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What changed in Huntsman CORP's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of Huntsman CORP's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+263 added−298 removedSource: 10-K (2024-02-22) vs 10-K (2023-02-21)

Top changes in Huntsman CORP's 2023 10-K

263 paragraphs added · 298 removed · 221 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

87 edited+19 added−18 removed85 unchanged
Biggest changeSLIC, our manufacturing joint venture with BASF and three Chinese chemical companies, produces MNB, aniline and crude MDI. We effectively own 35% of SLIC and account for our investment under the equity method. HPS, our splitting joint venture with Shanghai Chlor-Alkali Chemical Company, Ltd, manufactures pure MDI, polymeric MDI, MDI variants and formulated MDI systems.
Biggest changeThis facility is part of our existing Huntsman Polyurethanes Shanghai Ltd. (“HPS”), site, which is our splitting joint venture with Shanghai Chlor-Alkali Chemical Company, Ltd that also manufactures pure MDI, polymeric MDI, MDI variants and formulated MDI systems. We own 70% of HPS and it is consolidated in our financial statements. For more information, see “Note 1.
Ethics and Compliance: At Huntsman our commitment to our values of Honesty, Integrity, Respect and Responsibility unite us globally and fosters high ethical standards in our relationships with each other, with our customers and with all those we do business with.
Ethics and Compliance: At Huntsman our commitment to our values of Honesty, Integrity, Respect and Responsibility unite us globally and fosters high ethical standards in our relationships with each other, with our customers and with all those we do business.
Although the agreement does not create any binding obligations for nations to limit their GHG emissions, it does include pledges to voluntarily limit or reduce future emissions. The U.S. rejoined the Paris Agreement on February 19, 2021. In addition, in September 2021, U.S.
Although the Paris Agreement does not create any binding obligations for nations to limit their GHG emissions, it does include pledges to voluntarily limit or reduce future emissions. The U.S. rejoined the Paris Agreement on February 19, 2021. In addition, in September 2021, U.S.
Major end markets include: building insulation, construction products, automotive, including electric vehicles, and footwear. They are also used in cold chain, furniture and specialized engineering applications. Benzene, chlorine and industrial gases Polyurethanes Polyols Polyols are combined with MDI and other isocyanates to create a broad spectrum of polyurethane products, such as rigid and flexible foams and other non-foam applications.
Major end markets include: building insulation, construction products, automotive, including electric vehicles, and footwear. They are also used in cold chain, furniture and specialized engineering applications. Benzene, chlorine and industrial gases Polyols Polyols are combined with MDI and other isocyanates to create a broad spectrum of polyurethane products, such as rigid and flexible foams and other non-foam applications.
We offer high-end adhesives and composite formulations, specialty resins, toughening agents and rubber polymers to a large variety of industrial applications, such as sport equipment, leisure and shipping boats, engineering machineries, consumer electronics, rubber consumables and the do-it-yourself market. ARALDITE® is an important brand in high-performance adhesive technologies.
We offer high-performance adhesives and composite formulations, specialty resins, toughening agents and rubber polymers to a large variety of industrial applications, such as sport equipment, leisure and shipping boats, engineering machineries, consumer electronics, rubber consumables and the do-it-yourself market. ARALDITE® is an important brand in high-performance adhesive technologies.
These distributors and agents typically promote our products to smaller end-use customers who cannot be served cost effectively by our direct sales forces. 7 Table of Contents Manufacturing and Operations Our Performance Products segment has the capacity to produce a variety of products at 10 manufacturing locations in North America, EAME and APAC.
These distributors and agents typically promote our products to smaller end-use customers who cannot be served as cost effectively by our direct sales forces. 7 Table of Contents Manufacturing and Operations Our Performance Products segment has the capacity to produce a variety of products at 10 manufacturing locations in North America, EAME and APAC.
Our customers produce polyurethane-based products through the combination of an isocyanate, such as MDI, with polyols, which are derived largely from PO and EO. We are able to produce over 2,500 distinct MDI-based polyurethane products by modifying the MDI molecule through varying the proportion and type of polyol used and by introducing other chemical additives to our MDI formulations.
Our customers produce polyurethane-based products through the combination of an isocyanate, such as MDI, with polyols, which are derived largely from PO. We are able to produce over 2,500 distinct MDI-based polyurethane products by modifying the MDI molecule through varying the proportion and type of polyol used and by introducing other chemical additives to our MDI formulations.
Our strategy is focused on growing our differentiated product offering (specialty MDI and polyols, formulated MDI-based systems and TPU), which requires a greater emphasis on formulating capability and technical solutions to help our downstream customers meet the desired effect required in their applications.
Our strategy is focused on growing our differentiated product offering (differentiated MDI and polyols, formulated MDI-based systems and TPU), which requires a greater emphasis on formulating capability and technical solutions to help our downstream customers meet the desired effect required in their applications.
ABB, BMW, Bodo Moeller, Boeing, Bosch, GMZ, Motic (Xiamen), Schneider, Siemens, Speed Fair and TTM BLR, epichlorohydrin, amines, polyols, isocyanates, acrylic materials, hardeners, fillers, butadiene and acrylonitrile 3M, Henkel, Westlake and Xiongrun High performance thermoset resins. curing and toughening agents and carbon nanotubes additives High performance chemical building blocks sold to formulators who develop formulations for aerospace, automotive, oil and gas, coatings, construction, electronics and electrical insulation applications. 3M, Azelis, Azko, Henkel, Hexcel, Hilti, Omya, Parker Hannifin, Sherwin-Williams, Solvay and Syngenta Epichlorohydrin, amines, phenols, aminophenols, fatty acids, butadiene and acrylonitrile Evonik, Kaneka, Sumitomo and Westlake 2 Table of Contents Polyurethanes General We are a leading global manufacturer and marketer of a broad range of polyurethane chemicals, including MDI products, polyols and TPU (each discussed in more detail below under “—Products and Markets”).
ABB, BMW, Bodo Moeller, Boeing, Bosch, GMZ, Isola, Motic (Xiamen), Schneider, Siemens, Speed Fair and TTM BLR, epichlorohydrin, amines, polyols, isocyanates, acrylic materials, hardeners, fillers, butadiene and acrylonitrile 3M, Henkel, Westlake and Xiongrun High performance thermoset resins, curing and toughening agents and carbon nanotubes additives High performance chemical building blocks sold to formulators who develop formulations for aerospace, automotive, oil and gas, coatings, construction, electronics and electrical insulation applications. 3M, Azelis, Azko, Henkel, Hexcel, Hilti, Omya, Parker Hannifin, Sherwin-Williams, Solvay and Syngenta Epichlorohydrin, amines, phenols, aminophenols, fatty acids, butadiene and acrylonitrile Evonik, Kaneka, Sumitomo and Westlake 2 Table of Contents Polyurethanes General We are a leading global manufacturer and marketer of a broad range of polyurethane chemicals, including MDI products, polyols and TPU (each discussed in more detail below under “Products and Markets”).
Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations.” 1 Table of Contents The following table identifies the key products, principal end markets and applications, representative customers, raw materials and representative competitors of each of our business segments: Product lines End markets / applications Representative customers Raw materials Representative competitors MDI Polyurethane chemicals are used to produce rigid and flexible foams, as well as coatings, adhesives, sealants and elastomers.
Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations.” 1 Table of Contents The following table identifies the key product lines, principal end markets and applications, representative customers, raw materials and representative competitors of each of our business segments: Product lines End markets / applications Representative customers Raw materials Representative competitors Polyurethanes MDI Polyurethane chemicals are used to produce rigid and flexible foams, as well as coatings, adhesives, sealants and elastomers.
We have successfully exercised our rights under these contractual covenants for a number of sites and, where applicable, mitigated our ultimate remediation liabilities. We cannot assure you, however, that the liabilities for all such matters subject to indemnity will be honored by the prior owner or that our existing indemnities will be sufficient to cover our liabilities for such matters.
We have successfully exercised our rights under these contractual covenants for a number of sites and, where applicable, mitigated our ultimate remediation liabilities. We cannot assure you, however, that the liabilities for all such matters subject to indemnity will be honored by prior owners or that our existing indemnities will be sufficient to cover our liabilities for such matters.
The diagram below provides an overview of how we leverage our technology and experience with the MDI splitter by transforming crude MDI into differentiated higher value systems and markets. 4 Table of Contents Sales and Marketing We market our polyurethane chemicals to over 6,500 customers in more than 90 countries.
The diagram below provides an overview of how we leverage our technology and experience with the MDI splitter by transforming crude MDI into differentiated higher value systems and markets. 4 Table of Contents Sales and Marketing We market our polyurethane chemicals to over 6,300 customers in more than 90 countries.
Raw Materials The main raw materials used in the production of our amines are EO, PO, glycols, EDC, caustic soda, ammonia, hydrogen, methylamines and acrylonitrile. The majority of these raw materials are available from multiple sources in the merchant market at competitive prices. Maleic anhydride is produced by the reaction of normal butane with oxygen.
Raw Materials The main raw materials used in the production of our amines are EO, PO, glycols, EDC, caustic soda, ammonia, hydrogen, methylamines, and acrylonitrile. Most of these raw materials are available from multiple sources in the merchant market at competitive prices. Maleic anhydride is produced by the reaction of normal butane with oxygen.
We sell to over 1,900 customers in the following end markets: aerospace, automotive, oil and gas, liquid natural gas transport, coatings and construction, printed circuit boards, consumer, industrial and automotive electronics, consumer and industrial appliances, electrical power transmission and distribution, recreational sports equipment, medical appliances and food and beverage packaging. Products and Markets Aerospace.
We sell to over 1,700 customers in the following end markets: aerospace, automotive, oil and gas, liquid natural gas transport, coatings and construction, printed circuit boards, consumer, industrial and automotive electronics, consumer and industrial appliances, electrical power transmission and distribution, recreational sports equipment, medical appliances and food and beverage packaging. Products and Markets Aerospace.
Our Advanced Materials segment has a long history of delivering a wide range of solutions meeting stringent requirements for automotive electronics applications, such as high temperature and chemical resistance, frame-retardancy and excellent mechanical and dielectric properties.
Our Advanced Materials segment has a long history of delivering a wide range of solutions meeting stringent requirements for automotive electronics applications, such as high temperature and chemical resistance, flame-retardancy and excellent mechanical and dielectric properties.
RESEARCH AND DEVELOPMENT We support our businesses with a major commitment to research and development, technical services and process engineering improvement. Our research and development centers are located in The Woodlands, Texas; Everberg, Belgium; Basel, Switzerland; Merrimack, New Hampshire; and Shanghai, China.
RESEARCH AND DEVELOPMENT We support our businesses with a major commitment to research and development, technical services and process engineering improvement. Our research and development centers are located in The Woodlands, Texas; Tienen, Belgium; Basel, Switzerland; Merrimack, New Hampshire; and Shanghai, China.
Polyurethane chemicals are used to produce rigid and flexible foams, as well as coatings, adhesives, sealants and elastomers. We focus on the higher-margin, higher-growth markets for specialty MDI-based polyurethane systems and polyurethane component molecules.
Polyurethane chemicals are used to produce rigid and flexible foams, as well as coatings, adhesives, sealants and elastomers. We focus on the higher-margin, higher-growth markets for differentiated MDI-based polyurethane systems and polyurethane component molecules.
In addition, the EU has set a binding target to reduce domestic GHG emissions by at least 40% below the 1990 level by 2030 and a binding target to increase the share of renewable energy to at least 32% of the EU’s energy consumption by 2030.
In addition, the EU has set a binding target to reduce domestic GHG emissions by at least 40% below 1990 levels by 2030 and a binding target to increase the share of renewable energy to at least 32% of the EU’s energy consumption by 2030.
Our sales strategy is to continue to increase sales to existing customers and to attract new customers by providing innovative solutions, quality products, reliable supply, competitive prices and superior customer service. Manufacturing and Operations Our world-scale MDI production facilities are located in Geismar, Louisiana; Rotterdam, The Netherlands; and through our joint ventures in Caojing, China.
Our sales strategy is to continue to increase sales to existing customers and to attract new customers by providing innovative solutions, quality products, reliable supply, competitive prices and superior customer service. Manufacturing and Operations Our world-scale MDI production facilities are located in Geismar, Louisiana; Rotterdam, the Netherlands; and Caojing, China.
Our adhesive markets are being driven by cost effective production and assembling and are serviced by our leading positions in systems formulations, curing and toughening technologies backed by application and process manufacturing knowledge.
General Industry. Our adhesive markets are being driven by cost effective production and assembling and are serviced by our leading positions in systems formulations, curing and toughening technologies backed by application and process manufacturing knowledge.
Coatings Infrastructure. Our long-standing position in these markets is served by our specialty resins and additives. Our additives and specialty resins offerings, including epoxy hardeners, phenoxy and acrylonitrile-butadiene reactive liquid polymers and high solid or water-based components, are value-added products that allow our customers to differentiate their own products. Our major competitors include Allnex, Evonik, Kukdo and Westlake. General Industry.
Coatings Infrastructure. Our long-standing position in these markets is served by our specialty resins and additives. Our additives and specialty resins offerings, including epoxy hardeners, phenoxy and acrylonitrile-butadiene reactive liquid polymers and high solid or water-based components, are value-added products that allow our customers to differentiate their own products. Our major competitors include Aditya Birla, Allnex, Evonik, Kukdo and Westlake.
We focus on formulations and systems that are used to address customer-specific needs in a wide variety of industrial and consumer applications. Our products are used either as replacements for traditional materials or in applications where traditional materials do not meet demanding engineering specifications.
We focus on chemical compounds and formulations that are used to address customer-specific needs in a wide variety of industrial and consumer applications. Our products are used either as replacements for traditional materials or in applications where traditional materials do not meet demanding engineering specifications.
Joint Venture We consolidate the results of AAC, our 50%-owned joint venture with the Zamil Group. AAC operates an ethyleneamines manufacturing plant in Jubail, Saudi Arabia. The plant has an approximate annual capacity of 70 million pounds. We purchase and sell all of the production from this joint venture.
Joint Venture We consolidate the results of AAC, our 50%-owned manufacturing joint venture with the Zamil Group. AAC operates an ethyleneamines manufacturing plant in Jubail, Saudi Arabia. The plant has an approximate annual capacity of 70 million pounds. We purchase and then market all the production from this joint venture.
Environmental Health and Safety Matters” to our consolidated financial statements. 11 Table of Contents Environmental, Health and Safety Systems We are committed to achieving and maintaining compliance with all applicable EHS legal requirements, and we have developed policies and management systems that are intended to identify the multitude of EHS legal requirements applicable to our operations, enhance compliance with applicable legal requirements, improve the safety of our employees, contractors, community neighbors and customers and minimize the production and emission of wastes and other pollutants.
Environmental Health and Safety Matters” to our consolidated financial statements. 11 Table of Contents Environmental, Health and Safety Systems We are committed to achieving and maintaining compliance with all applicable EHS legal requirements, and we have developed policies and management systems that are designed to identify the myriad EHS legal requirements applicable to our operations, enhance compliance with applicable legal requirements, improve the safety of our employees, contractors, community neighbors and customers and minimize the production and emission of wastes and other pollutants.
Moreover, we do not believe that the termination of intellectual property rights expected to occur over the next several years, either individually or in the aggregate, will materially adversely affect our business, financial condition or results of operations. HUMAN CAPITAL MANAGEMENT As of December 31, 2022, we employed approximately 7,000 associates in our operations around the world.
Moreover, we do not believe that the termination of intellectual property rights expected to occur over the next several years, either individually or in the aggregate, will materially adversely affect our business, financial condition or results of operations. HUMAN CAPITAL MANAGEMENT As of December 31, 2023, we employed approximately 6,000 associates in our operations around the world.
President Biden publicly announced the Global Methane Pledge, a pact that aims to reduce global methane emissions at least 30% below 2020 levels by 2030. Since its formal launch at the United Nations Climate Change Conference (COP26), over 100 countries have joined the pledge. Domestic efforts to curb GHG emissions are being led by the U.S.
President Biden publicly announced the Global Methane Pledge, a pact that aims to reduce global methane emissions at least 30% below 2020 levels by 2030. Since its formal launch at the United Nations Climate Change Conference (“COP26”), over 100 countries have joined the Global Methane Pledge. Domestic efforts to curb GHG emissions are being driven by the U.S.
We also operate 28 strategically located downstream facilities, of which 21 are polyurethane formulation facilities, commonly referred to in the chemical industry as “systems houses”. Our systems houses are located in close proximity to our customers worldwide, which enables us to focus on customer support, technical service and a differentiated product offering.
We also operate 26 strategically located downstream facilities, of which 17 are polyurethane formulation facilities, commonly referred to in the chemical industry as “systems houses”. Our systems houses are located in close proximity to our customers worldwide, which enables us to focus on customer support, technical service and a differentiated product offering.
A key metric used to assess the safety performance of our operations is the ASTM 2920 Level 1 injury rate, which follows a uniform international method for recording occupational injuries and illnesses. In the years ended December 31, 2022 and 2021, we had injury rates of 0.21 and 0.10, respectively.
A key metric used to assess the safety performance of our operations is the ASTM 2920 Level 1 injury rate, which follows a uniform international method for recording occupational injuries and illnesses. In the years ended December 31, 2023 and 2022, we had injury rates of 0.13 and 0.21, respectively.
Although EHS legal requirements are constantly changing and are frequently difficult to comply with, these EHS management systems are designed to assist us in our compliance goals while also fostering efficiency and improvement and reducing overall risk to us.
Although EHS legal requirements are constantly changing and, for that reason, are frequently difficult to comply with, these EHS management systems are designed to assist us in our compliance goals while also fostering efficiency and improvement and reducing overall risk to us.
We also have licensed or sub-licensed intellectual property rights to third parties. We have associated brand names with a number of our products, and we have approximately 2,900 trademark registrations and 178 pending trademark applications globally. These registrations and applications include extensions of protection under the Madrid system for the international registration of marks.
We also have licensed or sub-licensed intellectual property rights to third parties. We have associated brand names with a number of our products, and we have approximately 2,915 trademark registrations and 132 pending trademark applications globally. These registrations and applications include extensions of protection under the Madrid system for the international registration of marks.
We own approximately 2,485 unexpired patents and have approximately 965 patent applications (including provisionals) currently pending. While a presumption of validity exists with respect to issued U.S. patents, we cannot assure that any of our patents will not be challenged, invalidated, circumvented or rendered unenforceable.
We own approximately 2,610 unexpired patents and have approximately 970 patent applications (including provisionals) currently pending. While a presumption of validity exists with respect to issued U.S. patents, we cannot assure that any of our patents will not be challenged, invalidated, circumvented or rendered unenforceable.
Approximately 2,000 of these employees are located in the U.S., while approximately 5,000 are located in other countries. We believe our employees are the foundation of our success.
Approximately 2,000 of these employees are located in the U.S., while approximately 4,000 are located in other countries. We believe our employees are the foundation of our success.
The strong global push for electric vehicles opens new opportunities in electric motor thermal management and battery performance enhancement with our innovative encapsulants, toughening agents and carbon materials. Electrical Infrastructure. We are a leading global supplier of insulating materials for motors, generators, switchgears, distribution and instrument transformers, and insulators and bushings for electrical power applications.
The strong global push for electric vehicles opens new opportunities in electric motor thermal management, hydrogen storage systems and battery performance enhancement with our innovative encapsulants, composite systems, toughening agents and carbon nanomaterials. Electrical Infrastructure. We are a leading global supplier of insulating materials for motors, generators, switchgears, distribution and instrument transformers, and insulators and bushings for electrical power applications.
In order to service our customers efficiently, we maintain manufacturing plants around the world with a strategy of global, regional and local manufacturing employed to optimize the level of service and minimize the cost to our customers.
In order to service our customers efficiently, we maintain both synthesis and formulations manufacturing plants around the world with a strategy of global, regional and local manufacturing employed to optimize the level of service and minimize the cost to our customers.
Our amines business is organized around the following product groups: Product group Applications Polyetheramines Epoxy composites, construction and flooring, paints and coatings, lubricant and fuel additives, adhesives, agrochemicals, oilfield chemicals, printing inks and pigment dispersion Ethyleneamines Chemical building block used in lubricant and fuel additives, epoxy hardeners, wet strength resins, chelating agents and fungicides Diversified and specialty amines, including DGA™ Agent, JEFFCAT® catalysts and E-GRADE® specialty amines and carbonates Gas treating, agricultural chemicals, polyurethane foams and insulation, E-GRADE® specialty amines for semiconductor manufacturing and electrolytes for electric vehicle batteries Polyetheramines are produced by reacting polyol with ammonia.
