Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 31, 2019 | Jun. 29, 2018 | |
Document and Entity Information | |||
Entity Registrant Name | Huntsman CORP | ||
Entity Central Index Key | 1,307,954 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 6,285,496,925 | ||
Entity Common Stock, Shares Outstanding | 233,379,080 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Current assets: | |||
Cash and cash equivalents | [1] | $ 340 | $ 470 |
Restricted cash | [1] | 11 | |
Accounts and notes receivable (net of allowance for doubtful accounts of $22 and $25, respectively), ($341 and $334 pledged as collateral, respectively) | [1] | 1,254 | 1,256 |
Accounts receivable from affiliates | 18 | 27 | |
Inventories | [1] | 1,134 | 1,073 |
Prepaid expenses | 66 | 60 | |
Other current assets | [1] | 146 | 202 |
Current assets held for sale | 2,880 | ||
Total current assets | 2,958 | 5,979 | |
Property, plant and equipment, net | [1] | 3,064 | 3,098 |
Investment in unconsolidated affiliates | 526 | 266 | |
Intangible assets, net | [1] | 219 | 56 |
Goodwill | 275 | 140 | |
Deferred income taxes | 324 | 208 | |
Notes receivable from affiliate | 34 | ||
Other noncurrent assets | [1] | 553 | 497 |
Total assets | 7,953 | 10,244 | |
Current liabilities: | |||
Accounts payable | [1] | 929 | 946 |
Accounts payable to affiliates | 32 | 18 | |
Accrued liabilities | [1] | 554 | 569 |
Current portion of debt | [1] | 96 | 40 |
Current liabilities held for sale | 1,692 | ||
Total current liabilities | 1,611 | 3,265 | |
Long-term debt | [1] | 2,224 | 2,258 |
Deferred income taxes | 296 | 264 | |
Other noncurrent liabilities | [1] | 1,073 | 1,086 |
Total liabilities | 5,204 | 6,873 | |
Commitments and contingencies (Notes 19 and 20) | |||
Huntsman Corporation stockholders' equity or Huntsman International LLC members' equity: | |||
Common stock $0.01 par value, 1,200,000,000 shares authorized, 256,006,849 and 252,759,715 shares issued and 232,994,172 and 240,213,606 shares outstanding, respectively | 3 | 3 | |
Additional paid-in capital | 3,984 | 3,889 | |
Treasury stock, 23,012,680 and 12,607,223 shares, respectively | (427) | (150) | |
Unearned stock-based compensation | (16) | (15) | |
Retained earnings (accumulated deficit) | 292 | 161 | |
Accumulated other comprehensive loss | (1,316) | (1,268) | |
Total Huntsman Corporation stockholders' equity | 2,520 | 2,620 | |
Noncontrolling interests in subsidiaries | 229 | 751 | |
Total equity | 2,749 | 3,371 | |
Total liabilities and equity | 7,953 | 10,244 | |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Current assets: | |||
Cash and cash equivalents | [1] | 340 | 468 |
Restricted cash | [1] | 11 | |
Accounts and notes receivable (net of allowance for doubtful accounts of $22 and $25, respectively), ($341 and $334 pledged as collateral, respectively) | [1] | 1,254 | 1,255 |
Accounts receivable from affiliates | 399 | 373 | |
Inventories | [1] | 1,134 | 1,073 |
Prepaid expenses | 65 | 59 | |
Other current assets | [1] | 148 | 204 |
Current assets held for sale | 2,880 | ||
Total current assets | 3,340 | 6,323 | |
Property, plant and equipment, net | [1] | 3,064 | 3,095 |
Investment in unconsolidated affiliates | 526 | 266 | |
Intangible assets, net | [1] | 219 | 56 |
Goodwill | 275 | 140 | |
Deferred income taxes | 324 | 208 | |
Notes receivable from affiliate | 34 | ||
Other noncurrent assets | [1] | 553 | 497 |
Total assets | 8,335 | 10,585 | |
Current liabilities: | |||
Accounts payable | [1] | 929 | 946 |
Accounts payable to affiliates | 104 | 70 | |
Accrued liabilities | [1] | 551 | 566 |
Notes payable to affiliates | 100 | 100 | |
Current portion of debt | [1] | 96 | 40 |
Current liabilities held for sale | 1,692 | ||
Total current liabilities | 1,780 | 3,414 | |
Long-term debt | [1] | 2,224 | 2,258 |
Notes payable to affiliates | 488 | 742 | |
Deferred income taxes | 294 | 265 | |
Other noncurrent liabilities | [1] | 1,061 | 1,072 |
Total liabilities | 5,847 | 7,751 | |
Commitments and contingencies (Notes 19 and 20) | |||
Huntsman Corporation stockholders' equity or Huntsman International LLC members' equity: | |||
Members' equity, 2,728 units issued and outstanding | 3,658 | 3,616 | |
Retained earnings (accumulated deficit) | (91) | (270) | |
Accumulated other comprehensive loss | (1,308) | (1,263) | |
Total Huntsman International LLC members' equity | 2,259 | 2,083 | |
Noncontrolling interests in subsidiaries | 229 | 751 | |
Total equity | 2,488 | 2,834 | |
Total liabilities and equity | $ 8,335 | $ 10,585 | |
[1] | At December 31, 2018 and December 31, 2017, respectively, $7 and $15 of cash and cash equivalents, nil and $11 of restricted cash, 30 and $35 of accounts and notes receivable (net), $49 and $46 of inventories, $5 and $7 of other current assets, $265 and $283 of property, plant and equipment (net), $10 each of intangible assets (net), $52 and $43 of other noncurrent assets, $123 and $109 of accounts payable, $30 and $32 of accrued liabilities, $25 and $21 of current portion of debt, $61 and $86 of longterm debt, and $97 and $98 of other noncurrent liabilities from consolidated variable interest entities are included in the respective Balance Sheet captions above. See “Note 8. Variable Interest Entities.” |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts and notes receivable, allowance for doubtful accounts (in dollars) | $ 22 | $ 25 | |
Accounts and notes receivable, pledged as collateral (in dollars) | $ 341 | $ 334 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 1,200,000,000 | 1,200,000,000 | |
Common stock, shares issued | 256,006,849 | 252,759,715 | |
Common stock, shares outstanding | 232,994,172 | 240,213,606 | |
Treasury stock, shares | 23,012,680 | 12,607,223 | |
Variable Interest Entity | |||
Cash and cash equivalents | [1] | $ 340 | $ 470 |
Restricted cash | [1] | 11 | |
Accounts and notes receivable (net) | [1] | 1,254 | 1,256 |
Inventories | [1] | 1,134 | 1,073 |
Other current assets | [1] | 146 | 202 |
Property, plant and equipment (net) | [1] | 3,064 | 3,098 |
Intangible assets (net) | [1] | 219 | 56 |
Other noncurrent assets | [1] | 553 | 497 |
Accounts payable | [1] | 929 | 946 |
Accrued liabilities | [1] | 554 | 569 |
Current portion of debt | [1] | 96 | 40 |
Long-term debt | [1] | 2,224 | 2,258 |
Other noncurrent liabilities | [1] | 1,073 | 1,086 |
Consolidated VIE's | |||
Variable Interest Entity | |||
Cash and cash equivalents | 7 | 15 | |
Restricted cash | 0 | 11 | |
Accounts and notes receivable (net) | 30 | 35 | |
Inventories | 49 | 46 | |
Other current assets | 5 | 7 | |
Property, plant and equipment (net) | 265 | 283 | |
Intangible assets (net) | 10 | 10 | |
Other noncurrent assets | 52 | 43 | |
Accounts payable | 123 | 109 | |
Accrued liabilities | 30 | 32 | |
Current portion of debt | 25 | 21 | |
Long-term debt | 61 | 86 | |
Other noncurrent liabilities | 97 | 98 | |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Accounts and notes receivable, allowance for doubtful accounts (in dollars) | 22 | 25 | |
Accounts and notes receivable, pledged as collateral (in dollars) | $ 341 | $ 334 | |
Members' equity, units issued (in units) | 2,728 | 2,728 | |
Members' equity, units outstanding (in units) | 2,728 | 2,728 | |
Variable Interest Entity | |||
Cash and cash equivalents | [1] | $ 340 | $ 468 |
Restricted cash | [1] | 11 | |
Accounts and notes receivable (net) | [1] | 1,254 | 1,255 |
Inventories | [1] | 1,134 | 1,073 |
Other current assets | [1] | 148 | 204 |
Property, plant and equipment (net) | [1] | 3,064 | 3,095 |
Intangible assets (net) | [1] | 219 | 56 |
Other noncurrent assets | [1] | 553 | 497 |
Accounts payable | [1] | 929 | 946 |
Accrued liabilities | [1] | 551 | 566 |
Current portion of debt | [1] | 96 | 40 |
Long-term debt | [1] | 2,224 | 2,258 |
Other noncurrent liabilities | [1] | 1,061 | 1,072 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Consolidated VIE's | |||
Variable Interest Entity | |||
Cash and cash equivalents | 7 | 15 | |
Restricted cash | 0 | 11 | |
Accounts and notes receivable (net) | 30 | 35 | |
Inventories | 49 | 46 | |
Other current assets | 5 | 7 | |
Property, plant and equipment (net) | 265 | 283 | |
Intangible assets (net) | 10 | 10 | |
Other noncurrent assets | 52 | 43 | |
Accounts payable | 123 | 109 | |
Accrued liabilities | 30 | 32 | |
Current portion of debt | 25 | 21 | |
Long-term debt | 61 | 86 | |
Other noncurrent liabilities | $ 97 | $ 98 | |
[1] | At December 31, 2018 and December 31, 2017, respectively, $7 and $15 of cash and cash equivalents, nil and $11 of restricted cash, 30 and $35 of accounts and notes receivable (net), $49 and $46 of inventories, $5 and $7 of other current assets, $265 and $283 of property, plant and equipment (net), $10 each of intangible assets (net), $52 and $43 of other noncurrent assets, $123 and $109 of accounts payable, $30 and $32 of accrued liabilities, $25 and $21 of current portion of debt, $61 and $86 of longterm debt, and $97 and $98 of other noncurrent liabilities from consolidated variable interest entities are included in the respective Balance Sheet captions above. See “Note 8. Variable Interest Entities.” |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||
Total revenues | $ 9,379 | $ 8,358 | $ 7,518 |
Cost of goods sold | 7,354 | 6,552 | 6,000 |
Gross profit | 2,025 | 1,806 | 1,518 |
Operating expenses: | |||
Selling, general and administrative | 830 | 798 | 772 |
Research and development | 152 | 138 | 137 |
Restructuring, impairment and plant closing (credits) costs | (5) | 20 | 47 |
Merger costs | 2 | 28 | |
Other operating expense (income), net | 8 | (23) | (101) |
Total operating expenses | 987 | 961 | 855 |
Operating income | 1,038 | 845 | 663 |
Interest expense | (115) | (165) | (203) |
Equity in income of investment in unconsolidated affiliates | 55 | 13 | 5 |
Fair value adjustments to Venator investment | (62) | ||
Loss on early extinguishment of debt | (3) | (54) | (3) |
Other income, net | 29 | 8 | 12 |
Income from continuing operations before income taxes | 942 | 647 | 474 |
Income tax expense | (97) | (64) | (109) |
Income from continuing operations | 845 | 583 | 365 |
(Loss) income from discontinued operations, net of tax | (195) | 158 | (8) |
Net income | 650 | 741 | 357 |
Net income attributable to noncontrolling interests | (313) | (105) | (31) |
Net income attributable to Huntsman Corporation or Huntsman International LLC | $ 337 | $ 636 | $ 326 |
Basic (loss) income per share: | |||
Income from continuing operations attributable to Huntsman Corporation common stockholders (in dollars per share) | $ 3.21 | $ 2.01 | $ 1.41 |
(Loss) income from discontinued operations attributable to Huntsman Corporation common stockholders, net of tax x (in dollars per share) | (1.79) | 0.66 | (0.03) |
Net income attributable to Huntsman Corporation common stockholders (in dollars per share) | $ 1.42 | $ 2.67 | $ 1.38 |
Weighted average shares (in shares) | 238.1 | 238.4 | 236.3 |
Diluted (loss) income per share: | |||
Income from continuing operations attributable to Huntsman Corporation common stockholders (in dollars per share) | $ 3.16 | $ 1.96 | $ 1.39 |
(Loss) income from discontinued operations attributable to Huntsman Corporation common stockholders, net of tax | (1.77) | 0.65 | (0.03) |
Net income attributable to Huntsman Corporation common stockholders (in dollars per share) | $ 1.39 | $ 2.61 | $ 1.36 |
Weighted average shares (in shares) | 241.6 | 243.9 | 239.6 |
Amounts attributable to Huntsman Corporation common stockholders: | |||
Income from continuing operations | $ 764 | $ 478 | $ 334 |
(Loss) income from discontinued operations, net of tax | (427) | 158 | (8) |
Net income attributable to Huntsman Corporation or Huntsman International LLC | 337 | 636 | 326 |
Third Party Customers | |||
Revenues: | |||
Total revenues | 9,220 | 8,208 | 7,387 |
Related Party Customers | |||
Revenues: | |||
Total revenues | 159 | 150 | 131 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Revenues: | |||
Total revenues | 9,379 | 8,358 | 7,518 |
Cost of goods sold | 7,351 | 6,546 | 5,993 |
Gross profit | 2,028 | 1,812 | 1,525 |
Operating expenses: | |||
Selling, general and administrative | 825 | 793 | 768 |
Research and development | 152 | 138 | 137 |
Restructuring, impairment and plant closing (credits) costs | (5) | 20 | 47 |
Merger costs | 2 | 28 | |
Other operating expense (income), net | 8 | (23) | (101) |
Total operating expenses | 982 | 956 | 851 |
Operating income | 1,046 | 856 | 674 |
Interest expense | (136) | (181) | (215) |
Equity in income of investment in unconsolidated affiliates | 55 | 13 | 5 |
Fair value adjustments to Venator investment | (62) | ||
Loss on early extinguishment of debt | (3) | (54) | (3) |
Other income, net | 24 | 6 | 14 |
Income from continuing operations before income taxes | 924 | 640 | 475 |
Income tax expense | (93) | (61) | (108) |
Income from continuing operations | 831 | 579 | 367 |
(Loss) income from discontinued operations, net of tax | (195) | 155 | (13) |
Net income | 636 | 734 | 354 |
Net income attributable to noncontrolling interests | (313) | (105) | (31) |
Net income attributable to Huntsman Corporation or Huntsman International LLC | 323 | 629 | 323 |
Amounts attributable to Huntsman Corporation common stockholders: | |||
Net income attributable to Huntsman Corporation or Huntsman International LLC | 323 | 629 | 323 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Third Party Customers | |||
Revenues: | |||
Total revenues | 9,220 | 8,208 | 7,387 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Related Party Customers | |||
Revenues: | |||
Total revenues | $ 159 | $ 150 | $ 131 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income | $ 650 | $ 741 | $ 357 |
Other comprehensive income (loss), net of tax | |||
Foreign currency translation adjustments | (192) | 210 | (171) |
Pension and other postretirement benefits adjustments | (39) | 86 | (219) |
Other, net | (9) | (1) | |
Other comprehensive (loss) income, net of tax | (240) | 296 | (391) |
Comprehensive income (loss) | 410 | 1,037 | (34) |
Comprehensive income attributable to noncontrolling interests | (266) | (127) | (23) |
Comprehensive income (loss) attributable to Huntsman Corporation | 144 | 910 | (57) |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Net income | 636 | 734 | 354 |
Other comprehensive income (loss), net of tax | |||
Foreign currency translation adjustments | (194) | 210 | (170) |
Pension and other postretirement benefits adjustments | (37) | 112 | (212) |
Other, net | (6) | (1) | (1) |
Other comprehensive (loss) income, net of tax | (237) | 321 | (383) |
Comprehensive income (loss) | 399 | 1,055 | (29) |
Comprehensive income attributable to noncontrolling interests | (266) | (127) | (23) |
Comprehensive income (loss) attributable to Huntsman Corporation | $ 133 | $ 928 | $ (52) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIESMembers' equity | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIESRetained earnings (accumulated deficit) | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIESAccumulated other comprehensive (loss) income | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIESNoncontrolling interests in subsidiaries | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Common stock | Additional paid-in capital | Treasury stock | Unearned stock-based compensation | Retained earnings (accumulated deficit) | Accumulated other comprehensive (loss) income | Noncontrolling interests in subsidiaries | Total |
Balance at the beginning of the period at Dec. 31, 2015 | $ 3 | $ 3,407 | $ (135) | $ (17) | $ (528) | $ (1,288) | $ 187 | $ 1,629 | |||||
Balance (in shares) at Dec. 31, 2015 | 237,080,026 | ||||||||||||
Balance at the beginning of the period at Dec. 31, 2015 | $ 3,196 | $ (983) | $ (1,316) | $ 187 | $ 1,084 | ||||||||
Balance (in units) at Dec. 31, 2015 | 2,728 | ||||||||||||
Increase (Decrease) in Stockholders' Equity and Members' Equity | |||||||||||||
Net income | 323 | 31 | 354 | 326 | 31 | 357 | |||||||
Dividends paid to parent | (119) | (119) | |||||||||||
Other comprehensive income (loss) | (375) | (8) | (383) | (383) | (8) | (391) | |||||||
Contribution from parent | $ 33 | 33 | |||||||||||
Issuance of nonvested stock awards | 16 | (16) | |||||||||||
Vesting of stock awards | 2 | 2 | |||||||||||
Vesting of stock awards (in shares) | 914,081 | ||||||||||||
Recognition of stock-based compensation | 9 | 16 | 25 | ||||||||||
Repurchase and cancellation of stock awards | (3) | (3) | |||||||||||
Repurchase and cancellation of stock awards (in shares) | (256,468) | ||||||||||||
Dividends paid to noncontrolling interests | (30) | (30) | (30) | (30) | |||||||||
Stock options exercised | 1 | 1 | |||||||||||
Stock options exercised (in shares) | 77,477 | ||||||||||||
Repurchase of common stock | 15 | (15) | |||||||||||
Repurchase of common stock (in shares) | (1,444,769) | ||||||||||||
Excess tax benefit related to stock‑based compensation | (3) | (3) | (3) | (3) | |||||||||
Dividends declared on common stock | (120) | (120) | |||||||||||
Balance at the end of the period at Dec. 31, 2016 | $ 3 | 3,447 | (150) | (17) | (325) | (1,671) | 180 | 1,467 | |||||
Balance (in shares) at Dec. 31, 2016 | 236,370,347 | ||||||||||||
Balance at the end of the period at Dec. 31, 2016 | $ 3,226 | (779) | (1,691) | 180 | 936 | ||||||||
Balance (in units) at Dec. 31, 2016 | 2,728 | ||||||||||||
Increase (Decrease) in Stockholders' Equity and Members' Equity | |||||||||||||
Net income | 629 | 105 | 734 | 636 | 105 | 741 | |||||||
Dividends paid to parent | (120) | (120) | |||||||||||
Other comprehensive income (loss) | 428 | (107) | 321 | 403 | (107) | 296 | |||||||
Contribution from parent | $ 35 | 35 | |||||||||||
Issuance of nonvested stock awards | 18 | (18) | |||||||||||
Vesting of stock awards | 8 | 8 | |||||||||||
Vesting of stock awards (in shares) | 1,316,975 | ||||||||||||
Recognition of stock-based compensation | 10 | 18 | 28 | ||||||||||
Repurchase and cancellation of stock awards | (12) | (12) | |||||||||||
Repurchase and cancellation of stock awards (in shares) | (402,978) | ||||||||||||
Dividends paid to noncontrolling interests | (34) | (34) | |||||||||||
Stock options exercised | 53 | (18) | 35 | ||||||||||
Stock options exercised (in shares) | 2,929,262 | ||||||||||||
Disposition of a portion of Venator | 413 | 413 | 413 | 413 | |||||||||
Costs of public offering of venator | (58) | (58) | (58) | (58) | |||||||||
Noncontrolling interest from partial disposal of Venator | 602 | 602 | 602 | 602 | |||||||||
Conversion of restricted awards to Venator awards | (2) | 2 | |||||||||||
Excess tax benefit related to stock‑based compensation | (34) | (34) | |||||||||||
Contribution from noncontrolling interests | 5 | 5 | 5 | 5 | |||||||||
Dividends declared on common stock | (120) | (120) | |||||||||||
Balance at the end of the period at Dec. 31, 2017 | $ 3 | 3,889 | (150) | (15) | 161 | (1,268) | 751 | $ 3,371 | |||||
Balance (in shares) at Dec. 31, 2017 | 240,213,606 | 240,213,606 | |||||||||||
Balance at the end of the period at Dec. 31, 2017 | $ 3,616 | (270) | (1,263) | 751 | $ 2,834 | ||||||||
Balance (in units) at Dec. 31, 2017 | 2,728 | 2,728 | |||||||||||
Increase (Decrease) in Stockholders' Equity and Members' Equity | |||||||||||||
Cumulative effect of changes in fair value of equity investments | ASU 2016-01 | 10 | (10) | 10 | (10) | |||||||||
Net income | 323 | 313 | $ 636 | 337 | 313 | $ 650 | |||||||
Dividends paid to parent | (154) | (154) | |||||||||||
Other comprehensive income (loss) | (195) | (42) | (237) | (198) | (42) | (240) | |||||||
Contribution from parent | $ 26 | 26 | |||||||||||
Issuance of nonvested stock awards | 14 | (14) | |||||||||||
Vesting of stock awards | 11 | 11 | |||||||||||
Vesting of stock awards (in shares) | 1,135,003 | ||||||||||||
Recognition of stock-based compensation | 8 | 13 | 21 | ||||||||||
Repurchase and cancellation of stock awards | (30) | (30) | |||||||||||
Repurchase and cancellation of stock awards (in shares) | (259,643) | ||||||||||||
Dividends paid to noncontrolling interests | (69) | (69) | |||||||||||
Stock options exercised | 46 | (29) | 17 | ||||||||||
Stock options exercised (in shares) | 2,310,663 | ||||||||||||
Repurchase of common stock | (277) | $ (277) | |||||||||||
Repurchase of common stock (in shares) | (10,405,457) | (10,405,457) | |||||||||||
Disposition of a portion of Venator | 18 | 18 | 18 | $ 18 | |||||||||
Costs of public offering of venator | (2) | (2) | (2) | (2) | |||||||||
Noncontrolling interest from partial disposal of Venator | 27 | 27 | 27 | 27 | |||||||||
Accrued and unpaid dividends | (1) | (1) | |||||||||||
Dividends declared on common stock | (69) | (69) | (156) | (156) | |||||||||
Deconsolidation of Venator | 160 | (751) | (591) | 160 | (751) | (591) | |||||||
Balance at the end of the period at Dec. 31, 2018 | $ 3 | $ 3,984 | $ (427) | $ (16) | $ 292 | $ (1,316) | $ 229 | $ 2,749 | |||||
Balance (in shares) at Dec. 31, 2018 | 232,994,172 | 232,994,172 | |||||||||||
Balance at the end of the period at Dec. 31, 2018 | $ 3,658 | $ (91) | $ (1,308) | $ 229 | $ 2,488 | ||||||||
Balance (in units) at Dec. 31, 2018 | 2,728 | 2,728 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | Feb. 07, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
CONSOLIDATED STATEMENTS OF EQUITY | ||||
Dividends declared per share (in dollars per share) | $ 0.1625 | $ 0.65 | $ 0.50 | $ 0.50 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Activities: | |||
Net income | $ 650 | $ 741 | $ 357 |
Less: Loss (income) from discontinued operations, net of tax | 195 | (158) | 8 |
Income from continuing operations | 845 | 583 | 365 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities from continuing operations: | |||
Equity in income of investment in unconsolidated affiliates | (55) | (13) | (5) |
Unrealized losses on fair value adjustments to Venator investment | 62 | ||
Depreciation and amortization | 343 | 319 | 318 |
Loss (gain) on disposal of businesses/assets, net | 4 | (6) | (94) |
Loss on early extinguishment of debt | 3 | 54 | 3 |
Noncash interest expense | 1 | 8 | 16 |
Noncash restructuring and impairment (credits) charges | (22) | 1 | (4) |
Deferred income taxes | (116) | (55) | 4 |
Noncash gain on foreign currency transactions | (3) | (5) | (2) |
Stock-based compensation | 27 | 36 | 32 |
Other, net | 5 | 6 | 3 |
Changes in operating assets and liabilities, net of effects of acquisitions: | |||
Accounts and notes receivable | (13) | (183) | (25) |
Inventories | (86) | (104) | 177 |
Prepaid expenses | (9) | (11) | 5 |
Other current assets | 60 | 24 | 12 |
Other noncurrent assets | (76) | (60) | 44 |
Accounts payable | 8 | 154 | 46 |
Accrued liabilities | 43 | 63 | 123 |
Other noncurrent liabilities | (58) | 31 | (44) |
Net cash provided by operating activities from continuing operations | 963 | 842 | 974 |
Net cash provided by operating activities from discontinued operations | 244 | 377 | 114 |
Net cash provided by operating activities | 1,207 | 1,219 | 1,088 |
Investing Activities: | |||
Capital expenditures | (313) | (282) | (318) |
Investment in unconsolidated affiliates | (1) | ||
Acquisition of businesses, net of cash acquired | (366) | (14) | |
Proceeds from sale of businesses/assets | 25 | 199 | |
Cash received from termination of cross-currency interest rate contracts | 7 | ||
Cash received from forward swap contract related to the sale of investment | 3 | ||
Other, net | (1) | (1) | |
Net cash used in investing activities from continuing operations | (677) | (265) | (120) |
Net cash used in investing activities from discontinued operations | (296) | (159) | (83) |
Net cash used in investing activities | (973) | (424) | (203) |
Financing Activities: | |||
Net borrowings (repayments) under revolving loan facilities | 125 | (41) | |
Net (repayments) borrowings on overdraft facilities | (1) | 1 | (1) |
Repayments of short-term debt | (8) | (15) | (56) |
Borrowings on short-term debt | 6 | 8 | 10 |
Repayments of long-term debt | (68) | (2,058) | (1,070) |
Proceeds from long-term debt of Venator | 750 | ||
Proceeds from issuance of long-term debt | 24 | 559 | |
Repayments of notes payable | (29) | (27) | (33) |
Borrowings on notes payable | 27 | 31 | 31 |
Debt issuance costs paid | (4) | (21) | (9) |
Call premiums related to early extinguishment of debt | (1) | ||
Dividends paid to noncontrolling interests | (69) | (34) | (30) |
Contribution from noncontrolling interests | 5 | ||
Dividends paid to common stockholders | (156) | (120) | (120) |
Repurchase and cancellation of stock awards | (30) | (12) | (3) |
Proceeds from issuance of common stock | 17 | 35 | 1 |
Repurchase of common stock | (277) | ||
Proceeds from the IPO of Venator | 1,012 | ||
Cash paid for expenses for the IPO of Venator | (58) | ||
Proceeds from the secondary offering of Venator | 44 | ||
Cash paid for expenses of the secondary offering of Venator | (2) | ||
Other, net | 1 | 1 | (1) |
Net cash used in financing activities | (424) | (519) | (723) |
Effect of exchange rate changes on cash | (35) | 18 | (6) |
(Decrease) increase in cash, cash equivalents and restricted cash | (225) | 294 | 156 |
Cash, cash equivalents and restricted cash from continuing operations at beginning of period | 481 | 396 | 248 |
Cash, cash equivalents and restricted cash from discontinued operations at beginning of period | 238 | 29 | 21 |
Deconsolidation of cash, cash equivalents and restricted cash from Venator | (154) | ||
Cash, cash equivalents and restricted cash at end of period | 340 | 719 | 425 |
Supplemental cash flow information: | |||
Cash paid for interest | 163 | 175 | 205 |
Cash paid for income taxes | 179 | 25 | 40 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Operating Activities: | |||
Net income | 636 | 734 | 354 |
Less: Loss (income) from discontinued operations, net of tax | 195 | (155) | 13 |
Income from continuing operations | 831 | 579 | 367 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities from continuing operations: | |||
Equity in income of investment in unconsolidated affiliates | (55) | (13) | (5) |
Unrealized losses on fair value adjustments to Venator investment | 62 | ||
Depreciation and amortization | 340 | 311 | 306 |
Loss (gain) on disposal of businesses/assets, net | 4 | (6) | (94) |
Loss on early extinguishment of debt | 3 | 54 | 3 |
Noncash interest expense | 22 | 25 | 27 |
Noncash restructuring and impairment (credits) charges | (22) | 1 | (4) |
Deferred income taxes | (121) | (50) | 3 |
Noncash gain on foreign currency transactions | (3) | (5) | (2) |
Noncash compensation | 26 | 35 | 31 |
Other, net | 7 | 7 | 1 |
Changes in operating assets and liabilities, net of effects of acquisitions: | |||
Accounts and notes receivable | (14) | (181) | (25) |
Inventories | (86) | (104) | 177 |
Prepaid expenses | (8) | (10) | 5 |
Other current assets | 60 | 21 | 12 |
Other noncurrent assets | (76) | (60) | 44 |
Accounts payable | (13) | 138 | 35 |
Accrued liabilities | 43 | 57 | 123 |
Other noncurrent liabilities | (54) | 37 | (36) |
Net cash provided by operating activities from continuing operations | 946 | 836 | 968 |
Net cash provided by operating activities from discontinued operations | 244 | 372 | 110 |
Net cash provided by operating activities | 1,190 | 1,208 | 1,078 |
Investing Activities: | |||
Capital expenditures | (313) | (282) | (318) |
Investment in unconsolidated affiliates | (1) | ||
Acquisition of businesses, net of cash acquired | (366) | (14) | |
Proceeds from sale of businesses/assets | 25 | 199 | |
Increase in receivable in affiliate | (16) | (15) | 6 |
Cash received from termination of cross-currency interest rate contracts | 7 | ||
Cash received from forward swap contract related to the sale of investment | 3 | ||
Other, net | 1 | ||
Net cash used in investing activities from continuing operations | (692) | (279) | (113) |
Net cash used in investing activities from discontinued operations | (296) | (159) | (83) |
Net cash used in investing activities | (988) | (438) | (196) |
Financing Activities: | |||
Net borrowings (repayments) under revolving loan facilities | 125 | (41) | |
Net (repayments) borrowings on overdraft facilities | (1) | 1 | (1) |
Repayments of short-term debt | (8) | (15) | (56) |
Borrowings on short-term debt | 6 | 8 | 10 |
Repayments of long-term debt | (68) | (2,058) | (1,070) |
Proceeds from long-term debt of Venator | 750 | ||
Proceeds from issuance of long-term debt | 24 | 559 | |
Repayments of notes payable to affiliate | (255) | (1) | |
Proceeds from issuance of notes payable to affiliate | 47 | ||
Repayments of notes payable | (29) | (27) | (33) |
Borrowings on notes payable | 27 | 31 | 31 |
Debt issuance costs paid | (4) | (21) | (9) |
Call premiums related to early extinguishment of debt | (1) | ||
Dividends paid to noncontrolling interests | (69) | (34) | (30) |
Contribution from noncontrolling interests | 5 | ||
Dividends paid to parent | (154) | (120) | (119) |
Proceeds from the IPO of Venator | 1,012 | ||
Cash paid for expenses for the IPO of Venator | (58) | ||
Proceeds from the secondary offering of Venator | 44 | ||
Cash paid for expenses of the secondary offering of Venator | (2) | ||
Other, net | (2) | 1 | (1) |
Net cash used in financing activities | (390) | (495) | (721) |
Effect of exchange rate changes on cash | (35) | 18 | (6) |
(Decrease) increase in cash, cash equivalents and restricted cash | (223) | 293 | 155 |
Cash, cash equivalents and restricted cash from continuing operations at beginning of period | 479 | 395 | 248 |
Cash, cash equivalents and restricted cash from discontinued operations at beginning of period | 238 | 29 | 21 |
Deconsolidation of cash, cash equivalents and restricted cash from Venator | (154) | ||
Cash, cash equivalents and restricted cash at end of period | 340 | 717 | 424 |
Supplemental cash flow information: | |||
Cash paid for interest | 163 | 175 | 139 |
Cash paid for income taxes | $ 179 | $ 25 | $ 40 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Capital expenditures in accounts payable | $ 66 | $ 51 | $ 61 |
Cash paid for interest by Venator after IPO date | 46 | 6 | |
Cash paid for income taxes by Venator after IPO date | 38 | 16 | |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Capital expenditures in accounts payable | 66 | 51 | 61 |
Stock-based compensation | 26 | 35 | $ 31 |
Cash paid for interest by Venator after IPO date | 46 | 6 | |
Cash paid for income taxes by Venator after IPO date | $ 38 | $ 16 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2018 | |
GENERAL | |
GENERAL | 1. GENERAL Definitions For convenience in this report, the terms “Company,” “our” or “we” may be used to refer to Huntsman Corporation and, unless the context otherwise requires, its subsidiaries and predecessors. Any references to the “Company” “we” “us” or “our” as of a date prior to October 19, 2004 (the date of our Company’s formation) are to Huntsman Holdings, LLC and its subsidiaries (including their respective predecessors). In this report, “Huntsman International” refers to Huntsman International LLC (our 100% owned subsidiary) and, unless the context otherwise requires, its subsidiaries; “AAC” refers to Arabian Amines Company, our consolidated manufacturing joint venture with the Zamil Group; “HPS” refers to Huntsman Polyurethanes Shanghai Ltd. (our consolidated splitting joint venture with Shanghai Chlor-Alkali Chemical Company, Ltd); “Sasol-Huntsman” refers to Sasol-Huntsman GmbH and Co. KG (our consolidated joint venture with Sasol that owns and operates a maleic anhydride facility in Moers, Germany); and “SLIC” refers to Shanghai Liengheng Isocyanate Company (our unconsolidated manufacturing joint venture with BASF and three Chinese chemical companies). In this report, we may use, without definition, the common names of competitors or other industry participants. We may also use the common names or abbreviations for certain chemicals or products. Description of Business We are a global manufacturer of differentiated organic chemical products. We operate in four segments: Polyurethanes, Performance Products, Advanced Materials and Textile Effects. Our products comprise a broad range of chemicals and formulations, which we market globally to a diversified group of consumer and industrial customers. Our products are used in a wide range of applications, including those in the adhesives, aerospace, automotive, construction products, personal care and hygiene, durable and non‑durable consumer products, digital inks, electronics, medical, packaging, coatings and construction, power generation, refining, synthetic fiber, textile chemicals and dye industries. We are a leading global producer in many of our key product lines, including MDI, amines, surfactants, maleic anhydride, epoxy‑based polymer formulations, textile chemicals and dyes. Company Our Company, a Delaware corporation, was formed in 2004 to hold the Huntsman businesses, which were founded by Jon M. Huntsman. Mr. Huntsman founded the predecessor to our Company in 1970 as a small polystyrene plastics packaging company. Since then, we have grown through a series of significant acquisitions and now own a global portfolio of businesses. Jon M. Huntsman served as the Executive Chairman of our Company until December 31, 2017, at which time Peter Huntsman, our Chief Executive Officer, was appointed to the role of Chairman of the Board. Jon M. Huntsman served as Director and Chairman Emeritus until his passing on February 2, 2018. Currently, we operate all of our businesses through Huntsman International, our 100% owned subsidiary. Huntsman International is a Delaware limited liability company and was formed in 1999. Recent Developments Separation and Deconsolidation of Venator In August 2017, we separated the P&A Business and conducted an IPO of ordinary shares of Venator, formerly a wholly-owned subsidiary of Huntsman. Additionally, in December 2017, we conducted a secondary offering of Venator ordinary shares. All of such ordinary shares were sold by Huntsman, and Venator did not receive any proceeds from the offerings. Venator’s ordinary shares began trading on The New York Stock Exchange under the symbol “VNTR” on August 3, 2017. On January 3, 2018, the underwriters purchased an additional 1,948,955 Venator ordinary shares pursuant to their over-allotment option, which reduced Huntsman’s ownership interest in Venator to approximately 53%. Beginning in the third quarter of 2017, we reported the results of operations of Venator as discontinued operations. During the third quarter of 2018, we recognized a net after tax valuation allowance of $270 million to adjust the carrying amount of the assets and liabilities held for sale and the amount of accumulated comprehensive income recorded in equity related to Venator to the lower of cost or estimated fair value, less cost to sell. On December 3, 2018, we sold an aggregate of 4,334,389, or 4%, of Venator ordinary shares to Bank of America N.A. at a price to be determined based on the average of the daily volume weighted average price of Venator ordinary shares over an agreed period. Over this agreed period, we received aggregate proceeds of $19 million, $16 million of which was received in the first quarter of 2019. This transaction allowed us to deconsolidate Venator beginning in December 2018. Following this transaction, we retained approximately 49% ownership in Venator. In connection with the deconsolidation of Venator, we recorded a pretax loss of $427 million in discontinued operations to record our remaining ownership interest in Venator at fair value. We elected the fair value option to account for our equity method investment in Venator post deconsolidation. Accordingly, at December 31, 2018, we recorded a pretax loss of $57 million to record our equity method investment in Venator at fair value. This loss was recorded in “Fair value adjustments to Venator investment” on our consolidated statements of operations. For more information, see “Note 4. Discontinued Operations and Business Dispositions—Separation and Deconsolidation of Venator.” Unsecured Revolving Credit Facility On May 21, 2018, Huntsman International entered into the 2018 Revolving Credit Facility. Borrowings under the 2018 Revolving Credit Facility will bear interest at the rates specified in the credit agreement governing the 2018 Revolving Credit Facility, which will vary based on the type of loan and Huntsman International’s debt ratings. Unless earlier terminated, the 2018 Revolving Credit Facility will mature in May 2023. Huntsman International may increase the 2018 Revolving Credit Facility commitments up to an additional $500 million, subject to the satisfaction of certain conditions. See “Note 14. Debt—Direct and Subsidiary Debt—Credit Facility.” In connection with entering into the 2018 Revolving Credit Facility, Huntsman International terminated all commitments and repaid all obligations under the Prior Credit Facility. In addition, we recognized a loss of early extinguishment of debt of $3 million. Upon the termination of the Prior Credit Facility, all guarantees of the obligations under the Prior Credit Facility were terminated, and all liens granted under the Prior Credit Facility were released. Share Repurchase Program On February 7, 2018 and on May 3, 2018, our Board of Directors authorized us to repurchase up to an additional $950 million in shares of our common stock in addition to the $50 million remaining under our September 2015 share repurchase authorization. During the year ended December 31, 2018, we repurchased 10,405,457 shares of our common stock for approximately $276 million, excluding commissions, under the repurchase program. From January 1, 2019 through January 31, 2019, we repurchased an additional 537,018 shares of our common stock for approximately $11 million, excluding commissions. Demilec Acquisition On April 23, 2018, we acquired 100% of the outstanding equity interests of Demilec for approximately $353 million, including working capital adjustments, in an all-cash transaction which was funded from our Prior Credit Facility and our U.S. A/R Program. Demilec is a leading North American manufacturer and distributor of spray polyurethane foam formulations for residential and commercial applications. The acquired business is being integrated into our Polyurethanes segment. See “Note 3. Business Combination.” Huntsman Corporation and Huntsman International Financial Statements Except where otherwise indicated, these notes relate to the consolidated financial statements for both our Company and Huntsman International. The differences between our consolidated financial statements and Huntsman International’s consolidated financial statements relate primarily to the following: · purchase accounting recorded at our Company for the 2003 step‑acquisition of Huntsman International Holdings LLC, the former parent company of Huntsman International that was merged into Huntsman International in 2005; · the different capital structures; and · a note payable from Huntsman International to us. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Asset Retirement Obligations We accrue for asset retirement obligations, which consist primarily of landfill capping, closure and post‑closure costs, asbestos abatement costs, demolition and removal costs and leasehold remediation costs, in the period in which the obligations are incurred. Asset retirement obligations are accrued at estimated fair value. When the liability is initially recorded, we capitalize the cost by increasing the carrying amount of the related long‑lived asset. Over time, the liability is accreted to its estimated settlement value and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement of the liability, we will recognize a gain or loss for any difference between the settlement amount and the liability recorded. Asset retirement obligations were $11 million and $9 million at December 31, 2018 and 2017, respectively. Carrying Value of Long‑Lived Assets We review long‑lived assets and all amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. Recoverability is based upon current and anticipated undiscounted cash flows, and we recognize an impairment when such estimated cash flows are less than the carrying value of the asset. Measurement of the amount of impairment, if any, is based upon the difference between carrying value and fair value. Fair value is generally estimated by discounting estimated future cash flows using a discount rate commensurate with the risks involved or selling price of assets held for sale. See “Note 12. Restructuring, Impairment and Plant Closing Costs.” Cash and Cash Equivalents We consider cash in checking accounts and cash in short‑term highly liquid investments with remaining maturities of three months or less at the date of purchase, to be cash and cash equivalents. Cash flows from financing activities from discontinued operations are not presented separately in our consolidated statements of cash flows. Cost of Goods Sold We classify the costs of manufacturing and distributing our products as cost of goods sold. Manufacturing costs include variable costs, primarily raw materials and energy, and fixed expenses directly associated with production. Manufacturing costs also include, among other things, plant site operating costs and overhead (including depreciation), production planning and logistics costs, repair and maintenance costs, plant site purchasing costs, and engineering and technical support costs. Distribution, freight and warehousing costs are also included in cost of goods sold. Derivatives and Hedging Activities All derivatives, whether designated in hedging relationships or not, are recorded on our balance sheet at fair value. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and the hedged items are recognized in earnings. If the derivative is designated as a cash flow hedge, changes in the fair value of the derivative are recorded in accumulated other comprehensive loss, to the extent effective, and will be recognized in the income statement when the hedged item affects earnings. Changes in the fair value of the hedge in the net investment of certain international operations are recorded in other comprehensive income (loss), to the extent effective. The effectiveness of a cash flow hedging relationship is established at the inception of the hedge, and after inception we perform effectiveness assessments at least every three months. A derivative designated as a cash flow hedge is determined to be effective if the change in value of the hedge divided by the change in value of the hedged item is within a range of 80% to 125%. Hedge ineffectiveness in a cash flow hedge occurs only if the cumulative gain or loss on the derivative hedging instrument exceeds the cumulative change in the expected future cash flows on the hedged transaction. For a derivative that does not qualify or has not been designated as a hedge, changes in fair value are recognized in earnings. Environmental Expenditures Environmental related restoration and remediation costs are recorded as liabilities when site restoration and environmental remediation and clean‑up obligations are either known or considered probable and the related costs can be reasonably estimated. Other environmental expenditures that are principally maintenance or preventative in nature are recorded when expended and incurred and are expensed or capitalized as appropriate. See “Note 20. Environmental, Health and Safety Matters.” Equity Method Investments We account for our equity investments where we own a non-controlling interest, but exercise significant influence, under the equity method of accounting. Under the equity method of accounting, our original cost of the investment is adjusted for our share of equity in the earnings of the equity investee and reduced by dividends and distributions of capital received, unless the fair value option is elected, in which case the investment balance is marked to fair value each reporting period and the impact of changes in fair value of the equity investment are reported in earnings. We elected the fair value option to account for our equity method investment in Venator. For more information, see “Note 4. Discontinued Operations and Business Dispositions.” The change in the fair value related to our equity method investment in Venator is presented in “Fair value adjustments to Venator investment” on the consolidated statements of operations. Foreign Currency Translation The accounts of our operating subsidiaries outside of the U.S., unless they are operating in highly inflationary economic environments, consider the functional currency to be the currency of the economic environment in which they operate. Accordingly, assets and liabilities are translated at rates prevailing at the balance sheet date. Revenues, expenses, gains and losses are translated at a weighted average rate for the period. Cumulative translation adjustments are recorded to equity as a component of accumulated other comprehensive loss. If a subsidiary operates in an economic environment that is considered to be highly inflationary (100% cumulative inflation over a three-year period), the U.S. dollar is considered to be the functional currency and gains and losses from remeasurement to the U.S. dollar from the local currency are included in the statement of operations. Where a subsidiary’s operations are effectively run, managed, financed and contracted in U.S. dollars, such as certain finance subsidiaries outside of the U.S., the U.S. dollar is considered to be the functional currency. Foreign currency transaction gains and losses are recorded in other operating (income) expense, net in our consolidated statements of operations and were gains of $3 million, $5 million and $2 million for the years ended December 31, 2018, 2017 and 2016, respectively. Income Taxes We use the asset and liability method of accounting for income taxes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial and tax reporting purposes. We evaluate deferred tax assets to determine whether it is more likely than not that they will be realized. Valuation allowances are reviewed on a tax jurisdiction basis to analyze whether there is sufficient positive or negative evidence to support a change in judgment about the realizability of the related deferred tax assets for each jurisdiction. These conclusions require significant judgment. In evaluating the objective evidence that historical results provide, we consider the cyclicality of businesses and cumulative income or losses during the applicable period. Cumulative losses incurred over the period limits our ability to consider other subjective evidence such as our projections for the future. Changes in expected future income in applicable jurisdictions could affect the realization of deferred tax assets in those jurisdictions. On December 22, 2017, the U.S. Tax Reform Act was signed into law. The U.S. Tax Reform Act significantly revised the U.S. corporate income tax regime by, among other things, lowering the U.S. corporate tax rate from 35% to 21%, effective January 1, 2018, repealing the deduction for domestic production activities and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. As a result of the U.S. Tax Reform Act, the Company recorded net tax benefits of $135 million (a provisional tax benefit of $137 million in 2017 offset by a final tax expense of $2 million in 2018) due to a remeasurement of deferred U.S. tax assets and liabilities and net tax expense of $115 million (a provisional tax expense of $85 million in 2017, a $29 million final federal tax expense in 2018 and a $1 million state tax expense in 2018) due to the transition tax on deemed repatriation of deferred foreign income. Accounting for uncertainty in income taxes prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The application of income tax law is inherently complex. We are required to determine if an income tax position meets the criteria of more‑likely‑than‑not to be realized based on the merits of the position under tax law, in order to recognize an income tax benefit. This requires us to make significant judgments regarding the merits of income tax positions and the application of income tax law. Additionally, if a tax position meets the recognition criteria of more‑likely‑than‑not we are required to make judgments and apply assumptions to measure the amount of the tax benefits to recognize. These judgments are based on the probability of the amount of tax benefits that would be realized if the tax position was challenged by the taxing authorities. Interpretations and guidance surrounding income tax laws and regulations change over time. As a consequence, changes in assumptions and judgments can materially affect amounts recognized in our consolidated financial statements. We have no need for, or change in, any unrecognized tax positions due to the U.S. Tax Reform Act. For further information concerning taxes, see “Note 18. Income Taxes.” Intangible Assets and Goodwill Intangible assets are stated at cost (fair value at the time of acquisition) and are amortized using the straight‑line method over the estimated useful lives or the life of the related agreement as follows: Patents and technology 5 ‑ 30 years Trademarks 9 ‑ 30 years Licenses and other agreements 5 ‑ 15 years Other intangibles 5 ‑ 15 years Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill is not subject to any method of amortization, but is tested for impairment annually (at the beginning of the third quarter) and when events and circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. When the fair value is less than the carrying value of the related reporting unit, we are required to reduce the amount of goodwill through a charge to earnings. Fair value is estimated using the market approach, as well as the income approach based on discounted cash flow projections. Goodwill has been assigned to reporting units for purposes of impairment testing. The following table summarizes the changes in the carrying amount of goodwill for year ended December 31, 2018 (dollars in millions): Performance Advanced Polyurethanes Products Materials Total Balance as of January 1, 2018 $ 40 $ 17 $ 83 $ 140 Goodwill acquired during year(1) 142 — — 142 Foreign currency effect on balance (9) (1) 3 (7) Balance as of December 31, 2018 $ 173 $ 16 $ 86 $ 275 (1) This reflects net amounts, including adjustments related to preliminary valuations of acquisition assets and liabilities. Inventories Inventories are stated at the lower of cost or market, with cost determined using LIFO, first‑in first‑out, and average costs methods for different components of inventory. Legal Costs We expense legal costs, including those legal costs incurred in connection with a loss contingency, as incurred. Net Income Per Share Attributable to Huntsman Corporation Basic income per share excludes dilution and is computed by dividing net income attributable to Huntsman Corporation common stockholders by the weighted average number of shares outstanding during the period. Diluted income per share reflects all potential dilutive common shares outstanding during the period and is computed by dividing net income available to Huntsman Corporation common stockholders by the weighted average number of shares outstanding during the period increased by the number of additional shares that would have been outstanding as dilutive securities. Basic and diluted income per share is determined using the following information (in millions): Year ended December 31, 2018 2017 2016 Numerator: Basic and diluted income from continuing operations: Income from continuing operations attributable to Huntsman Corporation $ 764 $ 478 $ 334 Basic and diluted net income: Net income attributable to Huntsman Corporation $ 337 $ 636 $ 326 Denominator: Weighted average shares outstanding 238.1 238.4 236.3 Dilutive shares: Stock-based awards 3.5 5.5 3.3 Total weighted average shares outstanding, including dilutive shares 241.6 243.9 239.6 Additional stock‑based awards of 0.8 million, 0.8 million and 5.7 million weighted average equivalent shares of stock were outstanding during the years ended December 31, 2018, 2017 and 2016, respectively. However, these stock‑based awards were not included in the computation of diluted earnings per share for the respective periods mentioned because the effect would be anti‑dilutive. Other Noncurrent Assets Periodic maintenance and repairs applicable to major units of manufacturing facilities (a “turnaround”) are accounted for on the deferral basis by capitalizing the costs of the turnaround and amortizing the costs over the estimated period until the next turnaround. Principles of Consolidation Our consolidated financial statements include the accounts of our wholly owned and majority owned subsidiaries and any variable interest entities for which we are the primary beneficiary. All intercompany accounts and transactions have been eliminated. Property, Plant and Equipment Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight‑line method over the estimated useful lives or lease term as follows: Buildings and equipment 5 ‑ 50 years Plant and equipment 3 ‑ 30 years Furniture, fixtures and leasehold improvements 5 ‑ 20 years Interest expense capitalized as part of plant and equipment was $4 million, $9 million and $12 million for the years ended December 31, 2018, 2017 and 2016, respectively. Normal maintenance and repairs of plant and equipment are charged to expense as incurred. Renewals, betterments and major repairs that materially extend the useful life of the assets are capitalized, and the assets replaced, if any, are retired. Reclassifications Certain amounts in the consolidated financial statements for prior periods have been reclassified to conform with the current presentation. These reclassifications include the presentation of the other components of net periodic pension cost and net periodic postretirement cost, other than service costs, within other nonoperating income in accordance with Accounting Standards Update (“ASU”) No. 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . We previously presented these amounts within cost of goods sold and selling, general and administrative expenses. See “—Accounting Pronouncements Adopted During 2018.” Pursuant to ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , we began including the change in restricted cash as part of the change in cash and equivalents when reconciling the beginning-of-period and end-of-period total amounts on the statements of cash flows beginning in 2018. We previously presented changes in restricted cash as an investing activity in the statements of cash flows. See “ — Accounting Pronouncements Adopted During 2018.” Revenue Recognition We generate substantially all of our revenue through product sales in which revenue is recognized at a point in time. We recognize revenue when control of the promised goods is transferred to our customers. Control of goods usually passes to the customer at the time shipment is made. Revenue is measured as the amount that reflects the consideration that we expect to be entitled to in exchange for those goods. See “Note 23. Revenue Recognition.” Securitization of Accounts Receivable Under our A/R Programs, we grant an undivided interest in certain of our trade receivables to the special purpose entities (“SPE”) in the U.S. and EU. This undivided interest serves as security for the issuance of debt. The A/R Programs provide for financing in both U.S. dollars and euros. The amounts outstanding under our A/R Programs are accounted for as secured borrowings. See “Note 14. Debt—Direct and Subsidiary Debt—A/R Programs.” Stock‑Based Compensation We measure the cost of employee services received in exchange for an award of equity instruments based on the grant‑date fair value of the award. That cost, net of estimated forfeitures, will be recognized over the period during which the employee is required to provide services in exchange for the award. See “Note 22. Stock‑Based Compensation Plan.” Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Accounting Pronouncements Adopted During 2018 In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014‑09, Revenue from Contracts with Customers (Topic 606) , outlining a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers and supersedes most current revenue recognition guidance. In March 2016, the FASB issued ASU No. 2016‑08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , clarifying the implementation guidance on principal versus agent considerations, in April 2016, the FASB issued ASU No. 2016‑10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , clarifying the implementation guidance on identifying performance obligations in a contract and determining whether an entity’s promise to grant a license provides a customer with either a right to use the entity’s intellectual property (which is satisfied at a point in time) or a right to access the entity’s intellectual property (which is satisfied over time), in May 2016, the FASB issued ASU No. 2016‑12, Revenue from Customers (Topic 606): Narrow‑Scope Improvements and Practical Expedients , providing clarifications and practical expedients for certain narrow aspects in Topic 606, and in December 2016, the FASB issued ASU 2016‑20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers . The amendments in these ASUs are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The amendments in ASU No. 2014‑09, ASU No. 2016‑08, ASU No. 2016‑10, ASU No. 2016‑12 and ASU No. 2016‑20 should be applied retrospectively. On January 1, 2018, we adopted the amendments in ASU No. 2014‑09, ASU No. 2016‑08, ASU No. 2016‑10, ASU No. 2016‑12 and ASU No. 2016‑20 to all current revenue contracts using the modified retrospective approach, and the initial adoption of these amendments did not have an impact on our consolidated financial statements. As a result of the adoption of these amendments, we revised our accounting policy for revenue recognition as detailed in “Note 23. Revenue Recognition.” In January 2016, the FASB issued ASU No. 2016‑01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities . The amendments in this ASU require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The amendments allow equity investments that do not have readily determinable fair values to be remeasured at fair value either upon the occurrence of an observable price change or upon identification of an impairment. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. An entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. On January 1, 2018, we adopted the amendments in ASU No. 2016‑01 and upon transition recorded a cumulative-effect adjustment of approximately $10 million, net of tax, relating to prior years’ changes in fair value of equity investments from other comprehensive income to retained earnings. Beginning in the first quarter of 2018, we also started recognizing the current period change in fair value of equity investments in net income. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . The amendments in this ASU clarify and include specific guidance to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The amendments in this ASU should be applied using a retrospective transition method to each period presented. We adopted the amendments in this ASU effective January 1, 2018, and the initial adoption of the amendments in this ASU did not have a significant impact on our consolidated financial statements. In November 2016, the FASB issued ASU No. 2016‑18, Statement of Cash Flows (Topic 230): Restricted Cash . The amendments in this ASU require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning‑of‑period and end‑of‑period total amounts shown on the statement of cash flows. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, and interim period within those fiscal years. The amendments in this ASU were applied using a retrospective transition method to each period presented. We adopted the amendments in this ASU effective January 1, 2018, and the initial adoption of the amendments in this ASU did not have a significant impact on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017‑01, Business Combinations (Topic 805): Clarifying the Definition of a Business . The amendments in this ASU clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The amendments in this ASU should be applied prospectively on or after the effective date. No disclosures are required at transition. We adopted the amendments in this ASU effective January 1, 2018, and the initial adoption of this ASU did not have a significant impact on our consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . The amendments in this ASU require that an employer report the service cost component of net periodic pension cost and net periodic postretirement benefit cost in the same line items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside of income from operations. The amendments in this ASU also allow only the service cost component to be eligible for capitalization when applicable (for example, as a cost of internally manufactured inventory or a self-constructed asset). The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The amendments in this ASU should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit cost in assets. We adopted the amendments in this ASU effective January 1, 2018, which impacted the presentation of our consolidated financial statements. Our previous presentation of service cost components was consistent with the amendments in this ASU. However, we now present the other components within other income, net, whereas we previously presented these within cost of goods sold and selling, general and administrative expenses. In August 2018, the FASB issued ASU No. 2018‑13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement . The amendments in this ASU modify certain disclosure requirements on fair value measurements in Topic 820 to improve the effectiveness of such disclosures. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted upon issuance of this ASU. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. We early adopted the removed and modified disclosures in this ASU for the year ended December 31, 2018, and they did not have a significant impact on our consolidated financial statements. We elected to delay the adoption of the additional disclosures in this ASU until their effective date, but do not expect the adoption of the additional disclosures in this ASU to have a significant impact on our consolidated financial statements. Accounting Pronouncements Pending Adoption in Future Periods In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The amendments in this ASU will increase transparency and comparability among entities by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in this ASU will require lessees to recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. In January 2018, the FASB issued ASU No. 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842 , providing an optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under the current leases guidance in Topic 840, and in July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements , providing an optional transition method allowing entities to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The amendments in these ASUs are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early application of the amendments in these ASUs is permitted for all entities. Reporting entities can elect to recognize and measure leases under these amendments at the beginning of the earliest period presented using a modified retrospective approach or otherwise elect the transition method provided under ASU No. 2018-11. We are currently evaluating the impact of the adoption of the amendments in these ASUs on our consolidated financial statements. Based on our preliminary assessment the estimated right-of-use asset and lease liability that we will recognize on our balance sheet upon adoption will be approximately $400 million to $450 million. This estimate could change pending the finalization of the incremental borrowing rate for certain leases. We are evaluating key policy elections and considerations under the amendments in these ASUs and are developing internal policies to address these amendments. In August 2017, the FASB issued ASU No. 2017‑12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The amendments in this ASU better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships as well as the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements to increase the understandability of the results of an entity’s intended hedging strategies. The amendments in this ASU also include certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted in any interim period after the issuance of this ASU. Transition requirements and elections should be applied to hedging relationships existing on the date of adoption. For cash flow and net investment hedges, an entity should apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness, and the amended presentation and disclosure guidance is required only prospectively. We do not expect the adoption of the amendments in this ASU to have a significant impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018‑14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans . The amendments in this ASU modify certain disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing disclosures that no longer are considered cost beneficial, clarifying the specific requirements of disclosures and adding disclosure requirements identified as relevant. The amendments in this ASU are effective for fiscal years ending after December 15, 2020 and should be applied on a retrospective basis to all periods presented. Early adoption is permitted. We do not expect the adoption of the amendments in this ASU to have a significant impact on our consolidated |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Dec. 31, 2018 | |
