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 June  30, 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 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 ☐
(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 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 July 23, 2018,  238,867,443 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 JUNE 30, 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

 

47

ITEM 3. 

 

Quantitative and Qualitative Disclosures About Market Risk

 

65

ITEM 4. 

 

Controls and Procedures

 

66

PART II 

 

OTHER INFORMATION

 

67

ITEM 1. 

 

Legal Proceedings

 

67

ITEM 1A. 

 

Risk Factors

 

67

ITEM 2. 

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

68

ITEM 6. 

 

Exhibits

 

68

 

 

2


 

Table of Contents

HUNTSMAN CORPORATION AND SUBSIDIARIES

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES

QUARTERLY REPORT ON FORM 10‑Q FOR THE QUARTERLY PERIOD

ENDED JUNE  30, 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 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, 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)

 

 

 

 

 

 

 

 

 

 

June 30, 

 

December 31, 

 

    

2018

    

2017

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents(a)

 

$

408

 

$

470

Restricted cash(a)

 

 

 1

 

 

11

Accounts and notes receivable (net of allowance for doubtful accounts of $25 for both), ($391 and $334 pledged as collateral, respectively)(a)

 

 

1,355

 

 

1,256

Accounts receivable from affiliates

 

 

22

 

 

27

Inventories(a)

 

 

1,178

 

 

1,073

Prepaid expenses

 

 

59

 

 

60

Other current assets(a)

 

 

192

 

 

202

Current assets held for sale

 

 

3,158

 

 

2,880

Total current assets 

 

 

6,373

 

 

5,979

Property, plant and equipment, net(a)

 

 

3,014

 

 

3,098

Investment in unconsolidated affiliates

 

 

296

 

 

266

Intangible assets, net(a)

 

 

118

 

 

56

Goodwill

 

 

393

 

 

140

Deferred income taxes

 

 

299

 

 

208

Other noncurrent assets(a)

 

 

561

 

 

497

Total assets 

 

$

11,054

 

$

10,244

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable(a)

 

$

962

 

$

946

Accounts payable to affiliates

 

 

31

 

 

18

Accrued liabilities(a)

 

 

469

 

 

569

Current portion of debt(a)

 

 

255

 

 

40

Current liabilities held for sale

 

 

1,578

 

 

1,692

Total current liabilities 

 

 

3,295

 

 

3,265

Long-term debt(a)

 

 

2,311

 

 

2,258

Deferred income taxes

 

 

293

 

 

264

Other noncurrent liabilities(a)

 

 

1,085

 

 

1,086

Total liabilities 

 

 

6,984

 

 

6,873

Commitments and contingencies (Notes 15 and 16)

 

 

 

 

 

 

Equity

 

 

 

 

 

 

Huntsman Corporation stockholders’ equity:

 

 

 

 

 

 

Common stock $0.01 par value, 1,200,000,000 shares authorized, 255,764,896 and 252,759,715 shares issued and 238,525,273 and 240,213,606 shares outstanding, respectively

 

 

 3

 

 

 3

Additional paid-in capital

 

 

3,977

 

 

3,889

Treasury stock, 17,239,625 and 12,607,223 shares, respectively

 

 

(288)

 

 

(150)

Unearned stock-based compensation

 

 

(22)

 

 

(15)

Retained earnings

 

 

724

 

 

161

Accumulated other comprehensive loss

 

 

(1,330)

 

 

(1,268)

Total Huntsman Corporation stockholders’ equity 

 

 

3,064

 

 

2,620

Noncontrolling interests in subsidiaries

 

 

1,006

 

 

751

Total equity 

 

 

4,070

 

 

3,371

Total liabilities and equity 

 

$

11,054

 

$

10,244


(a)

At June  30, 2018 and December 31, 2017, respectively, $9 and $15 of cash and cash equivalents, nil and $11 of restricted cash, $35 each of accounts and notes receivable (net), $55 and $46 of inventories, $6 and $7 of other current assets, $258 and $283 of property, plant and equipment (net), $10 each of intangible assets (net), $55 and $43  of other noncurrent assets, $94  and $109 of accounts payable, $29 and $32 of accrued liabilities, $23 and $21 of current portion of debt, $74 and $86 of long‑term debt, and $98 each 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.

