Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 22, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-32427 | |
Entity Registrant Name | Huntsman Corporation | |
Entity Address, Address Line One | 10003 Woodloch Forest Drive | |
Entity Address, City or Town | The Woodlands | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77380 | |
City Area Code | 281 | |
Local Phone Number | 719-6000 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 42-1648585 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | HUN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 220,533,935 | |
Entity Central Index Key | 0001307954 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 333-85141 | |
Entity Registrant Name | Huntsman International LLC | |
Entity Address, Address Line One | 10003 Woodloch Forest Drive | |
Entity Address, City or Town | The Woodlands | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77380 | |
City Area Code | 281 | |
Local Phone Number | 719-6000 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 87-0630358 | |
Title of 12(b) Security | NONE | |
No Trading Symbol Flag | true | |
Security Exchange Name | NONE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001089748 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | |
Current assets: | |||
Cash and cash equivalents | [1] | $ 1,594 | $ 525 |
Accounts and notes receivable (net of allowance for doubtful accounts of $22 and $19, respectively), ($252 and $221 pledged as collateral, respectively) | [1] | 1,013 | 940 |
Accounts receivable from affiliates | 14 | 13 | |
Inventories | [1] | 1,008 | 914 |
Other current assets | [1] | 145 | 155 |
Current assets held for sale | 1,208 | ||
Total current assets | 3,774 | 3,755 | |
Property, plant and equipment, net | [1] | 2,357 | 2,383 |
Investment in unconsolidated affiliates | 426 | 535 | |
Intangible assets, net | [1] | 351 | 197 |
Goodwill | 396 | 276 | |
Deferred income taxes | 287 | 292 | |
Notes receivable from affiliate | 34 | 34 | |
Operating lease right-of-use assets | 380 | 396 | |
Other noncurrent assets | [1] | 453 | 452 |
Total assets | 8,458 | 8,320 | |
Current liabilities: | |||
Accounts payable | [1] | 825 | 765 |
Accounts payable to affiliates | 31 | 57 | |
Accrued liabilities | [1] | 739 | 420 |
Current portion of debt | [1] | 134 | 212 |
Current operating lease liabilities | [1] | 45 | 42 |
Current liabilities held for sale | 512 | ||
Total current liabilities | 1,774 | 2,008 | |
Long-term debt | [1] | 2,049 | 2,177 |
Deferred income taxes | 54 | 29 | |
Noncurrent operating lease liabilities | [1] | 365 | 384 |
Other noncurrent liabilities | [1] | 833 | 898 |
Total liabilities | 5,075 | 5,496 | |
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, 258,124,697 and 257,405,496 shares issued and 219,647,609 and 224,295,868 shares outstanding, respectively | 3 | 3 | |
Additional paid-in capital | 4,034 | 4,008 | |
Treasury stock, 38,477,091 and 33,112,572 shares, respectively | (731) | (635) | |
Unearned stock-based compensation | (30) | (17) | |
Retained earnings | 1,350 | 690 | |
Accumulated other comprehensive loss | (1,383) | (1,362) | |
Total Huntsman Corporation stockholders' equity | 3,243 | 2,687 | |
Noncontrolling interests in subsidiaries | 140 | 137 | |
Total equity | 3,383 | 2,824 | |
Total liabilities and equity | 8,458 | 8,320 | |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Current assets: | |||
Cash and cash equivalents | [1] | 1,594 | 525 |
Accounts and notes receivable (net of allowance for doubtful accounts of $22 and $19, respectively), ($252 and $221 pledged as collateral, respectively) | [1] | 1,013 | 940 |
Accounts receivable from affiliates | 48 | 410 | |
Inventories | [1] | 1,008 | 914 |
Other current assets | [1] | 151 | 161 |
Current assets held for sale | 1,208 | ||
Total current assets | 3,814 | 4,158 | |
Property, plant and equipment, net | [1] | 2,357 | 2,383 |
Investment in unconsolidated affiliates | 426 | 535 | |
Intangible assets, net | [1] | 351 | 197 |
Goodwill | 396 | 276 | |
Deferred income taxes | 287 | 292 | |
Notes receivable from affiliate | 34 | 34 | |
Operating lease right-of-use assets | 380 | 396 | |
Other noncurrent assets | [1] | 453 | 452 |
Total assets | 8,498 | 8,723 | |
Current liabilities: | |||
Accounts payable | [1] | 825 | 765 |
Accounts payable to affiliates | 33 | 143 | |
Accrued liabilities | [1] | 736 | 417 |
Notes payable to affiliates | 100 | ||
Current portion of debt | [1] | 134 | 212 |
Current operating lease liabilities | [1] | 45 | 42 |
Current liabilities held for sale | 512 | ||
Total current liabilities | 1,773 | 2,191 | |
Long-term debt | [1] | 2,049 | 2,177 |
Notes payable to affiliates | 280 | ||
Deferred income taxes | 54 | 29 | |
Noncurrent operating lease liabilities | [1] | 365 | 384 |
Other noncurrent liabilities | [1] | 829 | 890 |
Total liabilities | 5,070 | 5,951 | |
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 | 3,681 | 3,675 | |
Retained earnings | 979 | 312 | |
Accumulated other comprehensive loss | (1,372) | (1,352) | |
Total Huntsman International LLC members' equity | 3,288 | 2,635 | |
Noncontrolling interests in subsidiaries | 140 | 137 | |
Total equity | 3,428 | 2,772 | |
Total liabilities and equity | $ 8,498 | $ 8,723 | |
[1] | At March 31, 2020 and December 31, 2019, respectively, $3 and nil of cash and cash equivalents, $5 and $13 of accounts and notes receivable (net), $46 and $35 of inventories, $178 and $180 of property, plant and equipment (net), $21 and $20 of other noncurrent assets, $111 and $100 of accounts payable, $11 and $10 of accrued liabilities, $32 and $36 of current portion of debt, $4 each of current operating lease liabilities, $26 and $29 of long-term debt, $12 and $11 of noncurrent operating lease liabilities and $85 and $87 of other noncurrent liabilities from consolidated variable interest entities are included in the respective balance sheet captions above. See “Note 6. Variable Interest Entities.” |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | |
Accounts and notes receivable, allowance for doubtful accounts (in dollars) | $ 22 | $ 19 | |
Accounts and notes receivable, pledged as collateral (in dollars) | $ 252 | $ 221 | |
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 | 258,124,697 | 257,405,496 | |
Common stock, shares outstanding | 219,647,609 | 224,295,868 | |
Treasury stock, shares | 38,477,091 | 33,112,572 | |
Variable Interest Entity | |||
Cash and cash equivalents | [1] | $ 1,594 | $ 525 |
Accounts and notes receivable (net) | [1] | 1,013 | 940 |
Inventories | [1] | 1,008 | 914 |
Other current assets | [1] | 145 | 155 |
Property, plant and equipment (net) | [1] | 2,357 | 2,383 |
Other noncurrent assets | [1] | 453 | 452 |
Accounts payable | [1] | 825 | 765 |
Accrued liabilities | [1] | 739 | 420 |
Current portion of debt | [1] | 134 | 212 |
Current operating lease liabilities | [1] | 45 | 42 |
Long-term debt | [1] | 2,049 | 2,177 |
Noncurrent operating lease liabilities | [1] | 365 | 384 |
Other noncurrent liabilities | [1] | 833 | 898 |
Consolidated VIE's | |||
Variable Interest Entity | |||
Cash and cash equivalents | 3 | 0 | |
Accounts and notes receivable (net) | 5 | 13 | |
Inventories | 46 | 35 | |
Property, plant and equipment (net) | 178 | 180 | |
Other noncurrent assets | 21 | 20 | |
Accounts payable | 111 | 100 | |
Accrued liabilities | 11 | 10 | |
Current portion of debt | 32 | 36 | |
Current operating lease liabilities | 4 | 4 | |
Long-term debt | 26 | 29 | |
Noncurrent operating lease liabilities | 12 | 11 | |
Other noncurrent liabilities | 85 | 87 | |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Accounts and notes receivable, allowance for doubtful accounts (in dollars) | 22 | 19 | |
Accounts and notes receivable, pledged as collateral (in dollars) | $ 252 | $ 221 | |
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 | [1] | $ 1,594 | $ 525 |
Accounts and notes receivable (net) | [1] | 1,013 | 940 |
Inventories | [1] | 1,008 | 914 |
Other current assets | [1] | 151 | 161 |
Property, plant and equipment (net) | [1] | 2,357 | 2,383 |
Other noncurrent assets | [1] | 453 | 452 |
Accounts payable | [1] | 825 | 765 |
Accrued liabilities | [1] | 736 | 417 |
Current portion of debt | [1] | 134 | 212 |
Current operating lease liabilities | [1] | 45 | 42 |
Long-term debt | [1] | 2,049 | 2,177 |
Noncurrent operating lease liabilities | [1] | 365 | 384 |
Other noncurrent liabilities | [1] | 829 | 890 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Consolidated VIE's | |||
Variable Interest Entity | |||
Cash and cash equivalents | 3 | 0 | |
Accounts and notes receivable (net) | 5 | 13 | |
Inventories | 46 | 35 | |
Property, plant and equipment (net) | 178 | 180 | |
Other noncurrent assets | 21 | 20 | |
Accounts payable | 111 | 100 | |
Accrued liabilities | 11 | 10 | |
Current portion of debt | 32 | 36 | |
Current operating lease liabilities | 4 | 4 | |
Long-term debt | 26 | 29 | |
Noncurrent operating lease liabilities | 12 | 11 | |
Other noncurrent liabilities | $ 85 | $ 87 | |
[1] | At March 31, 2020 and December 31, 2019, respectively, $3 and nil of cash and cash equivalents, $5 and $13 of accounts and notes receivable (net), $46 and $35 of inventories, $178 and $180 of property, plant and equipment (net), $21 and $20 of other noncurrent assets, $111 and $100 of accounts payable, $11 and $10 of accrued liabilities, $32 and $36 of current portion of debt, $4 each of current operating lease liabilities, $26 and $29 of long-term debt, $12 and $11 of noncurrent operating lease liabilities and $85 and $87 of other noncurrent liabilities from consolidated variable interest entities are included in the respective balance sheet captions above. See “Note 6. Variable Interest Entities.” |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues: | ||
Total revenues | $ 1,593 | $ 1,669 |
Cost of goods sold | 1,296 | 1,310 |
Gross profit | 297 | 359 |
Operating expenses: | ||
Selling, general and administrative | 199 | 207 |
Research and development | 36 | 36 |
Restructuring, impairment and plant closing costs | 3 | 1 |
Other operating expense, net | 5 | |
Total operating expenses | 243 | 244 |
Operating income | 54 | 115 |
Interest expense | (18) | (30) |
Equity in income of investment in unconsolidated affiliates | 2 | 10 |
Fair value adjustments to Venator investment | (110) | 76 |
Loss on early extinguishment of debt | (23) | |
Other income, net | 10 | 5 |
(Loss) income from continuing operations before income taxes | (62) | 153 |
Income tax expense | (7) | (45) |
(Loss) income from continuing operations | (69) | 108 |
Income from discontinued operations, net of tax | 777 | 23 |
Net income | 708 | 131 |
Net income attributable to noncontrolling interests | (3) | (12) |
Net income attributable to Huntsman Corporation or Huntsman International LLC | $ 705 | $ 119 |
Basic income per share: | ||
(Loss) income from continuing operations attributable to Huntsman Corporation common stockholders | $ (0.32) | $ 0.41 |
Income from discontinued operations attributable to Huntsman Corporation common stockholders, net of tax | 3.48 | 0.10 |
Net income attributable to Huntsman Corporation common stockholders (in dollars per share) | $ 3.16 | $ 0.51 |
Weighted average shares (in shares) | 223.2 | 233.1 |
Diluted income per share: | ||
(Loss) income from continuing operations attributable to Huntsman Corporation common stockholders | $ (0.32) | $ 0.41 |
Income from discontinued operations attributable to Huntsman Corporation common stockholders, net of tax | 3.48 | 0.10 |
Net income attributable to Huntsman Corporation common stockholders (in dollars per share) | $ 3.16 | $ 0.51 |
Weighted average shares (in shares) | 223.2 | 235.1 |
Amounts attributable to Huntsman Corporation common stockholders: | ||
(Loss) Income from continuing operations | $ (72) | $ 96 |
Income from discontinued operations, net of tax | 777 | 23 |
Net income attributable to Huntsman Corporation or Huntsman International LLC | 705 | 119 |
Third Party Customers | ||
Revenues: | ||
Total revenues | 1,549 | 1,640 |
Related Party Customers | ||
Revenues: | ||
Total revenues | 44 | 29 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Revenues: | ||
Total revenues | 1,593 | 1,669 |
Cost of goods sold | 1,296 | 1,310 |
Gross profit | 297 | 359 |
Operating expenses: | ||
Selling, general and administrative | 197 | 205 |
Research and development | 36 | 36 |
Restructuring, impairment and plant closing costs | 3 | 1 |
Other operating expense, net | 5 | |
Total operating expenses | 241 | 242 |
Operating income | 56 | 117 |
Interest expense | (20) | (35) |
Equity in income of investment in unconsolidated affiliates | 2 | 10 |
Fair value adjustments to Venator investment | (110) | 76 |
Loss on early extinguishment of debt | (23) | |
Other income, net | 9 | 4 |
(Loss) income from continuing operations before income taxes | (63) | 149 |
Income tax expense | (7) | (44) |
(Loss) income from continuing operations | (70) | 105 |
Income from discontinued operations, net of tax | 777 | 23 |
Net income | 707 | 128 |
Net income attributable to noncontrolling interests | (3) | (12) |
Net income attributable to Huntsman Corporation or Huntsman International LLC | 704 | 116 |
Amounts attributable to Huntsman Corporation common stockholders: | ||
Net income attributable to Huntsman Corporation or Huntsman International LLC | 704 | 116 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Third Party Customers | ||
Revenues: | ||
Total revenues | 1,549 | 1,640 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Related Party Customers | ||
Revenues: | ||
Total revenues | $ 44 | $ 29 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net income | $ 708 | $ 131 |
Other comprehensive income, net of tax: | ||
Foreign currency translations adjustments | (73) | 42 |
Pension and other postretirement benefits adjustments | 52 | 12 |
Other comprehensive income, net of tax | (21) | 54 |
Comprehensive income | 687 | 185 |
Comprehensive income attributable to noncontrolling interests | (3) | (14) |
Comprehensive income attributable to Huntsman Corporation | 684 | 171 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Net income | 707 | 128 |
Other comprehensive income, net of tax: | ||
Foreign currency translations adjustments | (73) | 41 |
Pension and other postretirement benefits adjustments | 53 | 13 |
Other comprehensive income, net of tax | (20) | 54 |
Comprehensive income | 687 | 182 |
Comprehensive income attributable to noncontrolling interests | (3) | (14) |
Comprehensive income attributable to Huntsman Corporation | $ 684 | $ 168 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIESMembers' equity | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIESRetained earnings | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIESAccumulated other comprehensive loss | 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 other comprehensive loss | Noncontrolling interests in subsidiaries | Total |
Balance at the beginning of the period at Dec. 31, 2018 | $ 3 | $ 3,984 | $ (427) | $ (16) | $ 292 | $ (1,316) | $ 229 | $ 2,749 | |||||
Balance (in shares) at Dec. 31, 2018 | 232,994,172 | ||||||||||||
Balance at the beginning of the period at Dec. 31, 2018 | $ 3,658 | $ (91) | $ (1,308) | $ 229 | $ 2,488 | ||||||||
Balance (in units) at Dec. 31, 2018 | 2,728 | ||||||||||||
Increase (Decrease) in Stockholders' Equity and Members' Equity | |||||||||||||
Net income | 116 | 12 | 128 | 119 | 12 | 131 | |||||||
Dividends paid to parent | (37) | (37) | |||||||||||
Other comprehensive (loss) income | 52 | 2 | 54 | 52 | 2 | 54 | |||||||
Issuance of nonvested stock awards | 16 | (16) | |||||||||||
Vesting of stock awards | 7 | 7 | |||||||||||
Vesting of stock awards (in shares) | 1,619,502 | ||||||||||||
Recognition of stock-based compensation | 2 | 4 | 6 | ||||||||||
Repurchase and cancellation of stock awards | (12) | (12) | |||||||||||
Repurchase and cancellation of stock awards (in shares) | (483,053) | ||||||||||||
Stock options exercised | 1 | 1 | |||||||||||
Stock options exercised (in shares) | 78,054 | ||||||||||||
Contribution from parent | $ 7 | 7 | |||||||||||
Treasury stock repurchased | (34) | (34) | |||||||||||
Treasury stock repurchased (in shares) | (1,525,767) | ||||||||||||
Dividends declared on common stock | (39) | (39) | |||||||||||
Balance at the end of the period at Mar. 31, 2019 | $ 3 | 4,010 | (461) | (28) | 360 | (1,264) | 243 | 2,863 | |||||
Balance (in shares) at Mar. 31, 2019 | 232,682,908 | ||||||||||||
Balance at the end of the period at Mar. 31, 2019 | $ 3,665 | (12) | (1,256) | 243 | 2,640 | ||||||||
Balance (in units) at Mar. 31, 2019 | 2,728 | ||||||||||||
Balance at the beginning of the period at Dec. 31, 2019 | $ 3 | 4,008 | (635) | (17) | 690 | (1,362) | 137 | $ 2,824 | |||||
Balance (in shares) at Dec. 31, 2019 | 224,295,868 | 224,295,868 | |||||||||||
Balance at the beginning of the period at Dec. 31, 2019 | $ 3,675 | 312 | (1,352) | 137 | $ 2,772 | ||||||||
Balance (in units) at Dec. 31, 2019 | 2,728 | 2,728 | |||||||||||
