UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 2, 2013
CELANESE CORPORATION
(Exact name of registrant as specified in its charter)
 
 
 
 
 
 
 
 
 
 
DELAWARE
 
001-32410
 
98-0420726
 
 
 
 
 
(State or other jurisdiction
of incorporation)
 
(Commission File
Number)
 
(IRS Employer
Identification No.)
222 West Las Colinas Blvd. Suite 900N, Irving, TX 75039
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code: (972) 443-4000
Not Applicable
(Former name or former address, if changed since last report):
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


1



Item 7.01 Regulation FD Disclosure.
On April 2, 2013, Celanese Corporation (the "Company") issued a press release announcing its election, effective January 1, 2013, to change its accounting policy for recognizing actuarial gains and losses and changes in the fair value of plan assets for its defined benefit pension plans and other postretirement benefit plans. A copy of the press release is furnished with this Current Report as Exhibit 99.1. The Company will immediately recognize in operating results the change in the fair value of plan assets and net actuarial gains and losses annually in the fourth quarter of each fiscal year and whenever a plan is required to be remeasured. The Company believes the new accounting policy is preferable as it eliminates the delay in recognizing gains and losses within operating results. This change will also improve transparency within the Company's operating results by immediately recognizing the effects of economic and interest rate trends on plan investments and assumptions in the year these gains and losses are actually incurred. 
Previously, the Company recognized the actuarial gains and losses on an annual basis and amortized the gains and losses into operating results over the average remaining service period to retirement date for active plan participants or, for retired participants, the average remaining life expectancy. Additionally, differences between actual rates of return on plan assets and the long-term expected rate of return on plan assets were not generally recognized in net periodic benefit cost in the year the difference occurred. These differences were deferred and amortized into net periodic benefit cost over the average remaining future service period of employees.
In connection with the changes in accounting policy for pension and other postretirement benefits and to properly match the actual operational expenses each business segment is incurring, the Company has changed its allocation of net periodic benefit costs. The Company will now allocate only the service cost and amortization of prior service cost components of its pension and postretirement plans to its business segments. All other net periodic benefit cost components will be recorded to Other Activities. The components of net periodic benefit cost that will no longer be allocated to each business segment include interest cost, estimated return on assets and net actuarial gains and losses as these components are considered financing activities managed at the corporate level. The Company believes the revised expense allocation methodology will more appropriately match the cost incurred for active employees to the respective business segment. The policy changes have no impact on future pension and postretirement benefit plan funding or pension and postretirement benefits paid to participants.
Financial information for prior periods has been retrospectively adjusted and is furnished with this Current Report as Exhibit 99.2. Non-GAAP measures used in the Company's quarterly earnings release for prior periods have also been retrospectively adjusted and, along with corresponding reconciliations, are furnished with this Current Report as Exhibit 99.3.

Additionally, in anticipation of a possible change in pension accounting policy, on January 23, 2013, the Company, Celanese US Holdings LLC and Celanese Americas LLC entered into a non-material Amendment No. 1 (the “Amendment”) with the lenders under Celanese US Holdings LLC's existing senior credit facilities with the effect that computations of Consolidated Net Income and EBITDA for covenant compliance purposes will be evaluated as if the change in pension accounting policy had not occurred. The Amendment also amended the credit facilities in other, non-material respects. A copy of the Amendment is attached to this Current Report as Exhibit 10.1 and is incorporated herein by reference in its entirety.

2



Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit
 
Number
Description
 
 
10.1
Amendment No. 1, dated as of January 23, 2013 among Celanese Corporation, Celanese US Holdings LLC, Celanese Americas LLC, the lenders party thereto, and Deutsche Bank AG, New York Branch, as administrative agent and as collateral agent
 
 
99.1
Press Release dated April 2, 2013*
 
 
99.2
Celanese Corporation and Subsidiaries Consolidated Statements of Operations for the years ended December 31, 2012, 2011, 2010, 2009 and 2008 and for the three months ended December 31, 2012 and 2011, September 30, 2012 and 2011, June 30, 2012 and 2011 and March 31, 2012 and 2011 - As Previously Reported and As Adjusted (unaudited)*
 
 
99.3
Celanese Corporation and Subsidiaries Non-GAAP Financial Measures for the years ended December 31, 2012, 2011, 2010, 2009 and 2008 and for the three months ended December 31, 2012 and 2011, September 30, 2012 and 2011, June 30, 2012 and 2011 and March 31, 2012 and 2011 - As Previously Reported and As Adjusted (unaudited)*
*In connection with the disclosure set forth in Item 7.01, the information in this Current Report, including Exhibits 99.1, 99.2 and 99.3 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section. The information in this Current Report, including these exhibits, shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any incorporation by reference language in any such filing. This Current Report will not be deemed an admission as to the materiality of any information in this Current Report that is required to be disclosed solely by Regulation FD.

3



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
CELANESE CORPORATION
 
 
By:
/s/ James R. Peacock III 
 
Name:  
James R. Peacock III 
 
Title:  
Vice President, Deputy General Counsel and Assistant Corporate Secretary 
 
Date: April 2, 2013

4



Exhibit Index
Exhibit
 
Number
Description
 
 
10.1
Amendment No. 1, dated as of January 23, 2013 among Celanese Corporation, Celanese US Holdings LLC, Celanese Americas LLC, the lenders party thereto, and Deutsche Bank AG, New York Branch, as administrative agent and as collateral agent
 
 
99.1
Press Release dated April 2, 2013*
 
 
99.2
Celanese Corporation and Subsidiaries Consolidated Statements of Operations for the years ended December 31, 2012, 2011, 2010, 2009 and 2008 and for the three months ended December 31, 2012 and 2011, September 30, 2012 and 2011, June 30, 2012 and 2011 and March 31, 2012 and 2011 - As Previously Reported and As Adjusted (unaudited)*
 
 
99.3
Celanese Corporation and Subsidiaries Non-GAAP Financial Measures for the years ended December 31, 2012, 2011, 2010, 2009 and 2008 and for the three months ended December 31, 2012 and 2011, September 30, 2012 and 2011, June 30, 2012 and 2011 and March 31, 2012 and 2011 - As Previously Reported and As Adjusted (unaudited)*
* In connection with the disclosure set forth in Item 7.01, the information in this Current Report, including Exhibits 99.1, 99.2 and 99.3 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section. The information in this Current Report, including these exhibits, shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any incorporation by reference language in any such filing. This Current Report will not be deemed an admission as to the materiality of any information in this Current Report that is required to be disclosed solely by Regulation FD.



5


Exhibit 10.1

AMENDMENT NO. 1 (this “ Amendment ”), dated as of January 23, 2013, among CELANESE CORPORATION, a Delaware corporation (“ Holdings ”), CELANESE US HOLDINGS LLC, a Delaware limited liability company (the “ Company ”), CELANESE AMERICAS LLC (f/k/a Celanese Americas Corporation), a Delaware limited liability company (“ CALLC ”), the Lenders party hereto, and DEUTSCHE BANK AG, NEW YORK BRANCH (“ DBNY ”), as administrative agent and as collateral agent, to the Amended and Restated Credit Agreement, dated as of April 2, 2007, as amended and restated as of September 29, 2010 (as amended, supplemented, amended and restated or otherwise modified prior to the date hereof, the “ Credit Agreement ”), among Holdings, the Company, CALLC, DBNY and the other parties thereto from time to time. Capitalized terms used and not otherwise defined herein shall have the meanings assigned to them in the Credit Agreement.
WHEREAS, Holdings is considering a change in accounting policy to immediately recognize its pension gains and losses as permitted under Financial Accounting Standards Board Accounting Standards Codification Topic 715-30-35-20 or any similar pronouncement effective as of January 1, 2013, which changes are not anticipated to have any cash impact as compared to the current pension accounting policy;
WHEREAS, the Loan Parties and Required Lenders wish to make certain amendments to the Credit Agreement authorized by Section 9.08 of the Credit Agreement as set forth in Section 1 below;
NOW, THEREFORE, in consideration of the premises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:
Section 1. Amendments .
Effective as of the Amendment No. 1 Effective Date (as defined below), the Required Lenders hereby agree as follows:
(a) Section 1.01 shall be amended to add the following defined term after the definition of “Amendment Agreement” and before the definition of “Applicable CL Margin”:
Amendment No. 1 ” shall mean Amendment No.1 to this Agreement dated as of January 23, 2013 among Holdings, the Company, CALLC, DBNY and the Required Lenders.
(b) Section 1.01 shall be amended to add the following defined term after the definition of “Margin Stock” and before the definition of “Material Adverse Effect”:
Mark-to-Market Pension Accounting ” shall mean that pension gains and losses are immediately recognized as permitted under Financial Accounting Standards Board Accounting Standards Codification Topic 715-30-35-20 or any similar pronouncement.
(c) The following shall be added as a new paragraph at the end of the definition of “Consolidated Net Income” in Section 1.01:
Any effects from the election by Holdings and its Subsidiaries of Mark-to-Market Pension Accounting as compared to Holdings' and its Subsidiaries' pension accounting policy immediately preceding the election of Mark-to-Market Pension Accounting and the effectiveness of Amendment No. 1 shall be excluded from the calculation of “Consolidated Net Income”, including, without limitation, for any historical periods that are covered by historical financial statements of Holdings and its Subsidiaries that are restated to give effect to such election, and, solely to the extent such restatement is caused by such election, such restatement shall be deemed not to result in a Default or Event of Default under this Agreement.

1



(d) The following shall be added as a new paragraph at the end of the definition of “EBITDA” in Section 1.01:
Any effects resulting from the election of Holdings and its Subsidiaries of Mark-to-Market Pension Accounting as compared to Holdings' and its Subsidiaries' pension accounting policy immediately preceding the election of Mark-to-Market Pension Accounting and the effectiveness of Amendment No. 1 shall be excluded from the calculation of “EBITDA”, including, without limitation, for any historical periods that are covered by historical financial statements of Holdings and its Subsidiaries that are restated to give effect to such election, and, solely to the extent such restatement is caused by such election, such restatement shall be deemed not to result in a Default or Event of Default under this Agreement.
(e) The definition of “Excluded Indebtedness” in Section 1.01 is amended to delete the phrase “(other than Section 6.01(o))”.
(f) The definition of “Finco” in Section 1.01 is amended and restated in its entirety as follows:
Finco ” means Celanese International Holdings Luxembourg S.à r.l.
(g) The last sentence of the definition of “Indebtedness” in Section 1.01 is amended to (1) replace “FIN 46” with “ASC 810-10” and (2) replace “EITF 01-8” with “ASC 840-10 or ASC 840-40”.
(h) The definition of “Loan Documents” in Section 1.01 is amended to insert “Amendment No. 1,” after “the Amendment Agreement,” and before “the Letters of Credit,…”.
(i) Clause (e) of Section 5.04 is amended to add, after the phrase “without such changes” and before the semi-colon at the end thereof, the phrase “, provided that, with respect to the election by Holdings and its Subsidiaries concerning Mark-to-Market Pension Accounting, this clause (e) shall require, from time to time (but no more frequently than quarterly) after such election, upon the request of the Administrative Agent, or any Lender requesting through the Administrative Agent, the delivery by Holdings to the Administrative Agent of a reconciliation of the pension accounting reflected in the calculation of Consolidated Net Income and EBITDA pursuant to the last paragraph of each such definition in Section 1.01 of this Agreement to the Mark-To-Market Pension Accounting reflected in any financial statements delivered under Section 5.04(a) of this Agreement”.
(j) Clauses (l)(i) and (m)(ii) of Section 6.01 are amended to add “Holdings,” after “by” and before “the Company…”.
(k) Clause (o) of Section 6.01 is amended to delete “; provided that the proceeds thereof are applied in accordance with Section 2.11(c)”.
(l) The sentence immediately following clause (x) of Section 6.01 is amended to add “(f), (k), (l), ” after “6.01(b),” and before “(m)”.
(m) Clause (a) of Section 6.04 is amended to replace the references to “the Borrowers” or “any Borrower” with “Holdings, the Borrowers” and “Holdings, any Borrower”, respectively.
(n) Clause (v) of Section 6.04 is amended to insert “and/or any other Domestic Loan Party” at the end of such clause in front of the “;”.
Section 2. Representations and Warranties . The Company and Holdings, jointly and severally, represent and warrant to the Administrative Agent and each of the Lenders that:
(a) The execution and delivery of this Amendment is within each of the Company's and Holdings' organizational powers and has been duly authorized by all necessary organizational action on the part of each of the Company and Holdings. This Amendment has been duly executed and delivered by each

2



of the Company and Holdings and constitutes, a legal, valid and binding obligation of each of the Company and Holdings, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency or similar laws affecting creditors' rights generally, subject to general principles of equity and subject to implied covenants of good faith and fair dealing. This Amendment will not violate any Requirement of Law in any material respect, will not violate or result in a default or require any consent or approval under any indenture, agreement or other instrument binding upon any Loan Party or its property, or give rise to a right thereunder to require any payment to be made by any Loan Party, except in each case for violations, defaults or the creation of such rights that would not reasonably be expected to result in a Material Adverse Effect.
(b) After giving effect to this Amendment, the representations and warranties set forth in Article III of the Credit Agreement or in any other Loan Document are true and correct in all material respects (except where such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date).
(c) After giving effect to this Amendment, no Default or Event of Default has occurred and is continuing.
Section 3. Effectiveness . This Amendment shall become effective on the date (the “ Amendment No. 1 Effective Date ”) on which (i) the Administrative Agent shall have received counterparts of this Amendment executed by the Company, Holdings, CALLC, DBNY, and the Required Lenders and (ii) each of the following conditions shall have been satisfied in accordance with the terms thereof:
(a) the representations and warranties set forth in Section 2 hereof shall be true and correct as of the Amendment No. 1 Effective Date; and
(b) the Company shall have paid all reasonable out of pocket costs and expenses of the Administrative Agent in connection with the preparation, negotiation and execution of this Amendment (including the reasonable fees and expenses of Cahill Gordon & Reindel llp as counsel to the Administrative Agent).
Section 4. Counterparts . This Amendment may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of which when so executed and delivered shall be deemed to be an original, but all of which when taken together shall constitute a single instrument. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or any other electronic transmission shall be effective as delivery of a manually executed counterpart hereof.
Section 5. Applicable Law . THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
Section 6. Headings . The headings of this Amendment are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.
Section 7. Effect of Amendment . Except as expressly set forth herein, (i) this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Lenders, the Administrative Agent, the Collateral Agent, any other Agent, the Issuing Bank or the Swingline Lender, in each case under the Credit Agreement or any other Loan Document, and (ii) shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other provision of either such agreement or any other Loan Document. Except as expressly set forth herein, each and every term, condition, obligation, covenant and agreement contained in the Credit Agreement or any other Loan Document is hereby ratified and re-affirmed in all respects and shall continue in full force and effect. Each Loan Party reaffirms its obligations under the Loan Documents to which it is party

3



and the validity of the Liens granted by it pursuant to the Security Documents. This Amendment shall constitute a Loan Document for purposes of the Credit Agreement and from and after the Amendment No. 1 Effective Date, all references to the Credit Agreement in any Loan Document and all references in the Credit Agreement to “this Agreement,” “hereunder,” “hereof” or words of like import referring to the Credit Agreement, shall, unless expressly provided otherwise, refer to the Credit Agreement as amended by this Amendment. Each of the Loan Parties hereby consents to this Amendment and confirms that all obligations of such Loan Party under the Loan Documents to which such Loan Party is a party shall continue to apply to the Credit Agreement as amended by this Amendment.
[Remainder of page intentionally left blank]

4




IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective authorized officers as of the day and year first above written.

 
CELANESE CORPORATION
 
 
 
 
 
By:
 
/s/ Christopher Jensen
 
 
 
Name: Christopher Jensen
 
 
 
Title: Senior VP - Finance
 
 
 
 
 
CELANESE US HOLDINGS LLC
 
 
 
 
 
By:
 
/s/ Chuck B. Kyrish
 
 
 
Name: Chuck B. Kyrish
 
 
 
Title: Vice President and Treasurer
 
 
 
 
 
CELANESE AMERICAS LLC ( f/k/a Celanese Americas Corporation)
 
 
 
 
 
By:
 
/s/ Chuck B. Kyrish
 
 
 
Name: Chuck B. Kyrish
 
 
 
Title: Vice President and Treasurer
 
 
 
 















[Signature Page to Amendment]

5




 
DEUTSCHE BANK AG, NEW YORK BRANCH, as Administrative Agent, Joint Lead Arranger, Joint Book Runner and as a Lender
 
 
 
 
By:
/s/ Marcus M. Tarkington
 
 
Name: Marcus M. Tarkington
 
 
Title: Director
 
 
 
 
By:
 
/s/ Michael Getz
 
 
 
Name: Michael Getz
 
 
 
Title: Vice President
 
 
 





























[Signature Page to Amendment]

6




Consenting as a  Lender :
[INSERT NAME OF LENDER]
 
By:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
[SECOND SIGNATURE BLOCK IF NEEDED]
 
By:
 
 
 
 
 
 
 
 
 
 
 








































[Form of Consenting Lender Signature Page to Amendment]

7


Exhibit 99.1
 
Celanese Corporation
 
222 West Las Colinas Blvd.
 
Suite 900N
 
Irving, Texas 75039

Celanese Corporation Announces Change in Pension Accounting
Dallas, April 2, 2013: Celanese Corporation (NYSE: CE), a global technology and specialty materials company, today announced its plans to change its accounting policy for its defined benefit pension plans and other postretirement benefit plans (collectively, "Plans"). Under the new accounting policy, referred to as mark-to-market ("MTM") accounting, the company will recognize actuarial gains and losses and changes in the fair value of the Plans' assets in operating results in the fourth quarter of each year rather than deferring and amortizing them into future years. This change is effective January 1, 2013 and is retrospectively applied to the company's financial results for all periods presented in its Current Report on Form 8-K submitted today.
"We believe this accounting change will provide investors with greater transparency into our operating results and will allow investors to better evaluate our underlying operating performance since our Plans' investment gains and losses as well as interest rate changes will be recognized in the year in which they occur, rather than amortizing them over future periods. This accounting policy change will not impact benefits received by participants of these Plans or related funding obligations," said Steven Sterin, chief financial officer.
As a result of the retrospective application of this change in accounting policy, Celanese earnings per share from continuing operations for 2012 decreased from $3.81 to $2.35 primarily due to the fourth quarter MTM adjustment of $389 million. Excluding the MTM adjustment, Celanese adjusted earnings per share for 2012 increased from $3.80 to $4.07 on lower amortization of prior period actuarial losses of $53 million.
The company does not expect the retrospective application of this change in accounting policy to impact the company's previously communicated growth rate for adjusted earnings per share in 2013.
In connection with this change in accounting policy and to properly reflect actual operational expenses of each business segment, the company will change its allocation of net periodic benefit costs. The company will now allocate only the service cost for active employees and amortization of prior service cost components of its Plans to its business segments. All other net periodic benefit cost components will be recorded as Other Activities. The components of net periodic benefit cost that will no longer be allocated to each business segment include interest cost, estimated return on assets and net actuarial gains and losses as these components are considered financing activities managed at the corporate level. The company believes the revised expense allocation will more appropriately match the cost incurred for active employees to the respective business segment.
Contacts:
 
 
 
 
Investor Relations
 
Media - U.S.
 
