Exhibit 99.2

 

Summary of Unaudited Pro Forma Financial Information

 

The following unaudited financial information reflects the pro forma condensed consolidated balance sheets as of September 30, 2019 and the pro forma consolidated statements of operations for the years ended December 31, 2018, 2017 and 2016 for each of Huntsman Corporation and Huntsman International LLC (collectively, the “Company”), giving effect to the sale of its chemical intermediates businesses, which included PO/MTBE, and its surfactants businesses (collectively, the “Chemical Intermediates Businesses”). The condensed consolidated statements of operations for the nine months ended September 30, 2019, as included in the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2019, already reflect the results of operations of the Chemical Intermediates Businesses as discontinued operations. Accordingly, no pro forma condensed consolidated statements of operations for the nine months ended September 30, 2019 are included herein.

 

The unaudited pro forma consolidated statements of operations for the years ended December 31, 2018, 2017 and 2016 give effect to the sale as if the sale transaction occurred at the beginning of the periods presented. The unaudited pro forma condensed consolidated balance sheets as of September 30, 2019 assume the sale occurred on September 30, 2019.

 

The pro forma information is not necessarily indicative of the financial position or results of operations of future periods or indicative of results that would have actually occurred had the transaction been completed as of the date thereof or as of the beginning of the periods presented therein. The pro forma adjustments, as described in the accompanying notes to the pro forma condensed consolidated balance sheets and consolidated statements of operations, are based upon available information and certain assumptions the Company believes are reasonable. The pro forma financial information should be read in conjunction with the Company’s unaudited condensed consolidated financial statements included in its Form 10-Q for the quarterly period ended September 30, 2019 and the Company’s consolidated financial statements included in its Form 10-K for the year ended December 31, 2018.

 

 

 

 

HUNTSMAN CORPORATION AND SUBSIDIARIES

PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)

AS OF SEPTEMBER 30, 2019

(In millions)

 

    Huntsman   Pro Forma      
    Corporation   Adjustments   Pro Forma  
ASSETS              
Current assets:              
Cash and cash equivalents   $ 418   $ 1,895 (2) $ 2,313  
Accounts and notes receivable, net   1,078       1,078  
Accounts receivable from affiliates   12       12  
Inventories   961       961  
Prepaid expenses   53       53  
Other current assets   99       99  
Current assets held for sale   1,108   (1,108 )(1) -  
Total current assets   3,729   787   4,516  
Property plant and equipment, net   2,324       2,324  
Investment in unconsolidated affiliates   454       454  
Intangible assets, net   202       202  
Goodwill   274       274  
Deferred income taxes   309       309  
Notes receivable from affiliate   34       34  
Operating lease right-of-use assets   356       356  
Other noncurrent assets   433       433  
Total assets   $ 8,115   $ 787   $ 8,902  
               
LIABILITIES AND EQUITY              
Current liabilities:              
Accounts payable   $ 715       $ 715  
Accounts payable to affiliates   29       29  
Accrued liabilities   406   $ 400 (4) 806  
Current portion of debt   132       132  
Current operating lease liabilities   37       37  
Current liabilities held for sale   586   (586 )(1) -  
Total current liabilities   1,905   (186 ) 1,719  
Long-term debt   2,204       2,204  
Deferred income taxes   198   100 (4) 298  
Noncurrent operating lease liabilities   349       349  
Other noncurrent liabilities   821       821  
Total liabilities   5,477   (86 ) 5,391  
Equity              
Huntsman Corporation stockholders’ equity:              
Common stock   3       3  
Additional paid-in capital   4,009       4,009  
Treasury stock   (623 )     (623 )
Unearned stock-based compensation   (21 )     (21 )
Retained earnings   424   825 (3) 1,249  
Accumulated other comprehensive loss   (1,310 ) 48 (1) (1,262 )
Total Huntsman Corporation stockholders’ equity   2,482   873   3,355  
Noncontrolling interests in subsidiaries   156       156  
Total equity   2,638   873   3,511  
Total liabilities and equity   $ 8,115   $ 787   $ 8,902  

 

 

(1)   Reflects the disposition of the Chemical Intermediates Businesses as a result of the sale transaction.
     
(2)   Reflects receipt of the sale consideration, less transaction costs.
     
(3)   Reflects the preliminary gain on the sale transaction, net of taxes.
     
(4)   Reflects the estimated current and deferred income taxes associated with the gain recognized upon closing of the sale transaction.

