Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 09, 2024 | Jun. 30, 2023 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-32410 | ||
Entity Registrant Name | CELANESE CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 98-0420726 | ||
Entity Address, Address Line One | 222 W. Las Colinas Blvd., Suite 900N | ||
Entity Address, City or Town | Irving | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75039-5421 | ||
City Area Code | 972 | ||
Local Phone Number | 443-4000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Small Reporting Company | false | ||
Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 12,564,643,206 | ||
Entity Common Stock, Shares Outstanding | 108,906,426 | ||
Entity Central Index Key | 0001306830 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, par value $0.0001 per share | ||
Trading Symbol | CE | ||
Security Exchange Name | NYSE | ||
1.250% Senior Notes due 2025 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.250% Senior Notes due 2025 | ||
Trading Symbol | CE /25 | ||
Security Exchange Name | NYSE | ||
4.777% Senior Notes due 2026 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 4.777% Senior Notes due 2026 | ||
Trading Symbol | CE /26A | ||
Security Exchange Name | NYSE | ||
2.125% Senior Notes due 2027 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.125% Senior Notes due 2027 | ||
Trading Symbol | CE /27 | ||
Security Exchange Name | NYSE | ||
0.625% Senior Notes due 2028 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 0.625% Senior Notes due 2028 | ||
Trading Symbol | CE /28 | ||
Security Exchange Name | NYSE | ||
5.337% Senior Notes due 2029 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 5.337% Senior Notes due 2029 | ||
Trading Symbol | CE /29A | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Dallas, TX |
Auditor Firm ID | 185 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Net sales | $ 10,940 | $ 9,673 | $ 8,537 |
Cost of sales | (8,337) | (7,293) | (5,855) |
Gross profit | 2,603 | 2,380 | 2,682 |
Selling, general and administrative expenses | (1,075) | (824) | (633) |
Amortization of intangible assets | (164) | (62) | (25) |
Research and development expenses | (146) | (112) | (86) |
Other (charges) gains, net | (68) | (8) | 3 |
Foreign exchange gain (loss), net | 32 | (1) | 2 |
Gain (loss) on disposition of businesses and assets, net | 505 | 5 | 3 |
Operating profit (loss) | 1,687 | 1,378 | 1,946 |
Equity in net earnings (loss) of affiliates | 102 | 220 | 146 |
Non-operating pension and other postretirement employee benefit (expense) income | (69) | 17 | 106 |
Interest expense | (720) | (405) | (91) |
Accelerated amortization due to refinancing activity | (7) | 0 | (9) |
Interest income | 39 | 69 | 8 |
Dividend income - equity investments | 126 | 133 | 147 |
Other income (expense), net | 25 | 9 | (5) |
Earnings (loss) from continuing operations before tax | 1,183 | 1,421 | 2,248 |
Income tax (provision) benefit | 790 | 489 | (330) |
Earnings (loss) from continuing operations | 1,973 | 1,910 | 1,918 |
Earnings (loss) from operation of discontinued operations | (12) | (9) | (27) |
Income tax (provision) benefit from discontinued operations | 3 | 1 | 5 |
Earnings (loss) from discontinued operations | (9) | (8) | (22) |
Net earnings (loss) | 1,964 | 1,902 | 1,896 |
Net (earnings) loss attributable to noncontrolling interests | (4) | (8) | (6) |
Net earnings (loss) attributable to Celanese Corporation | 1,960 | 1,894 | 1,890 |
Amounts attributable to Celanese Corporation | |||
Earnings (loss) from continuing operations | 1,969 | 1,902 | 1,912 |
Earnings (loss) from discontinued operations | (9) | (8) | (22) |
Net earnings (loss) attributable to Celanese Corporation | $ 1,960 | $ 1,894 | $ 1,890 |
Earnings (loss) per common share - basic | |||
Continuing operations | $ 18.09 | $ 17.55 | $ 17.19 |
Discontinued operations | (0.08) | (0.07) | (0.20) |
Net earnings (loss) - basic | 18.01 | 17.48 | 16.99 |
Earnings (loss) per common share - diluted | |||
Continuing operations | 18 | 17.41 | 17.06 |
Discontinued operations | (0.08) | (0.07) | (0.20) |
Net earnings (loss) - diluted | $ 17.92 | $ 17.34 | $ 16.86 |
Weighted average shares - basic | 108,848,962 | 108,380,082 | 111,224,017 |
Weighted average shares - diluted | 109,379,664 | 109,235,376 | 112,084,412 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings (loss) | $ 1,964 | $ 1,902 | $ 1,896 |
Other comprehensive income (loss), net of tax | |||
Foreign currency translation gain (loss) | (213) | (217) | (11) |
Gain (loss) on derivative hedges | (6) | 21 | 13 |
Pension and postretirement benefits | (7) | 7 | (3) |
Total other comprehensive income (loss), net of tax | (226) | (189) | (1) |
Total comprehensive income (loss), net of tax | 1,738 | 1,713 | 1,895 |
Comprehensive (income) loss attributable to noncontrolling interests | (4) | (8) | (6) |
Comprehensive income (loss) attributable to Celanese Corporation | $ 1,734 | $ 1,705 | $ 1,889 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Current Assets | |||
Cash and cash equivalents | $ 1,805 | $ 1,508 | |
Trade receivables - third party and affiliates | 1,243 | 1,379 | |
Non-trade receivables, net | 541 | 675 | |
Inventories | 2,357 | 2,808 | |
Other assets | 272 | 241 | |
Total current assets | 6,218 | 6,611 | |
Investments in affiliates | 1,220 | 1,062 | |
Property, plant and equipment (net of accumulated depreciation - 2023: $4,080; 2022: $3,687) | 5,584 | 5,584 | |
Operating lease right-of-use assets | 422 | 413 | |
Deferred income taxes | 1,677 | 808 | |
Other assets | 524 | 547 | |
Goodwill | 6,977 | [1] | 7,142 |
Intangible assets, net | 3,975 | 4,105 | |
Total assets | 26,597 | 26,272 | |
Current Liabilities | |||
Short-term borrowings and current installments of long-term debt - third party and affiliates | 1,383 | 1,306 | |
Trade payables - third party and affiliates | 1,510 | 1,518 | |
Other liabilities | 1,154 | 1,201 | |
Income taxes payable | 25 | 43 | |
Total current liabilities | 4,072 | 4,068 | |
Long-term debt, net of unamortized deferred financing costs | 12,301 | 13,373 | |
Deferred income taxes | 999 | 1,242 | |
Uncertain tax positions | 300 | 322 | |
Benefit obligations | 457 | 411 | |
Operating lease liabilities | 325 | 364 | |
Other liabilities | 591 | 387 | |
Commitments and Contingencies | |||
Shareholders' Equity | |||
Preferred stock, $0.01 par value, 100,000,000 shares authorized (2023 and 2022: 0 issued and outstanding) | 0 | 0 | |
Common stock, $0.0001 par value, 400,000,000 shares authorized (2023: 170,476,740 issued and 108,906,426 outstanding; 2022: 170,135,425 issued and 108,473,932 outstanding) | 0 | 0 | |
Treasury stock, at cost (2023: 61,570,314 shares; 2022: 61,661,493 shares) | (5,488) | (5,491) | |
Additional paid-in capital | 394 | 372 | |
Retained earnings | 12,929 | 11,274 | |
Accumulated other comprehensive income (loss), net | (744) | (518) | |
Total Celanese Corporation shareholders' equity | 7,091 | 5,637 | |
Noncontrolling interests | 461 | 468 | |
Total equity | 7,552 | 6,105 | |
Total liabilities and equity | $ 26,597 | $ 26,272 | |
[1] There were no accumulated impairment losses as of December 31, 2023. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation, depletion and amortization, property, plant, and equipment | $ 4,080 | $ 3,687 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 170,476,740 | 170,135,425 |
Common stock, shares outstanding (in shares) | 108,906,426 | 108,473,932 |
Treasury stock, shares (in shares) | 61,570,314 | 61,661,493 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Treasury Stock, Common | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net | Noncontrolling Interests |
Balance as of the beginning of the period (in shares) at Dec. 31, 2020 | 114,168,464 | 55,234,515 | |||||
Balance as of the beginning of the period at Dec. 31, 2020 | $ 0 | $ (4,494) | $ 257 | $ 8,091 | $ (328) | ||
Purchases of treasury stock (in shares) | 6,556,378 | 6,556,378 | (6,556,378) | ||||
Purchases of treasury stock | $ (1,000) | $ 0 | $ (1,000) | ||||
Stock awards (in shares) | 411,649 | ||||||
Stock awards | $ 0 | ||||||
Issuance of treasury stock under stock plans (in shares) | (54,604) | ||||||
Issuance of treasury stock under stock plans | $ 2 | ||||||
Balance as of the end of the period (in shares) at Dec. 31, 2021 | 108,023,735 | 61,736,289 | |||||
Balance as of the end of the period at Dec. 31, 2021 | 4,189 | $ 0 | $ (5,492) | 333 | 9,677 | (329) | |
Stock option exercises, shares | 0 | ||||||
Stock option exercises, net of tax | $ 0 | ||||||
Stock-based compensation, net of tax | 76 | ||||||
Net earnings (loss) attributable to Celanese Corporation | 1,890 | 1,890 | |||||
Common stock dividends | (304) | ||||||
Other comprehensive income (loss), net of tax | (1) | (1) | |||||
Balance as of the beginning of the period, noncontrolling interest at Dec. 31, 2020 | $ 369 | ||||||
Net earnings (loss) attributable to noncontrolling interests | (6) | (6) | |||||
Distributions/dividends to noncontrolling interests | 27 | ||||||
Acquisition of noncontrolling interests | 0 | ||||||
Balance as of the end of the period, noncontrolling interest at Dec. 31, 2021 | 348 | ||||||
Balance as of the end of the period at Dec. 31, 2021 | $ 4,537 | ||||||
Purchases of treasury stock (in shares) | 0 | 0 | 0 | ||||
Purchases of treasury stock | $ 0 | $ 0 | $ 0 | ||||
Stock awards (in shares) | 450,197 | ||||||
Stock awards | $ 0 | ||||||
Issuance of treasury stock under stock plans (in shares) | (74,796) | ||||||
Issuance of treasury stock under stock plans | $ 1 | ||||||
Balance as of the end of the period (in shares) at Dec. 31, 2022 | 108,473,932 | 61,661,493 | |||||
Balance as of the end of the period at Dec. 31, 2022 | 5,637 | $ 0 | $ (5,491) | 372 | 11,274 | (518) | |
Stock option exercises, shares | 0 | ||||||
Stock option exercises, net of tax | $ 0 | ||||||
Stock-based compensation, net of tax | 39 | ||||||
Net earnings (loss) attributable to Celanese Corporation | 1,894 | 1,894 | |||||
Common stock dividends | (297) | ||||||
Other comprehensive income (loss), net of tax | (189) | (189) | |||||
Net earnings (loss) attributable to noncontrolling interests | (8) | (8) | |||||
Distributions/dividends to noncontrolling interests | 13 | ||||||
Acquisition of noncontrolling interests | 125 | ||||||
Balance as of the end of the period, noncontrolling interest at Dec. 31, 2022 | 468 | 468 | |||||
Balance as of the end of the period at Dec. 31, 2022 | $ 6,105 | ||||||
Purchases of treasury stock (in shares) | 0 | 0 | 0 | ||||
Purchases of treasury stock | $ 0 | $ 0 | $ 0 | ||||
Stock awards (in shares) | 431,526 | ||||||
Stock awards | $ 0 | ||||||
Issuance of treasury stock under stock plans (in shares) | (91,179) | ||||||
Issuance of treasury stock under stock plans | $ 3 | ||||||
Balance as of the end of the period (in shares) at Dec. 31, 2023 | 108,906,426 | 61,570,314 | |||||
Balance as of the end of the period at Dec. 31, 2023 | 7,091 | $ 0 | $ (5,488) | 394 | 12,929 | (744) | |
Stock option exercises, shares | 968 | ||||||
Stock option exercises, net of tax | $ 0 | ||||||
Stock-based compensation, net of tax | $ 22 | ||||||
Net earnings (loss) attributable to Celanese Corporation | 1,960 | 1,960 | |||||
Common stock dividends | $ (305) | ||||||
Other comprehensive income (loss), net of tax | (226) | $ (226) | |||||
Net earnings (loss) attributable to noncontrolling interests | (4) | (4) | |||||
Distributions/dividends to noncontrolling interests | 11 | ||||||
Acquisition of noncontrolling interests | 0 | ||||||
Balance as of the end of the period, noncontrolling interest at Dec. 31, 2023 | 461 | $ 461 | |||||
Balance as of the end of the period at Dec. 31, 2023 | $ 7,552 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Cash Flows [Abstract] | |||
Net earnings (loss) | $ 1,964 | $ 1,902 | $ 1,896 |
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities | |||
Asset impairments | 15 | 14 | 2 |
Depreciation, amortization and accretion | 739 | 478 | 378 |
Pension and postretirement net periodic benefit cost | 13 | (85) | (136) |
Pension and postretirement contributions | (49) | (48) | (51) |
Actuarial (gain) loss on pension and postretirement plans | 66 | 81 | 41 |
Pension curtailments and settlements, net | 1 | 0 | 3 |
Deferred income taxes, net | (967) | (835) | 13 |
(Gain) loss on disposition of businesses and assets, net | (501) | (8) | (5) |
Stock-based compensation | 40 | 60 | 95 |
Undistributed earnings in unconsolidated affiliates | 55 | (3) | (34) |
Other, net | 9 | 11 | 28 |
Operating cash provided by (used in) discontinued operations | (2) | (28) | 15 |
Changes in operating assets and liabilities | |||
Trade receivables - third party and affiliates, net | 105 | 218 | (396) |
Inventories | 398 | (253) | (367) |
Other assets | 277 | (13) | (80) |
Trade payables - third party and affiliates | 20 | (84) | 353 |
Other liabilities | (284) | 412 | 2 |
Net cash provided by (used in) operating activities | 1,899 | 1,819 | 1,757 |
Investing Activities | |||
Capital expenditures on property, plant and equipment | (568) | (543) | (467) |
Acquisitions, net of cash acquired | 52 | (10,589) | (1,142) |
Proceeds from sale of businesses and assets, net | 480 | 48 | 27 |
Proceeds from sale of marketable securities | 0 | 0 | 516 |
Other, net | (98) | (57) | (53) |
Net cash provided by (used in) investing activities | (134) | (11,141) | (1,119) |
Financing Activities | |||
Net change in short-term borrowings with maturities of 3 months or less | (278) | 36 | 206 |
Proceeds from short-term borrowings | 452 | 500 | 0 |
Repayments of short-term borrowings | (603) | 0 | (6) |
Proceeds from long-term debt | 3,001 | 10,769 | 990 |
Repayments of long-term debt | (3,660) | (526) | (786) |
Purchases of treasury stock, including related fees | 0 | (17) | (1,000) |
Common stock dividends | (305) | (297) | (304) |
Distributions/dividends to noncontrolling interests | (11) | (13) | (27) |
Settlement of forward-starting interest rate swaps | 0 | 0 | (72) |
Issuance cost of bridge facility | 0 | (63) | 0 |
Other, net | (52) | (99) | (43) |
Net cash provided by (used in) financing activities | (1,456) | 10,290 | (1,042) |
Exchange rate effects on cash and cash equivalents | (12) | 4 | (15) |
Net increase (decrease) in cash and cash equivalents | 297 | 972 | (419) |
Cash and cash equivalents as of beginning of period | 1,508 | 536 | 955 |
Cash and cash equivalents as of end of period | $ 1,805 | $ 1,508 | $ 536 |
Description of the Company and
Description of the Company and Basis of Presentation | 12 Months Ended |
Dec. 31, 2023 | |
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 chemical and specialty materials company. The Company produces high performance engineered polymers that are used in a variety of high-value applications, as well as acetyl products, which are intermediate chemicals for nearly all major industries. The Company also engineers and manufactures a wide variety of products essential to everyday living. The Company's broad product portfolio serves a diverse set of end-use applications including automotive, chemical additives, construction, consumer and industrial adhesives, medical, consumer electronics, energy storage, filtration, paints and coatings, paper and packaging, industrial applications and textiles. 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 U.S." 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 ("U.S. 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 shareholders' interests are shown as noncontrolling interests. |
Summary of Accounting Policies
Summary of Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Accounting Policies | Summary of Accounting Policies Critical Accounting Policies Purchase Accounting The Company recognizes the identifiable tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The excess of purchase price over the aggregate fair values is recorded as goodwill. Intangible assets are valued using the relief from royalty, multi-period excess earnings 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 method include discount rates, royalty rates, growth rates, sales projections and terminal value rates. Key assumptions used in the multi-period excess earnings method include discount rates, retention rates, growth rates, sales projections, expense projections and contributory asset charges. Key assumptions used in the discounted cash flow valuation model include discount rates, growth rates, tax rates, cash flow projections and terminal value rates. All of these methodologies require significant management judgment and, therefore, are susceptible to change. The Company calculates the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed to allocate the purchase price at the acquisition date. The Company may use the assistance of third-party valuation consultants. Recoverability of Goodwill and Indefinite-Lived Assets The Company assesses the recoverability of the carrying amount of its reporting unit goodwill and other 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. Recoverability of the carrying amount of goodwill is measured at the reporting unit level. 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 in Other (charges) gains, net in the consolidated statements of operations. When assessing the recoverability of goodwill and other indefinite-lived intangible assets, the Company may first assess qualitative factors in determining whether it is more likely than not that the fair value of a reporting unit, including goodwill, or another indefinite-lived intangible asset is less than its carrying amount. The qualitative evaluation is an assessment of multiple factors, including the current operating environment, financial performance and market considerations. The Company may elect to bypass this qualitative assessment for some or all of its reporting units or other indefinite-lived intangible assets and perform a quantitative test, based on management's judgment. In performing a quantitative analysis of goodwill, 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. Management tests other 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. 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 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. The Company engages third-party consultants to assist with this process. In the U.S., 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. Outside of the U.S., a similar approach of discounting pension and other postretirement benefit plan liabilities is used based on the high quality corporate bonds available in each market. There are some exceptions to this methodology, namely in locations where there is a sparse corporate bond market, and in such cases the discount rate takes into account yields of government bonds at the appropriate duration. • 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. • Investment Policies and Strategies The investment objectives for the Company's pension plans are to earn, over a moving 20-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 U.S. and global equity and fixed income markets, and to manage the risks and returns of the plans through the use of multiple managers and strategies. The fixed income strategies are designed to reduce liability-related interest rate risk by investing in bonds that match the duration and credit quality of the plan liabilities. 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 approximately 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. 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, remaining carryforward periods, 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 and technical authorities in the relevant jurisdiction. The Company recognizes interest and penalties related to uncertain tax positions in Income tax (provision) benefit in the consolidated statements of operations. Other Accounting Policies Consolidation Principles The consolidated financial statements have been prepared in accordance with U.S. 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 U.S. 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. Variable Interest Entities The Company assesses whether it has a variable interest in legal entities in which it has a financial relationship and, if so, whether or not those entities are variable interest entities ("VIEs"). A VIE is an entity with insufficient equity at risk for the entity to finance its activities without additional subordinated financial support or in which equity investors lack the characteristics of a controlling financial interest. If an entity is determined to be a VIE, the Company evaluates whether it is the primary beneficiary. The primary beneficiary analysis is a qualitative analysis based on power and economics. The Company concludes that it is the primary beneficiary and consolidates the VIE if the Company has both (i) the power to direct the activities of the VIE that most significantly influence the VIE's economic performance, and (ii) the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE. The Company has a joint venture, Fairway Methanol LLC ("Fairway"), with Mitsui & Co., Ltd., of Tokyo, Japan ("Mitsui"), in which the Company owns 50% of Fairway, for the production of methanol at the Company's integrated chemical plant in Clear Lake, Texas. Fairway is a VIE in which the Company is the primary beneficiary. 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 Chain segment. As of December 31, 2023 and 2022, the carrying amount of the total assets associated with Fairway included in the consolidated balance sheets were $626 million and $627 million, respectively, made up primarily of $529 million and $544 million, respectively, of property, plant and equipment. 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 finance 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, 2023 and 2022 were $208 million and $223 million, respectively, related primarily to the recovery of capital expenditures for certain property, plant and equipment. 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 pooled-type investments and registered investment companies, 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 Cash and Cash Equivalents All highly liquid investments with original maturities of three months or less are considered cash equivalents. Inventories Inventories, including stores and supplies, are stated at the lower of cost and net realizable value. Cost for inventories is determined using the first-in, first-out 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 Affiliates Investments in equity securities 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 in equity securities where the Company does not exercise significant influence are accounted for at fair value or, if such investments do not have a readily determinable fair value, an election may be made to measure them at cost after considering observable price changes for similar instruments, minus impairment, if any. 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 U.S. GAAP. Further, these investments were determined not to have a readily determinable fair value. Accordingly, these investments are accounted for using the alternative measure described above. 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 finance 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, tax 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 in Other (charges) gains, net in the consolidated statements of operations. 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 six 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 derivative instruments other than foreign currency forwards and swaps is recorded as an asset or liability on a net basis at the balance sheet date. • Interest Rate Risk Management The Company entered into a forward-starting interest rate swap to mitigate the risk of variability in the benchmark interest rate for debt issued in 2021. The interest rate swap agreement was designated as a cash flow hedge. Accordingly, to the extent the cash flow hedges were effective, changes in the fair value of the interest rate swap were included in gain (loss) from cash flow hedges within Accumulated other comprehensive income (loss), net in the consolidated balance sheets. • 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 generally 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. The Company entered into cross-currency swaps to synthetically convert certain USD borrowings to EUR borrowings in 2019 and 2022. The cross-currency swap agreements are designated as a net investment hedge. Accordingly, to the extent the net investment hedges are effective, changes in the fair value of the cross-currency swap are 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. The Company entered into cross-currency swaps to effectively convert certain USD borrowings to JPY and EUR borrowings in 2023. The cross-currency swap agreements were designated as fair value hedges. Accordingly, to the extent the fair value hedges are effective, changes in the fair value attributable to changes in the excluded components are included in gain (loss) from fair value hedges within Accumulated other comprehensive income (loss), net in the consolidated balance sheets. The value of the excluded components is recognized in earnings using a systematic and rational method by accruing the current-period swap settlements into earnings each reporting period. • 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. The Company also uses commodity swaps to hedge the risk of fluctuating price changes in certain raw materials and in which physical settlement does not occur. These commodity swaps fix the variable fee component of the price of certain commodities. All or a portion of these commodity swap agreements may be designated as cash flow hedges. Accordingly, to the extent the cash flow hedges are effective, changes in the fair value of commodity swaps are included in gain (loss) from cash flow hedges within Accumulated other comprehensive income (loss), net in the consolidated balance sheets. Gains and losses are reclassified to earnings in the period that the hedged item affects earnings. 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 flow |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The following table provides a brief description of recent Accounting Standard Updates ("ASU") issued by the Financial Accounting Standards Board ("FASB"): Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. The new guidance requires an entity to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. Additionally, the guidance requires an entity to disclose annual income taxes paid (net of refunds received) disaggregated by federal (national), state and foreign taxes and disaggregate the information by jurisdiction based on a quantitative threshold. The guidance also requires an entity to disclose income (loss) from continuing operations before income tax expense (benefit) disaggregated between domestic and foreign and income tax expense (benefit) from continuing operations disaggregated by federal (national), state and foreign. Effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of the adoption on its financial statement disclosures. In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures. The new guidance requires an entity to disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within segment profit or loss, as well as an amount of other segment items by reportable segment and a description of its composition. Additionally, the guidance requires an entity to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The update is required to be applied retrospectively to prior periods presented, based on the significant segment expense categories identified and disclosed in the period of adoption. Effective for annual periods beginning after December 15, 2023, and for interim periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of the adoption on its financial statement disclosures. |
Acquisitions, Dispositions and
Acquisitions, Dispositions and Plant Closures | 12 Months Ended |
Dec. 31, 2023 | |
Acquisitions, Dispositions and Plant Closures [Abstract] | |
Acquisitions, Dispositions and Plant Closures | Acquisitions, Dispositions and Plant Closures Acquisitions • Santoprene In December 2021, the Company acquired the Santoprene™ thermoplastic vulcanizates ("TPV") elastomers business of Exxon Mobil Corporation ("Santoprene") for a purchase price of $1.15 billion in an all-cash transaction. The Company acquired the Santoprene™, Dytron™ and Geolast™ trademarks and product portfolios, customer and supplier contracts and agreements, both production facilities producing TPV, the TPV intellectual property portfolio with associated technical and R&D assets and employees of the TPV elastomer business. The acquisition of Santoprene substantially strengthens the Company's existing elastomers portfolio, allowing the Company to bring a wider range of functionalized solutions into targeted growth areas including future mobility, medical and sustainability. The acquisition was accounted for as a business combination and the acquired operations are included in the Engineered Materials segment. The Company allocated the purchase price of the acquisition to identifiable assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The purchase price allocation was based upon preliminary information. During the measurement period, there were no adjustments that materially impacted the Company's goodwill initially recorded. • Mobility & Materials In November 2022, the Company acquired 100% ownership of entities and assets consisting of a majority of the Mobility & Materials business ("M&M") of DuPont de Nemours, Inc. ("DuPont") (the "M&M Acquisition") for a purchase price of $11.0 billion, subject to transaction adjustments, in an all-cash transaction. The Company acquired a global production network of 29 facilities, including compounding and polymerization, customer and supplier contracts and agreements, an intellectual property portfolio, including approximately 850 patents with associated technical and R&D assets, and approximately 5,000 employees across the manufacturing, technical, and commercial organizations. This acquisition of M&M enhances the engineered materials product portfolio by adding new polymers, brands, product technology, and backward integration in critical polymers, allowing the Company to accelerate growth in high-value applications including future mobility, connectivity and medical. The acquisition was accounted for as a business combination and the acquired operations are included in the Engineered Materials segment. The Company allocated the purchase price of the acquisition to identifiable assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The excess of the purchase price over the aggregate fair values was recorded as goodwill. During the measurement period, there were no adjustments that materially impacted the Company's goodwill initially recorded. The following unaudited pro forma financial information presents the consolidated results of operations as if the M&M Acquisition had occurred at the beginning of 2021. M&M's pre-acquisition results have been added to the Company's historical results. The pro forma results contained in the table below include adjustments for (i) increased depreciation expense as a result of acquisition date fair value adjustments, (ii) amortization of acquired intangibles, (iii) interest expense and amortization of debt issuance costs of $366 million and $674 million related to borrowings under the U.S. Term Loan Facility (defined below) and the issuance of Acquisition Notes (defined below) as if these had taken place at the beginning of 2021 for the years ended December 31, 2022 and 2021, respectively and (iv) net total inventory step up of inventory amortized to Cost of sales of $66 million for the years ended December 31, 2022 and 2021. These pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results of operations as they would have been had the acquisition occurred on the assumed date, nor are they necessarily an indication of future operating results. Year Ended 2022 2021 (In $ millions) Unaudited Consolidated Pro Forma Results Proforma Net sales 12,614 12,069 Proforma Earnings (loss) from continuing operations before tax 888 1,843 The amount of M&M Net sales and Earnings (loss) from continuing operations before tax consolidated by the Company since the acquisition date through December 31, 2022 were $430 million and $(80) million, respectively. During the year ended December 31, 2022, transaction related costs of $117 million were expensed as incurred to Selling, general and administrative expenses in the consolidated statements of operations. • Nutrinova Joint Venture On September 27, 2023, the Company formed a food ingredients joint venture with Mitsui under the name Nutrinova. The Company contributed receivables, inventory, property, plant and equipment, certain other assets, liabilities, technology and employees of its food ingredients business while retaining a 30% interest in the joint venture. Mitsui acquired the remaining 70% interest in the food ingredients business for a purchase price of $503 million, subject to transaction adjustments. The Company accounted for its interest in the joint venture as an equity method investment, and its portion of the results will continue to be included in the Engineered Materials segment. A gain on the transaction of $515 million is included in Gain (loss) on disposition of businesses and assets, net in the consolidated statements of operations for the year ended December 31, 2023. • Korea Engineering Plastics Co. Restructuring In April 2022, the Company completed the restructuring of Korea Engineering Plastics Co. ("KEPCO"), a joint venture owned 50% by the Company and 50% by Mitsubishi Gas Chemical Company, Inc. KEPCO was first formed in 1987 to manufacture and market polyoxymethylene ("POM") in Asia, with a particular focus on serving domestic demand in South Korea. KEPCO will now focus solely on manufacturing and supplying high quality products to its shareholders, who will independently market them globally. As part of the restructuring of KEPCO, the Company paid KEPCO $5 million and will have paid 5 equal annual installments of €24 million on October 1 of each year from 2022 to 2026. This resulted in an increase to the Company's investment in KEPCO of $134 million. The Company's joint venture partner has made and will make similar payments to KEPCO. The restructuring did not result in a change in ownership percentage of KEPCO, nor a change in control, and KEPCO will continue to be accounted for as an equity method investment. Plant Closures • Uentrop, Germany On October 31, 2023, the Company announced the planned closure of its Polyamide 66 ("PA66") and High-Performance Nylon ("HPN") polymerization units at its facility in Uentrop, Germany to optimize production costs across its global network. These operations are included in the Company's Engineered Materials segment. The Company expects to complete the closure in 2024. The exit and shutdown costs related to the closure of the PA66 and HPN polymerization units in Uentrop, Germany were as follows: Year Ended December 31, 2023 (In $ millions) Accelerated depreciation expense 14 Loss on disposition of assets, net 4 Total 18 The Company expects to incur additional exit and shutdown costs related to the closure of the PA66 and HPN polymerization units in Uentrop, Germany of approximately $70 million in 2024, inclusive of estimated employee termination costs. |
