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

9 Months Ended

Sep. 30, 2015

Condensed consolidated financial information

CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED)

AS OF SEPTEMBER 30, 2015
(In Millions)

	Parent Company			Guarantors		Nonguarantors			Eliminations			Consolidated Huntsman International LLC
ASSETS
Current assets:
Cash and cash equivalents	$	89		$	1	$	340		$	—		$	430
Restricted cash		—			—		4			—			4
Accounts and notes receivable, net		34			134		1,421			7			1,596
Accounts receivable from affiliates		2,103			4,505		139			(6,399	)		348
Inventories		99			359		1,398			(6	)		1,850
Prepaid expenses		15			12		61			(16	)		72
Deferred income taxes		12			—		65			(18	)		59
Other current assets		737			8		196			(741	)		200

Total current assets		3,089			5,019		3,624			(7,173	)		4,559
Property, plant and equipment, net		463			1,373		2,504			1			4,341
Investment in unconsolidated affiliates		6,103			1,644		259			(7,660	)		346
Intangible assets, net		33			3		51			—			87
Goodwill		(14	)		82		49			—			117
Deferred income taxes		412			—		424			(412	)		424
Notes receivable from affiliates		24			549		—			(573	)		—
Other noncurrent assets		140			252		240			(1	)		631

Total assets	$	10,250		$	8,922	$	7,151		$	(15,818	)	$	10,505


LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	52		$	219	$	760		$	6		$	1,037
Accounts payable to affiliates		3,658			781		2,017			(6,402	)		54
Accrued liabilities		91			848		617			(757	)		799
Deferred income taxes		—			51		12			(19	)		44
Note payable to affiliate		100			—		—			—			100
Current portion of debt		98			—		60			—			158

Total current liabilities		3,999			1,899		3,466			(7,172	)		2,192
Long-term debt		4,316			—		393			—			4,709
Notes payable to affiliates		795			—		579			(572	)		802
Deferred income taxes		29			171		43			99			342
Other noncurrent liabilities		156			264		898			(1	)		1,317

Total liabilities		9,295			2,334		5,379			(7,646	)		9,362
Equity
Huntsman International LLC members' equity
Members' equity		3,187			4,508		3,428			(7,936	)		3,187
Accumulated (deficit) income		(958	)		619		(546	)		(73	)		(958	)
Accumulated other comprehensive (loss) income		(1,274	)		1,446		(1,276	)		(170	)		(1,274	)

Total Huntsman International LLC members' equity		955			6,573		1,606			(8,179	)		955
Noncontrolling interests in subsidiaries		—			15		166			7			188

Total equity		955			6,588		1,772			(8,172	)		1,143

Total liabilities and equity	$	10,250		$	8,922	$	7,151		$	(15,818	)	$	10,505

AS OF DECEMBER 31, 2014
(In Millions)

	Parent Company			Guarantors		Nonguarantors			Eliminations			Consolidated Huntsman International LLC
ASSETS
Current assets:
Cash and cash equivalents	$	353		$	6	$	351		$	—		$	710
Restricted cash		—			—		10			—			10
Accounts and notes receivable, net		57			127		1,476			5			1,665
Accounts receivable from affiliates		2,256			4,732		152			(6,794	)		346
Inventories		120			350		1,558			(3	)		2,025
Prepaid expenses		17			9		46			(11	)		61
Deferred income taxes		12			—		68			(18	)		62
Other current assets		697			7		208			(606	)		306

Total current assets		3,512			5,231		3,869			(7,427	)		5,185
Property, plant and equipment, net		431			1,251		2,692			1			4,375
Investment in unconsolidated affiliates		6,024			1,594		256			(7,524	)		350
Intangible assets, net		35			5		56			—			96
Goodwill		(15	)		82		55			—			122
Deferred income taxes		454			—		435			(454	)		435
Notes receivable from affiliates		23			592		—			(615	)		—
Other noncurrent assets		127			203		212			(4	)		538

Total assets	$	10,591		$	8,958	$	7,575		$	(16,023	)	$	11,101


LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	55		$	290	$	868		$	5		$	1,218
Accounts payable to affiliates		3,696			974		2,198			(6,794	)		74
Accrued liabilities		102			699		553			(618	)		736
Deferred income taxes		—			51		20			(19	)		52
Note payable to affiliate		100			—		—			—			100
Current portion of debt		40			—		227			—			267

Total current liabilities		3,993			2,014		3,866			(7,426	)		2,447
Long-term debt		4,629			—		304			—			4,933
Notes payable to affiliates		650			—		621			(615	)		656
Deferred income taxes		29			197		46			54			326
Other noncurrent liabilities		167			261		1,015			—			1,443

