☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
For the quarterly period ended | |||||
September 30, 2023 | |||||
Or | |||||
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 98-0420726 | ||||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||
Common Stock, par value $0.0001 per share | CE | The New York Stock Exchange | ||||||
1.250% Senior Notes due 2025 | CE /25 | The New York Stock Exchange | ||||||
4.777% Senior Notes due 2026 | CE /26A | The New York Stock Exchange | ||||||
2.125% Senior Notes due 2027 | CE /27 | The New York Stock Exchange | ||||||
0.625% Senior Notes due 2028 | CE /28 | The New York Stock Exchange | ||||||
5.337% Senior Notes due 2029 | CE /29A | The New York Stock Exchange |
Page | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(In $ millions, except share and per share data) | |||||||||||||||||||||||
Net sales | 2,723 | 2,301 | 8,371 | 7,325 | |||||||||||||||||||
Cost of sales | (2,050) | (1,755) | (6,381) | (5,329) | |||||||||||||||||||
Gross profit | 673 | 546 | 1,990 | 1,996 | |||||||||||||||||||
Selling, general and administrative expenses | (244) | (184) | (803) | (555) | |||||||||||||||||||
Amortization of intangible assets | (41) | (10) | (124) | (32) | |||||||||||||||||||
Research and development expenses | (32) | (25) | (114) | (75) | |||||||||||||||||||
Other (charges) gains, net | (17) | (15) | (50) | (15) | |||||||||||||||||||
Foreign exchange gain (loss), net | — | (2) | 21 | (4) | |||||||||||||||||||
Gain (loss) on disposition of businesses and assets, net | 503 | (2) | 508 | 7 | |||||||||||||||||||
Operating profit (loss) | 842 | 308 | 1,428 | 1,322 | |||||||||||||||||||
Equity in net earnings (loss) of affiliates | 12 | 73 | 50 | 189 | |||||||||||||||||||
Non-operating pension and other postretirement employee benefit (expense) income | (1) | 25 | (2) | 74 | |||||||||||||||||||
Interest expense | (178) | (154) | (542) | (237) | |||||||||||||||||||
Refinancing expense | (7) | — | (7) | — | |||||||||||||||||||
Interest income | 12 | 34 | 27 | 36 | |||||||||||||||||||
Dividend income - equity investments | 30 | 30 | 95 | 103 | |||||||||||||||||||
Other income (expense), net | 4 | 5 | 2 | 4 | |||||||||||||||||||
Earnings (loss) from continuing operations before tax | 714 | 321 | 1,051 | 1,491 | |||||||||||||||||||
Income tax (provision) benefit | 236 | (127) | 215 | (351) | |||||||||||||||||||
Earnings (loss) from continuing operations | 950 | 194 | 1,266 | 1,140 | |||||||||||||||||||
Earnings (loss) from operation of discontinued operations | (1) | — | (4) | (8) | |||||||||||||||||||
Income tax (provision) benefit from discontinued operations | — | (1) | 1 | 1 | |||||||||||||||||||
Earnings (loss) from discontinued operations | (1) | (1) | (3) | (7) | |||||||||||||||||||
Net earnings (loss) | 949 | 193 | 1,263 | 1,133 | |||||||||||||||||||
Net (earnings) loss attributable to noncontrolling interests | 2 | (2) | (1) | (6) | |||||||||||||||||||
Net earnings (loss) attributable to Celanese Corporation | 951 | 191 | 1,262 | 1,127 | |||||||||||||||||||
Amounts attributable to Celanese Corporation | |||||||||||||||||||||||
Earnings (loss) from continuing operations | 952 | 192 | 1,265 | 1,134 | |||||||||||||||||||
Earnings (loss) from discontinued operations | (1) | (1) | (3) | (7) | |||||||||||||||||||
Net earnings (loss) | 951 | 191 | 1,262 | 1,127 | |||||||||||||||||||
Earnings (loss) per common share - basic | |||||||||||||||||||||||
Continuing operations | 8.74 | 1.77 | 11.63 | 10.47 | |||||||||||||||||||
Discontinued operations | (0.01) | (0.01) | (0.03) | (0.07) | |||||||||||||||||||
Net earnings (loss) - basic | 8.73 | 1.76 | 11.60 | 10.40 | |||||||||||||||||||
Earnings (loss) per common share - diluted | |||||||||||||||||||||||
Continuing operations | 8.70 | 1.76 | 11.57 | 10.39 | |||||||||||||||||||
Discontinued operations | (0.01) | (0.01) | (0.03) | (0.07) | |||||||||||||||||||
Net earnings (loss) - diluted | 8.69 | 1.75 | 11.54 | 10.32 | |||||||||||||||||||
Weighted average shares - basic | 108,918,986 | 108,428,982 | 108,814,288 | 108,336,574 | |||||||||||||||||||
Weighted average shares - diluted | 109,439,486 | 109,065,970 | 109,338,040 | 109,158,832 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(In $ millions) | |||||||||||||||||||||||
Net earnings (loss) | 949 | 193 | 1,263 | 1,133 | |||||||||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||||||||
Foreign currency translation gain (loss) | 7 | (49) | (181) | (201) | |||||||||||||||||||
Gain (loss) on derivative hedges | (17) | (11) | (13) | 30 | |||||||||||||||||||
Pension and postretirement benefits | (1) | — | (1) | 2 | |||||||||||||||||||
Total other comprehensive income (loss), net of tax | (11) | (60) | (195) | (169) | |||||||||||||||||||
Total comprehensive income (loss), net of tax | 938 | 133 | 1,068 | 964 | |||||||||||||||||||
Comprehensive (income) loss attributable to noncontrolling interests | 2 | (2) | (1) | (6) | |||||||||||||||||||
Comprehensive income (loss) attributable to Celanese Corporation | 940 | 131 | 1,067 | 958 |
As of September 30, 2023 | As of December 31, 2022 | ||||||||||
(In $ millions, except share data) | |||||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | 1,357 | 1,508 | |||||||||
Trade receivables - third party and affiliates | 1,339 | 1,379 | |||||||||
Non-trade receivables, net | 570 | 675 | |||||||||
Inventories | 2,337 | 2,808 | |||||||||
Other assets | 284 | 241 | |||||||||
Total current assets | 5,887 | 6,611 | |||||||||
Investments in affiliates | 1,245 | 1,062 | |||||||||
Property, plant and equipment (net of accumulated depreciation - 2023: $3,881; 2022: $3,687) | 5,467 | 5,584 | |||||||||
Operating lease right-of-use assets | 395 | 413 | |||||||||
Deferred income taxes | 1,074 | 808 | |||||||||
Other assets | 535 | 547 | |||||||||
Goodwill | 6,991 | 7,142 | |||||||||
Intangible assets, net | 3,944 | 4,105 | |||||||||
Total assets | 25,538 | 26,272 | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Current Liabilities | |||||||||||
Short-term borrowings and current installments of long-term debt - third party and affiliates | 1,408 | 1,306 | |||||||||
Trade payables - third party and affiliates | 1,263 | 1,518 | |||||||||
Other liabilities | 927 | 1,201 | |||||||||
Income taxes payable | 18 | 43 | |||||||||
Total current liabilities | 3,616 | 4,068 | |||||||||
Long-term debt, net of unamortized deferred financing costs | 12,291 | 13,373 | |||||||||
