UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, ~~2022~~2023


☐			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to .

Commission file number 1-16091

________________________________________________

AVIENT CORPORATION

(Exact name of registrant as specified in its charter)


Ohio									34-1730488
(State or other jurisdiction									(I.R.S. Employer Identification No.)
of incorporation or organization)

Avient Center
33587 Walker Road									44012
Avon Lake, Ohio
(Address of principal executive offices)									(Zip Code)

Registrant’s telephone number, including area code: (440) 930-1000

Former name, former address and former fiscal year, if changed since last report: Not Applicable

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares, par value $.01 per share	AVNT	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

The number of the registrant’s outstanding common shares, par value $.01 per share, as of June 30, ~~2022~~2023 was ~~90,936,943.~~91,080,656.

AVIENT CORPORATION

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Avient Corporation

Condensed Consolidated Statements of Income (Unaudited)

(In millions, except per share data)


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended June 30,				Six Months Ended June 30,
		2022		2021		2022		2021			2023		2022		2023		2022
Sales	Sales	$	1,302.4	$	1,235.2	$	2,596.2	$	2,397.5	Sales	$	824.4	$	891.0	$	1,670.1	$	1,783.2
Cost of sales	Cost of sales	998.6		946.5		1,998.7		1,806.4		Cost of sales	583.7		630.1		1,181.8		1,267.9
Gross margin	Gross margin	303.8		288.7		597.5		591.1		Gross margin	240.7		260.9		488.3		515.3
Selling and administrative expense	Selling and administrative expense	174.3		180.6		339.4		362.6		Selling and administrative expense	178.4		160.8		368.9		313.0

Operating income	Operating income	129.5		108.1		258.1		228.5		Operating income	62.3		100.1		119.4		202.3
Interest expense, net	Interest expense, net	(16.2)		(19.5)		(33.1)		(38.8)		Interest expense, net	(29.4)		(16.2)		(58.2)		(33.1)

Other income, net		1.4		1.2		0.8		2.7
Income before income taxes		114.7		89.8		225.8		192.4
Other (expense) income, net										Other (expense) income, net	(0.2)		1.6		0.5		1.0
Income from continuing operations before income taxes										Income from continuing operations before income taxes	32.7		85.5		61.7		170.2
Income tax expense	Income tax expense	(30.0)		(20.4)		(56.6)		(43.3)		Income tax expense	(10.4)		(22.7)		(18.1)		(42.7)
Net income from continuing operations										Net income from continuing operations	22.3		62.8		43.6		127.5
Income (loss) from discontinued operations, net of income taxes										Income (loss) from discontinued operations, net of income taxes	—		21.9		(0.9)		41.7
Net income	Net income	84.7		69.4		169.2		149.1		Net income	$	22.3	$	84.7	$	42.7	$	169.2

Net income attributable to noncontrolling interests	Net income attributable to noncontrolling interests	—		(0.6)		(0.3)		(1.0)		Net income attributable to noncontrolling interests	(0.2)		—		(0.7)		(0.3)
Net income attributable to Avient common shareholders	Net income attributable to Avient common shareholders	$	84.7	$	68.8	$	168.9	$	148.1	Net income attributable to Avient common shareholders	$	22.1	$	84.7	$	42.0	$	168.9

Earnings per share attributable to Avient common shareholders - Basic		$	0.93	$	0.75	$	1.85	$	1.62
Earnings (loss) per share attributable to Avient common shareholders - Basic										Earnings (loss) per share attributable to Avient common shareholders - Basic
Continuing operations										Continuing operations	$	0.24	$	0.69	$	0.47	$	1.39
Discontinued operations										Discontinued operations	—		0.24		(0.01)		0.46
Total										Total	$	0.24	$	0.93	$	0.46	$	1.85

Earnings per share attributable to Avient common shareholders - Diluted		$	0.92	$	0.74	$	1.83	$	1.60

Earnings (loss) per share attributable to Avient common shareholders - Diluted										Earnings (loss) per share attributable to Avient common shareholders - Diluted
Continuing operations										Continuing operations	$	0.24	$	0.68	$	0.47	$	1.38
Discontinued operations										Discontinued operations	—		0.24		(0.01)		0.45
Total										Total	$	0.24	$	0.92	$	0.46	$	1.83

Weighted-average shares used to compute earnings per common share:	Weighted-average shares used to compute earnings per common share:									Weighted-average shares used to compute earnings per common share:
Basic	Basic	91.4		91.3		91.4		91.3		Basic	91.1		91.4		91.1		91.4
Dilutive impact of share-based compensation	Dilutive impact of share-based compensation	0.7		1.1		0.8		1.0		Dilutive impact of share-based compensation	0.8		0.7		0.8		0.8
Diluted	Diluted	92.1		92.4		92.2		92.3		Diluted	91.9		92.1		91.9		92.2

Anti-dilutive shares not included in diluted common shares outstanding	Anti-dilutive shares not included in diluted common shares outstanding	0.2		—		0.3		—		Anti-dilutive shares not included in diluted common shares outstanding	0.5		0.2		0.6		0.3

Cash dividends declared per share of common stock	Cash dividends declared per share of common stock	$	0.2375	$	0.2125	$	0.4750	$	0.4250	Cash dividends declared per share of common stock	$	0.2475	$	0.2375	$	0.4950	$	0.4750

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

1 AVIENT CORPORATION

Avient Corporation

Consolidated Statements of Comprehensive Income (Unaudited)

(In millions)


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended June 30,				Six Months Ended June 30,
		2022		2021		2022		2021			2023		2022		2023		2022
Net income	Net income	$	84.7	$	69.4	$	169.2	$	149.1	Net income	$	22.3	$	84.7	$	42.7	$	169.2
Other comprehensive (loss) income, net of tax:
Other comprehensive income (loss), net of tax:										Other comprehensive income (loss), net of tax:
Translation adjustments and related hedging instruments	Translation adjustments and related hedging instruments	(50.2)		9.5		(59.3)		(41.5)		Translation adjustments and related hedging instruments	(16.3)		(50.2)		1.3		(59.3)
Cash flow hedges	Cash flow hedges	0.9		0.7		2.1		1.5		Cash flow hedges	—		0.9		—		2.1

Total other comprehensive (loss) income		(49.3)		10.2		(57.2)		(40.0)
Other										Other	(1.6)		—		(3.1)		—
Total other comprehensive loss										Total other comprehensive loss	(17.9)		(49.3)		(1.8)		(57.2)
Total comprehensive income	Total comprehensive income	35.4		79.6		112.0		109.1		Total comprehensive income	4.4		35.4		40.9		112.0
Comprehensive income attributable to noncontrolling interests	Comprehensive income attributable to noncontrolling interests	—		(0.6)		(0.3)		(1.0)		Comprehensive income attributable to noncontrolling interests	(0.2)		—		(0.7)		(0.3)
Comprehensive income attributable to Avient common shareholders	Comprehensive income attributable to Avient common shareholders	$	35.4	$	79.0	$	111.7	$	108.1	Comprehensive income attributable to Avient common shareholders	$	4.2	$	35.4	$	40.2	$	111.7

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

2 AVIENT CORPORATION

Avient Corporation

Condensed Consolidated Balance Sheets

(In millions)


		(Unaudited) June 30, 2022		December 31, 2021			(Unaudited) June 30, 2023		December 31, 2022
ASSETS	ASSETS					ASSETS
Current assets:	Current assets:					Current assets:
Cash and cash equivalents	Cash and cash equivalents	$	645.1	$	601.2	Cash and cash equivalents	$	528.7	$	641.1
Accounts receivable, net	Accounts receivable, net	752.6		642.3		Accounts receivable, net	506.4		440.6
Inventories, net	Inventories, net	494.0		461.1		Inventories, net	359.0		372.7

Other current assets	Other current assets	128.4		122.4		Other current assets	116.6		115.3
Total current assets	Total current assets	2,020.1		1,827.0		Total current assets	1,510.7		1,569.7
Property, net	Property, net	638.9		676.1		Property, net	1,007.4		1,049.2
Goodwill	Goodwill	1,256.8		1,286.4		Goodwill	1,705.7		1,671.9
Intangible assets, net	Intangible assets, net	867.2		925.2		Intangible assets, net	1,614.7		1,597.6
Operating lease assets, net		62.7		74.1

Other non-current assets	Other non-current assets	197.9		208.4		Other non-current assets	213.3		196.6
Total assets	Total assets	$	5,043.6	$	4,997.2	Total assets	$	6,051.8	$	6,085.0

LIABILITIES AND SHAREHOLDERS' EQUITY	LIABILITIES AND SHAREHOLDERS' EQUITY					LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:	Current liabilities:					Current liabilities:
Short-term and current portion of long-term debt		$	607.7	$	8.6
Short-term debt						Short-term debt	$	2.2	$	2.2
Accounts payable	Accounts payable	634.0		553.9		Accounts payable	428.7		454.4
Current operating lease obligations		21.4		24.2

Accrued expenses and other current liabilities	Accrued expenses and other current liabilities	307.5		353.9		Accrued expenses and other current liabilities	345.6		412.8
Total current liabilities	Total current liabilities	1,570.6		940.6		Total current liabilities	776.5		869.4
Non-current liabilities:	Non-current liabilities:					Non-current liabilities:
Long-term debt	Long-term debt	1,249.1		1,850.3		Long-term debt	2,179.2		2,176.7
Pension and other post-retirement benefits	Pension and other post-retirement benefits	95.0		100.0		Pension and other post-retirement benefits	67.3		67.2
Deferred income taxes	Deferred income taxes	106.6		100.6		Deferred income taxes	304.8		342.5
Non-current operating lease obligations		41.8		50.1

Other non-current liabilities	Other non-current liabilities	154.7		165.1		Other non-current liabilities	370.3		276.4
Total non-current liabilities	Total non-current liabilities	1,647.2		2,266.1		Total non-current liabilities	2,921.6		2,862.8

SHAREHOLDERS' EQUITY	SHAREHOLDERS' EQUITY					SHAREHOLDERS' EQUITY
Avient shareholders’ equity	Avient shareholders’ equity	1,809.7		1,774.7		Avient shareholders’ equity	2,334.7		2,334.5
Noncontrolling interest	Noncontrolling interest	16.1		15.8		Noncontrolling interest	19.0		18.3
Total equity	Total equity	1,825.8		1,790.5		Total equity	2,353.7		2,352.8
Total liabilities and equity	Total liabilities and equity	$	5,043.6	$	4,997.2	Total liabilities and equity	$	6,051.8	$	6,085.0

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

3 AVIENT CORPORATION

Avient Corporation

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In millions)


		Six Months Ended June 30,					Six Months Ended June 30,
		2022		2021			2023		2022
Operating Activities	Operating Activities					Operating Activities
Net income	Net income	$	169.2	$	149.1	Net income	$	42.7	$	169.2
Adjustments to reconcile net income to net cash provided by operating activities:	Adjustments to reconcile net income to net cash provided by operating activities:					Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization	Depreciation and amortization	71.1		69.5		Depreciation and amortization	96.2		71.1
Accelerated depreciation and amortization		3.2		1.4
Accelerated depreciation						Accelerated depreciation	1.9		3.2

Share-based compensation expense	Share-based compensation expense	6.3		5.6		Share-based compensation expense	6.5		6.3

Changes in assets and liabilities, net of the effect of acquisitions:	Changes in assets and liabilities, net of the effect of acquisitions:					Changes in assets and liabilities, net of the effect of acquisitions:
Increase in accounts receivable	Increase in accounts receivable	(133.2)		(196.1)		Increase in accounts receivable	(66.6)		(133.2)
Increase in inventories		(45.9)		(88.1)
Increase in accounts payable		98.5		108.4
Decrease in pension and other post-retirement benefits		(9.9)		(9.2)
Decrease (increase) in inventories						Decrease (increase) in inventories	14.0		(45.9)
(Decrease) increase in accounts payable						(Decrease) increase in accounts payable	(26.2)		98.5

(Decrease) increase in accrued expenses and other assets and liabilities, net		(52.6)		27.5

Accrued expenses and other assets and liabilities, net						Accrued expenses and other assets and liabilities, net	(93.2)		(62.5)

Net cash provided by operating activities		106.7		68.1
Net cash (used) provided by operating activities						Net cash (used) provided by operating activities	(24.7)		106.7
Investing activities	Investing activities					Investing activities
Capital expenditures	Capital expenditures	(34.0)		(42.1)		Capital expenditures	(45.9)		(34.0)