Increase (Decrease) in Stockholders' Equity and Members' Equity | |||||||||||||
Net income | 704 | 3 | $ 707 | 705 | 3 | $ 708 | |||||||
Dividends paid to parent | (37) | (37) | |||||||||||
Other comprehensive (loss) income | (20) | (20) | (21) | (21) | |||||||||
Issuance of nonvested stock awards | 18 | (18) | |||||||||||
Vesting of stock awards | 4 | 4 | |||||||||||
Vesting of stock awards (in shares) | 943,026 | ||||||||||||
Recognition of stock-based compensation | 2 | 5 | 7 | ||||||||||
Repurchase and cancellation of stock awards | (6) | (6) | |||||||||||
Repurchase and cancellation of stock awards (in shares) | (283,975) | ||||||||||||
Stock options exercised | 2 | (2) | |||||||||||
Stock options exercised (in shares) | 57,209 | ||||||||||||
Contribution from parent | $ 6 | 6 | |||||||||||
Treasury stock repurchased | (96) | $ (96) | |||||||||||
Treasury stock repurchased (in shares) | (5,364,519) | (5,364,519) | |||||||||||
Dividends declared on common stock | (37) | $ (37) | |||||||||||
Balance at the end of the period at Mar. 31, 2020 | $ 3 | $ 4,034 | $ (731) | $ (30) | $ 1,350 | $ (1,383) | $ 140 | $ 3,383 | |||||
Balance (in shares) at Mar. 31, 2020 | 219,647,609 | 219,647,609 | |||||||||||
Balance at the end of the period at Mar. 31, 2020 | $ 3,681 | $ 979 | $ (1,372) | $ 140 | $ 3,428 | ||||||||
Balance (in units) at Mar. 31, 2020 | 2,728 | 2,728 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONSOLIDATED STATEMENTS OF EQUITY | ||
Dividends declared per share (in dollars per share) | $ 0.1625 | $ 0.1625 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Activities: | ||
Net income | $ 708 | $ 131 |
Less: Income loss from discontinued operations, net of tax | (777) | (23) |
(Loss) income from continuing operations | (69) | 108 |
Adjustments to reconcile (loss) income from continuing operations to net cash provided by (used in) operating activities from continuing operations: | ||
Equity in income of investment in unconsolidated affiliates | (2) | (10) |
Unrealized losses (gains) on fair value adjustments to Venator investment | 110 | (76) |
Depreciation and amortization | 67 | 67 |
Loss on early extinguishment of debt | 23 | |
Deferred income taxes | (2) | 10 |
Stock-based compensation | 7 | 8 |
Taxes paid on sale of business | (2) | |
Other, net | 14 | 13 |
Changes in operating assets and liabilities: | ||
Accounts and notes receivable | (34) | (15) |
Inventories | (92) | (82) |
Prepaid expenses | 6 | (4) |
Other current assets | 1 | 22 |
Other noncurrent assets | (7) | (26) |
Accounts payable | 61 | (10) |
Accrued liabilities | (44) | (43) |
Other noncurrent liabilities | (54) | (25) |
Net cash used in operating activities from continuing operations | (40) | (40) |
Net cash (used in) provided by operating activities from discontinued operations | (35) | 9 |
Net cash used in operating activities | (75) | (31) |
Investing Activities: | ||
Capital expenditures | (61) | (61) |
Cash received from sale of business | 1,915 | |
Acquisition of a business, net of cash acquired | (346) | |
Cash received from forward swap contract related to the sale of investment in Venator | 16 | |
Reimbursements of capital expenditures | 3 | |
Net cash provided by (used in) investing activities from continuing operations | 1,511 | (45) |
Net cash used in investing activities from discontinued operations | (9) | |
Net cash provided by (used in) investing activities | 1,511 | (54) |
Financing Activities: | ||
Net (repayments) borrowings on revolving loan facilities | (158) | 211 |
Repayments of long-term debt | (652) | |
Proceeds from issuance of long-term debt | 742 | |
Repayments of notes payable | (32) | (7) |
Debt issuance costs paid | (6) | |
Dividends paid to noncontrolling interests | (23) | |
Dividends paid to common stockholders | (37) | (39) |
Repurchase and cancellation of stock awards | (6) | (12) |
Proceeds from issuance of common stock | 1 | |
Repurchase of common stock | (96) | (33) |
Costs of early extinguishment of debt | (21) | |
Other, net | (2) | (1) |
Net cash (used in) provided by financing activities | (354) | 183 |
Effect of exchange rate changes on cash | (13) | 6 |
Increase in cash, cash equivalents and restricted cash | 1,069 | 104 |
Cash, cash equivalents and restricted cash at beginning of period | 525 | 340 |
Cash, cash equivalents and restricted cash at end of period | 1,594 | 444 |
Supplemental cash flow information: | ||
Cash paid for interest | 5 | 26 |
Cash paid for income taxes | 36 | 14 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Operating Activities: | ||
Net income | 707 | 128 |
Less: Income loss from discontinued operations, net of tax | (777) | (23) |
(Loss) income from continuing operations | (70) | 105 |
Adjustments to reconcile (loss) income from continuing operations to net cash provided by (used in) operating activities from continuing operations: | ||
Equity in income of investment in unconsolidated affiliates | (2) | (10) |
Unrealized losses (gains) on fair value adjustments to Venator investment | 110 | (76) |
Depreciation and amortization | 67 | 67 |
Loss on early extinguishment of debt | 23 | |
Deferred income taxes | (1) | 9 |
Noncash compensation | 6 | 7 |
Taxes paid on sale of business | (2) | |
Other, net | 16 | 21 |
Changes in operating assets and liabilities: | ||
Accounts and notes receivable | (34) | (15) |
Inventories | (92) | (82) |
Prepaid expenses | 6 | (4) |
Other current assets | 21 | |
Other noncurrent assets | (7) | (26) |
Accounts payable | 59 | (15) |
Accrued liabilities | (44) | (44) |
Other noncurrent liabilities | (54) | (25) |
Net cash used in operating activities from continuing operations | (42) | (44) |
Net cash (used in) provided by operating activities from discontinued operations | (35) | 9 |
Net cash used in operating activities | (77) | (35) |
Investing Activities: | ||
Capital expenditures | (61) | (61) |
Cash received from sale of business | 1,915 | |
Acquisition of a business, net of cash acquired | (346) | |
Decrease (increase) in receivable from affiliate | 279 | (9) |
Cash received from forward swap contract related to the sale of investment in Venator | 16 | |
Reimbursements of capital expenditures | 3 | |
Net cash provided by (used in) investing activities from continuing operations | 1,790 | (54) |
Net cash used in investing activities from discontinued operations | (9) | |
Net cash provided by (used in) investing activities | 1,790 | (63) |
Financing Activities: | ||
Net (repayments) borrowings on revolving loan facilities | (158) | 211 |
Repayments of long-term debt | (652) | |
Proceeds from issuance of long-term debt | 742 | |
Repayments of notes payable to affiliate | (380) | (33) |
Repayments of notes payable | (32) | (7) |
Debt issuance costs paid | (6) | |
Dividends paid to noncontrolling interests | (23) | |
Dividends paid to parent | (36) | (37) |
Costs of early extinguishment of debt | (21) | |
Other, net | (2) | (2) |
Net cash (used in) provided by financing activities | (631) | 195 |
Effect of exchange rate changes on cash | (13) | 6 |
Increase in cash, cash equivalents and restricted cash | 1,069 | 103 |
Cash, cash equivalents and restricted cash at beginning of period | 525 | 340 |
Cash, cash equivalents and restricted cash at end of period | 1,594 | 443 |
Supplemental cash flow information: | ||
Cash paid for interest | 5 | 26 |
Cash paid for income taxes | $ 36 | $ 14 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Capital expenditures in accounts payable | $ 59 | $ 50 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Capital expenditures in accounts payable | 59 | 50 |
Stock-based compensation | $ 6 | $ 7 |
GENERAL
GENERAL | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019 for our Company and Huntsman International. Description of Businesses We are a global manufacturer of differentiated organic chemical products. We operate in four segments: Polyurethanes, Performance Products, Advanced Materials and Textile Effects. 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, durable and non-durable consumer products, digital inks, electronics, insulation 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, maleic anhydride, epoxy-based polymer formulations, textile chemicals and dyes. We currently 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, which was repaid in full during the quarter ended March 31, 2020. 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 Prior periods have been recasted to record the results of operations of our chemical intermediates businesses, which includes PO/MTBE, and our surfactants businesses (collectively, our “Chemical Intermediates Businesses”) as discontinued operations. See “Note 4. Discontinued Operations and Business Dispositions—Sale of Chemical Intermediates Businesses.” Recent Developments Sale of Chemical Intermediates Businesses On January 3, 2020, we completed the sale of our Chemical Intermediates Businesses to Indorama Ventures Holdings L.P. (“Indorama”) in a transaction valued at approximately $2 billion, comprising a cash purchase price of approximately $1.93 billion, which includes estimated adjustments to the purchase price for working capital, plus the transfer of approximately $72 million in net underfunded pension and other post-employment benefit liabilities. See “Note 4. Discontinued Operations and Business Dispositions—Sale of Chemical Intermediates Businesses.” Acquisition of Icynene-Lapolla Acquisition of CVC Thermoset Specialties 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, 2020 | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 2. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Accounting Pronouncements Adopted During 2020 In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments inform credit loss estimates. On January 1, 2020, we adopted the amendments in this ASU and the initial adoption of these amendments did not have a significant impact on our condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Accounting Pronouncements Pending Adoption in Future Periods In August 2018, the FASB issued ASU No. 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans |
BUSINESS COMBINATIONS AND ACQUI
BUSINESS COMBINATIONS AND ACQUISITIONS | 3 Months Ended |
Mar. 31, 2020 | |
BUSINESS COMBINATIONS AND ACQUISITIONS | |
BUSINESS COMBINATIONS AND ACQUISITIONS | 3. BUSINESS COMBINATIONS AND ACQUISITIONS Acquisition of Icynene-Lapolla As discussed in “Note 1. General — — Fair value of assets acquired and liabilities assumed: Cash paid for the Icynene-Lapolla Acquisition in Q1 2020 $ 353 Cash $ 7 Accounts receivable 41 Inventories 36 Prepaid expenses and other current assets 1 Property, plant and equipment, net 7 Intangible assets 165 Goodwill 130 Other noncurrent assets 3 Accounts payable (13) Accrued liabilities (10) Deferred income taxes (14) Total fair value of net assets acquired $ 353 The acquisition cost allocation is preliminary pending final determination of the fair value of assets acquired and liabilities assumed, including final valuation of property, plant and equipment, intangible assets, leases and deferred taxes. Intangible assets acquired included in this preliminary allocation consist primarily of trademarks, trade secrets and customer relationships. The applicable amortization periods are still being assessed. For purposes of this preliminary allocation of fair value, we have assigned any excess of the acquisition cost over the estimated preliminary fair value to goodwill. The estimated goodwill recognized is attributable primarily to projected future profitable growth, penetration into downstream markets, and synergies. We expect that none of the estimated goodwill arising from the acquisition will be deductible for income tax purposes. It is possible that material changes to this preliminary purchase price allocation could occur. The acquired business had revenues and net loss of $27 million and $6 million, respectively, for the period from the date of acquisition to March 31, 2020. If this acquisition were to have occurred on January 1, 2019, the following estimated pro forma revenues, net income, net income attributable to Huntsman Corporation and Huntsman International would have been reported (dollars in millions): Pro Forma (Unaudited) Three months ended March 31, 2020 2019 Revenues $ 1,623 $ 1,725 Net income 704 129 Net income attributable to Huntsman Corporation 701 117 Pro Forma (Unaudited) Three months ended March 31, 2020 2019 Revenues $ 1,623 $ 1,725 Net income 703 126 Net income attributable to Huntsman International 700 114 |
DISCONTINUED OPERATIONS AND BUS
DISCONTINUED OPERATIONS AND BUSINESS DISPOSITIONS | 3 Months Ended |
Mar. 31, 2020 | |
DISCONTINUED OPERATIONS AND BUSINESS DISPOSITIONS | |
DISCONTINUED OPERATIONS AND BUSINESS DISPOSITIONS | 4. DISCONTINUED OPERATIONS AND BUSINESS DISPOSITIONS Sale of Chemical Intermediates Businesses As discussed in “Note 1. General — — The following table reconciles the carrying amounts of major classes of assets and liabilities of discontinued operations to total assets and liabilities of discontinued operations that are classified as held for sale in our condensed consolidated balance sheets (dollars in millions): December 31, 2019 Carrying amounts of major classes of assets held for sale: Accounts receivable $ 145 Inventories 105 Total current assets Property, plant and equipment, net 720 Operating lease right-of-use assets 69 Deferred income taxes 4 Other noncurrent assets 165 Total assets held for sale(1) $ 1,208 Carrying amounts of major classes of liabilities held for sale: Accounts payable $ 152 Accrued liabilities 26 Current operating lease liabilities 20 Total current liabilities Deferred income taxes 135 Noncurrent operating lease liabilities 51 Other noncurrent liabilities 128 Total noncurrent liabilities Total liabilities held for sale(1) $ 512 (1) The assets and liabilities held for sale are classified as current as of December 31, 2019 because the sale of our Chemical Intermediates Businesses was completed on January 3, 2020. The following table reconciles major line items constituting pretax income of discontinued operations to after-tax income of discontinued operations as presented in our condensed consolidated statements of operations (dollars in millions): Three months ended March 31, 2020 2019 Major line items constituting pretax income of discontinued operations: Trade sales, services and fees, net $ 6 $ 403 Cost of goods sold 9 364 Gain on sale of the Chemical Intermediates Businesses 990 — Insurance proceeds 28 — Other expense items, net — 11 Income from discontinued operations before income taxes 1,015 28 Income tax expense (238) (5) Net income attributable to discontinued operations $ 777 $ 23 (1) Discontinued operations include our Chemical Intermediates Businesses, our Australian styrenics operations and our North American polymers and base chemicals operations for all periods presented. (2) Includes eliminations of trade sales, services and fees, net and cost of sales between continuing operations and discontinued operations. Separation and Deconsolidation of Venator In August 2017, we separated our Titanium Dioxide and Performance Additives business (the “P&A Business”) and conducted an initial public offering of ordinary shares of Venator Materials PLC (“Venator”), formerly a wholly-owned subsidiary of Huntsman. Following a series of public offerings and sales of Venator ordinary shares, beginning in December 2018, our ownership in Venator decreased to approximately 49%, and we began accounting for our remaining interest in Venator as an equity method investment using the fair value option. For the three months ended March 31, 2020 and 2019, we recorded a loss $110 million and a gain of $75 million, respectively, to record our investment in Venator at fair value. These gains and losses were recorded in “Fair value adjustments to Venator investment” on our condensed consolidated statements of operations. Summarized financial information of Venator for the three months ended March 31, 2020 and 2019 is as follows (in millions): Three months ended March 31, 2020 2019 Revenues $ 532 $ 562 Gross profit 61 76 Income (loss) from continuing operations 8 (2) Net income (loss) 8 (2) Net income (loss) attributable to Venator 7 (3) |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2020 | |
INVENTORIES | |
INVENTORIES | 5. 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, 2020 2019 Raw materials and supplies $ 182 $ 175 Work in progress 44 49 Finished goods 815 718 Total 1,041 942 LIFO reserves (33) (28) Net inventories $ 1,008 $ 914 For March 31, 2020 and December 31, 2019, approximately 8% and 9%, of inventories were recorded using the LIFO cost method, respectively. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 3 Months Ended |
Mar. 31, 2020 | |
VARIABLE INTEREST ENTITIES | |
