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

Annual report pursuant to Section 13 and 15(d)

Note 24 - Accumulated Other Comprehensive Loss

Note 24 - Accumulated Other Comprehensive Loss

12 Months Ended

Dec. 31, 2023

Comprehensive Income (Loss) Note [Text Block]

24. ACCUMULATED OTHER COMPREHENSIVE LOSS

The components of other comprehensive income (loss) 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⁽¹⁾			adjustments⁽²⁾			*affiliates*			*Other, net*			*Total*			*interests*		*Corporation*
Beginning balance, January 1, 2023	$	(648	)	$	(652	)	$	2		$	5		$	(1,293	)	$	25	$	(1,268	)
Other comprehensive income (loss) before reclassifications, gross		7			(136	)		(7	)		(3	)		(139	)		3		(136	)
Tax impact		—			13			—			—			13			—		13
Amounts reclassified from accumulated other comprehensive loss, gross⁽³⁾		28			96			—			—			124			—		124
Tax impact		(1	)		23			—			—			22			—		22
Net current-period other comprehensive income (loss)		34			(4	)		(7	)		(3	)		20			3		23
Ending balance, December 31, 2023	$	(614	)	$	(656	)	$	(5	)	$	2		$	(1,273	)	$	28	$	(1,245	)

(1)	Amounts are net of tax of $56 million and $55 million as of December 31, 2023 and January 1, 2023, respectively.

(2)	Amounts are net of tax of $67 million and $31 million as of December 31, 2023 and January 1, 2023, respectively.

(3)	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⁽¹⁾			adjustments⁽²⁾			*affiliates*			*Other, net*			*Total*			*interests*		*Corporation*
Beginning balance, January 1, 2022	$	(420	)	$	(810	)	$	8		$	6		$	(1,216	)	$	13	$	(1,203	)
Other comprehensive (loss) income before reclassifications, gross		(229	)		157			—			(1	)		(73	)		12		(61	)
Tax impact		1			(38	)		—			—			(37	)		—		(37	)
Amounts reclassified from accumulated other comprehensive loss, gross⁽³⁾		—			51			(6	)		—			45			—		45
Tax impact		—			(12	)		—			—			(12	)		—		(12	)
Net current-period other comprehensive (loss) income		(228	)		158			(6	)		(1	)		(77	)		12		(65	)
Ending balance, December 31, 2022	$	(648	)	$	(652	)	$	2		$	5		$	(1,293	)	$	25	$	(1,268	)

(1)	Amounts are net of tax of $55 million and $56 million as of December 31, 2022 and January 1, 2022, respectively.

(2)	Amounts are net of tax of $31 million and $81 million as of December 31, 2022 and January 1, 2022, respectively.

(3)	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⁽¹⁾:	*2023*			*2022*			*2021*				*is presented*
Amortization of pension and other postretirement benefits:
Actuarial loss	$	34		$	57		$	92		⁽²⁾⁽³⁾	Other income, net
Prior service credit		(10	)		(11	)		(12	)	⁽²⁾⁽³⁾	Other income, net
Settlement loss		73			5			3		⁽²⁾⁽⁴⁾	Other income, net
Curtailment gain		(1	)		—			—		⁽²⁾⁽⁴⁾	Other income, net
		96			51			83			Total before tax
		23			(12	)		(18	)		Income tax expense
Total reclassifications for the period	$	119		$	39		$	65			Net of tax

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

(2)	These accumulated other comprehensive loss components are included in the computation of net periodic pension costs. See “Note 18. Employee Benefit Plans.”

(3)	Amounts contain approximately $1 million, $11 million and $16 million of prior service credit and actuarial loss related to discontinued operations for the years ended December 31, 2023, 2022 and 2021, respectively.
(4)	In connection with the sale of our Textile Effects Business, we recognized $67 million of pension settlement losses and $1 million of pension curtailment gains for the year ended December 31, 2023.

Huntsman International

				*Pension*			*Other*
	*Foreign*			*and other*			*comprehensive*									*Amounts*		*Amounts*
	*currency*			*postretirement*			*income of*									*attributable to*		*attributable to*
	*translation*			*benefits*			*unconsolidated*									*noncontrolling*		*Huntsman*
	adjustment⁽¹⁾			adjustments⁽²⁾			*affiliates*			*Other, net*			*Total*			*interests*		*International*
Beginning balance, January 1, 2023	$	(653	)	$	(628	)	$	2		$	1		$	(1,278	)	$	25	$	(1,253	)
Other comprehensive income (loss) before reclassifications, gross		7			(136	)		(7	)		(3	)		(139	)		3		(136	)
Tax impact		—			13			—			—			13			—		13
Amounts reclassified from accumulated other comprehensive loss, gross⁽³⁾		28			96			—			—			124			—		124
Tax impact		(1	)		23			—			—			22			—		22
Net current-period other comprehensive income (loss)		34			(4	)		(7	)		(3	)		20			3		23
Ending balance, December 31, 2023	$	(619	)	$	(632	)	$	(5	)	$	(2	)	$	(1,258	)	$	28	$	(1,230	)

(1)	Amounts are net of tax of $43 million and $42 million as of December 31, 2023 and January 1, 2023, respectively.

(2)	Amounts are net of tax of $91 million and $55 million as of December 31, 2023 and January 1, 2023, respectively.

(3)	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⁽¹⁾			adjustments⁽²⁾			*affiliates*			*Other, net*			*Total*			*interests*		*International*
Beginning balance, January 1, 2022	$	(424	)	$	(786	)	$	8		$	2		$	(1,200	)	$	13	$	(1,187	)
Other comprehensive (loss) income before reclassifications, gross		(230	)		157			—			(1	)		(74	)		12		(62	)
Tax impact		1			(38	)		—			—			(37	)		—		(37	)
Amounts reclassified from accumulated other comprehensive loss, gross⁽³⁾		—			51			(6	)		—			45			—		45
Tax impact		—			(12	)		—			—			(12	)		—		(12	)
Net current-period other comprehensive (loss) income		(229	)		158			(6	)		(1	)		(78	)		12		(66	)
Ending balance, December 31, 2022	$	(653	)	$	(628	)	$	2		$	1		$	(1,278	)	$	25	$	(1,253	)

(1)	Amounts are net of tax of $42 million and $43 million as of both December 31, 2022 and January 1, 2022, respectively.

(2)	Amounts are net of tax of $55 million and $105 million as of December 31, 2022 and January 1, 2022, respectively.

(3)	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(1):	*2023*			*2022*			*2021*				*is presented*
Amortization of pension and other postretirement benefits:
Actuarial loss	$	34		$	57		$	95		⁽²⁾⁽³⁾	Other income, net
Prior service credit		(10	)		(11	)		(12	)	⁽²⁾⁽³⁾	Other income, net
Settlement loss		73			5			3		⁽²⁾⁽⁴⁾	Other income, net
Curtailment gain		(1	)		—			—		⁽²⁾⁽⁴⁾	Other income, net
		96			51			86			Total before tax
		23			(12	)		(17	)		Income tax expense
Total reclassifications for the period	$	119		$	39		$	69			Net of tax

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

(2)	These accumulated other comprehensive loss components are included in the computation of net periodic pension costs. See “Note 18. Employee Benefit Plans.”

(3)	Amounts contain approximately $1 million, $11 million and $16 million of prior service credit and actuarial loss related to discontinued operations for the years ended December 31, 2023, 2022 and 2021, respectively.
(4)	In connection with the sale of our Textile Effects Business, we recognized $67 million of pension settlement losses and $1 million of pension curtailment gains for the year ended December 31, 2023.

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.