Annual report pursuant to Section 13 and 15(d)

OPERATING SEGMENT INFORMATION (Tables)

v3.10.0.1
OPERATING SEGMENT INFORMATION (Tables)
12 Months Ended
Dec. 31, 2018
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 adjusted EBITDA for each of our reportable operating segments are as follows (dollars in millions):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 

 

 

2018

    

2017

    

2016

Revenues:

 

 

           

 

 

           

 

 

           

Polyurethanes

 

$

5,094

 

$

4,399

 

$

3,667

Performance Products

 

 

2,355

 

 

2,109

 

 

2,126

Advanced Materials

 

 

1,116

 

 

1,040

 

 

1,020

Textile Effects

 

 

824

 

 

776

 

 

751

Corporate and eliminations

 

 

(10)

 

 

34

 

 

(46)

Total

 

$

9,379

 

$

8,358

 

$

7,518

 

 

 

 

 

 

 

 

 

 

Huntsman Corporation:

 

 

 

 

 

 

 

 

 

Segment adjusted EBITDA(1):

 

 

 

 

 

 

 

 

 

Polyurethanes

 

$

946

 

$

850

 

$

569

Performance Products

 

 

367

 

 

296

 

 

316

Advanced Materials

 

 

225

 

 

219

 

 

223

Textile Effects

 

 

101

 

 

83

 

 

73

Corporate and other(2)

 

 

(170)

 

 

(189)

 

 

(184)

Total

 

 

1,469

 

 

1,259

 

 

997

Reconciliation of adjusted EBITDA to net income:

 

 

 

 

 

 

 

 

 

Interest expense—continuing operations

 

 

(115)

 

 

(165)

 

 

(203)

Interest (expense) income—discontinued operations

 

 

(36)

 

 

(19)

 

 

 1

Income tax expense—continuing operations

 

 

(97)

 

 

(64)

 

 

(109)

Income tax (expense) benefit—discontinued operations

 

 

(34)

 

 

(67)

 

 

24

Depreciation and amortization—continuing operations

 

 

(343)

 

 

(319)

 

 

(318)

Depreciation and amortization—discontinued operations

 

 

 —

 

 

(68)

 

 

(114)

Net income attributable to noncontrolling interests

 

 

313

 

 

105

 

 

31

Other adjustments:

 

 

 

 

 

 

 

 

 

Business acquisition and integration expenses

 

 

(5)

 

 

(19)

 

 

(12)

Purchase accounting inventory adjustments

 

 

(4)

 

 

 —

 

 

 —

Merger costs

 

 

(2)

 

 

(28)

 

 

 —

EBITDA from discontinued operations

 

 

(125)

 

 

312

 

 

81

Noncontrolling interest of discontinued operations

 

 

(232)

 

 

(49)

 

 

(11)

Fair value adjustments to Venator investment

 

 

(62)

 

 

 —

 

 

 —

Loss on early extinguishment of debt

 

 

(3)

 

 

(54)

 

 

(3)

Certain legal settlements and related (expenses) income

 

 

(6)

 

 

11

 

 

(1)

Gain on sale of assets

 

 

 —

 

 

 9

 

 

97

Amortization of pension and postretirement actuarial losses

 

 

(71)

 

 

(73)

 

 

(55)

Plant incident remediation costs

 

 

(1)

 

 

(16)

 

 

 —

U.S. Tax Reform Act impact on noncontrolling interest

 

 

 —

 

 

 6

 

 

 —

Restructuring, impairment and plant closing and transition credits (costs)

 

 

 4

 

 

(20)

 

 

(48)

Net income

 

$

650

 

$

741

 

$

357

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 

 

    

2018

    

2017

    

2016

Depreciation and Amortization:

 

 

           

 

 

           

 

 

           

Polyurethanes

 

$

129

 

$

116

 

$

114

Performance Products

 

 

145

 

 

137

 

 

132

Advanced Materials

 

 

37

 

 

33

 

 

35

Textile Effects

 

 

16

 

 

14

 

 

15

Corporate and other

 

 

16

 

 

19

 

 

22

Total

 

$

343

 

