| OPERATING SEGMENT INFORMATION |
26. OPERATING SEGMENT INFORMATION
We derive our revenues, earnings and cash flows from the manufacture and sale of a wide variety of differentiated and commodity chemical products. We have reported our operations through five segments: Polyurethanes, Performance Products, Advanced Materials, Textile Effects and Pigments and Additives. 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
|
|
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
|
Sales between segments are generally recognized at external market prices and are eliminated in consolidation. We use adjusted 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 adjusted EBITDA of operating segments excludes items that principally apply to our Company as a whole. The revenues and adjusted EBITDA for each of our reportable operating segments are as follows (dollars in millions):
|
|
|
Year ended December 31,
|
|
|
|
|
2016
|
|
2015
|
|
2014
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$
|
3,667
|
|
$
|
3,811
|
|
$
|
5,032
|
|
|
Performance Products
|
|
|
2,126
|
|
|
2,501
|
|
|
3,072
|
|
|
Advanced Materials
|
|
|
1,020
|
|
|
1,103
|
|
|
1,248
|
|
|
Textile Effects
|
|
|
751
|
|
|
804
|
|
|
896
|
|
|
Pigments and Additives
|
|
|
2,139
|
|
|
2,160
|
|
|
1,549
|
|
|
Eliminations
|
|
|
(46
|
)
|
|
(80
|
)
|
|
(219
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
9,657
|
|
$
|
10,299
|
|
$
|
11,578
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment adjusted EBITDA(1):
|
|
|
|
|
|
|
|
|
|
|
|
Huntsman Corporation:
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$
|
569
|
|
$
|
573
|
|
$
|
722
|
|
|
Performance Products
|
|
|
316
|
|
|
460
|
|
|
473
|
|
|
Advanced Materials
|
|
|
223
|
|
|
220
|
|
|
199
|
|
|
Textile Effects
|
|
|
73
|
|
|
63
|
|
|
58
|
|
|
Pigments and Additives
|
|
|
130
|
|
|
61
|
|
|
76
|
|
|
Corporate and other(2)
|
|
|
(184
|
)
|
|
(156
|
)
|
|
(188
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
1,127
|
|
|
1,221
|
|
|
1,340
|
|
|
Reconciliation of adjusted EBITDA to net income:
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(202
|
)
|
|
(205
|
)
|
|
(205
|
)
|
|
Income tax expense—continuing operations
|
|
|
(87
|
)
|
|
(46
|
)
|
|
(51
|
)
|
|
Income tax benefit—discontinued operations
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
Depreciation and amortization
|
|
|
(432
|
)
|
|
(399
|
)
|
|
(445
|
)
|
|
Net income attributable to noncontrolling interests
|
|
|
31
|
|
|
33
|
|
|
22
|
|
|
Other adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Business acquisition and integration expenses and purchase accounting adjustments
|
|
|
(23
|
)
|
|
(53
|
)
|
|
(67
|
)
|
|
EBITDA from discontinued operations
|
|
|
(6
|
)
|
|
(6
|
)
|
|
(10
|
)
|
|
Gain (loss) on disposition of business/assets
|
|
|
119
|
|
|
(2
|
)
|
|
3
|
|
|
Loss on early extinguishment of debt
|
|
|
(3
|
)
|
|
(31
|
)
|
|
(28
|
)
|
|
Certain legal settlements and related expenses
|
|
|
(3
|
)
|
|
(4
|
)
|
|
(3
|
)
|
|
Amortization of pension and postretirement actuarial losses
|
|
|
(65
|
)
|
|
(74
|
)
|
|
(51
|
)
|
|
Net plant incident remediation costs
|
|
|
(1
|
)
|
|
(4
|
)
|
|
—
|
|
|
Restructuring, impairment and plant closing and transition costs
|
|
|
(82
|
)
|
|
(306
|
)
|
|
(162
|
)
|
|
Spin-off separation expenses
|
|
|
(18
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
357
|
|
$
|
126
|
|
$
|
345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
December 31,
|
|
|
|
|
2016
|
|
2015
|
|
2014
|
|
|
Depreciation and Amortization:
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$
|
114
|
|
$
|
100
|
|
$
|
131
|
|
|
Performance Products
|
|
|
132
|
|
|
119
|
|
|
138
|
|
|
Advanced Materials
|
|
|
35
|
|
|
38
|
|
|
42
|
|
|
Textile Effects
|
|
|
15
|
|
