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, 2015

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, 2015 and 2014 (dollars in millions):

	Defined Benefit Plans												Other Postretirement Benefit Plans
	2015						2014						2015						2014
	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	$	1,001		$	3,317		$	877		$	2,859		$	137		$	6		$	105		$	5
Service cost		32			40			27			32			4			—			3			—
Interest cost		43			79			45			102			5			—			5			—
Participant contributions		—			6			—			7			3			—			3			—
Plan amendments		—			(31	)		—			(6	)		(40	)		—			—			—
Acquisitions/divestitures		—			—			9			333			—			—			3			—
Foreign currency exchange rate changes		—			(210	)		—			(294	)		—			(1	)		—			—
Curtailments		—			(4	)		—			(1	)		—			—			—			—
Special termination benefits		—			3			—			3			—			—			—			—
Actuarial (gain) loss		(65	)		(65	)		129			458			(9	)		—			30			1
Benefits paid		(50	)		(125	)		(86	)		(176	)		(12	)		—			(12	)		—

Benefit obligation at end of year	$	961		$	3,010		$	1,001		$	3,317		$	88		$	5		$	137		$	6


Change in plan assets
Fair value of plan assets at beginning of year	$	761		$	2,587		$	755		$	2,443		$	—		$	—		$	—		$	—
Actual return on plan assets		(10	)		40			41			337			—			—			—			—
Foreign currency exchange rate changes		—			(153	)		—			(235	)		—			—			—			—
Participant contributions		—			6			—			7			3			—			3			—
Acquisitions/divestitures		—			—			6			106			—			—			—			—
Company contributions		21			76			45			105			9			—			9			—
Benefits paid		(50	)		(125	)		(86	)		(176	)		(12	)		—			(12	)		—

Fair value of plan assets at end of year	$	722		$	2,431		$	761		$	2,587		$	—		$	—		$	—		$	—


Funded status
Fair value of plan assets	$	722		$	2,431		$	761		$	2,587		$	—		$	—		$	—		$	—
Benefit obligation		961			3,010			1,001			3,317			88			5			137			6

Accrued benefit cost	$	(239	)	$	(579	)	$	(240	)	$	(730	)	$	(88	)	$	(5	)	$	(137	)	$	(6	)


Amounts recognized in balance sheet:
Noncurrent asset	$	—		$	35		$	—		$	8		$	—		$	—		$	—		$	—
Current liability		(6	)		(5	)		(6	)		(7	)		(9	)		—			(9	)		—
Noncurrent liability		(233	)		(609	)		(234	)		(731	)		(79	)		(5	)		(128	)		(6	)

	$	(239	)	$	(579	)	$	(240	)	$	(730	)	$	(88	)	$	(5	)	$	(137	)	$	(6	)

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

	Defined Benefit Plans												Other Postretirement Benefit Plans
	2015						2014						2015					2014
	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	$	359		$	906		$	390		$	916		$	38		$	1	$	50		$	1
Prior service cost		(22	)		(34	)		(29	)		(2	)		(58	)		—		(23	)		—

	$	337		$	872		$	361		$	914		$	(20	)	$	1	$	27		$	1

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	$	24		$	43		$	2		$	—
Prior service cost		(5	)		(4	)		(7	)		—

Total	$	19		$	39		$	(5	)	$	—

Components of the net periodic benefit costs

Components of net periodic benefit costs for the years ended December 31, 2015, 2014 and 2013 were as follows (dollars in millions):

	Defined Benefit Plans
	U.S. plans									Non-U.S. plans
	2015			2014			2013			2015			2014			2013
Service cost	$	32		$	27		$	31		$	40		$	32		$	38
Interest cost		43			45			40			79			102			90
Expected return on plan assets		(57	)		(56	)		(50	)		(143	)		(138	)		(124	)
Amortization of prior service cost		(6	)		(6	)		(7	)		—			—			1
Amortization of actuarial loss		32			19			35			43			34			43
Settlement loss		—			—			—			—			13			12
Special termination benefits		—			—			—			3			3			9

Net periodic benefit cost	$	44		$	29		$	49		$	22		$	46		$	69

	Other Postretirement Benefit Plans
	U.S. plans									Non-U.S. plans
	2015			2014			2013			2015		2014		2013
Service cost	$	4		$	3		$	4		$	—	$	—	$	—
Interest cost		5			5			5			—		—		—
Amortization of prior service cost		(5	)		(4	)		(2	)		—		—		—
Amortization of actuarial loss		3			1			2			—		—		—

Net periodic benefit cost	$	7		$	5		$	9		$	—	$	—	$	—

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, 2015, 2014 and 2013 were as follows (dollars in millions):

