Exhibit 99.5
Historical Non-US GAAP Financial Measures and Supplemental Information
June 18, 2017
In this document, the terms the "Company," "we" and "our" refer to Celanese Corporation and its subsidiaries on a consolidated basis.
Purpose
The purpose of this document is to provide information of interest to investors, analysts and other parties including supplemental financial information and reconciliations and other information concerning our use of non-US GAAP financial measures.
Presentation
This document presents the Company's business segments in two subtotals, reflecting our two cores, the Acetyl Chain and Materials Solutions, based on similarities among customers, business models and technical processes. As described in the Company's annual report on Form 10-K and quarterly reports on Form 10-Q, the Acetyl Chain includes the Company's Acetyl Intermediates segment and the Industrial Specialties segment. Materials Solutions includes the Company's Advanced Engineered Materials segment and the Consumer Specialties segment. For comparative purposes, the historical financial information included herein has been presented to reflect the Acetyl Chain and Materials Solutions subtotals. There has been no change to the composition of the Company's business segments.
Use of Non-US GAAP Financial Measures
From time to time, management may publicly disclose certain numerical "non-GAAP financial measures" in the course of our earnings releases, financial presentations, earnings conference calls, investor and analyst meetings and otherwise. For these purposes, the Securities and Exchange Commission ("SEC") defines a "non-GAAP financial measure" as a numerical measure of historical or future financial performance, financial position, or cash flows that excludes amounts, or is subject to adjustments that effectively exclude amounts, included in the most directly comparable measure calculated and presented in accordance with US GAAP, and vice versa for measures that include amounts, or are subject to adjustments that effectively include amounts, that are excluded from the most directly comparable US GAAP measure so calculated and presented. For these purposes, "GAAP" refers to generally accepted accounting principles in the United States.
Non-GAAP financial measures disclosed by management are provided as additional information to investors, analysts and other parties because the Company believes them to be important supplemental measures for assessing our financial and operating results and as a means to evaluate our financial condition and period-to-period comparisons. These non-GAAP financial measures should be viewed as supplemental to, and should not be considered in isolation or as alternatives to, net earnings (loss), operating profit (loss), operating margin, cash flow from operating activities (together with cash flow from investing and financing activities), earnings per share or any other US GAAP financial measure. These non-GAAP financial measures should be considered within the context of our complete audited and unaudited financial results for the given period, which are available on the Investor Relations/Financial Information/SEC Filings page of our website, www.celanese.com. The definition and method of calculation of the non-GAAP financial measures used herein may be different from other companies' methods for calculating measures with the same or similar titles. Investors, analysts and other parties should understand how another company calculates such non-GAAP financial measures before comparing the other company's non-GAAP financial measures to any of our own. These non-GAAP financial measures may not be indicative of the historical operating results of the Company nor are they intended to be predictive or projections of future results.
Pursuant to the requirements of SEC Regulation G, whenever we refer to a non-GAAP financial measure, we will also present in this document, in the presentation itself or on a Form 8-K in connection with the presentation on the Investor Relations/Financial Information/Non-GAAP Financial Measures page of our website, www.celanese.com, to the extent practicable, the most directly comparable financial measure calculated and presented in accordance with GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable GAAP financial measure.
This document includes definitions and reconciliations of non-GAAP financial measures used from time to time by the Company.
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Specific Measures Used
This document provides information about the following non-GAAP measures: adjusted EBIT, adjusted EBIT margin, operating EBITDA, operating EBITDA margin, operating profit (loss) attributable to Celanese Corporation, adjusted earnings per share, net debt, free cash flow and return on invested capital (adjusted). The most directly comparable financial measure presented in accordance with US GAAP in our consolidated financial statements for adjusted EBIT and operating EBITDA is net earnings (loss) attributable to Celanese Corporation; for adjusted EBIT margin and operating EBITDA margin is operating margin; for operating profit (loss) attributable to Celanese Corporation is operating profit (loss); for adjusted earnings per share is earnings (loss) from continuing operations attributable to Celanese Corporation per common share-diluted; for net debt is total debt; for free cash flow is net cash provided by (used in) operations; and for return on invested capital (adjusted) is net earnings (loss) attributable to Celanese Corporation divided by the sum of the average of beginning and end of the year short- and long-term debt and Celanese Corporation stockholders' equity.
Definitions
| • | Adjusted EBIT is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense and taxes, and further adjusted for Certain Items (refer to Table 8). We believe that adjusted EBIT provides transparent and useful information to management, investors, analysts and other parties in evaluating and assessing our primary operating results from period-to-period after removing the impact of unusual, non-operational or restructuring-related activities that affect comparability. Our management recognizes that adjusted EBIT has inherent limitations because of the excluded items. Adjusted EBIT is one of the measures management uses for planning and budgeting, monitoring and evaluating financial and operating results and as a performance metric in the Company's incentive compensation plan. We may provide guidance on adjusted EBIT but are unable to reconcile forecasted adjusted EBIT to a US GAAP financial measure without unreasonable efforts because a forecast of Certain Items, such as mark-to-market pension gains and losses, which may be significant, is not practical. Adjusted EBIT margin is defined by the Company as adjusted EBIT divided by net sales. Adjusted EBIT margin has the same uses and limitations as Adjusted EBIT. |
| • | Adjusted EBIT by core (i.e. Acetyl Chain and/or Materials Solutions) may also be referred to by management as core income. Adjusted EBIT margin by core may also be referred to by management as core income margin. Adjusted EBIT by business segment may also be referred to by management as segment income. Adjusted EBIT margin by business segment may also be referred to by management as segment income margin. |
| • | Operating EBITDA is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense, taxes and depreciation and amortization, and further adjusted for Certain Items, which Certain Items include accelerated depreciation and amortization expense. Operating EBITDA is equal to adjusted EBIT plus depreciation and amortization. We believe that Operating EBITDA provides transparent and useful information to investors, analysts and other parties in evaluating our operating performance relative to our peer companies. Operating EBITDA margin is defined by the Company as Operating EBITDA divided by net sales. Operating EBITDA margin has the same uses and limitations as Operating EBITDA. |
| • | Operating profit (loss) attributable to Celanese Corporation is defined by the Company as operating profit (loss), less earnings (loss) attributable to noncontrolling interests ("NCI"). We believe that operating profit (loss) attributable to Celanese Corporation provides transparent and useful information to management, investors, analysts and other parties in evaluating our core operational performance. Operating margin attributable to Celanese Corporation is defined by the Company as operating profit (loss) attributable to Celanese Corporation divided by net sales. Operating margin attributable to Celanese Corporation has the same uses and limitations as Operating profit (loss) attributable to Celanese Corporation. |
| • | Adjusted earnings per share is a performance measure used by the Company and is defined by the Company as earnings (loss) from continuing operations attributable to Celanese Corporation, adjusted for income tax (provision) benefit, Certain Items, and refinancing and related expenses, divided by the number of basic common shares and dilutive restricted stock units and stock options calculated using the treasury method. We believe that adjusted earnings per share provides transparent and useful information to management, investors, analysts and other parties in evaluating and assessing our primary operating results from period-to-period after removing the impact of the above stated items that affect comparability. We may provide guidance on adjusted earnings per share but are unable to reconcile forecasted adjusted earnings per share to a GAAP financial measure without unreasonable efforts because a forecast of Certain Items, such as mark-to-market pension gains and losses, which may be significant, is not practical. |
Note: The income tax expense (benefit) on Certain Items ("Non-GAAP adjustments") is determined using the applicable rates in the taxing jurisdictions in which the non-GAAP adjustments occurred and includes both current and deferred income tax expense (benefit). The income tax rate used for adjusted earnings per share approximates the midpoint in a range of forecasted tax rates for the year. This range may include certain partial or full-year forecasted tax opportunities and related costs, where applicable, and specifically excludes changes in uncertain tax positions, discrete recognition of GAAP items on a quarterly basis, other pre-tax items adjusted out of our GAAP earnings for adjusted earnings per share purposes and changes in management's assessments regarding the ability to realize deferred tax assets for GAAP. In determining the adjusted earnings per share tax rate, we reflect the impact of foreign tax credits when utilized, or expected to be utilized, absent discrete events impacting the timing of foreign tax credit utilization. We analyze this rate quarterly
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and adjust it if there is a material change in the range of forecasted tax rates; an updated forecast would not necessarily result in a change to our tax rate used for adjusted earnings per share. The adjusted tax rate is an estimate and may differ from the actual tax rate used for GAAP reporting in any given reporting period. Table 3a summarizes the reconciliation of our GAAP effective tax rate to the adjusted tax rate.
