Annual report pursuant to Section 13 and 15(d)

EMPLOYEE BENEFIT PLANS (Tables)

v3.19.3.a.u2
EMPLOYEE BENEFIT PLANS (Tables)
12 Months Ended
Dec. 31, 2019
EMPLOYEE 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, 2019 and 2018 (dollars in millions):

Defined Benefit Plans

Other Postretirement Benefit Plans

2019

2018

2019

2018

U.S.

Non-U.S.

U.S.

Non-U.S.

U.S.

Non-U.S.

U.S.

Non-U.S.

Plans

Plans

Plans

Plans

Plans

Plans

Plans

Plans

Change in benefit obligation

    

    

    

    

    

    

    

    

Benefit obligation at beginning of year

$

956

$

2,157

$

1,028

$

2,259

$

59

$

$

69

$

Service cost

 

20

 

30

 

23

 

32

 

1

 

 

2

 

Interest cost

 

41

 

37

 

39

 

37

 

3

 

 

2

 

Participant contributions

 

 

6

 

 

5

 

2

 

 

2

 

Plan amendments

 

 

(9)

 

 

4

 

 

 

 

Foreign currency exchange rate changes

 

 

7

 

 

(74)

 

 

 

 

Settlements/transfers/divestitures

 

20

 

(2)

 

(6)

 

(3)

 

1

 

 

 

Actuarial (gain) loss

 

65

 

224

 

(67)

 

(30)

 

 

 

(9)

 

Benefits paid

 

(78)

 

(73)

 

(61)

 

(73)

 

(6)

 

 

(7)

 

Benefit obligation at end of year

$

1,024

$

2,377

$

956

$

2,157

$

60

$

$

59

$

Change in plan assets

Fair value of plan assets at beginning of year

$

697

$

1,751

$

747

$

1,883

$

$

$

$

Actual return on plan assets

 

107

 

224

 

(27)

 

(38)

 

 

 

 

Foreign currency exchange rate changes

 

 

11

 

 

(62)

 

 

 

 

Participant contributions

 

 

6

 

 

5

 

2

 

 

2

 

Settlement/transfers/divestitures

19

(2)

(6)

(3)

Company contributions

 

45

 

43

 

44

 

39

 

4

 

 

5

 

Benefits paid

 

(78)

 

(73)

 

(61)

 

(73)

 

(6)

 

 

(7)

Fair value of plan assets at end of year

$

790

$

1,960

$

697

$

1,751

$

$

$

$

Funded status

Fair value of plan assets

$

790

$

1,960

$

697

$

1,751

$

$

$

$

Benefit obligation

 

1,024

 

2,377

 

956

 

2,157

 

60

 

 

59

 

Accrued benefit cost

$

(234)

$

(417)

$

(259)

$

(406)

$

(60)

$

$

(59)

$

Amounts recognized in balance sheet:

Noncurrent asset

$

$

10

$

$

10

$

$

$

$

Current liability

 

(5)

 

(6)

 

(5)

 

(6)

 

(5)

 

 

(5)

 

Noncurrent liability

 

(229)

 

(421)

 

(254)

 

(410)

 

(55)

 

 

(54)

 

Total

$

(234)

$

(417)

$

(259)

$

(406)

$

(60)

$

$

(59)

$

Schedule of amounts recognized in accumulated other comprehensive loss

Defined Benefit Plans

Other Postretirement Benefit Plans

2019

2018

2019

2018

U.S.

Non-U.S.

U.S.

Non-U.S.

U.S.

Non-U.S.

U.S.

Non-U.S.

Plans

Plans

Plans

Plans

Plans

Plans

Plans

Plans

Amounts recognized in accumulated other comprehensive loss:

    

    

    

    

    

    

    

    

Net actuarial loss

$

394

$

840

$

401

$

784

$

20

$

$

21

$

Prior service credit

 

(11)

 

(32)

 

(13)

 

(27)

 

(33)

 

 

(38)

 

Total

$

383

$

808

$

388

$

757

$

(13)

$

$

(17)

$

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 of continuing operations during the next fiscal year are as follows (dollars in millions):

Huntsman Corporation

Other Postretirement

Defined Benefit Plans

Benefit Plans

Non-U.S.

Non-U.S.

