Note 1 - General |
12 Months Ended | |||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||
| Notes to Financial Statements | ||||||||||||||||||||||
| Nature of Operations [Text Block] |
Definitions
For convenience in this report, the terms “Company,” “our” or “we” may be used to refer to Huntsman Corporation and, unless the context otherwise requires, its subsidiaries and predecessors. In this report, “Huntsman International” refers to Huntsman International LLC (our wholly-owned subsidiary) and, unless the context otherwise requires, its subsidiaries; “AAC” refers to Arabian Amines Company, our consolidated manufacturing joint venture with the Zamil Group; “HPS” refers to Huntsman Polyurethanes Shanghai Ltd. (our consolidated splitting joint venture with Shanghai Chlor-Alkali Chemical Company, Ltd); and “SLIC” refers to Shanghai Liengheng Isocyanate Company (our unconsolidated manufacturing joint venture with BASF and Chinese chemical companies).
In this report, we may use, without definition, the common names of competitors or other industry participants. We may also use the common names or abbreviations for certain chemicals or products.
Description of Business
We are a global manufacturer of differentiated organic chemical products. We operate in segments: Polyurethanes, Performance Products, Advanced Materials and Textile Effects. Our products comprise a broad range of chemicals and formulations, which we market globally to a diversified group of consumer and industrial customers. Our products are used in a wide range of applications, including those in the adhesives, aerospace, automotive, construction products, durable and non-durable consumer products, electronics, insulation, medical, packaging, coatings and construction, power generation, refining, synthetic fiber, textile chemicals and dye industries. We are a leading global producer in many of our key product lines, including MDI, amines, maleic anhydride, epoxy-based polymer formulations, textile chemicals and dyes.
Company
Our Company, a Delaware corporation, was formed in 2004 to hold the Huntsman businesses, which were founded by Jon M. Huntsman. Mr. Huntsman founded the predecessor to our Company in 1970 as a small polystyrene plastics packaging company. Since then, we have grown through a series of acquisitions and now own a global portfolio of businesses.
We operate all of our businesses through Huntsman International, our wholly-owned subsidiary. Huntsman International is a Delaware limited liability company and was formed in 1999.
Recent Developments
Dividend Increase
On February 14, 2022, our Board of Directors declared a $0.2125 per share cash dividend on our common stock. This represents a 13% increase from the previous dividend.
Strategic Review of Textile Effects
In December 2021, we initiated a strategic review of our Textile Effects segment, which is headquartered in Singapore, including a possible sale of the segment. We have not set a timetable or a deadline for the conclusion of this evaluation of strategic alternatives.
Albemarle Settlement
On October 28, 2021, we won an arbitration award in excess of $600 million against Albemarle for fraud and breach of contract. On November 4, 2021, Albemarle agreed to waive any appeal and pay $665 million, of which we received $332.5 million on December 2, 2021 and expect to receive a final payment of $332.5 million by early May 2022. We agreed to terminate all proceedings relating to the dispute after receipt of the final payment. We expect to receive, on a pretax basis, a total of approximately $465 million after related legal fees, which was recognized as income associated with the Albemarle Settlement, net in our consolidated statements of operations.
Share Repurchase Program
On October 26, 2021, our Board of Directors approved a new share repurchase program of $1 billion. In conjunction with the inception of this new share repurchase program, we retired our prior share repurchase program. See “Note 22. Huntsman Corporation Stockholders’ Equity—Share Repurchase Program.”
Other Significant Developments During 2021
Other significant developments that occurred during 2021 were as follows:
Huntsman Corporation and Huntsman International Financial Statements
Except where otherwise indicated, these notes relate to the consolidated financial statements for both our Company and Huntsman International. The differences between our consolidated financial statements and Huntsman International’s consolidated financial statements relate primarily to the following:
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