$

319

 

$

318

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 

 

    

2018

    

2017

    

2016

Capital Expenditures:

 

 

           

 

 

           

 

 

           

Polyurethanes

 

$

168

 

$

162

 

$

143

Performance Products

 

 

95

 

 

79

 

 

131

Advanced Materials

 

 

21

 

 

21

 

 

16

Textile Effects

 

 

21

 

 

16

 

 

19

Corporate and other

 

 

 8

 

 

 4

 

 

 9

Total

 

$

313

 

$

282

 

$

318

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 

 

    

 

2018

    

 

2017

    

 

2016

Total Assets:

 

 

           

 

 

           

 

 

           

Polyurethanes

 

$

3,427

 

$

3,112

 

$

2,677

Performance Products

 

 

2,088

 

 

2,069

 

 

2,046

Advanced Materials

 

 

796

 

 

796

 

 

728

Textile Effects

 

 

571

 

 

564

 

 

523

Corporate and other

 

 

1,071

 

 

823

 

 

975

Total

 

$

7,953

 

$

7,364

 

$

6,949

 

 


(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) noncontrolling interest of discontinued operations; (e) fair value adjustments to Venator investment; (f) loss on early extinguishment of debt; (g) certain legal settlements and related income (expenses); (h) gain (loss) on sale of assets; (i) amortization of pension and postretirement actuarial losses; (j) plant incident remediation costs; (k) U.S. Tax Reform Act impact on noncontrolling interest; and (l) restructuring, impairment, plant closing and transition credits (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, 

 

    

 

2018

    

 

2017

    

 

2016

Revenues by geographic area(1):

 

 

 

 

 

 

 

 

 

United States

 

$

3,160

 

$

2,729

 

$

2,514

China

 

 

1,281

 

 

1,147

 

 

908

Mexico

 

 

587

 

 

481

 

 

433

Germany

 

 

537

 

 

508

 

 

466

Other nations

 

 

3,814

 

 

3,493

 

 

3,197

Total

 

$

9,379

 

$

8,358

 

$

7,518

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 

 

    

 

2018

    

 

2017

    

 

2016

Long-lived assets(2):

 

 

           

 

 

           

 

 

           

Huntsman Corporation

 

 

 

 

 

 

 

 

 

United States

 

$

1,637

 

$

1,597

 

$

1,570

The Netherlands

 

 

331

 

 

343

 

 

294

China

 

 

247

 

 

268

 

 

235

Saudi Arabia

 

 

161

 

 

172

 

 

185

Germany

 

 

143

 

 

163

 

 

136

Switzerland

 

 

108

 

 

112

 

 

110

Singapore

 

 

96

 

 

100

 

 

110

Other nations

 

 

341

 

 

343

 

 

394

Total

 

$

3,064

 

$

3,098

 

$

3,034

 

 

 

 

 

 

 

 

 

 

Huntsman International

 

 

 

 

 

 

 

 

 

United States

 

$

1,637

 

$

1,594

 

$

1,548

The Netherlands

 

 

331

 

 

343

 

 

294

China

 

 

247

 

 

268

 

 

235

Saudi Arabia

 

 

161

 

 

172

 

 

185

Germany

 

 

143

 

 

163

 

 

136

Switzerland

 

 

108

 

 

112

 

 

110

Singapore

 

 

96

 

 

100

 

 

110

Other nations

 

 

341

 

 

343

 

 

394

Total

 

$

3,064

 

$

3,095

 

$

3,012

 


(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, 

Huntsman International:

 

2018

    

2017

    

2016

Segment adjusted EBITDA(1):

 

 

           

 

 

           

 

 

           

Polyurethanes

 

$

946

 

$

850

 

$

569

Performance Products

 

 

367

 

 

296

 

 

316

Advanced Materials

 

 

225

 

 

219

 

 

223

Textile Effects

 

 

101

 

 

83

 

 

73

Corporate and other(2)

 

 

(166)

 

 

(185)

 

 

(180)

Total

 

 

1,473

 

 

1,263

 

 

1,001

Reconciliation of adjusted EBITDA to net income:

 