VARIABLE INTEREST ENTITIES | 6. 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. ● Arabian Amines Company is our 50% -owned joint venture with Zamil group that manufactures products for our Performance Products segment. During the first quarter of 2020, there were no changes in our variable interest entities. Sasol-Huntsman was our 50%-owned joint venture with Sasol that owned and operated a maleic anhydride facility in Moers, Germany. On September 30, 2019, we acquired the 50% noncontrolling interest that we did not own in Sasol-Huntsman. As such, as of September 30, 2019, Sasol-Huntsman was no longer accounted for as a variable interest entity. 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, 2020, 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, 2020 and our consolidated balance sheet as of December 31, 2019 (dollars in millions): March 31, December 31, 2020 2019 Current assets $ 55 $ 50 Property, plant and equipment, net 178 180 Operating lease right-of-use assets 17 16 Other noncurrent assets 139 132 Deferred income taxes 30 30 Total assets $ 419 $ 408 Current liabilities $ 159 $ 151 Long-term debt 26 29 Noncurrent operating lease liabilities 12 11 Other noncurrent liabilities 85 87 Total liabilities $ 282 $ 278 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, 2020 and 2019 are as follows (dollars in millions): Three months ended March 31, 2020(1) 2019 Revenues $ — $ 36 Income from continuing operations before income taxes 1 9 Net cash provided by operating activities 6 31 (1) As of September 30, 2019, Sasol-Huntsman was no longer accounted for as a variable interest entity. Therefore, this financial data excludes information for Sasol-Huntsman. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2020 | |
DEBT | |
DEBT | 7. DEBT Outstanding debt, net of debt issuance costs, consisted of the following (dollars in millions): Huntsman Corporation March 31, December 31, 2020 2019 Senior Credit Facilities: Revolving facility $ — $ 40 Amounts outstanding under A/R programs 55 167 Term loan 101 103 Senior notes 1,950 1,963 Variable interest entities 58 65 Other 19 51 Total debt $ 2,183 $ 2,389 Total current portion of debt $ 134 $ 212 Long-term portion of debt 2,049 2,177 Total debt $ 2,183 $ 2,389 Huntsman International March 31, December 31, 2020 2019 Senior Credit Facilities: Revolving facility $ — $ 40 Amounts outstanding under A/R programs 55 167 Term loan 101 103 Senior notes 1,950 1,963 Variable interest entities 58 65 Other 19 51 Total debt, excluding debt to affiliates $ 2,183 $ 2,389 Total current portion of debt $ 134 $ 212 Long-term portion of debt 2,049 2,177 Total debt, excluding debt to affiliates $ 2,183 $ 2,389 Notes payable to affiliates-current — 100 Notes payable to affiliates-noncurrent — 280 Total debt $ 2,183 $ 2,769 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 have third-party debt agreements that 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. For both March 31, 2020 and December 31, 2019, the amount of debt issuance costs directly reducing the debt liability was $11 million. We record the amortization of debt issuance costs as interest expense. Revolving Credit Facility As of March 31, 2020, our $1.2 billion senior unsecured revolving credit facility (“2018 Revolving Credit Facility”) was as follows (dollars in millions): Unamortized Discounts and Committed Principal Debt Issuance Carrying Facility Amount Outstanding Costs Value Interest Rate(2) Maturity 2018 Revolving Credit Facility $ 1,200 $ — (1) $ — (1) $ — (1) USD LIBOR plus 1.50% 2023 (1) On March 31, 2020, we had an additional $7 million (U.S. dollar equivalents) of letters of credit and bank guarantees issued and outstanding under our 2018 Revolving Credit Facility. (2) Interest rates on borrowings under the 2018 Revolving Credit Facility vary based on the type of loan and Huntsman International’s debt ratings. The then applicable interest rate as of March 31, 2020 was 1.50% above LIBOR. Term Loan Credit Facility On September 24, 2019, Huntsman International entered into a 364-day A/R Programs Our U.S. accounts receivable securitization program (“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. In December 2019, we entered into amendments to our EU A/R program (the “European Amendment”) and our U.S. A/R Program (the “U.S. Amendment”). The European Amendment allowed the removal of pledged obligors related to the Chemical Intermediates Businesses sold to Indorama. The U.S. Amendment allowed the removal of pledged obligors related to the Chemical Intermediates Businesses sold to Indorama as well as reduced the maximum funding capacity from $250 million to $150 million upon completion of the sale on January 3, 2020. Information regarding our A/R Programs as of March 31, 2020 was as follows (monetary amounts in millions): Maximum Funding Amount Facility Maturity Availability(1) Outstanding Interest Rate(2) U.S. A/R Program April 2022 $ 150 $ — (3) Applicable rate plus 0.90% EU A/R Program April 2022 € 100 € 50 Applicable rate plus 1.30% (or approximately $110) (or approximately $55) (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 USD LIBOR. The applicable rate for our EU A/R Program is either GBP LIBOR, USD LIBOR or EURIBOR. (3) As of March 31, 2020, 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, 2020 and December 31, 2019, $252 million and $221 million, respectively, of accounts receivable were pledged as collateral under our A/R Programs. Notes On March 13, 2019, Huntsman International completed a $750 million offering of its 4.50% senior notes due 2029 (“2029 Senior Notes”). On March 27, 2019, Huntsman International applied the net proceeds of the offering of the 2029 Senior Notes to redeem in full $650 million in aggregate principal amount of its 4.875% senior notes due 2020 (“2020 Senior Notes”) and also paid associated costs and accrued interest of $21 million and $12 million, respectively. In addition, we recognized a loss on early extinguishment of debt of $23 million in the first quarter of 2019. The 2029 Senior Notes bear interest at 4.50% per year, payable semi-annually on May 1 and November 1, and will mature on May 1, 2029. Huntsman International may redeem the 2029 Senior Notes in whole or in part at any time prior to February 1, 2029 at a price equal to 100% of the principal amount thereof plus a “make-whole” premium and accrued and unpaid interest. Huntsman International may redeem the 2029 Senior Notes at any time, in whole or from time to time in part, on or after February 1, 2029 at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest. Note Payable from Huntsman International to Huntsman Corporation During the quarter ended March 31, 2020, our loan of $380 million to our subsidiary Huntsman International was repaid to us in full. Compliance with Covenants We believe that we are in compliance with the covenants contained in the agreements governing our material debt instruments, including our 2018 Revolving Credit Facility, our 2019 Term Loan, our A/R Programs and our notes. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 3 Months Ended |
Mar. 31, 2020 | |
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 prices. From time to time, we enter into transactions, including transactions involving derivative instruments, to manage certain of these exposures. We also hedge our net investment in certain European operations. 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, 2020, we had approximately $173 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 exposures. 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. On January 9, 2019, we entered into a six-year $17 million notional value interest rate hedge with a fixed rate of 2.66%. This swap was designated as a cash flow hedge and the effective portion of the changes in the fair value of the swap was recorded in other comprehensive income. In November 2019, we terminated this swap and paid $1 million to our counterparties. We review our non-U.S. dollar denominated debt and derivative instruments to determine the appropriate amounts designated as hedges. As of March 31, 2020, we have designated approximately €465 million (approximately $511 million) of euro-denominated debt as a hedge of our net investment. For both the three months ended March 31, 2020 and March 31, 2019, the amount recognized on the hedge of our net investment was a gain of $8 million and was recorded in other comprehensive income in our condensed consolidated statements of comprehensive income. In connection with the December 3, 2018 sale of Venator ordinary shares to Bank of America N.A., we recorded a forward swap. In February 2019, we settled this forward swap and received $16 million from the counterparty. |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2020 | |
FAIR VALUE | |
FAIR VALUE | 9. FAIR VALUE The fair values of financial instruments were as follows (dollars in millions): March 31, 2020 December 31, 2019 Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value Non-qualified employee benefit plan investments $ 19 $ 19 $ 28 $ 28 Long-term debt (including current portion) (2,183) (2,125) (2,389) (2,544) 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. We elected the fair value option to account for our equity method investment in Venator post deconsolidation. The fair value of our remaining investment in Venator reported in investment in unconsolidated affiliates is obtained through market observable pricing using prevailing market prices (Level 1). See “Note 4. Discontinued Operations and Business Dispositions—Separation and Deconsolidation of Venator.” The fair values of our non-qualified employee benefit plan investments are obtained through market observable pricing using prevailing market prices (Level 1). The estimated fair values of our long-term debt are based on quoted market prices for the identical liability when traded in an active market (Level 1). The fair value estimates presented herein are based on pertinent information available to management as of March 31, 2020 and December 31, 2019. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since March 31, 2020, and current estimates of fair value may differ significantly from the amounts presented herein. During the three months ended March 31, 2020, there were no instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3), and there were no gains or losses (realized and unrealized) included in earnings for instruments categorized as Level 3 within the fair value hierarchy. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Mar. 31, 2020 | |
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 tables disaggregate our revenue from continuing operations by major source for the three months ended March 31, 2020 (dollars in millions): Polyurethanes Performance Products Advanced Materials Textile Effects Corporate and Eliminations Total Primary Geographic Markets(1) U.S. and Canada $ 370 $ 129 $ 63 $ 17 $ (7) $ 572 Europe 245 74 101 32 (1) 451 Asia Pacific 199 70 56 103 — 428 Rest of world 74 19 21 28 — 142 $ 888 $ 292 $ 241 $ 180 $ (8) $ 1,593 Major Product Groupings MDI urethanes $ 888 $ 888 Differentiated $ 292 292 Specialty $ 211 211 Non-specialty 30 30 Textile chemicals, dyes and digital inks $ 180 180 Eliminations $ (8) (8) $ 888 $ 292 $ 241 $ 180 $ (8) $ 1,593 (1) Geographic information for revenues is based upon countries into which product is sold. The following tables disaggregate our revenue from continuing operations by major source for the three months ended March 31, 2019 (dollars in millions): Polyurethanes Performance Products Advanced Materials Textile Effects Corporate and Eliminations Total Primary Geographic Markets(1) U.S. and Canada $ 336 $ 135 $ 73 $ 17 $ (19) $ 542 Europe 270 93 121 34 2 520 Asia Pacific 237 56 61 105 — 459 Rest of world 81 16 17 33 1 148 $ 924 $ 300 $ 272 $ 189 $ (16) $ 1,669 Major Product Groupings MDI urethanes $ 924 $ 924 Differentiated $ 300 300 Specialty $ 230 230 Non-specialty 42 42 Textile chemicals, dyes and digital inks $ 189 189 Eliminations $ (16) (16) $ 924 $ 300 $ 272 $ 189 $ (16) $ 1,669 (1) Geographic information for revenues is based upon countries into which product is sold. 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 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, 2020 | |
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, 2020 and 2019 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, 2020 2019 2020 2019 Service cost $ 14 $ 13 $ — $ — Interest cost 15 20 1 1 Expected return on assets (43) (39) — — Amortization of prior service benefit (2) (2) (1) (1) Amortization of actuarial loss 20 17 — — Net periodic benefit cost $ 4 $ 9 $ — $ — Huntsman International Other Postretirement Defined Benefit Plans Benefit Plans Three months Three months ended ended March 31, March 31, 2020 2019 2020 2019 Service cost $ 14 $ 13 $ — $ — Interest cost 15 20 1 1 Expected return on assets (43) (39) — — Amortization of prior service benefit (2) (2) (1) (1) Amortization of actuarial loss 21 18 — — Net periodic benefit cost $ 5 $ 10 $ — $ — During both of the three months ended March 31, 2020 and 2019, we made contributions to our pension and other postretirement benefit plans of $20 million. During the remainder of 2020, we expect to contribute an additional amount of approximately $67 million to these plans. |
HUNTSMAN CORPORATION STOCKHOLDE
HUNTSMAN CORPORATION STOCKHOLDERS EQUITY | 3 Months Ended |
Mar. 31, 2020 | |
HUNTSMAN CORPORATION STOCKHOLDERS' EQUITY | |
HUNTSMAN CORPORATION STOCKHOLDERS' EQUITY | 12. HUNTSMAN CORPORATION STOCKHOLDERS’ EQUITY Share Repurchase Program On February 7, 2018 and on May 3, 2018, our Board of Directors authorized us to repurchase up to an additional $950 million in shares of our common stock in addition to the $50 million remaining under our September 2015 share repurchase authorization. The share repurchase program will be supported by our free cash flow generation. Repurchases may be made through the open market, including through accelerated share repurchase programs, 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, 2020, we repurchased 5,364,519 shares of our common stock for approximately $96 million, excluding commissions, under the repurchase program. Subsequent to the end of the first quarter of 2020, we elected to temporarily suspend share repurchases under our existing share repurchase program in order to enhance our liquidity position in response to COVID-19. Dividends on Common Stock During the quarters ended March 31, 2020 and March 31, 2019, we paid dividends of $37 million and $39 million, respectively, or $0.1625 per share each, to common stockholders. |
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME | 3 Months Ended |
Mar. 31, 2020 | |
OTHER COMPREHENSIVE INCOME | |