Media - Europe
Jon Puckett
 
Linda Beheler
 
Jens Kurth
Phone: +1 972 443 4965
 
Phone: +1 972 443 4924
 
Phone: +49(0)69 45009 1574
Telefax: +1 972 443 8519
 
Telefax: +1 972 443 8519
 
Telefax: +49(0) 45009 58800
Jon.Puckett@celanese.com
 
Linda.Beheler@celanese.com
 
J.Kurth@celanese.com
Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. With sales almost equally divided between North America, Europe and Asia, the company uses the full breadth of its global chemistry, technology and business expertise to create value

EX 99.1 - 1



for customers and the corporation. Celanese partners with customers to solve their most critical needs while making a positive impact on its communities and the world. Based in Dallas, Texas, Celanese employs approximately 7,600 employees worldwide and had 2012 net sales of $6.4 billion. For more information about Celanese Corporation and its product offerings, visit www.celanese.com or our blog at www.celaneseblog.com
Forward-Looking Statements
This release may contain “forward-looking statements,” which include information concerning the company's plans, objectives, goals, strategies, future revenues or performance, capital expenditures, financing needs and other information that is not historical information. When used in this release, the words “outlook,” “forecast,” “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “may,” “can,” “could,” “might,” “will” and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon current expectations and beliefs and various assumptions. There can be no assurance that the company will realize these expectations or that these beliefs will prove correct.
There are a number of risks and uncertainties that could cause actual results to differ materially from the results expressed or implied in the forward-looking statements contained in this release. These risks and uncertainties include, among other things: 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, 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 carbon monoxide 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 and expansions; the ability to improve productivity by implementing technological improvements to existing plants; increased price competition and the introduction of competing products by other companies; market acceptance of our technology; the ability to obtain governmental approvals and to construct facilities on terms and schedules acceptable to the company; changes in the degree of intellectual property and other legal protection afforded to our products or technology, or the theft of such intellectual property; compliance and other costs and potential disruption or interruption of production or operations due to accidents, cyber security incidents, terrorism or political unrest or other unforeseen events or delays in construction or operation of facilities, including as a result of geopolitical conditions, including the occurrence of acts of war or terrorist incidents or as a result of weather or natural disasters; 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 litigation, 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 discussed from time to time in the company's filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made, and the company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances.
Reconciliation of Non-U.S. GAAP Measures to U.S. GAAP
This release reflects the following performance measure: adjusted earnings per share as a non-U.S. GAAP measure. This measurement is not recognized in accordance with U.S. GAAP and should not be viewed as an alternative to U.S. GAAP measure of performance. The most directly comparable financial measure presented in accordance with U.S. GAAP in our consolidated financial statements for adjusted earnings per share is earnings per common share-diluted.
Use of Non-U.S. GAAP Financial Information
Adjusted earnings per share is a measure used by management to measure performance. It is defined by the company as earnings (loss) from continuing operations, adjusted for other charges and other adjustments, and divided by the number of basic common shares, convertible preferred shares and dilutive restricted stock units and stock options calculated using the treasury method. We may provide guidance on an adjusted earnings per share basis and are unable to reconcile forecasted adjusted earnings per share to a U.S. GAAP financial measure without unreasonable effort because a forecast of other charges and other adjustments is not practical. We believe that the presentation of this non-U.S. GAAP measure provides useful information to management and investors regarding various financial and business trends relating to our financial condition and results of operations, and that when U.S. GAAP information is viewed in conjunction with non-U.S. GAAP information, investors are provided with a more meaningful understanding of our ongoing operating performance. Note: The income tax rate used for adjusted earnings per share approximates the midpoint in a range of forecasted tax rates for the year. This range may include certain partial or full-year forecasted tax opportunities, where applicable, and specifically excludes changes in uncertain tax positions, discrete items and other material items adjusted out of our U.S. GAAP earnings for adjusted earnings per share purposes, and changes in management's assessments regarding the ability to realize deferred tax assets. We analyze this rate quarterly and adjust if there is a material change in the range of forecasted tax rates; an updated forecast would not necessarily result in a change to our tax rate used for adjusted earnings per share. The adjusted tax rate is an estimate and may differ from the tax rate used for U.S. GAAP reporting in any given reporting period. It is not practical to reconcile our prospective adjusted tax rate to the actual U.S. GAAP tax rate in any given future period.
Results Unaudited
The results presented in this release, together with the adjustments made to present the results on a comparable basis, have not been audited and are based on internal financial data furnished to management. Quarterly results should not be taken as an indication of the results of operations to be reported for any subsequent period or for the full fiscal year.

EX 99.1 - 2



Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
 
Year Ended December 31, 2012
 
As Previously Reported
 
Effect of Change
 
As Adjusted
 
 
 
per
share
 
 
 
per
share
 
 
 
per
share
 
(In $ millions, except per share data)
Earnings (loss) from continuing operations
609

 
3.81

 
(233
)
 
(1.46
)
 
376

 
2.35

Deduct: Income tax (provision) benefit
(48
)
 
 
 
103

 
 
 
55

 
 
Earnings (loss) from continuing operations before tax
657

 
 
 
(336
)
 
 
 
321

 
 
Other charges and other adjustments (1)
66

 
 
 
389

 
 
 
455

 
 
Refinancing and related expenses
8

 
 
 

 
 
 
8

 
 
Adjusted earnings (loss) from continuing operations before tax
731

 
 
 
53

 
 
 
784

 
 
Income tax (provision) benefit on adjusted earnings (2)
(124
)
 
 
 
(9
)
 
 
 
(133
)
 
 
Noncontrolling interests

 
 
 

 
 
 

 
 
Adjusted earnings (loss) from continuing operations (3)
607

 
3.80

 
44

 
0.27

 
651

 
4.07

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted shares (in millions) (4)
Weighted average shares outstanding
158.3

 
 
 

 
 
 
158.3

 
 
Dilutive stock options
0.9

 
 
 

 
 
 
0.9

 
 
Dilutive restricted stock units
0.6

 
 
 

 
 
 
0.6

 
 
Total diluted shares
159.8

 
 
 

 
 
 
159.8

 
 
______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
The adjusted effective tax rate is 17% for the year ended December 31, 2012.
(3)  
The As adjusted amount excludes the immediate recognition of actuarial gains and losses and the impact of actual plan asset returns of 13.1% vs. expected plan asset returns of 8.06%.
(4)  
Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net:
Year Ended December 31, 2012
 
 
 
(In $ millions)
 
 
Employee termination benefits
6

 
 
Kelsterbach plant relocation
7

 
 
Plumbing actions
(5
)
 
 
Asset impairments
8

 
 
Commercial disputes
(2
)
 
 
Total
14

 
 
 
 
 
 
Other Adjustments: ( 1)
Year Ended December 31, 2012
 
Income Statement Classification
 
(In $ millions)
 
 
Business optimization
9

 
SG&A
Kelsterbach plant relocation
14

 
Cost of sales
Plant closures
21

 
Cost of sales / SG&A
(Gain) loss on disposition of assets
1

 
(Gain) loss on disposition
Acetate production interruption costs
10

 
Cost of sales
InfraServ Hoechst debt restructuring
(22
)
 
Equity in net (earnings) loss of affiliates
Actuarial (gain) loss on pension and postretirement plans
389

 
Cost of sales / SG&A / R&D
Other
19

 
Various
Total
441

 
 
Total other charges and other adjustments
455

 
 
______________________________
(1)  
These items are included in net earnings but not included in Other charges (gains), net.

EX 99.1 - 3


Exhibit 99.2
This exhibit provides additional information concerning the implications, on a historic basis, of the Company's change in its accounting policy for pension accounting.
CELANESE CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
 
Year Ended December 31, 2012
 
As Previously Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions, except share and per share data)
Net sales
6,418

 

 
6,418

Cost of sales
(5,226
)
 
(11
)
 
(5,237
)
Gross profit
1,192

 
(11
)
 
1,181

Selling, general and administrative expenses
(507
)
 
(323
)
 
(830
)
Amortization of intangible assets
(51
)
 

 
(51
)
Research and development expenses
(102
)
 
(2
)
 
(104
)
Other (charges) gains, net
(14
)
 

 
(14
)
Foreign exchange gain (loss), net
(4
)
 

 
(4
)
Gain (loss) on disposition of businesses and assets, net
(3
)
 

 
(3
)
Operating profit (loss)
511

 
(336
)
 
175

Equity in net earnings (loss) of affiliates
242

 

 
242

Interest expense
(185
)
 

 
(185
)
Refinancing expense
(3
)
 

 
(3
)
Interest income
2

 

 
2

Dividend income - cost investments
85

 

 
85

Other income (expense), net
5

 

 
5

Earnings (loss) from continuing operations before tax
657

 
(336
)
 
321

Income tax (provision) benefit
(48
)
 
103

 
55

Earnings (loss) from continuing operations
609

 
(233
)
 
376

Earnings (loss) from operation of discontinued operations
(6
)
 

 
(6
)
Gain (loss) on disposition of discontinued operations

 

 

Income tax (provision) benefit from discontinued operations
2

 

 
2

Earnings (loss) from discontinued operations
(4
)
 

 
(4
)
Net earnings (loss)
605

 
(233
)
 
372

Net (earnings) loss attributable to noncontrolling interests

 

 

Net earnings (loss) attributable to Celanese Corporation
605

 
(233
)
 
372

Cumulative preferred stock dividends

 

 

Net earnings (loss) available to common stockholders
605

 
(233
)
 
372

Amounts attributable to Celanese Corporation
 
 
 

 
 
Earnings (loss) from continuing operations
609

 
(233
)
 
376

Earnings (loss) from discontinued operations
(4
)
 

 
(4
)
Net earnings (loss)
605

 
(233
)
 
372

Earnings (loss) per common share - basic
 

 
 

 
 
Continuing operations
3.84

 
(1.47
)
 
2.37

Discontinued operations
(0.02
)
 

 
(0.02
)
Net earnings (loss) - basic
3.82

 
(1.47
)
 
2.35

Earnings (loss) per common share - diluted
 

 
 

 
 
Continuing operations
3.81

 
(1.46
)
 
2.35

Discontinued operations
(0.02
)
 

 
(0.02
)
Net earnings (loss) - diluted
3.79

 
(1.46
)
 
2.33

Weighted average shares - basic
158,359,914

 

 
158,359,914

Weighted average shares - diluted
159,830,786

 

 
159,830,786


EX 99.2 - 1



CELANESE CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
 
Year Ended December 31, 2011
 
As Previously Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions, except share and per share data)
Net sales
6,763

 

 
6,763

Cost of sales
(5,329
)
 
(17
)
 
(5,346
)
Gross profit
1,434

 
(17
)
 
1,417

Selling, general and administrative expenses
(536
)
 
(269
)
 
(805
)
Amortization of intangible assets
(62
)
 

 
(62
)
Research and development expenses
(96
)
 
(2
)
 
(98
)
Other (charges) gains, net
(48
)
 

 
(48
)
Foreign exchange gain (loss), net

 

 

Gain (loss) on disposition of businesses and assets, net
(2
)
 

 
(2
)
Operating profit (loss)
690

 
(288
)
 
402

Equity in net earnings (loss) of affiliates
192

 

 
192

Interest expense
(221
)
 

 
(221
)
Refinancing expense
(3
)
 

 
(3
)
Interest income
3

 

 
3

Dividend income - cost investments
80

 

 
80

Other income (expense), net
14

 

 
14

Earnings (loss) from continuing operations before tax
755

 
(288
)
 
467

Income tax (provision) benefit
(149
)
 
108

 
(41
)
Earnings (loss) from continuing operations
606

 
(180
)
 
426

Earnings (loss) from operation of discontinued operations
2

 

 
2

Gain (loss) on disposition of discontinued operations

 

 

Income tax (provision) benefit from discontinued operations
(1
)
 

 
(1
)
Earnings (loss) from discontinued operations
1

 

 
1

Net earnings (loss)
607

 
(180
)
 
427

Net (earnings) loss attributable to noncontrolling interests

 

 

Net earnings (loss) attributable to Celanese Corporation
607

 
(180
)
 
427

Cumulative preferred stock dividends

 

 

Net earnings (loss) available to common stockholders
607

 
(180
)
 
427

Amounts attributable to Celanese Corporation
 
 
 

 
 
Earnings (loss) from continuing operations
606

 
(180
)
 
426

Earnings (loss) from discontinued operations
1

 

 
1

Net earnings (loss)
607

 
(180
)
 
427

Earnings (loss) per common share - basic
 

 
 

 
 

Continuing operations
3.88

 
(1.16
)
 
2.72

Discontinued operations
0.01

 

 
0.01

Net earnings (loss) - basic
3.89

 
(1.16
)
 
2.73

Earnings (loss) per common share - diluted
 

 
 

 
 

Continuing operations
3.81

 
(1.13
)
 
2.68

Discontinued operations
0.01

 

 
0.01

Net earnings (loss) - diluted
3.82

 
(1.13
)
 
2.69

Weighted average shares - basic
156,226,526

 

 
156,226,526

Weighted average shares - diluted
158,970,283

 

 
158,970,283


EX 99.2 - 2



CELANESE CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
 
Year Ended December 31, 2010
 
As Previously Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions, except share and per share data)
Net sales
5,918

 

 
5,918

Cost of sales
(4,738
)
 
(12
)
 
(4,750
)
Gross profit
1,180

 
(12
)
 
1,168

Selling, general and administrative expenses
(505
)
 
(93
)
 
(598
)
Amortization of intangible assets
(61
)
 

 
(61
)
Research and development expenses
(70
)
 

 
(70
)
Other (charges) gains, net
(46
)
 

 
(46
)
Foreign exchange gain (loss), net
(3
)
 

 
(3
)
Gain (loss) on disposition of businesses and assets, net
8

 

 
8

Operating profit (loss)
503

 
(105
)
 
398

Equity in net earnings (loss) of affiliates
168

 

 
168

Interest expense
(204
)
 

 
(204
)
Refinancing expense
(16
)
 

 
(16
)
Interest income
7

 

 
7

Dividend income - cost investments
73

 

 
73

Other income (expense), net
7

 

 
7

Earnings (loss) from continuing operations before tax
538

 
(105
)
 
433

Income tax (provision) benefit
(112
)
 
40

 
(72
)
Earnings (loss) from continuing operations
426

 
(65
)
 
361

Earnings (loss) from operation of discontinued operations
(80
)
 

 
(80
)
Gain (loss) on disposition of discontinued operations
2

 

 
2

Income tax (provision) benefit from discontinued operations
29

 

 
29

Earnings (loss) from discontinued operations
(49
)
 

 
(49
)
Net earnings (loss)
377

 
(65
)
 
312

Net (earnings) loss attributable to noncontrolling interests

 

 

Net earnings (loss) attributable to Celanese Corporation
377

 
(65
)
 
312

Cumulative preferred stock dividends
(3
)
 

 
(3
)
Net earnings (loss) available to common stockholders
374

 
(65
)
 
309

Amounts attributable to Celanese Corporation
 
 
 

 
 
Earnings (loss) from continuing operations
426

 
(65
)
 
361

Earnings (loss) from discontinued operations
(49
)
 

 
(49
)
Net earnings (loss)
377

 
(65
)
 
312

Earnings (loss) per common share - basic
 

 
 

 
 

Continuing operations
2.73

 
(0.42
)
 
2.31

Discontinued operations
(0.31
)
 

 
(0.31
)
Net earnings (loss) - basic
2.42

 
(0.42
)
 
2.00

Earnings (loss) per common share - diluted
 

 
 

 
 

Continuing operations
2.69

 
(0.41
)
 
2.28

Discontinued operations
(0.31
)
 

 
(0.31
)
Net earnings (loss) - diluted
2.38

 
(0.41
)
 
1.97

Weighted average shares - basic
154,577,441

 

 
154,577,441

Weighted average shares - diluted
158,385,497

 

 
158,385,497


EX 99.2 - 3



CELANESE CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
 
Year Ended December 31, 2009
 
As Previously Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions, except share and per share data)
Net sales
5,082

 

 
5,082

Cost of sales
(4,079
)
 
(16
)
 
(4,095
)
Gross profit
1,003

 
(16
)
 
987

Selling, general and administrative expenses
(474
)
 
(127
)
 
(601
)
Amortization of intangible assets
(77
)
 

 
(77
)
Research and development expenses
(70
)
 
(3
)
 
(73
)
Other (charges) gains, net
(136
)
 

 
(136
)
Foreign exchange gain (loss), net
2

 

 
2

Gain (loss) on disposition of businesses and assets, net
42

 

 
42

Operating profit (loss)
290

 
(146
)
 
144

Equity in net earnings (loss) of affiliates
99

 

 
99

Interest expense
(207
)
 

 
(207
)
Refinancing expense

 

 

Interest income
8

 

 
8

Dividend income - cost investments
57

 

 
57

Other income (expense), net
4

 

 
4

Earnings (loss) from continuing operations before tax
251

 
(146
)
 
