UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q



þ☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the quarterly period ended ~~September 30, 2017~~
			OrJune 30, 2023
o			Or
☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

(Commission File ~~Number)~~Number: 001-32410

CELANESE CORPORATION

(Exact Name of Registrant as Specified in its Charter)



Delaware		98-0420726
(State or Other Jurisdiction of Incorporation or Organization)		~~98-0420726~~ (I.R.S. Employer Identification No.)

~~222 W. Las Colinas Blvd., Suite 900N~~ ~~Irving, TX~~ ~~(Address of Principal Executive Offices)~~	~~75039-5421~~ ~~(Zip Code)~~

222 W. Las Colinas Blvd., Suite 900N

Irving, TX 75039-5421

(Address of Principal Executive Offices and zip code)

(972) 443-4000

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, par value $0.0001 per share	CE	The New York Stock Exchange
1.125% Senior Notes due 2023	CE /23	The New York Stock Exchange
1.250% Senior Notes due 2025	CE /25	The New York Stock Exchange
4.777% Senior Notes due 2026	CE /26A	The New York Stock Exchange
2.125% Senior Notes due 2027	CE /27	The New York Stock Exchange
0.625% Senior Notes due 2028	CE /28	The New York Stock Exchange
5.337% Senior Notes due 2029	CE /29A	The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ☑ No o☐

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files). Yes þ☑ No o☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer þAccelerated filer ☐Non-accelerated filer ☐Smaller reporting company ☐Emerging growth company ☐



~~Large accelerated filer~~ þ	~~Accelerated filer~~ o	~~Non-accelerated filer~~ o	~~Smaller reporting company~~ o	~~Emerging growth company~~ o

~~(Do not check if a smaller reporting company)~~

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o☐ No þ☑

The number of outstanding shares of the registrant's ~~Series A common stock,~~Common Stock, $0.0001 par value, as of ~~October 10, 2017~~August 4, 2023 was ~~135,636,382.~~

108,852,226.

Table of Contents

CELANESE CORPORATION AND SUBSIDIARIES

Form 10-Q

For the Quarterly Period Ended ~~September~~June 30, ~~2017~~2023

TABLE OF CONTENTS


				Page
			~~Page~~
	PART I - FINANCIAL INFORMATION
Item 1.		Financial Statements		3
		a) a ) Unaudited Interim Consolidated Statements of Operations for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~202 3 and ~~2016~~20 2 2		3
		b) Unaudited Interim Consolidated Statements of Comprehensive Income (Loss) for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~202 3 and ~~2016~~202 2		4
		c) Unaudited Consolidated Balance Sheets as of ~~September~~June 30 ~~2017~~, 2023 and December 31, ~~2016~~2022		5
		d) Unaudited Interim Consolidated ~~Statement~~Statements of Equity for the ~~nine~~three and six months ended ~~September~~June 30, ~~2017~~202 3 and 202 2		6
		e) e ) Unaudited Interim Consolidated Statements of Cash Flows for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~202 3 and ~~2016~~202 2		78
		f) Notes to the Unaudited Interim Consolidated Financial Statements		89
Item 2.		Management's Discussion and Analysis of Financial Condition and Results of Operations		4231
Item 3.		Quantitative and Qualitative Disclosures about Market Risk		5646
Item 4.		Controls and Procedures		5646

		PART II - OTHER INFORMATION
Item 1.		Legal Proceedings		5747
Item 1A.		Risk Factors		5747
Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds		5747
Item 3.		Defaults Upon Senior Securities		5747
Item 4.		Mine Safety Disclosures		5747
Item 5.		Other Information		5747
Item 6.		Exhibits		5848
Signatures				5950

Table of Contents

Item 1. Financial Statements

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS


	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
	(In $ millions, except share and per share data)
Net sales	2,795	2,486	5,648	5,024
Cost of sales	(2,109)	(1,781)	(4,331)	(3,574)
Gross profit	686	705	1,317	1,450
Selling, general and administrative expenses	(274)	(197)	(559)	(371)
Amortization of intangible assets	(42)	(11)	(83)	(22)
Research and development expenses	(40)	(26)	(82)	(50)
Other (charges) gains, net	(10)	1	(33)	—
Foreign exchange gain (loss), net	15	(1)	21	(2)
Gain (loss) on disposition of businesses and assets, net	—	12	5	9
Operating profit (loss)	335	483	586	1,014
Equity in net earnings (loss) of affiliates	23	60	38	116
Non-operating pension and other postretirement employee benefit (expense) income	(2)	25	(1)	49
Interest expense	(182)	(48)	(364)	(83)

Interest income	7	1	15	2
Dividend income - equity investments	31	36	65	73
Other income (expense), net	4	(3)	(2)	(1)
Earnings (loss) from continuing operations before tax	216	554	337	1,170
Income tax (provision) benefit	4	(112)	(21)	(224)
Earnings (loss) from continuing operations	220	442	316	946
Earnings (loss) from operation of discontinued operations	—	(8)	(3)	(8)

Income tax (provision) benefit from discontinued operations	1	2	1	2
Earnings (loss) from discontinued operations	1	(6)	(2)	(6)
Net earnings (loss)	221	436	314	940
Net (earnings) loss attributable to noncontrolling interests	(1)	(2)	(3)	(4)
Net earnings (loss) attributable to Celanese Corporation	220	434	311	936
Amounts attributable to Celanese Corporation
Earnings (loss) from continuing operations	219	440	313	942
Earnings (loss) from discontinued operations	1	(6)	(2)	(6)
Net earnings (loss)	220	434	311	936
Earnings (loss) per common share - basic
Continuing operations	2.01	4.06	2.88	8.70
Discontinued operations	0.01	(0.06)	(0.02)	(0.06)
Net earnings (loss) - basic	2.02	4.00	2.86	8.64
Earnings (loss) per common share - diluted
Continuing operations	2.00	4.03	2.86	8.63
Discontinued operations	0.01	(0.05)	(0.01)	(0.06)
Net earnings (loss) - diluted	2.01	3.98	2.85	8.57
Weighted average shares - basic	108,886,678	108,392,155	108,761,071	108,289,603
Weighted average shares - diluted	109,306,331	109,123,349	109,281,364	109,158,055

Three Months Ended
September 30, Nine Months Ended
September 30,
2017 2016 2017 2016
(In $ millions, except share and per share data)
Net sales 1,566
1,323
4,547
4,078
Cost of sales (1,181 ) (968 ) (3,443 ) (2,995 )
Gross profit 385
355
1,104
1,083
Selling, general and administrative expenses (112 ) (81 ) (291 ) (232 )
Amortization of intangible assets (5 ) (3 ) (14 ) (7 )
Research and development expenses (19 ) (20 ) (53 ) (58 )
Other (charges) gains, net —
(3 ) (58 ) (12 )
Foreign exchange gain (loss), net 4
(1 ) —
1
Gain (loss) on disposition of businesses and assets, net (1 ) (1 ) (4 ) 1
Operating profit (loss) 252
246
684
776
Equity in net earnings (loss) of affiliates 50
41
135
114
Interest expense (32 ) (28 ) (91 ) (91 )
Refinancing expense —
(4 ) —
(6 )
Interest income 1
—
2
1
Dividend income - cost investments 24
26
82
82
Other income (expense), net (6 ) —
(2 ) (2 )
Earnings (loss) from continuing operations before tax 289
281
810
874
Income tax (provision) benefit (57 ) (15 ) (153 ) (127 )
Earnings (loss) from continuing operations 232
266
657
747
Earnings (loss) from operation of discontinued operations (5 ) (4 ) (14 ) (3 )
Income tax (provision) benefit from discontinued operations 1
1
2
1
Earnings (loss) from discontinued operations (4 ) (3 ) (12 ) (2 )
Net earnings (loss) 228
263
645
745
Net (earnings) loss attributable to noncontrolling interests (2 ) (1 ) (5 ) (5 )
Net earnings (loss) attributable to Celanese Corporation 226
262
640
740
Amounts attributable to Celanese Corporation

Earnings (loss) from continuing operations 230
265
652
742
Earnings (loss) from discontinued operations (4 ) (3 ) (12 ) (2 )
Net earnings (loss) 226
262
640
740
Earnings (loss) per common share - basic

Continuing operations 1.68
1.84
4.71
5.08
Discontinued operations (0.03 ) (0.02 ) (0.09 ) (0.01 )
Net earnings (loss) - basic 1.65
1.82
4.62
5.07
Earnings (loss) per common share - diluted

Continuing operations 1.68
1.83
4.69
5.06
Discontinued operations (0.03 ) (0.02 ) (0.09 ) (0.01 )
Net earnings (loss) - diluted 1.65
1.81
4.60
5.05
Weighted average shares - basic 136,579,077
144,005,098
138,599,330
145,959,821
Weighted average shares - diluted 136,951,923
144,601,465
138,988,321
146,585,560

See the accompanying notes to the unaudited interim consolidated financial statements.

Table of Contents

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME (LOSS)


	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
	(In $ millions)
Net earnings (loss)	221	436	314	940
Other comprehensive income (loss), net of tax

Foreign currency translation gain (loss)	(201)	(131)	(188)	(152)
Gain (loss) on cash flow hedges	—	26	4	41
Pension and postretirement benefits	1	—	—	2
Total other comprehensive income (loss), net of tax	(200)	(105)	(184)	(109)
Total comprehensive income (loss), net of tax	21	331	130	831
Comprehensive (income) loss attributable to noncontrolling interests	(1)	(2)	(3)	(4)
Comprehensive income (loss) attributable to Celanese Corporation	20	329	127	827

Three Months Ended
September 30, Nine Months Ended
September 30,
2017 2016 2017 2016
(In $ millions)
Net earnings (loss) 228
263
645
745
Other comprehensive income (loss), net of tax

Unrealized gain (loss) on marketable securities —
(1 ) 1
—
Foreign currency translation 42
(8 ) 148
38
Gain (loss) on cash flow hedges —
—
(1 ) 1
Pension and postretirement benefits (1 ) —
4
(1 )
Total other comprehensive income (loss), net of tax 41
(9 ) 152
38
Total comprehensive income (loss), net of tax 269
254
797
783
Comprehensive (income) loss attributable to noncontrolling interests (2 ) (1 ) (5 ) (5 )
Comprehensive income (loss) attributable to Celanese Corporation 267
253
792
778

See the accompanying notes to the unaudited interim consolidated financial statements.

Table of Contents

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED CONSOLIDATED BALANCE SHEETS


	As of September 30, 2017		As of December 31, 2016			As of June 30, 2023	As of December 31, 2022
	(In $ millions, except share data)					(In $ millions, except share data)
ASSETS					ASSETS
Current Assets					Current Assets
Cash and cash equivalents (variable interest entity restricted - 2017: $23; 2016: $18)	461		638
Trade receivables - third party and affiliates (net of allowance for doubtful accounts - 2017: $8; 2016: $6; variable interest entity restricted - 2017: $5; 2016: $4)	989		801
Cash and cash equivalents					Cash and cash equivalents	1,296	1,508
Trade receivables - third party and affiliates					Trade receivables - third party and affiliates	1,338	1,379
Non-trade receivables, net	260		223		Non-trade receivables, net	625	675
Inventories	809		720		Inventories	2,514	2,808
Marketable securities, at fair value	31		30

Assets held for sale					Assets held for sale	211	—
Other assets	63		60		Other assets	268	241
Total current assets	2,613		2,472		Total current assets	6,252	6,611
Investments in affiliates	938		852		Investments in affiliates	1,028	1,062
Property, plant and equipment (net of accumulated depreciation - 2017: $2,508; 2016: $2,239; variable interest entity restricted - 2017: $706; 2016: $734)	3,706		3,577
Property, plant and equipment (net of accumulated depreciation - 2023: $3,830; 2022: $3,687)					Property, plant and equipment (net of accumulated depreciation - 2023: $3,830; 2022: $3,687)	5,541	5,584
Operating lease right-of-use assets					Operating lease right-of-use assets	403	413
Deferred income taxes	201		159		Deferred income taxes	832	808
Other assets (variable interest entity restricted - 2017: $6; 2016: $9)	306		307
Other assets					Other assets	523	547
Goodwill	995		796		Goodwill	7,063	7,142
Intangible assets (variable interest entity restricted - 2017: $25; 2016: $26)	303		194
Intangible assets, net					Intangible assets, net	4,007	4,105
Total assets	9,062		8,357		Total assets	25,649	26,272
LIABILITIES AND EQUITY					LIABILITIES AND EQUITY
Current Liabilities					Current Liabilities
Short-term borrowings and current installments of long-term debt - third party and affiliates	435		118		Short-term borrowings and current installments of long-term debt - third party and affiliates	1,507	1,306
Trade payables - third party and affiliates	695		625		Trade payables - third party and affiliates	1,243	1,518
Liabilities held for sale					Liabilities held for sale	19	—
Other liabilities	343		322		Other liabilities	1,146	1,201

Income taxes payable	77		12		Income taxes payable	7	43
Total current liabilities	1,550		1,077		Total current liabilities	3,922	4,068
Long-term debt, net of unamortized deferred financing costs	2,954		2,890		Long-term debt, net of unamortized deferred financing costs	12,889	13,373
Deferred income taxes	195		130		Deferred income taxes	1,220	1,242
Uncertain tax positions	153		131		Uncertain tax positions	285	322
Benefit obligations	845		893		Benefit obligations	406	411
Operating lease liabilities					Operating lease liabilities	347	364
Other liabilities	230		215		Other liabilities	492	387
Commitments and Contingencies					Commitments and Contingencies
Stockholders' Equity
Preferred stock, $0.01 par value, 100,000,000 shares authorized (2017 and 2016: 0 issued and outstanding)	—		—
Series A common stock, $0.0001 par value, 400,000,000 shares authorized (2017: 168,024,095 issued and 135,636,382 outstanding; 2016: 167,611,357 issued and 140,660,447 outstanding)	—		—
Series B common stock, $0.0001 par value, 100,000,000 shares authorized (2017 and 2016: 0 issued and outstanding)	—		—
Treasury stock, at cost (2017: 32,387,713 shares; 2016: 26,950,910 shares)	(2,031	)	(1,531	)
Shareholders' Equity					Shareholders' Equity
Preferred stock, $0.01 par value, 100,000,000 shares authorized (2023 and 2022: 0 issued and outstanding)					Preferred stock, $0.01 par value, 100,000,000 shares authorized (2023 and 2022: 0 issued and outstanding)	—	—
Common stock, $0.0001 par value, 400,000,000 shares authorized (2023: 170,458,836 issued and 108,847,435 outstanding; 2022: 170,135,425 issued and 108,473,932 outstanding)					Common stock, $0.0001 par value, 400,000,000 shares authorized (2023: 170,458,836 issued and 108,847,435 outstanding; 2022: 170,135,425 issued and 108,473,932 outstanding)	—	—

Treasury stock, at cost (2023: 61,611,401 shares; 2022: 61,661,493 shares)					Treasury stock, at cost (2023: 61,611,401 shares; 2022: 61,661,493 shares)	(5,490)	(5,491)
Additional paid-in capital	171		157		Additional paid-in capital	383	372
Retained earnings	4,781		4,320		Retained earnings	11,433	11,274
Accumulated other comprehensive income (loss), net	(206	)	(358	)	Accumulated other comprehensive income (loss), net	(702)	(518)
Total Celanese Corporation stockholders' equity	2,715		2,588
Total Celanese Corporation shareholders' equity					Total Celanese Corporation shareholders' equity	5,624	5,637
Noncontrolling interests	420		433		Noncontrolling interests	464	468
Total equity	3,135		3,021		Total equity	6,088	6,105
Total liabilities and equity	9,062		8,357		Total liabilities and equity	25,649	26,272

See the accompanying notes to the unaudited interim consolidated financial statements.

