| Segment Reporting Disclosure [Text Block] |
26. OPERATING SEGMENT INFORMATION
We derive our revenues, earnings and cash flows from the manufacture and sale of a wide variety of differentiated and commodity chemical products. We have four operating segments, which are also our reportable segments: Polyurethanes, Performance Products, Advanced Materials and Textile Effects. We have organized our business and derived our operating segments around differences in product lines.
The major products of each reportable operating segment are as follows:
| Segment |
|
Products |
| Polyurethanes |
|
MDI, polyols, TPU and other polyurethane-related products |
| Performance Products |
|
Specialty amines, ethyleneamines, maleic anhydride and technology licenses |
| Advanced Materials |
|
Specialty resin compounds; cross-linking, matting, and curing and toughening agents; epoxy, acrylic and polyurethane-based formulations; specialty nitrile latex, alkyd resins and carbon nano materials |
| Textile Effects |
|
Textile chemicals and dyes |
Sales between segments are generally recognized at external market prices and are eliminated in consolidation. We use adjusted EBITDA to measure the financial performance of our global business units and for reporting the results of our operating segments. This measure includes all operating items relating to the businesses. The adjusted EBITDA of operating segments excludes items that principally apply to our Company as a whole. The following schedule includes revenues and adjusted EBITDA for each of our reportable operating segments (dollars in millions). We have revised our prior years’ presentation below to reconcile total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes, in addition to net income, and removed “corporate and other costs, net” from the total reportable segments’ adjusted EBITDA and included such amounts in the reconciliation to income from continuing operations before income taxes. Additionally, we have revised our prior years’ presentation of total reportable segments’ revenues, depreciation and amortization, capital expenditures and total assets, in which we removed intersegment eliminations from the total reportable segment’s revenues and removed depreciation and amortization, capital expenditures and assets related to Corporate and other from the total reportable segments’ respective amounts.
| |
|
Year ended December 31, |
|
| |
|
2021 |
|
|
2020 |
|
|
2019 |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
| Polyurethanes |
|
$ |
5,019 |
|
|
$ |
3,584 |
|
|
$ |
3,911 |
|
| Performance Products |
|
|
1,485 |
|
|
|
1,023 |
|
|
|
1,158 |
|
| Advanced Materials |
|
|
1,198 |
|
|
|
839 |
|
|
|
1,044 |
|
| Textile Effects |
|
|
783 |
|
|
|
597 |
|
|
|
763 |
|
| Total reportable segments’ revenues |
|
|
8,485 |
|
|
|
6,043 |
|
|
|
6,876 |
|
| Intersegment eliminations |
|
|
(32 |
) |
|
|
(25 |
) |
|
|
(79 |
) |
| Total |
|
$ |
8,453 |
|
|
$ |
6,018 |
|
|
$ |
6,797 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Huntsman Corporation: |
|
|
|
|
|
|
|
|
|
|
|
|
| Segment adjusted EBITDA(1): |
|
|
|
|
|
|
|
|
|
|
|
|
| Polyurethanes |
|
$ |
879 |
|
|
$ |
472 |
|
|
$ |
548 |
|
| Performance Products |
|
|
359 |
|
|
|
164 |
|
|
|
168 |
|
| Advanced Materials |
|
|
204 |
|
|
|
130 |
|
|
|
201 |
|
| Textile Effects |
|
|
97 |
|
|
|
42 |
|
|
|
84 |
|
| Total reportable segments’ adjusted EBITDA |
|
|
1,539 |
|
|
|
808 |
|
|
|
