Annual report pursuant to Section 13 and 15(d)

EMPLOYEE BENEFIT PLANS

v3.6.0.2
EMPLOYEE BENEFIT PLANS
12 Months Ended
Dec. 31, 2016
EMPLOYEE BENEFIT PLANS  
EMPLOYEE BENEFIT PLANS

18. EMPLOYEE BENEFIT PLANS

DEFINED BENEFIT AND OTHER POSTRETIREMENT BENEFIT PLANS

        Our employees participate in a trusteed, non-contributory defined benefit pension plan (the "Plan") that covers substantially all of our full-time U.S. employees. Effective July 1, 2004, the Plan formula for employees not covered by a collective bargaining agreement was converted to a cash balance design. For represented employees, participation in the cash balance design is subject to the terms of negotiated contracts. For participating employees, benefits accrued under the prior formula were converted to opening cash balance accounts. The new cash balance benefit formula provides annual pay credits from 4% to 12% of eligible pay, depending on age and service, plus accrued interest. Participants in the plan on July 1, 2004 may be eligible for additional annual pay credits from 1% to 8%, depending on their age and service as of that date, for up to five years. The conversion to the cash balance plan did not have a significant impact on the accrued benefit liability, the funded status or ongoing pension expense.

        We sponsor defined benefit plans in a number of countries outside of the U.S. The availability of these plans, and their specific design provisions, are consistent with local competitive practices and regulations.

        We also sponsor unfunded postretirement benefit plans other than pensions, which provide medical and life insurance benefits.

        Our postretirement benefit plans provide a fully insured Medicare Part D plan including prescription drug benefits affected by the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the "Act"). We cannot determine whether the medical benefits provided by our postretirement benefit plans are actuarially equivalent to those provided by the Act. We do not collect a subsidy and our net periodic postretirement benefits cost, and related benefit obligation, do not reflect an amount associated with the subsidy.

        Beginning July 1, 2014, the Huntsman Defined Benefit Pension Plan was closed to new non-union entrants and as of April 1, 2015, it was closed to new union entrants. In addition, as of January 1, 2015, Rubicon LLC also closed its defined benefit plan to new entrants. Following the closure of these plans, new hires have been provided with a defined contribution plan with a non-discretionary employer contribution of 6% of pay and a company match of up to 4% of pay, for a total company contribution of up to 10% of pay.

        In connection with the Rockwood Acquisition, we assumed certain pension and other postretirement benefit liabilities in the amount of approximately $233 million as of October 1, 2014.

        The following table sets forth the funded status of the plans for us and Huntsman International and the amounts recognized in our consolidated balance sheets at December 31, 2016 and 2015 (dollars in millions):

                                                                                                                                                                                    

 

 

Defined Benefit Plans

 

Other Postretirement Benefit Plans

 

 

 

2016

 

2015

 

2016

 

2015

 

 

 

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

 

$

961

 

$

3,010

 

$

1,001

 

$

3,317

 

$

88

 

$

5

 

$

137

 

$

6

 

Service cost

 

 

30

 

 

34

 

 

32

 

 

40

 

 

2

 

 

 

 

4

 

 

 

Interest cost

 

 

48

 

 

72

 

 

43

 

 

79

 

 

4

 

 

 

 

5

 

 

 

Participant contributions

 

 

 

 

5

 

 

 

 

6

 

 

2

 

 

 

 

3

 

 

 

Plan amendments

 

 

 

 

 

 

 

 

(31

)

 

 

 

(3

)

 

(40

)

 

 

Foreign currency exchange rate changes

 

 

 

 

(322

)

 

 

 

(210

)

 

 

 

 

 

 

 

(1

)

Settlements/transfers/divestitures

 

 

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

Curtailments

 

 

 

 

(2

)

 

 

 

(4

)

 

 

 

 

 

 

 

 

Special termination benefits

 

 

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

Actuarial (gain) loss

 

 

73

 

 

427

 

 

(65

)

 

(65

)

 

9

 

 

 

 

(9

)

 

 

Benefits paid

 

 

(54

)

 

(119

)

 

(50

)

 

(125

)

 

(11

)

 

 

 

(12

)

 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Benefit obligation at end of year

 

$

1,058

 

$

3,103

 