Deferred income taxes | 1,223 | 1,242 | |||||||||
Uncertain tax positions | 276 | 322 | |||||||||
Benefit obligations | 396 | 411 | |||||||||
Operating lease liabilities | 334 | 364 | |||||||||
Other liabilities | 453 | 387 | |||||||||
Commitments and Contingencies | |||||||||||
Shareholders' Equity | |||||||||||
Preferred stock, $0.01 par value, 100,000,000 shares authorized (2023 and 2022: 0 issued and outstanding) | — | — | |||||||||
Common stock, $0.0001 par value, 400,000,000 shares authorized (2023: 170,465,439 issued and 108,854,038 outstanding; 2022: 170,135,425 issued and 108,473,932 outstanding) | — | — | |||||||||
Treasury stock, at cost (2023: 61,611,401 shares; 2022: 61,661,493 shares) | (5,490) | (5,491) | |||||||||
Additional paid-in capital | 386 | 372 | |||||||||
Retained earnings | 12,308 | 11,274 | |||||||||
Accumulated other comprehensive income (loss), net | (713) | (518) | |||||||||
Total Celanese Corporation shareholders' equity | 6,491 | 5,637 | |||||||||
Noncontrolling interests | 458 | 468 | |||||||||
Total equity | 6,949 | 6,105 | |||||||||
Total liabilities and equity | 25,538 | 26,272 |
Three Months Ended September 30, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||
(In $ millions, except share data) | |||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||
Balance as of the beginning of the period | 108,847,435 | — | 108,346,035 | — | |||||||||||||||||||
Stock awards | 6,603 | — | 40,704 | — | |||||||||||||||||||
Balance as of the end of the period | 108,854,038 | — | 108,386,739 | — | |||||||||||||||||||
Treasury Stock | |||||||||||||||||||||||
Balance as of the beginning of the period | 61,611,401 | (5,490) | 61,704,046 | (5,492) | |||||||||||||||||||
Issuance of treasury stock under stock plans | — | — | — | — | |||||||||||||||||||
Balance as of the end of the period | 61,611,401 | (5,490) | 61,704,046 | (5,492) | |||||||||||||||||||
Additional Paid-In Capital | |||||||||||||||||||||||
Balance as of the beginning of the period | 383 | 344 | |||||||||||||||||||||
Stock-based compensation, net of tax | 3 | 12 | |||||||||||||||||||||
Balance as of the end of the period | 386 | 356 | |||||||||||||||||||||
Retained Earnings | |||||||||||||||||||||||
Balance as of the beginning of the period | 11,433 | 10,466 | |||||||||||||||||||||
Net earnings (loss) attributable to Celanese Corporation | 951 | 191 | |||||||||||||||||||||
Common stock dividends | (76) | (73) | |||||||||||||||||||||
Balance as of the end of the period | 12,308 | 10,584 | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net | |||||||||||||||||||||||
Balance as of the beginning of the period | (702) | (438) | |||||||||||||||||||||
Other comprehensive income (loss), net of tax | (11) | (60) | |||||||||||||||||||||
Balance as of the end of the period | (713) | (498) | |||||||||||||||||||||
Total Celanese Corporation shareholders' equity | 6,491 | 4,950 | |||||||||||||||||||||
Noncontrolling Interests | |||||||||||||||||||||||
Balance as of the beginning of the period | 464 | 345 | |||||||||||||||||||||
Net earnings (loss) attributable to noncontrolling interests | (2) | 2 | |||||||||||||||||||||
Distributions/dividends to noncontrolling interests | (4) | (3) | |||||||||||||||||||||
Balance as of the end of the period | 458 | 344 | |||||||||||||||||||||
Total equity | 6,949 | 5,294 |
Nine Months Ended September 30, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||
(In $ millions, except share data) | |||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||
Balance as of the beginning of the period | 108,473,932 | — | 108,023,735 | — | |||||||||||||||||||
Stock awards | 380,106 | — | 363,004 | — | |||||||||||||||||||
Balance as of the end of the period | 108,854,038 | — | 108,386,739 | — | |||||||||||||||||||
Treasury Stock | |||||||||||||||||||||||
Balance as of the beginning of the period | 61,661,493 | (5,491) | 61,736,289 | (5,492) | |||||||||||||||||||
Issuance of treasury stock under stock plans | (50,092) | 1 | (32,243) | — | |||||||||||||||||||
Balance as of the end of the period | 61,611,401 | (5,490) | 61,704,046 | (5,492) | |||||||||||||||||||
Additional Paid-In Capital | |||||||||||||||||||||||
Balance as of the beginning of the period | 372 | 333 | |||||||||||||||||||||
Stock-based compensation, net of tax | 14 | 23 | |||||||||||||||||||||
Balance as of the end of the period | 386 | 356 | |||||||||||||||||||||
Retained Earnings | |||||||||||||||||||||||
Balance as of the beginning of the period | 11,274 | 9,677 | |||||||||||||||||||||
Net earnings (loss) attributable to Celanese Corporation | 1,262 | 1,127 | |||||||||||||||||||||
Common stock dividends | (228) | (220) | |||||||||||||||||||||
Balance as of the end of the period | 12,308 | 10,584 | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net | |||||||||||||||||||||||
Balance as of the beginning of the period | (518) | (329) | |||||||||||||||||||||
Other comprehensive income (loss), net of tax | (195) | (169) | |||||||||||||||||||||
Balance as of the end of the period | (713) | (498) | |||||||||||||||||||||
Total Celanese Corporation shareholders' equity | 6,491 | 4,950 | |||||||||||||||||||||
Noncontrolling Interests | |||||||||||||||||||||||
Balance as of the beginning of the period | 468 | 348 | |||||||||||||||||||||
Net earnings (loss) attributable to noncontrolling interests | 1 | 6 | |||||||||||||||||||||
Distributions/dividends to noncontrolling interests | (11) | (10) | |||||||||||||||||||||
Balance as of the end of the period | 458 | 344 | |||||||||||||||||||||
Total equity | 6,949 | 5,294 |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
(In $ millions) | |||||||||||
Operating Activities | |||||||||||
Net earnings (loss) | 1,263 | 1,133 | |||||||||
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities | |||||||||||
Asset impairments | 9 | 12 | |||||||||
Depreciation, amortization and accretion | 544 | 318 | |||||||||
Pension and postretirement net periodic benefit cost | 10 | (63) | |||||||||
Pension and postretirement contributions | (37) | (34) | |||||||||
Deferred income taxes, net | (282) | 14 | |||||||||
(Gain) loss on disposition of businesses and assets, net | (498) | (6) | |||||||||
Stock-based compensation | 36 | 47 | |||||||||
Undistributed earnings in unconsolidated affiliates | 20 | (56) | |||||||||
Other, net | 2 | 8 | |||||||||