Table of Contents

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED INTERIM CONSOLIDATED ~~STATEMENT~~STATEMENTS OF EQUITY


	Three Months Ended June 30,
	2023		2022
	Shares	Amount	Shares	Amount
	(In $ millions, except share data)




Common Stock
Balance as of the beginning of the period	108,786,738	—	108,307,341	—


Stock awards	60,697	—	38,694	—
Balance as of the end of the period	108,847,435	—	108,346,035	—
Treasury Stock
Balance as of the beginning of the period	61,661,493	(5,491)	61,736,289	(5,492)

Issuance of treasury stock under stock plans	(50,092)	1	(32,243)	—
Balance as of the end of the period	61,611,401	(5,490)	61,704,046	(5,492)
Additional Paid-In Capital
Balance as of the beginning of the period		365		326
Stock-based compensation, net of tax		18		18

Balance as of the end of the period		383		344
Retained Earnings
Balance as of the beginning of the period		11,289		10,106

Net earnings (loss) attributable to Celanese Corporation		220		434
Common stock dividends		(76)		(74)
Balance as of the end of the period		11,433		10,466
Accumulated Other Comprehensive Income (Loss), Net
Balance as of the beginning of the period		(502)		(333)
Other comprehensive income (loss), net of tax		(200)		(105)
Balance as of the end of the period		(702)		(438)
Total Celanese Corporation shareholders' equity		5,624		4,880
Noncontrolling Interests
Balance as of the beginning of the period		469		346
Net earnings (loss) attributable to noncontrolling interests		1		2

Distributions/dividends to noncontrolling interests		(6)		(3)

Balance as of the end of the period		464		345
Total equity		6,088		5,225

Nine Months Ended
September 30, 2017
Shares Amount
(In $ millions, except share data)
Series A Common Stock
Balance as of the beginning of the period 140,660,447
—
Stock option exercises 20,151
—
Purchases of treasury stock (5,436,803 ) —
Stock awards 392,587
—
Balance as of the end of the period 135,636,382
—
Treasury Stock
Balance as of the beginning of the period 26,950,910
(1,531 )
Purchases of treasury stock, including related fees 5,436,803
(500 )
Balance as of the end of the period 32,387,713
(2,031 )
Additional Paid-In Capital
Balance as of the beginning of the period 157
Stock-based compensation, net of tax 13
Stock option exercises, net of tax 1
Balance as of the end of the period 171
Retained Earnings
Balance as of the beginning of the period 4,320
Cumulative effect adjustment from adoption of new accounting standard (Note 1)
(1 )
Net earnings (loss) attributable to Celanese Corporation 640
Series A common stock dividends (178 )
Balance as of the end of the period 4,781
Accumulated Other Comprehensive Income (Loss), Net
Balance as of the beginning of the period (358 )
Other comprehensive income (loss), net of tax 152
Balance as of the end of the period (206 )
Total Celanese Corporation stockholders' equity 2,715
Noncontrolling Interests
Balance as of the beginning of the period 433
Net earnings (loss) attributable to noncontrolling interests 5
(Distributions to) contributions from noncontrolling interests (18 )
Balance as of the end of the period 420
Total equity 3,135

See the accompanying notes to the unaudited interim consolidated financial statements.

Table of Contents

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF EQUITY


	Six Months Ended June 30,
	2023		2022
	Shares	Amount	Shares	Amount
	(In $ millions, except share data)




Common Stock
Balance as of the beginning of the period	108,473,932	—	108,023,735	—


Stock awards	373,503	—	322,300	—
Balance as of the end of the period	108,847,435	—	108,346,035	—
Treasury Stock
Balance as of the beginning of the period	61,661,493	(5,491)	61,736,289	(5,492)

Issuance of treasury stock under stock plans	(50,092)	1	(32,243)	—
Balance as of the end of the period	61,611,401	(5,490)	61,704,046	(5,492)
Additional Paid-In Capital
Balance as of the beginning of the period		372		333
Stock-based compensation, net of tax		11		11

Balance as of the end of the period		383		344
Retained Earnings
Balance as of the beginning of the period		11,274		9,677

Net earnings (loss) attributable to Celanese Corporation		311		936
Common stock dividends		(152)		(147)
Balance as of the end of the period		11,433		10,466
Accumulated Other Comprehensive Income (Loss), Net
Balance as of the beginning of the period		(518)		(329)
Other comprehensive income (loss), net of tax		(184)		(109)
Balance as of the end of the period		(702)		(438)
Total Celanese Corporation shareholders' equity		5,624		4,880
Noncontrolling Interests
Balance as of the beginning of the period		468		348
Net earnings (loss) attributable to noncontrolling interests		3		4

Distributions/dividends to noncontrolling interests		(7)		(7)
Balance as of the end of the period		464		345
Total equity		6,088		5,225

See the accompanying notes to the unaudited interim consolidated financial statements.

Table of Contents

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS


	Six Months Ended June 30,
	2023	2022
	(In $ millions)
Operating Activities
Net earnings (loss)	314	940
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities

Depreciation, amortization and accretion	359	213
Pension and postretirement net periodic benefit cost	7	(42)
Pension and postretirement contributions	(24)	(23)


Deferred income taxes, net	(3)	15
(Gain) loss on disposition of businesses and assets, net	(4)	(8)
Stock-based compensation	32	31
Undistributed earnings in unconsolidated affiliates	(15)	(10)
Other, net	(4)	5
Operating cash provided by (used in) discontinued operations	(4)	(19)
Changes in operating assets and liabilities
Trade receivables - third party and affiliates, net	(10)	(216)
Inventories	220	(251)
Other assets	187	22
Trade payables - third party and affiliates	(211)	169
Other liabilities	(178)	(15)
Net cash provided by (used in) operating activities	666	811
Investing Activities
Capital expenditures on property, plant and equipment	(309)	(261)
Acquisitions, net of cash acquired	—	(14)
Proceeds from sale of businesses and assets, net	9	16

Other, net	(41)	(26)
Net cash provided by (used in) investing activities	(341)	(285)
Financing Activities
Net change in short-term borrowings with maturities of 3 months or less	(300)	19
Proceeds from short-term borrowings	349	—
Repayments of short-term borrowings	(370)	—

Repayments of long-term debt	(13)	(14)
Purchases of treasury stock, including related fees	—	(17)

Common stock dividends	(152)	(147)
Distributions to noncontrolling interests	(7)	(7)

Issuance cost of bridge facility	—	(63)
Other, net	(23)	(25)
Net cash provided by (used in) financing activities	(516)	(254)
Exchange rate effects on cash and cash equivalents	(21)	(25)
Net increase (decrease) in cash and cash equivalents	(212)	247
Cash and cash equivalents as of beginning of period	1,508	536
Cash and cash equivalents as of end of period	1,296	783

Nine Months Ended
September 30,
2017 2016
(In $ millions)
Operating Activities
Net earnings (loss) 645
745
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities
Asset impairments —
1
Depreciation, amortization and accretion 231
223
Pension and postretirement net periodic benefit cost (60 ) (40 )
Pension and postretirement contributions (36 ) (38 )
Deferred income taxes, net (5 ) 39
(Gain) loss on disposition of businesses and assets, net 4
1
Stock-based compensation 32
23
Undistributed earnings in unconsolidated affiliates (19 ) 2
Other, net 8
11
Operating cash provided by (used in) discontinued operations 7
—
Changes in operating assets and liabilities
Trade receivables - third party and affiliates, net (122 ) (82 )
Inventories (14 ) 36
Other assets (24 ) 53
Trade payables - third party and affiliates 41
16
Other liabilities 57
(50 )
Net cash provided by (used in) operating activities 745
940
Investing Activities
Capital expenditures on property, plant and equipment (180 ) (186 )
Acquisitions, net of cash acquired (269 ) —
Proceeds from sale of businesses and assets, net 1
8
Other, net (9 ) (14 )
Net cash provided by (used in) investing activities (457 ) (192 )
Financing Activities
Net change in short-term borrowings with maturities of 3 months or less 224
(347 )
Proceeds from short-term borrowings 150
39
Repayments of short-term borrowings (91 ) (76 )
Proceeds from long-term debt —
1,509
Repayments of long-term debt (65 ) (1,095 )
Purchases of treasury stock, including related fees (500 ) (300 )
Stock option exercises 1
3
Series A common stock dividends (178 ) (150 )
(Distributions to) contributions from noncontrolling interests (18 ) (15 )
Other, net (19 ) (35 )
Net cash provided by (used in) financing activities (496 ) (467 )
Exchange rate effects on cash and cash equivalents 31
4
Net increase (decrease) in cash and cash equivalents (177 ) 285
Cash and cash equivalents as of beginning of period 638
967
Cash and cash equivalents as of end of period 461
1,252

See the accompanying notes to the unaudited interim consolidated financial statements.

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CELANESE CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

1. Description of the Company and Basis of Presentation

Description of the Company

Celanese Corporation and its subsidiaries (collectively, the "Company") is a global ~~technology~~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 ~~business involves processing~~broad product portfolio serves a diverse set of end-use applications including automotive, chemical ~~raw materials, such as methanol, carbon monoxide~~additives, construction, consumer and ~~ethylene,~~industrial adhesives, consumer and ~~natural products, including wood pulp, into value-added chemicals, thermoplastic polymers~~medical, energy storage, filtration, food and ~~other chemical-based products.~~beverage, paints and coatings, paper and packaging, performance industrial and textiles.

Definitions

In this Quarterly Report on Form 10-Q ("Quarterly Report"), the term "Celanese" refers to Celanese Corporation, a Delaware corporation, and not its subsidiaries. The term "Celanese ~~US"~~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 unaudited interim consolidated financial statements for the three and ~~nine~~six months ended~~September~~ June 30, ~~2017~~2023 and ~~2016~~2022 contained in this Quarterly Report were prepared in accordance with accounting principles generally accepted in the United States of America ("USU.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 unaudited interim consolidated financial statements and other financial information included in this Quarterly Report, unless otherwise specified, have been presented to separately show the effects of discontinued operations.

In the opinion of management, the accompanying unaudited consolidated balance sheets and related unaudited interim consolidated statements of operations, comprehensive income (loss), cash flows and equity include all adjustments, consisting only of normal recurring items necessary for their fair presentation in conformity with USU.S. GAAP. Certain information and footnote disclosures normally included in financial statements prepared in accordance with USU.S. GAAP have been condensed or omitted in accordance with rules and regulations of the Securities and Exchange Commission ("SEC"). These unaudited interim consolidated financial statements should be read in conjunction with the Company's consolidated financial statements as of and for the year ended December 31, ~~2016~~,2022, filed on February ~~10, 2017~~24, 2023 with the SEC as part of the Company's Annual Report on Form 10-K.

Operating results for the three and ~~nine~~six months ended~~September~~ June 30, ~~2017~~2023 are not necessarily indicative of the results to be expected for the entire year.

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 Quarterly Report.

For those consolidated ventures in which the Company owns or is exposed to less than 100% of the economics, the outside ~~stockholders'~~shareholders' interests are shown as noncontrolling interests.

~~The Company has reclassified certain prior period amounts to conform to the current period's presentation.~~

Estimates and Assumptions

The preparation of unaudited interim consolidated financial statements in conformity with USU.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 unaudited interim 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

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and other postretirement benefits, asset retirement obligations, environmental liabilities and loss contingencies, among others. Actual results could differ from those estimates.

~~Change in accounting policy regarding share-based compensation~~

Historically, the Company recognized share-based compensation net of estimated forfeitures over the vesting period of the respective grant. Effective January 1, 2017, the Company elected to change its accounting policy to recognize forfeitures as they occur. The new forfeiture policy election was adopted using a modified retrospective approach with a cumulative effect adjustment of $1 million to Retained earnings as of January 1, 2017. See ~~Note 2 - Recent Accounting Pronouncements~~ ~~for further information.~~

2. Recent Accounting Pronouncements

~~The following table provides a brief description of~~There are no recent Accounting Standard Updates ~~("ASU")~~ issued by the Financial Accounting Standards Board ~~("FASB"):~~



~~Standard~~	~~Description~~	~~Effective Date~~	~~Effect on the Financial Statements~~which are expected to materially impact the Company's financial position, operating results or ~~Other Significant Matters~~
~~In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities.~~	~~The new guidance improves the~~ financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results.	~~January 1, 2019. Early adoption is permitted.~~	~~The Company is currently evaluating the impact of adoption on its financial statements and related disclosures, but does not expect adoption will have a material impact.~~

~~In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.~~	~~The new guidance clarifies the presentation and classification of the components of net periodic benefit costs in the consolidated statement of operations.~~	~~January 1, 2018. Early adoption is permitted.~~	~~The Company is currently evaluating the impact of adoption on its financial statements and related disclosures.~~

~~In January 2017, the FASB issued ASU 2017-04, Intangibles: Goodwill and Other: Simplifying the Test for Goodwill Impairment.~~	~~The new guidance simplifies subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test.~~	~~January 1, 2020. Early adoption is permitted.~~	The Company adopted the new guidance during the three months ended September 30, 2017, as part of the FASB's simplification initiative. The adoption of the new guidance did not have a material impact to the Company.

