|
|
|
|
|
☑
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the quarterly period ended
|
|
June 30, 2020
|
|
Or
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
Delaware
|
98-0420726
|
(State or Other Jurisdiction of Incorporation or Organization)
|
(I.R.S. Employer Identification No.)
|
Title of Each Class
|
Trading Symbol(s)
|
Name of Each Exchange on Which Registered
|
Common Stock, par value $0.0001 per share
|
CE
|
The New York Stock Exchange
|
1.125% Senior Notes due 2023
|
CE /23
|
The New York Stock Exchange
|
1.250% Senior Notes due 2025
|
CE /25
|
The New York Stock Exchange
|
2.125% Senior Notes due 2027
|
CE /27
|
The New York Stock Exchange
|
|
|
|
|
|
|
|
Page
|
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
|
|
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||
|
(In $ millions, except share and per share data)
|
||||||||||
Net sales
|
1,193
|
|
|
1,592
|
|
|
2,653
|
|
|
3,279
|
|
Cost of sales
|
(951
|
)
|
|
(1,169
|
)
|
|
(2,063
|
)
|
|
(2,403
|
)
|
Gross profit
|
242
|
|
|
423
|
|
|
590
|
|
|
876
|
|
Selling, general and administrative expenses
|
(114
|
)
|
|
(118
|
)
|
|
(239
|
)
|
|
(238
|
)
|
Amortization of intangible assets
|
(6
|
)
|
|
(6
|
)
|
|
(11
|
)
|
|
(12
|
)
|
Research and development expenses
|
(18
|
)
|
|
(17
|
)
|
|
(35
|
)
|
|
(33
|
)
|
Other (charges) gains, net
|
(21
|
)
|
|
(98
|
)
|
|
(27
|
)
|
|
(94
|
)
|
Foreign exchange gain (loss), net
|
1
|
|
|
1
|
|
|
—
|
|
|
6
|
|
Gain (loss) on disposition of businesses and assets, net
|
(1
|
)
|
|
1
|
|
|
(1
|
)
|
|
1
|
|
Operating profit (loss)
|
83
|
|
|
186
|
|
|
277
|
|
|
506
|
|
Equity in net earnings (loss) of affiliates
|
31
|
|
|
39
|
|
|
88
|
|
|
89
|
|
Non-operating pension and other postretirement employee benefit (expense) income
|
27
|
|
|
17
|
|
|
55
|
|
|
34
|
|
Interest expense
|
(27
|
)
|
|
(29
|
)
|
|
(55
|
)
|
|
(60
|
)
|
Refinancing expense
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
Interest income
|
1
|
|
|
2
|
|
|
3
|
|
|
3
|
|
Dividend income - equity investments
|
32
|
|
|
30
|
|
|
69
|
|
|
62
|
|
Other income (expense), net
|
—
|
|
|
(2
|
)
|
|
2
|
|
|
(6
|
)
|
Earnings (loss) from continuing operations before tax
|
147
|
|
|
239
|
|
|
439
|
|
|
624
|
|
Income tax (provision) benefit
|
(35
|
)
|
|
(28
|
)
|
|
(100
|
)
|
|
(74
|
)
|
Earnings (loss) from continuing operations
|
112
|
|
|
211
|
|
|
339
|
|
|
550
|
|
Earnings (loss) from operation of discontinued operations
|
(4
|
)
|
|
(2
|
)
|
|
(11
|
)
|
|
(3
|
)
|
Income tax (provision) benefit from discontinued operations
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
Earnings (loss) from discontinued operations
|
(3
|
)
|
|
(1
|
)
|
|
(10
|
)
|
|
(2
|
)
|
Net earnings (loss)
|
109
|
|
|
210
|
|
|
329
|
|
|
548
|
|
Net (earnings) loss attributable to noncontrolling interests
|
(2
|
)
|
|
(1
|
)
|
|
(4
|
)
|
|
(2
|
)
|
Net earnings (loss) attributable to Celanese Corporation
|
107
|
|
|
209
|
|
|
325
|
|
|
546
|
|
Amounts attributable to Celanese Corporation
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing operations
|
110
|
|
|
210
|
|
|
335
|
|
|
548
|
|
Earnings (loss) from discontinued operations
|
(3
|
)
|
|
(1
|
)
|
|
(10
|
)
|
|
(2
|
)
|
Net earnings (loss)
|
107
|
|
|
209
|
|
|
325
|
|
|
546
|
|
Earnings (loss) per common share - basic
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
0.93
|
|
|
1.68
|
|
|
2.82
|
|
|
4.33
|
|
Discontinued operations
|
(0.03
|
)
|
|
(0.01
|
)
|
|
(0.08
|
)
|
|
(0.01
|
)
|
Net earnings (loss) - basic
|
0.90
|
|
|
1.67
|
|
|
2.74
|
|
|
4.32
|
|
Earnings (loss) per common share - diluted
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
0.93
|
|
|
1.67
|
|
|
2.81
|
|
|
4.31
|
|
Discontinued operations
|
(0.03
|
)
|
|
(0.01
|
)
|
|
(0.09
|
)
|
|
(0.01
|
)
|
Net earnings (loss) - diluted
|
0.90
|
|
|
1.66
|
|
|
2.72
|
|
|
4.30
|
|
Weighted average shares - basic
|
118,339,872
|
|
|
125,289,967
|
|
|
118,795,780
|
|
|
126,409,926
|
|
Weighted average shares - diluted
|
118,767,633
|
|
|
125,847,894
|
|
|
119,377,515
|
|
|
127,111,046
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||
|
(In $ millions)
|
||||||||||
Net earnings (loss)
|
109
|
|
|
210
|
|
|
329
|
|
|
548
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation gain (loss)
|
(6
|
)
|
|
(11
|
)
|
|
(8
|
)
|
|
(4
|
)
|
Gain (loss) on cash flow hedges
|
1
|
|
|
(13
|
)
|
|
(38
|
)
|
|
(16
|
)
|
Total other comprehensive income (loss), net of tax
|
(5
|
)
|
|
(24
|
)
|
|
(46
|
)
|
|
(20
|
)
|
Total comprehensive income (loss), net of tax
|
104
|
|
|
186
|
|
|
283
|
|
|
528
|
|
Comprehensive (income) loss attributable to noncontrolling interests
|
(2
|
)
|
|
(1
|
)
|
|
(4
|
)
|
|
(2
|
)
|
Comprehensive income (loss) attributable to Celanese Corporation
|
102
|
|
|
185
|
|
|
279
|
|
|
526
|
|
|
Three Months Ended June 30,
|
||||||||||
|
2020
|
|
2019
|
||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
||||
|
(In $ millions, except share data)
|
||||||||||
Common Stock
|
|
|
|
|
|
|
|
||||
Balance as of the beginning of the period
|
118,228,898
|
|
|
—
|
|
|
126,612,492
|
|
|
—
|
|
Stock option exercises
|
—
|
|
|
—
|
|
|
4,108
|
|
|
—
|
|
Purchases of treasury stock
|
—
|
|
|
—
|
|
|
(2,917,864
|
)
|
|
—
|
|
Stock awards
|
59,398
|
|
|
—
|
|
|
41,613
|
|
|
—
|
|
Balance as of the end of the period
|
118,288,296
|
|
|
—
|
|
|
123,740,349
|
|
|
—
|
|
Treasury Stock
|
|
|
|
|
|
|
|
||||
Balance as of the beginning of the period
|
51,127,396
|
|
|
(3,996
|
)
|
|
42,285,459
|
|
|
(3,048
|
)
|
Purchases of treasury stock, including related fees
|
—
|
|
|
—
|
|
|
2,917,864
|
|
|
(300
|
)
|
Issuance of treasury stock under stock plans
|
(44,370
|
)
|
|
1
|
|
|
(32,841
|
)
|
|
1
|
|
Balance as of the end of the period
|
51,083,026
|
|
|
(3,995
|
)
|
|
45,170,482
|
|
|
(3,347
|
)
|
Additional Paid-In Capital
|
|
|
|
|
|
|
|
||||
Balance as of the beginning of the period
|
|
|
242
|
|
|
|
|
224
|
|
||
Stock-based compensation, net of tax
|
|
|
10
|
|
|
|
|
9
|
|
||
Balance as of the end of the period
|
|
|
252
|
|
|
|
|
233
|
|
||
Retained Earnings
|
|
|
|
|
|
|
|
||||
Balance as of the beginning of the period
|
|
|
6,543
|
|
|
|
|
6,114
|
|
||
Net earnings (loss) attributable to Celanese Corporation
|
|
|
107
|
|
|
|
|
209
|
|
||
Common stock dividends
|
|
|
(74
|
)
|
|
|
|
(78
|
)
|
||
Balance as of the end of the period
|
|
|
6,576
|
|
|
|
|
6,245
|
|
||
Accumulated Other Comprehensive Income (Loss), Net
|
|
|
|
|
|
|
|
||||
Balance as of the beginning of the period
|
|
|
(341
|
)
|
|
|
|
(243
|
)
|
||
Other comprehensive income (loss), net of tax
|
|
|
(5
|
)
|
|
|
|
(24
|
)
|
||
Balance as of the end of the period
|
|
|
(346
|
)
|
|
|
|
(267
|
)
|
||
Total Celanese Corporation stockholders' equity
|
|
|
2,487
|
|
|
|
|
2,864
|
|
||
Noncontrolling Interests
|
|
|
|
|
|
|
|
||||
Balance as of the beginning of the period
|
|
|
388
|
|
|
|
|
392
|
|
||
Net earnings (loss) attributable to noncontrolling interests
|
|
|
2
|
|
|
|
|
1
|
|
||
Distributions to noncontrolling interests
|
|
|
(8
|
)
|
|
|
|
(3
|
)
|
||
Balance as of the end of the period
|
|
|
382
|
|
|
|
|
390
|
|
||
Total equity
|
|
|
2,869
|
|
|
|
|
3,254
|
|
|
Six Months Ended June 30,
|
||||||||||
|
2020
|
|
2019
|
||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
||||
|
(In $ millions, except share data)
|
||||||||||
Common Stock
|
|
|
|
|
|
|
|
||||
Balance as of the beginning of the period
|
119,555,207
|
|
|
—
|
|
|
128,095,849
|
|
|
—
|
|
Stock option exercises
|
—
|
|
|
—
|
|
|
14,045
|
|
|
—
|
|
Purchases of treasury stock
|
(1,709,431
|
)
|
|
—
|
|
|
(4,890,155
|
)
|
|
—
|
|
Stock awards
|
442,520
|
|
|
—
|
|
|
520,610
|
|
|
—
|
|
Balance as of the end of the period
|
118,288,296
|
|
|
—
|
|
|
123,740,349
|
|
|
—
|
|
Treasury Stock
|
|
|
|
|
|
|
|
||||
Balance as of the beginning of the period
|
49,417,965
|
|
|
(3,846
|
)
|
|
40,323,105
|
|
|
(2,849
|
)
|
Purchases of treasury stock, including related fees
|
1,709,431
|
|
|
(150
|
)
|
|
4,890,155
|
|
|
(500
|
)
|
Issuance of treasury stock under stock plans
|
(44,370
|
)
|
|
1
|
|
|
(42,778
|
)
|
|
2
|
|
Balance as of the end of the period
|
51,083,026
|
|
|
(3,995
|
)
|
|
45,170,482
|
|
|
(3,347
|
)
|
Additional Paid-In Capital
|
|
|
|
|
|
|
|
||||
Balance as of the beginning of the period
|
|
|
254
|
|
|
|
|
233
|
|
||
Stock-based compensation, net of tax
|
|
|
(2
|
)
|
|
|
|
1
|
|
||
Stock option exercises, net of tax
|
|
|
—
|
|
|
|
|
(1
|
)
|
||
Balance as of the end of the period
|
|
|
252
|
|
|
|
|
233
|
|
||
Retained Earnings
|
|
|
|
|
|
|
|
||||
Balance as of the beginning of the period
|
|
|
6,399
|
|
|
|
|
5,847
|
|
||
Net earnings (loss) attributable to Celanese Corporation
|
|
|
325
|
|
|
|
|
546
|
|
||
Common stock dividends
|
|
|
(148
|
)
|
|
|
|
(148
|
)
|
||
Balance as of the end of the period
|
|
|
6,576
|
|
|
|
|
6,245
|
|
||
Accumulated Other Comprehensive Income (Loss), Net
|
|
|
|
|
|
|
|
||||
Balance as of the beginning of the period
|
|
|
(300
|
)
|
|
|
|
(247
|
)
|
||
Other comprehensive income (loss), net of tax
|
|
|
(46
|
)
|
|
|
|
(20
|
)
|
||
Balance as of the end of the period
|
|
|
(346
|
)
|
|
|
|
(267
|
)
|
||
Total Celanese Corporation stockholders' equity
|
|
|
2,487
|
|
|
|
|
2,864
|
|
||
Noncontrolling Interests
|
|
|
|
|
|
|
|
||||
Balance as of the beginning of the period
|
|
|
391
|
|
|
|
|
395
|
|
||
Net earnings (loss) attributable to noncontrolling interests
|
|
|
4
|
|
|
|
|
2
|
|
||
Distributions to noncontrolling interests
|
|
|
(13
|
)
|
|
|
|
(7
|
)
|
||
Balance as of the end of the period
|
|
|
382
|
|
|
|
|
390
|
|
||
Total equity
|
|
|
2,869
|
|
|
|
|
3,254
|
|
|
Six Months Ended
June 30, |
||||
|
2020
|
|
2019
|
||
|
(In $ millions)
|
||||
Operating Activities
|
|
|
|
||
Net earnings (loss)
|
329
|
|
|
548
|
|
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities
|
|
|
|
||
Asset impairments
|
29
|
|
|
83
|
|
Depreciation, amortization and accretion
|
175
|
|
|
170
|
|
Pension and postretirement net periodic benefit cost
|
(49
|
)
|
|
(30
|
)
|
Pension and postretirement contributions
|
(23
|
)
|
|
(24
|
)
|
Deferred income taxes, net
|
(15
|
)
|
|
(17
|
)
|
(Gain) loss on disposition of businesses and assets, net
|
1
|
|
|
1
|
|
Stock-based compensation
|
20
|
|
|
27
|
|
Undistributed earnings in unconsolidated affiliates
|
17
|
|
|
22
|
|
Other, net
|
10
|
|
|
13
|
|
Operating cash provided by (used in) discontinued operations
|
6
|
|
|
—
|
|
Changes in operating assets and liabilities
|
|
|
|
||
Trade receivables - third party and affiliates, net
|
167
|
|
|
52
|
|
Inventories
|
27
|
|
|
39
|
|
Other assets
|
84
|
|
|
(21
|
)
|
Trade payables - third party and affiliates
|
(150
|
)
|
|
(51
|
)
|
Other liabilities
|
10
|
|
|
(81
|
)
|
Net cash provided by (used in) operating activities
|
638
|
|
|
731
|
|
Investing Activities
|
|
|
|
||
Capital expenditures on property, plant and equipment
|
(207
|
)
|
|
(144
|
)
|
Acquisitions, net of cash acquired
|
(88
|
)
|
|
(91
|
)
|
Proceeds from sale of businesses and assets, net
|
3
|
|
|
—
|
|
Other, net
|
(17
|
)
|
|
(8
|
)
|
Net cash provided by (used in) investing activities
|
(309
|
)
|
|
(243
|
)
|
Financing Activities
|
|
|
|
||
Net change in short-term borrowings with maturities of 3 months or less
|
(136
|
)
|
|
105
|
|
Proceeds from short-term borrowings
|
306
|
|
|
—
|
|
Repayments of short-term borrowings
|
(50
|
)
|
|
(12
|
)
|
Proceeds from long-term debt
|
—
|
|
|
499
|
|
Repayments of long-term debt
|
(16
|
)
|
|
(348
|
)
|
Purchases of treasury stock, including related fees
|
(167
|
)
|
|
(488
|
)
|
Common stock dividends
|
(148
|
)
|
|
(148
|
)
|
Distributions to noncontrolling interests
|
(13
|
)
|
|
(7
|
)
|
Other, net
|
(24
|
)
|
|
(38
|
)
|
Net cash provided by (used in) financing activities
|
(248
|
)
|
|
(437
|
)
|
Exchange rate effects on cash and cash equivalents
|
(5
|
)
|
|
1
|
|
Net increase (decrease) in cash and cash equivalents
|
76
|
|
|
52
|
|
Cash and cash equivalents as of beginning of period
|
463
|
|
|
439
|
|
Cash and cash equivalents as of end of period
|
539
|
|
|
491
|
|
Standard
|
|
Description
|
|
Effective Date
|
|
Effect on the Financial Statements or Other Significant Matters
|
|
|
|
|
|
|
|
In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting.