Operating cash provided by (used in) discontinued operations | (5) | (25) | |||||||||
Changes in operating assets and liabilities | |||||||||||
Trade receivables - third party and affiliates, net | (16) | (61) | |||||||||
Inventories | 373 | (321) | |||||||||
Other assets | 219 | 26 | |||||||||
Trade payables - third party and affiliates | (171) | 97 | |||||||||
Other liabilities | (398) | 189 | |||||||||
Net cash provided by (used in) operating activities | 1,069 | 1,278 | |||||||||
Investing Activities | |||||||||||
Capital expenditures on property, plant and equipment | (440) | (400) | |||||||||
Acquisitions, net of cash acquired | 52 | (14) | |||||||||
Proceeds from sale of businesses and assets, net | 480 | 16 | |||||||||
Other, net | (58) | (30) | |||||||||
Net cash provided by (used in) investing activities | 34 | (428) | |||||||||
Financing Activities | |||||||||||
Net change in short-term borrowings with maturities of 3 months or less | (278) | (249) | |||||||||
Proceeds from short-term borrowings | 452 | — | |||||||||
Repayments of short-term borrowings | (603) | — | |||||||||
Proceeds from long-term debt | 3,001 | 9,019 | |||||||||
Repayments of long-term debt | (3,497) | (21) | |||||||||
Purchases of treasury stock, including related fees | — | (17) | |||||||||
Common stock dividends | (228) | (220) | |||||||||
Distributions to noncontrolling interests | (11) | (10) | |||||||||
Issuance cost of bridge facility | — | (63) | |||||||||
Other, net | (52) | (93) | |||||||||
Net cash provided by (used in) financing activities | (1,216) | 8,346 | |||||||||
Exchange rate effects on cash and cash equivalents | (38) | (61) | |||||||||
Net increase (decrease) in cash and cash equivalents | (151) | 9,135 | |||||||||
Cash and cash equivalents as of beginning of period | 1,508 | 536 | |||||||||
Cash and cash equivalents as of end of period | 1,357 | 9,671 |
Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | ||||||||||
(In $ millions) | |||||||||||
Proforma Net sales | 3,141 | 9,965 | |||||||||
Proforma Earnings (loss) from continuing operations before tax | 163 | 760 |
As of September 30, 2023 | As of December 31, 2022 | ||||||||||
(In $ millions) | |||||||||||
Finished goods | 1,573 | 1,820 | |||||||||
Work-in-process | 169 | 202 | |||||||||
Raw materials and supplies | 595 | 786 | |||||||||
Total | 2,337 | 2,808 |
Engineered Materials | Acetyl Chain | Total | |||||||||||||||
(In $ millions) | |||||||||||||||||
As of December 31, 2022 | 6,775 | 367 | 7,142 | ||||||||||||||
(24) | — | (24) | |||||||||||||||
Disposition(1) | (80) | — | (80) | ||||||||||||||
Exchange rate changes | (45) | (2) | (47) | ||||||||||||||
As of September 30, 2023(2) | 6,626 | 365 | 6,991 |
Licenses | Customer- Related Intangible Assets | Developed Technology | Covenants Not to Compete and Other | Total | |||||||||||||||||||||||||
(In $ millions) | |||||||||||||||||||||||||||||
Gross Asset Value | |||||||||||||||||||||||||||||
As of December 31, 2022 | 42 | 2,455 | 601 | 55 | 3,153 | ||||||||||||||||||||||||
Disposition(1) | — | (58) | — | — | (58) | ||||||||||||||||||||||||
Exchange rate changes | (2) | (23) | (10) | — | (35) | ||||||||||||||||||||||||
As of September 30, 2023 | 40 | 2,374 | 591 | 55 | 3,060 | ||||||||||||||||||||||||
Accumulated Amortization | |||||||||||||||||||||||||||||
As of December 31, 2022 | (39) | (567) | (50) | (40) | (696) | ||||||||||||||||||||||||
Amortization | — | (93) | (30) | (1) | (124) | ||||||||||||||||||||||||
Disposition(1) | — | 58 | — | — | 58 | ||||||||||||||||||||||||
Exchange rate changes | 2 | 10 | — | — | 12 | ||||||||||||||||||||||||
As of September 30, 2023 | (37) | (592) | (80) | (41) | (750) | ||||||||||||||||||||||||
Net book value | 3 | 1,782 | 511 | 14 | 2,310 |
Trademarks and Trade Names | |||||
(In $ millions) | |||||
As of December 31, 2022 | 1,648 | ||||
Disposition(1) | (14) | ||||
Exchange rate changes | — | ||||
As of September 30, 2023 | 1,634 | ||||
(In $ millions) | |||||
2024 | 161 | ||||
2025 | 161 | ||||
2026 | 160 | ||||
2027 | 160 | ||||
2028 | 160 |
As of September 30, 2023 | As of December 31, 2022 | ||||||||||
(In $ millions) | |||||||||||
25 | 25 | ||||||||||
Customer rebates | 79 | 101 | |||||||||
46 | 63 | ||||||||||
137 | 265 | ||||||||||
25 | 21 | ||||||||||
Operating leases | 88 | 83 | |||||||||
21 | 6 | ||||||||||
Salaries and benefits | 149 | 151 | |||||||||
Sales and use tax/foreign withholding tax payable | 104 | 108 | |||||||||
Investment in affiliates | 91 | 79 | |||||||||
Other(1) | 162 | 299 | |||||||||
Total | 927 | 1,201 |
As of September 30, 2023 | As of December 31, 2022 | ||||||||||
(In $ millions) | |||||||||||
Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates | |||||||||||
Current installments of long-term debt | 1,061 | 506 | |||||||||
Short-term borrowings, including amounts due to affiliates(1) | 142 | 500 | |||||||||
Revolving credit facilities(2) | 205 | 300 | |||||||||
Total | 1,408 | 1,306 |
As of September 30, 2023 | As of December 31, 2022 | ||||||||||
(In $ millions) | |||||||||||
Long-Term Debt | |||||||||||
Senior unsecured notes due 2023, interest rate of 1.125% | — | 480 | |||||||||
Senior unsecured notes due 2024, interest rate of 3.500% | 473 | 499 | |||||||||
Senior unsecured notes due 2024, interest rate of 5.900% | 527 | 2,000 | |||||||||
Senior unsecured notes due 2025, interest rate of 1.250% | 318 | 320 | |||||||||
Senior unsecured notes due 2025, interest rate of 6.050% | 1,000 | 1,750 | |||||||||
Senior unsecured term loan due 2025(1) | — | 750 | |||||||||
Senior unsecured notes due 2026, interest rate of 1.400% | 400 | 400 | |||||||||
Senior unsecured notes due 2026, interest rate of 4.777% | 1,060 | 1,067 | |||||||||
Senior unsecured notes due 2027, interest rate of 2.125% | 528 | 531 | |||||||||
Senior unsecured notes due 2027, interest rate of 6.165% | 2,000 | 2,000 | |||||||||
Senior unsecured term loan due 2027(1) | 1,000 | 1,000 | |||||||||
Senior unsecured notes due 2028, interest rate of 0.625% | 529 | 533 | |||||||||
Senior unsecured notes due 2028, interest rate of 6.350% | 1,000 | — | |||||||||
Senior unsecured notes due 2029, interest rate of 5.337% | 529 | 533 | |||||||||
Senior unsecured notes due 2029, interest rate of 6.330% | 750 | 750 | |||||||||
Senior unsecured notes due 2030, interest rate of 6.550% | 999 | — | |||||||||
Senior unsecured notes due 2032, interest rate of 6.379% | 1,000 | 1,000 | |||||||||