 

4


 

Table of Contents

HUNTSMAN CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In Millions, Except Per Share Amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months

 

Six months

 

    

ended

 

ended

 

 

June 30, 

 

June 30, 

 

 

2018

 

2017

 

2018

    

2017

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Trade sales, services and fees, net

 

$

2,367

 

$

2,020

 

$

4,622

 

$

3,911

Related party sales

 

 

37

 

 

34

 

 

77

 

 

75

Total revenues 

 

 

2,404

 

 

2,054

 

 

4,699

 

 

3,986

Cost of goods sold 

 

 

1,849

 

 

1,618

 

 

3,604

 

 

3,160

Gross profit 

 

 

555

 

 

436

 

 

1,095

 

 

826

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

207

 

 

193

 

 

399

 

 

385

Research and development

 

 

38

 

 

34

 

 

76

 

 

68

Restructuring, impairment and plant closing costs

 

 

 1

 

 

 3

 

 

 3

 

 

12

Merger costs

 

 

 1

 

 

 6

 

 

 1

 

 

 6

Other operating expense (income), net

 

 

 9

 

 

(7)

 

 

21

 

 

(14)

Total operating expenses

 

 

256

 

 

229

 

 

500

 

 

457

Operating income   

 

 

299

 

 

207

 

 

595

 

 

369

Interest expense

 

 

(29)

 

 

(47)

 

 

(56)

 

 

(95)

Equity in income of investment in unconsolidated affiliates

 

 

18

 

 

 3

 

 

31

 

 

 3

Loss on early extinguishment of debt

 

 

(3)

 

 

(1)

 

 

(3)

 

 

(1)

Other income, net

 

 

 8

 

 

 —

 

 

15

 

 

 4

Income from continuing operations before income taxes 

 

 

293

 

 

162

 

 

582

 

 

280

Income tax expense

 

 

(4)

 

 

(24)

 

 

(57)

 

 

(43)

Income from continuing operations 

 

 

289

 

 

138

 

 

525

 

 

237

Income from discontinued operations, net of tax

 

 

334

 

 

45

 

 

448

 

 

38

Net income

 

 

623

 

 

183

 

 

973

 

 

275

Net income attributable to noncontrolling interests

 

 

(209)

 

 

(16)

 

 

(285)

 

 

(32)

Net income attributable to Huntsman Corporation 

 

$

414

 

$

167

 

$

688

 

$

243

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations attributable to Huntsman Corporation common stockholders

 

$

1.12

 

$

0.51

 

$

2.01

    

$

0.86

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

 

 

0.61

 

 

0.19

 

 

0.86

 

 

0.16

Net income attributable to Huntsman Corporation common stockholders

 

$

1.73

 

$

0.70

 

$

2.87

 

$

1.02

Weighted average shares

 

 

238.7

 

 

238.3

 

 

239.8

 

 

237.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations attributable to Huntsman Corporation common stockholders

 

$

1.11

 

$

0.50

 

$

1.98

 

$

0.84

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

 

 

0.60

 

 

0.19

 

 

0.84

 

 

0.16

Net income attributable to Huntsman Corporation common stockholders

 

$

1.71

 

$

0.69

 

$

2.82

 

$

1.00

Weighted average shares

 

 

242.7

 

 

243.7

 

 

244.2

 

 

243.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts attributable to Huntsman Corporation common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

268

 

$

122

 

$

483

 

$

205

Income from discontinued operations, net of tax

 

 

146

 

 

45

 

 

205

 

 

38

Net income

 

$

414

 

$

167

 

$

688

 

$

243

Dividends per share 

 

$

0.1625

 

$

0.125

 

$

0.325

 

$

0.25

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

 

 

Six months

 

 

ended

 

 

ended

 

 

June 30, 

 

 

June 30,

 

    

2018

    

2017

    

 

2018

    

2017

Net income

 

$

623

 

$

183

 

 

$

973

 

$

275

Other comprehensive (loss) income, net of tax: 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

(202)

 

 

58

 

 

 

(115)

 

 

135

Pension and other postretirement benefits adjustments

 

 

20

 

 

19

 

 

 

45

 

 

37

Other, net

 

 

 1

 

 

(4)

 

 

 

(8)

 

 

(2)

Other comprehensive (loss) income, net of tax

 

 

(181)

 

 

73

 

 

 

(78)

 

 

170

Comprehensive income

 

 

442

 

 

256

 

 

 

895

 

 

445

Comprehensive income attributable to noncontrolling interests

 

 

(171)

 

 

(21)

 

 

 

(254)

 

 

(39)

Comprehensive income attributable to Huntsman Corporation 

 

$

271

 

$

235

 

 

$

641

 

$

406

 

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

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

688

 

 

 —

 

 

285

 

 

973

Other comprehensive loss

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(52)

 

 

(26)

 

 

(78)

Issuance of nonvested stock awards

 

 —

 

 

 —

 

 

14

 

 

 —

 

 

(14)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Vesting of stock awards

 

1,109,813

 

 

 —

 

 

11

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

11

Recognition of stock-based compensation

 

 —

 

 

 —

 

 

 4

 

 

 —

 

 

 7

 

 

 —

 

 

 —

 

 

 —

 

 

11

Repurchase and cancellation of stock awards

 

(254,878)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(29)

 

 

 —

 

 

 —

 

 

(29)

Dividends paid to noncontrolling interests

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(31)

 

 

(31)

Stock options exercised

 

2,089,134

 

 

 —

 

 

43

 

 

 —

 

 

 —

 

 

(28)

 

 

 —

 

 

 —

 

 

15

Repurchase of common stock

 

(4,632,402)

 

 

 —

 

 

 —

 

 

(138)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(138)

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

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(78)

 

 

 —

 

 

 —

 

 

(78)

Balance, June 30, 2018

 

238,525,273

 

$

 3

 

$

3,977

 

$

(288)

 

$

(22)

 

$

724

 

$

(1,330)

 

$

1,006

 

$

4,070

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2017

 

236,370,347

 

$

 3

 

$

3,447

 

$

(150)

 

$

(17)

 

$

(325)

 

$

(1,671)

 

$

180

 

$

1,467

Net income

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

243

 

 

 —

 

 

32

 

 

275

Other comprehensive income

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

163

 

 

 7

 

 

170

Issuance of nonvested stock awards

 

 —

 

 

 —

 

 

17

 

 

 —

 

 

(17)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Vesting of stock awards

 

1,162,963

 

 

 —

 

 

 8

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 8

Recognition of stock-based compensation

 

 —

 

 

 —

 

 

 5

 

 

 —

 

 

 9

 

 

 —

 

 

 —

 

 

 —

 

 

14

Repurchase and cancellation of stock awards

 

(344,918)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(8)

 

 

 —

 

 

 —

 

 

(8)

Contribution from noncontrolling interests

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 2

 

 

 2

Dividends paid to noncontrolling interests

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(10)

 

 

(10)

Stock options exercised

 

1,238,862

 

 

 —

 

 

34

 

 

 —

 

 

 —

 

 

(14)

 

 

 —

 

 

 —

 

 

20

Dividends declared on common stock

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(60)

 

 

 —

 

 

 —

 

 

(60)

Balance, June 30, 2017

 

238,427,254

 

$

 3

 

$

3,511

 

$

(150)

 

$

(25)

 

$

(164)

 

$

(1,508)

 

$

211

 

$

1,878

 

See accompanying notes to condensed consolidated financial statements.

