Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 19, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | Huntsman CORP | |
Entity Central Index Key | 1,307,954 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 239,180,054 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Current assets: | |||
Cash and cash equivalents | [1] | $ 444 | $ 470 |
Restricted cash | [1] | 9 | 11 |
Accounts and notes receivable (net of allowance for doubtful accounts of $27 and $25, respectively), ($415 and $334 pledged as collateral, respectively) | [1] | 1,374 | 1,256 |
Accounts receivable from affiliates | 33 | 27 | |
Inventories | [1] | 1,203 | 1,073 |
Prepaid expenses | 69 | 60 | |
Other current assets | [1] | 193 | 202 |
Current assets held for sale | 3,060 | 2,880 | |
Total current assets | 6,385 | 5,979 | |
Property, plant and equipment, net | [1] | 3,117 | 3,098 |
Investment in unconsolidated affiliates | 284 | 266 | |
Intangible assets, net | [1] | 55 | 56 |
Goodwill | 141 | 140 | |
Deferred income taxes | 212 | 208 | |
Other noncurrent assets | [1] | 509 | 497 |
Total assets | 10,703 | 10,244 | |
Current liabilities: | |||
Accounts payable | [1] | 961 | 946 |
Accounts payable to affiliates | 32 | 18 | |
Accrued liabilities | [1] | 533 | 569 |
Current portion of debt | [1] | 36 | 40 |
Current liabilities held for sale | 1,721 | 1,692 | |
Total current liabilities | 3,283 | 3,265 | |
Long-term debt | [1] | 2,298 | 2,258 |
Deferred income taxes | 269 | 264 | |
Other noncurrent liabilities | [1] | 1,084 | 1,086 |
Total liabilities | 6,934 | 6,873 | |
Commitments and contingencies (Notes 14 and 15) | |||
Huntsman Corporation stockholders' equity or Huntsman International LLC members' equity: | |||
Common stock $0.01 par value, 1,200,000,000 shares authorized, 254,124,395 and 252,759,715 shares issued and 239,831,871 and 240,213,606 shares outstanding, respectively | 3 | 3 | |
Additional paid-in capital | 3,939 | 3,889 | |
Treasury stock, 14,292,523 and 12,607,223 shares, respectively | (201) | (150) | |
Unearned stock-based compensation | (26) | (15) | |
Retained earnings | 393 | 161 | |
Accumulated other comprehensive loss | (1,198) | (1,268) | |
Total Huntsman Corporation stockholders' equity | 2,910 | 2,620 | |
Noncontrolling interests in subsidiaries | 859 | 751 | |
Total equity | 3,769 | 3,371 | |
Total liabilities and equity | 10,703 | 10,244 | |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Current assets: | |||
Cash and cash equivalents | [1] | 444 | 468 |
Restricted cash | [1] | 9 | 11 |
Accounts and notes receivable (net of allowance for doubtful accounts of $27 and $25, respectively), ($415 and $334 pledged as collateral, respectively) | [1] | 1,374 | 1,255 |
Accounts receivable from affiliates | 393 | 373 | |
Inventories | [1] | 1,203 | 1,073 |
Prepaid expenses | 68 | 59 | |
Other current assets | [1] | 196 | 204 |
Current assets held for sale | 3,060 | 2,880 | |
Total current assets | 6,747 | 6,323 | |
Property, plant and equipment, net | [1] | 3,115 | 3,095 |
Investment in unconsolidated affiliates | 284 | 266 | |
Intangible assets, net | [1] | 55 | 56 |
Goodwill | 141 | 140 | |
Deferred income taxes | 212 | 208 | |
Other noncurrent assets | [1] | 511 | 497 |
Total assets | 11,065 | 10,585 | |
Current liabilities: | |||
Accounts payable | [1] | 961 | 946 |
Accounts payable to affiliates | 89 | 70 | |
Accrued liabilities | [1] | 531 | 566 |
Notes payable to affiliates | 100 | 100 | |
Current portion of debt | [1] | 36 | 40 |
Current liabilities held for sale | 1,721 | 1,692 | |
Total current liabilities | 3,438 | 3,414 | |
Long-term debt | [1] | 2,298 | 2,258 |
Notes payable to affiliates | 702 | 742 | |
Deferred income taxes | 271 | 265 | |
Other noncurrent liabilities | [1] | 1,077 | 1,072 |
Total liabilities | 7,786 | 7,751 | |
Commitments and contingencies (Notes 14 and 15) | |||
Huntsman Corporation stockholders' equity or Huntsman International LLC members' equity: | |||
Members' equity, 2,728 units issued and outstanding | 3,639 | 3,616 | |
Retained earnings | (28) | (270) | |
Accumulated other comprehensive loss | (1,191) | (1,263) | |
Total Huntsman International LLC members' equity | 2,420 | 2,083 | |
Noncontrolling interests in subsidiaries | 859 | 751 | |
Total equity | 3,279 | 2,834 | |
Total liabilities and equity | $ 11,065 | $ 10,585 | |
[1] | At March 31, 2018 and December 31, 2017, respectively, $13 and $15 of cash and cash equivalents, $9 and $11 of restricted cash, $38 and $35 of accounts and notes receivable (net), $52 and $46 of inventories, $7 each of other current assets, $265 and $283 of property, plant and equipment (net), $10 each of intangible assets (net), $57 and $43 of other noncurrent assets, $91 and $109 of accounts payable, $32 each of accrued liabilities, $22 and $21 of current portion of debt, $83 and $86 of longterm debt, and $99 and $98 of other noncurrent liabilities from consolidated variable interest entities are included in the respective balance sheet captions above. See “Note 5. Variable Interest Entities.” |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Accounts and notes receivable, allowance for doubtful accounts (in dollars) | $ 27 | $ 25 | |
Accounts and notes receivable, pledged as collateral (in dollars) | $ 415 | $ 334 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 1,200,000,000 | 1,200,000,000 | |
Common stock, shares issued | 254,124,395 | 252,759,715 | |
Common stock, shares outstanding | 239,831,871 | 240,213,606 | |
Treasury stock, shares | 14,292,523 | 12,607,223 | |
Variable Interest Entity | |||
Cash and cash equivalents from continuing operations at beginning of period | [1] | $ 444 | $ 470 |
Restricted cash | [1] | 9 | 11 |
Accounts and notes receivable (net) | [1] | 1,374 | 1,256 |
Inventories | [1] | 1,203 | 1,073 |
Other current assets | [1] | 193 | 202 |
Property, plant and equipment (net) | [1] | 3,117 | 3,098 |
Intangible assets (net) | [1] | 55 | 56 |
Other noncurrent assets | [1] | 509 | 497 |
Accounts payable | [1] | 961 | 946 |
Accrued liabilities | [1] | 533 | 569 |
Current portion of debt | [1] | 36 | 40 |
Long-term debt | [1] | 2,298 | 2,258 |
Other noncurrent liabilities | [1] | 1,084 | 1,086 |
Consolidated VIE's | |||
Variable Interest Entity | |||
Cash and cash equivalents from continuing operations at beginning of period | 13 | 15 | |
Restricted cash | 9 | 11 | |
Accounts and notes receivable (net) | 38 | 35 | |
Inventories | 52 | 46 | |
Other current assets | 7 | 7 | |
Property, plant and equipment (net) | 265 | 283 | |
Intangible assets (net) | 10 | 10 | |
Other noncurrent assets | 57 | 43 | |
Accounts payable | 91 | 109 | |
Accrued liabilities | 32 | 32 | |
Current portion of debt | 22 | 21 | |
Long-term debt | 83 | 86 | |
Other noncurrent liabilities | 99 | 98 | |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Accounts and notes receivable, allowance for doubtful accounts (in dollars) | 27 | 25 | |
Accounts and notes receivable, pledged as collateral (in dollars) | $ 415 | $ 334 | |
Members' equity, units issued (in units) | 2,728 | 2,728 | |
Members' equity, units outstanding (in units) | 2,728 | 2,728 | |
Variable Interest Entity | |||
Cash and cash equivalents from continuing operations at beginning of period | [1] | $ 444 | $ 468 |
Restricted cash | [1] | 9 | 11 |
Accounts and notes receivable (net) | [1] | 1,374 | 1,255 |
Inventories | [1] | 1,203 | 1,073 |
Other current assets | [1] | 196 | 204 |
Property, plant and equipment (net) | [1] | 3,115 | 3,095 |
Intangible assets (net) | [1] | 55 | 56 |
Other noncurrent assets | [1] | 511 | 497 |
Accounts payable | [1] | 961 | 946 |
Accrued liabilities | [1] | 531 | 566 |
Current portion of debt | [1] | 36 | 40 |
Long-term debt | [1] | 2,298 | 2,258 |
Other noncurrent liabilities | [1] | 1,077 | 1,072 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Consolidated VIE's | |||
Variable Interest Entity | |||
Cash and cash equivalents from continuing operations at beginning of period | 13 | 15 | |
Restricted cash | 9 | 11 | |
Accounts and notes receivable (net) | 38 | 35 | |
Inventories | 52 | 46 | |
Other current assets | 7 | 7 | |
Property, plant and equipment (net) | 265 | 283 | |
Intangible assets (net) | 10 | 10 | |
Other noncurrent assets | 57 | 43 | |
Accounts payable | 91 | 109 | |
Accrued liabilities | 32 | 32 | |
Current portion of debt | 22 | 21 | |
Long-term debt | 83 | 86 | |
Other noncurrent liabilities | $ 99 | $ 98 | |
[1] | At March 31, 2018 and December 31, 2017, respectively, $13 and $15 of cash and cash equivalents, $9 and $11 of restricted cash, $38 and $35 of accounts and notes receivable (net), $52 and $46 of inventories, $7 each of other current assets, $265 and $283 of property, plant and equipment (net), $10 each of intangible assets (net), $57 and $43 of other noncurrent assets, $91 and $109 of accounts payable, $32 each of accrued liabilities, $22 and $21 of current portion of debt, $83 and $86 of longterm debt, and $99 and $98 of other noncurrent liabilities from consolidated variable interest entities are included in the respective balance sheet captions above. See “Note 5. Variable Interest Entities.” |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues: | ||
Revenues | $ 2,295 | $ 1,932 |
Cost of goods sold | 1,755 | 1,542 |
Gross profit | 540 | 390 |
Operating expenses: | ||
Selling, general and administrative | 192 | 192 |
Research and development | 38 | 34 |
Restructuring, impairment and plant closing costs | 2 | 9 |
Other operating expense (income), net | 12 | (7) |
Total operating expenses | 244 | 228 |
Operating income | 296 | 162 |
Interest expense | (27) | (48) |
Equity in income of investment in unconsolidated affiliates | 13 | |
Other income, net | 7 | 4 |
Income from continuing operations before income taxes | 289 | 118 |
Income tax expense | (53) | (19) |
Income from continuing operations | 236 | 99 |
Income (loss) from discontinued operations, net of tax | 114 | (7) |
Net income | 350 | 92 |
Net income attributable to noncontrolling interests | (76) | (16) |
Net income attributable to Huntsman Corporation or Huntsman International LLC | $ 274 | $ 76 |
Basic income (loss) per share: | ||
Income from continuing operations attributable to Huntsman Corporation common stockholders (in dollars per share) | $ 0.66 | $ 0.35 |
Income (loss) from discontinued operations attributable to Huntsman Corporation common stockholders, net of tax x (in dollars per share) | 0.48 | (0.03) |
Net income attributable to Huntsman Corporation common stockholders (in dollars per share) | $ 1.14 | $ 0.32 |
Weighted average shares (in shares) | 240.8 | 237.4 |
Diluted income (loss) per share: | ||
Income from continuing operations attributable to Huntsman Corporation common stockholders (in dollars per share) | $ 0.65 | $ 0.34 |
Income (loss) from discontinued operations attributable to Huntsman Corporation common stockholders, net of tax | 0.46 | (0.03) |
Net income attributable to Huntsman Corporation common stockholders (in dollars per share) | $ 1.11 | $ 0.31 |
Weighted average shares (in shares) | 245.9 | 242.5 |
Amounts attributable to Huntsman Corporation common stockholders: | ||
Income from continuing operations | $ 160 | $ 83 |
Income (loss) from discontinued operations, net of tax | 114 | (7) |
Net income attributable to Huntsman Corporation or Huntsman International LLC | $ 274 | $ 76 |
Dividends per share (in dollars per share) | $ 0.1625 | $ 0.125 |
Third Party Customers | ||
Revenues: | ||
Revenues | $ 2,255 | $ 1,891 |
Related Party Customers | ||
Revenues: | ||
Revenues | 40 | 41 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Revenues: | ||
Revenues | 2,295 | 1,932 |
Cost of goods sold | 1,754 | 1,540 |
Gross profit | 541 | 392 |
Operating expenses: | ||
Selling, general and administrative | 191 | 190 |
Research and development | 38 | 34 |
Restructuring, impairment and plant closing costs | 2 | 9 |
Other operating expense (income), net | 12 | (6) |
Total operating expenses | 243 | 227 |
Operating income | 298 | 165 |
Interest expense | (32) | (51) |
Equity in income of investment in unconsolidated affiliates | 13 | |
Other income, net | 6 | 4 |
Income from continuing operations before income taxes | 285 | 118 |
Income tax expense | (52) | (19) |
Income from continuing operations | 233 | 99 |
Income (loss) from discontinued operations, net of tax | 114 | (8) |
Net income | 347 | 91 |
Net income attributable to noncontrolling interests | (76) | (16) |
Net income attributable to Huntsman Corporation or Huntsman International LLC | 271 | 75 |
Amounts attributable to Huntsman Corporation common stockholders: | ||
Net income attributable to Huntsman Corporation or Huntsman International LLC | 271 | 75 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Third Party Customers | ||
Revenues: | ||
Revenues | 2,255 | 1,891 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Related Party Customers | ||
Revenues: | ||
Revenues | $ 40 | $ 41 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net income | $ 350 | $ 92 |
Other comprehensive income, net of tax: | ||
Foreign currency translations adjustments | 87 | 77 |
Pension and other postretirement benefits adjustments | 25 | 18 |
Other, net | (9) | 2 |
Other comprehensive income, net of tax | 103 | 97 |
Comprehensive income | 453 | 189 |
Comprehensive income attributable to noncontrolling interests | (83) | (18) |
Comprehensive income attributable to Huntsman Corporation | 370 | 171 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Net income | 347 | 91 |
Other comprehensive income, net of tax: | ||
Foreign currency translations adjustments | 85 | 77 |
Pension and other postretirement benefits adjustments | 25 | 20 |
Other, net | (5) | 2 |
Other comprehensive income, net of tax | 105 | 99 |
Comprehensive income | 452 | 190 |
Comprehensive income attributable to noncontrolling interests | (83) | (18) |
Comprehensive income attributable to Huntsman Corporation | $ 369 | $ 172 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIESMembers' equity | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIESRetained earnings (accumulated deficit) | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIESAccumulated other comprehensive (loss) income | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIESNoncontrolling interests in subsidiaries | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Common stock | Additional paid-in capital | Treasury stock | Unearned stock-based compensation | Retained earnings (accumulated deficit) | Accumulated other comprehensive (loss) income | Noncontrolling interests in subsidiaries | Total |
Balance at the beginning of the period at Dec. 31, 2016 | $ 3 | $ 3,447 | $ (150) | $ (17) | $ (325) | $ (1,671) | $ 180 | $ 1,467 | |||||
Balance (in shares) at Dec. 31, 2016 | 236,370,347 | ||||||||||||
Balance at the beginning of the period at Dec. 31, 2016 | $ 3,226 | $ (779) | $ (1,691) | $ 180 | $ 936 | ||||||||
Balance (in units) at Dec. 31, 2016 | 2,728 | ||||||||||||
Increase (Decrease) in Stockholders' Equity and Members' Equity | |||||||||||||
Net income | 75 | 16 | 91 | 76 | 16 | 92 | |||||||
Dividends paid to parent | (30) | (30) | |||||||||||
Other comprehensive income | 97 | 2 | 99 | 95 | 2 | 97 | |||||||
Contribution from parent | $ 9 | 9 | |||||||||||
Issuance of nonvested stock awards | 17 | (17) | |||||||||||
Vesting of stock awards | 8 | 8 | |||||||||||
Vesting of stock awards (in shares) | 1,158,884 | ||||||||||||
Recognition of stock-based compensation | 2 | 5 | 7 | ||||||||||
Repurchase and cancellation of stock awards | (8) | (8) | |||||||||||
Repurchase and cancellation of stock awards (in shares) | (343,712) | ||||||||||||
Contribution from noncontrolling interests | 2 | 2 | 2 | 2 | |||||||||
Dividends paid to noncontrolling interests | (3) | (3) | (3) | (3) | |||||||||
Stock options exercised | 30 | (13) | 17 | ||||||||||
Stock options exercised (in shares) | 967,397 | ||||||||||||
Dividends declared on common stock | (30) | (30) | |||||||||||
Balance at the end of the period at Mar. 31, 2017 | $ 3 | 3,504 | (150) | (29) | (300) | (1,576) | 197 | 1,649 | |||||
Balance (in shares) at Mar. 31, 2017 | 238,152,916 | ||||||||||||
Balance at the end of the period at Mar. 31, 2017 | $ 3,235 | (734) | (1,594) | 197 | 1,104 | ||||||||
Balance (in units) at Mar. 31, 2017 | 2,728 | ||||||||||||
Increase (Decrease) in Stockholders' Equity and Members' Equity | |||||||||||||
Cumulative effect of changes in fair value of equity investments | Asu 2016-01 | 10 | (10) | 10 | (10) | |||||||||
Revised beginning balance | $ 3 | 3,889 | (150) | (15) | 171 | (1,278) | 751 | 3,371 | |||||
Revised beginning balance | $ 3,616 | (260) | (1,273) | 751 | 2,834 | ||||||||
Balance at the beginning of the period at Dec. 31, 2017 | $ 3 | 3,889 | (150) | (15) | 161 | (1,268) | 751 | $ 3,371 | |||||
Balance (in shares) at Dec. 31, 2017 | 240,213,606 | 240,213,606 | |||||||||||
Balance at the beginning of the period at Dec. 31, 2017 | $ 3,616 | (270) | (1,263) | 751 | $ 2,834 | ||||||||
Balance (in units) at Dec. 31, 2017 | 2,728 | 2,728 | |||||||||||
Increase (Decrease) in Stockholders' Equity and Members' Equity | |||||||||||||
Net income | 271 | 76 | $ 347 | 274 | 76 | $ 350 | |||||||
Dividends paid to parent | (39) | (39) | |||||||||||
Other comprehensive income | 82 | 23 | 105 | 80 | 23 | 103 | |||||||
Contribution from parent | $ 7 | 7 | |||||||||||
Issuance of nonvested stock awards | 14 | (14) | |||||||||||
Vesting of stock awards | 11 | 11 | |||||||||||
Vesting of stock awards (in shares) | 985,493 | ||||||||||||
Recognition of stock-based compensation | 2 | 3 | 5 | ||||||||||
Repurchase and cancellation of stock awards | (11) | (11) | |||||||||||
Repurchase and cancellation of stock awards (in shares) | (253,345) | ||||||||||||
Dividends paid to noncontrolling interests | (18) | (18) | (18) | (18) | |||||||||
Stock options exercised | 7 | (2) | 5 | ||||||||||
Stock options exercised (in shares) | 571,417 | ||||||||||||
Treasury stock repurchased | (51) | $ (51) | |||||||||||
Treasury stock repurchased (in shares) | (1,685,300) | (1,685,300) | |||||||||||
Disposition of a portion of P and A Business | 18 | 18 | 18 | $ 18 | |||||||||
Costs of the IPO and secondary offering of the P&A Business | (2) | (2) | (2) | (2) | |||||||||
Noncontrolling interest from partial disposal of P&A Business | 27 | 27 | 27 | 27 | |||||||||
Dividends declared on common stock | (39) | (39) | |||||||||||
Balance at the end of the period at Mar. 31, 2018 | $ 3 | $ 3,939 | $ (201) | $ (26) | $ 393 | $ (1,198) | $ 859 | $ 3,769 | |||||
Balance (in shares) at Mar. 31, 2018 | 239,831,871 | 239,831,871 | |||||||||||
Balance at the end of the period at Mar. 31, 2018 | $ 3,639 | $ (28) | $ (1,191) | $ 859 | $ 3,279 | ||||||||
Balance (in units) at Mar. 31, 2018 | 2,728 | 2,728 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Activities: | ||
Net income | $ 350 | $ 92 |
Less: (Income) loss from discontinued operations, net of tax | (114) | 7 |
Income from continuing operations | 236 | 99 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities from continuing operations: | ||
Equity in income of investment in unconsolidated affiliates | (13) | |
Depreciation and amortization | 82 | 76 |
Loss on disposal of businesses/assets, net | 2 | |
Noncash interest expense | 4 | |
Noncash restructuring and impairment charges | 2 | |
Deferred income taxes | 2 | 8 |
Noncash loss (gain) on foreign currency transactions | 5 | (4) |
Stock-based compensation | 8 | 9 |
Other, net | (12) | |
Changes in operating assets and liabilities | ||
Accounts and notes receivable | (104) | (55) |
Inventories | (105) | (109) |
Prepaid expenses | (8) | (2) |
Other current assets | 15 | (14) |
Other noncurrent assets | 1 | (7) |
Accounts payable | 36 | 83 |
Accrued liabilities | (42) | (16) |
Other noncurrent liabilities | (6) | 10 |
Net cash provided by operating activities from continuing operations | 111 | 70 |
Net cash provided by operating activities from discontinued operations | 52 | 23 |
Net cash provided by operating activities | 163 | 93 |
Investing Activities: | ||
Capital expenditures | (55) | (51) |
Acquisition of a business, net of cash acquired | (14) | |
Other, net | 4 | |
Net cash used in investing activities from continuing operations | (69) | (47) |
Net cash (used in) provided by investing activities from discontinued operations | (67) | 24 |
Net cash used in investing activities | (136) | (23) |
Financing Activities: | ||
Net repayments on overdraft facilities | (1) | |
Repayments of short-term debt | (2) | (6) |
Borrowings on short-term debt | 2 | 2 |
Repayments of long-term debt | (4) | (7) |
Proceeds from issuance of long-term debt | 8 | |
Repayments of notes payable | (9) | (5) |
Dividends paid to noncontrolling interests | (18) | (3) |
Contribution from noncontrolling interests | 2 | |
Dividends paid to common stockholders | (39) | (30) |
Repurchase and cancellation of stock awards | (11) | (8) |
Proceeds from issuance of common stock | 5 | 17 |
Repurchase of common stock | (51) | |
Proceeds from the secondary offering of P&A Business | 44 | |
Cash paid for expenses of the offering of P&A Business | (2) | |
Other, net | (1) | |
Net cash used in financing activities | (86) | (31) |
Effect of exchange rate changes on cash | 16 | 5 |
(Decrease) increase in cash, cash equivalents and restricted cash | (43) | 44 |
Cash and cash equivalents from continuing operations at beginning of period | 481 | 396 |
Cash and cash equivalents from discontinued operations at beginning of period | 238 | 29 |
Cash and cash equivalents at end of period | 676 | 469 |
Supplemental cash flow information: | ||
Cash paid for interest | 31 | 36 |
Cash paid for income taxes | 41 | 8 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Operating Activities: | ||
Net income | 347 | 91 |
Less: (Income) loss from discontinued operations, net of tax | (114) | 8 |
Income from continuing operations | 233 | 99 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities from continuing operations: | ||
Equity in income of investment in unconsolidated affiliates | (13) | |
Depreciation and amortization | 81 | 74 |
Loss on disposal of businesses/assets, net | 2 | |
Noncash interest expense | 5 | 7 |
Noncash restructuring and impairment charges | 2 | |
Deferred income taxes | 2 | 8 |
Noncash loss (gain) on foreign currency transactions | 5 | (4) |
Noncash compensation | 7 | 8 |
Other, net | (11) | |
Changes in operating assets and liabilities | ||
Accounts and notes receivable | (105) | (55) |
Inventories | (105) | (109) |
Prepaid expenses | (8) | (2) |
Other current assets | 14 | (14) |
Other noncurrent assets | 1 | (7) |
Accounts payable | 31 | 80 |
Accrued liabilities | (42) | (17) |
Other noncurrent liabilities | (5) | 11 |
Net cash provided by operating activities from continuing operations | 105 | 68 |
Net cash provided by operating activities from discontinued operations | 52 | 22 |
Net cash provided by operating activities | 157 | 90 |
Investing Activities: | ||
Capital expenditures | (55) | (51) |
Acquisition of a business, net of cash acquired | (14) | |
Increase in receivable in affiliate | (9) | (7) |
Other, net | 5 | |
Net cash used in investing activities from continuing operations | (78) | (53) |
Net cash (used in) provided by investing activities from discontinued operations | (67) | 24 |
Net cash used in investing activities | (145) | (29) |
Financing Activities: | ||
Net repayments on overdraft facilities | (1) | |
Repayments of short-term debt | (2) | (6) |
Borrowings on short-term debt | 2 | 2 |
Repayments of long-term debt | (4) | (7) |
Proceeds from issuance of long-term debt | 8 | |
Repayments of notes payable to affiliate | (40) | (5) |
Proceeds from issuance of notes payable to affiliate | 15 | |
Repayments of notes payable | (9) | |
Dividends paid to noncontrolling interests | (18) | (3) |
Contribution from noncontrolling interests | 2 | |
Dividends paid to parent | (39) | (30) |
Proceeds from the secondary offering of P&A Business | 44 | |
Cash paid for expenses of the offering of P&A Business | (2) | |
Net cash used in financing activities | (69) | (24) |
Effect of exchange rate changes on cash | 16 | 5 |
(Decrease) increase in cash, cash equivalents and restricted cash | (41) | 42 |
Cash and cash equivalents from continuing operations at beginning of period | 479 | 395 |
Cash and cash equivalents from discontinued operations at beginning of period | 238 | 29 |
Cash and cash equivalents at end of period | 676 | 466 |
Supplemental cash flow information: | ||
Cash paid for interest | 31 | 36 |
Cash paid for income taxes | $ 41 | $ 8 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Capital expenditures in accounts payable | $ 32 | $ 47 |
Cash paid for income taxes by P and A Business after IPO date | 19 | 15 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Capital expenditures in accounts payable | 32 | 47 |
Stock-based compensation | 7 | 8 |
Cash paid for income taxes by P and A Business after IPO date | $ 19 | $ 15 |
GENERAL
GENERAL | 3 Months Ended |
Mar. 31, 2018 | |
GENERAL | |
GENERAL | 1. GENERAL Certain Definitions For convenience in this report, the terms “Company,” “Huntsman,” “our,” “us” or “we” may be used to refer to Huntsman Corporation and, unless the context otherwise requires, its subsidiaries and predecessors. In this report, “Huntsman International” refers to Huntsman International LLC (our wholly owned subsidiary). In this report, we may use, without definition, the common names of competitors or other industry participants. We may also use the common names or abbreviations for certain chemicals or products. Interim Financial Statements Our unaudited interim condensed consolidated financial statements and Huntsman International’s unaudited interim condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP” or “U.S. GAAP”) and in management’s opinion reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of results of operations, comprehensive income, financial position and cash flows for the periods presented. Results for interim periods are not necessarily indicative of those to be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes to consolidated financial statements included in the Annual Report on Form 10‑K for the year ended December 31, 2017 for our Company and Huntsman International. D escription of Business We are a global manufacturer of differentiated organic chemical products. Our products comprise a broad range of chemicals and formulations, which we market globally to a diversified group of consumer and industrial customers. Our products are used in a wide range of applications, including those in the adhesives, aerospace, automotive, construction products, personal care and hygiene, durable and non-durable consumer products, digital inks, electronics, medical, packaging, coatings and construction, power generation, refining, synthetic fiber, textile chemicals and dyes industries. We are a leading global producer in many of our key product lines, including MDI, amines, surfactants, maleic anhydride, epoxy-based polymer formulations, textile chemicals and dyes. We operate in four segments: Polyurethanes, Performance Products, Advanced Materials and Textile Effects. In August 2017, we separated our Titanium Dioxide and Performance Additives business (the “P&A Business”) through an initial public offering (“IPO”) of ordinary shares of Venator Materials PLC (“Venator”), formerly our wholly-owned subsidiary (the “Separation”). Beginning in the third quarter of 2017, we reported the results of the P&A Business as discontinued operations. See “Note 3. Discontinued Operations.” In a series of transactions beginning in 2006, we sold or shut down substantially all of our Australian styrenics operations and our North American polymers and base chemicals operations. We also report the results of these businesses as discontinued operations. C ompany Our Company, a Delaware corporation, was formed in 2004 to hold the Huntsman businesses. Jon M. Huntsman founded the predecessor to our Company in 1970 as a small packaging company. Since then, we have grown through a series of acquisitions and now own a global portfolio of businesses. Currently, we operate all of our businesses through Huntsman International, our wholly-owned subsidiary. Huntsman International is a Delaware limited liability company and was formed in 1999. Huntsman Corporation and Huntsman International Financial Statements Except where otherwise indicated, these notes relate to the condensed consolidated financial statements for both our Company and Huntsman International. The differences between our financial statements and Huntsman International’s financial statements relate primarily to the following: · purchase accounting recorded at our Company for the 2003 step‑acquisition of Huntsman International Holdings LLC, the former parent company of Huntsman International that was merged into Huntsman International in 2005; · the different capital structures; and · a note payable from Huntsman International to us. Principles of Consolidation Our condensed consolidated financial statements include the accounts of our wholly‑owned and majority‑owned subsidiaries and any variable interest entities for which we are the primary beneficiary. Intercompany accounts and transactions have been eliminated. Reclassifications Certain amounts in the consolidated financial statements for prior periods have been reclassified to conform with the current presentation. These reclassifications presented the other components of net periodic pension cost and net periodic postretirement cost within other nonoperating income in accordance with Accounting Standards Update (“ASU”) No. 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . We previously presented these amounts within cost of goods sold and selling, general and administrative expenses. See “Note 2. Recently Issued Pronouncements.” Recent Developments Demilec Acquisition On April 23, 2018, we acquired Demilec (USA) Inc. and Demilec Inc. (collectively, “Demilec”) for approximately $350 million, subject to customary working capital adjustments, in an all-cash transaction (“Demilec Acquisition”), which was funded from our revolving facility (“Revolving Facility”) and our U.S. accounts receivable securitization program (“U.S. A/R Program”). Demilec is a leading North American manufacturer and distributor of spray polyurethane foam formulations for residential and commercial applications. The acquired business will be integrated into our Polyurethanes segment. The Demilec Acquisition is aligned with our Company’s stated strategy to grow its downstream polyurethanes business and leverage its global platform to expand Demilec’s portfolio of spray polyurethane foam formulations into international markets. The preliminary purchase price allocation is in its early stages, and all items are pending valuation. Share Repurchase Program On February 7, 2018, our Board of Directors authorized our Company to repurchase up to an additional $400 million in shares of our common stock in addition to the $50 million remaining under our September 2015 share repurchase authorization. During the three months ended March 31, 2018, we repurchased 1,685,300 shares of our common stock for approximately $51 million under the repurchase program. From April 1, 2018 through April 19, 2018, we repurchased an additional 1,822,315 shares of our common stock for approximately $52 million. See “Note 12. Huntsman Corporation Stockholders’ Equity.” Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
