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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 USD LIBOR, EURIBOR or SONIA (Sterling Overnight Interbank Average Rate). In anticipation of the transition away from USD LIBOR, the amendments we made in July 2021 to our A/R Programs incorporated replacement rates for the USD LIBOR.
Corporate and other costs, net 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.
Includes costs associated with transition activities related primarily to our Corporate program to optimize our global approach to leverage shared services capabilities.
Pension and other postretirement benefits amounts in parentheses indicate credits on our condensed consolidated statements of operations.
At September 30, 2022 and December 31, 2021, respectively, $22 and $1 of cash and cash equivalents, $4 and $12 of accounts and notes receivable (net), $60 and $64 of inventories, $161 each of property, plant and equipment (net), $29 and $23 of other noncurrent assets, $126 and $146 of accounts payable, $11 and $13 of accrued liabilities, $10 each of current portion of debt, $10 and $6 of current operating lease liabilities, $28 and $35 of long-term debt, $21 and $20 of noncurrent operating lease liabilities and $45 and $46 of other noncurrent liabilities from consolidated variable interest entities are included in the respective balance sheet captions above. See "Note 6. Variable Interest Entities."
Amounts are net of tax of $56 million as of both September 30, 2022 and January 1, 2022, respectively.
A total of 193,623 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, 2021. During the nine months ended September 30, 2022, an additional 96,814 performance share unit awards with a grant date fair value of $29.68 were issued due to the target performance criteria being exceeded.
Total assets and liabilities held for sale as of September 30, 2022 are classified as current because it is probable that the sale of our Textile Effects Business will close within a year.
As of September 30, 2022, a total of 106,285 restricted stock units were vested but not yet issued, of which 7,066 vested during the nine months ended September 30, 2022. 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.
Amounts are net of tax of $139 million and $153 million as of September 30, 2021 and January 1, 2021, respectively.
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, certain Corporate and other items and income from discontinued operations, as well as eliminating the following adjustments: (a) business acquisition and integration expenses and purchase accounting inventory adjustments; (b) fair value adjustments to Venator investment, net; (c) loss on early extinguishment of debt; (d) certain legal and other settlements and related expenses; (e) costs associated with the Albemarle Settlement, net; (f) (loss) gain on sale of business/assets; (g) income from transition services arrangements related to the sale of our Chemical Intermediates Businesses to Indorama; (h) certain nonrecurring information technology project implementation costs; (i) amortization of pension and postretirement actuarial losses; (j) plant incident remediation credits (costs); and (k) restructuring, impairment, plant closing and transition costs.
As of September 30, 2022, we had approximately $8 million (U.S. dollar equivalents) of letters of credit issued and outstanding under our U.S. A/R Program.
On September 30, 2022, we had an additional $11 million (U.S. dollar equivalents) of letters of credit and bank guarantees issued and outstanding under our 2022 Revolving Credit Facility.
Interest rates on borrowings under the 2022 Revolving Credit Facility vary based on the type of loan and Huntsman International’s debt ratings. The representative interest rate for U.S. dollar borrowings as of September 30, 2022 was 1.475% above term SOFR.
Amounts are net of tax of $43 million as of both September 30, 2021 and January 1, 2021.
Amounts are net of tax of $97 million and $105 million as of September 30, 2022 and January 1, 2022, respectively.
Amounts are net of tax of $164 million and $178 million as of September 30, 2021 and January 1, 2021, respectively.
During the nine months ended September 30, 2021, stock options were only granted during the first quarter.
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.
See table below for details about these reclassifications.
Amounts include approximately $4 million of actuarial losses related to discontinued operations for both of the three months ended September 30, 2022 and 2021. Amounts contain approximately $12 million and $13 million of actuarial losses related to discontinued operations for the nine months ended September 30, 2022 and 2021, respectively.
Amounts are net of tax of $43 million as of September 30, 2022 and January 1, 2022, respectively.
Geographic information for revenues is based upon countries into which product is sold.
These accumulated other comprehensive loss components are included in the computation of net periodic pension costs. See “Note 12. Employee Benefit Plans.”
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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-Q
(Mark One) | |
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|
For the quarterly period ended September 30, 2022 |
|
OR |
|
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|
For the transition period from to |
Commission File Number | | Exact Name of Registrant as Specified in its Charter, Principal Office Address and Telephone Number | | State of Incorporation or Organization | | I.R.S. Employer Identification No. |
001-32427 | | Huntsman Corporation 10003 Woodloch Forest Drive The Woodlands, Texas 77380 (281) 719-6000 | | Delaware | | 42-1648585 |
333-85141 | | Huntsman International LLC 10003 Woodloch Forest Drive The Woodlands, Texas 77380 (281) 719-6000 | | Delaware | | 87-0630358 |
Securities registered pursuant to Section 12(b) of the Act:
Registrant | | Title of each class | | Trading Symbol | | Name of each exchange on which registered |
Huntsman Corporation | | Common Stock, par value $0.01 per share | | HUN | | New York Stock Exchange |
Huntsman International LLC | | NONE | | NONE | | NONE |
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Huntsman Corporation | Yes ☒ | No ☐ |
Huntsman International LLC | Yes ☒ | No ☐ |
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Huntsman Corporation | Yes ☒ | No ☐ |
Huntsman International LLC | Yes ☒ | No ☐ |
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Huntsman Corporation | Large accelerated filer ☒ | Accelerated filer ☐ | Non-accelerated filer ☐ | Smaller reporting company ☐ | Emerging growth company ☐ |
Huntsman International LLC | Large accelerated filer ☐ | Accelerated filer ☐ | Non-accelerated filer ☒ | Smaller reporting company ☐ | Emerging Growth company ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Huntsman Corporation | | ☐ |
Huntsman International LLC | | ☐ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Huntsman Corporation | Yes ☐ | No ☒ |
Huntsman International LLC | Yes ☐ | No ☒ |
On October 25, 2022, 192,099,455 shares of common stock of Huntsman Corporation were outstanding and 2,728 units of membership interests of Huntsman International LLC were outstanding. There is no trading market for Huntsman International LLC’s units of membership interests. All of Huntsman International LLC’s units of membership interests are held by Huntsman Corporation.
