Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENT INFORMATION (Tables)

v3.8.0.1
OPERATING SEGMENT INFORMATION (Tables)
 9 Months Ended
Sep. 30, 2017
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

 

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

 

Nine months

 

 

ended

 

ended

 

 

September 30, 

 

September 30, 

 

    

2017

    

2016

    

2017

    

2016

Revenues:

    

 

 

 

 

 

 

 

 

 

 

 

Polyurethanes

 

$

1,197

 

$

891

 

$

3,172

 

$

2,703

Performance Products

 

 

501

 

 

509

 

 

1,595

 

 

1,611

Advanced Materials

 

 

263

 

 

247

 

 

782

 

 

774

Textile Effects

 

 

193

 

 

184

 

 

586

 

 

567

Corporate and eliminations

 

 

15

 

 

 —

 

 

20

 

 

(41)

Total

 

$

2,169

 

$

1,831

 

$

6,155

 

$

5,614

 

 

 

 

 

 

 

 

 

 

 

 

 

Huntsman Corporation:

 

 

 

 

 

 

 

 

 

 

 

 

Segment adjusted EBITDA(1):

 

 

 

 

 

 

 

 

 

 

 

 

Polyurethanes

 

$

245

 

$

137

 

$

556

 

$

439

Performance Products

 

 

63

 

 

70

 

 

249

 

 

248

Advanced Materials

 

 

56

 

 

55

 

 

166

 

 

173

Textile Effects

 

 

19

 

 

17

 

 

64

 

 

59

Corporate and other(2)

 

 

(43)

 

 

(45)

 

 

(136)

 

 

(132)

Total

 

 

340

 

 

234

 

 

899

 

 

787

Reconciliation of adjusted EBITDA to net income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense—continuing operations

 

 

(39)

 

 

(52)

 

 

(134)

 

 

(153)

Interest (expense) income—discontinued operations

 

 

(8)

 

 

 —

 

 

(8)

 

 

 1

Income tax expense—continuing operations

 

 

(35)

 

 

(6)

 

 

(78)

 

 

(65)

Income tax (expense) benefit—discontinued operations

 

 

(17)

 

 

 7

 

 

(41)

 

 

 8

Depreciation and amortization—continuing operations

 

 

(80)

 

 

(83)

 

 

(235)

 

 

(238)

Depreciation and amortization—discontinued operations

 

 

(9)

 

 

(30)

 

 

(68)

 

 

(84)

Net income attributable to noncontrolling interests

 

 

32

 

 

 9

 

 

64

 

 

22

Other adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Business acquisition and integration expenses

 

 

(10)

 

 

(6)

 

 

(17)

 

 

(11)

Merger costs

 

 

(12)

 

 

 —

 

 

(18)

 

 

 —

EBITDA from discontinued operations

 

 

97

 

 

47

 

 

218

 

 

63

Minority interest of discontinued operations

 

 

(12)

 

 

(3)

 

 

(18)

 

 

(8)

Loss on early extinguishment of debt

 

 

(35)

 

 

(1)

 

 

(36)

 

 

(3)

Certain legal settlements and related expenses

 

 

 —

 

 

 —

 

 

(1)

 

 

 —

Gain on sale of assets

 

 

 —

 

 

 —

 

 

 8

 

 

 —

Amortization of pension and postretirement actuarial losses

 

 

(19)

 

 

(14)

 

 

(55)

 

 

(42)

Plant incident remediation costs

 

 

(13)

 

 

 —

 

 

(13)

 

 

 —

Restructuring, impairment and plant closing and transition costs

 

 

(1)

 

 

(38)

 

 

(13)

 

 

(57)

Net income

 

$

179

 

$

64

 

$

454

 

$

220

 

(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) minority interest of discontinued operations; (e) loss on early extinguishment of debt; (f) certain legal settlements and related expenses; (g) gain on sale of assets; (h) amortization of pension and postretirement actuarial losses; (i) net plant incident credits (costs); and (j) restructuring, impairment and 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

 

Nine months

 

 

ended

 

ended

 

 

September 30, 

 

September 30, 

 

    

2017

    

2016

    

2017

    

2016

Huntsman International:

 

 

 

 

 

 

 

 

 

 

 

 

Segment adjusted EBITDA(1):

 

 

 

 

 

 

 

 

 

 

 

 

Polyurethanes

 

$

245

 

$

137

 

$

556

 

$

439

Performance Products

 

 

63

 

 

70

 

 

249

 

 

248

Advanced Materials

 

 

56

 

 

55

 

 

166

 

 

173

Textile Effects

 

 

19

 

 

17

 

 

64

 

 

59

Corporate and other(2)

 

 

(41)

 

 

(43)

 

 

(132)

 

 

(128)

Total

 

 

342

 

 

236

 

 

903

 

 

791

Reconciliation of adjusted EBITDA to net income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense—continuing operations

 

 

(44)

 

 

(55)

 

 

(146)

 

 

(162)

Interest (expense) income—discontinued operations

 

 

(8)

 

 

 —

 

 

(8)

 

 

 1

Income tax expense—continuing operations

 

 

(34)

 

 

(7)

 

 

(77)

 

 

(65)

Income tax (expense) benefit—discontinued operations

 

 

(17)

 

 

 7

 

 

(41)

 

 

 8

Depreciation and amortization—continuing operations

 

 

(78)

 

 

(79)

 

 

(227)

 

 

(228)

Depreciation and amortization—discontinued operations

 

 

(9)

 

 

(30)

 

 

(68)

 

 

(84)

Net income attributable to noncontrolling interests

 

 

32

 

 

 9

 

 

64

 

 

22

Other adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Business acquisition and integration expenses

 

 

(10)

 

 

(6)

 

 

(17)

 

 

(11)

Merger costs

 

 

(12)

 

 

 —

 

 

(18)

 

 

 —

EBITDA from discontinued operations

 

 

96

 

 

45

 

 

215

 

 

58

Minority interest of discontinued operations

 

 

(12)

 

 

(3)

 

 

(18)

 

 

(8)

Loss on early extinguishment of debt

 

 

(35)

 

 

(1)

 

 

(36)

 

 

(3)

Certain legal settlements and related expenses

 

 

 —

 

 

 —

 

 

(1)

 

 

 —

Gain on sale of assets

 

 

 —

 

 

 —

 

 

 8

 

 

 —

Amortization of pension and postretirement actuarial losses

 

 

(20)

 

 

(15)

 

 

(57)

 

 

(44)

Plant incident remediation costs

 

 

(13)

 

 

 —

 

 

(13)

 

 

 —

Restructuring, impairment and plant closing and transition costs

 

 

(1)

 

 

(38)

 

 

(13)

 

 

(57)

Net income

 

$

177

 

$

63

 

$

450

 

$

218

 

(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.