U.S. Plans

Plans

U.S. Plans

Plans

Actuarial loss

    

$

28

    

$

53

    

$

1

    

$

Prior service credit

 

(2)

 

(5)

 

(5)

 

Total

$

26

$

48

$

(4)

$

Components of the net periodic benefit costs

Components of net periodic benefit costs of continuing operations for the years ended December 31, 2019, 2018 and 2017 were as follows (dollars in millions):

Huntsman Corporation

Defined Benefit Plans

U.S. plans

Non-U.S. plans

2019

2018

2017

2019

2018

2017

Service cost

    

$

20

    

$

23

    

$

22

    

$

30

    

$

32

    

$

33

Interest cost

 

41

 

39

 

39

 

37

 

37

 

35

Expected return on plan assets

 

(53)

 

(54)

 

(48)

 

(102)

 

(109)

 

(100)

Amortization of prior service credit

 

(2)

 

(2)

 

(2)

 

(4)

 

(5)

 

(5)

Amortization of actuarial loss

 

23

 

31

 

27

 

45

 

38

 

45

Settlement loss

2

1

Special termination benefits

 

 

 

 

 

 

1

Net periodic benefit cost (credit)

$

29

$

39

$

38

$

7

$

(7)

$

9

Other Postretirement Benefit Plans

U.S. plans

Non-U.S. plans

2019

2018

2017

2019

2018

2017

Service cost

    

$

1

    

$

2

    

$

2

    

$

    

$

    

$

Interest cost

 

3

 

2

 

3

 

 

 

Amortization of prior service credit

 

(5)

 

(5)

 

(6)

 

 

 

Amortization of actuarial loss

 

1

 

2

 

3

 

 

 

Net periodic benefit cost

$

$

1

$

2

$

$

$

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, 2019, 2018 and 2017 were as follows (dollars in millions):

Huntsman Corporation

Defined Benefit Plans

U.S. plans

Non-U.S. plans

2019

2018

2017

2019

2018

2017

Current year actuarial loss (gain)

    

$

19

    

$

18

    

$

42

    

$

101

    

$

117

    

$

(42)

Amortization of actuarial loss

 

(26)

 

(34)

 

(30)

 

(45)

 

(38)

 

(61)

Current year prior service (credits) cost

 

 

 

 

(10)

 

4

 

(2)

Amortization of prior service credit

 

2

 

2

 

2

 

4

 

5

 

4

Settlements

(2)

1

Curtailment (gain)/loss

3

Total recognized in other comprehensive income (loss)

 

(5)

 

(16)

 

14

 

51

 

88

 

(98)

Amounts related to discontinued operations

9

(4)

37

Total recognized in other comprehensive income (loss) in continuing operations

4

(20)

14

51

88

(61)

Net periodic benefit cost

 

29

 

39

 

38

 

7

 

(7)

 

9

Total recognized in net periodic benefit cost and other comprehensive income (loss)

$

33

$

19

$

52

$

58

$

81

$

(52)

Other Postretirement Benefit Plans

U.S. plans

Non-U.S. plans

2019

2018

2017

2019

2018

2017

Current year actuarial loss (gain)

    

$

    

$

(10)

    

$

(12)

    

$

    

$

    

$

Amortization of actuarial loss

 

(1)

 

(2)

 

(3)

 

 

 

(1)

Current year prior service credit

 

 

 

 

 

 

Amortization of prior service credit

 

5

 

6

 

6

 

 

 

2

Total recognized in other comprehensive income (loss)

 

4

 

(6)

 

(9)

 

 

 

1

Amounts related to discontinued operations

(6)

(1)

Total recognized in other comprehensive income (loss) in continuing operations

(2)

(6)

(9)

Net periodic benefit cost

 

 

1

 

2

 

 

 

Total recognized in net periodic benefit cost and other comprehensive income (loss)

$

(2)

$

(5)

$

(7)

$

$

$

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

 

2019

2018

2017

2019

2018

2017

 

Projected benefit obligation

    

    

    

    

    

    

Discount rate

 

3.59

%  

4.39

%  

3.74

%  

1.07

%  

1.75

%  

1.65

%  

Rate of compensation increase

 

4.09

%  

4.10

%  

4.10

%  

2.65

%  

2.95

%  

3.38

%  

Net periodic pension cost

Discount rate

 

4.39

%  

3.74

%  

4.24

%  

1.75

%  

1.65

%  

1.82

%  

Rate of compensation increase

 

4.07

%  

4.10

%  

4.14

%  

2.64

%  

3.38

%  

3.51

%  

Expected return on plan assets

 

7.52

%  

7.52

%  

7.53

%  

5.89

%  

5.88

%  

5.68

%  

Other Postretirement Benefit Plans

 

U.S. plans

Non-U.S. plans

 

2019

2018

2017

2019

2018

2017

 

Projected benefit obligation

    

    

    

    

    

    

Discount rate

 

3.46

%  

4.26

%  

3.58

%  

2.90

%  

3.50

%  

3.30

%

Net periodic pension cost

Discount rate

 

