Huntsman Corporation Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Note 20 - Income Taxes (Tables)

Note 20 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	*Year ended December 31,*
	*2025*			*2024*			*2023*
Current:
U.S. federal	$	—		$	1		$	7
U.S. state and local		1			—			1
Foreign		57			75			66
Deferred:
U.S. federal		(58	)		(32	)		(33	)
U.S. state and local		—			(6	)		(2	)
Foreign		26			23			25
Total	$	26		$	61		$	64

	*Year ended December 31,*
	*2025*			*2024*			*2023*
Current:
U.S. federal	$	—		$	3		$	8
U.S. state and local		1			—			1
Foreign		57			75			66
Deferred:
U.S. federal		(57	)		(33	)		(33	)
U.S. state and local		—			(6	)		(2	)
Foreign		26			23			25
Total	$	27		$	62		$	65

Schedule of Income Taxes Paid [Table Text Block]

	*Year ended December 31,*
	*2025*
Income taxes paid (net of refunds) by jurisdiction:
U.S. federal	$	13
U.S. state and local		—
Foreign:
China		39
Germany		19
Saudi Arabia		8
All other foreign jurisdictions		19
Total	$	98

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	*Year ended December 31, 2025*
	*Amount*			*Percent*
Loss from continuing operations before income taxes	$	(192	)

Expected income tax benefit at U.S. statutory rate of 21%	$	(40	)		21	%
Change resulting from:
State tax benefit, net of federal effect⁽¹⁾		—			—
Foreign tax effects:
China:
Statutory tax rate difference		6			(3	)%
Withholding tax on repatriated earnings, interest and royalties		5			(3	)%
Other		1			(1	)%
Germany:
Statutory tax rate difference		6			(3	)%
Deferred tax effect of non-U.S. tax rate changes		2			(1	)%
State trade tax benefit		(19	)		10	%
State trade tax changes in valuation allowances		17			(9	)%
Changes in valuation allowances		14			(7	)%
Luxembourg:
Nondeductible currency exchange losses		4			(2	)%
Changes in valuation allowances		(4	)		2	%
Other		2			(1	)%
Netherlands:
Statutory tax rate difference		(7	)		4	%
Nontaxable currency exchange gains		(5	)		3	%
Changes in valuation allowances		39			(20	)%
Other		4			(2	)%
Saudi Arabia:
Nontaxable minority partner share of income		(5	)		3	%
Other		(1	)		1	%
Switzerland:
Statutory tax rate difference		(8	)		4	%
Cantonal tax expense		4			(2	)%
Turkey:
Changes in valuation allowances		2			(1	)%
U.K.:
Changes in valuation allowances		2			(1	)%
Other		(1	)		1	%
Other foreign jurisdictions:
Other		2			(3	)%
Effect of changes in tax laws or rates enacted in the current period		—			—
Effect of cross-border tax laws		—			—
Tax credits—research and development credits		(3	)		2	%
Changes in valuation allowances		(2	)		1	%
Nontaxable or nondeductible items:
Other U.S. tax effects, including nondeductible expenses and other items		1			(1	)%
Stock-based compensation		5			(3	)%
Changes in unrecognized tax benefits		5			(3	)%
Income tax expense and effective income tax rate	$	26			(14	)%

	*Year ended December 31, 2025*
	*Amount*			*Percent*
Loss from continuing operations before income taxes	$	(189	)

Expected income tax benefit at U.S. statutory rate of 21%	$	(39	)		21	%
Change resulting from:
State tax benefit, net of federal effect⁽¹⁾		—			—
Foreign tax effects:
China:
Statutory tax rate difference		6			(3	)%
Withholding tax on repatriated earnings, interest and royalties		5			(3	)%
Other		1			(1	)%
Germany:
Statutory tax rate difference		6			(3	)%
Deferred tax effect of non-U.S. tax rate changes		2			(1	)%
State trade tax benefit		(19	)		10	%
State trade tax changes in valuation allowances		17			(9	)%
Changes in valuation allowances		14			(7	)%
Luxembourg:
Nondeductible currency exchange losses		4			(2	)%
Changes in valuation allowances		(4	)		2	%
Other		2			(1	)%
Netherlands:
Statutory tax rate difference		(7	)		4	%
Nontaxable currency exchange gains		(5	)		3	%
Changes in valuation allowances		39			(21	)%
Other		4			(2	)%
Saudi Arabia:
Nontaxable minority partner share of income		(5	)		3	%
Other		(1	)		1	%
Switzerland:
Statutory tax rate difference		(8	)		4	%
Cantonal tax expense		4			(2	)%
Turkey:
Changes in valuation allowances		2			(1	)%
U.K.:
Changes in valuation allowances		2			(1	)%
Other		(1	)		1	%
Other foreign jurisdictions:
Other		2			(2	)%
Effect of changes in tax laws or rates enacted in the current period		—			—
Effect of cross-border tax laws		—			—
Tax credits—research and development credits		(3	)		2	%
Changes in valuation allowances		(2	)		1	%
Nontaxable or nondeductible items:
Other U.S. tax effects, including nondeductible expenses and other items		1			(1	)%
Stock-based compensation		5			(3	)%
Changes in unrecognized tax benefits		5			(3	)%
Income tax expense and effective income tax rate	$	27			(14	)%

