Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATING FINANCIAL INFORMATION OF HUNTSMAN INTERNATIONAL LLC

v3.4.0.3
CONDENSED CONSOLIDATING FINANCIAL INFORMATION OF HUNTSMAN INTERNATIONAL LLC
3 Months Ended
Mar. 31, 2016
CONDENSED CONSOLIDATING FINANCIAL INFORMATION OF HUNTSMAN INTERNATIONAL LLC  
CONDENSED CONSOLIDATING FINANCIAL INFORMATION OF HUNTSMAN INTERNATIONAL LLC

 

18. CONDENSED CONSOLIDATING FINANCIAL INFORMATION OF HUNTSMAN INTERNATIONAL LLC

        The following unaudited condensed consolidating financial statements present, in separate columns, financial information for the following: Huntsman International (on a parent only basis), with its investment in subsidiaries recorded under the equity method; the Guarantors on a combined, and where appropriate, consolidated basis; and the nonguarantors on a combined, and where appropriate, consolidated basis. Additional columns present eliminating adjustments and consolidated totals as of March 31, 2016 and December 31, 2015 and for the three months ended March 31, 2016 and 2015. There are no contractual restrictions limiting transfers of cash from the Guarantors to Huntsman International. Each of the Guarantors is wholly-owned by Huntsman International and has fully and unconditionally guaranteed, subject to certain customary release provisions, Huntsman International's outstanding notes on a joint and several basis.

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
AS OF MARCH 31, 2016
(In Millions)

                                                                                                                                                                                    

 

 

Parent
Company

 

Guarantors

 

Nonguarantors

 

Eliminations

 

Consolidated
Huntsman
International
LLC

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

31

 

$

 

$

177

 

$

 

$

208

 

Restricted cash

 

 

 

 

 

 

10

 

 

 

 

10

 

Accounts and notes receivable, net

 

 

31

 

 

105

 

 

1,415

 

 

7

 

 

1,558

 

Accounts receivable from affiliates

 

 

1,885

 

 

4,777

 

 

172

 

 

(6,505

)

 

329

 

Inventories

 

 

87

 

 

338

 

 

1,268

 

 

(4

)

 

1,689

 

Prepaid expenses

 

 

36

 

 

13

 

 

48

 

 

(28

)

 

69

 

Other current assets

 

 

804

 

 

8

 

 

194

 

 

(730

)

 

276

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total current assets

 

 

2,874

 

 

5,241

 

 

3,284

 

 

(7,260

)

 

4,139

 

Property, plant and equipment, net

 

 

459

 

 

1,432

 

 

2,513

 

 

1

 

 

4,405

 

Investment in unconsolidated affiliates

 

 

6,132

 

 

1,644

 

 

256

 

 

(7,688

)

 

344

 

Intangible assets, net

 

 

31

 

 

3

 

 

72

 

 

 

 

106

 

Goodwill

 

 

(13

)

 

82

 

 

54

 

 

 

 

123

 

Deferred income taxes

 

 

480

 

 

 

 

436

 

 

(492

)

 

424

 

Notes receivable from affiliates

 

 

36

 

 

550

 

 

 

 

(586

)

 

 

Other noncurrent assets

 

 

63

 

 

216

 

 

298

 

 

(1

)

 

576

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total assets

 

$

10,062

 

$

9,168

 

$

6,913

 

$

(16,026

)

$

10,117

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

47

 

$

181

 

$

763

 

$

7

 

$

998

 

Accounts payable to affiliates

 

 

3,678

 

 

976

 

 

1,905

 

 

(6,505

)

 

54

 

Accrued liabilities

 

 

78

 

 

811

 

 

518

 

 

(757

)

 

650

 

Note payable to affiliate

 

 

100

 

 

 

 

 

 

 

 

100

 

Current portion of debt

 

 

27

 

 

 

 

76

 

 

 

 

103

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total current liabilities

 

 

3,930

 

 

1,968

 

 

3,262

 

 

(7,255

)

 

1,905

 

Long-term debt

 

 

4,293

 

 

 

 

431

 

 

 

 

4,724

 

Notes payable to affiliates

 

 

697

 

 

 

 

588

 

 

(587

)

 

698

 

Deferred income taxes

 

 

24

 

 

278

 

 

44

 

 

75

 

 

421

 

Other noncurrent liabilities

 

 

161

 

 

244

 

 

820

 

 

1

 

 

1,226

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total liabilities

 

 

9,105

 

 

2,490

 

 

5,145

 

 

(7,766

)

 

8,974

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Huntsman International LLC members' equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Members' equity

 

 

3,200

 

 

4,512

 

 

3,386

 

 

(7,898

)

 

3,200

 

Accumulated (deficit) income

 

 

(957

)

 

746

 

 

(514

)

 

(232

)

 

(957

)

Accumulated other comprehensive (loss) income

 

 

(1,286

)

 

1,420

 

 

(1,267

)

 

(153

)

 

(1,286

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total Huntsman International LLC members' equity

 

 

957

 

 

6,678

 

 

1,605

 

 

(8,283

)

 

957

 

Noncontrolling interests in subsidiaries

 

 

 

 

 

 

163

 

 

23

 

 

186

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total equity

 

 

957

 

 

6,678

 

 

1,768

 

 

(8,260

)

 

1,143

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total liabilities and equity

 

$

10,062

 

$

9,168

 

$

6,913

 

$

(16,026

)

$

10,117

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
AS OF DECEMBER 31, 2015
(In Millions)

                                                                                                                                                                                    

 

 

Parent
Company

 

Guarantors

 

Nonguarantors

 

Eliminations

 

Consolidated
Huntsman
International
LLC

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

44

 

$

1

 

$

212

 

$

 

$

257

 

Restricted cash

 

 

 

 

 

 

12

 

 

 

 

12

 

Accounts and notes receivable, net

 

 

21

 

 

96

 

 

1,298

 

 

5

 

 

1,420

 

Accounts receivable from affiliates

 

 

2,163

 

 

4,730

 

 

163

 

 

(6,716

)

 

340

 

Inventories

 

 

101

 

 

322

 

 

1,275

 

 

(6

)

 

1,692

 

Prepaid expenses

 

 

49

 

 

31

 

 

91

 

 

(60

)

 

111

 

Other current assets

 

 

790

 

 

8

 

 

212

 

 

(704

)

 

306

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total current assets

 

 

3,168

 

 

5,188

 

 

3,263

 

 

(7,481

)

 

4,138

 

Property, plant and equipment, net

 

 

473

 

 

1,433

 

 

2,503

 

 

1

 

 

4,410

 

Investment in unconsolidated affiliates

 

 

5,991

 

 

1,558

 

 

263

 

 

(7,465

)

 

347

 

Intangible assets, net

 

 

32

 

 

3

 

 

51

 

 

 

 

86

 

Goodwill

 

 

(13

)

 

82

 

 

47

 

 

 

 

116

 

Deferred income taxes

 

 

473

 

 

 

 

430

 

 

(485

)

 

418

 

Notes receivable from affiliates

 

 

36

 

 

539

 

 

6

 

 

(581

)

 

 

Other noncurrent assets

 

 

71

 

 

223

 

 

279

 

 

 

 

573

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total assets

 

$

10,231

 

$

9,026

 

$

6,842

 

$

(16,011

)

$

10,088

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

50

 

$

207

 

$

772

 

$

5

 

$

1,034

 

Accounts payable to affiliates

 

 

3,905

 

 

973

 

 

1,891

 

 

(6,717

)

 

52

 

Accrued liabilities

 

 

74

 

 

793

 

 

581

 

 

(765

)

 

683

 

Note payable to affiliate

 

 

100

 

 

 

 

 

 

 

 

100

 

Current portion of debt

 

 

89

 

 

 

 

81

 

 

 

 

170

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total current liabilities

 

 

4,218

 

 

1,973

 

 

3,325

 

 

(7,477

)

 

2,039

 

Long-term debt

 

 

4,229

 

 

 

 

396

 

 

 

 

4,625

 

Notes payable to affiliates

 

 

703

 

 

 

 

576

 

 

(581

)

 

698

 

Deferred income taxes

 

 

24

 

 

276

 

 

36

 

 

82

 

 

418

 

Other noncurrent liabilities

 

 

160

 

 

241

 

 

819

 

 

4

 

 

1,224

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total liabilities

 

 

9,334

 

 

2,490

 

 

5,152

 

 

(7,972

)

 

9,004

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Huntsman International LLC members' equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Members' equity

 

 

3,196

 

 

4,517

 

 

3,394

 

 

(7,911

)

 

3,196

 

Accumulated (deficit) income

 

 

(983

)

 

652

 

 

(557

)

 

(95

)

 

(983

)

Accumulated other comprehensive (loss) income

 

 

(1,316

)

 

1,367

 

 

(1,311

)

 

(56

)

 

(1,316

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total Huntsman International LLC members' equity

 

 

897

 

 

6,536

 

 

1,526

 

 

(8,062

)

 

897

 

Noncontrolling interests in subsidiaries

 