BUSINESS COMBINATION | |
BUSINESS COMBINATION | 3 . BUSINESS COMBINATION On April 23, 2018, we acquired 100% of the outstanding equity interests of Demilec for approximately $353 million, including working capital adjustments, in an all-cash transaction, which was funded from our Prior Credit Facility and our U.S. A/R Program. Demilec is a leading North American manufacturer and distributor of spray polyurethane foam formulations for residential and commercial applications. The acquired business was integrated into our Polyurethanes segment. Transaction costs charged to expense related to this acquisition were approximately $5 million in 2018 and were recorded in other operating expense (income), net in our consolidated statements of operations. The Demilec Acquisition was aligned with our stated strategy to grow our downstream polyurethanes business and leverage our global platform to expand Demilec’s portfolio of spray polyurethane foam formulations into international markets. We have accounted for the Demilec Acquisition using the acquisition method. As such, we analyzed the fair value of tangible and intangible assets acquired and liabilities assumed. The preliminary allocation of acquisition cost to the assets acquired and liabilities assumed is summarized as follows (dollars in millions): Fair value of assets acquired and liabilities assumed: Cash paid for Demilec Acquisition in Q2 2018 $ 357 Purchase price adjustment received in Q3 2018 (4) Net acquisition cost $ 353 Cash $ 1 Accounts receivable 31 Inventories 23 Prepaid expenses and other current assets 1 Property, plant and equipment, net 21 Intangible assets 177 Goodwill 142 Accounts payable (16) Accrued liabilities (3) Deferred income taxes (22) Other noncurrent liabilities (2) Total fair value of net assets acquired $ 353 The acquisition cost allocation is preliminary pending final determination of the fair value of assets acquired and liabilities assumed, primarily related to the final valuation of deferred taxes. As a result of a preliminary valuation of the assets and liabilities, reallocations were made in certain property, plant and equipment, intangible asset, goodwill and deferred tax balances. Intangible assets acquired included in this preliminary allocation consist primarily of trademarks, trade secrets and customer relationships, all of which are being amortized over 15 years. For purposes of this preliminary allocation of fair value, we have assigned any excess of the acquisition cost of historical carrying values to goodwill. During the third quarter of 2018, we received $4 million related to the settlement of certain purchase price adjustments. These purchase price adjustments were allocated to goodwill in the preliminary acquisition cost allocation. The estimated goodwill recognized is attributable primarily to projected future profitable growth, penetration into downstream markets, and synergies. It is possible that material changes to this preliminary purchase price allocation could occur. The acquired business had revenues and net income of $142 million and $5 million, respectively, for the period from the date of acquisition to December 31, 2018. If this acquisition were to have occurred on January 1, 2017, the following estimated pro forma revenues, net income, net income attributable to Huntsman Corporation and Huntsman International and income per share for Huntsman Corporation would have been reported (dollars in millions): Pro Forma (Unaudited) Year ended December 31, 2018 2017 Revenues $ 9,437 $ 8,523 Net income 639 728 Net income attributable to Huntsman Corporation 326 623 Income per share: Basic 1.37 2.61 Diluted 1.35 2.55 Pro Forma (Unaudited) Year ended December 31, 2018 2017 Revenues $ 9,437 $ 8,523 Net income 625 721 Net income attributable to Huntsman International 312 616 |
DISCONTINUED OPERATIONS AND BUS
DISCONTINUED OPERATIONS AND BUSINESS DISPOSITIONS | 12 Months Ended |
Dec. 31, 2018 | |
DISCONTINUED OPERATIONS AND BUSINESS DISPOSITIONS | |
DISCONTINUED OPERATIONS AND BUSINESS DISPOSITIONS | 4. Separation and Deconsolidation of Venator In August 2017, we separated the P&A Business and conducted an IPO of ordinary shares of Venator, formerly a wholly-owned subsidiary of Huntsman. Additionally, in December 2017, we conducted a secondary offering of Venator ordinary shares . All of such ordinary shares were sold by Huntsman, and Venator did not receive any proceeds from the offerings. On January 3, 2018, the underwriters purchased an additional 1,948,955 Venator ordinary shares pursuant to their over-allotment option, which reduced Huntsman’s ownership interest in Venator to approximately 53%. Beginning in the third quarter of 2017, we reported the results of operations of Venator as discontinued operations. During the third quarter of 2018, we recognized a net after tax valuation allowance of $270 million to adjust the carrying amount of the assets and liabilities held for sale and the amount of accumulated comprehensive income recorded in equity related to Venator to the lower of cost or estimated fair value, less cost to sell. On December 3, 2018, we sold an aggregate of 4,334,389, or 4%, of Venator ordinary shares to Bank of America N.A. at a price to be determined based on the average of the daily volume weighted average price of Venator ordinary shares over an agreed period. Over this agreed period, we received aggregate proceeds of $19 million, $16 million of which was received in the first quarter of 2019. This transaction allowed us to deconsolidate Venator beginning in December 2018. Following this transaction, we retained approximately 49% ownership in Venator In August 2017, we entered into a separation agreement, a transition services agreement (“TSA”) and a registration rights agreement with Venator to effect the Separation and provide a framework for a short term set of transition services as well as a tax matters agreement and an employee matters agreement. Pursuant to the TSA, we will, for a limited time following the Separation, provide Venator with certain services and functions that the parties have historically shared, including administrative, payroll, human resources, data processing, environmental, health and safety, financial audit support, financial transaction support, marketing support, information technology systems and various other corporate and support services. We may also provide Venator with additional services that Venator and Huntsman may identify from time to time in the future. In general, the services began following the Separation and cover a period not expected to exceed 24 months; however, Venator may terminate individual services provided by us under the TSA early, as it becomes able to operate its business without such services. The following table summarizes the major classes of assets and liabilities constituting assets and liabilities held for sale as of December 31, 2017: Carrying amounts of major classes of assets held for sale: Accounts receivable $ 380 Inventories 454 Other current assets 318 Property, plant and equipment, net 1,424 Deferred income taxes 158 Other noncurrent assets 146 Total assets held for sale $ 2,880 Carrying amounts of major classes of liabilities held for sale: Accounts payable $ 385 Accrued liabilities 236 Other current liabilities 25 Long-term debt 746 Other noncurrent liabilities 300 Total liabilities held for sale $ 1,692 The following table summarizes major classes of line items constituting pretax and after-tax income of discontinued operations. Huntsman Corporation Year ended December 31, 2018(1) 2017 2016 Major classes of line items constituting pretax income of discontinued operations: Trade sales, services and fees, net $ 2,148 $ 2,234 $ 2,168 Cost of goods sold 1,333 1,840 2,012 Other expense items, net that are not major 279 169 188 Income (loss) from discontinued operations before income taxes 536 225 (32) Income tax (expense) benefit (34) (67) 24 Loss on disposal (427) — — Valuation allowance (270) — — (Loss) income from discontinued operations, net of tax (195) 158 (8) Net income attributable to noncontrolling interests (6) (10) (10) Net (loss) income attributable to discontinued operations $ (201) $ 148 $ (18) Huntsman International Year ended December 31, 2018(1) 2017 2016 Major classes of line items constituting pretax income of discontinued operations: Trade sales, services and fees, net $ 2,148 $ 2,234 $ 2,168 Cost of goods sold 1,333 1,843 2,017 Other expense items, net that are not major 279 169 188 Income (loss) from discontinued operations before income taxes 536 222 (37) Income tax (expense) benefit (34) (67) 24 Loss on disposal (427) — — Valuation allowance (270) — — (Loss) income from discontinued operations, net of tax (195) 155 (13) Net income attributable to noncontrolling interests (6) (10) (10) Net (loss) income attributable to discontinued operations $ (201) $ 145 $ (23) (1) We began accounting for our investment in Venator as an equity method investment on December 3, 2018. Therefore, the summarized financial data only includes information for Venator applicable to the period from January 1, 2018 through December 2, 2018. Sale of European Surfactants Manufacturing Facilities On December 30, 2016, our Performance Products segment completed the sale of its European surfactants business to Innospec Inc. for $199 million in cash plus our retention of trade receivables and payables for an enterprise value of $225 million. Under the terms of the transaction, Innospec acquired our manufacturing facilities located in Saint-Mihiel, France; Castiglione delle Stiviere, Italy; and Barcelona, Spain. We remain committed to our global surfactants business, including in the U.S. and Australia, where our differentiated surfactants businesses are backward integrated into essential feedstocks. Upon closing, we entered into supply and long-term tolling arrangements with Innospec in order to continue marketing certain core products strategic to our global agrochemicals, lubes and certain other businesses. In connection with this sale, we recognized a pre-tax gain in the fourth quarter of 2016 of $98 million which was reflected in other operating income, net on the consolidated statements of operations. This business is not presented as discontinued operations as it was not considered a strategic shift in our operations. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2018 | |
INVENTORIES | |
INVENTORIES | 5. INVENTORIES Inventories consisted of the following (dollars in millions): December 31, December 31, 2018 2017 Raw materials and supplies $ 215 $ 189 Work in progress 51 48 Finished goods 927 897 Total 1,193 1,134 LIFO reserves (59) (61) Net inventories $ 1,134 $ 1,073 For December 31, 2018 and 2017, approximately 13% and 12% of inventories were recorded using the LIFO cost method, respectively. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | 6. PROPERTY, PLANT AND EQUIPMENT The cost and accumulated depreciation of property, plant and equipment were as follows (dollars in millions): Huntsman Corporation December 31, 2018 2017 Land $ 142 $ 150 Buildings 660 644 Plant and equipment 6,100 5,929 Construction in progress 307 360 Total 7,209 7,083 Less accumulated depreciation (4,145) (3,985) Net $ 3,064 $ 3,098 Depreciation expense for 2018, 2017 and 2016 was $310 million, $298 million and $289 million, respectively. Huntsman International December 31, 2018 2017 Land $ 142 $ 150 Buildings 660 644 Plant and equipment 6,154 5,982 Construction in progress 307 360 Total 7,263 7,136 Less accumulated depreciation (4,199) (4,041) Net $ 3,064 $ 3,095 Depreciation expense for 2018, 2017 and 2016 was $307 million, $289 million and $277 million, respectively. |
INVESTMENT IN UNCONSOLIDATED AF
INVESTMENT IN UNCONSOLIDATED AFFILIATES | 12 Months Ended |
Dec. 31, 2018 | |
INVESTMENT IN UNCONSOLIDATED AFFILIATES | |
INVESTMENT IN UNCONSOLIDATED AFFILIATES | 7. INVESTMENT IN UNCONSOLIDATED AFFILIATES Investments in companies in which we exercise significant influence, but do not control, are accounted for using the equity method. Investments in companies in which we do not exercise significant influence are accounted for using the cost method. Our ownership percentage and investment in unconsolidated affiliates were as follows (dollars in millions): December 31, 2018 2017 Equity Method: Venator Materials PLC (49%)(1) $ 219 $ — BASF Huntsman Shanghai Isocyanate Investment BV (50%)(2) 120 116 Nanjing Jinling Huntsman New Material Co., Ltd. (49%) 163 124 Jurong Ningwu New Material Development Co., Ltd. (30%) 24 21 Total equity method investments 526 261 Cost Method: International Diol Company (4%) — 5 Total investments $ 526 $ 266 (1) We account for our remaining investment in Venator as an equity method investment using the fair value option. For more information see “Note 4. Discontinued Operations and Business Dispositions—Separation and Deconsolidation of Venator.” (2) We own 50% of BASF Huntsman Shanghai Isocyanate Investment BV. BASF Huntsman Shanghai Isocyanate Investment BV owns a 70% interest in SLIC, thus giving us an indirect 35% interest in SLIC. Summarized Financial Information of Unconsolidated Affiliates Summarized financial information of our unconsolidated affiliates as of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016 is as follows (dollars in millions): December 31, 2018 2017 Current assets $ 1,548 $ 391 Non-current assets 2,444 1,138 Current liabilities 781 358 Non-current liabilities 1,683 567 Noncontrolling interests 8 — December 31, 2018(1) 2017 2016 Revenues $ 2,181 $ 1,109 $ 645 Gross profit 221 112 49 Income from continuing operations 124 34 16 Net income 124 34 16 (1) |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2018 | |
VARIABLE INTEREST ENTITIES | |
VARIABLE INTEREST ENTITIES | 8. VARIABLE INTEREST ENTITIES We evaluate our investments and transactions to identify variable interest entities for which we are the primary beneficiary. We hold a variable interest in the following joint ventures for which we are the primary beneficiary: · Rubicon LLC is our 50%-owned joint venture with Lanxess that manufactures products for our Polyurethanes and Performance Products segments. The structure of the joint venture is such that the total equity investment at risk is not sufficient to permit the joint venture to finance its activities without additional financial support. By virtue of the operating agreement with this joint venture, we purchase a majority of the output, absorb a majority of the operating costs and provide a majority of the additional funding. · AAC is our 50%-owned joint venture with Zamil group that manufactures products for our Performance Products segment. As required in the operating agreement governing this joint venture, we purchase all of AAC’s production and sell it to our customers. Substantially all of the joint venture’s activities are conducted on our behalf. · Sasol‑Huntsman is our 50%‑owned joint venture with Sasol that owns and operates a maleic anhydride facility in Moers, Germany. This joint venture manufactures products for our Performance Products segment. The joint venture uses our technology and expertise, and we bear a disproportionate amount of risk of loss due to a related‑party loan to Sasol‑Huntsman for which we bear the default risk. Creditors of these entities have no recourse to our general credit. See “Note 14. Debt—Direct and Subsidiary Debt.” As the primary beneficiary of these variable interest entities at December 31, 2018, the joint ventures’ assets, liabilities and results of operations are included in our consolidated financial statements. The following table summarizes the carrying amount of our variable interest entities’ assets and liabilities included in our consolidated balance sheets as of December 31, 2018 and 2017 (dollars in millions): December 31, 2018 2017 Current assets $ 92 $ 114 Property, plant and equipment, net 265 283 Other noncurrent assets 136 116 Deferred income taxes 32 33 Intangible assets 10 10 Goodwill 14 14 Total assets $ 549 $ 570 Current liabilities $ 178 $ 163 Long-term debt 61 86 Deferred income taxes 11 12 Other noncurrent liabilities 97 98 Total liabilities $ 347 $ 359 The revenues, income from continuing operations before income taxes and net cash provided by operating activities for our variable interest entities are as follows (dollars in millions): Year ended December 31, 2018 2017 2016 Revenues $ 154 $ 132 $ 97 Income from continuing operations before income taxes 40 25 15 Net cash provided by operating activities 65 51 50 Prior to the separation of Venator, we held variable interests in two additional joint ventures for which we were the primary beneficiary: Pacific Iron Products Sdn Bhd and Viance, LLC. In connection with the separation of Venator, these variable interests were held by Venator at December 31, 2017, and as such, the assets and liabilities of these variable interest entities were included as part of assets and liabilities held for sale. See “Note 4. Discontinued Operations and Business Dispositions—Separation and Deconsolidation of Venator.” |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
INTANGIBLE ASSETS | |
INTANGIBLE ASSETS | 9. INTANGIBLE ASSETS The gross carrying amount and accumulated amortization of intangible assets were as follows (dollars in millions): Huntsman Corporation December 31, 2018 December 31, 2017 Carrying Accumulated Carrying Accumulated Amount Amortization Net Amount Amortization Net Patents, trademarks and technology $ 424 $ 333 $ 91 $ 350 $ 332 $ 18 Licenses and other agreements 135 31 104 40 25 15 Non-compete agreements 3 2 1 4 2 2 Other intangibles 83 60 23 82 61 21 Total $ 645 $ 426 $ 219 $ 476 $ 420 $ 56 Amortization expense was $11 million, $6 million and $12 million for the years ended December 31, 2018, 2017 and 2016, respectively. Huntsman International December 31, 2018 December 31, 2017 Carrying Accumulated Carrying Accumulated Amount Amortization Net Amount Amortization Net Patents, trademarks and technology $ 424 $ 333 $ 91 $ 350 $ 332 $ 18 Licenses and other agreements 135 31 104 40 25 15 Non-compete agreements 3 2 1 4 2 2 Other intangibles 91 68 23 90 69 21 Total $ 653 $ 434 $ 219 $ 484 $ 428 $ 56 Amortization expense was $11 million, $7 million and $12 million for the years ended December 31, 2018, 2017 and 2016, respectively. Our and Huntsman International’s estimated future amortization expense for intangible assets over the next five years is as follows (dollars in millions): Year ending December 31, 2019 $ 19 2020 17 2021 16 2022 16 2023 16 |
OTHER NONCURRENT ASSETS
OTHER NONCURRENT ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
OTHER NONCURRENT ASSETS | |
OTHER NONCURRENT ASSETS | 10. OTHER NONCURRENT ASSETS Other noncurrent assets consisted of the following (dollars in millions): December 31, 2018 2017 Capitalized turnaround costs, net $ 280 $ 233 Catalyst assets, net 56 46 Other 217 218 Total $ 553 $ 497 Amortization expense of catalyst assets for the years ended December 31, 2018, 2017 and 2016 was $22 million, $15 million and $17 million, respectively. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
ACCRUED LIABILITIES | |
ACCRUED LIABILITIES | 11. ACCRUED LIABILITIES Accrued liabilities consisted of the following (dollars in millions): Huntsman Corporation December 31, 2018 2017 Payroll and related accruals $ 150 $ 172 Income taxes 86 62 Volume and rebate accruals 66 58 Taxes other than income taxes 60 77 Restructuring and plant closing reserves 23 15 Interest 19 20 Pension liabilities 11 15 Other postretirement benefits 6 7 Environmental accruals 2 6 Other miscellaneous accruals 131 137 Total $ 554 $ 569 Huntsman International December 31, 2018 2017 Payroll and related accruals $ 150 $ 172 Income taxes 86 62 Volume and rebate accruals 66 58 Taxes other than income taxes 60 77 Restructuring and plant closing reserves 23 15 Interest 19 20 Pension liabilities 11 15 Other postretirement benefits 6 7 Environmental accruals 2 6 Other miscellaneous accruals 128 134 Total $ 551 $ 566 |
RESTRUCTURING, IMPAIRMENT AND P
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS | 12 Months Ended |
Dec. 31, 2018 | |
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS | |
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS | 12. RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS As of December 31, 2018, 2017 and 2016, accrued restructuring costs of continuing operations by type of cost and initiative consisted of the following (dollars in millions): Non-cancelable Other Workforce Demolition and lease and contract restructuring reductions(1) decommissioning termination costs costs Total(2) Accrued liabilities as of January 1, 2016 $ 19 $ 16 $ 37 $ 5 $ 77 2016 charges for 2015 and prior initiatives 1 24 9 13 47 2016 charges for 2016 initiatives 1 — — 5 6 Reversal of reserves no longer required (2) — — — (2) Distribution of prefunded restructuring costs (5) (5) — (1) (11) 2016 payments for 2015 and prior initiatives (8) (15) (4) (13) (40) 2016 payments for 2016 initiatives (1) — — (4) (5) Foreign currency effect on liability balance (1) (1) (2) — (4) Accrued liabilities as of December 31, 2016 4 19 40 5 68 2017 (credits) charges for 2016 and prior initiatives (1) 3 2 2 6 2017 charges for 2017 initiatives 10 — — 2 12 2017 payments for 2016 and prior initiatives (1) (21) (2) (2) (26) 2017 payments for 2017 initiatives (8) — — (2) (10) Foreign currency effect on liability balance 1 1 1 — 3 Accrued liabilities as of December 31, 2017 5 2 41 5 53 2018 charges for 2017 and prior initiatives — — 2 — 2 2018 charges for 2018 initiatives 5 — — 10 15 2018 payments for 2017 and prior initiatives (2) (1) (2) — (5) 2018 payments for 2018 initiatives (1) — — (5) (6) Reversal of reserves no longer required (1) — (29) — (30) Accrued liabilities as of December 31, 2018 $ 6 $ 1 $ 12 $ 10 $ 29 (1) The total workforce reduction reserves of $6 million relate to the termination of 50 positions, of which 8 positions had not been terminated as of December 31, 2018. Accrued liabilities remaining at December 31, 2018 and 2017 by year of initiatives were as follows (dollars in millions): December 31, December 31, 2018 2017 2016 and prior initiatives $ 19 $ 51 2017 initiatives 1 2 2018 initiatives 9 — Total $ 29 $ 53 Details with respect to our reserves for restructuring, impairment and plant closing costs are provided below by segment and initiative (dollars in millions): Performance Advanced Textile Corporate Polyurethanes Products Materials Effects and other Total Accrued liabilities as of January 1, 2016 $ 5 $ 9 $ 4 $ 55 $ 4 $ 77 2016 charges for 2015 and prior initiatives — 16 — 28 3 47 2016 charges for 2016 initiatives 4 — — 1 1 6 Reversal of reserves no longer required (1) — — — (1) (2) Distribution of prefunded restructuring costs — (6) — (5) — (11) 2016 payments for 2015 and prior initiatives (3) (19) — (14) (4) (40) 2016 payments for 2016 initiatives (3) — — (1) (1) (5) Foreign currency effect on liability balance — — (1) (3) — (4) Accrued liabilities as of December 31, 2016 2 — 3 61 2 68 2017 charges for 2016 and prior initiatives — — — 6 — 6 2017 charges for 2017 initiatives — 1 — 7 4 12 2017 payments for 2016 and prior initiatives (1) — — (25) — (26) 2017 payments for 2017 initiatives — — — (5) (5) (10) Foreign currency effect on liability balance — — — 3 — 3 Accrued liabilities as of December 31, 2017 1 1 3 47 1 53 2018 charges (credits) for 2017 and prior initiatives — 1 — (4) 5 2 2018 charges for 2018 initiatives — 2 3 — 10 15 2018 payments for 2017 and prior initiatives (1) (1) — — (3) (5) 2018 payments for 2018 initiatives — (1) — — (5) (6) Reversal of reserves no longer required — — — (29) (1) (30) Accrued liabilities as of December 31, 2018 $ — $ 2 $ 6 $ 14 $ 7 $ 29 Current portion of restructuring reserves $ — $ 2 $ 4 $ 10 $ 7 $ 23 Long-term portion of restructuring reserves — — 2 4 — 6 Details with respect to cash and noncash restructuring charges for the years ended December 31, 2018, 2017 and 2016 by initiative are provided below (dollars in millions): Cash charges: 2018 charges for 2017 and prior initiatives $ 2 2018 charges for 2018 initiatives 15 Noncash charges: Reversal of reserves no longer required (30) Other noncash charges 8 Total 2018 restructuring, impairment and plant closing credits $ (5) Cash charges: 2017 charges for 2016 and prior initiatives $ 6 2017 charges for 2017 initiatives 12 Pension-related charges 1 Noncash charges: Accelerated depreciation 2 Other noncash credits (1) Total 2017 restructuring, impairment and plant closing costs $ 20 Cash charges: 2016 charges for 2015 and prior initiatives $ 47 2016 charges for 2016 initiatives 6 Noncash charges: Reversal of reserves no longer required (2) Gain on sale of land (4) Total 2016 restructuring, impairment and plant closing costs $ 47 2018 Restructuring Activities In 2011, we implemented a significant restructuring of our Textile Effects segment (the “Textile Effects Restructuring Plan”), including the closure of our production facilities and business support offices in Basel, Switzerland. In connection with this plan, we recorded restructuring reserves covering, among other things, a non-cancelable long-term service agreement. In the fourth quarter of 2018, we settled this agreement in exchange for the payment of $10 million, $8 million of which will be paid in 2019 and $2 million will be paid in 2023. In connection with this settlement, we reversed the related restructuring reserve and recorded a net credit of $29 million in the fourth quarter of 2018. In addition, during 2018, we recorded a credit of $4 million primarily related to a gain on the sale of land at the Basel, Switzerland site. Our Corporate and other segment recorded restructuring expense of $15 million in 2018 related to corporate initiatives. 2017 Restructuring Activities In September 2011, we implemented the Textile Effects Restructuring Plan. In connection with this restructuring plan, during the year ended December 31, 2017, our Textile Effects segment recorded restructuring expense of approximately $6 million associated with this initiative, including $2 million for non-cancelable long-term contract termination costs and $4 million for decommissioning. During the first quarter of 2017, we implemented a restructuring program to improve competitiveness in our Textile Effects segment. In connection with this restructuring program, we recorded restructuring expense of $7 million in the year ended December 31, 2017 related primarily to workforce reductions. 2016 R estructuring A ctivities In December 2015, our Performance Products segment announced plans for a reorganization of its commercial and technical functions and a refocused divisional business strategy to better position the segment for growth in coming years. In addition, a program was launched to capture growth opportunities, improve manufacturing cost efficiency and reduce inventories. In connection with this restructuring program, we recorded restructuring expense of $16 million in 2016. All expected charges have been incurred as of the end of 2016. In connection with the Textile Effects Restructuring Plan during 2016, our Textile Effects segment recorded charges of $9 million for non-cancelable long-term contract termination costs and $20 million for decommissioning associated with this initiative. |
OTHER NONCURRENT LIABILITIES
OTHER NONCURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
OTHER NONCURRENT LIABILITIES | |
OTHER NONCURRENT LIABILITIES | 13. OTHER NONCURRENT LIABILITIES Other noncurrent liabilities consisted of the following (dollars in millions): Huntsman Corporation December 31, 2018 2017 Pension liabilities $ 718 $ 715 Other postretirement benefits 65 73 Employee benefit accrual 32 34 Other 258 264 Total $ 1,073 $ 1,086 Huntsman International December 31, 2018 2017 Pension liabilities $ 718 $ 715 Other postretirement benefits 65 73 Employee benefit accrual 32 34 Other 246 250 Total $ 1,061 $ 1,072 |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2018 | |
DEBT | |
DEBT | 14. DEBT Outstanding debt, net of debt issuance costs, of consolidated entities consisted of the following (dollars in millions): Huntsman Corporation December 31, 2018 2017 Revolving credit facility $ 50 $ — Amounts outstanding under A/R programs 252 180 Senior notes 1,892 1,927 Variable interest entities 86 107 Other 40 84 Total debt $ 2,320 $ 2,298 Total current portion of debt $ 96 $ 40 Long-term portion of debt 2,224 2,258 Total debt $ 2,320 $ 2,298 Huntsman International December 31, 2018 2017 Revolving credit facility $ 50 $ — Amounts outstanding under A/R programs 252 180 Senior notes 1,892 1,927 Variable interest entities 86 107 Other 40 84 Total debt, excluding debt to affiliates $ 2,320 $ 2,298 Total current portion of debt $ 96 $ 40 Long-term portion of debt 2,224 2,258 Total debt, excluding debt to affiliates $ 2,320 $ 2,298 Total debt, excluding debt to affiliates $ 2,320 $ 2,298 Notes payable to affiliates-current 100 100 Notes payable to affiliates-noncurrent 488 742 Total debt $ 2,908 $ 3,140 Direct and Subsidiary Debt Huntsman Corporation’s direct debt and guarantee obligations consist of a guarantee of certain indebtedness incurred from time to time to finance certain insurance premiums. Substantially all of our other debt, including the facilities described below, has been incurred by our subsidiaries (primarily Huntsman International); Huntsman Corporation is not a guarantor of such subsidiary debt. Certain of our subsidiaries are designated as nonguarantor subsidiaries and have third‑party debt agreements. These debt agreements contain certain restrictions with regard to dividends, distributions, loans or advances. In certain circumstances, the consent of a third party would be required prior to the transfer of any cash or assets from these subsidiaries to us. Debt Issuance Costs We record debt issuance costs related to a debt liability on the balance sheet as a reduction in the face amount of that debt liability. As of December 31, 2018 and 2017, the amount of debt issuance costs directly reducing the debt liability was $8 million and $11 million, respectively. We record the amortization of debt issuance costs as interest expense. Revolving Credit Facility On May 21, 2018, Huntsman International entered into the 2018 Revolving Credit Facility. Borrowings under the 2018 Revolving Credit Facility will bear interest at the rates specified in the credit agreement governing the 2018 Revolving Credit Facility, which will vary based on the type of loan and Huntsman International’s debt ratings. Unless earlier terminated, the 2018 Revolving Credit Facility will mature in May 2023. Huntsman International may increase the 2018 Revolving Credit Facility commitments up to an additional $500 million, subject to the satisfaction of certain conditions. In connection with entering into the 2018 Revolving Credit Facility, Huntsman International terminated all commitments and repaid all obligations under the Prior Credit Facility. In addition, we recognized a loss of early extinguishment of debt of $3 million. Upon the termination of the Prior Credit Facility, all guarantees of the obligations under the Prior Credit Facility were terminated, and all liens granted under the Prior Credit Facility were released. As of December 31, 2018, our 2018 Revolving Credit Facility was as follows (dollars in millions): Unamortized Discounts and Committed Principal Debt Issuance Carrying Facility Amount Outstanding Costs Value Interest Rate(2) Maturity 2018 Revolving Credit Facility $ 1,200 $ 50 $ — $ 50 LIBOR plus 1.75% (1) On December 31, 2018, we had an additional $9 million (U.S. dollar equivalents) of letters of credit and bank guarantees issued and outstanding under our 2018 Revolving Credit Facility. (2) Interest rates on borrowings under the 2018 Revolving Credit Facility vary based on the type of loan and Huntsman International’s debt ratings. The then applicable interest rate as of December 31, 2018 was 1.75% above LIBOR. In connection with the Demilec Acquisition on April 23, 2018, we borrowed $275 million under the Prior Credit Facility and $75 million under our U.S. A/R Program. In connection with our entry into the 2018 Revolving Credit Facility on May 21, 2018, we borrowed $275 million under the 2018 Revolving Credit Facility and repaid all obligations under our Prior Credit Facility. During 2018, we repaid an aggregate $225 million under our 2018 Revolving Credit Facility. A/R Programs Our A/R Programs are structured so that we grant a participating undivided interest in certain of our trade receivables to the U.S. SPE and the EU SPE. We retain the servicing rights and a retained interest in the securitized receivables. Information regarding our A/R Programs as of December 31, 2018 was as follows (monetary amounts in millions): Maximum Funding Amount Facility Maturity Availability(1) Outstanding Interest Rate(2) U.S. A/R Program April 2020 $ 250 $ 165 (3) Applicable rate plus 0.95% EU A/R Program April 2020 € 150 € 76 Applicable rate plus 1.30% (approximately $171) (approximately $87) (1) The amount of actual availability under our A/R Programs may be lower based on the level of eligible receivables sold, changes in the credit ratings of our customers, customer concentration levels and certain characteristics of the accounts receivable being transferred, as defined in the applicable agreements. (2) Applicable rate for our U.S. A/R Program is defined by the lender as USD LIBOR. Applicable rate for our EU A/R Program is either GBP LIBOR, USD LIBOR or EURIBOR. (3) As of December 31, 2018, we had approximately $5 million (U.S. dollar equivalents) of letters of credit issued and outstanding under our U.S. A/R Program. On April 21, 2017, we entered into amendments to our A/R Programs that, among other things, extend the scheduled termination dates to April 2020. As of December 31, 2018 and December 31, 2017, $341 million and $334 million, respectively, of accounts receivable were pledged as collateral under our A/R Programs from continuing operations. Notes As of December 31, 2018, we had outstanding the following notes (monetary amounts in millions): Unamortized Premiums/ Discounts and Debt Notes Maturity Interest Rate Amount Outstanding Issuance Costs 2020 Senior Notes November 2020 4.875 % $650 ($648 carrying value) $ (2) 2021 Senior Notes April 2021 5.125 % €445 (€444 carrying value ($507)) — 2022 Senior Notes November 2022 5.125 % $400 ($398 carrying value) (2) 2025 Senior Notes April 2025 4.250 % €300 (€298 carrying value ($339)) (3) The 2020, 2021, 2022 and 2025 Senior Notes are general unsecured senior obligations of Huntsman International. The indentures impose certain limitations on the ability of Huntsman International and its subsidiaries to, among other things, incur additional indebtedness secured by any principal properties, incur indebtedness of nonguarantor subsidiaries, enter into sale and leaseback transactions with respect to any principal properties and consolidate or merge with or into any other person or lease, sell or transfer all or substantially all of its properties and assets. Upon the occurrence of certain change of control events, holders of the 2020, 2021, 2022 and 2025 Senior Notes will have the right to require that Huntsman International purchase all or a portion of such holder’s notes in cash at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid interest to the date of repurchase. Variable Interest Entity Debt As of December 31, 2018, AAC, our consolidated 50%-owned joint venture, had $86 million outstanding under its loan commitments and debt financing arrangements. As of December 31, 2018, we have $25 million classified as current debt and $61 million as long-term debt on our consolidated balance sheets. We do not guarantee these loan commitments, and AAC is not a guarantor of any of our other debt obligations. Other Debt On July 5, 2018, Huntsman Polyurethanes Shanghai, one of our majority-owned subsidiaries, made an early repayment of RMB 277 million (approximately $42 million) of term loans. Following the repayment, there are no borrowings outstanding. Note Payable from Huntsman International to Huntsman Corporation As of December 31, 2018, we have a loan of $588 million to our subsidiary, Huntsman International. The Intercompany Note is unsecured and $100 million of the outstanding amount is classified as current as of December 31, 2018 on our consolidated balance sheets. As of December 31, 2018, under the terms of the Intercompany Note, Huntsman International promises to pay us interest on the unpaid principal amount at a rate per annum based on the previous monthly average borrowing rate obtained under our U.S. A/R Program, less 10 basis points (provided that the rate shall not exceed an amount that is 25 basis points less than the monthly average borrowing rate obtained for the U.S. LIBOR‑based borrowings under our 2018 Revolving Credit Facility). Compliance With Covenants Our 2018 Revolving Credit Facility contains a financial covenant regarding the leverage ratio of Huntsman International and its subsidiaries. The 2018 Revolving Credit Facility also contains other customary covenants and events of default for credit facilities of this type. Upon an event of default that is not cured or waived within any applicable cure periods, in addition to other remedies that may be available to the lenders, the obligations under the 2018 Revolving Credit Facility may be accelerated. The agreements governing our A/R Programs also contain certain receivable performance metrics. Any material failure to meet the applicable A/R Programs’ metrics could lead to an early termination event under the A/R Programs, which could require us to cease our use of such facilities, prohibiting us from additional borrowings against our receivables or, at the discretion of the lenders, requiring that we repay the A/R Programs in full. An early termination event under the A/R Programs would also constitute an event of default under our 2018 Revolving Credit Facility, which could require us to pay off the balance of the 2018 Revolving Credit Facility in full and could result in the loss of our 2018 Revolving Credit Facility. We believe that we are in compliance with the covenants governing our material debt instruments, including our 2018 Revolving Credit Facility, our A/R Programs and our notes. Maturities The scheduled maturities of our debt (excluding debt to affiliates) by year as of December 31, 2018 are as follows (dollars in millions): Year ending December 31, 2019 $ 96 2020 933 2021 533 2022 402 2023 2 Thereafter 354 $ 2,320 |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2018 | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 15. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES We are exposed to market risks, such as changes in interest rates, foreign exchange rates and commodity prices. From time to time, we enter into transactions, including transactions involving derivative instruments, to manage certain of these exposures. We also hedge our net investment in certain European operations. Changes in the fair value of the hedge in the net investment of certain European operations are recorded in accumulated other comprehensive loss. In connection with the December 3, 2018 sale of Venator ordinary shares to Bank of America N.A., we recorded a forward swap. See “Note 4. Discontinued Operations and Business Dispositions” and “Note 16. Fair Value.” Interest Rate Risk Through our borrowing activities, we are exposed to interest rate risk. Such risk arises due to the structure of our debt portfolio, including the mix of fixed and floating interest rates. Actions taken to reduce interest rate risk include managing the mix and rate characteristics of various interest-bearing liabilities, as well as entering into interest rate derivative instruments. From time to time, we may purchase interest rate swaps and/or other derivative instruments to reduce the impact of changes in interest rates on our floating-rate long-term debt. Under interest rate swaps, we agree with other parties to exchange, at specified intervals, the difference between fixed-rate and floating-rate interest amounts calculated by reference to an agreed notional principal amount. Huntsman International had entered into several interest rate contracts to hedge the variability caused by monthly changes in cash flow due to associated changes in LIBOR under our Senior Credit Facilities. These swaps were designated as cash flow hedges and the effective portion of the changes in the fair value of the swaps were recorded in other comprehensive (loss) income. These swaps expired in April 2017. During 2018, accumulated other comprehensive loss of nil was reclassified to earnings. The actual amount that will be reclassified to earnings over the next twelve months may vary from this amount due to changing market conditions. We would be exposed to credit losses in the event of nonperformance by a counterparty to our derivative financial instruments. We anticipate, however, that the counterparties will be able to fully satisfy their obligations under the contracts. Market risk arises from changes in interest rates. Foreign Exchange Rate Risk Our cash flows and earnings are subject to fluctuations due to exchange rate variation. Our revenues and expenses are denominated in various currencies. We enter into foreign currency derivative instruments to minimize the short-term impact of movements in foreign currency rates. Where practicable, we generally net multicurrency cash balances among our subsidiaries to help reduce exposure to foreign currency exchange rates. Certain other exposures may be managed from time to time through financial market transactions, principally through the purchase of spot or forward foreign exchange contracts (generally with maturities of three months or less). We do not hedge our currency exposures in a manner that would eliminate the effect of changes in exchange rates on our cash flows and earnings. As of December 31, 2018 and 2017, we had approximately $151 million and $93 million, respectively, notional amount (in U.S. dollar equivalents) outstanding in foreign currency contracts with a term of approximately one month. In November 2014, we entered into two five-year cross-currency interest rate contracts and one eight-year cross-currency interest rate contract to swap an aggregate notional $200 million for an aggregate notional €161 million. The swap was designated as a hedge of net investment for financial reporting purposes. In August 2017, we terminated these cross-currency interest rate contracts and received $7 million from the counterparties. A portion of our debt is denominated in euros. We also finance certain of our non-U.S. subsidiaries with intercompany loans that are, in many cases, denominated in currencies other than the entities’ functional currency. We manage the net foreign currency exposure created by this debt through various means, including cross-currency swaps, the designation of certain intercompany loans as permanent loans because they are not expected to be repaid in the foreseeable future and the designation of certain debt and swaps as net investment hedges. Foreign currency transaction gains and losses on intercompany loans that are not designated as permanent loans are recorded in earnings. Foreign currency transaction gains and losses on intercompany loans that are designated as permanent loans are recorded in other comprehensive (loss) income. From time to time, we review such designation of intercompany loans. We review our non‑U.S. dollar denominated debt and derivative instruments to determine the appropriate amounts designated as hedges. As of December 31, 2018, we have designated approximately €510 million (approximately $581 million) of euro‑denominated debt as a hedge of our net investment. For the years ended December 31, 2018, 2017 and 2016, the amounts recognized on the hedge of our net investment were a gain of $35 million, a loss of $96 million and a gain of $27 million, respectively, and were recorded in other comprehensive (loss) income. Commodity Prices Risk Inherent in our business is exposure to price changes for several commodities. However, our exposure to changing commodity prices is somewhat limited since the majority of our raw materials are acquired at posted or market related prices, and sales prices for many of our finished products are at market related prices which are largely set on a monthly or quarterly basis in line with industry practice. Consequently, we do not generally hedge our commodity exposures. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2018 | |
FAIR VALUE | |
FAIR VALUE | 16. FAIR VALUE The fair values of our financial instruments were as follows (dollars in millions): December 31, 2018 December 31, 2017 Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value Non-qualified employee benefit plan investments $ 23 $ 23 $ 33 $ 33 Forward swap contract related to the sale of investment in Venator 14 14 — — Long-term debt (including current portion) (2,320) (2,403) (2,298) (2,483) The carrying amounts reported in the balance sheets of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the immediate or short‑term maturity of these financial instruments. We elected the fair value option to account for our equity method investment in Venator post deconsolidation. The fair value of our remaining investment in Venator reported in investment in unconsolidated affiliates is obtained through market observable pricing using prevailing market prices. See “Note 7. Investment in Unconsolidated Investments.” The fair values of non‑qualified employee benefit plan investments are obtained through market observable pricing using prevailing market prices. The fair value of the forward swap contract related to the sale of investment in Venator is determined based on the average of the daily volume weighted average price of Venator ordinary shares over an agreed period. The estimated fair values of our long‑term debt are based on quoted market prices for the identical liability when traded as an asset in an active market (Level 1). The fair value estimates presented herein are based on pertinent information available to management as of December 31, 2018 and 2017. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since December 31, 2018, and current estimates of fair value may differ significantly from the amounts presented herein. The following assets are measured at fair value on a recurring basis (dollars in millions): Fair Value Amounts Using Quoted prices Significant other Significant in active markets observable unobservable December 31, for identical inputs inputs Description 2018 assets (Level 1) (Level 2) (Level 3) Assets: Equity securities: Non-qualified employee benefit plan investments $ 23 $ 23 $ — $ — Derivatives: Forward swap contract related to the sale of investment in Venator 14 — 14 — $ 37 $ 23 $ 14 $ — Fair Value Amounts Using Quoted prices Significant other Significant in active markets observable unobservable December 31, for identical inputs inputs Description 2017 assets (Level 1) (Level 2) (Level 3) Assets: Equity securities: Non-qualified employee benefit plan investments $ 33 $ 33 $ — $ — The following table shows a reconciliation of beginning and ending balances for the year ended December 31, 2017 for instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (dollars in millions). During the year ended December 31, 2018, there were no instruments categorized as Level 3 within the fair value hierarchy. Cross-Currency Interest Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Rate Contracts Beginning balance, January 1, 2017 $ 29 Transfers into Level 3 — Transfers out of Level 3 — Total (losses) gains: Included in earnings — Included in other comprehensive (loss) income (22) Purchases, sales, issuances and settlements (7) Ending balance, December 31, 2017 $ — The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets still held at December 31, 2017 $ — There were no gains or losses (realized or unrealized) included in earnings for instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3). |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2018 | |
EMPLOYEE BENEFIT PLANS | |
