Exhibit 99.3
Non-GAAP Financial Measures
This exhibit provides additional information concerning the implications, on a historic basis, of the Company's change in its accounting policy for pension accounting.
Use of Non-U.S. GAAP Financial Measures
From time to time, management may publicly disclose certain "numerical non-GAAP financial measures" in the course of our financial presentations, earnings releases, earnings conference calls and otherwise. For these purposes, the U.S. Securities and Exchange Commission (“SEC”) defines a "non-GAAP financial measure" as a numerical measure of historical or future financial performance, financial positions, or cash flows that excludes amounts, or is subject to adjustments that effectively exclude amounts, included in the most directly comparable measure calculated and presented in accordance with GAAP in financial statements, and vice versa for measures that include amounts, or is subject to adjustments that effectively include amounts, that are excluded from the most directly comparable measure so calculated and presented. For these purposes, "GAAP" refers to generally accepted accounting principles in the United States.
Non-GAAP financial measures disclosed by management are provided as additional information to investors in order to provide them with an alternative method for assessing our financial condition and operating results. The Company presents these non-GAAP financial measures because it believes them to be important supplemental measures of performance that are used by security analysts, investors and other interested parties in the evaluation of companies in our industry. These non-GAAP financial measures should be viewed as supplemental to, and should not be considered as alternatives to net earnings (loss), operating profit (loss), cash flow from operating activities, earnings per share or any other financial measures. They may not be indicative of the historical operating results of the Company nor is it intended to be predictive of potential future results. Investors should not consider these non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP. Our management uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparison.
Pursuant to the requirements of SEC Regulation G, whenever we refer to a non-GAAP financial measure, we will also generally present, in the presentation or on a Form 8-K or on our Web site, www.celanese.com, to the extent practicable, the most directly comparable financial measure calculated and presented in accordance with GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference with such comparable GAAP financial measure. This supplemental financial disclosure should be considered within the context of our complete audited financial results for the given period, which are available on the Financial Information / SEC Filings page of the Investor Relations section of our Web site, www.celanese.com.
Specific Measures Used
This exhibit uses or references the following performance measures: adjusted EBIT, operating EBITDA and adjusted earnings per share as non-U.S. GAAP measures. The most directly comparable financial measure presented in accordance with U.S. GAAP in our consolidated financial statements for adjusted EBIT is net earnings (loss); for operating EBITDA is net earnings (loss); and for adjusted earnings per share is earnings per common share-diluted.
Definitions
• | Adjusted EBIT is defined by the company as net earnings (loss) less interest income plus loss (earnings) from discontinued operations, interest expense and taxes, and further adjusted for other charges and other adjustments. We believe that adjusted EBIT is more reflective of our operations as it provides transparency to investors and enhances period-to-period comparability of our operations and financial performance. Our management believes adjusted EBIT is an important measure of our operating performance because it allows management, investors and analysts to evaluate and assess our core operating results from period to period after removing the impact of unusual, non-operational or restructuring-related activities that affect comparability. Our management recognizes that adjusted EBIT has inherent limitations because of the excluded items. Adjusted EBIT is one of the measures management uses for its planning and budgeting process to monitor and evaluate financial and operating results and for the company's incentive compensation plan. We may provide guidance on adjusted EBIT and are unable to reconcile forecasted adjusted EBIT to a U.S. GAAP financial measure because a forecast of other charges and other adjustments is not practical. Adjusted EBIT by business segment may also be referred to by management as segment income. |
EX 99.3 - 1
• | Operating EBITDA is defined by the company as net earnings (loss) less interest income plus loss (earnings) from discontinued operations, interest expense, taxes, and depreciation and amortization, and further adjusted for other charges and other adjustments. We believe that operating EBITDA is more reflective of our operations as it provides transparency to investors and enhances period-to-period comparability of our operations and financial performance. Our management believes operating EBITDA is an important measure of our operating performance because it allows management, investors and analysts to evaluate and assess our core operating results from period to period after removing the impact of unusual, non-operational or restructuring-related activities that affect comparability. Our management recognizes that operating EBITDA has inherent limitations because of the excluded items. Operating EBITDA is one of the measures management uses for its planning and budgeting process to monitor and evaluate financial and operating results and for the company's incentive compensation plan. We may provide guidance on operating EBITDA and are unable to reconcile forecasted operating EBITDA to a U.S. GAAP financial measure because a forecast of other charges and other adjustments is not practical. |
• | Adjusted earnings per share is a measure used by management to measure performance. It is defined by the company as earnings (loss) from continuing operations, adjusted for other charges and other adjustments, and divided by the number of basic common shares, convertible preferred shares and dilutive restricted stock units and stock options calculated using the treasury method. We may provide guidance on an adjusted earnings per share basis and are unable to reconcile forecasted adjusted earnings per share to a U.S. GAAP financial measure without unreasonable effort because a forecast of other charges and other adjustments is not practical. We believe that the presentation of this non-U.S. GAAP measure provides useful information to management and investors regarding various financial and business trends relating to our financial condition and results of operations, and that when U.S. GAAP information is viewed in conjunction with non-U.S. GAAP information, investors are provided with a more meaningful understanding of our ongoing operating performance. Note: The income tax rate used for adjusted earnings per share approximates the midpoint in a range of forecasted tax rates for the year. This range may include certain partial or full-year forecasted tax opportunities, where applicable, and specifically excludes changes in uncertain tax positions, discrete items and other material items adjusted out of our U.S. GAAP earnings for adjusted earnings per share purposes, and changes in management's assessments regarding the ability to realize deferred tax assets. We analyze this rate quarterly and adjust if there is a material change in the range of forecasted tax rates; an updated forecast would not necessarily result in a change to our tax rate used for adjusted earnings per share. The adjusted tax rate is an estimate and may differ from the tax rate used for U.S. GAAP reporting in any given reporting period. It is not practical to reconcile our prospective adjusted tax rate to the actual U.S. GAAP tax rate in any given future period. |
Results Unaudited
The results presented in this exhibit, together with the adjustments made to present the results on a comparable basis, have not been audited and are based on internal financial data furnished to management. Quarterly results should not be taken as an indication of the results of operations to be reported for any subsequent period or for the full fiscal year.
EX 99.3 - 2
Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Year Ended December 31, 2012 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Net earnings (loss) | 605 | (233 | ) | 372 | ||||
(Earnings) loss from discontinued operations | 4 | — | 4 | |||||
Interest income | (2 | ) | — | (2 | ) | |||
Interest expense | 185 | — | 185 | |||||
Refinancing expense | 3 | — | 3 | |||||
Income tax provision (benefit) | 48 | (103 | ) | (55 | ) | |||
Other charges (gains), net (1) | 14 | — | 14 | |||||
Other adjustments (1) | 52 | 389 | 441 | |||||
Adjusted EBIT | 909 | 53 | 962 | |||||
Depreciation and amortization expense (2) | 300 | — | 300 | |||||
Operating EBITDA | 1,209 | 53 | 1,262 |
Year Ended December 31, 2012 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Advanced Engineered Materials | — | — | — | |||||
Consumer Specialties | 6 | — | 6 | |||||
Industrial Specialties | 2 | — | 2 | |||||
Acetyl Intermediates | — | — | — | |||||
Other Activities (3) | — | — | — | |||||
Accelerated depreciation and amortization expense | 8 | — | 8 | |||||
Depreciation and amortization expense (2) | 300 | — | 300 | |||||
Total depreciation and amortization expense | 308 | — | 308 |
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above. |
(3) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
EX 99.3 - 3
Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Year Ended December 31, 2012 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Operating Profit (Loss) | ||||||||
Advanced Engineered Materials | 86 | 9 | 95 | |||||
Consumer Specialties | 244 | 7 | 251 | |||||
Industrial Specialties | 82 | 4 | 86 | |||||
Acetyl Intermediates | 263 | 6 | 269 | |||||
Other Activities (1) | (164 | ) | (362 | ) | (526 | ) | ||
Total | 511 | (336 | ) | 175 | ||||
Equity Earnings, Cost - Dividend Income and Other Income (Expense) | ||||||||
Advanced Engineered Materials | 190 | — | 190 | |||||
Consumer Specialties | 90 | — | 90 | |||||
Industrial Specialties | — | — | — | |||||
Acetyl Intermediates | 13 | — | 13 | |||||
Other Activities (1) | 39 | — | 39 | |||||
Total | 332 | — | 332 | |||||
Other Charges and Other Adjustments (2) | ||||||||
Advanced Engineered Materials | 16 | — | 16 | |||||
Consumer Specialties | 34 | — | 34 | |||||
Industrial Specialties | 2 | — | 2 | |||||
Acetyl Intermediates | 5 | — | 5 | |||||
Other Activities (1) | 9 | 389 | 398 | |||||
Total | 66 | 389 | 455 | |||||
Adjusted EBIT | ||||||||
Advanced Engineered Materials | 292 | 9 | 301 | |||||
Consumer Specialties | 368 | 7 | 375 | |||||
Industrial Specialties | 84 | 4 | 88 | |||||
Acetyl Intermediates | 281 | 6 | 287 | |||||
Other Activities (1) | (116 | ) | 27 | (89 | ) | |||