1,001 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense, net—continuing operations |
|
|
(67 |
) |
|
|
(86 |
) |
|
|
(111 |
) |
| Depreciation and amortization—continuing operations |
|
|
(296 |
) |
|
|
(283 |
) |
|
|
(270 |
) |
| Corporate and other costs, net(2) |
|
|
(196 |
) |
|
|
(161 |
) |
|
|
(155 |
) |
| Net income attributable to noncontrolling interests |
|
|
59 |
|
|
|
32 |
|
|
|
36 |
|
| Other adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
| Business acquisition and integration expenses and purchase accounting inventory adjustments |
|
|
(22 |
) |
|
|
(31 |
) |
|
|
(5 |
) |
| Fair value adjustments to Venator investment and related loss on disposal |
|
|
(28 |
) |
|
|
(88 |
) |
|
|
(18 |
) |
| Loss on early extinguishment of debt |
|
|
(27 |
) |
|
|
— |
|
|
|
(23 |
) |
| Certain legal and other settlements and related expenses |
|
|
(13 |
) |
|
|
(5 |
) |
|
|
(6 |
) |
| Income associated with the Albemarle Settlement, net |
|
|
465 |
|
|
|
— |
|
|
|
— |
|
| Gain (loss) on sale of businesses/assets |
|
|
30 |
|
|
|
280 |
|
|
|
(21 |
) |
| Income from transition services arrangements |
|
|
8 |
|
|
|
7 |
|
|
|
— |
|
| Certain nonrecurring information technology project implementation costs |
|
|
(8 |
) |
|
|
(6 |
) |
|
|
(4 |
) |
| Amortization of pension and postretirement actuarial losses |
|
|
(86 |
) |
|
|
(76 |
) |
|
|
(66 |
) |
| Plant incident remediation costs |
|
|
— |
|
|
|
(2 |
) |
|
|
(8 |
) |
| Restructuring, impairment and plant closing and transition (costs) credits(3) |
|
|
(45 |
) |
|
|
(52 |
) |
|
|
41 |
|
| Income from continuing operations before income taxes |
|
|
1,313 |
|
|
|
337 |
|
|
|
391 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax (expense) benefit—continuing operations |
|
|
(209 |
) |
|
|
(46 |
) |
|
|
38 |
|
| Income from discontinued operations, net of tax |
|
|
— |
|
|
|
775 |
|
|
|
169 |
|
| Net income |
|
$ |
1,104 |
|
|
$ |
1,066 |
|
|
$ |
598 |
|
| |
|
Year ended December 31, |
|
| |
|
2021 |
|
|
2020 |
|
|
2019 |
|
| Depreciation and Amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
| Polyurethanes |
|
$ |
131 |
|
|
$ |
130 |
|
|
$ |
120 |
|
| Performance Products |
|
|
74 |
|
|
|
79 |
|
|
|
81 |
|
| Advanced Materials |
|
|
60 |
|
|
|
45 |
|
|
|
36 |
|
| Textile Effects |
|
|
18 |
|
|
|
16 |
|
|
|
16 |
|
| Total reportable segments’ depreciation and amortization |
|
|
283 |
|
|
|
270 |
|
|
|
253 |
|
| Corporate and other |
|
|
13 |
|
|
|
13 |
|
|
|
17 |
|
| Total |
|
$ |
296 |
|
|
$ |
283 |
|
|
$ |
270 |
|
| |
|
Year ended December 31, |
|
| |
|
2021 |
|
|
2020 |
|
|
2019 |
|
| Capital Expenditures: |
|
|
|
|
|
|
|
|
|
|
|
|
| Polyurethanes |
|
$ |
243 |
|
|
$ |
172 |
|
|
$ |
185 |
|
| Performance Products |
|
|
42 |
|
|
|
32 |
|
|
|
32 |
|
| Advanced Materials |
|
|
25 |
|
|
|
21 |
|
|
|
24 |
|
| Textile Effects |
|
|
16 |
|
|
|
12 |
|
|
|
22 |
|
| Total reportable segments’ capital expenditures |
|
|
326 |
|
|
|
237 |
|
|
|
263 |
|
| Corporate and other |
|
|
16 |
|
|
|
12 |
|
|
|
11 |
|
| Total |
|
$ |
342 |
|
|
$ |
249 |
|
|
$ |
274 |
|
| |
|
December 31, |
|
| |
|
2021 |
|
|
2020 |
|
| Total Assets: |
|
|
|
|
|
|
|
|
| Polyurethanes |
|
$ |
4,624 |
|
|
$ |
3,970 |
|
| Performance Products |
|
|
1,207 |
|
|
|
1,062 |
|
| Advanced Materials |
|
|
1,324 |
|
|
|
1,002 |
|
| Textile Effects |
|
|
487 |
|
|
|
481 |
|
| Total reportable segments’ total assets |
|
|
7,642 |
|
|
|
6,515 |
|
| Corporate and other |
|
|
1,750 |