Receivables, Net
Receivables, Net | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Receivables, Net | Receivables, Net As of December 31, 2023 2022 (In $ millions) Trade receivables - third party and affiliates 1,255 1,394 Allowance for doubtful accounts - third party and affiliates (12) (15) Trade receivables - third party and affiliates, net 1,243 1,379 As of December 31, 2023 2022 (In $ millions) Non-income taxes receivable 270 334 Income taxes receivable 57 26 Other (1) 214 315 Non-trade receivables, net 541 675 ____________________________ (1) Includes $42 million and $193 million of non-trade receivables related to the M&M Acquisition as of December 31, 2023 and December 31, 2022, respectively. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories As of December 31, 2023 2022 (In $ millions) Finished goods 1,604 1,820 Work-in-process 160 202 Raw materials and supplies 593 786 Total 2,357 2,808 |
Investments in Affiliates
Investments in Affiliates | 12 Months Ended |
Dec. 31, 2023 | |
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 equity method of accounting or equity investments without readily determinable fair values are considered affiliates; any transactions or balances with such companies are considered affiliate transactions. Equity Method On September 27, 2023, the Company formed a food ingredients joint venture with Mitsui under the name Nutrinova. The Company accounted for its interest in the joint venture as an equity method investment. See Note 4 for additional information. As a part of the M&M Acquisition, the Company acquired certain equity method investments and ownership interests. The Company has ownership interests in 14 equity method investments ranging from 22% to 50% at December 31, 2023. Equity method investments by business segment are as follows: Carrying Share of Dividends and 2023 2022 2023 2022 2021 2023 2022 2021 (In $ millions) Engineered Materials (1) 898 760 88 209 133 (145) (204) (98) Other Activities 56 53 14 11 13 (12) (13) (14) Total 954 813 102 220 146 (157) (217) (112) ____________________________ (1) Engineered Materials includes an equity method investment with losses in excess of its carrying amount due to the Company's guarantee of various debt obligations under agreements with third parties related to an equity affiliate ( Note 19 ). This equity method investment was recorded in Current Other liabilities ( Note 10 ) as of December 31, 2023 and December 31, 2022. Equity Investments Without Readily Determinable Fair Values The Company has ownership interests in 4 equity investments without readily determinable fair values ranging from 8% to 31% at December 31, 2023. Equity investments without readily determinable fair values by business segment are as follows: Carrying Dividend 2023 2022 2023 2022 2021 (In $ millions) Acetyl Chain 165 165 125 132 146 Other Activities 5 5 1 1 1 Total 170 170 126 133 147 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 at cost less impairment, adjusted for observable price changes for an identical or similar investment of the same issuer. 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, 2023 2022 2021 (In $ millions) Purchases 490 590 334 Sales and other credits 212 72 74 As of December 31, 2023 2022 (In $ millions) Trade receivables 7 8 Non-trade receivables 40 36 Current notes receivables 57 — Total due from affiliates 104 44 Short-term borrowings (1) 23 — Trade payables 52 36 Current Other liabilities 34 37 Total due to affiliates 109 73 ______________________________ (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, 2023 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net As of December 31, 2023 2022 (In $ millions) Land 260 291 Land improvements 85 83 Buildings and building improvements 1,082 1,062 Machinery and equipment 7,157 6,897 Construction in progress 1,080 938 Gross asset value 9,664 9,271 Accumulated depreciation (4,080) (3,687) Net book value 5,584 5,584 Assets under finance leases, net, included in the amounts above were $154 million and $176 million as of December 31, 2023 and 2022, respectively. Capitalized interest costs and depreciation expense are as follows: Year Ended December 31, 2023 2022 2021 (In $ millions) Capitalized interest 37 18 12 Depreciation expense 540 399 346 During 2023, 2022 and 2021, certain long-lived assets were impaired ( Note 24 ). |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Goodwill Engineered Acetyl Total (In $ millions) As of December 31, 2021 1,030 382 1,412 Acquisitions ( Note 4 ) 5,781 — 5,781 Exchange rate changes (36) (15) (51) As of December 31, 2022 6,775 367 7,142 Acquisitions ( Note 4 ) (107) — (107) Dispositions (1) (80) — (80) Exchange rate changes 14 8 22 As of December 31, 2023 (2) 6,602 375 6,977 ______________________________ (1) Related to the formation of the Nutrinova joint venture ( Note 4 ). (2) There were no accumulated impairment losses as of December 31, 2023. In connection with the Company's annual goodwill impairment assessment, the Company did not record an impairment loss to goodwill during the nine months ended September 30, 2023, 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, 2023 that indicated 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- Developed Covenants Total (In $ millions) Gross Asset Value As of December 31, 2021 45 996 45 55 1,141 Acquisitions (1) — 1,509 550 — 2,059 Disposition — (2) — — (2) Accumulated impairment losses — (4) — — (4) Exchange rate changes (3) (44) 6 — (41) As of December 31, 2022 42 2,455 601 55 3,153 Disposition (2) — (60) (1) — (61) Exchange rate changes (1) 42 1 — 42 As of December 31, 2023 41 2,437 601 55 3,134 Accumulated Amortization As of December 31, 2021 (41) (543) (42) (39) (665) Amortization (1) (51) (9) (1) (62) Disposition — 2 — — 2 Accumulated impairment losses — 2 — — 2 Exchange rate changes 3 23 1 — 27 As of December 31, 2022 (39) (567) (50) (40) (696) Amortization — (120) (43) (1) (164) Disposition (2) — 59 1 — 60 Exchange rate changes 1 (11) (3) (1) (14) As of December 31, 2023 (38) (639) (95) (42) (814) Net book value 3 1,798 506 13 2,320 ______________________________ (1) Primarily related to $1.5 billion of customer-related intangible assets and $550 million of developed technology acquired as part of the M&M Acquisition with weighted average amortization periods of 20 years and 13 years, respectively, and 18 years in total ( Note 4 ). (2) Primarily related to the formation of the Nutrinova joint venture ( Note 4 ). Indefinite-lived intangible assets are as follows: Trademarks (In $ millions) As of December 31, 2021 259 Acquisitions ( Note 4 ) 1,400 Exchange rate changes (11) As of December 31, 2022 1,648 Dispositions (1) (14) Exchange rate changes 21 As of December 31, 2023 1,655 ______________________________ (1) Related to the formation of the Nutrinova joint venture ( Note 4 ). In connection with the Company's annual indefinite-lived intangible assets impairment assessment, the Company did not record an impairment loss during the nine months ended September 30, 2023, as the estimated fair value for each of the Company's indefinite-lived intangible assets exceeded the carrying value of the underlying asset by a substantial margin ( Note 2 ). No events or changes in circumstances occurred during the three months ended December 31, 2023 that indicated the carrying amount of the assets may not be fully recoverable. Accordingly, no additional impairment analysis was performed during that period. During the year ended December 31, 2023, the Company did not renew or extend any intangible assets. Estimated amortization expense for the succeeding five fiscal years is as follows: (In $ millions) 2024 161 2025 161 2026 160 2027 160 2028 160 |
Current Other Liabilities
Current Other Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities, Current [Abstract] | |
Current Other Liabilities | Current Other Liabilities As of December 31, 2023 2022 (In $ millions) Benefit obligations ( Note 12 ) 25 25 Customer rebates 96 101 Derivatives ( Note 17 ) 90 63 Interest ( Note 11 ) 246 265 Legal ( Note 19 ) 34 21 Operating leases ( Note 16 ) 89 83 Restructuring ( Note 24 ) 18 6 Salaries and benefits 175 151 Sales and use tax/foreign withholding tax payable 128 108 Investment in affiliates ( Note 7 ) 96 79 Other (1) 157 299 Total 1,154 1,201 ____________________________ (1) Includes $18 million and $166 million payable to DuPont related to the M&M Acquisition and transition activities as of December 31, 2023 and December 31, 2022, respectively. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of December 31, 2023 2022 (In $ millions) Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates Current installments of long-term debt 1,025 506 Short-term borrowings, including amounts due to affiliates (1) 146 500 Revolving credit facility (2) 212 300 Total 1,383 1,306 ______________________________ (1) The weighted average interest rate was 2.9% and 5.8% as of December 31, 2023 and 2022, respectively. (2) The weighted average interest rate was 3.4% and 5.8% as of December 31, 2023 and 2022, respectively. As of December 31, 2023 2022 (In $ millions) Long-Term Debt Senior unsecured notes due 2023, interest rate of 1.125% — 480 Senior unsecured notes due 2024, interest rate of 3.500% 473 499 Senior unsecured notes due 2024, interest rate of 5.900% 527 2,000 Senior unsecured notes due 2025, interest rate of 1.250% 331 320 Senior unsecured notes due 2025, interest rate of 6.050% 1,000 1,750 Senior unsecured term loan due 2025 (1) — 750 Senior unsecured notes due 2026, interest rate of 1.400% 400 400 Senior unsecured notes due 2026, interest rate of 4.777% 1,105 1,067 Senior unsecured notes due 2027, interest rate of 2.125% 551 531 Senior unsecured notes due 2027, interest rate of 6.165% 2,000 2,000 Senior unsecured term loan due 2027 (1) 880 1,000 Senior unsecured notes due 2028, interest rate of 0.625% 552 533 Senior unsecured notes due 2028, interest rate of 6.350% 1,000 — Senior unsecured notes due 2029, interest rate of 5.337% 552 533 Senior unsecured notes due 2029, interest rate of 6.330% 750 750 Senior unsecured notes due 2030, interest rate of 6.550% 999 — Senior unsecured notes due 2032, interest rate of 6.379% 1,000 1,000 Senior unsecured notes due 2033, interest rate of 6.700% 1,000 — Pollution control and industrial revenue bonds due at various dates through 2030 (2) 127 164 Bank loans due at various dates through 2030 (3) 5 4 Obligations under finance leases due at various dates through 2054 148 172 Subtotal 13,400 13,953 Unamortized deferred financing costs (4) (74) (74) Current installments of long-term debt (1,025) (506) Total 12,301 13,373 ______________________________ (1) The interest rate was 6.943% and 5.934% as of December 31, 2023 and 2022, respectively. (2) Interest rates range from 4.05% to 5.00%. (3) The weighted average interest rate was 2.6% and 1.3% as of December 31, 2023 and 2022, respectively. (4) Related to the Company's long-term debt, excluding obligations under finance leases. Senior Credit Facilities In connection with the M&M Acquisition, in February 2022, the Company entered into a bridge facility commitment letter with Bank of America, N.A. ("Bank of America") pursuant to which Bank of America committed to provide, subject to the terms and conditions set forth therein, a 364-day $11.0 billion senior unsecured bridge term loan facility (the "Bridge Facility"). Subsequently, commitments in respect of the Bridge Facility were syndicated to additional financial institutions as contemplated thereby. In March 2022, Celanese, Celanese U.S. and certain subsidiaries entered into a term loan credit agreement (the "March 2022 U.S. Term Loan Credit Agreement"), pursuant to which lenders provided a tranche of delayed-draw term loans due 364 days from issuance in an amount equal to $500 million (the "364-day Term Loans") and a tranche of delayed-draw term loans due 5 years from issuance in an amount equal to $1.0 billion (the "5-year Term Loans"). In September 2022, Celanese, Celanese U.S. and certain subsidiaries entered into an additional term loan credit agreement (the "September 2022 U.S. Term Loan Credit Agreement" and, together with the March 2022 U.S. Term Loan Credit Agreement, the "U.S. Term Loan Credit Agreements"), pursuant to which lenders provided delayed-draw term loans due 3 years from issuance in an amount equal to $750 million (the "3-year Term Loans" and collectively with the 364-day Term Loans and the 5-year Term Loans, the "U.S. Term Loan Facility"). The U.S. Term Loan Facility was fully drawn during the three months ended December 31, 2022. Amounts outstanding under the 5-year Term Loans of the U.S. Term Loan Facility will accrue interest at a rate equal to Secured Overnight Financing Rate with an interest period of one or three months ("Term SOFR") plus a margin of 1.125% to 2.125% per annum, or the base rate plus a margin of 0.125% to 1.125%, in each case, based on the Company's senior unsecured debt rating. The 364-day Term Loans and 3-year Term Loans have been fully repaid. The entry into the U.S. Term Loan Credit Agreements and offerings of USD- and euro-denominated notes (as described below) reduced availability under the Bridge Facility to zero and the Company terminated the Bridge Facility. Also in March 2022, Celanese, Celanese U.S. and certain subsidiaries entered into a new revolving credit agreement (the "U.S. Revolving Credit Agreement" and, together with the March 2022 U.S. Term Loan Credit Agreement, the "U.S. Credit Agreements") consisting of a $1.75 billion senior unsecured revolving credit facility (with a letter of credit sublimit), maturing in 2027 (the "U.S. Revolving Credit Facility"). The margin for borrowings under the U.S. Revolving Credit Facility was 1.00% to 2.00% above certain interbank rates at current Company credit ratings. The proceeds of a $365 million borrowing under the new senior unsecured revolving credit facility were used to repay and terminate the Company's existing revolving credit facility. During the year ended December 31, 2022, the Company paid $66 million in fees related to the Bridge Facility commitment, amortizing these fees to interest expense in the year ended December 31, 2022. On February 21, 2023 and February 16, 2024, the Company amended certain covenants in the U.S. Credit Agreements, including financial ratio maintenance covenants. On August 9, 2023, the Company amended certain covenants in the March 2022 U.S. Term Loan Credit Agreement to permit refinancing certain senior notes without requiring a mandatory prepayment under the March 2022 U.S. Term Loan Credit Agreement. The March 2022 U.S. Term Loan Credit Agreement and the U.S. Revolving Credit Agreement are, and the September 2022 U.S. Term Loan Credit Agreement was, guaranteed by Celanese, Celanese U.S. and domestic subsidiaries together representing substantially all of the Company's U.S. assets and business operations (the "Subsidiary Guarantors"). The Subsidiary Guarantors are listed in Exhibit 22.1 to this Annual Report. On January 4, 2023, Celanese (Shanghai) International Trading Co., Ltd ("CSIT"), a fully consolidated subsidiary, entered into a restatement of an existing credit facility agreement (the "China Revolving Credit Agreement") to upsize and modify the facility thereunder to consist of an aggregate CNY1.75 billion uncommitted senior unsecured revolving credit facility available under two tranches (with overdraft, bank guarantee and documentary credit sublimits) (the "China Revolving Credit Facility"). Obligations bear interest at certain fixed and floating rates. The China Revolving Credit Agreement is guaranteed by Celanese U.S. On January 6, 2023, CSIT entered into a senior unsecured working capital loan contract for CNY800 million (the "China Working Capital Term Loan Agreement," together with the China Revolving Credit Agreement, the "China Credit Agreements," and the China Credit Agreements together with the U.S. Credit Agreements, the "Global Credit Agreements"), payable 12 months from withdrawal date and bearing interest at 0.5% less than certain interbank rates. The loan under the China Working Capital Term Loan Agreement was fully drawn on January 10, 2023 and was supported by a letter of comfort from the Company. The Company expects that the China Credit Agreements will facilitate its efficient repatriation of cash to the U.S. to repay debt and effectively redomicile a portion of its U.S. debt to China at a lower average interest rate. The Company's debt balances and amounts available for borrowing under its senior unsecured revolving credit facilities are as follows: As of (In $ millions) Revolving Credit Facility Borrowings outstanding — Available for borrowing 1,750 China Revolving Credit Facility Borrowings outstanding 212 Available for borrowing 34 Senior Notes The Company has outstanding senior unsecured notes, issued in public offerings registered under the Securities Act of 1933, as amended (the "Securities Act") (collectively, the "Senior Notes"). The Senior Notes were issued by Celanese U.S. and are guaranteed on a senior unsecured basis by Celanese and the Subsidiary Guarantors. Celanese U.S. 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 July 2022, Celanese U.S. completed a public offering of senior unsecured notes registered under the Securities Act as follows (collectively, the "Acquisition Notes"): Maturity Date Aggregate Principal Discount to Par Interest Rate (In millions) July 5, 2024 $ 2,000 99.987% 5.900% March 15, 2025 $ 1,750 99.993% 6.050% July 19, 2026 € 1,000 100.000% 4.777% July 15, 2027 $ 2,000 100.000% 6.165% January 19, 2029 € 500 99.996% 5.337% July 15, 2029 $ 750 100.000% 6.330% July 15, 2032 $ 1,000 100.000% 6.379% Fees and expenses related to the offering of the Acquisition Notes, including underwriting discounts, were $65 million for the year ended December 31, 2022 and are being amortized to Interest expense in the consolidated statements of operations over the terms of the applicable notes. On August 24, 2023, Celanese U.S. completed a public offering of senior unsecured notes registered under the Securities Act as follows (collectively, the "2023 Offering"): Maturity Date Aggregate Principal Discount to Par Interest Rate (In $ millions) November 15, 2028 1,000 99.986% 6.350% November 15, 2030 999 99.950% 6.550% November 15, 2033 1,000 99.992% 6.700% Fees and expenses related to the 2023 Offering, including underwriting discounts, were $26 million for the year ended December 31, 2023 and are being amortized to Interest expense in the consolidated statements of operations over the terms of the applicable notes. On August 25, 2023, Celanese U.S. completed a cash tender offer for $2.25 billion in aggregate principal amount (the "Tender Offer") as follows: Maturity Date Aggregate Principal Amount Tendered Purchase price per $1,000 principal amount Total Tender Offer Consideration Accrued and Unpaid Interest (In $ millions) (In $ millions) June 30, 2024 1,473 $ 999.92 1,473 12 March 15, 2025 750 $ 1,002.85 752 20 April 30, 2024 27 $ 983.95 27 — The net proceeds from the 2023 Offering were used (i) to fund the Tender Offer and (ii) for the repayment of other outstanding indebtedness, including the payment in full of the 364-day Term Loans and the 3-year Term Loans. Principal payments scheduled to be made on the Company's debt, including short-term borrowings, are as follows: (In $ millions) 2024 1,383 2025 1,395 2026 1,527 2027 3,449 2028 1,567 Thereafter 4,437 Total 13,758 Accounts Receivable Purchasing Facility On June 1, 2023, the Company entered into an amendment to the amended and restated receivables purchase agreement (the "Amended Receivables Purchase Agreement") under its U.S. accounts receivable purchasing facility among certain of the Company's subsidiaries, its wholly-owned, "bankruptcy remote" special purpose subsidiary ("SPE") and certain global financial institutions ("Purchasers"). The Amended Receivables Purchase Agreement extends the term of the accounts receivable purchasing facility such that the SPE may sell certain receivables until June 18, 2025. Under the Amended Receivables Purchase Agreement, transfers of U.S. accounts receivable from the SPE are treated as sales and are accounted for as a reduction in accounts receivable because the agreement transfers effective control over and risk related to the U.S. accounts receivable to the SPE. The Company and related subsidiaries have no continuing involvement in the transferred U.S. accounts receivable, other than collection and administrative responsibilities and, once sold, the U.S. accounts receivable are no longer available to satisfy creditors of the Company or the related subsidiaries. These sales are transacted at 100% of the face value of the relevant U.S. accounts receivable, resulting in derecognition of the U.S. accounts receivables from the Company's consolidated balance sheet. The Company de-recognized $1.4 billion and $1.1 billion of accounts receivable under this agreement for the years ended December 31, 2023 and 2022, respectively, and collected $1.3 billion and $1.1 billion of accounts receivable sold under this agreement during the same periods. Unsold U.S. accounts receivable of $109 million were pledged by the SPE as collateral to the Purchasers as of December 31, 2023. Factoring and Discounting Agreements The Company has factoring agreements in Europe and Singapore with financial institutions to sell 100% and 90% of certain accounts receivable, respectively, on a non-recourse basis. These transactions are treated as sales and are accounted for as reductions in accounts receivable because the agreements transfer effective control over and risk related to the receivables to the buyer. The Company has no continuing involvement in the transferred receivables, other than collection and administrative responsibilities and, once sold, the accounts receivable are no longer available to satisfy creditors in the event of bankruptcy. The Company de-recognized $423 million and $320 million of accounts receivable under these factoring agreements for the years ended December 31, 2023 and 2022, respectively, and collected $407 million and $325 million of accounts receivable sold under these factoring agreements during the same periods. In March 2021, the Company entered into an agreement in Singapore with a financial institution to discount, on a non-recourse basis, documentary credits or other documents recorded as accounts receivable. These transactions are treated as a sale and are accounted for as a reduction in accounts receivable because the agreement transfers effective control over and risk related to the receivables to the buyer. The Company has no continuing involvement in the transferred receivables and, once sold, the accounts receivable are no longer available to satisfy creditors in the event of bankruptcy. The Company de-recognized $8 million and $50 million of accounts receivable under this agreement for the years ended December 31, 2023 and 2022, respectively. On December 15, 2023, the Company entered into a Master Discounting Agreement (the "Master Discounting Agreement") with a financial institution in China to discount, on a non-recourse basis, banker's acceptance drafts ("BADs"), classified as accounts receivable. Under the Master Discounting Agreement, the transfer of BADs are treated as sales and are accounted for as a reduction in accounts receivable because the Master Discounting Agreement transfers effective control over and risk related to the transferred BADs to the financial institution. The Company has no continuing involvement in the transferred BADs and the BADs are no longer available to satisfy creditors in the event of a bankruptcy. The Company received $45 million from the accounts receivable transferred under the Master Discounting Agreement as of December 31, 2023. The impacts of discounting are not material to the Company's results of operations, cash flows or financial position. Covenants The Company's material financing arrangements contain customary covenants, such as events of default and change of control provisions, and in the case of the existing U.S. Credit Agreements the maintenance of certain financial ratios (subject to adjustment following certain qualifying acquisitions and dispositions, as set forth in the existing U.S. Credit Agreements, as amended). 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. The Company is in compliance with the covenants in its material financing arrangements as of December 31, 2023. |
Benefit Obligations
Benefit Obligations | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [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 U.S. Benefits are dependent on years of service and the employee's compensation. Supplemental retirement benefits provided to certain employees are nonqualified for U.S. tax purposes. Separate nonqualified trusts have been established for certain U.S. nonqualified plan obligations. Pension costs under the Company's retirement plans are actuarially determined. 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 U.S. postretirement health care plan was closed to new participants effective January 1, 2006. 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. The amount of costs recognized for the Company's defined contribution plans are as follows: Year Ended December 31, 2023 2022 2021 (In $ millions) Defined contribution plans 83 62 47 Summarized information on the Company's pension and postretirement benefit plans is as follows: Pension Benefits Postretirement Benefits 2023 2022 2023 2022 (In $ millions) Change in Projected Benefit Obligation Projected benefit obligation as of beginning of period 2,858 3,488 38 51 Service cost 11 12 — 1 Interest cost 132 67 2 1 Net actuarial (gain) loss (1) 144 (662) 2 (10) Acquisitions (2) — 198 — — Divestiture (3) (4) — — — Settlements (16) — — — Benefits paid (226) (220) (3) (3) Exchange rate changes 24 (25) 1 (2) Projected benefit obligation as of end of period 2,923 2,858 40 38 Change in Plan Assets Fair value of plan assets as of beginning of period 2,625 3,183 — — Actual return on plan assets 213 (588) — — Employer contributions 46 45 3 3 Acquisitions (2) — 211 — — Divestiture (3) (2) — — — Settlements (16) — — — Benefits paid (4) (226) (220) (3) (3) Exchange rate changes 12 (6) — — Fair value of plan assets as of end of period 2,652 2,625 — — Funded status as of end of period (271) (233) (40) (38) Amounts Recognized in the Consolidated Balance Sheets Consist of: Noncurrent Other assets 166 160 — — Current Other liabilities (22) (21) (3) (3) Benefit obligations (415) (372) (37) (35) Net amount recognized (271) (233) (40) (38) Amounts Recognized in Accumulated Other Comprehensive Income Consist of: Net actuarial (gain) loss (5) 24 13 — — Prior service (benefit) cost — — (1) (1) Net amount recognized 24 13 (1) (1) ______________________________ (1) Primarily relates to changes in discount rates. (2) Represents plan obligations and assets related to the M&M Acquisition ( Note 4 ). (3) Represents plan obligations and assets contributed to the Nutrinova joint venture ( Note 4 ). (4) Includes benefit payments to nonqualified pension plans of $20 million and $20 million as of December 31, 2023 and 2022, respectively. (5) Relates to the pension plans of the Company's equity method investments. The percentage of U.S. and international projected benefit obligation at the end of the period is as follows: Pension Benefits Postretirement Benefits 2023 2022 2023 2022 (In percentages) U.S. plans 71 73 37 50 International plans 29 27 63 50 Total 100 100 100 100 The percentage of U.S. and international fair value of plan assets at the end of the period is as follows: Pension Benefits 2023 2022 (In percentages) U.S. plans 75 77 International plans 25 23 Total 100 100 Pension plans with projected benefit obligations in excess of plan assets are as follows: As of December 31, 2023 2022 (In $ millions) Projected benefit obligation 788 669 Fair value of plan assets 352 277 Pension plans with accumulated benefit obligations in excess of plan assets are as follows: As of December 31, 2023 2022 (In $ millions) Accumulated benefit obligation 738 649 Fair value of plan assets 329 270 Other postretirement plans with accumulated postretirement benefit obligations in excess of plan assets are as follows: As of December 31, 2023 2022 (In $ millions) Accumulated postretirement benefit obligation 40 38 The accumulated benefit obligation for all defined benefit pension plans is as follows: As of December 31, 2023 2022 (In $ millions) Accumulated benefit obligation 2,882 2,837 The components of net periodic benefit cost are as follows: Pension Benefits Postretirement Benefits 2023 2022 2021 2023 2022 2021 (In $ millions) Service cost 11 12 13 — 1 1 Interest cost 132 67 54 2 1 1 Expected return on plan assets (132) (166) (205) — — — Recognized actuarial (gain) loss 63 91 47 3 (10) (6) Settlement (gain) loss 1 — 3 — — — Total 75 4 (88) 5 (8) (4) The Company maintains nonqualified pension plans funded with nonqualified trusts for certain U.S. employees as follows: As of December 31, 2023 2022 (In $ millions) Nonqualified Trust Assets Marketable securities 5 5 Noncurrent Other assets, consisting of insurance contracts 21 22 Nonqualified Pension Obligations Current Other liabilities 18 18 Benefit obligations 149 152 (Income) 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, 2023 2022 2021 (In $ millions) Total 16 (34) 3 Valuation The principal weighted average assumptions used to determine benefit obligation are as follows: Pension Benefits Postretirement Benefits 2023 2022 2023 2022 (In percentages) Discount Rate Obligations U.S. plans 5.1 5.5 5.1 5.4 International plans 3.1 3.4 4.1 4.7 Combined 4.5 4.9 4.5 5.1 Rate of Compensation Increase U.S. plans N/A N/A International plans 2.8 2.7 Combined 2.8 2.7 The principal weighted average assumptions used to determine net periodic benefit cost are as follows: Pension Benefits Postretirement Benefits 2023 2022 2021 2023 2022 2021 (In percentages) Discount Rate Obligations U.S. plans 5.5 2.8 2.4 5.4 2.7 2.2 International plans 3.4 1.4 1.0 4.7 2.4 1.9 Combined 4.9 2.5 2.1 5.1 2.5 2.1 Discount Rate Service Cost U.S. plans N/A N/A N/A 5.9 3.5 N/A International plans 3.5 1.5 1.1 4.4 2.1 1.9 Combined 3.5 1.5 1.1 4.5 2.1 1.9 Discount Rate Interest Cost U.S. plans 5.4 2.2 1.7 5.3 2.0 1.5 International plans 3.4 1.2 0.7 4.7 2.1 1.5 Combined 4.8 2.0 1.4 5.0 2.1 1.5 Expected Return on Plan Assets U.S. plans 5.5 5.5 6.5 International plans 4.4 4.9 4.8 Combined 5.2 5.4 6.3 Rate of Compensation Increase U.S. plans N/A N/A N/A International plans 2.8 2.5 2.5 Combined 2.8 2.5 2.5 Interest Crediting Rate U.S. plans 4.3 1.9 1.4 International plans 1.0 1.0 1.0 Combined 4.3 1.9 1.4 The Company's health care cost trend assumptions for U.S. postretirement medical plan's net periodic benefit cost are as follows: As of December 31, 2023 2022 2021 (In percentages, except year) Health care cost trend rate assumed for next year 7.3 7.5 7.3 Health care cost trend ultimate rate 5.0 5.0 5.0 Health care cost trend ultimate rate year 2032 2032 2031 Plan Assets The weighted average target asset allocations for the Company's pension plans in 2023 are as follows: U.S. International (In percentages) Bonds - domestic to plans 84 36 Equities - domestic to plans 8 21 Equities - international to plans 8 8 Other — 35 Total 100 100 On average, the actual return on the U.S. qualified defined pension plans' assets over the long-term (20 years) has exceeded the expected long-term rate of asset return assumption. The U.S. qualified defined benefit plans' actual return on assets for the year ended December 31, 2023 was 8.8% versus an expected long-term rate of asset return assumption of 5.5%. The expected long-term rate of asset return assumption used to determine 2024 net periodic benefit cost is 5.5% for the U.S. qualified defined benefit plans. 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. Pooled-type investments: 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 Significant Total As of December 31, 2023 2022 2023 2022 2023 2022 (In $ millions) Assets Cash and cash equivalents 7 7 — — 7 7 Derivatives Swaps — — 60 4 60 4 Equity securities U.S. companies 21 26 — — 21 26 International companies 148 135 — — 148 135 Fixed income Corporate debt — — 686 662 686 662 Treasuries, other debt 87 162 1,013 968 1,100 1,130 Mortgage backed securities — — 13 12 13 12 Insurance contracts — — 104 98 104 98 Other 3 4 19 21 22 25 Total investments, at fair value (1) 266 334 1,895 1,765 2,161 2,099 Liabilities Derivatives Swaps — — 60 4 60 4 Total liabilities — — 60 4 60 4 Total net assets (2) 266 334 1,835 1,761 2,101 2,095 ______________________________ (1) 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, 2023 excludes investments in pooled-type investments, registered investment companies and short-term investment funds with fair values of $460 million, $43 million and $31 million, respectively. Total investments, at fair value, for the year ended December 31, 2022 excludes investments in pooled-type investments, registered investment companies and short-term investment funds with fair values of $441 million, $41 million and $41 million, respectively. (2) Total net assets excludes non-financial plan receivables and payables of $22 million and $5 million, respectively, as of December 31, 2023 and $17 million and $10 million, respectively, as of December 31, 2022. Non-financial items include due to/from broker, interest receivables and accrued expenses. Benefit obligation funding is as follows: Total (In $ millions) Cash contributions to defined benefit pension plans 29 Benefit payments to nonqualified pension plans 19 Benefit payments to other postretirement benefit plans 3 The Company's estimates of its U.S. defined benefit pension plan contributions reflect the provisions of the Pension Protection Act of 2006. Pension and postretirement benefits expected to be paid are as follows: Pension Benefit Payments (1) Company Portion of Postretirement Benefit Cost (2) (In $ millions) 2024 238 3 2025 234 3 2026 232 3 2027 226 3 2028 224 2 2029-2033 1,044 11 ______________________________ (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, 2023 | |
