How are UNCONSOLIDATED SUBSIDIARIES an example of "off-balance-sheet financing"? Companies are able to avoid recognizing income tax expense associated with subsidiaries that are MORE than 50% owned by the company. Companies are able to avoid recognizing interest expense associated with subsidiaries that are MORE than 50% owned by the company. Companies are able to avoid recognizing debt associated with subsidiaries that are LESS than 50% owned by the company. Companies are able to avoid recognizing cost of goods sold associated with subsidiaries that are MORE than 50% owned by the company