RECENTLY ISSUED ACCOUNTING PRON
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2018 | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 2. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Accounting Pronouncements Adopted During 2018 In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014‑09, Revenue from Contracts with Customers (Topic 606) , outlining a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers and supersedes most current revenue recognition guidance. In March 2016, the FASB issued ASU No. 2016‑08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , clarifying the implementation guidance on principal versus agent considerations, in April 2016, the FASB issued ASU No. 2016‑10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , clarifying the implementation guidance on identifying performance obligations in a contract and determining whether an entity’s promise to grant a license provides a customer with either a right to use the entity’s intellectual property (which is satisfied at a point in time) or a right to access the entity’s intellectual property (which is satisfied over time), in May 2016, the FASB issued ASU No. 2016‑12, Revenue from Customers (Topic 606): Narrow‑Scope Improvements and Practical Expedients , providing clarifications and practical expedients for certain narrow aspects in Topic 606, and in December 2016, the FASB issued ASU 2016‑20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers . The amendments in these ASUs are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The amendments in ASU No. 2014‑09, ASU No. 2016‑08, ASU No. 2016‑10, ASU No. 2016‑12 and ASU No. 2016‑20 should be applied retrospectively. On January 1, 2018, we adopted the amendments in ASU No. 2014‑09, ASU No. 2016‑08, ASU No. 2016‑10, ASU No. 2016‑12 and ASU No. 2016‑20 to all current revenue contracts using the modified retrospective approach, and the initial adoption of these amendments did not have an impact on our condensed consolidated financial statements. As a result of the adoption of these amendments, we revised our accounting policy for revenue recognition as detailed in “Note 10. Revenue Recognition,” and, except for the changes noted in “Note 10. Revenue Recognition,” no material changes have been made to our significant accounting policies disclosed in “Note 2. Summary of Significant Accounting Policies” of our Annual Report on Form 10-K, filed on February 23, 2018, for the year ended December 31, 2017. In January 2016, the FASB issued ASU No. 2016‑01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities . The amendments in this ASU require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The amendments allow equity investments that do not have readily determinable fair values to be remeasured at fair value either upon the occurrence of an observable price change or upon identification of an impairment. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. An entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. On January 1, 2018, we adopted the amendments in ASU No. 2016‑01 and upon transition recorded a cumulative-effect adjustment of approximately $10 million, net of tax, relating to prior years’ changes in fair value of equity investments from other comprehensive income to retained earnings. Beginning in the first quarter of 2018, we also started recognizing the current period change in fair value of equity investments in net income. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . The amendments in this ASU clarify and include specific guidance to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The amendments in this ASU should be applied using a retrospective transition method to each period presented. We adopted the amendments in this ASU effective January 1, 2018, and the initial adoption of the amendments in this ASU did not have a significant impact on our condensed consolidated financial statements. In November 2016, the FASB issued ASU No. 2016‑18, Statement of Cash Flows (Topic 230): Restricted Cash . The amendments in this ASU require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning‑of‑period and end‑of‑period total amounts shown on the statement of cash flows. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, and interim period within those fiscal years. The amendments in this ASU were applied using a retrospective transition method to each period presented. We adopted the amendments in this ASU effective January 1, 2018, and the initial adoption of the amendments in this ASU did not have a significant impact on our condensed consolidated financial statements. In January 2017, the FASB issued ASU No. 2017‑01, Business Combinations (Topic 805): Clarifying the Definition of a Business . The amendments in this ASU clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The amendments in this ASU should be applied prospectively on or after the effective date. No disclosures are required at transition. We adopted the amendments in this ASU effective January 1, 2018, and the initial adoption of this ASU did not have a significant impact on our condensed consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . The amendments in this ASU require that an employer report the service cost component of net periodic pension cost and net periodic postretirement benefit cost in the same line items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside of income from operations. The amendments in this ASU also allow only the service cost component to be eligible for capitalization when applicable (for example, as a cost of internally manufactured inventory or a self-constructed asset). The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The amendments in this ASU should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit cost in assets. We adopted the amendments in this ASU effective January 1, 2018, which impacted the presentation of our condensed consolidated financial statements. Our previous presentation of service cost components was consistent with the amendments in this ASU. However, we now present the other components within other income, net, whereas we previously presented these within cost of goods sold and selling, general and administrative expenses. Accounting Pronouncements Pending Adoption in Future Periods In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The amendments in this ASU will increase transparency and comparability among entities by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in this ASU will require lessees to recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. In January 2018, the FASB issued ASU No. 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842 , providing an optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under the current leases guidance in Topic 840. The amendments in these ASUs are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early application of the amendments in these ASUs is permitted for all entities. Reporting entities are required to recognize and measure leases under these amendments at the beginning of the earliest period presented using a modified retrospective approach. We are currently evaluating the impact of the adoption of the amendments in this ASU on our condensed consolidated financial statements and believe, based on our preliminary assessment, that we will record significant additional right-to-use assets and lease obligations. In August 2017, the FASB issued ASU No. 2017‑12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The amendments in this ASU better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships as well as the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements to increase the understandability of the results of an entity’s intended hedging strategies. The amendments in this ASU also include certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted in any interim period after the issuance of this ASU. Transition requirements and elections should be applied to hedging relationships existing on the date of adoption. For cash flow and net investment hedges, an entity should apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness, and the amended presentation and disclosure guidance is required only prospectively. We do not expect the adoption of the amendments in this ASU to have a significant impact on our condensed consolidated financial statements. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 3 Months Ended |
Mar. 31, 2018 | |
DISCONTINUED OPERATIONS | |
DISCONTINUED OPERATIONS | 3. DISCONTINUED OPERATIONS In 2017, we separated the P&A Business and conducted both an IPO and a secondary offering of ordinary shares of Venator, formerly a wholly-owned subsidiary of Huntsman. On January 3, 2018, the underwriters purchased an additional 1,948,955 Venator ordinary shares pursuant to the exercise of the underwriters’ option to purchase additional shares. All of the ordinary shares offered in the IPO and the secondary offering were sold by Huntsman, and Venator did not receive any proceeds from the offerings. As of March 31, 2018, we retained approximately 53% ownership in Venator. We intend to monetize our retained ownership in Venator at prevailing market conditions and expect to conduct multiple follow-on capital market or block transactions to permit the orderly distribution of our retained shares. In August 2017, we entered into a separation agreement, a transition services agreement (“TSA”) and a registration rights agreement with Venator to effect the Separation and provide a framework for a short term set of transition services as well as a tax matters agreement and an employee matters agreement. Pursuant to the TSA, we will, for a limited time following the Separation, provide Venator with certain services and functions that the parties have historically shared. We may also provide Venator with additional services that Venator and Huntsman may identify from time to time in the future. In general, the services began following the Separation and cover a period not expected to exceed 24 months; however, Venator may terminate individual services provided by us under the TSA early, as it becomes able to operate its business without such services. The following table summarizes the major classes of assets and liabilities constituting assets and liabilities held for sale (dollars in millions): March 31, December 31, 2018 2017 Carrying amounts of major classes of assets held for sale: Accounts receivable $ 439 $ 380 Inventories 482 454 Other current assets 311 318 Property, plant and equipment, net 1,534 1,424 Deferred income taxes 153 158 Other noncurrent assets 141 146 Total assets held for sale $ 3,060 $ 2,880 Carrying amounts of major classes of liabilities in held for sale: Accounts payable $ 387 $ 385 Accrued liabilities 249 236 Other current liabilities 19 25 Long term debt 747 746 Other noncurrent liabilities 319 300 Total liabilities held for sale $ 1,721 $ 1,692 (1) The assets and liabilities held for sale are classified as current as of March 31, 2018 and December 31, 2017 because it is probable that the sale of our controlling financial interest in Venator ordinary shares will occur and proceeds will be collected within one year. The following table summarizes major classes of line items constituting pretax and after-tax income of discontinued operations (dollars in millions): Huntsman Corporation March 31, 2018 2017 Major classes of line items constituting pretax income (loss) of discontinued operations: Trade sales, services and fees, net $ 627 $ 543 Cost of goods sold 476 470 Selling, general and administrative 51 40 Restructuring, impairment and plant closing costs 9 27 Business separation expenses — 9 Interest expense 9 — Other operating income, net (50) — Other (income) loss, net (2) 1 Income (loss) from discontinued operations before income taxes 134 (4) Income tax expense (20) (3) Income (loss) from discontinued operations, net of tax 114 (7) Net income attributable to noncontrolling interests (2) (3) Net income (loss) attributable to discontinued operations $ 112 $ (10) Huntsman International March 31, 2018 2017 Major classes of line items constituting pretax income (loss) of discontinued operations: Trade sales, services and fees, net $ 627 $ 543 Cost of goods sold 476 471 Selling, general and administrative 51 40 Restructuring, impairment and plant closing costs 9 27 Business separation expenses — 9 Interest expense 9 — Other operating income, net (50) — Other (income) loss, net (2) 1 Income (loss) from discontinued operations before income taxes 134 (5) Income tax expense (20) (3) Income (loss) from discontinued operations, net of tax 114 (8) Net income attributable to noncontrolling interests (2) (3) Net income (loss) attributable to discontinued operations $ 112 $ (11) |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2018 | |
INVENTORIES | |
INVENTORIES | 4. INVENTORIES Inventories are stated at the lower of cost or market, with cost determined using LIFO, first-in first-out, and average cost methods for different components of inventory. Inventories consisted of the following (dollars in millions): March 31, December 31, 2018 2017 Raw materials and supplies $ 240 $ 189 Work in progress 50 48 Finished goods 972 897 Total 1,262 1,134 LIFO reserves (59) (61) Net inventories $ 1,203 $ 1,073 For both March 31, 2018 and December 31, 2017, approximately 13% and 12% of inventories were recorded using the LIFO cost method, respectively. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 3 Months Ended |
Mar. 31, 2018 | |
VARIABLE INTEREST ENTITIES | |
VARIABLE INTEREST ENTITIES | 5. VARIABLE INTEREST ENTITIES We evaluate our investments and transactions to identify variable interest entities for which we are the primary beneficiary. We hold a variable interest in the following joint ventures for which we are the primary beneficiary: · Rubicon LLC is our 50%-owned joint venture with Lanxess that manufactures products for our Polyurethanes and Performance Products segments. The structure of the joint venture is such that the total equity investment at risk is not sufficient to permit the joint venture to finance its activities without additional financial support. By virtue of the operating agreement with this joint venture, we purchase a majority of the output, absorb a majority of the operating costs and provide a majority of the additional funding. · Arabian Amines Company is our 50%-owned joint venture with Zamil group that manufactures products for our Performance Products segment. As required in the operating agreement governing this joint venture, we purchase all of Arabian Amines Company’s production and sell it to our customers. Substantially all of the joint venture’s activities are conducted on our behalf. · Sasol‑Huntsman is our 50%-owned joint venture with Sasol that owns and operates a maleic anhydride facility in Moers, Germany. This joint venture manufactures products for our Performance Products segment. The joint venture uses our technology and expertise, and at the time of the last reconsideration event, we took on a disproportionate amount of risk of loss due to a related‑party loan to Sasol‑Huntsman for which we assumed the default risk. Creditors of these entities have no recourse to our general credit. See “Note 7. Debt—Direct and Subsidiary Debt.” As the primary beneficiary of these variable interest entities at March 31, 2018, the joint ventures’ assets, liabilities and results of operations are included in our condensed consolidated financial statements. The following table summarizes the carrying amount of our variable interest entities’ assets and liabilities included in our condensed consolidated balance sheet as of March 31, 2018 and our consolidated balance sheet as of December 31, 2017 (dollars in millions): March 31, December 31, 2018 2017 Current assets $ 120 $ 114 Property, plant and equipment, net 265 283 Other noncurrent assets 134 116 Deferred income taxes 33 33 Intangible assets 10 10 Goodwill 15 14 Total assets $ 577 $ 570 Current liabilities $ 144 $ 163 Long-term debt 83 86 Deferred income taxes 13 12 Other noncurrent liabilities 99 98 Total liabilities $ 339 $ 359 The revenues, income from continuing operations before income taxes and net cash provided by operating activities for our variable interest entities for the three months ended March 31, 2018 and 2017 are as follows (dollars in millions): Three months ended March 31, 2018 2017 Revenues $ 37 $ 31 Income from continuing operations before income taxes 9 4 Net cash provided by operating activities 15 12 |
RESTRUCTURING, IMPAIRMENT AND P
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS | 3 Months Ended |
Mar. 31, 2018 | |
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS | |
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS | 6. RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS As of March 31, 2018 and December 31, 2017, accrued restructuring costs of continuing operations by type of cost and initiative consisted of the following (dollars in millions): Non-cancelable Other Workforce Demolition and lease and contract restructuring reductions(1) decommissioning termination costs costs Total(2) Accrued liabilities as of January 1, 2018 $ 5 $ 2 $ 41 $ 5 $ 53 2018 credits for 2017 and prior initiatives — — — (5) (5) 2018 charges for 2018 initiatives — — — 5 5 2018 (credits) payments for 2017 and prior initiatives (1) (1) (1) 5 2 2018 payments for 2018 initiatives — — — (1) (1) Foreign currency effect on liability balance 1 — 2 — 3 Accrued liabilities as of March 31, 2018 $ 5 $ 1 $ 42 $ 9 $ 57 (1) The workforce reduction reserves relate to the termination of 125 positions, of which 81 positions had not been terminated as of March 31, 2018. (2) Accrued liabilities by initiatives were as follows (dollars in millions): March 31, December 31, 2018 2017 2016 and prior initiatives $ 51 $ 51 2017 initiatives 2 2 2018 initiatives 4 — Total $ 57 $ 53 Details with respect to our reserves for restructuring, impairment and plant closing costs are provided below by segment and initiative (dollars in millions): Performance Advanced Textile Corporate Polyurethanes Products Materials Effects and other Total Accrued liabilities as of January 1, 2018 $ 1 $ 1 $ 3 $ 47 $ 1 $ 53 2018 credits for 2017 and prior initiatives — — — (5) — (5) 2018 charges for 2018 initiatives — — — — 5 5 2018 (credits) payments for 2017 and prior initiatives (1) — — 3 — 2 2018 payments for 2018 initiatives — — — — (1) (1) Foreign currency effect on liability balance — — 1 2 — 3 Accrued liabilities as of March 31, 2018 $ — $ 1 $ 4 47 $ 5 $ 57 Current portion of restructuring reserves $ — $ 1 $ 1 $ 7 $ 5 $ 14 Long-term portion of restructuring reserves — — 3 40 — 43 Details with respect to cash and noncash restructuring charges from continuing operations for the three months ended March 31, 2018 and 2017 by initiative are provided below (dollars in millions): Three months ended March 31, 2018 Cash charges: 2018 credits for 2017 and prior initiatives $ (5) 2018 charges for 2018 initiatives 5 Pension-related charges — Noncash charges: Accelerated depreciation — Other noncash credits 2 Total 2018 Restructuring, Impairment and Plant Closing Costs $ 2 Three months ended March 31, 2017 Cash charges: 2017 charges for 2016 and prior initiatives $ 3 2017 charges for 2017 initiatives 6 Noncash charges: Accelerated depreciation 1 Other noncash credits (1) Total 2017 Restructuring, Impairment and Plant Closing Costs $ 9 2018 Restructuring Activities In September 2011, we implemented a significant restructuring of our Textile Effects segment, including the closure of our production facilities and business support offices in Basel, Switzerland. In connection with this restructuring plan, during the three months ended March 31, 2018, our Textile Effects segment recorded a credit of $5 million related to an installment payment for the sale of land at the Basel, Switzerland site. 2017 Restructuring Activities In connection with the Textile Effects Restructuring Plan, we recorded restructuring expense of $6 million in the three months ended March 31, 2017 related primarily to workforce reductions. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2018 | |
DEBT | |
DEBT | 7. DEBT Outstanding debt, net of debt issuance costs, consisted of the following (dollars in millions): Huntsman Corporation March 31, December 31, 2018 2017 Senior Credit Facilities: Revolving facility $ — $ — Amounts outstanding under A/R programs 184 180 Senior notes 1,964 1,927 Variable interest entities 105 107 Other 81 84 Total debt $ 2,334 $ 2,298 Total current portion of debt $ 36 $ 40 Long-term portion of debt 2,298 2,258 Total debt $ 2,334 $ 2,298 Huntsman International March 31, December 31, 2018 2017 Senior Credit Facilities: Revolving facility $ — $ — Amounts outstanding under A/R programs 184 180 Senior notes 1,964 1,927 Variable interest entities 105 107 Other 81 84 Total debt, excluding debt to affiliates $ 2,334 $ 2,298 Total current portion of debt $ 36 $ 40 Long-term portion of debt 2,298 2,258 Total debt, excluding debt to affiliates $ 2,334 $ 2,298 Total debt, excluding debt to affiliates $ 2,334 $ 2,298 Notes payable to affiliates-current 100 100 Notes payable to affiliates-noncurrent 702 742 Total debt $ 3,136 $ 3,140 Direct and Subsidiary Debt Huntsman Corporation’s direct debt and guarantee obligations consist of a guarantee of certain indebtedness incurred from time to time to finance certain insurance premiums. Substantially all of our other debt, including the facilities described below, has been incurred by our subsidiaries (primarily Huntsman International). Huntsman Corporation is not a guarantor of such subsidiary debt. Certain of our subsidiaries are designated as nonguarantor subsidiaries (“Nonguarantors”) and have third‑party debt agreements. These debt agreements contain certain restrictions with regard to dividends, distributions, loans or advances. In certain circumstances, the consent of a third party would be required prior to the transfer of any cash or assets from these subsidiaries to us. Debt Issuance Costs We record debt issuance costs related to a debt liability on the balance sheet as a reduction to the face amount of that debt liability. As of March 31, 2018 and December 31, 2017, the amount of debt issuance costs directly reducing the debt liability was $10 million and $11 million, respectively. We record the amortization of debt issuance costs as interest expense. Senior Credit Facilities As of March 31, 2018, our senior credit facilities (“Senior Credit Facilities”) consisted of our Revolving Facility as follows (dollars in millions): Unamortized Discounts and Committed Principal Debt Issuance Carrying Facility Amount Outstanding Costs Value Interest Rate(2) Maturity Revolving Facility $ 650 $ — $ — $ — USD LIBOR plus 2.50% (1) We had no borrowings outstanding under our Revolving Facility; we had approximately $9 million (U.S. dollar equivalents) of letters of credit and bank guarantees issued and outstanding under our Revolving Facility. (2) The applicable interest rate of the Revolving Facility is subject to certain secured leverage ratio thresholds. Our obligations under the Senior Credit Facilities are guaranteed by substantially all of our domestic subsidiaries (collectively, the “Guarantors”), and are secured by a first priority lien on substantially all of our domestic property, plant and equipment (other than property, plant and equipment held by Venator and its subsidiaries), the stock of all of our material domestic subsidiaries (other than Venator and its subsidiaries) and certain foreign subsidiaries, and pledges of intercompany notes between certain of our subsidiaries. In connection with the Demilec Acquisition on April 23, 2018, we borrowed $275 million under the Revolving Facility and $75 million under our U.S. A/R Program. See “Note 1. General—Recent Developments—Demilec Acquisition.” A/R Programs Our U.S. A/R Program and our European accounts receivable securitization program (“EU A/R Program” and collectively with the U.S. A/R Program, “A/R Programs”) are structured so that we transfer certain of our trade receivables to the U.S. special purpose entity (“U.S. SPE”) and the European special purpose entity (“EU SPE”) in transactions intended to be true sales or true contributions. The receivables collateralize debt incurred by the U.S. SPE and the EU SPE. Information regarding our A/R Programs as of March 31, 2018 was as follows (monetary amounts in millions): Maximum Funding Amount Facility Maturity Availability(1) Outstanding Interest Rate(2) U.S. A/R Program April 2020 $ 250 $ 90 (3) Applicable rate plus 0.95% EU A/R Program April 2020 € 150 € 76 Applicable rate plus 1.30% (approximately $186) (approximately $94) (1) The amount of actual availability under our A/R Programs may be lower based on the level of eligible receivables sold, changes in the credit ratings of our customers, customer concentration levels and certain characteristics of the accounts receivable being transferred, as defined in the applicable agreements. (2) The applicable rate for our U.S. A/R Program is defined by the lender as either USD LIBOR or CP rate. The applicable rate for our EU A/R Program is either GBP LIBOR, USD LIBOR or EURIBOR. In addition, the U.S. SPE and the EU SPE are obligated to pay unused commitment fees to the lenders based on the amount of each lender’s commitment. (3) As of March 31, 2018, we had approximately $5 million (U.S. dollar equivalents) of letters of credit issued and outstanding under our U.S. A/R Program. As of March 31, 2018 and December 31, 2017, $415 million and $334 million, respectively, of accounts receivable were pledged as collateral under our A/R Programs. Note Payable from Huntsman International to Huntsman Corporation As of March 31, 2018, we had a loan of $802 million to our subsidiary, Huntsman International (the “Intercompany Note”). The Intercompany Note is unsecured and $100 million of the outstanding amount is classified as current as of March 31, 2018 on our condensed consolidated balance sheets. As of March 31, 2018, under the terms of the Intercompany Note, Huntsman International promises to pay us interest on the unpaid principal amount at a rate per annum based on the previous monthly average borrowing rate obtained under our U.S. A/R Program, less 10 basis points (provided that the rate shall not exceed an amount that is 25 basis points less than the monthly average borrowing rate obtained for the U.S. LIBOR-based borrowings under our Revolving Facility). Compliance with Covenants We believe that we are in compliance with the covenants contained in the agreements governing our material debt instruments, including our Senior Credit Facilities, our A/R Programs and our notes. Our material financing arrangements contain certain covenants with which we must comply. A failure to comply with a covenant could result in a default under a financing arrangement unless we obtained an appropriate waiver or forbearance (as to which we can provide no assurance). A default under these material financing arrangements generally allows debt holders the option to declare the underlying debt obligations immediately due and payable. Furthermore, certain of our material financing arrangements contain cross-default and cross-acceleration provisions under which a failure to comply with the covenants in one financing arrangement may result in an event of default under another financing arrangement. Our Senior Credit Facilities are subject to a single financial covenant (the “Leverage Covenant”), which applies only to the Revolving Facility and is calculated at the Huntsman International level. The Leverage Covenant is applicable only if borrowings, letters of credit or guarantees are outstanding under the Revolving Facility (cash collateralized letters of credit or guarantees are not deemed outstanding). The Leverage Covenant is a net senior secured leverage ratio covenant, which requires that Huntsman International’s ratio of senior secured debt to EBITDA (as defined in the applicable agreement) is not more than 3.75 to 1. If Huntsman International fails to comply with the Leverage Covenant, then we may not have access to liquidity under our Revolving Facility. If Huntsman International fails to comply with the Leverage Covenant at a time when we have uncollateralized loans or letters of credit outstanding under the Revolving Facility, Huntsman International would be in default under the Senior Credit Facilities, and, unless Huntsman International obtained a waiver or forbearance with respect to such default (as to which we can provide no assurance), Huntsman International could be required to pay off the balance of the Senior Credit Facilities in full, and we may not have further access to such facilities. The agreements governing our A/R Programs also contain certain receivable performance metrics. Any material failure to meet the applicable A/R Programs’ metrics could lead to an early termination event under the A/R Programs, which could require us to cease our use of such facilities, prohibiting us from additional borrowings against our receivables or, at the discretion of the lenders, requiring that we repay the A/R Programs in full. An early termination event under the A/R Programs would also constitute an event of default under our Senior Credit Facilities, which could require us to pay off the balance of the Senior Credit Facilities in full and could result in the loss of our Senior Credit Facilities. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 3 Months Ended |