 

 

7


 

Table of Contents

HUNTSMAN CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Millions)

 

 

 

 

 

 

 

 

 

 

Six months

 

 

ended

 

 

June 30, 

 

    

2018

    

2017

Operating Activities:

 

 

 

 

 

 

Net income

 

$

973

 

$

275

Less: Income from discontinued operations, net of tax

 

 

(448)

 

 

(38)

Income from continuing operations

 

 

525

 

 

237

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

 

 

(31)

 

 

(3)

Depreciation and amortization

 

 

165

 

 

155

Loss (gain) on disposal of businesses/assets, net

 

 

 3

 

 

(6)

Loss on early extinguishment of debt

 

 

 3

 

 

 1

Noncash interest expense

 

 

 1

 

 

 6

Noncash restructuring and impairment charges

 

 

 2

 

 

 1

Deferred income taxes

 

 

(86)

 

 

16

Noncash loss (gain) on foreign currency transactions

 

 

 4

 

 

(7)

Stock-based compensation

 

 

15

 

 

17

Other, net

 

 

 3

 

 

 2

Changes in operating assets and liabilities, net of effects of acquisitions:

 

 

 

 

 

 

Accounts and notes receivable

 

 

(94)

 

 

(120)

Inventories

 

 

(107)

 

 

(137)

Prepaid expenses

 

 

(1)

 

 

 2

Other current assets

 

 

 7

 

 

51

Other noncurrent assets

 

 

(68)

 

 

(13)

Accounts payable

 

 

50

 

 

79

Accrued liabilities

 

 

(92)

 

 

(20)

Other noncurrent liabilities

 

 

40

 

 

16

Net cash provided by operating activities from continuing operations

 

 

339

 

 

277

Net cash provided by operating activities from discontinued operations

 

 

301

 

 

117

Net cash provided by operating activities

 

 

640

 

 

394

 

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

 

Capital expenditures

 

 

(109)

 

 

(101)

Acquisition of businesses, net of cash acquired

 

 

(370)

 

 

(14)

Proceeds from sale of businesses/assets

 

 

 —

 

 

19

Other, net

 

 

(1)

 

 

 1

Net cash used in investing activities from continuing operations

 

 

(480)

 

 

(95)

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

 

 

(161)

 

 

12

Net cash used in investing activities

 

 

(641)

 

 

(83)

 

(Continued)

8


 

Table of Contents

HUNTSMAN CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

(In Millions)

 

 

 

 

 

 

 

 

 

 

Six months

 

 

ended

 

 

June 30, 

 

    

2018

    

2017

Financing Activities:

 

 

 

 

 

 

Net borrowings (repayments) under revolving loan facility

 

$

315

 

$

(36)

Net repayments on overdraft facilities

 

 

(1)

 

 

 —

Repayments of short-term debt

 

 

(4)

 

 

(8)

Borrowings on short-term debt

 

 

 4

 

 

 4

Repayments of long-term debt

 

 

(13)

 

 

(122)

Proceeds from issuance of long-term debt

 

 

 —

 

 

10

Repayments of notes payable

 

 

(18)

 

 

(13)

Debt issuance costs paid

 

 

(4)

 

 

(3)

Dividends paid to noncontrolling interests

 

 

(31)

 

 

(10)

Contribution from noncontrolling interests

 

 

 —

 

 

 2

Dividends paid to common stockholders

 

 

(78)

 

 

(60)

Repurchase and cancellation of stock awards

 

 

(29)

 

 

(8)

Proceeds from issuance of common stock

 

 

15

 

 

20

Repurchase of common stock

 

 

(135)

 

 

 —

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 provided by (used in) financing activities

 

 

64

 

 

(224)

Effect of exchange rate changes on cash

 

 

(19)

 

 

 8

Increase in cash, cash equivalents and restricted cash

 

 

44

 

 

95

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