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

Annual report pursuant to Section 13 and 15(d)

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2014

DEFINED BENEFIT AND OTHER POSTRETIREMENT BENEFIT PLANS

Schedule of funded status of the plans and the amounts recognized in the consolidated balance sheets

The following table sets forth the funded status of the plans for us and Huntsman International and the amounts recognized in our consolidated balance sheets at December 31, 2014 and 2013 (dollars in millions):

	Defined Benefit Plans												Other Postretirement Benefit Plans
	2014						2013						2014						2013
	U.S. Plans			Non-U.S. Plans			U.S. Plans			Non-U.S. Plans			U.S. Plans			Non-U.S. Plans			U.S. Plans			Non-U.S. Plans
Change in benefit obligation
Benefit obligation at beginning of year	$	877		$	2,859		$	958		$	2,755		$	105		$	5		$	136		$	7
Service cost		27			32			31			38			3			—			4			—
Interest cost		45			102			40			90			5			—			5			—
Participant contributions		—			7			—			9			3			—			5			—
Plan amendments		—			(6	)		—			1			—			—			(22	)		—
Acquisitions/divestitures		9			333			—			—			3			—			—			—
Foreign currency exchange rate changes		—			(294	)		—			92			—			—			—			(1	)
Curtailments		—			(1	)		—			(5	)		—			—			—			—
Special termination benefits		—			3			—			9			—			—			—			—
Actuarial loss (gain)		129			458			(100	)		39			30			1			(9	)		—
Benefits paid		(86	)		(176	)		(52	)		(169	)		(12	)		—			(14	)		(1	)

Benefit obligation at end of year	$	1,001		$	3,317		$	877		$	2,859		$	137		$	6		$	105		$	5


Change in plan assets
Fair value of plan assets at beginning of year	$	755		$	2,443		$	636		$	2,237		$	—		$	—		$	—		$	—
Actual return on plan assets		41			337			99			198			—			—			—			—
Foreign currency exchange rate changes		—			(235	)		—			79			—			—			—			—
Participant contributions		—			7			—			9			3			—			5			—
Acquisitions/divestitures		6			106			—			—			—			—			—			—
Company contributions		45			105			72			89			9			—			9			1
Benefits paid		(86	)		(176	)		(52	)		(169	)		(12	)		—			(14	)		(1	)

Fair value of plan assets at end of year	$	761		$	2,587		$	755		$	2,443		$	—		$	—		$	—		$	—


Funded status
Fair value of plan assets	$	761		$	2,587		$	755		$	2,443		$	—		$	—		$	—		$	—
Benefit obligation		1,001			3,317			877			2,859			137			6			105			5

Accrued benefit cost	$	(240	)	$	(730	)	$	(122	)	$	(416	)	$	(137	)	$	(6	)	$	(105	)	$	(5	)


Amounts recognized in balance sheet:
Noncurrent asset	$	—		$	8		$	—		$	20		$	—		$	—		$	—		$	—
Current liability		(6	)		(7	)		(6	)		(6	)		(9	)		—			(9	)		—
Noncurrent liability		(234	)		(731	)		(116	)		(430	)		(128	)		(6	)		(96	)		(5	)

	$	(240	)	$	(730	)	$	(122	)	$	(416	)	$	(137	)	$	(6	)	$	(105	)	$	(5	)

Schedule of amounts recognized in accumulated other comprehensive loss (income)

	Defined Benefit Plans											Other Postretirement Benefit Plans
	2014						2013					2014					2013
	U.S. Plans			Non-U.S. Plans			U.S. Plans			Non-U.S. Plans		U.S. Plans			Non-U.S. Plans		U.S. Plans			Non-U.S. Plans
Amounts recognized in accumulated other comprehensive loss:
Net actuarial loss	$	390		$	916		$	264		$	705	$	50		$	1	$	21		$	—
Prior service cost		(29	)		(2	)		(35	)		5		(23	)		—		(27	)		—

	$	361		$	914		$	229		$	710	$	27		$	1	$	(6	)	$	—

Schedule of amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during the next fiscal year

The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during the next fiscal year are as follows (dollars in millions):

	Defined Benefit Plans					Other Postretirement Benefit Plans
	U.S. Plans			Non-U.S. Plans		U.S. Plans			Non-U.S. Plans
Actuarial loss	$	31		$	45	$	3		$	—
Prior service cost		(6	)		—		(3	)		—

Total	$	25		$	45	$	—		$	—

Components of the net periodic benefit costs

Components of net periodic benefit costs for the years ended December 31, 2014, 2013 and 2012 were as follows (dollars in millions):

