Exhibit 99.1
Summary of Unaudited Pro Forma Financial Information
The following unaudited financial information reflects the pro forma consolidated statements of operations for the three years ended December 31, 2005 and the related pro forma consolidated balance sheets as of September 30, 2006 for each of Huntsman International LLC and Huntsman Corporation (collectively, the “Company”), giving effect to the sale of the Huntsman European base chemicals and polymers business (the “Business”). The consolidated statements of operations for the nine months ended September 30, 2006 as included in the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2006 already reflects the results of operations of the Business as discontinued operations. Accordingly, no pro forma consolidated statement of operations is included herein for that period.
The unaudited pro forma consolidated statements of operations for the three years ended December 31, 2005 give effect to the sale as if the sale transaction occurred at the beginning of the period presented. The unaudited pro forma consolidated balance sheet as of September 30, 2006 assumes the sale occurred on September 30, 2006.
The pro forma information is not necessarily indicative of the financial position or results of operations of future periods or indicative of results that would have actually occurred had the transaction been completed as of the date thereof or as of the beginning of the periods presented therein. The pro forma adjustments, as described in the accompanying notes to the pro forma consolidated balance sheet and statements of operations, are based upon available information and certain assumptions the Company believes are reasonable. The pro forma financial information should be read in conjunction with the Company’s unaudited condensed consolidated financial statements included in its Form 10-Q for the quarterly period ended September 30, 2006 and the Company’s consolidated financial statements included in its Forms 10-K for the year ended December 31, 2005.
HUNTSMAN CORPORATION AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
AS OF SEPTEMBER 30, 2006
(In Millions, Except Share and Per Share Amounts)
|
|
|
Huntsman |
|
Pro Forma |
|
|
|
|||
|
|
|
Corporation |
|
Adjustments |
|
Pro Forma |
|
|||
|
ASSETS |
|
|
|
|
|
|
|
|||
|
Current assets: |
|
|
|
|
|
|
|
|||
|
Cash and cash equivalents |
|
$ |
245.8 |
|
$ |
628.5 |
(a) |
$ |
874.3 |
|
|
Accounts receivable, net |
|
1,398.0 |
|
|
|
1,398.0 |
|
|||
|
Accounts receivable from affiliates |
|
17.4 |
|
|
|
17.4 |
|
|||
|
Inventories, net |
|
1,422.2 |
|
|
|
1,422.2 |
|
|||
|
Prepaid expenses |
|
73.0 |
|
|
|
73.0 |
|
|||
|
Deferred income taxes |
|
59.3 |
|
0.5 |
(b) |
59.8 |
|
|||
|
Other current assets |
|
134.2 |
|
|
|
134.2 |
|
|||
|
Current assets held for sale |
|
401.9 |
|
(401.9 |
)(c) |
— |
|
|||
|
Total current assets |
|
3,751.8 |
|
227.1 |
|
3,978.9 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Property plant and equipment, net |
|
3,942.1 |
|
|
|
3,942.1 |
|
|||
|
Investment in unconsolidated affiliates |
|
199.7 |
|
|
|
199.7 |
|
|||
|
Intangible assets, net |
|
194.9 |
|
|
|
194.9 |
|
|||
|
Goodwill |
|
91.3 |
|
|
|
91.3 |
|
|||
|
Deferred income taxes |
|
120.6 |
|
2.3 |
(b) |
122.9 |
|
|||
|
Other noncurrent assets |
|
471.9 |
|
|
|
471.9 |
|
|||
|
Noncurrent assets held for sale |
|
630.4 |
|
(630.4 |
)(c) |
— |
|
|||
|
Total assets |
|
$ |
9,402.7 |
|
$ |
(401.0 |
) |
$ |
9,001.7 |
|
|
|
|
|
|
|
|
|
|
|||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|||
