(Mark One)
| ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||
2021
| ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
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(Addresses of registrant’s principal executive offices)
| Netherlands | 98-0646235 | ||||||||||||||||||||||||||||
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||||||||||||||||||||
| 1221 McKinney St., | 4th Floor, One Vine Street | ||||||||||||||||||||||||||||||||||
| Suite 300 | London | Delftseplein 27E | |||||||||||||||||||||||||||||||||
| Houston, | Texas | W1J0AH | 3013AA | Rotterdam | |||||||||||||||||||||||||||||||
| USA | 77010 | United Kingdom | Netherlands | ||||||||||||||||||||||||||||||||
| (713) | 309-7200 | +44 (0) | 207 | 220 2600 | +31 (0) | 10 | 2755 500 | ||||||||||||||||||||||||||||||||||||||||||||||
| Title of Each Class | Trading Symbol | Name of Each Exchange On Which Registered | ||||||||||||
| Ordinary Shares, €0.04 Par Value | LYB | New York Stock Exchange | ||||||||||||
| Large accelerated filer | x | Accelerated filer | ☐ | |||||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||
| Emerging growth company | ☐ | |||||||||||||
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☒ No ☐
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Millions of dollars, except earnings per share Sales and other operating revenues: Trade Related parties Operating costs and expenses: Cost of sales Selling, general and administrative expenses Research and development expenses Operating income Interest expense Interest income Other income, net Income from continuing operations before equity investments and income taxes Income from equity investments Income from continuing operations before income taxes Provision for income taxes Income from continuing operations Loss from discontinued operations, net of tax Net income Net (income) loss attributable to non-controlling interests Net income attributable to the Company shareholders Earnings per share: Net income (loss) attributable to the Company shareholders — Basic: Continuing operations Discontinued operations Diluted: Continuing operations Discontinued operations Millions of dollars Net income Other comprehensive income (loss), net of tax – Financial derivatives: Loss on cash flow hedges arising during the period Reclassification adjustment included in net income Income tax benefit Financial derivatives, net of tax Unrealized gains (losses) on available-for-sale securities: Unrealized holding gains (losses) arising during the period Income tax benefit Unrealized gains (losses) on available-for-sale securities, net of tax Unrealized gains on available-for-sale securities held by equity investees: Unrealized holding gains arising during the period Income tax expense (benefit) Unrealized gains on available-for-sale securities held by equity investees, net of tax Defined pension and other postretirement benefit plans: Reclassification adjustment for amortization of prior service cost included in net income Reclassification adjustment for net actuarial loss included in net income Income tax expense Defined pension and other postretirement benefit plans, net of tax Foreign currency translation adjustments: Unrealized gains arising during the period Reclassification adjustment included in net income Income tax benefit Foreign currency translation adjustments, net of tax Total other comprehensive income (loss) Comprehensive income Comprehensive (income) loss attributable to non-controlling interests Comprehensive income attributable to the Company shareholders Millions of dollars ASSETS Current assets: Cash and cash equivalents Restricted cash Short-term investments Accounts receivable: Trade, net Related parties Inventories Prepaid expenses and other current assets Total current assets Property, plant and equipment at cost Less: Accumulated depreciation Property, plant and equipment, net Investments and long-term receivables: Investment in PO joint ventures Equity investments Other investments and long-term receivables Goodwill Intangible assets, net Other assets Total assets Millions of dollars, except shares and par value data LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt Short-term debt Accounts payable: Trade Related parties Accrued liabilities Total current liabilities Long-term debt Other liabilities Deferred income taxes Commitments and contingencies Stockholders’ equity: Ordinary shares, €0.04 par value, 1,275 million shares authorized, 394,458,141 and 404,046,331 shares outstanding, respectively Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock, at cost, 183,982,022 and 174,389,139 ordinary shares, respectively Total Company share of stockholders’ equity Non-controlling interests Total equity Total liabilities and equity Millions of dollars Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Amortization of debt-related costs Charges related to repayment of debt Equity investments – Equity income Distributions of earnings, net of tax Deferred income taxes Gain on sales of business and equity method investments Gain on sale of assets Changes in assets and liabilities that provided (used) cash: Accounts receivable Inventories Accounts payable Other, net Net cash provided by operating activities Cash flows from investing activities: Expenditures for property, plant and equipment Proceeds from disposal of assets Payments for repurchase agreements Proceeds from repurchase agreements Purchases of available-for-sale securities Proceeds from maturities of available-for-sale securities Purchases of held-to-maturity securities Proceeds from maturities of held-to-maturity securities Purchases of business, equity method investment and non-controlling interest Net proceeds from sale of business and equity method investments Proceeds from settlement of net investment hedges Payments for settlement of net investment hedges Other, net Net cash used in investing activities Millions of dollars Cash flows from financing activities: Repurchases of Company ordinary shares Dividends paid Issuance of long-term debt Repayment of long-term debt Debt extinguishment costs Net proceeds from (repayments of) commercial paper Payments of debt issuance costs Other, net Net cash used in financing activities Effect of exchange rate changes on cash Increase (decrease) in cash and cash equivalents and restricted cash Cash and cash equivalents and restricted cash at beginning of period Cash and cash equivalents and restricted cash at end of period SHAREHOLDERS’ EQUITY Ordinary Shares Millions of dollars Balance, December 31, 2016 Net income (loss) Other comprehensive income Share-based compensation Dividends ($2.65 per share) Repurchases of Company ordinary shares Purchase of non-controlling interest Balance, September 30, 2017 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 2020. In the opinion of management, all adjustments, including normal recurring adjustments, considered necessary for a fair statement have been included. These statements contain some amounts that are based upon management estimates and judgments. Future actual results could differ from such current estimates. The results for interim periods are not necessarily indicative of results for the entire year. customer: Millions of dollars Finished goods Work-in-process Raw materials and supplies Total inventories Millions of dollars Senior Notes due 2019, $2,000 million, 5.0% ($3 million of debt issuance cost) Senior Notes due 2021, $1,000 million, 6.0% ($8 million of debt issuance cost) Senior Notes due 2024, $1,000 million, 5.75% ($8 million of debt issuance cost) Senior Notes due 2055, $1,000 million, 4.625% ($16 million of discount; $11 million of debt issuance cost) Guaranteed Notes due 2044, $1,000 million, 4.875% ($11 million of discount; $10 million of debt issuance cost) Guaranteed Notes due 2043, $750 million, 5.25% ($21 million of discount; $7 million of debt issuance cost) Guaranteed Notes due 2023, $750 million, 4.0% ($6 million of discount; $4 million of debt issuance cost) Guaranteed Notes due 2027, $300 million, 8.1% Guaranteed Notes due 2022, €750 million, 1.875% ($3 million of discount; $3 million of debt issuance cost) Guaranteed Notes due 2027, $1,000 million, 3.5% ($10 million of discount; $8 million of debt issuance cost) Other Total Less current maturities Long-term debt Millions of dollars Senior Notes due 2019, 5.0% Senior Notes due 2021, 6.0% Guaranteed Notes due 2027, 3.5% Millions of dollars $2,500 million Senior Revolving Credit Facility $900 million U.S. Receivables Securitization Facility Commercial paper Precious metal financings Other Total short-term debt At September 30, 2021, we had no borrowings or letters of credit outstanding and $2,104 million of unused availability under this facility. the redemption of the notes and non-cash charges of $3 million for the write-off of unamortized debt issuance costs. At September 30, Millions of dollars Assets– Derivatives designated as hedges: Commodities Commodities Foreign currency Foreign currency Interest rates Interest rates Derivatives not designated as hedges: Commodities Foreign currency Non-derivatives: Available-for-sale securities Total Millions of dollars Liabilities– Derivatives designated as hedges: Commodities Commodities Foreign currency Foreign currency Interest rates Derivatives not designated as hedges: Commodities Foreign currency Non-derivatives: Performance share awards Performance share awards Total All other financial instruments in the table above, including equity securities as of December 31, 2020, are classified as Level 2. We present the gross assets and liabilities of our derivative financial instruments on the Consolidated Balance Sheets. 2021. Millions of dollars Non-derivatives: Assets: Short-term loans receivable Liabilities: Short-term debt Long-term debt Total Current liabilities for which the carrying value approximates fair value are excluded from the table below. Short-term and long-term debt are recorded at amortized cost in the Consolidated Balance Sheets. The carrying and fair values of short-term and of long-term debt exclude commercial paper and other miscellaneous debt. All financial instruments in the table Millions of dollars Foreign currency Interest rates Commodities Millions of dollars Derivatives designated as hedges: Commodities Foreign currency Interest rates Derivatives not designated as hedges: Commodities Commodities Foreign currency Non-derivatives designated as hedges: Long-term debt Total Millions of dollars Derivatives designated as hedges: Commodities Foreign currency Interest rates Derivatives not designated as hedges: Commodities Commodities Foreign currency Non-derivatives designated as hedges: Long-term debt Total Millions of dollars Available-for-sale securities: Commercial paper Bonds Certificates of deposit Time deposits Limited partnership investments Total available-for-sale securities Millions of dollars Available-for-sale securities: Commercial paper Bonds Certificates of deposit Limited partnership investments Total available-for-sale securities Held-to-maturity securities: Time deposits debt securities: 2020. Millions of dollars Proceeds from maturities of securities Proceeds from sales of securities Millions of dollars Available-for-sale securities: Limited partnership investments Millions of dollars Available-for-sale securities: Limited partnership investments Millions of dollars Service cost Interest cost Expected return on plan assets Actuarial and investment loss amortization Net periodic benefit costs Millions of dollars Service cost Interest cost Expected return on plan assets Actuarial and investment loss amortization Net periodic benefit costs Millions of dollars Service cost Interest cost Net periodic benefit costs Millions of dollars Service cost Interest cost Actuarial loss amortization Net periodic benefit costs building our new PO/TBA plant in Houston, Texas. Millions of dollars Beginning balance Additional provision Changes in estimates Amounts paid Foreign exchange effects Ending balance Millions of dollars, except per share amounts March June September Millions of dollars, except shares and per share amounts May 2016 Share Repurchase Program May 2017 Share Repurchase Program Millions of dollars, except shares and per share amounts May 2015 Share Repurchase Program May 2016 Share Repurchase Program Cash payments made during the reporting period may differ from the total purchase price, including commissions and fees, due to the timing of payments. Ordinary shares outstanding: Beginning balance Share-based compensation Warrants expired or exercised Employee stock purchase plan Repurchase of ordinary shares Ending balance Ordinary shares held as treasury shares: Beginning balance Share-based compensation Warrants exercised Employee stock purchase plan Repurchase of ordinary shares Ending balance Millions of dollars Balance – January 1, 2017 Other comprehensive income (loss) before reclassifications Amounts reclassified from Accumulated other comprehensive loss Net other comprehensive income (loss) Balance – September 30, 2017 Balance – January 1, 2016 Other comprehensive income (loss) before reclassifications Amounts reclassified from Accumulated other comprehensive loss Net other comprehensive income (loss) Balance – September 30, 2016 tables: Millions of dollars Reclassification adjustments for: Financial derivatives Defined pension and other postretirement benefit plan items: Amortization of: Prior service cost Actuarial loss Foreign currency translation adjustments Reclassifications, before tax Income tax expense Amounts reclassified out of Accumulated other comprehensive loss There was no impact to basic or diluted earnings per share from discontinued operations. Millions of dollars Net income (loss) Less: net (income) loss attributable to non-controlling interests Net income (loss) attributable to the Company shareholders Net income attributable to participating securities Net income (loss) attributable to ordinary shareholders – basic and diluted Millions of shares, except per share amounts Basic weighted average common stock outstanding Effect of dilutive securities: PSU awards Potential dilutive shares Earnings (loss) per share: Basic Diluted Millions of shares Participating securities Dividends declared per share of common stock Millions of dollars Net income (loss) Less: net (income) loss attributable to non-controlling interests Net income (loss) attributable to the Company shareholders Net income attributable to participating securities Net income (loss) attributable to ordinary shareholders – basic and diluted Millions of shares, except per share amounts Basic weighted average common stock outstanding Effect of dilutive securities: PSU awards Potential dilutive shares Earnings (loss) per share: Basic Diluted Millions of shares Participating securities Dividends declared per share of common stock Millions of dollars Sales and other operating revenues: Customers Intersegment Income from equity investments EBITDA Millions of dollars Sales and other operating revenues: Customers Intersegment Income from equity investments EBITDA Millions of dollars Sales and other operating revenues: Customers Intersegment Income from equity investments EBITDA Millions of dollars Sales and other operating revenues: Customers Intersegment Income from equity investments EBITDA Board of Directors and, assuming such approval is obtained, may require certain regulatory approvals or other closing conditions. Millions of dollars EBITDA: Total segment EBITDA Other EBITDA Less: Depreciation and amortization expense Interest expense Add: Interest income Income from continuing operations before income taxes Three Months Ended
September 30, Nine Months Ended
September 30, 2017 2016 2017 2016 $ 8,312 $ 7,191 $ 24,775 $ 20,879 204 174 574 557 8,516 7,365 25,349 21,436 6,939 5,903 20,531 16,771 218 188 622 580 27 25 77 73 7,184 6,116 21,230 17,424 1,332 1,249 4,119 4,012 (94 ) (72 ) (396 ) (237 ) 5 4 15 13 114 19 173 104 1,357 1,200 3,911 3,892 81 81 240 289 1,438 1,281 4,151 4,181 380 326 1,154 1,104 1,058 955 2,997 3,077 (2 ) (2 ) (14 ) (3 ) 1,056 953 2,983 3,074 1 (1 ) 2 (1 ) $ 1,057 $ 952 $ 2,985 $ 3,073 $ 2.67 $ 2.31 $ 7.49 $ 7.26 — (0.01 ) (0.03 ) (0.01 ) $ 2.67 $ 2.30 $ 7.46 $ 7.25 $ 2.67 $ 2.31 $ 7.49 $ 7.24 — (0.01 ) (0.03 ) (0.01 ) $ 2.67 $ 2.30 $ 7.46 $ 7.23 Three Months Ended
September 30,Nine Months Ended
September 30,Millions of dollars, except earnings per share 2021 2020 2021 2020 Sales and other operating revenues: Trade $ 12,401 $ 6,587 $ 32,586 $ 19,261 Related parties 299 189 757 555 12,700 6,776 33,343 19,816 Operating costs and expenses: Cost of sales 10,109 5,885 26,463 17,647 Impairment of long-lived assets — 582 — 582 Selling, general and administrative expenses 313 259 927 842 Research and development expenses 30 27 91 79 10,452 6,753 27,481 19,150 Operating income 2,248 23 5,862 666 Interest expense (126) (122) (366) (336) Interest income 1 3 8 10 Other (expense) income, net (12) 23 27 27 Income (loss) from continuing operations before equity investments and income taxes 2,111 (73) 5,531 367 Income from equity investments 104 62 389 123 Income (loss) from continuing operations before income taxes 2,215 (11) 5,920 490 Provision for (benefit from) income taxes 452 (125) 1,028 (82) Income from continuing operations 1,763 114 4,892 572 Loss from discontinued operations, net of tax (1) — (1) — Net income 1,762 114 4,891 572 Dividends on redeemable non-controlling interests (2) (2) (5) (5) Net income attributable to the Company shareholders $ 1,760 $ 112 $ 4,886 $ 567 Earnings per share: Net income attributable to the Company shareholders — Basic $ 5.25 $ 0.33 $ 14.58 $ 1.69 Diluted $ 5.25 $ 0.33 $ 14.57 $ 1.69 Three Months Ended
September 30, Nine Months Ended
September 30, 2017 2016 2017 2016 $ 1,056 $ 953 $ 2,983 $ 3,074 (100 ) (69 ) (260 ) (258 ) 74 5 232 52 (5 ) (16 ) (8 ) (57 ) (21 ) (48 ) (20 ) (149 ) 2 (3 ) (7 ) (9 ) — (2 ) (2 ) (2 ) 2 (1 ) (5 ) (7 ) 5 — 14 — — — — — 5 — 14 — — 1 — 1 10 8 29 23 3 4 9 9 7 5 20 15 11 17 112 73 — 7 — 7 (12 ) — (31 ) (7 ) 23 24 143 87 16 (20 ) 152 (54 ) 1,072 933 3,135 3,020 1 (1 ) 2 (1 ) $ 1,073 $ 932 $ 3,137 $ 3,019 Three Months Ended
September 30,Nine Months Ended
September 30,Millions of dollars 2021 2020 2021 2020 Net income $ 1,762 $ 114 $ 4,891 $ 572 Other comprehensive income (loss), net of tax – Financial derivatives 35 75 132 (289) Unrealized (losses) gains on available-for-sale debt securities — — (1) 1 Defined benefit pension and other postretirement benefit plans 28 10 56 31 Foreign currency translations (97) 86 (127) (47) Total other comprehensive (loss) income, net of tax (34) 171 60 (304) Comprehensive income 1,728 285 4,951 268 Dividends on redeemable non-controlling interests (2) (2) (5) (5) Comprehensive income attributable to the Company shareholders $ 1,726 $ 283 $ 4,946 $ 263 September 30,
2017 December 31,
2016 $ 1,204 $ 875 7 3 1,295 1,147 3,097 2,716 178 126 4,177 3,809 1,104 923 11,062 9,599 16,039 14,635 (5,302 ) (4,498 ) 10,737 10,137 428 415 1,644 1,575 19 20 570 528 480 550 303 618 $ 25,243 $ 23,442 Millions of dollars September 30, 2021 December 31, 2020 ASSETS Current assets: Cash and cash equivalents $ 1,893 $ 1,763 Restricted cash 5 2 Short-term investments 36 702 Accounts receivable: Trade, net 5,003 3,291 Related parties 248 150 Inventories 4,982 4,344 Prepaid expenses and other current assets 1,819 1,382 Total current assets 13,986 11,634 Operating lease assets 1,789 1,492 Property, plant and equipment 22,575 21,484 Less: Accumulated depreciation (7,739) (7,098) Property, plant and equipment, net 14,836 14,386 Equity investments 4,888 4,729 Goodwill 1,894 1,953 Intangible assets, net 666 751 Other assets 603 458 Total assets $ 38,662 $ 35,403 September 30,
2017 December 31,
2016 $ 3 $ 2 381 594 2,138 2,028 597 501 1,493 1,415 4,612 4,540 8,531 8,385 2,326 2,113 2,447 2,331 31 31 10,201 10,191 14,207 12,282 (1,359 ) (1,511 ) (15,754 ) (14,945 ) 7,326 6,048 1 25 7,327 6,073 $ 25,243 $ 23,442 Millions of dollars, except shares and par value data September 30, 2021 December 31, 2020 LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY Current liabilities: Current maturities of long-term debt $ 8 $ 8 Short-term debt 563 663 Accounts payable: Trade 3,494 2,398 Related parties 678 550 Accrued liabilities 2,665 1,883 Total current liabilities 7,408 5,502 Long-term debt 12,945 15,286 Operating lease liabilities 1,518 1,222 Other liabilities 2,383 2,957 Deferred income taxes 2,478 2,332 Commitments and contingencies 0 0 Redeemable non-controlling interests 116 116 Shareholders’ equity: 19 19 Additional paid-in capital 6,029 5,986 Retained earnings 8,216 4,440 Accumulated other comprehensive loss (1,883) (1,943) Treasury stock, at cost, 6,518,226 and 6,030,408 ordinary shares, respectively (581) (531) Total Company share of shareholders’ equity 11,800 7,971 Non-controlling interests 14 17 Total equity 11,814 7,988 Total liabilities, redeemable non-controlling interests and equity $ 38,662 $ 35,403 Nine Months Ended
September 30, 2017 2016 $ 2,983 $ 3,074 876 791 12 12 49 — (240 ) (289 ) 190 249 217 307 (108 ) (84 ) (31 ) (5 ) (278 ) (323 ) (219 ) 23 121 74 152 64 3,724 3,893 (1,146 ) (1,676 ) 29 — (512 ) (500 ) 381 603 (653 ) (607 ) 499 665 — (76 ) 75 — (21 ) (65 ) 155 209 609 1,295 (658 ) (1,356 ) (12 ) (22 ) (1,254 ) (1,530 ) Nine Months Ended