Total | 909 | 53 | 962 | |||||
Depreciation and Amortization Expense (3) | ||||||||
Advanced Engineered Materials | 113 | — | 113 | |||||
Consumer Specialties | 39 | — | 39 | |||||
Industrial Specialties | 53 | — | 53 | |||||
Acetyl Intermediates | 80 | — | 80 | |||||
Other Activities (1) | 15 | — | 15 | |||||
Total | 300 | — | 300 | |||||
Operating EBITDA | ||||||||
Advanced Engineered Materials | 405 | 9 | 414 | |||||
Consumer Specialties | 407 | 7 | 414 | |||||
Industrial Specialties | 137 | 4 | 141 | |||||
Acetyl Intermediates | 361 | 6 | 367 | |||||
Other Activities (1) | (101 | ) | 27 | (74 | ) | |||
Total | 1,209 | 53 | 1,262 |
______________________________
(1) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
(2) | See Other charges and Other adjustments reconciliation for details. |
(3) | Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above. |
EX 99.3 - 4
Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Year Ended December 31, 2012 | |||||||||||||||||
As Previously Reported | Effect of Change | As Adjusted | |||||||||||||||
per share | per share | per share | |||||||||||||||
(In $ millions, except per share data) | |||||||||||||||||
Earnings (loss) from continuing operations | 609 | 3.81 | (233 | ) | (1.46 | ) | 376 | 2.35 | |||||||||
Deduct: Income tax (provision) benefit | (48 | ) | 103 | 55 | |||||||||||||
Earnings (loss) from continuing operations before tax | 657 | (336 | ) | 321 | |||||||||||||
Other charges and other adjustments (1) | 66 | 389 | 455 | ||||||||||||||
Refinancing and related expenses | 8 | — | 8 | ||||||||||||||
Adjusted earnings (loss) from continuing operations before tax | 731 | 53 | 784 | ||||||||||||||
Income tax (provision) benefit on adjusted earnings (2) | (124 | ) | (9 | ) | (133 | ) | |||||||||||
Noncontrolling interests | — | — | — | ||||||||||||||
Adjusted earnings (loss) from continuing operations (3) | 607 | 3.80 | 44 | 0.27 | 651 | 4.07 | |||||||||||
Diluted shares (in millions) (4) | |||||||||||||||||
Weighted average shares outstanding | 158.3 | — | 158.3 | ||||||||||||||
Dilutive stock options | 0.9 | — | 0.9 | ||||||||||||||
Dilutive restricted stock units | 0.6 | — | 0.6 | ||||||||||||||
Total diluted shares | 159.8 | — | 159.8 |
______________________________
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | The adjusted effective tax rate is 17% for the year ended December 31, 2012. |
(3) | The As adjusted amount excludes the immediate recognition of actuarial gains and losses and the impact of actual plan asset returns of 13.1% vs. expected plan asset returns of 8.06%. |
(4) | Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive. |
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net: | Year Ended December 31, 2012 | |||
(In $ millions) | ||||
Employee termination benefits | 6 | |||
Kelsterbach plant relocation | 7 | |||
Plumbing actions | (5 | ) | ||
Asset impairments | 8 | |||
Commercial disputes | (2 | ) | ||
Total | 14 | |||
Other Adjustments: (1) | Year Ended December 31, 2012 | Income Statement Classification | ||
(In $ millions) | ||||
Business optimization | 9 | SG&A | ||
Kelsterbach plant relocation | 14 | Cost of sales | ||
Plant closures | 21 | Cost of sales / SG&A | ||
(Gain) loss on disposition of assets | 1 | (Gain) loss on disposition | ||
Acetate production interruption costs | 10 | Cost of sales | ||
InfraServ Hoechst debt restructuring | (22 | ) | Equity in net (earnings) loss of affiliates | |
Actuarial (gain) loss on pension and postretirement plans | 389 | Cost of sales / SG&A / R&D | ||
Other | 19 | Various | ||
Total | 441 | |||
Total other charges and other adjustments | 455 |
______________________________
(1) | These items are included in net earnings but not included in Other charges (gains), net. |
EX 99.3 - 5
Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Year Ended December 31, 2011 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Net earnings (loss) | 607 | (180 | ) | 427 | ||||
(Earnings) loss from discontinued operations | (1 | ) | — | (1 | ) | |||
Interest income | (3 | ) | — | (3 | ) | |||
Interest expense | 221 | — | 221 | |||||
Refinancing expense | 3 | — | 3 | |||||
Income tax provision (benefit) | 149 | (108 | ) | 41 | ||||
Other charges (gains), net (1) | 48 | — | 48 | |||||
Other adjustments (1) | 51 | 306 | 357 | |||||
Adjusted EBIT | 1,075 | 18 | 1,093 | |||||
Depreciation and amortization expense (2) | 287 | — | 287 | |||||
Operating EBITDA | 1,362 | 18 | 1,380 |
Year Ended December 31, 2011 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Advanced Engineered Materials | 3 | — | 3 | |||||
Consumer Specialties | 8 | — | 8 | |||||
Industrial Specialties | — | — | — | |||||
Acetyl Intermediates | — | — | — | |||||
Other Activities (3) | — | — | — | |||||
Accelerated depreciation and amortization expense | 11 | — | 11 | |||||
Depreciation and amortization expense (2) | 287 | — | 287 | |||||
Total depreciation and amortization expense | 298 | — | 298 |
______________________________
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above. |
(3) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
EX 99.3 - 6
Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Year Ended December 31, 2011 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Operating Profit (Loss) | ||||||||
Advanced Engineered Materials | 76 | 3 | 79 | |||||
Consumer Specialties | 227 | 2 | 229 | |||||
Industrial Specialties | 100 | 2 | 102 | |||||
Acetyl Intermediates | 459 | (1 | ) | 458 | ||||
Other Activities (1) | (172 | ) | (294 | ) | (466 | ) | ||
Total | 690 | (288 | ) | 402 | ||||
Equity Earnings, Cost - Dividend Income and Other Income (Expense) | ||||||||
Advanced Engineered Materials | 163 | — | 163 | |||||
Consumer Specialties | 80 | — | 80 | |||||
Industrial Specialties | 2 | — | 2 | |||||
Acetyl Intermediates | 10 | — | 10 | |||||
Other Activities (1) | 31 | — | 31 | |||||
Total | 286 | — | 286 | |||||
Other Charges and Other Adjustments (2) | ||||||||
Advanced Engineered Materials | 60 | — | 60 | |||||
Consumer Specialties | 23 | — | 23 | |||||
Industrial Specialties | 1 | — | 1 | |||||
Acetyl Intermediates | (3 | ) | — | (3 | ) | |||
Other Activities (1) | 18 | 306 | 324 | |||||
Total | 99 | 306 | 405 | |||||
Adjusted EBIT | ||||||||
Advanced Engineered Materials | 299 | 3 | 302 | |||||
Consumer Specialties | 330 | 2 | 332 | |||||
Industrial Specialties | 103 | 2 | 105 | |||||
Acetyl Intermediates | 466 | (1 | ) | 465 | ||||
Other Activities (1) | (123 | ) | 12 | (111 | ) | |||
Total | 1,075 | 18 | 1,093 | |||||
Depreciation and Amortization Expense (3) | ||||||||
Advanced Engineered Materials | 97 | — | 97 | |||||
Consumer Specialties | 36 | — | 36 | |||||
Industrial Specialties | 45 | — | 45 | |||||
Acetyl Intermediates | 96 | — | 96 | |||||
Other Activities (1) | 13 | — | 13 | |||||
Total | 287 | — | 287 | |||||
Operating EBITDA | ||||||||
Advanced Engineered Materials | 396 | 3 | 399 | |||||
Consumer Specialties | 366 | 2 | 368 | |||||
Industrial Specialties | 148 | 2 | 150 | |||||
Acetyl Intermediates | 562 | (1 | ) | 561 | ||||
Other Activities (1) | (110 | ) | 12 | (98 | ) | |||
Total | 1,362 | 18 | 1,380 |
______________________________
(1) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
(2) | See Other charges and Other adjustments reconciliation for details. |
(3) | Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above. |
EX 99.3 - 7
Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Year Ended December 31, 2011 | |||||||||||||||||
As Previously Reported | Effect of Change | As Adjusted | |||||||||||||||
per share | per share | per share | |||||||||||||||
(In $ millions, except per share data) | |||||||||||||||||
Earnings (loss) from continuing operations | 606 | 3.81 | (180 | ) | (1.13 | ) | 426 | 2.68 | |||||||||
Deduct: Income tax (provision) benefit | (149 | ) | 108 | (41 | ) | ||||||||||||
Earnings (loss) from continuing operations before tax | 755 | (288 | ) | 467 | |||||||||||||
Other charges and other adjustments (1) | 99 | 306 | 405 | ||||||||||||||
Refinancing and related expenses | 3 | — | 3 | ||||||||||||||
Adjusted earnings (loss) from continuing operations before tax | 857 | 18 | 875 | ||||||||||||||
Income tax (provision) benefit on adjusted earnings (2) | (146 | ) | (12 | ) | (158 | ) | |||||||||||
Noncontrolling interests | — | — | — | ||||||||||||||
Adjusted earnings (loss) from continuing operations (3) | 711 | 4.47 | 6 | 0.04 | 717 | 4.51 | |||||||||||
Diluted shares (in millions) (4) | |||||||||||||||||
Weighted average shares outstanding | 156.2 | — | 156.2 | ||||||||||||||
Dilutive stock options | 1.9 | — | 1.9 | ||||||||||||||
Dilutive restricted stock units | 0.8 | — | 0.8 | ||||||||||||||
Total diluted shares | 158.9 | — | 158.9 |
______________________________
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | The adjusted effective tax rate for the year ended December 31, 2011 is 17% As previously reported and 18% As adjusted. |
(3) | The As adjusted amount excludes the immediate recognition of actuarial gains and losses and the impact of actual plan asset returns of 7.6% vs. expected plan asset returns of 8.06%. |
(4) | Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive. |
EX 99.3 - 8
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net: | Year Ended December 31, 2011 | |||
(In $ millions) | ||||
Employee termination benefits | 22 | |||
Kelsterbach plant relocation | 47 | |||
Plumbing actions | (6 | ) | ||
Asset impairments | 1 | |||
Commercial disputes | (15 | ) | ||
Other | (1 | ) | ||
Total | 48 | |||
Other Adjustments: (1) | Year Ended December 31, 2011 | Income Statement Classification | ||
(In $ millions) | ||||
Business optimization | 8 | SG&A | ||
Kelsterbach plant relocation | 8 | Cost of sales | ||
Plant closures | 18 | Cost of sales / SG&A | ||
(Gain) loss on disposition of assets | (1 | ) | (Gain) loss on disposition | |
Write-off of other productive assets | (1 | ) | Cost of sales | |
Commercial disputes | 8 | Cost of sales / SG&A | ||
Actuarial (gain) loss on pension and postretirement plans | 306 | Cost of sales / SG&A / R&D | ||
Other | 11 | Cost of sales | ||
Total | 357 | |||
Total other charges and other adjustments | 405 |
______________________________
(1) | These items are included in net earnings but not included in Other charges (gains), net. |
EX 99.3 - 9
Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Year Ended December 31, 2010 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Net earnings (loss) | 377 | (65 | ) | 312 | ||||
(Earnings) loss from discontinued operations | 49 | — | 49 | |||||
Interest income | (7 | ) | — | (7 | ) | |||
Interest expense | 204 | — | 204 | |||||
Refinancing expense | 16 | — | 16 | |||||
Income tax provision (benefit) | 112 | (40 | ) | 72 | ||||
Other charges (gains), net (1) | 46 | — | 46 | |||||
Other adjustments (1) | 67 | 84 | 151 | |||||
Adjusted EBIT | 864 | (21 | ) | 843 | ||||
Depreciation and amortization expense (2) | 258 | — | 258 | |||||
Operating EBITDA | 1,122 | (21 | ) | 1,101 |
Year Ended December 31, 2010 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Advanced Engineered Materials | 4 | — | 4 | |||||
Consumer Specialties | 5 | — | 5 | |||||
Industrial Specialties | — | — | — | |||||
Acetyl Intermediates | 20 | — | 20 | |||||
Other Activities (3) | — | — | — | |||||
Accelerated depreciation and amortization expense | 29 | — | 29 | |||||
Depreciation and amortization expense (2) | 258 | — | 258 | |||||
Total depreciation and amortization expense | 287 | — | 287 |
______________________________
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above. |
(3) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
EX 99.3 - 10
Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Year Ended December 31, 2010 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Operating Profit (Loss) | ||||||||
Advanced Engineered Materials | 186 | (4 | ) | 182 | ||||
Consumer Specialties | 164 | (1 | ) | 163 | ||||
Industrial Specialties | 89 | — | 89 | |||||
Acetyl Intermediates | 243 | (6 | ) | 237 | ||||
Other Activities (1) | (179 | ) | (94 | ) | (273 | ) | ||
Total | 503 | (105 | ) | 398 | ||||
Equity Earnings, Cost - Dividend Income and Other Income (Expense) | ||||||||
Advanced Engineered Materials | 143 | — | 143 | |||||
Consumer Specialties | 73 | — | 73 | |||||
Industrial Specialties | — | — | — | |||||
Acetyl Intermediates | 9 | — | 9 | |||||
Other Activities (1) | 23 | — | 23 | |||||
Total | 248 | — | 248 | |||||
Other Charges and Other Adjustments (2) | ||||||||
Advanced Engineered Materials | (38 | ) | — | (38 | ) | |||
Consumer Specialties | 97 | — | 97 | |||||
Industrial Specialties | (19 | ) | — | (19 | ) | |||
Acetyl Intermediates | 62 | — | 62 | |||||
Other Activities (1) | 11 | 84 | 95 | |||||
Total | 113 | 84 | 197 | |||||
Adjusted EBIT | ||||||||
Advanced Engineered Materials | 291 | (4 | ) | 287 | ||||
Consumer Specialties | 334 | (1 | ) | 333 | ||||
Industrial Specialties | 70 | — | 70 | |||||
Acetyl Intermediates | 314 | (6 | ) | 308 | ||||
Other Activities (1) | (145 | ) | (10 | ) | (155 | ) | ||
Total | 864 | (21 | ) | 843 | ||||
Depreciation and Amortization Expense (3) | ||||||||
Advanced Engineered Materials | 72 | — | 72 | |||||
Consumer Specialties | 37 | — | 37 | |||||
Industrial Specialties | 41 | — | 41 | |||||
Acetyl Intermediates | 97 | — | 97 | |||||
Other Activities (1) | 11 | — | 11 | |||||
Total | 258 | — | 258 | |||||
Operating EBITDA | ||||||||
Advanced Engineered Materials | 363 | (4 | ) | 359 | ||||
Consumer Specialties | 371 | (1 | ) | 370 | ||||
Industrial Specialties | 111 | — | 111 | |||||
Acetyl Intermediates | 411 | (6 | ) | 405 | ||||
Other Activities (1) | (134 | ) | (10 | ) | (144 | ) | ||
Total | 1,122 | (21 | ) | 1,101 |
______________________________
(1) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
(2) | See Other charges and Other adjustments reconciliation for details. |
(3) | Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above. |
EX 99.3 - 11
Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Year Ended December 31, 2010 | |||||||||||||||||
As Previously Reported | Effect of Change | As Adjusted | |||||||||||||||
per share | per share | per share | |||||||||||||||
(In $ millions, except per share data) | |||||||||||||||||
Earnings (loss) from continuing operations | 426 | 2.69 | (65 | ) | (0.41 | ) | 361 | 2.28 | |||||||||
Deduct: Income tax (provision) benefit | (112 | ) | 40 | (72 | ) | ||||||||||||
Earnings (loss) from continuing operations before tax | 538 | (105 | ) | 433 | |||||||||||||
Other charges and other adjustments (1) | 113 | 84 | 197 | ||||||||||||||
Refinancing and related expenses | 16 | — | 16 | ||||||||||||||
Adjusted earnings (loss) from continuing operations before tax | 667 | (21 | ) | 646 | |||||||||||||
Income tax (provision) benefit on adjusted earnings (2) | (133 | ) | (3 | ) | (136 | ) | |||||||||||
Noncontrolling interests | — | — | — | ||||||||||||||
Adjusted earnings (loss) from continuing operations (3) | 534 | 3.37 | (24 | ) | (0.15 | ) | 510 | 3.22 | |||||||||
Diluted shares (in millions) (4) | |||||||||||||||||
Weighted average shares outstanding | 154.6 | — | 154.6 | ||||||||||||||
Assumed conversion of preferred stock | 1.6 | — | 1.6 | ||||||||||||||
Dilutive stock options | 1.8 | — | 1.8 | ||||||||||||||
Dilutive restricted stock units | 0.4 | — | 0.4 | ||||||||||||||
Total diluted shares | 158.4 | — | 158.4 |
______________________________
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | The adjusted effective tax rate for the year ended December 31, 2010 is 20% As previously reported and 21% As adjusted. |
(3) | The As adjusted amount excludes the immediate recognition of actuarial gains and losses and the impact of actual plan asset returns of 15.1% vs. expected plan asset returns of 8.06%. |
(4) | Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive. |
EX 99.3 - 12
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net: | Year Ended December 31, 2010 | |||
(In $ millions) | ||||
Employee termination benefits | 32 | |||
Kelsterbach plant relocation | 26 | |||
Plumbing actions | (59 | ) | ||
Insurance recoveries | (18 | ) | ||
Asset impairments | 74 | |||
Plant/office closures | 4 | |||
Commercial disputes | (13 | ) | ||
Total | 46 | |||
Other Adjustments: (1) | Year Ended December 31, 2010 | Income Statement Classification | ||
(In $ millions) | ||||
Business optimization | 16 | Cost of sales / SG&A | ||
Kelsterbach plant relocation | (13 | ) | Cost of sales | |
Plant closures | 17 | Cost of sales / SG&A | ||
Contract termination | 22 | Cost of sales | ||
(Gain) loss on disposition of assets | (10 | ) | (Gain) loss on disposition | |
Write-off of other productive assets | 18 | Cost of sales | ||
Actuarial (gain) loss on pension and postretirement plans | 84 | Cost of sales / SG&A / R&D | ||
Other | 17 | Various | ||
Total | 151 | |||
Total other charges and other adjustments | 197 |
______________________________
(1) | These items are included in net earnings but not included in Other charges (gains), net. |
EX 99.3 - 13
Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Year Ended December 31, 2009 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Net earnings (loss) | 498 | (95 | ) | 403 | ||||
(Earnings) loss from discontinued operations | (4 | ) | — | (4 | ) | |||
Interest income | (8 | ) | — | (8 | ) | |||
Interest expense | 207 | — | 207 | |||||
Income tax provision (benefit) | (243 | ) | (51 | ) | (294 | ) | ||
Other charges (gains), net (1) | 136 | — | 136 | |||||
Other adjustments (1) | (19 | ) | 104 | 85 | ||||
Adjusted EBIT | 567 | (42 | ) | 525 | ||||
Depreciation and amortization expense (2) | 290 | — | 290 | |||||
Operating EBITDA | 857 | (42 | ) | 815 |
Year Ended December 31, 2009 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Advanced Engineered Materials | 1 | — | 1 | |||||
Consumer Specialties | — | — | — | |||||
Industrial Specialties | 5 | — | 5 | |||||
Acetyl Intermediates | 12 | — | 12 | |||||
Other Activities (3) | — | — | — | |||||
Accelerated depreciation and amortization expense | 18 | — | 18 | |||||
Depreciation and amortization expense (2) | 290 | — | 290 | |||||
Total depreciation and amortization expense | 308 | — | 308 |
______________________________
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above. |
(3) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
EX 99.3 - 14
Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Year Ended December 31, 2009 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Operating Profit (Loss) | ||||||||
Advanced Engineered Materials | 38 | (2 | ) | 36 | ||||
Consumer Specialties | 231 | (1 | ) | 230 | ||||
Industrial Specialties | 89 | — | 89 | |||||
Acetyl Intermediates | 92 | (4 | ) | 88 | ||||
Other Activities (1) | (160 | ) | (139 | ) | (299 | ) | ||
Total | 290 | (146 | ) | 144 | ||||
Equity Earnings, Cost - Dividend Income and Other Income (Expense) | ||||||||
Advanced Engineered Materials | 76 | — | 76 | |||||
Consumer Specialties | 57 | — | 57 | |||||
Industrial Specialties | — | — | — | |||||
Acetyl Intermediates | 9 | — | 9 | |||||
Other Activities (1) | 18 | — | 18 | |||||
Total | 160 | — | 160 | |||||
Other Charges and Other Adjustments (2) | ||||||||
Advanced Engineered Materials | — | — | — | |||||
Consumer Specialties | 10 | — | 10 | |||||
Industrial Specialties | (26 | ) | — | (26 | ) | |||
Acetyl Intermediates | 103 | — | 103 | |||||
Other Activities (1) | 30 | 104 | 134 | |||||
Total | 117 | 104 | 221 | |||||
Adjusted EBIT | ||||||||
Advanced Engineered Materials | 114 | (2 | ) | 112 | ||||
Consumer Specialties | 298 | (1 | ) | 297 | ||||
Industrial Specialties | 63 | — | 63 | |||||
Acetyl Intermediates | 204 | (4 | ) | 200 | ||||
Other Activities (1) | (112 | ) | (35 | ) | (147 | ) | ||
Total | 567 | (42 | ) | 525 | ||||
Depreciation and Amortization Expense (3) | ||||||||
Advanced Engineered Materials | 72 | — | 72 | |||||
Consumer Specialties | 50 | — | 50 | |||||
Industrial Specialties | 46 | — | 46 | |||||
Acetyl Intermediates | 111 | — | 111 | |||||
Other Activities (1) | 11 | — | 11 | |||||
Total | 290 | — | 290 | |||||
Operating EBITDA | ||||||||
Advanced Engineered Materials | 186 | (2 | ) | 184 | ||||
Consumer Specialties | 348 | (1 | ) | 347 | ||||
Industrial Specialties | 109 | — | 109 | |||||
Acetyl Intermediates | 315 | (4 | ) | 311 | ||||
Other Activities (1) | (101 | ) | (35 | ) | (136 | ) | ||
Total | 857 | (42 | ) | 815 |
______________________________
(1) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
(2) | See Other charges and Other adjustments reconciliation for details. |
(3) | Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above. |
EX 99.3 - 15
Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Year Ended December 31, 2009 | |||||||||||||||||
As Previously Reported | Effect of Change | As Adjusted | |||||||||||||||
per share | per share | per share | |||||||||||||||
(In $ millions, except per share data) | |||||||||||||||||
Earnings (loss) from continuing operations | 494 | 3.14 | (95 | ) | (0.60 | ) | 399 | 2.54 | |||||||||
Deduct: Income tax (provision) benefit | 243 | 51 | 294 | ||||||||||||||
Earnings (loss) from continuing operations before tax | 251 | (146 | ) | 105 | |||||||||||||
Other charges and other adjustments (1) | 117 | 104 | 221 | ||||||||||||||
Adjusted earnings (loss) from continuing operations before tax | 368 | (42 | ) | 326 | |||||||||||||
Income tax (provision) benefit on adjusted earnings (2) | (93 | ) | 15 | (78 | ) | ||||||||||||
Noncontrolling interests | — | — | — | ||||||||||||||
Adjusted earnings (loss) from continuing operations (3) | 275 | 1.75 | (27 | ) | (0.17 | ) | 248 | 1.58 | |||||||||
Diluted shares (in millions) (4) | |||||||||||||||||
Weighted average shares outstanding | 143.7 | — | 143.7 | ||||||||||||||
Assumed conversion of preferred stock | 12.1 | — | 12.1 | ||||||||||||||
Dilutive stock options | 1.1 | — | 1.1 | ||||||||||||||
Dilutive restricted stock units | 0.2 | — | 0.2 | ||||||||||||||
Total diluted shares | 157.1 | — | 157.1 |
______________________________
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | The average adjusted effective tax rate for the year ended December 31, 2009 is 25% As previously reported and 24% As adjusted. |
(3) | The As adjusted amount excludes the immediate recognition of actuarial gains and losses and the impact of actual plan asset returns of 17.9% vs. expected plan asset returns of 7.94%. |
(4) | Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive. |
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net: | Year Ended December 31, 2009 | |||
(In $ millions) | ||||
Employee termination benefits | 105 | |||
Kelsterbach plant relocation | 16 | |||
Plumbing actions | (10 | ) | ||
Insurance recoveries | (6 | ) | ||
Asset impairments | 14 | |||
Plant/office closures | 17 | |||
Total | 136 | |||
Other Adjustments: (1) | Year Ended December 31, 2009 | Income Statement Classification | ||
(In $ millions) | ||||
Business optimization | 7 | SG&A | ||
Plant closures | 25 | Cost of sales | ||
(Gain) on sale of PVOH business | (34 | ) | (Gain) loss on disposition | |
Actuarial (gain) loss on pension and postretirement plans | 104 | Cost of sales / SG&A / R&D | ||
Other | (17 | ) | Various | |
Total | 85 | |||
Total other charges and other adjustments | 221 |
______________________________
(1) | These items are included in net earnings but not included in Other charges (gains), net. |
EX 99.3 - 16
Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Year Ended December 31, 2008 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Net earnings (loss) | 280 | (542 | ) | (262 | ) | |||
(Earnings) loss from discontinued operations | 90 | — | 90 | |||||
Interest income | (31 | ) | — | (31 | ) | |||
Interest expense | 261 | — | 261 | |||||
Income tax provision (benefit) | 63 | (5 | ) | 58 | ||||
Other charges (gains), net (1) | 108 | — | 108 | |||||
Other adjustments (1) | 63 | 551 | 614 | |||||
Adjusted EBIT | 834 | 4 | 838 | |||||
Depreciation and amortization expense (2) | 329 | — | 329 | |||||
Operating EBITDA | 1,163 | 4 | 1,167 |
Year Ended December 31, 2008 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Advanced Engineered Materials | — | — | — | |||||
Consumer Specialties | — | — | — | |||||
Industrial Specialties | 5 | — | 5 | |||||
Acetyl Intermediates | 16 | — | 16 | |||||
Other Activities (3) | — | — | — | |||||
Accelerated depreciation and amortization expense | 21 | — | 21 | |||||
Depreciation and amortization expense (2) | 329 | — | 329 | |||||
Total depreciation and amortization expense | 350 | — | 350 |
______________________________
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above. |
(3) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
EX 99.3 - 17
Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Year Ended December 31, 2008 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Operating Profit (Loss) | ||||||||
Advanced Engineered Materials | 37 | (5 | ) | 32 | ||||
Consumer Specialties | 190 | (1 | ) | 189 | ||||
Industrial Specialties | 47 | (2 | ) | 45 | ||||
Acetyl Intermediates | 304 | (4 | ) | 300 | ||||
Other Activities (1) | (138 | ) | (535 | ) | (673 | ) | ||
Total | 440 | (547 | ) | (107 | ) | |||
Equity Earnings, Cost - Dividend Income and Other Income (Expense) | ||||||||
Advanced Engineered Materials | 153 | — | 153 | |||||
Consumer Specialties | 47 | — | 47 | |||||
Industrial Specialties | — | — | — | |||||
Acetyl Intermediates | 8 | — | 8 | |||||
Other Activities (1) | 15 | — | 15 | |||||
Total | 223 | — | 223 | |||||
Other Charges and Other Adjustments (2) | ||||||||
Advanced Engineered Materials | 25 | — | 25 | |||||
Consumer Specialties | 3 | — | 3 | |||||
Industrial Specialties | 13 | — | 13 | |||||
Acetyl Intermediates | 108 | — | 108 | |||||
Other Activities (1) | 22 | 551 | 573 | |||||
Total | 171 | 551 | 722 | |||||
Adjusted EBIT | ||||||||
Advanced Engineered Materials | 215 | (5 | ) | 210 | ||||
Consumer Specialties | 240 | (1 | ) | 239 | ||||
Industrial Specialties | 60 | (2 | ) | 58 | ||||
Acetyl Intermediates | 420 | (4 | ) | 416 | ||||
Other Activities (1) | (101 | ) | 16 | (85 | ) | |||
Total | 834 | 4 | 838 | |||||
Depreciation and Amortization Expense (3) | ||||||||
Advanced Engineered Materials | 76 | — | 76 | |||||
Consumer Specialties | 53 | — | 53 | |||||
Industrial Specialties | 57 | — | 57 | |||||
Acetyl Intermediates | 134 | — | 134 | |||||
Other Activities (1) | 9 | — | 9 | |||||
Total | 329 | — | 329 | |||||
Operating EBITDA | ||||||||
Advanced Engineered Materials | 291 | (5 | ) | 286 | ||||
Consumer Specialties | 293 | (1 | ) | 292 | ||||
Industrial Specialties | 117 | (2 | ) | 115 | ||||
Acetyl Intermediates | 554 | (4 | ) | 550 | ||||
Other Activities (1) | (92 | ) | 16 | (76 | ) | |||
Total | 1,163 | 4 | 1,167 |
______________________________
(1) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
(2) | See Other charges and Other adjustments reconciliation for details. |
(3) | Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above. |
EX 99.3 - 18
Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Year Ended December 31, 2008 | |||||||||||||||||
As Previously Reported | Effect of Change | As Adjusted | |||||||||||||||
per share | per share | per share | |||||||||||||||
(In $ millions, except per share data) | |||||||||||||||||
Earnings (loss) from continuing operations | 370 | 2.27 | (542 | ) | (3.49 | ) | (172 | ) | (1.22 | ) | |||||||
Deduct: Income tax (provision) benefit | (63 | ) | 5 | (58 | ) | ||||||||||||
Earnings (loss) from continuing operations before tax | 433 | (547 | ) | (114 | ) | ||||||||||||
Other charges and other adjustments (1) | 171 | 551 | 722 | ||||||||||||||
Adjusted earnings (loss) from continuing operations before tax | 604 | 4 | 608 | ||||||||||||||
Income tax (provision) benefit on adjusted earnings (2) | (157 | ) | (1 | ) | (158 | ) | |||||||||||
Noncontrolling interests | 1 | — | 1 | ||||||||||||||
Adjusted earnings (loss) from continuing operations (4) | 448 | 2.74 | (3) | 3 | 0.02 | 451 | 2.76 | ||||||||||
Diluted shares (in millions) (5) | |||||||||||||||||
Weighted average shares outstanding | 148.4 | — | 148.4 | ||||||||||||||
Assumed conversion of preferred stock | 12.0 | — | 12.0 | ||||||||||||||
Dilutive stock options | 2.6 | — | 2.6 | ||||||||||||||
Dilutive restricted stock units | 0.5 | — | 0.5 | ||||||||||||||
Total diluted shares | 163.5 | — | 163.5 |
______________________________
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | The adjusted effective tax rate is 26% for the year ended December 31, 2008. |
(3) | Reported for the first time since retrospectively applying the equity method of accounting to the Company's investment in National Methanol Company (“Ibn Sina”). See the Company's Form 10-K for the year ended December 31, 2010 for more information. |
(4) | The As adjusted amount excludes the immediate recognition of actuarial gains and losses and the impact of actual plan asset returns of (18.2)% vs. expected plan asset returns of 8.05%. |
(5) | Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive. |
EX 99.3 - 19
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net: | Year Ended December 31, 2008 | |||
(In $ millions) | ||||
Employee termination benefits | 21 | |||
Kelsterbach plant relocation | 12 | |||
Insurance recoveries | (38 | ) | ||
Asset impairments | 115 | |||
Plant/office closures | 7 | |||
Commercial disputes | (8 | ) | ||
Other | (1 | ) | ||
Total | 108 | |||
Other Adjustments: (1) | Year Ended December 31, 2008 | Income Statement Classification | ||
(In $ millions) | ||||
Business optimization | 33 | SG&A | ||
Kelsterbach plant relocation | (4 | ) | Cost of sales | |
Plant closures | 23 | Cost of sales | ||
Ethylene pipeline exit costs | (2 | ) | Other (income) expense, net | |
Actuarial (gain) loss on pension and postretirement plans | 551 | Cost of sales / SG&A / R&D | ||
Other | 13 | Various | ||
Total | 614 | |||
Total other charges and other adjustments | 722 |
______________________________
(1) | These items are included in net earnings but not included in Other charges (gains), net. |
EX 99.3 - 20
Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Three Months Ended December 31, 2012 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Net earnings (loss) | 95 | (264 | ) | (169 | ) | |||
(Earnings) loss from discontinued operations | 2 | — | 2 | |||||
Interest income | (1 | ) | — | (1 | ) | |||
Interest expense | 51 | — | 51 | |||||
Refinancing expense | 3 | — | 3 | |||||
Income tax provision (benefit) | 16 | (112 | ) | (96 | ) | |||
Other charges (gains), net (1) | 13 | — | 13 | |||||
Other adjustments (1) | (4 | ) | 389 | 385 | ||||
Adjusted EBIT | 175 | 13 | 188 | |||||
Depreciation and amortization expense (2) | 79 | — | 79 | |||||
Operating EBITDA | 254 | 13 | 267 |
Three Months Ended December 31, 2012 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Advanced Engineered Materials | — | — | — | |||||
Consumer Specialties | 2 | — | 2 | |||||
Industrial Specialties | — | — | — | |||||
Acetyl Intermediates | — | — | — | |||||
Other Activities (3) | — | — | — | |||||
Accelerated depreciation and amortization expense | 2 | — | 2 | |||||
Depreciation and amortization expense (2) | 79 | — | 79 | |||||
Total depreciation and amortization expense | 81 | — | 81 |
______________________________
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above. |
(3) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
EX 99.3 - 21
Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Three Months Ended December 31, 2012 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Operating Profit (Loss) | ||||||||
Advanced Engineered Materials | 1 | 3 | 4 | |||||
Consumer Specialties | 60 | 2 | 62 | |||||
Industrial Specialties | 6 | — | 6 | |||||
Acetyl Intermediates | 64 | 2 | 66 | |||||
Other Activities (1) | (45 | ) | (383 | ) | (428 | ) | ||
Total | 86 | (376 | ) | (290 | ) | |||
Equity Earnings, Cost - Dividend Income and Other Income (Expense) | ||||||||
Advanced Engineered Materials | 47 | — | 47 | |||||
Consumer Specialties | 5 | — | 5 | |||||
Industrial Specialties | — | — | — | |||||
Acetyl Intermediates | 8 | — | 8 | |||||
Other Activities (1) | 20 | — | 20 | |||||
Total | 80 | — | 80 | |||||
Other Charges and Other Adjustments (2) | ||||||||
Advanced Engineered Materials | 11 | — | 11 | |||||
Consumer Specialties | 11 | — | 11 | |||||
Industrial Specialties | — | — | — | |||||
Acetyl Intermediates | (5 | ) | — | (5 | ) | |||
Other Activities (1) | (8 | ) | 389 | 381 | ||||
Total | 9 | 389 | 398 | |||||
Adjusted EBIT | ||||||||
Advanced Engineered Materials | 59 | 3 | 62 | |||||
Consumer Specialties | 76 | 2 | 78 | |||||
Industrial Specialties | 6 | — | 6 | |||||
Acetyl Intermediates | 67 | 2 | 69 | |||||
Other Activities (1) | (33 | ) | 6 | (27 | ) | |||
Total | 175 | 13 | 188 | |||||
Depreciation and Amortization Expense (3) | ||||||||
Advanced Engineered Materials | 29 | — | 29 | |||||
Consumer Specialties | 10 | — | 10 | |||||
Industrial Specialties | 14 | — | 14 | |||||
Acetyl Intermediates | 21 | — | 21 | |||||
Other Activities (1) | 5 | — | 5 | |||||
Total | 79 | — | 79 | |||||
Operating EBITDA | ||||||||
Advanced Engineered Materials | 88 | 3 | 91 | |||||
Consumer Specialties | 86 | 2 | 88 | |||||
Industrial Specialties | 20 | — | 20 | |||||
Acetyl Intermediates | 88 | 2 | 90 | |||||
Other Activities (1) | (28 | ) | 6 | (22 | ) | |||
Total | 254 | 13 | 267 |
______________________________
(1) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
(2) | See Other charges and Other adjustments reconciliation for details. |
(3) | Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above. |
EX 99.3 - 22
Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Three Months Ended December 31, 2012 | |||||||||||||||||
As Previously Reported | Effect of Change | As Adjusted | |||||||||||||||
per share | per share | per share | |||||||||||||||
(In $ millions, except per share data) | |||||||||||||||||
Earnings (loss) from continuing operations | 97 | 0.60 | (264 | ) | (1.65 | ) | (167 | ) | (1.05 | ) | |||||||
Deduct: Income tax (provision) benefit | (16 | ) | 112 | 96 | |||||||||||||
Earnings (loss) from continuing operations before tax | 113 | (376 | ) | (263 | ) | ||||||||||||
Other charges and other adjustments (1) | 9 | 389 | 398 | ||||||||||||||
Refinancing and related expenses | 8 | — | 8 | ||||||||||||||
Adjusted earnings (loss) from continuing operations before tax | 130 | 13 | 143 | ||||||||||||||
Income tax (provision) benefit on adjusted earnings (2) | (22 | ) | (2 | ) | (24 | ) | |||||||||||
Noncontrolling interests | — | — | — | ||||||||||||||
Adjusted earnings (loss) from continuing operations (3) | 108 | 0.67 | 11 | 0.07 | 119 | 0.74 | |||||||||||
Diluted shares (in millions) (4) | |||||||||||||||||
Weighted average shares outstanding | 159.5 | — | 159.5 | ||||||||||||||
Dilutive stock options | 0.2 | — | 0.2 | ||||||||||||||
Dilutive restricted stock units | 0.5 | — | 0.5 | ||||||||||||||
Total diluted shares | 160.2 | — | 160.2 |
______________________________
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | The adjusted effective tax rate is 17% for the three months ended December 31, 2012. |
(3) | The As adjusted amount excludes the immediate recognition of actuarial gains and losses and the impact of actual plan asset returns of 13.1% vs. expected plan asset returns of 8.06%. |
(4) | Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive. |
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net: | Three Months Ended December 31, 2012 | |||
(In $ millions) | ||||
Employee termination benefits | 4 | |||
Kelsterbach plant relocation | 2 | |||
Plumbing actions | (1 | ) | ||
Asset impairments | 8 | |||
Total | 13 | |||
Other Adjustments: (1) | Three Months Ended December 31, 2012 | Income Statement Classification | ||
(In $ millions) | ||||
Business optimization | 1 | SG&A | ||
Kelsterbach plant relocation | 10 | Cost of sales | ||
Plant closures | 5 | Cost of sales / SG&A | ||
InfraServ Hoechst debt restructuring | (22 | ) | Equity in net (earnings) loss of affiliates | |
Actuarial loss on pension and postretirement plans | 389 | Cost of sales / SG&A / R&D | ||
Other | 2 | Cost of sales | ||
Total | 385 | |||
Total other charges and other adjustments | 398 |
______________________________
(1) | These items are included in net earnings but not included in Other charges (gains), net. |
EX 99.3 - 23
Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Three Months Ended September 30, 2012 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Net earnings (loss) | 117 | 10 | 127 | |||||
(Earnings) loss from discontinued operations | 2 | — | 2 | |||||
Interest income | — | — | — | |||||
Interest expense | 44 | — | 44 | |||||
Refinancing expense | — | — | — | |||||
Income tax provision (benefit) | 54 | 3 | 57 | |||||
Other charges (gains), net (1) | (2 | ) | — | (2 | ) | |||
Other adjustments (1) | 8 | — | 8 | |||||
Adjusted EBIT | 223 | 13 | 236 | |||||
Depreciation and amortization expense (2) | 75 | — | 75 | |||||
Operating EBITDA | 298 | 13 | 311 |
Three Months Ended September 30, 2012 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Advanced Engineered Materials | — | — | — | |||||
Consumer Specialties | 3 | — | 3 | |||||
Industrial Specialties | — | — | — | |||||
Acetyl Intermediates | — | — | — | |||||
Other Activities (3) | — | — | — | |||||
Accelerated depreciation and amortization expense | 3 | — | 3 | |||||
Depreciation and amortization expense (2) | 75 | — | 75 | |||||
Total depreciation and amortization expense | 78 | — | 78 |
______________________________
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above. |
(3) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
EX 99.3 - 24
Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Three Months Ended September 30, 2012 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Operating Profit (Loss) | ||||||||
Advanced Engineered Materials | 43 | 1 | 44 | |||||
Consumer Specialties | 70 | 2 | 72 | |||||
Industrial Specialties | 23 | 2 | 25 | |||||
Acetyl Intermediates | 62 | 1 | 63 | |||||
Other Activities (1) | (35 | ) | 7 | (28 | ) | |||
Total | 163 | 13 | 176 | |||||
Equity Earnings, Cost - Dividend Income and Other Income (Expense) | ||||||||
Advanced Engineered Materials | 45 | — | 45 | |||||
Consumer Specialties | — | — | — | |||||
Industrial Specialties | — | — | — | |||||
Acetyl Intermediates | 2 | — | 2 | |||||
Other Activities (1) | 7 | — | 7 | |||||
Total | 54 | — | 54 | |||||
Other Charges and Other Adjustments (2) | ||||||||
Advanced Engineered Materials | (8 | ) | — | (8 | ) | |||
Consumer Specialties | 7 | — | 7 | |||||
Industrial Specialties | — | — | — | |||||
Acetyl Intermediates | 7 | — | 7 | |||||
Other Activities (1) | — | — | — | |||||
Total | 6 | — | 6 | |||||
Adjusted EBIT | ||||||||
Advanced Engineered Materials | 80 | 1 | 81 | |||||
Consumer Specialties | 77 | 2 | 79 | |||||
Industrial Specialties | 23 | 2 | 25 | |||||
Acetyl Intermediates | 71 | 1 | 72 | |||||
Other Activities (1) | (28 | ) | 7 | (21 | ) | |||
Total | 223 | 13 | 236 | |||||
Depreciation and Amortization Expense (3) | ||||||||
Advanced Engineered Materials | 29 | — | 29 | |||||
Consumer Specialties | 10 | — | 10 | |||||
Industrial Specialties | 13 | — | 13 | |||||
Acetyl Intermediates | 20 | — | 20 | |||||
Other Activities (1) | 3 | — | 3 | |||||
Total | 75 | — | 75 | |||||
Operating EBITDA | ||||||||
Advanced Engineered Materials | 109 | 1 | 110 | |||||
Consumer Specialties | 87 | 2 | 89 | |||||
Industrial Specialties | 36 | 2 | 38 | |||||
Acetyl Intermediates | 91 | 1 | 92 | |||||
Other Activities (1) | (25 | ) | 7 | (18 | ) | |||
Total | 298 | 13 | 311 |
______________________________
(1) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
(2) | See Other charges and Other adjustments reconciliation for details. |
(3) | Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above. |
EX 99.3 - 25
Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Three Months Ended September 30, 2012 | |||||||||||||||||
As Previously Reported | Effect of Change | As Adjusted | |||||||||||||||
per share | per share | per share | |||||||||||||||
(In $ millions, except per share data) | |||||||||||||||||
Earnings (loss) from continuing operations | 119 | 0.74 | 10 | 0.06 | 129 | 0.80 | |||||||||||
Deduct: Income tax (provision) benefit | (54 | ) | (3 | ) | (57 | ) | |||||||||||
Earnings (loss) from continuing operations before tax | 173 | 13 | 186 | ||||||||||||||
Other charges and other adjustments (1) | 6 | — | 6 | ||||||||||||||
Refinancing and related expenses | — | — | — | ||||||||||||||
Adjusted earnings (loss) from continuing operations before tax | 179 | 13 | 192 | ||||||||||||||
Income tax (provision) benefit on adjusted earnings (2) | (30 | ) | (3 | ) | (33 | ) | |||||||||||
Noncontrolling interests | — | — | — | ||||||||||||||
Adjusted earnings (loss) from continuing operations | 149 | 0.93 | 10 | 0.06 | 159 | 0.99 | |||||||||||
Diluted shares (in millions) (3) | |||||||||||||||||
Weighted average shares outstanding | 159.1 | — | 159.1 | ||||||||||||||
Dilutive stock options | 0.3 | — | 0.3 | ||||||||||||||
Dilutive restricted stock units | 0.7 | — | 0.7 | ||||||||||||||
Total diluted shares | 160.1 | — | 160.1 |
______________________________
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | The adjusted effective tax rate is 17% for the three months ended September 30, 2012. |
(3) | Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive. |
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net: | Three Months Ended September 30, 2012 | |||
(In $ millions) | ||||
Employee termination benefits | 1 | |||
Kelsterbach plant relocation | 3 | |||
Plumbing actions | (4 | ) | ||
Commercial disputes | (2 | ) | ||
Total | (2 | ) | ||
Other Adjustments: (1) | Three Months Ended September 30, 2012 | Income Statement Classification | ||
(In $ millions) | ||||
Kelsterbach plant relocation | (7 | ) | Cost of sales | |
Plant closures | 10 | Cost of sales / SG&A | ||
(Gain) loss on disposition of assets | 1 | (Gain) loss on disposition | ||
Other | 4 | Various | ||
Total | 8 | |||
Total other charges and other adjustments | 6 |
______________________________
(1) | These items are included in net earnings but not included in Other charges (gains), net. |
EX 99.3 - 26
Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Three Months Ended June 30, 2012 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Net earnings (loss) | 210 | 11 | 221 | |||||
(Earnings) loss from discontinued operations | — | — | — | |||||
Interest income | — | — | — | |||||
Interest expense | 45 | — | 45 | |||||
Refinancing expense | — | — | — | |||||
Income tax provision (benefit) | 54 | 3 | 57 | |||||
Other charges (gains), net (1) | 3 | — | 3 | |||||
Other adjustments (1) | 16 | — | 16 | |||||
Adjusted EBIT | 328 | 14 | 342 | |||||
Depreciation and amortization expense (2) | 74 | — | 74 | |||||
Operating EBITDA | 402 | 14 | 416 |
Three Months Ended June 30, 2012 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Advanced Engineered Materials | — | — | — | |||||
Consumer Specialties | 1 | — | 1 | |||||
Industrial Specialties | — | — | — | |||||
Acetyl Intermediates | — | — | — | |||||
Other Activities (3) | — | — | — | |||||
Accelerated depreciation and amortization expense | 1 | — | 1 | |||||
Depreciation and amortization expense (2) | 74 | — | 74 | |||||
Total depreciation and amortization expense | 75 | — | 75 |
______________________________
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above. |
(3) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
EX 99.3 - 27
Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Three Months Ended June 30, 2012 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Operating Profit (Loss) | ||||||||
Advanced Engineered Materials | 21 | 2 | 23 | |||||
Consumer Specialties | 75 | 2 | 77 | |||||
Industrial Specialties | 34 | 1 | 35 | |||||
Acetyl Intermediates | 77 | 1 | 78 | |||||
Other Activities (1) | (43 | ) | 8 | (35 | ) | |||
Total | 164 | 14 | 178 | |||||
Equity Earnings, Cost - Dividend Income and Other Income (Expense) | ||||||||
Advanced Engineered Materials | 55 | — | 55 | |||||
Consumer Specialties | 84 | — | 84 | |||||
Industrial Specialties | — | — | — | |||||
Acetyl Intermediates | 2 | — | 2 | |||||
Other Activities (1) | 4 | — | 4 | |||||
Total | 145 | — | 145 | |||||
Other Charges and Other Adjustments (2) | ||||||||
Advanced Engineered Materials | 10 | — | 10 | |||||
Consumer Specialties | (1 | ) | — | (1 | ) | |||
Industrial Specialties | — | — | — | |||||
Acetyl Intermediates | 1 | — | 1 | |||||
Other Activities (1) | 9 | — | 9 | |||||
Total | 19 | — | 19 | |||||
Adjusted EBIT | ||||||||
Advanced Engineered Materials | 86 | 2 | 88 | |||||
Consumer Specialties | 158 | 2 | 160 | |||||
