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

Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2011

Schedule of Income tax expense (benefit)

	Year ended December 31,

	2011			2010			2009
Income tax expense (benefit):
U.S.
Current	$	69		$	(35	)	$	188
Deferred		4			47			160
Non-U.S.
Current		63			41			18
Deferred		(27	)		(24	)		78

Total	$	109		$	29		$	444

Schedule of reconciliation of the differences between the U.S. federal income taxes at the U.S. statutory rate to total (provision) benefit for income taxes

	Year ended December 31,

	2011			2010			2009
Income from continuing operations before income taxes	$	360		$	20		$	569

Expected tax expense at U.S. statutory rate of 35%	$	126		$	7		$	199
Change resulting from:
State tax expense (benefit) net of federal benefit		7			(4	)		7
Non-U.S. tax rate differentials		6			(16	)		46
Effects of non-U.S. operations		7			28			(4	)
Portion of Convertible Note loss on early extinguishment of debt treated as equity for tax purposes		—			43			—
Tax authority dispute resolutions		(4	)		(21	)		(6	)
Tax benefit of losses with valuation allowances as a result of other comprehensive income		(1	)		(4	)		(38	)
Change in valuation allowance		(16	)		(19	)		223
Other, net		(16	)		15			17

Total income tax expense	$	109		$	29		$	444

Schedule of components of income (loss) from continuing operations before income taxes

	Year ended December 31,

	2011		2010			2009
U.S.	$	256	$	(126	)	$	901
Non-U.S.		104		146			(332	)

Total	$	360	$	20		$	569

Schedule of components of deferred income tax assets and liabilities

	December 31,

	2011			2010
Deferred income tax assets:
Net operating loss carryforwards	$	824		$	780
Pension and other employee compensation		256			218
Property, plant and equipment		77			97
Intangible assets		36			51
Foreign tax credits		46			58
Other, net		98			119

Total	$	1,337		$	1,323

Deferred income tax liabilities:
Property, plant and equipment	$	(549	)	$	(562	)
Pension and other employee compensation		(25	)		(19	)
Other, net		(108	)		(111	)

Total	$	(682	)	$	(692	)

Net deferred tax asset before valuation allowance	$	655		$	631
Valuation allowance		(756	)		(797	)

Net deferred tax liability	$	(101	)	$	(166	)

Current deferred tax asset	$	20		$	1
Current deferred tax liability		(7	)		(19	)
Non-current deferred tax asset		195			166
Non-current deferred tax liability		(309	)		(314	)

Net deferred tax liability	$	(101	)	$	(166	)

Schedule of changes in valuation allowance

	2011			2010			2009

Valuation allowance as of January 1	$	797		$	842		$	669
Valuation allowance as of December 31		756			797			842

Net decrease (increase)		41			45			(173	)
Foreign currency movements		(30	)		1			14
Increase (decrease) to deferred tax assets with an offsetting (decrease) increase to valuation allowances		5			(27	)		(64	)

Change in valuation allowance per rate reconciliation	$	16		$	19		$	(223	)

Components of change in valuation allowance affecting tax expense:
Pre-tax losses in jurisdictions with valuation allowances resulting in no tax expense or benefit	$	(6	)	$	(1	)	$	(78	)
Releases of valuation allowances in various jurisdictions		27			20			4
Establishments of valuation allowances in various jurisdictions		(5	)		—			(149	)

Change in valuation allowance per rate reconciliation	$	16		$	19		$	(223	)

Schedule of reconciliation of unrecognized tax benefits

	2011			2010

Unrecognized tax benefits as of January 1	$	43		$	74
Gross increases and decreases—tax positions taken during a prior period		(3	)		(27	)
Gross increases and decreases—tax positions taken during the current period		3			4
Reductions resulting from the lapse of statutes of limitation		(4	)		(10	)
Foreign currency movements		—			2

Unrecognized tax benefits as of December 31	$	39		$	43

Schedule of interest and penalties related to unrecognized tax benefits included in the financial statement

	Year ended December 31,

	2011		2010		2009
Interest expense included in tax expense	$	5	$	1	$	3
Penalties expense included in tax expense		—		—		1