September 30,Millions of dollars 2021 2020 Cash flows from operating activities: Net income $ 4,891 $ 572 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,016 1,056 Impairment of long-lived assets — 582 Amortization of debt-related costs 21 12 Share-based compensation 50 43 Inventory valuation charges — 163 Equity investments— Equity income (389) (123) Distributions of earnings, net of tax 169 104 Deferred income tax provision (benefit) 7 (135) Changes in assets and liabilities that provided (used) cash: Accounts receivable (1,915) 152 Inventories (741) 452 Accounts payable 1,139 (90) Other, net 368 (127) Net cash provided by operating activities 4,616 2,661 Cash flows from investing activities: Expenditures for property, plant and equipment (1,285) (1,673) Purchases of available-for-sale debt securities — (270) Proceeds from sales and maturities of available-for-sale debt securities 346 90 Purchases of equity securities — (267) Proceeds from equity securities 309 313 Acquisition of equity method investment (104) (472) Proceeds from settlement of net investment hedges 358 — Payments for settlement of net investment hedges (355) — Other, net (66) (28) Net cash used in investing activities (797) (2,307) Cash flows from financing activities: Repurchases of Company ordinary shares (78) (4) Dividends paid - common stock (1,110) (1,053) Purchase of non-controlling interest — (30) Issuance of long-term debt — 2,492 Payments of debt issuance costs — (18) Repayments of long-term debt (2,275) (500) Debt extinguishment costs (57) — Issuance of short-term debt — 521 Repayments of short-term debt — (504) Net (repayments of) proceeds from commercial paper (103) 194 Collateral paid for interest rate derivatives — (238) Proceeds from settlement of cash flow hedges — 346 Other, net (4) (14) Net cash (used in) provided by financing activities (3,627) 1,192 Effect of exchange rate changes on cash (59) 50 Increase in cash and cash equivalents and restricted cash 133 1,596 Cash and cash equivalents and restricted cash at beginning of period 1,765 888 Cash and cash equivalents and restricted cash at end of period $ 1,898 $ 2,484 CASH FLOWS Nine Months Ended
September 30, 2017 2016 (866 ) (2,501 ) (1,060 ) (1,049 ) 990 812 (1,000 ) — (65 ) — (178 ) 177 (8 ) (5 ) (4 ) (1 ) (2,191 ) (2,567 ) 54 17 333 (187 ) 878 931 $ 1,211 $ 744 Ordinary Shares Additional
Paid-in
CapitalRetained
EarningsAccumulated
Other
Comprehensive
LossCompany
Share of
Shareholders’
EquityNon-
Controlling
InterestsMillions of dollars Issued Treasury Balance, June 30, 2021 $ 19 $ (494) $ 6,011 $ 6,837 $ (1,849) $ 10,524 $ 14 Net income — — — 1,762 — 1,762 — Other comprehensive loss — — — — (34) (34) — Share-based compensation — 2 18 (1) — 19 — Dividends - common stock ($1.13 per share) — — — (380) — (380) — Dividends - redeemable non-controlling interests ($15.00 per share) — — — (2) — (2) — Repurchases of Company ordinary shares — (89) — — — (89) — Balance, September 30, 2021 $ 19 $ (581) $ 6,029 $ 8,216 $ (1,883) $ 11,800 $ 14 Ordinary Shares Additional
Paid-in
CapitalRetained
EarningsAccumulated
Other
Comprehensive
LossCompany
Share of
Shareholders’
EquityNon-
Controlling
InterestsMillions of dollars Issued Treasury Balance, June 30, 2020 $ 19 $ (548) $ 5,958 $ 4,188 $ (2,259) $ 7,358 $ 19 Net income — — — 114 — 114 — Other comprehensive income — — — — 171 171 — Share-based compensation — 8 17 (8) — 17 — Dividends - common stock ($1.05 per share) — — — (352) — (352) — Dividends - redeemable non-controlling interests ($15.00 per share) — — — (2) — (2) — Distributions to non-controlling interests — — — — — — (2) Balance, September 30, 2020 $ 19 $ (540) $ 5,975 $ 3,940 $ (2,088) $ 7,306 $ 17 STATEMENTSTATEMENTS OF STOCKHOLDERS’SHAREHOLDERS’ EQUITY Additional
Paid-in
Capital Retained
Earnings Accumulated
Other
Comprehensive
Income (Loss) Company
Share of
Stockholders’
Equity Non-
Controlling
Interests Issued Treasury $ 31 $ (14,945 ) $ 10,191 $ 12,282 $ (1,511 ) $ 6,048 $ 25 — — — 2,985 — 2,985 (2 ) — — — — 152 152 — — 36 9 — — 45 — — — — (1,060 ) — (1,060 ) — — (845 ) — — — (845 ) — — — 1 — — 1 (22 ) $ 31 $ (15,754 ) $ 10,201 $ 14,207 $ (1,359 ) $ 7,326 $ 1 Ordinary Shares Additional
Paid-in
CapitalRetained
EarningsAccumulated
Other
Comprehensive
LossCompany
Share of
Shareholders’
EquityNon-
Controlling
InterestsMillions of dollars Issued Treasury Balance, December 31, 2020 $ 19 $ (531) $ 5,986 $ 4,440 $ (1,943) $ 7,971 $ 17 Net income — — — 4,891 — 4,891 — Other comprehensive income — — — — 60 60 — Share-based compensation — 39 43 — — 82 — Dividends - common stock ($3.31 per share) — — — (1,110) — (1,110) — Dividends - redeemable non-controlling interests ($45.00 per share) — — — (5) — (5) — Repurchases of Company ordinary shares — (89) — — — (89) — Sales of non-controlling interest — — — — — — (3) Balance, September 30, 2021 $ 19 $ (581) $ 6,029 $ 8,216 $ (1,883) $ 11,800 $ 14 Ordinary Shares Additional
Paid-in
CapitalRetained
EarningsAccumulated
Other
Comprehensive
LossCompany
Share of
Shareholders’
EquityNon-
Controlling
InterestsMillions of dollars Issued Treasury Balance, December 31, 2019 $ 19 $ (580) $ 5,954 $ 4,435 $ (1,784) $ 8,044 $ 19 Net income — — — 572 — 572 — Other comprehensive loss — — — — (304) (304) — Share-based compensation — 44 14 (9) — 49 — Dividends - common stock ($3.15 per share) — — — (1,053) — (1,053) — Dividends - redeemable non-controlling interests ($45.00 per share) — — — (5) — (5) — Repurchases of Company ordinary shares — (4) — — — (4) — Purchase of non-controlling interest — — 7 — — 7 — Distributions to non-controlling interests — — — — — — (2) Balance, September 30, 2020 $ 19 $ (540) $ 5,975 $ 3,940 $ (2,088) $ 7,306 $ 17 Page 9 9 12 12 13 16 24 25 26 27 31 33 Page 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. , is a limited liability company (Naamloze Vennootschap) incorporated under Dutch law by deed of incorporation dated October 15, 2009. Unless otherwise indicated, the “Company,” “we,” “us,” “our” or similar words are used to refer to LyondellBasell Industries N.V. together with its consolidated subsidiaries (collectively “LyondellBasell(“LyondellBasell N.V.”),. LyondellBasell N.V. is a worldwide manufacturer of chemicals and polymers, a refiner of crude oil, a significant producer of gasoline blending components and a developer and licensor of technologies for the production of polymers. Unless otherwise indicated, the “Company,” “we,” “us,” “our” or similar words are used to refer to LyondellBasell N.V. are unaudited and have been prepared from the books and records of LyondellBasell N.V. in accordance with the instructions to Form 10-Q and Rule 10-110-01 of Regulation S-X for interim financial information. Certain notes and other information have been condensed or omitted from the interim financial statements included in this report. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States (“U.S. GAAP”) for complete financial statements. In our opinion, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation have been included. The results for interim periods are not necessarily indicative of results for the entire year. These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.2.Accounting and Reporting ChangesIntangibles-Goodwill and Other—In January 2017, issued Accounting Standards Update (“ASU”) 2017-04,Intangibles—Goodwill and other (Topic 350): Simplifying the Test for Goodwill Impairmentto simplify the accounting for goodwill impairment. The guidance removes Step 2Standard Description This guidance clarifies that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321. The standard also includes scope considerations for entities that hold certain non-derivative forward contracts and purchased options to acquire equity securities that, upon settlement of the forward contract or exercise of the purchase option, would be accounted for under the equity method of accounting. This guidance is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years.
The prospective adoption of this guidance from January 1, 2021 did not have a material impact on our Consolidated Financial Statements.STATEMENTS—STATEMENTS-(Continued)reduce diversity in practice in the classification of certain transactions in the statement of cash flows. Such transactions include, but are not limited to, debt prepayment or debt extinguishment costs, settlement of zero coupon debt instruments, contingent consideration payments made after a business combination and distributions received from equity method of investments. The amendments in this ASU are effective for public entities for annual and interim periods beginning after December 15, 2017, with early adoption permitted. Early adoption of the amendments in this guidance in the second quarter of 2017 resulted in a reclassification of cash flows related to debt extinguishment costs incurred in March 2017 of $65 million from operating to financing activity cash flows. Other aspects of the amendment did not have a material impact on our Consolidated Statements of Cash Flows.Statement of Cash Flows—In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash. The ASU requires entities to include restricted cash and restricted cash equivalents in their cash and cash-equivalent balances in the statement of cash flows. Early retrospective adoption of this amendment in the second quarter of 2017 did not have a material impact on our Consolidated Statements of Cash Flows.Compensation—Stock Compensation—In May 2017, the FASB issued ASU 2017-09,Stock Compensation: Scope of Modification Accounting. The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting inTopic 718, Compensation—Stock Compensation. Early adoption of this amendment in the third quarter of 2017 did not have a material impact on our Consolidated Financial Statements.Standard Description 2017Revenue Recognition—In May 2014, the FASB2021ASU 2014-09,Revenue from Contracts with Customers (Topic 606), which supersedes the current revenue recognition requirements in ASC 606,Revenue Recognition. Under this guidance, entities should recognize revenues to depict the transfer of promised goods or services to customers in an amountand not yet adopted that reflects the consideration the entity expects to receive in exchange for those goods or services. This ASU also requires enhanced disclosures. In August 2015, the FASB issued ASU 2015-14,Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which deferred the original effective date for one year to annual and interim periods beginning after December 15, 2017. Retrospective and modified retrospective application is allowed.Amendments to Revenue Recognition—In 2016 the FASB issued several amendments toTopic 606, Revenue from Contracts with Customers.ASU 2016-08,Principal versus Agent Considerations,contains amendments that clarify the implementation guidance on principal versus agent considerations. ASU 2016-10,Identifying Performance Obligations and Licensing clarifies the guidance in the new revenue standard on identifying performance obligations and accounting for licenses of intellectual property. The FASB also issued ASU 2016-12,Narrow-Scope Improvements and Practical Expedients, which further clarifies the new revenue guidance primarily in the areas of collectability, noncash consideration, presentation of sales tax, and transition. The FASB also issued ASU 2016-20 Technical Corrections and Improvements to Topic 606, which provides numerous improvements related to the Topic 606. All amendments are effective with the same date as ASU 2014-09. Management is currently assessing the effects of applying the new standard and has preliminarily determined that there will not be a material impact on our Consolidated Financial Statements. We expect to use the modified retrospective transition method. We will complete any required changes to our systems and processes, including updating our internal controls, during the fourth quarter of 2017.Financial Instruments—In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The new guidance in this ASU includes a requirement for equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. Prospective application of this ASU is required for public entities for annual and interim periods beginning on or after December 15, 2017. We do not expect the adoption of this new guidanceexpected to have a material impact on our Consolidated Financial Statements.Three Months Ended
September 30,Nine Months Ended
September 30,Millions of dollars 2021 2020 2021 2020 Sales and other operating revenues: Olefins and co-products $ 1,453 $ 568 $ 3,729 $ 1,695 Polyethylene 2,705 1,423 7,469 4,159 Polypropylene 2,162 1,103 5,876 3,173 Propylene oxide and derivatives 832 421 2,059 1,217 Oxyfuels and related products 1,088 573 2,533 1,669 Intermediate chemicals 910 486 2,436 1,434 Compounding and solutions 1,019 834 3,134 2,295 Advanced polymers 261 169 748 501 Refined products 2,050 1,003 4,784 3,193 Other 220 196 575 480 Total $ 12,700 $ 6,776 $ 33,343 $ 19,816 STATEMENTS—STATEMENTS-(Continued)Leases—In February 2016,FASB issued ASU 2016-02,Leases (Topic 842), which supersedes the existing guidance for lease accounting in ASC 840,Leases. Under the new guidance, for leases with a term longer than 12 months a lessee should recognize a liability for lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. Topic 842 retains a classification distinction between finance leases and operating leases, with the classification affecting the pattern of expense recognition in the income statement. This ASU also requires enhanced disclosures. A modified retrospective transition approach is required for annual and interim periods beginning on or after December 15, 2018. Early adoption is permitted. We are currently assessing the impact of this new guidance on our Consolidated Financial Statements via an extensive review of numerous existing lease contracts and other purchase obligations that contain embedded lease features, all of which are classified as operating leases under the existing guidance.Financial Instruments—In June 2016, the FASB issued ASU 2016-13,Financial Instruments—Credit Losses (Topic 326):Measurement of Credit Losses on Financial Instruments. This amendment requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected, resulting in the use of a current expected credit loss (“CECL”) model when measuring an impairment of financial instruments. Credit losses related to available-for-sale securities should be recorded in the consolidated income statement through an allowance for credit losses. Estimated credit losses utilizing the CECL model are based on reasonable use of historical experience, current conditions and forecasts that affect the collectability of reported financial assets. This ASU also modifies the impairment model for available-for-sale debt securities by eliminating the concept of “other than temporary” as well as providing a simplified accounting model for purchased financial assets with credit deterioration since their origination. The guidance will be effective for public entities for annual and interim periods beginning after December 15, 2019. Early adoption is permitted. We are currently assessing the impactlocation of the amendment in this guidance on our Consolidated Financial Statements.Income Taxes—In October 2016, the FASB issued ASU 2016-16,Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory. The ASU is aimed at reducing complexity in accounting standards. Under current GAAP, the tax effects of intra-entity asset transfers (intercompany sales) are deferred until the transferred asset is sold to a third party or otherwise recovered through use. The new guidance eliminates the exception for all intra-entity sales of assets other than inventory, and a reporting entity would recognize tax expense from the sale of assets in the seller’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. Any deferred tax asset that arises in the buyer’s jurisdiction would also be recognized at the time of the transfer. The new guidance will be effective for public entities for annual periods beginning after December 15, 2017. We are currently assessing the impact of this new guidance on our Consolidated Financial Statements.Business Combinations—In January 2017, the FASB issued ASU 2017-01,Clarifying the Definition of a Business. This ASU clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether a transaction should be accounted for as an acquisition (or disposal) of an asset or a business. The amendments will be effective for public entities for annual and interim periods beginning after December 15, 2017. Early adoption is permitted. We do not expect the adoption of this new guidance to have a material impact on our Consolidated Financial Statements.Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets—In February 2017, the FASB issued ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. The guidance provides clarification about the termin substance nonfinancial asset, other aspects of the scope of Subtopic 610-20Other Income, and how an entity should account for partial sales of nonfinancial assets once the amendments in Update 2014-09 become effective. The amendments will be effective for public entities for annual and interim periods beginning after December 15, 2017. We do not expect the adoption of this new guidance to have a material impact on our Consolidated Financial Statements.LYONDELLBASELL INDUSTRIES N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)Compensation—Retirement Benefits—In March 2017, the FASB issued ASU 2017-07,Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The guidance will require changes in presentation of current service cost and other components of net benefit cost. The amendments will be effective for public entities for annual and interim periods beginning after December 15, 2017. We do not expect the adoption of this new guidance to have a material impact on our Consolidated Financial Statements.Receivables—Nonrefundable Fees and Other Costs—In March 2017, the FASB issued ASU 2017-08,Premium Amortization on Purchased Callable Debt Securities. This new guidance requires the premium on callable debt securities to be amortized to the earliest call date. Under current requirements, premiums on callable debt securities are generally amortized over the contractual life of the security. The amendments will be effective for public entities for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. We do not expect the adoption of this new guidance to have a material impact on our Consolidated Financial Statements.Derivatives and Hedging—In August 2017, the FASB issued ASU 2017-12,Targeted Improvements to Accounting for Hedging Activities. The new guidance will make more financial and nonfinancial hedging strategies eligible for hedge accounting and amends the presentation and disclosure requirements while changing how companies assess effectiveness. Overall, it is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. The amendments will be effective for public entities for annual and interim periods beginning after December 15, 2018. Early adoption is permitted and the Company will adopt the guidance effective January 1, 2018. We do not expect the adoption of this new guidance to have a material impact on our Consolidated Financial Statements.3.Accounts ReceivableThree Months Ended
September 30,Nine Months Ended
September 30,Millions of dollars 2021 2020 2021 2020 Sales and other operating revenues: United States $ 6,387 $ 2,983 $ 16,089 $ 8,587 Germany 886 494 2,585 1,533 China 572 369 1,693 914 Italy 489 290 1,339 884 Mexico 496 285 1,133 868 France 384 213 1,040 644 The Netherlands 423 197 1,039 562 Japan 432 161 993 639 Poland 300 205 841 617 Other 2,331 1,579 6,591 4,568 Total $ 12,700 $ 6,776 $ 33,343 $ 19,816 allowance for doubtful accounts receivable which isare reflected in the Consolidated Balance Sheets, as a reductionnet of accounts receivable, totaled $17allowance for credit losses, of $7 million and $16$15 million at September 30, 20172021 and December 31, 2016,2020, respectively.4.Inventories September 30,
2017 December 31,