|
|
The new guidance provides optional expedients and exceptions for applying US GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The guidance applies only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform.
|
|
March 12, 2020 through December 31, 2022.
|
|
The Company is currently evaluating the impact of adoption on its financial statements and related disclosures.
|
|
|
|
|
|
|
|
In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes.
|
|
The new guidance simplifies the accounting for income taxes by removing certain exceptions to the general principles in FASB Accounting Standards Codification Topic 740, Income Taxes ("Topic 740"). The guidance also clarifies and amends existing guidance under Topic 740.
|
|
January 1, 2021. Early adoption is permitted.
|
|
The Company has completed its assessment and will adopt the new guidance effective January 1, 2021. The adoption of the new guidance will not have a material impact to the Company.
|
|
|
|
|
|
|
|
|
As of
June 30, 2020 |
|
As of
December 31, 2019 |
||
|
(In $ millions)
|
||||
Cash and cash equivalents
|
33
|
|
|
57
|
|
Trade receivables, net - third party and affiliates
|
10
|
|
|
12
|
|
Non-trade receivables, net
|
2
|
|
|
—
|
|
Property, plant and equipment (net of accumulated depreciation - 2020: $191; 2019: $174)
|
612
|
|
|
622
|
|
Other assets
|
15
|
|
|
9
|
|
Intangible assets (net of accumulated amortization - 2020: $4; 2019: $4)
|
22
|
|
|
22
|
|
Total assets(1)
|
694
|
|
|
722
|
|
|
|
|
|
||
Trade payables
|
11
|
|
|
24
|
|
Other liabilities(2)
|
10
|
|
|
5
|
|
Total debt
|
3
|
|
|
4
|
|
Deferred income taxes
|
4
|
|
|
4
|
|
Total liabilities
|
28
|
|
|
37
|
|
(1)
|
Joint venture assets can only be used to settle the obligations of Fairway.
|
(2)
|
Primarily represents amounts owed by Fairway to the Company for reimbursement of expenditures.
|
|
As of
June 30, 2020 |
|
As of
December 31, 2019 |
||
|
(In $ millions)
|
||||
Property, plant and equipment, net
|
25
|
|
|
31
|
|
|
|
|
|
||
Trade payables
|
22
|
|
|
30
|
|
Current installments of long-term debt
|
17
|
|
|
16
|
|
Long-term debt
|
33
|
|
|
41
|
|
Total liabilities
|
72
|
|
|
87
|
|
|
|
|
|
||
Maximum exposure to loss
|
93
|
|
|
113
|
|
|
As of
June 30, 2020 |
|
As of
December 31, 2019 |
||
|
(In $ millions)
|
||||
Finished goods
|
713
|
|
|
718
|
|
Work-in-process
|
67
|
|
|
76
|
|
Raw materials and supplies
|
251
|
|
|
244
|
|
Total
|
1,031
|
|
|
1,038
|
|
|
Engineered
Materials
|
|
Acetate Tow
|
|
Acetyl Chain
|
|
Total
|
||||
|
(In $ millions)
|
||||||||||
As of December 31, 2019
|
727
|
|
|
148
|
|
|
199
|
|
|
1,074
|
|
Acquisitions
|
—
|
|
|
—
|
|
|
28
|
|
(1)
|
28
|
|
Exchange rate changes
|
(3
|
)
|
|
(1
|
)
|
|
—
|
|
|
(4
|
)
|
As of June 30, 2020(2)
|
724
|
|
|
147
|
|
|
227
|
|
|
1,098
|
|
(1)
|
Represents goodwill related to the acquisition of Nouryon's redispersible polymer powders business offered under the Elotex® brand ("Elotex").
|
(2)
|
There were $0 million of accumulated impairment losses as of June 30, 2020.
|
|
Licenses
|
|
Customer-
Related
Intangible
Assets
|
|
Developed
Technology
|
|
Covenants
Not to
Compete
and Other
|
|
Total
|
|||||
|
(In $ millions)
|
|||||||||||||
Gross Asset Value
|
|
|
|
|
|
|
|
|
|
|||||
As of December 31, 2019
|
42
|
|
|
667
|
|
|
44
|
|
|
56
|
|
|
809
|
|
Acquisitions
|
—
|
|
|
16
|
|
(1)
|
—
|
|
|
—
|
|
|
16
|
|
Exchange rate changes
|
(1
|
)
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
As of June 30, 2020
|
41
|
|
|
680
|
|
|
44
|
|
|
56
|
|
|
821
|
|
Accumulated Amortization
|
|
|
|
|
|
|
|
|
|
|||||
As of December 31, 2019
|
(35
|
)
|
|
(504
|
)
|
|
(35
|
)
|
|
(38
|
)
|
|
(612
|
)
|
Amortization
|
(1
|
)
|
|
(8
|
)
|
|
(2
|
)
|
|
—
|
|
|
(11
|
)
|
Exchange rate changes
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
2
|
|
As of June 30, 2020
|
(35
|
)
|
|
(511
|
)
|
|
(37
|
)
|
|
(38
|
)
|
|
(621
|
)
|
Net book value
|
6
|
|
|
169
|
|
|
7
|
|
|
18
|
|
|
200
|
|
(1)
|
Related to acquired Elotex finite-lived intangible assets, with a weighted average amortization period of 14 years.
|
|
Trademarks
and Trade Names
|
|
|
|
(In $ millions)
|
|
|
As of December 31, 2019
|
115
|
|
|
Acquisitions
|
2
|
|
(1)
|
As of June 30, 2020
|
117
|
|
|
(1)
|
Related to acquired Elotex indefinite-lived intangible assets.
|
|
As of
June 30, 2020 |
|
As of
December 31, 2019 |
||
|
(In $ millions)
|
||||
Asset retirement obligations
|
3
|
|
|
6
|
|
28
|
|
|
28
|
|
|
Customer rebates
|
37
|
|
|
63
|
|
97
|
|
|
8
|
|
|
19
|
|
|
12
|
|
|
Insurance
|
4
|
|
|
6
|
|
Interest
|
26
|
|
|
29
|
|
98
|
|
|
105
|
|
|
Operating leases
|
29
|
|
|
29
|
|
10
|
|
|
13
|
|
|
Salaries and benefits
|
90
|
|
|
89
|
|
Sales and use tax/foreign withholding tax payable
|
98
|
|
|
35
|
|
Other
|
33
|
|
|
38
|
|
Total
|
572
|
|
|
461
|
|
|
As of
June 30, 2020 |
|
As of
December 31, 2019 |
||
|
(In $ millions)
|
||||
Asset retirement obligations
|
15
|
|
|
13
|
|
Deferred proceeds
|
43
|
|
|
43
|
|
6
|
|
|
6
|
|
|
3
|
|
|
50
|
|
|
48
|
|
|
49
|
|
|
Insurance
|
39
|
|
|
34
|
|
Other
|
25
|
|
|
28
|
|
Total
|
179
|
|
|
223
|
|
|
As of
June 30, 2020 |
|
As of
December 31, 2019 |
||
|
(In $ millions)
|
||||
Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates
|
|
|
|
||
Current installments of long-term debt
|
427
|
|
|
28
|
|
Short-term borrowings, including amounts due to affiliates(1)
|
377
|
|
|
81
|
|
Revolving credit facility(2)
|
154
|
|
|
272
|
|
Accounts receivable securitization facility(3)
|
87
|
|
|
115
|
|
Total
|
1,045
|
|
|
496
|
|
(1)
|
The weighted average interest rate was 1.2% and 2.3% as of June 30, 2020 and December 31, 2019, respectively. During the six months ended June 30, 2020, the Company entered into an aggregate of $300 million in short-term, bilateral term loans.
|
(2)
|
The weighted average interest rate was 1.5% and 1.6% as of June 30, 2020 and December 31, 2019, respectively.
|
(3)
|
The weighted average interest rate was 0.9% and 2.4% as of June 30, 2020 and December 31, 2019, respectively.
|
|
As of
June 30, 2020 |
|
As of
December 31, 2019 |
||
|
(In $ millions)
|
||||
Long-Term Debt
|
|
|
|
||
Senior unsecured notes due 2021, interest rate of 5.875%
|
400
|
|
|
400
|
|
Senior unsecured notes due 2022, interest rate of 4.625%
|
500
|
|
|
500
|
|
Senior unsecured notes due 2023, interest rate of 1.125%
|
839
|
|
|
841
|
|
Senior unsecured notes due 2024, interest rate of 3.500%
|
499
|
|
|
499
|
|
Senior unsecured notes due 2025, interest rate of 1.250%
|
336
|
|
|
337
|
|
Senior unsecured notes due 2027, interest rate of 2.125%
|
556
|
|
|
558
|
|
Pollution control and industrial revenue bonds due at various dates through 2030, interest rates ranging from 4.05% to 5.00%
|
167
|
|
|
167
|
|
Bank loans due at various dates through 2026(1)
|
8
|
|
|
9
|
|
Obligations under finance leases due at various dates through 2054
|
128
|
|
|
144
|
|
Subtotal
|
3,433
|
|
|
3,455
|
|
Unamortized debt issuance costs(2)
|
(17
|
)
|
|
(18
|
)
|
Current installments of long-term debt
|
(427
|
)
|
|
(28
|
)
|
Total
|
2,989
|
|
|
3,409
|
|
(1)
|
The weighted average interest rate was 1.3% and 1.3% as of June 30, 2020 and December 31, 2019, respectively.
|
(2)
|
Related to the Company's long-term debt, excluding obligations under finance leases.
|
|
As of
June 30, 2020 |
|
|
(In $ millions)
|
|
Revolving Credit Facility
|
|
|
Borrowings outstanding(1)
|
154
|
|
Available for borrowing(2)
|
1,096
|
|
(1)
|
The Company borrowed $385 million and repaid $503 million under its senior unsecured revolving credit facility during the six months ended June 30, 2020.
|
(2)
|
The margin for borrowings under the senior unsecured revolving credit facility was 1.5% above LIBOR or EURIBOR at current Company credit ratings.
|
|
As of
June 30, 2020 |
|
|
(In $ millions)
|
|
Accounts Receivable Securitization Facility
|
|
|
Borrowings outstanding(1)
|
87
|
|
Available for borrowing
|
5
|
|
Total borrowing base
|
92
|
|
|
|
|
Maximum borrowing base(2)
|
120
|
|
(1)
|
The Company repaid $28 million under its US accounts receivable securitization facility during the six months ended June 30, 2020.
|
(2)
|
Outstanding accounts receivable transferred to the SPE was $117 million.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||||||||||
|
Pension
Benefits |
|
Post-retirement
Benefits |
|
Pension
Benefits |
|
Post-retirement
Benefits |
|
Pension
Benefits |
|
Post-retirement
Benefits |
|
Pension
Benefits |
|
Post-retirement
Benefits |
||||||||
|
(In $ millions)
|
||||||||||||||||||||||
Service cost
|
3
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
4
|
|
|
—
|
|
Interest cost
|
21
|
|
|
—
|
|
|
29
|
|
|
1
|
|
|
42
|
|
|
1
|
|
|
58
|
|
|
1
|
|
Expected return on plan assets
|
(49
|
)
|
|
—
|
|
|
(47
|
)
|
|
—
|
|
|
(99
|
)
|
|
—
|
|
|
(93
|
)
|
|
—
|
|
Special termination benefit
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total
|
(24
|
)
|
|
—
|
|
|
(16
|
)
|
|
1
|
|
|
(50
|
)
|
|
1
|
|
|
(31
|
)
|
|
1
|
|
|
As of
June 30, 2020 |
|
Total
Expected
2020
|
||
|
(In $ millions)
|
||||
Cash contributions to defined benefit pension plans
|
11
|
|
|
23
|
|
Benefit payments to nonqualified pension plans
|
10
|
|
|
20
|
|
Benefit payments to other postretirement benefit plans
|
2
|
|
|
5
|
|
Cash contributions to German multiemployer defined benefit pension plans(1)
|
4
|
|
|
8
|
|
(1)
|
The Company makes contributions based on specified percentages of employee contributions.