$

961

 

$

3,010

 

$

94

 

$

2

 

$

88

 

$

5

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Change in plan assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

$

722

 

$

2,431

 

$

761

 

$

2,587

 

$

 

$

 

$

 

$

 

Actual return on plan assets

 

 

55

 

 

322

 

 

(10

)

 

40

 

 

 

 

 

 

 

 

 

Foreign currency exchange rate changes

 

 

 

 

(281

)

 

 

 

(153

)

 

 

 

 

 

 

 

 

Participant contributions

 

 

 

 

5

 

 

 

 

6

 

 

2

 

 

 

 

3

 

 

 

Company contributions

 

 

5

 

 

60

 

 

21

 

 

76

 

 

9

 

 

 

 

9

 

 

 

Benefits paid

 

 

(54

)

 

(119

)

 

(50

)

 

(125

)

 

(11

)

 

 

 

(12

)

 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Fair value of plan assets at end of year

 

$

728

 

$

2,418

 

$

722

 

$

2,431

 

$

 

$

 

$

 

$

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Funded status

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets

 

$

728

 

$

2,418

 

$

722

 

$

2,431

 

$

 

$

 

$

 

$

 

Benefit obligation

 

 

1,058

 

 

3,103

 

 

961

 

 

3,010

 

 

94

 

 

2

 

 

88

 

 

5

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Accrued benefit cost

 

$

(330

)

$

(685

)

$

(239

)

$

(579

)

$

(94

)

$

(2

)

$

(88

)

$

(5

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Amounts recognized in balance sheet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncurrent asset

 

$

 

$

6

 

$

 

$

35

 

$

 

$

 

$

 

$

 

Current liability

 

 

(6

)

 

(5

)

 

(6

)

 

(5

)

 

(8

)

 

 

 

(9

)

 

 

Noncurrent liability

 

 

(324

)

 

(686

)

 

(233

)

 

(609

)

 

(86

)

 

(2

)

 

(79

)

 

(5

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

 

$

(330

)

$

(685

)

$

(239

)

$

(579

)

$

(94

)

$

(2

)

$

(88

)

$

(5

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Huntsman Corporation

                                                                                                                                                                                    

 

 

Defined Benefit Plans

 

Other Postretirement Benefit Plans

 

 

 

2016

 

2015

 

2016

 

2015

 

 

 

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

 

$

407

 

$

1,100

 

$

359

 

$

906

 

$

45

 

$

1

 

$

38

 

$

1

 

Prior service credit

 

 

(17

)

 

(31

)

 

(22

)

 

(34

)

 

(51

)

 

(2

)

 

(58

)

 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

 

$

390

 

$

1,069

 

$

337

 

$

872

 

$

(6

)

$

(1

)

$

(20

)

$

1

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Huntsman International

                                                                                                                                                                                    

 

 

Defined Benefit Plans

 

Other Postretirement Benefit Plans

 

 

 

2016

 

2015

 

2016

 

2015

 

 

 

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

 

$

408

 

$

1,137

 

$

361

 

$

952

 

$

45

 

$

1

 

$

38

 

$

1

 

Prior service credit

 

 

(17

)

 

(31

)

 

(22

)

 

(35

)

 

(51

)

 

(2

)

 

(58

)

 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

 

$

391

 

$

1,106

 

$

339

 

$

917

 

$

(6

)

$

(1

)

$

(20

)

$

1

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

        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):

Huntsman Corporation

                                                                                                                                                                                    

 

 

Defined Benefit Plans

 

Other Postretirement
Benefit Plans

 

 

 

U.S. Plans

 

Non-U.S.
Plans

 

U.S. Plans

 

Non-U.S.
Plans

 

Actuarial loss

 

$

29

 

$

58

 

$

3

 

$

1

 

Prior service credit

 

 

(2

)

 

(4

)

 

(6

)

 

(3

)

​  

​  

​  

​  

​  

​  

​  

​  

Total

 

$

27

 

$

54

 

$

(3

)

$

(2

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Huntsman International

                                                                                                                                                                                    

 

 

Defined Benefit Plans

 

Other Postretirement
Benefit Plans

 

 

 

U.S. Plans

 

Non-U.S.
Plans

 

U.S. Plans

 