	Year ended December 31,
	2024			2023
(Loss) income from continuing operations before income taxes	$	(39	)	$	99

Expected tax (benefit) expense at U.S. statutory rate of 21%	$	(8	)	$	21
Change resulting from:
State tax expense, net of federal benefit		(7	)		(1	)
Non-U.S. tax rate differentials		(4	)		—
Income tax settlement related to 2017 U.S. Tax Reform Act		5			—
Loss from liquidation of subsidiaries		10			—
Gain on acquisition of assets, net		(13	)		—
Impact of equity method investments		(17	)		(28	)
Non-U.S. withholding tax on repatriated earnings, interest and royalties, net of U.S. foreign tax credits		14			12
Tax authority audits and dispute resolutions		4			5
Non-U.S. income subject to U.S. tax not offset by U.S. foreign tax credits		(6	)		3
Deferred tax effect of non-U.S. tax rate changes		(2	)		—
Stock-based compensation		3			—
Other non-U.S. tax effects, including nondeductible expenses and transfer pricing adjustments		8			5
Other U.S. tax effects, including nondeductible expenses and other credits		(1	)		2
Change in valuation allowance		75			45
Total income tax expense	$	61		$	64

	Year ended December 31,
	2024			2023
(Loss) income from continuing operations before income taxes	$	(36	)	$	102

Expected tax (benefit) expense at U.S. statutory rate of 21%	$	(7	)	$	22
Change resulting from:
State tax expense, net of federal benefit		(7	)		(1	)
Non-U.S. tax rate differentials		(4	)		—
Income tax settlement related to 2017 U.S. Tax Reform Act		5			—
Loss from liquidation of subsidiaries		10			—
Gain on acquisition of assets, net		(13	)		—
Impact of equity method investments		(17	)		(28	)
Non-U.S. withholding tax on repatriated earnings, interest and royalties, net of U.S. foreign tax credits		14			12
Tax authority audits and dispute resolutions		4			5
Non-U.S. income subject to U.S. tax not offset by U.S. foreign tax credits		(6	)		3
Deferred tax effect of non-U.S. tax rate changes		(2	)		—
Stock-based compensation		3			—
Other non-U.S. tax effects, including nondeductible expenses and transfer pricing adjustments		8			5
Other U.S. tax effects, including nondeductible expenses and other credits		(1	)		2
Change in valuation allowance		75			45
Total income tax expense	$	62		$	65

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

	*Year ended December 31,*
	*2025*			*2024*			*2023*
U.S.	$	(283	)	$	(176	)	$	(155	)
Non-U.S.		91			137			254
Total	$	(192	)	$	(39	)	$	99

	*Year ended December 31,*
	*2025*			*2024*			*2023*
U.S.	$	(280	)	$	(173	)	$	(152	)
Non-U.S.		91			137			254
Total	$	(189	)	$	(36	)	$	102

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	*December 31,*
	*2025*			*2024*
Deferred income tax assets:
Net operating loss carryforwards	$	435		$	289
Operating leases		93			95
Pension and other employee compensation		45			57
Deferred interest		133			104
Capitalized research and development costs		23			56
Property, plant and equipment		21			25
Intangible assets		2			9
Intercompany prepayments		—			4
Other, net		63			49
Total	$	815		$	688
Deferred income tax liabilities:
Property, plant and equipment	$	(292	)	$	(284	)
Operating leases		(89	)		(95	)
Intangible assets		(66	)		(74	)
Pension and other employee compensation		(75	)		(52	)
Outside basis difference in subsidiaries		(47	)		(42	)
Unrealized currency gains		(5	)		(16	)
Other, net		(8	)		(5	)
Total	$	(582	)	$	(568	)
Net deferred tax asset before valuation allowance	$	233		$	120
Valuation allowance—net operating losses, deferred interest and other		(340	)		(255	)
Net deferred tax liability	$	(107	)	$	(135	)
Non-current deferred tax asset	$	49		$	69
Non-current deferred tax liability		(156	)		(204	)
Net deferred tax liability	$	(107	)	$	(135	)