|
|
Increase
|
|
Quarterly Common
Stock Cash Dividend
|
|
Annual Common
Stock Cash Dividend
|
|
Effective Date
|
|
(In percentages)
|
|
(In $ per share)
|
|
|
||
April 2019
|
15
|
|
0.62
|
|
2.48
|
|
May 2019
|
April 2020
|
—
|
|
0.62
|
|
2.48
|
|
May 2020
|
|
Six Months Ended
June 30, |
|
Total From
February 2008 Through June 30, 2020 |
||||||||
|
2020
|
|
2019
|
|
|||||||
Shares repurchased
|
1,709,431
|
|
|
4,890,155
|
|
|
58,588,409
|
|
|||
Average purchase price per share
|
$
|
87.87
|
|
|
$
|
102.25
|
|
|
$
|
73.44
|
|
Shares repurchased (in $ millions)
|
$
|
150
|
|
|
$
|
500
|
|
|
$
|
4,303
|
|
Aggregate Board of Directors repurchase authorizations during the period (in $ millions)
|
$
|
—
|
|
|
$
|
1,500
|
|
|
$
|
5,366
|
|
|
Three Months Ended June 30,
|
||||||||||||||||
|
2020
|
|
2019
|
||||||||||||||
|
Gross
Amount
|
|
Income
Tax
(Provision)
Benefit
|
|
Net
Amount
|
|
Gross
Amount
|
|
Income
Tax
(Provision)
Benefit
|
|
Net
Amount |
||||||
|
(In $ millions)
|
||||||||||||||||
Foreign currency translation gain (loss)
|
(10
|
)
|
|
4
|
|
|
(6
|
)
|
|
(12
|
)
|
|
1
|
|
|
(11
|
)
|
Gain (loss) on cash flow hedges
|
1
|
|
|
—
|
|
|
1
|
|
|
(19
|
)
|
|
6
|
|
|
(13
|
)
|
Total
|
(9
|
)
|
|
4
|
|
|
(5
|
)
|
|
(31
|
)
|
|
7
|
|
|
(24
|
)
|
|
Six Months Ended June 30,
|
||||||||||||||||
|
2020
|
|
2019
|
||||||||||||||
|
Gross
Amount |
|
Income
Tax (Provision) Benefit |
|
Net
Amount |
|
Gross
Amount |
|
Income
Tax (Provision) Benefit |
|
Net
Amount |
||||||
|
(In $ millions)
|
||||||||||||||||
Foreign currency translation gain (loss)
|
—
|
|
|
(8
|
)
|
|
(8
|
)
|
|
1
|
|
|
(5
|
)
|
|
(4
|
)
|
Gain (loss) on cash flow hedges
|
(50
|
)
|
|
12
|
|
|
(38
|
)
|
|
(22
|
)
|
|
6
|
|
|
(16
|
)
|
Total
|
(50
|
)
|
|
4
|
|
|
(46
|
)
|
|
(21
|
)
|
|
1
|
|
|
(20
|
)
|
|
Foreign
Currency
Translation Gain (Loss)
|
|
Gain (Loss)
on Cash
Flow
Hedges
|
|
Pension
and
Postretirement
Benefits Gain (Loss)
|
|
Accumulated
Other
Comprehensive
Income
(Loss), Net
|
||||
|
(In $ millions)
|
||||||||||
As of December 31, 2019
|
(252
|
)
|
|
(38
|
)
|
|
(10
|
)
|
|
(300
|
)
|
Other comprehensive income (loss) before reclassifications
|
—
|
|
|
(50
|
)
|
|
—
|
|
|
(50
|
)
|
Income tax (provision) benefit
|
(8
|
)
|
|
12
|
|
|
—
|
|
|
4
|
|
As of June 30, 2020
|
(260
|
)
|
|
(76
|
)
|
|
(10
|
)
|
|
(346
|
)
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||
|
(In $ millions)
|
||||||||||
Restructuring
|
(2
|
)
|
|
(15
|
)
|
|
(8
|
)
|
|
(14
|
)
|
Asset impairments
|
(25
|
)
|
|
(83
|
)
|
|
(29
|
)
|
|
(83
|
)
|
Plant/office closures
|
6
|
|
|
—
|
|
|
5
|
|
|
(1
|
)
|
Commercial disputes
|
1
|
|
|
—
|
|
|
6
|
|
|
4
|
|
European Commission investigation
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
Other
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
Total
|
(21
|
)
|
|
(98
|
)
|
|
(27
|
)
|
|
(94
|
)
|
|
Engineered
Materials
|
|
Acetate Tow
|
|
Acetyl Chain
|
|
Other
|
|
Total
|
|||||
|
(In $ millions)
|
|||||||||||||
Employee Termination Benefits
|
|
|
|
|
|
|
|
|
|
|||||
As of December 31, 2019
|
5
|
|
|
3
|
|
|
—
|
|
|
5
|
|
|
13
|
|
Additions
|
3
|
|
|
—
|
|
|
1
|
|
|
7
|
|
|
11
|
|
Cash payments
|
(3
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
(5
|
)
|
|
(11
|
)
|
Other changes
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(3
|
)
|
As of June 30, 2020
|
3
|
|
|
1
|
|
|
—
|
|
|
6
|
|
|
10
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(In percentages)
|
||||||
Effective income tax rate
|
24
|
|
12
|
|
23
|
|
12
|
|
As of
June 30, 2020 |
|
As of
December 31, 2019 |
||
|
(In € millions)
|
||||
Total
|
1,478
|
|
|
1,578
|
|
|
As of
June 30, 2020 |
|
As of
December 31, 2019 |
||
|
(In $ millions)
|
||||
Total
|
400
|
|
|
400
|
|
|
As of
June 30, 2020 |
|
As of
December 31, 2019 |
||
|
(In $ millions)
|
||||
Total
|
627
|
|
|
692
|
|
|
Gain (Loss) Recognized in Other Comprehensive Income (Loss)
|
|
Gain (Loss) Recognized in Earnings (Loss)
|
|
|
||||||||
|
Three Months Ended June 30,
|
|
Statement of Operations Classification
|
||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|||||
|
(In $ millions)
|
|
|
||||||||||
Designated as Cash Flow Hedges
|
|
|
|
|
|
|
|
|
|
||||
Commodity swaps
|
3
|
|
|
(2
|
)
|
|
—
|
|
|
2
|
|
|
Cost of sales
|
Interest rate swaps
|
(2
|
)
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
Interest expense
|
Total
|
1
|
|
|
(17
|
)
|
|
—
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Designated as Net Investment Hedges
|
|
|
|
|
|
|
|
|
|
||||
(22
|
)
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
N/A
|
|
Cross-currency swaps
|
(8
|
)
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
N/A
|
Total
|
(30
|
)
|
|
(19
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Not Designated as Hedges
|
|
|
|
|
|
|
|
|
|
||||
Foreign currency forwards and swaps
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
3
|
|
|
Foreign exchange gain (loss), net; Other income (expense), net
|
Total
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
3
|
|
|
|
|
As of
June 30, 2020 |
|
As of
December 31, 2019 |
||
|
(In $ millions)
|
||||
Derivative Assets
|
|
|
|
||
Gross amount recognized
|
39
|
|
|
16
|
|
Gross amount offset in the consolidated balance sheets
|
5
|
|
|
1
|
|
Net amount presented in the consolidated balance sheets
|
34
|
|
|
15
|
|
Gross amount not offset in the consolidated balance sheets
|
1
|
|
|
8
|
|
Net amount
|
33
|
|
|
7
|
|
|
As of
June 30, 2020 |
|
As of
December 31, 2019 |
||
|
(In $ millions)
|
||||
Derivative Liabilities
|
|
|
|
||
Gross amount recognized
|
105
|
|
|
59
|
|
Gross amount offset in the consolidated balance sheets
|
5
|
|
|
1
|
|
Net amount presented in the consolidated balance sheets
|
100
|
|
|
58
|
|
Gross amount not offset in the consolidated balance sheets
|
1
|
|
|
8
|
|
Net amount
|
99
|
|
|
50
|
|
|
Fair Value Measurement
|
|
|
|||||||
|
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Total
|
|
Balance Sheet Classification
|
|||
|
(In $ millions)
|
|
|
|||||||
As of June 30, 2020
|
|
|
|
|
|
|
|
|||
Derivatives Designated as Cash Flow Hedges
|
|
|
|
|
|
|
|
|||
Commodity swaps
|
—
|
|
|
1
|
|
|
1
|
|
|
Current Other assets
|
Designated as Net Investment Hedges
|
|
|
|
|
|
|
|
|||
Cross-currency swaps
|
—
|
|
|
13
|
|
|
13
|
|
|
Current Other assets
|
Cross-currency swaps
|
—
|
|
|
15
|
|
|
15
|
|
|
Noncurrent Other assets
|
Derivatives Not Designated as Hedges
|
|
|
|
|
|
|
|
|
||
Foreign currency forwards and swaps
|
—
|
|
|
5
|
|
|
5
|
|
|
Current Other assets
|
Total assets
|
—
|
|
|
34
|
|
|
34
|
|
|
|
Derivatives Designated as Cash Flow Hedges
|
|
|
|
|
|
|
|
|||
Interest rate swaps
|
—
|
|
|
(93
|
)
|
|
(93
|
)
|
|
Current Other liabilities
|
Commodity swaps
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
Current Other liabilities
|
Commodity swaps
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
|
Noncurrent Other liabilities
|
Derivatives Designated as Net Investment Hedges
|
|
|
|
|
|
|
|
|||
Cross-currency swaps
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
Current Other liabilities
|
Derivatives Not Designated as Hedges
|
|
|
|
|
|
|
|
|||
Foreign currency forwards and swaps
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|
Current Other liabilities
|
Total liabilities
|
—
|
|
|
(100
|
)
|
|
(100
|
)
|
|
|
|
Fair Value Measurement
|
|
|
|||||||
|
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Total
|
|
Balance Sheet Classification
|
|||
|
(In $ millions)
|
|
|
|||||||
As of December 31, 2019
|
|
|
|
|
|
|
|
|||
Derivatives Designated as Net Investment Hedges
|
|
|
|
|
|
|
|
|||
Cross-currency swaps
|
—
|
|
|
13
|
|
|
13
|
|
|
Current Other assets
|
Derivatives Not Designated as Hedges
|
|
|
|
|
|
|
|
|||
Foreign currency forwards and swaps
|
—
|
|
|
2
|
|
|
2
|
|
|
Current Other assets
|
Total assets
|
—
|
|
|
15
|
|
|
15
|
|
|
|
Derivatives Designated as Cash Flow Hedges
|
|
|
|
|
|
|
|
|||
Interest rate swaps
|
—
|
|
|
(40
|
)
|
|
(40
|
)
|
|
Noncurrent Other liabilities
|
Commodity swaps
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
|
Current Other liabilities
|
Commodity swaps
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
|
Noncurrent Other liabilities
|
Derivatives Designated as Net Investment Hedges
|
|
|
|
|
|
|
|
|||
Cross-currency swaps
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
Current Other liabilities
|
Cross-currency swaps
|
—
|
|
|
(7
|
)
|
|
(7
|
)
|
|
Noncurrent Other liabilities
|
Derivatives Not Designated as Hedges
|
|
|
|
|
|
|
|
|||
Foreign currency forwards and swaps
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
|
Current Other liabilities
|
Total liabilities
|
—
|
|
|
(58
|
)
|
|
(58
|
)
|
|
|
|
|
|
Fair Value Measurement
|
||||||||
|
Carrying
Amount
|
|
Significant Other
Observable
Inputs
(Level 2)
|
|
Unobservable
Inputs
(Level 3)
|
|
Total
|
||||
|
(In $ millions)
|
||||||||||
As of June 30, 2020
|
|
|
|
|
|
|
|
||||
Equity investments without readily determinable fair values
|
170
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Insurance contracts in nonqualified trusts
|
36
|
|
|
36
|
|
|
—
|
|
|
36
|
|
Long-term debt, including current installments of long-term debt
|
3,433
|
|
|
3,380
|
|
|
128
|
|
|
3,508
|
|
As of December 31, 2019
|
|
|
|
|
|
|
|
||||
Equity investments without readily determinable fair values
|
170
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Insurance contracts in nonqualified trusts
|
35
|
|
|
35
|
|
|
—
|
|
|
35
|
|
Long-term debt, including current installments of long-term debt
|
3,455
|
|
|
3,456
|
|
|
144
|
|
|
3,600
|
|
•
|
Demerger Obligations
|
•
|
Divestiture Obligations
|
|
Engineered
Materials
|
|
Acetate Tow
|
|
Acetyl
Chain
|
|
Other
Activities
|
|
Eliminations
|
|
Consolidated
|
|
||||||
|
(In $ millions)
|
|
||||||||||||||||
|
Three Months Ended June 30, 2020
|
|
||||||||||||||||
Net sales
|
420
|
|
|
127
|
|
|
662
|
|
|
—
|
|
|
(16
|
)
|
(1)
|
1,193
|
|
|
(25
|
)
|
|
—
|
|
|
5
|
|
|
(1
|
)
|
|
—
|
|
|
(21
|
)
|
|
|
Operating profit (loss)
|
(13
|
)
|
|
31
|
|
|
121
|
|
|
(56
|
)
|
|
—
|
|
|
83
|
|
|
Equity in net earnings (loss) of affiliates
|
26
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
31
|
|
|
Depreciation and amortization
|
32
|
|
|
9
|
|
|
42
|
|
|
4
|
|
|
—
|
|
|
87
|
|
|
Capital expenditures
|
28
|
|
|
6
|
|
|
38
|
|
|
8
|
|
|
—
|
|
|
80
|
|
(2)
|
|
Three Months Ended June 30, 2019
|
|
||||||||||||||||
Net sales
|
593
|
|
|
164
|
|
|
865
|
|
|
—
|
|
|
(30
|
)
|
(1)
|
1,592
|
|
|
(8
|
)
|
|
(84
|
)
|
|
(1
|
)
|
|
(5
|
)
|
|
—
|
|
|
(98
|
)
|
|
|
Operating profit (loss)
|
103
|
|
|
(44
|
)
|
|
188
|
|
|
(61
|
)
|
|
—
|
|
|
186
|
|
|
Equity in net earnings (loss) of affiliates
|
36
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
39
|
|
|
Depreciation and amortization
|
31
|
|
|
11
|
|
|
38
|
|
|
4
|
|
|
—
|
|
|
84
|
|
|
Capital expenditures
|
21
|
|
|
11
|
|
|
35
|
|
|
7
|
|
|
—
|
|
|
74
|
|
(2)
|
(1)
|
Includes intersegment sales primarily related to the Acetyl Chain.