105

Income tax (provision) benefit
243

 
51

 
294

Earnings (loss) from continuing operations
494

 
(95
)
 
399

Earnings (loss) from operation of discontinued operations
6

 

 
6

Gain (loss) on disposition of discontinued operations

 

 

Income tax (provision) benefit from discontinued operations
(2
)
 

 
(2
)
Earnings (loss) from discontinued operations
4

 

 
4

Net earnings (loss)
498

 
(95
)
 
403

Net (earnings) loss attributable to noncontrolling interests

 

 

Net earnings (loss) attributable to Celanese Corporation
498

 
(95
)
 
403

Cumulative preferred stock dividends
(10
)
 

 
(10
)
Net earnings (loss) available to common stockholders
488

 
(95
)
 
393

Amounts attributable to Celanese Corporation
 
 
 

 
 
Earnings (loss) from continuing operations
494

 
(95
)
 
399

Earnings (loss) from discontinued operations
4

 

 
4

Net earnings (loss)
498

 
(95
)
 
403

Earnings (loss) per common share - basic
 

 
 

 
 

Continuing operations
3.37

 
(0.66
)
 
2.71

Discontinued operations
0.03

 

 
0.03

Net earnings (loss) - basic
3.40

 
(0.66
)
 
2.74

Earnings (loss) per common share - diluted
 

 
 

 
 

Continuing operations
3.14

 
(0.60
)
 
2.54

Discontinued operations
0.03

 

 
0.03

Net earnings (loss) - diluted
3.17

 
(0.60
)
 
2.57

Weighted average shares - basic
143,697,904

 

 
143,697,904

Weighted average shares - diluted
157,124,676

 

 
157,124,676



EX 99.2 - 4



CELANESE CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
 
Year Ended December 31, 2008
 
As Previously Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions, except share and per share data)
Net sales
6,823

 

 
6,823

Cost of sales
(5,567
)
 
(52
)
 
(5,619
)
Gross profit
1,256

 
(52
)
 
1,204

Selling, general and administrative expenses
(545
)
 
(486
)
 
(1,031
)
Amortization of intangible assets
(76
)
 

 
(76
)
Research and development expenses
(75
)
 
(9
)
 
(84
)
Other (charges) gains, net
(108
)
 

 
(108
)
Foreign exchange gain (loss), net
(4
)
 

 
(4
)
Gain (loss) on disposition of businesses and assets, net
(8
)
 

 
(8
)
Operating profit (loss)
440

 
(547
)
 
(107
)
Equity in net earnings (loss) of affiliates
172

 

 
172

Interest expense
(261
)
 

 
(261
)
Refinancing expense

 

 

Interest income
31

 

 
31

Dividend income - cost investments
48

 

 
48

Other income (expense), net
3

 

 
3

Earnings (loss) from continuing operations before tax
433

 
(547
)
 
(114
)
Income tax (provision) benefit
(63
)
 
5

 
(58
)
Earnings (loss) from continuing operations
370

 
(542
)
 
(172
)
Earnings (loss) from operation of discontinued operations
(120
)
 

 
(120
)
Gain (loss) on disposition of discontinued operations
6

 

 
6

Income tax (provision) benefit from discontinued operations
24

 

 
24

Earnings (loss) from discontinued operations
(90
)
 

 
(90
)
Net earnings (loss)
280

 
(542
)
 
(262
)
Net (earnings) loss attributable to noncontrolling interests
1

 

 
1

Net earnings (loss) attributable to Celanese Corporation
281

 
(542
)
 
(261
)
Cumulative preferred stock dividends
(10
)
 

 
(10
)
Net earnings (loss) available to common stockholders
271

 
(542
)
 
(271
)
Amounts attributable to Celanese Corporation
 
 
 

 
 
Earnings (loss) from continuing operations
371

 
(542
)
 
(171
)
Earnings (loss) from discontinued operations
(90
)
 

 
(90
)
Net earnings (loss)
281

 
(542
)
 
(261
)
Earnings (loss) per common share - basic
 

 
 

 
 

Continuing operations
2.44

 
(3.66
)
 
(1.22
)
Discontinued operations
(0.61
)
 

 
(0.61
)
Net earnings (loss) - basic
1.83

 
(3.66
)
 
(1.83
)
Earnings (loss) per common share - diluted
 

 
 

 
 

Continuing operations
2.27

 
(3.49
)
 
(1.22
)
Discontinued operations
(0.55
)
 
(0.06
)
 
(0.61
)
Net earnings (loss) - diluted
1.72

 
(3.55
)
 
(1.83
)
Weighted average shares - basic
148,355,615

 

 
148,355,615

Weighted average shares - diluted
163,477,215

 
(15,121,600
)
 
148,355,615




EX 99.2 - 5



CELANESE CORPORATION AND SUBSIDIARIES
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
 
Three Months Ended December 31, 2012
 
As Previously Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions, except share and per share data)
Net sales
1,501

 

 
1,501

Cost of sales
(1,234
)
 
(23
)
 
(1,257
)
Gross profit
267

 
(23
)
 
244

Selling, general and administrative expenses
(128
)
 
(348
)
 
(476
)
Amortization of intangible assets
(13
)
 

 
(13
)
Research and development expenses
(26
)
 
(5
)
 
(31
)
Other (charges) gains, net
(13
)
 

 
(13
)
Foreign exchange gain (loss), net

 

 

Gain (loss) on disposition of businesses and assets, net
(1
)
 

 
(1
)
Operating profit (loss)
86

 
(376
)
 
(290
)
Equity in net earnings (loss) of affiliates
79

 

 
79

Interest expense
(51
)
 

 
(51
)
Refinancing expense
(3
)
 

 
(3
)
Interest income
1

 

 
1

Dividend income - cost investments

 

 

Other income (expense), net
1

 

 
1

Earnings (loss) from continuing operations before tax
113

 
(376
)
 
(263
)
Income tax (provision) benefit
(16
)
 
112

 
96

Earnings (loss) from continuing operations
97

 
(264
)
 
(167
)
Earnings (loss) from operation of discontinued operations
(3
)
 

 
(3
)
Gain (loss) on disposition of discontinued operations

 

 

Income tax (provision) benefit from discontinued operations
1

 

 
1

Earnings (loss) from discontinued operations
(2
)
 

 
(2
)
Net earnings (loss)
95

 
(264
)
 
(169
)
Net (earnings) loss attributable to noncontrolling interests

 

 

Net earnings (loss) attributable to Celanese Corporation
95

 
(264
)
 
(169
)
Cumulative preferred stock dividends

 

 

Net earnings (loss) available to common stockholders
95

 
(264
)
 
(169
)
Amounts attributable to Celanese Corporation
 
 
 

 
 
Earnings (loss) from continuing operations
97

 
(264
)
 
(167
)
Earnings (loss) from discontinued operations
(2
)
 

 
(2
)
Net earnings (loss)
95

 
(264
)
 
(169
)
Earnings (loss) per common share - basic
 

 
 

 
 

Continuing operations
0.61

 
(1.66
)
 
(1.05
)
Discontinued operations
(0.01
)
 

 
(0.01
)
Net earnings (loss) - basic
0.60

 
(1.66
)
 
(1.06
)
Earnings (loss) per common share - diluted
 

 
 

 
 

Continuing operations
0.60

 
(1.65
)
 
(1.05
)
Discontinued operations
(0.01
)
 

 
(0.01
)
Net earnings (loss) - diluted
0.59

 
(1.65
)
 
(1.06
)
Weighted average shares - basic
159,519,584

 

 
159,519,584

Weighted average shares - diluted
160,278,761

 
(759,177
)
 
159,519,584


EX 99.2 - 6



CELANESE CORPORATION AND SUBSIDIARIES
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
 
Three Months Ended September 30, 2012
 
As Previously Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions, except share and per share data)
Net sales
1,609

 

 
1,609

Cost of sales
(1,285
)
 
4

 
(1,281
)
Gross profit
324

 
4

 
328

Selling, general and administrative expenses
(121
)
 
8

 
(113
)
Amortization of intangible assets
(12
)
 

 
(12
)
Research and development expenses
(24
)
 
1

 
(23
)
Other (charges) gains, net
2

 

 
2

Foreign exchange gain (loss), net
(4
)
 

 
(4
)
Gain (loss) on disposition of businesses and assets, net
(2
)
 

 
(2
)
Operating profit (loss)
163

 
13

 
176

Equity in net earnings (loss) of affiliates
50

 

 
50

Interest expense
(44
)
 

 
(44
)
Refinancing expense

 

 

Interest income

 

 

Dividend income - cost investments
1

 

 
1

Other income (expense), net
3

 

 
3

Earnings (loss) from continuing operations before tax
173

 
13

 
186

Income tax (provision) benefit
(54
)
 
(3
)
 
(57
)
Earnings (loss) from continuing operations
119

 
10

 
129

Earnings (loss) from operation of discontinued operations
(3
)
 

 
(3
)
Gain (loss) on disposition of discontinued operations

 

 

Income tax (provision) benefit from discontinued operations
1

 

 
1

Earnings (loss) from discontinued operations
(2
)
 

 
(2
)
Net earnings (loss)
117

 
10

 
127

Net (earnings) loss attributable to noncontrolling interests

 

 

Net earnings (loss) attributable to Celanese Corporation
117

 
10

 
127

Cumulative preferred stock dividends

 

 

Net earnings (loss) available to common stockholders
117

 
10

 
127

Amounts attributable to Celanese Corporation
 

 
 

 
 
Earnings (loss) from continuing operations
119

 
10

 
129

Earnings (loss) from discontinued operations
(2
)
 

 
(2
)
Net earnings (loss)
117

 
10

 
127

Earnings (loss) per common share - basic
 

 
 

 
 
Continuing operations
0.75

 
0.06

 
0.81

Discontinued operations
(0.01
)
 

 
(0.01
)
Net earnings (loss) - basic
0.74

 
0.06

 
0.80

Earnings (loss) per common share - diluted
 

 
 

 
 
Continuing operations
0.74

 
0.06

 
0.80

Discontinued operations
(0.01
)
 

 
(0.01
)
Net earnings (loss) - diluted
0.73

 
0.06

 
0.79

Weighted average shares - basic
159,158,280

 

 
159,158,280

Weighted average shares - diluted
160,129,376

 

 
160,129,376


EX 99.2 - 7



CELANESE CORPORATION AND SUBSIDIARIES
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
 
Three Months Ended June 30, 2012
 
As Previously Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions, except share and per share data)
Net sales
1,675

 

 
1,675

Cost of sales
(1,344
)
 
4

 
(1,340
)
Gross profit
331

 
4

 
335

Selling, general and administrative expenses
(124
)
 
9

 
(115
)
Amortization of intangible assets
(13
)
 

 
(13
)
Research and development expenses
(26
)
 
1

 
(25
)
Other (charges) gains, net
(3
)
 

 
(3
)
Foreign exchange gain (loss), net
(1
)
 

 
(1
)
Gain (loss) on disposition of businesses and assets, net

 

 

Operating profit (loss)
164

 
14

 
178

Equity in net earnings (loss) of affiliates
62

 

 
62

Interest expense
(45
)
 

 
(45
)
Refinancing expense

 

 

Interest income

 

 

Dividend income - cost investments
84

 

 
84

Other income (expense), net
(1
)
 

 
(1
)
Earnings (loss) from continuing operations before tax
264

 
14

 
278

Income tax (provision) benefit
(54
)
 
(3
)
 
(57
)
Earnings (loss) from continuing operations
210

 
11

 
221

Earnings (loss) from operation of discontinued operations

 

 

Gain (loss) on disposition of discontinued operations

 

 

Income tax (provision) benefit from discontinued operations

 

 

Earnings (loss) from discontinued operations

 

 

Net earnings (loss)
210

 
11

 
221

Net (earnings) loss attributable to noncontrolling interests

 

 

Net earnings (loss) attributable to Celanese Corporation
210

 
11

 
221

Cumulative preferred stock dividends

 

 

Net earnings (loss) available to common stockholders
210

 
11

 
221

Amounts attributable to Celanese Corporation
 

 
 

 
 
Earnings (loss) from continuing operations
210

 
11

 
221

Earnings (loss) from discontinued operations

 

 

Net earnings (loss)
210

 
11

 
221

Earnings (loss) per common share - basic
 

 
 

 
 
Continuing operations
1.33

 
0.07

 
1.40

Discontinued operations

 

 

Net earnings (loss) - basic
1.33

 
0.07

 
1.40

Earnings (loss) per common share - diluted
 

 
 

 
 
Continuing operations
1.31

 
0.07

 
1.38

Discontinued operations

 

 

Net earnings (loss) - diluted
1.31

 
0.07

 
1.38

Weighted average shares - basic
158,163,378

 

 
158,163,378

Weighted average shares - diluted
159,778,255

 

 
159,778,255


EX 99.2 - 8



CELANESE CORPORATION AND SUBSIDIARIES
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
 
Three Months Ended March 31, 2012
 
As Previously Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions, except share and per share data)
Net sales
1,633

 

 
1,633

Cost of sales
(1,363
)
 
4

 
(1,359
)
Gross profit
270

 
4

 
274

Selling, general and administrative expenses
(134
)
 
8

 
(126
)
Amortization of intangible assets
(13
)
 

 
(13
)
Research and development expenses
(26
)
 
1

 
(25
)
Other (charges) gains, net

 

 

Foreign exchange gain (loss), net
1

 

 
1

Gain (loss) on disposition of businesses and assets, net

 

 

Operating profit (loss)
98

 
13

 
111

Equity in net earnings (loss) of affiliates
51

 

 
51

Interest expense
(45
)
 

 
(45
)
Refinancing expense

 

 

Interest income
1

 

 
1

Dividend income - cost investments

 

 

Other income (expense), net
2

 

 
2

Earnings (loss) from continuing operations before tax
107

 
13

 
120

Income tax (provision) benefit
76

 
(3
)
 
73

Earnings (loss) from continuing operations
183

 
10

 
193

Earnings (loss) from operation of discontinued operations

 

 

Gain (loss) on disposition of discontinued operations

 

 

Income tax (provision) benefit from discontinued operations

 

 

Earnings (loss) from discontinued operations

 

 

Net earnings (loss)
183

 
10

 
193

Net (earnings) loss attributable to noncontrolling interests

 

 

Net earnings (loss) attributable to Celanese Corporation
183

 
10

 
193

Cumulative preferred stock dividends

 

 

Net earnings (loss) available to common stockholders
183

 
10

 
193

Amounts attributable to Celanese Corporation
 

 
 

 
 
Earnings (loss) from continuing operations
183

 
10

 
193

Earnings (loss) from discontinued operations

 

 

Net earnings (loss)
183

 
10

 
193

Earnings (loss) per common share - basic
 

 
 

 
 
Continuing operations
1.17

 
0.06

 
1.23

Discontinued operations

 

 

Net earnings (loss) - basic
1.17

 
0.06

 
1.23

Earnings (loss) per common share - diluted
 

 
 

 
 
Continuing operations
1.15

 
0.06

 
1.21

Discontinued operations

 

 

Net earnings (loss) - diluted
1.15

 
0.06

 
1.21

Weighted average shares - basic
156,576,896

 

 
156,576,896

Weighted average shares - diluted
159,115,232

 

 
159,115,232


EX 99.2 - 9



CELANESE CORPORATION AND SUBSIDIARIES
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
 
Three Months Ended December 31, 2011
 
As Previously Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions, except share and per share data)
Net sales
1,614

 

 
1,614

Cost of sales
(1,342
)
 
(23
)
 
(1,365
)
Gross profit
272

 
(23
)
 
249

Selling, general and administrative expenses
(128
)
 
(275
)
 
(403
)
Amortization of intangible assets
(12
)
 

 
(12
)
Research and development expenses
(24
)
 
(4
)
 
(28
)
Other (charges) gains, net
(9
)
 

 
(9
)
Foreign exchange gain (loss), net
(1
)
 

 
(1
)
Gain (loss) on disposition of businesses and assets, net
(1
)
 

 
(1
)
Operating profit (loss)
97

 
(302
)
 
(205
)
Equity in net earnings (loss) of affiliates
46

 

 
46

Interest expense
(55
)
 

 
(55
)
Refinancing expense

 

 

Interest income
1

 

 
1

Dividend income - cost investments

 

 

Other income (expense), net
5

 

 
5

Earnings (loss) from continuing operations before tax
94

 
(302
)
 
(208
)
Income tax (provision) benefit
2

 
112

 
114

Earnings (loss) from continuing operations
96

 
(190
)
 
(94
)
Earnings (loss) from operation of discontinued operations
(1
)
 

 
(1
)
Gain (loss) on disposition of discontinued operations

 

 

Income tax (provision) benefit from discontinued operations

 

 

Earnings (loss) from discontinued operations
(1
)
 

 
(1
)
Net earnings (loss)
95

 
(190
)
 
(95
)
Net (earnings) loss attributable to noncontrolling interests

 

 

Net earnings (loss) attributable to Celanese Corporation
95

 
(190
)
 
(95
)
Cumulative preferred stock dividends

 

 

Net earnings (loss) available to common stockholders
95

 
(190
)
 
(95
)
Amounts attributable to Celanese Corporation
 
 
 

 
 
Earnings (loss) from continuing operations
96

 
(190
)
 
(94
)
Earnings (loss) from discontinued operations
(1
)
 

 
(1
)
Net earnings (loss)
95

 
(190
)
 
(95
)
Earnings (loss) per common share - basic
 

 
 

 
 

Continuing operations
0.62

 
(1.22
)
 
(0.60
)
Discontinued operations
(0.01
)
 

 
(0.01
)
Net earnings (loss) - basic
0.61

 
(1.22
)
 
(0.61
)
Earnings (loss) per common share - diluted
 

 
 

 
 

Continuing operations
0.61

 
(1.21
)
 
(0.60
)
Discontinued operations
(0.01
)
 

 
(0.01
)
Net earnings (loss) - diluted
0.60

 
(1.21
)
 
(0.61
)
Weighted average shares - basic
156,401,899

 

 
156,401,899

Weighted average shares - diluted
158,923,443

 
(2,521,544
)
 