| • | Free cash flow is a liquidity measure used by the Company and is defined by the Company as net cash provided by (used in) operations, less capital expenditures on property, plant and equipment, and adjusted for capital contributions from or distributions to Mitsui & Co., Ltd. ("Mitsui") related to our methanol joint venture, Fairway Methanol LLC ("Fairway"). We believe that free cash flow provides useful information to management, investors, analysts and other parties in evaluating the Company's liquidity and credit quality assessment because it provides an indication of the long-term cash generating ability of our business. Although we use free cash flow as a measure to assess the liquidity generated by our business, the use of free cash flow has important limitations, including that free cash flow does not reflect the cash requirements necessary to service our indebtedness, lease obligations, unconditional purchase obligations or pension and postretirement funding obligations. |
| • | Net debt is defined by the Company as total debt less cash and cash equivalents. We believe that net debt provides useful information to management, investors, analysts and other parties in evaluating changes to the Company's capital structure and credit quality assessment. |
| • | Return on invested capital (adjusted) is defined by the Company as adjusted EBIT, tax effected using the adjusted tax rate, divided by the sum of the average of beginning and end of the year short- and long-term debt and Celanese Corporation stockholders' equity. We believe that return on invested capital (adjusted) provides useful information to management, investors, analysts and other parties in order to assess our income generation from the point of view of our stockholders and creditors who provide us with capital in the form of equity and debt and whether capital invested in the Company yields competitive returns. In addition, achievement of certain predetermined targets relating to return on invested capital (adjusted) is one of the factors we consider in determining the amount of performance-based compensation received by our management. |
Supplemental Information
Supplemental Information we believe to be of interest to investors, analysts and other parties includes the following:
| • | Net sales for Materials Solutions, the Acetyl Chain and each of our business segments and the percentage increase or decrease in net sales attributable to price, volume, currency and other factors for Materials Solutions, the Acetyl Chain and each of our business segments. |
| • | Cash dividends received from our equity and cost investments. |
| • | 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 NCI. Beginning in 2014, this includes Fairway for which the Company's ownership percentage is 50%. Amounts referred to as "attributable to Celanese Corporation" are net of any applicable NCI. |
Results Unaudited
The results in this document, together with the adjustments made to present the results on a comparable basis, have not been audited and are based on internal financial data furnished to management. Quarterly results should not be taken as an indication of the results of operations to be reported for any subsequent period or for the full fiscal year.
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Table 1
Adjusted EBIT and Operating EBITDA - Reconciliation of Non-GAAP Measures - Unaudited
| 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||
| (In $ millions) | |||||||||||||||||
| Net earnings (loss) attributable to Celanese Corporation | 304 | 624 | 1,101 | 372 | 427 | 312 | |||||||||||
| (Earnings) loss from discontinued operations | 2 | 7 | — | 4 | (1 | ) | 49 | ||||||||||
| Interest income | (1 | ) | (1 | ) | (1 | ) | (2 | ) | (3 | ) | (7 | ) | |||||
| Interest expense | 119 | 147 | 172 | 185 | 221 | 204 | |||||||||||
| Refinancing expense | — | 29 | 1 | 3 | 3 | 16 | |||||||||||
| Income tax provision (benefit) | 201 | 314 | 508 | (55 | ) | 41 | 72 | ||||||||||
Certain Items attributable to Celanese Corporation (Table 8) | 611 | 148 | (725 | ) | 455 | 405 | 197 | ||||||||||
| Adjusted EBIT | 1,236 | 1,268 | 1,056 | 962 | 1,093 | 843 | |||||||||||
Depreciation and amortization expense(1) | 279 | 290 | 302 | 300 | 287 | 258 | |||||||||||
| Operating EBITDA | 1,515 | 1,558 | 1,358 | 1,262 | 1,380 | 1,101 | |||||||||||
| 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||
| (In $ millions) | |||||||||||||||||
| Advanced Engineered Materials | — | — | — | — | 3 | 4 | |||||||||||
| Consumer Specialties | 10 | — | — | 6 | 8 | 5 | |||||||||||
| Industrial Specialties | 28 | 2 | 3 | 2 | — | — | |||||||||||
| Acetyl Intermediates | 40 | — | — | — | — | 20 | |||||||||||
Other Activities(2) | — | — | — | — | — | — | |||||||||||
| Accelerated depreciation and amortization expense | 78 | 2 | 3 | 8 | 11 | 29 | |||||||||||
Depreciation and amortization expense(1) | 279 | 290 | 302 | 300 | 287 | 258 | |||||||||||
| Total depreciation and amortization expense | 357 | 292 | 305 | 308 | 298 | 287 | |||||||||||
______________________________
(1) | Excludes accelerated depreciation and amortization expense as detailed in the table above, which amounts are included in Certain Items above. |
(2) | Other Activities includes corporate Selling, general and administrative ("SG&A") expenses, the results of captive insurance companies and certain components of net periodic benefit cost (interest cost, expected return on plan assets and net actuarial gains and losses). |
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| Table 2 - Supplemental Segment Data and Reconciliation of Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures - Unaudited | | ||
| 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||
| (In $ millions, except percentages) | |||||||||||||||||||||||||||||||||||
| Operating Profit (Loss) / Operating Margin | |||||||||||||||||||||||||||||||||||
| Materials Solutions | 497 | 21.7 | % | 609 | 23.3 | % | 1,250 | 48.7 | % | 346 | 14.1 | % | 308 | 12.5 | % | 345 | 15.6 | % | |||||||||||||||||
Acetyl Chain(1) | 69 | 2.0 | % | 634 | 14.7 | % | 217 | 5.3 | % | 355 | 8.7 | % | 560 | 12.6 | % | 326 | 8.5 | % | |||||||||||||||||
Other Activities(2) | (240 | ) | (485 | ) | 41 | (526 | ) | (466 | ) | (273 | ) | ||||||||||||||||||||||||
| Total | 326 | 5.7 | % | 758 | 11.1 | % | 1,508 | 23.2 | % | 175 | 2.7 | % | 402 | 5.9 | % | 398 | 6.7 | % | |||||||||||||||||
Less: Net Earnings (Loss) Attributable to NCI(1) | (19 | ) | (4 | ) | — | — | — | — | |||||||||||||||||||||||||||
| Operating Profit (Loss) Attributable to Celanese Corporation | 345 | 6.1 | % | 762 | 11.2 | % | 1,508 | 23.2 | % | 175 | 2.7 | % | 402 | 5.9 | % | 398 | 6.7 | % | |||||||||||||||||
| Operating Profit (Loss) / Operating Margin Attributable to Celanese Corporation | |||||||||||||||||||||||||||||||||||
| Advanced Engineered Materials | 235 | 17.7 | % | 221 | 15.1 | % | 904 | 66.9 | % | 95 | 7.5 | % | 79 | 6.1 | % | 182 | 16.4 | % | |||||||||||||||||
| Consumer Specialties | 262 | 27.0 | % | 388 | 33.4 | % | 346 | 28.5 | % | 251 | 21.2 | % | 229 | 19.7 | % | 163 | 14.8 | % | |||||||||||||||||
