Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENT INFORMATION

v2.4.0.6
OPERATING SEGMENT INFORMATION
6 Months Ended
Jun. 30, 2012
OPERATING SEGMENT INFORMATION  
OPERATING SEGMENT INFORMATION

19. OPERATING SEGMENT INFORMATION

        We derive our revenues, earnings and cash flows from the manufacture and sale of a wide variety of differentiated chemical products. We have reported our operations through five segments: Polyurethanes, Performance Products, Advanced Materials, Textile Effects and Pigments. We have organized our business and derived our operating segments around differences in product lines.

        The major products of each reportable operating segment are as follows:

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   epoxy resin compounds and formulations; cross-linking, matting and curing agents; epoxy, acrylic and polyurethane-based adhesives and tooling resin formulations
Textile Effects   textile chemicals and dyes
Pigments   titanium dioxide

        Sales between segments are generally recognized at external market prices and are eliminated in consolidation. We use EBITDA to measure the financial performance of our global business units and for reporting the results of our operating segments. This measure includes all operating items relating to the businesses. The EBITDA of operating segments excludes items that principally apply to our Company as a whole. The revenues and EBITDA for each of our reportable operating segments are as follows (dollars in millions):

 
  Three months
ended
June 30,
  Six months
ended
June 30,
 
 
  2012   2011   2012   2011  

Revenues

                         

Polyurethanes

  $ 1,271   $ 1,135   $ 2,491   $ 2,182  

Performance Products

    770     896     1,577     1,700  

Advanced Materials

    346     360     686     710  

Textile Effects

    195     200     380     390  

Pigments

    407     424     831     788  

Eliminations

    (75 )   (81 )   (138 )   (157 )
                   

Total

  $ 2,914   $ 2,934   $ 5,827   $ 5,613  
                   

Huntsman Corporation

                         

Segment EBITDA(1)

                         

Polyurethanes

  $ 170   $ 142   $ 341   $ 256  

Performance Products

    86     113     175     228  

Advanced Materials

    22     28     53     67  

Textile Effects

    (10 )   (7 )   (15 )   (18 )

Pigments

    131     112     277     196  

Corporate and other(2)

    (44 )   (63 )   (85 )   (144 )
                   

Subtotal

    355     325     746     585  

Discontinued Operations(3)

    (3 )   (2 )   (4 )   (23 )
                   

Total

    352     323     742     562  

Interest expense, net

    (57 )   (65 )   (116 )   (124 )

Income tax expense—continuing operations

    (65 )   (34 )   (125 )   (56 )

Income tax benefit—discontinued operations

    1     1     2     8  

Depreciation and amortization

    (107 )   (111 )   (216 )   (214 )
                   

Net income attributable to Huntsman Corporation

  $ 124   $ 114   $ 287   $ 176  
                   

Huntsman International

                         

Segment EBITDA(1)

                         

Polyurethanes

  $ 170   $ 142   $ 341   $ 256  

Performance Products

    86     113     175     228  

Advanced Materials

    22     28     53     67  

Textile Effects

    (10 )   (7 )   (15 )   (18 )

Pigments

    131     112     277     196  

Corporate and other(2)

    (43 )   (64 )   (84 )   (144 )
                   

Subtotal

    356     324     747     585  

Discontinued Operations(3)

    (3 )   (2 )   (4 )   (23 )
                   

Total

    353     322     743     562  

Interest expense, net

    (61 )   (67 )   (122 )   (131 )

Income tax expense—continuing operations

    (65 )   (34 )   (126 )   (56 )

Income tax benefit—discontinued operations

    1     1     2     8  

Depreciation and amortization

    (101 )   (105 )   (204 )   (203 )
                   

Net income attributable to Huntsman International

  $ 127   $ 117   $ 293   $ 180  
                   

(1)
Segment EBITDA is defined as net income attributable to Huntsman Corporation or Huntsman International, as appropriate, before interest, income tax, depreciation and amortization, and certain Corporate and other items.

(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, non-operating income and expense, benzene sales and gains and losses on the disposition of corporate assets.

(3)
The operating results of our former polymers, base chemicals and Australian styrenics businesses are classified as discontinued operations, and, accordingly, the revenues of these businesses are excluded for all periods presented. The EBITDA of our former polymers, base chemicals and Australian styrenics businesses are included in discontinued operations for all periods presented. For more information, see "Note 17. Discontinued Operations."