Mar. 31, 2018 | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 8. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES We are exposed to market risks, such as changes in interest rates, foreign exchange rates and commodity pricing risks. From time to time, we enter into transactions, including transactions involving derivative instruments, to manage certain of these exposures. All derivatives, whether designated as hedging relationships or not, are recorded on our balance sheet at fair value. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and the hedged items are recognized in earnings. If the derivative is designated as a cash flow hedge, changes in the fair value of the derivative are recorded in accumulated other comprehensive loss, to the extent effective, and will be recognized in the income statement when the hedged item affects earnings. To the extent applicable, we perform effectiveness assessments in order to use hedge accounting at each reporting period. For a derivative that does not qualify as a hedge, changes in fair value are recognized in earnings. We also hedge our net investment in certain European operations. Changes in the fair value of the hedge in the net investment of certain European operations are recorded as an unrealized currency translation adjustment in accumulated other comprehensive loss. Our revenues and expenses are denominated in various foreign currencies, and our cash flows and earnings are thus subject to fluctuations due to exchange rate variations. From time to time, we may enter into foreign currency derivative instruments to minimize the short-term impact of movements in foreign currency rates. Where practicable, we generally net multicurrency cash balances among our subsidiaries to help reduce exposure to foreign currency exchange rates. Certain other exposures may be managed from time to time through financial market transactions, principally through the purchase of spot or forward foreign exchange contracts (generally with maturities of one year or less). We do not hedge our foreign currency exposures in a manner that would eliminate the effect of changes in exchange rates on our cash flows and earnings. As of March 31, 2018, we had approximately $126 million in notional amount (in U.S. dollar equivalents) outstanding in forward foreign currency contracts. From time to time, we may purchase interest rate swaps and/or other derivative instruments to reduce the impact of changes in interest rates on our floating-rate long-term debt. Under interest rate swaps, we agree with other parties to exchange, at specified intervals, the difference between fixed-rate and floating-rate interest amounts calculated by reference to an agreed notional principal amount. Beginning in 2009, Arabian Amines Company entered into a 12-year floating to fixed interest rate contract providing for a receipt of LIBOR interest payments for a fixed payment of 5.02%. In connection with the consolidation of Arabian Amines Company as of July 1, 2010, the interest rate contract is included in our consolidated results. See “Note 5. Variable Interest Entities.” The notional amount of the swap as of March 31, 2018 was $14 million, and the interest rate contract was not designated as a cash flow hedge. As of March 31, 2018, the fair value of the swap was $1 million and was recorded in noncurrent liabilities on our condensed consolidated balance sheets. For each of the three months ended March 31, 2018 and 2017, we recorded a reduction of interest expense of nil due to changes in fair value of the swap. In November 2014, we entered into two five year cross-currency interest rate contracts and one eight year cross-currency interest rate contract to swap an aggregate notional $200 million for an aggregate notional €161 million. This swap was designated as a hedge of net investment for financial reporting purposes. Under the cross-currency interest rate contract, we were to receive fixed U.S. dollar payments of $5 million semiannually on May 15 and November 15 (equivalent to an annual rate of 5.125%) and make interest payments of approximately €3 million (equivalent to an annual rate of approximately 3.6%). In August 2017, we terminated these cross-currency interest rate contracts and received $7 million from the counterparties. A portion of our debt is denominated in euros. We also finance certain of our non-U.S. subsidiaries with intercompany loans that are, in many cases, denominated in currencies other than the entities’ functional currency. We manage the net foreign currency exposure created by this debt through various means, including cross-currency swaps, the designation of certain intercompany loans as permanent loans because they are not expected to be repaid in the foreseeable future and the designation of certain debt and swaps as net investment hedges. Foreign currency transaction gains and losses on intercompany loans that are not designated as permanent loans are recorded in earnings. Foreign currency transaction gains and losses on intercompany loans that are designated as permanent loans are recorded in other comprehensive income on our condensed consolidated statements of comprehensive income. From time to time, we review such designation of intercompany loans. We review our non-U.S. dollar denominated debt and derivative instruments to determine the appropriate amounts designated as hedges. As of March 31, 2018, we have designated approximately €585 million (approximately $725 million) of euro-denominated debt as a hedge of our net investment. For the three months ended March 31, 2018, the amount of loss recognized on the hedge of our net investment was $24 million and was recorded in other comprehensive income (loss) on our condensed consolidated statements of comprehensive income. |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2018 | |
FAIR VALUE | |
FAIR VALUE | 9. FAIR VALUE The fair values of financial instruments were as follows (dollars in millions): March 31, 2018 December 31, 2017 Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value Non-qualified employee benefit plan investments $ 24 $ 24 $ 33 $ 33 Interest rate contracts (1) (1) (1) (1) Long-term debt (including current portion) (2,334) (2,483) (2,298) (2,483) The carrying amounts reported in our condensed consolidated balance sheets of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the immediate or short-term maturity of these financial instruments. The fair values of non-qualified employee benefit plan investments are obtained through market observable pricing using prevailing market prices. The estimated fair values of our long-term debt are based on quoted market prices for the identical liability when traded as an asset in an active market (Level 1). The fair value estimates presented herein are based on pertinent information available to management as of March 31, 2018 and December 31, 2017. The estimated fair value amounts have not been comprehensively revalued for purposes of these financial statements since March 31, 2018 and current estimates of fair value may differ significantly from the amounts presented herein. The following assets and liabilities are measured at fair value on a recurring basis (dollars in millions): Fair Value Amounts Using Quoted prices Significant other Significant in active markets observable unobservable March 31, for identical inputs inputs Description 2018 assets (Level 1)(2) (Level 2)(2) (Level 3) Assets: Equity securities: Non-qualified employee benefit plan investments $ 24 $ 24 $ — $ — Liabilities: Derivatives: Interest rate contracts(1) $ (1) $ — $ (1) $ — Fair Value Amounts Using Quoted prices Significant other Significant in active markets observable unobservable December 31, for identical inputs inputs Description 2017 assets (Level 1)(2) (Level 2)(2) (Level 3) Assets: Equity securities: Non-qualified employee benefit plan investments $ 33 $ 33 $ — $ — Liabilities: Derivatives: Interest rate contracts(1) $ (1) $ — $ (1) $ — (1) The income approach is used to calculate the fair value of these instruments. Fair value represents the present value of estimated future cash flows, calculated using relevant interest rates and yield curves at stated intervals. There were no material changes to the valuation method or assumptions used to determine the fair value during the current period. (2) There were no transfers between Levels 1 and 2 within the fair value hierarchy during the three months ended March 31, 2018 and the year ended December 31, 2017. The following table shows a reconciliation of beginning and ending balances for the three months ended March 31, 2017 for instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (dollars in millions). During the three months ended March 31, 2018, there were no instruments categorized as Level 3 within the fair value hierarchy. Cross-Currency Interest Rate Contracts Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Beginning balance $ 29 Transfers into Level 3 — Transfers out of Level 3 — Total (losses) gains: Included in earnings — Included in other comprehensive income (loss) — Purchases, sales, issuances and settlements — Ending balance, March 31, 2017 $ 29 The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets still held at March 31, 2017 $ — There were no gains or losses (realized and unrealized) included in earnings for instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3). We also have assets that under certain conditions are subject to measurement at fair value on a non‑recurring basis. These assets include property, plant and equipment and those associated with acquired businesses, including goodwill and intangible assets. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if one or more is determined to be impaired. During each of the three months ended March 31, 2018 and 2017, we recorded charges of nil for the impairment of long‑lived assets. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Mar. 31, 2018 | |
REVENUE RECOGNITION | |
REVENUE RECOGNITION | 10. REVENUE RECOGNITION We generate substantially all of our revenues through sales in the open market and long‑term supply agreements. We recognize revenue when control of the promised goods is transferred to our customers. Control of goods usually passes to the customer at the time shipment is made. Revenue is measured as the amount that reflects the consideration that we expect to be entitled to in exchange for those goods. Sales, value add, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Incidental items that are immaterial in the context of the contract are recognized as expense. We have elected to account for all shipping and handling activities as fulfillment costs. We have also elected to expense commissions when incurred as the amortization period of the commission asset that we would have otherwise recognized is less than one year. The following table disaggregates our revenue by major source for the three months ended March 31, 2018 (dollars in millions): Polyurethanes Performance Products Advanced Materials Textile Effects Eliminations Total Primary Geographic Markets U.S. and Canada $ 357 $ 343 $ 69 $ 17 $ (8) $ 778 Europe 340 108 118 35 (1) 600 Asia Pacific 299 110 68 114 — 591 Rest of world 226 42 24 34 — 326 $ 1,222 $ 603 $ 279 $ 200 $ (9) $ 2,295 Major Product Groupings MDI urethanes $ 1,085 $ 1,085 MTBE 137 137 Differentiated $ 539 539 Upstream 64 64 Specialty $ 236 236 Non-specialty 43 43 Textile chemicals and dyes and digital inks $ 200 200 Eliminations $ (9) (9) $ 1,222 $ 603 $ 279 $ 200 $ (9) $ 2,295 Substantially all of our revenue is generated through product sales in which revenue is recognized at a point in time. At contract inception, we assess the goods and services, if any, promised in our contracts and identify a performance obligation for each promise to transfer to the customer a good or service that is distinct. In substantially all cases, a contract has a single performance obligation to deliver a promised good to the customer. Revenue is recognized when control of the product is transferred to the customer (i.e., when our performance obligation is satisfied), which typically occurs at shipment. Further, in determining whether control has transferred, we consider if there is a present right to payment and legal title, along with risks and rewards of ownership having transferred to the customer. The amount of consideration we receive and revenue we recognize is based upon the terms stated in the sales contract, which may contain variable consideration such as discounts or rebates. We allocate the transaction price to each distinct product based on their relative standalone selling price. The product price as specified on the purchase order or in the sales contract is considered the standalone selling price as it is an observable input that depicts the price as if sold to a similar customer in similar circumstances. In order to estimate the applicable variable consideration, we use historical and current trend information to estimate the amount of discounts or rebates to which customers are likely to be entitled. Historically, actual discount or rebate adjustments relative to those estimated and included when determining the transaction price have not materially differed. Payment terms vary by business but are generally less than one year. As our standard payment terms are less than one year, we have elected to not assess whether a contract has a significant financing component. In the normal course of business, we do not accept product returns unless the item is defective as manufactured. We establish provisions for estimated returns based on an analysis of historical experience. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2018 | |
EMPLOYEE BENEFIT PLANS | |
EMPLOYEE BENEFIT PLANS | 11. EMPLOYEE BENEFIT PLANS Components of the net periodic benefit costs from continuing operations for the three months ended March 31, 2018 and 2017 were as follows (dollars in millions): Huntsman Corporation Other Postretirement Defined Benefit Plans Benefit Plans Three months Three months ended ended March 31, March 31, 2018 2017 2018 2017 Service cost $ 17 $ 15 $ 1 $ 1 Interest cost 20 20 1 1 Expected return on assets (43) (38) — — Amortization of prior service benefit (2) (2) (1) (2) Amortization of actuarial loss 18 18 — 1 Settlement loss 2 — — — Net periodic benefit cost $ 12 $ 13 $ 1 $ 1 Huntsman International Other Postretirement Defined Benefit Plans Benefit Plans Three months Three months ended ended March 31, March 31, 2018 2017 2018 2017 Service cost $ 17 $ 15 $ 1 $ 1 Interest cost 20 20 1 1 Expected return on assets (43) (38) — — Amortization of prior service benefit (2) (2) (1) (2) Amortization of actuarial loss 19 19 — 1 Settlement loss 2 — — — Net periodic benefit cost $ 13 $ 14 $ 1 $ 1 During the three months ended March 31, 2018 and 2017, we made contributions to our pension and other postretirement benefit plans related to continuing operations of $25 million and $11 million, respectively. During the remainder of 2018, we expect to contribute an additional amount of approximately $73 million to these plans. |
HUNTSMAN CORPORATION STOCKHOLDE
HUNTSMAN CORPORATION STOCKHOLDERS’ EQUITY | 3 Months Ended |
Mar. 31, 2018 | |
HUNTSMAN CORPORATION STOCKHOLDERS’ EQUITY | |
HUNTSMAN CORPORATION STOCKHOLDERS’ EQUITY | 12. HUNTSMAN CORPORATION STOCKHOLDERS’ EQUITY Share Repurchase Program On February 7, 2018, our Board of Directors authorized our Company to repurchase up to an additional $400 million in shares of our common stock in addition to the $50 million remaining under our September 2015 share repurchase authorization. Repurchases may be made through the open market or in privately negotiated transactions, and repurchases may be commenced or suspended from time to time without prior notice. Shares of common stock acquired through the repurchase program are held in treasury at cost. During the three months ended March 31, 2018, we repurchased 1,685,300 shares of our common stock for approximately $51 million under the repurchase program. From April 1, 2018 through April 19, 2018, we repurchased an additional 1,822,315 shares of our common stock for approximately $52. Dividends on Common Stock During the quarter ended March 31, 2018 we paid dividends of $39 million, or $0.1625 per share, and during the quarter ended March 31, 2017, we paid dividends of $30 million, or $0.125 per share, to common stockholders. |
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME | 3 Months Ended |
Mar. 31, 2018 | |
OTHER COMPREHENSIVE INCOME | |
OTHER COMPREHENSIVE INCOME | 13. OTHER COMPREHENSIVE INCOME The components of other comprehensive income (loss) and changes in accumulated other comprehensive loss by component were as follows (dollars in millions): Huntsman Corporation Pension and Other Foreign other comprehensive Amounts Amounts currency postretirement income of attributable to attributable to translation benefits unconsolidated noncontrolling Huntsman adjustment(a) adjustments(b) affiliates Other, net Total interests Corporation Beginning balance, January 1, 2018 $ (249) $ (1,189) $ 3 $ 24 $ (1,411) $ 143 $ (1,268) Cumulative effect of changes in fair value of equity investments — — — (10) (10) — (10) Revised beginning balance, January 1, 2018 (249) (1,189) 3 14 (1,421) 143 (1,278) Other comprehensive income (loss) before reclassifications, gross 83 (2) — — 81 (7) 74 Tax benefit (expense) 4 — — (3) 1 — 1 Amounts reclassified from accumulated other comprehensive loss, gross(c) — 22 — — 22 — 22 Tax benefit (expense) — 5 — (6) (1) — (1) Net current-period other comprehensive income (loss) 87 25 — (9) 103 (7) 96 Disposition of a portion of P&A Business — — — — — (16) (16) Ending balance, March 31, 2018 $ (162) $ (1,164) $ 3 $ 5 $ (1,318) $ 120 $ (1,198) (a) Amounts are net of tax of $61 and $65 as of March 31, 2018 and January 1, 2018, respectively. (b) Amounts are net of tax of $177 and $172 as of March 31, 2018 and January 1, 2018, respectively. (c) See table below for details about these reclassifications. Pension and Other Foreign other comprehensive Amounts Amounts currency postretirement income of attributable to attributable to translation benefits unconsolidated noncontrolling Huntsman adjustment(a) adjustments(b) affiliates Other, net Total interests Corporation Beginning balance, January 1, 2017 $ (459) $ (1,275) $ 4 $ 23 $ (1,707) $ 36 $ (1,671) Other comprehensive income before reclassifications, gross 74 — — 2 76 (2) 74 Tax benefit 3 — — — 3 — 3 Amounts reclassified from accumulated other comprehensive loss, gross(c) — 19 — — 19 — 19 Tax expense — (1) — — (1) — (1) Net current-period other comprehensive income 77 18 — 2 97 (2) 95 Ending balance, March 31, 2017 $ (382) $ (1,257) $ 4 $ 25 $ (1,610) $ 34 $ (1,576) (a) (b) (c) Three months ended March 31, 2018 2017 Amounts reclassified Amounts reclassified Affected line item in from accumulated from accumulated the statement Details about Accumulated Other other other where net income Comprehensive Loss Components(a): comprehensive loss comprehensive loss is presented Amortization of pension and other postretirement benefits: Prior service credit $ (3) $ (4) (b) Settlement loss 2 — (b) Actuarial loss 23 23 (b)(c) 22 19 Total before tax 5 (1) Income tax benefit (expense) Total reclassifications for the period $ 27 $ 18 Net of tax (a) Pension and other postretirement benefits amounts in parentheses indicate credits on our condensed consolidated statements of operations. (b) These accumulated other comprehensive loss components are included in the computation of net periodic pension costs. See “Note 11. Employee Benefit Plans.” (c) Amounts contain approximately $4 and $5 of actuarial losses related to discontinued operations for the three months ended March 31, 2018 and 2017. Huntsman International Foreign Pension Other Other, net Total Amounts Amounts Beginning balance, January 1, 2018 $ (252) $ (1,174) $ 3 $ 17 $ (1,406) $ 143 $ (1,263) Cumulative effect of changes in fair value of equity investments — — — (10) (10) — (10) Revised beginning balance, January 1, 2018 (252) (1,174) 3 7 (1,416) 143 (1,273) Other comprehensive income (loss) before reclassifications, gross 81 (2) 1 — 80 (7) 73 Tax benefit (expense) 4 — — (1) 3 — 3 Amounts reclassified from accumulated other comprehensive loss, gross(c) — 22 — — 22 — 22 Tax expense — 5 — (5) — — — Net current-period other comprehensive income (loss) 85 25 1 (6) 105 (7) 98 Disposition of a portion of P&A Business — — — — — (16) (16) Ending balance, March 31, 2018 $ (167) $ (1,149) $ 4 $ 1 $ (1,311) $ 120 $ (1,191) (a) Amounts are net of tax of $48 and $51 as of March 31, 2018 and January 1, 2018, respectively. (b) Amounts are net of tax of $204 and $199 as of March 31, 2018 and January 1, 2018, respectively. (c) See table below for details about these reclassifications. Foreign Pension Other Other, net Total Amounts Amounts Beginning balance, January 1, 2017 $ (462) $ (1,286) $ 4 $ 17 $ (1,727) $ 36 $ (1,691) Other comprehensive income before reclassifications, gross 75 — — 2 77 (2) 75 Tax benefit 2 — — — 2 — 2 Amounts reclassified from accumulated other comprehensive loss, gross(c) — 21 — — 21 — 21 Tax expense — (1) — — (1) — (1) Net current-period other comprehensive income 77 20 — 2 99 (2) 97 Ending balance, March 31, 2017 $ (385) $ (1,266) $ 4 $ 19 $ (1,628) $ 34 $ (1,594) (a) Amounts are net of tax of $84 and $86 as of March 31, 2017 and January 1, 2017, respectively. (b) Amounts are net of tax of $204 and $205 as of both March 31, 2017 and January 1, 2017, respectively. (c) See table below for details about these reclassifications. Three months ended March 31, 2018 2017 Amounts reclassified Amounts reclassified Affected line item in from accumulated from accumulated the statement Details about Accumulated Other other other where net income Comprehensive Loss Components(a): comprehensive loss comprehensive loss is presented Amortization of pension and other postretirement benefits: Prior service credit $ (3) $ (4) (b) Settlement loss 2 — (b) Actuarial loss 23 25 (b)(c) 22 21 Total before tax 5 (1) Income tax benefit (expense) Total reclassifications for the period $ 27 $ 20 Net of tax (a) Pension and other postretirement benefits amounts in parentheses indicate credits on our condensed consolidated statements of operations. (b) These accumulated other comprehensive loss components are included in the computation of net periodic pension costs. See “Note 11. Employee Benefit Plans.” (c) Amounts contain approximately $4 and $5 of actuarial losses related to discontinued operations for the three months ended March 31, 2018 and 2017, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2018 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 14. COMMITMENTS AND CONTINGENCIES Legal Matters Indemnification Matters On July 3, 2012, Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC (“the Banks”) demanded that we indemnify them for claims brought against them by certain MatlinPatterson entities that were formerly our stockholders (“MatlinPatterson”) in litigation filed by MatlinPatterson on June 19, 2012 in the 9th District Court in Montgomery County, Texas (the “Texas Litigation”). We denied the Banks’ indemnification demand for the Texas Litigation. These claims allegedly arose from the failed acquisition by and merger with Hexion. The Texas Litigation was dismissed, which was upheld by the Ninth Court of Appeals and the Texas Supreme Court denied review by final order entered January 7, 2016. On July 14, 2014, the Banks demanded that we indemnify them for additional claims brought against them by certain other former Company stockholders in litigation filed June 14, 2014 in the United States District Court for the Eastern District of Wisconsin (the “Wisconsin Litigation”). We denied the Banks’ indemnification demand for the Wisconsin Litigation and have made no accrual with respect to this matter. The stockholders in the Wisconsin Litigation have made essentially the same factual allegations as MatlinPatterson made in the Texas Litigation and, additionally, have named Apollo Global Management LLC and Apollo Management Holdings, L.P. as defendants. Stockholder plaintiffs in the Wisconsin Litigation assert claims for misrepresentation and conspiracy to defraud. On June 30, 2016, the plaintiffs voluntarily dismissed the Apollo defendants and on December 5, 2016, the court dismissed Deutsche Bank for lack of personal jurisdiction, but denied Credit Suisse's motion to dismiss. Subsequently, Credit Suisse asked the court to reconsider its decision or certify its judgment to the Seventh Circuit Court of Appeals for an immediate appeal, which remains pending. Subsequent to discovery, Credit Suisse filed a motion for summary judgment on August 25, 2017, and a decision is pending. The court has suspended the current scheduling order, including the trial date. We denied the Banks’ indemnification demand for both the Texas Litigation and the Wisconsin Litigation. Other Proceedings We are a party to various other proceedings instituted by private plaintiffs, governmental authorities and others arising under provisions of applicable laws, including various environmental, products liability and other laws. Except as otherwise disclosed in this report, we do not believe that the outcome of any of these matters will have a material effect on our financial condition, results of operations or liquidity. |
ENVIRONMENTAL, HEALTH AND SAFET
ENVIRONMENTAL, HEALTH AND SAFETY MATTERS | 3 Months Ended |
Mar. 31, 2018 | |
ENVIRONMENTAL, HEALTH AND SAFETY MATTERS | |
ENVIRONMENTAL, HEALTH AND SAFETY MATTERS | 15. ENVIRONMENTAL, HEALTH AND SAFETY MATTERS Ehs Capital Expenditures We may incur future costs for capital improvements and general compliance under environmental, health and safety (“EHS”) laws, including costs to acquire, maintain and repair pollution control equipment. For both of the three months ended March 31, 2018 and 2017, our capital expenditures for EHS matters totaled $6 million. Because capital expenditures for these matters are subject to evolving regulatory requirements and depend, in part, on the timing, promulgation and enforcement of specific requirements, our capital expenditures for EHS matters have varied significantly from year to year and we cannot provide assurance that our recent expenditures are indicative of future amounts we may spend related to EHS and other applicable laws. Environmental Reserves We have accrued liabilities relating to anticipated environmental cleanup obligations, site reclamation and closure costs and known penalties. Liabilities are recorded when potential liabilities are either known or considered probable and can be reasonably estimated. Our liability estimates are calculated using present value techniques as appropriate and are based upon requirements placed upon us by regulators, available facts, existing technology and past experience. The environmental liabilities do not include amounts recorded as asset retirement obligations. We had accrued $20 million and $21 million for environmental liabilities for March 31, 2018 and December 31, 2017, respectively. Of these amounts, $6 million was classified as accrued liabilities in each of our condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017, and $14 million and $15 million were classified as other noncurrent liabilities in our condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017, respectively. In certain cases, our remediation liabilities may be payable over periods of up to 30 years. We may incur losses for environmental remediation in excess of the amounts accrued; however, we are not able to estimate the amount or range of such potential excess. Environmental Matters Under the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA") and similar state laws, a current or former owner or operator of real property in the U.S. may be liable for remediation costs regardless of whether the release or disposal of hazardous substances was in compliance with law at the time it occurred, and a current owner or operator may be liable regardless of whether it owned or operated the facility at the time of the release. Outside the U.S., analogous contaminated property laws, such as those in effect in France and Australia, can hold past owners and/or operators liable for remediation at former facilities. Currently, there are approximately six former facilities or third-party sites in the U.S. for which we have been notified of potential claims against us for cleanup liabilities, including, but not limited to, sites listed under CERCLA. Based on current information and past experiences at other CERCLA sites, we do not expect these third-party claims to have a material impact on our condensed consolidated financial statements. Under the Resource Conservation and Recovery Act ("RCRA") in the U.S. and similar state laws, we may be required to remediate contamination originating from our properties as a condition to our hazardous waste permit. Some of our manufacturing sites have an extended history of industrial chemical manufacturing and use, including on-site waste disposal. We are aware of soil, groundwater or surface contamination from past operations at some of our sites, and we may find contamination at other sites in the future. For example, our Port Neches, Texas, and Geismar, Louisiana, facilities are the subject of ongoing remediation requirements imposed under RCRA. Similar laws exist in a number of locations in which we currently operate, or previously operated, manufacturing facilities, such as Australia, India, France, Hungary and Italy. West Footscray Remediation By letter dated March 7, 2006, our former Base Chemicals and Polymers facility in West Footscray, Australia was issued a cleanup notice by the Environmental Protection Authority Victoria ("EPA Victoria") due to concerns about soil and groundwater contamination emanating from the site. On August 23, 2010, EPA Victoria revoked a second cleanup notice and issued a revised notice that included a requirement for financial assurance for the remediation. As of March 31, 2018, we had an accrued liability of approximately $14 million related to estimated environmental remediation costs at this site. We can provide no assurance that the authority will not seek to institute additional requirements for the site or that additional costs will not be required for the cleanup. North Maybe Mine Remediation The North Maybe Canyon Mine site is a CERCLA site and involves a former phosphorous mine near Soda Springs, Idaho, which is believed to have been operated by several companies, including a predecessor company to us. In 2004, the U.S. Forest Service notified us that we are a CERCLA potentially responsible party (“PRP”) for contamination originating from the site. In February 2010, we and Wells Cargo (another PRP) agreed to conduct a Remedial Investigation/Feasibility Study of a portion of the site and are currently engaged in that process. At this time, we are unable to reasonably estimate our potential liabilities at this site. |
STOCK-BASED COMPENSATION PLAN
STOCK-BASED COMPENSATION PLAN | 3 Months Ended |
Mar. 31, 2018 | |
STOCK-BASED COMPENSATION PLAN | |
