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

Annual report pursuant to Section 13 and 15(d)

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2012

DEFINED BENEFIT AND OTHER POSTRETIREMENT 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 the consolidated balance sheets at December 31, 2012 and 2011 (dollars in millions):

	Defined Benefit Plans												Other Postretirement Benefit Plans

	2012						2011						2012						2011
	U.S. Plans			Non-U.S. Plans			U.S. Plans			Non-U.S. Plans			U.S. Plans			Non-U.S. Plans			U.S. Plans			Non-U.S. Plans
Change in benefit obligation
Benefit obligation at beginning of year	$	834		$	2,331		$	761		$	2,255		$	128		$	7		$	129		$	7
Service cost		26			32			23			44			4			—			3			—
Interest cost		42			102			44			110			6			—			7			1
Participant contributions		—			9			—			14			5			—			5			—
Plan amendments		(26	)		—			—			(1	)		—			—			—			—
Foreign currency exchange rate changes		—			80			—			(13	)		—			—			—			(1	)
Settlements/transfers		—			(2	)		—			(20	)		—			—			—			—
Curtailments		—			—			—			(38	)		—			—			—			—
Special termination benefits		—			—			—			8			—			—			—			—
Actuarial loss		127			360			47			83			9			—			1			—
Benefits paid		(45	)		(157	)		(41	)		(111	)		(16	)		—			(17	)		(1	)

Benefit obligation at end of year	$	958		$	2,755		$	834		$	2,331		$	136		$	7		$	128		$	6

Change in plan assets
Fair value of plan assets at beginning of year	$	538		$	2,026		$	517		$	2,025		$	—		$	—		$	—		$	—
Actual return on plan assets		71			221			(7	)		43			—			—			—			—
Foreign currency exchange rate changes		—			65			—			(10	)		—			—			—			—
Participant contributions		—			9			—			14			5			—			5			—
Other		—			—			—			(1	)		—			—			—			—
Company contributions		72			75			69			86			11			1			12			1
Settlements/transfers		—			(2	)		—			(20	)		—			—			—			—
Benefits paid		(45	)		(157	)		(41	)		(111	)		(16	)		(1	)		(17	)		(1	)

Fair value of plan assets at end of year	$	636		$	2,237		$	538		$	2,026		$	—		$	—		$	—		$	—

Funded status
Fair value of plan assets	$	636		$	2,237		$	538		$	2,026		$	—		$	—		$	—		$	—
Benefit obligation		958			2,755			834			2,331			136			7			128			6

Accrued benefit cost	$	(322	)	$	(518	)	$	(296	)	$	(305	)	$	(136	)	$	(7	)	$	(128	)	$	(6	)

Amounts recognized in balance sheet:
Noncurrent asset	$	—		$	1		$	—		$	100		$	—		$	—		$	—		$	—
Current liability		(6	)		(5	)		(6	)		(6	)		(11	)		(1	)		(12	)		—
Noncurrent liability		(316	)		(514	)		(290	)		(399	)		(125	)		(6	)		(116	)		(6	)

	$	(322	)	$	(518	)	$	(296	)	$	(305	)	$	(136	)	$	(7	)	$	(128	)	$	(6	)

Schedule of amounts recognized in accumulated other comprehensive loss (income)

	Defined Benefit Plans										Other Postretirement Benefit Plans

	2012					2011					2012					2011
	U.S. Plans			Non-U.S. Plans		U.S. Plans			Non-U.S. Plans		U.S. Plans			Non-U.S. Plans		U.S. Plans			Non-U.S. Plans
Amounts recognized in accumulated other comprehensive loss:
Net actuarial loss	$	448		$	797	$	366		$	562	$	32		$	1	$	25		$	1
Prior service cost		(42	)		4		(22	)		2		(8	)		—		(10	)		—
Transition obligation		1			—		1			—		—			—		—			—