|
Current liabilities: |
|
|
|
|
|
|
|
|||
|
Accounts payable |
|
$ |
1,046.8 |
|
|
|
$ |
1,046.8 |
|
|
|
Accrued liabilities |
|
601.3 |
|
1.7 |
(d) |
603.0 |
|
|||
|
Deferred income taxes |
|
24.3 |
|
|
|
24.3 |
|
|||
|
Current portion of long-term debt |
|
226.8 |
|
|
|
226.8 |
|
|||
|
Current liabilities held for sale |
|
323.2 |
|
(323.2 |
)(c) |
— |
|
|||
|
Total current liabilities |
|
2,222.4 |
|
(321.5 |
) |
1,900.9 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Long-term debt |
|
4,099.1 |
|
|
|
4,099.1 |
|
|||
|
Deferred income taxes |
|
207.7 |
|
(13.0 |
)(b) |
194.7 |
|
|||
|
Other noncurrent liabilities |
|
851.5 |
|
6.8 |
(e) |
858.3 |
|
|||
|
Noncurrent liabilities held for sale |
|
74.4 |
|
(74.4 |
)(c) |
— |
|
|||
|
Total liabilities |
|
7,455.1 |
|
(402.1 |
) |
7,053.0 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Minority interests |
|
29.5 |
|
|
|
29.5 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|||
|
Common stock |
|
2.2 |
|
|
|
2.2 |
|
|||
|
Mandatory convertible preferred stock |
|
287.5 |
|
|
|
287.5 |
|
|||
|
Additional paid-in capital |
|
2,795.4 |
|
1.0 |
(d) |
2,796.4 |
|
|||
|
Unearned stock-based compensation |
|
(14.9 |
) |
|
|
(14.9 |
) |
|||
|
Accumulated deficit |
|
(1,258.8 |
) |
24.8 |
(f) |
(1,234.0 |
) |
|||
|
Accumulated other comprehensive income |
|
106.7 |
|
(24.7 |
)(c) |
82.0 |
|
|||
|
Total stockholders’ equity |
|
1,918.1 |
|
1.1 |
|
1,919.2 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Total liabilities and stockholders’ equity |
|
$ |
9,402.7 |
|
$ |
(401.0 |
) |
$ |
9,001.7 |
|
Notes to Pro Forma Adjustments:
(a) Reflects the purchase consideration of $685 million, less adjustments relating to working capital, investment in the Company’s low density polyethylene plant currently under construction in Wilton, U.K., and unfunded pension liabilities, all as of September 30, 2006.
(b) Reflects the deferred income taxes associated with the sale transaction.
(c) Reflects the disposition of the Huntsman European base chemicals and polymers business.
(d) Reflects additional compensation related to the sale transaction.
(e) Reflects accrued costs associated with the sale transaction.
(f) Reflects the preliminary gain on the sale transaction, net of taxes.
HUNTSMAN CORPORATION AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
YEAR ENDED DECEMBER 31, 2005
(In Millions, Except Per Share Amounts)
|
|
|
Huntsman |
|
Pro Forma |
|
|
|
|||
|
|
|
Corporation |
|
Adjustments (a) |
|
Pro Forma |
|
|||
|
Revenues |
|
$ |
12,961.6 |
|
$ |
(2,284.7 |
) |
$ |
10,676.9 |
|
|
|
|
|
|
|
|
|
|
|||
|
Cost of goods sold |
|
11,209.5 |
|
(2,148.0 |
) |
9,061.5 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Gross profit |
|
1,752.1 |
|
(136.7 |
) |
1,615.4 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Operating expenses: |
|
|
|
|
|
|
|
|||
|
Selling, general and administrative |
|
676.9 |
|
(16.3 |
) |
660.6 |
|
|||
|
Research and development |
|
95.5 |
|
|
|
95.5 |
|
|||
|
Other operating expense |
|
42.2 |
|
(12.0 |
) |
30.2 |
|
|||
|
Restructuring, impairment and plant closing costs |
|
123.6 |
|
(9.5 |
) |
114.1 |
|
|||
|
Total expenses |
|
938.2 |
|
(37.8 |
) |
900.4 |
|
|||
|
Operating income |
|
813.9 |
|
(98.9 |
) |
715.0 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Interest expense, net |
|
(426.6 |
) |
|
|
(426.6 |
) |
|||
|
Loss on accounts receivable securitization program |
|
(10.7 |
) |
1.7 |
|
(9.0 |
) |
|||
|
Equity in income of unconsolidated affiliates |
|
8.2 |
|
|
|
8.2 |
|
|||
|
