Exhibit 99.2
Summary of Unaudited Pro Forma Financial Information
The following unaudited financial information reflects the pro forma condensed consolidated balance sheets as of September 30, 2019 and the pro forma consolidated statements of operations for the years ended December 31, 2018, 2017 and 2016 for each of Huntsman Corporation and Huntsman International LLC (collectively, the “Company”), giving effect to the sale of its chemical intermediates businesses, which included PO/MTBE, and its surfactants businesses (collectively, the “Chemical Intermediates Businesses”). The condensed consolidated statements of operations for the nine months ended September 30, 2019, as included in the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2019, already reflect the results of operations of the Chemical Intermediates Businesses as discontinued operations. Accordingly, no pro forma condensed consolidated statements of operations for the nine months ended September 30, 2019 are included herein.
The unaudited pro forma consolidated statements of operations for the years ended December 31, 2018, 2017 and 2016 give effect to the sale as if the sale transaction occurred at the beginning of the periods presented. The unaudited pro forma condensed consolidated balance sheets as of September 30, 2019 assume the sale occurred on September 30, 2019.
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 condensed consolidated balance sheets and consolidated 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, 2019 and the Company’s consolidated financial statements included in its Form 10-K for the year ended December 31, 2018.
HUNTSMAN CORPORATION AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
AS OF SEPTEMBER 30, 2019
(In millions)
| Huntsman | Pro Forma | |||||||||
| Corporation | Adjustments | Pro Forma | ||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 418 | $ | 1,895 | (2) | $ | 2,313 | |||
| Accounts and notes receivable, net | 1,078 | 1,078 | ||||||||
| Accounts receivable from affiliates | 12 | 12 | ||||||||
| Inventories | 961 | 961 | ||||||||
| Prepaid expenses | 53 | 53 | ||||||||
| Other current assets | 99 | 99 | ||||||||
| Current assets held for sale | 1,108 | (1,108 | )(1) | - | ||||||
| Total current assets | 3,729 | 787 | 4,516 | |||||||
| Property plant and equipment, net | 2,324 | 2,324 | ||||||||
| Investment in unconsolidated affiliates | 454 | 454 | ||||||||
| Intangible assets, net | 202 | 202 | ||||||||
| Goodwill | 274 | 274 | ||||||||
| Deferred income taxes | 309 | 309 | ||||||||
| Notes receivable from affiliate | 34 | 34 | ||||||||
| Operating lease right-of-use assets | 356 | 356 | ||||||||
| Other noncurrent assets | 433 | 433 | ||||||||
| Total assets | $ | 8,115 | $ | 787 | $ | 8,902 | ||||
| LIABILITIES AND EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 715 | $ | 715 | ||||||
| Accounts payable to affiliates | 29 | 29 | ||||||||
| Accrued liabilities | 406 | $ | 400 | (4) | 806 | |||||
| Current portion of debt | 132 | 132 | ||||||||
| Current operating lease liabilities | 37 | 37 | ||||||||
| Current liabilities held for sale | 586 | (586 | )(1) | - | ||||||
| Total current liabilities | 1,905 | (186 | ) | 1,719 | ||||||
| Long-term debt | 2,204 | 2,204 | ||||||||
| Deferred income taxes | 198 | 100 | (4) | 298 | ||||||
| Noncurrent operating lease liabilities | 349 | 349 | ||||||||
| Other noncurrent liabilities | 821 | 821 | ||||||||
| Total liabilities | 5,477 | (86 | ) | 5,391 | ||||||
| Equity | ||||||||||
| Huntsman Corporation stockholders’ equity: | ||||||||||
| Common stock | 3 | 3 | ||||||||
| Additional paid-in capital | 4,009 | 4,009 | ||||||||
| Treasury stock | (623 | ) | (623 | ) | ||||||
| Unearned stock-based compensation | (21 | ) | (21 | ) | ||||||
| Retained earnings | 424 | 825 | (3) | 1,249 | ||||||
| Accumulated other comprehensive loss | (1,310 | ) | 48 | (1) | (1,262 | ) | ||||
| Total Huntsman Corporation stockholders’ equity | 2,482 | 873 | 3,355 | |||||||
| Noncontrolling interests in subsidiaries | 156 | 156 | ||||||||
| Total equity | 2,638 | 873 | 3,511 | |||||||
| Total liabilities and equity | $ | 8,115 | $ | 787 | $ | 8,902 | ||||
| (1) | Reflects the disposition of the Chemical Intermediates Businesses as a result of the sale transaction. | |
| (2) | Reflects receipt of the sale consideration, less transaction costs. | |
| (3) | Reflects the preliminary gain on the sale transaction, net of taxes. | |
| (4) | Reflects the estimated current and deferred income taxes associated with the gain recognized upon closing of the sale transaction. |
HUNTSMAN CORPORATION AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
YEAR ENDED DECEMBER 31, 2018