|
|
|
2,198 |
|
| Total |
|
$ |
9,392 |
|
|
$ |
8,713 |
|
| |
|
December 31, |
|
| |
|
2021 |
|
|
2020 |
|
| Goodwill: |
|
|
|
|
|
|
|
|
| Polyurethanes |
|
$ |
344 |
|
|
$ |
312 |
|
| Performance Products |
|
|
16 |
|
|
|
18 |
|
| Advanced Materials |
|
|
290 |
|
|
|
203 |
|
| Total |
|
$ |
650 |
|
|
$ |
533 |
|
| |
|
Year ended December 31, |
|
| |
|
2021 |
|
|
2020 |
|
|
2019 |
|
| Huntsman International: |
|
|
|
|
|
|
|
|
|
|
|
|
| Segment adjusted EBITDA(1): |
|
|
|
|
|
|
|
|
|
|
|
|
| Polyurethanes |
|
$ |
879 |
|
|
$ |
472 |
|
|
$ |
548 |
|
| Performance Products |
|
|
359 |
|
|
|
164 |
|
|
|
168 |
|
| Advanced Materials |
|
|
204 |
|
|
|
130 |
|
|
|
201 |
|
| Textile Effects |
|
|
97 |
|
|
|
42 |
|
|
|
84 |
|
| Total reportable segments’ adjusted EBITDA |
|
|
1,539 |
|
|
|
808 |
|
|
|
1,001 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense, net—continuing operations |
|
|
(67 |
) |
|
|
(88 |
) |
|
|
(126 |
) |
| Depreciation and amortization—continuing operations |
|
|
(296 |
) |
|
|
(283 |
) |
|
|
(270 |
) |
| Corporate and other costs, net(2) |
|
|
(189 |
) |
|
|
(155 |
) |
|
|
(150 |
) |
| Net income attributable to noncontrolling interests |
|
|
59 |
|
|
|
32 |
|
|
|
36 |
|
| Other adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
| Business acquisition and integration expenses and purchase accounting inventory adjustments |
|
|
(22 |
) |
|
|
(31 |
) |
|
|
(5 |
) |
| Fair value adjustments to Venator investment and related loss on disposal |
|
|
(28 |
) |
|
|
(88 |
) |
|
|
(18 |
) |
| Loss on early extinguishment of debt |
|
|
(27 |
) |
|
|
— |
|
|
|
(23 |
) |
| Certain legal and other settlements and related expenses |
|
|
(13 |
) |
|
|
(5 |
) |
|
|
(6 |
) |
| Income associated with the Albemarle Settlement, net |
|
|
465 |
|
|
|
— |
|
|
|
— |
|
| Gain (loss) on sale of businesses/assets |
|
|
30 |
|
|
|
280 |
|
|
|
(21 |
) |
| Income from transition services arrangements |
|
|
8 |
|
|
|
7 |
|
|
|
— |
|
| Certain nonrecurring information technology project implementation costs |
|
|
(8 |
) |
|
|
(6 |
) |
|
|
(4 |
) |
| Amortization of pension and postretirement actuarial losses |
|
|
(89 |
) |
|
|
(79 |
) |
|
|
(70 |
) |
| Plant incident remediation costs |
|
|
— |
|
|
|
(2 |
) |
|
|
(8 |
) |
| Restructuring, impairment and plant closing and transition (costs) credits(3) |
|
|
(45 |
) |
|
|
(52 |
) |
|
|
41 |
|
| Income from continuing operations before income taxes |
|
|
1,317 |
|
|
|
338 |
|
|
|
377 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax (expense) benefit—continuing operations |
|
|
(210 |
) |
|
|
(46 |
) |
|
|
41 |
|
| Income from discontinued operations, net of tax |
|
|
— |
|
|
|
775 |
|
|
|
169 |
|
| Net income |
|
$ |
1,107 |
|
|
$ |
1,067 |
|
|
$ |
587 |
|
| |
|
Year ended December 31, |
|
| |
|
2021 |
|
|
2020 |
|
|
2019 |
|
| Depreciation and Amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
| Polyurethanes |
|
$ |
131 |
|
|
$ |
130 |
|
|
$ |
120 |
|
| Performance Products |
|
|
74 |
|
|
|
79 |
|
|
|
81 |
|
| Advanced Materials |
|
|
60 |
|
|
|
45 |
|
|
|
36 |
|
| Textile Effects |
|
|
18 |
|
|
|
16 |
|
|
|
16 |
|
| Total reportable segments’ depreciation and amortization |
|
|
283 |
|
|
|
270 |
|
|
|
253 |
|
| Corporate and other |
|
|
13 |
|
|
|
13 |
|
|
|
17 |
|
| Total |
|
$ |
296 |
|
|
$ |
283 |
|
|
$ |
270 |
|
| |
|
Year ended December 31, |
|
| |
|
2021 |
|
|
2020 |
|
|
2019 |
|
| Capital Expenditures: |
|
|
|
|
|
|
|
