Huntsman Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATING FINANCIAL INFORMATION OF HUNTSMAN INTERNATIONAL LLC (UNAUDITED) (Tables)

CONDENSED CONSOLIDATING FINANCIAL INFORMATION OF HUNTSMAN INTERNATIONAL LLC (UNAUDITED) (Tables) (HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES)

9 Months Ended

Sep. 30, 2013

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES

Condensed consolidated financial information

CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED)

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED)
AS OF SEPTEMBER 30, 2013
(Dollars in Millions)

	Parent Company			Guarantors			Nonguarantors			Eliminations			Consolidated Huntsman International LLC

ASSETS
Current assets:
Cash and cash equivalents	$	124		$	—		$	254		$	—		$	378
Restricted cash		—			—			9			—			9
Accounts and notes receivable, net		49			153			1,471			—			1,673
Accounts receivable from affiliates		2,382			4,774			111			(6,981	)		286
Inventories		142			292			1,268			(7	)		1,695
Prepaid expenses		10			12			60			(16	)		66
Deferred income taxes		7			—			57			(13	)		51
Other current assets		285			5			209			(294	)		205

Total current assets		2,999			5,236			3,439			(7,311	)		4,363
Property, plant and equipment, net		422			914			2,338			1			3,675
Investment in unconsolidated affiliates		5,563			1,255			199			(6,743	)		274
Intangible assets, net		16			1			41			(1	)		57
Goodwill		(18	)		82			67			—			131
Deferred income taxes		224			—			237			(224	)		237
Notes receivable from affiliates		21			951			2			(973	)		1
Other noncurrent assets		63			183			206			(1	)		451

Total assets	$	9,290		$	8,622		$	6,529		$	(15,252	)	$	9,189

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	94		$	233		$	707		$	—		$	1,034
Accounts payable to affiliates		3,677			1,681			1,668			(6,981	)		45
Accrued liabilities		77			464			503			(311	)		733
Deferred income taxes		—			45			8			(15	)		38
Note payable to affiliate		100			—			—			—			100
Current portion of debt		42			—			253			—			295

Total current liabilities		3,990			2,423			3,139			(7,307	)		2,245
Long-term debt		3,221			—			353			—			3,574
Notes payable to affiliates		772			—			978			(973	)		777
Deferred income taxes		—			187			40			(43	)		184
Other noncurrent liabilities		152			244			716			—			1,112

Total liabilities		8,135			2,854			5,226			(8,323	)		7,892
Equity
Huntsman International LLC members' equity
Members' equity		3,133			4,444			2,320			(6,764	)		3,133
Accumulated deficit		(1,220	)		(38	)		(442	)		480			(1,220	)
Accumulated other comprehensive (loss) income		(758	)		1,362			(683	)		(679	)		(758	)

Total Huntsman International LLC members' equity		1,155			5,768			1,195			(6,963	)		1,155
Noncontrolling interests in subsidiaries		—			—			108			34			142

Total equity		1,155			5,768			1,303			(6,929	)		1,297

Total liabilities and equity	$	9,290		$	8,622		$	6,529		$	(15,252	)	$	9,189

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED)
AS OF DECEMBER 31, 2012
(Dollars in Millions)

	Parent Company			Guarantors			Nonguarantors			Eliminations			Consolidated Huntsman International LLC

ASSETS
Current assets:
Cash and cash equivalents	$	7		$	2		$	201		$	—		$	210
Restricted cash		—			—			9			—			9
Accounts and notes receivable, net		16			182			1,336			—			1,534
Accounts receivable from affiliates		1,733			3,907			101			(5,442	)		299
Inventories		111			309			1,404			(5	)		1,819
Prepaid expenses		10			7			43			(12	)		48
Deferred income taxes		7			—			57			(13	)		51
Other current assets		203			5			225			(211	)		222

Total current assets		2,087			4,412			3,376			(5,683	)		4,192
Property, plant and equipment, net		371			898			2,386			1			3,656
Investment in unconsolidated affiliates		5,413			1,360			159			(6,694	)		238
Intangible assets, net		27			2			42			(1	)		70
Goodwill		(18	)		82			53			—			117
Deferred income taxes		248			—			224			(243	)		229
Notes receivable from affiliates		21			941			2			(962	)		2
Other noncurrent assets		72			139			156			(1	)		366

Total assets	$	8,221		$	7,834		$	6,398		$	(13,583	)	$	8,870

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	87		$	280		$	734		$	—		$	1,101
Accounts payable to affiliates		2,987			1,111			1,406			(5,442	)		62
Accrued liabilities		87			342			518			(224	)		723
Deferred income taxes		—			45			9			(15	)		39
Note payable to affiliate		100			—			—			—			100
Current portion of debt		15			—			273			—			288

