þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the quarterly period ended September 30, 2009 | ||
or
|
||
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware
(State or Other Jurisdiction of Incorporation or Organization) |
98-0420726
(I.R.S. Employer Identification No.) |
|
1601 West LBJ Freeway,
Dallas, TX (Address of Principal Executive Offices) |
75234-6034
(Zip Code) |
2
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||||||
(In $ millions, except for per share data) | ||||||||||||||||||||
Net sales
|
1,304 | 1,823 | 3,694 | 5,537 | ||||||||||||||||
Cost of sales
|
(1,038 | ) | (1,490 | ) | (2,980 | ) | (4,390 | ) | ||||||||||||
Gross profit
|
266 | 333 | 714 | 1,147 | ||||||||||||||||
Selling, general and administrative expenses
|
(110 | ) | (142 | ) | (338 | ) | (416 | ) | ||||||||||||
Amortization of intangible assets (primarily customer-related
intangible assets)
|
(20 | ) | (19 | ) | (58 | ) | (58 | ) | ||||||||||||
Research and development expenses
|
(18 | ) | (18 | ) | (56 | ) | (59 | ) | ||||||||||||
Other (charges) gains, net
|
(96 | ) | (1 | ) | (123 | ) | (24 | ) | ||||||||||||
Foreign exchange gain (loss), net
|
(2 | ) | (1 | ) | 1 | 3 | ||||||||||||||
Gain (loss) on disposition of businesses and assets, net
|
45 | (1 | ) | 41 | (1 | ) | ||||||||||||||
Operating profit
|
65 | 151 | 181 | 592 | ||||||||||||||||
Equity in net earnings (loss) of affiliates
|
19 | 19 | 44 | 46 | ||||||||||||||||
Interest expense
|
(51 | ) | (65 | ) | (156 | ) | (195 | ) | ||||||||||||
Interest income
|
2 | 8 | 7 | 27 | ||||||||||||||||
Dividend income cost investments
|
19 | 35 | 81 | 138 | ||||||||||||||||
Other income (expense), net
|
(5 | ) | 4 | (2 | ) | 9 | ||||||||||||||
Earnings (loss) from continuing operations before tax
|
49 | 152 | 155 | 617 | ||||||||||||||||
Income tax (provision) benefit
|
350 | 12 | 328 | (106 | ) | |||||||||||||||
Earnings (loss) from continuing operations
|
399 | 164 | 483 | 511 | ||||||||||||||||
Earnings (loss) from operation of discontinued operations
|
- | (8 | ) | - | (120 | ) | ||||||||||||||
Income tax (provision) benefit from discontinued operations
|
- | 2 | - | 45 | ||||||||||||||||
Earnings (loss) from discontinued operations
|
- | (6 | ) | - | (75 | ) | ||||||||||||||
Net earnings (loss)
|
399 | 158 | 483 | 436 | ||||||||||||||||
Less: Net earnings (loss) attributable to noncontrolling
|
||||||||||||||||||||
interests
|
- | - | - | (1 | ) | |||||||||||||||
Net earnings (loss) attributable to Celanese Corporation
|
399 | 158 | 483 | 437 | ||||||||||||||||
Cumulative preferred stock dividends
|
(3 | ) | (3 | ) | (8 | ) | (8 | ) | ||||||||||||
Net earnings (loss) available to common shareholders
|
396 | 155 | 475 | 429 | ||||||||||||||||
Amounts attributable to Celanese Corporation
|
||||||||||||||||||||
Earnings (loss) from continuing operations
|
399 | 164 | 483 | 512 | ||||||||||||||||
Earnings (loss) from discontinued operations
|
- | (6 | ) | - | (75 | ) | ||||||||||||||
Net earnings (loss)
|
399 | 158 | 483 | 437 | ||||||||||||||||
Earnings (loss) per common share basic
|
||||||||||||||||||||
Continuing operations
|
2.76 | 1.09 | 3.31 | 3.36 | ||||||||||||||||
Discontinued operations
|
- | (0.04 | ) | - | (0.50 | ) | ||||||||||||||
Net earnings (loss) basic
|
2.76 | 1.05 | 3.31 | 2.86 | ||||||||||||||||
Earnings (loss) per common share diluted
|
||||||||||||||||||||
Continuing operations
|
2.53 | 1.01 | 3.08 | 3.08 | ||||||||||||||||
Discontinued operations
|
- | (0.04 | ) | - | (0.45 | ) | ||||||||||||||
Net earnings (loss) diluted
|
2.53 | 0.97 | 3.08 | 2.63 | ||||||||||||||||
Weighted average shares basic
|
143,591,231 | 147,063,241 | 143,542,405 | 149,976,915 | ||||||||||||||||
Weighted average shares diluted
|
157,562,916 | 162,911,689 | 156,678,265 | 166,008,010 |
3
4
Nine Months Ended
|
||||||||||
September 30, 2009 | ||||||||||
Shares Outstanding | Amount | |||||||||
(In $ millions, except share data) | ||||||||||
Preferred stock
|
||||||||||
Balance as of the beginning of the period
|
9,600,000 | - | ||||||||
Issuance of preferred stock
|
- | - | ||||||||
Balance as of the end of the period
|
9,600,000 | - | ||||||||
Series A common stock
|
||||||||||
Balance as of the beginning of the period
|
143,505,708 | - | ||||||||
Stock option exercises
|
72,601 | - | ||||||||
Purchases of treasury stock, including related fees
|
- | - | ||||||||
Stock awards
|
22,791 | - | ||||||||
Balance as of the end of the period
|
143,601,100 | - | ||||||||
Treasury stock
|
||||||||||
Balance as of the beginning of the period
|
20,601,686 | (781 | ) | |||||||
Purchases of treasury stock, including related fees
|
- | - | ||||||||
Balance as of the end of the period
|
20,601,686 | (781 | ) | |||||||
Additional paid-in capital
|
||||||||||
Balance as of the beginning of the period
|
495 | |||||||||
Stock-based compensation, net of tax
|
7 | |||||||||
Stock option exercises
|
1 | |||||||||
Balance as of the end of the period
|
503 | |||||||||
Retained earnings
|
||||||||||
Balance as of the beginning of the period
|
1,047 | |||||||||
Net earnings (loss) attributable to Celanese Corporation
|
483 | |||||||||
Series A common stock dividends
|
(17 | ) | ||||||||
Preferred stock dividends
|
(8 | ) | ||||||||
Balance as of the end of the period
|
1,505 | |||||||||
Accumulated other comprehensive income (loss), net
|
||||||||||
Balance as of the beginning of the period
|
(579 | ) | ||||||||
Unrealized gain (loss) on securities
|
(1 | ) | ||||||||
Foreign currency translation
|
31 | |||||||||
Unrealized gain (loss) on interest rate swaps
|
7 | |||||||||
Pension and postretirement benefits
|
(1 | ) | ||||||||
Balance as of the end of the period
|
(543 | ) | ||||||||
Total Celanese Corporation shareholders equity
|
684 | |||||||||
Noncontrolling interests
|
||||||||||
Balance as of the beginning of the period
|
2 | |||||||||
Net earnings (loss) attributable to noncontrolling interests
|
- | |||||||||
Balance as of the end of the period
|
2 | |||||||||
Total shareholders equity
|
686 | |||||||||
Comprehensive income (loss)
|
||||||||||
Net earnings (loss)
|
483 | |||||||||
Other comprehensive income (loss), net of tax
|
||||||||||
Unrealized gain (loss) on securities
|
(1 | ) | ||||||||
Foreign currency translation
|
31 | |||||||||
Unrealized gain (loss) on interest rate swaps
|
7 | |||||||||
Pension and postretirement benefits
|
(1 | ) | ||||||||