(In Millions, Except Per Share Amounts)
| Huntsman | Pro Forma | |||||||||
| Corporation | Adjustments | Pro Forma | ||||||||
| Revenues: | ||||||||||
| Trade sales, services and fees, net | $ | 9,220 | $ | (1,769 | )(1) | $ | 7,451 | |||
| Related party sales | 159 | (6 | )(1) | 153 | ||||||
| Total revenues | 9,379 | (1,775 | ) | 7,604 | ||||||
| Cost of goods sold | 7,354 | (1,514 | )(1) | 5,840 | ||||||
| Gross profit | 2,025 | (261 | ) | 1,764 | ||||||
| Operating expenses: | ||||||||||
| Selling, general and administrative | 830 | (41 | )(1) | 789 | ||||||
| Research and development | 152 | (7 | )(1) | 145 | ||||||
| Restructuring, impairment and plant closing credits | (5 | ) | (2 | )(1) | (7 | ) | ||||
| Merger costs | 2 | 2 | ||||||||
| Other operating expense, net | 8 | 8 | ||||||||
| Total operating expenses | 987 | (50 | ) | 937 | ||||||
| Operating income | 1,038 | (211 | ) | 827 | ||||||
| Interest expense | (115 | ) | (115 | ) | ||||||
| Equity in income of investment in unconsolidated affiliates | 55 | 55 | ||||||||
| Fair value adjustments to Venator investment | (62 | ) | (62 | ) | ||||||
| Loss on early extinguishment of debt | (3 | ) | (3 | ) | ||||||
| Other income, net | 29 | 3 | (1) | 32 | ||||||
| Income from continuing operations before income taxes | 942 | (208 | ) | 734 | ||||||
| Income tax expense | (97 | ) | 52 | (2) | (45 | ) | ||||
| Income from continuing operations | $ | 845 | $ | (156 | ) | $ | 689 | |||
| Basic income per share: | ||||||||||
| Income from continuing operations attributable to Huntsman Corporation common stockholders | $ | 3.21 | $ | (0.66 | )(3) | $ | 2.55 | |||
| Weighted average shares | 238.1 | 238.1 | ||||||||
| Diluted income per share: | ||||||||||
| Income from continuing operations attributable to Huntsman Corporation common stockholders | $ | 3.16 | $ | (0.65 | )(3) | $ | 2.51 | |||
| Weighted average shares | 241.6 | 241.6 | ||||||||
| (1) | Reflects the removal of results of operations related to the disposition of the Chemical Intermediates Businesses as a result of the sale transaction. | |
| (2) | Reflects the tax effect of the pro forma adjustments. | |
| (3) | Reflects the basic and diluted per share impact of the sale transaction. |
NOTE: The above pro forma statement of operations does not reflect the net gain on the sale transaction.
HUNTSMAN CORPORATION AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
YEAR ENDED DECEMBER 31, 2017
(In Millions, Except Per Share Amounts)
| Huntsman | Pro Forma | |||||||||
| Corporation | Adjustments | Pro Forma | ||||||||
| Revenues: | ||||||||||
| Trade sales, services and fees, net | $ | 8,208 | $ | (1,524 | )(1) | $ | 6,684 | |||
| Related party sales | 150 | 11 | (1) | 161 | ||||||
| Total revenues | 8,358 | (1,513 | ) | 6,845 | ||||||
| Cost of goods sold | 6,552 | (1,358 | )(1) | 5,194 | ||||||
| Gross profit | 1,806 | (155 | ) | 1,651 | ||||||
| Operating expenses: | ||||||||||
| Selling, general and administrative | 798 | (39 | )(1) | 759 | ||||||
| Research and development | 138 | (6 | )(1) | 132 | ||||||
| Restructuring, impairment and plant closing costs | 20 | (1 | )(1) | 19 | ||||||
| Merger costs | 28 | 28 | ||||||||
| Other operating income, net | (23 | ) | 7 | (1) | (16 | ) | ||||
| Total operating expenses | 961 | (39 | ) | 922 | ||||||
| Operating income | 845 | (116 | ) | 729 | ||||||
| Interest expense | (165 | ) | (165 | ) | ||||||
| Equity in income of investment in unconsolidated affiliates | 13 | 13 | ||||||||
| Loss on early extinguishment of debt | (54 | ) | (54 | ) | ||||||
| Other income, net | 8 | 8 | ||||||||
| Income from continuing operations before income taxes | 647 | (116 | ) | 531 | ||||||
| Income tax expense | (64 | ) | 44 | (2) | (20 | ) | ||||
| Income from continuing operations | $ | 583 | $ | (72 | ) | $ | 511 | |||
| Basic income per share: | ||||||||||
| Income from continuing operations attributable to Huntsman Corporation common stockholders | $ | 2.01 | $ | (0.30 | )(3) | $ | 1.71 | |||
| Weighted average shares | 238.4 | 238.4 | ||||||||
| Diluted income per share: | ||||||||||
| Income from continuing operations attributable to Huntsman Corporation common stockholders | $ | 1.96 | $ | (0.30 | )(3) | $ | 1.66 | |||
| Weighted average shares | 243.9 | 243.9 | ||||||||
| (1) | Reflects the removal of results of operations related to the disposition of the Chemical Intermediates Businesses as a result of the sale transaction. | |
| (2) | Reflects the tax effect of the pro forma adjustments. | |
| (3) | Reflects the basic and diluted per share impact of the sale transaction. |
NOTE: The above pro forma statement of operations does not reflect the net gain on the sale transaction.