Loss on early extinguishment of debt |
|
(322.5 |
) |
|
|
(322.5 |
) |
|||
|
Other expense |
|
(0.1 |
) |
|
|
(0.1 |
) |
|||
|
Income (loss) from continuing operations before income taxes and minority interest |
|
62.2 |
|
(97.2 |
) |
(35.0 |
) |
|||
|
|
|
|
|
|
|
|
|
|||
|
Income tax (expense) benefit |
|
(23.5 |
) |
29.6 |
|
6.1 |
|
|||
|
Minority interest in subsidiaries’ income |
|
(1.7 |
) |
|
|
(1.7 |
) |
|||
|
Income (loss) from continuing operations |
|
$ |
37.0 |
|
$ |
(67.6 |
) |
$ |
(30.6 |
) |
|
|
|
|
|
|
|
|
|
|||
|
Basic and diluted loss per share: |
|
|
|
|
|
|
|
|||
|
Loss from continuing operations |
|
$ |
(0.03 |
) |
$ |
(0.30 |
) |
$ |
(0.33 |
) |
|
|
|
|
|
|
|
|
|
|||
|
Weighted average shares |
|
220.5 |
|
|
|
220.5 |
|
|||
Notes to Pro Forma Adjustments:
(a) Reflects the disposition of the Huntsman European base chemicals and polymers business’ operations as a result of the sale transaction.
NOTE: The above pro forma statement of operations does not reflect the preliminary gain on the sale of the Business, net of taxes, the pre-tax impairment loss recorded in the third quarter of 2006 of $181.2 million, or the reduction to interest expense resulting from the use of the sales proceeds. In addition, the Company expects to incur pre-tax charges for pension settlements in the first quarter of 2007 of approximately $28 million.
HUNTSMAN CORPORATION AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
YEAR ENDED DECEMBER 31, 2004
(In Millions, Except Per Share Amounts)
|
|
|
Huntsman |
|
Pro Forma |
|
|
|
|||
|
|
|
Corporation |
|
Adjustments (a) |
|
Pro Forma |
|
|||
|
Revenues |
|
$ |
11,426.4 |
|
$ |
(1,863.9 |
) |
$ |
9,562.5 |
|
|
|
|
|
|
|
|
|
|
|||
|
Cost of goods sold |
|
10,048.0 |
|
(1,689.3 |
) |
8,358.7 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Gross profit |
|
1,378.4 |
|
(174.6 |
) |
1,203.8 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Operating expenses: |
|
|
|
|
|
|
|
|||
|
Selling, general and administrative |
|
655.8 |
|
(17.0 |
) |
638.8 |
|
|||
|
Research and development |
|
96.2 |
|
|
|
96.2 |
|
|||
|
Other operating income |
|
(81.1 |
) |
4.1 |
|
(77.0 |
) |
|||
|
Restructuring, impairment and plant closing costs |
|
299.3 |
|
(16.4 |
) |
282.9 |
|
|||
|
Total expenses |
|
970.2 |
|
(29.3 |
) |
940.9 |
|
|||
|
Operating income |
|
408.2 |
|
(145.3 |
) |
262.9 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Interest expense, net |
|
(612.6 |
) |
|
|
(612.6 |
) |
|||
|
Loss on accounts receivable securitization program |
|
(15.6 |
) |
2.3 |
|
(13.3 |
) |
|||
|
Equity in income of unconsolidated affiliates |
|
4.0 |
|
|
|
4.0 |
|
|||
|
Loss on early extinguishment of debt |
|
(25.6 |
) |
|
|
(25.6 |
) |
|||
|
Other expense |
|
(0.2 |
) |
|
|
(0.2 |
) |
|||
|
Loss from continuing operations before income taxes and minority interest |
|
(241.8 |
) |
(143.0 |
) |
(384.8 |
) |
|||
|
|
|
|
|
|
|
|
|
|||
|
Income tax benefit |
|
29.1 |
|
42.9 |
|
72.0 |
|
|||
|
Minority interest in subsidiaries’ income |
|
(7.2 |
) |
|
|
(7.2 |
) |
|||
|
Loss from continuing operations |
|
$ |
(219.9 |
) |
$ |
(100.1 |
) |
$ |
(320.0 |
) |
|
|
|
|
|
|
|
|
|
|||
|
Basic and diluted loss per share: |
|
|
|
|
|
|
|
|||
|
Loss from continuing operations |
|
$ |
(1.40 |
) |
$ |
(0.45 |
) |
$ |
(1.85 |
) |
|
|
|
|
|
|
|
|
|
|||
|
Weighted average shares |
|
220.5 |
|
|
|
220.5 |
|
|||
Notes to Pro Forma Adjustments:
(a) Reflects the disposition of the Huntsman European base chemicals and polymers business’ operations as a result of the sale transaction.
