Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATING FINANCIAL INFORMATION OF HUNTSMAN INTERNATIONAL LLC (UNAUDITED)

v2.4.0.6
CONDENSED CONSOLIDATING FINANCIAL INFORMATION OF HUNTSMAN INTERNATIONAL LLC (UNAUDITED) (HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES)
6 Months Ended
Jun. 30, 2012
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
 
CONDENSED CONSOLIDATING FINANCIAL INFORMATION OF HUNTSMAN INTERNATIONAL LLC (UNAUDITED)  
CONDENSED CONSOLIDATING FINANCIAL INFORMATION OF HUNTSMAN INTERNATIONAL LLC (UNAUDITED)

20. CONDENSED CONSOLIDATING FINANCIAL INFORMATION OF HUNTSMAN INTERNATIONAL LLC (UNAUDITED)

        The following condensed consolidating financial statements (unaudited) present, in separate columns, financial information for the following: Huntsman International (on a parent only basis), with its investment in subsidiaries recorded under the equity method; the Guarantors on a combined, and where appropriate, consolidated basis; and the nonguarantors on a combined, and where appropriate, consolidated basis. Additional columns present eliminating adjustments and consolidated totals as of June 30, 2012 and December 31, 2011 and for the three and six months ended June 30, 2012 and 2011. There are no contractual restrictions limiting transfers of cash from the Guarantors to Huntsman International. Each of the Guarantors is 100% owned by Huntsman International and has fully and unconditionally guaranteed Huntsman International's outstanding notes on a joint and several basis.

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED)
AS OF JUNE 30, 2012
(Dollars in Millions)

 
  Parent
Company
  Guarantors   Nonguarantors   Eliminations   Consolidated
Huntsman
International LLC
 

ASSETS

                               

Current assets:

                               

Cash and cash equivalents

  $ 7   $ 4   $ 190   $   $ 201  

Restricted cash

            9         9  

Accounts and notes receivable, net

    26     141     1,510         1,677  

Accounts receivable from affiliates

    1,385     3,678     102     (4,960 )   205  

Inventories

    80     274     1,299     (8 )   1,645  

Prepaid expenses

    5     1     29         35  

Deferred income taxes

    6         49     (15 )   40  

Other current assets

    119     4     205     (119 )   209  
                       

Total current assets

    1,628     4,102     3,393     (5,102 )   4,021  

Property, plant and equipment, net

    381     859     2,194     2     3,436  

Investment in unconsolidated affiliates

    5,675     1,643     149     (7,244 )   223  

Intangible assets, net

    34     2     48     (4 )   80  

Goodwill

    (16 )   82     40         106  

Deferred income taxes

    152         186     (149 )   189  

Notes receivable from affiliates

    20     903     2     (923 )   2  

Other noncurrent assets

    91     135     259     1     486  
                       

Total assets

  $ 7,965   $ 7,726   $ 6,271   $ (13,419 ) $ 8,543  
                       

LIABILITIES AND EQUITY

                               

Current liabilities:

                               

Accounts payable

  $ 57   $ 216   $ 703   $   $ 976  

Accounts payable to affiliates

    2,732     1,071     1,197     (4,960 )   40  

Accrued liabilities

    111     226     423     (119 )   641  

Deferred income taxes

        39     7     (17 )   29  

Note payable to affiliate

    100                 100  

Current portion of debt

    17         126         143  
                       

Total current liabilities

    3,017     1,552     2,456     (5,096 )   1,929  

Long-term debt

    3,045         556         3,601  

Notes payable to affiliates

    519         927     (923 )   523  

Deferred income taxes

        181     102     (48 )   235  

Other noncurrent liabilities

    173     162     591         926  
                       

Total liabilities

    6,754     1,895     4,632     (6,067 )   7,214  

Equity

                               

Huntsman International LLC members' equity:

                               

Members' equity

    3,097     4,742     2,398     (7,140 )   3,097  

Accumulated deficit

    (1,248 )   (433 )   (274 )   707     (1,248 )

Accumulated other comprehensive (loss) income

    (638 )   1,522     (558 )   (964 )   (638 )
                       