This Quarterly Report on Form 10-Q presents information for two registrants: Huntsman Corporation and Huntsman International LLC. Huntsman International LLC is a wholly-owned subsidiary of Huntsman Corporation and is the principal operating company of Huntsman Corporation. The information reflected in this Quarterly Report on Form 10-Q is equally applicable to both Huntsman Corporation and Huntsman International LLC, except where otherwise indicated. Huntsman International LLC meets the conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q and, to the extent applicable, is therefore filing this form with a reduced disclosure format.
HUNTSMAN CORPORATION AND SUBSIDIARIES
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTERLY PERIOD
ENDED September 30, 2022
TABLE OF CONTENTS
FORWARD-LOOKING STATEMENTS
Certain information set forth in this report contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than historical factual information are forward-looking statements, including without limitation statements regarding: projections of revenue, expenses, profit, profit margins, tax rates, tax provisions, cash flows, pension and benefit obligations and funding requirements, our liquidity position or other projected financial measures; projected impact of COVID-19 on our operations and future financial results; projected impact of the potential expansion of the Russia-Ukraine conflict on our operations and future financial results; management’s plans and strategies for future operations, including statements relating to anticipated operating performance, cost reductions, restructuring activities, new product and service developments, competitive strengths or market position, acquisitions, divestitures, business separations, spin-offs, or other distributions, strategic opportunities, securities offerings, stock repurchases, dividends and executive compensation; growth, declines and other trends in markets we sell into; new or modified laws, regulations and accounting pronouncements; outstanding claims, legal proceedings, tax audits and assessments and other contingent liabilities; foreign currency exchange rates and fluctuations in those rates; general economic and capital markets conditions; the timing of any of the foregoing; assumptions underlying any of the foregoing; and any other statements that address events or developments that we intend or believe will or may occur in the future. In some cases, forward-looking statements can be identified by terminology such as “believes,” “expects,” “may,” “will,” “should,” “anticipates” or “intends” or the negative of such terms or other comparable terminology, or by discussions of strategy. We may also make additional forward-looking statements from time to time. All such subsequent forward-looking statements, whether written or oral, by us or on our behalf, are also expressly qualified by these cautionary statements.
All forward-looking statements, including without limitation any projections derived from management’s examination of historical operating trends, are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them, but there can be no assurance that management’s expectations, beliefs and projections will be achieved. All forward-looking statements apply only as of the date made. We undertake no obligation to publicly update or revise forward-looking statements whether because of new information, future events or otherwise, except as required by securities and other applicable law.
There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in or contemplated by this report. Any forward-looking statements should be considered in light of the risks set forth in “Part II. Item 1A. Risk Factors” below and “Part I. Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021.
PART I. FINANCIAL INFORMATION
ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
HUNTSMAN CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In Millions, Except Share and Per Share Amounts)
| | September 30, | | | December 31, | |
| | 2022 | | | 2021 | |
ASSETS | | | | | | | | |
Current assets: | | | | | | | | |
Cash and cash equivalents(a) | | $ | 515 | | | $ | 1,041 | |
Accounts and notes receivable (net of allowance for doubtful accounts of $11 and $12, respectively), ($348 and $324 pledged as collateral, respectively)(a) | | | 981 | | | | 988 | |
Accounts receivable from affiliates | | | 23 | | | | 27 | |
Inventories(a) | | | 1,079 | | | | 1,038 | |
Receivable associated with the Albemarle Settlement | | | — | | | | 333 | |
Other current assets | | | 115 | | | | 155 | |
Current assets held for sale | | | 483 | | | | 346 | |
Total current assets | | | 3,196 | | | | 3,928 | |
Property, plant and equipment, net(a) | | | 2,288 | | | | 2,443 | |
Investment in unconsolidated affiliates | | | 430 | | | | 470 | |
Intangible assets, net | | | 433 | | | | 469 | |
Goodwill | | | 636 | | | | 650 | |
Deferred income taxes | | | 167 | | | | 180 | |
Operating lease right-of-use assets | | | 359 | | | | 381 | |
Other noncurrent assets(a) | | | 623 | | | | 689 | |
Noncurrent assets held for sale | | | — | | | | 182 | |
Total assets | | $ | 8,132 | | | $ | 9,392 | |
| | | | | | | | |
LIABILITIES AND EQUITY | | | | | | | | |
Current liabilities: | | | | | | | | |
Accounts payable(a) | | $ | 865 | | | $ | 1,054 | |
Accounts payable to affiliates | | | 33 | | | | 60 | |
Accrued liabilities(a) | | | 393 | | | | 713 | |
Current portion of debt(a) | | | 12 | | | | 12 | |
Current operating lease liabilities(a) | | | 50 | | | | 49 | |
Current liabilities held for sale | | | 242 | | | | 163 | |
Total current liabilities | | | 1,595 | | | | 2,051 | |
Long-term debt(a) | | | 1,476 | | | | 1,538 | |
Deferred income taxes | | | 249 | | | | 161 | |