STOCK-BASED COMPENSATION PLAN | 16. STOCK‑BASED COMPENSATION PLANS On May 5, 2016, our stockholders approved a new Huntsman Corporation 2016 Stock Incentive Plan (the “2016 Stock Incentive Plan”), which reserved 8.2 million shares for issuance. The Huntsman Corporation Stock Incentive Plan, as amended and restated (the “Prior Plan”), remains in effect for outstanding awards granted pursuant to the Prior Plan, but no further awards may be granted under the Prior Plan. Under the 2016 Stock Incentive Plan we may grant nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, phantom stock, performance share units and other stock-based awards to our employees, directors and consultants and to employees and consultants of our subsidiaries, provided that incentive stock options may be granted solely to employees. The terms of the grants under both the 2016 Stock Incentive Plan and the Prior Plan are fixed at the grant date. As of March 31, 2018, we were authorized to grant up to 8.2 million shares under the 2016 Stock Incentive Plan. As of March 31, 2018, we had approximately 8 million shares remaining under the 2016 Stock Incentive Plan available for grant. Option awards have a maximum contractual term of 10 years and generally must have an exercise price at least equal to the market price of our common stock on the date the option award is granted. Outstanding stock-based awards generally vest annually over a three-year period. The compensation cost from continuing operations under the 2016 Stock Incentive Plan and the Prior Plan for our Company and Huntsman International were as follows (dollars in millions): Three months ended March 31, 2018 2017 Huntsman Corporation compensation cost $ 8 $ 9 Huntsman International compensation cost 7 8 The total income tax benefit recognized in the condensed consolidated statements of operations for us and Huntsman International for stock-based compensation arrangements was $4 million and $2 million for the three months ended March 31, 2018 and 2017, respectively. Stock Options The fair value of each stock option award is estimated on the date of grant using the Black‑Scholes valuation model that uses the assumptions noted in the following table. Expected volatilities are based on the historical volatility of our common stock through the grant date. The expected term of options granted was estimated based on the contractual term of the instruments and employees’ expected exercise and post‑vesting employment termination behavior. The risk‑free rate for periods within the contractual life of the option was based on the U.S. Treasury yield curve in effect at the time of grant. The assumptions noted below represent the weighted average of the assumptions utilized for stock options granted during the periods. Three months ended March 31, 2018 2017 Dividend yield 1.5 % 2.4 % Expected volatility 55.2 % 56.9 % Risk-free interest rate 2.6 % 2.0 % Expected life of stock options granted during the period 5.9 years 5.9 years A summary of stock option activity under the 2016 Stock Incentive Plan and the Prior Plan as of March 31, 2018 and changes during the three months then ended is presented below: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Option Awards Shares Price Term Value (in thousands) (years) (in millions) Outstanding at January 1, 2018 7,988 $ 13.99 Granted 479 32.77 Exercised (715) 10.05 Forfeited (12) 13.58 Outstanding at March 31, 2018 7,740 15.52 5.9 $ 108 Exercisable at March 31, 2018 5,919 14.49 5.0 87 The weighted‑average grant‑date fair value of stock options granted during the three months ended March 31, 2018 was $15.38 per option. As of March 31, 2018, there was $13 million of total unrecognized compensation cost related to nonvested stock option arrangements granted under the 2016 Stock Incentive Plan and the Prior Plan. That cost is expected to be recognized over a weighted-average period of approximately 2.3 years. The total intrinsic value of stock options exercised during the three months ended March 31, 2018 and 2017 was approximately $17 million and $5 million, respectively. Cash received from stock options exercised during the three months ended March 31, 2018 and 2017 was approximately $6 million and $17 million, respectively. The cash tax benefit from stock options exercised during the three months ended March 31, 2018 and 2017 was approximately $3 million and $1 million, respectively. Nonvested Shares Nonvested shares granted under the 2016 Stock Incentive Plan and the Prior Plan consist of restricted stock and performance share unit awards, which are accounted for as equity awards, and phantom stock, which is accounted for as a liability award because it can be settled in either stock or cash. The fair value of each performance share unit award is estimated using a Monte Carlo simulation model that uses various assumptions, including an expected volatility rate and a risk-free interest rate. For the three months ended March 31, 2018 and 2017, the weighted-average expected volatility rate was 44.3% and 45.0%, respectively, and the weighted average risk-free interest rate was 2.3% and 1.5%, respectively. For the performance share unit awards granted in the three months ended March 31, 2018 and 2017, the number of shares earned varies based upon the Company achieving certain performance criteria over a three-year performance period. The performance criteria are total stockholder return of our common stock relative to the total stockholder return of a specified industry peer group for the three-year performance periods. A summary of the status of our nonvested shares as of March 31, 2018 and changes during the three months then ended is presented below: Equity Awards Liability Awards Weighted Weighted Average Average Grant- Date Grant-Date Shares Fair Value Shares Fair Value (in thousands) (in thousands) Nonvested at January 1, 2018 2,457 $ 14.93 696 $ 14.69 Granted 414 35.32 169 32.77 Vested (699) (1) 16.71 (328) 14.67 Forfeited (107) 14.97 (6) 14.41 Nonvested at March 31, 2018 2,065 18.42 531 20.47 (1) As of March 31, 2018, a total of 473,110 restricted stock units were vested but not yet issued, of which 12,360 vested during the three months ended March 31, 2018. These shares have not been reflected as vested shares in this table because, in accordance with the restricted stock unit agreements, shares of common stock are not issued for vested restricted stock units until termination of employment. As of March 31, 2018, there was $38 million of total unrecognized compensation cost related to nonvested share compensation arrangements granted under the 2016 Stock Incentive Plan and the Prior Plan. That cost is expected to be recognized over a weighted‑average period of approximately 2.1 years. The value of share awards that vested during the three months ended March 31, 2018 and 2017 was $22 million and $20 million, respectively. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2018 | |
INCOME TAXES | |
INCOME TAXES | 17. INCOME TAXES We use the asset and liability method of accounting for income taxes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial and tax reporting purposes. We evaluate deferred tax assets to determine whether it is more likely than not that they will be realized. Valuation allowances are reviewed on an individual tax jurisdiction basis to analyze whether there is sufficient positive or negative evidence to support a change in judgment about the realizability of the related deferred tax assets. These conclusions require significant judgment. In evaluating the objective evidence that historical results provide, we consider the cyclicality of our businesses and cumulative income or losses during the applicable period. Cumulative losses incurred over the applicable period limits our ability to consider other subjective evidence such as our projections for the future. Changes in expected future income in applicable jurisdictions could affect the realization of deferred tax assets in those jurisdictions. During the three months ended March 31, 2018, we released a valuation allowance of $9 million on certain net deferred tax assets in Luxembourg as a result of changes in estimated future taxable income resulting from increased intercompany receivables and, therefore, increased income in Luxembourg, our primary treasury center outside of the U.S. During the same period, we recognized $3 million of tax benefit from share-based compensation. During the three months ended March 31, 2018 and 2017, for unrecognized tax benefits that impact tax expense, we recorded a net increase in unrecognized tax benefits and a corresponding income tax expense of $2 million and $2 million, respectively. Additional increases and decreases in unrecognized tax benefits were offset by cash settlements or decreases in net deferred tax assets and, therefore, did not affect income tax expense. The U.S. Tax Cuts and Jobs Act (the “U.S. Tax Reform Act”) establishes new tax laws that affect 2018, including, but not limited to, (1) reduction of the U.S. federal corporate tax rate; (2) the creation of the base erosion anti-abuse tax (BEAT); (3) a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries; (4) a new provision designed to tax global intangible low-taxed income (“GILTI”); (5) a new limitation on deductible interest expense; and (6) the repeal of the domestic production activity deduction. We have included the effects of these provisions in our estimated annual effective tax rate for 2018. Our accounting for the U.S. Tax Reform Act is incomplete as noted in our Form 10-K for the year ended December 31, 2017. We have, so far, been able to reasonably estimate certain effects and, therefore, recorded provisional adjustments associated with the deemed repatriation transition tax and reduction of the net deferred tax liability for the reduction in tax rate. There are also certain items where we made no provisional estimates, such as the impacts on multistate taxes and need for, or changes in, valuation allowances and unrecognized tax positions. We have not made any additional measurement-period adjustments related to these items during the first quarter of 2018 as our computations and analysis are still in process. However, we are continuing to gather additional information and expect to complete our accounting within the prescribed measurement period. Further, we have considered the additional guidance issued by the IRS in various Notices and have concluded that our provisional estimates as of December 31, 2017 would not be materially impacted. Because of the complexity of the new GILTI tax rules, we are continuing to evaluate this provision of the U.S. Tax Reform Act and the application of ASC 740. Under U.S. GAAP, we are allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into our measurement of deferred taxes (the “deferred method”). Our selection of an accounting policy related to the new GILTI tax rules will depend, in part, on analyzing our global income to determine whether we expect to have future U.S. inclusions in taxable income related to GILTI and, if so, what the impact is expected to be. As our expectation to have future U.S. inclusions in taxable income related to GILTI depends on a number of different aspects of our estimated future results of global operations, we have not recorded any potential deferred tax effects related to GILTI in our financial statements and have not made a policy decision regarding whether to record deferred taxes on GILTI or use the period cost method. We have, however, included an estimated 2018 current GILTI impact in our estimated annual effective tax rate for 2018. We expect to complete our accounting within the prescribed measurement period. Huntsman Corporation We recorded income tax expense from continuing operations of $53 million and $19 million for the three months ended March 31, 2018 and 2017, respectively. Our tax expense is significantly affected by the mix of income and losses in the tax jurisdictions in which we operate, as impacted by the presence of valuation allowances in certain tax jurisdictions. Our effective tax rate was 18% for the three months ended March 31, 2018. Higher than expected earnings in countries with low tax rates or valuation allowances, stock compensation excess benefits and the release of certain valuation allowances in Luxembourg resulted in a lower effective tax rate through the first quarter of 2018. Huntsman International Huntsman International recorded income tax expense from continuing operations of $52 million and $19 million for the three months ended March 31, 2018 and 2017, respectively. Our tax expense is significantly affected by the mix of income and losses in the tax jurisdictions in which we operate, as impacted by the presence of valuation allowances in certain tax jurisdictions. Our effective tax rate was 18% for the three months ended March 31, 2018. Higher than expected earnings in countries with low tax rates and valuation allowances, stock compensation excess benefits and the release of certain valuation allowances in Luxembourg resulted in a lower effective tax rate through the first quarter of 2018. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 3 Months Ended |
Mar. 31, 2018 | |
NET INCOME PER SHARE | |
NET INCOME PER SHARE | 18. NET INCOME PER SHARE Basic income per share excludes dilution and is computed by dividing net income attributable to Huntsman Corporation common stockholders by the weighted average number of shares outstanding during the period. Diluted income per share reflects all potential dilutive common shares outstanding during the period and is computed by dividing net income available to Huntsman Corporation common stockholders by the weighted average number of shares outstanding during the period increased by the number of additional shares that would have been outstanding as dilutive securities. Basic and diluted income per share is determined using the following information (in millions): Three months ended March 31, 2018 2017 Numerator: Basic and diluted income from continuing operations: Income from continuing operations attributable to Huntsman Corporation $ 160 $ 83 Basic and diluted net income: Net income attributable to Huntsman Corporation $ 274 $ 76 Denominator: Weighted average shares outstanding 240.8 237.4 Dilutive shares: Stock-based awards 5.1 5.1 Total weighted average shares outstanding, including dilutive shares 245.9 242.5 Additional stock‑based awards of 0.6 million and 2.2 million weighted average equivalent shares of stock were outstanding during the three months ended March 31, 2018 and 2017, respectively. However, these stock‑based awards were not included in the computation of diluted earnings per share for the three months ended March 31, 2018 and 2017 because the effect would be anti‑dilutive. |
OPERATING SEGMENT INFORMATION
OPERATING SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2018 | |
OPERATING SEGMENT INFORMATION | |
OPERATING SEGMENT INFORMATION | 19. 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. In connection with the Venator IPO in August 2017, we separated the P&A Business and, beginning in the third quarter of 2017, we reported the results of operations of the P&A Business as discontinued operations in our condensed consolidated financial statements for all periods presented. See “Note 3. Discontinued Operations.” The major products of each reportable operating segment are as follows: Segment Products Polyurethanes MDI, PO, polyols, PG, TPU, aniline and MTBE Performance Products Amines, surfactants, LAB, maleic anhydride, other performance chemicals, EG, olefins 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 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 operating segments excludes items that principally apply to our Company as a whole. The revenues and adjusted EBITDA for each of our reportable operating segments are as follows (dollars in millions): Three months ended March 31, 2018 2017 Revenues: Polyurethanes $ 1,222 $ 953 Performance Products 603 533 Advanced Materials 279 259 Textile Effects 200 188 Corporate and eliminations (9) (1) Total $ 2,295 $ 1,932 Huntsman Corporation: Segment adjusted EBITDA(1): Polyurethanes $ 261 $ 144 Performance Products 102 84 Advanced Materials 59 54 Textile Effects 26 21 Corporate and other(2) (43) (43) Total 405 260 Reconciliation of adjusted EBITDA to net income: Interest expense—continuing operations (27) (48) Interest expense—discontinued operations (9) — Income tax expense—continuing operations (53) (19) Income tax expense—discontinued operations (20) (3) Depreciation and amortization—continuing operations (82) (76) Depreciation and amortization—discontinued operations — (30) Net income attributable to noncontrolling interests 76 16 Other adjustments: Business acquisition and integration expenses (1) (3) EBITDA from discontinued operations 143 26 Noncontrolling interest of discontinued operations (55) (3) Certain legal and other settlements and related expenses (7) — Amortization of pension and postretirement actuarial losses (17) (19) Restructuring, impairment and plant closing and transition costs (3) (9) Net income $ 350 $ 92 Three months ended March 31, 2018 2017 Huntsman International: Segment adjusted EBITDA(1): Polyurethanes $ 261 $ 144 Performance Products 102 84 Advanced Materials 59 54 Textile Effects 26 21 Corporate and other(2) (40) (41) Total 408 262 Reconciliation of adjusted EBITDA to net income: Interest expense—continuing operations (32) (51) Interest expense—discontinued operations (9) — Income tax expense—continuing operations (52) (19) Income tax expense—discontinued operations (20) (3) Depreciation and amortization—continuing operations (81) (74) Depreciation and amortization—discontinued operations — (30) Net income attributable to noncontrolling interests 76 16 Other adjustments: Business acquisition and integration expenses (1) (3) EBITDA from discontinued operations 143 25 Noncontrolling interest of discontinued operations (55) (3) Certain legal and other settlements and related expenses (7) — Amortization of pension and postretirement actuarial losses (20) (20) Restructuring, impairment and plant closing and transition costs (3) (9) Net income $ 347 $ 91 (1) 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) EBITDA from discontinued operations; (c) noncontrolling interest of discontinued operations; (d) certain legal and other settlements and related expenses; (e) amortization of pension and postretirement actuarial losses; and (f) restructuring, impairment and plant closing and transition 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, benzene sales and gains and losses on the disposition of corporate assets. |
CONDENSED CONSOLIDATING FINANCI
CONDENSED CONSOLIDATING FINANCIAL INFORMATION - HUNTSMAN INTERNATIONAL | 3 Months Ended |
Mar. 31, 2018 | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION - HUNTSMAN INTERNATIONAL | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION - HUNTSMAN INTERNATIONAL | 20. CONDENSED CONSOLIDATING FINANCIAL INFORMATION OF HUNTSMAN INTERNATIONAL LLC The following unaudited condensed consolidating financial statements present, in separate columns, financial information for the following: Huntsman International (on a parent only basis), with its investment in subsidiaries recorded under the equity method; the Guarantors on a combined, and where appropriate, consolidated basis; and the Nonguarantors on a combined, and where appropriate, consolidated basis. Additional columns present eliminating adjustments and consolidated totals as of March 31, 2018 and December 31, 2017 and for the three months ended March 31, 2018 and 2017. There are no contractual restrictions limiting transfers of cash from the Guarantors to Huntsman International. Each of the Guarantors is 100% owned by Huntsman International and has fully and unconditionally guaranteed, subject to certain customary release provisions, Huntsman International’s outstanding notes on a joint and several basis. HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS AS OF MARCH 31, 2018 (In Millions) Consolidated Parent Huntsman Company Guarantors Nonguarantors Eliminations International LLC ASSETS Current assets: Cash and cash equivalents $ 63 $ — $ 381 $ — $ 444 Restricted cash — — 9 — 9 Accounts and notes receivable, net 29 110 1,229 6 1,374 Accounts receivable from affiliates 971 4,236 589 (5,403) 393 Inventories 118 223 864 (2) 1,203 Prepaid expenses 20 9 46 (7) 68 Other current assets 786 2 175 (767) 196 Current assets held for sale — — 3,060 — 3,060 Total current assets 1,987 4,580 6,353 (6,173) 6,747 Property, plant and equipment, net 459 1,101 1,555 — 3,115 Investment in unconsolidated affiliates 6,864 2,691 284 (9,555) 284 Intangible assets, net 25 — 30 — 55 Goodwill (15) 82 74 — 141 Deferred income taxes 335 — 212 (335) 212 Notes receivable from affiliates 72 582 — (654) — Other noncurrent assets 48 178 286 (1) 511 Total assets $ 9,775 $ 9,214 $ 8,794 $ (16,718) $ 11,065 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 55 $ 232 $ 667 $ 7 $ 961 Accounts payable to affiliates 4,206 518 769 (5,404) 89 Accrued liabilities 82 819 404 (774) 531 Note payable to affiliate 100 — — — 100 Current portion of debt 13 — 23 — 36 Current liabilities held for sale — — 1,721 — 1,721 Total current liabilities 4,456 1,569 3,584 (6,171) 3,438 Long-term debt 1,964 — 334 — 2,298 Notes payable to affiliates 702 — 654 (654) 702 Deferred income taxes 12 186 43 30 271 Other noncurrent liabilities 221 269 587 — 1,077 Total liabilities 7,355 2,024 5,202 (6,795) 7,786 Equity Huntsman International LLC members’ equity Members’ equity 3,639 2,210 3,765 (5,975) 3,639 (Accumulated deficit) retained earnings (28) 3,030 100 (3,130) (28) Accumulated other comprehensive (loss) income (1,191) 1,950 (1,128) (822) (1,191) Total Huntsman International LLC members’ equity 2,420 7,190 2,737 (9,927) 2,420 Noncontrolling interests in subsidiaries — — 855 4 859 Total equity 2,420 7,190 3,592 (9,923) 3,279 Total liabilities and equity $ 9,775 $ 9,214 $ 8,794 $ (16,718) $ 11,065 HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS AS OF DECEMBER 31, 2017 (In Millions) Consolidated Parent Huntsman Company Guarantors Nonguarantors Eliminations International LLC ASSETS Current assets: Cash and cash equivalents $ 74 $ — $ 394 $ — $ 468 Restricted cash — — 11 — 11 Accounts and notes receivable, net 36 94 1,120 5 1,255 Accounts receivable from affiliates 983 4,130 391 (5,131) 373 Inventories 101 210 767 (5) 1,073 Prepaid expenses 21 10 39 (11) 59 Other current assets 783 3 170 (752) 204 Current assets held for sale — — 2,880 — 2,880 Total current assets 1,998 4,447 5,772 (5,894) 6,323 Property, plant and equipment, net 461 1,119 1,515 — 3,095 Investment in unconsolidated affiliates 6,364 2,268 266 (8,632) 266 Intangible assets, net 25 — 31 — 56 Goodwill (14) 82 72 — 140 Deferred income taxes 323 — 208 (323) 208 Notes receivable from affiliates 72 569 — (641) — Other noncurrent assets 52 189 257 (1) 497 Total assets $ 9,281 $ 8,674 $ 8,121 $ (15,491) $ 10,585 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 74 $ 214 $ 652 $ 6 $ 946 Accounts payable to affiliates 4,019 485 697 (5,131) 70 Accrued liabilities 89 826 413 (762) 566 Note payable to affiliate 100 — — — 100 Current portion of debt 17 — 23 — 40 Current liabilities held for sale — — 1,692 — 1,692 Total current liabilities 4,299 1,525 3,477 (5,887) 3,414 Long-term debt 1,927 — 331 — 2,258 Notes payable to affiliates 742 — 642 (642) 742 Deferred income taxes 12 179 33 41 265 Other noncurrent liabilities 218 278 576 — 1,072 Total liabilities 7,198 1,982 5,059 (6,488) 7,751 Equity Huntsman International LLC members’ equity Members’ equity 3,616 2,216 3,641 (5,857) 3,616 (Accumulated deficit) retained earnings (270) 2,749 (116) (2,633) (270) Accumulated other comprehensive (loss) income (1,263) 1,727 (1,211) (516) (1,263) Total Huntsman International LLC members' equity 2,083 6,692 2,314 (9,006) 2,083 Noncontrolling interests in subsidiaries — — 748 3 751 Total equity 2,083 6,692 3,062 (9,003) 2,834 Total liabilities and equity $ 9,281 $ 8,674 $ 8,121 $ (15,491) $ 10,585 HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME THREE MONTHS ENDED MARCH 31, 2018 (In Millions) Consolidated Parent Huntsman Company Guarantors Nonguarantors Eliminations International LLC Revenues: Trade sales, services and fees, net $ 295 $ 599 $ 1,361 $ — $ 2,255 Related party sales 48 95 295 (398) 40 Total revenues 343 694 1,656 (398) 2,295 Cost of goods sold 286 580 1,289 (401) 1,754 Gross profit 57 114 367 3 541 Selling, general and administrative 58 24 109 — 191 Research and development 12 11 15 — 38 Restructuring, impairment and plant closing costs (credits) 6 — (4) — 2 Other operating expense (income), net 16 (3) (1) — 12 Operating (expense) income (35) 82 248 3 298 Interest (expense) income (33) 6 (5) — (32) Equity in income of investment in affiliates and subsidiaries 284 258 13 (542) 13 Dividend income 43 — — (43) — Other (expense) income, net (1) (1) 8 — 6 Income from continuing operations before income taxes 258 345 264 (582) 285 Income tax benefit (expense) 10 (21) (41) — (52) Income from continuing operations 268 324 223 (582) 233 Income from discontinued operations, net of tax 3 — 111 — 114 Net income 271 324 334 (582) 347 Net income attributable to noncontrolling interests — — (75) (1) (76) Net income attributable to Huntsman International LLC $ 271 $ 324 $ 259 $ (583) $ 271 Net income $ 271 $ 324 $ 334 $ (582) $ 347 Other comprehensive income 70 223 118 (306) 105 Comprehensive income attributable to noncontrolling interests — — (83) — (83) Comprehensive income attributable to Huntsman International LLC $ 341 $ 547 $ 369 $ (888) $ 369 HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME THREE MONTHS ENDED MARCH 31, 2017 (In Millions) Consolidated Parent Huntsman Company Guarantors Nonguarantors Eliminations International LLC Revenues: Trade sales, services and fees, net $ 247 $ 526 $ 1,118 $ — $ 1,891 Related party sales 57 82 260 (358) 41 Total revenues 304 608 1,378 (358) 1,932 Cost of goods sold 247 527 1,122 (356) 1,540 Gross profit 57 81 256 (2) 392 Selling, general and administrative 49 31 110 — 190 Research and development 11 10 13 — 34 Restructuring, impairment and plant closing costs 1 — 8 — 9 Other operating expense (income), net 3 (15) 6 — (6) Operating (expense) income (7) 55 119 (2) 165 Interest (expense) income (50) 6 (7) — (51) Equity in income of investment in affiliates and subsidiaries 124 95 1 (220) — Dividend income — — 1 (1) — Other income, net 1 — 3 — 4 Income from continuing operations before income taxes 68 156 117 (223) 118 Income tax benefit (expense) 14 (23) (10) — (19) Income from continuing operations 82 133 107 (223) 99 Loss from discontinued operations, net of tax (7) — (1) — (8) Net income 75 133 106 (223) 91 Net income attributable to noncontrolling interests — — (16) — (16) Net income attributable to Huntsman International LLC $ 75 $ 133 $ 90 $ (223) $ 75 Net income $ 75 $ 133 $ 106 $ (223) $ 91 Other comprehensive income 95 122 97 (215) 99 Comprehensive income attributable to noncontrolling interests — — (15) (3) (18) Comprehensive income attributable to Huntsman International LLC $ 170 $ 255 $ 188 $ (441) $ 172 HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2018 (In Millions) Consolidated Parent Huntsman Company Guarantors Nonguarantors Eliminations International LLC Net cash provided by (used in) operating activities from continuing operations $ 171 $ 22 $ (47) $ (41) $ 105 Net cash provided by operating activities from discontinued operations — — 52 — 52 Net cash provided by operating activities 171 22 5 (41) 157 Investing activities: Capital expenditures (5) (15) (35) — (55) Cash paid to consolidated affiliates (70) (1) — 71 — Acquisition of business, net of cash acquired (15) — 1 — (14) Increase in receivable from affiliate (9) — — — (9) Net cash used in investing activities from continuing operations (99) (16) (34) 71 (78) Net cash used in investing activities from discontinued operations — — (67) — (67) Net cash used in investing activities (99) (16) (101) 71 (145) Financing activities: Net repayments on overdraft facilities — — (1) — (1) Repayments of short-term debt — — (2) — (2) Borrowings on short term debt — — 2 — 2 Repayments of long-term debt — — (4) — (4) Repayments of notes payable to affiliate (40) — — — (40) Repayments of notes payable (4) — (5) — (9) Dividends paid to noncontrolling interests — — (18) — (18) Contribution from parent — 1 78 (79) — Distribution to parent — (7) — 7 — Dividends paid to parent (39) — (42) 42 (39) Proceeds from the secondary offering of P&A Business — — 44 — 44 Cash paid for expenses of the secondary offering of P&A Business — — (2) — (2) Net cash (used in) provided by financing activities (83) (6) 50 (30) (69) Effect of exchange rate changes on cash — — 16 — 16 Decrease in cash, cash equivalents and restricted cash (11) — (30) — (41) Cash, cash equivalents and restricted cash from continuing operations at beginning of period 74 — 405 — 479 Cash, cash equivalents and restricted cash from discontinued operations at beginning of period — — 238 — 238 Cash, cash equivalents and restricted cash at end of period $ 63 $ — $ 613 $ — $ 676 . HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2017 (In Millions) Consolidated Parent Huntsman Company Guarantors Nonguarantors Eliminations International LLC Net cash provided by (used in) operating activities from continuing operations $ 65 $ 16 $ (13) $ — $ 68 Net cash (used in) provided by operating activities from discontinued operations (7) — 29 — 22 Net cash provided by operating activities 58 16 16 — 90 Investing activities: Capital expenditures (8) (9) (34) — (51) Investment in affiliate (12) — — 12 — Increase in receivable in affiliate (7) — — — (7) Other, net — — 5 — 5 Net cash used in investing activities from continuing operations (27) (9) (29) 12 (53) Net cash provided by investing activities from discontinued operations — — 24 — 24 Net cash used in investing activities (27) (9) (5) 12 (29) Financing activities: Repayments of short-term debt — — (6) — (6) Borrowings on short-term debt — — 2 — 2 Repayments of long-term debt (4) — (3) — (7) Proceeds from issuance of long-term debt — — 8 — 8 Repayments of notes payable to affiliate (5) — — — (5) Proceeds from notes payable to affiliate 15 — — — 15 Dividends paid to noncontrolling interests — — (3) — (3) Contribution from noncontrolling interests — — 2 — 2 Contribution from parent — — 19 (19) — Distribution to parent — (7) — 7 — Dividends paid to parent (30) — — — (30) Net cash (used in) provided by financing activities (24) (7) 19 (12) (24) Effect of exchange rate changes on cash — — 5 — 5 Increase in cash, cash equivalents and restricted cash 7 — 35 — 42 Cash, cash equivalents and restricted cash from continuing operations at beginning of period 37 — 358 — 395 Cash, cash equivalents and restricted cash from discontinued operations at beginning of period — — 29 — 29 Cash, cash equivalents and restricted cash at end of period $ 44 $ — $ 422 $ — $ 466 |
GENERAL (Policies)
GENERAL (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
GENERAL | |
PRINCIPLES OF CONSOLIDATION | Principles of Consolidation Our condensed consolidated financial statements include the accounts of our wholly‑owned and majority‑owned subsidiaries and any variable interest entities for which we are the primary beneficiary. Intercompany accounts and transactions have been eliminated. |
RECLASSIFICATIONS | Reclassifications Certain amounts in the consolidated financial statements for prior periods have been reclassified to conform with the current presentation. These reclassifications presented the other components of net periodic pension cost and net periodic postretirement cost within other nonoperating income in accordance with Accounting Standards Update (“ASU”) No. 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . We previously presented these amounts within cost of goods sold and selling, general and administrative expenses. See “Note 2. Recently Issued Pronouncements.” |
