Registration of securities issued in business combination transactions

CONDENSED CONSOLIDATING FINANCIAL INFORMATION

v2.4.0.8
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
12 Months Ended
Dec. 31, 2013
CONDENSED CONSOLIDATING FINANCIAL INFORMATION  
CONDENSED CONSOLIDATING FINANCIAL INFORMATION

25. CONDENSED CONSOLIDATING FINANCIAL INFORMATION

        The following condensed consolidating financial statements present, in separate columns, financial information for the following: Huntsman International (on a parent only basis), with its investment in subsidiaries recorded under the equity method; the Guarantors on a combined, and where appropriate, consolidated basis; and the nonguarantors on a combined, and where appropriate, consolidated basis. Additional columns present eliminating adjustments and consolidated totals as of December 31, 2013 and 2012 and for the years ended December 31, 2013, 2012 and 2011. There are no contractual restrictions limiting transfers of cash from Guarantor subsidiaries to our Company. Each of the Guarantors is 100% owned by us and has fully and unconditionally guaranteed our outstanding notes on a joint and several basis.

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
AS OF DECEMBER 31, 2013
(In Millions)

 
  Parent
Company
  Guarantors   Nonguarantors   Eliminations   Consolidated
Huntsman
International
LLC
 

ASSETS

                               

Current assets:

                               

Cash and cash equivalents

  $ 308   $   $ 207   $   $ 515  

Restricted cash

            9         9  

Accounts and notes receivable, net

    28     130     1,384         1,542  

Accounts receivable from affiliates

    2,386     4,823     140     (7,024 )   325  

Inventories

    112     297     1,339     (7 )   1,741  

Prepaid expenses

    70     64     47     (120 )   61  

Deferred income taxes

    12         59     (18 )   53  

Other current assets

    379     4     199     (382 )   200  
                       

Total current assets

    3,295     5,318     3,384     (7,551 )   4,446  

Property, plant and equipment, net

    390     954     2,414     1     3,759  

Investment in unconsolidated affiliates

    5,393     1,178     178     (6,464 )   285  

Intangible assets, net

    48     1     39         88  

Goodwill

    (17 )   82     66         131  

Deferred income taxes

    323         239     (319 )   243  

Notes receivable from affiliates

    22     658     1     (680 )   1  

Other noncurrent assets

    67     172     220     (1 )   458  
                       

Total assets

  $ 9,521   $ 8,363   $ 6,541   $ (15,014 ) $ 9,411  
                       
                       

LIABILITIES AND EQUITY

                               

Current liabilities:

                               

Accounts payable

  $ 50   $ 267   $ 750   $   $ 1,067  

Accounts payable to affiliates

    3,655     1,476     1,946     (7,024 )   53  

Accrued liabilities

    138     517     590     (503 )   742  

Deferred income taxes

        57     8     (21 )   44  

Note payable to affiliate

    100                 100  

Current portion of debt

    28         249         277  
                       

Total current liabilities

    3,971     2,317     3,543     (7,548 )   2,283  

Long-term debt

    3,290         343         3,633  

Notes payable to affiliates

    772         687     (680 )   779  

Deferred income taxes

    25     200     39     39     303  

Other noncurrent liabilities

    137     140     661         938  
                       

Total liabilities

    8,195     2,657     5,273     (8,189 )   7,936  

Equity

                               

Huntsman International LLC members' equity

                               

Members' equity

    3,138     4,354     2,215     (6,569 )   3,138  

Accumulated deficit

    (1,194 )   66     (450 )   384     (1,194 )

Accumulated other comprehensive (loss) income

    (618 )   1,286     (645 )   (641 )   (618 )
                       

Total Huntsman International LLC members' equity

    1,326     5,706     1,120     (6,826 )   1,326  

Noncontrolling interests in subsidiaries

            148     1     149  
                       

Total equity

    1,326     5,706     1,268     (6,825 )   1,475  
                       

Total liabilities and equity

  $ 9,521   $ 8,363   $ 6,541   $ (15,014 ) $ 9,411  
                       
                       

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
AS OF DECEMBER 31, 2012
(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  
                       
                       

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 2013
(In Millions)

 
  Parent
Company
  Guarantors   Nonguarantors   Eliminations   Consolidated
Huntsman
International
LLC
 

Revenues:

                               