 

 

 

 

 

164

 

 

23

 

 

187

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total equity

 

 

897

 

 

6,536

 

 

1,690

 

 

(8,039

)

 

1,084

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total liabilities and equity

 

$

10,231

 

$

9,026

 

$

6,842

 

$

(16,011

)

$

10,088

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (LOSS)
THREE MONTHS ENDED MARCH 31, 2016
(In Millions)

                                                                                                                                                                                    

 

 

Parent
Company

 

Guarantors

 

Nonguarantors

 

Eliminations

 

Consolidated
Huntsman
International LLC

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade sales, services and fees, net

 

$

251

 

$

566

 

$

1,504

 

$

 

$

2,321

 

Related party sales

 

 

53

 

 

104

 

 

269

 

 

(392

)

 

34

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total revenues

 

 

304

 

 

670

 

 

1,773

 

 

(392

)

 

2,355

 

Cost of goods sold

 

 

240

 

 

548

 

 

1,543

 

 

(393

)

 

1,938

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Gross profit

 

 

64

 

 

122

 

 

230

 

 

1

 

 

417

 

Selling, general and administrative

 

 

40

 

 

46

 

 

135

 

 

 

 

221

 

Research and development

 

 

11

 

 

11

 

 

15

 

 

 

 

37

 

Other operating expense (income)

 

 

12

 

 

(7

)

 

 

 

 

 

5

 

Restructuring, impairment and plant closing costs

 

 

 

 

4

 

 

9

 

 

 

 

13

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Operating income

 

 

1

 

 

68

 

 

71

 

 

1

 

 

141

 

Interest (expense) income

 

 

(54

)

 

8

 

 

(7

)

 

 

 

(53

)

Equity in income of investment in affiliates and subsidiaries

 

 

92

 

 

44

 

 

1

 

 

(136

)

 

1

 

Other income

 

 

1

 

 

 

 

 

 

 

 

1

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Income from continuing operations before income taxes

 

 

40

 

 

120

 

 

65

 

 

(135

)

 

90

 

Income tax benefit (expense)

 

 

15

 

 

(26

)

 

(16

)

 

 

 

(27

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Income from continuing operations

 

 

55

 

 

94

 

 

49

 

 

(135

)

 

63

 

Income (loss) from discontinued operations, net of tax

 

 

1

 

 

 

 

(2

)

 

 

 

(1

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Net income

 

 

56

 

 

94

 

 

47

 

 

(135

)

 

62

 

Net income attributable to noncontrolling interests

 

 

 

 

 

 

(3

)

 

(3

)

 

(6

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Net income attributable to Huntsman International LLC

 

$

56

 

$

94

 

$

44

 

$

(138

)

$

56

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Net income

 

$

56

 

$

94

 

$

47

 

$

(135

)

$

62

 

Other comprehensive income

 

 

30

 

 

55

 

 

50

 

 

(103

)

 

32

 

Comprehensive income attributable to noncontrolling interests

 

 

 

 

 

 

(5

)

 

(3

)

 

(8

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Comprehensive income attributable to Huntsman International LLC

 

$

86

 

$

149

 

$

92

 

$

(241

)

$

86

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (LOSS)
THREE MONTHS ENDED MARCH 31, 2015
(In Millions)

                                                                                                                                                                                    

 

 

Parent
Company

 

Guarantors

 

Nonguarantors

 

Eliminations

 

Consolidated
Huntsman
International LLC

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade sales, services and fees, net

 

$

257

 

$

579

 

$

1,724

 

$

 

$

2,560

 

Related party sales

 

 

68

 

 

122

 

 

267

 

 

(428

)

 

29

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total revenues

 

 

325

 

 

701

 

 

1,991

 

 

(428

)

 

2,589

 

Cost of goods sold

 

 

261

 

 

579

 

 

1,723

 

 

(426

)

 

2,137

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Gross profit

 

 

64

 

 

122

 

 

268

 

 

(2

)

 

452

 

Selling, general and administrative

 

 

45

 

 

40

 

 

159

 

 

 

 

244

 

Research and development

 

 

11

 

 

10

 

 

21

 

 

 

 

42

 

Other operating (income) expense

 

 

(28

)

 

1

 

 

20

 

 

 

 

(7

)

Restructuring, impairment and plant closing costs

 

 

 

 

 

 

93

 

 

 

 

93

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Operating income (loss)

 

 

36

 

 

71

 

 

(25

)

 

(2

)

 

80

 

Interest (expense) income

 

 

(57

)

 

8

 

 

(9

)

 

 

 

(58

)