2016 $ 2,705 $ 2,575 188 154 1,284 1,080 $ 4,177 $ 3,809 Millions of dollars September 30, 2021 December 31, 2020 Finished goods $ 3,329 $ 2,816 Work-in-process 167 144 Raw materials and supplies 1,486 1,384 Total inventories $ 4,982 $ 4,344 long-term debt, net of unamortized discount and debt issuance cost, consisted of the following: September 30, December 31, 2017 2016 $ 959 $ 1,906 990 988 992 991 973 972 979 979 722 721 740 739 300 300 880 785 992 — 7 6 8,534 8,387 (3 ) (2 ) $ 8,531 $ 8,385 Gains (losses) related to fairMillions of dollars September 30, 2021 December 31, 2020 Senior Notes due 2024, $1,000 million, 5.75% ($3 million of debt issuance cost) $ 997 $ 996 Senior Notes due 2055, $1,000 million, 4.625% ($15 million of discount; $11 million of debt issuance cost) 974 974 Term Loan due 2022, $4,000 million — 1,448 Guaranteed Notes due 2023, $750 million, 4.0% ($1 million of discount; $1 million of debt issuance cost) 423 745 Guaranteed Floating Rate Notes due 2023, $650 million ($3 million of debt issuance cost) 647 646 Guaranteed Notes due 2025, $500 million, 2.875% — 496 Guaranteed Notes due 2025, $500 million, 1.25% ($1 million of discount; $3 million of debt issuance cost) 495 495 Guaranteed Notes due 2026, €500 million, 0.875% ($1 million of discount; $3 million of debt issuance cost) 575 608 Guaranteed Notes due 2027, $1,000 million, 3.5% ($6 million of discount; $5 million of debt issuance cost) 1,079 1,090 Guaranteed Notes due 2027, $300 million, 8.1% 300 300 Guaranteed Notes due 2030, $500 million, 3.375% ($1 million of discount; $3 million of debt issuance cost) 499 495 Guaranteed Notes due 2030, $500 million, 2.25% ($4 million of discount; $4 million of debt issuance cost) 491 492 Guaranteed Notes due 2031, €500 million, 1.625% ($6 million of discount; $3 million of debt issuance cost) 570 602 Guaranteed Notes due 2040, $750 million, 3.375% ($2 million of discount; $8 million of debt issuance cost) 740 740 Guaranteed Notes due 2043, $750 million, 5.25% ($19 million of discount; $7 million of debt issuance cost) 724 723 Guaranteed Notes due 2044, $1,000 million, 4.875% ($10 million of discount; $9 million of debt issuance cost) 981 981 Guaranteed Notes due 2049, $1,000 million, 4.2% ($15 million of discount; $10 million of debt issuance cost) 975 975 Guaranteed Notes due 2050, $1,000 million, 4.2% ($6 million of discount; $10 million of debt issuance cost) 983 984 Guaranteed Notes due 2051, $1,000 million, 3.625% ($3 million of discount; $11 million of debt issuance cost) 986 986 Guaranteed Notes due 2060, $500 million, 3.8% ($4 million of discount; $6 million of debt issuance cost) 490 490 Other 24 28 Total 12,953 15,294 Less current maturities (8) (8) Long-term debt $ 12,945 $ 15,286 Cumulative Three Months Ended Nine Months Ended Year Ended Amount Inception September 30, September 30, December 31, Since Year 2017 2016 2017 2016 2016 Inception 2014 $ (4 ) $ 26 $ (46 ) $ 11 $ 42 $ 38 2016 2 — (1 ) — 3 2 2017 — — (10 ) — — (10 ) These fairGains (Losses) Cumulative Fair Value
Hedging Adjustments Included
in Carrying Amount of DebtThree Months Ended
September 30,Nine Months Ended
September 30,September 30, December 31, Millions of dollars 2021 2020 2021 2020 2021 2020 Senior Notes due 2021, 6.0% $ — $ 3 $ — $ (11) $ — $ — Guaranteed Notes due 2022, 1.875% — — — 1 — — Guaranteed Notes due 2025, 1.25% 1 — 1 — 1 — Guaranteed Notes due 2026, 0.875% 1 (1) 2 (2) — (2) Guaranteed Notes due 2027, 3.5% 5 4 12 (69) (90) (102) Guaranteed Notes due 2030, 3.375% 1 — (3) — (3) — Guaranteed Notes due 2030, 2.25% 1 — 1 — 1 — Guaranteed Notes due 2050, 4.2% 1 — 1 — 1 — Total $ 10 $ 6 $ 14 $ (81) $ (90) $ (104) LYONDELLBASELL INDUSTRIES N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)short-term debt consisted of the following: September 30, December 31, 2017 2016 $ — $ — — — 317 500 59 90 5 4 $ 381 $ 594 Millions of dollars September 30, 2021 December 31, 2020 U.S. Receivables Facility $ — $ — Commercial paper 397 500 Precious metal financings 159 140 Other 7 23 Total Short-term debt $ 563 $ 663 Guaranteed Notes due 2027—In March 2017, LYB International Finance II B.V. (“LYB Finance II”), a direct, 100% owned finance subsidiary of LyondellBasell Industries N.V., as defined in Rule 3-10(b) of Regulation S-X, issued $1,000 million of 3.5% guaranteed notes due 2027 at a discounted price of 98.968%.These unsecured notes, which are fully and unconditionally guaranteed by LyondellBasell Industries N.V., rank equally in right of payment to all of LYB Finance II’s existing and future unsecured indebtedness and to all of LyondellBasell N.V.’s existing and future unsubordinated indebtedness. There are no significant restrictions that would impede LyondellBasell N.V., as guarantor, from obtaining funds by dividend or loan from its subsidiaries.The indenture governing these notes contains limited covenants, including those restricting our ability and the ability of our subsidiaries to incur indebtedness secured by significant property or by capital stock of subsidiaries that own significant property, enter into certain sale and lease-back transactions with respect to any significant property or enter into consolidations, mergers or sales of all or substantially all of our assets.The notes may be redeemed before the date that is three months prior to the scheduled maturity date at a redemption price equal to the greater of 100% of the principal amount of the notes redeemed and the sum of the present values of the remaining scheduled payments of principal and interest (discounted at the applicable Treasury Yield plus 20 basis points) on the notes to be redeemed. The notes may also be redeemed on or after the date that is three months prior to the scheduled maturity date of the notes at a redemption price equal to 100% of the principal amount of the notes redeemed plus accrued and unpaid interest.Senior Notes due 2019—In March 2017, we redeemed $1,000 million aggregate principal amount of our outstanding 5% senior notes due 2019, and paid $65 million in make-whole premiums. In conjunction with the redemption of these notes, we recognized non-cash charges of $4 million for the write-off of unamortized debt issuance costs and $44 million for the write-off of the cumulative fair value hedge accounting adjustment related to the redeemed notes.Short-Term DebtIn June 2017, the term of ourOur $2,500 million revolving credit facility was extended for one year toSenior Revolving Credit Facility, of which $2,440 million expires in June 2023 and the remainder expires in June 2022, pursuant to a consent agreement. The revolving credit facility may be used for dollar and euro denominated borrowings,borrowings. The facility has a $500 million sublimitsub-limit for dollar and euro denominated letters of credit, a $1,000 million uncommitted accordion feature, and supports our commercial paper program. The aggregate balance of outstanding borrowings, including amounts outstanding under our commercial paper program, and letters of credit under this facility may not exceed $2,500 million at any given time. Borrowings under the facility bear interest at either a Base Ratebase rate or LIBOR rate, plus an applicable margin. Additional fees are incurred for the average daily unused commitments.STATEMENTS—STATEMENTS-(Continued)The facility contains customary covenants and warranties, including specified restrictions on indebtedness and liens. addition, we are required to maintain a leverage ratio at the end of every fiscal quarter of 3.50 to 1.00 or less for the period covering the most recent four quarters. We are in compliance with these covenants as of September 30, 2017. At September 30, 2017, we had $317July 2013, LYB International Finance B.V. issued $750 million of outstanding commercial paper, no outstanding letters4% guaranteed notes due 2023 at a discounted price of credit and no outstanding borrowings under this facility.Commercial Paper Program—We have a commercial paper program under which98.678%. In June 2021, we may issue up to $2,500redeemed $325 million of privately placed, unsecured, short-term promissory notes (“commercial paper”). This program is backed by our $2,500the outstanding notes. In conjunction with the partial redemption, we recognized $25 million Senior Revolving Credit Facility. Proceeds fromof debt extinguishment costs which are reflected in Interest expense in the issuanceConsolidated Statements of commercial paper may be usedIncome. The debt extinguishment costs include $23 million paid for general corporate purposes, including dividendsmake-whole premiums, fees and share repurchases. Interest rates onexpenses related to the commercial paper outstanding at September 30, 2017 are based on the termredemption of the notes and range from 141non-cash charges of $2 million for the write-off of unamortized debt discount and issuance costs.155 basis points.Securitization Facility—Our $900 million U.S. accounts receivable securitization facility, which expires in 2018,Receivables Facility has a purchase limit of $900 million in addition to a $300 million uncommitted accordion feature. In June 2021, we extended the term of the facility to June 2024 in accordance with the terms of the agreement. This facility provides liquidity through the sale or contribution of trade receivables by certain of our U.S. subsidiaries to a wholly owned, bankruptcy-remote subsidiary on an ongoing basis and without recourse. The bankruptcy-remote subsidiary may then, at its option and subject to a borrowing base of eligible receivables, sell undivided interests inWe pay variable interest rates on our secured borrowings. Additional fees are incurred for the pool of trade receivables to financial institutions participating in the facility. In the event of liquidation, the bankruptcy-remote subsidiary’s assets will be used to satisfy the claims of its creditors prior to any assets or value in the bankruptcy-remote subsidiary becoming available to us. We are responsible for servicing the receivables.average daily unused commitments. This facility also provides for the issuance of letters of credit up to $200 million. The term of the securitization facility may be extended in accordance with the terms of the agreement. The facility is also subject to customary covenants and warranties, including limits and reserves and the maintenance of specified financial ratios. We are required to maintain a leverage ratio at the end of every fiscal quarter of 3.50 to 1.00 or less for the period covering the most recent four quarters. Performance obligations under the facility are guaranteed by the parent company. Additional fees are incurred for the average daily unused commitments.2017, there were2021, we had no borrowings or letters of credit outstanding and $900 million unused availability under this facility.facility.Othercommercial paper outstanding at September 30, 2021 are based on the terms of the notes and range from 0.13% to 0.17%. At September 30, 2021, we had $397 million of outstanding commercial paper.20172021 and December 31, 2016,2020, our weighted average interest raterates on outstanding short-termShort-term debt was 1.4%were 0.7% and 0.9%, respectively.In the nine months ended September 30, 2017 and 2016, amortization$16$21 million and $12 million for the nine months ended September 30, 2021 and 2020, respectively, which is included in Interest expense in the Consolidated Statements of Income.STATEMENTS—STATEMENTS-(Continued)6.Financial Instruments and Fair Value Measurementscurrency exchangeinterest rates and interestcurrency exchange rates. To manage the volatility related to these exposures, we selectively enter into derivative transactionscontracts pursuant to our risk management policies.the Company’sour financial instruments, risk management policies, derivative instruments, hedging activities and fair value measurement can be found in Notes 142 and 1513 to our Consolidated Financial Statements included in the Company’sour Annual Report on Form 10-K for the year ended December 31, 2016.2020. If applicable, updates have been included in the respective sections below.as of September 30, 2017 and December 31, 2016for the periods presented that are measured at fair value on a recurring basis: September 30, 2017 December 31, 2016 Notional Fair Notional Fair Balance Sheet Amount Value Amount Value Classification $ 22 $ — $ 4 $ — Prepaid expenses and other current assets 16 — 54 3 Other assets — 15 604 34 Prepaid expenses and other current assets 2,000 70 2,439 282 Other assets — 24 — 5 Prepaid expenses and other current assets 1,950 11 2,200 11 Other assets 131 12 85 3 Prepaid expenses and other current assets 32 — 11 — Prepaid expenses and other current assets 1,299 1,295 1,069 1,073 Short-term investments $ 5,450 $ 1,427 $ 6,466 $ 1,411 September 30, 2021 December 31, 2020 Millions of dollars Notional Amount Fair Value Notional Amount Fair Value Balance Sheet
ClassificationAssets– Derivatives designated as hedges: Commodities $ 35 $ 47 $ 19 $ 3 Prepaid expenses and other current assets Commodities 10 7 41 4 Other Assets Foreign currency 614 82 — 26 Prepaid expenses and other current assets Foreign currency 1,024 25 — — Other assets Interest rates — 5 — — Prepaid expenses and other current assets Interest rates 416 3 122 2 Other assets Derivatives not designated as hedges: Commodities 288 38 71 2 Prepaid expenses and other current assets Commodities 1 1 — — Other assets Foreign currency 150 2 149 — Prepaid expenses and other current assets Non-derivatives: Available-for-sale debt securities — — 348 349 Short-term investments Equity securities 36 35 353 353 Short-term investments Total $ 2,574 $ 245 $ 1,103 $ 739 STATEMENTS—STATEMENTS-(Continued) September 30, 2017 December 31, 2016 Notional Fair Notional Fair Balance Sheet Amount Value Amount Value Classification $ 59 $ 2 $ — $ — Accrued liabilities 13 — — — Other liabilities 139 9 — — Accrued liabilities 950 120 — — Other liabilities 2,050 42 1,400 20 Other liabilities 192 16 103 11 Accrued liabilities 631 1 28 1 Accrued liabilities 20 20 19 19 Accrued liabilities 21 21 22 22 Other liabilities $ 4,075 $ 231 $ 1,572 $ 73 All derivatives and available-for-sale securities in the tables above are classified as Level 2, except for September 30, 2021 December 31, 2020 Millions of dollars Notional Amount Fair Value Notional Amount Fair Value Balance Sheet
ClassificationLiabilities– Derivatives designated as hedges: Commodities $ — $ — $ — $ 2 Accrued liabilities Foreign currency 855 101 1,213 146 Accrued liabilities Foreign currency 2,270 144 2,682 302 Other liabilities Interest rates — 1 — — Accrued liabilities Interest rates 1,600 228 1,000 343 Other liabilities Derivatives not designated as hedges: Commodities 3 — 113 14 Accrued liabilities Foreign currency 842 16 76 1 Accrued liabilities Total $ 5,570 $ 490 $ 5,084 $ 808 available-for-saleequity securities discussed below that are measured at fair value using the net asset value per share, (oror its equivalent)equivalent, practical expedient and have not been classified in the fair value hierarchy.2017,2021, our outstanding foreign currency andcontracts, not designated as hedges, mature from October 2021 to March 2022. Our commodity contracts, not designated as hedges, mature from October 20172021 to December 2017 and from October 2017 to June 2018, respectively.LYONDELLBASELL INDUSTRIES N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)asfor the periods presented. Due to the short maturity, the fair value of September 30, 2017all non-derivative financial instruments included in Current assets and December 31, 2016: September 30, 2017 December 31, 2016 Carrying
Value Fair
Value Carrying
Value Fair
Value $ 561 $ 561 $ 369 $ 369 $ 59 $ 67 $ 90 $ 98 8,528 9,428 8,382 9,147 $ 8,587 $ 9,495 $ 8,472 $ 9,245 abovebelow are classified as Level 2. There were no transfers between Level 1 and Level 2September 30, 2021 December 31, 2020 Millions of dollars Carrying
ValueFair
ValueCarrying
ValueFair
ValueNon-derivatives: Liabilities: Short-term debt $ 159 $ 129 $ 140 $ 154 Long-term debt 12,929 14,493 15,266 17,290 Total $ 13,088 $ 14,622 $ 15,406 $ 17,444 any of our financial instruments during the periods presented:September 30, 2021 December 31, 2020 Millions of euro/dollars Notional Value Notional Value Expiration Date Equivalent
US$Equivalent
US$Foreign currency € 2,367 $ 2,758 € 1,667 $ 1,890 2022 to 2030 ended September 30, 2017 and the year ended December 31, 2016.Net Investment Hedges—In August 2017 and September 2017, forward exchangeof 2021, we entered into four foreign currency contracts and basis swaps with an aggregate notional value of €550€1,000 million that were designated as net investment hedges.€550€300 million ($658355 million at the expiry spot rate) to our counterparties and received $609$358 million from our counterparties.$49following table summarizes our cash flow hedges outstanding for the periods presented:September 30, 2021 December 31, 2020 Millions of dollars Notional Value Notional Value Expiration Date Foreign currency $ 2,005 $ 2,005 2021 to 2027 Interest rates 1,000 1,000 2023 to 2024 Commodities 45 60 2021 to 2022 loss is reflectedof collateral held with our counterparties related to our forward-starting interest rate swaps; this amount represents the maximum amount of collateral required in foreign currency translation adjustmentsaccordance with the swap agreements. Related cash flows are included in Accumulated other comprehensive loss. Cash flows from the settlement of these foreign currency contracts are reported in Cash flows from investingfinancing activities in the Consolidated Statements of Cash Flows.September 30, 2021 December 31, 2020 Millions of dollars Notional Value Notional Value Expiration Date Interest rates $ 1,016 $ 122 2025 to 2030 February 2017,the first nine months of 2021, we entered into €617 million of basisfixed-for-floating interest rate swaps to reducemitigate the volatility in stockholders’ equity resulting from changes in currency exchange rates of our foreign subsidiaries with respect to the U.S. dollar. We use the critical terms match to assess hedge effectiveness of these basis swaps by comparing the spot rate change in the basis swaps andfair value associated with the spot rate changerisk of variability in the designated net investment.In September 2016, €4503-month LIBOR rate component of $150 million of our basis swaps expired. Upon settlement of these basis swap contracts, we paid €450 million ($506 million at the expiry spot rate) to our counterparties and received $500 million, from3.375% guaranteed notes due 2030, $300 million of our counterparties.$1,000 million, 3.5% guaranteed notes due 2027, $150 million of our $500 million, 2.875% guaranteed notes due 2025, $150 million of our $500 million, 1.25% guaranteed notes due 2025 and $150 million of our $500 million, 2.25% guaranteed notes due 2030. The $6 million loss is reflected in foreign currency translation adjustments in Accumulated other comprehensive loss. Cash flows from the settlementfixed-rate and variable-rate components for these trades are settled semi-annually and quarterly, respectively.STATEMENTS—STATEMENTS-(Continued)investment hedges. addition, we had outstanding foreign-currency denominated debt,September 2021, upon the redemption of our $500 million, 2.875% guaranteed notes due 2025, the $150 million fixed-for-floating interest rate swap entered in April 2021 was dedesignated and concurrently redesignated as a partial-term hedge to mitigate the change in the fair value associated with notionalthe risk of variability in the 3-month LIBOR rate component of $150 million of our $1,000 million, 4.2% guaranteed notes due 2050. Effects of Financial Instruments Three Months Ended September 30, Gain (Loss) Recognized in AOCI Gain (Loss) Reclassified from AOCI to Income Gain (Loss) Recognized in Income Income Statement Millions of dollars 2021 2020 2021 2020 2021 2020 Classification Derivatives designated as hedges: Commodities $ 38 $ 8 $ (14) $ — $ — $ — Cost of sales Foreign currency 135 (125) (60) 89 9 8 Interest expense Interest rates 17 102 1 1 (5) 1 Interest expense Derivatives not designated as hedges: Commodities — — — — 6 (1) Sales and other operating revenues Commodities — — — — 49 42 Cost of sales Foreign currency — — — — (32) (1) Other income (expense), net Non-derivatives designated as hedges: Long-term debt — (38) — — — — Other income (expense), net Total $ 190 $ (53) $ (73) $ 90 $ 27 $ 49 Effects of Financial Instruments Nine Months Ended September 30, Gain (Loss) Recognized in AOCI Gain (Loss) Reclassified from AOCI to Income Gain (Loss) Recognized in Income Income Statement Millions of dollars 2021 2020 2021 2020 2021 2020 Classification Derivatives designated as hedges: Commodities $ 67 $ 6 $ (18) $ — $ — $ — Cost of sales Foreign currency 274 (47) (128) 81 34 38 Interest expense Interest rates 117 (430) 4 3 — 91 Interest expense Derivatives not designated as hedges: Commodities — — — — 18 4 Sales and other operating revenues Commodities — — — — 72 116 Cost of sales Foreign currency — — — — (61) (11) Other income (expense), net Non-derivatives designated as hedges: Long-term debt — (36) — — — — Other income (expense), net Total $ 458 $ (507) $ (142) $ 84 $ 63 $ 238 totaling €750 million ($850 million),excluded from the assessment of effectiveness for foreign currency contracts designated as a net investment hedge athedges recognized in other comprehensive income for the three and nine months ended September 30, 2021 were gains of $1 million and $5 million, respectively, and for the three and nine months ended September 30, 2020 were gains of $1 million and losses of less than $1 million, respectively.20172021, respectively, and December 31, 2016.There was no ineffectiveness recorded for any of these net investment hedging relationshipsless than $1 million and $3 million decrease in interest expense during the three and nine months ended September 30, 2017 and 2016.Cash Flow Hedges—The following table summarizes our cash flow hedges outstanding at September 30, 2017 and December 31, 2016: September 30, 2017 December 31, 2016 Notional
Value Notional
Value Expiration