Total comprehensive income (loss), net of tax
|
519 | |||||||||
Comprehensive income (loss) attributable to noncontrolling
interests
|
- | |||||||||
Comprehensive income (loss) attributable to Celanese Corporation
|
519 | |||||||||
5
Nine Months Ended
|
||||||||||
September 30, | ||||||||||
2009 | 2008 | |||||||||
(In $ millions) | ||||||||||
Operating activities
|
||||||||||
Net earnings (loss)
|
483 | 436 | ||||||||
Adjustments to reconcile net earnings (loss) to net cash
provided by operating activities:
|
||||||||||
Other charges (gains), net of amounts used
|
77 | 19 | ||||||||
Depreciation, amortization and accretion
|
242 | 272 | ||||||||
Deferred income taxes, net
|
(367 | ) | (5 | ) | ||||||
(Gain) loss on disposition of businesses and assets, net
|
(41 | ) | (2 | ) | ||||||
Other, net
|
8 | 30 | ||||||||
Operating cash provided by (used in) discontinued operations
|
(1 | ) | 10 | |||||||
Changes in operating assets and liabilities:
|
||||||||||
Trade receivables third party and affiliates, net
|
(79 | ) | (14 | ) | ||||||
Inventories
|
86 | (120 | ) | |||||||
Other assets
|
40 | 58 | ||||||||
Trade payables third party and affiliates
|
24 | (43 | ) | |||||||
Other liabilities
|
(64 | ) | (296 | ) | ||||||
Net cash provided by operating activities
|
408 | 345 | ||||||||
Investing activities
|
||||||||||
Capital expenditures on property, plant and equipment
|
(130 | ) | (212 | ) | ||||||
Acquisitions and related fees, net of cash acquired
|
(1 | ) | (1 | ) | ||||||
Proceeds from sale of businesses and assets, net
|
168 | 7 | ||||||||
Deferred proceeds on Ticona Kelsterbach plant relocation
|
412 | 311 | ||||||||
Capital expenditures related to Ticona Kelsterbach plant
relocation
|
(248 | ) | (122 | ) | ||||||
Proceeds from sale of marketable securities
|
15 | 147 | ||||||||
Purchases of marketable securities
|
- | (128 | ) | |||||||
Settlement of cross currency swap agreement
|
- | (93 | ) | |||||||
Other, net
|
(25 | ) | (78 | ) | ||||||
Net cash provided by (used in) investing activities
|
191 | (169 | ) | |||||||
Financing activities
|
||||||||||
Short-term borrowings (repayments), net
|
31 | 8 | ||||||||
Proceeds from long-term debt
|
- | 13 | ||||||||
Repayments of long-term debt
|
(56 | ) | (31 | ) | ||||||
Refinancing costs
|
(3 | ) | - | |||||||
Purchases of treasury stock, including related fees
|
- | (378 | ) | |||||||
Stock option exercises
|
1 | 18 | ||||||||
Series A common stock dividends
|
(17 | ) | (18 | ) | ||||||
Preferred stock dividends
|
(8 | ) | (8 | ) | ||||||
Other, net
|
- | (6 | ) | |||||||
Net cash used in financing activities
|
(52 | ) | (402 | ) | ||||||
Exchange rate effects on cash and cash equivalents
|
70 | (15 | ) | |||||||
Net increase (decrease) in cash and cash equivalents
|
617 | (241 | ) | |||||||
Cash and cash equivalents at beginning of period
|
676 | 825 | ||||||||
Cash and cash equivalents at end of period
|
1,293 | 584 | ||||||||
6
1. | Description of the Company and Basis of Presentation |
2. | Recent Accounting Pronouncements |
7
8
3. | Asset Sales and Plant Closures |
4. | Inventories |
As of
|
As of
|
|||||||
September 30,
|
December 31,
|
|||||||
2009 | 2008 | |||||||
(In $ millions) | ||||||||
Finished goods
|
336 | 434 | ||||||
Work-in-process
|
23 | 24 | ||||||
Raw materials and supplies
|
108 | 119 | ||||||
Total
|
467 | 577 | ||||||
9
5. | Marketable Securities, at Fair Value |
Three months ended
|
Nine months ended
|
|||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||||||
(In $ millions) | ||||||||||||||||||||
Proceeds from sale of securities
|
- | 51 | 15 | 147 | ||||||||||||||||
Realized gain on sale of securities
|
1 | - | 4 | 3 | ||||||||||||||||
Realized loss on sale of securities
|
- | (2 | ) | - | (5 | ) | ||||||||||||||
Net realized gain (loss) on sale of securities
|
1 | (2 | ) | 4 | (2 | ) | ||||||||||||||
Gross
|
Gross
|
|||||||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||||||
Cost | Gain | Loss | Value | |||||||||||||||||
(In $ millions) | ||||||||||||||||||||
US government debt securities
|
28 | 5 | - | 33 | ||||||||||||||||
US corporate debt securities
|
1 | - | - | 1 | ||||||||||||||||
Total debt securities
|
29 | 5 | - | 34 | ||||||||||||||||
Equity securities
|
56 | - | (6 | ) | 50 | |||||||||||||||
Money market deposits and other securities
|
3 | - | - | 3 | ||||||||||||||||
As of September 30, 2009
|
88 | 5 | (6 | ) | 87 | |||||||||||||||
US government debt securities
|
35 | 17 | - | 52 | ||||||||||||||||
US corporate debt securities
|
3 | - | - | 3 | ||||||||||||||||
Total debt securities
|
38 | 17 | - | 55 | ||||||||||||||||
Equity securities
|
55 | - | (13 | ) | 42 | |||||||||||||||
Money market deposits and other securities
|
3 | - | - | 3 | ||||||||||||||||
As of December 31, 2008
|
96 | 17 | (13 | ) | 100 | |||||||||||||||
10
Cost | Value | |||||||
(In $ millions) | ||||||||
Within one year
|
4 | 4 | ||||||
From one to five years
|
- | - | ||||||
From six to ten years
|
- | - | ||||||
Greater than ten years
|
28 | 33 | ||||||
Total
|
32 | 37 | ||||||
6. | Goodwill and Intangible Assets, Net |
Advanced
|
||||||||||||||||||||
Engineered
|
Consumer
|
Industrial
|
Acetyl
|
|||||||||||||||||
Materials | Specialties | Specialties | Intermediates | Total | ||||||||||||||||
(In $ millions) | ||||||||||||||||||||
As of December 31, 2008
|
258 | 252 | 34 | 235 | 779 | |||||||||||||||
Exchange rate changes
|
7 | 7 | 2 | 11 | 27 | |||||||||||||||
As of September 30, 2009
|
265 | 259 | 36 | 246 | 806 | |||||||||||||||
11
Customer-
|
Covenants
|
|||||||||||||||||||||||||||||
Trademarks
|
Related
|
not to
|
||||||||||||||||||||||||||||
and Trade
|
Intangible
|
Developed
|
Compete
|
|||||||||||||||||||||||||||
names | Licenses | Assets | Technology | and Other | Total | |||||||||||||||||||||||||
(In $ millions) | ||||||||||||||||||||||||||||||
Gross Asset Value
|
||||||||||||||||||||||||||||||
As of December 31, 2008
|
82 | 29 | 537 | 12 | 12 | 672 | ||||||||||||||||||||||||
Exchange rate changes
|
3 | - | 22 | - | - | 25 | ||||||||||||||||||||||||
As of September 30, 2009
|
85 | 29 | 559 | 12 | 12 | 697 | ||||||||||||||||||||||||
Accumulated Amortization
|
||||||||||||||||||||||||||||||
As of December 31, 2008
|
- | (3 | ) | (285 | ) | (10 | ) | (10 | ) | (308 | ) | |||||||||||||||||||
Amortization
|
(5 | ) | (2 | ) | (49 | ) | (1 | ) | (1 | ) | (58 | ) | ||||||||||||||||||
Exchange rate changes