Non-U.S.
Plans

 

Actuarial loss

 

$

29

 

$

65

 

$

3

 

$

1

 

Prior service credit

 

 

(2

)

 

(4

)

 

(6

)

 

(3

)

​  

​  

​  

​  

​  

​  

​  

​  

Total

 

$

27

 

$

61

 

$

(3

)

$

(2

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

        Components of net periodic benefit costs for the years ended December 31, 2016, 2015 and 2014 were as follows (dollars in millions):

Huntsman Corporation

                                                                                                                                                                                    

 

 

Defined Benefit Plans

 

 

 

U.S. plans

 

Non-U.S. plans

 

 

 

2016

 

2015

 

2014

 

2016

 

2015

 

2014

 

Service cost

 

$

30

 

$

32

 

$

27

 

$

34

 

$

40

 

$

32

 

Interest cost

 

 

48

 

 

43

 

 

45

 

 

72

 

 

79

 

 

102

 

Expected return on plan assets

 

 

(55

)

 

(57

)

 

(56

)

 

(132

)

 

(143

)

 

(138

)

Amortization of prior service credit

 

 

(5

)

 

(6

)

 

(6

)

 

(4

)

 

 

 

 

Amortization of actuarial loss

 

 

25

 

 

32

 

 

19

 

 

42

 

 

43

 

 

34

 

Settlement loss

 

 

 

 

 

 

 

 

 

 

 

 

13

 

Special termination benefits

 

 

 

 

 

 

 

 

 

 

3

 

 

3

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Net periodic benefit cost

 

$

43

 

$

44

 

$

29

 

$

12

 

$

22

 

$

46

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

                                                                                                                                                                                    

 

 

Other Postretirement Benefit Plans

 

 

 

U.S. plans

 

Non-U.S. plans

 

 

 

2016

 

2015

 

2014

 

2016

 

2015

 

2014

 

Service cost

 

$

2

 

$

4

 

$

3

 

$

 

$

 

$

 

Interest cost

 

 

4

 

 

5

 

 

5

 

 

 

 

 

 

 

Amortization of prior service credit

 

 

(7

)

 

(5

)

 

(4

)

 

 

 

 

 

 

Amortization of actuarial loss

 

 

2

 

 

3

 

 

1

 

 

 

 

 

 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Net periodic benefit cost

 

$

1

 

$

7

 

$

5

 

$

 

$

 

$

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Huntsman International

                                                                                                                                                                                    

 

 

Defined Benefit Plans

 

 

 

U.S. plans

 

Non-U.S. plans

 

 

 

2016

 

2015

 

2014

 

2016

 

2015

 

2014

 

Service cost

 

$

30

 

$

32

 

$

27

 

$

34

 

$

40

 

$

32

 

Interest cost

 

 

48

 

 

43

 

 

45

 

 

72

 

 

79

 

 

102

 

Expected return on plan assets

 

 

(55

)

 

(57

)

 

(56

)

 

(131

)

 

(143

)

 

(138

)

Amortization of prior service credit

 

 

(5

)

 

(6

)

 

(6

)

 

(4

)

 

 

 

 

Amortization of actuarial loss

 

 

25

 

 

32

 

 

19

 

 

49

 

 

51

 

 

41

 

Settlement loss

 

 

 

 

 

 

 

 

 

 

 

 

13

 

Special termination benefits

 

 

 

 

 

 

 

 

 

 

3

 

 

3

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Net periodic benefit cost

 

$

43

 

$

44

 

$

29

 

$

20

 

$

30

 

$

53

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

                                                                                                                                                                                    

 

 

Other Postretirement Benefit Plans

 

 

 

U.S. plans

 

Non-U.S. plans

 

 

 

2016

 

2015

 

2014

 

2016

 

2015

 

2014

 

Service cost

 

$

2

 

$

4

 

$

3

 

$

 

$

 

$

 

Interest cost

 

 

4

 

 

5

 

 

5

 

 

 

 

 

 

 

Amortization of prior service credit

 

 

(7

)

 

(5

)

 

(4

)

 

 

 

 

 

 

Amortization of actuarial loss

 

 

2

 

 

3

 

 

1

 

 

 

 

 

 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Net periodic benefit cost

 

$

1

 