Date $ 2,300 $ 2,300 2021 to 2027 1,000 1,000 2049 110 58 2017 to 2019 The ineffectiveness recorded for these cash flow hedging relationships was losses of less than $1 million during each of the three months ended September 30, 2017 and 2016 and losses of $1 million and $1 million during the nine months ended September 30, 2017 and 2016.As of September 30, 2017, less than $1 million (on a pretax basis) and $2 million (on a pretax basis) are scheduled to be reclassified as decreases to interest expense and cost of sales respectively over the next twelve months.Fair Value Hedges—In February 2017, we entered into U.S. dollar fixed-for-floating interest rate swaps to mitigate changes in the fair value of our $1,000 million 3.5% guaranteed notes due 2027 associated with the risk of variability in the 3 Month USD LIBOR rate (the benchmark interest rate). The fixed-rate and variable-rate are settled semi-annually and quarterly,2020, respectively.In the third quarter of 2014, we entered into U.S. dollar fixed-for-floating interest rate swaps to mitigate changes in the fair value of our $2,000 million 5% senior notes due 2019. In March 2017, concurrent with the redemption of $1,000 million of our outstanding 5% senior notes due 2019, we dedesignated the related $2,000 million fair value hedge and terminated swaps in the notional amount of $1,000 million. At the same time, we redesignated the remaining $1,000 million notional amount of swaps as a fair value hedge of the remaining $1,000 million of 5% senior notes outstanding. For information related to charges recognized as a result of the dedesignation of the hedging relationship, see Note 5.At September 30, 2017 and December 31, 2016, we had outstanding interest rate contracts with aggregate notional amounts of $3,000 million and $2,600 million, respectively, designated as fair value hedges. Our interest rate contracts outstanding at September 30, 2017 mature from 2019 to 2027.The ineffectiveness related to these fair value hedging relationships resulted in net losses of $4 million and $11 million for the three months and nine months ended September 30, 2017, respectively, and net gains of $8 million and $26 million, respectively, for the three and nine months ended September 30, 2016, respectively.LYONDELLBASELL INDUSTRIES N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)Impact on Earnings and Other Comprehensive Income—The following table summarizes the pre-tax effect of derivative instruments and non-derivative instruments on Other comprehensive income and earnings for the three months ended September 30: Effect of Financial Instruments Gain (Loss)
Recognized
in AOCI Gain (Loss)
Reclassified
from AOCI
to Income Additional
Gain (Loss)
Recognized
in Income Income Statement
Classification 2017 2016 2017 2016 2017 2016 $ 3 $ — $ — $ — $ — $ — Cost of sales (155 ) (52 ) 74 5 — — Other income, net (5 ) (21 ) — — 3 (12 ) Interest expense — — — — (6 ) (4 ) Sales and other
operating revenues
— — — — 6 (5 ) Cost of sales — — — — (6 ) 1 Other income, net (30 ) (2 ) — — — — $ (187 ) $ (75 ) $ 74 $ 5 $ (3 ) $ (20 ) LYONDELLBASELL INDUSTRIES N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)The following table summarizes the pre-tax effect of derivative instruments and non-derivative instruments on Other comprehensive income and earnings for the nine months ended September 30: Effect of Financial Instruments Gain (Loss)
Recognized
in AOCI Gain (Loss)
Reclassified
from AOCI
to Income Additional
Gain (Loss)
Recognized
in Income Income Statement
Classification 2017 2016 2017 2016 2017 2016 $ (4 ) $ — $ — $ — $ — $ — Cost of sales (403 ) (134 ) 232 52 — — Other income, net (23 ) (175 ) — — 20 31 Interest expense — — — — (9 ) 6 Sales and other
operating revenues
— — — — (31 ) (27 ) Cost of sales — — — — (7 ) 13 Other income, net (95 ) 12 — — — — $ (525 ) $ (297 ) $ 232 $ 52 $ (27 ) $ 23 Foreign currency losses recognized in other comprehensive income representing the effective portion of our net investment hedges include losses of $87 million and $265 million in the three and nine months ended September 30, 2017, respectively, and $6 million and $39 million in the three and nine months ended September 30, 2016, respectively.The pre-tax effect of the gains (losses) recognized in income for our fixed-for-floating interest rate swaps includes the net value of interest accrued of $5 million and $18 million during the three and nine months ended September 30, 2017 and $6 million and $17 million for the three and nine months ended 2016, respectively.LYONDELLBASELL INDUSTRIES N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)MarketableAvailable-for-Sale Debt Securities—The following table summarizes the amortized cost, gross unrealized gains and losses, and fair value of our outstanding available-for-sale and held-to maturity securities that are outstanding as of September 30, 2017 and December 31, 2016: September 30, 2017 Cost Gross
Unrealized
Gains Gross
Unrealized
Losses Fair
Value $ 177 $ — $ — $ 177 621 1 — 622 150 — — 150 1 — — 1 350 1 (6 ) 345 $ 1,299 $ 2 $ (6 ) $ 1,295 December 31, 2016 Cost Gross
Unrealized
Gains Gross
Unrealized
Losses Fair
Value $ 232 $ — $ — $ 232 141 — — 141 347 1 — 348 350 2 — 352 $ 1,070 $ 3 $ — $ 1,073 $ 74 $ — $ — $ 74 At September 30, 2017 and December 31, 2016, we had marketable securities classified as Cash and cash equivalents of $725 million and $351 million, respectively.Millions of dollars Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt securities at September 30, 2021 $ — $ — $ — $ — Debt securities at December 31, 2020 348 1 — 349 other-than-temporary impairments of our available-for-sale and held-to-maturity investments have beendebt securities were recorded in Accumulated other comprehensive loss duringfor the three and nine months ended September 30, 20172021 and for the year ended December 31, 2016.As of September 30, 2017, our available-for-sale securities had the following maturities: commercial paper securities held by the Company had maturities between five and six months; bonds had maturities between seven and thirty-seven months; certificates of deposit mature within six months; and limited partnership investments mature between one and three months.LYONDELLBASELL INDUSTRIES N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)20172021 and 20162020 are summarized in the following table: Three Months Ended
September 30, Nine Months Ended
September 30, 2017 2016 2017 2016 $ 12 $ 8 $ 499 $ 665 — — — — No gainThree Months Ended
September 30,Nine Months Ended
September 30,Millions of dollars 2021 2020 2021 2020 Proceeds from maturities of available-for-sale debt securities $ 55 $ — $ 346 $ — Proceeds from sales of available-for-sale debt securities — 90 — 90 loss was realizedgreater than twelve months as of September 30, 2021 and December 31, 2020.connectionEquity Securities—Our investment in equity securities consists of an investment in a limited partnership with a notional amount of $36 million and $353 million as of September 30, 2021 and December 31, 2020, respectively. The carrying amount approximates fair value. The investment is carried at its net asset value as a practical expedient at September 30, 2021 and fair value at December 31, 2020. The investment is under an orderly voluntary liquidation by the salesfund administrator and we expect the investment to be fully liquidated by early 2022, during which time redemption or sale of the investment is restricted.available-for-saleinvestments in equity securities during the three and nine months ended September 30, 20172021, respectively, and 2016.During the nine months ended September 30, 2017, we had maturities of our held-to-maturity securities of $75 million. During$312 million and $313 million during the three and nine months ended September 30, 2017, we had no sales of our held-to-maturity securities and we had no transfers of investments classified as held-to-maturity to available-for-sale.The following table summarizes the fair value and2020, respectively. losses related to available-for-sale and held-to-maturity securities that were in a continuous unrealized loss position for less than and greater than twelve months as of September 30, 2017 and December 31, 2016: September 30, 2017 Less than 12 months Greater than 12 months Fair
Value Unrealized
Loss Fair
Value Unrealized
Loss $ 122 $ (5 ) $ 105 $ (2 ) December 31, 2016 Less than 12 months Greater than 12 months Fair
Value Unrealized
Loss Fair
Value Unrealized
Loss $ — $ — $ 105 $ (3 ) Foreign Currency Gain (Loss)—Other income, net, in the Consolidated Statements of Income reflected losses of less than $1 million and $6 million foron our equity securities that were outstanding during the three and nine months ended September 30, 2017, respectively,2021, and a gain of $1 million and a loss of $5 million forno unrealized gains or losses were recognized during the three and nine months ended September 30, 2016, respectively.Repurchase Agreements—At September 30, 2017 and December 31, 2016,2020.had investments in tri-party repurchase agreements of $561 million and $369 million, respectively. Depending upon maturity, these tri-party repurchase agreements are treated as short-term loans receivable and are reflected in Prepaid expenses and other current assets or as long-term loans receivable reflected in Other investments and long-term receivables on our Consolidated Balance Sheets.LYONDELLBASELL INDUSTRIES N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)7.Pension and Other Postretirement BenefitsNet periodic pension benefits included the following cost components for the periods presented: U.S. Plans Three Months Ended
September 30, Nine Months Ended
September 30, 2017 2016 2017 2016 $ 11 $ 11 $ 35 $ 33 15 22 45 66 (30 ) (34 ) (91 ) (104 ) 5 5 16 15 $ 1 $ 4 $ 5 $ 10 Non-U.S. Plans Three Months Ended
September 30, Nine Months Ended
September 30, 2017 2016 2017 2016 $ 9 $ 8 $ 28 $ 24 5 8 16 24 (4 ) (6 ) (13 ) (18 ) 4 2 11 6 $ 14 $ 12 $ 42 $ 36 Net periodic other postretirement benefits included the following cost components for the periods presented: U.S. Plans Three Months Ended
September 30, Nine Months Ended
September 30, 2017 2016 2017 2016 $ — $ — $ 2 $ 2 3 3 7 9 $ 3 $ 3 $ 9 $ 11 Non-U.S. Plans Three Months Ended
September 30, Nine Months Ended
September 30, 2017 2016 2017 2016 $ 1 $ — $ 2 $ 1 — — 1 1 1 1 2 2 $ 2 $ 1 $ 5 $ 4 LYONDELLBASELL INDUSTRIES N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)8.Income TaxesOurestimate an annual effective income tax rate forwhich is applied to the three months ended September 30, 2017 was 26.4% compared with 25.4% foryear-to-date ordinary income (loss). Tax effects of significant unusual or infrequently occurring items are excluded from the three months ended September 30, 2016. For the nine months ended September 30, 2017, theestimated annual effective income tax rate was 27.8% compared with 26.4% forcalculation and recognized in the first nine months ended September 30, 2016. interim period in which they occur.the U.S. domestic production activity deduction, changes in valuation allowances, changes in foreign exchange gains/gains or losses, the amount of exempt income, and changes in unrecognized tax benefits associated with uncertain tax positions.Compared withpositions and changes in tax laws.2016,2021 compared to the higherthird quarter of 2020. The lower effective tax rate for the third quarter of 2017 was2021 is primarily attributable to changesthe recognition of a tax benefit of $125 million, primarily from a non-cash impairment in pretax2020. This tax benefit on our $11 million of pre-tax loss for the third quarter of 2020 resulted in an abnormally high effective tax rate.in countries with varying statutory tax rates, prior year adjustments to our deferred tax liabilities, and an increaserate increased in foreign currency exchange gains, partially offset by an increase in exempt income, and an increase in U.S. domestic production activity deduction. Compared with the first nine months of 2016,2021 compared to the first nine months of 2020. The higher effective tax rate for the first nine months of 2017 was2021 is primarily attributable to changes in valuation allowances, changes in pretax income in countries with varying statutoryincreased pre-tax earnings relative to our tax rates, a decrease inrate drivers, primarily exempt income and prior year adjustments to our deferred(12.4%), coupled with the tax liabilities, partially offset by an increasebenefit recognized on a non-cash impairment in U.S. domestic production activity deduction.We operate in multiple jurisdictions throughout the world, and our tax returns are periodically audited or subjected to review by tax authorities. The Company is currently under examination in a number of tax jurisdictions. 2020 (21.7%). a result, there is an uncertainty in income taxes recognized in the Company’s financial statements. Tax benefits totaling $552 million and $546 million were unrecognized as of September 30, 20172021 and December 31, 2016, respectively. Positions challenged by the tax authorities may be settled or appealed by the Company. It is reasonably possible that, within the next twelve months, due2020, we had $497 million and $67 million, respectively, of income taxes payable which was included in Accrued liabilities in our Consolidated Balance Sheets.settlementordinary conduct of uncertain tax positions with various tax authoritiesbusiness, generally for quantities required for our businesses and the expirationat prevailing market prices. These commitments are designed to assure sources of statutes of limitations, unrecognized tax benefits could decrease by up to approximately $90 million.We monitor income tax developments (including, for example, the U.S. tax reform proposalssupply and the European Union’s state aid investigations) in countries where we conduct business. Recently, there has been an increase in attention, both in the U.K. and globally, to the tax practices of multinational companies, including proposals by the Organization for Economic Cooperation and Development with respect to base erosion and profit shifting. Such attention may result in legislative changes that could affect our tax rate. Management doesare not believe that recent changes in income tax laws will have a material impact on our Consolidated Financial Statements, although new or proposed changes to tax laws could affect our tax liabilities in the future. In October 2016, the U.S. Treasury issued final Section 385 debt-equity regulations that may impact our internal financings in future years. Pursuant to an Executive Order, the Treasury Department reviewed these regulations and recently concluded to partially retain the regulations pending potential enactment of U.S. tax reform, which is expected to make it possible for the regulationsbe in excess of normal requirements. As of September 30, 2021be revoked.STATEMENTS—STATEMENTS-(Continued)9.Commitments and ContingenciesInstruments—Instruments—We have obtained letters of credit, performance and surety bonds and have issued financial and performance guarantees to support trade payables, potential liabilities and other obligations. Considering the frequency of claims made against the financial instruments we use to support our obligations, and the magnitude of those financial instruments in light of our current financial position, management does not expect that any claims against or draws on these instruments would have a material adverse effect on our Consolidated Financial Statements. We have not experienced any unmanageable difficulty in obtaining the required financial assurance instruments for our current operations.Remediation—Remediation—Our accrued liability for future environmental remediation costs at current and former plant sites and other remediation sites totaled $99$144 million and $95$133 million as of September 30, 20172021 and December 31, 2016,2020, respectively. At September 30, 2017,2021, the accrued liabilities for individual sites range from less than $1 million to $17$27 million. The remediation expenditures are expected to occur over a number of years, and not to be concentrated in any single year. In our opinion, it is reasonably possible that losses in excess of the liabilities recorded may have been incurred. However, we cannot estimate any amount or range of such possible additional losses. New information about sites, new technology or future developments such as involvement in investigations by regulatory agencies, could require us to reassess our potential exposure related to environmental matters.The following table summarizes the activity in our accrued environmental liability included in “Accrued liabilities” and “Other liabilities:” Nine Months Ended
September 30, 2017 2016 $ 95 $ 106 — 3 3 10 (7 ) (16 ) 8 2 $ 99 $ 105 Access Indemnity Demand—In December 2010, one of our subsidiaries received demand letters from affiliates of Access Industries (collectively, “Access Entities”), a more than five percent shareholder of the Company, demanding indemnity for losses, including attorney’s fees and expenses, arising out of a pending lawsuit styledEdward S. Weisfelner, as Litigation Trustee of the LB Litigation Trust v. Leonard Blavatnik, et al.,Adversary Proceeding No. 09-1375 (REG), in the United States Bankruptcy Court, Southern District of New York. In theWeisfelner lawsuit, the plaintiffs seek to recover from Access the return of all amounts earned by the Access Entities related to their purchase of shares of Lyondell Chemical prior to its acquisition by Basell AF S.C.A.; distributions by Basell AF S.C.A. to its shareholders before it acquired Lyondell Chemical; and management and transaction fees and expenses. Trial of the lawsuit was held in October 2016. In April 2017, the court awarded $7.2 million to the plaintiffs and denied all other relief, and in May 2017 the court issued its Final Judgment reflecting this ruling. With prejudgment interest included, the total Final Judgment is $12.6 million. In May 2017, the plaintiffs filed an appeal of this Final Judgment to the Federal District Court for the Southern District of New York. That appeal remains pending.The Access Entities have also demanded $100 million in management fees under a 2007 management agreement between an Access affiliate and the predecessor of LyondellBasell AF, as well as other unspecified amounts relatingLYONDELLBASELL INDUSTRIES N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)to advice purportedly given in connection with financing and other strategic transactions. In June 2009, an Access affiliate filed a proof of claim in Bankruptcy Court against LyondellBasell AF seeking “no less than” $723 thousand for amounts allegedly owed under the 2007 management agreement. In April 2011, Lyondell Chemical filed an objection to the claim and brought a declaratory judgment action for a determination that the demands are not valid. The declaratory judgment action is stayed pending the outcome of theWeisfelner lawsuit.We do not believe that the 2007 management agreement is in effect or that the Company or any Company-affiliated entity owes any obligations under the management agreement, including for management fees or for indemnification. We intend to vigorously defend our position in any proceedings and against any claims or demands that may be asserted.Although the court issued its Final Judgment inWeisfelner in May 2017 as noted above, it remains on appeal and subject to further potential appeal by the parties. Accordingly, we cannot at this time estimate the reasonably possible loss or range of loss that may be incurred.409A Matter—Certain of the Company’s current and former executives were being audited by the Internal Revenue Service for the 2012 tax year regarding the treatment of their Company stock options under Section 409A of the Internal Revenue Code. In early 2017, the audits were settled and the Company has incurred an aggregate of $1.7 million for all liabilities relating to the 2012 tax year. The Company believes that any additional future liability that may arise related to this issue will not be material.third partythird-party claims relating to environmental and tax matters and various types of litigation. As of September 30, 2017,2021, we had not accrued any significant amounts for our indemnification obligations, and we are not aware of other circumstances that would likely lead to significant future indemnification obligations. We cannot determine with certainty the potential amount of future payments under the indemnification arrangements until events arise that would trigger a liability under the arrangements.five5 to ten10 years.10.Stockholders’ EquitydistributionsDistributions—The following table summarizessummarized the dividends paid in the periods presented: Dividend Per
Ordinary
Share Aggregate
Dividends