156,401,899


EX 99.2 - 10



CELANESE CORPORATION AND SUBSIDIARIES
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
 
Three Months Ended September 30, 2011
 
As Previously Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions, except share and per share data)
Net sales
1,807

 

 
1,807

Cost of sales
(1,406
)
 
2

 
(1,404
)
Gross profit
401

 
2

 
403

Selling, general and administrative expenses
(140
)
 
2

 
(138
)
Amortization of intangible assets
(17
)
 

 
(17
)
Research and development expenses
(24
)
 
1

 
(23
)
Other (charges) gains, net
(24
)
 

 
(24
)
Foreign exchange gain (loss), net
1

 

 
1

Gain (loss) on disposition of businesses and assets, net
(1
)
 

 
(1
)
Operating profit (loss)
196

 
5

 
201

Equity in net earnings (loss) of affiliates
57

 

 
57

Interest expense
(54
)
 

 
(54
)
Refinancing expense

 

 

Interest income
1

 

 
1

Dividend income - cost investments
1

 

 
1

Other income (expense), net

 

 

Earnings (loss) from continuing operations before tax
201

 
5

 
206

Income tax (provision) benefit
(34
)
 
(1
)
 
(35
)
Earnings (loss) from continuing operations
167

 
4

 
171

Earnings (loss) from operation of discontinued operations

 

 

Gain (loss) on disposition of discontinued operations

 

 

Income tax (provision) benefit from discontinued operations

 

 

Earnings (loss) from discontinued operations

 

 

Net earnings (loss)
167

 
4

 
171

Net (earnings) loss attributable to noncontrolling interests

 

 

Net earnings (loss) attributable to Celanese Corporation
167

 
4

 
171

Cumulative preferred stock dividends

 

 

Net earnings (loss) available to common stockholders
167

 
4

 
171

Amounts attributable to Celanese Corporation
 

 
 

 
 
Earnings (loss) from continuing operations
167

 
4

 
171

Earnings (loss) from discontinued operations

 

 

Net earnings (loss)
167

 
4

 
171

Earnings (loss) per common share - basic
 

 
 

 
 
Continuing operations
1.07

 
0.02

 
1.09

Discontinued operations

 

 

Net earnings (loss) - basic
1.07

 
0.02

 
1.09

Earnings (loss) per common share - diluted
 

 
 

 
 
Continuing operations
1.05

 
0.03

 
1.08

Discontinued operations

 

 

Net earnings (loss) - diluted
1.05

 
0.03

 
1.08

Weighted average shares - basic
156,217,032

 

 
156,217,032

Weighted average shares - diluted
159,041,412

 

 
159,041,412


EX 99.2 - 11



CELANESE CORPORATION AND SUBSIDIARIES
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
 
Three Months Ended June 30, 2011
 
As Previously Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions, except share and per share data)
Net sales
1,753

 

 
1,753

Cost of sales
(1,343
)
 
1

 
(1,342
)
Gross profit
410

 
1

 
411

Selling, general and administrative expenses
(140
)
 
2

 
(138
)
Amortization of intangible assets
(17
)
 

 
(17
)
Research and development expenses
(25
)
 
1

 
(24
)
Other (charges) gains, net
(18
)
 

 
(18
)
Foreign exchange gain (loss), net
(1
)
 

 
(1
)
Gain (loss) on disposition of businesses and assets, net

 

 

Operating profit (loss)
209

 
4

 
213

Equity in net earnings (loss) of affiliates
46

 

 
46

Interest expense
(57
)
 

 
(57
)
Refinancing expense
(3
)
 

 
(3
)
Interest income

 

 

Dividend income - cost investments
79

 

 
79

Other income (expense), net
6

 

 
6

Earnings (loss) from continuing operations before tax
280

 
4

 
284

Income tax (provision) benefit
(75
)
 
(1
)
 
(76
)
Earnings (loss) from continuing operations
205

 
3

 
208

Earnings (loss) from operation of discontinued operations
(3
)
 

 
(3
)
Gain (loss) on disposition of discontinued operations

 

 

Income tax (provision) benefit from discontinued operations
1

 

 
1

Earnings (loss) from discontinued operations
(2
)
 

 
(2
)
Net earnings (loss)
203

 
3

 
206

Net (earnings) loss attributable to noncontrolling interests

 

 

Net earnings (loss) attributable to Celanese Corporation
203

 
3

 
206

Cumulative preferred stock dividends

 

 

Net earnings (loss) available to common stockholders
203

 
3

 
206

Amounts attributable to Celanese Corporation
 

 
 

 
 
Earnings (loss) from continuing operations
205

 
3

 
208

Earnings (loss) from discontinued operations
(2
)
 

 
(2
)
Net earnings (loss)
203

 
3

 
206

Earnings (loss) per common share - basic
 

 
 

 
 
Continuing operations
1.31

 
0.02

 
1.33

Discontinued operations
(0.01
)
 

 
(0.01
)
Net earnings (loss) - basic
1.30

 
0.02

 
1.32

Earnings (loss) per common share - diluted
 

 
 

 
 
Continuing operations
1.29

 
0.01

 
1.30

Discontinued operations
(0.01
)
 

 
(0.01
)
Net earnings (loss) - diluted
1.28

 
0.01

 
1.29

Weighted average shares - basic
156,301,518

 

 
156,301,518

Weighted average shares - diluted
159,230,197

 

 
159,230,197


EX 99.2 - 12



CELANESE CORPORATION AND SUBSIDIARIES
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
 
Three Months Ended March 31, 2011
 
As Previously Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions, except share and per share data)
Net sales
1,589

 

 
1,589

Cost of sales
(1,238
)
 
3

 
(1,235
)
Gross profit
351

 
3

 
354

Selling, general and administrative expenses
(128
)
 
2

 
(126
)
Amortization of intangible assets
(16
)
 

 
(16
)
Research and development expenses
(23
)
 

 
(23
)
Other (charges) gains, net
3

 

 
3

Foreign exchange gain (loss), net
1

 

 
1

Gain (loss) on disposition of businesses and assets, net

 

 

Operating profit (loss)
188

 
5

 
193

Equity in net earnings (loss) of affiliates
43

 

 
43

Interest expense
(55
)
 

 
(55
)
Refinancing expense

 

 

Interest income
1

 

 
1

Dividend income - cost investments

 

 

Other income (expense), net
3

 

 
3

Earnings (loss) from continuing operations before tax
180

 
5

 
185

Income tax (provision) benefit
(42
)
 
(2
)
 
(44
)
Earnings (loss) from continuing operations
138

 
3

 
141

Earnings (loss) from operation of discontinued operations
6

 

 
6

Gain (loss) on disposition of discontinued operations

 

 

Income tax (provision) benefit from discontinued operations
(2
)
 

 
(2
)
Earnings (loss) from discontinued operations
4

 

 
4

Net earnings (loss)
142

 
3

 
145

Net (earnings) loss attributable to noncontrolling interests

 

 

Net earnings (loss) attributable to Celanese Corporation
142

 
3

 
145

Cumulative preferred stock dividends

 

 

Net earnings (loss) available to common stockholders
142

 
3

 
145

Amounts attributable to Celanese Corporation
 

 
 

 
 
Earnings (loss) from continuing operations
138

 
3

 
141

Earnings (loss) from discontinued operations
4

 

 
4

Net earnings (loss)
142

 
3

 
145

Earnings (loss) per common share - basic
 

 
 

 
 
Continuing operations
0.88

 
0.02

 
0.90

Discontinued operations
0.03

 

 
0.03

Net earnings (loss) - basic
0.91

 
0.02

 
0.93

Earnings (loss) per common share - diluted
 

 
 

 
 
Continuing operations
0.87

 
0.01

 
0.88

Discontinued operations
0.03

 

 
0.03

Net earnings (loss) - diluted
0.90

 
0.01

 
0.91

Weighted average shares - basic
155,981,137

 

 
155,981,137

Weighted average shares - diluted
158,681,565

 

 
158,681,565



EX 99.2 - 13


Exhibit 99.3
Non-GAAP Financial Measures
This exhibit provides additional information concerning the implications, on a historic basis, of the Company's change in its accounting policy for pension accounting.
Use of Non-U.S. GAAP Financial Measures
From time to time, management may publicly disclose certain "numerical non-GAAP financial measures" in the course of our financial presentations, earnings releases, earnings conference calls and otherwise. For these purposes, the U.S. Securities and Exchange Commission (“SEC”) defines a "non-GAAP financial measure" as a numerical measure of historical or future financial performance, financial positions, or cash flows that excludes amounts, or is subject to adjustments that effectively exclude amounts, included in the most directly comparable measure calculated and presented in accordance with GAAP in financial statements, and vice versa for measures that include amounts, or is subject to adjustments that effectively include amounts, that are excluded from the most directly comparable measure so calculated and presented. For these purposes, "GAAP" refers to generally accepted accounting principles in the United States.
Non-GAAP financial measures disclosed by management are provided as additional information to investors in order to provide them with an alternative method for assessing our financial condition and operating results. The Company presents these non-GAAP financial measures because it believes them to be important supplemental measures of performance that are used by security analysts, investors and other interested parties in the evaluation of companies in our industry. These non-GAAP financial measures should be viewed as supplemental to, and should not be considered as alternatives to net earnings (loss), operating profit (loss), cash flow from operating activities, earnings per share or any other financial measures. They may not be indicative of the historical operating results of the Company nor is it intended to be predictive of potential future results. Investors should not consider these non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP. Our management uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparison.
Pursuant to the requirements of SEC Regulation G, whenever we refer to a non-GAAP financial measure, we will also generally present, in the presentation or on a Form 8-K or on our Web site, www.celanese.com, to the extent practicable, the most directly comparable financial measure calculated and presented in accordance with GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference with such comparable GAAP financial measure. This supplemental financial disclosure should be considered within the context of our complete audited financial results for the given period, which are available on the Financial Information / SEC Filings page of the Investor Relations section of our Web site, www.celanese.com.
Specific Measures Used
This exhibit uses or references the following performance measures: adjusted EBIT, operating EBITDA and adjusted earnings per share as non-U.S. GAAP measures. The most directly comparable financial measure presented in accordance with U.S. GAAP in our consolidated financial statements for adjusted EBIT is net earnings (loss); for operating EBITDA is net earnings (loss); and for adjusted earnings per share is earnings per common share-diluted.
Definitions
Adjusted EBIT is defined by the company as net earnings (loss) less interest income plus loss (earnings) from discontinued operations, interest expense and taxes, and further adjusted for other charges and other adjustments. We believe that adjusted EBIT is more reflective of our operations as it provides transparency to investors and enhances period-to-period comparability of our operations and financial performance. Our management believes adjusted EBIT is an important measure of our operating performance because it allows management, investors and analysts to evaluate and assess our core operating results from period to period after removing the impact of unusual, non-operational or restructuring-related activities that affect comparability. Our management recognizes that adjusted EBIT has inherent limitations because of the excluded items. Adjusted EBIT is one of the measures management uses for its planning and budgeting process to monitor and evaluate financial and operating results and for the company's incentive compensation plan. We may provide guidance on adjusted EBIT and are unable to reconcile forecasted adjusted EBIT to a U.S. GAAP financial measure because a forecast of other charges and other adjustments is not practical. Adjusted EBIT by business segment may also be referred to by management as segment income.

EX 99.3 - 1



Operating EBITDA is defined by the company as net earnings (loss) less interest income plus loss (earnings) from discontinued operations, interest expense, taxes, and depreciation and amortization, and further adjusted for other charges and other adjustments. We believe that operating EBITDA is more reflective of our operations as it provides transparency to investors and enhances period-to-period comparability of our operations and financial performance. Our management believes operating EBITDA is an important measure of our operating performance because it allows management, investors and analysts to evaluate and assess our core operating results from period to period after removing the impact of unusual, non-operational or restructuring-related activities that affect comparability. Our management recognizes that operating EBITDA has inherent limitations because of the excluded items. Operating EBITDA is one of the measures management uses for its planning and budgeting process to monitor and evaluate financial and operating results and for the company's incentive compensation plan. We may provide guidance on operating EBITDA and are unable to reconcile forecasted operating EBITDA to a U.S. GAAP financial measure because a forecast of other charges and other adjustments is not practical.
Adjusted earnings per share is a measure used by management to measure performance. It is defined by the company as earnings (loss) from continuing operations, adjusted for other charges and other adjustments, and divided by the number of basic common shares, convertible preferred shares and dilutive restricted stock units and stock options calculated using the treasury method. We may provide guidance on an adjusted earnings per share basis and are unable to reconcile forecasted adjusted earnings per share to a U.S. GAAP financial measure without unreasonable effort because a forecast of other charges and other adjustments is not practical. We believe that the presentation of this non-U.S. GAAP measure provides useful information to management and investors regarding various financial and business trends relating to our financial condition and results of operations, and that when U.S. GAAP information is viewed in conjunction with non-U.S. GAAP information, investors are provided with a more meaningful understanding of our ongoing operating performance. Note: The income tax rate used for adjusted earnings per share approximates the midpoint in a range of forecasted tax rates for the year. This range may include certain partial or full-year forecasted tax opportunities, where applicable, and specifically excludes changes in uncertain tax positions, discrete items and other material items adjusted out of our U.S. GAAP earnings for adjusted earnings per share purposes, and changes in management's assessments regarding the ability to realize deferred tax assets. We analyze this rate quarterly and adjust if there is a material change in the range of forecasted tax rates; an updated forecast would not necessarily result in a change to our tax rate used for adjusted earnings per share. The adjusted tax rate is an estimate and may differ from the tax rate used for U.S. GAAP reporting in any given reporting period. It is not practical to reconcile our prospective adjusted tax rate to the actual U.S. GAAP tax rate in any given future period.
Results Unaudited
The results presented in this exhibit, together with the adjustments made to present the results on a comparable basis, have not been audited and are based on internal financial data furnished to management. Quarterly results should not be taken as an indication of the results of operations to be reported for any subsequent period or for the full fiscal year.




EX 99.3 - 2



Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Year Ended December 31, 2012
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Net earnings (loss) 
605

 
(233
)
 
372

(Earnings) loss from discontinued operations
4

 

 
4

Interest income
(2
)
 

 
(2
)
Interest expense
185

 

 
185

Refinancing expense
3

 

 
3

Income tax provision (benefit)
48

 
(103
)
 
(55
)
Other charges (gains), net (1)
14

 

 
14

Other adjustments (1)
52

 
389

 
441

Adjusted EBIT
909

 
53

 
962

Depreciation and amortization expense (2)
300

 

 
300

Operating EBITDA
1,209

 
53

 
1,262

 
Year Ended December 31, 2012
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Advanced Engineered Materials

 

 

Consumer Specialties
6

 

 
6

Industrial Specialties
2

 

 
2

Acetyl Intermediates

 

 

Other Activities  (3)

 

 

Accelerated depreciation and amortization expense
8

 

 
8

Depreciation and amortization expense (2)
300

 

 
300

Total depreciation and amortization expense
308

 

 
308

______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above.
(3)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.


EX 99.3 - 3



Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Year Ended December 31, 2012
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Operating Profit (Loss)
 
 
 
 
 
Advanced Engineered Materials
86

 
9

 
95

Consumer Specialties
244

 
7

 
251

Industrial Specialties
82

 
4

 
86

Acetyl Intermediates
263

 
6

 
269

Other Activities  (1)
(164
)
 
(362
)
 
(526
)
Total
511

 
(336
)
 
175

Equity Earnings, Cost - Dividend Income and Other Income (Expense)
 
 
 
 
 
Advanced Engineered Materials
190

 

 
190

Consumer Specialties
90

 

 
90

Industrial Specialties

 

 

Acetyl Intermediates
13

 

 
13

Other Activities  (1)
39

 

 
39

Total
332

 

 
332

Other Charges and Other Adjustments (2)
 
 
 
 
 
Advanced Engineered Materials
16

 

 
16

Consumer Specialties
34

 

 
34

Industrial Specialties
2

 

 
2

Acetyl Intermediates
5

 

 
5

Other Activities  (1)
9

 
389

 
398

Total
66

 
389

 
455

Adjusted EBIT
 
 
 
 
 
Advanced Engineered Materials
292

 
9

 
301

Consumer Specialties
368

 
7

 
375

Industrial Specialties
84

 
4

 
88

Acetyl Intermediates
281

 
6

 
287

Other Activities  (1)
(116
)
 
27

 
(89
)
Total
909

 
53

 
962

 
 
 
 
 
 
Depreciation and Amortization Expense (3)
 
 
 
 
 
Advanced Engineered Materials
113

 

 
113

Consumer Specialties
39

 

 
39

Industrial Specialties
53

 

 
53

Acetyl Intermediates
80

 

 
80

Other Activities  (1)
15

 

 
15

Total
300

 

 
300

Operating EBITDA
 
 
 
 
 
Advanced Engineered Materials
405

 
9

 
414

Consumer Specialties
407

 
7

 
414

Industrial Specialties
137

 
4

 
141

Acetyl Intermediates
361

 
6

 
367

Other Activities  (1)
(101
)
 
27

 
(74
)
Total
1,209

 
53

 
1,262

______________________________
(1)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.
(2)  
See Other charges and Other adjustments reconciliation for details.
(3)  
Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above.