Senior unsecured notes due 2033, interest rate of 6.700% | 1,000 | — | |||||||||
Pollution control and industrial revenue bonds due at various dates through 2030(2) | 163 | 164 | |||||||||
Bank loans due at various dates through 2030(3) | 5 | 4 | |||||||||
Obligations under finance leases due at various dates through 2054 | 150 | 172 | |||||||||
Subtotal | 13,431 | 13,953 | |||||||||
Unamortized deferred financing costs(4) | (79) | (74) | |||||||||
Current installments of long-term debt | (1,061) | (506) | |||||||||
Total | 12,291 | 13,373 |
As of September 30, 2023 | |||||
(In $ millions) | |||||
U.S. Revolving Credit Facility | |||||
Borrowings outstanding | — | ||||
Available for borrowing | 1,750 | ||||
China Revolving Credit Facility | |||||
Borrowings outstanding | 205 | ||||
Available for borrowing | 35 |
Maturity Date | Aggregate Principal Amount Issued | Discount to Par | Interest Rate | |||||||||||||||||
(In $ millions) | ||||||||||||||||||||
November 15, 2028 | 1,000 | 99.986% | 6.350% | |||||||||||||||||
November 15, 2030 | 999 | 99.950% | 6.550% | |||||||||||||||||
November 15, 2033 | 1,000 | 99.992% | 6.700% |
Maturity Date | Aggregate Principal Amount Tendered | Purchase price per $1,000 principal amount | Total Tender Offer Consideration | Accrued and Unpaid Interest | ||||||||||||||||||||||
(In $ millions) | (In $ millions) | |||||||||||||||||||||||||
June 30, 2024 | 1,473 | $ | 999.92 | 1,473 | 12 | |||||||||||||||||||||
March 15, 2025 | 750 | $ | 1,002.85 | 752 | 20 | |||||||||||||||||||||
April 30, 2024 | 27 | $ | 983.95 | 27 | — |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Post-retirement Benefits | Pension Benefits | Post-retirement Benefits | Pension Benefits | Post-retirement Benefits | Pension Benefits | Post-retirement Benefits | ||||||||||||||||||||||||||||||||||||||||
(In $ millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Service cost | 2 | — | 3 | 1 | 8 | — | 10 | 1 | |||||||||||||||||||||||||||||||||||||||
Interest cost | 32 | 1 | 17 | — | 98 | 2 | 50 | 1 | |||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (32) | — | (42) | — | (98) | — | (125) | — | |||||||||||||||||||||||||||||||||||||||
Total | 2 | 1 | (22) | 1 | 8 | 2 | (65) | 2 |
As of September 30, 2023 | Total Expected 2023 | ||||||||||
(In $ millions) | |||||||||||
Cash contributions to defined benefit pension plans | 20 | 27 | |||||||||
Benefit payments to nonqualified pension plans | 15 | 18 | |||||||||
Benefit payments to other postretirement benefit plans | 2 | 4 | |||||||||
As of September 30, 2023 | As of December 31, 2022 | ||||||||||||||||||||||
Pension Benefits | Post-retirement Benefits | Pension Benefits | Post-retirement Benefits | ||||||||||||||||||||
(In $ millions) | |||||||||||||||||||||||
Noncurrent Other assets | 167 | — | 160 | — | |||||||||||||||||||
Current Other liabilities | (21) | (3) | (21) | (3) | |||||||||||||||||||
Benefit obligations | (357) | (35) | (372) | (35) | |||||||||||||||||||
Net amount recognized | (211) | (38) | (233) | (38) |
Total From February 2008 Through September 30, 2023 | |||||
Shares repurchased | 69,324,429 | ||||
Average purchase price per share | $ | 83.71 | |||
Shares repurchased (in $ millions) | $ | 5,803 | |||
Aggregate Board of Directors repurchase authorizations during the period (in $ millions) | $ | 6,866 |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
Gross Amount | Income Tax (Provision) Benefit | Net Amount | Gross Amount | Income Tax (Provision) Benefit | Net Amount | ||||||||||||||||||||||||||||||
(In $ millions) | |||||||||||||||||||||||||||||||||||
Foreign currency translation gain (loss) | 34 | (27) | 7 | 3 | (52) | (49) | |||||||||||||||||||||||||||||
Gain (loss) on derivative hedges | (21) | 4 | (17) | (15) | 4 | (11) | |||||||||||||||||||||||||||||
Pension and postretirement benefits gain (loss) | (1) | — | (1) | — | — | — | |||||||||||||||||||||||||||||
Total | 12 | (23) | (11) | (12) | (48) | (60) |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
Gross Amount | Income Tax (Provision) Benefit | Net Amount | Gross Amount | Income Tax (Provision) Benefit | Net Amount | ||||||||||||||||||||||||||||||
(In $ millions) | |||||||||||||||||||||||||||||||||||
Foreign currency translation gain (loss) | (184) | 3 | (181) | (119) | (82) | (201) | |||||||||||||||||||||||||||||
Gain (loss) on derivative hedges | (18) | 5 | (13) | 37 | (7) | 30 | |||||||||||||||||||||||||||||
Pension and postretirement benefits gain (loss) | (2) | 1 | (1) | 2 | — | 2 | |||||||||||||||||||||||||||||
Total | (204) | 9 | (195) | (80) | (89) | (169) |
Foreign Currency Translation Gain (Loss) | Gain (Loss) on Derivative Hedges | Pension and Postretirement Benefits Gain (Loss) | Accumulated Other Comprehensive Income (Loss), Net | ||||||||||||||||||||
(In $ millions) | |||||||||||||||||||||||
As of December 31, 2022 | (488) | (22) | (8) | (518) | |||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (184) | 20 | (2) | (166) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (38) | — | (38) | |||||||||||||||||||
Income tax (provision) benefit | 3 | 5 | 1 | 9 | |||||||||||||||||||
As of September 30, 2023 | (669) | (35) | (9) | (713) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(In percentages) | |||||||||||||||||||||||
Effective income tax rate | (33) | 40 | (20) | 24 |
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | Gain (Loss) Recognized in Earnings (Loss) | ||||||||||||||||||||||||||||
Three Months Ended September 30, | Statement of Operations Classification | ||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||
(In $ millions) | |||||||||||||||||||||||||||||
Designated as Cash Flow Hedges | |||||||||||||||||||||||||||||
Commodity swaps | 5 | (9) | 1 | 11 | |||||||||||||||||||||||||
Interest rate swaps | — | — | (2) | (1) | |||||||||||||||||||||||||
Foreign currency forwards | — | 2 | 4 | — | |||||||||||||||||||||||||
Total | 5 | (7) | 3 | 10 | |||||||||||||||||||||||||
Designated as Fair Value Hedges | |||||||||||||||||||||||||||||
Cross-currency swaps(1) | 18 | — | 40 | — | |||||||||||||||||||||||||
Designated as Net Investment Hedges | |||||||||||||||||||||||||||||
Foreign currency denominated debt | 61 | 148 | — | — | N/A | ||||||||||||||||||||||||
Cross-currency swaps | 77 | 90 | — | — | N/A | ||||||||||||||||||||||||
Total | 138 | 238 | — | — | |||||||||||||||||||||||||
Not Designated as Hedges | |||||||||||||||||||||||||||||