Our amines business is organized around the following product groups: Product group Applications Polyetheramines Epoxy composites, construction and flooring, paints and coatings, adhesives, fuel additives, agrochemicals, oilfield chemicals and pigment dispersion Ethyleneamines Chemical building block used in lubricant additives, epoxy hardeners, wet strength resins, oilfield chemicals, water treatment and fungicides Diversified and specialty amines, including DGA™ Agent, JEFFCAT® catalysts and E-GRADE® specialty amines and carbonates Gas treating, agrochemicals, polyurethane insulation and flexible foams, E-GRADE® specialty amines for semiconductor manufacturing and electrolytes for electric vehicle batteries Polyetheramines are produced by reacting polyol with ammonia.
Afton, Bayer, Chevron Oronite, DuPont, Evonik, Hexion, Infineum, Ingevity, Lubrizol, Olin, PPG, Quadra and Sherwin-Williams EO, PO, glycols, ethylene dichloride, caustic soda, ammonia, hydrogen, methylamines and acrylonitrile BASF, Delamine, Dow, Evonik, Nouryon and Tosoh Maleic anhydride Maleic anhydride is an intermediate chemical used primarily to produce unsaturated polyester resins (UPRs).
Afton, Bayer, Chevron Oronite, DuPont, Evonik, Infineum, Lubrizol, Olin, PPG and Quadra Chemicals EO, PO, glycols, ethylene dichloride, caustic soda, ammonia, hydrogen, methylamines and acrylonitrile BASF, Delamine, Dow, Evonik, Nouryon and Tosoh Maleic anhydride Maleic anhydride is an intermediate chemical used primarily to produce unsaturated polyester resins (UPRs).
Volume growth in our Polyurethanes segment has been driven primarily by global economic activity and the continued substitution of MDI-based products for other materials across a broad range of applications. We operate three major polyurethane manufacturing facilities in the U.S., Europe and China.
Volume growth in our Polyurethanes segment has been driven primarily by global economic activity and the continued substitution of MDI-based products for other materials across a broad range of applications. We operate three major polyurethane manufacturing facilities in the United States (“U.S.”), Europe and China.
Performance Products General Our Performance Products segment has leading global positions in the manufacture and sale of amines and maleic anhydride and serves a wide variety of consumer and industrial end markets. Our Performance Products segment is organized by region and product family: amines and maleic anhydride.
Performance Products General Our Performance Products segment has leading global positions in the manufacture and sale of amines and maleic anhydride and serves a wide variety of consumer and industrial end markets. Our Performance Products segment is organized by region and product family: amines (both performance amines and ethyleneamines) as well as maleic anhydride.
As a result, we have made a number of “bolt-on” acquisitions in recent years to expand our downstream footprint and align with our strategic intent. Along with this, we continuously evaluate our global footprint to better utilize our assets and systems houses while providing strong customer support and technical service.
As a result, we have made a number of “bolt-on” acquisitions in the last decade to expand our downstream footprint and align with our strategic intent. Along with this, we continuously evaluate our global footprint to better utilize our assets and systems houses while providing strong customer support and technical service.
Although these sites are subject to existing GHG legislation, few have experienced or anticipate significant cost increases as a result of these programs, although it is possible that GHG emission restrictions may increase over time.
Although these sites are subject to existing GHG legislation, few have experienced or anticipate significant cost increases because of these programs, although it is possible that GHG emission restrictions may increase over time.
Our SPF products offer significant environmental benefits, as our proprietary manufacturing process transforms low quality PET plastic bottles into highly effective energy-saving polyurethane insulation. HBS offers attractive growth potential as energy efficiency standards and requirements increase globally and continue to shift towards a more green economy.
Our SPF products offer significant environmental benefits, as our proprietary manufacturing process transforms raw material from low quality PET plastic bottles into highly effective energy-saving polyurethane insulation. HBS offers attractive growth potential as energy efficiency standards and requirements increase globally and continue to shift towards a greener economy.
We are a leading global producer in many of our key product lines, including MDI, amines, maleic anhydride and epoxy-based polymer formulations. Our revenues for the years ended December 31, 2022, 2021 and 2020 were $8,023 million, $7,670 million and $5,421 million, respectively.
We are a leading global producer in many of our key product lines, including MDI, amines, maleic anhydride and epoxy-based polymer formulations. Our revenues for the years ended December 31, 2023, 2022 and 2021 were $6,111 million, $8,023 million and $7,670 million, respectively.
For a reconciliation of adjusted EBITDA to net income attributable to Huntsman Corporation and cash provided by operating activities, see “Part II. Item 7.
For a reconciliation of total adjusted EBITDA to net income attributable to Huntsman Corporation and cash provided by operating activities from continuing operations, see “Part II. Item 7.
In April of 2022, the U.S. Securities and Exchange Commission (“SEC”) proposed new rules regarding the reporting of GHG emissions and impacts of such emissions and climate change generally on businesses subject to SEC reporting requirements. These rules, if adopted, could result in additional costs for preparing financial statements and additional liability.
Securities and Exchange Commission (“SEC”) proposed new rules regarding the reporting of GHG emissions and impacts of such emissions and climate change generally on businesses subject to SEC reporting requirements. These rules, if adopted, could result in additional costs to prepare financial statements and additional liability.
Maleic anhydride is a highly versatile chemical intermediate used for products sold into construction and infrastructure, marine and fuel additives, among other applications. Notably, maleic anhydride is used to produce unsaturated polyester resins (UPRs), which are mainly used in the production of fiberglass reinforced resins. Maleic anhydride is also used in the production of lubricants, food additives and artificial sweeteners.
Maleic anhydride is a highly versatile chemical intermediate used for products sold into construction, infrastructure, industrial and marine applications. Notably, maleic anhydride is used to produce unsaturated polyester resins (UPRs), which are mainly used in the production of fiberglass reinforced resins. Maleic anhydride is also used in the production of lubricant additives as well as food additives and artificial sweeteners.
We operate all of our businesses through Huntsman International, our wholly-owned subsidiary. Huntsman International is a Delaware limited liability company and was formed in 1999. For information regarding significant recent developments, see “Note 1. General—Recent Developments” to our consolidated financial statements.
Discontinued Operations and Business Dispositions—Discontinued Operations—Sale of Textile Effects Business” to our consolidated financial statements. We operate all of our businesses through Huntsman International, our wholly-owned subsidiary. Huntsman International is a Delaware limited liability company and was formed in 1999. For information regarding significant recent developments, see “Note 1. General—Recent Developments” to our consolidated financial statements.
We also operate two specialty polyester polyol manufacturing facilities focused on the insulation market, three downstream TPU manufacturing facilities in the United States (“U.S.”), Europe and China and two spray foam manufacturing sites located in the U.S. and Canada.
We also operate two specialty polyester polyol manufacturing facilities focused on the insulation market, three downstream TPU manufacturing facilities in the U.S., Europe and China and two spray polyurethane foam (“SPF”) manufacturing sites located in the U.S. and Canada.
Customers will use either polyurethane component molecules produced for mass sales or polyurethane systems tailored to specific requirements. By varying the blend, additives and specifications of the polyurethane chemicals, manufacturers are able to develop and produce a breadth and variety of polyurethane-based products. MDI.
Customers will use either polyurethane component molecules produced for mass sales or polyurethane systems tailored to specific requirements. By varying the blend, additives and specifications of the polyurethane chemicals, manufacturers are able to develop and produce a breadth and variety of polyurethane-based products. MDI. MDI is an aromatic diisocyanate molecule used in the manufacture of polyurethane-based products.
We believe that the lack of a significant spot market for aniline means that in order to remain competitive, MDI manufacturers must either be integrated with an aniline manufacturing facility or have long-term, cost-competitive aniline supply contracts.
The majority of our aniline is consumed internally with some sold to third parties. We believe that the lack of a significant spot market for aniline means that in order to remain competitive, MDI manufacturers must either be integrated with an aniline manufacturing facility or have long-term, cost-competitive aniline supply contracts.
For the years ended December 31, 2022, 2021 and 2020, our capital expenditures for EHS matters totaled $44 million, $36 million and $18 million, respectively, and our estimated capital expenditures for 2023 is expected to be $32 million.
For the years ended December 31, 2023, 2022 and 2021, our capital expenditures for EHS matters totaled $30 million, $44 million and $36 million, respectively, and our estimated capital expenditures for EHS matters for 2024 is expected to be approximately $40 million.
As a result of this joint venture, we are able to achieve greater scale and lower costs for our products than we would otherwise have been able to obtain. Rubicon is consolidated in our financial statements. Chinese MDI Joint Ventures. We are involved in two related joint ventures which operate MDI production facilities in Caojing, China.
As a result of this joint venture, we are able to achieve greater scale and lower costs for our products than we would otherwise have been able to obtain. Rubicon is consolidated in our financial statements. Chinese MDI Joint Venture.
GLOSSARY OF CHEMICAL TERMS BDO—butane diol BLR—base liquid resin DGA ® Agent—DIGLYCOLAMINE ® agent DPA—diphenylamine EDC—ethylene dichloride EG—ethylene glycol EO—ethylene oxide MDA—methylene dioxy amphetamine MDI—methyl diphenyl diisocyanate MNB—mononitrobenzene MTBE—methyl tertiary-butyl ether PBT—polybutylene terephthalate PO—propylene oxide Polyols—a substance containing several hydroxyl groups. A diol, triol and tetrol contain two, three and four hydroxyl groups, respectively.
GLOSSARY OF CHEMICAL TERMS BDO—butane diol BLR—base liquid resin DGA ® Agent—DIGLYCOLAMINE ® agent DPA—diphenylamine EDC—ethylene dichloride EO—ethylene oxide MDA—methylene dioxy amphetamine MDI—methyl diphenyl diisocyanate MTBE—methyl tertiary-butyl ether PO—propylene oxide Polyols—a substance containing several hydroxyl groups. A diol, triol and tetrol contain two, three and four hydroxyl groups, respectively. TDI—toluene diisocyanate TPU—thermoplastic polyurethane UPR—unsaturated polyester resin
Andercol, Chevron Oronite, Cranston, Dixie, Ingevity, Lubrizol, MFG Chemical, Polynt-Reichhold and Primary Products Normal butane AOC, Bartek, INEOS and Lanxess Advanced Materials Technologically- advanced epoxy, phenoxy, acrylic, polyurethane and acrylonitrile-butadiene-based polymer formulations Aerospace and industrial adhesives; composites for aerospace, automotive, sport equipment and infrastructures; electrical power transmission and electric vehicles; automotive industrial and consumer electronics.
Afton, BASF, Chevron Oronite, Infineum, Ingevity, Primient and Solenis Normal butane AOC, Bartek, INEOS, Lanxess and Polynt-Reichhold Advanced Materials Technologically- advanced epoxy, phenoxy, acrylic, polyurethane and acrylonitrile-butadiene-based polymer formulations Aerospace and industrial adhesives; composites for aerospace, automotive, sport equipment and infrastructures; electrical power transmission and electric vehicles; automotive industrial and consumer electronics.
In more specialty products for certain markets (e.g., lubricants, coatings, construction, agrochemicals, oilfield, automotive, gas treating and insulation), our marketing efforts are focused on how our product offerings perform in certain customer applications. We believe that this approach enhances the value of our product offerings and creates opportunities for ongoing differentiation in our development activities with our customers.
In more specialty products for certain markets (e.g., coatings, fuel additives, epoxy-based composites, construction, automotive, polymer modification, energy and semiconductor manufacturing), our marketing efforts are focused on how our product offerings perform in customer applications. We believe that this approach enhances the value of our product offerings and creates opportunities for ongoing differentiation in our development activities with our customers.
Adient, Autoneum, Henkel, IBP, LafargeHolcim, Lear, Leggett & Platt, Louisiana Pacific, Magna, Pursell, Recticel and West Fraser PO, polyester polyols and EO BASF, Carlisle Construction Materials, Covestro, Dow, Lubrizol and Wanhua Chemical Group TPU TPU is a high-quality, fully-formulated thermal plastic that can be tailored with unique qualities.
Autoneum, Carpenter, GAF, Johns Manville, LafargeHolcim, Lear, Louisiana Pacific, Magna, Schmitz Cargobull, TopBuild and West Fraser PO, polyester polyols and EO BASF, Carlisle Construction Materials, Coim, Covestro, Dow, Lubrizol and Wanhua Chemical Group TPU TPU is a high-quality, fully-formulated thermal plastic that can be tailored with unique qualities.
While these competitors and others produce various types and quantities of polyurethane chemicals, we focus on MDI and MDI-based formulated polyurethane systems. Our downstream business is fragmented with different competitors in various markets and regions. Our competitors in downstream markets include Carlisle Construction Materials, Coim and Lubrizol.
Competition Our major competitors in the polyurethane chemicals market include BASF, Covestro, Dow, Lubrizol and Wanhua Chemical Group. While these competitors and others produce various types and quantities of polyurethane chemicals, we focus on MDI and MDI-based formulated polyurethane systems. Our downstream business is fragmented with different competitors in various markets and regions.
We believe we are the largest global producer of polyetheramines, one of the largest producers of 2-(2-amino ethoxy) ethanol, sold under our DGA ™ brand, the largest global producer making the full range of ethyleneamines, the second largest producer of morpholine and a leading global producer of low emission polyurethane catalysts.
We believe we are the largest global producer of polyetheramines, the largest producer of 2-(2-amino ethoxy) ethanol (sold under our DGA ® brand), the largest global producer of the full range of ethyleneamines and a leading global producer of low emission polyurethane catalysts. We are the only producer and largest supplier of propylene carbonate and ethylene carbonate in North America.
These facilities receive aniline, which is a primary material used in the production of MDI, from our facilities located in Geismar, Louisiana; Wilton, U.K.; and Caojing, China. We believe that this relative scale and product integration of our large facilities is necessary to provide cost competitiveness in MDI production.
These facilities receive aniline, which is a primary material used in the production of MDI, from our facilities and third-party suppliers. We believe that this relative scale and product integration of our large facilities is necessary to provide cost competitiveness in MDI production. At our Geismar, Rotterdam and Caojing facilities we utilize sophisticated proprietary technology to produce MDI.
In our maleic anhydride technology licensing market, our primary competitor is Conser. We compete primarily on the basis of technological performance and service. Advanced Materials General Our Advanced Materials segment is a leading global manufacturer and marketer of technologically-advanced epoxy, phenoxy, acrylic, polyurethane, mercaptan and acrylonitrile butadiene-based polymer products.
We compete primarily based on technological performance and service. Advanced Materials General Our Advanced Materials segment is a leading global manufacturer and marketer of technologically-advanced epoxy, phenoxy, acrylic, polyurethane, mercaptan and acrylonitrile butadiene-based polymer products as well as carbon nanomaterials.
It is uncertain at this time whether the rules, as proposed, will be adopted and go into effect. We are already managing and reporting GHG emissions, to varying degrees, as required by law for our sites in locations subject to U.S. federal and state requirements, Kyoto Protocol obligations and/or ETS requirements.
We are already managing and reporting GHG emissions, to varying degrees, as required by law for our sites in locations subject to U.S. federal and state requirements, Kyoto Protocol obligations, and/or ETS requirements.
Our key maleic anhydride customers include Andercol, Chevron Oronite, Ingevity, Lubrizol, MFG Chemical, Polynt-Reichhold and Primary Products. Sales and Marketing We sell approximately 250 products to over 950 customers globally through our regional sales and marketing organizations, which have extensive market knowledge, considerable chemical industry experience and well-established customer relationships.
Sales and Marketing We sell approximately 250 products to over 850 customers globally through our regional sales and marketing organizations, which have extensive market knowledge, considerable chemical industry experience and well-established customer relationships.
Significant expansions of our existing facilities or construction of new facilities may be subject to the Clean Air Act’s (the “CAA”) requirements for pollutants regulated under the Prevention of Significant Deterioration and Title V programs. Some of our facilities are also subject to the EPA’s Mandatory Reporting of Greenhouse Gases rule, and any further regulation may increase our operational costs.
Significant expansions of our existing facilities or construction of new facilities may be subject to the federal Clean Air Act’s (the “CAA”) requirements for pollutants regulated under the Prevention of Significant Deterioration and Title V programs.
We produce a variety of products at 10 manufacturing facilities in North America, Europe, the Middle East and Asia. 6 Table of Contents Products and Markets Amines. Amines are a family of intermediate chemicals that are produced by reacting ammonia, or an alkylamine, with various ethylene and propylene derivatives.
We believe we are the largest producer of maleic anhydride outside of China and the second largest globally with three production facilities in North America and Europe. 6 Table of Contents Products and Markets Amines. Amines are a family of intermediate chemicals that are produced by reacting ammonia, or an alkylamine, with various ethylene and propylene derivatives.
We compete primarily on the basis of product performance, new product innovation and, to a lesser extent, on the basis of price. In our maleic anhydride market, we compete primarily on the basis of price, customer service, technical support and logistics management. Our competitors include AOC, Bartek, INEOS and Lanxess.
We compete primarily based on product performance, new product innovation and price. In our maleic anhydride market, we compete primarily based on price, customer service, technical support, reliability of supply and logistics management. Our competitors include AOC, Bartek, INEOS, Lanxess and Polynt-Reichhold. In our maleic anhydride technology licensing market, our primary competitor is Conser.
(2) Represents our approximately 78% share of capacity under our consolidated Rubicon LLC manufacturing joint venture with Lanxess AG. (3) Primarily consumed internally in the production of MDI. Key Joint Ventures Rubicon Joint Venture. Lanxess AG (“Lanxess”) is our joint venture partner in Rubicon LLC (“Rubicon”), which owns aniline, nitrobenzene and DPA manufacturing facilities in Geismar, Louisiana.
Lanxess AG (“Lanxess”) is our joint venture partner in Rubicon LLC (“Rubicon”), which owns aniline, nitrobenzene and DPA manufacturing facilities in Geismar, Louisiana. We are entitled to approximately 78% of the nitrobenzene and aniline production capacity of Rubicon, and Lanxess is entitled to 100% of the DPA production.
The maleic anhydride-based route to BDO manufacture is currently the preferred process technology and is favored over the other routes, which utilize PO, butadiene or acetylene as feedstocks. As a result, the growth in demand for BDO supports growing demand for our maleic anhydride technology.
We believe that our process is superior in the areas of feedstock and energy efficiency and solvent recovery. The maleic anhydride-based route to BDO manufacture is currently the preferred process technology and is favored over the other routes, which utilize PO, butadiene or acetylene as feedstocks.
TPU is a high-quality, fully formulated thermal plastic derived from the reaction of MDI or an aliphatic isocyanate with polyols to produce unique qualities such as durability, flexibility, strength, abrasion-resistance, shock absorbency and chemical resistance. We can tailor the performance characteristics of TPU to help meet the specific requirements of our customers.
Demand for specialty polyols has been growing at approximately the same rate at which MDI consumption has grown. TPU. TPU is a high-quality, fully formulated thermal plastic derived from the reaction of MDI or an aliphatic isocyanate with polyols to produce unique qualities such as durability, flexibility, strength, abrasion-resistance, shock absorbency and chemical resistance.
Risk Factors,” “Note 2. Summary of Significant Accounting Policies—Environmental Expenditures” to our consolidated financial statements and “Note 21.
Risk Factors” and “Note 2. Summary of Significant Accounting Policies—Environmental Expenditures” and “Note 21.
TPU is used in injection molding and small components for the automotive and footwear industries. It is also extruded into films for apparel, wires and cables for industrial use and in a wide variety of applications in the coatings, adhesives, sealants and elastomers markets. Other.
It is also extruded into films for apparel, wires and cables for industrial use and in a wide variety of applications in the coatings, adhesives, sealants and elastomers markets. Other. Other sales consist primarily of aniline, benzene, nitrobenzene and other co-products, which all are used primarily to manufacture MDI.
In China, the Chinese PO/MTBE joint venture supplies PO into our downstream China business. The strategic supply of PO gives us access to competitively priced PO and the opportunity to develop polyols that enhance our range of MDI products. Competition Our major competitors in the polyurethane chemicals market include BASF, Covestro, Dow, Lubrizol and Wanhua Chemical Group.
The primary raw material used in the production of polyols is PO, which we purchase in North America and Europe. The Chinese PO/MTBE joint venture supplies PO into our downstream China business. The strategic supply of PO gives us access to competitively priced PO and the opportunity to develop polyols that enhance our range of MDI products.