Paid Date of Record $ 0.85 $ 343 March 6, 2017 0.90 361 June 5, 2017 0.90 356 September 6, 2017 $ 2.65 $ 1,060 LYONDELLBASELL INDUSTRIES N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)Millions of dollars, except per share amounts Dividend Per Ordinary Share Aggregate Dividends Paid Date of Record March 2021 $ 1.05 $ 352 March 8, 2021 June 2021 1.13 378 June 7, 2021 September 2021 1.13 380 August 30, 2021 $ 3.31 $ 1,110 ProgramsAuthorization—In May 2017,2021, our shareholders approved a proposal to authorize us to repurchase up to an additional 10% of our outstanding34.0 million ordinary shares, through November 201828, 2022 (“May 20172021 Share Repurchase Program”Authorization”). As a result, the authorization, which superseded any prior repurchase authorizations. The timing and amount of the remaining unpurchased shares under the share repurchase program approved by our shareholders in May 2016 (“May 2016 Share Repurchase Program”) was superseded.Thesethese repurchases, which are determined at the discretionbased on our evaluation of our Management Board,market conditions and other factors, may be executed from time to time through open market or privately negotiated transactions. The repurchased shares, which are recorded at cost, are recordedclassified as Treasury stock and may be retired or used for general corporate purposes, including for various employee benefit and compensation plans. Nine Months Ended September 30, 2017 Shares
Repurchased Average
Purchase
Price Total Purchase
Price, Including
Commissions 3,501,084 $ 85.71 $ 300 6,516,917 83.54 545 10,018,001 $ 84.30 $ 845 Nine Months Ended September 30, 2016 Shares
Repurchased Average
Purchase
Price Total Purchase
Price, Including
Commissions 15,302,707 $ 80.15 $ 1,226 16,091,214 77.73 1,251 31,393,921 $ 78.91 $ 2,477 Due to the timing of settlements, totalMillions of dollars, except shares and per share amounts Shares
RepurchasedAverage
Purchase
PriceTotal Purchase Price, Including
Commissions and FeesFor nine months ended September 30, 2021: May 2021 Share Repurchase Authorization 953,681 $ 93.34 $ 89 For nine months ended September 30, 2020: September 2019 Share Repurchase Authorization 50,685 $ 78.93 $ 4 20172021 and 2016 was $8662020 were $78 million and $2,501$4 million, respectively. Nine Months Ended
September 30, 2017 2016 404,046,331 440,150,069 343,663 338,103 4,184 200 81,964 71,108 (10,018,001 ) (31,393,921 ) 394,458,141 409,165,559 LYONDELLBASELL INDUSTRIES N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued) Nine Months Ended
September 30, 2021 2020 Ordinary shares outstanding: Beginning balance 334,015,220 333,476,883 Share-based compensation 415,857 246,640 Employee stock purchase plan 149,956 245,521 Purchase of ordinary shares (953,681) (50,685) Ending balance 333,627,352 333,918,359 Nine Months Ended September 30, 2017 2016 174,389,139 138,285,201 (343,663 ) (338,103 ) 509 — (81,964 ) (71,108 ) 10,018,001 31,393,921 183,982,022 169,269,911 Nine Months Ended
September 30, 2021 2020 Ordinary shares held as treasury shares: Beginning balance 6,030,408 6,568,745 Share-based compensation (415,857) (246,640) Employee stock purchase plan (50,006) (245,521) Purchase of ordinary shares 953,681 50,685 Ending balance 6,518,226 6,127,269 Income (Loss)Loss—The components of, and after-tax changes in, Accumulated other comprehensive loss as of and for the nine months ended September 30, 20172021 and 20162020 are presented in the following table: Net Unrealized Net Holding Unrealized Gains Defined Holding (Losses) Pension Foreign Gains Attributable and Other Currency Financial (Losses) on to Equity Postretirement Translation Derivatives Investments Investees Benefit Plans Adjustments Total $ (75 ) $ 1 $ — $ (498 ) $ (939 ) $ (1,511 ) (187 ) (5 ) 14 — 143 (35 ) 167 — — 20 — 187 (20 ) (5 ) 14 20 143 152 $ (95 ) $ (4 ) $ 14 $ (478 ) $ (796 ) $ (1,359 ) $ (79 ) $ (5 ) $ — $ (428 ) $ (926 ) $ (1,438 ) (201 ) (7 ) — — 80 (128 ) 52 — — 15 7 74 (149 ) (7 ) — 15 87 (54 ) $ (228 ) $ (12 ) $ — $ (413 ) $ (839 ) $ (1,492 ) Millions of dollars Financial
DerivativesUnrealized
Gains on Available
-for-Sale
Debt SecuritiesDefined Benefit
Pension and Other
Postretirement
Benefit PlansForeign
Currency
Translation
AdjustmentsTotal Balance – December 31, 2020 $ (426) $ 1 $ (752) $ (766) $ (1,943) Other comprehensive income (loss) before reclassifications 311 (1) — (92) 218 Tax expense before reclassifications (69) — — (35) (104) Amounts reclassified from accumulated other comprehensive loss (142) — 66 — (76) Tax (expense) benefit 32 — (10) — 22 Net other comprehensive income (loss) 132 (1) 56 (127) 60 Balance – September 30, 2021 $ (294) $ — $ (696) $ (893) $ (1,883) STATEMENTS—STATEMENTS-(Continued)Millions of dollars Financial
DerivativesUnrealized
Gains on Available
-for-Sale
Debt SecuritiesDefined Benefit
Pension and Other
Postretirement
Benefit PlansForeign
Currency
Translation
AdjustmentsTotal Balance – December 31, 2019 $ (200) $ — $ (711) $ (873) $ (1,784) Other comprehensive income (loss) before reclassifications (447) 1 — (53) (499) Tax benefit before reclassifications 93 — — 6 99 Amounts reclassified from accumulated other comprehensive loss 84 — 42 — 126 Tax expense (19) — (11) — (30) Net other comprehensive income (loss) (289) 1 31 (47) (304) Balance – September 30, 2020 $ (489) $ 1 $ (680) $ (920) $ (2,088) Three Months Ended
September 30, Nine Months Ended
September 30, Affected line item on
the Consolidated
Statements of Income 2017 2016 2017 2016 $ 74 $ 5 $ 232 $ 52 Other income, net — 1 — 1 10 8 29 23 — 7 — 7 Other income, net 84 21 261 83 21 4 74 9 Provision for income taxes $ 63 $ 17 $ 187 $ 74 Amortization Three Months Ended
September 30,Nine Months Ended
September 30,Affected Line Item on
the Consolidated
Statements of IncomeMillions of dollars 2021 2020 2021 2020 Reclassification adjustments for: Financial derivatives: Foreign currency $ (60) $ 89 $ (128) $ 81 Interest expense Commodities (14) — (18) — Cost of sales Interest rates 1 1 4 3 Interest expense Income tax (expense) benefit 17 (22) 32 (19) Provision for income taxes Financial derivatives, net of tax (56) 68 (110) 65 Amortization of defined pension items: Prior service cost — 1 2 3 Other income (expense), net Actuarial loss 14 13 40 39 Other income (expense), net Settlement loss 20 — 24 — Other income (expense), net Income tax expense (6) (4) (10) (11) Provision for income taxes Defined pension items, net of tax 28 10 56 31 Total reclassifications, before tax (39) 104 (76) 126 Income tax (expense) benefit 11 (26) 22 (30) Provision for income taxes Total reclassifications, after tax $ (28) $ 78 $ (54) $ 96 Amount included in net income actuarial losscumulative perpetual special stock (“redeemable non-controlling interest stock”) issued by a consolidated subsidiary. As of September 30, 2021 and prior service cost is included inDecember 31, 2020, we had 115,374 shares of redeemable non-controlling interest stock outstanding. In February, May and August 2021, we paid cash dividends of $15.00 per share to our redeemable non-controlling interest shareholders of record as of January 15, 2021, April 15, 2021 and July 15, 2021. These dividends totaled $5 million for each of the computationnine months ended September 30, 2021 and 2020.isare based upon the weighted average number of shares of common stock outstanding during the periods. Diluted earnings per share includes the effect of certain stock option awards and other equity-based compensation awards. We have unvested restricted stock units that are considered participating securities for earnings per share. Three Months Ended September 30, 2017 2016 Continuing Discontinued Continuing Discontinued Operations Operations Operations Operations $ 1,058 $ (2 ) $ 955 $ (2 ) 1 — (1 ) — 1,059 (2 ) 954 (2 ) (1 ) — (1 ) — $ 1,058 $ (2 ) $ 953 $ (2 ) 395 395 413 413 — — 1 1 395 395 414 414 $ 2.67 $ — $ 2.31 $ (0.01 ) $ 2.67 $ — $ 2.31 $ (0.01 ) 0.4 0.4 0.4 0.4 $ 0.90 $ — $ 0.85 $ — Three Months Ended September 30, 2021 2020 Millions of dollars Continuing
OperationsDiscontinued
OperationsContinuing
OperationsDiscontinued
OperationsNet income (loss) $ 1,763 $ (1) $ 114 $ — Dividends on redeemable non-controlling interests (2) — (2) — Net income attributable to participating securities (4) — (1) — Net income (loss) attributable to ordinary shareholders – basic and diluted $ 1,757 $ (1) $ 111 $ — Millions of shares, except per share amounts Basic weighted average common stock outstanding 334 334 334 334 Effect of dilutive securities — — — — Potential dilutive shares 334 334 334 334 Earnings per share: Basic $ 5.25 $ — $ 0.33 $ — Diluted $ 5.25 $ — $ 0.33 $ — Nine Months Ended September 30, 2021 2020 Millions of dollars Continuing
OperationsDiscontinued
OperationsContinuing
OperationsDiscontinued
OperationsNet income (loss) $ 4,892 $ (1) $ 572 $ — Dividends on redeemable non-controlling interests (5) — (5) — Net income attributable to participating securities (12) — (2) — Net income (loss) attributable to ordinary shareholders – basic and diluted $ 4,875 $ (1) $ 565 $ — Millions of shares, except per share amounts Basic weighted average common stock outstanding 334 334 334 334 Effect of dilutive securities — — — — Potential dilutive shares 334 334 334 334 Earnings per share: Basic $ 14.58 $ — $ 1.69 $ — Diluted $ 14.57 $ — $ 1.69 $ — STATEMENTS—STATEMENTS-(Continued) Nine Months Ended September 30, 2017 2016 Continuing Discontinued Continuing Discontinued Operations Operations Operations Operations $ 2,997 $ (14 ) $ 3,077 $ (3 ) 2 — (1 ) — 2,999 (14 ) 3,076 (3 ) (3 ) — (3 ) — $ 2,996 $ (14 ) $ 3,073 $ (3 ) 400 400 423 423 — — 1 1 400 400 424 424 $ 7.49 $ (0.03 ) $ 7.26 $ (0.01 ) $ 7.49 $ (0.03 ) $ 7.24 $ (0.01 ) 0.4 0.4 0.4 0.4 $ 2.65 $ — $ 2.48 $ — LYONDELLBASELL INDUSTRIES N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)12.Segment and Related Informationthrough five operating segments, as shown below. We disclose the results of each of our operating segments in accordance with ASC 280,Segment Reporting. Each of our operating segments is managed by a senior executive reporting directlyexecutives who report to our Chief Executive Officer, the chief operating decision maker. Discrete financial information is available for each of the segments, and our Chief Executive Officer uses the operating results of each of the operating segments for performance evaluation and resource allocation. The activities of each of our segments from which they earn revenues and incur expenses are described below:•Olefins and Polyolefins–Americas (“O&P–Americas”). Our O&P–Americas segment produces and markets olefins and co-products, polyethylene and polypropylene.•Olefins and Polyolefins–Europe, Asia, International (“O&P–EAI”). Our O&P–EAI segment produces and markets olefins and co-products, polyethylene, and polypropylene, including polypropylene compounds.•Intermediates and Derivatives (“I&D”). Our I&D segment produces and markets propylene oxide and its co-products and derivatives, oxyfuels and related products and intermediate chemicals such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.•Refining. Our Refining segment refines heavy, high-sulfur crude oils and other crude oils of varied types and sources available on the U.S. Gulf Coast into refined products, including gasoline and distillates.•Technology. Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.segments’ profitabilitysegments, and therefore, in accordance with ASC 280,Segment Reporting, we have presented EBITDA for all segments. We define EBITDA as earnings before interest, income taxes, and depreciation and amortization.Intersegmentare included in “Other.”such as foreign exchange gains or losses and components of pension and other postretirement benefit costs other than service costs. Sales between segments are made primarily at prices approximating prevailing market prices.LYONDELLBASELL INDUSTRIES N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)tabletables for the periods presented: Three Months Ended September 30, 2017 O&P–
Americas O&P–
EAI I&D Refining Technology Other Total $ 1,817 $ 3,096 $ 2,043 $ 1,491 $ 69 $ — $ 8,516 632 56 34 179 29 (930 ) — 2,449 3,152 2,077 1,670 98 (930 ) 8,516 8 69 4 — — — 81 616 698 402 58 47 — 1,821 Three Months Ended September 30, 2016 O&P–
Americas O&P–
EAI I&D Refining Technology Other Total $ 1,740 $ 2,585 $ 1,769 $ 1,192 $ 80 $ (1 ) $ 7,365 602 49 36 138 22 (847 ) — 2,342 2,634 1,805 1,330 102 (848 ) 7,365 12 67 2 — — — 81 682 584 304 (10 ) 45 1 1,606 Nine Months Ended September 30, 2017 O&P–
Americas O&P–
EAI I&D Refining Technology Other Total $ 5,631 $ 9,029 $ 6,142 $ 4,306 $ 241 $ — $ 25,349 1,969 155 99 430 84 (2,737 ) — 7,600 9,184 6,241 4,736 325 (2,737 ) 25,349 33 202 5 — — — 240 2,198 1,926 1,080 53 155 (4 ) 5,408 Three Months Ended September 30, 2021 Millions of dollars O&P–
AmericasO&P–
EAII&D APS Refining Technology Other Total Sales and other operating revenues: Customers $ 3,071 $ 3,262 $ 2,851 $ 1,280 $ 2,050 $ 186 $ — $ 12,700 Intersegment 1,337 196 43 6 238 52 (1,872) — 4,408 3,458 2,894 1,286 2,288 238 (1,872) 12,700 Income from equity investments 29 66 9 — — — — 104 EBITDA 1,568 474 348 121 41 155 (16) 2,691 Capital expenditures 72 54 327 20 17 22 2 514 STATEMENTS—STATEMENTS-(Continued) Nine Months Ended September 30, 2016 O&P–
Americas O&P–
EAI I&D Refining Technology Other Total $ 4,978 $ 7,805 $ 5,186 $ 3,179 $ 288 $ — $ 21,436 1,690 128 90 395 75 (2,378 ) — 6,668 7,933 5,276 3,574 363 (2,378 ) 21,436 54 232 3 — — — 289 2,314 1,669 1,027 (9 ) 201 (6 ) 5,196 Our O&P–Americas results Three Months Ended September 30, 2020 Millions of dollars O&P–
AmericasO&P–
EAII&D APS Refining Technology Other Total Sales and other operating revenues: Customers $ 1,268 $ 1,837 $ 1,498 $ 1,003 $ 1,003 $ 167 $ — $ 6,776 Intersegment 572 145 40 1 98 26 (882) — 1,840 1,982 1,538 1,004 1,101 193 (882) 6,776 Income from equity investments 15 40 7 — — — — 62 LCM inventory valuation benefit (70) (17) (22) (40) (11) — — (160) EBITDA 474 148 267 157 (692) 111 1 466 Capital expenditures 130 38 103 18 15 24 97 425 Nine Months Ended September 30, 2021 Millions of dollars O&P–
AmericasO&P–
EAII&D APS Refining Technology Other Total Sales and other operating revenues: Customers $ 7,770 $ 9,342 $ 7,086 $ 3,882 $ 4,784 $ 479 $ — $ 33,343 Intersegment 3,220 618 160 10 575 107 (4,690) — 10,990 9,960 7,246 3,892 5,359 586 (4,690) 33,343 Income from equity investments 94 263 32 — — — — 389 EBITDA 4,011 1,594 1,126 385 (150) 341 (13) 7,294 Capital expenditures 219 141 717 55 62 64 27 1,285 Nine Months Ended September 30, 2020 Millions of dollars O&P–
AmericasO&P–
EAII&D APS Refining Technology Other Total Sales and other operating revenues: Customers $ 3,514 $ 5,543 $ 4,370 $ 2,796 $ 3,193 $ 400 $ — $ 19,816 Intersegment 1,551 365 95 9 275 92 (2,387) — 5,065 5,908 4,465 2,805 3,468 492 (2,387) 19,816 Income (loss) from equity investments 24 88 12 (1) — — — 123 LCM inventory valuation charge 3 53 76 29 2 — — 163 EBITDA 1,088 522 571 226 (799) 279 (15) 1,872 Capital expenditures 524 114 761 41 52 80 101 1,673 first nine months of 2017 includeasset group carrying value exceeded its undiscounted estimated pre-tax cash flows and fair value. As a $31 million gain on the first quarter sale of our Lake Charles, Louisiana site. EBITDA for our O&P–EAI segmentresult, we recognized a non-cash impairment charge in the third quarter and first nine months of 20172020 of $582 million, which includes a $108$570 million gain onimpairment of property, plant and equipment and a $12 million impairment of intangible assets. The fair value measurement for the asset group is a Level 3 within the fair value hierarchy.27% interest in Geosel andHouston refinery. While the first nine monthsrefinery is a valuable asset, we believe that it may be even more valuable as part of 2017 also includes a $21 million non-cash gain stemming fromlarger refining system. Any strategic option pursued for the elimination of an obligation associated with a lease.In the first nine months of 2016, our O&P–Americas and O&P–EAI segments also benefited from gains of $57 million and $21 million, respectively, relatedHouston refinery remains subject to the saleapproval of our wholly owned Argentine subsidiary, Petroken Petroquimica Ensenada S.A. Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 $ 1,821 $ 1,605 $ 5,412 $ 5,202 — 1 (4 ) (6 ) (294 ) (257 ) (876 ) (791 ) (94 ) (72 ) (396 ) (237 ) 5 4 15 13 $ 1,438 $ 1,281 $ 4,151 $ 4,181 Three Months Ended
September 30,Nine Months Ended
September 30,Millions of dollars 2021 2020 2021 2020 EBITDA: Total segment EBITDA $ 2,707 $ 465 $ 7,307 $ 1,887 Other EBITDA (16) 1 (13) (15) Less: Depreciation and amortization expense (351) (358) (1,016) (1,056) Interest expense (126) (122) (366) (336) Add: Interest income 1 3 8 10 Income (loss) from continuing operations before income taxes $ 2,215 $ (11) $ 5,920 $ 490
subsidiaries (“LyondellBasell N.V.”). Millions of dollars Sales and other operating revenues Cost of sales Selling, general and administrative expenses Research and development expenses Operating income Interest expense Interest income Other income, net Income from equity investments Provision for income taxes Income from continuing operations Loss from discontinued operations, net of tax Net income 2020. Average sales prices in the third quarter and first nine months of 2021. 2020. Results for each of our business segments are discussed further in the 2020. Our effective income Statements. 2021 compared to the third quarter of 2020. in the first nine months of 2020, primarily due to changes in the economy impacting late in the first quarter of 2020. Millions of dollars Sales and other operating revenues: O&P–Americas segment O&P–EAI segment I&D segment Refining segment Technology segment Other, including intersegment eliminations Total Operating income (loss): O&P–Americas segment O&P–EAI segment I&D segment Refining segment Technology segment Other, including intersegment eliminations Total Depreciation and amortization: O&P–Americas segment O&P–EAI segment I&D segment Refining segment Technology segment Total Income from equity investments: O&P–Americas segment O&P–EAI segment I&D segment Total Millions of dollars Other income (expense), net: O&P–Americas segment O&P–EAI segment I&D segment Refining segment Other, including intersegment eliminations Total EBITDA: O&P–Americas segment O&P–EAI segment I&D segment Refining segment Technology segment Other, including intersegment eliminations Total below: polyolefin margin improvements. Millions of dollars Sales and other operating revenues Income from equity investments EBITDA hydrowax. Millions of dollars Sales and other operating revenues Income from equity investments EBITDA 2020. Average sales prices in the third quarter and first nine months of recovery. Millions of dollars Sales and other operating revenues Income from equity investments EBITDA 2020. Higher average sales prices resulted in a 82% and 61% increase in revenue in the third quarter and first nine months of 2021 relative to the first nine months of 2020, primarily due to higher compounding and solutions volumes. Millions of dollars Sales and other operating revenues EBITDA Heavy crude processing rates, thousands of barrels per day Market margins, dollars per barrel Light crude oil – 2-1-1 Light crude – Maya differential Total Maya 2-1-1 2020. Higher product prices led to a revenue volumes. Millions of dollars Sales and other operating revenues EBITDA Millions of dollars Source (use) of cash: Operating activities Investing activities Financing activities segments. Millions of dollars Capital expenditures by segment: O&P–Americas O&P–EAI I&D Refining Technology Other Consolidated capital expenditures of continuing operations spending by segment. certain forward-starting interest rate swaps. outstanding under this facility. In debt for the year to be up to $4 billion. other factors. In connection with such repurchases or redemptions, we may incur cash and non-cash charges, which could be material in the period in which they are incurred. months of tight industry supply. opportunistic share repurchases. and analysis should be read in conjunction with the information contained in our Consolidated Financial Statements, and the accompanying notes elsewhere in this report. When we useUnless otherwise indicated, the terms “we,”“Company”, “we”, “us,” “our” or similar words in this discussion, unless the context otherwise requires, we are referringused to refer to LyondellBasell Industries N.V. andtogether with its consolidated subsidiaries.Our portfolioglobal businesses demonstrated strong performance in the third quarter with the improvement in our I&D segment and continued strong results from our O&P–EAI segment. Texas Gulf Coast production losses due to the impacts of Hurricane Harvey on our operations in the third quarter of 2017 were partly offset by margin improvements and, in many cases, were similar to or less than production constraints in the comparable periods of 2016.Significant items that affected our results duringbusinesses. During the third quarter and first nine months of 20172021 relative to the third quarter and first nine months of 2016 include:Lower O&P–Americas results2020, EBITDA increased largely due to a declinemargin improvements in olefinsour O&P—Americas, O&P—EAI, I&D and Refining segments. While results improved for our I&D segment, this segment was impacted by lost volume in connection with downtime in our acetyls business. Increasing mobility has improved demand and margins partly offsetfor transportation fuels produced by higher polyethylene margins inour Refining segment.third quarterbenefits of 2017; and lower polyolefins margins inrecent growth investments enabled us to repay $2,378 million of debt during the first nine months of 2017, partly offset by increased olefins volumes;Strong O&P–EAI results reflect higher polyolefins volumes2021 and an additional $650 million in the third quarter of 2017, offset in part by declines in olefinsOctober 2021. Additionally, we have resumed our share repurchase activity and polyethylene margins. Higher olefins margins and higher volumes in the first nine months of 2017, offset in part by lower polyethylene margins;Higher I&D segment results with strong intermediate chemicals margins in both 2017 periods, partly offset by impacts of turnaround activities; andImproved Refining segment results due to higher crude oil processing rates and industry margins, partly offset in the first nine months of 2017 by higher maintenance-related fixed costs.Other noteworthy items since the beginning of the year include the following:In September 2017, our senior unsecured debt rating was raised by Standard and Poor’s Rating Services to BBB+ from BBB, matching our corporate investment-grade credit rating;In July 2017, we announced our final investment decision to build a world-scale PO/TBA plant in Texas with a capacity ofpurchased approximately 1 billion pounds of PO and 2.2 billion pounds of TBA. Construction is expected to commence in the second half of 2018;Increased quarterly dividend from $0.85 to $0.90 cents in May 2017;Issuance of $1,000 million of 3.5% guaranteed notes due 2027 in March 2017, used to redeem $1,000shares for $89 million aggregate principal amount of our outstanding 5% senior notes due 2019; andRepurchases of approximately 3 million and 10 million of our outstanding ordinary shares during the third quarter.first nine months of 2017, respectively.styrene monomer unit in China. Three Months Ended