|
(2)
|
Includes a decrease in accrued capital expenditures of $8 million and an increase of $9 million for the three months ended June 30, 2020 and 2019, respectively.
|
|
Engineered
Materials
|
|
Acetate Tow
|
|
Acetyl
Chain
|
|
Other
Activities
|
|
Eliminations
|
|
Consolidated
|
|
||||||
|
(In $ millions)
|
|
||||||||||||||||
|
Six Months Ended June 30, 2020
|
|
||||||||||||||||
Net sales
|
983
|
|
|
256
|
|
|
1,461
|
|
|
—
|
|
|
(47
|
)
|
(1)
|
2,653
|
|
|
(25
|
)
|
|
(1
|
)
|
|
5
|
|
|
(6
|
)
|
|
—
|
|
|
(27
|
)
|
|
|
Operating profit (loss)
|
89
|
|
|
58
|
|
|
256
|
|
|
(126
|
)
|
|
—
|
|
|
277
|
|
|
Equity in net earnings (loss) of affiliates
|
79
|
|
|
—
|
|
|
1
|
|
|
8
|
|
|
—
|
|
|
88
|
|
|
Depreciation and amortization
|
66
|
|
|
17
|
|
|
81
|
|
|
8
|
|
|
—
|
|
|
172
|
|
|
Capital expenditures
|
52
|
|
|
16
|
|
|
81
|
|
|
17
|
|
|
—
|
|
|
166
|
|
(2)
|
|
As of June 30, 2020
|
|
||||||||||||||||
Goodwill and intangible assets, net
|
985
|
|
|
152
|
|
|
278
|
|
|
—
|
|
|
—
|
|
|
1,415
|
|
|
Total assets
|
4,009
|
|
|
939
|
|
|
3,549
|
|
|
1,009
|
|
|
—
|
|
|
9,506
|
|
|
|
Six Months Ended June 30, 2019
|
|
||||||||||||||||
Net sales
|
1,256
|
|
|
330
|
|
|
1,754
|
|
|
—
|
|
|
(61
|
)
|
(1)
|
3,279
|
|
|
7
|
|
|
(84
|
)
|
|
(1
|
)
|
|
(16
|
)
|
|
—
|
|
|
(94
|
)
|
|
|
Operating profit (loss)
|
247
|
|
|
(4
|
)
|
|
390
|
|
|
(127
|
)
|
|
—
|
|
|
506
|
|
|
Equity in net earnings (loss) of affiliates
|
82
|
|
|
—
|
|
|
2
|
|
|
5
|
|
|
—
|
|
|
89
|
|
|
Depreciation and amortization
|
63
|
|
|
21
|
|
|
76
|
|
|
7
|
|
|
—
|
|
|
167
|
|
|
Capital expenditures
|
37
|
|
|
19
|
|
|
61
|
|
|
11
|
|
|
—
|
|
|
128
|
|
(2)
|
|
As of December 31, 2019
|
|
||||||||||||||||
Goodwill and intangible assets, net
|
999
|
|
|
153
|
|
|
234
|
|
|
—
|
|
|
—
|
|
|
1,386
|
|
|
Total assets
|
4,125
|
|
|
977
|
|
|
3,489
|
|
|
885
|
|
|
—
|
|
|
9,476
|
|
|
(1)
|
Includes intersegment sales primarily related to the Acetyl Chain.
|
(2)
|
Includes a decrease in accrued capital expenditures of $41 million and $16 million for the six months ended June 30, 2020 and 2019, respectively.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||
|
(In $ millions)
|
||||||||||
Engineered Materials
|
|
|
|
|
|
|
|
||||
North America
|
111
|
|
|
180
|
|
|
273
|
|
|
376
|
|
Europe and Africa
|
183
|
|
|
269
|
|
|
443
|
|
|
571
|
|
Asia-Pacific
|
117
|
|
|
126
|
|
|
240
|
|
|
274
|
|
South America
|
9
|
|
|
18
|
|
|
27
|
|
|
35
|
|
Total
|
420
|
|
|
593
|
|
|
983
|
|
|
1,256
|
|
|
|
|
|
|
|
|
|
||||
Acetate Tow
|
|
|
|
|
|
|
|
||||
North America
|
27
|
|
|
33
|
|
|
48
|
|
|
67
|
|
Europe and Africa
|
68
|
|
|
67
|
|
|
139
|
|
|
130
|
|
Asia-Pacific
|
29
|
|
|
56
|
|
|
61
|
|
|
116
|
|
South America
|
3
|
|
|
8
|
|
|
8
|
|
|
17
|
|
Total
|
127
|
|
|
164
|
|
|
256
|
|
|
330
|
|
|
|
|
|
|
|
|
|
||||
Acetyl Chain
|
|
|
|
|
|
|
|
||||
North America
|
208
|
|
|
278
|
|
|
482
|
|
|
564
|
|
Europe and Africa
|
236
|
|
|
282
|
|
|
502
|
|
|
576
|
|
Asia-Pacific
|
190
|
|
|
252
|
|
|
397
|
|
|
508
|
|
South America
|
12
|
|
|
23
|
|
|
33
|
|
|
45
|
|
Total(1)
|
646
|
|
|
835
|
|
|
1,414
|
|
|
1,693
|
|
(1)
|
Excludes intersegment sales of $16 million and $30 million for the three months ended June 30, 2020 and 2019, respectively. Excludes intersegment sales of $47 million and $61 million for the six months ended June 30, 2020 and 2019, respectively.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||
|
(In $ millions, except share data)
|
||||||||||
Amounts attributable to Celanese Corporation
|
|
|
|
|
|
|
|
||||
Earnings (loss) from continuing operations
|
110
|
|
|
210
|
|
|
335
|
|
|
548
|
|
Earnings (loss) from discontinued operations
|
(3
|
)
|
|
(1
|
)
|
|
(10
|
)
|
|
(2
|
)
|
Net earnings (loss)
|
107
|
|
|
209
|
|
|
325
|
|
|
546
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares - basic
|
118,339,872
|
|
|
125,289,967
|
|
|
118,795,780
|
|
|
126,409,926
|
|
Incremental shares attributable to equity awards(1)
|
427,761
|
|
|
557,927
|
|
|
581,735
|
|
|
701,120
|
|
Weighted average shares - diluted
|
118,767,633
|
|
|
125,847,894
|
|
|
119,377,515
|
|
|
127,111,046
|
|
(1)
|
Excludes 120,210 and 0 equity award shares for the three months ended June 30, 2020 and 2019, respectively, as their effect would have been antidilutive. Excludes 89,241 and 0 equity award shares for the six months ended June 30, 2020 and 2019, respectively, as their effect would have been antidilutive.
|
|
Three Months Ended June 30, 2020
|
||||||||||||||||
|
Parent
Guarantor
|
|
Issuer
|
|
Subsidiary
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||
|
(In $ millions)
|
||||||||||||||||
Net sales
|
—
|
|
|
—
|
|
|
462
|
|
|
1,033
|
|
|
(302
|
)
|
|
1,193
|
|
Cost of sales
|
—
|
|
|
—
|
|
|
(408
|
)
|
|
(822
|
)
|
|
279
|
|
|
(951
|
)
|
Gross profit
|
—
|
|
|
—
|
|
|
54
|
|
|
211
|
|
|
(23
|
)
|
|
242
|
|
Selling, general and administrative expenses
|
—
|
|
|
—
|
|
|
(36
|
)
|
|
(78
|
)
|
|
—
|
|
|
(114
|
)
|
Amortization of intangible assets
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(4
|
)
|
|
—
|
|
|
(6
|
)
|
Research and development expenses
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
(10
|
)
|
|
—
|
|
|
(18
|
)
|
Other (charges) gains, net
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(16
|
)
|
|
—
|
|
|
(21
|
)
|
Foreign exchange gain (loss), net
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Gain (loss) on disposition of businesses and assets, net
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
1
|
|
|
—
|
|
|
(1
|
)
|
Operating profit (loss)
|
—
|
|
|
—
|
|
|
1
|
|
|
105
|
|
|
(23
|
)
|
|
83
|
|
Equity in net earnings (loss) of affiliates
|
110
|
|
|
111
|
|
|
137
|
|
|
29
|
|
|
(356
|
)
|
|
31
|
|
Non-operating pension and other postretirement employee benefit (expense) income
|
—
|
|
|
—
|
|
|
25
|
|
|
2
|
|
|
—
|
|
|
27
|
|
Interest expense
|
(4
|
)
|
|
(10
|
)
|
|
(25
|
)
|
|
(3
|
)
|
|
15
|
|
|
(27
|
)
|
Interest income
|
—
|
|
|
9
|
|
|
5
|
|
|
2
|
|
|
(15
|
)
|
|
1
|
|
Dividend income - equity investments
|
—
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|
—
|
|
|
32
|
|
Other income (expense), net
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
2
|
|
|
—
|
|
|
—
|
|
Earnings (loss) from continuing operations before tax
|
106
|
|
|
109
|
|
|
142
|
|
|
169
|
|
|
(379
|
)
|
|
147
|
|
Income tax (provision) benefit
|
1
|
|
|
1
|
|
|
(23
|
)
|
|
(17
|
)
|
|
3
|
|
|
(35
|
)
|
Earnings (loss) from continuing operations
|
107
|
|
|
110
|
|
|
119
|
|
|
152
|
|
|
(376
|
)
|
|
112
|
|
Earnings (loss) from operation of discontinued operations
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
Income tax (provision) benefit from discontinued operations
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
Earnings (loss) from discontinued operations
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
Net earnings (loss)
|
107
|
|
|
110
|
|
|
116
|
|
|
152
|
|
|
(376
|
)
|
|
109
|
|
Net (earnings) loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
Net earnings (loss) attributable to Celanese Corporation
|
107
|
|
|
110
|
|
|
116
|
|
|
150
|
|
|
(376
|
)
|
|
107
|
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||
|
Parent
Guarantor
|
|
Issuer
|
|
Subsidiary
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||
|
(In $ millions)
|
||||||||||||||||
Net sales
|
—
|
|
|
—
|
|
|
586
|
|
|
1,298
|
|
|
(292
|
)
|
|
1,592
|
|
Cost of sales
|
—
|
|
|
—
|
|
|
(443
|
)
|
|
(1,020
|
)
|
|
294
|
|
|
(1,169
|
)
|
Gross profit
|
—
|
|
|
—
|
|
|
143
|
|
|
278
|
|
|
2
|
|
|
423
|
|
Selling, general and administrative expenses
|
—
|
|
|
—
|
|
|
(39
|
)
|
|
(79
|
)
|
|
—
|
|
|
(118
|
)
|
Amortization of intangible assets
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(4
|
)
|
|
—
|
|
|
(6
|
)
|
Research and development expenses
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
(10
|
)
|
|
—
|
|
|
(17
|
)
|
Other (charges) gains, net
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(93
|
)
|
|
—
|
|
|
(98
|
)
|
Foreign exchange gain (loss), net
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Gain (loss) on disposition of businesses and assets, net
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
3
|
|
|
—
|
|
|
1
|
|
Operating profit (loss)
|
—
|
|
|
—
|
|
|
88
|
|
|
96
|
|
|
2
|
|
|
186
|
|
Equity in net earnings (loss) of affiliates
|
209
|
|
|
210
|
|
|
122
|
|
|
34
|
|
|
(536
|
)
|
|
39
|
|
Non-operating pension and other postretirement employee benefit (expense) income
|
—
|
|
|
—
|
|
|
16
|
|
|
1
|
|
|
—
|
|
|
17
|
|
Interest expense
|
—
|
|
|
(9
|
)
|
|
(35
|
)
|
|
(13
|
)
|
|
28
|
|
|
(29
|
)
|
Refinancing expense
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
Interest income
|
—
|
|
|
18
|
|
|
11
|
|
|
1
|
|
|
(28
|
)
|
|
2
|
|
Dividend income - equity investments
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|
30
|
|
Other income (expense), net
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
2
|
|
|
—
|
|
|
(2
|
)
|
Earnings (loss) from continuing operations before tax
|
209
|
|
|
211
|
|
|
202
|
|
|
151
|
|
|
(534
|
)
|
|
239
|
|
Income tax (provision) benefit
|
—
|
|
|
(2
|
)
|
|
(23
|
)
|
|
(3
|
)
|
|
—
|
|
|
(28
|
)
|
Earnings (loss) from continuing operations
|
209
|
|
|
209
|
|
|
179
|
|
|
148
|
|
|
(534
|
)
|
|
211
|
|
Earnings (loss) from operation of discontinued operations
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
Income tax (provision) benefit from discontinued operations
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
Earnings (loss) from discontinued operations
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
Net earnings (loss)
|
209
|
|
|
209
|
|
|
178
|
|
|
148
|
|
|
(534
|
)
|
|
210
|
|
Net (earnings) loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
Net earnings (loss) attributable to Celanese Corporation
|
209
|
|
|
209
|
|
|
178
|
|
|
147
|
|
|
(534
|
)
|
|
209
|
|
|
Six Months Ended June 30, 2020
|
||||||||||||||||
|
Parent
Guarantor
|
|
Issuer
|
|
Subsidiary
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||
|
(In $ millions)
|
||||||||||||||||
Net sales
|
—
|
|
|
—
|
|
|
1,022
|
|
|
2,236
|
|
|
(605
|
)
|
|
2,653
|
|
Cost of sales
|
—
|
|
|
—
|
|
|
(868
|
)
|
|
(1,768
|
)
|
|
573
|
|
|
(2,063
|
)
|
Gross profit
|
—
|
|
|
—
|
|
|
154
|
|
|
468
|
|
|
(32
|
)
|
|
590
|
|
Selling, general and administrative expenses
|
—
|
|
|
—
|
|
|
(90
|
)
|
|
(149
|
)
|
|
—
|
|
|
(239
|
)
|
Amortization of intangible assets
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(7
|
)
|
|
—
|
|
|
(11
|
)
|
Research and development expenses
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
(20
|
)
|
|
—
|
|
|
(35
|
)
|
Other (charges) gains, net
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
(14
|
)
|
|
—
|
|
|
(27
|
)
|
Foreign exchange gain (loss), net
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
Gain (loss) on disposition of businesses and assets, net
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
3
|
|
|
—
|
|
|
(1
|
)
|
Operating profit (loss)
|
—
|
|
|
—
|
|
|
27
|
|
|
282
|
|
|
(32
|
)
|
|
277
|
|
Equity in net earnings (loss) of affiliates
|
336
|
|
|
333
|
|
|
325
|
|
|
80
|
|
|
(986
|
)
|
|
88
|
|
Non-operating pension and other postretirement employee benefit (expense) income
|
—
|
|
|
