Huntsman Corporation Registration of securities issued in business combination transactions

Registration of securities issued in business combination transactions

ASSET RETIREMENT OBLIGATIONS

ASSET RETIREMENT OBLIGATIONS

12 Months Ended

Dec. 31, 2015

12. ASSET RETIREMENT OBLIGATIONS

Asset retirement obligations consist primarily of landfill capping, closure and post-closure costs, asbestos abatement costs, demolition and removal costs and leasehold remediation costs. We are legally required to perform capping and closure and post-closure care on the landfills and asbestos abatement on certain of our premises. For each asset retirement obligation we recognized the estimated fair value of a liability and capitalized the cost as part of the cost basis of the related asset.

The following table describes changes to our asset retirement obligation liabilities (dollars in millions):

	December 31,
	2015			2014
Asset retirement obligations at beginning of year	$	26		$	29
Accretion expense		3			2
Liabilities incurred		—			—
Liabilities assumed in connection with the Rockwood Acquisition		30			—
Liabilities settled		(1	)		(2	)
Foreign currency effect on reserve balance		(6	)		(3	)

Asset retirement obligations at end of year	$	52		$	26