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, establish standards for the treatment, storage and disposal of solid and hazardous wastes, and impose record keeping and notification requirements. Failure to timely comply with these laws and regulations may expose the Company to penalties. The Company believes that it is in substantial compliance with all applicable environmental laws and regulations and engages in an ongoing process of updating its controls to mitigate compliance risks. 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 liabilities As of December 31, 2023 2022 (In $ millions) Demerger obligations ( Note 19 ) 14 20 Divestiture obligations ( Note 19 ) 13 14 Active sites 25 21 U.S. Superfund sites 8 10 Other environmental remediation liabilities 2 2 Total 62 67 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 U.S. Superfund sites (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 19 ). Certain of these sites, at which the Company maintains continuing involvement, were and continue to be designated as discontinued operations when closed. 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 2023 or have any receivables for insurance recoveries related to these matters as of December 31, 2023. German InfraServ Entities The Company's InfraServ Entities ( Note 7 ) 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 19 ). 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, 2023 Ownership Liability Reserves (1) (In percentages) (In $ millions) InfraServ GmbH & Co. Gendorf KG 30 10 8 InfraServ GmbH & Co. Hoechst KG 31 40 65 Yncoris GmbH & Co. KG 22 22 1 ______________________________ (1) Gross reserves maintained by the respective entity. U.S. Superfund Sites In the U.S., the Company may be subject to substantial claims brought by U.S. 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 U.S. 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 U.S. 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 any probable and reasonably estimable liabilities. In establishing these liabilities, the Company considers the contaminants of concern, the potential impact thereof, the relationship of the contaminants of concern to its current and historic operations, 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 Diamond Alkali Superfund Site, which is comprised of a number of sub-sites, including the Lower Passaic River Study Area ("LPRSA"), which is the lower 17-mile stretch of the Passaic River ("Lower Passaic River Site"), and the Newark Bay Study Area. 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 Lower Passaic River Site in order to identify the levels of contaminants and potential cleanup actions, including the potential migration of contaminants between the LPRSA and the Newark Bay Study Area. In March 2016, the EPA issued its final Record of Decision concerning the remediation of the lower 8.3 miles of the Lower Passaic River Site ("Lower 8.3 Miles"). Pursuant to the EPA's Record of Decision, the Lower 8.3 Miles must be dredged bank to bank and an engineered cap must be installed at an EPA estimated cost of approximately $1.4 billion. In September 2021, the EPA issued a Record of Decision selecting an interim remedial plan for the upper 9 miles of the Lower Passaic River ("Upper 9 Miles"). Pursuant to the EPA's Record of Decision, targeted dredging will be conducted in the Upper 9 Miles to address surface sediments with elevated contamination followed by the installation of an engineered cap at an EPA estimated cost of $441 million. The Company owned and/or operated facilities in the vicinity of the Lower 8.3 Miles, but has found no evidence that it contributed any of the contaminants of concern to the Passaic River. In June 2018, Occidental Chemical Corporation ("OCC"), the successor to the Diamond Alkali Company, sued a subsidiary of the Company and 119 other parties alleging claims for joint and several damages, contribution and declaratory relief under Section 107 and 113 of Superfund for costs to clean up the LPRSA portion of the Diamond Alkali Superfund Site, Occidental Chemical Corporation v. 21st Century Fox America, Inc., et al, No. 2:18-CV-11273 (MCA) (LDW) (U.S. District Court New Jersey) (the "2018 OCC Lawsuit"), alleging that each of the defendants owned or operated a facility that contributed contamination to the LPRSA. With respect to the Company, the 2018 OCC lawsuit is limited to the former Celanese facility that Essex County, New Jersey has agreed to indemnify the Company for and does not change the Company's estimated liability for LPRSA cleanup costs. Separately, the United States lodged a Consent Decree in U.S. District Court for the District of New Jersey on December 16, 2022 that will resolve the Company's liability (and that of more than 80 other settling defendants) to the EPA for costs to clean up both the Lower 8.3 Miles and Upper 9 Miles of the Lower Passaic River Site in exchange for a collective payment of $150 million, United States v. Alden Leeds, Inc., No. 2:22-7326 (MCA) (LDW) (U.S. District Court New Jersey) ("Consent Decree Action"). The Consent Decree also will provide the Company protection from contribution claims by others for costs incurred to clean up both the Lower 8.3 Miles and Upper 9 Miles of the Lower Passaic River Site. The Company's proposed payment toward the $150 million collective settlement payment is not material to the Company's results of operations, cash flows or financial position. The Consent Decree is still subject to public comment and court approval. On March 7, 2023, the U.S. District Court for the District of New Jersey entered an order staying and administratively terminating the 2018 OCC Lawsuit, pending resolution of the request for judicial approval of the Consent Decree in the Consent Decree Action. On March 24, 2023, OCC filed a new lawsuit against 40 parties, including a subsidiary of the Company, seeking to recover costs for remedial design work the EPA has ordered OCC to undertake for a portion of the LPRSA at an estimated cost of $71 million, Occidental Chemical Corporation v. Givaudan Fragrances Corporation, No. 2:23-cv-1699 (U.S. District Court New Jersey) (the "2023 OCC Lawsuit"). Like the earlier lawsuit, the 2023 OCC Lawsuit concerns the facility Essex County, New Jersey purchased and for which Essex County, New Jersey has agreed to defend and indemnify the Company. This new lawsuit does not change the Company's estimated liability for LPRSA cleanup costs. In the interim, the Company continues to vigorously defend these matters and continues to believe that its ultimate allocable share of the cleanup costs with respect to the Lower Passaic River Site, previously estimated at less than 1%, will not be material. Other Environmental Matters In April 2022, a methanol leak on a pipeline to the Company's Bishop, Texas facility was discovered. The release has been contained, the leak has been repaired and the pipeline has resumed operation. The Company promptly disclosed the incident to state and federal authorities, including the Texas Commission on Environmental Quality and the EPA, and remediation activities are now completed. While the Company has not received a notice of violation nor been assessed any fines or penalties to date, the Company recorded a reserve in Other current liabilities based on anticipated clean-up costs and possible penalties to state or federal authorities. The Company does not believe that resolution of this matter will have a material impact on its financial condition or results of operations. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Shareholders' 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, par value $0.0001 per share ("Common Stock"), unless the Company's Board of Directors, in its sole discretion, determines otherwise. The amount available to the Company to pay cash dividends is not currently restricted by its existing Global Credit Agreements and its indentures governing its senior unsecured notes. Any decision to declare and pay dividends in the future will be made at the discretion of the Company's Board of Directors and will depend on, among other things, the results of operations, cash requirements, financial condition, contractual restrictions and other factors that the Company's Board of Directors may deem relevant. The Company declared a quarterly cash dividend of $0.70 per share on its Common Stock on February 7, 2024, amounting to approximately $76 million. The cash dividend will be paid on March 5, 2024 to holders of record as of February 20, 2024. 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 2023 2022 2021 Shares repurchased — — 6,556,378 69,324,429 Average purchase price per share $ — $ — $ 152.53 $ 83.71 Amount spent on repurchased shares (in $ millions) $ — $ — $ 1,000 $ 5,803 Aggregate Board of Directors repurchase authorizations during the period (in $ millions) $ — $ — $ 1,000 $ 6,866 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 shareholders' equity. Other Comprehensive Income (Loss), Net Year Ended December 31, 2023 2022 2021 Gross Income Net Gross Income Net Gross Income Net (In $ millions) Foreign currency translation (275) 62 (213) (240) 23 (217) 20 (31) (11) Gain (loss) on derivative hedges (12) 6 (6) 26 (5) 21 34 (21) 13 Pension and postretirement benefits gain (loss) (8) 1 (7) 7 — 7 (3) — (3) Total (295) 69 (226) (207) 18 (189) 51 (52) (1) Adjustments to Accumulated other comprehensive income (loss), net, are as follows: Foreign Gain (Loss) on Derivative Hedges ( Note 17 ) Pension and Postretirement Benefits Gain (Loss) ( Note 12 ) Accumulated (In $ millions) As of December 31, 2020 (260) (56) (12) (328) Other comprehensive income (loss) before reclassifications 20 34 (3) 51 Income tax (provision) benefit (31) (21) — (52) As of December 31, 2021 (271) (43) (15) (329) Other comprehensive income (loss) before reclassifications (240) 43 7 (190) Amounts reclassified from accumulated other comprehensive income (loss) — (17) — (17) Income tax (provision) benefit 23 (5) — 18 As of December 31, 2022 (488) (22) (8) (518) Other comprehensive income (loss) before reclassifications (275) (3) (8) (286) Amounts reclassified from accumulated other comprehensive income (loss) — (9) — (9) Income tax (provision) benefit 62 6 1 69 As of December 31, 2023 (701) (28) (15) (744) |
Other (Charges) Gains, Net
Other (Charges) Gains, Net | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Other (Charges) Gains, Net | Other (Charges) Gains, Net Year Ended December 31, 2023 2022 2021 (In $ millions) Restructuring (1) (52) (6) (5) Asset impairments (15) (14) (2) Plant/office closures (1) 12 10 Total (68) (8) 3 ______________________________ (1) Includes employee termination benefits primarily related to Company-wide business optimization projects during the year ended December 31, 2023. The changes in the restructuring liabilities by business segment are as follows: Engineered Acetyl Other Total (In $ millions) Employee Termination Benefits As of December 31, 2022 4 1 1 6 Additions 40 4 8 52 Cash payments (31) (3) (6) (40) As of December 31, 2023 13 2 3 18 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In December 2017, the Tax Cuts and Jobs Act (the "TCJA") was enacted and was effective January 1, 2018. The U.S. Treasury has issued various notices and final and proposed regulatory packages supplementing the TCJA provisions since 2018. In December 2021, the U.S. Treasury issued final foreign tax credit regulations clarifying certain items in the TCJA and prior guidance related to disallowance of foreign income taxes related to income exempt from U.S. taxation, treatment of debt between foreign affiliates for expense apportionment purpose, allocation and apportionment of foreign income taxes and the definition of creditable foreign income taxes. The regulations were published in the federal register in January 2022 and became effective in March 2022. In November 2022, the U.S. Treasury released proposed foreign tax credit regulations addressing the eligibility of foreign taxes for credit by clarifying the cost recovery requirements, attribution requirements for withholding taxes on royalties and attribution definitions regarding allocation and apportionment of foreign taxes. The Company does not expect the final or the proposed regulations to have a material impact to current or future income tax expense. In August 2022, the Inflation Reduction Act (the "IRA") was enacted and included a 1% excise tax on share repurchases in excess of $1 million, and a corporate minimum tax of 15% on adjusted book earnings. The corporate minimum tax paid is creditable in future years to the extent regular tax liability exceeds the minimum tax in any given year. The Company does not expect these provisions will have a material impact to future income tax expense. The IRA also provides various beneficial credits for energy efficient related manufacturing, transportation and fuels, hydrogen/carbon recapture and renewable energy, which the Company is evaluating in regard to planned projects. The Company will continue to monitor the expected impacts of any new guidance on the Company's filing positions and will record the impacts as discrete income tax expense adjustments in the period the guidance is finalized or becomes effective. In December 2021, the Organization for Economic Co-operation and Development ("OECD") issued final Model Rules for Pillars One and Two of its Base Erosion and Profit Shifting ("BEPS") project. In general, Pillar One addresses nexus concerns and the allocation of profits among companies in which a multinational enterprise ("MNE") conducts its business. Pillar Two aims to ensure that all MNEs pay an effective tax rate of no less than 15% on their adjusted net income in each of the jurisdictions in which they have operations. Pillar Two is more impactful to the Company as it allows for assessment even if the individual countries do not enact its minimum tax provisions. In effect, Pillar Two allows any country within which an MNE operates to levy tax upon that MNE to the extent it determines that the MNE is paying less than a 15% effective tax rate on its adjusted net income. The taxes levied may then be allocated among the jurisdictions that conform to the OECD rules. In December 2022, the member states of the European Union ("EU") unanimously voted to adopt the OECD's minimum tax which was agreed to by consensus of the BEPS 2.0 (Pillars One and Two) signatory jurisdictions. Under the EU's minimum tax directive, member states are to adopt domestic legislation implementing the minimum tax rules effective for periods beginning on or after December 31, 2023, with Pillar Two's "under-taxed profit rule" to take effect for periods beginning on or after December 31, 2024. The EU effective dates are January 1, 2024, and January 1, 2025, for different aspects of the directive. Legislatures in multiple countries outside of the EU have also drafted legislation to implement the OECD's minimum tax proposals. On July 17, 2023, the OECD published Administrative Guidance proposing certain safe harbor provisions, including an effective rate test and a routine profits test, which if satisfied effectively delay effective dates of Pillar Two to January 1, 2027. The EU and a significant number of other countries are expected to implement the safe harbor in local legislation. Based on these safe harbor provisions, the Company currently expects that several material jurisdictions, including the U.S., Netherlands, Switzerland, Germany, China, Singapore and Canada, will qualify for the safe harbor effectively extending the application of the global minimum tax until January 1, 2027. The Company will continue to monitor the developments and implementation of the OECD BEPS projects. Currently the Company does not meet the requirements for the application of Pillar One. After an initial assessment of the application of the safe harbor provisions, the Company is currently not expecting a material impact from the local adoption of the OECD Pillar Two proposals in 2024, but is continuing to model the effect of these provisions on its future effective tax rate and cash taxes. Income Tax Provision Earnings (loss) from continuing operations before tax by jurisdiction are as follows: Year Ended December 31, 2023 2022 2021 (In $ millions) U.S. (163) (292) 202 International 1,346 1,713 2,046 Total 1,183 1,421 2,248 The income tax provision (benefit) consists of the following: Year Ended December 31, 2023 2022 2021 (In $ millions) Current U.S. 8 54 — International 162 306 323 Total 170 360 323 Deferred U.S. (178) (261) (16) International (782) (588) 23 Total (960) (849) 7 Total (790) (489) 330 A reconciliation of the significant differences between the U.S. federal statutory tax rate of 21% and the effective income tax rate on income from continuing operations is as follows: Year Ended December 31, 2023 2022 2021 (In $ millions, except percentages) Income tax provision computed at U.S. federal statutory tax rate 248 298 472 Change in valuation allowance (150) (15) (50) Equity income and dividends (27) (47) (29) (Income) expense not resulting in tax impact, net (9) 2 (53) U.S. tax effect of foreign earnings and dividends 384 162 332 Foreign tax credits (73) (120) (328) Other foreign tax rate differentials (108) (43) (66) Legislative changes (44) — (8) State income taxes, net of federal benefit (8) (2) 6 Recognition of basis differences in investments in affiliates — 6 — Asset transfers between wholly owned foreign affiliates (839) (816) — Other, net (164) 86 54 Income tax provision (benefit) (790) (489) 330 Effective income tax rate (67) % (34) % 15 % In December 2022, as part of its integration efforts for the M&M Acquisition (see Note 4 ) and to simplify future cash flows for purposes of acquisition debt repayment, the Company reorganized its foreign legal entity holding structure and relocated certain of its intangible assets to align with the acquired M&M foreign operations. The transfer of these assets between wholly owned foreign affiliates, generated a net deferred tax benefit of approximately $800 million. The contractual provisions for these asset transfers provided for adjustments to the purchase price for business events occurring within the succeeding twelve months, and as a result, the Company recorded an additional deferred tax benefit of approximately $190 million in 2023. In 2023, in furtherance of its integration strategy for the M&M Acquisition, the Company continued to relocate certain intangible assets to better align with the acquired M&M foreign operations. In addition, in late 2023, as part of its overall integration approach, the Company initiated a strategy to realign its European headquarters and principal operations to Switzerland to achieve operational efficiencies by leveraging an acquired site for future growth and improved alignment of ownership of intangible assets with future technology and innovation efforts to be conducted locally. These operational efficiencies are expected to include, (i) centralized regional manufacturing, sales and operational planning, procurement and business leadership and (ii) cost and facility savings. The headquarters and principal operations realignment strategy, and the relocation of intangible assets to wholly owned foreign affiliates, generated a net deferred tax benefit of approximately $725 million. In addition, the relocation of these intangible assets resulted in the utilization of approximately $230 million of the Company's existing U.S. foreign tax credit carryforwards. These carryforwards had previously been offset by a full valuation allowance. Included in the Other, net line in the effective income tax rate reconciliation above are the U.S. GAAP gain in excess of the tax gain related to the formation of the Nutrinova joint venture (see Note 4 ) of $102 million for the year ended December 31, 2023 and charges of approximately $20 million related to transaction costs for the M&M Acquisition for the year ended December 31, 2022. In addition, included in the Other, net line in the effective income tax rate reconciliation above are U.S. benefits of foreign derived intangible income of $72 million, $0 million, and $10 million; and changes in uncertain tax positions of $5 million, $63 million and $65 million for the years ended December 31, 2023, 2022 and 2021, respectively. 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, 2023 2022 (In $ millions) Deferred Tax Assets Pension and postretirement obligations 61 61 Accrued expenses 56 80 Inventory (13) (11) Net operating loss carryforwards 783 528 Tax credit carryforwards 135 359 Intangibles and other 737 400 Subtotal 1,759 1,417 Valuation allowance (1) (656) (781) Total 1,103 636 Deferred Tax Liabilities Depreciation and amortization 152 743 Investments in affiliates 188 171 Other 85 156 Total 425 1,070 Net deferred tax assets (liabilities) 678 (434) ______________________________ (1) Includes deferred tax asset valuation allowances for the Company's deferred tax assets in Luxembourg, the U.S., Spain, China, the United Kingdom, France, Mexico, Singapore, Canada and Germany. These valuation allowances relate primarily to net operating loss carryforward benefits, foreign tax credit carryforwards and other net deferred tax assets, all of which may not be realizable. As a result of the TCJA, U.S. federal and state income taxes have been recorded on undistributed foreign earnings accumulated from 1986 through 2017. The Company's previously taxed income for its foreign subsidiaries significantly exceeds its offshore cash balances. The Company has not recorded a deferred tax liability for foreign withholding or other foreign local tax that would be due when cash is actually repatriated to the U.S. because those foreign earnings are considered permanently reinvested in the business or may be remitted substantially free of any additional local taxes. The determination of the amount of the unrecognized deferred tax liability related to the undistributed earnings is not practicable. Tax Carryforwards • Net Operating Loss and Capital Loss Carryforwards As of December 31, 2023, the Company had available U.S. federal net operating loss carryforwards of $20 million that are subject to limitation. These net operating loss carryforwards begin to expire in 2025. As of December 31, 2023, the Company also had available state net operating loss carryforwards, net of federal tax impact, of $42 million, $27 million of which are offset by a valuation allowance due to uncertain recoverability. The Company also has foreign net operating loss carryforwards available as of December 31, 2023 of $4.0 billion primarily for Malta, Luxembourg, Spain, the United Kingdom, Singapore, Switzerland, Hong Kong and China with various expiration dates. Net operating loss carryforwards of $17 million in China began to expire in 2023 and are scheduled to continue to expire through 2028. Net operating losses in most other foreign jurisdictions do not have an expiration date. The Company acquired capital loss carryforwards of $173 million as part of the M&M Acquisition ( Note 4 ) that are subject to annual limitation due to the ownership change. The Company fully offset these capital loss carryforwards with a valuation allowance due to uncertain recoverability. • Tax Credit Carryforwards The Company had available $112 million of foreign tax credit carryforwards, which are fully offset by a valuation allowance due to uncertain recoverability and $18 million of alternative minimum tax credit carryforwards in the U.S. The foreign tax credit carryforwards are subject to a ten-year carryforward period and begin to expire in 2027. The alternative minimum tax credits are subject to annual limitation due to prior ownership changes but have an unlimited carryforward period and can be used to offset federal tax liability in future years. The Company evaluates its deferred tax assets on a quarterly basis to determine whether a valuation allowance is necessary. Realization of deferred tax assets ultimately depends on the existence of sufficient taxable income of the appropriate character in the applicable carryback or carryforward periods. Changes in the Company's estimates of future taxable income and prudent and feasible tax planning strategies will affect the estimate of the realization of the tax benefits of these foreign tax credit carryforwards. As such, the Company is currently evaluating tax planning strategies to enable use of the foreign tax credit carryforwards that may decrease the Company's effective tax rate in future periods as the valuation allowance is reversed. Uncertain Tax Positions Activity related to uncertain tax positions is as follows: Year Ended December 31, 2023 2022 2021 (In $ millions) As of the beginning of the year 275 218 165 Increases in tax positions for the current year 10 8 33 Increases in tax positions for prior years 9 102 28 Decreases in tax positions for prior years (35) (45) (11) Increases (decreases) due to settlements (35) (8) 3 As of the end of the year 224 275 218 Total uncertain tax positions that if recognized would impact the effective tax rate 244 274 224 Total amount of interest expense (benefit) and penalties recognized in the consolidated statements of operations (1) 22 10 2 Total amount of interest expense and penalties recognized in the consolidated balance sheets 71 59 52 ______________________________ (1) This amount reflects interest on uncertain tax positions and release of tax positions due to changes in assessment, statute lapses or audit closures that were reflected in the consolidated statements of operations. The increase in uncertain tax positions for the year ended December 31, 2022 was primarily due to increases in foreign tax positions related to ongoing tax examinations, partially offset by releases due to completed examinations and statute closures. The Company's tax returns have been under audit for the years 2013 through 2015 by the United States, Netherlands and Germany (the "Authorities"). In September 2021, the Company received a draft joint audit report proposing adjustments to transfer pricing and the reallocation of income between the related jurisdictions. The Authorities also proposed to apply these adjustments to open tax years through 2019. The Company and the Authorities were unable to reach an agreement jointly and therefore the audits continued on a separate jurisdictional basis. In the fourth quarter of 2022, the Company concluded settlement discussions with the Dutch tax authorities. The Company is engaged in continuing discussions with the other Authorities and is currently evaluating all additional potential remedies regarding the ongoing examinations. As of December 31, 2023, the Company believes that an adequate provision for income taxes has been made for all open tax years related to the examinations by the Authorities. However, the outcome of tax audits cannot be predicted with certainty. If any issues raised by the Authorities are resolved in a manner inconsistent with the Company's expectations or the Company is unsuccessful in defending its position, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. If required, any such adjustments could be material to the statements of operations and cash flows in the period(s) recorded. In addition, the Company's income tax returns in Mexico are under audit for the year 2018, and in Canada for the years 2016 through 2022. In August 2023, the Company negotiated a partial settlement with the Mexico tax authorities for its audit for the year 2018. The partial settlement did not have a material impact on income tax expense in the consolidated statements of operations for the year ended December 31, 2023. In September 2023, the Canadian tax authorities opened tax audits for the years 2019 through 2022, and the audits are in the preliminary stages. The Company is in ongoing discussions regarding the audit findings with the Canadian tax authorities for the years 2016 through 2018 and does not expect a material impact to income tax expense. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The components of lease expense are as follows: Year Ended December 31, Statement of Operations Classification 2023 2022 2021 (In $ millions) Lease Cost Operating lease cost 99 66 40 Cost of sales / Selling, general and administrative expenses Short-term lease cost 19 19 18 Cost of sales / Selling, general and administrative expenses Variable lease cost 13 15 12 Cost of sales / Selling, general and administrative expenses Finance lease cost Amortization of leased assets 21 19 19 Cost of sales Interest on lease liabilities 10 11 13 Interest expense Sublease income — 2 — Other income (expense), net Total net lease cost 162 132 102 Supplemental consolidated balance sheet information related to leases is as follows: As of December 31, Balance Sheet Classification 2023 2022 (In $ millions) Leases Assets Operating lease assets 422 413 Operating lease ROU assets Finance lease assets 154 176 Property, plant and equipment, net Total leased assets 576 589 Liabilities Current Operating 89 83 Current Other liabilities Finance 24 25 Short-term borrowings and current installments of long-term debt Noncurrent Operating 325 364 Operating lease liabilities Finance 124 147 Long-term debt Total lease liabilities 562 619 As of December 31, 2023 2022 Weighted-Average Remaining Lease Term (years) Operating leases 8.6 9.0 Finance leases 7.8 8.3 Weighted-Average Discount Rate Operating leases 3.5 % 3.0 % Finance leases 6.2 % 6.4 % Supplemental consolidated cash flow information related to leases is as follows: Year Ended December 31, 2023 2022 2021 (In $ millions) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 92 52 37 Operating cash flows from finance leases 10 11 13 Financing cash flows from finance leases 24 25 29 ROU assets obtained in exchange for finance lease liabilities ( Note 20 ) 2 28 — ROU assets obtained in exchange for operating lease liabilities 58 93 52 Maturities of lease liabilities are as follows: As of December 31, 2023 Operating Leases Finance Leases (In $ millions) 2024 102 32 2025 87 28 2026 68 26 2027 36 21 2028 28 18 Later years 148 75 Total lease payments 469 200 Less amounts representing interest (55) (52) Total lease obligations 414 148 |
Leases | Leases The components of lease expense are as follows: Year Ended December 31, Statement of Operations Classification 2023 2022 2021 (In $ millions) Lease Cost Operating lease cost 99 66 40 Cost of sales / Selling, general and administrative expenses Short-term lease cost 19 19 18 Cost of sales / Selling, general and administrative expenses Variable lease cost 13 15 12 Cost of sales / Selling, general and administrative expenses Finance lease cost Amortization of leased assets 21 19 19 Cost of sales Interest on lease liabilities 10 11 13 Interest expense Sublease income — 2 — Other income (expense), net Total net lease cost 162 132 102 Supplemental consolidated balance sheet information related to leases is as follows: As of December 31, Balance Sheet Classification 2023 2022 (In $ millions) Leases Assets Operating lease assets 422 413 Operating lease ROU assets Finance lease assets 154 176 Property, plant and equipment, net Total leased assets 576 589 Liabilities Current Operating 89 83 Current Other liabilities Finance 24 25 Short-term borrowings and current installments of long-term debt Noncurrent Operating 325 364 Operating lease liabilities Finance 124 147 Long-term debt Total lease liabilities 562 619 As of December 31, 2023 2022 Weighted-Average Remaining Lease Term (years) Operating leases 8.6 9.0 Finance leases 7.8 8.3 Weighted-Average Discount Rate Operating leases 3.5 % 3.0 % Finance leases 6.2 % 6.4 % Supplemental consolidated cash flow information related to leases is as follows: Year Ended December 31, 2023 2022 2021 (In $ millions) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 92 52 37 Operating cash flows from finance leases 10 11 13 Financing cash flows from finance leases 24 25 29 ROU assets obtained in exchange for finance lease liabilities ( Note 20 ) 2 28 — ROU assets obtained in exchange for operating lease liabilities 58 93 52 Maturities of lease liabilities are as follows: As of December 31, 2023 Operating Leases Finance Leases (In $ millions) 2024 102 32 2025 87 28 2026 68 26 2027 36 21 2028 28 18 Later years 148 75 Total lease payments 469 200 Less amounts representing interest (55) (52) Total lease obligations 414 148 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Information regarding changes in the fair value of the Company's derivative and non-derivative instruments is as follows: Gain (Loss) Gain (Loss) Recognized Statement of Operations Classification Year Ended December 31, Year Ended December 31, 2023 2022 2021 2023 2022 2021 (In $ millions) Designated as Cash Flow Hedges Commodity swaps (5) 39 25 2 23 3 Cost of sales Interest rate swaps — — 10 (7) (7) (3) Interest expense Foreign currency forwards 5 2 (1) 5 1 — Cost of sales Total — 41 34 — 17 — Designated as Fair Value Hedges Cross-currency swaps (1) (1) — — 9 — — Foreign exchange gain (loss), net Designated as Net Investment Hedges (2) Foreign currency denominated debt ( Note 11 ) (106) (22) 107 — — — N/A Cross-currency swaps ( Note 11 ) (174) (92) 27 — — — N/A Total (280) (114) 134 — — — Not Designated as Hedges Foreign currency forwards and swaps — — — (19) (2) (13) Foreign exchange gain (loss), net; Other income (expense), net ______________________________ (1) In conjunction with the 2023 Offering ( Note 11 ) in August 2023, the Company entered into a cross-currency swap to effectively convert $500 million of the issued notes into a Japanese yen-denominated borrowing at prevailing yen interest rates, maturing on July 15, 2029. The swap qualifies and has been designated as a fair value hedge of the Company's foreign currency exchange rate exposure on the long-term debt of its Japanese yen-denominated subsidiary. Additionally, in conjunction with the 2023 Offering ( Note 11 ) in August 2023, the Company entered into cross-currency swaps to effectively convert $1.0 billion of the issued notes into 5-year and 7-year euro-denominated borrowings at prevailing euro interest rates, maturing on November 15, 2028 and November 15, 2030, respectively. The swaps qualify and have been designated as fair value hedges of the Company's foreign currency exchange rate exposure on the long-term debt of its euro-denominated subsidiary. (2) Concurrently with offering of the Acquisition USD Notes in July 2022 ( Note 11 ), the Company entered into cross-currency swaps to effectively convert $2.0 billion and $500 million of the Acquisition USD Notes into a euro-denominated borrowing at prevailing euro interest rates, maturing on July 15, 2027 and July 15, 2032, respectively. The swaps and €1.5 billion of the Acquisition Euro Notes qualify and have been designated as net investment hedges of the Company's foreign currency exchange rate exposure on the net investments of certain of its euro-denominated subsidiaries. See Note 18 for additional information regarding the fair value of the Company's derivative instruments. Certain of the Company's commodity swaps, interest rate swaps, cross-currency swaps and foreign currency forwards and 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. Derivatives Not Designated As Hedges 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 U.S. dollar equivalents of net foreign exchange exposure related to (short) long foreign exchange forward contracts outstanding by currency are as follows: 2024 Maturity (In $ millions) Currency Brazilian real (43) British pound sterling 53 Canadian dollar 23 Chinese yuan 383 Euro 148 Hungarian forint 18 Indian rupee (27) Indonesian rupiah (9) Japanese yen (38) Korean won 197 Mexican peso 109 Singapore dollar 21 Swedish krona (7) Swiss franc (156) Total 672 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, 2023 2022 (In $ millions) Derivative Assets Gross amount recognized 183 169 Gross amount offset in the consolidated balance sheets — — Net amount presented in the consolidated balance sheets 183 169 Gross amount not offset in the consolidated balance sheets 40 16 Net amount 143 153 As of December 31, 2023 2022 (In $ millions) Derivative Liabilities Gross amount recognized 440 189 Gross amount offset in the consolidated balance sheets — — Net amount presented in the consolidated balance sheets 440 189 Gross amount not offset in the consolidated balance sheets 40 16 Net amount 400 173 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
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: Derivative financial instruments include interest rate swaps, commodity 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, commodity 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 Significant Other Observable Inputs (Level 2) Other assets Other liabilities Notional Amount Current Noncurrent Current Noncurrent (In millions) (In $ millions) As of December 31, 2023 Derivatives Designated as Cash Flow Hedges Commodity swaps $ 67 5 36 2 — Designated as Fair Value Hedges Cross-currency swaps $ 1,500 40 — 11 61 Derivatives Designated as Net Investment Hedges Cross-currency swaps € 5,712 93 — 61 281 Derivatives Not Designated as Hedges Foreign currency forwards and swaps $ 1,954 9 — 16 8 Total 147 36 90 350 As of December 31, 2022 Derivatives Designated as Cash Flow Hedges Commodity swaps $ 82 9 39 2 — Foreign currency forwards and swaps $ 49 — — — — Derivatives Designated as Net Investment Hedges Cross-currency swaps € 5,639 99 13 58 126 Derivatives Not Designated as Hedges Foreign currency forwards and swaps $ 1,265 9 — 3 — Total 117 52 63 126 Carrying values and fair values of financial instruments that are not carried at fair value are as follows: Fair Value Measurement Carrying Significant Unobservable Total As of December 31, 2023 2022 2023 2022 2023 2022 2023 2022 (In $ millions) Equity investments without readily determinable fair values 170 170 — — — — — — Insurance contracts in nonqualified trusts 21 22 21 23 — — 21 23 Long-term debt, including current installments of long-term debt 13,400 13,953 13,514 13,247 148 172 13,662 13,419 In general, the equity investments included in the table above are not publicly traded and their fair values are not readily determinable. The Company believes the carrying values approximate fair value. 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 finance leases, which are included in long-term debt in the consolidated balance sheets, 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, 2023 and 2022, 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, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Guarantees Equity Affiliates The Company has directly guaranteed various debt obligations under agreements with third parties related to certain equity affiliates. At December 31, 2023, the Company had directly guaranteed $145 million and €31 million of such obligations. These amounts represent the maximum potential amount of future (undiscounted) payments that the Company could be required to make under the guarantees. The Company would be required to perform on these guarantees in the event of default by the guaranteed party. Maximum future payments under these obligations are $145 million and €31 million for bank borrowings and the guarantee will remain in force until all guaranteed obligations are paid and the underlying debt agreements entered into by certain equity affiliates are terminated. Environmental and Other Liabilities 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. The Company has accrued for all probable and reasonably estimable losses associated with all known matters or claims. 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 13 ). 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, 2023 are $114 million. Though the Company is significantly under its obligation cap under Category B, 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 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 significant risk ( Note 13 ). 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 $116 million as of December 31, 2023. 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 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. 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, 2023, the Company had unconditional purchase obligations of $4.0 billion, of which $683 million will be paid in 2024, $565 million in 2025, $452 million in 2026, $369 million in 2027, $230 million in 2028 and the balance thereafter through 2042. 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, insurance coverage disputes, contracts, employment, antitrust or competition, intellectual property, personal injury and other actions in tort, workers' compensation, chemical exposure, asbestos exposure, taxes, trade compliance, acquisitions and divestitures, claims of current and legacy shareholders, 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 and, based on the current facts, does not believe the outcomes from these matters would be material to the Company's results of operations, cash flows or financial position. As previously reported, in July 2020, the Company settled a European Commission competition law investigation involving certain of its subsidiaries and three other companies related to certain past ethylene purchases. Shell Chemicals Europe and another group of corporate claimants have filed claims for damages with the District Court of Amsterdam against four companies, including Celanese, arising from those activities, and the first court hearing was held in late September 2023. The Company intends to vigorously defend itself against these claims. While it is possible that additional parties could assert demands or claims related to this matter, based on information available at this time, the Company does not expect ultimate resolution of this matter to have a material impact on its financial condition or results of operations. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Year Ended December 31, 2023 2022 2021 (In $ millions) Interest paid, net of amounts capitalized 780 122 105 Taxes paid, net of refunds 237 273 215 Noncash Investing and Financing Activities Accrued treasury stock repurchases — (17) — Finance lease obligations ( Note 16 ) 2 28 — Accrued capital expenditures (26) 40 23 Asset retirement obligations 11 3 3 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
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 and customer relationships, 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. Effective December 31, 2022, the Company reorganized its operating and reportable segments to align with recent structural and management reporting changes. The change reflects the resegmentation of the former Acetate Tow operating and reportable segment into the Acetyl Chain operating and reportable segment. This reorganization reflects the culmination of a shift in operating strategy and organizational hierarchy, with a focus on integration, collaboration and maximization of value creation through its global optionality and integrated chain model of the underlying businesses. The historical segment information has been recast to conform with the reorganized segments. The Company's business segments are as follows: • Engineered Materials The Company's 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 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 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. • Acetyl Chain The Company's Acetyl Chain segment includes the integrated chain of intermediate chemistry, emulsion polymers, ethylene vinyl acetate ("EVA") polymers, redispersible powders ("RDP"), and acetate tow businesses. The Company's intermediate chemistry business 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 pharmaceuticals. It also produces organic solvents and intermediates for pharmaceutical, agricultural and chemical products. 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 EVA 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, automotive parts and carpeting. The Company's RDP business is a leading producer of products that have applications in a number of building and construction applications including flooring, plasters, insulation, tiling and waterproofing. The Company's acetate tow business serves consumer-driven applications and is a leading global producer and supplier of acetate tow and acetate flake, primarily used in filter products applications. • 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. Engineered Acetyl Chain Other Eliminations Consolidated (In $ millions) Year Ended December 31, 2023 Net sales 6,149 4,884 (1) — (93) 10,940 Other (charges) gains, net ( Note 24 ) (56) (4) (8) — (68) Operating profit (loss) 1,083 (2) 1,109 (505) — 1,687 Equity in net earnings (loss) of affiliates 83 6 13 — 102 Depreciation and amortization 462 217 27 — 706 Capital expenditures 237 207 98 — 542 (3) As of December 31, 2023 Goodwill and intangible assets, net 10,525 427 — — 10,952 Total assets 17,930 5,538 3,129 — 26,597 Year Ended December 31, 2022 Net sales 4,024 5,743 (1) — (94) 9,673 Other (charges) gains, net ( Note 24 ) (7) — (1) — (8) Operating profit (loss) 429 1,447 (498) — 1,378 Equity in net earnings (loss) of affiliates 202 7 11 — 220 Depreciation and amortization 226 213 23 — 462 Capital expenditures 178 352 53 — 583 (3) As of December 31, 2022 Goodwill and intangible assets, net 10,826 421 — — 11,247 Total assets 20,611 5,471 190 — 26,272 Year Ended December 31, 2021 Net sales 2,718 5,894 (1) — (75) 8,537 Other (charges) gains, net ( Note 24 ) 6 1 (4) — 3 Operating profit (loss) 411 1,875 (340) — 1,946 Equity in net earnings (loss) of affiliates 126 7 13 — 146 Depreciation and amortization 144 210 17 — 371 Capital expenditures 154 311 25 — 490 (3) ______________________________ (1) Includes intersegment sales of $93 million, $94 million and $75 million for the years ended December 31, 2023, 2022 and 2021, respectively. (2) Includes a $515 million gain related to the formation of the Nutrinova joint venture included in Gain (loss) on disposition of businesses and assets, net in the consolidated statements of operations ( N ote 4 ). (3) Includes a decrease in accrued capital expenditures of $26 million, an increase in accrued capital expenditures of $40 million and an increase in accrued capital expenditures of $23 million for the years ended December 31, 2023, 2022 and 2021, respectively. Geographical Area Information The Net sales to external customers based on geographic location are as follows: Year Ended December 31, 2023 2022 2021 (In $ millions) Belgium 499 251 268 Brazil 140 122 92 Canada 146 120 98 China 1,952 1,525 1,621 France 84 31 28 Germany 2,468 2,934 2,675 India 150 55 34 Italy 77 7 — Japan 312 87 15 Mexico 361 359 330 Singapore 1,146 1,209 1,202 South Korea 154 68 8 Spain 58 11 — Switzerland 223 165 140 United Kingdom 86 13 — U.S. 2,821 2,562 2,004 Other 263 154 22 Total 10,940 9,673 8,537 Property, plant and equipment, net based on the geographic location of the Company's facilities is as follows: As of December 31, 2023 2022 (In $ millions) Belgium 112 113 Canada 121 128 China 568 688 Germany 843 937 Italy 74 64 Japan 43 52 Mexico 44 52 Netherlands 48 52 Singapore 82 99 South Korea 64 79 Switzerland 58 73 United Kingdom 118 118 U.S. 3,286 3,032 Other 123 97 Total 5,584 5,584 |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregated Revenue In general, the Company's business segmentation is aligned according to the nature and economic characteristics of its products and customer relationships and provides meaningful disaggregation of each business segment's results of operations. The Company manages its Engineered Materials business segment through its project management pipeline, which is comprised of a broad range of projects that are solutions-based and are tailored to each customer's unique needs. Projects are identified and selected based on success rate and may involve a number of different polymers per project for use in multiple end-use applications. Therefore, the Company is agnostic toward products and end-use markets for the Engineered Materials business segment. The Company manages its Acetyl Chain business segment by leveraging its ability to sell chemicals externally to end-use markets or downstream to its acetate tow, intermediate chemistry, emulsion polymers, redispersible powders and ethylene vinyl acetate polymers businesses. Decisions to sell externally and geographically or downstream and along the Acetyl Chain are based on market demand, trade flows and maximizing the value of its chemicals. Therefore, the Company's strategic focus is on executing within this integrated chain model and less on driving product-specific revenue. Further disaggregation of Net sales by business segment and geographic destination is as follows: Year Ended December 31, 2023 2022 2021 (In $ millions) Engineered Materials North America 1,780 1,197 774 Europe and Africa 1,941 1,538 1,155 Asia-Pacific 2,274 1,180 703 South America 154 109 86 Total 6,149 4,024 2,718 Acetyl Chain North America 1,448 1,713 1,533 Europe and Africa 1,680 1,961 1,914 Asia-Pacific 1,543 1,811 2,214 South America 120 164 158 Total (1) 4,791 5,649 5,819 ______________________________ (1) Excludes intersegment sales of $93 million, $94 million and $75 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Year Ended December 31, 2023 2022 2021 (In $ millions, except share data) Amounts attributable to Celanese Corporation Earnings (loss) from continuing operations 1,969 1,902 1,912 Earnings (loss) from discontinued operations (9) (8) (22) Net earnings (loss) 1,960 1,894 1,890 Weighted average shares - basic 108,848,962 108,380,082 111,224,017 Incremental shares attributable to equity awards (1) 530,702 855,294 860,395 Weighted average shares - diluted 109,379,664 109,235,376 112,084,412 ______________________________ (1) Excludes options to purchase 202,876, 0 and 0 shares of Common Stock for the years ended December 31, 2023, 2022 and 2021, respectively, as their effect would have been antidilutive. Excludes 39,465, 154,172 and 555 equity award shares for the years ended December 31, 2023, 2022 and 2021, respectively, as their effect would have been antidilutive. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net earnings (loss) attributable to Celanese Corporation | $ 1,960 | $ 1,894 | $ 1,890 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | During the quarter ended December 31, 2023, no director or Section 16 officer adopted or terminated any Rule 10b5-1 trading plans or "non-Rule 10b5-1 trading arrangements" as defined in Item 408 of Regulation S-K, except as described in the table below: Type of Trading Arrangement Name and Position Action Applicable Date Rule 10b5-1* Non-Rule 10b5-1** Aggregate Number of Shares of Common Stock to be Sold Aggregate Number of Shares of Common Stock to be Purchased Duration of Trading Arrangement (1) Scott A. Richardson, Executive Vice President and Chief Operating Officer Adoption December 13, 2023 x 4,000 – March 14, 2024 - June 28, 2024 ______________________________ * Contract, instruction or written plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. ** "Non-Rule 10b5-1 trading arrangement" as defined in Item 408(c) of Regulation S-K under the Exchange Act. (1) The plan expires on June 28, 2024, or upon the earlier completion of all authorized transactions under the plan. |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
All Other Individuals [Member] | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Scott A. Richardson [Member] | |
Trading Arrangements, by Individual | |
Name | Scott A. Richardson |
Title | Executive Vice President and Chief Operating Officer |
Rule 10b5-1 Arrangement Adopted | true |
Non-Rule 10b5-1 Arrangement Adopted | false |
Adoption Date | December 13, 2023 |
Arrangement Duration | 106 days |
Aggregate Available | 4,000 |
Summary of Accounting Policies
Summary of Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Purchase Accounting | Purchase Accounting The Company recognizes the identifiable tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The excess of purchase price over the aggregate fair values is recorded as goodwill. Intangible assets are valued using the relief from royalty, multi-period excess earnings 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 method include discount rates, royalty rates, growth rates, sales projections and terminal value rates. Key assumptions used in the multi-period excess earnings method include discount rates, retention rates, growth rates, sales projections, expense projections and contributory asset charges. Key assumptions used in the discounted cash flow valuation model include discount rates, growth rates, tax rates, cash flow projections and terminal value rates. All of these methodologies require significant management judgment and, therefore, are susceptible to change. The Company calculates the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed to allocate the purchase price at the acquisition date. The Company may use the assistance of third-party valuation consultants. |
Recoverability of Goodwill and Indefinite-Lived Assets | Recoverability of Goodwill and Indefinite-Lived Assets The Company assesses the recoverability of the carrying amount of its reporting unit goodwill and other 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. Recoverability of the carrying amount of goodwill is measured at the reporting unit level. 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 in Other (charges) gains, net in the consolidated statements of operations. When assessing the recoverability of goodwill and other indefinite-lived intangible assets, the Company may first assess qualitative factors in determining whether it is more likely than not that the fair value of a reporting unit, including goodwill, or another indefinite-lived intangible asset is less than its carrying amount. The qualitative evaluation is an assessment of multiple factors, including the current operating environment, financial performance and market considerations. The Company may elect to bypass this qualitative assessment for some or all of its reporting units or other indefinite-lived intangible assets and perform a quantitative test, based on management's judgment. In performing a quantitative analysis of goodwill, 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. Management tests other 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. |
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 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. The Company engages third-party consultants to assist with this process. In the U.S., 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. Outside of the U.S., a similar approach of discounting pension and other postretirement benefit plan liabilities is used based on the high quality corporate bonds available in each market. There are some exceptions to this methodology, namely in locations where there is a sparse corporate bond market, and in such cases the discount rate takes into account yields of government bonds at the appropriate duration. • 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. • Investment Policies and Strategies The investment objectives for the Company's pension plans are to earn, over a moving 20-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 U.S. and global equity and fixed income markets, and to manage the risks and returns of the plans through the use of multiple managers and strategies. The fixed income strategies are designed to reduce liability-related interest rate risk by investing in bonds that match the duration and credit quality of the plan liabilities. 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 approximately 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. |
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, remaining carryforward periods, 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 and technical authorities in the relevant jurisdiction. The Company recognizes interest and penalties related to uncertain tax positions in Income tax (provision) benefit in the consolidated statements of operations. |
Consolidation Principles | Consolidation Principles The consolidated financial statements have been prepared in accordance with U.S. 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 U.S. 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. |
Variable Interest Entities | Variable Interest Entities The Company assesses whether it has a variable interest in legal entities in which it has a financial relationship and, if so, whether or not those entities are variable interest entities ("VIEs"). A VIE is an entity with insufficient equity at risk for the entity to finance its activities without additional subordinated financial support or in which equity investors lack the characteristics of a controlling financial interest. If an entity is determined to be a VIE, the Company evaluates whether it is the primary beneficiary. The primary beneficiary analysis is a qualitative analysis based on power and economics. The Company concludes that it is the primary beneficiary and consolidates the VIE if the Company has both (i) the power to direct the activities of the VIE that most significantly influence the VIE's economic performance, and (ii) the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE. The Company has a joint venture, Fairway Methanol LLC ("Fairway"), with Mitsui & Co., Ltd., of Tokyo, Japan ("Mitsui"), in which the Company owns 50% of Fairway, for the production of methanol at the Company's integrated chemical plant in Clear Lake, Texas. Fairway is a VIE in which the Company is the primary beneficiary. 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 Chain segment. As of December 31, 2023 and 2022, the carrying amount of the total assets associated with Fairway included in the consolidated balance sheets were $626 million and $627 million, respectively, made up primarily of $529 million and $544 million, respectively, of property, plant and equipment. 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 finance 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, 2023 and 2022 were $208 million and $223 million, respectively, related primarily to the recovery of capital expenditures for certain property, plant and equipment. |
Fair Value Measurements | 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 pooled-type investments and registered investment companies, 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 |
Cash and Cash Equivalents | Cash and Cash Equivalents All highly liquid investments with original maturities of three months or less are considered cash equivalents. |
Inventories | Inventories Inventories, including stores and supplies, are stated at the lower of cost and net realizable value. Cost for inventories is determined using the first-in, first-out 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 Affiliates | Investments in Affiliates Investments in equity securities 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 in equity securities where the Company does not exercise significant influence are accounted for at fair value or, if such investments do not have a readily determinable fair value, an election may be made to measure them at cost after considering observable price changes for similar instruments, minus impairment, if any. 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 U.S. GAAP. Further, these investments were determined not to have a readily determinable fair value. Accordingly, these investments are accounted for using the alternative measure described above. 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 finance 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, tax 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 in Other (charges) gains, net in the consolidated statements of operations. |
Definite-lived Intangible Assets | 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 six |
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 derivative instruments other than foreign currency forwards and swaps is recorded as an asset or liability on a net basis at the balance sheet date. • Interest Rate Risk Management The Company entered into a forward-starting interest rate swap to mitigate the risk of variability in the benchmark interest rate for debt issued in 2021. The interest rate swap agreement was designated as a cash flow hedge. Accordingly, to the extent the cash flow hedges were effective, changes in the fair value of the interest rate swap were included in gain (loss) from cash flow hedges within Accumulated other comprehensive income (loss), net in the consolidated balance sheets. • 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 generally 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. The Company entered into cross-currency swaps to synthetically convert certain USD borrowings to EUR borrowings in 2019 and 2022. The cross-currency swap agreements are designated as a net investment hedge. Accordingly, to the extent the net investment hedges are effective, changes in the fair value of the cross-currency swap are 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. The Company entered into cross-currency swaps to effectively convert certain USD borrowings to JPY and EUR borrowings in 2023. The cross-currency swap agreements were designated as fair value hedges. Accordingly, to the extent the fair value hedges are effective, changes in the fair value attributable to changes in the excluded components are included in gain (loss) from fair value hedges within Accumulated other comprehensive income (loss), net in the consolidated balance sheets. The value of the excluded components is recognized in earnings using a systematic and rational method by accruing the current-period swap settlements into earnings each reporting period. • 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. The Company also uses commodity swaps to hedge the risk of fluctuating price changes in certain raw materials and in which physical settlement does not occur. These commodity swaps fix the variable fee component of the price of certain commodities. All or a portion of these commodity swap agreements may be designated as cash flow hedges. Accordingly, to the extent the cash flow hedges are effective, changes in the fair value of commodity swaps are included in gain (loss) from cash flow hedges within Accumulated other comprehensive income (loss), net in the consolidated balance sheets. Gains and losses are reclassified to earnings in the period that the hedged item affects earnings. |
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 liability 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 liabilities 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. |
Loss Contingencies | Loss Contingencies When determinable, the Company accrues a liability for loss contingencies deemed probable of occurring for which an amount can be reasonably estimated. For certain potentially material loss contingencies, the Company is sometimes unable to estimate and accrue a loss deemed probable of occurring. For such matters, the Company discloses an estimate of the possible loss, range of loss or a statement that such estimate cannot be made. Because the Company's evaluation and assessment of critical facts and circumstances surrounding a contingent loss often occurs well in advance of the matter's final determination, there is an inherent subjectivity and unpredictability involved in estimating, accounting for and reporting contingent losses. Generally, the less progress made in the resolution of a contingent loss matter or the broader the range of potential outcomes, the more difficult it is for the Company to estimate, accrue and report a loss. For example, the Company may disclose certain information about a plaintiff's legal claim against the Company that is alleged in the plaintiff's pleadings or otherwise publicly available. While information of this type may provide more insight into the potential magnitude of a matter, it may not necessarily be indicative of the Company's estimate of probable or possible loss. In addition, some of the Company's contingent loss exposures may be eligible for reimbursement under the provisions of its insurance coverage. The Company does not consider the potential availability of insurance coverage in determining its probable or possible loss estimates. As a result of these factors among others, the Company's ultimate contingent loss exposure may be higher or lower, and possibly materially so, than the Company's recorded probable loss accruals and disclosures of possible losses. |
Revenue Recognition | Revenue Recognition Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied. The majority of the Company's contracts have a single performance obligation to transfer products. Accordingly, the Company recognizes revenue when title and risk of loss have been transferred to the customer, generally at the time of shipment of products. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products and is generally based upon a negotiated, formula, list or fixed price. The Company sells its products both directly to customers and through distributors generally under agreements with payment terms typically less than 90 days. The Company has elected to account for shipping and handling as activities to fulfill the promise to transfer the good. As such, 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. The Company has elected to exclude from Net sales any value add, sales and other taxes which it collects concurrent with revenue-producing activities. • Contract Estimates The nature of certain of the Company's contracts gives rise to variable consideration, which may be constrained, including retrospective volume-based rebates to certain customers. The Company issues retrospective volume-based rebates to customers when they purchase a certain volume level, and the rebates are applied retroactively to prior purchases. The Company also issues prospective volume-based rebates to customers when they purchase a certain volume level, and the rebates are applied to future purchases. Prospective volume-based rebates represent a material right within the contract and therefore are considered to be separate performance obligations. For both retrospective and prospective volume-based rebates, the Company estimates the level of volumes based on anticipated purchases at the beginning of the period and records a rebate accrual for each purchase toward the requisite rebate volume. These estimated rebates, which are reassessed each reporting period, are included in the transaction price of the Company's contracts with customers as a reduction to Net sales and are included in Current Other liabilities in the consolidated balance sheets ( Note 10 ). The majority of the Company's revenue is derived from contracts (i) with an original expected length of one year or less and (ii) contracts for which it recognizes revenue at the amount in which it has the right to invoice as product is delivered. The Company has elected the practical expedient not to disclose the value of remaining performance obligations associated with these types of contracts. However, the Company has certain contracts that represent take-or-pay revenue arrangements in which the Company's performance obligations extend over multiple years. As of December 31, 2023, the Company had $1.2 billion of remaining performance obligations related to take-or-pay contracts. The Company expects to recognize approximately $446 million of its remaining performance obligations as Net sales in 2024, $398 million in 2025, $152 million in 2026 and the balance thereafter. The Company has certain contracts which contain performance obligations which are immaterial in the context of the contract with the customer. The Company has elected the practical expedient not to assess whether these promised goods or services are performance obligations. • Contract Balances Contract liabilities primarily relate to advances or deposits received from the Company's customers before revenue is recognized. These amounts are recorded as deferred revenue and are included in Noncurrent Other liabilities in the consolidated balance sheets. The Company does not have any material contract assets as of December 31, 2023. |
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. |
