Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENT INFORMATION

v2.4.0.8
OPERATING SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2014
OPERATING SEGMENT INFORMATION  
OPERATING SEGMENT INFORMATION

18. OPERATING SEGMENT INFORMATION

        We derive our revenues, earnings and cash flows from the manufacture and sale of a wide variety of differentiated chemical products. We have reported our operations through five segments: Polyurethanes, Performance Products, Advanced Materials, Textile Effects and Pigments. We have organized our business and derived our operating segments around differences in product lines.

        The major products of each reportable operating segment are as follows:

Segment
  Products

Polyurethanes

   MDI, PO, polyols, PG, TPU, aniline and MTBE

Performance Products

  

amines, surfactants, LAB, maleic anhydride, other performance chemicals, EG, olefins and technology licenses

Advanced Materials

  

epoxy resin compounds and formulations; cross-linking, matting and curing agents; epoxy, acrylic and polyurethane- based adhesives and tooling resin formulations

Textile Effects

  

textile chemicals and dyes

Pigments

  

titanium dioxide

        Sales between segments are generally recognized at external market prices and are eliminated in consolidation. We use EBITDA to measure the financial performance of our global business units and for reporting the results of our operating segments. This measure includes all operating items relating to the businesses. The EBITDA of operating segments excludes items that principally apply to our Company as a whole. The revenues and EBITDA for each of our reportable operating segments are as follows (dollars in millions):

 
   Three months
ended
June 30,		   Six months
ended
June 30,		  
 
   2014   2013   2014   2013  

Revenues:

                          

Polyurethanes

   $ 1,310   $ 1,246   $ 2,510   $ 2,428  

Performance Products

     833     777     1,598     1,499  

Advanced Materials

     324     321     643     657  

Textile Effects

     248     216     472     404  

Pigments

     340     334     658     664  

Eliminations

     (67 )   (64 )   (138 )   (120 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 2,988   $ 2,830   $ 5,743   $ 5,532  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Huntsman Corporation:

                          

Segment EBITDA(1):

                          

Polyurethanes

   $ 186   $ 163   $ 344   $ 330  

Performance Products

     117     105     209     154  

Advanced Materials

     50     24     91     27  

Textile Effects

     14     (9 )   22     (36 )

Pigments

     12     25     25     28  

Corporate and other(2)

     (50 )   (61 )   (94 )   (141 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Subtotal

     329     247     597     362  

Discontinued Operations(3)

     (2 )   2     (9 )   (1 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

     327     249     588     361  

Interest expense

     (51 )   (47 )   (99 )   (98 )

Income tax expense—continuing operations

     (43 )   (44 )   (79 )   (24 )

Income tax benefit (expense)—discontinued operations

     2     (2 )   2     —  

Depreciation and amortization

     (116 )   (109 )   (239 )   (216 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net income attributable to Huntsman Corporation

   $ 119   $ 47   $ 173   $ 23  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Huntsman International:

                          

Segment EBITDA(1):

                          

Polyurethanes

   $ 186   $ 163   $ 344   $ 330  

Performance Products

     117     105     209     154  

Advanced Materials

     50     24     91     27  

Textile Effects

     14     (9 )   22     (36 )

Pigments

     12     25     25     28  

Corporate and other(2)

     (51 )   (62 )   (95 )   (141 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Subtotal

     328     246     596     362  

Discontinued Operations(3)

     (2 )   2     (9 )   (1 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

     326     248     587     361  

Interest expense

     (52 )   (51 )   (103 )   (105 )

Income tax expense—continuing operations

     (43 )   (44 )   (80 )   (26 )

Income tax benefit (expense)—discontinued operations

     2     (2 )   2     —  

Depreciation and amortization

     (113 )   (102 )   (229 )   (204 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net income attributable to Huntsman International LLC

   $ 120   $ 49   $ 177   $ 26  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   
(1)
Segment EBITDA is defined as net income attributable to Huntsman Corporation or Huntsman International, as appropriate, before interest, income tax, depreciation and amortization, and certain Corporate and other items.

(2)
Corporate and other includes unallocated corporate overhead, unallocated foreign exchange gains and losses, LIFO inventory valuation reserve adjustments, loss on early extinguishment of debt, unallocated restructuring, impairment and plant closing costs, nonoperating income and expense, benzene sales and gains and losses on the disposition of corporate assets.

(3)
The operating results of our former polymers, base chemicals and Australian styrenics businesses are classified as discontinued operations, and, accordingly, the revenues of these businesses are excluded for all periods presented. The EBITDA of our former polymers, base chemicals and Australian styrenics businesses are included in discontinued operations for all periods presented.