—
|
|
|
50
|
|
|
5
|
|
|
—
|
|
|
55
|
|
Interest expense
|
(12
|
)
|
|
(19
|
)
|
|
(55
|
)
|
|
(8
|
)
|
|
39
|
|
|
(55
|
)
|
Interest income
|
—
|
|
|
22
|
|
|
15
|
|
|
6
|
|
|
(40
|
)
|
|
3
|
|
Dividend income - equity investments
|
—
|
|
|
—
|
|
|
—
|
|
|
68
|
|
|
1
|
|
|
69
|
|
Other income (expense), net
|
—
|
|
|
7
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
2
|
|
Earnings (loss) from continuing operations before tax
|
324
|
|
|
343
|
|
|
362
|
|
|
428
|
|
|
(1,018
|
)
|
|
439
|
|
Income tax (provision) benefit
|
1
|
|
|
(7
|
)
|
|
(18
|
)
|
|
(80
|
)
|
|
4
|
|
|
(100
|
)
|
Earnings (loss) from continuing operations
|
325
|
|
|
336
|
|
|
344
|
|
|
348
|
|
|
(1,014
|
)
|
|
339
|
|
Earnings (loss) from operation of discontinued operations
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(7
|
)
|
|
—
|
|
|
(11
|
)
|
Income tax (provision) benefit from discontinued operations
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
Earnings (loss) from discontinued operations
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(7
|
)
|
|
—
|
|
|
(10
|
)
|
Net earnings (loss)
|
325
|
|
|
336
|
|
|
341
|
|
|
341
|
|
|
(1,014
|
)
|
|
329
|
|
Net (earnings) loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
Net earnings (loss) attributable to Celanese Corporation
|
325
|
|
|
336
|
|
|
341
|
|
|
337
|
|
|
(1,014
|
)
|
|
325
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||
|
Parent
Guarantor
|
|
Issuer
|
|
Subsidiary
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||
|
(In $ millions)
|
||||||||||||||||
Net sales
|
—
|
|
|
—
|
|
|
1,210
|
|
|
2,671
|
|
|
(602
|
)
|
|
3,279
|
|
Cost of sales
|
—
|
|
|
—
|
|
|
(901
|
)
|
|
(2,097
|
)
|
|
595
|
|
|
(2,403
|
)
|
Gross profit
|
—
|
|
|
—
|
|
|
309
|
|
|
574
|
|
|
(7
|
)
|
|
876
|
|
Selling, general and administrative expenses
|
—
|
|
|
—
|
|
|
(79
|
)
|
|
(159
|
)
|
|
—
|
|
|
(238
|
)
|
Amortization of intangible assets
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(8
|
)
|
|
—
|
|
|
(12
|
)
|
Research and development expenses
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
(20
|
)
|
|
—
|
|
|
(33
|
)
|
Other (charges) gains, net
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(89
|
)
|
|
—
|
|
|
(94
|
)
|
Foreign exchange gain (loss), net
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
Gain (loss) on disposition of businesses and assets, net
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
5
|
|
|
—
|
|
|
1
|
|
Operating profit (loss)
|
—
|
|
|
—
|
|
|
204
|
|
|
309
|
|
|
(7
|
)
|
|
506
|
|
Equity in net earnings (loss) of affiliates
|
546
|
|
|
547
|
|
|
339
|
|
|
77
|
|
|
(1,420
|
)
|
|
89
|
|
Non-operating pension and other postretirement employee benefit (expense) income
|
—
|
|
|
—
|
|
|
31
|
|
|
3
|
|
|
—
|
|
|
34
|
|
Interest expense
|
—
|
|
|
(19
|
)
|
|
(66
|
)
|
|
(20
|
)
|
|
45
|
|
|
(60
|
)
|
Refinancing expense
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
Interest income
|
—
|
|
|
31
|
|
|
13
|
|
|
4
|
|
|
(45
|
)
|
|
3
|
|
Dividend income - equity investments
|
—
|
|
|
—
|
|
|
—
|
|
|
62
|
|
|
—
|
|
|
62
|
|
Other income (expense), net
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(6
|
)
|
Earnings (loss) from continuing operations before tax
|
546
|
|
|
552
|
|
|
521
|
|
|
432
|
|
|
(1,427
|
)
|
|
624
|
|
Income tax (provision) benefit
|
—
|
|
|
(6
|
)
|
|
(30
|
)
|
|
(39
|
)
|
|
1
|
|
|
(74
|
)
|
Earnings (loss) from continuing operations
|
546
|
|
|
546
|
|
|
491
|
|
|
393
|
|
|
(1,426
|
)
|
|
550
|
|
Earnings (loss) from operation of discontinued operations
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
Income tax (provision) benefit from discontinued operations
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
Earnings (loss) from discontinued operations
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
Net earnings (loss)
|
546
|
|
|
546
|
|
|
489
|
|
|
393
|
|
|
(1,426
|
)
|
|
548
|
|
Net (earnings) loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
Net earnings (loss) attributable to Celanese Corporation
|
546
|
|
|
546
|
|
|
489
|
|
|
391
|
|
|
(1,426
|
)
|
|
546
|
|
|
Three Months Ended June 30, 2020
|
||||||||||||||||
|
Parent
Guarantor
|
|
Issuer
|
|
Subsidiary
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||
|
(In $ millions)
|
||||||||||||||||
Net earnings (loss)
|
107
|
|
|
110
|
|
|
116
|
|
|
152
|
|
|
(376
|
)
|
|
109
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation gain (loss)
|
(6
|
)
|
|
(6
|
)
|
|
15
|
|
|
18
|
|
|
(27
|
)
|
|
(6
|
)
|
Gain (loss) on cash flow hedges
|
1
|
|
|
1
|
|
|
3
|
|
|
2
|
|
|
(6
|
)
|
|
1
|
|
Total other comprehensive income (loss), net of tax
|
(5
|
)
|
|
(5
|
)
|
|
18
|
|
|
20
|
|
|
(33
|
)
|
|
(5
|
)
|
Total comprehensive income (loss), net of tax
|
102
|
|
|
105
|
|
|
134
|
|
|
172
|
|
|
(409
|
)
|
|
104
|
|
Comprehensive (income) loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
Comprehensive income (loss) attributable to Celanese Corporation
|
102
|
|
|
105
|
|
|
134
|
|
|
170
|
|
|
(409
|
)
|
|
102
|
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||
|
Parent
Guarantor
|
|
Issuer
|
|
Subsidiary
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||
|
(In $ millions)
|
||||||||||||||||
Net earnings (loss)
|
209
|
|
|
209
|
|
|
178
|
|
|
148
|
|
|
(534
|
)
|
|
210
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation gain (loss)
|
(11
|
)
|
|
(11
|
)
|
|
2
|
|
|
4
|
|
|
5
|
|
|
(11
|
)
|
Gain (loss) on cash flow hedges
|
(13
|
)
|
|
(13
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
19
|
|
|
(13
|
)
|
Total other comprehensive income (loss), net of tax
|
(24
|
)
|
|
(24
|
)
|
|
(1
|
)
|
|
1
|
|
|
24
|
|
|
(24
|
)
|
Total comprehensive income (loss), net of tax
|
185
|
|
|
185
|
|
|
177
|
|
|
149
|
|
|
(510
|
)
|
|
186
|
|
Comprehensive (income) loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
Comprehensive income (loss) attributable to Celanese Corporation
|
185
|
|
|
185
|
|
|
177
|
|
|
148
|
|
|
(510
|
)
|
|
185
|
|
|
Six Months Ended June 30, 2020
|
||||||||||||||||
|
Parent
Guarantor
|
|
Issuer
|
|
Subsidiary
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||
|
(In $ millions)
|
||||||||||||||||
Net earnings (loss)
|
325
|
|
|
336
|
|
|
341
|
|
|
341
|
|
|
(1,014
|
)
|
|
329
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation gain (loss)
|
(8
|
)
|
|
(8
|
)
|
|
(29
|
)
|
|
(36
|
)
|
|
73
|
|
|
(8
|
)
|
Gain (loss) on cash flow hedges
|
(38
|
)
|
|
(38
|
)
|
|
2
|
|
|
2
|
|
|
34
|
|
|
(38
|
)
|
Total other comprehensive income (loss), net of tax
|
(46
|
)
|
|
(46
|
)
|
|
(27
|
)
|
|
(34
|
)
|
|
107
|
|
|
(46
|
)
|
Total comprehensive income (loss), net of tax
|
279
|
|
|
290
|
|
|
314
|
|
|
307
|
|
|
(907
|
)
|
|
283
|
|
Comprehensive (income) loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
Comprehensive income (loss) attributable to Celanese Corporation
|
279
|
|
|
290
|
|
|
314
|
|
|
303
|
|
|
(907
|
)
|
|
279
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||
|
Parent
Guarantor
|
|
Issuer
|
|
Subsidiary
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||
|
(In $ millions)
|
||||||||||||||||
Net earnings (loss)
|
546
|
|
|
546
|
|
|
489
|
|
|
393
|
|
|
(1,426
|
)
|
|
548
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation gain (loss)
|
(4
|
)
|
|
(4
|
)
|
|
(16
|
)
|
|
(20
|
)
|
|
40
|
|
|
(4
|
)
|
Gain (loss) on cash flow hedges
|
(16
|
)
|
|
(16
|
)
|
|
3
|
|
|
5
|
|
|
8
|
|
|
(16
|
)
|
Total other comprehensive income (loss), net of tax
|
(20
|
)
|
|
(20
|
)
|
|
(13
|
)
|
|
(15
|
)
|
|
48
|
|
|
(20
|
)
|
Total comprehensive income (loss), net of tax
|
526
|
|
|
526
|
|
|
476
|
|
|
378
|
|
|
(1,378
|
)
|
|
528
|
|
Comprehensive (income) loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
Comprehensive income (loss) attributable to Celanese Corporation
|
526
|
|
|
526
|
|
|
476
|
|
|
376
|
|
|
(1,378
|
)
|
|
526
|
|
|
As of June 30, 2020
|
||||||||||||||||
|
Parent
Guarantor
|
|
Issuer
|
|
Subsidiary
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||
|
(In $ millions)
|
||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
—
|
|
|
—
|
|
|
28
|
|
|
511
|
|
|
—
|
|
|
539
|
|
Trade receivables - third party and affiliates
|
—
|
|
|
—
|
|
|
146
|
|
|
732
|
|
|
(149
|
)
|
|
729
|
|
Non-trade receivables, net
|
58
|
|
|
2,999
|
|
|
2,103
|
|
|
1,126
|
|
|
(5,974
|
)
|
|
312
|
|
Inventories, net
|
—
|
|
|
—
|
|
|
381
|
|
|
729
|
|
|
(79
|
)
|
|
1,031
|
|
Marketable securities
|
—
|
|
|
—
|
|
|
21
|
|
|
15
|
|
|
—
|
|
|
36
|
|
Other assets
|
—
|
|
|
25
|
|
|
27
|
|
|
38
|
|
|
(28
|
)
|
|
62
|
|
Total current assets
|
58
|
|
|
3,024
|
|
|
2,706
|
|
|
3,151
|
|
|
(6,230
|
)
|
|
2,709
|
|
Investments in affiliates
|
4,350
|
|
|
5,515
|
|
|
4,421
|
|
|
824
|
|
|
(14,153
|
)
|
|
957
|
|
Property, plant and equipment, net
|
—
|
|
|
—
|
|
|
1,501
|
|
|
2,224
|
|
|
—
|
|
|
3,725
|
|
Operating lease right-of-use assets
|
—
|
|
|
—
|
|
|
49
|
|
|
152
|
|
|
—
|
|
|
201
|
|
Deferred income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
102
|
|
|
(2
|
)
|
|
100
|
|
Other assets
|
—
|
|
|
22
|
|
|
228
|
|
|
159
|
|
|
(10
|
)
|
|
399
|
|
Goodwill
|
—
|
|
|
—
|
|
|
398
|
|
|
700
|
|
|
—
|
|
|
1,098
|
|
Intangible assets, net
|
—
|
|
|
—
|
|
|
121
|
|
|
196
|
|
|
—
|
|
|
317
|
|
Total assets
|
4,408
|
|
|
8,561
|
|
|
9,424
|
|
|
7,508
|
|
|
(20,395
|
)
|
|
9,506
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Short-term borrowings and current installments of long-term debt - third party and affiliates
|
1,921
|
|
|
1,192
|
|
|
3,077
|
|
|
231
|
|
|
(5,376
|
)
|
|
1,045
|
|
Trade payables - third party and affiliates
|
—
|
|
|
—
|
|
|
270
|
|
|
478
|
|
|
(149
|
)
|
|
599
|
|
Other liabilities
|
—
|
|
|
136
|
|
|
169
|
|
|
392
|
|
|
(125
|
)
|
|
572
|
|
Income taxes payable
|
—
|
|
|
—
|
|
|
475
|
|
|
76
|
|
|
(505
|
)
|
|
46
|
|
Total current liabilities
|
1,921
|
|
|
1,328
|
|
|
3,991
|
|
|
1,177
|
|
|
(6,155
|
)
|
|
2,262
|
|
Noncurrent Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Long-term debt
|
—
|
|
|
2,881
|
|
|
26
|
|
|
82
|
|
|
—
|
|
|
2,989
|
|
Deferred income taxes
|
—
|
|
|
—
|
|
|
97
|
|
|
161
|
|
|
(2
|
)
|
|
256
|
|
Uncertain tax positions
|
—
|
|
|
2
|
|
|
—
|
|
|
174
|
|
|
13
|
|
|
189
|
|
Benefit obligations
|
—
|
|
|
—
|
|
|
248
|
|
|
331
|
|
|
—
|
|
|
579
|
|
Operating lease liabilities
|
—
|
|
|
—
|
|
|
40
|
|
|
143
|
|
|
—
|
|
|
183
|
|
Other liabilities
|
—
|
|
|
—
|
|
|
93
|
|
|
119
|
|
|
(33
|
)
|
|
179
|
|
Total noncurrent liabilities
|
—
|
|
|
2,883
|
|
|
504
|
|
|
1,010
|
|
|
(22
|
)
|
|
4,375
|
|
Total Celanese Corporation stockholders' equity
|
2,487
|
|
|
4,350
|
|
|
4,929
|
|
|
4,939
|
|
|
(14,218
|
)
|
|
2,487
|
|
Noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
382
|
|
|
—
|
|
|
382
|
|
Total equity
|
2,487
|
|
|
4,350
|
|
|
4,929
|
|
|
5,321
|
|
|
(14,218
|
)
|
|
2,869
|
|
Total liabilities and equity
|
4,408
|
|
|
8,561
|
|
|
9,424
|
|
|
7,508
|
|
|
(20,395
|
)
|
|
9,506
|
|
|
As of December 31, 2019
|
||||||||||||||||
|
Parent
Guarantor
|
|
Issuer
|
|
Subsidiary
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||
|
(In $ millions)
|
||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
—
|
|
|
—
|
|
|
16
|
|
|
447
|
|
|
—
|
|
|
463
|
|
Trade receivables - third party and affiliates