Settlement of cross-currency swaps		75.1		—
Net cash proceeds used by other assets		—		(2.0)
Net cash provided (used) by investing activities		41.1		(44.1)
Settlement of foreign exchange derivatives						Settlement of foreign exchange derivatives	—		75.1
Net proceeds from divestiture						Net proceeds from divestiture	7.3		—
Net cash used by investing activities						Net cash used by investing activities	(38.6)		41.1
Financing activities	Financing activities					Financing activities

Purchase of common shares for treasury	Purchase of common shares for treasury	(36.4)		(4.2)		Purchase of common shares for treasury	—		(36.4)
Cash dividends paid	Cash dividends paid	(43.5)		(38.8)		Cash dividends paid	(45.0)		(43.5)

Repayment of long-term debt	Repayment of long-term debt	(4.4)		(4.4)		Repayment of long-term debt	(1.0)		(4.4)
Payments of withholding tax on share awards		(4.1)		(4.2)

Other financing						Other financing	(2.3)		(4.1)
Net cash used by financing activities	Net cash used by financing activities	(88.4)		(51.6)		Net cash used by financing activities	(48.3)		(88.4)
Effect of exchange rate changes on cash	Effect of exchange rate changes on cash	(15.5)		(5.7)		Effect of exchange rate changes on cash	(0.8)		(15.5)
Increase (decrease) in cash and cash equivalents		43.9		(33.3)
Decrease in cash and cash equivalents						Decrease in cash and cash equivalents	(112.4)		43.9
Cash and cash equivalents at beginning of year	Cash and cash equivalents at beginning of year	601.2		649.5		Cash and cash equivalents at beginning of year	641.1		601.2
Cash and cash equivalents at end of period	Cash and cash equivalents at end of period	$	645.1	$	616.2	Cash and cash equivalents at end of period	$	528.7	$	645.1

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

4 AVIENT CORPORATION

Avient Corporation

Consolidated Statements of Shareholders' Equity (Unaudited)

(In millions)
Common Shares Shareholders’ Equity
Common
Shares Common
Shares Held
in Treasury Common
Shares Additional
Paid-in
Capital Retained Earnings Common
Shares Held
in Treasury Accumulated
Other
Comprehensive
(Loss) Income Total Avient shareholders' equity Non-controlling Interests Total equity
Balance at January 1, 2022 122.2 (30.6) $ 1.2 $ 1,511.8 $ 1,208.0 $ (900.7) $ (45.6) $ 1,774.7 $ 15.8 $ 1,790.5
Net income — — — — 84.2 — — 84.2 0.3 84.5
Other comprehensive loss — — — — — — (7.9) (7.9) — (7.9)
Cash dividends declared (1)
— — — — (21.7) — — (21.7) — (21.7)
Repurchase of common shares — (0.3) — — — (15.8) — (15.8) — (15.8)
Share-based compensation and exercise of awards — 0.1 — (2.2) — 1.9 — (0.3) — (0.3)
Balance at March 31, 2022 122.2 (30.8) $ 1.2 $ 1,509.6 $ 1,270.5 $ (914.6) $ (53.5) $ 1,813.2 $ 16.1 $ 1,829.3
Net income — — — — 84.7 — — 84.7 0 84.7
Other comprehensive income — — — — — — (49.3) (49.3) — (49.3)
Cash dividends declared (1)
— — — — (21.7) — — (21.7) — (21.7)
Repurchase of common shares — (0.5) — — — (20.6) — (20.6) — (20.6)
Share-based compensation and exercise of awards — — — 3.4 — — — 3.4 — 3.4
Balance at June 30, 2022 122.2 (31.3) $ 1.2 $ 1,513.0 $ 1,333.5 $ (935.2) $ (102.8) $ 1,809.7 $ 16.1 $ 1,825.8


~~(1)~~ ~~Dividends declared per share were $0.2375 and $0.4750 for the three and six months ended June 30, 2022, respectively.~~


		Common Shares		Shareholders’ Equity																	Common Shares		Shareholders’ Equity
		Common Shares	Common Shares Held in Treasury	Common Shares		Additional Paid-in Capital		Retained Earnings		Common Shares Held in Treasury		Accumulated Other Comprehensive (Loss) Income		Total Avient shareholders' equity		Non-controlling Interests		Total equity			Common Shares	Common Shares Held in Treasury	Common Shares		Additional Paid-in Capital		Retained Earnings		Common Shares Held in Treasury		Accumulated Other Comprehensive (Loss) Income		Total Avient shareholders' equity		Non-controlling Interests		Total equity
Balance at January 1, 2021		122.2	(30.8)	$	1.2	$	1,513.3	$	1,057.4	$	(901.2)	$	26.4	$	1,697.1	$	14.6	$	1,711.7
Balance at January 1, 2023																				Balance at January 1, 2023	122.2	(31.3)	$	1.2	$	1,520.5	$	1,823.6	$	(935.0)	$	(75.8)	$	2,334.5	$	18.3	$	2,352.8
Net income																				Net income	—	—	—		—		19.9		—		—		19.9		0.5		20.4
Other comprehensive income																				Other comprehensive income	—	—	—		—		—		—		16.1		16.1		—		16.1

Cash dividends declared ~~(1)~~																				Cash dividends declared ~~(1)~~	—	—	—		—		(22.5)		—		—		(22.5)		—		(22.5)

Share-based compensation and exercise of awards																				Share-based compensation and exercise of awards	—	—	—		0.5		—		1.4		—		1.9		—		1.9

Balance at March 31, 2023																				Balance at March 31, 2023	122.2	(31.3)	$	1.2	$	1,521.0	$	1,820.9	$	(933.6)	$	(59.7)	$	2,349.8	$	18.8	$	2,368.6
Net income	Net income	—	—	—		—		79.3		—		—		79.3		0.4		79.7		Net income	—	—	—		—		22.1		—		—		22.1		0.2		22.3
Other comprehensive loss	Other comprehensive loss	—	—	—		—		—		—		(50.2)		(50.2)		—		(50.2)		Other comprehensive loss	—	—	—		—		—		—		(17.9)		(17.9)		—		(17.9)

Cash dividends declared ~~(1)~~	Cash dividends declared ~~(1)~~	—	—	—		—		(19.5)		—		—		(19.5)		—		(19.5)		Cash dividends declared ~~(1)~~	—	—	—		—		(22.5)		—		—		(22.5)		—		(22.5)
Repurchase of common shares		—	(0.1)	—		—		—		(4.2)		—		(4.2)		—		(4.2)

Share-based compensation and exercise of awards	Share-based compensation and exercise of awards	—	0.1	—		2.9		—		1.6		—		4.5		—		4.5		Share-based compensation and exercise of awards	—	—	—		3.1		—		0.1		—		3.2		—		3.2

Balance at March 31, 2021		122.2	(30.8)	$	1.2	$	1,516.2	$	1,117.2	$	(903.8)	$	(23.8)	$	1,707.0	$	15.0	$	1,722.0
Net income		—	—	—		—		68.8		—		—		68.8		0.6		69.4
Other comprehensive income		—	—	—		—		—		—		10.2		10.2		—		10.2
Noncontrolling interest activity		—	—	—		—		—		—		—		—		2.6		2.6
Cash dividends declared ~~(1)~~		—	—	—		—		(19.4)		—		—		(19.4)		—		(19.4)

Share-based compensation and exercise of awards		—	—	—		1.0		—		0.6		—		1.6		—		1.6

Balance at June 30, 2021		122.2	(30.8)	$	1.2	$	1,517.2	$	1,166.6	$	(903.2)	$	(13.6)	$	1,768.2	$	18.2	$	1,786.4

Balance at June 30, 2023																				Balance at June 30, 2023	122.2	(31.3)	$	1.2	$	1,524.1	$	1,820.5	$	(933.5)	$	(77.6)	$	2,334.7	$	19.0	$	2,353.7


~~(1)~~ ~~Dividends declared per share were $0.2125 and $0.4250 for the three and six months ended June 30, 2021, respectively.~~


	Common Shares		Shareholders’ Equity
	Common Shares	Common Shares Held in Treasury	Common Shares		Additional Paid-in Capital		Retained Earnings		Common Shares Held in Treasury		Accumulated Other Comprehensive (Loss) Income		Total Avient shareholders' equity		Non-controlling Interests		Total equity
Balance at January 1, 2022	122.2	(30.6)	$	1.2	$	1,511.8	$	1,208.0	$	(900.7)	$	(45.6)	$	1,774.7	$	15.8	$	1,790.5
Net income	—	—	—		—		84.2		—		—		84.2		0.3		84.5
Other comprehensive loss	—	—	—		—		—		—		(7.9)		(7.9)		—		(7.9)

Cash dividends declared	—	—	—		—		(21.7)		—		—		(21.7)		—		(21.7)
Repurchase of common shares	—	(0.3)	—		—		—		(15.8)		—		(15.8)		—		(15.8)

Share-based compensation and exercise of awards	—	0.1	—		(2.2)		—		1.9		—		(0.3)		—		(0.3)

Balance at March 31, 2022	122.2	(30.8)	$	1.2	$	1,509.6	$	1,270.5	$	(914.6)	$	(53.5)	$	1,813.2	$	16.1	$	1,829.3
Net income	—	—	—		—		84.7		—		—		84.7		—		84.7
Other comprehensive loss	—	—	—		—		—		—		(49.3)		(49.3)		—		(49.3)
Noncontrolling interest activity	—	—	—		—		—		—		—		—		—		—
Cash dividends declared	—	—	—		—		(21.7)		—		—		(21.7)		—		(21.7)
Repurchase of common shares	—	(0.5)	—		—		—		(20.6)		—		(20.6)		—		(20.6)
Share-based compensation and exercise of awards	—	—	—		3.4		—		—		—		3.4		—		3.4
Other	—	—	—		—		—		—		—		—		—		—
Balance at June 30, 2022	122.2	(31.3)	$	1.2	$	1,513.0	$	1,333.5	$	(935.2)	$	(102.8)	$	1,809.7	$	16.1	$	1,825.8

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

5 AVIENT CORPORATION

Avient Corporation

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Note 1 — BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with Form 10-Q instructions and in the opinion of management contain all adjustments, including those that are normal, recurring and necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. These interim financial statements should be read in conjunction with the financial statements and accompanying notes included in the Annual Report on Form 10-K for the year ended December 31, ~~2021~~2022 of Avient ~~Corporation, formerly known as PolyOne~~ Corporation. When used in this Quarterly Report on Form 10-Q, the terms “we,” “us,” “our,” “Avient” and the “Company” mean Avient Corporation and its consolidated subsidiaries.

Operating results for the three and six months ended June 30, ~~2022~~2023 are not necessarily indicative of the results that may be attained in subsequent periods or for the year ending December 31, ~~2022.~~2023. Historical information has been retrospectively adjusted to reflect the classification of discontinued operations. Discontinued operations are further discussed in Note 3, Discontinued Operations.

Accounting Standards Adopted

Accounting Standards Update (ASU) 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50), provides guidance that requires entities that use supplier finance programs in connection with the purchase of goods and services to disclose the key terms of the program and information about their obligations that are outstanding at the end of the reporting period. The Company has evaluated the impact of adopting this standard and has concluded that there is not material activity under supplier finance programs that would require disclosure within the notes to the consolidated financial statements.

Note 2 — BUSINESS COMBINATIONS

On ~~April 19,~~September 1, 2022, ~~we entered into a signing protocol (the Signing Protocol) with Koninklijke DSM N.V., a public limited liability company incorporated under~~ the ~~laws~~Company completed the acquisition of the Netherlands (DSM). Pursuant to the terms of the Signing Protocol, Avient and DSM agreed that, after completion of the consultation process with the relevant Dutch works council, they would will enter into a Sale and Purchase Agreement (the Purchase Agreement) pursuant to which Avient will, among other things, acquire from DSM (a) all of the equity of DSM Protective Materials ~~International B.V., a private limited liability company organized under~~business, including the ~~laws~~Dyneema® brand, the World's Strongest Fiber™. The ultra-light specialty fiber is used in demanding applications such as ballistic personal protection, marine and sustainable infrastructure, renewable energy, industrial protection and outdoor sports. The acquired business is collectively referred to as APM, and the acquisition is referred to as the APM Acquisition. The APM Acquisition enhances Avient's material offerings of composites and engineered fibers, and results are recognized within the ~~Netherlands, DSM Protective~~Specialty Engineered Materials B.V., a private limited liability company organized under the laws of the Netherlands, and DSM Protective Materials LLC, a Delaware limited liability company, and (b) certain other assets related to DSM's protective materials business (including the Dyneema© Brand) (such equity and assets together, the Dyneema Business) (such acquisition of the Dyneema Business, the Dyneema Acquisition). Avient and DSM entered into the Purchase Agreement on June 23, 2022.segment.