Total Huntsman International LLC members' equity

    1,211     5,831     1,566     (7,397 )   1,211  

Noncontrolling interests in subsidiaries

            73     45     118  
                       

Total equity

    1,211     5,831     1,639     (7,352 )   1,329  
                       

Total liabilities and equity

  $ 7,965   $ 7,726   $ 6,271   $ (13,419 ) $ 8,543  
                       


HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED)
AS OF DECEMBER 31, 2011
(Dollars in Millions)

 
  Parent
Company
  Guarantors   Nonguarantors   Eliminations   Consolidated
Huntsman
International LLC
 

ASSETS

                               

Current assets:

                               

Cash and cash equivalents

  $ 4   $   $ 227   $   $ 231  

Restricted cash

            8         8  

Accounts and notes receivable, net

    13     151     1,365         1,529  

Accounts receivable from affiliates

    1,105     3,041     93     (4,091 )   148  

Inventories

    105     271     1,167     (4 )   1,539  

Prepaid expenses

    9     7     43     (13 )   46  

Deferred income taxes

    6         49     (15 )   40  

Other current assets

    90     9     222     (101 )   220  
                       

Total current assets

    1,332     3,479     3,174     (4,224 )   3,761  

Property, plant and equipment, net

    393     868     2,247     2     3,510  

Investment in unconsolidated affiliates

    5,286     1,460     147     (6,691 )   202  

Intangible assets, net

    42     2     52     (3 )   93  

Goodwill

    (16 )   82     48         114  

Deferred income taxes

    154         191     (182 )   163  

Notes receivable from affiliates

    20     920     5     (940 )   5  

Other noncurrent assets

    81     137     264         482  
                       

Total assets

  $ 7,292   $ 6,948   $ 6,128   $ (12,038 ) $ 8,330  
                       

LIABILITIES AND EQUITY

                               

Current liabilities:

                               

Accounts payable

  $ 53   $ 205   $ 604   $   $ 862  

Accounts payable to affiliates

    2,244     822     1,089     (4,091 )   64  

Accrued liabilities

    117     204     487     (114 )   694  

Deferred income taxes

        39     7     (17 )   29  

Note payable to affiliate

    100                 100  

Current portion of debt

    33         179         212  
                       

Total current liabilities

    2,547     1,270     2,366     (4,222 )   1,961  

Long-term debt

    3,128         602         3,730  

Notes payable to affiliates

    435         944     (940 )   439  

Deferred income taxes

    9     79     98     (80 )   106  

Other noncurrent liabilities

    196     163     644         1,003  
                       

Total liabilities

    6,315     1,512     4,654     (5,242 )   7,239  

Equity

                               

Huntsman International LLC members' equity:

                               

Members' equity

    3,081     4,754     2,343     (7,097 )   3,081  

Accumulated deficit

    (1,493 )   (820 )   (396 )   1,216     (1,493 )

Accumulated other comprehensive (loss) income

    (611 )   1,502     (546 )   (956 )   (611 )
                       

Total Huntsman International LLC members' equity

    977     5,436     1,401     (6,837 )   977  

Noncontrolling interests in subsidiaries

            73     41     114  
                       

Total equity

    977     5,436     1,474     (6,796 )   1,091  
                       

Total liabilities and equity

  $ 7,292   $ 6,948   $ 6,128   $ (12,038 ) $ 8,330  
                       

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED)
THREE MONTHS ENDED JUNE 30, 2012
(Dollars in Millions)

 
  Parent
Company
  Guarantors   Nonguarantors   Eliminations   Consolidated
Huntsman
International LLC
 

Revenues:

                               

Trade sales, services and fees, net

  $ 250   $ 861   $ 1,751   $   $ 2,862  

Related party sales

    168     149     291     (556 )   52  
                       

Total revenues

    418     1,010     2,042     (556 )   2,914  

Cost of goods sold

    358     799     1,758     (533 )   2,382  
                       

Gross profit

    60     211     284     (23 )   532  

Selling, general and administrative

    47     25     158         230  

Research and development

    11     9     18         38  

Other operating (income) expense

    (1 )   12     (9 )       2  

Restructuring, impairment and plant closing costs

    1     1     3         5  
                       

Operating income

    2     164     114     (23 )   257  

Interest (expense) income, net

    (52 )   11     (20 )       (61 )