|
- | - | (15 | ) | - | (1 | ) | (16 | ) | |||||||||||||||||||||
As of September 30, 2009
|
(5 | ) | (5 | ) | (349 | ) | (11 | ) | (12 | ) | (382 | ) | ||||||||||||||||||
Net book value
|
80 | 24 | 210 | 1 | - | 315 | ||||||||||||||||||||||||
12
7. | Debt |
As of
|
As of
|
|||||||
September 30,
|
December 31,
|
|||||||
2009 | 2008 | |||||||
(In $ millions) | ||||||||
Short-term borrowings and current installments of long-term
debt third party and affiliates
|
||||||||
Current installments of long-term debt
|
78 | 81 | ||||||
Short-term borrowings, principally comprised of amounts due to
affiliates
|
187 | 152 | ||||||
Total
|
265 | 233 | ||||||
Long-term debt
|
||||||||
Senior credit facilities: Term loan facility due 2014
|
2,802 | 2,794 | ||||||
Term notes 7.125%, due 2009
|
- | 14 | ||||||
Pollution control and industrial revenue bonds, interest rates
ranging from 5.7% to 6.7%, due at various dates through 2030
|
181 | 181 | ||||||
Obligations under capital leases and other secured and unsecured
borrowings due at various dates through 2054
|
240 | 211 | ||||||
Other bank obligations, interest rates ranging from 2.3% to
5.3%, due at various dates through 2014
|
167 | 181 | ||||||
Subtotal
|
3,390 | 3,381 | ||||||
Less: Current installments of long-term debt
|
78 | 81 | ||||||
Total
|
3,312 | 3,300 | ||||||
13
First Lien Senior Secured
|
||
Leverage Ratio | ||
September 30, 2009
|
5.75 to 1.00 | |
December 31, 2009
|
5.25 to 1.00 | |
March 31, 2010
|
4.75 to 1.00 | |
June 30, 2010
|
4.25 to 1.00 | |
September 30, 2010
|
4.25 to 1.00 | |
December 31, 2010 and thereafter
|
3.90 to 1.00 |
14
8. | Other Liabilities |
As of
|
As of
|
|||||||||
September 30,
|
December 31,
|
|||||||||
2009 | 2008 | |||||||||
(In $ millions) | ||||||||||
Salaries and benefits
|
107 | 107 | ||||||||
Environmental
|
17 | 19 | ||||||||
Restructuring
|
102 | 32 | ||||||||
Insurance
|
34 | 34 | ||||||||
Asset retirement obligations
|
19 | 9 | ||||||||
Derivatives
|
76 | 67 | ||||||||
Current portion of benefit obligations
|
57 | 57 | ||||||||
Interest
|
24 | 54 | ||||||||
Sales and use tax/foreign withholding tax payable
|
10 | 16 | ||||||||
Uncertain tax positions
|
6 | - | ||||||||
Other
|
154 | 179 | ||||||||
Total
|
606 | 574 | ||||||||
As of
|
As of
|
|||||||||
September 30,
|
December 31,
|
|||||||||
2009 | 2008 | |||||||||
(In $ millions) | ||||||||||
Environmental
|
86 | 79 | ||||||||
Insurance
|
78 | 85 | ||||||||
Deferred revenue
|
50 | 56 | ||||||||
Deferred proceeds (see Notes 3 and 19)
|
860 | 370 | ||||||||
Asset retirement obligations
|
34 | 40 | ||||||||
Derivatives
|
55 | 76 | ||||||||
Other
|
107 | 100 | ||||||||
Total
|
1,270 | 806 | ||||||||
9. | Benefit Obligations |
Postretirement
|
Postretirement
|
|||||||||||||||||||||||||||||||||||||||
Pension Benefits | Benefits | Pension Benefits | Benefits | |||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||||||||||||||||
(In $ millions) | ||||||||||||||||||||||||||||||||||||||||
Service cost
|
8 | 8 | - | - | 22 | 24 | 1 | 1 | ||||||||||||||||||||||||||||||||
Interest cost
|
50 | 50 | 5 | 4 | 145 | 149 | 13 | 13 | ||||||||||||||||||||||||||||||||
Expected return on plan assets
|
(54 | ) | (56 | ) | - | - | (156 | ) | (167 | ) | - | - | ||||||||||||||||||||||||||||
Recognized actuarial (gain) loss
|
- | 1 | (1 | ) | (1 | ) | 1 | 1 | (4 | ) | (3 | ) | ||||||||||||||||||||||||||||
Settlement (gain) loss
|
- | - | - | - | 1 | - | - | - | ||||||||||||||||||||||||||||||||
Total
|
4 | 3 | 4 | 3 | 13 | 7 | 10 | 11 | ||||||||||||||||||||||||||||||||
15
10. | Environmental |
16
11. | Shareholders Equity |
12. | Commitments and Contingencies |
17
| Cox, et al. v. Hoechst Celanese Corporation, et al. , No. 94-0047 (Chancery Ct., Obion County, Tennessee) (class was certified). | |
| Couture, et al. v. Shell Oil Company, et al. , No. 200-06-000001-985 (Quebec Superior Court, Canada). | |
| Dilday, et al. v. Hoechst Celanese Corporation, et al. , No. 15187 (Chancery Ct., Weakley County, Tennessee). | |
| Furlan v. Shell Oil Company, et al. , No. C967239 (British Columbia Supreme Court, Vancouver Registry, Canada). | |
| Gariepy, et al. v. Shell Oil Company, et al. , No. 30781/99 (Ontario Court General Division, Canada). | |
| Shelter General Insurance Co., et al. v. Shell Oil Company, et al. , No. 16809 (Chancery Ct., Weakley County, Tennessee). | |
| St. Croix Ltd., et al. v. Shell Oil Company, et al. , No. 1997/467 (Territorial Ct., St. Croix Division, the US Virgin Islands). | |
| Tranter v. Shell Oil Company, et al. , No. 46565/97 (Ontario Court General Division, Canada). |
18
19
20
21
| The Company will indemnify Hoechst, and its legal successors, against those liabilities up to 250 million; | |
| Hoechst, and its legal successors, will bear those liabilities exceeding 250 million; however, the Company will reimburse Hoechst, and its legal successors, for one-third of those liabilities for amounts that exceed 750 million in the aggregate. |
22
13. | Derivative Financial Instruments |
23
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30, 2009 | September 30, 2009 | |||||||||||||||
Gain (Loss)
|
Gain (Loss)
|
|||||||||||||||
Recognized in Other
|
Gain (Loss)
|
Recognized in Other
|
Gain (Loss)
|
|||||||||||||
Comprehensive
|
Recognized in
|
Comprehensive
|
Recognized in
|
|||||||||||||
Income | Income | Income | Income | |||||||||||||
(In $ millions) | ||||||||||||||||
Derivatives designated as cash flow
hedging instruments |
||||||||||||||||
Interest rate swaps
|
(20) | (2) | (17) | (1) | (33) | (2) | (44) | (1) | ||||||||
Derivatives designated as net investment hedging instruments
|
||||||||||||||||
Euro-denominated term loan
|
- | - | - | - | ||||||||||||
Derivatives not designated as
hedging instruments |
||||||||||||||||
Foreign currency forwards and swaps
|
- | (7) | - | (22) | ||||||||||||
Total
|
(20) | (24) | (33) | (66) | ||||||||||||
(1) | Amount represents reclassification from Accumulated other comprehensive income (loss), net, and is classified as Interest expense in the unaudited interim consolidated statements of operations. | |
(2) | Amount excludes tax effect of $4 million recognized in Other comprehensive income (loss). |
14. | Fair Value Measurements |
Level 1 | unadjusted quoted prices for identical assets or liabilities in active markets accessible by the Company |
24
25
Fair Value Measurement Using | ||||||||||||