| Total Materials Solutions | 497 | 21.7 | % | 609 | 23.3 | % | 1,250 | 48.7 | % | 346 | 14.1 | % | 308 | 12.5 | % | 345 | 15.6 | % | |||||||||||||||||
| Industrial Specialties | 72 | 6.7 | % | 76 | 6.2 | % | 64 | 5.5 | % | 86 | 7.3 | % | 102 | 8.3 | % | 89 | 8.6 | % | |||||||||||||||||
Acetyl Intermediates(1) | 16 | 0.6 | % | 562 | 16.1 | % | 153 | 4.7 | % | 269 | 8.3 | % | 458 | 12.9 | % | 237 | 7.7 | % | |||||||||||||||||
| Total Acetyl Chain | 88 | 2.5 | % | 638 | 14.8 | % | 217 | 5.3 | % | 355 | 8.7 | % | 560 | 12.6 | % | 326 | 8.5 | % | |||||||||||||||||
Other Activities(2) | (240 | ) | (485 | ) | 41 | (526 | ) | (466 | ) | (273 | ) | ||||||||||||||||||||||||
| Total | 345 | 6.1 | % | 762 | 11.2 | % | 1,508 | 23.2 | % | 175 | 2.7 | % | 402 | 5.9 | % | 398 | 6.7 | % | |||||||||||||||||
| Equity Earnings, Cost-Dividend Income, Other Income (Expense) Attributable to Celanese Corporation | |||||||||||||||||||||||||||||||||||
| Advanced Engineered Materials | 151 | (3) | 161 | 149 | 190 | 163 | 143 | ||||||||||||||||||||||||||||
| Consumer Specialties | 108 | 124 | 95 | 90 | 80 | 73 | |||||||||||||||||||||||||||||
| Total Materials Solutions | 259 | 285 | 244 | 280 | 243 | 216 | |||||||||||||||||||||||||||||
| Industrial Specialties | — | — | — | — | 2 | — | |||||||||||||||||||||||||||||
| Acetyl Intermediates | 7 | 21 | 5 | 13 | 10 | 9 | |||||||||||||||||||||||||||||
| Total Acetyl Chain | 7 | 21 | 5 | 13 | 12 | 9 | |||||||||||||||||||||||||||||
Other Activities(2) | 14 | 52 | 24 | 39 | 31 | 23 | |||||||||||||||||||||||||||||
| Total | 280 | 358 | 273 | 332 | 286 | 248 | |||||||||||||||||||||||||||||
Certain Items Attributable to Celanese Corporation (Table 8) | |||||||||||||||||||||||||||||||||||
| Advanced Engineered Materials | 11 | (53 | ) | (752 | ) | 16 | 60 | (38 | ) | ||||||||||||||||||||||||||
| Consumer Specialties | 41 | (52 | ) | (5 | ) | 34 | 23 | 97 | |||||||||||||||||||||||||||
| Total Materials Solutions | 52 | (105 | ) | (757 | ) | 50 | 83 | 59 | |||||||||||||||||||||||||||
| Industrial Specialties | 38 | (12 | ) | 9 | 2 | 1 | (19 | ) | |||||||||||||||||||||||||||
| Acetyl Intermediates | 365 | (36 | ) | 143 | 5 | (3 | ) | 62 | |||||||||||||||||||||||||||
| Total Acetyl Chain | 403 | (48 | ) | 152 | 7 | (2 | ) | 43 | |||||||||||||||||||||||||||
Other Activities(2) | 156 | 301 | (120 | ) | 398 | 324 | 95 | ||||||||||||||||||||||||||||
| Total | 611 | 148 | (725 | ) | 455 | 405 | 197 | ||||||||||||||||||||||||||||
| Adjusted EBIT / Adjusted EBIT Margin | |||||||||||||||||||||||||||||||||||
| Advanced Engineered Materials | 397 | 29.9 | % | 329 | 22.5 | % | 301 | 22.3 | % | 301 | 23.9 | % | 302 | 23.3 | % | 287 | 25.9 | % | |||||||||||||||||
| Consumer Specialties | 411 | 42.4 | % | 460 | 39.7 | % | 436 | 35.9 | % | 375 | 31.6 | % | 332 | 28.6 | % | 333 | 30.3 | % | |||||||||||||||||
| Total Materials Solutions | 808 | 35.2 | % | 789 | 30.1 | % | 737 | 28.7 | % | 676 | 27.6 | % | 634 | 25.8 | % | 620 | 28.1 | % | |||||||||||||||||
| Industrial Specialties | 110 | 10.2 | % | 64 | 5.2 | % | 73 | 6.3 | % | 88 | 7.4 | % | 105 | 8.6 | % | 70 | 6.8 | % | |||||||||||||||||
| Acetyl Intermediates | 388 | 14.1 | % | 547 | 15.7 | % | 301 | 9.3 | % | 287 | 8.9 | % | 465 | 13.1 | % | 308 | 10.0 | % | |||||||||||||||||
| Total Acetyl Chain | 498 | 14.2 | % | 611 | 14.2 | % | 374 | 9.2 | % | 375 | 9.2 | % | 570 | 12.9 | % | 378 | 9.9 | % | |||||||||||||||||
Other Activities(2) | (70 | ) | (132 | ) | (55 | ) | (89 | ) | (111 | ) | (155 | ) | |||||||||||||||||||||||
| Total | 1,236 | 21.8 | % | 1,268 | 18.6 | % | 1,056 | 16.2 | % | 962 | 15.0 | % | 1,093 | 16.2 | % | 843 | 14.2 | % | |||||||||||||||||
___________________________
(1) | Net earnings (loss) attributable to NCI is included within the Acetyl Intermediates segment. |
(2) | Other Activities includes corporate SG&A expenses, the results of captive insurance companies and certain components of net periodic benefit cost (interest cost, expected return on plan assets and net actuarial gains and losses). |
(3) | Includes $150 million of Equity in net earnings (loss) of affiliates and $1 million of Other income. |
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| Table 2 - Supplemental Segment Data and Reconciliation of Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures - Unaudited | | ||
| 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||
| (In $ millions, except percentages) | |||||||||||||||||||||||||||||||||||
Depreciation and Amortization Expense Attributable to Celanese Corporation(1) | |||||||||||||||||||||||||||||||||||
| Advanced Engineered Materials | 99 | 106 | 110 | 113 | 97 | 72 | |||||||||||||||||||||||||||||
| Consumer Specialties | 50 | 43 | 41 | 39 | 36 | 37 | |||||||||||||||||||||||||||||
| Total Materials Solutions | 149 | 149 | 151 | 152 | 133 | 109 | |||||||||||||||||||||||||||||
| Industrial Specialties | 36 | 48 | 49 | 53 | 45 | 41 | |||||||||||||||||||||||||||||
| Acetyl Intermediates | 83 | 81 | 86 | 80 | 96 | 97 | |||||||||||||||||||||||||||||
| Total Acetyl Chain | 119 | 129 | 135 | 133 | 141 | 138 | |||||||||||||||||||||||||||||
Other Activities(2) | 11 | 12 | 16 | 15 | 13 | 11 | |||||||||||||||||||||||||||||
| Total | 279 | 290 | 302 | 300 | 287 | 258 | |||||||||||||||||||||||||||||
| Operating EBITDA / Operating EBITDA Margin | |||||||||||||||||||||||||||||||||||
| Advanced Engineered Materials | 496 | 37.4 | % | 435 | 29.8 | % | 411 | 30.4 | % | 414 | 32.8 | % | 399 | 30.7 | % | 359 | 32.4 | % | |||||||||||||||||
| Consumer Specialties | 461 | 47.6 | % | 503 | 43.4 | % | 477 | 39.3 | % | 414 | 34.9 | % | 368 | 31.7 | % | 370 | 33.7 | % | |||||||||||||||||
| Total Materials Solutions | 957 | 41.7 | % | 938 | 35.8 | % | 888 | 34.6 | % | 828 | 33.8 | % | 767 | 31.2 | % | 729 | 33.0 | % | |||||||||||||||||
| Industrial Specialties | 146 | 13.5 | % | 112 | 9.2 | % | 122 | 10.6 | % | 141 | 11.9 | % | 150 | 12.3 | % | 111 | 10.7 | % | |||||||||||||||||
| Acetyl Intermediates | 471 | 17.2 | % | 628 | 18.0 | % | 387 | 11.9 | % | 367 | 11.4 | % | 561 | 15.8 | % | 405 | 13.1 | % | |||||||||||||||||
| Total Acetyl Chain | 617 | 17.6 | % | 740 | 17.2 | % | 509 | 12.5 | % | 508 | 12.4 | % | 711 | 16.0 | % | 516 | 13.5 | % | |||||||||||||||||
Other Activities(2) | (59 | ) | (120 | ) | (39 | ) | (74 | ) | (98 | ) | (144 | ) | |||||||||||||||||||||||
| Total | 1,515 | 26.7 | % | 1,558 | 22.9 | % | 1,358 | 20.9 | % | 1,262 | 19.7 | % | 1,380 | 20.4 | % | 1,101 | 18.6 | % | |||||||||||||||||
(1) | Excludes accelerated depreciation and amortization expense, which amounts are included in Certain Items above. See Table 1 for details. |
(2) | Other Activities includes corporate SG&A expenses, the results of captive insurance companies and certain components of net periodic benefit cost (interest cost, expected return on plan assets and net actuarial gains and losses). |
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Table 2a
Segment Data and Reconciliation of Adjusted EBIT - Non-GAAP Measures - Unaudited
| Q1 '17 | Q4 '16 | Q3 '16 | Q2 '16 | Q1 '16 | Q4 '15 | Q3 '15 | Q2 '15 | Q1 '15 | Q4 '14 | Q3 '14 | Q2 '14 | ||||||||||||||||||||||||