Leases | Leases The Company leases certain real estate, fleet assets, warehouses and equipment. Leases with an initial term of 12 months or less ("short-term leases") are not recorded on the consolidated balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company determines if an arrangement is a lease at inception. Operating lease right-of-use ("ROU") assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Company's leases do not provide an implicit rate of return, the Company uses its imputed collateralized rate based on the information available at commencement date in determining the present value of lease payments. The estimated rate is based on a risk-free rate plus a risk-adjusted margin. Operating lease ROU assets are comprised of the lease liability plus prepaid rents and are reduced by lease incentives or deferred rents. The Company has lease agreements with non-lease components which are not bifurcated. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one |
Functional and Reporting Currencies | Functional and Reporting Currencies For the Company's international operations where the functional currency is other than the U.S. 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. |
Accounting Changes and Error Co
Accounting Changes and Error Corrections (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements, Policy | The following table provides a brief description of recent Accounting Standard Updates ("ASU") issued by the Financial Accounting Standards Board ("FASB"): Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. The new guidance requires an entity to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. Additionally, the guidance requires an entity to disclose annual income taxes paid (net of refunds received) disaggregated by federal (national), state and foreign taxes and disaggregate the information by jurisdiction based on a quantitative threshold. The guidance also requires an entity to disclose income (loss) from continuing operations before income tax expense (benefit) disaggregated between domestic and foreign and income tax expense (benefit) from continuing operations disaggregated by federal (national), state and foreign. Effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of the adoption on its financial statement disclosures. In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures. The new guidance requires an entity to disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within segment profit or loss, as well as an amount of other segment items by reportable segment and a description of its composition. Additionally, the guidance requires an entity to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The update is required to be applied retrospectively to prior periods presented, based on the significant segment expense categories identified and disclosed in the period of adoption. Effective for annual periods beginning after December 15, 2023, and for interim periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of the adoption on its financial statement disclosures. |
Summary of Accounting Policie_2
Summary of Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Depreciable 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 |
Acquisitions, Dispositions an_2
Acquisitions, Dispositions and Plant Closures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Acquisitions, Dispositions and Plant Closures [Abstract] | |
Business Acquisition, Pro Forma Information | Year Ended 2022 2021 (In $ millions) Unaudited Consolidated Pro Forma Results Proforma Net sales 12,614 12,069 Proforma Earnings (loss) from continuing operations before tax 888 1,843 |
Schedule of Restructuring and Related Costs | The exit and shutdown costs related to the closure of the PA66 and HPN polymerization units in Uentrop, Germany were as follows: Year Ended December 31, 2023 (In $ millions) Accelerated depreciation expense 14 Loss on disposition of assets, net 4 Total 18 |
Receivables, Net Receivables, N
Receivables, Net Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Trade Receivables - Third Party and Affiliates, Net | As of December 31, 2023 2022 (In $ millions) Trade receivables - third party and affiliates 1,255 1,394 Allowance for doubtful accounts - third party and affiliates (12) (15) Trade receivables - third party and affiliates, net 1,243 1,379 |
Schedule of Non-trade Receivables, Net | As of December 31, 2023 2022 (In $ millions) Non-income taxes receivable 270 334 Income taxes receivable 57 26 Other (1) 214 315 Non-trade receivables, net 541 675 ____________________________ (1) Includes $42 million and $193 million of non-trade receivables related to the M&M Acquisition as of December 31, 2023 and December 31, 2022, respectively. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | As of December 31, 2023 2022 (In $ millions) Finished goods 1,604 1,820 Work-in-process 160 202 Raw materials and supplies 593 786 Total 2,357 2,808 |
Investments in Affiliates (Tabl
Investments in Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Schedule of Equity Method Investments | Equity method investments by business segment are as follows: Carrying Share of Dividends and 2023 2022 2023 2022 2021 2023 2022 2021 (In $ millions) Engineered Materials (1) 898 760 88 209 133 (145) (204) (98) Other Activities 56 53 14 11 13 (12) (13) (14) Total 954 813 102 220 146 (157) (217) (112) ____________________________ (1) Engineered Materials includes an equity method investment with losses in excess of its carrying amount due to the Company's guarantee of various debt obligations under agreements with third parties related to an equity affiliate ( Note 19 ). This equity method investment was recorded in Current Other liabilities ( Note 10 ) as of December 31, 2023 and December 31, 2022. |
Schedule of Equity Securities without Readily Determinable Fair Value | Equity investments without readily determinable fair values by business segment are as follows: Carrying Dividend 2023 2022 2023 2022 2021 (In $ millions) Acetyl Chain 165 165 125 132 146 Other Activities 5 5 1 1 1 Total 170 170 126 133 147 |
Schedule of Transactions with Affiliates | Transactions and balances with affiliates are as follows: Year Ended December 31, 2023 2022 2021 (In $ millions) Purchases 490 590 334 Sales and other credits 212 72 74 As of December 31, 2023 2022 (In $ millions) Trade receivables 7 8 Non-trade receivables 40 36 Current notes receivables 57 — Total due from affiliates 104 44 Short-term borrowings (1) 23 — Trade payables 52 36 Current Other liabilities 34 37 Total due to affiliates 109 73 ______________________________ (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_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of Property, Plant and Equipment, Net | As of December 31, 2023 2022 (In $ millions) Land 260 291 Land improvements 85 83 Buildings and building improvements 1,082 1,062 Machinery and equipment 7,157 6,897 Construction in progress 1,080 938 Gross asset value 9,664 9,271 Accumulated depreciation (4,080) (3,687) Net book value 5,584 5,584 |
Schedule of Capitalized Interest and Depreciation Expense | Capitalized interest costs and depreciation expense are as follows: Year Ended December 31, 2023 2022 2021 (In $ millions) Capitalized interest 37 18 12 Depreciation expense 540 399 346 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill Engineered Acetyl Total (In $ millions) As of December 31, 2021 1,030 382 1,412 Acquisitions ( Note 4 ) 5,781 — 5,781 Exchange rate changes (36) (15) (51) As of December 31, 2022 6,775 367 7,142 Acquisitions ( Note 4 ) (107) — (107) Dispositions (1) (80) — (80) Exchange rate changes 14 8 22 As of December 31, 2023 (2) 6,602 375 6,977 ______________________________ (1) Related to the formation of the Nutrinova joint venture ( Note 4 ). (2) There were no accumulated impairment losses as of December 31, 2023. |
Schedule of Finite-Lived Intangible Assets, Net | Finite-lived intangible assets are as follows: Licenses Customer- Developed Covenants Total (In $ millions) Gross Asset Value As of December 31, 2021 45 996 45 55 1,141 Acquisitions (1) — 1,509 550 — 2,059 Disposition — (2) — — (2) Accumulated impairment losses — (4) — — (4) Exchange rate changes (3) (44) 6 — (41) As of December 31, 2022 42 2,455 601 55 3,153 Disposition (2) — (60) (1) — (61) Exchange rate changes (1) 42 1 — 42 As of December 31, 2023 41 2,437 601 55 3,134 Accumulated Amortization As of December 31, 2021 (41) (543) (42) (39) (665) Amortization (1) (51) (9) (1) (62) Disposition — 2 — — 2 Accumulated impairment losses — 2 — — 2 Exchange rate changes 3 23 1 — 27 As of December 31, 2022 (39) (567) (50) (40) (696) Amortization — (120) (43) (1) (164) Disposition (2) — 59 1 — 60 Exchange rate changes 1 (11) (3) (1) (14) As of December 31, 2023 (38) (639) (95) (42) (814) Net book value 3 1,798 506 13 2,320 ______________________________ (1) Primarily related to $1.5 billion of customer-related intangible assets and $550 million of developed technology acquired as part of the M&M Acquisition with weighted average amortization periods of 20 years and 13 years, respectively, and 18 years in total ( Note 4 ). (2) Primarily related to the formation of the Nutrinova joint venture ( Note 4 ). |
Schedule of Indefinite-Lived Intangible Assets, Net | Indefinite-lived intangible assets are as follows: Trademarks (In $ millions) As of December 31, 2021 259 Acquisitions ( Note 4 ) 1,400 Exchange rate changes (11) As of December 31, 2022 1,648 Dispositions (1) (14) Exchange rate changes 21 As of December 31, 2023 1,655 ______________________________ (1) Related to the formation of the Nutrinova joint venture ( Note 4 ). |
Schedule of Estimated Amortization Expense | Estimated amortization expense for the succeeding five fiscal years is as follows: (In $ millions) 2024 161 2025 161 2026 160 2027 160 2028 160 |
Current Other Liabilities (Tabl
Current Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities, Current [Abstract] | |
Schedule of Current Other Liabilities | As of December 31, 2023 2022 (In $ millions) Benefit obligations ( Note 12 ) 25 25 Customer rebates 96 101 Derivatives ( Note 17 ) 90 63 Interest ( Note 11 ) 246 265 Legal ( Note 19 ) 34 21 Operating leases ( Note 16 ) 89 83 Restructuring ( Note 24 ) 18 6 Salaries and benefits 175 151 Sales and use tax/foreign withholding tax payable 128 108 Investment in affiliates ( Note 7 ) 96 79 Other (1) 157 299 Total 1,154 1,201 ____________________________ (1) Includes $18 million and $166 million payable to DuPont related to the M&M Acquisition and transition activities as of December 31, 2023 and December 31, 2022, respectively. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | As of December 31, 2023 2022 (In $ millions) Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates Current installments of long-term debt 1,025 506 Short-term borrowings, including amounts due to affiliates (1) 146 500 Revolving credit facility (2) 212 300 Total 1,383 1,306 ______________________________ (1) The weighted average interest rate was 2.9% and 5.8% as of December 31, 2023 and 2022, respectively. (2) The weighted average interest rate was 3.4% and 5.8% as of December 31, 2023 and 2022, respectively. |
Schedule of Long-term Debt | As of December 31, 2023 2022 (In $ millions) Long-Term Debt Senior unsecured notes due 2023, interest rate of 1.125% — 480 Senior unsecured notes due 2024, interest rate of 3.500% 473 499 Senior unsecured notes due 2024, interest rate of 5.900% 527 2,000 Senior unsecured notes due 2025, interest rate of 1.250% 331 320 Senior unsecured notes due 2025, interest rate of 6.050% 1,000 1,750 Senior unsecured term loan due 2025 (1) — 750 Senior unsecured notes due 2026, interest rate of 1.400% 400 400 Senior unsecured notes due 2026, interest rate of 4.777% 1,105 1,067 Senior unsecured notes due 2027, interest rate of 2.125% 551 531 Senior unsecured notes due 2027, interest rate of 6.165% 2,000 2,000 Senior unsecured term loan due 2027 (1) 880 1,000 Senior unsecured notes due 2028, interest rate of 0.625% 552 533 Senior unsecured notes due 2028, interest rate of 6.350% 1,000 — Senior unsecured notes due 2029, interest rate of 5.337% 552 533 Senior unsecured notes due 2029, interest rate of 6.330% 750 750 Senior unsecured notes due 2030, interest rate of 6.550% 999 — Senior unsecured notes due 2032, interest rate of 6.379% 1,000 1,000 Senior unsecured notes due 2033, interest rate of 6.700% 1,000 — Pollution control and industrial revenue bonds due at various dates through 2030 (2) 127 164 Bank loans due at various dates through 2030 (3) 5 4 Obligations under finance leases due at various dates through 2054 148 172 Subtotal 13,400 13,953 Unamortized deferred financing costs (4) (74) (74) Current installments of long-term debt (1,025) (506) Total 12,301 13,373 ______________________________ (1) The interest rate was 6.943% and 5.934% as of December 31, 2023 and 2022, respectively. (2) Interest rates range from 4.05% to 5.00%. (3) The weighted average interest rate was 2.6% and 1.3% as of December 31, 2023 and 2022, respectively. (4) Related to the Company's long-term debt, excluding obligations under finance leases. |
Schedule of Balances Available for Borrowing | The Company's debt balances and amounts available for borrowing under its senior unsecured revolving credit facilities are as follows: As of (In $ millions) Revolving Credit Facility Borrowings outstanding — Available for borrowing 1,750 China Revolving Credit Facility Borrowings outstanding 212 Available for borrowing 34 |
Schedule Of Acquisition Notes | In July 2022, Celanese U.S. completed a public offering of senior unsecured notes registered under the Securities Act as follows (collectively, the "Acquisition Notes"): Maturity Date Aggregate Principal Discount to Par Interest Rate (In millions) July 5, 2024 $ 2,000 99.987% 5.900% March 15, 2025 $ 1,750 99.993% 6.050% July 19, 2026 € 1,000 100.000% 4.777% July 15, 2027 $ 2,000 100.000% 6.165% January 19, 2029 € 500 99.996% 5.337% July 15, 2029 $ 750 100.000% 6.330% July 15, 2032 $ 1,000 100.000% 6.379% |
Schedule of Senior Unsecured Notes Offering | On August 24, 2023, Celanese U.S. completed a public offering of senior unsecured notes registered under the Securities Act as follows (collectively, the "2023 Offering"): Maturity Date Aggregate Principal Discount to Par Interest Rate (In $ millions) November 15, 2028 1,000 99.986% 6.350% November 15, 2030 999 99.950% 6.550% November 15, 2033 1,000 99.992% 6.700% |
Schedule of Cash Tender Offer | On August 25, 2023, Celanese U.S. completed a cash tender offer for $2.25 billion in aggregate principal amount (the "Tender Offer") as follows: Maturity Date Aggregate Principal Amount Tendered Purchase price per $1,000 principal amount Total Tender Offer Consideration Accrued and Unpaid Interest (In $ millions) (In $ millions) June 30, 2024 1,473 $ 999.92 1,473 12 March 15, 2025 750 $ 1,002.85 752 20 April 30, 2024 27 $ 983.95 27 — |
Schedule of Principle Payments | Principal payments scheduled to be made on the Company's debt, including short-term borrowings, are as follows: (In $ millions) 2024 1,383 2025 1,395 2026 1,527 2027 3,449 2028 1,567 Thereafter 4,437 Total 13,758 |
Benefit Obligations (Tables)
Benefit Obligations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
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, 2023 2022 2021 (In $ millions) Defined contribution plans 83 62 47 |
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 2023 2022 2023 2022 (In $ millions) Change in Projected Benefit Obligation Projected benefit obligation as of beginning of period 2,858 3,488 38 51 Service cost 11 12 — 1 Interest cost 132 67 2 1 Net actuarial (gain) loss (1) 144 (662) 2 (10) Acquisitions (2) — 198 — — Divestiture (3) (4) — — — Settlements (16) — — — Benefits paid (226) (220) (3) (3) Exchange rate changes 24 (25) 1 (2) Projected benefit obligation as of end of period 2,923 2,858 40 38 Change in Plan Assets Fair value of plan assets as of beginning of period 2,625 3,183 — — Actual return on plan assets 213 (588) — — Employer contributions 46 45 3 3 Acquisitions (2) — 211 — — Divestiture (3) (2) — — — Settlements (16) — — — Benefits paid (4) (226) (220) (3) (3) Exchange rate changes 12 (6) — — Fair value of plan assets as of end of period 2,652 2,625 — — Funded status as of end of period (271) (233) (40) (38) Amounts Recognized in the Consolidated Balance Sheets Consist of: Noncurrent Other assets 166 160 — — Current Other liabilities (22) (21) (3) (3) Benefit obligations (415) (372) (37) (35) Net amount recognized (271) (233) (40) (38) Amounts Recognized in Accumulated Other Comprehensive Income Consist of: Net actuarial (gain) loss (5) 24 13 — — Prior service (benefit) cost — — (1) (1) Net amount recognized 24 13 (1) (1) ______________________________ (1) Primarily relates to changes in discount rates. (2) Represents plan obligations and assets related to the M&M Acquisition ( Note 4 ). (3) Represents plan obligations and assets contributed to the Nutrinova joint venture ( Note 4 ). (4) Includes benefit payments to nonqualified pension plans of $20 million and $20 million as of December 31, 2023 and 2022, respectively. (5) Relates to the pension plans of the Company's equity method investments. |
Schedule of Percentage of US and International Projected Benefit Obligation | The percentage of U.S. and international projected benefit obligation at the end of the period is as follows: Pension Benefits Postretirement Benefits 2023 2022 2023 2022 (In percentages) U.S. plans 71 73 37 50 International plans 29 27 63 50 Total 100 100 100 100 |
Schedule of Percentage of US and International Fair Value of Plan Assets | The percentage of U.S. and international fair value of plan assets at the end of the period is as follows: Pension Benefits 2023 2022 (In percentages) U.S. plans 75 77 International plans 25 23 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, 2023 2022 (In $ millions) Projected benefit obligation 788 669 Fair value of plan assets 352 277 Other postretirement plans with accumulated postretirement benefit obligations in excess of plan assets are as follows: As of December 31, 2023 2022 (In $ millions) Accumulated postretirement benefit obligation 40 38 |
Schedule of Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets | Pension plans with accumulated benefit obligations in excess of plan assets are as follows: As of December 31, 2023 2022 (In $ millions) Accumulated benefit obligation 738 649 Fair value of plan assets 329 270 Other postretirement plans with accumulated postretirement benefit obligations in excess of plan assets are as follows: As of December 31, 2023 2022 (In $ millions) Accumulated postretirement benefit obligation 40 38 |
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, 2023 2022 (In $ millions) Accumulated benefit obligation 2,882 2,837 |
Schedule of Net Periodic Benefit Costs | The components of net periodic benefit cost are as follows: Pension Benefits Postretirement Benefits 2023 2022 2021 2023 2022 2021 (In $ millions) Service cost 11 12 13 — 1 1 Interest cost 132 67 54 2 1 1 Expected return on plan assets (132) (166) (205) — — — Recognized actuarial (gain) loss 63 91 47 3 (10) (6) Settlement (gain) loss 1 — 3 — — — Total 75 4 (88) 5 (8) (4) |
Schedule of Nonqualified Pension Plans Funded with Nonqualified Trusts | The Company maintains nonqualified pension plans funded with nonqualified trusts for certain U.S. employees as follows: As of December 31, 2023 2022 (In $ millions) Nonqualified Trust Assets Marketable securities 5 5 Noncurrent Other assets, consisting of insurance contracts 21 22 Nonqualified Pension Obligations Current Other liabilities 18 18 Benefit obligations 149 152 |
Schedule of Expense Related to Nonqualified Pension Plans Included in Net Periodic Benefit Cost, Excluding Returns on Assets | (Income) 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, 2023 2022 2021 (In $ millions) Total 16 (34) 3 |
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 2023 2022 2023 2022 (In percentages) Discount Rate Obligations U.S. plans 5.1 5.5 5.1 5.4 International plans 3.1 3.4 4.1 4.7 Combined 4.5 4.9 4.5 5.1 Rate of Compensation Increase U.S. plans N/A N/A International plans 2.8 2.7 Combined 2.8 2.7 The principal weighted average assumptions used to determine net periodic benefit cost are as follows: Pension Benefits Postretirement Benefits 2023 2022 2021 2023 2022 2021 (In percentages) Discount Rate Obligations U.S. plans 5.5 2.8 2.4 5.4 2.7 2.2 International plans 3.4 1.4 1.0 4.7 2.4 1.9 Combined 4.9 2.5 2.1 5.1 2.5 2.1 Discount Rate Service Cost U.S. plans N/A N/A N/A 5.9 3.5 N/A International plans 3.5 1.5 1.1 4.4 2.1 1.9 Combined 3.5 1.5 1.1 4.5 2.1 1.9 Discount Rate Interest Cost U.S. plans 5.4 2.2 1.7 5.3 2.0 1.5 International plans 3.4 1.2 0.7 4.7 2.1 1.5 Combined 4.8 2.0 1.4 5.0 2.1 1.5 Expected Return on Plan Assets U.S. plans 5.5 5.5 6.5 International plans 4.4 4.9 4.8 Combined 5.2 5.4 6.3 Rate of Compensation Increase U.S. plans N/A N/A N/A International plans 2.8 2.5 2.5 Combined 2.8 2.5 2.5 Interest Crediting Rate U.S. plans 4.3 1.9 1.4 International plans 1.0 1.0 1.0 Combined 4.3 1.9 1.4 |
Schedule of Health Care Cost Trend Rates | The Company's health care cost trend assumptions for U.S. postretirement medical plan's net periodic benefit cost are as follows: As of December 31, 2023 2022 2021 (In percentages, except year) Health care cost trend rate assumed for next year 7.3 7.5 7.3 Health care cost trend ultimate rate 5.0 5.0 5.0 Health care cost trend ultimate rate year 2032 2032 2031 |
Schedule of Weighted Average Target Asset Allocations | The weighted average target asset allocations for the Company's pension plans in 2023 are as follows: U.S. International (In percentages) Bonds - domestic to plans 84 36 Equities - domestic to plans 8 21 Equities - international to plans 8 8 Other — 35 Total 100 100 |
Schedule of Fair Values of Pension Plan Assets | Fair Value Measurement Quoted Prices in Significant Total As of December 31, 2023 2022 2023 2022 2023 2022 (In $ millions) Assets Cash and cash equivalents 7 7 — — 7 7 Derivatives Swaps — — 60 4 60 4 Equity securities U.S. companies 21 26 — — 21 26 International companies 148 135 — — 148 135 Fixed income Corporate debt — — 686 662 686 662 Treasuries, other debt 87 162 1,013 968 1,100 1,130 Mortgage backed securities — — 13 12 13 12 Insurance contracts — — 104 98 104 98 Other 3 4 19 21 22 25 Total investments, at fair value (1) 266 334 1,895 1,765 2,161 2,099 Liabilities Derivatives Swaps — — 60 4 60 4 Total liabilities — — 60 4 60 4 Total net assets (2) 266 334 1,835 1,761 2,101 2,095 ______________________________ (1) 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, 2023 excludes investments in pooled-type investments, registered investment companies and short-term investment funds with fair values of $460 million, $43 million and $31 million, respectively. Total investments, at fair value, for the year ended December 31, 2022 excludes investments in pooled-type investments, registered investment companies and short-term investment funds with fair values of $441 million, $41 million and $41 million, respectively. (2) Total net assets excludes non-financial plan receivables and payables of $22 million and $5 million, respectively, as of December 31, 2023 and $17 million and $10 million, respectively, as of December 31, 2022. 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 (In $ millions) Cash contributions to defined benefit pension plans 29 Benefit payments to nonqualified pension plans 19 Benefit payments to other postretirement benefit plans 3 |
Schedule of Pension Benefits Expected to be Paid from the Plans or From the Company's Assets | Pension and postretirement benefits expected to be paid are as follows: Pension Benefit Payments (1) Company Portion of Postretirement Benefit Cost (2) (In $ millions) 2024 238 3 2025 234 3 2026 232 3 2027 226 3 2028 224 2 2029-2033 1,044 11 ______________________________ (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, 2023 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of Environmental Remediation Reserves | The components of environmental remediation liabilities As of December 31, 2023 2022 (In $ millions) Demerger obligations ( Note 19 ) 14 20 Divestiture obligations ( Note 19 ) 13 14 Active sites 25 21 U.S. Superfund sites 8 10 Other environmental remediation liabilities 2 2 Total 62 67 |
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, 2023 Ownership Liability Reserves (1) (In percentages) (In $ millions) InfraServ GmbH & Co. Gendorf KG 30 10 8 InfraServ GmbH & Co. Hoechst KG 31 40 65 Yncoris GmbH & Co. KG 22 22 1 ______________________________ (1) Gross reserves maintained by the respective entity. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Treasury Stock | The share repurchase activity pursuant to this authorization is as follows: Year Ended December 31, Total From 2023 2022 2021 Shares repurchased — — 6,556,378 69,324,429 Average purchase price per share $ — $ — $ 152.53 $ 83.71 Amount spent on repurchased shares (in $ millions) $ — $ — $ 1,000 $ 5,803 Aggregate Board of Directors repurchase authorizations during the period (in $ millions) $ — $ — $ 1,000 $ 6,866 |
Schedule of Components of Other Comprehensive Income (Loss), Net | Year Ended December 31, 2023 2022 2021 Gross Income Net Gross Income Net Gross Income Net (In $ millions) Foreign currency translation (275) 62 (213) (240) 23 (217) 20 (31) (11) Gain (loss) on derivative hedges (12) 6 (6) 26 (5) 21 34 (21) 13 Pension and postretirement benefits gain (loss) (8) 1 (7) 7 — 7 (3) — (3) Total (295) 69 (226) (207) 18 (189) 51 (52) (1) |
Schedule of Adjustments to Accumulated Other Comprehensive Income (Loss), Net | Adjustments to Accumulated other comprehensive income (loss), net, are as follows: Foreign Gain (Loss) on Derivative Hedges ( Note 17 ) Pension and Postretirement Benefits Gain (Loss) ( Note 12 ) Accumulated (In $ millions) As of December 31, 2020 (260) (56) (12) (328) Other comprehensive income (loss) before reclassifications 20 34 (3) 51 Income tax (provision) benefit (31) (21) — (52) As of December 31, 2021 (271) (43) (15) (329) Other comprehensive income (loss) before reclassifications (240) 43 7 (190) Amounts reclassified from accumulated other comprehensive income (loss) — (17) — (17) Income tax (provision) benefit 23 (5) — 18 As of December 31, 2022 (488) (22) (8) (518) Other comprehensive income (loss) before reclassifications (275) (3) (8) (286) Amounts reclassified from accumulated other comprehensive income (loss) — (9) — (9) Income tax (provision) benefit 62 6 1 69 As of December 31, 2023 (701) (28) (15) (744) |
Other (Charges) Gains, Net (Tab
Other (Charges) Gains, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Other (Charges) Gains, Net | Year Ended December 31, 2023 2022 2021 (In $ millions) Restructuring (1) (52) (6) (5) Asset impairments (15) (14) (2) Plant/office closures (1) 12 10 Total (68) (8) 3 ______________________________ (1) Includes employee termination benefits primarily related to Company-wide business optimization projects during the year ended December 31, 2023. |
Schedule of Restructuring Reserve | The changes in the restructuring liabilities by business segment are as follows: Engineered Acetyl Other Total (In $ millions) Employee Termination Benefits As of December 31, 2022 4 1 1 6 Additions 40 4 8 52 Cash payments (31) (3) (6) (40) As of December 31, 2023 13 2 3 18 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 2021 (In $ millions) U.S. (163) (292) 202 International 1,346 1,713 2,046 Total 1,183 1,421 2,248 |
Schedule of Income Tax Provision (Benefit) | The income tax provision (benefit) consists of the following: Year Ended December 31, 2023 2022 2021 (In $ millions) Current U.S. 8 54 — International 162 306 323 Total 170 360 323 Deferred U.S. (178) (261) (16) International (782) (588) 23 Total (960) (849) 7 Total (790) (489) 330 |
Schedule of Effective Tax Rate Reconciliation | A reconciliation of the significant differences between the U.S. federal statutory tax rate of 21% and the effective income tax rate on income from continuing operations is as follows: Year Ended December 31, 2023 2022 2021 (In $ millions, except percentages) Income tax provision computed at U.S. federal statutory tax rate 248 298 472 Change in valuation allowance (150) (15) (50) Equity income and dividends (27) (47) (29) (Income) expense not resulting in tax impact, net (9) 2 (53) U.S. tax effect of foreign earnings and dividends 384 162 332 Foreign tax credits (73) (120) (328) Other foreign tax rate differentials (108) (43) (66) Legislative changes (44) — (8) State income taxes, net of federal benefit (8) (2) 6 Recognition of basis differences in investments in affiliates — 6 — Asset transfers between wholly owned foreign affiliates (839) (816) — Other, net (164) 86 54 Income tax provision (benefit) (790) (489) 330 Effective income tax rate (67) % (34) % 15 % |
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, 2023 2022 (In $ millions) Deferred Tax Assets Pension and postretirement obligations 61 61 Accrued expenses 56 80 Inventory (13) (11) Net operating loss carryforwards 783 528 Tax credit carryforwards 135 359 Intangibles and other 737 400 Subtotal 1,759 1,417 Valuation allowance (1) (656) (781) Total 1,103 636 Deferred Tax Liabilities Depreciation and amortization 152 743 Investments in affiliates 188 171 Other 85 156 Total 425 1,070 Net deferred tax assets (liabilities) 678 (434) ______________________________ (1) Includes deferred tax asset valuation allowances for the Company's deferred tax assets in Luxembourg, the U.S., Spain, China, the United Kingdom, France, Mexico, Singapore, Canada and Germany. These valuation allowances relate primarily to net operating loss carryforward benefits, foreign tax credit carryforwards 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, 2023 2022 2021 (In $ millions) As of the beginning of the year 275 218 165 Increases in tax positions for the current year 10 8 33 Increases in tax positions for prior years 9 102 28 Decreases in tax positions for prior years (35) (45) (11) Increases (decreases) due to settlements (35) (8) 3 As of the end of the year 224 275 218 Total uncertain tax positions that if recognized would impact the effective tax rate 244 274 224 Total amount of interest expense (benefit) and penalties recognized in the consolidated statements of operations (1) 22 10 2 Total amount of interest expense and penalties recognized in the consolidated balance sheets 71 59 52 ______________________________ (1) This amount reflects interest on uncertain tax positions and release of tax positions due to changes in assessment, statute lapses or audit closures that were reflected in the consolidated statements of operations. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease expense are as follows: Year Ended December 31, Statement of Operations Classification 2023 2022 2021 (In $ millions) Lease Cost Operating lease cost 99 66 40 Cost of sales / Selling, general and administrative expenses Short-term lease cost 19 19 18 Cost of sales / Selling, general and administrative expenses Variable lease cost 13 15 12 Cost of sales / Selling, general and administrative expenses Finance lease cost Amortization of leased assets 21 19 19 Cost of sales Interest on lease liabilities 10 11 13 Interest expense Sublease income — 2 — Other income (expense), net Total net lease cost 162 132 102 |
Assets and liabilities, lessee [Table Text Block] | Supplemental consolidated balance sheet information related to leases is as follows: As of December 31, Balance Sheet Classification 2023 2022 (In $ millions) Leases Assets Operating lease assets 422 413 Operating lease ROU assets Finance lease assets 154 176 Property, plant and equipment, net Total leased assets 576 589 Liabilities Current Operating 89 83 Current Other liabilities Finance 24 25 Short-term borrowings and current installments of long-term debt Noncurrent Operating 325 364 Operating lease liabilities Finance 124 147 Long-term debt Total lease liabilities 562 619 |
Supplemental lease information [Table Text Block] | As of December 31, 2023 2022 Weighted-Average Remaining Lease Term (years) Operating leases 8.6 9.0 Finance leases 7.8 8.3 Weighted-Average Discount Rate Operating leases 3.5 % 3.0 % Finance leases 6.2 % 6.4 % |
CashFlowLessee [Table Text Block] | Supplemental consolidated cash flow information related to leases is as follows: Year Ended December 31, 2023 2022 2021 (In $ millions) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 92 52 37 Operating cash flows from finance leases 10 11 13 Financing cash flows from finance leases 24 25 29 ROU assets obtained in exchange for finance lease liabilities ( Note 20 ) 2 28 — ROU assets obtained in exchange for operating lease liabilities 58 93 52 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturities of lease liabilities are as follows: As of December 31, 2023 Operating Leases Finance Leases (In $ millions) 2024 102 32 2025 87 28 2026 68 26 2027 36 21 2028 28 18 Later years 148 75 Total lease payments 469 200 Less amounts representing interest (55) (52) Total lease obligations 414 148 |
Finance Lease, Liability, Maturity [Table Text Block] | Maturities of lease liabilities are as follows: As of December 31, 2023 Operating Leases Finance Leases (In $ millions) 2024 102 32 2025 87 28 2026 68 26 2027 36 21 2028 28 18 Later years 148 75 Total lease payments 469 200 Less amounts representing interest (55) (52) Total lease obligations 414 148 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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) Gain (Loss) Recognized Statement of Operations Classification Year Ended December 31, Year Ended December 31, 2023 2022 2021 2023 2022 2021 (In $ millions) Designated as Cash Flow Hedges Commodity swaps (5) 39 25 2 23 3 Cost of sales Interest rate swaps — — 10 (7) (7) (3) Interest expense Foreign currency forwards 5 2 (1) 5 1 — Cost of sales Total — 41 34 — 17 — Designated as Fair Value Hedges Cross-currency swaps (1) (1) — — 9 — — Foreign exchange gain (loss), net Designated as Net Investment Hedges (2) Foreign currency denominated debt ( Note 11 ) (106) (22) 107 — — — N/A Cross-currency swaps ( Note 11 ) (174) (92) 27 — — — N/A Total (280) (114) 134 — — — Not Designated as Hedges Foreign currency forwards and swaps — — — (19) (2) (13) Foreign exchange gain (loss), net; Other income (expense), net ______________________________ (1) In conjunction with the 2023 Offering ( Note 11 ) in August 2023, the Company entered into a cross-currency swap to effectively convert $500 million of the issued notes into a Japanese yen-denominated borrowing at prevailing yen interest rates, maturing on July 15, 2029. The swap qualifies and has been designated as a fair value hedge of the Company's foreign currency exchange rate exposure on the long-term debt of its Japanese yen-denominated subsidiary. Additionally, in conjunction with the 2023 Offering ( Note 11 ) in August 2023, the Company entered into cross-currency swaps to effectively convert $1.0 billion of the issued notes into 5-year and 7-year euro-denominated borrowings at prevailing euro interest rates, maturing on November 15, 2028 and November 15, 2030, respectively. The swaps qualify and have been designated as fair value hedges of the Company's foreign currency exchange rate exposure on the long-term debt of its euro-denominated subsidiary. (2) Concurrently with offering of the Acquisition USD Notes in July 2022 ( Note 11 ), the Company entered into cross-currency swaps to effectively convert $2.0 billion and $500 million of the Acquisition USD Notes into a euro-denominated borrowing at prevailing euro interest rates, maturing on July 15, 2027 and July 15, 2032, respectively. The swaps and €1.5 billion of the Acquisition Euro Notes qualify and have been designated as net investment hedges of the Company's foreign currency exchange rate exposure on the net investments of certain of its euro-denominated subsidiaries. |