EX 99.3 - 4



Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
 
Year Ended December 31, 2012
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
 
 
per
share
 
 
 
per
share
 
 
 
per
share
 
(In $ millions, except per share data)
Earnings (loss) from continuing operations
609

 
3.81

 
(233
)
 
(1.46
)
 
376

 
2.35

Deduct: Income tax (provision) benefit
(48
)
 
 
 
103

 
 
 
55

 
 
Earnings (loss) from continuing operations before tax
657

 
 
 
(336
)
 
 
 
321

 
 
Other charges and other adjustments (1)
66

 
 
 
389

 
 
 
455

 
 
Refinancing and related expenses
8

 
 
 

 
 
 
8

 
 
Adjusted earnings (loss) from continuing operations before tax
731

 
 
 
53

 
 
 
784

 
 
Income tax (provision) benefit on adjusted earnings (2)
(124
)
 
 
 
(9
)
 
 
 
(133
)
 
 
Noncontrolling interests

 
 
 

 
 
 

 
 
Adjusted earnings (loss) from continuing operations (3)
607

 
3.80

 
44

 
0.27

 
651

 
4.07

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted shares (in millions) (4)
Weighted average shares outstanding
158.3

 
 
 

 
 
 
158.3

 
 
Dilutive stock options
0.9

 
 
 

 
 
 
0.9

 
 
Dilutive restricted stock units
0.6

 
 
 

 
 
 
0.6

 
 
Total diluted shares
159.8

 
 
 

 
 
 
159.8

 
 
______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
The adjusted effective tax rate is 17% for the year ended December 31, 2012.
(3)  
The As adjusted amount excludes the immediate recognition of actuarial gains and losses and the impact of actual plan asset returns of 13.1% vs. expected plan asset returns of 8.06%.
(4)  
Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net:
Year Ended
December 31, 2012
 
 
 
(In $ millions)
 
 
Employee termination benefits
6

 
 
Kelsterbach plant relocation
7

 
 
Plumbing actions
(5
)
 
 
Asset impairments
8

 
 
Commercial disputes
(2
)
 
 
Total
14

 
 
 
 
 
 
Other Adjustments: ( 1)
Year Ended
December 31, 2012
 
Income Statement Classification
 
(In $ millions)
 
 
Business optimization
9

 
SG&A
Kelsterbach plant relocation
14

 
Cost of sales
Plant closures
21

 
Cost of sales / SG&A
(Gain) loss on disposition of assets
1

 
(Gain) loss on disposition
Acetate production interruption costs
10

 
Cost of sales
InfraServ Hoechst debt restructuring
(22
)
 
Equity in net (earnings) loss of affiliates
Actuarial (gain) loss on pension and postretirement plans
389

 
Cost of sales / SG&A / R&D
Other
19

 
Various
Total
441

 
 
Total other charges and other adjustments
455

 
 
______________________________
(1)  
These items are included in net earnings but not included in Other charges (gains), net.

EX 99.3 - 5



Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Year Ended December 31, 2011
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Net earnings (loss)
607

 
(180
)
 
427

(Earnings) loss from discontinued operations
(1
)
 

 
(1
)
Interest income
(3
)
 

 
(3
)
Interest expense
221

 

 
221

Refinancing expense
3

 

 
3

Income tax provision (benefit)
149

 
(108
)
 
41

Other charges (gains), net (1)
48

 

 
48

Other adjustments (1)
51

 
306

 
357

Adjusted EBIT
1,075

 
18

 
1,093

Depreciation and amortization expense (2)
287

 

 
287

Operating EBITDA
1,362

 
18

 
1,380

 
Year Ended December 31, 2011
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Advanced Engineered Materials
3

 

 
3

Consumer Specialties
8

 

 
8

Industrial Specialties

 

 

Acetyl Intermediates

 

 

Other Activities  (3)

 

 

Accelerated depreciation and amortization expense
11

 

 
11

Depreciation and amortization expense (2)
287

 

 
287

Total depreciation and amortization expense
298

 

 
298

______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above.
(3)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.


EX 99.3 - 6



Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Year Ended December 31, 2011
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Operating Profit (Loss)
 
 
 
 
 
Advanced Engineered Materials
76

 
3

 
79

Consumer Specialties
227

 
2

 
229

Industrial Specialties
100

 
2

 
102

Acetyl Intermediates
459

 
(1
)
 
458

Other Activities  (1)
(172
)
 
(294
)
 
(466
)
Total
690

 
(288
)
 
402

Equity Earnings, Cost - Dividend Income and Other Income (Expense)
 
 
 
 
 
Advanced Engineered Materials
163

 

 
163

Consumer Specialties
80

 

 
80

Industrial Specialties
2

 

 
2

Acetyl Intermediates
10

 

 
10

Other Activities  (1)
31

 

 
31

Total
286

 

 
286

Other Charges and Other Adjustments (2)
 
 
 
 
 
Advanced Engineered Materials
60

 

 
60

Consumer Specialties
23

 

 
23

Industrial Specialties
1

 

 
1

Acetyl Intermediates
(3
)
 

 
(3
)
Other Activities  (1)
18

 
306

 
324

Total
99

 
306

 
405

Adjusted EBIT
 
 
 
 
 
Advanced Engineered Materials
299

 
3

 
302

Consumer Specialties
330

 
2

 
332

Industrial Specialties
103

 
2

 
105

Acetyl Intermediates
466

 
(1
)
 
465

Other Activities  (1)
(123
)
 
12

 
(111
)
Total
1,075

 
18

 
1,093

 
 
 
 
 
 
Depreciation and Amortization Expense (3)
 
 
 
 
 
Advanced Engineered Materials
97

 

 
97

Consumer Specialties
36

 

 
36

Industrial Specialties
45

 

 
45

Acetyl Intermediates
96

 

 
96

Other Activities  (1)
13

 

 
13

Total
287

 

 
287

Operating EBITDA
 
 
 
 
 
Advanced Engineered Materials
396

 
3

 
399

Consumer Specialties
366

 
2

 
368

Industrial Specialties
148

 
2

 
150

Acetyl Intermediates
562

 
(1
)
 
561

Other Activities  (1)
(110
)
 
12

 
(98
)
Total
1,362

 
18

 
1,380

______________________________
(1)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.
(2)  
See Other charges and Other adjustments reconciliation for details.
(3)  
Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above.

EX 99.3 - 7



Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
 
Year Ended December 31, 2011
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
 
 
per
share
 
 
 
per
share
 
 
 
per
share
 
(In $ millions, except per share data)
Earnings (loss) from continuing operations
606

 
3.81

 
(180
)
 
(1.13
)
 
426

 
2.68

Deduct: Income tax (provision) benefit
(149
)
 
 
 
108

 
 
 
(41
)
 
 
Earnings (loss) from continuing operations before tax
755

 
 
 
(288
)
 
 
 
467

 
 
Other charges and other adjustments (1)
99

 
 
 
306

 
 
 
405

 
 
Refinancing and related expenses
3

 
 
 

 
 
 
3

 
 
Adjusted earnings (loss) from continuing operations before tax
857

 
 
 
18

 
 
 
875

 
 
Income tax (provision) benefit on adjusted earnings (2)
(146
)
 
 
 
(12
)
 
 
 
(158
)
 
 
Noncontrolling interests

 
 
 

 
 
 

 
 
Adjusted earnings (loss) from continuing operations (3)
711

 
4.47

 
6

 
0.04

 
717

 
4.51

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted shares (in millions) (4)
Weighted average shares outstanding
156.2

 
 
 

 

 
156.2

 
 
Dilutive stock options
1.9

 
 
 

 

 
1.9

 
 
Dilutive restricted stock units
0.8

 
 
 

 

 
0.8

 
 
Total diluted shares
158.9

 
 
 

 

 
158.9

 

______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
The adjusted effective tax rate for the year ended December 31, 2011 is 17% As previously reported and 18% As adjusted.
(3)  
The As adjusted amount excludes the immediate recognition of actuarial gains and losses and the impact of actual plan asset returns of 7.6% vs. expected plan asset returns of 8.06%.
(4)  
Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.



EX 99.3 - 8



Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net:
Year Ended
December 31, 2011
 
 
 
(In $ millions)
 
 
Employee termination benefits
22

 
 
Kelsterbach plant relocation
47

 
 
Plumbing actions
(6
)
 
 
Asset impairments
1

 
 
Commercial disputes
(15
)
 
 
Other
(1
)
 
 
Total
48

 
 
 
 
 
 
Other Adjustments: ( 1)
Year Ended
December 31, 2011
 
Income Statement Classification
 
(In $ millions)
 
 
Business optimization
8

 
SG&A
Kelsterbach plant relocation
8

 
Cost of sales
Plant closures
18

 
Cost of sales / SG&A
(Gain) loss on disposition of assets
(1
)
 
(Gain) loss on disposition
Write-off of other productive assets
(1
)
 
Cost of sales
Commercial disputes
8

 
Cost of sales / SG&A
Actuarial (gain) loss on pension and postretirement plans
306

 
Cost of sales / SG&A / R&D
Other
11

 
Cost of sales
Total
357

 
 
Total other charges and other adjustments
405

 
 
______________________________
(1)  
These items are included in net earnings but not included in Other charges (gains), net.

EX 99.3 - 9



Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Year Ended December 31, 2010
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Net earnings (loss) 
377

 
(65
)
 
312

(Earnings) loss from discontinued operations
49

 

 
49

Interest income
(7
)
 

 
(7
)
Interest expense
204

 

 
204

Refinancing expense
16

 

 
16

Income tax provision (benefit)
112

 
(40
)
 
72

Other charges (gains), net (1)
46

 

 
46

Other adjustments (1)
67

 
84

 
151

Adjusted EBIT
864

 
(21
)
 
843

Depreciation and amortization expense (2)
258

 

 
258

Operating EBITDA
1,122

 
(21
)
 
1,101

 
Year Ended December 31, 2010
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Advanced Engineered Materials
4

 

 
4

Consumer Specialties
5

 

 
5

Industrial Specialties

 

 

Acetyl Intermediates
20

 

 
20

Other Activities  (3)

 

 

Accelerated depreciation and amortization expense
29

 

 
29

Depreciation and amortization expense (2)
258

 

 
258

Total depreciation and amortization expense
287

 

 
287

______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above.
(3)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.


EX 99.3 - 10



Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Year Ended December 31, 2010
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Operating Profit (Loss)
 
 
 
 
 
Advanced Engineered Materials
186

 
(4
)
 
182

Consumer Specialties
164

 
(1
)
 
163

Industrial Specialties
89

 

 
89

Acetyl Intermediates
243

 
(6
)
 
237

Other Activities  (1)
(179
)
 
(94
)
 
(273
)
Total
503

 
(105
)
 
398

Equity Earnings, Cost - Dividend Income and Other Income (Expense)
 
 
 
 
 
Advanced Engineered Materials
143

 

 
143

Consumer Specialties
73

 

 
73

Industrial Specialties

 

 

Acetyl Intermediates
9

 

 
9

Other Activities  (1)
23

 

 
23

Total
248

 

 
248

Other Charges and Other Adjustments (2)
 
 
 
 
 
Advanced Engineered Materials
(38
)
 

 
(38
)
Consumer Specialties
97

 

 
97

Industrial Specialties
(19
)
 

 
(19
)
Acetyl Intermediates
62

 

 
62

Other Activities  (1)
11

 
84

 
95

Total
113

 
84

 
197

Adjusted EBIT
 
 
 
 
 
Advanced Engineered Materials
291

 
(4
)
 
287

Consumer Specialties
334

 
(1
)
 
333

Industrial Specialties
70

 

 
70

Acetyl Intermediates
314

 
(6
)
 
308

Other Activities  (1)
(145
)
 
(10
)
 
(155
)
Total
864

 
(21
)
 
843

 
 
 
 
 
 
Depreciation and Amortization Expense (3)
 
 
 
 
 
Advanced Engineered Materials
72

 

 
72

Consumer Specialties
37

 

 
37

Industrial Specialties
41

 

 
41

Acetyl Intermediates
97

 

 
97

Other Activities  (1)
11

 

 
11

Total
258

 

 
258

Operating EBITDA
 
 
 
 
 
Advanced Engineered Materials
363

 
(4
)
 
359

Consumer Specialties
371

 
(1
)
 
370

Industrial Specialties
111

 

 
111

Acetyl Intermediates
411

 
(6
)
 
405

Other Activities  (1)
(134
)
 
(10
)
 
(144
)
Total
1,122

 
(21
)
 
1,101

______________________________
(1)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.
(2)  
See Other charges and Other adjustments reconciliation for details.
(3)  
Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above.

EX 99.3 - 11



Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
 
Year Ended December 31, 2010
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
 
 
per
share
 
 
 
per
share
 
 
 
per
share
 
(In $ millions, except per share data)
Earnings (loss) from continuing operations
426

 
2.69

 
(65
)
 
(0.41
)
 
361

 
2.28

Deduct: Income tax (provision) benefit
(112
)
 
 
 
40

 
 
 
(72
)
 
 
Earnings (loss) from continuing operations before tax
538

 
 
 
(105
)
 
 
 
433

 
 
Other charges and other adjustments (1)
113

 
 
 
84

 
 
 
197

 
 
Refinancing and related expenses
16

 
 
 

 
 
 
16

 
 
Adjusted earnings (loss) from continuing operations before tax
667

 
 
 
(21
)
 
 
 
646

 
 
Income tax (provision) benefit on adjusted earnings (2)
(133
)
 
 
 
(3
)
 
 
 
(136
)
 
 
Noncontrolling interests

 
 
 

 
 
 

 
 
Adjusted earnings (loss) from continuing operations (3)
534

 
3.37

 
(24
)
 
(0.15
)
 
510

 
3.22

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted shares (in millions) (4)
Weighted average shares outstanding
154.6

 
 
 

 
 
 
154.6

 
 
Assumed conversion of preferred stock
1.6

 
 
 

 
 
 
1.6

 
 
Dilutive stock options
1.8

 
 
 

 
 
 
1.8

 
 
Dilutive restricted stock units
0.4

 
 
 

 
 
 
0.4

 
 
Total diluted shares
158.4

 
 
 

 
 
 
158.4

 
 
______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
The adjusted effective tax rate for the year ended December 31, 2010 is 20% As previously reported and 21% As adjusted.
(3)  
The As adjusted amount excludes the immediate recognition of actuarial gains and losses and the impact of actual plan asset returns of 15.1% vs. expected plan asset returns of 8.06%.
(4)  
Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.

EX 99.3 - 12



Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net:
Year Ended
December 31, 2010
 
 
 
(In $ millions)
 
 
Employee termination benefits
32

 
 
Kelsterbach plant relocation
26

 
 
Plumbing actions
(59
)
 
 
Insurance recoveries
(18
)
 
 
Asset impairments
74

 
 
Plant/office closures
4

 
 
Commercial disputes
(13
)
 
 
Total
46

 
 
 
 
 
 
Other Adjustments: ( 1)
Year Ended
December 31, 2010
 
Income Statement Classification
 
(In $ millions)
 
 
Business optimization
16

 
Cost of sales / SG&A
Kelsterbach plant relocation
(13
)
 
Cost of sales
Plant closures
17

 
Cost of sales / SG&A
Contract termination
22

 
Cost of sales
(Gain) loss on disposition of assets
(10
)
 
(Gain) loss on disposition
Write-off of other productive assets
18

 
Cost of sales
Actuarial (gain) loss on pension and postretirement plans
84

 
Cost of sales / SG&A / R&D
Other
17

 
Various
Total
151

 
 
Total other charges and other adjustments
197

 
 
______________________________
(1)  
These items are included in net earnings but not included in Other charges (gains), net.

EX 99.3 - 13



Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Year Ended December 31, 2009
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Net earnings (loss) 
498

 
(95
)
 
403

(Earnings) loss from discontinued operations
(4
)
 

 
(4
)
Interest income
(8
)
 

 
(8
)
Interest expense
207

 

 
207

Income tax provision (benefit)
(243
)
 
(51
)
 
(294
)
Other charges (gains), net (1)
136

 

 
136

Other adjustments (1)
(19
)
 
104

 
85

Adjusted EBIT
567

 
(42
)
 
525

Depreciation and amortization expense (2)
290

 

 
290

Operating EBITDA
857

 
(42
)
 
815

 
Year Ended December 31, 2009
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Advanced Engineered Materials
1

 

 
1

Consumer Specialties

 

 

Industrial Specialties
5

 

 
5

Acetyl Intermediates
12

 

 
12

Other Activities  (3)

 

 

Accelerated depreciation and amortization expense
18

 

 
18

Depreciation and amortization expense (2)
290

 

 
290

Total depreciation and amortization expense
308

 

 
308

______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above.
(3)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.



EX 99.3 - 14



Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Year Ended December 31, 2009
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Operating Profit (Loss)
 
 
 
 
 
Advanced Engineered Materials
38

 
(2
)
 
36

Consumer Specialties
231

 
(1
)
 
230

Industrial Specialties
89

 

 
89

Acetyl Intermediates
92

 
(4
)
 
88

Other Activities  (1)
(160
)
 
(139
)
 
(299
)
Total
290

 
(146
)
 
144

Equity Earnings, Cost - Dividend Income and Other Income (Expense)
 
 
 
 
 
Advanced Engineered Materials
76

 

 
76

Consumer Specialties
57

 

 
57

Industrial Specialties

 

 

Acetyl Intermediates
9

 

 
9

Other Activities  (1)
18

 

 
18

Total
160

 

 
160

Other Charges and Other Adjustments (2)
 
 
 
 
 
Advanced Engineered Materials

 

 

Consumer Specialties
10

 

 
10

Industrial Specialties
(26
)
 

 
(26
)
Acetyl Intermediates
103

 

 
103

Other Activities  (1)
30

 
104

 
134

Total
117

 
104

 
221

Adjusted EBIT
 
 
 
 
 
Advanced Engineered Materials
114

 
(2
)
 
112

Consumer Specialties
298

 
(1
)
 
297

Industrial Specialties
63

 

 
63

Acetyl Intermediates
204

 
(4
)
 
200

Other Activities  (1)
(112
)
 
(35
)
 
(147
)
Total
567

 
(42
)
 
525

 
 
 
 
 
 
Depreciation and Amortization Expense (3)
 
 
 
 
 
Advanced Engineered Materials
72

 

 
72

Consumer Specialties
50

 

 
50

Industrial Specialties
46

 

 
46

Acetyl Intermediates
111

 

 
111

Other Activities  (1)
11

 

 
11

Total
290

 

 
290

Operating EBITDA
 
 
 
 
 
Advanced Engineered Materials
186

 
(2
)
 
184

Consumer Specialties
348

 
(1
)
 
347

Industrial Specialties
109

 

 
109

Acetyl Intermediates
315

 
(4
)
 
311

Other Activities  (1)
(101
)
 
(35
)
 
(136
)
Total
857

 
(42
)
 
815

______________________________
(1)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.
(2)  
See Other charges and Other adjustments reconciliation for details.
(3)  
Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above.