~~In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory.~~	The new guidance requires the income tax consequences of an intra-entity transfer of assets other than inventory to be recognized when the transfer occurs rather than deferring until an outside sale has occurred.	~~January 1, 2018. Early adoption is permitted.~~	~~The Company does not expect adoption will have a material impact on its financial statements and related disclosures.~~

~~In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments.~~	~~The new guidance clarifies the presentation and classification of certain cash receipts and cash payments in the statement of cash flows.~~	~~January 1, 2018. Early adoption is permitted.~~	~~The Company does not expect adoption will have a material impact on its financial statements and related disclosures.~~

~~In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting.~~	The new guidance simplifies several aspects of the accounting for share-based payment transactions, including the timing of recognizing income tax consequences, classification of awards as either equity or liabilities, calculation of compensation expense and classification on the statement of cash flows.	~~January 1, 2017. Early adoption is permitted.~~	~~The Company adopted the new guidance effective January 1, 2017, as part of the FASB's simplification initiative. The adoption of the new guidance did not have a material impact to the Company.~~ ~~The Company changed its accounting policy regarding the recognition of stock-based compensation expense as part of the adoption (Note 1~~).

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~~Standard~~	~~Description~~	~~Effective Date~~	~~Effect on the Financial Statements or Other Significant Matters~~
~~In February 2016, the FASB issued ASU 2016-02, Leases.~~	The new guidance supersedes the lease guidance under FASB Accounting Standards Codification ("ASC") Topic 840, Leases, resulting in the creation of FASB ASC Topic 842, Leases. The guidance requires a lessee to recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for both finance and operating leases.	~~January 1, 2019. Early adoption is permitted.~~	The Company is currently evaluating its population of leases, and is continuing to assess all potential impacts of the standard, but currently believes the most significant impact relates to its accounting for manufacturing and logistics equipment, and real estate operating leases. The Company anticipates recognition of additional assets and corresponding liabilities related to leases upon adoption, but cannot quantify these at this time. The Company plans to adopt the standard effective January 1, 2019.

~~In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities.~~	~~The new guidance updates certain aspects of recognition, measurement, presentation and disclosure of financial instruments.~~	~~January 1, 2018. Early adoption is permitted.~~	~~The Company does not expect adoption will have a material impact on its financial statements and related~~ disclosures.

~~In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. Since that date, the FASB has issued additional ASUs clarifying certain aspects of ASU 2014-09.~~	The new guidance requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The new guidance provides alternative methods of adoption. Subsequent guidance issued after May 2014 did not change the core principle of ASU 2014-09.	~~January 1, 2018.~~	The Company plans to adopt the revenue guidance effective January 1, 2018, using the modified retrospective approach. The Company has substantially completed its assessment of the potential impact on its financial statements and currently does not expect the adoption to have a material impact on its financial statements and related disclosures. Further, it does not expect to change the manner or timing of recognizing revenue as a majority of its revenue transactions are recognized when product is delivered.

3. Acquisitions, Dispositions and Plant Closures

Acquisitions

~~Acetate Tow Joint Venture~~

On June 18, 2017, Celanese, through various subsidiaries, entered into an agreement with affiliates of The Blackstone Group L.P. (the "Blackstone Entities") to form a joint venture which combines substantially all of the operations of the Company's cellulose derivatives business and the operations of the Rhodia Acetow cellulose acetate business formerly operated by Solvay S.A. and acquired by the Blackstone Entities on June 1, 2017. The Company's cellulose derivatives operations are included in the Consumer Specialties segment. The combined business will operate under a common governance structure through two separate joint ventures, each of which will be owned ultimately 70% and 30% by Celanese and the Blackstone Entities, respectively. One venture will primarily be comprised of the US operations being contributed and the other will be comprised of the remaining international operations being contributed. Closing of the transaction is subject to customary closing conditions, including: (i) waiting periods, clearances and/or approvals of the European Union and other jurisdictions requiring antitrust or similar approvals, and (ii) completion of the internal reorganization of the Company's cellulose derivatives business to facilitate the closing and operation of the joint venture post-closing. The agreement may be terminated by Celanese and/or the Blackstone Entities under certain limited circumstances, including if the closing is not consummated within one year of signing, which date may be extended by an additional 90 days, under certain circumstances. Pursuant to the terms of the agreement, once approved and upon closing, the Company is expecting to consolidate the joint venture results, subject to the Blackstone Entities' noncontrolling interest.

In connection with the agreement, the joint venture obtained commitments for credit facilities aggregating $2.4 billion to be entered into by the joint venture entities at the closing consisting of (i) senior secured ($135 million) and senior unsecured ($65 million) revolving credit facilities in an aggregate principal amount of $200 million, (ii) senior secured term loan facilities in an aggregate principal amount of $1.0 billion, (iii) a senior unsecured bridge facility in an aggregate principal amount of $800 million, which bridge facility will backstop the proposed issuance of $800 million senior unsecured notes by a joint venture subsidiary, and (iv) a senior unsecured term loan facility in an aggregate principal amount of $400 million. The credit facilities will be guaranteed by certain of the subsidiaries of the respective borrowers; however, only the $65 million senior

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unsecured revolving credit facility and the $400 million senior unsecured term loan credit facility will be guaranteed by Celanese. Approximately $2.2 billion of the proceeds of the debt financing are expected to be used, in part, to repay certain of the parties' existing indebtedness and a $1.6 billion dividend to the Company.

~~Nilit Plastics~~

~~On May 3, 2017, using cash on hand and borrowings under the Company's senior unsecured revolving credit facility,~~November 2022, the Company acquired 100% ownership of entities and assets consisting of a majority of the ~~nylon~~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 ~~division of Nilit Group ("Nilit"),~~and polymerization, customer and supplier contracts and agreements, an ~~independent producer of high performance nylon resins, fibers~~intellectual property portfolio, including approximately 850 patents with associated technical and ~~compounds. Celanese acquired~~R&D assets, and approximately 5,000 employees across the ~~nylon compounding product portfolio, customer agreements and~~ manufacturing, ~~technology~~technical, and commercial ~~facilities. The~~organizations. This acquisition of ~~Nilit increases~~M&M enhances the ~~Company's global~~ engineered materials product ~~platforms, extends~~portfolio by adding new polymers, brands, product technology, and backward integration in critical polymers, allowing the ~~operational model, technical~~Company to accelerate growth in high-value applications including future mobility, connectivity and ~~industry solutions capabilities and expands project pipelines.~~medical. The acquisition was accounted for as a business combination and the acquired operations are included in the ~~Advanced~~ Engineered Materials segment.

~~Pro forma financial information since the respective acquisition date has not been provided as the acquisition did not have a material impact on the Company's financial information.~~ The Company allocated the purchase price of the acquisition to identifiable assets 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. The Company calculated the fair value of the assets acquired using the income, market, or cost approach (or a combination thereof). Fair values were determined based on Level 3 inputsincluding estimated future cash flows, discount rates, royalty rates, growth rates, sales projections, retention rates and terminal values, all of which require significant management judgment and are susceptible to change. The purchase price allocation is based upon preliminary information and is subject to change if additional information about the facts and circumstances that existed at the acquisition date becomes available. The final fair value of the net assets acquired may result in adjustments to the assets and liabilities, including goodwill. During the nine months ended September 30, 2017, the Company made certain adjustments to its purchase price allocation to adjust taxes and working capital, which resulted in a $4 million reduction to goodwill. Any subsequent measurement period adjustments are not expected to have a material impact on the Company's results of operations.

~~The preliminary purchase price allocation for the Nilit acquisition is as follows:~~



	~~As of~~ ~~May 3, 2017~~
	~~(In $ millions)~~
~~Cash and cash equivalents~~	4
~~Trade receivables - third party and affiliates~~	21
~~Inventories~~	37
~~Property, plant and equipment, net~~	36
~~Intangible assets (Note 7~~)	~~104~~
~~Goodwill~~⁽¹⁾(~~Note 7~~)	~~136~~
~~Other assets~~	11
~~Total fair value of assets acquired~~	~~349~~

~~Trade payables - third party and affiliates~~	(8	)
~~Total debt (Note 10~~)	~~(12~~	)
~~Deferred income taxes~~	~~(26~~	)
~~Benefit obligations~~	~~(15~~	)
~~Other liabilities~~⁽²⁾	~~(45~~	)
~~Total fair value of liabilities assumed~~	~~(106~~	)
~~Net assets acquired~~	~~243~~


⁽¹⁾	~~Goodwill consists of expected revenue and operating synergies resulting from the acquisition. None of the goodwill is deductible for income tax purposes.~~


⁽²⁾	~~Includes a $29 million acquisition payment to Nilit Group after the date of close, which was paid as of June 30, 2017.~~

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During the nine months ended September 30, 2017, transaction related costs of $2 million were expensed as incurred to Selling, general and administrative expenses in the unaudited interim consolidated statements of operations. The amount of pro forma Net earnings (loss) of Nilit included in the Company's unaudited interim consolidated statement of operations was less than 1% (unaudited) of its consolidated Net earnings (loss) had the acquisition occurred as of the beginning of 2017. The amount of Nilit Net earnings (loss) consolidated by the Company since the acquisition date was not material.

~~SO.F.TER. S.p.A.~~

In December 2016, the Company acquired 100% of the stock of the Forli, Italy based SO.F.TER. S.p.A. ("SOFTER"), a leading thermoplastic compounder. The acquisition of SOFTER increases the Company's global engineered materials product platforms, extends the operational model, technical and industry solutions capabilities and expands project pipelines. The acquisition was accounted for as a business combination and the acquired operations are included in the Advanced Engineered Materials segment. The Companypreliminarily 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 onupon preliminary information and is subject to change if additional information about the facts and circumstances that existed at the acquisition date becomes available. The Company is in the ongoing process of conducting a valuation of the assets acquired and liabilities assumed related to the acquisition, including trade names and customer relationships, personal and real property, investment in equity affiliates and deferred taxes. The final fair value of the net assets acquired may result in adjustments to ~~the~~these assets and liabilities, including goodwill. During the ~~nine~~measurement period to date, 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 2022. 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 $171 million and $343 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 2022 for the three and six months ended ~~September~~June 30, ~~2017,~~2022, respectively and (iv) net total inventory step up of inventory amortized to Cost of sales of $33 million and $131 million for the three and six months ended June 30, 2022, respectively.

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 acquisitions occurred on the assumed dates, nor are they necessarily an indication of future operating results.


	Three Months Ended June 30, 2022	Six Months Ended June 30, 2022
	(In $ millions)
Unaudited Consolidated Pro Forma Results
Proforma Net sales	3,397	6,824
Proforma Earnings (loss) from continuing operations before tax	285	597

Nutrinova Joint Venture

On June 22, 2023, the Company ~~made certain adjustments to its purchase price allocation to adjust property, plant and equipment, inventory and accounts receivable, which resulted in~~announced the signing of a ~~$2 million reduction to goodwill. Any subsequent measurement period adjustments are not expected to have a material impact on the Company's results of operations.~~

~~4. Ventures and Variable Interest Entities~~

~~Consolidated Variable Interest Entities~~

~~The Company has a joint venture, Fairway Methanol LLC ("Fairway"),~~definitive agreement with Mitsui & Co., Ltd., ("Mitsui") to form a food ingredients joint venture under the name Nutrinova. The Company will contribute receivables, inventory, property, plant and equipment, certain intangible assets, other assets, other liabilities, technology and employees 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. The methanol unit utilizes natural gasits food ingredients business while retaining a 30% stake in the ~~US Gulf Coast region as~~joint venture. Mitsui will acquire the remaining 70% stake at a ~~feedstock and benefits from~~purchase price of

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$473 million. The parties expect to close the ~~existing infrastructure at~~transaction in the ~~Company's Clear Lake facility. Both Mitsui and the Company supply their own natural gas to Fairway in exchange for methanol tolling under a cost-plus off-take arrangement.~~

second half of 2023, pending regulatory approvals. The Company ~~determined that Fairway is a variable interest entity ("VIE")~~will account for its remaining investment in ~~which~~ the Company is the primary beneficiary. Under the terms of the joint venture agreements, the Company provides site services and day-to-day operations for the methanol facility. In addition, the joint venture agreements provide that the Company indemnifies Mitsui for environmental obligations that exceed a specified threshold, as wellfood ingredients business as an equity ~~option between~~method investment.

As of June 30, 2023, the ~~partners. Accordingly, the Company consolidates the venture and records a noncontrolling interest for the share of the venture owned by Mitsui. Fairway is~~food ingredients business, currently included in the ~~Company's Acetyl Intermediates segment.~~

~~Table~~Engineered Materials segment, was classified as held for sale and measured and reported at the lower of ~~Contents~~

~~The~~its carrying amount ~~of the~~or fair value less costs to sell. The assets and liabilities ~~associated with Fairway included~~classified as held for sale in the unaudited consolidated balance ~~sheets~~sheet are as follows:

As of
September 30,
2017 As of
December 31,
2016
(In $ millions)
Cash and cash equivalents 23
18
Trade receivables, net - third party & affiliate 10
8
Property, plant and equipment (net of accumulated depreciation - 2017: $80; 2016: $50) 706
734
Intangible assets (net of accumulated amortization - 2017: $2; 2016: $1) 25
26
Other assets 6
9
Total assets⁽¹⁾
770
795

Trade payables 14
15
Other liabilities⁽²⁾
4
2
Total debt 5
5
Deferred income taxes 3
2
Total liabilities 26
24


			As of June 30, 2023
			(In $ millions)
Current assets			83
Goodwill			80
Other long-term assets			48
Assets held for sale			211

⁽¹⁾ Other liabilities			~~Assets can only be used to settle the obligations of Fairway.~~

19
⁽²⁾ Liabilities held for sale			~~Primarily represents amounts owed by Fairway to the Company for reimbursement of expenditures.~~19

~~Nonconsolidated Variable Interest Entities~~

~~The~~Korea Engineering Plastics Co. Restructuring

In April 2022, the Company ~~holds variable interests~~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 ~~entities that supply certain raw materials~~1987 to manufacture and ~~services~~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 pay 5 equal annual installments of €24 million on October 1 of each year beginning in 2022. This resulted in an increase to the ~~Company. The variable interests primarily relate to cost-plus contractual arrangements with the suppliers and recovery~~Company's investment in KEPCO of capital expenditures for certain plant assets plus a rate of return on such assets. Liabilities for such supplier recoveries of capital expenditures have been recorded as capital lease obligations. The entities are not consolidated because the Company is not the primary beneficiary of the entities as it does not have the power to direct the activities of the entities that most significantly impact the entities' economic performance.$134 million. The Company's ~~maximum exposure~~joint venture partner will make similar payments to ~~loss~~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 ~~a result of its involvement with these VIEs as of~~ ~~September 30, 2017, relates primarily to the recovery of capital expenditures for certain property, plant and equipment.~~an equity method investment.