Noncurrent operating lease liabilities(a) | | | 326 | | | | 346 | |
Other noncurrent liabilities(a) | | | 502 | | | | 586 | |
Noncurrent liabilities held for sale | | | — | | | | 151 | |
Total liabilities | | | 4,148 | | | | 4,833 | |
Commitments and contingencies (Notes 15 and 16) | | | | | | | | |
Equity | | | | | | | | |
Huntsman Corporation stockholders’ equity: | | | | | | | | |
Common stock $0.01 par value, 1,200,000,000 shares authorized, 261,142,535 and 259,701,770 shares issued and 192,757,360 and 214,170,287 shares outstanding, respectively | | | 3 | | | | 3 | |
Additional paid-in capital | | | 4,155 | | | | 4,102 | |
Treasury stock, 68,385,175 and 45,531,489 shares, respectively | | | (1,686 | ) | | | (934 | ) |
Unearned stock-based compensation | | | (37 | ) | | | (25 | ) |
Retained earnings | | | 2,836 | | | | 2,435 | |
Accumulated other comprehensive loss | | | (1,497 | ) | | | (1,203 | ) |
Total Huntsman Corporation stockholders’ equity | | | 3,774 | | | | 4,378 | |
Noncontrolling interests in subsidiaries | | | 210 | | | | 181 | |
Total equity | | | 3,984 | | | | 4,559 | |
Total liabilities and equity | | $ | 8,132 | | | $ | 9,392 | |
(a) |
At September 30, 2022 and December 31, 2021, respectively, $22 and $1 of cash and cash equivalents, $4 and $12 of accounts and notes receivable (net), $60 and $64 of inventories, $161 each of property, plant and equipment (net), $29 and $23 of other noncurrent assets, $126 and $146 of accounts payable, $11 and $13 of accrued liabilities, $10 each of current portion of debt, $10 and $6 of current operating lease liabilities, $28 and $35 of long-term debt, $21 and $20 of noncurrent operating lease liabilities and $45 and $46 of other noncurrent liabilities from consolidated variable interest entities are included in the respective balance sheet captions above. See “Note 6. Variable Interest Entities.” |
See accompanying notes to condensed consolidated financial statements.
HUNTSMAN CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Millions, Except Per Share Amounts)
|
|
Three months |
|
|
Nine months |
|
|
|
ended |
|
|
ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales, services and fees, net |
|
$ |
1,946 |
|
|
$ |
2,042 |
|
|
$ |
6,189 |
|
|
$ |
5,418 |
|
Related party sales |
|
|
65 |
|
|
|
55 |
|
|
|
184 |
|
|
|
140 |
|
Total revenues |
|
|
2,011 |
|
|
|
2,097 |
|
|
|
6,373 |
|
|
|
5,558 |
|
Cost of goods sold |
|
|
1,662 |
|
|
|
1,660 |
|
|
|
5,017 |
|
|
|
4,397 |
|
Gross profit |
|
|
349 |
|
|
|
437 |
|
|
|
1,356 |
|
|
|
1,161 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
165 |
|
|
|
176 |
|
|
|
532 |
|
|
|
536 |
|
Research and development |
|
|
31 |
|
|
|
35 |
|
|
|
97 |
|
|
|
102 |
|
Restructuring, impairment and plant closing costs (credits) |
|
|
12 |
|
|
|
(1 |
) |
|
|
36 |
|
|
|
34 |
|
Gain on sale of India-based DIY business |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(28 |
) |
Other operating expense (income), net |
|
|
3 |
|
|
|
(3 |
) |
|
|
(8 |
) |
|
|
(13 |
) |
Total operating expenses |
|
|
211 |
|
|
|
207 |
|
|
|
657 |
|
|
|
631 |
|
Operating income |
|
|
138 |
|
|
|
230 |
|
|
|
699 |
|
|
|
530 |
|
Interest expense, net |
|
|
(16 |
) |
|
|
(15 |
) |
|
|
(46 |
) |
|
|
(52 |
) |
Equity in income of investment in unconsolidated affiliates |
|
|
21 |
|
|
|
34 |
|
|
|
55 |
|
|
|
118 |
|
Fair value adjustments to Venator investment, net |
|
|
(7 |
) |
|
|
(3 |
) |
|
|
(9 |
) |
|
|
(28 |
) |
Loss on early extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(27 |
) |
Other income, net |
|
|
10 |
|
|
|
7 |
|
|
|
23 |
|
|
|
21 |
|
Income from continuing operations before income taxes |
|
|
146 |
|
|
|
253 |
|
|
|
722 |
|
|
|
562 |
|
Income tax expense |
|
|
(30 |
) |
|
|
(34 |
) |
|
|
(155 |
) |
|
|
(101 |
) |
Income from continuing operations |
|
|
116 |
|
|
|
219 |
|
|
|
567 |
|
|
|
461 |
|
(Loss) income from discontinued operations, net of tax |
|
|
(1 |
) |
|
|
6 |
|
|
|
30 |
|
|
|
36 |
|
Net income |
|
|
115 |
|
|
|
225 |
|
|
|
597 |
|
|
|
497 |
|
Net income attributable to noncontrolling interests |
|
|
(15 |
) |
|
|
(16 |
) |
|
|
(46 |
) |
|
|
(49 |
) |
Net income attributable to Huntsman Corporation |
|
$ |
100 |
|
|
$ |
209 |
|
|
$ |
551 |
|
|
$ |
448 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations attributable to Huntsman Corporation common stockholders |
|
$ |
0.52 |
|
|
$ |
0.93 |
|
|
$ |
2.54 |
|
|
$ |
1.87 |
|
(Loss) income from discontinued operations attributable to Huntsman Corporation common stockholders, net of tax |
|
|
(0.01 |
) |
|
|
0.02 |
|
|
|
0.15 |
|
|
|
0.16 |
|
Net income attributable to Huntsman Corporation common stockholders |
|
$ |
0.51 |
|
|
$ |
0.95 |
|
|
$ |
2.69 |
|
|
$ |
2.03 |
|
Weighted average shares |
|
|
197.7 |
|
|
|
219.4 |
|
|
|
205.2 |
|
|
|
220.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations attributable to Huntsman Corporation common stockholders |
|
$ |
0.51 |
|
|
$ |
0.92 |
|
|
$ |
2.52 |
|
|
$ |
1.86 |
|
(Loss) income from discontinued operations attributable to Huntsman Corporation common stockholders, net of tax |
|
|
(0.01 |
) |
|
|
0.02 |
|
|
|
0.14 |
|
|
|
0.16 |
|
Net income attributable to Huntsman Corporation common stockholders |
|
$ |
0.50 |
|
|
$ |
0.94 |
|
|
$ |
2.66 |
|
|
$ |
2.02 |
|
Weighted average shares |
|
|
199.2 |
|
|
|
221.3 |
|
|
|
207.2 |
|
|
|
222.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to Huntsman Corporation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
$ |
101 |
|
|
$ |
203 |
|
|
$ |
521 |
|
|
$ |
412 |
|
(Loss) income from discontinued operations, net of tax |
|
|
(1 |
) |
|
|
6 |
|
|
|
30 |
|
|
|
36 |
|
Net income |
|
$ |
100 |
|
|
$ |
209 |
|
|
$ |
551 |
|
|
$ |
448 |
|
See accompanying notes to condensed consolidated financial statements.
HUNTSMAN CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(In Millions)
|
|
Three months |
|
|
Nine months |
|
|
|
ended |
|
|
ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net income |
|
$ |
115 |
|
|
$ |
225 |
|
|
$ |
597 |
|
|
$ |
497 |
|
Other comprehensive (loss) income, net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translations adjustments |
|
|
(204 |
) |
|
|
(36 |
) |
|
|
(338 |
) |
|
|
(42 |
) |
Pension and other postretirement benefits adjustments |
|
|
10 |
|
|
|
17 |
|
|
|
28 |
|
|
|
52 |
|
Other, net |
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
Other comprehensive (loss) income, net of tax |
|
|
(194 |
) |
|
|
(19 |
) |
|
|
(311 |
) |
|
|
10 |
|
Comprehensive (loss) income |
|
|
(79 |
) |
|
|
206 |
|
|
|
286 |
|
|
|
507 |
|
Comprehensive loss (income) attributable to noncontrolling interests |
|
|
(6 |
) |
|
|
(17 |
) |
|
|
(29 |
) |
|
|
(51 |
) |
Comprehensive (loss) income attributable to Huntsman Corporation |
|
$ |
(85 |
) |
|
$ |
189 |
|
|
$ |
257 |
|
|
$ |
456 |
|
HUNTSMAN CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(In Millions, Except Share Amounts)
| | Huntsman Corporation Stockholders' Equity | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | Accumulated | | | | | | | | | |
| | Shares | | | | | | | Additional | | | | | | | Unearned | | | | | | | other | | | Noncontrolling | | | | | |
| | common | | | Common | | | paid-in | | | Treasury | | | stock-based | | | Retained | | | comprehensive | | | interests in | | | Total | |
| | stock | | | stock | | | capital | | | stock | | | compensation | | | earnings | | | loss | | | subsidiaries | | | equity | |
Balance, January 1, 2022 | | | 214,170,287 | | | $ | 3 | | | $ | 4,102 | | | $ | (934 | ) | | $ | (25 | ) | | $ | 2,435 | | | $ | (1,203 | ) | | $ | 181 | | | $ | 4,559 | |
Net income | | | — | | | | — | | | | — | | | | — | | | | — | | | | 223 | | | | — | | | | 17 | | | | 240 | |
Other comprehensive loss | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | (11 | ) | | | (1 | ) | | | (12 | ) |
Issuance of nonvested stock awards | | | — | | | | — | | | | 32 | | | | — | | | | (32 | ) | | | — | | | | — | | | | — | | | | — | |
Vesting of stock awards | | | 1,327,568 | | | | — | | | | 7 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 7 | |
Recognition of stock-based compensation | | | — | | | | — | | | | 1 | | | | — | | | | 8 | | | | — | | | | — | | | | — | | | | 9 | |
Repurchase and cancellation of stock awards | | | (361,250 | ) | | | — | | | | — | | | | — | | | | — | | | | (13 | ) | | | — | | | | — | | | | (13 | ) |
Stock options exercised | | | 387,899 | | | | — | | | | 10 | | | | — | | | | — | | | | (5 | ) | | | — | | | | — | | | | 5 | |
Treasury stock repurchased | | | (5,549,348 | ) | | | — | | | | — | | | | (210 | ) | | | — | | | | — | | | | — | | | | — | | | | (210 | ) |
Dividends declared on common stock ($0.2125 per share) | | | — | | | | — | | | | — | | | | — | | | | — | | | | (45 | ) | | | — | | | | — | | | | (45 | ) |
Balance, March 31, 2022 | | | 209,975,156 | | | | 3 | | | | 4,152 | | | | (1,144 | ) | | | (49 | ) | | | 2,595 | | | | (1,214 | ) | | | 197 | | | | 4,540 | |
Net income | | | — | | | | — | | | | — | | | | — | | | | — | | | | 228 | | | | — | | | | 14 | | | | 242 | |
Other comprehensive loss | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | (98 | ) | | | (7 | ) | | | (105 | ) |
Vesting of stock awards | | | 4,045 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Recognition of stock-based compensation | | | — | | | | — | | | | 1 | | | | — | | | | 8 | | | | — | | | | — | | | | — | | | | 9 | |
Repurchase and cancellation of stock awards | | | (2,416 | ) | | | — | | | | — | | | | — | | | | — | | | | (1 | ) | | | — | | | | — | | | | (1 | ) |
Stock options exercised | | | 66,840 | | | | — | | | | 1 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 1 | |
Treasury stock repurchased | | | (8,371,423 | ) | | | — | | | | — | | | | (291 | ) | | | — | | | | — | | | | — | | | | — | | | | (291 | ) |
Dividends declared on common stock ($0.2125 per share) | | | — | | | | — | | | | — | | | | — | | | | — | | | | (44 | ) | | | — | | | | — | | | | (44 | ) |
Balance, June 30, 2022 | | | 201,672,202 | | | | 3 | | | | 4,154 | | | | (1,435 | ) | | | (41 | ) | | | 2,778 | | | | (1,312 | ) | | | 204 | | | | 4,351 | |
Net income | | | — | | | | — | | | | — | | | | — | | | | — | | | | 100 | | | | — | | | | 15 | | | | 115 | |
Other comprehensive loss | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | (185 | ) | | | (9 | ) | | | (194 | ) |
Vesting of stock awards | | | 10,174 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Recognition of stock-based compensation | | | — | | | | — | | | | 1 | | | | — | | | | 4 | | | | — | | | | — | | | | — | | | | 5 | |
Repurchase and cancellation of stock awards | | | (2,533 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Stock options exercised | | | 10,432 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Treasury stock repurchased | | | (8,932,915 | ) | | | — | | | | — | | | | (251 | ) | | | — | | | | — | | | | — | | | | — | | | | (251 | ) |
Dividends declared on common stock ($0.2125 per share) | | | — | | | | — | | | | — | | | | — | | | | — | | | | (42 | ) | | | — | | | | — | | | | (42 | ) |
Balance, September 30, 2022 | | | 192,757,360 | | | $ | 3 | | | $ | 4,155 | | | $ | (1,686 | ) | | $ | (37 | ) | | $ | 2,836 | | | $ | (1,497 | ) | | $ | 210 | | | $ | 3,984 | |
HUNTSMAN CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(In Millions, Except Share Amounts)
| | Huntsman Corporation Stockholders' Equity | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | Accumulated | | | | | | | | | |
| | Shares | | | | | | | Additional | | | | | | | Unearned | | | | | | | other | | | Noncontrolling | | | | | |
| | common | | | Common | | | paid-in | | | Treasury | | | stock-based | | | Retained | | | comprehensive | | | interests in | | | Total | |
| | stock | | | stock | | | capital | | | stock | | | compensation | | | earnings | | | loss | | | subsidiaries | | | equity | |
Balance, January 1, 2021 | | | 220,046,262 | | | $ | 3 | | | $ | 4,048 | | | $ | (731 | ) | | $ | (19 | ) | | $ | 1,564 | | | $ | (1,346 | ) | | $ | 154 | | | $ | 3,673 | |
Net income | | | — | | | | — | | | | — | | | | — | | | | — | | | | 83 | | | | — | | | | 17 | | | | 100 | |
Other comprehensive loss | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | (13 | ) | | | — | | | | (13 | ) |
Issuance of nonvested stock awards | | | — | | | | — | | | | 25 | | | | — | | | | (25 | ) | | | — | | | | — | | | | — | | | | — | |
Vesting of stock awards | | | 664,818 | | | | — | | | | 5 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 5 | |
Recognition of stock-based compensation | | | — | | | | — | | | | 2 | | | | — | | | | 6 | | | | — | | | | — | | | | — | | | | 8 | |
Repurchase and cancellation of stock awards | | | (202,961 | ) | | | — | | | | — | | | | — | | | | — | | | | (6 | ) | | | — | | | | — | | | | (6 | ) |
Stock options exercised | | | 204,005 | | | | — | | | | 5 | | | | — | | | | — | | | | (2 | ) | | | — | | | | — | | | | 3 | |
Dividends declared on common stock ($0.1625 per share) | | | — | | | | — | | | | — | | | | — | | | | — | | | | (36 | ) | | | — | | | | — | | | | (36 | ) |
Balance, March 31, 2021 | | | 220,712,124 | | | | 3 | | | | 4,085 | | | | (731 | ) | | | (38 | ) | | | 1,603 | | | | (1,359 | ) | | | 171 | | | | 3,734 | |
Net income | | | — | | | | — | | | | — | | | | — | | | | — | | | | 156 | | | | — | | | | 16 | | | | 172 | |
Other comprehensive income | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 41 | | | | 1 | | | | 42 | |
Vesting of stock awards | | | 3,732 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Recognition of stock-based compensation | | | — | | | | — | | | | 2 | | | | — | | | | 4 | | | | — | | | | — | | | | — | | | | 6 | |
Repurchase and cancellation of stock awards | | | (19,912 | ) | | | — | | | | — | | | | — | | | | — | | | | (1 | ) | | | — | | | | — | | | | (1 | ) |
Stock options exercised | | | 263,962 | | | | — | | | | 6 | | | | — | | | | — | | | | (3 | ) | | | — | | | | — | | | | 3 | |
Dividends declared to noncontrolling interests | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | (30 | ) | | | (30 | ) |
Dividends declared on common stock ($0.1875 per share) | | | — | | | | — | | | | — | | | | — | | | | — | | | | (41 | ) | | | — | | | | — | | | | (41 | ) |
Balance, June 30, 2021 | | | 220,959,906 | | | | 3 | | | | 4,093 | | | | (731 | ) | | | (34 | ) | | | 1,714 | | | | (1,318 | ) | | | 158 | | | | 3,885 | |
Net income | | | — | | | | — | | | | — | | | | — | | | | — | | | | 209 | | | | — | | | | 16 | | | | 225 | |
Other comprehensive (loss) income | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | (20 | ) | | | 1 | | | | (19 | ) |
Issuance of nonvested stock awards | | | — | | | | — | | | | 1 | | | | — | | | | (1 | ) | | | — | | | | — | | | | — | | | | — | |
Vesting of stock awards | | | 7,695 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Recognition of stock-based compensation | | | — | | | | — | | | | 1 | | | | — | | | | 5 | | | | — | | | | — | | | | — | | | | 6 | |
Repurchase and cancellation of stock awards | | | (1,869 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Stock options exercised | | | 34,372 | | | | — | | | | 1 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 1 | |
Treasury stock repurchased | | | (3,971,784 | ) | | | — | | | | — | | | | (102 | ) | | | — | | | | — | | | | — | | | | — | | | | (102 | ) |
Dividends declared on common stock ($0.1875 per share) | | | — | | | | — | | | | — | | | | — | | | | — | | | | (42 | ) | | | — | | | | — | | | | (42 | ) |
Balance, September 30, 2021 | | | 217,028,320 | | | $ | 3 | | | $ | 4,096 | | | $ | (833 | ) | | $ | (30 | ) | | $ | 1,881 | | | $ | (1,338 | ) | | $ | 175 | | | $ | 3,954 | |
See accompanying notes to condensed consolidated financial statements.