USE OF ESTIMATES | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Summary of major classes of assets and liabilities constituting assets and liabilities held for sale | The following table summarizes the major classes of assets and liabilities constituting assets and liabilities held for sale (dollars in millions): March 31, December 31, 2018 2017 Carrying amounts of major classes of assets held for sale: Accounts receivable $ 439 $ 380 Inventories 482 454 Other current assets 311 318 Property, plant and equipment, net 1,534 1,424 Deferred income taxes 153 158 Other noncurrent assets 141 146 Total assets held for sale $ 3,060 $ 2,880 Carrying amounts of major classes of liabilities in held for sale: Accounts payable $ 387 $ 385 Accrued liabilities 249 236 Other current liabilities 19 25 Long term debt 747 746 Other noncurrent liabilities 319 300 Total liabilities held for sale $ 1,721 $ 1,692 (1) The assets and liabilities held for sale are classified as current as of March 31, 2018 and December 31, 2017 because it is probable that the sale of our controlling financial interest in Venator ordinary shares will occur and proceeds will be collected within one year. The following table summarizes major classes of line items constituting pretax and after-tax income of discontinued operations (dollars in millions): Huntsman Corporation March 31, 2018 2017 Major classes of line items constituting pretax income (loss) of discontinued operations: Trade sales, services and fees, net $ 627 $ 543 Cost of goods sold 476 470 Selling, general and administrative 51 40 Restructuring, impairment and plant closing costs 9 27 Business separation expenses — 9 Interest expense 9 — Other operating income, net (50) — Other (income) loss, net (2) 1 Income (loss) from discontinued operations before income taxes 134 (4) Income tax expense (20) (3) Income (loss) from discontinued operations, net of tax 114 (7) Net income attributable to noncontrolling interests (2) (3) Net income (loss) attributable to discontinued operations $ 112 $ (10) |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Summary of major classes of assets and liabilities constituting assets and liabilities held for sale | March 31, 2018 2017 Major classes of line items constituting pretax income (loss) of discontinued operations: Trade sales, services and fees, net $ 627 $ 543 Cost of goods sold 476 471 Selling, general and administrative 51 40 Restructuring, impairment and plant closing costs 9 27 Business separation expenses — 9 Interest expense 9 — Other operating income, net (50) — Other (income) loss, net (2) 1 Income (loss) from discontinued operations before income taxes 134 (5) Income tax expense (20) (3) Income (loss) from discontinued operations, net of tax 114 (8) Net income attributable to noncontrolling interests (2) (3) Net income (loss) attributable to discontinued operations $ 112 $ (11) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
INVENTORIES | |
Schedule of inventory | Inventories consisted of the following (dollars in millions): March 31, December 31, 2018 2017 Raw materials and supplies $ 240 $ 189 Work in progress 50 48 Finished goods 972 897 Total 1,262 1,134 LIFO reserves (59) (61) Net inventories $ 1,203 $ 1,073 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
VARIABLE INTEREST ENTITIES | |
Schedule of financial information of VIE's | The following table summarizes the carrying amount of our variable interest entities’ assets and liabilities included in our condensed consolidated balance sheet as of March 31, 2018 and our consolidated balance sheet as of December 31, 2017 (dollars in millions): March 31, December 31, 2018 2017 Current assets $ 120 $ 114 Property, plant and equipment, net 265 283 Other noncurrent assets 134 116 Deferred income taxes 33 33 Intangible assets 10 10 Goodwill 15 14 Total assets $ 577 $ 570 Current liabilities $ 144 $ 163 Long-term debt 83 86 Deferred income taxes 13 12 Other noncurrent liabilities 99 98 Total liabilities $ 339 $ 359 The revenues, income from continuing operations before income taxes and net cash provided by operating activities for our variable interest entities for the three months ended March 31, 2018 and 2017 are as follows (dollars in millions): Three months ended March 31, 2018 2017 Revenues $ 37 $ 31 Income from continuing operations before income taxes 9 4 Net cash provided by operating activities 15 12 |
RESTRUCTURING, IMPAIRMENT AND33
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS | |
Schedule of accrued restructuring, impairment and plant closing costs by type of cost and initiative | As of March 31, 2018 and December 31, 2017, accrued restructuring costs of continuing operations by type of cost and initiative consisted of the following (dollars in millions): Non-cancelable Other Workforce Demolition and lease and contract restructuring reductions(1) decommissioning termination costs costs Total(2) Accrued liabilities as of January 1, 2018 $ 5 $ 2 $ 41 $ 5 $ 53 2018 credits for 2017 and prior initiatives — — — (5) (5) 2018 charges for 2018 initiatives — — — 5 5 2018 (credits) payments for 2017 and prior initiatives (1) (1) (1) 5 2 2018 payments for 2018 initiatives — — — (1) (1) Foreign currency effect on liability balance 1 — 2 — 3 Accrued liabilities as of March 31, 2018 $ 5 $ 1 $ 42 $ 9 $ 57 (1) The workforce reduction reserves relate to the termination of 125 positions, of which 81 positions had not been terminated as of March 31, 2018. (2) Accrued liabilities by initiatives were as follows (dollars in millions): March 31, December 31, 2018 2017 2016 and prior initiatives $ 51 $ 51 2017 initiatives 2 2 2018 initiatives 4 — Total $ 57 $ 53 |
Schedule of accrued liabilities by year of initiatives | March 31, December 31, 2018 2017 2016 and prior initiatives $ 51 $ 51 2017 initiatives 2 2 2018 initiatives 4 — Total $ 57 $ 53 |
Schedule of details with respect to reserves for restructuring, impairment and plant closing costs, provided by segment and initiative | Details with respect to our reserves for restructuring, impairment and plant closing costs are provided below by segment and initiative (dollars in millions): Performance Advanced Textile Corporate Polyurethanes Products Materials Effects and other Total Accrued liabilities as of January 1, 2018 $ 1 $ 1 $ 3 $ 47 $ 1 $ 53 2018 credits for 2017 and prior initiatives — — — (5) — (5) 2018 charges for 2018 initiatives — — — — 5 5 2018 (credits) payments for 2017 and prior initiatives (1) — — 3 — 2 2018 payments for 2018 initiatives — — — — (1) (1) Foreign currency effect on liability balance — — 1 2 — 3 Accrued liabilities as of March 31, 2018 $ — $ 1 $ 4 47 $ 5 $ 57 Current portion of restructuring reserves $ — $ 1 $ 1 $ 7 $ 5 $ 14 Long-term portion of restructuring reserves — — 3 40 — 43 |
Schedule of cash and noncash restructuring charges by initiative | Details with respect to cash and noncash restructuring charges from continuing operations for the three months ended March 31, 2018 and 2017 by initiative are provided below (dollars in millions): Three months ended March 31, 2018 Cash charges: 2018 credits for 2017 and prior initiatives $ (5) 2018 charges for 2018 initiatives 5 Pension-related charges — Noncash charges: Accelerated depreciation — Other noncash credits 2 Total 2018 Restructuring, Impairment and Plant Closing Costs $ 2 Three months ended March 31, 2017 Cash charges: 2017 charges for 2016 and prior initiatives $ 3 2017 charges for 2017 initiatives 6 Noncash charges: Accelerated depreciation 1 Other noncash credits (1) Total 2017 Restructuring, Impairment and Plant Closing Costs $ 9 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt | |
Schedule of outstanding debt | Outstanding debt, net of debt issuance costs, consisted of the following (dollars in millions): Huntsman Corporation March 31, December 31, 2018 2017 Senior Credit Facilities: Revolving facility $ — $ — Amounts outstanding under A/R programs 184 180 Senior notes 1,964 1,927 Variable interest entities 105 107 Other 81 84 Total debt $ 2,334 $ 2,298 Total current portion of debt $ 36 $ 40 Long-term portion of debt 2,298 2,258 Total debt $ 2,334 $ 2,298 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |
Debt | |
Schedule of outstanding debt | March 31, December 31, 2018 2017 Senior Credit Facilities: Revolving facility $ — $ — Amounts outstanding under A/R programs 184 180 Senior notes 1,964 1,927 Variable interest entities 105 107 Other 81 84 Total debt, excluding debt to affiliates $ 2,334 $ 2,298 Total current portion of debt $ 36 $ 40 Long-term portion of debt 2,298 2,258 Total debt, excluding debt to affiliates $ 2,334 $ 2,298 Total debt, excluding debt to affiliates $ 2,334 $ 2,298 Notes payable to affiliates-current 100 100 Notes payable to affiliates-noncurrent 702 742 Total debt $ 3,136 $ 3,140 |
Schedule of Senior Credit Facilities | As of March 31, 2018, our senior credit facilities (“Senior Credit Facilities”) consisted of our Revolving Facility as follows (dollars in millions): Unamortized Discounts and Committed Principal Debt Issuance Carrying Facility Amount Outstanding Costs Value Interest Rate(2) Maturity Revolving Facility $ 650 $ — $ — $ — USD LIBOR plus 2.50% (1) We had no borrowings outstanding under our Revolving Facility; we had approximately $9 million (U.S. dollar equivalents) of letters of credit and bank guarantees issued and outstanding under our Revolving Facility. (2) The applicable interest rate of the Revolving Facility is subject to certain secured leverage ratio thresholds. |
Schedule of A/R Programs | Information regarding our A/R Programs as of March 31, 2018 was as follows (monetary amounts in millions): Maximum Funding Amount Facility Maturity Availability(1) Outstanding Interest Rate(2) U.S. A/R Program April 2020 $ 250 $ 90 (3) Applicable rate plus 0.95% EU A/R Program April 2020 € 150 € 76 Applicable rate plus 1.30% (approximately $186) (approximately $94) (1) The amount of actual availability under our A/R Programs may be lower based on the level of eligible receivables sold, changes in the credit ratings of our customers, customer concentration levels and certain characteristics of the accounts receivable being transferred, as defined in the applicable agreements. (2) The applicable rate for our U.S. A/R Program is defined by the lender as either USD LIBOR or CP rate. The applicable rate for our EU A/R Program is either GBP LIBOR, USD LIBOR or EURIBOR. In addition, the U.S. SPE and the EU SPE are obligated to pay unused commitment fees to the lenders based on the amount of each lender’s commitment. (3) As of March 31, 2018, we had approximately $5 million (U.S. dollar equivalents) of letters of credit issued and outstanding under our U.S. A/R Program. |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
FAIR VALUE | |
Schedule of fair values of financial instruments | The fair values of financial instruments were as follows (dollars in millions): March 31, 2018 December 31, 2017 Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value Non-qualified employee benefit plan investments $ 24 $ 24 $ 33 $ 33 Interest rate contracts (1) (1) (1) (1) Long-term debt (including current portion) (2,334) (2,483) (2,298) (2,483) |
Schedule of assets and liabilities are measured at fair value on a recurring basis | The following assets and liabilities are measured at fair value on a recurring basis (dollars in millions): Fair Value Amounts Using Quoted prices Significant other Significant in active markets observable unobservable March 31, for identical inputs inputs Description 2018 assets (Level 1)(2) (Level 2)(2) (Level 3) Assets: Equity securities: Non-qualified employee benefit plan investments $ 24 $ 24 $ — $ — Liabilities: Derivatives: Interest rate contracts(1) $ (1) $ — $ (1) $ — Fair Value Amounts Using Quoted prices Significant other Significant in active markets observable unobservable December 31, for identical inputs inputs Description 2017 assets (Level 1)(2) (Level 2)(2) (Level 3) Assets: Equity securities: Non-qualified employee benefit plan investments $ 33 $ 33 $ — $ — Liabilities: Derivatives: Interest rate contracts(1) $ (1) $ — $ (1) $ — (1) The income approach is used to calculate the fair value of these instruments. Fair value represents the present value of estimated future cash flows, calculated using relevant interest rates and yield curves at stated intervals. There were no material changes to the valuation method or assumptions used to determine the fair value during the current period. (2) There were no transfers between Levels 1 and 2 within the fair value hierarchy during the three months ended March 31, 2018 and the year ended December 31, 2017. |
Schedule of reconciliation of beginning and ending balances for instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | The following table shows a reconciliation of beginning and ending balances for the three months ended March 31, 2017 for instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (dollars in millions). During the three months ended March 31, 2018, there were no instruments categorized as Level 3 within the fair value hierarchy. Cross-Currency Interest Rate Contracts Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Beginning balance $ 29 Transfers into Level 3 — Transfers out of Level 3 — Total (losses) gains: Included in earnings — Included in other comprehensive income (loss) — Purchases, sales, issuances and settlements — Ending balance, March 31, 2017 $ 29 The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets still held at March 31, 2017 $ — |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
REVENUE RECOGNITION | |
Schedule of disaggregation of revenue by major source | Polyurethanes Performance Products Advanced Materials Textile Effects Eliminations Total Primary Geographic Markets U.S. and Canada $ 357 $ 343 $ 69 $ 17 $ (8) $ 778 Europe 340 108 118 35 (1) 600 Asia Pacific 299 110 68 114 — 591 Rest of world 226 42 24 34 — 326 $ 1,222 $ 603 $ 279 $ 200 $ (9) $ 2,295 Major Product Groupings MDI urethanes $ 1,085 $ 1,085 MTBE 137 137 Differentiated $ 539 539 Upstream 64 64 Specialty $ 236 236 Non-specialty 43 43 Textile chemicals and dyes and digital inks $ 200 200 Eliminations $ (9) (9) $ 1,222 $ 603 $ 279 $ 200 $ (9) $ 2,295 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
EMPLOYEE BENEFIT PLANS | |
Components of the net periodic benefit costs | Other Postretirement Defined Benefit Plans Benefit Plans Three months Three months ended ended March 31, March 31, 2018 2017 2018 2017 Service cost $ 17 $ 15 $ 1 $ 1 Interest cost 20 20 1 1 Expected return on assets (43) (38) — — Amortization of prior service benefit (2) (2) (1) (2) Amortization of actuarial loss 18 18 — 1 Settlement loss 2 — — — Net periodic benefit cost $ 12 $ 13 $ 1 $ 1 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |
EMPLOYEE BENEFIT PLANS | |
Components of the net periodic benefit costs | Other Postretirement Defined Benefit Plans Benefit Plans Three months Three months ended ended March 31, March 31, 2018 2017 2018 2017 Service cost $ 17 $ 15 $ 1 $ 1 Interest cost 20 20 1 1 Expected return on assets (43) (38) — — Amortization of prior service benefit (2) (2) (1) (2) Amortization of actuarial loss 19 19 — 1 Settlement loss 2 — — — Net periodic benefit cost $ 13 $ 14 $ 1 $ 1 |
OTHER COMPREHENSIVE INCOME (LOS
OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
OTHER COMPREHENSIVE INCOME | |
Schedule of other comprehensive loss | The components of other comprehensive income (loss) and changes in accumulated other comprehensive loss by component were as follows (dollars in millions): Huntsman Corporation Pension and Other Foreign other comprehensive Amounts Amounts currency postretirement income of attributable to attributable to translation benefits unconsolidated noncontrolling Huntsman adjustment(a) adjustments(b) affiliates Other, net Total interests Corporation Beginning balance, January 1, 2018 $ (249) $ (1,189) $ 3 $ 24 $ (1,411) $ 143 $ (1,268) Cumulative effect of changes in fair value of equity investments — — — (10) (10) — (10) Revised beginning balance, January 1, 2018 (249) (1,189) 3 14 (1,421) 143 (1,278) Other comprehensive income (loss) before reclassifications, gross 83 (2) — — 81 (7) 74 Tax benefit (expense) 4 — — (3) 1 — 1 Amounts reclassified from accumulated other comprehensive loss, gross(c) — 22 — — 22 — 22 Tax benefit (expense) — 5 — (6) (1) — (1) Net current-period other comprehensive income (loss) 87 25 — (9) 103 (7) 96 Disposition of a portion of P&A Business — — — — — (16) (16) Ending balance, March 31, 2018 $ (162) $ (1,164) $ 3 $ 5 $ (1,318) $ 120 $ (1,198) (a) Amounts are net of tax of $61 and $65 as of March 31, 2018 and January 1, 2018, respectively. (b) Amounts are net of tax of $177 and $172 as of March 31, 2018 and January 1, 2018, respectively. (c) See table below for details about these reclassifications. Pension and Other Foreign other comprehensive Amounts Amounts currency postretirement income of attributable to attributable to translation benefits unconsolidated noncontrolling Huntsman adjustment(a) adjustments(b) affiliates Other, net Total interests Corporation Beginning balance, January 1, 2017 $ (459) $ (1,275) $ 4 $ 23 $ (1,707) $ 36 $ (1,671) Other comprehensive income before reclassifications, gross 74 — — 2 76 (2) 74 Tax benefit 3 — — — 3 — 3 Amounts reclassified from accumulated other comprehensive loss, gross(c) — 19 — — 19 — 19 Tax expense — (1) — — (1) — (1) Net current-period other comprehensive income 77 18 — 2 97 (2) 95 Ending balance, March 31, 2017 $ (382) $ (1,257) $ 4 $ 25 $ (1,610) $ 34 $ (1,576) (a) (b) (c) |
Schedule of details about reclassifications from other comprehensive loss | Three months ended March 31, 2018 2017 Amounts reclassified Amounts reclassified Affected line item in from accumulated from accumulated the statement Details about Accumulated Other other other where net income Comprehensive Loss Components(a): comprehensive loss comprehensive loss is presented Amortization of pension and other postretirement benefits: Prior service credit $ (3) $ (4) (b) Settlement loss 2 — (b) Actuarial loss 23 23 (b)(c) 22 19 Total before tax 5 (1) Income tax benefit (expense) Total reclassifications for the period $ 27 $ 18 Net of tax (a) Pension and other postretirement benefits amounts in parentheses indicate credits on our condensed consolidated statements of operations. (b) These accumulated other comprehensive loss components are included in the computation of net periodic pension costs. See “Note 11. Employee Benefit Plans.” (c) Amounts contain approximately $4 and $5 of actuarial losses related to discontinued operations for the three months ended March 31, 2018 and 2017. |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |
OTHER COMPREHENSIVE INCOME | |
Schedule of other comprehensive loss | Huntsman International Foreign Pension Other Other, net Total Amounts Amounts Beginning balance, January 1, 2018 $ (252) $ (1,174) $ 3 $ 17 $ (1,406) $ 143 $ (1,263) Cumulative effect of changes in fair value of equity investments — — — (10) (10) — (10) Revised beginning balance, January 1, 2018 (252) (1,174) 3 7 (1,416) 143 (1,273) Other comprehensive income (loss) before reclassifications, gross 81 (2) 1 — 80 (7) 73 Tax benefit (expense) 4 — — (1) 3 — 3 Amounts reclassified from accumulated other comprehensive loss, gross(c) — 22 — — 22 — 22 Tax expense — 5 — (5) — — — Net current-period other comprehensive income (loss) 85 25 1 (6) 105 (7) 98 Disposition of a portion of P&A Business — — — — — (16) (16) Ending balance, March 31, 2018 $ (167) $ (1,149) $ 4 $ 1 $ (1,311) $ 120 $ (1,191) (a) Amounts are net of tax of $48 and $51 as of March 31, 2018 and January 1, 2018, respectively. (b) Amounts are net of tax of $204 and $199 as of March 31, 2018 and January 1, 2018, respectively. (c) See table below for details about these reclassifications. Foreign Pension Other Other, net Total Amounts Amounts Beginning balance, January 1, 2017 $ (462) $ (1,286) $ 4 $ 17 $ (1,727) $ 36 $ (1,691) Other comprehensive income before reclassifications, gross 75 — — 2 77 (2) 75 Tax benefit 2 — — — 2 — 2 Amounts reclassified from accumulated other comprehensive loss, gross(c) — 21 — — 21 — 21 Tax expense — (1) — — (1) — (1) Net current-period other comprehensive income 77 20 — 2 99 (2) 97 Ending balance, March 31, 2017 $ (385) $ (1,266) $ 4 $ 19 $ (1,628) $ 34 $ (1,594) (a) Amounts are net of tax of $84 and $86 as of March 31, 2017 and January 1, 2017, respectively. (b) Amounts are net of tax of $204 and $205 as of both March 31, 2017 and January 1, 2017, respectively. (c) See table below for details about these reclassifications. |
Schedule of details about reclassifications from other comprehensive loss | Three months ended March 31, 2018 2017 Amounts reclassified Amounts reclassified Affected line item in from accumulated from accumulated the statement Details about Accumulated Other other other where net income Comprehensive Loss Components(a): comprehensive loss comprehensive loss is presented Amortization of pension and other postretirement benefits: Prior service credit $ (3) $ (4) (b) Settlement loss 2 — (b) Actuarial loss 23 25 (b)(c) 22 21 Total before tax 5 (1) Income tax benefit (expense) Total reclassifications for the period $ 27 $ 20 Net of tax (a) Pension and other postretirement benefits amounts in parentheses indicate credits on our condensed consolidated statements of operations. (b) These accumulated other comprehensive loss components are included in the computation of net periodic pension costs. See “Note 11. Employee Benefit Plans.” (c) Amounts contain approximately $4 and $5 of actuarial losses related to discontinued operations for the three months ended March 31, 2018 and 2017, respectively. |
STOCK-BASED COMPENSATION PLAN (
STOCK-BASED COMPENSATION PLAN (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
STOCK-BASED COMPENSATION PLAN | |
Schedule of compensation cost from continuing operations under the 2016 Stock Incentive Plan and the Prior Plan | The compensation cost from continuing operations under the 2016 Stock Incentive Plan and the Prior Plan for our Company and Huntsman International were as follows (dollars in millions): Three months ended March 31, 2018 2017 Huntsman Corporation compensation cost $ 8 $ 9 Huntsman International compensation cost 7 8 |
Schedule of assumptions used to calculate fair value of each stock option award estimated on the date of grant using the Black-Scholes valuation model | Three months ended March 31, 2018 2017 Dividend yield 1.5 % 2.4 % Expected volatility 55.2 % 56.9 % Risk-free interest rate 2.6 % 2.0 % Expected life of stock options granted during the period 5.9 years 5.9 years |
Summary of stock option activity under the 2016 Stock Incentive Plan and the Prior Plan | Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Option Awards Shares Price Term Value (in thousands) (years) (in millions) Outstanding at January 1, 2018 7,988 $ 13.99 Granted 479 32.77 Exercised (715) 10.05 Forfeited (12) 13.58 Outstanding at March 31, 2018 7,740 15.52 5.9 $ 108 Exercisable at March 31, 2018 5,919 14.49 5.0 87 |
Summary of status of nonvested shares | Equity Awards Liability Awards Weighted Weighted Average Average Grant- Date Grant-Date Shares Fair Value Shares Fair Value (in thousands) (in thousands) Nonvested at January 1, 2018 2,457 $ 14.93 696 $ 14.69 Granted 414 35.32 169 32.77 Vested (699) (1) 16.71 (328) 14.67 Forfeited (107) 14.97 (6) 14.41 Nonvested at March 31, 2018 2,065 18.42 531 20.47 (1) As of March 31, 2018, a total of 473,110 restricted stock units were vested but not yet issued, of which 12,360 vested during the three months ended March 31, 2018. These shares have not been reflected as vested shares in this table because, in accordance with the restricted stock unit agreements, shares of common stock are not issued for vested restricted stock units until termination of employment. |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
NET INCOME PER SHARE | |
Schedule of basic and diluted income per share | Basic and diluted income per share is determined using the following information (in millions): Three months ended March 31, 2018 2017 Numerator: Basic and diluted income from continuing operations: Income from continuing operations attributable to Huntsman Corporation $ 160 $ 83 Basic and diluted net income: Net income attributable to Huntsman Corporation $ 274 $ 76 Denominator: Weighted average shares outstanding 240.8 237.4 Dilutive shares: Stock-based awards 5.1 5.1 Total weighted average shares outstanding, including dilutive shares 245.9 242.5 |
OPERATING SEGMENT INFORMATION (
OPERATING SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
OPERATING SEGMENT INFORMATION | |
Schedule of major products by reportable operating segment | Segment Products Polyurethanes MDI, PO, polyols, PG, TPU, aniline and MTBE Performance Products Amines, surfactants, LAB, maleic anhydride, other performance chemicals, EG, olefins 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 | The revenues and EBITDA for each of our reportable operating segments are as follows (dollars in millions): Three months ended March 31, 2018 2017 Revenues: Polyurethanes $ 1,222 $ 953 Performance Products 603 533 Advanced Materials 279 259 Textile Effects 200 188 Corporate and eliminations (9) (1) Total $ 2,295 $ 1,932 Huntsman Corporation: Segment adjusted EBITDA(1): Polyurethanes $ 261 $ 144 Performance Products 102 84 Advanced Materials 59 54 Textile Effects 26 21 Corporate and other(2) (43) (43) Total 405 260 Reconciliation of adjusted EBITDA to net income: Interest expense—continuing operations (27) (48) Interest expense—discontinued operations (9) — Income tax expense—continuing operations (53) (19) Income tax expense—discontinued operations (20) (3) Depreciation and amortization—continuing operations (82) (76) Depreciation and amortization—discontinued operations — (30) Net income attributable to noncontrolling interests 76 16 Other adjustments: Business acquisition and integration expenses (1) (3) EBITDA from discontinued operations 143 26 Noncontrolling interest of discontinued operations (55) (3) Certain legal and other settlements and related expenses (7) — Amortization of pension and postretirement actuarial losses (17) (19) Restructuring, impairment and plant closing and transition costs (3) (9) Net income $ 350 $ 92 (1) 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) EBITDA from discontinued operations; (c) noncontrolling interest of discontinued operations; (d) certain legal and other settlements and related expenses; (e) amortization of pension and postretirement actuarial losses; and (f) restructuring, impairment and plant closing and transition 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, benzene sales and gains and losses on the disposition of corporate assets. |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |
OPERATING SEGMENT INFORMATION | |
Schedule of revenues and EBITDA for each of the entity's reportable operating segments and reconciliation of adjusted EBITDA to net income | Three months ended March 31, 2018 2017 Huntsman International: Segment adjusted EBITDA(1): Polyurethanes $ 261 $ 144 Performance Products 102 84 Advanced Materials 59 54 Textile Effects 26 21 Corporate and other(2) (40) (41) Total 408 262 Reconciliation of adjusted EBITDA to net income: Interest expense—continuing operations (32) (51) Interest expense—discontinued operations (9) — Income tax expense—continuing operations (52) (19) Income tax expense—discontinued operations (20) (3) Depreciation and amortization—continuing operations (81) (74) Depreciation and amortization—discontinued operations — (30) Net income attributable to noncontrolling interests 76 16 Other adjustments: Business acquisition and integration expenses (1) (3) EBITDA from discontinued operations 143 25 Noncontrolling interest of discontinued operations (55) (3) Certain legal and other settlements and related expenses (7) — Amortization of pension and postretirement actuarial losses (20) (20) Restructuring, impairment and plant closing and transition costs (3) (9) Net income $ 347 $ 91 (1) 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) EBITDA from discontinued operations; (c) noncontrolling interest of discontinued operations; (d) certain legal and other settlements and related expenses; (e) amortization of pension and postretirement actuarial losses; and (f) restructuring, impairment and plant closing and transition 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, benzene sales and gains and losses on the disposition of corporate assets. |
CONDENSED CONSOLIDATING FINAN42
CONDENSED CONSOLIDATING FINANCIAL INFORMATION - HUNTSMAN INTERNATIONAL (Tables) - HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | 3 Months Ended |
Mar. 31, 2018 | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION - HUNTSMAN INTERNATIONAL | |
CONDENSED CONSOLIDATING BALANCE SHEETS | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS AS OF MARCH 31, 2018 (In Millions) Consolidated Parent Huntsman Company Guarantors Nonguarantors Eliminations International LLC ASSETS Current assets: Cash and cash equivalents $ 63 $ — $ 381 $ — $ 444 Restricted cash — — 9 — 9 Accounts and notes receivable, net 29 110 1,229 6 1,374 Accounts receivable from affiliates 971 4,236 589 (5,403) 393 Inventories 118 223 864 (2) 1,203 Prepaid expenses 20 9 46 (7) 68 Other current assets 786 2 175 (767) 196 Current assets held for sale — — 3,060 — 3,060 Total current assets 1,987 4,580 6,353 (6,173) 6,747 Property, plant and equipment, net 459 1,101 1,555 — 3,115 Investment in unconsolidated affiliates 6,864 2,691 284 (9,555) 284 Intangible assets, net 25 — 30 — 55 Goodwill (15) 82 74 — 141 Deferred income taxes 335 — 212 (335) 212 Notes receivable from affiliates 72 582 — (654) — Other noncurrent assets 48 178 286 (1) 511 Total assets $ 9,775 $ 9,214 $ 8,794 $ (16,718) $ 11,065 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 55 $ 232 $ 667 $ 7 $ 961 Accounts payable to affiliates 4,206 518 769 (5,404) 89 Accrued liabilities 82 819 404 (774) 531 Note payable to affiliate 100 — — — 100 Current portion of debt 13 — 23 — 36 Current liabilities held for sale — — 1,721 — 1,721 Total current liabilities 4,456 1,569 3,584 (6,171) 3,438 Long-term debt 1,964 — 334 — 2,298 Notes payable to affiliates 702 — 654 (654) 702 Deferred income taxes 12 186 43 30 271 Other noncurrent liabilities 221 269 587 — 1,077 Total liabilities 7,355 2,024 5,202 (6,795) 7,786 Equity Huntsman International LLC members’ equity Members’ equity 3,639 2,210 3,765 (5,975) 3,639 (Accumulated deficit) retained earnings (28) 3,030 100 (3,130) (28) Accumulated other comprehensive (loss) income (1,191) 1,950 (1,128) (822) (1,191) Total Huntsman International LLC members’ equity 2,420 7,190 2,737 (9,927) 2,420 Noncontrolling interests in subsidiaries — — 855 4 859 Total equity 2,420 7,190 3,592 (9,923) 3,279 Total liabilities and equity $ 9,775 $ 9,214 $ 8,794 $ (16,718) $ 11,065 HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS AS OF DECEMBER 31, 2017 (In Millions) Consolidated Parent Huntsman Company Guarantors Nonguarantors Eliminations International LLC ASSETS Current assets: Cash and cash equivalents $ 74 $ — $ 394 $ — $ 468 Restricted cash — — 11 — 11 Accounts and notes receivable, net 36 94 1,120 5 1,255 Accounts receivable from affiliates 983 4,130 391 (5,131) 373 Inventories 101 210 767 (5) 1,073 Prepaid expenses 21 10 39 (11) 59 Other current assets 783 3 170 (752) 204 Current assets held for sale — — 2,880 — 2,880 Total current assets 1,998 4,447 5,772 (5,894) 6,323 Property, plant and equipment, net 461 1,119 1,515 — 3,095 Investment in unconsolidated affiliates 6,364 2,268 266 (8,632) 266 Intangible assets, net 25 — 31 — 56 Goodwill (14) 82 72 — 140 Deferred income taxes 323 — 208 (323) 208 Notes receivable from affiliates 72 569 — (641) — Other noncurrent assets 52 189 257 (1) 497 Total assets $ 9,281 $ 8,674 $ 8,121 $ (15,491) $ 10,585 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 74 $ 214 $ 652 $ 6 $ 946 Accounts payable to affiliates 4,019 485 697 (5,131) 70 Accrued liabilities 89 826 413 (762) 566 Note payable to affiliate 100 — — — 100 Current portion of debt 17 — 23 — 40 Current liabilities held for sale — — 1,692 — 1,692 Total current liabilities 4,299 1,525 3,477 (5,887) 3,414 Long-term debt 1,927 — 331 — 2,258 Notes payable to affiliates 742 — 642 (642) 742 Deferred income taxes 12 179 33 41 265 Other noncurrent liabilities 218 278 576 — 1,072 Total liabilities 7,198 1,982 5,059 (6,488) 7,751 Equity Huntsman International LLC members’ equity Members’ equity 3,616 2,216 3,641 (5,857) 3,616 (Accumulated deficit) retained earnings (270) 2,749 (116) (2,633) (270) Accumulated other comprehensive (loss) income (1,263) 1,727 (1,211) (516) (1,263) Total Huntsman International LLC members' equity 2,083 6,692 2,314 (9,006) 2,083 Noncontrolling interests in subsidiaries — — 748 3 751 Total equity 2,083 6,692 3,062 (9,003) 2,834 Total liabilities and equity $ 9,281 $ 8,674 $ 8,121 $ (15,491) $ 10,585 |
