OPERATING SEGMENT INFORMATION (Tables)
|
9 Months Ended |
Sep. 30, 2016 |
|---|
| OPERATING SEGMENT INFORMATION |
|
| Schedule of major products by reportable operating segment |
|
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
|
|
basic liquid and solid epoxy resins; specialty resin compounds; cross-linking, matting and curing agents; epoxy, acrylic and polyurethane-based formulations
|
|
Textile Effects
|
|
textile chemicals, dyes and digital inks
|
|
Pigments and Additives
|
|
titanium dioxide, functional additives, color pigments, timber treatment and water treatment chemicals
|
|
| Schedule of revenues and EBITDA for each of the entity's reportable operating segments and reconciliation of adjusted EBITDA to net income |
The revenues and adjusted EBITDA for each of our reportable operating segments are as follows (dollars in millions):
|
|
|
Three months
ended
September 30,
|
|
Nine months
ended
September 30,
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$
|
891
|
|
$
|
1,017
|
|
$
|
2,703
|
|
$
|
2,902
|
|
|
Performance Products
|
|
|
509
|
|
|
618
|
|
|
1,611
|
|
|
1,949
|
|
|
Advanced Materials
|
|
|
247
|
|
|
275
|
|
|
774
|
|
|
847
|
|
|
Textile Effects
|
|
|
184
|
|
|
196
|
|
|
567
|
|
|
618
|
|
|
Pigments and Additives
|
|
|
532
|
|
|
543
|
|
|
1,648
|
|
|
1,707
|
|
|
Corporate and eliminations
|
|
|
—
|
|
|
(11
|
)
|
|
(41
|
)
|
|
(56
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
2,363
|
|
$
|
2,638
|
|
$
|
7,262
|
|
$
|
7,967
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Huntsman Corporation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment adjusted EBITDA(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$
|
137
|
|
$
|
168
|
|
$
|
439
|
|
$
|
432
|
|
|
Performance Products
|
|
|
70
|
|
|
122
|
|
|
248
|
|
|
384
|
|
|
Advanced Materials
|
|
|
55
|
|
|
56
|
|
|
173
|
|
|
172
|
|
|
Textile Effects
|
|
|
17
|
|
|
10
|
|
|
59
|
|
|
50
|
|
|
Pigments and Additives
|
|
|
38
|
|
|
5
|
|
|
84
|
|
|
61
|
|
|
Corporate and other(2)
|
|
|
(45
|
)
|
|
(50
|
)
|
|
(132
|
)
|
|
(118
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
272
|
|
|
311
|
|
|
871
|
|
|
981
|
|
|
Reconciliation of adjusted EBITDA to net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
(52
|
)
|
|
(49
|
)
|
|
(152
|
)
|
|
(158
|
)
|
|
Income tax benefit (expense)—continuing operations
|
|
|
1
|
|
|
(49
|
)
|
|
(58
|
)
|
|
(85
|
)
|
|
Income tax benefit (expense)—discontinued operations
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
(1
|
)
|
|
Depreciation and amortization
|
|
|
(113
|
)
|
|
(103
|
)
|
|
(322
|
)
|
|
(297
|
)
|
|
Net income attributable to noncontrolling interests
|
|
|
9
|
|
|
8
|
|
|
22
|
|
|
28
|
|
|
Other adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business acquisition, integration and separation expenses
|
|
|
(8
|
)
|
|
(10
|
)
|
|
(21
|
)
|
|
(31
|
)
|
|
EBITDA of discontinued operations
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(4
|
)
|
|
(3
|
)
|
|
Gain (loss) on disposition of business/assets
|
|
|
22
|
|
|
—
|
|
|
22
|
|
|
(1
|
)
|
|
Loss on early extinguishment of debt
|
|
|
(1
|
)
|
|
(8
|
)
|
|
(3
|
)
|
|
(31
|
)
|
|
Certain legal settlements and related expenses
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
Amortization of pension and postretirement actuarial losses
|
|
|
(16
|
)
|
|
(19
|
)
|
|
(49
|
)
|
|
(56
|
)
|
|
Net plant incident remediation (costs) credits
|
|
|
(4
|
)
|
|
(3
|
)
|
|
2
|
|
|
(3
|
)
|
|
Restructuring, impairment and plant closing and transition costs
|
|
|
(45
|
)
|
|
(14
|
)
|
|
(88
|
)
|
|
(223
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
64
|
|
$
|
63
|
|
$
|
220
|
|
$
|
117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Beginning in the second quarter of 2016, we use segment adjusted EBITDA as the measure of each segment's profit or loss. We believe that segment adjusted EBITDA more accurately reflects what management uses to make decisions about resources to be allocated to the segments and assess their financial performance. We have recasted the measure of each segment's profit or loss in the prior periods disclosed to reflect segment adjusted EBITDA.
