hun_Current_Folio_10Q

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 March 31, 2018

 

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


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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post 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 or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b‑2 of the Exchange Act. (Check one):

 

 

 

 

 

 

Huntsman Corporation

Large accelerated filer ☒

Accelerated filer ☐

Non‑accelerated filer ☐
(Do not check if a
smaller reporting company)

Smaller reporting company ☐

Emerging growth company ☐

Huntsman International LLC

Large accelerated filer ☐

Accelerated filer ☐

Non‑accelerated filer ☒
(Do not check if a
smaller reporting company)

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 7(a)(2)(B) of the Securities 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 April 19, 2018, 239,180,054 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.

 

 

 

 

 


 

Table of Contents

HUNTSMAN CORPORATION AND SUBSIDIARIES

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES

QUARTERLY REPORT ON FORM 10‑Q FOR THE QUARTERLY PERIOD

ENDED MARCH 31, 2018

 

TABLE OF CONTENTS

 

 

    

 

 

Page

PART I 

 

FINANCIAL INFORMATION

 

4

ITEM 1. 

 

Condensed Consolidated Financial Statements (Unaudited)

 

4

 

 

Huntsman Corporation and Subsidiaries:

 

 

 

 

Condensed Consolidated Balance Sheets

 

4

 

 

Condensed Consolidated Statements of Operations

 

5

 

 

Condensed Consolidated Statements of Comprehensive Income

 

6

 

 

Condensed Consolidated Statements of Equity

 

7

 

 

Condensed Consolidated Statements of Cash Flows

 

8

 

 

Huntsman International LLC and Subsidiaries:

 

 

 

 

Condensed Consolidated Balance Sheets

 

10

 

 

Condensed Consolidated Statements of Operations

 

11

 

 

Condensed Consolidated Statements of Comprehensive Income 

 

12

 

 

Condensed Consolidated Statements of Equity

 

13

 

 

Condensed Consolidated Statements of Cash Flows

 

14

 

 

Huntsman Corporation and Subsidiaries and Huntsman International LLC and Subsidiaries:

 

 

 

 

Notes to Condensed Consolidated Financial Statements

 

16

ITEM 2. 

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

49

ITEM 3. 

 

Quantitative and Qualitative Disclosures About Market Risk

 

63

ITEM 4. 

 

Controls and Procedures

 

64

PART II 

 

OTHER INFORMATION

 

65

ITEM 1. 

 

Legal Proceedings

 

65

ITEM 1A. 

 

Risk Factors

 

65

ITEM 2. 

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

65

ITEM 6. 

 

Exhibits

 

65

 

 

2


 

Table of Contents

HUNTSMAN CORPORATION AND SUBSIDIARIES

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES

QUARTERLY REPORT ON FORM 10‑Q FOR THE QUARTERLY PERIOD

ENDED MARCH 31, 2018

 

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; 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 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 result or 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, 2017.

3


 

Table of Contents

PART I. FINANCIAL INFORMATION

 

ITEM 1.  CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

HUNTSMAN CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Millions, Except Share and Per Share Amounts)

 

 

 

 

 

 

 

 

 

 

March 31, 

 

December 31, 

 

    

2018

    

2017

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents(a)

 

$

444

 

$

470

Restricted cash(a)

 

 

 9

 

 

11

Accounts and notes receivable (net of allowance for doubtful accounts of $27 and $25, respectively), ($415 and $334 pledged as collateral, respectively)(a)

 

 

1,374

 

 

1,256

Accounts receivable from affiliates

 

 

33

 

 

27

Inventories(a)

 

 

1,203

 

 

1,073

Prepaid expenses

 

 

69

 

 

60

Other current assets(a)

 

 

193

 

 

202

Current assets held for sale

 

 

3,060

 

 

2,880

Total current assets 

 

 

6,385

 

 

5,979

Property, plant and equipment, net(a)

 

 

3,117

 

 

3,098

Investment in unconsolidated affiliates

 

 

284

 

 

266

Intangible assets, net(a)

 

 

55

 

 

56

Goodwill

 

 

141

 

 

140

Deferred income taxes

 

 

212

 

 

208

Other noncurrent assets(a)

 

 

509

 

 

497

Total assets 

 

$

10,703

 

$

10,244

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable(a)

 

$

961

 

$

946

Accounts payable to affiliates

 

 

32

 

 

18

Accrued liabilities(a)

 

 

533

 

 

569

Current portion of debt(a)

 

 

36

 

 

40

Current liabilities held for sale

 

 

1,721

 

 

1,692

Total current liabilities 

 

 

3,283

 

