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

Annual report pursuant to Section 13 and 15(d)

Note 25 - Other Comprehensive (Loss) Income

Note 25 - Other Comprehensive (Loss) Income

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Comprehensive Income (Loss) Note [Text Block]

25. OTHER COMPREHENSIVE (LOSS) INCOME

Other comprehensive loss consisted of the following (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 income (loss) before reclassifications, gross		29			(135	)		—		—		(106	)		(6	)		(112	)
Tax benefit		12			30			—		—		42			—			42
Amounts reclassified from accumulated other comprehensive loss, gross(c)		—			111			—		—		111			—			111
Tax expense		—			(25	)		—		—		(25	)		—			(25	)
Net current-period other comprehensive income (loss)		41			(19	)		—		—		22			(6	)		16
Ending balance, December 31, 2020	$	(328	)	$	(1,050	)	$	8	$	4	$	(1,366	)	$	20		$	(1,346	)

(a)	Amounts are net of tax of $56 and $68 as of December 31, 2020 and January 1, 2020, respectively.

(b)	Amounts are net of tax of $153 and $148 as of December 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 (loss) income before reclassifications, gross		—			(112	)		—		(1	)		(113	)		5			(108	)
Tax benefit		2			25			—		—			27			—			27
Amounts reclassified from accumulated other comprehensive loss, gross(c)		—			62			—		—			62			—			62
Tax expense		—			(12	)		—		—			(12	)		—			(12	)
Net current-period other comprehensive (loss) income		2			(37	)		—		(1	)		(36	)		5			(31	)
Acquisition of noncontrolling interest		—			—			—		—			—			(15	)		(15	)
Ending balance, December 31, 2019	$	(369	)	$	(1,031	)	$	8	$	4		$	(1,388	)	$	26		$	(1,362	)

(a)	Amounts are net of tax of $68 and $71 as of December 31, 2019 and January 1, 2019, respectively.

(b)	Amounts are net of tax of $148 and $135 as of December 31, 2019 and January 1, 2019, respectively.

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

	*Amounts reclassified*
	*from accumulated*
	*other*
	*comprehensive loss*									*Affected line item in*
Details about Accumulated Other	*Year ended December 31,*									*where net income*
Comprehensive Loss Components(a):	*2020*			*2019*			*2018*			*is presented*
Amortization of pension and other postretirement benefits:
Prior service credit	$	(12	)	$	(11	)	$	(12	)	(b)
Settlement loss		43			1			2
Curtailment gain		(2	)		—			—
Actuarial loss		82			72			87		(b)(c)
		111			62			77		Total before tax
		(25	)		(12	)		(13	)	Income tax expense
Total reclassifications for the period	$	86		$	50		$	64		Net of tax

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

(b)	These accumulated other comprehensive loss components are included in the computation of net periodic pension costs. See “Note 19. Employee Benefit Plans.”

(c)	Amounts contain approximately $5, $7 and $22 of prior service credit and actuarial loss related to discontinued operations for the years ended December 31, 2020, 2019 and 2018, respectively.

Huntsman International

				*Pension*			*Other*
	*Foreign*			*and 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*			*International*
Beginning balance, January 1, 2020	$	(374	)	$	(1,012	)	$	8	$	—	$	(1,378	)	$	26		$	(1,352	)
Other comprehensive income (loss) before reclassifications, gross		29			(135	)		—		—		(106	)		(6	)		(112	)
Tax benefit		12			30			—		—		42			—			42
Amounts reclassified from accumulated other comprehensive loss, gross(c)		—			115			—		—		115			—			115
Tax expense		—			(26	)		—		—		(26	)		—			(26	)
Net current-period other comprehensive (loss) income		41			(16	)		—		—		25			(6	)		19
Ending balance, December 31, 2020	$	(333	)	$	(1,028	)	$	8	$	—	$	(1,353	)	$	20		$	(1,333	)

(a)	Amounts are net of tax of $43 and $55 as of December 31, 2020 and January 1, 2020, respectively.

(b)	Amounts are net of tax of $178 and $174 as of December 31, 2020 and January 1, 2020, respectively.

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

				*Pension*			*Other*
	*Foreign*			*and 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*			*International*
Beginning balance, January 1, 2019	$	(376	)	$	(977	)	$	8	$	1		$	(1,344	)	$	36		$	(1,308	)
Other comprehensive (loss) income before reclassifications, gross		—			(113	)		—		(1	)		(114	)		5			(109	)
Tax benefit		2			25			—		—			27			—			27
Amounts reclassified from accumulated other comprehensive loss, gross(c)		—			65			—		—			65			—			65
Tax expense		—			(12	)		—		—			(12	)		—			(12	)
Net current-period other comprehensive (loss) income		2			(35	)		—		(1	)		(34	)		5			(29	)
Acquisition of noncontrolling interest		—			—			—		—			—			(15	)		(15	)
Ending balance, December 31, 2019	$	(374	)	$	(1,012	)	$	8	$	—		$	(1,378	)	$	26		$	(1,352	)

(a)	Amounts are net of tax of $55 and $57 as of December 31, 2019 and January 1, 2019, respectively.

(b)	Amounts are net of tax of $174 and $161 as of December 31, 2019 and January 1, 2019, respectively.

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

	*Amounts reclassified*
	*from accumulated*
	*other*
	*comprehensive loss*									*Affected line item in*
Details about Accumulated Other	*Year ended December 31,*									*where net income*
Comprehensive Loss Components(a):	*2020*			*2019*			*2018*			*is presented*
Amortization of pension and other postretirement benefits:
Prior service credit	$	(12	)	$	(11	)	$	(12	)	(b)
Settlement loss		43			1			2		(c)
Curtailment gain		(2	)		—			—		(c)
Actuarial loss		86			75			90		(b)(c)
		115			65			80		Total before tax
		(26	)		(12	)		(14	)	Income tax expense
Total reclassifications for the period	$	89		$	53		$	66		Net of tax

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

(b)	These accumulated other comprehensive loss components are included in the computation of net periodic pension costs. See “Note 19. Employee Benefit Plans.”

(c)	Amounts contain approximately $5, $7 and $22 of prior service credit and actuarial loss related to discontinued operations for the years ended December 31, 2020, 2019 and 2018, respectively.

Items of other comprehensive income (loss) of our Company and our consolidated affiliates have been recorded net of tax, with the exception of the foreign currency translation adjustments related to subsidiaries with earnings permanently reinvested. The tax effect is determined based upon the jurisdiction where the income or loss was recognized and is net of valuation allowances.