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, 2023 2022 (In $ millions) Derivative Assets Gross amount recognized 183 169 Gross amount offset in the consolidated balance sheets — — Net amount presented in the consolidated balance sheets 183 169 Gross amount not offset in the consolidated balance sheets 40 16 Net amount 143 153 |
Offsetting Liabilities | As of December 31, 2023 2022 (In $ millions) Derivative Liabilities Gross amount recognized 440 189 Gross amount offset in the consolidated balance sheets — — Net amount presented in the consolidated balance sheets 440 189 Gross amount not offset in the consolidated balance sheets 40 16 Net amount 400 173 |
Schedule of Notional Amounts of Net Foreign Exchange Exposure by Currency | The total U.S. dollar equivalents of net foreign exchange exposure related to (short) long foreign exchange forward contracts outstanding by currency are as follows: 2024 Maturity (In $ millions) Currency Brazilian real (43) British pound sterling 53 Canadian dollar 23 Chinese yuan 383 Euro 148 Hungarian forint 18 Indian rupee (27) Indonesian rupiah (9) Japanese yen (38) Korean won 197 Mexican peso 109 Singapore dollar 21 Swedish krona (7) Swiss franc (156) Total 672 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Fair Value Measurement Significant Other Observable Inputs (Level 2) Other assets Other liabilities Notional Amount Current Noncurrent Current Noncurrent (In millions) (In $ millions) As of December 31, 2023 Derivatives Designated as Cash Flow Hedges Commodity swaps $ 67 5 36 2 — Designated as Fair Value Hedges Cross-currency swaps $ 1,500 40 — 11 61 Derivatives Designated as Net Investment Hedges Cross-currency swaps € 5,712 93 — 61 281 Derivatives Not Designated as Hedges Foreign currency forwards and swaps $ 1,954 9 — 16 8 Total 147 36 90 350 As of December 31, 2022 Derivatives Designated as Cash Flow Hedges Commodity swaps $ 82 9 39 2 — Foreign currency forwards and swaps $ 49 — — — — Derivatives Designated as Net Investment Hedges Cross-currency swaps € 5,639 99 13 58 126 Derivatives Not Designated as Hedges Foreign currency forwards and swaps $ 1,265 9 — 3 — Total 117 52 63 126 |
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 Significant Unobservable Total As of December 31, 2023 2022 2023 2022 2023 2022 2023 2022 (In $ millions) Equity investments without readily determinable fair values 170 170 — — — — — — Insurance contracts in nonqualified trusts 21 22 21 23 — — 21 23 Long-term debt, including current installments of long-term debt 13,400 13,953 13,514 13,247 148 172 13,662 13,419 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Supplemental Cash Flow Information | Year Ended December 31, 2023 2022 2021 (In $ millions) Interest paid, net of amounts capitalized 780 122 105 Taxes paid, net of refunds 237 273 215 Noncash Investing and Financing Activities Accrued treasury stock repurchases — (17) — Finance lease obligations ( Note 16 ) 2 28 — Accrued capital expenditures (26) 40 23 Asset retirement obligations 11 3 3 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Business Segments | Engineered Acetyl Chain Other Eliminations Consolidated (In $ millions) Year Ended December 31, 2023 Net sales 6,149 4,884 (1) — (93) 10,940 Other (charges) gains, net ( Note 24 ) (56) (4) (8) — (68) Operating profit (loss) 1,083 (2) 1,109 (505) — 1,687 Equity in net earnings (loss) of affiliates 83 6 13 — 102 Depreciation and amortization 462 217 27 — 706 Capital expenditures 237 207 98 — 542 (3) As of December 31, 2023 Goodwill and intangible assets, net 10,525 427 — — 10,952 Total assets 17,930 5,538 3,129 — 26,597 Year Ended December 31, 2022 Net sales 4,024 5,743 (1) — (94) 9,673 Other (charges) gains, net ( Note 24 ) (7) — (1) — (8) Operating profit (loss) 429 1,447 (498) — 1,378 Equity in net earnings (loss) of affiliates 202 7 11 — 220 Depreciation and amortization 226 213 23 — 462 Capital expenditures 178 352 53 — 583 (3) As of December 31, 2022 Goodwill and intangible assets, net 10,826 421 — — 11,247 Total assets 20,611 5,471 190 — 26,272 Year Ended December 31, 2021 Net sales 2,718 5,894 (1) — (75) 8,537 Other (charges) gains, net ( Note 24 ) 6 1 (4) — 3 Operating profit (loss) 411 1,875 (340) — 1,946 Equity in net earnings (loss) of affiliates 126 7 13 — 146 Depreciation and amortization 144 210 17 — 371 Capital expenditures 154 311 25 — 490 (3) ______________________________ (1) Includes intersegment sales of $93 million, $94 million and $75 million for the years ended December 31, 2023, 2022 and 2021, respectively. (2) Includes a $515 million gain related to the formation of the Nutrinova joint venture included in Gain (loss) on disposition of businesses and assets, net in the consolidated statements of operations ( N ote 4 ). (3) Includes a decrease in accrued capital expenditures of $26 million, an increase in accrued capital expenditures of $40 million and an increase in accrued capital expenditures of $23 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Schedule of Geographical Segments | The Net sales to external customers based on geographic location are as follows: Year Ended December 31, 2023 2022 2021 (In $ millions) Belgium 499 251 268 Brazil 140 122 92 Canada 146 120 98 China 1,952 1,525 1,621 France 84 31 28 Germany 2,468 2,934 2,675 India 150 55 34 Italy 77 7 — Japan 312 87 15 Mexico 361 359 330 Singapore 1,146 1,209 1,202 South Korea 154 68 8 Spain 58 11 — Switzerland 223 165 140 United Kingdom 86 13 — U.S. 2,821 2,562 2,004 Other 263 154 22 Total 10,940 9,673 8,537 Property, plant and equipment, net based on the geographic location of the Company's facilities is as follows: As of December 31, 2023 2022 (In $ millions) Belgium 112 113 Canada 121 128 China 568 688 Germany 843 937 Italy 74 64 Japan 43 52 Mexico 44 52 Netherlands 48 52 Singapore 82 99 South Korea 64 79 Switzerland 58 73 United Kingdom 118 118 U.S. 3,286 3,032 Other 123 97 Total 5,584 5,584 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Further disaggregation of Net sales by business segment and geographic destination is as follows: Year Ended December 31, 2023 2022 2021 (In $ millions) Engineered Materials North America 1,780 1,197 774 Europe and Africa 1,941 1,538 1,155 Asia-Pacific 2,274 1,180 703 South America 154 109 86 Total 6,149 4,024 2,718 Acetyl Chain North America 1,448 1,713 1,533 Europe and Africa 1,680 1,961 1,914 Asia-Pacific 1,543 1,811 2,214 South America 120 164 158 Total (1) 4,791 5,649 5,819 ______________________________ (1) Excludes intersegment sales of $93 million, $94 million and $75 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) Per Share | Year Ended December 31, 2023 2022 2021 (In $ millions, except share data) Amounts attributable to Celanese Corporation Earnings (loss) from continuing operations 1,969 1,902 1,912 Earnings (loss) from discontinued operations (9) (8) (22) Net earnings (loss) 1,960 1,894 1,890 Weighted average shares - basic 108,848,962 108,380,082 111,224,017 Incremental shares attributable to equity awards (1) 530,702 855,294 860,395 Weighted average shares - diluted 109,379,664 109,235,376 112,084,412 ______________________________ (1) Excludes options to purchase 202,876, 0 and 0 shares of Common Stock for the years ended December 31, 2023, 2022 and 2021, respectively, as their effect would have been antidilutive. Excludes 39,465, 154,172 and 555 equity award shares for the years ended December 31, 2023, 2022 and 2021, respectively, as their effect would have been antidilutive. |
Description of the Company an_2
Description of the Company and Basis of Presentation (Narrative) (Details) | Dec. 31, 2023 |
Consolidated Ventures | |
Schedule of Equity Method Investments [Line Items] | |
Noncontrolling interest, ownership percentage by parent | 100% |
Summary of Accounting Policie_3
Summary of Accounting Policies (Pension and Other Postretirement Obligations) (Details) | Dec. 31, 2023 |
Accounting Policies [Abstract] | |
Number of Aa-grade non-callable bonds | 300 |
Summary of Accounting Policie_4
Summary of Accounting Policies (Variable Interest Entities) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Investments [Line Items] | ||
Total assets | $ 26,597 | $ 26,272 |
Property, plant and equipment (net of accumulated depreciation - 2023: $4,080; 2022: $3,687) | $ 5,584 | 5,584 |
Variable Interest Entity, Primary Beneficiary | ||
Schedule of Investments [Line Items] | ||
Ownership percentage | 50% | |
Total assets | $ 626 | 627 |
Property, plant and equipment (net of accumulated depreciation - 2023: $4,080; 2022: $3,687) | 529 | 544 |
Variable Interest Entity, Not Primary Beneficiary | ||
Schedule of Investments [Line Items] | ||
Maximum exposure to loss | $ 208 | $ 223 |
Summary of Accounting Policie_5
Summary of Accounting Policies (Schedule of Estimated Useful Lives of Depreciable Assets) (Details) | Dec. 31, 2023 |
Land improvements | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Buildings and improvements | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 30 years |
Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] | Useful Life, Shorter of Lease Term or Asset Utility [Member] |
Maximum | Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Summary of Accounting Policie_6
Summary of Accounting Policies (Definite-lived Intangible Asset Narrative) (Details) | Dec. 31, 2023 |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 6 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 30 years |
Summary of Accounting Policie_7
Summary of Accounting Policies (Environmental Liabilities Narrative) (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Environmental liabilities accrual period | 15 years |
Summary of Accounting Policie_8
Summary of Accounting Policies Summary of Accounting Policies (Revenue Recognition) (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 1,200 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 446 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 398 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 152 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Summary of Accounting Policie_9
Summary of Accounting Policies Summary of Accounting Policies (Leases) (Details) | Dec. 31, 2023 |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Lessee, Operating Lease, Renewal Term | 1 year |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Lessee, Operating Lease, Renewal Term | 30 years |
Acquisitions, Dispositions an_3
Acquisitions, Dispositions and Plant Closures (Narrative) (Details) € in Millions, $ in Millions | 1 Months Ended | 2 Months Ended | 12 Months Ended | ||||||
Sep. 27, 2023 USD ($) | Nov. 01, 2022 USD ($) employees facility patent | Apr. 01, 2022 USD ($) annualInstallment | Apr. 01, 2022 EUR (€) annualInstallment | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | |||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 10,940 | $ 9,673 | $ 8,537 | ||||||
Earnings (loss) from continuing operations before tax | 1,183 | 1,421 | 2,248 | ||||||
Proceeds from sale of businesses and assets, net | 480 | 48 | 27 | ||||||
Gain (loss) on disposition of businesses and assets, net | 505 | 5 | 3 | ||||||
Nutrinova Joint Venture | |||||||||
Business Acquisition [Line Items] | |||||||||
Gain (loss) on disposition of businesses and assets, net | $ 515 | ||||||||
Korea Engineering Plastics Co., Ltd. | |||||||||
Business Acquisition [Line Items] | |||||||||
Payments to equity method investment | $ 5 | € 24 | |||||||
Number of payments to equity method investments | annualInstallment | 5 | 5 | |||||||
Equity method investment, increase | $ 134 | ||||||||
Celanese Corporation | Nutrinova Joint Venture | |||||||||
Business Acquisition [Line Items] | |||||||||
Equity ethod Investment, Ownership Percentage | 30% | ||||||||
Celanese Corporation | Korea Engineering Plastics Co., Ltd. | |||||||||
Business Acquisition [Line Items] | |||||||||
Equity ethod Investment, Ownership Percentage | 50% | 50% | |||||||
Mitsui & Co. Ltd. | Nutrinova Joint Venture | |||||||||
Business Acquisition [Line Items] | |||||||||
Equity ethod Investment, Ownership Percentage | 70% | ||||||||
Proceeds from sale of businesses and assets, net | $ 503 | ||||||||
Mitsubishi Gas Chemical Company | Korea Engineering Plastics Co., Ltd. | |||||||||
Business Acquisition [Line Items] | |||||||||
Equity ethod Investment, Ownership Percentage | 50% | 50% | |||||||
Santoprene | |||||||||
Business Acquisition [Line Items] | |||||||||
Payments to acquire businesses, gross | $ 1,150 | ||||||||
Mobility & Materials | |||||||||
Business Acquisition [Line Items] | |||||||||
Payments to acquire businesses, gross | $ 11,000 | ||||||||
Business acquisition, percentage of voting interests acquired | 100% | ||||||||
Number of facilities | facility | 29 | ||||||||
Number of patents | patent | 850 | ||||||||
Entity number of employees | employees | 5,000 | ||||||||
Business Combination, Pro Forma Information, Interest Expense and Debt Issuance Cost Amortization | 366 | 674 | |||||||
Net total inventory step up, amortization to cost of sales | 66 | $ 66 | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 430 | ||||||||
Earnings (loss) from continuing operations before tax | $ (80) | ||||||||
Mobility & Materials | Selling, General and Administrative Expenses | |||||||||
Business Acquisition [Line Items] | |||||||||
Business combination, acquisition related costs | $ 117 |
Acquisitions, Dispositions an_4
Acquisitions, Dispositions and Plant Closures (Business Acquisition, Pro Forma Information) (Details) - Mobility & Materials - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||
Proforma Net sales | $ 12,614 | $ 12,069 |
Proforma Earnings (loss) from continuing operations before tax | $ 888 | $ 1,843 |
Acquisitions, Dispositions an_5
Acquisitions, Dispositions and Plant Closures (Schedule of Restructuring and Related Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Loss on disposition of assets, net | $ (505) | $ (5) | $ (3) |
Uentrop, Germany | Engineered Materials | |||
Restructuring Cost and Reserve [Line Items] | |||
Accelerated depreciation expense | 14 | ||
Loss on disposition of assets, net | 4 | ||
Plant Shutdown Costs | 18 | ||
Restructuring and Related Cost, Expected Cost | $ 70 |
Receivables, Net Receivables,_2
Receivables, Net Receivables, Net (Schedule of Trade Receivables - Third Party and Affiliates, Net) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Trade receivables - third party and affiliates | $ 1,255 | $ 1,394 |
Allowance for doubtful accounts - third party and affiliates | (12) | (15) |
Trade receivables - third party and affiliates, net | $ 1,243 | $ 1,379 |
Receivables, Net Receivables,_3
Receivables, Net Receivables, Net (Schedule of Non-trade Receivables, Net) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Non-income taxes receivable | $ 270 | $ 334 | |
Income taxes receivable | 57 | 26 | |
Other(1) | [1] | 214 | 315 |
Non-trade receivables, net | 541 | 675 | |
Mobility & Materials | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Other(1) | $ 42 | $ 193 | |
[1] Includes $42 million and $193 million of non-trade receivables related to the M&M Acquisition as of December 31, 2023 and December 31, 2022, respectively. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 1,604 | $ 1,820 |
Work-in-process | 160 | 202 |
Raw materials and supplies | 593 | 786 |
Total | $ 2,357 | $ 2,808 |
Investments in Affiliates (Sche
Investments in Affiliates (Schedule of Equity Method Investments) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 USD ($) Investment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | ||
Schedule of Equity Method Investments [Line Items] | ||||
Carrying value | $ 954 | $ 813 | ||
Equity in net earnings (loss) of affiliates | 102 | 220 | $ 146 | |
Dividends and other distributions | $ (157) | (217) | (112) | |
Number of Equity Method Investments | Investment | 14 | |||
Minimum | Other Equity Method Investment, Investees | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity ethod Investment, Ownership Percentage | 22% | |||
Maximum | Other Equity Method Investment, Investees | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity ethod Investment, Ownership Percentage | 50% | |||
Engineered Materials | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Carrying value | [1] | $ 898 | 760 | |
Equity in net earnings (loss) of affiliates | [1] | 88 | 209 | 133 |
Dividends and other distributions | [1] | (145) | (204) | (98) |
Corporate and Other [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Carrying value | 56 | 53 | ||
Equity in net earnings (loss) of affiliates | 14 | 11 | 13 | |
Dividends and other distributions | $ (12) | $ (13) | $ (14) | |
[1] Engineered Materials includes an equity method investment with losses in excess of its carrying amount due to the Company's guarantee of various debt obligations under agreements with third parties related to an equity affiliate ( Note 19 ). This equity method investment was recorded in Current Other liabilities ( Note 10 ) as of December 31, 2023 and December 31, 2022. |
Investments in Affiliates (Sc_2
Investments in Affiliates (Schedule of Equity Securities Without Readily Determinable Fair Value) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Investment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Investments in and Advances to Affiliates [Line Items] | |||
Carrying Value | $ 170 | $ 170 | |
Dividend income - equity investments | $ 126 | 133 | $ 147 |
Number of Equity Method Investments Without Readily Determinable Fair Values | Investment | 4 | ||
Minimum | Other equity securities without readily determinable fair value investee [Member] | |||
Investments in and Advances to Affiliates [Line Items] | |||
Ownership percentage | 8% | ||
Maximum | Other equity securities without readily determinable fair value investee [Member] | |||
Investments in and Advances to Affiliates [Line Items] | |||
Ownership percentage | 31% | ||
Acetyl Chain | |||
Investments in and Advances to Affiliates [Line Items] | |||
Carrying Value | $ 165 | 165 | |
Dividend income - equity investments | 125 | 132 | 146 |
Corporate and Other [Member] | |||
Investments in and Advances to Affiliates [Line Items] | |||
Carrying Value | 5 | 5 | |
Dividend income - equity investments | $ 1 | $ 1 | $ 1 |
Investments in Affiliates (Sc_3
Investments in Affiliates (Schedule of Transactions with Affiliates) (Details) - Related Party - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments in and Advances to Affiliates, Activity [Line Items] | |||
Purchases | $ 490 | $ 590 | $ 334 |
Sales and other credits | $ 212 | $ 72 | $ 74 |
Investments in Affiliates (Sc_4
Investments in Affiliates (Schedule of Balances with Affiliates) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Investments in and Advances to Affiliates, Activity [Line Items] | |||
Trade receivables - third party and affiliates | $ 1,243 | $ 1,379 | |
Non-trade receivables, net | 541 | 675 | |
Current notes receivables | [1] | 214 | 315 |
Short-term borrowings and current installments of long-term debt - third party and affiliates | 1,383 | 1,306 | |
Trade payables - third party and affiliates | 1,510 | 1,518 | |
Other liabilities | 1,154 | 1,201 | |
Total current liabilities | 4,072 | 4,068 | |
Related Party | |||
Investments in and Advances to Affiliates, Activity [Line Items] | |||
Trade receivables - third party and affiliates | 7 | 8 | |
Non-trade receivables, net | 40 | 36 | |
Current notes receivables | 57 | 0 | |
Total due from affiliates | 104 | 44 | |
Short-term borrowings and current installments of long-term debt - third party and affiliates | [2] | 23 | 0 |
Trade payables - third party and affiliates | 52 | 36 | |
Other liabilities | 34 | 37 | |
Total current liabilities | $ 109 | $ 73 | |
[1] Includes $42 million and $193 million of non-trade receivables related to the M&M Acquisition as of December 31, 2023 and December 31, 2022, respectively. The Company has agreements with certain affiliates whereby excess affiliate cash is lent to and managed by the Company at variable interest rates governed by those agreements. |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Schedule of Property, Plant and Equipment, Net) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Gross asset value | $ 9,664 | $ 9,271 |
Accumulated depreciation | (4,080) | (3,687) |
Net book value | 5,584 | 5,584 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Gross asset value | 260 | 291 |
Land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross asset value | 85 | 83 |
Buildings and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross asset value | 1,082 | 1,062 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross asset value | 7,157 | 6,897 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Gross asset value | $ 1,080 | $ 938 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Abstract] | ||
Finance lease, right-of-use asset | $ 154 | $ 176 |
Property, Plant and Equipment_5
Property, Plant and Equipment, Net (Schedule of Capitalized Interest and Depreciation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment, Net [Abstract] | |||
Capitalized interest | $ 37 | $ 18 | $ 12 |
Depreciation expense | $ 540 | $ 399 | $ 346 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net (Schedule of Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | |||
Goodwill | ||||
Goodwill, beginning balance | $ 7,142 | $ 1,412 | ||
Acquisitions (Note 4) | (107) | (5,781) | ||
Goodwill, Transfers | [1] | (80) | ||
Exchange rate changes | 22 | (51) | ||
Goodwill, ending balance | 6,977 | [2] | 7,142 | |
Accumulated impairment losses | 0 | |||
Goodwill, Impairment Loss | 0 | |||
Engineered Materials | ||||
Goodwill | ||||
Goodwill, beginning balance | 6,775 | 1,030 | ||
Acquisitions (Note 4) | (107) | (5,781) | ||
Goodwill, Transfers | [1] | (80) | ||
Exchange rate changes | 14 | (36) | ||
Goodwill, ending balance | 6,602 | [2] | 6,775 | |
Acetyl Chain | ||||
Goodwill | ||||
Goodwill, beginning balance | 367 | 382 | ||
Acquisitions (Note 4) | 0 | 0 | ||
Goodwill, Transfers | [1] | 0 | ||
Exchange rate changes | 8 | (15) | ||
Goodwill, ending balance | $ 375 | [2] | $ 367 | |
[1] Related to the formation of the Nutrinova joint venture ( Note 4 ). There were no accumulated impairment losses as of December 31, 2023. |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Finite-Lived intangible Assets Rollforward | |||||
Gross asset value | $ 3,153 | $ 1,141 | |||
Acquisitions | [1] | 2,059 | |||
Disposition(2) | (61) | [2] | (2) | ||
Accumulated impairment losses | (4) | ||||
Exchange rate changes | 42 | (41) | |||
Gross asset value | 3,134 | 3,153 | $ 1,141 | ||
Accumulated amortization | (696) | (665) | |||
Amortization | (164) | (62) | (25) | ||
Disposition(2) | 60 | [2] | 2 | ||
Accumulated impairment losses | 2 | ||||
Exchange rate changes | 14 | 27 | |||
Accumulated amortization | (814) | $ (696) | (665) | ||
Net book value | 2,320 | ||||
Renewals | 0 | ||||
Mobility & Materials | |||||
Finite-Lived intangible Assets Rollforward | |||||
Weighted average life of intangible assets acquired | 18 years | ||||
Licenses | |||||
Finite-Lived intangible Assets Rollforward | |||||
Gross asset value | 42 | $ 45 | |||
Acquisitions | [1] | 0 | |||
Disposition(2) | 0 | [2] | 0 | ||
Accumulated impairment losses | 0 | ||||
Exchange rate changes | (1) | (3) | |||
Gross asset value | 41 | 42 | 45 | ||
Accumulated amortization | (39) | (41) | |||
Amortization | 0 | (1) | |||
Disposition(2) | 0 | [2] | 0 | ||
Accumulated impairment losses | 0 | ||||
Exchange rate changes | (1) | 3 | |||
Accumulated amortization | (38) | (39) | (41) | ||
Net book value | 3 | ||||
Customer- Related Intangible Assets | |||||
Finite-Lived intangible Assets Rollforward | |||||
Gross asset value | 2,455 | 996 | |||
Acquisitions | [1] | 1,509 | |||
Disposition(2) | (60) | [2] | (2) | ||
Accumulated impairment losses | (4) | ||||
Exchange rate changes | 42 | (44) | |||
Gross asset value | 2,437 | 2,455 | 996 | ||
Accumulated amortization | (567) | (543) | |||
Amortization | (120) | (51) | |||
Disposition(2) | 59 | [2] | 2 | ||
Accumulated impairment losses | 2 | ||||
Exchange rate changes | 11 | 23 | |||
Accumulated amortization | (639) | (567) | (543) | ||
Net book value | 1,798 | ||||
Customer- Related Intangible Assets | Mobility & Materials | |||||
Finite-Lived intangible Assets Rollforward | |||||
Acquisitions | $ 1,500 | ||||
Weighted average life of intangible assets acquired | 20 years | ||||
Developed Technology | |||||
Finite-Lived intangible Assets Rollforward | |||||
Gross asset value | 601 | $ 45 | |||
Acquisitions | [1] | 550 | |||
Disposition(2) | (1) | [2] | 0 | ||
Accumulated impairment losses | 0 | ||||
Exchange rate changes | 1 | 6 | |||
Gross asset value | 601 | 601 | 45 | ||
Accumulated amortization | (50) | (42) | |||
Amortization | (43) | (9) | |||
Disposition(2) | 1 | [2] | 0 | ||
Accumulated impairment losses | 0 | ||||
Exchange rate changes | 3 | 1 | |||
Accumulated amortization | (95) | (50) | (42) | ||
Net book value | 506 | ||||
Developed Technology | Mobility & Materials | |||||
Finite-Lived intangible Assets Rollforward | |||||
Acquisitions | $ 550 | ||||
Weighted average life of intangible assets acquired | 13 years | ||||
Covenants Not to Compete and Other | |||||
Finite-Lived intangible Assets Rollforward | |||||
Gross asset value | 55 | $ 55 | |||
Acquisitions | [1] | 0 | |||
Disposition(2) | 0 | [2] | 0 | ||
Accumulated impairment losses | 0 | ||||
Exchange rate changes | 0 | 0 | |||
Gross asset value | 55 | 55 | 55 | ||
Accumulated amortization | (40) | (39) | |||
Amortization | (1) | (1) | |||
Disposition(2) | 0 | [2] | 0 | ||
Accumulated impairment losses | 0 | ||||
Exchange rate changes | 1 | 0 | |||
Accumulated amortization | (42) | $ (40) | $ (39) | ||
Net book value | $ 13 | ||||
[1] Primarily related to $1.5 billion of customer-related intangible assets and $550 million of developed technology acquired as part of the M&M Acquisition with weighted average amortization periods of 20 years and 13 years, respectively, and 18 years in total ( Note 4 ). Primarily related to the formation of the Nutrinova joint venture ( Note 4 ). |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net (Schedule of Indefinite-Lived Intangible Assets, Net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Gross Asset Value | |||
Impairment loss (Note 2) | $ 0 | ||
Impairment of Intangible Assets, Indefinite-Lived (Excluding Goodwill) | 0 | ||
Trademarks and Trade Names [Member] | |||
Gross Asset Value | |||
Gross asset value, beginning balance | 1,648 | $ 259 | |
Acquisitions | 1,400 | ||
Indefinite-Lived Intangible Assets, Transferred | [1] | 14 | |
Exchange rate changes | (21) | (11) | |
Gross asset value, ending balance | $ 1,655 | $ 1,648 | |
[1] Related to the formation of the Nutrinova joint venture ( Note 4 ). |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net (Schedule of Estimated Amortization Expense) (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 161 |
2025 | 161 |
2026 | 160 |
2027 | 160 |
2028 | $ 160 |
Current Other Liabilities (Deta
Current Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Deposit Liability [Line Items] | |||
Benefit obligations (Note 12) | $ 25 | $ 25 | |
Customer rebates | 96 | 101 | |
Derivatives (Note 17) | 90 | 63 | |
Interest (Note 11) | 246 | 265 | |
Legal (Note 19) | 34 | 21 | |
Operating leases (Note 16) | 89 | 83 | |
Restructuring (Note 24) | 18 | 6 | |
Salaries and benefits | 175 | 151 | |
Sales and use tax/foreign withholding tax payable | 128 | 108 | |
Equity Method Investment Liability, Current | 96 | 79 | |
Other(1) | [1] | 157 | 299 |
Total | 1,154 | 1,201 | |
Mobility & Materials | |||
Deposit Liability [Line Items] | |||
Other(1) | $ 18 | $ 166 | |
[1] Includes $18 million and $166 million payable to DuPont related to the M&M Acquisition and transition activities as of December 31, 2023 and December 31, 2022, respectively. |
Debt (Schedule of Short-term De
Debt (Schedule of Short-term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates | |||
Current installments of long-term debt | $ 1,025 | $ 506 | |
Short-term borrowings, including amounts due to affiliates | [1] | 146 | 500 |
Total | 1,383 | 1,306 | |
Revolving Credit Facility | |||
Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates | |||
Line of Credit, Current | [2] | $ 212 | $ 300 |
Weighted average interest rate, short-term borrowings | 3.40% | 5.80% | |
Short-term Debt [Member] | |||
Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates | |||
Weighted average interest rate, short-term borrowings | 2.90% | 5.80% | |
[1] The weighted average interest rate was 2.9% and 5.8% as of December 31, 2023 and 2022, respectively. The weighted average interest rate was 3.4% and 5.8% as of December 31, 2023 and 2022, respectively. |
Debt (Schedule of Long-term Deb
Debt (Schedule of Long-term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Aug. 24, 2023 | Dec. 31, 2022 | Jul. 31, 2022 | |
Debt Instrument [Line Items] | |||||
Obligations under finance leases due at various dates through 2054 | $ 148 | $ 172 | |||
Subtotal | 13,400 | 13,953 | |||
Unamortized deferred financing costs(4) | [1] | (74) | (74) | ||
Current installments of long-term debt | (1,025) | (506) | |||
Long-term debt, net of unamortized deferred financing costs | 12,301 | 13,373 | |||
Senior unsecured notes due 2023, interest rate of 1.125% | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes | $ 0 | 480 | |||
Interest Rate | 1.125% | ||||
Senior unsecured notes due 2024, interest rate of 3.500% | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes | $ 473 | 499 | |||
Interest Rate | 3.50% | ||||
Senior unsecured notes due 2024, interest rate of 5.900% | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes | $ 527 | 2,000 | |||
Interest Rate | 5.90% | 5.90% | |||
Senior unsecured notes due 2025, interest rate of 1.250% | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes | $ 331 | 320 | |||
Interest Rate | 1.25% | ||||
Senior unsecured notes due 2025, interest rate of 6.050% | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes | $ 1,000 | 1,750 | |||
Interest Rate | 6.05% | 6.05% | |||
Senior unsecured term loan due 2025(1) | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes | [2] | $ 0 | $ 750 | ||
Interest Rate | 5.934% | ||||
Senior unsecured notes due 2026, interest rate of 1.400% | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes | $ 400 | $ 400 | |||
Interest Rate | 1.40% | ||||
Senior unsecured notes due 2026, interest rate of 4.777% | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes | $ 1,105 | 1,067 | |||
Interest Rate | 4.777% | 4.777% | |||
Senior unsecured notes due 2027, interest rate of 2.125% | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes | $ 551 | 531 | |||
Interest Rate | 2.125% | ||||
Senior unsecured notes due 2027, interest rate of 6.165% | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes | $ 2,000 | 2,000 | |||
Interest Rate | 6.165% | 6.165% | |||
Senior unsecured term loan due 2027(1) | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes | [2] | $ 880 | $ 1,000 | ||
Interest Rate | 6.943% | 5.934% | |||
Senior unsecured notes due 2028, interest rate of 0.625% | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes | $ 552 | $ 533 | |||
Interest Rate | 0.625% | ||||
Senior unsecured notes due 2028, interest rate of 6.350% | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes | $ 1,000 | 0 | |||
Interest Rate | 6.35% | 6.35% | |||
Senior unsecured notes due 2029, interest rate of 5.337% | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes | $ 552 | 533 | |||
Interest Rate | 5.337% | 5.337% | |||
Senior unsecured notes due 2029, interest rate of 6.330% | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes | $ 750 | 750 | |||
Interest Rate | 6.33% | 6.33% | |||
Senior unsecured notes due 2030, interest rate of 6.550% | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes | $ 999 | 0 | |||
Interest Rate | 6.55% | 6.55% | |||
Senior unsecured notes due 2032, interest rate of 6.379% | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes | $ 1,000 | 1,000 | |||
Interest Rate | 6.379% | 6.379% | |||
Senior unsecured notes due 2033, interest rate of 6.700% | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes | $ 1,000 | 0 | |||
Interest Rate | 6.70% | 6.70% | |||
Pollution control and industrial revenue bonds due at various dates through 2030(2) | |||||
Debt Instrument [Line Items] | |||||
Other Long-term debt | [3] | $ 127 | 164 | ||
Pollution control and industrial revenue bonds due at various dates through 2030(2) | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 4.05% | ||||
Pollution control and industrial revenue bonds due at various dates through 2030(2) | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 5% | ||||
Bank loans due at various dates through 2030(3) | |||||
Debt Instrument [Line Items] | |||||
Other Long-term debt | [4] | $ 5 | $ 4 | ||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 2.60% | 1.30% | |||
[1] Related to the Company's long-term debt, excluding obligations under finance leases. The interest rate was 6.943% and 5.934% as of December 31, 2023 and 2022, respectively. Interest rates range from 4.05% to 5.00%. The weighted average interest rate was 2.6% and 1.3% as of December 31, 2023 and 2022, respectively. |
Debt (Senior Credit Facilities
Debt (Senior Credit Facilities Narrative) (Details) ¥ in Millions, $ in Millions | 12 Months Ended | ||||||
Jan. 06, 2023 CNY (¥) | Sep. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Feb. 01, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jan. 04, 2023 CNY (¥) | |