Pursuant to the terms of the Purchase Agreement, we have agreed to acquire the Dyneema Business for an aggregate purchase price of €1.38 billion, subject to certain customary adjustments for a European “locked box” transaction (the Purchase Price). Certain Purchase Price payments are Euro-denominated and are subject to change based on fluctuations in the euro-U.S. dollar exchange rate. The closing of the Dyneema Acquisition will be subject to the satisfaction or waiver of customary and other conditions. We have received all required regulatory approvals.

~~In conjunction with our intent to acquire the Dyneema Business, we are exploring a potential sale of our Distribution business.~~

~~On July 1, 2021,~~Total consideration paid by the Company ~~completed its acquisition of Magna Colours Ltd. (Magna Colours), a market leader in sustainable, water-based inks technology for~~to complete the ~~textile screen printing industry, for the purchase price of $47.6 million,~~APM Acquisition was $1.4 billion, net of cash acquired. The ~~results~~APM Acquisition is being accounted for under the acquisition method of accounting in accordance with Financial Accounting Standards Board Accounting Standards Codification (ASC) Topic 805. As of June 30, 2023, the ~~Magna Colours business are reported in~~purchase accounting for the ~~Color, Additives~~APM Acquisition was preliminary and ~~Inks segment. The~~ purchase price allocation ~~resulted in intangible assets~~adjustments will be made through the end of ~~$27.5 million and goodwill of $22.0 million, partially offset by net liabilities assumed. Goodwill~~the Company's measurement period, which is not ~~deductible~~to exceed one year from the acquisition date. During the measurement period, we will continue to obtain information to assist in finalizing the fair values of assets acquired as well as the associated deferred income taxes and residual goodwill, which may differ materially from the preliminary estimates. Measurement period adjustments since our initial preliminary estimates reported in our third quarter 2022 Form 10-Q are reflected in the table below. Measurement period adjustments recorded to the Condensed Consolidated Statement of Income were not material for ~~tax purposes. The intangible assets that have been acquired are being amortized over a period of 10 to 20 years. Purchase accounting was finalized as of~~the three and six months ended June 30, ~~2022.~~2023.

6 AVIENT CORPORATION

The preliminary purchase price allocation is as follows:


(in millions)	9/1/2022 Allocation		Measurement period adjustments		6/30/2023 Allocation
Cash and cash equivalents	$	50.7	$	—	$	50.7
Accounts receivable	52.2		1.8		54.0

Inventories	136.2		(7.8)		128.4
Other current assets	2.0		—		2.0
Property	361.9		(2.0)		359.9
Intangible assets:
Indefinite-lived trade names	254.9		—		254.9
Customer relationships	198.7		15.0		213.7
Patents, technology, and other	275.1		—		275.1
Goodwill	277.1		126.9		404.0



Other non-current assets	12.3		—		12.3
Accounts payable	32.2		—		32.2


Accrued expenses and other current liabilities	12.9		0.3		13.2
Deferred tax liabilities	86.1		131.3		217.4

Noncontrolling interests	—		2.3		2.3
Other non-current liabilities	13.1		—		13.1
Total purchase price consideration	$	1,476.8	$	—	$	1,476.8

Definite-lived intangible assets that have been acquired have a preliminary useful life range of 15 - 20 years. Goodwill of $404.0 million resulting from the acquisition was recorded to the Specialty Engineered Materials segment. The goodwill recognized is primarily attributable to intangible assets that do not qualify for separate recognition and the deferred tax impact of applying purchase accounting. Goodwill is not deductible for tax purposes.

Had the APM Acquisition occurred on January 1, 2021, sales and income from continuing operations before income taxes on a pro forma basis would have been as follows:


	Three Months Ended		Six Months Ended
	June 30, 2022		June 30, 2022
Sales	$	991.6	$	1,978.6
Income from continuing operations before income taxes	91.5		179.6

The unaudited pro forma financial information has been calculated after applying our accounting policies and adjusting the historical results with pro forma adjustments that assume the APM Acquisition occurred on January 1, 2021. These unaudited pro forma results do not represent financial results realized, nor are they intended to be a projection of future results.

The pro forma income from continuing operations before income taxes for the three and six months ended June 30, 2022 gives effect to intangible amortization from the preliminary purchase price allocation and increased interest expense resulting from the APM Acquisition financing transactions.

Note 3 — DISCONTINUED OPERATIONS

On November 1, 2022, Avient sold its Distribution business to an affiliate of H.I.G. Capital for $950.0 million in cash consideration, subject to a customary working capital adjustment. Total proceeds received were $935.5 million, of which $7.3 million was received in the six months ended June 30, 2023. The results of the Distribution business are classified as discontinued operations for all periods presented.

The following table summarizes the major line items constituting pretax income of discontinued operations associated with the Distribution business for the three and six months ended June 30, 2023 and 2022.

7 AVIENT CORPORATION


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2023		2022		2023		2022
Sales	$	—	$	411.4	$	—	$	813.0
Cost of sales	—		368.3		—		730.5
Selling and administrative expense	—		13.7		0.2		26.7
Other (income) expense	—		(0.1)		0.7		(0.1)
Income (loss) from discontinued operations before income taxes	—		29.3		(0.9)		55.7
Income tax expense	—		(7.4)		—		(14.0)
Income (loss) from discontinued operations, net of income taxes	$	—	$	21.9	$	(0.9)	$	41.7

Note 4 — GOODWILL AND INTANGIBLE ASSETS

Goodwill as of June 30, ~~2022~~2023 and December 31, ~~2021~~2022 and changes in the carrying amount of goodwill by segment were as follows:


(In millions)	(In millions)	Specialty Engineered Materials		Color, Additives and Inks		Distribution		Total		(In millions)	Specialty Engineered Materials		Color, Additives and Inks		Total
Balance at December 31, 2021		$	236.3	$	1,048.5	$	1.6	$	1,286.4

Balance at December 31, 2022										Balance at December 31, 2022	$	652.2	$	1,019.7	$	1,671.9
Acquisition of businesses										Acquisition of businesses	7.5		—		7.5
Currency translation	Currency translation	(1.6)		(28.0)		—		(29.6)		Currency translation	15.0		11.3		26.3
Balance at June 30, 2022		$	234.7	$	1,020.5	$	1.6	$	1,256.8
Balance at June 30, 2023										Balance at June 30, 2023	$	674.7	$	1,031.0	$	1,705.7

Indefinite and finite-lived intangible assets consisted of the following:


		As of June 30, 2022									As of June 30, 2023
(In millions)	(In millions)	Acquisition Cost		Accumulated Amortization		Currency Translation		Net		(In millions)	Acquisition Cost		Accumulated Amortization		Currency Translation		Net
Customer relationships	Customer relationships	$	507.2	$	(148.3)	$	(6.5)	$	352.4	Customer relationships	$	720.9	$	(182.0)	$	16.7	$	555.6
Patents, technology and other	Patents, technology and other	566.7		(149.0)		(15.9)		401.8		Patents, technology and other	841.8		(191.7)		18.6		668.7
Indefinite-lived trade names	Indefinite-lived trade names	113.2		—		(0.2)		113.0		Indefinite-lived trade names	368.0		—		22.4		390.4
Total	Total	$	1,187.1	$	(297.3)	$	(22.6)	$	867.2	Total	$	1,930.7	$	(373.7)	$	57.7	$	1,614.7


		As of December 31, 2021									As of December 31, 2022
(In millions)	(In millions)	Acquisition Cost		Accumulated Amortization		Currency Translation		Net		(In millions)	Acquisition Cost		Accumulated Amortization		Currency Translation		Net
Customer relationships	Customer relationships	$	507.2	$	(135.4)	$	6.0	$	377.8	Customer relationships	$	695.9	$	(164.3)	$	5.9	$	537.5
Patents, technology and other	Patents, technology and other	566.7		(134.3)		1.8		434.2		Patents, technology and other	841.8		(168.8)		3.5		676.5
Indefinite-lived trade names	Indefinite-lived trade names	113.2		—		—		113.2		Indefinite-lived trade names	368.0		—		15.6		383.6
Total	Total	$	1,187.1	$	(269.7)	$	7.8	$	925.2	Total	$	1,905.7	$	(333.1)	$	25.0	$	1,597.6

Note 45 — ~~LEASING ARRANGEMENTS~~EMPLOYEE SEPARATION AND RESTRUCTURING COSTS

We ~~lease certain manufacturing facilities, warehouse space, machinery~~are engaged in a restructuring program associated with our integration of Clariant Color. These actions are expected to enable us to better serve customers, improve efficiency and ~~equipment, vehicles~~deliver cost savings. We expect that the full restructuring plan will be implemented through 2024 and ~~information technology equipment. The majority~~anticipate that we will incur approximately $75.0 million of ~~our leases are operating leases. Finance leases are immaterial to our condensed consolidated financial statements. Operating lease assets and obligations are reflected within~~ ~~Operating lease assets, net, Current operating lease obligations,~~ ~~and~~ ~~Non-current operating lease obligations,~~ ~~respectively, on~~charges in connection with the ~~Condensed Consolidated Balance Sheets.~~

~~Lease expense is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are~~restructuring plan. As of June 30, 2023, $56.5 million has been incurred. ~~The components of lease cost recognized within our Condensed Consolidated Statements of Income were as follows:~~

Three Months Ended
June 30, Six Months Ended
June 30,
(In millions) 2022 2021 2022 2021
Cost of sales $ 4.8 $ 5.5 $ 9.2 $ 9.3
Selling and administrative expense 2.2 3.4 4.5 7.8
Total operating lease cost $ 7.0 $ 8.9 $ 13.7 $ 17.1

We often have options to renew lease terms for buildings and other assets. The exercise of lease renewal options are generally at our sole discretion. In addition, certain lease arrangements may be terminated prior to their original expiration date at our discretion. We evaluate renewal and termination options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. The weighted average remaining lease term for our operating leases as of June 30, 2022 and 2021 was 4.8 years and 4.9 years, respectively.

78 AVIENT CORPORATION

~~The discount rate implicit within our leases~~A summary of the Clariant Color integration restructuring is ~~generally not determinable~~shown below:


(in millions)	Workforce reductions		Plant closing and other		Total






Balance at January 1, 2022	$	7.5	$	0.6	$	8.1
Restructuring costs	30.9		2.1		32.9
Payments, utilization and translation	(4.0)		(0.3)		(4.3)
Balance at December 31, 2022	$	34.4	$	2.3	$	36.7
Restructuring costs	1.3		2.3		3.6
Payments, utilization and translation	(2.6)		(1.8)		(4.5)
Balance at March 31, 2023	$	33.0	$	2.8	$	35.8
Restructuring costs	(0.3)		1.0		0.7
Payments, utilization and translation	(0.8)		(0.1)		(0.9)
Balance at June 30, 2023	$	31.9	$	3.7	$	35.6

Personnel reductions were taken in the first half of 2023 as a result of slowing global demand, which resulted in a charge of $0.9 million and ~~therefore,~~$15.0 million recorded during the ~~Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for our leases is determined based on lease term~~three and ~~currency in which lease payments are made, adjusted for impacts of collateral. The weighted average discount rates used to measure our operating lease liabilities as of~~six months ended June 30, ~~2022 and 2021 were 3.7%.~~

~~Maturity Analysis of Operating Lease Liabilities:~~

As of June 30, 2022
(In millions)
2022 $ 12.4
2023 19.9
2024 12.9
2025 8.1
2026 5.0
Thereafter 11.3
Total lease payments 69.4
Less amount of lease payment representing interest (6.2)
Total present value of lease payments $ 63.2
2023, respectively.

Note 56 — INVENTORIES, NET

Components of Inventories, net are as follows:


(In millions)	(In millions)	As of June 30, 2022		As of December 31, 2021		(In millions)	As of June 30, 2023		As of December 31, 2022
Finished products	Finished products	$	252.7	$	244.4	Finished products	$	151.8	$	157.7
Work in process	Work in process	26.1		21.2		Work in process	26.1		22.7
Raw materials and supplies	Raw materials and supplies	215.2		195.5		Raw materials and supplies	181.1		192.3
Inventories, net	Inventories, net	$	494.0	$	461.1	Inventories, net	$	359.0	$	372.7

Note 67 — PROPERTY, NET

Components of Property, net are as follows:


(In millions)	(In millions)	As of June 30, 2022		As of December 31, 2021		(In millions)	As of June 30, 2023		As of December 31, 2022
Land and land improvements	Land and land improvements	$	86.1	$	91.5	Land and land improvements	$	104.0	$	103.5
Buildings	Buildings	344.3		350.6		Buildings	435.3		432.2
Machinery and equipment	Machinery and equipment	968.5		972.3		Machinery and equipment	1,335.8		1,325.3
Property, gross	Property, gross	1,398.9		1,414.4		Property, gross	1,875.1		1,861.0
Less accumulated depreciation	Less accumulated depreciation	(760.0)		(738.3)		Less accumulated depreciation	(867.7)		(811.8)
Property, net	Property, net	$	638.9	$	676.1	Property, net	$	1,007.4	$	1,049.2

Note 78 — INCOME TAXES

During the three and six months ended June 30, 2023, the Company’s effective tax rate of 31.8% and 29.3%, respectively, was above the U.S. federal statutory rate of 21.0% primarily due to an increase in foreign valuation allowances, tax on global intangible low-taxed income (GILTI), permanent tax items, and foreign withholding tax. These unfavorable items were partially offset by U.S. research and development credits and favorable international tax rate differential.