|
Segment adjusted EBITDA is defined as net income of Huntsman Corporation or Huntsman International, as appropriate, before interest, income tax, depreciation and amortization, net income attributable to noncontrolling interests and certain Corporate and other items, as well as eliminating the following adjustments: (a) business acquisition, integration and separation expenses; (b) EBITDA from discontinued operations; (c) gain (loss) on disposition of businesses/assets; (d) loss on early extinguishment of debt; (e) certain legal settlements and related expenses; (f) amortization of pension and postretirement actuarial losses; (g) net plant incident remediation (costs) credits; and (h) restructuring, impairment, plant closing and transition costs.
|
|
|
|
|
(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.
|
|
| Huntsman International |
|
| OPERATING SEGMENT INFORMATION |
|
| Schedule of revenues and EBITDA for each of the entity's reportable operating segments and reconciliation of adjusted EBITDA to net income |
The revenues and adjusted EBITDA for each of our reportable operating segments are as follows (dollars in millions):
|
|
|
Three months
ended
September 30,
|
|
Nine months
ended
September 30,
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
Huntsman International:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment adjusted EBITDA(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$
|
137
|
|
$
|
168
|
|
$
|
439
|
|
$
|
432
|
|
|
Performance Products
|
|
|
70
|
|
|
122
|
|
|
248
|
|
|
384
|
|
|
Advanced Materials
|
|
|
55
|
|
|
56
|
|
|
173
|
|
|
172
|
|
|
Textile Effects
|
|
|
17
|
|
|
10
|
|
|
59
|
|
|
50
|
|
|
Pigments and Additives
|
|
|
38
|
|
|
5
|
|
|
84
|
|
|
61
|
|
|
Corporate and other(2)
|
|
|
(44
|
)
|
|
(49
|
)
|
|
(129
|
)
|
|
(114
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
273
|
|
|
312
|
|
|
874
|
|
|
985
|
|
|
Reconciliation of adjusted EBITDA to net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
(55
|
)
|
|
(51
|
)
|
|
(161
|
)
|
|
(165
|
)
|
|
Income tax expense—continuing operations
|
|
|
—
|
|
|
(48
|
)
|
|
(58
|
)
|
|
(85
|
)
|
|
Income tax benefit (expense)—discontinued operations
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
(1
|
)
|
|
Depreciation and amortization
|
|
|
(109
|
)
|
|
(100
|
)
|
|
(312
|
)
|
|
(287
|
)
|
|
Net income attributable to noncontrolling interests
|
|
|
9
|
|
|
8
|
|
|
22
|
|
|
28
|
|
|
Other adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business acquisition, integration and separation expenses
|
|
|
(8
|
)
|
|
(10
|
)
|
|
(21
|
)
|
|
(31
|
)
|
|
EBITDA of discontinued operations
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(4
|
)
|
|
(3
|
)
|
|
Gain (loss) on disposition of business/assets
|
|
|
22
|
|
|
—
|
|
|
22
|
|
|
(1
|
)
|
|
Loss on early extinguishment of debt
|
|
|
(1
|
)
|
|
(8
|
)
|
|
(3
|
)
|
|
(31
|
)
|
|
Certain legal settlements and related expenses
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
Amortization of pension and postretirement actuarial losses
|
|
|
(18
|
)
|
|
(21
|
)
|
|
(55
|
)
|
|
(62
|
)
|
|
Net plant incident remediation (costs) credits
|
|
|
(4
|
)
|
|
(3
|
)
|
|
2
|
|
|
(3
|
)
|
|
Restructuring, impairment and plant closing and transition costs
|
|
|
(45
|
)
|
|
(14
|
)
|
|
(88
|
)
|
|
(223
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
63
|
|
$
|
64
|
|
$
|
218
|
|
$
|
118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Beginning in the second quarter of 2016, we use segment adjusted EBITDA as the measure of each segment's profit or loss. We believe that segment adjusted EBITDA more accurately reflects what management uses to make decisions about resources to be allocated to the segments and assess their financial performance. We have recasted the measure of each segment's profit or loss in the prior periods disclosed to reflect segment adjusted EBITDA.
|
Segment adjusted EBITDA is defined as net income of Huntsman Corporation or Huntsman International, as appropriate, before interest, income tax, depreciation and amortization, net income attributable to noncontrolling interests and certain Corporate and other items, as well as eliminating the following adjustments: (a) business acquisition, integration and separation expenses; (b) EBITDA from discontinued operations; (c) gain (loss) on disposition of businesses/assets; (d) loss on early extinguishment of debt; (e) certain legal settlements and related expenses; (f) amortization of pension and postretirement actuarial losses; (g) net plant incident remediation (costs) credits; and (h) restructuring, impairment, plant closing and transition costs.
|
|
|
|
|
(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.
|
|