Foreign currency forwards and swaps | — | — | (23) | (8) | |||||||||||||||||||||||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | Gain (Loss) Recognized in Earnings (Loss) | ||||||||||||||||||||||||||||
Nine Months Ended September 30, | Statement of Operations Classification | ||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||
(In $ millions) | |||||||||||||||||||||||||||||
Designated as Cash Flow Hedges | |||||||||||||||||||||||||||||
Commodity swaps | (2) | 50 | 2 | 22 | |||||||||||||||||||||||||
Interest rate swaps | — | — | (6) | (5) | |||||||||||||||||||||||||
Foreign currency forwards | 4 | 2 | 2 | — | |||||||||||||||||||||||||
Total | 2 | 52 | (2) | 17 | |||||||||||||||||||||||||
Designated as Fair Value Hedges | |||||||||||||||||||||||||||||
Cross-currency swaps | 18 | — | 40 | — | |||||||||||||||||||||||||
Designated as Net Investment Hedges(1) | |||||||||||||||||||||||||||||
Foreign currency denominated debt | — | 269 | — | — | N/A | ||||||||||||||||||||||||
Cross-currency swaps | (16) | 117 | — | — | N/A | ||||||||||||||||||||||||
Total | (16) | 386 | — | — | |||||||||||||||||||||||||
Not Designated as Hedges | |||||||||||||||||||||||||||||
Foreign currency forwards and swaps | — | — | (22) | (12) | |||||||||||||||||||||||||
As of September 30, 2023 | As of December 31, 2022 | ||||||||||
(In $ millions) | |||||||||||
Gross amount recognized | 187 | 169 | |||||||||
Gross amount offset in the consolidated balance sheets | — | — | |||||||||
Net amount presented in the consolidated balance sheets | 187 | 169 | |||||||||
Gross amount not offset in the consolidated balance sheets | 44 | 16 | |||||||||
Net amount | 143 | 153 |
As of September 30, 2023 | As of December 31, 2022 | ||||||||||
(In $ millions) | |||||||||||
Gross amount recognized | 226 | 189 | |||||||||
Gross amount offset in the consolidated balance sheets | — | — | |||||||||
Net amount presented in the consolidated balance sheets | 226 | 189 | |||||||||
Gross amount not offset in the consolidated balance sheets | 44 | 16 | |||||||||
Net amount | 182 | 173 |
Fair Value Measurement | ||||||||||||||||||||
Significant Other Observable Inputs (Level 2) | ||||||||||||||||||||
Notional Amount | Current | Noncurrent | Current | Noncurrent | ||||||||||||||||
(In millions) | (In $ millions) | |||||||||||||||||||
As of September 30, 2023 | ||||||||||||||||||||
Derivatives Designated as Cash Flow Hedges | ||||||||||||||||||||
Commodity swaps | $ | 63 | 6 | 36 | — | — | ||||||||||||||
Foreign currency forwards and swaps | $ | 27 | 2 | — | — | — | ||||||||||||||
Designated as Fair Value Hedges(1) | ||||||||||||||||||||
Cross-currency swaps | $ | 1,500 | 33 | 10 | 6 | 18 | ||||||||||||||
Derivatives Designated as Net Investment Hedges | ||||||||||||||||||||
Cross-currency swaps | € | 5,367 | 91 | — | 29 | 152 | ||||||||||||||
Derivatives Not Designated as Hedges | ||||||||||||||||||||
Foreign currency forwards and swaps | $ | 2,098 | 9 | — | 11 | 10 | ||||||||||||||
Total | 141 | 46 | 46 | 180 | ||||||||||||||||
As of December 31, 2022 | ||||||||||||||||||||
Derivatives Designated as Cash Flow Hedges | ||||||||||||||||||||
Commodity swaps | $ | 82 | 9 | 39 | 2 | — | ||||||||||||||
Foreign currency forwards and swaps | $ | 49 | — | — | — | — | ||||||||||||||
Derivatives Designated as Net Investment Hedges | ||||||||||||||||||||
Cross-currency swaps | € | 5,639 | 99 | 13 | 58 | 126 | ||||||||||||||
Derivatives Not Designated as Hedges | ||||||||||||||||||||
Foreign currency forwards and swaps | $ | 1,265 | 9 | — | 3 | — | ||||||||||||||
Total | 117 | 52 | 63 | 126 |
Fair Value Measurement | |||||||||||||||||||||||
Carrying Amount | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | Total | ||||||||||||||||||||
(In $ millions) | |||||||||||||||||||||||
As of September 30, 2023 | |||||||||||||||||||||||
Equity investments without readily determinable fair values | 170 | — | — | — | |||||||||||||||||||
Insurance contracts in nonqualified trusts | 21 | 21 | — | 21 | |||||||||||||||||||
Long-term debt, including current installments of long-term debt | 13,431 | 12,894 | 150 | 13,044 | |||||||||||||||||||
As of December 31, 2022 | |||||||||||||||||||||||
Equity investments without readily determinable fair values | 170 | — | — | — | |||||||||||||||||||
Insurance contracts in nonqualified trusts | 22 | 23 | — | 23 | |||||||||||||||||||
Long-term debt, including current installments of long-term debt | 13,953 | 13,247 | 172 | 13,419 |
Engineered Materials | Acetyl Chain | Other Activities | Eliminations | Consolidated | ||||||||||||||||||||||||||||
(In $ millions) | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||
Net sales | 1,528 | 1,220 | — | (25) | (1) | 2,723 | ||||||||||||||||||||||||||
(15) | — | (2) | — | (17) | ||||||||||||||||||||||||||||
Operating profit (loss) | 691 | (2) | 272 | (121) | — | 842 | ||||||||||||||||||||||||||
Equity in net earnings (loss) of affiliates | 8 | 1 | 3 | — | 12 | |||||||||||||||||||||||||||
Depreciation and amortization | 111 | 55 | 7 | — | 173 | |||||||||||||||||||||||||||
Capital expenditures | 51 | 44 | 24 | — | 119 | (3) | ||||||||||||||||||||||||||
Three Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||
Net sales | 929 | 1,397 | — | (25) | (1) | 2,301 | ||||||||||||||||||||||||||
(14) | — | (1) | — | (15) | ||||||||||||||||||||||||||||
Operating profit (loss) | 114 | 312 | (118) | — | 308 | |||||||||||||||||||||||||||
Equity in net earnings (loss) of affiliates | 69 | 1 | 3 | — | 73 | |||||||||||||||||||||||||||
Depreciation and amortization | 43 | 53 | 4 | — | 100 | |||||||||||||||||||||||||||
Capital expenditures | 34 | 74 | 15 | — | 123 | (3) |
Engineered Materials | Acetyl Chain | Other Activities | Eliminations | Consolidated | ||||||||||||||||||||||||||||
(In $ millions) | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||
Net sales | 4,743 | 3,703 | — | (75) | (1) | 8,371 | ||||||||||||||||||||||||||
(44) | (1) | (5) | — | (50) | ||||||||||||||||||||||||||||
Operating profit (loss) | 961 | (2) | 845 | (378) | — | 1,428 | ||||||||||||||||||||||||||
Equity in net earnings (loss) of affiliates | 37 | 4 | 9 | — | 50 | |||||||||||||||||||||||||||
Depreciation and amortization | 335 | 163 | 19 | — | 517 | |||||||||||||||||||||||||||
Capital expenditures | 154 | 162 | 63 | — | 379 | (3) | ||||||||||||||||||||||||||
As of September 30, 2023 | ||||||||||||||||||||||||||||||||
