Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENT INFORMATION

v2.4.0.8
OPERATING SEGMENT INFORMATION
 9 Months Ended
Sep. 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 tooling materials; cross-linking, matting and curing agents; epoxy, acrylic and polyurethane-based adhesives and tooling resin materials
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
September 30,		   Nine months
ended
September 30,		  
 
   2014   2013   2014   2013  

Revenues:

                          

Polyurethanes

   $ 1,321   $ 1,306   $ 3,831   $ 3,734  

Performance Products

     762     779     2,360     2,278  

Advanced Materials

     310     309     953     966  

Textile Effects

     221     198     693     602  

Pigments

     318     310     976     974  

Eliminations

     (48 )   (60 )   (186 )   (180 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 2,884   $ 2,842   $ 8,627   $ 8,374  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Huntsman Corporation:

                          

Segment EBITDA(1):

                          

Polyurethanes

   $ 162   $ 203   $ 506   $ 533  

Performance Products

     123     106     332     260  

Advanced Materials

     51     33     142     60  

Textile Effects

     3     (18 )   25     (54 )

Pigments

     6     27     31     55  

Corporate and other(2)

     (52 )   (46 )   (146 )   (187 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Subtotal

     293     305     890     667  

Discontinued Operations(3)

     —     (2 )   (9 )   (3 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

     293     303     881     664  

Interest expense

     (49 )   (48 )   (148 )   (146 )

Income tax benefit (expense)—continuing operations

     40     (81 )   (39 )   (105 )

Income tax benefit—discontinued operations

     —     —     2     —  

Depreciation and amortization

     (96 )   (110 )   (335 )   (326 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net income attributable to Huntsman Corporation

   $ 188   $ 64   $ 361   $ 87  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Huntsman International:

                          

Segment EBITDA(1):

                          

Polyurethanes

   $ 162   $ 203   $ 506   $ 533  

Performance Products

     123     106     332     260  

Advanced Materials

     51     33     142     60  

Textile Effects

     3     (18 )   25     (54 )

Pigments

     6     27     31     55  

Corporate and other(2)

     (53 )   (46 )   (148 )   (187 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Subtotal

     292     305     888     667  

Discontinued Operations(3)

     —     (2 )   (9 )   (3 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

     292     303     879     664  

Interest expense

     (52 )   (51 )   (155 )   (156 )

Income tax benefit (expense)—continuing operations

     51     (80 )   (29 )   (106 )

Income tax benefit—discontinued operations

     —     —     2     —  

Depreciation and amortization

     (93 )   (104 )   (322 )   (308 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net income attributable to Huntsman International

   $ 198   $ 68   $ 375   $ 94  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   
(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.