Huntsman Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

OPERATING SEGMENT INFORMATION (Tables)

OPERATING SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2016

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):

	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

Schedule of revenues and long-lived assets by geographical area

	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.

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):

	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.
(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.