HUNTSMAN CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Millions)
| | Nine months | |
| | ended | |
| | September 30, | |
| | 2022 | | | 2021 | |
Operating Activities: | | | | | | | | |
Net income | | $ | 597 | | | $ | 497 | |
Less: Income from discontinued operations, net of tax | | | (30 | ) | | | (36 | ) |
Income from continuing operations | | | 567 | | | | 461 | |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities from continuing operations: | | | | | | | | |
Equity in income of investment in unconsolidated affiliates | | | (55 | ) | | | (118 | ) |
Unrealized net losses on fair value adjustments to Venator investment | | | 9 | | | | 28 | |
Cash received from return on investment in unconsolidated subsidiary | | | 61 | | | | 31 | |
Depreciation and amortization | | | 207 | | | | 205 | |
Noncash lease expense | | | 47 | | | | 42 | |
Gain on disposal of businesses/assets | | | — | | | | (28 | ) |
Loss on early extinguishment of debt | | | — | | | | 27 | |
Noncash restructuring and impairment charges | | | (1 | ) | | | 14 | |
Deferred income taxes | | | 81 | | | | (22 | ) |
Stock-based compensation | | | 26 | | | | 23 | |
Other, net | | | (15 | ) | | | (6 | ) |
Changes in operating assets and liabilities: | | | | | | | | |
Accounts and notes receivable | | | (60 | ) | | | (335 | ) |
Inventories | | | (128 | ) | | | (270 | ) |
Other current assets | | | 357 | | | | 20 | |
Other noncurrent assets | | | (14 | ) | | | (84 | ) |
Accounts payable | | | (113 | ) | | | 134 | |
Accrued liabilities | | | (292 | ) | | | 88 | |
Other noncurrent liabilities | | | (82 | ) | | | (28 | ) |
Net cash provided by operating activities from continuing operations | | | 595 | | | | 182 | |
Net cash provided by (used in) operating activities from discontinued operations | | | 9 | | | | (20 | ) |
Net cash provided by operating activities | | | 604 | | | | 162 | |
| | | | | | | | |
Investing Activities: | | | | | | | | |
Capital expenditures | | | (186 | ) | | | (241 | ) |
Cash received from sale of business | | | — | | | | 43 | |
Acquisition of business, net of cash acquired | | | — | | | | (245 | ) |
Insurance proceeds for recovery of property damage | | | 5 | | | | 3 | |
Other, net | | | 5 | | | | 10 | |
Net cash used in investing activities from continuing operations | | | (176 | ) | | | (430 | ) |
Net cash used in investing activities from discontinued operations | | | (12 | ) | | | (9 | ) |
Net cash used in investing activities | | | (188 | ) | | | (439 | ) |
| | | | | | | | |
Financing Activities: | | | | | | | | |
Net borrowings on revolving loan facilities | | | — | | | | 8 | |
Proceeds from issuance of long-term debt | | | — | | | | 427 | |
Repayments of long-term debt | | | (8 | ) | | | (965 | ) |
Debt issuance costs paid | | | — | | | | (4 | ) |
Dividends paid to noncontrolling interests | | | — | | | | (30 | ) |
Dividends paid to common stockholders | | | (132 | ) | | | (119 | ) |
Repurchase and cancellation of awards | | | (14 | ) | | | (7 | ) |
Repurchase of common stock | | | (755 | ) | | | (102 | ) |
Proceeds from issuance of common stock | | | 6 | | | | 7 | |
Costs of early extinguishment of debt | | | — | | | | (26 | ) |
Other, net | | | (2 | ) | | | 2 | |
Net cash used in financing activities | | | (905 | ) | | | (809 | ) |
Effect of exchange rate changes on cash | | | (37 | ) | | | (2 | ) |
Decrease in cash and cash equivalents | | | (526 | ) | | | (1,088 | ) |
Cash and cash equivalents at beginning of period | | | 1,041 | | | | 1,593 | |
Cash and cash equivalents at end of period | | $ | 515 | | | $ | 505 | |
| | | | | | | | |
Supplemental cash flow information: | | | | | | | | |
Cash paid for interest | | $ | 41 | | | $ | 57 | |
Cash paid for income taxes | | | 171 | | | | 83 | |
As of September 30, 2022 and 2021, the amount of capital expenditures in accounts payable was $27 million and $52 million, respectively. For the nine months ended September 30, 2021, the amount of cash paid for taxes in connection with the earnout provision achieved under the terms of the sales agreement of the India-based do-it-yourself (“DIY”) business was $3 million. See “Note 4. Discontinued Operations and Business Dispositions— Sale of India-Based Do-It-Yourself Consumer Adhesives Business.”