	December 31,

	2011		2010
Accrued liability for interest	$	13	$	8
Accrued liability for penalties		2		2

Summary of the tax years that remain subject to examination by major tax jurisdictions

Tax Jurisdiction		Open Tax Years

China		2002 and later
Hong Kong		2000 and later
India		2004 and later
Italy		2007 and later
Malaysia		2003 and later
Switzerland		2006 and later
The Netherlands		2006 and later
United Kingdom		2008 and later
United States federal		2011 and later

Huntsman International LLC and Subsidiaries

Income Tax

Schedule of Income tax expense (benefit)

	Year ended December 31,

	2011			2010			2009
Income tax expense (benefit):
U.S.
Current	$	7		$	(23	)	$	67
Deferred		69			45			(13	)
Non-U.S.
Current		63			41			17
Deferred		(26	)		(23	)		88

Total	$	113		$	40		$	159

Schedule of reconciliation of the differences between the U.S. federal income taxes at the U.S. statutory rate to total (provision) benefit for income taxes

	Year ended December 31,

	2011			2010			2009
Income (loss) from continuing operations before income taxes	$	370		$	184		$	(240	)

Expected tax expense (benefit) at U.S. statutory rate of 35%	$	130		$	64		$	(84	)
Change resulting from:
State tax expense (benefit) net of federal benefit		7			(4	)		(1	)
Non-U.S. tax rate differentials		6			(16	)		46
Effects of non-U.S. operations		8			29			(4	)
Tax authority dispute resolutions		(4	)		(21	)		(6	)
Tax benefit of losses with valuation allowances as a result of other comprehensive income		(1	)		(4	)		(39	)
Change in valuation allowance		(19	)		(22	)		230
Other, net		(14	)		14			17

Total income tax expense	$	113		$	40		$	159

Schedule of components of income (loss) from continuing operations before income taxes

	Year ended December 31,

	2011		2010		2009
U.S.	$	255	$	38	$	92
Non-U.S.		115		146		(332	)

Total	$	370	$	184	$	(240	)

Schedule of components of deferred income tax assets and liabilities

	December 31,

	2011			2010
Deferred income tax assets:
Net operating loss and AMT credit carryforwards	$	895		$	970
Pension and other employee compensation		254			216
Property, plant and equipment		77			97
Intangible assets		35			50
Foreign tax credits		82			75
Other, net		140			116

Total	$	1,483		$	1,524

Deferred income tax liabilities:
Property, plant and equipment	$	(515	)	$	(520	)
Pension and other employee compensation		(25	)		(19	)
Other, net		(107	)		(110	)

Total	$	(647	)	$	(649	)

Net deferred tax asset before valuation allowance	$	836		$	875
Valuation allowance		(768	)		(813	)

Net deferred tax asset	$	68		$	62

Current deferred tax asset	$	40		$	40
Current deferred tax liability		(29	)		(63	)
Non-current deferred tax asset		163			179
Non-current deferred tax liability		(106	)		(94	)

Net deferred tax asset	$	68		$	62

Schedule of changes in valuation allowance

	2011			2010			2009

Valuation allowance as of January 1	$	813		$	861		$	681
Valuation allowance as of December 31		768			813			861

Net decrease (increase)		45			48			(180	)
Foreign currency movements		(30	)		1			14
Increase (decrease) to deferred tax assets with an offsetting (decrease) increase to valuation allowances		4			(27	)		(64	)

Change in valuation allowance per rate reconciliation	$	19		$	22		$	(230	)

Components of change in valuation allowance affecting tax expense:
Pre-tax (losses) income in jurisdictions with valuation allowances resulting in no tax expense or benefit	$	(3	)	$	2		$	(75	)
Releases of valuation allowances in various jurisdictions		27			20			4
Establishments of valuation allowances in various jurisdictions		(5	)		—			(159	)

Change in valuation allowance per rate reconciliation	$	19		$	22		$	(230	)

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

+ References + Details

- Definition

Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded.

+ References + Details

- Definition

Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance.

+ References + Details