 

 

 

 

HUNTSMAN CORPORATION AND SUBSIDIARIES

PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)

YEAR ENDED DECEMBER 31, 2018

(In Millions, Except Per Share Amounts)

 

    Huntsman   Pro Forma      
    Corporation   Adjustments   Pro Forma  
Revenues:              
Trade sales, services and fees, net   $ 9,220   $ (1,769 )(1) $ 7,451  
Related party sales   159   (6 )(1) 153  
Total revenues   9,379   (1,775 ) 7,604  
               
Cost of goods sold   7,354   (1,514 )(1) 5,840  
               
Gross profit   2,025   (261 ) 1,764  
               
Operating expenses:              
Selling, general and administrative   830   (41 )(1) 789  
Research and development   152   (7 )(1) 145  
Restructuring, impairment and plant closing credits   (5 ) (2 )(1) (7 )
Merger costs   2       2  
Other operating expense, net   8       8  
Total operating expenses   987   (50 ) 937  
Operating income   1,038   (211 ) 827  
               
Interest expense   (115 )     (115 )
Equity in income of investment in unconsolidated affiliates   55       55  
Fair value adjustments to Venator investment   (62 )     (62 )
Loss on early extinguishment of debt   (3 )     (3 )
Other income, net   29   3 (1) 32  
Income from continuing operations before income taxes   942   (208 ) 734  
               
Income tax expense   (97 ) 52 (2) (45 )
               
Income from continuing operations   $ 845   $ (156 ) $ 689  
               
Basic income per share:              
Income from continuing operations attributable to Huntsman Corporation common stockholders   $ 3.21   $ (0.66 )(3) $ 2.55  
Weighted average shares   238.1       238.1  
               
Diluted income per share:              
Income from continuing operations attributable to Huntsman Corporation common stockholders   $ 3.16   $ (0.65 )(3) $ 2.51  
Weighted average shares   241.6       241.6  

 

 

(1)   Reflects the removal of results of operations related to the disposition of the Chemical Intermediates Businesses as a result of the sale transaction.
     
(2)   Reflects the tax effect of the pro forma adjustments.
     
(3)   Reflects the basic and diluted per share impact of the sale transaction.

 

NOTE: The above pro forma statement of operations does not reflect the net gain on the sale transaction.

 

 

 

 

HUNTSMAN CORPORATION AND SUBSIDIARIES

PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)

YEAR ENDED DECEMBER 31, 2017

(In Millions, Except Per Share Amounts)

 

    Huntsman   Pro Forma      
    Corporation   Adjustments   Pro Forma  
Revenues:              
Trade sales, services and fees, net   $ 8,208   $ (1,524 )(1) $ 6,684  
Related party sales   150   11 (1) 161  
Total revenues   8,358   (1,513 ) 6,845  
               
Cost of goods sold   6,552   (1,358 )(1) 5,194  
               
Gross profit   1,806   (155 ) 1,651  
               
Operating expenses:              
Selling, general and administrative   798   (39 )(1) 759  
Research and development   138   (6 )(1) 132  
Restructuring, impairment and plant closing costs   20   (1 )(1) 19  
Merger costs   28       28  
Other operating income, net   (23 ) 7 (1) (16 )
Total operating expenses   961   (39 ) 922  
Operating income   845   (116 ) 729  
               
Interest expense   (165 )     (165 )
Equity in income of investment in unconsolidated affiliates   13       13  
Loss on early extinguishment of debt   (54 )     (54 )
Other income, net   8       8  
Income from continuing operations before income taxes   647   (116 ) 531  
               
Income tax expense   (64 ) 44 (2) (20 )
               
Income from continuing operations   $ 583   $ (72 ) $ 511  
               
Basic income per share:              
Income from continuing operations attributable to Huntsman Corporation common stockholders   $ 2.01   $ (0.30 )(3) $ 1.71  
Weighted average shares   238.4       238.4  
               
Diluted income per share:              
Income from continuing operations attributable to Huntsman Corporation common stockholders   $ 1.96   $ (0.30 )(3) $ 1.66  
Weighted average shares   243.9       243.9  

 

 

(1)   Reflects the removal of results of operations related to the disposition of the Chemical Intermediates Businesses as a result of the sale transaction.
     
(2)   Reflects the tax effect of the pro forma adjustments.
     
(3)   Reflects the basic and diluted per share impact of the sale transaction.

 

NOTE: The above pro forma statement of operations does not reflect the net gain on the sale transaction.