September 30, Nine Months Ended
September 30, 2017 2016 2017 2016 $ 8,516 $ 7,365 $ 25,349 $ 21,436 6,939 5,903 20,531 16,771 218 188 622 580 27 25 77 73 1,332 1,249 4,119 4,012 (94 ) (72 ) (396 ) (237 ) 5 4 15 13 114 19 173 104 81 81 240 289 380 326 1,154 1,104 1,058 955 2,997 3,077 (2 ) (2 ) (14 ) (3 ) $ 1,056 $ 953 $ 2,983 $ 3,074 Three Months Ended
September 30,Nine Months Ended
September 30,Millions of dollars 2021 2020 2021 2020 Sales and other operating revenues $ 12,700 $ 6,776 $ 33,343 $ 19,816 Cost of sales 10,109 5,885 26,463 17,647 Impairment of long-lived assets — 582 — 582 Selling, general and administrative expenses 313 259 927 842 Research and development expenses 30 27 91 79 Operating income 2,248 23 5,862 666 Interest expense (126) (122) (366) (336) Interest income 1 3 8 10 Other (expense) income, net (12) 23 27 27 Income from equity investments 104 62 389 123 Income (loss) from continuing operations before income taxes 2,215 (11) 5,920 490 Provision for (benefit from) income taxes 452 (125) 1,028 (82) Income from continuing operations 1,763 114 4,892 572 Loss from discontinued operations, net of tax (1) — (1) — Net income $ 1,762 $ 114 $ 4,891 $ 572 $1,151$5,924 million, or 16%87%, in the third quarter of 20172021 compared to the third quarter of 20162020 and by $3,913$13,527 million, or 18%68%, in the first nine months of 20172021 compared to the first nine months of 2016.20172021 were higher across mostfor many of our products as sales prices generally correlate with crude oil prices, which on average, increased comparedrelative to the corresponding periods in 2016.2020. These higher prices led to increasesa 77% and 63% increase in revenues of 9% and 15%, respectively. Higher volumes in our O&P–Americas, O&P-EAI and Refining segments, which were partly offset by lower I&D segment volumes, led to revenue increases in the third quarter and first nine months of 20172021, respectively. Higher sales volumes, driven by 5%increased demand, resulted in a revenue increase of 10% and 3%, in the third quarter and first nine months of 2021, respectively. Favorable foreign exchange impacts resulted in a 2% revenue increase inof 2% during the third quarterfirst nine months of 2017.$1,036$4,224 million, or 18%72%, in the third quarter of 20172021 compared to the third quarter of 20162020 and by $3,760$8,816 million, or 22%50%, in the first nine months of 20172021 compared to the first nine months of 20162020, respectively. This increase primarily duerelated to increases inhigher feedstock and energy costs.Operating Income—Operating income increased$83 millionthe recovery of market pricing for many of our raw material and finished goods inventories during the quarter.20172020 of $582 million.20162020 and by $107$5,196 million, or 780%, in the first nine months of 20172021 compared to the first nine months of 2016.Operating income for2020. In the third quarter of 20172021, operating income in our O&P–Americas, Refining, O&P–EAI, I&D and Technology segments increased by $1,094 million, $758 million, $309 million, $67 million and $43 million, respectively, relative to the third quarter of 2016 by $89 million and $66 million in our I&D and Refining segments, respectively. These favorable impacts2020. The increases were partially offset by a decline of $85$22 million in our O&P–Americas segment.Operating income forAPS segment in the third quarter of 2021 compared to the third quarter of 2020. In the first nine months of 20172021, operating income in our O&P–Americas, O&P–EAI, Refining, I&D, APS and Technology segments increased relativeby $2,831 million, $903 million, $731 million, $493 million, $196 million and $56 million, respectively, compared to the first nine months of 2016 by $182 million, $46 million and $58 million in our O&P–EAI, I&D and Refining segments. These favorable impacts were offset by declines of $141 million and $45 million, respectively, in our O&P–Americas and Technology segments.“Segment Analysis”Segment Analysis section below.Interest ExpenseInterest expenseIncome from our equity investments increased by $22$42 million, or 68%, in the third quarter of 20172021 compared to the third quarter of 20162020 and by $159$266 million, or 216%, in the first nine months of 20172021 compared to the first nine months of 2016.In the first nine months of 2017, we recognized charges totaling $113 million related to the March 2017 redemption of $1,000 million of our outstanding 5% senior notes due 2019. These charges included $65 million of prepayment premiums, $44 million for adjustments associated with fair value hedges and $4 million for the write-off of associated unamortized debt issuance costs. For additional information related to the repayment of debt, see Note 5.Excluding the effect of interest rate hedges, reductions in interest expense of $13 million and $26 million in the third quarter and first nine months of 2017 related to the first quarter 2017 redemption of our 5% senior notes due 2019 were substantially offset in the third quarter and first nine months of 2017 by increased interest expense of $10 million and $24 million, respectively, related to debt issuances in March 2017 of our 3.5% guaranteed notes due 2027 and in March 2016 of our 1.875% guaranteed notes due 2022. A reduction in the amount of interest capitalized in the third quarter and first nine months of 2017 resulted in increases in interest expense of $10 million and $14 million, relative to the corresponding periods in 2016. Charges from our fair value hedges resulted in increases of interest expense of $13 million and $35 million during the third quarter and first nine months of 2017.Other Income, Net—Other income, net of $114 million in the third quarter of 2017 reflects an2020. The increase of $95 million over the prior year period largelywas primarily due to a $108 million gain on the sale of our 27% interest in our Geosel joint venture, which was recognized by our O&P–EAI segment.Other income, net of $173 million in the first nine months of 2017 increased by $69 million relative to the same period in 2016. In the first nine months of 2017, we recognized the gain on the sale of our joint venture discussed above, a $31 million gain on the sale of our Lake Charles, Louisiana site, which was recognized by our O&P–Americas segment, and a $21 million non-cash gainincreases in our O&P–EAI segment relateddriven primarily by higher margins due to the elimination of an obligation associated with a lease. In the first nine months of 2016, we recognized a $78 million gain related to the sale of our wholly owned Argentine subsidiary. We allocated $57 million and $21 million of this gain to our O&P–Americas and O&P–EAI segments, respectively.Equity Income—increased demand.from our equity investments declined by $49 million in the first nine months of 2017 compared to the first nine months of 2016. This decline was relative to very strong 2016 results from our joint ventures in Mexico, Poland and Saudi Arabia.Income TaxTaxes20172021 was 26.4%20.4% compared with 25.4%1,136.4% for the third quarter of 2016 and for the first nine months of 2017 was 27.8% compared with 26.4% for the first nine months of 2016. tax rate fluctuates based on, among other factors, changes in pretax income in countries with varying statutory tax rates, the U.S. domestic production activity deduction, changes in valuation allowances, changes in foreign exchange gains/losses, the amount of exempt income, and changes in unrecognized tax benefits associated with uncertain tax positions.Our exempt income primarily includes interest income and equity earnings of joint ventures. The interest income is earned by certain of our European subsidiaries through intercompany financings and is either untaxed or taxed at rates substantially lower than the U.S. statutory rate. The equity earnings are attributable to our joint ventures and these earnings when paid through dividends to certain European subsidiaries are eligible for participation exemptions, which exempt the dividend payments from all or portions of normal statutory income tax rates. We currently anticipate the favorable treatment for the interest income and dividends to continue in the near term; however, this treatment is based on current law and tax rulings, which could change. The foreign exchange gains/losses have a permanent impact on our effective income tax rate that can cause unpredictable movement in our effective income tax rate.Compared with the third quarter of 2016, the higher effective tax rate for the third quarter of 2017 was primarily attributable to changes in pretax income in countries with varying statutory tax rates (1.1%), prior year adjustments to our deferred tax liabilities (1.1%), and an increase in foreign currency exchange gains (0.5%), partially offset by an increase in exempt income (-0.9%) and an increase in U.S. domestic production activity deduction (-0.9%). Compared with the first nine months of 2016, the higher effective tax rate for the first nine months of 20172021 was 17.4% compared with -16.7% for the first nine months of 2020. Changes in our effective income tax rate were primarily attributable todriven by changes in valuation allowances (0.6%), changespre-tax income as well as a tax benefit recognized on the non-cash impairment of our Houston refinery in pretax income in countries with varying statutory tax rates (0.4%), a decrease in exempt income (0.4%), and prior year adjustments to our deferred tax liabilities (0.3%), partially offset by an increase in U.S. domestic production activity deduction (-0.3%).We monitorthe third quarter of 2020. Our income tax developments (including, for example, the U.S. tax reform proposals and the European Union’s state aid investigations)results are discussed further in countries where we conduct business. Recently, there has been an increase in attention, both in the U.K. and globally,Note 8 to the tax practices of multinational companies, including proposals by the Organization for Economic Cooperation and Development with respect to base erosion and profit shifting. Such attention may result in legislative changes that could affect our tax rate. Management does not believe that recent changes in income tax laws will have a material impact on our Consolidated Financial Statements, although new or proposed changes to tax laws could affect our tax liabilities in the future. In October 2016, the U.S. Treasury issued final Section 385 debt-equity regulations that may impact our internal financings in future years. Pursuant to an Executive Order, the Treasury Department reviewed these regulations and recently concluded to partially retain the regulations pending potential enactment of U.S. tax reform, which is expected to make it possible for the regulations to be revoked.$139$1,443 million in the third quarter of 20172021 compared to the third quarter of 20162020 and by $115$4,683 million in the first nine months of 20172021 compared to the first nine months of 2016. The third quarter 2017 increase reflects2020. These changes were primarily due to higher net income inpartially offset by the third quarter of 2017 and the favorablenet unfavorable impacts of financial derivativeunrealized changes in foreign currency translation adjustments. The increaseFinancial derivatives activity increased comprehensive income by $421 million in the first nine months of 2017 reflects2021 compared to the favorable impactsfirst nine months of financial derivative adjustments2020, and decreased comprehensive income by $40 million in the net favorable impactthird quarter of unrealized net changes in foreign currency translation adjustments, partially offset by lower net income.2017,2021, the cumulative after-tax effects of our derivatives designated as cash flow hedges were lossesnet gains of $100$35 million and $260$132 million, respectively. The euro strengthened against the U.S. dollarPre-tax gains of $17 million and $117 million related to forward-starting interest rate swaps were driven by periodic changes in benchmark interest rates in the third quarter and first nine months of 2017 resulting2021, respectively. The fluctuations of the U.S. dollar against the euro and the periodic changes in pre-tax losses of $98 million and $233 million, respectively,benchmark interest rates, in the third quarter and first nine months of 20172021, resulted in pre-tax gains of $63 million and $127 million, respectively, related to our cross-currency swaps. Pre-tax gainslosses of $74$60 million and $232$128 million related to our cross-currency swaps were reclassification adjustments included in net incomereclassified from Accumulated other comprehensive loss to Interest expense in the third quarter and first nine months of 2017,2021, respectively. Unrealized pre-tax losses of $5 million and $23 million inThe remaining change pertains to our commodity cash flow hedges. third quarter and first nine months of 2017, respectively,2020, the cumulative after-tax effects of our derivatives designated as cash flow hedges were net losses of $289 million. Included in this amount, were pre-tax losses of $430 million related to forward-starting interest rate swaps, were driven by increasesthe significant decline in benchmark interest rates during those periods.increased duringweakened in the third quarter and the first nine months of 20172021, resulting in net gains aslosses reflected in the Consolidated Statements of Comprehensive Income. TheseThe net gainslosses related to unrealized changes in foreign currency translation impacts include pre-tax lossesgains of $87$72 million and $265$147 million in the third quarter and first nine months of 2017,2021, respectively, which represent the effective portion of our net investment hedges.“Other.”“Other”. For additional information related to our operating segments, as well as a reconciliation of EBITDA to its nearest GAAP measure, Income from continuing operations before income taxes, see Note 12Segment and Related Information, to our Consolidated Financial Statements.Our continuing operations are divided into five reportable segments: O&P–Americas; O&P–EAI; I&D; Refining; and Technology. below. Three Months Ended
September 30, Nine Months Ended
September 30, 2017 2016 2017 2016 $ 2,449 $ 2,342 $ 7,600 $ 6,668 3,152 2,634 9,184 7,933 2,077 1,805 6,241 5,276 1,670 1,330 4,736 3,574 98 102 325 363 (930 ) (848 ) (2,737 ) (2,378 ) $ 8,516 $ 7,365 $ 25,349 $ 21,436 $ 497 $ 582 $ 1,794 $ 1,935 460 447 1,410 1,228 329 240 868 822 10 (56 ) (81 ) (139 ) 36 35 125 170 — 1 3 (4 ) $ 1,332 $ 1,249 $ 4,119 $ 4,012 $ 105 $ 87 $ 330 $ 265 60 58 177 171 69 62 206 201 49 40 133 123 11 10 30 31 $ 294 $ 257 $ 876 $ 791 $ 8 $ 12 $ 33 $ 54 69 67 202 232 4 2 5 3 $ 81 $ 81 $ 240 $ 289 Three Months Ended
September 30, Nine Months Ended
September 30, 2017 2016 2017 2016 $ 6 $ 1 $ 41 $ 60 109 12 137 38 — — 1 1 (1 ) 6 1 7 — — (7 ) (2 ) $ 114 $ 19 $ 173 $ 104 $ 616 $ 682 $ 2,198 $ 2,314 698 584 1,926 1,669 402 304 1,080 1,027 58 (10 ) 53 (9 ) 47 45 155 201 — 1 (4 ) (6 ) $ 1,821 $ 1,606 $ 5,408 $ 5,196 Three Months Ended
September 30,Nine Months Ended
September 30,Millions of dollars 2021 2020 2021 2020 Sales and other operating revenues: O&P–Americas segment $ 4,408 $ 1,840 $ 10,990 $ 5,065 O&P–EAI segment 3,458 1,982 9,960 5,908 I&D segment 2,894 1,538 7,246 4,465 APS segment 1,286 1,004 3,892 2,805 Refining segment 2,288 1,101 5,359 3,468 Technology segment 238 193 586 492 Other, including intersegment eliminations (1,872) (882) (4,690) (2,387) Total $ 12,700 $ 6,776 $ 33,343 $ 19,816 Operating income (loss): O&P–Americas segment $ 1,403 $ 309 $ 3,485 $ 654 O&P–EAI segment 361 52 1,171 268 I&D segment 247 180 828 335 APS segment 94 116 299 103 Refining segment 25 (733) (200) (931) Technology segment 144 101 308 252 Other, including intersegment eliminations (26) (2) (29) (15) Total $ 2,248 $ 23 $ 5,862 $ 666 Depreciation and amortization: O&P–Americas segment $ 142 $ 134 $ 427 $ 391 O&P–EAI segment 47 55 150 161 I&D segment 103 79 264 223 APS segment 28 40 83 123 Refining segment 20 40 58 131 Technology segment 11 10 34 27 Total $ 351 $ 358 $ 1,016 $ 1,056 Income (loss) from equity investments: O&P–Americas segment $ 29 $ 15 $ 94 $ 24 O&P–EAI segment 66 40 263 88 I&D segment 9 7 32 12 APS segment — — — (1) Total $ 104 $ 62 $ 389 $ 123 Three Months Ended
September 30,Nine Months Ended
September 30,Millions of dollars 2021 2020 2021 2020 Other (expense) income, net: O&P–Americas segment $ (6) $ 16 $ 5 $ 19 O&P–EAI segment — 1 10 5 I&D segment (11) 1 2 1 APS segment (1) 1 3 1 Refining segment (4) 1 (8) 1 Technology segment — — (1) — Other, including intersegment eliminations 10 3 16 — Total $ (12) $ 23 $ 27 $ 27 EBITDA: O&P–Americas segment $ 1,568 $ 474 $ 4,011 $ 1,088 O&P–EAI segment 474 148 1,594 522 I&D segment 348 267 1,126 571 APS segment 121 157 385 226 Refining segment 41 (692) (150) (799) Technology segment 155 111 341 279 Other, including intersegment eliminations (16) 1 (13) (15) Total $ 2,691 $ 466 $ 7,294 $ 1,872 Third quarter 2017 EBITDA decreased due to lower olefins margins, partly offset by higher polyethylene margins compared to the third quarter of 2016. EBITDA for the first nine months of 2017 declined due to lower polyolefins and olefins margins and higher fixed costs, partially offset by higher olefins volumes. EBITDA for the first nine months of 2017 also included a $31 million gain on the sale of our Lake Charles, Louisiana, site. EBITDA for the first nine months of 2016 included a $57 million gain on the sale of our wholly owned Argentine subsidiary.Ethylene Raw Materials—Production economics for the industry have favored natural gas liquids (“NGLs”)improved in recent years. While ethane continues to be the preferred U.S. olefins feedstock over time, there were periods during the third quarter and first nine months of 2017 when crude oil based liquids (“heavy liquids”), had comparable or favored economics. These favorable economics resulted from co-product price increases, a more significant component of heavy liquid economics than for ethane, which outpaced feedstock price increases. We produced approximately 85% and 87% of our U.S. ethylene production from NGLs during2021 relative to the third quarters of 2017quarter and 2016, respectively, and 87% and 88%, respectively, during the first nine months of 20172020 driven by olefin and 2016. Three Months Ended
September 30, Nine Months Ended
September 30, 2017 2016 2017 2016 $ 2,449 $ 2,342 $ 7,600 $ 6,668 8 12 33 54 616 682 2,198 2,314 Three Months Ended
September 30,Nine Months Ended
