Annual report pursuant to Section 13 and 15(d)

OPERATING SEGMENT INFORMATION (Tables)

v3.6.0.2
OPERATING SEGMENT INFORMATION (Tables)
12 Months Ended
Dec. 31, 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):

                                                                                                                                                                                    

 

 

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

 

 

 

 

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

 

 

 

 

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.