|
—
|
|
|
—
|
|
|
122
|
|
|
851
|
|
|
(123
|
)
|
|
850
|
|
Non-trade receivables, net
|
56
|
|
|
1,188
|
|
|
1,925
|
|
|
743
|
|
|
(3,581
|
)
|
|
331
|
|
Inventories, net
|
—
|
|
|
—
|
|
|
360
|
|
|
725
|
|
|
(47
|
)
|
|
1,038
|
|
Marketable securities
|
—
|
|
|
—
|
|
|
24
|
|
|
16
|
|
|
—
|
|
|
40
|
|
Other assets
|
—
|
|
|
36
|
|
|
11
|
|
|
38
|
|
|
(42
|
)
|
|
43
|
|
Total current assets
|
56
|
|
|
1,224
|
|
|
2,458
|
|
|
2,820
|
|
|
(3,793
|
)
|
|
2,765
|
|
Investments in affiliates
|
4,064
|
|
|
5,217
|
|
|
4,206
|
|
|
841
|
|
|
(13,353
|
)
|
|
975
|
|
Property, plant and equipment, net
|
—
|
|
|
—
|
|
|
1,461
|
|
|
2,252
|
|
|
—
|
|
|
3,713
|
|
Operating lease right-of-use assets
|
—
|
|
|
—
|
|
|
50
|
|
|
153
|
|
|
—
|
|
|
203
|
|
Deferred income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
101
|
|
|
(5
|
)
|
|
96
|
|
Other assets
|
—
|
|
|
1,661
|
|
|
195
|
|
|
445
|
|
|
(1,963
|
)
|
|
338
|
|
Goodwill
|
—
|
|
|
—
|
|
|
399
|
|
|
675
|
|
|
—
|
|
|
1,074
|
|
Intangible assets, net
|
—
|
|
|
—
|
|
|
125
|
|
|
187
|
|
|
—
|
|
|
312
|
|
Total assets
|
4,120
|
|
|
8,102
|
|
|
8,894
|
|
|
7,474
|
|
|
(19,114
|
)
|
|
9,476
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Short-term borrowings and current installments of long-term debt - third party and affiliates
|
1,596
|
|
|
374
|
|
|
1,089
|
|
|
385
|
|
|
(2,948
|
)
|
|
496
|
|
Trade payables - third party and affiliates
|
17
|
|
|
—
|
|
|
333
|
|
|
553
|
|
|
(123
|
)
|
|
780
|
|
Other liabilities
|
—
|
|
|
49
|
|
|
188
|
|
|
397
|
|
|
(173
|
)
|
|
461
|
|
Income taxes payable
|
—
|
|
|
—
|
|
|
439
|
|
|
80
|
|
|
(502
|
)
|
|
17
|
|
Total current liabilities
|
1,613
|
|
|
423
|
|
|
2,049
|
|
|
1,415
|
|
|
(3,746
|
)
|
|
1,754
|
|
Noncurrent Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Long-term debt
|
—
|
|
|
3,565
|
|
|
1,677
|
|
|
101
|
|
|
(1,934
|
)
|
|
3,409
|
|
Deferred income taxes
|
—
|
|
|
3
|
|
|
101
|
|
|
158
|
|
|
(5
|
)
|
|
257
|
|
Uncertain tax positions
|
—
|
|
|
—
|
|
|
—
|
|
|
169
|
|
|
(4
|
)
|
|
165
|
|
Benefit obligations
|
—
|
|
|
—
|
|
|
257
|
|
|
332
|
|
|
—
|
|
|
589
|
|
Operating lease liabilities
|
—
|
|
|
—
|
|
|
40
|
|
|
140
|
|
|
1
|
|
|
181
|
|
Other liabilities
|
—
|
|
|
47
|
|
|
93
|
|
|
118
|
|
|
(35
|
)
|
|
223
|
|
Total noncurrent liabilities
|
—
|
|
|
3,615
|
|
|
2,168
|
|
|
1,018
|
|
|
(1,977
|
)
|
|
4,824
|
|
Total Celanese Corporation stockholders' equity
|
2,507
|
|
|
4,064
|
|
|
4,677
|
|
|
4,650
|
|
|
(13,391
|
)
|
|
2,507
|
|
Noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
391
|
|
|
—
|
|
|
391
|
|
Total equity
|
2,507
|
|
|
4,064
|
|
|
4,677
|
|
|
5,041
|
|
|
(13,391
|
)
|
|
2,898
|
|
Total liabilities and equity
|
4,120
|
|
|
8,102
|
|
|
8,894
|
|
|
7,474
|
|
|
(19,114
|
)
|
|
9,476
|
|
|
Six Months Ended June 30, 2020
|
||||||||||||||||
|
Parent
Guarantor
|
|
Issuer
|
|
Subsidiary
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||
|
(In $ millions)
|
||||||||||||||||
Net cash provided by (used in) operating activities
|
315
|
|
|
(339
|
)
|
|
256
|
|
|
406
|
|
|
—
|
|
|
638
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Capital expenditures on property, plant and equipment
|
—
|
|
|
—
|
|
|
(127
|
)
|
|
(80
|
)
|
|
—
|
|
|
(207
|
)
|
Acquisitions, net of cash acquired
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(83
|
)
|
|
—
|
|
|
(88
|
)
|
Proceeds from sale of businesses and assets, net
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
Return of capital from subsidiary
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
(23
|
)
|
|
—
|
|
Intercompany loan receipts (disbursements)
|
—
|
|
|
—
|
|
|
(88
|
)
|
|
(67
|
)
|
|
155
|
|
|
—
|
|
Other, net
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
(9
|
)
|
|
—
|
|
|
(17
|
)
|
Net cash provided by (used in) investing activities
|
—
|
|
|
—
|
|
|
(205
|
)
|
|
(236
|
)
|
|
132
|
|
|
(309
|
)
|
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net change in short-term borrowings with maturities of 3 months or less
|
—
|
|
|
(28
|
)
|
|
(17
|
)
|
|
—
|
|
|
(91
|
)
|
|
(136
|
)
|
Proceeds from short-term borrowings
|
—
|
|
|
300
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
306
|
|
Repayments of short-term borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
(50
|
)
|
|
—
|
|
|
(50
|
)
|
Proceeds from long-term debt
|
—
|
|
|
339
|
|
|
—
|
|
|
—
|
|
|
(339
|
)
|
|
—
|
|
Repayments of long-term debt
|
—
|
|
|
(272
|
)
|
|
(2
|
)
|
|
(17
|
)
|
|
275
|
|
|
(16
|
)
|
Purchases of treasury stock, including related fees
|
(167
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(167
|
)
|
Common stock dividends
|
(148
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(148
|
)
|
Return of capital to parent
|
—
|
|
|
—
|
|
|
—
|
|
|
(23
|
)
|
|
23
|
|
|
—
|
|
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
(13
|
)
|
Other, net
|
—
|
|
|
—
|
|
|
(20
|
)
|
|
(4
|
)
|
|
—
|
|
|
(24
|
)
|
Net cash provided by (used in) financing activities
|
(315
|
)
|
|
339
|
|
|
(39
|
)
|
|
(101
|
)
|
|
(132
|
)
|
|
(248
|
)
|
Exchange rate effects on cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
Net increase (decrease) in cash and cash equivalents
|
—
|
|
|
—
|
|
|
12
|
|
|
64
|
|
|
—
|
|
|
76
|
|
Cash and cash equivalents as of beginning of period
|
—
|
|
|
—
|
|
|
16
|
|
|
447
|
|
|
—
|
|
|
463
|
|
Cash and cash equivalents as of end of period
|
—
|
|
|
—
|
|
|
28
|
|
|
511
|
|
|
—
|
|
|
539
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||
|
Parent
Guarantor
|
|
Issuer
|
|
Subsidiary
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||
|
(In $ millions)
|
||||||||||||||||
Net cash provided by (used in) operating activities
|
636
|
|
|
(31
|
)
|
|
1,052
|
|
|
635
|
|
|
(1,561
|
)
|
|
731
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Capital expenditures on property, plant and equipment
|
—
|
|
|
—
|
|
|
(83
|
)
|
|
(61
|
)
|
|
—
|
|
|
(144
|
)
|
Acquisitions, net of cash acquired
|
—
|
|
|
—
|
|
|
(31
|
)
|
|
(60
|
)
|
|
—
|
|
|
(91
|
)
|
Return of capital from subsidiary
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
Intercompany loan receipts (disbursements)
|
—
|
|
|
—
|
|
|
(653
|
)
|
|
—
|
|
|
653
|
|
|
—
|
|
Other, net
|
—
|
|
|
—
|
|
|
2
|
|
|
(10
|
)
|
|
—
|
|
|
(8
|
)
|
Net cash provided by (used in) investing activities
|
—
|
|
|
—
|
|
|
(758
|
)
|
|
(131
|
)
|
|
646
|
|
|
(243
|
)
|
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net change in short-term borrowings with maturities of 3 months or less
|
—
|
|
|
149
|
|
|
3
|
|
|
(4
|
)
|
|
(43
|
)
|
|
105
|
|
Proceeds from short-term borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
610
|
|
|
(610
|
)
|
|
—
|
|
Repayments of short-term borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
(12
|
)
|
Proceeds from long-term debt
|
—
|
|
|
499
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
499
|
|
Repayments of long-term debt
|
—
|
|
|
(335
|
)
|
|
(1
|
)
|
|
(12
|
)
|
|
—
|
|
|
(348
|
)
|
Purchases of treasury stock, including related fees
|
(488
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(488
|
)
|
Dividends to parent
|
—
|
|
|
(272
|
)
|
|
(251
|
)
|
|
(1,038
|
)
|
|
1,561
|
|
|
—
|
|
Common stock dividends
|
(148
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(148
|
)
|
Return of capital to parent
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
7
|
|
|
—
|
|
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
Other, net
|
—
|
|
|
(10
|
)
|
|
(24
|
)
|
|
(4
|
)
|
|
—
|
|
|
(38
|
)
|
Net cash provided by (used in) financing activities
|
(636
|
)
|
|
31
|
|
|
(273
|
)
|
|
(474
|
)
|
|
915
|
|
|
(437
|
)
|
Exchange rate effects on cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Net increase (decrease) in cash and cash equivalents
|
—
|
|
|
—
|
|
|
21
|
|
|
31
|
|
|
—
|
|
|
52
|
|
Cash and cash equivalents as of beginning of period
|
—
|
|
|
—
|
|
|
30
|
|
|
409
|
|
|
—
|
|
|
439
|
|
Cash and cash equivalents as of end of period
|
—
|
|
|
—
|
|
|
51
|
|
|
440
|
|
|
—
|
|
|
491
|
|
•
|
changes in general economic, business, political and regulatory conditions in the countries or regions in which we operate;
|
•
|
the length and depth of product and industry business cycles particularly in the automotive, electrical, textiles, electronics and construction industries;
|
•
|
changes in the price and availability of raw materials, particularly changes in the demand for, supply of, and market prices of ethylene, methanol, natural gas, wood pulp and fuel oil and the prices for electricity and other energy sources;
|
•
|
the ability to pass increases in raw material prices on to customers or otherwise improve margins through price increases;
|
•
|
the ability to maintain plant utilization rates and to implement planned capacity additions, expansions and maintenance;
|
•
|
the ability to reduce or maintain current levels of production costs and to improve productivity by implementing technological improvements to existing plants;
|
•
|
increased price competition and the introduction of competing products by other companies;
|
•
|
the ability to identify desirable potential acquisition targets and to consummate acquisition or investment transactions, including obtaining regulatory approvals, consistent with our strategy;
|
•
|
market acceptance of our technology;
|
•
|
the ability to obtain governmental approvals and to construct facilities on terms and schedules acceptable to us;
|
•
|
changes in applicable tariffs, duties and trade agreements, tax rates or legislation throughout the world including, but not limited to, adjustments, changes in estimates or interpretations that may impact recorded or future tax impacts associated with the Tax Cuts and Jobs Act (the "TCJA");
|
•
|
changes in the degree of intellectual property and other legal protection afforded to our products or technologies, or the theft of such intellectual property;
|
•
|
compliance and other costs and potential disruption or interruption of production or operations due to accidents, interruptions in sources of raw materials, cyber security incidents, terrorism or political unrest, public health crises (including, but not limited to, the COVID-19 outbreak), or other unforeseen events or delays in construction or operation of facilities, including as a result of geopolitical conditions, the occurrence of acts of war or terrorist incidents or as a result of weather, natural disasters, or other crises including public health crises;
|
•
|
potential liability for remedial actions and increased costs under existing or future environmental regulations, including those relating to climate change;
|
•
|
potential liability resulting from pending or future claims or litigation, including investigations or enforcement actions, or from changes in the laws, regulations or policies of governments or other governmental activities, in the countries in which we operate;
|
•
|
changes in currency exchange rates and interest rates;
|
•
|
our level of indebtedness, which could diminish our ability to raise additional capital to fund operations or limit our ability to react to changes in the economy or the chemicals industry; and
|
•
|
various other factors, both referenced and not referenced in this Quarterly Report.