EMPLOYEE BENEFIT PLANS | 17. EMPLOYEE BENEFIT PLANS Defined Benefit and Other Postretirement Benefit We provide a trusteed, non contributory defined benefit pension plan (the “Plan”) that covers the majority of our 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 was subject to the terms of negotiated contracts. For participating employees, benefits accrued under the prior formula were converted to opening cash balance accounts. The cash balance benefit formula provides annual pay credits from 6% to 12% of eligible pay, depending on age and service, plus accrued interest. 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. 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 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. We also sponsor unfunded postretirement benefit plans other than pensions, which provide medical and life insurance benefits. Effective August 1, 2015, the post retirement benefit plans were closed to new entrants. Our postretirement benefit plans provide access to two fully insured Medicare Part D plans 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. We do not subsidize the premium cost of these plans; the premiums are entirely paid by the retirees. 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. 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, 2018 and 2017 (dollars in millions): Defined Benefit Plans Other Postretirement Benefit Plans 2018 2017 2018 2017 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Plans Plans Plans Plans Plans Plans Plans Plans Change in benefit obligation Benefit obligation at beginning of year $ 1,153 $ 2,259 $ 1,049 $ 2,064 $ 80 $ — $ 93 $ — Service cost 32 32 30 33 2 — 3 — Interest cost 44 37 44 35 3 — 3 — Participant contributions — 5 — 5 2 — 2 — Plan amendments — 4 — (1) — — — — Foreign currency exchange rate changes — (74) — 207 — — — — Special termination benefits — — — 1 — — — — Settlements/transfers/divestitures (6) (3) — — — — — — Actuarial (gain) loss (81) (30) 91 (10) (9) — (12) — Benefits paid (62) (73) (61) (75) (7) — (9) — Benefit obligation at end of year $ 1,080 $ 2,157 $ 1,153 $ 2,259 $ 71 $ — $ 80 $ — Change in plan assets Fair value of plan assets at beginning of year $ 821 $ 1,883 $ 721 $ 1,639 $ — $ — $ — $ — Actual return on plan assets (38) (38) 104 109 — — — — Foreign currency exchange rate changes — (62) — 166 — — — — Participant contributions — 5 — 5 2 — 2 — Settlements/transfers/divestitures (6) (3) — — — — — — Company contributions 52 39 57 39 5 — 7 — Benefits paid (62) (73) (61) (75) (7) — (9) — Fair value of plan assets at end of year $ 767 $ 1,751 $ 821 $ 1,883 $ — $ — $ — $ — Funded status Fair value of plan assets $ 767 $ 1,751 $ 821 $ 1,883 $ — $ — $ — $ — Benefit obligation 1,080 2,157 1,153 2,259 71 — 80 — Accrued benefit cost $ (313) $ (406) $ (332) $ (376) $ (71) $ — $ (80) $ — Amounts recognized in balance sheet: Noncurrent asset $ — $ 10 $ — $ 22 $ — $ — $ — $ — Current liability (5) (6) (10) (5) (6) — (7) — Noncurrent liability (308) (410) (322) (393) (65) — (73) — $ (313) $ (406) $ (332) $ (376) $ (71) $ — $ (80) $ — Huntsman Corporation Defined Benefit Plans Other Postretirement Benefit Plans 2018 2017 2018 2017 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Plans Plans Plans Plans Plans Plans Plans Plans Amounts recognized in accumulated other comprehensive loss: Net actuarial loss $ 401 $ 784 $ 419 $ 1,000 $ 21 $ — $ 30 $ — Prior service credit (13) (27) (15) (29) (38) — (45) — $ 388 $ 757 $ 404 $ 971 $ (17) $ — $ (15) $ — Huntsman International Defined Benefit Plans Other Postretirement Benefit Plans 2018 2017 2018 2017 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Plans Plans Plans Plans Plans Plans Plans Plans Amounts recognized in accumulated other comprehensive loss: Net actuarial loss $ 402 $ 793 $ 420 1,030 $ 21 $ — $ 30 $ — Prior service credit (13) (27) (15) (29) (38) — (45) — $ 389 $ 766 $ 405 $ 1,001 $ (17) $ — $ (15) $ — The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost of continuing operations during the next fiscal year are as follows (dollars in millions): Huntsman Corporation Other Postretirement Defined Benefit Plans Benefit Plans Non-U.S. Non-U.S. U.S. Plans Plans U.S. Plans Plans Actuarial loss $ 26 $ 45 $ 1 $ — Prior service credit (2) (4) (5) — Total $ 24 $ 41 $ (4) $ — Huntsman International Other Postretirement Defined Benefit Plans Benefit Plans Non-U.S. Non-U.S. U.S. Plans Plans U.S. Plans Plans Actuarial loss $ 27 $ 48 $ 1 $ — Prior service credit (2) (4) (5) — Total $ 25 $ 44 $ (4) $ — Components of net periodic benefit costs of continuing operations for the years ended December 31, 2018, 2017 and 2016 were as follows (dollars in millions): Huntsman Corporation Defined Benefit Plans U.S. plans Non-U.S. plans 2018 2017 2016 2018 2017 2016 Service cost $ 32 $ 30 $ 30 $ 32 $ 33 $ 29 Interest cost 44 44 47 37 35 41 Expected return on plan assets (61) (55) (54) (109) (100) (93) Amortization of prior service credit (2) (2) (5) (5) (5) (4) Amortization of actuarial loss 34 30 25 38 45 31 Settlement loss 2 — — — — — Special termination benefits — — — — 1 — Net periodic benefit cost $ 49 $ 47 $ 43 $ (7) $ 9 $ 4 Other Postretirement Benefit Plans U.S. plans Non-U.S. plans 2018 2017 2016 2018 2017 2016 Service cost $ 2 $ 3 $ 2 $ — $ — $ — Interest cost 3 3 4 — — — Amortization of prior service credit (6) (6) (7) — — — Amortization of actuarial loss 2 3 2 — — — Net periodic benefit cost $ 1 $ 3 $ 1 $ — $ — $ — Huntsman International Defined Benefit Plans U.S. plans Non-U.S. plans 2018 2017 2016 2018 2017 2016 Service cost $ 32 $ 30 $ 30 $ 32 $ 33 $ 29 Interest cost 44 44 47 37 35 41 Expected return on plan assets (61) (55) (54) (109) (100) (93) Amortization of prior service credit (2) (2) (5) (5) (5) (4) Amortization of actuarial loss 34 30 25 41 48 34 Settlement loss 2 — — — — — Special termination benefits — — — — 1 — Net periodic benefit cost $ 49 $ 47 $ 43 $ (4) $ 12 $ 7 Other Postretirement Benefit Plans U.S. plans Non-U.S. plans 2018 2017 2016 2018 2017 2016 Service cost $ 2 $ 3 $ 2 $ — $ — $ — Interest cost 3 3 4 — — — Amortization of prior service credit (6) (6) (7) — — — Amortization of actuarial loss 2 3 2 — — — Net periodic benefit cost $ 1 $ 3 $ 1 $ — $ — $ — The amounts recognized in net periodic benefit cost and other comprehensive income (loss) as of December 31, 2018, 2017 and 2016 were as follows (dollars in millions): Huntsman Corporation Defined Benefit Plans U.S. plans Non-U.S. plans 2018 2017 2016 2018 2017 2016 Current year actuarial loss (gain) $ 18 $ 42 $ 74 $ 117 $ (42) $ 235 Amortization of actuarial loss (34) (30) (25) (38) (61) (42) Current year prior service (credit) cost — — — 4 (2) — Amortization of prior service credit 2 2 5 5 4 4 Settlements (2) — — — — — Curtailment (gain)/loss — — — — 3 — Total recognized in other comprehensive income (loss) (16) 14 54 88 (98) 197 Amounts related to discontinued operations — 3 — — 37 (65) Total recognized in other comprehensive income (loss) in continuing operations (16) 17 54 88 (61) 132 Net periodic benefit cost 49 47 43 (7) 9 4 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 33 $ 64 $ 97 $ 81 $ (52) $ 136 Other Postretirement Benefit Plans U.S. plans Non-U.S. plans 2018 2017 2016 2018 2017 2016 Current year actuarial (gain) loss $ (10) $ (12) $ 9 $ — $ — $ — Amortization of actuarial loss (2) (3) (2) — (1) — Current year prior service credit — — — — — (2) Amortization of prior service credit 6 6 7 — 2 — Total recognized in other comprehensive income (loss) (6) (9) 14 — 1 (2) Amounts related to discontinued operations — — (1) — (1) 3 Total recognized in other comprehensive income (loss) in continuing operations (6) (9) 13 — — 1 Net periodic benefit cost 1 3 1 — — — Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (5) $ (6) $ 14 $ — $ — $ 1 Huntsman International Defined Benefit Plans U.S. plans Non-U.S. plans 2018 2017 2016 2018 2017 2016 Current year actuarial loss (gain) $ 18 $ 42 $ 74 $ 117 $ (42) $ 235 Amortization of actuarial loss (34) (30) (25) (41) (68) (49) Current year prior service credit — — — 4 (2) — Amortization of prior service credit 2 2 5 5 4 4 Settlements (2) — — — — — Curtailment (gain)/loss — — — — 3 — Total recognized in other comprehensive income (loss) (16) 14 54 85 (105) 190 Amounts related to discontinued operations — 3 — — 42 (61) Total recognized in other comprehensive income (loss) in continuing operations (16) 17 54 85 (63) 129 Net periodic benefit cost 49 47 43 (4) 12 7 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 33 $ 64 $ 97 $ 81 $ (51) $ 136 Other Postretirement Benefit Plans U.S. plans Non-U.S. plans 2018 2017 2016 2018 2017 2016 Current year actuarial (gain) loss $ (10) $ (12) $ 9 $ — $ — $ — Amortization of actuarial loss (2) (3) (2) — (1) — Current year prior service credit — — — — — (2) Amortization of prior service credit 6 6 7 — 2 — Total recognized in other comprehensive income (loss) (6) (9) 14 — 1 (2) Amounts related to discontinued operations — — (1) — (1) 3 Total recognized in other comprehensive income (loss) in continuing operations (6) (9) 13 — — 1 Net periodic benefit cost 1 3 1 — — — Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (5) $ (6) $ 14 $ — $ — $ 1 The following weighted‑average assumptions were used to determine the projected benefit obligation at the measurement date and the net periodic pension cost for the year: Defined Benefit Plans U.S. plans Non-U.S. plans 2018 2017 2016 2018 2017 2016 Projected benefit obligation Discount rate 4.39 % 3.74 % 4.24 % 1.75 % 1.65 % 1.61 % Rate of compensation increase 4.13 % 4.13 % 4.17 % 2.64 % 3.38 % 3.37 % Net periodic pension cost Discount rate 3.74 % 4.24 % 4.90 % 1.65 % 1.61 % 2.15 % Rate of compensation increase 4.13 % 4.17 % 4.17 % 3.38 % 3.37 % 3.28 % Expected return on plan assets 7.55 % 7.55 % 7.54 % 5.88 % 5.68 % 5.91 % Other Postretirement Benefit Plans U.S. plans Non-U.S. plans 2018 2017 2016 2018 2017 2016 Projected benefit obligation Discount rate 4.26 % 3.57 % 4.03 % 3.50 % 3.30 % 3.50 % Net periodic pension cost Discount rate 3.57 % 4.03 % 4.68 % 3.30 % 3.50 % 3.70 % At December 31, 2018 and 2017 the health care trend rate used to measure the expected increase in the cost of benefits was assumed to be 6.75%, decreasing to 5% in 2025 and after. Assumed health care cost trend rates can have a significant effect on the amounts reported for the postretirement benefit plans. 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 (2) 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, 2018 and 2017 were as follows (dollars in millions): U.S. plans Non-U.S. plans 2018 2017 2018 2017 Projected benefit obligation in excess of plan assets Projected benefit obligation $ 1,080 $ 1,153 $ 1,790 $ 1,213 Fair value of plan assets 767 821 1,375 815 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, 2018 and 2017 were as follows (dollars in millions): U.S. plans Non-U.S. plans 2018 2017 2018 2017 Accumulated benefit obligation in excess of plan assets Projected benefit obligation $ 1,080 $ 1,153 $ 986 $ 1,026 Accumulated benefit obligation 1,057 1,127 919 957 Fair value of plan assets 767 821 608 638 Expected future contributions and benefit payments related to continuing operations are as follows (dollars in millions): U.S. Plans Non-U.S. Plans Other Other Defined Postretirement Defined Postretirement Benefit Benefit Benefit Benefit Plans Plans Plans Plans 2019 expected employer contributions To plan trusts $ 50 $ 6 $ 38 $ — Expected benefit payments 2019 72 6 69 — 2020 63 6 69 — 2021 63 6 73 — 2022 67 6 75 — 2023 114 6 80 — 2024 - 2028 376 30 428 — Our investment strategy with respect to pension assets is to pursue an investment plan that, over the long term, is expected to protect the funded status of the plan, enhance the real purchasing power of plan assets, and not threaten the plan’s ability to meet currently committed obligations. Additionally, our investment strategy is to achieve returns on plan assets, subject to a prudent level of portfolio risk. Plan assets are invested in a broad range of investments. These investments are diversified in terms of domestic and international equities, both growth and value funds, including small, mid and large capitalization equities; short‑term and long‑term debt securities; real estate; and cash and cash equivalents. The investments are further diversified within each asset category. The portfolio diversification provides protection against a single investment or asset category having a disproportionate impact on the aggregate performance of the plan assets. Our pension plan assets are managed by outside investment managers. The investment managers value our plan assets using quoted market prices, other observable inputs or unobservable inputs. For certain assets, the investment managers obtain third‑party appraisals at least annually, which use valuation techniques and inputs specific to the applicable property, market, or geographic location. During 2018, there were no transfers into or out of Level 3 assets. We have established target allocations for each asset category. Our pension plan assets are periodically rebalanced based upon our target allocations. The fair value of plan assets for the pension plans was $2.5 billion and $2.7 billion at December 31, 2018 and 2017, respectively. The following plan assets are measured at fair value on a recurring basis (dollars in millions): Fair Value Amounts Using Quoted prices in active Significant other Significant December 31, markets for identical observable inputs unobservable inputs Asset category 2018 assets (Level 1) (Level 2) (Level 3) U.S. pension plans: Equities $ 382 $ 275 $ 107 $ — Fixed income 311 240 71 — Real estate/other 74 — — 74 Cash — — — — Total U.S. pension plan assets $ 767 $ 515 $ 178 $ 74 Non-U.S. pension plans: Equities $ 471 $ 161 $ 310 $ — Fixed income 747 496 251 — Real estate/other 497 93 348 56 Cash 36 36 — — Total Non-U.S. pension plan assets $ 1,751 $ 786 $ 909 $ 56 Fair Value Amounts Using Quoted prices in active Significant other Significant December 31, Markets for identical Observable inputs Unobservable inputs Asset category 2017 assets (Level 1) (Level 2) (Level 3) U.S. pension plans: Equities $ 440 $ 318 $ 122 $ — Fixed income 311 239 72 — Real estate/other 70 — — 70 Cash — — — — Total U.S. pension plan assets $ 821 $ 557 $ 194 $ 70 Non-U.S. pension plans: Equities $ 602 $ 230 $ 372 $ — Fixed income 739 477 262 — Real estate/other 508 104 349 55 Cash 34 33 1 — Total Non-U.S. pension plan assets $ 1,883 $ 844 $ 984 $ 55 The following table Real Estate/Other Year ended December 31, 2018 2017 Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) Balance at beginning of period $ 125 $ 106 Return on pension plan assets 5 14 Purchases, sales and settlements — 5 Transfers into (out of) Level 3 — — Balance at end of period $ 130 $ 125 Based upon historical returns, the expectations of our investment committee and outside advisors, the expected long‑term rate of return on the pension assets is estimated to be between 5.68% and 7.55%. The asset allocation for our pension plans at December 31, 2018 and 2017 and the target allocation for 2019, by asset category are as follows: Target Allocation Allocation at December 31, Asset category 2019 2018 2017 U.S. pension plans: Equities 53 % 50 % 54 % Fixed income 39 % 41 % 38 % Real estate/other 8 % 9 % 8 % Cash — % — % — Total U.S. pension plans 100 % 100 % 100 % Non-U.S. pension plans: Equities 37 % 27 % 32 % Fixed income 41 % 43 % 39 % Real estate/other 13 % 28 % 27 % Cash 9 % 2 % 2 % Total non-U.S. pension plans 100 % 100 % 100 % Equity securities in our pension plans did not include any direct investments in equity securities of our Company or our affiliates at the end of 2018. Defined Contribution Plans—U.S. We had a money purchase pension plan that covered substantially all of our domestic employees who were hired prior to January 1, 2004. Employer contributions were made based on a percentage of employees’ earnings (ranging up to 8%). During 2014, we closed this plan to non-union participants, and in 2015, we closed this plan to union associates. We continue to provide equivalent benefits to those who were covered under this plan into their salary deferral account. We have a salary deferral plan covering substantially all U.S. employees. Plan participants may elect to make voluntary contributions to this plan up to a specified amount of their compensation. We contribute an amount equal to the participant’s contribution, not to exceed 4 % of the participant’s compensation. For new hires who are not eligible for the cash balance plan, and associates who were covered by the money purchase pension plan prior to its closure, we contribute an additional amount into their salary deferral accounts, not to exceed 6% of the participant’s compensation. Our total combined expense for the above defined contribution plans for each of the years ended December 31, 2018, 2017 and 2016 was $21 million, $22 million and $20 million, respectively. Defined Contribution Plans—Non-U.S. We have defined contribution plans in a variety of non-U.S. locations. All UK associates are eligible to participate in the Huntsman UK Pension Plan, a contract - based arrangement with a third party. Company contributions vary by business during a five-year transition period. Plan participants elect to make voluntary contributions to this plan up to a specified amount of their compensation. We contribute a matching amount not to exceed 12% of the participant’s salary for new hires and 15% of the participant’s salary for all other participants. Our total combined expense for these defined contribution plans for the years ended December 31, 2018, 2017 and 2016 was $4 million, $5 million and $4 million, respectively, primarily related to the Huntsman UK Pension Plan. Supplemental Salary Deferral Plan and Supplemental Executive Retirement Plan The Huntsman Supplemental Savings Plan (the “SSP”) is a non-qualified plan covering key management employees and allows participants to defer amounts that would otherwise be paid as compensation. The participant can defer up to 75% of their salary and bonus each year. This plan also provides benefits that would be provided under the Huntsman Salary Deferral Plan if that plan were not subject to legal limits on the amount of contributions that can be allocated to an individual in a single year. The SSP was amended and restated effective as of January 1, 2005 to allow eligible executive employees to comply with Section 409A of the Internal Revenue Code of 1986. The Huntsman Supplemental Executive Retirement Plan (the “SERP”) is an unfunded non-qualified pension plan established to provide certain executive employees with benefits that could not be provided, due to legal limitations, under the Huntsman Defined Benefit Pension Plan, a qualified defined benefit pension plan, and the Huntsman Money Purchase Pension Plan, a qualified money purchase pension plan. Assets of these plans are included in other noncurrent assets and as of December 31, 2018 and 2017 were $32 million and $33 million, respectively. During each of the years ended December 31, 2018, 2017 and 2016, we expensed a total of $1 million as contributions to the SSP and the SERP. Stock-Based Incentive Plan On May 5, 2016, our stockholders approved a new Huntsman Corporation 2016 Stock Incentive Plan (the “2016 Stock Incentive Plan”), which reserved 8.2 million shares for issuance. The Huntsman Corporation Stock Incentive Plan, as amended and restated (the “Prior Plan”), remains in effect for outstanding awards granted pursuant to the Prior Plan, but no further awards may be granted under the Prior Plan. Under the 2016 Stock Incentive Plan, we may grant nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, phantom stock, performance share units and other stock-based awards to our employees, directors and consultants and to employees and consultants of our subsidiaries, provided that incentive stock options may be granted solely to employees. The terms of the grants under both the 2016 Stock Incentive Plan and the Prior Plan are fixed at the grant date. As of December 31, 2018, we had approximately 9.5 million shares remaining under the 2016 Stock Incentive Plan available for grant. See “Note 22. Stock-Based Compensation Plan.” International Plans International employees are covered by various post‑employment arrangements consistent with local practices and regulations. Such obligations are included in other long‑term liabilities in our consolidated balance sheets. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
INCOME TAXES | |
INCOME TAXES | 18. INCOME TAXES The following is a summary of U.S. and non‑U.S. provisions for current and deferred income taxes (dollars in millions): Huntsman Corporation Year ended December 31, 2018 2017 2016 Income tax expense (benefit): U.S. Current $ 57 $ 23 $ 50 Deferred 19 (95) (15) Non-U.S. Current 155 94 55 Deferred (134) 42 19 Total $ 97 $ 64 $ 109 Huntsman International Year ended December 31, 2018 2017 2016 Income tax expense (benefit): U.S. Current $ 57 $ 16 $ 50 Deferred 15 (92) (16) Non-U.S. Current 155 94 55 Deferred (134) 43 19 Total $ 93 $ 61 $ 108 The following schedule reconciles the differences between the U.S. federal income taxes at the U.S. statutory rate to our provision for income taxes (dollars in millions): Huntsman Corporation Year ended December 31, 2018 2017 2016 Income from continuing operations before income taxes $ 942 $ 647 $ 474 Expected tax expense at U.S. statutory rate of 21%, 35% and 35% respectively $ 198 $ 227 $ 166 Change resulting from: State tax expense net of federal benefit 5 (2) (1) Non-U.S. tax rate differentials 29 (64) (32) Non-taxable portion of gain on sale of European surfactants business — — (23) U.S. Tax Reform Act impact 32 (52) — Currency exchange gains/losses (net) (10) 15 (5) Non-U.S. income subject to U.S. tax not offset by U.S. foreign tax credits 16 — — Tax authority audits and dispute resolutions 5 9 2 Share-based compensation excess tax benefits (14) (10) — Change in valuation allowance (185) (72) (38) Fair value adjustments to Venator investment 18 — — Impact of equity method investments (14) (3) (1) Other non-U.S. tax effects, including nondeductible expenses, tax effect of rate changes, transfer pricing adjustments and various withholding taxes 17 7 31 Other U.S. tax effects, including nondeductible expenses and other credits — 9 10 Total income tax expense $ 97 $ 64 $ 109 Huntsman International Year ended December 31, 2018 2017 2016 Income from continuing operations before income taxes $ 924 $ 640 $ 475 Expected tax expense at U.S. statutory rate of 21%, 35% and 35% respectively $ 194 $ 224 $ 165 Change resulting from: State tax expense net of federal benefit 5 (2) (1) Non-U.S. tax rate differentials 29 (64) (32) Non-taxable portion of gain on sale of European surfactants business — — (23) U.S. Tax Reform Act impact 32 (53) — Currency exchange gains/losses (net) (10) 15 (5) Non-U.S. income subject to U.S. tax not offset by U.S. foreign tax credits 16 — — Tax authority audits and dispute resolutions 5 9 2 Share-based compensation excess tax benefits (14) (10) — Change in valuation allowance (185) (72) (39) Fair value adjustments to Venator investment 18 — — Impact of equity method investments (14) (3) (1) Other non-U.S. tax effects, including nondeductible expenses, tax effect of rate changes, transfer pricing adjustments and various withholding taxes 17 8 33 Other U.S. tax effects, including nondeductible expenses and other credits — 9 9 Total income tax expense $ 93 $ 61 $ 108 We operate in many non-U.S. tax jurisdictions with no specific country earning a predominant amount of our off-shore earnings. The vast majority of these countries have income tax rates that are lower than the U.S. statutory rate. During 2018, the average statutory rate for countries with pre-tax income was higher than the average statutory rate for countries with pre-tax losses, resulting in a net expense of $29 million, as compared to the 21% U.S. statutory rate reflected in the reconciliation above. During 2017 and 2016, the average statutory rate for countries with pre-tax income was lower than the average statutory rate for countries with pre-tax losses, almost all of which had statutory rates lower than the U.S. of 35%, resulting in net benefits as compared to the U.S. statutory rate of $64 million and $32 million, respectively, reflected in the reconciliation above. In 2018, the $29 million net expense relates primarily to our operations in China, Germany, India and Luxembourg. In 2017, the $64 million net benefit relates primarily to our Polyurethanes business in The Netherlands, China and the U.K., as well as our Advanced Materials business in Switzerland and our Corporate function in Luxembourg. In 2016, the $32 million net benefit relates primarily to our Polyurethanes business in The Netherlands and China and our Advanced Materials business in Switzerland. In certain non-U.S. tax jurisdictions, our U.S. GAAP functional currency is different than the local tax currency. As a result, foreign exchange gains and losses will impact our effective tax rate. For 2018, 2017 and 2016, this resulted in a $10 million tax benefit, a $15 million tax expense and a $5 million tax benefit, respectively. The U.S. Tax Cuts and Jobs Act (the “U.S. Tax Reform Act”) established new tax laws that affected 2018, including, but not limited to, (1) a reduction of the U.S. federal corporate tax rate; (2) the creation of the base erosion anti-abuse tax (BEAT); (3) a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries; (4) a new provision designed to tax global intangible low-taxed income (“GILTI”); (5) a new limitation on deductible interest expense; and (6) the repeal of the domestic production activity deduction. We have included the effects of these provisions in 2018. Our accounting for the enactment of the U.S. Tax Reform Act is complete for the year ended December 31, 2018. We recorded total tax benefit of $20 million over 2017 and 2018 related to enactment of the U.S. Tax Reform Act. As a result of the U.S. Tax Reform Act, we recorded net tax benefits of $135 million (a provisional tax benefit of $137 million in 2017 offset by a final tax expense of $2 million in 2018) due to a remeasurement of deferred U.S. tax assets and liabilities, and net tax expense of $115 million (a provisional tax expense of $85 million in 2017, a $29 million final federal tax expense in 2018 and a $1 million state tax expense in 2018) due to the transition tax on deemed repatriation of deferred foreign income. Under U.S. GAAP regarding the new GILTI tax rules, we are allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into our measurement of deferred taxes (the “deferred method”). We have selected the “period cost method” as our accounting policy related to the new GILTI tax rules. The stated purpose of the GILTI rules is to generate additional U.S. tax related to shifting income to non-U.S. jurisdictions which incur less than a blended 13.125% non-U.S. tax rate. Our non-U.S. income is subject to a blended rate greater than 13.125% and so we would have expected no GILTI tax impact. In practice, the GILTI regulations result in additional tax liability as a result of expense allocations which limit the ability to utilize foreign tax credits against the GILTI inclusion. For 2018 we have incurred $16 million of tax expense resulting from these expense allocations. The components of income (loss) from continuing operations before income taxes were as follows (dollars in millions): Huntsman Corporation Year ended December 31, 2018 2017 2016 U.S. $ 165 $ (39) $ 91 Non-U.S. 777 686 383 Total $ 942 $ 647 $ 474 Huntsman International Year ended December 31, 2018 2017 2016 U.S. $ 147 $ (46) $ 92 Non-U.S. 777 686 383 Total $ 924 $ 640 $ 475 Components of deferred income tax assets and liabilities were as follows (dollars in millions): Huntsman Corporation December 31, 2018 2017 Deferred income tax assets: Net operating loss carryforwards $ 359 $ 411 Pension and other employee compensation 198 205 Property, plant and equipment 20 29 Intangible assets 79 88 Unrealized currency gains — 8 Other, net 45 46 Total $ 701 $ 787 Deferred income tax liabilities: Property, plant and equipment $ (363) $ (351) Pension and other employee compensation — (3) Intangible assets (34) (7) Unrealized currency losses (37) (27) Other, net (12) (31) Total $ (446) $ (419) Net deferred tax asset before valuation allowance $ 255 $ 368 Valuation allowance—net operating losses and other (227) (424) Net deferred tax asset (liability) $ 28 $ (56) Non-current deferred tax asset 324 208 Non-current deferred tax liability (296) (264) Net deferred tax asset (liability) $ 28 $ (56) Huntsman International December 31, 2018 2017 Deferred income tax assets: Net operating loss carryforwards $ 359 $ 411 Pension and other employee compensation 198 205 Property, plant and equipment 20 29 Intangible assets 79 88 Unrealized currency gains — 8 Other, net 45 46 Total $ 701 $ 787 Deferred income tax liabilities: Property, plant and equipment $ (363) $ (351) Pension and other employee compensation — (3) Intangible assets (34) (7) Unrealized currency losses (37) (27) Other, net (10) (32) Total $ (444) $ (420) Net deferred tax asset before valuation allowance $ 257 $ 367 Valuation allowance—net operating losses and other (227) (424) Net deferred tax asset (liability) $ 30 $ (57) Non-current deferred tax asset 324 208 Non-current deferred tax liability (294) (265) Net deferred tax asset (liability) $ 30 $ (57) We have gross NOLs of $1,449 million in various non‑U.S. jurisdictions. While the majority of the non‑U.S. NOLs have no expiration date, $330 million have a limited life (of which $259 million are subject to a valuation allowance) and $156 million are scheduled to expire in 2019 (of which $138 million are subject to a valuation allowance). We had $91 million of NOLs expire unused in 2018, all of which were subject to a valuation allowance. Included in the $1,449 million of gross non‑U.S. NOLs is $670 million attributable to our Luxembourg entities. As of December 31, 2018, due to the uncertainty surrounding the realization of the benefits of these losses, there is a valuation allowance of $102 million against these net tax‑effected NOLs of $174 million. We evaluate deferred tax assets to determine whether it is more likely than not that they will be realized. Valuation allowances are reviewed each period on a tax jurisdiction by jurisdiction basis to analyze whether there is sufficient positive or negative evidence to support a change in judgment about the realizability of the related deferred tax assets. These conclusions require significant judgment. In evaluating the objective evidence that historical results provide, we consider the cyclicality of businesses and cumulative income or losses during the applicable period. Cumulative losses incurred over the period limits our ability to consider other subjective evidence such as our projections for the future. Our judgments regarding valuation allowances are also influenced by the costs and risks associated with any tax planning idea associated with utilizing a deferred tax asset. During 2018, we released valuation allowances of $132 million. We released significant valuation allowances on certain net deferred tax assets in Switzerland based upon the increased and sustained profitability in our Advanced Materials and Textile Effects businesses. Given Switzerland’s limited seven-year carryover of net operating losses (“NOLs”), we expect that some of our NOLs will expire unused. Therefore, we recorded a partial release of the valuation allowance of $80 million in the second quarter of 2018. In addition, based upon the separation of Venator from our U.K. combined group and the increased and sustained profitability in our Polyurethanes business in the U.K., we released significant valuation allowances on certain net deferred tax assets in the U.K. Because the U.K. places limitations on the utilization of certain NOLs and limitations on other deferred tax assets, we recorded a partial valuation allowance release of $15 million in the second quarter of 2018. We also released $24 million of significant valuation allowances on certain net deferred tax assets in Luxembourg in the third quarter of 2018 as a result of changes in estimated future taxable income resulting from increased intercompany receivables and, therefore, increased income in Luxembourg, our primary treasury center outside of the U.S. We also had miscellaneous non-significant valuation allowance releases totaling $13 million in 2018. During 2017, we released valuation allowances of $22 million. In Italy, we released valuation allowances of $7 million on certain net deferred assets of our Polyurethanes business. On March 1, 2017 and April 1, 2017, we de-merged the Italian legal entities containing our Polyurethanes business from our combined Italian tax group. The historical and expected continued profitability of those Polyurethanes businesses resulted in the release of the associated valuation allowance. In Luxembourg, we released valuation allowances of $15 million as a result of changes in estimated future taxable income resulting from increased intercompany receivables and, therefore, increased income in Luxembourg, our primary treasury center outside of the U.S. During 2016, we established valuation allowances of $12 million and released valuation allowances of $19 million. In Italy we established $9 million of valuation allowances on certain net deferred tax assets as a result of the sale of our European surfactants business, and in China we established $3 million of valuation allowances as a result of the closure of our Qingdao, China plant. We released valuation allowances of $12 million in Spain as a result of cumulative profitability and $7 million in The Netherlands as a result of tax planning to utilize losses that would have otherwise expired. Uncertainties regarding expected future income in certain jurisdictions could affect the realization of deferred tax assets in those jurisdictions and result in additional valuation allowances in future periods, or, in the case of unexpected pre-tax earnings, the release of valuation allowances in future periods. The following is a summary of changes in the valuation allowance (dollars in millions): Huntsman Corporation 2018 2017 2016 Valuation allowance as of January 1 $ 424 $ 496 $ 526 Valuation allowance as of December 31 227 424 496 Net (increase) decrease 197 72 30 Foreign currency movements 3 11 (11) (Decrease) increase to deferred tax assets with no impact on operating tax expense, including an offsetting (decrease) increase to valuation allowances (15) (11) 19 Change in valuation allowance per rate reconciliation $ 185 $ 72 $ 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 $ 53 $ 50 $ 31 Releases of valuation allowances in various jurisdictions 132 22 19 Establishments of valuation allowances in various jurisdictions — — (12) Change in valuation allowance per rate reconciliation $ 185 $ 72 $ 38 Huntsman International 2018 2017 2016 Valuation allowance as of January 1 $ 424 $ 499 $ 530 Valuation allowance as of December 31 227 424 499 Net (increase) decrease 197 75 31 Foreign currency movements 3 11 (11) (Decrease) increase to deferred tax assets with no impact on operating tax expense, including an offsetting (decrease) increase to valuation allowances (15) (14) 19 Change in valuation allowance per rate reconciliation $ 185 $ 72 $ 39 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 $ 53 $ 49 $ 32 Releases of valuation allowances in various jurisdictions 132 23 19 Establishments of valuation allowances in various jurisdictions — — (12) Change in valuation allowance per rate reconciliation $ 185 $ 72 $ 39 The following is a reconciliation of our unrecognized tax benefits (dollars in millions): 2018 2017 Unrecognized tax benefits as of January 1 $ 23 $ 17 Gross increases and decreases—tax positions taken during a prior period 1 3 Gross increases and decreases—tax positions taken during the current period 3 4 Decreases related to settlements of amounts due to tax authorities — — Reductions resulting from the lapse of statutes of limitation — (2) Foreign currency movements (1) 1 Unrecognized tax benefits as of December 31 $ 26 $ 23 As of December 31, 2018 and 2017, the amount of unrecognized tax benefits which, if recognized, would affect the effective tax rate is $23 million and $19 million, respectively. During 2018 we concluded and settled tax examinations in various jurisdictions including but not limited to, Egypt and the U.S. (federal and various states). During 2017, we concluded and settled tax examinations in various jurisdictions, including, but not limited to, China and the U.S. (various states). During 2016, we concluded and settled tax examinations in various non-U.S. jurisdictions including, but not limited to, China, Germany, Indonesia, The Netherlands, Spain and the U.K. During 2018 for unrecognized tax benefits that impact tax expense, we recorded a net increase in unrecognized tax benefits with a corresponding income tax expenses (not including interest and penalty expense) of $5 million. During 2017, for unrecognized tax benefits that impact tax expense, we recorded a net increase in unrecognized tax benefits with a corresponding income tax expense (not including interest and penalty expense) of $9 million. During 2016, we recorded a net increase in unrecognized tax benefits with a corresponding income tax expense (not including interest and penalty expense) of $2 million. Additional decreases in unrecognized tax benefits were offset by cash settlements or by a decrease in net deferred tax assets and, therefore, did not affect income tax expense. In accordance with our accounting policy, we continue to recognize interest and penalties accrued related to unrecognized tax benefits in income tax expense. Year ended December 31, 2018 2017 2016 Interest expense included in tax expense $ — $ — $ 1 Penalties expense included in tax expense — — — December 31, 2018 2017 Accrued liability for interest $ 3 $ 3 Accrued liability for penalties — — We conduct business globally and, as a result, we file income tax returns in U.S. federal, various U.S. state and various non‑U.S. jurisdictions. The following table summarizes the tax years that remain subject to examination by major tax jurisdictions: Tax Jurisdiction Open Tax Years China 2009 and later Hong Kong 2015 and later Germany 2013 and later India 2004 and later Italy 2014 and later Mexico 2013 and later Switzerland 2011 and later Thailand 2012 and later The Netherlands 2015 and later United Kingdom 2017 and later United States federal 2017 and later Certain of our U.S. and non-U.S. income tax returns are currently under various stages of audit by applicable tax authorities and the amounts ultimately agreed upon in resolution of the issues raised may differ materially from the amounts accrued. We estimate that it is reasonably possible that certain of our non-U.S. unrecognized tax benefits could change within 12 months of the reporting date with a resulting decrease in the unrecognized tax benefits within a reasonably possible range of nil to $7 million. For the 12‑month period from the reporting date, we would expect that a substantial portion of the decrease in our unrecognized tax benefits would result in a corresponding benefit to our income tax expense. We have determined that our valuation allowance will not be impacted by the various aspects of the U.S. Tax Reform Act (e.g., deemed repatriation of deferred foreign income, GILTI inclusions, new categories of foreign tax credits), and therefore, we have made no related changes in any valuation allowance. Similarly, we have determined that our uncertain tax positions are not affected by the various aspects of the U.S Tax Reform Act (e.g., deemed repatriation of deferred foreign income, GILTI inclusions, new categories of foreign tax credits) and therefore, we have made no related recognition or change in any unrecognized tax positions. The U.S. Tax Reform Act includes a mandatory one-time tax on accumulated earnings of foreign subsidiaries, and as a result, all previously unremitted earnings for which no U.S. deferred tax liability had been accrued have now been subject to U.S. tax. For subsidiaries with local withholding taxes, we intend to continue to invest most of these earnings indefinitely within the local country and do not expect to incur any significant, additional taxes related to such amounts. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 19. COMMITMENTS AND CONTINGENCIES Purchase Commitments We have various purchase commitments extending through 2039 for materials, supplies and services entered into in the ordinary course of business. Included in the purchase commitments table below are contracts which require minimum volume purchases that extend beyond one year or are renewable annually and have been renewed for 2018. Certain contracts allow for changes in minimum required purchase volumes in the event of a temporary or permanent shutdown of a facility. To the extent the contract requires a minimum notice period, such notice period has been included in the table below. The contractual purchase prices for substantially all of these contracts are variable based upon market prices, subject to annual negotiations. We have estimated our contractual obligations by using the terms of our current pricing for each contract. We also have a limited number of contracts which require a minimum payment even if no volume is purchased. We believe that all of our purchase obligations will be utilized in our normal operations. We made minimum payments of nil, nil and $1 million for the years ended December 31, 2018, 2017 and 2016, respectively, under such take or pay contracts without taking the product. Total purchase commitments as of December 31, 2018 are as follows (dollars in millions): Year ending December 31, 2019 $ 1,424 2020 855 2021 666 2022 629 2023 414 Thereafter 1,794 $ 5,782 Operating Leases We lease certain railcars, aircraft, equipment and facilities under long-term lease agreements. The total expense recorded under operating lease agreements in our consolidated statements of operations is approximately $76 million, $80 million and $81 million for 2018, 2017 and 2016, respectively, net of sublease rentals of approximately $2 million each for the years ended December 31, 2018, 2017 and 2016. Future minimum lease payments under operating leases as of December 31, 2018 are as follows (dollars in millions): Year ending December 31, 2019 $ 59 2020 53 2021 52 2022 49 2023 45 Thereafter 234 $ 492 Legal Matters Indemnification Matter On July 14, 2014, Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC demanded that we indemnify them for claims brought against them by certain other former Company stockholders in litigation filed June 14, 2014 in the United States District Court for the Eastern District of Wisconsin (the “Wisconsin Litigation”). We denied the Banks’ indemnification demand for the Wisconsin Litigation and have made no accrual with respect to this matter. The stockholders in the Wisconsin Litigation made claims for misrepresentation and conspiracy to defraud in connection with the failed acquisition by and merger with Hexion and, additionally, have named Apollo Global Management LLC and Apollo Management Holdings, L.P. as defendants. On June 30, 2016, the plaintiffs voluntarily dismissed the Apollo defendants and on December 5, 2016, the court dismissed Deutsche Bank for lack of personal jurisdiction, but denied Credit Suisse's motion to dismiss. Subsequently, Credit Suisse asked the court to reconsider its decision or certify its judgment to the Seventh Circuit Court of Appeals for an immediate appeal, which remains pending. Subsequent to discovery, Credit Suisse filed a motion for summary judgment on August 25, 2017 and a decision is pending. The court has suspended the current scheduling order, including the trial date. Other Proceedings We are a party to various other proceedings instituted by private plaintiffs, governmental authorities and others arising under provisions of applicable laws, including various environmental, products liability and other laws. Except as otherwise disclosed in this report, we do not believe that the outcome of any of these matters will have a material effect on our financial condition, results of operations or liquidity. |
ENVIRONMENTAL, HEALTH AND SAFET
ENVIRONMENTAL, HEALTH AND SAFETY MATTERS | 12 Months Ended |
Dec. 31, 2018 | |
ENVIRONMENTAL, HEALTH AND SAFETY MATTERS | |
ENVIRONMENTAL, HEALTH AND SAFETY MATTERS | 20. ENVIRONMENTAL, HEALTH AND SAFETY MATTERS EHS Capital Expenditures We may incur future costs for capital improvements and general compliance under EHS laws, including costs to acquire, maintain and repair pollution control equipment. For the years ended December 31, 2018, 2017 and 2016, our capital expenditures for EHS matters totaled $44 million, $47 million and $55 million, respectively. Because capital expenditures for these matters are subject to evolving regulatory requirements and depend, in part, on the timing, promulgation and enforcement of specific requirements, our capital expenditures for EHS matters have varied significantly from year to year and we cannot provide assurance that our recent expenditures are indicative of future amounts we may spend related to EHS and other applicable laws. Environmental Reserves We have accrued liabilities relating to anticipated environmental cleanup obligations, site reclamation and closure costs and known penalties. Liabilities are recorded when potential liabilities are either known or considered probable and can be reasonably estimated. Our liability estimates are calculated using present value techniques as appropriate and are based upon requirements placed upon us by regulators, available facts, existing technology and past experience. The environmental liabilities do not include amounts recorded as asset retirement obligations. We had accrued $7 million and $21 million for environmental liabilities as of December 31, 2018 and 2017, respectively. Of these amounts, $2 million and $6 million were classified as accrued liabilities in our consolidated balance sheets as of December 31, 2018 and 2017, respectively, and $5 million and $15 million were classified as other noncurrent liabilities in our consolidated balance sheets as of December 31, 2018 and 2017, respectively. In certain cases, our remediation liabilities may be payable over periods of up to 30 years. We may incur losses for environmental remediation in excess of the amounts accrued; however, we are not able to estimate the amount or range of such potential excess. Environmental Matters Under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) and similar state laws, a current or former owner or operator of real property in the U.S. may be liable for remediation costs regardless of whether the release or disposal of hazardous substances was in compliance with law at the time it occurred, and a current owner or operator may be liable regardless of whether it owned or operated the facility at the time of the release. Outside the U.S., analogous contaminated property laws, such as those in effect in France and Australia, can hold past owners and/or operators liable for remediation at former facilities. Currently, there are approximately six former facilities or third‑party sites in the U.S. for which we have been notified of potential claims against us for cleanup liabilities, including, but not limited to, sites listed under CERCLA. Based on current information and past experiences at other CERCLA sites, we do not expect these third‑party claims to have a material impact on our consolidated financial statements. Under the Resource Conservation and Recovery Act (“RCRA”) in the U.S. and similar state laws, we may be required to remediate contamination originating from our properties as a condition to our hazardous waste permit. Some of our manufacturing sites have an extended history of industrial chemical manufacturing and use, including on-site waste disposal. We are aware of soil, groundwater or surface contamination from past operations at some of our sites, and we may find contamination at other sites in the future. For example, our Port Neches, Texas, and Geismar, Louisiana, facilities are the subject of ongoing remediation requirements imposed under RCRA. Similar laws exist in a number of locations in which we currently operate, or previously operated, manufacturing facilities, such as Australia, India, France, Hungary and Italy. North Maybe Mine Remediation The North Maybe Canyon Mine site is a CERCLA site and involves a former phosphorous mine near Soda Springs, Idaho, which is believed to have been operated by several companies, including a predecessor company to us. In 2004, the U.S. Forest Service notified us that we are a CERCLA potentially responsible party (“PRP”) for contamination originating from the site. In February 2010, we and Wells Cargo (another PRP) agreed to conduct a Remedial Investigation/Feasibility Study of a portion of the site and are currently engaged in that process. At this time, we are unable to reasonably estimate our potential liabilities at this site. |
HUNTSMAN CORPORATION STOCKHOLDE
HUNTSMAN CORPORATION STOCKHOLDERS’ EQUITY | 12 Months Ended |
Dec. 31, 2018 | |
HUNTSMAN CORPORATION STOCKHOLDERS’ EQUITY | |
HUNTSMAN CORPORATION STOCKHOLDERS’ EQUITY | 21. HUNTSMAN CORPORATION STOCKHOLDERS’ EQUITY Share Repurchase Program On September 29, 2015, our Board of Directors authorized our Company to repurchase up to $150 million in shares of our common stock. Repurchases under this program may be made through open market transactions, in privately negotiated transactions, accelerated share repurchase programs or by other means. The timing and actual number of any shares repurchased depends on a variety of factors, including market conditions. The share repurchase authorization does not have an expiration date and repurchases may be commenced, suspended or discontinued from time to time without prior notice. On October 27, 2015, we entered into and funded an accelerated share repurchase agreement with Citibank, N.A. to repurchase $100 million of our common stock. Citibank, N.A. made an initial delivery of approximately 7.1 million shares of Huntsman Corporation common stock based on the closing price of $11.94 on October 27, 2015. The accelerated share repurchase agreement was completed in January 2016 with the delivery of an additional approximately 1.5 million shares of Huntsman Corporation common stock. On February 7, 2018 and on May 3, 2018, our Board of Directors authorized us to repurchase up to an additional $950 million in shares of our common stock in addition to the $50 million remaining under our September 2015 share repurchase authorization. The share repurchase program will be supported by our free cash flow generation and by the monetization of Venator shares. Repurchases may be made through the open market, including through accelerated share repurchase programs, or in privately negotiated transactions, and repurchases may be commenced or suspended from time to time without prior notice. Shares of common stock acquired through the repurchase program are held in treasury at cost. During the year ended December 31, 2018, we repurchased 10,405,457 shares of our common stock for approximately $276 million, excluding commissions, under the repurchase program. From January 1, 2019 through January 31, 2019, we repurchased an additional 537,018 shares of our common stock for approximately $11 million, excluding commissions. Dividends on Common Stock The following tables represent dividends on common stock for our Company for the years ended December 31, 2018 and 2017 (dollars in millions, except per share payment amounts): 2018 Approximate Per share amount Quarter ended payment amount paid March 31, 2018 $ 0.1625 $ 39 June 30, 2018 0.1625 39 September 30, 2018 0.1625 39 December 31, 2018 0.1625 39 2017 Approximate Per share amount Quarter ended payment amount paid March 31, 2017 $ 0.125 $ 30 June 30, 2017 0.125 30 September 30, 2017 0.125 30 December 31, 2017 0.125 30 On February 7, 2018, the Board of Directors approved an increase to the quarterly cash dividend to $0.1625 per share of common stock beginning with the March 30, 2018 quarterly dividend. |
STOCK-BASED COMPENSATION PLAN
STOCK-BASED COMPENSATION PLAN | 12 Months Ended |
Dec. 31, 2018 | |
STOCK-BASED COMPENSATION PLAN | |
STOCK-BASED COMPENSATION PLAN | 22. STOCK‑BASED COMPENSATION PLAN Under the 2016 Stock Incentive Plan, we may grant nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, phantom stock, performance share units and other stock-based awards to our employees, directors and consultants and to employees and consultants of our subsidiaries, provided that incentive stock options may be granted solely to employees. The terms of the grants under both the 2016 Stock Incentive Plan and the Prior Plan are fixed at the grant date. Initially, there were approximately 8.2 million shares available for issuance under the 2016 Stock Incentive Plan. However, the number of shares available for issuance may be adjusted to include any shares surrendered, exchanged, forfeited or settled in cash pursuant to the Prior Plan. As of December 31, 2018, we had approximately 9.5 million shares remaining under the 2016 Stock Incentive Plan available for grant. Option awards have a maximum contractual term of 10 years and generally must have an exercise price at least equal to the market price of our common stock on the date the option award is granted. Outstanding stock-based awards generally vest over a three‑year period. The compensation cost under the 2016 Stock Incentive Plan and the Prior Plan for our Company and Huntsman International were as follows (dollars in millions): Year ended December 31, 2018 2017 2016 Huntsman Corporation compensation cost $ 27 $ 36 $ 32 Huntsman International compensation cost 26 35 31 The total income tax benefit recognized in the statement of operations for stock-based compensation arrangements was $18 million, $18 million and $7 million for the years ended December 31, 2018, 2017 and 2016, respectively. Stock Options The fair value of each stock option award is estimated on the date of grant using the Black-Scholes valuation model that uses the assumptions noted in the following table. Expected volatilities are based on the historical volatility of our common stock through the grant date. The expected term of options granted was estimated based on the contractual term of the instruments and employees’ expected exercise and post‑vesting employment termination behavior. The risk‑free rate for periods within the contractual life of the option was based on the U.S. Treasury yield curve in effect at the time of grant. The assumptions noted below represent the weighted averages of the assumptions utilized for all stock options granted during the year. Year ended December 31, 2018 2017 2016 Dividend yield 1.6 % 2.4 % 5.6 % Expected volatility 55.2 % 56.9 % 57.9 % Risk-free interest rate 2.6 % 2.0 % 1.4 % Expected life of stock options granted during the period 5.9 years 5.9 years 5.9 years A summary of stock option activity under the 2016 Stock Incentive Plan and the Prior Plan as of December 31, 2018 and changes during the year then ended is presented below: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Option Awards Shares Price Term Value (in thousands) (years) (in millions) Outstanding at January 1, 2018 7,988 $ 13.99 Granted 509 32.51 Exercised (3,873) 11.85 Forfeited (79) 18.70 Outstanding at December 31, 2018 4,545 17.81 6.5 $ 18 Exercisable at December 31, 2018 2,816 17.02 5.6 10 The weighted‑average grant‑date fair value of stock options granted during 2018, 2017 and 2016 was $15.20, $9.26 and $3.15 per option, respectively. As of December 31, 2018, there was $8 million of total unrecognized compensation cost related to nonvested stock option arrangements granted under the 2016 Stock Incentive Plan and the Prior Plan. That cost is expected to be recognized over a weighted-average period of approximately 1.8 years. During the years ended December 31, 2018, 2017 and 2016, the total intrinsic value of stock options exercised was approximately $78 million, $48 million and $1 million, respectively. Cash received from stock options exercised during the years ended December 31, 2018, 2017 and 2016 was approximately $17 million, $35 million and $1 million, respectively. The cash tax benefit from stock options exercised during the years ended December 31, 2018, 2017 and 2016 was approximately $17 million, $15 million, and nil, respectively. Nonvested Shares Nonvested shares granted under the 2016 Stock Incentive Plan and the Prior Plan consist of restricted stock and performance share unit awards, which are accounted for as equity awards, and phantom stock, which is accounted for as a liability award because it can be settled in either stock or cash. The fair value of each performance share unit award is estimated using a Monte Carlo simulation model that uses various assumptions, including an expected volatility rate and a risk-free interest rate. For the years ended December 31, 2018, 2017 and 2016, the weighted-average expected volatility rate was 44.3%. 45.0% and 39.3%, respectively, and the weighted average risk-free interest rate was 2.3%, 1.5% and 0.9%, respectively. For the performance share unit awards granted during the years ended December 31, 2018, 2017 and 2016, the number of shares earned varies based upon the Company achieving certain performance criteria over a three-year performance period. The performance criteria are total stockholder return of our common stock relative to the total stockholder return of a specified industry peer group for the three-year performance periods. A summary of the status of our nonvested shares as of December 31, 2018 and changes during the year then ended is presented below: Equity Awards Liability Awards Weighted Weighted Average Average Grant-Date Grant-Date Shares Fair Value Shares Fair Value (in thousands) (in thousands) Nonvested at January 1, 2018 2,457 $ 14.93 696 $ 14.69 Granted 435 35.04 169 32.77 Vested (840) (1) 15.67 (337) 14.70 Forfeited (129) 16.22 (24) 16.66 Nonvested at December 31, 2018 1,923 19.08 504 20.66 (1) As of December 31, 2018, a total of 358,609 restricted stock units were vested but not yet issued, of which 15,922 vested during 2018. These shares have not been reflected as vested shares in this table because, in accordance with the restricted stock unit agreements, shares of common stock are not issued for vested restricted stock units until termination of employment. As of December 31, 2018, there was $19 million of total unrecognized compensation cost related to nonvested share compensation arrangements granted under the Stock Incentive Plan and the Prior Plan. That cost is expected to be recognized over a weighted-average period of approximately 1.7 years. The value of share awards that vested during the years ended December 31, 2018, 2017 and 2016 was $24 million, $22 million and $16 million, respectively. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 31, 2018 | |
REVENUE RECOGNITION | |
REVENUE RECOGNITION | 23. REVENUE RECOGNITION We generate substantially all of our revenues through sales in the open market and long‑term supply agreements. We recognize revenue when control of the promised goods is transferred to our customers. Control of goods usually passes to the customer at the time shipment is made. Revenue is measured as the amount that reflects the consideration that we expect to be entitled to in exchange for those goods. Sales, value add, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Incidental items that are immaterial in the context of the contract are recognized as expense. We have elected to account for all shipping and handling activities as fulfillment costs. We have also elected to expense commissions when incurred as the amortization period of the commission asset that we would have otherwise recognized is less than one year. The following table disaggregates our revenue by major source for the year ended December 31, 2018 (dollars in millions): Polyurethanes Performance Products Advanced Materials Textile Effects Eliminations Total Primary Geographic Markets(1) U.S. and Canada $ 1,700 $ 1,305 285 $ 68 $ 31 $ 3,389 Europe 1,278 423 445 135 (17) 2,264 Asia Pacific 1,236 432 301 485 (23) 2,431 Rest of world 880 195 85 136 (1) 1,295 $ 5,094 $ 2,355 $ 1,116 $ 824 $ (10) $ 9,379 Major Product Groupings MDI urethanes $ 4,525 $ 4,525 MTBE 569 569 Differentiated $ 2,120 2,120 Upstream 235 235 Specialty $ 932 932 Non-specialty 184 184 Textile chemicals and dyes and digital inks $ 824 824 Eliminations $ (10) (10) $ 5,094 $ 2,355 $ 1,116 $ 824 $ (10) $ 9,379 (a) Geographic information for revenues is based upon countries into which product is sold. Substantially all of our revenue is generated through product sales in which revenue is recognized at a point in time. At contract inception, we assess the goods and services, if any, promised in our contracts and identify a performance obligation for each promise to transfer to the customer a good or service that is distinct. In substantially all cases, a contract has a single performance obligation to deliver a promised good to the customer. Revenue is recognized when control of the product is transferred to the customer (i.e., when our performance obligation is satisfied), which typically occurs at shipment. Further, in determining whether control has transferred, we consider if there is a present right to payment and legal title, along with risks and rewards of ownership having transferred to the customer. The amount of consideration we receive and revenue we recognize is based upon the terms stated in the sales contract, which may contain variable consideration such as discounts or rebates. We allocate the transaction price to each distinct product based on their relative standalone selling price. The product price as specified on the purchase order or in the sales contract is considered the standalone selling price as it is an observable input that depicts the price as if sold to a similar customer in similar circumstances. In order to estimate the applicable variable consideration, we use historical and current trend information to estimate the amount of discounts or rebates to which customers are likely to be entitled. Historically, actual discount or rebate adjustments relative to those estimated and included when determining the transaction price have not materially differed. Payment terms vary but are generally less than one year. As our standard payment terms are less than one year, we have elected to not assess whether a contract has a significant financing component. In the normal course of business, we do not accept product returns unless the item is defective as manufactured. We establish provisions for estimated returns based on an analysis of historical experience. |
OTHER COMPREHENSIVE INCOME (LOS
OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER COMPREHENSIVE INCOME (LOSS) | |
OTHER COMPREHENSIVE INCOME (LOSS) | 24. OTHER COMPREHENSIVE INCOME (LOSS) Other comprehensive loss consisted of the following (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(a) adjustments(b) affiliates Other, net Total interests Corporation Beginning balance, January 1, 2018 $ (249) $ (1,189) $ 3 $ 24 $ (1,411) $ 143 $ (1,268) Cumulative effect of changes in fair value of equity investments — — — (10) (10) — (10) Revised beginning balance, January 1, 2018 (249) (1,189) 3 14 (1,421) 143 (1,278) Other comprehensive (loss) income before reclassifications, gross (186) (130) — — (316) 47 (269) Tax (expense) benefit (6) 27 — (3) 18 — 18 Amounts reclassified from accumulated other comprehensive loss, gross(c) — 77 — — 77 — 77 Tax expense — (13) — (6) (19) — (19) Net current-period other comprehensive (loss) income (192) (39) — (9) (240) 47 (193) Disposition of a portion of Venator — — — — — (5) (5) Deconsolidation of Venator 70 285 5 — 360 (149) 211 Tax expense — (51) — — (51) — (51) Ending balance, December 31, 2018 $ (371) $ (994) $ 8 $ 5 $ (1,352) $ 36 $ (1,316) (a) Amounts are net of tax of $71 and $65 as of December 31, 2018 and January 1, 2018, respectively. (b) Amounts are net of tax of $135 and $172 as of December 31, 2018 and January 1, 2018, respectively. (c) 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(a) adjustments(b) affiliates Other, net Total interests Corporation Beginning balance, January 1, 2017 $ (459) $ (1,275) $ 4 $ 23 $ (1,707) $ 36 $ (1,671) Other comprehensive income (loss) before reclassifications, gross 175 11 (1) 9 194 (22) 172 Tax benefit 35 9 — 2 46 — 46 Amounts reclassified from accumulated other comprehensive loss, gross(c) — 80 — (10) 70 — 70 Tax expense — (14) — — (14) — (14) Net current-period other comprehensive income (loss) 210 86 (1) 1 296 (22) 274 Disposition of a portion of Venator — — — — — 129 129 Ending balance, December 31, 2017 $ (249) $ (1,189) $ 3 $ 24 $ (1,411) $ 143 $ (1,268) (a) Amounts are net of tax of $65 and $100 as of December 31, 2017 and January 1, 2017, respectively. (b) Amounts are net of tax of $172 and $177 as of December 31, 2017 and January 1, 2017, respectively. (c) See table below for details about these reclassifications. Year ended December 31, 2018 2017 2016 Amounts reclassified Amounts reclassified Amounts reclassified Affected line item in from accumulated from accumulated from accumulated the statement Details about Accumulated Other other other other where net income Comprehensive Loss Components(a): comprehensive loss comprehensive loss comprehensive loss is presented Amortization of pension and other postretirement benefits: Prior service credit $ (12) $ (15) $ (16) (b) Settlement loss 2 — — (b) Actuarial loss 87 95 69 (b)(c) 77 80 53 Total before tax (13) (14) (15) Income tax expense Total reclassifications for the period $ 64 $ 66 $ 38 Net of tax (a) (b) (c) Huntsman International Foreign Pension Other Other, net Total Amounts Amounts Beginning balance, January 1, 2018 $ (252) $ (1,174) $ 3 $ 17 $ (1,406) $ 143 $ (1,263) Cumulative effect of changes in fair value of equity investments — — — (10) (10) — (10) Revised beginning balance, January 1, 2018 (252) (1,174) 3 7 (1,416) 143 (1,273) Other comprehensive (loss) income before reclassifications, gross (188) (130) — — (318) 47 (271) Tax (expense) benefit (6) 27 — (1) 20 — 20 Amounts reclassified from accumulated other comprehensive loss, gross(c) — 80 — — 80 — 80 Tax expense — (14) — (5) (19) — (19) Net current-period other comprehensive (loss) income (194) (37) — (6) (237) 47 (190) Disposition of a portion of Venator — — — — — (5) (5) Deconsolidation of Venator 70 285 5 — 360 (149) 211 Tax expense — (51) — — (51) — (51) Ending balance, December 31, 2018 $ (376) $ (977) $ 8 $ 1 $ (1,344) $ 36 $ (1,308) (a) Amounts are net of tax of $57 and $51 as of December 31, 2018 and January 1, 2018, respectively. (b) Amounts are net of tax of $161 and $199 as of December 31, 2018 and January 1, 2018, respectively. (c) See table below for details about these reclassifications. Foreign Pension Other Other, net Total Amounts Amounts Beginning balance, January 1, 2017 $ (462) $ (1,286) $ 4 $ 17 $ (1,727) $ 36 $ (1,691) Other comprehensive income before reclassifications, gross 175 12 (1) 8 194 (22) 172 Tax benefit (expense) 35 9 — 2 46 — 46 Amounts reclassified from accumulated other comprehensive loss, gross(c) — 86 — (10) 76 — 76 Contribution of other comprehensive income from Parent — 20 — — 20 — 20 Tax expense — (15) — — (15) — (15) Net current-period other comprehensive income (loss) 210 112 (1) — 321 (22) 299 Disposition of a portion of Venator — — — — — 129 129 Ending balance, December 31, 2017 $ (252) $ (1,174) $ 3 $ 17 $ (1,406) $ 143 $ (1,263) (a) Amounts are net of tax of $51 and $86 as of December 31, 2017 and January 1, 2017, respectively. (b) Amounts are net of tax of $199 and $205 as of December 31, 2017 and January 1, 2017, respectively. (c) See table below for details about these reclassifications. Year ended December 31, 2018 2017 2016 Amounts reclassified Amounts reclassified Amounts reclassified Affected line item in from accumulated from accumulated from accumulated the statement Details about Accumulated Other other other other where net income Comprehensive Loss Components(a): comprehensive loss comprehensive loss comprehensive loss is presented Amortization of pension and other postretirement benefits: Prior service credit $ (12) $ (15) $ (16) (b) Settlement loss 2 — — (b) Actuarial loss 90 101 77 (b)(c) 80 86 61 Total before tax (14) (15) (16) Income tax expense Total reclassifications for the period $ 66 $ 71 $ 45 Net of tax (a) Pension and other postretirement benefits amounts in parentheses indicate credits on our consolidated statements of operations. (b) These accumulated other comprehensive loss components are included in the computation of net periodic pension costs. See “Note 17. Employee Benefit Plans.” (c) Amounts contain approximately $16 million and $24 million and $18 million of prior service credit and actuarial loss related to discontinued operations for the years ended December 31, 2018, 2017 and 2016, respectively. 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. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 25. RELATED PARTY TRANSACTIONS Our consolidated financial statements include the following transactions with our affiliates not otherwise disclosed (dollars in millions): Year ended December 31, 2018 2017 2016 Sales to: Unconsolidated affiliates $ 159 $ 150 $ 131 Inventory purchases from: Unconsolidated affiliates 417 280 243 |
