乐天堂fun88(中国区)官方网站 Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax

听

Schedule of income tax expense (benefit)

The following is a summary of U.S. and non鈥慤.S. provisions for current and deferred income taxes (dollars in millions):

乐天堂fun88(中国区)官方网站 Corporation

听	听	听	听	听	听	听	听	听	听
听	听	Year ended December听31,听
听	听	2018		听	2017		听	2016
Income tax expense (benefit):	听听听听	听	听	听听听听	听	听	听听听听	听	听
U.S.	听	听	听	听	听	听	听	听	听
Current	听	$	57	听	$	23	听	$	50
Deferred	听	听	19	听	听	(95)	听	听	(15)
Non-U.S.	听	听	听	听	听	听	听	听	听
Current	听	听	155	听	听	94	听	听	55
Deferred	听	听	(134)	听	听	42	听	听	19
Total	听	$	97	听	$	64	听	$	109

听

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):

乐天堂fun88(中国区)官方网站 Corporation

听	听	听	听	听	听	听	听	听	听
听	听	Year ended December听31,听
听	听	2018		听	2017		听	2016
Income from continuing operations before income taxes	听听听听	$	942	听听听听	$	647	听听听听	$	474
Expected tax expense at U.S. statutory rate of 21%, 听35% and 35% respectively	听	$	198	听	$	227	听	$	166
Change resulting from:	听	听	听	听	听	听	听	听	听
State tax expense net of federal benefit	听	听	听5	听	听	(2)	听	听	(1)
Non-U.S. tax rate differentials	听	听	29	听	听	(64)	听	听	(32)
Non-taxable portion of gain on sale of European surfactants business	听	听	听鈥�	听	听	鈥�	听	听	(23)
U.S. Tax Reform Act impact	听	听	32	听	听	(52)	听	听	鈥�
Currency exchange gains/losses (net)	听	听	(10)	听	听	15	听	听	(5)
Non-U.S. income subject to U.S. tax not offset by U.S. foreign tax credits	听	听	16	听	听	鈥�	听	听	鈥�
Tax authority audits and dispute resolutions	听	听	听5	听	听	听9	听	听	听2
Share-based compensation excess tax benefits	听	听	(14)	听	听	(10)	听	听	听鈥�
Change in valuation allowance	听	听	(185)	听	听	(72)	听	听	(38)
Fair value adjustments to Venator investment	听	听	18	听	听	听鈥�	听	听	听鈥�
Impact of equity method investments	听	听	(14)	听	听	(3)	听	听	(1)
Other non-U.S. tax effects, including nondeductible expenses, tax effect of rate changes, transfer pricing adjustments and various withholding taxes	听	听	17	听	听	听7	听	听	31
Other U.S. tax effects, including nondeductible expenses and other credits	听	听	听鈥�	听	听	听9	听	听	10
Total income tax expense	听	$	97	听	$	64	听	$	109

听

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):

乐天堂fun88(中国区)官方网站 Corporation

听	听	听	听	听	听	听	听	听	听
听	听	Year ended December听31,听
听	听	2018		听	2017		听	2016
U.S.	听听听听	$	165	听听听听	$	(39)	听听听听	$	91
Non-U.S.	听	听	777	听	听	686	听	听	383
Total	听	$	942	听	$	647	听	$	474

听

Schedule of components of deferred income tax assets and liabilities

Components of deferred income tax assets and liabilities were as follows (dollars in millions):

乐天堂fun88(中国区)官方网站 Corporation

听	听	听	听	听	听	听
听	听	December听31,听
听	听	2018		听	2017
Deferred income tax assets:	听听听听	听	听	听听听听	听	听
Net operating loss carryforwards	听	$	359	听	$	411
Pension and other employee compensation	听	听	198	听	听	205
Property, plant and equipment	听	听	20	听	听	29
Intangible assets	听	听	79	听	听	88
Unrealized currency gains	听	听	听鈥�	听	听	听8
Other, net	听	听	45	听	听	46
Total	听	$	701	听	$	787
Deferred income tax liabilities:	听	听	听	听	听	听
Property, plant and equipment	听	$	(363)	听	$	(351)
Pension and other employee compensation	听	听	听鈥�	听	听	(3)
Intangible assets	听	听	(34)	听	听	(7)
Unrealized currency losses	听	听	(37)	听	听	(27)
Other, net	听	听	(12)	听	听	(31)
Total	听	$	(446)	听	$	(419)
Net deferred tax asset before valuation allowance	听	$	255	听	$	368
Valuation allowance鈥攏et operating losses and other	听	听	(227)	听	听	(424)
Net deferred tax asset (liability)	听	$	28	听	$	(56)
Non-current deferred tax asset	听	听	324	听	听	208
Non-current deferred tax liability	听	听	(296)	听	听	(264)
Net deferred tax asset (liability)	听	$	28	听	$	(56)