See accompanying notes to condensed consolidated financial statements.
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In Millions, Except Unit Amounts)
| | September 30, | | | December 31, | |
| | 2022 | | | 2021 | |
ASSETS | | | | | | | | |
Current assets: | | | | | | | | |
Cash and cash equivalents(a) | | $ | 515 | | | $ | 1,039 | |
Accounts and notes receivable (net of allowance for doubtful accounts of $11 and $12, respectively), ($348 and $324 pledged as collateral, respectively)(a) | | | 981 | | | | 988 | |
Accounts receivable from affiliates | | | 1,035 | | | | 269 | |
Inventories(a) | | | 1,079 | | | | 1,038 | |
Receivable associated with the Albemarle Settlement | | | — | | | | 333 | |
Other current assets | | | 115 | | | | 153 | |
Current assets held for sale | | | 483 | | | | 346 | |
Total current assets | | | 4,208 | | | | 4,166 | |
Property, plant and equipment, net(a) | | | 2,288 | | | | 2,443 | |
Investment in unconsolidated affiliates | | | 430 | | | | 470 | |
Intangible assets, net | | | 433 | | | | 469 | |
Goodwill | | | 636 | | | | 650 | |
Deferred income taxes | | | 167 | | | | 180 | |
Operating lease right-of-use assets | | | 359 | | | | 381 | |
Other noncurrent assets(a) | | | 623 | | | | 690 | |
Noncurrent assets held for sale | | | — | | | | 182 | |
Total assets | | $ | 9,144 | | | $ | 9,631 | |
| | | | | | | | |
LIABILITIES AND EQUITY | | | | | | | | |
Current liabilities: | | | | | | | | |
Accounts payable(a) | | $ | 865 | | | $ | 1,051 | |
Accounts payable to affiliates | | | 40 | | | | 62 | |
Accrued liabilities(a) | | | 386 | | | | 704 | |
Current portion of debt(a) | | | 12 | | | | 12 | |
Current operating lease liabilities(a) | | | 50 | | | | 49 | |
Current liabilities held for sale | | | 242 | | | | 163 | |
Total current liabilities | | | 1,595 | | | | 2,041 | |
Long-term debt(a) | | | 1,476 | | | | 1,538 | |
Deferred income taxes | | | 251 | | | | 163 | |
Noncurrent operating lease liabilities(a) | | | 326 | | | | 346 | |
Other noncurrent liabilities(a) | | | 494 | | | | 573 | |
Noncurrent liabilities held for sale | | | — | | | | 151 | |
Total liabilities | | | 4,142 | | | | 4,812 | |
Commitments and contingencies (Notes 15 and 16) | | | | | | | | |
Equity | | | | | | | | |
Huntsman International LLC members’ equity: | | | | | | | | |
Members’ equity, 2,728 units issued and outstanding | | | 3,756 | | | | 3,732 | |
Retained earnings | | | 2,518 | | | | 2,093 | |
Accumulated other comprehensive loss | | | (1,482 | ) | | | (1,187 | ) |
Total Huntsman International LLC members’ equity | | | 4,792 | | | | 4,638 | |
Noncontrolling interests in subsidiaries | | | 210 | | | | 181 | |
Total equity | | | 5,002 | | | | 4,819 | |
Total liabilities and equity | | $ | 9,144 | | | $ | 9,631 | |
(a) |
At September 30, 2022 and December 31, 2021, respectively, $22 and $1 of cash and cash equivalents, $4 and $12 of accounts and notes receivable (net), $60 and $64 of inventories, $161 each of property, plant and equipment (net), $29 and $23 of other noncurrent assets, $126 and $146 of accounts payable, $11 and $13 of accrued liabilities, $10 each of current portion of debt, $10 and $6 of current operating lease liabilities, $28 and $35 of long-term debt, $21 and $20 of noncurrent operating lease liabilities and $45 and $46 of other noncurrent liabilities from consolidated variable interest entities are included in the respective balance sheet captions above. See “Note 6. Variable Interest Entities.” |
See accompanying notes to condensed consolidated financial statements.