Quoted Prices in
|
||||||||||||
Active Markets for
|
Significant Other
|
|||||||||||
Identical Assets
|
Observable Inputs
|
|||||||||||
(Level 1) | (Level 2) | Total | ||||||||||
(In $ millions) | ||||||||||||
Marketable securities, at fair value
|
||||||||||||
US government debt securities
|
- | 33 | 33 | |||||||||
US corporate debt securities
|
- | 1 | 1 | |||||||||
Total debt securities
|
- | 34 | 34 | |||||||||
Equity securities
|
50 | - | 50 | |||||||||
Money market deposits and other securities
|
- | 3 | 3 | |||||||||
Derivatives not designated as hedging instruments
|
||||||||||||
Foreign currency forwards and swaps
|
- | 13 | 13 | (1) | ||||||||
Total assets as of September 30, 2009
|
50 | 50 | 100 | |||||||||
Derivatives designated as cash flow hedging instruments
|
||||||||||||
Interest rate swaps
|
- | (67) | (67) | (2) | ||||||||
Interest rate swaps
|
- | (55) | (55) | (3) | ||||||||
Derivatives not designated as hedging instruments
|
||||||||||||
Foreign currency forwards and swaps
|
- | (9) | (9) | (2) | ||||||||
Total liabilities as of September 30, 2009
|
- | (131) | (131) | |||||||||
Marketable securities, at fair value
|
||||||||||||
US government debt securities
|
- | 52 | 52 | |||||||||
US corporate debt securities
|
- | 3 | 3 | |||||||||
Total debt securities
|
- | 55 | 55 | |||||||||
Equity securities
|
42 | - | 42 | |||||||||
Money market deposits and other securities
|
- | 3 | 3 | |||||||||
Derivatives not designated as hedging instruments
|
||||||||||||
Foreign currency forwards and swaps
|
- | 54 | 54 | (1) | ||||||||
Total assets as of December 31, 2008
|
42 | 112 | 154 | |||||||||
Derivatives designated as cash flow hedging instruments
|
||||||||||||
Interest rate swaps
|
- | (42) | (42) | (2) | ||||||||
Interest rate swaps
|
- | (76) | (76) | (3) | ||||||||
Derivatives not designated as hedging instruments
|
||||||||||||
Foreign currency forwards and swaps
|
- | (25) | (25) | (2) | ||||||||
Total liabilities as of December 31, 2008
|
- | (143) | (143) | |||||||||
(1) | Included in current Other assets in the unaudited consolidated balance sheets. | |
(2) | Included in current Other liabilities in the unaudited consolidated balance sheets. | |
(3) | Included in noncurrent Other liabilities in the unaudited consolidated balance sheets. |
26
As of September 30,
|
As of December 31,
|
|||||||||||||||
2009 | 2008 | |||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
Amount | Value | Amount | Value | |||||||||||||
(In $ millions) | ||||||||||||||||
Cost investments
|
184 | - | 184 | - | ||||||||||||
Insurance contracts in nonqualified pension trusts
|
67 | 67 | 67 | 67 | ||||||||||||
Long-term debt, including current installments of long-term debt
|
3,390 | 3,224 | 3,381 | 2,404 |
15. | Other (Charges) Gains, Net |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30, | September 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(In $ millions) | ||||||||||||||||
Employee termination benefits
|
(65) | (8) | (94) | (19) | ||||||||||||
Plant/office closures
|
(20) | - | (20) | (7) | ||||||||||||
Ticona Kelsterbach plant relocation (see Note 19)
|
(4) | (3) | (10) | (8) | ||||||||||||
Plumbing actions
|
- | - | 3 | - | ||||||||||||
Insurance recoveries associated with Clear Lake, Texas
|
- | 23 | 6 | 23 | ||||||||||||
Sorbates antitrust actions (see Note 12)
|
- | 8 | - | 8 | ||||||||||||
Asset impairments
|
(7) | (21) | (8) | (21) | ||||||||||||
Total
|
(96) | (1) | (123) | (24) | ||||||||||||
27
Advanced
|
||||||||||||||||||||||||||||||
Engineered
|
Consumer
|
Industrial
|
Acetyl
|
|||||||||||||||||||||||||||
Materials | Specialties | Specialties | Intermediates | Other | Total | |||||||||||||||||||||||||
(In $ millions) | ||||||||||||||||||||||||||||||
Employee Termination Benefits
|
||||||||||||||||||||||||||||||
Reserve as of December 31, 2008
|
2 | 2 | 6 | 17 | 2 | 29 | ||||||||||||||||||||||||
Restructuring additions
|
12 | 6 | 5 | 64 | 7 | 94 | ||||||||||||||||||||||||
Cash payments
|
(6 | ) | (4 | ) | (7 | ) | (21 | ) | (5 | ) | (43 | ) | ||||||||||||||||||
Exchange rate changes
|
1 | - | - | 1 | - | 2 | ||||||||||||||||||||||||
Reserve as of September 30, 2009
|
9 | 4 | 4 | 61 | 4 | 82 | ||||||||||||||||||||||||
Plant/Office Closures
|
||||||||||||||||||||||||||||||
Reserve as of December 31, 2008
|
- | 2 | - | - | 1 | 3 | ||||||||||||||||||||||||
Restructuring additions
|
- | - | - | 20 | - | 20 | ||||||||||||||||||||||||
Transfer to demolition accrual (current Other liabilities)
|
- | (2 | ) | - | - | - | (2 | ) | ||||||||||||||||||||||
Cash payments
|
- | - | - | - | (1 | ) | (1 | ) | ||||||||||||||||||||||
Reserve as of September 30, 2009
|
- | - | - | 20 | - | 20 | ||||||||||||||||||||||||
Total
|
9 | 4 | 4 | 81 | 4 | 102 | ||||||||||||||||||||||||
28
16. | Income Taxes |
29
17. | Business Segments |
Advanced
|
||||||||||||||||||||||||||||
Engineered
|
Consumer
|
Industrial
|
Acetyl
|
Other
|
||||||||||||||||||||||||
Materials | Specialties | Specialties | Intermediates | Activities | Eliminations | Consolidated | ||||||||||||||||||||||
(In $ millions) | ||||||||||||||||||||||||||||
Three months ended
September 30, 2009 |
||||||||||||||||||||||||||||
Net sales
|
220 | 271 | 236 | 666 | (1) | - | (89 | ) | 1,304 | |||||||||||||||||||
Other (charges) gains, net
|
(6 | ) | (3 | ) | (2 | ) | (85 | ) | - | - | (96 | ) | ||||||||||||||||
Equity in net earnings
(loss) of affiliates |
11 | - | - | 2 | 6 | - | 19 | |||||||||||||||||||||
Earnings (loss) from
continuing operations before tax |
32 | 52 | 44 | (9 | ) | (70 | ) | - | 49 | |||||||||||||||||||
Depreciation and
amortization |
17 | 13 | 14 | 34 | 5 | - | 83 | |||||||||||||||||||||
Capital expenditures
|
5 | 12 | 7 | 7 | 3 | - | 34 | (3) | ||||||||||||||||||||
Three months ended September 30, 2008
|
||||||||||||||||||||||||||||
Net sales
|
272 | 295 | 378 | 1,056 | (1) | - | (178 | ) | 1,823 | |||||||||||||||||||
Other (charges) gains, net
|
(3 | ) | - | - | (5 | ) | 7 | - | (1 | ) | ||||||||||||||||||
Equity in net earnings
(loss) of affiliates |
12 | 1 | - | 1 | 5 | - | 19 | |||||||||||||||||||||
Earnings (loss) from
continuing operations before tax |
25 | 43 | 18 | 133 | (67 | ) | - | 152 | ||||||||||||||||||||
Depreciation and
amortization |
19 | 13 | 15 | 36 | 2 | - | 85 | |||||||||||||||||||||
Capital expenditures
|
16 | 15 | 18 | 21 | 3 | - | 73 | (4) |
30
Advanced
|
||||||||||||||||||||||||||||||||||||
