Annual report pursuant to Section 13 and 15(d)

EMPLOYEE BENEFIT PLANS (Tables)

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

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

Schedule of amounts recognized in accumulated other comprehensive loss

                                                                                                                                                                                    

 

 

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

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

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

 

$

29

 

$

58

 

$

3

 

$

1

 

Prior service credit

 

 

(2

)

 

(4

)

 

(6

)

 

(3

)

​  

​  

​  

​  

​  

​  

​  

​  

Total

 

$

27

 

$

54

 

$

(3

)

$

(2

)

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

Components of the net periodic benefit costs

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

                                                                                                                                                                                   

 

 

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

 

$

 

$

 

$

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

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) income as of December 31, 2016, 2015 and 2014 were as follows (dollars in millions):

                                                                                                                                                                                   

 

 

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

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

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

 

 

 

2016

 

2015

 

2014

 

2016

 

2015

 

2014

 

Projected benefit obligation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

 

4.24 

%

 

4.90 

%

 

4.25 

%

 

1.82 

%

 

2.53 

%

 

2.48 

%

Rate of compensation increase

 

 

4.17 

%

 

4.17 

%

 

4.16 

%

 

3.51 

%

 

3.23 

%

 

3.23 

%

Net periodic pension cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

 

4.90 

%

 

4.25 

%

 

5.13 

%

 

2.53 

%

 

2.48 

%

 

3.62 

%

Rate of compensation increase

 

 

4.17 

%

 

4.16 

%

 

4.17 

%

 

3.42 

%

 

3.23 

%

 

3.37 

%

Expected return on plan assets

 

 

7.56 

%

 

7.74 

%

 

7.75 

%

 

5.68 

%

 

5.79 

%

 

5.82 

%

 

                                                                                                                                                                                    

 

 

Other Postretirement Benefit Plans

 

 

 

U.S. plans

 

Non-U.S. plans

 

 

 

2016

 

2015

 

2014

 

2016

 

2015

 

2014

 

Projected benefit obligation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

 

4.03 

%

 

4.68 

%

 

4.17 

%

 

3.50 

%

 

7.25 

%

 

6.44 

%

Net periodic pension cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

 

4.68 

%

 

4.20 

%

 

4.79 

%

 

7.25 

%

 

6.44 

%

 

6.49 

%

 

Schedule of effect of 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

 

 

1

 

 

(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, 2016 and 2015 were as follows (dollars in millions):

                                                                                                                                                                                    

 

 

U.S. plans

 

Non-U.S. plans

 

 

 

2016

 

2015

 

2016

 

2015

 

Projected benefit obligation in excess of plan assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Projected benefit obligation

 

$

1,058 

 

$

961 

 

$

3,074 

 

$

2,129 

 

Fair value of plan assets

 

 

728 

 

 

722 

 

 

2,389 

 

 

1,514 

 

 

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, 2016 and 2015 were as follows (dollars in millions):

                                                                                                                                                                                    

 

 

U.S. plans

 

Non-U.S. plans

 

 

 

2016

 

2015

 

2016

 

2015

 

Accumulated benefit obligation in excess of plan assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Projected benefit obligation

 

$

1,058 

 

$

961 

 

$

2,145 

 

$

1,403 

 

Accumulated benefit obligation

 

 

1,031 

 

 

941 

 

 

2,020 

 

 

1,312 

 

Fair value of plan assets

 

 

728 

 

 

722 

 

 

1,487 

 

 

823 

 

 

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

 

2017 expected employer contributions

 

 

 

 

 

 

 

 

 

 

 

 

 

To plan trusts

 

$

54 

 

$

 

$

54 

 

$

 

Expected benefit payments

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

 

66 

 

 

 

 

97 

 

 

 

2018

 

 

90 

 

 

 

 

102 

 

 

 

2019

 

 

66 

 

 

 

 

102 

 

 

 

2020

 

 

65 

 

 

 

 

107 

 

 

 

2021

 

 

67 

 

 

 

 

111 

 

 

 

2022 - 2026

 

 

369 

 

 

37 

 

 

588 

 

 

 

 

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,
2016

 

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

 

$

387 

 

$

276 

 

$

111 

 

$

 

Fixed income

 

 

277 

 

 

212 

 

 

65 

 

 

 

Real estate/other

 

 

64 

 

 

 

 

 

 

64 

 

Cash

 

 

 

 

 

 

 

 

 

​  

​  

​  

​  

​  

​  

​  

​  

Total U.S. pension plan assets

 

$

728 

 

$

488 

 

$

176 

 

$

64 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Non-U.S. pension plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

Equities

 

$

803 

 

$

447 

 

$

356 

 

$

 

Fixed income

 

 

1,137 

 

 

548 

 

 

583 

 

 

 

Real estate/other

 

 

458 

 

 

64 

 

 

326 

 

 

68 

 

Cash

 

 

20 

 

 

20 

 

 

 

 

 

​  

​  

​  

​  

​  

​  

​  

​  

Total Non-U.S. pension plan assets

 

$

2,418 

 

$

1,079 

 

$

1,265 

 

$

74 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

 

                                                                                                                                                                                    

 

 

 

 

Fair Value Amounts Using

 

Asset category

 

December 31,
2015

 

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

 

$

387 

 

$

279 

 

$

108 

 

$

 

Fixed income

 

 

277 

 

 

211 

 

 

66 

 

 

 

Real estate/other

 

 

58 

 

 

 

 

 

 

58 

 

Cash

 

 

 

 

 

 

 

 

 

​  

​  

​  

​  

​  

​  

​  

​  

Total U.S. pension plan assets

 

$

722 

 

$

490 

 

$

174 

 

$

58 

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

Non-U.S. pension plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

Equities

 

$

830 

 

$

446 

 

$

384 

 

$

 

Fixed income

 

 

1,113 

 

 

514 

 

 

599 

 

 

 

Real estate/other

 

 

477 

 

 

84 

 

 

339 

 

 

54 

 

Cash

 

 

11 

 

 

10 

 

 

 

 

 

​  

​  

​  

​  

​  

​  

​  

​  

Total Non-U.S. pension plan assets

 

$

2,431 

 

$

1,054 

 

$

1,323 

 

$

54 

 

​  

​  

​  

​  

​  

​  

​  

​  

​