OPERATING SEGMENT INFORMATION
OPERATING SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
OPERATING SEGMENT INFORMATION | |
OPERATING SEGMENT INFORMATION | 26. OPERATING SEGMENT INFORMATION We derive our revenues, earnings and cash flows from the manufacture and sale of a wide variety of differentiated and commodity chemical products. We have four operating segments, which are also our reportable segments: Polyurethanes, Performance Products, Advanced Materials and Textile Effects. We have organized our business and derived our operating segments around differences in product lines. In connection with the Venator IPO in August 2017, we separated Venator and, beginning in the third quarter of 2017, we reported the results of operations of Venator as discontinued operations in our consolidated financial statements. On December 3, 2018, we further reduced our remaining investment in Venator by the sale of Venator ordinary shares which allowed us to deconsolidate Venator. See “Note 4. Discontinued Operations and Business Dispositions—Separation and Deconsolidation of Venator.” The major products of each reportable operating segment are as follows: Segment Products Polyurethanes MDI, PO, polyols, PG, TPU, aniline and MTBE Performance Products Amines, surfactants, LAB, maleic anhydride, other performance chemicals, EG, olefins and technology licenses Advanced Materials Basic liquid and solid epoxy resins; specialty resin compounds; cross-linking, matting and curing agents; epoxy, acrylic and polyurethane-based formulations Textile Effects Textile chemicals, dyes and digital inks Sales between segments are generally recognized at external market prices and are eliminated in consolidation. We use adjusted EBITDA to measure the financial performance of our global business units and for reporting the results of our operating segments. This measure includes all operating items relating to the businesses. The adjusted EBITDA of operating segments excludes items that principally apply to our Company as a whole. The revenues and adjusted EBITDA for each of our reportable operating segments are as follows (dollars in millions): Year ended December 31, 2018 2017 2016 Revenues: Polyurethanes $ 5,094 $ 4,399 $ 3,667 Performance Products 2,355 2,109 2,126 Advanced Materials 1,116 1,040 1,020 Textile Effects 824 776 751 Corporate and eliminations (10) 34 (46) Total $ 9,379 $ 8,358 $ 7,518 Huntsman Corporation: Segment adjusted EBITDA(1): Polyurethanes $ 946 $ 850 $ 569 Performance Products 367 296 316 Advanced Materials 225 219 223 Textile Effects 101 83 73 Corporate and other(2) (170) (189) (184) Total 1,469 1,259 997 Reconciliation of adjusted EBITDA to net income: Interest expense—continuing operations (115) (165) (203) Interest (expense) income—discontinued operations (36) (19) 1 Income tax expense—continuing operations (97) (64) (109) Income tax (expense) benefit—discontinued operations (34) (67) 24 Depreciation and amortization—continuing operations (343) (319) (318) Depreciation and amortization—discontinued operations — (68) (114) Net income attributable to noncontrolling interests 313 105 31 Other adjustments: Business acquisition and integration expenses (5) (19) (12) Purchase accounting inventory adjustments (4) — — Merger costs (2) (28) — EBITDA from discontinued operations (125) 312 81 Noncontrolling interest of discontinued operations (232) (49) (11) Fair value adjustments to Venator investment (62) — — Loss on early extinguishment of debt (3) (54) (3) Certain legal settlements and related (expenses) income (6) 11 (1) Gain on sale of assets — 9 97 Amortization of pension and postretirement actuarial losses (71) (73) (55) Plant incident remediation costs (1) (16) — U.S. Tax Reform Act impact on noncontrolling interest — 6 — Restructuring, impairment and plant closing and transition credits (costs) 4 (20) (48) Net income $ 650 $ 741 $ 357 Year ended December 31, 2018 2017 2016 Depreciation and Amortization: Polyurethanes $ 129 $ 116 $ 114 Performance Products 145 137 132 Advanced Materials 37 33 35 Textile Effects 16 14 15 Corporate and other 16 19 22 Total $ 343 $ 319 $ 318 Year ended December 31, 2018 2017 2016 Capital Expenditures: Polyurethanes $ 163 $ 162 $ 143 Performance Products 100 79 131 Advanced Materials 20 21 16 Textile Effects 20 16 19 Corporate and other 10 4 9 Total $ 313 $ 282 $ 318 December 31, 2018 2017 2016 Total Assets: Polyurethanes $ 3,427 $ 3,112 $ 2,677 Performance Products 2,088 2,069 2,046 Advanced Materials 796 796 728 Textile Effects 571 564 523 Corporate and other 1,071 823 975 Total $ 7,953 $ 7,364 $ 6,949 Year ended December 31, Huntsman International: 2018 2017 2016 Segment adjusted EBITDA(1): Polyurethanes $ 946 $ 850 $ 569 Performance Products 367 296 316 Advanced Materials 225 219 223 Textile Effects 101 83 73 Corporate and other(2) (166) (185) (180) Total 1,473 1,263 1,001 Reconciliation of adjusted EBITDA to net income: Interest expense—continuing operations (136) (181) (215) Interest (expense) income—discontinued operations (36) (19) 1 Income tax expense—continuing operations (93) (61) (108) Income tax (expense) benefit—discontinued operations (34) (67) 24 Depreciation and amortization—continuing operations (340) (311) (306) Depreciation and amortization—discontinued operations — (68) (114) Net income attributable to noncontrolling interests 313 105 31 Other adjustments: Business acquisition and integration expenses (5) (19) (12) Purchase accounting inventory adjustments (4) — — Merger costs (2) (28) — EBITDA from discontinued operations (125) 309 76 Noncontrolling interest of discontinued operations (232) (49) (11) Fair value adjustments to Venator investment (62) — — Loss on early extinguishment of debt (3) (54) (3) Certain legal settlements and related (expenses) income (6) 11 (1) Gain on sale of assets — 9 97 Amortization of pension and postretirement actuarial losses (75) (76) (58) Plant incident remediation costs (1) (16) — U.S. Tax Reform Act impact on noncontrolling interest — 6 — Restructuring, impairment and plant closing and transition credits (costs) 4 (20) (48) Net income $ 636 $ 734 $ 354 December 31, 2018 2017 2016 Depreciation and Amortization: Polyurethanes $ 129 $ 116 $ 114 Performance Products 145 137 132 Advanced Materials 37 33 35 Textile Effects 16 14 15 Corporate and other 13 11 10 Total $ 340 $ 311 $ 306 December 31, 2018 2017 2016 Capital Expenditures: Polyurethanes $ 163 $ 162 $ 143 Performance Products 100 79 131 Advanced Materials 20 21 16 Textile Effects 20 16 19 Corporate and other 10 4 9 Total $ 313 $ 282 $ 318 December 31, 2018 2017 2016 Total Assets: Polyurethanes $ 3,427 $ 3,109 $ 2,665 Performance Products 2,088 2,069 2,045 Advanced Materials 796 796 728 Textile Effects 571 564 523 Corporate and other 1,453 1,167 1,274 Total $ 8,335 $ 7,705 $ 7,235 (1) We use segment adjusted EBITDA as the measure of each segment’s profit or loss. We believe that segment adjusted EBITDA more accurately reflects what management uses to make decisions about resources to be allocated to the segments and assess their financial performance. Segment adjusted EBITDA is defined as net income of Huntsman Corporation or Huntsman International, as appropriate, before interest, income tax, depreciation and amortization, net income attributable to noncontrolling interests and certain Corporate and other items, as well as eliminating the following adjustments: (a) business acquisition and integration expenses; (b) merger costs; (c) EBITDA from discontinued operations; (d) noncontrolling interest of discontinued operations; (e) fair value adjustments to Venator investment; (f) loss on early extinguishment of debt; (g) certain legal settlements and related income (expenses); (h) gain (loss) on sale of assets; (i) amortization of pension and postretirement actuarial losses; (j) plant incident remediation costs; (k) U.S. Tax Reform Act impact on noncontrolling interest; and (l) restructuring, impairment, plant closing and transition credits (costs). (2) Corporate and other includes unallocated corporate overhead, unallocated foreign exchange gains and losses, LIFO inventory valuation reserve adjustments, nonoperating income and expense, benzene sales and gains and losses on the disposition of corporate assets. Year ended December 31, 2018 2017 2016 Revenues by geographic area(1): United States $ 3,160 $ 2,729 $ 2,514 China 1,281 1,147 908 Mexico 587 481 433 Germany 537 508 466 Other nations 3,814 3,493 3,197 Total $ 9,379 $ 8,358 $ 7,518 December 31, 2018 2017 2016 Long-lived assets(2): Huntsman Corporation United States $ 1,637 $ 1,597 $ 1,570 The Netherlands 331 343 294 China 247 268 235 Saudi Arabia 161 172 185 Germany 143 163 136 Switzerland 108 112 110 Singapore 96 100 110 Other nations 341 343 394 Total $ 3,064 $ 3,098 $ 3,034 Huntsman International United States $ 1,637 $ 1,594 $ 1,548 The Netherlands 331 343 294 China 247 268 235 Saudi Arabia 161 172 185 Germany 143 163 136 Switzerland 108 112 110 Singapore 96 100 110 Other nations 341 343 394 Total $ 3,064 $ 3,095 $ 3,012 (1) Geographic information for revenues is based upon countries into which product is sold. (2) Long‑lived assets consist of property, plant and equipment, net. |
SELECTED UNAUDITED QUARTERLY FI
SELECTED UNAUDITED QUARTERLY FINANCIAL DATA | 12 Months Ended |
Dec. 31, 2018 | |
SELECTED UNAUDITED QUARTERLY FINANCIAL DATA | |
SELECTED UNAUDITED QUARTERLY FINANCIAL DATA | 27. SELECTED UNAUDITED QUARTERLY FINANCIAL DATA A summary of selected unaudited quarterly financial data for the years ended December 31, 2018 and 2017 is as follows (dollars in millions, except per share amounts): Huntsman Corporation Three months ended March 31, June 30, September 30, December 31, 2018 2018 2018(1) 2018(2) Revenues $ 2,295 $ 2,404 $ 2,444 $ 2,236 Gross profit 540 555 524 406 Restructuring, impairment and plant closing costs (credits) 2 1 5 (13) Income from continuing operations 236 289 229 91 Net income (loss) 350 623 (8) (315) Net income attributable to noncontrolling interests(3) 76 209 3 25 Net income (loss) attributable to Huntsman Corporation 274 414 (11) (340) Basic income (loss) per share(4): Income from continuing operations attributable to Huntsman Corporation common stockholders 0.66 1.12 0.86 0.32 Net income (loss) attributable to Huntsman Corporation common stockholders 1.14 1.73 (0.05) (1.45) Diluted income (loss) per share(4): Income from continuing operations attributable to Huntsman Corporation common stockholders 0.65 1.11 0.85 0.32 Net income (loss) attributable to Huntsman Corporation common stockholders 1.11 1.71 (0.05) (1.43) Three months ended March 31, June 30, September 30, December 31, 2017 2017 2017 2017(5) Revenues $ 1,932 $ 2,054 $ 2,169 $ 2,203 Gross profit 390 436 472 508 Restructuring, impairment and plant closing costs 9 3 1 7 Income from continuing operations 99 138 116 230 Net income 92 183 179 287 Net income attributable to noncontrolling interests(3) 16 16 32 41 Net income attributable to Huntsman Corporation 76 167 147 246 Basic income per share(4): Income from continuing operations attributable to Huntsman Corporation common stockholders 0.35 0.51 0.36 0.79 Net income attributable to Huntsman Corporation common stockholders 0.32 0.70 0.62 1.03 Diluted income per share(4): Income from continuing operations attributable to Huntsman Corporation common stockholders 0.34 0.50 0.34 0.77 Net income attributable to Huntsman Corporation common stockholders 0.31 0.69 0.60 1.00 Huntsman International Three months ended March 31, June 30, September 30, December 31, 2018 2018 2018(1) 2018(2) Revenues $ 2,295 $ 2,404 2,444 $ 2,236 Gross profit 541 556 525 406 Restructuring, impairment and plant closing costs 2 1 5 (13) Income from continuing operations 233 286 226 86 Net income (loss) 347 620 (11) (320) Net income attributable to noncontrolling interests(3) 76 209 3 25 Net income (loss) attributable to Huntsman International 271 411 (14) (345) Three months ended March 31, June 30, September 30, December 31, 2017 2017 2017 2017(5) Revenues $ 1,932 $ 2,054 $ 2,169 $ 2,203 Gross profit 392 437 474 509 Restructuring, impairment and plant closing costs (credits) 9 3 1 7 Income from continuing operations 98 139 115 227 Net income 91 182 177 284 Net income attributable to noncontrolling interests(3) 16 16 32 41 Net income attributable to Huntsman International 75 166 145 243 (1) During the third quarter of 2018, we recognized a net after tax valuation allowance of $270 million to adjust the carrying amount of the assets and liabilities held for sale and the amount of accumulated comprehensive income recorded in equity related to Venator to the lower of cost or estimated fair value, less cost to sell. This loss was recorded in discontinued operations on our consolidated statements of operations. For more information see “Note 4. Discontinued Operations and Dispositions – Separation and Deconsolidation of Venator.” (2) In connection with the deconsolidation of Venator, we recorded a pretax loss of $427 million during the fourth quarter of 2018 to record our remaining ownership interest in Venator at fair value. This loss was recorded in discontinued operations on our consolidated statements of operations. We elected the fair value option to account for our equity method investment in Venator post deconsolidation. Accordingly, at December 31, 2018, we recorded a pretax loss of $57 million to record our equity method investment in Venator at fair value. This loss was recorded in “Fair value adjustments to Venator investment” on our consolidated statements of operations. Furthermore, in connection with the December 3, 2018 sale of Venator shares to Bank of America N.A., we recorded a forward swap. During December 2018, we recorded a loss of $5 million in “Fair value adjustments to Venator investment” on our consolidated statements of operations to record the forward swap at fair value. For more information, see “Note 4. Discontinued Operations and Dispositions – Separation and Deconsolidation of Venator.” (3) In connection with the Venator IPO in August 2017, we separated the P&A Business and, beginning in the third quarter of 2017, we reported the results of operations of Venator as discontinued operations on our consolidated financial statements. On December 3, 2018, we further reduced our investment in Venator by the sale of Venator ordinary shares which allowed us to deconsolidate Venator (4) Basic and diluted income per share are computed independently for each of the quarters presented based on the weighted average number of common shares outstanding during that period. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. (5) On December 22, 2017, the U.S. enacted the U.S. Tax Reform Act. During the fourth quarter of 2017, we and Huntsman International recorded the impact of the U.S. Tax Reform Act which resulted in a net $52 million and $53 million, respectively, income tax benefit. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2018 | |
Schedule I - Condensed Financial Information of Registrant | |
Schedule I - Condensed Financial Information of Registrant | HUNTSMAN CORPORATION (PARENT ONLY) Schedule I—Condensed Financial Information of Registrant HUNTSMAN CORPORATION (Parent Only) BALANCE SHEETS (In Millions, Except Share and Per Share Amounts) December 31, 2018 2017 ASSETS Cash and cash equivalents $ — $ 2 Prepaid assets 1 1 Receivable from affiliate 72 54 Note receivable from affiliate 100 100 Total current assets 173 157 Note receivable from affiliate-noncurrent 488 742 Investment in and advances to affiliates 2,251 2,082 Total assets $ 2,912 $ 2,981 LIABILITIES AND STOCKHOLDERS’ EQUITY Payable to affiliate $ 381 $ 346 Accrued liabilities 3 3 Total current liabilities 384 349 Other noncurrent liabilities 8 12 Total liabilities 392 361 STOCKHOLDERS’ EQUITY Common stock $0.01 par value, 1,200,000,000 shares authorized, 256,006,849 and 252,759,715 shares issued and 232,994,172 and 240,213,606 shares outstanding, respectively 3 3 Additional paid-in capital 3,984 3,889 Treasury stock, 23,012,680 and 12,607,223 shares, respectively (427) (150) Unearned stock-based compensation (16) (15) Retained earnings 292 161 Accumulated other comprehensive loss (1,316) (1,268) Total stockholders’ equity 2,520 2,620 Total liabilities and stockholders’ equity $ 2,912 $ 2,981 This statement should be read in conjunction with the notes to the consolidated financial statements. HUNTSMAN CORPORATION (Parent Only) STATEMENTS OF OPERATIONS (In Millions) Year ended December 31, 2018 2017 2016 Selling, general and administrative expenses $ (4) $ (4) $ (4) Interest income 21 16 12 Equity in income of subsidiaries 163 501 196 Dividend income—affiliate 154 120 119 Other income 3 3 3 Net income $ 337 $ 636 $ 326 This statement should be read in conjunction with the notes to the consolidated financial statements. HUNTSMAN CORPORATION (Parent Only) STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (In Millions) Year ended December 31, 2018 2017 2016 Net income $ 337 $ 636 $ 326 Other comprehensive (loss) income, net of tax: Foreign currency translations adjustments (192) 210 (171) Pension and other postretirement benefits adjustments (39) 86 (219) Other, net 304 105 30 Other comprehensive income (loss), net of tax 73 401 (360) Comprehensive loss 410 1,037 (34) Comprehensive income attributable to noncontrolling interests (266) (127) (23) Comprehensive income (loss) attributable to Huntsman Corporation $ 144 $ 910 $ (57) This statement should be read in conjunction with the notes to the consolidated financial statements. HUNTSMAN CORPORATION (Parent Only) STATEMENTS OF STOCKHOLDERS’ EQUITY (In Millions, Except Share Amounts) Huntsman Corporation Stockholders’ Equity Retained Accumulated Shares Additional Unearned earnings other Common Common paid-in Treasury stock-based (accumulated comprehensive Total stock stock capital stock compensation deficit) loss equity Beginning balance, January 1, 2016 237,080,026 3 $ 3,407 $ (135) $ (17) $ (528) $ (1,288) $ 1,442 Net income — — — — — 326 — 326 Other comprehensive loss — — — — — — (383) (383) Issuance of nonvested stock awards — — 16 — (16) — — — Vesting of stock awards 914,081 — 2 — — — — 2 Recognition of stock-based compensation — — 9 — 16 — — 25 Repurchase and cancellation of stock awards (256,468) — — — — (3) — (3) Stock options exercised 77,477 — 1 — — — — 1 Excess tax benefit related to stock-based compensation — — (3) — — — — (3) Treasury stock repurchased (1,444,769) — 15 (15) — — — — Dividends declared on common stock — — — — — (120) — (120) Balance, December 31, 2016 236,370,347 3 3,447 (150) (17) (325) (1,671) 1,287 Net income — — — — — 636 — 636 Other comprehensive income — — — — — — 403 403 Issuance of nonvested stock awards — — 18 — (18) — — — Vesting of stock awards 1,316,975 — 8 — — — — 8 Recognition of stock-based compensation — — 10 — 18 — — 28 Repurchase and cancellation of stock awards (402,978) — — — — (12) — (12) Disposition of a portion of Venator — — 413 — — — — 413 Costs of the IPO and secondary offering of Venator — — (58) — — — — (58) Conversion of restricted awards to Venator awards — — (2) — 2 — — — Stock options exercised 2,929,262 — 53 — — (18) — 35 Dividends declared on common stock — — — — — (120) — (120) Balance, December 31, 2017 240,213,606 $ 3 $ 3,889 $ (150) $ (15) $ 161 $ (1,268) $ 2,620 Cumulative effect of changes in fair value of equity investments — — — — — 10 (10) — Net income — — — — — 337 — 337 Other comprehensive loss — — — — — — (198) (198) Issuance of nonvested stock awards — — 14 — (14) — — — Vesting of stock awards 1,135,003 — 11 — — — — 11 Recognition of stock-based compensation — — 8 — 13 — — 21 Repurchase and cancellation of stock awards (259,643) — — — — (30) — (30) Stock options exercised 2,310,663 — 46 — — (29) — 17 Repurchase of common stock (10,405,457) — — (277) — — — (277) Disposition of a portion of Venator — — 18 — — — — 18 Costs of the secondary offering of Venator — — (2) — — — — (2) Accrued and unpaid dividends — — — — — (1) — (1) Dividends declared on common stock — — — — — (156) — (156) Deconsolidation of Venator — — — — — — 160 160 Balance, December 31, 2018 232,994,172 $ 3 $ 3,984 $ (427) $ (16) $ 292 $ (1,316) $ 2,520 This statement should be read in conjunction with the notes to the consolidated financial statements. HUNTSMAN CORPORATION (Parent Only) STATEMENTS OF CASH FLOWS (In Millions) Year ended December 31, 2018 2017 2016 Operating Activities: Net income $ 337 $ 636 $ 326 Equity in income of subsidiaries (163) (501) (196) Stock-based compensation 1 1 1 Noncash interest income (21) (16) (12) Changes in operating assets and liabilities 19 10 9 Net cash provided by operating activities 173 130 128 Investing Activities: Loan to affiliate — (47) — Proceeds from loan repayment by affiliate 255 — 1 Net cash provided by (used in) investing activities 255 (47) 1 Financing Activities: Dividends paid to common stockholders (156) (120) (120) Repurchase and cancellation of stock awards (30) (12) (3) Proceeds from issuance of common stock 17 35 1 Repurchase of common stock (277) — — Increase (decrease) in payable to affiliates 16 15 (6) Net cash used in financing activities (430) (82) (128) (Decrease) increase in cash and cash equivalents (2) 1 1 Cash and cash equivalents at beginning of period 2 1 — Cash and cash equivalents at end of period $ — $ 2 $ 1 This statement should be read in conjunction with the notes to the consolidated financial statements. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
Schedule II - Valuation and Qualifying Accounts | |
Schedule II - Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts (In Millions) Column A Column B Column C Column D Column E Additions Charges Balance at (credits) Charged Balance Beginning to cost and to other at End Description of Period expenses accounts Deductions of Period Allowance for doubtful accounts: Year ended December 31, 2018 $ 25 $ 2 $ (5) $ — $ 22 Year ended December 31, 2017 23 3 (1) — 25 Year ended December 31, 2016 22 2 (1) — 23 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |
Schedule II - Valuation and Qualifying Accounts | |
Schedule II - Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts (In Millions) Column A Column B Column C Column D Column E Additions Charges Balance at (credits) Charged Balance Beginning to cost and to other at End Description of Period expenses accounts Deductions of Period Allowance for doubtful accounts: Year ended December 31, 2018 $ 25 $ 2 $ (5) $ — $ 22 Year ended December 31, 2017 23 3 (1) — 25 Year ended December 31, 2016 22 2 (1) — 23 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
ASSET RETIREMENT OBLIGATIONS | Asset Retirement Obligations We accrue for asset retirement obligations, which consist primarily of landfill capping, closure and post‑closure costs, asbestos abatement costs, demolition and removal costs and leasehold remediation costs, in the period in which the obligations are incurred. Asset retirement obligations are accrued at estimated fair value. When the liability is initially recorded, we capitalize the cost by increasing the carrying amount of the related long‑lived asset. Over time, the liability is accreted to its estimated settlement value and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement of the liability, we will recognize a gain or loss for any difference between the settlement amount and the liability recorded. Asset retirement obligations were $11 million and $9 million at December 31, 2018 and 2017, respectively. |
CARRYING VALUE OF LONG-LIVED ASSETS | Carrying Value of Long‑Lived Assets We review long‑lived assets and all amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. Recoverability is based upon current and anticipated undiscounted cash flows, and we recognize an impairment when such estimated cash flows are less than the carrying value of the asset. Measurement of the amount of impairment, if any, is based upon the difference between carrying value and fair value. Fair value is generally estimated by discounting estimated future cash flows using a discount rate commensurate with the risks involved or selling price of assets held for sale. See “Note 12. Restructuring, Impairment and Plant Closing Costs.” |
CASH AND CASH EQUIVALENTS | Cash and Cash Equivalents We consider cash in checking accounts and cash in short‑term highly liquid investments with remaining maturities of three months or less at the date of purchase, to be cash and cash equivalents. Cash flows from financing activities from discontinued operations are not presented separately in our consolidated statements of cash flows. |
COST OF GOODS SOLD | Cost of Goods Sold We classify the costs of manufacturing and distributing our products as cost of goods sold. Manufacturing costs include variable costs, primarily raw materials and energy, and fixed expenses directly associated with production. Manufacturing costs also include, among other things, plant site operating costs and overhead (including depreciation), production planning and logistics costs, repair and maintenance costs, plant site purchasing costs, and engineering and technical support costs. Distribution, freight and warehousing costs are also included in cost of goods sold. |
DERIVATIVES AND HEDGING ACTIVITIES | Derivatives and Hedging Activities All derivatives, whether designated in hedging relationships or not, are recorded on our balance sheet at fair value. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and the hedged items are recognized in earnings. If the derivative is designated as a cash flow hedge, changes in the fair value of the derivative are recorded in accumulated other comprehensive loss, to the extent effective, and will be recognized in the income statement when the hedged item affects earnings. Changes in the fair value of the hedge in the net investment of certain international operations are recorded in other comprehensive income (loss), to the extent effective. The effectiveness of a cash flow hedging relationship is established at the inception of the hedge, and after inception we perform effectiveness assessments at least every three months. A derivative designated as a cash flow hedge is determined to be effective if the change in value of the hedge divided by the change in value of the hedged item is within a range of 80% to 125%. Hedge ineffectiveness in a cash flow hedge occurs only if the cumulative gain or loss on the derivative hedging instrument exceeds the cumulative change in the expected future cash flows on the hedged transaction. For a derivative that does not qualify or has not been designated as a hedge, changes in fair value are recognized in earnings. |
ENVIRONMENTAL EXPENDITURES | Environmental Expenditures Environmental related restoration and remediation costs are recorded as liabilities when site restoration and environmental remediation and clean‑up obligations are either known or considered probable and the related costs can be reasonably estimated. Other environmental expenditures that are principally maintenance or preventative in nature are recorded when expended and incurred and are expensed or capitalized as appropriate. See “Note 20. Environmental, Health and Safety Matters.” |
EQUITY METHOD INVESTMENTS | Equity Method Investments We account for our equity investments where we own a non-controlling interest, but exercise significant influence, under the equity method of accounting. Under the equity method of accounting, our original cost of the investment is adjusted for our share of equity in the earnings of the equity investee and reduced by dividends and distributions of capital received, unless the fair value option is elected, in which case the investment balance is marked to fair value each reporting period and the impact of changes in fair value of the equity investment are reported in earnings. We elected the fair value option to account for our equity method investment in Venator. For more information, see “Note 4. Discontinued Operations and Business Dispositions.” The change in the fair value related to our equity method investment in Venator is presented in “Fair value adjustments to Venator investment” on the consolidated statements of operations. |
FOREIGN CURRENCY TRANSLATION | Foreign Currency Translation The accounts of our operating subsidiaries outside of the U.S., unless they are operating in highly inflationary economic environments, consider the functional currency to be the currency of the economic environment in which they operate. Accordingly, assets and liabilities are translated at rates prevailing at the balance sheet date. Revenues, expenses, gains and losses are translated at a weighted average rate for the period. Cumulative translation adjustments are recorded to equity as a component of accumulated other comprehensive loss. If a subsidiary operates in an economic environment that is considered to be highly inflationary (100% cumulative inflation over a three-year period), the U.S. dollar is considered to be the functional currency and gains and losses from remeasurement to the U.S. dollar from the local currency are included in the statement of operations. Where a subsidiary’s operations are effectively run, managed, financed and contracted in U.S. dollars, such as certain finance subsidiaries outside of the U.S., the U.S. dollar is considered to be the functional currency. Foreign currency transaction gains and losses are recorded in other operating (income) expense, net in our consolidated statements of operations and were gains of $3 million, $5 million and $2 million for the years ended December 31, 2018, 2017 and 2016, respectively. |
INCOME TAXES | Income Taxes We use the asset and liability method of accounting for income taxes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial and tax reporting purposes. We evaluate deferred tax assets to determine whether it is more likely than not that they will be realized. Valuation allowances are reviewed on a tax jurisdiction basis to analyze whether there is sufficient positive or negative evidence to support a change in judgment about the realizability of the related deferred tax assets for each jurisdiction. These conclusions require significant judgment. In evaluating the objective evidence that historical results provide, we consider the cyclicality of businesses and cumulative income or losses during the applicable period. Cumulative losses incurred over the period limits our ability to consider other subjective evidence such as our projections for the future. Changes in expected future income in applicable jurisdictions could affect the realization of deferred tax assets in those jurisdictions. On December 22, 2017, the U.S. Tax Reform Act was signed into law. The U.S. Tax Reform Act significantly revised the U.S. corporate income tax regime by, among other things, lowering the U.S. corporate tax rate from 35% to 21%, effective January 1, 2018, repealing the deduction for domestic production activities and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. As a result of the U.S. Tax Reform Act, the Company recorded net tax benefits of $135 million (a provisional tax benefit of $137 million in 2017 offset by a final tax expense of $2 million in 2018) due to a remeasurement of deferred U.S. tax assets and liabilities and net tax expense of $115 million (a provisional tax expense of $85 million in 2017, a $29 million final federal tax expense in 2018 and a $1 million state tax expense in 2018) due to the transition tax on deemed repatriation of deferred foreign income. Accounting for uncertainty in income taxes prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The application of income tax law is inherently complex. We are required to determine if an income tax position meets the criteria of more‑likely‑than‑not to be realized based on the merits of the position under tax law, in order to recognize an income tax benefit. This requires us to make significant judgments regarding the merits of income tax positions and the application of income tax law. Additionally, if a tax position meets the recognition criteria of more‑likely‑than‑not we are required to make judgments and apply assumptions to measure the amount of the tax benefits to recognize. These judgments are based on the probability of the amount of tax benefits that would be realized if the tax position was challenged by the taxing authorities. Interpretations and guidance surrounding income tax laws and regulations change over time. As a consequence, changes in assumptions and judgments can materially affect amounts recognized in our consolidated financial statements. We have no need for, or change in, any unrecognized tax positions due to the U.S. Tax Reform Act. For further information concerning taxes, see “Note 18. Income Taxes.” |
INTANGIBLE ASSETS AND GOODWILL | Intangible Assets and Goodwill Intangible assets are stated at cost (fair value at the time of acquisition) and are amortized using the straight‑line method over the estimated useful lives or the life of the related agreement as follows: Patents and technology 5 ‑ 30 years Trademarks 9 ‑ 30 years Licenses and other agreements 5 ‑ 15 years Other intangibles 5 ‑ 15 years Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill is not subject to any method of amortization, but is tested for impairment annually (at the beginning of the third quarter) and when events and circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. When the fair value is less than the carrying value of the related reporting unit, we are required to reduce the amount of goodwill through a charge to earnings. Fair value is estimated using the market approach, as well as the income approach based on discounted cash flow projections. Goodwill has been assigned to reporting units for purposes of impairment testing. The following table summarizes the changes in the carrying amount of goodwill for year ended December 31, 2018 (dollars in millions): Performance Advanced Polyurethanes Products Materials Total Balance as of January 1, 2018 $ 40 $ 17 $ 83 $ 140 Goodwill acquired during year(1) 142 — — 142 Foreign currency effect on balance (9) (1) 3 (7) Balance as of December 31, 2018 $ 173 $ 16 $ 86 $ 275 (1) This reflects net amounts, including adjustments related to preliminary valuations of acquisition assets and liabilities. |
INVENTORIES | Inventories Inventories are stated at the lower of cost or market, with cost determined using LIFO, first‑in first‑out, and average costs methods for different components of inventory. |
LEGAL COSTS | Legal Costs We expense legal costs, including those legal costs incurred in connection with a loss contingency, as incurred. |
NET INCOME PER SHARE ATTRIBUTABLE TO HUNTSMAN CORPORATION | Net Income Per Share Attributable to Huntsman Corporation Basic income per share excludes dilution and is computed by dividing net income attributable to Huntsman Corporation common stockholders by the weighted average number of shares outstanding during the period. Diluted income per share reflects all potential dilutive common shares outstanding during the period and is computed by dividing net income available to Huntsman Corporation common stockholders by the weighted average number of shares outstanding during the period increased by the number of additional shares that would have been outstanding as dilutive securities. Basic and diluted income per share is determined using the following information (in millions): Year ended December 31, 2018 2017 2016 Numerator: Basic and diluted income from continuing operations: Income from continuing operations attributable to Huntsman Corporation $ 764 $ 478 $ 334 Basic and diluted net income: Net income attributable to Huntsman Corporation $ 337 $ 636 $ 326 Denominator: Weighted average shares outstanding 238.1 238.4 236.3 Dilutive shares: Stock-based awards 3.5 5.5 3.3 Total weighted average shares outstanding, including dilutive shares 241.6 243.9 239.6 Additional stock‑based awards of 0.8 million, 0.8 million and 5.7 million weighted average equivalent shares of stock were outstanding during the years ended December 31, 2018, 2017 and 2016, respectively. However, these stock‑based awards were not included in the computation of diluted earnings per share for the respective periods mentioned because the effect would be anti‑dilutive. |
OTHER NONCURRENT ASSETS | Other Noncurrent Assets Periodic maintenance and repairs applicable to major units of manufacturing facilities (a “turnaround”) are accounted for on the deferral basis by capitalizing the costs of the turnaround and amortizing the costs over the estimated period until the next turnaround. |
PRINCIPLES OF CONSOLIDATION | Principles of Consolidation Our consolidated financial statements include the accounts of our wholly owned and majority owned subsidiaries and any variable interest entities for which we are the primary beneficiary. All intercompany accounts and transactions have been eliminated. |
PROPERTY, PLANT AND EQUIPMENT | Property, Plant and Equipment Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight‑line method over the estimated useful lives or lease term as follows: Buildings and equipment 5 ‑ 50 years Plant and equipment 3 ‑ 30 years Furniture, fixtures and leasehold improvements 5 ‑ 20 years Interest expense capitalized as part of plant and equipment was $4 million, $9 million and $12 million for the years ended December 31, 2018, 2017 and 2016, respectively. Normal maintenance and repairs of plant and equipment are charged to expense as incurred. Renewals, betterments and major repairs that materially extend the useful life of the assets are capitalized, and the assets replaced, if any, are retired. |
RECLASSIFICATIONS | Reclassifications Certain amounts in the consolidated financial statements for prior periods have been reclassified to conform with the current presentation. These reclassifications include the presentation of the other components of net periodic pension cost and net periodic postretirement cost, other than service costs, within other nonoperating income in accordance with Accounting Standards Update (“ASU”) No. 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . We previously presented these amounts within cost of goods sold and selling, general and administrative expenses. See “—Accounting Pronouncements Adopted During 2018.” Pursuant to ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , we began including the change in restricted cash as part of the change in cash and equivalents when reconciling the beginning-of-period and end-of-period total amounts on the statements of cash flows beginning in 2018. We previously presented changes in restricted cash as an investing activity in the statements of cash flows. See “ — Accounting Pronouncements Adopted During 2018.” |
REVENUE RECOGNITION | Revenue Recognition We generate substantially all of our revenue through product sales in which revenue is recognized at a point in time. We recognize revenue when control of the promised goods is transferred to our customers. Control of goods usually passes to the customer at the time shipment is made. Revenue is measured as the amount that reflects the consideration that we expect to be entitled to in exchange for those goods. See “Note 23. Revenue Recognition.” |
SECURITIZATION OF ACCOUNTS RECEIVABLE | Securitization of Accounts Receivable Under our A/R Programs, we grant an undivided interest in certain of our trade receivables to the special purpose entities (“SPE”) in the U.S. and EU. This undivided interest serves as security for the issuance of debt. The A/R Programs provide for financing in both U.S. dollars and euros. The amounts outstanding under our A/R Programs are accounted for as secured borrowings. See “Note 14. Debt—Direct and Subsidiary Debt—A/R Programs.” |
STOCK-BASED COMPENSATION | Stock‑Based Compensation We measure the cost of employee services received in exchange for an award of equity instruments based on the grant‑date fair value of the award. That cost, net of estimated forfeitures, will be recognized over the period during which the employee is required to provide services in exchange for the award. See “Note 22. Stock‑Based Compensation Plan.” |
USE OF ESTIMATES | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
ACCOUNTING PRONOUNCEMENTS ADOPTED DURING 2018 | Accounting Pronouncements Adopted During 2018 In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014‑09, Revenue from Contracts with Customers (Topic 606) , outlining a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers and supersedes most current revenue recognition guidance. In March 2016, the FASB issued ASU No. 2016‑08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , clarifying the implementation guidance on principal versus agent considerations, in April 2016, the FASB issued ASU No. 2016‑10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , clarifying the implementation guidance on identifying performance obligations in a contract and determining whether an entity’s promise to grant a license provides a customer with either a right to use the entity’s intellectual property (which is satisfied at a point in time) or a right to access the entity’s intellectual property (which is satisfied over time), in May 2016, the FASB issued ASU No. 2016‑12, Revenue from Customers (Topic 606): Narrow‑Scope Improvements and Practical Expedients , providing clarifications and practical expedients for certain narrow aspects in Topic 606, and in December 2016, the FASB issued ASU 2016‑20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers . The amendments in these ASUs are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The amendments in ASU No. 2014‑09, ASU No. 2016‑08, ASU No. 2016‑10, ASU No. 2016‑12 and ASU No. 2016‑20 should be applied retrospectively. On January 1, 2018, we adopted the amendments in ASU No. 2014‑09, ASU No. 2016‑08, ASU No. 2016‑10, ASU No. 2016‑12 and ASU No. 2016‑20 to all current revenue contracts using the modified retrospective approach, and the initial adoption of these amendments did not have an impact on our consolidated financial statements. As a result of the adoption of these amendments, we revised our accounting policy for revenue recognition as detailed in “Note 23. Revenue Recognition.” In January 2016, the FASB issued ASU No. 2016‑01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities . The amendments in this ASU require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The amendments allow equity investments that do not have readily determinable fair values to be remeasured at fair value either upon the occurrence of an observable price change or upon identification of an impairment. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. An entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. On January 1, 2018, we adopted the amendments in ASU No. 2016‑01 and upon transition recorded a cumulative-effect adjustment of approximately $10 million, net of tax, relating to prior years’ changes in fair value of equity investments from other comprehensive income to retained earnings. Beginning in the first quarter of 2018, we also started recognizing the current period change in fair value of equity investments in net income. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . The amendments in this ASU clarify and include specific guidance to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The amendments in this ASU should be applied using a retrospective transition method to each period presented. We adopted the amendments in this ASU effective January 1, 2018, and the initial adoption of the amendments in this ASU did not have a significant impact on our consolidated financial statements. In November 2016, the FASB issued ASU No. 2016‑18, Statement of Cash Flows (Topic 230): Restricted Cash . The amendments in this ASU require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning‑of‑period and end‑of‑period total amounts shown on the statement of cash flows. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, and interim period within those fiscal years. The amendments in this ASU were applied using a retrospective transition method to each period presented. We adopted the amendments in this ASU effective January 1, 2018, and the initial adoption of the amendments in this ASU did not have a significant impact on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017‑01, Business Combinations (Topic 805): Clarifying the Definition of a Business . The amendments in this ASU clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The amendments in this ASU should be applied prospectively on or after the effective date. No disclosures are required at transition. We adopted the amendments in this ASU effective January 1, 2018, and the initial adoption of this ASU did not have a significant impact on our consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . The amendments in this ASU require that an employer report the service cost component of net periodic pension cost and net periodic postretirement benefit cost in the same line items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside of income from operations. The amendments in this ASU also allow only the service cost component to be eligible for capitalization when applicable (for example, as a cost of internally manufactured inventory or a self-constructed asset). The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The amendments in this ASU should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit cost in assets. We adopted the amendments in this ASU effective January 1, 2018, which impacted the presentation of our consolidated financial statements. Our previous presentation of service cost components was consistent with the amendments in this ASU. However, we now present the other components within other income, net, whereas we previously presented these within cost of goods sold and selling, general and administrative expenses. In August 2018, the FASB issued ASU No. 2018‑13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement . The amendments in this ASU modify certain disclosure requirements on fair value measurements in Topic 820 to improve the effectiveness of such disclosures. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted upon issuance of this ASU. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. We early adopted the removed and modified disclosures in this ASU for the year ended December 31, 2018, and they did not have a significant impact on our consolidated financial statements. We elected to delay the adoption of the additional disclosures in this ASU until their effective date, but do not expect the adoption of the additional disclosures in this ASU to have a significant impact on our consolidated financial statements. Accounting Pronouncements Pending Adoption in Future Periods In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The amendments in this ASU will increase transparency and comparability among entities by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in this ASU will require lessees to recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. In January 2018, the FASB issued ASU No. 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842 , providing an optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under the current leases guidance in Topic 840, and in July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements , providing an optional transition method allowing entities to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The amendments in these ASUs are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early application of the amendments in these ASUs is permitted for all entities. Reporting entities can elect to recognize and measure leases under these amendments at the beginning of the earliest period presented using a modified retrospective approach or otherwise elect the transition method provided under ASU No. 2018-11. We are currently evaluating the impact of the adoption of the amendments in these ASUs on our consolidated financial statements. Based on our preliminary assessment the estimated right-of-use asset and lease liability that we will recognize on our balance sheet upon adoption will be approximately $400 million to $450 million. This estimate could change pending the finalization of the incremental borrowing rate for certain leases. We are evaluating key policy elections and considerations under the amendments in these ASUs and are developing internal policies to address these amendments. In August 2017, the FASB issued ASU No. 2017‑12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The amendments in this ASU better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships as well as the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements to increase the understandability of the results of an entity’s intended hedging strategies. The amendments in this ASU also include certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted in any interim period after the issuance of this ASU. Transition requirements and elections should be applied to hedging relationships existing on the date of adoption. For cash flow and net investment hedges, an entity should apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness, and the amended presentation and disclosure guidance is required only prospectively. We do not expect the adoption of the amendments in this ASU to have a significant impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018‑14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans . The amendments in this ASU modify certain disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing disclosures that no longer are considered cost beneficial, clarifying the specific requirements of disclosures and adding disclosure requirements identified as relevant. The amendments in this ASU are effective for fiscal years ending after December 15, 2020 and should be applied on a retrospective basis to all periods presented. Early adoption is permitted. We do not expect the adoption of the amendments in this ASU to have a significant impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018‑15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted in any interim period after the issuance of this ASU. We do not expect the adoption of the amendments in this ASU to have a significant impact on our consolidated financial statements. In August 2018, the SEC issued a final rule, SEC Final Rule Release No. 33-10532, Disclosure Update and Simplification , that amends certain of its disclosure requirements that have become redundant, duplicative, overlapping, outdated or superseded, in light of other SEC disclosure requirements or U.S. GAAP. For filings on Form 10-Q, the final rule, amongst other items, extends to interim periods the annual requirement to disclose changes in stockholders’ equity. As amended by the final rule, registrants must now analyze changes in stockholders’ equity, in the form of a reconciliation, for the then current and comparative year-to-date interim periods, with subtotals for each interim period. The final rule became effective on November 5, 2018, that date being 30 days after its publication in the Federal Register. As such, we will apply these changes in the presentation of stockholders’ equity beginning with our March 31, 2019 Form 10-Q. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of estimated useful lives of intangible assets or life of the related agreement | Patents and technology 5 ‑ 30 years Trademarks 9 ‑ 30 years Licenses and other agreements 5 ‑ 15 years Other intangibles 5 ‑ 15 years |
Summary of changes in the carrying amount of goodwill | The following table summarizes the changes in the carrying amount of goodwill for year ended December 31, 2018 (dollars in millions): Performance Advanced Polyurethanes Products Materials Total Balance as of January 1, 2018 $ 40 $ 17 $ 83 $ 140 Goodwill acquired during year(1) 142 — — 142 Foreign currency effect on balance (9) (1) 3 (7) Balance as of December 31, 2018 $ 173 $ 16 $ 86 $ 275 (1) This reflects net amounts, including adjustments related to preliminary valuations of acquisition assets and liabilities. |
Schedule of basic and diluted income per share | Basic and diluted income per share is determined using the following information (in millions): Year ended December 31, 2018 2017 2016 Numerator: Basic and diluted income from continuing operations: Income from continuing operations attributable to Huntsman Corporation $ 764 $ 478 $ 334 Basic and diluted net income: Net income attributable to Huntsman Corporation $ 337 $ 636 $ 326 Denominator: Weighted average shares outstanding 238.1 238.4 236.3 Dilutive shares: Stock-based awards 3.5 5.5 3.3 Total weighted average shares outstanding, including dilutive shares 241.6 243.9 239.6 |
Schedule of estimated useful lives or lease term of property, plant and equipment | Buildings and equipment 5 ‑ 50 years Plant and equipment 3 ‑ 30 years Furniture, fixtures and leasehold improvements 5 ‑ 20 years |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
BUSINESS COMBINATION | |
Schedule of allocation of acquisition cost to the assets acquired and liabilities assumed | The preliminary allocation of acquisition cost to the assets acquired and liabilities assumed is summarized as follows (dollars in millions): Fair value of assets acquired and liabilities assumed: Cash paid for Demilec Acquisition in Q2 2018 $ 357 Purchase price adjustment received in Q3 2018 (4) Net acquisition cost $ 353 Cash $ 1 Accounts receivable 31 Inventories 23 Prepaid expenses and other current assets 1 Property, plant and equipment, net 21 Intangible assets 177 Goodwill 142 Accounts payable (16) Accrued liabilities (3) Deferred income taxes (22) Other noncurrent liabilities (2) Total fair value of net assets acquired $ 353 |
Schedule of estimated pro forma revenues and net income | If this acquisition were to have occurred on January 1, 2017, the following estimated pro forma revenues, net income, net income attributable to Huntsman Corporation and Huntsman International and income per share for Huntsman Corporation would have been reported (dollars in millions): Pro Forma (Unaudited) Year ended December 31, 2018 2017 Revenues $ 9,437 $ 8,523 Net income 639 728 Net income attributable to Huntsman Corporation 326 623 Income per share: Basic 1.37 2.61 Diluted 1.35 2.55 Pro Forma (Unaudited) Year ended December 31, 2018 2017 Revenues $ 9,437 $ 8,523 Net income 625 721 Net income attributable to Huntsman International 312 616 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
DISCONTINUED OPERATIONS | |
Summary of major classes of items held for sale and discontinued operations | Carrying amounts of major classes of assets held for sale: Accounts receivable $ 380 Inventories 454 Other current assets 318 Property, plant and equipment, net 1,424 Deferred income taxes 158 Other noncurrent assets 146 Total assets held for sale $ 2,880 Carrying amounts of major classes of liabilities held for sale: Accounts payable $ 385 Accrued liabilities 236 Other current liabilities 25 Long-term debt 746 Other noncurrent liabilities 300 Total liabilities held for sale $ 1,692 The following table summarizes major classes of line items constituting pretax and after-tax income of discontinued operations. Huntsman Corporation Year ended December 31, 2018(1) 2017 2016 Major classes of line items constituting pretax income of discontinued operations: Trade sales, services and fees, net $ 2,148 $ 2,234 $ 2,168 Cost of goods sold 1,333 1,840 2,012 Other expense items, net that are not major 279 169 188 Income (loss) from discontinued operations before income taxes 536 225 (32) Income tax (expense) benefit (34) (67) 24 Loss on disposal (427) — — Valuation allowance (270) — — (Loss) income from discontinued operations, net of tax (195) 158 (8) Net income attributable to noncontrolling interests (6) (10) (10) Net (loss) income attributable to discontinued operations $ (201) $ 148 $ (18) |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |
DISCONTINUED OPERATIONS | |
Summary of major classes of items held for sale and discontinued operations | Huntsman International Year ended December 31, 2018(1) 2017 2016 Major classes of line items constituting pretax income of discontinued operations: Trade sales, services and fees, net $ 2,148 $ 2,234 $ 2,168 Cost of goods sold 1,333 1,843 2,017 Other expense items, net that are not major 279 169 188 Income (loss) from discontinued operations before income taxes 536 222 (37) Income tax (expense) benefit (34) (67) 24 Loss on disposal (427) — — Valuation allowance (270) — — (Loss) income from discontinued operations, net of tax (195) 155 (13) Net income attributable to noncontrolling interests (6) (10) (10) Net (loss) income attributable to discontinued operations $ (201) $ 145 $ (23) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INVENTORIES | |
Schedule of inventory | Inventories consisted of the following (dollars in millions): December 31, December 31, 2018 2017 Raw materials and supplies $ 215 $ 189 Work in progress 51 48 Finished goods 927 897 Total 1,193 1,134 LIFO reserves (59) (61) Net inventories $ 1,134 $ 1,073 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of cost and accumulated depreciation of property, plant and equipment | The cost and accumulated depreciation of property, plant and equipment were as follows (dollars in millions): Huntsman Corporation December 31, 2018 2017 Land $ 142 $ 150 Buildings 660 644 Plant and equipment 6,100 5,929 Construction in progress 307 360 Total 7,209 7,083 Less accumulated depreciation (4,145) (3,985) Net $ 3,064 $ 3,098 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of cost and accumulated depreciation of property, plant and equipment | December 31, 2018 2017 Land $ 142 $ 150 Buildings 660 644 Plant and equipment 6,154 5,982 Construction in progress 307 360 Total 7,263 7,136 Less accumulated depreciation (4,199) (4,041) Net $ 3,064 $ 3,095 |
INVESTMENT IN UNCONSOLIDATED _2
INVESTMENT IN UNCONSOLIDATED AFFILIATES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INVESTMENT IN UNCONSOLIDATED AFFILIATES | |