HUNTSMAN CORPORATION AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
YEAR ENDED DECEMBER 31, 2016
(In Millions, Except Per Share Amounts)
| Huntsman | Pro Forma | |||||||||
| Corporation | Adjustments | Pro Forma | ||||||||
| Revenues: | ||||||||||
| Trade sales, services and fees, net | $ | 7,387 | $ | (1,369 | )(1) | $ | 6,018 | |||
| Related party sales | 131 | (3 | )(1) | 128 | ||||||
| Total revenues | 7,518 | (1,372 | ) | 6,146 | ||||||
| Cost of goods sold | 6,000 | (1,175 | )(1) | 4,825 | ||||||
| Gross profit | 1,518 | (197 | ) | 1,321 | ||||||
| Operating expenses: | ||||||||||
| Selling, general and administrative | 772 | (29 | )(1) | 743 | ||||||
| Research and development | 137 | (7 | )(1) | 130 | ||||||
| Restructuring, impairment and plant closing costs | 47 | (16 | )(1) | 31 | ||||||
| Other operating income, net | (101 | ) | 2 | (1) | (99 | ) | ||||
| Total operating expenses | 855 | (50 | ) | 805 | ||||||
| Operating income | 663 | (147 | ) | 516 | ||||||
| Interest expense | (203 | ) | (203 | ) | ||||||
| Equity in income of investment in unconsolidated affiliates | 5 | 5 | ||||||||
| Loss on early extinguishment of debt | (3 | ) | (3 | ) | ||||||
| Other income, net | 12 | 12 | ||||||||
| Income from continuing operations before income taxes | 474 | (147 | ) | 327 | ||||||
| Income tax expense | (109 | ) | 53 | (2) | (56 | ) | ||||
| Income from continuing operations | $ | 365 | $ | (94 | ) | $ | 271 | |||
| Basic income per share: | ||||||||||
| Income from continuing operations attributable to Huntsman Corporation common stockholders | $ | 1.41 | $ | (0.40 | )(3) | $ | 1.01 | |||
| Weighted average shares | 236.3 | 236.3 | ||||||||
| Diluted income per share: | ||||||||||
| Income from continuing operations attributable to Huntsman Corporation common stockholders | $ | 1.39 | $ | (0.39 | )(3) | $ | 1.00 | |||
| Weighted average shares | 239.6 | 239.6 | ||||||||
| (1) | Reflects the removal of results of operations related to the disposition of the Chemical Intermediates Businesses as a result of the sale transaction. | |
| (2) | Reflects the tax effect of the pro forma adjustments. | |
| (3) | Reflects the basic and diluted per share impact of the sale transaction. |
NOTE: The above pro forma statement of operations does not reflect the net gain on the sale transaction.