Engineered
|
Consumer
|
Industrial
|
Acetyl
|
Other
|
||||||||||||||||||||||||||||||||
Materials | Specialties | Specialties | Intermediates | Activities | Eliminations | Consolidated | ||||||||||||||||||||||||||||||
(In $ millions) | ||||||||||||||||||||||||||||||||||||
Nine months ended
September 30, 2009 |
||||||||||||||||||||||||||||||||||||
Net sales
|
569 | 817 | 745 | 1,860 | (2) | 1 | (298 | ) | 3,694 | |||||||||||||||||||||||||||
Other (charges) gains, net
|
(19 | ) | (6 | ) | (5 | ) | (86 | ) | (7 | ) | - | (123 | ) | |||||||||||||||||||||||
Equity in net earnings
(loss) of affiliates |
26 | 1 | - | 5 | 12 | - | 44 | |||||||||||||||||||||||||||||
Earnings (loss) from
continuing operations before tax |
28 | 240 | 73 | 51 | (237 | ) | - | 155 | ||||||||||||||||||||||||||||
Depreciation and
amortization |
53 | 37 | 41 | 93 | 9 | - | 233 | |||||||||||||||||||||||||||||
Capital expenditures
|
15 | 30 | 33 | 23 | 4 | - | 105 | (3) | ||||||||||||||||||||||||||||
Goodwill and intangible
assets |
394 | 305 | 64 | 358 | - | - | 1,121 | |||||||||||||||||||||||||||||
Total assets
|
2,131 | 1,073 | 770 | 1,973 | 2,303 | - | 8,250 | |||||||||||||||||||||||||||||
Nine months ended
September 30, 2008 |
||||||||||||||||||||||||||||||||||||
Net sales
|
866 | 869 | 1,129 | 3,219 | (2) | 1 | (547 | ) | 5,537 | |||||||||||||||||||||||||||
Other (charges) gains, net
|
(9 | ) | (1 | ) | (4 | ) | (14 | ) | 4 | - | (24 | ) | ||||||||||||||||||||||||
Equity in net earnings
(loss) of affiliates |
32 | 1 | - | 3 | 10 | - | 46 | |||||||||||||||||||||||||||||
Earnings (loss) from
continuing operations before tax |
112 | 187 | 55 | 520 | (257 | ) | - | 617 | ||||||||||||||||||||||||||||
Depreciation and
amortization |
58 | 40 | 43 | 102 | 7 | - | 250 | |||||||||||||||||||||||||||||
Capital expenditures
|
43 | 35 | 47 | 62 | 7 | - | 194 | (4) | ||||||||||||||||||||||||||||
Goodwill and intangible
assets as of December 31, 2008 |
398 | 309 | 73 | 363 | - | - | 1,143 | |||||||||||||||||||||||||||||
Total assets as of
December 31, 2008 |
1,867 | 995 | 903 | 2,197 | 1,204 | - | 7,166 |
(1) | Includes $89 million and $178 million of inter-segment sales eliminated in consolidation for the three months ended September 30, 2009 and 2008, respectively. | |
(2) | Includes $298 million and $547 million of inter-segment sales eliminated in consolidation for the nine months ended September 30, 2009 and 2008, respectively. | |
(3) | Includes decrease of $0 and $25 million in accrued capital expenditures for the three and nine months ended September 30, 2009, respectively. | |
(4) | Includes decrease of $3 million and $18 million in accrued capital expenditures for the three and nine months ended September 30, 2008, respectively. |
31
18. | Earnings Per Share |
Three Months Ended September 30, | ||||||||||||||||||||
2009 | 2008 | |||||||||||||||||||
Basic | Diluted | Basic | Diluted | |||||||||||||||||
(In $ millions, except for share and per share data) | ||||||||||||||||||||
Amounts attributable to Celanese Corporation
|
||||||||||||||||||||
Earnings (loss) from continuing operations
|
399 | 399 | 164 | 164 | ||||||||||||||||
Earnings (loss) from discontinued operations
|
- | - | (6 | ) | (6 | ) | ||||||||||||||
Net earnings (loss)
|
399 | 399 | 158 | 158 | ||||||||||||||||
Less: Cumulative preferred stock dividends
|
(3 | ) | - | (3 | ) | - | ||||||||||||||
Net earnings (loss) available to common shareholders
|
396 | 399 | 155 | 158 | ||||||||||||||||
Weighted-average shares basic
|
143,591,231 | 143,591,231 | 147,063,241 | 147,063,241 | ||||||||||||||||
Dilutive stock options
|
1,730,977 | 3,367,888 | ||||||||||||||||||
Dilutive restricted stock units
|
150,672 | 418,300 | ||||||||||||||||||
Assumed conversion of preferred stock
|
12,090,036 | 12,062,260 | ||||||||||||||||||
Weighted-average shares diluted
|
157,562,916 | 162,911,689 | ||||||||||||||||||
Per share
|
||||||||||||||||||||
Earnings (loss) from continuing operations
|
2.76 | 2.53 | 1.09 | 1.01 | ||||||||||||||||
Earnings (loss) from discontinued operations
|
- | - | (0.04 | ) | (0.04 | ) | ||||||||||||||
Net earnings (loss)
|
2.76 | 2.53 | 1.05 | 0.97 | ||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||
2009 | 2008 | |||||||||||||||||||
Basic | Diluted | Basic | Diluted | |||||||||||||||||
(In $ millions, except for share and per share data) | ||||||||||||||||||||
Amounts attributable to Celanese Corporation
|
||||||||||||||||||||
Earnings (loss) from continuing operations
|
483 | 483 | 512 | 512 | ||||||||||||||||
Earnings (loss) from discontinued operations
|
- | - | (75 | ) | (75 | ) | ||||||||||||||
Net earnings (loss)
|
483 | 483 | 437 | 437 | ||||||||||||||||
Less: Cumulative preferred stock dividends
|
(8 | ) | - | (8 | ) | - | ||||||||||||||
Net earnings (loss) available to common shareholders
|
475 | 483 | 429 | 437 | ||||||||||||||||
Weighted-average shares basic
|
143,542,405 | 143,542,405 | 149,976,915 | 149,976,915 | ||||||||||||||||
Dilutive stock options
|
917,156 | 3,412,357 | ||||||||||||||||||
Dilutive restricted stock units
|
128,668 | 556,478 | ||||||||||||||||||
Assumed conversion of preferred stock
|
12,090,036 | 12,062,260 | ||||||||||||||||||
Weighted-average shares diluted
|
156,678,265 | 166,008,010 | ||||||||||||||||||
Per share
|
||||||||||||||||||||
Earnings (loss) from continuing operations
|
3.31 | 3.08 | 3.36 | 3.08 | ||||||||||||||||
Earnings (loss) from discontinued operations
|
- | - | (0.50 | ) | (0.45 | ) | ||||||||||||||
Net earnings (loss)
|
3.31 | 3.08 | 2.86 | 2.63 | ||||||||||||||||
32
Three Months
|
Nine Months
|
|||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Stock options
|
604,500 | 773,750 | 3,043,187 | 711,875 | ||||||||||||
Restricted stock units
|
419,621 | 66,250 | 378,625 | 22,083 | ||||||||||||
Total
|
1,024,121 | 840,000 | 3,421,812 | 733,958 | ||||||||||||
Nine Months Ended
|
Total From
|
|||||||||||
September 30, |
Inception Through
|
|||||||||||
2009 | 2008 | September 30, 2009 | ||||||||||
(in $ millions) | ||||||||||||
Proceeds received from Fraport
|
412 | 311 | 749 | |||||||||
Costs expensed
|
10 | 8 | 27 | |||||||||
Costs capitalized
|
270 | (1) | 130 | (1) | 513 |
(1) | Includes an increase in accrued capital expenditures of $22 million and $8 million for the nine months ended September 30, 2009 and 2008, respectively. |
20. | Subsequent Events |
33
Item 2.