NOTE: The above pro forma statement of operations does not reflect the preliminary gain on the sale of the Business, net of taxes, the pre-tax impairment loss recorded in the third quarter of 2006 of $181.2 million, or the reduction to interest expense resulting from the use of the sales proceeds. In addition, the Company expects to incur pre-tax charges for pension settlements in the first quarter of 2007 of approximately $28 million.
HUNTSMAN CORPORATION AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
YEAR ENDED DECEMBER 31, 2003
(In Millions, Except Per Share Amounts)
|
|
|
Huntsman |
|
Pro Forma |
|
|
|
|||
|
|
|
Corporation |
|
Adjustments (a) |
|
Pro Forma |
|
|||
|
Revenues |
|
$ |
7,018.6 |
|
$ |
(829.7 |
) |
$ |
6,188.9 |
|
|
|
|
|
|
|
|
|
|
|||
|
Cost of goods sold |
|
6,334.9 |
|
(804.5 |
) |
5,530.4 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Gross profit |
|
683.7 |
|
(25.2 |
) |
658.5 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Operating expenses: |
|
|
|
|
|
|
|
|||
|
Selling, general and administrative |
|
444.1 |
|
(14.7 |
) |
429.4 |
|
|||
|
Research and development |
|
77.6 |
|
|
|
77.6 |
|
|||
|
Other operating income |
|
(55.0 |
) |
2.4 |
|
(52.6 |
) |
|||
|
Restructuring, impairment and plant closing costs |
|
37.9 |
|
|
|
37.9 |
|
|||
|
Total expenses |
|
504.6 |
|
(12.3 |
) |
492.3 |
|
|||
|
Operating income |
|
179.1 |
|
(12.9 |
) |
166.2 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Interest expense, net |
|
(409.1 |
) |
|
|
(409.1 |
) |
|||
|
Loss on accounts receivable securitization program |
|
(20.4 |
) |
2.2 |
|
(18.2 |
) |
|||
|
Equity in losses of unconsolidated affiliates |
|
(37.5 |
) |
|
|
(37.5 |
) |
|||
|
Loss from continuing operations before income taxes and minority interest |
|
(287.9 |
) |
(10.7 |
) |
(298.6 |
) |
|||
|
|
|
|
|
|
|
|
|
|||
|
Income tax expense |
|
(30.8 |
) |
3.2 |
|
(27.6 |
) |
|||
|
Minority interest in subsidiaries’ loss |
|
1.5 |
|
|
|
1.5 |
|
|||
|
Loss from continuing operations |
|
$ |
(317.2 |
) |
$ |
(7.5 |
) |
$ |
(324.7 |
) |
|
|
|
|
|
|
|
|
|
|||
|
Basic and diluted loss per share: |
|
|
|
|
|
|
|
|||
|
Loss from continuing operations |
|
$ |
(1.78 |
) |
$ |
(0.03 |
) |
$ |
(1.81 |
) |
|
|
|
|
|
|
|
|
|
|||
|
Weighted average shares |
|
220.5 |
|
|
|
220.5 |
|
|||
Notes to Pro Forma Adjustments:
(a) Reflects the disposition of the Huntsman European base chemicals and polymers business’ operations as a result of the sale transaction. The results of the Huntsman European base chemicals and polymers business were not consolidated in Huntsman Corporation’s financial statements prior to May 2003.