Total liabilities		9,468			2,472		5,852			(7,987	)		9,805
Equity
Huntsman International LLC members' equity
Members' equity		3,166			4,676		3,127			(7,803	)		3,166
Accumulated (deficit) income		(956	)		409		(501	)		92			(956	)
Accumulated other comprehensive (loss) income		(1,087	)		1,401		(1,076	)		(325	)		(1,087	)

Total Huntsman International LLC members' equity		1,123			6,486		1,550			(8,036	)		1,123
Noncontrolling interests in subsidiaries		—			—		173			—			173

Total equity		1,123			6,486		1,723			(8,036	)		1,296

Total liabilities and equity	$	10,591		$	8,958	$	7,575		$	(16,023	)	$	11,101

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

THREE MONTHS ENDED SEPTEMBER 30, 2015
(In Millions)

	Parent Company			Guarantors			Nonguarantors			Eliminations			Consolidated Huntsman International LLC
Revenues:
Trade sales, services and fees, net	$	270		$	674		$	1,661		$	—		$	2,605
Related party sales		62			117			261			(407	)		33

Total revenues		332			791			1,922			(407	)		2,638
Cost of goods sold		270			598			1,701			(405	)		2,164

Gross profit		62			193			221			(2	)		474
Selling, general and administrative		44			37			150			—			231
Research and development		13			11			17			—			41
Other operating expense (income)		14			(10	)		13			—			17
Restructuring, impairment and plant closing costs		3			1			10			—			14

Operating (loss) income		(12	)		154			31			(2	)		171
Interest (expense) income		(55	)		9			(5	)		—			(51	)
Equity in income (loss) of investment in affiliates and subsidiaries		101			(7	)		—			(94	)		—
Loss on early extinguishment of debt		(8	)		—			—			—			(8	)
Other income (loss)		1			(1	)		—			—			—

Income from continuing operations before income taxes		27			155			26			(96	)		112
Income tax benefit (expense)		29			(49	)		(28	)		—			(48	)

Income from continuing operations		56			106			(2	)		(96	)		64
Loss from discontinued operations, net of tax		—			—			—			—			—

Net income		56			106			(2	)		(96	)		64
Net income attributable to noncontrolling interests		—			—			(5	)		(3	)		(8	)

Net income (loss) attributable to Huntsman International LLC	$	56		$	106		$	(7	)	$	(99	)	$	56


Net income	$	56		$	106		$	(2	)	$	(96	)	$	64
Other comprehensive loss		(84	)		(137	)		(93	)		228			(86	)
Comprehensive income attributable to noncontrolling interests		—			—			(3	)		(3	)		(6	)

Comprehensive loss attributable to Huntsman International LLC	$	(28	)	$	(31	)	$	(98	)	$	129		$	(28	)

THREE MONTHS ENDED SEPTEMBER 30, 2014
(In Millions)

	Parent Company			Guarantors			Nonguarantors			Eliminations			Consolidated Huntsman International LLC
Revenues:
Trade sales, services and fees, net	$	336		$	772		$	1,711		$	—		$	2,819
Related party sales		66			123			341			(465	)		65

Total revenues		402			895			2,052			(465	)		2,884
Cost of goods sold		323			700			1,813			(468	)		2,368

Gross profit		79			195			239			3			516
Selling, general and administrative		43			32			151			—			226
Research and development		12			11			17			—			40
Other operating (income) expense		(3	)		1			9			—			7
Restructuring, impairment and plant closing costs		3			3			33			—			39

Operating income		24			148			29			3			204
Interest (expense) income		(49	)		9			(12	)		—			(52	)
Equity in income of investment in affiliates and subsidiaries		107			—			2			(107	)		2
Other income		—			—			—			(1	)		(1	)

Income from continuing operations before income taxes		82			157			19			(105	)		153
Income tax benefit (expense)		116			(54	)		(11	)		—			51

Income from continuing operations		198			103			8			(105	)		204
Loss from discontinued operations, net of tax		—			—			—			—			—

Net income		198			103			8			(105	)		204
Net income attributable to noncontrolling interests		—			—			(5	)		(1	)		(6	)

Net income attributable to Huntsman International LLC	$	198		$	103		$	3		$	(106	)	$	198


Net income	$	198		$	103		$	8		$	(105	)	$	204
Other comprehensive loss		(84	)		(91	)		(96	)		182			(89	)
Comprehensive income attributable to noncontrolling interests		—			—			(1	)		(1	)		(2	)

Comprehensive income (loss) attributable to Huntsman International LLC	$	114		$	12		$	(89	)	$	76		$	113

NINE MONTHS ENDED SEPTEMBER 30, 2015
(In Millions)

	Parent Company			Guarantors			Nonguarantors			Eliminations			Consolidated Huntsman International LLC
Revenues:
Trade sales, services and fees, net	$	795		$	1,911		$	5,156		$	—		$	7,862
Related party sales		201			376			818			(1,290	)		105

Total revenues		996			2,287			5,974			(1,290	)		7,967
Cost of goods sold		789			1,771			5,220			(1,288	)		6,492

Gross profit		207			516			754			(2	)		1,475
Selling, general and administrative		128			133			462			—			723
Research and development		35			33			56			—			124
Other operating (income) expense		(15	)		(20	)		43			—			8
Restructuring, impairment and plant closing costs		4			5			212			—			221

Operating income (loss)		55			365			(19	)		(2	)		399
Interest (expense) income		(168	)		25			(22	)		—			(165	)
Equity in income (loss) of investment in affiliates and subsidiaries		199			(46	)		5			(153	)		5
Loss on early extinguishment of debt		(31	)		—			—			—			(31	)
Other income (loss)		2			(9	)		7			(1	)		(1	)

Income (loss) from continuing operations before income taxes		57			335			(29	)		(156	)		207
Income tax benefit (expense)		35			(121	)		1			—			(85	)

Income (loss) from continuing operations		92			214			(28	)		(156	)		122
Loss from discontinued operations, net of tax		(2	)		(1	)		(1	)		—			(4	)

Net income (loss)		90			213			(29	)		(156	)		118
Net income attributable to noncontrolling interests		—			—			(18	)		(10	)		(28	)

Net income (loss) attributable to Huntsman International LLC	$	90		$	213		$	(47	)	$	(166	)	$	90


Net income (loss)	$	90		$	213		$	(29	)	$	(156	)	$	118
Other comprehensive (loss) income		(187	)		45			(208	)		156			(194	)
Comprehensive income attributable to noncontrolling interests		—			—			(10	)		(11	)		(21	)

Comprehensive (loss) income attributable to Huntsman International LLC	$	(97	)	$	258		$	(247	)	$	(11	)	$	(97	)

NINE MONTHS ENDED SEPTEMBER 30, 2014
(In Millions)

	Parent Company			Guarantors			Nonguarantors			Eliminations			Consolidated Huntsman International LLC
Revenues:
Trade sales, services and fees, net	$	907		$	2,388		$	5,138		$	—		$	8,433
Related party sales		242			380			1,053			(1,481	)		194

Total revenues		1,149			2,768			6,191			(1,481	)		8,627
Cost of goods sold		944			2,174			5,517			(1,485	)		7,150

Gross profit		205			594			674			4			1,477
Selling, general and administrative		126			110			460			—			696
Research and development		36			30			47			—			113
Other operating (income) expense		(13	)		(6	)		17			—			(2	)
Restructuring, impairment and plant closing costs		5			5			81			—			91

Operating income		51			455			69			4			579
Interest (expense) income		(142	)		27			(40	)		—			(155	)
Equity in income of investment in affiliates and subsidiaries		323			2			6			(325	)		6
Other income		2			—			—			(2	)		—

Income from continuing operations before income taxes		234			484			35			(323	)		430
Income tax benefit (expense)		139			(160	)		(8	)		—			(29	)

Income from continuing operations		373			324			27			(323	)		401
Income (loss) from discontinued operations, net of tax		2			—			(9	)		—			(7	)

Net income		375			324			18			(323	)		394
Net income attributable to noncontrolling interests		—			—			(15	)		(4	)		(19	)

Net income attributable to Huntsman International LLC	$	375		$	324		$	3		$	(327	)	$	375


Net income	$	375		$	324		$	18		$	(323	)	$	394
Other comprehensive (loss) income		(61	)		62			(77	)		8			(68	)
Comprehensive income attributable to noncontrolling interests		—			—			(8	)		(4	)		(12	)

Comprehensive income (loss) attributable to Huntsman International LLC	$	314		$	386		$	(67	)	$	(319	)	$	314

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED)

NINE MONTHS ENDED SEPTEMBER 30, 2015
(In Millions)

	Parent Company			Guarantors			Nonguarantors			Eliminations			Consolidated Huntsman International LLC
Net cash (used in) provided by operating activities	$	(104	)	$	190		$	299		$	(2	)	$	383