The carrying amount of the assets and liabilities associated with the obligations to nonconsolidated VIEs, as well as the maximum exposure to loss relating to these nonconsolidated VIEs are as follows:

4. Inventories


	As of June 30, 2023	As of December 31, 2022
	(In $ millions)
Finished goods	1,632	1,820
Work-in-process	202	202
Raw materials and supplies	680	786
Total	2,514	2,808

As of
September 30,
2017 As of
December 31,
2016
(In $ millions)
Property, plant and equipment, net 55
60

Trade payables 37
53
Current installments of long-term debt 19
10
Long-term debt 78
91
Total liabilities 134
154

Maximum exposure to loss 180
240

The difference between the total liabilities associated with obligations to nonconsolidated VIEs and the maximum exposure to loss primarily represents take-or-pay obligations for services included in the Company's unconditional purchase obligations (~~Note 18~~).

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5. ~~Marketable Securities, at Fair Value~~

~~The Company's nonqualified trusts hold available-for-sale securities for funding requirements of the Company's nonqualified pension plans (Note 11) as follows:~~

As of
September 30,
2017 As of
December 31,
2016
(In $ millions)
Amortized cost 31
30
Gross unrealized gain —
—
Gross unrealized loss —
—
Fair value 31
30

~~6. Inventories~~

As of
September 30,
2017 As of
December 31,
2016
(In $ millions)
Finished goods 539
506
Work-in-process 45
45
Raw materials and supplies 225
169
Total 809
720

7. Goodwill and Intangible Assets, Net

Goodwill


							Engineered Materials	Acetyl Chain	Total
	Advanced Engineered Materials	Consumer Specialties	Industrial Specialties	Acetyl Intermediates	Total		(In $ millions)
	(In $ millions)
As of December 31, 2016	385	225	38	148	796
As of December 31, 2022						As of December 31, 2022	6,775	367	7,142
Acquisitions (Note 3)	130	—	—	—	130	Acquisitions (Note 3)	8	—	8
Transfer(1)						Transfer(1)	(80)	—	(80)
Exchange rate changes	37	10	2	20	69	Exchange rate changes	(11)	4	(7)
As of September 30, 2017⁽¹⁾	552	235	40	168	995
As of June 30, 2023(2)						As of June 30, 2023(2)	6,692	371	7,063

(1)Related to goodwill reclassified to assets held for sale (Note 3).


⁽¹⁾	~~There were $0 million of~~ (2)There were no accumulated impairment losses as of~~September 30, 2017~~.

~~The Company assesses the recoverability of the carrying amount of its reporting unit goodwill 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. 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, 2017 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.

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2023.

Intangible Assets, Net

Finite-lived intangible assets are as follows:

Licenses
Customer-
Related
Intangible
Assets

Developed
Technology

Covenants
Not to
Compete
and Other
Total
(In $ millions)
Gross Asset Value
As of December 31, 2016 36
509
35
53
633

Acquisitions (Note 3)
—
73
9
—
82
⁽¹⁾
Exchange rate changes 1
51
1
—
53

As of September 30, 2017 37
633
45
53
768

Accumulated Amortization
As of December 31, 2016 (27 ) (440 ) (26 ) (31 ) (524 )
Amortization (3 ) (8 ) (2 ) (1 ) (14 )
Exchange rate changes (1 ) (39 ) (1 ) —
(41 )
As of September 30, 2017 (31 ) (487 ) (29 ) (32 ) (579 )
Net book value 6
146
16
21
189


	Licenses	Customer- Related Intangible Assets	Developed Technology	Covenants Not to Compete and Other	Total
	(In $ millions)
Gross Asset Value
As of December 31, 2022	42	2,455	601	55	3,153


Transfer(1)	—	(58)	(1)	—	(59)
Exchange rate changes	(2)	9	(6)	—	1
As of June 30, 2023	40	2,406	594	55	3,095
Accumulated Amortization
As of December 31, 2022	(39)	(567)	(50)	(40)	(696)
Amortization	—	(63)	(20)	—	(83)
Transfer(1)	—	58	1	—	59
Exchange rate changes	2	(7)	(1)	—	(6)
As of June 30, 2023	(37)	(579)	(70)	(40)	(726)
Net book value	3	1,827	524	15	2,369

(1)Related to finite-lived intangible assets reclassified to assets held for sale (Note 3).


⁽¹⁾	~~Represents intangible assets acquired related to Nilit (Note 3) with a weighted average amortization period of 14 years.~~

Indefinite-lived intangible assets are as follows:


		Trademarks and Trade Names
		(In $ millions)
As of December 31, 2022		1,648

Transfer(1)		~~Trademarks~~ ~~and Trade Names~~ (14)
		~~(In $ millions)~~
~~As of December 31, 2016~~	85
~~Acquisitions (Note 3~~)	22
~~Accumulated impairment losses~~	—
Exchange rate changes	74
As of ~~September~~June 30, ~~2017~~2023		~~114~~1,638

______________________________

The Company assesses the recoverability of the carrying amount of its indefinite-lived intangible assets either qualitatively or by utilizing the relief from royalty method under the income approach 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 assets may not be fully recoverable. In connection with the Company's annual indefinite-lived intangible assets impairment assessment, the Company did not record an impairment loss(1)Related to indefinite-lived intangible assets ~~during~~reclassified to assets held for sale (Note 3).

During the ~~nine~~six months ended ~~September~~June 30, ~~2017 as the estimated fair value of each of the Company's indefinite-lived intangible assets exceeded the carrying value of the underlying assets by a substantial margin.~~

~~The Company's trademarks and trade names have an indefinite life. For the~~ ~~nine months endedSeptember 30, 2017~~,2023, the Company did not renew or extend any intangible assets.

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Estimated amortization expense for the succeeding five fiscal years is as follows:


			(In $ millions)
2024			160
2025			160
2026			160
2027			160
2028			160

6. Current Other Liabilities

(In $ millions)
2018 19
2019 17
2020 15
2021 15
2022 14


	As of June 30, 2023	As of December 31, 2022
	(In $ millions)

Benefit obligations (Note 8)	25	25
Customer rebates	88	101
Derivatives (Note 12)	64	63


Interest (Note 7)	290	265
Legal (Note 14)	25	21
Operating leases	89	83
Restructuring (Note 18)	21	6
Salaries and benefits	132	151
Sales and use tax/foreign withholding tax payable	99	108
Investment in affiliates	87	79
Other(1)	226	299
Total	1,146	1,201

____________________________

(1)Includes $115 million and $166 million payable to DuPont related to the M&M Acquisition and transition activities as of June 30, 2023 and December 31, 2022, respectively.

7. Debt


	As of June 30, 2023	As of December 31, 2022
	(In $ millions)
Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates
Current installments of long-term debt	1,050	506
Short-term borrowings, including amounts due to affiliates(1)	250	500


Revolving credit facilities(2)	207	300

Total	1,507	1,306

(1)The weighted average interest rate was 4.9% and 5.8% as of June 30, 2023 and December 31, 2022, respectively.

(2)The weighted average interest rate was 3.4% and 5.8% as of June 30, 2023 and December 31, 2022, respectively.

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~~8. Current Other Liabilities~~

As of
September 30,
2017 As of
December 31,
2016
(In $ millions)
Asset retirement obligations 17
9
Benefit obligations (Note 11)
31
31
Customer rebates 59
51
Derivatives (Note 16)
9
3
Environmental (Note 12)
17
14
Insurance 4
6
Interest 18
15
Restructuring (Note 14)
6
16
Salaries and benefits 91
97
Sales and use tax/foreign withholding tax payable 23
21
Other 68
59
Total 343
322

~~9. Noncurrent Other Liabilities~~

As of
September 30,
2017 As of
December 31,
2016
(In $ millions)
Asset retirement obligations 10
20
Deferred proceeds 46
41
Deferred revenue 7
9
Environmental (Note 12)
54
50
Income taxes payable 6
6
Insurance 52
46
Other 55
43
Total 230
215

~~10. Debt~~

As of
September 30,
2017 As of
December 31,
2016
(In $ millions)
Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates
Current installments of long-term debt 59
27
Short-term borrowings, including amounts due to affiliates⁽¹⁾
75
68
Short-term SOFTER bank loans (Note 3)⁽²⁾
—
23
Revolving credit facility⁽³⁾
220
—
Accounts receivable securitization facility⁽⁴⁾
81
—
Total 435
118


	As of June 30, 2023	As of December 31, 2022
	(In $ millions)
Long-Term Debt




Senior unsecured notes due 2023, interest rate of 1.125%	489	480
Senior unsecured notes due 2024, interest rate of 3.500%	500	499
Senior unsecured notes due 2024, interest rate of 5.900%	2,000	2,000
Senior unsecured notes due 2025, interest rate of 1.250%	326	320
Senior unsecured notes due 2025, interest rate of 6.050%	1,750	1,750
Senior unsecured term loan due 2025, interest rate of 6.760%	750	750
Senior unsecured notes due 2026, interest rate of 1.400%	400	400
Senior unsecured notes due 2026, interest rate of 4.777%	1,087	1,067
Senior unsecured notes due 2027, interest rate of 2.125%	541	531
Senior unsecured notes due 2027, interest rate of 6.165%	2,000	2,000
Senior unsecured term loan due 2027, interest rate of 6.760%	1,000	1,000
Senior unsecured notes due 2028, interest rate of 0.625%	543	533
Senior unsecured notes due 2029, interest rate of 5.337%	543	533
Senior unsecured notes due 2029, interest rate of 6.330%	750	750
Senior unsecured notes due 2032, interest rate of 6.379%	1,000	1,000
Pollution control and industrial revenue bonds due at various dates through 2030, interest rates ranging from 4.05% to 5.00%	163	164

Bank loans due at various dates through 2026(1)	4	4
Obligations under finance leases due at various dates through 2054	157	172
Subtotal	14,003	13,953
Unamortized debt issuance costs(2)	(64)	(74)
Current installments of long-term debt	(1,050)	(506)
Total	12,889	13,373


⁽¹⁾	~~The weighted average interest rate was 3.0% and 3.1% as of September 30, 2017 and December 31, 2016, respectively.~~


⁽²⁾	~~The weighted average interest rate was 1.2% as of December 31, 2016.~~


⁽³⁾	~~The weighted average interest rate was 2.7% as of September 30, 2017.~~


⁽⁴⁾	~~The weighted average interest rate was 2.0% as of September 30, 2017.~~

(1)The weighted average interest rate was 1.3% and 1.3% as of June 30, 2023 and December 31, 2022, respectively.

16(2)Related to the Company's long-term debt, excluding obligations under finance leases.

~~Table of Contents~~

As of
September 30,
2017 As of
December 31,
2016
(In $ millions)
Long-Term Debt
Senior unsecured term loan due 2021⁽¹⁾
500
500
Senior unsecured notes due 2019, interest rate of 3.250% 354
316
Senior unsecured notes due 2021, interest rate of 5.875% 400
400
Senior unsecured notes due 2022, interest rate of 4.625% 500
500
Senior unsecured notes due 2023, interest rate of 1.125% 884
788
Pollution control and industrial revenue bonds due at various dates through 2030, interest rates ranging from 4.05% to 5.00% 169
170
SOFTER bank loans due at various dates through 2021 (Note 3)⁽²⁾
—
47
Nilit bank loans due at various dates through 2026 (Note 3)⁽³⁾
12
—
Obligations under capital leases due at various dates through 2054 212
217
Subtotal 3,031
2,938
Unamortized debt issuance costs⁽⁴⁾
(18 ) (21 )
Current installments of long-term debt (59 ) (27 )
Total 2,954
2,890


⁽¹⁾	~~The margin for borrowings under the senior unsecured term loan due 2021 was 1.5% above LIBOR at current Company credit ratings.~~


⁽²⁾	~~The weighted average interest rate was~~ ~~1.6%~~ ~~as of December 31, 2016.~~


⁽³⁾	~~The weighted average interest rate was 1.4% as of September 30, 2017.~~


⁽⁴⁾	~~Related to the Company's long-term debt, excluding obligations under capital leases.~~

Senior Credit Facilities

In ~~July 2016,~~March 2022, Celanese, Celanese USU.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 and a tranche of delayed-draw term loans due 5 years from issuance in an amount equal to $1.0 billion. 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 have provided delayed-draw term loans due 3 years from issuance in an amount equal to $750 million (the term loans represented by the U.S. Term Loan Credit Agreements collectively, the "U.S. Term Loan Facility"). The U.S. Term Loan Facility was fully drawn during the three months ended December 31, 2022.

Also in March 2022, Celanese, Celanese U.S. and certain subsidiaries entered into a new ~~senior~~revolving credit agreement ("(the "U.S. Revolving Credit Agreement" and, together with the U.S. Term Loan Credit Agreements, the "U.S. Credit Agreements") consisting of a ~~$500 million senior unsecured term loan and a $1.0~~$1.75 billion senior unsecured revolving credit facility (with a letter of credit sublimit), ~~each~~ maturing in ~~2021.~~2027 (the "U.S. Revolving Credit Facility").

On February 21, 2023, the Company amended certain covenants in the U.S. Credit Agreements, including financial ratio maintenance covenants. The U.S. Credit Agreements are 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 Quarterly Report.

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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 ~~Celanese US~~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 ~~substantially all~~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 is 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 ~~domestic subsidiaries (the "Subsidiary Guarantors").~~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 ~~facility~~facilities are as follows:


		As of June 30, 2023
		(In $ millions)
U.S. Revolving Credit Facility
Borrowings outstanding		—

		~~As of~~ ~~September 30,~~ ~~2017~~
	~~(In $ millions)~~
~~Revolving Credit Facility~~
~~Borrowings outstanding~~⁽¹⁾	~~220~~
~~Letters of credit issued~~	—
Available for borrowing⁽²⁾	~~780~~1,750


⁽¹⁾ China Revolving Credit Facility			~~The Company borrowed $451 million and repaid $231 million under its senior unsecured revolving credit facility during the nine months ended September 30, 2017.~~


⁽²⁾ Borrowings outstanding			~~The margin~~207
Available for ~~borrowings under the senior unsecured revolving credit facility was 1.5% above LIBOR at current Company credit ratings.~~borrowing			34

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Senior Notes

The Company has outstanding senior unsecured notes, issued in public offerings registered under the Securities Act of 1933 ("Securities Act"), as amended (collectively, the "Senior Notes"). The Senior Notes were issued by Celanese USU.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 an offering of $7.5 billion aggregate principal amount of notes of various maturities in a public offering registered under the Securities Act (the "Acquisition USD Notes"). In July 2022, Celanese U.S. completed an offering of €1.5 billion in aggregate principal amount of euro-denominated senior unsecured notes due in 2026 and 2029 in a public offering registered under the Securities Act (collectively, the "Acquisition Euro Notes" and together with the Acquisition USD Notes, the "Acquisition Notes"). Certain of the Acquisition Notes were issued at a discount to par, which will be amortized to Interest expense in the consolidated statements of operations over the terms of the applicable Acquisition Notes. Fees and expenses of the offering of the Acquisition Notes, inclusive of underwriting discounts, were $65 million.

