| 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 |
|
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. We use adjusted 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 adjusted EBITDA of operating segments excludes items that principally apply to our Company as a whole. The following schedule includes revenues and adjusted EBITDA for each of our reportable operating segments (dollars in millions). We have revised our prior years’ presentation below to reconcile total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes, in addition to net income, and removed “corporate and other costs, net” from the total reportable segments’ adjusted EBITDA and included such amounts in the reconciliation to income from continuing operations before income taxes. Additionally, we have revised our prior years’ presentation of total reportable segments’ revenues, in which we removed intersegment eliminations from the total reportable segment’s revenues.
| |
|
Three months |
|
| |
|
ended |
|
| |
|
March 31, |
|
| |
|
2022 |
|
|
2021 |
|
| Revenues: |
|
|
|
|
|
|
|
|
| Polyurethanes |
|
$ |
1,386 |
|
|
$ |
1,068 |
|
| Performance Products |
|
|
480 |
|
|
|
305 |
|
| Advanced Materials |
|
|
335 |
|
|
|
278 |
|
| Textile Effects |
|
|
197 |
|
|
|
193 |
|
| Total reportable segment’s revenue |
|
|
2,398 |
|
|
|
1,844 |
|
| Intersegment eliminations |
|
|
(9 |
) |
|
|
(7 |
) |
| Total |
|
$ |
2,389 |
|
|
$ |
1,837 |
|
| |
|
|
|
|
|
|
|
|
| Huntsman Corporation: |
|
|
|
|
|
|
|
|
| Segment adjusted EBITDA(1): |
|
|
|
|
|
|
|
|
| Polyurethanes |
|
$ |
224 |
|
|
$ |
207 |
|
| Performance Products |
|
|
146 |
|
|
|
63 |
|
| Advanced Materials |
|
|
67 |
|
|
|
44 |
|
| Textile Effects |
|
|
28 |
|
|
|
25 |
|
| Total reportable segments’ adjusted EBITDA |
|
|
465 |
|
|
|
339 |
|
| |
|
|
|
|
|
|
|
|
| Reconciliation of total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes: |
|
|
|
|
|
|
|
|
| Interest expense, net—continuing operations |
|
|
(14 |
) |
|
|
(19 |
) |
| Depreciation and amortization—continuing operations |
|
|
(71 |
) |
|
|
(74 |
) |
| Corporate and other costs, net(2) |
|
|
(50 |
) |
|
|
(50 |
) |
| Net income attributable to noncontrolling interests |
|
|
17 |
|
|
|
17 |
|
| Other adjustments: |
|
|
|
|
|
|
|
|
| Business acquisition and integration expenses and purchase accounting inventory adjustments |
|
|
(6 |
) |
|
|
(9 |
) |
| Fair value adjustments to Venator investment |
|
|
(2 |
) |
|
|
(19 |
) |
| Certain legal and other settlements and related expenses |
|
|
(12 |
) |
|
|
(2 |
) |
| Costs associated with the Albemarle Settlement, net |
|
|
(1 |
) |
|
|
— |
|
| Loss on sale of business/assets |
|
|
(4 |
) |
|
|
— |
|
| Income from transition services arrangements |
|
|
1 |
|
|
|
1 |
|
| Certain nonrecurring information technology project implementation costs |
|
|
(2 |
) |
|
|
(1 |
) |
| Amortization of pension and postretirement actuarial losses |
|
|
(14 |
) |
|
|
(22 |
) |
| Plant incident remediation costs |
|
|
— |
|
|
|
(4 |
) |
| Restructuring, impairment and plant closing and transition costs(3) |
|
|
(3 |
) |
|
|
(24 |
) |
| Income from continuing operations before income taxes |
|
|
304 |
|
|
|
133 |
|
| |
|
|
|
|
|
|
|
|
| Income tax expense—continuing operations |
|
|
(65 |
) |
|
|
(34 |
) |
| Income from discontinued operations |
|
|
1 |
|
|
|
1 |
|
| Net income |
|
$ |
240 |
|
|
$ |
100 |
|
| |
|
Three months |
|
| |
|
ended |
|
| |
|
March 31, |
|
| |
|
2022 |
|
|
2021 |
|
| Huntsman International: |
|
|
|
|
|
|
|
|
| Segment adjusted EBITDA(1): |
|
|
|
|
|
|
|
|
| Polyurethanes |
|
$ |
224 |
|
|
$ |
207 |
|
| Performance Products |
|
|
146 |
|
|
|
63 |
|
| Advanced Materials |
|
|
67 |
|
|
|
44 |
|
| Textile Effects |
|
|
28 |
|
|
|
25 |
|
| Total reportable segments’ adjusted EBITDA |
|
|
465 |
|
|
|
339 |
|
| |
|
|
|
|
|
|
|
|
| Reconciliation of total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes: |
|
|
|
|
|
|
|
|
| Interest expense, net—continuing operations |
|
|
(14 |
) |
|
|
(19 |
) |
| Depreciation and amortization—continuing operations |
|
|
(71 |
) |
|
|
(73 |
) |
| Corporate and other costs, net(2) |
|
|
(47 |
) |
|
|
(47 |
) |
| Net income attributable to noncontrolling interests |
|
|
17 |
|
|
|
17 |
|
| Other adjustments: |
|
|
|
|
|
|
|
|
| Business acquisition and integration expenses and purchase accounting inventory adjustments |
|
|
(6 |
) |
|
|
(9 |
) |
| Fair value adjustments to Venator investment |
|
|
(2 |
) |
|
|
(19 |
) |
| Certain legal and other settlements and related expenses |
|
|
(12 |
) |
|
|
(2 |
) |
| Costs associated with the Albemarle Settlement, net |
|
|
(1 |
) |
|
|
— |
|
| Loss on sale of business/assets |
|
|
(4 |
) |
|
|
— |
|
| Income from transition services arrangements |
|
|
1 |
|
|
|
1 |
|
| Certain nonrecurring information technology project implementation costs |
|
|
(2 |
) |
|
|
(1 |
) |
| Amortization of pension and postretirement actuarial losses |
|
|
(14 |
) |
|
|
(23 |
) |
| Plant incident remediation costs |
|
|
— |
|
|
|
(4 |
) |
| Restructuring, impairment and plant closing and transition costs(3) |
|
|
(3 |
) |
|
|
(24 |
) |
| Income from continuing operations before income taxes |
|
|
307 |
|
|
|
136 |
|
| |
|
|
|
|
|
|
|
|
| Income tax expense—continuing operations |
|
|
(65 |
) |
|
|
(35 |
) |
| Income from discontinued operations |
|
|
1 |
|
|
|
1 |
|
| Net income |
|
$ |
243 |
|
|
$ |
102 |
|
| (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) fair value adjustments to Venator investment; (c) certain legal and other settlements and related income (expenses); (d) costs associated with the Albemarle Settlement, net; (e) loss on sale of business/assets; (f) income from transition services arrangements related to the sale of our Chemical Intermediates Businesses to Indorama; (g) certain nonrecurring information technology project implementation costs; (h) amortization of pension and postretirement actuarial losses; (i) plant incident remediation costs; and (j) restructuring, impairment, plant closing and transition costs. |
| (2) |
Corporate and other costs, (net) 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 costs associated with transition activities relating primarily to our Corporate program to optimize our global approach to leverage shared services capabilities. |
|