$

7

 

$

5

 

$

 

$

 

$

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

        The amounts recognized in net periodic benefit cost and other comprehensive (loss) income as of December 31, 2016, 2015 and 2014 were as follows (dollars in millions):

Huntsman Corporation

                                                                                                                                                                                    

 

 

Defined Benefit Plans

 

 

 

U.S. plans

 

Non-U.S. plans

 

 

 

2016

 

2015

 

2014

 

2016

 

2015

 

2014

 

Current year actuarial loss

 

$

74

 

$

2

 

$

144

 

$

235

 

$

33

 

$

257

 

Amortization of actuarial loss

 

 

(25

)

 

(32

)

 

(19

)

 

(42

)

 

(43

)

 

(34

)

Current year prior service credit

 

 

 

 

 

 

 

 

 

 

(32

)

 

(6

)

Amortization of prior service credit

 

 

5

 

 

6

 

 

6

 

 

4

 

 

 

 

 

Settlements

 

 

 

 

 

 

 

 

 

 

 

 

(13

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total recognized in other comprehensive loss (income)

 

 

54

 

 

(24

)

 

131

 

 

197

 

 

(42

)

 

204

 

Net periodic benefit cost

 

 

43

 

 

44

 

 

29

 

 

12

 

 

22

 

 

46

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total recognized in net periodic benefit cost and other comprehensive (loss) income

 

$

97

 

$

20

 

$

160

 

$

209

 

$

(20

)

$

250

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

                                                                                                                                                                                    

 

 

Other Postretirement Benefit Plans

 

 

 

U.S. plans

 

Non-U.S. plans

 

 

 

2016

 

2015

 

2014

 

2016

 

2015

 

2014

 

Current year actuarial loss (gain)

 

$

9

 

$

(9

)

$

30

 

$

 

$

 

$

1

 

Amortization of actuarial loss

 

 

(2

)

 

(3

)

 

(1

)

 

 

 

 

 

 

Current year prior service credit

 

 

 

 

(40

)

 

 

 

(2

)

 

 

 

 

Amortization of prior service credit

 

 

7

 

 

5

 

 

4

 

 

 

 

 

 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total recognized in other comprehensive loss (income)

 

 

14

 

 

(47

)

 

33

 

 

(2

)

 

 

 

1

 

Net periodic benefit cost

 

 

1

 

 

7

 

 

5

 

 

 

 

 

 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total recognized in net periodic benefit cost and other comprehensive (loss) income

 

$

15

 

$

(40

)

$

38

 

$

(2

)

$

 

$

1

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Huntsman International

                                                                                                                                                                                    

 

 

Defined Benefit Plans

 

 

 

U.S. plans

 

Non-U.S. plans

 

 

 

2016

 

2015

 

2014

 

2016

 

2015

 

2014

 

Current year actuarial loss

 

$

74

 

$

2

 

$

144

 

$

235

 

$

33

 

$

257

 

Amortization of actuarial loss

 

 

(25

)

 

(32

)

 

(19

)

 

(49

)

 

(51

)

 

(41

)

Current year prior service credit

 

 

 

 

 

 

 

 

 

 

(32

)

 

(6

)

Amortization of prior service credit

 

 

5

 

 

6

 

 

6

 

 

4

 

 

 

 

 

Settlements

 

 

 

 

 

 

 

 

 

 

 

 

(13

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total recognized in other comprehensive loss (income)

 

 

54

 

 

(24

)

 

131

 

 

190

 

 

(50

)

 

197

 

Net periodic benefit cost

 

 

43

 

 

44

 

 

29

 

 

20

 

 

30

 

 

53

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Total recognized in net periodic benefit cost and other comprehensive (loss) income

 

$

97

 

$

20

 

$

160

 

$

210

 

$

(20

)

$

250

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

                                                                                                                                                                                    

 

 

Other Postretirement Benefit Plans

 

 

 

U.S. plans

 

Non-U.S. plans

 

 

 

2016

 

2015

 

2014

 

2016

 

2015

 

2014

 

Current year actuarial loss (gain)

 

$

9

 

$

(9

)

$

30

 

$

 

$

 

$

1

 

Amortization of actuarial loss

 

 

(2

)

 

(3

)

 

(1

)