Huntsman Corporation Quarterly report pursuant to Section 13 or 15(d)

OTHER COMPREHENSIVE INCOME

3 Months Ended

Mar. 31, 2020

13. OTHER COMPREHENSIVE INCOME

The components of other comprehensive income and changes in accumulated other comprehensive loss by component were as follows (dollars in millions):

Huntsman Corporation


			Pension and		Other
	Foreign		other		comprehensive						Amounts		Amounts
	currency		postretirement		income of						attributable to		attributable to
	translation		benefits		unconsolidated						noncontrolling		Huntsman
	adjustment(a)		adjustments(b)		affiliates		Other, net		Total		interests		Corporation
Beginning balance, January 1, 2020	$	(369)	$	(1,031)	$	8	$	4	$	(1,388)	$	26	$	(1,362)
Other comprehensive (loss) income before reclassifications, gross		(67)		8		—		—		(59)		—		(59)
Tax benefit		(6)		—		—		—		(6)		—		(6)
Amounts reclassified from accumulated other comprehensive loss, gross(c)		—		58		—		—		58		—		58
Tax expense		—		(14)		—		—		(14)		—		(14)
Net current-period other comprehensive (loss) income		(73)		52		—		—		(21)		—		(21)
Ending balance, March 31, 2020	$	(442)	$	(979)	$	8	$	4	$	(1,409)	$	26	$	(1,383)

(a)	Amounts are net of tax of $74 and $68 as of March 31, 2020 and January 1, 2020, respectively.

(b)	Amounts are net of tax of $134 and $148 as of March 31, 2020 and January 1, 2020, respectively.

(c)	See table below for details about these reclassifications.


			Pension and		Other
	Foreign		other		comprehensive						Amounts		Amounts
	currency		postretirement		income of						attributable to		attributable to
	translation		benefits		unconsolidated						noncontrolling		Huntsman
	adjustment(a)		adjustments(b)		affiliates		Other, net		Total		interests		Corporation
Beginning balance, January 1, 2019	$	(371)	$	(994)	$	8	$	5	$	(1,352)	$	36	$	(1,316)
Other comprehensive income before reclassifications, gross		40		—		—		—		40		(2)		38
Tax benefit		2		—		—		—		2		—		2
Amounts reclassified from accumulated other comprehensive loss, gross(c)		—		15		—		—		15		—		15
Tax expense		—		(3)		—		—		(3)		—		(3)
Net current-period other comprehensive income		42		12		—		—		54		(2)		52
Ending balance, March 31, 2019	$	(329)	$	(982)	$	8	$	5	$	(1,298)	$	34	$	(1,264)

(a)	Amounts are net of tax of $69 and $71 as of March 31, 2019 and January 1, 2019, respectively.

(b)	Amounts are net of tax of $132 and $135 as of March 31, 2019 and January 1, 2019, respectively.

(c)	See table below for details about these reclassifications.


	Three months ended March 31,
	2020		2019
	Amounts reclassified		Amounts reclassified		Affected line item in
	from accumulated		from accumulated		the statement
	other		other		where net income
Details about Accumulated Other	comprehensive loss		comprehensive loss		is presented
Comprehensive Loss Components(a):
Amortization of pension and other postretirement benefits:
Prior service credit	$	(3)	$	(3)	(b)
Settlement loss		41		—	(c)
Actuarial loss		20		18	(b)(d)
		58		15	Total before tax
		(14)		(3)	Income tax expense
Total reclassifications for the period	$	44	$	12	Net of tax

(a)	Pension and other postretirement benefits amounts in parentheses indicate credits on our condensed consolidated statements of operations.

(b)	These accumulated other comprehensive loss components are included in the computation of net periodic pension costs. See “Note 11. Employee Benefit Plans.”

(c)	In connection with the sale of our Chemical Intermediates Businesses, we recognized $41 million of pension and other post-employment benefit settlement losses during the three months ended March 31, 2020.

(d)	Amounts contain approximately $1 of actuarial losses related to discontinued operations for both the three months ended March 31, 2020 and 2019.

Huntsman International


	Foreign currency translation adjustment(a)		Pension and other postretirement benefits adjustments(b)		Other comprehensive income of unconsolidated affiliates		Other, net		Total		Amounts attributable to noncontrolling interests		Amounts attributable to Huntsman International
Beginning balance, January 1, 2020	$	(374)	$	(1,012)	$	8	$	—	$	(1,378)	$	26	$	(1,352)
Other comprehensive (loss) income before reclassifications, gross		(67)		8		—		—		(59)		—		(59)
Tax benefit		(6)		—		—		—		(6)		—		(6)
Amounts reclassified from accumulated other comprehensive loss, gross(c)		—		59		—		—		59		—		59
Tax expense		—		(14)		—		—		(14)		—		(14)
Net current-period other comprehensive (loss) income		(73)		53		—		—		(20)		—		(20)
Ending balance, March 31, 2020	$	(447)	$	(959)	$	8	$	—	$	(1,398)	$	26	$	(1,372)

(a)	Amounts are net of tax of $61 and $55 as of March 31, 2020 and January 1, 2020 respectively.

(b)	Amounts are net of tax of $160 and $174 as of March 31, 2020 and January 1, 2020, respectively.

(c)	See table below for details about these reclassifications.


			Pension and		Other
	Foreign		other		comprehensive						Amounts		Amounts
	currency		postretirement		income of						attributable to		attributable to
	translation		benefits		unconsolidated						noncontrolling		Huntsman
	adjustment(a)		adjustments(b)		affiliates		Other, net		Total		interests		Corporation
Beginning balance, January 1, 2019	$	(376)	$	(977)	$	8	$	1	$	(1,344)	$	36	$	(1,308)
Other comprehensive income before reclassifications, gross		40		—		—		—		40		(2)		38
Tax benefit		1		—		—		—		1		—		1
Amounts reclassified from accumulated other comprehensive loss, gross(c)		—		16		—		—		16		—		16
Tax expense		—		(3)		—		—		(3)		—		(3)
Net current-period other comprehensive income		41		13		—		—		54		(2)		52
Ending balance, March 31, 2019	$	(335)	$	(964)	$	8	$	1	$	(1,290)	$	34	$	(1,256)

(a)	Amounts are net of tax of $56 and $57 as of March 31, 2019 and January 1, 2019, respectively.

(b)	Amounts are net of tax of $158 and $161 as of March 31, 2019 and January 1, 2019, respectively.

(c)	See table below for details about these reclassifications.


	Three months ended March 31,
	2020		2019
	Amounts reclassified		Amounts reclassified		Affected line item in
	from accumulated		from accumulated		the statement
	other		other		where net income
Details about Accumulated Other	comprehensive loss		comprehensive loss		is presented
Comprehensive Loss Components(a):
Amortization of pension and other postretirement benefits:
Prior service credit	$	(3)	$	(3)	(b)
Settlement loss		41		—	(c)
Actuarial loss		21		19	(b)(d)
		59		16	Total before tax
		(14)		(3)	Income tax expense
Total reclassifications for the period	$	45	$	13	Net of tax

(a)	Pension and other postretirement benefits amounts in parentheses indicate credits on our condensed consolidated statements of operations.

(b)	These accumulated other comprehensive loss components are included in the computation of net periodic pension costs. See “Note 11. Employee Benefit Plans.”

(c)	In connection with the sale of our Chemical Intermediates Businesses, we recognized $41 million of pension and other post-employment benefit settlement losses during the three months ended March 31, 2020.

(d)	Amounts contain approximately $1 of actuarial losses related to discontinued operations for both the three months ended March 30, 2020 and 2019.