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Accounts Receivable ~~Securitization~~Purchasing Facility

~~The~~On June 1, 2023, the Company ~~has a US~~entered into an amendment to the amended and restated receivables purchase agreement (the "Amended Receivables Purchase Agreement") under its U.S. accounts receivable ~~securitization~~purchasing facility ~~involving receivables of~~among certain of ~~its domestic~~the Company's subsidiaries, ~~of the Company transferred to a~~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 ~~("SPE").~~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 unaudited consolidated balance sheet. The ~~securitization facility, which permits cash borrowings~~Company de-recognized $663 million and ~~letters~~$1.1 billion of ~~credit, expires~~accounts receivable under this agreement for the six months ended June 30, 2023 and year ended December 31, 2022, respectively, and collected $565 million and $1.1 billion of accounts receivable sold under this agreement during the same periods. Unsold U.S. accounts receivable of $86 million were pledged by the SPE as collateral to the Purchasers as of June 30, 2023.

Factoring and Discounting Agreements

The Company has factoring agreements in ~~July 2019.~~

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's debt balances~~Company has no continuing involvement in the transferred receivables, other than collection and ~~amounts~~administrative responsibilities and, once sold, the accounts receivable are no longer available to satisfy creditors in the event of bankruptcy. The Company de-recognized $196 million and $320 million of accounts receivable under these factoring agreements for ~~borrowing~~the six months ended June 30, 2023 and year ended December 31, 2022, respectively, and collected $189 million and $325 million of accounts receivable sold under ~~its securitization facility are as follows:~~



	~~As of~~ ~~September 30,~~ ~~2017~~
	~~(In $ millions)~~
~~Accounts Receivable Securitization Facility~~
~~Borrowings outstanding~~⁽¹⁾these factoring agreements during the same periods.	81
~~Letters of credit issued~~	31
~~Available for borrowing~~	7
~~Total borrowing base~~	~~119~~

~~Maximum borrowing base~~⁽²⁾	~~120~~


⁽¹⁾	~~The Company borrowed $85 million and repaid $4 million under its Accounts Receivable Securitization Facility during the nine months ended September 30, 2017.~~


⁽²⁾	~~Outstanding accounts receivable transferred to the SPE was $153 million.~~

Covenants

The Company's material financing arrangements contain customary covenants, ~~including the maintenance of certain financial ratios,~~such as events of default and change of control ~~provisions.~~provisions, and in the case of the U.S. Credit Agreements the maintenance of certain financial ratios (subject to adjustment following certain qualifying acquisitions and dispositions, as set forth in the 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 ~~all~~the covenants ~~related to~~in its ~~debt agreements~~material financing arrangements as of ~~September~~June 30, ~~2017~~.2023.

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~~11.~~8. Benefit Obligations

The components of net periodic benefit cost are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	Pension Benefits	Post-retirement Benefits	Pension Benefits	Post-retirement Benefits	Pension Benefits	Post-retirement Benefits	Pension Benefits	Post-retirement Benefits
	(In $ millions)
Service cost	2	—	4	—	6	—	7	—
Interest cost	34	1	16	1	66	1	33	1
Expected return on plan assets	(33)	—	(42)	—	(66)	—	(83)	—




Total	3	1	(22)	1	6	1	(43)	1

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Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
Pension
Benefits Post-retirement
Benefits Pension
Benefits Post-retirement
Benefits Pension
Benefits Post-retirement
Benefits Pension
Benefits Post-retirement
Benefits
(In $ millions)
Service cost 2
1
2
—
6
1
6
—
Interest cost 27
—
28
1
80
1
84
2
Expected return on plan assets (50 ) —
(44 ) —
(148 ) —
(132 ) —
Amortization of prior service cost (credit), net —
—
—
(1 ) —
(1 ) —
(3 )
Special termination benefit —
—
—
—
1
—
3
—
Total (21 ) 1
(14 ) —
(61 ) 1
(39 ) (1 )

Benefit obligation funding is as follows:


	As of September 30, 2017	Total Expected 2017		As of June 30, 2023	Total Expected 2023
	(In $ millions)			(In $ millions)
Cash contributions to defined benefit pension plans	17	20	Cash contributions to defined benefit pension plans	13	27
Benefit payments to nonqualified pension plans	16	22	Benefit payments to nonqualified pension plans	9	18
Benefit payments to other postretirement benefit plans	3	4	Benefit payments to other postretirement benefit plans	2	4
Cash contributions to German multiemployer defined benefit pension plans⁽¹⁾	5	7


⁽¹⁾	~~The Company makes contributions based on specified percentages of employee contributions.~~

The Company's estimates of its USU.S. defined benefit pension plan contributions reflect the provisions of the Pension Protection Act of 2006.

Pension and postretirement benefit plan balances recognized in the unaudited consolidated balance sheets consist of the following:

~~12.~~


	As of June 30, 2023		As of December 31, 2022
	Pension Benefits	Post-retirement Benefits	Pension Benefits	Post-retirement Benefits
	(In $ millions)
Noncurrent Other assets	164	—	160	—
Current Other liabilities	(21)	(3)	(21)	(3)
Benefit obligations	(366)	(35)	(372)	(35)
Net amount recognized	(223)	(38)	(233)	(38)

9. 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.

~~Table of Contents~~

The components of environmental remediation ~~reserves~~liabilities are as follows:


	As of June 30, 2023	As of December 31, 2022
	(In $ millions)
Demerger obligations (Note 14)	18	20
Divestiture obligations (Note 14)	13	14
Active sites	20	21
U.S. Superfund sites	8	10
Other environmental remediation liabilities	2	2
Total	61	67

As of
September 30,
2017 As of
December 31,
2016
(In $ millions)
Demerger obligations (Note 18)
30
18
Divestiture obligations (Note 18)
15
16
Active sites 14
16
US Superfund sites 10
11
Other environmental remediation reserves 2
3
Total 71
64

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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 USU.S. Superfund sites ~~(as defined~~(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 1814). 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.

USU.S. Superfund Sites

In the ~~US,~~U.S., the Company may be subject to substantial claims brought by USU.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 USU.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 USU.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 ~~as appropriate, a liability for site cleanup. Such liabilities include all costs that are~~any probable and ~~can be~~ reasonably ~~estimated.~~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 ~~Lower Passaic River Site~~LPRSA and the Newark Bay Area. ~~Work on the RI/FS is ongoing, with a goal to complete it in 2018.~~

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

~~Table of Contents~~

~~primary~~ 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.

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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.

The Company iswill continue to vigorously ~~defending this matter~~defend these matters and ~~currently believes~~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 our 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 ~~to the Company's~~impact on our financial condition or results of ~~operations, cash flows or financial position.~~operations.

~~13. Stockholders'~~10. 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 ~~Series A common stock,~~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 July 19, 2023, amounting to $76 million. The cash dividend will be paid on August 14, 2023 to holders of record as of July 31, 2023.

Treasury Stock

The Company's Board of Directors ~~approved increases in the Company's~~authorizes repurchases of Common Stock ~~cash dividend rates as follows:~~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.

Table of Contents

Increase
Quarterly Common
Stock Cash Dividend

Annual Common
Stock Cash Dividend
Effective Date
(In percentages) (In $ per share)
April 2016 20 0.36 1.44 May 2016
April 2017 28 0.46 1.84 May 2017

~~Treasury Stock~~

Nine Months Ended
September 30, Total From
February 2008
Through
September 30, 2017
2017 2016
Shares repurchased 5,436,803
4,360,617
39,779,019
Average purchase price per share $ 91.97
$ 68.80
$ 58.71
Shares repurchased (in $ millions) $ 500
$ 300
$ 2,335
Aggregate Board of Directors repurchase authorizations during the period (in $ millions)⁽¹⁾
$ 1,500
$ —
$ 3,866


⁽¹⁾	~~These authorizations give management discretion in determining the timing and conditions under which shares may be repurchased. This repurchase program began in~~	Total From February 2008 ~~and does not have an expiration date.~~ Through June 30, 2023

Shares repurchased			69,324,429
Average purchase price per share			$	83.71
Shares repurchased (in $ millions)			$	5,803
Aggregate Board of Directors repurchase authorizations during the period (in $ millions)			$	6,866

~~On July 17, 2017, the Company's Board of Directors approved a $1.5 billion increase in its Common Stock repurchase authorization.~~

The purchase of treasury stock reduces the number of shares outstanding. The repurchased shares may be used by the Company for compensation programs utilizing the Company's stock and other corporate purposes. The Company accounts for treasury stock using the cost method and includes treasury stock as a component of ~~stockholders'~~shareholders' equity.

The Company did not repurchase any Common Stock during the six months ended June 30, 2023 or 2022.

Other Comprehensive Income (Loss), Net


	Three Months Ended June 30,
	2023			2022
	Gross Amount	Income Tax (Provision) Benefit	Net Amount	Gross Amount	Income Tax (Provision) Benefit	Net Amount
	(In $ millions)

Foreign currency translation gain (loss)	(214)	13	(201)	(107)	(24)	(131)
Gain (loss) on cash flow hedges	(1)	1	—	33	(7)	26
Pension and postretirement benefits gain (loss)	—	1	1	—	—	—
Total	(215)	15	(200)	(74)	(31)	(105)

Three Months Ended September 30,
2017 2016

Gross
Amount

Income
Tax
(Provision)
Benefit

Net
Amount

Gross
Amount

Income
Tax
(Provision)
Benefit
Net
Amount
(In $ millions)
Unrealized gain (loss) on marketable securities —
—
—
(1 ) —
(1 )
Foreign currency translation 44
(2 ) 42
(2 ) (6 ) (8 )
Gain (loss) on cash flow hedges —
—
—
—
—
—
Pension and postretirement benefits (1 ) —
(1 ) —
—
—
Total 43
(2 ) 41
(3 ) (6 ) (9 )


	Six Months Ended June 30,
	2023			2022
	Gross Amount	Income Tax (Provision) Benefit	Net Amount	Gross Amount	Income Tax (Provision) Benefit	Net Amount
	(In $ millions)

Foreign currency translation gain (loss)	(218)	30	(188)	(122)	(30)	(152)
Gain (loss) on cash flow hedges	3	1	4	52	(11)	41
Pension and postretirement benefits gain (loss)	(1)	1	—	2	—	2
Total	(216)	32	(184)	(68)	(41)	(109)

~~Table of Contents~~

Nine Months Ended September 30,
2017 2016
Gross
Amount Income
Tax
(Provision)
Benefit Net
Amount Gross
Amount Income
Tax
(Provision)
Benefit Net
Amount
(In $ millions)
Unrealized gain (loss) on marketable securities 1
—
1
—
—
—
Foreign currency translation 143
5
148
51
(13 ) 38
Gain (loss) on cash flow hedges (1 ) —
(1 ) 1
—
1
Pension and postretirement benefits 4
—
4
(1 ) —
(1 )
Total 147
5
152
51
(13 ) 38

Adjustments to Accumulated other comprehensive income (loss), net, are as follows:


	Foreign Currency Translation Gain (Loss)	Gain (Loss) on Cash Flow Hedges (Note 12)	Pension and Postretirement Benefits Gain (Loss) (Note 8)	Accumulated Other Comprehensive Income (Loss), Net
	(In $ millions)
As of December 31, 2022	(488)	(22)	(8)	(518)
Other comprehensive income (loss) before reclassifications	(218)	(2)	(1)	(221)
Amounts reclassified from accumulated other comprehensive income (loss)	—	5	—	5
Income tax (provision) benefit	30	1	1	32
As of June 30, 2023	(676)	(18)	(8)	(702)

Unrealized
Gain (Loss)
on
Marketable
Securities
(Note 5)

Foreign
Currency
Translation

Gain (Loss)
on Cash
Flow
Hedges
(Note 16)

Pension
and
Postretirement
Benefits
(Note 11)

Accumulated
Other
Comprehensive
Income
(Loss), Net
(In $ millions)
As of December 31, 2016 1
(350 ) 3
(12 ) (358 )
Other comprehensive income (loss) before reclassifications 1
143
1
5
150
Amounts reclassified from accumulated other comprehensive income (loss) —
—
(2 )
(1 )
(3 )
Income tax (provision) benefit —
5
—
—
5
As of September 30, 2017 2
(202 ) 2
(8 ) (206 )

~~14. Other (Charges) Gains, Net~~

Three Months Ended September 30, Nine Months Ended
September 30,
2017 2016 2017 2016
(In $ millions)
Employee termination benefits —
(3 ) (4 )
⁽¹⁾
(11 )
InfraServ ownership change —
—
(4 ) —
Asset impairments —
—
—
(1 )
Other plant/office closures —
—
(50 ) —
Total —
(3 ) (58 ) (12 )


⁽¹⁾	~~Includes $1 million of special termination benefits included in Benefit obligations in the unaudited consolidated balance sheets.~~

During the nine months ended September 30, 2017 and 2016, the Company recorded $4 million and $11 million, respectively, of employee termination benefits primarily related to the Company's ongoing efforts to align its businesses around its core value drivers.

A partner in the Company's InfraServ equity affiliate investments exercised an option right, which is currently being disputed, to purchase additional ownership interests in the InfraServ entities from the Company. The purchase of these interests will reduce the Company's ownership interests in InfraServ GmbH & Co. Gendorf KG and InfraServ GmbH & Co. Knapsack KG from 39% and 27%, to 30% and 22%, respectively. Accordingly, during the nine months ended September 30, 2017, the Company reduced the carrying value of these investments by $4 million. In addition, the Company has reserved certain amounts for dividends received from the investments since the exercise notification was received. The Company's InfraServ investments are primarily owned by entities included in the Other Activities segment.

Table of Contents

During the nine months ended September 30, 2017, the Company provided notice of termination of a contract with a key raw materials supplier at its ethanol production unit in Nanjing, China. As a result, the Company recorded an estimated $50 million of plant/office closure costs primarily consisting of a $24 million contract termination charge and an $18 million reduction to its non-income tax receivable. The Nanjing, China ethanol production unit is included in the Company's Acetyl Intermediates segment.