|
|
|
|
|
| Polyurethanes |
|
$ |
243 |
|
|
$ |
172 |
|
|
$ |
185 |
|
| Performance Products |
|
|
42 |
|
|
|
32 |
|
|
|
32 |
|
| Advanced Materials |
|
|
25 |
|
|
|
21 |
|
|
|
24 |
|
| Textile Effects |
|
|
16 |
|
|
|
12 |
|
|
|
22 |
|
| Total reportable segments’ capital expenditures |
|
|
326 |
|
|
|
237 |
|
|
|
263 |
|
| Corporate and other |
|
|
16 |
|
|
|
12 |
|
|
|
11 |
|
| Total |
|
$ |
342 |
|
|
$ |
249 |
|
|
$ |
274 |
|
| |
|
December 31, |
|
| |
|
2021 |
|
|
2020 |
|
| Total Assets: |
|
|
|
|
|
|
|
|
| Polyurethanes |
|
$ |
4,624 |
|
|
$ |
3,970 |
|
| Performance Products |
|
|
1,207 |
|
|
|
1,062 |
|
| Advanced Materials |
|
|
1,324 |
|
|
|
1,002 |
|
| Textile Effects |
|
|
487 |
|
|
|
481 |
|
| Total reportable segments’ total assets |
|
|
7,642 |
|
|
|
6,515 |
|
| Corporate and other |
|
|
1,989 |
|
|
|
2,241 |
|
| Total |
|
$ |
9,631 |
|
|
$ |
8,756 |
|
| |
|
December 31, |
|
| |
|
2021 |
|
|
2020 |
|
| Goodwill: |
|
|
|
|
|
|
|
|
| Polyurethanes |
|
$ |
344 |
|
|
$ |
312 |
|
| Performance Products |
|
|
16 |
|
|
|
18 |
|
| Advanced Materials |
|
|
290 |
|
|
|
203 |
|
| Total |
|
$ |
650 |
|
|
$ |
533 |
|
| (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) fair value adjustments to Venator investment and related loss on disposal; (c) loss on early extinguishment of debt; (d) certain legal and other settlements and related expenses; (e) income associated with the Albemarle Settlement, net; (f) gain (loss) on sale of businesses/assets; (g) income from transition services arrangements related to the sale of our Chemical Intermediates Businesses to Indorama; (h) certain nonrecurring information technology project implementation costs; (i) amortization of pension and postretirement actuarial losses; (j) plant incident remediation costs; (k) restructuring, impairment, plant closing and transition (costs) credits; and (l) income from discontinued operations, net of tax. |
| (2) |
Corporate and other costs, net includes unallocated corporate overhead, unallocated foreign exchange gains and losses, LIFO inventory valuation reserve adjustments, nonoperating income and expense and gains and losses on the disposition of corporate assets. |
| (3) |
Includes costs associated with transition activities relating primarily to our Corporate program to optimize our global approach to leverage shared services capabilities as well as our 2020 CVC Thermoset Specialties Acquisition. |
| |
|
Year ended December 31, |
|
| |
|
2021 |
|
|
2020 |
|
|
2019 |
|
| Revenues by geographic area(1): |
|
|
|
|
|
|
|
|
|
|
|
|
| United States |
|
$ |
2,700 |
|
|
$ |
1,863 |
|
|
$ |
2,025 |
|
| China |
|
|
1,565 |
|
|
|
1,115 |
|
|
|
1,076 |
|
| Germany |
|
|
553 |
|
|
|
388 |
|
|
|
541 |
|
| Italy |
|
|
315 |
|
|
|
210 |
|
|
|
231 |
|
| India |
|
|
282 |
|
|
|
211 |
|
|
|
319 |
|
| Other nations |
|
|
3,038 |
|
|
|
2,231 |
|
|
|
2,605 |
|
| Total |
|
$ |
8,453 |
|
|
$ |
6,018 |
|
|
$ |
6,797 |
|
| |
|
December 31, |
|
| |
|
2021 |
|
|
2020 |
|
| Long-lived assets(2): |
|
|
|
|
|
|
|
|
| United States |
|
$ |
1,212 |
|
|
$ |
1,078 |
|
| The Netherlands |
|
|
337 |
|
|
|
368 |
|
| China |
|
|
256 |
|
|
|
251 |
|
| Germany |
|
|
129 |
|
|
|
144 |
|
| Saudi Arabia |
|
|
133 |
|
|
|
143 |
|
| Singapore |
|
|
80 |
|
|
|
90 |
|
| Switzerland |
|
|
77 |
|
|
|
73 |
|
| Other nations |
|
|
352 |
|
|
|
358 |
|
| Total |
|
$ |
2,576 |
|
|
$ |
2,505 |
|
| (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. |
|