v3.26.1
Note 20 - Operating Segment Information
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

20. OPERATING SEGMENT INFORMATION 

​

We derive our revenues, earnings and cash flows from the manufacture and sale of a wide variety of diversified organic chemical products. We have three operating segments, which are also our reportable operating segments: Polyurethanes, Performance Products and Advanced Materials. We have organized our business and derived our operating segments around differences in product lines. 

 

The major products of each reportable operating segment are as follows:

​

Segment

    

Products

Polyurethanes

​

MDI, polyols, TPU and other polyurethane-related products

Performance Products

​

Performance amines, ethyleneamines and maleic anhydride

Advanced Materials

​

Technologically-advanced epoxy, phenoxy, acrylic, polyurethane and acrylonitrile-butadiene-based polymer formulations; high performance thermoset resins, curing agents, toughening agents, and carbon nanomaterials

 

Sales between segments are generally recognized at external market prices and are eliminated in consolidation. We use adjusted EBITDA to measure the financial performance of our global business units and for reporting the results of our operating segments. This measure includes all operating items relating to the businesses. The adjusted EBITDA of operating segments excludes items that principally apply to our Company as a whole. The following schedules include revenues, significant segment expenses and adjusted EBITDA for each of our reportable operating segments (dollars in millions). 

 

Huntsman Corporation

 

  

Three months ended March 31, 2026

 
  

Polyurethanes

  

Performance Products

  

Advanced Materials

  

Total

 

Revenues:

                

Reportable segments’ revenues(1)

 $923  $228  $279  $1,430 
                 

Significant segment expenses:

                

Variable direct costs(2)

  698   126   131   955 

Adjusted fixed costs(3)

  185   77   108   370 

Other segment items(4)

  1   (1)  (5)  (5)

Total reportable segments’ adjusted EBITDA(5)

 $39  $26  $45   110 
                 

Reconciliation of total reportable segments’ adjusted EBITDA to loss from continuing operations before income taxes:

                

Interest expense, net

              (21)

Depreciation and amortization

              (73)

Corporate and other costs, net(6)

              (37)

Net income attributable to noncontrolling interests

              12 

Other adjustments:

                

Certain legal and other settlements and related expenses, net

              (4)

Loss on early extinguishment of debt

              (1)

Amortization of pension and postretirement actuarial losses

              (7)

Restructuring, impairment and plant closing and transition costs(7)

              (8)

Loss from continuing operations before income taxes

              (29)
                 

Income tax expense—continuing operations

              (11)

Loss from discontinued operations, net of tax

              (1)

Net loss

             $(41)

 

 

  

Three months ended March 31, 2025

 
  

Polyurethanes

  

Performance Products

  

Advanced Materials

  

Total

 

Revenues:

                

Reportable segments’ revenues(1)

 $912  $257  $249  $1,418 
                 

Significant segment expenses:

                

Variable direct costs(2)

  682   137   116   935 

Adjusted fixed costs(3)

  186   84   101   371 

Other segment items(4)

  2   6   (4)  4 

Total reportable segments’ adjusted EBITDA(5)

 $42  $30  $36   108 
                 

Reconciliation of total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes:

                

Interest expense, net

              (19)

Depreciation and amortization

              (69)

Corporate and other costs, net(6)

              (36)

Net income attributable to noncontrolling interests

              16 

Other adjustments:

                

Business acquisition and integration gain and purchase accounting adjustments, net

              5 

Certain legal and other settlements and related income, net(8)

              33 

Amortization of pension and postretirement actuarial losses

              (7)

Restructuring, impairment and plant closing and transition costs(7)

              (4)

Income from continuing operations before income taxes

              27 
                 

Income tax expense—continuing operations

              (15)

Loss from discontinued operations, net of tax

              (1)

Net income

             $11 

 

Huntsman International

 

  

Three months ended March 31, 2026

 
  

Polyurethanes

  

Performance Products

  

Advanced Materials

  

Total

 

Revenues:

                

Reportable segments’ revenues(1)

 $923  $228  $279  $1,430 
                 

Significant segment expenses:

                

Variable direct costs(2)

  698   126   131   955 

Adjusted fixed costs(3)

  185   77   108   370 

Other segment items(4)

  1   (1)  (5)  (5)

Total reportable segments’ adjusted EBITDA(5)

 $39  $26  $45   110 
                 

Reconciliation of total reportable segments’ adjusted EBITDA to loss from continuing operations before income taxes:

                

Interest expense, net

              (21)

Depreciation and amortization

              (73)

Corporate and other costs, net(6)

              (35)

Net income attributable to noncontrolling interests

              12 

Other adjustments:

                

Certain legal and other settlements and related expenses, net

              (4)

Loss on early extinguishment of debt

              (1)

Amortization of pension and postretirement actuarial losses

              (7)

Restructuring, impairment and plant closing and transition costs(7)

              (8)