Investing activities:
Capital expenditures		(51	)		(185	)		(218	)		—			(454	)
Cash received from unconsolidated affiliates		—			33			—			—			33
Investment in affiliate		9			1			—			(10	)		—
Investment in unconsolidated affiliates		—			(26	)		(12	)		—			(38	)
Acquisition of businesses, net of cash acquired		—			—			(14	)		—			(14	)
Cash received from purchase price adjustment for business acquired		18			—			—			—			18
Proceeds from sale of businesses/assets		—			—			1			—			1
Increase in receivable from affiliate		(1	)		—			—			—			(1	)
Cash received from termination of cross-currency interest rate contracts		66			—			—			—			66
Change in restricted cash		—			—			5			—			5

Net cash provided by (used in) investing activities		41			(177	)		(238	)		(10	)		(384	)

Financing activities:
Net repayments on overdraft facilities		—			—			(3	)		—			(3	)
Repayments of short-term debt		—			—			(17	)		—			(17	)
Borrowings on short-term debt		—			—			11			—			11
Repayments of long-term debt		(544	)		—			(50	)		—			(594	)
Proceeds from issuance of long-term debt		326			—			—			—			326
Repayments of notes payable to affiliate		(50	)		—			—			—			(50	)
Proceeds from issuance of notes payable from affiliate		195			—			—			—			195
Repayments of notes payable		(23	)		—			(1	)		—			(24	)
Borrowings on notes payable		32			—			1			—			33
Debt issuance costs paid		(8	)		—			—			—			(8	)
Call premiums related to early extinguishment of debt		(34	)		—			—			—			(34	)
Contingent consideration paid for business acquired		(4	)		—			—			—			(4	)
Contribution from parent		—			4			12			(16	)		—
Distribution to parent		—			(21	)		(11	)		32			—
Dividends paid to noncontrolling interests		—			—			—			(6	)		(6	)
Dividends paid to parent		(92	)		(1	)		—			1			(92	)
Excess tax benefit related to stock-based compensation		1			—			—			—			1
Other, net		—			—			(1	)		1			—

Net cash used in financing activities		(201	)		(18	)		(59	)		12			(266	)
Effect of exchange rate changes on cash		—			—			(13	)		—			(13	)

Decrease in cash and cash equivalents		(264	)		(5	)		(11	)		—			(280	)
Cash and cash equivalents at beginning of period		353			6			351			—			710

Cash and cash equivalents at end of period	$	89		$	1		$	340		$	—		$	430

NINE MONTHS ENDED SEPTEMBER 30, 2014
(In Millions)

	Parent Company			Guarantors			Nonguarantors			Eliminations			Consolidated Huntsman International LLC
Net cash (used in) provided by operating activities	$	(50	)	$	135		$	254		$	(1	)	$	338

Investing activities:
Capital expenditures		(50	)		(122	)		(179	)		—			(351	)
Cash received from unconsolidated affiliates		—			38			—			—			38
Investment in affiliate		(45	)		(10	)		—			55			—
Investment in unconsolidated affiliates		—			(25	)		(12	)		—			(37	)
Proceeds from sale of businesses/assets		3			—			12			—			15
Increase in receivable from affiliate		(4	)		—			—			—			(4	)
Other, net		—			—			(2	)		—			(2	)

Net cash used in investing activities		(96	)		(119	)		(181	)		55			(341	)

Financing activities:
Net repayments under revolving loan facilities		—			—			(1	)		—			(1	)
Net borrowings on overdraft facilities		—			—			2			—			2
Repayments of short-term debt		—			—			(8	)		—			(8	)
Borrowings on short-term debt		—			—			10			—			10
Repayments of long-term debt		(13	)		—			(29	)		—			(42	)
Proceeds from issuance of long-term debt		204			—			—			—			204
Repayments of notes payable to affiliate		(65	)		—			—			—			(65	)
Repayments of notes payable		(24	)		—			(1	)		—			(25	)
Borrowings on notes payable		31			—			1			—			32
Debt issuance costs paid		(39	)		—			—			—			(39	)
Contingent consideration paid for acquisition		(6	)		—			—			—			(6	)
Dividend paid to noncontrolling interests		—			—			(4	)		—			(4	)
Contribution from parent		—			10			70			(80	)		—
Distribution to parent		—			(25	)		—			25			—
Dividends paid to parent		(91	)		(1	)		—			1			(91	)
Cash received for a noncontrolling interest of a subsidiary		—			—			5			—			5
Other, net		—			—			2			—			2

Net cash (used in) provided by financing activities		(3	)		(16	)		47			(54	)		(26	)
Effect of exchange rate changes on cash		—			—			(6	)		—			(6	)

(Decrease) increase in cash and cash equivalents		(149	)		—			114			—			(35	)
Cash and cash equivalents at beginning of period		308			—			207			—			515

Cash and cash equivalents at end of period	$	159		$	—		$	321		$	—		$	480