OTHER COMPREHENSIVE INCOME | 13. OTHER COMPREHENSIVE INCOME The components of other comprehensive income 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, 2020 $ (369) $ (1,031) $ 8 $ 4 $ (1,388) $ 26 $ (1,362) Other comprehensive (loss) income before reclassifications, gross (67) 8 — — (59) — (59) Tax benefit (6) — — — (6) — (6) Amounts reclassified from accumulated other comprehensive loss, gross(c) — 58 — — 58 — 58 Tax expense — (14) — — (14) — (14) Net current-period other comprehensive (loss) income (73) 52 — — (21) — (21) Ending balance, March 31, 2020 $ (442) $ (979) $ 8 $ 4 $ (1,409) $ 26 $ (1,383) (a) Amounts are net of tax of $74 and $68 as of March 31, 2020 and January 1, 2020, respectively. (b) Amounts are net of tax of $134 and $148 as of March 31, 2020 and January 1, 2020, 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, 2019 $ (371) $ (994) $ 8 $ 5 $ (1,352) $ 36 $ (1,316) Other comprehensive income before reclassifications, gross 40 — — — 40 (2) 38 Tax benefit 2 — — — 2 — 2 Amounts reclassified from accumulated other comprehensive loss, gross(c) — 15 — — 15 — 15 Tax expense — (3) — — (3) — (3) Net current-period other comprehensive income 42 12 — — 54 (2) 52 Ending balance, March 31, 2019 $ (329) $ (982) $ 8 $ 5 $ (1,298) $ 34 $ (1,264) (a) Amounts are net of tax of $69 and $71 as of March 31, 2019 and January 1, 2019, respectively. (b) Amounts are net of tax of $132 and $135 as of March 31, 2019 and January 1, 2019, respectively. (c) See table below for details about these reclassifications. Three months ended March 31, 2020 2019 Amounts reclassified Amounts reclassified Affected line item in from accumulated from accumulated the statement other other where net income Details about Accumulated Other comprehensive loss comprehensive loss is presented Comprehensive Loss Components(a): Amortization of pension and other postretirement benefits: Prior service credit $ (3) $ (3) (b) Settlement loss 41 — (c) Actuarial loss 20 18 (b)(d) 58 15 Total before tax (14) (3) Income tax expense Total reclassifications for the period $ 44 $ 12 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) In connection with the sale of our Chemical Intermediates Businesses, we recognized $41 million of pension and other post-employment benefit settlement losses during the three months ended March 31, 2020. (d) Amounts contain approximately $1 of actuarial losses related to discontinued operations for both the three months ended March 31, 2020 and 2019. Huntsman International Foreign Pension Other Other, net Total Amounts Amounts Beginning balance, January 1, 2020 $ (374) $ (1,012) $ 8 $ — $ (1,378) $ 26 $ (1,352) Other comprehensive (loss) income before reclassifications, gross (67) 8 — — (59) — (59) Tax benefit (6) — — — (6) — (6) Amounts reclassified from accumulated other comprehensive loss, gross(c) — 59 — — 59 — 59 Tax expense — (14) — — (14) — (14) Net current-period other comprehensive (loss) income (73) 53 — — (20) — (20) Ending balance, March 31, 2020 $ (447) $ (959) $ 8 $ — $ (1,398) $ 26 $ (1,372) (a) Amounts are net of tax of $61 and $55 as of March 31, 2020 and January 1, 2020 respectively. (b) Amounts are net of tax of $160 and $174 as of March 31, 2020 and January 1, 2020, 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, 2019 $ (376) $ (977) $ 8 $ 1 $ (1,344) $ 36 $ (1,308) Other comprehensive income before reclassifications, gross 40 — — — 40 (2) 38 Tax benefit 1 — — — 1 — 1 Amounts reclassified from accumulated other comprehensive loss, gross(c) — 16 — — 16 — 16 Tax expense — (3) — — (3) — (3) Net current-period other comprehensive income 41 13 — — 54 (2) 52 Ending balance, March 31, 2019 $ (335) $ (964) $ 8 $ 1 $ (1,290) $ 34 $ (1,256) (a) Amounts are net of tax of $56 and $57 as of March 31, 2019 and January 1, 2019, respectively. (b) Amounts are net of tax of $158 and $161 as of March 31, 2019 and January 1, 2019, respectively. (c) See table below for details about these reclassifications. Three months ended March 31, 2020 2019 Amounts reclassified Amounts reclassified Affected line item in from accumulated from accumulated the statement other other where net income Details about Accumulated Other comprehensive loss comprehensive loss is presented Comprehensive Loss Components(a): Amortization of pension and other postretirement benefits: Prior service credit $ (3) $ (3) (b) Settlement loss 41 — (c) Actuarial loss 21 19 (b)(d) 59 16 Total before tax (14) (3) Income tax expense Total reclassifications for the period $ 45 $ 13 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) In connection with the sale of our Chemical Intermediates Businesses, we recognized $41 million of pension and other post-employment benefit settlement losses during the three months ended March 31, 2020. (d) Amounts contain approximately $1 of actuarial losses related to discontinued operations for both the three months ended March 30, 2020 and 2019. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 14. COMMITMENTS AND CONTINGENCIES Legal Matters 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, 2020 | |
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 the three months ended March 31, 2020 and 2019, our capital expenditures for EHS matters totaled $6 million and $7 million, respectively. 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 $4 million for environmental liabilities as of both March 31, 2020 and December 31, 2019. Of these amounts, $1 million was classified as accrued liabilities in our condensed consolidated balance sheets as of both March 31, 2020 and December 31, 2019, and $3 million was classified as other noncurrent liabilities in our condensed consolidated balance sheets as of both March 31, 2020 and December 31, 2019. 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 nine 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. North Maybe Canyon 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. During the first quarter of 2020, there have been no significant developments, and, at this time, we are unable to reasonably estimate our potential liabilities at this site. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 3 Months Ended |
Mar. 31, 2020 | |
STOCK-BASED COMPENSATION PLANS | |
STOCK-BASED COMPENSATION PLANS | 16. STOCK-BASED COMPENSATION PLANS As of March 31, 2020, we had approximately 7 million shares remaining under the stock-based compensation plans 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 stock-based compensation plans for our Company and Huntsman International were as follows (dollars in millions): Three months ended March 31, 2020 2019 Huntsman Corporation compensation cost $ 7 $ 8 Huntsman International compensation cost 6 7 The total income tax benefit recognized in the condensed consolidated statements of operations for us and Huntsman International for stock-based compensation arrangements was $1 million and $5 million for the three months ended March 31, 2020 2019 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, 2020 2019 Dividend yield 3.0 % 2.9 % Expected volatility 53.1 % 54.0 % Risk-free interest rate 1.5 % 2.5 % Expected life of stock options granted during the period 5.9 years 5.9 years A summary of stock option activity under the stock-based compensation plans as of March 31, 2020 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, 2020 5,025 $ 19.08 Granted 750 21.54 Exercised (154) 12.55 Forfeited (8) 26.33 Outstanding at March 31, 2020 5,613 19.57 6.4 $ 7 Exercisable at March 31, 2020 4,141 18.31 5.4 7 The weighted-average grant-date fair value of stock options granted during the three months ended March 31, 2020 was $8.27 per option. As of March 31, 2020, there was $12 million of total unrecognized compensation cost related to nonvested stock option arrangements granted under the stock-based compensation plans. That cost is expected to be recognized over a weighted-average period of approximately 2.2 years. The total intrinsic value of stock options exercised during each of the three months ended March 31, 2020 and 2019 was approximately $1 million, respectively. Cash received from stock options exercised during the three months ended March 31, 2020 and 2019 was approximately nil and $1 million, respectively. The cash tax benefit from stock options exercised during each of the three months ended March 31, 2020 and 2019 was approximately nil. Nonvested Shares Nonvested shares granted under the stock-based compensation plans 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, 2020 and 2019, the weighted-average expected volatility rate was 34.0% and 34.6%, respectively, and the weighted average risk-free interest rate was 1.4% and 2.5%, respectively. For the performance share unit awards granted in the three months ended March 31, 2020 and 2019, 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, 2020 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, 2020 1,640 $ 24.61 427 $ 24.80 Granted 822 21.97 237 21.54 Vested (561) (1)(2) 25.21 (216) 24.66 Forfeited (2) 25.26 (4) 25.63 Nonvested at March 31, 2020 1,899 23.29 444 23.12 (1) As of March 31, 2020, a total of 422,755 restricted stock units were vested but not yet issued, of which 33,660 vested during the three months ended March 31, 2020. 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. (2) A total of 174,200 performance share unit awards are reflected in the vested shares in this table, which represents the target number of performance share unit awards for this grant and were included in the balance at December 31, 2019. During the three months ended March 31, 2020, an additional 165,489 performance share unit awards with a grant date fair value of $26.99 vested above the target in accordance the performance criteria of these awards. As of March 31, 2020, there was $34 million of total unrecognized compensation cost related to nonvested share compensation arrangements granted under the stock-based compensation plans. That cost is expected to be recognized over a weighted-average period of approximately 2.3 years. The value of share awards that vested during each of the three months ended March 31, 2020 and 2019 was $23 million. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2020 | |
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. assets Huntsman Corporation We recorded income tax expense from continuing operations of $7 million and $45 million for the three months ended March 31, 2020 and 2019, 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. The decrease in pretax income, as well as the one-time reduction in our Switzerland net deferred tax assets related to the 2019 tax rate change, resulted in lower income tax expense during the first quarter of 2020 as compared to the same period of 2019. Huntsman International Huntsman International recorded income tax expense from continuing operations of $7 million and $44 million for the three months ended March 31, 2020 and 2019, 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. The decrease in pretax income, as well as the one-time reduction in our Switzerland net deferred tax assets related to the 2019 tax rate change, resulted in lower income tax expense during the first quarter of 2020 as compared to the same period of 2019. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 3 Months Ended |
Mar. 31, 2020 | |
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 (loss) per share is determined using the following information (in millions): Three months ended March 31, 2020 2019 Numerator: Basic and diluted (loss) income from continuing operations: (Loss) income from continuing operations attributable to Huntsman Corporation $ (72) $ 96 Basic and diluted net income: Net income attributable to Huntsman Corporation $ 705 $ 119 Denominator: Weighted average shares outstanding 223.2 233.1 Dilutive shares: Stock-based awards — 2.0 Total weighted average shares outstanding, including dilutive shares 223.2 235.1 Additional stock-based awards of 5.6 million and 3.1 million weighted average equivalent shares of stock were outstanding during the three months ended March 31, 2020 and 2019, respectively. However, these stock-based awards were not included in the computation of diluted earnings per share for the three months ended March 31, 2020 and 2019 because the effect would be anti-dilutive. |
OPERATING SEGMENT INFORMATION
OPERATING SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2020 | |
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. Beginning in the third quarter of 2019, we reported the results of our Chemical Intermediates Businesses as discontinued operations in our condensed consolidated financial statements for all periods presented. See “Note 4. Discontinued Operations and Business Dispositions—Sale of Chemical Intermediates Businesses.” The major products of each reportable operating segment are as follows: Segment Products Polyurethanes MDI, polyols, PG, TPU and aniline Performance Products Specialty amines, ethyleneamines, maleic anhydride and technology licenses Advanced Materials Basic liquid and solid epoxy resins; specialty resin compounds; cross-linking, matting and curing agents; epoxy, acrylic and polyurethane-based formulations Textile Effects Textile chemicals, dyes and digital inks Sales between segments are generally recognized at external market prices and are eliminated in consolidation. Adjusted EBITDA is presented as a measure of the financial performance of our global business units and for reporting the results of our operating segments. The adjusted EBITDA of our reportable operating segments excludes items that principally apply to our Company as a whole. The revenues and adjusted EBITDA from continuing operations for each of our reportable operating segments are as follows (dollars in millions): Three months ended March 31, 2020 2019 Revenues: Polyurethanes $ 888 $ 924 Performance Products 292 300 Advanced Materials 241 272 Textile Effects 180 189 Corporate and eliminations (8) (16) Total $ 1,593 $ 1,669 Huntsman Corporation: Segment adjusted EBITDA(1): Polyurethanes $ 84 $ 124 Performance Products 58 45 Advanced Materials 48 53 Textile Effects 20 22 Corporate and other(2) (45) (40) Total 165 204 Reconciliation of adjusted EBITDA to net income: Interest expense, net—continuing operations (18) (30) Income tax expense—continuing operations (7) (45) Income tax expense—discontinued operations (238) (5) Depreciation and amortization—continuing operations (67) (67) Depreciation and amortization—discontinued operations — (23) Net income attributable to noncontrolling interests 3 12 Other adjustments: Business acquisition and integration expenses and purchase accounting inventory adjustments (13) (1) EBITDA from discontinued operations(3) 1,015 51 Fair value adjustments to Venator investment (110) 76 Loss on early extinguishment of debt — (23) Certain legal settlements and related expenses (2) — Gain on sale of businesses/assets 2 — Certain nonrecurring information technology project implementation costs (1) — Amortization of pension and postretirement actuarial losses (18) (17) Restructuring, impairment and plant closing and transition costs (3) (1) Net income $ 708 $ 131 Three months ended March 31, 2020 2019 Huntsman International: Segment adjusted EBITDA(1): Polyurethanes $ 84 $ 124 Performance Products 58 45 Advanced Materials 48 53 Textile Effects 20 22 Corporate and other(2) (44) (38) Total 166 206 Reconciliation of adjusted EBITDA to net income: Interest expense, net—continuing operations (20) (35) Income tax expense—continuing operations (7) (44) Income tax expense—discontinued operations (238) (5) Depreciation and amortization—continuing operations (67) (67) Depreciation and amortization—discontinued operations — (23) Net income attributable to noncontrolling interests 3 12 Other adjustments: Business acquisition and integration expenses and purchase accounting inventory adjustments (13) (1) EBITDA from discontinued operations(3) 1,015 51 Fair value adjustments to Venator investment (110) 76 Loss on early extinguishment of debt — (23) Certain legal settlements and related expenses (2) — Gain on sale of businesses/assets 2 — Certain nonrecurring information technology project implementation costs (1) — Amortization of pension and postretirement actuarial losses (18) (18) Restructuring, impairment and plant closing and transition costs (3) (1) Net income $ 707 $ 128 (1) We use segment adjusted EBITDA as the measure of each segment’s profit or loss. We believe that segment adjusted EBITDA more accurately reflects what the chief operating decision maker uses to make decisions about resources to be allocated to the segments and assess their financial performance. Segment adjusted EBITDA is defined as net income of Huntsman Corporation or Huntsman International, as appropriate, before interest, income tax, depreciation and amortization, net income attributable to noncontrolling interests and certain Corporate and other items, as well as eliminating the following adjustments: (a) business acquisition and integration expenses and purchase accounting inventory adjustments; (b) EBITDA from discontinued operations; (c) fair value adjustments to Venator investment; (d) loss on early extinguishment of debt; (e) certain legal settlements and related (expenses) income; (f) (loss) gain on sale of businesses/assets; (g) certain nonrecurring information technology project implementation costs; (h) amortization of pension and postretirement actuarial losses; and (i) restructuring, impairment, plant closing and transition (costs) credits. (2) Corporate and other includes unallocated corporate overhead, unallocated foreign exchange gains and losses, LIFO inventory valuation reserve adjustments, loss on early extinguishment of debt, unallocated restructuring, impairment and plant closing costs, nonoperating income and expense and gains and losses on the disposition of corporate assets. (3) Includes the gain on the sale of our Chemical Intermediates Businesses in 2020. |
GENERAL (Policies)
GENERAL (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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 Prior periods have been recasted to record the results of operations of our chemical intermediates businesses, which includes PO/MTBE, and our surfactants businesses (collectively, our “Chemical Intermediates Businesses”) as discontinued operations. See “Note 4. Discontinued Operations and Business Dispositions—Sale of Chemical Intermediates Businesses.” |
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. |
BUSINESS COMBINATIONS AND ACQ_2
BUSINESS COMBINATIONS AND ACQUISITIONS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
BUSINESS COMBINATIONS | |
Schedule of allocation of acquisition cost to the assets acquired and liabilities assumed | The allocation of acquisition cost to the assets acquired and liabilities assumed is summarized as follows (dollars in millions): Fair value of assets acquired and liabilities assumed: Cash paid for the Icynene-Lapolla Acquisition in Q1 2020 $ 353 Cash $ 7 Accounts receivable 41 Inventories 36 Prepaid expenses and other current assets 1 Property, plant and equipment, net 7 Intangible assets 165 Goodwill 130 Other noncurrent assets 3 Accounts payable (13) Accrued liabilities (10) Deferred income taxes (14) Total fair value of net assets acquired $ 353 |