These technical service professionals interact closely with our marketing managers and business leadership teams to help guide future offerings and market approach strategies. In addition to our focused direct sales efforts, we maintain an extensive global network of distributors and agents that also sell our products.
In addition to our focused direct sales efforts, we maintain an extensive global network of distributors and agents that also sell our products.
We own a 49% interest in the joint venture and account for our interest in the joint venture as an equity method investment. In May 2020, we rebranded our leading spray polyurethane foam (“SPF”) business as Huntsman Building Solutions (“HBS”).
We own a 49% interest in the joint venture and account for our interest in the joint venture as an equity method investment. Huntsman Building Solutions (“HBS”) is a leading North American manufacturer and distributor of SPF insulation systems for residential and commercial applications.
Most other producers utilize a reductive amination process, which yields a light slate of ethyleneamines. We believe our heavier slate of homologues allows access to a greater range of markets. Our amines are used in a wide variety of mainly industrial applications, including composites, paints and coatings, polyurethane insulation and flexible foams, fuel and lubricant additives, and solvents.
Most other producers utilize a reductive amination process, which yields a light slate of ethyleneamines. We believe our heavier slate of homologues allows access to a greater range of markets.
These facilities have a competitive cost base and use modern manufacturing units that allow for flexibility in production capabilities and technical innovation. A number of our facilities are located within large integrated petrochemical manufacturing complexes.
Our global production capacity of amines is approximately 0.9 billion pounds and our North America and EAME production capacity of maleic anhydride is approximately 0.6 billion pounds. Our amines facilities are located globally. These facilities have a competitive cost base and use modern manufacturing units that allow for flexibility in production capabilities and technical innovation.
We believe that MDI and formulated MDI systems will continue to substitute for alternative materials, such as fiberglass in insulation, phenol formaldehyde in wood binders and TDI in automotive and furniture. Specialty cushioning and insulation applications, thermoplastic polyurethanes and adhesives and coatings will further contribute to the continued growth of MDI.
MDI offers key products benefits of energy efficiency, comfort and durability aligned with these megatrends. We believe that MDI and formulated MDI systems will continue to substitute for alternative materials, such as fiberglass in insulation, phenol formaldehyde in wood binders and TDI in automotive and furniture.
More significantly, the EU GHG Emissions Trading System (“ETS”), established pursuant to the Kyoto Protocol to reduce GHG emissions in the EU, continues in its fourth phase. The European Commission established a market stability reserve to address a surplus of allowances and improve the system’s resilience that started operating in 2019.
More significantly, the EU GHG Emissions Trading System (“ETS”), established pursuant to the Kyoto Protocol to reduce GHG emissions in the EU, continues in its fourth phase.
We provide extensive pre- and post-sales technical service support to our customers where our technical service professionals work closely with our research and development functions to tailor our product offerings to meet our customers unique and changing requirements.
We provide extensive pre- and post-sales technical service support to our customers. Our research and development function creates solutions to meet our customers unique and changing requirements. These technical professionals interact closely with our marketing managers and business leadership teams to help guide future offerings and market approach strategies.
We believe that MDI and formulated MDI systems, which combine MDI and polyols, will continue to grow at approximately double the rate of global GDP driven by the mega trends of energy management, food preservation, demographics and urbanization/transportation. MDI offers key products benefits of energy efficiency, comfort and durability aligned with these megatrends.
MDI can be used to make polyurethanes with a broad range of properties and can therefore be used in a wide range of applications. We believe that MDI and formulated MDI systems, which combine MDI and polyols, will continue to grow at a multiple of global GDP driven by the megatrends of energy management, food preservation, demographics and urbanization/transportation.
In July 2021, the European Commission proposed legislation to increase the greenhouse gas emission reduction target to at least 55% and the renewable energy target to 40%.
In July 2021, the EC proposed legislation to increase its GHG emission reduction target to at least 55% and the renewable energy target to 40%. In January 2024, the EC communicated support for a 90% reduction in GHG emissions by 2040.
Product group Applications Maleic anhydride Boat hulls, automotive, construction, lubricant and fuel additives, countertops, agrochemicals, paper and food additives Maleic anhydride and other technology licensing Maleic anhydride and 1-4 butanediol (BDO) and other process technologies Maleic anhydride is produced by oxidizing either benzene or normal butane through the use of a catalyst.
Product group Applications Maleic anhydride Construction, lubricant additives, marine, automotive, agrochemicals, paper and food additives Maleic anhydride is produced by oxidizing either benzene or normal butane using a catalyst. Our maleic anhydride technology is a proprietary fixed bed butane-based process with a solvent recovery and refining system.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeWe may therefore incur additional costs and expenditures beyond those currently anticipated to address all such known and unknown situations under existing and future EHS laws. RISKS RELATED TO INDEBTEDNESS Changes in our credit ratings could increase our borrowing costs or negatively impact our ability to access debt capital markets.
Biggest changeRISKS RELATED TO INDEBTEDNESS Changes in our credit ratings could increase our borrowing costs or negatively impact our ability to access debt capital markets. We rely on access to the debt capital markets and other short-term borrowings to finance our operations. The major rating agencies routinely evaluate our credit profile and assign debt ratings.
In addition, a number of countries where we operate, including the U.K., have adopted rules to conform chemical labeling in accordance with the globally harmonized system. Many of these foreign regulatory regimes are in the process of a multi-year implementation period for these rules. Additional new laws and regulations may be enacted or adopted by various regulatory agencies globally.
In addition, a number of countries where we operate, including the U.K., have adopted rules to conform chemical labeling in accordance with a globally harmonized system. Many of these foreign regulatory regimes are in the process of a multi-year implementation period for these rules. Additional new laws and regulations may be enacted or adopted by various regulatory agencies globally.
President Biden publicly announced the Global Methane Pledge, a pact that aims to reduce global methane emissions at least 30% below 2020 levels by 2030. Since its formal launch at the United Nations Climate Change Conference (COP26), over 100 countries have joined the pledge.
President Biden publicly announced the Global Methane Pledge, a pact that aims to reduce global methane emissions at least 30% below 2020 levels by 2030. Since its formal launch at the United Nations Climate Change Conference (COP26), over 100 countries have joined the Global Methane Pledge.
These laws include the regulation of chemical substances and inventories under the Toxic Substances Control Act (“TSCA”) in the U.S. and the Registration, Evaluation and Authorization of Chemicals (“REACH”) and the Classification, Labeling and Packaging of substances and mixtures (“CLP”) regulations in Europe. Analogous regimes exist in other parts of the world, including China, South Korea, and Taiwan.
These laws include the regulation of chemical substances and inventories under the Toxic Substances Control Act (“TSCA”) in the U.S. and the Registration, Evaluation and Authorization of Chemicals (“REACH”) and the Classification, Labeling and Packaging of substances and mixtures (“CLP”) regulations in Europe. Analogous regulatory regimes exist in other parts of the world, including China, South Korea and Taiwan.
Current employees have, and former employees may have, access to a significant amount of information regarding our operations which could be disclosed to our competitors or otherwise used to harm us. Moreover, our operations in certain locations, such as China, may be particularly vulnerable to security attacks or other problems.
In addition, current employees have, and former employees may have, access to a significant amount of information regarding our operations which could be disclosed to our competitors or otherwise used to harm us. Moreover, our operations in certain locations, such as China, may be particularly vulnerable to security attacks or other problems.
In addition, certain of our competitors in various countries in which we do business, including China, may be owned by or affiliated with members of local governments and political entities. 16 Table of Contents These competitors may get special treatment with respect to regulatory compliance and product registration, while certain of our products, including those based on new technologies, may be delayed or even prevented from entering into the local market.
In addition, certain of our competitors in various countries in which we do business, including China, may be owned by or affiliated with members of local governments and political entities. 15 Table of Contents These competitors may get special treatment with respect to regulatory compliance and product registration, while certain of our products, including those based on new technologies, may be delayed or even prevented from entering into the local market.
Our ability to effectively manage our business depends on the security, reliability and capacity of these systems. Our technology systems or the technology systems of third parties on which we rely, are vulnerable to disruption from circumstances beyond our control including fire, natural disasters, power outages, system failures, security breaches, espionage, cyber-attacks, viruses, theft and inadvertent release of information.
Our ability to effectively manage our business depends on the security, reliability and capacity of these systems. Our technology systems or the technology systems of third parties on which we rely, are vulnerable to disruption from circumstances beyond our control including fire, natural disasters, power outages, system failures, security breaches, espionage, viruses, theft and inadvertent release of information.
For more information, see “—Item 3. Legal Proceedings” below. 17 Table of Contents Our operations, financial condition and liquidity could be adversely affected by legal claims against us, including antitrust claims. We face risks arising from various legal actions, including matters relating to antitrust, product liability, intellectual property and environmental claims.
For more information, see “—Item 3. Legal Proceedings” below. 16 Table of Contents Our operations, financial condition and liquidity could be adversely affected by legal claims against us, including antitrust claims. We face risks arising from various legal actions, including matters relating to antitrust, product liability, intellectual property and environmental claims.
We may therefore incur additional costs and expenditures beyond those currently anticipated to address all such known and unknown situations under existing and future EHS laws. 19 Table of Contents Regulatory requirements to reduce GHG or other emissions could have an adverse effect on our results of operations.
We may therefore incur additional costs and expenditures beyond those currently anticipated to address all such known and unknown situations under existing and future EHS laws. 18 Table of Contents Regulatory requirements to reduce GHG or other emissions could have an adverse effect on our results of operations.
In April 2020, EPA finalized revisions to its Chemical Data Reporting rule under TSCA, which changes reporting requirements. The EPA has also released its framework for approving new chemicals and new uses of existing chemicals. Under the framework, a new chemical or use presents an unreasonable risk if it exceeds set standards.
In April 2020, EPA finalized revisions to its Chemical Data Reporting rule under TSCA, which changes reporting requirements. The EPA has also released its framework for approving new chemicals and new uses of existing chemicals. Under the framework, a new chemical or use presents an unreasonable risk if it exceeds established standards.
Any such disruption to these Information technology systems could disrupt our operations or result in the disclosure of proprietary information about our business or confidential information concerning our customers or employees which could result in negative publicity/brand damage, violation of privacy laws, potential liability, including litigation/investigation/remediation or other legal actions against us or the imposition of penalties, fines, fees or liabilities, which may not be covered by our insurance policies.
Any disruption to our information technology systems could disrupt our operations or result in the disclosure of proprietary information about our business or confidential information concerning our customers or employees which could result in negative publicity/brand damage, violation of privacy laws, potential liability, including litigation/investigation/remediation or other legal actions against us or the imposition of penalties, fines, fees or liabilities, which may not be covered adequately by our insurance policies.
If our intellectual property rights cannot be enforced or our trade secrets become known to our competitors, our ability to compete may be adversely affected. Proprietary protection of our processes, apparatuses and other technology is important to our business.
Our business is dependent on our intellectual property; if our intellectual property rights cannot be enforced or our trade secrets become known to our competitors, our ability to compete may be adversely affected. Proprietary protection of our processes, apparatuses and other technology is important to our business.
Such a finding could result in either the issuance of rules restricting the use of the chemical being evaluated or in the need for additional testing. The costs of compliance with any new laws or regulations cannot be estimated until the manner in which they will be implemented has been more precisely defined.
Such a finding could result in either the issuance of rules restricting the use of the chemical being evaluated or in the need for additional testing. The costs of compliance with any new laws or regulations cannot be estimated until the way they will be implemented has been more precisely defined.
Conflicts, military actions, terrorist attacks, political events, public health crises and general instability, along with increased security regulations related to our industry, could adversely affect our business. Conflicts, military actions, terrorist attacks, political events and public health crises have precipitated economic instability and turmoil in international commerce and the global economy.
Conflicts, military actions, terrorist attacks, political events, public health crises, changes in regulatory regimes and general instability, along with increased security regulations related to our industry, could adversely affect our business. Conflicts, military actions, terrorist attacks, political events and public health crises have precipitated economic instability and turmoil in international commerce and the global economy.
These various regulations and agreements may result in increased costs to purchased energy, additional capital costs for installation or modification of associated equipment, and additional costs associated directly with such emissions (such as cap and trade systems or carbon taxes), which are primarily related to energy use.
These various regulations and agreements also may result in increased costs to purchase energy, additional capital costs for installation or modification of associated equipment, and additional costs associated directly with such emissions (such as cap and trade systems or carbon taxes), which are primarily related to energy use.
In addition, we could be required to expend significant additional efforts to respond to information technology issues or to protect against threatened or actual security breaches. Finally, data privacy is subject to frequently changing rules and regulations in countries where we do business.
In addition, we could be required to expend significant additional efforts to respond to information technology issues or to protect against threatened or actual cyberattacks. Finally, data privacy is subject to frequently changing rules and regulations in countries where we do business.
We are subject to risks relating to our information technology systems, and any technology disruption or cybersecurity incident could negatively affect our operations. We rely on information technology systems across our operations, including for management, supply chain and financial information and various other processes and transactions.
We are subject to risks relating to our information technology systems, and any technology disruption or cyberattack could negatively affect our operations. We rely on information technology systems across our operations, including for management, supply chain and financial information and various other processes and transactions.
For example, a number of governments have instituted regulations attempting to increase the security of chemical plants and the transportation of hazardous chemicals, which could result in higher operating costs and could have a material adverse effect on our financial condition and liquidity. 18 Table of Contents Our pension and postretirement benefit plan obligations are currently underfunded, and under certain circumstances we may have to significantly increase the level of cash funding to some or all of these plans, which would reduce the cash available for our business.
For example, a number of governments have proposed or instituted regulations attempting to increase the security of chemical plants and the transportation of hazardous chemicals, and in certain regions, putting pressure on manufacturing industries, which could result in higher operating costs and could have a material adverse effect on our financial condition and liquidity. 17 Table of Contents Our pension and postretirement benefit plan obligations are currently underfunded, and under certain circumstances we may have to significantly increase the level of cash funding to some or all of these plans, which would reduce the cash available for our business.
Actual or alleged violations of EHS laws or permit requirements could result in restrictions or prohibitions on plant operations and substantial civil or criminal sanctions, as well as, under some EHS laws, the assessment of strict liability and/or joint and several liability.
Actual or alleged violations of EHS laws or permit requirements could result in restrictions or prohibitions on plant operations and substantial civil or criminal sanctions and under certain EHS laws, the assessment of strict liability and/or joint and several liability.
A significant adverse change in a customer relationship or in a customer’s financial position could cause us to limit or discontinue business with that customer, require us to assume more credit risk relating to that customer’s receivables or limit our ability to collect accounts receivable from that customer. Our business is dependent on our intellectual property.
A significant adverse change in a customer relationship or in a customer’s financial position could cause us to limit or discontinue business with that customer, require us to assume more credit risk relating to that customer’s receivables or limit our ability to collect accounts receivable from that customer.
While we have invested and will continue to invest in technology security initiatives and disaster recovery plans, we may not be able to implement measures that will protect against all the significant risks to our information technology systems.
While we have invested and will continue to invest in technology security initiatives and disaster recovery plans, we may not be able to implement measures sufficient to prevent cyberattacks or that will protect against other significant risks to our information technology systems.
RISKS RELATED TO OUR BUSINESS AND OPERATIONS Our industry is affected by global economic factors, including risks associated with volatile economic conditions, and current economic conditions have had, and may continue to have, significant effects on our customers and suppliers and may in the future have a material adverse effect on our business, operating results, financial condition and stock price.
RISKS RELATED TO OUR BUSINESS AND OPERATIONS Our industry is affected by global economic factors, including risks associated with volatile economic conditions, and the economic environment, inflation, elevated interest rates, recessions or prolonged periods of slow economic growth and global instability have had, and may continue to have, significant effects on our customers and suppliers and have had, and may in the future continue to have, a material adverse effect on our business, operating results, financial condition and stock price.
For example, the EU adopted a regulation that became effective in May 2018, the General Data Protection Regulation (“GDPR”), which requires companies to meet regulations regarding the handling of personal data. Our failure to successfully comply with GDPR requirements could result in substantial fines or penalties and legal liability which could tarnish our reputation.
For example, the General Data Protection Regulation (“GDPR”) requires companies to meet regulations regarding the handling of personal data. Our failure to successfully comply with GDPR requirements could result in substantial fines or penalties and legal liability, which could tarnish our reputation. Our operations involve risks that may increase our operating costs, which could reduce our profitability.
Our operations involve risks that may increase our operating costs, which could reduce our profitability. Although we take precautions to enhance the safety of our operations and minimize the risk of disruptions, our operations are subject to hazards inherent in the manufacturing and marketing of chemical and other products.
Although we take precautions to enhance the safety of our operations and minimize the risk of disruptions, our operations are subject to hazards inherent in the manufacturing and marketing of chemical and other products.
Economic conditions or changes in tax laws may dictate the continued imposition of current valuation allowances and, potentially, the establishment of new valuation allowances. While significant valuation allowances remain, our effective tax rate will likely continue to experience significant fluctuations. Furthermore, certain foreign jurisdictions may take actions to delay our ability to collect value-added tax refunds.
Changes in valuation allowances have resulted in material fluctuations in our effective tax rate. Economic conditions or changes in tax laws may dictate the continued imposition of current valuation allowances and, potentially, the establishment of new valuation allowances. While significant valuation allowances remain, our effective tax rate will likely continue to experience significant fluctuations.
The EU also regulates GHGs under the EU ETS and China has established its own country-wide GHG cap and trade program. In the U.S., the Biden Administration has announced plans to enact new rules to address power plant GHG emissions, but a proposed rule has not yet been released.
The EU also regulates GHGs under the EU ETS and China has established its own nationwide GHG cap and trade program. In the U.S., the Biden Administration has proposed new rules to address power plant GHG emissions pursuant to the CAA.
Moreover, if any of our current or future competitors develops proprietary technology that enables them to produce products at a significantly lower cost, our technology could be rendered uneconomical or obsolete.
Moreover, if any of our current or future competitors develops proprietary technology that enables them to produce products at a significantly lower cost, our technology could be rendered uneconomical or obsolete. We cannot predict whether technological innovations will, in the future, result in a lower demand for our products or affect the competitiveness of our business.
The prices for raw materials and energy generally follow price trends of, and vary with market conditions for, crude oil and natural gas feedstocks, which are highly volatile and cyclical.
We purchase a substantial portion of our raw materials and energy from third-party suppliers and their costs represent a substantial portion of our operating expenses. The prices for raw materials and energy generally follow price trends of, and vary with market conditions for, crude oil and natural gas feedstocks, which are highly volatile and cyclical.
We have completed a number of acquisitions, and we expect to continue to acquire additional businesses and enter into joint ventures as part of our business strategy.
We may have difficulties integrating acquired businesses and as a result, our business, results of operations and/or financial condition may be materially adversely affected. We have completed a number of acquisitions, and we expect to continue to acquire additional businesses and enter into joint ventures as part of our business strategy.
Failure to maintain an investment grade rating would adversely affect our borrowing costs and could adversely affect our access to the debt capital markets. Any limitation on our ability to continue to raise money in the debt capital markets could have a substantial negative effect on our liquidity.
Any limitation on our ability to continue to raise money in the debt capital markets could have a substantial negative effect on our liquidity.
While we are engaged in a range of research and development programs to develop new products and processes, to improve and refine existing products and processes, and to develop new applications for existing products, the failure to develop new products, processes or applications could make us less competitive.
While we are engaged in a range of research and development programs to develop new products and processes, to improve and refine existing products and processes, and to develop new applications or alternative uses for existing products, the failure to develop new products, processes or applications or the failure to keep pace with evolving technological innovations in our end-use markets, could make us less competitive and have an adverse impact on our financial results.
With respect to our foreign pension and postretirement benefit plans, the effects of underfunding depend on the country in which the pension and postretirement benefit plan is established.
In the event our tax-qualified pension plans are terminated by the PBGC, we could be liable to the PBGC for the entire amount of the underfunding. With respect to our foreign pension and postretirement benefit plans, the effects of underfunding depend on the country in which the pension and postretirement benefit plan is established.
These valuation allowances result from analysis of positive and negative evidence supporting the realization of tax benefits. Negative evidence includes a cumulative history of pre-tax operating losses in specific tax jurisdictions. Changes in valuation allowances have resulted in material fluctuations in our effective tax rate.
GAAP”) have required us to place valuation allowances against some of our net operating losses and other deferred tax assets in certain tax jurisdictions. These valuation allowances result from analysis of positive and negative evidence supporting the realization of tax benefits. Negative evidence includes a cumulative history of pre-tax operating losses in specific tax jurisdictions.