Goodwill and intangible assets, net | 10,518 | 417 | — | — | 10,935 | |||||||||||||||||||||||||||
Total assets | 17,478 | 5,528 | 2,532 | — | 25,538 | |||||||||||||||||||||||||||
Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||
Net sales | 2,787 | 4,608 | — | (70) | (1) | 7,325 | ||||||||||||||||||||||||||
(14) | — | (1) | — | (15) | ||||||||||||||||||||||||||||
Operating profit (loss) | 404 | 1,243 | (325) | — | 1,322 | |||||||||||||||||||||||||||
Equity in net earnings (loss) of affiliates | 171 | 8 | 10 | — | 189 | |||||||||||||||||||||||||||
Depreciation and amortization | 134 | 161 | 14 | — | 309 | |||||||||||||||||||||||||||
Capital expenditures | 99 | 231 | 39 | — | 369 | (3) | ||||||||||||||||||||||||||
As of December 31, 2022 | ||||||||||||||||||||||||||||||||
Goodwill and intangible assets, net | 10,826 | 421 | — | — | 11,247 | |||||||||||||||||||||||||||
Total assets | 20,611 | 5,471 | 190 | — | 26,272 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(In $ millions) | |||||||||||||||||||||||
Engineered Materials | |||||||||||||||||||||||
North America | 449 | 292 | 1,399 | 865 | |||||||||||||||||||
Europe and Africa | 462 | 355 | 1,541 | 1,112 | |||||||||||||||||||
Asia-Pacific | 580 | 256 | 1,682 | 733 | |||||||||||||||||||
South America | 37 | 26 | 121 | 77 | |||||||||||||||||||
Total | 1,528 | 929 | 4,743 | 2,787 | |||||||||||||||||||
Acetyl Chain | |||||||||||||||||||||||
North America | 366 | 461 | 1,092 | 1,337 | |||||||||||||||||||
Europe and Africa | 395 | 461 | 1,292 | 1,598 | |||||||||||||||||||
Asia-Pacific | 406 | 401 | 1,152 | 1,472 | |||||||||||||||||||
South America | 28 | 49 | 92 | 131 | |||||||||||||||||||
Total(1) | 1,195 | 1,372 | 3,628 | 4,538 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(In $ millions, except share data) | |||||||||||||||||||||||
Amounts attributable to Celanese Corporation | |||||||||||||||||||||||
Earnings (loss) from continuing operations | 952 | 192 | 1,265 | 1,134 | |||||||||||||||||||
Earnings (loss) from discontinued operations | (1) | (1) | (3) | (7) | |||||||||||||||||||
Net earnings (loss) | 951 | 191 | 1,262 | 1,127 | |||||||||||||||||||
Weighted average shares - basic | 108,918,986 | 108,428,982 | 108,814,288 | 108,336,574 | |||||||||||||||||||
Incremental shares attributable to equity awards(1) | 520,500 | 636,988 | 523,752 | 822,258 | |||||||||||||||||||
Weighted average shares - diluted | 109,439,486 | 109,065,970 | 109,338,040 | 109,158,832 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(In $ millions) | |||||||||||||||||||||||
Restructuring(1) | (7) | (3) | (40) | (3) | |||||||||||||||||||
Asset impairments | (9) | (12) | (9) | (12) | |||||||||||||||||||
Plant/office closures | (1) | — | (1) | — | |||||||||||||||||||
Total | (17) | (15) | (50) | (15) |
Engineered Materials | Acetyl Chain | Other | Total | ||||||||||||||||||||
(In $ millions) | |||||||||||||||||||||||
Employee Termination Benefits | |||||||||||||||||||||||
As of December 31, 2022 | 4 | 1 | 1 | 6 | |||||||||||||||||||
Additions | 34 | 1 | 5 | 40 | |||||||||||||||||||
Cash payments | (20) | (1) | (4) | (25) | |||||||||||||||||||
As of September 30, 2023 | 18 | 1 | 2 | 21 | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||
(In $ millions, except percentages) | |||||||||||||||||||||||||||||||||||
Statement of Operations Data | |||||||||||||||||||||||||||||||||||
Net sales | 2,723 | 2,301 | 422 | 8,371 | 7,325 | 1,046 | |||||||||||||||||||||||||||||
Gross profit | 673 | 546 | 127 | 1,990 | 1,996 | (6) | |||||||||||||||||||||||||||||
Selling, general and administrative ("SG&A") expenses | (244) | (184) | (60) | (803) | (555) | (248) | |||||||||||||||||||||||||||||
Other (charges) gains, net | (17) | (15) | (2) | (50) | (15) | (35) | |||||||||||||||||||||||||||||
Gain (loss) on disposition of businesses and assets, net | 503 | (2) | 505 | 508 | 7 | 501 | |||||||||||||||||||||||||||||
Operating profit (loss) | 842 | 308 | 534 | 1,428 | 1,322 | 106 | |||||||||||||||||||||||||||||
Equity in net earnings (loss) of affiliates | 12 | 73 | (61) | 50 | 189 | (139) | |||||||||||||||||||||||||||||
Non-operating pension and other postretirement employee benefit (expense) income | (1) | 25 | (26) | (2) | 74 | (76) | |||||||||||||||||||||||||||||
Interest expense | (178) | (154) | (24) | (542) | (237) | (305) | |||||||||||||||||||||||||||||
Interest income | 12 | 34 | (22) | 27 | 36 | (9) | |||||||||||||||||||||||||||||
Dividend income - equity investments | 30 | 30 | — | 95 | 103 | (8) | |||||||||||||||||||||||||||||
Earnings (loss) from continuing operations before tax | 714 | 321 | 393 | 1,051 | 1,491 | (440) | |||||||||||||||||||||||||||||
Earnings (loss) from continuing operations | 950 | 194 | 756 | 1,266 | 1,140 | 126 | |||||||||||||||||||||||||||||
Earnings (loss) from discontinued operations | (1) | (1) | — | (3) | (7) | 4 | |||||||||||||||||||||||||||||
Net earnings (loss) | 949 | 193 | 756 | 1,263 | 1,133 | 130 | |||||||||||||||||||||||||||||
Net earnings (loss) attributable to Celanese Corporation | 951 | 191 | 760 | 1,262 | 1,127 | 135 | |||||||||||||||||||||||||||||
Other Data | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 173 | 100 | 73 | 517 | 309 | 208 | |||||||||||||||||||||||||||||
SG&A expenses as a percentage of Net sales | 9.0 | % | 8.0 | % | 9.6 | % | 7.6 | % | |||||||||||||||||||||||||||
Operating margin(1) | 30.9 | % | 13.4 | % | 17.1 | % | 18.0 | % | |||||||||||||||||||||||||||
Other (charges) gains, net | |||||||||||||||||||||||||||||||||||
Restructuring | (7) | (3) | (4) | (40) | (3) | (37) | |||||||||||||||||||||||||||||
Asset impairments | (9) | (12) | 3 | (9) | (12) | 3 | |||||||||||||||||||||||||||||
Plant/office closures | (1) | — | (1) | (1) | — | (1) | |||||||||||||||||||||||||||||
Total Other (charges) gains, net | (17) | (15) | (2) | (50) | (15) | (35) |
As of September 30, 2023 | As of December 31, 2022 | ||||||||||
(unaudited) | |||||||||||
(In $ millions) | |||||||||||
Balance Sheet Data | |||||||||||
Cash and cash equivalents | 1,357 | 1,508 | |||||||||
Short-term borrowings and current installments of long-term debt - third party and affiliates | 1,408 | 1,306 | |||||||||
Long-term debt, net of unamortized deferred financing costs | 12,291 | 13,373 | |||||||||
Total debt | 13,699 | 14,679 |
Volume | Price | Currency | Total | ||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