Schedule of estimated pro forma revenues and net income | If this acquisition were to have occurred on January 1, 2019, the following estimated pro forma revenues, net income, net income attributable to Huntsman Corporation and Huntsman International would have been reported (dollars in millions): Pro Forma (Unaudited) Three months ended March 31, 2020 2019 Revenues $ 1,623 $ 1,725 Net income 704 129 Net income attributable to Huntsman Corporation 701 117 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |
BUSINESS COMBINATIONS | |
Schedule of estimated pro forma revenues and net income | Pro Forma (Unaudited) Three months ended March 31, 2020 2019 Revenues $ 1,623 $ 1,725 Net income 703 126 Net income attributable to Huntsman International 700 114 |
DISCONTINUED OPERATIONS AND B_2
DISCONTINUED OPERATIONS AND BUSINESS DISPOSITIONS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
DISCONTINUED OPERATIONS AND BUSINESS DISPOSITIONS | |
Summary of major classes of line items of discontinued operations | The following table reconciles the carrying amounts of major classes of assets and liabilities of discontinued operations to total assets and liabilities of discontinued operations that are classified as held for sale in our condensed consolidated balance sheets (dollars in millions): December 31, 2019 Carrying amounts of major classes of assets held for sale: Accounts receivable $ 145 Inventories 105 Total current assets Property, plant and equipment, net 720 Operating lease right-of-use assets 69 Deferred income taxes 4 Other noncurrent assets 165 Total assets held for sale(1) $ 1,208 Carrying amounts of major classes of liabilities held for sale: Accounts payable $ 152 Accrued liabilities 26 Current operating lease liabilities 20 Total current liabilities Deferred income taxes 135 Noncurrent operating lease liabilities 51 Other noncurrent liabilities 128 Total noncurrent liabilities Total liabilities held for sale(1) $ 512 (1) The assets and liabilities held for sale are classified as current as of December 31, 2019 because the sale of our Chemical Intermediates Businesses was completed on January 3, 2020. The following table reconciles major line items constituting pretax income of discontinued operations to after-tax income of discontinued operations as presented in our condensed consolidated statements of operations (dollars in millions): Three months ended March 31, 2020 2019 Major line items constituting pretax income of discontinued operations: Trade sales, services and fees, net $ 6 $ 403 Cost of goods sold 9 364 Gain on sale of the Chemical Intermediates Businesses 990 — Insurance proceeds 28 — Other expense items, net — 11 Income from discontinued operations before income taxes 1,015 28 Income tax expense (238) (5) Net income attributable to discontinued operations $ 777 $ 23 (1) Discontinued operations include our Chemical Intermediates Businesses, our Australian styrenics operations and our North American polymers and base chemicals operations for all periods presented. (2) Includes eliminations of trade sales, services and fees, net and cost of sales between continuing operations and discontinued operations. |
Schedule of equity method investment of Venator | Summarized financial information of Venator for the three months ended March 31, 2020 and 2019 is as follows (in millions): Three months ended March 31, 2020 2019 Revenues $ 532 $ 562 Gross profit 61 76 Income (loss) from continuing operations 8 (2) Net income (loss) 8 (2) Net income (loss) attributable to Venator 7 (3) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
INVENTORIES | |
Schedule of inventory | 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, 2020 2019 Raw materials and supplies $ 182 $ 175 Work in progress 44 49 Finished goods 815 718 Total 1,041 942 LIFO reserves (33) (28) Net inventories $ 1,008 $ 914 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 and our consolidated balance sheet as of December 31, 2019 (dollars in millions): March 31, December 31, 2020 2019 Current assets $ 55 $ 50 Property, plant and equipment, net 178 180 Operating lease right-of-use assets 17 16 Other noncurrent assets 139 132 Deferred income taxes 30 30 Total assets $ 419 $ 408 Current liabilities $ 159 $ 151 Long-term debt 26 29 Noncurrent operating lease liabilities 12 11 Other noncurrent liabilities 85 87 Total liabilities $ 282 $ 278 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, 2020 and 2019 are as follows (dollars in millions): Three months ended March 31, 2020(1) 2019 Revenues $ — $ 36 Income from continuing operations before income taxes 1 9 Net cash provided by operating activities 6 31 (1) As of September 30, 2019, Sasol-Huntsman was no longer accounted for as a variable interest entity. Therefore, this financial data excludes information for Sasol-Huntsman. |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 Senior Credit Facilities: Revolving facility $ — $ 40 Amounts outstanding under A/R programs 55 167 Term loan 101 103 Senior notes 1,950 1,963 Variable interest entities 58 65 Other 19 51 Total debt $ 2,183 $ 2,389 Total current portion of debt $ 134 $ 212 Long-term portion of debt 2,049 2,177 Total debt $ 2,183 $ 2,389 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |
Debt | |
Schedule of outstanding debt | March 31, December 31, 2020 2019 Senior Credit Facilities: Revolving facility $ — $ 40 Amounts outstanding under A/R programs 55 167 Term loan 101 103 Senior notes 1,950 1,963 Variable interest entities 58 65 Other 19 51 Total debt, excluding debt to affiliates $ 2,183 $ 2,389 Total current portion of debt $ 134 $ 212 Long-term portion of debt 2,049 2,177 Total debt, excluding debt to affiliates $ 2,183 $ 2,389 Notes payable to affiliates-current — 100 Notes payable to affiliates-noncurrent — 280 Total debt $ 2,183 $ 2,769 |
Schedule of 2018 Credit Facility | Unamortized Discounts and Committed Principal Debt Issuance Carrying Facility Amount Outstanding Costs Value Interest Rate(2) Maturity 2018 Revolving Credit Facility $ 1,200 $ — (1) $ — (1) $ — (1) USD LIBOR plus 1.50% 2023 (1) On March 31, 2020, we had an additional $7 million (U.S. dollar equivalents) of letters of credit and bank guarantees issued and outstanding under our 2018 Revolving Credit Facility. (2) Interest rates on borrowings under the 2018 Revolving Credit Facility vary based on the type of loan and Huntsman International’s debt ratings. The then applicable interest rate as of March 31, 2020 was 1.50% above LIBOR. |
Schedule of A/R Programs | Maximum Funding Amount Facility Maturity Availability(1) Outstanding Interest Rate(2) U.S. A/R Program April 2022 $ 150 $ — (3) Applicable rate plus 0.90% EU A/R Program April 2022 € 100 € 50 Applicable rate plus 1.30% (or approximately $110) (or approximately $55) (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 USD LIBOR. The applicable rate for our EU A/R Program is either GBP LIBOR, USD LIBOR or EURIBOR. (3) As of March 31, 2020, 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, 2020 | |
FAIR VALUE | |
Schedule of fair values of financial instruments | The fair values of financial instruments were as follows (dollars in millions): March 31, 2020 December 31, 2019 Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value Non-qualified employee benefit plan investments $ 19 $ 19 $ 28 $ 28 Long-term debt (including current portion) (2,183) (2,125) (2,389) (2,544) |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
REVENUE RECOGNITION | |
Schedule of disaggregation of revenue by major source | The following tables disaggregate our revenue from continuing operations by major source for the three months ended March 31, 2020 (dollars in millions): Polyurethanes Performance Products Advanced Materials Textile Effects Corporate and Eliminations Total Primary Geographic Markets(1) U.S. and Canada $ 370 $ 129 $ 63 $ 17 $ (7) $ 572 Europe 245 74 101 32 (1) 451 Asia Pacific 199 70 56 103 — 428 Rest of world 74 19 21 28 — 142 $ 888 $ 292 $ 241 $ 180 $ (8) $ 1,593 Major Product Groupings MDI urethanes $ 888 $ 888 Differentiated $ 292 292 Specialty $ 211 211 Non-specialty 30 30 Textile chemicals, dyes and digital inks $ 180 180 Eliminations $ (8) (8) $ 888 $ 292 $ 241 $ 180 $ (8) $ 1,593 (1) Geographic information for revenues is based upon countries into which product is sold. The following tables disaggregate our revenue from continuing operations by major source for the three months ended March 31, 2019 (dollars in millions): Polyurethanes Performance Products Advanced Materials Textile Effects Corporate and Eliminations Total Primary Geographic Markets(1) U.S. and Canada $ 336 $ 135 $ 73 $ 17 $ (19) $ 542 Europe 270 93 121 34 2 520 Asia Pacific 237 56 61 105 — 459 Rest of world 81 16 17 33 1 148 $ 924 $ 300 $ 272 $ 189 $ (16) $ 1,669 Major Product Groupings MDI urethanes $ 924 $ 924 Differentiated $ 300 300 Specialty $ 230 230 Non-specialty 42 42 Textile chemicals, dyes and digital inks $ 189 189 Eliminations $ (16) (16) $ 924 $ 300 $ 272 $ 189 $ (16) $ 1,669 (1) Geographic information for revenues is based upon countries into which product is sold. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
EMPLOYEE BENEFIT PLANS | |
Components of the net periodic benefit costs | Components of the net periodic benefit costs from continuing operations for the three months ended March 31, 2020 and 2019 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, 2020 2019 2020 2019 Service cost $ 14 $ 13 $ — $ — Interest cost 15 20 1 1 Expected return on assets (43) (39) — — Amortization of prior service benefit (2) (2) (1) (1) Amortization of actuarial loss 20 17 — — Net periodic benefit cost $ 4 $ 9 $ — $ — |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |
EMPLOYEE BENEFIT PLANS | |
Components of the net periodic benefit costs | Huntsman International Other Postretirement Defined Benefit Plans Benefit Plans Three months Three months ended ended March 31, March 31, 2020 2019 2020 2019 Service cost $ 14 $ 13 $ — $ — Interest cost 15 20 1 1 Expected return on assets (43) (39) — — Amortization of prior service benefit (2) (2) (1) (1) Amortization of actuarial loss 21 18 — — Net periodic benefit cost $ 5 $ 10 $ — $ — |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
OTHER COMPREHENSIVE INCOME | |
Schedule of other comprehensive income | The components of other comprehensive income 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, 2020 $ (369) $ (1,031) $ 8 $ 4 $ (1,388) $ 26 $ (1,362) Other comprehensive (loss) income before reclassifications, gross (67) 8 — — (59) — (59) Tax benefit (6) — — — (6) — (6) Amounts reclassified from accumulated other comprehensive loss, gross(c) — 58 — — 58 — 58 Tax expense — (14) — — (14) — (14) Net current-period other comprehensive (loss) income (73) 52 — — (21) — (21) Ending balance, March 31, 2020 $ (442) $ (979) $ 8 $ 4 $ (1,409) $ 26 $ (1,383) (a) Amounts are net of tax of $74 and $68 as of March 31, 2020 and January 1, 2020, respectively. (b) Amounts are net of tax of $134 and $148 as of March 31, 2020 and January 1, 2020, 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, 2019 $ (371) $ (994) $ 8 $ 5 $ (1,352) $ 36 $ (1,316) Other comprehensive income before reclassifications, gross 40 — — — 40 (2) 38 Tax benefit 2 — — — 2 — 2 Amounts reclassified from accumulated other comprehensive loss, gross(c) — 15 — — 15 — 15 Tax expense — (3) — — (3) — (3) Net current-period other comprehensive income 42 12 — — 54 (2) 52 Ending balance, March 31, 2019 $ (329) $ (982) $ 8 $ 5 $ (1,298) $ 34 $ (1,264) (a) Amounts are net of tax of $69 and $71 as of March 31, 2019 and January 1, 2019, respectively. (b) Amounts are net of tax of $132 and $135 as of March 31, 2019 and January 1, 2019, respectively. (c) See table below for details about these reclassifications. |
Schedule of details about reclassifications from other comprehensive income | Three months ended March 31, 2020 2019 Amounts reclassified Amounts reclassified Affected line item in from accumulated from accumulated the statement other other where net income Details about Accumulated Other comprehensive loss comprehensive loss is presented Comprehensive Loss Components(a): Amortization of pension and other postretirement benefits: Prior service credit $ (3) $ (3) (b) Settlement loss 41 — (c) Actuarial loss 20 18 (b)(d) 58 15 Total before tax (14) (3) Income tax expense Total reclassifications for the period $ 44 $ 12 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) In connection with the sale of our Chemical Intermediates Businesses, we recognized $41 million of pension and other post-employment benefit settlement losses during the three months ended March 31, 2020. (d) Amounts contain approximately $1 of actuarial losses related to discontinued operations for both the three months ended March 31, 2020 and 2019. |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |
OTHER COMPREHENSIVE INCOME | |
Schedule of other comprehensive income | Huntsman International Foreign Pension Other Other, net Total Amounts Amounts Beginning balance, January 1, 2020 $ (374) $ (1,012) $ 8 $ — $ (1,378) $ 26 $ (1,352) Other comprehensive (loss) income before reclassifications, gross (67) 8 — — (59) — (59) Tax benefit (6) — — — (6) — (6) Amounts reclassified from accumulated other comprehensive loss, gross(c) — 59 — — 59 — 59 Tax expense — (14) — — (14) — (14) Net current-period other comprehensive (loss) income (73) 53 — — (20) — (20) Ending balance, March 31, 2020 $ (447) $ (959) $ 8 $ — $ (1,398) $ 26 $ (1,372) (a) Amounts are net of tax of $61 and $55 as of March 31, 2020 and January 1, 2020 respectively. (b) Amounts are net of tax of $160 and $174 as of March 31, 2020 and January 1, 2020, 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, 2019 $ (376) $ (977) $ 8 $ 1 $ (1,344) $ 36 $ (1,308) Other comprehensive income before reclassifications, gross 40 — — — 40 (2) 38 Tax benefit 1 — — — 1 — 1 Amounts reclassified from accumulated other comprehensive loss, gross(c) — 16 — — 16 — 16 Tax expense — (3) — — (3) — (3) Net current-period other comprehensive income 41 13 — — 54 (2) 52 Ending balance, March 31, 2019 $ (335) $ (964) $ 8 $ 1 $ (1,290) $ 34 $ (1,256) (a) Amounts are net of tax of $56 and $57 as of March 31, 2019 and January 1, 2019, respectively. (b) Amounts are net of tax of $158 and $161 as of March 31, 2019 and January 1, 2019, respectively. (c) See table below for details about these reclassifications. |
Schedule of details about reclassifications from other comprehensive income | Three months ended March 31, 2020 2019 Amounts reclassified Amounts reclassified Affected line item in from accumulated from accumulated the statement other other where net income Details about Accumulated Other comprehensive loss comprehensive loss is presented Comprehensive Loss Components(a): Amortization of pension and other postretirement benefits: Prior service credit $ (3) $ (3) (b) Settlement loss 41 — (c) Actuarial loss 21 19 (b)(d) 59 16 Total before tax (14) (3) Income tax expense Total reclassifications for the period $ 45 $ 13 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) In connection with the sale of our Chemical Intermediates Businesses, we recognized $41 million of pension and other post-employment benefit settlement losses during the three months ended March 31, 2020. (d) Amounts contain approximately $1 of actuarial losses related to discontinued operations for both the three months ended March 30, 2020 and 2019. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
STOCK-BASED COMPENSATION PLANS | |
Schedule of compensation cost under the stock-based compensation plans | The compensation cost from continuing operations under the stock-based compensation plans for our Company and Huntsman International were as follows (dollars in millions): Three months ended March 31, 2020 2019 Huntsman Corporation compensation cost $ 7 $ 8 Huntsman International compensation cost 6 7 |
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, 2020 2019 Dividend yield 3.0 % 2.9 % Expected volatility 53.1 % 54.0 % Risk-free interest rate 1.5 % 2.5 % Expected life of stock options granted during the period 5.9 years 5.9 years |
Summary of stock option activity under the stock-based compensation plans | Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Option Awards Shares Price Term Value (in thousands) (years) (in millions) Outstanding at January 1, 2020 5,025 $ 19.08 Granted 750 21.54 Exercised (154) 12.55 Forfeited (8) 26.33 Outstanding at March 31, 2020 5,613 19.57 6.4 $ 7 Exercisable at March 31, 2020 4,141 18.31 5.4 7 |
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, 2020 1,640 $ 24.61 427 $ 24.80 Granted 822 21.97 237 21.54 Vested (561) (1)(2) 25.21 (216) 24.66 Forfeited (2) 25.26 (4) 25.63 Nonvested at March 31, 2020 1,899 23.29 444 23.12 (1) As of March 31, 2020, a total of 422,755 restricted stock units were vested but not yet issued, of which 33,660 vested during the three months ended March 31, 2020. 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. (2) A total of 174,200 performance share unit awards are reflected in the vested shares in this table, which represents the target number of performance share unit awards for this grant and were included in the balance at December 31, 2019. During the three months ended March 31, 2020, an additional 165,489 performance share unit awards with a grant date fair value of $26.99 vested above the target in accordance the performance criteria of these awards. |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