Managements
Discussion and Analysis of Financial Condition and Results of
Operations
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, fuel oil
and electricity;
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 reduce production costs and improve productivity
by implementing technological improvements to existing plants;
increased price competition and the introduction of competing
products by other companies;
changes in the degree of intellectual property and other legal
protection afforded to our products;
compliance costs and potential disruption or interruption of
production due to accidents or other unforeseen events or delays
in construction of facilities;
potential liability for remedial actions under existing or
future environmental regulations;
34
Table of Contents
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; and
various other factors, both referenced and not referenced in
this Quarterly Report on
Form 10-Q.
We announced the Frankfurt, Germany Airport
(Fraport) supervisory board approved the
acceleration of the 2009 and 2010 payments of
200 million and 140 million, respectively,
required by the settlement agreement signed in June 2007. On
February 5, 2009, we received a discounted amount of
approximately 322 million ($412 million),
excluding value-added tax of 59 million
($75 million).
We shut down our vinyl acetate monomer (VAM)
production unit in Cangrejera, Mexico, and ceased VAM production
at the site during the first quarter of 2009.
Standard and Poors affirmed our ratings and revised our
outlook from positive to stable in February 2009.
We received the American Chemistry Councils
(ACC) Responsible
Care
®
Sustained Excellence Award for mid-size companies. The annual
award, the most prestigious award given under ACCs
Responsible
Care
®
initiative, recognizes companies for outstanding leadership
under ACCs Environmental Health and Safety performance
criteria.
We completed the sale of our polyvinyl alcohol
(PVOH) business to Sekisui Chemical Co., Ltd. for
the net cash purchase price of $168 million, excluding the
value of accounts receivable and payable retained by Celanese.
We agreed to a Project of Closure for our acetic
acid and vinyl acetate monomer production operations at our
Pardies, France facility. These operations are expected to cease
by December 2009. As a result of the Pardies, France Project of
Closure, we have incurred $97 million of exit costs in
2009. We may incur up to an additional $17 million in
contingent employee termination benefits related to the Pardies,
France Project of Closure.
We announced that Celanese US has amended its $650 million
revolving credit facility. The amendment lowered the total
revolver commitment to $600 million and increased the first
lien senior secured leverage ratio for a period of six quarters,
beginning June 30, 2009 and ending December 31, 2010.
We announced the creation of our new and proprietary
AOPlus
®
2
acetic acid technology, which allows for expansion up to
1.5 million tons per reactor.
We successfully started up the previously announced expansion of
our acetic acid unit in Nanjing, China. Production is expected
to ramp up during the fourth quarter of 2009. Once the expansion
is complete, the units capacity will double from 600,000
tons to 1.2 million tons annually.
We announced the expansion of our vinyl acetate/ethylene
(VAE) manufacturing facility at our Nanjing, China,
integrated chemical complex to support continued growth plans
throughout Asia. The expanded facility will double our VAE
capacity in the region and is expected to be operational in the
first half of 2011.
35
Table of Contents
Three Months Ended September 30,
Nine Months Ended September 30,
% of
% of
% of
% of
2009
Net Sales
2008
Net Sales
2009
Net Sales
2008
Net Sales
(unaudited)
(In $ millions, except for percentages)
1,304
100.0
1,823
100.0
3,694
100.0
5,537
100.0
266
20.4
333
18.3
714
19.3
1,147
20.7
(110
)
(8.4
)
(142
)
(7.8
)
(338
)
(9.1
)
(416
)
(7.5
)
(96
)
(7.4
)
(1
)
(0.1
)
(123
)
(3.3
)
(24
)
(0.4
)
65
5.0
151
8.3
181
4.9
592
10.7
19
1.5
19
1.0
44
1.2
46
0.8
(51
)
(3.9
)
(65
)
(3.6
)
(156
)
(4.2
)
(195
)
(3.5
)
19
1.5
35
1.9
81
2.2
138
2.5
49
3.8
152
8.3
155
4.2
617
11.1
399
30.6
164
9.0
483
13.1
512
9.3
-
-
(6
)
(0.3
)
-
-
(75
)
(1.4
)
399
30.6
158
8.7
483
13.1
437
7.9
83
6.4
85
4.7
233
6.3
250
4.5
As of
As of
September 30,
December 31,
2009
2008
(unaudited)
(in $ millions)
265
233
3,312
3,300
3,577
3,533
36
Table of Contents
Three Months Ended
Nine Months Ended
September 30,
September 30,
2009
2008
2009
2008
(unaudited)
(In $ millions)
(65)
(8)
(94)
(19)
(20)
-
(20)
(7)
(4)
(3)
(10)
(8)
-
-
3
-
-
23
6
23
-
8
-
8
(7)
(21)
(8)
(21)
(96)
(1)
(123)
(24)
37
Table of Contents
38
Table of Contents
Three Months Ended
Nine Months Ended
September 30,
September 30,
Change
Change
2009
2008
in $
2009
2008
in $
(unaudited)
(in $ millions)
220
272
(52
)
569
866
(297
)
271
295
(24
)
817
869
(52
)
236
378
(142
)
745
1,129
(384
)
666
1,056
(390
)
1,860
3,219
(1,359
)
-
-
-
1
1
-
(89
)
(178
)
89
(298
)
(547
)
249
1,304
1,823
(519
)
3,694
5,537
(1,843
)
(6
)
(3
)
(3
)
(19
)
(9
)
(10
)
(3
)
-
(3
)
(6
)
(1
)
(5
)
(2
)
-
(2
)
(5
)
(4
)
(1
)
(85
)
(5
)
(80
)
(86
)
(14
)
(72
)
-
7
(7
)
(7
)
4
(11
)
(96
)
(1
)
(95
)
(123
)
(24
)
(99
)
21
13
8
2
80
(78
)
52
42
10
184
138
46
44
18
26
73
55
18
(30
)
100
(130
)
22
425
(403
)
(22
)
(22
)
-
(100
)
(106
)
6
65
151
(86
)
181
592
(411
)
32
25
7
28
112
(84
)
52
43
9
240
187
53
44
18
26
73
55
18
(9
)
133
(142
)
51
520
(469
)
(70
)
(67
)
(3
)
(237
)
(257
)
20
49
152
(103
)
155
617
(462
)
17
19
(2
)
53
58
(5
)
13
13
-
37
40
(3
)
14
15
(1
)
41
43
(2
)
34
36
(2
)
93
102
(9
)
5
2
3
9
7
2
83
85
(2
)
233
250
(17
)
39
Table of Contents
Volume
Price
Currency
Other
Total
(unaudited)
(in percentages)
(14
)
(3
)
(2
)
-
(19
)
(14
)
7
(1
)
-
(8
)
(3
)
(14
)
(1
)
(20
)
(2)
(38
)
(1)
(6
)
(30
)
(1
)
-
(37
)
(8
)
(20
)
(1
)
1
(28
)
(31
)
1
(4
)
-
(34
)
(11
)
7
(2
)
-
(6
)
(14
)
(9
)
(4
)
(7
)
(2)
(34
)
(1)
(12
)
(28
)
(2
)
-
(42
)
(16
)
(17
)
(3
)
3
(33
)
(1)
Includes the effects of the captive insurance companies and the
impact of fluctuations in intersegment eliminations.