Total current liabilities		3,276			1,778			2,940			(5,681	)		2,313
Long-term debt		3,026			—			388			—			3,414
Notes payable to affiliates		595			—			965			(961	)		599
Deferred income taxes		14			169			49			(62	)		170
Other noncurrent liabilities		216			190			751			—			1,157

Total liabilities		7,127			2,137			5,093			(6,704	)		7,653
Equity
Huntsman International LLC members' equity
Members' equity		3,109			4,689			2,262			(6,951	)		3,109
Accumulated deficit		(1,224	)		(243	)		(354	)		597			(1,224	)
Accumulated other comprehensive (loss) income		(791	)		1,251			(692	)		(559	)		(791	)

Total Huntsman International LLC members' equity		1,094			5,697			1,216			(6,913	)		1,094
Noncontrolling interests in subsidiaries		—			—			89			34			123

Total equity		1,094			5,697			1,305			(6,879	)		1,217

Total liabilities and equity	$	8,221		$	7,834		$	6,398		$	(13,583	)	$	8,870

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(UNAUDITED)
THREE MONTHS ENDED SEPTEMBER 30, 2013
(Dollars in Millions)

	Parent Company			Guarantors			Nonguarantors			Eliminations			Consolidated Huntsman International LLC

Revenues:
Trade sales, services and fees, net	$	283		$	830		$	1,676		$	—		$	2,789
Related party sales		207			118			308			(580	)		53

Total revenues		490			948			1,984			(580	)		2,842
Cost of goods sold		415			723			1,771			(578	)		2,331

Gross profit		75			225			213			(2	)		511
Selling, general and administrative		37			38			161			—			236
Research and development		12			9			14			—			35
Other operating (income) expense		(8	)		(7	)		14			—			(1	)
Restructuring, impairment and plant closing costs		2			3			32			—			37

Operating income (loss)		32			182			(8	)		(2	)		204
Interest (expense) income, net		(45	)		11			(17	)		—			(51	)
Equity in (loss) income of investment in affiliates and subsidiaries		(3	)		(23	)		2			27			3
Other income		1			—			1			(2	)		—

(Loss) income from continuing operations before income taxes		(15	)		170			(22	)		23			156
Income tax benefit (expense)		83			(168	)		5			—			(80	)

Income (loss) from continuing operations		68			2			(17	)		23			76
Income (loss) from discontinued operations, net of tax		—			1			(3	)		—			(2	)

Net income (loss)		68			3			(20	)		23			74
Net income attributable to noncontrolling interests		—			—			(6	)		—			(6	)

Net income (loss) attributable to Huntsman International LLC	$	68		$	3		$	(26	)	$	23		$	68

Net income (loss)	$	68		$	3		$	(20	)	$	23		$	74
Other comprehensive income		72			288			52			(338	)		74
Comprehensive income attributable to noncontrolling interests		—			—			(8	)		—			(8	)

Comprehensive income attributable to Huntsman International LLC	$	140		$	291		$	24		$	(315	)	$	140

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(UNAUDITED)
THREE MONTHS ENDED SEPTEMBER 30, 2012
(Dollars in Millions)

	Parent Company			Guarantors			Nonguarantors			Eliminations			Consolidated Huntsman International LLC

Revenues:
Trade sales, services and fees, net	$	240		$	838		$	1,613		$	—		$	2,691
Related party sales		187			92			306			(535	)		50

Total revenues		427			930			1,919			(535	)		2,741
Cost of goods sold		362			689			1,706			(558	)		2,199

Gross profit		65			241			213			23			542
Selling, general and administrative		43			25			152			—			220
Research and development		10			9			16			—			35
Other operating (income) expense		(1	)		(5	)		4			2			—
Restructuring, impairment and plant closing costs (credits)		1			(1	)		47			—			47

Operating income (loss)		12			213			(6	)		21			240
Interest (expense) income, net		(52	)		10			(17	)		—			(59	)
Equity in income (loss) of investment in affiliates and subsidiaries		146			(20	)		3			(127	)		2
Loss on early extinguishment of debt		(1	)		—			—			—			(1	)
Other income		—			21			1			(21	)		1

Income (loss) from continuing operations before income taxes		105			224			(19	)		(127	)		183
Income tax benefit (expense)		11			(80	)		7			—			(62	)

Income (loss) from continuing operations		116			144			(12	)		(127	)		121
Income (loss) from discontinued operations, net of tax		1			—			(2	)		—			(1	)

Income (loss) before extraordinary gain		117			144			(14	)		(127	)		120
Extraordinary gain on the acquisition of a business, net of tax of nil		—			—			1			—			1

Net income (loss)		117			144			(13	)		(127	)		121
Net loss (income) attributable to noncontrolling interests		—			1			(6	)		1			(4	)