Equity in income of investment in affiliates and subsidiaries

    184     70     1     (254 )   1  

Other (expense) income

    (22 )       1     22     1  
                       

Income from continuing operations before income taxes

    112     245     96     (255 )   198  

Income tax benefit (expense)

    14     (59 )   (20 )       (65 )
                       

Income from continuing operations

    126     186     76     (255 )   133  

Income (loss) from discontinued operations, net of tax

    1     1     (4 )       (2 )
                       

Net income

    127     187     72     (255 )   131  

Net income attributable to noncontrolling interests

        (1 )   (4 )   1     (4 )
                       

Net income attributable to Huntsman International LLC

  $ 127   $ 186   $ 68   $ (254 ) $ 127  
                       

Net income

 
$

127
 
$

187
 
$

72
 
$

(255

)

$

131
 

Other comprehensive loss

   
(120

)
 
(137

)
 
(95

)
 
230
   
(122

)

Comprehensive income attributable to noncontrolling interests

        (1 )       (1 )   (2 )
                       

Comprehensive income (loss) attributable to Huntsman International LLC

  $ 7   $ 49   $ (23 ) $ (26 ) $ 7  
                       


HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED)
THREE MONTHS ENDED JUNE 30, 2011
(Dollars in Millions)

 
  Parent
Company
  Guarantors   Nonguarantors   Eliminations   Consolidated
Huntsman
International LLC
 

Revenues:

                               

Trade sales, services and fees, net

  $ 231   $ 861   $ 1,807   $ (3 ) $ 2,896  

Related party sales

    110     149     283     (504 )   38  
                       

Total revenues

    341     1,010     2,090     (507 )   2,934  

Cost of goods sold

    298     816     1,802     (487 )   2,429  
                       

Gross profit

    43     194     288     (20 )   505  

Selling, general and administrative

    45     31     179         255  

Research and development

    13     8     21         42  

Other operating income

    (4 )   (11 )   (11 )       (26 )

Restructuring, impairment and plant closing costs

            9         9  
                       

Operating (loss) income

    (11 )   166     90     (20 )   225  

Interest (expense) income, net

    (54 )   11     (24 )       (67 )

Equity in income of investment in affiliates and subsidiaries

    162     53     3     (216 )   2  

Other (expense) income

    (16 )           17     1  
                       

Income from continuing operations before income taxes

    81     230     69     (219 )   161  

Income tax benefit (expense)

    36     (60 )   (10 )       (34 )
                       

Income from continuing operations

    117     170     59     (219 )   127  

Loss from discontinued operations, net of tax

            (1 )       (1 )
                       

Income before extraordinary gain

    117     170     58     (219 )   126  

Extraordinary gain on the acquisition of a business, net of tax of nil

            1         1  
                       

Net income

    117     170     59     (219 )   127  

Net income attributable to noncontrolling interests

        (1 )   (4 )   (5 )   (10 )
                       

Net income attributable to Huntsman International LLC

  $ 117   $ 169   $ 55   $ (224 ) $ 117  
                       

Net income

 
$

117
 
$

170
 
$

59
 
$

(219

)

$

127
 

Other comprehensive income

   
60
   
101
   
61
   
(161

)
 
61
 

Comprehensive income attributable to noncontrolling interests

            (5 )   (5 )   (10 )
                       

Comprehensive income attributable to Huntsman International LLC

  $ 177   $ 271   $ 115   $ (385 ) $ 178  
                       

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED)
SIX MONTHS ENDED JUNE 30, 2012
(Dollars in Millions)

 
  Parent
Company
  Guarantors   Nonguarantors   Eliminations   Consolidated
Huntsman
International LLC
 

Revenues:

                               

Trade sales, services and fees, net

  $ 478   $ 1,816   $ 3,421   $   $ 5,715  

Related party sales

    349     254     578     (1,069 )   112  
                       

Total revenues

    827     2,070     3,999     (1,069 )   5,827  

Cost of goods sold

    709     1,611     3,464     (1,043 )   4,741  
                       

Gross profit

    118     459     535     (26 )   1,086  

Selling, general and administrative

    99     51     299         449  

Research and development

    22     18     37         77  

Other operating (income) expense

    (3 )   7     3         7  

Restructuring, impairment and plant closing costs

    1     1     3         5  
                       

Operating (loss) income

    (1 )   382     193     (26 )   548  

Interest (expense) income, net

    (103 )   21     (40 )       (122 )