(2)
Includes changes related to the sale of PVOH on July 1,
2009.
Three Months Ended
Nine Months Ended
September 30,
September 30,
Change
Change
2009
2008
in $
2009
2008
in $
(unaudited)
(in $ millions, except for percentages)
220
272
(52
)
569
866
(297
)
(14
)%
(31
)%
(3
)%
1
%
(2
)%
(4
)%
-
-
(6
)
(3
)
(3
)
(19
)
(9
)
(10
)
21
13
8
2
80
(78
)
9.5
%
4.8
%
0.4
%
9.2
%
32
25
7
28
112
(84
)
17
19
(2
)
53
58
(5
)
40
Table of Contents
Three Months Ended
Nine Months Ended
September 30,
September 30,
Change
Change
2009
2008
in $
2009
2008
in $
(unaudited)
(in $ millions, except for percentages)
271
295
(24
)
817
869
(52
)
(14
)%
(11
)%
7
%
7
%
(1
)%
(2
)%
-
-
(3
)
-
(3
)
(6
)
(1
)
(5
)
52
42
10
184
138
46
19.2
%
14.2
%
22.5
%
15.9
%
52
43
9
240
187
53
13
13
-
37
40
(3
)
41
Table of Contents
Three Months Ended
Nine Months Ended
September 30,
September 30,
Change
Change
2009
2008
in $
2009
2008
in $
(unaudited)
(in $ millions, except for percentages)
236
378
(142
)
745
1,129
(384
)
(3
)%
(14
)%
(14
)%
(9
)%
(1
)%
(4
)%
(20
)%
(1)
(7
)%
(1)
(2
)
-
(2
)
(5
)
(4
)
(1
)
44
18
26
73
55
18
18.6
%
4.8
%
9.8
%
4.9
%
44
18
26
73
55
18
14
15
(1
)
41
43
(2
)
(1)
Includes changes related to the sale of PVOH on July 1,
2009.
42
Table of Contents
Three Months Ended
Nine Months Ended
September 30,
September 30,
Change
Change
2009
2008
in $
2009
2008
in $
(unaudited)
(in $ millions, except for percentages)
666
1,056
(390
)
1,860
3,219
(1,359
)
(6
)%
(12
)%
(30
)%
(28
)%
(1
)%
(2
)%
-
-
(85
)
(5
)
(80
)
(86
)
(14
)
(72
)
(30
)
100
(130
)
22
425
(403
)
(4.5
)%
9.5
%
1.2
%
13.2
%
(9
)
133
(142
)
51
520
(469
)
34
36
(2
)
93
102
(9
)
43
Table of Contents
44
Table of Contents
45
Table of Contents
First Lien Senior Secured
Leverage Ratio
5.75 to 1.00
5.25 to 1.00
4.75 to 1.00
4.25 to 1.00
4.25 to 1.00
3.90 to 1.00
46
Table of Contents
Item 3.
Quantitative
and Qualitative Disclosures about Market Risk
Item 4.
Controls
and Procedures
47
Table of Contents
48
Table of Contents
Item 1.
Legal
Proceedings
Item 1A.
Risk
Factors
Item 2.
Unregistered
Sales of Equity Securities and Use of Proceeds
Approximate Dollar
Total Number of
Value of Shares
Total Number
Average
Shares Purchased as
Remaining that may be
of Shares
Price Paid
Part of Publicly
Purchased Under
Period
Purchased
(1)
per Share
Announced
Program
(2)
the Program
-
-
-
$ 122,300,000
7
$ 26.51
-
$ 122,300,000
-
-
-
$ 122,300,000
(1)
Relates to shares employees have elected to have withheld to
cover their minimum withholding requirements for personal income
taxes related to the vesting of restricted stock units.
(2)
No shares were purchased during the three months ended
September 30, 2009 under our previously announced stock
purchase plan.
Item 3.
Defaults
Upon Senior Securities
Item 4.
Submission
of Matters to a Vote of Security Holders
Item 5.
Other
Information
49
Table of Contents
Item 6.
Exhibits
Exhibit
Description
Second Amended and Restated Certificate of Incorporation
(Incorporated by reference to Exhibit 3.1 to the Current
Report on
Form 8-K
filed on January 28, 2005).
Third Amended and Restated By-laws, effective as of
October 23, 2008 (Incorporated by reference to
Exhibit 3.1 to the Current Report on
Form 8-K
filed on October 29, 2008).
Certificate of Designations of 4.25% Convertible Perpetual
Preferred Stock (Incorporated by reference to Exhibit 3.2
to the Current Report on
Form 8-K
filed on January 28, 2005).
Agreement and General Release, dated August 3, 2009,
between the Company and John A. ODwyer (filed herewith).
Certification of Chief Executive Officer pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002 (filed
herewith).
Certification of Chief Financial Officer pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002 (filed
herewith).
Certification of Chief Executive Officer pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002 (filed
herewith).
Certification of Chief Financial Officer pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002 (filed
herewith).
XBRL Instance Document
XBRL Taxonomy Extension Schema Document
XBRL Taxonomy Extension Calculation Linkbase Document
XBRL Taxonomy Extension Definition Linkbase Document
XBRL Taxonomy Extension Label Linkbase Document
XBRL Taxonomy Extension Presentation Linkbase Document
50
Table of Contents
By:
Title: Chairman of the Board of Directors and
Chief Executive Officer
By:
Title: Senior Vice President and
Chief Financial Officer
51
1. | Last Day of Employment (Retirement Date) . The last day of employment with Celanese will be August 31, 2009 , or such earlier date mutually agreeable to both the Employer and Employee (the Retirement Date). |
2. | Consideration . In consideration for signing this Agreement and General Release and compliance with the promises made herein, Employer and Employee agree: |
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3. | No Consideration Absent Execution of this Agreement . Employee understands and agrees that he would not receive the monies and/or benefits specified in Paragraph 2 above, unless the Employee signs this Agreement and General Release on the signature page without having revoked this Agreement and General Release pursuant to Paragraph 15 below and the fulfillment of the promises contained herein. |
4. | General Release of Claims . Employee knowingly and voluntarily releases and forever discharges, to the full extent permitted by law, in all countries, including but not limited to the U.S., the Peoples Republic of China (PRC), U.K. and Germany, the Employer, its parent corporation, affiliates, subsidiaries, divisions, predecessors, successors and assigns and the current and former employees, officers, directors and agents thereof (collectively referred to throughout the remainder of this Agreement as Employer), of and from any and all claims, known and unknown, asserted and unasserted, Employee has or may have against Employer as of the date of execution of this Agreement and General Release, including, but not limited to, any alleged violation of: |
| Title VII of the Civil Rights Act of 1964, as amended; | ||
| The Civil Rights Act of 1991; | ||
| Sections 1981 through 1988 of Title 42 of the United States Code, as amended; | ||
| The Employee Retirement Income Security Act of 1974, as amended; | ||
| The Immigration Reform and Control Act, as amended; | ||
| The Americans with Disabilities Act of 1990, as amended; | ||
| The Age Discrimination in Employment Act of 1967, as amended; | ||
| The Workers Adjustment and Retraining Notification Act, as amended; | ||
| The Occupational Safety and Health Act, as amended; | ||
| The Sarbanes-Oxley Act of 2002; | ||
| The Texas Civil Rights Act, as amended; | ||
| The Texas Minimum Wage Law, as amended; | ||
| Equal Pay Law for Texas, as amended; | ||
| Any other federal, state or local civil or human rights law, or any other local, state or federal law, regulation or ordinance; or any law, regulation or ordinance of a foreign country, including but not limited to the PRC, Federal Republic of Germany and the United Kingdom. | ||
| Any public policy, contract, tort, or common law. | ||
| The employment, labor and benefits laws and regulations in all countries in addition to the U.S. including but not limited to the U.K. and Germany. | ||
| Any claim for costs, fees, or other expenses including attorneys fees incurred in these matters. |
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5. | Affirmations . Employee affirms that he has not filed, caused to be filed, or presently is a party to any claim, complaint, or action against Employer in any forum or form. Provided, however, that the foregoing does not affect any right to file an administrative charge with the Equal Employment Opportunity Commission (EEOC), subject to the restriction that if any such charge is filed, Employee agrees not to violate the confidentiality provisions of this Agreement and Employee further agrees and covenants that should he or any other person, organization, or other entity file, charge, claim, sue or cause or permit to be filed any charge with the EEOC, civil action, suit or legal proceeding against the Employer involving any matter occurring at any time in the past, Employee will not seek or accept any personal relief (including, but not limited to, monetary award, recovery, relief or settlement) in such charge, civil action, suit or proceeding. | |