| (In $ millions) | |||||||||||||||||||||||||||||||||||
| Net Sales | |||||||||||||||||||||||||||||||||||
| Advanced Engineered Materials | 487 | 364 | 365 | 365 | 350 | 311 | 326 | 346 | 343 | 331 | 366 | 389 | |||||||||||||||||||||||
| Consumer Specialties | 218 | 225 | 225 | 235 | 244 | 246 | 247 | 249 | 227 | 278 | 291 | 289 | |||||||||||||||||||||||
| Total Materials Solutions | 705 | 589 | 590 | 600 | 594 | 557 | 573 | 595 | 570 | 609 | 657 | 678 | |||||||||||||||||||||||
| Industrial Specialties | 245 | 219 | 245 | 262 | 253 | 239 | 274 | 287 | 282 | 265 | 314 | 333 | |||||||||||||||||||||||
| Acetyl Intermediates | 619 | 597 | 589 | 592 | 663 | 644 | 680 | 707 | 713 | 814 | 937 | 901 | |||||||||||||||||||||||
| Eliminations | (70 | ) | (67 | ) | (71 | ) | (74 | ) | (76 | ) | (71 | ) | (82 | ) | (83 | ) | (87 | ) | (97 | ) | (109 | ) | (113 | ) | |||||||||||
| Total Acetyl Chain | 794 | 749 | 763 | 780 | 840 | 812 | 872 | 911 | 908 | 982 | 1,142 | 1,121 | |||||||||||||||||||||||
| Eliminations | (28 | ) | (27 | ) | (30 | ) | (29 | ) | (30 | ) | (35 | ) | (32 | ) | (29 | ) | (28 | ) | (32 | ) | (30 | ) | (30 | ) | |||||||||||
| Total | 1,471 | 1,311 | 1,323 | 1,351 | 1,404 | 1,334 | 1,413 | 1,477 | 1,450 | 1,559 | 1,769 | 1,769 | |||||||||||||||||||||||
| Operating Profit (Loss) Attributable to Celanese Corporation | |||||||||||||||||||||||||||||||||||
| Advanced Engineered Materials | 98 | 87 | 93 | 82 | 88 | 51 | 58 | 67 | 59 | 57 | 51 | 56 | |||||||||||||||||||||||
| Consumer Specialties | 68 | 76 | 68 | 80 | 78 | 46 | 77 | 77 | 62 | 104 | 105 | 80 | |||||||||||||||||||||||
| Total Materials Solutions | 166 | 163 | 161 | 162 | 166 | 97 | 135 | 144 | 121 | 161 | 156 | 136 | |||||||||||||||||||||||
| Industrial Specialties | 25 | 20 | 25 | 29 | 31 | (4 | ) | 19 | 28 | 29 | 16 | 16 | 24 | ||||||||||||||||||||||
Acetyl Intermediates(1) | 26 | 65 | 82 | 75 | 112 | (239 | ) | 64 | 58 | 133 | 146 | 175 | 143 | ||||||||||||||||||||||
| Eliminations | — | — | — | 1 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
| Total Acetyl Chain | 51 | 85 | 107 | 105 | 143 | (243 | ) | 83 | 86 | 162 | 162 | 191 | 167 | ||||||||||||||||||||||
Other Activities(2) | (26 | ) | (132 | ) | (23 | ) | (26 | ) | (24 | ) | (156 | ) | (22 | ) | (38 | ) | (24 | ) | (376 | ) | (36 | ) | (43 | ) | |||||||||||
| Total | 191 | 116 | 245 | 241 | 285 | (302 | ) | 196 | 192 | 259 | (53 | ) | 311 | 260 | |||||||||||||||||||||
| Equity Earnings, Cost-Dividend Income, Other Income (Expense) Attributable to Celanese Corporation | |||||||||||||||||||||||||||||||||||
| Advanced Engineered Materials | 42 | 31 | 33 | 27 | 31 | 33 | 44 | 31 | 43 | 40 | 43 | 45 | |||||||||||||||||||||||
| Consumer Specialties | 30 | 27 | 27 | 28 | 28 | 27 | 26 | 27 | 28 | 30 | 29 | 35 | |||||||||||||||||||||||
| Total Materials Solutions | 72 | 58 | 60 | 55 | 59 | 60 | 70 | 58 | 71 | 70 | 72 | 80 | |||||||||||||||||||||||
| Industrial Specialties | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
| Acetyl Intermediates | 1 | 2 | 1 | 2 | 2 | 3 | 2 | 1 | 1 | 3 | 2 | 15 | |||||||||||||||||||||||
| Total Acetyl Chain | 1 | 2 | 1 | 2 | 2 | 3 | 2 | 1 | 1 | 3 | 2 | 15 | |||||||||||||||||||||||
Other Activities(2) | 4 | 7 | 6 | 5 | 4 | 5 | (4 | ) | 9 | 4 | 6 | 5 | 36 | ||||||||||||||||||||||
| Total | 77 | 67 | 67 | 62 | 65 | 68 | 68 | 68 | 76 | 79 | 79 | 131 | |||||||||||||||||||||||
___________________________
(1) | Excludes amounts attributable to NCI as follows: |
| Q1 '17 | Q4 '16 | Q3 '16 | Q2 '16 | Q1 '16 | Q4 '15 | Q3 '15 | Q2 '15 | Q1 '15 | Q4 '14 | Q3 '14 | Q2 '14 | ||||||||||||||||||||||||
| (In $ millions) | |||||||||||||||||||||||||||||||||||
| Operating Profit (Loss) | 1 | 1 | 1 | 2 | 2 | (3 | ) | (10 | ) | (4 | ) | (2 | ) | (1 | ) | (1 | ) | (1 | ) | ||||||||||||||||
(2) | Other Activities includes corporate SG&A expenses, the results of captive insurance companies and certain components of net periodic benefit cost (interest cost, expected return on plan assets and net actuarial gains and losses). |
7
Table 2a
Segment Data and Reconciliation of Adjusted EBIT - Non-GAAP Measures - Unaudited (Cont.)
| Q1 '17 | Q4 '16 | Q3 '16 | Q2 '16 | Q1 '16 | Q4 '15 | Q3 '15 | Q2 '15 | Q1 '15 | Q4 '14 | Q3 '14 | Q2 '14 | ||||||||||||||||||||||||
| (In $ millions, except percentages) | |||||||||||||||||||||||||||||||||||
| Certain Items Attributable to Celanese Corporation | |||||||||||||||||||||||||||||||||||
| Advanced Engineered Materials | 3 | 3 | 1 | 2 | 1 | 1 | 4 | 4 | 2 | (33 | ) | (7 | ) | (7 | ) | ||||||||||||||||||||
| Consumer Specialties | 2 | 3 | 3 | — | — | 36 | 2 | 1 | 2 | (24 | ) | (18 | ) | (8 | ) | ||||||||||||||||||||
| Total Material Solutions | 5 | 6 | 4 | 2 | 1 | 37 | 6 | 5 | 4 | (57 | ) | (25 | ) | (15 | ) | ||||||||||||||||||||
| Industrial Specialties | — | (2 | ) | — | 1 | 2 | 26 | 9 | 2 | 1 | (9 | ) | (1 | ) | (2 | ) | |||||||||||||||||||
| Acetyl Intermediates | 56 | 1 | 1 | 3 | 1 | 296 | 18 | 48 | 3 | (12 | ) | (9 | ) | (12 | ) | ||||||||||||||||||||
| Total Acetyl Chain | 56 | (1 | ) | 1 | 4 | 3 | 322 | 27 | 50 | 4 | (21 | ) | (10 | ) | (14 | ) | |||||||||||||||||||
Other Activities(1) | 4 | 101 | 2 | 3 | 4 | 131 | 8 | 10 | 7 | 334 | — | (33 | ) | ||||||||||||||||||||||
| Total | 65 | 106 | 7 | 9 | 8 | 490 | 41 | 65 | 15 | 256 | (35 | ) | (62 | ) | |||||||||||||||||||||
| Adjusted EBIT | |||||||||||||||||||||||||||||||||||
| Advanced Engineered Materials | 143 | 121 | 127 | 111 | 120 | 85 | 106 | 102 | 104 | 64 | 87 | 94 | |||||||||||||||||||||||
| Consumer Specialties | 100 | 106 | 98 | 108 | 106 | 109 | 105 | 105 | 92 | 110 | 116 | 107 | |||||||||||||||||||||||
| Total Material Solutions | 243 | 227 | 225 | 219 | 226 | 194 | 211 | 207 | 196 | 174 | 203 | 201 | |||||||||||||||||||||||
| Industrial Specialties | 25 | 18 | 25 | 30 | 33 | 22 | 28 | 30 | 30 | 7 | 15 | 22 | |||||||||||||||||||||||
| Acetyl Intermediates | 83 | 68 | 84 | 80 | 115 | 60 | 84 | 107 | 137 | 137 | 168 | 146 | |||||||||||||||||||||||
| Eliminations | — | — | — | 1 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
| Total Acetyl Chain | 108 | 86 | 109 | 111 | 148 | 82 | 112 | 137 | 167 | 144 | 183 | 168 | |||||||||||||||||||||||
Other Activities(1) | (18 | ) | (24 | ) | (15 | ) | (18 | ) | (16 | ) | (20 | ) | (18 | ) | (19 | ) | (13 | ) | (36 | ) | (31 | ) | (40 | ) | |||||||||||
| Total | 333 | 289 | 319 | 312 | 358 | 256 | 305 | 325 | 350 | 282 | 355 | 329 | |||||||||||||||||||||||
| Last Twelve Months | |||||||||||||||||||||||||||||||||||
| Acetyl Chain Adjusted EBIT | 414 | 479 | 662 | ||||||||||||||||||||||||||||||||
Acetyl Chain Adjusted EBIT margin(2) | 13.4 | % | 13.9 | % | 15.9 | % | |||||||||||||||||||||||||||||
______________________________
(1) | Other Activities includes corporate SG&A expenses, the results of captive insurance companies and certain components of net periodic benefit cost (interest cost, expected return on plan assets and net actuarial gains and losses). |
(2) | Defined as Acetyl Chain Adjusted EBIT divided by Net sales. |
8
Table 2a
Segment Data and Reconciliation of Adjusted EBIT - Non-GAAP Measures - Unaudited (Cont.)