Therefore, the final scope of any U.S. regulation of GHG emissions is uncertain at this time. Such rules and agreements may affect the long-term price and supply of electricity and natural gas and demand for products that contribute to energy efficiency and renewable energy.
These rules and agreements may affect the long-term price and supply of electricity and natural gas and demand for products that contribute to energy efficiency and renewable energy.
Consistent with past practices, we may from time to time seek to repurchase or redeem our equity and debt securities in open market purchases, accelerated repurchase programs, privately negotiated transactions, tender offers, partial or full calls for redemption or otherwise.
We may from time to time seek to repurchase or redeem our equity and debt securities in open market purchases, accelerated repurchase programs, privately negotiated transactions, tender offers, partial or full calls for redemption or otherwise. Any such repurchases or redemptions and the timing and amount thereof would depend on prevailing market conditions, liquidity requirements, contractual restrictions and other factors.
We may not always be able to increase our selling prices to offset the impact of any higher production costs or reduced production levels, which could reduce our earnings and decrease our liquidity. 14 Table of Contents Our results of operations and financial condition have been, and may in the future be, adversely impacted by COVID-19, and the duration and extent of such impacts remain uncertain.
We may not always be able to increase our selling prices to offset the impact of any higher production costs or reduced production levels, which could reduce our earnings and decrease our liquidity. 14 Table of Contents Our efforts to grow and transform our businesses may require significant investments; if our strategies are unsuccessful, our business, results of operations and/or financial condition may be materially adversely affected.
In addition, we may fail to fully achieve the savings or growth projected for current or future initiatives notwithstanding the expenditure of substantial resources in pursuit thereof. We may have difficulties integrating acquired businesses and as a result, our business, results of operations and/or financial condition may be materially adversely affected.
In addition, we may fail to fully achieve the savings or growth projected for current or future initiatives notwithstanding the expenditure of substantial resources in pursuit thereof.
Such countries and organizations are also actively considering changes to existing tax laws or have proposed new tax laws that could increase our tax obligations. In addition, generally accepted accounting principles in the U.S. (“GAAP” or “U.S. GAAP”) have required us to place valuation allowances against our net operating losses and other deferred tax assets in certain tax jurisdictions.
Such countries and organizations are also actively considering changes to existing tax laws or have proposed new tax laws that could increase our tax obligations. For such laws that have been enacted, we anticipate the impact will be immaterial to our financial statements. In addition, generally accepted accounting principles (“GAAP” or “U.S.
Significant price volatility or interruptions in supply of our raw materials and energy may result in increased costs that we may be unable to pass on to our customers, which could reduce our profitability. We purchase a substantial portion of our raw materials and energy from third-party suppliers and their costs represent a substantial portion of our operating expenses.
Furthermore, certain foreign jurisdictions may take actions to delay our ability to collect value-added tax refunds. Significant price volatility or interruptions in supply of our raw materials and energy may result in increased costs that we may be unable to pass on to our customers, which could reduce our profitability.
We rely on access to the debt capital markets and other short-term borrowings to finance our operations. The major rating agencies routinely evaluate our credit profile and assign debt ratings. This evaluation is based on a number of factors, which include weighing our financial strength versus business, industry and financial risk.
This evaluation is based on a number of factors, which include weighing our financial strength versus business, industry and financial risk. A decrease in the ratings assigned to us by ratings agencies may negatively impact our access to the debt capital markets and increase our borrowing costs.
Our financial results are substantially dependent on overall economic conditions in the U.S., Europe and Asia. Declining economic conditions, or negative perceptions about economic conditions, could result in a substantial decrease in demand for our products and could adversely affect our business.
Our financial results are substantially dependent on overall economic conditions in the U.S., Europe and Asia.
A decrease in the ratings assigned to us by ratings agencies may negatively impact our access to the debt capital markets and increase our borrowing costs. The addition of more debt to our capital structure could also impact our credit ratings.
The addition of more debt to our capital structure could also impact our credit ratings. Failure to maintain an investment grade rating would adversely affect our borrowing costs and could adversely affect our access to the debt capital markets.
Removed
In particular, the impacts of COVID-19 have disrupted nearly every aspect of the global supply chain, and the resulting increases in energy costs and scarcity of raw materials has increased the cost of operating our business.
Added
Declining economic conditions, including adverse factors such as inflation, rising and elevated interest rates, supply chain disruptions and geopolitical conflicts, or negative perceptions about future economic conditions, have resulted in, and in the future could result in, a substantial decrease in demand for our products and could adversely affect our business.
Removed
COVID-19 has adversely affected the global economy and financial markets and has impacted our operations and financial results. In particular, certain of our key end markets, including aerospace, have been disproportionally impacted by the effects of COVID-19.
Added
In addition, a prolonged or substantial economic downturn could have material unforeseen consequences, and may result in increased indebtedness or substantially lower adjusted EBITDA, any of which could have a material adverse effect on our business and our ability to comply with the financial covenants in our debt agreements.
Removed
The extent to which COVID-19 may continue to adversely impact our business depends on future developments, including: The extent to which COVID-19 may continue to adversely impact our business depends on future developments, including: ● the duration, scope, severity and geographic spread of COVID-19 and its variants, including the extent of any future resurgences; ● governmental, business and individual actions that have been and continue to be taken in response to COVID-19, including social distancing, work-at-home, stay-at-home and shelter-in-place orders and shutdowns, travel restrictions and quarantines; ● the effects of COVID-19 on our customers, suppliers, supply chain and other business partners; ● our ability to provide our products and protect the health and well-being of our employees; ● our ability to increase prices and pass along to customers the additional cost we have experienced since the beginning of the COVID-19 pandemic; ● business disruptions caused by actual or potential plant, workplace and office closures, and an increased reliance on employees working from home, disruptions to or delays in ongoing product development, operations, staffing shortages, travel limitations, employee health issues, cyber security and data accessibility, or communication or mass transit disruptions, any of which could adversely impact our business operations or delay necessary interactions with local regulators, manufacturing sites and other important agencies and contractors; ● the risk that we could be exposed to liability, negative publicity or reputational harm related to any incidents of actual or perceived transmission of COVID-19 among employees at our facilities; ● the ability of our customers to pay for our products; ● the ability of our suppliers to provide raw materials; ● the impacts of COVID-19 on the financial markets and economic activity generally; ● our ability to access usual sources of liquidity on reasonable terms; and ● our ability to comply with the financial covenants in our debt agreements if a material and prolonged economic downturn results in increased indebtedness or substantially lower adjusted EBITDA.
Added
Finally, we may face increased competition due to the rapid development of digital, artificial intelligence and machine learning technologies. Failure to early adopt and incorporate such technologies to improve productivity and manufacturing technology may put us at a long-term competitive disadvantage.
Removed
Any failure to complete the proposed sale of our Textile Effects Business could materially adversely impact the market price of our common stock as well as our business, financial condition and results of operations.
Added
To date, we have not had a cyberattack that has had a material impact on our financial condition, results of operations or liquidity.
Removed
On August 9, 2022, we entered into a definitive agreement to sell our Textile Effects Business to Archroma for a purchase price of $593 million in cash plus the assumption of underfunded pension liabilities, and we expect the net after tax cash proceeds to be approximately $540 million before fees and subject to certain customary purchase price adjustments as set forth in the purchase agreement.
Added
These rules, if adopted, would impose stringent performance standards on new power plants fueled by natural gas and strict limits on GHG emissions from existing fossil fuel-fired generators, including those powered by natural gas, coal, and oil. Unless and until this proposal is finalized, however, the final scope of any U.S. regulation of GHG emissions will be uncertain.
Removed
Completion of the proposed sale is subject to our and Archroma’s performance under the purchase agreement. Unanticipated developments could delay or prevent the transaction from closing, which could cause our common stock to experience negative reactions from the financial markets.
Added
Such transactions could negatively affect our liquidity. We may fail to meet our publicly announced guidance or other expectations about our business, which could cause our stock price to have unanticipated movements. We provide from time to time guidance regarding our expected financial performance.
Removed
In addition, our ongoing businesses may be adversely affected, and we may be subject to certain risks and consequences, including, but not limited to, the following: ● execution of the proposed sale has required, and will continue to require, significant time and attention from management, which may postpone the execution of other initiatives that may have been beneficial to us; ● if the proposed sale is not completed, any litigation or judicial actions that may be instituted by or against us, our Board of Directors and others relating to the proposed sale or any settlement of such litigation or judicial action and any associated costs and expenses; and ● whether or not the proposed sale is completed, we may be responsible for certain costs and expenses, such as legal, accounting and other professional fees, which may be significant.
Added
Correctly identifying key factors affecting business conditions and predicting future events is inherently an uncertain process, and our guidance may not ultimately be accurate. Our guidance is based on certain assumptions, such as those relating to anticipated sales volumes, average selling prices, raw material costs and anticipated cost reductions.
Removed
Any of these factors could have a material adverse effect on our financial condition, results of operations, cash flows and the price of our common stock.​​ 15 Our efforts to grow and transform our businesses may require significant investments; if our strategies are unsuccessful, our business, results of operations and/or financial condition may be materially adversely affected.
Added
If our guidance varies from actual results, the market value of our common stock could have unanticipated movements.
Removed
In the event our tax-qualified pension plans are terminated by the PBGC, we could be liable to the PBGC for the entire amount of the underfunding and, under certain circumstances, the liability could be senior to our notes.
Removed
We could incur significant expenditures in order to comply with existing or future EHS laws. Capital expenditures and costs relating to EHS matters will be subject to evolving regulatory requirements and will depend on the timing of the promulgation and enforcement of specific standards which impose requirements on our operations.
Removed
Capital expenditures and costs beyond those currently anticipated may therefore be required under existing or future EHS laws.
Removed
Furthermore, we may be liable for the costs of investigating and cleaning up environmental contamination on or from our properties or at off-site locations where we disposed of or arranged for the disposal or treatment of hazardous materials or from disposal activities that pre-dated our purchase of our businesses.
Removed
Any such repurchases or redemptions and the timing and amount thereof would depend on prevailing market conditions, liquidity requirements, contractual restrictions and other factors. Such transactions could negatively affect our liquidity.

Item 2. Properties

Properties — owned and leased real estate

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Biggest change(1) Various Administrative Offices Caojing, China Polyurethanes MDI Finishing Facilities Caojing, China (2) Polyurethanes Precursor MDI Manufacturing Facility Auburn Hills, Michigan (1) Polyurethanes Polyurethane Research Facility Arlington, Texas Polyurethanes Polyurethane Systems House Azeglio, Italy Polyurethanes Polyurethane Systems House Boisbriand, Canada Polyurethanes Polyurethane Systems House Cartagena, Colombia Polyurethanes Polyurethane Systems House Castelfranco Emilia, Italy Polyurethanes Polyurethane Systems House Dammam, Saudi Arabia (3) Polyurethanes Polyurethane Systems House Deer Park, Australia (1) Polyurethanes Polyurethane Systems House Dubai, United Arab Emirates Polyurethanes Polyurethane Systems House Gandaria, Jakarta, Indonesia Polyurethanes Polyurethane Systems House Georgsmarienhütte, Germany Polyurethanes Polyurethane Systems House Istanbul, Turkey Polyurethanes Polyurethane Systems House King’s Lynn, U.K.
Biggest changeLocation Business segment Description of facility The Woodlands, Texas (1) Various Executive Offices, Operating Headquarters, Global Technology Center and Shared Services Center Kraków, Poland (1) Various Global Business Services Center Kuala Lumpur, Malaysia (1) Various Global Business Services Center San Jose, Costa Rica (1) Various Global Business Services Center Mumbai, India (1) Various Technology Center, Administrative Offices, Labs and Shared Services Center Caojing, China Polyurethanes MDI Finishing Facilities Caojing, China Polyurethanes Precursor MDI Manufacturing Facility Auburn Hills, Michigan (1) Polyurethanes Polyurethane Research Facility Arlington, Texas Polyurethanes Polyurethane Systems House Azeglio, Italy Polyurethanes Polyurethane Systems House Boisbriand, Canada Polyurethanes Polyurethane Systems House Cartagena, Colombia Polyurethanes Polyurethane Systems House Castelfranco Emilia, Italy Polyurethanes Polyurethane Systems House Dammam, Saudi Arabia (2) Polyurethanes Polyurethane Systems House Deer Park, Australia (1) Polyurethanes Polyurethane Systems House Dubai, United Arab Emirates Polyurethanes Polyurethane Systems House Georgsmarienhütte, Germany Polyurethanes Polyurethane Systems House Istanbul, Turkey Polyurethanes Polyurethane Systems House King’s Lynn, U.K.
Advanced Materials Formulating and Synthesis Facility McIntosh, Alabama Advanced Materials Formulating and Synthesis Facility Monthey, Switzerland Advanced Materials Formulating and Synthesis Facility Panyu, China (7) Advanced Materials Formulating and Synthesis Facility Rock Hill, South Carolina Advanced Materials Formulating and Synthesis Facility Bad Saeckingen, Germany Advanced Materials Formulating Facility East Lansing, Michigan Advanced Materials Formulating Facility Harrison City, Pennsylvania Advanced Materials Formulating Facility Los Angeles, California Advanced Materials Formulating Facility Taboão da Serra, Brazil Advanced Materials Formulating Facility Akron, Ohio Advanced Materials Synthesis Facility Bergkamen, Germany Advanced Materials Synthesis Facility Pamplona, Spain Advanced Materials Synthesis Facility Merrimack, New Hampshire (1) Advanced Materials Research Facility Basel, Switzerland (1) Advanced Materials Advanced Materials Regional Headquarters and Technology Center (1) Leased land and/or building.
Advanced Materials Formulating and Synthesis Facility McIntosh, Alabama Advanced Materials Formulating and Synthesis Facility Monthey, Switzerland Advanced Materials Formulating and Synthesis Facility Panyu, China (6) Advanced Materials Formulating and Synthesis Facility Rock Hill, South Carolina Advanced Materials Formulating and Synthesis Facility Bad Saeckingen, Germany Advanced Materials Formulating Facility East Lansing, Michigan Advanced Materials Formulating Facility Harrison City, Pennsylvania Advanced Materials Formulating Facility Los Angeles, California Advanced Materials Formulating Facility Taboão da Serra, Brazil Advanced Materials Formulating Facility Akron, Ohio Advanced Materials Synthesis Facility Bergkamen, Germany Advanced Materials Synthesis Facility Pamplona, Spain Advanced Materials Synthesis Facility Merrimack, New Hampshire (1) Advanced Materials Research Facility Basel, Switzerland (1) Advanced Materials Advanced Materials Regional Headquarters and Technology Center (1) Leased land and/or building.
Rubicon is a separate legal entity that operates both the assets that we own jointly with Lanxess and our wholly owned assets at Geismar. (6) 50% interest in AAC, our consolidated manufacturing joint venture with the Zamil Group. (7) 95%-owned consolidated manufacturing joint venture with Guangzhou Sheng’an Package Company Limited.
Rubicon is a separate legal entity that operates both the assets that we own jointly with Lanxess and our wholly-owned assets at Geismar. (5) 50% interest in AAC, our consolidated manufacturing joint venture with the Zamil Group. (6) 95%-owned consolidated manufacturing joint venture with Guangzhou Sheng’an Package Company Limited.
(5) The ownership of the Geismar facility is as follows: we own 100% of the MDI, polyol and maleic anhydride facilities, and Rubicon, a consolidated manufacturing joint venture with Lanxess in which we own a 50% interest, owns the aniline and nitrobenzene facilities.
(4) The ownership of the Geismar facility is as follows: we own 100% of the MDI, polyol and maleic anhydride facilities, and Rubicon, a consolidated manufacturing joint venture with Lanxess in which we own a 50% interest, owns the aniline and nitrobenzene facilities.
(1) Polyurethanes Polyurethane Systems House Kuan Yin, Taiwan Polyurethanes Polyurethane Systems House Obninsk, Russia Polyurethanes Polyurethane Systems House Pune, India (1) Polyurethanes Polyurethane Systems House Samutprakarn, Thailand (1) Polyurethanes Polyurethane Systems House Tianjin, China (1) Polyurethanes Polyurethane Systems House Tlalnepantla, Mexico Polyurethanes Polyurethane Systems House Deggendorf, Germany Polyurethanes Polyurethane Systems House and Technology Center Jinshan, China (1) Polyurethanes TPU Manufacturing Facility Osnabrück, Germany Polyurethanes TPU Manufacturing Facility Ringwood, Illinois (1) Polyurethanes TPU Manufacturing Facility Derry, New Hampshire (1) Polyurethanes TPU Research Facility Nanjing, China (4) Polyurethanes PO and MTBE Manufacturing Facilities Houston, Texas (1) Polyurethanes Polyols Manufacturing Facility Ho Chi Minh City, Vietnam (1) Polyurethanes and Advanced Materials Polyurethane Systems House and Formulating Facility Wilton, U.K.
(1) Polyurethanes Polyurethane Systems House Kuan Yin, Taiwan Polyurethanes Polyurethane Systems House Obninsk, Russia Polyurethanes Polyurethane Systems House Pune, India (1) Polyurethanes Polyurethane Systems House Tianjin, China (1) Polyurethanes Polyurethane Systems House Tlalnepantla, Mexico Polyurethanes Polyurethane Systems House Deggendorf, Germany Polyurethanes Polyurethane Systems House and Technology Center Jinshan, China (1) Polyurethanes TPU Manufacturing Facility Osnabrück, Germany Polyurethanes TPU Manufacturing Facility Ringwood, Illinois (1) Polyurethanes TPU Manufacturing Facility Derry, New Hampshire (1) Polyurethanes TPU Research Facility Nanjing, China (3) Polyurethanes PO and MTBE Manufacturing Facilities Houston, Texas (1) Polyurethanes Polyols Manufacturing Facility Ho Chi Minh City, Vietnam (1) Polyurethanes and Advanced Materials Polyurethane Systems House and Formulating Facility Wilton, U.K.
Polyurethanes Aniline and Nitrobenzene Manufacturing Facilities Rotterdam, The Netherlands (1) Polyurethanes MDI Manufacturing Facility, Polyols Manufacturing Facilities, Polyurethane Systems House and Shared Services Center Geismar, Louisiana (5) Polyurethanes and Performance Products MDI, Nitrobenzene(5), Aniline(5), Polyols and Maleic Anhydride Manufacturing Facilities, Polyurethane Systems House Everberg, Belgium Polyurethanes and Performance Products Polyurethane and Performance Products Regional Headquarters, Global Technology Center and Shared Service Center Shanghai, China (1) Polyurethanes, Performance Products and Advanced Materials Polyurethanes, Performance Products and Advanced Materials Regional Headquarters, Global Technology Center, Shared Services Center and Polyurethane Systems House Conroe, Texas Performance Products Amines Manufacturing Facility Freeport, Texas (1) Performance Products Amines Manufacturing Facility Jubail, Saudi Arabia (6) Performance Products Amines Manufacturing Facility Jurong Island, Singapore (1) Performance Products Amines Manufacturing Facility Llanelli, U.K.
Polyurethanes Aniline and Nitrobenzene Manufacturing Facilities Rotterdam, The Netherlands (1) Polyurethanes MDI Manufacturing Facility, Polyols Manufacturing Facilities, Polyurethane Systems House and Shared Services Center Geismar, Louisiana (4) Polyurethanes and Performance Products MDI, Nitrobenzene (5) , Aniline (5) , Polyols and Maleic Anhydride Manufacturing Facilities, Polyurethane Systems House Frankfurt, Germany (1) Polyurethanes, Performance Products and Advanced Materials Polyurethanes, Performance Products and Advanced Materials Regional Headquarters Tienen, Belgium (1) Polyurethanes and Performance Products Global Technology Center Shanghai, China (1) Polyurethanes, Performance Products and Advanced Materials Polyurethanes, Performance Products and Advanced Materials Regional Headquarters, Global Technology Center, Shared Services Center and Polyurethane Systems House Conroe, Texas Performance Products Amines Manufacturing Facility Freeport, Texas (1) Performance Products Amines Manufacturing Facility Jubail, Saudi Arabia (5) Performance Products Amines Manufacturing Facility Jurong Island, Singapore (1) Performance Products Amines Manufacturing Facility Llanelli, U.K.