	Defined Benefit Plans
	U.S. plans									Non-U.S. plans
	2014			2013			2012			2014			2013			2012
Service cost	$	27		$	31		$	26		$	32		$	38		$	32
Interest cost		45			40			42			102			90			102
Expected return on plan assets		(56	)		(50	)		(48	)		(138	)		(124	)		(133	)
Amortization of prior service cost		(6	)		(7	)		(6	)		—			1			(1	)
Amortization of actuarial loss		19			35			21			34			43			23
Settlement loss		—			—			—			13			12			13
Special termination benefits		—			—			—			3			9			—

Net periodic benefit cost	$	29		$	49		$	35		$	46		$	69		$	36

	Other Postretirement Benefit Plans
	U.S. plans									Non-U.S. plans
	2014			2013			2012			2014		2013		2012
Service cost	$	3		$	4		$	4		$	—	$	—	$	—
Interest cost		5			5			7			—		—		1
Amortization of prior service cost		(4	)		(2	)		(3	)		—		—		—
Amortization of actuarial loss		1			2			2			—		—		—

Net periodic benefit cost	$	5		$	9		$	10		$	—	$	—	$	1

Schedule of amounts recognized in net periodic benefit cost and other comprehensive loss (income)

The amounts recognized in net periodic benefit cost and other comprehensive income (loss) as of December 31, 2014, 2013 and 2012 were as follows (dollars in millions):

	Defined Benefit Plans
	U.S. plans									Non-U.S. plans
	2014			2013			2012			2014			2013			2012
Current year actuarial loss (gain)	$	144		$	(149	)	$	103		$	257		$	(40	)	$	272
Amortization of actuarial loss		(19	)		(35	)		(21	)		(34	)		(43	)		(23	)
Current year prior service (credits) cost		—			—			(26	)		(6	)		1			—
Amortization of prior service cost (credits)		6			7			6			—			(1	)		1
Settlements		—			—			—			(13	)		(12	)		(13	)

Total recognized in other comprehensive loss (income)		131			(177	)		62			204			(95	)		237
Net periodic benefit cost		29			49			35			46			69			36

Total recognized in net periodic benefit cost and other comprehensive (loss) income	$	160		$	(128	)	$	97		$	250		$	(26	)	$	273

	Other Postretirement Benefit Plans
	U.S. plans									Non-U.S. plans
	2014			2013			2012			2014		2013			2012
Current year actuarial loss (gain)	$	30		$	(8	)	$	9		$	1	$	(1	)	$	—
Amortization of actuarial loss		(1	)		(2	)		(2	)		—		—			—
Current year prior service credit		—			(22	)		—			—		—			—
Amortization of prior service cost		4			2			3			—		—			—

Total recognized in other comprehensive loss (income)		33			(30	)		10			1		(1	)		—
Net periodic benefit cost		5			9			10			—		—			1

Total recognized in net periodic benefit cost and other comprehensive (loss) income	$	38		$	(21	)	$	20		$	1	$	(1	)	$	1

Schedule of weighted-average assumptions used to determine the projected benefit obligation and the net periodic pension cost

	Defined Benefit Plans
	U.S. plans									Non-U.S. plans
	2014			2013			2012			2014			2013			2012
Projected benefit obligation
Discount rate		4.25	%		5.13	%		4.18	%		2.48	%		3.62	%		3.38	%
Rate of compensation increase		4.16	%		4.17	%		4.19	%		3.23	%		3.37	%		3.34	%
Net periodic pension cost
Discount rate		5.13	%		4.18	%		5.30	%		3.62	%		3.38	%		4.39	%
Rate of compensation increase		4.17	%		4.19	%		3.88	%		3.37	%		3.34	%		3.44	%
Expected return on plan assets		7.75	%		7.75	%		8.00	%		5.82	%		5.75	%		6.52	%

	Other Postretirement Benefit Plans
	U.S. plans									Non-U.S. plans
	2014			2013			2012			2014			2013			2012
Projected benefit obligation
Discount rate		4.17	%		4.79	%		3.89	%		6.44	%		6.49	%		5.79	%
Net periodic pension cost
Discount rate		4.79	%		3.89	%		5.09	%		6.49	%		5.79	%		6.09	%

Schedule of effect on one-percent-point change in assumed health care cost trend rates

A one-percent point change in assumed health care cost trend rates would have the following effects (dollars in millions):

	Increase		Decrease
Asset category
Effect on total of service and interest cost	$	1	$	(1	)
Effect on postretirement benefit obligation		7		(5	)

