ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾

Quarterly report pursuant to Section 13 or 15(d)

BUSINESS COMBINATIONS

� v2.3.0.11
BUSINESS COMBINATIONS
 6 Months Ended
Jun. 30, 2011
BUSINESS COMBINATIONS Ìý
BUSINESS COMBINATIONS

3. BUSINESS COMBINATIONS

LAFFANS ACQUISITION

ÌýÌýÌýÌýÌýÌýÌýÌýOn AprilÌý2, 2011, we completed the acquisition of the chemical business of Laffans Petrochemicals Limited ("Laffans"), an amines and surfactants manufacturer located in Ankleshwar, India (the "Laffans Acquisition"). The acquisition cost of approximately $23Ìýmillion remains subject to finalization of closing working capital. The acquired business has been integrated into our Performance Products segment. Transaction costs charged to expense related to this acquisition were not significant.

ÌýÌýÌýÌýÌýÌýÌýÌýWe have accounted for the Laffans Acquisition using the acquisition method. As such, we analyzed the fair value of tangible and intangible assets acquired and liabilities assumed. The preliminary allocation of acquisition cost to the assets acquired and liabilities assumed is summarized as follows (dollars in millions):

Acquisition cost

 Ìý $ 23 Ìý
Ìý Ìý Ìý Ìý

Fair value of assets acquired and liabilities assumed:

 Ìý Ìý Ìý Ìý
Ìý

Accounts receivable

 Ìý $ 10 Ìý
Ìý

Inventories

 Ìý Ìý 2 Ìý
Ìý

Other current assets

 Ìý Ìý 2 Ìý
Ìý

Property, plant and equipment

 Ìý Ìý 14 Ìý
Ìý

Accounts payable

 Ìý Ìý (3 )
Ìý

Accrued liabilities

 Ìý Ìý (1 )
Ìý

Other noncurrent liabilities

 Ìý Ìý (1 )
Ìý Ìý Ìý Ìý

Total fair value of net assets acquired

 Ìý $ 23 Ìý
Ìý Ìý Ìý Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýThe acquisition cost allocation is preliminary pending final determination of the fair value of assets acquired and liabilities assumed, including final valuation of property, plant and equipment, intangible assets and the determination of related deferred taxes. For purposes of this preliminary allocation of fair value, we have assigned any excess of the acquisition cost of historical carrying values to property, plant and equipment and no amounts have been allocated to goodwill. It is possible that changes to this allocation could occur.

ÌýÌýÌýÌýÌýÌýÌýÌýIf this acquisition were to have occurred on JanuaryÌý1, 2010, the following estimated pro forma revenues and net income (loss) attributable to ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Corporation and ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International would have been reported (dollars in millions):

ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Corporation

Ìý
 Ìý Pro Forma Ìý
Ìý
 Ìý Three Months Ended
JuneÌý30,		 Ìý Six Months Ended
JuneÌý30, 		Ìý
Ìý
 Ìý 2010 Ìý 2011 Ìý 2010 Ìý

Revenues

 Ìý $ 2,355 Ìý $ 5,627 Ìý $ 4,461 Ìý

Net income (loss) attributable to ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Corporation

 Ìý Ìý 114 Ìý Ìý 177 Ìý Ìý (58 )

ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International

Ìý

Ìý
 Ìý Pro Forma Ìý
Ìý
 Ìý Three Months Ended
JuneÌý30,		 Ìý Six Months Ended
JuneÌý30, 		Ìý
Ìý
 Ìý 2010 Ìý 2011 Ìý 2010 Ìý

Revenues

 Ìý $ 2,355 Ìý $ 5,627 Ìý $ 4,461 Ìý

Net income attributable to ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International

 Ìý Ìý 117 Ìý Ìý 181 Ìý Ìý 91 Ìý