NOTE: The above pro forma statement of operations does not reflect the preliminary gain on the sale of the Business, net of taxes, the pre-tax impairment loss recorded in the third quarter of 2006 of $181.2 million, or the reduction to interest expense resulting from the use of the sales proceeds. In addition, the Company expects to incur pre-tax charges for pension settlements in the first quarter of 2007 of approximately $28 million.
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
AS OF SEPTEMBER 30, 2006
(Dollars in Millions)
|
|
|
Huntsman |
|
|
|
|
|
|||
|
|
|
International |
|
Pro Forma |
|
|
|
|||
|
|
|
LLC |
|
Adjustments |
|
Pro Forma |
|
|||
|
ASSETS |
|
|
|
|
|
|
|
|||
|
Current assets: |
|
|
|
|
|
|
|
|||
|
Cash and cash equivalents |
|
$ |
229.5 |
|
$ |
628.5 |
(a) |
$ |
858.0 |
|
|
Accounts receivable, net |
|
1,398.0 |
|
|
|
1,398.0 |
|
|||
|
Accounts receivable from affiliates |
|
22.9 |
|
|
|
22.9 |
|
|||
|
Inventories, net |
|
1,422.2 |
|
|
|
1,422.2 |
|
|||
|
Prepaid expenses |
|
72.1 |
|
|
|
72.1 |
|
|||
|
Deferred income taxes |
|
56.8 |
|
0.5 |
(b) |
57.3 |
|
|||
|
Other current assets |
|
120.0 |
|
|
|
120.0 |
|
|||
|
Current assets held for sale |
|
401.9 |
|
(401.9 |
)(c) |
— |
|
|||
|
Total current assets |
|
3,723.4 |
|
227.1 |
|
3,950.5 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Property plant and equipment, net |
|
3,707.8 |
|
|
|
3,707.8 |
|
|||
|
Investment in unconsolidated affiliates |
|
199.7 |
|
|
|
199.7 |
|
|||
|
Intangible assets, net |
|
200.0 |
|
|
|
200.0 |
|
|||
|
Goodwill |
|
91.3 |
|
|
|
91.3 |
|
|||
|
Deferred income taxes |
|
120.6 |
|
2.3 |
(b) |
122.9 |
|
|||
|
Other noncurrent assets |
|
561.0 |
|
|
|
561.0 |
|
|||
|
Noncurrent assets held for sale |
|
599.1 |
|
(599.1 |
)(c) |
— |
|
|||
|
Total assets |
|
$ |
9,202.9 |
|
$ |
(369.7 |
) |
$ |
8,833.2 |
|
|
|
|
|
|
|
|
|
|
|||
|
LIABILITIES AND MEMBER’S EQUITY |
|
|
|
|
|
|
|
|||
|
Current liabilities: |
|
|
|
|
|
|
|
|||
|
Accounts payable |
|
$ |
1,046.8 |
|
|
|
$ |
1,046.8 |
|
|
|
Accounts payable to affiliates |
|
4.6 |
|
|
|
4.6 |
|
|||
|
Accrued liabilities |
|
585.6 |
|
1.7 |
(d) |
587.3 |
|
|||
|
Deferred income taxes |
|
32.9 |
|
|
|
32.9 |
|
|||
|
Current portion of long-term debt |
|
226.6 |
|
|
|
226.6 |
|
|||
|
Current liabilities held for sale |
|
314.6 |
|
(314.6 |
)(c) |
— |
|
|||
|
Total current liabilities |
|
2,211.1 |
|
(312.9 |
) |
1,898.2 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Long-term debt |
|
4,099.1 |
|
|
|
4,099.1 |
|
|||
|
Deferred income taxes |
|
194.4 |
|
(13.0 |
)(b) |
181.4 |
|
|||
|
Other noncurrent liabilities |
|
892.5 |
|
6.8 |
(e) |
899.3 |
|
|||
|
Noncurrent liabilities held for sale |
|
51.7 |
|
(51.7 |
)(c) |
— |
|
|||
|
Total liabilities |
|
7,448.8 |
|
(370.8 |
) |
7,078.0 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Minority interests |
|
29.5 |
|
|
|
29.5 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Member’s equity: |
|
|
|
|
|
|
|
|||
|
Member’s equity |
|
2,806.8 |
|
1.0 |
(d) |
2,807.8 |
|
|||
|
Accumulated deficit |
|
(1,155.2 |
) |
24.8 |
(f) |
(1,130.4 |
) |
|||
|
Accumulated other comprehensive income |
|
73.0 |
|
(24.7 |
)(c) |
48.3 |
|
|||
|
Total member’s equity |
|
1,724.6 |
|
1.1 |
|
1,725.7 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Total liabilities and member’s equity |
|
$ |
9,202.9 |
|
$ |
(369.7 |
) |
$ |
8,833.2 |
|
Notes to Pro Forma Adjustments:
(a) Reflects the purchase consideration of $685 million, less adjustments relating to working capital, investment in the Company’s low density polyethylene plant currently under construction in Wilton, U.K., and unfunded pension liabilities, all as of September 30, 2006.
(b) Reflects the deferred income taxes associated with the sale transaction.
(c) Reflects the disposition of the Huntsman European base chemicals and polymers business.
(d) Reflects additional compensation related to the sale transaction.
(e) Reflects accrued costs associated with the sale transaction.
(f) Reflects the preliminary gain on the sale transaction, net of taxes.
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
YEAR ENDED DECEMBER 31, 2005
(Dollars in Millions)
|
|
|
Huntsman |
|
|
|
|
|
|||
|
|
|
International |
|
Pro Forma |
|
|
|
|||
|
|
|
LLC |
|
Adjustments (a) |
|
Pro Forma |
|
|||
|
Revenues |
|
$ |
12,961.6 |
|
$ |
(2,284.7 |
) |
$ |
10,676.9 |
|
|
|
|
|
|
|
|
|
|
|||
|
Cost of goods sold |
|
11,190.4 |
|
(2,146.5 |
) |
9,043.9 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Gross profit |
|
1,771.2 |
|
(138.2 |
) |
1,633.0 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Operating expenses: |
|
|
|
|
|
|
|
|||
|
Selling, general and administrative |
|
677.7 |
|
(16.3 |
) |
661.4 |
|
|||
|
Research and development |
|
95.5 |
|
|
|
95.5 |
|
|||
|
Other operating expense |
|
42.2 |
|
(12.0 |
) |
30.2 |
|
|||
|
Restructuring, impairment and plant closing costs |
|
123.6 |
|
(9.5 |
) |
114.1 |
|
|||
|
Total expenses |
|
939.0 |
|
(37.8 |
) |
901.2 |
|
|||
|
Operating income |
|
832.2 |
|
(100.4 |
) |
731.8 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Interest expense, net |
|
(425.6 |
) |
|
|
(425.6 |
) |
|||
|
Loss on accounts receivable securitization program |
|
(10.7 |
) |
1.7 |
|
(9.0 |
) |
|||
|
Equity in income of unconsolidated affiliates |
|
8.2 |
|
|
|
8.2 |
|
|||
|
Loss on early extinguishment of debt |
|
(167.3 |
) |
|
|
(167.3 |
) |
|||
|
Other expense |
|
(0.2 |
) |
|
|
(0.2 |
) |
|||
|
Income from continuing operations before income taxes and minority interest |
|
236.6 |
|
(98.7 |
) |
137.9 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Income tax expense |
|
(42.8 |
) |
29.6 |
|
(13.2 |
) |
|||
|
Minority interest in subsidiaries’ income |
|
(1.7 |
) |
|
|
(1.7 |
) |
|||
|
Income from continuing operations |
|
$ |
192.1 |
|
(69.1 |
) |
$ |
123.0 |
|
|
Notes to Pro Forma Adjustments:
(a) Reflects the disposition of the Huntsman European base chemicals and polymers business’ operations as a result of the sale transaction.
NOTE: The above pro forma statement of operations does not reflect the preliminary gain on the sale of the Business, net of taxes, the pre-tax impairment loss recorded in the third quarter of 2006 of $161.2 million, or the reduction to interest expense resulting from the use of the sales proceeds. In addition, the Company expects to incur pre-tax charges for pension settlements in the first quarter of 2007 of approximately $28 million.
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
YEAR ENDED DECEMBER 31, 2004
(Dollars in Millions)
|
|
|
Huntsman |
|
|
|
|
|
|||
|
|
|
International |
|
Pro Forma |
|
|
|
|||
|
|
|
LLC |
|
Adjustments (a) |
|
Pro Forma |
|
|||
|
Revenues |
|
$ |
11,426.4 |
|
$ |
(1,863.9 |
) |
$ |
9,562.5 |
|
|
|
|
|
|
|
|
|
|
|||
|
Cost of goods sold |
|
10,025.1 |
|
(1,687.8 |
) |
8,337.3 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Gross profit |
|
1,401.3 |
|
(176.1 |
) |
1,225.2 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Operating expenses: |
|
|
|
|
|
|
|
|||
|
Selling, general and administrative |
|
652.5 |
|
(17.0 |
) |
635.5 |
|
|||
|
Research and development |
|
96.1 |
|
|
|
96.1 |
|
|||
|
Other operating income |
|
(81.0 |
) |
4.1 |
|
(76.9 |
) |
|||
|
Restructuring, impairment and plant closing costs |
|
299.3 |
|
(16.4 |
) |
282.9 |
|
|||
|
Total expenses |
|
966.9 |
|
(29.3 |
) |
937.6 |
|
|||
|
Operating income |
|
434.4 |
|
(146.8 |
) |
287.6 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Interest expense, net |
|
(592.6 |
) |
|
|
(592.6 |
) |
|||
|
Loss on accounts receivable securitization program |
|
(15.6 |
) |
2.3 |
|
(13.3 |
) |
|||
|
Equity in income of unconsolidated affiliates |
|
4.0 |
|
|
|
4.0 |
|
|||
|
Loss on early extinguishment of debt |
|
(25.6 |
) |
|
|
(25.6 |
) |
|||
|
Other expense |
|
(0.2 |
) |
|
|
(0.2 |
) |
|||
|
Loss from continuing operations before income taxes and minority interest |
|
(195.6 |
) |
(144.5 |
) |
(340.1 |
) |
|||
|
|
|
|
|
|
|
|
|
|||
|
Income tax benefit |
|
22.9 |
|
43.4 |
|
66.3 |
|
|||
|
Minority interest in subsidiaries’ income |
|
(7.2 |
) |
|
|
(7.2 |
) |
|||
|
Loss from continuing operations |
|
$ |
(179.9 |
) |
(101.1 |
) |
$ |
(281.0 |
) |
|
Notes to Pro Forma Adjustments:
(a) Reflects the disposition of the Huntsman European base chemicals and polymers business’ operations as a result of the sale transaction.
NOTE: The above pro forma statement of operations does not reflect the preliminary gain on the sale of the Business, net of taxes, the pre-tax impairment loss recorded in the third quarter of 2006 of $161.2 million, or the reduction to interest expense resulting from the use of the sales proceeds. In addition, the Company expects to incur pre-tax charges for pension settlements in the first quarter of 2007 of approximately $28 million.
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
YEAR ENDED DECEMBER 31, 2003
(Dollars in Millions)
Notes to Pro Forma Adjustments:
(a) Reflects the disposition of the Huntsman European base chemicals and polymers business’ operations as a result of the sale transaction.
NOTE: The above pro forma statement of operations does not reflect the preliminary gain on the sale of the Business, net of taxes, the pre-tax impairment loss recorded in the third quarter of 2006 of $161.2 million, or the reduction to interest expense resulting from the use of the sales proceeds. In addition, the Company expects to incur pre-tax charges for pension settlements in the first quarter of 2007 of approximately $28 million.