Huntsman Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

INVESTMENT IN UNCONSOLIDATED AFFILIATES

INVESTMENT IN UNCONSOLIDATED AFFILIATES

12 Months Ended

Dec. 31, 2018

INVESTMENT IN UNCONSOLIDATED AFFILIATES

7. INVESTMENT IN UNCONSOLIDATED AFFILIATES

Investments in companies in which we exercise significant influence, but do not control, are accounted for using the equity method. Investments in companies in which we do not exercise significant influence are accounted for using the cost method.

Our ownership percentage and investment in unconsolidated affiliates were as follows (dollars in millions):


	December 31,
	2018		2017
Equity Method:
Venator Materials PLC (49%)(1)	$	219	$	—
BASF Huntsman Shanghai Isocyanate Investment BV (50%)(2)		120		116
Nanjing Jinling Huntsman New Material Co., Ltd. (49%)		163		124
Jurong Ningwu New Material Development Co., Ltd. (30%)		24		21
Total equity method investments		526		261
Cost Method:
International Diol Company (4%)		—		5
Total investments	$	526	$	266

(1)

We account for our remaining investment in Venator as an equity method investment using the fair value option. For more information see “Note 4. Discontinued Operations and Business Dispositions—Separation and Deconsolidation of Venator.”

(2)

We own 50% of BASF Huntsman Shanghai Isocyanate Investment BV. BASF Huntsman Shanghai Isocyanate Investment BV owns a 70% interest in SLIC, thus giving us an indirect 35% interest in SLIC.

Summarized Financial Information of Unconsolidated Affiliates

Summarized financial information of our unconsolidated affiliates as of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016 is as follows (dollars in millions):


	December 31,
	2018		2017
Current assets	$	1,548	$	391
Non-current assets		2,444		1,138
Current liabilities		781		358
Non-current liabilities		1,683		567
Noncontrolling interests		8		—


	December 31,
	2018(1)		2017		2016
Revenues	$	2,181	$	1,109	$	645
Gross profit		221		112		49
Income from continuing operations		124		34		16
Net income		124		34		16

(1)We began accounting for our investment in Venator as an equity method investment on December 3, 2018. Therefore, the summarized financial data only includes information for Venator applicable to the period from December 3, 2018 through December 31, 2018.