听

Schedule of changes in valuation allowance

The following is a summary of changes in the valuation allowance (dollars in millions):

乐天堂fun88(中国区)官方网站 Corporation

听	听	听	听	听	听	听	听	听	听
听	听听听听	2018		听听听听	2017		听听听听	2016
Valuation allowance as of January听1	听	$	424	听	$	496	听	$	526
Valuation allowance as of December听31	听	听	227	听	听	424	听	听	496
Net (increase) decrease	听	听	197	听	听	72	听	听	30
Foreign currency movements	听	听	听3	听	听	11	听	听	(11)
(Decrease) increase to deferred tax assets with no impact on operating tax expense, including an offsetting (decrease) increase to valuation allowances	听	听	(15)	听	听	(11)	听	听	19
Change in valuation allowance per rate reconciliation	听	$	185	听	$	72	听	$	38
Components of change in valuation allowance affecting tax expense:	听	听	听	听	听	听	听	听	听
Pre-tax income and losses in jurisdictions with valuation allowances resulting in no tax expense or benefit	听	$	53	听	$	50	听	$	31
Releases of valuation allowances in various jurisdictions	听	听	132	听	听	22	听	听	19
Establishments of valuation allowances in various jurisdictions	听	听	听鈥�	听	听	听鈥�	听	听	(12)
Change in valuation allowance per rate reconciliation	听	$	185	听	$	72	听	$	38

听

Schedule of reconciliation of unrecognized tax benefits

The following is a reconciliation of our unrecognized tax benefits (dollars in millions):

听	听	听	听	听	听	听
听	听听听听	2018		听听听听	2017
Unrecognized tax benefits as of January听1	听	$	23	听	$	17
Gross increases and decreases鈥攖ax positions taken during a prior period	听	听	听1	听	听	听3
Gross increases and decreases鈥攖ax positions taken during the current period	听	听	听3	听	听	听4
Decreases related to settlements of amounts due to tax authorities	听	听	听鈥�	听	听	听鈥�
Reductions resulting from the lapse of statutes of limitation	听	听	听鈥�	听	听	(2)
Foreign currency movements	听	听	(1)	听	听	听1
Unrecognized tax benefits as of December听31	听	$	26	听	$	23

听

Schedule of interest and penalties accrued related to unrecognized tax benefits included in the income tax expense

听

听	听	听	听	听	听	听	听	听	听
听	听	Year ended December听31,听
听	听	2018		听	2017		听	2016
Interest expense included in tax expense	听听听听	$	听鈥�	听听听听	$	听鈥�	听听听听	$	听1
Penalties expense included in tax expense	听	听	鈥�	听	听	鈥�	听	听	鈥�

听

听	听	听	听	听	听	听
听	听	December听31,听
听	听	2018		听	2017
Accrued liability for interest	听听听听	$	听3	听听听听	$	听3
Accrued liability for penalties	听	听	鈥�	听	听	鈥�

听

Summary of the tax years that remain subject to examination by major tax jurisdictions

听	听	听
Tax听Jurisdiction	听听听听	Open听Tax听Years
China	听	2009听and听later
Hong Kong	听	2015听and听later
Germany	听	2013听and听later
India	听	2004听and听later
Italy	听	2014听and听later
Mexico	听	2013听and听later
Switzerland	听	2011听and听later
Thailand	听	2012听and听later
The Netherlands	听	2015听and听later
United Kingdom	听	2017听and听later
United States federal	听	2017听and听later

听

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES

听

Income Tax

听

Schedule of income tax expense (benefit)

听	听	听	听	听	听	听	听	听	听
听	听	Year ended December听31,听
听	听	2018		听	2017		听	2016
Income tax expense (benefit):	听听听听	听	听听听听	听听听听	听	听听听听	听听听听	听	听听听听
U.S.	听	听	听	听	听	听	听	听	听
Current	听	$	57	听	$	16	听	$	50
Deferred	听	听	15	听	听	(92)	听	听	(16)
Non-U.S.	听	听	听	听	听	听	听	听	听
Current	听	听	155	听	听	94	听	听	55
Deferred	听	听	(134)	听	听	43	听	听	19
Total	听	$	93	听	$	61	听	$	108