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME THREE MONTHS ENDED MARCH 31, 2018 (In Millions) Consolidated Parent Huntsman Company Guarantors Nonguarantors Eliminations International LLC Revenues: Trade sales, services and fees, net $ 295 $ 599 $ 1,361 $ — $ 2,255 Related party sales 48 95 295 (398) 40 Total revenues 343 694 1,656 (398) 2,295 Cost of goods sold 286 580 1,289 (401) 1,754 Gross profit 57 114 367 3 541 Selling, general and administrative 58 24 109 — 191 Research and development 12 11 15 — 38 Restructuring, impairment and plant closing costs (credits) 6 — (4) — 2 Other operating expense (income), net 16 (3) (1) — 12 Operating (expense) income (35) 82 248 3 298 Interest (expense) income (33) 6 (5) — (32) Equity in income of investment in affiliates and subsidiaries 284 258 13 (542) 13 Dividend income 43 — — (43) — Other (expense) income, net (1) (1) 8 — 6 Income from continuing operations before income taxes 258 345 264 (582) 285 Income tax benefit (expense) 10 (21) (41) — (52) Income from continuing operations 268 324 223 (582) 233 Income from discontinued operations, net of tax 3 — 111 — 114 Net income 271 324 334 (582) 347 Net income attributable to noncontrolling interests — — (75) (1) (76) Net income attributable to Huntsman International LLC $ 271 $ 324 $ 259 $ (583) $ 271 Net income $ 271 $ 324 $ 334 $ (582) $ 347 Other comprehensive income 70 223 118 (306) 105 Comprehensive income attributable to noncontrolling interests — — (83) — (83) Comprehensive income attributable to Huntsman International LLC $ 341 $ 547 $ 369 $ (888) $ 369 HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME THREE MONTHS ENDED MARCH 31, 2017 (In Millions) Consolidated Parent Huntsman Company Guarantors Nonguarantors Eliminations International LLC Revenues: Trade sales, services and fees, net $ 247 $ 526 $ 1,118 $ — $ 1,891 Related party sales 57 82 260 (358) 41 Total revenues 304 608 1,378 (358) 1,932 Cost of goods sold 247 527 1,122 (356) 1,540 Gross profit 57 81 256 (2) 392 Selling, general and administrative 49 31 110 — 190 Research and development 11 10 13 — 34 Restructuring, impairment and plant closing costs 1 — 8 — 9 Other operating expense (income), net 3 (15) 6 — (6) Operating (expense) income (7) 55 119 (2) 165 Interest (expense) income (50) 6 (7) — (51) Equity in income of investment in affiliates and subsidiaries 124 95 1 (220) — Dividend income — — 1 (1) — Other income, net 1 — 3 — 4 Income from continuing operations before income taxes 68 156 117 (223) 118 Income tax benefit (expense) 14 (23) (10) — (19) Income from continuing operations 82 133 107 (223) 99 Loss from discontinued operations, net of tax (7) — (1) — (8) Net income 75 133 106 (223) 91 Net income attributable to noncontrolling interests — — (16) — (16) Net income attributable to Huntsman International LLC $ 75 $ 133 $ 90 $ (223) $ 75 Net income $ 75 $ 133 $ 106 $ (223) $ 91 Other comprehensive income 95 122 97 (215) 99 Comprehensive income attributable to noncontrolling interests — — (15) (3) (18) Comprehensive income attributable to Huntsman International LLC $ 170 $ 255 $ 188 $ (441) $ 172 |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2018 (In Millions) Consolidated Parent Huntsman Company Guarantors Nonguarantors Eliminations International LLC Net cash provided by (used in) operating activities from continuing operations $ 171 $ 22 $ (47) $ (41) $ 105 Net cash provided by operating activities from discontinued operations — — 52 — 52 Net cash provided by operating activities 171 22 5 (41) 157 Investing activities: Capital expenditures (5) (15) (35) — (55) Cash paid to consolidated affiliates (70) (1) — 71 — Acquisition of business, net of cash acquired (15) — 1 — (14) Increase in receivable from affiliate (9) — — — (9) Net cash used in investing activities from continuing operations (99) (16) (34) 71 (78) Net cash used in investing activities from discontinued operations — — (67) — (67) Net cash used in investing activities (99) (16) (101) 71 (145) Financing activities: Net repayments on overdraft facilities — — (1) — (1) Repayments of short-term debt — — (2) — (2) Borrowings on short term debt — — 2 — 2 Repayments of long-term debt — — (4) — (4) Repayments of notes payable to affiliate (40) — — — (40) Repayments of notes payable (4) — (5) — (9) Dividends paid to noncontrolling interests — — (18) — (18) Contribution from parent — 1 78 (79) — Distribution to parent — (7) — 7 — Dividends paid to parent (39) — (42) 42 (39) Proceeds from the secondary offering of P&A Business — — 44 — 44 Cash paid for expenses of the secondary offering of P&A Business — — (2) — (2) Net cash (used in) provided by financing activities (83) (6) 50 (30) (69) Effect of exchange rate changes on cash — — 16 — 16 Decrease in cash, cash equivalents and restricted cash (11) — (30) — (41) Cash, cash equivalents and restricted cash from continuing operations at beginning of period 74 — 405 — 479 Cash, cash equivalents and restricted cash from discontinued operations at beginning of period — — 238 — 238 Cash, cash equivalents and restricted cash at end of period $ 63 $ — $ 613 $ — $ 676 . HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2017 (In Millions) Consolidated Parent Huntsman Company Guarantors Nonguarantors Eliminations International LLC Net cash provided by (used in) operating activities from continuing operations $ 65 $ 16 $ (13) $ — $ 68 Net cash (used in) provided by operating activities from discontinued operations (7) — 29 — 22 Net cash provided by operating activities 58 16 16 — 90 Investing activities: Capital expenditures (8) (9) (34) — (51) Investment in affiliate (12) — — 12 — Increase in receivable in affiliate (7) — — — (7) Other, net — — 5 — 5 Net cash used in investing activities from continuing operations (27) (9) (29) 12 (53) Net cash provided by investing activities from discontinued operations — — 24 — 24 Net cash used in investing activities (27) (9) (5) 12 (29) Financing activities: Repayments of short-term debt — — (6) — (6) Borrowings on short-term debt — — 2 — 2 Repayments of long-term debt (4) — (3) — (7) Proceeds from issuance of long-term debt — — 8 — 8 Repayments of notes payable to affiliate (5) — — — (5) Proceeds from notes payable to affiliate 15 — — — 15 Dividends paid to noncontrolling interests — — (3) — (3) Contribution from noncontrolling interests — — 2 — 2 Contribution from parent — — 19 (19) — Distribution to parent — (7) — 7 — Dividends paid to parent (30) — — — (30) Net cash (used in) provided by financing activities (24) (7) 19 (12) (24) Effect of exchange rate changes on cash — — 5 — 5 Increase in cash, cash equivalents and restricted cash 7 — 35 — 42 Cash, cash equivalents and restricted cash from continuing operations at beginning of period 37 — 358 — 395 Cash, cash equivalents and restricted cash from discontinued operations at beginning of period — — 29 — 29 Cash, cash equivalents and restricted cash at end of period $ 44 $ — $ 422 $ — $ 466 |
GENERAL (Details)
GENERAL (Details) $ in Millions | Apr. 23, 2018USD ($) | Apr. 19, 2018USD ($)shares | Mar. 31, 2018USD ($)segmentshares | Feb. 07, 2018USD ($) |
GENERAL | ||||
Number of operating segments | segment | 4 | |||
Number of shares repurchased | shares | 1,822,315 | 1,685,300 | ||
Value of stock repurchased | $ 52 | $ 51 | ||
Demilec Acquisition | ||||
GENERAL | ||||
Gross paid | $ 350 | |||
Share Repurchase Program 2015 | ||||
GENERAL | ||||
Remaining amount authorized for repurchase | $ 50 | |||
Share Repurchase Program 2018 | Maximum | ||||
GENERAL | ||||
Value authorized to be repurchased | $ 400 |
RECENTLY ISSUED ACCOUNTING PR44
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Details) $ in Millions | Jan. 01, 2018USD ($) |
Adjustment | Asu 2016-01 | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | |
Cumulative effect of changes in fair value of equity investments | $ 10 |
DISCONTINUED OPERATIONS - BALAN
DISCONTINUED OPERATIONS - BALANCE SHEET (Details) - USD ($) $ in Millions | 1 Months Ended | |||
Aug. 31, 2017 | Mar. 31, 2018 | Jan. 03, 2018 | Dec. 31, 2017 | |
Venator Materials PLC | ||||
DISCONTINUED OPERATIONS | ||||
Expected period of service provided after separation | 24 months | |||
Discontinued Operations, Disposed of by Means Other than Sale | Pigments and Additives Business | ||||
Carrying amounts of major classes of assets held for sale: | ||||
Accounts receivable | $ 439 | $ 380 | ||
Inventories | 482 | 454 | ||
Other current assets | 311 | 318 | ||
Property, plant and equipment, net | 1,534 | 1,424 | ||
Deferred income taxes | 153 | 158 | ||
Other noncurrent assets | 141 | 146 | ||
Total assets held for sale | 3,060 | 2,880 | ||
Carrying amounts of major classes of liabilities held for sale: | ||||
Accounts payable | 387 | 385 | ||
Accrued liabilities | 249 | 236 | ||
Other current liabilities | 19 | 25 | ||
Long term debt | 747 | 746 | ||
Other noncurrent liabilities | 319 | 300 | ||
Total liabilities held for sale | $ 1,721 | $ 1,692 | ||
Over allotment | Venator Materials PLC | ||||
DISCONTINUED OPERATIONS | ||||
Underwriters purchased an additional shares | 1,948,955 | |||
Venator Materials PLC | ||||
DISCONTINUED OPERATIONS | ||||
Ownership interest (as a percent) | 53.00% |
DISCONTINUED OPERATIONS - OPERA
DISCONTINUED OPERATIONS - OPERATIONS DATA (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Major classes of line items constituting pretax income (loss) of discontinued operations: | ||
Income tax expense | $ (20) | $ (3) |
Income (loss) from discontinued operations, net of tax | 114 | (7) |
Net income (loss) attributable to discontinued operations | 114 | (7) |
Pigments and Additives Business | Discontinued Operations, Disposed of by Means Other than Sale | ||
Major classes of line items constituting pretax income (loss) of discontinued operations: | ||
Trade sales, services and fees, net | 627 | 543 |
Cost of goods sold | 476 | 470 |
Selling, general and administrative | 51 | 40 |
Restructuring, impairment and plant closing costs | 9 | 27 |
Business separation expenses | 9 | |
Interest expense | 9 | |
Other operating income, net | (50) | |
Other (income) loss, net | (2) | 1 |
Income (loss) from discontinued operations before taxes | 134 | (4) |
Income tax expense | (20) | (3) |
Income (loss) from discontinued operations, net of tax | 114 | (7) |
Net income attributable to noncontrolling interests | (2) | (3) |
Net income (loss) attributable to discontinued operations | 112 | (10) |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Major classes of line items constituting pretax income (loss) of discontinued operations: | ||
Income tax expense | (20) | (3) |
Income (loss) from discontinued operations, net of tax | 114 | (8) |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Pigments and Additives Business | Discontinued Operations, Disposed of by Means Other than Sale | ||
Major classes of line items constituting pretax income (loss) of discontinued operations: | ||
Trade sales, services and fees, net | 627 | 543 |
Cost of goods sold | 476 | 471 |
Selling, general and administrative | 51 | 40 |
Restructuring, impairment and plant closing costs | 9 | 27 |
Business separation expenses | 9 | |
Interest expense | 9 | |
Other operating income, net | (50) | |
Other (income) loss, net | (2) | 1 |
Income (loss) from discontinued operations before taxes | 134 | (5) |
Income tax expense | (20) | (3) |
Income (loss) from discontinued operations, net of tax | 114 | (8) |
Net income attributable to noncontrolling interests | (2) | (3) |
Net income (loss) attributable to discontinued operations | $ 112 | $ (11) |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Inventories | |||
Raw materials and supplies | $ 240 | $ 189 | |
Work in progress | 50 | 48 | |
Finished goods | 972 | 897 | |
Total | 1,262 | 1,134 | |
LIFO reserves | (59) | (61) | |
Net inventories | [1] | $ 1,203 | $ 1,073 |
Percentage of inventories recorded using the LIFO cost method | 13.00% | 12.00% | |
[1] | At March 31, 2018 and December 31, 2017, respectively, $13 and $15 of cash and cash equivalents, $9 and $11 of restricted cash, $38 and $35 of accounts and notes receivable (net), $52 and $46 of inventories, $7 each of other current assets, $265 and $283 of property, plant and equipment (net), $10 each of intangible assets (net), $57 and $43 of other noncurrent assets, $91 and $109 of accounts payable, $32 each of accrued liabilities, $22 and $21 of current portion of debt, $83 and $86 of longterm debt, and $99 and $98 of other noncurrent liabilities from consolidated variable interest entities are included in the respective balance sheet captions above. See “Note 5. Variable Interest Entities.” |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | ||
Assets and liabilities of VIE | ||||
Current assets | $ 6,385 | $ 5,979 | ||
Property, plant and equipment, net | [1] | 3,117 | 3,098 | |
Other noncurrent assets | [1] | 509 | 497 | |
Deferred income taxes | 212 | 208 | ||
Intangible assets | [1] | 55 | 56 | |
Goodwill | 141 | 140 | ||
Total assets | 10,703 | 10,244 | ||
Current liabilities | 3,283 | 3,265 | ||
Long-term debt | [1] | 2,298 | 2,258 | |
Deferred income taxes | 269 | 264 | ||
Other noncurrent liabilities | [1] | 1,084 | 1,086 | |
Total liabilities | 6,934 | 6,873 | ||
Revenues, income from continuing operations before income taxes and net cash provided by operating activities for our variable interest entities | ||||
Revenues | 2,295 | $ 1,932 | ||
Income from continuing operations before income taxes | 289 | 118 | ||
Net cash provided by operating activities | 163 | 93 | ||
Rubicon, Arabian Amines, and Sasol Huntsman | ||||
Assets and liabilities of VIE | ||||
Current assets | 120 | 114 | ||
Property, plant and equipment, net | 265 | 283 | ||
Other noncurrent assets | 134 | 116 | ||
Deferred income taxes | 33 | 33 | ||
Intangible assets | 10 | 10 | ||
Goodwill | 15 | 14 | ||
Total assets | 577 | 570 | ||
Current liabilities | 144 | 163 | ||
Long-term debt | 83 | 86 | ||
Deferred income taxes | 13 | 12 | ||
Other noncurrent liabilities | 99 | 98 | ||
Total liabilities | 339 | $ 359 | ||
Revenues, income from continuing operations before income taxes and net cash provided by operating activities for our variable interest entities | ||||
Revenues | 37 | 31 | ||
Income from continuing operations before income taxes | 9 | 4 | ||
Net cash provided by operating activities | $ 15 | $ 12 | ||
Rubicon LLC | ||||
Identification of variable interest entities through investments and transactions | ||||
Variable interest entity ownership percentage | 50.00% | |||
Arabian Amines Company | ||||
Identification of variable interest entities through investments and transactions | ||||
Variable interest entity ownership percentage | 50.00% | |||
Sasol Huntsman GmbH and Co. KG | ||||
Identification of variable interest entities through investments and transactions | ||||
Variable interest entity ownership percentage | 50.00% | |||
[1] | At March 31, 2018 and December 31, 2017, respectively, $13 and $15 of cash and cash equivalents, $9 and $11 of restricted cash, $38 and $35 of accounts and notes receivable (net), $52 and $46 of inventories, $7 each of other current assets, $265 and $283 of property, plant and equipment (net), $10 each of intangible assets (net), $57 and $43 of other noncurrent assets, $91 and $109 of accounts payable, $32 each of accrued liabilities, $22 and $21 of current portion of debt, $83 and $86 of longterm debt, and $99 and $98 of other noncurrent liabilities from consolidated variable interest entities are included in the respective balance sheet captions above. See “Note 5. Variable Interest Entities.” |
RESTRUCTURING, IMPAIRMENT AND49
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS - ACCRUED RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS BY TYPE OF COST AND INITIATIVE (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($)item | |
Accrued restructuring costs roll forward | |
Accrued liabilities at the beginning of the period | $ 53 |
Foreign currency effect on liability balance | 3 |
Accrued liabilities at the end of the period | $ 57 |
Number of positions terminated | item | 125 |
Number of positions not terminated | item | 81 |
Workforce reductions | |
Accrued restructuring costs roll forward | |
Accrued liabilities at the beginning of the period | $ 5 |
Foreign currency effect on liability balance | 1 |
Accrued liabilities at the end of the period | 5 |
Demolition and decommissioning | |
Accrued restructuring costs roll forward | |
Accrued liabilities at the beginning of the period | 2 |
Accrued liabilities at the end of the period | 1 |
Non-cancelable lease and contract termination costs | |
Accrued restructuring costs roll forward | |
Accrued liabilities at the beginning of the period | 41 |
Foreign currency effect on liability balance | 2 |
Accrued liabilities at the end of the period | 42 |
Other restructuring costs | |
Accrued restructuring costs roll forward | |
Accrued liabilities at the beginning of the period | 5 |
Accrued liabilities at the end of the period | 9 |
2017 and prior initiatives | |
Accrued restructuring costs roll forward | |
Restructuring credits | (5) |
Restructuring (credits) payments | 2 |
2017 and prior initiatives | Workforce reductions | |
Accrued restructuring costs roll forward | |
Restructuring (credits) payments | (1) |
2017 and prior initiatives | Demolition and decommissioning | |
Accrued restructuring costs roll forward | |
Restructuring (credits) payments | (1) |
2017 and prior initiatives | Non-cancelable lease and contract termination costs | |
Accrued restructuring costs roll forward | |
Restructuring (credits) payments | (1) |
2017 and prior initiatives | Other restructuring costs | |
Accrued restructuring costs roll forward | |
Restructuring credits | (5) |
Restructuring (credits) payments | 5 |
2018 initiatives | |
Accrued restructuring costs roll forward | |
Restructuring charges | 5 |
Restructuring payments | (1) |
Accrued liabilities at the end of the period | 4 |
2018 initiatives | Other restructuring costs | |
Accrued restructuring costs roll forward | |
Restructuring charges | 5 |
Restructuring payments | $ (1) |
RESTRUCTURING, IMPAIRMENT AND50
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS - ACCRUED LIABILITIES BY INITIATIVE (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Accrued liabilities by initiatives | ||
Accrued liabilities | $ 57 | $ 53 |
2016 and prior initiatives | ||
Accrued liabilities by initiatives | ||
Accrued liabilities | 51 | 51 |
2017 initiatives | ||
Accrued liabilities by initiatives | ||
Accrued liabilities | 2 | $ 2 |
2018 initiatives | ||
Accrued liabilities by initiatives | ||
Accrued liabilities | $ 4 |
RESTRUCTURING, IMPAIRMENT AND51
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS - RESERVES FOR RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Accrued restructuring costs roll forward | |
Accrued liabilities at the beginning of the period | $ 53 |
Foreign currency effect on liability balance | 3 |
Accrued liabilities at the end of the period | 57 |
Current portion of restructuring reserves | 14 |
Long-term portion of restructuring reserves | 43 |
Corporate and other | |
Accrued restructuring costs roll forward | |
Accrued liabilities at the beginning of the period | 1 |
Accrued liabilities at the end of the period | 5 |
Current portion of restructuring reserves | 5 |
Polyurethanes | Operating segments | |
Accrued restructuring costs roll forward | |
Accrued liabilities at the beginning of the period | 1 |
Performance Products | Operating segments | |
Accrued restructuring costs roll forward | |
Accrued liabilities at the beginning of the period | 1 |
Accrued liabilities at the end of the period | 1 |
Current portion of restructuring reserves | 1 |
Advanced Materials | Operating segments | |
Accrued restructuring costs roll forward | |
Accrued liabilities at the beginning of the period | 3 |
Foreign currency effect on liability balance | 1 |
Accrued liabilities at the end of the period | 4 |
Current portion of restructuring reserves | 1 |
Long-term portion of restructuring reserves | 3 |
Textile Effects | Operating segments | |
Accrued restructuring costs roll forward | |
Accrued liabilities at the beginning of the period | 47 |
Foreign currency effect on liability balance | 2 |
Accrued liabilities at the end of the period | 47 |
Current portion of restructuring reserves | 7 |
Long-term portion of restructuring reserves | 40 |
2017 and prior initiatives | |
Accrued restructuring costs roll forward | |
Restructuring credits | (5) |
Restructuring (credits) payments | 2 |
2017 and prior initiatives | Polyurethanes | Operating segments | |
Accrued restructuring costs roll forward | |
Restructuring (credits) payments | (1) |
2017 and prior initiatives | Textile Effects | Operating segments | |
Accrued restructuring costs roll forward | |
Restructuring credits | (5) |
Restructuring (credits) payments | 3 |
2018 initiatives | |
Accrued restructuring costs roll forward | |
Restructuring charges | 5 |
Restructuring payments | (1) |
Accrued liabilities at the end of the period | 4 |
2018 initiatives | Corporate and other | |
Accrued restructuring costs roll forward | |
Restructuring charges | 5 |
Restructuring payments | $ (1) |
RESTRUCTURING, IMPAIRMENT AND52
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS - CASH AND NONCASH (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Restructuring, impairment and plant closing costs | ||
Accelerated depreciation | $ 1 | |
Other non-cash credits | $ 2 | (1) |
Total restructuring, impairment and plant closing costs | 2 | 9 |
2016 and prior initiatives | ||
Restructuring, impairment and plant closing costs | ||
Restructuring charges | 3 | |
2017 and prior initiatives | ||
Restructuring, impairment and plant closing costs | ||
Restructuring credits | (5) | |
2017 initiatives | ||
Restructuring, impairment and plant closing costs | ||
Restructuring charges | $ 6 | |
2018 initiatives | ||
Restructuring, impairment and plant closing costs | ||
Restructuring charges | $ 5 |
RESTRUCTURING, IMPAIRMENT AND53
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS - NARRATIVE (Details) - Operating segments - Textile Effects - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Basel, Switzerland | ||
Restructuring, impairment and plant closing costs | ||
Restructuring credits | $ 5 | |
Workforce reductions | ||
Restructuring, impairment and plant closing costs | ||
Restructuring charges | $ 6 |
DEBT - DEBT OUTSTANDING (Detail
DEBT - DEBT OUTSTANDING (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Debt | |||
Total debt - excluding debt to affiliates | $ 2,334 | $ 2,298 | |
Total current portion of debt | [1] | 36 | 40 |
Long-term portion of debt | [1] | 2,298 | 2,258 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Total debt - excluding debt to affiliates | 2,334 | 2,298 | |
Total current portion of debt | [1] | 36 | 40 |
Long-term portion of debt | [1] | 2,298 | 2,258 |
Notes payable to affiliates-current | 100 | 100 | |
Notes payable to affiliates-noncurrent | 702 | 742 | |
Total debt | 3,136 | 3,140 | |
Accounts receivable programs | |||
Debt | |||
Total debt - excluding debt to affiliates | 184 | 180 | |
Accounts receivable programs | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Total debt - excluding debt to affiliates | 184 | 180 | |
Senior notes | |||
Debt | |||
Total debt - excluding debt to affiliates | 1,964 | 1,927 | |
Senior notes | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Total debt - excluding debt to affiliates | 1,964 | 1,927 | |
Variable interest entities | |||
Debt | |||
Total debt - excluding debt to affiliates | 105 | 107 | |
Variable interest entities | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Total debt - excluding debt to affiliates | 105 | 107 | |
Other | |||
Debt | |||
Total debt - excluding debt to affiliates | 81 | 84 | |
Other | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Total debt - excluding debt to affiliates | $ 81 | $ 84 | |
[1] | At March 31, 2018 and December 31, 2017, respectively, $13 and $15 of cash and cash equivalents, $9 and $11 of restricted cash, $38 and $35 of accounts and notes receivable (net), $52 and $46 of inventories, $7 each of other current assets, $265 and $283 of property, plant and equipment (net), $10 each of intangible assets (net), $57 and $43 of other noncurrent assets, $91 and $109 of accounts payable, $32 each of accrued liabilities, $22 and $21 of current portion of debt, $83 and $86 of longterm debt, and $99 and $98 of other noncurrent liabilities from consolidated variable interest entities are included in the respective balance sheet captions above. See “Note 5. Variable Interest Entities.” |
DEBT - ISSUANCE COSTS (Details)
DEBT - ISSUANCE COSTS (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
DEBT | ||
Debt issuance costs | $ 10 | $ 11 |
DEBT - SENIOR CREDIT FACILITIES
DEBT - SENIOR CREDIT FACILITIES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Apr. 23, 2018 | |
Revolving Facility | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Debt | ||
Maximum revolving credit facility | $ 650 | |
Principal Outstanding | 0 | |
Amount of letter of credit and bank guarantees issued and outstanding | $ 9 | |
Revolving Facility | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | LIBOR | ||
Debt | ||
Basis spread (as a percent) | 2.50% | |
U.S. A/R Program Maturing April 2020 | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Debt | ||
Amount of letter of credit and bank guarantees issued and outstanding | $ 5 | |
Demilec Acquisition | Revolving Facility | ||
Debt | ||
Principal amount of debt | $ 275 | |
Demilec Acquisition | U.S. A/R Program Maturing April 2020 | ||
Debt | ||
Principal amount of debt | $ 75 |
DEBT - ACCOUNT RECEIVABLE PROGR
DEBT - ACCOUNT RECEIVABLE PROGRAMS (Details) - HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES € in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2018EUR (€) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Debt | |||
Debt outstanding | $ 3,136 | $ 3,140 | |
Accounts receivable programs | |||
Debt | |||
Accounts receivable pledged as collateral | 415 | $ 334 | |
U.S. A/R Program Maturing April 2020 | |||
Debt | |||
Debt outstanding | 90 | ||
Maximum Funding Availability | 250 | ||
Amount of letter of credit and bank guarantees issued and outstanding | 5 | ||
EU A/R Program Maturing April 2020 | |||
Debt | |||
Debt outstanding | € 76 | 94 | |
Maximum Funding Availability | € 150 | $ 186 | |
USD LIBOR or CP | U.S. A/R Program Maturing April 2020 | |||
Debt | |||
Basis spread (as a percent) | 0.95% | ||
GDP LIBOR, USD LIBOR, or EURIBOR | EU A/R Program Maturing April 2020 | |||
Debt | |||
Basis spread (as a percent) | 1.30% |
DEBT - INTERCOMPANY NOTES AND O
DEBT - INTERCOMPANY NOTES AND OTHER (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Debt | ||
Loan to subsidiary | $ 802 | |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Debt | ||
Notes payable to affiliates-current | $ 100 | $ 100 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | U.S. A/R Program | ||
Debt | ||
Reduction in applicable margin on borrowings (as a percent) | 0.10% | |
Maximum | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | U.S. A/R Program | ||
Debt | ||
Reduction in applicable margin on borrowings (as a percent) | 0.25% | |
Revolving Facility | Maximum | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Debt | ||
Debt instrument senior secured debt covenant leverage ratio | 3.75 |
DERIVATIVE INSTRUMENTS AND HE59
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Aug. 31, 2017USD ($) | Nov. 30, 2014EUR (€)item | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2009 | Mar. 31, 2018EUR (€) | Mar. 31, 2018USD ($) | Nov. 30, 2014USD ($)item | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||
Notional Amounts | € 585 | $ 725 | ||||||
Amount of gain (loss) recognized on the hedge of net investments | $ (24) | |||||||
Forward foreign currency contracts | ||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||
Notional Amounts | 126 | |||||||
Maximum maturity period of spot or forward exchange rate contracts | 1 year | |||||||
Twelve-year interest rate contract entered in year 2009 | Non Designated Hedge Instrument | Arabian Amines Company | ||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||
Hedging period of interest rate contract | 12 years | |||||||
Notional Amounts | 14 | |||||||
Fair value of the hedge | $ 1 | |||||||
Additional (reduction of) interest expense due to changes in the fair value of the hedges | $ 0 | $ 0 | ||||||
Twelve-year interest rate contract entered in year 2009 | Non Designated Hedge Instrument | Arabian Amines Company | LIBOR | ||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||
Variable rate basis | LIBOR | |||||||
Fixed percentage to be paid under the hedge | 5.02% | 5.02% | ||||||
Cross Currency Interest Rate Contracts | Designated as Hedging Instrument | ||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||
Notional Amounts | € 161 | $ 200 | ||||||
U.S. dollar interest payments to be received twice each year | $ 5 | |||||||
Equivalent annual rate of interest receivable (as a percent) | 5.125% | 5.125% | ||||||
U.S. dollar interest payments to be made twice each year | € | € 3 | |||||||
Equivalent annual rate of interest payable (as a percent) | 3.60% | 3.60% | ||||||
Proceeds from termination | $ 7 | |||||||
Five years cross currency interest rate contract | Designated as Hedging Instrument | ||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||
Number of derivative instruments held | item | 2 | 2 | ||||||