| Q1 '14 | Q4 '13 | Q3 '13 | Q2 '13 | Q1 '13 | Q4 '12 | Q3 '12 | Q2 '12 | Q1 '12 | Q4 '11 | Q3 '11 | Q2 '11 | ||||||||||||||||||||||||
| (In $ millions) | |||||||||||||||||||||||||||||||||||
| Net Sales | |||||||||||||||||||||||||||||||||||
| Advanced Engineered Materials | 373 | 325 | 346 | 352 | 329 | 299 | 322 | 323 | 317 | 292 | 332 | 346 | |||||||||||||||||||||||
| Consumer Specialties | 302 | 295 | 310 | 314 | 295 | 281 | 314 | 327 | 264 | 306 | 298 | 291 | |||||||||||||||||||||||
| Total Materials Solutions | 675 | 620 | 656 | 666 | 624 | 580 | 636 | 650 | 581 | 598 | 630 | 637 | |||||||||||||||||||||||
| Industrial Specialties | 312 | 273 | 299 | 295 | 288 | 251 | 297 | 327 | 309 | 272 | 332 | 329 | |||||||||||||||||||||||
| Acetyl Intermediates | 841 | 829 | 795 | 809 | 808 | 773 | 785 | 821 | 852 | 849 | 975 | 914 | |||||||||||||||||||||||
| Eliminations | (92 | ) | (79 | ) | (85 | ) | (86 | ) | (84 | ) | (74 | ) | (80 | ) | (89 | ) | (78 | ) | (77 | ) | (95 | ) | (91 | ) | |||||||||||
| Total Acetyl Chain | 1,061 | 1,023 | 1,009 | 1,018 | 1,012 | 950 | 1,002 | 1,059 | 1,083 | 1,044 | 1,212 | 1,152 | |||||||||||||||||||||||
| Eliminations | (31 | ) | (27 | ) | (29 | ) | (31 | ) | (31 | ) | (29 | ) | (29 | ) | (34 | ) | (31 | ) | (28 | ) | (35 | ) | (36 | ) | |||||||||||
| Total | 1,705 | 1,616 | 1,636 | 1,653 | 1,605 | 1,501 | 1,609 | 1,675 | 1,633 | 1,614 | 1,807 | 1,753 | |||||||||||||||||||||||
| Operating Profit (Loss) Attributable to Celanese Corporation | |||||||||||||||||||||||||||||||||||
| Advanced Engineered Materials | 57 | 781 | 48 | 39 | 36 | 4 | 44 | 23 | 24 | (4 | ) | 16 | 27 | ||||||||||||||||||||||
| Consumer Specialties | 99 | 100 | 85 | 83 | 78 | 62 | 72 | 77 | 40 | 58 | 67 | 49 | |||||||||||||||||||||||
| Total Materials Solutions | 156 | 881 | 133 | 122 | 114 | 66 | 116 | 100 | 64 | 54 | 83 | 76 | |||||||||||||||||||||||
| Industrial Specialties | 20 | 7 | 24 | 18 | 15 | 6 | 25 | 35 | 20 | 17 | 31 | 28 | |||||||||||||||||||||||
Acetyl Intermediates(1) | 98 | (44 | ) | 67 | 55 | 75 | 66 | 63 | 78 | 62 | 64 | 129 | 153 | ||||||||||||||||||||||
| Total Acetyl Chain | 118 | (37 | ) | 91 | 73 | 90 | 72 | 88 | 113 | 82 | 81 | 160 | 181 | ||||||||||||||||||||||
Other Activities(2) | (30 | ) | 100 | (13 | ) | (26 | ) | (20 | ) | (428 | ) | (28 | ) | (35 | ) | (35 | ) | (340 | ) | (42 | ) | (44 | ) | ||||||||||||
| Total | 244 | 944 | 211 | 169 | 184 | (290 | ) | 176 | 178 | 111 | (205 | ) | 201 | 213 | |||||||||||||||||||||
| Equity Earnings, Cost-Dividend Income, Other Income (Expense) Attributable to Celanese Corporation | |||||||||||||||||||||||||||||||||||
| Advanced Engineered Materials | 33 | 33 | 31 | 45 | 40 | 47 | 45 | 55 | 43 | 36 | 53 | 39 | |||||||||||||||||||||||
| Consumer Specialties | 30 | 24 | 21 | 24 | 26 | 5 | — | 84 | 1 | — | — | 79 | |||||||||||||||||||||||
| Total Materials Solutions | 63 | 57 | 52 | 69 | 66 | 52 | 45 | 139 | 44 | 36 | 53 | 118 | |||||||||||||||||||||||
| Industrial Specialties | — | — | — | — | — | — | — | — | — | 1 | 1 | — | |||||||||||||||||||||||
| Acetyl Intermediates | 1 | (4 | ) | 3 | 3 | 3 | 8 | 2 | 2 | 1 | 3 | 3 | 2 | ||||||||||||||||||||||
| Total Acetyl Chain | 1 | (4 | ) | 3 | 3 | 3 | 8 | 2 | 2 | 1 | 4 | 4 | 2 | ||||||||||||||||||||||
Other Activities(2) | 5 | — | 6 | 10 | 8 | 20 | 7 | 4 | 8 | 11 | 1 | 11 | |||||||||||||||||||||||
| Total | 69 | 53 | 61 | 82 | 77 | 80 | 54 | 145 | 53 | 51 | 58 | 131 | |||||||||||||||||||||||
___________________________
(1) | Excludes amounts attributable to NCI as follows: |
| Q1 '14 | Q4 '13 | Q3 '13 | Q2 '13 | Q1 '13 | Q4 '12 | Q3 '12 | Q2 '12 | Q1 '12 | Q4 '11 | Q3 '11 | Q2 '11 | ||||||||||||||||||||||||
| (In $ millions) | |||||||||||||||||||||||||||||||||||
| Operating Profit (Loss) | (1 | ) | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
(2) | Other Activities includes corporate SG&A expenses, the results of captive insurance companies and certain components of net periodic benefit cost (interest cost, expected return on plan assets and net actuarial gains and losses). |
9
Table 2a
Segment Data and Reconciliation of Adjusted EBIT - Non-GAAP Measures - Unaudited (Cont.)
| Q1 '14 | Q4 '13 | Q3 '13 | Q2 '13 | Q1 '13 | Q4 '12 | Q3 '12 | Q2 '12 | Q1 '12 | Q4 '11 | Q3 '11 | Q2 '11 | ||||||||||||||||||||||||
| (In $ millions, except percentages) | |||||||||||||||||||||||||||||||||||
| Certain Items Attributable to Celanese Corporation | |||||||||||||||||||||||||||||||||||
| Advanced Engineered Materials | (6 | ) | (758 | ) | 2 | 2 | 2 | 11 | (8 | ) | 10 | 3 | 8 | 18 | 22 | ||||||||||||||||||||
| Consumer Specialties | (2 | ) | (13 | ) | 2 | 2 | 4 | 11 | 7 | (1 | ) | 17 | 5 | 3 | 10 | ||||||||||||||||||||
| Total Materials Solutions | (8 | ) | (771 | ) | 4 | 4 | 6 | 22 | (1 | ) | 9 | 20 | 13 | 21 | 32 | ||||||||||||||||||||
| Industrial Specialties | — | 6 | 1 | 1 | 1 | — | — | — | 2 | 1 | — | — | |||||||||||||||||||||||
| Acetyl Intermediates | (3 | ) | 132 | 2 | 8 | 1 | (5 | ) | 7 | 1 | 2 | 4 | 12 | (2 | ) | ||||||||||||||||||||
| Total Acetyl Chain | (3 | ) | 138 | 3 | 9 | 2 | (5 | ) | 7 | 1 | 4 | 5 | 12 | (2 | ) | ||||||||||||||||||||
Other Activities(1) | — | (120 | ) | — | — | — | 381 | — | 9 | 8 | 307 | 10 | 3 | ||||||||||||||||||||||
| Total | (11 | ) | (753 | ) | 7 | 13 | 8 | 398 | 6 | 19 | 32 | 325 | 43 | 33 | |||||||||||||||||||||
| Adjusted EBIT | |||||||||||||||||||||||||||||||||||
| Advanced Engineered Materials | 84 | 56 | 81 | 86 | 78 | 62 | 81 | 88 | 70 | 40 | 87 | 88 | |||||||||||||||||||||||
| Consumer Specialties | 127 | 111 | 108 | 109 | 108 | 78 | 79 | 160 | 58 | 63 | 70 | 138 | |||||||||||||||||||||||
| Total Materials Solutions | 211 | 167 | 189 | 195 | 186 | 140 | 160 | 248 | 128 | 103 | 157 | 226 | |||||||||||||||||||||||
| Industrial Specialties | 20 | 13 | 25 | 19 | 16 | 6 | 25 | 35 | 22 | 19 | 32 | 28 | |||||||||||||||||||||||
| Acetyl Intermediates | 96 | 84 | 72 | 66 | 79 | 69 | 72 | 81 | 65 | 71 | 144 | 153 | |||||||||||||||||||||||
| Total Acetyl Chain | 116 | 97 | 97 | 85 | 95 | 75 | 97 | 116 | 87 | 90 | 176 | 181 | |||||||||||||||||||||||
Other Activities(1) | (25 | ) | (20 | ) | (7 | ) | (16 | ) | (12 | ) | (27 | ) | (21 | ) | (22 | ) | (19 | ) | (22 | ) | (31 | ) | (30 | ) | |||||||||||
| Total | 302 | 244 | 279 | 264 | 269 | 188 | 236 | 342 | 196 | 171 | 302 | 377 | |||||||||||||||||||||||
| Last Twelve Months ("LTM") | |||||||||||||||||||||||||||||||||||
| Acetyl Chain Adjusted EBIT | 395 | 383 | 534 | ||||||||||||||||||||||||||||||||
Acetyl Chain Adjusted EBIT margin(2) | 9.6 | % | 9.5 | % | 11.9 | % | |||||||||||||||||||||||||||||
______________________________
(1) | Other Activities includes corporate SG&A expenses, the results of captive insurance companies and certain components of net periodic benefit cost (interest cost, expected return on plan assets and net actuarial gains and losses). |
(2) | Defined as Acetyl Chain Adjusted EBIT divided by Net sales. |
10
Table 3
Adjusted Earnings (Loss) per Share - Reconciliation of a Non-GAAP Measure - Unaudited
| 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||||||
| per share | per share | per share | per share | per share | per share | ||||||||||||||||||||||||||||||
| (In $ millions, except per share data) | |||||||||||||||||||||||||||||||||||
| Earnings (loss) from continuing operations attributable to Celanese Corporation | 306 | 2.01 | 631 | 4.04 | 1,101 | 6.91 | 376 | 2.35 | 426 | 2.68 | 361 | 2.28 | |||||||||||||||||||||||
| Income tax provision (benefit) | 201 | 314 | 508 | (55 | ) | 41 | 72 | ||||||||||||||||||||||||||||
| Earnings (loss) from continuing operations before tax | 507 | 945 | 1,609 | 321 | 467 | 433 | |||||||||||||||||||||||||||||
Certain Items attributable to Celanese Corporation (Table 8) | 611 | 148 | (725 | ) | 455 | 405 | 197 | ||||||||||||||||||||||||||||
| Refinancing and related expenses | — | 29 | 1 | 8 | 3 | 16 | |||||||||||||||||||||||||||||
| Adjusted earnings (loss) from continuing operations before tax | 1,118 | 1,122 | 885 | 784 | 875 | 646 | |||||||||||||||||||||||||||||
Income tax (provision) benefit on adjusted earnings(1) | (201 | ) | (236 | ) | (168 | ) | (133 | ) | (158 | ) | (136 | ) | |||||||||||||||||||||||
Adjusted earnings (loss) from continuing operations(2) | 917 | 6.02 | 886 | 5.67 | 717 | 4.50 | 651 | 4.07 | 717 | 4.51 | 510 | 3.22 | |||||||||||||||||||||||
Diluted shares (in millions)(3) | |||||||||||||||||||||||||||||||||||
| Weighted average shares outstanding | 150.8 | 155.0 | 158.8 | 158.4 | 156.2 | 154.6 | |||||||||||||||||||||||||||||
| Incremental shares attributable to equity awards | 1.5 | 1.2 | 0.5 | 1.4 | 2.7 | 2.2 | |||||||||||||||||||||||||||||
| Assumed conversion of preferred stock | — | — | — | — | — | 1.6 | |||||||||||||||||||||||||||||
| Total diluted shares | 152.3 | 156.2 | 159.3 | 159.8 | 158.9 | 158.4 | |||||||||||||||||||||||||||||
______________________________
(1) | Calculated using adjusted effective tax rates as follows: |
| 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||||
| (In percentages) | |||||||||||||||||||||||
| Adjusted effective tax rate | 18 | 21 | 19 | 17 | 18 | 21 | |||||||||||||||||
(2) | Excludes the immediate recognition of actuarial gains and losses and the impact of actual vs. expected plan asset returns. |
| Actual Plan Asset Returns | Expected Plan Asset Returns | |||||
| (In percentages) | ||||||
| 2015 | (2.5 | ) | 7.8 | |||
| 2014 | 12.7 | 8.2 | ||||
| 2013 | 7.9 | 8.0 | ||||
| 2012 | 13.1 | 8.1 | ||||
| 2011 | 7.6 | 8.1 | ||||
| 2010 | 15.1 | 8.1 | ||||
(3) | Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive. |
11
Table 3a
Adjusted Tax Rate - Reconciliation of a Non-GAAP Measure - Unaudited
| Actual | ||
| 2015 | ||
| (In percentages) | ||
| US GAAP effective tax rate | 41 | |
Discrete quarterly recognition of GAAP items(1) | 2 | |
Tax impact of other charges and adjustments(2) | (15 | ) |
Utilization of foreign tax credits(3) | (2 | ) |
Changes in valuation allowances, excluding impact of other charges and adjustments(4) | (5 | ) |
Other(5) | (3 | ) |
| Adjusted tax rate | 18 | |
______________________________
(1) | Such as changes in uncertain tax positions, prior year audit adjustments, changes in tax laws and deferred taxes on outside basis differences. |
(2) | Reflects the tax impact on pre-tax adjustments presented in Certain Items (Table 8), which are excluded from pre-tax income for adjusted earnings per share purposes. During 2015, the Company recorded a $123 million long-lived impairment to fully write-off certain ethanol related assets at our facility in Nanjing, China and $174 million charge related to the termination of an existing agreement with a raw materials supplier in Singapore. For US GAAP purposes, these charges were incurred in jurisdictions for which valuation allowances are being recorded. These combined charges make up the majority of the 15% impact for 2015. |
(3) | During 2012, the Company amended its tax returns and recognized $142 million in foreign tax credits for U.S. GAAP purposes. The Company reflects the benefits of these tax credits for adjusted tax rate purposes as they are utilized. |
(4) | Reflects changes in valuation allowances related to changes in judgment regarding the realizability of deferred tax assets or current year operations, excluding other charges and adjustments. |
(5) | Tax impacts related to full-year forecasted tax opportunities and related costs. |
12
Table 4
Net Sales by Segment - Unaudited
| 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||
| (In $ millions) | |||||||||||||||||
| Advanced Engineered Materials | 1,326 | 1,459 | 1,352 | 1,261 | 1,298 | 1,109 | |||||||||||
| Consumer Specialties | 969 | 1,160 | 1,214 | 1,186 | 1,161 | 1,098 | |||||||||||
| Total Materials Solutions | 2,295 | 2,619 | 2,566 | 2,447 | 2,459 | 2,207 | |||||||||||
| Industrial Specialties | 1,082 | 1,224 | 1,155 | 1,184 | 1,223 | 1,036 | |||||||||||
| Acetyl Intermediates | 2,744 | 3,493 | 3,241 | 3,231 | 3,551 | 3,082 | |||||||||||
Eliminations(1) | (323 | ) | (411 | ) | (334 | ) | (321 | ) | (340 | ) | (283 | ) | |||||
| Total Acetyl Chain | 3,503 | 4,306 | 4,062 | 4,094 | 4,434 | 3,835 | |||||||||||
Other Activities(2) | — | — | — | — | 1 | 2 | |||||||||||
Intersegment eliminations(1) | (124 | ) | (123 | ) | (118 | ) | (123 | ) | (131 | ) | (126 | ) | |||||
| Net sales | 5,674 | 6,802 | 6,510 | 6,418 | 6,763 | 5,918 | |||||||||||
___________________________
(1) | Includes intersegment sales as follows: |
| 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||
| (In $ millions) | |||||||||||||||||
| Consumer Specialties | — | (2 | ) | (4 | ) | (4 | ) | (3 | ) | (9 | ) | ||||||
| Acetyl Intermediates | (447 | ) | (532 | ) | (448 | ) | (440 | ) | (468 | ) | (400 | ) | |||||
| Intersegment eliminations | (447 | ) | (534 | ) | (452 | ) | (444 | ) | (471 | ) | (409 | ) | |||||
(2) | Other Activities includes corporate SG&A expenses, the results of captive insurance companies and certain components of net periodic benefit cost (interest cost, expected return on plan assets and net actuarial gains and losses). |
13
Table 4a
Factors Affecting Segment Net Sales Year Over Year - Unaudited
Year Ended December 31, 2015 Compared to Year Ended December 31, 2014
| Volume | Price | Currency | Other | Total | |||||||||
| (In percentages) | |||||||||||||
| Advanced Engineered Materials | (1 | ) | (1 | ) | (7 | ) | — | (9 | ) | ||||
| Consumer Specialties | (13 | ) | (3 | ) | (1 | ) | — | (17 | ) | ||||
| Total Materials Solutions | (6 | ) | (2 | ) | (4 | ) | — | (12 | ) | ||||
| Industrial Specialties | — | (4 | ) | (8 | ) | — | (12 | ) | |||||
| Acetyl Intermediates | (3 | ) | (13 | ) | (6 | ) | — | (22 | ) | ||||
| Total Acetyl Chain | (3 | ) | (11 | ) | (7 | ) | 2 | (19 | ) | ||||
| Total Company | (4 | ) | (8 | ) | (6 | ) | 1 | (17 | ) | ||||
Year Ended December 31, 2014 Compared to Year Ended December 31, 2013
| Volume | Price | Currency | Other | Total | |||||||||
| (In percentages) | |||||||||||||
| Advanced Engineered Materials | 9 | (1 | ) | — | — | 8 | |||||||
| Consumer Specialties | (5 | ) | 1 | — | — | (4 | ) | ||||||
| Total Materials Solutions | 2 | — | — | — | 2 | ||||||||
| Industrial Specialties | 1 | 5 | — | — | 6 | ||||||||
| Acetyl Intermediates | (3 | ) | 11 | — | — | 8 | |||||||
| Total Acetyl Chain | (2 | ) | 10 | — | (2 | ) | 6 | ||||||
| Total Company | — | 6 | — | (1 | ) | 5 | |||||||
Year Ended December 31, 2013 Compared to Year Ended December 31, 2012
| Volume | Price | Currency | Other | Total | |||||||||
| (In percentages) | |||||||||||||
| Advanced Engineered Materials | 5 | 1 | 1 | — | 7 | ||||||||
| Consumer Specialties | (4 | ) | 6 | — | — | 2 | |||||||
| Total Materials Solutions | 1 | 3 | 1 | — | 5 | ||||||||
| Industrial Specialties | (1 | ) | (3 | ) | 2 | — | (2 | ) | |||||
| Acetyl Intermediates | 1 | (2 | ) | 1 | — | — | |||||||
| Total Acetyl Chain | — | (2 | ) | 2 | (1 | ) | (1 | ) | |||||
| Total Company | — | — | 1 | — | 1 | ||||||||
Year Ended December 31, 2012 Compared to Year Ended December 31, 2011
| Volume | Price | Currency | Other | Total | |||||||||
| (In percentages) | |||||||||||||
| Advanced Engineered Materials | (2 | ) | 2 | (3 | ) | — | (3 | ) | |||||
| Consumer Specialties | (4 | ) | 6 | — | — | 2 | |||||||
| Total Materials Solutions | (2 | ) | 4 | (2 | ) | — | — | ||||||
| Industrial Specialties | 3 | (3 | ) | (3 | ) | — | (3 | ) | |||||
| Acetyl Intermediates | — | (7 | ) | (2 | ) | — | (9 | ) | |||||
| Total Acetyl Chain | 1 | (7 | ) | (3 | ) | 1 | (8 | ) | |||||
| Total Company | — | (3 | ) | (2 | ) | — | (5 | ) | |||||
Year Ended December 31, 2011 Compared to Year Ended December 31, 2010
____________________
| Volume | Price | Currency | Other | Total | |||||||
| (In percentages) | |||||||||||
| Advanced Engineered Materials | 2 | 8 | 3 | 4 | (1) | 17 | |||||
| Consumer Specialties | 1 | 5 | — | — | 6 | ||||||
| Total Materials Solutions | 1 | 6 | 2 | 2 | 11 | ||||||
| Industrial Specialties | 2 | 13 | 3 | — | 18 | ||||||
| Acetyl Intermediates | (4 | ) | 16 | 3 | — | 15 | |||||
| Total Acetyl Chain | (3 | ) | 17 | 3 | (1 | ) | 16 | ||||
| Total Company | (1 | ) | 13 | 3 | — | 15 | |||||
(1) | Includes the effects of the two product lines acquired in May 2010 from DuPont Performance Polymers. |
14
Table 4a
Factors Affecting Segment Net Sales Year Over Year - Unaudited (Cont.)