Employee further affirms that he has reported all hours worked as of the date of this release and has been paid and/or has received all leave (paid or unpaid), compensation, wages, bonuses, commissions, and/or benefits to which he may be entitled and that no other leave (paid or unpaid), compensation, wages, bonuses, commissions and/or benefits are due to him, except as provided in this Agreement and General Release. Employee furthermore affirms that he has no known workplace injuries or occupational diseases and has been provided and/or has not been denied any leave requested under the Family and Medical Leave Act. | ||
6. | Confidentiality . Employee agrees and recognizes that any knowledge or information of any type whatsoever of a confidential nature relating to the business of the Employer or any of its subsidiaries, divisions or affiliates, including, without limitation, all types of trade secrets, client lists or information, employee lists or information, information regarding product development, marketing plans, management organization, operating policies or manuals, performance results, business plans, financial records, or other financial, commercial, business or technical information (collectively Confidential Information), must be protected as confidential, not copied, disclosed or used other than for the benefit of the Employer at any time unless and until such knowledge or information is in the public domain through no wrongful act by Employee. Employee further agrees not to divulge to anyone (other than the Employer or any persons employed or designated by the Employer), publish or make use of any such Confidential Information without the prior written consent of the Employer, except by an order of a court having competent jurisdiction or under subpoena from an appropriate government agency. | |
7. | Non-competition/Non-solicitation/Non-hire. Employee acknowledges and recognizes the highly competitive nature of the business of the Employer. Without the express written permission of Celanese, for a period of (52) weeks, following the Retirement Date (the Restricted Period), Employee acknowledges and agrees that he will not: (i) directly or indirectly solicit sales of like products similar to those produced or sold by Employer; or (ii) directly engage or become employed with any business that competes with the business of Celanese, including but not limited to: direct sales, supply chain, marketing, or manufacturing for a producer of products similar to those produced or licensed by Celanese. In addition, for (2) years, Employee will not directly or indirectly solicit, nor hire employees of Celanese for employment. However, nothing in this provision shall restrict Employee from owning, solely as an investment, publicly traded securities of any company which is engaged in the business of Celanese if Employee (i) is not a controlling person of, or a member of a group which controls; and (ii) does not, directly or indirectly, own 5% or more of any class of securities of any such company. | |
8. | Governing Law and Interpretation . This Agreement and General Release shall be governed and conformed in accordance with the laws of the State of Texas, without regard to its conflict of laws |
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provision. In the event the Employee or Employer breaches any provision of this Agreement and General Release, Employee and Employer affirm that either may institute an action to specifically enforce any term or terms of this Agreement and General Release. Should any provision of this Agreement and General Release be declared illegal or unenforceable by any court of competent jurisdiction and cannot be modified to be enforceable, excluding the general release language, such provision shall immediately become null and void, leaving the remainder of this Agreement and General Release in full force and effect. | ||
9. | Non-admission of Wrongdoing . The parties agree that neither this Agreement and General Release nor the furnishing of the consideration for this Release shall be deemed or construed at anytime for any purpose as an admission by Employer of any liability or unlawful conduct of any kind. | |
10. | Neutral Reference. If contacted by another organization, the Employer will only provide dates of employment and that the Employee voluntarily retired from the Company. | |
11. | Non - Disparagement. Employee agrees not to disparage, or make disparaging remarks or send any disparaging communications concerning, the Employer, its reputation, its business, and/or its directors, officers, managers. Likewise the Employers senior management agrees not to disparage, or make any disparaging remark or send any disparaging communication concerning Employee, his reputation and/or his business. | |
12. | Future Cooperation after Retirement Date. After retirement, Employee agrees to make reasonable efforts to assist Company including but not limited to: assisting with transition duties, assisting with issues that arise after retirement of employment and assisting with the defense or prosecution of any lawsuit or claim. This includes but is not limited to providing deposition testimony, attending hearings and testifying on behalf of the Company. The Company will reimburse Employee for reasonable time and expenses in connection with any future cooperation after the retirement date. Time and expenses can include loss of pay or using vacation time at a future employer. The Company shall reimburse the Employee within 30 days of remittance by Employee to the Company of such time and expenses incurred. | |
13. | Injunctive Relief. Employee agrees and acknowledges that the Employer will be irreparably harmed by any breach, or threatened breach by him of this Agreement and that monetary damages would be grossly inadequate. Accordingly, he agrees that in the event of a breach, or threatened breach by him of this Agreement the Employer shall be entitled to apply for immediate injunctive or other preliminary or equitable relief, as appropriate, in addition to all other remedies at law or equity. | |
14. | Review Period . Employee is hereby advised he has until September 14, 2009, or forty-five (45) calendar days, to review this Agreement and General Release and to consult with an attorney prior to execution of this Agreement and General Release. Employee agrees that any modifications, material or otherwise, made to this Agreement and General Release do not restart or affect in any manner the original forty-five (45) calendar day consideration period. | |
15. | Revocation Period and Effective Date . In the event that Employee elects to sign and return to the Company a copy of this Agreement, he has a period of seven (7) days (the Revocation Period) following the date of such execution to revoke this Agreement and General Release, after which time this agreement will become effective (the Effective Date) if not previously revoked. In order for the revocation to be effective, written notice must be received by the Company no later than close of |
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business on the seventh day after the Employee signs this Agreement and General Release at which time the Revocation Period shall expire. | ||
16. | Amendment . This Agreement and General Release may not be modified, altered or changed except upon express written consent of both parties wherein specific reference is made to this Agreement and General Release. | |
17. | Entire Agreement . This Agreement and General Release sets forth the entire agreement between the parties hereto, and fully supersedes any prior obligation of the Employer to the Employee. Employee acknowledges that he has not relied on any representations, promises, or agreements of any kind made to him in connection with his decision to accept this Agreement and General Release, except for those set forth in this Agreement and General Release. | |
18. | HAVING ELECTED TO EXECUTE THIS AGREEMENT AND GENERAL RELEASE, TO FULFILL THE PROMISES AND TO RECEIVE THE SUMS AND BENEFITS IN PARAGRAPH 2 ABOVE, EMPLOYEE FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS AGREEMENT AND GENERAL RELEASE INTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS HE HAS OR MIGHT HAVE AGAINST EMPLOYER. |
EMPLOYEE |
Celanese Corporation:
|
||||||
By:
|
/s/ John A. ODwyer | By: | /s/ Michael Summers | ||||
|
|||||||
|
John A. ODwyer | Michael Summers | |||||
|
|||||||
Date: August 5, 2009
|
Date: August 3, 2009 |
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