ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾

Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENT INFORMATION (Tables)

v3.19.3
OPERATING SEGMENT INFORMATION (Tables)
 9 Months Ended
Sep. 30, 2019
OPERATING SEGMENT INFORMATION Ìý
Schedule of major products by reportable operating segment

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Segment

ÌýÌýÌýÌý

Products

Polyurethanes

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MDI, PO, polyols, PG, TPU, aniline and MTBE

PerformanceÌýProducts

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Specialty amines, ethyleneamines, maleic anhydride and technology licenses

Advanced Materials

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Basic liquid and solid epoxy resins; specialty resin compounds; cross-linking, matting and curing agents; epoxy, acrylic and polyurethane-based formulations

Textile Effects

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Textile chemicals, dyes and digital inks

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Schedule of revenues and EBITDA for each of the entity's reportable operating segments and reconciliation of adjusted EBITDA to net income

Sales between segments are generally recognized at external market prices and are eliminated in consolidation. Adjusted EBITDA is presented as a measure of the financial performance of our global business units and for reporting the results of our operating segments. The adjusted EBITDA of our reportable operating segments excludes items that principally apply to our Company as a whole. The revenues and adjusted EBITDA from continuing operations for each of our reportable operating segments are as follows (dollars in millions):

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ThreeÌýmonths

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NineÌýmonths

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ended

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ended

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SeptemberÌý30,Ìý

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SeptemberÌý30,Ìý

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ÌýÌýÌýÌý

2019

ÌýÌýÌýÌý

2018

ÌýÌýÌýÌý

2019

ÌýÌýÌýÌý

2018

Revenues:

ÌýÌýÌýÌý

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ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

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ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

Polyurethanes

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$

993

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$

1,126

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$

2,931

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$

3,268

Performance Products

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281

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329

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880

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991

Advanced Materials

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256

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279

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803

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850

Textile Effects

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179

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204

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583

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631

Corporate and eliminations

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(22)

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30

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(57)

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43

Total

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$

1,687

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$

1,968

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$

5,140

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$

5,783

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ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Corporation:

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Segment adjusted EBITDA(1):

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Polyurethanes

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$

146

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$

218

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$

426

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$

668

Performance Products

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38

�

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54

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125

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158

Advanced Materials

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51

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56

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159

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177

Textile Effects

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16

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25

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66

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80

Corporate and other(2)

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(36)

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(45)

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(112)

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(129)

Total

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215

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308

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664

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954

Reconciliation of adjusted EBITDA to net income:

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Interest expense—continuing operations

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(27)

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(30)

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(86)

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(86)

Interest expense—discontinued operations

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(10)

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(30)

Income tax expense—continuing operations

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(30)

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(16)

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(113)

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(41)

Income tax (expense) benefit—discontinued operations

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(25)

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41

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(44)

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(95)

Depreciation and amortization—continuing operations

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(65)

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(62)

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(201)

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(187)

Depreciation and amortization—discontinued operations

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(13)

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(23)

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(59)

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(63)

Net income attributable to noncontrolling interests

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11

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3

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31

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288

Other adjustments:

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Business acquisition and integration expenses

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(3)

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(2)

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(4)

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(10)

Merger costs

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(1)

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(2)

EBITDA from discontinued operations

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106

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(213)

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229

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525

Noncontrolling interest of discontinued operations

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21

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(222)

Fair value adjustments to Venator investment

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(148)

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(90)

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Loss on early extinguishment of debt

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(23)

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(3)

Certain legal settlements and related expenses

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(1)

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(1)

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(1)

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(4)

Certain nonrecurring information technology project implementation costs

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(1)

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(1)

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Amortization of pension and postretirement actuarial losses

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(16)

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(18)

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(49)

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(50)

Plant incident remediation costs

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(5)

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(5)

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

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43

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(5)

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42

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(9)

Net income (loss)

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$

41

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$

(8)

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$

290

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$

965

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ThreeÌýmonths

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NineÌýmonths

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ended

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ended

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SeptemberÌý30,Ìý

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SeptemberÌý30,Ìý

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2019

ÌýÌýÌýÌý

2018

ÌýÌýÌýÌý

2019

ÌýÌýÌýÌý

2018

ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International:

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ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý

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Segment adjusted EBITDA(1):

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Polyurethanes

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$

146

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$

218

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$

426

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$

668

Performance Products

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38

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54

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125

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158

Advanced Materials

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51

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56

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159

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177

Textile Effects

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16

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25

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66

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80

Corporate and other(2)

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(35)

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(45)

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(108)

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(126)

Total

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216

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308

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668

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957

Reconciliation of adjusted EBITDA to net income:

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Interest expense—continuing operations

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(31)

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(36)

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(99)

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(102)

Interest expense—discontinued operations

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(10)

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(30)

Income tax expense—continuing operations

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(29)

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(15)

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(110)

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(38)

Income tax (expense) benefit—discontinued operations

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(25)

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41

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(44)

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(95)

Depreciation and amortization—continuing operations

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(65)

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(60)

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(201)

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(184)

Depreciation and amortization—discontinued operations

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(13)

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(23)

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(59)

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(63)

Net income attributable to noncontrolling interests

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11

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3

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31

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288

Other adjustments:

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Business acquisition and integration expenses

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(3)

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(2)

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(4)

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(10)

Merger costs

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(1)

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(2)

EBITDA from discontinued operations

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106

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(213)

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229

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525

Noncontrolling interest of discontinued operations

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21

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(222)

Fair value adjustments to Venator investment

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(148)

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(90)

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Loss on early extinguishment of debt

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(23)

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(3)

Certain legal settlements and related expenses

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(1)

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(1)

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(1)

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(4)

Certain nonrecurring information technology project implementation costs

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(1)

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(1)

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Amortization of pension and postretirement actuarial losses

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(17)

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(18)

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(52)

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(52)

Plant incident remediation costs

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(5)

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(5)

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

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43

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(5)

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42

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(9)

Net income (loss)

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$

38

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$

(11)

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$

281

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$

956
(1) 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 ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Corporation or ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ 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) business acquisition and integration expenses; (b) merger costs; (c)ÌýEBITDA from discontinued operations; (d) noncontrolling interest of discontinued operations; (e) fair value adjustments to Venator investment; (f) loss on early extinguishment of debt; (g) certain legal settlements and related income (expenses); (h) certain nonrecurring information technology project implementation costs; (i)Ìýgain (loss) on sale of assets; (j) amortization of pension and postretirement actuarial losses; (k) plant incident remediation costs; (l) U.S. Tax Reform Act impact on noncontrolling interest; and (m) restructuring, impairment, plant closing and transition credits (costs).

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(2)ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýCorporate and other 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.