Industrial Specialties | 34 | 1 | 35 | |||||
Acetyl Intermediates | 80 | 1 | 81 | |||||
Other Activities (1) | (30 | ) | 8 | (22 | ) | |||
Total | 328 | 14 | 342 | |||||
Depreciation and Amortization Expense (3) | ||||||||
Advanced Engineered Materials | 28 | — | 28 | |||||
Consumer Specialties | 10 | — | 10 | |||||
Industrial Specialties | 13 | — | 13 | |||||
Acetyl Intermediates | 19 | — | 19 | |||||
Other Activities (1) | 4 | — | 4 | |||||
Total | 74 | — | 74 | |||||
Operating EBITDA | ||||||||
Advanced Engineered Materials | 114 | 2 | 116 | |||||
Consumer Specialties | 168 | 2 | 170 | |||||
Industrial Specialties | 47 | 1 | 48 | |||||
Acetyl Intermediates | 99 | 1 | 100 | |||||
Other Activities (1) | (26 | ) | 8 | (18 | ) | |||
Total | 402 | 14 | 416 |
______________________________
(1) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
(2) | See Other charges and Other adjustments reconciliation for details. |
(3) | Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above. |
EX 99.3 - 28
Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Three Months Ended June 30, 2012 | |||||||||||||||||
As Previously Reported | Effect of Change | As Adjusted | |||||||||||||||
per share | per share | per share | |||||||||||||||
(In $ millions, except per share data) | |||||||||||||||||
Earnings (loss) from continuing operations | 210 | 1.31 | 11 | 0.07 | 221 | 1.38 | |||||||||||
Deduct: Income tax (provision) benefit | (54 | ) | (3 | ) | (57 | ) | |||||||||||
Earnings (loss) from continuing operations before tax | 264 | 14 | 278 | ||||||||||||||
Other charges and other adjustments (1) | 19 | — | 19 | ||||||||||||||
Refinancing and related expenses | — | — | — | ||||||||||||||
Adjusted earnings (loss) from continuing operations before tax | 283 | 14 | 297 | ||||||||||||||
Income tax (provision) benefit on adjusted earnings (2) | (48 | ) | (2 | ) | (50 | ) | |||||||||||
Noncontrolling interests | — | — | — | ||||||||||||||
Adjusted earnings (loss) from continuing operations | 235 | 1.47 | 12 | 0.08 | 247 | 1.55 | |||||||||||
Diluted shares (in millions) (3) | |||||||||||||||||
Weighted average shares outstanding | 158.2 | — | 158.2 | ||||||||||||||
Dilutive stock options | 1.0 | — | 1.0 | ||||||||||||||
Dilutive restricted stock units | 0.6 | — | 0.6 | ||||||||||||||
Total diluted shares | 159.8 | — | 159.8 |
______________________________
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | The adjusted effective tax rate is 17% for the three months ended June 30, 2012. |
(3) | Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive. |
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net: | Three Months Ended June 30, 2012 | |||
(In $ millions) | ||||
Employee termination benefits | 1 | |||
Kelsterbach plant relocation | 2 | |||
Total | 3 | |||
Other Adjustments: (1) | Three Months Ended June 30, 2012 | Income Statement Classification | ||
(In $ millions) | ||||
Business optimization | 3 | SG&A | ||
Kelsterbach plant relocation | 8 | Cost of sales | ||
Plant closures | 2 | Cost of sales | ||
Other | 3 | Various | ||
Total | 16 | |||
Total other charges and other adjustments | 19 |
______________________________
(1) | These items are included in net earnings but not included in Other charges (gains), net. |
EX 99.3 - 29
Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Three Months Ended March 31, 2012 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Net earnings (loss) | 183 | 10 | 193 | |||||
(Earnings) loss from discontinued operations | — | — | — | |||||
Interest income | (1 | ) | — | (1 | ) | |||
Interest expense | 45 | — | 45 | |||||
Refinancing expense | — | — | — | |||||
Income tax provision (benefit) | (76 | ) | 3 | (73 | ) | |||
Other charges (gains), net (1) | — | — | — | |||||
Other adjustments (1) | 32 | — | 32 | |||||
Adjusted EBIT | 183 | 13 | 196 | |||||
Depreciation and amortization expense (2) | 72 | — | 72 | |||||
Operating EBITDA | 255 | 13 | 268 |
Three Months Ended March 31, 2012 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Advanced Engineered Materials | — | — | — | |||||
Consumer Specialties | — | — | — | |||||
Industrial Specialties | 2 | — | 2 | |||||
Acetyl Intermediates | — | — | — | |||||
Other Activities (3) | — | — | — | |||||
Accelerated depreciation and amortization expense | 2 | — | 2 | |||||
Depreciation and amortization expense (2) | 72 | — | 72 | |||||
Total depreciation and amortization expense | 74 | — | 74 |
______________________________
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above. |
(3) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
EX 99.3 - 30
Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Three Months Ended March 31, 2012 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Operating Profit (Loss) | ||||||||
Advanced Engineered Materials | 21 | 3 | 24 | |||||
Consumer Specialties | 39 | 1 | 40 | |||||
Industrial Specialties | 19 | 1 | 20 | |||||
Acetyl Intermediates | 60 | 2 | 62 | |||||
Other Activities (1) | (41 | ) | 6 | (35 | ) | |||
Total | 98 | 13 | 111 | |||||
Equity Earnings, Cost - Dividend Income and Other Income (Expense) | ||||||||
Advanced Engineered Materials | 43 | — | 43 | |||||
Consumer Specialties | 1 | — | 1 | |||||
Industrial Specialties | — | — | — | |||||
Acetyl Intermediates | 1 | — | 1 | |||||
Other Activities (1) | 8 | — | 8 | |||||
Total | 53 | — | 53 | |||||
Other Charges and Other Adjustments (2) | ||||||||
Advanced Engineered Materials | 3 | — | 3 | |||||
Consumer Specialties | 17 | — | 17 | |||||
Industrial Specialties | 2 | — | 2 | |||||
Acetyl Intermediates | 2 | — | 2 | |||||
Other Activities (1) | 8 | — | 8 | |||||
Total | 32 | — | 32 | |||||
Adjusted EBIT | ||||||||
Advanced Engineered Materials | 67 | 3 | 70 | |||||
Consumer Specialties | 57 | 1 | 58 | |||||
Industrial Specialties | 21 | 1 | 22 | |||||
Acetyl Intermediates | 63 | 2 | 65 | |||||
Other Activities (1) | (25 | ) | 6 | (19 | ) | |||
Total | 183 | 13 | 196 | |||||
Depreciation and Amortization Expense (3) | ||||||||
Advanced Engineered Materials | 27 | — | 27 | |||||
Consumer Specialties | 9 | — | 9 | |||||
Industrial Specialties | 13 | — | 13 | |||||
Acetyl Intermediates | 20 | — | 20 | |||||
Other Activities (1) | 3 | — | 3 | |||||
Total | 72 | — | 72 | |||||
Operating EBITDA | ||||||||
Advanced Engineered Materials | 94 | 3 | 97 | |||||
Consumer Specialties | 66 | 1 | 67 | |||||
Industrial Specialties | 34 | 1 | 35 | |||||
Acetyl Intermediates | 83 | 2 | 85 | |||||
Other Activities (1) | (22 | ) | 6 | (16 | ) | |||
Total | 255 | 13 | 268 |
______________________________
(1) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
(2) | See Other charges and Other adjustments reconciliation for details. |
(3) | Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above. |
EX 99.3 - 31
Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Three Months Ended March 31, 2012 | |||||||||||||||||
As Previously Reported | Effect of Change | As Adjusted | |||||||||||||||
per share | per share | per share | |||||||||||||||
(In $ millions, except per share data) | |||||||||||||||||
Earnings (loss) from continuing operations | 183 | 1.15 | 10 | 0.06 | 193 | 1.21 | |||||||||||
Deduct: Income tax (provision) benefit | 76 | (3 | ) | 73 | |||||||||||||
Earnings (loss) from continuing operations before tax | 107 | 13 | 120 | ||||||||||||||
Other charges and other adjustments (1) | 32 | — | 32 | ||||||||||||||
Refinancing and related expenses | — | — | — | ||||||||||||||
Adjusted earnings (loss) from continuing operations before tax | 139 | 13 | 152 | ||||||||||||||
Income tax (provision) benefit on adjusted earnings (2) | (24 | ) | (2 | ) | (26 | ) | |||||||||||
Noncontrolling interests | — | — | — | ||||||||||||||
Adjusted earnings (loss) from continuing operations | 115 | 0.72 | 11 | 0.07 | 126 | 0.79 | |||||||||||
Diluted shares (in millions) (3) | |||||||||||||||||
Weighted average shares outstanding | 156.5 | — | 156.5 | ||||||||||||||
Dilutive stock options | 1.9 | — | 1.9 | ||||||||||||||
Dilutive restricted stock units | 0.7 | — | 0.7 | ||||||||||||||
Total diluted shares | 159.1 | — | 159.1 |
______________________________
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | The adjusted effective tax rate is 17% for the three months ended March 31, 2012. |
(3) | Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive. |
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net: | Three Months Ended March 31, 2012 | |||
(In $ millions) | ||||
Total | — | |||
Other Adjustments: (1) | Three Months Ended March 31, 2012 | Income Statement Classification | ||
(In $ millions) | ||||
Business optimization | 5 | SG&A | ||
Kelsterbach plant relocation | 3 | Cost of sales | ||
Plant closures | 4 | Cost of sales / SG&A | ||
Acetate production interruption costs | 10 | Cost of sales | ||
Other | 10 | Various | ||
Total | 32 | |||
Total other charges and other adjustments | 32 |
______________________________
(1) | These items are included in net earnings but not included in Other charges (gains), net. |
EX 99.3 - 32
Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Three Months Ended December 31, 2011 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Net earnings (loss) | 95 | (190 | ) | (95 | ) | |||
(Earnings) loss from discontinued operations | 1 | — | 1 | |||||
Interest income | (1 | ) | — | (1 | ) | |||
Interest expense | 55 | — | 55 | |||||
Refinancing expense | — | — | — | |||||
Income tax provision (benefit) | (2 | ) | (112 | ) | (114 | ) | ||
Other charges (gains), net (1) | 9 | — | 9 | |||||
Other adjustments (1) | 10 | 306 | 316 | |||||
Adjusted EBIT | 167 | 4 | 171 | |||||
Depreciation and amortization expense (2) | 76 | — | 76 | |||||
Operating EBITDA | 243 | 4 | 247 |
Three Months Ended December 31, 2011 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Advanced Engineered Materials | — | — | — | |||||
Consumer Specialties | 1 | — | 1 | |||||
Industrial Specialties | — | — | — | |||||
Acetyl Intermediates | — | — | — | |||||
Other Activities (3) | — | — | — | |||||
Accelerated depreciation and amortization expense | 1 | — | 1 | |||||
Depreciation and amortization expense (2) | 76 | — | 76 | |||||
Total depreciation and amortization expense | 77 | — | 77 |
______________________________
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above. |
(3) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
EX 99.3 - 33
Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Three Months Ended December 31, 2011 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Operating Profit (Loss) | ||||||||
Advanced Engineered Materials | (3 | ) | (1 | ) | (4 | ) | ||
Consumer Specialties | 59 | (1 | ) | 58 | ||||
Industrial Specialties | 17 | — | 17 | |||||
Acetyl Intermediates | 67 | (3 | ) | 64 | ||||
Other Activities (1) | (43 | ) | (297 | ) | (340 | ) | ||
Total | 97 | (302 | ) | (205 | ) | |||
Equity Earnings, Cost - Dividend Income and Other Income (Expense) | ||||||||
Advanced Engineered Materials | 36 | — | 36 | |||||
Consumer Specialties | — | — | — | |||||
Industrial Specialties | 1 | — | 1 | |||||
Acetyl Intermediates | 3 | — | 3 | |||||
Other Activities (1) | 11 | — | 11 | |||||
Total | 51 | — | 51 | |||||
Other Charges and Other Adjustments (2) | ||||||||