During the three and six months ended June 30, 2022, the Company’s effective tax rate of ~~26.1%~~26.6% and ~~25.0%~~25.1%, respectively, was above the U.S. federal statutory rate of 21.0% primarily due to ~~state taxes,~~an increase in foreign valuation allowances, foreign withholding tax, ~~liability accrued associated with the future repatriation of certain current year foreign earnings,~~state taxes, and ~~global intangible low-taxed income (GILTI) tax.~~tax on GILTI. These unfavorable items were also partially offset by ~~the~~ U.S. research and ~~development tax credit.~~

~~During the three and six months ended June 30, 2021, the Company’s effective~~favorable international tax rate of 22.6% and 22.5%, respectively, was above the U.S. federal statutory rate of 21.0% primarily due to state taxes, foreign withholding tax liability accrued associated with the future repatriation of certain current year foreign earnings and GILTI tax. These unfavorable items were partially offset by changes in net foreign deferred tax assets from a foreign statutory tax rate change, favorable prior year foreign return-to-provision adjustments and U.S. research and development tax credit.differential.

89 AVIENT CORPORATION

Note 89 — FINANCING ARRANGEMENTS

Debt consists of the following instruments:


As of June 30, 2022 (in millions)		Principal Amount		Unamortized discount and debt issuance cost		Net Debt		Weighted average interest rate
As of June 30, 2023 (in millions)										As of June 30, 2023 (in millions)	Principal Amount		Unamortized discount and debt issuance cost		Net Debt		Weighted average interest rate
Senior secured revolving credit facility due 2026	Senior secured revolving credit facility due 2026	$	—	$	—	$	—	—	%	Senior secured revolving credit facility due 2026	$	—	$	—	$	—	—	%
Senior secured term loan due 2026	Senior secured term loan due 2026	608.2		5.3		602.9		2.21	%	Senior secured term loan due 2026	426.9		2.7		424.2		7.77	%
5.25% senior notes due 2023		600.0		0.8		599.2		5.25	%
Senior secured term loan due 2029										Senior secured term loan due 2029	404.7		17.8		386.9		7.96	%
5.75% senior notes due 2025	5.75% senior notes due 2025	650.0		5.9		644.1		5.75	%	5.75% senior notes due 2025	650.0		3.9		646.1		5.75	%
7.125% senior notes due 2030										7.125% senior notes due 2030	725.0		9.5		715.5		7.125	%
Other Debt	Other Debt	10.6		—		10.6				Other Debt	8.7		—		8.7
Total Debt	Total Debt	1,868.8		12.0		1,856.8				Total Debt	2,215.3		33.9		2,181.4
Less short-term and current portion of long-term debt		608.5		0.8		607.7
Less short-term debt										Less short-term debt	2.2		—		2.2
Total long-term debt, net of current portion	Total long-term debt, net of current portion	$	1,260.3	$	11.2	$	1,249.1			Total long-term debt, net of current portion	$	2,213.1	$	33.9	$	2,179.2


As of December 31, 2021 (in millions)		Principal Amount		Unamortized discount and debt issuance cost		Net Debt		Weighted average interest rate
As of December 31, 2022 (in millions)										As of December 31, 2022 (in millions)	Principal Amount		Unamortized discount and debt issuance cost		Net Debt		Weighted average interest rate
Senior secured revolving credit facility due 2026	Senior secured revolving credit facility due 2026	$	—	$	—	$	—	—	%	Senior secured revolving credit facility due 2026	$	—	$	—	$	—	—	%
Senior secured term loan due 2026	Senior secured term loan due 2026	611.5		6.2		605.3		1.85	%	Senior secured term loan due 2026	426.9		3.3		423.6		3.81	%
5.25% senior notes due 2023		600.0		1.4		598.6		5.25	%
Senior secured term loan due 2029										Senior secured term loan due 2029	404.7		19.2		385.5		6.53	%

5.75% senior notes due 2025	5.75% senior notes due 2025	650.0		6.8		643.2		5.75	%	5.75% senior notes due 2025	650.0		4.8		645.2		5.75	%
7.125% senior notes due 2030										7.125% senior notes due 2030	725.0		10.1		714.9		7.125	%
Other Debt	Other Debt	11.8		—		11.8				Other Debt	9.7		—		9.7
Total Debt	Total Debt	1,873.3		14.4		1,858.9				Total Debt	2,216.3		37.4		2,178.9
Less short-term and current portion of long-term debt		8.6		—		8.6
Less short-term debt										Less short-term debt	2.2		—		2.2
Total long-term debt, net of current portion	Total long-term debt, net of current portion	$	1,864.7	$	14.4	$	1,850.3			Total long-term debt, net of current portion	$	2,214.1	$	37.4	$	2,176.7

As of June 30, ~~2022,~~2023, we had no borrowings outstanding under our senior secured revolving credit facility due 2026 (the Revolving Credit ~~Facility,~~Facility), which had remaining availability of ~~$487.1~~$226.6 million.

The agreements governing our ~~senior secured revolving credit facility,~~Revolving Credit Facility and our senior secured term loan, and the indentures and credit agreements governing other debt, contain a number of customary financial and restrictive covenants that, among other things, limit our ability to: ~~consummate asset sales,~~sell or otherwise transfer assets, including in a spin-off, incur additional debt or liens, consolidate or merge with any entity or transfer or sell all or substantially all of our assets, pay dividends or make certain other restricted payments, make investments, enter into transactions with affiliates, create dividend or other payment restrictions with respect to subsidiaries, make capital investments and alter the business we conduct. As of June 30, ~~2022,~~2023, we were in compliance with all covenants.

The estimated fair value of Avient’s debt instruments at June 30, ~~2022~~2023 and December 31, ~~2021~~2022 was ~~$1,826.7~~$2,186.4 million and ~~$1,917.7~~$2,153.1 million, respectively. The fair value of Avient’s debt instruments was estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities and represent Level 2 measurements within the fair value hierarchy.

In connection with the Dyneema Acquisition, on April 19, 2022, we entered into a Commitment Letter with Morgan Stanley Senior Funding, Inc. and J.P. Morgan (the Commitment Parties), pursuant to which the Commitment Parties committed to provide us with a $640.0 million senior secured term loan facility and a $900.0 million senior unsecured bridge loan (the Bridge Facility) for purposes of funding the Dyneema Acquisition. The commitment is subject to various conditions, including the execution of definitive documentation and other customary closing conditions. We currently intend to issue new senior long-term debt in lieu of borrowing under the Bridge Facility.

Note 910 — SEGMENT INFORMATION

Avient has 3two reportable segments: (1) Color, Additives and ~~Inks;~~Inks and (2) Specialty Engineered ~~Materials; and (3) Distribution.~~Materials. Operating income is the primary measure that is reported to our chief operating decision maker (CODM) for purposes of allocating resources to the segments and assessing their performance. Operating income at the segment level does not include: corporate general and administrative expenses that are not allocated to segments; intersegment sales and profit eliminations; charges related to specific strategic initiatives such as the consolidation of operations; restructuring activities, including employee separation costs resulting from personnel reduction programs, plant closure and phase-in costs; executive separation agreements; share-based compensation costs; asset impairments; environmental remediation costs, along with related gains from insurance recoveries, and other

~~9 AVIENT CORPORATION~~

liabilities for facilities no longer owned or closed in prior years; ~~gains and losses on the divestiture of joint ventures and equity investments;~~ actuarial gains and losses associated with our pension and other post-retirement benefit plans; and certain other items that are not included in the measure of segment profit or loss that is reported to and reviewed by our CODM. These costs are included in ~~Corporate and eliminations.~~Corporate.

10 AVIENT CORPORATION

Segment information for the three and six months ended June 30, ~~2022~~2023 and ~~2021~~2022 is as follows:


		Three Months Ended June 30, 2022						Three Months Ended June 30, 2021							Three Months Ended June 30, 2023				Three Months Ended June 30, 2022
(In millions)	(In millions)	Sales to External Customers		Total Sales		Operating Income		Sales to External Customers		Total Sales		Operating Income		(In millions)	Sales		Operating Income		Sales		Operating Income
Color, Additives and Inks	Color, Additives and Inks	$	646.8	$	649.1	$	93.6	$	622.3	$	624.4	$	86.3	Color, Additives and Inks	$	524.5	$	68.0	$	649.1	$	93.6
Specialty Engineered Materials	Specialty Engineered Materials	223.8		243.9		36.6		219.1		240.6		37.3		Specialty Engineered Materials	300.8		39.7		242.3		35.2
Distribution		431.8		443.2		27.1		392.1		404.4		23.7
Corporate and eliminations		—		(33.8)		(27.8)		1.7		(34.2)		(39.2)

Corporate														Corporate	(0.9)		(45.4)		(0.4)		(28.7)
Total	Total	$	1,302.4	$	1,302.4	$	129.5	$	1,235.2	$	1,235.2	$	108.1	Total	$	824.4	$	62.3	$	891.0	$	100.1


		Six Months Ended June 30, 2022						Six Months Ended June 30, 2021							Six Months Ended June 30, 2023				Six Months Ended June 30, 2022
(In millions)	(In millions)	Sales to External Customers		Total Sales		Operating Income		Sales to External Customers		Total Sales		Operating Income		(In millions)	Sales		Operating Income		Sales		Operating Income
Color, Additives and Inks	Color, Additives and Inks	$	1,294.8	$	1,298.6	$	188.1	$	1,230.2	$	1,233.7	$	175.1	Color, Additives and Inks	$	1,061.5	$	133.6	$	1,298.6	$	188.1
Specialty Engineered Materials	Specialty Engineered Materials	447.1		488.6		76.3		414.9		457.1		71.5		Specialty Engineered Materials	610.5		82.8		485.4		73.5
Distribution		854.3		876.1		51.3		747.0		767.1		47.7
Corporate and eliminations		—		(67.1)		(57.6)		5.4		(60.4)		(65.8)

Corporate														Corporate	(1.9)		(97.0)		(0.8)		(59.3)
Total	Total	$	2,596.2	$	2,596.2	$	258.1	$	2,397.5	$	2,397.5	$	228.5	Total	$	1,670.1	$	119.4	$	1,783.2	$	202.3


		Total Assets					Total Assets
(In millions)	(In millions)	As of June 30, 2022		As of December 31, 2021		(In millions)	As of June 30, 2023		As of December 31, 2022
Color, Additives and Inks	Color, Additives and Inks	$	2,933.9	$	2,965.2	Color, Additives and Inks	$	2,748.8	$	2,703.1
Specialty Engineered Materials	Specialty Engineered Materials	783.3		771.0		Specialty Engineered Materials	2,554.5		2,526.5
Distribution		404.3		384.9
Corporate and eliminations		922.1		876.1

Corporate						Corporate	748.5		855.4

Total assets	Total assets	$	5,043.6	$	4,997.2	Total assets	$	6,051.8	$	6,085.0

Note 1011 — COMMITMENTS AND CONTINGENCIES

We have been notified by federal and state environmental agencies and by private parties that we may be a potentially responsible party (PRP) in connection with the environmental investigation and remediation of certain sites. While government agencies frequently assert that PRPs are jointly and severally liable at these sites, in our experience, the interim and final allocations of liability costs are generally made based on the relative contribution of waste. We may also initiate corrective and preventive environmental projects of our own to ~~ensure~~support safe and lawful activities at our operations. We believe that compliance with current governmental regulations at all levels will not have a material adverse effect on our financial position, results of operations or cash flows.

In September 2007, the United States District Court for the Western District of Kentucky (Court) in the case of Westlake Vinyls, Inc. v. Goodrich Corporation, et al., held that Avient must pay the remediation costs at the former Goodrich Corporation Calvert City facility (now largely owned and operated by Westlake Vinyls, Inc. (Westlake Vinyls)), together with certain defense costs of Goodrich Corporation. The rulings also provided that Avient can seek indemnification for contamination attributable to Westlake Vinyls.