听

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

听	听	听	听	听	听	听	听	听	听
听	听	Year ended December听31,听
听	听	2018		听	2017		听	2016
Income from continuing operations before income taxes	听听听听	$	924	听听听听	$	640	听听听听	$	475
Expected tax expense at U.S. statutory rate of 21%, 听35% and 35% respectively	听	$	194	听	$	224	听	$	165
Change resulting from:	听	听	听	听	听	听	听	听	听
State tax expense net of federal benefit	听	听	听5	听	听	(2)	听	听	(1)
Non-U.S. tax rate differentials	听	听	29	听	听	(64)	听	听	(32)
Non-taxable portion of gain on sale of European surfactants business	听	听	听鈥�	听	听	听鈥�	听	听	(23)
U.S. Tax Reform Act impact	听	听	32	听	听	(53)	听	听	鈥�
Currency exchange gains/losses (net)	听	听	(10)	听	听	15	听	听	(5)
Non-U.S. income subject to U.S. tax not offset by U.S. foreign tax credits	听	听	16	听	听	听鈥�	听	听	鈥�
Tax authority audits and dispute resolutions	听	听	听5	听	听	听9	听	听	听2
Share-based compensation excess tax benefits	听	听	(14)	听	听	(10)	听	听	听鈥�
Change in valuation allowance	听	听	(185)	听	听	(72)	听	听	(39)
Fair value adjustments to Venator investment	听	听	18	听	听	听鈥�	听	听	听鈥�
Impact of equity method investments	听	听	(14)	听	听	(3)	听	听	(1)
Other non-U.S. tax effects, including nondeductible expenses, tax effect of rate changes, transfer pricing adjustments and various withholding taxes	听	听	17	听	听	听8	听	听	33
Other U.S. tax effects, including nondeductible expenses and other credits	听	听	听鈥�	听	听	听9	听	听	听9
Total income tax expense	听	$	93	听	$	61	听	$	108

听

Schedule of components of income (loss) from continuing operations before income taxes

听	听	听	听	听	听	听	听	听	听
听	听	Year ended December听31,听
听	听	2018		听	2017		听	2016
U.S.	听听听听	$	147	听听听听	$	(46)	听听听听	$	92
Non-U.S.	听	听	777	听	听	686	听	听	383
Total	听	$	924	听	$	640	听	$	475

听

Schedule of components of deferred income tax assets and liabilities

听	听	听	听	听	听	听
听	听	December听31,听
听	听	2018		听	2017
Deferred income tax assets:	听听听听	听	听	听听听听	听	听
Net operating loss carryforwards	听	$	359	听	$	411
Pension and other employee compensation	听	听	198	听	听	205
Property, plant and equipment	听	听	20	听	听	29
Intangible assets	听	听	79	听	听	88
Unrealized currency gains	听	听	听鈥�	听	听	听8
Other, net	听	听	45	听	听	46
Total	听	$	701	听	$	787
Deferred income tax liabilities:	听	听	听	听	听	听
Property, plant and equipment	听	$	(363)	听	$	(351)
Pension and other employee compensation	听	听	听鈥�	听	听	(3)
Intangible assets	听	听	(34)	听	听	(7)
Unrealized currency losses	听	听	(37)	听	听	(27)
Other, net	听	听	(10)	听	听	(32)
Total	听	$	(444)	听	$	(420)
Net deferred tax asset before valuation allowance	听	$	257	听	$	367
Valuation allowance鈥攏et operating losses and other	听	听	(227)	听	听	(424)
Net deferred tax asset (liability)	听	$	30	听	$	(57)
Non-current deferred tax asset	听	听	324	听	听	208
Non-current deferred tax liability	听	听	(294)	听	听	(265)
Net deferred tax asset (liability)	听	$	30	听	$	(57)

听

Schedule of changes in valuation allowance

听	听	听	听	听	听	听	听	听	听
听	听听听听	2018		听听听听	2017		听听听听	2016
Valuation allowance as of January听1	听	$	424	听	$	499	听	$	530
Valuation allowance as of December听31	听	听	227	听	听	424	听	听	499
Net (increase) decrease	听	听	197	听	听	75	听	听	31
Foreign currency movements	听	听	听3	听	听	11	听	听	(11)
(Decrease) increase to deferred tax assets with no impact on operating tax expense, including an offsetting (decrease) increase to valuation allowances	听	听	(15)	听	听	(14)	听	听	19
Change in valuation allowance per rate reconciliation	听	$	185	听	$	72	听	$	39
Components of change in valuation allowance affecting tax expense:	听	听	听	听	听	听	听	听	听
Pre-tax income and losses in jurisdictions with valuation allowances resulting in no tax expense or benefit	听	$	53	听	$	49	听	$	32
Releases of valuation allowances in various jurisdictions	听	听	132	听	听	23	听	听	19
Establishments of valuation allowances in various jurisdictions	听	听	听鈥�	听	听	听鈥�	听	听	(12)
Change in valuation allowance per rate reconciliation	听	$	185	听	$	72	听	$	39

听