September 30,Millions of dollars 2021 2020 2021 2020 Sales and other operating revenues $ 4,408 $ 1,840 $ 10,990 $ 5,065 Income from equity investments 29 15 94 24 EBITDA 1,568 474 4,011 1,088 $107$2,568 million, or 5%140%, in the third quarter of 20172021 compared to the third quarter of 20162020 and by $932$5,925 million, or 14%117%, in the first nine months of 20172021 compared to the first nine months of 2016.Average2020. Higher average sales prices for most products increasedresulted in a 120% and 103% increase in revenue in the third quarter and first nine months of 2017, consistent2021, respectively, primarily driven by tight market conditions. Volume improvements resulted in a revenue increase of 20% and 14% in the third quarter and first nine months of 2021, respectively, due to improved demand in combination with industry-wide supply constraints.that are correlated withof ethylene and polymers.pricethird quarter of crude oil, which on average2020. The absence of similar adjustments in the third quarter and first nine months of 2021 resulted in a 13% and 6% change in EBITDA, respectively.2016. These2020 mainly as a result of higher sales prices were responsible for increasesmargins and equity income.revenues of 2% and 12%our EAI segment’s ethylene crackers is naphtha, in the third quarter and first nine months of 2017, respectively.Better product availability compared to the third quarter2021 and first nine months of 2016, which was negatively affected by expansion at our Corpus Christi, Texas facility and turnaround activities, led to higher olefins sales volumes. These increased volumes, which were partially offset by a decrease in olefins and polyolefins sales volumes resulting from reduced production related to Hurricane Harvey, were responsible for revenue increases of 3% and 2%, respectively, in the third quarter and first nine months of 2017.EBITDA—EBITDA decreased by $66 million, or 10%, in the third quarter of 2017 compared to the third quarter of 2016 and by $116 million, or 5%, in the first nine months of 2017 compared to the first nine months of 2016.Margins in the third quarter were lower than the prior year period due to a 6 cents per pound decline in olefins spreads driven equally by lower average ethylene sales prices and increased cost of ethylene production. This decline was offset in part by a 5 cents per pound increase in polyethylene spreads due to the lower cost of ethylene feedstock. This net decrease in margins resulted in a 7% reduction in third quarter 2017 EBITDA. The decline in polyolefins volumes in the third quarter of 2017 due to reduced production resulting from hurricane-related downtime at our Texas Gulf Coast facilities, including the shutdown of our La Porte, Texas facility, led to an additional 2% decline in EBITDA.In the first nine months of 2017, margins were lower compared to the first nine months of 2016 largely due to decreases in olefins and polypropylene spreads of 1 cent per pound and 6 cents per pound, respectively. These lower margins, which primarily reflect the impact2020 approximately 35% of the increased costraw materials used in our crackers were advantaged feedstocks, which consisted primarily of ethylenebutane and propylene feedstocks, resulted in an 8% decline in EBITDA compared to the first nine months of 2016. Lower income from our equity investments relative to the prior year period resulted in a 1% decline in EBITDA. The net impact of the gain on sale of our wholly owned Argentine subsidiary in the first quarter of 2016 and the first quarter 2017 gain on sale of the Lake Charles, Louisiana site also resulted in a 1% decline in EBITDA compared to the prior year. These decreases were partly offset by a 5% improvement in EBITDA primarily because of the higher olefins volumes in the first nine months 2017 discussed above.Olefins and Polyolefins–Europe, Asia, International SegmentOverview—Third quarter 2017 EBITDA was higher relative to the third quarter of 2016 due to the impacts of higher polyolefins volumes and favorable foreign exchange, partially offset by lower margins for olefins and polyethylene. EBITDA also improved in the first nine months of 2017 over the corresponding period in 2016. This improvement was driven by higher olefins margins and the impact of higher volumes across most products, partly offset by lower polyethylene margins and lower income from our equity investments.EBITDA in the first nine months of 2017 includes a $108 million gain on the third quarter 2017 sale of our 27% interest in Geosel and the beneficial impact of $21 million related to the elimination of an obligation associated with a lease. In the first nine months of 2016, EBITDA reflected gains totaling $11 million from the sales of our joint venture in Japan and idled assets in Australia recognized in the third quarter and a $21 million gain from the sale of our wholly owned Argentine subsidiary. Three Months Ended
September 30, Nine Months Ended
September 30, 2017 2016 2017 2016 $ 3,152 $ 2,634 $ 9,184 $ 7,933 69 67 202 232 698 584 1,926 1,669 Three Months Ended
September 30,Nine Months Ended
September 30,Millions of dollars 2021 2020 2021 2020 Sales and other operating revenues $ 3,458 $ 1,982 $ 9,960 $ 5,908 Income from equity investments 66 40 263 88 EBITDA 474 148 1,594 522 $518$1,476 million, or 20%74%, in the third quarter of 20172021 compared to the third quarter of 20162020 and by $1,251$4,052 million, or 16%69%, in the first nine months of 20172021 compared to the first nine months of 2016.20172021 were higher across most products as sales prices generally correlate with crude oil prices, which on average, increased compared to the third quarter and first nine months of 2016.same period in 2020. These higher average sales prices were responsible for a revenue increasesincrease of 5%65% and 12%, respectively,53% in the third quarter and first nine months of 2017. Better product availability2021, respectively. Volume improvements resulted in a revenue increase of 8% and 11% in the third quarter and first nine months of 2021, respectively, primarily due to strong demand in combination with tight market supply. Favorable foreign exchange impacts resulted in a revenue increase of 1% and 5% in the third quarter and first nine months of 2021, respectively.2016, which was affected by turnaround activity and inventory requirements, led to higher sales volumes across most products. These increased volumes resulted in revenue increases of 11% and 4%, respectively, in the third quarter and first nine months of 2017.Foreign exchange impacts that, on average, were favorable for the third quarter of 2017 resulted in a revenue increase of 4% compared to the third quarter of 2016.EBITDA—EBITDA increased by $114 million, or 20%, in the third quarter of 2017 compared to the third quarter of 2016, and by $257 million, or 15%, in the first nine months of 2017 compared to the first nine months of 2016.In the third quarter of 2017, higher volumes across most products and favorable foreign exchange impacts led to increases in EBITDA of 8% and 4%, respectively. The combined impact of the third quarter 2017 gain on sale of our interest in Geosel and the absence of the third quarter 2016 gains related to the sales of our joint venture in Japan and idled assets in Australia also resulted in a 17% increase in EBITDA. These increases were partly offset by a 9% decline in EBITDA due to per pound decreases in olefins and polyethylene margins of 1 cent and 3 cents, respectively, relative to the prior year period.An increase in olefin margins2020, primarily driven by higher ethylene and co-product sales prices was partly offset in the first nine months of 2017 by a 4 cents per pound decrease in European polyethylene spreadsmargins across most businesses due to a more balanced European market. This net increase resulted in a 6% improvement in EBITDA in the first nine months of 2017 compared to the corresponding period in 2016. Higher volumes across most products during the period added another 5% to EBITDA. The net impact of the gain on the 2017 sale of our interest in Geosel and benefittight market supply from the elimination of an obligation associated with a lease, and 2016 gains on the sales of our wholly owned Argentine subsidiary, and our joint venture in Japan and idled assets in Australia resulted in an additional 6% increase in EBITDA. These increases were partially offset by a reduction in income from equity investments in Poland and Saudi Arabia in the first nine months of 2017 relative to very strong 2016 results.Intermediates and Derivatives SegmentOverview—Higher EBITDA for our I&D segment in the third quarter and first nine months of 2017 relative to the third quarter and first nine months of 2016 reflects stronger margins for intermediate chemicals products supported by industry outages and increased Asiacoupled with strong demand partially offset by the negative impacts of turnarounds at our Botlek, Netherlands, PO/TBA and Channelview, Texas, methanol facilities on sales. Improved PO and derivative results also benefited the third quarter of 2017. EBITDA for the third quarter and first nine months was also negatively impacted by reduced sales volumes due to Hurricane Harvey. Three Months Ended
September 30, Nine Months Ended
September 30, 2017 2016 2017 2016 $ 2,077 $ 1,805 $ 6,241 $ 5,276 4 2 5 3 402 304 1,080 1,027 Three Months Ended
September 30,Nine Months Ended
September 30,Millions of dollars 2021 2020 2021 2020 Sales and other operating revenues $ 2,894 $ 1,538 $ 7,246 $ 4,465 Income from equity investments 9 7 32 12 EBITDA 348 267 1,126 571 $272$1,356 million, or 15%88%, in the third quarter of 20172021 compared to the third quarter of 20162020 and by $965$2,781 million, or 18%,62% in the first nine months of 20172021 compared to the first nine months of 2016.20172021, respectively, as sales prices generally correlate with crude oil prices, which on average, increased compared to the same periods in 2020. Sales volumes increased in the third quarter of 2021 resulting in a 6% increase in revenue, due to improved demand for mostoxyfuels and related products which reflectas well as intermediate chemicals. Sales volumes declined in the first nine months of 2021 resulting in a 1% decrease in revenue due to the impact of unusually cold temperatures and associated electrical power outages that led to shutdowns of our manufacturing facilities in Texas in early 2021. Favorable foreign exchange impacts of higher feedstock and energy costs and recent industry supply constraints, were responsible for revenue increases of 14% and 19%, respectively. These increases were partially offset byresulted in a revenue decreaseincrease of 1%2% in eachthe first nine months of 2021.2017, primarily2021 declined 10% and 5%, respectively, due to lower sales volumes for oxyfuels and related products. This volume driven decline was largely due to two major turnarounds at our Botlek, Netherlands, and Channelview, Texas, facilities, and to a lesser extent, tosite closure costs associated with the negative effect of Hurricane Harvey on the operationsexit of our U.S. Gulf Coast facilities.The remaining change in revenues reflects foreign exchange impacts that, on average, were favorable for the third quarter of 2017.EBITDA—EBITDA increased $98 million, or 32%, in the third quarter of 2017 compared to the third quarter of 2016 and by $53 million, or 5%, in the first nine months of 2017 compared to the first nine months of 2016.Higher margins for intermediate chemicals and POethanol business. Propylene oxide and derivatives led to a 35% improvement in third quarter 2017 EBITDA relative to the third quarter of 2016. POresults increased by 55% and derivative margins were driven by increased seasonal demand supported by industry outages, while intermediate chemicals margins benefited from increased sales prices due to tight supply. The impact of lower volumes discussed above resulted in a 3% decrease in EBITDA for the third quarter of 2017.Higher intermediate chemicals margins driven by higher average sales prices were the main driver of a 9% increase in EBITDA in the first nine months of 2017, more than offsetting a 4% decrease in EBITDA stemming from the impact of lower volumes discussed above.Refining SegmentOverview—EBITDA for our Refining segment benefited from higher crude processing rates58% in the third quarter and first nine months of 2017 as2021, respectively. This increase was primarily a result of higher margins due to strong demand recovery coupled with tight market supply resulting from industry outages. Intermediate chemicals results declined 7% during the impactsthird quarter of planned2021, driven by lower volumes primarily in connection with downtime at our acetyls facilities in La Porte, Texas. Intermediate chemicals results increased 20% during the first nine months of 2021 due to improved margins driven by higher demand and unplanned maintenance outages in 2017 were less thantight market conditions. Oxyfuels and related products results increased 18% and 13% in the corresponding periodsthird quarter and first nine months of 2016. Higher industry margins, which include2021, respectively, primarily driven by margin improvement as a result of improved demand and higher gasoline prices.favorable impact related to industry production outages associated with Hurricane Harveyfirst nine months of 2020 included a $76 million LCM inventory valuation charge primarily driven by a decline in the price of various gasoline blending components, benzene and styrene since December 31, 2019. Results in the third quarter of 2017, also benefited2020 included a $22 million LCM inventory valuation benefit related to the 2017 periods but was offsetreversal of LCM inventory valuation charges recognized in the first half of 2020 driven by higher maintenance-related fixed costsprice improvements for various gasoline blending components since the second quarter of 2020. The absence of similar adjustments in the first nine months and third quarter of 2021 resulted in a 13% and 8% change in EBITDA, respectively.2017. Three Months Ended
September 30,Nine Months Ended
September 30,Millions of dollars 2021 2020 2021 2020 Sales and other operating revenues $ 1,286 $ 1,004 $ 3,892 $ 2,805 Income (loss) from equity investments — — — (1) EBITDA 121 157 385 226 Light Louisiana Sweet,“Brent” is a light sweet crude oil whileand is one of the main benchmark prices for purchases of oil worldwide. “Maya” is a heavy sour crude oil.oil grade produced in Mexico that is a relevant benchmark for heavy sour crude oils in the U.S. Gulf Coast market. References to industry benchmarks for refining market margins are to industry prices reported by Platts, a division of S&P Global. Three Months Ended
September 30, Nine Months Ended
September 30, 2017 2016 2017 2016 $ 1,670 $ 1,330 $ 4,736 $ 3,574 58 (10 ) 53 (9 ) 240 209 233 192 $ 16.71 $ 11.46 $ 13.94 $ 10.58 5.10 7.52 6.71 8.74 $ 21.81 $ 18.98 $ 20.65 $ 19.32 Three Months Ended
September 30,Nine Months Ended
September 30,Millions of dollars 2021 2020 2021 2020 Sales and other operating revenues $ 2,288 $ 1,101 $ 5,359 $ 3,468 EBITDA 41 (692) (150) (799) Thousands of barrels per day Heavy crude oil processing rates 260 216 220 226 Market margins, dollars per barrel Brent - 2-1-1 $ 16.10 $ 5.71 $ 14.00 $ 5.86 Brent - Maya differential 7.01 4.18 5.97 7.61 Total Maya 2-1-1 $ 23.11 $ 9.89 $ 19.97 $ 13.47 $340$1,187 million, or 26%108%, in the third quarter of 20172021 compared to the third quarter of 20162020 and by $1,162$1,891 million, or 33%55%, in the first nine months of 20172021 compared to the first nine months of 2016.increasesincrease of 23%95% and 29%,63% in the third quarter and first nine months of 2021, respectively, relative to the comparative periods in 2016 due to an average Brent crude oil price increasesincrease of approximately $8$30 and $11$25 per barrel in the third quarter and first nine months of 2017,2021, respectively. Heavy crude oil processing ratesSales volumes increased in the third quarter of 2021 resulting in a 13% increase in revenue due to improved demand. In the first nine months of 2021, revenue decreased 8% as a result of a decline in volumes due to planned and unplanned outages, including the effects of unusually cold temperatures and associated electrical power outages that led to shutdowns of our manufacturing facilities in Texas in early 2021.15%$733 million, or 106%, in the third quarter of 2021 compared to the third quarter of 2020 and 21%by $649 million, or 81%, in the first nine months of 2021 compared to the first nine months of 2020. During the third quarter of 2020, we recognized a non-cash impairment charge of $582 million relating to our Houston refinery’s asset group with no corresponding charge in the third quarter and first nine months of 2017, respectively, leading to volume driven revenue increases2021. The absence of 3% and 4% during those same periods.EBITDA—EBITDA increased by $68 million, or 680%,a similar charge in the third quarter and first nine months of 2017 compared to2021 resulted in a 84% and 73% change in EBITDA, respectively. The remaining increase in EBITDA was primarily driven by margin improvements in the third quarter and first nine months of 20162021. Margins improved due to an increase in the Maya 2-1-1 market margin resulting from higher demand for refined products. The first nine months of 2021 were also impacted by the absence of unplanned outages at our fluid catalytic cracking unit in 2021, which restricted the yield of higher-margin refined products in the first two quarters of 2020. This was partially offset by margin declines driven by unfavorable by-product crack spreads of $7 per barrel, higher costs of Renewable Identification Numbers (“RINs”) of approximately $1 per gallon and by $62the absence of $60 million or 689%,of favorable mark-to-market gains on hedges recognized in the first nine months of 2017 compared2020.2016.Higher production accounted for approximately 20% of the improvement in EBITDA in2021 relative to the third quarter of 2017 and all of the improvement in EBITDA for the first nine months of 2017. Crude oil processing rates in 2017 were2020 driven by higher than 2016, as the 2016 periods were negatively impacted by a coker unit fire in the second quarter and planned turnaround activity on a crude unit and a coker unit processing train in the first quarter. Downtime at crude units reduced crude oil processing rates in both 2016 comparison periods.Refining margins, which increased due to industry outages related to Hurricane Harvey, accounted for approximately 80% of the EBITDA improvement in the third quarter of 2017. Higher refining margins also benefited EBITDA in the first nine months of 2017; however, the benefit was offset by the higher maintenance-related fixed costs mentioned above.Technology SegmentOverview—EBITDA for the Technology segment was relatively unchanged in the third quarter of 2017 compared to the third quarter 2016. A decline in EBITDA in the first nine months of 2017 reflects lower licensing revenues partially offset by higherand catalyst sales volumes, compared to the first nine months of 2016. Three Months Ended
September 30, Nine Months Ended
September 30, 2017 2016 2017 2016 $ 98 $ 102 $ 325 $ 363 47 45 155 201 Revenues— Three Months Ended
September 30,Nine Months Ended
September 30,Millions of dollars 2021 2020 2021 2020 Sales and other operating revenues $ 238 $ 193 $ 586 $ 492 EBITDA 155 111 341 279 decreasedincreased by $4$45 million, or 4%23%, in the third quarter of 20172021 compared to the third quarter of 2016,2020 and by $38$94 million, or 10%19%, in the first nine months of 20172021 compared to the first nine months of 2016.Revenue decreases2020. Higher catalyst volumes resulted in a 8% and 6% increase in the third quarter and first nine months of 2021, respectively, primarily driven by strong demand. Changes in average catalyst sales price resulted in a revenue increase of 15% and 4% in the third quarter and first nine months of 2021, respectively. Licensing revenues increased by 3% in the first nine months of 2021. Favorable foreign exchange impacts increased revenue by 6% in the first nine months of 2021.2% and 4%, respectively, were attributable to catalyst sales volumes and average sales prices that were lower2021 compared to the third quarter of 2016. A decline in process licenses issued in prior periods also resulted in a revenue decrease of 3% in the third quarter of 2017. These decreases were offset in part by a revenue increase of 5% driven by foreign exchange impacts that, on average, were favorable in the third quarter of 2017.A decline in licensing revenues was responsible for a revenue decrease of 14% in the first nine months of 2017 relative to the corresponding period in 2016. This decrease was partially offset by revenue increases in the first nine months of 2017 of 3%2020 and 1%, respectively, related to increased catalyst sales volumes and higher average sales prices for catalysts.EBITDA—EBITDA increased by $2$62 million, or 4%, in the third quarter of 2017 compared to the third quarter of 2016, and decreased by $46 million, or 23%22%, in the first nine months of 20172021 compared to the first nine months of 2016.The benefit from higher catalyst margins, which was reduced roughly one half by lower licensing and services margins, led to a 9% increase in third quarter 2017 EBITDA. This net margin improvement was partly offset by a 5% volume-driven decrease resulting from lower catalyst volumes2020. EBITDA improvements in the third quarter and first nine months of 2017 relative to2021 were driven by higher licensing revenue driven by more contracts reaching significant milestones. Favorable foreign exchange impacts resulted in an EBITDA increase of 1% and 5% in the corresponding prior year period. Lower licensingthird quarter and services margins were largely responsible for a 27% EBITDA decrease in the first nine months of 2017. This decline was partly offset by a 4% improvement in EBITDA resulting from an increase in catalyst volumes during the first nine months2021, respectively. Nine Months Ended