NET INCOME PER SHARE | |
Schedule of basic and diluted income (loss) per share | Basic and diluted income (loss) per share is determined using the following information (in millions): Three months ended March 31, 2020 2019 Numerator: Basic and diluted (loss) income from continuing operations: (Loss) income from continuing operations attributable to Huntsman Corporation $ (72) $ 96 Basic and diluted net income: Net income attributable to Huntsman Corporation $ 705 $ 119 Denominator: Weighted average shares outstanding 223.2 233.1 Dilutive shares: Stock-based awards — 2.0 Total weighted average shares outstanding, including dilutive shares 223.2 235.1 |
OPERATING SEGMENT INFORMATION (
OPERATING SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
OPERATING SEGMENT INFORMATION | |
Schedule of major products by reportable operating segment | Segment Products Polyurethanes MDI, polyols, PG, TPU and aniline Performance Products Specialty amines, ethyleneamines, maleic anhydride and technology licenses Advanced Materials Basic liquid and solid epoxy resins; specialty resin compounds; cross-linking, matting and curing agents; epoxy, acrylic and polyurethane-based formulations Textile Effects Textile chemicals, dyes and digital inks |
Schedule of EBITDA, Assets, Goodwill and Depreciation for each of the entity's reportable operating segments | The revenues and adjusted EBITDA from continuing operations for each of our reportable operating segments are as follows (dollars in millions): Three months ended March 31, 2020 2019 Revenues: Polyurethanes $ 888 $ 924 Performance Products 292 300 Advanced Materials 241 272 Textile Effects 180 189 Corporate and eliminations (8) (16) Total $ 1,593 $ 1,669 Huntsman Corporation: Segment adjusted EBITDA(1): Polyurethanes $ 84 $ 124 Performance Products 58 45 Advanced Materials 48 53 Textile Effects 20 22 Corporate and other(2) (45) (40) Total 165 204 Reconciliation of adjusted EBITDA to net income: Interest expense, net—continuing operations (18) (30) Income tax expense—continuing operations (7) (45) Income tax expense—discontinued operations (238) (5) Depreciation and amortization—continuing operations (67) (67) Depreciation and amortization—discontinued operations — (23) Net income attributable to noncontrolling interests 3 12 Other adjustments: Business acquisition and integration expenses and purchase accounting inventory adjustments (13) (1) EBITDA from discontinued operations(3) 1,015 51 Fair value adjustments to Venator investment (110) 76 Loss on early extinguishment of debt — (23) Certain legal settlements and related expenses (2) — Gain on sale of businesses/assets 2 — Certain nonrecurring information technology project implementation costs (1) — Amortization of pension and postretirement actuarial losses (18) (17) Restructuring, impairment and plant closing and transition costs (3) (1) Net income $ 708 $ 131 Three months ended March 31, 2020 2019 Huntsman International: Segment adjusted EBITDA(1): Polyurethanes $ 84 $ 124 Performance Products 58 45 Advanced Materials 48 53 Textile Effects 20 22 Corporate and other(2) (44) (38) Total 166 206 Reconciliation of adjusted EBITDA to net income: Interest expense, net—continuing operations (20) (35) Income tax expense—continuing operations (7) (44) Income tax expense—discontinued operations (238) (5) Depreciation and amortization—continuing operations (67) (67) Depreciation and amortization—discontinued operations — (23) Net income attributable to noncontrolling interests 3 12 Other adjustments: Business acquisition and integration expenses and purchase accounting inventory adjustments (13) (1) EBITDA from discontinued operations(3) 1,015 51 Fair value adjustments to Venator investment (110) 76 Loss on early extinguishment of debt — (23) Certain legal settlements and related expenses (2) — Gain on sale of businesses/assets 2 — Certain nonrecurring information technology project implementation costs (1) — Amortization of pension and postretirement actuarial losses (18) (18) Restructuring, impairment and plant closing and transition costs (3) (1) Net income $ 707 $ 128 (1) We use segment adjusted EBITDA as the measure of each segment’s profit or loss. We believe that segment adjusted EBITDA more accurately reflects what the chief operating decision maker uses to make decisions about resources to be allocated to the segments and assess their financial performance. Segment adjusted EBITDA is defined as net income of Huntsman Corporation or Huntsman International, as appropriate, before interest, income tax, depreciation and amortization, net income attributable to noncontrolling interests and certain Corporate and other items, as well as eliminating the following adjustments: (a) business acquisition and integration expenses and purchase accounting inventory adjustments; (b) EBITDA from discontinued operations; (c) fair value adjustments to Venator investment; (d) loss on early extinguishment of debt; (e) certain legal settlements and related (expenses) income; (f) (loss) gain on sale of businesses/assets; (g) certain nonrecurring information technology project implementation costs; (h) amortization of pension and postretirement actuarial losses; and (i) restructuring, impairment, plant closing and transition (costs) credits. (2) Corporate and other includes unallocated corporate overhead, unallocated foreign exchange gains and losses, LIFO inventory valuation reserve adjustments, loss on early extinguishment of debt, unallocated restructuring, impairment and plant closing costs, nonoperating income and expense and gains and losses on the disposition of corporate assets. (3) Includes the gain on the sale of our Chemical Intermediates Businesses in 2020. |
GENERAL - ACQUISITION AND SALE
GENERAL - ACQUISITION AND SALE (Details) $ in Millions | Mar. 15, 2020USD ($)facility | Feb. 20, 2020USD ($) | Mar. 31, 2020segment | Jan. 03, 2020USD ($) |
GENERAL | ||||
Number of operating segments | segment | 4 | |||
Discontinued Operations, Disposed of by Sale | Chemical Intermediates Businesses | ||||
GENERAL | ||||
Purchase price of disposition | $ 2,000 | |||
Cash purchase price, including adjustments | 1,930 | |||
Underfunded pension and other post-employment benefit liabilities | $ 72 | |||
Icynene-Lapolla | ||||
GENERAL | ||||
Cash paid for acquisition | $ 353 | |||
CVC Thermoset Specialties | ||||
GENERAL | ||||
Number of operating manufacturing facilities in a acquisition agreement | facility | 2 | |||
Cash paid for acquisition | $ 300 |
BUSINESS COMBINATION AND ACQUIS
BUSINESS COMBINATION AND ACQUISITIONS - ICYNENE-LAPOLLA (Details) - USD ($) $ in Millions | Feb. 20, 2020 | Mar. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Fair value of assets acquired and liabilities assumed: | |||||
Goodwill | $ 396 | $ 396 | $ 276 | ||
Icynene-Lapolla | |||||
BUSINESS COMBINATIONS | |||||
Transaction related costs | $ 10 | ||||
Revenue from date of acquisition | 27 | ||||
Net income from date of acquisition | 6 | ||||
Fair value of assets acquired and liabilities assumed: | |||||
Cash paid for acquisition | 353 | ||||
Cash | 7 | ||||
Accounts receivable | 41 | ||||
Inventories | 36 | ||||
Prepaid expenses and other current assets | 1 | ||||
Property, plant and equipment, net | 7 | ||||
Intangible assets | 165 | ||||
Goodwill | 130 | ||||
Other noncurrent assets | 3 | ||||
Accounts payable | (13) | ||||
Accrued liabilities | (10) | ||||
Deferred income taxes | (14) | ||||
Total fair value of net assets acquired | $ 353 | ||||
Estimated pro forma revenues and net income (loss) attributable to business acquisition | |||||
Revenues | 1,623 | $ 1,725 | |||
Net income | 704 | 129 | |||
Net income attributable to Huntsman | 701 | 117 | |||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||
Fair value of assets acquired and liabilities assumed: | |||||
Goodwill | $ 396 | 396 | $ 276 | ||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Icynene-Lapolla | |||||
Estimated pro forma revenues and net income (loss) attributable to business acquisition | |||||
Revenues | 1,623 | 1,725 | |||
Net income | 703 | 126 | |||
Net income attributable to Huntsman | $ 700 | $ 114 |
DISCONTINUED OPERATIONS AND B_3
DISCONTINUED OPERATIONS AND BUSINESS DISPOSITIONS - CHEMICAL INTERMEDIATES (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Carrying amounts of major classes of assets held for sale: | |||
Total current assets | $ 1,208 | ||
Carrying amounts of major classes of liabilities held for sale: | |||
Total current liabilities | 512 | ||
Chemical Intermediates Businesses | Discontinued Operations, Held-for-sale | |||
Carrying amounts of major classes of assets held for sale: | |||
Accounts receivable | 145 | ||
Inventories | 105 | ||
Property, plant and equipment, net | 720 | ||
Operating lease right-of-use assets | 69 | ||
Deferred income taxes | 4 | ||
Other noncurrent assets | 165 | ||
Total assets held for sale | 1,208 | ||
Carrying amounts of major classes of liabilities held for sale: | |||
Accounts payable | 152 | ||
Accrued liabilities | 26 | ||
Current operating lease liabilities | 20 | ||
Deferred income taxes | 135 | ||
Noncurrent operating lease liabilities | 51 | ||
Other noncurrent liabilities | 128 | ||
Total liabilities held for sale | $ 512 | ||
Chemical Intermediates Businesses | Discontinued Operations, Disposed of by Sale | |||
BUSINESS DISPOSITIONS | |||
Net after-tax gain on disposal | $ 758 | ||
Proceeds from sale of businesses | $ 1,915 | ||
Expected payment of income taxes on proceeds from sale | $ 375 |
DISCONTINUED OPERATIONS AND B_4
DISCONTINUED OPERATIONS AND BUSINESS DISPOSITIONS - OPERATIONS DATA (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Major line items constituting pretax income of discontinued operations: | ||
Income tax expense | $ (238) | $ (5) |
Income (loss) from discontinued operations, net of tax | 777 | 23 |
Net income attributable to discontinued operations | 777 | 23 |
Chemical Intermediates Businesses | Discontinued Operations, Held-for-sale | ||
Major line items constituting pretax income of discontinued operations: | ||
Trade sales, services and fees, net | 403 | |
Cost of goods sold | 364 | |
Other expense items, net | 11 | |
Income from discontinued operations before income taxes | 28 | |
Income tax expense | (5) | |
Net income attributable to discontinued operations | 23 | |
Chemical Intermediates Businesses | Discontinued Operations, Disposed of by Sale | ||
Major line items constituting pretax income of discontinued operations: | ||
Trade sales, services and fees, net | 6 | |
Cost of goods sold | 9 | |
Gain on sale of the Chemical Intermediates Businesses | 990 | |
Insurance proceeds | 28 | |
Income from discontinued operations before income taxes | 1,015 | |
Income tax expense | (238) | |
Net income attributable to discontinued operations | 777 | |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Major line items constituting pretax income of discontinued operations: | ||
Income tax expense | (238) | (5) |
Income (loss) from discontinued operations, net of tax | $ 777 | $ 23 |
DISCONTINUED OPERATIONS AND B_5
DISCONTINUED OPERATIONS AND BUSINESS DISPOSITIONS - VENATOR (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2018 | |
BUSINESS DISPOSITIONS | |||
Unrealized losses (gains) on fair value adjustments to Venator investment | $ 110 | $ (76) | |
Venator Materials PLC | |||
BUSINESS DISPOSITIONS | |||
Ownership interest (as a percent) | 49.00% | ||
Unrealized losses (gains) on fair value adjustments to Venator investment | 110 | (75) | |
Revenues | 532 | 562 | |
Gross Profit | 61 | 76 | |
Income (loss) from continuing operations | 8 | (2) | |
Net income (loss) | 8 | (2) | |
Venator Materials PLC | Venator Materials PLC | |||
BUSINESS DISPOSITIONS | |||
Net income (loss) | $ 7 | $ (3) |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | |
Inventories | |||
Raw materials and supplies | $ 182 | $ 175 | |
Work in progress | 44 | 49 | |
Finished goods | 815 | 718 | |
Total | 1,041 | 942 | |
LIFO reserves | (33) | (28) | |
Net inventories | [1] | $ 1,008 | $ 914 |
Percentage of inventories recorded using the LIFO cost method | 8.00% | 9.00% | |
[1] | At March 31, 2020 and December 31, 2019, respectively, $3 and nil of cash and cash equivalents, $5 and $13 of accounts and notes receivable (net), $46 and $35 of inventories, $178 and $180 of property, plant and equipment (net), $21 and $20 of other noncurrent assets, $111 and $100 of accounts payable, $11 and $10 of accrued liabilities, $32 and $36 of current portion of debt, $4 each of current operating lease liabilities, $26 and $29 of long-term debt, $12 and $11 of noncurrent operating lease liabilities and $85 and $87 of other noncurrent liabilities from consolidated variable interest entities are included in the respective balance sheet captions above. See “Note 6. Variable Interest Entities.” |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Assets and liabilities of VIE | |||||
Current assets | $ 3,774 | $ 3,755 | |||
Property, plant and equipment, net | [1] | 2,357 | 2,383 | ||
Operating lease right-of-use assets | 380 | 396 | |||
Deferred income taxes | 287 | 292 | |||
Intangible assets | [1] | 351 | 197 | ||
Goodwill | 396 | 276 | |||
Total assets | 8,458 | 8,320 | |||
Current liabilities | 1,774 | 2,008 | |||
Long-term debt | [1] | 2,049 | 2,177 | ||
Deferred income taxes | 54 | 29 | |||
Noncurrent operating lease liabilities | [1] | 365 | 384 | ||
Other noncurrent liabilities | [1] | 833 | 898 | ||
Total liabilities | 5,075 | 5,496 | |||
Revenues, income from continuing operations before income taxes and net cash provided by operating activities for our variable interest entities | |||||
Total revenues | 1,593 | $ 1,669 | |||
Income from continuing operations before income taxes | (62) | 153 | |||
Net cash provided by operating activities | (75) | (31) | |||
Sasol Huntsman GmbH and Co. KG | |||||
Identification of variable interest entities through investments and transactions | |||||
Percentage of joint interest acquired | 50.00% | ||||
Consolidated VIE's | |||||
Assets and liabilities of VIE | |||||
Current assets | 55 | 50 | |||
Property, plant and equipment, net | 178 | 180 | |||
Operating lease right-of-use assets | 17 | 16 | |||
Other noncurrent assets | 139 | 132 | |||
Deferred income taxes | 30 | 30 | |||
Total assets | 419 | 408 | |||
Current liabilities | 159 | 151 | |||
Long-term debt | 26 | 29 | |||
Noncurrent operating lease liabilities | 12 | 11 | |||
Other noncurrent liabilities | 85 | 87 | |||
Total liabilities | 282 | $ 278 | |||
Revenues, income from continuing operations before income taxes and net cash provided by operating activities for our variable interest entities | |||||
Total revenues | 36 | ||||
Income from continuing operations before income taxes | 1 | 9 | |||
Net cash provided by operating activities | $ 6 | $ 31 | |||
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% | ||||
[1] | At March 31, 2020 and December 31, 2019, respectively, $3 and nil of cash and cash equivalents, $5 and $13 of accounts and notes receivable (net), $46 and $35 of inventories, $178 and $180 of property, plant and equipment (net), $21 and $20 of other noncurrent assets, $111 and $100 of accounts payable, $11 and $10 of accrued liabilities, $32 and $36 of current portion of debt, $4 each of current operating lease liabilities, $26 and $29 of long-term debt, $12 and $11 of noncurrent operating lease liabilities and $85 and $87 of other noncurrent liabilities from consolidated variable interest entities are included in the respective balance sheet captions above. See “Note 6. Variable Interest Entities.” |
DEBT - DEBT OUTSTANDING (Detail
DEBT - DEBT OUTSTANDING (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | |
Debt | |||
Total debt - excluding debt to affiliates | $ 2,183 | $ 2,389 | |
Total current portion of debt | [1] | 134 | 212 |
Long-term portion of debt | [1] | 2,049 | 2,177 |
Total debt | 2,183 | 2,389 | |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Total debt - excluding debt to affiliates | 2,183 | 2,389 | |
Total current portion of debt | [1] | 134 | 212 |
Long-term portion of debt | [1] | 2,049 | 2,177 |
Notes payable to affiliates-current | 100 | ||
Notes payable to affiliates-noncurrent | 280 | ||
Total debt | 2,183 | 2,769 | |
2018 Revolving Credit Facility | |||
Debt | |||
Total debt - excluding debt to affiliates | 40 | ||
2018 Revolving Credit Facility | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Total debt - excluding debt to affiliates | 40 | ||
Term loan | |||
Debt | |||
Total debt - excluding debt to affiliates | 101 | 103 | |
Term loan | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Total debt - excluding debt to affiliates | 101 | 103 | |
Accounts receivable programs | |||
