Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENT INFORMATION (Tables)

v3.19.3
OPERATING SEGMENT INFORMATION (Tables)
9 Months Ended
Sep. 30, 2019
OPERATING SEGMENT INFORMATION  
Schedule of major products by reportable operating segment

Segment

    

Products

Polyurethanes

MDI, PO, polyols, PG, TPU, aniline and MTBE

Performance Products

Specialty amines, ethyleneamines, maleic anhydride and technology licenses

Advanced Materials

Basic liquid and solid epoxy resins; specialty resin compounds; cross-linking, matting and curing agents; epoxy, acrylic and polyurethane-based formulations

Textile Effects

Textile chemicals, dyes and digital inks

Schedule of revenues and EBITDA for each of the entity's reportable operating segments and reconciliation of adjusted EBITDA to net income

Sales between segments are generally recognized at external market prices and are eliminated in consolidation. Adjusted EBITDA is presented as a measure of the financial performance of our global business units and for reporting the results of our operating segments. The adjusted EBITDA of our reportable operating segments excludes items that principally apply to our Company as a whole. The revenues and adjusted EBITDA from continuing operations for each of our reportable operating segments are as follows (dollars in millions):

Three months

Nine months

ended

ended

September 30, 

September 30, 

    

2019

    

2018

    

2019

    

2018

Revenues:

    

           

           

Polyurethanes

$

993

$

1,126

$

2,931

$

3,268

Performance Products

281

329

880

991

Advanced Materials

256

279

803

850

Textile Effects

179

204

583

631

Corporate and eliminations

(22)

30

(57)

43

Total

$

1,687

$

1,968

$

5,140

$

5,783

Huntsman Corporation:

Segment adjusted EBITDA(1):

Polyurethanes

$

146

$

218

$

426

$

668

Performance Products

38

54

125

158

Advanced Materials

51

56

159

177

Textile Effects

16

25

66

80

Corporate and other(2)

(36)

(45)

(112)

(129)

Total

215

308

664

954

Reconciliation of adjusted EBITDA to net income:

Interest expense—continuing operations

(27)

(30)

(86)

(86)

Interest expense—discontinued operations

(10)

(30)

Income tax expense—continuing operations

(30)

(16)

(113)

(41)

Income tax (expense) benefit—discontinued operations

(25)

41

(44)

(95)

Depreciation and amortization—continuing operations

(65)

(62)

(201)

(187)

Depreciation and amortization—discontinued operations

(13)

(23)

(59)

(63)

Net income attributable to noncontrolling interests

11

3

31

288

Other adjustments:

Business acquisition and integration expenses

(3)

(2)

(4)

(10)

Merger costs

(1)

(2)

EBITDA from discontinued operations

106

(213)

229

525

Noncontrolling interest of discontinued operations

21

(222)

Fair value adjustments to Venator investment

(148)

(90)

Loss on early extinguishment of debt

(23)

(3)

Certain legal settlements and related expenses

(1)

(1)

(1)

(4)

Certain nonrecurring information technology project implementation costs

(1)

(1)

Amortization of pension and postretirement actuarial losses

(16)

(18)

(49)

(50)

Plant incident remediation costs

(5)

(5)

Restructuring, impairment and plant closing and transition credits (costs)

43

(5)

42

(9)

Net income (loss)

$

41

$

(8)

$

290

$

965

Three months

Nine months

ended

ended

September 30, 

September 30, 

    

2019

    

2018

    

2019

    

2018

Huntsman International:

           

           

Segment adjusted EBITDA(1):

Polyurethanes

$

146

$

218

$

426

$

668

Performance Products

38

54

125

158

Advanced Materials

51

56

159

177

Textile Effects

16

25

66

80

Corporate and other(2)

(35)

(45)

(108)

(126)

Total

216

308

668

957

Reconciliation of adjusted EBITDA to net income:

Interest expense—continuing operations

(31)

(36)

(99)

(102)

Interest expense—discontinued operations

(10)

(30)

Income tax expense—continuing operations

(29)

(15)

(110)

(38)

Income tax (expense) benefit—discontinued operations

(25)

41

(44)

(95)

Depreciation and amortization—continuing operations

(65)

(60)

(201)

(184)

Depreciation and amortization—discontinued operations

(13)

(23)

(59)

(63)

Net income attributable to noncontrolling interests

11

3

31

288

Other adjustments:

Business acquisition and integration expenses

(3)

(2)

(4)

(10)

Merger costs

(1)

(2)

EBITDA from discontinued operations

106

(213)

229

525

Noncontrolling interest of discontinued operations

21

(222)

Fair value adjustments to Venator investment

(148)

(90)

Loss on early extinguishment of debt

(23)

(3)

Certain legal settlements and related expenses

(1)

(1)

(1)

(4)

Certain nonrecurring information technology project implementation costs

(1)

(1)

Amortization of pension and postretirement actuarial losses

(17)

(18)

(52)

(52)

Plant incident remediation costs

(5)

(5)

Restructuring, impairment and plant closing and transition credits (costs)

43

(5)

42

(9)

Net income (loss)

$

38

$

(11)

$

281

$

956

(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; (b) merger costs; (c) EBITDA from discontinued operations; (d) noncontrolling interest of discontinued operations; (e) fair value adjustments to Venator investment; (f) loss on early extinguishment of debt; (g) certain legal settlements and related income (expenses); (h) certain nonrecurring information technology project implementation costs; (i) gain (loss) on sale of assets; (j) amortization of pension and postretirement actuarial losses; (k) plant incident remediation costs; (l) U.S. Tax Reform Act impact on noncontrolling interest; and (m) restructuring, impairment, plant closing and transition credits (costs).

(2)          Corporate and other 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.