~~10 AVIENT CORPORATION~~

Following the rulings, the parties to the litigation agreed to settle all claims regarding past environmental costs incurred at the site. The settlement agreement provides a mechanism to pursue allocation of future remediation costs at the Calvert City site to Westlake Vinyls. We ~~will adjust our accrual, in the future, consistent with any such future allocation of costs.Additionally, we~~ continue to pursue available insurance coverage related to this matter and recognize gains as we receive reimbursement.

The environmental obligation at the site arose as a result of an agreement between The B.F. Goodrich Company (n/k/a Goodrich Corporation) and our predecessor, The Geon Company, at the time of the initial public offering in 1993. Under the agreement, The Geon Company agreed to indemnify Goodrich Corporation for certain environmental costs at the site. Neither Avient nor The Geon Company ever operated the facility.

Since 2009, Avient, along with respondents Westlake Vinyls, and Goodrich Corporation, has worked with the United States Environmental Protection Agency (USEPA) to address ~~contamination~~the remedial activities at the site. The USEPA issued its Record of Decision (ROD) in September 2018, selecting a remedy consistent with our accrual assumptions. In April 2019, the respondents signed an Administrative Settlement Agreement and Order on Consent with the USEPA

11 AVIENT CORPORATION

to conduct the remedial ~~design~~ actions at the site. In February 2020, ~~the respondents~~three companies signed the agreed Consent Decree and remedial action Work Plan, which received Federal Court approval in January 2021. ~~Our current reserve totals $107.7~~As of June 30, 2023 we had accrued $107.9 million for this ~~matter. During~~matter which is aligned to this Federal Court of Approval and USEPA ROD. We have begun remedial action for a portion of the ~~three~~site and ~~six months ended June 30, 2022, Avient recognized $3.0~~continue to progress through remedial design for other portions of the site. In the third quarter of 2023, we expect to receive construction proposals for a portion of the site remedy, which are expected to further aid in remedial design and our assessment of projected costs. Information contained in the proposals will be assessed against our accrual assumptions when received.

Total environmental accruals of $117.2 million and ~~$5.0~~$118.3 million ~~of expense, respectively, related to environmental remediation costs, compared to $12.5 million and $13.0 million recognized during the three and six months ended June 30, 2021, respectively.~~

During the three and six months ended June 30, 2022, Avient received $7.6 million and $8.2 million, respectively, of insurance recoveries for previously incurred environmental costs. During the six months ended June 30, 2021, Avient received $4.5 million of insurance recoveries. These expenses and insurance recoveries are ~~included~~reflected within ~~Cost of sales~~ ~~within our Condensed Consolidated Statements of Income.~~

~~Our Condensed Consolidated Balance Sheets include accruals totaling $119.9 million and $124.5 million as of June 30, 2022 andDecember 31, 2021, respectively, based on our estimates of probable future environmental expenditures relating to previously contaminated sites. These undiscounted amounts are included in~~ Accrued expenses and other current liabilities and Other non-current liabilities ~~on the accompanying~~in our Condensed Consolidated Balance ~~Sheets. The~~Sheet as of June 30, 2023 andDecember 31, 2022, respectively. These undiscounted accruals represent our best estimate of probable future costs that we can reasonably estimate, based upon currently available information and technology and our view of the most likely remedy. Depending upon the results of future testing, completion and results of remedial investigation and feasibility studies, the ultimate remediation alternatives undertaken, changes in regulations, technology development, new information, newly discovered conditions and other factors, itIt is reasonably possible that we could incur additional costs in excess of the amount accrued, ~~at June 30, 2022.~~which could be material to our Condensed Consolidated Statement of Income. However, such additional costs ~~if any,~~ cannot currently be estimated as they are dependent upon the results of future testing and findings during the execution of remedial design and remedial action, the ultimate remedial action undertaken, changes in regulations, technology development, new information, newly discovered conditions and other factors that are not currently ~~estimated.~~known.

During the three and six months ended June 30, 2023, Avient recognized $13.0 million and $14.4 million, respectively, primarily due to the ongoing remedial action at Calvert City, compared to $3.0 million and $5.0 million recognized during the three and six months ended June 30, 2022, respectively. These costs are recognized in Cost of Sales within the Condensed Consolidated Statements of Income.

Avient is subject to a broad range of claims, administrative and legal proceedings such as lawsuits that relate to contractual allegations, tax audits, product claims, personal injuries, and employment related matters. Although it is not possible to predict with certainty the outcome or cost of these matters, the Company believes our current reserves are appropriate and these matters will not have a material adverse effect on the condensed consolidated financial statements.

Note 1112 — DERIVATIVES AND HEDGING

We are exposed to market risks, such as changes in foreign currency exchange rates and interest rates. To manage the volatility related to these exposures we may enter into various derivative transactions. We formally assess, designate and document, as a hedge of an underlying exposure, the qualifying derivative instrument that will be accounted for as an accounting hedge at inception. Additionally, we assess both at inception and at least quarterly thereafter, whether the financial instruments used in the hedging transaction are effective at offsetting changes in either the fair values or cash flows of the underlying exposures. In accordance with ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12), that ongoing assessment will be done qualitatively for highly effective relationships.

~~Net Investment Hedge~~

As a means of mitigating the ~~future~~ impact of currency fluctuations on our euro investments in foreign entities, we ~~enter into~~have executed cross currency swaps, in which we ~~generally~~ pay fixed-rate interest in euros and receive fixed-rate interest in U.S. dollars related to our future obligations to exchange euros for U.S. dollars. ~~In April and May 2022, we settled €1.0 billion of our existing~~These cross currency swaps and concurrently entered into €1.1 billion of new cross currency swaps, to align with our planned financing of the Dyneema Acquisition, receiving cash proceeds of $75.1 million. We currently have 11 cross currency swaps with a combined notional amount of €1.4 billion with maturities in 2023 and 2028. These effectively convert a portion of our U.S. dollar denominated fixed-rate debt to euro denominated fixed-rate debt. ~~Included~~

We currently hold cross currency swaps with a combined notional amount of €1,467.2 million, maturing in ~~Interest expense, net~~ ~~within the~~

~~11 AVIENT CORPORATION~~

~~Condensed Consolidated Statements of Income are gains of $7.0~~May 2025 and €900.0 million ~~and $12.6 million for the three and six months ended June 30, 2022, compared to gains of $3.5 million and $7.0 million for the three and six months ended June 30, 2021, respectively.~~

maturing in August 2027. We designated the cross currency swaps as net investment hedges of our net investment in our European operations under ASU 2017-12 and applied the spot method to these hedges. The changes in fair value of the derivative instruments that are designated and qualify as hedges of net investments in foreign operations are recognized within A~~ccumulated~~ Accumulated Other Comprehensive Income (AOCI) to offset the changes in the values of the net investment being hedged. For the three and six months ended June 30, ~~2022, gains~~2023, losses of ~~$45.2~~$28.2 million and ~~$52.0~~$57.7 million were recognized within translation adjustments in AOCI, net of tax, respectively, compared to a ~~loss~~gain of ~~$5.2~~$45.2 million and ~~a gain~~$52.0 million, net of ~~$17.7 million for the three and six months ended June 30, 2021, respectively.~~

~~Derivatives Designated as Cash Flow Hedging Instruments~~

In August 2018, we entered into 2 interest rate swaps with a combined notional amount of $150.0 million to manage the variability of cash flows in the interest rate payments associated with our existing LIBOR-based interest payments, effectively converting $150.0 million of our floating rate debt to a fixed rate. We began to receive floating rate interest payments based upon one-month U.S. dollar LIBOR and in return are obligated to pay interest at a fixed rate of 2.732% until November 2022. We have designated these interest rate swap contracts as cash flow hedges pursuant to ASC Topic 815, ~~Derivatives and Hedging~~. The net interest payments accrued are reflected in net income as adjustments of interest expense and the remaining change in the fair value of the derivatives is recorded as a component of AOCI. The amount of expense recognized within ~~Interest expense, net~~ ~~in our Condensed Consolidated Statements of Income was $0.6 million and $1.6 million~~tax, for the three and six months ended June 30, 2022, ~~compared to $1.0~~respectively. Net interest payments received reduce Interest expense, net within the Condensed Consolidated Statements of Income and resulted in interest income of $9.7 million and ~~$2.0~~$19.4 million, respectively, for the three and six months ended June 30, ~~2021. For the three and six months ended June 30, 2022, gains of $0.9~~2023, compared to $7.0 million and ~~$2.1 million, net of tax, were recognized in AOCI, compared to gains of $0.7 million $1.5 million for the three and six months ended June 30, 2021.~~

~~Derivatives Not Designated for Hedge Accounting~~

On April 20, 2022, we executed additional cross currency swaps, pursuant to which we will pay fixed-rate interest in euros and receive fixed-rate interest in U.S. dollars with a combined notional amount of €900 million, which mature in April 2028, as a means of mitigating the impact of currency fluctuations on our future euro investments in foreign entities related to the Dyneema Acquisition. Additionally, we entered into foreign currency forward contracts with an aggregate notional amount of €350 million, which are scheduled to mature within one year, to mitigate the impact of currency fluctuations on the euro-denominated Purchase Price for the Dyneema Acquisition. Changes in the fair value of the cross-currency swaps and foreign exchange forward contracts are recorded in earnings directly. The amount of income recognized within ~~Other income, net~~ ~~in our Condensed Consolidated Statements of Income was $0.9~~$12.6 million for the three and six months ended June 30, 2022.

All of our derivative assets and liabilities measured at fair value are classified as Level 2 within the fair value hierarchy. We determine the fair value of our derivatives based on valuation methods, which project future cash flows

12 AVIENT CORPORATION

and discount the future amounts to present value using market based observable inputs, including interest rate curves and foreign currency rates.

The fair value of derivative financial instruments recognized in the Condensed Consolidated Balance Sheets is as follows:

(In millions) Balance Sheet Location
As of
June 30, 2022
As of December 31, 2021
Assets
Cross Currency Swaps (Net Investment Hedge) Other current assets $ 22.6 $ —
Cross Currency Swaps (Net Investment Hedge) Other non-current assets 10.9 31.7
Mark-to-Market Cross Currency Swaps Other non-current assets 13.0 —
Liabilities
Interest Rate Swaps (Cash Flow Hedge) Other current liabilities $ 0.2 $ 3.1
Mark-to-Market Foreign Exchange Forwards Other current liabilities 12.1 —


(In millions)	Balance Sheet Location	As of June 30, 2023		As of December 31, 2022






Net investment hedge	Other non-current liabilities	$	146.7	$	68.6

~~12 AVIENT CORPORATION~~

~~Note 12 — SUBSEQUENT EVENTS~~

During July 2022, we settled €2.3 billion of our existing 2023 and 2025 cross-currency swaps and concurrently entered into €2.4 billion of new cross currency swaps, receiving cash proceeds of $65.6 million.

13 AVIENT CORPORATION

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Our Business

We are a premier ~~provider~~formulator of specialized and sustainable material solutions that transform customer challenges into opportunities, bringing new products to life for a better world. Our products include specialty engineered materials, performance fibers, advanced composites, and color and additive ~~systems and polymer distribution.~~systems. We are also a highly specialized developer and manufacturer of performance enhancing additives, liquid colorants and fluoropolymer and silicone colorants. Headquartered in Avon Lake, Ohio, we have ~~employees at sales,~~ manufacturing and ~~distribution facilities~~warehouses across the globe. We provide value to our customers through our ability to link our knowledge of polymers and formulation technology with our manufacturing and supply chain capabilities to provide value-added solutions to designers, assemblers and processors of plastics. When used in this Quarterly Report on Form 10-Q, the terms “we,” “us,” “our,” “Avient” and the “Company” mean Avient Corporation ~~formerly known as PolyOne Corporation,~~ and its consolidated subsidiaries.

Highlights and Executive Summary

~~A summary of Avient’s sales, operating income, net income and net income attributable to Avient common shareholders follows:~~

Three Months Ended
June 30, Six Months Ended
June 30,
(In millions) 2022 2021 2022 2021
Sales $ 1,302.4 $ 1,235.2 $ 2,596.2 $ 2,397.5
Operating income 129.5 108.1 258.1 228.5
Net income $ 84.7 $ 69.4 $ 169.2 $ 149.1
Net income attributable to Avient common shareholders $ 84.7 $ 68.8 $ 168.9 $ 148.1

Trends and Developments

~~COVID-19~~

We have continued to closely monitor the impact of the COVID-19 pandemic on all aspects of our business, including how it has impacted our employees, customers, supply chain and distribution network. Although we are unable to predict the ultimate impact of the COVID-19 outbreak, the pandemic has in the past adversely affected, and could in the future adversely affect our business. While we concluded there were no indicators of impairment as of June 30, 2022, any significant sustained adverse change in financial results or macroeconomic conditions could result in future impairments of long-lived assets. The extent to which our operations may continue to be impacted by the COVID-19 pandemic will depend largely on future developments, which are highly uncertain and cannot be accurately predicted, including new information which may emerge concerning the severity of the outbreak and actions by government authorities to contain the outbreak or treat its impact.