Net income (loss) attributable to Huntsman International LLC	$	117		$	145		$	(19	)	$	(126	)	$	117

Net income (loss)	$	117		$	144		$	(13	)	$	(127	)	$	121
Other comprehensive income		107			61			87			(146	)		109
Comprehensive (loss) income attributable to noncontrolling interests		—			1			(8	)		1			(6	)

Comprehensive income attributable to Huntsman International LLC	$	224		$	206		$	66		$	(272	)	$	224

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (UNAUDITED)
NINE MONTHS ENDED SEPTEMBER 30, 2013
(Dollars in Millions)

	Parent Company			Guarantors			Nonguarantors			Eliminations			Consolidated Huntsman International LLC

Revenues:
Trade sales, services and fees, net	$	798		$	2,434		$	4,966		$	—		$	8,198
Related party sales		592			357			943			(1,716	)		176

Total revenues		1,390			2,791			5,909			(1,716	)		8,374
Cost of goods sold		1,208			2,206			5,353			(1,713	)		7,054

Gross profit		182			585			556			(3	)		1,320
Selling, general and administrative		112			111			469			—			692
Research and development		38			28			39			—			105
Other operating (income) expense		—			(3	)		9			—			6
Restructuring, impairment and plant closing costs		9			14			87			—			110

Operating income (loss)		23			435			(48	)		(3	)		407
Interest (expense) income, net		(139	)		32			(49	)		—			(156	)
Equity in income (loss) of investment in affiliates and subsidiaries		204			(110	)		5			(93	)		6
Loss on early extinguishment of debt		(35	)		—			—			—			(35	)
Other income		2			—			2			(2	)		2

Income (loss) from continuing operations before income taxes		55			357			(90	)		(98	)		224
Income tax benefit (expense)		39			(149	)		4			—			(106	)

Income (loss) from continuing operations		94			208			(86	)		(98	)		118
Income (loss) from discontinued operations, net of tax		—			1			(5	)		—			(4	)

Net income (loss)		94			209			(91	)		(98	)		114
Net income attributable to noncontrolling interests		—			—			(20	)		—			(20	)

Net income (loss) attributable to Huntsman International LLC	$	94		$	209		$	(111	)	$	(98	)	$	94

Net income (loss)	$	94		$	209		$	(91	)	$	(98	)	$	114
Other comprehensive income		33			109			9			(119	)		32
Comprehensive income attributable to noncontrolling interests		—			—			(19	)		—			(19	)

Comprehensive income (loss) attributable to Huntsman International LLC	$	127		$	318		$	(101	)	$	(217	)	$	127

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (UNAUDITED)
NINE MONTHS ENDED SEPTEMBER 30, 2012
(Dollars in Millions)

	Parent Company			Guarantors			Nonguarantors			Eliminations			Consolidated Huntsman International LLC

Revenues:
Trade sales, services and fees, net	$	718		$	2,654		$	5,034		$	—		$	8,406
Related party sales		536			346			884			(1,604	)		162

Total revenues		1,254			3,000			5,918			(1,604	)		8,568
Cost of goods sold		1,071			2,300			5,170			(1,601	)		6,940

Gross profit		183			700			748			(3	)		1,628
Selling, general and administrative		142			76			451			—			669
Research and development		32			27			53			—			112
Other operating (income) expense		(4	)		2			7			2			7
Restructuring, impairment and plant closing costs		2			—			50			—			52

Operating income		11			595			187			(5	)		788
Interest (expense) income, net		(155	)		31			(57	)		—			(181	)
Equity in income of investment in affiliates and subsidiaries		531			102			6			(634	)		5
Loss on early extinguishment of debt		(2	)		—			—			—			(2	)
Other (expense) income		(22	)		21			2			1			2

Income from continuing operations before income taxes		363			749			138			(638	)		612
Income tax benefit (expense)		44			(214	)		(18	)		—			(188	)

Income from continuing operations		407			535			120			(638	)		424
Income (loss) from discontinued operations, net of tax		3			—			(10	)		—			(7	)

Income before extraordinary gain		410			535			110			(638	)		417
Extraordinary gain on the acquisition of a business, net of tax of nil		—			—			1			—			1

Net income		410			535			111			(638	)		418
Net income attributable to noncontrolling interests		—			—			(11	)		3			(8	)

Net income attributable to Huntsman International LLC	$	410		$	535		$	100		$	(635	)	$	410

Net income	$	410		$	535		$	111		$	(638	)	$	418
Other comprehensive income		80			80			72			(150	)		82
Comprehensive income attributable to noncontrolling interests		—			—			(10	)		—			(10	)

Comprehensive income attributable to Huntsman International LLC	$	490		$	615		$	173		$	(788	)	$	490

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED)