Equity in income of investment in affiliates and subsidiaries

    385     122     3     (507 )   3  

Loss on early extinguishment of debt

    (1 )               (1 )

Other (expense) income

    (22 )       1     22     1  
                       

Income from continuing operations before income taxes

    258     525     157     (511 )   429  

Income tax benefit (expense)

    33     (134 )   (25 )       (126 )
                       

Income from continuing operations

    291     391     132     (511 )   303  

Income (loss) from discontinued operations, net of tax

    2         (8 )       (6 )
                       

Net income

    293     391     124     (511 )   297  

Net income attributable to noncontrolling interests

        (1 )   (5 )   2     (4 )
                       

Net income attributable to Huntsman International LLC

  $ 293   $ 390   $ 119   $ (509 ) $ 293  
                       

Net income

 
$

293
 
$

391
 
$

124
 
$

(511

)

$

297
 

Other comprehensive (loss) income

   
(27

)
 
19
   
(15

)
 
(4

)
 
(27

)

Comprehensive income attributable to noncontrolling interests

        (1 )   (2 )   (1 )   (4 )
                       

Comprehensive income attributable to Huntsman International LLC

  $ 266   $ 409   $ 107   $ (516 ) $ 266  
                       


HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED)
SIX MONTHS ENDED JUNE 30, 2011
(Dollars in Millions)

 
  Parent
Company
  Guarantors   Nonguarantors   Eliminations   Consolidated
Huntsman
International LLC
 

Revenues:

                               

Trade sales, services and fees, net

  $ 435   $ 1,664   $ 3,426   $ (3 ) $ 5,522  

Related party sales

    192     283     569     (953 )   91  
                       

Total revenues

    627     1,947     3,995     (956 )   5,613  

Cost of goods sold

    541     1,582     3,456     (936 )   4,643  
                       

Gross profit

    86     365     539     (20 )   970  

Selling, general and administrative

    84     57     331         472  

Research and development

    24     16     41         81  

Other operating expense (income)

    33     (38 )   13         8  

Restructuring, impairment and plant closing costs

            16         16  
                       

Operating (loss) income

    (55 )   330     138     (20 )   393  

Interest (expense) income, net

    (110 )   21     (42 )       (131 )

Equity in income of investment in affiliates and subsidiaries

    281     61     5     (343 )   4  

Loss on early extinguishment of debt

    (3 )               (3 )

Other (expense) income

    (16 )           17     1  
                       

Income from continuing operations before income taxes

    97     412     101     (346 )   264  

Income tax benefit (expense)

    76     (120 )   (12 )       (56 )
                       

Income from continuing operations

    173     292     89     (346 )   208  

Income (loss) from discontinued operations, net of tax

    7         (22 )       (15 )
                       

Income before extraordinary gain

    180     292     67     (346 )   193  

Extraordinary gain on the acquisition of a business, net of tax of nil

            2         2  
                       

Net income

    180     292     69     (346 )   195  

Net income attributable to noncontrolling interests

        (1 )   (8 )   (6 )   (15 )
                       

Net income attributable to Huntsman International LLC

  $ 180   $ 291   $ 61   $ (352 ) $ 180  
                       

Net income

 
$

180
 
$

292
 
$

69
 
$

(346

)

$

195
 

Other comprehensive income

   
158
   
308
   
107
   
(414

)
 
159
 

Comprehensive income attributable to noncontrolling interests

        (1 )   (9 )   (6 )   (16 )
                       

Comprehensive income attributable to Huntsman International LLC

  $ 338   $ 599   $ 167   $ (766 ) $ 338  
                       

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED)
SIX MONTHS ENDED JUNE 30, 2012
(Dollars in Millions)

 
  Parent
Company
  Guarantors   Nonguarantors   Eliminations   Consolidated
Huntsman
International LLC
 

Net cash provided by operating activities

  $ 161   $ 81   $ 118   $ (3 ) $ 357  
                       

Investing activities:

                               

Capital expenditures

    (10 )   (33 )   (120 )       (163 )

Cash paid for acquisition of a business

            (2 )       (2 )

Increase in receivable from affiliate

    (29 )               (29 )

Investment in affiliate

    (38 )   (10 )   (1 )   49      

Investment in unconsolidated affiliate

        (60 )           (60 )

Cash received from unconsolidated affiliates

        40             40  

Increase in restricted cash

            (2 )       (2 )

Other, net

            2         2  
                       

Net cash used in investing activities

    (77 )   (63 )   (123 )   49     (214 )
                       

Financing activities:

                               

Net repayments under revolving loan facilities

            (15 )       (15 )

Net borrowings on overdraft facilities

            4         4  

Repayments of short-term debt

            (21 )       (21 )

Repayments of long-term debt

    (100 )       (52 )       (152 )

Proceeds from issuance of long-term debt

            1         1  

Proceeds from notes payable to affiliate

    84                 84  

Repayments of notes payable

    (15 )       (9 )       (24 )

Borrowings on notes payable

            1         1  

Debt issuance costs paid

    (4 )               (4 )

Call premiums related to early extinguishment of debt

    (2 )               (2 )

Contribution from parent

        10     61     (71 )    

Distribution to parent

        (23 )       23      

Dividends paid to parent

    (48 )   (1 )   (1 )   2     (48 )

Excess tax benefit related to stock-based compensation

    4                 4  
                       

Net cash used in financing activities

    (81 )   (14 )   (31 )   (46 )   (172 )

Effect of exchange rate changes on cash

            (1 )       (1 )
                       

Increase (decrease) in cash and cash equivalents

    3     4     (37 )       (30 )

Cash and cash equivalents at beginning of period

    4         227         231  
                       

Cash and cash equivalents at end of period

  $ 7   $ 4   $ 190   $   $ 201  
                       


HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED)
SIX MONTHS ENDED JUNE 30, 2011
(Dollars in Millions)

 
  Parent
Company
  Guarantors   Nonguarantors   Eliminations   Consolidated
Huntsman
International LLC
 

Net cash provided by (used in) operating activities

  $ 86   $ 45   $ (128 ) $ (6 ) $ (3 )
                       

Investing activities:

                               

Capital expenditures

    (7 )   (29 )   (88 )       (124 )

Proceeds from settlements treated as reimbursement of capital expenditures

            3         3  

Cash assumed in connection with the initial consolidation of a variable interest entity

            28         28  

Cash paid for acquisition of a business

            (23 )       (23 )

Proceeds from sale of business/assets

            3         3  

Decrease in receivable from affiliate

    8                 8  

Investment in affiliate

    (106 )   (1 )       107      

Investment in unconsolidated affiliate

        (10 )           (10 )

Cash received from unconsolidated affiliates

        13             13  

Other, net

            (6 )   5     (1 )
                       

Net cash used in investing activities

    (105 )   (27 )   (83 )   112     (103 )

Financing activities:

                               

Net borrowings under revolving loan facilities

            4         4  

Net borrowings on overdraft facilities

            11         11  

Repayments of short-term debt

            (100 )       (100 )

Borrowings on short-term debt

            76         76  

Repayments of long-term debt

    (100 )       (70 )       (170 )

Proceeds from issuance of long-term debt

            71         71  

Repayments of notes payable

    (14 )       (1 )       (15 )

Borrowings on notes payable

            1         1  

Debt issuance costs paid

    (7 )               (7 )

Call premiums related to early extinguishment of debt

    (3 )               (3 )

Contribution from parent

        (23 )   130     (107 )    

Dividends paid to parent

    (32 )   (1 )       1     (32 )

Excess tax benefit related to stock-based compensation

    10                 10  
                       

Net cash (used in) provided by financing activities

    (146 )   (24 )   122     (106 )   (154 )

Effect of exchange rate changes on cash

            5         5  
                       

Decrease in cash and cash equivalents

    (165 )   (6 )   (84 )       (255 )

Cash and cash equivalents at beginning of period

    220     9     332         561  
                       

Cash and cash equivalents at end of period

  $ 55   $ 3   $ 248   $   $ 306