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
AS OF SEPTEMBER 30, 2019
(In millions)
| Huntsman | ||||||||||
| International | Pro Forma | |||||||||
| LLC | Adjustments | Pro Forma | ||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 417 | $ | 1,895 | (2) | $ | 2,312 | |||
| Accounts and notes receivable, net | 1,078 | 1,078 | ||||||||
| Accounts receivable from affiliates | 408 | 408 | ||||||||
| Inventories | 961 | 961 | ||||||||
| Prepaid expenses | 51 | 51 | ||||||||
| Other current assets | 102 | 102 | ||||||||
| Current assets held for sale | 1,108 | (1,108 | )(1) | - | ||||||
| Total current assets | 4,125 | 787 | 4,912 | |||||||
| Property plant and equipment, net | 2,324 | 2,324 | ||||||||
| Investment in unconsolidated affiliates | 454 | 454 | ||||||||
| Intangible assets, net | 202 | 202 | ||||||||
| Goodwill | 274 | 274 | ||||||||
| Deferred income taxes | 309 | 309 | ||||||||
| Notes receivable from affiliate | 34 | 34 | ||||||||
| Operating lease right-of-use assets | 356 | 356 | ||||||||
| Other noncurrent assets | 433 | 433 | ||||||||
| Total assets | $ | 8,511 | $ | 787 | $ | 9,298 | ||||
| LIABILITIES AND EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 714 | $ | 714 | ||||||
| Accounts payable to affiliates | 112 | 112 | ||||||||
| Accrued liabilities | 403 | $ | 400 | (4) | 803 | |||||
| Notes payable to affiliates | 100 | 100 | ||||||||
| Current portion of debt | 132 | 132 | ||||||||
| Current operating lease liabilities | 37 | 37 | ||||||||
| Current liabilities held for sale | 586 | (586 | )(1) | - | ||||||
| Total current liabilities | 2,084 | (186 | ) | 1,898 | ||||||
| Long-term debt | 2,204 | 2,204 | ||||||||
| Notes payable to affiliates | 291 | 291 | ||||||||
| Deferred income taxes | 195 | 100 | (4) | 295 | ||||||
| Noncurrent operating lease liabilities | 349 | 349 | ||||||||
| Other noncurrent liabilities | 813 | 813 | ||||||||
| Total liabilities | 5,936 | (86 | ) | 5,850 | ||||||
| Equity | ||||||||||
| Huntsman International LLC members’ equity: | ||||||||||
| Members’ equity | 3,673 | 3,673 | ||||||||
| Retained earnings | 47 | 825 | (3) | 872 | ||||||
| Accumulated other comprehensive loss | (1,301 | ) | 48 | (1) | (1,253 | ) | ||||
| Total Huntsman International LLC members’ equity | 2,419 | 873 | 3,292 | |||||||
| Noncontrolling interests in subsidiaries | 156 | 156 | ||||||||
| Total equity | 2,575 | 873 | 3,448 | |||||||
| Total liabilities and equity | $ | 8,511 | $ | 787 | $ | 9,298 | ||||
| (1) | Reflects the disposition of the Chemical Intermediates Businesses as a result of the sale transaction. |
| (2) | Reflects receipt of the sale consideration, less transaction costs. |
| (3) | Reflects the preliminary gain on the sale transaction, net of taxes. |
| (4) | Reflects the estimated current and deferred income taxes associated with the gain recognized upon closing of the sale transaction. |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
YEAR ENDED DECEMBER 31, 2018
(In Millions)
| Huntsman | ||||||||||
| International | Pro Forma | |||||||||
| LLC | Adjustments | Pro Forma | ||||||||
| Revenues: | ||||||||||
| Trade sales, services and fees, net | $ | 9,220 | $ | (1,769 | )(1) | $ | 7,451 | |||
| Related party sales | 159 | (6 | )(1) | 153 | ||||||
| Total revenues | 9,379 | (1,775 | ) | 7,604 | ||||||
| Cost of goods sold | 7,351 | (1,514 | )(1) | 5,837 | ||||||
| Gross profit | 2,028 | (261 | ) | 1,767 | ||||||
| Operating expenses: | ||||||||||
| Selling, general and administrative | 825 | (41 | )(1) | 784 | ||||||
| Research and development | 152 | (7 | )(1) | 145 | ||||||
| Restructuring, impairment and plant closing credits | (5 | ) | (2 | )(1) | (7 | ) | ||||
| Merger costs | 2 | 2 | ||||||||
| Other operating expense, net | 8 | 8 | ||||||||
| Total operating expenses | 982 | (50 | ) | 932 | ||||||
| Operating income | 1,046 | (211 | ) | 835 | ||||||
| Interest expense | (136 | ) | (136 | ) | ||||||
| Equity in income of investment in unconsolidated affiliates | 55 | 55 | ||||||||
| Fair value adjustments to Venator investment | (62 | ) | (62 | ) | ||||||
| Loss on early extinguishment of debt | (3 | ) | (3 | ) | ||||||
| Other income, net | 24 | 3 | (1) | 27 | ||||||
| Income from continuing operations before income taxes | 924 | (208 | ) | 716 | ||||||
| Income tax expense | (93 | ) | 52 | (2) | (41 | ) | ||||
| Income from continuing operations | $ | 831 | $ | (156 | ) | $ | 675 | |||
| (1) | Reflects the removal of results of operations related to the disposition of the Chemical Intermediates Businesses as a result of the sale transaction. |
| (2) | Reflects the tax effect of the pro forma adjustments. |
NOTE: The above pro forma statement of operations does not reflect the net gain on the sale transaction.