(2) 35% interest in SLIC, our unconsolidated manufacturing joint venture with BASF and three Chinese chemical companies. (3) 51%-owned consolidated manufacturing joint venture with Basic Chemicals Industries Ltd. (4) 49% interest in Nanjing Jinling Huntsman New Material Co., Ltd., our unconsolidated manufacturing joint venture with Sinopec.
(2) 51%-owned consolidated manufacturing joint venture with Basic Chemicals Industries Ltd. (3) 49% interest in Nanjing Jinling Huntsman New Material Co., Ltd., our unconsolidated manufacturing joint venture with Sinopec.
Our principal executive offices are located at 10003 Woodloch Forest Drive, The Woodlands, Texas 77380. The following is a list of our principal physical properties where manufacturing, research and main office facilities are located.
Our principal executive offices are located at 10003 Woodloch Forest Drive, The Woodlands, Texas 77380. The following is a list of our principal physical properties where manufacturing, research and main office facilities are located. These facilities are in good operating condition, are suitable and adequate for their use and have sufficient capacity for our current needs.
Removed
Location Business segment Description of facility The Woodlands, Texas (1) Various Executive Offices, Operating Headquarters, Global Technology Center and Shared Services Center Kraków, Poland (1) Various Global Business Center Kuala Lumpur, Malaysia (1) Various Global Business Center San Jose, Costa Rica (1) Various Global Business Center Mumbai, India (1) Various Technology Center, Administrative Offices, Labs and Shared Services Center Wynyard, U.K.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

1 edited+0 added−0 removed2 unchanged
Biggest changeThe complaint alleged multiple unauthorized emissions events and reporting discrepancies that occurred between December 2016 and June 2019 at our former manufacturing facility in Port Neches, Texas. While the state initially sought monetary relief between $250,000 and $1 million, additional allegations were added, which may result in a higher penalty.
Biggest changeThe complaint alleged multiple unauthorized emissions events and reporting discrepancies that occurred between December 2016 and June 2019 at our former manufacturing facility in Port Neches, Texas. While the state initially sought monetary relief between $250,000 and $1 million, additional allegations were added, which may result in a penalty in the upper range or higher.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

20 edited+2 added−2 removed7 unchanged
Biggest changeAggarwal left the Company in 2013 to join Louis Dreyfus Commodities B.V. as Chief Executive Officer of Asia Region, a position he held until his return in 2015. Brittany Benko , age 48, is Senior Vice President, Environmental, Health & Safety and Manufacturing Excellence. Prior to joining Huntsman in August 2020, Ms.
Biggest changeBrittany Benko , age 49, is Senior Vice President, Environmental, Health & Safety and Manufacturing Excellence and Corporate Sustainability Officer. Prior to joining Huntsman in August 2020, Ms. Benko served as Vice President, Health, Safety, Environment and Regulatory at Southwestern Energy Company. Previously, Ms.
Stryker started his legal career as a judicial clerk to the Honorable Robert H. Bork on the U.S. Court of Appeals for the D.C. Circuit. Anthony P. Hankins , age 65, is Division President, Polyurethanes and Chief Executive Officer, Asia-Pacific. Mr. Hankins was appointed to these positions in March 2004 and February 2011, respectively.
Stryker started his legal career as a judicial clerk to the Honorable Robert H. Bork on the U.S. Court of Appeals for the D.C. Circuit. Anthony P. Hankins , age 66, is Division President, Polyurethanes and Chief Executive Officer, Asia Pacific. Mr. Hankins was appointed to these positions in March 2004 and February 2011, respectively.
Hirsch held numerous positions with International Textile Group, Ciba Specialty Chemicals and Milliken & Company. Scott J. Wright , age 51, is Division President, Advanced Materials. Mr. Wright was appointed to this position in June 2016. Prior to that time, Mr. Wright served as Vice President of Huntsman Advanced Materials—Europe, Middle East & Africa since 2011.
Hirsch held numerous positions with International Textile Group, Ciba Specialty Chemicals and Milliken & Company. Scott J. Wright , age 52, is Division President, Advanced Materials. Mr. Wright was appointed to this position in June 2016. Prior to that time, Mr. Wright served as Vice President of Huntsman Advanced Materials—Europe, Middle East & Africa since 2011.
Hankins worked for ICI from 1980 to February 1998, when he joined our Company. At ICI, Mr. Hankins held numerous management positions in the plastics, fibers and polyurethanes businesses. He has extensive international experience, having held senior management positions in Europe, Asia and the U.S. Chuck Hirsch , age 55, is Division President, Performance Products.
Hankins worked for ICI from 1980 to February 1998, when he joined our Company. At ICI, Mr. Hankins held numerous management positions in the plastics, fibers and polyurethanes businesses. He has extensive international experience, having held senior management positions in Europe, Asia and the U.S. Chuck Hirsch , age 56, is Division President, Performance Products.
Jorgensen served as an Internal Audit Manager at General Electric Consumer Finance and a Senior Audit Manager at Deloitte & Touche LLP. Mr. Jorgensen is a Certified Public Accountant. Twila Day , age 61, is Vice President and Chief Information Officer. Ms. Day was appointed to this position upon joining Huntsman in November 2018. Prior to joining Huntsman, Ms.
Jorgensen served as an Internal Audit Manager at General Electric Consumer Finance and a Senior Audit Manager at Deloitte & Touche LLP. Mr. Jorgensen is a Certified Public Accountant. Twila Day , age 62, is Vice President and Chief Information Officer. Ms. Day was appointed to this position upon joining Huntsman in November 2018. Prior to joining Huntsman, Ms.
Hardman , age 59, is Vice President, Tax. Mr. Hardman served as Chief Tax Officer from 1999 until he was appointed to his current position in 2002. Prior to joining Huntsman in 1999, Mr. Hardman was a tax Senior Manager with the accounting firm of Deloitte & Touche LLP, where he worked for 10 years. Mr.
Hardman , age 60, is Vice President, Tax. Mr. Hardman served as Chief Tax Officer from 1999 until he was appointed to his current position in 2002. Prior to joining Huntsman in 1999, Mr. Hardman was a tax Senior Manager with the accounting firm of Deloitte & Touche LLP, where he worked for 10 years. Mr.
Previously, he was Vice President, Equity Research, Building Products and Materials, for Northcoast Research. Mr. Marcuse is a CFA charterholder and holds a master’s degree in business administration. Claire Mei , age 48, is Vice President and Treasurer. Ms. Mei was appointed to this role upon joining Huntsman in August of 2018. Prior to joining Huntsman, Ms.
Previously, he was Vice President, Equity Research, Building Products and Materials, for Northcoast Research. Mr. Marcuse is a CFA charterholder and holds a master’s degree in business administration. Claire Mei , age 49, is Vice President and Treasurer. Ms. Mei was appointed to this role upon joining Huntsman in August of 2018. Prior to joining Huntsman, Ms.
ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 22 Table of Contents INFORMATION ABOUT OUR EXECUTIVE OFFICERS The following is information concerning our executive officers and significant employees as of the date of this report. Peter R. Huntsman , age 59, is Chairman of the Board, President and Chief Executive Officer of our Company. Peter R.
ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 22 Table of Contents INFORMATION ABOUT OUR EXECUTIVE OFFICERS The following is information concerning our executive officers and significant employees as of the date of this report. Peter R. Huntsman , age 60, is Chairman of the Board, President and Chief Executive Officer of our Company. Peter R.
Prior to joining Huntsman, Mr. Stryker served as Senior Vice President, General Counsel, Secretary and Chief Compliance Officer of the BASF Corporation since 2004. Previously, he was Associate General Counsel and Chief Compliance Officer at Siemens Corporation and, prior to that, a partner at the law firm of Kirkland & Ellis. Mr.
Stryker served as Senior Vice President, General Counsel, Secretary and Chief Compliance Officer of the BASF Corporation since 2004. Previously, he was Associate General Counsel and Chief Compliance Officer at Siemens Corporation and, prior to that, a partner at the law firm of Kirkland & Ellis. Mr.
Hardman is a Certified Public Accountant and holds a master’s degree in tax accounting. 23 Table of Contents Ivan Marcuse , age 46, is Vice President, Investor Relations. Prior to joining Huntsman in April 2017, Mr. Marcuse served as Director, Equity Research, Specialty Chemicals for KeyBanc Capital Markets Inc. from August 2011 to February 2017.
Hardman is a Certified Public Accountant and holds a master’s degree in tax accounting. 23 Table of Contents Ivan Marcuse , age 47, is Vice President, Investor Relations and Corporate Development. Prior to joining Huntsman in April 2017, Mr. Marcuse served as Director, Equity Research, Specialty Chemicals for KeyBanc Capital Markets Inc. from August 2011 to February 2017.
Before joining Huntsman’s Advanced Materials segment, Mr. Wright spent 15 years in Huntsman’s former pigments and additives business in a number of roles of increasing responsibility including product development, business planning, marketing and sales. Prior to joining Huntsman in July 1999, Mr. Wright worked with ICI. Rohit Aggarwal , age 55 is Division President, Textile Effects.
Before joining Huntsman’s Advanced Materials segment, Mr. Wright spent 15 years in Huntsman’s former pigments and additives business in a number of roles of increasing responsibility including product development, business planning, marketing and sales. Prior to joining Huntsman in July 1999, Mr. Wright worked with ICI.
Lister served in numerous financial and business roles in Polyurethanes both in Europe and in the United States. Mr. Lister joined Huntsman in July 1999 with the ICI acquisition. Mr. Lister is a U.K. Chartered Management Accountant. David Stryker, age 64, is Executive Vice President, General Counsel and Secretary. Mr. Stryker was appointed to this position in June 2013.
Lister joined Huntsman in July 1999 with the ICI acquisition. Mr. Lister is a U.K. Chartered Management Accountant. David Stryker, age 65, is Executive Vice President, General Counsel and Secretary. Mr. Stryker was appointed to this position in June 2013. Prior to joining Huntsman, Mr.
From May 2019 to June 2021, Mr. Lister served as Vice President, Corporate Development. From April 2011 to April 2019, Mr. Lister served in Huntsman’s Polyurethanes division as Vice President, Global Finance and Controller, a role including divisional leadership of strategic planning as well as mergers and acquisitions. Prior to that, Mr.
From April 2011 to April 2019, Mr. Lister served in Huntsman’s Polyurethanes division as Vice President, Global Finance and Controller, a role including divisional leadership of strategic planning as well as mergers and acquisitions. Prior to that, Mr. Lister served in numerous financial and business roles in Polyurethanes both in Europe and in the U.S. Mr.
Rogers held a variety of positions with Texaco Chemical Company. Steven C. Jorgensen , age 54, is Vice President and Controller. Prior to his appointment to this position in August 2021, Mr.
Rogers served as Area Manager, Human Resources—Jefferson County Operations. Prior to joining Huntsman, Mr. Rogers held a variety of positions with Texaco Chemical Company. Steven C. Jorgensen , age 55, is Vice President and Controller. Prior to his appointment to this position in August 2021, Mr.
Rogers served as Director, Human Resources—Americas and from August 2000 to October 2003, he served as Director, Human Resources for our Polymers and Base Chemicals businesses. From the time he joined Huntsman in 1994 to August 2000, Mr. Rogers served as Area Manager, Human Resources—Jefferson County Operations. Prior to joining Huntsman, Mr.
From May 2004 to August 2009, Mr. Rogers served as Vice President, Global Human Resources, from October 2003 to May 2004, Mr. Rogers served as Director, Human Resources—Americas and from August 2000 to October 2003, he served as Director, Human Resources for our Polymers and Base Chemicals businesses. From the time he joined Huntsman in 1994 to August 2000, Mr.
Benko served as Vice President, Health, Safety, Environment and Regulatory at Southwestern Energy Company. Previously, Ms. Benko served in a variety of EHS roles with increasing responsibility at several companies including Anadarko Petroleum Corporation, Chesapeake Energy Corporation and BP. R. Wade Rogers , age 57, is Senior Vice President, Global Human Resources and Chief Compliance Officer. Mr.
Benko served in a variety of EHS roles with increasing responsibility at several companies including Anadarko Petroleum Corporation, Chesapeake Energy Corporation and BP. R. Wade Rogers , age 58, is Senior Vice President, Global Human Resources and Chief Compliance Officer. Mr. Rogers has held the position of Senior Vice President, Global Human Resources since August 2009.
Huntsman is a director or manager, as applicable, of Huntsman International and certain of our other subsidiaries. Mr. Huntsman currently serves as a director of Venator Materials PLC, which separated from our Company in 2017. Phil Lister , age 50, is Executive Vice President and Chief Financial Officer. Mr. Lister was appointed to this position in July 2021.
Huntsman is a director or manager, as applicable, of Huntsman International and certain of our other subsidiaries. Phil Lister , age 51, is Executive Vice President and Chief Financial Officer. Mr. Lister was appointed to this position in July 2021. From May 2019 to June 2021, Mr. Lister served as Vice President, Corporate Development.
Vaughn held numerous roles in finance, accounting and information technology. Prior to joining Huntsman in 1997, Ms. Vaughn worked for the accounting firm of Deloitte & Touche LLP. Ms. Vaughn is a Certified Public Accountant. PART II
Vaughn worked for the accounting firm of Deloitte & Touche LLP. Ms. Vaughn is a Certified Public Accountant. PART II
Poukens held various accounting and auditing positions with European companies in Belgium. Mr. Poukens is a Certified Internal Auditor. Nooshin Vaughn , age 49, is Vice President, Financial Planning and Analysis. Ms. Vaughn was appointed to this position effective June 2018. Ms. Vaughn previously served as Director, Investor Relations. Prior to that, Ms.
Nooshin Vaughn , age 50, is Vice President, Financial Planning and Analysis and Global Business Services. Ms. Vaughn was appointed to this position effective June 2018. Ms. Vaughn previously served as Director, Investor Relations. Prior to that, Ms. Vaughn held numerous roles in finance, accounting and information technology. Prior to joining Huntsman in 1997, Ms.
Mei holds a master’s degree in business administration. Pierre Poukens , age 60, is Vice President, Internal Audit, a position he has held since February 2012. Mr. Poukens was Director of Internal Audit from April 2005 to January 2012 and joined Huntsman as Internal Audit Manager in January 2000. Prior to joining Huntsman, Mr.
Poukens was Director of Internal Audit from April 2005 to January 2012 and joined Huntsman as Internal Audit Manager in January 2000. Prior to joining Huntsman, Mr. Poukens held various accounting and auditing positions with European companies in Belgium. Mr. Poukens is a Certified Internal Auditor.
Removed
Prior to his appointment to this position in July 2016, Mr. Aggarwal served as Vice President and Managing Director of Indian Subcontinent since July 2015. Mr. Aggarwal joined Huntsman in 2005 and has held various positions within the Advanced Materials and Textile Effects divisions. Mr.
Added
Mei holds a master’s degree in business administration. Rachel Muir , age 50, is Vice President, Deputy General Counsel and Assistant Secretary. Ms. Muir was appointed to this position in May 2022. Ms. Muir joined Huntsman in 2007 and has held multiple positions of increasing responsibility in the legal department. Prior to joining Huntsman, Ms.
Removed
Rogers has held the position of Senior Vice President, Global Human Resources since August 2009. From May 2004 to August 2009, Mr. Rogers served as Vice President, Global Human Resources, from October 2003 to May 2004, Mr.
Added
Muir was an associate attorney at the law firm of Ballard Spahr LLP. Ms. Muir started her legal career at Gibson, Dunn & Crutcher LLP. Pierre Poukens , age 61, is Vice President, Internal Audit, a position he has held since February 2012. Mr.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

8 edited+0 added−0 removed5 unchanged
Biggest changeTotal number of Approximate shares purchased dollar value of Total number Average as part of publicly shares that may yet of shares price paid announced plans be purchased under purchased per share(1) or programs(2) the plans or programs(2) October 1 - October 31 1,888,511 $ 26.48 1,888,511 $ 1,097,000,000 November 1 - November 30 3,839,893 27.57 3,839,893 991,000,000 December 1 - December 31 3,400,174 27.68 3,400,174 897,000,000 Total 9,128,578 27.39 9,128,578 (1) Represents net purchase price per share, exclusive of any fees or commissions.
Biggest changeTotal number of Approximate shares purchased dollar value of Total number Average as part of publicly shares that may yet of shares price paid announced plans be purchased under purchased per share (1) or programs (2) the plans or programs (2) October 1 - October 31 1,006,124 $ 23.38 1,006,053 $ 574,000,000 November 1 - November 30 560,539 24.40 560,539 560,000,000 December 1 - December 31 506,978 25.26 506,905 547,000,000 Total 2,073,641 24.11 2,073,497 (1) Represents net purchase price per share, exclusive of any fees or commissions.
(2) On October 26, 2021, our Board of Directors announced a new share repurchase program of $1 billion. In conjunction with the inception of this program, we retired our prior share repurchase program. On March 25, 2022, our Board of Directors increased the authorization of our existing share prepurchase program from $1 billion of repurchases to $2 billion.
(2) On October 26, 2021, our Board of Directors announced a new share repurchase program of $1 billion. In conjunction with the inception of this program, we retired our prior share repurchase program. On March 25, 2022, our Board of Directors increased the authorization of our existing share repurchase program from $1 billion of repurchases to $2 billion.
P urchases Of E quity S ecurities By The C ompany The following table provides information with respect to shares of our common stock that we repurchased as part of our share repurchase program and shares of restricted stock granted under our stock incentive plans that we withheld upon vesting to satisfy our tax withholding obligations during the three months ended December 31, 2022.
P urchases Of E quity S ecurities By The C ompany The following table provides information with respect to shares of our common stock that we repurchased as part of our share repurchase program and shares of restricted stock granted under our stock incentive plans that we withheld upon vesting to satisfy our tax withholding obligations during the three months ended December 31, 2023.
The 2022 Performance Peers consist of the following companies: Ashland Global Holdings Inc., BASF Corp, Celanese Corporation, Clariant AG, Covestro AG, Dow Inc., Eastman Chemical Company, Evonik, H.B. Fuller Company, Lanxess AG, Trinseo S.A. and Westlake Chemical Corp.
The 2023 Performance Peers consist of the following companies: Ashland Global Holdings Inc., BASF Corp, Celanese Corporation, Clariant AG, Covestro AG, Dow Inc., Eastman Chemical Company, Evonik, H.B. Fuller Company, Lanxess AG, Trinseo S.A. and Westlake Chemical Corp.
The 2022 Performance Peers are used to evaluate our total stockholder return relative to them and pay performance share units based on our performance. More information about how the 2022 Performance Peers are used to pay performance share units will be disclosed in the definitive Proxy Statement for our 2023 Annual Meeting of Stockholders. 25 Table of Contents ITEM 6.
The 2023 Performance Peers are used to evaluate our total stockholder return relative to them and pay performance share units based on our performance. More information about how the 2023 Performance Peers is used to pay performance share units will be disclosed in the definitive Proxy Statement for our 2024 Annual Meeting of Stockholders. 25 Table of Contents ITEM 6.
The comparison assumes $100 was invested on December 31, 2017 in our common stock as well as in the S&P 500 Index and the 2022 Performance Peers and assumes reinvestment of dividends, as applicable. The figures in the graph below are rounded to the nearest dollar. All data in the graph have been provided by S&P Global.
The comparison assumes $100 was invested on December 31, 2018 in our common stock as well as in the S&P 500 Index and the 2023 Performance Peers and assumes reinvestment of dividends, as applicable. The figures in the graph below are rounded to the nearest dollar. All data in the graph have been provided by S&P Global.
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES M arket I nformation And H olders Our common stock is listed on the New York Stock Exchange under the symbol “HUN.” As of February 7, 2023, there were approximately 93 stockholders of record and the closing price of our common stock on the New York Stock Exchange was $32.75 per share.
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES M arket I nformation And H olders Our common stock is listed on the New York Stock Exchange under the symbol “HUN.” As of February 7, 2024, there were approximately 98 stockholders of record and the closing price of our common stock on the New York Stock Exchange was $23.92 per share.
During the fourth quarter of 2022, we repurchased 9,128,578 shares of our common stock for approximately $250 million, excluding commissions. 24 Table of Contents P erformance g raph The following performance graph compares the cumulative total return (including dividends) to the holders of our common stock from December 31, 2017 through December 31, 2022, with the cumulative total returns of (i) the S&P 500 Index and (ii) our 2022 performance peers, which consists of 12 chemical companies whose valuations are influenced by similar financial measures and against whom we compete for market share and investor capital (the “2022 Performance Peers”).
During the fourth quarter of 2023, we repurchased 2,073,497 shares of our common stock for approximately $50 million, including commissions, under this share repurchase program. 24 Table of Contents P erformance g raph The following performance graph compares the cumulative total return (including dividends) to the holders of our common stock from December 31, 2018 through December 31, 2023, with the cumulative total returns of (i) the S&P 500 Index and (ii) our 2023 performance peers, which consists of 12 chemical companies whose valuations are influenced by similar financial measures and against whom we compete for market share and investor capital (the “2023 Performance Peers”).

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

55 edited+13 added−43 removed39 unchanged
Biggest changeHuntsman Corporation December 31, Percent change 2022 2021 2020 2022 vs 2021 2021 vs 2020 Revenues $ 8,023 $ 7,670 $ 5,421 5 % 41 % Cost of goods sold 6,477 6,086 4,444 6 % 37 % Gross profit 1,546 1,584 977 (2 )% 62 % Operating expenses 788 813 504 (3 )% 61 % Restructuring, impairment and plant closing costs 86 40 41 115 % (2 )% Operating income 672 731 432 (8 )% 69 % Interest expense, net (62 ) (67 ) (86 ) (7 )% (22 )% Equity in income of investment in unconsolidated affiliates 67 143 42 (53 )% 240 % Fair value adjustments to Venator investment, net and related loss on disposal (12 ) (28 ) (88 ) (57 )% (68 )% Loss on early extinguishment of debt — (27 ) — (100 )% NM (Costs) income associated with the Albemarle Settlement, net (3 ) 465 — NM NM Other income, net 35 29 31 21 % (6 )% Income from continuing operations before income taxes 697 1,246 331 (44 )% 276 % Income tax expense (186 ) (191 ) (42 ) (3 )% 355 % Income from continuing operations 511 1,055 289 (52 )% 265 % Income from discontinued operations, net of tax 12 49 777 (76 )% (94 )% Net income 523 1,104 1,066 (53 )% 4 % Reconciliation of net income to adjusted EBITDA: Net income attributable to noncontrolling interests (63 ) (59 ) (32 ) 7 % 84 % Interest expense, net from continuing operations 62 67 86 (7 )% (22 )% Income tax expense from continuing operations 186 191 42 (3 )% 355 % Income tax expense from discontinued operations 19 21 246 (10 )% (91 )% Depreciation and amortization of continuing operations 281 278 267 1 % 4 % Depreciation and amortization of discontinued operations 12 18 16 (33 )% 13 % Other adjustments: Business acquisition and integration expenses and purchase accounting inventory adjustments 12 22 31 EBITDA from discontinued operations (2) (43 ) (88 ) (1,039 ) Fair value adjustments to Venator investment, net and related loss on disposal 12 28 88 Loss on early extinguishment of debt — 27 — Certain legal and other settlements and related expenses 7 13 5 Costs (income) associated with the Albemarle Settlement, net 3 (465 ) — Gain on sale of businesses/assets — (30 ) (280 ) Income from transition services arrangements (2 ) (8 ) (7 ) Certain nonrecurring information technology project implementation costs 5 8 6 Amortization of pension and postretirement actuarial losses 49 74 64 Plant incident remediation (credits) costs (4 ) — 2 Restructuring, impairment and plant closing and transition costs (3) 96 45 44 Adjusted EBITDA (1) $ 1,155 $ 1,246 $ 605 (7 )% 106 % Net cash provided by operating activities from continuing operations $ 892 $ 915 $ 231 (3 )% 296 % Net cash (used in) provided by investing activities from continuing operations (260 ) (508 ) 1,474 (49 )% NM Net cash used in financing activities (994 ) (977 ) (655 ) 2 % 49 % Capital expenditures from continuing operations (272 ) (326 ) (237 ) (17 )% 38 % 26 Table of Contents Huntsman International December 31, Percent change 2022 2021 2020 2022 vs 2021 2021 vs 2020 Revenues $ 8,023 $ 7,670 $ 5,421 5 % 41 % Cost of goods sold 6,477 6,086 4,444 6 % 37 % Gross profit 1,546 1,584 977 (2 )% 62 % Operating expenses 784 806 498 (3 )% 62 % Restructuring, impairment and plant closing costs 86 40 41 115 % (2 )% Operating income 676 738 438 (8 )% 68 % Interest expense, net (62 ) (67 ) (88 ) (7 )% (24 )% Equity in income of investment in unconsolidated affiliates 67 143 42 (53 )% 240 % Fair value adjustments to Venator investment, net and related loss on disposal (12 ) (28 ) (88 ) (57 )% (68 )% Loss on early extinguishment of debt — (27 ) — (100 )% NM (Costs) income associated with the Albemarle Settlement, net (3 ) 465 — NM NM Other income, net 34 26 28 31 % (7 )% Income from continuing operations before income taxes 700 1,250 332 (44 )% 277 % Income tax expense (188 ) (192 ) (42 ) (2 )% 357 % Income from continuing operations 512 1,058 290 (52 )% 265 % Income from discontinued operations, net of tax 12 49 777 (76 )% (94 )% Net income 524 1,107 1,067 (53 )% 4 % Reconciliation of net income to adjusted EBITDA: Net income attributable to noncontrolling interests (63 ) (59 ) (32 ) 7 % 84 % Interest expense, net from continuing operations 62 67 88 (7 )% (24 )% Income tax expense (benefit) from continuing operations 188 192 42 (2 )% 357 % Income tax expense from discontinued operations 19 21 246 (10 )% (91 )% Depreciation and amortization of continuing operations 281 278 267 1 % 4 % Depreciation and amortization of discontinued operations 12 18 16 (33 )% 13 % Other adjustments: Business acquisition and integration expenses and purchase accounting inventory adjustments 12 22 31 EBITDA from discontinued operations (2) (43 ) (88 ) (1,039 ) Fair value adjustments to Venator investment, net and related loss on disposal 12 28 88 Loss on early extinguishment of debt — 27 — Certain legal and other settlements and related expenses 7 13 5 Costs (income) associated with the Albemarle Settlement, net 3 (465 ) — Gain on sale of businesses/assets — (30 ) (280 ) Income from transition services arrangements (2 ) (8 ) (7 ) Certain nonrecurring information technology project implementation costs 5 8 6 Amortization of pension and postretirement actuarial losses 49 76 67 Plant incident remediation (credits) costs (4 ) — 2 Restructuring, impairment and plant closing and transition costs (3) 96 45 44 Adjusted EBITDA (1) $ 1,158 $ 1,252 $ 611 (8 )% 105 % Net cash provided by operating activities from continuing operations $ 895 $ 918 $ 233 (3 )% 294 % Net cash (used in) provided by investing activities from continuing operations (1,277 ) (710 ) 1,748 80 % NM Net cash provided by (used in) financing activities 22 (778 ) (933 ) NM (17 )% Capital expenditures from continuing operations (272 ) (326 ) (237 ) (17 )% 38 % 27 Table of Contents Huntsman Corporation Year ended Year ended Year ended December 31, 2022 December 31, 2021 December 31, 2020 Tax Tax Tax Gross and other(4) Net Gross and other(4) Net Gross and other(4) Net Reconciliation of net income to adjusted net income Net income $ 523 $ 1,104 $ 1,066 Net income attributable to noncontrolling interests (63 ) (59 ) (32 ) Business acquisition and integration expenses and purchase accounting inventory adjustments $ 12 $ (2 ) 10 $ 22 $ (6 ) 16 $ 31 $ (6 ) 25 Income from discontinued operations (2)(5) (43 ) 31 (12 ) (88 ) 39 (49 ) (1,039 ) 262 (777 ) Fair value adjustments to Venator investment, net and related loss on disposal 12 — 12 28 — 28 88 (9 ) 79 Loss on early extinguishment of debt — — — 27 (6 ) 21 — — — Certain legal and other settlements and related expenses 7 (2 ) 5 13 (3 ) 10 5 (1 ) 4 Costs (income) associated with the Albemarle Settlement, net 3 (1 ) 2 (465 ) 55 (410 ) — — — Gain on sale of businesses/assets — — — (30 ) 3 (27 ) (280 ) 31 (249 ) Income from transition services arrangements (2 ) — (2 ) (8 ) 2 (6 ) (7 ) 2 (5 ) Certain nonrecurring information technology project implementation costs 5 (1 ) 4 8 (2 ) 6 6 (1 ) 5 Amortization of pension and postretirement actuarial losses 49 (11 ) 38 74 (16 ) 58 64 (14 ) 50 Plant incident remediation (credits) costs (4 ) 1 (3 ) — — — 2 — 2 Establishment of significant deferred tax asset valuation allowance (6) — 49 49 — — — — — — Restructuring, impairment and plant closing and transition costs (3) 96 (23 ) 73 45 (11 ) 34 44 (11 ) 33 Adjusted net income (1) $ 636 $ 726 $ 201 Weighted average shares-basic 201.0 219.2 220.6 Weighted average shares-diluted 203.0 221.4 221.9 Basic net income attributable to Huntsman Corporation per share: Income from continuing operations $ 2.23 $ 4.55 $ 1.17 Income from discontinued operations 0.06 0.22 3.52 Net income $ 2.29 $ 4.77 $ 4.69 Diluted net income attributable to Huntsman Corporation per share: Income from continuing operations $ 2.21 $ 4.50 $ 1.16 Income from discontinued operations 0.06 0.22 3.50 Net income $ 2.27 $ 4.72 $ 4.66 Other non-GAAP measures: Diluted adjusted net income per share (1) $ 3.13 $ 3.28 $ 0.91 Net cash provided by operating activities from continuing operations $ 892 $ 915 $ 231 Capital expenditures from continuing operations (272 ) (326 ) (237 ) Free cash flow from continuing operations (1) $ 620 $ 589 $ (6 ) Effective tax rate 27 % 15 % 13 % Impact of non-GAAP adjustments (7) (7 )% 3 % 5 % Adjusted effective tax rate (1) 20 % 18 % 18 % Other cash flow measure: Net cash proceeds from the Albemarle Settlement (8) $ 78 $ 333 $ — Taxes paid on sale of businesses (9) — (3 ) (257 ) NM—Not meaningful (1) See “—Non-GAAP Financial Measures.” (2) Includes the gain on the sale of our Chemical Intermediates Businesses in 2020.
Biggest changeHuntsman Corporation December 31, Percent change 2023 2022 2021 2023 vs 2022 2022 vs 2021 Revenues $ 6,111 $ 8,023 $ 7,670 (24 )% 5 % Cost of goods sold 5,205 6,477 6,086 (20 )% 6 % Gross profit 906 1,546 1,584 (41 )% (2 )% Operating expenses 804 788 813 2 % (3 )% Restructuring, impairment and plant closing costs 18 86 40 (79 )% 115 % Operating income 84 672 731 (88 )% (8 )% Interest expense, net (65 ) (62 ) (67 ) 5 % (7 )% Equity in income of investment in unconsolidated affiliates 83 67 143 24 % (53 )% Fair value adjustments to Venator investment, net (5 ) (12 ) (28 ) (58 )% (57 )% Loss on early extinguishment of debt — — (27 ) — (100 )% (Costs) income associated with the Albemarle Settlement, net — (3 ) 465 (100 )% NM Other income, net 2 35 29 (94 )% 21 % Income from continuing operations before income taxes 99 697 1,246 (86 )% (44 )% Income tax expense (64 ) (186 ) (191 ) (66 )% (3 )% Income from continuing operations 35 511 1,055 (93 )% (52 )% Income from discontinued operations, net of tax 118 12 49 883 % (76 )% Net income 153 523 1,104 (71 )% (53 )% Reconciliation of net income to adjusted EBITDA: Net income attributable to noncontrolling interests (52 ) (63 ) (59 ) (17 )% 7 % Interest expense, net from continuing operations 65 62 67 5 % (7 )% Income tax expense from continuing operations 64 186 191 (66 )% (3 )% Income tax expense from discontinued operations 17 19 21 (11 )% (10 )% Depreciation and amortization of continuing operations 278 281 278 (1 )% 1 % Depreciation and amortization of discontinued operations — 12 18 (100 )% (33 )% Other adjustments: Business acquisition and integration expenses and purchase accounting inventory adjustments 4 12 22 EBITDA from discontinued operations (2) (135 ) (43 ) (88 ) Fair value adjustments to Venator investment, net 5 12 28 Loss on early extinguishment of debt — — 27 Certain legal and other settlements and related expenses 6 7 13 Costs (income) associated with the Albemarle Settlement, net — 3 (465 ) Gain on sale of businesses/assets — — (30 ) Income from transition services arrangements — (2 ) (8 ) Certain nonrecurring information technology project implementation costs 5 5 8 Amortization of pension and postretirement actuarial losses 37 49 74 Plant incident remediation credits — (4 ) — Restructuring, impairment and plant closing and transition costs (3) 25 96 45 Adjusted EBITDA (1) $ 472 $ 1,155 $ 1,246 (59 )% (7 )% Net cash provided by operating activities from continuing operations $ 251 $ 892 $ 915 (72 )% (3 )% Net cash provided by (used in) investing activities from continuing operations 309 (260 ) (508 ) NM (49 )% Net cash used in financing activities (620 ) (994 ) (977 ) (38 )% 2 % Capital expenditures from continuing operations (230 ) (272 ) (326 ) (15 )% (17 )% 26 Table of Contents Huntsman International December 31, Percent change 2023 2022 2021 2023 vs 2022 2022 vs 2021 Revenues $ 6,111 $ 8,023 $ 7,670 (24 )% 5 % Cost of goods sold 5,205 6,477 6,086 (20 )% 6 % Gross profit 906 1,546 1,584 (41 )% (2 )% Operating expenses 801 784 806 2 % (3 )% Restructuring, impairment and plant closing costs 18 86 40 (79 )% 115 % Operating income 87 676 738 (87 )% (8 )% Interest expense, net (65 ) (62 ) (67 ) 5 % (7 )% Equity in income of investment in unconsolidated affiliates 83 67 143 24 % (53 )% Fair value adjustments to Venator investment, net (5 ) (12 ) (28 ) (58 )% (57 )% Loss on early extinguishment of debt — — (27 ) — (100 )% (Costs) income associated with the Albemarle Settlement, net — (3 ) 465 (100 )% NM Other income, net 2 34 26 (94 )% 31 % Income from continuing operations before income taxes 102 700 1,250 (85 )% (44 )% Income tax expense (65 ) (188 ) (192 ) (65 )% (2 )% Income from continuing operations 37 512 1,058 (93 )% (52 )% Income from discontinued operations, net of tax 118 12 49 883 % (76 )% Net income 155 524 1,107 (70 )% (53 )% Reconciliation of net income to adjusted EBITDA: Net income attributable to noncontrolling interests (52 ) (63 ) (59 ) (17 )% 7 % Interest expense, net from continuing operations 65 62 67 5 % (7 )% Income tax expense from continuing operations 65 188 192 (65 )% (2 )% Income tax expense from discontinued operations 17 19 21 (11 )% (10 )% Depreciation and amortization of continuing operations 278 281 278 (1 )% 1 % Depreciation and amortization of discontinued operations — 12 18 (100 )% (33 )% Other adjustments: Business acquisition and integration expenses and purchase accounting inventory adjustments 4 12 22 EBITDA from discontinued operations (2) (135 ) (43 ) (88 ) Fair value adjustments to Venator investment, net 5 12 28 Loss on early extinguishment of debt — — 27 Certain legal and other settlements and related expenses 6 7 13 Costs (income) associated with the Albemarle Settlement, net — 3 (465 ) Gain on sale of businesses/assets — — (30 ) Income from transition services arrangements — (2 ) (8 ) Certain nonrecurring information technology project implementation costs 5 5 8 Amortization of pension and postretirement actuarial losses 37 49 76 Plant incident remediation credits — (4 ) — Restructuring, impairment and plant closing and transition costs (3) 25 96 45 Adjusted EBITDA (1) $ 475 $ 1,158 $ 1,252 (59 )% (8 )% Net cash provided by operating activities from continuing operations $ 253 $ 895 $ 918 (72 )% (3 )% Net cash used in investing activities from continuing operations (42 ) (1,277 ) (710 ) (97 )% 80 % Net cash (used in) provided by financing activities (271 ) 22 (778 ) NM NM Capital expenditures from continuing operations (230 ) (272 ) (326 ) (15 )% (17 )% 27 Table of Contents Huntsman Corporation Year ended Year ended Year ended December 31, 2023 December 31, 2022 December 31, 2021 Tax Tax Tax Gross and other (4) Net Gross and other (4) Net Gross and other (4) Net Reconciliation of net income to adjusted net income Net income $ 153 $ 523 $ 1,104 Net income attributable to noncontrolling interests (52 ) (63 ) (59 ) Business acquisition and integration expenses and purchase accounting inventory adjustments $ 4 $ (1 ) 3 $ 12 $ (2 ) 10 $ 22 $ (6 ) 16 Income from discontinued operations (2)(5) (135 ) 17 (118 ) (43 ) 31 (12 ) (88 ) 39 (49 ) Fair value adjustments to Venator investment, net 5 — 5 12 — 12 28 — 28 Loss on early extinguishment of debt — — — — — — 27 (6 ) 21 Certain legal and other settlements and related expenses 6 (1 ) 5 7 (2 ) 5 13 (3 ) 10 Costs (income) associated with the Albemarle Settlement, net — — — 3 (1 ) 2 (465 ) 55 (410 ) Gain on sale of businesses/assets — — — — — — (30 ) 3 (27 ) Income from transition services arrangements — — — (2 ) — (2 ) (8 ) 2 (6 ) Certain nonrecurring information technology project implementation costs 5 (1 ) 4 5 (1 ) 4 8 (2 ) 6 Amortization of pension and postretirement actuarial losses 37 (6 ) 31 49 (11 ) 38 74 (16 ) 58 Plant incident remediation credits — — — (4 ) 1 (3 ) — — — Establishment of significant deferred tax asset valuation allowance (6) — 14 14 — 49 49 — — — Restructuring, impairment and plant closing and transition costs (3) 25 (3 ) 22 96 (23 ) 73 45 (11 ) 34 Adjusted net income (1) $ 67 $ 636 $ 726 Weighted average shares-basic 177.4 201.0 219.2 Weighted average shares-diluted 177.4 203.0 221.4 Basic net income attributable to Huntsman Corporation per share: Income from continuing operations $ (0.10 ) $ 2.23 $ 4.55 Income from discontinued operations 0.67 0.06 0.22 Net income $ 0.57 $ 2.29 $ 4.77 Diluted net income attributable to Huntsman Corporation per share: Income from continuing operations $ (0.10 ) $ 2.21 $ 4.50 Income from discontinued operations 0.67 0.06 0.22 Net income $ 0.57 $ 2.27 $ 4.72 Other non-GAAP measures: Diluted adjusted net income per share (1) $ 0.37 $ 3.13 $ 3.28 Net cash provided by operating activities from continuing operations $ 251 $ 892 $ 915 Capital expenditures from continuing operations (230 ) (272 ) (326 ) Free cash flow from continuing operations (1) $ 21 $ 620 $ 589 Effective tax rate 65 % 27 % 15 % Impact of non-GAAP adjustments (7) (31 )% (7 )% 3 % Adjusted effective tax rate (1) 34 % 20 % 18 % NM—Not meaningful (1) See “—Non-GAAP Financial Measures.” (2) Includes the gain on the sale of our Textile Effects Business in 2023.
Management internally uses a free cash flow measure: (a) to evaluate our liquidity, (b) evaluate strategic investments, (c) plan stock buyback and dividend levels and (d) evaluate our ability to incur and service debt. 29 Table of Contents Adjusted Effective Tax Rate We believe that the effective tax rate of Huntsman Corporation or Huntsman International, as appropriate, is the performance measure calculated and presented in accordance with U.S.
Management internally uses a free cash flow measure: (a) to evaluate our liquidity, (b) evaluate strategic investments, (c) plan dividend and stock buyback levels and (d) evaluate our ability to incur and service debt. 29 Table of Contents Adjusted Effective Tax Rate We believe that the effective tax rate of Huntsman Corporation or Huntsman International, as appropriate, is the performance measure calculated and presented in accordance with U.S.
Adjusted Net Income Adjusted net income is computed by eliminating the after tax amounts related to the following from net income attributable to Huntsman Corporation: (a) business acquisition and integration expenses and purchase accounting inventory adjustments; (b) income from discontinued operations; (c) fair value adjustments to Venator investment, net and related loss on disposal; (d) loss on early extinguishment of debt; (e) certain legal and other settlements and related expenses; (f) costs (income) associated with the Albemarle Settlement, net; (g) gain on sale of businesses/assets; (h) income from transition services arrangements associated with the sale of our Chemical Intermediates Businesses to Indorama; (i) certain nonrecurring information technology project implementation costs; (j) amortization of pension and postretirement actuarial losses; (k) plant incident remediation (credits) costs; (l) establishment of significant deferred tax asset valuation allowance; and (m) restructuring, impairment and plant closing and transition costs.
Adjusted Net Income Adjusted net income is computed by eliminating the after tax amounts related to the following from net income attributable to Huntsman Corporation: (a) business acquisition and integration expenses and purchase accounting inventory adjustments; (b) income from discontinued operations; (c) fair value adjustments to Venator investment, net; (d) loss on early extinguishment of debt; (e) certain legal and other settlements and related expenses; (f) costs (income) associated with the Albemarle Settlement, net; (g) gain on sale of businesses/assets; (h) income from transition services arrangements associated with the sale of our Chemical Intermediates Businesses to Indorama; (i) certain nonrecurring information technology project implementation costs; (j) amortization of pension and postretirement actuarial losses; (k) plant incident remediation credits; (l) establishment of significant deferred tax asset valuation allowance; and (m) restructuring, impairment and plant closing and transition costs.
We disclose forward-looking adjusted effective tax rate because we cannot adequately forecast certain items and events that may or may not impact us in the near future, such as business acquisition and integration expenses and purchase accounting inventory adjustments, certain legal and other settlements and related expenses, gains on sale of businesses/assets and certain tax only items, including tax law changes not yet enacted.
We disclose forward-looking adjusted effective tax rate because we cannot adequately forecast certain items and events that may or may not impact us in the near future, such as business acquisition and integration expenses and purchase accounting inventory adjustments, certain legal and other settlements and related expenses, gain on sale of businesses/assets and certain tax only items, including tax law changes not yet enacted.
Debt” to our consolidated financial statements. 36 Table of Contents C ritical A ccounting E st imates This discussion and analysis of financial condition and results of operations is based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America.
Debt” to our consolidated financial statements. 33 Table of Contents C ritical A ccounting E st imates This discussion and analysis of financial condition and results of operations is based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America.
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) business acquisition and integration expenses and purchase accounting inventory adjustments; (b) EBITDA from discontinued operations; (c) fair value adjustments to Venator investment, net and related loss on disposal; (d) loss on early extinguishment of debt; (e) certain legal and other settlements and related expenses; (f) costs (income) associated with the Albemarle Settlement, net; (g) gain on sale of businesses/assets; (h) income from transition services arrangements related to the sale of our Chemical Intermediates Businesses to Indorama; (i) certain nonrecurring information technology project implementation costs; (j) amortization of pension and postretirement actuarial losses; (k) plant incident remediation (credits) costs; and (l) restructuring, impairment and plant closing and transition costs.
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) business acquisition and integration expenses and purchase accounting inventory adjustments; (b) EBITDA from discontinued operations; (c) fair value adjustments to Venator investment, net; (d) loss on early extinguishment of debt; (e) certain legal and other settlements and related expenses; (f) costs (income) associated with the Albemarle Settlement, net; (g) gain on sale of businesses/assets; (h) income from transition services arrangements; (i) certain nonrecurring information technology project implementation costs; (j) amortization of pension and postretirement actuarial losses; (k) plant incident remediation credits; and (l) restructuring, impairment and plant closing and transition costs.
For each of our Company and Huntsman International, the following tables set forth our consolidated results of operations for the years ended December 31, 2022, 2021 and 2020 (dollars in millions, except per share amounts).
For each of our Company and Huntsman International, the following tables set forth our consolidated results of operations for the years ended December 31, 2023, 2022 and 2021 (dollars in millions, except per share amounts).
We believe our adjusted effective tax rate provides improved comparability between periods through the exclusion of certain items, such as, business acquisition and integration expenses and purchase accounting inventory adjustments, certain legal and other settlements and related expenses, gains on sale of businesses/assets and certain tax only items, including tax law changes not yet enacted and certain changes in valuation allowances that we believe are not indicative of the businesses’ operational profitability and that may obscure underlying business results and trends.
We believe our adjusted effective tax rate provides improved comparability between periods through the exclusion of certain items, such as, business acquisition and integration expenses and purchase accounting inventory adjustments, certain legal and other settlements and related expenses, gains on sale of businesses/assets and certain tax only items, such as certain changes in valuation allowances that we believe are not indicative of the businesses’ operational profitability and that may obscure underlying business results and trends.
Our future expenditures include certain environmental, health and safety upgrades; expansions of our existing manufacturing and other facilities; certain cost reduction projects, including those described below; and certain information technology expenditures.
Our future expenditures include certain environmental, health and safety upgrades; expansions and upgrades of our existing manufacturing and other facilities; construction of new facilities; certain cost reduction projects, including those described below; and certain information technology expenditures.
GAAP, which we supplement with certain non-GAAP financial information. These non-GAAP measures should not be considered in isolation or as a substitute for the related U.S. GAAP measures, and other companies may define such measures differently. We encourage investors to review our financial statements and the reconciliation of the non-GAAP financial measures to the most directly comparable U.S.
These non-GAAP measures should not be considered in isolation or as a substitute for the related U.S. GAAP measures, and other companies may define such measures differently. We encourage investors to review our financial statements and the reconciliation of the non-GAAP financial measures to the most directly comparable U.S.
Our working capital decreased by $433 million as a result of the net impact of the following significant changes: ● The decrease in cash and cash equivalents of $387 million resulted from the matters identified on our consolidated statements of cash flows.
Our working capital decreased by $302 million as a result of the net impact of the following significant changes: ● The decrease in cash and cash equivalents of $114 million resulted from the matters identified on our consolidated statements of cash flows.
Cash Flows For Year Ended December 31, 2022 Compared with Year Ended December 31, 2021 Net cash provided by operating activities from continuing operations for 2022 and 2021 was $892 million and $915 million, respectively.
Cash Flows For Year Ended December 31, 2023 Compared with Year Ended December 31, 2022 Net cash provided by operating activities from continuing operations for 2023 and 2022 was $251 million and $892 million, respectively.
As of December 31, 2022, we had total valuation allowances of $169 million, which represents an increase of $38 million from the prior year, and we have a recognized a net deferred tax liability of $103 million. See “Note 19. Income Taxes” to our consolidated financial statements for more information regarding our deferred tax assets and valuation allowances.
As of December 31, 2023, we had total valuation allowances of $221 million, which represents an increase of $52 million from the prior year, and we have a recognized a net deferred tax liability of $131 million. See “Note 19. Income Taxes” to our consolidated financial statements for more information regarding our deferred tax assets and valuation allowances.
Debt—Direct and Subsidiary Debt—Revolving Credit Facility” to our consolidated financial statements. ● On February 17, 2023, our Board of Directors declared a $0.2375 per share cash dividend on our common stock. This represents an approximate 12% increase from the previous dividend.
Debt—Direct and Subsidiary Debt—Revolving Credit Facility” to our consolidated financial statements. ● On February 16, 2024, our Board of Directors declared a $0.25 per share cash dividend on our common stock. This represents an approximate 5% increase from the previous dividend.
The decrease in net cash provided by operating activities from continuing operations during 2022 compared with 2021 was primarily attributable to decreased operating income as described in “—Results of Operations” above, partially offset by a net cash inflow of $357 million related to changes in operating assets and liabilities for 2022 as compared with 2021.
The decrease in net cash provided by operating activities from continuing operations during 2023 compared with 2022 was primarily attributable to decreased operating income as described in “—Results of Operations” above as well as a net cash outflow of $95 million related to changes in operating assets and liabilities for 2023 as compared with 2022.
As of December 31, 2022, we had $1,847 million of combined cash and unused borrowing capacity, consisting of $654 million in cash, $1,132 million in availability under our 2022 Revolving Credit Facility and $61 million in availability under our A/R Programs. Our liquidity can be significantly impacted by various factors.
As of December 31, 2023, we had $1,738 million of combined cash and unused borrowing capacity, consisting of $540 million in cash, $1,196 million in availability under our 2022 Revolving Credit Facility and $2 million in availability under our A/R Programs. Our liquidity can be significantly impacted by various factors.
Year ended December 31, 2022 vs 2021 Average selling prices(1) Local Foreign currency Sales Mix and currency translation impact volumes(2) other Period-over-period increase (decrease) Polyurethanes 16 % (5 )% (10 )% — Performance Products 27 % (3 )% (11 )% 2 % Advanced Materials 20 % (5 )% (19 )% 11 % (1) Excludes revenues from tolling arrangements, byproducts and raw materials.
Year ended December 31, 2023 vs 2022 Average selling prices (1) Local Foreign currency Sales Mix and currency translation impact volumes(2) other Period-over-period increase (decrease) Polyurethanes (10 )% (1 )% (10 )% (3 )% Performance Products (8 )% — (24 )% 1 % Advanced Materials 1 % — (18 )% 3 % (1) Excludes revenues from tolling arrangements, byproducts and raw materials.
The following matters are expected to have a significant impact on our liquidity: ● During 2023, we expect to spend between approximately $240 million to $250 million on capital expenditures.
The following matters are expected to have a significant impact on our liquidity: ● During 2024, we expect to spend approximately $200 million on capital expenditures.
The effect of a 1% change in three key assumptions is summarized as follows (dollars in millions): Statement of Balance sheet Assumptions operations(1) impact(2) Discount rate —1% increase $ (35 ) $ (227 ) —1% decrease 47 255 Expected long-term rates of return on plan assets —1% increase (31 ) — —1% decrease 31 — Rate of compensation increase —1% increase 9 24 —1% decrease (5 ) (22 ) (1) Estimated (decrease) increase on 2022 net periodic benefit cost (2) Estimated (decrease) increase on December 31, 2022 pension and postretirement liabilities and accumulated other comprehensive loss 37 Table of Contents
The effect of a 1% change in three key assumptions is summarized as follows (dollars in millions): Statement of Balance sheet Assumptions operations (1) impact (2) Discount rate —1% increase $ (16 ) $ (256 ) —1% decrease 18 302 Expected long-term rates of return on plan assets —1% increase (22 ) — —1% decrease 22 — Rate of compensation increase —1% increase 2 25 —1% decrease (5 ) (23 ) (1) Estimated (decrease) increase on 2023 net periodic benefit cost (2) Estimated (decrease) increase on December 31, 2023 pension and postretirement liabilities and accumulated other comprehensive loss 34 Table of Contents
Year Ended December 31, 2022 Compared with Year Ended December 31, 2021 For the year ended December 31, 2022, income from continuing operations attributable to Huntsman Corporation was $448 million, a decrease of $548 million from $996 million in the 2021 period.
Year Ended December 31, 2023 Compared with Year Ended December 31, 2022 For the year ended December 31, 2023, loss from continuing operations attributable to Huntsman Corporation was $17 million as compared with income of $448 million in the 2022 period.
The income tax expense of Huntsman International for the year ended December 31, 2022 decreased to $188 million from $192 million in the 2021 period. The decrease in income tax expense was primarily due to a decrease in income from continuing operations before income taxes offset by an increase in valuation allowance.
The income tax expense of Huntsman International for the year ended December 31, 2023 decreased to $65 million from $188 million in the 2022 period. The decrease in income tax expense was primarily due to the decrease in income from continuing operations before income taxes.
For 2022, adjusted EBITDA from Corporate and other for Huntsman Corporation increased by $21 million to a loss of $175 million from a loss of $196 million for 2021. For 2022, adjusted EBITDA from Corporate and other for Huntsman International increased by $18 million to a loss of $172 million from a loss of $190 million for 2021.
For 2023, adjusted EBITDA from Corporate and other for Huntsman Corporation increased by $12 million to a loss of $163 million from a loss of $175 million for 2022. For 2023, adjusted EBITDA from Corporate and other for Huntsman International increased by $12 million to a loss of $160 million from a loss of $172 million for 2022.
The increase in segment adjusted EBITDA was primarily due to increased sales revenue and margins, partially offset by higher fixed costs. Advanced Materials The increase in revenues in our Advanced Materials segment for 2022 compared to 2021 was primarily due to higher average selling prices, partially offset by lower sales volumes.
The decrease in segment adjusted EBITDA was primarily due to decreased sales volumes and lower average selling prices, partially offset by reduced fixed costs. Advanced Materials The decrease in revenues in our Advanced Materials segment for 2023 compared to 2022 was primarily due to lower sales volumes while average selling prices remained stable.
Income Taxes” to our consolidated financial statements. 30 Table of Contents Segment Analysis Year Ended December 31, 2022 Compared with Year Ended December 31, 2021 Percent change Year ended December 31, favorable (Dollars in millions) 2022 2021 (unfavorable) Revenues Polyurethanes $ 5,067 $ 5,019 1 % Performance Products 1,713 1,485 15 % Advanced Materials 1,277 1,198 7 % Total reportable segments’ revenues 8,057 7,702 5 % Intersegment eliminations (34 ) (32 ) NM Total $ 8,023 $ 7,670 5 % Huntsman Corporation Adjusted EBITDA (1) Polyurethanes $ 628 $ 879 (29 )% Performance Products 469 359 31 % Advanced Materials 233 204 14 % Total reportable segments’ adjusted EBITDA 1,330 1,442 (8 )% Corporate and other (175 ) (196 ) 11 % Total $ 1,155 $ 1,246 (7 )% Huntsman International Adjusted EBITDA (1) Polyurethanes $ 628 $ 879 (29 )% Performance Products 469 359 31 % Advanced Materials 233 204 14 % Total reportable segments’ adjusted EBITDA 1,330 1,442 (8 )% Corporate and other (172 ) (190 ) 9 % Total $ 1,158 $ 1,252 (8 )% NM—Not meaningful (1) For more information, including reconciliation of total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes of Huntsman Corporation or Huntsman International, as appropriate, see “Note 26.
Income Taxes” to our consolidated financial statements. 30 Table of Contents Segment Analysis Year Ended December 31, 2023 Compared with Year Ended December 31, 2022 Percent change Year ended December 31, favorable (Dollars in millions) 2023 2022 (unfavorable) Revenues Polyurethanes $ 3,865 $ 5,067 (24 )% Performance Products 1,178 1,713 (31 )% Advanced Materials 1,092 1,277 (14 )% Total reportable segments’ revenues 6,135 8,057 (24 )% Intersegment eliminations (24 ) (34 ) NM Total $ 6,111 $ 8,023 (24 )% Huntsman Corporation Adjusted EBITDA (1) Polyurethanes $ 248 $ 628 (61 )% Performance Products 201 469 (57 )% Advanced Materials 186 233 (20 )% Total reportable segments’ adjusted EBITDA 635 1,330 (52 )% Corporate and other (163 ) (175 ) 7 % Total $ 472 $ 1,155 (59 )% Huntsman International Adjusted EBITDA (1) Polyurethanes $ 248 $ 628 (61 )% Performance Products 201 469 (57 )% Advanced Materials 186 233 (20 )% Total reportable segments’ adjusted EBITDA 635 1,330 (52 )% Corporate and other (160 ) (172 ) 7 % Total $ 475 $ 1,158 (59 )% NM—Not meaningful (1) For more information, including reconciliation of total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes of Huntsman Corporation or Huntsman International, as appropriate, see “Note 26.
(2) Excludes sales volumes of byproducts and raw materials. Polyurethanes The increase in revenues in our Polyurethanes segment for 2022 compared to 2021 was primarily due to higher MDI average selling prices, partially offset by lower sales volumes and the negative impact of weaker major international currencies against the U.S. dollar.
(2) Excludes sales volumes of byproducts and raw materials. Polyurethanes The decrease in revenues in our Polyurethanes segment for 2023 compared to 2022 was primarily due to lower sales volumes, lower MDI average selling prices and the net negative impact of major foreign currency exchange rate movements against the U.S. dollar.
The decreases noted above were the result of the following items: ● Revenues for the year ended December 31, 2022 increased by $353 million, or 5%, as compared with the 2021 period. The increase was primarily due to higher average selling prices in all our segments, partially offset by lower sales volumes in all our segments.
The decreases noted above were the result of the following items: ● Revenues for the year ended December 31, 2023 decreased by $1,912 million, or 24%, as compared with the 2022 period. The decrease was primarily due to lower sales volumes in all our segments and lower average selling prices in all our segments, except for our Advanced Materials segment.
For the year ended December 31, 2022, income from continuing operations attributable to Huntsman International was $449 million, a decrease of $550 million from $999 million in the 2021 period.
For the year ended December 31, 2023, loss from continuing operations attributable to Huntsman International was $15 million, as compared with income of $449 million in the 2022 period.
Starting in the fourth quarter of 2021, we began to include income and costs associated with the Albemarle Settlement, net in our adjustments since such income and costs represents a one-time legal settlement and does not reflect our ongoing financial performance.
Starting in 2021, we began to include income and costs associated with the arbitration award we won in October 2021 in excess of $600 million against Albemarle Corporation (“Albemarle”) for fraud and breach of contract (the “Albemarle Settlement”), net in our adjustments since such income and costs represents a one-time legal settlement and does not reflect our ongoing financial performance.
See “—Segment Analysis” below. ● Gross profit for the year ended December 31, 2022 decreased by $38 million, or 2%, as compared with the 2021 period. The decrease resulted from lower gross profit in our Polyurethanes segment, partially offset by higher gross profits in our Performance Products and Advanced Materials segments.
See “—Segment Analysis” below. ● Gross profit for the year ended December 31, 2023 decreased by $640 million, or 41%, as compared with the 2022 period. The decrease resulted primarily from lower gross profits in all our segments.
The increase in free cash flow from continuing operations was primarily attributable to a decrease in cash used for capital expenditures during 2022 as compared with 2021, despite the decrease in cash provided by operating activities from continuing operations during 2022 as compared with 2021, which included a decrease of approximately $255 million in net proceeds associated with the Albemarle Settlement.
The decrease in free cash flow from continuing operations was primarily attributable to a decrease in cash provided by operating activities from continuing operations, partially offset by a decrease in cash used for capital expenditures during 2023 as compared with 2022.
(6) During the year ended December 31, 2022, we established a $49 million significant deferred tax asset valuation allowance in The Netherlands. We eliminated the effect of this significant change in deferred tax asset valuation allowances from our presentation of adjusted net income to allow investors to better compare our ongoing financial performance from period to period.
We eliminated the effect of these significant deferred tax asset valuation allowances from our presentation of adjusted net income to allow investors to better compare our ongoing financial performance from period to period.
Net cash used in investing activities from continuing operations for 2022 and 2021 was $260 million and $508 million, respectively. During 2022 and 2021, we paid $272 million and $326 million, respectively, for capital expenditures, including $100 million during 2021, on a new MDI splitter in Geismar, Louisiana.
Net cash provided by (used in) investing activities from continuing operations for 2023 and 2022 was $309 million and $(260) million, respectively. During 2023 and 2022, we paid $230 million and $272 million, respectively, for capital expenditures.
See “—Segment Analysis” below. ● Our operating expenses and the operating expenses of Huntsman International for the year ended December 31, 2022 decreased by $25 million and $22 million, respectively, or 3% for both, as compared with the 2021 period, primarily related to lower selling, general and administrative costs. ● Restructuring, impairment and plant closing costs for the year ended December 31, 2022 increased by $46 million, or 115%, as compared with the 2021 period.
See “—Segment Analysis” below. ● Our operating expenses, net and the operating expenses, net of Huntsman International for the year ended December 31, 2023 increased by $16 million and $17 million, respectively, or 2% for both, as compared with the 2022 period, primarily related to the negative impact of translating foreign currency amounts to the U.S. dollar and an increase in other operating expenses, partially offset by decreases in selling, general and administrative expenses and research and development expenses. ● Restructuring, impairment and plant closing costs for the year ended December 31, 2023 decreased by $68 million, or 79%, as compared with the 2022 period.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the SEC on February 15, 2022. 32 Selected Quarterly Financial Data For each of our Company and Huntsman International, the following tables set forth a summary of selected quarterly financial data for the years ended December 31, 2022 and 2021 (dollars in millions).
Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with the SEC on February 21, 2023.
The decrease in segment adjusted EBITDA was primarily due to lower sales volumes, lower MDI margins in Europe and Asia, the negative impact of weaker major international currencies against the U.S. dollar and lower equity earnings from our minority-owned joint venture in China.
The decrease in segment adjusted EBITDA was primarily due to lower sales volumes, lower MDI margins, the net negative impact of major foreign currency exchange rate movements against the U.S. dollar and a gain from an insurance settlement received in the second quarter of 2022, partially offset by higher equity earnings from our minority-owned joint venture in China and cost savings from our cost optimization programs.
We intend to renew, repay or extend the majority of these short-term facilities in the next twelve months. As of December 31, 2022, we had approximately $619 million of cash and cash equivalents, including restricted cash, held by our foreign subsidiaries, including our variable interest entities.
As of December 31, 2023, we had $12 million classified as current portion of debt, including debt at our variable interest entities of $9 million and certain other short-term facilities and scheduled amortization payments totaling $3 million. We intend to renew, repay or extend the majority of these short-term facilities in the next twelve months.
For an analysis of our segments’ results of operations for the fiscal years ended December 31, 2021 and 2020, see “Part II. Item 7.
Cash Flows For Year Ended December 31, 2022 Compared with Year Ended December 31, 2021 For a comparison of our cash flows for the fiscal years ended December 31, 2022 and 2021, see “Part II. Item 7.
The decrease was primarily attributable to a decrease in income at our PO/MTBE joint venture in China, in which we hold a 49% interest. ● Fair values adjustments to our investment in Venator and the related option to sell our remaining Venator shares was a net loss of $12 million for the year ended December 31, 2022 as compared with a net loss of $28 million in the 2021 period.
Restructuring, Impairment and Plant Closing Costs” to our consolidated financial statements. ● Equity in income of investment in unconsolidated affiliates for the year ended December 31, 2023 increased to $83 million from $67 million in the 2022 period, primarily related to an increase in income at our PO/MTBE joint venture with China, in which we hold a 49% interest. ● We recorded a loss of $5 million in fair value adjustments to our investment in Venator for the year ended December 31, 2023 compared to a loss of $12 million in the 2022 period.
(7) For details regarding the tax impacts of our non-GAAP adjustments, please see the reconciliation of our net income to adjusted net income noted above.
(7) For details regarding the tax impacts of our non-GAAP adjustments, please see the reconciliation of our net income to adjusted net income noted above. 28 Table of Contents Non-GAAP Financial Measures Our consolidated financial statements are prepared in accordance with U.S. GAAP, which we supplement with certain non-GAAP financial information.
Total assets and liabilities held for sale as of December 31, 2022 are classified as current as we anticipate the sale of our Textile Effects Business will close in February 2023. For more information, see “Note 4. Discontinued Operations and Business Dispositions—Discontinued Operations—Sale of Textile Effects Business” to our consolidated financial statements.
For more information, see “Note 4. Discontinued Operations and Business Dispositions—Discontinued Operations—Sale of Textile Effects Business” to our consolidated financial statements.
However, such repatriation may potentially be subject to limited foreign withholding taxes. For more information regarding our debt, see “Note 14.
Nevertheless, we could repatriate additional cash as dividends and the repatriation of cash as a dividend would generally not be subject to U.S. taxation. However, such repatriation may potentially be subject to limited foreign withholding taxes. For more information regarding our debt, see “Note 14.
Associated with this program, we expect cash costs of approximately $65 million, including approximately $15 million of capital expenditures, through 2024. ● On April 29, 2022, a New Orleans jury awarded us approximately $94 million in our long-running court battle against Praxair/Linde, one of the industrial gas suppliers to our Geismar, Louisiana MDI manufacturing site.
Aside from the extended maturity dates, these amendments to our A/R Programs secured substantially similar terms as those in the prior agreements. ` ● On April 29, 2022, a New Orleans jury awarded us approximately $94 million in our long-running court battle against Praxair/Linde, one of the industrial gas suppliers to our Geismar, Louisiana MDI manufacturing site.
MDI average selling prices increased in Europe and the Americas regions. Sales volumes decreased due to lower demand across all our regions and across all markets, other than automotive.
Sales volumes decreased primarily due to lower demand, primarily in the Americas. MDI average selling prices decreased primarily due to less favorable supply and demand dynamics.
Although sales volumes increased in our aerospace market, overall sales volumes decreased due to lower volumes in our non-aerospace markets resulting from deselection of lower margin business and weaker end market demand, particularly in the fourth quarter of 2022. The increase in segment adjusted EBITDA was primarily due to higher sales prices and improved sales mix.
Sales volumes decreased primarily due to reduced customer demand in our infrastructure markets and the deselection of lower margin business. The decrease in segment adjusted EBITDA was primarily due to lower sales volumes.
With the exception of certain amounts that we expect to repatriate in the foreseeable future, we intend to use cash held in our foreign subsidiaries to fund our local operations. Nevertheless, we could repatriate additional cash as dividends and the repatriation of cash as a dividend would generally not be subject to U.S. taxation.
As of December 31, 2023, we had approximately $529 million of cash and cash equivalents, including restricted cash, held by our foreign subsidiaries, including our variable interest entities. With the exception of certain amounts that we expect to repatriate in the foreseeable future, we intend to use cash held in our foreign subsidiaries to fund our local operations.
Average selling prices increased across all product lines primarily in response to an increase in raw material costs. Sales volumes decreased across all regions primarily due to slowing construction activity, fewer wind power installations in China and reduced demand in the coatings, adhesives and other industrial markets.
Performance Products The decrease in revenues in our Performance Products segment for 2023 compared to 2022 was primarily due to lower sales volumes and lower average selling prices. Sales volumes decreased in all regions primarily due to slowing construction activity and reduced demand in coatings and adhesives, agriculture, lubes and other industrial markets.
The increase in adjusted EBITDA from Corporate and other resulted primarily from an increase in unallocated foreign currency exchange gains and a decrease in corporate overhead costs and LIFO valuation losses.
The increase in adjusted EBITDA from Corporate and other resulted primarily from an increase in LIFO valuation gains and a decrease in corporate overhead costs and minority interest expense, partially offset by a decrease in unallocated foreign currency exchange gains. 31 Year Ended December 31, 2022 Compared with Year Ended December 31, 2021 For a comparison of both our results of operations and segment analysis for the fiscal years ended December 31, 2022 and 2021, see “Part II.
The increase in free cash flow from continuing operations was primarily attributable to the increase in cash provided by operating activities from continuing operations, including $332.5 million in proceeds associated with the Albemarle Settlement, partially offset by an increase in cash used for capital expenditures during 2021 as compared with 2020. 34 Table of Contents Changes in Financial Condition The following information summarizes our working capital (dollars in millions): December 31, December 31, (Decrease) Percent 2022 2021 increase change Cash and cash equivalents $ 654 $ 1,041 $ (387 ) (37 )% Accounts and notes receivable, net 834 1,015 (181 ) (18 )% Inventories 995 1,038 (43 ) (4 )% Receivable associated with the Albemarle Settlement — 333 (333 ) (100 )% Other current assets 190 155 35 23 % Current assets held for sale (1) 472 346 126 36 % Total current assets 3,145 3,928 (783 ) (20 )% Accounts payable 961 1,114 (153 ) (14 )% Accrued liabilities 429 713 (284 ) (40 )% Current portion of debt 66 12 54 450 % Current operating lease liabilities 51 49 2 4 % Current liabilities held for sale (1) 194 163 31 19 % Total current liabilities 1,701 2,051 (350 ) (17 )% Working capital $ 1,444 $ 1,877 $ (433 ) (23 )% (1) Held for sale assets and liabilities are those of our Textile Effects Business.
Changes in Financial Condition The following information summarizes our working capital (dollars in millions): December 31, December 31, (Decrease) Percent 2023 2022 increase change Cash and cash equivalents $ 540 $ 654 $ (114 ) (17 )% Accounts and notes receivable, net 753 834 (81 ) (10 )% Inventories 867 995 (128 ) (13 )% Other current assets 154 190 (36 ) (19 )% Current assets held for sale (1) — 472 (472 ) (100 )% Total current assets 2,314 3,145 (831 ) (26 )% Accounts payable 719 961 (242 ) (25 )% Accrued liabilities 395 429 (34 ) (8 )% Current portion of debt 12 66 (54 ) (82 )% Current operating lease liabilities 46 51 (5 ) (10 )% Current liabilities held for sale (1) — 194 (194 ) (100 )% Total current liabilities 1,172 1,701 (529 ) (31 )% Working capital $ 1,142 $ 1,444 $ (302 ) (21 )% (1) Total assets and liabilities held for sale as of December 31, 2022 are classified as current because we completed the sale of our Textile Effects Business on February 28, 2023.
See also “—Cash Flows Year Ended December 31, 2022 Compared with Year Ended December 31, 2021.” ● Accounts and notes receivable, net decreased by $181 million primarily due to lower revenues in the fourth quarter of 2022 compared to the fourth quarter of 2021. ● Inventories decreased by $43 million primarily due to lower inventory costs and volumes. ● Receivable associated with the Albemarle Settlement decreased to nil due to the receipt of the final arbitration award payment of $332.5 million during the second quarter of 2022. ● Accounts payable decreased by $153 million primarily due to lower inventory purchases. ● Accrued liabilities decreased by $284 million primarily due to lower accrued compensation, current income taxes and approximately $200 million of legal fees associated with the Albemarle Settlement, offset by an increase in restructuring and plant closing reserves. ● Current portion of debt increased by $54 million primarily due to net borrowings of $55 million under our 2022 Revolving Credit Facility that are classified as short term. 35 Table of Contents Short-Term Liquidity We depend upon our cash, our 2022 $1.2 billion senior unsecured revolving credit facility (“2022 Revolving Credit Facility”), our U.S. accounts receivable securitization program (“U.S.
See also “—Cash Flows Year Ended December 31, 2023 Compared with Year Ended December 31, 2022.” ● Accounts and notes receivable, net decreased by $81 million primarily due to lower revenues in the fourth quarter of 2023 compared to the fourth quarter of 2022. ● Inventories decreased by $128 million primarily due to lower inventory costs and volumes. ● Other current assets decreased by $36 million primarily due to amortization of deferred charges related to insurance premiums and a decrease in current income taxes receivable. ● Accounts payable decreased by $242 million primarily due to lower inventory purchases. ● Accrued liabilities decreased by $34 million primarily due to a decrease in accrued compensation costs and accrued restructuring costs. ● Current portion of debt decreased by $54 million primarily due to the repayment in full of the outstanding balance under our 2022 Revolving Credit Facility. 32 Table of Contents Short-Term Liquidity We depend upon our cash, our 2022 Revolving Credit Facility, our A/R Programs and other debt instruments to provide liquidity for our operations and working capital needs.
(4) The income tax impacts, if any, are computed on the pre-tax adjustments using a with and without approach. (5) In addition to income tax impacts, this adjusting item is also impacted by depreciation and amortization expense and interest expense.
(5) In addition to income tax impacts, this adjusting item is also impacted by depreciation and amortization expense and interest expense. (6) During the years ended December 31, 2023 and 2022, we established a $14 million and a $49 million significant deferred tax asset valuation allowance in the U.K. and the Netherlands, respectively.
Discontinued Operations and Business Dispositions—Separation and Deconsolidation of Venator” to our consolidated financial statements. ● Loss on early extinguishment of debt was nil for the year ended December 31, 2022 as compared with $27 million in the 2021 period, primarily due to the redemption in full of our 2022 Senior Notes in the second quarter of 2021. See “Note. 14.
Discontinued Operations and Business Dispositions—Separation and Deconsolidation of Venator” to our consolidated financial statements. ● Our other income, net for the year ended December 31, 2023 was $2 million as compared with $35 million in the 2022 period, and the other income, net of Huntsman International for the year ended December 31, 2023 was $2 million as compared with $34 million in the 2022 period, primarily related to an increase in certain periodic pension costs, partially offset by a decrease in certain legal related expenses. ● Our income tax expense for the year ended December 31, 2023 decreased to $64 million from $186 million in the 2022 period.
During 2021, we received $43 million for the sale of businesses, primarily due to the receipt of $28 million pursuant to an earnout provision in connection with the sale of our India-based DIY business. See “Note 4. Discontinued Operations and Business Dispositions—Sale of India-Based Do-It-Yourself Consumer Adhesives Business” to our consolidated financial statements.
During 2023, we received $544 million for the sale of businesses, net, primarily related to net proceeds of $530 million from the sale of our Textile Effects Business. See “See “Note 4. Discontinued Operations—Sale of Textile Effects Business” to our consolidated financial statements. Net cash used in financing activities for 2023 and 2022 was $620 million and $994 million, respectively.
A/R Program”) and European accounts receivable securitization program (“EU A/R Program” and collectively with the U.S. A/R Program, “A/R Programs”) and other debt instruments to provide liquidity for our operations and working capital needs.
A/R Program”) and European accounts receivable securitization program (“EU A/R Program” and collectively with the U.S. A/R Program, “A/R Programs”). During 2022, we had net borrowings of $219 million under our 2022 Revolving Credit Facility. Free cash flow from continuing operations for 2023 and 2022 were proceeds of cash of $21 million and $620 million, respectively.
(3) Includes costs associated with transition activities relating primarily to our Corporate program to optimize our global approach to leverage shared services capabilities as well as our 2020 acquisition of CVC Thermoset Specialties, a North American specialty chemical manufacturer serving the industrial composites, adhesives and coatings markets (“CVC Thermoset Specialties Acquisition”).
(3) Includes costs associated with transition activities relating primarily to our Corporate program to optimize our global approach to leverage shared services capabilities and managed services in various information technology functions. (4) The income tax impacts, if any, are computed on the pre-tax adjustments using a with and without approach.
Net cash used in financing activities for 2022 and 2021 was $994 million and $977 million, respectively. During 2022 and 2021, we paid $1,005 million and $200 million for repurchases of our common stock, respectively. During 2022, we had net borrowings of $219 million under our 2022 Revolving Credit Facility.
During 2023 and 2022, we paid $349 million and $1,005 million for repurchases of our common stock, respectively. During 2023, we repaid $51 million against the outstanding balances under our 2022 $1.2 billion senior unsecured revolving credit facility (“2022 Revolving Credit Facility”) and our U.S. accounts receivable securitization program (“U.S.
Removed
(8) Represents net cash proceeds received in connection with the arbitration award we won on October 28, 2021 in excess of $600 million against Albemarle Corporation (“Albemarle”) for fraud and breach of contract (the “Albemarle Settlement”). On November 4, 2021, Albemarle agreed to waive any appeal and pay $665 million to us.
Added
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with the SEC on February 21, 2023.
Removed
(9) Represents the taxes paid in connection with the sale of the Chemical Intermediates Businesses and the sale of the India-based DIY business. For more information, see “Note 4. Discontinued Operations and Business Dispositions” to our consolidated financial statements. 28 Table of Contents Non-GAAP Financial Measures Our consolidated financial statements are prepared in accordance with U.S.
Added
L iquidity and C apital R esources The following is a discussion of our liquidity and capital resources and generally does not include separate information with respect to Huntsman International in accordance with General Instruction I of Form 10-K.
Removed
Restructuring, Impairment and Plant Closing Costs” to our consolidated financial statements. ● Interest expense, net for the year ended December 31, 2022 decreased by $5 million, or 7%, as compared with the 2021 period, primarily related to the redemption in full of our 2021 Senior Notes in the first quarter of 2021. ● Equity in income of investment in unconsolidated affiliates for the year ended December 31, 2022 decreased to $67 million from $143 million in the 2021 period.
Added
We expect to fund capital expenditures with cash provided by operations. ● During 2024, we expect to make contributions to our pension and postretirement benefit plans of approximately $34 million. ● As of December 31, 2023, we have approximately $547 million remaining under the authorization of our existing share repurchase program.
Removed
Debt—Notes” to our consolidated financial statements. ● (Costs) income associated with the Albemarle Settlement, net was $(3) million for the year ended December 31, 2022 as compared with $465 million for the year ended December 31, 2021 and was related to the arbitration award we won on October 28, 2021 in excess of $600 million against Albemarle for fraud and breach of contract. ● Our income tax expense for the year ended December 31, 2022 decreased to $186 million from $191 million in the 2021 period.
Added
Repurchases may be commenced or suspended from time to time without prior notice. ● On January 31, 2024, we completed the planned separation and acquisition of assets of SLIC, our manufacturing joint venture with BASF and three Chinese chemical companies.
Removed
These negative impacts were partially offset by lower fixed costs across all regions and higher MDI margins in the Americas. 31 Performance Products The increase in revenues in our Performance Products segment for 2022 compared to 2021 was due to higher average selling prices, partially offset by lower sales volumes.
Added
The final purchase price of the acquired assets will be determined based on an asset valuation, which we currently expect to be completed in the first quarter of 2024. The acquisition of the assets were funded in part with HPS issuing a note payable at closing of approximately $230 million, which is subject to change pending the final valuation.
Removed
Average selling prices increased across all of our end market segments primarily in response to higher raw material, energy and logistics costs as well as improved sales mix.
Added
As of January 31, 2024, we made a cash payment of approximately $26 million against the note payable. The remainder of the note payable will be paid off in cash in future quarters. The future proceeds of the acquisition received by SLIC will be distributed back to the respective joint venture partners upon liquidation of the joint venture.
Removed
Year Ended December 31, 2021 Compared with Year Ended December 31, 2020 For the year ended December 31, 2021, income from continuing operations attributable to Huntsman Corporation was $996 million, an increase of $739 million from $257 million in the 2020 period.
Added
We anticipate that the liquidation will occur by mid-2025. ● On February 28, 2023, we completed the sale of our Textile Effects Business to Archroma for a purchase price of $593 million, which included estimated adjustments to the purchase price for working capital plus the assumption of underfunded pension liabilities.
Removed
For the year ended December 31, 2021, income from continuing operations attributable to Huntsman International was $999 million, an increase of $741 million from $258 million in the 2020 period.
Added
The final purchase price is subject to customary post-closing adjustments, which are anticipated to be complete in the first quarter of 2024. During 2023, we have paid cash taxes of approximately $23 million, and we expect to pay additional cash taxes of approximately $15 million. See “Note 4.
Removed
The increases noted above were the result of the following items: ● Revenues for the year ended December 31, 2021 increased by $2,249 million, or 41%, as compared with the 2020 period.
Added
Discontinued Operations and Business Dispositions—Discontinued Operations—Sale of Textile Effects Business” to our consolidated financial statements. ● During 2020 and 2021, management implemented cost realignment and synergy plans and, in November 2022, committed to further plans to realign our cost structure with additional restructuring in Europe, including exiting and consolidating certain facilities, workforce relocation to lower cost locations and further personnel rationalization.
Removed
The increase was primarily due to higher average selling prices as well as higher sales volumes in all our segments. ● Gross profit for the year ended December 31, 2021 increased by $607 million, or 62%, as compared with the 2020 period.
Added
In connection with these plans, we have achieved combined annualized cost savings and synergy benefits in excess of $280 million. Associated with these plans, we expect total cash costs of approximately $285 million (including approximately $56 million of capital expenditures) through 2025, of which we have spent approximately $230 million through 2023 (including approximately $34 million of capital expenditures).
Removed
The increase resulted from higher gross profits in all our segments. ● Our operating expenses and the operating expenses of Huntsman International for the year ended December 31, 2021 increased by $309 million and $308 million, respectively, or 61% and 62%, respectively, as compared with the 2020 period, primarily related to higher selling, general and administrative costs and the gain on sale of our India-based DIY business in 2020.
Added
Of the remaining cash costs, the majority will be payments related to our restructuring in Europe, primarily for personnel who have exited as of the end of 2023 as well as capital expenditures related to our research and development footprint, which is included in our overall future capital expenditures projections.
Removed
Discontinued Operations and Business Dispositions—Sale of India-Based-Do-It-Yourself Consumer Adhesives Business” to our consolidated financial statements. ● Our interest expense, net and the interest expense, net of Huntsman International for the year ended December 31, 2021, decreased by $19 million and $21 million, respectively, or 22% and 24%, respectively, as compared with the 2020 period, primarily related to the redemption in full of our 2021 Senior Notes in the first quarter of 2021. ● Equity in income of investment in unconsolidated affiliates for the year ended December 31, 2021 increased to $143 million from $42 million in the 2020 period.
Added
Long-Term Liquidity ● On January 22, 2024, we entered into an amendment to our U.S. A/R Program that extended the scheduled maturity date of our U.S. A/R Program from July 2024 to January 2027.
Removed
The increase was primarily attributable to an increase in income at our PO/MTBE joint venture in China, in which we hold a 49% interest. ● Fair value adjustments to our investment in Venator and the related option to sell our remaining Venator shares and the related loss on disposal was a net loss of $28 million for the year ended December 31, 2021 as compared with a net loss of $88 million in the 2020 period.

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Other HUN 10-K year-over-year comparisons