~~Dyneema~~APM Acquisition

Distribution business sale

On November 1, 2022, Avient sold its Distribution business to an affiliate of H.I.G. Capital for $950.0 million in cash, subject to a ~~private limited liability company organized under~~customary working capital adjustment. Total proceeds received were $935.5 million, of which $7.3 million was received in the ~~laws~~six months ended June 30, 2023. The results of the Netherlands, DSM Protective Materials B.V., a private limited liability company organized under the laws of the Netherlands, and DSM Protective Materials LLC, a Delaware limited liability company, and (b) certain other assets related to DSM's protective materialsDistribution business (including the Dyneema© Brand) (such equity and assets together, the Dyneema Business) (such acquisition of the Dyneema Business, the Dyneema Acquisition). Avient and DSM entered into the Purchase Agreement on June 23, 2022.are presented as discontinued operations for all periods presented.

Pursuant to the terms of the Purchase Agreement, we have agreed to acquire the Dyneema Business for an aggregate purchase price of €1.38 billion, subject to certain customary adjustments for a European “locked box” transaction (the Purchase Price). Certain Purchase Price payments are euro-denominated and are subject to change based on fluctuations in the euro-U.S. dollar exchange rate. The closing of the Dyneema Acquisition will be subject to the satisfaction or waiver of customary and other conditions. We have received all required regulatory approvals.

14 AVIENT CORPORATION

~~In conjunction with our intent to acquire the Dyneema Business, we are exploring a potential sale of our Distribution business.~~

~~Magna Colours Acquisition~~

On July 1, 2021, the Company completed its acquisition of Magna Colours Ltd. (Magna Colours), a market leader in sustainable, water-based inks technology for the textile screen printing industry, for the purchase price of $47.6 million, net of cash acquired. The results of the Magna Colours business are reported in the Color, Additives and Inks segment. The purchase price allocation resulted in intangible assets of $27.5 million and goodwill of $22.0 million, partially offset by net liabilities assumed. Goodwill is not deductible for tax purposes. The intangible assets that have been acquired are being amortized over a period of 10 to 20 years. Purchase accounting was finalized as of June 30, 2022.

Results of Operations — The three and six months ended June 30, ~~2022~~2023 compared to three and six months ended June 30, ~~2021:~~2022:


		Three Months Ended June 30,				Variances — Favorable (Unfavorable)				Six Months Ended June 30,				Variances — Favorable (Unfavorable)					Three Months Ended June 30,				Variances — Favorable (Unfavorable)				Six Months Ended June 30,				Variances — Favorable (Unfavorable)
(Dollars in millions, except per share data)	(Dollars in millions, except per share data)	2022		2021		Change		% Change		2022		2021		Change		% Change		(Dollars in millions, except per share data)	2023		2022		Change		% Change		2023		2022		Change		% Change
Sales	Sales	$	1,302.4	$	1,235.2	$	67.2	5	%	$	2,596.2	$	2,397.5	$	198.7	8	%	Sales	$	824.4	$	891.0	$	(66.6)	(7.5)	%	$	1,670.1	$	1,783.2	$	(113.1)	(6.3)	%
Cost of sales	Cost of sales	998.6		946.5		(52.1)		(6)	%	1,998.7		1,806.4		(192.3)		(11)	%	Cost of sales	583.7		630.1		46.4		7.4	%	1,181.8		1,267.9		86.1		6.8	%
Gross margin	Gross margin	303.8		288.7		15.1		5	%	597.5		591.1		6.4		1	%	Gross margin	240.7		260.9		(20.2)		(7.7)	%	488.3		515.3		(27.0)		(5.2)	%
Selling and administrative expense	Selling and administrative expense	174.3		180.6		6.3		3	%	339.4		362.6		23.2		6	%	Selling and administrative expense	178.4		160.8		(17.6)		(10.9)	%	368.9		313.0		(55.9)		(17.9)	%

Operating income	Operating income	129.5		108.1		21.4		20	%	258.1		228.5		29.6		13	%	Operating income	62.3		100.1		(37.8)		(37.8)	%	119.4		202.3		(82.9)		(41.0)	%
Interest expense, net	Interest expense, net	(16.2)		(19.5)		3.3		17	%	(33.1)		(38.8)		5.7		15	%	Interest expense, net	(29.4)		(16.2)		(13.2)		(81.5)	%	(58.2)		(33.1)		(25.1)		75.8	%

Other income, net		1.4		1.2		0.2		nm		0.8		2.7		(1.9)		nm
Income before income taxes		114.7		89.8		24.9		28	%	225.8		192.4		33.4		17	%
Other (expense) income, net																		Other (expense) income, net	(0.2)		1.6		(1.8)		nm		0.5		1.0		(0.5)		nm
Income from continuing operations before income taxes																		Income from continuing operations before income taxes	32.7		85.5		(52.8)		(61.8)	%	61.7		170.2		(108.5)		(63.7)	%
Income tax expense	Income tax expense	(30.0)		(20.4)		(9.6)		(47)	%	(56.6)		(43.3)		(13.3)		(31)	%	Income tax expense	(10.4)		(22.7)		12.3		54.2	%	(18.1)		(42.7)		24.6		nm

Net income from continuing operations																		Net income from continuing operations	22.3		62.8		(40.5)		(64.5)	%	43.6		127.5		(83.9)		(65.8)	%
(Loss) income from discontinued operations, net of income taxes																		(Loss) income from discontinued operations, net of income taxes	—		21.9		(21.9)		nm		(0.9)		41.7		(42.6)		nm
Net income	Net income	84.7		69.4		15.3		22	%	169.2		149.1		20.1		13	%	Net income	22.3		84.7		(62.4)		(73.7)	%	42.7		169.2		(126.5)		(74.8)	%
Net income attributable to noncontrolling interests	Net income attributable to noncontrolling interests	—		(0.6)		0.6		nm		(0.3)		(1.0)		0.7		nm		Net income attributable to noncontrolling interests	(0.2)		—		(0.2)		nm		(0.7)		(0.3)		(0.4)		nm
Net income attributable to Avient common shareholders	Net income attributable to Avient common shareholders	$	84.7	$	68.8	$	15.9	23	%	$	168.9	$	148.1	$	20.8	14	%	Net income attributable to Avient common shareholders	$	22.1	$	84.7	$	(62.6)	(73.9)	%	$	42.0	$	168.9	$	(126.9)	nm

Earnings per share attributable to Avient common shareholders - Basic		$	0.93	$	0.75					$	1.85	$	1.62

Earnings (loss) per share attributable to Avient common shareholders - Basic																		Earnings (loss) per share attributable to Avient common shareholders - Basic
Continuing operations																		Continuing operations	$	0.24	$	0.69					$	0.47	$	1.39
Discontinued operations																		Discontinued operations	—		0.24						(0.01)		0.46
Total																		Total	$	0.24	$	0.93					$	0.46	$	1.85

Earnings (loss) per share attributable to Avient common shareholders - Diluted	Earnings (loss) per share attributable to Avient common shareholders - Diluted	$	0.92	$	0.74					$	1.83	$	1.60					Earnings (loss) per share attributable to Avient common shareholders - Diluted

Continuing operations																		Continuing operations	$	0.24	$	0.68					$	0.47	$	1.38
Discontinued operations																		Discontinued operations	—		0.24						(0.01)		0.45
Total																		Total	$	0.24	$	0.92					$	0.46	$	1.83

nm - not meaningful

Sales

Sales ~~increased $67.2~~decreased $66.6 million, ~~and $198.7 million~~or 7.5%, in the three months ended June 30, 2023 compared to the three months ended June 30, 2022. The APM Acquisition increased sales by 10.9%, which was more than offset by impacts of lower global demand and customer destocking, while unfavorable foreign exchange rates had a 1.0% impact. Sales decreased $113.1 million, or 6.3%, in the six months ended June 30, ~~2022, respectively,~~2023 compared to the ~~three and~~ six months ended June 30, ~~2021 as a result of growth in the healthcare and consumer end markets, certain composite applications, and price increases associated with raw material inflation. These increases were partially~~2022. The APM Acquisition increased sales by 10.9%, which was more than offset by ~~decreased~~the impacts of lower global demand ~~in China as a result of the recent COVID-19 lockdowns as well as weaker~~and customer destocking, while unfavorable foreign exchange rates ~~primarily from the euro.~~had a 2.3% impact.

Cost of sales

As a percent of sales, cost of sales increased ~~slightly~~ from ~~76.6%~~70.7% to ~~76.7%~~70.8% in the three months ended June 30, ~~2021~~2022 to June 30, ~~2022.~~2023, as the benefit of mix and raw material deflation was more than offset by increased environmental remediation costs. Cost of sales as a percent of sales ~~increased~~decreased from ~~75.3%~~71.1% to ~~77.0%~~70.8% in the six months ended June 30, ~~2021~~2022 to June 30, ~~2022,~~2023, primarily as a result of ~~cost inflation.~~mix along with raw material deflation, partially offset by increased environmental remediation costs.

~~Selling and administrative expense~~

Selling and administrative expense decreased $6.3 million and $23.2 million during the three and six months ended June 30, 2022, respectively, compared to the three and six months ended June 30, 2021, driven primarily by weaker foreign exchange rates and lower incentive accruals.

15 AVIENT CORPORATION

~~Interest~~Selling and administrative expense ~~net~~

~~Interest~~Selling and administrative expense ~~net decreased $3.3~~increased $17.6 million and ~~$5.7~~$55.9 million induring the three and six months ended June 30, ~~2022,~~2023, respectively, compared to the three and six months ended June 30, ~~2021 due~~2022, primarily driven by the APM Acquisition along with higher restructuring charges.

Interest expense, net

Interest expense, net increased $13.2 million and $25.1 million in the three and six months ended June 30, 2023, respectively, compared to ~~additional cross currency swaps (See Note 11,~~ ~~Derivatives~~the three and ~~Hedging~~ ~~for details).~~six months ended June 30, 2022, related to new debt incurred to finance the APM Acquisition and the impact of higher interest rates on our variable term debt.

Income taxes

During the three and six months ended June 30, ~~2022,~~2023, the Company’s effective tax rate was ~~26.1%~~31.8% and ~~25.0%~~29.3%, respectively, ~~compared to 22.6%~~versus 26.6% and ~~22.5%~~25.1%, respectively, for the three and six months ended June 30, ~~2021, respectively.~~2022. The income tax rate increase is primarily due to the higher tax expense associated with valuation allowances, tax on global intangible low-taxed income (GILTI) ~~tax in 2022 compared to 2021~~, and a higher rate effect of foreign withholding tax. This increase was partially offset by a more favorable ~~impact from foreign~~international tax rate ~~change for the three~~differential, lower state taxes, and ~~six months ended June 30, 2021 not repeated in 2022.~~higher rate effect of U.S. research and development credits.

SEGMENT INFORMATION

Avient has ~~three~~two reportable segments: (1) Color, Additives and Inks; and (2) Specialty Engineered ~~Materials;~~Materials. As a result of the agreement to divest the Distribution business segment, we have removed Distribution as a separate reportable segment and ~~(3) Distribution.~~ its results are presented as a discontinued operation. Historical information has been retrospectively adjusted to reflect these changes.

Operating income is the primary measure that is reported to our chief operating decision maker (CODM) for purposes of allocating resources to the segments and assessing their performance. Operating income at the segment level does not include: corporate general and administrative expenses that are not allocated to segments; intersegment sales and profit eliminations; charges related to specific strategic initiatives such as the consolidation of operations; restructuring activities, including employee separation costs resulting from personnel reduction programs, plant closure and phase-in costs; executive separation agreements; share-based compensation costs; asset impairments; environmental remediation costs, along with related gains from insurance recoveries, and other liabilities for facilities no longer owned or closed in prior years; ~~gains and losses on the divestiture of joint ventures and equity investments;~~ actuarial gains and losses associated with our pension and other post-retirement benefit plans; and certain other items that are not included in the measure of segment profit or loss that is reported to and reviewed by our CODM. These costs are included in ~~Corporate and eliminations.~~

Corporate.