Trade sales, services and fees, net

  $ 1,039   $ 3,193   $ 6,615   $   $ 10,847  

Related party sales

    315     470     1,277     (1,830 )   232  
                       

Total revenues

    1,354     3,663     7,892     (1,830 )   11,079  

Cost of goods sold

    1,097     2,904     7,137     (1,829 )   9,309  
                       

Gross profit

    257     759     755     (1 )   1,770  

Selling, general and administrative

    168     131     637         936  

Research and development

    51     38     51         140  

Other operating (income) expense

    (6 )   (10 )   26         10  

Restructuring, impairment and plant closing costs

    13     15     123         151  
                       

Operating income (loss)

    31     585     (82 )   (1 )   533  

Interest (expense) income, net

    (185 )   43     (61 )       (203 )

Equity in income (loss) of investment in affiliates and subsidiaries

    118     (134 )   8     16     8  

Loss on early extinguishment of debt

    (51 )               (51 )

Other income

    2         2     (2 )   2  
                       

Loss (income) from continuing operations before income taxes

    (85 )   494     (133 )   13     289  

Income tax benefit (expense)

    210     (200 )   26     (173 )   (137 )
                       

Income (loss) from continuing operations

    125     294     (107 )   (160 )   152  

Income (loss) from discontinued operations, net of tax

    1     (1 )   (5 )       (5 )
                       

Net income (loss)

    126     293     (112 )   (160 )   147  

Net income attributable to noncontrolling interests

            (22 )   1     (21 )
                       

Net income (loss) attributable to Huntsman International LLC

  $ 126   $ 293   $ (134 ) $ (159 ) $ 126  
                       
                       

Net income (loss)

  $ 126   $ 293   $ (112 ) $ (160 ) $ 147  

Other comprehensive income

    173     34     48     (77 )   178  

Comprehensive income attributable to noncontrolling interests

            (23 )   (3 )   (26 )
                       

Comprehensive income (loss) attributable to Huntsman International LLC

  $ 299   $ 327   $ (87 ) $ (240 ) $ 299  
                       
                       

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 2012
(In Millions)

 
  Parent
Company
  Guarantors   Nonguarantors   Eliminations   Consolidated
Huntsman
International
LLC
 

Revenues:

                               

Trade sales, services and fees, net

  $ 932   $ 3,443   $ 6,589   $   $ 10,964  

Related party sales

    745     447     1,161     (2,130 )   223  
                       

Total revenues

    1,677     3,890     7,750     (2,130 )   11,187  

Cost of goods sold

    1,424     3,003     6,849     (2,130 )   9,146  
                       

Gross profit

    253     887     901         2,041  

Selling, general and administrative

    191     120     623         934  

Research and development

    47     36     69         152  

Other operating (income) expense

    (5 )   2     (3 )       (6 )

Restructuring, impairment and plant closing costs

    4     7     81         92  
                       

Operating income

    16     722     131         869  

Interest (expense) income, net

    (207 )   42     (73 )       (238 )

Equity in income of investment in affiliates and subsidiaries

    503     40     9     (545 )   7  

Loss on early extinguishment of debt

    (80 )               (80 )

Other (expense) income

    (12 )   14     (1 )       1  
                       

Income from continuing operations before income taxes

    220     818     66     (545 )   559  

Income tax benefit (expense)

    141     (243 )   1     (78 )   (179 )
                       

Income from continuing operations

    361     575     67     (623 )   380  

Income (loss) from discontinued operations, net of tax

    4     1     (12 )       (7 )
                       

Income before extraordinary gain

    365     576     55     (623 )   373  

Extraordinary gain on the acquisition of a business, net of tax of nil

            2         2  
                       

Net income

    365     576     57     (623 )   375  

Net income attributable to noncontrolling interests

            (16 )   6     (10 )
                       

Net income attributable to Huntsman International LLC

  $ 365   $ 576   $ 41   $ (617 ) $ 365  
                       
                       

Net income

  $ 365   $ 576   $ 57   $ (623 ) $ 375  

Other comprehensive loss

    (180 )   (250 )   (148 )   397     (181 )

Comprehensive income attributable to noncontrolling interests

            (16 )   7     (9 )
                       

Comprehensive income (loss) attributable to Huntsman International LLC

  $ 185   $ 326   $ (107 ) $ (219 ) $ 185  
                       
                       

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 2011
(In Millions)

 
  Parent
Company
  Guarantors   Nonguarantors   Eliminations   Consolidated
Huntsman
International LLC
 

Revenues:

                               