Debt | |||
Total debt - excluding debt to affiliates | 55 | 167 | |
Accounts receivable programs | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Total debt - excluding debt to affiliates | 55 | 167 | |
Senior notes | |||
Debt | |||
Total debt - excluding debt to affiliates | 1,950 | 1,963 | |
Senior notes | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Total debt - excluding debt to affiliates | 1,950 | 1,963 | |
Variable interest entities | |||
Debt | |||
Total debt - excluding debt to affiliates | 58 | 65 | |
Variable interest entities | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Total debt - excluding debt to affiliates | 58 | 65 | |
Other | |||
Debt | |||
Total debt - excluding debt to affiliates | 19 | 51 | |
Other | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Total debt - excluding debt to affiliates | $ 19 | $ 51 | |
[1] | At March 31, 2020 and December 31, 2019, respectively, $3 and nil of cash and cash equivalents, $5 and $13 of accounts and notes receivable (net), $46 and $35 of inventories, $178 and $180 of property, plant and equipment (net), $21 and $20 of other noncurrent assets, $111 and $100 of accounts payable, $11 and $10 of accrued liabilities, $32 and $36 of current portion of debt, $4 each of current operating lease liabilities, $26 and $29 of long-term debt, $12 and $11 of noncurrent operating lease liabilities and $85 and $87 of other noncurrent liabilities from consolidated variable interest entities are included in the respective balance sheet captions above. See “Note 6. Variable Interest Entities.” |
DEBT - ISSUANCE COSTS (Details)
DEBT - ISSUANCE COSTS (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
DEBT | ||
Debt issuance costs | $ 11 | $ 11 |
DEBT - CREDIT FACILITIES (Detai
DEBT - CREDIT FACILITIES (Details) € in Millions, $ in Millions | Sep. 30, 2019 | Sep. 24, 2019USD ($) | Mar. 31, 2020USD ($) | Sep. 24, 2019EUR (€) |
Sasol Huntsman GmbH and Co. KG | ||||
Debt | ||||
Percentage of joint interest acquired | 50.00% | |||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Sasol Huntsman GmbH and Co. KG | ||||
Debt | ||||
Percentage of joint interest acquired | 50.00% | |||
2018 Revolving Credit Facility | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||
Debt | ||||
Committed Amount | $ 1,200 | |||
Amount of letter of credit and bank guarantees issued and outstanding | $ 7 | |||
2018 Revolving Credit Facility | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | LIBOR | ||||
Debt | ||||
Basis spread (as a percent) | 1.50% | |||
Term loan | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||
Debt | ||||
Principal amount of debt | $ 101 | € 92 | ||
Debt term | 364 days | |||
Term loan | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | EURIBOR | ||||
Debt | ||||
Basis spread (as a percent) | 0.75% | |||
Term loan | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | EURIBOR Floor | ||||
Debt | ||||
Basis spread (as a percent) | 0.00% |
DEBT - ACCOUNT RECEIVABLE PROGR
DEBT - ACCOUNT RECEIVABLE PROGRAMS (Details) € in Millions, $ in Millions | 3 Months Ended | ||||
Mar. 31, 2020USD ($) | Mar. 31, 2020EUR (€) | Jan. 03, 2020USD ($) | Jan. 02, 2020USD ($) | Dec. 31, 2019USD ($) | |
Debt | |||||
Debt outstanding | $ 2,183 | $ 2,389 | |||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||
Debt | |||||
Debt outstanding | 2,183 | 2,769 | |||
Accounts receivable programs | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||
Debt | |||||
Accounts receivable pledged as collateral | 252 | $ 221 | |||
U.S. A/R Program Maturing April 2022 | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||
Debt | |||||
Maximum Funding Availability | 150 | $ 150 | $ 250 | ||
Amount of letter of credit and bank guarantees issued and outstanding | 5 | ||||
EU A/R Program Maturing April 2022 | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||
Debt | |||||
Maximum Funding Availability | 110 | € 100 | |||
Debt outstanding | $ 55 | € 50 | |||
USD LIBOR or CP | U.S. A/R Program Maturing April 2022 | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||
Debt | |||||
Basis spread (as a percent) | 0.90% | ||||
GDP LIBOR, USD LIBOR, or EURIBOR | EU A/R Program Maturing April 2022 | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||
Debt | |||||
Basis spread (as a percent) | 1.30% |
DEBT - NOTES (Details)
DEBT - NOTES (Details) - USD ($) $ in Millions | Mar. 27, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Mar. 13, 2019 |
Debt | |||||
Loss on early extinguishment of debt | $ 23 | ||||
Carrying amount of debt | $ 2,183 | $ 2,389 | |||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||
Debt | |||||
Loss on early extinguishment of debt | $ 23 | ||||
Carrying amount of debt | $ 2,183 | $ 2,769 | |||
2020 Senior Notes | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||
Debt | |||||
Early repayment of debt | $ 650 | ||||
Interest rate (as a percent) | 4.875% | ||||
Debt costs associated with redeemed debt | $ 21 | ||||
Debt accrued interest | 12 | ||||
Loss on early extinguishment of debt | $ 23 | ||||
2029 Senior Notes | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||
Debt | |||||
Face amount | $ 750 | ||||
Interest rate (as a percent) | 4.50% | 4.50% | |||
Percentage of principal amount at which the entity may redeem debt | 100.00% |
DEBT - INTERCOMPANY NOTES (Deta
DEBT - INTERCOMPANY NOTES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Debt | ||
Repayments of notes payable to affiliate | $ 380 | $ 33 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) € in Millions, $ in Millions | Jan. 09, 2019USD ($) | Nov. 30, 2019USD ($) | Feb. 28, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020EUR (€) |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||
Notional Amounts | $ 511 | € 465 | ||||
Amount of gain (loss) recognized on the hedge of net investments | $ 8 | $ 8 | ||||
Cash received from forward swap contract related to the sale of investment in Venator | $ 16 | $ 16 | ||||
Forward foreign currency contracts | ||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||
Maximum maturity period of spot or forward exchange rate contracts | 1 year | |||||
Notional Amounts | $ 173 | |||||
Six-year interest rate contract entered in year 2019 | Designated as Hedging Instrument | ||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||
Hedging period of interest rate contract | 6 years | |||||
Notional Amounts | $ 17 | |||||
Fixed rate | 2.66% | |||||
Amount paid to counterparties | $ 1 |
FAIR VALUE - FAIR VALUES OF FIN
FAIR VALUE - FAIR VALUES OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Carrying Amount | ||
Fair values of financial instruments | ||
Non-qualified employee benefit plan investments | $ 19 | $ 28 |
Long-term debt (including current portion) | (2,183) | (2,389) |
Estimated Fair Value | ||
Fair values of financial instruments | ||
Non-qualified employee benefit plan investments | 19 | 28 |
Long-term debt (including current portion) | $ (2,125) | $ (2,544) |
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, 2020USD ($)item | |
Reconciliation of beginning and ending balances for assets measured at fair value on a recurring basis | |
Number of instruments categorized as Level 3 | item | 0 |
Recurring basis | |
Reconciliation of beginning and ending balances for assets measured at fair value on a recurring basis | |
Included in earnings | $ | $ 0 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of revenue | ||
Practical expedient - incremental cost | true | |
Practical expedient - financing component | true | |
Total revenues | $ 1,593 | $ 1,669 |
MDI Urethanes | ||
Disaggregation of revenue | ||
Total revenues | 888 | 924 |
Differentiated | ||
Disaggregation of revenue | ||
Total revenues | 292 | 300 |
Specialty | ||
Disaggregation of revenue | ||
Total revenues | 211 | 230 |
Non-specialty | ||
Disaggregation of revenue | ||
Total revenues | 30 | 42 |
Textile Chemicals and Dyes and Digital Inks | ||
Disaggregation of revenue | ||
Total revenues | 180 | 189 |
U.S. and Canada | ||
Disaggregation of revenue | ||
Total revenues | 572 | 542 |
Europe | ||
Disaggregation of revenue | ||
Total revenues | 451 | 520 |
Asia Pacific | ||
Disaggregation of revenue | ||
Total revenues | 428 | 459 |
Rest of world | ||
Disaggregation of revenue | ||
Total revenues | 142 | 148 |
Operating segments | Polyurethanes | ||
Disaggregation of revenue | ||
Total revenues | 888 | 924 |
Operating segments | Polyurethanes | MDI Urethanes | ||
Disaggregation of revenue | ||
Total revenues | 888 | 924 |
Operating segments | Polyurethanes | U.S. and Canada | ||
Disaggregation of revenue | ||
Total revenues | 370 | 336 |
Operating segments | Polyurethanes | Europe | ||
Disaggregation of revenue | ||
Total revenues | 245 | 270 |
Operating segments | Polyurethanes | Asia Pacific | ||
Disaggregation of revenue | ||
Total revenues | 199 | 237 |
Operating segments | Polyurethanes | Rest of world | ||
Disaggregation of revenue | ||
Total revenues | 74 | 81 |
Operating segments | Performance Products | ||
Disaggregation of revenue | ||
Total revenues | 292 | 300 |
Operating segments | Performance Products | Differentiated | ||
Disaggregation of revenue | ||
Total revenues | 292 | 300 |
Operating segments | Performance Products | U.S. and Canada | ||
Disaggregation of revenue | ||
Total revenues | 129 | 135 |
Operating segments | Performance Products | Europe | ||
Disaggregation of revenue | ||
Total revenues | 74 | 93 |
Operating segments | Performance Products | Asia Pacific | ||
Disaggregation of revenue | ||
Total revenues | 70 | 56 |
Operating segments | Performance Products | Rest of world | ||
Disaggregation of revenue | ||
Total revenues | 19 | 16 |
Operating segments | Advanced Materials | ||
Disaggregation of revenue | ||
Total revenues | 241 | 272 |
Operating segments | Advanced Materials | Specialty | ||
Disaggregation of revenue | ||
Total revenues | 211 | 230 |
Operating segments | Advanced Materials | Non-specialty | ||
Disaggregation of revenue | ||
Total revenues | 30 | 42 |
Operating segments | Advanced Materials | U.S. and Canada | ||
Disaggregation of revenue | ||
Total revenues | 63 | 73 |
Operating segments | Advanced Materials | Europe | ||
Disaggregation of revenue | ||
Total revenues | 101 | 121 |
Operating segments | Advanced Materials | Asia Pacific | ||
Disaggregation of revenue | ||
Total revenues | 56 | 61 |
Operating segments | Advanced Materials | Rest of world | ||
Disaggregation of revenue | ||
Total revenues | 21 | 17 |
Operating segments | Textile Effects | ||
Disaggregation of revenue | ||
Total revenues | 180 | 189 |
Operating segments | Textile Effects | Textile Chemicals and Dyes and Digital Inks | ||
Disaggregation of revenue | ||
Total revenues | 180 | 189 |
Operating segments | Textile Effects | U.S. and Canada | ||
Disaggregation of revenue | ||
Total revenues | 17 | 17 |
Operating segments | Textile Effects | Europe | ||
Disaggregation of revenue | ||
Total revenues | 32 | 34 |
Operating segments | Textile Effects | Asia Pacific | ||
Disaggregation of revenue | ||
Total revenues | 103 | 105 |
Operating segments | Textile Effects | Rest of world | ||
Disaggregation of revenue | ||
Total revenues | 28 | 33 |
Corporate and eliminations | ||
Disaggregation of revenue | ||
Total revenues | (8) | (16) |
Corporate and eliminations | U.S. and Canada | ||
Disaggregation of revenue | ||
Total revenues | (7) | (19) |
Corporate and eliminations | Europe | ||
Disaggregation of revenue | ||
Total revenues | $ (1) | 2 |
Corporate and eliminations | Rest of world | ||
Disaggregation of revenue | ||
Total revenues | $ 1 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Components of net periodic benefit cost | ||
Amortization of actuarial loss | $ 18 | $ 17 |
Contributions to pension and other postretirement benefit plans | 20 | 20 |
Expected contributions to pension and other postretirement benefit plans during remainder of the year | 67 | |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Components of net periodic benefit cost | ||
Amortization of actuarial loss | 18 | 18 |
Defined Benefit Plans | ||
Components of net periodic benefit cost | ||
Service cost | 14 | 13 |
Interest cost | 15 | 20 |
Expected return on assets | (43) | (39) |
Amortization of prior service benefit | (2) | (2) |
Amortization of actuarial loss | 20 | 17 |
Net periodic benefit cost | 4 | 9 |
Defined Benefit Plans | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Components of net periodic benefit cost | ||
Service cost | 14 | 13 |
Interest cost | 15 | 20 |
Expected return on assets | (43) | (39) |
Amortization of prior service benefit | (2) | (2) |
Amortization of actuarial loss | 21 | 18 |
Net periodic benefit cost | 5 | 10 |
Other Postretirement Benefit Plans | ||
Components of net periodic benefit cost | ||
Interest cost | 1 | 1 |
Amortization of prior service benefit | (1) | (1) |
Other Postretirement Benefit Plans | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Components of net periodic benefit cost | ||
Interest cost | 1 | 1 |
Amortization of prior service benefit | $ (1) | $ (1) |
HUNTSMAN CORPORATION STOCKHOL_2
HUNTSMAN CORPORATION STOCKHOLDERS EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | May 03, 2018 | |
SHARE REPURCHASE PROGRAM | |||
Number of shares repurchased | 5,364,519 | ||
Value of repurchase of common stock, excluding commission | $ 96 | $ 34 | |
DIVIDENDS ON COMMON STOCK | |||
Cash dividends paid | $ 37 | $ 39 | |
Cash dividends paid (in dollars per share) | $ 0.1625 | $ 0.1625 | |
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 | $ 950 |
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, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Components of other comprehensive income | ||||
Balance at the beginning of the period | $ 2,824 | $ 2,749 | $ 2,749 | |
Other comprehensive income, net of tax | (21) | 54 | ||
Balance at the end of the period | 3,383 | 2,863 | 2,824 | $ 2,749 |
Total | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | (1,388) | (1,352) | (1,352) | |
Other comprehensive (loss) income before reclassifications, gross | (59) | 40 | ||
Tax benefit (expense) | (6) | 2 | ||
Amounts reclassified from accumulated other comprehensive loss, gross | 58 | 15 | ||
Tax benefit (expense) | (14) | (3) | ||
Other comprehensive income, net of tax | (21) | 54 | ||
Balance at the end of the period | (1,409) | (1,298) | (1,388) | (1,352) |
Foreign currency translation adjustment | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | (369) | (371) | (371) | |
Other comprehensive (loss) income before reclassifications, gross | (67) | 40 | ||
Tax benefit (expense) | (6) | 2 | ||
Other comprehensive income, net of tax | (73) | 42 | ||
Balance at the end of the period | (442) | (329) | (369) | (371) |
Foreign currency translation adjustment, tax | 74 | 69 | 68 | 71 |
Pension and other postretirement benefits adjustments | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | (1,031) | (994) | (994) | |
Other comprehensive (loss) income before reclassifications, gross | 8 | |||
Amounts reclassified from accumulated other comprehensive loss, gross | 58 | 15 | ||
Tax benefit (expense) | (14) | (3) | ||
Other comprehensive income, net of tax | 52 | 12 | ||
Balance at the end of the period | (979) | (982) | (1,031) | (994) |
Pension and other postretirement benefits adjustments, tax | 134 | 132 | 148 | 135 |
Other comprehensive income of unconsolidated affiliates | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | 8 | 8 | 8 | |
Balance at the end of the period | 8 | 8 | 8 | 8 |
Other, net | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | 4 | 5 | 5 | |
Balance at the end of the period | 4 | 5 | 4 | 5 |
Amounts attributable to noncontrolling interests | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | 26 | 36 | 36 | |
Other comprehensive (loss) income before reclassifications, gross | (2) | |||
Other comprehensive income, net of tax | (2) | |||
Balance at the end of the period | 26 | 34 | 26 | 36 |
Accumulated other comprehensive loss | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | (1,362) | (1,316) | (1,316) | |
Other comprehensive (loss) income before reclassifications, gross | (59) | 38 | ||
Tax benefit (expense) | (6) | 2 | ||
Amounts reclassified from accumulated other comprehensive loss, gross | 58 | 15 | ||
Tax benefit (expense) | (14) | (3) | ||
Other comprehensive income, net of tax | (21) | 52 | ||
Balance at the end of the period | $ (1,383) | $ (1,264) | $ (1,362) | $ (1,316) |
OTHER COMPREHENSIVE INCOME - RE
OTHER COMPREHENSIVE INCOME - RECLASSIFICATION DETAILS - HUNTSMAN CORPORATION (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Pension and other postretirement benefits adjustments | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | $ 58 | $ 15 |
Income tax expense | (14) | (3) |
Net of tax | 44 | 12 |
Prior service credit | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | (3) | (3) |
Settlement loss | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | 41 | |
Actuarial loss | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | 20 | 18 |