Term of cross currency interest rate contract | 5 years | |||||||
Eight years cross currency interest rate contract | Designated as Hedging Instrument | ||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||
Number of derivative instruments held | item | 1 | 1 | ||||||
Term of cross currency interest rate contract | 8 years |
FAIR VALUE - FAIR VALUES OF FIN
FAIR VALUE - FAIR VALUES OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Carrying Amount | ||
Fair values of financial instruments | ||
Non-qualified employee benefit plan investments | $ 24 | $ 33 |
Long-term debt (including current portion) | (2,334) | (2,298) |
Carrying Amount | Interest rate contracts | ||
Fair values of financial instruments | ||
Derivative contracts - liabilities | (1) | (1) |
Estimated Fair Value | ||
Fair values of financial instruments | ||
Non-qualified employee benefit plan investments | 24 | 33 |
Long-term debt (including current portion) | (2,483) | (2,483) |
Estimated Fair Value | Interest rate contracts | ||
Fair values of financial instruments | ||
Derivative contracts - liabilities | $ (1) | $ (1) |
FAIR VALUE - ASSETS AND LIABILI
FAIR VALUE - ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS (Details) - Recurring basis - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Liabilities: | ||
Transfers from Levels 1 to 2 within the fair value hierarchy, assets | $ 0 | $ 0 |
Transfers from Levels 1 and 2 within the fair value hierarchy, liabilities | 0 | 0 |
Transfers from Levels 2 to 1 within the fair value hierarchy, assets | 0 | 0 |
Transfers from Levels 2 and 1 within the fair value hierarchy, liabilities | 0 | 0 |
Interest rate contracts | ||
Liabilities: | ||
Total liabilities | (1) | (1) |
Non-qualified employee benefit plan investments | ||
Assets: | ||
Equity Securities, FV-NI | 24 | 33 |
Quoted prices in active markets for identical assets (Level 1) | Non-qualified employee benefit plan investments | ||
Assets: | ||
Equity Securities, FV-NI | 24 | 33 |
Significant other observable inputs (Level 2) | Interest rate contracts | ||
Liabilities: | ||
Total liabilities | $ (1) | $ (1) |
FAIR VALUE - INSTRUMENTS MEASUR
FAIR VALUE - INSTRUMENTS MEASURED AT FAIR VALUE ON A RECURRING BASIS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AND INSTRUMENTS MEASURED AT FAIR VALUE ON A NON-RECURRING BASIS (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($)instrument | Mar. 31, 2017USD ($) | |
Reconciliation of beginning and ending balances for assets measured at fair value on a recurring basis | ||
Number of instruments categorized as Level 3 | instrument | 0 | |
Total (losses) gains: | ||
Impairment of long-lived assets | $ 0 | $ 0 |
Cross Currency Interest Rate Contracts | ||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||
Balance at beginning of period | 29 | |
Total (losses) gains: | ||
Included in earnings | 0 | |
Balance at end of period | $ 29 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Disaggregation of revenue | |
Total revenues | $ 2,295 |
MDI Urethanes | |
Disaggregation of revenue | |
Total revenues | 1,085 |
MTBE | |
Disaggregation of revenue | |
Total revenues | 137 |
Differentiated | |
Disaggregation of revenue | |
Total revenues | 539 |
Upstream | |
Disaggregation of revenue | |
Total revenues | 64 |
Specialty | |
Disaggregation of revenue | |
Total revenues | 236 |
Non-specialty | |
Disaggregation of revenue | |
Total revenues | 43 |
Textile Chemicals and Dyes and Digital Inks | |
Disaggregation of revenue | |
Total revenues | 200 |
U.S. and Canada | |
Disaggregation of revenue | |
Total revenues | 778 |
Europe | |
Disaggregation of revenue | |
Total revenues | 600 |
Asia Pacific | |
Disaggregation of revenue | |
Total revenues | 591 |
Rest of world | |
Disaggregation of revenue | |
Total revenues | 326 |
Operating segments | Polyurethanes | |
Disaggregation of revenue | |
Total revenues | 1,222 |
Operating segments | Polyurethanes | MDI Urethanes | |
Disaggregation of revenue | |
Total revenues | 1,085 |
Operating segments | Polyurethanes | MTBE | |
Disaggregation of revenue | |
Total revenues | 137 |
Operating segments | Polyurethanes | U.S. and Canada | |
Disaggregation of revenue | |
Total revenues | 357 |
Operating segments | Polyurethanes | Europe | |
Disaggregation of revenue | |
Total revenues | 340 |
Operating segments | Polyurethanes | Asia Pacific | |
Disaggregation of revenue | |
Total revenues | 299 |
Operating segments | Polyurethanes | Rest of world | |
Disaggregation of revenue | |
Total revenues | 226 |
Operating segments | Performance Products | |
Disaggregation of revenue | |
Total revenues | 603 |
Operating segments | Performance Products | Differentiated | |
Disaggregation of revenue | |
Total revenues | 539 |
Operating segments | Performance Products | Upstream | |
Disaggregation of revenue | |
Total revenues | 64 |
Operating segments | Performance Products | U.S. and Canada | |
Disaggregation of revenue | |
Total revenues | 343 |
Operating segments | Performance Products | Europe | |
Disaggregation of revenue | |
Total revenues | 108 |
Operating segments | Performance Products | Asia Pacific | |
Disaggregation of revenue | |
Total revenues | 110 |
Operating segments | Performance Products | Rest of world | |
Disaggregation of revenue | |
Total revenues | 42 |
Operating segments | Advanced Materials | |
Disaggregation of revenue | |
Total revenues | 279 |
Operating segments | Advanced Materials | Specialty | |
Disaggregation of revenue | |
Total revenues | 236 |
Operating segments | Advanced Materials | Non-specialty | |
Disaggregation of revenue | |
Total revenues | 43 |
Operating segments | Advanced Materials | U.S. and Canada | |
Disaggregation of revenue | |
Total revenues | 69 |
Operating segments | Advanced Materials | Europe | |
Disaggregation of revenue | |
Total revenues | 118 |
Operating segments | Advanced Materials | Asia Pacific | |
Disaggregation of revenue | |
Total revenues | 68 |
Operating segments | Advanced Materials | Rest of world | |
Disaggregation of revenue | |
Total revenues | 24 |
Operating segments | Textile Effects | |
Disaggregation of revenue | |
Total revenues | 200 |
Operating segments | Textile Effects | Textile Chemicals and Dyes and Digital Inks | |
Disaggregation of revenue | |
Total revenues | 200 |
Operating segments | Textile Effects | U.S. and Canada | |
Disaggregation of revenue | |
Total revenues | 17 |
Operating segments | Textile Effects | Europe | |
Disaggregation of revenue | |
Total revenues | 35 |
Operating segments | Textile Effects | Asia Pacific | |
Disaggregation of revenue | |
Total revenues | 114 |
Operating segments | Textile Effects | Rest of world | |
Disaggregation of revenue | |
Total revenues | 34 |
Eliminations | |
Disaggregation of revenue | |
Total revenues | (9) |
Eliminations | U.S. and Canada | |
Disaggregation of revenue | |
Total revenues | (8) |
Eliminations | Europe | |
Disaggregation of revenue | |
Total revenues | $ (1) |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Components of net periodic benefit cost | ||
Amortization of actuarial loss | $ 17 | $ 19 |
Contributions to pension and other postretirement benefit plans | 25 | 11 |
Expected contributions to pension and other postretirement benefit plans during remainder of 2017 | 73 | |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Components of net periodic benefit cost | ||
Amortization of actuarial loss | 20 | 20 |
Defined Benefit Plans | ||
Components of net periodic benefit cost | ||
Service cost | 17 | 15 |
Interest cost | 20 | 20 |
Expected return on plan assets | (43) | (38) |
Amortization of prior service credit | (2) | (2) |
Amortization of actuarial loss | 18 | 18 |
Settlement loss | 2 | |
Net periodic benefit cost | 12 | 13 |
Defined Benefit Plans | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Components of net periodic benefit cost | ||
Service cost | 17 | 15 |
Interest cost | 20 | 20 |
Expected return on plan assets | (43) | (38) |
Amortization of prior service credit | (2) | (2) |
Amortization of actuarial loss | 19 | 19 |
Settlement loss | 2 | |
Net periodic benefit cost | 13 | 14 |
Other Postretirement Benefit Plans | ||
Components of net periodic benefit cost | ||
Service cost | 1 | 1 |
Interest cost | 1 | 1 |
Amortization of prior service credit | (1) | (2) |
Amortization of actuarial loss | 1 | |
Net periodic benefit cost | 1 | 1 |
Other Postretirement Benefit Plans | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Components of net periodic benefit cost | ||
Service cost | 1 | 1 |
Interest cost | 1 | 1 |
Amortization of prior service credit | (1) | (2) |
Amortization of actuarial loss | 1 | |
Net periodic benefit cost | $ 1 | $ 1 |
HUNTSMAN CORPORATION STOCKHOL65
HUNTSMAN CORPORATION STOCKHOLDERS’ EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | ||
Apr. 19, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Feb. 07, 2018 | |
SHARE REPURCHASE PROGRAM | ||||
Number of shares repurchased | 1,822,315 | 1,685,300 | ||
Value of stock repurchased | $ 52 | $ 51 | ||
DIVIDENDS ON COMMON STOCK | ||||
Cash dividends paid | $ 39 | $ 30 | ||
Cash dividends paid (in dollars per share) | $ 0.1625 | $ 0.125 | ||
Share Repurchase Program 2015 | ||||
SHARE REPURCHASE PROGRAM | ||||
Remaining amount authorized for repurchase | $ 50 | |||
Share Repurchase Program 2018 | Maximum | ||||
SHARE REPURCHASE PROGRAM | ||||
Value authorized to be repurchased | $ 400 |
OTHER COMPREHENSIVE INCOME - CO
OTHER COMPREHENSIVE INCOME - COMPONENTS AND CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS - HUNTSMAN CORPORATION (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Components of other comprehensive income | ||||
Balance at the beginning of the period | $ 3,371 | $ 1,467 | $ 1,467 | |
Revised beginning balance | 3,371 | |||
Other comprehensive income, net of tax | 103 | 97 | ||
Balance at the end of the period | 3,769 | 1,649 | 3,371 | $ 1,467 |
Total | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | (1,411) | (1,707) | (1,707) | |
Revised beginning balance | (1,421) | |||
Other comprehensive (loss) income before reclassifications, gross | 81 | 76 | ||
Tax benefit (expense) | 1 | 3 | ||
Amounts reclassified from accumulated other comprehensive loss, gross | 22 | 19 | ||
Tax benefit (expense) | (1) | (1) | ||
Other comprehensive income, net of tax | 97 | |||
Net current-period other comprehensive income (loss) | 103 | |||
Balance at the end of the period | (1,318) | (1,610) | (1,411) | (1,707) |
Foreign currency translation adjustment | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | (249) | (459) | (459) | |
Revised beginning balance | (249) | |||
Other comprehensive (loss) income before reclassifications, gross | 83 | 74 | ||
Tax benefit (expense) | 4 | 3 | ||
Other comprehensive income, net of tax | 77 | |||
Net current-period other comprehensive income (loss) | 87 | |||
Balance at the end of the period | (162) | (382) | (249) | (459) |
Foreign currency translation adjustment, tax | 61 | 97 | 65 | 100 |
Pension and other postretirement benefits adjustments | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | (1,189) | (1,275) | (1,275) | |
Revised beginning balance | (1,189) | |||
Other comprehensive (loss) income before reclassifications, gross | (2) | |||
Amounts reclassified from accumulated other comprehensive loss, gross | 22 | 19 | ||
Tax benefit (expense) | 5 | (1) | ||
Other comprehensive income, net of tax | 18 | |||
Net current-period other comprehensive income (loss) | 25 | |||
Balance at the end of the period | (1,164) | (1,257) | (1,189) | (1,275) |
Pension and other postretirement benefits adjustments, tax | 177 | 176 | 172 | 177 |
Other comprehensive income of unconsolidated affiliates | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | 3 | 4 | 4 | |
Revised beginning balance | 3 | |||
Balance at the end of the period | 3 | 4 | 3 | 4 |
Other, net | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | 24 | 23 | 23 | |
Revised beginning balance | 14 | |||
Other comprehensive (loss) income before reclassifications, gross | 2 | |||
Tax benefit (expense) | (3) | |||
Tax benefit (expense) | (6) | |||
Other comprehensive income, net of tax | 2 | |||
Net current-period other comprehensive income (loss) | (9) | |||
Balance at the end of the period | 5 | 25 | 24 | 23 |
Amounts attributable to noncontrolling interests | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | 143 | 36 | 36 | |
Revised beginning balance | 143 | |||
Other comprehensive (loss) income before reclassifications, gross | (7) | (2) | ||
Other comprehensive income, net of tax | (2) | |||
Net current-period other comprehensive income (loss) | (7) | |||
Disposition of a portion of P and A Business | (16) | |||
Balance at the end of the period | 120 | 34 | 143 | 36 |
Accumulated other comprehensive (loss) income | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | (1,268) | (1,671) | (1,671) | |
Revised beginning balance | (1,278) | |||
Other comprehensive (loss) income before reclassifications, gross | 74 | 74 | ||
Tax benefit (expense) | 1 | 3 | ||
Amounts reclassified from accumulated other comprehensive loss, gross | 22 | 19 | ||
Tax benefit (expense) | (1) | (1) | ||
Other comprehensive income, net of tax | 80 | 95 | ||
Net current-period other comprehensive income (loss) | 96 | |||
Disposition of a portion of P and A Business | (16) | |||
Balance at the end of the period | $ (1,198) | $ (1,576) | (1,268) | $ (1,671) |
Asu 2016-01 | Total | ||||
Components of other comprehensive income | ||||
Cumulative effect of changes in fair value of equity investments | (10) | |||
Asu 2016-01 | Other, net | ||||
Components of other comprehensive income | ||||
Cumulative effect of changes in fair value of equity investments | (10) | |||
Asu 2016-01 | Accumulated other comprehensive (loss) income | ||||
Components of other comprehensive income | ||||
Cumulative effect of changes in fair value of equity investments | $ (10) |
OTHER COMPREHENSIVE INCOME - RE
OTHER COMPREHENSIVE INCOME - RECLASSIFICATION DETAILS - HUNTSMAN CORPORATION (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Pension and other postretirement benefits adjustments | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | $ 22 | $ 19 |
Income tax benefit (expense) | 5 | (1) |
Net of tax | 27 | 18 |
Prior service credit | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | (3) | (4) |
Settlement loss | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | 2 | |
Actuarial loss | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | 23 | 23 |
Actuarial loss | Discontinued Operations | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | $ 4 | $ 5 |
OTHER COMPREHENSIVE INCOME - 68
OTHER COMPREHENSIVE INCOME - COMPONENTS AND CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS - HUNTSMAN INTERNATIONAL (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Components of other comprehensive income | ||||
Other comprehensive income, net of tax | $ 103 | $ 97 | ||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | 2,834 | 936 | $ 936 | |
Revised beginning balance | 2,834 | |||
Other comprehensive income, net of tax | 105 | 99 | ||
Balance at the end of the period | 3,279 | 1,104 | 2,834 | $ 936 |
Total | ||||
Components of other comprehensive income | ||||
Other comprehensive (loss) income before reclassifications, gross | 81 | 76 | ||
Tax benefit | 1 | 3 | ||
Amounts reclassified from accumulated other comprehensive loss, gross | 22 | 19 | ||
Tax benefit (expense) | (1) | (1) | ||
Other comprehensive income, net of tax | 97 | |||
Net current-period other comprehensive income (loss) | 103 | |||
Total | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | (1,406) | (1,727) | (1,727) | |
Revised beginning balance | (1,416) | |||
Other comprehensive (loss) income before reclassifications, gross | 80 | 77 | ||
Tax benefit | 3 | 2 | ||
Amounts reclassified from accumulated other comprehensive loss, gross | 22 | 21 | ||
Tax benefit (expense) | (1) | |||
Other comprehensive income, net of tax | 99 | |||
Net current-period other comprehensive income (loss) | 105 | |||
Balance at the end of the period | (1,311) | (1,628) | (1,406) | (1,727) |
Foreign currency translation adjustment | ||||
Components of other comprehensive income | ||||
Other comprehensive (loss) income before reclassifications, gross | 83 | 74 | ||
Tax benefit | 4 | 3 | ||
Other comprehensive income, net of tax | 77 | |||
Net current-period other comprehensive income (loss) | 87 | |||
Foreign currency translation adjustment, tax | 61 | 97 | 65 | 100 |
Foreign currency translation adjustment | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | (252) | (462) | (462) | |
Revised beginning balance | (252) | |||
Other comprehensive (loss) income before reclassifications, gross | 81 | 75 | ||
Tax benefit | 4 | 2 | ||
Other comprehensive income, net of tax | 77 | |||
Net current-period other comprehensive income (loss) | 85 | |||
Balance at the end of the period | (167) | (385) | (252) | (462) |
Foreign currency translation adjustment, tax | 48 | 84 | 51 | 86 |
Pension and other postretirement benefits adjustments | ||||
Components of other comprehensive income | ||||
Other comprehensive (loss) income before reclassifications, gross | (2) | |||
Amounts reclassified from accumulated other comprehensive loss, gross | 22 | 19 | ||
Tax benefit (expense) | 5 | (1) | ||
Other comprehensive income, net of tax | 18 | |||
Net current-period other comprehensive income (loss) | 25 | |||
Pension and other postretirement benefits adjustments, tax | 177 | 176 | 172 | 177 |
Pension and other postretirement benefits adjustments | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | (1,174) | (1,286) | (1,286) | |
Revised beginning balance | (1,174) | |||
Other comprehensive (loss) income before reclassifications, gross | (2) | |||
Amounts reclassified from accumulated other comprehensive loss, gross | 22 | 21 | ||
Tax benefit (expense) | 5 | (1) | ||
Other comprehensive income, net of tax | 20 | |||
Net current-period other comprehensive income (loss) | 25 | |||
Balance at the end of the period | (1,149) | (1,266) | (1,174) | (1,286) |
Pension and other postretirement benefits adjustments, tax | 204 | 204 | 199 | 205 |
Other comprehensive income of unconsolidated affiliates | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | 3 | 4 | 4 | |
Revised beginning balance | 3 | |||
Other comprehensive (loss) income before reclassifications, gross | 1 | |||
Net current-period other comprehensive income (loss) | 1 | |||
Balance at the end of the period | 4 | 4 | 3 | 4 |
Other, net | ||||
Components of other comprehensive income | ||||
Other comprehensive (loss) income before reclassifications, gross | 2 | |||
Tax benefit | (3) | |||
Tax benefit (expense) | (6) | |||
Other comprehensive income, net of tax | 2 | |||
Net current-period other comprehensive income (loss) | (9) | |||
Other, net | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | 17 | 17 | 17 | |
Revised beginning balance | 7 | |||
Other comprehensive (loss) income before reclassifications, gross | 2 | |||
Tax benefit | (1) | |||
Tax benefit (expense) | (5) | |||
Other comprehensive income, net of tax | 2 | |||
Net current-period other comprehensive income (loss) | (6) | |||
Balance at the end of the period | 1 | 19 | 17 | 17 |
Amounts attributable to noncontrolling interests | ||||
Components of other comprehensive income | ||||
Other comprehensive (loss) income before reclassifications, gross | (7) | (2) | ||
Other comprehensive income, net of tax | (2) | |||
Net current-period other comprehensive income (loss) | (7) | |||
Disposition of a portion of P and A Business | (16) | |||
Amounts attributable to noncontrolling interests | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | 143 | 36 | 36 | |
Revised beginning balance | 143 | |||
Other comprehensive (loss) income before reclassifications, gross | (7) | (2) | ||
Other comprehensive income, net of tax | (2) | |||
Net current-period other comprehensive income (loss) | (7) | |||
Disposition of a portion of P and A Business | (16) | |||
Balance at the end of the period | 120 | 34 | 143 | 36 |
Accumulated other comprehensive (loss) income | ||||
Components of other comprehensive income | ||||
Other comprehensive (loss) income before reclassifications, gross | 74 | 74 | ||
Tax benefit | 1 | 3 | ||
Amounts reclassified from accumulated other comprehensive loss, gross | 22 | 19 | ||
Tax benefit (expense) | (1) | (1) | ||
Other comprehensive income, net of tax | 80 | 95 | ||
Net current-period other comprehensive income (loss) | 96 | |||
Disposition of a portion of P and A Business | (16) | |||
Accumulated other comprehensive (loss) income | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | (1,263) | (1,691) | (1,691) | |
Revised beginning balance | (1,273) | |||
Other comprehensive (loss) income before reclassifications, gross | 73 | 75 | ||
Tax benefit | 3 | 2 | ||
Amounts reclassified from accumulated other comprehensive loss, gross | 22 | 21 | ||
Tax benefit (expense) | (1) | |||
Other comprehensive income, net of tax | 82 | 97 | ||
Net current-period other comprehensive income (loss) | 98 | |||
Disposition of a portion of P and A Business | (16) | |||
Balance at the end of the period | $ (1,191) | $ (1,594) | (1,263) | $ (1,691) |
Asu 2016-01 | Total | ||||
Components of other comprehensive income | ||||
Cumulative effect of changes in fair value of equity investments | (10) | |||
Asu 2016-01 | Total | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||
Components of other comprehensive income | ||||
Cumulative effect of changes in fair value of equity investments | (10) | |||
Asu 2016-01 | Other, net | ||||
Components of other comprehensive income | ||||
Cumulative effect of changes in fair value of equity investments | (10) | |||
Asu 2016-01 | Other, net | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||
Components of other comprehensive income | ||||
Cumulative effect of changes in fair value of equity investments | (10) | |||
Asu 2016-01 | Accumulated other comprehensive (loss) income | ||||
Components of other comprehensive income | ||||
Cumulative effect of changes in fair value of equity investments | (10) | |||
Asu 2016-01 | Accumulated other comprehensive (loss) income | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||
Components of other comprehensive income | ||||
Cumulative effect of changes in fair value of equity investments | $ (10) |
OTHER COMPREHENSIVE INCOME - 69
OTHER COMPREHENSIVE INCOME - RECLASSIFICATION DETAILS - HUNTSMAN INTERNATIONAL (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Pension and other postretirement benefits adjustments | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | $ 22 | $ 19 |
Income tax benefit (expense) | 5 | (1) |
Net of tax | 27 | 18 |
Pension and other postretirement benefits adjustments | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | 22 | 21 |
Income tax benefit (expense) | 5 | (1) |
Net of tax | 27 | 20 |
Prior service credit | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | (3) | (4) |
Prior service credit | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | (3) | (4) |
Actuarial loss | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | 23 | 23 |
Actuarial loss | Discontinued Operations | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | 4 | 5 |
Actuarial loss | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | 23 | 25 |
Actuarial loss | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Discontinued Operations | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | 4 | $ 5 |
Settlement loss | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | 2 | |
Settlement loss | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | $ 2 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - LEGAL MATTERS (Details) $ in Millions | Mar. 31, 2018USD ($) |
Indemnification Matters | |
LEGAL MATTERS | |
Accrued liability relating to the cases | $ 0 |
ENVIRONMENTAL, HEALTH AND SAF71
ENVIRONMENTAL, HEALTH AND SAFETY MATTERS (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018USD ($)item | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |
Environmental, Health, and Safety Matters | |||
Capital expenditures for EHS matters | $ 6 | $ 6 | |
Accrued environmental liabilities | 20 | $ 21 | |
Environmental liabilities, classified as accrued liabilities | 6 | 6 | |
Environmental liabilities, classified as other noncurrent liabilities | $ 14 | $ 15 | |
Maximum period for payment of remediation liabilities | 30 years | ||
Number of former facilities or third-party sites with potential claims against the entity for cleanup liabilities | item | 6 | ||
West Footscray | |||
Environmental, Health, and Safety Matters | |||
Accrued environmental liabilities | $ 14 |
STOCK-BASED COMPENSATION PLAN -
STOCK-BASED COMPENSATION PLAN - COMPENSATION COST AND STOCK OPTIONS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | May 05, 2016 | |
STOCK-BASED COMPENSATION PLAN | |||
Compensation cost from continuing operations | $ 8 | $ 9 | |
Total income tax benefit recognized in the statements of operations for stock-based compensation arrangements | $ 4 | $ 2 | |
2016 Stock Incentive Plan | |||
STOCK-BASED COMPENSATION PLAN | |||
Authorized number of shares to be granted under the Stock Incentive Plan | 8,200 | 8,200 | |
Remaining shares available for grant | 8,000 | ||
the "Prior Plan" | |||
STOCK-BASED COMPENSATION PLAN | |||
Remaining shares available for grant | 0 | ||
Stock options | |||
Weighted average of the assumptions utilized for stock options granted | |||
Dividend yield (as a percent) | 1.50% | 2.40% | |
Expected volatility (as a percent) | 55.20% | 56.90% | |
Risk-free interest rate (as a percent) | 2.60% | 2.00% | |
Expected life of stock options granted during the period | 5 years 10 months 24 days | 5 years 10 months 24 days | |
Shares | |||
Outstanding at the beginning of the period (in shares) | 7,988 | ||
Granted (in shares) | 479 | ||
Exercised (in shares) | (715) | ||
Forfeited (in shares) | (12) | ||
Outstanding at the end of the period (in shares) | 7,740 | ||
Exercisable at the end of the period (in shares) | 5,919 | ||
Weighted Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 13.99 | ||
Granted (in dollars per share) | 32.77 | ||
Exercised (in dollars per share) | 10.05 | ||
Forfeited (in dollars per share) | 13.58 | ||
Outstanding at the end of the period (in dollars per share) | 15.52 | ||
Exercisable at the end of the period (in dollars per share) | $ 14.49 | ||
Outstanding, Weighted Average Remaining Contractual Term (years) | 5 years 10 months 24 days | ||
Exercisable, Weighted Average Remaining Contractual Term (years) | 5 years | ||
Outstanding, Aggregate Intrinsic Value (in dollars) | $ 108 | ||
Exercisable, Aggregate Intrinsic Value (in dollars) | $ 87 | ||
Weighted-average grant-date fair value of stock options granted (in dollars per share) | $ 15.38 | ||
Total unrecognized compensation cost | $ 13 | ||
Weighted-average period over which cost is expected to be recognized (years) | 2 years 3 months 18 days | ||
Total intrinsic value of stock options exercised | $ 17 | $ 5 | |
Cash received from stock options exercised | 6 | 17 | |
Cash tax benefit from stock options exercised | $ 3 | 1 | |
Stock options | Maximum | |||
STOCK-BASED COMPENSATION PLAN | |||
Contractual term | 10 years | ||
Outstanding stock-based awards | |||
STOCK-BASED COMPENSATION PLAN | |||
Vesting period | 3 years | ||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
STOCK-BASED COMPENSATION PLAN | |||
Compensation cost from continuing operations | $ 7 | 8 | |
Total income tax benefit recognized in the statements of operations for stock-based compensation arrangements | $ 4 | $ 2 |
STOCK-BASED COMPENSATION PLAN73
STOCK-BASED COMPENSATION PLAN - NONVESTED SHARES (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Nonvested shares | ||
Additional information | ||
Total unrecognized compensation cost | $ 38 | |
Weighted-average period over which cost is expected to be recognized (years) | 2 years 1 month 6 days | |
Value of share awards vested | $ 22 | $ 20 |
Performance Awards | ||
STOCK-BASED COMPENSATION PLAN | ||
Weighted-average expected volatility rate | 44.30% | 45.00% |
Weighted-average risk-free interest rate (as a percent) | 2.30% | 1.50% |
Additional information | ||
Performance period | 3 years | 3 years |
Equity Awards | ||
Shares | ||
Nonvested at the beginning of the period (in shares) | 2,457,000 | |
Granted (in shares) | 414,000 | |
Vested (in shares) | (699,000) | |
Forfeited (in shares) | (107,000) | |
Nonvested at the end of the period (in shares) | 2,065,000 | |
Weighted Average Grant-Date Fair Value | ||
Nonvested at the beginning of the period (in dollars per share) | $ 14.93 | |
Granted (in dollars per share) | 35.32 | |
Vested (in dollars per share) | 16.71 | |
Forfeited (in dollars per share) | 14.97 | |
Nonvested at the end of the period (in dollars per share) | $ 18.42 | |
Liability Awards | ||
Shares | ||
Nonvested at the beginning of the period (in shares) | 696,000 | |
Granted (in shares) | 169,000 | |
Vested (in shares) | (328,000) | |
Forfeited (in shares) | (6,000) | |
Nonvested at the end of the period (in shares) | 531,000 | |
Weighted Average Grant-Date Fair Value | ||
Nonvested at the beginning of the period (in dollars per share) | $ 14.69 | |
Granted (in dollars per share) | 32.77 | |
Vested (in dollars per share) | 14.67 | |
Forfeited (in dollars per share) | 14.41 | |
Nonvested at the end of the period (in dollars per share) | $ 20.47 | |
Restricted stock units | ||
Shares | ||
Vested (in shares) | (12,360) | |
Additional information | ||
Units vested but not yet issued | 473,110 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
INCOME TAXES | ||
Net increase (decrease) in unrecognized tax benefits with a corresponding income tax expense | $ 2 | $ 2 |
Total income tax benefit recognized in the statements of operations for stock-based compensation arrangements | 4 | 2 |
Income tax expense (benefit) | $ 53 | 19 |
Effective tax rate (as a percent) | 18.00% | |
Luxembourg | ||
INCOME TAXES | ||
Release of valuation allowance | $ 9 | |
United States | ||
INCOME TAXES | ||
Total income tax benefit recognized in the statements of operations for stock-based compensation arrangements | 3 | |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
INCOME TAXES | ||
Total income tax benefit recognized in the statements of operations for stock-based compensation arrangements | 4 | 2 |
Income tax expense (benefit) | $ 52 | $ 19 |
Effective tax rate (as a percent) | 18.00% |
NET INCOME PER SHARE - BASIC AN
NET INCOME PER SHARE - BASIC AND DILUTED INCOME PER SHARE (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Basic and diluted income from continuing operations: | ||
Income from continuing operations attributable to Huntsman Corporation | $ 160 | $ 83 |
Basic and diluted net income: | ||
Net income attributable to Huntsman Corporation or Huntsman International | $ 274 | $ 76 |
Denominator: | ||
Weighted average shares outstanding | 240.8 | 237.4 |
Dilutive shares: | ||
Stock-based awards (in shares) | 5.1 | 5.1 |
Total weighted average shares outstanding, including dilutive shares | 245.9 | 242.5 |
NET INCOME PER SHARE - INFORMAT