Schedule of ownership percentage and investment in unconsolidated affiliates | Our ownership percentage and investment in unconsolidated affiliates were as follows (dollars in millions): December 31, 2018 2017 Equity Method: Venator Materials PLC (49%)(1) $ 219 $ — BASF Huntsman Shanghai Isocyanate Investment BV (50%)(2) 120 116 Nanjing Jinling Huntsman New Material Co., Ltd. (49%) 163 124 Jurong Ningwu New Material Development Co., Ltd. (30%) 24 21 Total equity method investments 526 261 Cost Method: International Diol Company (4%) — 5 Total investments $ 526 $ 266 (1) We account for our remaining investment in Venator as an equity method investment using the fair value option. For more information see “Note 4. Discontinued Operations and Business Dispositions—Separation and Deconsolidation of Venator.” (2) We own 50% of BASF Huntsman Shanghai Isocyanate Investment BV. BASF Huntsman Shanghai Isocyanate Investment BV owns a 70% interest in SLIC, thus giving us an indirect 35% interest in SLIC. |
Summarized financial information of our unconsolidated affiliates | Summarized financial information of our unconsolidated affiliates as of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016 is as follows (dollars in millions): December 31, 2018 2017 Current assets $ 1,548 $ 391 Non-current assets 2,444 1,138 Current liabilities 781 358 Non-current liabilities 1,683 567 Noncontrolling interests 8 — December 31, 2018(1) 2017 2016 Revenues $ 2,181 $ 1,109 $ 645 Gross profit 221 112 49 Income from continuing operations 124 34 16 Net income 124 34 16 (1) |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
VARIABLE INTEREST ENTITIES | |
Schedule of financial information of VIE's | December 31, 2018 2017 Current assets $ 92 $ 114 Property, plant and equipment, net 265 283 Other noncurrent assets 136 116 Deferred income taxes 32 33 Intangible assets 10 10 Goodwill 14 14 Total assets $ 549 $ 570 Current liabilities $ 178 $ 163 Long-term debt 61 86 Deferred income taxes 11 12 Other noncurrent liabilities 97 98 Total liabilities $ 347 $ 359 The revenues, income from continuing operations before income taxes and net cash provided by operating activities for our variable interest entities are as follows (dollars in millions): Year ended December 31, 2018 2017 2016 Revenues $ 154 $ 132 $ 97 Income from continuing operations before income taxes 40 25 15 Net cash provided by operating activities 65 51 50 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INTANGIBLE ASSETS | |
Schedule of gross carrying amount and accumulated amortization of intangible assets | The gross carrying amount and accumulated amortization of intangible assets were as follows (dollars in millions): Huntsman Corporation December 31, 2018 December 31, 2017 Carrying Accumulated Carrying Accumulated Amount Amortization Net Amount Amortization Net Patents, trademarks and technology $ 424 $ 333 $ 91 $ 350 $ 332 $ 18 Licenses and other agreements 135 31 104 40 25 15 Non-compete agreements 3 2 1 4 2 2 Other intangibles 83 60 23 82 61 21 Total $ 645 $ 426 $ 219 $ 476 $ 420 $ 56 |
Schedule of estimated future amortization expense for intangible assets | Our and Huntsman International’s estimated future amortization expense for intangible assets over the next five years is as follows (dollars in millions): Year ending December 31, 2019 $ 19 2020 17 2021 16 2022 16 2023 16 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |
INTANGIBLE ASSETS | |
Schedule of gross carrying amount and accumulated amortization of intangible assets | December 31, 2018 December 31, 2017 Carrying Accumulated Carrying Accumulated Amount Amortization Net Amount Amortization Net Patents, trademarks and technology $ 424 $ 333 $ 91 $ 350 $ 332 $ 18 Licenses and other agreements 135 31 104 40 25 15 Non-compete agreements 3 2 1 4 2 2 Other intangibles 91 68 23 90 69 21 Total $ 653 $ 434 $ 219 $ 484 $ 428 $ 56 |
OTHER NONCURRENT ASSETS (Tables
OTHER NONCURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER NONCURRENT ASSETS | |
Schedule of other noncurrent assets | Other noncurrent assets consisted of the following (dollars in millions): December 31, 2018 2017 Capitalized turnaround costs, net $ 280 $ 233 Catalyst assets, net 56 46 Other 217 218 Total $ 553 $ 497 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Liabilities | |
Schedule of accrued liabilities | Accrued liabilities consisted of the following (dollars in millions): Huntsman Corporation December 31, 2018 2017 Payroll and related accruals $ 150 $ 172 Income taxes 86 62 Volume and rebate accruals 66 58 Taxes other than income taxes 60 77 Restructuring and plant closing reserves 23 15 Interest 19 20 Pension liabilities 11 15 Other postretirement benefits 6 7 Environmental accruals 2 6 Other miscellaneous accruals 131 137 Total $ 554 $ 569 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |
Accrued Liabilities | |
Schedule of accrued liabilities | December 31, 2018 2017 Payroll and related accruals $ 150 $ 172 Income taxes 86 62 Volume and rebate accruals 66 58 Taxes other than income taxes 60 77 Restructuring and plant closing reserves 23 15 Interest 19 20 Pension liabilities 11 15 Other postretirement benefits 6 7 Environmental accruals 2 6 Other miscellaneous accruals 128 134 Total $ 551 $ 566 |
RESTRUCTURING, IMPAIRMENT AND_2
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS | |
Schedule of accrued restructuring, impairment and plant closing costs by type of cost and initiative | As of December 31, 2018, 2017 and 2016, accrued restructuring costs of continuing operations by type of cost and initiative consisted of the following (dollars in millions): Non-cancelable Other Workforce Demolition and lease and contract restructuring reductions(1) decommissioning termination costs costs Total(2) Accrued liabilities as of January 1, 2016 $ 19 $ 16 $ 37 $ 5 $ 77 2016 charges for 2015 and prior initiatives 1 24 9 13 47 2016 charges for 2016 initiatives 1 — — 5 6 Reversal of reserves no longer required (2) — — — (2) Distribution of prefunded restructuring costs (5) (5) — (1) (11) 2016 payments for 2015 and prior initiatives (8) (15) (4) (13) (40) 2016 payments for 2016 initiatives (1) — — (4) (5) Foreign currency effect on liability balance (1) (1) (2) — (4) Accrued liabilities as of December 31, 2016 4 19 40 5 68 2017 (credits) charges for 2016 and prior initiatives (1) 3 2 2 6 2017 charges for 2017 initiatives 10 — — 2 12 2017 payments for 2016 and prior initiatives (1) (21) (2) (2) (26) 2017 payments for 2017 initiatives (8) — — (2) (10) Foreign currency effect on liability balance 1 1 1 — 3 Accrued liabilities as of December 31, 2017 5 2 41 5 53 2018 charges for 2017 and prior initiatives — — 2 — 2 2018 charges for 2018 initiatives 5 — — 10 15 2018 payments for 2017 and prior initiatives (2) (1) (2) — (5) 2018 payments for 2018 initiatives (1) — — (5) (6) Reversal of reserves no longer required (1) — (29) — (30) Accrued liabilities as of December 31, 2018 $ 6 $ 1 $ 12 $ 10 $ 29 (1) The total workforce reduction reserves of $6 million relate to the termination of 50 positions, of which 8 positions had not been terminated as of December 31, 2018. Accrued liabilities remaining at December 31, 2018 and 2017 by year of initiatives were as follows (dollars in millions): December 31, December 31, 2018 2017 2016 and prior initiatives $ 19 $ 51 2017 initiatives 1 2 2018 initiatives 9 — Total $ 29 $ 53 |
Schedule of accrued liabilities by year of initiatives | Accrued liabilities remaining at December 31, 2018 and 2017 by year of initiatives were as follows (dollars in millions): December 31, December 31, 2018 2017 2016 and prior initiatives $ 19 $ 51 2017 initiatives 1 2 2018 initiatives 9 — Total $ 29 $ 53 |
Schedule of details with respect to reserves for restructuring, impairment and plant closing costs, provided by segment and initiative | Details with respect to our reserves for restructuring, impairment and plant closing costs are provided below by segment and initiative (dollars in millions): Performance Advanced Textile Corporate Polyurethanes Products Materials Effects and other Total Accrued liabilities as of January 1, 2016 $ 5 $ 9 $ 4 $ 55 $ 4 $ 77 2016 charges for 2015 and prior initiatives — 16 — 28 3 47 2016 charges for 2016 initiatives 4 — — 1 1 6 Reversal of reserves no longer required (1) — — — (1) (2) Distribution of prefunded restructuring costs — (6) — (5) — (11) 2016 payments for 2015 and prior initiatives (3) (19) — (14) (4) (40) 2016 payments for 2016 initiatives (3) — — (1) (1) (5) Foreign currency effect on liability balance — — (1) (3) — (4) Accrued liabilities as of December 31, 2016 2 — 3 61 2 68 2017 charges for 2016 and prior initiatives — — — 6 — 6 2017 charges for 2017 initiatives — 1 — 7 4 12 2017 payments for 2016 and prior initiatives (1) — — (25) — (26) 2017 payments for 2017 initiatives — — — (5) (5) (10) Foreign currency effect on liability balance — — — 3 — 3 Accrued liabilities as of December 31, 2017 1 1 3 47 1 53 2018 charges (credits) for 2017 and prior initiatives — 1 — (4) 5 2 2018 charges for 2018 initiatives — 2 3 — 10 15 2018 payments for 2017 and prior initiatives (1) (1) — — (3) (5) 2018 payments for 2018 initiatives — (1) — — (5) (6) Reversal of reserves no longer required — — — (29) (1) (30) Accrued liabilities as of December 31, 2018 $ — $ 2 $ 6 $ 14 $ 7 $ 29 Current portion of restructuring reserves $ — $ 2 $ 4 $ 10 $ 7 $ 23 Long-term portion of restructuring reserves — — 2 4 — 6 |
Schedule of cash and noncash restructuring charges | Details with respect to cash and noncash restructuring charges for the years ended December 31, 2018, 2017 and 2016 by initiative are provided below (dollars in millions): Cash charges: 2018 charges for 2017 and prior initiatives $ 2 2018 charges for 2018 initiatives 15 Noncash charges: Reversal of reserves no longer required (30) Other noncash charges 8 Total 2018 restructuring, impairment and plant closing credits $ (5) Cash charges: 2017 charges for 2016 and prior initiatives $ 6 2017 charges for 2017 initiatives 12 Pension-related charges 1 Noncash charges: Accelerated depreciation 2 Other noncash credits (1) Total 2017 restructuring, impairment and plant closing costs $ 20 Cash charges: 2016 charges for 2015 and prior initiatives $ 47 2016 charges for 2016 initiatives 6 Noncash charges: Reversal of reserves no longer required (2) Gain on sale of land (4) Total 2016 restructuring, impairment and plant closing costs $ 47 |
OTHER NONCURRENT LIABILITIES (T
OTHER NONCURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER NONCURRENT LIABILITIES | |
Schedule of components of other noncurrent liabilities | Other noncurrent liabilities consisted of the following (dollars in millions): Huntsman Corporation December 31, 2018 2017 Pension liabilities $ 718 $ 715 Other postretirement benefits 65 73 Employee benefit accrual 32 34 Other 258 264 Total $ 1,073 $ 1,086 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |
OTHER NONCURRENT LIABILITIES | |
Schedule of components of other noncurrent liabilities | December 31, 2018 2017 Pension liabilities $ 718 $ 715 Other postretirement benefits 65 73 Employee benefit accrual 32 34 Other 246 250 Total $ 1,061 $ 1,072 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt | |
Schedule of outstanding debt | Outstanding debt, net of debt issuance costs, of consolidated entities consisted of the following (dollars in millions): Huntsman Corporation December 31, 2018 2017 Revolving credit facility $ 50 $ — Amounts outstanding under A/R programs 252 180 Senior notes 1,892 1,927 Variable interest entities 86 107 Other 40 84 Total debt $ 2,320 $ 2,298 Total current portion of debt $ 96 $ 40 Long-term portion of debt 2,224 2,258 Total debt $ 2,320 $ 2,298 |
Schedule of maturities of debt (excluding debt to affiliates) | The scheduled maturities of our debt (excluding debt to affiliates) by year as of December 31, 2018 are as follows (dollars in millions): Year ending December 31, 2019 $ 96 2020 933 2021 533 2022 402 2023 2 Thereafter 354 $ 2,320 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |
Debt | |
Schedule of outstanding debt | December 31, 2018 2017 Revolving credit facility $ 50 $ — Amounts outstanding under A/R programs 252 180 Senior notes 1,892 1,927 Variable interest entities 86 107 Other 40 84 Total debt, excluding debt to affiliates $ 2,320 $ 2,298 Total current portion of debt $ 96 $ 40 Long-term portion of debt 2,224 2,258 Total debt, excluding debt to affiliates $ 2,320 $ 2,298 Total debt, excluding debt to affiliates $ 2,320 $ 2,298 Notes payable to affiliates-current 100 100 Notes payable to affiliates-noncurrent 488 742 Total debt $ 2,908 $ 3,140 |
Schedule of 2018 Credit Facility | As of December 31, 2018, our 2018 Revolving Credit Facility was as follows (dollars in millions): Unamortized Discounts and Committed Principal Debt Issuance Carrying Facility Amount Outstanding Costs Value Interest Rate(2) Maturity 2018 Revolving Credit Facility $ 1,200 $ 50 $ — $ 50 LIBOR plus 1.75% (1) On December 31, 2018, we had an additional $9 million (U.S. dollar equivalents) of letters of credit and bank guarantees issued and outstanding under our 2018 Revolving Credit Facility. (2) Interest rates on borrowings under the 2018 Revolving Credit Facility vary based on the type of loan and Huntsman International’s debt ratings. The then applicable interest rate as of December 31, 2018 was 1.75% above LIBOR. |
Schedule of A/R Programs | Information regarding our A/R Programs as of December 31, 2018 was as follows (monetary amounts in millions): Maximum Funding Amount Facility Maturity Availability(1) Outstanding Interest Rate(2) U.S. A/R Program April 2020 $ 250 $ 165 (3) Applicable rate plus 0.95% EU A/R Program April 2020 € 150 € 76 Applicable rate plus 1.30% (approximately $171) (approximately $87) (1) The amount of actual availability under our A/R Programs may be lower based on the level of eligible receivables sold, changes in the credit ratings of our customers, customer concentration levels and certain characteristics of the accounts receivable being transferred, as defined in the applicable agreements. (2) Applicable rate for our U.S. A/R Program is defined by the lender as USD LIBOR. Applicable rate for our EU A/R Program is either GBP LIBOR, USD LIBOR or EURIBOR. (3) As of December 31, 2018, we had approximately $5 million (U.S. dollar equivalents) of letters of credit issued and outstanding under our U.S. A/R Program. |
Summary of outstanding notes | As of December 31, 2018, we had outstanding the following notes (monetary amounts in millions): Unamortized Premiums/ Discounts and Debt Notes Maturity Interest Rate Amount Outstanding Issuance Costs 2020 Senior Notes November 2020 4.875 % $650 ($648 carrying value) $ (2) 2021 Senior Notes April 2021 5.125 % €445 (€444 carrying value ($507)) — 2022 Senior Notes November 2022 5.125 % $400 ($398 carrying value) (2) 2025 Senior Notes April 2025 4.250 % €300 (€298 carrying value ($339)) (3) |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
FAIR VALUE | |
Schedule of fair values of financial instruments | The fair values of our financial instruments were as follows (dollars in millions): December 31, 2018 December 31, 2017 Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value Non-qualified employee benefit plan investments $ 23 $ 23 $ 33 $ 33 Forward swap contract related to the sale of investment in Venator 14 14 — — Long-term debt (including current portion) (2,320) (2,403) (2,298) (2,483) |
Schedule of assets and liabilities are measured at fair value on a recurring basis | The following assets are measured at fair value on a recurring basis (dollars in millions): Fair Value Amounts Using Quoted prices Significant other Significant in active markets observable unobservable December 31, for identical inputs inputs Description 2018 assets (Level 1) (Level 2) (Level 3) Assets: Equity securities: Non-qualified employee benefit plan investments $ 23 $ 23 $ — $ — Derivatives: Forward swap contract related to the sale of investment in Venator 14 — 14 — $ 37 $ 23 $ 14 $ — Fair Value Amounts Using Quoted prices Significant other Significant in active markets observable unobservable December 31, for identical inputs inputs Description 2017 assets (Level 1) (Level 2) (Level 3) Assets: Equity securities: Non-qualified employee benefit plan investments $ 33 $ 33 $ — $ — |
Schedule of reconciliation of beginning and ending balances for instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | Cross-Currency Interest Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Rate Contracts Beginning balance, January 1, 2017 $ 29 Transfers into Level 3 — Transfers out of Level 3 — Total (losses) gains: Included in earnings — Included in other comprehensive (loss) income (22) Purchases, sales, issuances and settlements (7) Ending balance, December 31, 2017 $ — The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets still held at December 31, 2017 $ — |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 (dollars in millions): Defined Benefit Plans Other Postretirement Benefit Plans 2018 2017 2018 2017 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Plans Plans Plans Plans Plans Plans Plans Plans Change in benefit obligation Benefit obligation at beginning of year $ 1,153 $ 2,259 $ 1,049 $ 2,064 $ 80 $ — $ 93 $ — Service cost 32 32 30 33 2 — 3 — Interest cost 44 37 44 35 3 — 3 — Participant contributions — 5 — 5 2 — 2 — Plan amendments — 4 — (1) — — — — Foreign currency exchange rate changes — (74) — 207 — — — — Special termination benefits — — — 1 — — — — Settlements/transfers/divestitures (6) (3) — — — — — — Actuarial (gain) loss (81) (30) 91 (10) (9) — (12) — Benefits paid (62) (73) (61) (75) (7) — (9) — Benefit obligation at end of year $ 1,080 $ 2,157 $ 1,153 $ 2,259 $ 71 $ — $ 80 $ — Change in plan assets Fair value of plan assets at beginning of year $ 821 $ 1,883 $ 721 $ 1,639 $ — $ — $ — $ — Actual return on plan assets (38) (38) 104 109 — — — — Foreign currency exchange rate changes — (62) — 166 — — — — Participant contributions — 5 — 5 2 — 2 — Settlements/transfers/divestitures (6) (3) — — — — — — Company contributions 52 39 57 39 5 — 7 — Benefits paid (62) (73) (61) (75) (7) — (9) — Fair value of plan assets at end of year $ 767 $ 1,751 $ 821 $ 1,883 $ — $ — $ — $ — Funded status Fair value of plan assets $ 767 $ 1,751 $ 821 $ 1,883 $ — $ — $ — $ — Benefit obligation 1,080 2,157 1,153 2,259 71 — 80 — Accrued benefit cost $ (313) $ (406) $ (332) $ (376) $ (71) $ — $ (80) $ — Amounts recognized in balance sheet: Noncurrent asset $ — $ 10 $ — $ 22 $ — $ — $ — $ — Current liability (5) (6) (10) (5) (6) — (7) — Noncurrent liability (308) (410) (322) (393) (65) — (73) — $ (313) $ (406) $ (332) $ (376) $ (71) $ — $ (80) $ — |
Schedule of amounts recognized in accumulated other comprehensive loss | Defined Benefit Plans Other Postretirement Benefit Plans 2018 2017 2018 2017 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Plans Plans Plans Plans Plans Plans Plans Plans Amounts recognized in accumulated other comprehensive loss: Net actuarial loss $ 401 $ 784 $ 419 $ 1,000 $ 21 $ — $ 30 $ — Prior service credit (13) (27) (15) (29) (38) — (45) — $ 388 $ 757 $ 404 $ 971 $ (17) $ — $ (15) $ — |
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 of continuing operations during the next fiscal year are as follows (dollars in millions): Huntsman Corporation Other Postretirement Defined Benefit Plans Benefit Plans Non-U.S. Non-U.S. U.S. Plans Plans U.S. Plans Plans Actuarial loss $ 26 $ 45 $ 1 $ — Prior service credit (2) (4) (5) — Total $ 24 $ 41 $ (4) $ — |
Components of the net periodic benefit costs | Components of net periodic benefit costs of continuing operations for the years ended December 31, 2018, 2017 and 2016 were as follows (dollars in millions): Huntsman Corporation Defined Benefit Plans U.S. plans Non-U.S. plans 2018 2017 2016 2018 2017 2016 Service cost $ 32 $ 30 $ 30 $ 32 $ 33 $ 29 Interest cost 44 44 47 37 35 41 Expected return on plan assets (61) (55) (54) (109) (100) (93) Amortization of prior service credit (2) (2) (5) (5) (5) (4) Amortization of actuarial loss 34 30 25 38 45 31 Settlement loss 2 — — — — — Special termination benefits — — — — 1 — Net periodic benefit cost $ 49 $ 47 $ 43 $ (7) $ 9 $ 4 Other Postretirement Benefit Plans U.S. plans Non-U.S. plans 2018 2017 2016 2018 2017 2016 Service cost $ 2 $ 3 $ 2 $ — $ — $ — Interest cost 3 3 4 — — — Amortization of prior service credit (6) (6) (7) — — — Amortization of actuarial loss 2 3 2 — — — Net periodic benefit cost $ 1 $ 3 $ 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 income (loss) as of December 31, 2018, 2017 and 2016 were as follows (dollars in millions): Huntsman Corporation Defined Benefit Plans U.S. plans Non-U.S. plans 2018 2017 2016 2018 2017 2016 Current year actuarial loss (gain) $ 18 $ 42 $ 74 $ 117 $ (42) $ 235 Amortization of actuarial loss (34) (30) (25) (38) (61) (42) Current year prior service (credit) cost — — — 4 (2) — Amortization of prior service credit 2 2 5 5 4 4 Settlements (2) — — — — — Curtailment (gain)/loss — — — — 3 — Total recognized in other comprehensive income (loss) (16) 14 54 88 (98) 197 Amounts related to discontinued operations — 3 — — 37 (65) Total recognized in other comprehensive income (loss) in continuing operations (16) 17 54 88 (61) 132 Net periodic benefit cost 49 47 43 (7) 9 4 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 33 $ 64 $ 97 $ 81 $ (52) $ 136 Other Postretirement Benefit Plans U.S. plans Non-U.S. plans 2018 2017 2016 2018 2017 2016 Current year actuarial (gain) loss $ (10) $ (12) $ 9 $ — $ — $ — Amortization of actuarial loss (2) (3) (2) — (1) — Current year prior service credit — — — — — (2) Amortization of prior service credit 6 6 7 — 2 — Total recognized in other comprehensive income (loss) (6) (9) 14 — 1 (2) Amounts related to discontinued operations — — (1) — (1) 3 Total recognized in other comprehensive income (loss) in continuing operations (6) (9) 13 — — 1 Net periodic benefit cost 1 3 1 — — — Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (5) $ (6) $ 14 $ — $ — $ 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 2018 2017 2016 2018 2017 2016 Projected benefit obligation Discount rate 4.39 % 3.74 % 4.24 % 1.75 % 1.65 % 1.61 % Rate of compensation increase 4.13 % 4.13 % 4.17 % 2.64 % 3.38 % 3.37 % Net periodic pension cost Discount rate 3.74 % 4.24 % 4.90 % 1.65 % 1.61 % 2.15 % Rate of compensation increase 4.13 % 4.17 % 4.17 % 3.38 % 3.37 % 3.28 % Expected return on plan assets 7.55 % 7.55 % 7.54 % 5.88 % 5.68 % 5.91 % Other Postretirement Benefit Plans U.S. plans Non-U.S. plans 2018 2017 2016 2018 2017 2016 Projected benefit obligation Discount rate 4.26 % 3.57 % 4.03 % 3.50 % 3.30 % 3.50 % Net periodic pension cost Discount rate 3.57 % 4.03 % 4.68 % 3.30 % 3.50 % 3.70 % |
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 (2) |
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, 2018 and 2017 were as follows (dollars in millions): U.S. plans Non-U.S. plans 2018 2017 2018 2017 Projected benefit obligation in excess of plan assets Projected benefit obligation $ 1,080 $ 1,153 $ 1,790 $ 1,213 Fair value of plan assets 767 821 1,375 815 |
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, 2018 and 2017 were as follows (dollars in millions): U.S. plans Non-U.S. plans 2018 2017 2018 2017 Accumulated benefit obligation in excess of plan assets Projected benefit obligation $ 1,080 $ 1,153 $ 986 $ 1,026 Accumulated benefit obligation 1,057 1,127 919 957 Fair value of plan assets 767 821 608 638 |
Schedule of expected future contributions and benefit payments | Expected future contributions and benefit payments related to continuing operations are as follows (dollars in millions): U.S. Plans Non-U.S. Plans Other Other Defined Postretirement Defined Postretirement Benefit Benefit Benefit Benefit Plans Plans Plans Plans 2019 expected employer contributions To plan trusts $ 50 $ 6 $ 38 $ — Expected benefit payments 2019 72 6 69 — 2020 63 6 69 — 2021 63 6 73 — 2022 67 6 75 — 2023 114 6 80 — 2024 - 2028 376 30 428 — |
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 Quoted prices in active Significant other Significant December 31, markets for identical observable inputs unobservable inputs Asset category 2018 assets (Level 1) (Level 2) (Level 3) U.S. pension plans: Equities $ 382 $ 275 $ 107 $ — Fixed income 311 240 71 — Real estate/other 74 — — 74 Cash — — — — Total U.S. pension plan assets $ 767 $ 515 $ 178 $ 74 Non-U.S. pension plans: Equities $ 471 $ 161 $ 310 $ — Fixed income 747 496 251 — Real estate/other 497 93 348 56 Cash 36 36 — — Total Non-U.S. pension plan assets $ 1,751 $ 786 $ 909 $ 56 Fair Value Amounts Using Quoted prices in active Significant other Significant December 31, Markets for identical Observable inputs Unobservable inputs Asset category 2017 assets (Level 1) (Level 2) (Level 3) U.S. pension plans: Equities $ 440 $ 318 $ 122 $ — Fixed income 311 239 72 — Real estate/other 70 — — 70 Cash — — — — Total U.S. pension plan assets $ 821 $ 557 $ 194 $ 70 Non-U.S. pension plans: Equities $ 602 $ 230 $ 372 $ — Fixed income 739 477 262 — Real estate/other 508 104 349 55 Cash 34 33 1 — Total Non-U.S. pension plan assets $ 1,883 $ 844 $ 984 $ 55 |
Schedule of asset allocation for pension plans and the target allocation, by asset category | Target Allocation Allocation at December 31, Asset category 2019 2018 2017 U.S. pension plans: Equities 53 % 50 % 54 % Fixed income 39 % 41 % 38 % Real estate/other 8 % 9 % 8 % Cash — % — % — Total U.S. pension plans 100 % 100 % 100 % Non-U.S. pension plans: Equities 37 % 27 % 32 % Fixed income 41 % 43 % 39 % Real estate/other 13 % 28 % 27 % Cash 9 % 2 % 2 % Total non-U.S. pension plans 100 % 100 % 100 % |
Real Estate/Other | |
EMPLOYEE BENEFIT PLANS | |
Schedule of reconciliation of the beginning and ending balances of plan assets measured at fair value using unobservable inputs (level 3) | The following table Real Estate/Other Year ended December 31, 2018 2017 Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) Balance at beginning of period $ 125 $ 106 Return on pension plan assets 5 14 Purchases, sales and settlements — 5 Transfers into (out of) Level 3 — — Balance at end of period $ 130 $ 125 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |
EMPLOYEE BENEFIT PLANS | |
Schedule of amounts recognized in accumulated other comprehensive loss | Defined Benefit Plans Other Postretirement Benefit Plans 2018 2017 2018 2017 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Plans Plans Plans Plans Plans Plans Plans Plans Amounts recognized in accumulated other comprehensive loss: Net actuarial loss $ 402 $ 793 $ 420 1,030 $ 21 $ — $ 30 $ — Prior service credit (13) (27) (15) (29) (38) — (45) — $ 389 $ 766 $ 405 $ 1,001 $ (17) $ — $ (15) $ — |
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 | Other Postretirement Defined Benefit Plans Benefit Plans Non-U.S. Non-U.S. U.S. Plans Plans U.S. Plans Plans Actuarial loss $ 27 $ 48 $ 1 $ — Prior service credit (2) (4) (5) — Total $ 25 $ 44 $ (4) $ — |
Components of the net periodic benefit costs | Defined Benefit Plans U.S. plans Non-U.S. plans 2018 2017 2016 2018 2017 2016 Service cost $ 32 $ 30 $ 30 $ 32 $ 33 $ 29 Interest cost 44 44 47 37 35 41 Expected return on plan assets (61) (55) (54) (109) (100) (93) Amortization of prior service credit (2) (2) (5) (5) (5) (4) Amortization of actuarial loss 34 30 25 41 48 34 Settlement loss 2 — — — — — Special termination benefits — — — — 1 — Net periodic benefit cost $ 49 $ 47 $ 43 $ (4) $ 12 $ 7 Other Postretirement Benefit Plans U.S. plans Non-U.S. plans 2018 2017 2016 2018 2017 2016 Service cost $ 2 $ 3 $ 2 $ — $ — $ — Interest cost 3 3 4 — — — Amortization of prior service credit (6) (6) (7) — — — Amortization of actuarial loss 2 3 2 — — — Net periodic benefit cost $ 1 $ 3 $ 1 $ — $ — $ — |
Schedule of amounts recognized in net periodic benefit cost and other comprehensive (loss) income | Defined Benefit Plans U.S. plans Non-U.S. plans 2018 2017 2016 2018 2017 2016 Current year actuarial loss (gain) $ 18 $ 42 $ 74 $ 117 $ (42) $ 235 Amortization of actuarial loss (34) (30) (25) (41) (68) (49) Current year prior service credit — — — 4 (2) — Amortization of prior service credit 2 2 5 5 4 4 Settlements (2) — — — — — Curtailment (gain)/loss — — — — 3 — Total recognized in other comprehensive income (loss) (16) 14 54 85 (105) 190 Amounts related to discontinued operations — 3 — — 42 (61) Total recognized in other comprehensive income (loss) in continuing operations (16) 17 54 85 (63) 129 Net periodic benefit cost 49 47 43 (4) 12 7 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 33 $ 64 $ 97 $ 81 $ (51) $ 136 Other Postretirement Benefit Plans U.S. plans Non-U.S. plans 2018 2017 2016 2018 2017 2016 Current year actuarial (gain) loss $ (10) $ (12) $ 9 $ — $ — $ — Amortization of actuarial loss (2) (3) (2) — (1) — Current year prior service credit — — — — — (2) Amortization of prior service credit 6 6 7 — 2 — Total recognized in other comprehensive income (loss) (6) (9) 14 — 1 (2) Amounts related to discontinued operations — — (1) — (1) 3 Total recognized in other comprehensive income (loss) in continuing operations (6) (9) 13 — — 1 Net periodic benefit cost 1 3 1 — — — Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (5) $ (6) $ 14 $ — $ — $ 1 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax | |
Schedule of income tax expense (benefit) | The following is a summary of U.S. and non‑U.S. provisions for current and deferred income taxes (dollars in millions): Huntsman Corporation Year ended December 31, 2018 2017 2016 Income tax expense (benefit): U.S. Current $ 57 $ 23 $ 50 Deferred 19 (95) (15) Non-U.S. Current 155 94 55 Deferred (134) 42 19 Total $ 97 $ 64 $ 109 |
Schedule of reconciliation of the differences between the U.S. federal income taxes at the U.S. statutory rate to total provision for income taxes | The following schedule reconciles the differences between the U.S. federal income taxes at the U.S. statutory rate to our provision for income taxes (dollars in millions): Huntsman Corporation Year ended December 31, 2018 2017 2016 Income from continuing operations before income taxes $ 942 $ 647 $ 474 Expected tax expense at U.S. statutory rate of 21%, 35% and 35% respectively $ 198 $ 227 $ 166 Change resulting from: State tax expense net of federal benefit 5 (2) (1) Non-U.S. tax rate differentials 29 (64) (32) Non-taxable portion of gain on sale of European surfactants business — — (23) U.S. Tax Reform Act impact 32 (52) — Currency exchange gains/losses (net) (10) 15 (5) Non-U.S. income subject to U.S. tax not offset by U.S. foreign tax credits 16 — — Tax authority audits and dispute resolutions 5 9 2 Share-based compensation excess tax benefits (14) (10) — Change in valuation allowance (185) (72) (38) Fair value adjustments to Venator investment 18 — — Impact of equity method investments (14) (3) (1) Other non-U.S. tax effects, including nondeductible expenses, tax effect of rate changes, transfer pricing adjustments and various withholding taxes 17 7 31 Other U.S. tax effects, including nondeductible expenses and other credits — 9 10 Total income tax expense $ 97 $ 64 $ 109 |
Schedule of components of income (loss) from continuing operations before income taxes | The components of income (loss) from continuing operations before income taxes were as follows (dollars in millions): Huntsman Corporation Year ended December 31, 2018 2017 2016 U.S. $ 165 $ (39) $ 91 Non-U.S. 777 686 383 Total $ 942 $ 647 $ 474 |
Schedule of components of deferred income tax assets and liabilities | Components of deferred income tax assets and liabilities were as follows (dollars in millions): Huntsman Corporation December 31, 2018 2017 Deferred income tax assets: Net operating loss carryforwards $ 359 $ 411 Pension and other employee compensation 198 205 Property, plant and equipment 20 29 Intangible assets 79 88 Unrealized currency gains — 8 Other, net 45 46 Total $ 701 $ 787 Deferred income tax liabilities: Property, plant and equipment $ (363) $ (351) Pension and other employee compensation — (3) Intangible assets (34) (7) Unrealized currency losses (37) (27) Other, net (12) (31) Total $ (446) $ (419) Net deferred tax asset before valuation allowance $ 255 $ 368 Valuation allowance—net operating losses and other (227) (424) Net deferred tax asset (liability) $ 28 $ (56) Non-current deferred tax asset 324 208 Non-current deferred tax liability (296) (264) Net deferred tax asset (liability) $ 28 $ (56) |
Schedule of changes in valuation allowance | The following is a summary of changes in the valuation allowance (dollars in millions): Huntsman Corporation 2018 2017 2016 Valuation allowance as of January 1 $ 424 $ 496 $ 526 Valuation allowance as of December 31 227 424 496 Net (increase) decrease 197 72 30 Foreign currency movements 3 11 (11) (Decrease) increase to deferred tax assets with no impact on operating tax expense, including an offsetting (decrease) increase to valuation allowances (15) (11) 19 Change in valuation allowance per rate reconciliation $ 185 $ 72 $ 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 $ 53 $ 50 $ 31 Releases of valuation allowances in various jurisdictions 132 22 19 Establishments of valuation allowances in various jurisdictions — — (12) Change in valuation allowance per rate reconciliation $ 185 $ 72 $ 38 |
Schedule of reconciliation of unrecognized tax benefits | The following is a reconciliation of our unrecognized tax benefits (dollars in millions): 2018 2017 Unrecognized tax benefits as of January 1 $ 23 $ 17 Gross increases and decreases—tax positions taken during a prior period 1 3 Gross increases and decreases—tax positions taken during the current period 3 4 Decreases related to settlements of amounts due to tax authorities — — Reductions resulting from the lapse of statutes of limitation — (2) Foreign currency movements (1) 1 Unrecognized tax benefits as of December 31 $ 26 $ 23 |
Schedule of interest and penalties accrued related to unrecognized tax benefits included in the income tax expense | Year ended December 31, 2018 2017 2016 Interest expense included in tax expense $ — $ — $ 1 Penalties expense included in tax expense — — — December 31, 2018 2017 Accrued liability for interest $ 3 $ 3 Accrued liability for penalties — — |
Summary of the tax years that remain subject to examination by major tax jurisdictions | Tax Jurisdiction Open Tax Years China 2009 and later Hong Kong 2015 and later Germany 2013 and later India 2004 and later Italy 2014 and later Mexico 2013 and later Switzerland 2011 and later Thailand 2012 and later The Netherlands 2015 and later United Kingdom 2017 and later United States federal 2017 and later |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |
Income Tax | |
Schedule of income tax expense (benefit) | Year ended December 31, 2018 2017 2016 Income tax expense (benefit): U.S. Current $ 57 $ 16 $ 50 Deferred 15 (92) (16) Non-U.S. Current 155 94 55 Deferred (134) 43 19 Total $ 93 $ 61 $ 108 |
Schedule of reconciliation of the differences between the U.S. federal income taxes at the U.S. statutory rate to total provision for income taxes | Year ended December 31, 2018 2017 2016 Income from continuing operations before income taxes $ 924 $ 640 $ 475 Expected tax expense at U.S. statutory rate of 21%, 35% and 35% respectively $ 194 $ 224 $ 165 Change resulting from: State tax expense net of federal benefit 5 (2) (1) Non-U.S. tax rate differentials 29 (64) (32) Non-taxable portion of gain on sale of European surfactants business — — (23) U.S. Tax Reform Act impact 32 (53) — Currency exchange gains/losses (net) (10) 15 (5) Non-U.S. income subject to U.S. tax not offset by U.S. foreign tax credits 16 — — Tax authority audits and dispute resolutions 5 9 2 Share-based compensation excess tax benefits (14) (10) — Change in valuation allowance (185) (72) (39) Fair value adjustments to Venator investment 18 — — Impact of equity method investments (14) (3) (1) Other non-U.S. tax effects, including nondeductible expenses, tax effect of rate changes, transfer pricing adjustments and various withholding taxes 17 8 33 Other U.S. tax effects, including nondeductible expenses and other credits — 9 9 Total income tax expense $ 93 $ 61 $ 108 |
Schedule of components of income (loss) from continuing operations before income taxes | Year ended December 31, 2018 2017 2016 U.S. $ 147 $ (46) $ 92 Non-U.S. 777 686 383 Total $ 924 $ 640 $ 475 |
Schedule of components of deferred income tax assets and liabilities | December 31, 2018 2017 Deferred income tax assets: Net operating loss carryforwards $ 359 $ 411 Pension and other employee compensation 198 205 Property, plant and equipment 20 29 Intangible assets 79 88 Unrealized currency gains — 8 Other, net 45 46 Total $ 701 $ 787 Deferred income tax liabilities: Property, plant and equipment $ (363) $ (351) Pension and other employee compensation — (3) Intangible assets (34) (7) Unrealized currency losses (37) (27) Other, net (10) (32) Total $ (444) $ (420) Net deferred tax asset before valuation allowance $ 257 $ 367 Valuation allowance—net operating losses and other (227) (424) Net deferred tax asset (liability) $ 30 $ (57) Non-current deferred tax asset 324 208 Non-current deferred tax liability (294) (265) Net deferred tax asset (liability) $ 30 $ (57) |
Schedule of changes in valuation allowance | 2018 2017 2016 Valuation allowance as of January 1 $ 424 $ 499 $ 530 Valuation allowance as of December 31 227 424 499 Net (increase) decrease 197 75 31 Foreign currency movements 3 11 (11) (Decrease) increase to deferred tax assets with no impact on operating tax expense, including an offsetting (decrease) increase to valuation allowances (15) (14) 19 Change in valuation allowance per rate reconciliation $ 185 $ 72 $ 39 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 $ 53 $ 49 $ 32 Releases of valuation allowances in various jurisdictions 132 23 19 Establishments of valuation allowances in various jurisdictions — — (12) Change in valuation allowance per rate reconciliation $ 185 $ 72 $ 39 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of total purchase commitments | Total purchase commitments as of December 31, 2018 are as follows (dollars in millions): Year ending December 31, 2019 $ 1,424 2020 855 2021 666 2022 629 2023 414 Thereafter 1,794 $ 5,782 |
Schedule of future minimum lease payments under operating leases | Future minimum lease payments under operating leases as of December 31, 2018 are as follows (dollars in millions): Year ending December 31, 2019 $ 59 2020 53 2021 52 2022 49 2023 45 Thereafter 234 $ 492 |
HUNTSMAN CORPORATION STOCKHOL_2
HUNTSMAN CORPORATION STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
HUNTSMAN CORPORATION STOCKHOLDERS’ EQUITY | |
Schedule of dividends on common stock | The following tables represent dividends on common stock for our Company for the years ended December 31, 2018 and 2017 (dollars in millions, except per share payment amounts): 2018 Approximate Per share amount Quarter ended payment amount paid March 31, 2018 $ 0.1625 $ 39 June 30, 2018 0.1625 39 September 30, 2018 0.1625 39 December 31, 2018 0.1625 39 2017 Approximate Per share amount Quarter ended payment amount paid March 31, 2017 $ 0.125 $ 30 June 30, 2017 0.125 30 September 30, 2017 0.125 30 December 31, 2017 0.125 30 |
STOCK-BASED COMPENSATION PLAN (
STOCK-BASED COMPENSATION PLAN (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
STOCK-BASED COMPENSATION PLAN | |
Schedule of compensation cost under the 2016 Stock Incentive Plan and the Prior Plan | The compensation cost under the 2016 Stock Incentive Plan and the Prior Plan for our Company and Huntsman International were as follows (dollars in millions): Year ended December 31, 2018 2017 2016 Huntsman Corporation compensation cost $ 27 $ 36 $ 32 Huntsman International compensation cost 26 35 31 |
Schedule of assumptions used to calculate fair value of each stock option award estimated on the date of grant using the Black-Scholes valuation model | Year ended December 31, 2018 2017 2016 Dividend yield 1.6 % 2.4 % 5.6 % Expected volatility 55.2 % 56.9 % 57.9 % Risk-free interest rate 2.6 % 2.0 % 1.4 % Expected life of stock options granted during the period 5.9 years 5.9 years 5.9 years |
Summary of stock option activity under the 2016 Stock Incentive Plan and the Prior Plan | Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Option Awards Shares Price Term Value (in thousands) (years) (in millions) Outstanding at January 1, 2018 7,988 $ 13.99 Granted 509 32.51 Exercised (3,873) 11.85 Forfeited (79) 18.70 Outstanding at December 31, 2018 4,545 17.81 6.5 $ 18 Exercisable at December 31, 2018 2,816 17.02 5.6 10 |
Summary of status of nonvested shares | Equity Awards Liability Awards Weighted Weighted Average Average Grant-Date Grant-Date Shares Fair Value Shares Fair Value (in thousands) (in thousands) Nonvested at January 1, 2018 2,457 $ 14.93 696 $ 14.69 Granted 435 35.04 169 32.77 Vested (840) (1) 15.67 (337) 14.70 Forfeited (129) 16.22 (24) 16.66 Nonvested at December 31, 2018 1,923 19.08 504 20.66 (1) As of December 31, 2018, a total of 358,609 restricted stock units were vested but not yet issued, of which 15,922 vested during 2018. These shares have not been reflected as vested shares in this table because, in accordance with the restricted stock unit agreements, shares of common stock are not issued for vested restricted stock units until termination of employment. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
REVENUE RECOGNITION | |
Schedule of disaggregation of revenue by major source | The following table disaggregates our revenue by major source for the year ended December 31, 2018 (dollars in millions): Polyurethanes Performance Products Advanced Materials Textile Effects Eliminations Total Primary Geographic Markets(1) U.S. and Canada $ 1,700 $ 1,305 285 $ 68 $ 31 $ 3,389 Europe 1,278 423 445 135 (17) 2,264 Asia Pacific 1,236 432 301 485 (23) 2,431 Rest of world 880 195 85 136 (1) 1,295 $ 5,094 $ 2,355 $ 1,116 $ 824 $ (10) $ 9,379 Major Product Groupings MDI urethanes $ 4,525 $ 4,525 MTBE 569 569 Differentiated $ 2,120 2,120 Upstream 235 235 Specialty $ 932 932 Non-specialty 184 184 Textile chemicals and dyes and digital inks $ 824 824 Eliminations $ (10) (10) $ 5,094 $ 2,355 $ 1,116 $ 824 $ (10) $ 9,379 (a) Geographic information for revenues is based upon countries into which product is sold. |
OTHER COMPREHENSIVE INCOME (L_2
OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER COMPREHENSIVE INCOME | |
Schedule of other comprehensive loss | Other comprehensive loss consisted of the following (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(a) adjustments(b) affiliates Other, net Total interests Corporation Beginning balance, January 1, 2018 $ (249) $ (1,189) $ 3 $ 24 $ (1,411) $ 143 $ (1,268) Cumulative effect of changes in fair value of equity investments — — — (10) (10) — (10) Revised beginning balance, January 1, 2018 (249) (1,189) 3 14 (1,421) 143 (1,278) Other comprehensive (loss) income before reclassifications, gross (186) (130) — — (316) 47 (269) Tax (expense) benefit (6) 27 — (3) 18 — 18 Amounts reclassified from accumulated other comprehensive loss, gross(c) — 77 — — 77 — 77 Tax expense — (13) — (6) (19) — (19) Net current-period other comprehensive (loss) income (192) (39) — (9) (240) 47 (193) Disposition of a portion of Venator — — — — — (5) (5) Deconsolidation of Venator 70 285 5 — 360 (149) 211 Tax expense — (51) — — (51) — (51) Ending balance, December 31, 2018 $ (371) $ (994) $ 8 $ 5 $ (1,352) $ 36 $ (1,316) (a) Amounts are net of tax of $71 and $65 as of December 31, 2018 and January 1, 2018, respectively. (b) Amounts are net of tax of $135 and $172 as of December 31, 2018 and January 1, 2018, respectively. (c) 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(a) adjustments(b) affiliates Other, net Total interests Corporation Beginning balance, January 1, 2017 $ (459) $ (1,275) $ 4 $ 23 $ (1,707) $ 36 $ (1,671) Other comprehensive income (loss) before reclassifications, gross 175 11 (1) 9 194 (22) 172 Tax benefit 35 9 — 2 46 — 46 Amounts reclassified from accumulated other comprehensive loss, gross(c) — 80 — (10) 70 — 70 Tax expense — (14) — — (14) — (14) Net current-period other comprehensive income (loss) 210 86 (1) 1 296 (22) 274 Disposition of a portion of Venator — — — — — 129 129 Ending balance, December 31, 2017 $ (249) $ (1,189) $ 3 $ 24 $ (1,411) $ 143 $ (1,268) (a) Amounts are net of tax of $65 and $100 as of December 31, 2017 and January 1, 2017, respectively. (b) Amounts are net of tax of $172 and $177 as of December 31, 2017 and January 1, 2017, respectively. (c) See table below for details about these reclassifications. |
Schedule of details about reclassifications from other comprehensive loss | Year ended December 31, 2018 2017 2016 Amounts reclassified Amounts reclassified Amounts reclassified Affected line item in from accumulated from accumulated from accumulated the statement Details about Accumulated Other other other other where net income Comprehensive Loss Components(a): comprehensive loss comprehensive loss comprehensive loss is presented Amortization of pension and other postretirement benefits: Prior service credit $ (12) $ (15) $ (16) (b) Settlement loss 2 — — (b) Actuarial loss 87 95 69 (b)(c) 77 80 53 Total before tax (13) (14) (15) Income tax expense Total reclassifications for the period $ 64 $ 66 $ 38 Net of tax (a) (b) (c) |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |
OTHER COMPREHENSIVE INCOME | |
Schedule of other comprehensive loss | Huntsman International Foreign Pension Other Other, net Total Amounts Amounts Beginning balance, January 1, 2018 $ (252) $ (1,174) $ 3 $ 17 $ (1,406) $ 143 $ (1,263) Cumulative effect of changes in fair value of equity investments — — — (10) (10) — (10) Revised beginning balance, January 1, 2018 (252) (1,174) 3 7 (1,416) 143 (1,273) Other comprehensive (loss) income before reclassifications, gross (188) (130) — — (318) 47 (271) Tax (expense) benefit (6) 27 — (1) 20 — 20 Amounts reclassified from accumulated other comprehensive loss, gross(c) — 80 — — 80 — 80 Tax expense — (14) — (5) (19) — (19) Net current-period other comprehensive (loss) income (194) (37) — (6) (237) 47 (190) Disposition of a portion of Venator — — — — — (5) (5) Deconsolidation of Venator 70 285 5 — 360 (149) 211 Tax expense — (51) — — (51) — (51) Ending balance, December 31, 2018 $ (376) $ (977) $ 8 $ 1 $ (1,344) $ 36 $ (1,308) (a) Amounts are net of tax of $57 and $51 as of December 31, 2018 and January 1, 2018, respectively. (b) Amounts are net of tax of $161 and $199 as of December 31, 2018 and January 1, 2018, respectively. (c) See table below for details about these reclassifications. Foreign Pension Other Other, net Total Amounts Amounts Beginning balance, January 1, 2017 $ (462) $ (1,286) $ 4 $ 17 $ (1,727) $ 36 $ (1,691) Other comprehensive income before reclassifications, gross 175 12 (1) 8 194 (22) 172 Tax benefit (expense) 35 9 — 2 46 — 46 Amounts reclassified from accumulated other comprehensive loss, gross(c) — 86 — (10) 76 — 76 Contribution of other comprehensive income from Parent — 20 — — 20 — 20 Tax expense — (15) — — (15) — (15) Net current-period other comprehensive income (loss) 210 112 (1) — 321 (22) 299 Disposition of a portion of Venator — — — — — 129 129 Ending balance, December 31, 2017 $ (252) $ (1,174) $ 3 $ 17 $ (1,406) $ 143 $ (1,263) (a) Amounts are net of tax of $51 and $86 as of December 31, 2017 and January 1, 2017, respectively. (b) Amounts are net of tax of $199 and $205 as of December 31, 2017 and January 1, 2017, respectively. (c) See table below for details about these reclassifications. |
Schedule of details about reclassifications from other comprehensive loss | Year ended December 31, 2018 2017 2016 Amounts reclassified Amounts reclassified Amounts reclassified Affected line item in from accumulated from accumulated from accumulated the statement Details about Accumulated Other other other other where net income Comprehensive Loss Components(a): comprehensive loss comprehensive loss comprehensive loss is presented Amortization of pension and other postretirement benefits: Prior service credit $ (12) $ (15) $ (16) (b) Settlement loss 2 — — (b) Actuarial loss 90 101 77 (b)(c) 80 86 61 Total before tax (14) (15) (16) Income tax expense Total reclassifications for the period $ 66 $ 71 $ 45 Net of tax (a) Pension and other postretirement benefits amounts in parentheses indicate credits on our consolidated statements of operations. (b) These accumulated other comprehensive loss components are included in the computation of net periodic pension costs. See “Note 17. Employee Benefit Plans.” (c) Amounts contain approximately $16 million and $24 million and $18 million of prior service credit and actuarial loss related to discontinued operations for the years ended December 31, 2018, 2017 and 2016, respectively. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
RELATED PARTY TRANSACTIONS | |
Schedule of transactions with affiliates | Our consolidated financial statements include the following transactions with our affiliates not otherwise disclosed (dollars in millions): Year ended December 31, 2018 2017 2016 Sales to: Unconsolidated affiliates $ 159 $ 150 $ 131 Inventory purchases from: Unconsolidated affiliates 417 280 243 |
OPERATING SEGMENT INFORMATION (
OPERATING SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OPERATING SEGMENT INFORMATION | |
Schedule of major products by reportable operating segment | Segment Products Polyurethanes MDI, PO, polyols, PG, TPU, aniline and MTBE Performance Products Amines, surfactants, LAB, maleic anhydride, other performance chemicals, EG, olefins and technology licenses Advanced Materials Basic liquid and solid epoxy resins; specialty resin compounds; cross-linking, matting and curing agents; epoxy, acrylic and polyurethane-based formulations Textile Effects Textile chemicals, dyes and digital inks |
Schedule of revenues and EBITDA for each of the entity's reportable operating segments and reconciliation of adjusted EBITDA to net income | The revenues and adjusted EBITDA for each of our reportable operating segments are as follows (dollars in millions): Year ended December 31, 2018 2017 2016 Revenues: Polyurethanes $ 5,094 $ 4,399 $ 3,667 Performance Products 2,355 2,109 2,126 Advanced Materials 1,116 1,040 1,020 Textile Effects 824 776 751 Corporate and eliminations (10) 34 (46) Total $ 9,379 $ 8,358 $ 7,518 Huntsman Corporation: Segment adjusted EBITDA(1): Polyurethanes $ 946 $ 850 $ 569 Performance Products 367 296 316 Advanced Materials 225 219 223 Textile Effects 101 83 73 Corporate and other(2) (170) (189) (184) Total 1,469 1,259 997 Reconciliation of adjusted EBITDA to net income: Interest expense—continuing operations (115) (165) (203) Interest (expense) income—discontinued operations (36) (19) 1 Income tax expense—continuing operations (97) (64) (109) Income tax (expense) benefit—discontinued operations (34) (67) 24 Depreciation and amortization—continuing operations (343) (319) (318) Depreciation and amortization—discontinued operations — (68) (114) Net income attributable to noncontrolling interests 313 105 31 Other adjustments: Business acquisition and integration expenses (5) (19) (12) Purchase accounting inventory adjustments (4) — — Merger costs (2) (28) — EBITDA from discontinued operations (125) 312 81 Noncontrolling interest of discontinued operations (232) (49) (11) Fair value adjustments to Venator investment (62) — — Loss on early extinguishment of debt (3) (54) (3) Certain legal settlements and related (expenses) income (6) 11 (1) Gain on sale of assets — 9 97 Amortization of pension and postretirement actuarial losses (71) (73) (55) Plant incident remediation costs (1) (16) — U.S. Tax Reform Act impact on noncontrolling interest — 6 — Restructuring, impairment and plant closing and transition credits (costs) 4 (20) (48) Net income $ 650 $ 741 $ 357 Year ended December 31, 2018 2017 2016 Depreciation and Amortization: Polyurethanes $ 129 $ 116 $ 114 Performance Products 145 137 132 Advanced Materials 37 33 35 Textile Effects 16 14 15 Corporate and other 16 19 22 Total $ 343 $ 319 $ 318 Year ended December 31, 2018 2017 2016 Capital Expenditures: Polyurethanes $ 168 $ 162 $ 143 Performance Products 95 79 131 Advanced Materials 21 21 16 Textile Effects 21 16 19 Corporate and other 8 4 9 Total $ 313 $ 282 $ 318 December 31, 2018 2017 2016 Total Assets: Polyurethanes $ 3,427 $ 3,112 $ 2,677 Performance Products 2,088 2,069 2,046 Advanced Materials 796 796 728 Textile Effects 571 564 523 Corporate and other 1,071 823 975 Total $ 7,953 $ 7,364 $ 6,949 (1) We use segment adjusted EBITDA as the measure of each segment’s profit or loss. We believe that segment adjusted EBITDA more accurately reflects what management uses to make decisions about resources to be allocated to the segments and assess their financial performance. Segment adjusted EBITDA is defined as net income of Huntsman Corporation or Huntsman International, as appropriate, before interest, income tax, depreciation and amortization, net income attributable to noncontrolling interests and certain Corporate and other items, as well as eliminating the following adjustments: (a) business acquisition and integration expenses; (b) merger costs; (c) EBITDA from discontinued operations; (d) noncontrolling interest of discontinued operations; (e) fair value adjustments to Venator investment; (f) loss on early extinguishment of debt; (g) certain legal settlements and related income (expenses); (h) gain (loss) on sale of assets; (i) amortization of pension and postretirement actuarial losses; (j) plant incident remediation costs; (k) U.S. Tax Reform Act impact on noncontrolling interest; and (l) restructuring, impairment, plant closing and transition credits (costs). (2) Corporate and other includes unallocated corporate overhead, unallocated foreign exchange gains and losses, LIFO inventory valuation reserve adjustments, nonoperating income and expense, benzene sales and gains and losses on the disposition of corporate assets. |
Schedule of revenues and long-lived assets by geographical area | Year ended December 31, 2018 2017 2016 Revenues by geographic area(1): United States $ 3,160 $ 2,729 $ 2,514 China 1,281 1,147 908 Mexico 587 481 433 Germany 537 508 466 Other nations 3,814 3,493 3,197 Total $ 9,379 $ 8,358 $ 7,518 December 31, 2018 2017 2016 Long-lived assets(2): Huntsman Corporation United States $ 1,637 $ 1,597 $ 1,570 The Netherlands 331 343 294 China 247 268 235 Saudi Arabia 161 172 185 Germany 143 163 136 Switzerland 108 112 110 Singapore 96 100 110 Other nations 341 343 394 Total $ 3,064 $ 3,098 $ 3,034 Huntsman International United States $ 1,637 $ 1,594 $ 1,548 The Netherlands 331 343 294 China 247 268 235 Saudi Arabia 161 172 185 Germany 143 163 136 Switzerland 108 112 110 Singapore 96 100 110 Other nations 341 343 394 Total $ 3,064 $ 3,095 $ 3,012 (1) Geographic information for revenues is based upon countries into which product is sold. (2) Long‑lived assets consist of property, plant and equipment, net. |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |
OPERATING SEGMENT INFORMATION | |
Schedule of revenues and EBITDA for each of the entity's reportable operating segments and reconciliation of adjusted EBITDA to net income | Year ended December 31, Huntsman International: 2018 2017 2016 Segment adjusted EBITDA(1): Polyurethanes $ 946 $ 850 $ 569 Performance Products 367 296 316 Advanced Materials 225 219 223 Textile Effects 101 83 73 Corporate and other(2) (166) (185) (180) Total 1,473 1,263 1,001 Reconciliation of adjusted EBITDA to net income: Interest expense—continuing operations (136) (181) (215) Interest (expense) income—discontinued operations (36) (19) 1 Income tax expense—continuing operations (93) (61) (108) Income tax (expense) benefit—discontinued operations (34) (67) 24 Depreciation and amortization—continuing operations (340) (311) (306) Depreciation and amortization—discontinued operations — (68) (114) Net income attributable to noncontrolling interests 313 105 31 Other adjustments: Business acquisition and integration expenses (5) (19) (12) Purchase accounting inventory adjustments (4) — — Merger costs (2) (28) — EBITDA from discontinued operations (125) 309 76 Noncontrolling interest of discontinued operations (232) (49) (11) Fair value adjustments to Venator investment (62) — — Loss on early extinguishment of debt (3) (54) (3) Certain legal settlements and related (expenses) income (6) 11 (1) Gain on sale of assets — 9 97 Amortization of pension and postretirement actuarial losses (75) (76) (58) Plant incident remediation costs (1) (16) — U.S. Tax Reform Act impact on noncontrolling interest — 6 — Restructuring, impairment and plant closing and transition credits (costs) 4 (20) (48) Net income $ 636 $ 734 $ 354 December 31, 2018 2017 2016 Depreciation and Amortization: Polyurethanes $ 129 $ 116 $ 114 Performance Products 145 137 132 Advanced Materials 37 33 35 Textile Effects 16 14 15 Corporate and other 13 11 10 Total $ 340 $ 311 $ 306 December 31, 2018 2017 2016 Capital Expenditures: Polyurethanes $ 163 $ 162 $ 143 Performance Products 100 79 131 Advanced Materials 20 21 16 Textile Effects 20 16 19 Corporate and other 10 4 9 Total $ 313 $ 282 $ 318 December 31, 2018 2017 2016 Total Assets: Polyurethanes $ 3,427 $ 3,109 $ 2,665 Performance Products 2,088 2,069 2,045 Advanced Materials 796 796 728 Textile Effects 571 564 523 Corporate and other 1,453 1,167 1,274 Total $ 8,335 $ 7,705 $ 7,235 (1) We use segment adjusted EBITDA as the measure of each segment’s profit or loss. We believe that segment adjusted EBITDA more accurately reflects what management uses to make decisions about resources to be allocated to the segments and assess their financial performance. Segment adjusted EBITDA is defined as net income of Huntsman Corporation or Huntsman International, as appropriate, before interest, income tax, depreciation and amortization, net income attributable to noncontrolling interests and certain Corporate and other items, as well as eliminating the following adjustments: (a) business acquisition and integration expenses; (b) merger costs; (c) EBITDA from discontinued operations; (d) noncontrolling interest of discontinued operations; (e) fair value adjustments to Venator investment; (f) loss on early extinguishment of debt; (g) certain legal settlements and related income (expenses); (h) gain (loss) on sale of assets; (i) amortization of pension and postretirement actuarial losses; (j) plant incident remediation costs; (k) U.S. Tax Reform Act impact on noncontrolling interest; and (l) restructuring, impairment, plant closing and transition credits (costs). (2) Corporate and other includes unallocated corporate overhead, unallocated foreign exchange gains and losses, LIFO inventory valuation reserve adjustments, nonoperating income and expense, benzene sales and gains and losses on the disposition of corporate assets. |
SELECTED UNAUDITED QUARTERLY _2
SELECTED UNAUDITED QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information | |