(In percentages) | |||||||||||||||||||||||
Engineered Materials | 75 | (12) | 1 | 64 | |||||||||||||||||||
Acetyl Chain | 4 | (18) | 1 | (13) | |||||||||||||||||||
Total Company | 33 | (16) | 1 | 18 |
Volume | Price | Currency | Total | ||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
(In percentages) | |||||||||||||||||||||||
Engineered Materials | 77 | (6) | (1) | 70 | |||||||||||||||||||
Acetyl Chain | (1) | (18) | (1) | (20) | |||||||||||||||||||
Total Company | 28 | (13) | (1) | 14 |
Three Months Ended September 30, | Change | % Change | Nine Months Ended September 30, | Change | % Change | ||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||
(In $ millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Net sales | 1,528 | 929 | 599 | 64.5 | % | 4,743 | 2,787 | 1,956 | 70.2 | % | |||||||||||||||||||||||||||||||||||||
Net Sales Variance | |||||||||||||||||||||||||||||||||||||||||||||||
Volume | 75 | % | 77 | % | |||||||||||||||||||||||||||||||||||||||||||
Price | (12) | % | (6) | % | |||||||||||||||||||||||||||||||||||||||||||
Currency | 1 | % | (1) | % | |||||||||||||||||||||||||||||||||||||||||||
Other (charges) gains, net | (15) | (14) | (1) | (7.1) | % | (44) | (14) | (30) | (214.3) | % | |||||||||||||||||||||||||||||||||||||
Operating profit (loss) | 691 | 114 | 577 | 506.1 | % | 961 | 404 | 557 | 137.9 | % | |||||||||||||||||||||||||||||||||||||
Operating margin | 45.2 | % | 12.3 | % | 20.3 | % | 14.5 | % | |||||||||||||||||||||||||||||||||||||||
Equity in net earnings (loss) of affiliates | 8 | 69 | (61) | (88.4) | % | 37 | 171 | (134) | (78.4) | % | |||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 111 | 43 | 68 | 158.1 | % | 335 | 134 | 201 | 150.0 | % |
Three Months Ended September 30, | Change | % Change | Nine Months Ended September 30, | Change | % Change | ||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||
(In $ millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Net sales | 1,220 | 1,397 | (177) | (12.7) | % | 3,703 | 4,608 | (905) | (19.6) | % | |||||||||||||||||||||||||||||||||||||
Net Sales Variance | |||||||||||||||||||||||||||||||||||||||||||||||
Volume | 4 | % | (1) | % | |||||||||||||||||||||||||||||||||||||||||||
Price | (18) | % | (18) | % | |||||||||||||||||||||||||||||||||||||||||||
Currency | 1 | % | (1) | % | |||||||||||||||||||||||||||||||||||||||||||
Operating profit (loss) | 272 | 312 | (40) | (12.8) | % | 845 | 1,243 | (398) | (32.0) | % | |||||||||||||||||||||||||||||||||||||
Operating margin | 22.3 | % | 22.3 | % | 22.8 | % | 27.0 | % | |||||||||||||||||||||||||||||||||||||||
Dividend income - equity investments | 30 | 30 | — | — | % | 93 | 102 | (9) | (8.8) | % | |||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 55 | 53 | 2 | 3.8 | % | 163 | 161 | 2 | 1.2 | % |
Three Months Ended September 30, | Change | % Change | Nine Months Ended September 30, | Change | % Change | ||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||
(In $ millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Operating profit (loss) | (121) | (118) | (3) | (2.5) | % | (378) | (325) | (53) | (16.3) | % | |||||||||||||||||||||||||||||||||||||
Non-operating pension and other postretirement employee benefit (expense) income | (1) | 25 | (26) | (104.0) | % | (2) | 74 | (76) | (102.7) | % | |||||||||||||||||||||||||||||||||||||
Maturity Date | Aggregate Principal Amount Issued | Discount to Par | Interest Rate | |||||||||||||||||
(In $ millions) | ||||||||||||||||||||
November 15, 2028 | 1,000 | 99.986% | 6.350% | |||||||||||||||||
November 15, 2030 | 999 | 99.950% | 6.550% | |||||||||||||||||
November 15, 2033 | 1,000 | 99.992% | 6.700% |
Maturity Date | Aggregate Principal Amount Tendered | Purchase price per $1,000 principal amount | Total Tender Offer Consideration | Accrued and Unpaid Interest | ||||||||||||||||||||||
(In $ millions) | (In $ millions) | |||||||||||||||||||||||||
June 30, 2024 | 1,473 | $ | 999.92 | 1,473 | 12 | |||||||||||||||||||||
March 15, 2025 | 750 | $ | 1,002.85 | 752 | 20 | |||||||||||||||||||||
April 30, 2024 | 27 | $ | 983.95 | 27 | — |
Nine Months Ended September 30, 2023 | |||||
(In $ millions) | |||||
(unaudited) | |||||
Net sales to third parties | 1,399 | ||||
Net sales to non-guarantor subsidiaries | 823 | ||||
Total net sales | 2,222 | ||||
Gross profit | 455 | ||||
Earnings (loss) from continuing operations | 1,632 | ||||
Net earnings (loss) | 1,629 | ||||
Net earnings (loss) attributable to the Obligor Group | 1,629 |
As of September 30, 2023 | As of December 31, 2022 | ||||||||||
(In $ millions) | |||||||||||
(unaudited) | |||||||||||
Receivables from non-guarantor subsidiaries | 676 | 754 | |||||||||
Other current assets | 1,730 | 1,588 | |||||||||
Total current assets | 2,406 | 2,342 | |||||||||
Goodwill | 536 | 567 | |||||||||
Other noncurrent assets | 2,980 | 2,718 | |||||||||
Total noncurrent assets | 3,516 | 3,285 | |||||||||
Current liabilities due to non-guarantor subsidiaries | 3,060 | 2,100 | |||||||||
Current liabilities due to affiliates | — | 2 | |||||||||
Other current liabilities | 1,745 | 2,201 | |||||||||
Total current liabilities | 4,805 | 4,303 | |||||||||
Noncurrent liabilities due to non-guarantor subsidiaries | 3,373 | 3,400 | |||||||||
Other noncurrent liabilities | 12,796 | 13,842 | |||||||||
Total noncurrent liabilities | 16,169 | 17,242 |
Exhibit Number | ||||||||
Description | ||||||||
2.1† | ||||||||
3.1 | ||||||||
3.1(a) | ||||||||
3.1(b) | ||||||||
3.1(c) | ||||||||
3.2 | ||||||||
4.1 | ||||||||
10.1* | ||||||||
22.1* | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1* | ||||||||
32.2* | ||||||||
101.INS* | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104 | The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 has been formatted in Inline XBRL. |
CELANESE CORPORATION | ||||||||||||||
By: | /s/ LORI J. RYERKERK | |||||||||||||
Lori J. Ryerkerk | ||||||||||||||
Chair of the Board of Directors, | ||||||||||||||
Chief Executive Officer and President | ||||||||||||||
Date: | November 8, 2023 |
By: | /s/ SCOTT A. RICHARDSON | |||||||||||||
Scott A. Richardson | ||||||||||||||
Executive Vice President and | ||||||||||||||
Chief Financial Officer | ||||||||||||||
Date: | November 8, 2023 |
CELANESE CORPORATION, as Holdings | ||||||||
By: | /s/ Dmitry Buriko | |||||||
Name: Dmitry Buriko | ||||||||
Title: Vice President and Treasurer |
CELANESE US HOLDINGS LLC, as the Company | ||||||||