	*December 31,*
	*2025*			*2024*
Deferred income tax assets:
Net operating loss carryforwards	$	433		$	288
Operating leases		93			95
Pension and other employee compensation		44			56
Deferred interest		133			104
Capitalized research and development costs		22			55
Property, plant and equipment		21			25
Intangible assets		2			9
Intercompany prepayments		—			4
Other, net		63			49
Total	$	811		$	685
Deferred income tax liabilities:
Property, plant and equipment	$	(292	)	$	(284	)
Operating leases		(89	)		(95	)
Intangible assets		(66	)		(74	)
Pension and other employee compensation		(75	)		(52	)
Outside basis difference in subsidiaries		(47	)		(42	)
Unrealized currency gains		(5	)		(16	)
Other, net		(8	)		(5	)
Total	$	(582	)	$	(568	)
Net deferred tax asset before valuation allowance	$	229		$	117
Valuation allowance—net operating losses, deferred interest and other		(340	)		(255	)
Net deferred tax liability	$	(111	)	$	(138	)
Non-current deferred tax asset		49			69
Non-current deferred tax liability		(160	)		(207	)
Net deferred tax liability	$	(111	)	$	(138	)

Summary of Valuation Allowance [Table Text Block]

	*2025*			*2024*			*2023*
Valuation allowances as of January 1	$	255		$	221		$	169
Valuation allowances as of December 31		340			255			221
Net increase		(85	)		(34	)		(52	)
Foreign currency movements		26			(13	)		3
Decrease to deferred tax assets with no impact on operating tax expense, including an offsetting (decrease) increase to valuation allowances		(10	)		(28	)		4
Change in valuation allowances per rate reconciliation	$	(69	)	$	(75	)	$	(45	)
Components of change in valuation allowances affecting tax expense:
Pre-tax income and losses in jurisdictions with valuation allowances resulting in no tax expense or benefit	$	(64	)	$	(46	)	$	(30	)
Releases of valuation allowances in various jurisdictions		8			—			1
Establishments of valuation allowances in various jurisdictions		(13	)		(29	)		(16	)
Change in valuation allowances per rate reconciliation	$	(69	)	$	(75	)	$	(45	)

	*2025*			*2024*			*2023*
Valuation allowances as of January 1	$	255		$	221		$	169
Valuation allowances as of December 31		340			255			221
Net increase		(85	)		(34	)		(52	)
Foreign currency movements		26			(13	)		3
Decrease to deferred tax assets with no impact on operating tax expense, including an offsetting (decrease) increase to valuation allowances		(10	)		(28	)		4
Change in valuation allowances per rate reconciliation	$	(69	)	$	(75	)	$	(45	)
Components of change in valuation allowances affecting tax expense:
Pre-tax income and losses in jurisdictions with valuation allowances resulting in no tax expense or benefit	$	(64	)	$	(46	)	$	(30	)
Releases of valuation allowances in various jurisdictions		8			—			1
Establishments of valuation allowances in various jurisdictions		(13	)		(29	)		(16	)
Change in valuation allowances per rate reconciliation	$	(69	)	$	(75	)	$	(45	)

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

	*2025*		*2024*
Unrecognized tax benefits as of January 1	$	5	$	5
Gross increases and decreases—tax positions taken during a prior period		1		—
Gross increases and decreases—tax positions taken during the current period		2		1
Reductions resulting from the lapse of statues of limitations		—		(1	)
Foreign currency movements		1		—
Unrecognized tax benefits as of December 31	$	9	$	5

Schedule of Unrecognized Tax Benefits, Income Tax Penalties and Interest Recognized in Financial Statement [Table Text Block]

	*Year ended December 31,*
	*2025*		*2024*		*2023*
Interest included in tax expense	$	2	$	2	$	3

	*December 31,*
	*2025*		*2024*
Accrued liability for interest	$	10	$	8

Summary of Open Tax Years [Table Text Block]

Tax jurisdiction		*Open tax years*
Belgium		2024 and later
China		2015 and later
Germany		2018 and later
Hong Kong		2019 and later
India		2022 and later
Mexico		2022 and later
Switzerland		2017 and later
The Netherlands		2021 and later
United Kingdom		2023 and later
United States federal		2017 and later