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Millions)
|
|
Three months |
|
|
Nine months |
|
|
|
ended |
|
|
ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales, services and fees, net |
|
$ |
1,946 |
|
|
$ |
2,042 |
|
|
$ |
6,189 |
|
|
$ |
5,418 |
|
Related party sales |
|
|
65 |
|
|
|
55 |
|
|
|
184 |
|
|
|
140 |
|
Total revenues |
|
|
2,011 |
|
|
|
2,097 |
|
|
|
6,373 |
|
|
|
5,558 |
|
Cost of goods sold |
|
|
1,662 |
|
|
|
1,660 |
|
|
|
5,017 |
|
|
|
4,397 |
|
Gross profit |
|
|
349 |
|
|
|
437 |
|
|
|
1,356 |
|
|
|
1,161 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
166 |
|
|
|
175 |
|
|
|
528 |
|
|
|
530 |
|
Research and development |
|
|
31 |
|
|
|
35 |
|
|
|
97 |
|
|
|
102 |
|
Restructuring, impairment and plant closing costs (credits) |
|
|
12 |
|
|
|
(1 |
) |
|
|
36 |
|
|
|
34 |
|
Gain on sale of India-based DIY business |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(28 |
) |
Other operating expense (income), net |
|
|
3 |
|
|
|
(3 |
) |
|
|
(8 |
) |
|
|
(13 |
) |
Total operating expenses |
|
|
212 |
|
|
|
206 |
|
|
|
653 |
|
|
|
625 |
|
Operating income |
|
|
137 |
|
|
|
231 |
|
|
|
703 |
|
|
|
536 |
|
Interest expense, net |
|
|
(16 |
) |
|
|
(15 |
) |
|
|
(46 |
) |
|
|
(52 |
) |
Equity in income of investment in unconsolidated affiliates |
|
|
21 |
|
|
|
34 |
|
|
|
55 |
|
|
|
118 |
|
Fair value adjustments to Venator investment, net |
|
|
(7 |
) |
|
|
(3 |
) |
|
|
(9 |
) |
|
|
(28 |
) |
Loss on early extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(27 |
) |
Other income, net |
|
|
10 |
|
|
|
7 |
|
|
|
23 |
|
|
|
19 |
|
Income from continuing operations before income taxes |
|
|
145 |
|
|
|
254 |
|
|
|
726 |
|
|
|
566 |
|
Income tax expense |
|
|
(30 |
) |
|
|
(35 |
) |
|
|
(156 |
) |
|
|
(102 |
) |
Income from continuing operations |
|
|
115 |
|
|
|
219 |
|
|
|
570 |
|
|
|
464 |
|
(Loss) income from discontinued operations, net of tax |
|
|
(1 |
) |
|
|
6 |
|
|
|
30 |
|
|
|
36 |
|
Net income |
|
|
114 |
|
|
|
225 |
|
|
|
600 |
|
|
|
500 |
|
Net income attributable to noncontrolling interests |
|
|
(15 |
) |
|
|
(16 |
) |
|
|
(46 |
) |
|
|
(49 |
) |
Net income attributable to Huntsman International LLC |
|
$ |
99 |
|
|
$ |
209 |
|
|
$ |
554 |
|
|
$ |
451 |
|
See accompanying notes to condensed consolidated financial statements.
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(In Millions)
|
|
Three months |
|
|
Nine months |
|
|
|
ended |
|
|
ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net income |
|
$ |
114 |
|
|
$ |
225 |
|
|
$ |
600 |
|
|
$ |
500 |
|
Other comprehensive (loss) income, net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translations adjustment |
|
|
(204 |
) |
|
|
(36 |
) |
|
|
(339 |
) |
|
|
(42 |
) |
Pension and other postretirement benefits adjustments |
|
|
10 |
|
|
|
17 |
|
|
|
28 |
|
|
|
53 |
|
Other, net |
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
Other comprehensive (loss) income, net of tax |
|
|
(194 |
) |
|
|
(19 |
) |
|
|
(312 |
) |
|
|
11 |
|
Comprehensive (loss) income |
|
|
(80 |
) |
|
|
206 |
|
|
|
288 |
|
|
|
511 |
|
Comprehensive loss (income) attributable to noncontrolling interests |
|
|
(6 |
) |
|
|
(17 |
) |
|
|
(29 |
) |
|
|
(51 |
) |
Comprehensive (loss) income attributable to Huntsman International LLC |
|
$ |
(86 |
) |
|
$ |
189 |
|
|
$ |
259 |
|
|
$ |
460 |
|
See accompanying notes to condensed consolidated financial statements.
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(In Millions, Except Unit Amounts)
| | Huntsman International LLC Members | | | | | | | | | |
| | Members' | | | | | | | Accumulated other | | | Noncontrolling | | | | | |
| | equity | | | | | | | comprehensive | | | interests in | | | Total | |
| | Units | | | Amount | | | Retained earnings | | | loss | | | subsidiaries | | | equity | |
Balance, January 1, 2022 | | | 2,728 | | | $ | 3,732 | | | $ | 2,093 | | | $ | (1,187 | ) | | $ | 181 | | | $ | 4,819 | |
Net income | | | — | | | | — | | | | 226 | | | | — | | | | 17 | | | | 243 | |
Dividends paid to parent | | | — | | | | — | | | | (45 | ) | | | — | | | | — | | | | (45 | ) |
Other comprehensive loss | | | — | | | | — | | | | — | | | | (11 | ) | | | (1 | ) | | | (12 | ) |
Contribution from parent | | | — | | | | 9 | | | | — | | | | — | | | | — | | | | 9 | |
Balance, March 31, 2022 | | | 2,728 | | | | 3,741 | | | | 2,274 | | | | (1,198 | ) | | | 197 | | | | 5,014 | |
Net income | | | — | | | | — | | | | 229 | | | | — | | | | 14 | | | | 243 | |
Dividends paid to parent | | | — | | | | — | | | | (42 | ) | | | — | | | | — | | | | (42 | ) |
Other comprehensive loss | | | — | | | | — | | | | — | | | | (99 | ) | | | (7 | ) | | | (106 | ) |
Contribution from parent | | | — | | | | 10 | | | | — | | | | — | | | | — | | | | 10 | |
Balance, June 30, 2022 | | | 2,728 | | | | 3,751 | | | | 2,461 | | | | (1,297 | ) | | | 204 | | | | 5,119 | |
Net income | | | — | | | | — | | | | 99 | | | | — | | | | 15 | | | | 114 | |
Dividends paid to parent | | | — | | | | — | | | | (42 | ) | | | — | | | | — | | | | (42 | ) |
Other comprehensive loss | | | — | | | | — | | | | — | | | | (185 | ) | | | (9 | ) | | | (194 | ) |
Contribution from parent | | | — | | | | 5 | | | | — | | | |