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, 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		Technologically advanced epoxy, acrylic and polyurethane-based polymers formulations; high performance thermoset resins and curing agents; base liquid and solid resins
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 adjusted EBITDA for each of our reportable operating segments are as follows (dollars in millions):


	Year ended December 31,
	2017		2016		2015
Revenues:
Polyurethanes	$	4,399	$	3,667	$	3,811
Performance Products		2,109		2,126		2,501
Advanced Materials		1,040		1,020		1,103
Textile Effects		776		751		804
Corporate and eliminations		34		(46)		(80)
Total	$	8,358	$	7,518	$	8,139

Huntsman Corporation:
Segment adjusted EBITDA(1):
Polyurethanes	$	850	$	569	$	573
Performance Products		296		316		460
Advanced Materials		219		223		220
Textile Effects		83		73		63
Corporate and other(2)		(189)		(184)		(156)
Total		1,259		997		1,160
Reconciliation of adjusted EBITDA to net income:
Interest expense—continuing operations		(165)		(203)		(205)
Interest (expense) income—discontinued operations		(19)		1		—
Income tax expense—continuing operations		(64)		(109)		(60)
Income tax (expense) benefit—discontinued operations		(67)		24		16
Depreciation and amortization—continuing operations		(319)		(318)		(298)
Depreciation and amortization—discontinued operations		(68)		(114)		(101)
Net income attributable to noncontrolling interests		105		31		33
Other adjustments:
Business acquisition and integration expenses		(19)		(12)		(9)
Merger costs		(28)		—		—
EBITDA from discontinued operations		312		81		(217)
Minority interest of discontinued operations		(49)		(11)		(7)
Loss on early extinguishment of debt		(54)		(3)		(31)
Certain legal settlements and related income (expenses)		11		(1)		(1)
Gain (loss) on sale of assets		9		97		(1)
Amortization of pension and postretirement actuarial losses		(73)		(55)		(66)
Plant incident remediation costs		(16)		—		—
U.S. Tax Reform Act impact on minority interest		6		—		—
Restructuring, impairment and plant closing and transition costs		(20)		(48)		(87)
Net income	$	741	$	357	$	126


	Year ended December 31,
	2017		2016		2015
Depreciation and Amortization:
Polyurethanes	$	116	$	114	$	100
Performance Products		137		132		119
Advanced Materials		33		35		38
Textile Effects		14		15		17
Corporate and other		19		22		24
Total	$	319	$	318	$	298


	Year ended December 31,
	2017		2016		2015
Capital Expenditures:
Polyurethanes	$	162	$	143	$	181
Performance Products		79		131		205
Advanced Materials		21		16		25
Textile Effects		16		19		24
Corporate and other		4		9		26
Total	$	282	$	318	$	461


	December 31,
	2017		2016		2015
Total Assets:
Polyurethanes	$	3,112	$	2,677	$	2,779
Performance Products		2,069		2,046		2,264
Advanced Materials		796		728		822
Textile Effects		564		523		562
Corporate and other		823		975		904
Total	$	7,364	$	6,949	$	7,331

(1)

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. 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 income (expenses); (g) gain (loss) on sale of assets; (h) amortization of pension and postretirement actuarial losses; (i) plant incident remediation costs; (j) U.S. Tax Reform Act impact on minority interest; and (k) 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, nonoperating income and expense, benzene sales and gains and losses on the disposition of corporate assets. .

Schedule of revenues and long-lived assets by geographical area


	Year ended December 31,
	2017		2016		2015
By Geographic Area
Revenues(1):
United States	$	2,729	$	2,514	$	2,727
China		1,147		908		1,013
Germany		508		466		479
Mexico		481		433		455
Other nations		3,493		3,197		3,465
Total	$	8,358	$	7,518	$	8,139


	December 31,
	2017		2016		2015
Long-lived assets(2):
Huntsman Corporation
United States	$	1,597	$	1,570	$	1,677
The Netherlands		343		294		304
China		268		235		208
Saudi Arabia		172		185		196
Germany		163		136		147
Switzerland		112		110		120
Singapore		100		110		76
Other nations		343		394		442
Total	$	3,098	$	3,034	$	3,170

Huntsman International
United States	$	1,594	$	1,548	$	1,641
The Netherlands		343		294		304
China		268		235		208
Saudi Arabia		172		185		196
Germany		163		136		147
Switzerland		112		110		120
Singapore		100		110		76
Other nations		343		394		442
Total	$	3,095	$	3,012	$	3,134

(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 LLC AND SUBSIDIARIES

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


	Year ended December 31,
	2017		2016		2015
Huntsman International:
Segment adjusted EBITDA(1):
Polyurethanes	$	850	$	569	$	573
Performance Products		296		316		460
Advanced Materials		219		223		220
Textile Effects		83		73		63
Corporate and other(2)		(185)		(180)		(151)
Total		1,263		1,001		1,165
Reconciliation of adjusted EBITDA to net income:
Interest expense—continuing operations		(181)		(215)		(214)
Interest (expense) income—discontinued operations		(19)		1		—
Income tax expense—continuing operations		(61)		(108)		(59)
Income tax (expense) benefit—discontinued operations		(67)		24		16
Depreciation and amortization—continuing operations		(311)		(306)		(286)
Depreciation and amortization—discontinued operations		(68)		(114)		(101)
Net income attributable to noncontrolling interests		105		31		33
Other adjustments:
Business acquisition and integration expenses		(19)		(12)		(9)
Merger costs		(28)		—		—
EBITDA from discontinued operations		309		76		(223)
Minority interest of discontinued operations		(49)		(11)		(7)
Loss on early extinguishment of debt		(54)		(3)		(31)
Certain legal settlements and related income (expenses)		11		(1)		(1)
Gain (loss) on sale of assets		9		97		(1)
Amortization of pension and postretirement actuarial losses		(76)		(58)		(68)
Plant incident remediation costs		(16)		—		—
U.S. Tax Reform Act impact on minority interest		6		—		—
Restructuring, impairment and plant closing and transition costs		(20)		(48)		(87)
Net income	$	734	$	354	$	127


	Year ended December 31,
	2017		2016		2015
Depreciation and Amortization:
Polyurethanes	$	116	$	114	$	100
Performance Products		137		132		119
Advanced Materials		33		35		38
Textile Effects		14		15		17
Corporate and other		11		10		12
Total	$	311	$	306	$	286


	Year ended December 31,
	2017		2016		2015
Capital Expenditures:
Polyurethanes	$	162	$	143	$	181
Performance Products		79		131		205
Advanced Materials		21		16		25
Textile Effects		16		19		24
Corporate and other		4		9		26
Total	$	282	$	318	$	461


	December 31,
	2017		2016		2015
Total Assets:
Polyurethanes	$	3,109	$	2,665	$	2,760
Performance Products		2,069		2,045		2,262
Advanced Materials		796		728		822
Textile Effects		564		523		562
Corporate and other		1,167		1,274		1,193
Total	$	7,705	$	7,235	$	7,599

(1)

(2)