EX 99.3 - 15



Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
 
Year Ended December 31, 2009
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
 
 
per
share
 
 
 
per
share
 
 
 
per
share
 
(In $ millions, except per share data)
Earnings (loss) from continuing operations
494

 
3.14

 
(95
)
 
(0.60
)
 
399

 
2.54

Deduct: Income tax (provision) benefit
243

 
 
 
51

 
 
 
294

 
 
Earnings (loss) from continuing operations before tax
251

 
 
 
(146
)
 
 
 
105

 
 
Other charges and other adjustments (1)
117

 
 
 
104

 
 
 
221

 
 
Adjusted earnings (loss) from continuing operations before tax
368

 
 
 
(42
)
 
 
 
326

 
 
Income tax (provision) benefit on adjusted earnings (2)
(93
)
 
 
 
15

 
 
 
(78
)
 
 
Noncontrolling interests

 
 
 

 
 
 

 
 
Adjusted earnings (loss) from continuing operations (3)
275

 
1.75

 
(27
)
 
(0.17
)
 
248

 
1.58

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted shares (in millions) (4)
Weighted average shares outstanding
143.7

 
 
 

 
 
 
143.7

 
 
Assumed conversion of preferred stock
12.1

 
 
 

 
 
 
12.1

 
 
Dilutive stock options
1.1

 
 
 

 
 
 
1.1

 
 
Dilutive restricted stock units
0.2

 
 
 

 
 
 
0.2

 
 
Total diluted shares
157.1

 
 
 

 
 
 
157.1

 
 
______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
The average adjusted effective tax rate for the year ended December 31, 2009 is 25% As previously reported and 24% As adjusted.
(3)  
The As adjusted amount excludes the immediate recognition of actuarial gains and losses and the impact of actual plan asset returns of 17.9% vs. expected plan asset returns of 7.94%.
(4)  
Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net:
Year Ended
December 31, 2009
 
 
 
(In $ millions)
 
 
Employee termination benefits
105

 
 
Kelsterbach plant relocation
16

 
 
Plumbing actions
(10
)
 
 
Insurance recoveries
(6
)
 
 
Asset impairments
14

 
 
Plant/office closures
17

 
 
Total
136

 
 
 
 
 
 
Other Adjustments: ( 1)
Year Ended
December 31, 2009
 
Income Statement Classification
 
(In $ millions)
 
 
Business optimization
7

 
SG&A
Plant closures
25

 
Cost of sales
(Gain) on sale of PVOH business
(34
)
 
(Gain) loss on disposition
Actuarial (gain) loss on pension and postretirement plans
104

 
Cost of sales / SG&A / R&D
Other
(17
)
 
Various
Total
85

 
 
Total other charges and other adjustments
221

 
 
______________________________
(1)  
These items are included in net earnings but not included in Other charges (gains), net.

EX 99.3 - 16



Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Year Ended December 31, 2008
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Net earnings (loss) 
280

 
(542
)
 
(262
)
(Earnings) loss from discontinued operations
90

 

 
90

Interest income
(31
)
 

 
(31
)
Interest expense
261

 

 
261

Income tax provision (benefit)
63

 
(5
)
 
58

Other charges (gains), net (1)
108

 

 
108

Other adjustments (1)
63

 
551

 
614

Adjusted EBIT
834

 
4

 
838

Depreciation and amortization expense (2)
329

 

 
329

Operating EBITDA
1,163

 
4

 
1,167

 
Year Ended December 31, 2008
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Advanced Engineered Materials

 

 

Consumer Specialties

 

 

Industrial Specialties
5

 

 
5

Acetyl Intermediates
16

 

 
16

Other Activities  (3)

 

 

Accelerated depreciation and amortization expense
21

 

 
21

Depreciation and amortization expense (2)
329

 

 
329

Total depreciation and amortization expense
350

 

 
350

______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above.
(3)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.


EX 99.3 - 17



Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Year Ended December 31, 2008
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Operating Profit (Loss)
 
 
 
 
 
Advanced Engineered Materials
37

 
(5
)
 
32

Consumer Specialties
190

 
(1
)
 
189

Industrial Specialties
47

 
(2
)
 
45

Acetyl Intermediates
304

 
(4
)
 
300

Other Activities  (1)
(138
)
 
(535
)
 
(673
)
Total
440

 
(547
)
 
(107
)
Equity Earnings, Cost - Dividend Income and Other Income (Expense)
 
 
 
 
 
Advanced Engineered Materials
153

 

 
153

Consumer Specialties
47

 

 
47

Industrial Specialties

 

 

Acetyl Intermediates
8

 

 
8

Other Activities  (1)
15

 

 
15

Total
223

 

 
223

Other Charges and Other Adjustments (2)
 
 
 
 
 
Advanced Engineered Materials
25

 

 
25

Consumer Specialties
3

 

 
3

Industrial Specialties
13

 

 
13

Acetyl Intermediates
108

 

 
108

Other Activities  (1)
22

 
551

 
573

Total
171

 
551

 
722

Adjusted EBIT
 
 
 
 
 
Advanced Engineered Materials
215

 
(5
)
 
210

Consumer Specialties
240

 
(1
)
 
239

Industrial Specialties
60

 
(2
)
 
58

Acetyl Intermediates
420

 
(4
)
 
416

Other Activities  (1)
(101
)
 
16

 
(85
)
Total
834

 
4

 
838

 
 
 
 
 
 
Depreciation and Amortization Expense (3)
 
 
 
 
 
Advanced Engineered Materials
76

 

 
76

Consumer Specialties
53

 

 
53

Industrial Specialties
57

 

 
57

Acetyl Intermediates
134

 

 
134

Other Activities  (1)
9

 

 
9

Total
329

 

 
329

Operating EBITDA
 
 
 
 
 
Advanced Engineered Materials
291

 
(5
)
 
286

Consumer Specialties
293

 
(1
)
 
292

Industrial Specialties
117

 
(2
)
 
115

Acetyl Intermediates
554

 
(4
)
 
550

Other Activities  (1)
(92
)
 
16

 
(76
)
Total
1,163

 
4

 
1,167

______________________________
(1)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.
(2)  
See Other charges and Other adjustments reconciliation for details.
(3)  
Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above.

EX 99.3 - 18



Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
 
Year Ended December 31, 2008
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
 
 
per
share
 
 
 
per
share
 
 
 
per
share
 
(In $ millions, except per share data)
Earnings (loss) from continuing operations
370

 
2.27

 
(542
)
 
(3.49
)
 
(172
)
 
(1.22
)
Deduct: Income tax (provision) benefit
(63
)
 
 
 
5

 
 
 
(58
)
 
 
Earnings (loss) from continuing operations before tax
433

 
 
 
(547
)
 
 
 
(114
)
 
 
Other charges and other adjustments (1)
171

 
 
 
551

 
 
 
722

 
 
Adjusted earnings (loss) from continuing operations before tax
604

 
 
 
4

 
 
 
608

 
 
Income tax (provision) benefit on adjusted earnings (2)
(157
)
 
 
 
(1
)
 
 
 
(158
)
 
 
Noncontrolling interests
1

 
 
 

 
 
 
1

 
 
Adjusted earnings (loss) from continuing operations (4)
448

 
2.74

(3)  
3

 
0.02

 
451

 
2.76

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted shares (in millions) (5)
Weighted average shares outstanding
148.4

 
 
 

 
 
 
148.4

 
 
Assumed conversion of preferred stock
12.0

 
 
 

 
 
 
12.0

 
 
Dilutive stock options
2.6

 
 
 

 
 
 
2.6

 
 
Dilutive restricted stock units
0.5

 
 
 

 
 
 
0.5

 
 
Total diluted shares
163.5

 
 
 

 
 
 
163.5

 
 
______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
The adjusted effective tax rate is 26% for the year ended December 31, 2008.
(3)  
Reported for the first time since retrospectively applying the equity method of accounting to the Company's investment in National Methanol Company (“Ibn Sina”). See the Company's Form 10-K for the year ended December 31, 2010 for more information.
(4)  
The As adjusted amount excludes the immediate recognition of actuarial gains and losses and the impact of actual plan asset returns of (18.2)% vs. expected plan asset returns of 8.05%.
(5)  
Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.


EX 99.3 - 19



Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net:
Year Ended
December 31, 2008
 
 
 
(In $ millions)
 
 
Employee termination benefits
21

 
 
Kelsterbach plant relocation
12

 
 
Insurance recoveries
(38
)
 
 
Asset impairments
115

 
 
Plant/office closures
7

 
 
Commercial disputes
(8
)
 
 
Other
(1
)
 
 
Total
108

 
 
 
 
 
 
Other Adjustments: ( 1)
Year Ended
December 31, 2008
 
Income Statement Classification
 
(In $ millions)
 
 
Business optimization
33

 
SG&A
Kelsterbach plant relocation
(4
)
 
Cost of sales
Plant closures
23

 
Cost of sales
Ethylene pipeline exit costs
(2
)
 
Other (income) expense, net
Actuarial (gain) loss on pension and postretirement plans
551

 
Cost of sales / SG&A / R&D
Other
13

 
Various
Total
614

 
 
Total other charges and other adjustments
722

 
 
______________________________
(1)  
These items are included in net earnings but not included in Other charges (gains), net.

EX 99.3 - 20



Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Three Months Ended December 31, 2012
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Net earnings (loss) 
95

 
(264
)
 
(169
)
(Earnings) loss from discontinued operations
2

 

 
2

Interest income
(1
)
 

 
(1
)
Interest expense
51

 

 
51

Refinancing expense
3

 

 
3

Income tax provision (benefit)
16

 
(112
)
 
(96
)
Other charges (gains), net (1)
13

 

 
13

Other adjustments (1)
(4
)
 
389

 
385

Adjusted EBIT
175

 
13

 
188

Depreciation and amortization expense (2)
79

 

 
79

Operating EBITDA
254

 
13

 
267

 
Three Months Ended December 31, 2012
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Advanced Engineered Materials

 

 

Consumer Specialties
2

 

 
2

Industrial Specialties

 

 

Acetyl Intermediates

 

 

Other Activities  (3)

 

 

Accelerated depreciation and amortization expense
2

 

 
2

Depreciation and amortization expense (2)
79

 

 
79

Total depreciation and amortization expense
81

 

 
81

______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above.
(3)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.


EX 99.3 - 21



Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Three Months Ended December 31, 2012
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Operating Profit (Loss)
 
 
 
 
 
Advanced Engineered Materials
1

 
3

 
4

Consumer Specialties
60

 
2

 
62

Industrial Specialties
6

 

 
6

Acetyl Intermediates
64

 
2

 
66

Other Activities  (1)
(45
)
 
(383
)
 
(428
)
Total
86

 
(376
)
 
(290
)
Equity Earnings, Cost - Dividend Income and Other Income (Expense)
 
 
 
 
 
Advanced Engineered Materials
47

 

 
47

Consumer Specialties
5

 

 
5

Industrial Specialties

 

 

Acetyl Intermediates
8

 

 
8

Other Activities  (1)
20

 

 
20

Total
80

 

 
80

Other Charges and Other Adjustments (2)
 
 
 
 
 
Advanced Engineered Materials
11

 

 
11

Consumer Specialties
11

 

 
11

Industrial Specialties

 

 

Acetyl Intermediates
(5
)
 

 
(5
)
Other Activities  (1)
(8
)
 
389

 
381

Total
9

 
389

 
398

Adjusted EBIT
 
 
 
 
 
Advanced Engineered Materials
59

 
3

 
62

Consumer Specialties
76

 
2

 
78

Industrial Specialties
6

 

 
6

Acetyl Intermediates
67

 
2

 
69

Other Activities  (1)
(33
)
 
6

 
(27
)
Total
175

 
13

 
188

 
 
 
 
 
 
Depreciation and Amortization Expense (3)
 
 
 
 
 
Advanced Engineered Materials
29

 

 
29

Consumer Specialties
10

 

 
10

Industrial Specialties
14

 

 
14

Acetyl Intermediates
21

 

 
21

Other Activities  (1)
5

 

 
5

Total
79

 

 
79

Operating EBITDA
 
 
 
 
 
Advanced Engineered Materials
88

 
3

 
91

Consumer Specialties
86

 
2

 
88

Industrial Specialties
20

 

 
20

Acetyl Intermediates
88

 
2

 
90

Other Activities  (1)
(28
)
 
6

 
(22
)
Total
254

 
13

 
267

______________________________
(1)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.
(2)  
See Other charges and Other adjustments reconciliation for details.
(3)  
Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above.

EX 99.3 - 22



Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
 
Three Months Ended December 31, 2012
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
 
 
per
share
 
 
 
per
share
 
 
 
per
share
 
(In $ millions, except per share data)
Earnings (loss) from continuing operations
97

 
0.60

 
(264
)
 
(1.65
)
 
(167
)
 
(1.05
)
Deduct: Income tax (provision) benefit
(16
)
 
 
 
112

 
 
 
96

 
 
Earnings (loss) from continuing operations before tax
113

 
 
 
(376
)
 
 
 
(263
)
 
 
Other charges and other adjustments (1)
9

 
 
 
389

 
 
 
398

 
 
Refinancing and related expenses
8

 
 
 

 
 
 
8

 
 
Adjusted earnings (loss) from continuing operations before tax
130

 
 
 
13

 
 
 
143

 
 
Income tax (provision) benefit on adjusted earnings (2)
(22
)
 
 
 
(2
)
 
 
 
(24
)
 
 
Noncontrolling interests

 
 
 

 
 
 

 
 
Adjusted earnings (loss) from continuing operations (3)
108

 
0.67

 
11

 
0.07

 
119

 
0.74

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted shares (in millions) (4)
Weighted average shares outstanding
159.5

 
 
 

 
 
 
159.5

 
 
Dilutive stock options
0.2

 
 
 

 
 
 
0.2

 
 
Dilutive restricted stock units
0.5

 
 
 

 
 
 
0.5

 
 
Total diluted shares
160.2

 
 
 

 
 
 
160.2

 
 
______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
The adjusted effective tax rate is 17% for the three months ended December 31, 2012.
(3)  
The As adjusted amount excludes the immediate recognition of actuarial gains and losses and the impact of actual plan asset returns of 13.1% vs. expected plan asset returns of 8.06%.
(4)  
Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net:
Three Months Ended
December 31, 2012
 
 
 
(In $ millions)
 
 
Employee termination benefits
4

 
 
Kelsterbach plant relocation
2

 
 
Plumbing actions
(1
)
 
 
Asset impairments
8

 
 
Total
13

 
 
 
 
 
 
Other Adjustments: ( 1)
Three Months Ended
December 31, 2012
 
Income Statement Classification
 
(In $ millions)
 
 
Business optimization
1

 
SG&A
Kelsterbach plant relocation
10

 
Cost of sales
Plant closures
5

 
Cost of sales / SG&A
InfraServ Hoechst debt restructuring
(22
)
 
Equity in net (earnings) loss of affiliates
Actuarial loss on pension and postretirement plans
389

 
Cost of sales / SG&A / R&D
Other
2

 
Cost of sales
Total
385

 
 
Total other charges and other adjustments
398

 
 
______________________________
(1)  
These items are included in net earnings but not included in Other charges (gains), net.


EX 99.3 - 23



Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Three Months Ended September 30, 2012
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Net earnings (loss) 
117

 
10

 
127

(Earnings) loss from discontinued operations
2

 

 
2

Interest income

 

 

Interest expense
44

 

 
44

Refinancing expense

 

 

Income tax provision (benefit)
54

 
3

 
57

Other charges (gains), net (1)
(2
)
 

 
(2
)
Other adjustments (1)
8

 

 
8

Adjusted EBIT
223

 
13

 
236

Depreciation and amortization expense (2)
75

 

 
75

Operating EBITDA
298

 
13

 
311

 
Three Months Ended September 30, 2012
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Advanced Engineered Materials

 

 

Consumer Specialties
3

 

 
3

Industrial Specialties

 

 

Acetyl Intermediates

 

 

Other Activities  (3)

 

 

Accelerated depreciation and amortization expense
3

 

 
3

Depreciation and amortization expense (2)
75

 

 
75

Total depreciation and amortization expense
78

 

 
78

______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above.
(3)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.


EX 99.3 - 24



Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Three Months Ended September 30, 2012
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Operating Profit (Loss)
 
 
 
 
 
Advanced Engineered Materials
43

 
1

 
44

Consumer Specialties
70

 
2

 
72

Industrial Specialties
23

 
2

 
25

Acetyl Intermediates
62

 
1

 
63

Other Activities  (1)
(35
)
 
7

 
(28
)
Total
163

 
13

 
176

Equity Earnings, Cost - Dividend Income and Other Income (Expense)
 
 
 
 
 
Advanced Engineered Materials
45

 

 
45

Consumer Specialties

 

 

Industrial Specialties

 

 

Acetyl Intermediates
2

 

 
2

Other Activities  (1)
7

 

 
7

Total
54

 

 
54

Other Charges and Other Adjustments (2)
 
 
 
 
 
Advanced Engineered Materials
(8
)
 

 
(8
)
Consumer Specialties
7

 

 
7

Industrial Specialties

 

 

Acetyl Intermediates
7

 

 
7

Other Activities  (1)

 

 

Total
6

 

 
6

Adjusted EBIT
 
 
 
 
 
Advanced Engineered Materials
80

 
1

 
81

Consumer Specialties
77

 
2

 
79

Industrial Specialties
23

 
2

 
25

Acetyl Intermediates
71

 
1

 
72

Other Activities  (1)
(28
)
 
7

 
(21
)
Total
223

 
13

 
236

 
 
 
 
 
 
Depreciation and Amortization Expense (3)
 
 
 
 
 
Advanced Engineered Materials
29

 

 
29

Consumer Specialties
10

 

 
10

Industrial Specialties
13

 

 
13

Acetyl Intermediates
20

 

 
20

Other Activities  (1)
3

 

 
3

Total
75

 

 
75

Operating EBITDA
 
 
 
 
 
Advanced Engineered Materials
109

 
1

 
110

Consumer Specialties
87

 
2

 
89

Industrial Specialties
36

 
2

 
38

Acetyl Intermediates
91

 
1

 
92

Other Activities  (1)
(25
)
 
7

 
(18
)
Total
298

 
13

 
311

______________________________
(1)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.
(2)  
See Other charges and Other adjustments reconciliation for details.
(3)  
Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above.

