283	1,264	1,277

Liabilities
Current liabilities:
Accounts payable	104	106	94
Accrued expenses	43	44	36
Current portion of long-term debt	62	33	82
Operating lease liabilities	1	1	1
Other current liabilities	25	25	25
Total current liabilities	235	209	238
Long-term debt	347	345	303
Deferred income tax liabilities	95	94	95
Noncurrent operating lease liabilities	4	4	4
Other noncurrent liabilities	23	21	18
Total liabilities	704	673	658

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 companies were:


	Three months ended		Six months ended
	June 30		June 30
in $ millions	2025	2024	2025	2024
Total revenues	82	98	166	194
Total cost of revenues	(85)	(89)	(165)	(176)
Gross (loss) profit	(3)	9	1	18
Net loss	(17)	(3)	(30)	(12)

Net cash used in operating activities			(12)	(2)