Loss from continuing operations before income taxes

              (27)
                 

Income tax expense—continuing operations

              (11)

Loss from discontinued operations, net of tax

              (1)

Net loss

             $(39)

 

 

  

Three months ended March 31, 2025

 
  

Polyurethanes

  

Performance Products

  

Advanced Materials

  

Total

 

Revenues:

                

Reportable segments’ revenues(1)

 $912  $257  $249  $1,418 
                 

Significant segment expenses:

                

Variable direct costs(2)

  682   137   116   935 

Adjusted fixed costs(3)

  186   84   101   371 

Other segment items(4)

  2   6   (4)  4 

Total reportable segments’ adjusted EBITDA(5)

 $42  $30  $36   108 
                 

Reconciliation of total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes:

                

Interest expense, net

              (19)

Depreciation and amortization

              (69)

Corporate and other costs, net(6)

              (34)

Net income attributable to noncontrolling interests

              16 

Other adjustments:

                

Business acquisition and integration gain and purchase accounting adjustments, net

              5 

Certain legal and other settlements and related income, net(8)

              33 

Amortization of pension and postretirement actuarial losses

              (7)

Restructuring, impairment and plant closing and transition costs(7)

              (4)

Income from continuing operations before income taxes

              29 
                 

Income tax expense—continuing operations

              (17)

Loss from discontinued operations, net of tax

              (1)

Net income

             $11 

 

   

March 31,

    

December 31,

  
   

2026

    

2025

  

Total assets:

                

Polyurethanes

   $ 4,138     $ 4,045  

Performance Products

     1,180       1,185  

Advanced Materials

     1,118       1,095  

Total reportable segments’ total assets

     6,436       6,325  

Corporate and other

     695       690  

Total

   $ 7,131     $ 7,015  

  

    Three months ended
    March 31,
   

2026

    

2025

  

Depreciation and amortization:

                

Polyurethanes

   $ 43     $ 39  

Performance Products

     16       15  

Advanced Materials

     12       13  

Total reportable segments’ depreciation and amortization

     71       67  

Corporate and other

     2       2  

Total

   $ 73     $ 69  

 

    Three months ended
    March 31,
   

2026

    

2025

  

Capital expenditures:

                

Polyurethanes

   $ 21     $ 17  

Performance Products

     8       14  

Advanced Materials

     8       4  

Total reportable segments’ capital expenditures

     37       35  

Corporate and other

     1       1  

Total

   $ 38     $ 36  

 

(1)

A reconciliation of total reportable segments’ revenues to total consolidated revenues is provided in “Note 11. Revenue Recognition.”

(2)

Variable direct costs primarily include raw materials, utilities and freight-related costs.

(3)

Adjusted fixed costs primarily include personnel and maintenance costs at our manufacturing facilities, selling, general and administrative expenses and research and development expenses, less depreciation and amortization and an adjustment to remove the related effects of restructuring, impairment and plant closing and transition costs.

(4)

Other segment items include other operating and non-operating income and expense items and foreign currency exchange effects, less adjustments to remove the related effects of primarily the following items: business acquisition and integration gain (expenses) and purchase accounting inventory adjustments, net; certain legal and other settlements and related income (expenses), net; amortization of pension and postretirement actuarial losses; loss on sale of business/assets; and restructuring, impairment and plant closing and transition costs.

(5)

We use segment adjusted EBITDA as the measure of each segment’s profit or loss. Segment adjusted EBITDA is the measure that our chief operating decision maker (“CODM”), who has been determined to be our Chief Executive Officer, uses to make decisions about resources to be allocated to the segments and assess their financial performance. Our CODM evaluates segment adjusted EBITDA through the annual budget process as well as through ongoing periodic reviews of forecasts, budget-to-actual variances, changes from prior periods and when comparing the results of each reportable operating segment with one another. Segment adjusted EBITDA is defined as net income of Huntsman Corporation or Huntsman International, as appropriate, before interest, income tax, depreciation and amortization, net income attributable to noncontrolling interests and certain Corporate and other items, as well as eliminating the following adjustments: (a) certain legal and other settlements and related (expenses) income, net; (b) loss on early extinguishment of debt; (c) amortization of pension and postretirement actuarial losses; (d) restructuring, impairment, plant closing and transition costs; (e) loss from discontinued operations, net of tax; and (f) business acquisition and integration gain and purchase accounting inventory adjustments, net.

(6)

Corporate and other costs, net includes unallocated corporate overhead, unallocated foreign exchange gains and losses, LIFO inventory valuation reserve adjustments, nonoperating income and expense and gains and losses on the disposition of corporate assets.
(7) Includes costs associated with transition activities relating primarily to our program to realign our cost structure in Europe.
(8) Certain legal and other settlements and related income, net includes approximately $33 million for income associated with a litigation matter during the first quarter of 2025. See “Note 15. Commitments and Contingencies—Legal Matters.”