EX 99.3 - 25



Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
 
Three Months Ended September 30, 2012
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
 
 
per
share
 
 
 
per
share
 
 
 
per
share
 
(In $ millions, except per share data)
Earnings (loss) from continuing operations
119

 
0.74

 
10

 
0.06

 
129

 
0.80

Deduct: Income tax (provision) benefit
(54
)
 
 
 
(3
)
 
 
 
(57
)
 
 
Earnings (loss) from continuing operations before tax
173

 
 
 
13

 
 
 
186

 
 
Other charges and other adjustments (1)
6

 
 
 

 
 
 
6

 
 
Refinancing and related expenses

 
 
 

 
 
 

 
 
Adjusted earnings (loss) from continuing operations before tax
179

 
 
 
13

 
 
 
192

 
 
Income tax (provision) benefit on adjusted earnings (2)
(30
)
 
 
 
(3
)
 
 
 
(33
)
 
 
Noncontrolling interests

 
 
 

 
 
 

 
 
Adjusted earnings (loss) from continuing operations
149

 
0.93

 
10

 
0.06

 
159

 
0.99

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted shares (in millions) (3)
Weighted average shares outstanding
159.1

 
 
 

 
 
 
159.1

 
 
Dilutive stock options
0.3

 
 
 

 
 
 
0.3

 
 
Dilutive restricted stock units
0.7

 
 
 

 
 
 
0.7

 
 
Total diluted shares
160.1

 
 
 

 
 
 
160.1

 
 
______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
The adjusted effective tax rate is 17% for the three months ended September 30, 2012.
(3)  
Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net:
Three Months Ended
September 30, 2012
 
 
 
(In $ millions)
 
 
Employee termination benefits
1

 
 
Kelsterbach plant relocation
3

 
 
Plumbing actions
(4
)
 
 
Commercial disputes
(2
)
 
 
Total
(2
)
 
 
 
 
 
 
Other Adjustments: ( 1)
Three Months Ended
September 30, 2012
 
Income Statement Classification
 
(In $ millions)
 
 
Kelsterbach plant relocation
(7
)
 
Cost of sales
Plant closures
10

 
Cost of sales / SG&A
(Gain) loss on disposition of assets
1

 
(Gain) loss on disposition
Other
4

 
Various
Total
8

 
 
Total other charges and other adjustments
6

 
 
______________________________
(1)  
These items are included in net earnings but not included in Other charges (gains), net.


EX 99.3 - 26



Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Three Months Ended June 30, 2012
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Net earnings (loss) 
210

 
11

 
221

(Earnings) loss from discontinued operations

 

 

Interest income

 

 

Interest expense
45

 

 
45

Refinancing expense

 

 

Income tax provision (benefit)
54

 
3

 
57

Other charges (gains), net (1)
3

 

 
3

Other adjustments (1)
16

 

 
16

Adjusted EBIT
328

 
14

 
342

Depreciation and amortization expense (2)
74

 

 
74

Operating EBITDA
402

 
14

 
416

 
Three Months Ended June 30, 2012
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Advanced Engineered Materials

 

 

Consumer Specialties
1

 

 
1

Industrial Specialties

 

 

Acetyl Intermediates

 

 

Other Activities  (3)

 

 

Accelerated depreciation and amortization expense
1

 

 
1

Depreciation and amortization expense (2)
74

 

 
74

Total depreciation and amortization expense
75

 

 
75

______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above.
(3)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.



EX 99.3 - 27



Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Three Months Ended June 30, 2012
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Operating Profit (Loss)
 
 
 
 
 
Advanced Engineered Materials
21

 
2

 
23

Consumer Specialties
75

 
2

 
77

Industrial Specialties
34

 
1

 
35

Acetyl Intermediates
77

 
1

 
78

Other Activities  (1)
(43
)
 
8

 
(35
)
Total
164

 
14

 
178

Equity Earnings, Cost - Dividend Income and Other Income (Expense)
 
 
 
 
 
Advanced Engineered Materials
55

 

 
55

Consumer Specialties
84

 

 
84

Industrial Specialties

 

 

Acetyl Intermediates
2

 

 
2

Other Activities  (1)
4

 

 
4

Total
145

 

 
145

Other Charges and Other Adjustments (2)
 
 
 
 
 
Advanced Engineered Materials
10

 

 
10

Consumer Specialties
(1
)
 

 
(1
)
Industrial Specialties

 

 

Acetyl Intermediates
1

 

 
1

Other Activities  (1)
9

 

 
9

Total
19

 

 
19

Adjusted EBIT
 
 
 
 
 
Advanced Engineered Materials
86

 
2

 
88

Consumer Specialties
158

 
2

 
160

Industrial Specialties
34

 
1

 
35

Acetyl Intermediates
80

 
1

 
81

Other Activities  (1)
(30
)
 
8

 
(22
)
Total
328

 
14

 
342

 
 
 
 
 
 
Depreciation and Amortization Expense (3)
 
 
 
 
 
Advanced Engineered Materials
28

 

 
28

Consumer Specialties
10

 

 
10

Industrial Specialties
13

 

 
13

Acetyl Intermediates
19

 

 
19

Other Activities  (1)
4

 

 
4

Total
74

 

 
74

Operating EBITDA
 
 
 
 
 
Advanced Engineered Materials
114

 
2

 
116

Consumer Specialties
168

 
2

 
170

Industrial Specialties
47

 
1

 
48

Acetyl Intermediates
99

 
1

 
100

Other Activities  (1)
(26
)
 
8

 
(18
)
Total
402

 
14

 
416

______________________________
(1)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.
(2)  
See Other charges and Other adjustments reconciliation for details.
(3)  
Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above.

EX 99.3 - 28



Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
 
Three Months Ended June 30, 2012
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
 
 
per
share
 
 
 
per
share
 
 
 
per
share
 
(In $ millions, except per share data)
Earnings (loss) from continuing operations
210

 
1.31

 
11

 
0.07

 
221

 
1.38

Deduct: Income tax (provision) benefit
(54
)
 
 
 
(3
)
 
 
 
(57
)
 
 
Earnings (loss) from continuing operations before tax
264

 
 
 
14

 
 
 
278

 
 
Other charges and other adjustments (1)
19

 
 
 

 
 
 
19

 
 
Refinancing and related expenses

 
 
 

 
 
 

 
 
Adjusted earnings (loss) from continuing operations before tax
283

 
 
 
14

 
 
 
297

 
 
Income tax (provision) benefit on adjusted earnings (2)
(48
)
 
 
 
(2
)
 
 
 
(50
)
 
 
Noncontrolling interests

 
 
 

 
 
 

 
 
Adjusted earnings (loss) from continuing operations
235

 
1.47

 
12

 
0.08

 
247

 
1.55

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted shares (in millions) (3)
Weighted average shares outstanding
158.2

 
 
 

 
 
 
158.2

 
 
Dilutive stock options
1.0

 
 
 

 
 
 
1.0

 
 
Dilutive restricted stock units
0.6

 
 
 

 
 
 
0.6

 
 
Total diluted shares
159.8

 
 
 

 
 
 
159.8

 
 
______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
The adjusted effective tax rate is 17% for the three months ended June 30, 2012.
(3)  
Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net:
Three Months Ended
June 30, 2012
 
 
 
(In $ millions)
 
 
Employee termination benefits
1

 
 
Kelsterbach plant relocation
2

 
 
Total
3

 
 
 
 
 
 
Other Adjustments: ( 1)
Three Months Ended
June 30, 2012
 
Income Statement Classification
 
(In $ millions)
 
 
Business optimization
3

 
SG&A
Kelsterbach plant relocation
8

 
Cost of sales
Plant closures
2

 
Cost of sales
Other
3

 
Various
Total
16

 
 
Total other charges and other adjustments
19

 
 
______________________________
(1)  
These items are included in net earnings but not included in Other charges (gains), net.

EX 99.3 - 29



Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Three Months Ended March 31, 2012
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Net earnings (loss) 
183

 
10

 
193

(Earnings) loss from discontinued operations

 

 

Interest income
(1
)
 

 
(1
)
Interest expense
45

 

 
45

Refinancing expense

 

 

Income tax provision (benefit)
(76
)
 
3

 
(73
)
Other charges (gains), net (1)

 

 

Other adjustments (1)
32

 

 
32

Adjusted EBIT
183

 
13

 
196

Depreciation and amortization expense (2)
72

 

 
72

Operating EBITDA
255

 
13

 
268

 
Three Months Ended March 31, 2012
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Advanced Engineered Materials

 

 

Consumer Specialties

 

 

Industrial Specialties
2

 

 
2

Acetyl Intermediates

 

 

Other Activities  (3)

 

 

Accelerated depreciation and amortization expense
2

 

 
2

Depreciation and amortization expense (2)
72

 

 
72

Total depreciation and amortization expense
74

 

 
74

______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above.
(3)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.



EX 99.3 - 30



Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Three Months Ended March 31, 2012
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Operating Profit (Loss)
 
 
 
 
 
Advanced Engineered Materials
21

 
3

 
24

Consumer Specialties
39

 
1

 
40

Industrial Specialties
19

 
1

 
20

Acetyl Intermediates
60

 
2

 
62

Other Activities  (1)
(41
)
 
6

 
(35
)
Total
98

 
13

 
111

Equity Earnings, Cost - Dividend Income and Other Income (Expense)
 
 
 
 
 
Advanced Engineered Materials
43

 

 
43

Consumer Specialties
1

 

 
1

Industrial Specialties

 

 

Acetyl Intermediates
1

 

 
1

Other Activities  (1)
8

 

 
8

Total
53

 

 
53

Other Charges and Other Adjustments (2)
 
 
 
 
 
Advanced Engineered Materials
3

 

 
3

Consumer Specialties
17

 

 
17

Industrial Specialties
2

 

 
2

Acetyl Intermediates
2

 

 
2

Other Activities  (1)
8

 

 
8

Total
32

 

 
32

Adjusted EBIT
 
 
 
 
 
Advanced Engineered Materials
67

 
3

 
70

Consumer Specialties
57

 
1

 
58

Industrial Specialties
21

 
1

 
22

Acetyl Intermediates
63

 
2

 
65

Other Activities  (1)
(25
)
 
6

 
(19
)
Total
183

 
13

 
196

 
 
 
 
 
 
Depreciation and Amortization Expense (3)
 
 
 
 
 
Advanced Engineered Materials
27

 

 
27

Consumer Specialties
9

 

 
9

Industrial Specialties
13

 

 
13

Acetyl Intermediates
20

 

 
20

Other Activities  (1)
3

 

 
3

Total
72

 

 
72

Operating EBITDA
 
 
 
 
 
Advanced Engineered Materials
94

 
3

 
97

Consumer Specialties
66

 
1

 
67

Industrial Specialties
34

 
1

 
35

Acetyl Intermediates
83

 
2

 
85

Other Activities  (1)
(22
)
 
6

 
(16
)
Total
255

 
13

 
268

______________________________
(1)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.
(2)  
See Other charges and Other adjustments reconciliation for details.
(3)  
Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above.

EX 99.3 - 31



Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
 
Three Months Ended March 31, 2012
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
 
 
per
share
 
 
 
per
share
 
 
 
per
share
 
(In $ millions, except per share data)
Earnings (loss) from continuing operations
183

 
1.15

 
10

 
0.06

 
193

 
1.21

Deduct: Income tax (provision) benefit
76

 
 
 
(3
)
 
 
 
73

 
 
Earnings (loss) from continuing operations before tax
107

 
 
 
13

 
 
 
120

 
 
Other charges and other adjustments (1)
32

 
 
 

 
 
 
32

 
 
Refinancing and related expenses

 
 
 

 
 
 

 
 
Adjusted earnings (loss) from continuing operations before tax
139

 
 
 
13

 
 
 
152

 
 
Income tax (provision) benefit on adjusted earnings (2)
(24
)
 
 
 
(2
)
 
 
 
(26
)
 
 
Noncontrolling interests

 
 
 

 
 
 

 
 
Adjusted earnings (loss) from continuing operations
115

 
0.72

 
11

 
0.07

 
126

 
0.79

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted shares (in millions) (3)
Weighted average shares outstanding
156.5

 
 
 

 
 
 
156.5

 
 
Dilutive stock options
1.9

 
 
 

 
 
 
1.9

 
 
Dilutive restricted stock units
0.7

 
 
 

 
 
 
0.7

 
 
Total diluted shares
159.1

 
 
 

 
 
 
159.1

 
 
______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
The adjusted effective tax rate is 17% for the three months ended March 31, 2012.
(3)  
Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net:
Three Months Ended
March 31, 2012
 
 
 
(In $ millions)
 
 
Total

 
 
 
 
 
 
Other Adjustments: ( 1)
Three Months Ended
March 31, 2012
 
Income Statement Classification
 
(In $ millions)
 
 
Business optimization
5

 
SG&A
Kelsterbach plant relocation
3

 
Cost of sales
Plant closures
4

 
Cost of sales / SG&A
Acetate production interruption costs
10

 
Cost of sales
Other
10

 
Various
Total
32

 
 
Total other charges and other adjustments
32

 
 
______________________________
(1)  
These items are included in net earnings but not included in Other charges (gains), net.


EX 99.3 - 32



Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Three Months Ended December 31, 2011
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Net earnings (loss) 
95

 
(190
)
 
(95
)
(Earnings) loss from discontinued operations
1

 

 
1

Interest income
(1
)
 

 
(1
)
Interest expense
55

 

 
55

Refinancing expense

 

 

Income tax provision (benefit)
(2
)
 
(112
)
 
(114
)
Other charges (gains), net (1)
9

 

 
9

Other adjustments (1)
10

 
306

 
316

Adjusted EBIT
167

 
4

 
171

Depreciation and amortization expense (2)
76

 

 
76

Operating EBITDA
243

 
4

 
247

 
Three Months Ended December 31, 2011
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Advanced Engineered Materials

 

 

Consumer Specialties
1

 

 
1

Industrial Specialties

 

 

Acetyl Intermediates

 

 

Other Activities  (3)

 

 

Accelerated depreciation and amortization expense
1

 

 
1

Depreciation and amortization expense (2)
76

 

 
76

Total depreciation and amortization expense
77

 

 
77

______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above.
(3)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.


EX 99.3 - 33



Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Three Months Ended December 31, 2011
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Operating Profit (Loss)
 
 
 
 
 
Advanced Engineered Materials
(3
)
 
(1
)
 
(4
)
Consumer Specialties
59

 
(1
)
 
58

Industrial Specialties
17

 

 
17

Acetyl Intermediates
67

 
(3
)
 
64

Other Activities  (1)
(43
)
 
(297
)
 
(340
)
Total
97

 
(302
)
 
(205
)
Equity Earnings, Cost - Dividend Income and Other Income (Expense)
 
 
 
 
 
Advanced Engineered Materials
36

 

 
36

Consumer Specialties

 

 

Industrial Specialties
1

 

 
1

Acetyl Intermediates
3

 

 
3

Other Activities  (1)
11

 

 
11

Total
51

 

 
51

Other Charges and Other Adjustments (2)
 
 
 
 
 
Advanced Engineered Materials
8

 

 
8

Consumer Specialties
5

 

 
5

Industrial Specialties
1

 

 
1

Acetyl Intermediates
4

 

 
4

Other Activities  (1)
1

 
306

 
307

Total
19

 
306

 
325

Adjusted EBIT
 
 
 
 
 
Advanced Engineered Materials
41

 
(1
)
 
40

Consumer Specialties
64

 
(1
)
 
63

Industrial Specialties
19

 

 
19

Acetyl Intermediates
74

 
(3
)
 
71

Other Activities  (1)
(31
)
 
9

 
(22
)
Total
167

 
4

 
171

 
 
 
 
 
 
Depreciation and Amortization Expense (3)
 
 
 
 
 
Advanced Engineered Materials
32

 

 
32

Consumer Specialties
9

 

 
9

Industrial Specialties
11

 

 
11

Acetyl Intermediates
21

 

 
21

Other Activities  (1)
3

 

 
3

Total
76

 

 
76

Operating EBITDA
 
 
 
 
 
Advanced Engineered Materials
73

 
(1
)
 
72

Consumer Specialties
73

 
(1
)
 
72

Industrial Specialties
30

 

 
30

Acetyl Intermediates
95

 
(3
)
 
92

Other Activities  (1)
(28
)
 
9

 
(19
)
Total
243

 
4

 
247

______________________________
(1)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.
(2)  
See Other charges and Other adjustments reconciliation for details.
(3)  
Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above.

EX 99.3 - 34



Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
 
Three Months Ended December 31, 2011
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
 
 
per
share
 
 
 
per
share
 
 
 
per
share
 
(In $ millions, except per share data)
Earnings (loss) from continuing operations
96

 
0.61

 
(190
)
 
(1.21
)
 
(94
)
 
(0.60
)
Deduct: Income tax (provision) benefit
2

 
 
 
112

 
 
 
114

 
 
Earnings (loss) from continuing operations before tax
94

 
 
 
(302
)
 
 
 
(208
)
 
 
Other charges and other adjustments (1)
19

 
 
 
306

 
 
 
325

 
 
Refinancing and related expenses
(2
)
 
 
 

 
 
 
(2
)
 
 
Adjusted earnings (loss) from continuing operations before tax
111

 
 
 
4

 
 
 
115

 
 
Income tax (provision) benefit on adjusted earnings (2)
(19
)
 
 
 
(2
)
 
 
 
(21
)
 
 
Noncontrolling interests

 
 
 

 
 
 

 
 
Adjusted earnings (loss) from continuing operations (3)
92

 
0.58

 
2

 
0.01

 
94

 
0.59

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted shares (in millions) (4)
Weighted average shares outstanding
156.4

 
 
 

 
 
 
156.4

 
 
Dilutive stock options
1.8

 
 
 

 
 
 
1.8

 
 
Dilutive restricted stock units
0.7

 
 
 

 
 
 
0.7

 
 
Total diluted shares
158.9

 
 
 

 
 
 
158.9

 
 
______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
The adjusted effective tax rate for the three months ended December 31, 2011 is 17% As previously reported and 18% As adjusted.
(3)  
The As adjusted amount excludes the immediate recognition of actuarial gains and losses and the impact of actual plan asset returns of 7.6% vs. expected plan asset returns of 8.06%.
(4)  
Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net:
Three Months Ended
December 31, 2011
 
 
 
(In $ millions)
 
 
Employee termination benefits
4

 
 
Kelsterbach plant relocation
4

 
 
Asset impairments
1

 
 
Total
9

 
 
 
 
 
 
Other Adjustments: ( 1)
Three Months Ended
December 31, 2011
 
Income Statement Classification
 
(In $ millions)
 
 
Business optimization
1

 
SG&A
Kelsterbach plant relocation
1

 
Cost of sales
Plant closures
3

 
Cost of sales / SG&A
Commercial disputes
1

 
SG&A
Actuarial (gain) loss on pension and postretirement plans
306

 
Cost of sales / SG&A / R&D
Other
4

 
Cost of sales
Total
316

 
 
Total other charges and other adjustments
325

 
 
______________________________
(1)  
These items are included in net earnings but not included in Other charges (gains), net.