Summary of selected unaudited quarterly financial data | A summary of selected unaudited quarterly financial data for the years ended December 31, 2018 and 2017 is as follows (dollars in millions, except per share amounts): Huntsman Corporation Three months ended March 31, June 30, September 30, December 31, 2018 2018 2018(1) 2018(2) Revenues $ 2,295 $ 2,404 $ 2,444 $ 2,236 Gross profit 540 555 524 406 Restructuring, impairment and plant closing costs (credits) 2 1 5 (13) Income from continuing operations 236 289 229 91 Net income (loss) 350 623 (8) (315) Net income attributable to noncontrolling interests(3) 76 209 3 25 Net income (loss) attributable to Huntsman Corporation 274 414 (11) (340) Basic income (loss) per share(4): Income from continuing operations attributable to Huntsman Corporation common stockholders 0.66 1.12 0.86 3.21 Net income (loss) attributable to Huntsman Corporation common stockholders 1.14 1.73 (0.05) (1.79) Diluted income (loss) per share(4): Income from continuing operations attributable to Huntsman Corporation common stockholders 0.65 1.11 0.85 3.16 Net income (loss) attributable to Huntsman Corporation common stockholders 1.11 1.71 (0.05) (1.77) Three months ended March 31, June 30, September 30, December 31, 2017 2017 2017 2017(5) Revenues $ 1,932 $ 2,054 $ 2,169 $ 2,203 Gross profit 390 436 472 508 Restructuring, impairment and plant closing costs 9 3 1 7 Income from continuing operations 99 138 116 230 Net income 92 183 179 287 Net income attributable to noncontrolling interests(3) 16 16 32 41 Net income attributable to Huntsman Corporation 76 167 147 246 Basic income per share(4): Income from continuing operations attributable to Huntsman Corporation common stockholders 0.35 0.51 0.36 0.79 Net income attributable to Huntsman Corporation common stockholders 0.32 0.70 0.62 1.03 Diluted income per share(4): Income from continuing operations attributable to Huntsman Corporation common stockholders 0.34 0.50 0.34 0.77 Net income attributable to Huntsman Corporation common stockholders 0.31 0.69 0.60 1.00 (1) During the third quarter of 2018, we recognized a net after tax valuation allowance of $270 million to adjust the carrying amount of the assets and liabilities held for sale and the amount of accumulated comprehensive income recorded in equity related to Venator to the lower of cost or estimated fair value, less cost to sell. This loss was recorded in discontinued operations on our consolidated statements of operations. For more information see “Note 4. Discontinued Operations and Dispositions – Separation and Deconsolidation of Venator.” (2) In connection with the deconsolidation of Venator, we recorded a pretax loss of $427 million during the fourth quarter of 2018 to record our remaining ownership interest in Venator at fair value. This loss was recorded in discontinued operations on our consolidated statements of operations. We elected the fair value option to account for our equity method investment in Venator post deconsolidation. Accordingly, at December 31, 2018, we recorded a pretax loss of $57 million to record our equity method investment in Venator at fair value. This loss was recorded in “Fair value adjustments to Venator investment” on our consolidated statements of operations. Furthermore, in connection with the December 3, 2018 sale of Venator shares to Bank of America N.A., we recorded a forward swap. During December 2018, we recorded a loss of $5 million in “Fair value adjustments to Venator investment” on our consolidated statements of operations to record the forward swap at fair value. For more information, see “Note 4. Discontinued Operations and Dispositions – Separation and Deconsolidation of Venator.” (3) In connection with the Venator IPO in August 2017, we separated the P&A Business and, beginning in the third quarter of 2017, we reported the results of operations of Venator as discontinued operations on our consolidated financial statements. On December 3, 2018, we further reduced our investment in Venator by the sale of Venator ordinary shares which allowed us to deconsolidate Venator beginning in December 2018. See “Note 4. Discontinued Operations and Business Dispositions—Separation of Venator.” (4) Basic and diluted income per share are computed independently for each of the quarters presented based on the weighted average number of common shares outstanding during that period. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. (5) On December 22, 2017, the U.S. enacted the U.S. Tax Reform Act. During the fourth quarter of 2017, we and Huntsman International recorded the impact of the U.S. Tax Reform Act which resulted in a net $52 million and $53 million, respectively, income tax benefit. |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |
Quarterly Financial Information | |
Summary of selected unaudited quarterly financial data | Three months ended March 31, June 30, September 30, December 31, 2018 2018 2018(1) 2018(2) Revenues $ 2,295 $ 2,404 2,444 $ 2,236 Gross profit 541 556 525 406 Restructuring, impairment and plant closing costs 2 1 5 (13) Income from continuing operations 233 286 226 86 Net income (loss) 347 620 (11) (320) Net income attributable to noncontrolling interests(3) 76 209 3 25 Net income (loss) attributable to Huntsman International 271 411 (14) (345) Three months ended March 31, June 30, September 30, December 31, 2017 2017 2017 2017(5) Revenues $ 1,932 $ 2,054 $ 2,169 $ 2,203 Gross profit 392 437 474 509 Restructuring, impairment and plant closing costs (credits) 9 3 1 7 Income from continuing operations 98 139 115 227 Net income 91 182 177 284 Net income attributable to noncontrolling interests(3) 16 16 32 41 Net income attributable to Huntsman International 75 166 145 243 (1) During the third quarter of 2018, we recognized a net after tax valuation allowance of $270 million to adjust the carrying amount of the assets and liabilities held for sale and the amount of accumulated comprehensive income recorded in equity related to Venator to the lower of cost or estimated fair value, less cost to sell. This loss was recorded in discontinued operations on our consolidated statements of operations. For more information see “Note 4. Discontinued Operations and Dispositions – Separation and Deconsolidation of Venator.” (2) In connection with the deconsolidation of Venator, we recorded a pretax loss of $427 million during the fourth quarter of 2018 to record our remaining ownership interest in Venator at fair value. This loss was recorded in discontinued operations on our consolidated statements of operations. We elected the fair value option to account for our equity method investment in Venator post deconsolidation. Accordingly, at December 31, 2018, we recorded a pretax loss of $57 million to record our equity method investment in Venator at fair value. This loss was recorded in “Fair value adjustments to Venator investment” on our consolidated statements of operations. Furthermore, in connection with the December 3, 2018 sale of Venator shares to Bank of America N.A., we recorded a forward swap. During December 2018, we recorded a loss of $5 million in “Fair value adjustments to Venator investment” on our consolidated statements of operations to record the forward swap at fair value. For more information, see “Note 4. Discontinued Operations and Dispositions – Separation and Deconsolidation of Venator.” (3) In connection with the Venator IPO in August 2017, we separated the P&A Business and, beginning in the third quarter of 2017, we reported the results of operations of Venator as discontinued operations on our consolidated financial statements. On December 3, 2018, we further reduced our investment in Venator by the sale of Venator ordinary shares which allowed us to deconsolidate Venator (4) Basic and diluted income per share are computed independently for each of the quarters presented based on the weighted average number of common shares outstanding during that period. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. (5) On December 22, 2017, the U.S. enacted the U.S. Tax Reform Act. During the fourth quarter of 2017, we and Huntsman International recorded the impact of the U.S. Tax Reform Act which resulted in a net $52 million and $53 million, respectively, income tax benefit. |
GENERAL - DESCRIPTION (Details)
GENERAL - DESCRIPTION (Details) | 12 Months Ended |
Dec. 31, 2018segmentcompany | |
GENERAL | |
Number of Chinese chemical companies | company | 3 |
Number of operating segments | segment | 4 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |
GENERAL | |
Ownership interest (as a percent) | 100.00% |
GENERAL - SEPARATION AND DECONS
GENERAL - SEPARATION AND DECONSOLIDATION (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 03, 2018 | Dec. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jan. 03, 2018 |
GENERAL | |||||||||
Aggregate proceeds from sale of investment | $ 3 | ||||||||
Equity Securities, FV-NI, Unrealized Loss | $ 62 | ||||||||
Discontinued Operations, Held-for-sale | Venator Pigments and Additives Business | |||||||||
GENERAL | |||||||||
Valuation allowance | $ 270 | ||||||||
Discontinued Operations, Disposed of by Means Other than Sale | Venator Pigments and Additives Business | |||||||||
GENERAL | |||||||||
Pre-tax loss on discontinued operations | $ 427 | $ 427 | |||||||
Venator Materials PLC | |||||||||
GENERAL | |||||||||
Aggregate number shares sold | 4,334,389 | ||||||||
Percentage of equity ownership interest sold | 4.00% | ||||||||
Aggregate proceeds from sale of investment | $ 16 | $ 19 | |||||||
Equity Method Investment, Ownership Percentage | 49.00% | ||||||||
Equity Securities, FV-NI, Unrealized Loss | $ 57 | ||||||||
Venator Materials PLC | Over allotment | |||||||||
GENERAL | |||||||||
Underwriters purchased an additional shares | 1,948,955 | ||||||||
Venator Materials PLC | |||||||||
GENERAL | |||||||||
Ownership interest (as a percent) | 53.00% |
GENERAL - OTHER (Details)
GENERAL - OTHER (Details) - USD ($) $ in Millions | May 21, 2018 | Apr. 23, 2018 | Jan. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 03, 2018 | Sep. 29, 2015 |
GENERAL | ||||||||
Loss on early extinguishment of debt | $ 3 | $ 54 | $ 3 | |||||
Share Repurchase Program | ||||||||
Number of shares repurchased | 537,018 | 10,405,457 | ||||||
Payments for stock repurchased, excluding commissions | $ 11 | $ 276 | ||||||
Share Repurchase Program 2015 | ||||||||
Share Repurchase Program | ||||||||
Remaining amount authorized for repurchase | $ 50 | |||||||
Share Repurchase Program 2015 | Maximum | ||||||||
Share Repurchase Program | ||||||||
Amount of shares authorized to repurchased | $ 150 | |||||||
Share Repurchase Program 2018 | Maximum | ||||||||
Share Repurchase Program | ||||||||
Amount of shares authorized to repurchased | $ 950 | |||||||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||||||
GENERAL | ||||||||
Loss on early extinguishment of debt | 3 | $ 54 | $ 3 | |||||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | 2018 Revolving Credit Facility | ||||||||
GENERAL | ||||||||
Optional increase to committed amount of facility | $ 500 | |||||||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Prior Credit Facility | ||||||||
GENERAL | ||||||||
Loss on early extinguishment of debt | $ 3 | |||||||
Demilec | ||||||||
Share Repurchase Program | ||||||||
Equity interest acquired (as a percent) | 100.00% | |||||||
Net acquisition cost | $ 353 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
ASSET RETIREMENT OBLIGATIONS | ||
Asset retirement obligations | $ 11 | $ 9 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - DERIVATIVES AND HEDGING ACTIVITIES (Details) | 12 Months Ended |
Dec. 31, 2018 | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |
Quarterly period of effectiveness assessments | 3 months |
Minimum | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |
Derivative designated as a cash flow hedge, effectiveness percentage (as a percent) | 80.00% |
Maximum | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |
Derivative designated as a cash flow hedge, effectiveness percentage (as a percent) | 125.00% |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - FOREIGN CURRENCY TRANSLATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
FOREIGN CURRENCY TRANSLATION | |||
Cumulative inflation rate used to determine if economic environment is highly inflationary (as a percent) | 100.00% | ||
Period used to determine if economic environment is highly inflationary | 3 years | ||
Foreign currency transaction gains | $ 3 | $ 5 | $ 2 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
U.S. Tax Reform Act | |||||
U.S. income tax statutory rate (as a percent) | 21.00% | 35.00% | 35.00% | ||
Net tax benefits from due to remeasurement of deferred tax assets and liabilities | $ 135 | ||||
Income tax benefit from remeasurement of deferred assets and liabilities | $ 52 | $ 137 | |||
Final tax expense from remeasurement of deferred assets and liabilities | $ 2 | ||||
Net tax expenses due to transition tax on deemed repatriation of deferred foreign income | $ 115 | ||||
Provisional tax expense due to transition tax on deemed repatriation of deferred foreign income | $ 85 | ||||
Final federal tax expense on deemed repatriation of deferred foreign income | 29 | ||||
Final state tax expense on deemed repatriation of deferred foreign income | $ 1 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - FINITE-LIVED INTANGIBLES (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Patents and technology | Minimum | |
INTANGIBLE ASSETS | |
Estimated useful life | 5 years |
Patents and technology | Maximum | |
INTANGIBLE ASSETS | |
Estimated useful life | 30 years |
Trademarks | Minimum | |
INTANGIBLE ASSETS | |
Estimated useful life | 9 years |
Trademarks | Maximum | |
INTANGIBLE ASSETS | |
Estimated useful life | 30 years |
Licenses and other agreements | Minimum | |
INTANGIBLE ASSETS | |
Estimated useful life | 5 years |
Licenses and other agreements | Maximum | |
INTANGIBLE ASSETS | |
Estimated useful life | 15 years |
Other intangibles | Minimum | |
INTANGIBLE ASSETS | |
Estimated useful life | 5 years |
Other intangibles | Maximum | |
INTANGIBLE ASSETS | |
Estimated useful life | 15 years |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - GOODWILL (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Goodwill rollforward | |
Goodwill, Beginning Balance | $ 140 |
Goodwill acquired during year | 142 |
Foreign current effect on balance | (7) |
Goodwill, Ending Balance | 275 |
Polyurethanes | |
Goodwill rollforward | |
Goodwill, Beginning Balance | 40 |
Goodwill acquired during year | 142 |
Foreign current effect on balance | (9) |
Goodwill, Ending Balance | 173 |
Performance Products | |
Goodwill rollforward | |
Goodwill, Beginning Balance | 17 |
Foreign current effect on balance | (1) |
Goodwill, Ending Balance | 16 |
Advanced Materials | |
Goodwill rollforward | |
Goodwill, Beginning Balance | 83 |
Foreign current effect on balance | 3 |
Goodwill, Ending Balance | $ 86 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - NET INCOME PER SHARE (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Basic and diluted income from continuing operations: | |||||||||||
Income from continuing operations attributable to Huntsman Corporation | $ 764 | $ 478 | $ 334 | ||||||||
Basic and diluted net income: | |||||||||||
Net income attributable to Huntsman Corporation or Huntsman International | $ (340) | $ (11) | $ 414 | $ 274 | $ 246 | $ 147 | $ 167 | $ 76 | $ 337 | $ 636 | $ 326 |
Denominator: | |||||||||||
Weighted average shares outstanding (in shares) | 238.1 | 238.4 | 236.3 | ||||||||
Dilutive shares: | |||||||||||
Stock-based awards (in shares) | 3.5 | 5.5 | 3.3 | ||||||||
Total weighted average shares outstanding, including dilutive shares | 241.6 | 243.9 | 239.6 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ANTIDILUTIVE SHARES (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Outstanding stock-based awards | |||
Antidilutive shares not included in the computation of income (loss) per share | |||
Weighted average equivalent shares | 0.8 | 0.8 | 5.7 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
PROPERTY, PLANT AND EQUIPMENT | |||
Interest expense capitalized as part of plant and equipment | $ 4 | $ 9 | $ 12 |
Buildings and equipment | Minimum | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Estimated useful lives | 5 years | ||
Buildings and equipment | Maximum | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Estimated useful lives | 50 years | ||
Plant and equipment | Minimum | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Estimated useful lives | 3 years | ||
Plant and equipment | Maximum | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Estimated useful lives | 30 years | ||
Furniture, fixtures and leasehold improvements | Minimum | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Estimated useful lives | 5 years | ||
Furniture, fixtures and leasehold improvements | Maximum | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Estimated useful lives | 20 years |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 |
Adjustment | ASU 2016-01 | ||
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | ||
Cumulative effect of changes in fair value of equity investments | $ 10 | |
Minimum | ASU 2016-02 | ||
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | ||
Operating and finance less right-of-use asset | $ 400 | |
Operating and finance lease liability | 400 | |
Maximum | ASU 2016-02 | ||
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | ||
Operating and finance less right-of-use asset | 450 | |
Operating and finance lease liability | $ 450 |
BUSINESS COMBINATION (Details)
BUSINESS COMBINATION (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 23, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
BUSINESS COMBINATIONS | ||||
Transaction related costs | $ 2 | $ 28 | ||
Fair value of assets acquired and liabilities assumed: | ||||
Goodwill | $ 275 | 275 | 140 | |
Estimated pro forma revenues and net income (loss) attributable to business acquisition | ||||
Revenues | 9,437 | 8,523 | ||
Net income | 639 | 728 | ||
Net income attributable to business acquisition | $ 326 | $ 623 | ||
Income per share: | ||||
Basic (in dollars per share) | $ 1.37 | $ 2.61 | ||
Diluted (in dollars per share) | $ 1.35 | $ 2.55 | ||
Demilec | ||||
BUSINESS COMBINATIONS | ||||
Equity interest acquired (as a percent) | 100.00% | |||
Transaction related costs | $ 5 | |||
Acquired intangible assets estimated useful life | 15 years | |||
Revenue from date of acquisition | 142 | |||
Net income from date of acquisition | 5 | |||
Fair value of assets acquired and liabilities assumed: | ||||
Cash paid for Demilec Acquisition in Q2 2018 | $ 357 | |||
Purchase price adjustment received in Q3 2018 | (4) | |||
Net acquisition cost | 353 | |||
Cash | 1 | |||
Accounts receivable | 31 | |||
Inventories | 23 | |||
Prepaid expenses and other current assets | 1 | |||
Property, plant and equipment | 21 | |||
Intangible assets | 177 | |||
Goodwill | 142 | |||
Accounts payable | (16) | |||
Accrued liabilities | (3) | |||
Deferred income taxes, non-current | (22) | |||
Other noncurrent liabilities | (2) | |||
Total fair value of net assets acquired | $ 353 | |||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||
BUSINESS COMBINATIONS | ||||
Transaction related costs | 2 | $ 28 | ||
Fair value of assets acquired and liabilities assumed: | ||||
Goodwill | $ 275 | 275 | 140 | |
Estimated pro forma revenues and net income (loss) attributable to business acquisition | ||||
Revenues | 9,437 | 8,523 | ||
Net income | 625 | 721 | ||
Net income attributable to business acquisition | $ 312 | $ 616 |
DISCONTINUED OPERATIONS - BALAN
DISCONTINUED OPERATIONS - BALANCE SHEET (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 03, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | Aug. 31, 2017 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jan. 03, 2018 | Dec. 31, 2017 |
DISCONTINUED OPERATIONS | ||||||||||||
Aggregate proceeds from sale of investment | $ 3 | |||||||||||
Unrealized losses on fair value adjustments to Venator investment | $ 62 | |||||||||||
Venator Materials PLC | ||||||||||||
DISCONTINUED OPERATIONS | ||||||||||||
Aggregate number shares sold | 4,334,389 | |||||||||||
Percentage of equity ownership interest sold | 4.00% | |||||||||||
Aggregate proceeds from sale of investment | $ 16 | $ 19 | ||||||||||
Equity Method Investment, Ownership Percentage | 49.00% | |||||||||||
Unrealized losses on fair value adjustments to Venator investment | $ 57 | |||||||||||
Venator Materials PLC | Forward Swap | ||||||||||||
DISCONTINUED OPERATIONS | ||||||||||||
Unrealized losses on fair value adjustments to Venator investment | $ 5 | $ 5 | ||||||||||
Discontinued Operations, Held-for-sale | Venator Pigments and Additives Business | ||||||||||||
DISCONTINUED OPERATIONS | ||||||||||||
Valuation allowance | $ 270 | |||||||||||
Carrying amounts of major classes of assets held for sale: | ||||||||||||
Accounts receivable | $ 380 | |||||||||||
Inventories | 454 | |||||||||||
Other current assets | 318 | |||||||||||
Property, plant and equipment, net | 1,424 | |||||||||||
Deferred income taxes | 158 | |||||||||||
Other noncurrent assets | 146 | |||||||||||
Total assets held for sale | 2,880 | |||||||||||
Carrying amounts of major classes of liabilities held for sale: | ||||||||||||
Accounts payable | 385 | |||||||||||
Accrued liabilities | 236 | |||||||||||
Other current liabilities | 25 | |||||||||||
Long term debt | 746 | |||||||||||
Other noncurrent liabilities | 300 | |||||||||||
Total liabilities held for sale | $ 1,692 | |||||||||||
Discontinued Operations, Disposed of by Means Other than Sale | Venator Pigments and Additives Business | ||||||||||||
DISCONTINUED OPERATIONS | ||||||||||||
Pre-tax loss on discontinued operations | $ 427 | $ 427 | ||||||||||
Expected period of service provided after separation | 24 months | |||||||||||
Over allotment | Venator Materials PLC | ||||||||||||
DISCONTINUED OPERATIONS | ||||||||||||
Underwriters purchased an additional shares | 1,948,955 | |||||||||||
Venator Materials PLC | ||||||||||||
DISCONTINUED OPERATIONS | ||||||||||||
Ownership interest (as a percent) | 53.00% |
DISCONTINUED OPERATIONS - OPERA
DISCONTINUED OPERATIONS - OPERATIONS DATA (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Major classes of line items constituting pretax income of discontinued operations: | |||
Income tax benefit (expense) | $ (34) | $ (67) | $ 24 |
Income (loss) from discontinued operations, net of tax | (195) | 158 | (8) |
Net income (loss) attributable to discontinued operations | (427) | 158 | (8) |
Venator Pigments and Additives Business | Discontinued Operations, Disposed of by Means Other than Sale | |||
Major classes of line items constituting pretax income of discontinued operations: | |||
Trade sales, services and fees, net | 2,148 | 2,234 | 2,168 |
Cost of goods sold | 1,333 | 1,840 | 2,012 |
Other expense items, net that are not major | 279 | 169 | 188 |
Income (loss) from discontinued operations before income taxes | 536 | 225 | (32) |
Income tax benefit (expense) | (34) | (67) | 24 |
Loss on disposal | (427) | ||
Valuation Allowance | (270) | ||
Income (loss) from discontinued operations, net of tax | (195) | 158 | (8) |
Net income attributable to noncontrolling interests | (6) | (10) | (10) |
Net income (loss) attributable to discontinued operations | (201) | 148 | (18) |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Major classes of line items constituting pretax income of discontinued operations: | |||
Income tax benefit (expense) | (34) | (67) | 24 |
Income (loss) from discontinued operations, net of tax | (195) | 155 | (13) |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Venator Pigments and Additives Business | Discontinued Operations, Disposed of by Means Other than Sale | |||
Major classes of line items constituting pretax income of discontinued operations: | |||
Trade sales, services and fees, net | 2,148 | 2,234 | 2,168 |
Cost of goods sold | 1,333 | 1,843 | 2,017 |
Other expense items, net that are not major | 279 | 169 | 188 |
Income (loss) from discontinued operations before income taxes | 536 | 222 | (37) |
Income tax benefit (expense) | (34) | (67) | 24 |
Loss on disposal | (427) | ||
Valuation Allowance | (270) | ||
Income (loss) from discontinued operations, net of tax | (195) | 155 | (13) |
Net income attributable to noncontrolling interests | (6) | (10) | (10) |
Net income (loss) attributable to discontinued operations | $ (201) | $ 145 | $ (23) |
DISCONTINUED OPERATIONS - EUROP
DISCONTINUED OPERATIONS - EUROPEAN SURFACTANTS (Details) - European Surfactants Manufacturing Facilities - Discontinued Operations, Disposed of by Sale - USD ($) $ in Millions | Dec. 30, 2016 | Dec. 31, 2016 |
DISCONTINUED OPERATIONS | ||
Sale consideration in cash | $ 199 | |
Retention of trade receivables and payables for an enterprise value | $ 225 | |
Other operating income, net | ||
DISCONTINUED OPERATIONS | ||
Pre-tax gain on disposal | $ 98 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Inventories | |||
Raw materials and supplies | $ 215 | $ 189 | |
Work in progress | 51 | 48 | |
Finished goods | 927 | 897 | |
Total | 1,193 | 1,134 | |
LIFO reserves | (59) | (61) | |
Net inventories | [1] | $ 1,134 | $ 1,073 |
Percentage of inventories recorded using the LIFO cost method | 13.00% | 12.00% | |
[1] | At December 31, 2018 and December 31, 2017, respectively, $7 and $15 of cash and cash equivalents, nil and $11 of restricted cash, 30 and $35 of accounts and notes receivable (net), $49 and $46 of inventories, $5 and $7 of other current assets, $265 and $283 of property, plant and equipment (net), $10 each of intangible assets (net), $52 and $43 of other noncurrent assets, $123 and $109 of accounts payable, $30 and $32 of accrued liabilities, $25 and $21 of current portion of debt, $61 and $86 of longterm debt, and $97 and $98 of other noncurrent liabilities from consolidated variable interest entities are included in the respective Balance Sheet captions above. See “Note 8. Variable Interest Entities.” |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
PROPERTY, PLANT AND EQUIPMENT | |||||
Total | $ 7,209 | $ 7,083 | |||
Less accumulated depreciation | (4,145) | (3,985) | |||
Net | 3,064 | [1] | 3,098 | [1] | $ 3,034 |
Depreciation expense | 310 | 298 | 289 | ||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||
PROPERTY, PLANT AND EQUIPMENT | |||||
Total | 7,263 | 7,136 | |||
Less accumulated depreciation | (4,199) | (4,041) | |||
Net | 3,064 | [1] | 3,095 | [1] | 3,012 |
Depreciation expense | 307 | 289 | $ 277 | ||
Land | |||||
PROPERTY, PLANT AND EQUIPMENT | |||||
Total | 142 | 150 | |||
Land | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||
PROPERTY, PLANT AND EQUIPMENT | |||||
Total | 142 | 150 | |||
Buildings | |||||
PROPERTY, PLANT AND EQUIPMENT | |||||
Total | 660 | 644 | |||
Buildings | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||
PROPERTY, PLANT AND EQUIPMENT | |||||
Total | 660 | 644 | |||
Plant and equipment | |||||
PROPERTY, PLANT AND EQUIPMENT | |||||
Total | 6,100 | 5,929 | |||
Plant and equipment | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||
PROPERTY, PLANT AND EQUIPMENT | |||||
Total | 6,154 | 5,982 | |||
Construction in progress | |||||
PROPERTY, PLANT AND EQUIPMENT | |||||
Total | 307 | 360 | |||
Construction in progress | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||
PROPERTY, PLANT AND EQUIPMENT | |||||
Total | $ 307 | $ 360 | |||
[1] | At December 31, 2018 and December 31, 2017, respectively, $7 and $15 of cash and cash equivalents, nil and $11 of restricted cash, 30 and $35 of accounts and notes receivable (net), $49 and $46 of inventories, $5 and $7 of other current assets, $265 and $283 of property, plant and equipment (net), $10 each of intangible assets (net), $52 and $43 of other noncurrent assets, $123 and $109 of accounts payable, $30 and $32 of accrued liabilities, $25 and $21 of current portion of debt, $61 and $86 of longterm debt, and $97 and $98 of other noncurrent liabilities from consolidated variable interest entities are included in the respective Balance Sheet captions above. See “Note 8. Variable Interest Entities.” |
INVESTMENT IN UNCONSOLIDATED _3
INVESTMENT IN UNCONSOLIDATED AFFILIATES (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
INVESTMENT IN UNCONSOLIDATED AFFILIATES | ||
Total equity method investments | $ 526 | $ 261 |
Total investments | 526 | 266 |
Venator Materials PLC | ||
INVESTMENT IN UNCONSOLIDATED AFFILIATES | ||
Total equity method investments | $ 219 | |
Ownership interest (as a percent) | 49.00% | |
BASF Huntsman Shanghai Isocyanate Investment BV | ||
INVESTMENT IN UNCONSOLIDATED AFFILIATES | ||
Total equity method investments | $ 120 | 116 |
Ownership interest (as a percent) | 50.00% | |
BASF Huntsman Shanghai Isocyanate Investment BV | SLIC | ||
INVESTMENT IN UNCONSOLIDATED AFFILIATES | ||
Ownership interest held by equity method investee that creates an indirect ownership interest by the reporting entity (as a percent) | 70.00% | |
Indirect ownership interest in an unaffiliated entity (as a percent) | 35.00% | |
Nanjing Jinling Huntsman New Material Co., Ltd. | ||
INVESTMENT IN UNCONSOLIDATED AFFILIATES | ||
Total equity method investments | $ 163 | 124 |
Ownership interest (as a percent) | 49.00% | |
Jurong Ningwu New Materials Development Co Ltd | ||
INVESTMENT IN UNCONSOLIDATED AFFILIATES | ||
Total equity method investments | $ 24 | $ 21 |
Ownership interest (as a percent) | 30.00% | |
International Diol Company | ||
INVESTMENT IN UNCONSOLIDATED AFFILIATES | ||
Ownership percentage in cost method unconsolidated affiliates | 4.00% | |
International Diol Company | International Diol Company | ||
INVESTMENT IN UNCONSOLIDATED AFFILIATES | ||
Cost Method Investments | $ 5 |
SUMMARIZED FINANCIAL INFORMATIO
SUMMARIZED FINANCIAL INFORMATION OF UNCONSOLIDATED AFFILIATES (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
INVESTMENT IN UNCONSOLIDATED AFFILIATES | |||||||||||
Current assets | $ 2,958 | $ 5,979 | $ 2,958 | $ 5,979 | |||||||
Current liabilities | 1,611 | 3,265 | 1,611 | 3,265 | |||||||
Revenues | 2,236 | $ 2,444 | $ 2,404 | $ 2,295 | 2,203 | $ 2,169 | $ 2,054 | $ 1,932 | 9,379 | 8,358 | $ 7,518 |
Gross profit | 406 | 524 | 555 | 540 | 508 | 472 | 436 | 390 | 2,025 | 1,806 | 1,518 |
Income from continuing operations | 91 | 229 | 289 | 236 | 230 | 116 | 138 | 99 | 845 | 583 | 365 |
Net income | (315) | $ (8) | $ 623 | $ 350 | 287 | $ 179 | $ 183 | $ 92 | 650 | 741 | 357 |
Unconsolidated affiliates | |||||||||||
INVESTMENT IN UNCONSOLIDATED AFFILIATES | |||||||||||
Current assets | 1,548 | 391 | 1,548 | 391 | |||||||
Noncurrent assets | 2,444 | 1,138 | 2,444 | 1,138 | |||||||
Current liabilities | 781 | 358 | 781 | 358 | |||||||
Noncurrent liabilities | 1,683 | $ 567 | 1,683 | 567 | |||||||
Noncontrolling interests | $ 8 | 8 | |||||||||
Revenues | 2,181 | 1,109 | 645 | ||||||||
Gross profit | 221 | 112 | 49 | ||||||||
Income from continuing operations | 124 | 34 | 16 | ||||||||
Net income | $ 124 | $ 34 | $ 16 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | ||||||
Assets and liabilities of VIE | ||||||||||||||||
Current assets | $ 2,958 | $ 5,979 | $ 2,958 | $ 5,979 | ||||||||||||
Property, plant and equipment, net | 3,064 | [1] | 3,098 | [1] | 3,064 | [1] | 3,098 | [1] | $ 3,034 | |||||||
Other noncurrent assets | [1] | 553 | 497 | 553 | 497 | |||||||||||
Deferred income taxes | 324 | 208 | 324 | 208 | ||||||||||||
Intangible assets | [1] | 219 | 56 | 219 | 56 | |||||||||||
Goodwill | 275 | 140 | 275 | 140 | ||||||||||||
Total assets | 7,953 | 10,244 | 7,953 | 10,244 | ||||||||||||
Current liabilities | 1,611 | 3,265 | 1,611 | 3,265 | ||||||||||||
Long-term debt | [1] | 2,224 | 2,258 | 2,224 | 2,258 | |||||||||||
Deferred income taxes | 296 | 264 | 296 | 264 | ||||||||||||
Other noncurrent liabilities | [1] | 1,073 | 1,086 | 1,073 | 1,086 | |||||||||||
Total liabilities | 5,204 | 6,873 | 5,204 | 6,873 | ||||||||||||
Revenues, income from continuing operations before income taxes and net cash provided by operating activities for our variable interest entities | ||||||||||||||||
Total revenues | 2,236 | $ 2,444 | $ 2,404 | $ 2,295 | 2,203 | $ 2,169 | $ 2,054 | $ 1,932 | 9,379 | 8,358 | 7,518 | |||||
Income from continuing operations before income taxes | 942 | 647 | 474 | |||||||||||||
Net cash provided by operating activities | $ 1,207 | 1,219 | 1,088 | |||||||||||||
Number of variable interests of additional joint ventures held prior to Separation | item | 2 | |||||||||||||||
Rubicon, Arabian Amines, and Sasol Huntsman | ||||||||||||||||
Assets and liabilities of VIE | ||||||||||||||||
Current assets | 92 | 114 | $ 92 | 114 | ||||||||||||
Property, plant and equipment, net | 265 | 283 | 265 | 283 | ||||||||||||
Other noncurrent assets | 136 | 116 | 136 | 116 | ||||||||||||
Deferred income taxes | 32 | 33 | 32 | 33 | ||||||||||||
Intangible assets | 10 | 10 | 10 | 10 | ||||||||||||
Goodwill | 14 | 14 | 14 | 14 | ||||||||||||
Total assets | 549 | 570 | 549 | 570 | ||||||||||||
Current liabilities | 178 | 163 | 178 | 163 | ||||||||||||
Long-term debt | 61 | 86 | 61 | 86 | ||||||||||||
Deferred income taxes | 11 | 12 | 11 | 12 | ||||||||||||
Other noncurrent liabilities | 97 | 98 | 97 | 98 | ||||||||||||
Total liabilities | 347 | $ 359 | 347 | 359 | ||||||||||||
Revenues, income from continuing operations before income taxes and net cash provided by operating activities for our variable interest entities | ||||||||||||||||
Total revenues | 154 | 132 | 97 | |||||||||||||
Income from continuing operations before income taxes | 40 | 25 | 15 | |||||||||||||
Net cash provided by operating activities | $ 65 | $ 51 | $ 50 | |||||||||||||
Rubicon LLC | ||||||||||||||||
Identification of variable interest entities through investments and transactions | ||||||||||||||||
Variable interest entity ownership percentage | 50.00% | |||||||||||||||
Arabian Amines Company | ||||||||||||||||
Identification of variable interest entities through investments and transactions | ||||||||||||||||
Variable interest entity ownership percentage | 50.00% | |||||||||||||||
Assets and liabilities of VIE | ||||||||||||||||
Long-term debt | $ 61 | $ 61 | ||||||||||||||
Sasol Huntsman GmbH and Co. KG | ||||||||||||||||
Identification of variable interest entities through investments and transactions | ||||||||||||||||
Variable interest entity ownership percentage | 50.00% | |||||||||||||||
[1] | At December 31, 2018 and December 31, 2017, respectively, $7 and $15 of cash and cash equivalents, nil and $11 of restricted cash, 30 and $35 of accounts and notes receivable (net), $49 and $46 of inventories, $5 and $7 of other current assets, $265 and $283 of property, plant and equipment (net), $10 each of intangible assets (net), $52 and $43 of other noncurrent assets, $123 and $109 of accounts payable, $30 and $32 of accrued liabilities, $25 and $21 of current portion of debt, $61 and $86 of longterm debt, and $97 and $98 of other noncurrent liabilities from consolidated variable interest entities are included in the respective Balance Sheet captions above. See “Note 8. Variable Interest Entities.” |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
INTANGIBLE ASSETS | |||
Carrying Amount | $ 645 | $ 476 | |
Accumulated Amortization | 426 | 420 | |
Net | 219 | 56 | |
Amortization expense | 11 | 6 | $ 12 |
Estimated future amortization expense for intangible assets | |||
2,019 | 19 | ||
2,020 | 17 | ||
2,021 | 16 | ||
2,022 | 16 | ||
2,023 | 16 | ||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
INTANGIBLE ASSETS | |||
Carrying Amount | 653 | 484 | |
Accumulated Amortization | 434 | 428 | |
Net | 219 | 56 | |
Amortization expense | 11 | 7 | $ 12 |
Patents, trademarks and technology | |||
INTANGIBLE ASSETS | |||
Carrying Amount | 424 | 350 | |
Accumulated Amortization | 333 | 332 | |
Net | 91 | 18 | |
Patents, trademarks and technology | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
INTANGIBLE ASSETS | |||
Carrying Amount | 424 | 350 | |
Accumulated Amortization | 333 | 332 | |
Net | 91 | 18 | |
Licenses and other agreements | |||
INTANGIBLE ASSETS | |||
Carrying Amount | 135 | 40 | |
Accumulated Amortization | 31 | 25 | |
Net | 104 | 15 | |
Licenses and other agreements | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
INTANGIBLE ASSETS | |||
Carrying Amount | 135 | 40 | |
Accumulated Amortization | 31 | 25 | |
Net | 104 | 15 | |
Non-compete agreements | |||
INTANGIBLE ASSETS | |||
Carrying Amount | 3 | 4 | |
Accumulated Amortization | 2 | 2 | |
Net | 1 | 2 | |
Non-compete agreements | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
INTANGIBLE ASSETS | |||
Carrying Amount | 3 | 4 | |
Accumulated Amortization | 2 | 2 | |
Net | 1 | 2 | |
Other intangibles | |||
INTANGIBLE ASSETS | |||
Carrying Amount | 83 | 82 | |
Accumulated Amortization | 60 | 61 | |
Net | 23 | 21 | |
Other intangibles | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
INTANGIBLE ASSETS | |||
Carrying Amount | 91 | 90 | |
Accumulated Amortization | 68 | 69 | |
Net | $ 23 | $ 21 |
OTHER NONCURRENT ASSETS (Detail
OTHER NONCURRENT ASSETS (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
OTHER NONCURRENT ASSETS | ||||
Capitalized turnaround costs, net | $ 280 | $ 233 | ||
Catalyst assets, net | 56 | 46 | ||
Other | 217 | 218 | ||
Total | [1] | 553 | 497 | |
Amortization expense of catalyst assets | $ 22 | $ 15 | $ 17 | |
[1] | At December 31, 2018 and December 31, 2017, respectively, $7 and $15 of cash and cash equivalents, nil and $11 of restricted cash, 30 and $35 of accounts and notes receivable (net), $49 and $46 of inventories, $5 and $7 of other current assets, $265 and $283 of property, plant and equipment (net), $10 each of intangible assets (net), $52 and $43 of other noncurrent assets, $123 and $109 of accounts payable, $30 and $32 of accrued liabilities, $25 and $21 of current portion of debt, $61 and $86 of longterm debt, and $97 and $98 of other noncurrent liabilities from consolidated variable interest entities are included in the respective Balance Sheet captions above. See “Note 8. Variable Interest Entities.” |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
ACCRUED LIABILITIES | |||
Payroll and related accruals | $ 150 | $ 172 | |
Income taxes | 86 | 62 | |
Volume and rebate accruals | 66 | 58 | |
Taxes other than income taxes | 60 | 77 | |
Restructuring and plant closing reserves | 23 | 15 | |
Interest | 19 | 20 | |
Pension liabilities | 11 | 15 | |
Other postretirement benefits | 6 | 7 | |
Environmental accruals | 2 | 6 | |
Other miscellaneous accruals | 131 | 137 | |
Total | [1] | 554 | 569 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
ACCRUED LIABILITIES | |||
Payroll and related accruals | 150 | 172 | |
Income taxes | 86 | 62 | |
Volume and rebate accruals | 66 | 58 | |
Taxes other than income taxes | 60 | 77 | |
Restructuring and plant closing reserves | 23 | 15 | |
Interest | 19 | 20 | |
Pension liabilities | 11 | 15 | |
Other postretirement benefits | 6 | 7 | |
Environmental accruals | 2 | 6 | |
Other miscellaneous accruals | 128 | 134 | |
Total | [1] | $ 551 | $ 566 |
[1] | At December 31, 2018 and December 31, 2017, respectively, $7 and $15 of cash and cash equivalents, nil and $11 of restricted cash, 30 and $35 of accounts and notes receivable (net), $49 and $46 of inventories, $5 and $7 of other current assets, $265 and $283 of property, plant and equipment (net), $10 each of intangible assets (net), $52 and $43 of other noncurrent assets, $123 and $109 of accounts payable, $30 and $32 of accrued liabilities, $25 and $21 of current portion of debt, $61 and $86 of longterm debt, and $97 and $98 of other noncurrent liabilities from consolidated variable interest entities are included in the respective Balance Sheet captions above. See “Note 8. Variable Interest Entities.” |
RESTRUCTURING, IMPAIRMENT AND_3
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS - ACCRUED RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS BY TYPE OF COST AND INITIATIVE (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Accrued restructuring costs roll forward | |||
Accrued liabilities at the beginning of the period | $ 53 | $ 68 | $ 77 |
Reversal of reserves no longer required | (30) | (2) | |
Distribution of prefunded restructuring costs | (11) | ||
Foreign currency effect on liability balance | 3 | (4) | |
Accrued liabilities at the end of the period | 29 | 53 | 68 |
Workforce reductions | |||
Accrued restructuring costs roll forward | |||
Accrued liabilities at the beginning of the period | 5 | 4 | 19 |
Reversal of reserves no longer required | (1) | (2) | |
Distribution of prefunded restructuring costs | (5) | ||
Foreign currency effect on liability balance | 1 | (1) | |
Accrued liabilities at the end of the period | $ 6 | 5 | 4 |
Number of positions terminated | item | 50 | ||
Number of positions not terminated | item | 8 | ||
Demolition and decommissioning | |||
Accrued restructuring costs roll forward | |||
Accrued liabilities at the beginning of the period | $ 2 | 19 | 16 |
Distribution of prefunded restructuring costs | (5) | ||
Foreign currency effect on liability balance | 1 | (1) | |
Accrued liabilities at the end of the period | 1 | 2 | 19 |
Non-cancelable lease and contract termination costs | |||
Accrued restructuring costs roll forward | |||
Accrued liabilities at the beginning of the period | 41 | 40 | 37 |
Reversal of reserves no longer required | (29) | ||
Foreign currency effect on liability balance | 1 | (2) | |
Accrued liabilities at the end of the period | 12 | 41 | 40 |
Other restructuring costs | |||
Accrued restructuring costs roll forward | |||
Accrued liabilities at the beginning of the period | 5 | 5 | 5 |
Distribution of prefunded restructuring costs | (1) | ||
Accrued liabilities at the end of the period | 10 | 5 | 5 |
2016 initiatives | |||
Accrued restructuring costs roll forward | |||
Accrued liabilities at the beginning of the period | 2 | ||
Restructuring charges | 6 | ||
Restructuring payments | (5) | ||
Accrued liabilities at the end of the period | 1 | 2 | |
2016 initiatives | Workforce reductions | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 1 | ||
Restructuring payments | (1) | ||
2016 initiatives | Other restructuring costs | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 5 | ||
Restructuring payments | (4) | ||
2017 and prior initiatives | |||
Accrued restructuring costs roll forward | |||
Restructuring charges (credits) | 2 | ||
Restructuring charges | 2 | ||
Restructuring payments | (5) | ||
2017 and prior initiatives | Workforce reductions | |||
Accrued restructuring costs roll forward | |||
Restructuring payments | (2) | ||
2017 and prior initiatives | Demolition and decommissioning | |||
Accrued restructuring costs roll forward | |||
Restructuring payments | (1) | ||
2017 and prior initiatives | Non-cancelable lease and contract termination costs | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 2 | ||
Restructuring payments | (2) | ||
2015 and prior initiatives | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 47 | ||
Restructuring payments | (40) | ||
2015 and prior initiatives | Workforce reductions | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 1 | ||
Restructuring payments | (8) | ||
2015 and prior initiatives | Demolition and decommissioning | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 24 | ||
Restructuring payments | (15) | ||
2015 and prior initiatives | Non-cancelable lease and contract termination costs | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 9 | ||
Restructuring payments | (4) | ||
2015 and prior initiatives | Other restructuring costs | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 13 | ||
Restructuring payments | $ (13) | ||
2017 initiatives | |||
Accrued restructuring costs roll forward | |||
Accrued liabilities at the beginning of the period | |||
Restructuring charges | 12 | ||
Restructuring payments | (10) | ||
Accrued liabilities at the end of the period | 9 | ||
2017 initiatives | Workforce reductions | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 10 | ||
Restructuring payments | (8) | ||
2017 initiatives | Other restructuring costs | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 2 | ||
Restructuring payments | (2) | ||
2016 and prior initiatives | |||
Accrued restructuring costs roll forward | |||
Restructuring charges (credits) | 6 | ||
Restructuring charges | 6 | ||
Restructuring payments | (26) | ||
2016 and prior initiatives | Workforce reductions | |||
Accrued restructuring costs roll forward | |||
Restructuring charges (credits) | (1) | ||
Restructuring payments | (1) | ||
2016 and prior initiatives | Demolition and decommissioning | |||
Accrued restructuring costs roll forward | |||
Restructuring charges (credits) | 3 | ||
Restructuring payments | (21) | ||
2016 and prior initiatives | Non-cancelable lease and contract termination costs | |||
Accrued restructuring costs roll forward | |||
Restructuring charges (credits) | 2 | ||
Restructuring payments | (2) | ||
2016 and prior initiatives | Other restructuring costs | |||
Accrued restructuring costs roll forward | |||
Restructuring charges (credits) | 2 | ||
Restructuring payments | $ (2) | ||
2018 initiatives | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 15 | ||
Restructuring payments | (6) | ||
2018 initiatives | Workforce reductions | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 5 | ||
Restructuring payments | (1) | ||
2018 initiatives | Other restructuring costs | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 10 | ||
Restructuring payments | $ (5) |
RESTRUCTURING, IMPAIRMENT AND_4
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS - ACCRUED LIABILITIES BY INITIATIVE (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accrued liabilities by initiatives | ||||
Accrued liabilities | $ 29 | $ 53 | $ 68 | $ 77 |
2015 initiatives | ||||
Accrued liabilities by initiatives | ||||
Accrued liabilities | 19 | 51 | ||
2016 initiatives | ||||
Accrued liabilities by initiatives | ||||
Accrued liabilities | 1 | $ 2 | ||
2017 initiatives | ||||
Accrued liabilities by initiatives | ||||
Accrued liabilities | $ 9 |
RESTRUCTURING, IMPAIRMENT AND_5
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS - RESERVES FOR RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accrued restructuring costs roll forward | |||
Accrued liabilities at the beginning of the period | $ 53 | $ 68 | $ 77 |
Reversal of reserves no longer required | (30) | (2) | |
Distribution of prefunded restructuring costs | (11) | ||
Foreign currency effect on liability balance | 3 | (4) | |
Accrued liabilities at the end of the period | 29 | 53 | 68 |
Current portion of restructuring reserves | 23 | 15 | |
Long-term portion of restructuring reserves | 6 | ||
Corporate and other | |||
Accrued restructuring costs roll forward | |||
Accrued liabilities at the beginning of the period | 1 | 2 | 4 |
Reversal of reserves no longer required | (1) | (1) | |
Accrued liabilities at the end of the period | 7 | 1 | 2 |
Current portion of restructuring reserves | 7 | ||
Polyurethanes | Operating segments | |||
Accrued restructuring costs roll forward | |||
Accrued liabilities at the beginning of the period | 1 | 2 | 5 |
Reversal of reserves no longer required | (1) | ||
Accrued liabilities at the end of the period | 1 | 2 | |
Performance Products | Operating segments | |||
Accrued restructuring costs roll forward | |||
Accrued liabilities at the beginning of the period | 1 | 9 | |
Restructuring charges | 16 | ||
Distribution of prefunded restructuring costs | (6) | ||
Accrued liabilities at the end of the period | 2 | 1 | |
Current portion of restructuring reserves | 2 | ||
Advanced Materials | Operating segments | |||
Accrued restructuring costs roll forward | |||
Accrued liabilities at the beginning of the period | 3 | 3 | 4 |
Foreign currency effect on liability balance | (1) | ||
Accrued liabilities at the end of the period | 6 | 3 | 3 |
Current portion of restructuring reserves | 4 | ||
Long-term portion of restructuring reserves | 2 | ||
Textile Effects | Operating segments | |||
Accrued restructuring costs roll forward | |||
Accrued liabilities at the beginning of the period | 47 | 61 | 55 |
Reversal of reserves no longer required | (29) | ||
Distribution of prefunded restructuring costs | (5) | ||
Foreign currency effect on liability balance | 3 | (3) | |
Accrued liabilities at the end of the period | 14 | 47 | 61 |
Current portion of restructuring reserves | 10 | ||
Long-term portion of restructuring reserves | 4 | ||
2015 initiatives | |||
Accrued restructuring costs roll forward | |||
Accrued liabilities at the beginning of the period | 51 | ||
Accrued liabilities at the end of the period | 19 | 51 | |
2015 and prior initiatives | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 47 | ||
Restructuring payments | (40) | ||
2015 and prior initiatives | Corporate and other | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 3 | ||
Restructuring payments | (4) | ||
2015 and prior initiatives | Polyurethanes | Operating segments | |||
Accrued restructuring costs roll forward | |||
Restructuring payments | (3) | ||
2015 and prior initiatives | Performance Products | Operating segments | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 16 | ||
Restructuring payments | (19) | ||
2015 and prior initiatives | Textile Effects | Operating segments | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 28 | ||
Restructuring payments | (14) | ||
2016 initiatives | |||
Accrued restructuring costs roll forward | |||
Accrued liabilities at the beginning of the period | 2 | ||
Restructuring charges | 6 | ||
Restructuring payments | (5) | ||
Accrued liabilities at the end of the period | 1 | 2 | |
2016 initiatives | Corporate and other | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 1 | ||
Restructuring payments | (1) | ||
2016 initiatives | Polyurethanes | Operating segments | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 4 | ||
Restructuring payments | (3) | ||
2016 initiatives | Textile Effects | Operating segments | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 1 | ||
Restructuring payments | $ (1) | ||
2016 and prior initiatives | |||
Accrued restructuring costs roll forward | |||
Restructuring charges (credits) | 6 | ||
Restructuring charges | 6 | ||
Restructuring payments | (26) | ||
2016 and prior initiatives | Polyurethanes | Operating segments | |||
Accrued restructuring costs roll forward | |||
Restructuring payments | (1) | ||
2016 and prior initiatives | Textile Effects | Operating segments | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 6 | ||
Restructuring payments | (25) | ||
2017 and prior initiatives | |||
Accrued restructuring costs roll forward | |||
Restructuring charges (credits) | 2 | ||
Restructuring charges | 2 | ||
Restructuring payments | (5) | ||
2017 and prior initiatives | Corporate and other | |||
Accrued restructuring costs roll forward | |||
Restructuring charges (credits) | 5 | ||
Restructuring payments | (3) | ||
2017 and prior initiatives | Polyurethanes | Operating segments | |||
Accrued restructuring costs roll forward | |||
Restructuring payments | (1) | ||
2017 and prior initiatives | Performance Products | Operating segments | |||
Accrued restructuring costs roll forward | |||
Restructuring charges (credits) | 1 | ||
Restructuring payments | (1) | ||
2017 and prior initiatives | Textile Effects | Operating segments | |||
Accrued restructuring costs roll forward | |||
Restructuring charges (credits) | (4) | ||
2017 initiatives | |||
Accrued restructuring costs roll forward | |||
Accrued liabilities at the beginning of the period | |||
Restructuring charges | 12 | ||
Restructuring payments | (10) | ||
Accrued liabilities at the end of the period | 9 | ||
2017 initiatives | Corporate and other | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 4 | ||
Restructuring payments | (5) | ||
2017 initiatives | Performance Products | Operating segments | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 1 | ||
2017 initiatives | Textile Effects | Operating segments | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 7 | ||
Restructuring payments | $ (5) | ||
2018 initiatives | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 15 | ||
Restructuring payments | (6) | ||
2018 initiatives | Corporate and other | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 10 | ||
Restructuring payments | (5) | ||
2018 initiatives | Performance Products | Operating segments | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | 2 | ||
Restructuring payments | (1) | ||
2018 initiatives | Advanced Materials | Operating segments | |||
Accrued restructuring costs roll forward | |||
Restructuring charges | $ 3 |
RESTRUCTURING, IMPAIRMENT AND_6
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS - CASH AND NONCASH (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring, impairment and plant closing costs | |||||||||||
Pension-related charges | $ 1 | ||||||||||
Accelerated depreciation | 2 | ||||||||||
Reversal of reserves no longer required | $ (30) | $ (2) | |||||||||
Other non-cash credits | (1) | ||||||||||
Gain on sale of land | (4) | ||||||||||
Other non-cash charges | 8 | ||||||||||
Total restructuring, impairment and plant closing costs | $ (13) | $ 5 | $ 1 | $ 2 | $ 7 | $ 1 | $ 3 | $ 9 | (5) | 20 | 47 |
2015 and prior initiatives | |||||||||||
Restructuring, impairment and plant closing costs | |||||||||||
Restructuring charges | 47 | ||||||||||
2016 initiatives | |||||||||||
Restructuring, impairment and plant closing costs | |||||||||||
Restructuring charges | $ 6 | ||||||||||
2016 and prior initiatives | |||||||||||
Restructuring, impairment and plant closing costs | |||||||||||
Restructuring charges | 6 | ||||||||||
2017 and prior initiatives | |||||||||||
Restructuring, impairment and plant closing costs | |||||||||||
Restructuring charges | 2 | ||||||||||
2017 initiatives | |||||||||||
Restructuring, impairment and plant closing costs | |||||||||||
Restructuring charges | $ 12 | ||||||||||
2018 initiatives | |||||||||||
Restructuring, impairment and plant closing costs | |||||||||||
Restructuring charges | $ 15 |
RESTRUCTURING, IMPAIRMENT AND_7
RESTRUCTURING, IMPAIRMENT AND PLANT CLOSING COSTS - NARRATIVE (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2023 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring, impairment and plant closing costs | ||||||
Reversal of reserves no longer required | $ (30) | $ (2) | ||||
Gain on sale of land | 4 | |||||
Operating segments | Performance Products | ||||||
Restructuring, impairment and plant closing costs | ||||||
Restructuring charges | 16 | |||||
Operating segments | Textile Effects | ||||||
Restructuring, impairment and plant closing costs | ||||||
Reversal of reserves no longer required | (29) | |||||
Operating segments | Textile Effects | Basel, Switzerland | ||||||
Restructuring, impairment and plant closing costs | ||||||
Restructuring charges | $ 6 | |||||
Gain on sale of land | 4 | |||||
Corporate and other | ||||||
Restructuring, impairment and plant closing costs | ||||||
Reversal of reserves no longer required | (1) | (1) | ||||
Corporate Initiatives | Corporate and other | ||||||
Restructuring, impairment and plant closing costs | ||||||
Restructuring charges | 15 | |||||
Workforce reductions | ||||||
Restructuring, impairment and plant closing costs | ||||||
Reversal of reserves no longer required | (1) | (2) | ||||
Workforce reductions | Operating segments | Textile Effects | ||||||
Restructuring, impairment and plant closing costs | ||||||
Restructuring charges | 7 | |||||
Non-cancelable lease and contract termination costs | ||||||
Restructuring, impairment and plant closing costs | ||||||
Reversal of reserves no longer required | $ (29) | |||||
Non-cancelable lease and contract termination costs | Operating segments | Textile Effects | ||||||
Restructuring, impairment and plant closing costs | ||||||
Restructuring charges | 9 | |||||
Non-cancelable lease and contract termination costs | Operating segments | Textile Effects | Basel, Switzerland | ||||||
Restructuring, impairment and plant closing costs | ||||||
Restructuring charges | 2 | |||||
Restructuring settlement | $ 10 | |||||
Reversal of reserves no longer required | $ (29) | |||||
Demolition and decommissioning | Operating segments | Textile Effects | ||||||
Restructuring, impairment and plant closing costs | ||||||
Restructuring charges | $ 20 | |||||
Demolition and decommissioning | Operating segments | Textile Effects | Basel, Switzerland | ||||||
Restructuring, impairment and plant closing costs | ||||||
Restructuring charges | $ 4 | |||||
Forecast | Non-cancelable lease and contract termination costs | Operating segments | Textile Effects | Basel, Switzerland | ||||||
Restructuring, impairment and plant closing costs | ||||||
Payments for restructuring | $ 2 | $ 8 |
OTHER NONCURRENT LIABILITIES (D
OTHER NONCURRENT LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
OTHER NONCURRENT LIABILITIES | |||
Pension liabilities | $ 718 | $ 715 | |
Other postretirement benefits | 65 | 73 | |
Employee benefit accrual | 32 | 34 | |
Other | 258 | 264 | |
Total | [1] | 1,073 | 1,086 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
OTHER NONCURRENT LIABILITIES | |||
Pension liabilities | 718 | 715 | |
Other postretirement benefits | 65 | 73 | |
Employee benefit accrual | 32 | 34 | |
Other | 246 | 250 | |
Total | [1] | $ 1,061 | $ 1,072 |
[1] | At December 31, 2018 and December 31, 2017, respectively, $7 and $15 of cash and cash equivalents, nil and $11 of restricted cash, 30 and $35 of accounts and notes receivable (net), $49 and $46 of inventories, $5 and $7 of other current assets, $265 and $283 of property, plant and equipment (net), $10 each of intangible assets (net), $52 and $43 of other noncurrent assets, $123 and $109 of accounts payable, $30 and $32 of accrued liabilities, $25 and $21 of current portion of debt, $61 and $86 of longterm debt, and $97 and $98 of other noncurrent liabilities from consolidated variable interest entities are included in the respective Balance Sheet captions above. See “Note 8. Variable Interest Entities.” |
DEBT - DEBT OUTSTANDING (Detail
DEBT - DEBT OUTSTANDING (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt | |||
Total debt - excluding debt to affiliates | $ 2,320 | $ 2,298 | |
Total current portion of debt | [1] | 96 | 40 |
Long-term portion of debt | [1] | 2,224 | 2,258 |
Total debt | 2,320 | 2,298 | |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Total debt - excluding debt to affiliates | 2,320 | 2,298 | |
Total current portion of debt | [1] | 96 | 40 |
Long-term portion of debt | [1] | 2,224 | 2,258 |
Notes payable to affiliates-current | 100 | 100 | |
Notes payable to affiliates-noncurrent | 488 | 742 | |
Total debt | 2,908 | 3,140 | |
2018 Revolving Credit Facility | |||
Debt | |||
Total debt - excluding debt to affiliates | 50 | ||
2018 Revolving Credit Facility | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Total debt - excluding debt to affiliates | 50 | ||
Accounts receivable programs | |||
Debt | |||
Total debt - excluding debt to affiliates | 252 | 180 | |
Accounts receivable programs | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Total debt - excluding debt to affiliates | 252 | 180 | |
Senior notes | |||
Debt | |||
Total debt - excluding debt to affiliates | 1,892 | 1,927 | |
Senior notes | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Total debt - excluding debt to affiliates | 1,892 | 1,927 | |
Variable interest entities | |||
Debt | |||
Total debt - excluding debt to affiliates | 86 | 107 | |
Variable interest entities | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Total debt - excluding debt to affiliates | 86 | 107 | |
Other | |||
Debt | |||
Total debt - excluding debt to affiliates | 40 | 84 | |
Other | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Total debt - excluding debt to affiliates | $ 40 | $ 84 | |
[1] | At December 31, 2018 and December 31, 2017, respectively, $7 and $15 of cash and cash equivalents, nil and $11 of restricted cash, 30 and $35 of accounts and notes receivable (net), $49 and $46 of inventories, $5 and $7 of other current assets, $265 and $283 of property, plant and equipment (net), $10 each of intangible assets (net), $52 and $43 of other noncurrent assets, $123 and $109 of accounts payable, $30 and $32 of accrued liabilities, $25 and $21 of current portion of debt, $61 and $86 of longterm debt, and $97 and $98 of other noncurrent liabilities from consolidated variable interest entities are included in the respective Balance Sheet captions above. See “Note 8. Variable Interest Entities.” |
DEBT - ISSUANCE COSTS (Details)
DEBT - ISSUANCE COSTS (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
DEBT | ||
Debt issuance costs | $ 8 | $ 11 |
DEBT - CREDIT FACILITIES (Detai
DEBT - CREDIT FACILITIES (Details) - USD ($) $ in Millions | May 21, 2018 | Apr. 23, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt | ||||||
Loss on early extinguishment of debt | $ 3 | $ 54 | $ 3 | |||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||||
Debt | ||||||
Loss on early extinguishment of debt | 3 | $ 54 | $ 3 | |||
2018 Revolving Credit Facility | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||||
Debt | ||||||
Optional increase to committed amount of facility | 500 | |||||
Committed Amount | $ 1,200 | 1,200 | ||||
Principal Outstanding | 50 | 50 | ||||
Carrying value | 50 | 50 | ||||
Amount of letter of credit and bank guarantees issued and outstanding | 9 | $ 9 | ||||
Proceeds from borrowings | $ 275 | |||||
Repayment of debt | $ 225 | |||||
2018 Revolving Credit Facility | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | LIBOR | ||||||
Debt | ||||||
Basis spread (as a percent) | 1.75% | |||||
Prior Credit Facility | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||||