 

3,265

Long-term debt(a)

 

 

2,298

 

 

2,258

Deferred income taxes

 

 

269

 

 

264

Other noncurrent liabilities(a)

 

 

1,084

 

 

1,086

Total liabilities 

 

 

6,934

 

 

6,873

Commitments and contingencies (Notes 14 and 15)

 

 

 

 

 

 

Equity

 

 

 

 

 

 

Huntsman Corporation stockholders’ equity:

 

 

 

 

 

 

Common stock $0.01 par value, 1,200,000,000 shares authorized, 254,124,395 and 252,759,715 shares issued and 239,831,871 and 240,213,606 shares outstanding, respectively

 

 

 3

 

 

 3

Additional paid-in capital

 

 

3,939

 

 

3,889

Treasury stock, 14,292,523 and 12,607,223 shares, respectively

 

 

(201)

 

 

(150)

Unearned stock-based compensation

 

 

(26)

 

 

(15)

Retained earnings

 

 

393

 

 

161

Accumulated other comprehensive loss

 

 

(1,198)

 

 

(1,268)

Total Huntsman Corporation stockholders’ equity 

 

 

2,910

 

 

2,620

Noncontrolling interests in subsidiaries

 

 

859

 

 

751

Total equity 

 

 

3,769

 

 

3,371

Total liabilities and equity 

 

$

10,703

 

$

10,244


(a)

At March 31, 2018 and December 31, 2017, respectively, $13 and $15 of cash and cash equivalents, $9 and $11 of restricted cash, $38 and $35 of accounts and notes receivable (net), $52 and $46 of inventories, $7 each of other current assets, $265 and $283 of property, plant and equipment (net), $10 each of intangible assets (net), $57 and $43 of other noncurrent assets, $91 and $109 of accounts payable, $32 each of accrued liabilities, $22 and $21 of current portion of debt, $83 and $86 of long‑term debt, and $99 and $98 of other noncurrent liabilities from consolidated variable interest entities are included in the respective balance sheet captions above. See “Note 5. Variable Interest Entities.”

 

See accompanying notes to condensed consolidated financial statements.

 

4


 

Table of Contents

HUNTSMAN CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In Millions, Except Per Share Amounts)

 

 

 

 

 

 

 

 

 

Three months

 

    

ended

 

 

March 31, 

 

 

2018

 

2017

Revenues:

 

 

 

 

 

 

Trade sales, services and fees, net

 

$

2,255

 

$

1,891

Related party sales

 

 

40

 

 

41

Total revenues 

 

 

2,295

 

 

1,932

Cost of goods sold 

 

 

1,755

 

 

1,542

Gross profit 

 

 

540

 

 

390

Operating expenses:

 

 

 

 

 

 

Selling, general and administrative

 

 

192

 

 

192

Research and development

 

 

38

 

 

34

Restructuring, impairment and plant closing costs

 

 

 2

 

 

 9

Other operating expense (income), net

 

 

12

 

 

(7)

Total operating expenses

 

 

244

 

 

228

Operating income   

 

 

296

 

 

162

Interest expense

 

 

(27)

 

 

(48)

Equity in income of investment in unconsolidated affiliates

 

 

13

 

 

 —

Other income, net

 

 

 7

 

 

 4

Income from continuing operations before income taxes 

 

 

289

 

 

118

Income tax expense

 

 

(53)

 

 

(19)

Income from continuing operations 

 

 

236

 

 

99

Income (loss) from discontinued operations, net of tax

 

 

114

 

 

(7)

Net income

 

 

350

 

 

92

Net income attributable to noncontrolling interests

 

 

(76)

 

 

(16)

Net income attributable to Huntsman Corporation 

 

$

274

 

$

76

 

 

 

 

 

 

 

Basic income (loss) per share:

 

 

 

 

 

 

Income from continuing operations attributable to Huntsman Corporation common stockholders

 

$

0.66

 

$

0.35

Income (loss) from discontinued operations attributable to Huntsman Corporation common stockholders, net of tax

 

 

0.48

 

 

(0.03)

Net income attributable to Huntsman Corporation common stockholders

 

$

1.14

 

$

0.32

Weighted average shares

 

 

240.8

 

 

237.4

 

 

 

 

 

 

 

Diluted income (loss) per share:

 

 

 

 

 

 

Income from continuing operations attributable to Huntsman Corporation common stockholders

 

$

0.65

 

$

0.34

Income (loss) from discontinued operations attributable to Huntsman Corporation common stockholders, net of tax

 

 

0.46

 

 

(0.03)

Net income attributable to Huntsman Corporation common stockholders

 

$

1.11

 

$

0.31

Weighted average shares

 

 

245.9

 

 

242.5

 

 

 

 

 

 

 

Amounts attributable to Huntsman Corporation common stockholders:

 

 

 

 

 

 

Income from continuing operations

 

$

160

 

$

83

Income (loss) from discontinued operations, net of tax

 

 

114

 

 

(7)

Net income

 

$

274

 

$

76

Dividends per share 

 

$

0.1625

 

$

0.125

 

See accompanying notes to condensed consolidated financial statements.