Advanced Engineered Materials | 8 | — | 8 | |||||
Consumer Specialties | 5 | — | 5 | |||||
Industrial Specialties | 1 | — | 1 | |||||
Acetyl Intermediates | 4 | — | 4 | |||||
Other Activities (1) | 1 | 306 | 307 | |||||
Total | 19 | 306 | 325 | |||||
Adjusted EBIT | ||||||||
Advanced Engineered Materials | 41 | (1 | ) | 40 | ||||
Consumer Specialties | 64 | (1 | ) | 63 | ||||
Industrial Specialties | 19 | — | 19 | |||||
Acetyl Intermediates | 74 | (3 | ) | 71 | ||||
Other Activities (1) | (31 | ) | 9 | (22 | ) | |||
Total | 167 | 4 | 171 | |||||
Depreciation and Amortization Expense (3) | ||||||||
Advanced Engineered Materials | 32 | — | 32 | |||||
Consumer Specialties | 9 | — | 9 | |||||
Industrial Specialties | 11 | — | 11 | |||||
Acetyl Intermediates | 21 | — | 21 | |||||
Other Activities (1) | 3 | — | 3 | |||||
Total | 76 | — | 76 | |||||
Operating EBITDA | ||||||||
Advanced Engineered Materials | 73 | (1 | ) | 72 | ||||
Consumer Specialties | 73 | (1 | ) | 72 | ||||
Industrial Specialties | 30 | — | 30 | |||||
Acetyl Intermediates | 95 | (3 | ) | 92 | ||||
Other Activities (1) | (28 | ) | 9 | (19 | ) | |||
Total | 243 | 4 | 247 |
______________________________
(1) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
(2) | See Other charges and Other adjustments reconciliation for details. |
(3) | Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above. |
EX 99.3 - 34
Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Three Months Ended December 31, 2011 | |||||||||||||||||
As Previously Reported | Effect of Change | As Adjusted | |||||||||||||||
per share | per share | per share | |||||||||||||||
(In $ millions, except per share data) | |||||||||||||||||
Earnings (loss) from continuing operations | 96 | 0.61 | (190 | ) | (1.21 | ) | (94 | ) | (0.60 | ) | |||||||
Deduct: Income tax (provision) benefit | 2 | 112 | 114 | ||||||||||||||
Earnings (loss) from continuing operations before tax | 94 | (302 | ) | (208 | ) | ||||||||||||
Other charges and other adjustments (1) | 19 | 306 | 325 | ||||||||||||||
Refinancing and related expenses | (2 | ) | — | (2 | ) | ||||||||||||
Adjusted earnings (loss) from continuing operations before tax | 111 | 4 | 115 | ||||||||||||||
Income tax (provision) benefit on adjusted earnings (2) | (19 | ) | (2 | ) | (21 | ) | |||||||||||
Noncontrolling interests | — | — | — | ||||||||||||||
Adjusted earnings (loss) from continuing operations (3) | 92 | 0.58 | 2 | 0.01 | 94 | 0.59 | |||||||||||
Diluted shares (in millions) (4) | |||||||||||||||||
Weighted average shares outstanding | 156.4 | — | 156.4 | ||||||||||||||
Dilutive stock options | 1.8 | — | 1.8 | ||||||||||||||
Dilutive restricted stock units | 0.7 | — | 0.7 | ||||||||||||||
Total diluted shares | 158.9 | — | 158.9 |
______________________________
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | The adjusted effective tax rate for the three months ended December 31, 2011 is 17% As previously reported and 18% As adjusted. |
(3) | The As adjusted amount excludes the immediate recognition of actuarial gains and losses and the impact of actual plan asset returns of 7.6% vs. expected plan asset returns of 8.06%. |
(4) | Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive. |
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net: | Three Months Ended December 31, 2011 | |||
(In $ millions) | ||||
Employee termination benefits | 4 | |||
Kelsterbach plant relocation | 4 | |||
Asset impairments | 1 | |||
Total | 9 | |||
Other Adjustments: (1) | Three Months Ended December 31, 2011 | Income Statement Classification | ||
(In $ millions) | ||||
Business optimization | 1 | SG&A | ||
Kelsterbach plant relocation | 1 | Cost of sales | ||
Plant closures | 3 | Cost of sales / SG&A | ||
Commercial disputes | 1 | SG&A | ||
Actuarial (gain) loss on pension and postretirement plans | 306 | Cost of sales / SG&A / R&D | ||
Other | 4 | Cost of sales | ||
Total | 316 | |||
Total other charges and other adjustments | 325 |
______________________________
(1) | These items are included in net earnings but not included in Other charges (gains), net. |
EX 99.3 - 35
Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Three Months Ended September 30, 2011 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Net earnings (loss) | 167 | 4 | 171 | |||||
(Earnings) loss from discontinued operations | — | — | — | |||||
Interest income | (1 | ) | — | (1 | ) | |||
Interest expense | 54 | — | 54 | |||||
Refinancing expense | — | — | — | |||||
Income tax provision (benefit) | 34 | 1 | 35 | |||||
Other charges (gains), net (1) | 24 | — | 24 | |||||
Other adjustments (1) | 19 | — | 19 | |||||
Adjusted EBIT | 297 | 5 | 302 | |||||
Depreciation and amortization expense (2) | 77 | — | 77 | |||||
Operating EBITDA | 374 | 5 | 379 |
Three Months Ended September 30, 2011 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Advanced Engineered Materials | — | — | — | |||||
Consumer Specialties | — | — | — | |||||
Industrial Specialties | — | — | — | |||||
Acetyl Intermediates | — | — | — | |||||
Other Activities (3) | — | — | — | |||||
Accelerated depreciation and amortization expense | — | — | — | |||||
Depreciation and amortization expense (2) | 77 | — | 77 | |||||
Total depreciation and amortization expense | 77 | — | 77 |
______________________________
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above. |
(3) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
EX 99.3 - 36
Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Three Months Ended September 30, 2011 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Operating Profit (Loss) | ||||||||
Advanced Engineered Materials | 14 | 2 | 16 | |||||
Consumer Specialties | 66 | 1 | 67 | |||||
Industrial Specialties | 30 | 1 | 31 | |||||
Acetyl Intermediates | 128 | 1 | 129 | |||||
Other Activities (1) | (42 | ) | — | (42 | ) | |||
Total | 196 | 5 | 201 | |||||
Equity Earnings, Cost - Dividend Income and Other Income (Expense) | ||||||||
Advanced Engineered Materials | 53 | — | 53 | |||||
Consumer Specialties | — | — | — | |||||
Industrial Specialties | 1 | — | 1 | |||||
Acetyl Intermediates | 3 | — | 3 | |||||
Other Activities (1) | 1 | — | 1 | |||||
Total | 58 | — | 58 | |||||
Other Charges and Other Adjustments (2) | ||||||||
Advanced Engineered Materials | 18 | — | 18 | |||||
Consumer Specialties | 3 | — | 3 | |||||
Industrial Specialties | — | — | — | |||||
Acetyl Intermediates | 12 | — | 12 | |||||
Other Activities (1) | 10 | — | 10 | |||||
Total | 43 | — | 43 | |||||
Adjusted EBIT | ||||||||
Advanced Engineered Materials | 85 | 2 | 87 | |||||
Consumer Specialties | 69 | 1 | 70 | |||||
Industrial Specialties | 31 | 1 | 32 | |||||
Acetyl Intermediates | 143 | 1 | 144 | |||||
Other Activities (1) | (31 | ) | — | (31 | ) | |||
Total | 297 | 5 | 302 | |||||
Depreciation and Amortization Expense (3) | ||||||||
Advanced Engineered Materials | 27 | — | 27 | |||||
Consumer Specialties | 9 | — | 9 | |||||
Industrial Specialties | 12 | — | 12 | |||||
Acetyl Intermediates | 25 | — | 25 | |||||
Other Activities (1) | 4 | — | 4 | |||||
Total | 77 | — | 77 | |||||
Operating EBITDA | ||||||||
Advanced Engineered Materials | 112 | 2 | 114 | |||||
Consumer Specialties | 78 | 1 | 79 | |||||
Industrial Specialties | 43 | 1 | 44 | |||||
Acetyl Intermediates | 168 | 1 | 169 | |||||
Other Activities (1) | (27 | ) | — | (27 | ) | |||
Total | 374 | 5 | 379 |
______________________________
(1) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
(2) | See Other charges and Other adjustments reconciliation for details. |
(3) | Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above. |
EX 99.3 - 37
Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Three Months Ended September 30, 2011 | |||||||||||||||||
As Previously Reported | Effect of Change | As Adjusted | |||||||||||||||
per share | per share | per share | |||||||||||||||
(In $ millions, except per share data) | |||||||||||||||||
Earnings (loss) from continuing operations | 167 | 1.05 | 4 | 0.03 | 171 | 1.08 | |||||||||||
Deduct: Income tax (provision) benefit | (34 | ) | (1 | ) | (35 | ) | |||||||||||
Earnings (loss) from continuing operations before tax | 201 | 5 | 206 | ||||||||||||||
Other charges and other adjustments (1) | 43 | — | 43 | ||||||||||||||
Refinancing and related expenses | (1 | ) | — | (1 | ) | ||||||||||||
Adjusted earnings (loss) from continuing operations before tax | 243 | 5 | 248 | ||||||||||||||
Income tax (provision) benefit on adjusted earnings (2) | (41 | ) | (4 | ) | (45 | ) | |||||||||||
Noncontrolling interests | — | — | — | ||||||||||||||
Adjusted earnings (loss) from continuing operations | 202 | 1.27 | 1 | 0.01 | 203 | 1.28 | |||||||||||
Diluted shares (in millions) (3) | |||||||||||||||||
Weighted average shares outstanding | 156.2 | — | 156.2 | ||||||||||||||
Dilutive stock options | 1.9 | — | 1.9 | ||||||||||||||
Dilutive restricted stock units | 0.9 | — | 0.9 | ||||||||||||||
Total diluted shares | 159.0 | — | 159.0 |
______________________________
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | The adjusted effective tax rate for the three months ended September 30, 2011 is 17% as previously reported and 18% as adjusted. |
(3) | Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive. |
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net: | Three Months Ended September 30, 2011 | |||
(In $ millions) | ||||
Employee termination benefits | 5 | |||
Kelsterbach plant relocation | 14 | |||
Plumbing actions | (2 | ) | ||
Commercial disputes | 7 | |||
Total | 24 | |||
Other Adjustments: (1) | Three Months Ended September 30, 2011 | Income Statement Classification | ||
(In $ millions) | ||||
Business optimization | 2 | SG&A | ||
Kelsterbach plant relocation | 5 | Cost of sales | ||
Plant closures | 2 | Cost of sales / SG&A | ||
(Gain) loss on disposition of assets | (1 | ) | (Gain) loss on disposition | |
Commercial disputes | 7 | Cost of sales | ||
Other | 4 | Cost of sales | ||
Total | 19 | |||
Total other charges and other adjustments | 43 |
______________________________
(1) | These items are included in net earnings but not included in Other charges (gains), net. |
EX 99.3 - 38
Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Three Months Ended June 30, 2011 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Net earnings (loss) | 203 | 3 | 206 | |||||
(Earnings) loss from discontinued operations | 2 | — | 2 | |||||
Interest income | — | — | — | |||||
Interest expense | 57 | — | 57 | |||||
Refinancing expense | 3 | — | 3 | |||||
Income tax provision (benefit) | 75 | 1 | 76 | |||||
Other charges (gains), net (1) | 18 | — | 18 | |||||
Other adjustments (1) | 15 | — | 15 | |||||
Adjusted EBIT | 373 | 4 | 377 | |||||
Depreciation and amortization expense (2) | 68 | — | 68 | |||||
Operating EBITDA | 441 | 4 | 445 |
Three Months Ended June 30, 2011 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Advanced Engineered Materials | 1 | — | 1 | |||||
Consumer Specialties | 3 | — | 3 | |||||
Industrial Specialties | — | — | — | |||||
Acetyl Intermediates | — | — | — | |||||
Other Activities (3) | — | — | — | |||||
Accelerated depreciation and amortization expense | 4 | — | 4 | |||||