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
||||||||||
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
||||||
|
(unaudited)
|
||||||||||||||||
|
(In $ millions, except percentages)
|
||||||||||||||||
Statement of Operations Data
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net sales
|
1,193
|
|
|
1,592
|
|
|
(399
|
)
|
|
2,653
|
|
|
3,279
|
|
|
(626
|
)
|
Gross profit
|
242
|
|
|
423
|
|
|
(181
|
)
|
|
590
|
|
|
876
|
|
|
(286
|
)
|
Selling, general and administrative ("SG&A") expenses
|
(114
|
)
|
|
(118
|
)
|
|
4
|
|
|
(239
|
)
|
|
(238
|
)
|
|
(1
|
)
|
Other (charges) gains, net
|
(21
|
)
|
|
(98
|
)
|
|
77
|
|
|
(27
|
)
|
|
(94
|
)
|
|
67
|
|
Operating profit (loss)
|
83
|
|
|
186
|
|
|
(103
|
)
|
|
277
|
|
|
506
|
|
|
(229
|
)
|
Equity in net earnings (loss) of affiliates
|
31
|
|
|
39
|
|
|
(8
|
)
|
|
88
|
|
|
89
|
|
|
(1
|
)
|
Non-operating pension and other postretirement employee benefit (expense) income
|
27
|
|
|
17
|
|
|
10
|
|
|
55
|
|
|
34
|
|
|
21
|
|
Interest expense
|
(27
|
)
|
|
(29
|
)
|
|
2
|
|
|
(55
|
)
|
|
(60
|
)
|
|
5
|
|
Dividend income - equity investments
|
32
|
|
|
30
|
|
|
2
|
|
|
69
|
|
|
62
|
|
|
7
|
|
Earnings (loss) from continuing operations before tax
|
147
|
|
|
239
|
|
|
(92
|
)
|
|
439
|
|
|
624
|
|
|
(185
|
)
|
Earnings (loss) from continuing operations
|
112
|
|
|
211
|
|
|
(99
|
)
|
|
339
|
|
|
550
|
|
|
(211
|
)
|
Earnings (loss) from discontinued operations
|
(3
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
(10
|
)
|
|
(2
|
)
|
|
(8
|
)
|
Net earnings (loss)
|
109
|
|
|
210
|
|
|
(101
|
)
|
|
329
|
|
|
548
|
|
|
(219
|
)
|
Net earnings (loss) attributable to Celanese Corporation
|
107
|
|
|
209
|
|
|
(102
|
)
|
|
325
|
|
|
546
|
|
|
(221
|
)
|
Other Data
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Depreciation and amortization
|
87
|
|
|
84
|
|
|
3
|
|
|
172
|
|
|
167
|
|
|
5
|
|
SG&A expenses as a percentage of Net sales
|
9.6
|
%
|
|
7.4
|
%
|
|
|
|
9.0
|
%
|
|
7.3
|
%
|
|
|
||
Operating margin(1)
|
7.0
|
%
|
|
11.7
|
%
|
|
|
|
|
10.4
|
%
|
|
15.4
|
%
|
|
|
|
Other (charges) gains, net
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Restructuring
|
(2
|
)
|
|
(15
|
)
|
|
13
|
|
|
(8
|
)
|
|
(14
|
)
|
|
6
|
|
Asset impairments
|
(25
|
)
|
|
(83
|
)
|
|
58
|
|
|
(29
|
)
|
|
(83
|
)
|
|
54
|
|
Plant/office closures
|
6
|
|
|
—
|
|
|
6
|
|
|
5
|
|
|
(1
|
)
|
|
6
|
|
Commercial disputes
|
1
|
|
|
—
|
|
|
1
|
|
|
6
|
|
|
4
|
|
|
2
|
|
European Commission investigation
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
Other
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Total Other (charges) gains, net
|
(21
|
)
|
|
(98
|
)
|
|
77
|
|
|
(27
|
)
|
|
(94
|
)
|
|
67
|
|
(1)
|
Defined as Operating profit (loss) divided by Net sales.
|
|
As of
June 30, 2020 |
|
As of
December 31, 2019 |
||
|
(unaudited)
|
||||
|
(In $ millions)
|
||||
Balance Sheet Data
|
|
|
|
||
Cash and cash equivalents
|
539
|
|
|
463
|
|
|
|
|
|
||
Short-term borrowings and current installments of long-term debt - third party and affiliates
|
1,045
|
|
|
496
|
|
Long-term debt, net of unamortized deferred financing costs
|
2,989
|
|
|
3,409
|
|
Total debt
|
4,034
|
|
|
3,905
|
|
|
Volume
|
|
Price
|
|
Currency
|
|
Other
|
|
Total
|
||||
|
(unaudited)
|
||||||||||||
|
(In percentages)
|
||||||||||||
Engineered Materials
|
(27
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
(29
|
)
|
Acetate Tow
|
(18
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
(23
|
)
|
Acetyl Chain
|
(14
|
)
|
|
(8
|
)
|
|
(1
|
)
|
|
—
|
|
(23
|
)
|
Total Company
|
(20
|
)
|
|
(5
|
)
|
|
(1
|
)
|
|
1
|
|
(25
|
)
|
|
Volume
|
|
Price
|
|
Currency
|
|
Other
|
|
Total
|
||||
|
(unaudited)
|
||||||||||||
|
(In percentages)
|
||||||||||||
Engineered Materials
|
(18
|
)
|
|
(3
|
)
|
|
(1
|
)
|
|
—
|
|
(22
|
)
|
Acetate Tow
|
(17
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
(22
|
)
|
Acetyl Chain
|
(9
|
)
|
|
(8
|
)
|
|
(1
|
)
|
|
1
|
|
(17
|
)
|
Total Company
|
(13
|
)
|
|
(6
|
)
|
|
(1
|
)
|
|
1
|
|
(19
|
)
|
•
|
lower volume across all of our segments, primarily driven by our Engineered Materials and Acetyl Chain segments due to a continued deterioration of global economic conditions and global reduction in the customer demand environment as a result of the COVID-19 pandemic; and
|
•
|
lower pricing across all of our segments.
|
•
|
lower Net sales across all of our segments;
|
•
|
a favorable impact to Other (charges) gains, net. During the three months ended June 30, 2019, we recorded an $83 million long-lived asset impairment loss related to the closure of our acetate flake manufacturing operations in Ocotlán, Mexico, which did not recur in the current year. See Note 12 - Other (Charges) Gains, Net in the accompanying unaudited interim consolidated financial statements for further information; and
|
•
|
lower raw material costs within our Acetyl Chain and Engineered Materials segments.
|
•
|
a decrease in equity investment in earnings of $6 million from our Ibn Sina strategic affiliate, primarily as a result of continued deterioration of global economic conditions.
|
•
|
lower volume across all of our segments, primarily due to a continued deterioration of global economic conditions and global reduction in the customer demand environment as a result of the COVID-19 pandemic; and
|
•
|
lower pricing across all of our segments.
|
•
|
lower Net sales across all of our segments; and
|
•
|
higher plant turnaround and spending costs in our Engineered Materials and Acetyl Chain segments;
|
•
|
lower raw material costs within our Acetyl Chain and Engineered Materials segments; and
|
•
|
a favorable impact to Other (charges) gains, net. During the six months ended June 30, 2019, we recorded an $83 million long-lived asset impairment loss related to the closure of our acetate flake manufacturing operations in Ocotlán, Mexico, which did not recur in the current year. See Note 12 - Other (Charges) Gains, Net in the accompanying unaudited interim consolidated financial statements for further information.
|
|
Three Months Ended June 30,
|
|
Change
|
|
% Change
|
|
Six Months Ended June 30,
|
|
Change
|
|
% Change
|
||||||||||||
|
2020
|
|
2019
|
|
|
|
2020
|
|
2019
|
|
|
||||||||||||
|
(unaudited)
|
||||||||||||||||||||||
|
(In $ millions, except percentages)
|
||||||||||||||||||||||
Net sales
|
420
|
|
|
593
|
|
|
(173
|
)
|
|
(29.2
|
)%
|
|
983
|
|
|
1,256
|
|
|
(273
|
)
|
|
(21.7
|
)%
|
Net Sales Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Volume
|
(27
|
)%
|
|
|
|
|
|
|
|
(18
|
)%
|
|
|
|
|
|
|
||||||
Price
|
(1
|
)%
|
|
|
|
|
|
|
|
(3
|
)%
|
|
|
|
|
|
|
||||||
Currency
|
(1
|
)%
|
|
|
|
|
|
|
|
(1
|
)%
|
|
|
|
|
|
|
||||||
Other
|
—
|
%
|
|
|
|
|
|
|
|
—
|
%
|
|
|
|
|
|
|
||||||
Other (charges) gains, net
|
(25
|
)
|
|
(8
|
)
|
|
(17
|
)
|
|
(212.5
|
)%
|
|
(25
|
)
|
|
7
|
|
|
(32
|
)
|
|
(457.1
|
)%
|
Operating profit (loss)
|
(13
|
)
|
|
103
|
|
|
(116
|
)
|
|
(112.6
|
)%
|
|
89
|
|
|
247
|
|
|
(158
|
)
|
|
(64.0
|
)%
|
Operating margin
|
(3.1
|
)%
|
|
17.4
|
%
|
|
|
|
|
|
|
9.1
|
%
|
|
19.7
|
%
|
|
|
|
|
|||
Equity in net earnings (loss) of affiliates
|
26
|
|
|
36
|
|
|
(10
|
)
|
|
(27.8
|
)%
|
|
79
|
|
|
82
|
|
|
(3
|
)
|
|
(3.7
|
)%
|
Depreciation and amortization
|
32
|
|
|
31
|
|
|
1
|
|
|
3.2
|
%
|
|
66
|
|
|
63
|
|
|
3
|
|
|
4.8
|
%
|
•
|
lower volume for most of our products driven by a continued deterioration of global economic conditions as a result of the COVID-19 pandemic;
|
•
|
lower pricing for most of our products, primarily due to a continued reduction in customer demand, as well as customer and product mix; and
|
•
|
an unfavorable currency impact resulting from a weaker Euro relative to the US dollar.
|
•
|
lower Net sales;
|
•
|
higher spending costs of $33 million, primarily as a result of plant turnaround activity and associated inventory costs; and
|
•
|
an unfavorable impact of $17 million to Other (charges) gains, net. During the three months ended June 30, 2020, we recorded a $25 million long-lived asset impairment loss related to certain fixed assets used in compounding operations at our facilities in Kaiserslautern, Germany; Wehr, Germany and Ferrara Marconi, Italy, partially offset by lower
|
•
|
lower raw material costs for most of our products.
|
•
|
a decrease in equity investment in earnings of $6 million from our Ibn Sina strategic affiliate, primarily as a result of continued deterioration of global economic conditions.
|
•
|
lower volume for most of our products driven by a continued deterioration of global economic conditions as a result of the COVID-19 pandemic;
|
•
|
lower pricing for most of our products, primarily due to a continued reduction in customer demand, as well as customer and product mix; and
|
•
|
an unfavorable currency impact resulting from a weaker Euro relative to the US dollar.
|
•
|
lower Net sales;
|
•
|
higher spending costs of $40 million, primarily as a result of plant turnaround activity and associated inventory costs; and
|
•
|
an unfavorable impact of $32 million to Other (charges) gains, net. During the six months ended June 30, 2020, we recorded a $25 million long-lived asset impairment loss related to certain fixed assets used in compounding operations at our facilities in Kaiserslautern, Germany; Wehr, Germany and Ferrara Marconi, Italy, partially offset by lower employee termination benefits related to business optimization projects in the current year. During the six months ended June 30, 2019, we also recorded a $15 million gain related to a settlement of a commercial dispute from a previous acquisition, which did not recur in the current year. See Note 12 - Other (Charges) Gains, Net in the accompanying unaudited interim consolidated financial statements for further information;
|
•
|
lower raw material costs for most of our products.
|
|
Three Months Ended June 30,
|
|
Change
|
|
%
Change
|
|
Six Months Ended
June 30, |
|
Change
|
|
%
Change
|
||||||||||||
|
2020
|
|
2019
|
|
|
|
2020
|
|
2019
|
|
|
||||||||||||
|
(unaudited)
|
||||||||||||||||||||||
|
(In $ millions, except percentages)
|
||||||||||||||||||||||
Net sales
|
127
|
|
|
164
|
|
|
(37
|
)
|
|
(22.6
|
)%
|
|
256
|
|
|
330
|
|
|
(74
|
)
|
|
(22.4
|
)%
|
Net Sales Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Volume
|
(18
|
)%
|
|
|
|
|
|
|
|
(17
|
)%
|
|
|
|
|
|
|
||||||
Price
|
(5
|
)%
|
|
|
|
|
|
|
|
(5
|
)%
|
|
|
|
|
|
|
||||||
Currency
|
—
|
%
|
|
|
|
|
|
|
|
—
|
%
|
|
|
|
|
|
|
||||||
Other
|
—
|
%
|
|
|
|
|
|
|
|
—
|
%
|
|
|
|
|
|
|
||||||
Other (charges) gains, net
|
—
|
|
|
(84
|
)
|
|
84
|
|
|
100.0
|
%
|
|
(1
|
)
|
|
(84
|
)
|
|
83
|
|
|
98.8
|
%
|
Operating profit (loss)
|
31
|
|
|
(44
|
)
|
|
75
|
|
|
170.5
|
%
|
|
58
|
|
|
(4
|
)
|
|
62
|
|
|
1,550.0
|
%
|
Operating margin
|
24.4
|
%
|
|
(26.8
|
)%
|
|
|
|
|
|
22.7
|
%
|
|
(1.2
|
)%
|
|
|
|
|
||||
Dividend income - equity investments
|
32
|
|
|
29
|
|
|
3
|
|
|
10.3
|
%
|
|
69
|
|
|
61
|
|
|
8
|
|
|
13.1
|
%
|
Depreciation and amortization
|
9
|
|
|
11
|
|
|
(2
|
)
|
|
(18.2
|
)%
|
|
17
|
|
|
21
|
|
|
(4
|
)
|
|
(19.0
|
)%
|
•
|
lower acetate flake volume, primarily due to the expiration of an acetate flake contract;
|
•
|
lower acetate tow volume, consistent with global demand reduction; and
|
•
|
lower acetate tow pricing, primarily due to customer mix.
|
•
|
a favorable impact of $84 million to Other (charges) gains, net. During the three months ended June 30, 2019, we recorded an $83 million long-lived asset impairment loss related to the closure of our acetate flake manufacturing operations in Ocotlán, Mexico, which did not recur in the current year. See Note 12 - Other (Charges) Gains, Net in the accompanying unaudited interim consolidated financial statements for further information;
|
•
|
lower energy costs of $8 million, primarily related to the closure of our acetate flake manufacturing unit in Ocotlán, Mexico in the prior year; and
|
•
|
lower spending of $5 million, primarily due to a reduction in operating costs as a result of the closure of our acetate flake manufacturing unit in Ocotlán, Mexico in the prior year;
|
•
|
lower Net sales.