 

5


 

Table of Contents

HUNTSMAN CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Millions)

 

 

 

 

 

 

 

 

 

 

Three months

 

 

ended

 

 

March 31, 

 

    

2018

    

2017

Net income

 

$

350

 

$

92

Other comprehensive income, net of tax: 

 

 

 

 

 

 

Foreign currency translations adjustments

 

 

87

 

 

77

Pension and other postretirement benefits adjustments

 

 

25

 

 

18

Other, net

 

 

(9)

 

 

 2

Other comprehensive income, net of tax

 

 

103

 

 

97

Comprehensive income

 

 

453

 

 

189

Comprehensive income attributable to noncontrolling interests

 

 

(83)

 

 

(18)

Comprehensive income attributable to Huntsman Corporation 

 

$

370

 

$

171

 

See accompanying notes to condensed consolidated financial statements.

 

 

6


 

Table of Contents

HUNTSMAN CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(In Millions, Except Share Amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Huntsman Corporation Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retained

 

Accumulated

 

 

 

 

 

 

 

 

Shares

 

 

 

 

Additional

 

 

 

 

Unearned

 

earnings

 

other

 

Noncontrolling

 

 

 

 

 

Common

 

Common

 

paid-in

 

Treasury

 

stock-based

 

(accumulated

 

comprehensive

 

interests in

 

Total

 

    

stock

    

stock

    

capital

    

stock

    

compensation

    

deficit)

    

loss

    

subsidiaries

    

equity

Balance, January 1, 2018

 

240,213,606

    

$

 3

    

$

3,889

    

$

(150)

    

$

(15)

    

$

161

    

$

(1,268)

    

$

751

    

$

3,371

Cumulative effect of changes in fair value of equity investments

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

10

 

 

(10)

 

 

 —

 

 

 —

Revised balance January 1, 2018

 

240,213,606

 

 

 3

 

 

3,889

 

 

(150)

 

 

(15)

 

 

171

 

 

(1,278)

 

 

751

 

 

3,371

Net income

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

274

 

 

 —

 

 

76

 

 

350

Other comprehensive income

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

80

 

 

23

 

 

103

Issuance of nonvested stock awards

 

 —

 

 

 —

 

 

14

 

 

 —

 

 

(14)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Vesting of stock awards

 

985,493

 

 

 —

 

 

11

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

11

Recognition of stock-based compensation

 

 —

 

 

 —

 

 

 2

 

 

 —

 

 

 3

 

 

 —

 

 

 —

 

 

 —

 

 

 5

Repurchase and cancellation of stock awards

 

(253,345)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(11)

 

 

 —

 

 

 —

 

 

(11)

Dividends paid to noncontrolling interests

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(18)

 

 

(18)

Stock options exercised

 

571,417

 

 

 —

 

 

 7

 

 

 —

 

 

 —

 

 

(2)

 

 

 —

 

 

 —

 

 

 5

Treasury stock repurchased

 

(1,685,300)

 

 

 —

 

 

 —

 

 

(51)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(51)

Disposition of a portion of P&A Business

 

 —

 

 

 —

 

 

18

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

18

Costs of the secondary offering of P&A Business

 

 —

 

 

 —

 

 

(2)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(2)

Noncontrolling interest from partial disposal of P&A Business

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

27

 

 

27

Dividends declared on common stock

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(39)

 

 

 —

 

 

 —

 

 

(39)

Balance, March 31, 2018

 

239,831,871

 

$

 3

 

$

3,939

 

$

(201)

 

$

(26)

 

$

393

 

$

(1,198)

 

$

859

 

$

3,769

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2017

 

236,370,347

 

$

 3

 

$

3,447

 

$

(150)

 

$

(17)

 

$

(325)

 

$

(1,671)

 

$

180

 

$

1,467

Net income

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

76

 

 

 —

 

 

16

 

 

92

Other comprehensive income

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

95

 

 

 2

 

 

97

Issuance of nonvested stock awards

 

 —

 

 

 —

 

 

17

 

 

 —

 

 

(17)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Vesting of stock awards

 