364 Day Senior Unsecured Bridge Term Loan | Bridge Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Term | 364 days | ||||||
Bridge Facility, Maximum Borrowing Capacity | $ 11,000 | ||||||
Bridge Facility, Current Borrowing Capacity | $ 0 | ||||||
Bridge Facility, Commitment Fee Amount | $ 66 | ||||||
364 Day Delayed-Draw Term Loan | Term Loan Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Term | 364 days | ||||||
Debt Instrument, Face Amount | $ 500 | ||||||
5 Year Delayed-Draw Term Loan | Term Loan Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Term | 5 years | ||||||
Debt Instrument, Face Amount | $ 1,000 | ||||||
5 Year Delayed-Draw Term Loan | Term Loan Facility | Minimum | Term SOFR | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.125% | ||||||
5 Year Delayed-Draw Term Loan | Term Loan Facility | Minimum | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.125% | ||||||
5 Year Delayed-Draw Term Loan | Term Loan Facility | Maximum | Term SOFR | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 2.125% | ||||||
5 Year Delayed-Draw Term Loan | Term Loan Facility | Maximum | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.125% | ||||||
3 Year Delayed-Draw Term Loan | Term Loan Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Term | 3 years | ||||||
Debt Instrument, Face Amount | $ 750 | ||||||
3 Year Delayed-Draw Term Loan | Term Loan Facility | Minimum | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.125% | ||||||
3 Year Delayed-Draw Term Loan | Term Loan Facility | Maximum | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.125% | ||||||
Revolving Credit Facility | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,750 | ||||||
Proceeds from Lines of Credit | 365 | ||||||
Revolving Credit Facility | Minimum | Variable Interbank Interest Rate | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1% | ||||||
Revolving Credit Facility | Maximum | Variable Interbank Interest Rate | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 2% | ||||||
Senior Unsecured Revolving Credit Facility [Member] | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of Lines of Credit | $ 365 | ||||||
China Revolving Credit Facility | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | ¥ | ¥ 1,750 | ||||||
China Working Capital Term Loan | China Working Capital Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Term | 12 months | ||||||
Debt Instrument, Face Amount | ¥ | ¥ 800 | ||||||
China Working Capital Term Loan | China Working Capital Term Loan | Variable Interbank Interest Rate | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% |
Debt (Schedule of Balances Avai
Debt (Schedule of Balances Available for Borrowing) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of Credit, Current | [1] | $ 212 | $ 300 |
Revolving Credit Facility | Senior Unsecured Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit, Current | 0 | ||
Line of Credit Facility, Remaining Borrowing Capacity | 1,750 | ||
China Revolving Credit Facility | Senior Unsecured Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit, Current | 212 | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 34 | ||
[1] The weighted average interest rate was 3.4% and 5.8% as of December 31, 2023 and 2022, respectively. |
Debt (Senior Notes) (Details)
Debt (Senior Notes) (Details) € in Millions, $ in Millions | 12 Months Ended | ||
Jul. 31, 2022 USD ($) | Dec. 31, 2023 | Jul. 31, 2022 EUR (€) | |
Debt Instrument [Line Items] | |||
Debt Instrument, Redemption Price, Percentage | 100% | ||
Senior unsecured notes due 2024, interest rate of 5.900% | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 2,000 | ||
Debt Instrument, Discount Price, Percentage | 99.987% | 99.987% | |
Interest Rate | 5.90% | 5.90% | 5.90% |
Senior unsecured notes due 2025, interest rate of 6.050% | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 1,750 | ||
Debt Instrument, Discount Price, Percentage | 99.993% | 99.993% | |
Interest Rate | 6.05% | 6.05% | 6.05% |
Senior unsecured notes due 2026, interest rate of 4.777% | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | € | € 1,000 | ||
Debt Instrument, Discount Price, Percentage | 100% | 100% | |
Interest Rate | 4.777% | 4.777% | 4.777% |
Senior unsecured notes due 2027, interest rate of 6.165% | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 2,000 | ||
Debt Instrument, Discount Price, Percentage | 100% | 100% | |
Interest Rate | 6.165% | 6.165% | 6.165% |
Senior unsecured notes due 2029, interest rate of 5.337% | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | € | € 500 | ||
Debt Instrument, Discount Price, Percentage | 99.996% | 99.996% | |
Interest Rate | 5.337% | 5.337% | 5.337% |
Senior unsecured notes due 2029, interest rate of 6.330% | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 750 | ||
Debt Instrument, Discount Price, Percentage | 100% | 100% | |
Interest Rate | 6.33% | 6.33% | 6.33% |
Senior unsecured notes due 2032, interest rate of 6.379% | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 1,000 | ||
Debt Instrument, Discount Price, Percentage | 100% | 100% | |
Interest Rate | 6.379% | 6.379% | 6.379% |
Acquisition Notes | |||
Debt Instrument [Line Items] | |||
Notes Offering Related Costs | $ 65 |
Debt (Schedule of Senior Unsecu
Debt (Schedule of Senior Unsecured Notes Offering) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Aug. 24, 2023 |
Senior unsecured notes due 2028, interest rate of 6.350% | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 1,000 | |
Interest Rate | 6.35% | 6.35% |
Debt Instrument, Discount Price, Percentage | 99.986% | |
Senior unsecured notes due 2030, interest rate of 6.550% | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 999 | |
Interest Rate | 6.55% | 6.55% |
Debt Instrument, Discount Price, Percentage | 99.95% | |
Senior unsecured notes due 2033, interest rate of 6.700% | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 1,000 | |
Interest Rate | 6.70% | 6.70% |
Debt Instrument, Discount Price, Percentage | 99.992% | |
2023 Offering of Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Debt Issuance Costs, Gross | $ 26 |
Debt (Schedule of Cash Tender O
Debt (Schedule of Cash Tender Offer) (Details) | Aug. 25, 2023 USD ($) |
Debt Instrument [Line Items] | |
Debt Instrument, Repurchased Face Amount | $ 2,250,000,000 |
Senior unsecured notes due 2024, interest rate of 5.900% | |
Debt Instrument [Line Items] | |
Debt Instrument, Repurchased Face Amount | 1,473,000,000 |
Debt Instrument Tender Purchase Price Per 1000 Principal Amount | 999.92 |
Debt Instrument, Repurchase Amount | 1,473,000,000 |
Interest Expense, Debt | 12,000,000 |
Senior unsecured notes due 2025, interest rate of 6.050% | |
Debt Instrument [Line Items] | |
Debt Instrument, Repurchased Face Amount | 750,000,000 |
Debt Instrument Tender Purchase Price Per 1000 Principal Amount | 1,002.85 |
Debt Instrument, Repurchase Amount | 752,000,000 |
Interest Expense, Debt | 20,000,000 |
Senior unsecured notes due 2024, interest rate of 3.500% | |
Debt Instrument [Line Items] | |
Debt Instrument, Repurchased Face Amount | 27,000,000 |
Debt Instrument Tender Purchase Price Per 1000 Principal Amount | 983.95 |
Debt Instrument, Repurchase Amount | 27,000,000 |
Interest Expense, Debt | $ 0 |
Debt (Schedule of Principal Pay
Debt (Schedule of Principal Payments) (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 1,383 |
2025 | 1,395 |
2026 | 1,527 |
2027 | 3,449 |
2028 | 1,567 |
Thereafter | 4,437 |
Total | $ 13,758 |
Debt (Accounts Receivable Secur
Debt (Accounts Receivable Securitization Facility) (Details) - Secured Debt [Member] - Amended Restated Receivable Securitization Facility [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
PercentageOfFairValueOfSalesReceivables | 100% | |
Transfer of Financial Assets Accounted for as Sales, Amount Derecognized | $ 1,400 | $ 1,100 |
Proceeds Collected on Accounts Receivable Sold under Factoring Facilities | 1,300 | $ 1,100 |
Trade Receivables Pledged As Collateral | $ 109 |
Debt (Factoring and Discounting
Debt (Factoring and Discounting Agreements) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Europe and Singapore Factoring Agreements | ||
Debt Instrument [Line Items] | ||
Transfer of Financial Assets Accounted for as Sales, Amount Derecognized | $ 423 | $ 320 |
Proceeds Collected on Accounts Receivable Sold under Factoring Facilities | 407 | 325 |
Singapore Discounting Agreement | ||
Debt Instrument [Line Items] | ||
Transfer of Financial Assets Accounted for as Sales, Amount Derecognized | 8 | $ 50 |
Master Discounting Agreement | ||
Debt Instrument [Line Items] | ||
Transfer of Financial Assets Accounted for as Sales, Amount Derecognized | $ 45 | |
Europe Factoring Agreements | ||
Debt Instrument [Line Items] | ||
Transfer Of Financial Assets Accounted For As Sales, Non-recourse Basis, Account Receivable Percentage | 100% | |
Singapore Factoring Agreements | ||
Debt Instrument [Line Items] | ||
Transfer Of Financial Assets Accounted For As Sales, Non-recourse Basis, Account Receivable Percentage | 90% |
Benefit Obligations Benefit Obl
Benefit Obligations Benefit Obligations (Schedule of Contributions to Defined Contribution Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Defined contribution plans | $ 83 | $ 62 | $ 47 |
Benefit Obligations (Schedule o
Benefit Obligations (Schedule of Company's Pension and Post Retirement Benefit Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Amounts Recognized in Accumulated Other Comprehensive Income Consist of: | ||||
Net amount recognized | $ 7 | $ (7) | $ 3 | |
Pension Plan [Member] | ||||
Change in Projected Benefit Obligation | ||||
Projected benefit obligation as of beginning of period | 2,858 | 3,488 | ||
Service cost | 11 | 12 | 13 | |
Interest cost | 132 | 67 | 54 | |
Net actuarial (gain) loss | [1] | 144 | (662) | |
Acquisitions | [2] | 0 | 198 | |
Divestiture | [3] | (4) | 0 | |
Settlements | (16) | 0 | ||
Benefits paid | (226) | (220) | ||
Exchange rate changes | 24 | (25) | ||
Projected benefit obligation as of end of period | 2,923 | 2,858 | 3,488 | |
Change in Plan Assets | ||||
Fair value of plan assets as of beginning of period | 2,625 | 3,183 | ||
Actual return on plan assets | 213 | (588) | ||
Employer contributions | 46 | 45 | ||
Acquisitions | [2] | 0 | 211 | |
Defined Benefit Plan, Plan Assets, Divestiture | [3] | (2) | 0 | |
Settlements | (16) | 0 | ||
Benefits paid | [4] | (226) | (220) | |
Exchange rate changes | 12 | (6) | ||
Fair value of plan assets as of end of period | 2,652 | 2,625 | 3,183 | |
Funded status as of end of period | (271) | (233) | ||
Amounts Recognized in the Consolidated Balance Sheets Consist of: | ||||
Noncurrent Other assets | 166 | 160 | ||
Current Other liabilities | (22) | (21) | ||
Benefit obligations | (415) | (372) | ||
Funded status as of end of period | (271) | (233) | ||
Amounts Recognized in Accumulated Other Comprehensive Income Consist of: | ||||
Net actuarial (gain) loss | [5] | 24 | 13 | |
Prior service (benefit) cost | 0 | 0 | ||
Net amount recognized | 24 | 13 | ||
Other Postretirement Benefits Plan [Member] | ||||
Change in Projected Benefit Obligation | ||||
Projected benefit obligation as of beginning of period | 38 | 51 | ||
Service cost | 0 | 1 | 1 | |
Interest cost | 2 | 1 | 1 | |
Net actuarial (gain) loss | [1] | 2 | (10) | |
Acquisitions | [2] | 0 | 0 | |
Divestiture | [3] | 0 | 0 | |
Settlements | 0 | 0 | ||
Benefits paid | (3) | (3) | ||
Exchange rate changes | 1 | (2) | ||
Projected benefit obligation as of end of period | 40 | 38 | 51 | |
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 | 3 | 3 | ||
Acquisitions | [2] | 0 | 0 | |
Defined Benefit Plan, Plan Assets, Divestiture | [3] | 0 | 0 | |
Settlements | 0 | 0 | ||
Benefits paid | [4] | (3) | (3) | |
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 | (40) | (38) | ||
Amounts Recognized in the Consolidated Balance Sheets Consist of: | ||||
Noncurrent Other assets | 0 | 0 | ||
Current Other liabilities | (3) | (3) | ||
Benefit obligations | (37) | (35) | ||
Funded status as of end of period | (40) | (38) | ||
Amounts Recognized in Accumulated Other Comprehensive Income Consist of: | ||||
Net actuarial (gain) loss | [5] | 0 | 0 | |
Prior service (benefit) cost | (1) | (1) | ||
Net amount recognized | (1) | (1) | ||
Supplemental Employee Retirement Plan [Member] | ||||
Change in Plan Assets | ||||
Benefits paid | $ (20) | $ (20) | ||
[1] Primarily relates to changes in discount rates. Represents plan obligations and assets related to the M&M Acquisition ( Note 4 ). Represents plan obligations and assets contributed to the Nutrinova joint venture ( Note 4 ). Includes benefit payments to nonqualified pension plans of $20 million and $20 million as of December 31, 2023 and 2022, respectively. Relates to the pension plans of the Company's equity method investments. |
Benefit Obligations (Schedule_2
Benefit Obligations (Schedule of Percentage of US and International Projected Benefit Obligation) (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of projected benefit obligation | 100% | 100% |
Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of projected benefit obligation | 100% | 100% |
UNITED STATES | Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of projected benefit obligation | 71% | 73% |
UNITED STATES | Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of projected benefit obligation | 37% | 50% |
Foreign Plan [Member] | Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of projected benefit obligation | 29% | 27% |
Foreign Plan [Member] | Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of projected benefit obligation | 63% | 50% |
Benefit Obligations (Schedule_3
Benefit Obligations (Schedule of Percentage of US and International Fair Value of Plan Assets) (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of US and international fair value of plan assets | 100% | 100% |
UNITED STATES | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of US and international fair value of plan assets | 75% | 77% |
Foreign Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of US and international fair value of plan assets | 25% | 23% |
Benefit Obligations (Schedule_4
Benefit Obligations (Schedule of Pension Plans with Projected Benefit Obligations in Excess of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 788 | $ 669 |
Fair value of plan assets | $ 352 | $ 277 |
Benefit Obligations (Schedule_5
Benefit Obligations (Schedule of Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accumulated benefit obligation | $ 738 | $ 649 |
Fair value of plan assets | 329 | 270 |
Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accumulated benefit obligation | $ 40 | $ 38 |
Benefit Obligations (Schedule_6
Benefit Obligations (Schedule of Accumulated Benefit Obligation for All Defined Benefit Pension Plans) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Retirement Benefits [Abstract] | ||
Accumulated benefit obligation | $ 2,882 | $ 2,837 |
Benefit Obligations (Schedule_7
Benefit Obligations (Schedule of Net Periodic Benefit Costs Recognized) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial (gain) loss on pension and postretirement plans | $ 66 | $ 81 | $ 41 |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 11 | 12 | 13 |
Interest cost | 132 | 67 | 54 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (132) | (166) | (205) |
Actuarial (gain) loss on pension and postretirement plans | 63 | 91 | 47 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 1 | 0 | 3 |
Total | 75 | 4 | (88) |
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 1 | 1 |
Interest cost | 2 | 1 | 1 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 0 | 0 | 0 |
Actuarial (gain) loss on pension and postretirement plans | 3 | (10) | (6) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0 | 0 | 0 |
Total | $ 5 | $ (8) | $ (4) |
Benefit Obligations (Schedule_8
Benefit Obligations (Schedule of Nonqualified Pension Plans Funded with Nonqualified Trusts) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent Other assets, consisting of insurance contracts | $ 21 | $ 23 |
Supplemental Employee Retirement Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent Other assets, consisting of insurance contracts | 21 | 22 |
Current Other liabilities | 18 | 18 |
Benefit obligations | 149 | 152 |
Supplemental Employee Retirement Plan [Member] | Money Market Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Marketable securities | $ 5 | $ 5 |
Benefit Obligations (Schedule_9
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental Employee Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | $ 16 | $ (34) | $ 3 |
Benefit Obligations (Schedul_10
Benefit Obligations (Schedule of Principle Weighted Average Assumptions Used to Determine Benefit Obligations and Benefit Cost) (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate obligations | 4.50% | 4.90% | |
Rate of compensation increase | 2.80% | 2.70% | |
Discount rate NPBC | 4.90% | 2.50% | 2.10% |
Discount rate NPBC - service cost | 3.50% | 1.50% | 1.10% |
Discount rate NPBC - interest cost | 4.80% | 2% | 1.40% |
Expected return on plan assets | 5.20% | 5.40% | 6.30% |
Rate of compensation increase NPBC | 2.80% | 2.50% | 2.50% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Weighted-Average Interest Crediting Rate | 4.30% | 1.90% | 1.40% |
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate obligations | 4.50% | 5.10% | |
Discount rate NPBC | 5.10% | 2.50% | 2.10% |
Discount rate NPBC - service cost | 4.50% | 2.10% | 1.90% |
Discount rate NPBC - interest cost | 5% | 2.10% | 1.50% |
UNITED STATES | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on plan assets | 5.50% | 5.50% | 6.50% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Weighted-Average Interest Crediting Rate | 4.30% | 1.90% | 1.40% |
UNITED STATES | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate obligations | 5.10% | 5.50% | |
Discount rate NPBC | 5.50% | 2.80% | 2.40% |
Discount rate NPBC - interest cost | 5.40% | 2.20% | 1.70% |
UNITED STATES | Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate obligations | 5.10% | 5.40% | |
Discount rate NPBC | 5.40% | 2.70% | 2.20% |
Discount rate NPBC - service cost | 5.90% | 3.50% | |
Discount rate NPBC - interest cost | 5.30% | 2% | 1.50% |
Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Rate of compensation increase | 2.80% | 2.70% | |
Expected return on plan assets | 4.40% | 4.90% | 4.80% |
Rate of compensation increase NPBC | 2.80% | 2.50% | 2.50% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Weighted-Average Interest Crediting Rate | 1% | 1% | 1% |
Foreign Plan [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate obligations | 3.10% | 3.40% | |
Discount rate NPBC | 3.40% | 1.40% | 1% |
Discount rate NPBC - service cost | 3.50% | 1.50% | 1.10% |
Discount rate NPBC - interest cost | 3.40% | 1.20% | 0.70% |
Foreign Plan [Member] | Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate obligations | 4.10% | 4.70% | |
Discount rate NPBC | 4.70% | 2.40% | 1.90% |
Discount rate NPBC - service cost | 4.40% | 2.10% | 1.90% |
Discount rate NPBC - interest cost | 4.70% | 2.10% | 1.50% |
Benefit Obligations Benefit O_2
Benefit Obligations Benefit Obligations (Schedule of US Health Care Cost Trend Rates) (Details) - UNITED STATES - Postretirement Health Coverage [Member] | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
ScheduleofHealthCareCostTrend [Line Items] | |||
Health care cost trend rate assumed for next year | 7.30% | 7.50% | 7.30% |
Health care cost trend ultimate rate | 5% | 5% | 5% |
Health care cost trend ultimate rate year | 2032 | 2032 | 2031 |
Benefit Obligations (Valuation
Benefit Obligations (Valuation Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on plan assets | 5.20% | 5.40% | 6.30% |
Benefit Obligations (Schedul_11
Benefit Obligations (Schedule of Weighted Average Target Asset Allocations) (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
UNITED STATES | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual return on plan assets | 8.80% | ||
Expected return on plan assets | 5.50% | 5.50% | 6.50% |
Weighted average target asset allocations | 100% | ||
UNITED STATES | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average target asset allocations | 84% | ||
UNITED STATES | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average target asset allocations | 8% | ||
UNITED STATES | Equity Securities International To Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average target asset allocations | 8% | ||
UNITED STATES | Other Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average target asset allocations | 0% | ||
Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on plan assets | 4.40% | 4.90% | 4.80% |
Weighted average target asset allocations | 100% | ||
Foreign Plan [Member] | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average target asset allocations | 36% | ||
Foreign Plan [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average target asset allocations | 21% | ||
Foreign Plan [Member] | Equity Securities International To Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average target asset allocations | 8% | ||
Foreign Plan [Member] | Other Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average target asset allocations | 35% |
Benefit Obligations (Schedul_12
Benefit Obligations (Schedule of Fair Values of Pension Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets, fair value non-financial receivables | $ 22 | $ 17 | |
Pension plan assets, fair value non-financial payables | 5 | 10 | |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | [1] | 2,101 | 2,095 |
Total liabilities [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | (60) | (4) | |
Swaps [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | (60) | (4) | |
Defined Benefit Plan, Equity Securities, Non-US [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 148 | 135 | |
Defined Benefit Plan, Cash and Cash Equivalents [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 7 | 7 | |
Total plan assets [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | [2] | 2,161 | 2,099 |
Equities [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 460 | 441 | |
Swaps [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 60 | 4 | |
Corporate Debt [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 686 | 662 | |
Treasuries, Other Debt [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 1,100 | 1,130 | |
Mortgage Backed Securities [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 13 | 12 | |
Registered Investment Companies [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 43 | 41 | |
Short-term Investments [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 31 | 41 | |
Insurance Contracts [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 104 | 98 | |
Other [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 22 | 25 | |
Defined Benefit Plan, Equity Securities, US | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 21 | 26 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | [1] | 266 | 334 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Total liabilities [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Swaps [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Defined Benefit Plan, Equity Securities, Non-US [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 148 | 135 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Defined Benefit Plan, Cash and Cash Equivalents [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 7 | 7 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Total plan assets [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | [2] | 266 | 334 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Swaps [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate Debt [Member] | Pension Plan [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 Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 87 | 162 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mortgage Backed Securities [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Insurance Contracts [Member] | Pension Plan [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 Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 3 | 4 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Defined Benefit Plan, Equity Securities, US | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 21 | 26 | |
Significant Other Observable Inputs (Level 2) [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | [1] | 1,835 | 1,761 |
Significant Other Observable Inputs (Level 2) [Member] | Total liabilities [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | (60) | (4) | |
Significant Other Observable Inputs (Level 2) [Member] | Swaps [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | (60) | (4) | |
Significant Other Observable Inputs (Level 2) [Member] | Defined Benefit Plan, Equity Securities, Non-US [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Defined Benefit Plan, Cash and Cash Equivalents [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Total plan assets [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | [2] | 1,895 | 1,765 |
Significant Other Observable Inputs (Level 2) [Member] | Swaps [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 60 | 4 | |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Debt [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 686 | 662 | |
Significant Other Observable Inputs (Level 2) [Member] | Treasuries, Other Debt [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 1,013 | 968 | |
Significant Other Observable Inputs (Level 2) [Member] | Mortgage Backed Securities [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 13 | 12 | |
Significant Other Observable Inputs (Level 2) [Member] | Insurance Contracts [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 104 | 98 | |
Significant Other Observable Inputs (Level 2) [Member] | Other [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | 19 | 21 | |
Significant Other Observable Inputs (Level 2) [Member] | Defined Benefit Plan, Equity Securities, US | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total net assets | $ 0 | $ 0 | |
[1] Total net assets excludes non-financial plan receivables and payables of $22 million and $5 million, respectively, as of December 31, 2023 and $17 million and $10 million, respectively, as of December 31, 2022. Non-financial items include due to/from broker, interest receivables and accrued expenses. 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, 2023 excludes investments in pooled-type investments, registered investment companies and short-term investment funds with fair values of $460 million, $43 million and $31 million, respectively. Total investments, at fair value, for the year ended December 31, 2022 excludes investments in pooled-type investments, registered investment companies and short-term investment funds with fair values of $441 million, $41 million and $41 million, respectively. |
Benefit Obligations Benefit O_3
Benefit Obligations Benefit Obligations (Schedule of Pension Contributions Expected to be Contributed to the Plans) (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 29 |
Other Postretirement Benefits Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 3 |
Supplemental Employee Retirement Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 19 |
Benefit Obligations (Schedul_13
Benefit Obligations (Schedule of Pension Benefits Expected to be Paid from the Plans or From the Company's Assets) (Details) $ in Millions | Dec. 31, 2023 USD ($) | |
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
2024 | $ 238 | [1] |
2025 | 234 | [1] |
2026 | 232 | [1] |
2027 | 226 | [1] |
2028 | 224 | [1] |
2029-2033 | 1,044 | [1] |
Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
2024 | 3 | [2] |
2025 | 3 | [2] |
2026 | 3 | [2] |
2027 | 3 | [2] |
2028 | 2 | [2] |
2029-2033 | $ 11 | [2] |
[1] Payments are expected to be made primarily from plan assets. Payments are expected to be made primarily from Company assets. |
Benefit Obligations (Plan Asset
Benefit Obligations (Plan Assets Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Unrecognized Tax Benefit, Decrease resulting from changes in uncertain tax position and impacts of amended tax return filings | $ 5 | $ 63 | $ 65 | ||
Asset transfers between wholly owned foreign affiliates | $ 800 | $ (839) | $ (816) | $ 0 | |
Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected return on plan assets | 5.20% | 5.40% | 6.30% | ||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 29 | ||||
Other Postretirement Benefits Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 3 | ||||
UNITED STATES | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Actual return on plan assets | 8.80% | ||||
Expected return on plan assets | 5.50% | 5.50% | 6.50% | ||
Foreign Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected return on plan assets | 4.40% | 4.90% | 4.80% | ||
Forecast [Member] | UNITED STATES | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected return on plan assets | 5.50% |
Environmental (Schedule of Envi
Environmental (Schedule of Environmental Remediation Reserves) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Environmental Remediation Obligations [Abstract] | ||
Demerger obligations (Note 19) | $ 14 | $ 20 |
Divestiture obligations (Note 19) | 13 | 14 |
Active sites | 25 | 21 |
U.S. Superfund sites | 8 | 10 |
Other environmental remediation liabilities | 2 | 2 |
Total | $ 62 | $ 67 |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Other liabilities, Other liabilities | Other liabilities, Other liabilities |
Environmental (Schedule of En_2
Environmental (Schedule of Environmental Ownership and Liability Percentages) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Environmental Disclosure [Line Items] | |||
Reserves | $ 62 | $ 67 | |
InfraServ GmbH & Co. Gendorf KG | |||
Environmental Disclosure [Line Items] | |||
Ownership percentage | 30% | ||
Liability percentage | 10% | ||
Reserves | [1] | $ 8 | |
InfraServ GmbH & Co. Hoechst KG | |||
Environmental Disclosure [Line Items] | |||
Ownership percentage | 31% | ||
Liability percentage | 40% | ||
Reserves | [1] | $ 65 | |
Yncoris GmbH & Co. KG | |||
Environmental Disclosure [Line Items] | |||
Ownership percentage | 22% | ||
Liability percentage | 22% | ||
Reserves | [1] | $ 1 | |
[1] Gross reserves maintained by the respective entity. |
Environmental Environmental (US
Environmental Environmental (US Superfund Sites Narrative) (Details) - Passaic River, New Jersey [Member] $ in Millions | 12 Months Ended | ||||
Mar. 24, 2023 USD ($) | Dec. 16, 2022 USD ($) | Sep. 30, 2021 USD ($) | Mar. 31, 2016 USD ($) | Dec. 31, 2023 | |
Site Contingency [Line Items] | |||||
Number of Parties included in USEPA order | 40 | 70 | |||
EPA Estimated Cost | $ 71 | $ 150 | $ 441 | $ 1,400 | |
Liability percentage | 1% |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 07, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
Equity, Class of Treasury Stock [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Subsequent Event [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Quarterly cash dividend per share | $ 0.70 | ||
Cash dividend | $ 76 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Treasury Stock) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | 191 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | ||||
Shares repurchased | 0 | 0 | 6,556,378 | 69,324,429 |
Average purchase price per share | $ 0 | $ 0 | $ 152.53 | $ 83.71 |
Amount spent on repurchased shares (in $ millions) | $ 0 | $ 0 | $ 1,000 | $ 5,803 |
Aggregate Board of Directors repurchase authorizations during the period | 0 | $ 0 | $ 1,000 | |
Share repurchase plan, authorized repurchase amount | $ 6,866 | $ 6,866 |
Stockholders' Equity (Schedul_2
Stockholders' Equity (Schedule of Components of Other Comprehensive Income (Loss), Net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Comprehensive Income (Loss) [Line Items] | |||
Foreign currency translation, gross amount | $ (275) | $ (240) | $ 20 |
Foreign currency translation, income tax (provision) benefit | 62 | 23 | (31) |
Foreign currency translation, net amount | (213) | (217) | (11) |
Gain (loss) on cash flow hedges, gross amount | (12) | 26 | 34 |
Gain (loss) on cash flow hedges, income tax (provision) benefit | (6) | 5 | 21 |
Gain (loss) on cash flow hedges, net amount | (6) | 21 | 13 |
Pension and postretirement benefits, gross amount | (8) | 7 | (3) |
Pension and postretirement benefits, income tax (provision) benefit | 1 | 0 | 0 |
Pension and postretirement benefits, net amount | (7) | 7 | (3) |
Total other comprehensive income (loss), gross amount | (295) | (207) | 51 |
Total other comprehensive income (loss), income tax (provision) benefit | 69 | 18 | (52) |
Total other comprehensive income (loss), net of tax | $ (226) | $ (189) | $ (1) |
Stockholders' Equity (Schedul_3
Stockholders' Equity (Schedule of Adjustments to Accumulated Other Comprehensive Income (Loss), Net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of the beginning of the period | $ (518) | $ (329) | $ (328) |
Other comprehensive income (loss) before reclassifications | (286) | (190) | 51 |
Amounts reclassified from accumulated other comprehensive income (loss) | (9) | (17) | |
Income tax (provision) benefit | 69 | 18 | (52) |
Balance as of the end of the period | (744) | (518) | (329) |
Foreign Currency Translation [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of the beginning of the period | (488) | (271) | (260) |
Other comprehensive income (loss) before reclassifications | (275) | (240) | 20 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | |
Income tax (provision) benefit | 62 | 23 | (31) |
Balance as of the end of the period | (701) | (488) | (271) |
Pension and Postretirement Benefits [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of the beginning of the period | (8) | (15) | (12) |
Other comprehensive income (loss) before reclassifications | (8) | 7 | (3) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | |
Income tax (provision) benefit | 1 | 0 | 0 |
Balance as of the end of the period | (15) | (8) | (15) |
AOCI, Derivative Qualifying as Hedge, Excluded Component, Parent | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of the beginning of the period | (22) | (43) | (56) |
Other comprehensive income (loss) before reclassifications | (3) | 43 | 34 |
Amounts reclassified from accumulated other comprehensive income (loss) | (9) | (17) | |
Income tax (provision) benefit | 6 | (5) | (21) |
Balance as of the end of the period | $ (28) | $ (22) | $ (43) |
Other (Charges) Gains, Net (Sch
Other (Charges) Gains, Net (Schedule of Other (Charges) Gains, Net) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Restructuring and Related Activities [Abstract] | ||||
