Huntsman Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENT INFORMATION (Tables)

OPERATING SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2020

Schedule of major products by reportable operating segment


Segment		Products
Polyurethanes		MDI, polyols, PG, 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

The revenues and adjusted EBITDA from continuing operations for each of our reportable operating segments are as follows (dollars in millions):


	Three months
	ended
	March 31,
	2020		2019
Revenues:
Polyurethanes	$	888	$	924
Performance Products		292		300
Advanced Materials		241		272
Textile Effects		180		189
Corporate and eliminations		(8)		(16)
Total	$	1,593	$	1,669

Huntsman Corporation:
Segment adjusted EBITDA(1):
Polyurethanes	$	84	$	124
Performance Products		58		45
Advanced Materials		48		53
Textile Effects		20		22
Corporate and other(2)		(45)		(40)
Total		165		204
Reconciliation of adjusted EBITDA to net income:
Interest expense, net—continuing operations		(18)		(30)
Income tax expense—continuing operations		(7)		(45)
Income tax expense—discontinued operations		(238)		(5)
Depreciation and amortization—continuing operations		(67)		(67)
Depreciation and amortization—discontinued operations		—		(23)
Net income attributable to noncontrolling interests		3		12
Other adjustments:
Business acquisition and integration expenses and purchase accounting inventory adjustments		(13)		(1)
EBITDA from discontinued operations(3)		1,015		51
Fair value adjustments to Venator investment		(110)		76
Loss on early extinguishment of debt		—		(23)
Certain legal settlements and related expenses		(2)		—
Gain on sale of businesses/assets		2		—
Certain nonrecurring information technology project implementation costs		(1)		—
Amortization of pension and postretirement actuarial losses		(18)		(17)
Restructuring, impairment and plant closing and transition costs		(3)		(1)
Net income	$	708	$	131


	Three months
	ended
	March 31,
	2020		2019
Huntsman International:
Segment adjusted EBITDA(1):
Polyurethanes	$	84	$	124
Performance Products		58		45
Advanced Materials		48		53
Textile Effects		20		22
Corporate and other(2)		(44)		(38)
Total		166		206
Reconciliation of adjusted EBITDA to net income:
Interest expense, net—continuing operations		(20)		(35)
Income tax expense—continuing operations		(7)		(44)
Income tax expense—discontinued operations		(238)		(5)
Depreciation and amortization—continuing operations		(67)		(67)
Depreciation and amortization—discontinued operations		—		(23)
Net income attributable to noncontrolling interests		3		12
Other adjustments:
Business acquisition and integration expenses and purchase accounting inventory adjustments		(13)		(1)
EBITDA from discontinued operations(3)		1,015		51
Fair value adjustments to Venator investment		(110)		76
Loss on early extinguishment of debt		—		(23)
Certain legal settlements and related expenses		(2)		—
Gain on sale of businesses/assets		2		—
Certain nonrecurring information technology project implementation costs		(1)		—
Amortization of pension and postretirement actuarial losses		(18)		(18)
Restructuring, impairment and plant closing and transition costs		(3)		(1)
Net income	$	707	$	128

(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 and purchase accounting inventory adjustments; (b) EBITDA from discontinued operations; (c) fair value adjustments to Venator investment; (d) loss on early extinguishment of debt; (e) certain legal settlements and related (expenses) income; (f) (loss) gain on sale of businesses/assets; (g) certain nonrecurring information technology project implementation costs; (h) amortization of pension and postretirement actuarial losses; and (i) restructuring, impairment, plant closing and transition (costs) credits.

(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.

(3)	Includes the gain on the sale of our Chemical Intermediates Businesses in 2020.