 

 

 

 

HUNTSMAN CORPORATION AND SUBSIDIARIES

PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)

YEAR ENDED DECEMBER 31, 2016

(In Millions, Except Per Share Amounts)

 

    Huntsman   Pro Forma      
    Corporation   Adjustments   Pro Forma  
Revenues:              
Trade sales, services and fees, net   $ 7,387   $ (1,369 )(1) $ 6,018  
Related party sales   131   (3 )(1) 128  
Total revenues   7,518   (1,372 ) 6,146  
               
Cost of goods sold   6,000   (1,175 )(1) 4,825  
               
Gross profit   1,518   (197 ) 1,321  
               
Operating expenses:              
Selling, general and administrative   772   (29 )(1) 743  
Research and development   137   (7 )(1) 130  
Restructuring, impairment and plant closing costs   47   (16 )(1) 31  
Other operating income, net   (101 ) 2 (1) (99 )
Total operating expenses   855   (50 ) 805  
Operating income   663   (147 ) 516  
               
Interest expense   (203 )     (203 )
Equity in income of investment in unconsolidated affiliates   5       5  
Loss on early extinguishment of debt   (3 )     (3 )
Other income, net   12       12  
Income from continuing operations before income taxes   474   (147 ) 327  
               
Income tax expense   (109 ) 53 (2) (56 )
               
Income from continuing operations   $ 365   $ (94 ) $ 271  
               
Basic income per share:              
Income from continuing operations attributable to Huntsman Corporation common stockholders   $ 1.41   $ (0.40 )(3) $ 1.01  
Weighted average shares   236.3       236.3  
               
Diluted income per share:              
Income from continuing operations attributable to Huntsman Corporation common stockholders   $ 1.39   $ (0.39 )(3) $ 1.00  
Weighted average shares   239.6       239.6  

 

 

(1)   Reflects the removal of results of operations related to the disposition of the Chemical Intermediates Businesses as a result of the sale transaction.
     
(2)   Reflects the tax effect of the pro forma adjustments.
     
(3)   Reflects the basic and diluted per share impact of the sale transaction.

 

NOTE: The above pro forma statement of operations does not reflect the net gain on the sale transaction.

 

 

 

 

 

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES

PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)

AS OF SEPTEMBER 30, 2019

(In millions)

 

    Huntsman          
    International   Pro Forma      
    LLC   Adjustments   Pro Forma  
ASSETS              
Current assets:              
Cash and cash equivalents   $ 417   $ 1,895 (2) $ 2,312  
Accounts and notes receivable, net   1,078       1,078  
Accounts receivable from affiliates   408       408  
Inventories   961       961  
Prepaid expenses   51       51  
Other current assets   102       102  
Current assets held for sale   1,108   (1,108 )(1) -  
Total current assets   4,125   787   4,912  
Property plant and equipment, net   2,324       2,324  
Investment in unconsolidated affiliates   454       454  
Intangible assets, net   202       202  
Goodwill   274       274  
Deferred income taxes   309       309  
Notes receivable from affiliate   34       34  
Operating lease right-of-use assets   356       356  
Other noncurrent assets   433       433  
Total assets   $ 8,511   $ 787   $ 9,298  
               
LIABILITIES AND EQUITY              
Current liabilities:              
Accounts payable   $ 714       $ 714  
Accounts payable to affiliates   112       112  
Accrued liabilities   403   $ 400 (4) 803  
Notes payable to affiliates   100       100  
Current portion of debt   132       132  
Current operating lease liabilities   37       37  
Current liabilities held for sale   586   (586 )(1) -  
Total current liabilities   2,084   (186 ) 1,898  
Long-term debt   2,204       2,204  
Notes payable to affiliates   291       291  
Deferred income taxes   195   100 (4) 295  
Noncurrent operating lease liabilities   349       349  
Other noncurrent liabilities   813       813  
Total liabilities   5,936   (86 ) 5,850  
Equity              
Huntsman International LLC members’ equity:              
Members’ equity   3,673       3,673  
Retained earnings   47   825 (3) 872  
Accumulated other comprehensive loss   (1,301 ) 48 (1) (1,253 )
Total Huntsman International LLC members’ equity   2,419   873   3,292  
Noncontrolling interests in subsidiaries   156       156  
Total equity   2,575   873   3,448  
Total liabilities and equity   $ 8,511   $ 787   $ 9,298  

 

 

(1)Reflects the disposition of the Chemical Intermediates Businesses as a result of the sale transaction.

 

(2)Reflects receipt of the sale consideration, less transaction costs.

 

(3)Reflects the preliminary gain on the sale transaction, net of taxes.

 

(4)Reflects the estimated current and deferred income taxes associated with the gain recognized upon closing of the sale transaction.