Restructuring(1) | $ (52) | [1] | $ (6) | $ (5) |
Asset impairments | (15) | (14) | (2) | |
Plant/office closures | (1) | 12 | 10 | |
Other (charges) gains, net | $ (68) | $ (8) | $ 3 | |
[1] Includes employee termination benefits primarily related to Company-wide business optimization projects during the year ended December 31, 2023. |
Other (Charges) Gains, Net (S_2
Other (Charges) Gains, Net (Schedule of Restructuring Reserves) (Details) - Employee Termination Benefits [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Reserve as of the beginning of the period | $ 6 |
Restructuring Charges | 52 |
Payments for Restructuring | (40) |
Reserve as of the end of the period | 18 |
Other [Member] | |
Restructuring Reserve [Roll Forward] | |
Reserve as of the beginning of the period | 1 |
Restructuring Charges | 8 |
Payments for Restructuring | (6) |
Reserve as of the end of the period | 3 |
Engineered Materials | |
Restructuring Reserve [Roll Forward] | |
Reserve as of the beginning of the period | 4 |
Restructuring Charges | 40 |
Payments for Restructuring | (31) |
Reserve as of the end of the period | 13 |
Acetyl Chain | |
Restructuring Reserve [Roll Forward] | |
Reserve as of the beginning of the period | 1 |
Restructuring Charges | 4 |
Payments for Restructuring | (3) |
Reserve as of the end of the period | $ 2 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (163) | $ (292) | $ 202 |
International | 1,346 | 1,713 | 2,046 |
Earnings (loss) from continuing operations before tax | $ 1,183 | $ 1,421 | $ 2,248 |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income Tax Provision (Benefit)) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current | ||||
U.S. | $ 8 | $ 54 | $ 0 | |
International | 162 | 306 | 323 | |
Total | 170 | 360 | 323 | |
Deferred | ||||
U.S. | (178) | (261) | (16) | |
International | (782) | (588) | 23 | |
Total | (960) | (849) | 7 | |
Income tax provision (benefit) | (790) | (489) | 330 | |
Asset transfers between wholly owned foreign affiliates | $ 800 | $ (839) | $ (816) | $ 0 |
Income Taxes Income Taxes (Sche
Income Taxes Income Taxes (Schedule of Effective Tax Rate Reconciliation) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision computed at U.S. federal statutory tax rate | $ 248 | $ 298 | $ 472 | |
Change in valuation allowance | (150) | (15) | (50) | |
Equity income and dividends | (27) | (47) | (29) | |
(Income) expense not resulting in tax impact, net | (9) | 2 | (53) | |
U.S. tax effect of foreign earnings and dividends | 384 | 162 | 332 | |
Foreign tax credits | (73) | (120) | (328) | |
Other foreign tax rate differentials | (108) | (43) | (66) | |
Legislative changes | (44) | 0 | (8) | |
State income taxes, net of federal benefit | (8) | (2) | 6 | |
Recognition of basis differences in investments in affiliates | 0 | 6 | 0 | |
Asset transfers between wholly owned foreign affiliates | $ 800 | (839) | (816) | 0 |
Other, net | (164) | 86 | 54 | |
Income tax provision (benefit) | $ (790) | $ (489) | $ 330 | |
Effective income tax rate | (67.00%) | (34.00%) | 15% |
Income Taxes (Income Tax Provis
Income Taxes (Income Tax Provision Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Tax Credit Carryforward [Line Items] | ||||
Asset transfers between wholly owned foreign affiliates | $ 800 | $ (839) | $ (816) | $ 0 |
Tax Credit Carryforward, Expiration Date | Dec. 31, 2027 | |||
Other, net | $ (164) | 86 | 54 | |
Unrecognized Tax Benefit, Decrease resulting from changes in uncertain tax position and impacts of amended tax return filings | 5 | 63 | 65 | |
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 230 | |||
Deferred Income Taxes and Tax Credits | 725 | |||
Other foreign tax rate differentials | (108) | (43) | (66) | |
Effective Income Tax Rate Reconciliation, U.S. Benefits Of Foreign Derived Intangible Income, Amount | 72 | 0 | $ 10 | |
Nutrinova Joint Venture | ||||
Tax Credit Carryforward [Line Items] | ||||
Other, net | 102 | |||
Mobility & Materials | ||||
Tax Credit Carryforward [Line Items] | ||||
Asset transfers between wholly owned foreign affiliates | $ (190) | |||
Other, net | $ 20 | |||
Minimum | US Federal [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Net operating loss carryforward expiration | Dec. 31, 2025 | |||
Minimum | CHINA | ||||
Tax Credit Carryforward [Line Items] | ||||
Net operating loss carryforward expiration | Dec. 31, 2023 | |||
Maximum | CHINA | ||||
Tax Credit Carryforward [Line Items] | ||||
Net operating loss carryforward expiration | Dec. 31, 2028 |
Income Taxes (Schedule of Conso
Income Taxes (Schedule of Consolidated Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Deferred Tax Assets | |||
Pension and postretirement obligations | $ 61 | $ 61 | |
Accrued expenses | 56 | 80 | |
Deferred Tax Assets, Inventory | (13) | (11) | |
Net operating loss carryforwards | 783 | 528 | |
Tax credit carryforwards | 135 | 359 | |
Other | 737 | 400 | |
Subtotal | 1,759 | 1,417 | |
Valuation allowance | [1] | (656) | (781) |
Total | 1,103 | 636 | |
Deferred Tax Liabilities | |||
Depreciation and amortization | 152 | 743 | |
Investments in affiliates | 188 | 171 | |
Other | 85 | 156 | |
Total | 425 | 1,070 | |
Deferred income taxes | $ 678 | ||
Deferred Tax Liabilities, Net | $ (434) | ||
[1] Includes deferred tax asset valuation allowances for the Company's deferred tax assets in Luxembourg, the U.S., Spain, China, the United Kingdom, France, Mexico, Singapore, Canada and Germany. These valuation allowances relate primarily to net operating loss carryforward benefits, foreign tax credit carryforwards and other net deferred tax assets, all of which may not be realizable. |
Income Taxes (Net Operating Los
Income Taxes (Net Operating Loss Carryforwards and Tax Credit Carryforwards Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Tax Credit Carryforward, Amount | $ 112 |
Alternative Minimum Tax Credit Carryforwards, Before Tax | 18 |
Mobility & Materials | |
Operating Loss Carryforwards [Line Items] | |
Capital Loss Carryforwards | 173 |
US Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 20 |
State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 42 |
Valuation allowance offset for State net operating loss carryforwards due to uncertain recoverability | 27 |
Foreign Tax Authority | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 4,000 |
CHINA | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 17 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Activity Related To Uncertain Tax Positions [Roll Forward] | ||||
As of the beginning of the year | $ 275 | $ 218 | $ 165 | |
Increases in tax positions for the current year | 10 | 8 | 33 | |
Increases in tax positions for prior years | 9 | 102 | 28 | |
Decreases in tax positions for prior years | (35) | (45) | (11) | |
Increases (decreases) due to settlements | (35) | (8) | (3) | |
As of the end of the year | 224 | 275 | 218 | |
Total uncertain tax positions that if recognized would impact the effective tax rate | 244 | 274 | 224 | |
Total amount of interest expense (benefit) and penalties recognized in the consolidated statements of operations(1) | [1] | 22 | 10 | 2 |
Total amount of interest expense and penalties recognized in the consolidated balance sheets | $ 71 | $ 59 | $ 52 | |
[1] This amount reflects interest on uncertain tax positions and release of tax positions due to changes in assessment, statute lapses or audit closures that were reflected in the consolidated statements of operations. |
Leases Lease costs (Details)
Leases Lease costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 99 | $ 66 | $ 40 |
Short-term lease cost | 19 | 19 | 18 |
Variable lease cost | 13 | 15 | 12 |
Amortization of leased assets | 21 | 19 | 19 |
Interest on lease liabilities | 10 | 11 | 13 |
Sublease Income | 0 | 2 | 0 |
Total net lease cost | $ 162 | $ 132 | $ 102 |
Leases Supplemental balance she
Leases Supplemental balance sheet information (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 422 | $ 413 |
Finance lease, right-of-use asset | 154 | 176 |
Lease, Right-of-Use Asset | 576 | 589 |
Operating leases (Note 16) | 89 | 83 |
Finance Lease, Liability, Current | 24 | 25 |
Operating lease liabilities | 325 | 364 |
Finance Lease, Liability, Noncurrent | 124 | 147 |
Lease Liability | $ 562 | $ 619 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Operating lease right-of-use assets | Operating lease right-of-use assets |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment (net of accumulated depreciation - 2023: $4,080; 2022: $3,687) | Property, plant and equipment (net of accumulated depreciation - 2023: $4,080; 2022: $3,687) |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Short-term borrowings and current installments of long-term debt - third party and affiliates | Short-term borrowings and current installments of long-term debt - third party and affiliates |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Operating lease liabilities | Operating lease liabilities |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt, net of unamortized deferred financing costs | Long-term debt, net of unamortized deferred financing costs |
Leases Supplemental lease infor
Leases Supplemental lease information (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Weighted-average remaining operating leases term | 8 years 7 months 6 days | 9 years |
Weighted-average remaining finance leases term | 7 years 9 months 18 days | 8 years 3 months 18 days |
Weighted-average operating leases discount rate | 3.50% | 3% |
Weighted-average finance leases discount rate | 6.20% | 6.40% |
Leases Supplemental cash flow i
Leases Supplemental cash flow information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 92 | $ 52 | $ 37 |
Operating cash flows from finance leases | 10 | 11 | 13 |
Financing cash flows from finance leases | 24 | 25 | 29 |
Finance lease obligations | 2 | 28 | 0 |
ROU assets obtained in exchange for operating lease liabilities | $ 58 | $ 93 | $ 52 |
Leases Maturities of lease liab
Leases Maturities of lease liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2024 | $ 102 | |
2025 | 87 | |
2026 | 68 | |
2027 | 36 | |
2028 | 28 | |
Later years | 148 | |
Total lease payments | 469 | |
Less amounts representing interest | (55) | |
Total lease obligations | 414 | |
Finance Lease, Liability, Payment, Due [Abstract] | ||
2024 | 32 | |
2025 | 28 | |
2026 | 26 | |
2027 | 21 | |
2028 | 18 | |
Later years | 75 | |
Total lease payments | 200 | |
Less amounts representing interest | (52) | |
Total lease obligations | $ 148 | $ 172 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Schedule of Notional Amounts of Net Foreign Exchange Exposure by Currency) (Details) - Foreign Exchange Contract [Member] $ in Millions | Dec. 31, 2023 USD ($) |
Derivative [Line Items] | |
Total | $ 672 |
Brazilian real | |
Derivative [Line Items] | |
Total | (43) |
British pound sterling | |
Derivative [Line Items] | |
Total | 53 |
Canadian dollar | |
Derivative [Line Items] | |
Total | 23 |
Chinese yuan | |
Derivative [Line Items] | |
Total | 383 |
Euro | |
Derivative [Line Items] | |
Total | 148 |
Hungarian forint | |
Derivative [Line Items] | |
Total | 18 |
Indian rupee | |
Derivative [Line Items] | |
Total | (27) |
Indonesian rupiah | |
Derivative [Line Items] | |
Total | (9) |
Japanese yen | |
Derivative [Line Items] | |
Total | (38) |
Korean won | |
Derivative [Line Items] | |
Total | 197 |
Mexican peso | |
Derivative [Line Items] | |
Total | 109 |
Singapore dollar | |
Derivative [Line Items] | |
Total | 21 |
Swedish krona | |
Derivative [Line Items] | |
Total | (7) |
Swiss franc | |
Derivative [Line Items] | |
Total | $ (156) |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule of Changes in Fair Value of Derivatives) (Details) € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2022 EUR (€) | Jul. 31, 2022 EUR (€) | Aug. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jul. 31, 2022 USD ($) | ||
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | $ 0 | $ 0 | $ 10 | |||||||
Gain (loss) recognized in Earnings (loss) | $ (7) | $ (7) | $ (3) | |||||||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense | Interest Expense | Interest Expense | |||||||
Foreign currency forwards and swaps | Derivatives Not Designated as Hedges [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | $ 0 | $ 0 | $ 0 | |||||||
Gain (loss) recognized in Earnings (loss) | $ (19) | $ (2) | $ (13) | |||||||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Foreign exchange gain (loss), net, Other income (expense), net | Foreign exchange gain (loss), net, Other income (expense), net | Foreign exchange gain (loss), net, Other income (expense), net | |||||||
Notional Value | $ 1,954 | $ 1,954 | $ 1,265 | |||||||
Cash Flow Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | 0 | 41 | $ 34 | |||||||
Gain (loss) recognized in Earnings (loss) | 0 | 17 | 0 | |||||||
Cash Flow Hedging [Member] | Commodity Contract [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | (5) | 39 | 25 | |||||||
Gain (loss) recognized in Earnings (loss) | $ 2 | $ 23 | $ 3 | |||||||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Goods and Services Sold | Cost of Goods and Services Sold | Cost of Goods and Services Sold | |||||||
Cash Flow Hedging [Member] | Commodity Contract [Member] | Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Value | 67 | $ 67 | $ 82 | |||||||
Cash Flow Hedging [Member] | Foreign currency forwards and swaps | ||||||||||
Derivative [Line Items] | ||||||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | 5 | 2 | $ (1) | |||||||
Gain (loss) recognized in Earnings (loss) | $ 5 | $ 1 | $ 0 | |||||||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Goods and Services Sold | Cost of Goods and Services Sold | Cost of Goods and Services Sold | |||||||
Cash Flow Hedging [Member] | Foreign currency forwards and swaps | Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Value | $ 49 | |||||||||
Fair Value Hedging | Currency Swap [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Gain (loss) recognized in Earnings (loss) | [1] | $ 9 | 0 | $ 0 | ||||||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | [1] | (1) | 0 | 0 | ||||||
Net Investment Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Gain (Loss) On Non-Derivative Used In Net Investment Hedge | [2] | (280) | (114) | 134 | ||||||
Net Investment Hedging [Member] | Currency Swap [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Gain (loss) recognized in Earnings (loss) | [2] | 0 | 0 | 0 | ||||||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | [2] | (174) | (92) | 27 | ||||||
Foreign Currency Denominated Debt [Member] | Fair Value Hedging | ||||||||||
Derivative [Line Items] | ||||||||||
Notional amount of nonderivative instruments | $ 1,500 | |||||||||
Foreign Currency Denominated Debt [Member] | Net Investment Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Gain (Loss) On Non-Derivative Used In Net Investment Hedge | [2] | (106) | (22) | 107 | ||||||
Amount of Ineffectiveness on Net Investment Hedges | [2] | $ 0 | $ 0 | $ 0 | ||||||
Notional amount of nonderivative instruments | € | € 5,712 | € 5,639 | ||||||||
Acquisition Notes | Net Investment Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional amount of nonderivative instruments | € | € 1,500 | |||||||||
Senior unsecured notes due 2032, interest rate of 6.379% | Net Investment Hedging [Member] | Currency Swap [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Value | $ 500 | |||||||||
Senior unsecured notes due 2027, interest rate of 6.165% | Net Investment Hedging [Member] | Currency Swap [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Value | $ 2,000 | |||||||||
Japanese Yen Denominated Borrowings Due 2029 | Fair Value Hedging | Currency Swap [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Value | $ 500 | |||||||||
Euro Denominated Borrowings Due 2028 and 2030 | Fair Value Hedging | Currency Swap [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Value | $ 1,000 | |||||||||
Euro Denominated Borrowing Due 2028 | ||||||||||
Derivative [Line Items] | ||||||||||
Debt Instrument, Term | 5 years | |||||||||
Euro denominated borrowing Due 2030 | ||||||||||
Derivative [Line Items] | ||||||||||
Debt Instrument, Term | 7 years | |||||||||
[1] In conjunction with the 2023 Offering ( Note 11 ) in August 2023, the Company entered into a cross-currency swap to effectively convert $500 million of the issued notes into a Japanese yen-denominated borrowing at prevailing yen interest rates, maturing on July 15, 2029. The swap qualifies and has been designated as a fair value hedge of the Company's foreign currency exchange rate exposure on the long-term debt of its Japanese yen-denominated subsidiary. Additionally, in conjunction with the 2023 Offering ( Note 11 ) in August 2023, the Company entered into cross-currency swaps to effectively convert $1.0 billion of the issued notes into 5-year and 7-year euro-denominated borrowings at prevailing euro interest rates, maturing on November 15, 2028 and November 15, 2030, respectively. The swaps qualify and have been designated as fair value hedges of the Company's foreign currency exchange rate exposure on the long-term debt of its euro-denominated subsidiary. Concurrently with offering of the Acquisition USD Notes in July 2022 ( Note 11 ), the Company entered into cross-currency swaps to effectively convert $2.0 billion and $500 million of the Acquisition USD Notes into a euro-denominated borrowing at prevailing euro interest rates, maturing on July 15, 2027 and July 15, 2032, respectively. The swaps and €1.5 billion of the Acquisition Euro Notes qualify and have been designated as net investment hedges of the Company's foreign currency exchange rate exposure on the net investments of certain of its euro-denominated subsidiaries. |
Derivative Financial Instrume_5
Derivative Financial Instruments (Schedule of Offsetting Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative Asset [Abstract] | ||
Gross amount recognized | $ 183 | $ 169 |
Gross amount offset in the consolidated balance sheets | 0 | 0 |
Net amount presented in the consolidated balance sheets | 183 | 169 |
Gross amount not offset in the consolidated balance sheets | 40 | 16 |
Net amount | $ 143 | $ 153 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets, Other assets | Other assets, Other assets |
Derivative Financial Instrume_6
Derivative Financial Instruments (Schedule of Offsetting Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative Liability [Abstract] | ||
Gross amount recognized | $ 440 | $ 189 |
Gross amount offset in the consolidated balance sheets | 0 | 0 |
Net amount presented in the consolidated balance sheets | 440 | 189 |
Gross amount not offset in the consolidated balance sheets | 40 | 16 |
Net amount | $ 400 | $ 173 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities, Other liabilities | Other liabilities, Other liabilities |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) € in Millions, $ in Millions | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Asset | $ 143 | $ 153 | ||
Derivative liability | $ (400) | $ (173) | ||
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | ||
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities | ||
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | ||
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities | ||
Other Current Assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure | $ 147 | $ 117 | ||
Other Noncurrent Assets | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure | 36 | 52 | ||
Other Current Liabilities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities, Fair Value Disclosure | (90) | (63) | ||
Other Noncurrent Liabilities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities, Fair Value Disclosure | (350) | (126) | ||
Derivatives Not Designated as Hedges [Member] | Other Current Assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 9 | 9 | ||
Derivatives Not Designated as Hedges [Member] | Other Noncurrent Assets | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 | ||
Derivatives Not Designated as Hedges [Member] | Other Current Liabilities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | (16) | (3) | ||
Derivatives Not Designated as Hedges [Member] | Other Noncurrent Liabilities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | (8) | 0 | ||
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | |||
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | |||
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | |||
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | |||
Fair Value Hedging | Foreign Currency Denominated Debt [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notional amount of nonderivative instruments | 1,500 | |||
Net Investment Hedging [Member] | Foreign Currency Denominated Debt [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notional amount of nonderivative instruments | € | € 5,712 | € 5,639 | ||
Commodity Contract [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notional Value | 67 | 82 | ||
Commodity Contract [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Asset | 5 | 9 | ||
Commodity Contract [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Asset | 36 | 39 | ||
Commodity Contract [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability | (2) | (2) | ||
Commodity Contract [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability | 0 | 0 | ||
Currency Swap [Member] | Fair Value Hedging | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 40 | |||
Currency Swap [Member] | Fair Value Hedging | Designated as Hedging Instrument [Member] | Other Noncurrent Assets | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | |||
Currency Swap [Member] | Fair Value Hedging | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | (11) | |||
Currency Swap [Member] | Fair Value Hedging | Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | (61) | |||
Currency Swap [Member] | Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 93 | 99 | ||
Currency Swap [Member] | Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 13 | ||
Currency Swap [Member] | Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | (61) | (58) | ||
Currency Swap [Member] | Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | (281) | (126) | ||
Foreign Exchange Contract [Member] | Derivatives Not Designated as Hedges [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notional Value | $ 1,954 | 1,265 | ||
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notional Value | $ 49 |
Fair Value Measurements (Sche_2
Fair Value Measurements (Schedule of Carrying Values and Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Value | $ 170 | $ 170 |
Equity Securities, FV-NI and without Readily Determinable Fair Value | 0 | 0 |
Insurance contracts in nonqualified pension trusts, carrying amount | 21 | 22 |
Insurance contracts in nonqualified pension trusts, fair value | 21 | 23 |
Long-term debt, including current installments of long-term debt, carrying amount | 13,400 | 13,953 |
Long-term debt, including current installments of long-term debt, fair value | 13,662 | 13,419 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity Securities, FV-NI and without Readily Determinable Fair Value | 0 | 0 |
Insurance contracts in nonqualified pension trusts, fair value | 21 | 23 |
Long-term debt, including current installments of long-term debt, fair value | 13,514 | 13,247 |
Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity Securities, FV-NI and without Readily Determinable 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 | $ 148 | $ 172 |
Commitments and Contingencies (
Commitments and Contingencies (Equity Affiliates Narrative) (Details) - Dec. 31, 2023 - Financial Guarantee € in Millions, $ in Millions | USD ($) | EUR (€) |
Equity affiliates USD debt obligations | ||
Loss Contingencies [Line Items] | ||
Guarantee obligations, maximum exposure | $ | $ 145 | |
Equity Affiliates EUR Debt Obligations | ||
Loss Contingencies [Line Items] | ||
Guarantee obligations, maximum exposure | € | € 31 |
Commitment and Contingencies (E
Commitment and Contingencies (Environmental and Other Liabilities) (Details) € in Millions, $ in Millions | 290 Months Ended | |
Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | |
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 | $ | $ 114 | |
Indemnification percentage, other | 33.33% | 33.33% |
Divestiture Agreements [Member] | ||
Loss Contingencies [Line Items] | ||
Guarantee obligations, maximum exposure | $ | $ 116 |
Commitments and Contingencies_2
Commitments and Contingencies (Purchase Obligations Narrative) (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Unrecorded unconditional purchase obligations | $ 4,000 |
Unrecorded Unconditional Purchase Obligation, to be Paid, Year One | 683 |
Unrecorded Unconditional Purchase Obligation, to be Paid, Year Two | 565 |
Unrecorded Unconditional Purchase Obligation, to be Paid, Year Three | 452 |
Unrecorded Unconditional Purchase Obligation, to be Paid, Year Four | 369 |
Unrecorded Unconditional Purchase Obligation, to be Paid, Year Five | $ 230 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |||
Interest paid, net of amounts capitalized | $ 780 | $ 122 | $ 105 |
Taxes paid, net of refunds | 237 | 273 | 215 |
Noncash Investing and Financing Activities | |||
Accrued treasury stock repurchases | 0 | (17) | 0 |
Finance lease obligations | 2 | 28 | 0 |
Accrued capital expenditures | (26) | 40 | 23 |
Asset retirement obligations | $ 11 | $ 3 | $ 3 |
Segment Information (Schedule o
Segment Information (Schedule of Business Segments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Segment Reporting Information [Line Items] | |||||
Net sales | $ 10,940 | $ 9,673 | $ 8,537 | ||
Other (charges) gains, net | (68) | (8) | 3 | ||
Operating profit (loss) | 1,687 | 1,378 | 1,946 | ||
Equity in net earnings (loss) of affiliates | 102 | 220 | 146 | ||
Depreciation and amortization | 706 | 462 | 371 | ||
Capital expenditures | [1] | 542 | 583 | 490 | |
Goodwill and intangible assets, net | 10,952 | 11,247 | |||
Total assets | 26,597 | 26,272 | |||
Increase (decrease) in accrued capital expenditures | (26) | 40 | 23 | ||
Engineered Materials | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 6,149 | 4,024 | 2,718 | ||
Equity in net earnings (loss) of affiliates | [2] | 88 | 209 | 133 | |
Acetyl Chain | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | [3] | 4,791 | 5,649 | 5,819 | |
Corporate and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Equity in net earnings (loss) of affiliates | 14 | 11 | 13 | ||
Operating Segments [Member] | Engineered Materials | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 6,149 | 4,024 | 2,718 | ||
Other (charges) gains, net | (56) | (7) | 6 | ||
Operating profit (loss) | 1,083 | [4] | 429 | 411 | |
Equity in net earnings (loss) of affiliates | 83 | 202 | 126 | ||
Depreciation and amortization | 462 | 226 | 144 | ||
Capital expenditures | 237 | 178 | 154 | ||
Goodwill and intangible assets, net | 10,525 | 10,826 | |||
Total assets | 17,930 | 20,611 | |||
Operating Segments [Member] | Acetyl Chain | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | [5] | 4,884 | 5,743 | 5,894 | |
Other (charges) gains, net | (4) | 0 | 1 | ||
Operating profit (loss) | 1,109 | 1,447 | 1,875 | ||
Equity in net earnings (loss) of affiliates | 6 | 7 | 7 | ||
Depreciation and amortization | 217 | 213 | 210 | ||
Capital expenditures | 207 | 352 | 311 | ||
Goodwill and intangible assets, net | 427 | 421 | |||
Total assets | 5,538 | 5,471 | |||
Corporate, Non-Segment [Member] | Corporate and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 0 | 0 | 0 | ||
Other (charges) gains, net | (8) | (1) | (4) | ||
Operating profit (loss) | (505) | (498) | (340) | ||
Equity in net earnings (loss) of affiliates | 13 | 11 | 13 | ||
Depreciation and amortization | 27 | 23 | 17 | ||
Capital expenditures | 98 | 53 | 25 | ||
Goodwill and intangible assets, net | 0 | 0 | |||
Total assets | 3,129 | 190 | |||
Intersegment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (93) | (94) | (75) | ||
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] | Acetyl Chain | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ 93 | $ 94 | $ 75 | ||
[1] Includes a decrease in accrued capital expenditures of $26 million, an increase in accrued capital expenditures of $40 million and an increase in accrued capital expenditures of $23 million for the years ended December 31, 2023, 2022 and 2021, respectively. Engineered Materials includes an equity method investment with losses in excess of its carrying amount due to the Company's guarantee of various debt obligations under agreements with third parties related to an equity affiliate ( Note 19 ). This equity method investment was recorded in Current Other liabilities ( Note 10 ) as of December 31, 2023 and December 31, 2022. Excludes intersegment sales of $93 million, $94 million and $75 million for the years ended December 31, 2023, 2022 and 2021, respectively. Includes a $515 million gain related to the formation of the Nutrinova joint venture included in Gain (loss) on disposition of businesses and assets, net in the consolidated statements of operations ( N ote 4 ). Includes intersegment sales of $93 million, $94 million and $75 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Segment Information (Schedule_2
Segment Information (Schedule of Geographical Segments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 10,940 | $ 9,673 | $ 8,537 |
Property, plant and equipment, net | 5,584 | 5,584 | |
BELGIUM | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 499 | 251 | 268 |
Property, plant and equipment, net | 112 | 113 | |
BRAZIL | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 140 | 122 | 92 |
CANADA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 146 | 120 | 98 |
Property, plant and equipment, net | 121 | 128 | |
CHINA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,952 | 1,525 | 1,621 |
Property, plant and equipment, net | 568 | 688 | |
FRANCE | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 84 | 31 | 28 |
GERMANY | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 2,468 | 2,934 | 2,675 |
Property, plant and equipment, net | 843 | 937 | |
INDIA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 150 | 55 | 34 |
ITALY | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 77 | 7 | 0 |
Property, plant and equipment, net | 74 | 64 | |
JAPAN | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 312 | 87 | 15 |
Property, plant and equipment, net | 43 | 52 | |
MEXICO | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 361 | 359 | 330 |
Property, plant and equipment, net | 44 | 52 | |
NETHERLANDS | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property, plant and equipment, net | 48 | 52 | |
SINGAPORE | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,146 | 1,209 | 1,202 |
Property, plant and equipment, net | 82 | 99 | |
KOREA, REPUBLIC OF | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 154 | 68 | 8 |
Property, plant and equipment, net | 64 | 79 | |
SPAIN | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 58 | 11 | 0 |
SWITZERLAND | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 223 | 165 | 140 |
Property, plant and equipment, net | 58 | 73 | |
UNITED KINGDOM | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 86 | 13 | 0 |
Property, plant and equipment, net | 118 | 118 | |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 2,821 | 2,562 | 2,004 |
Property, plant and equipment, net | 3,286 | 3,032 | |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 263 | 154 | $ 22 |
Property, plant and equipment, net | $ 123 | $ 97 |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregated Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 10,940 | $ 9,673 | $ 8,537 | |
Intersegment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | (93) | (94) | (75) | |
Engineered Materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 6,149 | 4,024 | 2,718 | |
Acetyl Chain | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [1] | 4,791 | 5,649 | 5,819 |
Acetyl Chain | Intersegment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 93 | 94 | 75 | |
North America [Member] | Engineered Materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,780 | 1,197 | 774 | |
North America [Member] | Acetyl Chain | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,448 | 1,713 | 1,533 | |
Europe and Africa | Engineered Materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,941 | 1,538 | 1,155 | |
Europe and Africa | Acetyl Chain | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,680 | 1,961 | 1,914 | |
Asia Pacific [Member] | Engineered Materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,274 | 1,180 | 703 | |
Asia Pacific [Member] | Acetyl Chain | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,543 | 1,811 | 2,214 | |
South America [Member] | Engineered Materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 154 | 109 | 86 | |
South America [Member] | Acetyl Chain | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 120 | $ 164 | $ 158 | |
[1] Excludes intersegment sales of $93 million, $94 million and $75 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Earnings (Loss) Per Share (Sche
Earnings (Loss) Per Share (Schedule of Earnings (Loss) Per Share) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Amounts attributable to Celanese Corporation | ||||
Earnings (loss) from continuing operations | $ 1,969 | $ 1,902 | $ 1,912 | |
Earnings (loss) from discontinued operations | (9) | (8) | (22) | |
Net earnings (loss) attributable to Celanese Corporation | $ 1,960 | $ 1,894 | $ 1,890 | |
Weighted average shares - basic | 108,848,962 | 108,380,082 | 111,224,017 | |
Incremental shares attributable to equity awards | [1] | 530,702 | 855,294 | 860,395 |
Weighted average shares - diluted | 109,379,664 | 109,235,376 | 112,084,412 | |
Share-based Payment Arrangement, Option [Member] | ||||
Amounts attributable to Celanese Corporation | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 202,876 | 0 | 0 | |
Time Restricted Stock Units (RSUs) [Member] | ||||
Amounts attributable to Celanese Corporation | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 39,465 | 154,172 | 555 | |
[1] Excludes options to purchase 202,876, 0 and 0 shares of Common Stock for the years ended December 31, 2023, 2022 and 2021, respectively, as their effect would have been antidilutive. Excludes 39,465, 154,172 and 555 equity award shares for the years ended December 31, 2023, 2022 and 2021, respectively, as their effect would have been antidilutive. |