Schedule of projected benefit obligation and fair value of plan assets for the defined benefit plans with projected benefit obligations in excess of fair value of plan assets

The projected benefit obligation and fair value of plan assets for the defined benefit plans with projected benefit obligations in excess of plan assets as of December 31, 2014 and 2013 were as follows (dollars in millions):

	U.S. plans				Non-U.S. plans
	2014		2013		2014		2013
Projected benefit obligation in excess of plan assets
Projected benefit obligation	$	1,002	$	871	$	2,945	$	2,234
Fair value of plan assets		761		749		2,206		1,797

Schedule of defined benefit plans with an accumulated benefit obligation in excess of fair value of plan assets

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the defined benefit plans with an accumulated benefit obligation in excess of plan assets as of December 31, 2014 and 2013 were as follows (dollars in millions):

	U.S. plans				Non-U.S. plans
	2014		2013		2014		2013
Accumulated benefit obligation in excess of plan assets
Projected benefit obligation	$	1,002	$	871	$	2,253	$	1,868
Accumulated benefit obligation		980		853		2,108		1,732
Fair value of plan assets		761		749		1,554		1,451

Schedule of expected future contributions and benefit payments

Expected future contributions and benefit payments are as follows (dollars in millions):

	U.S. Plans				Non-U.S. Plans
	Defined Benefit Plans		Other Postretirement Benefit Plans		Defined Benefit Plans		Other Postretirement Benefit Plans
2015 expected employer contributions
To plan trusts	$	17	$	9	$	75	$	—
Expected benefit payments
2015		63		10		140		—
2016		67		10		119		—
2017		60		10		121		—
2018		61		10		126		—
2019		64		10		130		—
2020 - 2024		342		45		698		2

Schedule of plan assets measured at fair value on a recurring basis

The fair value of plan assets for the pension plans was $3.3 billion and $3.2 billion at December 31, 2014 and 2013, respectively. The following plan assets are measured at fair value on a recurring basis (dollars in millions):

			Fair Value Amounts Using
Asset category	December 31, 2014		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
U.S. pension plans:
Equities	$	454	$	268	$	186	$	—
Fixed income		216		83		133		—
Real estate/other		85		34		—		51
Cash		6		6		—		—

Total U.S. pension plan assets	$	761	$	391	$	319	$	51


Non-U.S. pension plans:
Equities	$	933	$	487	$	446	$	—
Fixed income		1,207		821		386		—
Real estate/other		383		28		310		45
Cash		64		59		5		—

Total Non-U.S. pension plan assets	$	2,587	$	1,395	$	1,147	$	45

			Fair Value Amounts Using
Asset category	December 31, 2013		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
U.S. pension plans:
Equities	$	428	$	245	$	183	$	—
Fixed income		208		88		120		—
Real estate/other		92		45		—		47
Cash		27		27		—		—

Total U.S. pension plan assets	$	755	$	405	$	303	$	47


Non-U.S. pension plans:
Equities	$	1,053	$	580	$	473	$	—
Fixed income		908		668		240		—
Real estate/other		400		30		341		29
Cash		82		80		2		—

Total Non-U.S. pension plan assets	$	2,443	$	1,358	$	1,056	$	29

Reconciliation of the beginning and ending balances of plan assets measured at fair value using unobservable inputs (level 3)

The following table reconciles the beginning and ending balances of plan assets measured at fair value using unobservable inputs (Level 3) (dollars in millions):

	Real Estate/Other
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3)	Year ended December 31, 2014		Year ended December 31, 2013
Balance at beginning of period	$	76	$	68
Return on pension plan assets		5		6
Purchases, sales and settlements		6		2
Transfers (out of) into Level 3		—		—
Acquisition date fair value of pension plan assets acquired		9		—

Balance at end of period	$	96	$	76

Schedule of asset allocation for pension plans and the target allocation, by asset category

Asset category	Target Allocation 2015			Allocation at December 31, 2014			Allocation at December 31, 2013
U.S. pension plans:
Equities		54	%		60	%		57	%
Fixed income		33	%		28	%		27	%
Real estate/other		13	%		11	%		12	%
Cash		—			1	%		4	%

Total U.S. pension plans		100	%		100	%		100	%


Non-U.S. pension plans:
Equities		37	%		36	%		38	%
Fixed income		46	%		47	%		40	%
Real estate/other		11	%		15	%		11	%
Cash		6	%		2	%		11	%

Total non-U.S. pension plans		100	%		100	%		100	%

Huntsman International