Huntsman Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENT INFORMATION (Tables)

OPERATING SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2017

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 EBITDA for each of our reportable operating segments are as follows (dollars in millions):


	Three months
	ended
	March 31,
	2017		2016
Revenues:
Polyurethanes	$	953	$	836
Performance Products		533		536
Advanced Materials		259		266
Textile Effects		188		185
Pigments and Additives		537		540
Corporate and eliminations		(1)		(8)
Total	$	2,469	$	2,355

Huntsman Corporation:
Segment adjusted EBITDA(1):
Polyurethanes	$	144	$	131
Performance Products		84		92
Advanced Materials		54		60
Textile Effects		21		18
Pigments and Additives		69		15
Corporate and other(2)		(43)		(42)
Total		329		274
Reconciliation of adjusted EBITDA to net income:
Interest expense		(48)		(50)
Income tax expense—continuing operations		(23)		(27)
Income tax benefit—discontinued operations		1		1
Depreciation and amortization		(106)		(100)
Net income attributable to noncontrolling interests		16		6
Other adjustments:
Business acquisition and integration expenses		(3)		(9)
EBITDA of discontinued operations		(2)		(2)
Certain legal settlements and related expenses		—		(1)
Amortization of pension and postretirement actuarial losses		(22)		(16)
Net plant incident costs		(5)		(1)
Restructuring, impairment and plant closing costs		(36)		(13)
Business separation expenses		(9)		—
Net income	$	92	$	62

(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


	Three months
	ended
	March 31,
	2017		2016
Huntsman International:
Segment adjusted EBITDA(1):
Polyurethanes	$	144	$	131
Performance Products		84		92
Advanced Materials		54		60
Textile Effects		21		18
Pigments and Additives		69		15
Corporate and other(2)		(41)		(42)
Total		331		274
Reconciliation of adjusted EBITDA to net income:
Interest expense		(51)		(53)
Income tax expense—continuing operations		(23)		(27)
Income tax benefit—discontinued operations		1		1
Depreciation and amortization		(104)		(97)
Net income attributable to noncontrolling interests		16		6
Other adjustments:
Business acquisition and integration expenses		(3)		(9)
EBITDA of discontinued operations		(2)		(2)
Certain legal settlements and related expenses		—		(1)
Amortization of pension and postretirement actuarial losses		(24)		(16)
Net plant incident costs		(5)		(1)
Restructuring, impairment and plant closing costs		(36)		(13)
Business separation expenses		(9)		—
Net income	$	91	$	62

(1)

(2)