~~The changes in the restructuring reserves by business segment are as follows:~~

Advanced
Engineered
Materials

Consumer
Specialties

Industrial
Specialties

Acetyl
Intermediates
Other Total
(In $ millions)
Employee Termination Benefits
As of December 31, 2016 1
9
2
1
3
16
Additions 1
2
—
—
1
4
Cash payments (1 ) (2 ) (1 ) —
(3 ) (7 )
Other changes —
(8 ) —
—
(1 ) (9 )
Exchange rate changes —
—
—
—
—
—
As of September 30, 2017 1
1
1
1
—
4
Other Plant/Office Closures
As of December 31, 2016 —
—
—
—
—
—
Additions —
—
—
29
—
29
Cash payments —
—
—
(24 ) —
(24 )
Other changes —
—
—
(3 ) —
(3 )
Exchange rate changes —
—
—
—
—
—
As of September 30, 2017 —
—
—
2
—
2
Total 1
1
1
3
—
6

~~15.~~11. Income Taxes

Three Months Ended
September 30, Nine Months Ended
September 30,
2017 2016 2017 2016
(In percentages)
Effective income tax rate 20 5 19 15


	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
	(In percentages)
Effective income tax rate	(2)	20	6	19

The ~~higher~~ effective income tax rate for the three ~~and nine~~ months ended ~~September~~June 30, ~~2017~~2023 was lower compared to the same period in ~~2016 is~~2022, primarily due to decreased earnings in high taxed jurisdictions related to current demand conditions and a ~~release of $52 million~~decrease in valuation allowances on U.S. foreign tax ~~positions during 2016~~credit carryforwards due to ~~audit settlements in~~revised forecasts of foreign sourced income and expenses during the ~~US and Germany and current year foreign exchange differences in certain jurisdictions where~~carryforward period. The effective income tax rate for the ~~functional currency differs from the local currency.~~

~~For the nine~~six months ended ~~September~~June 30, ~~2017,~~2023 was lower compared to the ~~Company's uncertain tax positions increased $24 million,~~same period in 2022, primarily due to decreased earnings in high taxed jurisdictions related to current demand conditions.

In December 2017, the ~~Nilit acquisition (Note 3~~Tax Cuts and Jobs Act (the "TCJA") was enacted and ~~foreign exchange fluctuations.~~was effective January 1, 2018. The U.S. Treasury has issued various final and proposed regulatory packages supplementing the TCJA provisions since 2018. There have been no material proposed or final regulatory packages during the three months ended June 30, 2023.

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 ~~Company's US~~corporate minimum tax ~~returns for~~paid is creditable in future years to the ~~years 2009 through 2012 are currently under audit by~~extent that regular tax liability exceeds the ~~US Internal Revenue Service~~minimum tax in any given year. The Company does not expect these provisions and ~~certain of the Company's subsidiaries are under audit in jurisdictions outside of the US. In connection with the Company's US federal~~any newly issued administrative guidance to have a material impact to future income tax ~~audit~~expense. The IRA also provides various beneficial credits for ~~2009~~energy efficient related manufacturing, transportation and ~~2010, the Company has received $192 million of proposed pre-tax adjustments related to various intercompany charges. In the event~~fuels, hydrogen/carbon recapture and renewable energy, which the Company is ~~wholly unsuccessful~~evaluating in ~~its defense, an actual~~regards 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 ~~assessment would result~~expense or benefit in the ~~consumption~~period the guidance is finalized or becomes effective.

Due to the TCJA and uncertainty as to future foreign source income, the Company previously recorded a valuation allowance on a substantial portion of ~~up to $67 million of prior~~its foreign tax credit carryforwards. The Company ~~believes these proposed~~is currently evaluating tax planning strategies to enable the use of the Company's foreign tax credit carryforwards that may decrease the Company's effective tax rate in future periods as the valuation allowance is reversed.

The Company's tax returns have been under joint 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 discussions with the other authorities regarding the ongoing examinations and will evaluate all additional potential remedies as the discussions progress.

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 2018. In January 2022, the Mexico tax authorities issued preliminary findings for disallowance of operating expenses on several of the applicable tax returns. The Company has analyzed the preliminary findings, engaged in preliminary discussions with the Mexico tax authorities and has recorded the appropriate tax reserves as of June 30, 2023. The Company will continue discussions with the Mexico authorities in 2023. Related to Canada, the Company is in ongoing discussions regarding the audit findings with the Canadian authorities and does not expect a material impact to income tax expense.

As of June 30, 2023, the Company believes that an adequate provision for income taxes has been made for all open tax years related to the examinations by government authorities. However, the outcome of tax audits cannot be ~~without merit and~~predicted with certainty. If any issues raised in the audits described above are resolved in a manner inconsistent with the Company's expectations or the Company is ~~vigorously~~unsuccessful in defending its ~~position.~~

positions, 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.

Table of Contents

~~16.~~12. Derivative Financial Instruments

Derivatives Designated As Hedges

Net Investment Hedges

The Company uses derivative instruments, such as foreign currency forwards, and non-derivative financial instruments, such as foreign currency denominated debt, 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 derivative and non-derivative financial instruments is included in foreign currency translation within Accumulated other comprehensive income (loss), net in the unaudited consolidated balance sheets. Gains and losses are reclassified to earnings in the period the hedged investment is sold or liquidated.

The total notional amount of foreign currency denominated debt and cross-currency swaps designated as a net investment ~~hedge of net investments in foreign operations~~hedges are as follows:

As of
September 30,
2017 As of
December 31,
2016
(In € millions)
Total 750
850


	As of June 30, 2023	As of December 31, 2022
	(In € millions)
Total	5,591	5,639

Concurrently with the offering of the Acquisition USD Notes in July 2022 (Note 7), 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.

Derivatives Not Designated As Hedges

Foreign Currency Forwards and Swaps

Gross notional values of the foreign currency forwards and swaps not designated as hedges are as follows:


	As of June 30, 2023	As of December 31, 2022
	(In $ millions)
Total	1,715	1,314

Table of Contents

As of
September 30,
2017 As of
December 31,
2016
(In $ millions)
Total 797
508

Information regarding changes in the fair value of the Company's derivative and non-derivative instruments is as follows:


	Gain (Loss) Recognized in Other Comprehensive Income (Loss)			Gain (Loss) Recognized in Earnings (Loss)						Gain (Loss) Recognized in Other Comprehensive Income (Loss)		Gain (Loss) Recognized in Earnings (Loss)
	Three Months Ended September 30,							Statement of Operations Classification		Three Months Ended June 30,				Statement of Operations Classification
	2017		2016	2017		2016				2023	2022	2023	2022
	(In $ millions)									(In $ millions)
Designated as Cash Flow Hedges									Designated as Cash Flow Hedges
Commodity swaps	—		—	1		—		Cost of sales	Commodity swaps	(7)	42	—	11	Cost of sales
Interest rate swaps									Interest rate swaps	—	—	(2)	(2)	Interest expense

Foreign currency forwards	—		—	(1	)	—		Cost of sales	Foreign currency forwards	2	—	(1)	—	Cost of sales
Total	—		—	—		—			Total	(5)	42	(3)	9

Designated as Net Investment Hedges									Designated as Net Investment Hedges
Foreign currency denominated debt (Note 10)	(30	)	1	—		—		N/A
Foreign currency denominated debt (Note 7)									Foreign currency denominated debt (Note 7)	(5)	93	—	—	N/A
Cross-currency swaps									Cross-currency swaps	(74)	25	—	—	N/A

Total	(30	)	1	—		—			Total	(79)	118	—	—

Not Designated as Hedges									Not Designated as Hedges

Foreign currency forwards and swaps	—		—	—		(1	)	Foreign exchange gain (loss), net; Other income (expense), net	Foreign currency forwards and swaps	—	—	(1)	(3)	Foreign exchange gain (loss), net; Other income (expense), net
Total	—		—	—		(1	)		Total	—	—	(1)	(3)


	Gain (Loss) Recognized in Other Comprehensive Income (Loss)		Gain (Loss) Recognized in Earnings (Loss)
	Six Months Ended June 30,				Statement of Operations Classification
	2023	2022	2023	2022
	(In $ millions)
Designated as Cash Flow Hedges
Commodity swaps	(7)	59	1	11	Cost of sales
Interest rate swaps	—	—	(4)	(4)	Interest expense

Foreign currency forwards	4	—	(2)	—	Cost of sales
Total	(3)	59	(5)	7

Designated as Net Investment Hedges
Foreign currency denominated debt (Note 7)	(61)	121	—	—	N/A
Cross-currency swaps	(93)	27	—	—	N/A



Total	(154)	148	—	—

Not Designated as Hedges

Foreign currency forwards and swaps	—	—	1	(4)	Foreign exchange gain (loss), net; Other income (expense), net
Total	—	—	1	(4)

~~Table of Contents~~

Gain (Loss) Recognized in Other Comprehensive Income (Loss) Gain (Loss) Recognized in Earnings (Loss)
Nine Months Ended September 30, Statement of Operations Classification
2017 2016 2017 2016
(In $ millions)
Designated as Cash Flow Hedges
Commodity swaps 1
1
3
—
Cost of sales
Foreign currency forwards (1 ) —
(1 ) —
Cost of sales
Total —
1
2
—

Designated as Net Investment Hedges
Foreign currency denominated debt (Note 10)
(99 ) 2
—
—
N/A
Total (99 ) 2
—
—

Not Designated as Hedges
Foreign currency forwards and swaps —
—
(2 ) 12
Foreign exchange gain (loss), net; Other income (expense), net
Total —
—
(2 ) 12

See Note ~~17 - Fair Value Measurements~~13 for ~~further~~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.

Table of Contents

Information regarding the gross amounts of the Company's derivative instruments and the amounts offset in the unaudited consolidated balance sheets is as follows:

As of
September 30,
2017 As of
December 31,
2016
(In $ millions)
Derivative Assets
Gross amount recognized 8
14
Gross amount offset in the consolidated balance sheets 2
4
Net amount presented in the consolidated balance sheets 6
10
Gross amount not offset in the consolidated balance sheets 2
2
Net amount 4
8


				As of June 30, 2023	As of December 31, 2022
	As of September 30, 2017	As of December 31, 2016		(In $ millions)
	(In $ millions)
Derivative Liabilities
Derivative Assets			Derivative Assets
Gross amount recognized	11	7	Gross amount recognized	156	169
Gross amount offset in the consolidated balance sheets	2	4	Gross amount offset in the consolidated balance sheets	—	—
Net amount presented in the consolidated balance sheets	9	3	Net amount presented in the consolidated balance sheets	156	169
Gross amount not offset in the consolidated balance sheets	2	2	Gross amount not offset in the consolidated balance sheets	17	16
Net amount	7	1	Net amount	139	153


	As of June 30, 2023	As of December 31, 2022
	(In $ millions)
Derivative Liabilities
Gross amount recognized	279	189
Gross amount offset in the consolidated balance sheets	—	—
Net amount presented in the consolidated balance sheets	279	189
Gross amount not offset in the consolidated balance sheets	17	16
Net amount	262	173

~~Table of Contents~~

~~17.~~13. Fair Value Measurements

The Company's financial assets and liabilities are measured at fair value on a recurring basis as follows:

~~Derivatives.~~Derivative financial instruments ~~including~~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 ~~spot~~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

Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)

Significant
Other
Observable
Inputs
(Level 2)
Total Balance Sheet Classification
(In $ millions)
As of September 30, 2017
Derivatives Designated as Cash Flow Hedges
Commodity swaps —
2
2
Current Other assets
Commodity swaps —
1
1
Noncurrent Other assets
Derivatives Not Designated as Hedges

Foreign currency forwards and swaps —
3
3
Current Other assets
Total assets —
6
6

Derivatives Designated as Cash Flow Hedges
Foreign currency forwards —
(9 ) (9 ) Current Other liabilities
Derivatives Not Designated as Hedges
Foreign currency forwards and swaps —
—
—
Current Other liabilities
Total liabilities —
(9 ) (9 )
As of December 31, 2016
Derivatives Designated as Cash Flow Hedges
Commodity swaps —
5
5
Current Other assets
Derivatives Not Designated as Hedges
Foreign currency forwards and swaps —
5
5
Current Other assets
Total assets —
10
10

Derivatives Not Designated as Hedges
Foreign currency forwards and swaps —
(3 ) (3 ) Current Other liabilities
Total liabilities —
(3 ) (3 )

Table of Contents

Fair Value Measurement

Significant Other Observable Inputs
(Level 2)

Balance Sheet Classification

(In $ millions)

As of June 30, 2023

Derivatives Designated as Cash Flow Hedges

Commodity swaps

Current Other assets

Commodity swaps

Noncurrent Other assets

Foreign currency forwards and swaps

Current Other assets

Derivatives Designated as Net Investment Hedges

Cross-currency swaps

101

Current Other assets

Derivatives Not Designated as Hedges

Foreign currency forwards and swaps

Current Other assets

Total assets

156

Derivatives Designated as Net Investment Hedges

Cross-currency swaps

(60)

Current Other liabilities

Cross-currency swaps

(207)

Noncurrent Other liabilities

Derivatives Not Designated as Hedges

Foreign currency forwards and swaps

(4)

Current Other liabilities

Foreign currency forwards and swaps

(8)

Noncurrent Other liabilities

Total liabilities

(279)

Fair Value Measurement

Significant Other Observable Inputs
(Level 2)

Balance Sheet Classification

(In $ millions)

As of December 31, 2022

Derivatives Designated as Cash Flow Hedges

Commodity swaps

Current Other assets

Commodity swaps

Noncurrent Other assets

Derivatives Designated as Net Investment Hedges

Cross-currency swaps

Current Other assets

Cross-currency swaps

Noncurrent Other assets

Derivatives Not Designated as Hedges

Foreign currency forwards and swaps

Current Other assets

Total assets

169

Derivatives Designated as Cash Flow Hedges

Commodity swaps

(2)

Current Other liabilities

Derivatives Designated as Net Investment Hedges

Cross-currency swaps

(58)

Current Other liabilities

Cross-currency swaps

(126)

Noncurrent Other liabilities

Derivatives Not Designated as Hedges

Foreign currency forwards and swaps

(3)

Current Other liabilities

Total liabilities

(189)

Table of Contents

Carrying values and fair values of financial instruments that are not carried at fair value are as follows:


							Fair Value Measurement
		Fair Value Measurement				Carrying Amount	Significant Other Observable Inputs (Level 2)	Unobservable Inputs (Level 3)	Total
	Carrying Amount	Significant Other Observable Inputs (Level 2)	Unobservable Inputs (Level 3)	Total		(In $ millions)
	(In $ millions)
As of September 30, 2017
Cost investments	159	—	—	—
As of June 30, 2023					As of June 30, 2023
Equity investments without readily determinable fair values					Equity investments without readily determinable fair values	170	—	—	—
Insurance contracts in nonqualified trusts	46	46	—	46	Insurance contracts in nonqualified trusts	21	21	—	21
Long-term debt, including current installments of long-term debt	3,031	2,934	212	3,146	Long-term debt, including current installments of long-term debt	14,003	13,650	157	13,807
As of December 31, 2016
Cost investments	155	—	—	—
As of December 31, 2022					As of December 31, 2022
Equity investments without readily determinable fair values					Equity investments without readily determinable fair values	170	—	—	—
Insurance contracts in nonqualified trusts	49	49	—	49	Insurance contracts in nonqualified trusts	22	23	—	23
Long-term debt, including current installments of long-term debt	2,938	2,826	217	3,043	Long-term debt, including current installments of long-term debt	13,953	13,247	172	13,419

In general, the ~~cost~~equity investments included in the table above are not publicly traded and their fair values are not readily ~~determinable; however, the~~determinable. The Company believes the carrying values approximate ~~or are less than the~~ fair ~~values.~~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 ~~capital~~finance leases, which are included in long-term debt, is based on lease payments and discount rates, which are not observable in the market and therefore represents a Level 3 fair value measurement.