4.26

%  

3.58

%  

4.04

%  

3.50

%  

3.30

%  

3.50

%

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

    

Increase

    

Decrease

Asset category

Effect on total of service and interest cost

$

$

Effect on postretirement benefit obligation

 

2

 

(1)

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, 2019 and 2018 were as follows (dollars in millions):

U.S. plans

Non-U.S. plans

2019

2018

2019

2018

Projected benefit obligation in excess of plan assets

    

    

    

    

Projected benefit obligation

$

1,024

$

956

$

2,203

$

1,790

Fair value of plan assets

 

790

 

697

 

1,777

 

1,375

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, 2019 and 2018 were as follows (dollars in millions):

U.S. plans

Non-U.S. plans

2019

2018

2019

2018

Accumulated benefit obligation in excess of plan assets

    

    

    

    

Projected benefit obligation

$

1,024

$

956

$

1,066

$

986

Accumulated benefit obligation

 

1,019

 

935

 

991

 

919

Fair value of plan assets

 

790

 

697

 

664

 

608

Schedule of expected future contributions and benefit payments

Expected future contributions and benefit payments related to continuing operations are as follows (dollars in millions):

U.S. Plans

Non-U.S. Plans

Other

Other

Defined

Postretirement

Defined

Postretirement

Benefit

Benefit

Benefit

Benefit

    

Plans

    

Plans

    

Plans

    

Plans

2020 expected employer contributions

To plan trusts

$

45

$

5

$

38

$

Expected benefit payments

2020

 

59

 

5

 

78

 

2021

 

62

 

5

 

77

 

2022

 

65

 

5

 

81

 

2023

 

69

 

5

 

85

 

2024

 

98

 

5

 

84

 

2025 - 2029

 

325

 

24

 

447

 

Schedule of plan assets measured at fair value on a recurring basis The following plan assets are measured at fair value on a recurring basis (dollars in millions):

Fair Value Amounts Using

Quoted prices in active

Significant other

Significant

December 31, 

markets for identical

observable inputs

unobservable inputs

Asset category

2019

assets (Level 1)

(Level 2)

(Level 3)

U.S. pension plans:

    

    

    

    

Equities

$

422

$

283

$

139

$

Fixed income

 

301

 

220

 

81

 

Real estate/other

 

67

 

 

 

67

Cash

 

 

 

 

Total U.S. pension plan assets

$

790

$

503

$

220

$

67

Non-U.S. pension plans:

Equities

$

535

$

228

$

307

$

Fixed income

 

847

 

560

 

287

 

Real estate/other

 

505

 

99

 

349

 

57

Cash

 

73

 

72

 

1

 

Total Non-U.S. pension plan assets

$

1,960

$

959

$

944

$

57

Fair Value Amounts Using

Quoted prices in active

Significant other

Significant

December 31, 

Markets for identical

Observable inputs

Unobservable inputs

Asset category

2018

assets (Level 1)

(Level 2)

(Level 3)

U.S. pension plans:

    

    

    

    

Equities

$

349

$

242

$

107

$

Fixed income

 

283

 

212

 

71

 

Real estate/other

 

65

 

 

 

65

Cash

 

 

 

 

Total U.S. pension plan assets

$

697

$

454

$

178

$

65

Non-U.S. pension plans:

Equities

$

471

$

161

$

310

$

Fixed income

 

747

 

496

 

251

 

Real estate/other

 

497

 

93

 

348

 

56

Cash

 

36

 

36

 

 

Total Non-U.S. pension plan assets

$

1,751

$

786

$

909

$

56

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

    

Target

    

 

Allocation

Allocation at December 31, 

 

Asset category

2020

2019

2018

 

U.S. pension plans:

Equities

 

53

%  

54

%  

50

%  

Fixed income

 

39

%  

38

%  

41

%  

Real estate/other

 

5

%  

8

%  

9

%  

Cash

3

%  

%  

 

Total U.S. pension plans

 

100

%  

100

%  

100

%  

Non-U.S. pension plans:

Equities

 

31

%  

27

%  

27

%  

Fixed income

 

44

%  

43

%  

43

%  

Real estate/other

 

15

%  

26

%  

28

%  

Cash

 

10

%  

4

%  

2

%  

Total non-U.S. pension plans

 

100

%  

100

%  

100

%  

Real Estate/Other  
EMPLOYEE BENEFIT PLANS  
Schedule of 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

Year ended December 31, 

2019

2018

Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3)

    

    

Balance at beginning of period

$

121

$

117

Return on pension plan assets

 

4

 

4

Purchases, sales and settlements

 

(1)

 

Transfers into (out of) Level 3

 

 

Balance at end of period

$

124

$

121

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES  
EMPLOYEE BENEFIT PLANS  
Schedule of amounts recognized in accumulated other comprehensive loss

Defined Benefit Plans

Other Postretirement Benefit Plans

2019

2018

2019

2018

U.S.