Trade sales, services and fees, net

  $ 885   $ 3,349   $ 6,807   $   $ 11,041  

Related party sales

    453     493     1,098     (1,864 )   180  
                       

Total revenues

    1,338     3,842     7,905     (1,864 )   11,221  

Cost of goods sold

    1,178     3,160     6,855     (1,830 )   9,363  
                       

Gross profit

    160     682     1,050     (34 )   1,858  

Selling, general and administrative

    182     97     637         916  

Research and development

    50     34     82         166  

Other operating expense (income)

    35     (18 )   (37 )       (20 )

Restructuring, impairment and plant closing costs

    1         166         167  
                       

Operating (loss) income

    (108 )   569     202     (34 )   629  

Interest (expense) income, net

    (216 )   43     (89 )       (262 )

Equity in income of investment in affiliates and subsidiaries

    381     77     9     (459 )   8  

Loss on early extinguishment of debt

    (7 )               (7 )

Other (expense) income

    (35 )       1     36     2  
                       

Income from continuing operations before income taxes

    15     689     123     (457 )   370  

Income tax benefit (expense)

    232     (210 )   (35 )   (100 )   (113 )
                       

Income from continuing operations

    247     479     88     (557 )   257  

Income (loss) from discontinued operations, net of tax

    6     (1 )   (6 )       (1 )
                       

Income before extraordinary gain

    253     478     82     (557 )   256  

Extraordinary gain on the acquisition of a business, net of tax of nil

            4         4  
                       

Net income

    253     478     86     (557 )   260  

Net income attributable to noncontrolling interests

        (2 )   (6 )   1     (7 )
                       

Net income attributable to Huntsman International LLC

  $ 253   $ 476   $ 80   $ (556 ) $ 253  
                       
                       

Net income

  $ 253   $ 478   $ 86   $ (557 ) $ 260  

Other comprehensive loss

    (257 )   (98 )   (232 )   325     (262 )

Comprehensive income attributable to noncontrolling interests

        (3 )   (1 )   2     (2 )
                       

Comprehensive (loss) income attributable to Huntsman International LLC

  $ (4 )   377   $ (147 ) $ (230 ) $ (4 )
                       
                       

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2013
(In Millions)

 
  Parent
Company
  Guarantors   Nonguarantors   Eliminations   Consolidated
Huntsman
International LLC
 

Net cash (used in) provided by operating activities

  $ 113   $ 167   $ 456   $ (2 ) $ 734  
                       

Investing activities:

                               

Capital expenditures

    (52 )   (134 )   (285 )       (471 )

Cash received from unconsolidated affiliates

        71             71  

Investment in affiliate

    68     (11 )       (57 )    

Investment in unconsolidated affiliates

        (60 )   (44 )       (104 )

Acquisition of a business, net of cash acquired

    (66 )               (66 )

Proceeds from sale of businesses/assets

            2         2  

Increase in receivable from affiliate

    (48 )               (48 )

Other, net

    (2 )       4         2  
                       

Net cash used in investing activities

    (100 )   (134 )   (323 )   (57 )   (614 )
                       

Financing activities:

                               

Net repayments under revolving loan facilities

            (4 )       (4 )

Net borrowings on overdraft facilities

            (9 )       (9 )

Repayments of short-term debt

            (18 )       (18 )

Borrowings on short-term debt

            15         15  

Repayments of long-term debt

    (761 )       (79 )       (840 )

Proceeds from issuance of long-term debt

    978         1         979  

Proceeds from notes payable to affiliate

    177                 177  

Repayments of notes payable

    (33 )       (7 )       (40 )

Borrowings on notes payable

    33         2         35  

Debt issuance costs paid

    (11 )               (11 )

Call premiums and other costs related to early extinguishment of debt

    (4 )               (4 )

Contribution from parent

        11     (24 )   13      

Distribution to parent

        (44 )       44      

Dividends paid to parent

    (96 )   (2 )       2     (96 )

Excess tax benefit related to stock-based compensation

    1                 1  

Other, net

    4         (1 )       3  
                       

Net cash provided by (used in) financing activities

    288     (35 )   (124 )   59     188  

Effect of exchange rate changes on cash

            (3 )       (3 )
                       

Increase (decrease) in cash and cash equivalents

    301     (2 )   6         305  

Cash and cash equivalents at beginning of period

    7     2     201         210  
                       

Cash and cash equivalents at end of period

  $ 308   $   $ 207   $   $ 515  
                       
                       

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2012
(In Millions)

 
  Parent
Company
  Guarantors   Nonguarantors   Eliminations   Consolidated
Huntsman
International LLC
 

Net cash provided by operating activities

  $ 85     269   $ 508   $ (2 ) $ 860  
                       

Investing activities:

                               

