Huntsman Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

OPERATING SEGMENT INFORMATION (Tables)

OPERATING SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of major products by reportable operating segment


Segment		Products
Polyurethanes		MDI, polyols, TPU and aniline
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 EBITDA, Assets, Goodwill and Depreciation for each of the entity's reportable operating segments


	Year ended December 31,
	2019		2018		2017
Revenues:
Polyurethanes	$	3,911	$	4,282	$	3,764
Performance Products		1,158		1,301		1,156
Advanced Materials		1,044		1,116		1,040
Textile Effects		763		824		776
Corporate and eliminations		(79)		81		109
Total	$	6,797	$	7,604	$	6,845

Huntsman Corporation:
Segment adjusted EBITDA(1):
Polyurethanes	$	548	$	809	$	776
Performance Products		168		197		155
Advanced Materials		201		225		219
Textile Effects		84		101		83
Corporate and other(2)		(155)		(171)		(193)
Total		846		1,161		1,040
Reconciliation of adjusted EBITDA to net income:
Interest expense—continuing operations		(111)		(115)		(165)
Interest expense—discontinued operations		—		(36)		(19)
Income tax benefit (expense)—continuing operations		38		(45)		(20)
Income tax expense—discontinued operations		(35)		(86)		(111)
Depreciation and amortization—continuing operations		(270)		(255)		(236)
Depreciation and amortization—discontinued operations		(61)		(88)		(151)
Net income attributable to noncontrolling interests		36		313		105
Other adjustments:
Business acquisition and integration expenses and purchase accounting inventory adjustments		(5)		(9)		(19)
Merger costs		—		(2)		(28)
EBITDA from discontinued operations		265		171		511
Noncontrolling interest of discontinued operations		—		(232)		(49)
Fair value adjustments to Venator investment		(18)		(62)		—
Loss on early extinguishment of debt		(23)		(3)		(54)
Certain legal settlements and related (expenses) income		(6)		(1)		11
(Loss) gain on sale of businesses/assets		(21)		—		9
Certain nonrecurring information technology project implementation costs		(4)		—		—
Amortization of pension and postretirement actuarial losses		(66)		(67)		(69)
Plant incident remediation costs		(8)		—		(1)
U.S. Tax Reform Act impact on noncontrolling interest		—		—		6
Restructuring, impairment and plant closing and transition credits (costs)		41		6		(19)
Net income	$	598	$	650	$	741


	Year ended December 31,
	2019		2018		2017
Depreciation and Amortization:
Polyurethanes	$	120	$	108	$	92
Performance Products		81		78		78
Advanced Materials		36		37		33
Textile Effects		16		16		14
Corporate and other		17		16		19
Total	$	270	$	255	$	236


	Year ended December 31,
	2019		2018		2017
Capital Expenditures:
Polyurethanes	$	185	$	153	$	158
Performance Products		32		48		35
Advanced Materials		24		20		21
Textile Effects		22		20		16
Corporate and other		11		10		4
Total	$	274	$	251	$	234


	December 31,
	2019		2018
Total Assets:
Polyurethanes	$	3,437	$	3,129
Performance Products		1,125		1,161
Advanced Materials		774		796
Textile Effects		511		571
Corporate and other		1,265		1,187
Total	$	7,112	$	6,844

Schedule of revenues and long-lived assets by geographical area


	Year ended December 31,
	2019		2018		2017
Revenues by geographic area(1):
United States	$	2,025	$	2,136	$	1,828
China		1,076		1,260		1,122
Germany		541		537		507
India		319		352		336
Other nations		2,836		3,319		3,052
Total	$	6,797	$	7,604	$	6,845


	December 31,
	2019		2018
Long-lived assets(2):
United States	$	970	$	944
The Netherlands		334		331
China		247		247
Saudi Arabia		154		161
Germany		137		143
Switzerland		106		108
Singapore		94		96
Other nations		341		323
Total	$	2,383	$	2,353

(1) Geographic information for revenues is based upon countries into which product is sold.

(2) Long-lived assets consist of property, plant and equipment, net.

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES

OPERATING SEGMENT INFORMATION

Schedule of EBITDA, Assets, Goodwill and Depreciation for each of the entity's reportable operating segments


	Year ended December 31,
	2019		2018		2017
Huntsman International:
Segment adjusted EBITDA(1):
Polyurethanes	$	548	$	809	$	776
Performance Products		168		197		155
Advanced Materials		201		225		219
Textile Effects		84		101		83
Corporate and other(2)		(150)		(167)		(189)
Total		851		1,165		1,044
Reconciliation of adjusted EBITDA to net income:
Interest expense—continuing operations		(126)		(136)		(181)
Interest expense—discontinued operations		—		(36)		(19)
Income tax benefit (expense)—continuing operations		41		(41)		(17)
Income tax expense—discontinued operations		(35)		(86)		(111)
Depreciation and amortization—continuing operations		(270)		(252)		(228)
Depreciation and amortization—discontinued operations		(61)		(88)		(151)
Net income attributable to noncontrolling interests		36		313		105
Other adjustments:
Business acquisition and integration expenses and purchase accounting inventory adjustments		(5)		(9)		(23)
Merger costs		—		(2)		(28)
EBITDA from discontinued operations		265		171		511
Noncontrolling interest of discontinued operations		—		(232)		(49)
Fair value adjustments to Venator investment		(18)		(62)		—
Loss on early extinguishment of debt		(23)		(3)		(54)
Certain legal settlements and related (expenses) income		(6)		(1)		11
(Loss) gain on sale of businesses/assets		(21)		—		10
Certain nonrecurring information technology project implementation costs		(4)		—		—
Amortization of pension and postretirement actuarial losses		(70)		(71)		(72)
Plant incident remediation costs		(8)		—		(1)
U.S. Tax Reform Act impact on noncontrolling interest		—		—		6
Restructuring, impairment and plant closing and transition credits (costs)		41		6		(19)
Net income	$	587	$	636	$	734


	Year ended December 31,
	2019		2018		2017
Depreciation and Amortization:
Polyurethanes	$	120	$	108	$	92
Performance Products		81		78		78
Advanced Materials		36		37		33
Textile Effects		16		16		14
Corporate and other		17		13		11
Total	$	270	$	252	$	228


	Year ended December 31,
	2019		2018		2017
Capital Expenditures:
Polyurethanes	$	185	$	153	$	158
Performance Products		32		48		35
Advanced Materials		24		20		21
Textile Effects		22		20		16
Corporate and other		11		10		4
Total	$	274	$	251	$	234


	December 31,
	2019		2018
Total Assets:
Polyurethanes	$	3,437	$	3,129
Performance Products		1,125		1,161
Advanced Materials		774		796
Textile Effects		511		571
Corporate and other		1,668		1,569
Total	$	7,515	$	7,226


	December 31,
	2019		2018
Goodwill:
Polyurethanes	$	177	$	173
Performance Products		16		16
Advanced Materials		83		86
Total	$	276	$	275

(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 management 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) 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) gain on sale of businesses/assets; (i) certain nonrecurring information technology project implementation costs; (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, nonoperating income and expense, benzene sales and gains and losses on the disposition of corporate assets.