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3. BUSINESS COMBINATIONS
LAFFANS ACQUISITION
On April 2, 2011, we completed the acquisition of the chemical business of Laffans Petrochemicals Limited ("Laffans"), an amines and surfactants manufacturer located in Ankleshwar, India (the "Laffans Acquisition"). The acquisition cost of approximately $23 million remains subject to finalization of closing working capital. The acquired business has been integrated into our Performance Products segment. Transaction costs charged to expense related to this acquisition were not significant.
We have accounted for the Laffans Acquisition using the acquisition method. As such, we analyzed the fair value of tangible and intangible assets acquired and liabilities assumed. The preliminary allocation of acquisition cost to the assets acquired and liabilities assumed is summarized as follows (dollars in millions):
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Acquisition cost
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$ |
23 |
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| |
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Fair value of assets acquired and liabilities assumed:
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Accounts receivable
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$ |
10 |
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| |
Inventories
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2 |
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| |
Other current assets
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2 |
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| |
Property, plant and equipment
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14 |
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Accounts payable
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(3 |
) |
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Accrued liabilities
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(1 |
) |
| |
Other noncurrent liabilities
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(1 |
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| |
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Total fair value of net assets acquired
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$ |
23 |
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| |
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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
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Pro Forma |
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Three Months Ended
June 30, |
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Six Months Ended
June 30, |
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2010 |
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2011 |
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2010 |
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Revenues
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$ |
2,355 |
|
$ |
5,627 |
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$ |
4,461 |
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Net income (loss) attributable to Huntsman Corporation
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|
|
114 |
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|
177 |
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(58 |
) |
Huntsman International
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Pro Forma |
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Three Months Ended
June 30, |
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Six Months Ended
June 30, |
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2010 |
|
2011 |
|
2010 |
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Revenues
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$ |
2,355 |
|
$ |
5,627 |
|
$ |
4,461 |
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Net income attributable to Huntsman International
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|
|
117 |
|
|
181 |
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|
91 |
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