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

Annual report pursuant to Section 13 and 15(d)

ASSET RETIREMENT OBLIGATIONS

ASSET RETIREMENT OBLIGATIONS

12 Months Ended

Dec. 31, 2016

13. 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,
	2016			2015
Asset retirement obligations at beginning of year	$	52		$	26
Accretion expense		2			3
Liabilities assumed in connection with the Rockwood Acquisition		—			30
Liabilities settled		(4	)		(1	)
Foreign currency effect on reserve balance		(2	)		(6	)

Asset retirement obligations at end of year	$	48		$	52