 

 

 

 

 

 

 

 

Interest expense—continuing operations

 

 

(136)

 

 

(181)

 

 

(215)

Interest (expense) income—discontinued operations

 

 

(36)

 

 

(19)

 

 

 1

Income tax expense—continuing operations

 

 

(93)

 

 

(61)

 

 

(108)

Income tax (expense) benefit—discontinued operations

 

 

(34)

 

 

(67)

 

 

24

Depreciation and amortization—continuing operations

 

 

(340)

 

 

(311)

 

 

(306)

Depreciation and amortization—discontinued operations

 

 

 —

 

 

(68)

 

 

(114)

Net income attributable to noncontrolling interests

 

 

313

 

 

105

 

 

31

Other adjustments:

 

 

 

 

 

 

 

 

 

Business acquisition and integration expenses

 

 

(5)

 

 

(19)

 

 

(12)

Purchase accounting inventory adjustments

 

 

(4)

 

 

 —

 

 

 —

Merger costs

 

 

(2)

 

 

(28)

 

 

 —

EBITDA from discontinued operations

 

 

(125)

 

 

309

 

 

76

Noncontrolling interest of discontinued operations

 

 

(232)

 

 

(49)

 

 

(11)

Fair value adjustments to Venator investment

 

 

(62)

 

 

 —

 

 

 —

Loss on early extinguishment of debt

 

 

(3)

 

 

(54)

 

 

(3)

Certain legal settlements and related (expenses) income

 

 

(6)

 

 

11

 

 

(1)

Gain on sale of assets

 

 

 —

 

 

 9

 

 

97

Amortization of pension and postretirement actuarial losses

 

 

(75)

 

 

(76)

 

 

(58)

Plant incident remediation costs

 

 

(1)

 

 

(16)

 

 

 —

U.S. Tax Reform Act impact on noncontrolling interest

 

 

 —

 

 

 6

 

 

 —

Restructuring, impairment and plant closing and transition credits (costs)

 

 

 4

 

 

(20)

 

 

(48)

Net income

 

$

636

 

$

734

 

$

354

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 

 

    

 

2018

    

 

2017

    

 

2016

Depreciation and Amortization:

 

 

           

 

 

           

 

 

           

Polyurethanes

 

$

129

 

$

116

 

$

114

Performance Products

 

 

145

 

 

137

 

 

132

Advanced Materials

 

 

37

 

 

33

 

 

35

Textile Effects

 

 

16

 

 

14

 

 

15

Corporate and other

 

 

13

 

 

11

 

 

10

Total

 

$

340

 

$

311

 

$

306

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 

 

    

 

2018

    

 

2017

    

 

2016

Capital Expenditures:

 

 

           

 

 

           

 

 

           

Polyurethanes

 

$

163

 

$

162

 

$

143

Performance Products

 

 

100

 

 

79

 

 

131

Advanced Materials

 

 

20

 

 

21

 

 

16

Textile Effects

 

 

20

 

 

16

 

 

19

Corporate and other

 

 

10

 

 

 4

 

 

 9

Total

 

$

313

 

$

282

 

$

318

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 

 

    

 

2018

    

 

2017

    

 

2016

Total Assets:

 

 

           

 

 

           

 

 

           

Polyurethanes

 

$

3,427

 

$

3,109

 

$

2,665

Performance Products

 

 

2,088

 

 

2,069

 

 

2,045

Advanced Materials

 

 

796

 

 

796

 

 

728

Textile Effects

 

 

571

 

 

564

 

 

523

Corporate and other

 

 

1,453

 

 

1,167

 

 

1,274

Total

 

$

8,335

 

$

7,705

 

$

7,235

 


(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) noncontrolling interest of discontinued operations; (e) fair value adjustments to Venator investment; (f) loss on early extinguishment of debt; (g) certain legal settlements and related income (expenses); (h) gain (loss) on sale of assets; (i) amortization of pension and postretirement actuarial losses; (j) plant incident remediation costs; (k) U.S. Tax Reform Act impact on noncontrolling interest; and (l) restructuring, impairment, plant closing and transition credits (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.