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)

6 Months Ended

Jun. 30, 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				Six months
	ended				ended
	June 30,				June 30,
	2017		2016		2017		2016
Revenues:
Polyurethanes	$	1,022	$	976	$	1,975	$	1,812
Performance Products		561		566		1,094		1,102
Advanced Materials		260		261		519		527
Textile Effects		205		198		393		383
Pigments and Additives		562		576		1,099		1,116
Corporate and eliminations		6		(33)		5		(41)
Total	$	2,616	$	2,544	$	5,085	$	4,899

Huntsman Corporation:
Segment adjusted EBITDA(1):
Polyurethanes	$	167	$	171		311	$	302
Performance Products		102		86		186		178
Advanced Materials		56		58		110		118
Textile Effects		24		24		45		42
Pigments and Additives		114		31		183		46
Corporate and other(2)		(50)		(45)		(93)		(87)
Total		413		325		742		599
Reconciliation of adjusted EBITDA to net income:
Interest expense		(47)		(50)		(95)		(100)
Income tax expense—continuing operations		(45)		(32)		(68)		(59)
Income tax benefit—discontinued operations		—		—		1		1
Depreciation and amortization		(108)		(109)		(214)		(209)
Net income attributable to noncontrolling interests		16		7		32		13
Other adjustments:
Business acquisition and integration expenses		2		(4)		(1)		(13)
Merger costs		(6)		—		(6)		—
EBITDA of discontinued operations		(1)		(1)		(3)		(3)
Gain on disposition of business/assets		—		—		—		—
Loss on early extinguishment of debt		(1)		(2)		(1)		(2)
Certain legal settlements and related expenses		(1)		—		(1)		(1)
Amortization of pension and postretirement actuarial losses		(22)		(17)		(44)		(33)
Net plant incident credits (costs)		2		7		(3)		6
Restructuring, impairment and plant closing costs		(7)		(30)		(43)		(43)
Business separation expenses		(12)		—		(21)		—
Net income	$	183	$	94	$	275	$	156

(1)

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; (b) merger costs; (c) EBITDA from discontinued operations; (d) loss on early extinguishment of debt; (e) certain legal settlements and related expenses; (f) gain on sale of assets; (g) amortization of pension and postretirement actuarial losses; (h) net plant incident credits (costs); (i) restructuring, impairment and plant closing costs; and (j) business separation expenses.

(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				Six months
	ended				ended
	June 30,				June 30,
	2017		2016		2017		2016
Huntsman International:
Segment adjusted EBITDA(1):
Polyurethanes	$	167	$	171	$	311	$	302
Performance Products		102		86		186		178
Advanced Materials		56		58		110		118
Textile Effects		24		24		45		42
Pigments and Additives		114		31		183		46
Corporate and other(2)		(50)		(43)		(91)		(85)
Total		413		327		744		601
Reconciliation of adjusted EBITDA to net income:
Interest expense		(51)		(53)		(102)		(106)
Income tax expense—continuing operations		(44)		(31)		(67)		(58)
Income tax benefit—discontinued operations		—		—		1		1
Depreciation and amortization		(104)		(106)		(208)		(203)
Net income attributable to noncontrolling interests		16		7		32		13
Other adjustments:
Business acquisition and integration expenses		2		(4)		(1)		(13)
Merger costs		(6)		—		(6)		—
EBITDA of discontinued operations		(1)		(1)		(3)		(3)
Gain on disposition of business/assets		—		—		—		—
Loss on early extinguishment of debt		(1)		(2)		(1)		(2)
Certain legal settlements and related expenses		(1)		—		(1)		(1)
Amortization of pension and postretirement actuarial losses		(24)		(21)		(48)		(37)
Net plant incident costs		2		7		(3)		6
Restructuring, impairment and plant closing costs		(7)		(30)		(43)		(43)
Business separation expenses		(12)		—		(21)		—
Net income	$	182	$	$ 93	$	$ 273	$	$ 155

(1)

(2)