September 30, 2017 2016 $ 3,724 $ 3,893 (1,254 ) (1,530 ) (2,191 ) (2,567 ) Nine Months Ended
September 30,Millions of dollars 2021 2020 Cash provided by (used in): Operating activities $ 4,616 $ 2,661 Investing activities (797) (2,307) Financing activities (3,627) 1,192 Activities—Activities—Cash of $3,724 million generated provided by operating activities of $4,616 million in the first nine months of 2017 reflects2021 reflected earnings adjusted for non-cash items, and $376 million of cash consumed by the main components of working capital–accounts receivable, inventories and accounts payable. Higher sales prices and increased volumes in our O&P–EAI segment led to the increase in accounts receivable and an increase in feedstock pricing in our O&P–EAI segment led to the increase in accounts payable in the first nine months of 2017. Higher olefin co-product and propylene prices in our O&P–Americas segment in the first nine months of 2017, which were partially offset by an inventory drawdown during turnaround activities at our I&D segment’s Botlek, Netherlands facility, led to the increase in inventories.Cash of $3,893 million generated in the first nine months of 2016 primarily reflected earnings adjustedpayments for non-cash itemsemployee bonuses, income taxes, income from equity investments, and cash used by the main components of working capital. The non-cash items in 2016 included a $78 million gain related tocapital—Accounts receivable, Inventories and Accounts payable.salefirst nine months of our wholly owned Argentine subsidiary and adjustments for related working capital, and gains totaling $11 million related to sales of our joint venture in Japan and idled assets in Australia.The2021, the main components of working capital used $1,517 million of cash driven primarily by an increase in Accounts receivable and Inventories, partially offset by an increase in Accounts payable. The increase in Accounts receivable was driven by higher revenues across most businesses primarily driven by higher sales volumes along with higher average sales prices. The increase in Inventories was primarily due to an increase in raw material costs coupled with the replenishment of $226inventory levels to support anticipated business demands. The increase in Accounts payable was primarily driven by increased raw material costs.duringin the first nine months of 2016. Higher product sales prices2020 reflected earnings adjusted for non-cash items, payments for employee bonuses, income taxes, and cash provided by the main components of working capital.O&P–Americas segment at the end of the third quarter of 2016 combined with the impact of higher quarter-end sales volumes in our O&P–Americas and I&D segments relative to the end of the fourth quarter of 2015 led to the increase in accounts receivable. Higher accounts payable partly offset the receivables increases, primarily in our O&P–Americas segment, due to additional purchases of product for resale during turnaround activities.20172021, we made an equity contribution of $104 million to form Ningbo ZRCC LyondellBasell New Material Company Limited, a 50/50 joint venture with China Petroleum & Chemical Corporation. The joint venture will construct a new propylene oxide and 2016, we invested $653 million and $683 million, respectively,styrene monomer unit in securities that are classified as Short-term investments.Zhenhai Ningbo, China. The majority of these investments are deemed available-for-sale; however, we also investedjoint venture is included in some securities deemed held-to-maturity. We received proceeds of $75 million upon maturity of our held-to-maturity securities during the first nine months of 2017. I&D segment.20172020, we invested $472 million in cash for a 50% equity interest in the Bora LyondellBasell Petrochemical Co. Ltd joint venture. This joint venture began operations during the third quarter of 2020 and 2016,is included in our O&P—EAI segment.also invested $512paid €300 million ($355 million at the expiry spot rate) to our counterparties and $500received $358 million respectively, in tri-party repurchase agreements, which are classified as short-term loans receivable. We received proceeds upon the sale and maturity of certain offrom our available-for-sale securities and repurchase agreements of $499 million and $381 million, respectively,counterparties.2017, and $6652021 totaled $1,285 million and $603compared to $1,673 million respectively, in the correspondingfirst nine months of 2020. Approximately 60% of our capital spending in both periods of 2016.Joint Venture Activity—In September 2017, we soldwas for profit-generating growth projects, primarily our 27% interest in our Geosel joint venture and received proceeds of $155 million.In April 2017, we increased our interestPO/TBA plant, with the remaining spending supporting sustaining maintenance. We estimate capital spending will continue to increase in the entity that holds our equity interest in Al Waha Petrochemicals Ltd. from 83.79%fourth quarter of 2021 compared to 100% by paying $21 millionprior quarters, while remaining flat on an annual basis compared to exercise a call option to purchase the remaining 16.21% interest held by a third party.In September 2016, we purchased a net additional interest in our joint venture in Korea for $36 million. In February 2016, we received proceeds of $72 million for the sale of our joint venture in Japan.Financial Instruments Activity—Upon expiration in September 2017 and August 2017, we settled foreign currency contracts, each with a notional value of €275 million, which were designated as net investment hedges of our investments in foreign subsidiaries. Payments to and proceeds from our counterparties resulted in a net cash outflow of $49 million.Upon expiration in September 2016 and March 2016, we settled foreign currency contracts with notional values of €450 million and €750 million, respectively, which were designated as net investment hedges of our investments in foreign subsidiaries. Payments to and proceeds from our counterparties resulted in net cash outflows totaling $61 million.prior year. See Note 612 to the Consolidated Financial Statements for additional information regarding these foreign currency contracts.Sale of Wholly Owned Subsidiary—In February 2016, we received net cash proceeds of $137 million for the sale of our wholly owned Argentine subsidiary.Capital Expenditures—The following table summarizes capital expenditures for the periods presented: Nine Months Ended
September 30, 2017 2016 $ 546 $ 1,026 123 189 263 246 184 179 21 24 9 12 $ 1,146 $ 1,676 20172021 and 2016, our capital expenditures included construction related to our new Hyperzone polyethylene plant at our La Porte, Texas facility, construction related to our new PO/TBA plant in Texas, debottlenecks of certain assets to enhance production, turnaround activities at several sites as well as other plant improvement projects. The lower level of capital expenditures for our O&P–Americas in the first nine months of 2017 is largely due to the completion of the 800 million pound ethylene expansion at our Corpus Christi, Texas facility in the fourth quarter of 2016.Financing Activities—In the first nine months of 2017 and 2016,2020, we made payments of $866$78 million and $2,501$4 million respectively, to acquire approximately 101.0 million and 310.1 million, respectively, of our outstanding ordinary shares. We also made dividend payments totaling $1,060$1,110 million and $1,049 million during the first nine months of 2017 and 2016, respectively. For additional information related to these share repurchases and dividend payments, see Note 10 to the Consolidated Financial Statements.We made net repayments of $178 million and received net proceeds of $177$1,053 million in the first nine months of 20172021 and 2016,2020, respectively.March 2017,the first nine months of 2020, we issued $1,000posted collateral of $238 million of 3.5% guaranteed notes due 2027 and received net proceeds of $990 million. The proceeds from these notes, togetherrelated to the positions held with available cash, were used to repay $1,000 million of our outstanding 5% senior notes due 2019. We paid $65 million in premiums in connection with this prepayment.In March 2016, we issued €750 million of 1.875% guaranteed notes due 2022 and received net proceeds of $812 million. The net proceeds from these notes were usedcounterparties for general corporate purposes, including repurchases of LyondellBasell N.V.’s ordinary shares.these notesthe issuance of debt and commercial paper can be found in the Liquidity and Capital Resources section below and in Note 56 to the Consolidated Financial Statements.—2017,2021, we had $2,499 million of unrestricted cashCash and cash equivalents and marketable securities classified as Short-term investments and held $561totaling $1,929 million, of tri-party repurchase agreements classified as Prepaid expenses and other current assets. For additional information related to our purchases of marketable securities see “Investing Activities” above and Note 6 to the Consolidated Financial Statements.At September 30, 2017, we held $584which includes $1,593 million of cash in jurisdictions outside of the U.S., principally in the United Kingdom. There are currently no legal or economic restrictions that would materially would impede our transfers of cash. also had total unused availability under our credit facilities of $2,955$3,004 million at September 30, 2017,2021, which included the following:2,1832,104 million under our $2,500 million revolving credit facility,Senior Revolving Credit Facility, which backs our $2,500 million commercial paper program. In June 2017, the term of our $2,500 million revolving credit facility was extended for one year to June 2022 pursuant to a consent agreement. Availability under this facility is net of outstanding borrowings, outstanding letters of credit provided under the facility and notes issued under our commercial paper program. A small portion of our availability under this facility is impacted by changes in the euro/U.S. dollar exchange rate. At September 30, 2017,2021, we had $317$397 million of outstanding commercial paper, net of discount, no outstandingborrowings or letters of credit and no outstanding borrowings under thethis facility; and772900 million under our $900 million U.S. accounts receivable securitization facility.Receivables Facility. Availability under this facility is subject to a borrowing base of eligible receivables, which is reduced by outstanding borrowings and letters of credit, if any. This facilityAt September 30, 2021, we had no outstanding borrowings or letters of credit at September 30, 2017.March 2017,June 2021, we extended the term of the facility to June 2024 in accordance with the terms of the agreement.direct, 100% owned subsidiary, LYB International Finance II B.V., issued $1,000Term Loan due 2022, 4% Guaranteed Notes due 2023 and 2.875% Guaranteed notes due 2025, and made net repayments of $103 million of 3.5% guaranteed notesour commercial paper. Additionally, in October 2021 we repaid $650 million outstanding under our Guaranteed Floating Rate Notes due 2027 at a discounted price of 98.968%. These unsecured notes, which are fully2023. We continue to prioritize debt reduction in 2021 and unconditionally guaranteed by LyondellBasell Industries N.V., rank equally in right of payment to all of LYB International Finance II B.V.’s existing and future unsecured indebtedness and to all of LyondellBasell N.V.’s existing and future unsubordinated indebtedness. The net proceeds from these notes, together with available cash, were used to repay $1,000 million aggregate principal amountexpect total reduction of our outstanding 5% Senior Notes due 2019 in March 2017.September 30, 2017,any time and from time to time, we had totalmay repay or redeem our outstanding debt, including current maturities,purchases of $8,915 million,our outstanding bonds in the open market, through privately negotiated transactions or a combination thereof, in each case using cash and $551 millioncash equivalents, cash from our short-term investments, cash from operating activities, proceeds from the issuance of outstanding lettersdebt or proceeds from asset divestitures. Any repayment or redemption of credit, bank guaranteesour debt will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and surety bonds issued under uncommitted credit facilities.For additional information related to our credit facilities and Notes discussed above, see Note 5 to the Consolidated Financial Statements.2017,2021, our shareholders approved a proposal to authorize us to repurchase up to an additional 10%, or approximately 4034.0 million of our outstanding ordinary shares, through November 201828, 2022 (“May 20172021 Share Repurchase Program”Authorization”). As a result, the authorization of the remaining unpurchased shares under the share, which superseded any prior repurchase program approved by our shareholders in May 2016 (“May 2016 Share Repurchase Program”) was superseded.authorizations. Our share repurchase programauthorization does not have a stated dollar amount, and purchases may be made through open market purchases, private market transactions or other structured transactions. Repurchased shares could be retired or used for general corporate purposes, including for various employee benefit and compensation plans. DuringThe maximum number of shares that may yet be purchased is not necessarily an indication of the number of shares that will ultimately be purchased. In the first nine2017,2021, we have purchased approximately 101.0 million shares under these programsour share repurchase authorization for approximately $845$89 million.24, 2017,27, 2021, we had approximately 3432.2 million shares remaining under the current authorization. The timing and amountamounts of additional shares repurchased, if any, will be determined by our Management Board based on itsour evaluation of market conditions and other factors.factors, including any additional authorizations approved by our shareholders. For additional information related to our share repurchase programs,authorizations, see Note 10 to the Consolidated Financial Statements.may repay or redeemexpect strong demand for our debt, including purchases of our outstanding bondsproducts to continue as vaccine rollouts drive further improvements in economic activity around the open market, using cash and cash equivalents, cash from our short-term investments and tri-party repurchase agreements, cash from operating activities, proceeds fromworld. Over the issuance of debt, proceeds from asset divestitures, or a combination thereof. In connection with any repayment or redemption of our debt,next several quarters, we may incur cash and non-cash charges, which could be materialexpect constrained consumer demand will extend strength in the period in which they are incurred.In July 2017, we announced our final investment decision to build a world-scale PO/TBA plant in Texas with a capacity of 1 billion pounds of PO and 2.2 billion pounds of TBA. The project is estimated to cost approximately $2.4 billion, withautomotive, construction estimated to commence in the second half of 2018. We anticipate the project to be completed in the middle of 2021.We plan to fund our ongoing working capital, capital expenditures, debt service and other funding requirements with cashdurable goods markets. While margins are likely to moderate due to increasing feedstock prices, energy costs and winter seasonality, we anticipate ongoing benefits from operations, which could be affected by general economic, financial, competitive, legislative, regulatory, businessstrong markets and other factors, many of which are beyond our control. Cash and cash equivalents, cash from our short-term investments and tri-party repurchase agreements, cash from operating activities, proceeds from the issuance of debt, or a combination thereof, may be used to fund the repurchase of shares under our share repurchase program.We intend to continue to declare and pay quarterly dividends, with the goal of increasing the dividend over time, after giving consideration to our cash balances and expected results from operations.available liquidity andrecent value-driven growth investments should benefit us over the coming years. With an improving outlook for cash from operating activities provide us with sufficient financial resources to meet our anticipated capital requirements and obligations as they come due.CURRENT BUSINESS OUTLOOKHurricane Harvey reduced inventories across the petrochemical industry and contributedgeneration, we remain committed to further delaysstrengthening our investment grade balance sheet through deleveraging in the startup of new U.S. capacity. As2021. Additionally, we look toward the remainder of 2017, weexpect cash generation will continue to see firm olefin and polyolefin markets as supply chains restock from the production lost during Hurricane Harvey. New polyethylene capacity is aligned with seasonal demand and supportive of improved demandprovide flexibility for ethylene while the industry awaits the startup of additional crackers during 2018. Global demand for polyolefins remains strong.Most intermediate and derivatives products are well-positioned as we enter the fourth quarter and are expected to balance typical seasonal weakness in oxyfuels. U.S. Gulf Coast refining markets appear to have reset favorably after the hurricanes with stronger distillate spreads and improved heavy to light differentials.We estimate that additional lost sales and expenses from the storm, primarily related to the outage at our La Porte, Texas facility will negatively impact fourth quarter 2017 results by approximately $100 million. Unplanned maintenance on the cracker at our Wesseling, Germany facility in October 2017 is expected to negatively impact our O&P–EAI segment’s fourth quarter 2017 results by approximately $40 million.consolidated financial statements,Consolidated Financial Statements, see Note 2 to the Consolidated Financial Statements. the forward-looking statements on our current expectations, estimates and projections about ourselvesof our business and the industries in which we operate in general.operate. We caution you that these statements are not guarantees of future performance as theyperformance. They involve assumptions about future events that, while made in good faith, may prove to be incorrect, and involve risks and uncertainties we cannot predict. Accordingly, ourOur actual outcomes and results may differ materially from what we have expressed or forecast in the forward-looking statements. Any differences could result from a variety of factors, including the following:
2021.
The following is
In March 2017, the Texas Commission on Environmental Quality (the “TCEQ”) issued a proposed Agreed Order to Houston Refining LP. The proposed Agreed Order stems from agency record reviews conducted from May to July 2016 and September to October 2016 and an agency investigation conducted in April 2016. In June 2017, TCEQ issued a revised Agreed Order that carries a total administrative penalty of $77,626.$3,400,000, conduct fence line monitoring, and make investments in equipment at the facilities. The Agreed Order is currently awaiting final TCEQ approval.
consent decree related to the settlement has been filed in the U.S. District Court for the Southern District of Texas.
| Issuer Purchases of Equity Securities | ||||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs (1) | ||||||||||||
July 1 – July 31 | 1,771,723 | $ | 85.32 | 1,771,723 | 34,865,351 | |||||||||||
August 1 – August 31 | 1,278,308 | $ | 88.19 | 1,278,308 | 33,587,043 | |||||||||||
September 1 – September 30 | 16,327 | $ | 88.91 | 16,327 | 33,570,716 | |||||||||||
|
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| |||||||||||||
Total | 3,066,358 | $ | 86.53 | 3,066,358 | 33,570,716 | |||||||||||
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| |||||||||||||
| Issuer Purchases of Equity Securities | ||||||||||||||||||||||||||
| Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Authorizations | Maximum Number of Shares That May Yet Be Purchased Under the Plans or Authorizations | ||||||||||||||||||||||
| July 1 - July 31 | — | $ | — | — | 34,004,563 | |||||||||||||||||||||
| August 1 - August 31 | — | $ | — | — | 34,004,563 | |||||||||||||||||||||
| September 1 - September 30 | 953,681 | $ | 93.34 | 953,681 | 33,050,882 | |||||||||||||||||||||
| Total | 953,681 | $ | 93.34 | 953,681 | 33,050,882 | |||||||||||||||||||||
| Exhibit Number | Description | |||||||
| 10.1+ | ||||||||
| XBRL Instance | ||||||||
| XBRL Schema Document | ||||||||
| XBRL Calculation Linkbase Document | ||||||||
| XBRL Definition Linkbase Document | ||||||||
| XBRL Labels Linkbase Document | ||||||||
| XBRL Presentation Linkbase Document | ||||||||
| 104* | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | |||||||
| LYONDELLBASELL INDUSTRIES N.V. | |||||||||||
| Date: | October | /s/ | |||||||||
| Chief | |||||||||||
| (Principal | |||||||||||
56