Non-U.S.

U.S.

Non-U.S.

U.S.

Non-U.S.

U.S.

Non-U.S.

Plans

Plans

Plans

Plans

Plans

Plans

Plans

Plans

Amounts recognized in accumulated other comprehensive loss:

    

    

    

    

    

    

    

    

Net actuarial loss

$

395

$

846

$

402

$

793

$

20

$

$

21

$

Prior service credit

 

(11)

 

(31)

 

(13)

 

(27)

 

(33)

 

 

(38)

 

Total

$

384

$

815

$

389

$

766

$

(13)

$

$

(17)

$

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

Other Postretirement

Defined Benefit Plans

Benefit Plans

Non-U.S.

Non-U.S.

U.S. Plans

Plans

U.S. Plans

Plans

Actuarial loss

    

$

28

    

$

56

    

$

1

    

$

Prior service credit

 

(2)

 

(5)

 

(5)

 

Total

$

26

$

51

$

(4)

$

Components of the net periodic benefit costs

Defined Benefit Plans

U.S. plans

Non-U.S. plans

2019

2018

2017

2019

2018

2017

Service cost

    

$

20

    

$

23

    

$

22

    

$

30

    

$

32

    

$

33

Interest cost

 

41

 

39

 

39

 

37

 

37

 

35

Expected return on plan assets

 

(53)

 

(54)

 

(48)

 

(102)

 

(109)

 

(100)

Amortization of prior service credit

 

(2)

 

(2)

 

(2)

 

(4)

 

(5)

 

(5)

Amortization of actuarial loss

 

23

 

31

 

27

 

48

 

41

 

48

Settlement loss

2

1

Special termination benefits

 

 

 

 

 

 

1

Net periodic benefit cost (credit)

$

29

$

39

$

38

$

10

$

(4)

$

12

Other Postretirement Benefit Plans

U.S. plans

Non-U.S. plans

2019

2018

2017

2019

2018

2017

Service cost

    

$

1

    

$

2

    

$

2

    

$

    

$

    

$

Interest cost

 

3

 

2

 

3

 

 

 

Amortization of prior service credit

 

(5)

 

(5)

 

(6)

 

 

 

Amortization of actuarial loss

 

1

 

2

 

3

 

 

 

Net periodic benefit cost

$

$

1

$

2

$

$

$

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

Defined Benefit Plans

U.S. plans

Non-U.S. plans

2019

2018

2017

2019

2018

2017

Current year actuarial loss

    

$

19

    

$

18

    

$

42

    

$

101

    

$

117

    

$

(42)

Amortization of actuarial loss

 

(26)

 

(34)

 

(30)

 

(48)

 

(41)

 

(68)

Current year prior service credit

 

 

 

 

(10)

 

4

 

(2)

Amortization of prior service credit

 

2

 

2

 

2

 

4

 

5

 

4

Settlements

(2)

1

Curtailment (gain)/loss

3

Total recognized in other comprehensive income (loss)

 

(5)

 

(16)

 

14

 

48

 

85

 

(105)

Amounts related to discontinued operations

9

(4)

42

Total recognized in other comprehensive income (loss) in continuing operations

4

(20)

14

48

85

(63)

Net periodic benefit cost

 

29

 

39

 

38

 

10

 

(4)

 

12

Total recognized in net periodic benefit cost and other comprehensive income (loss)

$

33

$

19

$

52

$

58

$

81

$

(51)

Other Postretirement Benefit Plans

U.S. plans

Non-U.S. plans

2019

2018

2017

2019

2018

2017

Current year actuarial loss (gain)

    

$

    

$

(10)

    

$

(12)

    

$

    

$

    

$

Amortization of actuarial loss

 

(1)

 

(2)

 

(3)

 

 

 

(1)

Current year prior service credit

 

 

 

 

 

 

Amortization of prior service credit

 

5

 

6

 

6

 

 

 

2

Total recognized in other comprehensive income (loss)

 

4

 

(6)

 

(9)

 

 

 

1

Amounts related to discontinued operations

(6)

(1)

Total recognized in other comprehensive income (loss) in continuing operations

(2)

(6)

(9)

Net periodic benefit cost

 

 

1

 

2

 

 

 

Total recognized in net periodic benefit cost and other comprehensive income (loss)

$

(2)

$

(5)

$

(7)

$

$

$