EX 99.3 - 35



Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Three Months Ended September 30, 2011
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Net earnings (loss) 
167

 
4

 
171

(Earnings) loss from discontinued operations

 

 

Interest income
(1
)
 

 
(1
)
Interest expense
54

 

 
54

Refinancing expense

 

 

Income tax provision (benefit)
34

 
1

 
35

Other charges (gains), net (1)
24

 

 
24

Other adjustments (1)
19

 

 
19

Adjusted EBIT
297

 
5

 
302

Depreciation and amortization expense (2)
77

 

 
77

Operating EBITDA
374

 
5

 
379

 
Three Months Ended September 30, 2011
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Advanced Engineered Materials

 

 

Consumer Specialties

 

 

Industrial Specialties

 

 

Acetyl Intermediates

 

 

Other Activities  (3)

 

 

Accelerated depreciation and amortization expense

 

 

Depreciation and amortization expense (2)
77

 

 
77

Total depreciation and amortization expense
77

 

 
77

______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above.
(3)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.


EX 99.3 - 36



Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Three Months Ended September 30, 2011
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Operating Profit (Loss)
 
 
 
 
 
Advanced Engineered Materials
14

 
2

 
16

Consumer Specialties
66

 
1

 
67

Industrial Specialties
30

 
1

 
31

Acetyl Intermediates
128

 
1

 
129

Other Activities  (1)
(42
)
 

 
(42
)
Total
196

 
5

 
201

Equity Earnings, Cost - Dividend Income and Other Income (Expense)
 
 
 
 
 
Advanced Engineered Materials
53

 

 
53

Consumer Specialties

 

 

Industrial Specialties
1

 

 
1

Acetyl Intermediates
3

 

 
3

Other Activities  (1)
1

 

 
1

Total
58

 

 
58

Other Charges and Other Adjustments (2)
 
 
 
 
 
Advanced Engineered Materials
18

 

 
18

Consumer Specialties
3

 

 
3

Industrial Specialties

 

 

Acetyl Intermediates
12

 

 
12

Other Activities  (1)
10

 

 
10

Total
43

 

 
43

Adjusted EBIT
 
 
 
 
 
Advanced Engineered Materials
85

 
2

 
87

Consumer Specialties
69

 
1

 
70

Industrial Specialties
31

 
1

 
32

Acetyl Intermediates
143

 
1

 
144

Other Activities  (1)
(31
)
 

 
(31
)
Total
297

 
5

 
302

 
 
 
 
 
 
Depreciation and Amortization Expense (3)
 
 
 
 
 
Advanced Engineered Materials
27

 

 
27

Consumer Specialties
9

 

 
9

Industrial Specialties
12

 

 
12

Acetyl Intermediates
25

 

 
25

Other Activities  (1)
4

 

 
4

Total
77

 

 
77

Operating EBITDA
 
 
 
 
 
Advanced Engineered Materials
112

 
2

 
114

Consumer Specialties
78

 
1

 
79

Industrial Specialties
43

 
1

 
44

Acetyl Intermediates
168

 
1

 
169

Other Activities  (1)
(27
)
 

 
(27
)
Total
374

 
5

 
379

______________________________
(1)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.
(2)  
See Other charges and Other adjustments reconciliation for details.
(3)  
Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above.

EX 99.3 - 37



Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
 
Three Months Ended September 30, 2011
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
 
 
per
share
 
 
 
per
share
 
 
 
per
share
 
(In $ millions, except per share data)
Earnings (loss) from continuing operations
167

 
1.05

 
4

 
0.03

 
171

 
1.08

Deduct: Income tax (provision) benefit
(34
)
 
 
 
(1
)
 
 
 
(35
)
 
 
Earnings (loss) from continuing operations before tax
201

 
 
 
5

 
 
 
206

 
 
Other charges and other adjustments (1)
43

 
 
 

 
 
 
43

 
 
Refinancing and related expenses
(1
)
 
 
 

 
 
 
(1
)
 
 
Adjusted earnings (loss) from continuing operations before tax
243

 
 
 
5

 
 
 
248

 
 
Income tax (provision) benefit on adjusted earnings (2)
(41
)
 
 
 
(4
)
 
 
 
(45
)
 
 
Noncontrolling interests

 
 
 

 
 
 

 
 
Adjusted earnings (loss) from continuing operations
202

 
1.27

 
1

 
0.01

 
203

 
1.28

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted shares (in millions) (3)
Weighted average shares outstanding
156.2

 
 
 

 
 
 
156.2

 
 
Dilutive stock options
1.9

 
 
 

 
 
 
1.9

 
 
Dilutive restricted stock units
0.9

 
 
 

 
 
 
0.9

 
 
Total diluted shares
159.0

 
 
 

 
 
 
159.0

 
 
______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
The adjusted effective tax rate for the three months ended September 30, 2011 is 17% as previously reported and 18% as adjusted.
(3)  
Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net:
Three Months Ended
September 30, 2011
 
 
 
(In $ millions)
 
 
Employee termination benefits
5

 
 
Kelsterbach plant relocation
14

 
 
Plumbing actions
(2
)
 
 
Commercial disputes
7

 
 
Total
24

 
 
 
 
 
 
Other Adjustments: ( 1)
Three Months Ended
September 30, 2011
 
Income Statement Classification
 
(In $ millions)
 
 
Business optimization
2

 
SG&A
Kelsterbach plant relocation
5

 
Cost of sales
Plant closures
2

 
Cost of sales / SG&A
(Gain) loss on disposition of assets
(1
)
 
(Gain) loss on disposition
Commercial disputes
7

 
Cost of sales
Other
4

 
Cost of sales
Total
19

 
 
Total other charges and other adjustments
43

 
 
______________________________
(1)  
These items are included in net earnings but not included in Other charges (gains), net.

EX 99.3 - 38



Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Three Months Ended June 30, 2011
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Net earnings (loss) 
203

 
3

 
206

(Earnings) loss from discontinued operations
2

 

 
2

Interest income

 

 

Interest expense
57

 

 
57

Refinancing expense
3

 

 
3

Income tax provision (benefit)
75

 
1

 
76

Other charges (gains), net (1)
18

 

 
18

Other adjustments (1)
15

 

 
15

Adjusted EBIT
373

 
4

 
377

Depreciation and amortization expense (2)
68

 

 
68

Operating EBITDA
441

 
4

 
445

 
Three Months Ended June 30, 2011
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Advanced Engineered Materials
1

 

 
1

Consumer Specialties
3

 

 
3

Industrial Specialties

 

 

Acetyl Intermediates

 

 

Other Activities  (3)

 

 

Accelerated depreciation and amortization expense
4

 

 
4

Depreciation and amortization expense (2)
68

 

 
68

Total depreciation and amortization expense
72

 

 
72

______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above.
(3)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.


EX 99.3 - 39



Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Three Months Ended June 30, 2011
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Operating Profit (Loss)
 
 
 
 
 
Advanced Engineered Materials
27

 

 
27

Consumer Specialties
48

 
1

 
49

Industrial Specialties
28

 

 
28

Acetyl Intermediates
152

 
1

 
153

Other Activities  (1)
(46
)
 
2

 
(44
)
Total
209

 
4

 
213

Equity Earnings, Cost - Dividend Income and Other Income (Expense)
 
 
 
 
 
Advanced Engineered Materials
39

 

 
39

Consumer Specialties
79

 

 
79

Industrial Specialties

 

 

Acetyl Intermediates
2

 

 
2

Other Activities  (1)
11

 

 
11

Total
131

 

 
131

Other Charges and Other Adjustments (2)
 
 
 
 
 
Advanced Engineered Materials
22

 

 
22

Consumer Specialties
10

 

 
10

Industrial Specialties

 

 

Acetyl Intermediates
(2
)
 

 
(2
)
Other Activities  (1)
3

 

 
3

Total
33

 

 
33

Adjusted EBIT
 
 
 
 
 
Advanced Engineered Materials
88

 

 
88

Consumer Specialties
137

 
1

 
138

Industrial Specialties
28

 

 
28

Acetyl Intermediates
152

 
1

 
153

Other Activities  (1)
(32
)
 
2

 
(30
)
Total
373

 
4

 
377

 
 
 
 
 
 
Depreciation and Amortization Expense (3)
 
 
 
 
 
Advanced Engineered Materials
19

 

 
19

Consumer Specialties
10

 

 
10

Industrial Specialties
12

 

 
12

Acetyl Intermediates
25

 

 
25

Other Activities  (1)
2

 

 
2

Total
68

 

 
68

Operating EBITDA
 
 
 
 
 
Advanced Engineered Materials
107

 

 
107

Consumer Specialties
147

 
1

 
148

Industrial Specialties
40

 

 
40

Acetyl Intermediates
177

 
1

 
178

Other Activities  (1)
(30
)
 
2

 
(28
)
Total
441

 
4

 
445

______________________________
(1)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.
(2)  
See Other charges and Other adjustments reconciliation for details.
(3)  
Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above.

EX 99.3 - 40



Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
 
Three Months Ended June 30, 2011
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
 
 
per
share
 
 
 
per
share
 
 
 
per
share
 
(In $ millions, except per share data)
Earnings (loss) from continuing operations
205

 
1.29

 
3

 
0.01

 
208

 
1.30

Deduct: Income tax (provision) benefit
(75
)
 
 
 
(1
)
 
 
 
(76
)
 
 
Earnings (loss) from continuing operations before tax
280

 
 
 
4

 
 
 
284

 
 
Other charges and other adjustments (1)
33

 
 
 

 
 
 
33

 
 
Refinancing and related expenses
6

 
 
 

 
 
 
6

 
 
Adjusted earnings (loss) from continuing operations before tax
319

 
 
 
4

 
 
 
323

 
 
Income tax (provision) benefit on adjusted earnings (2)
(54
)
 
 
 
(4
)
 
 
 
(58
)
 
 
Noncontrolling interests

 
 
 

 
 
 

 
 
Adjusted earnings (loss) from continuing operations
265

 
1.66

 

 

 
265

 
1.66

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted shares (in millions) (3)
Weighted average shares outstanding
156.3

 
 
 

 
 
 
156.3

 
 
Dilutive stock options
2.0

 
 
 

 
 
 
2.0

 
 
Dilutive restricted stock units
0.9

 
 
 

 
 
 
0.9

 
 
Total diluted shares
159.2

 
 
 

 
 
 
159.2

 
 
______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
The adjusted effective tax rate for the three months ended June 30, 2011 is 17% as previously reported and 18% as adjusted.
(3)  
Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net:
Three Months Ended
June 30, 2011
 
 
 
(In $ millions)
 
 
Employee termination benefits
9

 
 
Kelsterbach plant relocation
16

 
 
Plumbing actions
(4
)
 
 
Commercial disputes
(2
)
 
 
Other
(1
)
 
 
Total
18

 
 
 
 
 
 
Other Adjustments: ( 1)
Three Months Ended
June 30, 2011
 
Income Statement Classification
 
(In $ millions)
 
 
Business optimization
2

 
SG&A
Kelsterbach plant relocation
5

 
Cost of sales
Plant closures
7

 
Cost of sales / SG&A
(Gain) loss on disposition of assets
(1
)
 
(Gain) loss on disposition
Write-off of other productive assets
(1
)
 
Cost of sales
Other
3

 
Cost of sales
Total
15

 
 
Total other charges and other adjustments
33

 
 
______________________________
(1)  
These items are included in net earnings but not included in Other charges (gains), net.


EX 99.3 - 41



Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Three Months Ended March 31, 2011
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Net earnings (loss) 
142

 
3

 
145

(Earnings) loss from discontinued operations
(4
)
 

 
(4
)
Interest income
(1
)
 

 
(1
)
Interest expense
55

 

 
55

Refinancing expense

 

 

Income tax provision (benefit)
42

 
2

 
44

Other charges (gains), net (1)
(3
)
 

 
(3
)
Other adjustments (1)
7

 

 
7

Adjusted EBIT
238

 
5

 
243

Depreciation and amortization expense (2)
66

 

 
66

Operating EBITDA
304

 
5

 
309

 
Three Months Ended March 31, 2011
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Advanced Engineered Materials
2

 

 
2

Consumer Specialties
4

 

 
4

Industrial Specialties

 

 

Acetyl Intermediates

 

 

Other Activities  (3)

 

 

Accelerated depreciation and amortization expense
6

 

 
6

Depreciation and amortization expense (2)
66

 

 
66

Total depreciation and amortization expense
72

 

 
72

______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above.
(3)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.


EX 99.3 - 42



Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
 
Three Months Ended March 31, 2011
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
(In $ millions)
Operating Profit (Loss)
 
 
 
 
 
Advanced Engineered Materials
38

 
2

 
40

Consumer Specialties
54

 
1

 
55

Industrial Specialties
25

 
1

 
26

Acetyl Intermediates
112

 

 
112

Other Activities  (1)
(41
)
 
1

 
(40
)
Total
188

 
5

 
193

Equity Earnings, Cost - Dividend Income and Other Income (Expense)
 
 
 
 
 
Advanced Engineered Materials
35

 

 
35

Consumer Specialties
1

 

 
1

Industrial Specialties

 

 

Acetyl Intermediates
2

 

 
2

Other Activities  (1)
8

 

 
8

Total
46

 

 
46

Other Charges and Other Adjustments (2)
 
 
 
 
 
Advanced Engineered Materials
12

 

 
12

Consumer Specialties
5

 

 
5

Industrial Specialties

 

 

Acetyl Intermediates
(17
)
 

 
(17
)
Other Activities  (1)
4

 

 
4

Total
4

 

 
4

Adjusted EBIT
 
 
 
 
 
Advanced Engineered Materials
85

 
2

 
87

Consumer Specialties
60

 
1

 
61

Industrial Specialties
25

 
1

 
26

Acetyl Intermediates
97

 

 
97

Other Activities  (1)
(29
)
 
1

 
(28
)
Total
238

 
5

 
243

 
 
 
 
 
 
Depreciation and Amortization Expense (3)
 
 
 
 
 
Advanced Engineered Materials
19

 

 
19

Consumer Specialties
8

 

 
8

Industrial Specialties
10

 

 
10

Acetyl Intermediates
25

 

 
25

Other Activities  (1)
4

 

 
4

Total
66

 

 
66

Operating EBITDA
 
 
 
 
 
Advanced Engineered Materials
104

 
2

 
106

Consumer Specialties
68

 
1

 
69

Industrial Specialties
35

 
1

 
36

Acetyl Intermediates
122

 

 
122

Other Activities  (1)
(25
)
 
1

 
(24
)
Total
304

 
5

 
309

______________________________
(1)  
Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.
(2)  
See Other charges and Other adjustments reconciliation for details.
(3)  
Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above.

EX 99.3 - 43



Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
 
Three Months Ended March 31, 2011
 
As Previously
Reported
 
Effect of Change
 
As Adjusted
 
 
 
per
share
 
 
 
per
share
 
 
 
per
share
 
(In $ millions, except per share data)
Earnings (loss) from continuing operations
138

 
0.87

 
3

 
0.01

 
141

 
0.88

Deduct: Income tax (provision) benefit
(42
)
 
 
 
(2
)
 
 
 
(44
)
 
 
Earnings (loss) from continuing operations before tax
180

 
 
 
5

 
 
 
185

 
 
Other charges and other adjustments (1)
4

 
 
 

 
 
 
4

 
 
Refinancing and related expenses

 
 
 

 
 
 

 
 
Adjusted earnings (loss) from continuing operations before tax
184

 
 
 
5

 
 
 
189

 
 
Income tax (provision) benefit on adjusted earnings (2)
(31
)
 
 
 
(3
)
 
 
 
(34
)
 
 
Noncontrolling interests

 
 
 

 
 
 

 
 
Adjusted earnings (loss) from continuing operations
153

 
0.96

 
2

 
0.02

 
155

 
0.98

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted shares (in millions) (3)
Weighted average shares outstanding
156.0

 
 
 

 
 
 
156.0

 
 
Dilutive stock options
2.0

 
 
 

 
 
 
2.0

 
 
Dilutive restricted stock units
0.7

 
 
 

 
 
 
0.7

 
 
Total diluted shares
158.7

 
 
 

 
 
 
158.7

 
 
______________________________
(1)  
See Other charges and Other adjustments reconciliation for details.
(2)  
The adjusted effective tax rate for the three months ended March 31, 2011 is 17% as previously reported and 18% as adjusted.
(3)  
Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net:
Three Months Ended
March 31, 2011
 
 
 
(In $ millions)
 
 
Employee termination benefits
4

 
 
Kelsterbach plant relocation
13

 
 
Commercial disputes
(20
)
 
 
Total
(3
)
 
 
 
 
 
 
Other Adjustments: ( 1)
Three Months Ended
March 31, 2011
 
Income Statement Classification
 
(In $ millions)
 
 
Business optimization
3

 
SG&A
Kelsterbach plant relocation
(3
)
 
Cost of sales
Plant closures
6

 
Cost of sales / SG&A
(Gain) loss on disposition of assets
1

 
(Gain) loss on disposition
Total
7

 
 
Total other charges and other adjustments
4

 
 
______________________________
(1)  
These items are included in net earnings but not included in Other charges (gains), net.


EX 99.3 - 44