|
3. BUSINESS COMBINATIONS
LAFFANS ACQUISITION
On April 2, 2011, we completed the acquisition of Laffans, an amines and surfactants manufacturer located in Ankleshwar, India (the "Laffans Acquisition") at a cost of approximately $23 million. The acquired business has been integrated into our Performance Products segment. Transaction costs charged to expense related to this acquisition were not significant. We have made residual claims against the seller for a portion of the purchase price and as a result the acquisition cost may change.
We have accounted for the Laffans Acquisition using the acquisition method. As such, we analyzed the fair value of tangible and intangible assets acquired and liabilities assumed. The preliminary allocation of acquisition cost to the assets acquired and liabilities assumed is summarized as follows (dollars in millions):
|
|
|
|
|
|
|
Acquisition cost
|
|
$ |
23 |
|
| |
|
|
|
|
Fair value of assets acquired and liabilities assumed:
|
|
|
|
|
| |
Accounts receivable
|
|
$ |
10 |
|
| |
Inventories
|
|
|
2 |
|
| |
Other current assets
|
|
|
2 |
|
| |
Property, plant and equipment
|
|
|
14 |
|
| |
Accounts payable
|
|
|
(3 |
) |
| |
Accrued liabilities
|
|
|
(1 |
) |
| |
Other noncurrent liabilities
|
|
|
(1 |
) |
| |
|
|
|
|
Total fair value of net assets acquired
|
|
$ |
23 |
|
| |
|
|
|
The acquisition cost allocation is preliminary pending final determination of the fair value of assets acquired and liabilities assumed, including final valuation of property, plant and equipment, intangible assets and the determination of related deferred taxes. For purposes of this preliminary allocation of fair value, we have assigned any excess of the acquisition cost of historical carrying values to property, plant and equipment and no amounts have been allocated to goodwill. It is possible that changes to this allocation could occur.
If this acquisition were to have occurred on January 1, 2010, the following estimated pro forma revenues and net income (loss) attributable to Huntsman Corporation and Huntsman International would have been reported (dollars in millions):
Huntsman Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma |
|
|
|
|
|
Nine Months
Ended
September 30, |
|
|
|
Three Months
Ended
September 30,
2010 |
|
|
|
2011 |
|
2010 |
|
|
Revenues
|
|
$ |
2,414 |
|
$ |
8,603 |
|
$ |
6,875 |
|
|
Net income (loss) attributable to Huntsman Corporation
|
|
|
55 |
|
|
143 |
|
|
(3 |
) |
Huntsman International
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma |
|
|
|
|
|
Nine Months
Ended
September 30, |
|
|
|
Three Months
Ended
September 30,
2010 |
|
|
|
2011 |
|
2010 |
|
|
Revenues
|
|
$ |
2,414 |
|
$ |
8,603 |
|
$ |
6,875 |
|
|
Net income attributable to Huntsman International
|
|
|
58 |
|
|
150 |
|
|
149 |
|
|