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED)
NINE MONTHS ENDED SEPTEMBER 30, 2013
(Dollars in Millions)

	Parent Company			Guarantors			Nonguarantors			Eliminations			Consolidated Huntsman International LLC

Net cash (used in) provided by operating activities	$	(13	)	$	108		$	288		$	(1	)	$	382

Investing activities:
Capital expenditures		(35	)		(76	)		(184	)		—			(295	)
Increase in receivable from affiliate		(16	)		—			—			—			(16	)
Investment in affiliate		(23	)		(8	)		—			31			—
Investment in unconsolidated affiliates		—			(44	)		(32	)		—			(76	)
Proceeds from sale of businesses/assets		—			(3	)		2			—			(1	)
Cash received from unconsolidated affiliates		—			48			—			—			48
Acquisition of a business		(66	)		—			—			—			(66	)
Other, net		—			—			2			—			2

Net cash used in investing activities		(140	)		(83	)		(212	)		31			(404	)

Financing activities:
Net repayments under revolving loan facilities		—			—			(3	)		—			(3	)
Net borrowings on overdraft facilities		—			—			(2	)		—			(2	)
Repayments of short-term debt		—			—			(18	)		—			(18	)
Borrowings on short-term debt		—			—			14			—			14
Repayments of long-term debt		(393	)		—			(66	)		—			(459	)
Proceeds from issuance of long-term debt		570			—			2			—			572
Proceeds from notes payable to affiliate		177			—			—			—			177
Repayments of notes payable		(24	)		—			(6	)		—			(30	)
Borrowings on notes payable		33			—			1			—			34
Debt issuance costs paid		(4	)		—			—			—			(4	)
Call premiums and other costs related to early extinguishment of debt		(4	)		—			—			—			(4	)
Contribution from parent		—			8			57			(65	)		—
Distribution to parent		—			(34	)		—			34			—
Dividends paid to parent		(90	)		(1	)		—			1			(90	)
Excess tax benefit related to stock-based compensation		4			—			—			—			4
Other, net		1			—			—			—			1

Net cash provided by (used in) financing activities		270			(27	)		(21	)		(30	)		192
Effect of exchange rate changes on cash		—			—			(2	)		—			(2	)

Increase (decrease) in cash and cash equivalents		117			(2	)		53			—			168
Cash and cash equivalents at beginning of period		7			2			201			—			210

Cash and cash equivalents at end of period	$	124		$	—		$	254		$	—		$	378

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED)
NINE MONTHS ENDED SEPTEMBER 30, 2012
(Dollars in Millions)

	Parent Company			Guarantors			Nonguarantors			Eliminations			Consolidated Huntsman International LLC

Net cash provided by operating activities	$	161		$	124		$	349		$	(1	)	$	633

Investing activities:
Capital expenditures		(14	)		(55	)		(179	)		—			(248	)
Increase in receivable from affiliate		(97	)		—			—			—			(97	)
Investment in affiliate		23			(11	)		—			(12	)		—
Investment in unconsolidated affiliate		(3	)		(81	)		—			—			(84	)
Cash received from unconsolidated affiliates		—			51			—			—			51
Acquisition of a business		—			—			(17	)		(1	)		(18	)
Increase in restricted cash		—			—			(2	)		—			(2	)
Other, net		—			—			2			—			2

Net cash used in investing activities		(91	)		(96	)		(196	)		(13	)		(396	)

Financing activities:
Net repayments under revolving loan facilities		—			—			(16	)		—			(16	)
Net borrowings on overdraft facilities		—			—			2			—			2
Repayments of short-term debt		—			—			(40	)		—			(40	)
Repayments of long-term debt		(175	)		—			(67	)		—			(242	)
Proceeds from issuance of long-term debt		—			—			3			—			3
Proceeds from notes payable to affiliate		172			—			—			—			172
Repayments of notes payable		(24	)		—			(9	)		—			(33	)
Borrowings on notes payable		33			—			1			—			34
Debt issuance costs paid		(4	)		—			—			—			(4	)
Call premiums related to early extinguishment of debt		(2	)		—			—			—			(2	)
Contribution from parent		—			11			11			(22	)		—
Distribution to parent		—			(35	)		—			35			—
Dividends paid to parent		(72	)		(1	)		(1	)		2			(72	)
Excess tax benefit related to stock-based compensation		4			—			—			—			4
Other, net		(2	)		—			(2	)		(1	)		(5	)

Net cash used in financing activities		(70	)		(25	)		(118	)		14			(199	)
Effect of exchange rate changes on cash		—			—			2			—			2

Increase in cash and cash equivalents		—			3			37			—			40
Cash and cash equivalents at beginning of period		4			—			227			—			231

Cash and cash equivalents at end of period	$	4		$	3		$	264		$	—		$	271