Debt | ||||||
Loss on early extinguishment of debt | 3 | |||||
Repayment of debt | $ 275 | |||||
Demilec | Prior Credit Facility | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||||
Debt | ||||||
Proceeds from borrowings | $ 275 | |||||
Demilec | U.S. A/R Program | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||||
Debt | ||||||
Proceeds from borrowings | $ 75 |
DEBT - ACCOUNT RECEIVABLE PROGR
DEBT - ACCOUNT RECEIVABLE PROGRAMS (Details) € in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Debt | |||
Debt outstanding | $ 2,320 | $ 2,298 | |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Debt outstanding | 2,908 | 3,140 | |
Accounts receivable programs | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Continuing operations | |||
Debt | |||
Accounts receivable pledged as collateral | 341 | $ 334 | |
U.S. A/R Program Maturing April 2020 | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Maximum Funding Availability | 250 | ||
Debt outstanding | 165 | ||
Amount of letter of credit and bank guarantees issued and outstanding | 5 | ||
EU A/R Program Maturing April 2020 | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Maximum Funding Availability | € 150 | 171 | |
Debt outstanding | € 76 | $ 87 | |
LIBOR | U.S. A/R Program Maturing April 2020 | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Basis spread (as a percent) | 0.95% | ||
LIBOR | EU A/R Program Maturing April 2020 | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Basis spread (as a percent) | 1.30% |
DEBT - NOTES (Details)
DEBT - NOTES (Details) € in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Debt | |||
Carrying amount of debt | $ 2,320 | $ 2,298 | |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Carrying amount of debt | $ 2,908 | $ 3,140 | |
2020 Senior Notes | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Interest rate (as a percent) | 4.875% | 4.875% | |
Principal Outstanding | $ 650 | ||
Carrying amount of debt | 648 | ||
Unamortized Discounts and Debt Issuance Costs | $ (2) | ||
2021 Senior Notes | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Interest rate (as a percent) | 5.125% | 5.125% | |
Principal Outstanding | € | € 445 | ||
Carrying amount of debt | € 444 | $ 507 | |
2022 Senior Notes | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Interest rate (as a percent) | 5.125% | 5.125% | |
Principal Outstanding | $ 400 | ||
Carrying amount of debt | 398 | ||
Unamortized Discounts and Debt Issuance Costs | $ (2) | ||
2025 Senior Notes | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Interest rate (as a percent) | 4.25% | 4.25% | |
Principal Outstanding | € | € 300 | ||
Carrying amount of debt | € 298 | $ 339 | |
Unamortized Discounts and Debt Issuance Costs | $ (3) | ||
Debt Instrument Redemption Period Upon Occurrence Certain Change Of Control Events | Senior notes | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Debt | |||
Percentage of principal amount at which the entity may redeem some or all of the notes | 101.00% |
DEBT - VARIABLE INTEREST ENTITY
DEBT - VARIABLE INTEREST ENTITY DEBT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Debt | |||
Total debt - excluding debt to affiliates | $ 2,320 | $ 2,298 | |
Total current portion of debt | [1] | 96 | 40 |
Long-term portion of debt | [1] | $ 2,224 | $ 2,258 |
Arabian Amines Company | |||
Debt | |||
Variable interest entity ownership percentage | 50.00% | ||
Total debt - excluding debt to affiliates | $ 86 | ||
Total current portion of debt | 25 | ||
Long-term portion of debt | $ 61 | ||
[1] | At December 31, 2018 and December 31, 2017, respectively, $7 and $15 of cash and cash equivalents, nil and $11 of restricted cash, 30 and $35 of accounts and notes receivable (net), $49 and $46 of inventories, $5 and $7 of other current assets, $265 and $283 of property, plant and equipment (net), $10 each of intangible assets (net), $52 and $43 of other noncurrent assets, $123 and $109 of accounts payable, $30 and $32 of accrued liabilities, $25 and $21 of current portion of debt, $61 and $86 of longterm debt, and $97 and $98 of other noncurrent liabilities from consolidated variable interest entities are included in the respective Balance Sheet captions above. See “Note 8. Variable Interest Entities.” |
DEBT - INTERCOMPANY NOTES AND O
DEBT - INTERCOMPANY NOTES AND OTHER (Details) ¥ in Millions, $ in Millions | Jul. 05, 2018CNY (¥) | Jul. 05, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Debt | ||||
Loan to subsidiary | $ 588 | |||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||
Debt | ||||
Notes payable to affiliates-current | $ 100 | $ 100 | ||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | U.S. A/R Program | ||||
Debt | ||||
Reduction in applicable margin on borrowings (as a percent) | 0.10% | |||
Huntsman Polyurethanes Shanghai | ||||
Debt | ||||
Early repayment of term loan | ¥ 277 | $ 42 | ||
Other debt outstanding | $ 0 | |||
Maximum | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | U.S. A/R Program | ||||
Debt | ||||
Reduction in applicable margin on borrowings (as a percent) | 0.25% |
DEBT - MATURITIES (Details)
DEBT - MATURITIES (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Scheduled maturities of our debt (excluding debt to affiliates) | ||
2,019 | $ 96 | |
2,020 | 933 | |
2,021 | 533 | |
2,022 | 402 | |
2,023 | 2 | |
Thereafter | 354 | |
Total debt - excluding debt to affiliates | $ 2,320 | $ 2,298 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Aug. 31, 2017USD ($) | Nov. 30, 2014EUR (€)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Nov. 30, 2014USD ($)item | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||
Accumulated other comprehensive loss expected to be reclassified to earnings | $ 0 | |||||||
Notional Amounts | € 510 | $ 581 | ||||||
Amount of gain (loss) recognized on the hedge of net investments | $ 35 | $ (96) | $ 27 | |||||
Proceeds from termination | 7 | |||||||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||
Proceeds from termination | 7 | |||||||
Forward foreign currency contracts | ||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||
Notional Amounts | $ 93 | $ 151 | ||||||
Maximum maturity period of spot or forward exchange rate contracts | 3 months | |||||||
Approximate term of foreign currency contracts | 1 month | |||||||
Cross Currency Interest Rate Contracts | Designated as Hedging Instrument | ||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||
Notional Amounts | € 161 | $ 200 | ||||||
Proceeds from termination | $ 7 | |||||||
Five years cross currency interest rate contract | Designated as Hedging Instrument | ||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||
Number of derivative instruments held | item | 2 | 2 | ||||||
Term of cross currency interest rate contract | 5 years | |||||||
Eight years cross currency interest rate contract | Designated as Hedging Instrument | ||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||
Number of derivative instruments held | item | 1 | 1 | ||||||
Term of cross currency interest rate contract | 8 years |
FAIR VALUE - FAIR VALUES OF FIN
FAIR VALUE - FAIR VALUES OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair values of financial instruments | ||
Non-qualified employee benefit plan investments | $ 32 | $ 33 |
Carrying Amount | ||
Fair values of financial instruments | ||
Non-qualified employee benefit plan investments | 23 | 33 |
Forward swap contract related to the sale of investment in Venator | 14 | |
Long-term debt (including current portion) | (2,320) | (2,298) |
Estimated Fair Value | ||
Fair values of financial instruments | ||
Non-qualified employee benefit plan investments | 23 | 33 |
Forward swap contract related to the sale of investment in Venator | 14 | |
Long-term debt (including current portion) | $ (2,403) | $ (2,483) |
FAIR VALUE - ASSETS AND LIABILI
FAIR VALUE - ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS (Details) - Recurring basis - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Non-qualified employee benefit plan investments | $ 23 | $ 33 |
Forward swap contract related to the sale of investment in Venator | 14 | |
Total assets | 37 | |
Quoted prices in active markets for identical assets (Level 1) | ||
Assets: | ||
Non-qualified employee benefit plan investments | 23 | $ 33 |
Total assets | 23 | |
Significant other observable inputs (Level 2) | ||
Assets: | ||
Forward swap contract related to the sale of investment in Venator | 14 | |
Total assets | $ 14 |
FAIR VALUE - INSTRUMENTS MEASUR
FAIR VALUE - INSTRUMENTS MEASURED AT FAIR VALUE ON A RECURRING BASIS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) AND INSTRUMENTS MEASURED AT FAIR VALUE ON A NON-RECURRING BASIS (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | |
Reconciliation of beginning and ending balances for assets measured at fair value on a recurring basis | ||
Number of instruments categorized as Level 3 | item | 0 | |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||
Transfers out of Level 3 | $ 0 | |
Recurring basis | ||
Total (losses) gains: | ||
Total net gains included in earnings | $ 0 | |
Recurring basis | Cross Currency Interest Rate Contracts | ||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||
Balance at beginning of period | $ 0 | 29 |
Total (losses) gains: | ||
Included in other comprehensive (loss) income | (22) | |
Purchases, sales, issuances and settlements | (7) | |
Balance at end of period | $ 0 |
EMPLOYEE BENEFIT PLANS - INFORM
EMPLOYEE BENEFIT PLANS - INFORMATION (Details) | 12 Months Ended |
Dec. 31, 2018item | |
Defined Benefit Plans | Minimum | |
EMPLOYEE BENEFIT PLANS | |
Annual pay credits, percentage of eligible pay | 6.00% |
Defined Benefit Plans | Maximum | |
EMPLOYEE BENEFIT PLANS | |
Annual pay credits, percentage of eligible pay | 12.00% |
Other Postretirement Benefit Plans | |
EMPLOYEE BENEFIT PLANS | |
Number of fully insured Medicare Part D plans in which participants have access | 2 |
Salary deferral plan for new hires | United States | Maximum | |
EMPLOYEE BENEFIT PLANS | |
Non-discretionary employer contributions (as a percent) | 6.00% |
Employer contribution (as a percent of compensation) | 4.00% |
Total employer contribution (as a percent) | 10.00% |
EMPLOYEE BENEFIT PLANS - CHANGE
EMPLOYEE BENEFIT PLANS - CHANGE IN BENEFIT OBLIGATION AND PLAN ASSETS (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plans | |||||
Change in plan assets | |||||
Fair value of plan assets at beginning of year | $ 2,700 | ||||
Fair value of plan assets at end of year | 2,500 | $ 2,700 | |||
Funded status | |||||
Fair value of plan assets | 2,700 | 2,700 | $ 2,500 | $ 2,700 | |
Defined Benefit Plans | United States | |||||
Change in benefit obligation | |||||
Benefit obligation at beginning of year | 1,153 | 1,049 | |||
Service cost | 32 | 30 | $ 30 | ||
Interest cost | 44 | 44 | 47 | ||
Settlements/transfers/divestitures | (6) | ||||
Actuarial (gain) loss | (81) | 91 | |||
Benefits paid | (62) | (61) | |||
Benefit obligation at end of year | 1,080 | 1,153 | 1,049 | ||
Change in plan assets | |||||
Fair value of plan assets at beginning of year | 821 | 721 | |||
Actual return on plan assets | (38) | 104 | |||
Settlements/transfers | (6) | ||||
Company contributions | 52 | 57 | |||
Benefits paid | (62) | (61) | |||
Fair value of plan assets at end of year | 767 | 821 | 721 | ||
Funded status | |||||
Fair value of plan assets | 821 | 721 | 721 | 767 | 821 |
Benefit obligation | 1,153 | 1,049 | 1,049 | 1,080 | 1,153 |
Accrued benefit cost | (313) | (332) | |||
Amounts recognized in balance sheet: | |||||
Current liability | (5) | (10) | |||
Noncurrent liability | (308) | (322) | |||
Total | (313) | (332) | |||
Defined Benefit Plans | Non-U.S. Defined Benefit Plans | |||||
Change in benefit obligation | |||||
Benefit obligation at beginning of year | 2,259 | 2,064 | |||
Service cost | 32 | 33 | 29 | ||
Interest cost | 37 | 35 | 41 | ||
Participant contributions | 5 | 5 | |||
Plan amendments | 4 | (1) | |||
Foreign currency exchange rate changes | (74) | 207 | |||
Special termination benefits | 1 | ||||
Settlements/transfers/divestitures | (3) | ||||
Actuarial (gain) loss | (30) | (10) | |||
Benefits paid | (73) | (75) | |||
Benefit obligation at end of year | 2,157 | 2,259 | 2,064 | ||
Change in plan assets | |||||
Fair value of plan assets at beginning of year | 1,883 | 1,639 | |||
Actual return on plan assets | (38) | 109 | |||
Foreign currency exchange rate changes | (62) | 166 | |||
Participant contributions | 5 | 5 | |||
Settlements/transfers | (3) | ||||
Company contributions | 39 | 39 | |||
Benefits paid | (73) | (75) | |||
Fair value of plan assets at end of year | 1,751 | 1,883 | 1,639 | ||
Funded status | |||||
Fair value of plan assets | 1,883 | 1,639 | 1,639 | 1,751 | 1,883 |
Benefit obligation | 2,259 | 2,064 | 2,064 | 2,157 | 2,259 |
Accrued benefit cost | (406) | (376) | |||
Amounts recognized in balance sheet: | |||||
Noncurrent asset | 10 | 22 | |||
Current liability | (6) | (5) | |||
Noncurrent liability | (410) | (393) | |||
Total | (406) | (376) | |||
Other Postretirement Benefit Plans | United States | |||||
Change in benefit obligation | |||||
Benefit obligation at beginning of year | 80 | 93 | |||
Service cost | 2 | 3 | 2 | ||
Interest cost | 3 | 3 | 4 | ||
Participant contributions | 2 | 2 | |||
Actuarial (gain) loss | (9) | (12) | |||
Benefits paid | (7) | (9) | |||
Benefit obligation at end of year | 71 | 80 | 93 | ||
Change in plan assets | |||||
Participant contributions | 2 | 2 | |||
Company contributions | 5 | 7 | |||
Benefits paid | (7) | (9) | |||
Funded status | |||||
Benefit obligation | $ 80 | $ 93 | $ 93 | 71 | 80 |
Accrued benefit cost | (71) | (80) | |||
Amounts recognized in balance sheet: | |||||
Current liability | (6) | (7) | |||
Noncurrent liability | (65) | (73) | |||
Total | $ (71) | $ (80) |
EMPLOYEE BENEFIT PLANS - AMOUNT
EMPLOYEE BENEFIT PLANS - AMOUNTS RECOGNIZED AND AMOUNTS EXPECTED TO BE RECOGNIZED IN OTHER COMPREHENSIVE INCOME LOSS AND COMPONENTS OF NET PERIODIC BENEFIT COST (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Components of net periodic benefit cost | |||
Amortization of actuarial loss | $ 71 | $ 73 | $ 55 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Components of net periodic benefit cost | |||
Amortization of actuarial loss | 75 | 76 | 58 |
Defined Benefit Plans | United States | |||
Amounts recognized in accumulated other comprehensive loss: | |||
Net actuarial loss | 401 | 419 | |
Prior service credit | (13) | (15) | |
Total | 388 | 404 | |
Amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during the next fiscal year | |||
Actuarial loss | 26 | ||
Prior service credit | (2) | ||
Total | 24 | ||
Components of net periodic benefit cost | |||
Service cost | 32 | 30 | 30 |
Interest cost | 44 | 44 | 47 |
Expected return on assets | (61) | (55) | (54) |
Amortization of prior service benefit | (2) | (2) | (5) |
Amortization of actuarial loss | 34 | 30 | 25 |
Settlement loss | 2 | ||
Net periodic benefit cost | 49 | 47 | 43 |
Defined Benefit Plans | United States | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Amounts recognized in accumulated other comprehensive loss: | |||
Net actuarial loss | 402 | 420 | |
Prior service credit | (13) | (15) | |
Total | 389 | 405 | |
Amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during the next fiscal year | |||
Actuarial loss | 27 | ||
Prior service credit | (2) | ||
Total | 25 | ||
Components of net periodic benefit cost | |||
Service cost | 32 | 30 | 30 |
Interest cost | 44 | 44 | 47 |
Expected return on assets | (61) | (55) | (54) |
Amortization of prior service benefit | (2) | (2) | (5) |
Amortization of actuarial loss | 34 | 30 | 25 |
Settlement loss | 2 | ||
Net periodic benefit cost | 49 | 47 | 43 |
Defined Benefit Plans | Non-U.S. Defined Benefit Plans | |||
Amounts recognized in accumulated other comprehensive loss: | |||
Net actuarial loss | 784 | 1,000 | |
Prior service credit | (27) | (29) | |
Total | 757 | 971 | |
Amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during the next fiscal year | |||
Actuarial loss | 45 | ||
Prior service credit | (4) | ||
Total | 41 | ||
Components of net periodic benefit cost | |||
Service cost | 32 | 33 | 29 |
Interest cost | 37 | 35 | 41 |
Expected return on assets | (109) | (100) | (93) |
Amortization of prior service benefit | (5) | (5) | (4) |
Amortization of actuarial loss | 38 | 45 | 31 |
Special termination benefits | 1 | ||
Net periodic benefit cost | (7) | 9 | 4 |
Defined Benefit Plans | Non-U.S. Defined Benefit Plans | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Amounts recognized in accumulated other comprehensive loss: | |||
Net actuarial loss | 793 | 1,030 | |
Prior service credit | (27) | (29) | |
Total | 766 | 1,001 | |
Amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during the next fiscal year | |||
Actuarial loss | 48 | ||
Prior service credit | (4) | ||
Total | 44 | ||
Components of net periodic benefit cost | |||
Service cost | 32 | 33 | 29 |
Interest cost | 37 | 35 | 41 |
Expected return on assets | (109) | (100) | (93) |
Amortization of prior service benefit | (5) | (5) | (4) |
Amortization of actuarial loss | 41 | 48 | 34 |
Special termination benefits | 1 | ||
Net periodic benefit cost | (4) | 12 | 7 |
Other Postretirement Benefit Plans | United States | |||
Amounts recognized in accumulated other comprehensive loss: | |||
Net actuarial loss | 21 | 30 | |
Prior service credit | (38) | (45) | |
Total | (17) | (15) | |
Amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during the next fiscal year | |||
Actuarial loss | 1 | ||
Prior service credit | (5) | ||
Total | (4) | ||
Components of net periodic benefit cost | |||
Service cost | 2 | 3 | 2 |
Interest cost | 3 | 3 | 4 |
Amortization of prior service benefit | (6) | (6) | (7) |
Amortization of actuarial loss | 2 | 3 | 2 |
Net periodic benefit cost | 1 | 3 | 1 |
Other Postretirement Benefit Plans | United States | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Amounts recognized in accumulated other comprehensive loss: | |||
Net actuarial loss | 21 | 30 | |
Prior service credit | (38) | (45) | |
Total | (17) | (15) | |
Amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during the next fiscal year | |||
Actuarial loss | 1 | ||
Prior service credit | (5) | ||
Total | (4) | ||
Components of net periodic benefit cost | |||
Service cost | 2 | 3 | 2 |
Interest cost | 3 | 3 | 4 |
Amortization of prior service benefit | (6) | (6) | (7) |
Amortization of actuarial loss | 2 | 3 | 2 |
Net periodic benefit cost | $ 1 | $ 3 | $ 1 |
EMPLOYEE BENEFIT PLANS - AMOU_2
EMPLOYEE BENEFIT PLANS - AMOUNTS RECOGNIZED IN NET PERIODIC BENEFIT COST AND OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans | United States | |||
Amounts recognized in net periodic benefit cost and other comprehensive income (loss) | |||
Current year actuarial loss (gain) | $ 18 | $ 42 | $ 74 |
Amortization of actuarial loss | (34) | (30) | (25) |
Amortization of prior service credit | 2 | 2 | 5 |
Settlements | (2) | ||
Total recognized in other comprehensive income (loss) | (16) | 14 | 54 |
Amounts related to discontinued operations | 3 | ||
Total recognized in other comprehensive income (loss) in continuing operations | (16) | 17 | 54 |
Net periodic benefit cost | 49 | 47 | 43 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ 33 | $ 64 | $ 97 |
Projected benefit obligation: | |||
Discount rate (as a percent) | 4.39% | 3.74% | 4.24% |
Rate of compensation increase (as a percent) | 4.13% | 4.13% | 4.17% |
Net periodic pension cost: | |||
Discount rate (as a percent) | 3.74% | 4.24% | 4.90% |
Rate of compensation increase (as a percent) | 4.13% | 4.17% | 4.17% |
Expected return on plan assets (as a percent) | 7.55% | 7.55% | 7.54% |
Defined Benefit Plans | United States | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Amounts recognized in net periodic benefit cost and other comprehensive income (loss) | |||
Current year actuarial loss (gain) | $ 18 | $ 42 | $ 74 |
Amortization of actuarial loss | (34) | (30) | (25) |
Amortization of prior service credit | 2 | 2 | 5 |
Settlements | (2) | ||
Total recognized in other comprehensive income (loss) | (16) | 14 | 54 |
Amounts related to discontinued operations | 3 | ||
Total recognized in other comprehensive income (loss) in continuing operations | (16) | 17 | 54 |
Net periodic benefit cost | 49 | 47 | 43 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | 33 | 64 | 97 |
Defined Benefit Plans | Non-U.S. Defined Benefit Plans | |||
Amounts recognized in net periodic benefit cost and other comprehensive income (loss) | |||
Current year actuarial loss (gain) | 117 | (42) | 235 |
Amortization of actuarial loss | (38) | (61) | (42) |
Current year prior service (credit) cost | 4 | (2) | |
Amortization of prior service credit | 5 | 4 | 4 |
Curtailment (gain)/loss | 3 | ||
Total recognized in other comprehensive income (loss) | 88 | (98) | 197 |
Amounts related to discontinued operations | 37 | (65) | |
Total recognized in other comprehensive income (loss) in continuing operations | 88 | (61) | 132 |
Net periodic benefit cost | (7) | 9 | 4 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ 81 | $ (52) | $ 136 |
Projected benefit obligation: | |||
Discount rate (as a percent) | 1.75% | 1.65% | 1.61% |
Rate of compensation increase (as a percent) | 2.64% | 3.38% | 3.37% |
Net periodic pension cost: | |||
Discount rate (as a percent) | 1.65% | 1.61% | 2.15% |
Rate of compensation increase (as a percent) | 3.38% | 3.37% | 3.28% |
Expected return on plan assets (as a percent) | 5.88% | 5.68% | 5.91% |
Defined Benefit Plans | Non-U.S. Defined Benefit Plans | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Amounts recognized in net periodic benefit cost and other comprehensive income (loss) | |||
Current year actuarial loss (gain) | $ 117 | $ (42) | $ 235 |
Amortization of actuarial loss | (41) | (68) | (49) |
Current year prior service (credit) cost | 4 | (2) | |
Amortization of prior service credit | 5 | 4 | 4 |
Curtailment (gain)/loss | 3 | ||
Total recognized in other comprehensive income (loss) | 85 | (105) | 190 |
Amounts related to discontinued operations | 42 | (61) | |
Total recognized in other comprehensive income (loss) in continuing operations | 85 | (63) | 129 |
Net periodic benefit cost | (4) | 12 | 7 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | 81 | (51) | 136 |
Other Postretirement Benefit Plans | United States | |||
Amounts recognized in net periodic benefit cost and other comprehensive income (loss) | |||
Current year actuarial loss (gain) | (10) | (12) | 9 |
Amortization of actuarial loss | (2) | (3) | (2) |
Amortization of prior service credit | 6 | 6 | 7 |
Total recognized in other comprehensive income (loss) | (6) | (9) | 14 |
Amounts related to discontinued operations | (1) | ||
Total recognized in other comprehensive income (loss) in continuing operations | (6) | (9) | 13 |
Net periodic benefit cost | 1 | 3 | 1 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ (5) | $ (6) | $ 14 |
Projected benefit obligation: | |||
Discount rate (as a percent) | 4.26% | 3.57% | 4.03% |
Net periodic pension cost: | |||
Discount rate (as a percent) | 3.57% | 4.03% | 4.68% |
Other Postretirement Benefit Plans | United States | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Amounts recognized in net periodic benefit cost and other comprehensive income (loss) | |||
Current year actuarial loss (gain) | $ (10) | $ (12) | $ 9 |
Amortization of actuarial loss | (2) | (3) | (2) |
Amortization of prior service credit | 6 | 6 | 7 |
Total recognized in other comprehensive income (loss) | (6) | (9) | 14 |
Amounts related to discontinued operations | (1) | ||
Total recognized in other comprehensive income (loss) in continuing operations | (6) | (9) | 13 |
Net periodic benefit cost | 1 | 3 | 1 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ (5) | (6) | 14 |
Other Postretirement Benefit Plans | Non-U.S. Defined Benefit Plans | |||
Amounts recognized in net periodic benefit cost and other comprehensive income (loss) | |||
Amortization of actuarial loss | (1) | ||
Current year prior service (credit) cost | (2) | ||
Amortization of prior service credit | 2 | ||
Total recognized in other comprehensive income (loss) | 1 | (2) | |
Amounts related to discontinued operations | $ (1) | 3 | |
Total recognized in other comprehensive income (loss) in continuing operations | 1 | ||
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ 1 | ||
Projected benefit obligation: | |||
Discount rate (as a percent) | 3.50% | 3.30% | 3.50% |
Net periodic pension cost: | |||
Discount rate (as a percent) | 3.30% | 3.50% | 3.70% |
Other Postretirement Benefit Plans | Non-U.S. Defined Benefit Plans | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Amounts recognized in net periodic benefit cost and other comprehensive income (loss) | |||
Amortization of actuarial loss | $ (1) | ||
Current year prior service (credit) cost | $ (2) | ||
Amortization of prior service credit | 2 | ||
Total recognized in other comprehensive income (loss) | 1 | (2) | |
Amounts related to discontinued operations | $ (1) | 3 | |
Total recognized in other comprehensive income (loss) in continuing operations | 1 | ||
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ 1 |
EMPLOYEE BENEFIT PLANS - HEALTH
EMPLOYEE BENEFIT PLANS - HEALTH CARE TREND RATES, EFFECTS OF ONE PERCENT CHANGE IN HEALTH CARE COST RATES AND EXPECTED BENEFIT PAYMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Health care trend rate | ||
Health care trend rate (as a percent) | 6.75% | 6.75% |
Ultimate health care trend rate (as a percent) | 5.00% | 5.00% |
Effects of one-percent-point change in assumed health care cost trend rates | ||
Effect on postretirement benefit obligation, Increase | $ 1 | |
Effect on postretirement benefit obligation, Decrease | (2) | |
Expected benefit payments: | ||
Net transfer out of Level 3 assets due to a change in the significance of unobservable inputs for several investments | 0 | |
Defined Benefit Plans | United States | ||
Projected benefit obligation in excess of plan assets | ||
Projected benefit obligation | 1,080 | $ 1,153 |
Fair value of plan assets | 767 | 821 |
Accumulated benefit obligation in excess of plan assets | ||
Projected benefit obligation | 1,080 | 1,153 |
Accumulated benefit obligation | 1,057 | 1,127 |
Fair value of plan assets | 767 | 821 |
2018 expected employer contributions: | ||
To plan trusts | 50 | |
Expected benefit payments: | ||
2,018 | 72 | |
2,019 | 63 | |
2,020 | 63 | |
2,021 | 67 | |
2,022 | 114 | |
2023 - 2027 | 376 | |
Defined Benefit Plans | Non-U.S. Defined Benefit Plans | ||
Projected benefit obligation in excess of plan assets | ||
Projected benefit obligation | 1,790 | 1,213 |
Fair value of plan assets | 1,375 | 815 |
Accumulated benefit obligation in excess of plan assets | ||
Projected benefit obligation | 986 | 1,026 |
Accumulated benefit obligation | 919 | 957 |
Fair value of plan assets | 608 | $ 638 |
2018 expected employer contributions: | ||
To plan trusts | 38 | |
Expected benefit payments: | ||
2,018 | 69 | |
2,019 | 69 | |
2,020 | 73 | |
2,021 | 75 | |
2,022 | 80 | |
2023 - 2027 | 428 | |
Other Postretirement Benefit Plans | United States | ||
2018 expected employer contributions: | ||
To plan trusts | 6 | |
Expected benefit payments: | ||
2,018 | 6 | |
2,019 | 6 | |
2,020 | 6 | |
2,021 | 6 | |
2,022 | 6 | |
2023 - 2027 | $ 30 |
EMPLOYEE BENEFIT PLANS - FAIR V
EMPLOYEE BENEFIT PLANS - FAIR VALUE OF PLAN ASSETS (Details) - Defined Benefit Plans - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | $ 2,700 | $ 2,700 | $ 2,500 | $ 2,700 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 2,700 | |||||
Fair value of plan assets at end of year | $ 2,500 | 2,700 | ||||
Minimum | ||||||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Expected long term rate of return on the pension assets (as a percent) | 5.68% | |||||
Maximum | ||||||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Expected long term rate of return on the pension assets (as a percent) | 7.55% | |||||
United States | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | $ 821 | 721 | $ 721 | $ 767 | $ 821 | |
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 821 | 721 | ||||
Fair value of plan assets at end of year | $ 767 | $ 821 | $ 721 | |||
Expected long term rate of return on the pension assets (as a percent) | 7.55% | 7.55% | 7.54% | |||
Allocation (as a percent) | 100.00% | 100.00% | ||||
United States | Forecast | ||||||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Target allocation (as a percent) | 100.00% | |||||
United States | Quoted prices in active markets for identical assets (Level 1) | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | $ 557 | $ 557 | $ 515 | $ 557 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 557 | |||||
Fair value of plan assets at end of year | 515 | 557 | ||||
United States | Significant other observable inputs (Level 2) | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 194 | 194 | 178 | 194 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 194 | |||||
Fair value of plan assets at end of year | 178 | 194 | ||||
United States | Significant unobservable inputs (Level 3) | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 70 | 70 | 74 | 70 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 70 | |||||
Fair value of plan assets at end of year | 74 | 70 | ||||
United States | Recurring basis | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 821 | 821 | 767 | 821 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 821 | |||||
Fair value of plan assets at end of year | 767 | 821 | ||||
Non-U.S. Defined Benefit Plans | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 1,883 | 1,639 | $ 1,639 | $ 1,751 | $ 1,883 | |
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 1,883 | 1,639 | ||||
Fair value of plan assets at end of year | $ 1,751 | $ 1,883 | $ 1,639 | |||
Expected long term rate of return on the pension assets (as a percent) | 5.88% | 5.68% | 5.91% | |||
Allocation (as a percent) | 100.00% | 100.00% | ||||
Non-U.S. Defined Benefit Plans | Forecast | ||||||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Target allocation (as a percent) | 100.00% | |||||
Non-U.S. Defined Benefit Plans | Quoted prices in active markets for identical assets (Level 1) | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | $ 844 | $ 844 | $ 786 | $ 844 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 844 | |||||
Fair value of plan assets at end of year | 786 | 844 | ||||
Non-U.S. Defined Benefit Plans | Significant other observable inputs (Level 2) | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 984 | 984 | 909 | 984 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 984 | |||||
Fair value of plan assets at end of year | 909 | 984 | ||||
Non-U.S. Defined Benefit Plans | Significant unobservable inputs (Level 3) | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 55 | 55 | 56 | 55 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 55 | |||||
Fair value of plan assets at end of year | 56 | 55 | ||||
Non-U.S. Defined Benefit Plans | Recurring basis | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 1,883 | 1,883 | $ 1,751 | $ 1,883 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 1,883 | |||||
Fair value of plan assets at end of year | 1,751 | 1,883 | ||||
Investments in equity securities | United States | ||||||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Allocation (as a percent) | 50.00% | 54.00% | ||||
Investments in equity securities | United States | Forecast | ||||||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Target allocation (as a percent) | 53.00% | |||||
Investments in equity securities | United States | Quoted prices in active markets for identical assets (Level 1) | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 318 | 318 | $ 275 | $ 318 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 318 | |||||
Fair value of plan assets at end of year | 275 | 318 | ||||
Investments in equity securities | United States | Significant other observable inputs (Level 2) | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 122 | 122 | 107 | 122 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 122 | |||||
Fair value of plan assets at end of year | 107 | 122 | ||||
Investments in equity securities | United States | Recurring basis | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 440 | 440 | $ 382 | $ 440 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 440 | |||||
Fair value of plan assets at end of year | 382 | 440 | ||||
Investments in equity securities | Non-U.S. Defined Benefit Plans | ||||||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Allocation (as a percent) | 27.00% | 32.00% | ||||
Investments in equity securities | Non-U.S. Defined Benefit Plans | Forecast | ||||||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Target allocation (as a percent) | 37.00% | |||||
Investments in equity securities | Non-U.S. Defined Benefit Plans | Quoted prices in active markets for identical assets (Level 1) | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 230 | 230 | $ 161 | $ 230 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 230 | |||||
Fair value of plan assets at end of year | 161 | 230 | ||||
Investments in equity securities | Non-U.S. Defined Benefit Plans | Significant other observable inputs (Level 2) | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 372 | 372 | 310 | 372 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 372 | |||||
Fair value of plan assets at end of year | 310 | 372 | ||||
Investments in equity securities | Non-U.S. Defined Benefit Plans | Recurring basis | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 602 | 602 | $ 471 | $ 602 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 602 | |||||
Fair value of plan assets at end of year | 471 | 602 | ||||
Fixed income | United States | ||||||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Allocation (as a percent) | 41.00% | 38.00% | ||||
Fixed income | United States | Forecast | ||||||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Target allocation (as a percent) | 39.00% | |||||
Fixed income | United States | Quoted prices in active markets for identical assets (Level 1) | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 239 | 239 | $ 240 | $ 239 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 239 | |||||
Fair value of plan assets at end of year | 240 | 239 | ||||
Fixed income | United States | Significant other observable inputs (Level 2) | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 72 | 72 | 71 | 72 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 72 | |||||
Fair value of plan assets at end of year | 71 | 72 | ||||
Fixed income | United States | Recurring basis | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 311 | 311 | $ 311 | $ 311 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 311 | |||||
Fair value of plan assets at end of year | 311 | 311 | ||||
Fixed income | Non-U.S. Defined Benefit Plans | ||||||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Allocation (as a percent) | 43.00% | 39.00% | ||||
Fixed income | Non-U.S. Defined Benefit Plans | Forecast | ||||||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Target allocation (as a percent) | 41.00% | |||||
Fixed income | Non-U.S. Defined Benefit Plans | Quoted prices in active markets for identical assets (Level 1) | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 477 | 477 | $ 496 | $ 477 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 477 | |||||
Fair value of plan assets at end of year | 496 | 477 | ||||
Fixed income | Non-U.S. Defined Benefit Plans | Significant other observable inputs (Level 2) | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 262 | 262 | 251 | 262 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 262 | |||||
Fair value of plan assets at end of year | 251 | 262 | ||||
Fixed income | Non-U.S. Defined Benefit Plans | Recurring basis | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 739 | 739 | 747 | 739 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 739 | |||||
Fair value of plan assets at end of year | 747 | 739 | ||||
Real Estate/Other | Significant unobservable inputs (Level 3) | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 125 | 106 | $ 106 | $ 130 | $ 125 | |
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 125 | 106 | ||||
Return on pension plan assets | 5 | 14 | ||||
Purchases, sales and settlements | 5 | |||||
Fair value of plan assets at end of year | 130 | 125 | $ 106 | |||
Real Estate/Other | United States | ||||||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Allocation (as a percent) | 9.00% | 8.00% | ||||
Real Estate/Other | United States | Forecast | ||||||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Target allocation (as a percent) | 8.00% | |||||
Real Estate/Other | United States | Significant unobservable inputs (Level 3) | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 70 | 70 | $ 74 | $ 70 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 70 | |||||
Fair value of plan assets at end of year | 74 | 70 | ||||
Real Estate/Other | United States | Recurring basis | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 70 | 70 | $ 74 | $ 70 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 70 | |||||
Fair value of plan assets at end of year | 74 | 70 | ||||
Real Estate/Other | Non-U.S. Defined Benefit Plans | ||||||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Allocation (as a percent) | 28.00% | 27.00% | ||||
Real Estate/Other | Non-U.S. Defined Benefit Plans | Forecast | ||||||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Target allocation (as a percent) | 13.00% | |||||
Real Estate/Other | Non-U.S. Defined Benefit Plans | Quoted prices in active markets for identical assets (Level 1) | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 104 | 104 | $ 93 | $ 104 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 104 | |||||
Fair value of plan assets at end of year | 93 | 104 | ||||
Real Estate/Other | Non-U.S. Defined Benefit Plans | Significant other observable inputs (Level 2) | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 349 | 349 | 348 | 349 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 349 | |||||
Fair value of plan assets at end of year | 348 | 349 | ||||
Real Estate/Other | Non-U.S. Defined Benefit Plans | Significant unobservable inputs (Level 3) | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 55 | 55 | 56 | 55 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 55 | |||||
Fair value of plan assets at end of year | 56 | 55 | ||||
Real Estate/Other | Non-U.S. Defined Benefit Plans | Recurring basis | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 508 | 508 | $ 497 | $ 508 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 508 | |||||
Fair value of plan assets at end of year | 497 | 508 | ||||
Cash | Non-U.S. Defined Benefit Plans | ||||||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Allocation (as a percent) | 2.00% | 2.00% | ||||
Cash | Non-U.S. Defined Benefit Plans | Forecast | ||||||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Target allocation (as a percent) | 9.00% | |||||
Cash | Non-U.S. Defined Benefit Plans | Quoted prices in active markets for identical assets (Level 1) | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 33 | 33 | $ 36 | $ 33 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 33 | |||||
Fair value of plan assets at end of year | 36 | 33 | ||||
Cash | Non-U.S. Defined Benefit Plans | Significant other observable inputs (Level 2) | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 1 | 1 | 1 | |||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 1 | |||||
Fair value of plan assets at end of year | 1 | |||||
Cash | Non-U.S. Defined Benefit Plans | Recurring basis | ||||||
EMPLOYEE BENEFIT PLANS | ||||||
Fair value of plan assets | 34 | 34 | $ 36 | $ 34 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||||||
Fair value of plan assets at beginning of year | 34 | |||||
Fair value of plan assets at end of year | $ 36 | $ 34 |
EMPLOYEE BENEFIT PLANS - DEFINE
EMPLOYEE BENEFIT PLANS - DEFINED CONTRIBUTION PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SUPPLEMENTAL SALARY DEFERRAL PLAN AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN | |||
Maximum percentage of salary which participant can defer under Huntsman supplemental deferral plan | 75.00% | ||
Carrying amount of assets included in other noncurrent assets | $ 32 | $ 33 | |
Deferred compensation expense | 1 | 1 | $ 1 |
United States | |||
DEFINED CONTRIBUTION PLANS | |||
Total defined contribution expense | 21 | 22 | 20 |
Non-U.S. Defined Benefit Plans | |||
DEFINED CONTRIBUTION PLANS | |||
Total defined contribution expense | $ 4 | $ 5 | $ 4 |
Money purchase pension plan | United States | |||
DEFINED CONTRIBUTION PLANS | |||
Non-discretionary employer contributions (as a percent) | 8.00% | ||
Salary deferral plan | United States | Maximum | |||
DEFINED CONTRIBUTION PLANS | |||
Employer contribution (as a percent of compensation) | 4.00% | ||
Salary deferral plan for new hires | United States | Maximum | |||
DEFINED CONTRIBUTION PLANS | |||
Non-discretionary employer contributions (as a percent) | 6.00% | ||
Employer contribution (as a percent of compensation) | 4.00% | ||
Huntsman UK Pension Plan | Non-U.S. Defined Benefit Plans | |||
DEFINED CONTRIBUTION PLANS | |||
Transition period for contributions | 5 years | ||
Employer contribution (as a percent of compensation) | 15.00% | ||
Huntsman UK Pension Plan New Hires | Non-U.S. Defined Benefit Plans | Maximum | |||
DEFINED CONTRIBUTION PLANS | |||
Employer contribution (as a percent of compensation) | 12.00% |
EMPLOYEE BENEFIT PLANS - STOCK
EMPLOYEE BENEFIT PLANS - STOCK BASED INCENTIVE PLAN (Details) - shares shares in Millions | Dec. 31, 2018 | May 05, 2016 |
STOCK-BASED COMPENSATION PLAN | ||
Authorized number of shares to be granted under the Stock Incentive Plan | 8.2 | |
Shares available for grant | 9.5 | |
the "Prior Plan" | ||
STOCK-BASED COMPENSATION PLAN | ||
Shares available for grant | 0 |
INCOME TAXES - COMPONENTS OF IN
INCOME TAXES - COMPONENTS OF INCOME TAX EXPENSE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
U.S. | |||
Current | $ 57 | $ 23 | $ 50 |
Deferred | 19 | (95) | (15) |
Non-U.S. | |||
Current | 155 | 94 | 55 |
Deferred | (134) | 42 | 19 |
Total income tax expense | 97 | 64 | 109 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
U.S. | |||
Current | 57 | 16 | 50 |
Deferred | 15 | (92) | (16) |
Non-U.S. | |||
Current | 155 | 94 | 55 |
Deferred | (134) | 43 | 19 |
Total income tax expense | $ 93 | $ 61 | $ 108 |
INCOME TAXES - RECONCILIATION T
INCOME TAXES - RECONCILIATION TABLE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation between the U.S. federal income taxes at the U.S. statutory rate to the provision (benefit) for income taxes | |||
Income from continuing operations before income taxes | $ 942 | $ 647 | $ 474 |
Expected tax expense at U.S. statutory rate of 35% | 198 | 227 | 166 |
Change resulting from: | |||
State tax expense net of federal benefit | 5 | (2) | (1) |
Non-U.S. tax rate differentials | 29 | (64) | (32) |
Non-taxable portion of gain on sale of European surfactants business | (23) | ||
U.S. Tax Reform Act impact | 32 | (52) | |
Currency exchange gains/losses (net) | (10) | 15 | (5) |
Non-U.S. income subject to U.S. tax not offset by U.S. foreign tax credits | 16 | ||
Tax authority audits and dispute resolutions | 5 | 9 | 2 |
Share-based compensation excess tax benefits | (14) | (10) | |
Change in valuation allowance | (185) | (72) | (38) |
Fair value adjustments to Venator investment | 18 | ||
Impact of equity method investments | (14) | (3) | (1) |
Other non-U.S. tax effects, including nondeductible expenses, tax effect of rate changes, transfer pricing adjustments and various withholding taxes | 17 | 7 | 31 |
Other U.S. tax effects, including nondeductible expenses and other credits | 9 | 10 | |
Total income tax expense | $ 97 | $ 64 | $ 109 |
U.S. income tax statutory rate (as a percent) | 21.00% | 35.00% | 35.00% |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Reconciliation between the U.S. federal income taxes at the U.S. statutory rate to the provision (benefit) for income taxes | |||
Income from continuing operations before income taxes | $ 924 | $ 640 | $ 475 |
Expected tax expense at U.S. statutory rate of 35% | 194 | 224 | 165 |
Change resulting from: | |||
State tax expense net of federal benefit | 5 | (2) | (1) |
Non-U.S. tax rate differentials | 29 | (64) | (32) |
Non-taxable portion of gain on sale of European surfactants business | (23) | ||
U.S. Tax Reform Act impact | 32 | (53) | |
Currency exchange gains/losses (net) | (10) | 15 | (5) |
Non-U.S. income subject to U.S. tax not offset by U.S. foreign tax credits | 16 | ||
Tax authority audits and dispute resolutions | 5 | 9 | 2 |
Share-based compensation excess tax benefits | (14) | (10) | |
Change in valuation allowance | (185) | (72) | (39) |
Fair value adjustments to Venator investment | 18 | ||
Impact of equity method investments | (14) | (3) | (1) |
Other non-U.S. tax effects, including nondeductible expenses, tax effect of rate changes, transfer pricing adjustments and various withholding taxes | 17 | 8 | 33 |
Other U.S. tax effects, including nondeductible expenses and other credits | 9 | 9 | |
Total income tax expense | $ 93 | $ 61 | $ 108 |
U.S. income tax statutory rate (as a percent) | 21.00% | 35.00% | 35.00% |
INCOME TAXES - RECONCILIATION N
INCOME TAXES - RECONCILIATION NARRATIVE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax | |||
Non-U.S. tax rate net provision (benefit) | $ 29 | $ (64) | $ (32) |
Tax (expense) benefit from currency exchange gains before valuation allowances and contingencies | 10 | (15) | 5 |
China, Germany, India, and Luxembourg | |||
Income Tax | |||
Non-U.S. tax rate net provision (benefit) | $ 29 | ||
Netherlands, China, U. K., Switzerland and Luxembourg | |||
Income Tax | |||
Non-U.S. tax rate net provision (benefit) | $ (64) | ||
Netherlands, China and Switzerland | |||
Income Tax | |||
Non-U.S. tax rate net provision (benefit) | $ (32) |
INCOME TAXES - U.S. TAX REFORM
INCOME TAXES - U.S. TAX REFORM ACT (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 24 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | |
U.S. Tax Reform Act | ||||
Net tax benefits due to enactment of U.S. Tax Reform Act | $ 20 | |||
Net tax benefits from due to remeasurement of deferred tax assets and liabilities | 135 | |||
Income tax benefit from remeasurement of deferred assets and liabilities | $ 52 | $ 137 | ||
Final tax expense from remeasurement of deferred assets and liabilities | $ 2 | |||
Net tax expenses due to transition tax on deemed repatriation of deferred foreign income | $ 115 | |||
Provisional tax expense due to transition tax on deemed repatriation of deferred foreign income | $ 85 | |||
Final federal tax expense on deemed repatriation of deferred foreign income | 29 | |||
Final state tax expense on deemed repatriation of deferred foreign income | $ 1 | |||
GILTI maximum blended tax rate | 13.125% | |||
Income tax expense from GILTI expense allocations | $ 16 |
INCOME TAXES - COMPONENTS OF _2
INCOME TAXES - COMPONENTS OF INCOME (LOSS) FROM CONTINUING OPERATIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Component of income (loss) from continuing operations before income taxes | |||
U.S. | $ 165 | $ (39) | $ 91 |
Non-U.S. | 777 | 686 | 383 |
Income from continuing operations before income taxes | 942 | 647 | 474 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Component of income (loss) from continuing operations before income taxes | |||
U.S. | 147 | (46) | 92 |
Non-U.S. | 777 | 686 | 383 |
Income from continuing operations before income taxes | $ 924 | $ 640 | $ 475 |
INCOME TAXES - DEFERRED TAX ASS
INCOME TAXES - DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred income tax assets: | ||
Net operating loss carryforwards | $ 359 | $ 411 |
Pension and other employee compensation | 198 | 205 |
Property, plant and equipment | 20 | 29 |
Intangible assets | 79 | 88 |
Unrealized currency loss | 8 | |
Other, net | 45 | 46 |
Total | 701 | 787 |
Deferred income tax liabilities: | ||
Property, plant and equipment | (363) | (351) |
Pension and other employee compensation | (3) | |
Intangible assets | (34) | (7) |
Unrealized currency loss | (37) | (27) |
Other, net | (12) | (31) |
Total | (446) | (419) |
Net deferred tax asset before valuation allowance | 255 | 368 |
Valuation allowance-net operating losses and other | (227) | (424) |
Net deferred tax asset | 28 | |
Net deferred tax liability | (56) | |
Non-current deferred tax asset | 324 | 208 |
Non-current deferred tax liability | (296) | (264) |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||
Deferred income tax assets: | ||
Net operating loss carryforwards | 359 | 411 |
Pension and other employee compensation | 198 | 205 |
Property, plant and equipment | 20 | 29 |
Intangible assets | 79 | 88 |
Unrealized currency loss | 8 | |
Other, net | 45 | 46 |
Total | 701 | 787 |
Deferred income tax liabilities: | ||
Property, plant and equipment | (363) | (351) |
Pension and other employee compensation | (3) | |
Intangible assets | (34) | (7) |
Unrealized currency loss | (37) | (27) |
Other, net | (10) | (32) |
Total | (444) | (420) |
Net deferred tax asset before valuation allowance | 257 | 367 |
Valuation allowance-net operating losses and other | (227) | (424) |
Net deferred tax asset | 30 | |
Net deferred tax liability | (57) | |
Non-current deferred tax asset | 324 | 208 |
Non-current deferred tax liability | $ (294) | $ (265) |
INCOME TAXES - TAX CREDITS AND
INCOME TAXES - TAX CREDITS AND OPERATING LOSS CARRYFORWARDS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax | ||||||
Deferred Tax Assets, Operating Loss Carryforwards | $ 359 | $ 411 | ||||
Valuation allowance on net deferred tax assets | 227 | 424 | $ 496 | $ 526 | ||
Releases of valuation allowances | 132 | 22 | 19 | |||
Establishments of valuation allowances in various jurisdictions | 12 | |||||
Luxembourg | ||||||
Income Tax | ||||||
Operating loss carryforwards | 670 | |||||
Operating loss carryforwards, valuation allowance | 102 | |||||
Deferred Tax Assets, Operating Loss Carryforwards | $ 174 | |||||
Releases of valuation allowances | $ 24 | 15 | ||||
Italy | ||||||
Income Tax | ||||||
Releases of valuation allowances | $ 7 | |||||
Establishments of valuation allowances in various jurisdictions | 9 | |||||
China | ||||||
Income Tax | ||||||
Establishments of valuation allowances in various jurisdictions | 3 | |||||
Spain | ||||||
Income Tax | ||||||
Releases of valuation allowances | 12 | |||||
Netherlands | ||||||
Income Tax | ||||||
Releases of valuation allowances | $ 7 | |||||
Switzerland | ||||||
Income Tax | ||||||
Releases of valuation allowances | $ 80 | |||||
Carryover period | 7 years | |||||
UK | ||||||
Income Tax | ||||||
Releases of valuation allowances | $ 15 | |||||
Non-US jurisdictions | ||||||
Income Tax | ||||||
Operating loss carryforwards | $ 1,449 | |||||
Operating loss carryforwards, subject to expiration | 330 | |||||
Portion of operating loss carryforwards that are subject to expiration, subject to valuation allowance | 259 | |||||
Releases of valuation allowances | 13 | |||||
Non-US jurisdictions | Expiration in 2018 | ||||||
Income Tax | ||||||
Portion of operating loss carryforwards that are subject to expiration, subject to valuation allowance | 91 | |||||
Non-US jurisdictions | Expiration in 2019 | ||||||
Income Tax | ||||||
Operating loss carryforwards, subject to expiration | 156 | |||||
Portion of operating loss carryforwards that are subject to expiration, subject to valuation allowance | $ 138 |
INCOME TAXES - SUMMARY OF CHANG
INCOME TAXES - SUMMARY OF CHANGES IN VALUATION ALLOWANCE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of changes in the valuation allowance | |||
Valuation allowance at the beginning of the period | $ 424 | $ 496 | $ 526 |
Valuation allowance at the end of the period | 227 | 424 | 496 |
Net (increase) decrease | 197 | 72 | 30 |
Foreign currency movements | 3 | 11 | (11) |
(Decrease) increase to deferred tax assets with no impact on operating tax expense, including an offsetting (decrease) increase to valuation allowances | (15) | (11) | 19 |
Change in valuation allowance per rate reconciliation | 185 | 72 | 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 | 53 | 50 | 31 |
Releases of valuation allowances in various jurisdictions | 132 | 22 | 19 |
Establishments of valuation allowances in various jurisdictions | (12) | ||
Change in valuation allowance per rate reconciliation | 185 | 72 | 38 |
Expense (benefit) as a result of pre-tax income and losses in jurisdictions with valuation allowances | 0 | 0 | 0 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Summary of changes in the valuation allowance | |||
Valuation allowance at the beginning of the period | 424 | 499 | 530 |
Valuation allowance at the end of the period | 227 | 424 | 499 |
Net (increase) decrease | 197 | 75 | 31 |
Foreign currency movements | 3 | 11 | (11) |
(Decrease) increase to deferred tax assets with no impact on operating tax expense, including an offsetting (decrease) increase to valuation allowances | (15) | (14) | 19 |
Change in valuation allowance per rate reconciliation | 185 | 72 | 39 |
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 | 53 | 49 | 32 |
Releases of valuation allowances in various jurisdictions | 132 | 23 | 19 |
Establishments of valuation allowances in various jurisdictions | (12) | ||
Change in valuation allowance per rate reconciliation | 185 | 72 | 39 |
Expense (benefit) as a result of pre-tax income and losses in jurisdictions with valuation allowances | $ 0 | $ 0 | $ 0 |
INCOME TAXES - UNRECOGNIZED TAX
INCOME TAXES - UNRECOGNIZED TAX BENEFITS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of unrecognized tax benefits | |||
Unrecognized tax benefits, balance at the beginning of the period | $ 23 | $ 17 | |
Gross increases and decreases-tax positions taken during the prior period | 1 | 3 | |
Gross increases and decreases-tax positions taken during the current period | 3 | 4 | |
Reductions resulting from the lapse of statutes of limitation | (2) | ||
Foreign currency movements | (1) | 1 | |
Unrecognized tax benefits, balance at the end of the period | 26 | 23 | $ 17 |
Unrecognized tax benefits which, if recognized, would affect the effective tax rate | 23 | 19 | |
Net increase (decrease) in unrecognized tax benefits with a corresponding income tax expense | 5 | 9 | 2 |
Interest and penalties related to unrecognized tax benefits included in tax expense | |||
Interest expense included in tax expense | $ 1 | ||
Interest and penalties accrued related to unrecognized tax benefits | |||
Accrued liability for interest | $ 3 | $ 3 | |
Number of months from the reporting date during which unrecognized tax benefit would result in change in income tax | 12 months | ||
Minimum | |||
Interest and penalties accrued related to unrecognized tax benefits | |||
Decrease in the unrecognized tax benefits reasonably possible, low end of range | $ 0 | ||
Maximum | |||
Interest and penalties accrued related to unrecognized tax benefits | |||
Decrease in the unrecognized tax benefits reasonably possible, low end of range | $ 7 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - PURCHASE COMMITMENTS AND OPERATING LEASES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
COMMITMENTS AND CONTINGENCIES | |||
Minimum contracts period which require minimum volume purchases | 1 year | ||
Minimum payments under purchase commitments | $ 0 | $ 0 | $ 1 |
Purchase commitments: | |||
2,019 | 1,424 | ||
2,020 | 855 | ||
2,021 | 666 | ||
2,022 | 629 | ||
2,023 | 414 | ||
Thereafter | 1,794 | ||
Total | 5,782 | ||
Operating Leases | |||
Rent expense | 76 | 80 | 81 |
Sublease rentals | 2 | $ 2 | $ 2 |
Future minimum lease payments | |||
2,019 | 59 | ||
2,020 | 53 | ||
2,021 | 52 | ||
2,022 | 49 | ||
2,023 | 45 | ||
Thereafter | 234 | ||
Total | $ 492 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - LEGAL MATTERS (Details) $ in Millions | Dec. 31, 2018USD ($) |
Indemnification Matters | |
LEGAL MATTERS | |
Accrued liability relating to the cases | $ 0 |
ENVIRONMENTAL, HEALTH AND SAF_2
ENVIRONMENTAL, HEALTH AND SAFETY MATTERS (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
ENVIRONMENTAL, HEALTH AND SAFETY MATTERS | |||
Capital expenditures for EHS matters | $ 44 | $ 47 | $ 55 |
Accrued environmental liabilities | 7 | 21 | |
Environmental liabilities, classified as accrued liabilities | 2 | 6 | |
Environmental liabilities, classified as other noncurrent liabilities | $ 5 | $ 15 | |
Maximum period for payment of remediation liabilities | 30 years | ||
Number of former facilities or third-party sites with potential claims against the entity for cleanup liabilities | item | 6 |
HUNTSMAN CORPORATION STOCKHOL_3
HUNTSMAN CORPORATION STOCKHOLDERS EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 07, 2018 | Jan. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 03, 2018 | Jan. 31, 2016 | Oct. 27, 2015 | Sep. 29, 2015 |
SHARE REPURCHASE PROGRAM | |||||||||||||||||
Number of shares repurchased | 537,018 | 10,405,457 | |||||||||||||||
Payments for stock repurchased, excluding commissions | $ 11 | $ 276 | |||||||||||||||
DIVIDENDS ON COMMON STOCK | |||||||||||||||||
Cash dividends paid | $ 39 | $ 39 | $ 39 | $ 39 | $ 30 | $ 30 | $ 30 | $ 30 | $ 156 | $ 120 | $ 120 | ||||||
Cash dividends paid (in dollars per share) | $ 0.1625 | $ 0.1625 | $ 0.1625 | $ 0.1625 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | |||||||||
Cash declared (in dollars per share) | $ 0.1625 | $ 0.65 | $ 0.50 | $ 0.50 | |||||||||||||
Citibank, N.A | |||||||||||||||||
SHARE REPURCHASE PROGRAM | |||||||||||||||||
Value authorized to be repurchased | $ 100 | ||||||||||||||||
Shares authorized for repurchase | 1,500,000 | 7,100,000 | |||||||||||||||
Stock repurchase price (in dollars per share) | $ 11.94 | ||||||||||||||||
Share Repurchase Program 2015 | |||||||||||||||||
SHARE REPURCHASE PROGRAM | |||||||||||||||||
Remaining amount authorized for repurchase | $ 50 | ||||||||||||||||
Share Repurchase Program 2015 | Maximum | |||||||||||||||||
SHARE REPURCHASE PROGRAM | |||||||||||||||||
Value authorized to be repurchased | $ 150 | ||||||||||||||||
Share Repurchase Program 2018 | Maximum | |||||||||||||||||
SHARE REPURCHASE PROGRAM | |||||||||||||||||
Value authorized to be repurchased | $ 950 |
STOCK-BASED COMPENSATION PLAN -
STOCK-BASED COMPENSATION PLAN - COMPENSATION COST AND STOCK OPTIONS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 05, 2016 | |
STOCK-BASED COMPENSATION PLAN | ||||
Authorized number of shares to be granted under the Stock Incentive Plan | 8,200 | |||
Shares available for grant | 9,500 | |||
Compensation cost | $ 27 | $ 36 | $ 32 | |
Total income tax benefit recognized in the statements of operations for stock-based compensation arrangements | $ 18 | $ 18 | $ 7 | |
the "Prior Plan" | ||||
STOCK-BASED COMPENSATION PLAN | ||||
Shares available for grant | 0 | |||
Stock options | ||||
Weighted average of the assumptions utilized for stock options granted | ||||
Dividend yield (as a percent) | 1.60% | 2.40% | 5.60% | |
Expected volatility (as a percent) | 55.20% | 56.90% | 57.90% | |
Risk-free interest rate (as a percent) | 2.60% | 2.00% | 1.40% | |
Expected life of stock options granted during the period | 5 years 10 months 24 days | 5 years 10 months 24 days | 5 years 10 months 24 days | |
Shares | ||||
Outstanding at the beginning of the period (in shares) | 7,988 | |||
Granted (in shares) | 509 | |||
Exercised (in shares) | (3,873) | |||
Forfeited (in shares) | (79) | |||
Outstanding at the end of the period (in shares) | 4,545 | 7,988 | ||
Exercisable at the end of the period (in shares) | 2,816 | |||
Weighted Average Exercise Price | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 13.99 | |||
Granted (in dollars per share) | 32.51 | |||
Exercised (in dollars per share) | 11.85 | |||
Forfeited (in dollars per share) | 18.70 | |||
Outstanding at the end of the period (in dollars per share) | 17.81 | $ 13.99 | ||
Exercisable at the end of the period (in dollars per share) | $ 17.02 | |||
Outstanding, Weighted Average Remaining Contractual Term (years) | 6 years 6 months | |||
Exercisable, Weighted Average Remaining Contractual Term (years) | 5 years 7 months 6 days | |||
Outstanding, Aggregate Intrinsic Value (in dollars) | $ 18 | |||
Exercisable, Aggregate Intrinsic Value (in dollars) | $ 10 | |||
