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

Note 19 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

	*Year ended December 31,*
	*2024*			*2023*			*2022*
(Loss) income from continuing operations before income taxes	$	(39	)	$	99		$	697

Expected tax (benefit) expense at U.S. statutory rate of 21%	$	(8	)	$	21		$	146
Change resulting from:
State tax expense, net of federal benefit		(7	)		(1	)		3
Non-U.S. tax rate differentials		(4	)		—			8
Income tax settlement related to 2017 U.S. Tax Reform Act		5			—			—
Loss from liquidation of subsidiaries		10			—			—
Gain on acquisition of assets, net		(13	)		—			—
Impact of equity method investments		(17	)		(28	)		(21	)
Non-U.S. withholding tax on repatriated earnings, interest and royalties, net of U.S. foreign tax credits		14			12			18
Tax authority audits and dispute resolutions		4			5			6
Non-U.S. income subject to U.S. tax not offset by U.S. foreign tax credits		(6	)		3			3
Deferred tax effect of non-U.S. tax rate changes		(2	)		—			(2	)
Stock-based compensation		3			—			(5	)
Other non-U.S. tax effects, including nondeductible expenses and transfer pricing adjustments		8			5			(11	)
Other U.S. tax effects, including nondeductible expenses and other credits		(1	)		2			3
Change in valuation allowance		75			45			38
Total income tax expense	$	61		$	64		$	186

	*Year ended December 31,*
	*2024*			*2023*			*2022*
(Loss) income from continuing operations before income taxes	$	(36	)	$	102		$	700

Expected tax (benefit) expense at U.S. statutory rate of 21%	$	(7	)	$	22		$	146
Change resulting from:
State tax expense, net of federal benefit		(7	)		(1	)		3
Non-U.S. tax rate differentials		(4	)		—			8
Income tax settlement related to 2017 U.S. Tax Reform Act		5			—			—
Loss from liquidation of subsidiaries		10			—			—
Gain on acquisition of assets, net		(13	)		—			—
Impact of equity method investments		(17	)		(28	)		(21	)
Non-U.S. withholding tax on repatriated earnings, interest and royalties, net of U.S. foreign tax credits		14			12			18
Tax authority audits and dispute resolutions		4			5			6
Non-U.S. income subject to U.S. tax not offset by U.S. foreign tax credits		(6	)		3			3
Deferred tax effect of non-U.S. tax rate changes		(2	)		—			(2	)
Stock-based compensation		3			—			(5	)
Other non-U.S. tax effects, including nondeductible expenses and transfer pricing adjustments		8			5			(11	)
Other U.S. tax effects, including nondeductible expenses and other credits		(1	)		2			5
Change in valuation allowance		75			45			38
Total income tax expense	$	62		$	65		$	188

	*December 31,*
	*2024*			*2023*
Deferred income tax assets:
Net operating loss carryforwards	$	289		$	234
Operating leases		95			92
Pension and other employee compensation		57			65
Deferred interest		104			78
Capitalized research and development costs		56			44
Property, plant and equipment		25			22
Intangible assets		9			16
Intercompany prepayments		4			28
Other, net		49			41
Total	$	688		$	620
Deferred income tax liabilities:
Property, plant and equipment	$	(284	)	$	(267	)
Operating leases		(95	)		(93	)
Intangible assets		(74	)		(80	)
Pension and other employee compensation		(52	)		(28	)
Outside basis difference in subsidiaries		(42	)		(41	)
Unrealized currency gains		(16	)		(8	)
Other, net		(5	)		(13	)
Total	$	(568	)	$	(530	)
Net deferred tax asset before valuation allowance	$	120		$	90
Valuation allowance—net operating losses, deferred interest and other		(255	)		(221	)
Net deferred tax liability	$	(135	)	$	(131	)
Non-current deferred tax asset	$	69		$	112
Non-current deferred tax liability		(204	)		(243	)
Net deferred tax liability	$	(135	)	$	(131	)

	*December 31,*
	*2024*			*2023*
Deferred income tax assets:
Net operating loss carryforwards	$	288		$	234
Operating leases		95			92
Pension and other employee compensation		56			65
Deferred interest		104			78
Capitalized research and development costs		55			44
Property, plant and equipment		25			22
Intangible assets		9			16
Intercompany prepayments		4			28
Other, net		49			41
Total	$	685		$	620
Deferred income tax liabilities:
Property, plant and equipment	$	(284	)	$	(267	)
Operating leases		(95	)		(93	)
Intangible assets		(74	)		(80	)
Pension and other employee compensation		(52	)		(28	)
Outside basis difference in subsidiaries		(42	)		(41	)
Unrealized currency gains		(16	)		(8	)
Other, net		(5	)		(17	)
Total	$	(568	)	$	(534	)
Net deferred tax asset before valuation allowance	$	117		$	86
Valuation allowance—net operating losses, deferred interest and other		(255	)		(221	)
Net deferred tax liability	$	(138	)	$	(135	)
Non-current deferred tax asset	$	69		$	112
Non-current deferred tax liability		(207	)		(247	)
Net deferred tax liability	$	(138	)	$	(135	)

	*2024*			*2023*			*2022*
Valuation allowance as of January 1	$	221		$	169		$	131
Valuation allowance as of December 31		255			221			169
Net increase		(34	)		(52	)		(38	)
Foreign currency movements		(13	)		3			(4	)
Decrease to deferred tax assets with no impact on operating tax expense, including an offsetting (decrease) increase to valuation allowances		(28	)		4			4
Change in valuation allowance per rate reconciliation	$	(75	)	$	(45	)	$	(38	)
Components of change in valuation allowance affecting tax expense:
Pre-tax income and losses in jurisdictions with valuation allowances resulting in no tax expense or benefit	$	(46	)	$	(30	)	$	13
Releases of valuation allowances in various jurisdictions		—			1			—
Establishments of valuation allowances in various jurisdictions		(29	)		(16	)		(51	)
Change in valuation allowance per rate reconciliation	$	(75	)	$	(45	)	$	(38	)

	*2024*			*2023*			*2022*
Valuation allowance as of January 1	$	221		$	169		$	131
Valuation allowance as of December 31		255			221			169
Net increase		(34	)		(52	)		(38	)
Foreign currency movements		(13	)		3			(4	)
Decrease to deferred tax assets with no impact on operating tax expense, including an offsetting (decrease) increase to valuation allowances		(28	)		4			4
Change in valuation allowance per rate reconciliation	$	(75	)	$	(45	)	$	(38	)
Components of change in valuation allowance affecting tax expense:
Pre-tax income and losses in jurisdictions with valuation allowances resulting in no tax expense or benefit	$	(46	)	$	(30	)	$	13
Releases of valuation allowances in various jurisdictions		—			1			—
Establishments of valuation allowances in various jurisdictions		(29	)		(16	)		(51	)
Change in valuation allowance per rate reconciliation	$	(75	)	$	(45	)	$	(38	)

	*2024*			*2023*
Unrecognized tax benefits as of January 1	$	5		$	57
Gross increases and decreases—tax positions taken during a prior period		—			(50	)
Gross increases and decreases—tax positions taken during the current period		1			—
Reductions resulting from the lapse of statues of limitations		(1	)		(2	)
Unrecognized tax benefits as of December 31	$	5		$	5

	*Year ended December 31,*
	*2024*		*2023*		*2022*
Interest included in tax expense	$	2	$	3	$	3

	*December 31,*
	*2024*		*2023*
Accrued liability for interest	$	8	$	6