	$	407		$	801	$	345		$	564	$	24		$	1	$	15		$	1

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

	Defined Benefit Plans					Other Postretirement Benefit Plans

	U.S. Plans			Non-U.S. Plans		U.S. Plans			Non-U.S. Plans
Actuarial loss	$	34		$	46	$	2		$	—
Prior service cost		(6	)		—		(3	)		—

Total	$	28		$	46	$	(1	)	$	—

Components of the net periodic benefit costs

Components of net periodic benefit costs for the years ended December 31, 2012, 2011 and 2010 were as follows (dollars in millions):

	Defined Benefit Plans

	U.S. plans									Non-U.S. plans
	2012			2011			2010			2012			2011			2010
Service cost	$	26		$	23		$	21		$	32		$	44		$	44
Interest cost		42			44			40			102			110			102
Expected return on plan assets		(48	)		(47	)		(42	)		(133	)		(140	)		(121	)
Amortization of prior service cost		(6	)		(4	)		(5	)		(1	)		(2	)		(1	)
Amortization of actuarial loss		21			16			11			23			16			14
Settlement loss		—			—			—			13			—			—
Special termination benefits		—			—			—			—			8			—

Net periodic benefit cost	$	35		$	32		$	25		$	36		$	36		$	38

	Other Postretirement Benefit Plans

	U.S. plans									Non-U.S. plans
	2012			2011			2010			2012		2011		2010
Service cost	$	4		$	3		$	3		$	—	$	—	$	—
Interest cost		7			7			7			1		1		—
Amortization of prior service cost		(3	)		(3	)		(3	)		—		—		—
Amortization of actuarial loss		2			2			1			—		—		—

Net periodic benefit cost	$	10		$	9		$	8		$	1	$	1	$	—

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 loss as of December 31, 2012, 2011 and 2010 were as follows (dollars in millions):

	Defined Benefit Plans

	U.S. plans									Non-U.S. plans
	2012			2011			2010			2012			2011			2010
Current year actuarial loss	$	103		$	101		$	16		$	272		$	182		$	20
Amortization of actuarial gain		(21	)		(16	)		(11	)		(23	)		(16	)		(14	)
Current year prior service cost		(26	)		—			—			—			(2	)		—
Amortization of prior service cost		6			4			4			1			2			1
Curtailment effects		—			—			—			—			(38	)		—
Settlements		—			—			—			(13	)		—			—

Total recognized in other comprehensive loss		62			89			9			237			128			7
Net periodic benefit cost		35			32			25			36			36			38

Total recognized in net periodic benefit cost and other comprehensive loss	$	97		$	121		$	34		$	273		$	164		$	45

	Other Postretirement Benefit Plans

	U.S. plans									Non-U.S. plans
	2012			2011			2010			2012		2011		2010
Current year actuarial loss	$	9		$	1		$	5		$	—	$	—	$	—
Amortization of actuarial gain		(2	)		(1	)		(2	)		—		—		—
Amortization of prior service cost		3			2			3			—		—		—

Total recognized in other comprehensive loss		10			2			6			—		—		—
Net periodic benefit cost		10			9			8			1		1		—

Total recognized in net periodic benefit cost and other comprehensive loss	$	20		$	11		$	14		$	1	$	1	$	—

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
	2012			2011			2010			2012			2011			2010
Projected benefit obligation
Discount rate		4.18	%		5.30	%		5.70	%		3.38	%		4.39	%		4.69	%
Rate of compensation increase		4.19	%		3.88	%		3.88	%		3.34	%		3.44	%		3.38	%
Net periodic pension cost
Discount rate		5.30	%		5.70	%		5.90	%		4.39	%		4.69	%		4.94	%
Rate of compensation increase		3.88	%		3.88	%		3.88	%		3.44	%		3.38	%		3.23	%
Expected return on plan assets		8.00	%		8.19	%		8.20	%		6.52	%		6.62	%		6.65	%