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
YEAR ENDED DECEMBER 31, 2017
(In Millions)
| Huntsman | ||||||||||
| International | Pro Forma | |||||||||
| LLC | Adjustments | Pro Forma | ||||||||
| Revenues: | ||||||||||
| Trade sales, services and fees, net | $ | 8,208 | $ | (1,524 | )(1) | $ | 6,684 | |||
| Related party sales | 150 | 11 | (1) | 161 | ||||||
| Total revenues | 8,358 | (1,513 | ) | 6,845 | ||||||
| Cost of goods sold | 6,546 | (1,358 | )(1) | 5,188 | ||||||
| Gross profit | 1,812 | (155 | ) | 1,657 | ||||||
| Operating expenses: | ||||||||||
| Selling, general and administrative | 793 | (39 | )(1) | 754 | ||||||
| Research and development | 138 | (6 | )(1) | 132 | ||||||
| Restructuring, impairment and plant closing costs | 20 | (1 | )(1) | 19 | ||||||
| Merger costs | 28 | 28 | ||||||||
| Other operating income, net | (23 | ) | 7 | (1) | (16 | ) | ||||
| Total operating expenses | 956 | (39 | ) | 917 | ||||||
| Operating income | 856 | (116 | ) | 740 | ||||||
| Interest expense | (181 | ) | (181 | ) | ||||||
| Equity in income of investment in unconsolidated affiliates | 13 | 13 | ||||||||
| Loss on early extinguishment of debt | (54 | ) | (54 | ) | ||||||
| Other income, net | 6 | 6 | ||||||||
| Income from continuing operations before income taxes | 640 | (116 | ) | 524 | ||||||
| Income tax expense | (61 | ) | 44 | (2) | (17 | ) | ||||
| Income from continuing operations | $ | 579 | $ | (72 | ) | $ | 507 | |||
| (1) | Reflects the removal of results of operations related to the disposition of the Chemical Intermediates Businesses as a result of the sale transaction. |
| (2) | Reflects the tax effect of the pro forma adjustments. |
NOTE: The above pro forma statement of operations does not reflect the net gain on the sale transaction.
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
YEAR ENDED DECEMBER 31, 2016
(In Millions)
| Huntsman | ||||||||||
| International | Pro Forma | |||||||||
| LLC | Adjustments | Pro Forma | ||||||||
| Revenues: | ||||||||||
| Trade sales, services and fees, net | $ | 7,387 | $ | (1,369 | )(1) | $ | 6,018 | |||
| Related party sales | 131 | (3 | )(1) | 128 | ||||||
| Total revenues | 7,518 | (1,372 | ) | 6,146 | ||||||
| Cost of goods sold | 5,993 | (1,175 | )(1) | 4,818 | ||||||
| Gross profit | 1,525 | (197 | ) | 1,328 | ||||||
| Operating expenses: | ||||||||||
| Selling, general and administrative | 768 | (29 | )(1) | 739 | ||||||
| Research and development | 137 | (7 | )(1) | 130 | ||||||
| Restructuring, impairment and plant closing costs | 47 | (16 | )(1) | 31 | ||||||
| Other operating income, net | (101 | ) | 2 | (1) | (99 | ) | ||||
| Total operating expenses | 851 | (50 | ) | 801 | ||||||
| Operating income | 674 | (147 | ) | 527 | ||||||
| Interest expense | (215 | ) | (215 | ) | ||||||
| Equity in income of investment in unconsolidated affiliates | 5 | 5 | ||||||||
| Loss on early extinguishment of debt | (3 | ) | (3 | ) | ||||||
| Other income, net | 14 | 14 | ||||||||
| Income from continuing operations before income taxes | 475 | (147 | ) | 328 | ||||||
| Income tax expense | (108 | ) | 53 | (2) | (55 | ) | ||||
| Income from continuing operations | $ | 367 | $ | (94 | ) | $ | 273 | |||
| (1) | Reflects the removal of results of operations related to the disposition of the Chemical Intermediates Businesses as a result of the sale transaction. |
| (2) | Reflects the tax effect of the pro forma adjustments. |
NOTE: The above pro forma statement of operations does not reflect the net gain on the sale transaction.