Huntsman Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

OTHER COMPREHENSIVE (LOSS) INCOME

OTHER COMPREHENSIVE (LOSS) INCOME

12 Months Ended

Dec. 31, 2019

OTHER COMPREHENSIVE (LOSS) INCOME

OTHER COMPREHENSIVE INCOME

25. OTHER COMPREHENSIVE (LOSS) INCOME

Other comprehensive loss consisted of the following (dollars in millions):

Huntsman Corporation


			Pension and		Other
	Foreign		other		comprehensive						Amounts		Amounts
	currency		postretirement		income of						attributable to		attributable to
	translation		benefits		unconsolidated						noncontrolling		Huntsman
	adjustment(a)		adjustments(b)		affiliates		Other, net		Total		interests		Corporation
Beginning balance, January 1, 2019	$	(371)	$	(994)	$	8	$	5	$	(1,352)	$	36	$	(1,316)
Other comprehensive (loss) income before reclassifications, gross		—		(112)		—		(1)		(113)		5		(108)
Tax benefit		2		25		—		—		27		—		27
Amounts reclassified from accumulated other comprehensive loss, gross(c)		—		62		—		—		62		—		62
Tax expense		—		(12)		—		—		(12)		—		(12)
Net current-period other comprehensive (loss) income		2		(37)		—		(1)		(36)		5		(31)
Acquisition of noncontrolling interest		—		—		—		—		—		(15)		(15)
Ending balance, December 31, 2019	$	(369)	$	(1,031)	$	8	$	4	$	(1,388)	$	26	$	(1,362)

(a)	Amounts are net of tax of $68 and $71 as of December 31, 2019 and January 1, 2019, respectively.

(b)	Amounts are net of tax of $148 and $135 as of December 31, 2019 and January 1, 2019, respectively.

(c)	See table below for details about these reclassifications.


			Pension and		Other
	Foreign		other		comprehensive						Amounts		Amounts
	currency		postretirement		income of						attributable to		attributable to
	translation		benefits		unconsolidated						noncontrolling		Huntsman
	adjustment(a)		adjustments(b)		affiliates		Other, net		Total		interests		Corporation
Beginning balance, January 1, 2018	$	(249)	$	(1,189)	$	3	$	24	$	(1,411)	$	143	$	(1,268)
Cumulative effect of changes in fair value of equity investments		—		—		—		(10)		(10)		—		(10)
Revised beginning balance, January 1, 2018		(249)		(1,189)		3		14		(1,421)		143		(1,278)
Other comprehensive (loss) income before reclassifications, gross		(186)		(130)		—		—		(316)		47		(269)
Tax expense (benefit)		(6)		27		—		(3)		18		—		18
Amounts reclassified from accumulated other comprehensive loss, gross(c)		—		77		—		—		77		—		77
Tax expense		—		(13)		—		(6)		(19)		—		(19)
Net current-period other comprehensive (loss) income		(192)		(39)		—		(9)		(240)		47		(193)
Disposition of a portion of Venator		—		—		—		—		—		(5)		(5)
Deconsolidation of Venator		70		285		5		—		360		(149)		211
Tax expense		—		(51)		—		—		(51)		—		(51)
Ending balance, December 31, 2018	$	(371)	$	(994)	$	8	$	5	$	(1,352)	$	36	$	(1,316)

(a)	Amounts are net of tax of $71 and $65 as of December 31, 2018 and January 1, 2018, respectively.

(b)	Amounts are net of tax of $135 and $172 as of December 31, 2018 and January 1, 2018, respectively.

(c)	See table below for details about these reclassifications.


	Amounts reclassified
	from accumulated
	other
	comprehensive loss						Affected line item in
Details about Accumulated Other	Year ended December 31,						where net income
Comprehensive Loss Components(a):	2019		2018		2017		is presented
Amortization of pension and other postretirement benefits:
Prior service credit	$	(11)	$	(12)	$	(15)	(b)
Settlement loss		1		2		—
Actuarial loss		72		87		95	(b)(c)
		62		77		80	Total before tax
		(12)		(13)		(14)	Income tax expense
Total reclassifications for the period	$	50	$	64	$	66	Net of tax

(a)	Pension and other postretirement benefits amounts in parentheses indicate credits on our consolidated statements of operations.

(b)	These accumulated other comprehensive loss components are included in the computation of net periodic pension costs. See “Note 19. Employee Benefit Plans.”