	Other Postretirement Benefit Plans

	U.S. plans									Non U.S. plans
	2012			2011			2010			2012			2011			2010
Projected benefit obligation
Discount rate		3.89	%		5.09	%		5.46	%		5.79	%		6.09	%		6.69	%
Net periodic pension cost
Discount rate		5.09	%		5.46	%		5.59	%		6.09	%		6.69	%		7.47	%

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

A one-percent point change in assumed health care cost trend rates would have the following effects (dollars in millions):

	Increase		Decrease

Asset category
Effect on total of service and interest cost	$	—	$	—
Effect on postretirement benefit obligation		3.6		(3.1	)

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, 2012 and 2011 were as follows (dollars in millions):

	U.S. plans				Non-U.S. plans

	2012		2011		2012		2011
Projected benefit obligation in excess of plan assets
Projected benefit obligation	$	958	$	834	$	2,742	$	1,897
Fair value of plan assets		636		538		2,223		1,492

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, 2012 and 2011 were as follows (dollars in millions):

	U.S. plans				Non-U.S. plans

	2012		2011		2012		2011
Accumulated benefit obligation in excess of plan assets
Projected benefit obligation	$	958	$	834	$	1,751	$	1,618
Accumulated benefit obligation		925		789		1,603		1,500
Fair value of plan assets		636		538		1,266		1,251

Schedule of expected future contributions and benefit payments

Expected future contributions and benefit payments are as follows (dollars in millions):

	U.S. Plans				Non-U.S. Plans

	Defined Benefit Plans		Other Postretirement Benefit Plans		Defined Benefit Plans		Other Postretirement Benefit Plans
2013 expected employer contributions
To plan trusts	$	73	$	11	$	81	$	1
Expected benefit payments
2013		58		11		175		1
2014		54		11		98		1
2015		53		11		103		1
2016		55		11		105		1
2017		59		11		107		1
2018 - 2022		325		49		578		2

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

Asset category	December 31, 2012		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
U.S. pension plans:
Equities	$	340	$	195	$	145	$	—
Fixed income		196		116		80		—
Real estate/other		89		48		—		41
Cash		11		11		—		—

Total U.S. pension plan assets	$	636	$	370	$	225	$	41

Non-U.S. pension plans:
Equities	$	862	$	649	$	213	$	—
Fixed income		905		632		273		—
Real estate/other		357		27		303		27
Cash		113		112		1		—

Total non-U.S. pension plan assets	$	2,237	$	1,420	$	790	$	27

			Fair Value Amounts Using

Asset category	December 31, 2011		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
U.S. pension plans:
Equities	$	294	$	166	$	128	$	—
Fixed income		170		106		64		—
Real estate/other		72		45		—		27
Cash		2		2		—		—

Total U.S. pension plan assets	$	538	$	319	$	192	$	27

Non-U.S. pension plans:
Equities	$	771	$	361	$	410	$	—
Fixed income		923		304		619		—
Real estate/other		316		1		281		34
Cash		16		16		—		—

Total non-U.S. pension plan assets	$	2,026	$	682	$	1,310	$	34

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

Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3)	Year ended December 31, 2012			Year ended December 31, 2011
Balance at beginning of period	$	61		$	52
Return on pension plan assets		4			(1	)
Purchases, sales and settlements		10			10
Transfers in (out) of Level 3		(7	)		—

Balance at end of period	$	68		$	61

	Fixed Income

Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3)	Year ended December 31, 2012		Year ended December 31, 2011
Balance at beginning of period	$	—	$	1
Purchases, sales and settlements		—		(1	)

Balance at end of period	$	—	$	—

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

Asset category

U.S. pension plans:
Equities	54	%	53	%	55	%
Fixed income	32	%	31	%	32	%
Real estate/other	14	%	14	%	13	%
Cash	—		2	%	—

Total U.S. pension plans	100	%	100	%	100	%

Non-U.S. pension plans:
Equities	40	%	38	%	38	%
Fixed income	40	%	41	%	46	%
Real estate/other	19	%	20	%	15	%
Cash	1	%	1	%	1	%

Total non-U.S. pension plans	100	%	100	%	100	%

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES