Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 01, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | CELANESE CORPORATION | ||
Entity Central Index Key | 1,306,830 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 147,083,779 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 8,461,210,679 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net sales | $ 5,674 | $ 6,802 | $ 6,510 |
Cost of sales | (4,356) | (5,186) | (5,145) |
Gross profit | 1,318 | 1,616 | 1,365 |
Selling, general and administrative expenses | (506) | (758) | (311) |
Amortization of intangible assets | (11) | (20) | (32) |
Research and development expenses | (119) | (86) | (85) |
Other (charges) gains, net | (351) | 15 | (158) |
Foreign exchange gain (loss), net | 4 | (2) | (6) |
Gain (loss) on disposition of businesses and assets, net | (9) | (7) | 735 |
Operating profit (loss) | 326 | 758 | 1,508 |
Equity in net earnings (loss) of affiliates | 181 | 246 | 180 |
Interest expense | (119) | (147) | (172) |
Refinancing expense | 0 | (29) | (1) |
Interest income | 1 | 1 | 1 |
Dividend income - cost investments | 107 | 116 | 93 |
Other income (expense), net | (8) | (4) | 0 |
Earnings (loss) from continuing operations before tax | 488 | 941 | 1,609 |
Income tax (provision) benefit | (201) | (314) | (508) |
Earnings (loss) from continuing operations | 287 | 627 | 1,101 |
Earnings (loss) from operation of discontinued operations | (3) | (11) | 0 |
Gain (loss) on disposition of discontinued operations | 0 | 0 | 0 |
Income tax (provision) benefit from discontinued operations | 1 | 4 | 0 |
Earnings (loss) from discontinued operations | (2) | (7) | 0 |
Net earnings (loss) | 285 | 620 | 1,101 |
Net (earnings) loss attributable to noncontrolling interests | 19 | 4 | 0 |
Net earnings (loss) attributable to Celanese Corporation | 304 | 624 | 1,101 |
Amounts attributable to Celanese Corporation | |||
Earnings (loss) from continuing operations | 306 | 631 | 1,101 |
Earnings (loss) from discontinued operations | (2) | (7) | 0 |
Net earnings (loss) | $ 304 | $ 624 | $ 1,101 |
Earnings (loss) per common share - basic | |||
Continuing operations | $ 2.03 | $ 4.07 | $ 6.93 |
Discontinued operations | (0.01) | (0.04) | 0 |
Net earnings (loss) - basic | 2.02 | 4.03 | 6.93 |
Earnings (loss) per common share - diluted | |||
Continuing operations | 2.01 | 4.04 | 6.91 |
Discontinued operations | (0.01) | (0.04) | 0 |
Net earnings (loss) - diluted | $ 2 | $ 4 | $ 6.91 |
Weighted average shares - basic | 150,838,050 | 155,012,370 | 158,801,150 |
Weighted average shares - diluted | 152,287,955 | 156,166,993 | 159,334,219 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net earnings (loss) | $ 285 | $ 620 | $ 1,101 |
Other comprehensive income (loss), net of tax | |||
Unrealized gain (loss) on marketable securities | 0 | 1 | 1 |
Foreign currency translation | (188) | (148) | 20 |
Gain (loss) on cash flow hedges | 2 | 40 | 6 |
Pension and postretirement benefits | 3 | (54) | 58 |
Total other comprehensive income (loss), net of tax | (183) | (161) | 85 |
Total comprehensive income (loss), net of tax | 102 | 459 | 1,186 |
Comprehensive (income) loss attributable to noncontrolling interests | 19 | 4 | 0 |
Comprehensive income (loss) attributable to Celanese Corporation | $ 121 | $ 463 | $ 1,186 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Current Assets | |||
Cash and cash equivalents (variable interest entity restricted - 2015: $7; 2014: $1) | $ 967 | $ 780 | |
Trade receivables - third party and affiliates (net of allowance for doubtful accounts - 2015: $6; 2014: $9; variable interest entity restricted - 2015: $6; 2014 - $0) | 706 | 801 | |
Non-trade receivables, net | 285 | 241 | |
Inventories | 682 | 782 | |
Deferred income taxes | 68 | 29 | |
Marketable securities, at fair value | 30 | 32 | |
Other assets | 49 | 33 | |
Total current assets | 2,787 | 2,698 | |
Investments in affiliates | 838 | 876 | |
Property, plant and equipment (net of accumulated depreciation - 2015: $2,039; 2014: $1,816; variable interest entity restricted - 2015: $772; 2014: $530) | 3,609 | 3,733 | |
Deferred income taxes | 222 | 253 | |
Other assets (variable interest entity restricted - 2015: $13; 2014: $29) | 300 | 355 | |
Goodwill | 705 | [1] | 749 |
Intangible assets, net (variable interest entity restricted - 2015: $27; 2014: $0) | 125 | 132 | |
Total assets | 8,586 | 8,796 | |
Current Liabilities | |||
Short-term borrowings and current installments of long-term debt - third party and affiliates | 513 | 137 | |
Trade payables - third party and affiliates | 587 | 757 | |
Other liabilities | 330 | 432 | |
Deferred income taxes | 30 | 7 | |
Income taxes payable | 90 | 5 | |
Total current liabilities | 1,550 | 1,338 | |
Long-term debt, net of unamortized deferred financing costs | 2,468 | 2,586 | |
Deferred income taxes | 136 | 141 | |
Uncertain tax positions | 167 | 159 | |
Benefit obligations | 1,189 | 1,211 | |
Other liabilities | $ 247 | $ 283 | |
Commitments and Contingencies | |||
Stockholders' Equity | |||
Preferred stock, $0.01 par value, 100,000,000 shares authorized (2015 and 2014: 0 issued and outstanding) | $ 0 | $ 0 | |
Treasury stock, at cost (2015: 19,916,490 shares; 2014: 13,266,625 shares) | (1,031) | (611) | |
Additional paid-in capital | 136 | 103 | |
Retained earnings | 3,621 | 3,491 | |
Accumulated other comprehensive income (loss), net | (348) | (165) | |
Total Celanese Corporation stockholders' equity | 2,378 | 2,818 | |
Noncontrolling interests | 451 | 260 | |
Total equity | 2,829 | 3,078 | |
Total liabilities and equity | 8,586 | 8,796 | |
Series A common stock, $0.0001 par value, 400,000,000 shares authorized (2015: 166,698,787 issued and 146,782,297 outstanding; 2014: 166,169,335 issued and 152,902,710 outstanding) | |||
Stockholders' Equity | |||
Common stock | 0 | 0 | |
Series B common stock, $0.0001 par value, 100,000,000 shares authorized (2015 and 2014: 0 issued and outstanding) | |||
Stockholders' Equity | |||
Common stock | $ 0 | $ 0 | |
[1] | There were $0 million of accumulated impairment losses as of December 31, 2015. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets | ||
Allowance for doubtful accounts - trade receivables | $ 6 | $ 9 |
Accumulated depreciation | 2,039 | 1,816 |
Cash and cash equivalents (variable interest entity restricted - 2015: $7; 2014: $1) | 967 | 780 |
Trade receivables - third party and affiliates | 706 | 801 |
Property, plant and equipment (net of accumulated depreciation - 2015: $2,039; 2014: $1,816; variable interest entity restricted - 2015: $772; 2014: $530) | 3,609 | 3,733 |
Other assets (variable interest entity restricted - 2015: $13; 2014: $29) | 300 | 355 |
Intangible assets, net (variable interest entity restricted - 2015: $27; 2014: $0) | $ 125 | $ 132 |
Stockholders' Equity | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock, shares | 19,916,490 | 13,266,625 |
Common stock, par value | $ 0.0001 | |
Series A common stock, $0.0001 par value, 400,000,000 shares authorized (2015: 166,698,787 issued and 146,782,297 outstanding; 2014: 166,169,335 issued and 152,902,710 outstanding) | ||
Stockholders' Equity | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 166,698,787 | 166,169,335 |
Common stock, shares outstanding | 146,782,297 | 152,902,710 |
Series B common stock, $0.0001 par value, 100,000,000 shares authorized (2015 and 2014: 0 issued and outstanding) | ||
Stockholders' Equity | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 0 | 0 |
Common stock, shares outstanding | 0 | 0 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Current Assets | ||
Cash and cash equivalents (variable interest entity restricted - 2015: $7; 2014: $1) | $ 7 | $ 1 |
Trade receivables - third party and affiliates | 6 | 0 |
Property, plant and equipment (net of accumulated depreciation - 2015: $2,039; 2014: $1,816; variable interest entity restricted - 2015: $772; 2014: $530) | 772 | 530 |
Other assets (variable interest entity restricted - 2015: $13; 2014: $29) | 13 | 29 |
Intangible assets, net (variable interest entity restricted - 2015: $27; 2014: $0) | $ 27 | $ 0 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Series A Common Stock [Member] | Treasury Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss), Net [Member] | Noncontrolling Interests [Member] | |
Balance as of the beginning of the period, shares at Dec. 31, 2012 | 159,642,401 | 23,986,836 | ||||||
Balance as of the beginning of the period at Dec. 31, 2012 | $ 0 | |||||||
Balance as of the beginning of the year at Dec. 31, 2012 | $ 0 | $ (905) | $ 731 | $ 1,993 | $ (89) | |||
Stock option exercises, net of tax | $ 6 | $ 0 | 11 | |||||
Stock option exercises, shares | 283,682 | |||||||
Purchases of treasury stock, shares | (3,192,201) | |||||||
Purchases of treasury stock | $ 0 | |||||||
Stock awards, shares | 205,946 | |||||||
Stock awards | $ 0 | |||||||
Purchases of treasury stock, shares | 3,186,180 | [1] | 3,192,201 | |||||
Purchases of treasury stock, including related fees | $ (164) | $ (164) | ||||||
Retirement of treasury stock, shares | (18,250,900) | |||||||
Retirement of treasury stock | $ (708) | (708) | ||||||
Stock-based compensation, net of tax | 19 | |||||||
Net earnings (loss) attributable to Celanese Corporation | 1,101 | 1,101 | ||||||
Series A common stock dividends | (83) | |||||||
Other comprehensive income (loss), net of tax | 85 | 85 | ||||||
Balance as of the end of the year at Dec. 31, 2013 | 2,699 | $ 0 | $ (361) | 53 | 3,011 | (4) | ||
Balance as of the end of the period, shares at Dec. 31, 2013 | 156,939,828 | 8,928,137 | ||||||
Net earnings (loss) attributable to noncontrolling interests | 0 | 0 | ||||||
Contributions from noncontrolling interests | 0 | |||||||
Balance as of the end of the period at Dec. 31, 2013 | 0 | |||||||
Total equity at Dec. 31, 2013 | 2,699 | |||||||
Stock option exercises, net of tax | $ 7 | $ 0 | 7 | |||||
Stock option exercises, shares | 202,121 | |||||||
Purchases of treasury stock, shares | (4,338,488) | |||||||
Purchases of treasury stock | $ 0 | |||||||
Stock awards, shares | 99,249 | |||||||
Stock awards | $ 0 | |||||||
Purchases of treasury stock, shares | 4,338,488 | [1] | 4,338,488 | |||||
Purchases of treasury stock, including related fees | $ (250) | $ (250) | ||||||
Retirement of treasury stock, shares | 0 | |||||||
Retirement of treasury stock | $ 0 | 0 | ||||||
Stock-based compensation, net of tax | 43 | |||||||
Net earnings (loss) attributable to Celanese Corporation | 624 | 624 | ||||||
Series A common stock dividends | (144) | |||||||
Other comprehensive income (loss), net of tax | (161) | (161) | ||||||
Balance as of the end of the year at Dec. 31, 2014 | 2,818 | $ 0 | $ (611) | 103 | 3,491 | (165) | ||
Balance as of the end of the period, shares at Dec. 31, 2014 | 152,902,710 | 13,266,625 | ||||||
Net earnings (loss) attributable to noncontrolling interests | (4) | (4) | ||||||
Contributions from noncontrolling interests | 264 | |||||||
Balance as of the end of the period at Dec. 31, 2014 | 260 | 260 | ||||||
Total equity at Dec. 31, 2014 | 3,078 | |||||||
Stock option exercises, net of tax | $ 4 | $ 0 | 5 | |||||
Stock option exercises, shares | 94,000 | 94,147 | ||||||
Purchases of treasury stock, shares | (6,649,865) | |||||||
Purchases of treasury stock | $ 0 | |||||||
Stock awards, shares | 435,305 | |||||||
Stock awards | $ 0 | |||||||
Purchases of treasury stock, shares | 6,640,601 | [1] | 6,649,865 | |||||
Purchases of treasury stock, including related fees | $ (420) | $ (420) | ||||||
Retirement of treasury stock, shares | 0 | |||||||
Retirement of treasury stock | $ 0 | 0 | ||||||
Stock-based compensation, net of tax | 28 | |||||||
Net earnings (loss) attributable to Celanese Corporation | 304 | 304 | ||||||
Series A common stock dividends | (174) | |||||||
Other comprehensive income (loss), net of tax | (183) | (183) | ||||||
Balance as of the end of the year at Dec. 31, 2015 | 2,378 | $ 0 | $ (1,031) | $ 136 | $ 3,621 | $ (348) | ||
Balance as of the end of the period, shares at Dec. 31, 2015 | 146,782,297 | 19,916,490 | ||||||
Net earnings (loss) attributable to noncontrolling interests | (19) | (19) | ||||||
Contributions from noncontrolling interests | 210 | |||||||
Balance as of the end of the period at Dec. 31, 2015 | 451 | $ 451 | ||||||
Total equity at Dec. 31, 2015 | $ 2,829 | |||||||
[1] | The years ended December 31, 2015 and 2013 exclude 9,264 and 6,021 shares, respectively, withheld from an executive officer to cover statutory minimum withholding requirements for personal income taxes related to the vesting of restricted stock. Restricted stock awards are considered outstanding at the time of issuance. Accordingly, the shares withheld are treated as treasury shares. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities | |||
Net earnings (loss) | $ 285 | $ 620 | $ 1,101 |
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities | |||
Asset impairments | 126 | 0 | 81 |
Depreciation, amortization and accretion | 363 | 298 | 319 |
Pension and postretirement net periodic benefit cost | (52) | (113) | (35) |
Pension and postretirement contributions | (63) | (223) | (96) |
Actuarial (gain) loss on pension and postretirement plans | 127 | 350 | (104) |
Pension curtailments and settlements, net | (3) | (78) | (52) |
Deferred income taxes, net | 42 | 124 | 344 |
(Gain) loss on disposition of businesses and assets, net | 8 | 8 | (737) |
Stock-based compensation | 40 | 46 | 24 |
Undistributed earnings in unconsolidated affiliates | (5) | (98) | (39) |
Other, net | 7 | 24 | 13 |
Operating cash provided by (used in) discontinued operations | (2) | (5) | (4) |
Changes in operating assets and liabilities | |||
Trade receivables - third party and affiliates, net | 61 | 23 | (23) |
Inventories | 62 | (15) | (81) |
Other assets | (17) | 20 | (110) |
Trade payables - third party and affiliates | (111) | (13) | 109 |
Other liabilities | (6) | (6) | 52 |
Net cash provided by (used in) operating activities | 862 | 962 | 762 |
Investing Activities | |||
Capital expenditures on property, plant and equipment | (232) | (254) | (277) |
Acquisitions, net of cash acquired | (6) | (10) | 0 |
Proceeds from sale of businesses and assets, net | 4 | 0 | 13 |
Capital expenditures related to Kelsterbach plant relocation | 0 | 0 | (7) |
Capital expenditures related to Fairway Methanol LLC | (288) | (424) | (93) |
Other, net | (36) | (17) | (58) |
Net cash provided by (used in) investing activities | (558) | (705) | (422) |
Financing Activities | |||
Net change in short-term borrowings with maturities of 3 months or less | 350 | (9) | (11) |
Proceeds from short-term borrowings | 80 | 62 | 177 |
Repayments of short-term borrowings | (83) | (91) | (123) |
Proceeds from long-term debt | 0 | 387 | 74 |
Repayments of long-term debt | (24) | (626) | (198) |
Purchases of treasury stock, including related fees | (420) | (250) | (164) |
Stock option exercises | 3 | 5 | 9 |
Series A common stock dividends | (174) | (144) | (83) |
Contributions from noncontrolling interests | 214 | 264 | 0 |
Other, net | (12) | (13) | (7) |
Net cash provided by (used in) financing activities | (66) | (415) | (326) |
Exchange rate effects on cash and cash equivalents | (51) | (46) | 11 |
Net increase (decrease) in cash and cash equivalents | 187 | (204) | 25 |
Cash and cash equivalents as of beginning of period | 780 | 984 | 959 |
Cash and cash equivalents as of end of period | $ 967 | $ 780 | $ 984 |
Description of the Company and
Description of the Company and Basis of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Company and Basis of Presentation | Description of the Company and Basis of Presentation Description of the Company Celanese Corporation and its subsidiaries (collectively, the "Company") is a global technology and specialty materials company. The Company's business involves processing chemical raw materials, such as methanol, carbon monoxide and ethylene, and natural products, including wood pulp, into value-added chemicals, thermoplastic polymers and other chemical-based products. Definitions In this Annual Report on Form 10-K ("Annual Report"), the term "Celanese" refers to Celanese Corporation, a Delaware corporation, and not its subsidiaries. The term "Celanese US" refers to the Company's subsidiary, Celanese US Holdings LLC, a Delaware limited liability company, and not its subsidiaries. Basis of Presentation The consolidated financial statements contained in this Annual Report were prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") for all periods presented and include the accounts of the Company, its majority owned subsidiaries over which the Company exercises control and, when applicable, variable interest entities in which the Company is the primary beneficiary. The consolidated financial statements and other financial information included in this Annual Report, unless otherwise specified, have been presented to separately show the effects of discontinued operations. In the ordinary course of business, the Company enters into contracts and agreements relative to a number of topics, including acquisitions, dispositions, joint ventures, supply agreements, product sales and other arrangements. The Company endeavors to describe those contracts or agreements that are material to its business, results of operations or financial position. The Company may also describe some arrangements that are not material but in which the Company believes investors may have an interest or which may have been included in a Form 8-K filing. Investors should not assume the Company has described all contracts and agreements relative to the Company's business in this Annual Report. For those consolidated ventures in which the Company owns or is exposed to less than 100% of the economics, the outside stockholders' interests are shown as noncontrolling interests. The Company has reclassified certain prior period amounts to conform to the current period's presentation. |
Summary of Accounting Policies
Summary of Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Accounting Policies | Summary of Accounting Policies Consolidation Principles The consolidated financial statements have been prepared in accordance with US GAAP for all periods presented and include the accounts of the Company and its majority owned subsidiaries over which the Company exercises control. All intercompany accounts and transactions have been eliminated in consolidation. Estimates and Assumptions The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of net sales, expenses and allocated charges during the reporting period. Significant estimates pertain to impairments of goodwill, intangible assets and other long-lived assets, purchase price allocations, restructuring costs and other (charges) gains, net, income taxes, pension and other postretirement benefits, asset retirement obligations, environmental liabilities and loss contingencies, among others. Actual results could differ from those estimates. Fair Value Measurements The Company determines fair value based on the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers assumptions that market participants would use when pricing the asset or liability. Market participant assumptions are categorized by a three-tiered fair value hierarchy which prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. If a financial instrument uses inputs that fall in different levels of the hierarchy, the instrument will be categorized based upon the lowest level of input that is significant to the fair value calculation. Valuations for fund investments, such as common/collective trusts, registered investment companies and short-term investment funds, which do not have readily determinable fair values, are typically estimated using a net asset value provided by a third party as a practical expedient. The levels of inputs used to measure fair value are as follows: Level 1 - unadjusted quoted prices for identical assets or liabilities in active markets accessible by the Company Level 2 - inputs that are observable in the marketplace other than those inputs classified as Level 1 Level 3 - inputs that are unobservable in the marketplace and significant to the valuation Purchase Accounting The Company allocates the purchase price of its acquisitions to identifiable intangible assets acquired based on their estimated fair values. The excess of purchase price over the aggregate fair values are recorded as goodwill. Intangible assets are valued using the relief from royalty and discounted cash flow methodologies, which are considered Level 3 measurements. The relief from royalty method estimates the Company's theoretical royalty savings from ownership of the intangible asset. Key assumptions used in this model include discount rates, royalty rates, growth rates, sales projections and terminal value rates, all of which require significant management judgment and, therefore, are susceptible to change. The key assumptions used in the discounted cash flow valuation model include discount rates, growth rates, cash flow projections and terminal value rates. Discount rates, growth rates and cash flow projections are the most sensitive and susceptible to change as they require significant management judgment. The Company calculates the fair value of the intangible assets acquired to allocate the purchase price at the acquisition date. The Company may use the assistance of third-party valuation consultants. Cash and Cash Equivalents All highly liquid investments with original maturities of three months or less are considered cash equivalents. Allowance for Doubtful Accounts The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company believes, based on historical results, the likelihood of actual write-offs having a material impact on financial results is low. The allowance for doubtful accounts is estimated using factors such as customer credit ratings, past collection history and general risk profile. Receivables are charged against the allowance for doubtful accounts when it is probable that the receivable will not be recovered. Inventories Inventories, including stores and supplies, are stated at the lower of cost or market. Cost for inventories is determined using the first-in, first-out ("FIFO") method. Cost includes raw materials, direct labor and manufacturing overhead. Cost for stores and supplies is primarily determined by the average cost method. Investments • Marketable Securities The cost of available-for-sale securities sold is determined using the specific identification method. • Investments in Affiliates Investments where the Company can exercise significant influence over operating and financial policies of an investee, which is generally considered when an investor owns 20% or more of the voting stock of an investee, are accounted for under the equity method of accounting. Investments where the Company does not exercise significant influence are accounted for under the cost method of accounting. The Company determined it cannot exercise significant influence over certain investments where the Company owns greater than a 20% interest due to local government investment in and influence over these entities, limitations on the Company's involvement in the day-to-day operations and the present inability of the entities to provide timely financial information prepared in accordance with US GAAP. Accordingly, these investments are accounted for under the cost method of accounting. In certain instances, the financial information of the Company's equity investees is not available on a timely basis. Accordingly, the Company records its proportional share of the investee's earnings or losses on a consistent lag of no more than one quarter . When required to assess the recoverability of its investments in affiliates, the Company estimates fair value using a discounted cash flow model. The Company may engage third-party valuation consultants to assist with this process. Property, Plant and Equipment, Net Land is recorded at historical cost. Buildings, machinery and equipment, including capitalized interest, and property under capital lease agreements, are recorded at cost less accumulated depreciation. The Company records depreciation and amortization in its consolidated statements of operations as either Cost of sales, Selling, general and administrative expenses or Research and development expenses consistent with the utilization of the underlying assets. Depreciation is calculated on a straight-line basis over the following estimated useful lives of depreciable assets: Land improvements 20 years Buildings and improvements 30 years Machinery and equipment 20 years Leasehold improvements are amortized over 10 years or the remaining life of the respective lease, whichever is shorter. Accelerated depreciation is recorded when the estimated useful life is shortened. Ordinary repair and maintenance costs, including costs for planned maintenance turnarounds, that do not extend the useful life of the asset are charged to earnings as incurred. Fully depreciated assets are retained in property and depreciation accounts until sold or otherwise disposed. In the case of disposals, assets and related depreciation are removed from the accounts, and the net amounts, less proceeds from disposal, are included in earnings. The Company assesses the recoverability of the carrying amount of its property, plant and equipment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. An impairment loss would be assessed when estimated undiscounted future cash flows from the operation and disposition of the asset group are less than the carrying amount of the asset group. Asset groups have identifiable cash flows and are largely independent of other asset groups. Measurement of an impairment loss is based on the excess of the carrying amount of the asset group over its fair value. The Company calculates the fair value using a discounted cash flow model incorporating discount rates commensurate with the risks involved for the asset group, which is classified as a Level 3 fair value measurement. The key assumptions used in the discounted cash flow valuation model include discount rates, growth rates, cash flow projections and terminal value rates. Discount rates, growth rates and cash flow projections involve significant judgment and are based on management's estimate of current and forecasted market conditions and cost structure. Impairment losses are generally recorded to Other (charges) gains, net in the consolidated statements of operations. Goodwill and Intangible Assets, Net The Company assesses the recoverability of the carrying amount of its reporting unit goodwill and indefinite-lived intangible assets either qualitatively or quantitatively annually during the third quarter of its fiscal year using June 30 balances or whenever events or changes in circumstances indicate that the carrying amount of the asset may not be fully recoverable. The Company assesses the recoverability of finite-lived intangible assets in the same manner as for property, plant and equipment. Impairment losses are generally recorded to Other (charges) gains, net in the consolidated statements of operations. • Goodwill Recoverability of the carrying amount of goodwill is measured at the reporting unit level. In performing a quantitative analysis, the Company measures the recoverability of goodwill for each reporting unit using a discounted cash flow model incorporating discount rates commensurate with the risks involved, which is classified as a Level 3 fair value measurement. The key assumptions used in the discounted cash flow valuation model include discount rates, growth rates, tax rates, cash flow projections and terminal value rates. Discount rates, growth rates and cash flow projections are the most sensitive and susceptible to change as they require significant management judgment. Discount rates used are similar to the rates estimated by the weighted average cost of capital ("WACC") considering any differences in company-specific risk factors. The Company may engage third-party valuation consultants to assist with this process. • Indefinite-lived Intangible Assets Management tests indefinite-lived intangible assets for impairment quantitatively utilizing the relief from royalty method under the income approach to determine the estimated fair value for each indefinite-lived intangible asset, which is classified as a Level 3 fair value measurement. The relief from royalty method estimates the Company's theoretical royalty savings from ownership of the intangible asset. The key assumptions used in this model include discount rates, royalty rates, growth rates, tax rates, sales projections and terminal value rates. Discount rates, royalty rates, growth rates and sales projections are the assumptions most sensitive and susceptible to change as they require significant management judgment. Discount rates used are similar to the rates estimated by the WACC considering any differences in company-specific risk factors. Royalty rates are established by management and are periodically substantiated by third-party valuation consultants. • Definite-lived Intangible Assets Customer-related intangible assets and other intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives, which range from four to 20 years . Derivative and Hedging Instruments The Company manages its exposures to interest rates, foreign exchange rates and commodity prices through a risk management program that includes the use of derivative financial instruments. The Company does not use derivative financial instruments for speculative trading purposes. The fair value of all derivative instruments is recorded as an asset or liability on a net basis at the balance sheet date. • Interest Rate Risk Management To reduce the interest rate risk inherent in the Company's variable rate debt, the Company utilizes interest rate swap agreements to convert a portion of its variable rate borrowings into a fixed rate obligation. These interest rate swap agreements fix the London Interbank Offered Rate ("LIBOR") portion of the Company's US dollar denominated variable rate borrowings. Prior to December 2014, all or a portion of these interest rate swap agreements were designated as cash flow hedges. Accordingly, to the extent the cash flow hedge was effective, changes in the fair value of interest rate swaps were included in gain (loss) from cash flow hedges within Accumulated other comprehensive income (loss), net in the consolidated balance sheets. Hedge accounting is discontinued when the interest rate swap is no longer effective in offsetting cash flows attributable to the hedged risk, the interest rate swap expires or the cash flow hedge is dedesignated because it is no longer probable that the forecasted transaction will occur according to the original strategy. In December 2014, the Company dedesignated as cash flow hedges a notional value of $500 million US dollar interest rate swap agreements expiring January 2, 2016 . When a cash flow hedge is dedesignated and it is probable that the forecasted transaction will not occur, any related amounts previously included in Accumulated other comprehensive income (loss), net would be reclassified to earnings immediately. Mark-to-market adjustments on dedesignated interest rate swap agreements are included in Interest expense in the consolidated statements of operations through their expiration. • Foreign Exchange Risk Management Certain subsidiaries of the Company have assets and liabilities denominated in currencies other than their respective functional currencies, which creates foreign exchange risk. The Company also is exposed to foreign currency fluctuations on transactions with third-party entities as well as intercompany transactions. The Company minimizes its exposure to foreign currency fluctuations by entering into foreign currency forwards and swaps. These foreign currency forwards and swaps are not designated as hedges. Gains and losses on foreign currency forwards and swaps entered into to offset foreign exchange impacts on intercompany balances are included in Other income (expense), net in the consolidated statements of operations. Gains and losses on foreign currency forwards and swaps entered into to offset foreign exchange impacts on all other assets and liabilities are included in Foreign exchange gain (loss), net in the consolidated statements of operations. The Company uses non-derivative financial instruments that may give rise to foreign currency transaction gains or losses to hedge the foreign currency exposure of net investments in foreign operations. Accordingly, the effective portion of gains and losses from remeasurement of the non-derivative financial instrument is included in foreign currency translation within Accumulated other comprehensive income (loss), net in the consolidated balance sheets. Gains and losses are reclassified to earnings in the period the hedged investment is sold or liquidated. Prior to March 2015, the Company used cross-currency swap contracts to hedge its exposure to foreign currency exchange rate risk associated with certain intercompany loans. Under the terms of the contracts, the Company would have exchanged Euro fixed interest for US dollar fixed interest and at maturity would have exchanged Euro notional values for US dollar notional values. The terms of the contracts corresponded to the related hedged intercompany loans. The cross-currency swap contracts were designated as cash flow hedges. Accordingly, the effective portion of the unrealized gains and losses on the contracts was included in gain (loss) from cash flow hedges within Accumulated other comprehensive income (loss), net in the consolidated balance sheets. Gains and losses were reclassified to Interest expense in the consolidated statements of operations over the period that the hedged loans affected earnings. The Euro notional values were marked-to-market based on the current spot rate and gains and losses from remeasurement of the Euro notional values, as well as the foreign exchange impact on the intercompany loans, were included in Other income (expense), net in the consolidated statements of operations. In March 2015, the Company settled its cross-currency swap agreements. • Commodity Risk Management The Company has exposure to the prices of commodities in its procurement of certain raw materials. The Company manages its exposure to commodity risk primarily through the use of long-term supply agreements, multi-year purchasing and sales agreements and forward purchase contracts. The Company regularly assesses its practice of using forward purchase contracts and other raw material hedging instruments in accordance with changes in economic conditions. Forward purchases and swap contracts for raw materials are principally settled through physical delivery of the commodity. For qualifying contracts, the Company has elected to apply the normal purchases and normal sales exception based on the probability at the inception and throughout the term of the contract that the Company would not net settle and the transaction would result in the physical delivery of the commodity. Accordingly, realized gains and losses on these contracts are included in the cost of the commodity upon the settlement of the contract. Insurance Loss Reserves The Company has two wholly-owned insurance companies (the "Captives") that are used as a form of self-insurance for liability and workers compensation risks. Capitalization of the Captives is determined by regulatory guidelines. Premiums written are recognized as revenue based on policy periods. One of the Captives also insures certain third-party risks. The Captives use reinsurance arrangements to reduce their risks, however these arrangements do not relieve the Captives from their obligations to policyholders. The financial condition of the Captives' reinsurers are monitored to minimize exposure to insolvencies. However, failure of the reinsurers to honor their obligations could result in losses to the Captives. Claim reserves are established when sufficient information is available to indicate a specific policy is involved and the Company can reasonably estimate its liability. These reserves are based on management estimates and periodic actuarial valuations. In addition, reserves have been established to cover exposures for both known and unreported claims. Estimates of these liabilities are reviewed and updated regularly, however it is possible that actual results could differ significantly from the recorded liabilities. Asset Retirement Obligations Periodically, the Company will conclude a site no longer has an indeterminate life based on long-lived asset impairment triggering events and decisions made by the Company. Accordingly, the Company will record asset retirement obligations associated with such sites. To measure the fair value of the asset retirement obligations, the Company will use the expected present value technique, which is classified as a Level 3 fair value measurement. The expected present value technique uses a set of cash flows that represent the probability-weighted average of all possible cash flows based on the Company's judgment. The Company uses the following inputs to determine the fair value of the asset retirement obligations based on the Company's experience with fulfilling obligations of this type and the Company's knowledge of market conditions: (a) labor costs; (b) allocation of overhead costs; (c) profit on labor and overhead costs; (d) effect of inflation on estimated costs and profits; (e) risk premium for bearing the uncertainty inherent in cash flows, other than inflation; (f) time value of money represented by the risk-free interest rate commensurate with the timing of the associated cash flows; and (g) nonperformance risk relating to the liability, which includes the Company's own credit risk. The asset retirement obligations are accreted to their undiscounted values until the time at which they are expected to be settled. The Company has identified but not recognized asset retirement obligations related to certain of its existing operating facilities. Examples of these types of obligations include demolition, decommissioning, disposal and restoration activities. Legal obligations exist in connection with the retirement of these assets upon closure of the facilities or abandonment of the existing operations. However, the Company currently plans on continuing operations at these facilities indefinitely and therefore, a reasonable estimate of fair value cannot be determined at this time. In the event the Company considers plans to abandon or cease operations at these sites, an asset retirement obligation will be reassessed at that time. If certain operating facilities were to close, the related asset retirement obligations could significantly affect the Company's results of operations and cash flows. Environmental Liabilities The Company manufactures and sells a diverse line of chemical products throughout the world. Accordingly, the Company's operations are subject to various hazards incidental to the production of industrial chemicals including the use, handling, processing, storage and transportation of hazardous materials. The Company recognizes losses and accrues liabilities relating to environmental matters if available information indicates that it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Depending on the nature of the site, the Company accrues through 15 years , unless the Company has government orders or other agreements that extend beyond 15 years . The Company estimates environmental liabilities on a case-by-case basis using the most current status of available facts, existing technology, presently enacted laws and regulations and prior experience in remediation of contaminated sites. Recoveries of environmental costs from other parties are recorded as assets when their receipt is deemed probable. An environmental reserve related to cleanup of a contaminated site might include, for example, a provision for one or more of the following types of costs: site investigation and testing costs, cleanup costs, costs related to soil and water contamination resulting from tank ruptures and post-remediation monitoring costs. These undiscounted reserves do not take into account any claims or recoveries from insurance. The measurement of environmental liabilities is based on the Company's periodic estimate of what it will cost to perform each of the elements of the remediation effort. The Company utilizes third parties to assist in the management and development of cost estimates for its sites. Changes to environmental regulations or other factors affecting environmental liabilities are reflected in the consolidated financial statements in the period in which they occur. Deferred Financing Costs Deferred financing costs are amortized using a method that approximates the effective interest rate method over the term of the related debt into Interest expense in the consolidated statements of operations. Upon the extinguishment of the related debt, any unamortized deferred financing costs are immediately expensed and included in Refinancing expense in the consolidated statements of operations. Upon the modification of the related debt, a portion of unamortized deferred financing costs may be immediately expensed and included in Refinancing expense in the consolidated statements of operations. Direct costs of refinancing activities are immediately expensed and included in Refinancing expense in the consolidated statements of operations. Pension and Other Postretirement Obligations The Company recognizes a balance sheet asset or liability for each of its pension and other postretirement benefit plans equal to the plan's funded status as of a December 31 measurement date. The amounts recognized in the consolidated financial statements related to pension and other postretirement benefits are determined on an actuarial basis. Various assumptions are used in the calculation of the actuarial valuation of the employee benefit plans. These assumptions include the discount rate, compensation levels, expected long-term rates of return on plan assets and trends in health care costs. In addition, actuarial consultants use factors such as withdrawal and mortality rates to estimate the projected benefit obligation. The Company applies the long-term expected rate of return to the fair value of plan assets and immediately recognizes in operating results the change in fair value of plan assets and net actuarial gains and losses annually in the fourth quarter of each fiscal year and whenever a plan is required to be remeasured. Events requiring a plan remeasurement will be recognized in the quarter in which such remeasurement event occurs. The remaining components of pension and other postretirement plan net periodic benefit costs are recorded on a quarterly basis. The Company allocates the service cost and amortization of prior service cost (or credit) components of its pension and postretirement plans to its business segments. Interest cost, expected return on assets and net actuarial gains and losses are considered financing activities managed at the corporate level and are recorded to Other Activities. The Company believes the expense allocation appropriately matches the cost incurred for active employees to the respective business segment. Other postretirement benefit plans provide medical and life insurance benefits to retirees who meet minimum age and service requirements. The key determinants of the accumulated postretirement benefit obligation ("APBO") are the discount rate and the health care cost trend rate. • Discount Rate As of the measurement date, the Company determines the appropriate discount rate used to calculate the present value of future cash flows currently expected to be required to settle the pension and other postretirement benefit obligations. The discount rate is generally based on the yield on high-quality corporate fixed-income securities. In the US, the rate used to discount pension and other postretirement benefit plan liabilities is based on a yield curve developed from market data of over 300 Aa-grade non-callable bonds at the measurement date. This yield curve has discount rates that vary based on the duration of the obligations. The estimated future cash flows for the pension and other benefit obligations were matched to the corresponding rates on the yield curve to derive a weighted average discount rate. The Company determines its discount rates in the Euro zone using the iBoxx Euro Corporate AA Bond indices with appropriate adjustments for the duration of the plan obligations. In other international locations, the Company determines its discount rates based on the yields of high quality government bonds with a duration appropriate to the duration of the plan obligations. • Expected Long-Term Rate of Return on Assets The Company determines the long-term expected rate of return on plan assets by considering the current target asset allocation, as well as the historical and expected rates of return on various asset categories in which the plans are invested. A single long-term expected rate of return on plan assets is then calculated for each plan as the weighted average of the target asset allocation and the long-term expected rate of return assumptions for each asset category within each plan. The expected rate of return is assessed annually and is based on long-term relationships among major asset classes and the level of incremental returns that can be earned by the successful implementation of different active investment management strategies. Equity returns are based on estimates of long-term inflation rate, real rate of return, 10-year Treasury bond premium over cash and historical equity risk premium. Fixed income returns are based on maturity, historical long-term inflation, real rate of return and credit spreads. • Investment Policies and Strategies The investment objectives for the Company's pension plans are to earn, over a moving twenty-year period, a long-term expected rate of return, net of investment fees and transaction costs, sufficient to satisfy the benefit obligations of the plan, while at the same time maintaining adequate liquidity to pay benefit obligations and proper expenses, and meet any other cash needs, in the short- to medium-term. The equity and debt securities objectives are to provide diversified exposure across the US and global equity markets and to manage the risks and returns of the plans through the use of multiple managers and strategies. The fixed income strategy is designed to reduce liability-related interest rate risk by investing in bonds that match the duration and credit quality of the plan liabilities. Derivatives-based strategies may be used to mitigate investment risks. The financial objectives of the qualified pension plans are established in conjunction with a comprehensive review of each plan's liability structure. The Company's asset allocation policy is based on detailed asset/liability analysis. In developing investment policy and financial goals, consideration is given to each plan's demographics, the returns and risks associated with current and alternative investment strategies and the current and projected cash, expense and funding ratios of each plan. Investment policies must also comply with local statutory requirements as determined by each country. A formal asset/liability study of each plan is undertaken every three to five years or whenever there has been a material change in plan demographics, benefit structure or funding status and investment market. The Company has adopted a long-term investment horizon such that the risk and duration of investment losses are weighed against the long-term potential for appreciation of assets. Although there cannot be complete assurance that these objectives will be realized, it is believed that the likelihood for their realization is reasonably high, based upon the asset allocation chosen and the historical and expected performance of the asset classes utilized by the plans. The intent is for investments to be broadly diversified across asset classes, investment styles, market sectors, investment managers, developed and emerging markets and securities in order to moderate portfolio volatility and risk. Investments may be in separate accounts, commingled trusts, mutual funds and other pooled asset portfolios provided they all conform to fiduciary standards. External investment managers are hired to manage pension assets. Investment consultants assist with the screening process for each new manager hired. Over the long-term, the investment portfolio is expected to earn returns that exceed a composite of market indices that are weighted to match each plan's target asset allocation. The portfolio return should also (over the long-term) meet or exceed the return used for actuarial calculations in order to meet the future needs of each plan. Commitments and Contingencies Due to the inherent subjectivity of assessments and unpredictability of outcomes of legal proceedings, the Company's litigation accruals and estimates of possible loss or range of possible loss ("Possible Loss") may not represent the ultimate loss to the Company from legal proceedings. For reasonably possible loss contingencies that may be material, the Company estimates its Possible Loss when determinable, considering that the Company could incur no loss in certain matters. For some matters, the Company is unab |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-17, Balance Sheet Classification of Deferred Taxes ("ASU 2015-17"). ASU 2015-17 requires deferred tax liabilities and assets to be classified as noncurrent in a classified statement of financial position. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the impact of adopting this ASU to be material to the Company's financial statements and related disclosures. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory ("ASU 2015-11"). ASU 2015-11 applies to inventory that is measured using the FIFO or average cost method and requires measurement of that inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the impact of adopting this ASU to be material to the Company's financial statements and related disclosures. In May 2015, the FASB issued ASU 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) ("ASU 2015-07"). ASU 2015-07 removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. This ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, such disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. This ASU is effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. The Company has elected to early adopt ASU 2015-07 in accordance with the FASB's disclosure simplification initiatives. In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). ASU 2015-03 requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying value of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. The amendments in ASU 2015-03 require retrospective application and represent a change in accounting principle. The Company elected to early adopt ASU 2015-03 for the year ended December 31, 2015, and applied its provisions retrospectively. The adoption of ASU 2015-03 resulted in the reclassification of $22 million of unamortized debt issuance costs from Other noncurrent assets to a reduction of Long-term debt in the consolidated balance sheet as of December 31, 2014. Unamortized debt issuance costs of $18 million were recorded as a reduction to Long-term debt in the consolidated balance sheet as of December 31, 2015. Unamortized debt issuance costs related to the Company's revolving credit and accounts receivable securitization facilities are included in Other noncurrent assets in the consolidated balance sheets. The adoption of ASU 2015-03 did not have an impact on the Company's consolidated statements of operations or consolidated statements of cash flows. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers ("ASU 2014-09") . ASU 2014-09 supersedes the revenue recognition requirements of FASB Accounting Standards Codification ("ASC") Topic 605, Revenue Recognition and most industry-specific guidance throughout the ASC, resulting in the creation of FASB ASC Topic 606, Revenue from Contracts with Customers . ASU 2014-09 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. This ASU provides alternative methods of adoption. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers, Deferral of the Effective Date ("ASU 2015-14"). ASU 2015-14 defers the effective date of ASU 2014-09 by one year to December 15, 2017 for fiscal years, and interim periods within those years, beginning after that date and permits early adoption of the standards, but not before original effective date for fiscal years beginning after December 15, 2016. The Company is currently assessing the potential impact of adopting ASU 2014-09 on its financial statements and related disclosures. |
Acquisitions, Dispositions and
Acquisitions, Dispositions and Plant Closures | 12 Months Ended |
Dec. 31, 2015 | |
Acquisitions, Dispositions and Plant Closures [Abstract] | |
Acquisitions, Dispositions and Plant Closures [Text Block] | Acquisitions, Dispositions and Plant Closures Acquisitions In October 2014, the Company completed the acquisition of substantially all of the assets of Cool Polymers, Inc., including CoolPoly ® , a portfolio of thermally conductive polymers for cash plus contingent consideration ( Note 25 ), to support the strategic growth of the Company's engineered materials business. The acquired operations are included in the Company's Advanced Engineered Materials segment. Pro forma financial information since the respective acquisition date has not been provided as the acquisition did not have a material impact on the Company's financial information. The Company allocated the purchase price of the acquisition to identifiable assets based on their estimated fair values. The excess of the purchase price over the aggregate fair values was recorded as goodwill ( Note 2 and Note 11 ). Plant Closures • Lanaken, Belgium On April 22, 2015, the Company announced its intention to consult with employee representatives on a potential 50% capacity reduction at its acetate tow facility in Lanaken, Belgium. On December 1, 2015, the Company announced it had completed the consultation process pursuant to which the Company ceased 50% of manufacturing operations in December 2015. The Lanaken, Belgium operations are included in the Company's Consumer Specialties segment. The exit costs and plant shutdown costs related to the capacity reduction at the Lanaken facility ( Note 18 ) are as follows: Year Ended 2015 (In $ millions) Employee termination benefits (1) (24 ) Accelerated depreciation (10 ) Total (34 ) ______________________________ (1) Included in Other (charges) gains, net in the consolidated statements of operations. • Tarragona, Spain In March 2015, the Company launched a sale process for its conventional and vinyl acetate ethylene ("VAE") emulsions facilities in Tarragona, Spain. On December 4, 2015, the Company announced the sale of its conventional emulsions production facility. The Company was unable to find a credible buyer for the VAE emulsions facility, resulting in its closure. The Company completed the information and consultation process with employee representatives pursuant to which the Company ceased all manufacturing operations at the VAE emulsions facility. The Tarragona, Spain operations are included in the Company's Industrial Specialties segment. The exit costs and plant shutdown costs related to the closure of the Tarragona VAE facility and the sale of the conventional facility ( Note 18 ) are as follows: Year Ended 2015 (In $ millions) Employee termination benefits (1) (6 ) Asset impairments (1) (1 ) Accelerated depreciation (9 ) Total (16 ) ______________________________ (1) Included in Other (charges) gains, net in the consolidated statements of operations. • Meredosia, Illinois On December 15, 2015, the Company ceased operation of its VAE emulsions facility in Meredosia, Illinois. The Meredosia, Illinois operations are included in the Company's Industrial Specialties segment. The exit costs and plant shutdown costs related to the closure of the Meredosia, Illinois VAE facility ( Note 18 ) are as follows: Year Ended 2015 (In $ millions) Employee termination benefits (1) (1 ) Asset impairments (1) (1 ) Accelerated depreciation (19 ) Other (1 ) Total (22 ) ______________________________ (1) Included in Other (charges) gains, net in the consolidated statements of operations. During the year ended December 31, 2015 , the Company also recorded $39 million in accelerated depreciation expense related to property, plant and equipment no longer in use at the Company's ethanol technology development unit in Clear Lake, Texas. The accelerated depreciation is included in Research and development expenses in the consolidated statements of operations and is included in the Company's Acetyl Intermediates segment. Plant Relocation In November 2006, the Company finalized a settlement agreement with the Frankfurt, Germany Airport ("Fraport") that required the Company to cease operations at its Kelsterbach, Germany POM site and sell the site, including land and buildings, to Fraport, resolving several years of legal disputes related to the planned Fraport expansion. Upon completion of certain activities as specified in the settlement agreement, title to the land and buildings transferred to Fraport during the three months ended December 31, 2013, and deferred proceeds of €651 million were recognized in Gain (loss) on disposition of businesses and assets, net in the consolidated statements of operations. The activity was included in the Company's Advanced Engineered Materials segment. |
Ventures and Variable Interest
Ventures and Variable Interest Entities | 12 Months Ended |
Dec. 31, 2015 | |
Ventures and Variable Interest Entities [Abstract] | |
Ventures and Variable Interest Entities | Ventures and Variable Interest Entities Consolidated Variable Interest Entities In February 2014, the Company formed a joint venture, Fairway Methanol LLC ("Fairway"), with Mitsui & Co., Ltd., of Tokyo, Japan ("Mitsui"), in which the Company owns a 50% interest, for the production of methanol at the Company's integrated chemical plant in Clear Lake, Texas. The methanol unit utilizes natural gas in the US Gulf Coast region as a feedstock and benefits from the existing infrastructure at the Company's Clear Lake facility. Both Mitsui and the Company supply their own natural gas to Fairway in exchange for methanol tolling under a cost-plus off-take arrangement. The methanol facility has an annual capacity of 1.3 million tons. Fairway began production in October 2015. The Company determined that Fairway is a variable interest entity ("VIE") in which the Company is the primary beneficiary. Under the terms of the joint venture agreements, the Company provides site services and day-to-day operations for the methanol facility. In addition, the joint venture agreements provide that the Company indemnifies Mitsui for environmental obligations that exceed a specified threshold, as well as an equity option between the partners. Accordingly, the Company consolidates the venture and records a noncontrolling interest for the share of the venture owned by Mitsui. Fairway is included in the Company's Acetyl Intermediates segment. The carrying amount of the assets and liabilities associated with Fairway included in the consolidated balance sheets are as follows: As of December 31, 2015 2014 (In $ millions) Cash and cash equivalents 7 1 Trade receivables, net - third party & affiliate 12 — Property, plant and equipment (net of accumulated depreciation - 2015: $10) 772 530 Intangible assets (net of accumulated amortization - 2015: $0) 27 — Other assets 13 29 Total assets (1) 831 560 Trade payables 9 — Current liabilities (2) 5 40 Long-term debt 5 — Deferred income taxes 2 — Total liabilities 21 40 ______________________________ (1) Assets can only be used to settle the obligations of Fairway. (2) Amounts owed by Fairway to the Company for reimbursement of expenditures. Nonconsolidated Variable Interest Entities The Company holds variable interests in entities that supply certain raw materials and services to the Company. The variable interests primarily relate to cost-plus contractual arrangements with the suppliers and recovery of capital expenditures for certain plant assets plus a rate of return on such assets. Liabilities for such supplier recoveries of capital expenditures have been recorded as capital lease obligations. The entities are not consolidated because the Company is not the primary beneficiary of the entities as it does not have the power to direct the activities of the entities that most significantly impact the entities' economic performance. The Company's maximum exposure to loss as a result of its involvement with these VIEs as of December 31, 2015 relates primarily to the recovery of capital expenditures for certain property, plant and equipment. The carrying amount of the assets and liabilities associated with the obligations to nonconsolidated VIEs, as well as the maximum exposure to loss relating to these nonconsolidated VIEs are as follows: As of December 31, 2015 2014 (In $ millions) Property, plant and equipment, net 73 96 Trade payables 47 43 Current installments of long-term debt 10 9 Long-term debt 109 125 Total liabilities 166 177 Maximum exposure to loss 268 291 The difference between the total liabilities associated with obligations to unconsolidated VIEs and the maximum exposure to loss primarily represents take-or-pay obligations for services included in the Company's unconditional purchase obligations ( Note 24 ). |
Marketable Securities, at Fair
Marketable Securities, at Fair Value | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities, at Fair Value | Marketable Securities, at Fair Value The Company's nonqualified trusts hold available-for-sale securities for funding requirements of the Company's nonqualified pension plans ( Note 15 ) as follows: As of December 31, 2015 2014 (In $ millions) Amortized cost 30 32 Gross unrealized gain — — Gross unrealized loss — — Fair value 30 32 |
Receivables, Net
Receivables, Net | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Receivables, Net | Receivables, Net As of December 31, 2015 2014 (In $ millions) Trade receivables - third party and affiliates 712 810 Allowance for doubtful accounts - third party and affiliates (6 ) (9 ) Trade receivables - third party and affiliates, net 706 801 As of December 31, 2015 2014 (In $ millions) Non-income taxes receivable 121 99 Reinsurance receivables 18 20 Income taxes receivable 79 50 Other 67 72 Non-trade receivables, net 285 241 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories As of December 31, 2015 2014 (In $ millions) Finished goods 498 579 Work-in-process 43 53 Raw materials and supplies 141 150 Total 682 782 |
Investments in Affiliates
Investments in Affiliates | 12 Months Ended |
Dec. 31, 2015 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Investments in Affiliates | Investments in Affiliates Entities in which the Company has an investment accounted for under the cost or equity method of accounting are considered affiliates; any transactions or balances with such companies are considered affiliate transactions. Equity Method Equity method investments and ownership interests by business segment are as follows: Ownership December 31, Carrying December 31, Share of December 31, Dividends and December 31, 2015 2014 2015 2014 2015 2014 2013 2015 2014 2013 (In percentages) (In $ millions) Advanced Engineered Materials Ibn Sina 25 25 87 97 88 115 111 (98 ) (85 ) (97 ) Fortron Industries LLC 50 50 100 97 11 9 8 (8 ) (7 ) (5 ) Korea Engineering Plastics Co., Ltd. 50 50 127 134 16 10 15 (10 ) (16 ) (19 ) Polyplastics Co., Ltd. 45 45 168 166 35 27 14 (20 ) (3 ) — Other Activities (1) InfraServ GmbH & Co. Gendorf KG 39 39 37 39 7 9 10 (5 ) (7 ) (6 ) InfraServ GmbH & Co. Hoechst KG (2) 32 32 147 174 21 72 17 (32 ) (26 ) (9 ) InfraServ GmbH & Co. Knapsack KG 27 27 18 20 4 4 4 (3 ) (4 ) (5 ) Consumer Specialties Sherbrooke Capital Health and Wellness, L.P. (3) 10 10 3 4 (1 ) — 1 — — — Total 687 731 181 246 180 (176 ) (148 ) (141 ) ______________________________ (1) InfraServ real estate service companies ("InfraServ Entities") own and operate sites in Frankfurt am Main-Hoechst, Gendorf and Knapsack, Germany. The InfraServ Entities were created to own land and property and to provide various technical and administrative services at these manufacturing locations. (2) InfraServ GmbH & Co. Hoechst KG is owned primarily by an entity included in the Company's Other Activities. The Company's Consumer Specialties segment and Acetyl Intermediates segment also each hold an ownership percentage. During the three months ended June 30, 2014, InfraServ GmbH & Co. Hoechst KG restructured the debt of a subsidiary resulting in additional equity in net earnings of affiliates of $48 million . (3) The Company accounts for its ownership interest in Sherbrooke Capital Health and Wellness, L.P. under the equity method of accounting because the Company is able to exercise significant influence. Cost Method Cost method investments and ownership interests by business segment are as follows: Ownership December 31, Carrying December 31, Dividend December 31, 2015 2014 2015 2014 2015 2014 2013 (In percentages) (In $ millions) Consumer Specialties Kunming Cellulose Fibers Co. Ltd. 30 30 14 14 14 15 13 Nantong Cellulose Fibers Co. Ltd. 31 31 106 106 79 87 68 Zhuhai Cellulose Fibers Co. Ltd. 30 30 22 14 13 13 11 Other Activities InfraServ GmbH & Co. Wiesbaden KG 8 8 5 6 1 1 1 Other 4 5 — — — Total 151 145 107 116 93 Transactions with Affiliates The Company owns manufacturing facilities at the InfraServ location in Frankfurt am Main-Hoechst, Germany and has contractual agreements with the InfraServ Entities and certain other equity affiliates and investees accounted for under the cost method. These contractual agreements primarily relate to energy purchases, site services and purchases of product for consumption and resale. Transactions and balances with affiliates are as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) Purchases 195 231 264 Sales — — — As of December 31, 2015 2014 (In $ millions) Non-trade receivables 23 31 Total due from affiliates 23 31 Short-term borrowings (1) 16 16 Trade payables 34 39 Current Other liabilities 6 6 Total due to affiliates 56 61 ______________________________ (1) The Company has agreements with certain affiliates whereby excess affiliate cash is lent to and managed by the Company at variable interest rates governed by those agreements. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net As of December 31, 2015 2014 (In $ millions) Land 39 42 Land improvements 60 49 Buildings and building improvements 679 658 Machinery and equipment 4,609 3,910 Construction in progress 261 890 Gross asset value 5,648 5,549 Accumulated depreciation (2,039 ) (1,816 ) Net book value 3,609 3,733 Assets under capital leases, net, included in the amounts above are as follows: As of December 31, 2015 2014 (In $ millions) Buildings 13 15 Machinery and equipment 289 311 Accumulated depreciation (138 ) (125 ) Net book value 164 201 Capitalized interest costs and depreciation expense are as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) Capitalized interest 15 16 9 Depreciation expense 346 272 280 During 2015 and 2013 , certain long-lived assets were impaired ( Note 18 ). No long-lived assets were impaired during 2014 . |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Goodwill Advanced Engineered Materials Consumer Specialties Industrial Specialties Acetyl Intermediates Total (In $ millions) As of December 31, 2013 303 254 43 198 798 Acquisitions ( Note 4 ) 9 — — — 9 Exchange rate changes (17 ) (14 ) (2 ) (25 ) (58 ) As of December 31, 2014 295 240 41 173 749 Acquisitions ( Note 4 ) — — — — — Exchange rate changes (13 ) (10 ) (2 ) (19 ) (44 ) As of December 31, 2015 (1) 282 230 39 154 705 ______________________________ (1) There were $0 million of accumulated impairment losses as of December 31, 2015 . In connection with the Company's annual goodwill impairment assessment, the Company did not record an impairment loss to goodwill during the three months ended September 30, 2015 as the estimated fair value for each of the Company's reporting units exceeded the carrying amount of the underlying assets by a substantial margin ( Note 2 ). No events or changes in circumstances occurred during the three months ended December 31, 2015 that would indicate that the carrying amount of the assets may not be fully recoverable. Accordingly, no additional impairment analysis was performed during that period. Intangible Assets, Net Finite-lived intangible assets are as follows: Licenses Customer- Related Intangible Assets Developed Technology Covenants Not to Compete and Other Total (In $ millions) Gross Asset Value As of December 31, 2013 33 544 30 39 646 Acquisitions ( Note 4 ) — 2 3 10 15 (1) Exchange rate changes (1 ) (51 ) — — (52 ) As of December 31, 2014 32 495 33 49 609 Acquisitions ( Note 5 ) 7 — 2 1 10 (2) Exchange rate changes (1 ) (39 ) — — (40 ) As of December 31, 2015 38 456 35 50 579 Accumulated Amortization As of December 31, 2013 (20 ) (521 ) (21 ) (25 ) (587 ) Amortization (3 ) (12 ) (3 ) (2 ) (20 ) Exchange rate changes — 50 1 — 51 As of December 31, 2014 (23 ) (483 ) (23 ) (27 ) (556 ) Amortization (3 ) (4 ) (2 ) (2 ) (11 ) Exchange rate changes 1 38 — — 39 As of December 31, 2015 (25 ) (449 ) (25 ) (29 ) (528 ) Net book value 13 7 10 21 51 ______________________________ (1) Includes intangible assets acquired from Cool Polymers, Inc. with a weighted average amortization period of seven years ( Note 4 ). Also includes intangible assets reimbursed by Mitsui ( Note 5 ) during the year ended December 31, 2014 . (2) Primarily related to intangible assets acquired by Fairway ( Note 5 ) during the year ended December 31, 2015, with a weighted average amortization period of 16 years . Indefinite-lived intangible assets are as follows: Trademarks and Trade Names (In $ millions) As of December 31, 2013 83 Acquisitions ( Note 4 ) 2 Impairment loss ( Note 2 ) — Exchange rate changes (6 ) As of December 31, 2014 79 Acquisitions ( Note 4 ) — Impairment loss ( Note 2 ) — Exchange rate changes (5 ) As of December 31, 2015 74 In connection with the Company's annual indefinite-lived intangible assets impairment assessment, the Company did not record an impairment loss to indefinite-lived intangible assets during the three months ended September 30, 2015 as the estimated fair value for each of the Company's indefinite-lived intangible assets exceeded the carrying amount of the underlying asset by a substantial margin ( Note 2 ). No events or changes in circumstances occurred during the three months ended December 31, 2015 that would indicate that the carrying amount of the assets may not be fully recoverable. Accordingly, no additional impairment analysis was performed during that period. The Company's trademarks and trade names have an indefinite life. For the year ended December 31, 2015 , the Company did not renew or extend any intangible assets. Estimated amortization expense for the succeeding five fiscal years is as follows: (In $ millions) 2016 9 2017 8 2018 5 2019 4 2020 3 |
Current Other Liabilities
Current Other Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities, Current [Abstract] | |
Current Other Liabilities | Current Other Liabilities As of December 31, 2015 2014 (In $ millions) Asset retirement obligations 10 9 Benefit obligations ( Note 15 ) 31 28 Customer rebates 45 53 Derivatives ( Note 22 ) 2 13 Environmental ( Note 16 ) 11 21 Insurance 10 9 Interest 16 19 Restructuring ( Note 18 ) 30 21 Salaries and benefits 109 129 Sales and use tax/foreign withholding tax payable 13 13 Uncertain tax positions ( Note 19 ) — 59 Other 53 58 Total 330 432 |
Noncurrent Other Liabilities
Noncurrent Other Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities, Noncurrent [Abstract] | |
Noncurrent Other Liabilities | Noncurrent Other Liabilities As of December 31, 2015 2014 (In $ millions) Asset retirement obligations 26 28 Deferred proceeds 43 47 Deferred revenue 13 21 Derivatives ( Note 22 ) — 10 Environmental ( Note 16 ) 61 63 Income taxes payable 7 13 Insurance 50 51 Other 47 50 Total 247 283 Changes in asset retirement obligations are as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) Balance at beginning of year 37 47 64 Additions (1) — 4 5 Accretion 1 1 2 Payments (4 ) (8 ) (23 ) Revisions to cash flow estimates (2) 2 (7 ) (2 ) Exchange rate changes — — 1 Balance at end of year 36 37 47 ______________________________ (1) Primarily relates to sites which management no longer considers to have an indeterminate life. (2) Primarily relates to revisions to the estimated cost and timing of future obligations. Included in the asset retirement obligations for the years ended December 31, 2015 and 2014 is $10 million and $10 million , respectively, related to indemnifications received for a business acquired in 2005. The Company has a corresponding receivable of $1 million in Non-trade receivables, net and $9 million included in noncurrent Other assets in the consolidated balance sheet as of December 31, 2015 . |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of December 31, 2015 2014 (In $ millions) Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates Current installments of long-term debt 56 25 Short-term borrowings, including amounts due to affiliates (1) 52 77 Revolving credit facility (2) 350 — Accounts receivable securitization facility (3) 55 35 Total 513 137 ______________________________ (1) The weighted average interest rate was 3.3% and 4.7% as of December 31, 2015 and 2014 , respectively. (2) The weighted average interest rate was 1.8% and 0.0% as of December 31, 2015 and 2014 , respectively. (3) The weighted average interest rate was 0.8% and 0.7% as of December 31, 2015 and 2014 , respectively. As of December 31, 2015 2014 (In $ millions) Long-Term Debt Senior credit facilities - Term C-2 loan due 2016 30 34 Senior credit facilities - Term C-3 loan due 2018 878 906 Senior unsecured notes due 2019, interest rate of 3.250% 327 364 Senior unsecured notes due 2021, interest rate of 5.875% 400 400 Senior unsecured notes due 2022, interest rate of 4.625% 500 500 Pollution control and industrial revenue bonds due at various dates through 2030, interest rates ranging from 5.7% to 6.7% 169 169 Obligations under capital leases due at various dates through 2054 238 260 Subtotal 2,542 2,633 Unamortized debt issuance costs (1) (18 ) (22 ) Current installments of long-term debt (56 ) (25 ) Total 2,468 2,586 ______________________________ (1) Related to the Company's outstanding senior credit facilities - Term C-2 and Term C-3 loans, senior unsecured notes issued in public offerings registered under the Securities Act of 1933 (collectively, the "Senior Notes") and pollution control bonds. Senior Notes The Company has outstanding Senior Notes, as follows: Senior Notes Issue Date Principal Interest Rate Interest Pay Dates Maturity Date (In millions) (In percentages) 3.250% Notes September 2014 €300 3.250 April 15 October 15 October 15, 2019 4.625% Notes November 2012 $500 4.625 March 15 September 15 November 15, 2022 5.875% Notes May 2011 $400 5.875 June 15 December 15 June 15, 2021 The Senior Notes are senior unsecured obligations of Celanese US and rank equally in right of payment with all other unsubordinated indebtedness of Celanese US. The Senior Notes were issued under indentures (collectively, the "Indentures") among Celanese US, Celanese and each of the domestic subsidiaries of Celanese US that guarantee its obligations under its senior secured credit facilities ("Subsidiary Guarantors") and Wells Fargo Bank, National Association, as trustee. The Senior Notes are guaranteed on a senior unsecured basis by Celanese and the Subsidiary Guarantors. The Indentures contain covenants, including, but not limited to, restrictions on the Company's ability to incur indebtedness; grant liens on assets; merge, consolidate, or sell assets; pay dividends or make other restricted payments; engage in transactions with affiliates; or engage in other businesses. Celanese US may redeem some or all of each of the Senior Notes, prior to their respective maturity dates, at a redemption price of 100% of the principal amount, plus a "make-whole" premium as specified in the applicable indenture, plus accrued and unpaid interest, if any, to the redemption date. In October 2014 , Celanese US redeemed its $600 million of principal amount of 6.625% unsecured senior notes due 2018 ("6.625% Notes") at a redemption price of 103.313% of the face amount for a total principal and premium payment of $620 million plus accrued interest of $20 million . Proceeds from the issuance of the 3.250% Notes were used to partially fund the redemption of the 6.625% Notes, as well as cash on hand. The Company recognized a loss on the extinguishment of the 6.625% Notes comprised of the redemption premium of $20 million and accelerated amortization of deferred financing costs of $4 million , which were included in Refinancing expense in the consolidated statement of operations for the year ended December 31, 2014. Senior Credit Facilities In September 2014, Celanese US, Celanese and the Subsidiary Guarantors entered into an amendment agreement with the lenders under Celanese US's existing senior secured credit facilities in order to amend and restate the amended credit agreement dated September 16, 2013 (as amended and restated by the 2014 amendment agreement, the "Amended Credit Agreement"). Under the Amended Credit Agreement, all of the US dollar denominated Term C-2 term loans and all but €28 million of the Euro-denominated Term C-2 term loans under the 2013 amended credit agreement were converted into, or refinanced by, the Term C-3 loan facility with an extended maturity date of October 2018 . The non-extended portions of the Term C-2 loan facility continue to have a maturity date of October 2016 . In addition, the maturity date of the Company's revolving credit facility was extended to October 2018 and the facility was increased to $900 million . Accordingly, the Amended Credit Agreement consists of the Term C-2 loan facility, the Term C-3 loan facility and a $900 million revolving credit facility. Net deferred financing costs are as follows: (In $ millions) As of December 31, 2012 30 Financing costs deferred (1) 2 Accelerated amortization due to refinancing activity — Amortization (5 ) As of December 31, 2013 27 Financing costs deferred (2) 10 Accelerated amortization due to refinancing activity (3) (5 ) Amortization (5 ) As of December 31, 2014 (4) 27 Financing costs deferred — Accelerated amortization due to refinancing activity — Amortization (5 ) As of December 31, 2015 (4) 22 ____________________________ (1) Relates to the September 2013 amendment to the Celanese US existing senior secured credit facilities to reduce the interest rates payable in connection with certain borrowings thereby creating the Term C-2 loan facility due 2016 . (2) Includes $6 million related to the issuance of the 3.250% Notes and $4 million related to the September 2014 amendment to the Celanese US existing senior secured credit facilities. (3) Includes $4 million related to the 6.625% Notes redemption and $1 million related to the Term C-2 loan facility conversion. (4) Includes $4 million and $5 million as of December 31, 2015 and 2014 , respectively, related to the Company's revolving credit facility and accounts receivables securitization facility, which are included in Other noncurrent assets in the consolidated balance sheets. As of December 31, 2015 , the margin for borrowings under the Term C-2 loan facility was 2.0% above the Euro Interbank Offered Rate ("EURIBOR") and the margin for borrowings under the Term C-3 loan facility was 2.25% above LIBOR (for US dollars) and 2.25% above EURIBOR (for Euros), as applicable. As of December 31, 2015 , the margin for borrowings under the revolving credit facility was 1.5% above LIBOR. The margin for borrowings under the revolving credit facility is subject to increase or decrease in certain circumstances based on changes in the corporate credit ratings of Celanese or Celanese US. Term loan borrowings under the Amended Credit Agreement are subject to amortization at 1% of the initial principal amount per annum, payable quarterly. In addition, the Company pays quarterly commitment fees on the unused portion of the revolving credit facility of 0.25% per annum. The Amended Credit Agreement is guaranteed by Celanese and certain domestic subsidiaries of Celanese US and is secured by a lien on substantially all assets of Celanese US and such guarantors, subject to certain agreed exceptions (including for certain real property and certain shares of foreign subsidiaries), pursuant to the Guarantee and Collateral Agreement, dated April 2, 2007 . As a condition to borrowing funds or requesting letters of credit be issued under the revolving credit facility, the Company's first lien senior secured leverage ratio (as calculated as of the last day of the most recent fiscal quarter for which financial statements have been delivered under the revolving facility) cannot exceed the threshold as specified below. Further, the Company's first lien senior secured leverage ratio must be maintained at or below that threshold while any amounts are outstanding under the revolving credit facility. The Company's amended first lien senior secured leverage ratios under the revolving credit facility are as follows: As of December 31, 2015 Maximum Estimate Estimate, if Fully Drawn 3.90 0.92 1.30 The Amended Credit Agreement contains covenants including, but not limited to, restrictions on the Company's ability to incur indebtedness; grant liens on assets; merge, consolidate, or sell assets; pay dividends or make other restricted payments; make investments; prepay or modify certain indebtedness; engage in transactions with affiliates; enter into sale-leaseback transactions or hedge transactions; or engage in other businesses; as well as a covenant requiring maintenance of a maximum first lien senior secured leverage ratio. The Amended Credit Agreement also maintains a number of events of default, including a cross default to other debt of Celanese, Celanese US, or their subsidiaries, including the Senior Notes, in an aggregate amount equal to more than $50 million and the occurrence of a change of control. Failure to comply with these covenants, or the occurrence of any other event of default, could result in acceleration of the borrowings and other financial obligations under the Amended Credit Agreement. The Company is in compliance with all of the covenants related to its debt agreements as of December 31, 2015 . Accounts Receivables Securitization Facility In August 2013, the Company entered into a US accounts receivable securitization facility pursuant to (i) a Purchase and Sale Agreement ("Sale Agreement") among certain US subsidiaries of the Company (each an "Originator"), Celanese International Corporation ("CIC") and CE Receivables LLC, a wholly-owned, "bankruptcy remote" special purpose subsidiary of an Originator ("Transferor") and (ii) a Receivables Purchase Agreement ("Purchase Agreement"), among CIC, as servicer, the Transferor, various third-party purchasers (collectively, "Purchasers") and The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as administrator ("Administrator"). During 2015, the Sale Agreement and the Purchase Agreement were amended to reflect changes to the parties. The Purchase Agreement expires in 2016 , but may be extended for successive one year terms by agreement of the parties. All of the Transferor's assets have been pledged to the Administrator in support of its obligations under the Purchase Agreement. The Company's balances available for borrowing are as follows: As of December 31, 2015 (In $ millions) Revolving Credit Facility Borrowings outstanding (1) 350 Letters of credit issued — Available for borrowing 550 Accounts Receivables Securitization Facility Borrowings outstanding (2) 55 Letters of credit issued 59 Available for borrowing — Total borrowing base 114 Maximum borrowing base (3) 120 ______________________________ (1) The Company borrowed $550 million and repaid $200 million during the year ended December 31, 2015 . Borrowings were primarily used to fund repurchases of the Company's Common Stock. (2) The Company borrowed $35 million and repaid $15 million during the year ended December 31, 2015 . (3) Outstanding accounts receivable transferred by the Originators to the Transferor was $131 million . On November 5, 2015, the Company reduced the maximum borrowing base from $135 million to $120 million . Principal payments scheduled to be made on the Company's debt, including short-term borrowings, are as follows: (In $ millions) 2016 513 2017 28 2018 882 2019 351 2020 28 Thereafter 1,197 Total 2,999 |
Benefit Obligations
Benefit Obligations | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Obligations | Benefit Obligations Pension Obligations The Company sponsors defined benefit pension plans in North America, Europe and Asia. Independent trusts or insurance companies administer the majority of these plans. Pension obligations are established for benefits payable in the form of retirement, disability and surviving dependent pensions. The commitments result from participation in defined contribution and defined benefit plans, primarily in the US. Benefits are dependent on years of service and the employee's compensation. Supplemental retirement benefits provided to certain employees are nonqualified for US tax purposes. Separate nonqualified trusts have been established for certain US nonqualified plan obligations. Pension costs under the Company's retirement plans are actuarially determined. In October 2014, the Company offered a limited-time, voluntary program to certain participants of the Company's US qualified defined benefit pension plan with a vested benefit who terminated from the Company on or before May 31, 2014. The limited-time opportunity ended in November 2014 and included an offer of a single lump sum payment in December 2014 or to begin monthly annuity payments, regardless of age, or to continue to defer benefits until retirement age. If an election was not made by the eligible participant, the participant will begin receiving payments when otherwise eligible under the terms of the US qualified defined benefit pension plan. The Company made lump sum payments under this program of $143 million in December 2014 using trust assets of the US qualified defined benefit pension plan. These actions resulted in the recognition of a settlement gain of $78 million in the consolidated statements of operations for the year ended December 31, 2014. Effective June 2014, the Company's US qualified defined benefit plan was amended and benefits offered to all current union participants of the Cash Balance Plan (hired on or after January 1, 2001) at the Company's Narrows, Virginia facility have been frozen and the US qualified defined benefit plan was closed to future union participants at the facility. Accumulated benefits earned and service rendered through May 2014 under the Plan provisions for the Cash Balance Plan Participants will continue to be considered for purposes of determining retirement benefits. Effective May 2014, the Company's US qualified defined benefit plan was amended and benefits offered to all current union participants of the Flat Rate Plan at the Company's Narrows, Virginia facility have been frozen and the US qualified defined benefit plan was closed to future union participants at the facility. Accumulated benefits earned and service rendered through December 2014 under the Plan provisions for the Flat Rate Plan Participants will continue to be considered for purposes of determining retirement benefits and eligibility for early retirement. These actions did not result in a curtailment gain or loss as the projected benefit obligation does not rely on salary assumptions. During the three months ended December 31, 2013, the Company settled certain of its defined benefit pension plan obligations in the United Kingdom and Canada, which resulted in the recognition of settlement losses of $9 million in the consolidated statement of operations. Effective December 2013, benefits offered to all US non-union eligible employees in the Company's US qualified defined benefit pension plan have been frozen and the US qualified defined benefit pension plan was closed to new participants. Accumulated benefits earned and service rendered through December 31, 2013 under the US qualified defined benefit pension plan provisions will continue to be considered for purposes of determining retirement benefits and eligibility for early retirement. These actions resulted in the recognition of a curtailment gain of $61 million in the consolidated statements of operations for the three months ended December 31, 2013. The Company participates in a multiemployer defined benefit plan and a multiemployer defined contribution plan in Germany covering certain employees. The Company's contributions to the multiemployer defined benefit plan are based on specified percentages of employee contributions as outlined in a works council agreement, covering all German entity employees hired prior to January 1, 2012. As of January 1, 2012, the multiemployer defined benefit pension plan described above was closed to new employees. Qualifying employees hired in Germany after December 31, 2011 are covered by a multiemployer defined contribution plan. The Company's contributions to the multiemployer defined contribution plan are based on specified percentages of employee contributions, similar to the multiemployer defined benefit plan, but at a lower rate. Statutory regulations and the works council agreement require the contributions to fully fund the multiemployer plans. The risks of participating in the multiemployer plans are different from single-employer plans in the following aspects: • Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. • If a participating employer stops contributing to the plan, any underfunding may be borne by the remaining participants, especially since regulations strictly enforce funding requirements. • If the Company chooses to stop participating in the multiemployer plan, the Company may be required to pay the plan an amount based on the underfunded status of the plan, referred to as the withdrawal liability. Based on the 2015 unaudited and 2014 audited multiemployer defined benefit plan's financial statements, the plan is 100% funded in 2015 , 2014 and 2013 . The number of employees covered by the Company's multiemployer defined benefit plan remained relatively stable year over year from 2013 to 2015 , resulting in minimal changes to employer contributions. Participation in the German multiemployer defined benefit plan is not considered individually significant to the Company. Contributions made by the Company to the German multiemployer plan are as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) Multiemployer defined benefit plan 6 8 8 Other Postretirement Obligations Certain retired employees receive postretirement health care and life insurance benefits under plans sponsored by the Company, which has the right to modify or terminate these plans at any time. The cost for coverage is shared between the Company and the retiree. The cost of providing retiree health care and life insurance benefits is actuarially determined and accrued over the service period of the active employee group. The Company's policy is to fund benefits as claims and premiums are paid. The US postretirement health care plan was closed to new participants effective January 1, 2006. In November 2013, the Company announced it would amend its primary US postretirement health care plan to (a) eliminate eligibility for all current and future US non-union employees; (b) terminate its US postretirement health care plan on December 31, 2014 for all US participants; and (c) offer certain eligible US participants a lump-sum buyout payment if they irrevocably waive all future benefits under the US postretirement health care plan and end their participation before December 31, 2014. These actions generated a prior service credit of $92 million , which was amortized ratably into the consolidated statements of operations from November 1, 2013 through December 31, 2014. Effective March 2014, the Company eliminated eligibility in its US postretirement health care plan for all current and future employees represented by the bargaining unit at the Company's Narrows, Virginia facility. These actions generated a prior service credit of $5 million , which was amortized ratably into the consolidated statements of operations from April 1, 2014 through December 31, 2014. The Company recognized $84 million and $13 million of prior service credit amortization and made $40 million and $23 million in lump-sum buyout payments as of December 31, 2014 and 2013, respectively. Postemployment Obligations The Company provides benefits to certain employees after employment but prior to retirement, including severance and disability-related benefits offered pursuant to ongoing benefit arrangements. The cost of providing postemployment benefits is actuarially determined and recorded when the obligation is probable of occurring and can be reasonably estimated. Postemployment obligations are as follows: As of December 31, 2015 2014 (In $ millions) Postemployment benefits 11 12 Defined Contribution Plans The Company sponsors various defined contribution plans in North America, Europe and Asia covering certain employees. Employees may contribute to these plans and the Company will match these contributions in varying amounts. The Company's matching contribution to the defined contribution plans are based on specified percentages of employee contributions. Beginning in 2014, the Company took the following actions as it relates to the US defined contribution plan: • Increased its employer match for those employees participating in the US defined contribution plan; • Added an annual retirement contribution for US employees who are employed as of December 31st each year (or have died during that year), regardless of whether the employee contributes to the US defined contribution plan; and • For certain eligible US employees, provides an incremental retirement contribution through 2017, based on years of service and specified percentages of eligible compensation. The amount of costs recognized for the Company's defined contribution plans are as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) Defined contribution plans 44 40 19 Summarized information on the Company's pension and postretirement benefit plans is as follows: Pension Benefits Postretirement Benefits 2015 2014 2015 2014 (In $ millions) Change in Projected Benefit Obligation Projected benefit obligation as of beginning of period 3,915 3,799 85 136 Service cost 12 11 1 1 Interest cost 139 168 3 4 Participant contributions — — 1 5 Plan amendments — (1 ) (6 ) (5 ) Net actuarial (gain) loss (1) (141 ) 458 (8 ) 11 Settlements — (221 ) — — Benefits paid (234 ) (232 ) (5 ) (61 ) Federal subsidy on Medicare Part D — — — (2 ) Curtailments (1 ) — — — Special termination benefits 2 — — — Exchange rate changes (65 ) (68 ) (5 ) (4 ) Other 8 1 — — Projected benefit obligation as of end of period 3,635 3,915 66 85 Change in Plan Assets Fair value of plan assets as of beginning of period 2,789 2,709 — — Actual return on plan assets (67 ) 327 — — Employer contributions 59 165 4 56 Participant contributions — — 1 5 Settlements — (143 ) — — Benefits paid (2) (234 ) (232 ) (5 ) (61 ) Exchange rate changes (39 ) (37 ) — — Fair value of plan assets as of end of period 2,508 2,789 — — Funded status as of end of period (1,127 ) (1,126 ) (66 ) (85 ) Amounts Recognized in the Consolidated Balance Sheets Consist of: Noncurrent Other assets 16 16 — — Current Other liabilities (25 ) (23 ) (4 ) (5 ) Benefit obligations (1,118 ) (1,119 ) (62 ) (80 ) Net amount recognized (1,127 ) (1,126 ) (66 ) (85 ) Amounts Recognized in Accumulated Other Comprehensive Income Consist of: Net actuarial (gain) loss (3) 16 16 — — Prior service (benefit) cost (1 ) (4 ) (4 ) 3 Net amount recognized (4) 15 12 (4 ) 3 ______________________________ (1) Primarily relates to change in discount rates. (2) Includes benefit payments to nonqualified pension plans of $22 million and $22 million as of December 31, 2015 and 2014 , respectively. (3) Relates to the pension plans of the Company's equity method investments. (4) Amount shown net of an income tax benefit of $3 million and $4 million as of December 31, 2015 and 2014 , respectively, in the consolidated statements of equity ( Note 17 ). The percentage of US and international projected benefit obligation at the end of the period is as follows: Pension Benefits Postretirement Benefits 2015 2014 2015 2014 (In percentages) US plans 86 85 61 59 International plans 14 15 39 41 Total 100 100 100 100 The percentage of US and international fair value of plan assets at the end of the period is as follows: Pension Benefits 2015 2014 (In percentages) US plans 87 88 International plans 13 12 Total 100 100 Pension plans with projected benefit obligations in excess of plan assets are as follows: As of December 31, 2015 2014 (In $ millions) Projected benefit obligation 3,588 3,866 Fair value of plan assets 2,445 2,724 Included in the above table are pension plans with accumulated benefit obligations in excess of plan assets as follows: As of December 31, 2015 2014 (In $ millions) Accumulated benefit obligation 3,570 3,833 Fair value of plan assets 2,442 2,713 The accumulated benefit obligation for all defined benefit pension plans is as follows: As of December 31, 2015 2014 (In $ millions) Accumulated benefit obligation 3,619 3,892 The components of net periodic benefit cost are as follows: Pension Benefits Postretirement Benefits 2015 2014 2013 2015 2014 2013 (In $ millions) Service cost 12 11 34 1 1 2 Interest cost 139 168 154 3 4 9 Expected return on plan assets (209 ) (214 ) (223 ) — — — Amortization of prior service cost / (credit) — — 1 — (83 ) (12 ) Recognized actuarial (gain) loss 134 (1) 339 (2) (67 ) (7 ) 11 (37 ) Curtailment (gain) loss (3 ) — (61 ) — — — Settlement (gain) loss — (78 ) 9 — — — Special termination benefit 2 — — — — — Total 75 226 (153 ) (3 ) (67 ) (38 ) ______________________________ (1) Includes a gain of $62 million reflecting the incorporation of the RP-2015 mortality tables into the actuarial assumptions for the US pension plans. (2) Includes a loss of $53 million reflecting the incorporation of the RP-2014 mortality tables into the actuarial assumptions for the US pension plans. Amortization of Accumulated other comprehensive income (loss), net into net periodic benefit cost in 2016 is expected to be as follows: Pension Benefits Postretirement Benefits (In $ millions) Prior service cost — (3 ) The Company maintains nonqualified pension plans funded with nonqualified trusts for certain US employees as follows: As of December 31, 2015 2014 (In $ millions) Nonqualified Trust Assets Marketable securities, at fair value 30 32 Noncurrent Other assets, consisting of insurance contracts 55 56 Nonqualified Pension Obligations Current Other liabilities 22 22 Benefit obligations 246 268 Expense relating to the nonqualified pension plans included in net periodic benefit cost, excluding returns on the assets held by the nonqualified trusts, is as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) Total — (1) 43 6 ______________________________ (1) Actuarial gain offset interest cost. Valuation The principal weighted average assumptions used to determine benefit obligation are as follows: Pension Benefits Postretirement Benefits 2015 2014 2015 2014 (In percentages) Discount Rate Obligations US plans 4.2 3.9 4.0 3.7 International plans 2.6 2.4 3.6 3.5 Combined 4.0 3.7 3.7 3.6 Rate of Compensation Increase US plans N/A N/A International plans 2.7 2.8 Combined 2.7 2.8 The principal weighted average assumptions used to determine net periodic benefit cost are as follows: Pension Benefits Postretirement Benefits 2015 2014 2013 2015 2014 2013 (In percentages) Discount Rate Obligations US plans 3.9 4.7 3.8 3.7 4.3 3.4 International plans 2.4 3.7 3.6 3.5 4.5 3.8 Combined 3.7 4.6 3.8 3.6 4.4 3.5 Expected Return on Plan Assets US plans 8.0 8.5 8.5 International plans 6.0 6.2 5.8 Combined 7.8 8.2 8.0 Rate of Compensation Increase US plans N/A 3.0 4.0 International plans 2.8 2.8 2.9 Combined 2.8 3.0 3.8 The Company's health care cost trend assumptions for US postretirement medical plan's net periodic benefit cost are as follows: As of December 31, 2015 2014 2013 (In percentages, except year) Health care cost trend rate assumed for next year 10.0 7.0 7.5 Health care cost trend ultimate rate 5.0 5.0 5.0 Health care cost trend ultimate rate year 2026 2020 2017 Assumed health care cost trend rates for US postretirement medical plans have a significant effect on the amounts reported for the health care plans. The impact of a one percentage point change in the assumed health care cost trend is as follows: Trend Rate Change Decreases 1% Increases 1% (In $ millions) Postretirement obligations 2 2 Service and interest cost — — Plan Assets The weighted average target asset allocations for the Company's pension plans in 2015 are as follows: US Plans International Plans (In percentages) Bonds - domestic to plans 54 71 Equities - domestic to plans 26 19 Equities - international to plans 20 3 Other — 7 Total 100 100 On average, the actual return on the US qualified defined pension plans' assets over the long-term (20 years) has exceeded the expected long-term rate of asset return assumption. The US qualified defined benefit plans' actual return on assets for the year ended December 31, 2015 was 2.5% loss versus an expected long-term rate of asset return assumption of 8.0% . The expected long-term rate of asset return assumption used to determine 2016 net periodic benefit cost is 7.5% for the US qualified defined benefit plans primarily due to an increase in Pension Benefit Guaranty Corporation premiums. The Company's defined benefit plan assets are measured at fair value on a recurring basis ( Note 2 ) as follows: Cash and Cash Equivalents: Foreign and domestic currencies as well as short term securities are valued at cost plus accrued interest, which approximates fair value. Equity securities, treasuries and corporate debt: Valued at the closing price reported on the active market in which the individual securities are traded. Automated quotes are provided by multiple pricing services and validated by the plan custodian. These securities are traded on exchanges as well as in the over the counter market. Registered Investment Companies: Composed of various mutual funds and other investment companies whose diversified portfolio is comprised of foreign and domestic equities, fixed income securities, and short term investments. Investments are valued at the net asset value of units held by the plan at year-end. Common/Collective Trusts: Composed of various funds whose diversified portfolio is comprised of foreign and domestic equities, fixed income securities, and short term investments. Investments are valued at the net asset value of units held by the plan at year-end. Derivatives: Derivative financial instruments are valued in the market using discounted cash flow techniques. These techniques incorporate Level 1 and Level 2 fair value measurement inputs such as interest rates and foreign currency exchange rates. These market inputs are utilized in the discounted cash flow calculation considering the instrument's term, notional amount, discount rate and credit risk. Significant inputs to the derivative valuation for interest rate swaps, foreign currency forwards and swaps, and options are observable in the active markets and are classified as Level 2 in the fair value measurement hierarchy. Mortgage backed securities: Fair value is estimated based on valuations obtained from third-party pricing services for identical or comparable assets. Mortgage Backed Securities are traded in the over the counter broker/dealer market. Insurance contracts: Valued at contributions made, plus earnings, less participant withdrawals and administrative expenses, which approximates fair value. Short-term investment funds: Composed of various funds whose portfolio is comprised of foreign and domestic currencies as well as short-term securities. Investments are valued at the net asset value of units held by the plan at year-end. Other: Composed of real estate investment trust common stock valued at closing price as reported on the active market in which the individual securities are traded. Fair Value Measurement Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Total As of December 31, 2015 2014 2015 2014 2015 2014 (In $ millions) Assets Cash and cash equivalents 4 6 — — 4 6 Derivatives Swaps — — 25 275 25 275 Other — — — 2 — 2 Equity securities US companies 241 249 — — 241 249 International companies 327 383 — — 327 383 Fixed income Corporate debt — — 692 639 692 639 Treasuries, other debt 25 49 742 708 767 757 Mortgage backed securities — — 5 31 5 31 Securities lending collateral — 6 — — — 6 Insurance contracts — — 32 34 32 34 Other 18 16 — 2 18 18 Total investments, at fair value (1) 615 709 1,496 1,691 2,111 2,400 Liabilities Derivatives Swaps — — 25 270 25 270 Other — — — 2 — 2 Obligations under securities lending — 6 — — — 6 Total liabilities — 6 25 272 25 278 Total net assets (2) 615 703 1,471 1,419 2,086 2,122 ______________________________ (1) In accordance with ASU 2015-07 ( Note 2 ), certain investments that are measured at fair value using the NAV per share practical expedient have not been classified in the fair value hierarchy. Total investments, at fair value, for the year ended December 31, 2015 excludes investments in common/collective trusts, registered investment companies and short-term investment funds with fair values of $251 million , $117 million and $43 million , respectively. Total investments, at fair value, for the year ended December 31, 2014 excludes investments in common/collective trusts, registered investment companies and short-term investment funds with fair values of $278 million , $133 million and $263 million , respectively. (2) Total net assets excludes non-financial plan receivables and payables of $25 million and $14 million , respectively, as of December 31, 2015 and $19 million and $26 million , respectively, as of December 31, 2014 . Non-financial items include due to/from broker, interest receivables and accrued expenses. Benefit obligation funding is as follows: Total Expected 2016 (In $ millions) Cash contributions to defined benefit pension plans 23 Benefit payments to nonqualified pension plans 22 Benefit payments to other postretirement benefit plans 5 The Company's estimates of its US defined benefit pension plan contributions reflect the provisions of the Pension Protection Act of 2006. Pension benefits and postretirement benefit cost expected to be paid are as follows: Pension Benefit Payments (1) Company Portion of Postretirement Benefit Cost (2) (In $ millions) 2016 231 5 2017 230 5 2018 229 5 2019 228 4 2020 227 4 2021-2025 1,111 21 ______________________________ (1) Payments are expected to be made primarily from plan assets. (2) Payments are expected to be made primarily from Company assets. |
Environmental
Environmental | 12 Months Ended |
Dec. 31, 2015 | |
Environmental Remediation Obligations [Abstract] | |
Environmental | Environmental The Company is subject to environmental laws and regulations worldwide that impose limitations on the discharge of pollutants into the air and water and establish standards for the treatment, storage and disposal of solid and hazardous wastes. The Company believes that it is in substantial compliance with all applicable environmental laws and regulations. The Company is also subject to retained environmental obligations specified in various contractual agreements arising from the divestiture of certain businesses by the Company or one of its predecessor companies. The components of environmental remediation reserves are as follows: As of December 31, 2015 2014 (In $ millions) Demerger obligations ( Note 24 ) 22 25 Divestiture obligations ( Note 24 ) 17 21 Active sites 18 23 US Superfund sites 13 12 Other environmental remediation reserves 2 3 Total 72 84 Remediation Due to its industrial history and through retained contractual and legal obligations, the Company has the obligation to remediate specific areas on its own sites as well as on divested, demerger, orphan or US Superfund sites (as defined below). In addition, as part of the demerger agreement between the Company and Hoechst AG ("Hoechst"), a specified portion of the responsibility for environmental liabilities from a number of Hoechst divestitures was transferred to the Company ( Note 24 ). The Company provides for such obligations when the event of loss is probable and reasonably estimable. The Company believes that environmental remediation costs will not have a material adverse effect on the financial position of the Company, but may have a material adverse effect on the results of operations or cash flows in any given period. The Company did not record any insurance recoveries during 2015 or have any receivables for insurance recoveries related to these matters as of December 31, 2015 . As of December 31, 2015 and 2014 , there were receivables of $4 million and $4 million , respectively, from the former owner of the Company's Spondon, Derby, United Kingdom acetate flake, tow and film business, which was acquired in 2007. German InfraServ Entities The Company's InfraServ Entities ( Note 9 ) are liable for any residual contamination and other pollution because they own the real estate on which the individual facilities operate. In addition, Hoechst, and its legal successors, as the responsible party under German public law, is liable to third parties for all environmental damage that occurred while it was still the owner of the plants and real estate ( Note 24 ). The contribution agreements entered into in 1997 between Hoechst and the respective operating companies, as part of the divestiture of these companies, provide that the operating companies will indemnify Hoechst, and its legal successors, against environmental liabilities resulting from the transferred businesses. Additionally, the InfraServ Entities have agreed to indemnify Hoechst, and its legal successors, against any environmental liability arising out of or in connection with environmental pollution of any site. The InfraServ partnership agreements provide that, as between the partners, each partner is responsible for any contamination caused predominantly by such partner. Any liability, which cannot be attributed to an InfraServ partner and for which no third party is responsible, is required to be borne by the InfraServ partnership. Also, under lease agreements entered into by an InfraServ partner as landlord, the tenants agreed to pay certain remediation costs on a pro rata basis. If an InfraServ partner defaults on its respective indemnification obligations to eliminate residual contamination, the owners of the remaining participation in the InfraServ companies have agreed to fund such liabilities, subject to a number of limitations. To the extent that any liabilities are not satisfied by either the InfraServ Entities or their owners, these liabilities are to be borne by the Company in accordance with the demerger agreement. However, Hoechst, and its legal successors, will reimburse the Company for two-thirds of any such costs. Likewise, in certain circumstances the Company could be responsible for the elimination of residual contamination on several sites that were not transferred to InfraServ companies, in which case Hoechst, and its legal successors, must also reimburse the Company for two-thirds of any costs so incurred. The Company's ownership interest and environmental liability participation percentages for such liabilities, which cannot be attributed to an InfraServ partner are as follows: As of December 31, 2015 Ownership Liability Reserves (1) (In percentages) (In $ millions) InfraServ GmbH & Co. Gendorf KG 39 10 10 InfraServ GmbH & Co. Hoechst KG 32 40 64 InfraServ GmbH & Co. Knapsack KG 27 22 1 ______________________________ (1) Gross reserves maintained by the respective InfraServ entity. US Superfund Sites In the US, the Company may be subject to substantial claims brought by US federal or state regulatory agencies or private individuals pursuant to statutory authority or common law. In particular, the Company has a potential liability under the US Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, and related state laws (collectively referred to as "Superfund") for investigation and cleanup costs at certain sites. At most of these sites, numerous companies, including the Company, or one of its predecessor companies, have been notified that the US Environmental Protection Agency ("EPA"), state governing bodies or private individuals consider such companies to be potentially responsible parties ("PRP") under Superfund or related laws. The proceedings relating to these sites are in various stages. The cleanup process has not been completed at most sites, and the status of the insurance coverage for some of these proceedings is uncertain. Consequently, the Company cannot accurately determine its ultimate liability for investigation or cleanup costs at these sites. As events progress at each site for which it has been named a PRP, the Company accrues, as appropriate, a liability for site cleanup. Such liabilities include all costs that are probable and can be reasonably estimated. In establishing these liabilities, the Company considers its shipment of waste to a site, its percentage of total waste shipped to the site, the types of wastes involved, the conclusions of any studies, the magnitude of any remedial actions that may be necessary and the number and viability of other PRPs. Often the Company joins with other PRPs to sign joint defense agreements that settle, among PRPs, each party's percentage allocation of costs at the site. Although the ultimate liability may differ from the estimate, the Company routinely reviews the liabilities and revises the estimate, as appropriate, based on the most current information available. One such site is the Lower Passaic River Study Area, which is the lower 17-mile stretch of the Passaic River ("Site"). The Company and 70 other companies are parties to a May 2007 Administrative Order on Consent with the EPA to perform a Remedial Investigation/Feasibility Study ("RI/FS") at the Site in order to identify the levels of contaminants and potential cleanup actions. The parties submitted draft documents with respect to the RI/FS to the EPA in 2014 and 2015 and seek to finalize such documents by the end of 2017. Cost estimates for the various alternatives at the Site range from $365 million to $3.2 billion . In April 2014, the EPA issued its proposed, independent evaluation of remediation alternatives for a portion of the Site. The EPA's preferred plan for this portion of the Site would involve dredging bank to bank and installing an engineered cap at an estimated cost of $1.7 billion . The parties involved have submitted comments to the EPA challenging the science, scope, necessity and viability of the EPA's proposed plan as the EPA's preferred remedy for this portion of the Site is inconsistent with the remedy being developed in the RI/FS for the full Site. The EPA will evaluate all the inputs and is expected to issue a final decision concerning this portion of the Site in 2016. Any subsequent order from the EPA requiring clean-up actions could be judicially challenged. While the final remedy remains uncertain, the Company has found no evidence that it contributed any of the primary contaminants of concern to the Passaic River. The Company is vigorously defending this matter and currently believes that its ultimate allocable share of the cleanup costs, estimated at substantially less than 1% , will not be material. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common Stock The Company's Board of Directors follows a policy of declaring, subject to legally available funds, a quarterly cash dividend on each share of the Company's Common Stock, unless the Company's Board of Directors, in its sole discretion, determines otherwise. The amount available to pay cash dividends is restricted by the Company's Amended Credit Agreement and the Indentures. The Company's Board of Directors approved increases in the Company's Common Stock cash dividend rates as follows: Increase Quarterly Common Stock Cash Dividend Annual Common Stock Cash Dividend Effective Date (In percentages) (In $ per share) April 2013 20 0.090 0.36 May 2013 July 2013 100 0.180 0.72 August 2013 April 2014 39 0.250 1.00 May 2014 April 2015 20 0.300 1.20 May 2015 On February 4, 2016 , the Company declared a quarterly cash dividend of $0.30 per share on its Common Stock amounting to $44 million . The cash dividend is for the period from November 1, 2015 to January 31, 2016 and will be paid on February 26, 2016 to holders of record as of February 16, 2016 . Treasury Stock The Company's Board of Directors authorizes repurchases of Common Stock from time to time. These authorizations give management discretion in determining the timing and conditions under which shares may be repurchased. This repurchase program does not have an expiration date. The share repurchase activity pursuant to this authorization is as follows: Year Ended December 31, Total From 2015 2014 2013 Shares repurchased 6,640,601 (1) 4,338,488 3,186,180 (1) 27,307,796 Average purchase price per share $ 63.31 $ 57.61 $ 51.38 $ 48.90 Amount spent on repurchased shares (in millions) $ 420 $ 250 $ 164 $ 1,335 Aggregate Board of Directors repurchase authorizations during the period (in millions) (2) $ 1,000 $ 473 $ — $ 2,366 ______________________________ (1) The years ended December 31, 2015 and 2013 exclude 9,264 and 6,021 shares, respectively, withheld from an executive officer to cover statutory minimum withholding requirements for personal income taxes related to the vesting of restricted stock. Restricted stock awards are considered outstanding at the time of issuance. Accordingly, the shares withheld are treated as treasury shares. (2) These authorizations give management discretion in determining the timing and conditions under which shares may be repurchased. This repurchase program began in February 2008 and does not have an expiration date. In September 2015 , the Board of Directors approved a new $1.0 billion share repurchase authorization. The purchase of treasury stock reduces the number of shares outstanding. The repurchased shares may be used by the Company for compensation programs utilizing the Company's stock and other corporate purposes. The Company accounts for treasury stock using the cost method and includes treasury stock as a component of stockholders' equity. Other Comprehensive Income (Loss), Net Year Ended December 31, 2015 2014 2013 Gross Amount Income Tax (Provision) Benefit Net Amount Gross Amount Income Tax (Provision) Benefit Net Amount Gross Amount Income Tax (Provision) Benefit Net Amount (In $ millions) Unrealized gain (loss) on marketable securities — — — — 1 1 1 — 1 Foreign currency translation (193 ) 5 (188 ) (188 ) 40 (148 ) 55 (35 ) 20 Gain (loss) on cash flow hedges 3 (1 ) 2 — 40 40 9 (3 ) 6 Pension and postretirement benefits 4 (1 ) 3 (84 ) 30 (54 ) 88 (30 ) 58 Total (186 ) 3 (183 ) (272 ) 111 (161 ) 153 (68 ) 85 Adjustments to Accumulated other comprehensive income (loss), net, are as follows: Unrealized Gain (Loss) on Marketable Securities ( Note 6 ) Foreign Currency Translation Gain (Loss) from Cash Flow Hedges ( Note 22 ) Pension and Postretirement Benefits ( Note 15 ) Accumulated Other Comprehensive Income (Loss), Net (In $ millions) As of December 31, 2012 (1 ) (23 ) (50 ) (15 ) (89 ) Other comprehensive income (loss) before reclassifications 1 55 (2 ) 99 153 Amounts reclassified from accumulated other comprehensive income (loss) — — 11 (11 ) — Income tax (provision) benefit — (35 ) (3 ) (30 ) (68 ) As of December 31, 2013 — (3 ) (44 ) 43 (4 ) Other comprehensive income (loss) before reclassifications — (188 ) (9 ) (1 ) (198 ) Amounts reclassified from accumulated other comprehensive income (loss) — — 9 (83 ) (74 ) Income tax (provision) benefit 1 40 40 30 111 As of December 31, 2014 1 (151 ) (4 ) (11 ) (165 ) Other comprehensive income (loss) before reclassifications — (193 ) (2 ) 6 (189 ) Amounts reclassified from accumulated other comprehensive income (loss) — — 5 (2 ) 3 Income tax (provision) benefit — 5 (1 ) (1 ) 3 As of December 31, 2015 1 (339 ) (2 ) (8 ) (348 ) |
Other (Charges) Gains, Net
Other (Charges) Gains, Net | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Other (Charges) Gains, Net | Other (Charges) Gains, Net Year Ended December 31, 2015 2014 2013 (In $ millions) Employee termination benefits ( Note 4 ) (53 ) (1) (7 ) (23 ) Kelsterbach plant relocation ( Note 4 ) — — (13 ) Asset impairments (126 ) — (81 ) Other plant/office closures — 2 (33 ) Singapore contract termination (174 ) — — Commercial disputes 2 11 (8 ) Other — 9 — Total (351 ) 15 (158 ) ______________________________ (1) Includes $1 million of special termination benefits included in Benefit obligations in the consolidated balance sheet as of December 31, 2015 and is included in the Company's Industrial Specialties segment. 2015 During the year ended December 31, 2015 , the Company recorded $21 million of employee termination benefits related to the Company's ongoing efforts to align its businesses around its core value drivers. In addition, the Company recorded $24 million of employee termination benefits related to a 50% capacity reduction at its Lanaken, Belgium acetate tow facility ( Note 4 ). In addition, during the year ended December 31, 2015 , the Company recorded $6 million of employee termination benefits and $1 million of long-lived asset impairment losses related to the closure of its VAE emulsions facility in Tarragona, Spain ( Note 4 ). In addition, the Company recorded $1 million of employee termination benefits and $1 million of long-lived asset impairment losses related to the closure of its VAE emulsions facility in Meredosia, Illinois ( Note 4 ). The long-lived asset impairment losses related to both VAE facilities were measured at the dates of impairment to write-off the related property, plant and equipment at each facility ( Note 2 and Note 4 ). During the three months ended December 31, 2015, the Company determined its ethanol production unit at its acetyl facility in Nanjing, China should be assessed for impairment based on market conditions affecting demand for ethanol and downstream products, the cost to operate the unit and contractual obligations. As a result, the Company concluded that certain long-lived ethanol related assets were fully impaired. Accordingly, the Company recorded long-lived impairment losses, measured at the date of impairment ( Note 2 ), of $123 million to fully write-off certain ethanol related assets. The Nanjing, China asset impairment is included in the Company's Acetyl Intermediates segment. In December 2015, the Company made a payment terminating an existing agreement with a raw materials supplier in Singapore and recognized a $174 million charge, which reflects a discounted amount previously owed under that contract. This termination payment was determined not to have future economic benefit, and the contract's original terms substantially contributed to cumulative losses which resulted in a full impairment of the production assets in 2013. This charge is recorded in Other (charges) gains net, which is included in the Company's Acetyl Intermediates segment. 2014 During the year ended December 31, 2014, the Company received consideration of $8 million in connection with the settlement of a claim against a bankrupt supplier. The Company also recorded $12 million of damages in connection with the settlement of a claim by a raw materials supplier. These commercial dispute resolutions are included in the Acetyl Intermediates segment. In addition, the Company recovered $15 million from an arbitration award against a former utility operator at its cellulose derivatives manufacturing facility in Narrows, Virginia, which is included in the Consumer Specialties segment. During the year ended December 31, 2014 the Company recorded $4 million of employee termination benefits related to the closure of its acetic anhydride facility in Roussillon, France and its vinyl acetate monomer ("VAM") facility in Tarragona, Spain. In addition, the Company recorded $2 million of contract termination adjustments related to the closure of its VAM facility in Tarragona, Spain. 2013 During the three months ended December 31, 2013, the Company recorded $6 million of employee termination benefits, $3 million of contract termination costs and $3 million of long-lived asset impairment losses related to the December 2013 closure of its acetic anhydride facility in Roussillon, France. In addition, the Company recorded $14 million of employee termination benefits, $30 million of contract termination costs and $31 million of long-lived asset impairment losses as a result of the December 2013 closure of its VAM facility in Tarragona, Spain. The long-lived asset impairment losses related to both the Company's Roussillon acetic anhydride facility and Tarragona VAM facility were measured at the dates of impairment to fully write-off the related property, plant and equipment at both facilities ( Note 2 ). During the three months ended December 31, 2013, the Company determined its Singapore acetic acid production unit should be assessed for impairment based on local market conditions affecting demand for acetic acid and downstream products, the cost to operate the unit, contractual obligations and an interim arbitration ruling. As a result, the Company concluded that the long-lived assets at its Singapore acetic acid production unit were fully impaired. Accordingly, the Company recorded long-lived asset impairment losses, measured at the date of impairment, of $46 million to fully write-off the related property, plant and equipment. The Singapore acetic acid operations are included in the Acetyl Intermediates segment ( Note 2 ). The changes in the restructuring reserves by business segment are as follows: Advanced Engineered Materials Consumer Specialties Industrial Specialties Acetyl Intermediates Other Total (In $ millions) Employee Termination Benefits As of December 31, 2013 4 3 2 16 4 29 Additions 1 1 1 4 — 7 Cash payments (1 ) (3 ) (2 ) (14 ) (1 ) (21 ) Other changes — — — — — — Exchange rate changes — — — (1 ) — (1 ) As of December 31, 2014 4 1 1 5 3 14 Additions 7 25 9 2 9 52 Cash payments (4 ) (12 ) (4 ) (5 ) (3 ) (28 ) Other changes (3 ) — — — (3 ) (6 ) Exchange rate changes (1 ) — — (1 ) — (2 ) As of December 31, 2015 3 14 6 1 6 30 Other Plant/Office Closures As of December 31, 2013 — — — 33 — 33 Additions — — — — — — Cash payments — — — (9 ) — (9 ) Other changes — — — (15 ) (1) — (15 ) Exchange rate changes — — — (2 ) — (2 ) As of December 31, 2014 — — — 7 — 7 Additions — — — — — — Cash payments — — — (6 ) — (6 ) Other changes — — — — — — Exchange rate changes — — — (1 ) — (1 ) As of December 31, 2015 — — — — — — Total 3 14 6 1 6 30 ______________________________ (1) Includes a $13 million non-cash reduction to take-or-pay contract termination penalties. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income Tax Provision Earnings (loss) from continuing operations before tax by jurisdiction are as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) US 231 534 806 International (1) 257 407 803 Total 488 941 1,609 ______________________________ (1) Includes aggregate earnings generated by operations in Bermuda, Luxembourg, the Netherlands and Hong Kong of $330 million , $308 million and $275 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, which have an aggregate effective income tax rate of 6.1% , 4.8% and 4.0% for each year, respectively. The income tax provision (benefit) consists of the following: Year Ended December 31, 2015 2014 2013 (In $ millions) Current US 28 108 78 International 152 56 83 Total 180 164 161 Deferred US 54 156 194 International (33 ) (6 ) 153 Total 21 150 347 Total 201 314 508 A reconciliation of the significant differences between the US federal statutory tax rate of 35% and the effective income tax rate on income from continuing operations is as follows: Year Ended December 31, 2015 2014 2013 (In $ millions, except percentages) Income tax provision computed at US federal statutory tax rate 171 329 563 Change in valuation allowance 124 49 89 Equity income and dividends (33 ) (50 ) (44 ) (Income) expense not resulting in tax impact, net (32 ) (34 ) (33 ) US tax effect of foreign earnings and dividends 15 49 35 Foreign tax credits (4 ) (34 ) (38 ) Other foreign tax rate differentials (41 ) (33 ) (55 ) Legislative changes — — (19 ) Tax-deductible interest on foreign equity investments and other related items — 12 11 State income taxes, net of federal benefit 6 9 11 Other, net (5 ) 17 (12 ) Income tax provision (benefit) 201 314 508 Effective income tax rate 41 % 33 % 32 % Federal and state income taxes have not been provided on accumulated but undistributed earnings of $3.9 billion as of December 31, 2015 as such earnings have been permanently reinvested in the business or may be remitted substantially free of incremental US federal tax liability. The determination of the amount of the unrecognized deferred tax liability related to the undistributed earnings is not practicable. The higher effective tax rate for the year ended December 31, 2015 is primarily attributable to an increase in the valuation allowance due to an increase in losses in jurisdictions with no tax benefit. The increase in losses primarily relates to a $123 million long-lived asset impairment recorded to fully write-off certain ethanol related assets at the Company's acetyl facility in Nanjing, China and a $174 million charge related to the termination of a raw materials contract with a supplier in Singapore ( Note 18 ). The tax impact of these events was partially offset by decreases in uncertain tax positions of $29 million due to audit closures and technical jurisdictional clarifications. The effective tax rate was comparable for the years ended December 31, 2014 and 2013. In February 2015, the Company established a centralized European headquarters for the purpose of improving the operational efficiencies and profitability of its European operations and certain global product lines. These activities directly impacted the Company's mix of earnings and product flows and resulted in both favorable and unfavorable tax rate impacts in the jurisdictions in which the Company operates. These impacts have been reflected in Other foreign tax rate differentials included in the reconciliation of the significant differences between the US federal statutory tax rate and the effective income tax rate. Deferred Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the consolidated deferred tax assets and liabilities are as follows: As of December 31, 2015 2014 (In $ millions) Deferred Tax Assets Pension and postretirement obligations 434 424 Accrued expenses 40 41 Inventory 14 10 Net operating loss 683 468 Tax credit carryforwards 88 100 Other 202 165 Subtotal 1,461 1,208 Valuation allowance (1) (448 ) (413 ) Total 1,013 795 Deferred Tax Liabilities Depreciation and amortization 380 416 Investments in affiliates 395 143 Other 114 102 Total 889 661 Net deferred tax assets (liabilities) 124 134 ______________________________ (1) Includes deferred tax asset valuation allowances for the Company's deferred tax assets in the US, Luxembourg, Spain, China, Singapore, the United Kingdom, Canada and France . These valuation allowances relate primarily to net operating loss carryforward benefits and other net deferred tax assets, all of which may not be realizable. For the year ended December 31, 2015 , the valuation allowance increased by $35 million primarily due to $124 million of losses generated with no currently realizable income tax benefit, primarily associated with the long-lived asset impairment recorded to fully write-off certain ethanol assets at the Company's acetyl facility in Nanjing, China and the termination of a raw materials contract with a supplier in Singapore ( Note 18 ), partially offset by $22 million related to exchange rate changes and net operating loss expirations and utilization of previously unbenefited loss carryforwards of $67 million . Legislative Changes In October 2013, the Mexican National Congress passed new tax legislation. Among other things, the new legislation maintains a corporate tax rate of 30% , eliminates the tax consolidation rules and repeals the business flat tax ("IETU") for years beginning after December 31, 2013 . The Company was subject to the IETU in 2013 and for prior periods and is now required to record deferred income taxes on an income tax basis. As a result, the Company realized a deferred income tax benefit of $46 million for the year ended December 31, 2013 . The Company has historically filed consolidated income tax returns in Mexico. Under the new tax legislation, the Company was required to recapture previously deferred income taxes related to income tax loss carryforwards, intercompany dividends and differences between consolidated and individual company taxable earnings. The Company recorded additional tax expense of $27 million related to these new rules for the year ended December 31, 2013 , resulting in a net income tax benefit of $19 million . Net Operating Loss Carryforwards As of December 31, 2015 , the Company has US federal net operating loss carryforwards of $26 million that are subject to limitation. These net operating loss carryforwards begin to expire in 2021 . At December 31, 2015 , the Company also had state net operating loss carryforwards, net of federal tax impact, of $47 million , $46 million of which are offset by a valuation allowance due to uncertain recoverability. The Company also has foreign net operating loss carryforwards as of December 31, 2015 of $2.3 billion primarily for Luxembourg, Spain, Canada, China, Singapore and the United Kingdom, with various expiration dates. Net operating losses in China have various carryforward periods and began to expire in 2011 . Net operating losses in most other foreign jurisdictions do not have an expiration date. Uncertain Tax Positions Activity related to uncertain tax positions is as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) As of the beginning of the year 228 244 218 Increases in tax positions for the current year 13 7 3 Increases in tax positions for prior years 76 24 57 Decreases in tax positions for prior years (126 ) (46 ) (32 ) Decreases due to settlements (33 ) (1 ) (2 ) As of the end of the year 158 228 244 Total uncertain tax positions that if recognized would impact the effective tax rate 144 245 258 Total amount of interest expense (benefit) and penalties recognized in the consolidated statements of operations (12 ) (1) 2 12 Total amount of interest expense and penalties recognized in the consolidated balance sheets 43 67 65 ______________________________ (1) This amount reflects interest on uncertain tax positions, the impact of currency and release of certain tax positions as a result of audit closure that was reflected in the consolidated statements of operations. In addition, the Company also paid an additional $12 million of previously accrued amounts due to settlements of tax examinations. The Company primarily operates in the US, Germany, Belgium, Canada, China, Mexico and Singapore. Examinations are ongoing in a number of these jurisdictions, including Germany for the years 2005 to 2012 and the US for the years 2009 through 2012. The Company's US federal income tax returns for 2004 and forward are open for examination under statute. The Company's German corporate tax returns for 2005 and forward are open for examination under statute. In addition, certain statutes of limitations are scheduled to expire in the near future. The decrease in uncertain tax positions for the year-ended December 31, 2015 is primarily due to audit closures and technical judicial clarifications. It is reasonably possible that a further change in the unrecognized tax benefits may occur within the next twelve months related to the settlement of one or more of these audits. Amounts immediately determinable have been reflected in the current portion of uncertain tax positions. In December 2013, the French Tax Authority ("FTA") issued audit assessment claims against the Company that could result in incremental tax expense of €81 million , including interest and penalties. The assessment suggests that for the years 2008 to 2010, the Company transferred value from its otherwise profitable facility in Pardies, France to subsidize other global manufacturing operations outside of France. During the three months ended June 30, 2014, the Company completed a settlement of the examination with the FTA. As a result of the settlement, the Company utilized €141 million of previously unbenefited net operating loss carryforwards. The settlement did not result in any material additional cash tax liability. |
Management Compensation Plans
Management Compensation Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Management Compensation Plans | Management Compensation Plans General Plan Description The Company issues stock-based awards under its 2009 GIP, which enables the compensation committee of the Board of Directors to award incentive and nonqualified stock options, stock appreciation rights, shares of Common Stock, restricted stock awards, restricted stock units ("RSUs") and incentive bonuses (which may be paid in cash or stock or a combination thereof), any of which may be performance-based, with vesting and other award provisions that provide effective incentive to Company employees (including officers), non-management directors and other service providers. Total shares available for awards and total shares subject to outstanding awards are as follows: As of December 31, 2015 Shares Available for Awards Shares Subject to Outstanding Awards 2009 GIP 6,949,926 2,736,369 2004 Stock Incentive Plan — 94,500 (1) ______________________________ (1) No RSUs remain outstanding under the 2004 Stock Incentive Plan. The Company realized income tax benefits from stock option exercises and RSU vestings as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) Income tax benefit realized 2 2 2 Amount reversed in current year related to prior year — — — Stock Options The summary of changes in stock options outstanding is as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (In thousands) (In $) (In years) (In $ millions) As of December 31, 2014 343 33.72 3.2 7 Granted — — Exercised (94 ) 29.82 Forfeited — — Expired — — As of December 31, 2015 249 35.19 2.4 9 Options exercisable at end of year 239 34.74 2.3 9 The weighted average assumptions used in the Black-Scholes option pricing method for stock option grants are as follows: Year Ended December 31, 2015 2014 2013 Risk-free interest rate N/A N/A 0.68 % Estimated life in years N/A N/A 4.50 Dividend yield N/A N/A 0.64 % Volatility N/A N/A 49.50 % The weighted average grant date fair value of stock options granted is as follows: Year Ended December 31, 2015 2014 2013 (In $) Total N/A N/A 18.50 The total intrinsic value of stock options exercised is as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) Intrinsic value 4 7 6 Restricted Stock Units A summary of changes in nonvested performance-based RSUs outstanding is as follows: Number of Units Weighted Average Grant Date Fair Value (In thousands) (In $) As of December 31, 2014 1,027 48.02 Granted 514 53.13 Additional performance-based RSUs granted (1) 253 47.32 Vested (506 ) 47.32 Canceled — — Forfeited (57 ) 49.12 As of December 31, 2015 1,231 50.24 ______________________________ (1) Represents additional performance-based RSU grants in 2013 that were awarded in 2015 as a result of achieving internal profitability targets. The fair value of shares vested for performance-based RSUs is as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) Total 27 — 10 A summary of changes in nonvested time-based RSUs outstanding is as follows: Employee Time-Based RSUs Director Time-Based RSUs Number of Units Weighted Average Grant Date Fair Value Number of Units Weighted Average Grant Date Fair Value (In thousands) (In $) (In thousands) (In $) As of December 31, 2014 112 45.87 19 58.48 Granted 75 63.67 14 64.94 Vested (81 ) 43.10 (19 ) 58.48 Forfeited (1 ) 48.15 — — As of December 31, 2015 105 60.78 14 64.94 The fair value of shares vested for time-based RSUs is as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) Total 6 9 12 As of December 31, 2015 , there was $22 million of unrecognized compensation cost related to RSUs, excluding actual forfeitures, which is expected to be recognized over a weighted average period of one year. Employee Stock Purchase Plan Beginning January 1, 2015, eligible US employees can purchase shares of the Company's Common Stock under the 2009 Employee Stock Purchase Plan approved by stockholders on April 23, 2009 ("ESPP"). As of December 31, 2015 , 55,240 shares of Common Stock have been offered for purchase under the ESPP. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Leases | Leases Future minimum lease payments under non-cancelable rental and lease agreements, which have initial or remaining terms in excess of one year are as follows: As of December 31, 2015 Capital Leases (In $ millions) 2016 46 2017 46 2018 45 2019 45 2020 45 Later years 195 Sublease income — Minimum lease commitments 422 Less amounts representing interest (184 ) Present value of net minimum lease obligations 238 As of December 31, 2015 Operating Leases (In $ millions) 2016 66 2017 43 2018 34 2019 31 2020 23 Later years 97 Sublease income (3 ) Minimum lease commitments 291 The Company expects that, in the normal course of business, leases that expire will be renewed or replaced by other leases. Rent expense recorded under all operating leases is as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) Total 154 161 160 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Interest Rate Swaps The Company fixes the LIBOR portion of its US dollar denominated variable rate borrowings ( Note 14 ) with interest rate swap derivative arrangements as follows: As of December 31, 2015 Notional Value Effective Date Expiration Date Fixed Rate (In $ millions) (In percentages) 500 January 2, 2014 January 2, 2016 0.94 As of December 31, 2014 Notional Value Effective Date Expiration Date Fixed Rate (In $ millions) (In percentages) 500 January 2, 2014 January 2, 2016 1.02 Cross-currency Swaps In March 2015, the Company settled its cross-currency swap agreements with notional values of $250 million / €193 million , expiring on September 11, 2020 , and $225 million / €162 million , expiring on April 17, 2019 , in exchange for cash of $88 million . The Company recorded a net loss of $1 million , which is included in Other income (expense), net in the consolidated statement of operations. The Company classifies cash flows from derivative instruments designated as cash flow hedges in the same category of the consolidated statement of cash flows as the cash flows from the items being hedged. Accordingly, the settlement of the cross-currency swap agreements is included in Net cash provided by (used in) operating activities in the consolidated statement of cash flows for the year ended December 31, 2015 . Foreign Currency Forwards and Swaps Each of the contracts included in the table below will have approximately offsetting effects from actual underlying payables, receivables, intercompany loans or other assets or liabilities subject to foreign exchange remeasurement. The total US dollar equivalents of net foreign exchange exposure related to (short) long foreign exchange forward contracts outstanding by currency are as follows: 2016 Maturity (In $ millions) Currency Brazilian real (10 ) British pound sterling (88 ) Canadian dollar 25 Euro 127 Hungarian forint 8 Korean won 9 Mexican peso (31 ) Singapore dollar 22 Swedish krona 8 Total 70 Gross notional values of the foreign currency forwards and swaps are as follows: As of December 31, 2015 2014 (In $ millions) Total 502 1,336 Hedging activity for interest rate swaps and cross-currency swaps is as follows: Year Ended December 31, Statement of Operations Classification 2015 2014 2013 (In $ millions) Hedging activities 2 (4 ) (11 ) Interest income (expense) Ineffective portion of hedging activities — — — Other income (expense), net Information regarding changes in the fair value of the Company's derivative and non-derivative instruments is as follows: Gain (Loss) Recognized in Other Comprehensive Income (Loss) Gain (Loss) Recognized in Earnings (Loss) Statement of Operations Classification Year Ended December 31, Year Ended December 31, 2015 2014 2013 2015 2014 2013 (In $ millions) Designated as Cash Flow Hedges Interest rate swaps — (1 ) (2 ) — (4 ) (11 ) Interest expense Cross-currency swaps — (8 ) — 46 46 — Other income (expense), net or Interest expense Total — (9 ) (2 ) 46 42 (11 ) Designated as a Net Investment Hedge 3.250% Notes 38 23 — — — — Foreign currency translation Term C-2 and Term C-3 loans (2) 10 — — — — — Foreign currency translation Total 48 23 — — — — Not Designated as Hedges Interest rate swaps — — — (1 ) (3 ) (1) — Interest expense Foreign currency forwards and swaps — — — (82 ) (15 ) (23 ) Foreign exchange gain (loss), net or Other income (expense), net Total — — — (83 ) (18 ) (23 ) ______________________________ (1) In December 2014, the Company dedesignated as cash flow hedges a notional value of $500 million US dollar interest rate swap agreements expiring January 2, 2016 . (2) During the three months ended March 31, 2015, the Company designated the Euro-based principal amount of its Term C-2 loan and its Term C-3 loan as a net investment hedge of its investment in a wholly-owned international subsidiary whose functional currency is the Euro to mitigate the volatility caused by the changes in foreign currency exchange rates of the Euro with respect to the US dollar. During the three months ended December 31, 2015 , the Company dedesignated the Euro-based principal amount of its Term C-3 loan as a net investment hedge. See Note 23 - Fair Value Measurements for additional information regarding the fair value of the Company's derivative agreements. Certain of the Company's foreign currency forwards and swaps and interest rate swaps permit the Company to net settle all contracts with the counterparty through a single payment in an agreed upon currency in the event of default or early termination of the contract, similar to a master netting arrangement. The Company's interest rate swap agreements are subject to cross collateralization under the Guarantee and Collateral Agreement entered into in conjunction with the Term loan borrowings ( Note 14 ). Information regarding the gross amounts of the Company's derivative instruments and the amounts offset in the consolidated balance sheets is as follows: As of December 31, 2015 2014 (In $ millions) Derivative Assets Gross amount recognized 2 55 Gross amount offset in the consolidated balance sheets — — Net amount presented in the consolidated balance sheets 2 55 Gross amount not offset in the consolidated balance sheets — 4 Net amount 2 51 As of December 31, 2015 2014 (In $ millions) Derivative Liabilities Gross amount recognized 2 23 Gross amount offset in the consolidated balance sheets — — Net amount presented in the consolidated balance sheets 2 23 Gross amount not offset in the consolidated balance sheets — 4 Net amount 2 19 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company's financial assets and liabilities are measured at fair value on a recurring basis ( Note 2 ) as follows: Derivatives. Derivative financial instruments include interest rate swaps, cross-currency swaps and foreign currency forwards and swaps and are valued in the market using discounted cash flow techniques. These techniques incorporate Level 1 and Level 2 fair value measurement inputs such as interest rates and foreign currency exchange rates. These market inputs are utilized in the discounted cash flow calculation considering the instrument's term, notional amount, discount rate and credit risk. Significant inputs to the derivative valuation for interest rate swaps, cross-currency swaps and foreign currency forwards and swaps are observable in the active markets and are classified as Level 2 in the fair value measurement hierarchy. Fair Value Measurement Balance Sheet Classification Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Total As of December 31, 2015 2014 2015 2014 2015 2014 (In $ millions) Derivatives Designated as Cash Flow Hedges Cross-currency swaps — — — 9 — 9 Current Other assets Cross-currency swaps — — — 43 — 43 Noncurrent Other assets Derivatives Not Designated as Hedges Foreign currency forwards and swaps — — 2 3 2 3 Current Other assets Total assets — — 2 55 2 55 Derivatives Designated as Cash Flow Hedges Cross-currency swaps — — — (2 ) — (2 ) Current Other liabilities Cross-currency swaps — — — (10 ) — (10 ) Noncurrent Other liabilities Designated as a Net Investment Hedge 3.250% Notes (1) — — — — — — Long-term Debt Term C-2 and Term C-3 loans (1) — — — — — — Long-term Debt Derivatives Not Designated as Hedges Interest rate swaps — — — (4 ) — (4 ) Current Other liabilities Foreign currency forwards and swaps — — (2 ) (7 ) (2 ) (7 ) Current Other liabilities Total liabilities — — (2 ) (23 ) (2 ) (23 ) ______________________________ (1) Included in the consolidated balance sheets at carrying amount. During the three months ended December 31, 2015 , the Company dedesignated the Euro-based principal amount of its Term C-3 loan as a net investment hedge. Carrying values and fair values of financial instruments that are not carried at fair value are as follows: Fair Value Measurement Carrying Amount Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total As of December 31, 2015 2014 2015 2014 2015 2014 2015 2014 (In $ millions) Cost investments 151 145 — — — — — — Insurance contracts in nonqualified trusts 55 56 55 56 — — 55 56 Long-term debt, including current installments of long-term debt 2,542 2,633 2,348 2,398 238 260 2,586 2,658 In general, the cost investments included in the table above are not publicly traded and their fair values are not readily determinable; however, the Company believes the carrying values approximate or are less than the fair values. Insurance contracts in nonqualified trusts consist of long-term fixed income securities, which are valued using independent vendor pricing models with observable inputs in the active market and therefore represent a Level 2 fair value measurement. The fair value of long-term debt is based on valuations from third-party banks and market quotations and is classified as Level 2 in the fair value measurement hierarchy. The fair value of obligations under capital leases, which are included in long-term debt, is based on lease payments and discount rates, which are not observable in the market and therefore represents a Level 3 fair value measurement. As of December 31, 2015 and 2014 , the fair values of cash and cash equivalents, receivables, trade payables, short-term borrowings and the current installments of long-term debt approximate carrying values due to the short-term nature of these instruments. These items have been excluded from the table with the exception of the current installments of long-term debt. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Guarantees The Company has agreed to guarantee or indemnify third parties for environmental and other liabilities pursuant to a variety of agreements, including asset and business divestiture agreements, leases, settlement agreements and various agreements with affiliated companies. Although many of these obligations contain monetary and/or time limitations, others do not provide such limitations. As indemnification obligations often depend on the occurrence of unpredictable future events, the future costs associated with them cannot be determined at this time. The Company has accrued for all probable and reasonably estimable losses associated with all known matters or claims that have been brought to its attention. These known obligations include the following: • Demerger Obligations In connection with the Hoechst demerger, the Company agreed to indemnify Hoechst, and its legal successors, for various liabilities under the demerger agreement, including for environmental liabilities associated with contamination arising either from environmental damage in general ("Category A") or under 19 divestiture agreements entered into by Hoechst prior to the demerger ("Category B") ( Note 16 ). The Company's obligation to indemnify Hoechst, and its legal successors, is capped under Category B at €250 million . If and to the extent the environmental damage should exceed €750 million in aggregate, the Company's obligation to indemnify Hoechst and its legal successors applies, but is then limited to 33.33% of the remediation cost without further limitations. Cumulative payments under the divestiture agreements as of December 31, 2015 are $71 million . Most of the divestiture agreements have become time barred and/or any notified environmental damage claims have been partially settled. The Company has also undertaken in the demerger agreement to indemnify Hoechst and its legal successors for (i) 33.33% of any and all Category A liabilities that result from Hoechst being held as the responsible party pursuant to public law or current or future environmental law or by third parties pursuant to private or public law related to contamination and (ii) liabilities that Hoechst is required to discharge, including tax liabilities, which are associated with businesses that were included in the demerger but were not demerged due to legal restrictions on the transfers of such items. These indemnities do not provide for any monetary or time limitations. The Company has not been requested by Hoechst to make any payments in connection with this indemnification. Accordingly, the Company has not made any payments to Hoechst and its legal successors. Based on the Company's evaluation of currently available information, including the lack of requests for indemnification, the Company cannot estimate the Possible Loss for the remaining demerger obligations, if any, in excess of amounts accrued. • Divestiture Obligations The Company and its predecessor companies agreed to indemnify third-party purchasers of former businesses and assets for various pre-closing conditions, as well as for breaches of representations, warranties and covenants. Such liabilities also include environmental liability, product liability, antitrust and other liabilities. These indemnifications and guarantees represent standard contractual terms associated with typical divestiture agreements and, other than environmental liabilities, the Company does not believe that they expose the Company to any significant risk ( Note 16 ). The Company has divested numerous businesses, investments and facilities through agreements containing indemnifications or guarantees to the purchasers. Many of the obligations contain monetary and/or time limitations, which extend through 2037 . The aggregate amount of outstanding indemnifications and guarantees provided for under these agreements is $202 million as of December 31, 2015 . Other agreements do not provide for any monetary or time limitations. Based on the Company's evaluation of currently available information, including the number of requests for indemnification or other payment received by the Company, the Company cannot estimate the Possible Loss for the remaining divestiture obligations, if any, in excess of amounts accrued. Purchase Obligations In the normal course of business, the Company enters into various purchase commitments for goods and services. The Company maintains a number of "take-or-pay" contracts for purchases of raw materials, utilities and other services. Certain of the contracts contain a contract termination buy-out provision that allows for the Company to exit the contracts for amounts less than the remaining take-or-pay obligations. The Company does not expect to incur any material losses under take-or-pay contractual arrangements. Additionally, the Company has other outstanding commitments representing maintenance and service agreements, energy and utility agreements, consulting contracts and software agreements. As of December 31, 2015 , the Company had unconditional purchase obligations of $3.0 billion , which extend through 2036 . Contingencies The Company is involved in legal and regulatory proceedings, lawsuits, claims and investigations incidental to the normal conduct of business, relating to such matters as product liability, land disputes, commercial contracts, employment, antitrust, intellectual property, workers' compensation, chemical exposure, asbestos exposure, trade compliance, prior acquisitions and divestitures, claims of legacy stockholders, past waste disposal practices and release of chemicals into the environment. The Company is actively defending those matters where the Company is named as a defendant. The Company does not believe any of the potential outcomes from these matters would be material to our results of operations, cash flows or financial position. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Year Ended December 31, 2015 2014 2013 (In $ millions) Interest paid, net of amounts capitalized 120 146 166 Taxes paid, net of refunds 151 199 129 Noncash Investing and Financing Activities Accrued capital expenditures (37 ) 3 38 Accrued Kelsterbach capital expenditures ( Note 4 ) — — (2 ) Asset retirement obligations 3 4 9 Capital expenditure reimbursement — 4 — Capital lease obligations 6 22 28 Contingent consideration ( Note 4 ) — 8 — Distribution to noncontrolling interest ( Note 5 ) (4 ) — — Lease incentives — — 3 Mitsui reimbursement — 70 (70 ) |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Business Segments The Company operates through business segments according to the nature and economic characteristics of its products as well as the manner in which the information is used internally by the Company's key decision maker, who is the Company's Chief Executive Officer. The Company's business segments are as follows: • Advanced Engineered Materials The Company's Advanced Engineered Materials segment includes the engineered materials business and certain strategic affiliates. The engineered materials business develops, produces and supplies a broad portfolio of high performance specialty polymers for application in automotive and medical applications as well as industrial products and consumer electronics. Together with its strategic affiliates, the Company's engineered materials business is a leading participant in the global specialty polymers industry. The primary products of Advanced Engineered Materials are used in a broad range of end-use products including fuel system components, automotive safety systems, medical applications, electronics, appliances, industrial products, battery separators, conveyor belts, filtration equipment, coatings, and electrical applications and products. • Consumer Specialties The Company's Consumer Specialties segment includes the cellulose derivatives and food ingredients businesses, which serve consumer-driven applications. These operating segments are aggregated by the Company into one reportable segment based on similar economic characteristics and similar production processes, classes of customers and selling and distribution practices. The Company's cellulose derivatives business is a leading global producer and supplier of acetate flake, acetate film and acetate tow, primarily used in filtration applications. The Company's food ingredients business is a leading global supplier of premium quality ingredients for the food and beverage and pharmaceuticals industries and is a leading producer of food protection ingredients, such as potassium sorbate and sorbic acid. The Company's food ingredients business produces and sells the Qorus ® sweetener system and Sunett ® high intensity sweeteners. • Industrial Specialties The Company's Industrial Specialties segment includes the emulsion polymers and EVA polymers businesses, which are operating segments aggregated by the Company into one reportable segment based on similar products, production processes, classes of customers and selling and distribution practices as well as economic similarities over a normal business cycle. The Company's emulsion polymers business is a leading global producer of vinyl acetate-based emulsions and develops products and application technologies to improve performance, create value and drive innovation in applications such as paints and coatings, adhesives, construction, glass fiber, textiles and paper. The Company's EVA polymers business is a leading North American manufacturer of a full range of specialty ethylene vinyl acetate resins and compounds as well as select grades of low-density polyethylene. The Company's EVA polymers' products are used in many applications including flexible packaging films, lamination film products, hot melt adhesives, medical, automotive parts and carpeting. • Acetyl Intermediates The Company's Acetyl Intermediates segment includes the intermediate chemistry business, which produces and supplies acetyl products, including acetic acid, vinyl acetate monomer, acetic anhydride and acetate esters. These products are generally used as starting materials for colorants, paints, adhesives, coatings and medicines. The Acetyl Intermediates segment also produces organic solvents and intermediates for pharmaceutical, agricultural and chemical products. • Other Activities Other Activities primarily consists of corporate center costs, including administrative activities such as finance, information technology and human resource functions, interest income and expense associated with financing activities and results of the Company's captive insurance companies. Other Activities also includes the components of net periodic benefit cost (interest cost, expected return on assets and net actuarial gains and losses) for the Company's defined benefit pension plans and other postretirement plans not allocated to the Company's business segments. The business segment management reporting and controlling systems are based on the same accounting policies as those described in the summary of significant accounting policies ( Note 2 ). Sales transactions between business segments are generally recorded at values that approximate third-party selling prices. Advanced Engineered Materials Consumer Specialties Industrial Specialties Acetyl Intermediates Other Activities Eliminations Consolidated (In $ millions) Year Ended December 31, 2015 Net sales 1,326 969 (1) 1,082 2,744 (2) — (447 ) 5,674 Other (charges) gains, net (7 ) (25 ) (10 ) (300 ) (9 ) — (351 ) Operating profit (loss) 235 262 72 (3 ) (240 ) — 326 Equity in net earnings (loss) of affiliates 150 2 — 6 23 — 181 Depreciation and amortization 99 60 64 123 (3) 11 — 357 Capital expenditures 73 65 56 282 7 — 483 (4) As of December 31, 2015 Goodwill and intangible assets, net 338 249 49 194 — — 830 Total assets 2,324 1,458 747 2,387 1,670 — 8,586 Year Ended December 31, 2014 Net sales 1,459 1,160 (1) 1,224 3,493 (2) — (534 ) 6,802 Other (charges) gains, net (1 ) 16 (1 ) (3 ) 4 — 15 Operating profit (loss) 221 388 76 558 (485 ) — 758 Equity in net earnings (loss) of affiliates 161 9 — 20 56 — 246 Depreciation and amortization 106 43 50 81 12 — 292 Capital expenditures 65 103 29 478 6 — 681 (4) As of December 31, 2014 Goodwill and intangible assets, net 358 261 54 208 — — 881 Total assets 2,484 1,491 823 2,495 1,503 — 8,796 Year Ended December 31, 2013 Net sales 1,352 1,214 (1) 1,155 3,241 (2) — (452 ) 6,510 Other (charges) gains, net (13 ) — (4 ) (141 ) — — (158 ) Operating profit (loss) 904 346 64 153 41 — 1,508 Equity in net earnings (loss) of affiliates 148 3 — 5 24 — 180 Depreciation and amortization 110 41 52 86 16 — 305 Capital expenditures 67 116 33 184 8 — 408 (5) ______________________________ (1) Includes intersegment sales of $0 million , $2 million and $4 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. (2) Includes intersegment sales of $447 million , $532 million and $448 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. (3) See Note 4 - Acquisitions, Dispositions and Plant Closures for further information. (4) Includes a decrease in accrued capital expenditures of $37 million and an increase of $3 million for the years ended December 31, 2015 and 2014 , respectively. (5) Excludes expenditures related to the relocation of the Company's POM operations in Germany ( Note 4 ) and includes an increase in accrued capital expenditures of $38 million for the year ended December 31, 2013 . Geographical Area Information The net sales based on the geographic location of the Company's facilities are as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) Belgium 417 480 525 Canada 162 204 249 China 800 996 863 Germany 1,779 2,156 2,049 Mexico 204 259 256 Singapore 703 632 578 US 1,463 1,899 1,808 Other 146 176 182 Total 5,674 6,802 6,510 Property, plant and equipment, net based on the geographic location of the Company's facilities is as follows: As of December 31, 2015 2014 (In $ millions) Belgium 56 66 Canada 137 138 China 417 593 Germany 931 1,084 Mexico 156 151 Singapore 68 50 US 1,774 1,563 Other 70 88 Total 3,609 3,733 |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Year Ended December 31, 2015 2014 2013 (In $ millions, except share data) Amounts attributable to Celanese Corporation Earnings (loss) from continuing operations 306 631 1,101 Earnings (loss) from discontinued operations (2 ) (7 ) — Net earnings (loss) 304 624 1,101 Weighted average shares - basic 150,838,050 155,012,370 158,801,150 Incremental shares attributable to equity awards (1) 1,449,905 1,154,623 533,069 Weighted average shares - diluted 152,287,955 156,166,993 159,334,219 ______________________________ (1) Excludes 2,903 , 0 and 40,306 equity award shares for the years ended December 31, 2015 , 2014 and 2013 , respectively, as their effect would have been antidilutive. |
Consolidating Guarantor Financi
Consolidating Guarantor Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Consolidating Guarantor Financial Information [Abstract] | |
Consolidating Guarantor Financial Information | Consolidating Guarantor Financial Information The Senior Notes were issued by Celanese US (the "Issuer") and are guaranteed by Celanese Corporation (the "Parent Guarantor") and the Subsidiary Guarantors ( Note 14 ). The Issuer and Subsidiary Guarantors are 100% owned subsidiaries of the Parent Guarantor. The Parent Guarantor and Subsidiary Guarantors have guaranteed the Notes fully and unconditionally and jointly and severally. For cash management purposes, the Company transfers cash between the Parent Guarantor, Issuer, Subsidiary Guarantors and non-guarantors through intercompany financing arrangements, contributions or declaration of dividends between the respective parent and its subsidiaries. The transfer of cash under these activities facilitates the ability of the recipient to make specified third-party payments for principal and interest on the Company's outstanding debt, Common Stock dividends and Common Stock repurchases. The consolidating statements of cash flow present such intercompany financing activities, contributions and dividends consistent with how such activity would be presented in a stand-alone statement of cash flows. The Company has not presented separate financial information and other disclosures for each of its Subsidiary Guarantors because it believes such financial information and other disclosures would not provide investors with any additional information that would be material in evaluating the sufficiency of the guarantees. For the year ended December 31, 2015, $54 million in interest expense was allocated from the Issuer to Subsidiary Guarantors. The consolidating financial information for the Parent Guarantor, the Issuer, the Subsidiary Guarantors and the non-guarantors are as follows: CELANESE CORPORATION AND SUBSIDIARIES CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2015 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net sales — — 2,410 4,485 (1,221 ) 5,674 Cost of sales — — (1,729 ) (3,897 ) 1,270 (4,356 ) Gross profit — — 681 588 49 1,318 Selling, general and administrative expenses — — (242 ) (264 ) — (506 ) Amortization of intangible assets — — (5 ) (6 ) — (11 ) Research and development expenses — — (78 ) (41 ) — (119 ) Other (charges) gains, net — — (5 ) (346 ) — (351 ) Foreign exchange gain (loss), net — — — 4 — 4 Gain (loss) on disposition of businesses and assets, net — — (6 ) (3 ) — (9 ) Operating profit (loss) — — 345 (68 ) 49 326 Equity in net earnings (loss) of affiliates 302 314 84 162 (681 ) 181 Interest expense — (77 ) (76 ) (36 ) 70 (119 ) Refinancing expense — — — — — — Interest income — 18 40 13 (70 ) 1 Dividend income - cost investments — — — 107 — 107 Other income (expense), net — (2 ) 2 (8 ) — (8 ) Earnings (loss) from continuing operations before tax 302 253 395 170 (632 ) 488 Income tax (provision) benefit 2 49 (133 ) (98 ) (21 ) (201 ) Earnings (loss) from continuing operations 304 302 262 72 (653 ) 287 Earnings (loss) from operation of discontinued operations — — (3 ) — — (3 ) Gain (loss) on disposition of discontinued operations — — — — — — Income tax (provision) benefit from discontinued operations — — 1 — — 1 Earnings (loss) from discontinued operations — — (2 ) — — (2 ) Net earnings (loss) 304 302 260 72 (653 ) 285 Net (earnings) loss attributable to noncontrolling interests — — — 19 — 19 Net earnings (loss) attributable to Celanese Corporation 304 302 260 91 (653 ) 304 CELANESE CORPORATION AND SUBSIDIARIES CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2014 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net sales — — 2,860 5,166 (1,224 ) 6,802 Cost of sales — — (1,822 ) (4,550 ) 1,186 (5,186 ) Gross profit — — 1,038 616 (38 ) 1,616 Selling, general and administrative expenses — — (313 ) (445 ) — (758 ) Amortization of intangible assets — — (7 ) (13 ) — (20 ) Research and development expenses — — (47 ) (39 ) — (86 ) Other (charges) gains, net — — 28 (13 ) — 15 Foreign exchange gain (loss), net — — — (2 ) — (2 ) Gain (loss) on disposition of businesses and assets, net — — (11 ) 4 — (7 ) Operating profit (loss) — — 688 108 (38 ) 758 Equity in net earnings (loss) of affiliates 622 806 90 210 (1,482 ) 246 Interest expense — (190 ) (22 ) (78 ) 143 (147 ) Refinancing expense — (29 ) — — — (29 ) Interest income — 57 72 15 (143 ) 1 Dividend income - cost investments — — — 116 — 116 Other income (expense), net — — 4 (8 ) — (4 ) Earnings (loss) from continuing operations before tax 622 644 832 363 (1,520 ) 941 Income tax (provision) benefit 2 (22 ) (237 ) (71 ) 14 (314 ) Earnings (loss) from continuing operations 624 622 595 292 (1,506 ) 627 Earnings (loss) from operation of discontinued operations — — (8 ) (3 ) — (11 ) Gain (loss) on disposition of discontinued operations — — — — — — Income tax (provision) benefit from discontinued operations — — 3 1 — 4 Earnings (loss) from discontinued operations — — (5 ) (2 ) — (7 ) Net earnings (loss) 624 622 590 290 (1,506 ) 620 Net (earnings) loss attributable to noncontrolling interests — — — 4 — 4 Net earnings (loss) attributable to Celanese Corporation 624 622 590 294 (1,506 ) 624 CELANESE CORPORATION AND SUBSIDIARIES CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2013 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net sales — — 2,799 4,911 (1,200 ) 6,510 Cost of sales — — (1,827 ) (4,531 ) 1,213 (5,145 ) Gross profit — — 972 380 13 1,365 Selling, general and administrative expenses — — 53 (364 ) — (311 ) Amortization of intangible assets — — (11 ) (21 ) — (32 ) Research and development expenses — — (53 ) (32 ) — (85 ) Other (charges) gains, net — — 2 (156 ) (4 ) (158 ) Foreign exchange gain (loss), net — — — (6 ) — (6 ) Gain (loss) on disposition of businesses and assets, net — — (2 ) 737 — 735 Operating profit (loss) — — 961 538 9 1,508 Equity in net earnings (loss) of affiliates 1,096 1,180 116 158 (2,370 ) 180 Interest expense — (192 ) (34 ) (70 ) 124 (172 ) Refinancing expense — (1 ) — — — (1 ) Interest income — 55 65 5 (124 ) 1 Dividend income - cost investments — — — 93 — 93 Other income (expense), net — — (52 ) 52 — — Earnings (loss) from continuing operations before tax 1,096 1,042 1,056 776 (2,361 ) 1,609 Income tax (provision) benefit 5 54 (326 ) (229 ) (12 ) (508 ) Earnings (loss) from continuing operations 1,101 1,096 730 547 (2,373 ) 1,101 Earnings (loss) from operation of discontinued operations — — 2 (2 ) — — Gain (loss) on disposition of discontinued operations — — — — — — Income tax (provision) benefit from discontinued operations — — (1 ) 1 — — Earnings (loss) from discontinued operations — — 1 (1 ) — — Net earnings (loss) 1,101 1,096 731 546 (2,373 ) 1,101 Net (earnings) loss attributable to noncontrolling interests — — — — — — Net earnings (loss) attributable to Celanese Corporation 1,101 1,096 731 546 (2,373 ) 1,101 CELANESE CORPORATION AND SUBSIDIARIES CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2015 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net earnings (loss) 304 302 260 72 (653 ) 285 Other comprehensive income (loss), net of tax Unrealized gain (loss) on marketable securities — — — — — — Foreign currency translation (188 ) (188 ) (181 ) (231 ) 600 (188 ) Gain (loss) from cash flow hedges 2 2 5 1 (8 ) 2 Pension and postretirement benefits 3 3 3 2 (8 ) 3 Total other comprehensive income (loss), net of tax (183 ) (183 ) (173 ) (228 ) 584 (183 ) Total comprehensive income (loss), net of tax 121 119 87 (156 ) (69 ) 102 Comprehensive (income) loss attributable to noncontrolling interests — — — 19 — 19 Comprehensive income (loss) attributable to Celanese Corporation 121 119 87 (137 ) (69 ) 121 CELANESE CORPORATION AND SUBSIDIARIES CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2014 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net earnings (loss) 624 622 590 290 (1,506 ) 620 Other comprehensive income (loss), net of tax Unrealized gain (loss) on marketable securities 1 1 1 1 (3 ) 1 Foreign currency translation (148 ) (148 ) (31 ) (65 ) 244 (148 ) Gain (loss) from cash flow hedges 40 40 (1 ) (7 ) (32 ) 40 Pension and postretirement benefits (54 ) (54 ) (54 ) (5 ) 113 (54 ) Total other comprehensive income (loss), net of tax (161 ) (161 ) (85 ) (76 ) 322 (161 ) Total comprehensive income (loss), net of tax 463 461 505 214 (1,184 ) 459 Comprehensive (income) loss attributable to noncontrolling interests — — — 4 — 4 Comprehensive income (loss) attributable to Celanese Corporation 463 461 505 218 (1,184 ) 463 CELANESE CORPORATION AND SUBSIDIARIES CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2013 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net earnings (loss) 1,101 1,096 731 546 (2,373 ) 1,101 Other comprehensive income (loss), net of tax Unrealized gain (loss) on marketable securities 1 1 1 — (2 ) 1 Foreign currency translation 20 20 (10 ) (8 ) (2 ) 20 Gain (loss) from cash flow hedges 6 6 — — (6 ) 6 Pension and postretirement benefits 58 58 56 2 (116 ) 58 Total other comprehensive income (loss), net of tax 85 85 47 (6 ) (126 ) 85 Total comprehensive income (loss), net of tax 1,186 1,181 778 540 (2,499 ) 1,186 Comprehensive (income) loss attributable to noncontrolling interests — — — — — — Comprehensive income (loss) attributable to Celanese Corporation 1,186 1,181 778 540 (2,499 ) 1,186 CELANESE CORPORATION AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET As of December 31, 2015 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) ASSETS Current Assets Cash and cash equivalents — — 21 946 — 967 Trade receivables - third party and affiliates — — 132 722 (148 ) 706 Non-trade receivables, net 37 580 298 522 (1,152 ) 285 Inventories, net — — 258 474 (50 ) 682 Deferred income taxes — — 19 68 (19 ) 68 Marketable securities, at fair value — — 30 — — 30 Other assets — 12 28 40 (31 ) 49 Total current assets 37 592 786 2,772 (1,400 ) 2,787 Investments in affiliates 2,341 3,947 3,909 738 (10,097 ) 838 Property, plant and equipment, net — — 1,001 2,608 — 3,609 Deferred income taxes — 2 178 42 — 222 Other assets — 418 151 227 (496 ) 300 Goodwill — — 314 391 — 705 Intangible assets, net — — 51 74 — 125 Total assets 2,378 4,959 6,390 6,852 (11,993 ) 8,586 LIABILITIES AND EQUITY Current Liabilities Short-term borrowings and current installments of long-term debt - third party and affiliates — 479 181 213 (360 ) 513 Trade payables - third party and affiliates — — 240 495 (148 ) 587 Other liabilities — 28 281 283 (262 ) 330 Deferred income taxes — 26 — 23 (19 ) 30 Income taxes payable — — 537 116 (563 ) 90 Total current liabilities — 533 1,239 1,130 (1,352 ) 1,550 Noncurrent Liabilities Long-term debt, net of unamortized deferred financing costs — 2,078 706 187 (503 ) 2,468 Deferred income taxes — — — 136 — 136 Uncertain tax positions — 7 29 131 — 167 Benefit obligations — — 960 229 — 1,189 Other liabilities — — 93 155 (1 ) 247 Total noncurrent liabilities — 2,085 1,788 838 (504 ) 4,207 Total Celanese Corporation stockholders' equity 2,378 2,341 3,363 4,433 (10,137 ) 2,378 Noncontrolling interests — — — 451 — 451 Total equity 2,378 2,341 3,363 4,884 (10,137 ) 2,829 Total liabilities and equity 2,378 4,959 6,390 6,852 (11,993 ) 8,586 CELANESE CORPORATION AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET As of December 31, 2014 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) ASSETS Current Assets Cash and cash equivalents — — 110 670 — 780 Trade receivables - third party and affiliates — — 184 821 (204 ) 801 Non-trade receivables, net 35 477 2,265 407 (2,943 ) 241 Inventories, net — — 268 613 (99 ) 782 Deferred income taxes — — 39 12 (22 ) 29 Marketable securities, at fair value — — 32 — — 32 Other assets — 6 12 34 (19 ) 33 Total current assets 35 483 2,910 2,557 (3,287 ) 2,698 Investments in affiliates 2,784 5,889 4,349 613 (12,759 ) 876 Property, plant and equipment, net — — 1,029 2,704 — 3,733 Deferred income taxes — 16 211 26 — 253 Other assets — 653 145 400 (843 ) 355 Goodwill — — 314 435 — 749 Intangible assets, net — — 73 59 — 132 Total assets 2,819 7,041 9,031 6,794 (16,889 ) 8,796 LIABILITIES AND EQUITY Current Liabilities Short-term borrowings and current installments of long-term debt - third party and affiliates — 1,894 184 290 (2,231 ) 137 Trade payables - third party and affiliates — — 413 548 (204 ) 757 Other liabilities 1 34 225 402 (230 ) 432 Deferred income taxes — 22 — 7 (22 ) 7 Income taxes payable — — 484 45 (524 ) 5 Total current liabilities 1 1,950 1,306 1,292 (3,211 ) 1,338 Noncurrent Liabilities Long-term debt, net of unamortized deferred financing costs — 2,248 899 208 (769 ) 2,586 Deferred income taxes — — — 141 — 141 Uncertain tax positions — 6 16 137 — 159 Benefit obligations — — 923 288 — 1,211 Other liabilities — 53 121 192 (83 ) 283 Total noncurrent liabilities — 2,307 1,959 966 (852 ) 4,380 Total Celanese Corporation stockholders' equity 2,818 2,784 5,766 4,276 (12,826 ) 2,818 Noncontrolling interests — — — 260 — 260 Total equity 2,818 2,784 5,766 4,536 (12,826 ) 3,078 Total liabilities and equity 2,819 7,041 9,031 6,794 (16,889 ) 8,796 CELANESE CORPORATION AND SUBSIDIARIES CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2015 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net cash provided by (used in) operating activities 591 536 529 422 (1,216 ) 862 Investing Activities Capital expenditures on property, plant and equipment — — (128 ) (104 ) — (232 ) Acquisitions, net of cash acquired — — (3 ) (3 ) — (6 ) Proceeds from sale of businesses and assets, net — — — 4 — 4 Capital expenditures related to Kelsterbach plant relocation — — — — — — Capital expenditures related to Fairway Methanol LLC — — (20 ) (268 ) — (288 ) Return of capital from subsidiary — — — — — — Contributions to subsidiary — — (120 ) — 120 — Intercompany loan receipts (disbursements) — (333 ) (33 ) (15 ) 381 — Other, net — — (12 ) (24 ) — (36 ) Net cash provided by (used in) investing activities — (333 ) (316 ) (410 ) 501 (558 ) Financing Activities Short-term borrowings (repayments), net — 383 — — (33 ) 350 Proceeds from short-term borrowings — — — 80 — 80 Repayments of short-term borrowings — — — (83 ) — (83 ) Proceeds from long-term debt — 15 406 — (421 ) — Repayments of long-term debt — (9 ) (74 ) (14 ) 73 (24 ) Purchases of treasury stock, including related fees (420 ) — — — — (420 ) Dividends to parent — (592 ) (624 ) — 1,216 — Contributions from parent — — — 120 (120 ) — Stock option exercises 3 — — — — 3 Series A common stock dividends (174 ) — — — — (174 ) Return of capital to parent — — — — — — Contributions from noncontrolling interests — — — 214 — 214 Other, net — — (10 ) (2 ) — (12 ) Net cash provided by (used in) financing activities (591 ) (203 ) (302 ) 315 715 (66 ) Exchange rate effects on cash and cash equivalents — — — (51 ) — (51 ) Net increase (decrease) in cash and cash equivalents — — (89 ) 276 — 187 Cash and cash equivalents as of beginning of period — — 110 670 — 780 Cash and cash equivalents as of end of period — — 21 946 — 967 CELANESE CORPORATION AND SUBSIDIARIES CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2014 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net cash provided by (used in) operating activities 389 498 644 433 (1,002 ) 962 Investing Activities Capital expenditures on property, plant and equipment — — (183 ) (71 ) — (254 ) Acquisitions, net of cash acquired — — (10 ) — — (10 ) Proceeds from sale of businesses and assets, net — — — — — — Capital expenditures related to Kelsterbach plant relocation — — — — — — Capital expenditures related to Fairway Methanol LLC — — (44 ) (380 ) — (424 ) Return of capital from subsidiary — 28 51 — (79 ) — Contributions to subsidiary — — (213 ) — 213 — Intercompany loan receipts (disbursements) — (70 ) (93 ) (75 ) 238 — Other, net — — (9 ) (8 ) — (17 ) Net cash provided by (used in) investing activities — (42 ) (501 ) (534 ) 372 (705 ) Financing Activities Short-term borrowings (repayments), net — 93 6 (15 ) (93 ) (9 ) Proceeds from short-term borrowings — — — 62 — 62 Repayments of short-term borrowings — — — (91 ) — (91 ) Proceeds from long-term debt — 462 75 — (150 ) 387 Repayments of long-term debt — (611 ) (5 ) (15 ) 5 (626 ) Purchases of treasury stock, including related fees (250 ) — — — — (250 ) Dividends to parent — (390 ) (390 ) (222 ) 1,002 — Contributions from parent — — — 213 (213 ) — Stock option exercises 5 — — — — 5 Series A common stock dividends (144 ) — — — — (144 ) Return of capital to parent — — — (79 ) 79 — Contributions from noncontrolling interests — — — 264 — 264 Other, net — (10 ) (3 ) — — (13 ) Net cash provided by (used in) financing activities (389 ) (456 ) (317 ) 117 630 (415 ) Exchange rate effects on cash and cash equivalents — — — (46 ) — (46 ) Net increase (decrease) in cash and cash equivalents — — (174 ) (30 ) — (204 ) Cash and cash equivalents as of beginning of period — — 284 700 — 984 Cash and cash equivalents as of end of period — — 110 670 — 780 CELANESE CORPORATION AND SUBSIDIARIES CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2013 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net cash provided by (used in) operating activities 228 105 766 154 (491 ) 762 Investing Activities Capital expenditures on property, plant and equipment — — (156 ) (121 ) — (277 ) Acquisitions, net of cash acquired — — — — — — Proceeds from sale of businesses and assets, net — — — 13 — 13 Capital expenditures related to Kelsterbach plant relocation — — — (7 ) — (7 ) Capital expenditures related to Fairway Methanol LLC — — (93 ) — — (93 ) Return of capital from subsidiary — — — — — — Contributions to subsidiary — — (20 ) — 20 — Intercompany loan receipts (disbursements) — 5 (131 ) — 126 — Other, net — — (45 ) (13 ) — (58 ) Net cash provided by (used in) investing activities — 5 (445 ) (128 ) 146 (422 ) Financing Activities Short-term borrowings (repayments), net — 131 (8 ) (3 ) (131 ) (11 ) Proceeds from short-term borrowings — — — 177 — 177 Repayments of short-term borrowings — — — (123 ) — (123 ) Proceeds from long-term debt — 24 50 — — 74 Repayments of long-term debt — (34 ) (121 ) (48 ) 5 (198 ) Purchases of treasury stock, including related fees (164 ) — — — — (164 ) Dividends to parent — (229 ) (229 ) (33 ) 491 — Contributions from parent — — — 20 (20 ) — Stock option exercises 9 — — — — 9 Series A common stock dividends (83 ) — — — — (83 ) Return of capital to parent — — — — — — Contributions from noncontrolling interests — — — — — — Other, net — (2 ) (4 ) (1 ) — (7 ) Net cash provided by (used in) financing activities (238 ) (110 ) (312 ) (11 ) 345 (326 ) Exchange rate effects on cash and cash equivalents — — — 11 — 11 Net increase (decrease) in cash and cash equivalents (10 ) — 9 26 — 25 Cash and cash equivalents as of beginning of period 10 — 275 674 — 959 Cash and cash equivalents as of end of period — — 284 700 — 984 |
Summary of Accounting Policies
Summary of Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Consolidation principles | Consolidation Principles The consolidated financial statements have been prepared in accordance with US GAAP for all periods presented and include the accounts of the Company and its majority owned subsidiaries over which the Company exercises control. All intercompany accounts and transactions have been eliminated in consolidation. |
Estimates and assumptions | Estimates and Assumptions The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of net sales, expenses and allocated charges during the reporting period. Significant estimates pertain to impairments of goodwill, intangible assets and other long-lived assets, purchase price allocations, restructuring costs and other (charges) gains, net, income taxes, pension and other postretirement benefits, asset retirement obligations, environmental liabilities and loss contingencies, among others. Actual results could differ from those estimates. |
Fair Value Measurement | Fair Value Measurements The Company determines fair value based on the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers assumptions that market participants would use when pricing the asset or liability. Market participant assumptions are categorized by a three-tiered fair value hierarchy which prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. If a financial instrument uses inputs that fall in different levels of the hierarchy, the instrument will be categorized based upon the lowest level of input that is significant to the fair value calculation. Valuations for fund investments, such as common/collective trusts, registered investment companies and short-term investment funds, which do not have readily determinable fair values, are typically estimated using a net asset value provided by a third party as a practical expedient. The levels of inputs used to measure fair value are as follows: Level 1 - unadjusted quoted prices for identical assets or liabilities in active markets accessible by the Company Level 2 - inputs that are observable in the marketplace other than those inputs classified as Level 1 Level 3 - inputs that are unobservable in the marketplace and significant to the valuation |
Purchase Accounting | Purchase Accounting The Company allocates the purchase price of its acquisitions to identifiable intangible assets acquired based on their estimated fair values. The excess of purchase price over the aggregate fair values are recorded as goodwill. Intangible assets are valued using the relief from royalty and discounted cash flow methodologies, which are considered Level 3 measurements. The relief from royalty method estimates the Company's theoretical royalty savings from ownership of the intangible asset. Key assumptions used in this model include discount rates, royalty rates, growth rates, sales projections and terminal value rates, all of which require significant management judgment and, therefore, are susceptible to change. The key assumptions used in the discounted cash flow valuation model include discount rates, growth rates, cash flow projections and terminal value rates. Discount rates, growth rates and cash flow projections are the most sensitive and susceptible to change as they require significant management judgment. The Company calculates the fair value of the intangible assets acquired to allocate the purchase price at the acquisition date. The Company may use the assistance of third-party valuation consultants. |
Cash and Cash Equivalents | Cash and Cash Equivalents All highly liquid investments with original maturities of three months or less are considered cash equivalents. |
Allowance for doubtful accounts | Allowance for Doubtful Accounts The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company believes, based on historical results, the likelihood of actual write-offs having a material impact on financial results is low. The allowance for doubtful accounts is estimated using factors such as customer credit ratings, past collection history and general risk profile. Receivables are charged against the allowance for doubtful accounts when it is probable that the receivable will not be recovered. |
Inventories | Inventories Inventories, including stores and supplies, are stated at the lower of cost or market. Cost for inventories is determined using the first-in, first-out ("FIFO") method. Cost includes raw materials, direct labor and manufacturing overhead. Cost for stores and supplies is primarily determined by the average cost method. |
Investments in marketable securities | Investments • Marketable Securities The cost of available-for-sale securities sold is determined using the specific identification method. |
Investments in affiliates | Investments in Affiliates Investments where the Company can exercise significant influence over operating and financial policies of an investee, which is generally considered when an investor owns 20% or more of the voting stock of an investee, are accounted for under the equity method of accounting. Investments where the Company does not exercise significant influence are accounted for under the cost method of accounting. The Company determined it cannot exercise significant influence over certain investments where the Company owns greater than a 20% interest due to local government investment in and influence over these entities, limitations on the Company's involvement in the day-to-day operations and the present inability of the entities to provide timely financial information prepared in accordance with US GAAP. Accordingly, these investments are accounted for under the cost method of accounting. In certain instances, the financial information of the Company's equity investees is not available on a timely basis. Accordingly, the Company records its proportional share of the investee's earnings or losses on a consistent lag of no more than one quarter . When required to assess the recoverability of its investments in affiliates, the Company estimates fair value using a discounted cash flow model. The Company may engage third-party valuation consultants to assist with this process. |
Property, plant and equipment, net | Property, Plant and Equipment, Net Land is recorded at historical cost. Buildings, machinery and equipment, including capitalized interest, and property under capital lease agreements, are recorded at cost less accumulated depreciation. The Company records depreciation and amortization in its consolidated statements of operations as either Cost of sales, Selling, general and administrative expenses or Research and development expenses consistent with the utilization of the underlying assets. Depreciation is calculated on a straight-line basis over the following estimated useful lives of depreciable assets: Land improvements 20 years Buildings and improvements 30 years Machinery and equipment 20 years Leasehold improvements are amortized over 10 years or the remaining life of the respective lease, whichever is shorter. Accelerated depreciation is recorded when the estimated useful life is shortened. Ordinary repair and maintenance costs, including costs for planned maintenance turnarounds, that do not extend the useful life of the asset are charged to earnings as incurred. Fully depreciated assets are retained in property and depreciation accounts until sold or otherwise disposed. In the case of disposals, assets and related depreciation are removed from the accounts, and the net amounts, less proceeds from disposal, are included in earnings. The Company assesses the recoverability of the carrying amount of its property, plant and equipment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. An impairment loss would be assessed when estimated undiscounted future cash flows from the operation and disposition of the asset group are less than the carrying amount of the asset group. Asset groups have identifiable cash flows and are largely independent of other asset groups. Measurement of an impairment loss is based on the excess of the carrying amount of the asset group over its fair value. The Company calculates the fair value using a discounted cash flow model incorporating discount rates commensurate with the risks involved for the asset group, which is classified as a Level 3 fair value measurement. The key assumptions used in the discounted cash flow valuation model include discount rates, growth rates, cash flow projections and terminal value rates. Discount rates, growth rates and cash flow projections involve significant judgment and are based on management's estimate of current and forecasted market conditions and cost structure. Impairment losses are generally recorded to Other (charges) gains, net in the consolidated statements of operations. |
Goodwill and other intangible assets | Goodwill and Intangible Assets, Net The Company assesses the recoverability of the carrying amount of its reporting unit goodwill and indefinite-lived intangible assets either qualitatively or quantitatively annually during the third quarter of its fiscal year using June 30 balances or whenever events or changes in circumstances indicate that the carrying amount of the asset may not be fully recoverable. The Company assesses the recoverability of finite-lived intangible assets in the same manner as for property, plant and equipment. Impairment losses are generally recorded to Other (charges) gains, net in the consolidated statements of operations. • Goodwill Recoverability of the carrying amount of goodwill is measured at the reporting unit level. In performing a quantitative analysis, the Company measures the recoverability of goodwill for each reporting unit using a discounted cash flow model incorporating discount rates commensurate with the risks involved, which is classified as a Level 3 fair value measurement. The key assumptions used in the discounted cash flow valuation model include discount rates, growth rates, tax rates, cash flow projections and terminal value rates. Discount rates, growth rates and cash flow projections are the most sensitive and susceptible to change as they require significant management judgment. Discount rates used are similar to the rates estimated by the weighted average cost of capital ("WACC") considering any differences in company-specific risk factors. The Company may engage third-party valuation consultants to assist with this process. • Indefinite-lived Intangible Assets Management tests indefinite-lived intangible assets for impairment quantitatively utilizing the relief from royalty method under the income approach to determine the estimated fair value for each indefinite-lived intangible asset, which is classified as a Level 3 fair value measurement. The relief from royalty method estimates the Company's theoretical royalty savings from ownership of the intangible asset. The key assumptions used in this model include discount rates, royalty rates, growth rates, tax rates, sales projections and terminal value rates. Discount rates, royalty rates, growth rates and sales projections are the assumptions most sensitive and susceptible to change as they require significant management judgment. Discount rates used are similar to the rates estimated by the WACC considering any differences in company-specific risk factors. Royalty rates are established by management and are periodically substantiated by third-party valuation consultants. • Definite-lived Intangible Assets Customer-related intangible assets and other intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives, which range from four to 20 years . |
Derivative and hedging instruments | Derivative and Hedging Instruments The Company manages its exposures to interest rates, foreign exchange rates and commodity prices through a risk management program that includes the use of derivative financial instruments. The Company does not use derivative financial instruments for speculative trading purposes. The fair value of all derivative instruments is recorded as an asset or liability on a net basis at the balance sheet date. • Interest Rate Risk Management To reduce the interest rate risk inherent in the Company's variable rate debt, the Company utilizes interest rate swap agreements to convert a portion of its variable rate borrowings into a fixed rate obligation. These interest rate swap agreements fix the London Interbank Offered Rate ("LIBOR") portion of the Company's US dollar denominated variable rate borrowings. Prior to December 2014, all or a portion of these interest rate swap agreements were designated as cash flow hedges. Accordingly, to the extent the cash flow hedge was effective, changes in the fair value of interest rate swaps were included in gain (loss) from cash flow hedges within Accumulated other comprehensive income (loss), net in the consolidated balance sheets. Hedge accounting is discontinued when the interest rate swap is no longer effective in offsetting cash flows attributable to the hedged risk, the interest rate swap expires or the cash flow hedge is dedesignated because it is no longer probable that the forecasted transaction will occur according to the original strategy. In December 2014, the Company dedesignated as cash flow hedges a notional value of $500 million US dollar interest rate swap agreements expiring January 2, 2016 . When a cash flow hedge is dedesignated and it is probable that the forecasted transaction will not occur, any related amounts previously included in Accumulated other comprehensive income (loss), net would be reclassified to earnings immediately. Mark-to-market adjustments on dedesignated interest rate swap agreements are included in Interest expense in the consolidated statements of operations through their expiration. • Foreign Exchange Risk Management Certain subsidiaries of the Company have assets and liabilities denominated in currencies other than their respective functional currencies, which creates foreign exchange risk. The Company also is exposed to foreign currency fluctuations on transactions with third-party entities as well as intercompany transactions. The Company minimizes its exposure to foreign currency fluctuations by entering into foreign currency forwards and swaps. These foreign currency forwards and swaps are not designated as hedges. Gains and losses on foreign currency forwards and swaps entered into to offset foreign exchange impacts on intercompany balances are included in Other income (expense), net in the consolidated statements of operations. Gains and losses on foreign currency forwards and swaps entered into to offset foreign exchange impacts on all other assets and liabilities are included in Foreign exchange gain (loss), net in the consolidated statements of operations. The Company uses non-derivative financial instruments that may give rise to foreign currency transaction gains or losses to hedge the foreign currency exposure of net investments in foreign operations. Accordingly, the effective portion of gains and losses from remeasurement of the non-derivative financial instrument is included in foreign currency translation within Accumulated other comprehensive income (loss), net in the consolidated balance sheets. Gains and losses are reclassified to earnings in the period the hedged investment is sold or liquidated. Prior to March 2015, the Company used cross-currency swap contracts to hedge its exposure to foreign currency exchange rate risk associated with certain intercompany loans. Under the terms of the contracts, the Company would have exchanged Euro fixed interest for US dollar fixed interest and at maturity would have exchanged Euro notional values for US dollar notional values. The terms of the contracts corresponded to the related hedged intercompany loans. The cross-currency swap contracts were designated as cash flow hedges. Accordingly, the effective portion of the unrealized gains and losses on the contracts was included in gain (loss) from cash flow hedges within Accumulated other comprehensive income (loss), net in the consolidated balance sheets. Gains and losses were reclassified to Interest expense in the consolidated statements of operations over the period that the hedged loans affected earnings. The Euro notional values were marked-to-market based on the current spot rate and gains and losses from remeasurement of the Euro notional values, as well as the foreign exchange impact on the intercompany loans, were included in Other income (expense), net in the consolidated statements of operations. In March 2015, the Company settled its cross-currency swap agreements. • Commodity Risk Management The Company has exposure to the prices of commodities in its procurement of certain raw materials. The Company manages its exposure to commodity risk primarily through the use of long-term supply agreements, multi-year purchasing and sales agreements and forward purchase contracts. The Company regularly assesses its practice of using forward purchase contracts and other raw material hedging instruments in accordance with changes in economic conditions. Forward purchases and swap contracts for raw materials are principally settled through physical delivery of the commodity. For qualifying contracts, the Company has elected to apply the normal purchases and normal sales exception based on the probability at the inception and throughout the term of the contract that the Company would not net settle and the transaction would result in the physical delivery of the commodity. Accordingly, realized gains and losses on these contracts are included in the cost of the commodity upon the settlement of the contract. |
Insurance loss reserves | Insurance Loss Reserves The Company has two wholly-owned insurance companies (the "Captives") that are used as a form of self-insurance for liability and workers compensation risks. Capitalization of the Captives is determined by regulatory guidelines. Premiums written are recognized as revenue based on policy periods. One of the Captives also insures certain third-party risks. The Captives use reinsurance arrangements to reduce their risks, however these arrangements do not relieve the Captives from their obligations to policyholders. The financial condition of the Captives' reinsurers are monitored to minimize exposure to insolvencies. However, failure of the reinsurers to honor their obligations could result in losses to the Captives. Claim reserves are established when sufficient information is available to indicate a specific policy is involved and the Company can reasonably estimate its liability. These reserves are based on management estimates and periodic actuarial valuations. In addition, reserves have been established to cover exposures for both known and unreported claims. Estimates of these liabilities are reviewed and updated regularly, however it is possible that actual results could differ significantly from the recorded liabilities. |
Asset Retirement Obligations | Asset Retirement Obligations Periodically, the Company will conclude a site no longer has an indeterminate life based on long-lived asset impairment triggering events and decisions made by the Company. Accordingly, the Company will record asset retirement obligations associated with such sites. To measure the fair value of the asset retirement obligations, the Company will use the expected present value technique, which is classified as a Level 3 fair value measurement. The expected present value technique uses a set of cash flows that represent the probability-weighted average of all possible cash flows based on the Company's judgment. The Company uses the following inputs to determine the fair value of the asset retirement obligations based on the Company's experience with fulfilling obligations of this type and the Company's knowledge of market conditions: (a) labor costs; (b) allocation of overhead costs; (c) profit on labor and overhead costs; (d) effect of inflation on estimated costs and profits; (e) risk premium for bearing the uncertainty inherent in cash flows, other than inflation; (f) time value of money represented by the risk-free interest rate commensurate with the timing of the associated cash flows; and (g) nonperformance risk relating to the liability, which includes the Company's own credit risk. The asset retirement obligations are accreted to their undiscounted values until the time at which they are expected to be settled. The Company has identified but not recognized asset retirement obligations related to certain of its existing operating facilities. Examples of these types of obligations include demolition, decommissioning, disposal and restoration activities. Legal obligations exist in connection with the retirement of these assets upon closure of the facilities or abandonment of the existing operations. However, the Company currently plans on continuing operations at these facilities indefinitely and therefore, a reasonable estimate of fair value cannot be determined at this time. In the event the Company considers plans to abandon or cease operations at these sites, an asset retirement obligation will be reassessed at that time. If certain operating facilities were to close, the related asset retirement obligations could significantly affect the Company's results of operations and cash flows. |
Environmental liabilities | Environmental Liabilities The Company manufactures and sells a diverse line of chemical products throughout the world. Accordingly, the Company's operations are subject to various hazards incidental to the production of industrial chemicals including the use, handling, processing, storage and transportation of hazardous materials. The Company recognizes losses and accrues liabilities relating to environmental matters if available information indicates that it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Depending on the nature of the site, the Company accrues through 15 years , unless the Company has government orders or other agreements that extend beyond 15 years . The Company estimates environmental liabilities on a case-by-case basis using the most current status of available facts, existing technology, presently enacted laws and regulations and prior experience in remediation of contaminated sites. Recoveries of environmental costs from other parties are recorded as assets when their receipt is deemed probable. An environmental reserve related to cleanup of a contaminated site might include, for example, a provision for one or more of the following types of costs: site investigation and testing costs, cleanup costs, costs related to soil and water contamination resulting from tank ruptures and post-remediation monitoring costs. These undiscounted reserves do not take into account any claims or recoveries from insurance. The measurement of environmental liabilities is based on the Company's periodic estimate of what it will cost to perform each of the elements of the remediation effort. The Company utilizes third parties to assist in the management and development of cost estimates for its sites. Changes to environmental regulations or other factors affecting environmental liabilities are reflected in the consolidated financial statements in the period in which they occur. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs are amortized using a method that approximates the effective interest rate method over the term of the related debt into Interest expense in the consolidated statements of operations. Upon the extinguishment of the related debt, any unamortized deferred financing costs are immediately expensed and included in Refinancing expense in the consolidated statements of operations. Upon the modification of the related debt, a portion of unamortized deferred financing costs may be immediately expensed and included in Refinancing expense in the consolidated statements of operations. Direct costs of refinancing activities are immediately expensed and included in Refinancing expense in the consolidated statements of operations. |
Pension and other postretirement obligations | Pension and Other Postretirement Obligations The Company recognizes a balance sheet asset or liability for each of its pension and other postretirement benefit plans equal to the plan's funded status as of a December 31 measurement date. The amounts recognized in the consolidated financial statements related to pension and other postretirement benefits are determined on an actuarial basis. Various assumptions are used in the calculation of the actuarial valuation of the employee benefit plans. These assumptions include the discount rate, compensation levels, expected long-term rates of return on plan assets and trends in health care costs. In addition, actuarial consultants use factors such as withdrawal and mortality rates to estimate the projected benefit obligation. The Company applies the long-term expected rate of return to the fair value of plan assets and immediately recognizes in operating results the change in fair value of plan assets and net actuarial gains and losses annually in the fourth quarter of each fiscal year and whenever a plan is required to be remeasured. Events requiring a plan remeasurement will be recognized in the quarter in which such remeasurement event occurs. The remaining components of pension and other postretirement plan net periodic benefit costs are recorded on a quarterly basis. The Company allocates the service cost and amortization of prior service cost (or credit) components of its pension and postretirement plans to its business segments. Interest cost, expected return on assets and net actuarial gains and losses are considered financing activities managed at the corporate level and are recorded to Other Activities. The Company believes the expense allocation appropriately matches the cost incurred for active employees to the respective business segment. Other postretirement benefit plans provide medical and life insurance benefits to retirees who meet minimum age and service requirements. The key determinants of the accumulated postretirement benefit obligation ("APBO") are the discount rate and the health care cost trend rate. • Discount Rate As of the measurement date, the Company determines the appropriate discount rate used to calculate the present value of future cash flows currently expected to be required to settle the pension and other postretirement benefit obligations. The discount rate is generally based on the yield on high-quality corporate fixed-income securities. In the US, the rate used to discount pension and other postretirement benefit plan liabilities is based on a yield curve developed from market data of over 300 Aa-grade non-callable bonds at the measurement date. This yield curve has discount rates that vary based on the duration of the obligations. The estimated future cash flows for the pension and other benefit obligations were matched to the corresponding rates on the yield curve to derive a weighted average discount rate. The Company determines its discount rates in the Euro zone using the iBoxx Euro Corporate AA Bond indices with appropriate adjustments for the duration of the plan obligations. In other international locations, the Company determines its discount rates based on the yields of high quality government bonds with a duration appropriate to the duration of the plan obligations. • Expected Long-Term Rate of Return on Assets The Company determines the long-term expected rate of return on plan assets by considering the current target asset allocation, as well as the historical and expected rates of return on various asset categories in which the plans are invested. A single long-term expected rate of return on plan assets is then calculated for each plan as the weighted average of the target asset allocation and the long-term expected rate of return assumptions for each asset category within each plan. The expected rate of return is assessed annually and is based on long-term relationships among major asset classes and the level of incremental returns that can be earned by the successful implementation of different active investment management strategies. Equity returns are based on estimates of long-term inflation rate, real rate of return, 10-year Treasury bond premium over cash and historical equity risk premium. Fixed income returns are based on maturity, historical long-term inflation, real rate of return and credit spreads. • Investment Policies and Strategies The investment objectives for the Company's pension plans are to earn, over a moving twenty-year period, a long-term expected rate of return, net of investment fees and transaction costs, sufficient to satisfy the benefit obligations of the plan, while at the same time maintaining adequate liquidity to pay benefit obligations and proper expenses, and meet any other cash needs, in the short- to medium-term. The equity and debt securities objectives are to provide diversified exposure across the US and global equity markets and to manage the risks and returns of the plans through the use of multiple managers and strategies. The fixed income strategy is designed to reduce liability-related interest rate risk by investing in bonds that match the duration and credit quality of the plan liabilities. Derivatives-based strategies may be used to mitigate investment risks. The financial objectives of the qualified pension plans are established in conjunction with a comprehensive review of each plan's liability structure. The Company's asset allocation policy is based on detailed asset/liability analysis. In developing investment policy and financial goals, consideration is given to each plan's demographics, the returns and risks associated with current and alternative investment strategies and the current and projected cash, expense and funding ratios of each plan. Investment policies must also comply with local statutory requirements as determined by each country. A formal asset/liability study of each plan is undertaken every three to five years or whenever there has been a material change in plan demographics, benefit structure or funding status and investment market. The Company has adopted a long-term investment horizon such that the risk and duration of investment losses are weighed against the long-term potential for appreciation of assets. Although there cannot be complete assurance that these objectives will be realized, it is believed that the likelihood for their realization is reasonably high, based upon the asset allocation chosen and the historical and expected performance of the asset classes utilized by the plans. The intent is for investments to be broadly diversified across asset classes, investment styles, market sectors, investment managers, developed and emerging markets and securities in order to moderate portfolio volatility and risk. Investments may be in separate accounts, commingled trusts, mutual funds and other pooled asset portfolios provided they all conform to fiduciary standards. External investment managers are hired to manage pension assets. Investment consultants assist with the screening process for each new manager hired. Over the long-term, the investment portfolio is expected to earn returns that exceed a composite of market indices that are weighted to match each plan's target asset allocation. The portfolio return should also (over the long-term) meet or exceed the return used for actuarial calculations in order to meet the future needs of each plan. |
Commitments and contingencies | Commitments and Contingencies Due to the inherent subjectivity of assessments and unpredictability of outcomes of legal proceedings, the Company's litigation accruals and estimates of possible loss or range of possible loss ("Possible Loss") may not represent the ultimate loss to the Company from legal proceedings. For reasonably possible loss contingencies that may be material, the Company estimates its Possible Loss when determinable, considering that the Company could incur no loss in certain matters. For some matters, the Company is unable, at this time, to estimate its Possible Loss that is reasonably possible of occurring. Generally, the less progress that has been made in the proceedings or the broader the range of potential results, the more difficult it is for the Company to estimate the Possible Loss that is reasonably possible the Company could incur. The Company may disclose certain information related to a plaintiff's claim against the Company alleged in the plaintiff's pleadings or otherwise publicly available. While information of this type may provide insight into the potential magnitude of a matter, it does not necessarily represent the Company's estimate of reasonably possible or probable loss. Some of the Company's exposure in legal matters may be offset by applicable insurance coverage. The Company does not consider the possible availability of insurance coverage in determining the amounts of any accruals or any estimates of Possible Loss. Thus, the Company's exposure and ultimate losses may be higher or lower, and possibly materially so, than the Company's litigation accruals and estimates of Possible Loss. |
Revenue recognition | Revenue Recognition The Company recognizes revenue when title and risk of loss have been transferred to the customer, generally at the time of shipment of products, and provided that four basic criteria are met: (a) persuasive evidence of an arrangement exists; (b) delivery has occurred or services have been rendered; (c) the fee is fixed or determinable; and (d) collectibility is reasonably assured. Shipping and handling fees billed to customers in a sales transaction are recorded in Net sales and shipping and handling costs incurred are recorded in Cost of sales. |
Research and development | Research and Development The costs of research and development are charged as an expense in the period in which they are incurred. |
Management compensation plans | Management Compensation Plans Share-based compensation expense is measured at the grant date, based on the fair value of the award, and is recognized over the participant's requisite service period. Upon termination of a participant's employment with the Company by reason of death or disability, retirement or by the Company without cause (as defined in the respective award agreements), a prorated award will generally vest on the original vesting date. The prorated award is calculated based on the time lapsed between the grant date and the date of termination, reduced by awards previously vested. Upon the termination of a Participant's employment with the Company for any other reason, any unvested portion of the award shall be forfeited and canceled without consideration. • Stock Options The fair value of each option granted is estimated on the grant date using the Black-Scholes option pricing method. Stock option awards are granted with an exercise price equal to the average of the high and low price of the Company's Series A common stock, par value $0.0001 per share ("Common Stock") on the grant date. Options issued under the 2009 Global Incentive Plan ("2009 GIP") have a term of seven years and vest on a graded basis over either three or four years . The computation of the expected volatility assumption used in the Black-Scholes calculations for new grants is based on the Company's historical volatilities. When establishing the expected life assumptions, the Company reviews annual historical employee exercise behavior of option grants with similar vesting periods. The estimated fair value of the Company's stock option awards less expected forfeitures is recognized over the vesting period of the respective grant on a straight-line basis. Generally, vested stock options are exercised through a broker-assisted cashless exercise program. A broker-assisted cashless exercise is the simultaneous exercise of a stock option by an employee and a sale of the shares through a broker. Authorized shares of the Company's Common Stock are used to settle stock options. • Restricted Stock Units ("RSUs") Performance-based RSUs. The Company generally grants performance-based RSUs to the Company's executive officers and certain employees annually in February. The Company may also grant performance-based RSUs to certain new employees or to employees who assume positions of increasing responsibility at the time those events occur. The fair value of the Company's performance-based RSUs with a performance condition is equal to the average of the high and low price of the Company's Common Stock on the grant date less the present value of the expected dividends not received during the vesting period. Performance-based RSUs generally vest in two equal tranches with the final tranche vesting three years from the grant date. Compensation expense for performance-based RSUs less estimated forfeitures is recognized over the vesting period of the respective grant based on the accelerated attribution method. The number of performance-based RSUs that ultimately vest is dependent on the achievement of internal profitability targets (performance condition). Based on the achievement of internal profitability targets, the ultimate number of shares of the Company's Common Stock issued will range from zero to stretch , with stretch defined individually under each award, net of shares used to cover minimum statutory personal income taxes withheld. Performance-based RSUs are canceled to the extent actual results do not meet minimum internal profitability measures, as defined individually under each award. Time-based RSUs. The Company grants non-employee Directors time-based RSUs annually that generally vest one year from the grant date. The Company also grants time-based RSUs to the Company's executives and certain employees that vest ratably over three years . The fair value of the time-based RSUs is equal to the average of the high and low price of the Company's Common Stock on the grant date less the present value of the expected dividends not received during the vesting period. Compensation expense for time-based RSUs less estimated forfeitures is recognized over the vesting period of the respective grant on a straight-line basis. The Company's RSUs are net settled by withholding shares of the Company's Common Stock to cover minimum statutory income taxes and remitting the remaining shares of the Company's Common Stock to an individual brokerage account. Authorized shares of the Company's Common Stock are used to settle RSUs. Under the 2009 GIP, the Company may not grant RSUs with the right to participate in dividends or dividend equivalents. |
Income taxes | Income Taxes The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and net operating loss and tax credit carryforwards. The amount of deferred taxes on these temporary differences is determined using the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, as applicable, based on tax rates and laws in the respective tax jurisdiction enacted as of the balance sheet date. The Company reviews its deferred tax assets for recoverability and establishes a valuation allowance based on historical taxable income, projected future taxable income, applicable tax strategies and the expected timing of the reversals of existing temporary differences. A valuation allowance is provided when it is more likely than not (likelihood of greater than 50%) that some portion or all of the deferred tax assets will not be realized. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. Tax positions are recognized only when it is more likely than not (likelihood of greater than 50%), based on technical merits, that the positions will be sustained upon examination. Tax positions that meet the more-likely-than-not threshold are measured using a probability weighted approach as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement. Whether the more-likely-than-not recognition threshold is met for a tax position is a matter of judgment based on the individual facts and circumstances of that position evaluated in light of all available evidence. The Company recognizes interest and penalties related to uncertain tax positions in Income tax (provision) benefit in the consolidated statements of operations. |
Functional and reporting currencies | Functional and Reporting Currencies For the Company's international operations where the functional currency is other than the US dollar, assets and liabilities are translated using period-end exchange rates, while the statement of operations amounts are translated using the average exchange rates for the respective period. Differences arising from the translation of assets and liabilities in comparison with the translation of the previous periods or from initial recognition during the period are included as a separate component of Accumulated other comprehensive income (loss), net. |
Summary of Accounting Policie37
Summary of Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Depreciable Assets [Table Text Block] | Depreciation is calculated on a straight-line basis over the following estimated useful lives of depreciable assets: Land improvements 20 years Buildings and improvements 30 years Machinery and equipment 20 years Leasehold improvements are amortized over 10 years or the remaining life of the respective lease, whichever is shorter. |
Acquisitions, Dispositions an38
Acquisitions, Dispositions and Plant Closures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Consumer Specialties [Member] | Lanaken, Belgium | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | The exit costs and plant shutdown costs related to the capacity reduction at the Lanaken facility ( Note 18 ) are as follows: Year Ended 2015 (In $ millions) Employee termination benefits (1) (24 ) Accelerated depreciation (10 ) Total (34 ) ______________________________ (1) Included in Other (charges) gains, net in the consolidated statements of operations. |
Industrial Specialties [Member] | Meredosia, IL [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | The exit costs and plant shutdown costs related to the closure of the Meredosia, Illinois VAE facility ( Note 18 ) are as follows: Year Ended 2015 (In $ millions) Employee termination benefits (1) (1 ) Asset impairments (1) (1 ) Accelerated depreciation (19 ) Other (1 ) Total (22 ) ______________________________ (1) Included in Other (charges) gains, net in the consolidated statements of operations. |
Industrial Specialties [Member] | Tarragona, Spain [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | The exit costs and plant shutdown costs related to the closure of the Tarragona VAE facility and the sale of the conventional facility ( Note 18 ) are as follows: Year Ended 2015 (In $ millions) Employee termination benefits (1) (6 ) Asset impairments (1) (1 ) Accelerated depreciation (9 ) Total (16 ) ______________________________ (1) Included in Other (charges) gains, net in the consolidated statements of operations. |
Ventures and Variable Interes39
Ventures and Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entity, Primary Beneficiary [Member] | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities | The carrying amount of the assets and liabilities associated with Fairway included in the consolidated balance sheets are as follows: As of December 31, 2015 2014 (In $ millions) Cash and cash equivalents 7 1 Trade receivables, net - third party & affiliate 12 — Property, plant and equipment (net of accumulated depreciation - 2015: $10) 772 530 Intangible assets (net of accumulated amortization - 2015: $0) 27 — Other assets 13 29 Total assets (1) 831 560 Trade payables 9 — Current liabilities (2) 5 40 Long-term debt 5 — Deferred income taxes 2 — Total liabilities 21 40 ______________________________ (1) Assets can only be used to settle the obligations of Fairway. (2) Amounts owed by Fairway to the Company for reimbursement of expenditures. |
Variable Interest Entity, Not Primary Beneficiary [Member] | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities | The carrying amount of the assets and liabilities associated with the obligations to nonconsolidated VIEs, as well as the maximum exposure to loss relating to these nonconsolidated VIEs are as follows: As of December 31, 2015 2014 (In $ millions) Property, plant and equipment, net 73 96 Trade payables 47 43 Current installments of long-term debt 10 9 Long-term debt 109 125 Total liabilities 166 177 Maximum exposure to loss 268 291 |
Marketable Securities, at Fai40
Marketable Securities, at Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The Company's nonqualified trusts hold available-for-sale securities for funding requirements of the Company's nonqualified pension plans ( Note 15 ) as follows: As of December 31, 2015 2014 (In $ millions) Amortized cost 30 32 Gross unrealized gain — — Gross unrealized loss — — Fair value 30 32 |
Receivables, Net Receivables, N
Receivables, Net Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of Trade Receivables - Third Party and Affiliates, Net | As of December 31, 2015 2014 (In $ millions) Trade receivables - third party and affiliates 712 810 Allowance for doubtful accounts - third party and affiliates (6 ) (9 ) Trade receivables - third party and affiliates, net 706 801 |
Schedule of Non-trade Receivables, Net | As of December 31, 2015 2014 (In $ millions) Non-income taxes receivable 121 99 Reinsurance receivables 18 20 Income taxes receivable 79 50 Other 67 72 Non-trade receivables, net 285 241 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | As of December 31, 2015 2014 (In $ millions) Finished goods 498 579 Work-in-process 43 53 Raw materials and supplies 141 150 Total 682 782 |
Investments in Affiliates (Tabl
Investments in Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Schedule of Equity Method Investments | Equity method investments and ownership interests by business segment are as follows: Ownership December 31, Carrying December 31, Share of December 31, Dividends and December 31, 2015 2014 2015 2014 2015 2014 2013 2015 2014 2013 (In percentages) (In $ millions) Advanced Engineered Materials Ibn Sina 25 25 87 97 88 115 111 (98 ) (85 ) (97 ) Fortron Industries LLC 50 50 100 97 11 9 8 (8 ) (7 ) (5 ) Korea Engineering Plastics Co., Ltd. 50 50 127 134 16 10 15 (10 ) (16 ) (19 ) Polyplastics Co., Ltd. 45 45 168 166 35 27 14 (20 ) (3 ) — Other Activities (1) InfraServ GmbH & Co. Gendorf KG 39 39 37 39 7 9 10 (5 ) (7 ) (6 ) InfraServ GmbH & Co. Hoechst KG (2) 32 32 147 174 21 72 17 (32 ) (26 ) (9 ) InfraServ GmbH & Co. Knapsack KG 27 27 18 20 4 4 4 (3 ) (4 ) (5 ) Consumer Specialties Sherbrooke Capital Health and Wellness, L.P. (3) 10 10 3 4 (1 ) — 1 — — — Total 687 731 181 246 180 (176 ) (148 ) (141 ) ______________________________ (1) InfraServ real estate service companies ("InfraServ Entities") own and operate sites in Frankfurt am Main-Hoechst, Gendorf and Knapsack, Germany. The InfraServ Entities were created to own land and property and to provide various technical and administrative services at these manufacturing locations. (2) InfraServ GmbH & Co. Hoechst KG is owned primarily by an entity included in the Company's Other Activities. The Company's Consumer Specialties segment and Acetyl Intermediates segment also each hold an ownership percentage. During the three months ended June 30, 2014, InfraServ GmbH & Co. Hoechst KG restructured the debt of a subsidiary resulting in additional equity in net earnings of affiliates of $48 million . (3) The Company accounts for its ownership interest in Sherbrooke Capital Health and Wellness, L.P. under the equity method of accounting because the Company is able to exercise significant influence. |
Schedule of Cost Method Investments | Cost method investments and ownership interests by business segment are as follows: Ownership December 31, Carrying December 31, Dividend December 31, 2015 2014 2015 2014 2015 2014 2013 (In percentages) (In $ millions) Consumer Specialties Kunming Cellulose Fibers Co. Ltd. 30 30 14 14 14 15 13 Nantong Cellulose Fibers Co. Ltd. 31 31 106 106 79 87 68 Zhuhai Cellulose Fibers Co. Ltd. 30 30 22 14 13 13 11 Other Activities InfraServ GmbH & Co. Wiesbaden KG 8 8 5 6 1 1 1 Other 4 5 — — — Total 151 145 107 116 93 |
Schedule of Transactions with Affiliates | Transactions and balances with affiliates are as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) Purchases 195 231 264 Sales — — — |
Schedule of Balances with Affiliates | As of December 31, 2015 2014 (In $ millions) Non-trade receivables 23 31 Total due from affiliates 23 31 Short-term borrowings (1) 16 16 Trade payables 34 39 Current Other liabilities 6 6 Total due to affiliates 56 61 ______________________________ (1) The Company has agreements with certain affiliates whereby excess affiliate cash is lent to and managed by the Company at variable interest rates governed by those agreements. |
Property, Plant and Equipment44
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of Property, Plant and Equipment, Net | As of December 31, 2015 2014 (In $ millions) Land 39 42 Land improvements 60 49 Buildings and building improvements 679 658 Machinery and equipment 4,609 3,910 Construction in progress 261 890 Gross asset value 5,648 5,549 Accumulated depreciation (2,039 ) (1,816 ) Net book value 3,609 3,733 |
Schedule of Assets Under Capital Leases | Assets under capital leases, net, included in the amounts above are as follows: As of December 31, 2015 2014 (In $ millions) Buildings 13 15 Machinery and equipment 289 311 Accumulated depreciation (138 ) (125 ) Net book value 164 201 |
Schedule of Capitalized Interest and Depreciation Expense | Capitalized interest costs and depreciation expense are as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) Capitalized interest 15 16 9 Depreciation expense 346 272 280 |
Goodwill and Intangible Asset45
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill Advanced Engineered Materials Consumer Specialties Industrial Specialties Acetyl Intermediates Total (In $ millions) As of December 31, 2013 303 254 43 198 798 Acquisitions ( Note 4 ) 9 — — — 9 Exchange rate changes (17 ) (14 ) (2 ) (25 ) (58 ) As of December 31, 2014 295 240 41 173 749 Acquisitions ( Note 4 ) — — — — — Exchange rate changes (13 ) (10 ) (2 ) (19 ) (44 ) As of December 31, 2015 (1) 282 230 39 154 705 ______________________________ (1) There were $0 million of accumulated impairment losses as of December 31, 2015 . |
Schedule of Finite-Lived Intangible Assets, Net | Finite-lived intangible assets are as follows: Licenses Customer- Related Intangible Assets Developed Technology Covenants Not to Compete and Other Total (In $ millions) Gross Asset Value As of December 31, 2013 33 544 30 39 646 Acquisitions ( Note 4 ) — 2 3 10 15 (1) Exchange rate changes (1 ) (51 ) — — (52 ) As of December 31, 2014 32 495 33 49 609 Acquisitions ( Note 5 ) 7 — 2 1 10 (2) Exchange rate changes (1 ) (39 ) — — (40 ) As of December 31, 2015 38 456 35 50 579 Accumulated Amortization As of December 31, 2013 (20 ) (521 ) (21 ) (25 ) (587 ) Amortization (3 ) (12 ) (3 ) (2 ) (20 ) Exchange rate changes — 50 1 — 51 As of December 31, 2014 (23 ) (483 ) (23 ) (27 ) (556 ) Amortization (3 ) (4 ) (2 ) (2 ) (11 ) Exchange rate changes 1 38 — — 39 As of December 31, 2015 (25 ) (449 ) (25 ) (29 ) (528 ) Net book value 13 7 10 21 51 ______________________________ (1) Includes intangible assets acquired from Cool Polymers, Inc. with a weighted average amortization period of seven years ( Note 4 ). Also includes intangible assets reimbursed by Mitsui ( Note 5 ) during the year ended December 31, 2014 . (2) Primarily related to intangible assets acquired by Fairway ( Note 5 ) during the year ended December 31, 2015, with a weighted average amortization period of 16 years . |
Schedule of Indefinite-Lived Intangible Assets, Net | Indefinite-lived intangible assets are as follows: Trademarks and Trade Names (In $ millions) As of December 31, 2013 83 Acquisitions ( Note 4 ) 2 Impairment loss ( Note 2 ) — Exchange rate changes (6 ) As of December 31, 2014 79 Acquisitions ( Note 4 ) — Impairment loss ( Note 2 ) — Exchange rate changes (5 ) As of December 31, 2015 74 |
Schedule of Estimated Amortization Expense | Estimated amortization expense for the succeeding five fiscal years is as follows: (In $ millions) 2016 9 2017 8 2018 5 2019 4 2020 3 |
Current Other Liabilities (Tabl
Current Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities, Current [Abstract] | |
Schedule of Current Other Liabilities | As of December 31, 2015 2014 (In $ millions) Asset retirement obligations 10 9 Benefit obligations ( Note 15 ) 31 28 Customer rebates 45 53 Derivatives ( Note 22 ) 2 13 Environmental ( Note 16 ) 11 21 Insurance 10 9 Interest 16 19 Restructuring ( Note 18 ) 30 21 Salaries and benefits 109 129 Sales and use tax/foreign withholding tax payable 13 13 Uncertain tax positions ( Note 19 ) — 59 Other 53 58 Total 330 432 |
Noncurrent Other Liabilities (T
Noncurrent Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities, Noncurrent [Abstract] | |
Schedule of Noncurrent Other Liabilities | As of December 31, 2015 2014 (In $ millions) Asset retirement obligations 26 28 Deferred proceeds 43 47 Deferred revenue 13 21 Derivatives ( Note 22 ) — 10 Environmental ( Note 16 ) 61 63 Income taxes payable 7 13 Insurance 50 51 Other 47 50 Total 247 283 |
Schedule of Changes in Asset Retirement Obligations | Changes in asset retirement obligations are as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) Balance at beginning of year 37 47 64 Additions (1) — 4 5 Accretion 1 1 2 Payments (4 ) (8 ) (23 ) Revisions to cash flow estimates (2) 2 (7 ) (2 ) Exchange rate changes — — 1 Balance at end of year 36 37 47 ______________________________ (1) Primarily relates to sites which management no longer considers to have an indeterminate life. (2) Primarily relates to revisions to the estimated cost and timing of future obligations. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | As of December 31, 2015 2014 (In $ millions) Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates Current installments of long-term debt 56 25 Short-term borrowings, including amounts due to affiliates (1) 52 77 Revolving credit facility (2) 350 — Accounts receivable securitization facility (3) 55 35 Total 513 137 ______________________________ (1) The weighted average interest rate was 3.3% and 4.7% as of December 31, 2015 and 2014 , respectively. (2) The weighted average interest rate was 1.8% and 0.0% as of December 31, 2015 and 2014 , respectively. (3) The weighted average interest rate was 0.8% and 0.7% as of December 31, 2015 and 2014 , respectively. |
Schedule of Long-term Debt | As of December 31, 2015 2014 (In $ millions) Long-Term Debt Senior credit facilities - Term C-2 loan due 2016 30 34 Senior credit facilities - Term C-3 loan due 2018 878 906 Senior unsecured notes due 2019, interest rate of 3.250% 327 364 Senior unsecured notes due 2021, interest rate of 5.875% 400 400 Senior unsecured notes due 2022, interest rate of 4.625% 500 500 Pollution control and industrial revenue bonds due at various dates through 2030, interest rates ranging from 5.7% to 6.7% 169 169 Obligations under capital leases due at various dates through 2054 238 260 Subtotal 2,542 2,633 Unamortized debt issuance costs (1) (18 ) (22 ) Current installments of long-term debt (56 ) (25 ) Total 2,468 2,586 ______________________________ (1) Related to the Company's outstanding senior credit facilities - Term C-2 and Term C-3 loans, senior unsecured notes issued in public offerings registered under the Securities Act of 1933 (collectively, the "Senior Notes") and pollution control bonds. |
Schedule of Senior Notes | The Company has outstanding Senior Notes, as follows: Senior Notes Issue Date Principal Interest Rate Interest Pay Dates Maturity Date (In millions) (In percentages) 3.250% Notes September 2014 €300 3.250 April 15 October 15 October 15, 2019 4.625% Notes November 2012 $500 4.625 March 15 September 15 November 15, 2022 5.875% Notes May 2011 $400 5.875 June 15 December 15 June 15, 2021 |
Schedule of Net Deferred Financing Costs | Net deferred financing costs are as follows: (In $ millions) As of December 31, 2012 30 Financing costs deferred (1) 2 Accelerated amortization due to refinancing activity — Amortization (5 ) As of December 31, 2013 27 Financing costs deferred (2) 10 Accelerated amortization due to refinancing activity (3) (5 ) Amortization (5 ) As of December 31, 2014 (4) 27 Financing costs deferred — Accelerated amortization due to refinancing activity — Amortization (5 ) As of December 31, 2015 (4) 22 ____________________________ (1) Relates to the September 2013 amendment to the Celanese US existing senior secured credit facilities to reduce the interest rates payable in connection with certain borrowings thereby creating the Term C-2 loan facility due 2016 . (2) Includes $6 million related to the issuance of the 3.250% Notes and $4 million related to the September 2014 amendment to the Celanese US existing senior secured credit facilities. (3) Includes $4 million related to the 6.625% Notes redemption and $1 million related to the Term C-2 loan facility conversion. (4) Includes $4 million and $5 million as of December 31, 2015 and 2014 , respectively, related to the Company's revolving credit facility and accounts receivables securitization facility, which are included in Other noncurrent assets in the consolidated balance sheets. |
Schedule of First Lien Senior Secured Leverage Ratios | The Company's amended first lien senior secured leverage ratios under the revolving credit facility are as follows: As of December 31, 2015 Maximum Estimate Estimate, if Fully Drawn 3.90 0.92 1.30 |
Schedule of Balances Available for Borrowing | The Company's balances available for borrowing are as follows: As of December 31, 2015 (In $ millions) Revolving Credit Facility Borrowings outstanding (1) 350 Letters of credit issued — Available for borrowing 550 Accounts Receivables Securitization Facility Borrowings outstanding (2) 55 Letters of credit issued 59 Available for borrowing — Total borrowing base 114 Maximum borrowing base (3) 120 ______________________________ (1) The Company borrowed $550 million and repaid $200 million during the year ended December 31, 2015 . Borrowings were primarily used to fund repurchases of the Company's Common Stock. (2) The Company borrowed $35 million and repaid $15 million during the year ended December 31, 2015 . (3) Outstanding accounts receivable transferred by the Originators to the Transferor was $131 million . On November 5, 2015, the Company reduced the maximum borrowing base from $135 million to $120 million . |
Schedule of Principle Payments | Principal payments scheduled to be made on the Company's debt, including short-term borrowings, are as follows: (In $ millions) 2016 513 2017 28 2018 882 2019 351 2020 28 Thereafter 1,197 Total 2,999 |
Benefit Obligations (Tables)
Benefit Obligations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Contributions to Multiemployer Defined Benefit Pension Plans | Contributions made by the Company to the German multiemployer plan are as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) Multiemployer defined benefit plan 6 8 8 |
Schedule of Postemployment Obligations | Postemployment obligations are as follows: As of December 31, 2015 2014 (In $ millions) Postemployment benefits 11 12 |
Schedule of Contributions to Defined Contribution Plans | The amount of costs recognized for the Company's defined contribution plans are as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) Defined contribution plans 44 40 19 |
Schedule of Company's Pension and Post Retirement Benefit Plans | Summarized information on the Company's pension and postretirement benefit plans is as follows: Pension Benefits Postretirement Benefits 2015 2014 2015 2014 (In $ millions) Change in Projected Benefit Obligation Projected benefit obligation as of beginning of period 3,915 3,799 85 136 Service cost 12 11 1 1 Interest cost 139 168 3 4 Participant contributions — — 1 5 Plan amendments — (1 ) (6 ) (5 ) Net actuarial (gain) loss (1) (141 ) 458 (8 ) 11 Settlements — (221 ) — — Benefits paid (234 ) (232 ) (5 ) (61 ) Federal subsidy on Medicare Part D — — — (2 ) Curtailments (1 ) — — — Special termination benefits 2 — — — Exchange rate changes (65 ) (68 ) (5 ) (4 ) Other 8 1 — — Projected benefit obligation as of end of period 3,635 3,915 66 85 Change in Plan Assets Fair value of plan assets as of beginning of period 2,789 2,709 — — Actual return on plan assets (67 ) 327 — — Employer contributions 59 165 4 56 Participant contributions — — 1 5 Settlements — (143 ) — — Benefits paid (2) (234 ) (232 ) (5 ) (61 ) Exchange rate changes (39 ) (37 ) — — Fair value of plan assets as of end of period 2,508 2,789 — — Funded status as of end of period (1,127 ) (1,126 ) (66 ) (85 ) Amounts Recognized in the Consolidated Balance Sheets Consist of: Noncurrent Other assets 16 16 — — Current Other liabilities (25 ) (23 ) (4 ) (5 ) Benefit obligations (1,118 ) (1,119 ) (62 ) (80 ) Net amount recognized (1,127 ) (1,126 ) (66 ) (85 ) Amounts Recognized in Accumulated Other Comprehensive Income Consist of: Net actuarial (gain) loss (3) 16 16 — — Prior service (benefit) cost (1 ) (4 ) (4 ) 3 Net amount recognized (4) 15 12 (4 ) 3 ______________________________ (1) Primarily relates to change in discount rates. (2) Includes benefit payments to nonqualified pension plans of $22 million and $22 million as of December 31, 2015 and 2014 , respectively. (3) Relates to the pension plans of the Company's equity method investments. (4) Amount shown net of an income tax benefit of $3 million and $4 million as of December 31, 2015 and 2014 , respectively, in the consolidated statements of equity ( Note 17 ). |
Schedule of Percentage of US and International Projected Benefit Obligation | The percentage of US and international projected benefit obligation at the end of the period is as follows: Pension Benefits Postretirement Benefits 2015 2014 2015 2014 (In percentages) US plans 86 85 61 59 International plans 14 15 39 41 Total 100 100 100 100 |
Schedule of Percentage of US and International Fair Value of Plan Assets | The percentage of US and international fair value of plan assets at the end of the period is as follows: Pension Benefits 2015 2014 (In percentages) US plans 87 88 International plans 13 12 Total 100 100 |
Schedule of Pension Plans with Projected Benefit Obligations in Excess of Plan Assets | Pension plans with projected benefit obligations in excess of plan assets are as follows: As of December 31, 2015 2014 (In $ millions) Projected benefit obligation 3,588 3,866 Fair value of plan assets 2,445 2,724 |
Schedule of Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets | Included in the above table are pension plans with accumulated benefit obligations in excess of plan assets as follows: As of December 31, 2015 2014 (In $ millions) Accumulated benefit obligation 3,570 3,833 Fair value of plan assets 2,442 2,713 |
Schedule of Accumulated Benefit Obligation for All Defined Benefit Pension Plans | The accumulated benefit obligation for all defined benefit pension plans is as follows: As of December 31, 2015 2014 (In $ millions) Accumulated benefit obligation 3,619 3,892 |
Schedule of Net Periodic Benefit Costs | The components of net periodic benefit cost are as follows: Pension Benefits Postretirement Benefits 2015 2014 2013 2015 2014 2013 (In $ millions) Service cost 12 11 34 1 1 2 Interest cost 139 168 154 3 4 9 Expected return on plan assets (209 ) (214 ) (223 ) — — — Amortization of prior service cost / (credit) — — 1 — (83 ) (12 ) Recognized actuarial (gain) loss 134 (1) 339 (2) (67 ) (7 ) 11 (37 ) Curtailment (gain) loss (3 ) — (61 ) — — — Settlement (gain) loss — (78 ) 9 — — — Special termination benefit 2 — — — — — Total 75 226 (153 ) (3 ) (67 ) (38 ) ______________________________ (1) Includes a gain of $62 million reflecting the incorporation of the RP-2015 mortality tables into the actuarial assumptions for the US pension plans. (2) Includes a loss of $53 million reflecting the incorporation of the RP-2014 mortality tables into the actuarial assumptions for the US pension plans. |
Schedule of Amortization of Accumulated Other Comprehensive Income (Loss), Net Into Net Periodic Benefit Cost | Amortization of Accumulated other comprehensive income (loss), net into net periodic benefit cost in 2016 is expected to be as follows: Pension Benefits Postretirement Benefits (In $ millions) Prior service cost — (3 ) |
Schedule of Nonqualified Pension Plans Funded with Nonqualified Trusts | The Company maintains nonqualified pension plans funded with nonqualified trusts for certain US employees as follows: As of December 31, 2015 2014 (In $ millions) Nonqualified Trust Assets Marketable securities, at fair value 30 32 Noncurrent Other assets, consisting of insurance contracts 55 56 Nonqualified Pension Obligations Current Other liabilities 22 22 Benefit obligations 246 268 |
Schedule of Expense Related to Nonqualified Pension Plans Included in Net Periodic Benefit Cost, Excluding Returns on Assets | Expense relating to the nonqualified pension plans included in net periodic benefit cost, excluding returns on the assets held by the nonqualified trusts, is as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) Total — (1) 43 6 ______________________________ (1) Actuarial gain offset interest cost. |
Schedule of Principle Weighted Average Assumptions Used to Determine Benefit Obligations and Benefit Cost | The principal weighted average assumptions used to determine benefit obligation are as follows: Pension Benefits Postretirement Benefits 2015 2014 2015 2014 (In percentages) Discount Rate Obligations US plans 4.2 3.9 4.0 3.7 International plans 2.6 2.4 3.6 3.5 Combined 4.0 3.7 3.7 3.6 Rate of Compensation Increase US plans N/A N/A International plans 2.7 2.8 Combined 2.7 2.8 The principal weighted average assumptions used to determine net periodic benefit cost are as follows: Pension Benefits Postretirement Benefits 2015 2014 2013 2015 2014 2013 (In percentages) Discount Rate Obligations US plans 3.9 4.7 3.8 3.7 4.3 3.4 International plans 2.4 3.7 3.6 3.5 4.5 3.8 Combined 3.7 4.6 3.8 3.6 4.4 3.5 Expected Return on Plan Assets US plans 8.0 8.5 8.5 International plans 6.0 6.2 5.8 Combined 7.8 8.2 8.0 Rate of Compensation Increase US plans N/A 3.0 4.0 International plans 2.8 2.8 2.9 Combined 2.8 3.0 3.8 |
Schedule of Health Care Cost Trend Rates | The Company's health care cost trend assumptions for US postretirement medical plan's net periodic benefit cost are as follows: As of December 31, 2015 2014 2013 (In percentages, except year) Health care cost trend rate assumed for next year 10.0 7.0 7.5 Health care cost trend ultimate rate 5.0 5.0 5.0 Health care cost trend ultimate rate year 2026 2020 2017 |
Schedule of Impact of One-Percentage-Point Change in Assumed Health Care Cost Trend | The impact of a one percentage point change in the assumed health care cost trend is as follows: Trend Rate Change Decreases 1% Increases 1% (In $ millions) Postretirement obligations 2 2 Service and interest cost — — |
Schedule of Weighted Average Target Asset Allocations | The weighted average target asset allocations for the Company's pension plans in 2015 are as follows: US Plans International Plans (In percentages) Bonds - domestic to plans 54 71 Equities - domestic to plans 26 19 Equities - international to plans 20 3 Other — 7 Total 100 100 |
Schedule of Fair Values of Pension Plan Assets | Fair Value Measurement Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Total As of December 31, 2015 2014 2015 2014 2015 2014 (In $ millions) Assets Cash and cash equivalents 4 6 — — 4 6 Derivatives Swaps — — 25 275 25 275 Other — — — 2 — 2 Equity securities US companies 241 249 — — 241 249 International companies 327 383 — — 327 383 Fixed income Corporate debt — — 692 639 692 639 Treasuries, other debt 25 49 742 708 767 757 Mortgage backed securities — — 5 31 5 31 Securities lending collateral — 6 — — — 6 Insurance contracts — — 32 34 32 34 Other 18 16 — 2 18 18 Total investments, at fair value (1) 615 709 1,496 1,691 2,111 2,400 Liabilities Derivatives Swaps — — 25 270 25 270 Other — — — 2 — 2 Obligations under securities lending — 6 — — — 6 Total liabilities — 6 25 272 25 278 Total net assets (2) 615 703 1,471 1,419 2,086 2,122 ______________________________ (1) In accordance with ASU 2015-07 ( Note 2 ), certain investments that are measured at fair value using the NAV per share practical expedient have not been classified in the fair value hierarchy. Total investments, at fair value, for the year ended December 31, 2015 excludes investments in common/collective trusts, registered investment companies and short-term investment funds with fair values of $251 million , $117 million and $43 million , respectively. Total investments, at fair value, for the year ended December 31, 2014 excludes investments in common/collective trusts, registered investment companies and short-term investment funds with fair values of $278 million , $133 million and $263 million , respectively. (2) Total net assets excludes non-financial plan receivables and payables of $25 million and $14 million , respectively, as of December 31, 2015 and $19 million and $26 million , respectively, as of December 31, 2014 . Non-financial items include due to/from broker, interest receivables and accrued expenses. |
Schedule of Company Commitments to Fund Benefit Obligations | Benefit obligation funding is as follows: Total Expected 2016 (In $ millions) Cash contributions to defined benefit pension plans 23 Benefit payments to nonqualified pension plans 22 Benefit payments to other postretirement benefit plans 5 |
Schedule of Pension Benefits Expected to be Paid from the Plans or From the Company's Assets | Pension benefits and postretirement benefit cost expected to be paid are as follows: Pension Benefit Payments (1) Company Portion of Postretirement Benefit Cost (2) (In $ millions) 2016 231 5 2017 230 5 2018 229 5 2019 228 4 2020 227 4 2021-2025 1,111 21 ______________________________ (1) Payments are expected to be made primarily from plan assets. (2) Payments are expected to be made primarily from Company assets. |
Environmental (Tables)
Environmental (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of Environmental Remediation Reserves | The components of environmental remediation reserves are as follows: As of December 31, 2015 2014 (In $ millions) Demerger obligations ( Note 24 ) 22 25 Divestiture obligations ( Note 24 ) 17 21 Active sites 18 23 US Superfund sites 13 12 Other environmental remediation reserves 2 3 Total 72 84 |
Schedule of Environmental Ownership and Liability Percentages | The Company's ownership interest and environmental liability participation percentages for such liabilities, which cannot be attributed to an InfraServ partner are as follows: As of December 31, 2015 Ownership Liability Reserves (1) (In percentages) (In $ millions) InfraServ GmbH & Co. Gendorf KG 39 10 10 InfraServ GmbH & Co. Hoechst KG 32 40 64 InfraServ GmbH & Co. Knapsack KG 27 22 1 ______________________________ (1) Gross reserves maintained by the respective InfraServ entity. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Dividend Increases | The Company's Board of Directors approved increases in the Company's Common Stock cash dividend rates as follows: Increase Quarterly Common Stock Cash Dividend Annual Common Stock Cash Dividend Effective Date (In percentages) (In $ per share) April 2013 20 0.090 0.36 May 2013 July 2013 100 0.180 0.72 August 2013 April 2014 39 0.250 1.00 May 2014 April 2015 20 0.300 1.20 May 2015 |
Schedule of Treasury Stock | These authorizations give management discretion in determining the timing and conditions under which shares may be repurchased. This repurchase program does not have an expiration date. The share repurchase activity pursuant to this authorization is as follows: Year Ended December 31, Total From 2015 2014 2013 Shares repurchased 6,640,601 (1) 4,338,488 3,186,180 (1) 27,307,796 Average purchase price per share $ 63.31 $ 57.61 $ 51.38 $ 48.90 Amount spent on repurchased shares (in millions) $ 420 $ 250 $ 164 $ 1,335 Aggregate Board of Directors repurchase authorizations during the period (in millions) (2) $ 1,000 $ 473 $ — $ 2,366 ______________________________ (1) The years ended December 31, 2015 and 2013 exclude 9,264 and 6,021 shares, respectively, withheld from an executive officer to cover statutory minimum withholding requirements for personal income taxes related to the vesting of restricted stock. Restricted stock awards are considered outstanding at the time of issuance. Accordingly, the shares withheld are treated as treasury shares. (2) These authorizations give management discretion in determining the timing and conditions under which shares may be repurchased. This repurchase program began in February 2008 and does not have an expiration date. In September 2015 , the Board of Directors approved a new $1.0 billion share repurchase authorization. |
Schedule of Components of Other Comprehensive Income (Loss), Net | Year Ended December 31, 2015 2014 2013 Gross Amount Income Tax (Provision) Benefit Net Amount Gross Amount Income Tax (Provision) Benefit Net Amount Gross Amount Income Tax (Provision) Benefit Net Amount (In $ millions) Unrealized gain (loss) on marketable securities — — — — 1 1 1 — 1 Foreign currency translation (193 ) 5 (188 ) (188 ) 40 (148 ) 55 (35 ) 20 Gain (loss) on cash flow hedges 3 (1 ) 2 — 40 40 9 (3 ) 6 Pension and postretirement benefits 4 (1 ) 3 (84 ) 30 (54 ) 88 (30 ) 58 Total (186 ) 3 (183 ) (272 ) 111 (161 ) 153 (68 ) 85 |
Schedule of Adjustments to Accumulated Other Comprehensive Income (Loss), Net | Adjustments to Accumulated other comprehensive income (loss), net, are as follows: Unrealized Gain (Loss) on Marketable Securities ( Note 6 ) Foreign Currency Translation Gain (Loss) from Cash Flow Hedges ( Note 22 ) Pension and Postretirement Benefits ( Note 15 ) Accumulated Other Comprehensive Income (Loss), Net (In $ millions) As of December 31, 2012 (1 ) (23 ) (50 ) (15 ) (89 ) Other comprehensive income (loss) before reclassifications 1 55 (2 ) 99 153 Amounts reclassified from accumulated other comprehensive income (loss) — — 11 (11 ) — Income tax (provision) benefit — (35 ) (3 ) (30 ) (68 ) As of December 31, 2013 — (3 ) (44 ) 43 (4 ) Other comprehensive income (loss) before reclassifications — (188 ) (9 ) (1 ) (198 ) Amounts reclassified from accumulated other comprehensive income (loss) — — 9 (83 ) (74 ) Income tax (provision) benefit 1 40 40 30 111 As of December 31, 2014 1 (151 ) (4 ) (11 ) (165 ) Other comprehensive income (loss) before reclassifications — (193 ) (2 ) 6 (189 ) Amounts reclassified from accumulated other comprehensive income (loss) — — 5 (2 ) 3 Income tax (provision) benefit — 5 (1 ) (1 ) 3 As of December 31, 2015 1 (339 ) (2 ) (8 ) (348 ) |
Other (Charges) Gains, Net (Tab
Other (Charges) Gains, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Other (Charges) Gains, Net | Year Ended December 31, 2015 2014 2013 (In $ millions) Employee termination benefits ( Note 4 ) (53 ) (1) (7 ) (23 ) Kelsterbach plant relocation ( Note 4 ) — — (13 ) Asset impairments (126 ) — (81 ) Other plant/office closures — 2 (33 ) Singapore contract termination (174 ) — — Commercial disputes 2 11 (8 ) Other — 9 — Total (351 ) 15 (158 ) ______________________________ (1) Includes $1 million of special termination benefits included in Benefit obligations in the consolidated balance sheet as of December 31, 2015 and is included in the Company's Industrial Specialties segment. |
Schedule of Restructuring Reserve | The changes in the restructuring reserves by business segment are as follows: Advanced Engineered Materials Consumer Specialties Industrial Specialties Acetyl Intermediates Other Total (In $ millions) Employee Termination Benefits As of December 31, 2013 4 3 2 16 4 29 Additions 1 1 1 4 — 7 Cash payments (1 ) (3 ) (2 ) (14 ) (1 ) (21 ) Other changes — — — — — — Exchange rate changes — — — (1 ) — (1 ) As of December 31, 2014 4 1 1 5 3 14 Additions 7 25 9 2 9 52 Cash payments (4 ) (12 ) (4 ) (5 ) (3 ) (28 ) Other changes (3 ) — — — (3 ) (6 ) Exchange rate changes (1 ) — — (1 ) — (2 ) As of December 31, 2015 3 14 6 1 6 30 Other Plant/Office Closures As of December 31, 2013 — — — 33 — 33 Additions — — — — — — Cash payments — — — (9 ) — (9 ) Other changes — — — (15 ) (1) — (15 ) Exchange rate changes — — — (2 ) — (2 ) As of December 31, 2014 — — — 7 — 7 Additions — — — — — — Cash payments — — — (6 ) — (6 ) Other changes — — — — — — Exchange rate changes — — — (1 ) — (1 ) As of December 31, 2015 — — — — — — Total 3 14 6 1 6 30 ______________________________ (1) Includes a $13 million non-cash reduction to take-or-pay contract termination penalties. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Earnings (Loss) from Continuing Operations Before Tax by Jurisdiction | Earnings (loss) from continuing operations before tax by jurisdiction are as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) US 231 534 806 International (1) 257 407 803 Total 488 941 1,609 ______________________________ (1) Includes aggregate earnings generated by operations in Bermuda, Luxembourg, the Netherlands and Hong Kong of $330 million , $308 million and $275 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, which have an aggregate effective income tax rate of 6.1% , 4.8% and 4.0% for each year, respectively. |
Schedule of Income Tax Provision (Benefit) | The income tax provision (benefit) consists of the following: Year Ended December 31, 2015 2014 2013 (In $ millions) Current US 28 108 78 International 152 56 83 Total 180 164 161 Deferred US 54 156 194 International (33 ) (6 ) 153 Total 21 150 347 Total 201 314 508 |
Schedule of Effective Tax Rate Reconciliation | A reconciliation of the significant differences between the US federal statutory tax rate of 35% and the effective income tax rate on income from continuing operations is as follows: Year Ended December 31, 2015 2014 2013 (In $ millions, except percentages) Income tax provision computed at US federal statutory tax rate 171 329 563 Change in valuation allowance 124 49 89 Equity income and dividends (33 ) (50 ) (44 ) (Income) expense not resulting in tax impact, net (32 ) (34 ) (33 ) US tax effect of foreign earnings and dividends 15 49 35 Foreign tax credits (4 ) (34 ) (38 ) Other foreign tax rate differentials (41 ) (33 ) (55 ) Legislative changes — — (19 ) Tax-deductible interest on foreign equity investments and other related items — 12 11 State income taxes, net of federal benefit 6 9 11 Other, net (5 ) 17 (12 ) Income tax provision (benefit) 201 314 508 Effective income tax rate 41 % 33 % 32 % |
Schedule of Consolidated Deferred Tax Assets and Liabilities | Significant components of the consolidated deferred tax assets and liabilities are as follows: As of December 31, 2015 2014 (In $ millions) Deferred Tax Assets Pension and postretirement obligations 434 424 Accrued expenses 40 41 Inventory 14 10 Net operating loss 683 468 Tax credit carryforwards 88 100 Other 202 165 Subtotal 1,461 1,208 Valuation allowance (1) (448 ) (413 ) Total 1,013 795 Deferred Tax Liabilities Depreciation and amortization 380 416 Investments in affiliates 395 143 Other 114 102 Total 889 661 Net deferred tax assets (liabilities) 124 134 ______________________________ (1) Includes deferred tax asset valuation allowances for the Company's deferred tax assets in the US, Luxembourg, Spain, China, Singapore, the United Kingdom, Canada and France . These valuation allowances relate primarily to net operating loss carryforward benefits and other net deferred tax assets, all of which may not be realizable. |
Schedule of Activity Related to Uncertain Tax Positions | Activity related to uncertain tax positions is as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) As of the beginning of the year 228 244 218 Increases in tax positions for the current year 13 7 3 Increases in tax positions for prior years 76 24 57 Decreases in tax positions for prior years (126 ) (46 ) (32 ) Decreases due to settlements (33 ) (1 ) (2 ) As of the end of the year 158 228 244 Total uncertain tax positions that if recognized would impact the effective tax rate 144 245 258 Total amount of interest expense (benefit) and penalties recognized in the consolidated statements of operations (12 ) (1) 2 12 Total amount of interest expense and penalties recognized in the consolidated balance sheets 43 67 65 ______________________________ (1) This amount reflects interest on uncertain tax positions, the impact of currency and release of certain tax positions as a result of audit closure that was reflected in the consolidated statements of operations. In addition, the Company also paid an additional $12 million of previously accrued amounts due to settlements of tax examinations. |
Management Compensation Plans (
Management Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Total Shares Available for and Subject to Awards | Total shares available for awards and total shares subject to outstanding awards are as follows: As of December 31, 2015 Shares Available for Awards Shares Subject to Outstanding Awards 2009 GIP 6,949,926 2,736,369 2004 Stock Incentive Plan — 94,500 (1) ______________________________ (1) No RSUs remain outstanding under the 2004 Stock Incentive Plan. |
Schedule of Realized Income Tax Benefits from Stock Option Exercises and RSU Vestings | The Company realized income tax benefits from stock option exercises and RSU vestings as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) Income tax benefit realized 2 2 2 Amount reversed in current year related to prior year — — — |
Schedule of Summary of Changes in Stock Options Outstanding | The summary of changes in stock options outstanding is as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (In thousands) (In $) (In years) (In $ millions) As of December 31, 2014 343 33.72 3.2 7 Granted — — Exercised (94 ) 29.82 Forfeited — — Expired — — As of December 31, 2015 249 35.19 2.4 9 Options exercisable at end of year 239 34.74 2.3 9 |
Schedule of Black-Scholes Option Pricing Method Assumptions | The weighted average assumptions used in the Black-Scholes option pricing method for stock option grants are as follows: Year Ended December 31, 2015 2014 2013 Risk-free interest rate N/A N/A 0.68 % Estimated life in years N/A N/A 4.50 Dividend yield N/A N/A 0.64 % Volatility N/A N/A 49.50 % |
Schedule of Intrinsic Value of Stock Options Exercises | The total intrinsic value of stock options exercised is as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) Intrinsic value 4 7 6 |
Schedule of Summary of Changes in Performance-based RSUs Outstanding | A summary of changes in nonvested performance-based RSUs outstanding is as follows: Number of Units Weighted Average Grant Date Fair Value (In thousands) (In $) As of December 31, 2014 1,027 48.02 Granted 514 53.13 Additional performance-based RSUs granted (1) 253 47.32 Vested (506 ) 47.32 Canceled — — Forfeited (57 ) 49.12 As of December 31, 2015 1,231 50.24 ______________________________ (1) Represents additional performance-based RSU grants in 2013 that were awarded in 2015 as a result of achieving internal profitability targets. |
Schedule of Summary of Changes in Time-based RSUs Outstanding | A summary of changes in nonvested time-based RSUs outstanding is as follows: Employee Time-Based RSUs Director Time-Based RSUs Number of Units Weighted Average Grant Date Fair Value Number of Units Weighted Average Grant Date Fair Value (In thousands) (In $) (In thousands) (In $) As of December 31, 2014 112 45.87 19 58.48 Granted 75 63.67 14 64.94 Vested (81 ) 43.10 (19 ) 58.48 Forfeited (1 ) 48.15 — — As of December 31, 2015 105 60.78 14 64.94 |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Weighted Average Grant Date Fair Values of Stock Options | The weighted average grant date fair value of stock options granted is as follows: Year Ended December 31, 2015 2014 2013 (In $) Total N/A N/A 18.50 |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Fair Value of Shares Vested | The fair value of shares vested for performance-based RSUs is as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) Total 27 — 10 |
Time Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Fair Value of Shares Vested | The fair value of shares vested for time-based RSUs is as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) Total 6 9 12 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments for Capital Leases | Future minimum lease payments under non-cancelable rental and lease agreements, which have initial or remaining terms in excess of one year are as follows: As of December 31, 2015 Capital Leases (In $ millions) 2016 46 2017 46 2018 45 2019 45 2020 45 Later years 195 Sublease income — Minimum lease commitments 422 Less amounts representing interest (184 ) Present value of net minimum lease obligations 238 |
Schedule of Future Minimum Rental Payments for Operating Leases | As of December 31, 2015 Operating Leases (In $ millions) 2016 66 2017 43 2018 34 2019 31 2020 23 Later years 97 Sublease income (3 ) Minimum lease commitments 291 |
Schedule of Rent Expense | Rent expense recorded under all operating leases is as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) Total 154 161 160 |
Derivative Financial Instrume56
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Swap Derivatives | The Company fixes the LIBOR portion of its US dollar denominated variable rate borrowings ( Note 14 ) with interest rate swap derivative arrangements as follows: As of December 31, 2015 Notional Value Effective Date Expiration Date Fixed Rate (In $ millions) (In percentages) 500 January 2, 2014 January 2, 2016 0.94 As of December 31, 2014 Notional Value Effective Date Expiration Date Fixed Rate (In $ millions) (In percentages) 500 January 2, 2014 January 2, 2016 1.02 |
Schedule of Notional Amounts of Net Foreign Exchange Exposure by Currency | The total US dollar equivalents of net foreign exchange exposure related to (short) long foreign exchange forward contracts outstanding by currency are as follows: 2016 Maturity (In $ millions) Currency Brazilian real (10 ) British pound sterling (88 ) Canadian dollar 25 Euro 127 Hungarian forint 8 Korean won 9 Mexican peso (31 ) Singapore dollar 22 Swedish krona 8 Total 70 |
Schedule of Notional Amounts of Foreign Currency Derivatives | Gross notional values of the foreign currency forwards and swaps are as follows: As of December 31, 2015 2014 (In $ millions) Total 502 1,336 |
Schedule of Derivatives Instruments Activity | Hedging activity for interest rate swaps and cross-currency swaps is as follows: Year Ended December 31, Statement of Operations Classification 2015 2014 2013 (In $ millions) Hedging activities 2 (4 ) (11 ) Interest income (expense) Ineffective portion of hedging activities — — — Other income (expense), net |
Schedule of Changes in Fair Value of Derivatives | Information regarding changes in the fair value of the Company's derivative and non-derivative instruments is as follows: Gain (Loss) Recognized in Other Comprehensive Income (Loss) Gain (Loss) Recognized in Earnings (Loss) Statement of Operations Classification Year Ended December 31, Year Ended December 31, 2015 2014 2013 2015 2014 2013 (In $ millions) Designated as Cash Flow Hedges Interest rate swaps — (1 ) (2 ) — (4 ) (11 ) Interest expense Cross-currency swaps — (8 ) — 46 46 — Other income (expense), net or Interest expense Total — (9 ) (2 ) 46 42 (11 ) Designated as a Net Investment Hedge 3.250% Notes 38 23 — — — — Foreign currency translation Term C-2 and Term C-3 loans (2) 10 — — — — — Foreign currency translation Total 48 23 — — — — Not Designated as Hedges Interest rate swaps — — — (1 ) (3 ) (1) — Interest expense Foreign currency forwards and swaps — — — (82 ) (15 ) (23 ) Foreign exchange gain (loss), net or Other income (expense), net Total — — — (83 ) (18 ) (23 ) ______________________________ (1) In December 2014, the Company dedesignated as cash flow hedges a notional value of $500 million US dollar interest rate swap agreements expiring January 2, 2016 . (2) During the three months ended March 31, 2015, the Company designated the Euro-based principal amount of its Term C-2 loan and its Term C-3 loan as a net investment hedge of its investment in a wholly-owned international subsidiary whose functional currency is the Euro to mitigate the volatility caused by the changes in foreign currency exchange rates of the Euro with respect to the US dollar. During the three months ended December 31, 2015 , the Company dedesignated the Euro-based principal amount of its Term C-3 loan as a net investment hedge. |
Offsetting Assets | Information regarding the gross amounts of the Company's derivative instruments and the amounts offset in the consolidated balance sheets is as follows: As of December 31, 2015 2014 (In $ millions) Derivative Assets Gross amount recognized 2 55 Gross amount offset in the consolidated balance sheets — — Net amount presented in the consolidated balance sheets 2 55 Gross amount not offset in the consolidated balance sheets — 4 Net amount 2 51 |
Offsetting Liabilities | As of December 31, 2015 2014 (In $ millions) Derivative Liabilities Gross amount recognized 2 23 Gross amount offset in the consolidated balance sheets — — Net amount presented in the consolidated balance sheets 2 23 Gross amount not offset in the consolidated balance sheets — 4 Net amount 2 19 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Fair Value Measurement Balance Sheet Classification Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Total As of December 31, 2015 2014 2015 2014 2015 2014 (In $ millions) Derivatives Designated as Cash Flow Hedges Cross-currency swaps — — — 9 — 9 Current Other assets Cross-currency swaps — — — 43 — 43 Noncurrent Other assets Derivatives Not Designated as Hedges Foreign currency forwards and swaps — — 2 3 2 3 Current Other assets Total assets — — 2 55 2 55 Derivatives Designated as Cash Flow Hedges Cross-currency swaps — — — (2 ) — (2 ) Current Other liabilities Cross-currency swaps — — — (10 ) — (10 ) Noncurrent Other liabilities Designated as a Net Investment Hedge 3.250% Notes (1) — — — — — — Long-term Debt Term C-2 and Term C-3 loans (1) — — — — — — Long-term Debt Derivatives Not Designated as Hedges Interest rate swaps — — — (4 ) — (4 ) Current Other liabilities Foreign currency forwards and swaps — — (2 ) (7 ) (2 ) (7 ) Current Other liabilities Total liabilities — — (2 ) (23 ) (2 ) (23 ) ______________________________ (1) Included in the consolidated balance sheets at carrying amount. During the three months ended December 31, 2015 , the Company dedesignated the Euro-based principal amount of its Term C-3 loan as a net investment hedge. |
Schedule of Carrying Values and Fair Values of Financial Instruments | Carrying values and fair values of financial instruments that are not carried at fair value are as follows: Fair Value Measurement Carrying Amount Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total As of December 31, 2015 2014 2015 2014 2015 2014 2015 2014 (In $ millions) Cost investments 151 145 — — — — — — Insurance contracts in nonqualified trusts 55 56 55 56 — — 55 56 Long-term debt, including current installments of long-term debt 2,542 2,633 2,348 2,398 238 260 2,586 2,658 |
Supplemental Cash Flow Inform58
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Supplemental Cash Flow Information | Year Ended December 31, 2015 2014 2013 (In $ millions) Interest paid, net of amounts capitalized 120 146 166 Taxes paid, net of refunds 151 199 129 Noncash Investing and Financing Activities Accrued capital expenditures (37 ) 3 38 Accrued Kelsterbach capital expenditures ( Note 4 ) — — (2 ) Asset retirement obligations 3 4 9 Capital expenditure reimbursement — 4 — Capital lease obligations 6 22 28 Contingent consideration ( Note 4 ) — 8 — Distribution to noncontrolling interest ( Note 5 ) (4 ) — — Lease incentives — — 3 Mitsui reimbursement — 70 (70 ) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Business Segments | Advanced Engineered Materials Consumer Specialties Industrial Specialties Acetyl Intermediates Other Activities Eliminations Consolidated (In $ millions) Year Ended December 31, 2015 Net sales 1,326 969 (1) 1,082 2,744 (2) — (447 ) 5,674 Other (charges) gains, net (7 ) (25 ) (10 ) (300 ) (9 ) — (351 ) Operating profit (loss) 235 262 72 (3 ) (240 ) — 326 Equity in net earnings (loss) of affiliates 150 2 — 6 23 — 181 Depreciation and amortization 99 60 64 123 (3) 11 — 357 Capital expenditures 73 65 56 282 7 — 483 (4) As of December 31, 2015 Goodwill and intangible assets, net 338 249 49 194 — — 830 Total assets 2,324 1,458 747 2,387 1,670 — 8,586 Year Ended December 31, 2014 Net sales 1,459 1,160 (1) 1,224 3,493 (2) — (534 ) 6,802 Other (charges) gains, net (1 ) 16 (1 ) (3 ) 4 — 15 Operating profit (loss) 221 388 76 558 (485 ) — 758 Equity in net earnings (loss) of affiliates 161 9 — 20 56 — 246 Depreciation and amortization 106 43 50 81 12 — 292 Capital expenditures 65 103 29 478 6 — 681 (4) As of December 31, 2014 Goodwill and intangible assets, net 358 261 54 208 — — 881 Total assets 2,484 1,491 823 2,495 1,503 — 8,796 Year Ended December 31, 2013 Net sales 1,352 1,214 (1) 1,155 3,241 (2) — (452 ) 6,510 Other (charges) gains, net (13 ) — (4 ) (141 ) — — (158 ) Operating profit (loss) 904 346 64 153 41 — 1,508 Equity in net earnings (loss) of affiliates 148 3 — 5 24 — 180 Depreciation and amortization 110 41 52 86 16 — 305 Capital expenditures 67 116 33 184 8 — 408 (5) ______________________________ (1) Includes intersegment sales of $0 million , $2 million and $4 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. (2) Includes intersegment sales of $447 million , $532 million and $448 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. (3) See Note 4 - Acquisitions, Dispositions and Plant Closures for further information. (4) Includes a decrease in accrued capital expenditures of $37 million and an increase of $3 million for the years ended December 31, 2015 and 2014 , respectively. (5) Excludes expenditures related to the relocation of the Company's POM operations in Germany ( Note 4 ) and includes an increase in accrued capital expenditures of $38 million for the year ended December 31, 2013 . |
Schedule of Geographical Segments | The net sales based on the geographic location of the Company's facilities are as follows: Year Ended December 31, 2015 2014 2013 (In $ millions) Belgium 417 480 525 Canada 162 204 249 China 800 996 863 Germany 1,779 2,156 2,049 Mexico 204 259 256 Singapore 703 632 578 US 1,463 1,899 1,808 Other 146 176 182 Total 5,674 6,802 6,510 Property, plant and equipment, net based on the geographic location of the Company's facilities is as follows: As of December 31, 2015 2014 (In $ millions) Belgium 56 66 Canada 137 138 China 417 593 Germany 931 1,084 Mexico 156 151 Singapore 68 50 US 1,774 1,563 Other 70 88 Total 3,609 3,733 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) Per Share | Year Ended December 31, 2015 2014 2013 (In $ millions, except share data) Amounts attributable to Celanese Corporation Earnings (loss) from continuing operations 306 631 1,101 Earnings (loss) from discontinued operations (2 ) (7 ) — Net earnings (loss) 304 624 1,101 Weighted average shares - basic 150,838,050 155,012,370 158,801,150 Incremental shares attributable to equity awards (1) 1,449,905 1,154,623 533,069 Weighted average shares - diluted 152,287,955 156,166,993 159,334,219 ______________________________ (1) Excludes 2,903 , 0 and 40,306 equity award shares for the years ended December 31, 2015 , 2014 and 2013 , respectively, as their effect would have been antidilutive. |
Consolidating Guarantor Finan61
Consolidating Guarantor Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Consolidating Guarantor Financial Information [Abstract] | |
Schedule of Consolidating Statements of Operations | CELANESE CORPORATION AND SUBSIDIARIES CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2015 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net sales — — 2,410 4,485 (1,221 ) 5,674 Cost of sales — — (1,729 ) (3,897 ) 1,270 (4,356 ) Gross profit — — 681 588 49 1,318 Selling, general and administrative expenses — — (242 ) (264 ) — (506 ) Amortization of intangible assets — — (5 ) (6 ) — (11 ) Research and development expenses — — (78 ) (41 ) — (119 ) Other (charges) gains, net — — (5 ) (346 ) — (351 ) Foreign exchange gain (loss), net — — — 4 — 4 Gain (loss) on disposition of businesses and assets, net — — (6 ) (3 ) — (9 ) Operating profit (loss) — — 345 (68 ) 49 326 Equity in net earnings (loss) of affiliates 302 314 84 162 (681 ) 181 Interest expense — (77 ) (76 ) (36 ) 70 (119 ) Refinancing expense — — — — — — Interest income — 18 40 13 (70 ) 1 Dividend income - cost investments — — — 107 — 107 Other income (expense), net — (2 ) 2 (8 ) — (8 ) Earnings (loss) from continuing operations before tax 302 253 395 170 (632 ) 488 Income tax (provision) benefit 2 49 (133 ) (98 ) (21 ) (201 ) Earnings (loss) from continuing operations 304 302 262 72 (653 ) 287 Earnings (loss) from operation of discontinued operations — — (3 ) — — (3 ) Gain (loss) on disposition of discontinued operations — — — — — — Income tax (provision) benefit from discontinued operations — — 1 — — 1 Earnings (loss) from discontinued operations — — (2 ) — — (2 ) Net earnings (loss) 304 302 260 72 (653 ) 285 Net (earnings) loss attributable to noncontrolling interests — — — 19 — 19 Net earnings (loss) attributable to Celanese Corporation 304 302 260 91 (653 ) 304 CELANESE CORPORATION AND SUBSIDIARIES CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2014 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net sales — — 2,860 5,166 (1,224 ) 6,802 Cost of sales — — (1,822 ) (4,550 ) 1,186 (5,186 ) Gross profit — — 1,038 616 (38 ) 1,616 Selling, general and administrative expenses — — (313 ) (445 ) — (758 ) Amortization of intangible assets — — (7 ) (13 ) — (20 ) Research and development expenses — — (47 ) (39 ) — (86 ) Other (charges) gains, net — — 28 (13 ) — 15 Foreign exchange gain (loss), net — — — (2 ) — (2 ) Gain (loss) on disposition of businesses and assets, net — — (11 ) 4 — (7 ) Operating profit (loss) — — 688 108 (38 ) 758 Equity in net earnings (loss) of affiliates 622 806 90 210 (1,482 ) 246 Interest expense — (190 ) (22 ) (78 ) 143 (147 ) Refinancing expense — (29 ) — — — (29 ) Interest income — 57 72 15 (143 ) 1 Dividend income - cost investments — — — 116 — 116 Other income (expense), net — — 4 (8 ) — (4 ) Earnings (loss) from continuing operations before tax 622 644 832 363 (1,520 ) 941 Income tax (provision) benefit 2 (22 ) (237 ) (71 ) 14 (314 ) Earnings (loss) from continuing operations 624 622 595 292 (1,506 ) 627 Earnings (loss) from operation of discontinued operations — — (8 ) (3 ) — (11 ) Gain (loss) on disposition of discontinued operations — — — — — — Income tax (provision) benefit from discontinued operations — — 3 1 — 4 Earnings (loss) from discontinued operations — — (5 ) (2 ) — (7 ) Net earnings (loss) 624 622 590 290 (1,506 ) 620 Net (earnings) loss attributable to noncontrolling interests — — — 4 — 4 Net earnings (loss) attributable to Celanese Corporation 624 622 590 294 (1,506 ) 624 CELANESE CORPORATION AND SUBSIDIARIES CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2013 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net sales — — 2,799 4,911 (1,200 ) 6,510 Cost of sales — — (1,827 ) (4,531 ) 1,213 (5,145 ) Gross profit — — 972 380 13 1,365 Selling, general and administrative expenses — — 53 (364 ) — (311 ) Amortization of intangible assets — — (11 ) (21 ) — (32 ) Research and development expenses — — (53 ) (32 ) — (85 ) Other (charges) gains, net — — 2 (156 ) (4 ) (158 ) Foreign exchange gain (loss), net — — — (6 ) — (6 ) Gain (loss) on disposition of businesses and assets, net — — (2 ) 737 — 735 Operating profit (loss) — — 961 538 9 1,508 Equity in net earnings (loss) of affiliates 1,096 1,180 116 158 (2,370 ) 180 Interest expense — (192 ) (34 ) (70 ) 124 (172 ) Refinancing expense — (1 ) — — — (1 ) Interest income — 55 65 5 (124 ) 1 Dividend income - cost investments — — — 93 — 93 Other income (expense), net — — (52 ) 52 — — Earnings (loss) from continuing operations before tax 1,096 1,042 1,056 776 (2,361 ) 1,609 Income tax (provision) benefit 5 54 (326 ) (229 ) (12 ) (508 ) Earnings (loss) from continuing operations 1,101 1,096 730 547 (2,373 ) 1,101 Earnings (loss) from operation of discontinued operations — — 2 (2 ) — — Gain (loss) on disposition of discontinued operations — — — — — — Income tax (provision) benefit from discontinued operations — — (1 ) 1 — — Earnings (loss) from discontinued operations — — 1 (1 ) — — Net earnings (loss) 1,101 1,096 731 546 (2,373 ) 1,101 Net (earnings) loss attributable to noncontrolling interests — — — — — — Net earnings (loss) attributable to Celanese Corporation 1,101 1,096 731 546 (2,373 ) 1,101 |
Schedule of Consolidating Statements of Comprehensive Income (Loss) | CELANESE CORPORATION AND SUBSIDIARIES CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2015 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net earnings (loss) 304 302 260 72 (653 ) 285 Other comprehensive income (loss), net of tax Unrealized gain (loss) on marketable securities — — — — — — Foreign currency translation (188 ) (188 ) (181 ) (231 ) 600 (188 ) Gain (loss) from cash flow hedges 2 2 5 1 (8 ) 2 Pension and postretirement benefits 3 3 3 2 (8 ) 3 Total other comprehensive income (loss), net of tax (183 ) (183 ) (173 ) (228 ) 584 (183 ) Total comprehensive income (loss), net of tax 121 119 87 (156 ) (69 ) 102 Comprehensive (income) loss attributable to noncontrolling interests — — — 19 — 19 Comprehensive income (loss) attributable to Celanese Corporation 121 119 87 (137 ) (69 ) 121 CELANESE CORPORATION AND SUBSIDIARIES CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2014 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net earnings (loss) 624 622 590 290 (1,506 ) 620 Other comprehensive income (loss), net of tax Unrealized gain (loss) on marketable securities 1 1 1 1 (3 ) 1 Foreign currency translation (148 ) (148 ) (31 ) (65 ) 244 (148 ) Gain (loss) from cash flow hedges 40 40 (1 ) (7 ) (32 ) 40 Pension and postretirement benefits (54 ) (54 ) (54 ) (5 ) 113 (54 ) Total other comprehensive income (loss), net of tax (161 ) (161 ) (85 ) (76 ) 322 (161 ) Total comprehensive income (loss), net of tax 463 461 505 214 (1,184 ) 459 Comprehensive (income) loss attributable to noncontrolling interests — — — 4 — 4 Comprehensive income (loss) attributable to Celanese Corporation 463 461 505 218 (1,184 ) 463 CELANESE CORPORATION AND SUBSIDIARIES CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2013 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net earnings (loss) 1,101 1,096 731 546 (2,373 ) 1,101 Other comprehensive income (loss), net of tax Unrealized gain (loss) on marketable securities 1 1 1 — (2 ) 1 Foreign currency translation 20 20 (10 ) (8 ) (2 ) 20 Gain (loss) from cash flow hedges 6 6 — — (6 ) 6 Pension and postretirement benefits 58 58 56 2 (116 ) 58 Total other comprehensive income (loss), net of tax 85 85 47 (6 ) (126 ) 85 Total comprehensive income (loss), net of tax 1,186 1,181 778 540 (2,499 ) 1,186 Comprehensive (income) loss attributable to noncontrolling interests — — — — — — Comprehensive income (loss) attributable to Celanese Corporation 1,186 1,181 778 540 (2,499 ) 1,186 |
Schedule of Consolidating Balance Sheets | CELANESE CORPORATION AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET As of December 31, 2015 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) ASSETS Current Assets Cash and cash equivalents — — 21 946 — 967 Trade receivables - third party and affiliates — — 132 722 (148 ) 706 Non-trade receivables, net 37 580 298 522 (1,152 ) 285 Inventories, net — — 258 474 (50 ) 682 Deferred income taxes — — 19 68 (19 ) 68 Marketable securities, at fair value — — 30 — — 30 Other assets — 12 28 40 (31 ) 49 Total current assets 37 592 786 2,772 (1,400 ) 2,787 Investments in affiliates 2,341 3,947 3,909 738 (10,097 ) 838 Property, plant and equipment, net — — 1,001 2,608 — 3,609 Deferred income taxes — 2 178 42 — 222 Other assets — 418 151 227 (496 ) 300 Goodwill — — 314 391 — 705 Intangible assets, net — — 51 74 — 125 Total assets 2,378 4,959 6,390 6,852 (11,993 ) 8,586 LIABILITIES AND EQUITY Current Liabilities Short-term borrowings and current installments of long-term debt - third party and affiliates — 479 181 213 (360 ) 513 Trade payables - third party and affiliates — — 240 495 (148 ) 587 Other liabilities — 28 281 283 (262 ) 330 Deferred income taxes — 26 — 23 (19 ) 30 Income taxes payable — — 537 116 (563 ) 90 Total current liabilities — 533 1,239 1,130 (1,352 ) 1,550 Noncurrent Liabilities Long-term debt, net of unamortized deferred financing costs — 2,078 706 187 (503 ) 2,468 Deferred income taxes — — — 136 — 136 Uncertain tax positions — 7 29 131 — 167 Benefit obligations — — 960 229 — 1,189 Other liabilities — — 93 155 (1 ) 247 Total noncurrent liabilities — 2,085 1,788 838 (504 ) 4,207 Total Celanese Corporation stockholders' equity 2,378 2,341 3,363 4,433 (10,137 ) 2,378 Noncontrolling interests — — — 451 — 451 Total equity 2,378 2,341 3,363 4,884 (10,137 ) 2,829 Total liabilities and equity 2,378 4,959 6,390 6,852 (11,993 ) 8,586 CELANESE CORPORATION AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET As of December 31, 2014 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) ASSETS Current Assets Cash and cash equivalents — — 110 670 — 780 Trade receivables - third party and affiliates — — 184 821 (204 ) 801 Non-trade receivables, net 35 477 2,265 407 (2,943 ) 241 Inventories, net — — 268 613 (99 ) 782 Deferred income taxes — — 39 12 (22 ) 29 Marketable securities, at fair value — — 32 — — 32 Other assets — 6 12 34 (19 ) 33 Total current assets 35 483 2,910 2,557 (3,287 ) 2,698 Investments in affiliates 2,784 5,889 4,349 613 (12,759 ) 876 Property, plant and equipment, net — — 1,029 2,704 — 3,733 Deferred income taxes — 16 211 26 — 253 Other assets — 653 145 400 (843 ) 355 Goodwill — — 314 435 — 749 Intangible assets, net — — 73 59 — 132 Total assets 2,819 7,041 9,031 6,794 (16,889 ) 8,796 LIABILITIES AND EQUITY Current Liabilities Short-term borrowings and current installments of long-term debt - third party and affiliates — 1,894 184 290 (2,231 ) 137 Trade payables - third party and affiliates — — 413 548 (204 ) 757 Other liabilities 1 34 225 402 (230 ) 432 Deferred income taxes — 22 — 7 (22 ) 7 Income taxes payable — — 484 45 (524 ) 5 Total current liabilities 1 1,950 1,306 1,292 (3,211 ) 1,338 Noncurrent Liabilities Long-term debt, net of unamortized deferred financing costs — 2,248 899 208 (769 ) 2,586 Deferred income taxes — — — 141 — 141 Uncertain tax positions — 6 16 137 — 159 Benefit obligations — — 923 288 — 1,211 Other liabilities — 53 121 192 (83 ) 283 Total noncurrent liabilities — 2,307 1,959 966 (852 ) 4,380 Total Celanese Corporation stockholders' equity 2,818 2,784 5,766 4,276 (12,826 ) 2,818 Noncontrolling interests — — — 260 — 260 Total equity 2,818 2,784 5,766 4,536 (12,826 ) 3,078 Total liabilities and equity 2,819 7,041 9,031 6,794 (16,889 ) 8,796 |
Schedule of Consolidating Cash Flow Statements | CELANESE CORPORATION AND SUBSIDIARIES CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2015 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net cash provided by (used in) operating activities 591 536 529 422 (1,216 ) 862 Investing Activities Capital expenditures on property, plant and equipment — — (128 ) (104 ) — (232 ) Acquisitions, net of cash acquired — — (3 ) (3 ) — (6 ) Proceeds from sale of businesses and assets, net — — — 4 — 4 Capital expenditures related to Kelsterbach plant relocation — — — — — — Capital expenditures related to Fairway Methanol LLC — — (20 ) (268 ) — (288 ) Return of capital from subsidiary — — — — — — Contributions to subsidiary — — (120 ) — 120 — Intercompany loan receipts (disbursements) — (333 ) (33 ) (15 ) 381 — Other, net — — (12 ) (24 ) — (36 ) Net cash provided by (used in) investing activities — (333 ) (316 ) (410 ) 501 (558 ) Financing Activities Short-term borrowings (repayments), net — 383 — — (33 ) 350 Proceeds from short-term borrowings — — — 80 — 80 Repayments of short-term borrowings — — — (83 ) — (83 ) Proceeds from long-term debt — 15 406 — (421 ) — Repayments of long-term debt — (9 ) (74 ) (14 ) 73 (24 ) Purchases of treasury stock, including related fees (420 ) — — — — (420 ) Dividends to parent — (592 ) (624 ) — 1,216 — Contributions from parent — — — 120 (120 ) — Stock option exercises 3 — — — — 3 Series A common stock dividends (174 ) — — — — (174 ) Return of capital to parent — — — — — — Contributions from noncontrolling interests — — — 214 — 214 Other, net — — (10 ) (2 ) — (12 ) Net cash provided by (used in) financing activities (591 ) (203 ) (302 ) 315 715 (66 ) Exchange rate effects on cash and cash equivalents — — — (51 ) — (51 ) Net increase (decrease) in cash and cash equivalents — — (89 ) 276 — 187 Cash and cash equivalents as of beginning of period — — 110 670 — 780 Cash and cash equivalents as of end of period — — 21 946 — 967 CELANESE CORPORATION AND SUBSIDIARIES CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2014 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net cash provided by (used in) operating activities 389 498 644 433 (1,002 ) 962 Investing Activities Capital expenditures on property, plant and equipment — — (183 ) (71 ) — (254 ) Acquisitions, net of cash acquired — — (10 ) — — (10 ) Proceeds from sale of businesses and assets, net — — — — — — Capital expenditures related to Kelsterbach plant relocation — — — — — — Capital expenditures related to Fairway Methanol LLC — — (44 ) (380 ) — (424 ) Return of capital from subsidiary — 28 51 — (79 ) — Contributions to subsidiary — — (213 ) — 213 — Intercompany loan receipts (disbursements) — (70 ) (93 ) (75 ) 238 — Other, net — — (9 ) (8 ) — (17 ) Net cash provided by (used in) investing activities — (42 ) (501 ) (534 ) 372 (705 ) Financing Activities Short-term borrowings (repayments), net — 93 6 (15 ) (93 ) (9 ) Proceeds from short-term borrowings — — — 62 — 62 Repayments of short-term borrowings — — — (91 ) — (91 ) Proceeds from long-term debt — 462 75 — (150 ) 387 Repayments of long-term debt — (611 ) (5 ) (15 ) 5 (626 ) Purchases of treasury stock, including related fees (250 ) — — — — (250 ) Dividends to parent — (390 ) (390 ) (222 ) 1,002 — Contributions from parent — — — 213 (213 ) — Stock option exercises 5 — — — — 5 Series A common stock dividends (144 ) — — — — (144 ) Return of capital to parent — — — (79 ) 79 — Contributions from noncontrolling interests — — — 264 — 264 Other, net — (10 ) (3 ) — — (13 ) Net cash provided by (used in) financing activities (389 ) (456 ) (317 ) 117 630 (415 ) Exchange rate effects on cash and cash equivalents — — — (46 ) — (46 ) Net increase (decrease) in cash and cash equivalents — — (174 ) (30 ) — (204 ) Cash and cash equivalents as of beginning of period — — 284 700 — 984 Cash and cash equivalents as of end of period — — 110 670 — 780 CELANESE CORPORATION AND SUBSIDIARIES CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2013 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net cash provided by (used in) operating activities 228 105 766 154 (491 ) 762 Investing Activities Capital expenditures on property, plant and equipment — — (156 ) (121 ) — (277 ) Acquisitions, net of cash acquired — — — — — — Proceeds from sale of businesses and assets, net — — — 13 — 13 Capital expenditures related to Kelsterbach plant relocation — — — (7 ) — (7 ) Capital expenditures related to Fairway Methanol LLC — — (93 ) — — (93 ) Return of capital from subsidiary — — — — — — Contributions to subsidiary — — (20 ) — 20 — Intercompany loan receipts (disbursements) — 5 (131 ) — 126 — Other, net — — (45 ) (13 ) — (58 ) Net cash provided by (used in) investing activities — 5 (445 ) (128 ) 146 (422 ) Financing Activities Short-term borrowings (repayments), net — 131 (8 ) (3 ) (131 ) (11 ) Proceeds from short-term borrowings — — — 177 — 177 Repayments of short-term borrowings — — — (123 ) — (123 ) Proceeds from long-term debt — 24 50 — — 74 Repayments of long-term debt — (34 ) (121 ) (48 ) 5 (198 ) Purchases of treasury stock, including related fees (164 ) — — — — (164 ) Dividends to parent — (229 ) (229 ) (33 ) 491 — Contributions from parent — — — 20 (20 ) — Stock option exercises 9 — — — — 9 Series A common stock dividends (83 ) — — — — (83 ) Return of capital to parent — — — — — — Contributions from noncontrolling interests — — — — — — Other, net — (2 ) (4 ) (1 ) — (7 ) Net cash provided by (used in) financing activities (238 ) (110 ) (312 ) (11 ) 345 (326 ) Exchange rate effects on cash and cash equivalents — — — 11 — 11 Net increase (decrease) in cash and cash equivalents (10 ) — 9 26 — 25 Cash and cash equivalents as of beginning of period 10 — 275 674 — 959 Cash and cash equivalents as of end of period — — 284 700 — 984 |
Description of the Company an62
Description of the Company and Basis of Presentation (Narrative) (Details) | Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidated subsidiaries ownership percentage | 100.00% |
Summary of Accounting Policie63
Summary of Accounting Policies (Investments in Affiliates Narrative) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Subsidiary reporting period lag | one quarter |
Summary of Accounting Policie64
Summary of Accounting Policies (Schedule of Estimated Useful Lives of Depreciable Assets) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Land Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 20Â years |
Buildings and Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 30Â years |
Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 20Â years |
Maximum [Member] | Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 10 years |
Summary of Accounting Policie65
Summary of Accounting Policies (Goodwill and Other Intangible Assets Narrative) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, estimated useful lives | 4 years |
Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, estimated useful lives | 20 years |
Summary of Accounting Policie66
Summary of Accounting Policies Summary of Accounting Policies (Derivative and Hedging Instruments) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Accounting Policies [Abstract] | |
Notional Value | $ 500 |
Summary of Accounting Policie67
Summary of Accounting Policies (Insurance Loss Reserves Narrative) (Details) | Dec. 31, 2015 |
Accounting Policies [Abstract] | |
Number of wholly-owned insurance companies | 2 |
Summary of Accounting Policie68
Summary of Accounting Policies (Environmental Liabilities Narrative) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Environmental liabilities accrual period | 15 years |
Summary of Accounting Policie69
Summary of Accounting Policies (Pension and Other Postretirement Obligations) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Treasury bond duration | 10-year |
Number of Aa-grade non-callable bonds | 300 |
Summary of Accounting Policie70
Summary of Accounting Policies Summary of Accounting Policies (Management Compensation Plans Narrative) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock, par value | $ 0.0001 | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Estimated life in years | 7 years | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Range of number of shares that will vest | zero to stretch | |
Minimum [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Maximum [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years | |
Director [Member] | RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Employee [Member] | RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Series A common stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Summary of Accounting Policie71
Summary of Accounting Policies (Income Taxes Narrative) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Valuation Allowance, Methodologies and Assumptions | A valuation allowance is provided when it is more likely than not (likelihood of greater than 50%) that some portion or all of the deferred tax assets will not be realized. Tax positions that meet the more-likely-than-not threshold are measured using a probability weighted approach as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement. |
Accounting Pronouncements (Narr
Accounting Pronouncements (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Deferred Finance Costs, Net | $ 22 | [1] | $ 27 | [1] | $ 27 | $ 30 |
Adjustments for New Accounting Principle, Early Adoption [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Deferred Finance Costs, Net | $ 18 | $ 22 | ||||
[1] | Includes $4 million and $5 million as of December 31, 2015 and 2014, respectively, related to the Company's revolving credit facility and accounts receivables securitization facility, which are included in Other noncurrent assets in the consolidated balance sheets. |
Acquisitions, Dispositions an73
Acquisitions, Dispositions and Plant Closures (Schedule of Restructuring and Related Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Restructuring Cost and Reserve [Line Items] | ||||||
Employee termination benefits | $ (53) | [1] | $ (7) | $ (23) | ||
Asset impairments | (126) | $ 0 | $ (81) | |||
Consumer Specialties [Member] | Lanaken, Belgium | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Employee termination benefits | [2] | (24) | ||||
Accelerated depreciation | (10) | |||||
Total | (34) | |||||
Industrial Specialties [Member] | Tarragona, Spain [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Employee termination benefits | [3] | (6) | ||||
Asset impairments | [3] | (1) | ||||
Accelerated depreciation | (9) | |||||
Total | (16) | |||||
Industrial Specialties [Member] | Meredosia, IL [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Employee termination benefits | [4] | (1) | ||||
Asset impairments | [4] | (1) | ||||
Accelerated depreciation | (19) | |||||
Other | (1) | |||||
Total | $ (22) | |||||
Acetyl Intermediates [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Asset impairments | $ (46) | |||||
Acetyl Intermediates [Member] | Tarragona, Spain [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Employee termination benefits | (14) | |||||
Asset impairments | $ (31) | |||||
[1] | Includes $1Â million of special termination benefits included in Benefit obligations in the consolidated balance sheet as of December 31, 2015 and is included in the Company's Industrial Specialties segment. | |||||
[2] | Included in Other (charges) gains, net in the consolidated statements of operations. | |||||
[3] | Included in Other (charges) gains, net in the consolidated statements of operations. | |||||
[4] | Included in Other (charges) gains, net in the consolidated statements of operations. |
Acquisitions, Dispositions an74
Acquisitions, Dispositions and Plant Closures (Plant Closure Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 01, 2015 | Apr. 22, 2015 | |
Consumer Specialties [Member] | Lanaken, Belgium | |||
Restructuring Cost and Reserve [Line Items] | |||
Capacity Reduction Percentage | 50.00% | 50.00% | 50.00% |
Research and Development Expense [Member] | Acetyl Intermediates [Member] | Clear Lake, TX [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Other Depreciation and Amortization | $ 39 |
Acquisitions, Dispositions an75
Acquisitions, Dispositions and Plant Closures (Plant Relocation Narrative) (Details) € in Millions | 3 Months Ended |
Dec. 31, 2013EUR (€) | |
Advanced Engineered Materials [Member] | Kelsterbach, Germany [Member] | |
Plant Relocation [Line Items] | |
Deferred proceeds recognized | € 651 |
Ventures and Variable Interes76
Ventures and Variable Interest Entities (Schedule of Variable Interest Entities) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | $ 967 | $ 780 | $ 984 | $ 959 | |
Trade receivables - third party and affiliates | 706 | 801 | |||
Property, plant and equipment (net of accumulated depreciation - 2015: $10) | 3,609 | 3,733 | |||
Accumulated depreciation | 2,039 | 1,816 | |||
Intangible assets, net | 125 | 132 | |||
Accumulated amortization | 528 | 556 | $ 587 | ||
Other assets | 300 | 355 | |||
Total assets | 8,586 | 8,796 | |||
Trade payables | 587 | 757 | |||
Current liabilities | 1,550 | 1,338 | |||
Deferred income taxes | 136 | 141 | |||
Variable Interest Entity, Primary Beneficiary [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 7 | 1 | |||
Trade receivables - third party and affiliates | 6 | 0 | |||
Property, plant and equipment (net of accumulated depreciation - 2015: $10) | 772 | 530 | |||
Intangible assets, net | 27 | 0 | |||
Other assets | 13 | 29 | |||
Variable Interest Entity, Not Primary Beneficiary [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Property, plant and equipment (net of accumulated depreciation - 2015: $10) | 73 | 96 | |||
Trade payables | 47 | 43 | |||
Current installments of long-term debt | 10 | 9 | |||
Long-term debt | 109 | 125 | |||
Total liabilities | 166 | 177 | |||
Maximum exposure to loss | 268 | 291 | |||
Fairway Methanol LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 7 | 1 | |||
Trade receivables - third party and affiliates | 12 | 0 | |||
Property, plant and equipment (net of accumulated depreciation - 2015: $10) | 772 | 530 | |||
Accumulated depreciation | 10 | 0 | |||
Intangible assets, net | 27 | 0 | |||
Accumulated amortization | 0 | 0 | |||
Other assets | 13 | 29 | |||
Total assets | [1] | 831 | 560 | ||
Trade payables | 9 | 0 | |||
Current liabilities | [2] | 5 | 40 | ||
Long-term debt | 5 | 0 | |||
Deferred income taxes | 2 | 0 | |||
Total liabilities | $ 21 | $ 40 | |||
[1] | Assets can only be used to settle the obligations of Fairway. | ||||
[2] | Amounts owed by Fairway to the Company for reimbursement of expenditures. |
Ventures and Variable Interes77
Ventures and Variable Interest Entities (Narrative) (Details) - Variable Interest Entity, Primary Beneficiary [Member] T in Millions | 12 Months Ended |
Dec. 31, 2015T | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 50.00% |
Expected production capacity per year | 1.3 |
Marketable Securities, at Fai78
Marketable Securities, at Fair Value (Schedule of Available-for-sale Securities) (Details) - Mutual Funds [Member] - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 30 | $ 32 |
Gross unrealized gain | 0 | 0 |
Gross unrealized loss | 0 | 0 |
Fair value | $ 30 | $ 32 |
Receivables, Net Receivables,79
Receivables, Net Receivables, Net (Schedule of Trade Receivables - Third Party and Affiliates, Net) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Trade receivables - third party and affiliates | $ 712 | $ 810 |
Allowance for doubtful accounts - third party and affiliates | (6) | (9) |
Trade receivables - third party and affiliates, net | $ 706 | $ 801 |
Receivables, Net Receivables,80
Receivables, Net Receivables, Net (Schedule of Non-trade Receivables, Net) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Non-income taxes receivable | $ 121 | $ 99 |
Reinsurance receivables | 18 | 20 |
Income taxes receivable | 79 | 50 |
Other | 67 | 72 |
Non-trade receivables, net | $ 285 | $ 241 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 498 | $ 579 |
Work-in-process | 43 | 53 |
Raw materials and supplies | 141 | 150 |
Total | $ 682 | $ 782 |
Investments in Affiliates (Sche
Investments in Affiliates (Schedule of Equity Method Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Carrying value | $ 687 | $ 731 | ||||||
Share of earnings (loss) | 181 | 246 | $ 180 | |||||
Dividends and other distributions | $ (176) | $ (148) | (141) | |||||
National Methonal Company (Ibn Sina) [Member] | Advanced Engineered Materials [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership percentage | 25.00% | 25.00% | ||||||
Carrying value | $ 87 | $ 97 | ||||||
Share of earnings (loss) | 88 | 115 | 111 | |||||
Dividends and other distributions | $ (98) | $ (85) | (97) | |||||
Fortron Industries LLC [Member] | Advanced Engineered Materials [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership percentage | 50.00% | 50.00% | ||||||
Carrying value | $ 100 | $ 97 | ||||||
Share of earnings (loss) | 11 | 9 | 8 | |||||
Dividends and other distributions | $ (8) | $ (7) | (5) | |||||
Korea Engineering Plastics Co., Ltd. [Member] | Advanced Engineered Materials [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership percentage | 50.00% | 50.00% | ||||||
Carrying value | $ 127 | $ 134 | ||||||
Share of earnings (loss) | 16 | 10 | 15 | |||||
Dividends and other distributions | $ (10) | $ (16) | (19) | |||||
Polyplastics Co., Ltd. [Member] | Advanced Engineered Materials [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership percentage | 45.00% | 45.00% | ||||||
Carrying value | $ 168 | $ 166 | ||||||
Share of earnings (loss) | 35 | 27 | 14 | |||||
Dividends and other distributions | $ (20) | $ (3) | 0 | |||||
InfraServ GmbH & Co. Gendorf KG [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership percentage | 39.00% | |||||||
InfraServ GmbH & Co. Gendorf KG [Member] | Other Activities [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership percentage | [1] | 39.00% | 39.00% | |||||
Carrying value | [1] | $ 37 | $ 39 | |||||
Share of earnings (loss) | [1] | 7 | 9 | 10 | ||||
Dividends and other distributions | [1] | $ (5) | $ (7) | (6) | ||||
InfraServ GmbH & Co. Hoechst KG [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership percentage | 32.00% | |||||||
InfraServ GmbH & Co. Hoechst KG [Member] | Other Activities [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership percentage | [1],[2] | 32.00% | 32.00% | |||||
Carrying value | [1],[2] | $ 147 | $ 174 | |||||
Share of earnings (loss) | $ 48 | $ 21 | [1],[2] | 72 | [1],[2] | 17 | [1],[2] | |
Share of earnings (loss), additional information | InfraServ GmbH & Co. Hoechst KG is owned primarily by an entity included in the Company's Other Activities. The Company's Consumer Specialties segment and Acetyl Intermediates segment also each hold an ownership percentage. During the three months ended June 30, 2014, InfraServ GmbH & Co. Hoechst KG restructured the debt of a subsidiary resulting in additional equity in net earnings of affiliates of $48 million. During the year ended December 31, 2012, a subsidiary of InfraServ GmbH & Co. Hoechst KG restructured its debt resulting in additional equity in net earnings of affiliates of $22 million attributable to the Company. | |||||||
Dividends and other distributions | [1],[2] | $ (32) | $ (26) | (9) | ||||
InfraServ GmbH & Co. Knapsack KG [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership percentage | 27.00% | |||||||
InfraServ GmbH & Co. Knapsack KG [Member] | Other Activities [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership percentage | [1] | 27.00% | 27.00% | |||||
Carrying value | [1] | $ 18 | $ 20 | |||||
Share of earnings (loss) | [1] | 4 | 4 | 4 | ||||
Dividends and other distributions | [1] | $ (3) | $ (4) | (5) | ||||
Sherbrooke Capital Health and Wellness, L.P. [Member] | Consumer Specialties [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership percentage | [3] | 10.00% | 10.00% | |||||
Carrying value | [3] | $ 3 | $ 4 | |||||
Share of earnings (loss) | [3] | (1) | 0 | 1 | ||||
Dividends and other distributions | [3] | $ 0 | $ 0 | $ 0 | ||||
[1] | InfraServ real estate service companies ("InfraServ Entities") own and operate sites in Frankfurt am Main-Hoechst, Gendorf and Knapsack, Germany. The InfraServ Entities were created to own land and property and to provide various technical and administrative services at these manufacturing locations. | |||||||
[2] | InfraServ GmbH & Co. Hoechst KG is owned primarily by an entity included in the Company's Other Activities. The Company's Consumer Specialties segment and Acetyl Intermediates segment also each hold an ownership percentage. During the three months ended June 30, 2014, InfraServ GmbH & Co. Hoechst KG restructured the debt of a subsidiary resulting in additional equity in net earnings of affiliates of $48 million. | |||||||
[3] | The Company accounts for its ownership interest in Sherbrooke Capital Health and Wellness, L.P. under the equity method of accounting because the Company is able to exercise significant influence. |
Investments in Affiliates (Sc83
Investments in Affiliates (Schedule of Cost Method Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Cost-method Investments [Line Items] | |||
Carrrying value | $ 151 | $ 145 | |
Dividend income | $ 107 | $ 116 | $ 93 |
Kunming Cellulose Fibers Co. Ltd. [Member] | Consumer Specialties [Member] | |||
Schedule of Cost-method Investments [Line Items] | |||
Ownership percentage | 30.00% | 30.00% | |
Carrrying value | $ 14 | $ 14 | |
Dividend income | $ 14 | $ 15 | 13 |
Nantong Cellulose Fibers Co. Ltd. [Member] | Consumer Specialties [Member] | |||
Schedule of Cost-method Investments [Line Items] | |||
Ownership percentage | 31.00% | 31.00% | |
Carrrying value | $ 106 | $ 106 | |
Dividend income | $ 79 | $ 87 | 68 |
Zhuhai Cellulose Fibers Co. Ltd. [Member] | Consumer Specialties [Member] | |||
Schedule of Cost-method Investments [Line Items] | |||
Ownership percentage | 30.00% | 30.00% | |
Carrrying value | $ 22 | $ 14 | |
Dividend income | $ 13 | $ 13 | 11 |
InfraServ GmbH & Co. Wiesbaden KG [Member] | Other Activities [Member] | |||
Schedule of Cost-method Investments [Line Items] | |||
Ownership percentage | 8.00% | 8.00% | |
Carrrying value | $ 5 | $ 6 | |
Dividend income | 1 | 1 | 1 |
Other Cost Method Investee [Member] | |||
Schedule of Cost-method Investments [Line Items] | |||
Carrrying value | 4 | 5 | |
Dividend income | $ 0 | $ 0 | $ 0 |
Investments in Affiliates (Sc84
Investments in Affiliates (Schedule of Transactions with Affiliates) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |||
Purchases | $ 195 | $ 231 | $ 264 |
Sales | $ 0 | $ 0 | $ 0 |
Investments in Affiliates (Sc85
Investments in Affiliates (Schedule of Balances with Affiliates) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |||
Non-trade receivables | $ 23 | $ 31 | |
Total due from affiliates | 23 | 31 | |
Short-term borrowings | [1] | 16 | 16 |
Trade payables | 34 | 39 | |
Current Other liabilities | 6 | 6 | |
Total due to affiliates | $ 56 | $ 61 | |
[1] | The Company has agreements with certain affiliates whereby excess affiliate cash is lent to and managed by the Company at variable interest rates governed by those agreements. |
Property, Plant and Equipment86
Property, Plant and Equipment, Net (Schedule of Property, Plant and Equipment, Net) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Gross asset value | $ 5,648 | $ 5,549 |
Accumulated depreciation | (2,039) | (1,816) |
Net book value | 3,609 | 3,733 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross asset value | 39 | 42 |
Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross asset value | 60 | 49 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross asset value | 679 | 658 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross asset value | 4,609 | 3,910 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross asset value | $ 261 | $ 890 |
Property, Plant and Equipment87
Property, Plant and Equipment, Net (Schedule of Assets Under Capital Leases) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Capital Leased Assets [Line Items] | ||
Accumulated depreciation | $ (138) | $ (125) |
Net book value | 164 | 201 |
Buildings [Member] | ||
Capital Leased Assets [Line Items] | ||
Gross capital leased asset value | 13 | 15 |
Machinery and Equipment [Member] | ||
Capital Leased Assets [Line Items] | ||
Gross capital leased asset value | $ 289 | $ 311 |
Property, Plant and Equipment88
Property, Plant and Equipment, Net (Schedule of Capitalized Interest and Depreciation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment, Net [Abstract] | |||
Capitalized interest | $ 15 | $ 16 | $ 9 |
Depreciation expense | $ 346 | $ 272 | $ 280 |
Goodwill and Intangible Asset89
Goodwill and Intangible Assets, Net (Schedule of Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Goodwill | ||||
Acquisitions (Note 4) | $ 0 | $ 9 | ||
Exchange rate changes | (44) | (58) | ||
Accumulated impairment losses | 0 | |||
Net book value | 705 | [1] | 749 | $ 798 |
Advanced Engineered Materials [Member] | ||||
Goodwill | ||||
Acquisitions (Note 4) | 0 | 9 | ||
Exchange rate changes | (13) | (17) | ||
Net book value | 282 | [1] | 295 | 303 |
Consumer Specialties [Member] | ||||
Goodwill | ||||
Acquisitions (Note 4) | 0 | 0 | ||
Exchange rate changes | (10) | (14) | ||
Net book value | 230 | [1] | 240 | 254 |
Industrial Specialties [Member] | ||||
Goodwill | ||||
Acquisitions (Note 4) | 0 | 0 | ||
Exchange rate changes | (2) | (2) | ||
Net book value | 39 | [1] | 41 | 43 |
Acetyl Intermediates [Member] | ||||
Goodwill | ||||
Acquisitions (Note 4) | 0 | 0 | ||
Exchange rate changes | (19) | (25) | ||
Net book value | $ 154 | [1] | $ 173 | $ 198 |
[1] | There were $0 million of accumulated impairment losses as of December 31, 2015. |
Goodwill and Intangible Asset90
Goodwill and Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Finite-Lived intangible Assets Rollforward | |||||
Acquisitions (Note 4) | $ 10 | [1] | $ 15 | [2] | |
Acquisitions (Note 5) | 10 | [1] | 15 | [2] | |
Exchange rate changes | (40) | (52) | |||
Gross asset value | 579 | 609 | $ 646 | ||
Amortization | (11) | (20) | (32) | ||
Exchange rate changes | 39 | 51 | |||
Accumulated amortization | (528) | (556) | (587) | ||
Net book value | 51 | ||||
Licenses [Member] | |||||
Finite-Lived intangible Assets Rollforward | |||||
Acquisitions (Note 4) | 7 | 0 | |||
Acquisitions (Note 5) | 7 | 0 | |||
Exchange rate changes | (1) | (1) | |||
Gross asset value | 38 | 32 | 33 | ||
Amortization | (3) | (3) | |||
Exchange rate changes | 1 | 0 | |||
Accumulated amortization | (25) | (23) | (20) | ||
Net book value | 13 | ||||
Customer-Related Intangible Assets [Member] | |||||
Finite-Lived intangible Assets Rollforward | |||||
Acquisitions (Note 4) | 0 | 2 | |||
Acquisitions (Note 5) | 0 | 2 | |||
Exchange rate changes | (39) | (51) | |||
Gross asset value | 456 | 495 | 544 | ||
Amortization | (4) | (12) | |||
Exchange rate changes | 38 | 50 | |||
Accumulated amortization | (449) | (483) | (521) | ||
Net book value | 7 | ||||
Developed Technology [Member] | |||||
Finite-Lived intangible Assets Rollforward | |||||
Acquisitions (Note 4) | 2 | 3 | |||
Acquisitions (Note 5) | 2 | 3 | |||
Exchange rate changes | 0 | 0 | |||
Gross asset value | 35 | 33 | 30 | ||
Amortization | (2) | (3) | |||
Exchange rate changes | 0 | 1 | |||
Accumulated amortization | (25) | (23) | (21) | ||
Net book value | 10 | ||||
Covenants Not to Compete and Other [Member] | |||||
Finite-Lived intangible Assets Rollforward | |||||
Acquisitions (Note 4) | 1 | 10 | |||
Acquisitions (Note 5) | 1 | 10 | |||
Exchange rate changes | 0 | 0 | |||
Gross asset value | 50 | 49 | 39 | ||
Amortization | (2) | (2) | |||
Exchange rate changes | 0 | 0 | |||
Accumulated amortization | (29) | $ (27) | $ (25) | ||
Net book value | $ 21 | ||||
Cool Polymers, Inc. [Member] | |||||
Finite-Lived intangible Assets Rollforward | |||||
Weighted average life of intangible assets acquired | 7 years | ||||
Fairway Methanol LLC [Member] | |||||
Finite-Lived intangible Assets Rollforward | |||||
Weighted average life of intangible assets acquired | 16 years | ||||
[1] | Primarily related to intangible assets acquired by Fairway (Note 5) during the year ended December 31, 2015, with a weighted average amortization period of 16 years. | ||||
[2] | Includes intangible assets acquired from Cool Polymers, Inc. with a weighted average amortization period of seven years (Note 4). Also includes intangible assets reimbursed by Mitsui (Note 5) during the year ended December 31, 2014. |
Goodwill and Intangible Asset91
Goodwill and Intangible Assets, Net (Schedule of Indefinite-Lived Intangible Assets, Net) (Details) - Trademarks and Trade Names [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Gross Asset Value | ||
Gross asset value | $ 79 | $ 83 |
Acquisitions (Note 4) | 0 | 2 |
Impairment loss (Note 2) | 0 | 0 |
Exchange rate changes | (5) | (6) |
Gross asset value | $ 74 | $ 79 |
Goodwill and Intangible Asset92
Goodwill and Intangible Assets, Net (Schedule of Estimated Amortization Expense) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,016 | $ 9 |
2,017 | 8 |
2,018 | 5 |
2,019 | 4 |
2,020 | $ 3 |
Current Other Liabilities (Deta
Current Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Other Liabilities, Current [Abstract] | ||
Asset retirement obligations | $ 10 | $ 9 |
Benefit obligations (Note 15) | 31 | 28 |
Customer rebates | 45 | 53 |
Derivatives (Note 22) | 2 | 13 |
Environmental (Note 16) | 11 | 21 |
Insurance | 10 | 9 |
Interest | 16 | 19 |
Restructuring (Note 18) | 30 | 21 |
Salaries and benefits | 109 | 129 |
Sales and use tax/foreign withholding tax payable | 13 | 13 |
Uncertain tax positions (Note 19) | 0 | 59 |
Other | 53 | 58 |
Total | $ 330 | $ 432 |
Noncurrent Other Liabilities (S
Noncurrent Other Liabilities (Schedule of Noncurrent Other Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Other Liabilities, Noncurrent [Abstract] | ||
Asset retirement obligations | $ 26 | $ 28 |
Deferred proceeds | 43 | 47 |
Deferred revenue | 13 | 21 |
Derivatives (Note 22) | 0 | 10 |
Environmental (Note 16) | 61 | 63 |
Income taxes payable | 7 | 13 |
Insurance | 50 | 51 |
Other | 47 | 50 |
Total | $ 247 | $ 283 |
Noncurrent Other Liabilities 95
Noncurrent Other Liabilities (Schedule of Changes in Asset Retirement Obligations) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Other Liabilities, Noncurrent [Abstract] | ||||
Balance at beginning of year | $ 37 | $ 47 | $ 64 | |
Additions | [1] | 0 | 4 | 5 |
Accretion | 1 | 1 | 2 | |
Payments | (4) | (8) | (23) | |
Revisions to cash flow estimates | [2] | 2 | (7) | (2) |
Exchange rate changes | 0 | 0 | 1 | |
Balance at end of year | $ 36 | $ 37 | $ 47 | |
[1] | Primarily relates to sites which management no longer considers to have an indeterminate life. | |||
[2] | Primarily relates to revisions to the estimated cost and timing of future obligations. |
Noncurrent Other Liabilities 96
Noncurrent Other Liabilities (Schedule of Changes in Asset Retirement Obligations Narrative) (Details) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Other Liabilities, Noncurrent [Abstract] | ||
Asset retirement obligation, liability for assets or businesses acquired | $ 10 | $ 10 |
Asset retirement obligation, recoveries current receivable non-trade | 1 | |
Asset retirement obligation, recoveries long-term receivable noncurrent other assets | $ 9 |
Debt (Schedule of Short-term De
Debt (Schedule of Short-term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | ||
Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates | ||||
Current installments of long-term debt | $ 56 | $ 25 | ||
Short-term borrowings, including amounts due to affiliates | [1] | 52 | 77 | |
Total | $ 513 | $ 137 | ||
Weighted average interest rate, short-term borrowings | 3.30% | 4.70% | ||
Revolving Credit Facility [Member] | ||||
Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates | ||||
Accounts receivable securitization facility | [3] | $ 350 | [2] | $ 0 |
Weighted average interest rate, credit facility | 1.80% | 0.00% | ||
Accounts Receivable Securitization Facility [Member] | ||||
Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates | ||||
Accounts receivable securitization facility | [5] | $ 55 | [4] | $ 35 |
Weighted average interest rate, credit facility | 0.80% | 0.70% | ||
[1] | The weighted average interest rate was 3.3% and 4.7% as of December 31, 2015 and 2014, respectively. | |||
[2] | The Company borrowed $550 million and repaid $200 million during the year ended December 31, 2015. Borrowings were primarily used to fund repurchases of the Company's Common Stock. | |||
[3] | The weighted average interest rate was 1.8% and 0.0% as of December 31, 2015 and 2014, respectively. | |||
[4] | The Company borrowed $35 million and repaid $15 million during the year ended December 31, 2015. | |||
[5] | The weighted average interest rate was 0.8% and 0.7% as of December 31, 2015 and 2014, respectively. |
Debt (Schedule of Long-term Deb
Debt (Schedule of Long-term Debt) (Details) € in Millions, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014EUR (€) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | ||||
Long-Term Debt | ||||||||
Subtotal | $ 2,542 | $ 2,633 | ||||||
Unamortized debt issuance costs | (22) | [1] | (27) | [1] | $ (27) | $ (30) | ||
Current installments of long-term debt | (56) | (25) | ||||||
Total | 2,468 | 2,586 | ||||||
Term C-2 Loan Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Secured Debt | $ 30 | 34 | € 28 | |||||
Long-Term Debt | ||||||||
Credit facility, expiration date | Oct. 15, 2016 | |||||||
Term C-3 Loan Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Secured Debt | $ 878 | 906 | ||||||
Senior Unsecured Notes Due 2018 [Member] | ||||||||
Long-Term Debt | ||||||||
Maturity Date | Oct. 31, 2018 | |||||||
Interest Rate | 6.625% | |||||||
Senior Unsecured Notes Due 2019 [Member] | ||||||||
Long-Term Debt | ||||||||
Senior unsecured notes | $ 327 | 364 | ||||||
Maturity Date | Oct. 15, 2019 | |||||||
Interest Rate | 3.25% | |||||||
Senior Unsecured Notes Due 2021 [Member] | ||||||||
Long-Term Debt | ||||||||
Senior unsecured notes | $ 400 | 400 | ||||||
Maturity Date | Jun. 15, 2021 | |||||||
Interest Rate | 5.875% | |||||||
Senior Unsecured Notes Due 2022 [Member] | ||||||||
Long-Term Debt | ||||||||
Senior unsecured notes | $ 500 | $ 500 | ||||||
Maturity Date | Nov. 15, 2022 | Nov. 15, 2022 | ||||||
Interest Rate | 4.625% | |||||||
Pollution Control and Industrial Revenue Bonds [Member] | ||||||||
Long-Term Debt | ||||||||
Pollution control and industrial revenue bonds due at various dates through 2030, interest rates ranging from 5.7% to 6.7% | $ 169 | $ 169 | ||||||
Interest rate, stated percentage range, minimum | 5.70% | |||||||
Interest rate, stated percentage range, maximum | 6.70% | |||||||
Year of maturity, range end | Nov. 1, 2030 | |||||||
Obligations Under Capital Leases [Member] | ||||||||
Long-Term Debt | ||||||||
Year of maturity, range end | Mar. 31, 2054 | |||||||
Obligations under capital leases due at various dates through 2054 | $ 238 | 260 | ||||||
Long-term Debt [Member] | ||||||||
Long-Term Debt | ||||||||
Unamortized debt issuance costs | [2] | $ (18) | $ (22) | |||||
[1] | Includes $4 million and $5 million as of December 31, 2015 and 2014, respectively, related to the Company's revolving credit facility and accounts receivables securitization facility, which are included in Other noncurrent assets in the consolidated balance sheets. | |||||||
[2] | Related to the Company's outstanding senior credit facilities - Term C-2 and Term C-3 loans, senior unsecured notes issued in public offerings registered under the Securities Act of 1933 (collectively, the "Senior Notes") and pollution control bonds. |
Debt Debt (Schedule of Senior N
Debt Debt (Schedule of Senior Notes) (Details) € in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015EUR (€) | Dec. 31, 2014 | Dec. 31, 2015USD ($) | |
Senior Unsecured Notes Due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Principal | $ 400 | ||
Interest Rate | 5.875% | 5.875% | |
Maturity Date | Jun. 15, 2021 | ||
Senior Unsecured Notes Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Principal | $ 500 | ||
Interest Rate | 4.625% | 4.625% | |
Maturity Date | Nov. 15, 2022 | Nov. 15, 2022 | |
Senior Unsecured Notes Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Principal | € | € 300 | ||
Interest Rate | 3.25% | 3.25% | |
Maturity Date | Oct. 15, 2019 |
Debt (Schedule of Net Deferred
Debt (Schedule of Net Deferred Financing Costs) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Debt Instrument [Line Items] | ||||||||
Deferred Finance Costs, Net | $ 22 | [1] | $ 27 | [1] | $ 27 | $ 30 | ||
Financing costs deferred | 0 | 10 | [2] | 2 | [3] | |||
Accelerated amortization due to refinancing activity | 0 | (5) | [4] | 0 | ||||
Amortization | $ (5) | (5) | $ (5) | |||||
Senior Unsecured Notes Due 2018 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 6.625% | |||||||
Accelerated amortization due to refinancing activity | (4) | |||||||
Senior Unsecured Notes Due 2022 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 4.625% | |||||||
Term C-3 Loan Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Financing costs deferred | 4 | |||||||
Term C-2 Loan Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility, expiration date | Oct. 15, 2016 | |||||||
Accelerated amortization due to refinancing activity | (1) | |||||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility, expiration date | Oct. 15, 2018 | |||||||
Repayments of Lines of Credit | $ 200 | |||||||
Senior Unsecured Notes Due 2019 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 3.25% | |||||||
Financing costs deferred | 6 | |||||||
Other Noncurrent Assets [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Deferred Finance Costs, Net | $ 4 | $ 5 | ||||||
[1] | Includes $4 million and $5 million as of December 31, 2015 and 2014, respectively, related to the Company's revolving credit facility and accounts receivables securitization facility, which are included in Other noncurrent assets in the consolidated balance sheets. | |||||||
[2] | Includes $6 million related to the issuance of the 3.250% Notes and $4 million related to the September 2014 amendment to the Celanese US existing senior secured credit facilities. | |||||||
[3] | Relates to the September 2013 amendment to the Celanese US existing senior secured credit facilities to reduce the interest rates payable in connection with certain borrowings thereby creating the Term C-2 loan facility due 2016. | |||||||
[4] | Includes $4 million related to the 6.625% Notes redemption and $1 million related to the Term C-2 loan facility conversion. |
Debt (Schedule of First Lien Se
Debt (Schedule of First Lien Senior Secured Leverage Ratios) (Details) - Revolving Credit Facility [Member] | Dec. 31, 2015 |
Debt Instrument [Line Items] | |
Maximum Secured leverage ratio | 3.90 |
Secured leverage ratio estimate | 0.92 |
First lien secured leverage ratio | 1.30 |
Debt (Schedule of Balances Avai
Debt (Schedule of Balances Available for Borrowing) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2015 | Nov. 04, 2015 | Nov. 03, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | |||
Debt Instrument [Line Items] | |||||||
AR transferred by Originators to the Transferor | $ 131 | ||||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings outstanding | [2] | 350 | [1] | $ 0 | |||
Letters of credit issued | 0 | ||||||
Available for borrowing | 550 | ||||||
Maximum borrowing base | $ 900 | ||||||
Proceeds from Lines of Credit | 550 | ||||||
Repayments of Lines of Credit | 200 | ||||||
Accounts Receivable Securitization Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings outstanding | [4] | 55 | [3] | $ 35 | |||
Letters of credit issued | 59 | ||||||
Available for borrowing | 0 | ||||||
Total borrowing base | 114 | ||||||
Maximum borrowing base | [5] | 120 | $ 120 | $ 135 | |||
Proceeds from Lines of Credit | 35 | ||||||
Repayments of Lines of Credit | $ 15 | ||||||
[1] | The Company borrowed $550 million and repaid $200 million during the year ended December 31, 2015. Borrowings were primarily used to fund repurchases of the Company's Common Stock. | ||||||
[2] | The weighted average interest rate was 1.8% and 0.0% as of December 31, 2015 and 2014, respectively. | ||||||
[3] | The Company borrowed $35 million and repaid $15 million during the year ended December 31, 2015. | ||||||
[4] | The weighted average interest rate was 0.8% and 0.7% as of December 31, 2015 and 2014, respectively. | ||||||
[5] | Outstanding accounts receivable transferred by the Originators to the Transferor was $131 million. On November 5, 2015, the Company reduced the maximum borrowing base from $135 million to $120 million. |
Debt (Schedule of Principle Pay
Debt (Schedule of Principle Payments) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Debt Disclosure [Abstract] | |
2,016 | $ 513 |
2,017 | 28 |
2,018 | 882 |
2,019 | 351 |
2,020 | 28 |
Thereafter | 1,197 |
Total | $ 2,999 |
Debt (Senior Notes and Senior C
Debt (Senior Notes and Senior Credit Facilities Narrative) (Details) € in Millions, $ in Millions | Dec. 31, 2015USD ($) | Oct. 15, 2014USD ($) | Sep. 30, 2014EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Sep. 30, 2014USD ($) | |
Debt Instrument [Line Items] | ||||||||
Accelerated amortization due to refinancing | $ 0 | $ 5 | [1] | $ 0 | ||||
Senior Unsecured Notes Due 2018 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes | $ 600 | |||||||
Interest rate, stated percentage | 6.625% | 6.625% | ||||||
Redemption premium | $ 20 | |||||||
Accelerated amortization due to refinancing | 4 | |||||||
Debt Instrument, Redemption Price, Percentage of Principle Amount Redeemed | 103.313% | |||||||
Debt Instrument, Repurchase Amount | $ 620 | |||||||
Interest paid for called senior notes | $ 20 | |||||||
Date of maturity | Oct. 31, 2018 | |||||||
Term C-3 Loan Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Secured Debt | $ 878 | $ 878 | 906 | |||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | |||||||
Date of maturity | Oct. 15, 2018 | |||||||
Maximum borrowing capacity | $ 900 | |||||||
Credit facility, expiration date | Oct. 15, 2018 | |||||||
Term C-2 Loan Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Accelerated amortization due to refinancing | 1 | |||||||
Secured Debt | 30 | € 28 | $ 30 | $ 34 | ||||
Credit facility, expiration date | Oct. 15, 2016 | |||||||
Amended Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Amortization rate of initial principal amount per annum payable quarterly | 1.00% | |||||||
Cross default covenant to other debt | $ 50 | $ 50 | ||||||
London Interbank Offered Rate (LIBOR) [Member] | Term C-3 Loan Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||||||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||
European Interbank Offered Rate [Member] | Term C-3 Loan Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||||||
European Interbank Offered Rate [Member] | Term C-2 Loan Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||||||
[1] | Includes $4 million related to the 6.625% Notes redemption and $1 million related to the Term C-2 loan facility conversion. |
Debt Debt (Accounts Receivable
Debt Debt (Accounts Receivable Securitization Facility Narrative) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Receivable Securitization Facility [Member] | |
Debt Instrument [Line Items] | |
Credit facility, expiration date | Aug. 28, 2016 |
Benefit Obligations (Schedule o
Benefit Obligations (Schedule of Contributions to Multiemployer Defined Benefit Pension Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Multiemployer defined benefit plan | $ 6 | $ 8 | $ 8 |
Benefit Obligations (Schedul107
Benefit Obligations (Schedule of Other Postemployment Obligations) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | ||
Postemployment benefits | $ 11 | $ 12 |
Benefit Obligations Benefit Obl
Benefit Obligations Benefit Obligations (Schedule of Contributions to Defined Contribution Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Defined contribution plans | $ 44 | $ 40 | $ 19 |
Benefit Obligations (Schedul109
Benefit Obligations (Schedule of Company's Pension and Post Retirement Benefit Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Amounts Recognized in Accumulated Other Comprehensive Income Consist of: | ||||
Net amount recognized | $ (3) | $ 54 | $ (58) | |
Other comprehensive (income) loss, tax effect | 3 | 4 | ||
Pension Benefits [Member] | ||||
Change in Projected Benefit Obligation | ||||
Projected benefit obligation as of beginning of period | 3,915 | 3,799 | ||
Service cost | 12 | 11 | 34 | |
Interest cost | 139 | 168 | 154 | |
Participant contributions | 0 | 0 | ||
Plan amendments | 0 | (1) | ||
Net actuarial (gain) loss | [1] | (141) | 458 | |
Settlements | 0 | (221) | ||
Benefits paid | [2] | (234) | (232) | |
Federal subsidy on Medicare Part D | 0 | 0 | ||
Curtailments | (1) | 0 | ||
Special termination benefits | 2 | 0 | ||
Exchange rate changes | (65) | (68) | ||
Other | 8 | 1 | ||
Projected benefit obligation as of end of period | 3,635 | 3,915 | 3,799 | |
Change in Plan Assets | ||||
Fair value of plan assets as of beginning of period | 2,789 | 2,709 | ||
Actual return on plan assets | (67) | 327 | ||
Employer contributions | 59 | 165 | ||
Participant contributions | 0 | 0 | ||
Settlements | 0 | (143) | ||
Benefits paid | [2] | (234) | (232) | |
Exchange rate changes | (39) | (37) | ||
Fair value of plan assets as of end of period | 2,508 | 2,789 | 2,709 | |
Funded status as of end of period | (1,127) | (1,126) | ||
Amounts Recognized in the Consolidated Balance Sheets Consist of: | ||||
Noncurrent Other assets | 16 | 16 | ||
Current Other liabilities | (25) | (23) | ||
Benefit obligations | (1,118) | (1,119) | ||
Net amount recognized | (1,127) | (1,126) | ||
Amounts Recognized in Accumulated Other Comprehensive Income Consist of: | ||||
Net actuarial (gain) loss | [3] | 16 | 16 | |
Prior service (benefit) cost | (1) | (4) | ||
Net amount recognized | [4] | 15 | 12 | |
Postretirement Benefits [Member] | ||||
Change in Projected Benefit Obligation | ||||
Projected benefit obligation as of beginning of period | 85 | 136 | ||
Service cost | 1 | 1 | 2 | |
Interest cost | 3 | 4 | 9 | |
Participant contributions | 1 | 5 | ||
Plan amendments | (6) | (5) | ||
Net actuarial (gain) loss | [1] | (8) | 11 | |
Settlements | 0 | 0 | ||
Benefits paid | [2] | (5) | (61) | |
Federal subsidy on Medicare Part D | 0 | (2) | ||
Curtailments | 0 | 0 | ||
Special termination benefits | 0 | 0 | ||
Exchange rate changes | (5) | (4) | ||
Other | 0 | 0 | ||
Projected benefit obligation as of end of period | 66 | 85 | 136 | |
Change in Plan Assets | ||||
Fair value of plan assets as of beginning of period | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Employer contributions | 4 | 56 | ||
Participant contributions | 1 | 5 | ||
Settlements | 0 | 0 | ||
Benefits paid | [2] | (5) | (61) | |
Exchange rate changes | 0 | 0 | ||
Fair value of plan assets as of end of period | 0 | 0 | $ 0 | |
Funded status as of end of period | (66) | (85) | ||
Amounts Recognized in the Consolidated Balance Sheets Consist of: | ||||
Noncurrent Other assets | 0 | 0 | ||
Current Other liabilities | (4) | (5) | ||
Benefit obligations | (62) | (80) | ||
Net amount recognized | (66) | (85) | ||
Amounts Recognized in Accumulated Other Comprehensive Income Consist of: | ||||
Net actuarial (gain) loss | [3] | 0 | 0 | |
Prior service (benefit) cost | (4) | 3 | ||
Net amount recognized | [4] | (4) | 3 | |
Nonqualified Pension Benefits [Member] | ||||
Change in Projected Benefit Obligation | ||||
Benefits paid | (22) | (22) | ||
Change in Plan Assets | ||||
Benefits paid | $ (22) | $ (22) | ||
[1] | Primarily relates to change in discount rates. | |||
[2] | Includes benefit payments to nonqualified pension plans of $22 million and $22 million as of December 31, 2015 and 2014, respectively. | |||
[3] | Relates to the pension plans of the Company's equity method investments. | |||
[4] | Amount shown net of an income tax benefit of $3 million and $4 million as of December 31, 2015 and 2014, respectively, in the consolidated statements of equity (Note 17). |
Benefit Obligations (Schedul110
Benefit Obligations (Schedule of Percentage of US and International Projected Benefit Obligation) (Details) | Dec. 31, 2015 | Dec. 31, 2014 |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of projected benefit obligation | 100.00% | 100.00% |
United States Pension Plan of US Entity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of projected benefit obligation | 86.00% | 85.00% |
Foreign Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of projected benefit obligation | 14.00% | 15.00% |
Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of projected benefit obligation | 100.00% | 100.00% |
United States Postretirement Benefit Plan of US Entity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of projected benefit obligation | 61.00% | 59.00% |
Foreign Postretirement Benefit Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of projected benefit obligation | 39.00% | 41.00% |
Benefit Obligations (Schedul111
Benefit Obligations (Schedule of Percentage of US and International Fair Value of Plan Assets) (Details) | Dec. 31, 2015 | Dec. 31, 2014 |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Percentage | 100.00% | 100.00% |
United States Pension Plan of US Entity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Percentage | 87.00% | 88.00% |
Foreign Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Percentage | 13.00% | 12.00% |
Benefit Obligations (Schedul112
Benefit Obligations (Schedule of Pension Plans with Projected Benefit Obligations in Excess of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | ||
Projected benefit obligation | $ 3,588 | $ 3,866 |
Fair value of plan assets | $ 2,445 | $ 2,724 |
Benefit Obligations (Schedul113
Benefit Obligations (Schedule of Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | ||
Accumulated benefit obligation | $ 3,570 | $ 3,833 |
Fair value of plan assets | $ 2,442 | $ 2,713 |
Benefit Obligations (Schedul114
Benefit Obligations (Schedule of Accumulated Benefit Obligation for All Defined Benefit Pension Plans) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | ||
Accumulated benefit obligation | $ 3,619 | $ 3,892 |
Benefit Obligations (Schedul115
Benefit Obligations (Schedule of Net Periodic Benefit Costs Recognized) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Recognized actuarial (gain) loss | $ 127 | $ 350 | $ (104) | ||||
Pension Benefits [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Service cost | 12 | 11 | 34 | ||||
Interest cost | 139 | 168 | 154 | ||||
Expected return on plan assets | (209) | (214) | (223) | ||||
Amortization of prior service cost / (credit) | 0 | 0 | 1 | ||||
Recognized actuarial (gain) loss | 134 | [1] | 339 | [2] | (67) | ||
Curtailment (gain) loss | (3) | 0 | (61) | ||||
Settlement (gain) loss | 0 | (78) | 9 | ||||
Special termination benefit | 2 | 0 | 0 | ||||
Total | 75 | 226 | (153) | ||||
Recognized actuarial (gain) loss relating to mortality table change | [1] | (62) | 53 | ||||
Postretirement Benefits [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Service cost | 1 | 1 | 2 | ||||
Interest cost | 3 | 4 | 9 | ||||
Expected return on plan assets | 0 | 0 | 0 | ||||
Amortization of prior service cost / (credit) | 0 | (83) | (12) | ||||
Recognized actuarial (gain) loss | (7) | 11 | (37) | ||||
Curtailment (gain) loss | 0 | 0 | 0 | ||||
Settlement (gain) loss | 0 | 0 | 0 | ||||
Special termination benefit | 0 | 0 | 0 | ||||
Total | $ (3) | (67) | $ (38) | ||||
UNITED STATES | Pension Benefits [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Curtailment (gain) loss | $ (61) | ||||||
Settlement (gain) loss | (78) | ||||||
UNITED STATES | Postretirement Benefits [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Amortization of prior service cost / (credit) | $ (13) | $ (84) | |||||
[1] | Includes a gain of $62Â million reflecting the incorporation of the RP-2015 | ||||||
[2] | Includes a loss of $53 million reflecting the incorporation of the RP-2014 |
Benefit Obligations (Schedul116
Benefit Obligations (Schedule of Amortization of Accumulated Other Comprehensive Income (Loss), Net Into Net Periodic Benefit Cost) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service cost | $ 0 |
Postretirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service cost | $ (3) |
Benefit Obligations (Schedul117
Benefit Obligations (Schedule of Nonqualified Pension Plans Funded with Nonqualified Trusts) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent Other assets, consisting of insurance contracts | $ 55 | $ 56 |
Nonqualified Pension Obligations [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent Other assets, consisting of insurance contracts | 55 | 56 |
Current Other liabilities | 22 | 22 |
Benefit obligations | 246 | 268 |
Nonqualified Pension Obligations [Member] | Nonqualified Trust Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Marketable securities, at fair value | $ 30 | $ 32 |
Benefit Obligations (Schedul118
Benefit Obligations (Schedule of Expense Related to Nonqualified Pension Plans Included in Net Periodic Benefit Cost, Excluding Returns on Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Nonqualified Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total | $ 0 | [1] | $ 43 | $ 6 |
[1] | Actuarial gain offset interest cost. |
Benefit Obligations (Pension an
Benefit Obligations (Pension and Other Postretirement Obligations Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 27, 2014 | Nov. 05, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||||||
Multiemployer plans, funded status | At least 80 percent | At least 80 percent | At least 80 percent | ||||
Multiemployer plans, period contributions, significance of contributions | false | false | |||||
Pension Benefits [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Settlement gain (loss) | $ 0 | $ 78 | $ (9) | ||||
Curtailment gain (loss) | 3 | 0 | 61 | ||||
Amortization of prior service cost (credit) | 0 | 0 | 1 | ||||
Lump-sum buyout payments | 0 | 143 | |||||
Pension Benefits [Member] | UNITED KINGDOM | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Settlement gain (loss) | $ (9) | ||||||
Pension Benefits [Member] | UNITED STATES | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Settlement gain (loss) | 78 | ||||||
Curtailment gain (loss) | 61 | ||||||
Lump-sum buyout payments | $ 143 | ||||||
Postretirement Benefits [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Settlement gain (loss) | 0 | 0 | 0 | ||||
Curtailment gain (loss) | 0 | 0 | 0 | ||||
Amortization of prior service cost (credit) | 0 | (83) | $ (12) | ||||
Lump-sum buyout payments | $ 0 | 0 | |||||
Postretirement Benefits [Member] | UNITED STATES | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Prior service cost (credit) | $ (92) | ||||||
Amortization of prior service cost (credit) | (13) | (84) | |||||
Lump-sum buyout payments | $ 23 | $ 40 | |||||
Narrows Union Employees [Member] | Postretirement Benefits [Member] | UNITED STATES | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Prior service cost (credit) | $ (5) |
Benefit Obligations (Schedul120
Benefit Obligations (Schedule of Principle Weighted Average Assumptions Used to Determine Benefit Obligations and Benefit Cost) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate obligations | 4.00% | 3.70% | |
Rate of compensation increase | 2.70% | 2.80% | |
Discount rate obligations | 3.70% | 4.60% | 3.80% |
Expected return on plan assets | 7.80% | 8.20% | 8.00% |
Rate of compensation increase | 2.80% | 3.00% | 3.80% |
United States Pension Plan of US Entity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate obligations | 4.20% | 3.90% | |
Discount rate obligations | 3.90% | 4.70% | 3.80% |
Expected return on plan assets | 8.00% | 8.50% | 8.50% |
Rate of compensation increase | 3.00% | 4.00% | |
Foreign Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate obligations | 2.60% | 2.40% | |
Rate of compensation increase | 2.70% | 2.80% | |
Discount rate obligations | 2.40% | 3.70% | 3.60% |
Expected return on plan assets | 6.00% | 6.20% | 5.80% |
Rate of compensation increase | 2.80% | 2.80% | 2.90% |
Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate obligations | 3.70% | 3.60% | |
Discount rate obligations | 3.60% | 4.40% | 3.50% |
United States Postretirement Benefit Plan of US Entity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate obligations | 4.00% | 3.70% | |
Discount rate obligations | 3.70% | 4.30% | 3.40% |
Foreign Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate obligations | 3.60% | 3.50% | |
Discount rate obligations | 3.50% | 4.50% | 3.80% |
Benefit Obligations Benefit 121
Benefit Obligations Benefit Obligations (Schedule of US Health Care Cost Trend Rates) (Details) - United States Postretirement Benefit Plan of US Entity [Member] | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
ScheduleofHealthCareCostTrend [Line Items] | |||
Health care cost trend rate assumed for next year | 10.00% | 7.00% | 7.50% |
Health care cost trend ultimate rate | 5.00% | 5.00% | 5.00% |
Health care cost trend ultimate rate year | 2,026 | 2,020 | 2,017 |
Benefit Obligations (Schedul122
Benefit Obligations (Schedule of Impact of One-Percentage-Point Change in Assumed Health Care Cost Trend) (Details) - United States Postretirement Benefit Plan of US Entity [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Postretirement obligations, impact of 1% decrease | $ 2 |
Postretirement obligations, impact of 1% increase | 2 |
Service and interest cost, impact of 1% decrease | 0 |
Service and interest cost, impact of 1% increase | $ 0 |
Benefit Obligations (Valuation
Benefit Obligations (Valuation Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on plan assets | 7.80% | 8.20% | 8.00% |
United States Pension Plan of US Entity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual return on plan assets | (2.50%) | ||
Expected return on plan assets | 8.00% | 8.50% | 8.50% |
United States Postretirement Benefit Plan of US Entity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate assumed for next year | 10.00% | 7.00% | 7.50% |
Health care cost trend ultimate rate | 5.00% | 5.00% | 5.00% |
Benefit Obligations (Schedul124
Benefit Obligations (Schedule of Weighted Average Target Asset Allocations) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
United States Pension Plan of US Entity [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Weighted average target asset allocations | 100.00% |
United States Pension Plan of US Entity [Member] | Bonds - Domestic to Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Weighted average target asset allocations | 54.00% |
United States Pension Plan of US Entity [Member] | Equities - Domestic to Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Weighted average target asset allocations | 26.00% |
United States Pension Plan of US Entity [Member] | Equities - International to Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Weighted average target asset allocations | 20.00% |
United States Pension Plan of US Entity [Member] | Other [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Weighted average target asset allocations | 0.00% |
Foreign Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Weighted average target asset allocations | 100.00% |
Foreign Pension Plan [Member] | Bonds - Domestic to Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Weighted average target asset allocations | 71.00% |
Foreign Pension Plan [Member] | Equities - Domestic to Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Weighted average target asset allocations | 19.00% |
Foreign Pension Plan [Member] | Equities - International to Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Weighted average target asset allocations | 3.00% |
Foreign Pension Plan [Member] | Other [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Weighted average target asset allocations | 7.00% |
Benefit Obligations (Schedul125
Benefit Obligations (Schedule of Fair Values of Pension Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets, fair value non-financial receivables | $ 25 | $ 19 | |
Pension plan assets, fair value non-financial payables | 14 | 26 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | [1] | 2,086 | 2,122 |
Total liabilities [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 25 | 278 | |
Swaps [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 25 | 270 | |
Other [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 2 | |
Obligations Under Securities Lending [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 6 | |
Total plan assets [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | [2] | 2,111 | 2,400 |
Cash and Cash quivalents [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 4 | 6 | |
Equities [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 251 | 278 | |
Swaps [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 25 | 275 | |
Other [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 2 | |
US Companies [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 241 | 249 | |
International Companies [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 327 | 383 | |
Corporate Debt [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 692 | 639 | |
Treasuries, Other Debt [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 767 | 757 | |
Mortgage Backed Securities [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 5 | 31 | |
Registered Investment Companies [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 117 | 133 | |
Obligations Under Securities Lending [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 6 | |
Short-term Investments [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 43 | 263 | |
Insurance Contracts [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 32 | 34 | |
Other [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 18 | 18 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | [1] | 615 | 703 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Total liabilities [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 6 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Swaps [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Obligations Under Securities Lending [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 6 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Total plan assets [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | [2] | 615 | 709 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash and Cash quivalents [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 4 | 6 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Swaps [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | US Companies [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 241 | 249 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | International Companies [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 327 | 383 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate Debt [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Treasuries, Other Debt [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 25 | 49 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mortgage Backed Securities [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Obligations Under Securities Lending [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 6 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Insurance Contracts [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 18 | 16 | |
Significant Other Observable Inputs (Level 2) [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | [1] | 1,471 | 1,419 |
Significant Other Observable Inputs (Level 2) [Member] | Total liabilities [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 25 | 272 | |
Significant Other Observable Inputs (Level 2) [Member] | Swaps [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 25 | 270 | |
Significant Other Observable Inputs (Level 2) [Member] | Other [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 2 | |
Significant Other Observable Inputs (Level 2) [Member] | Obligations Under Securities Lending [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Total plan assets [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | [2] | 1,496 | 1,691 |
Significant Other Observable Inputs (Level 2) [Member] | Cash and Cash quivalents [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Swaps [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 25 | 275 | |
Significant Other Observable Inputs (Level 2) [Member] | Other [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 2 | |
Significant Other Observable Inputs (Level 2) [Member] | US Companies [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | International Companies [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Debt [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 692 | 639 | |
Significant Other Observable Inputs (Level 2) [Member] | Treasuries, Other Debt [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 742 | 708 | |
Significant Other Observable Inputs (Level 2) [Member] | Mortgage Backed Securities [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 5 | 31 | |
Significant Other Observable Inputs (Level 2) [Member] | Obligations Under Securities Lending [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Insurance Contracts [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 32 | 34 | |
Significant Other Observable Inputs (Level 2) [Member] | Other [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | $ 0 | $ 2 | |
[1] | Total net assets excludes non-financial plan receivables and payables of $25 million and $14 million, respectively, as of December 31, 2015 and $19 million and $26 million, respectively, as of December 31, 2014. Non-financial items include due to/from broker, interest receivables and accrued expenses. | ||
[2] | In accordance with ASU 2015-07 (Note 2), certain investments that are measured at fair value using the NAV per share practical expedient have not been classified in the fair value hierarchy. Total investments, at fair value, for the year ended December 31, 2015 excludes investments in common/collective trusts, registered investment companies and short-term investment funds with fair values of $251 million, $117 million and $43 million, respectively. Total investments, at fair value, for the year ended December 31, 2014 excludes investments in common/collective trusts, registered investment companies and short-term investment funds with fair values of $278 million, $133 million and $263 million, respectively. |
Benefit Obligations Benefit 126
Benefit Obligations Benefit Obligations (Schedule of Pension Contributions Expected to be Contributed to the Plans) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 23 |
Nonqualified Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 22 |
Postretirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 5 |
Benefit Obligations (Schedul127
Benefit Obligations (Schedule of Pension Benefits Expected to be Paid from the Plans or From the Company's Assets) (Details) $ in Millions | Dec. 31, 2015USD ($) | |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
2,016 | $ 231 | [1] |
2,017 | 230 | [1] |
2,018 | 229 | [1] |
2,019 | 228 | [1] |
2,020 | 227 | [1] |
2021-2025 | 1,111 | [1] |
Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
2,016 | 5 | [2] |
2,017 | 5 | [2] |
2,018 | 5 | [2] |
2,019 | 4 | [2] |
2,020 | 4 | [2] |
2021-2025 | $ 21 | [2] |
[1] | Payments are expected to be made primarily from plan assets. | |
[2] | Payments are expected to be made primarily from Company assets. |
Benefit Obligations (Plan Asset
Benefit Obligations (Plan Assets Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected return on plan assets | 7.80% | 8.20% | 8.00% | |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 23 | |||
United States Pension Plan of US Entity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actual return on plan assets | (2.50%) | |||
Expected return on plan assets | 8.00% | 8.50% | 8.50% | |
Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 5 | |||
Nonqualified Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 22 | |||
Scenario, Forecast [Member] | United States Pension Plan of US Entity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected return on plan assets | 7.50% |
Environmental (Schedule of Envi
Environmental (Schedule of Environmental Remediation Reserves) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Environmental Remediation Obligations [Abstract] | ||
Demerger obligations (Note 24) | $ 22 | $ 25 |
Divestiture obligations (Note 24) | 17 | 21 |
Active sites | 18 | 23 |
US Superfund sites | 13 | 12 |
Other environmental remediation reserves | 2 | 3 |
Total | $ 72 | $ 84 |
Environmental (Remediation Narr
Environmental (Remediation Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Spondon, UK, Former Owner [Member] | Consumer Specialties [Member] | ||
Environmental Disclosure [Line Items] | ||
Environmental insurance recoveries receivable | $ 4 | $ 4 |
Environmental (Schedule of E131
Environmental (Schedule of Environmental Ownership and Liability Percentages) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Environmental Disclosure [Line Items] | |||
Reserves | $ 72 | $ 84 | |
InfraServ GmbH & Co. Gendorf KG [Member] | |||
Environmental Disclosure [Line Items] | |||
Ownership percentage | 39.00% | ||
Liability percentage | 10.00% | ||
Reserves | [1] | $ 10 | |
InfraServ GmbH & Co. Hoechst KG [Member] | |||
Environmental Disclosure [Line Items] | |||
Ownership percentage | 32.00% | ||
Liability percentage | 40.00% | ||
Reserves | [1] | $ 64 | |
InfraServ GmbH & Co. Knapsack KG [Member] | |||
Environmental Disclosure [Line Items] | |||
Ownership percentage | 27.00% | ||
Liability percentage | 22.00% | ||
Reserves | [1] | $ 1 | |
[1] | Gross reserves maintained by the respective InfraServ entity. |
Environmental (German Infraserv
Environmental (German Infraservs Narrative) (Details) | Dec. 31, 2015 |
Environmental Remediation Obligations [Abstract] | |
Demerger obligations indemnification percentage | 66.66% |
Other demerger obligations indemnification percentage | 66.66% |
Environmental Environmental (US
Environmental Environmental (US Superfund Sites Narrative) (Details) - Passaic River, New Jersey [Member] - USD ($) $ in Millions | Apr. 11, 2014 | Dec. 31, 2015 |
Site Contingency [Line Items] | ||
EPA proposed remedial alternative, low estimate | $ 365 | |
EPA proposed remedial alternative, high estimate | $ 3,200 | |
EPA proposed remedial alternative | $ 1,700 | |
Environmental Liability Percentage | 1.00% |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Dividend Increases) (Details) - $ / shares | 1 Months Ended | |||
Apr. 30, 2015 | Apr. 30, 2014 | Jul. 31, 2013 | Apr. 30, 2013 | |
Schedule of Dividend Increases [Line Items] | ||||
Percent increase in common stock dividend | 20.00% | 39.00% | 100.00% | 20.00% |
Common Stock, Dividends, Per Share, Board Increase Announcement, Quarterly | $ 0.300 | $ 0.250 | $ 0.180 | $ 0.090 |
Common stock, Dividends, Per Share, Board Increase Announcement, Annual | $ 1.20 | $ 1 | $ 0.72 | $ 0.36 |
Stockholders' Equity (Schedu135
Stockholders' Equity (Schedule of Treasury Stock) (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 09, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |||||
Class of Stock [Line Items] | ||||||||||
Share repurchase plan, authorized repurchase amount | [1] | $ 2,366 | $ 2,366 | |||||||
Shares repurchased | 6,640,601 | [2] | 4,338,488 | [2] | 3,186,180 | [2] | 27,307,796 | [1] | ||
Average purchase price per share | $ 63.31 | $ 57.61 | $ 51.38 | $ 48.90 | ||||||
Amount spent on repurchased shares (in millions) | $ 420 | $ 250 | $ 164 | $ 1,335 | ||||||
Aggregate Board of Directors repurchase authorizations during the period | $ 1,000 | $ 1,000 | [1] | $ 473 | [1] | $ 0 | [1] | |||
Restricted Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares withheld, tax withholding | 9,264 | 6,021 | ||||||||
[1] | These authorizations give management discretion in determining the timing and conditions under which shares may be repurchased. This repurchase program began in February 2008 and does not have an expiration date. In September 2015, the Board of Directors approved a new $1.0 billion share repurchase authorization. | |||||||||
[2] | The years ended December 31, 2015 and 2013 exclude 9,264 and 6,021 shares, respectively, withheld from an executive officer to cover statutory minimum withholding requirements for personal income taxes related to the vesting of restricted stock. Restricted stock awards are considered outstanding at the time of issuance. Accordingly, the shares withheld are treated as treasury shares. |
Stockholders' Equity (Schedu136
Stockholders' Equity (Schedule of Components of Other Comprehensive Income (Loss), Net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Comprehensive Income (Loss) [Line Items] | |||
Unrealized gain (loss) on marketable securities, gross amount | $ 0 | $ 0 | $ 1 |
Unrealized gain (loss) on marketable securities, income tax (provision) benefit | 0 | 1 | 0 |
Unrealized gain (loss) on marketable securities, net amount | 0 | 1 | 1 |
Foreign currency translation, gross amount | (193) | (188) | 55 |
Foreign currency translation, income tax (provision) benefit | 5 | 40 | (35) |
Foreign currency translation, net amount | (188) | (148) | 20 |
Gain (loss) on cash flow hedges, gross amount | 3 | 0 | 9 |
Gain (loss) on cash flow hedges, income tax (provision) benefit | (1) | 40 | (3) |
Gain (loss) on cash flow hedges, net amount | 2 | 40 | 6 |
Pension and postretirement benefits, gross amount | 4 | (84) | 88 |
Pension and postretirement benefits, income tax (provision) benefit | (1) | 30 | (30) |
Pension and postretirement benefits, net amount | 3 | (54) | 58 |
Total other comprehensive income (loss), gross amount | (186) | (272) | 153 |
Total other comprehensive income (loss), income tax (provision) benefit | 3 | 111 | (68) |
Total other comprehensive income (loss), net of tax | $ (183) | $ (161) | $ 85 |
Stockholders' Equity (Schedu137
Stockholders' Equity (Schedule of Adjustments to Accumulated Other Comprehensive Income (Loss), Net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of the beginning of the period | $ (165) | $ (4) | $ (89) |
Amounts reclassified from accumulated other comprehensive income (loss) | (186) | (272) | 153 |
Other comprehensive income (loss) before reclassifications | (189) | (198) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 3 | (74) | 0 |
Income tax (provision) benefit | 3 | 111 | (68) |
Balance as of the end of the period | (348) | (165) | (4) |
Unrealized Gain (Loss) on Marketable Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of the beginning of the period | 1 | 0 | (1) |
Amounts reclassified from accumulated other comprehensive income (loss) | 1 | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Income tax (provision) benefit | 0 | 1 | 0 |
Balance as of the end of the period | 1 | 1 | 0 |
Foreign Currency Translation [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of the beginning of the period | (151) | (3) | (23) |
Amounts reclassified from accumulated other comprehensive income (loss) | 55 | ||
Other comprehensive income (loss) before reclassifications | (193) | (188) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Income tax (provision) benefit | 5 | 40 | (35) |
Balance as of the end of the period | (339) | (151) | (3) |
Gain (Loss) from Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of the beginning of the period | (4) | (44) | (50) |
Amounts reclassified from accumulated other comprehensive income (loss) | (2) | ||
Other comprehensive income (loss) before reclassifications | (2) | (9) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 5 | 9 | 11 |
Income tax (provision) benefit | (1) | 40 | (3) |
Balance as of the end of the period | (2) | (4) | (44) |
Pension and Postretirement Benefits [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of the beginning of the period | (11) | 43 | (15) |
Amounts reclassified from accumulated other comprehensive income (loss) | 99 | ||
Other comprehensive income (loss) before reclassifications | 6 | (1) | |
Amounts reclassified from accumulated other comprehensive income (loss) | (2) | (83) | (11) |
Income tax (provision) benefit | (1) | 30 | (30) |
Balance as of the end of the period | $ (8) | $ (11) | $ 43 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - Subsequent Event [Member] $ / shares in Units, $ in Millions | Feb. 04, 2016USD ($)$ / shares |
Equity, Class of Treasury Stock [Line Items] | |
Quarterly cash dividend per share | $ / shares | $ 0.30 |
Cash dividend | $ | $ 44 |
Other (Charges) Gains, Net (Sch
Other (Charges) Gains, Net (Schedule of Other (Charges) Gains, Net) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Employee termination benefits (Note 4) | $ (53) | [1] | $ (7) | $ (23) |
Kelsterbach plant relocation (Note 4) | 0 | 0 | (13) | |
Asset impairments | (126) | 0 | (81) | |
Other plant/office closures | 0 | 2 | (33) | |
Singapore contract termination | (174) | 0 | 0 | |
Commercial disputes | 2 | 11 | (8) | |
Other | 0 | 9 | 0 | |
Total | (351) | $ 15 | $ (158) | |
Pension Benefits [Member] | Industrial Specialties [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Special Termination Benefits recorded in Benefit Obligations | $ (1) | |||
[1] | Includes $1Â million of special termination benefits included in Benefit obligations in the consolidated balance sheet as of December 31, 2015 and is included in the Company's Industrial Specialties segment. |
Other (Charges) Gains, Net (140
Other (Charges) Gains, Net (Schedule of Restructuring Reserves) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Restructuring Cost and Reserve [Line Items] | |||
Reserve as of the end of the period | $ 30 | ||
Total | 30 | ||
Employee Termination Benefits [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Reserve as of the beginning of the period | 14 | $ 29 | |
Additions | 52 | 7 | |
Cash payments | (28) | (21) | |
Other changes | (6) | 0 | |
Exchange rate changes | (2) | (1) | |
Reserve as of the end of the period | 30 | 14 | |
Total | 14 | 29 | |
Plant/Office Closures [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Reserve as of the beginning of the period | 7 | 33 | |
Additions | 0 | 0 | |
Cash payments | (6) | (9) | |
Other changes | 0 | (15) | |
Exchange rate changes | (1) | (2) | |
Reserve as of the end of the period | 0 | 7 | |
Total | 7 | 33 | |
Advanced Engineered Materials [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Reserve as of the end of the period | 3 | ||
Total | 3 | ||
Advanced Engineered Materials [Member] | Employee Termination Benefits [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Reserve as of the beginning of the period | 4 | 4 | |
Additions | 7 | 1 | |
Cash payments | (4) | (1) | |
Other changes | (3) | 0 | |
Exchange rate changes | (1) | 0 | |
Reserve as of the end of the period | 3 | 4 | |
Total | 4 | 4 | |
Advanced Engineered Materials [Member] | Plant/Office Closures [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Reserve as of the beginning of the period | 0 | 0 | |
Additions | 0 | 0 | |
Cash payments | 0 | 0 | |
Other changes | 0 | 0 | |
Exchange rate changes | 0 | 0 | |
Reserve as of the end of the period | 0 | 0 | |
Total | 0 | 0 | |
Consumer Specialties [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Reserve as of the end of the period | 14 | ||
Total | 14 | ||
Consumer Specialties [Member] | Employee Termination Benefits [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Reserve as of the beginning of the period | 1 | 3 | |
Additions | 25 | 1 | |
Cash payments | (12) | (3) | |
Other changes | 0 | 0 | |
Exchange rate changes | 0 | 0 | |
Reserve as of the end of the period | 14 | 1 | |
Total | 1 | 3 | |
Consumer Specialties [Member] | Plant/Office Closures [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Reserve as of the beginning of the period | 0 | 0 | |
Additions | 0 | 0 | |
Cash payments | 0 | 0 | |
Other changes | 0 | 0 | |
Exchange rate changes | 0 | 0 | |
Reserve as of the end of the period | 0 | 0 | |
Total | 0 | 0 | |
Industrial Specialties [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Reserve as of the end of the period | 6 | ||
Total | 6 | ||
Industrial Specialties [Member] | Employee Termination Benefits [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Reserve as of the beginning of the period | 1 | 2 | |
Additions | 9 | 1 | |
Cash payments | (4) | (2) | |
Other changes | 0 | 0 | |
Exchange rate changes | 0 | 0 | |
Reserve as of the end of the period | 6 | 1 | |
Total | 1 | 2 | |
Industrial Specialties [Member] | Plant/Office Closures [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Reserve as of the beginning of the period | 0 | 0 | |
Additions | 0 | 0 | |
Cash payments | 0 | 0 | |
Other changes | 0 | 0 | |
Exchange rate changes | 0 | 0 | |
Reserve as of the end of the period | 0 | 0 | |
Total | 0 | 0 | |
Acetyl Intermediates [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Reserve as of the end of the period | 1 | ||
Total | 1 | ||
Acetyl Intermediates [Member] | Contract Termination [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Other changes | (13) | ||
Acetyl Intermediates [Member] | Employee Termination Benefits [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Reserve as of the beginning of the period | 5 | 16 | |
Additions | 2 | 4 | |
Cash payments | (5) | (14) | |
Other changes | 0 | 0 | |
Exchange rate changes | (1) | (1) | |
Reserve as of the end of the period | 1 | 5 | |
Total | 5 | 16 | |
Acetyl Intermediates [Member] | Plant/Office Closures [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Reserve as of the beginning of the period | 7 | 33 | |
Additions | 0 | 0 | |
Cash payments | (6) | (9) | |
Other changes | 0 | (15) | [1] |
Exchange rate changes | (1) | (2) | |
Reserve as of the end of the period | 0 | 7 | |
Total | 7 | 33 | |
Other [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Reserve as of the end of the period | 6 | ||
Total | 6 | ||
Other [Member] | Employee Termination Benefits [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Reserve as of the beginning of the period | 3 | 4 | |
Additions | 9 | 0 | |
Cash payments | (3) | (1) | |
Other changes | (3) | 0 | |
Exchange rate changes | 0 | 0 | |
Reserve as of the end of the period | 6 | 3 | |
Total | 3 | 4 | |
Other [Member] | Plant/Office Closures [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Reserve as of the beginning of the period | 0 | 0 | |
Additions | 0 | 0 | |
Cash payments | 0 | 0 | |
Other changes | 0 | 0 | |
Exchange rate changes | 0 | 0 | |
Reserve as of the end of the period | 0 | 0 | |
Total | $ 0 | $ 0 | |
[1] | Includes a $13 million non-cash reduction to take-or-pay contract termination penalties. |
Other (Charges) Gains, Net (Nar
Other (Charges) Gains, Net (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 01, 2015 | Apr. 22, 2015 | |||
Other (Charges) Gains, Net [Line Items] | ||||||||||
Employee termination benefits | $ (53) | [1] | $ (7) | $ (23) | ||||||
Asset impairments | (126) | 0 | (81) | |||||||
Singapore contract termination | (174) | 0 | $ 0 | |||||||
Employee Termination Benefits [Member] | ||||||||||
Other (Charges) Gains, Net [Line Items] | ||||||||||
Employee termination benefits | (21) | |||||||||
Consumer Specialties [Member] | ||||||||||
Other (Charges) Gains, Net [Line Items] | ||||||||||
Commercial disputes | 15 | |||||||||
Acetyl Intermediates [Member] | ||||||||||
Other (Charges) Gains, Net [Line Items] | ||||||||||
Commercial disputes | 8 | |||||||||
Asset impairments | $ (46) | |||||||||
Lanaken, Belgium | Consumer Specialties [Member] | ||||||||||
Other (Charges) Gains, Net [Line Items] | ||||||||||
Employee termination benefits | [2] | $ (24) | ||||||||
Capacity Reduction Percentage | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | |||||
Meredosia, IL [Member] | Industrial Specialties [Member] | ||||||||||
Other (Charges) Gains, Net [Line Items] | ||||||||||
Employee termination benefits | [3] | $ (1) | ||||||||
Asset impairments | [3] | (1) | ||||||||
Nanjing, China [Member] | ||||||||||
Other (Charges) Gains, Net [Line Items] | ||||||||||
Asset impairments | (123) | |||||||||
Nanjing, China [Member] | Acetyl Intermediates [Member] | ||||||||||
Other (Charges) Gains, Net [Line Items] | ||||||||||
Asset impairments | $ (123) | |||||||||
SINGAPORE | ||||||||||
Other (Charges) Gains, Net [Line Items] | ||||||||||
Singapore contract termination | (174) | |||||||||
SINGAPORE | Acetyl Intermediates [Member] | ||||||||||
Other (Charges) Gains, Net [Line Items] | ||||||||||
Singapore contract termination | $ (174) | |||||||||
Roussillon, France and Tarragona, Spain [Member] | Acetyl Intermediates [Member] | ||||||||||
Other (Charges) Gains, Net [Line Items] | ||||||||||
Employee termination benefits | (4) | |||||||||
Roussillon, France [Member] | Acetyl Intermediates [Member] | ||||||||||
Other (Charges) Gains, Net [Line Items] | ||||||||||
Employee termination benefits | (6) | |||||||||
Asset impairments | (3) | |||||||||
Contract termination costs | (3) | |||||||||
Tarragona, Spain [Member] | Industrial Specialties [Member] | ||||||||||
Other (Charges) Gains, Net [Line Items] | ||||||||||
Employee termination benefits | [4] | (6) | ||||||||
Asset impairments | [4] | (1) | ||||||||
Tarragona, Spain [Member] | Acetyl Intermediates [Member] | ||||||||||
Other (Charges) Gains, Net [Line Items] | ||||||||||
Employee termination benefits | (14) | |||||||||
Asset impairments | (31) | |||||||||
Contract termination costs | $ (30) | 2 | ||||||||
Other Commercial Actions [Member] | ||||||||||
Other (Charges) Gains, Net [Line Items] | ||||||||||
Commercial disputes | $ (12) | |||||||||
Pension Plan [Member] | Industrial Specialties [Member] | ||||||||||
Other (Charges) Gains, Net [Line Items] | ||||||||||
Special Termination Benefits recorded in Benefit Obligations | $ (1) | |||||||||
[1] | Includes $1Â million of special termination benefits included in Benefit obligations in the consolidated balance sheet as of December 31, 2015 and is included in the Company's Industrial Specialties segment. | |||||||||
[2] | Included in Other (charges) gains, net in the consolidated statements of operations. | |||||||||
[3] | Included in Other (charges) gains, net in the consolidated statements of operations. | |||||||||
[4] | Included in Other (charges) gains, net in the consolidated statements of operations. |
Income Taxes (Schedule of Earni
Income Taxes (Schedule of Earnings (Loss) from Continuing Operations Before Tax by Jurisdiction) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Income Taxes [Line Items] | ||||
US | $ 231 | $ 534 | $ 806 | |
International | [1] | 257 | 407 | 803 |
Earnings (loss) from continuing operations before tax | $ 488 | $ 941 | $ 1,609 | |
Effective income tax rate | 41.00% | 33.00% | 32.00% | |
Aggregated Geographical [Member] | ||||
Income Taxes [Line Items] | ||||
International | $ 330 | $ 308 | $ 275 | |
Effective income tax rate | 6.10% | 4.80% | 4.00% | |
[1] | Includes aggregate earnings generated by operations in Bermuda, Luxembourg, the Netherlands and Hong Kong of $330 million, $308 million and $275 million for the years ended December 31, 2015, 2014 and 2013, respectively, which have an aggregate effective income tax rate of 6.1%, 4.8% and 4.0% for each year, respectively. |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income Tax Provision (Benefit)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
US | $ 28 | $ 108 | $ 78 |
International | 152 | 56 | 83 |
Total | 180 | 164 | 161 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
US | 54 | 156 | 194 |
International | (33) | (6) | 153 |
Total | 21 | 150 | 347 |
Income tax provision (benefit) | $ 201 | $ 314 | $ 508 |
Income Taxes Income Taxes (Sche
Income Taxes Income Taxes (Schedule of Effective Tax Rate Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | |||
Income tax provision computed at US federal statutory tax rate | $ 171 | $ 329 | $ 563 |
Change in valuation allowance | 124 | 49 | 89 |
Equity income and dividends | (33) | (50) | (44) |
(Income) expense not resulting in tax impact, net | (32) | (34) | (33) |
US tax effect of foreign earnings and dividends | 15 | 49 | 35 |
Foreign tax credits | (4) | (34) | (38) |
Other foreign tax rate differentials | (41) | (33) | (55) |
Legislative changes | 0 | 0 | (19) |
Tax-deductible interest on foreign equity investments and other related items | 0 | 12 | 11 |
State income taxes, net of federal benefit | 6 | 9 | 11 |
Other, net | (5) | 17 | (12) |
Income tax provision (benefit) | $ 201 | $ 314 | $ 508 |
Effective income tax rate | 41.00% | 33.00% | 32.00% |
UNITED STATES | |||
Income Taxes [Line Items] | |||
US federal statutory tax rate | 35.00% |
Income Taxes (Income Tax Provis
Income Taxes (Income Tax Provision Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Tax Credit Carryforward [Line Items] | |||
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | $ 29 | ||
Asset impairments | (126) | $ 0 | $ (81) |
Singapore contract termination | (174) | $ 0 | $ 0 |
Accumulated but undistributed earnings permanently reinvested in business | $ 3,900 | ||
Effective income tax rate | 41.00% | 33.00% | 32.00% |
SINGAPORE | |||
Tax Credit Carryforward [Line Items] | |||
Singapore contract termination | $ (174) | ||
Nanjing, China [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Asset impairments | $ (123) |
Income Taxes (Schedule of Conso
Income Taxes (Schedule of Consolidated Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Tax Assets | |||
Pension and postretirement obligations | $ 434 | $ 424 | |
Accrued expenses | 40 | 41 | |
Inventory | 14 | 10 | |
Net operating loss | 683 | 468 | |
Tax credit carryforwards | 88 | 100 | |
Other | 202 | 165 | |
Subtotal | 1,461 | 1,208 | |
Valuation allowance | [1] | (448) | (413) |
Total | 1,013 | 795 | |
Deferred Tax Liabilities | |||
Depreciation and amortization | 380 | 416 | |
Investments in affiliates | 395 | 143 | |
Other | 114 | 102 | |
Total | 889 | 661 | |
Net deferred tax assets (liabilities) | $ 124 | $ 134 | |
[1] | Includes deferred tax asset valuation allowances for the Company's deferred tax assets in the US, Luxembourg, Spain, China, Singapore, the United Kingdom, Canada and France. These valuation allowances relate primarily to net operating loss carryforward benefits and other net deferred tax assets, all of which may not be realizable. |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Taxes Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Income Tax Disclosure [Abstract] | |
Valuation allowance change | $ 35 |
Valuation allowance, deferred tax asset, change in amount, income tax expense | 124 |
Valuation allowance, deferred tax asset, change in amount, foreign currency translation adjustment | 22 |
Net operating loss expirations | $ 67 |
Income Taxes (Legislative Chang
Income Taxes (Legislative Changes Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | ||||
Deferred foreign tax expense (benefit) | $ (33) | $ (6) | $ 153 | |
Current foreign tax expense (benefit) | $ 152 | $ 56 | 83 | |
MEXICO | ||||
Income Taxes [Line Items] | ||||
Mexico federal statutory tax rate | 30.00% | |||
Deferred foreign tax expense (benefit) | (46) | |||
Current foreign tax expense (benefit) | 27 | |||
Foreign tax expense (benefit) | $ (19) |
Income Taxes (Net Operating Los
Income Taxes (Net Operating Loss Carryforwards Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
US Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 26 |
Net operating loss carryforward expiration | Dec. 31, 2021 |
State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 47 |
Valuation allowance offset for State net operating loss carryforwards due to uncertain recoverability | 46 |
Foreign Tax Authority [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 2,300 |
CHINA | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforward expiration | Dec. 31, 2011 |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation of Unrecognized Tax Benefits Included in Uncertain Tax Positions) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Income Tax Disclosure [Abstract] | ||||
As of the beginning of the year | $ 228 | $ 244 | $ 218 | |
Increases in tax positions for the current year | 13 | 7 | 3 | |
Increases in tax positions for prior years | 76 | 24 | 57 | |
Decreases in tax positions for prior years | (126) | (46) | (32) | |
Decreases due to settlements | (33) | (1) | (2) | |
As of the end of the year | 158 | 228 | 244 | |
Total uncertain tax positions that if recognized would impact the effective tax rate | 144 | 245 | 258 | |
Total amount of interest expense (benefit) and penalties recognized in the consolidated statements of operations | (12) | [1] | 2 | 12 |
Total amount of interest expense and penalties recognized in the consolidated balance sheets | 43 | $ 67 | $ 65 | |
Decreases in interest and penalties due to settlements | $ (12) | |||
[1] | This amount reflects interest on uncertain tax positions, the impact of currency and release of certain tax positions as a result of audit closure that was reflected in the consolidated statements of operations. In addition, the Company also paid an additional $12 million of previously accrued amounts due to settlements of tax examinations. |
Income Taxes (Uncertain Tax Pos
Income Taxes (Uncertain Tax Positions Narrative) (Details) - FRANCE - EUR (€) € in Millions | 1 Months Ended | |
Dec. 31, 2013 | Jun. 30, 2014 | |
Income Tax Examination [Line Items] | ||
Estimate of incremental tax expense | € 81 | |
Net operating loss carryforwards | € 141 |
Management Compensation Plan152
Management Compensation Plans (Schedule of Total Shares Available for and Subject to Awards) (Details) | Dec. 31, 2015shares | |
Global Incentive Plan 2009 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares Available for Awards | 6,949,926 | |
Shares Subject to Outstanding Awards | 2,736,369 | |
Stock Incentive Plan 2004 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares Available for Awards | 0 | |
Shares Subject to Outstanding Awards | 94,500 | [1] |
[1] | No RSUs remain outstanding under the 2004 Stock Incentive Plan. |
Management Compensation Plan153
Management Compensation Plans (Schedule of Realized Income Tax Benefits from Stock Option Exercises and RSU Vestings) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Income tax benefit realized | $ 2 | $ 2 | $ 2 |
Amount reversed in current year related to prior year | $ 0 | $ 0 | $ 0 |
Management Compensation Plan154
Management Compensation Plans (Schedule of Summary of Changes in Stock Options Outstanding) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
As of beginning of period, number of options | 343 | |
Granted, number of options | 0 | |
Exercised, number of options | (94) | |
Forfeited, number of options | 0 | |
Expired, number of options | 0 | |
As of end of period, number of options | 249 | 343 |
Options exercisable at end of year, number of options | 239 | |
As of beginning of period, weighted average exercise price | $ 33.72 | |
Granted, weighted average exercise price | 0 | |
Exercised, weighted average exercise price | 29.82 | |
Forfeited, weighted average exercise price | 0 | |
Expired, weighted average exercise price | 0 | |
As of end of period, weighted average exercise price | 35.19 | $ 33.72 |
Options exercisable at end of year, weighted average exercise price | $ 34.74 | |
As of beginning of period, weighted average remaining contractual term | 2 years 5 months | 3 years 2 months |
As of end of period, weighted average remaining contractual term | 2 years 5 months | 3 years 2 months |
Options exercisable at end of year, weighted average remaining contractual term | 2 years 4 months | |
As of beginning of period, aggregate intrinsic value | $ 7 | |
As of end of period, aggregate intrinsic value | 9 | $ 7 |
Options exercisable at end of year, aggregate intrinsic value | $ 9 |
Management Compensation Plan155
Management Compensation Plans (Schedule of Black-Scholes Option Pricing Method Assumptions) (Details) - Employee Stock Option [Member] | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 0.68% |
Estimated life in years | 4 years 6 months |
Dividend yield | 0.64% |
Volatility | 49.50% |
Management Compensation Plan156
Management Compensation Plans (Schedule of Weighted Average Grant Date Fair Values of Stock Options) (Details) | 12 Months Ended |
Dec. 31, 2013$ / shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Total | $ 18.50 |
Management Compensation Plan157
Management Compensation Plans (Schedule of Intrinsic Value of Stock Option Exercises) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Intrinsic value | $ 4 | $ 7 | $ 6 |
Management Compensation Plan158
Management Compensation Plans (Schedule of Summary of Changes in Performance-based RSUs Outstanding) (Details) - Performance Shares [Member] shares in Thousands | 12 Months Ended | |
Dec. 31, 2015$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
As of beginning of period, number of units | shares | 1,027 | |
Vested, number of units | shares | (506) | |
Canceled, number of units | shares | 0 | |
Forfeited, number of units | shares | (57) | |
As of end of period, number of units | shares | 1,231 | |
As of beginning of period, weighted average fair value | $ / shares | $ 48.02 | |
Vested, weighted average fair value | $ / shares | 47.32 | |
Canceled, weighted average fair value | $ / shares | 0 | |
Forfeited, weighted average fair value | $ / shares | 49.12 | |
As of end of period, weighted average fair value | $ / shares | $ 50.24 | |
2015 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, number of units | shares | 514 | |
Granted, weighted average fair value | $ / shares | $ 53.13 | |
2013 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, number of units | shares | 253 | [1] |
Granted, weighted average fair value | $ / shares | $ 47.32 | [1] |
[1] | Represents additional performance-based RSU grants in 2013 that were awarded in 2015 as a result of achieving internal profitability targets. |
Management Compensation Plan159
Management Compensation Plans (Schedule of Fair Value of Shares Vested for Performance-based RSUs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total | $ 27 | $ 0 | $ 10 |
Management Compensation Plan160
Management Compensation Plans (Schedule of Summary of Changes in Time-based RSUs Outstanding) (Details) - Time Restricted Stock Units (RSUs) [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Employee [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
As of beginning of period, number of units | shares | 112 |
Granted, number of units | shares | 75 |
Vested, number of units | shares | (81) |
Forfeited, number of units | shares | (1) |
As of end of period, number of units | shares | 105 |
As of beginning of period, weighted average fair value | $ / shares | $ 45.87 |
Granted, weighted average fair value | $ / shares | 63.67 |
Vested, weighted average fair value | $ / shares | 43.10 |
Forfeited, weighted average fair value | $ / shares | 48.15 |
As of end of period, weighted average fair value | $ / shares | $ 60.78 |
Director [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
As of beginning of period, number of units | shares | 19 |
Granted, number of units | shares | 14 |
Vested, number of units | shares | (19) |
Forfeited, number of units | shares | 0 |
As of end of period, number of units | shares | 14 |
As of beginning of period, weighted average fair value | $ / shares | $ 58.48 |
Granted, weighted average fair value | $ / shares | 64.94 |
Vested, weighted average fair value | $ / shares | 58.48 |
Forfeited, weighted average fair value | $ / shares | 0 |
As of end of period, weighted average fair value | $ / shares | $ 64.94 |
Management Compensation Plan161
Management Compensation Plans (Schedule of Fair Value of Shares Vested for Time-based RSUs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Time Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total | $ 6 | $ 9 | $ 12 |
Management Compensation Plan162
Management Compensation Plans (Restricted Stock Units Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Performance Restricted and Time Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense | $ 22 |
Weighted average term to recognize compensation expense | 1 year |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Range of number of shares that will vest | zero to stretch |
Director [Member] | Time Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 1 year |
Employee [Member] | Time Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Management Compensation Plans M
Management Compensation Plans Management Compensation Plans (Schedule of Employee Stock Purchase Plan Narrative) (Details) | 12 Months Ended |
Dec. 31, 2015shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 55,240 |
Leases (Schedule of Rent Expens
Leases (Schedule of Rent Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases [Abstract] | |||
Total | $ 154 | $ 161 | $ 160 |
Leases (Schedule of Future Mini
Leases (Schedule of Future Minimum Lease Payments for Capital Leases) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Leases [Abstract] | |
2,016 | $ 46 |
2,017 | 46 |
2,018 | 45 |
2,019 | 45 |
2,020 | 45 |
Later years | 195 |
Sublease income | 0 |
Minimum lease commitments | 422 |
Less amounts representing interest | (184) |
Present value of net minimum lease obligations | $ 238 |
Leases (Schedule of Future M166
Leases (Schedule of Future Minimum Rental Payments for Operating Leases) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Leases [Abstract] | |
2,016 | $ 66 |
2,017 | 43 |
2,018 | 34 |
2,019 | 31 |
2,020 | 23 |
Later years | 97 |
Sublease income | 3 |
Minimum lease commitments | $ 291 |
Derivative Financial Instrum167
Derivative Financial Instruments (Schedule of Interest Rate Swap Derivatives) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Notional Value | $ 500 | ||
Swap Derivative 1 Point 02 Percent Maturing January 2, 2016 [Member] | |||
Derivative [Line Items] | |||
Notional Value | $ 500 | $ 500 | $ 500 |
Effective Date | Jan. 2, 2014 | Jan. 2, 2014 | |
Expiration Date | Jan. 2, 2016 | Jan. 2, 2016 | |
Fixed Rate | 1.02% | 0.94% | 1.02% |
Derivative Financial Instrum168
Derivative Financial Instruments Derivative Financial Instruments (Schedule of Cross Currency Swaps) (Details) € in Millions, $ in Millions | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2015EUR (€) | Mar. 31, 2015USD ($) |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) on Derivative Instruments, Net, Pretax | $ 1 | |||
Notional Value | $ 500 | |||
Derivative, Cash Received on Hedge | $ 88 | |||
Swap Derivative 4 Point 27 Percent Maturing September 11, 2020 [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional Value | $ 250 | |||
Swap Derivative 2 Point 63 Percent Maturing September 11, 2020 [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional Value | € | € 193 | |||
Swap Derivative 3 Point 62 Percent Maturing April 17, 2019 [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional Value | $ 225 | |||
Swap Derivative 2 Point 77 Percent Maturing April 17, 2019 [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional Value | € | € 162 |
Derivative Financial Instrum169
Derivative Financial Instruments (Schedule of Notional Amounts of Net Foreign Exchange Exposure by Currency) (Details) - Foreign Exchange Contract [Member] $ in Millions | Dec. 31, 2015USD ($) |
Derivative [Line Items] | |
Total | $ 70 |
Brazilian Real [Member] | |
Derivative [Line Items] | |
Total | (10) |
British Pound Sterling [Member] | |
Derivative [Line Items] | |
Total | (88) |
Canadian Dollar [Member] | |
Derivative [Line Items] | |
Total | 25 |
Euro [Member] | |
Derivative [Line Items] | |
Total | 127 |
Hungarian Forint [Member] | |
Derivative [Line Items] | |
Total | 8 |
Korea (South), Won | |
Derivative [Line Items] | |
Total | 9 |
Mexican Peso [Member] | |
Derivative [Line Items] | |
Total | (31) |
Singapore Dollar [Member] | |
Derivative [Line Items] | |
Total | 22 |
Sweden, Kronor | |
Derivative [Line Items] | |
Total | $ 8 |
Derivative Financial Instrum170
Derivative Financial Instruments (Schedule of Notional Amounts of Foreign Currency Derivatives) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Total | $ 500 | |
Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Total | $ 502 | $ 1,336 |
Derivative Financial Instrum171
Derivative Financial Instruments (Schedule of Interest Rate Swap Activity Recorded in the Consolidated Financial Statements) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Hedging activities - Interest expense | $ (119) | $ (147) | $ (172) | |
Swap Derivative 1 Point 02 Percent Maturing January 2, 2016 [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Expiration Date | Jan. 2, 2016 | Jan. 2, 2016 | ||
Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest Income (Expense), Net | 2 | $ (4) | (11) | |
Ineffective portion - Other income (expense), net | $ 0 | $ 0 | $ 0 |
Derivative Financial Instrum172
Derivative Financial Instruments (Schedule of Changes in Fair Value of Derivatives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Derivative [Line Items] | |||||
Notional Value | $ 500 | ||||
Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Gain (loss) recognized in Other comprehensive income (loss) | 0 | $ (9) | $ (2) | ||
Gain (loss) recognized in Earnings (loss) | 46 | 42 | (11) | ||
Derivatives Not Designated as Hedges [Member] | |||||
Derivative [Line Items] | |||||
Gain (loss) recognized in Other comprehensive income (loss) | 0 | 0 | 0 | ||
Gain (loss) recognized in Earnings (loss) | (83) | (18) | (23) | ||
Foreign Currency Forwards and Swaps [Member] | Derivatives Not Designated as Hedges [Member] | |||||
Derivative [Line Items] | |||||
Gain (loss) recognized in Other comprehensive income (loss) | 0 | 0 | 0 | ||
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Gain (loss) recognized in Other comprehensive income (loss) | 0 | (1) | (2) | ||
Interest Rate Swaps [Member] | Derivatives Not Designated as Hedges [Member] | |||||
Derivative [Line Items] | |||||
Gain (loss) recognized in Other comprehensive income (loss) | 0 | 0 | 0 | ||
Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Gain (loss) recognized in Other comprehensive income (loss) | 0 | (8) | 0 | ||
Interest Expense [Member] | Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Gain (loss) recognized in Earnings (loss) | 0 | (4) | (11) | ||
Interest Expense [Member] | Interest Rate Swaps [Member] | Derivatives Not Designated as Hedges [Member] | |||||
Derivative [Line Items] | |||||
Gain (loss) recognized in Earnings (loss) | (1) | (3) | [1] | 0 | |
Other Income [Member] | Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Gain (loss) recognized in Earnings (loss) | 46 | 46 | 0 | ||
Foreign Currency Gain (Loss) [Member] | Foreign Currency Forwards and Swaps [Member] | Derivatives Not Designated as Hedges [Member] | |||||
Derivative [Line Items] | |||||
Gain (loss) recognized in Earnings (loss) | (82) | (15) | (23) | ||
Net Investment Hedging [Member] | |||||
Derivative [Line Items] | |||||
Gain (Loss) On Non-Derivative Used In Net Investment Hedge | 48 | 23 | 0 | ||
Amount of Ineffectiveness on Net Investment Hedges | 0 | 0 | 0 | ||
Senior Unsecured Notes Due 2019 [Member] | Net Investment Hedging [Member] | |||||
Derivative [Line Items] | |||||
Gain (Loss) On Non-Derivative Used In Net Investment Hedge | 38 | 23 | 0 | ||
Senior Unsecured Notes Due 2019 [Member] | Net Investment Hedging [Member] | Foreign Currency Gain (Loss) [Member] | |||||
Derivative [Line Items] | |||||
Amount of Ineffectiveness on Net Investment Hedges | 0 | 0 | 0 | ||
Term C-2 and C-3 Loan Facilities [Member] | Net Investment Hedging [Member] | |||||
Derivative [Line Items] | |||||
Gain (Loss) On Non-Derivative Used In Net Investment Hedge | [2] | 10 | 0 | 0 | |
Term C-2 and C-3 Loan Facilities [Member] | Net Investment Hedging [Member] | Foreign Currency Gain (Loss) [Member] | |||||
Derivative [Line Items] | |||||
Amount of Ineffectiveness on Net Investment Hedges | [2] | 0 | 0 | $ 0 | |
Swap Derivative 1 Point 02 Percent Maturing January 2, 2016 [Member] | |||||
Derivative [Line Items] | |||||
Notional Value | $ 500 | $ 500 | |||
[1] | In December 2014, the Company dedesignated as cash flow hedges a notional value of $500 million US dollar interest rate swap agreements expiring January 2, 2016. | ||||
[2] | During the three months ended March 31, 2015, the Company designated the Euro-based principal amount of its Term C-2 loan and its Term C-3 loan as a net investment hedge of its investment in a wholly-owned international subsidiary whose functional currency is the Euro to mitigate the volatility caused by the changes in foreign currency exchange rates of the Euro with respect to the US dollar. During the three months ended December 31, 2015, the Company dedesignated the Euro-based principal amount of its Term C-3 loan as a net investment hedge. |
Derivative Financial Instrum173
Derivative Financial Instruments (Schedule of Offsetting Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative Asset [Abstract] | ||
Gross amount recognized | $ 2 | $ 55 |
Gross amount offset in the consolidated balance sheets | 0 | 0 |
Net amount presented in the consolidated balance sheets | 2 | 55 |
Gross amount not offset in the consolidated balance sheets | 0 | 4 |
Net amount | $ 2 | $ 51 |
Derivative Financial Instrum174
Derivative Financial Instruments (Schedule of Offsetting Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative Liability [Abstract] | ||
Gross amount recognized | $ 2 | $ 23 |
Gross amount offset in the consolidated balance sheets | 0 | 0 |
Net amount presented in the consolidated balance sheets | 2 | 23 |
Gross amount not offset in the consolidated balance sheets | 0 | 4 |
Net amount | $ 2 | $ 19 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | $ 2 | $ 55 | |
Total liabilities | (2) | (23) | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 0 | 0 | |
Total liabilities | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 2 | 55 | |
Total liabilities | (2) | (23) | |
Other Noncurrent Liabilities [Member] | Designated as Hedging Instrument [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cross-currency swaps | 0 | (10) | |
Other Noncurrent Liabilities [Member] | Designated as Hedging Instrument [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cross-currency swaps | 0 | 0 | |
Other Noncurrent Liabilities [Member] | Designated as Hedging Instrument [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cross-currency swaps | 0 | (10) | |
Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cross-currency swaps | 0 | (2) | |
Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cross-currency swaps | 0 | 0 | |
Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cross-currency swaps | 0 | (2) | |
Other Current Liabilities [Member] | Derivatives Not Designated as Hedges [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swaps | 0 | (4) | |
Foreign currency forwards and swaps | (2) | (7) | |
Other Current Liabilities [Member] | Derivatives Not Designated as Hedges [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swaps | 0 | 0 | |
Foreign currency forwards and swaps | 0 | 0 | |
Other Current Liabilities [Member] | Derivatives Not Designated as Hedges [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swaps | 0 | (4) | |
Foreign currency forwards and swaps | (2) | (7) | |
Other Current Assets [Member] | Designated as Hedging Instrument [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cross-currency swaps | 0 | 9 | |
Other Current Assets [Member] | Designated as Hedging Instrument [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cross-currency swaps | 0 | 0 | |
Other Current Assets [Member] | Designated as Hedging Instrument [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cross-currency swaps | 0 | 9 | |
Other Current Assets [Member] | Derivatives Not Designated as Hedges [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency forwards and swaps | 2 | 3 | |
Other Current Assets [Member] | Derivatives Not Designated as Hedges [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency forwards and swaps | 0 | 0 | |
Other Current Assets [Member] | Derivatives Not Designated as Hedges [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency forwards and swaps | 2 | 3 | |
Other Noncurrent Assets [Member] | Designated as Hedging Instrument [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cross-currency swaps | 0 | 43 | |
Other Noncurrent Assets [Member] | Designated as Hedging Instrument [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cross-currency swaps | 0 | 0 | |
Other Noncurrent Assets [Member] | Designated as Hedging Instrument [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cross-currency swaps | 0 | 43 | |
Net Investment Hedging [Member] | Term C-2 and C-3 Loan Facilities [Member] | Other Noncurrent Liabilities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
3.250% Notes | [1] | 0 | 0 |
Net Investment Hedging [Member] | Term C-2 and C-3 Loan Facilities [Member] | Other Noncurrent Liabilities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
3.250% Notes | [1] | 0 | 0 |
Net Investment Hedging [Member] | Term C-2 and C-3 Loan Facilities [Member] | Other Noncurrent Liabilities [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
3.250% Notes | [1] | 0 | 0 |
Net Investment Hedging [Member] | Senior Unsecured Notes Due 2019 [Member] | Other Noncurrent Liabilities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
3.250% Notes | [1] | 0 | 0 |
Net Investment Hedging [Member] | Senior Unsecured Notes Due 2019 [Member] | Other Noncurrent Liabilities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
3.250% Notes | [1] | 0 | 0 |
Net Investment Hedging [Member] | Senior Unsecured Notes Due 2019 [Member] | Other Noncurrent Liabilities [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
3.250% Notes | [1] | $ 0 | $ 0 |
[1] | Included in the consolidated balance sheets at carrying amount. During the three months ended December 31, 2015, the Company dedesignated the Euro-based principal amount of its Term C-3 loan as a net investment hedge. |
Fair Value Measurements (Sch176
Fair Value Measurements (Schedule of Carrying Values and Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost investments, carrying amount | $ 151 | $ 145 |
Cost investments, fair value | 0 | 0 |
Insurance contracts in nonqualified pension trusts, carrying amount | 55 | 56 |
Insurance contracts in nonqualified pension trusts, fair value | 55 | 56 |
Long-term debt, including current installments of long-term debt, carrying amount | 2,542 | 2,633 |
Long-term debt, including current installments of long-term debt, fair value | 2,586 | 2,658 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost investments, fair value | 0 | 0 |
Insurance contracts in nonqualified pension trusts, fair value | 55 | 56 |
Long-term debt, including current installments of long-term debt, fair value | 2,348 | 2,398 |
Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost investments, fair value | 0 | 0 |
Insurance contracts in nonqualified pension trusts, fair value | 0 | 0 |
Long-term debt, including current installments of long-term debt, fair value | $ 238 | $ 260 |
Commitments and Contingencies (
Commitments and Contingencies (Guarantees - Demerger and Divesture Obligations Narrative) (Details) € in Millions, $ in Millions | 12 Months Ended | 194 Months Ended | |
Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Indemnification Agreements Hoechst [Member] | |||
Loss Contingencies [Line Items] | |||
Number of divestiture agreements | 19 | 19 | |
Indemnification floor amount | € | € 250 | ||
Indemnification ceiling amount | € | € 750 | ||
Indemnification percentage exceeding ceiling amount | 33.33% | 33.33% | |
Loss contingency accrual, carrying value, payments | $ | $ 71 | ||
Indemnification percentage, other | 33.33% | 33.33% | |
Divestiture Agreements [Member] | |||
Loss Contingencies [Line Items] | |||
Divestiture obligations range, years | 2,037 | ||
Guarantee obligations, maximum exposure | $ | $ 202 |
Commitments and Contingencie178
Commitments and Contingencies (Purchase Obligations Narrative) (Details) $ in Billions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Term of unrecorded unconditional purchase obligations | 2,036 |
Unrecorded unconditional purchase obligations | $ 3 |
Supplemental Cash Flow Infor179
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Cash Flow Information [Abstract] | |||
Interest paid, net of amounts capitalized | $ 120 | $ 146 | $ 166 |
Taxes paid, net of refunds | 151 | 199 | 129 |
Noncash Investing and Financing Activities | |||
Accrued capital expenditures | (37) | 3 | 38 |
Accrued Kelsterbach capital expenditures (Note 4) | 0 | 0 | (2) |
Asset retirement obligations | 3 | 4 | 9 |
Capital expenditure reimbursement | 0 | 4 | 0 |
Capital lease obligations | 6 | 22 | 28 |
Contingent consideration (Note 4) | 0 | 8 | 0 |
Distribution to noncontrolling interest (Note 5) | (4) | 0 | 0 |
Lease incentives | 0 | 0 | 3 |
Mitsui reimbursement | $ 0 | $ 70 | $ (70) |
Segment Information (Schedule o
Segment Information (Schedule of Business Segments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Segment Reporting Information [Line Items] | |||||||
Net sales | $ 5,674 | $ 6,802 | $ 6,510 | ||||
Other (charges) gains, net | (351) | 15 | (158) | ||||
Operating profit (loss) | 326 | 758 | 1,508 | ||||
Equity in net earnings (loss) of affiliates | 181 | 246 | 180 | ||||
Depreciation and amortization | 357 | 292 | 305 | ||||
Capital expenditures | 483 | [1] | 681 | [1] | 408 | [2] | |
Goodwill and intangible assets, net | 830 | 881 | |||||
Total assets | 8,586 | 8,796 | |||||
Increase (decrease) in accrued capital expenditures | (37) | 3 | 38 | ||||
Operating Segments [Member] | Advanced Engineered Materials [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | 1,326 | 1,459 | 1,352 | ||||
Other (charges) gains, net | (7) | (1) | (13) | ||||
Operating profit (loss) | 235 | 221 | 904 | ||||
Equity in net earnings (loss) of affiliates | 150 | 161 | 148 | ||||
Depreciation and amortization | 99 | 106 | 110 | ||||
Capital expenditures | 73 | 65 | 67 | ||||
Goodwill and intangible assets, net | 338 | 358 | |||||
Total assets | 2,324 | 2,484 | |||||
Operating Segments [Member] | Consumer Specialties [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | [3] | 969 | 1,160 | 1,214 | |||
Other (charges) gains, net | (25) | 16 | 0 | ||||
Operating profit (loss) | 262 | 388 | 346 | ||||
Equity in net earnings (loss) of affiliates | 2 | 9 | 3 | ||||
Depreciation and amortization | 60 | 43 | 41 | ||||
Capital expenditures | 65 | 103 | 116 | ||||
Goodwill and intangible assets, net | 249 | 261 | |||||
Total assets | 1,458 | 1,491 | |||||
Operating Segments [Member] | Industrial Specialties [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | 1,082 | 1,224 | 1,155 | ||||
Other (charges) gains, net | (10) | (1) | (4) | ||||
Operating profit (loss) | 72 | 76 | 64 | ||||
Equity in net earnings (loss) of affiliates | 0 | 0 | 0 | ||||
Depreciation and amortization | 64 | 50 | 52 | ||||
Capital expenditures | 56 | 29 | 33 | ||||
Goodwill and intangible assets, net | 49 | 54 | |||||
Total assets | 747 | 823 | |||||
Operating Segments [Member] | Acetyl Intermediates [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | [4] | 2,744 | 3,493 | 3,241 | |||
Other (charges) gains, net | (300) | (3) | (141) | ||||
Operating profit (loss) | (3) | 558 | 153 | ||||
Equity in net earnings (loss) of affiliates | 6 | 20 | 5 | ||||
Depreciation and amortization | 123 | [5] | 81 | 86 | |||
Capital expenditures | 282 | 478 | 184 | ||||
Goodwill and intangible assets, net | 194 | 208 | |||||
Total assets | 2,387 | 2,495 | |||||
Corporate, Non-Segment [Member] | Other Activities [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | 0 | 0 | 0 | ||||
Other (charges) gains, net | (9) | 4 | 0 | ||||
Operating profit (loss) | (240) | (485) | 41 | ||||
Equity in net earnings (loss) of affiliates | 23 | 56 | 24 | ||||
Depreciation and amortization | 11 | 12 | 16 | ||||
Capital expenditures | 7 | 6 | 8 | ||||
Goodwill and intangible assets, net | 0 | 0 | |||||
Total assets | 1,670 | 1,503 | |||||
Intersegment [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | (447) | (534) | (452) | ||||
Other (charges) gains, net | 0 | 0 | 0 | ||||
Operating profit (loss) | 0 | 0 | 0 | ||||
Equity in net earnings (loss) of affiliates | 0 | 0 | 0 | ||||
Depreciation and amortization | 0 | 0 | 0 | ||||
Capital expenditures | 0 | 0 | 0 | ||||
Goodwill and intangible assets, net | 0 | 0 | |||||
Total assets | 0 | 0 | |||||
Intersegment [Member] | Consumer Specialties [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | 0 | 2 | 4 | ||||
Intersegment [Member] | Acetyl Intermediates [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | $ 447 | $ 532 | $ 448 | ||||
[1] | Includes a decrease in accrued capital expenditures of $37 million and an increase of $3 million for the years ended December 31, 2015 and 2014, respectively. | ||||||
[2] | Excludes expenditures related to the relocation of the Company's POM operations in Germany (Note 4) and includes an increase in accrued capital expenditures of $38 million for the year ended December 31, 2013. | ||||||
[3] | Includes intersegment sales of $0 million, $2 million and $4 million for the years ended December 31, 2015, 2014 and 2013, respectively. | ||||||
[4] | Includes intersegment sales of $447 million, $532 million and $448 million for the years ended December 31, 2015, 2014 and 2013, respectively. | ||||||
[5] | See Note 4 - Acquisitions, Dispositions and Plant Closures for further information. |
Segment Information (Schedul181
Segment Information (Schedule of Geographical Segments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 5,674 | $ 6,802 | $ 6,510 |
Property, plant and equipment, net | 3,609 | 3,733 | |
BELGIUM | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 417 | 480 | 525 |
Property, plant and equipment, net | 56 | 66 | |
CANADA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 162 | 204 | 249 |
Property, plant and equipment, net | 137 | 138 | |
CHINA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 800 | 996 | 863 |
Property, plant and equipment, net | 417 | 593 | |
GERMANY | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,779 | 2,156 | 2,049 |
Property, plant and equipment, net | 931 | 1,084 | |
MEXICO | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 204 | 259 | 256 |
Property, plant and equipment, net | 156 | 151 | |
SINGAPORE | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 703 | 632 | 578 |
Property, plant and equipment, net | 68 | 50 | |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,463 | 1,899 | 1,808 |
Property, plant and equipment, net | 1,774 | 1,563 | |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 146 | 176 | $ 182 |
Property, plant and equipment, net | $ 70 | $ 88 |
Earnings (Loss) Per Share (Sche
Earnings (Loss) Per Share (Schedule of Earnings (Loss) Per Share) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Amounts attributable to Celanese Corporation | ||||
Earnings (loss) from continuing operations | $ 306 | $ 631 | $ 1,101 | |
Earnings (loss) from discontinued operations | (2) | (7) | 0 | |
Net earnings (loss) | $ 304 | $ 624 | $ 1,101 | |
Weighted average shares - basic | 150,838,050 | 155,012,370 | 158,801,150 | |
Incremental shares attributable to equity awards | [1] | 1,449,905 | 1,154,623 | 533,069 |
Weighted average shares - diluted | 152,287,955 | 156,166,993 | 159,334,219 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,903 | 0 | 40,306 | |
[1] | Excludes 2,903, 0 and 40,306 equity award shares for the years ended December 31, 2015, 2014 and 2013, respectively, as their effect would have been antidilutive. |
Consolidating Guarantor Fina183
Consolidating Guarantor Financial Information (Schedule of Consolidating Statements of Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net sales | $ 5,674 | $ 6,802 | $ 6,510 |
Cost of sales | (4,356) | (5,186) | (5,145) |
Gross profit | 1,318 | 1,616 | 1,365 |
Selling, general and administrative expenses | (506) | (758) | (311) |
Amortization of intangible assets | (11) | (20) | (32) |
Research and development expenses | (119) | (86) | (85) |
Other (charges) gains, net | (351) | 15 | (158) |
Foreign exchange gain (loss), net | 4 | (2) | (6) |
Gain (loss) on disposition of businesses and assets, net | (9) | (7) | 735 |
Operating profit (loss) | 326 | 758 | 1,508 |
Equity in net earnings (loss) of affiliates | 181 | 246 | 180 |
Interest expense | (119) | (147) | (172) |
Refinancing expense | 0 | (29) | (1) |
Interest income | 1 | 1 | 1 |
Dividend income - cost investments | 107 | 116 | 93 |
Other income (expense), net | (8) | (4) | 0 |
Earnings (loss) from continuing operations before tax | 488 | 941 | 1,609 |
Income tax (provision) benefit | (201) | (314) | (508) |
Earnings (loss) from continuing operations | 287 | 627 | 1,101 |
Earnings (loss) from operation of discontinued operations | (3) | (11) | 0 |
Gain (loss) on disposition of discontinued operations | 0 | 0 | 0 |
Income tax (provision) benefit from discontinued operations | 1 | 4 | 0 |
Earnings (loss) from discontinued operations | (2) | (7) | 0 |
Net earnings (loss) | 285 | 620 | 1,101 |
Net (earnings) loss attributable to noncontrolling interests | 19 | 4 | 0 |
Net earnings (loss) attributable to Celanese Corporation | 304 | 624 | 1,101 |
Parent Guarantor [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net sales | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 |
Amortization of intangible assets | 0 | 0 | 0 |
Research and development expenses | 0 | 0 | 0 |
Other (charges) gains, net | 0 | 0 | 0 |
Foreign exchange gain (loss), net | 0 | 0 | 0 |
Gain (loss) on disposition of businesses and assets, net | 0 | 0 | 0 |
Operating profit (loss) | 0 | 0 | 0 |
Equity in net earnings (loss) of affiliates | 302 | 622 | 1,096 |
Interest expense | 0 | 0 | 0 |
Refinancing expense | 0 | 0 | 0 |
Interest income | 0 | 0 | 0 |
Dividend income - cost investments | 0 | 0 | 0 |
Other income (expense), net | 0 | 0 | 0 |
Earnings (loss) from continuing operations before tax | 302 | 622 | 1,096 |
Income tax (provision) benefit | 2 | 2 | 5 |
Earnings (loss) from continuing operations | 304 | 624 | 1,101 |
Earnings (loss) from operation of discontinued operations | 0 | 0 | 0 |
Gain (loss) on disposition of discontinued operations | 0 | 0 | 0 |
Income tax (provision) benefit from discontinued operations | 0 | 0 | 0 |
Earnings (loss) from discontinued operations | 0 | 0 | 0 |
Net earnings (loss) | 304 | 624 | 1,101 |
Net (earnings) loss attributable to noncontrolling interests | 0 | 0 | 0 |
Net earnings (loss) attributable to Celanese Corporation | 304 | 624 | 1,101 |
Issuer [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net sales | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 |
Amortization of intangible assets | 0 | 0 | 0 |
Research and development expenses | 0 | 0 | 0 |
Other (charges) gains, net | 0 | 0 | 0 |
Foreign exchange gain (loss), net | 0 | 0 | 0 |
Gain (loss) on disposition of businesses and assets, net | 0 | 0 | 0 |
Operating profit (loss) | 0 | 0 | 0 |
Equity in net earnings (loss) of affiliates | 314 | 806 | 1,180 |
Interest expense | (77) | (190) | (192) |
Refinancing expense | 0 | (29) | (1) |
Interest income | 18 | 57 | 55 |
Dividend income - cost investments | 0 | 0 | 0 |
Other income (expense), net | (2) | 0 | 0 |
Earnings (loss) from continuing operations before tax | 253 | 644 | 1,042 |
Income tax (provision) benefit | 49 | (22) | 54 |
Earnings (loss) from continuing operations | 302 | 622 | 1,096 |
Earnings (loss) from operation of discontinued operations | 0 | 0 | 0 |
Gain (loss) on disposition of discontinued operations | 0 | 0 | 0 |
Income tax (provision) benefit from discontinued operations | 0 | 0 | 0 |
Earnings (loss) from discontinued operations | 0 | 0 | 0 |
Net earnings (loss) | 302 | 622 | 1,096 |
Net (earnings) loss attributable to noncontrolling interests | 0 | 0 | 0 |
Net earnings (loss) attributable to Celanese Corporation | 302 | 622 | 1,096 |
Subsidiary Guarantors [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net sales | 2,410 | 2,860 | 2,799 |
Cost of sales | (1,729) | (1,822) | (1,827) |
Gross profit | 681 | 1,038 | 972 |
Selling, general and administrative expenses | (242) | (313) | 53 |
Amortization of intangible assets | (5) | (7) | (11) |
Research and development expenses | (78) | (47) | (53) |
Other (charges) gains, net | (5) | 28 | 2 |
Foreign exchange gain (loss), net | 0 | 0 | 0 |
Gain (loss) on disposition of businesses and assets, net | (6) | (11) | (2) |
Operating profit (loss) | 345 | 688 | 961 |
Equity in net earnings (loss) of affiliates | 84 | 90 | 116 |
Interest expense | (76) | (22) | (34) |
Refinancing expense | 0 | 0 | 0 |
Interest income | 40 | 72 | 65 |
Dividend income - cost investments | 0 | 0 | 0 |
Other income (expense), net | 2 | 4 | (52) |
Earnings (loss) from continuing operations before tax | 395 | 832 | 1,056 |
Income tax (provision) benefit | (133) | (237) | (326) |
Earnings (loss) from continuing operations | 262 | 595 | 730 |
Earnings (loss) from operation of discontinued operations | (3) | (8) | 2 |
Gain (loss) on disposition of discontinued operations | 0 | 0 | 0 |
Income tax (provision) benefit from discontinued operations | 1 | 3 | (1) |
Earnings (loss) from discontinued operations | (2) | (5) | 1 |
Net earnings (loss) | 260 | 590 | 731 |
Net (earnings) loss attributable to noncontrolling interests | 0 | 0 | 0 |
Net earnings (loss) attributable to Celanese Corporation | 260 | 590 | 731 |
Non-Guarantors [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net sales | 4,485 | 5,166 | 4,911 |
Cost of sales | (3,897) | (4,550) | (4,531) |
Gross profit | 588 | 616 | 380 |
Selling, general and administrative expenses | (264) | (445) | (364) |
Amortization of intangible assets | (6) | (13) | (21) |
Research and development expenses | (41) | (39) | (32) |
Other (charges) gains, net | (346) | (13) | (156) |
Foreign exchange gain (loss), net | 4 | (2) | (6) |
Gain (loss) on disposition of businesses and assets, net | (3) | 4 | 737 |
Operating profit (loss) | (68) | 108 | 538 |
Equity in net earnings (loss) of affiliates | 162 | 210 | 158 |
Interest expense | (36) | (78) | (70) |
Refinancing expense | 0 | 0 | 0 |
Interest income | 13 | 15 | 5 |
Dividend income - cost investments | 107 | 116 | 93 |
Other income (expense), net | (8) | (8) | 52 |
Earnings (loss) from continuing operations before tax | 170 | 363 | 776 |
Income tax (provision) benefit | (98) | (71) | (229) |
Earnings (loss) from continuing operations | 72 | 292 | 547 |
Earnings (loss) from operation of discontinued operations | 0 | (3) | (2) |
Gain (loss) on disposition of discontinued operations | 0 | 0 | 0 |
Income tax (provision) benefit from discontinued operations | 0 | 1 | 1 |
Earnings (loss) from discontinued operations | 0 | (2) | (1) |
Net earnings (loss) | 72 | 290 | 546 |
Net (earnings) loss attributable to noncontrolling interests | 19 | 4 | 0 |
Net earnings (loss) attributable to Celanese Corporation | 91 | 294 | 546 |
Consolidation Eliminations [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net sales | (1,221) | (1,224) | (1,200) |
Cost of sales | 1,270 | 1,186 | 1,213 |
Gross profit | 49 | (38) | 13 |
Selling, general and administrative expenses | 0 | 0 | 0 |
Amortization of intangible assets | 0 | 0 | 0 |
Research and development expenses | 0 | 0 | 0 |
Other (charges) gains, net | 0 | 0 | (4) |
Foreign exchange gain (loss), net | 0 | 0 | 0 |
Gain (loss) on disposition of businesses and assets, net | 0 | 0 | 0 |
Operating profit (loss) | 49 | (38) | 9 |
Equity in net earnings (loss) of affiliates | (681) | (1,482) | (2,370) |
Interest expense | 70 | 143 | 124 |
Refinancing expense | 0 | 0 | 0 |
Interest income | (70) | (143) | (124) |
Dividend income - cost investments | 0 | 0 | 0 |
Other income (expense), net | 0 | 0 | 0 |
Earnings (loss) from continuing operations before tax | (632) | (1,520) | (2,361) |
Income tax (provision) benefit | (21) | 14 | (12) |
Earnings (loss) from continuing operations | (653) | (1,506) | (2,373) |
Earnings (loss) from operation of discontinued operations | 0 | 0 | 0 |
Gain (loss) on disposition of discontinued operations | 0 | 0 | 0 |
Income tax (provision) benefit from discontinued operations | 0 | 0 | 0 |
Earnings (loss) from discontinued operations | 0 | 0 | 0 |
Net earnings (loss) | (653) | (1,506) | (2,373) |
Net (earnings) loss attributable to noncontrolling interests | 0 | 0 | 0 |
Net earnings (loss) attributable to Celanese Corporation | $ (653) | $ (1,506) | $ (2,373) |
Consolidating Guarantor Fina184
Consolidating Guarantor Financial Information (Schedule of Consolidating Statements of Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net earnings (loss) | $ 285 | $ 620 | $ 1,101 |
Other comprehensive income (loss), net of tax | |||
Unrealized gain (loss) on marketable securities | 0 | 1 | 1 |
Foreign currency translation | (188) | (148) | 20 |
Gain (loss) on cash flow hedges | 2 | 40 | 6 |
Pension and postretirement benefits | 3 | (54) | 58 |
Total other comprehensive income (loss), net of tax | (183) | (161) | 85 |
Total comprehensive income (loss), net of tax | 102 | 459 | 1,186 |
Comprehensive (income) loss attributable to noncontrolling interests | 19 | 4 | 0 |
Comprehensive income (loss) attributable to Celanese Corporation | 121 | 463 | 1,186 |
Parent Guarantor [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net earnings (loss) | 304 | 624 | 1,101 |
Other comprehensive income (loss), net of tax | |||
Unrealized gain (loss) on marketable securities | 0 | 1 | 1 |
Foreign currency translation | (188) | (148) | 20 |
Gain (loss) on cash flow hedges | 2 | 40 | 6 |
Pension and postretirement benefits | 3 | (54) | 58 |
Total other comprehensive income (loss), net of tax | (183) | (161) | 85 |
Total comprehensive income (loss), net of tax | 121 | 463 | 1,186 |
Comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Celanese Corporation | 121 | 463 | 1,186 |
Issuer [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net earnings (loss) | 302 | 622 | 1,096 |
Other comprehensive income (loss), net of tax | |||
Unrealized gain (loss) on marketable securities | 0 | 1 | 1 |
Foreign currency translation | (188) | (148) | 20 |
Gain (loss) on cash flow hedges | 2 | 40 | 6 |
Pension and postretirement benefits | 3 | (54) | 58 |
Total other comprehensive income (loss), net of tax | (183) | (161) | 85 |
Total comprehensive income (loss), net of tax | 119 | 461 | 1,181 |
Comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Celanese Corporation | 119 | 461 | 1,181 |
Subsidiary Guarantors [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net earnings (loss) | 260 | 590 | 731 |
Other comprehensive income (loss), net of tax | |||
Unrealized gain (loss) on marketable securities | 0 | 1 | 1 |
Foreign currency translation | (181) | (31) | (10) |
Gain (loss) on cash flow hedges | 5 | (1) | 0 |
Pension and postretirement benefits | 3 | (54) | 56 |
Total other comprehensive income (loss), net of tax | (173) | (85) | 47 |
Total comprehensive income (loss), net of tax | 87 | 505 | 778 |
Comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Celanese Corporation | 87 | 505 | 778 |
Non-Guarantors [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net earnings (loss) | 72 | 290 | 546 |
Other comprehensive income (loss), net of tax | |||
Unrealized gain (loss) on marketable securities | 0 | 1 | 0 |
Foreign currency translation | (231) | (65) | (8) |
Gain (loss) on cash flow hedges | 1 | (7) | 0 |
Pension and postretirement benefits | 2 | (5) | 2 |
Total other comprehensive income (loss), net of tax | (228) | (76) | (6) |
Total comprehensive income (loss), net of tax | (156) | 214 | 540 |
Comprehensive (income) loss attributable to noncontrolling interests | 19 | 4 | 0 |
Comprehensive income (loss) attributable to Celanese Corporation | (137) | 218 | 540 |
Consolidation Eliminations [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net earnings (loss) | (653) | (1,506) | (2,373) |
Other comprehensive income (loss), net of tax | |||
Unrealized gain (loss) on marketable securities | 0 | (3) | (2) |
Foreign currency translation | 600 | 244 | (2) |
Gain (loss) on cash flow hedges | (8) | (32) | (6) |
Pension and postretirement benefits | (8) | 113 | (116) |
Total other comprehensive income (loss), net of tax | 584 | 322 | (126) |
Total comprehensive income (loss), net of tax | (69) | (1,184) | (2,499) |
Comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Celanese Corporation | $ (69) | $ (1,184) | $ (2,499) |
Consolidating Guarantor Fina185
Consolidating Guarantor Financial Information (Schedule of Consolidating Balance Sheets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Current Assets | |||||
Cash and cash equivalents | $ 967 | $ 780 | $ 984 | $ 959 | |
Trade receivables - third party and affiliates | 706 | 801 | |||
Non-trade receivables, net | 285 | 241 | |||
Inventories, net | 682 | 782 | |||
Deferred income taxes | 68 | 29 | |||
Marketable securities, at fair value | 30 | 32 | |||
Other assets | 49 | 33 | |||
Total current assets | 2,787 | 2,698 | |||
Investments in affiliates | 838 | 876 | |||
Property, plant and equipment, net | 3,609 | 3,733 | |||
Deferred income taxes | 222 | 253 | |||
Other assets | 300 | 355 | |||
Goodwill | 705 | [1] | 749 | 798 | |
Intangible assets, net | 125 | 132 | |||
Total assets | 8,586 | 8,796 | |||
Current Liabilities | |||||
Short-term borrowings and current installments of long-term debt - third party and affiliates | 513 | 137 | |||
Trade payables - third party and affiliates | 587 | 757 | |||
Other liabilities | 330 | 432 | |||
Deferred income taxes | 30 | 7 | |||
Income taxes payable | 90 | 5 | |||
Total current liabilities | 1,550 | 1,338 | |||
Noncurrent Liabilities | |||||
Long-term debt, net of unamortized deferred financing costs | 2,468 | 2,586 | |||
Deferred income taxes | 136 | 141 | |||
Uncertain tax positions | 167 | 159 | |||
Benefit obligations | 1,189 | 1,211 | |||
Other liabilities | 247 | 283 | |||
Total noncurrent liabilities | 4,207 | 4,380 | |||
Total Celanese Corporation stockholders' equity | 2,378 | 2,818 | 2,699 | ||
Noncontrolling interests | 451 | 260 | |||
Total equity | 2,829 | 3,078 | 2,699 | ||
Total liabilities and equity | 8,586 | 8,796 | |||
Parent Guarantor [Member] | |||||
Current Assets | |||||
Cash and cash equivalents | 0 | 0 | 0 | 10 | |
Trade receivables - third party and affiliates | 0 | 0 | |||
Non-trade receivables, net | 37 | 35 | |||
Inventories, net | 0 | 0 | |||
Deferred income taxes | 0 | 0 | |||
Marketable securities, at fair value | 0 | 0 | |||
Other assets | 0 | 0 | |||
Total current assets | 37 | 35 | |||
Investments in affiliates | 2,341 | 2,784 | |||
Property, plant and equipment, net | 0 | 0 | |||
Deferred income taxes | 0 | 0 | |||
Other assets | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Intangible assets, net | 0 | 0 | |||
Total assets | 2,378 | 2,819 | |||
Current Liabilities | |||||
Short-term borrowings and current installments of long-term debt - third party and affiliates | 0 | 0 | |||
Trade payables - third party and affiliates | 0 | 0 | |||
Other liabilities | 0 | 1 | |||
Deferred income taxes | 0 | 0 | |||
Income taxes payable | 0 | 0 | |||
Total current liabilities | 0 | 1 | |||
Noncurrent Liabilities | |||||
Long-term debt, net of unamortized deferred financing costs | 0 | 0 | |||
Deferred income taxes | 0 | 0 | |||
Uncertain tax positions | 0 | 0 | |||
Benefit obligations | 0 | 0 | |||
Other liabilities | 0 | 0 | |||
Total noncurrent liabilities | 0 | 0 | |||
Total Celanese Corporation stockholders' equity | 2,378 | 2,818 | |||
Noncontrolling interests | 0 | 0 | |||
Total equity | 2,378 | 2,818 | |||
Total liabilities and equity | 2,378 | 2,819 | |||
Issuer [Member] | |||||
Current Assets | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Trade receivables - third party and affiliates | 0 | 0 | |||
Non-trade receivables, net | 580 | 477 | |||
Inventories, net | 0 | 0 | |||
Deferred income taxes | 0 | 0 | |||
Marketable securities, at fair value | 0 | 0 | |||
Other assets | 12 | 6 | |||
Total current assets | 592 | 483 | |||
Investments in affiliates | 3,947 | 5,889 | |||
Property, plant and equipment, net | 0 | 0 | |||
Deferred income taxes | 2 | 16 | |||
Other assets | 418 | 653 | |||
Goodwill | 0 | 0 | |||
Intangible assets, net | 0 | 0 | |||
Total assets | 4,959 | 7,041 | |||
Current Liabilities | |||||
Short-term borrowings and current installments of long-term debt - third party and affiliates | 479 | 1,894 | |||
Trade payables - third party and affiliates | 0 | 0 | |||
Other liabilities | 28 | 34 | |||
Deferred income taxes | 26 | 22 | |||
Income taxes payable | 0 | 0 | |||
Total current liabilities | 533 | 1,950 | |||
Noncurrent Liabilities | |||||
Long-term debt, net of unamortized deferred financing costs | 2,078 | 2,248 | |||
Deferred income taxes | 0 | 0 | |||
Uncertain tax positions | 7 | 6 | |||
Benefit obligations | 0 | 0 | |||
Other liabilities | 0 | 53 | |||
Total noncurrent liabilities | 2,085 | 2,307 | |||
Total Celanese Corporation stockholders' equity | 2,341 | 2,784 | |||
Noncontrolling interests | 0 | 0 | |||
Total equity | 2,341 | 2,784 | |||
Total liabilities and equity | 4,959 | 7,041 | |||
Subsidiary Guarantors [Member] | |||||
Current Assets | |||||
Cash and cash equivalents | 21 | 110 | 284 | 275 | |
Trade receivables - third party and affiliates | 132 | 184 | |||
Non-trade receivables, net | 298 | 2,265 | |||
Inventories, net | 258 | 268 | |||
Deferred income taxes | 19 | 39 | |||
Marketable securities, at fair value | 30 | 32 | |||
Other assets | 28 | 12 | |||
Total current assets | 786 | 2,910 | |||
Investments in affiliates | 3,909 | 4,349 | |||
Property, plant and equipment, net | 1,001 | 1,029 | |||
Deferred income taxes | 178 | 211 | |||
Other assets | 151 | 145 | |||
Goodwill | 314 | 314 | |||
Intangible assets, net | 51 | 73 | |||
Total assets | 6,390 | 9,031 | |||
Current Liabilities | |||||
Short-term borrowings and current installments of long-term debt - third party and affiliates | 181 | 184 | |||
Trade payables - third party and affiliates | 240 | 413 | |||
Other liabilities | 281 | 225 | |||
Deferred income taxes | 0 | 0 | |||
Income taxes payable | 537 | 484 | |||
Total current liabilities | 1,239 | 1,306 | |||
Noncurrent Liabilities | |||||
Long-term debt, net of unamortized deferred financing costs | 706 | 899 | |||
Deferred income taxes | 0 | 0 | |||
Uncertain tax positions | 29 | 16 | |||
Benefit obligations | 960 | 923 | |||
Other liabilities | 93 | 121 | |||
Total noncurrent liabilities | 1,788 | 1,959 | |||
Total Celanese Corporation stockholders' equity | 3,363 | 5,766 | |||
Noncontrolling interests | 0 | 0 | |||
Total equity | 3,363 | 5,766 | |||
Total liabilities and equity | 6,390 | 9,031 | |||
Non-Guarantors [Member] | |||||
Current Assets | |||||
Cash and cash equivalents | 946 | 670 | 700 | 674 | |
Trade receivables - third party and affiliates | 722 | 821 | |||
Non-trade receivables, net | 522 | 407 | |||
Inventories, net | 474 | 613 | |||
Deferred income taxes | 68 | 12 | |||
Marketable securities, at fair value | 0 | 0 | |||
Other assets | 40 | 34 | |||
Total current assets | 2,772 | 2,557 | |||
Investments in affiliates | 738 | 613 | |||
Property, plant and equipment, net | 2,608 | 2,704 | |||
Deferred income taxes | 42 | 26 | |||
Other assets | 227 | 400 | |||
Goodwill | 391 | 435 | |||
Intangible assets, net | 74 | 59 | |||
Total assets | 6,852 | 6,794 | |||
Current Liabilities | |||||
Short-term borrowings and current installments of long-term debt - third party and affiliates | 213 | 290 | |||
Trade payables - third party and affiliates | 495 | 548 | |||
Other liabilities | 283 | 402 | |||
Deferred income taxes | 23 | 7 | |||
Income taxes payable | 116 | 45 | |||
Total current liabilities | 1,130 | 1,292 | |||
Noncurrent Liabilities | |||||
Long-term debt, net of unamortized deferred financing costs | 187 | 208 | |||
Deferred income taxes | 136 | 141 | |||
Uncertain tax positions | 131 | 137 | |||
Benefit obligations | 229 | 288 | |||
Other liabilities | 155 | 192 | |||
Total noncurrent liabilities | 838 | 966 | |||
Total Celanese Corporation stockholders' equity | 4,433 | 4,276 | |||
Noncontrolling interests | 451 | 260 | |||
Total equity | 4,884 | 4,536 | |||
Total liabilities and equity | 6,852 | 6,794 | |||
Consolidation Eliminations [Member] | |||||
Current Assets | |||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | |
Trade receivables - third party and affiliates | (148) | (204) | |||
Non-trade receivables, net | (1,152) | (2,943) | |||
Inventories, net | (50) | (99) | |||
Deferred income taxes | (19) | (22) | |||
Marketable securities, at fair value | 0 | 0 | |||
Other assets | (31) | (19) | |||
Total current assets | (1,400) | (3,287) | |||
Investments in affiliates | (10,097) | (12,759) | |||
Property, plant and equipment, net | 0 | 0 | |||
Deferred income taxes | 0 | 0 | |||
Other assets | (496) | (843) | |||
Goodwill | 0 | 0 | |||
Intangible assets, net | 0 | 0 | |||
Total assets | (11,993) | (16,889) | |||
Current Liabilities | |||||
Short-term borrowings and current installments of long-term debt - third party and affiliates | (360) | (2,231) | |||
Trade payables - third party and affiliates | (148) | (204) | |||
Other liabilities | (262) | (230) | |||
Deferred income taxes | (19) | (22) | |||
Income taxes payable | (563) | (524) | |||
Total current liabilities | (1,352) | (3,211) | |||
Noncurrent Liabilities | |||||
Long-term debt, net of unamortized deferred financing costs | (503) | (769) | |||
Deferred income taxes | 0 | 0 | |||
Uncertain tax positions | 0 | 0 | |||
Benefit obligations | 0 | 0 | |||
Other liabilities | (1) | (83) | |||
Total noncurrent liabilities | (504) | (852) | |||
Total Celanese Corporation stockholders' equity | (10,137) | (12,826) | |||
Noncontrolling interests | 0 | 0 | |||
Total equity | (10,137) | (12,826) | |||
Total liabilities and equity | $ (11,993) | $ (16,889) | |||
[1] | There were $0 million of accumulated impairment losses as of December 31, 2015. |
Consolidating Guarantor Fina186
Consolidating Guarantor Financial Information (Schedule of Consolidating Cash Flow Statements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | $ 862 | $ 962 | $ 762 |
Investing Activities | |||
Capital expenditures on property, plant and equipment | (232) | (254) | (277) |
Acquisitions, net of cash acquired | (6) | (10) | 0 |
Proceeds from sale of businesses and assets, net | 4 | 0 | 13 |
Capital expenditures related to Kelsterbach plant relocation | 0 | 0 | (7) |
Capital expenditures related to Fairway Methanol LLC | (288) | (424) | (93) |
Return of capital from subsidiary | 0 | 0 | 0 |
Contributions to subsidiary | 0 | 0 | 0 |
Intercompany loan receipts (disbursements) | 0 | 0 | 0 |
Other, net | (36) | (17) | (58) |
Net cash provided by (used in) investing activities | (558) | (705) | (422) |
Financing Activities | |||
Short-term borrowings (repayments), net | 350 | (9) | (11) |
Proceeds from short-term borrowings | 80 | 62 | 177 |
Repayments of short-term borrowings | (83) | (91) | (123) |
Proceeds from long-term debt | 0 | 387 | 74 |
Repayments of long-term debt | (24) | (626) | (198) |
Purchases of treasury stock, including related fees | (420) | (250) | (164) |
Dividends to parent | 0 | 0 | 0 |
Contributions from parent | 0 | 0 | 0 |
Stock option exercises | 3 | 5 | 9 |
Series A common stock dividends | (174) | (144) | (83) |
Return of capital to parent | 0 | 0 | 0 |
Contributions from noncontrolling interests | 214 | 264 | 0 |
Other, net | (12) | (13) | (7) |
Net cash provided by (used in) financing activities | (66) | (415) | (326) |
Exchange rate effects on cash and cash equivalents | (51) | (46) | 11 |
Net increase (decrease) in cash and cash equivalents | 187 | (204) | 25 |
Cash and cash equivalents as of beginning of period | 780 | 984 | 959 |
Cash and cash equivalents as of end of period | 967 | 780 | 984 |
Parent Guarantor [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 591 | 389 | 228 |
Investing Activities | |||
Capital expenditures on property, plant and equipment | 0 | 0 | 0 |
Acquisitions, net of cash acquired | 0 | 0 | 0 |
Proceeds from sale of businesses and assets, net | 0 | 0 | 0 |
Capital expenditures related to Kelsterbach plant relocation | 0 | 0 | 0 |
Capital expenditures related to Fairway Methanol LLC | 0 | 0 | 0 |
Return of capital from subsidiary | 0 | 0 | 0 |
Contributions to subsidiary | 0 | 0 | 0 |
Intercompany loan receipts (disbursements) | 0 | 0 | 0 |
Other, net | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 | 0 |
Financing Activities | |||
Short-term borrowings (repayments), net | 0 | 0 | 0 |
Proceeds from short-term borrowings | 0 | 0 | 0 |
Repayments of short-term borrowings | 0 | 0 | 0 |
Proceeds from long-term debt | 0 | 0 | 0 |
Repayments of long-term debt | 0 | 0 | 0 |
Purchases of treasury stock, including related fees | (420) | (250) | (164) |
Dividends to parent | 0 | 0 | 0 |
Contributions from parent | 0 | 0 | 0 |
Stock option exercises | 3 | 5 | 9 |
Series A common stock dividends | (174) | (144) | (83) |
Return of capital to parent | 0 | 0 | 0 |
Contributions from noncontrolling interests | 0 | 0 | 0 |
Other, net | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | (591) | (389) | (238) |
Exchange rate effects on cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | (10) |
Cash and cash equivalents as of beginning of period | 0 | 0 | 10 |
Cash and cash equivalents as of end of period | 0 | 0 | 0 |
Issuer [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 536 | 498 | 105 |
Investing Activities | |||
Capital expenditures on property, plant and equipment | 0 | 0 | 0 |
Acquisitions, net of cash acquired | 0 | 0 | 0 |
Proceeds from sale of businesses and assets, net | 0 | 0 | 0 |
Capital expenditures related to Kelsterbach plant relocation | 0 | 0 | 0 |
Capital expenditures related to Fairway Methanol LLC | 0 | 0 | 0 |
Return of capital from subsidiary | 0 | 28 | 0 |
Contributions to subsidiary | 0 | 0 | 0 |
Intercompany loan receipts (disbursements) | (333) | (70) | 5 |
Other, net | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | (333) | (42) | 5 |
Financing Activities | |||
Short-term borrowings (repayments), net | 383 | 93 | 131 |
Proceeds from short-term borrowings | 0 | 0 | 0 |
Repayments of short-term borrowings | 0 | 0 | 0 |
Proceeds from long-term debt | 15 | 462 | 24 |
Repayments of long-term debt | (9) | (611) | (34) |
Purchases of treasury stock, including related fees | 0 | 0 | 0 |
Dividends to parent | (592) | (390) | (229) |
Contributions from parent | 0 | 0 | 0 |
Stock option exercises | 0 | 0 | 0 |
Series A common stock dividends | 0 | 0 | 0 |
Return of capital to parent | 0 | 0 | 0 |
Contributions from noncontrolling interests | 0 | 0 | 0 |
Other, net | 0 | (10) | (2) |
Net cash provided by (used in) financing activities | (203) | (456) | (110) |
Exchange rate effects on cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents as of beginning of period | 0 | 0 | 0 |
Cash and cash equivalents as of end of period | 0 | 0 | 0 |
Subsidiary Guarantors [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 529 | 644 | 766 |
Investing Activities | |||
Capital expenditures on property, plant and equipment | (128) | (183) | (156) |
Acquisitions, net of cash acquired | (3) | (10) | 0 |
Proceeds from sale of businesses and assets, net | 0 | 0 | 0 |
Capital expenditures related to Kelsterbach plant relocation | 0 | 0 | 0 |
Capital expenditures related to Fairway Methanol LLC | (20) | (44) | (93) |
Return of capital from subsidiary | 0 | 51 | 0 |
Contributions to subsidiary | (120) | (213) | (20) |
Intercompany loan receipts (disbursements) | (33) | (93) | (131) |
Other, net | (12) | (9) | (45) |
Net cash provided by (used in) investing activities | (316) | (501) | (445) |
Financing Activities | |||
Short-term borrowings (repayments), net | 0 | 6 | (8) |
Proceeds from short-term borrowings | 0 | 0 | 0 |
Repayments of short-term borrowings | 0 | 0 | 0 |
Proceeds from long-term debt | 406 | 75 | 50 |
Repayments of long-term debt | (74) | (5) | (121) |
Purchases of treasury stock, including related fees | 0 | 0 | 0 |
Dividends to parent | (624) | (390) | (229) |
Contributions from parent | 0 | 0 | 0 |
Stock option exercises | 0 | 0 | 0 |
Series A common stock dividends | 0 | 0 | 0 |
Return of capital to parent | 0 | 0 | 0 |
Contributions from noncontrolling interests | 0 | 0 | 0 |
Other, net | (10) | (3) | (4) |
Net cash provided by (used in) financing activities | (302) | (317) | (312) |
Exchange rate effects on cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | (89) | (174) | 9 |
Cash and cash equivalents as of beginning of period | 110 | 284 | 275 |
Cash and cash equivalents as of end of period | 21 | 110 | 284 |
Non-Guarantors [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 422 | 433 | 154 |
Investing Activities | |||
Capital expenditures on property, plant and equipment | (104) | (71) | (121) |
Acquisitions, net of cash acquired | (3) | 0 | 0 |
Proceeds from sale of businesses and assets, net | 4 | 0 | 13 |
Capital expenditures related to Kelsterbach plant relocation | 0 | 0 | (7) |
Capital expenditures related to Fairway Methanol LLC | (268) | (380) | 0 |
Return of capital from subsidiary | 0 | 0 | 0 |
Contributions to subsidiary | 0 | 0 | 0 |
Intercompany loan receipts (disbursements) | (15) | (75) | 0 |
Other, net | (24) | (8) | (13) |
Net cash provided by (used in) investing activities | (410) | (534) | (128) |
Financing Activities | |||
Short-term borrowings (repayments), net | 0 | (15) | (3) |
Proceeds from short-term borrowings | 80 | 62 | 177 |
Repayments of short-term borrowings | (83) | (91) | (123) |
Proceeds from long-term debt | 0 | 0 | 0 |
Repayments of long-term debt | (14) | (15) | (48) |
Purchases of treasury stock, including related fees | 0 | 0 | 0 |
Dividends to parent | 0 | (222) | (33) |
Contributions from parent | 120 | 213 | 20 |
Stock option exercises | 0 | 0 | 0 |
Series A common stock dividends | 0 | 0 | 0 |
Return of capital to parent | 0 | (79) | 0 |
Contributions from noncontrolling interests | 214 | 264 | 0 |
Other, net | (2) | 0 | (1) |
Net cash provided by (used in) financing activities | 315 | 117 | (11) |
Exchange rate effects on cash and cash equivalents | (51) | (46) | 11 |
Net increase (decrease) in cash and cash equivalents | 276 | (30) | 26 |
Cash and cash equivalents as of beginning of period | 670 | 700 | 674 |
Cash and cash equivalents as of end of period | 946 | 670 | 700 |
Consolidation Eliminations [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | (1,216) | (1,002) | (491) |
Investing Activities | |||
Capital expenditures on property, plant and equipment | 0 | 0 | 0 |
Acquisitions, net of cash acquired | 0 | 0 | 0 |
Proceeds from sale of businesses and assets, net | 0 | 0 | 0 |
Capital expenditures related to Kelsterbach plant relocation | 0 | 0 | 0 |
Capital expenditures related to Fairway Methanol LLC | 0 | 0 | 0 |
Return of capital from subsidiary | 0 | (79) | 0 |
Contributions to subsidiary | 120 | 213 | 20 |
Intercompany loan receipts (disbursements) | 381 | 238 | 126 |
Other, net | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | 501 | 372 | 146 |
Financing Activities | |||
Short-term borrowings (repayments), net | (33) | (93) | (131) |
Proceeds from short-term borrowings | 0 | 0 | 0 |
Repayments of short-term borrowings | 0 | 0 | 0 |
Proceeds from long-term debt | (421) | (150) | 0 |
Repayments of long-term debt | 73 | 5 | 5 |
Purchases of treasury stock, including related fees | 0 | 0 | 0 |
Dividends to parent | 1,216 | 1,002 | 491 |
Contributions from parent | (120) | (213) | (20) |
Stock option exercises | 0 | 0 | 0 |
Series A common stock dividends | 0 | 0 | 0 |
Return of capital to parent | 0 | 79 | 0 |
Contributions from noncontrolling interests | 0 | 0 | 0 |
Other, net | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | 715 | 630 | 345 |
Exchange rate effects on cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents as of beginning of period | 0 | 0 | 0 |
Cash and cash equivalents as of end of period | $ 0 | $ 0 | $ 0 |
Consolidating Guarantor Fina187
Consolidating Guarantor Financial Information (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Consolidating Guarantor Financial Information [Abstract] | |
Issuer and subsidiary guarantors, ownership percentage | 100.00% |
Interest Allocated To Subsidiary Guarantor | $ 54 |