(c)	Amounts contain approximately $7, $22 and $22 of prior service credit and actuarial loss related to discontinued operations for the years ended December 31, 2019, 2018 and 2017, respectively.

Huntsman International


	Foreign currency translation adjustment(a)		Pension and other postretirement benefits adjustments(b)		Other comprehensive income of unconsolidated affiliates		Other, net		Total		Amounts attributable to noncontrolling interests		Amounts attributable to Huntsman International
Beginning balance, January 1, 2019	$	(376)	$	(977)	$	8	$	1	$	(1,344)	$	36	$	(1,308)
Other comprehensive (loss) income before reclassifications, gross		—		(113)		—		(1)		(114)		5		(109)
Tax benefit		2		25		—		—		27		—		27
Amounts reclassified from accumulated other comprehensive loss, gross(c)		—		65		—		—		65		—		65
Tax expense		—		(12)		—		—		(12)		—		(12)
Net current-period other comprehensive (loss) income		2		(35)		—		(1)		(34)		5		(29)
Acquisition of noncontrolling interest		—		—		—		—		—		(15)		(15)
Ending balance, December 31, 2019	$	(374)	$	(1,012)	$	8	$	—	$	(1,378)	$	26	$	(1,352)

(a)	Amounts are net of tax of $55 and $57 as of December 31, 2019 and January 1, 2019, respectively.

(b)	Amounts are net of tax of $174 and $161 as of December 31, 2019 and January 1, 2019, respectively.

(c)	See table below for details about these reclassifications.


	Foreign currency translation adjustment(a)		Pension and other postretirement benefits adjustments(b)		Other comprehensive income of unconsolidated affiliates		Other, net		Total		Amounts attributable to noncontrolling interests		Amounts attributable to Huntsman International
Beginning balance, January 1, 2018	$	(252)	$	(1,174)	$	3	$	17	$	(1,406)	$	143	$	(1,263)
Cumulative effect of changes in fair value of equity investments		—		—		—		(10)		(10)		—		(10)
Revised beginning balance, January 1, 2018		(252)		(1,174)		3		7		(1,416)		143		(1,273)
Other comprehensive (loss) income before reclassifications, gross		(188)		(130)		—		—		(318)		47		(271)
Tax expense (benefit)		(6)		27		—		(1)		20		—		20
Amounts reclassified from accumulated other comprehensive loss, gross(c)		—		80		—		—		80		—		80
Tax expense		—		(14)		—		(5)		(19)		—		(19)
Net current-period other comprehensive (loss) income		(194)		(37)		—		(6)		(237)		47		(190)
Disposition of a portion of Venator		—		—		—		—		—		(5)		(5)
Deconsolidation of Venator		70		285		5		—		360		(149)		211
Tax expense		—		(51)		—		—		(51)		—		(51)
Ending balance, December 31, 2018	$	(376)	$	(977)	$	8	$	1	$	(1,344)	$	36	$	(1,308)

(a)	Amounts are net of tax of $57 and $51 as of December 31, 2018 and January 1, 2018, respectively.

(b)	Amounts are net of tax of $161 and $199 as of December 31, 2018 and January 1, 2018, respectively.

(c)	See table below for details about these reclassifications.


	Amounts reclassified
	from accumulated
	other
	comprehensive loss						Affected line item in
Details about Accumulated Other	Year ended December 31,						where net income
Comprehensive Loss Components(a):	2019		2018		2017		is presented
Amortization of pension and other postretirement benefits:
Prior service credit	$	(11)	$	(12)	$	(15)	(b)
Settlement loss		1		2		—
Actuarial loss		75		90		101	(b)(c)
		65		80		86	Total before tax
		(12)		(14)		(15)	Income tax expense
Total reclassifications for the period	$	53	$	66	$	71	Net of tax

(a)	Pension and other postretirement benefits amounts in parentheses indicate credits on our consolidated statements of operations.

(b)	These accumulated other comprehensive loss components are included in the computation of net periodic pension costs. See “Note 19. Employee Benefit Plans.”

(c)	Amounts contain approximately $7 and $22 and $29 of prior service credit and actuarial loss related to discontinued operations for the years ended December 31, 2019, 2018 and 2017, respectively.

Items of other comprehensive income (loss) of our Company and our consolidated affiliates have been recorded net of tax, with the exception of the foreign currency translation adjustments related to subsidiaries with earnings permanently reinvested. The tax effect is determined based upon the jurisdiction where the income or loss was recognized and is net of valuation allowances.