NET INCOME PER SHARE - INFORMATION ON STOCK-BASED AWARDS (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Outstanding stock-based awards | ||
Antidilutive shares not included in the computation of income (loss) per share | ||
Weighted average equivalent shares | 0.6 | 2.2 |
OPERATING SEGMENT INFORMATION -
OPERATING SEGMENT INFORMATION - FINANCIAL INFORMATION BY SEGMENT (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($)segment | Mar. 31, 2017USD ($) | |
OPERATING SEGMENT INFORMATION | ||
Number of reportable segments | segment | 4 | |
Revenues | $ 2,295 | $ 1,932 |
Segment adjusted EBITDA | 405 | 260 |
Reconciliation of adjusted EBITDA to net income: | ||
Interest expense | (27) | (48) |
Interest expense - discontinued operations | (9) | |
Income tax benefit (expense) | (53) | (19) |
Income tax expense-discontinued operations | (20) | (3) |
Depreciation and amortization - continuing operations | (82) | (76) |
Depreciation and amortization - discontinued operations | (30) | |
Net income attributable to noncontrolling interests | 76 | 16 |
Other adjustments: | ||
Business acquisition and integration expenses | (1) | (3) |
EBITDA from discontinued operations | 143 | 26 |
Noncontrolling interest of discontinued operations | (55) | (3) |
Certain legal and other settlements and related expenses | (7) | |
Amortization of pension and postretirement actuarial losses | (17) | (19) |
Restructuring, impairment and plant closing and transition costs | (3) | (9) |
Net income | 350 | 92 |
Operating segments | Polyurethanes | ||
OPERATING SEGMENT INFORMATION | ||
Revenues | 1,222 | 953 |
Segment adjusted EBITDA | 261 | 144 |
Operating segments | Performance Products | ||
OPERATING SEGMENT INFORMATION | ||
Revenues | 603 | 533 |
Segment adjusted EBITDA | 102 | 84 |
Operating segments | Advanced Materials | ||
OPERATING SEGMENT INFORMATION | ||
Revenues | 279 | 259 |
Segment adjusted EBITDA | 59 | 54 |
Operating segments | Textile Effects | ||
OPERATING SEGMENT INFORMATION | ||
Revenues | 200 | 188 |
Segment adjusted EBITDA | 26 | 21 |
Corporate and eliminations | ||
OPERATING SEGMENT INFORMATION | ||
Revenues | (9) | (1) |
Corporate and other | ||
OPERATING SEGMENT INFORMATION | ||
Segment adjusted EBITDA | (43) | (43) |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
OPERATING SEGMENT INFORMATION | ||
Revenues | 2,295 | 1,932 |
Segment adjusted EBITDA | 408 | 262 |
Reconciliation of adjusted EBITDA to net income: | ||
Interest expense | (32) | (51) |
Interest expense - discontinued operations | (9) | |
Income tax benefit (expense) | (52) | (19) |
Income tax expense-discontinued operations | (20) | (3) |
Depreciation and amortization - continuing operations | (81) | (74) |
Depreciation and amortization - discontinued operations | (30) | |
Net income attributable to noncontrolling interests | 76 | 16 |
Other adjustments: | ||
Business acquisition and integration expenses | (1) | (3) |
EBITDA from discontinued operations | 143 | 25 |
Noncontrolling interest of discontinued operations | (55) | (3) |
Certain legal and other settlements and related expenses | (7) | |
Amortization of pension and postretirement actuarial losses | (20) | (20) |
Restructuring, impairment and plant closing and transition costs | (3) | (9) |
Net income | 347 | 91 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Operating segments | Polyurethanes | ||
OPERATING SEGMENT INFORMATION | ||
Segment adjusted EBITDA | 261 | 144 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Operating segments | Performance Products | ||
OPERATING SEGMENT INFORMATION | ||
Segment adjusted EBITDA | 102 | 84 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Operating segments | Advanced Materials | ||
OPERATING SEGMENT INFORMATION | ||
Segment adjusted EBITDA | 59 | 54 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Operating segments | Textile Effects | ||
OPERATING SEGMENT INFORMATION | ||
Segment adjusted EBITDA | 26 | 21 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Corporate and other | ||
OPERATING SEGMENT INFORMATION | ||
Segment adjusted EBITDA | $ (40) | $ (41) |
CONDENSED CONSOLIDATING FINAN78
CONDENSED CONSOLIDATING FINANCIAL INFORMATION - HUNTSMAN INTERNATIONAL - CONDENSED CONSOLIDATING BALANCE SHEETS (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Current assets: | |||||
Cash and cash equivalents | [1] | $ 444 | $ 470 | ||
Restricted cash | [1] | 9 | 11 | ||
Accounts and notes receivable, net | [1] | 1,374 | 1,256 | ||
Accounts receivable from affiliates | 33 | 27 | |||
Inventories | [1] | 1,203 | 1,073 | ||
Prepaid expenses | 69 | 60 | |||
Other current assets | [1] | 193 | 202 | ||
Current assets held for sale | 3,060 | 2,880 | |||
Total current assets | 6,385 | 5,979 | |||
Property, plant and equipment, net | [1] | 3,117 | 3,098 | ||
Investment in unconsolidated affiliates | 284 | 266 | |||
Intangible assets, net | [1] | 55 | 56 | ||
Goodwill | 141 | 140 | |||
Deferred income taxes | 212 | 208 | |||
Other noncurrent assets | [1] | 509 | 497 | ||
Total assets | 10,703 | 10,244 | |||
Current liabilities: | |||||
Accounts payable | [1] | 961 | 946 | ||
Accounts payable to affiliates | 32 | 18 | |||
Accrued liabilities | [1] | 533 | 569 | ||
Current portion of debt | [1] | 36 | 40 | ||
Current liabilities held for sale | 1,721 | 1,692 | |||
Total current liabilities | 3,283 | 3,265 | |||
Long-term debt | [1] | 2,298 | 2,258 | ||
Deferred income taxes | 269 | 264 | |||
Other noncurrent liabilities | [1] | 1,084 | 1,086 | ||
Total liabilities | 6,934 | 6,873 | |||
Huntsman International LLC members' equity | |||||
(Accumulated deficit) retained earnings | 393 | 161 | |||
Accumulated other comprehensive (loss) income | (1,198) | (1,268) | |||
Total liabilities and equity | $ 10,703 | 10,244 | |||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||
Condensed consolidating balance sheets | |||||
Ownership interest (as a percent) | 100.00% | ||||
Current assets: | |||||
Cash and cash equivalents | [1] | $ 444 | 468 | ||
Restricted cash | [1] | 9 | 11 | ||
Accounts and notes receivable, net | [1] | 1,374 | 1,255 | ||
Accounts receivable from affiliates | 393 | 373 | |||
Inventories | [1] | 1,203 | 1,073 | ||
Prepaid expenses | 68 | 59 | |||
Other current assets | [1] | 196 | 204 | ||
Current assets held for sale | 3,060 | 2,880 | |||
Total current assets | 6,747 | 6,323 | |||
Property, plant and equipment, net | [1] | 3,115 | 3,095 | ||
Investment in unconsolidated affiliates | 284 | 266 | |||
Intangible assets, net | [1] | 55 | 56 | ||
Goodwill | 141 | 140 | |||
Deferred income taxes | 212 | 208 | |||
Other noncurrent assets | [1] | 511 | 497 | ||
Total assets | 11,065 | 10,585 | |||
Current liabilities: | |||||
Accounts payable | [1] | 961 | 946 | ||
Accounts payable to affiliates | 89 | 70 | |||
Accrued liabilities | [1] | 531 | 566 | ||
Notes payable to affiliates | 100 | 100 | |||
Current portion of debt | [1] | 36 | 40 | ||
Current liabilities held for sale | 1,721 | 1,692 | |||
Total current liabilities | 3,438 | 3,414 | |||
Long-term debt | [1] | 2,298 | 2,258 | ||
Notes payable to affiliates | 702 | 742 | |||
Deferred income taxes | 271 | 265 | |||
Other noncurrent liabilities | [1] | 1,077 | 1,072 | ||
Total liabilities | 7,786 | 7,751 | |||
Huntsman International LLC members' equity | |||||
Members' equity | 3,639 | 3,616 | |||
(Accumulated deficit) retained earnings | (28) | (270) | |||
Accumulated other comprehensive (loss) income | (1,191) | (1,263) | |||
Total Huntsman International LLC members' equity | 2,420 | 2,083 | |||
Noncontrolling interests in subsidiaries | 859 | 751 | |||
Total equity | 3,279 | 2,834 | $ 1,104 | $ 936 | |
Total liabilities and equity | 11,065 | 10,585 | |||
Reportable legal entities | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Parent | |||||
Current assets: | |||||
Cash and cash equivalents | 63 | 74 | |||
Accounts and notes receivable, net | 29 | 36 | |||
Accounts receivable from affiliates | 971 | 983 | |||
Inventories | 118 | 101 | |||
Prepaid expenses | 20 | 21 | |||
Other current assets | 786 | 783 | |||
Total current assets | 1,987 | 1,998 | |||
Property, plant and equipment, net | 459 | 461 | |||
Investment in unconsolidated affiliates | 6,864 | 6,364 | |||
Intangible assets, net | 25 | 25 | |||
Goodwill | (15) | (14) | |||
Deferred income taxes | 335 | 323 | |||
Notes receivable from affiliates | 72 | 72 | |||
Other noncurrent assets | 48 | 52 | |||
Total assets | 9,775 | 9,281 | |||
Current liabilities: | |||||
Accounts payable | 55 | 74 | |||
Accounts payable to affiliates | 4,206 | 4,019 | |||
Accrued liabilities | 82 | 89 | |||
Notes payable to affiliates | 100 | 100 | |||
Current portion of debt | 13 | 17 | |||
Total current liabilities | 4,456 | 4,299 | |||
Long-term debt | 1,964 | 1,927 | |||
Notes payable to affiliates | 702 | 742 | |||
Deferred income taxes | 12 | 12 | |||
Other noncurrent liabilities | 221 | 218 | |||
Total liabilities | 7,355 | 7,198 | |||
Huntsman International LLC members' equity | |||||
Members' equity | 3,639 | 3,616 | |||
(Accumulated deficit) retained earnings | (28) | (270) | |||
Accumulated other comprehensive (loss) income | (1,191) | (1,263) | |||
Total Huntsman International LLC members' equity | 2,420 | 2,083 | |||
Total equity | 2,420 | 2,083 | |||
Total liabilities and equity | 9,775 | 9,281 | |||
Reportable legal entities | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Guarantors | |||||
Current assets: | |||||
Accounts and notes receivable, net | 110 | 94 | |||
Accounts receivable from affiliates | 4,236 | 4,130 | |||
Inventories | 223 | 210 | |||
Prepaid expenses | 9 | 10 | |||
Other current assets | 2 | 3 | |||
Total current assets | 4,580 | 4,447 | |||
Property, plant and equipment, net | 1,101 | 1,119 | |||
Investment in unconsolidated affiliates | 2,691 | 2,268 | |||
Goodwill | 82 | 82 | |||
Notes receivable from affiliates | 582 | 569 | |||
Other noncurrent assets | 178 | 189 | |||
Total assets | 9,214 | 8,674 | |||
Current liabilities: | |||||
Accounts payable | 232 | 214 | |||
Accounts payable to affiliates | 518 | 485 | |||
Accrued liabilities | 819 | 826 | |||
Total current liabilities | 1,569 | 1,525 | |||
Deferred income taxes | 186 | 179 | |||
Other noncurrent liabilities | 269 | 278 | |||
Total liabilities | 2,024 | 1,982 | |||
Huntsman International LLC members' equity | |||||
Members' equity | 2,210 | 2,216 | |||
(Accumulated deficit) retained earnings | 3,030 | 2,749 | |||
Accumulated other comprehensive (loss) income | 1,950 | 1,727 | |||
Total Huntsman International LLC members' equity | 7,190 | 6,692 | |||
Total equity | 7,190 | 6,692 | |||
Total liabilities and equity | 9,214 | 8,674 | |||
Reportable legal entities | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Nonguarantors | |||||
Current assets: | |||||
Cash and cash equivalents | 381 | 394 | |||
Restricted cash | 9 | 11 | |||
Accounts and notes receivable, net | 1,229 | 1,120 | |||
Accounts receivable from affiliates | 589 | 391 | |||
Inventories | 864 | 767 | |||
Prepaid expenses | 46 | 39 | |||
Other current assets | 175 | 170 | |||
Current assets held for sale | 3,060 | 2,880 | |||
Total current assets | 6,353 | 5,772 | |||
Property, plant and equipment, net | 1,555 | 1,515 | |||
Investment in unconsolidated affiliates | 284 | 266 | |||
Intangible assets, net | 30 | 31 | |||
Goodwill | 74 | 72 | |||
Deferred income taxes | 212 | 208 | |||
Other noncurrent assets | 286 | 257 | |||
Total assets | 8,794 | 8,121 | |||
Current liabilities: | |||||
Accounts payable | 667 | 652 | |||
Accounts payable to affiliates | 769 | 697 | |||
Accrued liabilities | 404 | 413 | |||
Current portion of debt | 23 | 23 | |||
Current liabilities held for sale | 1,721 | 1,692 | |||
Total current liabilities | 3,584 | 3,477 | |||
Long-term debt | 334 | 331 | |||
Notes payable to affiliates | 654 | 642 | |||
Deferred income taxes | 43 | 33 | |||
Other noncurrent liabilities | 587 | 576 | |||
Total liabilities | 5,202 | 5,059 | |||
Huntsman International LLC members' equity | |||||
Members' equity | 3,765 | 3,641 | |||
(Accumulated deficit) retained earnings | 100 | (116) | |||
Accumulated other comprehensive (loss) income | (1,128) | (1,211) | |||
Total Huntsman International LLC members' equity | 2,737 | 2,314 | |||
Noncontrolling interests in subsidiaries | 855 | 748 | |||
Total equity | 3,592 | 3,062 | |||
Total liabilities and equity | 8,794 | 8,121 | |||
Eliminations | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||
Current assets: | |||||
Accounts and notes receivable, net | 6 | 5 | |||
Accounts receivable from affiliates | (5,403) | (5,131) | |||
Inventories | (2) | (5) | |||
Prepaid expenses | (7) | (11) | |||
Other current assets | (767) | (752) | |||
Total current assets | (6,173) | (5,894) | |||
Investment in unconsolidated affiliates | (9,555) | (8,632) | |||
Deferred income taxes | (335) | (323) | |||
Notes receivable from affiliates | (654) | (641) | |||
Other noncurrent assets | (1) | (1) | |||
Total assets | (16,718) | (15,491) | |||
Current liabilities: | |||||
Accounts payable | 7 | 6 | |||
Accounts payable to affiliates | (5,404) | (5,131) | |||
Accrued liabilities | (774) | (762) | |||
Total current liabilities | (6,171) | (5,887) | |||
Notes payable to affiliates | (654) | (642) | |||
Deferred income taxes | 30 | 41 | |||
Total liabilities | (6,795) | (6,488) | |||
Huntsman International LLC members' equity | |||||
Members' equity | (5,975) | (5,857) | |||
(Accumulated deficit) retained earnings | (3,130) | (2,633) | |||
Accumulated other comprehensive (loss) income | (822) | (516) | |||
Total Huntsman International LLC members' equity | (9,927) | (9,006) | |||
Noncontrolling interests in subsidiaries | 4 | 3 | |||
Total equity | (9,923) | (9,003) | |||
Total liabilities and equity | $ (16,718) | $ (15,491) | |||
[1] | At March 31, 2018 and December 31, 2017, respectively, $13 and $15 of cash and cash equivalents, $9 and $11 of restricted cash, $38 and $35 of accounts and notes receivable (net), $52 and $46 of inventories, $7 each of other current assets, $265 and $283 of property, plant and equipment (net), $10 each of intangible assets (net), $57 and $43 of other noncurrent assets, $91 and $109 of accounts payable, $32 each of accrued liabilities, $22 and $21 of current portion of debt, $83 and $86 of longterm debt, and $99 and $98 of other noncurrent liabilities from consolidated variable interest entities are included in the respective balance sheet captions above. See “Note 5. Variable Interest Entities.” |
CONDENSED CONSOLIDATING FINAN79
CONDENSED CONSOLIDATING FINANCIAL INFORMATION - HUNTSMAN INTERNATIONAL - CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed consolidating statements of operations and comprehensive loss | ||
Revenues | $ 2,295 | $ 1,932 |
Cost of goods sold | 1,755 | 1,542 |
Gross profit | 540 | 390 |
Selling, general and administrative | 192 | 192 |
Research and development | 38 | 34 |
Restructuring, impairment and plant closing (credits) costs | 2 | 9 |
Other operating expense (income), net | 12 | (7) |
Operating income | 296 | 162 |
Interest (expense) income | (27) | (48) |
Equity in income of investment in affiliates and subsidiaries | 13 | |
Other income, net | 7 | 4 |
Income from continuing operations before income taxes | 289 | 118 |
Income tax benefit (expense) | (53) | (19) |
Income from continuing operations | 236 | 99 |
(Loss) income from discontinued operations, net of tax | 114 | (7) |
Net income | 350 | 92 |
Net income attributable to noncontrolling interests | (76) | (16) |
Net income attributable to Huntsman Corporation or Huntsman International LLC | 274 | 76 |
Other comprehensive income | 103 | 97 |
Comprehensive income attributable to noncontrolling interests | (83) | (18) |
Comprehensive income attributable to Huntsman Corporation | 370 | 171 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Condensed consolidating statements of operations and comprehensive loss | ||
Revenues | 2,295 | 1,932 |
Cost of goods sold | 1,754 | 1,540 |
Gross profit | 541 | 392 |
Selling, general and administrative | 191 | 190 |
Research and development | 38 | 34 |
Restructuring, impairment and plant closing (credits) costs | 2 | 9 |
Other operating expense (income), net | 12 | (6) |
Operating income | 298 | 165 |
Interest (expense) income | (32) | (51) |
Equity in income of investment in affiliates and subsidiaries | 13 | |
Other income, net | 6 | 4 |
Income from continuing operations before income taxes | 285 | 118 |
Income tax benefit (expense) | (52) | (19) |
Income from continuing operations | 233 | 99 |
(Loss) income from discontinued operations, net of tax | 114 | (8) |
Net income | 347 | 91 |
Net income attributable to noncontrolling interests | (76) | (16) |
Net income attributable to Huntsman Corporation or Huntsman International LLC | 271 | 75 |
Other comprehensive income | 105 | 99 |
Comprehensive income attributable to noncontrolling interests | (83) | (18) |
Comprehensive income attributable to Huntsman Corporation | 369 | 172 |
Eliminations | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Condensed consolidating statements of operations and comprehensive loss | ||
Revenues | (398) | (358) |
Cost of goods sold | (401) | (356) |
Gross profit | 3 | (2) |
Operating income | 3 | (2) |
Equity in income of investment in affiliates and subsidiaries | (542) | (220) |
Dividend income | (43) | (1) |
Income from continuing operations before income taxes | (582) | (223) |
Income from continuing operations | (582) | (223) |
Net income | (582) | (223) |
Net income attributable to noncontrolling interests | (1) | |
Net income attributable to Huntsman Corporation or Huntsman International LLC | (583) | (223) |
Other comprehensive income | (306) | (215) |
Comprehensive income attributable to noncontrolling interests | (3) | |
Comprehensive income attributable to Huntsman Corporation | (888) | (441) |
Third Party Customers | ||
Condensed consolidating statements of operations and comprehensive loss | ||
Revenues | 2,255 | 1,891 |
Third Party Customers | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Condensed consolidating statements of operations and comprehensive loss | ||
Revenues | 2,255 | 1,891 |
Related Party Customers | ||
Condensed consolidating statements of operations and comprehensive loss | ||
Revenues | 40 | 41 |
Related Party Customers | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Condensed consolidating statements of operations and comprehensive loss | ||
Revenues | 40 | 41 |
Related Party Customers | Eliminations | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Condensed consolidating statements of operations and comprehensive loss | ||
Revenues | (398) | (358) |
Parent | Reportable legal entities | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Condensed consolidating statements of operations and comprehensive loss | ||
Revenues | 343 | 304 |
Cost of goods sold | 286 | 247 |
Gross profit | 57 | 57 |
Selling, general and administrative | 58 | 49 |
Research and development | 12 | 11 |
Restructuring, impairment and plant closing (credits) costs | 6 | 1 |
Other operating expense (income), net | 16 | 3 |
Operating income | (35) | (7) |
Interest (expense) income | (33) | (50) |
Equity in income of investment in affiliates and subsidiaries | 284 | 124 |
Dividend income | 43 | |
Other income, net | (1) | 1 |
Income from continuing operations before income taxes | 258 | 68 |
Income tax benefit (expense) | 10 | 14 |
Income from continuing operations | 268 | 82 |
(Loss) income from discontinued operations, net of tax | 3 | (7) |
Net income | 271 | 75 |
Net income attributable to Huntsman Corporation or Huntsman International LLC | 271 | 75 |
Other comprehensive income | 70 | 95 |
Comprehensive income attributable to Huntsman Corporation | 341 | 170 |
Parent | Third Party Customers | Reportable legal entities | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Condensed consolidating statements of operations and comprehensive loss | ||
Revenues | 295 | 247 |
Parent | Related Party Customers | Reportable legal entities | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Condensed consolidating statements of operations and comprehensive loss | ||
Revenues | 48 | 57 |
Guarantors | Reportable legal entities | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Condensed consolidating statements of operations and comprehensive loss | ||
Revenues | 694 | 608 |
Cost of goods sold | 580 | 527 |
Gross profit | 114 | 81 |
Selling, general and administrative | 24 | 31 |
Research and development | 11 | 10 |
Other operating expense (income), net | (3) | (15) |
Operating income | 82 | 55 |
Interest (expense) income | 6 | 6 |
Equity in income of investment in affiliates and subsidiaries | 258 | 95 |
Other income, net | (1) | |
Income from continuing operations before income taxes | 345 | 156 |
Income tax benefit (expense) | (21) | (23) |
Income from continuing operations | 324 | 133 |
Net income | 324 | 133 |
Net income attributable to Huntsman Corporation or Huntsman International LLC | 324 | 133 |
Other comprehensive income | 223 | 122 |
Comprehensive income attributable to Huntsman Corporation | 547 | 255 |
Guarantors | Third Party Customers | Reportable legal entities | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Condensed consolidating statements of operations and comprehensive loss | ||
Revenues | 599 | 526 |
Guarantors | Related Party Customers | Reportable legal entities | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Condensed consolidating statements of operations and comprehensive loss | ||
Revenues | 95 | 82 |
Nonguarantors | Reportable legal entities | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Condensed consolidating statements of operations and comprehensive loss | ||
Revenues | 1,656 | 1,378 |
Cost of goods sold | 1,289 | 1,122 |
Gross profit | 367 | 256 |
Selling, general and administrative | 109 | 110 |
Research and development | 15 | 13 |
Restructuring, impairment and plant closing (credits) costs | (4) | 8 |
Other operating expense (income), net | (1) | 6 |
Operating income | 248 | 119 |
Interest (expense) income | (5) | (7) |
Equity in income of investment in affiliates and subsidiaries | 13 | 1 |
Dividend income | 1 | |
Other income, net | 8 | 3 |
Income from continuing operations before income taxes | 264 | 117 |
Income tax benefit (expense) | (41) | (10) |
Income from continuing operations | 223 | 107 |
(Loss) income from discontinued operations, net of tax | 111 | (1) |
Net income | 334 | 106 |
Net income attributable to noncontrolling interests | (75) | (16) |
Net income attributable to Huntsman Corporation or Huntsman International LLC | 259 | 90 |
Other comprehensive income | 118 | 97 |
Comprehensive income attributable to noncontrolling interests | (83) | (15) |
Comprehensive income attributable to Huntsman Corporation | 369 | 188 |
Nonguarantors | Third Party Customers | Reportable legal entities | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Condensed consolidating statements of operations and comprehensive loss | ||
Revenues | 1,361 | 1,118 |
Nonguarantors | Related Party Customers | Reportable legal entities | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Condensed consolidating statements of operations and comprehensive loss | ||
Revenues | $ 295 | $ 260 |
CONDENSED CONSOLIDATING FINAN80
CONDENSED CONSOLIDATING FINANCIAL INFORMATION - HUNTSMAN INTERNATIONAL - CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed consolidating statements of cash flows | ||
Net cash provided by operating activities from continuing operations | $ 111 | $ 70 |
Net cash provided by operating activities from discontinued operations | 52 | 23 |
Net cash provided by operating activities | 163 | 93 |
Investing Activities: | ||
Capital expenditures | (55) | (51) |
Acquisition of businesses, net of cash acquired | (14) | |
Other, net | 4 | |
Net cash used in investing activities from continuing operations | (69) | (47) |
Net cash (used in) provided by investing activities from discontinued operations | (67) | 24 |
Net cash used in investing activities | (136) | (23) |
Financing activities: | ||
Net repayments on overdraft facilities | (1) | |
Repayments of short-term debt | (2) | (6) |
Borrowings on short-term debt | 2 | 2 |
Repayments of long-term debt | (4) | (7) |
Proceeds from issuance of long-term debt | 8 | |
Repayments of notes payable | (9) | (5) |
Dividends paid to noncontrolling interests | (18) | (3) |
Contribution from noncontrolling interests | 2 | |
Proceeds from the secondary offering of P&A Business | 44 | |
Cash paid for expenses of the offering of P&A Business | (2) | |
Net cash used in financing activities | (86) | (31) |
Effect of exchange rate changes on cash | 16 | 5 |
(Decrease) increase in cash, cash equivalents and restricted cash | (43) | 44 |
Cash and cash equivalents from continuing operations at beginning of period | 481 | 396 |
Cash and cash equivalents from discontinued operations at beginning of period | 238 | 29 |
Cash and cash equivalents at end of period | 676 | 469 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Condensed consolidating statements of cash flows | ||
Net cash provided by operating activities from continuing operations | 105 | 68 |
Net cash provided by operating activities from discontinued operations | 52 | 22 |
Net cash provided by operating activities | 157 | 90 |
Investing Activities: | ||
Capital expenditures | (55) | (51) |
Acquisition of businesses, net of cash acquired | (14) | |
Increase in receivable in affiliate | (9) | (7) |
Other, net | 5 | |
Net cash used in investing activities from continuing operations | (78) | (53) |
Net cash (used in) provided by investing activities from discontinued operations | (67) | 24 |
Net cash used in investing activities | (145) | (29) |
Financing activities: | ||
Net repayments on overdraft facilities | (1) | |
Repayments of short-term debt | (2) | (6) |
Borrowings on short-term debt | 2 | 2 |
Repayments of long-term debt | (4) | (7) |
Proceeds from issuance of long-term debt | 8 | |
Repayments of notes payable to affiliate | (40) | (5) |
Proceeds from notes payable to affiliate | 15 | |
Repayments of notes payable | (9) | |
Dividends paid to noncontrolling interests | (18) | (3) |
Contribution from noncontrolling interests | 2 | |
Dividends paid to parent | (39) | (30) |
Proceeds from the secondary offering of P&A Business | 44 | |
Cash paid for expenses of the offering of P&A Business | (2) | |
Net cash used in financing activities | (69) | (24) |
Effect of exchange rate changes on cash | 16 | 5 |
(Decrease) increase in cash, cash equivalents and restricted cash | (41) | 42 |
Cash and cash equivalents from continuing operations at beginning of period | 479 | 395 |
Cash and cash equivalents from discontinued operations at beginning of period | 238 | 29 |
Cash and cash equivalents at end of period | 676 | 466 |
Eliminations | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Condensed consolidating statements of cash flows | ||
Net cash provided by operating activities from continuing operations | (41) | |
Net cash provided by operating activities | (41) | |
Investing Activities: | ||
Cash paid to consolidated affiliates | 71 | |
Investment in affiliate | 12 | |
Net cash used in investing activities from continuing operations | 71 | 12 |
Net cash used in investing activities | 71 | 12 |
Financing activities: | ||
Contribution from parent | (79) | (19) |
Distribution to parent | 7 | 7 |
Dividends paid to parent | 42 | |
Net cash used in financing activities | (30) | (12) |
Parent | Reportable legal entities | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Condensed consolidating statements of cash flows | ||
Net cash provided by operating activities from continuing operations | 171 | 65 |
Net cash provided by operating activities from discontinued operations | (7) | |
Net cash provided by operating activities | 171 | 58 |
Investing Activities: | ||
Capital expenditures | (5) | (8) |
Cash paid to consolidated affiliates | (70) | |
Investment in affiliate | (12) | |
Acquisition of businesses, net of cash acquired | (15) | |
Increase in receivable in affiliate | (9) | (7) |
Net cash used in investing activities from continuing operations | (99) | (27) |
Net cash used in investing activities | (99) | (27) |
Financing activities: | ||
Repayments of long-term debt | (4) | |
Repayments of notes payable to affiliate | (40) | (5) |
Proceeds from notes payable to affiliate | 15 | |
Repayments of notes payable | (4) | |
Dividends paid to parent | (39) | (30) |
Net cash used in financing activities | (83) | (24) |
(Decrease) increase in cash, cash equivalents and restricted cash | (11) | 7 |
Cash and cash equivalents from continuing operations at beginning of period | 74 | 37 |
Cash and cash equivalents at end of period | 63 | 44 |
Guarantors | Reportable legal entities | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Condensed consolidating statements of cash flows | ||
Net cash provided by operating activities from continuing operations | 22 | 16 |
Net cash provided by operating activities | 22 | 16 |
Investing Activities: | ||
Capital expenditures | (15) | (9) |
Cash paid to consolidated affiliates | (1) | |
Net cash used in investing activities from continuing operations | (16) | (9) |
Net cash used in investing activities | (16) | (9) |
Financing activities: | ||
Contribution from parent | 1 | |
Distribution to parent | (7) | (7) |
Net cash used in financing activities | (6) | (7) |
Nonguarantors | Reportable legal entities | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Condensed consolidating statements of cash flows | ||
Net cash provided by operating activities from continuing operations | (47) | (13) |
Net cash provided by operating activities from discontinued operations | 52 | 29 |
Net cash provided by operating activities | 5 | 16 |
Investing Activities: | ||
Capital expenditures | (35) | (34) |
Acquisition of businesses, net of cash acquired | 1 | |
Other, net | 5 | |
Net cash used in investing activities from continuing operations | (34) | (29) |
Net cash (used in) provided by investing activities from discontinued operations | (67) | 24 |
Net cash used in investing activities | (101) | (5) |
Financing activities: | ||
Net repayments on overdraft facilities | (1) | |
Repayments of short-term debt | (2) | (6) |
Borrowings on short-term debt | 2 | 2 |
Repayments of long-term debt | (4) | (3) |
Proceeds from issuance of long-term debt | 8 | |
Repayments of notes payable | (5) | |
Dividends paid to noncontrolling interests | (18) | (3) |
Contribution from noncontrolling interests | 2 | |
Contribution from parent | 78 | 19 |
Dividends paid to parent | (42) | |
Proceeds from the secondary offering of P&A Business | 44 | |
Cash paid for expenses of the offering of P&A Business | (2) | |
Net cash used in financing activities | 50 | 19 |
Effect of exchange rate changes on cash | 16 | 5 |
(Decrease) increase in cash, cash equivalents and restricted cash | (30) | 35 |
Cash and cash equivalents from continuing operations at beginning of period | 405 | 358 |
Cash and cash equivalents from discontinued operations at beginning of period | 238 | 29 |
Cash and cash equivalents at end of period | $ 613 | $ 422 |