Sales and Operating Income — The three and six months ended June 30, ~~2022~~2023 compared to the three and six months ended June 30, ~~2021~~2022:


		Three Months Ended June 30,						Variances — Favorable (Unfavorable)				Six Months Ended June 30,						Variances — Favorable (Unfavorable)					Three Months Ended June 30,				Variances — Favorable (Unfavorable)				Six Months Ended June 30,				Variances — Favorable (Unfavorable)
(Dollars in millions)	(Dollars in millions)	2022			2021			Change		% Change		2022			2021			Change		% Change		(Dollars in millions)	2023		2022		Change		% Change		2023		2022		Change		% Change
Sales:	Sales:																					Sales:
Color, Additives and Inks	Color, Additives and Inks	$	649.1		$	624.4		$	24.7	4	%	$	1,298.6		$	1,233.7		$	64.9	5	%	Color, Additives and Inks	$	524.5	$	649.1	$	(124.6)	(19.2)	%	$	1,061.5	$	1,298.6	$	(237.1)	(18.3)	%
Specialty Engineered Materials	Specialty Engineered Materials	243.9			240.6			3.3		1	%	488.6			457.1			31.5		7	%	Specialty Engineered Materials	300.8		242.3		58.5		24.1	%	610.5		485.4		125.1		25.8	%
Distribution		443.2			404.4			38.8		10	%	876.1			767.1			109.0		14	%
Corporate and eliminations		(33.8)			(34.2)			0.4		1	%	(67.1)			(60.4)			(6.7)		(11)	%

Corporate																						Corporate	(0.9)		(0.4)		(0.5)		(125.0)	%	(1.9)		(0.8)		(1.1)		137.5	%
Total Sales	Total Sales	$	1,302.4		$	1,235.2		$	67.2	5	%	$	2,596.2		$	2,397.5		$	198.7	8	%	Total Sales	$	824.4	$	891.0	$	(66.6)	(7.5)	%	$	1,670.1	$	1,783.2	$	(113.1)	(6.3)	%

Operating income:	Operating income:																					Operating income:
Color, Additives and Inks	Color, Additives and Inks	$	93.6		$	86.3		$	7.3	8	%	$	188.1		$	175.1		$	13.0	7	%	Color, Additives and Inks	$	68.0	$	93.6	$	(25.6)	(27.4)	%	$	133.6	$	188.1	$	(54.5)	(29.0)	%
Specialty Engineered Materials	Specialty Engineered Materials	36.6			37.3			(0.7)		(2)	%	76.3			71.5			4.8		7	%	Specialty Engineered Materials	39.7		35.2		4.5		12.8	%	82.8		73.5		9.3		12.7	%
Distribution		27.1			23.7			3.4		14	%	51.3			47.7			3.6		8	%
Corporate and eliminations		(27.8)			(39.2)			11.4		29	%	(57.6)			(65.8)			8.2		12	%

Corporate																						Corporate	(45.4)		(28.7)		(16.7)		(58.2)	%	(97.0)		(59.3)		(37.7)		63.6	%
Total Operating Income	Total Operating Income	$	129.5		$	108.1		$	21.4	20	%	$	258.1		$	228.5		$	29.6	13	%	Total Operating Income	$	62.3	$	100.1	$	(37.8)	(37.8)	%	$	119.4	$	202.3	$	(82.9)	(41.0)	%

Operating income as a percentage of sales:
Color, Additives and Inks		14.4		%	13.8		%	0.6		% points		14.5		%	14.2		%	0.3		% points
Specialty Engineered Materials		15.0		%	15.5		%	(0.5)		% points		15.6		%	15.6		%	—		% points
Distribution		6.1		%	5.9		%	0.2		% points		5.9		%	6.2		%	(0.3)		% points
Total		9.9		%	8.8		%	1.1		% points		9.9		%	9.5		%	0.4		% points

Color, Additives and Inks

Sales ~~increased $24.7~~decreased $124.6 million, or 19.2%, and ~~$64.9~~$237.1 million, or 18.3%, in the three and six months ended June 30, ~~2022~~2023, respectively, compared to the three and six months ended June 30, ~~2021 due to higher selling prices across all regions~~2022, primarily driven by global demand and ~~end markets.~~customer destocking.

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Healthcare growth in the Americas offset sales declines associated with the COVID-19 shutdown in China and the ongoing war in Ukraine. Additionally, unfavorable foreign exchange rates also reduced sales.

Operating income ~~increased $7.3~~decreased $25.6 million and ~~$13.0~~$54.5 million in the three and six months ended June 30, ~~2022~~2023, respectively, compared to the three and six months ended June 30, ~~2021, respectively. The operating income growth was~~2022 driven primarily by the impacts of the aforementioned ~~sales growth,~~ lower ~~selling, general~~global demand and ~~administrative expenses driven by synergies from acquisitions and lower incentives. These benefits more than offset weaker foreign exchange rates and cost inflation.~~customer destocking.

Specialty Engineered Materials

Sales increased ~~$3.3~~$58.5 million, or 24.1%, in the three months ended June 30, 2023 compared to the three months ended June 30, 2022. The APM Acquisition increased sales by 40.2%, which was partially offset by the impacts of lower global demand and customer destocking. Sales increased $125.1 million, or 25.8%, in the six months ended June 30, 2023 compared to the six months ended June 30, 2022. The APM Acquisition increased sales by 39.9%, which was partially offset by the impacts of lower global demand and customer destocking.

Operating income increased $4.5 million and ~~$31.5~~$9.3 million in the three and six months ended June 30, ~~2022~~2023, respectively, compared to the three and six months ended June 30, ~~2021. Higher selling prices associated with raw material inflation and growth in composite applications more than~~2022, due to the APM Acquisition partially offset ~~weaker foreign exchange rates along with~~by lower demand ~~in China~~ and ~~certain outdoor high performance applications.~~customer destocking.

~~Operating income was down slightly as higher pricing offset the impact of unfavorable mix, and higher cost inflation~~Corporate

Corporate costs increased $16.7 million in the three months ended June 30, 2023, driven by $10.0 million higher environmental remediation costs in 2023. Further, in 2022 ~~as compared to the three months ended June 30, 2021. Operating income~~we received insurance recoveries of $7.6 million while no recoveries were received in 2023. Corporate costs increased ~~$4.8~~$37.7 million in the six months ended June 30, ~~2022 as compared to the six months ended June 30, 2021 due to aforementioned sales increases from higher selling prices and growth in composite applications.~~

~~Distribution~~

~~Sales increased $38.8 million and $109.0 million in the three and six months ended June 30, 2022 as compared to the three and six months ended June 30, 2021, respectively,~~2023 driven by ~~increased average selling prices.~~

~~Operating income increased $3.4 million and $3.6 million in the three and six months ended June 30, 2022 compared to the three and six months ended June 30, 2021, respectively, due to~~ higher ~~selling prices.~~

~~Corporate and Eliminations~~

~~Costs decreased $11.4 million, or 29%, and $8.2 million, or 12% in the three and six months ended June 30, 2022 as compared to the three and six months ended June 30, 2021 due to lower~~ environmental ~~remediation~~ costs and ~~higher~~timing of insurance recoveries ~~on previously incurred environmental costs,~~ as well as ~~lower incentive accruals.~~$11.3 million of higher restructuring charges.

As noted in Footnote 11 – Commitments and Contingencies, as a result of the ongoing remedial design activities at Calvert City, in the third quarter of 2023, we expect to receive construction proposals for a portion of the site remedy, which are expected to further aid in remedial design and our assessment of projected costs. Information contained in the proposals will be assessed against our accrual assumptions when received and may have a material impact to our Condensed Consolidated Statement of Income.

Liquidity and Capital Resources

Our objective is to finance our business through operating cash flow and an appropriate mix of debt and equity. By laddering the maturity structure, we avoid concentrations of debt maturities, reducing liquidity risk. We may from time to time seek to retire or purchase our outstanding debt with cash and/or exchanges for equity securities, in open market purchases, privately negotiated transactions or otherwise. We may also seek to repurchase our outstanding common shares. Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved have been and may continue to be material.

The following table summarizes our liquidity as of June 30, ~~2022~~2023 and December 31, ~~2021:~~2022:


(In millions)	(In millions)	As of June 30, 2022		As of December 31, 2021		(In millions)	As of June 30, 2023		As of December 31, 2022
Cash and cash equivalents	Cash and cash equivalents	$	645.1	$	601.2	Cash and cash equivalents	$	528.7	$	641.1
Revolving credit availability	Revolving credit availability	487.1		485.5		Revolving credit availability	226.6		246.2
Liquidity	Liquidity	$	1,132.2	$	1,086.7	Liquidity	$	755.3	$	887.3

As of June 30, ~~2022,~~2023, approximately ~~69%~~66% of the Company’s cash and cash equivalents resided outside the United States.

In connection with the Dyneema Acquisition, on April 19, 2022, we entered into a Commitment Letter with Morgan Stanley Senior Funding, Inc. and J.P. Morgan (the Commitment Parties), pursuant to which the Commitment Parties committed to providing us with a $640.0 million senior secured term loan facility and a $900.0 million senior unsecured bridge loan (the Bridge Facility) for purposes of funding the Dyneema Acquisition. The commitment is subject to various conditions, including the execution of definitive documentation and other customary closing conditions. We currently intend to issue new senior long-term debt in lieu of borrowing under the Bridge Facility.

Expected sources of cash needed to satisfy cash requirements for ~~the remainder of 2022 outside of the Dyneema Acquisition~~2023 include our cash on hand, cash from operations and available liquidity under our revolving credit facility, if ~~needed. Outside of the Dyneema Acquisition,~~needed, and we believe that these sources will provide sufficient liquidity to satisfy our expected uses of cash for at least the ~~remainder~~next twelve months and the foreseeable future thereafter. Expected uses of ~~2022~~cash for 2023 include interest

~~17 AVIENT CORPORATION~~

payments, cash taxes, dividend payments, share repurchases, environmental remediation costs and capital ~~expenditures, and repayment of debt.~~expenditures.

Cash Flows

The following describes the significant components of cash flows from operating, investing and financing activities for the six months ended June 30, ~~2022~~2023 and ~~2021.~~2022.

Operating Activities — In the six months ended June 30, ~~2022,~~2023, net cash used by operating activities was $24.7 million as compared to net cash provided by operating activities ~~was~~of $106.7 ~~million as compared to $68.1~~ million for the six months ended June 30, ~~2021,~~2022, driven primarily by ~~increased~~lower earnings and ~~lower comparative investment in working capital.~~taxes paid associated with the sale of the Distribution business.

17 AVIENT CORPORATION

Investing Activities — Net cash used by investing activities during the six months ended June 30, 2023 of $38.6 million reflects the impact of capital expenditures, offset by $7.3 million of proceeds received from the divestiture of the Distribution business.

Net cash provided by investing activities during the six months ended June 30, 2022 of $41.1 million reflects ~~$75.1 million associated with the settlement~~settlements of cross-currency swaps of $75.1 million partially offset by capital ~~expenditures.~~

~~Net cash used by investing activities during the six months ended June 30, 2021~~expenditures of ~~$44.1 million primarily reflects capital expenditures.~~$34.0 million.

Financing Activities — Net cash used by financing activities for the six months ended June 30, ~~2022~~2023 of ~~$88.4~~$48.3 million primarily reflects ~~$43.5~~$45.0 million of dividends ~~paid and repurchases of our outstanding common shares of $36.4 million.~~paid.

Net cash used by financing activities for the six months ended June 30, ~~2021~~2022 of ~~$51.6~~$88.4 million ~~primarily~~ reflects ~~$38.8~~$43.5 million of dividends paid, ~~repurchases~~repayment of debt of $4.4 million, and repurchase of our outstanding common shares of ~~$4.2~~$36.4 million.

Debt

As of June 30, ~~2022,~~2023, our principal amount of debt totaled ~~$1,868.8~~$2,215.3 million. Aggregate maturities of the principal amount of debt for the current year, next four years and thereafter, are as follows:

(In millions)
2022 $ 4.1
2023 608.6
2024 8.6
2025 658.7
2026 6.9
Thereafter 581.9
Aggregate maturities $ 1,868.8


(In millions)
2023	$	1.4
2024	2.2
2025	652.2
2026	427.4
2027	0.4
Thereafter	1,131.7
Aggregate maturities	$	2,215.3

As of June 30, ~~2022,~~2023, we were in compliance with all financial and restrictive covenants pertaining to our debt. For additional information regarding our debt, please see Note 8,9, Financing Arrangements to the accompanying condensed consolidated financial statements.

