Quarterly report pursuant to Section 13 or 15(d)

EMPLOYEE BENEFIT PLANS

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EMPLOYEE BENEFIT PLANS
 6 Months Ended
Jun. 30, 2012
EMPLOYEE BENEFIT PLANS  
EMPLOYEE BENEFIT PLANS

10. EMPLOYEE BENEFIT PLANS

        Components of the net periodic benefit costs for the three and six months ended June 30, 2012 and 2011 were as follows (dollars in millions):

Huntsman Corporation

 
   Defined
Benefit Plans 		  Other
Postretirement
Benefit Plans 		 
 
   Three months
ended
June 30, 		  Three months
ended
June 30, 		 
 
   2012   2011   2012   2011  

Service cost

   $ 15   $ 17   $ 1   $ 1  

Interest cost

     36     39     1     2  

Expected return on assets

     (45 )   (48 )   —     —  

Amortization of prior service cost

     (2 )   (2 )   —     —  

Amortization of actuarial loss

     11     7     1     —  
                   

Net periodic benefit cost

   $ 15   $ 13   $ 3   $ 3  
                   

 

 
   Defined
Benefit Plans 		  Other
Postretirement
Benefit Plans 		 
 
   Six months
ended
June 30, 		  Six months
ended
June 30, 		 
 
   2012   2011   2012   2011  

Service cost

   $ 31   $ 33   $ 2   $ 2  

Interest cost

     73     77     3     4  

Expected return on assets

     (91 )   (94 )   —     —  

Amortization of prior service cost

     (4 )   (3 )   (1 )   (1 )

Amortization of actuarial loss

     22     14     1     —  
                   

Net periodic benefit cost

   $ 31   $ 27   $ 5   $ 5  
                   

Huntsman International

 
   Defined
Benefit Plans 		  Other
Postretirement
Benefit Plans 		 
 
   Three months
ended
June 30, 		  Three months
ended
June 30, 		 
 
   2012   2011   2012   2011  

Service cost

   $ 15   $ 17   $ 1   $ 1  

Interest cost

     36     39     1     2  

Expected return on assets

     (45 )   (48 )   —     —  

Amortization of prior service cost

     (2 )   (2 )   —     —  

Amortization of actuarial loss

     12     9     1     —  
                   

Net periodic benefit cost

   $ 16   $ 15   $ 3   $ 3  
                   

 

 
   Defined
Benefit Plans 		  Other
Postretirement
Benefit Plans 		 
 
   Six months
ended
June 30, 		  Six months
ended
June 30, 		 
 
   2012   2011   2012   2011  

Service cost

   $ 31   $ 33   $ 2   $ 2  

Interest cost

     73     77     3     4  

Expected return on assets

     (91 )   (94 )   —     —  

Amortization of prior service cost

     (4 )   (3 )   (1 )   (1 )

Amortization of actuarial loss

     24     17     1     —  
                   

Net periodic benefit cost

   $ 33   $ 30   $ 5   $ 5  
                   

        During the first quarter of 2012, certain U.K. pension plans were closed to new entrants. For existing participants, benefits will only grow as a result of increases in pay. Defined contribution plans were established to replace these pension plans for future benefit accruals. This change did not have a significant impact on our pension liability.

        During 2012, a certain U.S. pension plan formula was converted from an average pay design to a cash balance plan design. The existing defined contribution plan match was enhanced to offset this reduction in benefits. In connection with this plan change, we reduced our pension liability by approximately $23 million with a corresponding offset to other comprehensive (loss) income during the six months ended June 30, 2012.

        During the six months ended June 30, 2012 and 2011, we made contributions to our pension and other postretirement benefit plans of $84 million and $96 million, respectively. During the remainder of 2012, we expect to contribute an additional amount of $70 million to these plans.