1,158,884

 

 

 —

 

 

 8

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 8

Recognition of stock-based compensation

 

 —

 

 

 —

 

 

 2

 

 

 —

 

 

 5

 

 

 —

 

 

 —

 

 

 —

 

 

 7

Repurchase and cancellation of stock awards

 

(343,712)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(8)

 

 

 —

 

 

 —

 

 

(8)

Contribution from noncontrolling interests

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 2

 

 

 2

Dividends paid to noncontrolling interests

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(3)

 

 

(3)

Stock options exercised

 

967,397

 

 

 —

 

 

30

 

 

 —

 

 

 —

 

 

(13)

 

 

 —

 

 

 —

 

 

17

Dividends declared on common stock

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(30)

 

 

 —

 

 

 —

 

 

(30)

Balance, March 31, 2017

 

238,152,916

 

$

 3

 

$

3,504

 

$

(150)

 

$

(29)

 

$

(300)

 

$

(1,576)

 

$

197

 

$

1,649

 

See accompanying notes to condensed consolidated financial statements.

 

 

7


 

Table of Contents

HUNTSMAN CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Millions)

 

 

 

 

 

 

 

 

 

 

Three months

 

 

ended

 

 

March 31, 

 

    

2018

    

2017

Operating Activities:

 

 

 

 

 

 

Net income

 

$

350

 

$

92

Less: (Income) loss from discontinued operations, net of tax

 

 

(114)

 

 

 7

Income from continuing operations

 

 

236

 

 

99

Adjustments to reconcile income from continuing operations to net cash provided by operating activities from continuing operations:

 

 

 

 

 

 

Equity in income of investment in unconsolidated affiliates

 

 

(13)

 

 

 —

Depreciation and amortization

 

 

82

 

 

76

Loss on disposal of businesses/assets, net

 

 

 2

 

 

 —

Noncash interest expense

 

 

 —

 

 

 4

Noncash restructuring and impairment charges

 

 

 2

 

 

 —

Deferred income taxes

 

 

 2

 

 

 8

Noncash loss (gain) on foreign currency transactions

 

 

 5

 

 

(4)

Stock-based compensation

 

 

 8

 

 

 9

Other, net

 

 

 —

 

 

(12)

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts and notes receivable

 

 

(104)

 

 

(55)

Inventories

 

 

(105)

 

 

(109)

Prepaid expenses

 

 

(8)

 

 

(2)

Other current assets

 

 

15

 

 

(14)

Other noncurrent assets

 

 

 1

 

 

(7)

Accounts payable

 

 

36

 

 

83

Accrued liabilities

 

 

(42)

 

 

(16)

Other noncurrent liabilities

 

 

(6)

 

 

10

Net cash provided by operating activities from continuing operations

 

 

111

 

 

70

Net cash provided by operating activities from discontinued operations

 

 

52

 

 

23

Net cash provided by operating activities

 

 

163

 

 

93

 

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

 

Capital expenditures

 

 

(55)

 

 

(51)

Acquisition of a business, net of cash acquired

 

 

(14)

 

 

 —

Other, net

 

 

 —

 

 

 4

Net cash used in investing activities from continuing operations

 

 

(69)

 

 

(47)

Net cash (used in) provided by investing activities from discontinued operations

 

 

(67)

 

 

24

Net cash used in investing activities

 

 

(136)

 

 

(23)

 

(Continued)

8


 

Table of Contents

HUNTSMAN CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

(In Millions)

 

 

 

 

 

 

 

 

 

 

Three months

 

 

ended

 

 

March 31, 

 

    

2018

    

2017

Financing Activities:

 

 

 

 

 

 

Net repayments on overdraft facilities

 

$

(1)

 

$

 —

Repayments of short-term debt

 

 

(2)

 

 

(6)

Borrowings on short-term debt

 

 

 2

 

 

 2

Repayments of long-term debt

 

 

(4)

 

 

(7)

Proceeds from issuance of long-term debt

 

 

 —

 

 

 8

Repayments of notes payable

 

 

(9)

 

 

(5)

Dividends paid to noncontrolling interests

 

 

(18)

 

 

(3)

Contribution from noncontrolling interests

 

 

 —

 

 

 2

Dividends paid to common stockholders

 

 

(39)

 

 

(30)

Repurchase and cancellation of stock awards

 

 

(11)

 

 

(8)

Proceeds from issuance of common stock

 

 

 5

 

 

17

Repurchase of common stock

 

 

(51)

 

 

 —

Proceeds from the secondary offering of P&A Business

 

 

44

 

 