Derivatives and Hedging

We are exposed to market risks, such as changes in foreign currency exchange rates and interest rates. To manage the volatility related to these exposures we may enter into various derivative transactions. For additional information regarding our derivative instruments, please see Note ~~11,~~12, Derivatives and Hedging to the accompanying condensed consolidated financial statements.

Material Cash Requirements

We have future obligations under various contracts relating to debt and interest payments, derivative instruments, operating leases, pension and post-retirement benefit plans and purchase obligations. During the six months ended June 30, ~~2022,~~2023, there were no material changes to these obligations as reported in our Annual Report on Form 10-K for the year ended December 31, ~~2021.~~2022.

18 AVIENT CORPORATION

CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS

In this Quarterly Report on Form 10-Q, statements that are not reported financial results or other historical information are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events and are not guarantees of future performance. They are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. You can identify these statements by the fact that they do not relate strictly to historic or current facts. They use words such as "will," “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe” and other words and terms of similar meaning in connection with any discussion of future operating or financial condition, performance and/or sales. In particular, these include statements relating to future actions; prospective changes in raw material costs, product pricing or product demand; future performance; estimated capital expenditures; results of current and anticipated market conditions and market strategies; sales efforts; expenses; the outcome of contingencies such as legal proceedings and environmental liabilities; and financial results. Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:

•disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future;

•the effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory ~~risks, including recessionary conditions;~~risks;

•the current and potential future impact of the COVID-19 pandemic on our business, results of operations, financial position or cash flows, including without limitation, any supply chain and logistics issues;

•changes in ~~polymer consumption growth rates and~~ laws and regulations regarding plastics in jurisdictions where we conduct business;

•fluctuations in raw material prices, quality and supply, and in energy prices and supply;

•production outages or material costs associated with scheduled or unscheduled maintenance programs;

•unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters;

•an inability to raise or sustain prices for products or services;

•our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends;

•information systems failures and cyberattacks;

•amounts for cash and non-cash charges related to restructuring plans that may differ from original estimates, including because of timing changes associated with the underlying actions;

•~~any material adverse changes in the Dyneema Business;~~

•our ability to achieve strategic objectives and successfully integrate acquisitions, including APM;

•other factors affecting our business beyond our control, including without limitation, changes in the ~~strategic~~general economy, changes in interest rates, changes in the rate of inflation and ~~other objectives relating to the Dyneema Acquisition and the possible sale of the Distribution business segment;~~any recessionary conditions; and

•other factors described in our Annual Report on Form 10-K for the year ended December 31, ~~2021~~2022 under Item 1A, “Risk Factors.”

We cannot guarantee that any forward-looking statement will be realized, although we believe we have been prudent in our plans and assumptions. Achievement of future results is subject to risks, uncertainties and assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Investors should bear this in mind as they consider forward-looking statements. We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law. You are advised, however, to consult any further disclosures we make on related subjects in our reports on Forms 10-Q, 8-K and 10-K filed with the Securities and Exchange Commission. You should understand that it is not possible to predict or identify all risk factors. Consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes to exposures to market risk as reported in our Annual Report on Form 10-K for the year ended December 31, ~~2021.~~2022.

19 AVIENT CORPORATION

ITEM 4. CONTROLS AND PROCEDURES

Disclosure controls and procedures

Avient’s management, under the supervision of and with the participation of its Chief Executive Officer and its Chief Financial Officer, has evaluated the effectiveness of the design and operation of Avient’s disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as of the end of the period covered by this Quarterly Report. Based upon this evaluation, Avient’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this Quarterly Report, its disclosure controls and procedures were effective.

Changes in internal control over financial reporting

There were no changes in Avient’s internal control over financial reporting during the quarter ended June 30, ~~2022~~2023 that materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Information regarding certain legal proceedings can be found in Note ~~10,~~11, Commitments and Contingencies to the accompanying condensed consolidated financial statements and is incorporated by reference herein.

ITEM 1A. RISK FACTORS

~~The disclosure below modifies the~~We face a number of risks that could adversely affect our business, results of operations, financial position or cash flows. A discussion of our risk factors ~~previously disclosed~~can be found in Item 1A, Risk factors, in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2021~~2022 and our subsequent Quarterly ~~Report~~Reports on Form 10-Q for the ~~quarterly~~ period ended March 31, ~~2022. These risks, along with those~~2023. During the six months ended June 30, 2023, there were no material changes to our previously disclosed ~~could adversely affect our business, results of operations, financial position or cash flows.~~

~~Dyneema Acquisition Risks~~

~~We may experience difficulties integrating the Dyneema Business.~~

There can be no assurance that we will successfully or cost-effectively integrate the Dyneema Business. The failure to do so could have an adverse effect on our business, financial condition, results of operations and cash flow.

~~We will incur additional debt to complete the Dyneema Acquisition. Our ability to generate cash to service this debt depends on many factors beyond our control.~~

~~At June 30, 2022, we had total debt of approximately $1,868.8 million. We expect to incur approximately $1.2 billion of debt to complete the Dyneema Acquisition.~~

Our ability to make payments on our debt, fund our other liquidity needs, and make planned capital expenditures will depend on our ability to generate cash in the future. A significant portion of our operations are conducted by our subsidiaries. Our cash flows and our ability to service our indebtedness, including our ability to pay the interest on and principal of our debt when due, may be dependent upon cash dividends and other distributions or other transfers from our subsidiaries. Our ability to generate cash, to a certain extent, is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond our control.

~~The degree to which we are currently leveraged and will be leveraged following the consummation of the Dyneema Acquisition could have important consequences for shareholders.~~

~~Global Operating Risks~~

~~Higher energy costs worldwide, including as a result of the ongoing conflict between Russia and Ukraine, could adversely impact our results of operations.~~

Our results of operations can be directly affected, positively and negatively, by volatility in the cost and availability of energy, which is subject to global supply and demand and other factors beyond our control. The ongoing conflict between Russia and Ukraine has impacted global energy markets, particularly in Europe, leading to high volatility and increasing prices for crude oil, natural gas and other energy supplies. In the event that the supply of natural gas from Russia stops or is significantly reduced, there may be supply disruptions, increased prices, temporary

~~20 AVIENT CORPORATION~~

shutdowns or closures of our manufacturing facilities, or further rationing of energy supply within countries where we do business, which could have a material adverse impact on our business or results of operations in those countries. While we have developed contingency plans to flex and shift production in the case of temporary shutdowns or closures of our manufacturing facilities, we may be unable to shift all impacted operations to alternatives sites.

risk factors.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The table below sets forth information regarding the repurchase of shares of our common shares during the period indicated.

Period Total Number of Shares Purchased Weighted Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Program
Maximum Number of Shares that May Yet be Purchased Under the Program (1)
April 1 to April 30 — $ — — 5,457,472
May 1 to May 31 — — — 5,457,472
June 1 to June 30 500,000 41.24 500,000 4,957,472
Total 500,000 $ 41.24 500,000


Period	Total Number of Shares Purchased	Weighted Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Program	Maximum Number of Shares that May Yet be Purchased Under the Program (1)
April 1 to April 30	—	$	—	—	4,957,472
May 1 to May 31	—	—		—	4,957,472
June 1 to June 30	—	—		—	4,957,472
Total	—	$	—	—

(1) Our Board of Directors approved a common share repurchase program authorizing Avient to purchase its common shares in August 2008, which share repurchase authorization has been subsequently increased from time to time. On December 9, 2020, we announced that we would increase our share buyback by an additional 55.0 million shares. As of June 30, ~~2022,~~2023, approximately 5.0 million shares remained available for purchase under these authorizations, which have no expiration. Purchases of common shares may be made by open market purchases or privately negotiated transactions and may be made pursuant to Rule 10b5-1 plans and accelerated share repurchases.

ITEM 5.OTHER INFORMATION

Trading Arrangements

None of the Company's directors or officers (as defined in Rule 16a-1(f) promulgated under the Securities Exchange Act of 1934) adopted, modified, or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K, during the Company's fiscal quarter ended June 30, 2023.

Amended and Restated Regulations

On May 11, 2023, the Company’s Board of Directors approved the amendment and restatement of the Avient Corporation Regulations, effective as of such date (the Amended and Restated Regulations). The Amended and

20 AVIENT CORPORATION

Restated Regulations include certain changes to the procedures by which shareholders may recommend nominees to the Company’s Board of Directors, among other updates, including to:

•provide that shareholders must give advance notice to the Company of nominations to be brought before an annual meeting of not less than 90 nor more than 120 calendar days prior to the first anniversary of the date on which the Company first mailed its proxy materials for the preceding year’s annual meeting of shareholders;

•require a shareholder to appear at the meeting to present its nomination;

•address matters relating to Rule 14a-19 under the Securities Exchange Act of 1934 (the Universal Proxy Rule) including requiring that any shareholder submitting a nomination notice make a representation as to whether such shareholder intends to solicit proxies in support of director nominees other than the Company’s nominees in accordance with the Universal Proxy Rule; and

•require a shareholder’s nomination notice to include a completed questionnaire with respect to the identity, background and qualification of the proposed nominee and the background of any other person or entity on whose behalf the nomination is being made.

21 AVIENT CORPORATION

ITEM 6. EXHIBITS

EXHIBIT INDEX


Exhibit No.						Exhibit Description

~~2.1~~†						Signing Protocol between Avient Corporation and Koninklijke DSM N.V., dated April 19, 2022 (including the final form of Sale and Purchase Agreement between Avient Corporation and Koninklijke DSM N.V. as Annex A)~~(incorporated by reference to Exhibit 2.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022, SEC File No. 1-16091)~~

2.2 †						Sale and Purchase Agreement of the DSM Protective Materials Business, by and among Koninklijke DSM N.V., Avient Corporation and, solely for the purposes of Clause 2.1 and Clause 2.2, Fiber-Line International B.V., dated June 23, 2022 (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed on June 24, 2022, SEC File No. 1-16091)

3.1						Amended and Restated Articles of Incorporation of Avient Corporation (as amended through June 30, 2020) (incorporated by reference to Exhibit 3.1 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, SEC File No. 1-16091)

3.2						~~Amended~~Avient Corporation Regulations (amended and ~~Restated Code of Regulations,~~restated effective ~~June 30, 2020~~May 11, 2023) (incorporated by reference to Exhibit ~~3.2~~3.1 to the Company's ~~Annual~~Current Report on Form ~~10-K for the fiscal year ended December 31, 2020,~~8-K, filed May 16, 2023, SEC File No. 1-16091)

10.1†						Second Amendment to Third Amended and Restated Credit Agreement, dated as of April 3, 2023, by and among the lenders party thereto, Wells Fargo Capital Finance, LLC, as administrative agent for the lenders, Avient Corporation, NEU Specialty Engineered Materials, LLC, Avient Canada ULC, and Avient S.a.r.l (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023, SEC File No.1-16091).

10.2†						Avient Corporation 2020 Equity and Incentive Compensation Plan (Amended and Restated Effective May 11, 2023) (incorporated by reference to Appendix B to the Registrant’s Definitive Proxy Statement on Schedule 14A, filed March 29, 2023, SEC File No. 001-16091)

31.1						Certification of Robert M. Patterson, Chairman, President and Chief Executive Officer, pursuant to SEC Rules 13a-14(a) and 15d-14(a), adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2						Certification of Jamie A. Beggs, Senior Vice President and Chief Financial Officer, pursuant to SEC Rules 13a-14(a) and 15d-14(a), adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1						Certification pursuant to 18 U.S.C. § 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as signed by Robert M. Patterson, Chairman, President and Chief Executive Officer

32.2						Certification pursuant to 18 U.S.C. § 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as signed by Jamie A. Beggs, Senior Vice President and Chief Financial Officer

101.INS						Inline XBRL Instance 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						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

†						Certain exhibits and schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K and will be provided to the Securities and Exchange Commission upon request.

22 AVIENT CORPORATION

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



July ~~26, 2022~~27, 2023			AVIENT CORPORATION

			/s/ Jamie A. Beggs
			Jamie A. Beggs Senior Vice President and Chief Financial Officer

23 AVIENT CORPORATION


(In millions)	Balance Sheet Location	As of June 30, 2022		As of December 31, 2021
Assets
Cross Currency Swaps (Net Investment Hedge)	Other current assets	$	22.6	$	—
Cross Currency Swaps (Net Investment Hedge)	Other non-current assets	10.9		31.7
Mark-to-Market Cross Currency Swaps	Other non-current assets	13.0		—
Liabilities
Interest Rate Swaps (Cash Flow Hedge)	Other current liabilities	$	0.2	$	3.1
Mark-to-Market Foreign Exchange Forwards	Other current liabilities	12.1		—