|
•
|
lower acetate flake volume, primarily due to the expiration of an acetate flake contract;
|
•
|
lower acetate tow volume, consistent with global demand reduction; and
|
•
|
lower acetate tow pricing, primarily due to customer mix.
|
•
|
a favorable impact of $83 million to Other (charges) gains, net. During the six months ended June 30, 2019, we recorded an $83 million long-lived asset impairment loss related to the closure of our acetate flake manufacturing operations in Ocotlán, Mexico, which did not recur in the current year. See Note 12 - Other (Charges) Gains, Net in the accompanying unaudited interim consolidated financial statements for further information;
|
•
|
lower energy costs of $15 million, primarily related to the closure of our acetate flake manufacturing unit in Ocotlán, Mexico in the prior year; and
|
•
|
lower spending of $4 million, primarily due to a reduction in operating costs due to the closure of our acetate flake manufacturing unit in Ocotlán, Mexico in the prior year;
|
•
|
lower Net sales.
|
•
|
higher earnings from our acetate tow joint ventures related to the expiration of an acetate flake contract, which was assumed by Nantong Cellulose Fibers Co. Ltd.
|
|
Three Months Ended June 30,
|
|
Change
|
|
% Change
|
|
Six Months Ended June 30,
|
|
Change
|
|
% Change
|
||||||||||||
|
2020
|
|
2019
|
|
|
|
2020
|
|
2019
|
|
|
||||||||||||
|
(unaudited)
|
||||||||||||||||||||||
|
(In $ millions, except percentages)
|
||||||||||||||||||||||
Net sales
|
662
|
|
|
865
|
|
|
(203
|
)
|
|
(23.5
|
)%
|
|
1,461
|
|
|
1,754
|
|
|
(293
|
)
|
|
(16.7
|
)%
|
Net Sales Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Volume
|
(14
|
)%
|
|
|
|
|
|
|
|
(9
|
)%
|
|
|
|
|
|
|
||||||
Price
|
(8
|
)%
|
|
|
|
|
|
|
|
(8
|
)%
|
|
|
|
|
|
|
||||||
Currency
|
(1
|
)%
|
|
|
|
|
|
|
|
(1
|
)%
|
|
|
|
|
|
|
||||||
Other
|
—
|
%
|
|
|
|
|
|
|
|
1
|
%
|
|
|
|
|
|
|
||||||
Other (charges) gains, net
|
5
|
|
|
(1
|
)
|
|
6
|
|
|
600.0
|
%
|
|
5
|
|
|
(1
|
)
|
|
6
|
|
|
600.0
|
%
|
Operating profit (loss)
|
121
|
|
|
188
|
|
|
(67
|
)
|
|
(35.6
|
)%
|
|
256
|
|
|
390
|
|
|
(134
|
)
|
|
(34.4
|
)%
|
Operating margin
|
18.3
|
%
|
|
21.7
|
%
|
|
|
|
|
|
|
17.5
|
%
|
|
22.2
|
%
|
|
|
|
|
|||
Depreciation and amortization
|
42
|
|
|
38
|
|
|
4
|
|
|
10.5
|
%
|
|
81
|
|
|
76
|
|
|
5
|
|
|
6.6
|
%
|
•
|
lower volume for most of our products due to a continued global reduction in the customer demand environment as a result of the COVID-19 pandemic, partially offset by higher volume for redispersible powders due to the acquisition of Nouryon's redispersible polymer powders business offered under the Elotex® brand ("Elotex");
|
•
|
lower pricing for most of our products, primarily due to a continued global reduction in the customer demand environment and an overall deflationary environment for raw materials as a result of the COVID-19 pandemic; and
|
•
|
an unfavorable currency impact resulting from a weaker Euro relative to the US dollar.
|
•
|
lower Net sales; and
|
•
|
higher costs of $7 million, primarily related to our acquisition of Elotex;
|
•
|
lower raw material costs, primarily for ethylene, methanol and carbon monoxide, with ethylene making up approximately one-half of the decrease and methanol and carbon monoxide making up the remainder of the decrease in raw material costs;
|
•
|
lower energy costs of $10 million, primarily related to lower energy prices;
|
•
|
a favorable impact of $8 million, primarily related to productivity initiatives; and
|
•
|
a favorable impact of $6 million to Other (charges) gains, net. During the three months ended June 30, 2020, we received a $6 million non-income tax credit from Nanjing, China. See Note 12 - Other (Charges) Gains, Net in the accompanying unaudited interim consolidated financial statements for further information.
|
•
|
lower volume for most of our products due to a continued global reduction in the customer demand environment as a result of the COVID-19 pandemic, partially offset by higher volume for redispersible powders due to our acquisition of Elotex;
|
•
|
lower pricing for most of our products, primarily due to a continued global reduction in the customer demand environment and an overall deflationary environment for raw materials as a result of the COVID-19 pandemic; and
|
•
|
an unfavorable currency impact resulting from a weaker Euro relative to the US dollar.
|
•
|
lower Net sales;
|
•
|
higher plant turnaround costs of $17 million related to our joint venture, Fairway Methanol LLC ("Fairway"); and
|
•
|
higher costs of $13 million, primarily related to our acquisition of Elotex;
|
•
|
lower raw material costs for ethylene, methanol and carbon monoxide, with ethylene making up approximately one-half of the decrease and methanol and carbon monoxide making up the remainder of the decrease in raw material costs;
|
•
|
lower energy costs of $14 million, primarily related to lower energy prices; and
|
•
|
a favorable impact of $6 million to Other (charges) gains, net. During the six months ended June 30, 2020, we received a $6 million non-income tax credit from Nanjing, China. See Note 12 - Other (Charges) Gains, Net in the accompanying unaudited interim consolidated financial statements for further information.
|
|
Three Months Ended June 30,
|
|
Change
|
|
% Change
|
|
Six Months Ended June 30,
|
|
Change
|
|
%
Change
|
||||||||||||
|
2020
|
|
2019
|
|
|
|
2020
|
|
2019
|
|
|
||||||||||||
|
(unaudited)
|
||||||||||||||||||||||
|
(In $ millions, except percentages)
|
||||||||||||||||||||||
Other (charges) gains, net
|
(1
|
)
|
|
(5
|
)
|
|
4
|
|
|
80.0
|
%
|
|
(6
|
)
|
|
(16
|
)
|
|
10
|
|
|
62.5
|
%
|
Operating profit (loss)
|
(56
|
)
|
|
(61
|
)
|
|
5
|
|
|
8.2
|
%
|
|
(126
|
)
|
|
(127
|
)
|
|
1
|
|
|
0.8
|
%
|
Equity in net earnings (loss) of affiliates
|
5
|
|
|
2
|
|
|
3
|
|
|
150.0
|
%
|
|
8
|
|
|
5
|
|
|
3
|
|
|
60.0
|
%
|
Non-operating pension and other postretirement employee benefit (expense) income
|
27
|
|
|
17
|
|
|
10
|
|
|
58.8
|
%
|
|
55
|
|
|
34
|
|
|
21
|
|
|
61.8
|
%
|
Dividend income - equity investments
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
(100.0
|
)%
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
(100.0
|
)%
|
Depreciation and amortization
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
%
|
|
8
|
|
|
7
|
|
|
1
|
|
|
14.3
|
%
|
•
|
a favorable impact of $4 million to Other (charges) gains, net, primarily due to lower employee termination benefits related to business optimization projects in the current year. See Note 12 - Other (Charges) Gains, Net in the accompanying unaudited interim consolidated financial statements for further information.
|
•
|
lower interest cost and higher expected return on plan assets.
|
•
|
a favorable impact of $10 million to Other (charges) gains, net. During the six months ended June 30, 2019, we recorded an $11 million loss related to a settlement by our captive insurer with a former third-party customer, which did not recur in the current year. See Note 12 - Other (Charges) Gains, Net in the accompanying unaudited interim consolidated financial statements for further information;
|
•
|
an unfavorable currency impact of $6 million resulting from a weaker Euro relative to the US dollar.
|
•
|
lower interest cost and higher expected return on plan assets.
|
•
|
Net Cash Provided by (Used in) Operating Activities
|
•
|
a decrease in net earnings;
|
•
|
a decrease in cash taxes paid of $56 million; and
|
•
|
a decrease in incentive compensation payouts of $50 million.
|
•
|
Net Cash Provided by (Used in) Investing Activities
|
•
|
an increase of $63 million in capital expenditures related to growth and productivity improvements in our Engineered Materials and Acetyl Chain segments.
|
•
|
Net Cash Provided by (Used in) Financing Activities
|
•
|
lower share repurchases of our Common Stock of $321 million during the six months ended June 30, 2020; and
|
•
|
an increase in net borrowings on short-term debt of $27 million, due to higher borrowings during the six months ended June 30, 2020 related to us entering into an aggregate of $300 million in short-term, bilateral term loans, which were primarily used to repay borrowings under our outstanding senior unsecured revolving credit facility;
|
•
|
a decrease in net proceeds from long-term debt of $167 million, primarily due to the issuance of $500 million in principal amount of the 3.500% senior unsecured notes due May 8, 2024, partially offset by the redemption of the 3.250% senior unsecured notes, during the six months ended June 30, 2019, which did not recur in the current year.
|
•
|
the duration, scope, severity and geographic spread of the outbreak;
|
•
|
governmental, business and individual actions that have been and continue to be taken in response to the outbreak, including social distancing, work-at-home, stay-at-home and shelter-in-place orders and shutdowns, travel restrictions and quarantines;
|
•
|
the effect of the outbreak on our customers, suppliers, supply chain and other business partners;
|
•
|
our ability during the outbreak to provide our products and services, including the health and well-being of our employees;
|
•
|
business disruptions caused by actual or potential plant, workplace and office closures, and an increased reliance on employees working from home, disruptions to or delays in ongoing laboratory and product testing, experiments and operations, staffing shortages, travel limitations, employee health issues, cyber security and data accessibility, or communication or mass transit disruptions, any of which could adversely impact our business operations or delay necessary interactions with local regulators, manufacturing sites and other important agencies and contractors;
|
•
|
the ability of our customers to pay for our products and services during and following the outbreak;
|
•
|
the impact of the outbreak on the financial markets and economic activity generally;
|
•
|
our ability to access usual sources of liquidity on reasonable terms; and
|
•
|
our ability to comply with the financial covenant in our Credit Agreement if a material and prolonged economic downturn results in increased indebtedness or substantially lower EBITDA.
|
Period
|
|
Total Number
of Shares
Purchased(1)
|
|
Average
Price Paid
per Share
|
|
Total Number of
Shares Purchased as Part of Publicly
Announced Program
|
|
Approximate Dollar
Value of Shares Remaining that may be Purchased Under the Program(2) |
||||||
|
|
(unaudited)
|
||||||||||||
April 1-30, 2020
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
1,063,000,000
|
|
May 1-31, 2020
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
1,063,000,000
|
|
June 1-30, 2020
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
1,063,000,000
|
|
Total
|
|
—
|
|
|
|
|
—
|
|
|
|
(1)
|
May include shares withheld from employees to cover their withholding requirements for personal income taxes related to the vesting of restricted stock.
|
(2)
|
As of June 30, 2020, our Board of Directors has authorized the repurchase of $5.4 billion of our Common Stock since February 2008. On July 15, 2020, the Board of Directors approved a $500 million increase in our Common Stock repurchase authorization.
|
Exhibit
Number
|
|
|
|
Description
|
|
|
|
|
3.1
|
|
|
|
|
|
3.1(a)
|
|
|
|
|
|
3.1(b)
|
|
|
|
|
|
3.1(c)
|
|
|
|
|
|
3.2
|
|
|
|
|
|
10.1*‡
|
|
|
|
|
|
10.2
|
|
|
|
|
|
31.1*
|
|
|
|
|
|
31.2*
|
|
|
|
|
|
32.1*
|
|
|
|
|
|
32.2*
|
|
|
|
|
|
101.INS*
|
|
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
|
101.SCH*
|
|
Inline XBRL Taxonomy Extension Schema Document.
|
|
|
|
101.CAL*
|
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
101.DEF*
|
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
101.LAB*
|
|
Inline XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
101.PRE*
|
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
|
|
104
|
|
The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 has been formatted in Inline XBRL.
|
*
|
Filed herewith.
|
‡
|
Indicates a management contract or compensatory plan or arrangement.
|
(1)
|
The Company and its subsidiaries have in the past issued, and may in the future issue from time to time, long-term debt. The Company may not file with the applicable report copies of the instruments defining the rights of holders of long-term debt to the extent that the aggregate principal amount of the debt instruments of any one series of such debt instruments for which the instruments have not been filed has not exceeded or will not exceed 10% of the assets of the Company at any pertinent time. The Company hereby agrees to furnish a copy of any such instrument(s) to the SEC upon request.
|
|
CELANESE CORPORATION
|
|||
|
|
|
|
|
|
|
By:
|
/s/ LORI J. RYERKERK
|
|
|
|
|
Lori J. Ryerkerk
|
|
|
|
|
Chairman of the Board of Directors,
|
|
|
|
|
Chief Executive Officer and President
|
|
|
|
|
|
|
|
|
|
Date:
|
July 29, 2020
|
|
|
By:
|
/s/ SCOTT A. RICHARDSON
|
|
|
|
|
Scott A. Richardson
|
|
|
|
|
Executive Vice President and
|
|
|
|
|
Chief Financial Officer
|
|
|
|
|
|
|
|
|
|
Date:
|
July 29, 2020
|
|
|
CELANESE CORPORATION
|
|||
|
|
|
|
|
|
|
|
By:
|
/s/ Lori J. Ryerkerk
|
||
|
|
|
Chairman and Chief Executive Officer
|
|
/s/ LORI J. RYERKERK
|
|
|
Lori J. Ryerkerk
|
|
|
Chairman of the Board of Directors,
|
|
|
Chief Executive Officer and President
|
|
|
July 29, 2020
|
|
/s/ SCOTT A. RICHARDSON
|
|
|
Scott A. Richardson
|
|
|
Executive Vice President and
|
|
|
Chief Financial Officer
|
|
|
July 29, 2020
|
|
/s/ LORI J. RYERKERK
|
|
|
Lori J. Ryerkerk
|
|
|
Chairman of the Board of Directors,
|
|
|
Chief Executive Officer and President
|
|
|
July 29, 2020
|
|
/s/ SCOTT A. RICHARDSON
|
|
|
Scott A. Richardson
|
|
|
Executive Vice President and
|
|
|
Chief Financial Officer
|
|
|
July 29, 2020
|