|
17
|
|
|
16
|
|
|
Pigments and Additives
|
|
|
106
|
|
|
93
|
|
|
78
|
|
|
Corporate and other
|
|
|
30
|
|
|
32
|
|
|
40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
432
|
|
$
|
399
|
|
$
|
445
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
December 31,
|
|
|
|
|
2016
|
|
2015
|
|
2014
|
|
|
Capital Expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$
|
143
|
|
$
|
181
|
|
$
|
174
|
|
|
Performance Products
|
|
|
131
|
|
|
205
|
|
|
181
|
|
|
Advanced Materials
|
|
|
16
|
|
|
25
|
|
|
46
|
|
|
Textile Effects
|
|
|
19
|
|
|
24
|
|
|
38
|
|
|
Pigments and Additives
|
|
|
103
|
|
|
202
|
|
|
136
|
|
|
Corporate and other
|
|
|
9
|
|
|
26
|
|
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
421
|
|
$
|
663
|
|
$
|
601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
2016
|
|
2015
|
|
2014
|
|
|
Total Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$
|
2,677
|
|
$
|
2,779
|
|
$
|
2,859
|
|
|
Performance Products
|
|
|
2,046
|
|
|
2,264
|
|
|
2,326
|
|
|
Advanced Materials
|
|
|
728
|
|
|
822
|
|
|
828
|
|
|
Textile Effects
|
|
|
523
|
|
|
562
|
|
|
574
|
|
|
Pigments and Additives
|
|
|
2,155
|
|
|
2,494
|
|
|
2,640
|
|
|
Corporate and other
|
|
|
1,060
|
|
|
899
|
|
|
1,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
9,189
|
|
$
|
9,820
|
|
$
|
10,923
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31,
|
|
|
|
|
2016
|
|
2015
|
|
2014
|
|
|
Huntsman International:
|
|
|
|
|
|
|
|
|
|
|
|
Segment adjusted EBITDA(1):
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$
|
569
|
|
$
|
573
|
|
$
|
722
|
|
|
Performance Products
|
|
|
316
|
|
|
460
|
|
|
473
|
|
|
Advanced Materials
|
|
|
223
|
|
|
220
|
|
|
199
|
|
|
Textile Effects
|
|
|
73
|
|
|
63
|
|
|
58
|
|
|
Pigments and Additives
|
|
|
130
|
|
|
61
|
|
|
76
|
|
|
Corporate and other(2)
|
|
|
(180
|
)
|
|
(151
|
)
|
|
(182
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
1,131
|
|
|
1,226
|
|
|
1,346
|
|
|
Reconciliation of adjusted EBITDA to net income:
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(214
|
)
|
|
(214
|
)
|
|
(214
|
)
|
|
Income tax expense—continuing operations
|
|
|
(86
|
)
|
|
(45
|
)
|
|
(43
|
)
|
|
Income tax benefit—discontinued operations
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
Depreciation and amortization
|
|
|
(420
|
)
|
|
(387
|
)
|
|
(430
|
)
|
|
Net income attributable to noncontrolling interests
|
|
|
31
|
|
|
33
|
|
|
22
|
|
|
Other adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Business acquisition and integration expenses and purchase accounting adjustments
|
|
|
(23
|
)
|
|
(53
|
)
|
|
(67
|
)
|
|
EBITDA from discontinued operations
|
|
|
(6
|
)
|
|
(6
|
)
|
|
(10
|
)
|
|
Gain (loss) on disposition of business/assets
|
|
|
119
|
|
|
(2
|
)
|
|
3
|
|
|
Loss on early extinguishment of debt
|
|
|
(3
|
)
|
|
(31
|
)
|
|
(28
|
)
|
|
Certain legal settlements and related expenses
|
|
|
(3
|
)
|
|
(4
|
)
|
|
(3
|
)
|
|
Amortization of pension and postretirement actuarial losses
|
|
|
(73
|
)
|
|
(82
|
)
|
|
(59
|
)
|
|
Net plant incident remediation costs
|
|
|
(1
|
)
|
|
(4
|
)
|
|
—
|
|
|
Restructuring, impairment and plant closing and transition costs
|
|
|
(82
|
)
|
|
(306
|
)
|
|
(162
|
)
|
|
Spin-off separation expenses
|
|
|
(18
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
354
|
|
$
|
127
|
|
$
|
357
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
December 31,
|
|
|
|
|
2016
|
|
2015
|
|
2014
|
|
|
Depreciation and Amortization:
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$
|
114
|
|
$
|
100
|
|
$
|
131
|
|
|
Performance Products
|
|
|
132
|
|
|
119
|
|
|
138
|
|
|
Advanced Materials
|
|
|
35
|
|
|
38
|
|
|
42
|
|
|
Textile Effects
|
|
|
15
|
|
|
17
|
|
|
16
|
|
|
Pigments and Additives
|
|
|
106
|
|
|
93
|