As of ~~September~~June 30, ~~2017~~,2023, and December 31, ~~2016~~,2022, the fair values of cash and cash equivalents, receivables, marketable securities, 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.

~~18.~~14. Commitments and Contingencies

Commitments

Guarantees

The Company has agreed to guarantee or indemnify third parties for environmental and other liabilities pursuant to a variety of agreements, including asset and business divestiture agreements, leases, settlement agreements and various agreements with affiliated companies. Although many of these obligations contain monetary and/or time limitations, others do not provide such limitations.

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 129).

The Company's obligation to indemnify Hoechst, and its legal successors, is capped under Category B at ~~€250 million~~.€250 million. If and to the extent the environmental damage should exceed ~~€750~~€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

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payments under the divestiture agreements as of ~~September~~June 30, ~~2017~~,2023 are ~~$78~~$110 million. ~~Most~~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.

~~Table of Contents~~

The Company has also undertaken in the demerger agreement to indemnify Hoechst and its legal successors for (i) 33.33% of any and all Category A liabilities that result from Hoechst being held as the responsible party pursuant to public law or current or future environmental law or by third parties pursuant to private or public law related to contamination and (ii) liabilities that Hoechst is required to discharge, including tax liabilities, which are associated with businesses that were included in the demerger but were not demerged due to legal restrictions on the transfers of such items. These indemnities do not provide for any monetary or time limitations. The Company has not been requested by Hoechst to make any payments in connection with this indemnification. Accordingly, the Company has not made any payments to Hoechst and its legal successors.

Based on the Company's evaluation of currently available information, including the lack of requests for indemnification, the Company cannot estimate the ~~Possible Loss for the~~ remaining demerger obligations, if any, in excess of amounts accrued.

•Divestiture Obligations

The Company and its predecessor companies agreed to indemnify third-party purchasers of former businesses and assets for various pre-closing conditions, as well as for breaches of representations, warranties and covenants. Such liabilities also include environmental liability, product liability, antitrust and other liabilities. These indemnifications and guarantees represent standard contractual terms associated with typical divestiture agreements and, other than environmental liabilities, the Company does not believe that they expose the Company to ~~any~~ significant risk (Note 129).

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 ~~$125~~$116 million as of ~~September~~June 30, ~~2017.~~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 Possible Loss for~~ the remaining divestiture obligations, if any, in excess of amounts accrued.

Purchase Obligations

In the normal course of business, the Company enters into various purchase commitments for goods and services. The Company maintains a number of "take-or-pay" contracts for purchases of raw materials, utilities and other services. Certain of the contracts contain a contract termination buy-out provision that allows for the Company to exit the contracts for amounts less than the remaining take-or-pay obligations. Additionally, the Company has other outstanding commitments representing maintenance and service agreements, energy and utility agreements, consulting contracts and software agreements. As of ~~September~~June 30, ~~2017,~~2023, the Company had unconditional purchase obligations of ~~$1.7~~$4.1 billion, of which ~~extend~~$355 million will be paid in 2023, $665 million in 2024, $558 million in 2025, $436 million in 2026, $355 million in 2027 and the balance thereafter through ~~2036.~~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, ~~commercial~~insurance coverage disputes, contracts, employment, antitrust or competition, ~~compliance,~~ 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 ~~stockholders,~~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.

~~European Commission~~

In May 2017, the Company learned that the European Commission has opened a competition law investigation involving certain subsidiaries of the Company with respect to certain raw material purchases. The Company is cooperating with the European Commission. Because of the early stage of the investigation and the many uncertainties and variables involved, the Company is unable at this time to determine the outcome of this investigation and whether, and in what amount, any potential fines would be assessed.

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~~19.~~15. Segment Information


	Advanced Engineered Materials	Consumer Specialties		Industrial Specialties		Acetyl Intermediates			Other Activities		Eliminations		Consolidated				Engineered Materials	Acetyl Chain	Other Activities	Eliminations		Consolidated
	(In $ millions)																(In $ millions)
	Three Months Ended September 30, 2017																Three Months Ended June 30, 2023
Net sales	543	187		264	⁽¹⁾	684		⁽¹⁾	—		(112	)	1,566			Net sales	1,585	1,233	—	(23)	(1)	2,795
Other (charges) gains, net (Note 14)	—	—		—		—			—		—		—
Other (charges) gains, net (Note 18)																Other (charges) gains, net (Note 18)	(8)	—	(2)	—		(10)
Operating profit (loss)	97	53		20		128			(46	)	—		252			Operating profit (loss)	158	295	(118)	—		335
Equity in net earnings (loss) of affiliates	45	2		—		1			2		—		50			Equity in net earnings (loss) of affiliates	18	2	3	—		23
Depreciation and amortization	29	11		10		26			4		—		80			Depreciation and amortization	112	54	6	—		172
Capital expenditures	18	10		6		36			4		—		74		⁽²⁾	Capital expenditures	58	67	27	—		152	(2)
	Three Months Ended September 30, 2016																Three Months Ended June 30, 2022
Net sales	365	225		245	⁽¹⁾	589		⁽¹⁾	—		(101	)	1,323			Net sales	948	1,559	—	(21)	(1)	2,486
Other (charges) gains, net (Note 14)	—	(1	)	—		(1	)		(1	)	—		(3	)
Other (charges) gains, net (Note 18)																Other (charges) gains, net (Note 18)	1	—	—	—		1
Operating profit (loss)	93	68		25		83			(23	)	—		246			Operating profit (loss)	166	428	(111)	—		483
Equity in net earnings (loss) of affiliates	33	1		—		1			6		—		41			Equity in net earnings (loss) of affiliates	53	3	4	—		60
Depreciation and amortization	22	12		9		27			2		—		72			Depreciation and amortization	45	52	6	—		103
Capital expenditures	14	11		15		17			3		—		60		⁽²⁾	Capital expenditures	35	87	10	—		132	(2)

(1)Includes intersegment sales primarily related to the Acetyl Chain.


⁽¹⁾	Net sales for Acetyl Intermediates and Industrial Specialties include intersegment sales of $111 million and $1 million, respectively, for the three months ended September 30, 2017 and $100 million and $1 million, respectively, for the three months ended ~~September 30, 2016~~.


⁽²⁾	~~Includes an increase in accrued capital expenditures of $10 million and $2 million for the three months ended~~ ~~September 30, 2017~~ ~~and~~ ~~2016, respectively.~~

(2)Includes an increase in accrued capital expenditures of $7 million and $8 million for the three months ended June 30, 2023 and 2022, respectively.


	Engineered Materials	Acetyl Chain	Other Activities	Eliminations		Consolidated
	(In $ millions)
	Six Months Ended June 30, 2023
Net sales	3,215	2,483	—	(50)	(1)	5,648
Other (charges) gains, net (Note 18)	(29)	(1)	(3)	—		(33)
Operating profit (loss)	270	573	(257)	—		586
Equity in net earnings (loss) of affiliates	29	3	6	—		38
Depreciation and amortization	224	108	12	—		344
Capital expenditures	103	118	39	—		260	(2)
	As of June 30, 2023
Goodwill and intangible assets, net	10,646	424	—	—		11,070
Total assets	18,146	5,589	1,914	—		25,649
	Six Months Ended June 30, 2022
Net sales	1,858	3,211	—	(45)	(1)	5,024

Operating profit (loss)	290	931	(207)	—		1,014
Equity in net earnings (loss) of affiliates	102	7	7	—		116
Depreciation and amortization	91	108	10	—		209
Capital expenditures	65	157	24	—		246	(2)
	As of December 31, 2022
Goodwill and intangible assets, net	10,826	421	—	—		11,247
Total assets	20,611	5,471	190	—		26,272

(1)Includes intersegment sales primarily related to the Acetyl Chain.

(2)Includes a decrease in accrued capital expenditures of $49 million and $15 million for the six months ended June 30, 2023 and 2022, respectively.

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Advanced
Engineered
Materials

Consumer
Specialties

Industrial
Specialties

Acetyl
Intermediates

Other
Activities
Eliminations Consolidated
(In $ millions)
Nine Months Ended September 30, 2017
Net sales 1,546
598
771
⁽¹⁾
1,952
⁽¹⁾
—
(320 ) 4,547

Other (charges) gains, net (Note 14)
(2 ) (2 ) —
(50 ) (4 ) —
(58 )
Operating profit (loss) 292
170
71
264
(113 ) —
684

Equity in net earnings (loss) of affiliates 125
3

—
4
3
—
135

Depreciation and amortization 79
33
28
78
8
—
226

Capital expenditures 41
24

16
84

8
—
173
⁽²⁾
As of September 30, 2017
Goodwill and intangible assets, net 796
255
47
200
—
—
1,298

Total assets 3,597
1,318
829
2,707
611
—
9,062

Nine Months Ended September 30, 2016
Net sales 1,080
704

760
⁽¹⁾
1,844
⁽¹⁾
—
(310 ) 4,078

Other (charges) gains, net (Note 14)
(2 ) (1 ) (3 ) (2 ) (4 ) —
(12 )
Operating profit (loss) 263
226
85
274
(73 ) 1
776

Equity in net earnings (loss) of affiliates 91
2
—
4
17
—
114

Depreciation and amortization 71
34
25
81
7
—
218

Capital expenditures 52
29

45
40

8
—
174
⁽²⁾
As of December 31, 2016
Goodwill and intangible assets, net 517
244
46
183
—
—
990

Total assets 2,792
1,324
758
2,440
1,043
—
8,357


⁽¹⁾	Net sales for Acetyl Intermediates and Industrial Specialties include intersegment sales of $317 million and $3 million, respectively, for the nine months ended September 30, 2017 and $308 million and $2 million, respectively, for the nine months ended September 30, 2016.


⁽²⁾	~~Includes a decrease in accrued capital expenditures of $7 million and $12 million for the nine months ended September 30, 2017 and 2016, respectively.~~

~~20. Earnings (Loss) Per Share~~

Three Months Ended
September 30, Nine Months Ended
September 30,
2017 2016 2017 2016
(In $ millions, except share data)
Amounts attributable to Celanese Corporation
Earnings (loss) from continuing operations 230
265
652
742
Earnings (loss) from discontinued operations (4 ) (3 ) (12 ) (2 )
Net earnings (loss) 226
262
640
740

Weighted average shares - basic 136,579,077
144,005,098
138,599,330
145,959,821
Incremental shares attributable to equity awards 372,846
596,367

388,991
625,739
Weighted average shares - diluted 136,951,923
144,601,465
138,988,321
146,585,560

~~During the three and nine months ended September 30, 2017 and 2016, there were no anti-dilutive equity awards excluded from the computation of diluted net earnings per share.~~

~~Table of Contents~~

~~21. Consolidating Guarantor Financial Information~~

~~The Senior Notes were issued by Celanese US ("Issuer") and are guaranteed by Celanese Corporation ("Parent Guarantor") and the Subsidiary Guarantors (Note 10~~). The Issuer and Subsidiary Guarantors are 100% owned subsidiaries of the Parent Guarantor. The Parent Guarantor and Subsidiary Guarantors have guaranteed the Notes fully and unconditionally and jointly and severally.

For cash management purposes, the Company transfers cash between the Parent Guarantor, Issuer, Subsidiary Guarantors and non-guarantors through intercompany financing arrangements, contributions or declaration of dividends between the respective parent and its subsidiaries. The transfer of cash under these activities facilitates the ability of the recipient to make specified third-party payments for principal and interest on the Company's outstanding debt, Common Stock dividends and Common Stock repurchases. The unaudited interim consolidating statements of cash flows for the nine months ended September 30, 2017 and 2016 present such intercompany financing activities, contributions and dividends consistent with how such activity would be presented in a stand-alone statement of cash flows.16. Revenue Recognition

The Company has ~~not presented separate financial information and other disclosures for each~~certain contracts that represent take-or-pay revenue arrangements in which the Company's performance obligations extend over multiple years. As of June 30, 2023, the Company had $1.3 billion of remaining performance obligations related to take-or-pay contracts. The Company expects to recognize approximately $272 million of its ~~Subsidiary Guarantors because it believes such financial information~~remaining performance obligations as Net sales in 2023, $481 million in 2024, $324 million in 2025 and ~~other disclosures would not provide investors with any additional information that would be material~~the balance thereafter.

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 ~~evaluating~~Current and Noncurrent Other liabilities in the ~~sufficiency of the guarantees.~~unaudited consolidated balance sheets.

The ~~unaudited interim consolidating financial statements~~Company does not have any material contract assets as of June 30, 2023.

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 which 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 ~~Parent Guarantor,~~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 ~~Issuer,~~Acetyl Chain are based on market demand, trade flows and maximizing the ~~Subsidiary Guarantors~~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:


	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
	(In $ millions)
Engineered Materials
North America	471	284	950	573
Europe and Africa	519	380	1,079	757
Asia-Pacific	554	256	1,102	477
South America	41	28	84	51
Total	1,585	948	3,215	1,858








Acetyl Chain
North America	361	451	726	876
Europe and Africa	437	545	897	1,137
Asia-Pacific	379	510	746	1,071
South America	33	32	64	82
Total(1)	1,210	1,538	2,433	3,166

(1)Excludes intersegment sales of $23 million and $21 million for the ~~non-guarantors~~three months ended June 30, 2023 and 2022, respectively. Excludes intersegment sales of $50 million and $45 million for the six months ended June 30, 2023 and 2022, respectively.

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17. Earnings (Loss) Per Share


	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
	(In $ millions, except share data)
Amounts attributable to Celanese Corporation
Earnings (loss) from continuing operations	219	440	313	942
Earnings (loss) from discontinued operations	1	(6)	(2)	(6)
Net earnings (loss)	220	434	311	936

Weighted average shares - basic	108,886,678	108,392,155	108,761,071	108,289,603
Incremental shares attributable to equity awards(1)	419,653	731,194	520,293	868,452
Weighted average shares - diluted	109,306,331	109,123,349	109,281,364	109,158,055

(1)Excludes options to purchase 242,421 and 0 shares of Common Stock for the three months ended June 30, 2023 and 2022, respectively, and 164,739 and 0 shares of Common Stock for the six months ended June 30, 2023 and 2022, respectively, as their effect would have been antidilutive. Excludes 102,773 and 107,287 equity award shares for the three months ended June 30, 2023 and 2022, respectively, and 46,008 and 82,887 equity award shares for the six months ended June 30, 2023 and 2022, respectively, as their effect would have been antidilutive.