Equity in income (loss) of investment in affiliates and subsidiaries

 

 

25

 

 

(16

)

 

2

 

 

(9

)

 

2

 

Loss on early extinguishment of debt

 

 

(3

)

 

 

 

 

 

 

 

(3

)

Other income (loss)

 

 

1

 

 

(7

)

 

5

 

 

 

 

(1

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Income (loss) from continuing operations before income taxes

 

 

2

 

 

56

 

 

(27

)

 

(11

)

 

20

 

Income tax benefit (expense)

 

 

4

 

 

(23

)

 

16

 

 

 

 

(3

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Income (loss) from continuing operations

 

 

6

 

 

33

 

 

(11

)

 

(11

)

 

17

 

Loss from discontinued operations, net of tax

 

 

(1

)

 

 

 

(1

)

 

 

 

(2

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Net income (loss)

 

 

5

 

 

33

 

 

(12

)

 

(11

)

 

15

 

Net income attributable to noncontrolling interests

 

 

 

 

 

 

(8

)

 

(2

)

 

(10

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Net income (loss) attributable to Huntsman International LLC

 

$

5

 

$

33

 

$

(20

)

$

(13

)

$

5

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Net income (loss)

 

$

5

 

$

33

 

$

(12

)

$

(11

)

$

15

 

Other comprehensive (loss) income

 

 

(161

)

 

73

 

 

(170

)

 

90

 

 

(168

)

Comprehensive income attributable to noncontrolling interests

 

 

 

 

 

 

 

 

(3

)

 

(3

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Comprehensive (loss) income attributable to Huntsman International LLC

 

$

(156

)

$

106

 

$

(182

)

$

76

 

$

(156

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

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​  

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​  

​  

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​  

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2016
(In Millions)

                                                                                                                                                                                    

 

 

Parent
Company

 

Guarantors

 

Nonguarantors

 

Eliminations

 

Consolidated
Huntsman
International
LLC

 

Net cash provided by (used in) operating activities

 

$

55

 

$

34

 

$

(3

)

$

1

 

$

87

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(6

)

 

(31

)

 

(62

)

 

 

 

(99

)

Cash received from unconsolidated affiliates

 

 

 

 

10

 

 

 

 

 

 

10

 

Investment in affiliate

 

 

(7

)

 

2

 

 

 

 

5

 

 

 

Investment in unconsolidated affiliates

 

 

 

 

(11

)

 

(1

)

 

 

 

(12

)

Increase in receivable from affiliate

 

 

(2

)

 

 

 

 

 

 

 

(2

)

Change in restricted cash

 

 

 

 

 

 

2

 

 

 

 

2

 

Other, net

 

 

 

 

 

 

(1

)

 

 

 

(1

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Net cash used in investing activities

 

 

(15

)

 

(30

)

 

(62

)

 

5

 

 

(102

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net borrowings under revolving loan facilities

 

 

 

 

 

 

45

 

 

 

 

45

 

Repayments of short-term debt

 

 

 

 

 

 

(12

)

 

 

 

(12

)

Borrowings on short-term debt

 

 

 

 

 

 

4

 

 

 

 

4

 

Repayments of long-term debt

 

 

(16

)

 

 

 

(11

)

 

 

 

(27

)

Proceeds from notes payable to affiliate

 

 

 

 

 

 

6

 

 

(6

)

 

 

Repayments of notes payable

 

 

(9

)

 

 

 

 

 

 

 

(9

)

Borrowings on notes payable

 

 

2

 

 

 

 

 

 

 

 

2

 

Dividends paid to noncontrolling intrests

 

 

 

 

 

 

(5

)

 

(4

)

 

(9

)

Contribution from parent

 

 

 

 

2

 

 

7

 

 

(9

)

 

 

Distribution to parent

 

 

 

 

(7

)

 

(6

)

 

13

 

 

 

Dividends paid to parent

 

 

(30

)

 

 

 

 

 

 

 

(30

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Net cash (used in) provided by financing activities

 

 

(53

)

 

(5

)

 

28

 

 

(6

)

 

(36

)

Effect of exchange rate changes on cash

 

 

 

 

 

 

2

 

 

 

 

2

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Decrease in cash and cash equivalents

 

 

(13

)

 

(1

)

 

(35

)

 

 

 

(49

)

Cash and cash equivalents at beginning of period

 

 

44

 

 

1

 

 

212

 

 

 

 

257

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Cash and cash equivalents at end of period

 

$

31

 

$

 

$

177

 

$

 

$

208

 

​  

​  

​  

​  

​  

​  

​  

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​  

​  

​