|
|
78
|
|
|
Corporate and other
|
|
|
18
|
|
|
20
|
|
|
25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
420
|
|
$
|
387
|
|
$
|
430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
December 31,
|
|
|
|
|
2016
|
|
2015
|
|
2014
|
|
|
Capital Expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$
|
143
|
|
$
|
181
|
|
$
|
174
|
|
|
Performance Products
|
|
|
131
|
|
|
205
|
|
|
181
|
|
|
Advanced Materials
|
|
|
16
|
|
|
25
|
|
|
46
|
|
|
Textile Effects
|
|
|
19
|
|
|
24
|
|
|
38
|
|
|
Pigments and Additives
|
|
|
103
|
|
|
202
|
|
|
136
|
|
|
Corporate and other
|
|
|
9
|
|
|
26
|
|
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
421
|
|
$
|
663
|
|
$
|
601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
2016
|
|
2015
|
|
2014
|
|
|
Total Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$
|
2,665
|
|
$
|
2,760
|
|
$
|
2,833
|
|
|
Performance Products
|
|
|
2,045
|
|
|
2,262
|
|
|
2,323
|
|
|
Advanced Materials
|
|
|
728
|
|
|
822
|
|
|
828
|
|
|
Textile Effects
|
|
|
523
|
|
|
562
|
|
|
574
|
|
|
Pigments and Additives
|
|
|
2,146
|
|
|
2,480
|
|
|
2,621
|
|
|
Corporate and other
|
|
|
1,368
|
|
|
1,202
|
|
|
1,843
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
9,475
|
|
$
|
10,088
|
|
$
|
11,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 recast 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 and integration expenses and purchase accounting adjustments; (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; (h) restructuring, impairment, plant closing and transition costs; and (i) spin-off separation expenses.
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|
(2)
|
Corporate and other includes unallocated corporate overhead, unallocated foreign exchange gains and losses, LIFO inventory valuation reserve adjustments, 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.
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|
|
|
Year ended December 31,
|
|
|
|
|
2016
|
|
2015
|
|
2014
|
|
|
By Geographic Area
|
|
|
|
|
|
|
|
|
|
|
|
Revenues(1):
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
3,005
|
|
$
|
3,228
|
|
$
|
3,540
|
|
|
China
|
|
|
1,021
|
|
|
1,110
|
|
|
1,200
|
|
|
Germany
|
|
|
676
|
|
|
714
|
|
|
677
|
|
|
Mexico
|
|
|
453
|
|
|
475
|
|
|
825
|
|
|
Other nations
|
|
|
4,502
|
|
|
4,772
|
|
|
5,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
9,657
|
|
$
|
10,299
|
|
$
|
11,578
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
2016
|
|
2015
|
|
2014
|
|
|
Long-lived assets(2):
|
|
|
|
|
|
|
|
|
|
|
|
Huntsman Corporation
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
1,841
|
|
$
|
1,938
|
|
$
|
1,748
|
|
|
Germany
|
|
|
350
|
|
|
362
|
|
|
381
|
|
|
The Netherlands
|
|
|
294
|
|
|
304
|
|
|
314
|
|
|
United Kingdom
|
|
|
254
|
|
|
320
|
|
|
311
|
|
|
China
|
|
|
243
|
|
|
217
|
|
|
221
|
|
|
Italy
|
|
|
203
|
|
|
229
|
|
|
211
|
|
|
Other nations
|
|
|
1,027
|
|
|
1,076
|
|
|
1,237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
4,212
|
|
$
|
4,446
|
|
$
|
4,423
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Huntsman International
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
1,819
|
|
$
|
1,902
|
|
$
|
1,700
|
|
|
Germany
|
|
|
350
|
|
|
362
|
|
|
381
|
|
|
The Netherlands
|
|
|
294
|
|
|
304
|
|
|
314
|
|
|
United Kingdom
|
|
|
254
|
|
|
320
|
|
|
311
|
|
|
China
|
|
|
243
|
|
|
217
|
|
|
221
|
|
|
Italy
|
|
|
203
|
|
|
229
|
|
|
211
|
|
|
Other nations
|
|
|
1,027
|
|
|
1,076
|
|
|
1,237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
4,190
|
|
$
|
4,410
|
|
$
|
4,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Geographic information for revenues is based upon countries into which product is sold.
|
|
(2)
|
Long-lived assets consist of property, plant and equipment, net.
|
|