 

 

 

 

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES

PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)

YEAR ENDED DECEMBER 31, 2018

(In Millions)

 

    Huntsman          
    International   Pro Forma      
    LLC   Adjustments   Pro Forma  
Revenues:              
Trade sales, services and fees, net   $ 9,220   $ (1,769 )(1) $ 7,451  
Related party sales   159   (6 )(1) 153  
Total revenues   9,379   (1,775 ) 7,604  
               
Cost of goods sold   7,351   (1,514 )(1) 5,837  
               
Gross profit   2,028   (261 ) 1,767  
               
Operating expenses:              
Selling, general and administrative   825   (41 )(1) 784  
Research and development   152   (7 )(1) 145  
Restructuring, impairment and plant closing credits   (5 ) (2 )(1) (7 )
Merger costs   2       2  
Other operating expense, net   8       8  
Total operating expenses   982   (50 ) 932  
Operating income   1,046   (211 ) 835  
               
Interest expense   (136 )     (136 )
Equity in income of investment in unconsolidated affiliates   55       55  
Fair value adjustments to Venator investment   (62 )     (62 )
Loss on early extinguishment of debt   (3 )     (3 )
Other income, net   24   3 (1) 27  
Income from continuing operations before income taxes   924   (208 ) 716  
               
Income tax expense   (93 ) 52 (2) (41 )
               
Income from continuing operations   $ 831   $ (156 ) $ 675  

 

 

(1)Reflects the removal of results of operations related to the disposition of the Chemical Intermediates Businesses as a result of the sale transaction.

 

(2)Reflects the tax effect of the pro forma adjustments.

 

NOTE: The above pro forma statement of operations does not reflect the net gain on the sale transaction.

 

 

 

 

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES

PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)

YEAR ENDED DECEMBER 31, 2017

(In Millions)

 

    Huntsman          
    International   Pro Forma      
    LLC   Adjustments   Pro Forma  
Revenues:              
Trade sales, services and fees, net   $ 8,208   $ (1,524 )(1) $ 6,684  
Related party sales   150   11 (1) 161  
Total revenues   8,358   (1,513 ) 6,845  
               
Cost of goods sold   6,546   (1,358 )(1) 5,188  
               
Gross profit   1,812   (155 ) 1,657  
               
Operating expenses:              
Selling, general and administrative   793   (39 )(1) 754  
Research and development   138   (6 )(1) 132  
Restructuring, impairment and plant closing costs   20   (1 )(1) 19  
Merger costs   28       28  
Other operating income, net   (23 ) 7 (1) (16 )
Total operating expenses   956   (39 ) 917  
Operating income   856   (116 ) 740  
               
Interest expense   (181 )     (181 )
Equity in income of investment in unconsolidated affiliates   13       13  
Loss on early extinguishment of debt   (54 )     (54 )
Other income, net   6       6  
Income from continuing operations before income taxes   640   (116 ) 524  
               
Income tax expense   (61 ) 44 (2) (17 )
               
Income from continuing operations   $ 579   $ (72 ) $ 507  

 

 

(1)Reflects the removal of results of operations related to the disposition of the Chemical Intermediates Businesses as a result of the sale transaction.

 

(2)Reflects the tax effect of the pro forma adjustments.

 

NOTE: The above pro forma statement of operations does not reflect the net gain on the sale transaction.

 

 

 

 

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES

PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)

YEAR ENDED DECEMBER 31, 2016

(In Millions)

 

    Huntsman          
    International   Pro Forma      
    LLC   Adjustments   Pro Forma  
Revenues:              
Trade sales, services and fees, net   $ 7,387   $ (1,369 )(1) $ 6,018  
Related party sales   131   (3 )(1) 128  
Total revenues   7,518   (1,372 ) 6,146  
               
Cost of goods sold   5,993   (1,175 )(1) 4,818  
               
Gross profit   1,525   (197 ) 1,328  
               
Operating expenses:              
Selling, general and administrative   768   (29 )(1) 739  
Research and development   137   (7 )(1) 130  
Restructuring, impairment and plant closing costs   47   (16 )(1) 31  
Other operating income, net   (101 ) 2 (1) (99 )
Total operating expenses   851   (50 ) 801  
Operating income   674   (147 ) 527  
               
Interest expense   (215 )     (215 )
Equity in income of investment in unconsolidated affiliates   5       5  
Loss on early extinguishment of debt   (3 )     (3 )
Other income, net   14       14  
Income from continuing operations before income taxes   475   (147 ) 328  
               
Income tax expense   (108 ) 53 (2) (55 )
               
Income from continuing operations   $ 367   $ (94 ) $ 273  

 

 

(1)Reflects the removal of results of operations related to the disposition of the Chemical Intermediates Businesses as a result of the sale transaction.

 

(2)Reflects the tax effect of the pro forma adjustments.

 

NOTE: The above pro forma statement of operations does not reflect the net gain on the sale transaction.