Weighted-average grant-date fair value of stock options granted (in dollars per share) | $ 15.20 | $ 9.26 | $ 3.15 | |
Total unrecognized compensation cost | $ 8 | |||
Weighted-average period over which cost is expected to be recognized (years) | 1 year 9 months 18 days | |||
Total intrinsic value of stock options exercised | $ 78 | $ 48 | $ 1 | |
Cash received from stock options exercised | 17 | 35 | 1 | |
Cash tax benefit from stock options exercised | $ 17 | 15 | 0 | |
Stock options | Maximum | ||||
STOCK-BASED COMPENSATION PLAN | ||||
Contractual term | 10 years | |||
Outstanding stock-based awards | ||||
STOCK-BASED COMPENSATION PLAN | ||||
Vesting period | 3 years | |||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||
STOCK-BASED COMPENSATION PLAN | ||||
Compensation cost | $ 26 | $ 35 | $ 31 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLAN - NONVESTED SHARES (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Additional information | |||
Value of share awards vested | $ 24 | $ 22 | $ 16 |
Nonvested shares | |||
Additional information | |||
Total unrecognized compensation cost | $ 19 | ||
Weighted-average period over which cost is expected to be recognized (years) | 1 year 8 months 12 days | ||
Performance Awards | |||
STOCK-BASED COMPENSATION PLAN | |||
Weighted-average expected volatility rate | 44.30% | 45.00% | 39.30% |
Weighted-average risk-free interest rate (as a percent) | 2.30% | 1.50% | 0.90% |
Performance Awards | Maximum | |||
Additional information | |||
Performance period | 3 years | ||
Equity Awards | |||
Shares | |||
Nonvested at the beginning of the period (in shares) | 2,457,000 | ||
Granted (in shares) | 435,000 | ||
Vested (in shares) | (840,000) | ||
Forfeited (in shares) | (129,000) | ||
Nonvested at the end of the period (in shares) | 1,923,000 | 2,457,000 | |
Weighted Average Grant-Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 14.93 | ||
Granted (in dollars per share) | 35.04 | ||
Vested (in dollars per share) | 15.67 | ||
Forfeited (in dollars per share) | 16.22 | ||
Nonvested at the end of the period (in dollars per share) | $ 19.08 | $ 14.93 | |
Liability Awards | |||
Shares | |||
Nonvested at the beginning of the period (in shares) | 696,000 | ||
Granted (in shares) | 169,000 | ||
Vested (in shares) | (337,000) | ||
Forfeited (in shares) | (24,000) | ||
Nonvested at the end of the period (in shares) | 504,000 | 696,000 | |
Weighted Average Grant-Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 14.69 | ||
Granted (in dollars per share) | 32.77 | ||
Vested (in dollars per share) | 14.70 | ||
Forfeited (in dollars per share) | 16.66 | ||
Nonvested at the end of the period (in dollars per share) | $ 20.66 | $ 14.69 | |
Restricted stock units | |||
Shares | |||
Vested (in shares) | (15,922) | ||
Additional information | |||
Units vested but not yet issued | 358,609 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disaggregation of revenue | |
Practical expedient - incremental cost | true |
Practical expedient - financing component | true |
Total revenues | $ 9,379 |
MDI Urethanes | |
Disaggregation of revenue | |
Total revenues | 4,525 |
MTBE | |
Disaggregation of revenue | |
Total revenues | 569 |
Differentiated | |
Disaggregation of revenue | |
Total revenues | 2,120 |
Upstream | |
Disaggregation of revenue | |
Total revenues | 235 |
Specialty | |
Disaggregation of revenue | |
Total revenues | 932 |
Non-specialty | |
Disaggregation of revenue | |
Total revenues | 184 |
Textile Chemicals and Dyes and Digital Inks | |
Disaggregation of revenue | |
Total revenues | 824 |
Eliminations of Product and Services | |
Disaggregation of revenue | |
Total revenues | (10) |
U.S. and Canada | |
Disaggregation of revenue | |
Total revenues | 3,389 |
Europe | |
Disaggregation of revenue | |
Total revenues | 2,264 |
Asia Pacific | |
Disaggregation of revenue | |
Total revenues | 2,431 |
Rest of world | |
Disaggregation of revenue | |
Total revenues | 1,295 |
Operating segments | Polyurethanes | |
Disaggregation of revenue | |
Total revenues | 5,094 |
Operating segments | Polyurethanes | MDI Urethanes | |
Disaggregation of revenue | |
Total revenues | 4,525 |
Operating segments | Polyurethanes | MTBE | |
Disaggregation of revenue | |
Total revenues | 569 |
Operating segments | Polyurethanes | U.S. and Canada | |
Disaggregation of revenue | |
Total revenues | 1,700 |
Operating segments | Polyurethanes | Europe | |
Disaggregation of revenue | |
Total revenues | 1,278 |
Operating segments | Polyurethanes | Asia Pacific | |
Disaggregation of revenue | |
Total revenues | 1,236 |
Operating segments | Polyurethanes | Rest of world | |
Disaggregation of revenue | |
Total revenues | 880 |
Operating segments | Performance Products | |
Disaggregation of revenue | |
Total revenues | 2,355 |
Operating segments | Performance Products | Differentiated | |
Disaggregation of revenue | |
Total revenues | 2,120 |
Operating segments | Performance Products | Upstream | |
Disaggregation of revenue | |
Total revenues | 235 |
Operating segments | Performance Products | U.S. and Canada | |
Disaggregation of revenue | |
Total revenues | 1,305 |
Operating segments | Performance Products | Europe | |
Disaggregation of revenue | |
Total revenues | 423 |
Operating segments | Performance Products | Asia Pacific | |
Disaggregation of revenue | |
Total revenues | 432 |
Operating segments | Performance Products | Rest of world | |
Disaggregation of revenue | |
Total revenues | 195 |
Operating segments | Advanced Materials | |
Disaggregation of revenue | |
Total revenues | 1,116 |
Operating segments | Advanced Materials | Specialty | |
Disaggregation of revenue | |
Total revenues | 932 |
Operating segments | Advanced Materials | Non-specialty | |
Disaggregation of revenue | |
Total revenues | 184 |
Operating segments | Advanced Materials | U.S. and Canada | |
Disaggregation of revenue | |
Total revenues | 285 |
Operating segments | Advanced Materials | Europe | |
Disaggregation of revenue | |
Total revenues | 445 |
Operating segments | Advanced Materials | Asia Pacific | |
Disaggregation of revenue | |
Total revenues | 301 |
Operating segments | Advanced Materials | Rest of world | |
Disaggregation of revenue | |
Total revenues | 85 |
Operating segments | Textile Effects | |
Disaggregation of revenue | |
Total revenues | 824 |
Operating segments | Textile Effects | Textile Chemicals and Dyes and Digital Inks | |
Disaggregation of revenue | |
Total revenues | 824 |
Operating segments | Textile Effects | U.S. and Canada | |
Disaggregation of revenue | |
Total revenues | 68 |
Operating segments | Textile Effects | Europe | |
Disaggregation of revenue | |
Total revenues | 135 |
Operating segments | Textile Effects | Asia Pacific | |
Disaggregation of revenue | |
Total revenues | 485 |
Operating segments | Textile Effects | Rest of world | |
Disaggregation of revenue | |
Total revenues | 136 |
Eliminations | |
Disaggregation of revenue | |
Total revenues | (10) |
Eliminations | Eliminations of Product and Services | |
Disaggregation of revenue | |
Total revenues | (10) |
Eliminations | U.S. and Canada | |
Disaggregation of revenue | |
Total revenues | 31 |
Eliminations | Europe | |
Disaggregation of revenue | |
Total revenues | (17) |
Eliminations | Asia Pacific | |
Disaggregation of revenue | |
Total revenues | (23) |
Eliminations | Rest of world | |
Disaggregation of revenue | |
Total revenues | $ (1) |
OTHER COMPREHENSIVE INCOME (L_3
OTHER COMPREHENSIVE INCOME (LOSS) - COMPONENTS AND CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS - HUNTSMAN CORPORATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Components of other comprehensive income | |||
Balance at the beginning of the period | $ 3,371 | $ 1,467 | $ 1,629 |
Balance at the end of the period | 2,749 | 3,371 | 1,467 |
Total | |||
Components of other comprehensive income | |||
Balance at the beginning of the period | (1,411) | (1,707) | |
Revised beginning balance | (1,421) | ||
Other comprehensive (loss) income before reclassifications, gross | (316) | 194 | |
Tax benefit (expense) | 18 | 46 | |
Amounts reclassified from accumulated other comprehensive loss, gross | 77 | 70 | |
Tax expense | (19) | (14) | |
Net current-period other comprehensive income (loss) | (240) | 296 | |
Deconsolidation of Venator | 360 | ||
Balance at the end of the period | (1,352) | (1,411) | (1,707) |
Foreign currency translation adjustment | |||
Components of other comprehensive income | |||
Balance at the beginning of the period | (249) | (459) | |
Revised beginning balance | (249) | ||
Other comprehensive (loss) income before reclassifications, gross | (186) | 175 | |
Tax benefit (expense) | (6) | 35 | |
Net current-period other comprehensive income (loss) | (192) | 210 | |
Deconsolidation of Venator | 70 | ||
Balance at the end of the period | (371) | (249) | (459) |
Foreign currency translation adjustment, tax | 71 | 65 | 100 |
Pension and other postretirement benefits adjustments | |||
Components of other comprehensive income | |||
Balance at the beginning of the period | (1,189) | (1,275) | |
Revised beginning balance | (1,189) | ||
Other comprehensive (loss) income before reclassifications, gross | (130) | 11 | |
Tax benefit (expense) | 27 | 9 | |
Amounts reclassified from accumulated other comprehensive loss, gross | 77 | 80 | 53 |
Tax expense | (13) | (14) | (15) |
Net current-period other comprehensive income (loss) | (39) | 86 | |
Deconsolidation of Venator | 285 | ||
Balance at the end of the period | (994) | (1,189) | (1,275) |
Pension and other postretirement benefits adjustments, tax | 135 | 172 | 177 |
Other comprehensive income of unconsolidated affiliates | |||
Components of other comprehensive income | |||
Balance at the beginning of the period | 3 | 4 | |
Revised beginning balance | 3 | ||
Other comprehensive (loss) income before reclassifications, gross | (1) | ||
Net current-period other comprehensive income (loss) | (1) | ||
Deconsolidation of Venator | 5 | ||
Balance at the end of the period | 8 | 3 | 4 |
Other, net | |||
Components of other comprehensive income | |||
Balance at the beginning of the period | 24 | 23 | |
Revised beginning balance | 14 | ||
Other comprehensive (loss) income before reclassifications, gross | 9 | ||
Tax benefit (expense) | (3) | 2 | |
Amounts reclassified from accumulated other comprehensive loss, gross | (10) | ||
Tax expense | (6) | ||
Net current-period other comprehensive income (loss) | (9) | 1 | |
Balance at the end of the period | 5 | 24 | 23 |
Amounts attributable to noncontrolling interests | |||
Components of other comprehensive income | |||
Balance at the beginning of the period | 143 | 36 | |
Revised beginning balance | 143 | ||
Other comprehensive (loss) income before reclassifications, gross | 47 | (22) | |
Net current-period other comprehensive income (loss) | 47 | (22) | |
Disposition of a portion of Venator | (5) | 129 | |
Deconsolidation of Venator | (149) | ||
Balance at the end of the period | 36 | 143 | 36 |
Accumulated other comprehensive (loss) income | |||
Components of other comprehensive income | |||
Balance at the beginning of the period | (1,268) | (1,671) | (1,288) |
Revised beginning balance | (1,278) | ||
Other comprehensive (loss) income before reclassifications, gross | (269) | 172 | |
Tax benefit (expense) | 18 | 46 | |
Amounts reclassified from accumulated other comprehensive loss, gross | 77 | 70 | |
Tax expense | (19) | (14) | |
Net current-period other comprehensive income (loss) | (193) | 274 | |
Disposition of a portion of Venator | (5) | 129 | |
Deconsolidation of Venator | 211 | ||
Balance at the end of the period | $ (1,316) | (1,268) | $ (1,671) |
ASU 2016-01 | Total | |||
Components of other comprehensive income | |||
Cumulative effect of changes in fair value of equity investments | (10) | ||
ASU 2016-01 | Other, net | |||
Components of other comprehensive income | |||
Cumulative effect of changes in fair value of equity investments | (10) | ||
ASU 2016-01 | Accumulated other comprehensive (loss) income | |||
Components of other comprehensive income | |||
Cumulative effect of changes in fair value of equity investments | $ (10) |
OTHER COMPREHENSIVE INCOME (L_4
OTHER COMPREHENSIVE INCOME (LOSS) - RECLASSIFICATION DETAILS - HUNTSMAN CORPORATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension and other postretirement benefits adjustments | |||
Reclassification from accumulated other comprehensive loss | |||
Total before tax | $ 77 | $ 80 | $ 53 |
Income tax benefit (expense) | (13) | (14) | (15) |
Net of tax | 64 | 66 | 38 |
Pension and other postretirement benefits adjustments | Discontinued Operations | |||
Reclassification from accumulated other comprehensive loss | |||
Total before tax | 16 | 19 | 14 |
Prior service credit | |||
Reclassification from accumulated other comprehensive loss | |||
Total before tax | (12) | (15) | (16) |
Settlement loss | |||
Reclassification from accumulated other comprehensive loss | |||
Total before tax | 2 | ||
Actuarial loss | |||
Reclassification from accumulated other comprehensive loss | |||
Total before tax | $ 87 | $ 95 | $ 69 |
OTHER COMPREHENSIVE INCOME (L_5
OTHER COMPREHENSIVE INCOME (LOSS) - COMPONENTS AND CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS - HUNTSMAN INTERNATIONAL (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Components of other comprehensive income | |||
Balance at the beginning of the period | $ 2,834 | $ 936 | $ 1,084 |
Balance at the end of the period | 2,488 | 2,834 | 936 |
Total | |||
Components of other comprehensive income | |||
Other comprehensive (loss) income before reclassifications, gross | (316) | 194 | |
Tax benefit | 18 | 46 | |
Amounts reclassified from accumulated other comprehensive loss, gross | 77 | 70 | |
Tax expense | (19) | (14) | |
Net current-period other comprehensive income (loss) | (240) | 296 | |
Deconsolidation of Venator | 360 | ||
Tax expense | (51) | ||
Total | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Components of other comprehensive income | |||
Balance at the beginning of the period | (1,406) | (1,727) | |
Revised beginning balance | (1,416) | ||
Other comprehensive (loss) income before reclassifications, gross | (318) | 194 | |
Tax benefit | 20 | 46 | |
Amounts reclassified from accumulated other comprehensive loss, gross | 80 | 76 | |
Contribution of other comprehensive income from Parent | 20 | ||
Tax expense | (19) | (15) | |
Net current-period other comprehensive income (loss) | (237) | 321 | |
Deconsolidation of Venator | 360 | ||
Tax expense | (51) | ||
Balance at the end of the period | (1,344) | (1,406) | (1,727) |
Foreign currency translation adjustment | |||
Components of other comprehensive income | |||
Other comprehensive (loss) income before reclassifications, gross | (186) | 175 | |
Tax benefit | (6) | 35 | |
Net current-period other comprehensive income (loss) | (192) | 210 | |
Deconsolidation of Venator | 70 | ||
Foreign currency translation adjustment, tax | 71 | 65 | 100 |
Foreign currency translation adjustment | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Components of other comprehensive income | |||
Balance at the beginning of the period | (252) | (462) | |
Revised beginning balance | (252) | ||
Other comprehensive (loss) income before reclassifications, gross | (188) | 175 | |
Tax benefit | (6) | 35 | |
Net current-period other comprehensive income (loss) | (194) | 210 | |
Deconsolidation of Venator | 70 | ||
Balance at the end of the period | (376) | (252) | (462) |
Foreign currency translation adjustment, tax | 57 | 51 | 86 |
Pension and other postretirement benefits adjustments | |||
Components of other comprehensive income | |||
Other comprehensive (loss) income before reclassifications, gross | (130) | 11 | |
Tax benefit | 27 | 9 | |
Amounts reclassified from accumulated other comprehensive loss, gross | 77 | 80 | 53 |
Tax expense | (13) | (14) | (15) |
Net current-period other comprehensive income (loss) | (39) | 86 | |
Deconsolidation of Venator | 285 | ||
Tax expense | (51) | ||
Pension and other postretirement benefits adjustments, tax | 135 | 172 | 177 |
Pension and other postretirement benefits adjustments | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Components of other comprehensive income | |||
Balance at the beginning of the period | (1,174) | (1,286) | |
Revised beginning balance | (1,174) | ||
Other comprehensive (loss) income before reclassifications, gross | (130) | 12 | |
Tax benefit | 27 | 9 | |
Amounts reclassified from accumulated other comprehensive loss, gross | 80 | 86 | 61 |
Contribution of other comprehensive income from Parent | 20 | ||
Tax expense | (14) | (15) | (16) |
Net current-period other comprehensive income (loss) | (37) | 112 | |
Deconsolidation of Venator | 285 | ||
Tax expense | (51) | ||
Balance at the end of the period | (977) | (1,174) | (1,286) |
Pension and other postretirement benefits adjustments, tax | 161 | 199 | 205 |
Other comprehensive income of unconsolidated affiliates | |||
Components of other comprehensive income | |||
Other comprehensive (loss) income before reclassifications, gross | (1) | ||
Net current-period other comprehensive income (loss) | (1) | ||
Deconsolidation of Venator | 5 | ||
Other comprehensive income of unconsolidated affiliates | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Components of other comprehensive income | |||
Balance at the beginning of the period | 3 | 4 | |
Revised beginning balance | 3 | ||
Other comprehensive (loss) income before reclassifications, gross | (1) | ||
Net current-period other comprehensive income (loss) | (1) | ||
Deconsolidation of Venator | 5 | ||
Balance at the end of the period | 8 | 3 | 4 |
Other, net | |||
Components of other comprehensive income | |||
Other comprehensive (loss) income before reclassifications, gross | 9 | ||
Tax benefit | (3) | 2 | |
Amounts reclassified from accumulated other comprehensive loss, gross | (10) | ||
Tax expense | (6) | ||
Net current-period other comprehensive income (loss) | (9) | 1 | |
Other, net | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Components of other comprehensive income | |||
Balance at the beginning of the period | 17 | 17 | |
Revised beginning balance | 7 | ||
Other comprehensive (loss) income before reclassifications, gross | 8 | ||
Tax benefit | (1) | 2 | |
Amounts reclassified from accumulated other comprehensive loss, gross | (10) | ||
Tax expense | (5) | ||
Net current-period other comprehensive income (loss) | (6) | ||
Balance at the end of the period | 1 | 17 | 17 |
Amounts attributable to noncontrolling interests | |||
Components of other comprehensive income | |||
Other comprehensive (loss) income before reclassifications, gross | 47 | (22) | |
Net current-period other comprehensive income (loss) | 47 | (22) | |
Disposition of a portion of Venator | (5) | 129 | |
Deconsolidation of Venator | (149) | ||
Amounts attributable to noncontrolling interests | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Components of other comprehensive income | |||
Balance at the beginning of the period | 143 | 36 | |
Revised beginning balance | 143 | ||
Other comprehensive (loss) income before reclassifications, gross | 47 | (22) | |
Net current-period other comprehensive income (loss) | 47 | (22) | |
Disposition of a portion of Venator | (5) | 129 | |
Deconsolidation of Venator | (149) | ||
Balance at the end of the period | 36 | 143 | 36 |
Accumulated other comprehensive (loss) income | |||
Components of other comprehensive income | |||
Other comprehensive (loss) income before reclassifications, gross | (269) | 172 | |
Tax benefit | 18 | 46 | |
Amounts reclassified from accumulated other comprehensive loss, gross | 77 | 70 | |
Tax expense | (19) | (14) | |
Net current-period other comprehensive income (loss) | (193) | 274 | |
Disposition of a portion of Venator | (5) | 129 | |
Deconsolidation of Venator | 211 | ||
Tax expense | (51) | ||
Accumulated other comprehensive (loss) income | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Components of other comprehensive income | |||
Balance at the beginning of the period | (1,263) | (1,691) | (1,316) |
Revised beginning balance | (1,273) | ||
Other comprehensive (loss) income before reclassifications, gross | (271) | 172 | |
Tax benefit | 20 | 46 | |
Amounts reclassified from accumulated other comprehensive loss, gross | 80 | 76 | |
Contribution of other comprehensive income from Parent | 20 | ||
Tax expense | (19) | (15) | |
Net current-period other comprehensive income (loss) | (190) | 299 | |
Disposition of a portion of Venator | (5) | 129 | |
Deconsolidation of Venator | 211 | ||
Tax expense | (51) | ||
Balance at the end of the period | $ (1,308) | (1,263) | $ (1,691) |
ASU 2016-01 | Total | |||
Components of other comprehensive income | |||
Cumulative effect of changes in fair value of equity investments | (10) | ||
ASU 2016-01 | Total | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Components of other comprehensive income | |||
Cumulative effect of changes in fair value of equity investments | (10) | ||
ASU 2016-01 | Other, net | |||
Components of other comprehensive income | |||
Cumulative effect of changes in fair value of equity investments | (10) | ||
ASU 2016-01 | Other, net | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Components of other comprehensive income | |||
Cumulative effect of changes in fair value of equity investments | (10) | ||
ASU 2016-01 | Accumulated other comprehensive (loss) income | |||
Components of other comprehensive income | |||
Cumulative effect of changes in fair value of equity investments | (10) | ||
ASU 2016-01 | Accumulated other comprehensive (loss) income | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Components of other comprehensive income | |||
Cumulative effect of changes in fair value of equity investments | $ (10) |
OTHER COMPREHENSIVE INCOME (L_6
OTHER COMPREHENSIVE INCOME (LOSS) - RECLASSIFICATION DETAILS - HUNTSMAN INTERNATIONAL (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension and other postretirement benefits adjustments | |||
Reclassification from accumulated other comprehensive loss | |||
Total before tax | $ 77 | $ 80 | $ 53 |
Income tax benefit (expense) | (13) | (14) | (15) |
Net of tax | 64 | 66 | 38 |
Pension and other postretirement benefits adjustments | Discontinued Operations | |||
Reclassification from accumulated other comprehensive loss | |||
Total before tax | 16 | 19 | 14 |
Pension and other postretirement benefits adjustments | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Reclassification from accumulated other comprehensive loss | |||
Total before tax | 80 | 86 | 61 |
Income tax benefit (expense) | (14) | (15) | (16) |
Net of tax | 66 | 71 | 45 |
Pension and other postretirement benefits adjustments | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Discontinued Operations | |||
Reclassification from accumulated other comprehensive loss | |||
Total before tax | 16 | 24 | 18 |
Prior service credit | |||
Reclassification from accumulated other comprehensive loss | |||
Total before tax | (12) | (15) | (16) |
Prior service credit | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Reclassification from accumulated other comprehensive loss | |||
Total before tax | (12) | (15) | (16) |
Actuarial loss | |||
Reclassification from accumulated other comprehensive loss | |||
Total before tax | 87 | 95 | 69 |
Actuarial loss | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Reclassification from accumulated other comprehensive loss | |||
Total before tax | 90 | $ 101 | $ 77 |
Settlement loss | |||
Reclassification from accumulated other comprehensive loss | |||
Total before tax | 2 | ||
Settlement loss | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Reclassification from accumulated other comprehensive loss | |||
Total before tax | $ 2 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
RELATED PARTY TRANSACTIONS | |||||||||||
Net Sales | $ 2,236 | $ 2,444 | $ 2,404 | $ 2,295 | $ 2,203 | $ 2,169 | $ 2,054 | $ 1,932 | $ 9,379 | $ 8,358 | $ 7,518 |
Net Sales | 9,379 | ||||||||||
Unconsolidated affiliates | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Net Sales | 159 | 150 | 131 | ||||||||
Inventory purchases | $ 417 | $ 280 | $ 243 |
OPERATING SEGMENT INFORMATION -
OPERATING SEGMENT INFORMATION - FINANCIAL INFORMATION BY SEGMENT (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
OPERATING SEGMENT INFORMATION | |||||||||||
Number of reportable segments | segment | 4 | ||||||||||
Total revenues | $ 2,236 | $ 2,444 | $ 2,404 | $ 2,295 | $ 2,203 | $ 2,169 | $ 2,054 | $ 1,932 | $ 9,379 | $ 8,358 | $ 7,518 |
Segment adjusted EBITDA | 1,469 | 1,259 | 997 | ||||||||
Reconciliation of adjusted EBITDA to net income: | |||||||||||
Interest (expense) income | (115) | (165) | (203) | ||||||||
Interest expense - discontinued operations | (36) | (19) | 1 | ||||||||
Income tax expense - continuing operations | (97) | (64) | (109) | ||||||||
Income tax benefit (expense)-discontinued operations | (34) | (67) | 24 | ||||||||
Depreciation and amortization - continuing operations | (343) | (319) | (318) | ||||||||
Depreciation and amortization - discontinued operations | (68) | (114) | |||||||||
Net income attributable to noncontrolling interests | 313 | 105 | 31 | ||||||||
Other adjustments: | |||||||||||
Business integration expenses | (5) | (19) | (12) | ||||||||
Purchase accounting inventory adjustments | (4) | ||||||||||
Merger costs | (2) | (28) | |||||||||
EBITDA from discontinued operations | (125) | 312 | 81 | ||||||||
Noncontrolling interest of discontinued operations | (232) | (49) | (11) | ||||||||
Fair value adjustments to Venator investment | (62) | ||||||||||
Loss on early extinguishment of debt | (3) | (54) | (3) | ||||||||
Certain legal settlements and related income (expenses) | (6) | 11 | (1) | ||||||||
Gain on sale of assets | 9 | 97 | |||||||||
Amortization of pension and postretirement actuarial losses | (71) | (73) | (55) | ||||||||
Plant incident remediation costs | (1) | (16) | |||||||||
U.S. Tax Reform Act impact on noncontrolling interest | 6 | ||||||||||
Restructuring, impairment and plant closing and transition credits (costs) | 4 | (20) | (48) | ||||||||
Net income | (315) | (8) | 623 | 350 | 287 | 179 | 183 | 92 | 650 | 741 | 357 |
Operating segments | Polyurethanes | |||||||||||
OPERATING SEGMENT INFORMATION | |||||||||||
Total revenues | 5,094 | 4,399 | 3,667 | ||||||||
Segment adjusted EBITDA | 946 | 850 | 569 | ||||||||
Reconciliation of adjusted EBITDA to net income: | |||||||||||
Depreciation and amortization - continuing operations | (129) | (116) | (114) | ||||||||
Operating segments | Performance Products | |||||||||||
OPERATING SEGMENT INFORMATION | |||||||||||
Total revenues | 2,355 | 2,109 | 2,126 | ||||||||
Segment adjusted EBITDA | 367 | 296 | 316 | ||||||||
Reconciliation of adjusted EBITDA to net income: | |||||||||||
Depreciation and amortization - continuing operations | (145) | (137) | (132) | ||||||||
Operating segments | Advanced Materials | |||||||||||
OPERATING SEGMENT INFORMATION | |||||||||||
Total revenues | 1,116 | 1,040 | 1,020 | ||||||||
Segment adjusted EBITDA | 225 | 219 | 223 | ||||||||
Reconciliation of adjusted EBITDA to net income: | |||||||||||
Depreciation and amortization - continuing operations | (37) | (33) | (35) | ||||||||
Operating segments | Textile Effects | |||||||||||
OPERATING SEGMENT INFORMATION | |||||||||||
Total revenues | 824 | 776 | 751 | ||||||||
Segment adjusted EBITDA | 101 | 83 | 73 | ||||||||
Reconciliation of adjusted EBITDA to net income: | |||||||||||
Depreciation and amortization - continuing operations | (16) | (14) | (15) | ||||||||
Corporate and eliminations | |||||||||||
OPERATING SEGMENT INFORMATION | |||||||||||
Total revenues | (10) | 34 | (46) | ||||||||
Corporate and other | |||||||||||
OPERATING SEGMENT INFORMATION | |||||||||||
Segment adjusted EBITDA | (170) | (189) | (184) | ||||||||
Reconciliation of adjusted EBITDA to net income: | |||||||||||
Depreciation and amortization - continuing operations | (16) | (19) | (22) | ||||||||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||||||||
OPERATING SEGMENT INFORMATION | |||||||||||
Total revenues | 2,236 | 2,444 | 2,404 | 2,295 | 2,203 | 2,169 | 2,054 | 1,932 | 9,379 | 8,358 | 7,518 |
Segment adjusted EBITDA | 1,473 | 1,263 | 1,001 | ||||||||
Reconciliation of adjusted EBITDA to net income: | |||||||||||
Interest (expense) income | (136) | (181) | (215) | ||||||||
Interest expense - discontinued operations | (36) | (19) | 1 | ||||||||
Income tax expense - continuing operations | (93) | (61) | (108) | ||||||||
Income tax benefit (expense)-discontinued operations | (34) | (67) | 24 | ||||||||
Depreciation and amortization - continuing operations | (340) | (311) | (306) | ||||||||
Depreciation and amortization - discontinued operations | (68) | (114) | |||||||||
Net income attributable to noncontrolling interests | 313 | 105 | 31 | ||||||||
Other adjustments: | |||||||||||
Acquisition and integration expenses and purchase accounting adjustments | (5) | (19) | (12) | ||||||||
Purchase accounting inventory adjustments | (4) | ||||||||||
Merger costs | (2) | (28) | |||||||||
EBITDA from discontinued operations | (125) | 309 | 76 | ||||||||
Noncontrolling interest of discontinued operations | (232) | (49) | (11) | ||||||||
Fair value adjustments to Venator investment | (62) | ||||||||||
Loss on early extinguishment of debt | (3) | (54) | (3) | ||||||||
Certain legal settlements and related income (expenses) | (6) | 11 | (1) | ||||||||
Gain on sale of assets | 9 | 97 | |||||||||
Amortization of pension and postretirement actuarial losses | (75) | (76) | (58) | ||||||||
Plant incident remediation costs | (1) | (16) | |||||||||
U.S. Tax Reform Act impact on noncontrolling interest | 6 | ||||||||||
Restructuring, impairment and plant closing and transition credits (costs) | 4 | (20) | (48) | ||||||||
Net income | $ (320) | $ (11) | $ 620 | $ 347 | $ 284 | $ 177 | $ 182 | $ 91 | 636 | 734 | 354 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Operating segments | Polyurethanes | |||||||||||
OPERATING SEGMENT INFORMATION | |||||||||||
Segment adjusted EBITDA | 946 | 850 | 569 | ||||||||
Reconciliation of adjusted EBITDA to net income: | |||||||||||
Depreciation and amortization - continuing operations | (129) | (116) | (114) | ||||||||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Operating segments | Performance Products | |||||||||||
OPERATING SEGMENT INFORMATION | |||||||||||
Segment adjusted EBITDA | 367 | 296 | 316 | ||||||||
Reconciliation of adjusted EBITDA to net income: | |||||||||||
Depreciation and amortization - continuing operations | (145) | (137) | (132) | ||||||||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Operating segments | Advanced Materials | |||||||||||
OPERATING SEGMENT INFORMATION | |||||||||||
Segment adjusted EBITDA | 225 | 219 | 223 | ||||||||
Reconciliation of adjusted EBITDA to net income: | |||||||||||
Depreciation and amortization - continuing operations | (37) | (33) | (35) | ||||||||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Operating segments | Textile Effects | |||||||||||
OPERATING SEGMENT INFORMATION | |||||||||||
Segment adjusted EBITDA | 101 | 83 | 73 | ||||||||
Reconciliation of adjusted EBITDA to net income: | |||||||||||
Depreciation and amortization - continuing operations | (16) | (14) | (15) | ||||||||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Corporate and other | |||||||||||
OPERATING SEGMENT INFORMATION | |||||||||||
Segment adjusted EBITDA | (166) | (185) | (180) | ||||||||
Reconciliation of adjusted EBITDA to net income: | |||||||||||
Depreciation and amortization - continuing operations | $ (13) | $ (11) | $ (10) |
OPERATING SEGMENT INFORMATION_2
OPERATING SEGMENT INFORMATION - CAPITAL EXPENDITURES AND ASSETS BY SEGMENT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OPERATING SEGMENT INFORMATION | |||
Capital Expenditures | $ 313 | $ 282 | $ 318 |
Total Assets | 7,953 | 7,364 | 6,949 |
Operating segments | Polyurethanes | |||
OPERATING SEGMENT INFORMATION | |||
Capital Expenditures | 163 | 162 | 143 |
Total Assets | 3,427 | 3,112 | 2,677 |
Operating segments | Performance Products | |||
OPERATING SEGMENT INFORMATION | |||
Capital Expenditures | 100 | 79 | 131 |
Total Assets | 2,088 | 2,069 | 2,046 |
Operating segments | Advanced Materials | |||
OPERATING SEGMENT INFORMATION | |||
Capital Expenditures | 20 | 21 | 16 |
Total Assets | 796 | 796 | 728 |
Operating segments | Textile Effects | |||
OPERATING SEGMENT INFORMATION | |||
Capital Expenditures | 20 | 16 | 19 |
Total Assets | 571 | 564 | 523 |
Corporate and other | |||
OPERATING SEGMENT INFORMATION | |||
Capital Expenditures | 10 | 4 | 9 |
Total Assets | 1,071 | 823 | 975 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
OPERATING SEGMENT INFORMATION | |||
Capital Expenditures | 313 | 282 | 318 |
Total Assets | 8,335 | 7,705 | 7,235 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Operating segments | Polyurethanes | |||
OPERATING SEGMENT INFORMATION | |||
Capital Expenditures | 163 | 162 | 143 |
Total Assets | 3,427 | 3,109 | 2,665 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Operating segments | Performance Products | |||
OPERATING SEGMENT INFORMATION | |||
Capital Expenditures | 100 | 79 | 131 |
Total Assets | 2,088 | 2,069 | 2,045 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Operating segments | Advanced Materials | |||
OPERATING SEGMENT INFORMATION | |||
Capital Expenditures | 20 | 21 | 16 |
Total Assets | 796 | 796 | 728 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Operating segments | Textile Effects | |||
OPERATING SEGMENT INFORMATION | |||
Capital Expenditures | 20 | 16 | 19 |
Total Assets | 571 | 564 | 523 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | Corporate and other | |||
OPERATING SEGMENT INFORMATION | |||
Capital Expenditures | 10 | 4 | 9 |
Total Assets | $ 1,453 | $ 1,167 | $ 1,274 |
OPERATING SEGMENT INFORMATION_3
OPERATING SEGMENT INFORMATION - REVENUES AND LONG-LIVED ASSETS BY GEOGRAPHICAL AREA (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Revenues and long-lived assets | |||||||||||||||
Revenues | $ 2,236 | $ 2,444 | $ 2,404 | $ 2,295 | $ 2,203 | $ 2,169 | $ 2,054 | $ 1,932 | $ 9,379 | $ 8,358 | $ 7,518 | ||||
Long-lived assets | 3,064 | [1] | 3,098 | [1] | 3,064 | [1] | 3,098 | [1] | 3,034 | ||||||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||||||||||||
Revenues and long-lived assets | |||||||||||||||
Revenues | 2,236 | $ 2,444 | $ 2,404 | $ 2,295 | 2,203 | $ 2,169 | $ 2,054 | $ 1,932 | 9,379 | 8,358 | 7,518 | ||||
Long-lived assets | 3,064 | [1] | 3,095 | [1] | 3,064 | [1] | 3,095 | [1] | 3,012 | ||||||
United States | |||||||||||||||
Revenues and long-lived assets | |||||||||||||||
Revenues | 3,160 | 2,729 | 2,514 | ||||||||||||
Long-lived assets | 1,637 | 1,597 | 1,637 | 1,597 | 1,570 | ||||||||||
United States | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||||||||||||
Revenues and long-lived assets | |||||||||||||||
Long-lived assets | 1,637 | 1,594 | 1,637 | 1,594 | 1,548 | ||||||||||
Netherlands | |||||||||||||||
Revenues and long-lived assets | |||||||||||||||
Long-lived assets | 331 | 343 | 331 | 343 | 294 | ||||||||||
Netherlands | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||||||||||||
Revenues and long-lived assets | |||||||||||||||
Long-lived assets | 331 | 343 | 331 | 343 | 294 | ||||||||||
China | |||||||||||||||
Revenues and long-lived assets | |||||||||||||||
Revenues | 1,281 | 1,147 | 908 | ||||||||||||
Long-lived assets | 247 | 268 | 247 | 268 | 235 | ||||||||||
China | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||||||||||||
Revenues and long-lived assets | |||||||||||||||
Long-lived assets | 247 | 268 | 247 | 268 | 235 | ||||||||||
Saudi Arabia | |||||||||||||||
Revenues and long-lived assets | |||||||||||||||
Long-lived assets | 161 | 172 | 161 | 172 | 185 | ||||||||||
Saudi Arabia | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||||||||||||
Revenues and long-lived assets | |||||||||||||||
Long-lived assets | 161 | 172 | 161 | 172 | 185 | ||||||||||
Germany | |||||||||||||||
Revenues and long-lived assets | |||||||||||||||
Revenues | 537 | 508 | 466 | ||||||||||||
Long-lived assets | 143 | 163 | 143 | 163 | 136 | ||||||||||
Germany | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||||||||||||
Revenues and long-lived assets | |||||||||||||||
Long-lived assets | 143 | 163 | 143 | 163 | 136 | ||||||||||
Mexico | |||||||||||||||
Revenues and long-lived assets | |||||||||||||||
Revenues | 587 | 481 | 433 | ||||||||||||
Switzerland | |||||||||||||||
Revenues and long-lived assets | |||||||||||||||
Long-lived assets | 108 | 112 | 108 | 112 | 110 | ||||||||||
Switzerland | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||||||||||||
Revenues and long-lived assets | |||||||||||||||
Long-lived assets | 108 | 112 | 108 | 112 | 110 | ||||||||||
Singapore | |||||||||||||||
Revenues and long-lived assets | |||||||||||||||
Long-lived assets | 96 | 100 | 96 | 100 | 110 | ||||||||||
Singapore | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||||||||||||
Revenues and long-lived assets | |||||||||||||||
Long-lived assets | 96 | 100 | 96 | 100 | 110 | ||||||||||
Other nations | |||||||||||||||
Revenues and long-lived assets | |||||||||||||||
Revenues | 3,814 | 3,493 | 3,197 | ||||||||||||
Long-lived assets | 341 | 343 | 341 | 343 | 394 | ||||||||||
Other nations | HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||||||||||||||
Revenues and long-lived assets | |||||||||||||||
Long-lived assets | $ 341 | $ 343 | $ 341 | $ 343 | $ 394 | ||||||||||
[1] | At December 31, 2018 and December 31, 2017, respectively, $7 and $15 of cash and cash equivalents, nil and $11 of restricted cash, 30 and $35 of accounts and notes receivable (net), $49 and $46 of inventories, $5 and $7 of other current assets, $265 and $283 of property, plant and equipment (net), $10 each of intangible assets (net), $52 and $43 of other noncurrent assets, $123 and $109 of accounts payable, $30 and $32 of accrued liabilities, $25 and $21 of current portion of debt, $61 and $86 of longterm debt, and $97 and $98 of other noncurrent liabilities from consolidated variable interest entities are included in the respective Balance Sheet captions above. See “Note 8. Variable Interest Entities.” |
SELECTED UNAUDITED QUARTERLY _3
SELECTED UNAUDITED QUARTERLY FINANCIAL DATA (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Quarterly Financial Information | ||||||||||||||
Revenues | $ 2,236 | $ 2,444 | $ 2,404 | $ 2,295 | $ 2,203 | $ 2,169 | $ 2,054 | $ 1,932 | $ 9,379 | $ 8,358 | $ 7,518 | |||
Gross profit | 406 | 524 | 555 | 540 | 508 | 472 | 436 | 390 | 2,025 | 1,806 | 1,518 | |||
Restructuring, impairment and plant closing (credits) costs | (13) | 5 | 1 | 2 | 7 | 1 | 3 | 9 | (5) | 20 | 47 | |||
Income from continuing operations | 91 | 229 | 289 | 236 | 230 | 116 | 138 | 99 | 845 | 583 | 365 | |||
Net income | (315) | (8) | 623 | 350 | 287 | 179 | 183 | 92 | 650 | 741 | 357 | |||
Net income attributable to noncontrolling interests | 25 | 3 | 209 | 76 | 41 | 32 | 16 | 16 | 313 | 105 | 31 | |||
Net income attributable to Huntsman Corporation or Huntsman International | $ (340) | $ (11) | $ 414 | $ 274 | $ 246 | $ 147 | $ 167 | $ 76 | $ 337 | $ 636 | $ 326 | |||
Basic income per share | ||||||||||||||
Income from continuing operations attributable to Huntsman Corporation common stockholders (in dollars per share) | $ 0.32 | $ 0.86 | $ 1.12 | $ 0.66 | $ 0.79 | $ 0.36 | $ 0.51 | $ 0.35 | $ 3.21 | $ 2.01 | $ 1.41 | |||
Net income attributable to Huntsman Corporation common stockholders (in dollars per share) | (1.45) | (0.05) | 1.73 | 1.14 | 1.03 | 0.62 | 0.70 | 0.32 | 1.42 | 2.67 | 1.38 | |||
Diluted income per share | ||||||||||||||
Income from continuing operations attributable to Huntsman Corporation common stockholders (in dollars per share) | 0.32 | 0.85 | 1.11 | 0.65 | 0.77 | 0.34 | 0.50 | 0.34 | 3.16 | 1.96 | 1.39 | |||
Net income (loss) attributable to Huntsman Corporation common stockholders (in dollars per share) | $ (1.43) | $ (0.05) | $ 1.71 | $ 1.11 | $ 1 | $ 0.60 | $ 0.69 | $ 0.31 | $ 1.39 | $ 2.61 | $ 1.36 | |||
U.S. Tax Reform Act which resulted in income tax benefit | $ 52 | $ 137 | ||||||||||||
Unrealized losses on fair value adjustments to Venator investment | $ 62 | |||||||||||||
Venator Materials PLC | ||||||||||||||
Diluted income per share | ||||||||||||||
Unrealized losses on fair value adjustments to Venator investment | $ 57 | |||||||||||||
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | ||||||||||||||
Quarterly Financial Information | ||||||||||||||
Revenues | $ 2,236 | $ 2,444 | $ 2,404 | $ 2,295 | 2,203 | $ 2,169 | $ 2,054 | $ 1,932 | 9,379 | 8,358 | $ 7,518 | |||
Gross profit | 406 | 525 | 556 | 541 | 509 | 474 | 437 | 392 | 2,028 | 1,812 | 1,525 | |||
Restructuring, impairment and plant closing (credits) costs | (13) | 5 | 1 | 2 | 7 | 1 | 3 | 9 | (5) | 20 | 47 | |||
Income from continuing operations | 86 | 226 | 286 | 233 | 227 | 115 | 139 | 98 | 831 | 579 | 367 | |||
Net income | (320) | (11) | 620 | 347 | 284 | 177 | 182 | 91 | 636 | 734 | 354 | |||
Net income attributable to noncontrolling interests | 313 | 105 | 31 | |||||||||||
Net income attributable to Huntsman Corporation or Huntsman International | (345) | (14) | $ 411 | $ 271 | 243 | $ 145 | $ 166 | $ 75 | 323 | $ 629 | $ 323 | |||
Diluted income per share | ||||||||||||||
U.S. Tax Reform Act which resulted in income tax benefit | $ 53 | |||||||||||||
Unrealized losses on fair value adjustments to Venator investment | $ 62 | |||||||||||||
Discontinued Operations, Disposed of by Means Other than Sale | Venator Pigments and Additives Business | ||||||||||||||
Diluted income per share | ||||||||||||||
Pre-tax loss on discontinued operations | $ 427 | $ 427 | ||||||||||||
Discontinued Operations, Held-for-sale | Venator Pigments and Additives Business | ||||||||||||||
Diluted income per share | ||||||||||||||
Valuation allowance | $ 270 | |||||||||||||
Forward Swap | Venator Materials PLC | ||||||||||||||
Diluted income per share | ||||||||||||||
Unrealized losses on fair value adjustments to Venator investment | $ 5 | $ 5 |
Schedule I - Condensed Financ_2
Schedule I - Condensed Financial Information of Registrant (PARENT ONLY) - BALANCE SHEETS (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
ASSETS | |||||
Cash and cash equivalents | [1] | $ 340 | $ 470 | ||
Prepaid assets | 66 | 60 | |||
Receivable from affiliate | 18 | 27 | |||
Total current assets | 2,958 | 5,979 | |||
Investment in and advances to affiliates | 526 | 266 | |||
Total assets | 7,953 | 10,244 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Payable to affiliate | 32 | 18 | |||
Accrued liabilities | [1] | 554 | 569 | ||
Total current liabilities | 1,611 | 3,265 | |||
Other long-term liabilities | [1] | 1,073 | 1,086 | ||
Total liabilities | 5,204 | 6,873 | |||
STOCKHOLDERS' EQUITY | |||||
Common stock $0.01 par value, 1,200,000,000 shares authorized, 256,006,849 and 252,759,715 shares issued and 232,994,172 and 240,213,606 shares outstanding, respectively | 3 | 3 | |||
Additional paid-in capital | 3,984 | 3,889 | |||
Treasury stock, 23,012,680 and 12,607,223 shares, respectively | (427) | (150) | |||
Unearned stock-based compensation | (16) | (15) | |||
Retained earnings (accumulated deficit) | 292 | 161 | |||
Accumulated other comprehensive loss | (1,316) | (1,268) | |||
Total Huntsman Corporation stockholders' equity | 2,520 | 2,620 | |||
Total liabilities and equity | $ 7,953 | $ 10,244 | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Common stock, shares authorized | 1,200,000,000 | 1,200,000,000 | |||
Common stock, shares issued | 256,006,849 | 252,759,715 | |||
Common stock, shares outstanding | 232,994,172 | 240,213,606 | |||
Treasury stock, shares | 23,012,680 | 12,607,223 | |||
Parent | |||||
ASSETS | |||||
Cash and cash equivalents | $ 2 | ||||
Prepaid assets | $ 1 | 1 | |||
Receivable from affiliate | 72 | 54 | |||
Note receivable from affiliate | 100 | 100 | |||
Total current assets | 173 | 157 | |||
Note receivable from affiliate-long-term | 488 | 742 | |||
Investment in and advances to affiliates | 2,251 | 2,082 | |||
Total assets | 2,912 | 2,981 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Payable to affiliate | 381 | 346 | |||
Accrued liabilities | 3 | 3 | |||
Total current liabilities | 384 | 349 | |||
Other long-term liabilities | 8 | 12 | |||
Total liabilities | 392 | 361 | |||
STOCKHOLDERS' EQUITY | |||||
Common stock $0.01 par value, 1,200,000,000 shares authorized, 256,006,849 and 252,759,715 shares issued and 232,994,172 and 240,213,606 shares outstanding, respectively | 3 | 3 | |||
Additional paid-in capital | 3,984 | 3,889 | |||
Treasury stock, 23,012,680 and 12,607,223 shares, respectively | (427) | (150) | |||
Unearned stock-based compensation | (16) | (15) | |||
Retained earnings (accumulated deficit) | 292 | 161 | |||
Accumulated other comprehensive loss | (1,316) | (1,268) | |||
Total Huntsman Corporation stockholders' equity | 2,520 | 2,620 | $ 1,287 | $ 1,442 | |
Total liabilities and equity | $ 2,912 | $ 2,981 | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Common stock, shares authorized | 1,200,000,000 | 1,200,000,000 | |||
Common stock, shares issued | 256,006,849 | 252,759,715 | |||
Common stock, shares outstanding | 232,994,172 | 240,213,606 | |||
Treasury stock, shares | 23,012,680 | 12,607,223 | |||
[1] | At December 31, 2018 and December 31, 2017, respectively, $7 and $15 of cash and cash equivalents, nil and $11 of restricted cash, 30 and $35 of accounts and notes receivable (net), $49 and $46 of inventories, $5 and $7 of other current assets, $265 and $283 of property, plant and equipment (net), $10 each of intangible assets (net), $52 and $43 of other noncurrent assets, $123 and $109 of accounts payable, $30 and $32 of accrued liabilities, $25 and $21 of current portion of debt, $61 and $86 of longterm debt, and $97 and $98 of other noncurrent liabilities from consolidated variable interest entities are included in the respective Balance Sheet captions above. See “Note 8. Variable Interest Entities.” |
Schedule I - Condensed Financ_3
Schedule I - Condensed Financial Information of Registrant (PARENT ONLY) - STATEMENTS OF OPERATIONS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION | |||||||||||
Selling, general and administrative expenses | $ (830) | $ (798) | $ (772) | ||||||||
Interest (expense) income | (115) | (165) | (203) | ||||||||
Equity in income (loss) of subsidiaries | 55 | 13 | 5 | ||||||||
Other income, net | 29 | 8 | 12 | ||||||||
Net income attributable to Huntsman Corporation or Huntsman International LLC | $ (340) | $ (11) | $ 414 | $ 274 | $ 246 | $ 147 | $ 167 | $ 76 | 337 | 636 | 326 |
Parent | |||||||||||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION | |||||||||||
Selling, general and administrative expenses | (4) | (4) | (4) | ||||||||
Interest (expense) income | 21 | 16 | 12 | ||||||||
Equity in income (loss) of subsidiaries | 163 | 501 | 196 | ||||||||
Dividend income - affiliate | 154 | 120 | 119 | ||||||||
Other income, net | 3 | 3 | 3 | ||||||||
Net income attributable to Huntsman Corporation or Huntsman International LLC | $ 337 | $ 636 | $ 326 |
Schedule I - Condensed Financ_4
Schedule I - Condensed Financial Information of Registrant (PARENT ONLY) - STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION | |||||||||||
Net income | $ (315) | $ (8) | $ 623 | $ 350 | $ 287 | $ 179 | $ 183 | $ 92 | $ 650 | $ 741 | $ 357 |
Other comprehensive income (loss), net of tax | |||||||||||
Foreign currency translation adjustments | (192) | 210 | (171) | ||||||||
Pension and other postretirement benefits adjustments | (39) | 86 | (219) | ||||||||
Other, net | (9) | (1) | |||||||||
Other comprehensive (loss) income, net of tax | (240) | 296 | (391) | ||||||||
Comprehensive loss | 410 | 1,037 | (34) | ||||||||
Comprehensive income attributable to noncontrolling interests | (266) | (127) | (23) | ||||||||
Comprehensive income (loss) attributable to Huntsman Corporation | 144 | 910 | (57) | ||||||||
Parent | |||||||||||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION | |||||||||||
Net income | 337 | 636 | 326 | ||||||||
Other comprehensive income (loss), net of tax | |||||||||||
Foreign currency translation adjustments | (192) | 210 | (171) | ||||||||
Pension and other postretirement benefits adjustments | (39) | 86 | (219) | ||||||||
Other, net | 304 | 105 | 30 | ||||||||
Other comprehensive (loss) income, net of tax | 73 | 401 | (360) | ||||||||
Comprehensive loss | 410 | 1,037 | (34) | ||||||||
Comprehensive income attributable to noncontrolling interests | (266) | (127) | (23) | ||||||||
Comprehensive income (loss) attributable to Huntsman Corporation | $ 144 | $ 910 | $ (57) |
Schedule I - Condensed Financ_5
Schedule I - Condensed Financial Information of Registrant (PARENT ONLY) - STATEMENTS OF STOCKHOLDERS' EQUITY (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Balance | $ 2,520 | $ 2,620 | $ 2,620 | |||||||||
Balance (in shares) | 232,994,172 | 240,213,606 | 240,213,606 | |||||||||
Net (loss) income attributable to Huntsman Corporation | $ (340) | $ (11) | $ 414 | $ 274 | $ 246 | $ 147 | $ 167 | $ 76 | $ 337 | $ 636 | $ 326 | |
Vesting of stock awards | 11 | 8 | 2 | |||||||||
Recognition of stock-based compensation | 21 | 28 | 25 | |||||||||
Repurchase and cancellation of stock awards | (30) | (12) | (3) | |||||||||
Stock options exercised | 17 | 35 | 1 | |||||||||
Excess tax benefit related to stock‑based compensation | (3) | |||||||||||
Treasury stock repurchased | $ (277) | |||||||||||
Treasury stock repurchased (in shares) | (537,018) | (10,405,457) | ||||||||||
Disposition of a portion of Venator | $ 18 | 413 | ||||||||||
Costs of public offering of venator | (2) | (58) | ||||||||||
Accrued and unpaid dividends | (1) | |||||||||||
Dividends declared on common stock | (156) | (120) | (120) | |||||||||
Deconsolidation of Venator | (591) | |||||||||||
Balance | $ 2,520 | $ 2,620 | $ 2,520 | $ 2,620 | ||||||||
Balance (in shares) | 232,994,172 | 240,213,606 | 232,994,172 | 240,213,606 | ||||||||
Parent | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Balance | $ 2,520 | $ 2,620 | $ 1,287 | $ 2,620 | $ 1,287 | 1,442 | ||||||
Balance (in shares) | 232,994,172 | 240,213,606 | 240,213,606 | |||||||||
Net (loss) income attributable to Huntsman Corporation | $ 337 | 636 | 326 | |||||||||
Other comprehensive income (loss) | (198) | 403 | (383) | |||||||||
Vesting of stock awards | 11 | 8 | 2 | |||||||||
Recognition of stock-based compensation | 21 | 28 | 25 | |||||||||
Repurchase and cancellation of stock awards | (30) | (12) | (3) | |||||||||
Stock options exercised | 17 | 35 | 1 | |||||||||
Excess tax benefit related to stock‑based compensation | (3) | |||||||||||
Treasury stock repurchased | (277) | |||||||||||
Disposition of a portion of Venator | 18 | 413 | ||||||||||
Costs of public offering of venator | (2) | (58) | ||||||||||
Accrued and unpaid dividends | (1) | |||||||||||
Dividends declared on common stock | (156) | (120) | (120) | |||||||||
Deconsolidation of Venator | 160 | |||||||||||
Balance | $ 2,520 | $ 2,620 | $ 2,520 | $ 2,620 | $ 1,287 | |||||||
Balance (in shares) | 232,994,172 | 240,213,606 | 232,994,172 | 240,213,606 | ||||||||
Common stock | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Balance (in shares) | 232,994,172 | 240,213,606 | 236,370,347 | 240,213,606 | 236,370,347 | 237,080,026 | ||||||
Vesting of stock awards (in shares) | 1,135,003 | 1,316,975 | 914,081 | |||||||||
Repurchase and cancellation of stock awards (in shares) | (259,643) | (402,978) | (256,468) | |||||||||
Stock options exercised (in shares) | 2,310,663 | 2,929,262 | 77,477 | |||||||||
Treasury stock repurchased (in shares) | (10,405,457) | (1,444,769) | ||||||||||
Balance (in shares) | 232,994,172 | 240,213,606 | 232,994,172 | 240,213,606 | 236,370,347 | |||||||
Common stock | Parent | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Balance | $ 3 | $ 3 | $ 3 | $ 3 | $ 3 | $ 3 | ||||||
Balance (in shares) | 232,994,172 | 240,213,606 | 236,370,347 | 240,213,606 | 236,370,347 | 237,080,026 | ||||||
Vesting of stock awards (in shares) | 1,135,003 | 1,316,975 | 914,081 | |||||||||
Repurchase and cancellation of stock awards (in shares) | (259,643) | (402,978) | (256,468) | |||||||||
Stock options exercised (in shares) | 2,310,663 | 2,929,262 | 77,477 | |||||||||
Treasury stock repurchased (in shares) | (10,405,457) | (1,444,769) | ||||||||||
Balance | $ 3 | $ 3 | $ 3 | $ 3 | $ 3 | |||||||
Balance (in shares) | 232,994,172 | 240,213,606 | 232,994,172 | 240,213,606 | 236,370,347 | |||||||
Additional paid-in capital | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Issuance of nonvested stock awards | $ 14 | $ 18 | $ 16 | |||||||||
Vesting of stock awards | 11 | 8 | 2 | |||||||||
Recognition of stock-based compensation | 8 | 10 | 9 | |||||||||
Stock options exercised | 46 | 53 | 1 | |||||||||
Excess tax benefit related to stock‑based compensation | (3) | |||||||||||
Treasury stock repurchased | 15 | |||||||||||
Disposition of a portion of Venator | 18 | 413 | ||||||||||
Costs of public offering of venator | (2) | (58) | ||||||||||
Additional paid-in capital | Parent | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Balance | $ 3,984 | $ 3,889 | $ 3,447 | 3,889 | 3,447 | 3,407 | ||||||
Issuance of nonvested stock awards | 14 | 18 | 16 | |||||||||
Vesting of stock awards | 11 | 8 | 2 | |||||||||
Recognition of stock-based compensation | 8 | 10 | 9 | |||||||||
Stock options exercised | 46 | 53 | 1 | |||||||||
Excess tax benefit related to stock‑based compensation | (3) | |||||||||||
Treasury stock repurchased | 15 | |||||||||||
Disposition of a portion of Venator | 18 | 413 | ||||||||||
Costs of public offering of venator | (2) | (58) | ||||||||||
Conversion of restricted awards to Venator awards | (2) | |||||||||||
Balance | $ 3,984 | $ 3,889 | 3,984 | 3,889 | 3,447 | |||||||
Treasury stock | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Treasury stock repurchased | (277) | (15) | ||||||||||
Treasury stock | Parent | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Balance | (427) | (150) | (150) | (150) | (150) | (135) | ||||||
Treasury stock repurchased | (277) | (15) | ||||||||||
Balance | (427) | (150) | (427) | (150) | (150) | |||||||
Unearned stock-based compensation | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Issuance of nonvested stock awards | (14) | (18) | (16) | |||||||||
Recognition of stock-based compensation | 13 | 18 | 16 | |||||||||
Unearned stock-based compensation | Parent | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Balance | (16) | (15) | (17) | (15) | (17) | (17) | ||||||
Issuance of nonvested stock awards | (14) | (18) | (16) | |||||||||
Recognition of stock-based compensation | 13 | 18 | 16 | |||||||||
Conversion of restricted awards to Venator awards | 2 | |||||||||||
Balance | (16) | (15) | (16) | (15) | (17) | |||||||
Retained earnings (accumulated deficit) | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Repurchase and cancellation of stock awards | (30) | (12) | (3) | |||||||||
Stock options exercised | (29) | (18) | ||||||||||
Accrued and unpaid dividends | (1) | |||||||||||
Dividends declared on common stock | (156) | (120) | (120) | |||||||||
Retained earnings (accumulated deficit) | ASU 2016-01 | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Cumulative effect of changes in fair value of equity investments | 10 | 10 | ||||||||||
Retained earnings (accumulated deficit) | Parent | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Balance | 292 | 161 | (325) | 161 | (325) | (528) | ||||||
Net (loss) income attributable to Huntsman Corporation | 337 | 636 | 326 | |||||||||
Repurchase and cancellation of stock awards | (30) | (12) | (3) | |||||||||
Stock options exercised | (29) | (18) | ||||||||||
Accrued and unpaid dividends | (1) | |||||||||||
Dividends declared on common stock | (156) | (120) | (120) | |||||||||
Balance | 292 | 161 | 292 | 161 | (325) | |||||||
Retained earnings (accumulated deficit) | Parent | ASU 2016-01 | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Cumulative effect of changes in fair value of equity investments | 10 | 10 | ||||||||||
Accumulated other comprehensive (loss) income | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Deconsolidation of Venator | 160 | |||||||||||
Accumulated other comprehensive (loss) income | ASU 2016-01 | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Cumulative effect of changes in fair value of equity investments | (10) | (10) | ||||||||||
Accumulated other comprehensive (loss) income | Parent | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Balance | $ (1,316) | $ (1,268) | $ (1,671) | (1,268) | (1,671) | (1,288) | ||||||
Other comprehensive income (loss) | (198) | 403 | (383) | |||||||||
Deconsolidation of Venator | 160 | |||||||||||
Balance | $ (1,316) | (1,268) | $ (1,316) | (1,268) | $ (1,671) | |||||||
Accumulated other comprehensive (loss) income | Parent | ASU 2016-01 | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Cumulative effect of changes in fair value of equity investments | $ (10) | $ (10) |
Schedule I - Condensed Financ_6
Schedule I - Condensed Financial Information of Registrant (PARENT ONLY) - STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Activities: | |||||||||||
Net income | $ (315) | $ (8) | $ 623 | $ 350 | $ 287 | $ 179 | $ 183 | $ 92 | $ 650 | $ 741 | $ 357 |
Equity in (income) loss of subsidiaries | (55) | (13) | (5) | ||||||||
Stock-based compensation | 27 | 36 | 32 | ||||||||
Net cash provided by operating activities | 1,207 | 1,219 | 1,088 | ||||||||
Investing Activities: | |||||||||||
Net cash used in investing activities | (973) | (424) | (203) | ||||||||
Financing Activities: | |||||||||||
Dividends paid to common stockholders | (39) | $ (39) | $ (39) | (39) | (30) | $ (30) | $ (30) | (30) | (156) | (120) | (120) |
Repurchase and cancellation of stock awards | (30) | (12) | (3) | ||||||||
Proceeds from issuance of common stock | 17 | 35 | 1 | ||||||||
Repurchase of common stock | (277) | ||||||||||
Other, net | 1 | 1 | (1) | ||||||||
Net cash used in financing activities | (424) | (519) | (723) | ||||||||
(Decrease) increase in cash, cash equivalents and restricted cash | (225) | 294 | 156 | ||||||||
Cash, cash equivalents and restricted cash from continuing operations at beginning of period | 481 | 396 | 481 | 396 | 248 | ||||||
Cash, cash equivalents and restricted cash from continuing operations at end of period | 481 | 481 | 396 | ||||||||
Parent | |||||||||||
Operating Activities: | |||||||||||
Net income | 337 | 636 | 326 | ||||||||
Equity in (income) loss of subsidiaries | (163) | (501) | (196) | ||||||||
Stock-based compensation | 1 | 1 | 1 | ||||||||
Noncash interest income | (21) | (16) | (12) | ||||||||
Changes in operating assets and liabilities | 19 | 10 | 9 | ||||||||
Net cash provided by operating activities | 173 | 130 | 128 | ||||||||
Investing Activities: | |||||||||||
Loan to affiliate | (47) | ||||||||||
Proceeds from loan repayment by affiliate | 255 | 1 | |||||||||
Net cash used in investing activities | 255 | (47) | 1 | ||||||||
Financing Activities: | |||||||||||
Dividends paid to common stockholders | (156) | (120) | (120) | ||||||||
Repurchase and cancellation of stock awards | (30) | (12) | (3) | ||||||||
Proceeds from issuance of common stock | 17 | 35 | 1 | ||||||||
Repurchase of common stock | (277) | ||||||||||
Increase (decrease) in payable to affiliates | 16 | 15 | (6) | ||||||||
Net cash used in financing activities | (430) | (82) | (128) | ||||||||
(Decrease) increase in cash, cash equivalents and restricted cash | (2) | 1 | 1 | ||||||||
Cash, cash equivalents and restricted cash from continuing operations at beginning of period | $ 2 | $ 1 | 2 | 1 | 0 | ||||||
Cash, cash equivalents and restricted cash from continuing operations at end of period | $ 0 | $ 2 | $ 0 | $ 2 | $ 1 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule II - Valuation and Qualifying Accounts | |||
Balance at Beginning of Period | $ 25 | $ 23 | $ 22 |
Charges (credits) to cost and expenses | 2 | 3 | 2 |
Charged to other accounts | (5) | (1) | (1) |
Balance at End of Period | 22 | 25 | 23 |
HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES | |||
Schedule II - Valuation and Qualifying Accounts | |||
Balance at Beginning of Period | 25 | 23 | 22 |
Charges (credits) to cost and expenses | 2 | 3 | 2 |
Charged to other accounts | (5) | (1) | (1) |
Balance at End of Period | $ 22 | $ 25 | $ 23 |