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

Annual report pursuant to Section 13 and 15(d)

Note 24 - Accumulated Other Comprehensive (Loss) Income

Note 24 - Accumulated Other Comprehensive (Loss) Income

12 Months Ended

Dec. 31, 2021

Comprehensive Income (Loss) Note [Text Block]

24. ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

The components of other comprehensive (loss) income and changes in accumulated other comprehensive loss by component were as follows (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, 2021	$	(328	)	$	(1,050	)	$	8	$	4	$	(1,366	)	$	20		$	(1,346	)
Other comprehensive loss before reclassifications, gross		(91	)		229			—		2		140			(7	)		133
Tax benefit		(1	)		(54	)		—		—		(55	)		—			(55	)
Amounts reclassified from accumulated other comprehensive loss, gross(c)		—			83			—		—		83			—			83
Tax expense		—			(18	)		—		—		(18	)		—			(18	)
Net current-period other comprehensive (loss) income		(92	)		240			—		2		150			(7	)		143
Ending balance, December 31, 2021	$	(420	)	$	(810	)	$	8	$	6	$	(1,216	)	$	13		$	(1,203	)

(a)	Amounts are net of tax of $56 million for both December 31, 2021 and January 1, 2021.

(b)	Amounts are net of tax of $81 million and $153 million as of December 31, 2021 and January 1, 2021, 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, 2020	$	(369	)	$	(1,031	)	$	8	$	4	$	(1,388	)	$	26		$	(1,362	)
Other comprehensive income (loss) before reclassifications, gross		29			(135	)		—		—		(106	)		(6	)		(112	)
Tax benefit		12			30			—		—		42			—			42
Amounts reclassified from accumulated other comprehensive loss, gross(c)		—			111			—		—		111			—			111
Tax expense		—			(25	)		—		—		(25	)		—			(25	)
Net current-period other comprehensive income (loss)		41			(19	)		—		—		22			(6	)		16
Ending balance, December 31, 2020	$	(328	)	$	(1,050	)	$	8	$	4	$	(1,366	)	$	20		$	(1,346	)

(a)	Amounts are net of tax of $56 million and $68 million as of December 31, 2020 and January 1, 2020, respectively.

(b)	Amounts are net of tax of $153 million and $148 million as of December 31, 2020 and January 1, 2020, 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):	*2021*			*2020*			*2019*				*is presented*
Amortization of pension and other postretirement benefits:
Prior service credit	$	(12	)	$	(12	)	$	(11	)	(b)(d)	Other income, net
Settlement loss		3			43			1		(b)(c)	Other income, net
Curtailment gain		—			(2	)		—		(c)	Other income, net
Actuarial loss		92			82			72		(b)(d)	Other income, net
		83			111			62			Total before tax
		(18	)		(25	)		(12	)		Income tax expense
Total reclassifications for the period	$	65		$	86		$	50			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 18. Employee Benefit Plans.”

(c)	In connection with the sale of our Chemical Intermediates Businesses, we recognized $41 million of pension and other postemployment benefit settlement losses during the year ended December 31, 2020.
(d)	Amounts contain approximately $6 million, $5 million and $7 million of prior service credit and actuarial loss related to discontinued operations for the years ended December 31, 2021, 2020 and 2019, respectively.

Huntsman International

				*Pension*			*Other*
	*Foreign*			*and 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*			*International*
Beginning balance, January 1, 2021	$	(333	)	$	(1,028	)	$	8	$	—	$	(1,353	)	$	20		$	(1,333	)
Other comprehensive income (loss) before reclassifications, gross		(90	)		229			—		2		141			(7	)		134
Tax benefit		(1	)		(56	)		—		—		(57	)		—			(57	)
Amounts reclassified from accumulated other comprehensive loss, gross(c)		—			86			—		—		86			—			86
Tax expense		—			(17	)		—		—		(17	)		—			(17	)
Net current-period other comprehensive (loss) income		(91	)		242			—		2		153			(7	)		146
Ending balance, December 31, 2021	$	(424	)	$	(786	)	$	8	$	2	$	(1,200	)	$	13		$	(1,187	)

(a)	Amounts are net of tax of $43 million for both December 31, 2021 and January 1, 2021.

(b)	Amounts are net of tax of $105 million and $178 million as of December 31, 2021 and January 1, 2021, respectively.

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

				*Pension*			*Other*
	*Foreign*			*and 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*			*International*
Beginning balance, January 1, 2020	$	(374	)	$	(1,012	)	$	8	$	—	$	(1,378	)	$	26		$	(1,352	)
Other comprehensive income (loss) before reclassifications, gross		29			(135	)		—		—		(106	)		(6	)		(112	)
Tax benefit		12			30			—		—		42			—			42
Amounts reclassified from accumulated other comprehensive loss, gross(c)		—			115			—		—		115			—			115
Tax expense		—			(26	)		—		—		(26	)		—			(26	)
Net current-period other comprehensive (loss) income		41			(16	)		—		—		25			(6	)		19
Ending balance, December 31, 2020	$	(333	)	$	(1,028	)	$	8	$	—	$	(1,353	)	$	20		$	(1,333	)

(a)	Amounts are net of tax of $43 million and $55 million as of December 31, 2020 and January 1, 2020, respectively.

(b)	Amounts are net of tax of $178 million and $174 million as of December 31, 2020 and January 1, 2020, 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):	*2021*			*2020*			*2019*				*is presented*
Amortization of pension and other postretirement benefits:
Prior service credit	$	(12	)	$	(12	)	$	(11	)	(b)(d)	Other income, net
Settlement loss		3			43			1		(b)(c)	Other income, net
Curtailment gain		—			(2	)		—		(c)	Other income, net
Actuarial loss		95			86			75		(b)(d)	Other income, net
		86			115			65			Total before tax
		(17	)		(26	)		(12	)		Income tax expense
Total reclassifications for the period	$	69		$	89		$	53			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 18. Employee Benefit Plans.”

(c)	In connection with the sale of our Chemical Intermediates Businesses, we recognized $41 million of pension and other postemployment benefit settlement losses during the year ended December 31, 2020.
(d)	Amounts contain approximately $6 million, $5 million and $7 million of prior service credit and actuarial loss related to discontinued operations for the years ended December 31, 2021, 2020 and 2019, 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.