| Segment Reporting Disclosure [Text Block] |
20. OPERATING SEGMENT INFORMATION
We derive our revenues, earnings and cash flows from the manufacture and sale of a wide variety of differentiated and commodity chemical products. We have four operating segments, which are also our reportable segments: Polyurethanes, Performance Products, Advanced Materials and Textile Effects. 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, polyols, TPU and other polyurethane-related products |
| Performance Products |
|
Specialty amines, ethyleneamines, maleic anhydride and technology licenses |
| Advanced Materials |
|
Basic liquid and solid epoxy resins; specialty resin compounds; cross-linking, matting, and curing and toughening agents; epoxy, acrylic and polyurethane-based formulations; specialty nitrile latex, alkyd resins and carbon nano materials |
| Textile Effects |
|
Textile chemicals and dyes |
Sales between segments are generally recognized at external market prices and are eliminated in consolidation. Adjusted EBITDA is presented as a measure of the financial performance of our global business units and for reporting the results of our operating segments. The adjusted EBITDA of our reportable operating segments excludes items that principally apply to our Company as a whole. The revenues and adjusted EBITDA from continuing operations for each of our reportable operating segments are as follows (dollars in millions):
| |
|
Three months |
|
|
Nine months |
|
| |
|
ended |
|
|
ended |
|
| |
|
September 30, |
|
|
September 30, |
|
| |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Polyurethanes |
|
$ |
1,403 |
|
|
$ |
936 |
|
|
$ |
3,626 |
|
|
$ |
2,554 |
|
| Performance Products |
|
|
399 |
|
|
|
238 |
|
|
|
1,075 |
|
|
|
758 |
|
| Advanced Materials |
|
|
304 |
|
|
|
199 |
|
|
|
881 |
|
|
|
632 |
|
| Textile Effects |
|
|
188 |
|
|
|
142 |
|
|
|
588 |
|
|
|
424 |
|
| Corporate and eliminations |
|
|
(9 |
) |
|
|
(5 |
) |
|
|
(24 |
) |
|
|
(18 |
) |
| Total |
|
$ |
2,285 |
|
|
$ |
1,510 |
|
|
$ |
6,146 |
|
|
$ |
4,350 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Huntsman Corporation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment adjusted EBITDA(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Polyurethanes |
|
$ |
246 |
|
|
$ |
156 |
|
|
$ |
661 |
|
|
$ |
271 |
|
| Performance Products |
|
|
103 |
|
|
|
36 |
|
|
|
254 |
|
|
|
123 |
|
| Advanced Materials |
|
|
48 |
|
|
|
25 |
|
|
|
150 |
|
|
|
103 |
|
| Textile Effects |
|
|
22 |
|
|
|
8 |
|
|
|
75 |
|
|
|
24 |
|
| Corporate and other(2) |
|
|
(48 |
) |
|
|
(37 |
) |
|
|
(146 |
) |
|
|
(114 |
) |
| Total |
|
|
371 |
|
|
|
188 |
|
|
|
994 |
|
|
|
407 |
|
| Reconciliation of adjusted EBITDA to net income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense, net—continuing operations |
|
|
(15 |
) |
|
|
(24 |
) |
|
|
(52 |
) |
|
|
(63 |
) |
| Income tax expense—continuing operations |
|
|
(38 |
) |
|
|
(15 |
) |
|
|
(114 |
) |
|
|
(9 |
) |
| Income tax expense—discontinued operations |
|
|
(5 |
) |
|
|
— |
|
|
|
(5 |
) |
|
|
(239 |
) |
| Depreciation and amortization—continuing operations |
|
|
(72 |
) |
|
|
(70 |
) |
|
|
(219 |
) |
|
|
(206 |
) |
| Net income attributable to noncontrolling interests |
|
|
16 |
|
|
|
9 |
|
|
|
49 |
|
|
|
15 |
|
| Other adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Business acquisition and integration expenses and purchase accounting inventory adjustments |
|
|
(5 |
) |
|
|
(9 |
) |
|
|
(19 |
) |
|
|
(30 |
) |
| EBITDA from discontinued operations(3) |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
1,021 |
|
| Fair value adjustments to Venator investment |
|
|
(3 |
) |
|
|
6 |
|
|
|
(28 |
) |
|
|
(100 |
) |
| Loss on early extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
(27 |
) |
|
|
— |
|
| Certain legal and other settlements and related income (expenses) |
|
|
— |
|
|
|
4 |
|
|
|
(10 |
) |
|
|
(2 |
) |
| Gain on sale of businesses/assets |
|
|
— |
|
|
|
— |
|
|
|
30 |
|
|
|
1 |
|
| Income from transition services arrangements |
|
|
2 |
|
|
|
1 |
|
|
|
6 |
|
|
|
6 |
|
| Certain nonrecurring information technology project implementation costs |
|
|
(2 |
) |
|
|
(1 |