Year Ended December 31, 2010 Compared to Year Ended December 31, 2009
____________________
| Volume | Price | Currency | Other | Total | |||||||
| (In percentages) | |||||||||||
| Advanced Engineered Materials | 35 | 1 | (3 | ) | 4 | (1) | 37 | ||||
| Consumer Specialties | 2 | — | (1 | ) | — | 1 | |||||
| Total Materials Solutions | 16 | 1 | (2 | ) | 2 | 17 | |||||
| Industrial Specialties | 11 | 6 | (3 | ) | (8 | ) | (2) | 6 | |||
| Acetyl Intermediates | 10 | 10 | (2 | ) | — | 18 | |||||
| Total Acetyl Chain | 11 | 10 | (2 | ) | (3 | ) | 16 | ||||
| Total Company | 13 | 7 | (2 | ) | (2 | ) | (3) | 16 | |||
(1) | 2010 includes the effects of the FACT GmbH (Future Advanced Composites Technology) and DuPont acquisitions. |
(2) | 2010 does not include the effects of the PVOH business, which was sold on July 1, 2009. |
(3) | Includes the effects of the captive insurance companies and the impact of fluctuations in intersegment eliminations. |
15
Table 5
Free Cash Flow - Reconciliation of a Non-GAAP Measure - Unaudited
| 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||
| (In $ millions) | |||||||||||||||||
| Net cash provided by (used in) investing activities | (558 | ) | (705 | ) | (422 | ) | (500 | ) | (441 | ) | (560 | ) | |||||
| Net cash provided by (used in) financing activities | (66 | ) | (415 | ) | (326 | ) | 49 | (253 | ) | (388 | ) | ||||||
| Net cash provided by (used in) operating activities | 862 | 962 | 762 | 722 | 638 | 452 | |||||||||||
| Capital expenditures on property, plant and equipment | (520 | ) | (678 | ) | (370 | ) | (361 | ) | (349 | ) | (201 | ) | |||||
| Capital (distributions to) contributions from NCI | 214 | 264 | — | — | — | — | |||||||||||
Free cash flow(1)(2) | 556 | 548 | 392 | 361 | 289 | 251 | |||||||||||
______________________________
(1) | Free cash flow is a liquidity measure used by the Company and is defined by the Company as net cash provided by (used in) operating activities, less capital expenditures on property, plant and equipment, and adjusted for capital contributions from or distributions to Mitsui & Co., Ltd. ("Mitsui") related to our joint venture, Fairway Methanol LLC ("Fairway"). |
(2) | Excludes required debt service and capital lease payments of $25 million for the year ended December 31, 2015. |
16
Table 6
Cash Dividends Received - Unaudited
| 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||
| (In $ millions) | |||||||||||||||||
| Dividends from equity method investments | 176 | 148 | 141 | 262 | 205 | 138 | |||||||||||
| Dividends from cost method investments | 107 | 116 | 93 | 85 | 80 | 73 | |||||||||||
| Total | 283 | 264 | 234 | 347 | 285 | 211 | |||||||||||
Table 7
Net Debt - Reconciliation of a Non-GAAP Measure - Unaudited
| 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||
| (In $ millions) | |||||||||||||||||
| Short-term borrowings and current installments of long-term debt - third party and affiliates | 513 | 137 | 177 | 168 | 144 | 228 | |||||||||||
| Long-term debt, net of unamortized deferred financing costs | 2,468 | 2,586 | 2,863 | 2,903 | 2,849 | 2,990 | |||||||||||
| Total debt | 2,981 | 2,723 | 3,040 | 3,071 | 2,993 | 3,218 | |||||||||||
| Cash and cash equivalents | (967 | ) | (780 | ) | (984 | ) | (959 | ) | (682 | ) | (740 | ) | |||||
| Net debt | 2,014 | 1,943 | 2,056 | 2,112 | 2,311 | 2,478 | |||||||||||
17
Table 8
Certain Items - Unaudited
The following Certain Items attributable to Celanese Corporation are included in Net earnings (loss) and are adjustments to non-GAAP measures:
| 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | Income Statement Classification | |||||||||||||
| (In $ millions) | |||||||||||||||||||
Employee termination benefits(1) | 53 | 7 | 23 | 6 | 22 | 32 | Other charges (gains), net | ||||||||||||
| Plant/office closures | 48 | 6 | 43 | 21 | 18 | 21 | Other charges (gains), net / Cost of sales / SG&A | ||||||||||||
| Singapore contract termination | 174 | — | — | — | — | — | Other charges (gains), net | ||||||||||||
| Business optimization | 20 | 8 | — | 9 | 8 | 16 | Cost of sales / SG&A | ||||||||||||
| Asset impairments | 126 | — | 83 | 8 | 1 | 74 | Other charges (gains), net / Other income (expense), net | ||||||||||||
| (Gain) loss on disposition of business and assets, net | 4 | 3 | 2 | 1 | (1 | ) | (10 | ) | (Gain) loss on disposition, net | ||||||||||
Commercial disputes(2) | 6 | (11 | ) | 12 | (2 | ) | (7 | ) | 9 | Other charges (gains), net / Cost of sales / SG&A | |||||||||
| Kelsterbach plant relocation | — | (1 | ) | (727 | ) | 21 | 55 | 13 | Other charges (gains), net / Cost of sales / (Gain) loss on disposition | ||||||||||
| InfraServ Hoechst restructuring | — | (48 | ) | 8 | (22 | ) | — | — | Equity in net (earnings) loss of affiliates | ||||||||||
| Plumbing actions | — | — | — | (5 | ) | (6 | ) | (59 | ) | Other charges (gains), net | |||||||||
| Insurance recoveries | — | — | — | — | — | (18 | ) | Other charges (gains), net | |||||||||||
| Write-off of other productive assets | 39 | 5 | — | — | (1 | ) | 18 | Cost of sales / R&D | |||||||||||
| Acetate production interruption costs | — | — | — | 10 | — | 9 | Cost of sales | ||||||||||||
| Employee benefit plan changes | 4 | (155 | ) | (71 | ) | — | — | — | Cost of sales / SG&A / R&D | ||||||||||
| Actuarial (gain) loss on pension and postretirement plans | 127 | 349 | (106 | ) | 389 | 306 | 84 | Cost of sales / SG&A / R&D | |||||||||||
Start-up costs(3) | 10 | — | — | — | — | — | Cost of sales | ||||||||||||
| Other | — | (15 | ) | 8 | 19 | 10 | 8 | Various | |||||||||||
| Certain Items attributable to Celanese Corporation | 611 | 148 | (725 | ) | 455 | 405 | 197 | ||||||||||||
______________________________
(1) | Primarily associated with site shutdown costs. |
(2) | Primarily associated with litigation settlement costs. |
(3) | Primarily associated with Fairway joint venture operational start-up costs. |
18
Table 9
Return on Invested Capital (Adjusted) - Presentation of a Non-GAAP Measure - Unaudited
| 2015 | 2014 | 2013 | ||||||||||||||||||||||||
| (In $ millions, except percentages) | ||||||||||||||||||||||||||
| Net earnings (loss) attributable to Celanese Corporation | 304 | 624 | 1,101 | |||||||||||||||||||||||
Adjusted EBIT (Table 1) | 1,236 | 1,268 | 1,056 | |||||||||||||||||||||||
| Adjusted effective tax rate | 18 | % | 21 | % | 19 | % | ||||||||||||||||||||
| Adjusted EBIT tax effected | 1,014 | 1,002 | 855 | |||||||||||||||||||||||
| 2015 | 2014 | Average | 2014 | 2013 | Average | 2013 | 2012 | Average | ||||||||||||||||||
| (In $ millions, except percentages) | ||||||||||||||||||||||||||
| Short-term borrowings and current installments of long-term debt - third parties and affiliates | 513 | 137 | 325 | 137 | 177 | 157 | 177 | 168 | 173 | |||||||||||||||||
| Long-term debt, net of unamortized deferred financing costs | 2,468 | 2,586 | 2,527 | 2,586 | 2,863 | 2,725 | 2,863 | 2,903 | 2,883 | |||||||||||||||||
| Celanese Corporation stockholders' equity | 2,378 | 2,818 | 2,598 | 2,818 | 2,699 | 2,759 | 2,699 | 1,730 | 2,215 | |||||||||||||||||
| Invested capital | 5,450 | 5,641 | 5,271 | |||||||||||||||||||||||
| Return on invested capital (adjusted) | 18.6 | % | 17.8 | % | 16.2 | % | ||||||||||||||||||||
| Net earnings (loss) attributable to Celanese Corporation as a percentage of invested capital | 5.6 | % | 11.1 | % | 20.9 | % | ||||||||||||||||||||
19
Table 9
Return on Invested Capital (Adjusted) - Presentation of a Non-GAAP Measure - Unaudited (Cont.)
| 2012 | 2011 | 2010 | ||||||||||||||||||||||||
| (In $ millions, except percentages) | ||||||||||||||||||||||||||
| Net earnings (loss) attributable to Celanese Corporation | 372 | 427 | 312 | |||||||||||||||||||||||
Adjusted EBIT (Table 1) | 962 | 1,093 | 843 | |||||||||||||||||||||||
| Adjusted effective tax rate | 17 | % | 18 | % | 21 | % | ||||||||||||||||||||
| Adjusted EBIT tax effected | 798 | 896 | 666 | |||||||||||||||||||||||
| 2012 | 2011 | Average | 2011 | 2010 | Average | 2010 | 2009 | Average | ||||||||||||||||||
| (In $ millions, except percentages) | ||||||||||||||||||||||||||
| Short-term borrowings and current installments of long-term debt - third parties and affiliates | 168 | 144 | 156 | 144 | 228 | 186 | 228 | 242 | 235 | |||||||||||||||||
| Long-term debt, net of unamortized deferred financing costs | 2,903 | 2,849 | 2,876 | 2,849 | 2,990 | 2,920 | 2,990 | 3,259 | 3,125 | |||||||||||||||||
| Celanese Corporation stockholders' equity | 1,730 | 1,341 | 1,536 | 1,341 | 926 | 1,134 | 926 | 586 | 756 | |||||||||||||||||
| Invested capital | 4,568 | 4,240 | 4,116 | |||||||||||||||||||||||
| Return on invested capital (adjusted) | 17.5 | % | 21.1 | % | 16.2 | % | ||||||||||||||||||||
| Net earnings (loss) attributable to Celanese Corporation as a percentage of invested capital | 8.1 | % | 10.1 | % | 7.6 | % | ||||||||||||||||||||
20