 —

Cash paid for expenses of the secondary offering of P&A Business

 

 

(2)

 

 

 —

Other, net

 

 

 —

 

 

(1)

Net cash used in financing activities

 

 

(86)

 

 

(31)

Effect of exchange rate changes on cash

 

 

16

 

 

 5

(Decrease) increase in cash, cash equivalents and restricted cash

 

 

(43)

 

 

44

Cash, cash equivalents and restricted cash from continuing operations at beginning of period

 

 

481

 

 

396

Cash, cash equivalents and restricted cash from discontinued operations at beginning of period

 

 

238

 

 

29

Cash, cash equivalents and restricted cash at end of period

 

$

676

 

$

469

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

 

Cash paid for interest

 

$

31

 

$

36

Cash paid for income taxes 

 

 

41

 

 

 8

 

As of March 31, 2018 and 2017, the amount of capital expenditures in accounts payable was $32 million and $47 million, respectively. In addition, as of March 31, 2018, the amount of cash interest and cash income taxes included in our supplemental cash flow information related to cash paid for interest and cash paid for income taxes that was paid by our P&A Business was $19 million and $15 million, respectively.

 

See accompanying notes to condensed consolidated financial statements.

9


 

Table of Contents

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Millions)

 

 

 

 

 

 

 

 

 

 

March 31, 

 

December 31, 

 

    

2018

    

2017

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents(a)

 

$

444

 

$

468

Restricted cash(a)

 

 

 9

 

 

11

Accounts and notes receivable (net of allowance for doubtful accounts of $27 and $25, respectively), ($415 and $334 pledged as collateral, respectively)(a)

 

 

1,374

 

 

1,255

Accounts receivable from affiliates

 

 

393

 

 

373

Inventories(a)

 

 

1,203

 

 

1,073

Prepaid expenses

 

 

68

 

 

59

Other current assets(a)

 

 

196

 

 

204

Current assets held for sale

 

 

3,060

 

 

2,880

Total current assets 

 

 

6,747

 

 

6,323

Property, plant and equipment, net(a)

 

 

3,115

 

 

3,095

Investment in unconsolidated affiliates

 

 

284

 

 

266

Intangible assets, net(a)

 

 

55

 

 

56

Goodwill

 

 

141

 

 

140

Deferred income taxes

 

 

212

 

 

208

Other noncurrent assets(a)

 

 

511

 

 

497

Total assets 

 

$

11,065

 

$

10,585

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable(a)

 

$

961

 

$

946

Accounts payable to affiliates

 

 

89

 

 

70

Accrued liabilities(a)

 

 

531

 

 

566

Notes payable to affiliates

 

 

100

 

 

100

Current portion of debt(a)

 

 

36

 

 

40

Current liabilities held for sale

 

 

1,721

 

 

1,692

Total current liabilities 

 

 

3,438

 

 

3,414

Long-term debt(a)

 

 

2,298

 

 

2,258

Notes payable to affiliates

 

 

702

 

 

742

Deferred income taxes

 

 

271

 

 

265

Other noncurrent liabilities(a)

 

 

1,077

 

 

1,072

Total liabilities 

 

 

7,786

 

 

7,751

Commitments and contingencies (Notes 14 and 15)

 

 

 

 

 

 

Equity

 

 

 

 

 

 

Huntsman International LLC members’ equity:

 

 

 

 

 

 

Members’ equity, 2,728 units issued and outstanding

 

 

3,639

 

 

3,616

Accumulated deficit

 

 

(28)

 

 

(270)

Accumulated other comprehensive loss

 

 

(1,191)

 

 

(1,263)

Total Huntsman International LLC members’ equity 

 

 

2,420

 

 

2,083

Noncontrolling interests in subsidiaries

 

 

859

 

 

751

Total equity 

 

 

3,279

 

 

2,834

Total liabilities and equity 

 

$

11,065

 

$

10,585


(a)

At March 31, 2018 and December 31, 2017, respectively, $13 and $15 of cash and cash equivalents, $9 and $11 of restricted cash, $38 and $35 of accounts and notes receivable (net), $52 and $46 of inventories, $7 each of other current assets, $265 and $283 of property, plant and equipment (net), $10 each of intangible assets (net), $57 and $43 of other noncurrent assets, $91 and $109 of accounts payable, $32 each of accrued liabilities, $22 and $21 of current portion of debt, $83 and $86 of long‑term debt, and $99 and $98 of other noncurrent liabilities from consolidated variable interest entities are included in the respective balance sheet captions above. See “Note 5. Variable Interest Entities.”

 

See accompanying notes to condensed consolidated financial statements.

10