By: | /s/ Dmitry Buriko | |||||||
Name: Dmitry Buriko | ||||||||
Title: Vice President and Treasurer |
CELANESE AMERICAS LLC, as a Subsidiary Guarantor | ||||||||
By: | /s/ Dmitry Buriko | |||||||
Name: Dmitry Buriko | ||||||||
Title: Vice President and Treasurer | ||||||||
CELANESE ACETATE LLC, as a Subsidiary Guarantor | ||||||||
By: | /s/ Dmitry Buriko | |||||||
Name: Dmitry Buriko | ||||||||
Title: Vice President and Treasurer | ||||||||
CELANESE CHEMICALS, INC., as a Subsidiary Guarantor | ||||||||
By: | /s/ Dmitry Buriko | |||||||
Name: Dmitry Buriko | ||||||||
Title: Vice President and Treasurer | ||||||||
CNA HOLDINGS LLC, as a Subsidiary Guarantor | ||||||||
By: | /s/ Dmitry Buriko | |||||||
Name: Dmitry Buriko | ||||||||
Title: Vice President and Treasurer | ||||||||
CELANESE INTERNATIONAL CORPORATION, as a Subsidiary Guarantor | ||||||||
By: | /s/ Dmitry Buriko | |||||||
Name: Dmitry Buriko | ||||||||
Title: Vice President and Treasurer | ||||||||
CELTRAN, INC., as a Subsidiary Guarantor | ||||||||
By: | /s/ Dmitry Buriko | |||||||
Name: Dmitry Buriko | ||||||||
Title: Vice President and Treasurer | ||||||||
KEP AMERICAS ENGINEERING PLASTICS, LLC, as a Subsidiary Guarantor | ||||||||
By: | /s/ Dmitry Buriko | |||||||
Name: Dmitry Buriko | ||||||||
Title: Vice President and Treasurer | ||||||||
TICONA FORTRON INC., as a Subsidiary Guarantor | ||||||||
By: | /s/ Dmitry Buriko | |||||||
Name: Dmitry Buriko | ||||||||
Title: Vice President and Treasurer | ||||||||
TICONA POLYMERS, INC., as a Subsidiary Guarantor | ||||||||
By: | /s/ Dmitry Buriko | |||||||
Name: Dmitry Buriko | ||||||||
Title: Vice President and Treasurer | ||||||||
TICONA LLC, as a Subsidiary Guarantor | ||||||||
By: | /s/ Dmitry Buriko | |||||||
Name: Dmitry Buriko | ||||||||
Title: Vice President and Treasurer | ||||||||
CELANESE GLOBAL RELOCATION LLC, as a Subsidiary Guarantor | ||||||||
By: | /s/ Dmitry Buriko | |||||||
Name: Dmitry Buriko | ||||||||
Title: Vice President and Treasurer | ||||||||
CELANESE LTD., as a Subsidiary Guarantor | ||||||||
By: | Celanese International Corporation, it general partner | |||||||
By: | /s/ Dmitry Buriko | |||||||
Name: Dmitry Buriko | ||||||||
Title: Vice President and Treasurer | ||||||||
CELANESE SALES U.S. LTD., as a Subsidiary Guarantor | ||||||||
By: | Celanese International Corporation, it general partner | |||||||
By: | /s/ Dmitry Buriko | |||||||
Name: Dmitry Buriko | ||||||||
Title: Vice President and Treasurer | ||||||||
BANK OF AMERICA, N.A., as a Consenting Lender | ||||||||
By: | /s/ Bettina Buss | |||||||
Name: Bettina Buss | ||||||||
Title: DIRECTOR | ||||||||
PNC BANK, NA as a Consenting Lender | ||||||||
By: | /s/ Alexander Jodry | |||||||
Name: Alexander Jodry | ||||||||
Title: Vice President | ||||||||
TRUIST BANK, as a Consenting Lender | ||||||||
By: | /s/ Iryna Kolos | |||||||
Name: Iryna Kolos | ||||||||
Title: Vice President | ||||||||
U.S. BANK NATIONAL ASSOCIATION, as a Consenting Lender | ||||||||
By: | /s/ James Austin | |||||||
Name: James Austin | ||||||||
Title: Senior Vice President | ||||||||
THE TORONTO-DOMINION BANK, NEW YORK BRANCH, as a Consenting Lender | ||||||||
By: | /s/ Mike Tkach | |||||||
Name: Mike Tkach | ||||||||
Title: Authorized Signatory | ||||||||
DEUTSCHE BANK AG NEW YORK BRANCH, as a Consenting Lender | ||||||||
By: | /s/ Annie Chung | |||||||
Name: Annie Chung | ||||||||
Title: Managing Director | ||||||||
By: | /s/ Marko Lukin | |||||||
Name: Marko Lukin | ||||||||
Title: Vice President |
JPMorgan Chase Bank, N.A., as a Consenting Lender | ||||||||
By: | /s/ James Shender | |||||||
Name: James Shender | ||||||||
Title: Executive Director | ||||||||
MUFG Bank, Ltd., as a Consenting Lender | ||||||||
By: | /s/ Jorge Georgalos | |||||||
Name: Jorge Georgalos | ||||||||
Title: Director | ||||||||
UniCredit Bank AG, New York Branch, as a Consenting Lender | ||||||||
By: | /s/ Fabio Della Malva | |||||||
Name: Fabio Della Malva | ||||||||
Title: Managing Director | ||||||||
By: | /s/ Gaia Ceriali | |||||||
Name: Gaia Ceriali | ||||||||
Title: Associate |
BANCO DE SABADELL, S.A., MIAMI BRANCH, as a Consenting Lender | ||||||||
By: | /s/ Enrique Castillo | |||||||
Name: Enrique Castillo | ||||||||
Title: Head of Corporate Banking |
GOLDMAN SACHS BANK USA, as a Consenting Lender | ||||||||
By: | /s/ Neal Osborn | |||||||
Name: Neal Osborn | ||||||||
Title: Authorized Signatory |
SANTANDER BANK, N.A., as a Consenting Lender | ||||||||
By: | /s/ Jennifer Baydian | |||||||
Name: Jennifer Baydian | ||||||||
Title: Senior Vice President |
STANDARD CHARTERED BANK, as a Consenting Lender | ||||||||
By: | /s/ Powell Robinson | |||||||
Name: Powell Robinson | ||||||||
Title: Regional Head, Financing Solutions |
First Independent Bank, as a Consenting Lender | ||||||||
By: | /s/ Andrew Harper | |||||||
Name: Andrew Harper | ||||||||
Title: Chief Credit Officer |
BANK OF AMERICA, N.A., as Administrative Agent | ||||||||
By: | /s/ Bettina Buss | |||||||
Name: Bettina Buss | ||||||||
Title: Director |
Name of Company | Jurisdiction | |||||||
Parent Guarantor | ||||||||
Celanese Corporation | Delaware | |||||||
Subsidiary Guarantors | ||||||||
Celanese Acetate LLC | Delaware | |||||||
Celanese Americas LLC | Delaware | |||||||
Celanese Chemicals, Inc. | Delaware | |||||||
Celanese Global Relocation LLC | Delaware | |||||||
Celanese International Corporation | Delaware | |||||||
Celanese Ltd. | Texas | |||||||
Celanese Sales U.S. Ltd. | Texas | |||||||
Celtran, Inc. | Delaware | |||||||
CNA Holdings LLC | Delaware | |||||||
KEP Americas Engineering Plastics, LLC | Delaware | |||||||
Ticona Fortron Inc. | Delaware | |||||||
Ticona LLC | Delaware | |||||||
Ticona Polymers, Inc. | Delaware |
/s/ LORI J. RYERKERK | ||||||||
Lori J. Ryerkerk | ||||||||
Chair of the Board of Directors, | ||||||||
Chief Executive Officer and President | ||||||||
November 8, 2023 |
/s/ SCOTT A. RICHARDSON | ||||||||
Scott A. Richardson | ||||||||
Executive Vice President and | ||||||||
Chief Financial Officer | ||||||||
November 8, 2023 |
/s/ LORI J. RYERKERK | ||||||||
Lori J. Ryerkerk | ||||||||
Chair of the Board of Directors, | ||||||||
Chief Executive Officer and President | ||||||||
November 8, 2023 |
/s/ SCOTT A. RICHARDSON | ||||||||
Scott A. Richardson | ||||||||
Executive Vice President and | ||||||||
Chief Financial Officer | ||||||||
November 8, 2023 |