) |
|
|
(6 |
) |
|
|
(3 |
) |
| Amortization of pension and postretirement actuarial losses |
|
|
(22 |
) |
|
|
(20 |
) |
|
|
(65 |
) |
|
|
(57 |
) |
| Plant incident remediation costs |
|
|
(2 |
) |
|
|
— |
|
|
|
(3 |
) |
|
|
(1 |
) |
| Restructuring, impairment and plant closing and transition costs |
|
|
— |
|
|
|
(12 |
) |
|
|
(36 |
) |
|
|
(34 |
) |
| Net income |
|
$ |
225 |
|
|
$ |
57 |
|
|
$ |
497 |
|
|
$ |
706 |
|
| |
|
Three months |
|
|
Nine months |
|
| |
|
ended |
|
|
ended |
|
| |
|
September 30, |
|
|
September 30, |
|
| |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
| Huntsman International: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment adjusted EBITDA(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Polyurethanes |
|
$ |
246 |
|
|
$ |
156 |
|
|
$ |
661 |
|
|
$ |
271 |
|
| Performance Products |
|
|
103 |
|
|
|
36 |
|
|
|
254 |
|
|
|
123 |
|
| Advanced Materials |
|
|
48 |
|
|
|
25 |
|
|
|
150 |
|
|
|
103 |
|
| Textile Effects |
|
|
22 |
|
|
|
8 |
|
|
|
75 |
|
|
|
24 |
|
| Corporate and other(2) |
|
|
(47 |
) |
|
|
(36 |
) |
|
|
(140 |
) |
|
|
(110 |
) |
| Total |
|
|
372 |
|
|
|
189 |
|
|
|
1,000 |
|
|
|
411 |
|
| Reconciliation of adjusted EBITDA to net income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense, net—continuing operations |
|
|
(15 |
) |
|
|
(24 |
) |
|
|
(52 |
) |
|
|
(65 |
) |
| Income tax expense—continuing operations |
|
|
(39 |
) |
|
|
(15 |
) |
|
|
(115 |
) |
|
|
(9 |
) |
| Income tax expense—discontinued operations |
|
|
(5 |
) |
|
|
— |
|
|
|
(5 |
) |
|
|
(239 |
) |
| Depreciation and amortization—continuing operations |
|
|
(72 |
) |
|
|
(70 |
) |
|
|
(219 |
) |
|
|
(206 |
) |
| Net income attributable to noncontrolling interests |
|
|
16 |
|
|
|
9 |
|
|
|
49 |
|
|
|
15 |
|
| Other adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Business acquisition and integration expenses and purchase accounting inventory adjustments |
|
|
(5 |
) |
|
|
(9 |
) |
|
|
(19 |
) |
|
|
(30 |
) |
| EBITDA from discontinued operations(3) |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
1,021 |
|
| Fair value adjustments to Venator investment |
|
|
(3 |
) |
|
|
6 |
|
|
|
(28 |
) |
|
|
(100 |
) |
| Loss on early extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
(27 |
) |
|
|
— |
|
| Certain legal and other settlements and related income (expenses) |
|
|
— |
|
|
|
4 |
|
|
|
(10 |
) |
|
|
(2 |
) |
| Gain on sale of businesses/assets |
|
|
— |
|
|
|
— |
|
|
|
30 |
|
|
|
1 |
|
| Income from transition services arrangements |
|
|
2 |
|
|
|
1 |
|
|
|
6 |
|
|
|
6 |
|
| Certain nonrecurring information technology project implementation costs |
|
|
(2 |
) |
|
|
(1 |
) |
|
|
(6 |
) |
|
|
(3 |
) |
| Amortization of pension and postretirement actuarial losses |
|
|
(22 |
) |
|
|
(20 |
) |
|
|
(67 |
) |
|
|
(59 |
) |
| Plant incident remediation costs |
|
|
(2 |
) |
|
|
— |
|
|
|
(3 |
) |
|
|
(1 |
) |
| Restructuring, impairment and plant closing and transition costs |
|
|
— |
|
|
|
(12 |
) |
|
|
(36 |
) |
|
|
(34 |
) |
| Net income |
|
$ |
225 |
|
|
$ |
58 |
|
|
$ |
500 |
|
|
$ |
706 |
|
| (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 the chief operating decision maker 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 and purchase accounting inventory adjustments; (b) EBITDA from discontinued operations; (c) fair value adjustments to Venator investment; (d) loss on early extinguishment of debt; (e) certain legal and other settlements and related income (expenses); (f) gain on sale of businesses/assets; (g) income from transition services arrangements related to the sale of our Chemical Intermediates Businesses to Indorama; (h) certain nonrecurring information technology project implementation costs; (i) amortization of pension and postretirement actuarial losses; (j) plant incident remediation costs; 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, loss on early extinguishment of debt, unallocated restructuring, impairment and plant closing costs, nonoperating income and expense and gains and losses on the disposition of corporate assets. |
| (3) |
Includes the gain on the sale of our Chemical Intermediates Businesses in 2020.
|
|