Depreciation and amortization expense (2) | 68 | — | 68 | |||||
Total depreciation and amortization expense | 72 | — | 72 |
______________________________
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above. |
(3) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
EX 99.3 - 39
Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Three Months Ended June 30, 2011 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Operating Profit (Loss) | ||||||||
Advanced Engineered Materials | 27 | — | 27 | |||||
Consumer Specialties | 48 | 1 | 49 | |||||
Industrial Specialties | 28 | — | 28 | |||||
Acetyl Intermediates | 152 | 1 | 153 | |||||
Other Activities (1) | (46 | ) | 2 | (44 | ) | |||
Total | 209 | 4 | 213 | |||||
Equity Earnings, Cost - Dividend Income and Other Income (Expense) | ||||||||
Advanced Engineered Materials | 39 | — | 39 | |||||
Consumer Specialties | 79 | — | 79 | |||||
Industrial Specialties | — | — | — | |||||
Acetyl Intermediates | 2 | — | 2 | |||||
Other Activities (1) | 11 | — | 11 | |||||
Total | 131 | — | 131 | |||||
Other Charges and Other Adjustments (2) | ||||||||
Advanced Engineered Materials | 22 | — | 22 | |||||
Consumer Specialties | 10 | — | 10 | |||||
Industrial Specialties | — | — | — | |||||
Acetyl Intermediates | (2 | ) | — | (2 | ) | |||
Other Activities (1) | 3 | — | 3 | |||||
Total | 33 | — | 33 | |||||
Adjusted EBIT | ||||||||
Advanced Engineered Materials | 88 | — | 88 | |||||
Consumer Specialties | 137 | 1 | 138 | |||||
Industrial Specialties | 28 | — | 28 | |||||
Acetyl Intermediates | 152 | 1 | 153 | |||||
Other Activities (1) | (32 | ) | 2 | (30 | ) | |||
Total | 373 | 4 | 377 | |||||
Depreciation and Amortization Expense (3) | ||||||||
Advanced Engineered Materials | 19 | — | 19 | |||||
Consumer Specialties | 10 | — | 10 | |||||
Industrial Specialties | 12 | — | 12 | |||||
Acetyl Intermediates | 25 | — | 25 | |||||
Other Activities (1) | 2 | — | 2 | |||||
Total | 68 | — | 68 | |||||
Operating EBITDA | ||||||||
Advanced Engineered Materials | 107 | — | 107 | |||||
Consumer Specialties | 147 | 1 | 148 | |||||
Industrial Specialties | 40 | — | 40 | |||||
Acetyl Intermediates | 177 | 1 | 178 | |||||
Other Activities (1) | (30 | ) | 2 | (28 | ) | |||
Total | 441 | 4 | 445 |
______________________________
(1) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
(2) | See Other charges and Other adjustments reconciliation for details. |
(3) | Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above. |
EX 99.3 - 40
Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Three Months Ended June 30, 2011 | |||||||||||||||||
As Previously Reported | Effect of Change | As Adjusted | |||||||||||||||
per share | per share | per share | |||||||||||||||
(In $ millions, except per share data) | |||||||||||||||||
Earnings (loss) from continuing operations | 205 | 1.29 | 3 | 0.01 | 208 | 1.30 | |||||||||||
Deduct: Income tax (provision) benefit | (75 | ) | (1 | ) | (76 | ) | |||||||||||
Earnings (loss) from continuing operations before tax | 280 | 4 | 284 | ||||||||||||||
Other charges and other adjustments (1) | 33 | — | 33 | ||||||||||||||
Refinancing and related expenses | 6 | — | 6 | ||||||||||||||
Adjusted earnings (loss) from continuing operations before tax | 319 | 4 | 323 | ||||||||||||||
Income tax (provision) benefit on adjusted earnings (2) | (54 | ) | (4 | ) | (58 | ) | |||||||||||
Noncontrolling interests | — | — | — | ||||||||||||||
Adjusted earnings (loss) from continuing operations | 265 | 1.66 | — | — | 265 | 1.66 | |||||||||||
Diluted shares (in millions) (3) | |||||||||||||||||
Weighted average shares outstanding | 156.3 | — | 156.3 | ||||||||||||||
Dilutive stock options | 2.0 | — | 2.0 | ||||||||||||||
Dilutive restricted stock units | 0.9 | — | 0.9 | ||||||||||||||
Total diluted shares | 159.2 | — | 159.2 |
______________________________
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | The adjusted effective tax rate for the three months ended June 30, 2011 is 17% as previously reported and 18% as adjusted. |
(3) | Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive. |
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net: | Three Months Ended June 30, 2011 | |||
(In $ millions) | ||||
Employee termination benefits | 9 | |||
Kelsterbach plant relocation | 16 | |||
Plumbing actions | (4 | ) | ||
Commercial disputes | (2 | ) | ||
Other | (1 | ) | ||
Total | 18 | |||
Other Adjustments: (1) | Three Months Ended June 30, 2011 | Income Statement Classification | ||
(In $ millions) | ||||
Business optimization | 2 | SG&A | ||
Kelsterbach plant relocation | 5 | Cost of sales | ||
Plant closures | 7 | Cost of sales / SG&A | ||
(Gain) loss on disposition of assets | (1 | ) | (Gain) loss on disposition | |
Write-off of other productive assets | (1 | ) | Cost of sales | |
Other | 3 | Cost of sales | ||
Total | 15 | |||
Total other charges and other adjustments | 33 |
______________________________
(1) | These items are included in net earnings but not included in Other charges (gains), net. |
EX 99.3 - 41
Reconciliation of Consolidated Net Earnings (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Three Months Ended March 31, 2011 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Net earnings (loss) | 142 | 3 | 145 | |||||
(Earnings) loss from discontinued operations | (4 | ) | — | (4 | ) | |||
Interest income | (1 | ) | — | (1 | ) | |||
Interest expense | 55 | — | 55 | |||||
Refinancing expense | — | — | — | |||||
Income tax provision (benefit) | 42 | 2 | 44 | |||||
Other charges (gains), net (1) | (3 | ) | — | (3 | ) | |||
Other adjustments (1) | 7 | — | 7 | |||||
Adjusted EBIT | 238 | 5 | 243 | |||||
Depreciation and amortization expense (2) | 66 | — | 66 | |||||
Operating EBITDA | 304 | 5 | 309 |
Three Months Ended March 31, 2011 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Advanced Engineered Materials | 2 | — | 2 | |||||
Consumer Specialties | 4 | — | 4 | |||||
Industrial Specialties | — | — | — | |||||
Acetyl Intermediates | — | — | — | |||||
Other Activities (3) | — | — | — | |||||
Accelerated depreciation and amortization expense | 6 | — | 6 | |||||
Depreciation and amortization expense (2) | 66 | — | 66 | |||||
Total depreciation and amortization expense | 72 | — | 72 |
______________________________
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Other adjustments above. |
(3) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
EX 99.3 - 42
Segment Data and Reconciliation of Operating Profit (Loss) to Adjusted EBIT and Operating EBITDA - Non-U.S. GAAP Measures - Unaudited
Three Months Ended March 31, 2011 | ||||||||
As Previously Reported | Effect of Change | As Adjusted | ||||||
(In $ millions) | ||||||||
Operating Profit (Loss) | ||||||||
Advanced Engineered Materials | 38 | 2 | 40 | |||||
Consumer Specialties | 54 | 1 | 55 | |||||
Industrial Specialties | 25 | 1 | 26 | |||||
Acetyl Intermediates | 112 | — | 112 | |||||
Other Activities (1) | (41 | ) | 1 | (40 | ) | |||
Total | 188 | 5 | 193 | |||||
Equity Earnings, Cost - Dividend Income and Other Income (Expense) | ||||||||
Advanced Engineered Materials | 35 | — | 35 | |||||
Consumer Specialties | 1 | — | 1 | |||||
Industrial Specialties | — | — | — | |||||
Acetyl Intermediates | 2 | — | 2 | |||||
Other Activities (1) | 8 | — | 8 | |||||
Total | 46 | — | 46 | |||||
Other Charges and Other Adjustments (2) | ||||||||
Advanced Engineered Materials | 12 | — | 12 | |||||
Consumer Specialties | 5 | — | 5 | |||||
Industrial Specialties | — | — | — | |||||
Acetyl Intermediates | (17 | ) | — | (17 | ) | |||
Other Activities (1) | 4 | — | 4 | |||||
Total | 4 | — | 4 | |||||
Adjusted EBIT | ||||||||
Advanced Engineered Materials | 85 | 2 | 87 | |||||
Consumer Specialties | 60 | 1 | 61 | |||||
Industrial Specialties | 25 | 1 | 26 | |||||
Acetyl Intermediates | 97 | — | 97 | |||||
Other Activities (1) | (29 | ) | 1 | (28 | ) | |||
Total | 238 | 5 | 243 | |||||
Depreciation and Amortization Expense (3) | ||||||||
Advanced Engineered Materials | 19 | — | 19 | |||||
Consumer Specialties | 8 | — | 8 | |||||
Industrial Specialties | 10 | — | 10 | |||||
Acetyl Intermediates | 25 | — | 25 | |||||
Other Activities (1) | 4 | — | 4 | |||||
Total | 66 | — | 66 | |||||
Operating EBITDA | ||||||||
Advanced Engineered Materials | 104 | 2 | 106 | |||||
Consumer Specialties | 68 | 1 | 69 | |||||
Industrial Specialties | 35 | 1 | 36 | |||||
Acetyl Intermediates | 122 | — | 122 | |||||
Other Activities (1) | (25 | ) | 1 | (24 | ) | |||
Total | 304 | 5 | 309 |
______________________________
(1) | Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies. |
(2) | See Other charges and Other adjustments reconciliation for details. |
(3) | Excludes accelerated depreciation and amortization expense included in Other charges and Other adjustments above. |
EX 99.3 - 43
Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Three Months Ended March 31, 2011 | |||||||||||||||||
As Previously Reported | Effect of Change | As Adjusted | |||||||||||||||
per share | per share | per share | |||||||||||||||
(In $ millions, except per share data) | |||||||||||||||||
Earnings (loss) from continuing operations | 138 | 0.87 | 3 | 0.01 | 141 | 0.88 | |||||||||||
Deduct: Income tax (provision) benefit | (42 | ) | (2 | ) | (44 | ) | |||||||||||
Earnings (loss) from continuing operations before tax | 180 | 5 | 185 | ||||||||||||||
Other charges and other adjustments (1) | 4 | — | 4 | ||||||||||||||
Refinancing and related expenses | — | — | — | ||||||||||||||
Adjusted earnings (loss) from continuing operations before tax | 184 | 5 | 189 | ||||||||||||||
Income tax (provision) benefit on adjusted earnings (2) | (31 | ) | (3 | ) | (34 | ) | |||||||||||
Noncontrolling interests | — | — | — | ||||||||||||||
Adjusted earnings (loss) from continuing operations | 153 | 0.96 | 2 | 0.02 | 155 | 0.98 | |||||||||||
Diluted shares (in millions) (3) | |||||||||||||||||
Weighted average shares outstanding | 156.0 | — | 156.0 | ||||||||||||||
Dilutive stock options | 2.0 | — | 2.0 | ||||||||||||||
Dilutive restricted stock units | 0.7 | — | 0.7 | ||||||||||||||
Total diluted shares | 158.7 | — | 158.7 |
______________________________
(1) | See Other charges and Other adjustments reconciliation for details. |
(2) | The adjusted effective tax rate for the three months ended March 31, 2011 is 17% as previously reported and 18% as adjusted. |
(3) | Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive. |
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), Net: | Three Months Ended March 31, 2011 | |||
(In $ millions) | ||||
Employee termination benefits | 4 | |||
Kelsterbach plant relocation | 13 | |||
Commercial disputes | (20 | ) | ||
Total | (3 | ) | ||
Other Adjustments: (1) | Three Months Ended March 31, 2011 | Income Statement Classification | ||
(In $ millions) | ||||
Business optimization | 3 | SG&A | ||
Kelsterbach plant relocation | (3 | ) | Cost of sales | |
Plant closures | 6 | Cost of sales / SG&A | ||
(Gain) loss on disposition of assets | 1 | (Gain) loss on disposition | ||
Total | 7 | |||
Total other charges and other adjustments | 4 |
______________________________
(1) | These items are included in net earnings but not included in Other charges (gains), net. |
EX 99.3 - 44