	Defined Benefit Plans
	U.S. plans									Non-U.S. plans
	2015			2014			2013			2015			2014			2013
Current year actuarial loss (gain)	$	2		$	144		$	(149	)	$	33		$	257		$	(40	)
Amortization of actuarial loss		(32	)		(19	)		(35	)		(43	)		(34	)		(43	)
Current year prior service (credits) cost		—			—			—			(32	)		(6	)		1
Amortization of prior service cost (credits)		6			6			7			—			—			(1	)
Settlements		—			—			—			—			(13	)		(12	)

Total recognized in other comprehensive loss (income)		(24	)		131			(177	)		(42	)		204			(95	)
Net periodic benefit cost		44			29			49			22			46			69

Total recognized in net periodic benefit cost and other comprehensive (loss) income	$	20		$	160		$	(128	)	$	(20	)	$	250		$	(26	)

	Other Postretirement Benefit Plans
	U.S. plans									Non-U.S. plans
	2015			2014			2013			2015		2014		2013
Current year actuarial loss (gain)	$	(9	)	$	30		$	(8	)	$	—	$	1	$	(1	)
Amortization of actuarial loss		(3	)		(1	)		(2	)		—		—		—
Current year prior service credit		(40	)		—			(22	)		—		—		—
Amortization of prior service cost		5			4			2			—		—		—

Total recognized in other comprehensive loss (income)		(47	)		33			(30	)		—		1		(1	)
Net periodic benefit cost		7			5			9			—		—		—

Total recognized in net periodic benefit cost and other comprehensive (loss) income	$	(40	)	$	38		$	(21	)	$	—	$	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
	2015		2014		2013		2015		2014		2013
Projected benefit obligation
Discount rate		4.90%		4.25%		5.13%		2.53%		2.48%		3.62%
Rate of compensation increase		4.17%		4.16%		4.17%		3.23%		3.23%		3.37%
Net periodic pension cost
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%
Expected return on plan assets		7.74%		7.75%		7.75%		5.79%		5.82%		5.75%

	Other Postretirement Benefit Plans
	U.S. plans						Non-U.S. plans
	2015		2014		2013		2015		2014		2013
Projected benefit obligation
Discount rate		4.68%		4.17%		4.79%		7.25%		6.44%		6.49%
Net periodic pension cost
Discount rate		4.20%		4.79%		3.89%		6.44%		6.49%		5.79%

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	$	—	$	—
Effect on postretirement benefit obligation		2		(2)

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, 2015 and 2014 were as follows (dollars in millions):

	U.S. plans				Non-U.S. plans
	2015		2014		2015		2014
Projected benefit obligation in excess of plan assets
Projected benefit obligation	$	961	$	1,002	$	2,129	$	2,945
Fair value of plan assets		722		761		1,514		2,206

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, 2015 and 2014 were as follows (dollars in millions):

	U.S. plans				Non-U.S. plans
	2015		2014		2015		2014
Accumulated benefit obligation in excess of plan assets
Projected benefit obligation	$	961	$	1,002	$	1,403	$	2,253
Accumulated benefit obligation		941		980		1,312		2,108
Fair value of plan assets		722		761		823		1,554

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
2016 expected employer contributions
To plan trusts	$	6	$	9	$	60	$	—
Expected benefit payments
2016		67		9		111		—
2017		71		7		112		—
2018		62		7		116		—
2019		65		7		118		—
2020		65		7		121		—
2021 - 2025		354		37		650		2

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

The fair value of plan assets for the pension plans was $3.2 billion and $3.3 billion at December 31, 2015 and 2014, 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, 2015		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	$	387	$	279	$	108	$	—
Fixed income		277		211		66		—
Real estate/other		58		—		—		58
Cash		—		—		—		—

Total U.S. pension plan assets	$	722	$	490	$	174	$	58


Non-U.S. pension plans:
Equities	$	830	$	446	$	384	$	—
Fixed income		1,113		514		599		—
Real estate/other		477		84		339		54
Cash		11		10		1		—

Total Non-U.S. pension plan assets	$	2,431	$	1,054	$	1,323	$	54

			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

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, 2015		Year ended December 31, 2014
Balance at beginning of period	$	96	$	76
Return on pension plan assets		4		5
Purchases, sales and settlements		12		6
Transfers (out of) into Level 3		—		—
Acquisition date fair value of pension plan assets acquired		—		9

Balance at end of period	$	112	$	96

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

Asset category	Target Allocation 2016		Allocation at December 31, 2015		Allocation at December 31, 2014
U.S. pension plans:
Equities		53%		54%		60%
Fixed income		40%		38%		28%
Real estate/other		7%		8%		11%
Cash		—		—		1%

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


Non-U.S. pension plans:
Equities		36%		34%		36%
Fixed income		44%		46%		47%
Real estate/other		11%		20%		15%
Cash		9%		—		2%

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

Huntsman International

EMPLOYEE BENEFIT PLANS