Capital expenditures

    (23 )   (111 )   (278 )       (412 )

Cash received from unconsolidated affiliates

        80     2         82  

Investment in affiliate

    225     (62 )   48     (211 )    

Investment in unconsolidated affiliates

    (3 )   (100 )   (24 )       (127 )

Acquisition of businesses, net of cash acquired

            (18 )       (18 )

Proceeds from sale of businesses/assets

            6         6  

Increase in receivable from affiliate

    (108 )               (108 )

Other, net

        1     (1 )   (1 )   (1 )
                       

Net cash provided by (used in) investing activities

    91     (192 )   (265 )   (212 )   (578 )
                       

Financing activities:

                               

Net repayments under revolving loan facilities

            (15 )       (15 )

Net borrowings on overdraft facilities

            2         2  

Repayments of short-term debt

            (53 )       (53 )

Repayments of long-term debt

    (625 )       (69 )       (694 )

Proceeds from issuance of long-term debt

    400         5         405  

Repayments of notes payable to affiliate

    (139 )               (139 )

Proceeds from notes payable to affiliate

    299                 299  

Repayments of notes payable

    (33 )       (4 )       (37 )

Borrowings on notes payable

    33         1         34  

Debt issuance costs paid

    (11 )               (11 )

Call premiums related to early extinguishment of debt

    (2 )               (2 )

Contribution from parent

        14         (14 )    

Distribution to parent

        (87 )   (138 )   225      

Dividends paid to parent

    (96 )   (2 )   (1 )   3     (96 )

Excess tax benefit related to stock-based compensation

    4                 4  

Other, net

    (3 )               (3 )
                       

Net cash used in financing activities

    (173 )   (75 )   (272 )   214     (306 )

Effect of exchange rate changes on cash

            3         3  
                       

Increase (decrease) in cash and cash equivalents

    3     2     (26 )       (21 )

Cash and cash equivalents at beginning of period

    4         227         231  
                       

Cash and cash equivalents at end of period

  $ 7     2   $ 201   $   $ 210  
                       
                       

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2011
(In Millions)

 
  Parent
Company
  Guarantors   Nonguarantors   Eliminations   Consolidated
Huntsman
International LLC
 

Net cash provided by operating activities

  $ 304   $ 99   $ 34   $ (5 ) $ 432  
                       

Investing activities:

                               

Capital expenditures

    (21 )   (70 )   (239 )       (330 )

Cash received from unconsolidated affiliates

        30     2         32  

Investment in affiliates

    (56 )   (16 )       72      

Investment in unconsolidated affiliate

        (26 )           (26 )

Proceeds from settlements treated as reimbursement of capital expenditures

            3         3  

Acquisition of businesses, net of cash acquired

            (34 )       (34 )

Cash assumed in connection with the initial consolidation of a variable interest entity

            28         28  

Proceeds from sale of businesses/assets

        8     40         48  

Increase in receivable from affiliate

    (57 )               (57 )

Other, net

            (4 )   3     (1 )
                       

Net cash used in investing activities

    (134 )   (74 )   (204 )   75     (337 )
                       

Financing activities:

                               

Net repayments under revolving loan facilities

            (2 )       (2 )

Net borrowings on overdraft facilities

            9         9  

Repayments of short-term debt

            (187 )       (187 )

Borrowings on short-term debt

            162         162  

Repayments of long-term debt

    (305 )       (103 )       (408 )

Proceeds from issuance of long-term debt

            98         98  

Repayments of notes payable to affiliate

    (105 )               (105 )

Proceeds from notes payable to affiliate

    105                 105  

Repayments of notes payable

    (32 )       (2 )       (34 )

Borrowings on notes payable

    33         2         35  

Debt issuance costs paid

    (7 )               (7 )

Call premiums related to early extinguishment of debt

    (6 )               (6 )

Contribution from parent

        (32 )   104     (72 )    

Dividends paid to parent

    (79 )   (2 )       2     (79 )

Dividends paid to noncontrolling interests

            (9 )       (9 )

Excess tax benefit related to stock-based compensation

    10                 10  

Other, net

                     
                       

Net cash (used in) provided by financing activities

    (386 )   (34 )   72     (70 )   (418 )
                       

Effect of exchange rate changes on cash

            (7 )       (7 )
                       

Decrease in cash and cash equivalents

    (216 )   (9 )   (105 )       (330 )

Cash and cash equivalents at beginning of period

    220     9     332         561  
                       

Cash and cash equivalents at end of period

  $ 4   $   $ 227   $   $ 231