Actuarial loss | Discontinued Operations | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | $ 1 | $ 1 |
OTHER COMPREHENSIVE INCOME - _2
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, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Components of other comprehensive income | ||||
Other comprehensive income, net of tax | $ (21) | $ 54 | ||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | 2,772 | 2,488 | $ 2,488 | |
Other comprehensive income, net of tax | (20) | 54 | ||
Balance at the end of the period | 3,428 | 2,640 | 2,772 | $ 2,488 |
Total | ||||
Components of other comprehensive income | ||||
Other comprehensive (loss) income before reclassifications, gross | (59) | 40 | ||
Tax benefit | (6) | 2 | ||
Amounts reclassified from accumulated other comprehensive loss, gross | 58 | 15 | ||
Tax benefit (expense) | (14) | (3) | ||
Other comprehensive income, net of tax | (21) | 54 | ||
Total | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | (1,378) | (1,344) | (1,344) | |
Other comprehensive (loss) income before reclassifications, gross | (59) | 40 | ||
Tax benefit | (6) | 1 | ||
Amounts reclassified from accumulated other comprehensive loss, gross | 59 | 16 | ||
Tax benefit (expense) | (14) | (3) | ||
Other comprehensive income, net of tax | (20) | 54 | ||
Balance at the end of the period | (1,398) | (1,290) | (1,378) | (1,344) |
Foreign currency translation adjustment | ||||
Components of other comprehensive income | ||||
Other comprehensive (loss) income before reclassifications, gross | (67) | 40 | ||
Tax benefit | (6) | 2 | ||
Other comprehensive income, net of tax | (73) | 42 | ||
Foreign currency translation adjustment, tax | 74 | 69 | 68 | 71 |
Foreign currency translation adjustment | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | (374) | (376) | (376) | |
Other comprehensive (loss) income before reclassifications, gross | (67) | 40 | ||
Tax benefit | (6) | 1 | ||
Other comprehensive income, net of tax | (73) | 41 | ||
Balance at the end of the period | (447) | (335) | (374) | (376) |
Foreign currency translation adjustment, tax | 61 | 56 | 55 | 57 |
Pension and other postretirement benefits adjustments | ||||
Components of other comprehensive income | ||||
Other comprehensive (loss) income before reclassifications, gross | 8 | |||
Amounts reclassified from accumulated other comprehensive loss, gross | 58 | 15 | ||
Tax benefit (expense) | (14) | (3) | ||
Other comprehensive income, net of tax | 52 | 12 | ||
Pension and other postretirement benefits adjustments, tax | 134 | 132 | 148 | 135 |
Pension and other postretirement benefits adjustments | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | (1,012) | (977) | (977) | |
Other comprehensive (loss) income before reclassifications, gross | 8 | |||
Amounts reclassified from accumulated other comprehensive loss, gross | 59 | 16 | ||
Tax benefit (expense) | (14) | (3) | ||
Other comprehensive income, net of tax | 53 | 13 | ||
Balance at the end of the period | (959) | (964) | (1,012) | (977) |
Pension and other postretirement benefits adjustments, tax | 160 | 158 | 174 | 161 |
Other comprehensive income of unconsolidated affiliates | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | 8 | 8 | 8 | |
Balance at the end of the period | 8 | 8 | 8 | 8 |
Other, net | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | 1 | 1 | ||
Balance at the end of the period | 1 | 1 | ||
Amounts attributable to noncontrolling interests | ||||
Components of other comprehensive income | ||||
Other comprehensive (loss) income before reclassifications, gross | (2) | |||
Other comprehensive income, net of tax | (2) | |||
Amounts attributable to noncontrolling interests | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | 26 | 36 | 36 | |
Other comprehensive (loss) income before reclassifications, gross | (2) | |||
Other comprehensive income, net of tax | (2) | |||
Balance at the end of the period | 26 | 34 | 26 | 36 |
Accumulated other comprehensive loss | ||||
Components of other comprehensive income | ||||
Other comprehensive (loss) income before reclassifications, gross | (59) | 38 | ||
Tax benefit | (6) | 2 | ||
Amounts reclassified from accumulated other comprehensive loss, gross | 58 | 15 | ||
Tax benefit (expense) | (14) | (3) | ||
Other comprehensive income, net of tax | (21) | 52 | ||
Accumulated other comprehensive loss | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||
Components of other comprehensive income | ||||
Balance at the beginning of the period | (1,352) | (1,308) | (1,308) | |
Other comprehensive (loss) income before reclassifications, gross | (59) | 38 | ||
Tax benefit | (6) | 1 | ||
Amounts reclassified from accumulated other comprehensive loss, gross | 59 | 16 | ||
Tax benefit (expense) | (14) | (3) | ||
Other comprehensive income, net of tax | (20) | 52 | ||
Balance at the end of the period | $ (1,372) | $ (1,256) | $ (1,352) | $ (1,308) |
OTHER COMPREHENSIVE INCOME - _3
OTHER COMPREHENSIVE INCOME - RECLASSIFICATION DETAILS - HUNTSMAN INTERNATIONAL (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Pension and other postretirement benefits adjustments | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | $ 58 | $ 15 |
Income tax expense | (14) | (3) |
Net of tax | 44 | 12 |
Pension and other postretirement benefits adjustments | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | 59 | 16 |
Income tax expense | (14) | (3) |
Net of tax | 45 | 13 |
Prior service credit | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | (3) | (3) |
Prior service credit | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | (3) | (3) |
Settlement loss | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | 41 | |
Settlement loss | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | 41 | |
Actuarial loss | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | 20 | 18 |
Actuarial loss | Discontinued Operations | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | 1 | 1 |
Actuarial loss | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | 21 | 19 |
Actuarial loss | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Discontinued Operations | ||
Reclassification from accumulated other comprehensive loss | ||
Total before tax | $ 1 | $ 1 |
ENVIRONMENTAL, HEALTH AND SAF_2
ENVIRONMENTAL, HEALTH AND SAFETY MATTERS (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020USD ($)item | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
ENVIRONMENTAL, HEALTH AND SAFETY MATTERS | |||
Capital expenditures for EHS matters | $ 6 | $ 7 | |
Accrued environmental liabilities | 4 | $ 4 | |
Environmental liabilities, classified as accrued liabilities | 1 | 1 | |
Environmental liabilities, classified as other noncurrent liabilities | $ 3 | $ 3 | |
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 | 9 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS - COMPENSATION COST AND STOCK OPTIONS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
STOCK-BASED COMPENSATION PLANS | ||
Compensation cost | $ 7 | $ 8 |
Total income tax benefit recognized in the statements of operations for stock-based compensation arrangements | $ 1 | $ 5 |
2016 Stock Incentive Plan | ||
STOCK-BASED COMPENSATION PLANS | ||
Shares available for grant | 7,000 | |
Stock options | ||
Weighted average of the assumptions utilized for stock options granted | ||
Dividend yield (as a percent) | 3.00% | 2.90% |
Expected volatility (as a percent) | 53.10% | 54.00% |
Risk-free interest rate (as a percent) | 1.50% | 2.50% |
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) | 5,025 | |
Granted (in shares) | 750 | |
Exercised (in shares) | (154) | |
Forfeited (in shares) | (8) | |
Outstanding at the end of the period (in shares) | 5,613 | |
Exercisable at the end of the period (in shares) | 4,141 | |
Weighted Average Exercise Price | ||
Outstanding at the beginning of the period (in dollars per share) | $ 19.08 | |
Granted (in dollars per share) | 21.54 | |
Exercised (in dollars per share) | 12.55 | |
Forfeited (in dollars per share) | 26.33 | |
Outstanding at the end of the period (in dollars per share) | 19.57 | |
Exercisable at the end of the period (in dollars per share) | $ 18.31 | |
Outstanding, Weighted Average Remaining Contractual Term (years) | 6 years 4 months 24 days | |
Exercisable, Weighted Average Remaining Contractual Term (years) | 5 years 4 months 24 days | |
Outstanding, Aggregate Intrinsic Value (in dollars) | $ 7 | |
Exercisable, Aggregate Intrinsic Value (in dollars) | $ 7 | |
Weighted-average grant-date fair value of stock options granted (in dollars per share) | $ 8.27 | |
Total unrecognized compensation cost | $ 12 | |
Weighted-average period over which cost is expected to be recognized (years) | 2 years 2 months 12 days | |
Total intrinsic value of stock options exercised | $ 1 | $ 1 |
Cash received from stock options exercised | 0 | 1 |
Cash tax benefit from stock options exercised | $ 0 | 0 |
Stock options | Maximum | ||
STOCK-BASED COMPENSATION PLANS | ||
Contractual term | 10 years | |
Outstanding stock-based awards | ||
STOCK-BASED COMPENSATION PLANS | ||
Vesting period | 3 years | |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
STOCK-BASED COMPENSATION PLANS | ||
Compensation cost | $ 6 | 7 |
Total income tax benefit recognized in the statements of operations for stock-based compensation arrangements | $ 1 | $ 5 |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS - NONVESTED SHARES (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Nonvested shares | ||
Additional information | ||
Total unrecognized compensation cost | $ 34 | |
Weighted-average period over which cost is expected to be recognized (years) | 2 years 3 months 18 days | |
Value of share awards vested | $ 23 | $ 23 |
Performance Awards | ||
STOCK-BASED COMPENSATION PLANS | ||
Weighted-average expected volatility rate | 34.00% | 34.60% |
Weighted-average risk-free interest rate (as a percent) | 1.40% | 2.50% |
Additional information | ||
Performance period | 3 years | 3 years |
Number of target shares awarded for grant | 174,200 | |
Number of shares vested above target | 165,489 | |
Grant date fair value of shares vested above target | $ 26.99 | |
Equity Awards | ||
Shares | ||
Nonvested at the beginning of the period (in shares) | 1,640,000 | |
Granted (in shares) | 822,000 | |
Vested (in shares) | (561,000) | |
Forfeited (in shares) | (2,000) | |
Nonvested at the end of the period (in shares) | 1,899,000 | |
Weighted Average Grant-Date Fair Value | ||
Nonvested at the beginning of the period (in dollars per share) | $ 24.61 | |
Granted (in dollars per share) | 21.97 | |
Vested (in dollars per share) | 25.21 | |
Forfeited (in dollars per share) | 25.26 | |
Nonvested at the end of the period (in dollars per share) | $ 23.29 | |
Liability Awards | ||
Shares | ||
Nonvested at the beginning of the period (in shares) | 427,000 | |
Granted (in shares) | 237,000 | |
Vested (in shares) | (216,000) | |
Forfeited (in shares) | (4,000) | |
Nonvested at the end of the period (in shares) | 444,000 | |
Weighted Average Grant-Date Fair Value | ||
Nonvested at the beginning of the period (in dollars per share) | $ 24.80 | |
Granted (in dollars per share) | 21.54 | |
Vested (in dollars per share) | 24.66 | |
Forfeited (in dollars per share) | 25.63 | |
Nonvested at the end of the period (in dollars per share) | $ 23.12 | |
Restricted stock units | ||
Shares | ||
Vested (in shares) | (33,660) | |
Additional information | ||
Units vested but not yet issued | 422,755 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
INCOME TAXES | ||
Income tax expense (benefit) | $ 7 | $ 45 |
Nonoperating Income | ||
INCOME TAXES | ||
Loss (gain) on fair value adjustments to Venator investment not subject to tax | 110 | (76) |
Switzerland | ||
INCOME TAXES | ||
Decrease in net deferred tax assets | 32 | |
Decrease in noncash tax expense | 32 | |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
INCOME TAXES | ||
Income tax expense (benefit) | $ 7 | $ 44 |
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, 2020 | Mar. 31, 2019 | |
Basic and diluted income from continuing operations: | ||
(Loss) income from continuing operations attributable to Huntsman Corporation | $ (72) | $ 96 |
Basic and diluted net income: | ||
Net income (loss) attributable to Huntsman Corporation | $ 705 | $ 119 |
Denominator: | ||
Weighted average shares outstanding | 223.2 | 233.1 |
Dilutive shares: | ||
Stock-based awards (in shares) | 2 | |
Total weighted average shares outstanding, including dilutive shares | 223.2 | 235.1 |
NET INCOME PER SHARE - INFORMAT
NET INCOME PER SHARE - INFORMATION ON STOCK-BASED AWARDS (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Outstanding stock-based awards | ||
Antidilutive shares not included in the computation of income (loss) per share | ||
Weighted average equivalent shares | 5.6 | 3.1 |
OPERATING SEGMENT INFORMATION -
OPERATING SEGMENT INFORMATION - FINANCIAL INFORMATION BY SEGMENT (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | |
OPERATING SEGMENT INFORMATION | ||
Number of reportable segments | segment | 4 | |
Total revenues | $ 1,593 | $ 1,669 |
Segment adjusted EBITDA | 165 | 204 |
Reconciliation of adjusted EBITDA to net income: | ||
Interest expense, net - continuing operations | (18) | (30) |
Income tax expense-continuing operations | (7) | (45) |
Income tax expense-discontinued operations | (238) | (5) |
Depreciation and amortization - continuing operations | (67) | (67) |
Depreciation and amortization - discontinued operations | (23) | |
Net income attributable to noncontrolling interests | 3 | 12 |
Other adjustments: | ||
Business acquisition and integration expenses and purchase accounting inventory adjustments | (13) | (1) |
EBITDA from discontinued operations | 1,015 | 51 |
Fair value adjustments to Venator investment | (110) | 76 |
Loss on early extinguishment of debt | (23) | |
Certain legal settlements and related expenses | (2) | |
Gain on sale of businesses/assets | 2 | |
Certain nonrecurring information technology project implementation costs | (1) | |
Amortization of pension and postretirement actuarial losses | (18) | (17) |
Restructuring, impairment and plant closing and transition costs | (3) | (1) |
Net income | 708 | 131 |
Operating segments | Polyurethanes | ||
OPERATING SEGMENT INFORMATION | ||
Total revenues | 888 | 924 |
Segment adjusted EBITDA | 84 | 124 |
Operating segments | Performance Products | ||
OPERATING SEGMENT INFORMATION | ||
Total revenues | 292 | 300 |
Segment adjusted EBITDA | 58 | 45 |
Operating segments | Advanced Materials | ||
OPERATING SEGMENT INFORMATION | ||
Total revenues | 241 | 272 |
Segment adjusted EBITDA | 48 | 53 |
Operating segments | Textile Effects | ||
OPERATING SEGMENT INFORMATION | ||
Total revenues | 180 | 189 |
Segment adjusted EBITDA | 20 | 22 |
Corporate and eliminations | ||
OPERATING SEGMENT INFORMATION | ||
Total revenues | (8) | (16) |
Corporate and other | ||
OPERATING SEGMENT INFORMATION | ||
Segment adjusted EBITDA | (45) | (40) |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
OPERATING SEGMENT INFORMATION | ||
Total revenues | 1,593 | 1,669 |
Segment adjusted EBITDA | 166 | 206 |
Reconciliation of adjusted EBITDA to net income: | ||
Interest expense, net - continuing operations | (20) | (35) |
Income tax expense-continuing operations | (7) | (44) |
Income tax expense-discontinued operations | (238) | (5) |
Depreciation and amortization - continuing operations | (67) | (67) |
Depreciation and amortization - discontinued operations | (23) | |
Net income attributable to noncontrolling interests | 3 | 12 |
Other adjustments: | ||
Business acquisition and integration expenses and purchase accounting inventory adjustments | (13) | (1) |
EBITDA from discontinued operations | 1,015 | 51 |
Fair value adjustments to Venator investment | (110) | 76 |
Loss on early extinguishment of debt | (23) | |
Certain legal settlements and related expenses | (2) | |
Gain on sale of businesses/assets | 2 | |
Certain nonrecurring information technology project implementation costs | (1) | |
Amortization of pension and postretirement actuarial losses | (18) | (18) |
Restructuring, impairment and plant closing and transition costs | (3) | (1) |
Net income | 707 | 128 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Operating segments | Polyurethanes | ||
OPERATING SEGMENT INFORMATION | ||
Segment adjusted EBITDA | 84 | 124 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Operating segments | Performance Products | ||
OPERATING SEGMENT INFORMATION | ||
Segment adjusted EBITDA | 58 | 45 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Operating segments | Advanced Materials | ||
OPERATING SEGMENT INFORMATION | ||
Segment adjusted EBITDA | 48 | 53 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Operating segments | Textile Effects | ||
OPERATING SEGMENT INFORMATION | ||
Segment adjusted EBITDA | 20 | 22 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Corporate and other | ||
OPERATING SEGMENT INFORMATION | ||
Segment adjusted EBITDA | $ (44) | $ (38) |