18. Other (Charges) Gains, Net


	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
	(In $ millions)
Restructuring(1)	(10)	1	(33)	—








Total	(10)	1	(33)	—

(1)Includes employee termination benefits primarily related to Company-wide business optimization projects during the three and six months ended June 30, 2023.

The changes in the restructuring liabilities by business segment are as follows:


	Engineered Materials	Acetyl Chain	Other	Total
	(In $ millions)
Employee Termination Benefits
As of December 31, 2022	4	1	1	6
Additions	29	1	3	33
Cash payments	(14)	(1)	(3)	(18)


As of June 30, 2023	19	1	1	21

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~~CELANESE CORPORATION AND SUBSIDIARIES~~

~~UNAUDITED INTERIM CONSOLIDATING STATEMENT OF OPERATIONS~~

Three Months Ended September 30, 2017

Parent
Guarantor
Issuer
Subsidiary
Guarantors

Non-
Guarantors
Eliminations Consolidated
(In $ millions)
Net sales —
—
527
1,314
(275 ) 1,566
Cost of sales —
—
(405 ) (1,042 ) 266
(1,181 )
Gross profit —
—
122
272
(9 ) 385
Selling, general and administrative expenses —
—
(36 ) (76 ) —
(112 )
Amortization of intangible assets —
—
(1 ) (4 ) —
(5 )
Research and development expenses —
—
(9 ) (10 ) —
(19 )
Other (charges) gains, net —
—
—
—
—
—
Foreign exchange gain (loss), net —
—
—
4
—
4
Gain (loss) on disposition of businesses and assets, net —
—
(2 ) 1
—
(1 )
Operating profit (loss) —
—
74
187
(9 ) 252
Equity in net earnings (loss) of affiliates 226
233
175
45
(629 ) 50
Interest expense —
(5 ) (28 ) (8 ) 9
(32 )
Refinancing expense —
—
—
—
—
—
Interest income —
7
1
2
(9 ) 1
Dividend income - cost investments —
—
—
26
(2 ) 24
Other income (expense), net —
(2 ) —
(4 ) —
(6 )
Earnings (loss) from continuing operations before tax 226
233
222
248
(640 ) 289
Income tax (provision) benefit —
(7 ) (68 ) 17
1
(57 )
Earnings (loss) from continuing operations 226
226
154
265
(639 ) 232
Earnings (loss) from operation of discontinued operations —
—
—
(5 ) —
(5 )
Income tax (provision) benefit from discontinued operations —
—
—
1
—
1
Earnings (loss) from discontinued operations —
—
—
(4 ) —
(4 )
Net earnings (loss) 226
226
154
261
(639 ) 228
Net (earnings) loss attributable to noncontrolling interests —
—
—
(2 ) —
(2 )
Net earnings (loss) attributable to Celanese Corporation 226
226
154
259
(639 ) 226

~~Table of Contents~~

~~CELANESE CORPORATION AND SUBSIDIARIES~~

~~UNAUDITED INTERIM CONSOLIDATING STATEMENT OF OPERATIONS~~

Three Months Ended September 30, 2016

Parent
Guarantor
Issuer
Subsidiary
Guarantors

Non-
Guarantors
Eliminations Consolidated
(In $ millions)
Net sales —
—
544
1,052
(273 ) 1,323
Cost of sales —
—
(414 ) (824 ) 270
(968 )
Gross profit —
—
130
228
(3 ) 355
Selling, general and administrative expenses —
—
(19 ) (62 ) —
(81 )
Amortization of intangible assets —
—
(1 ) (2 ) —
(3 )
Research and development expenses —
—
(8 ) (12 ) —
(20 )
Other (charges) gains, net —
—
—
(3 ) —
(3 )
Foreign exchange gain (loss), net —
—
—
(1 ) —
(1 )
Gain (loss) on disposition of businesses and assets, net —
—
(3 ) 2
—
(1 )
Operating profit (loss) —
—
99
150
(3 ) 246
Equity in net earnings (loss) of affiliates 262
250
169
36
(676 ) 41
Interest expense —
(5 ) (20 ) (7 ) 4
(28 )
Refinancing expense —
(4 ) —
—
—
(4 )
Interest income —
3
—
1
(4 ) —
Dividend income - cost investments —
—
—
26
—
26
Other income (expense), net —
—
1
(1 ) —
—
Earnings (loss) from continuing operations before tax 262
244
249
205
(679 ) 281
Income tax (provision) benefit —
18
(23 ) (11 ) 1
(15 )
Earnings (loss) from continuing operations 262
262
226
194
(678 ) 266
Earnings (loss) from operation of discontinued operations —
—
(2 ) (2 ) —
(4 )
Income tax (provision) benefit from discontinued operations —
—
—
1
—
1
Earnings (loss) from discontinued operations —
—
(2 ) (1 ) —
(3 )
Net earnings (loss) 262
262
224
193
(678 ) 263
Net (earnings) loss attributable to noncontrolling interests —
—
—
(1 ) —
(1 )
Net earnings (loss) attributable to Celanese Corporation 262
262
224
192
(678 ) 262

~~Table of Contents~~

~~CELANESE CORPORATION AND SUBSIDIARIES~~

~~UNAUDITED INTERIM CONSOLIDATING STATEMENT OF OPERATIONS~~

Nine Months Ended September 30, 2017

Parent
Guarantor
Issuer
Subsidiary
Guarantors

Non-
Guarantors
Eliminations Consolidated
(In $ millions)
Net sales —
—
1,679
3,713
(845 ) 4,547
Cost of sales —
—
(1,305 ) (2,974 ) 836
(3,443 )
Gross profit —
—
374
739
(9 ) 1,104
Selling, general and administrative expenses —
—
(78 ) (213 ) —
(291 )
Amortization of intangible assets —
—
(3 ) (11 ) —
(14 )
Research and development expenses —
—
(23 ) (30 ) —
(53 )
Other (charges) gains, net —
—
(7 ) (51 ) —
(58 )
Foreign exchange gain (loss), net —
—
—
—
—
—
Gain (loss) on disposition of businesses and assets, net —
—
(6 ) 2
—
(4 )
Operating profit (loss) —
—
257
436
(9 ) 684
Equity in net earnings (loss) of affiliates 640
640
439
122
(1,706 ) 135
Interest expense —
(17 ) (75 ) (23 ) 24
(91 )
Refinancing expense —
—
—
—
—
—
Interest income —
19
3
4
(24 ) 2
Dividend income - cost investments —
—
—
85
(3 ) 82
Other income (expense), net —
(3 ) 1
—
—
(2 )
Earnings (loss) from continuing operations before tax 640
639
625
624
(1,718 ) 810
Income tax (provision) benefit —
1
(139 ) (16 ) 1
(153 )
Earnings (loss) from continuing operations 640
640
486
608
(1,717 ) 657
Earnings (loss) from operation of discontinued operations —
—
—
(14 ) —
(14 )
Income tax (provision) benefit from discontinued operations —
—
—
2
—
2
Earnings (loss) from discontinued operations —
—
—
(12 ) —
(12 )
Net earnings (loss) 640
640
486
596
(1,717 ) 645
Net (earnings) loss attributable to noncontrolling interests —
—
—
(5 ) —
(5 )
Net earnings (loss) attributable to Celanese Corporation 640
640
486
591
(1,717 ) 640

~~Table of Contents~~

~~CELANESE CORPORATION AND SUBSIDIARIES~~

~~UNAUDITED INTERIM CONSOLIDATING STATEMENT OF OPERATIONS~~

Nine Months Ended September 30, 2016

Parent
Guarantor
Issuer
Subsidiary
Guarantors

Non-
Guarantors
Eliminations Consolidated
(In $ millions)
Net sales —
—
1,663
3,264
(849 ) 4,078
Cost of sales —
—
(1,270 ) (2,580 ) 855
(2,995 )
Gross profit —
—
393
684
6
1,083
Selling, general and administrative expenses —
—
(41 ) (191 ) —
(232 )
Amortization of intangible assets —
—
(3 ) (4 ) —
(7 )
Research and development expenses —
—
(24 ) (34 ) —
(58 )
Other (charges) gains, net —
—
(1 ) (11 ) —
(12 )
Foreign exchange gain (loss), net —
—
—
1
—
1
Gain (loss) on disposition of businesses and assets, net —
—
(6 ) 7
—
1
Operating profit (loss) —
—
318
452
6
776
Equity in net earnings (loss) of affiliates 740
742
472
107
(1,947 ) 114
Interest expense —
(11 ) (71 ) (21 ) 12
(91 )
Refinancing expense —
(4 ) (2 ) —
—
(6 )
Interest income —
7
2
4
(12 ) 1
Dividend income - cost investments —
—
—
82
—
82
Other income (expense), net —
(1 ) 1
(2 ) —
(2 )
Earnings (loss) from continuing operations before tax 740
733
720
622
(1,941 ) 874
Income tax (provision) benefit —
7
(63 ) (70 ) (1 ) (127 )
Earnings (loss) from continuing operations 740
740
657
552
(1,942 ) 747
Earnings (loss) from operation of discontinued operations —
—
(2 ) (1 ) —
(3 )
Income tax (provision) benefit from discontinued operations —
—
—
1
—
1
Earnings (loss) from discontinued operations —
—
(2 ) —
—
(2 )
Net earnings (loss) 740
740
655
552
(1,942 ) 745
Net (earnings) loss attributable to noncontrolling interests —
—
—
(5 ) —
(5 )
Net earnings (loss) attributable to Celanese Corporation 740
740
655
547
(1,942 ) 740

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~~CELANESE CORPORATION AND SUBSIDIARIES~~

~~UNAUDITED INTERIM CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)~~

Three Months Ended September 30, 2017

Parent
Guarantor
Issuer
Subsidiary
Guarantors

Non-
Guarantors
Eliminations Consolidated
(In $ millions)
Net earnings (loss) 226
226
154
261
(639 ) 228
Other comprehensive income (loss), net of tax
Unrealized gain (loss) on marketable securities —
—
—
—
—
—
Foreign currency translation 42
42
65
74
(181 ) 42
Gain (loss) on cash flow hedges —
—
—
—
—
—
Pension and postretirement benefits (1 ) (1 ) (1 ) —
2
(1 )
Total other comprehensive income (loss), net of tax 41
41
64
74
(179 ) 41
Total comprehensive income (loss), net of tax 267
267
218
335
(818 ) 269
Comprehensive (income) loss attributable to noncontrolling interests —
—
—
(2 ) —
(2 )
Comprehensive income (loss) attributable to Celanese Corporation 267
267
218
333
(818 ) 267

Three Months Ended September 30, 2016

Parent
Guarantor
Issuer
Subsidiary
Guarantors

Non-
Guarantors
Eliminations Consolidated
(In $ millions)
Net earnings (loss) 262
262
224
193
(678 ) 263
Other comprehensive income (loss), net of tax
Unrealized gain (loss) on marketable securities (1 ) (1 ) —
(1 ) 2
(1 )
Foreign currency translation (8 ) (8 ) (8 ) (4 ) 20
(8 )
Gain (loss) on cash flow hedges —
—
—
—
—
—
Pension and postretirement benefits —
—
—
—
—
—
Total other comprehensive income (loss), net of tax (9 ) (9 ) (8 ) (5 ) 22
(9 )
Total comprehensive income (loss), net of tax 253
253
216
188
(656 ) 254
Comprehensive (income) loss attributable to noncontrolling interests —
—
—
(1 ) —
(1 )
Comprehensive income (loss) attributable to Celanese Corporation 253
253
216
187
(656 ) 253

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~~CELANESE CORPORATION AND SUBSIDIARIES~~

~~UNAUDITED INTERIM CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)~~

Nine Months Ended September 30, 2017

Parent
Guarantor
Issuer
Subsidiary
Guarantors

Non-
Guarantors
Eliminations Consolidated
(In $ millions)
Net earnings (loss) 640
640
486
596
(1,717 ) 645
Other comprehensive income (loss), net of tax
Unrealized gain (loss) on marketable securities 1
1
1
1
(3 ) 1
Foreign currency translation 148
148
191
232
(571 ) 148
Gain (loss) on cash flow hedges (1 ) (1 ) (1 ) (1 ) 3
(1 )
Pension and postretirement benefits 4
4
3
6
(13 ) 4
Total other comprehensive income (loss), net of tax 152
152
194
238
(584 ) 152
Total comprehensive income (loss), net of tax 792
792
680
834
(2,301 ) 797
Comprehensive (income) loss attributable to noncontrolling interests —
—
—
(5 ) —
(5 )
Comprehensive income (loss) attributable to Celanese Corporation 792
792
680
829
(2,301 ) 792

Nine Months Ended September 30, 2016

Parent
Guarantor
Issuer
Subsidiary
Guarantors

Non-
Guarantors
Eliminations Consolidated
(In $ millions)
Net earnings (loss) 740
740
655
552
(1,942 ) 745
Other comprehensive income (loss), net of tax
Unrealized gain (loss) on marketable securities —
—
—
—
—
—
Foreign currency translation 38
38
28
54
(120 ) 38
Gain (loss) on cash flow hedges 1
1
1
1
(3 ) 1
Pension and postretirement benefits (1 ) (1 ) (1 ) 1
1
(1 )
Total other comprehensive income (loss), net of tax 38
38
28
56
(122 ) 38
Total comprehensive income (loss), net of tax 778
778
683
608
(2,064 ) 783
Comprehensive (income) loss attributable to noncontrolling interests —
—
—
(5 ) —
(5 )
Comprehensive income (loss) attributable to Celanese Corporation 778
778
683
603
(2,064 ) 778

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~~CELANESE CORPORATION AND SUBSIDIARIES~~

~~UNAUDITED CONSOLIDATING BALANCE SHEET~~

As of September 30, 2017

Parent
Guarantor
Issuer
Subsidiary
Guarantors

Non-
Guarantors
Eliminations Consolidated
(In $ millions)
ASSETS
Current Assets
Cash and cash equivalents —
5
70
386
—
461
Trade receivables - third party and affiliates —
—
134
1,004
(149 ) 989
Non-trade receivables, net 40
513
230
412
(935 ) 260
Inventories, net —
—
246
616
(53 ) 809
Marketable securities, at fair value —
—
31
—
—
31
Other assets —
51
14
104
(106 ) 63
Total current assets 40
569
725
2,522
(1,243 ) 2,613
Investments in affiliates 2,675
4,317
3,977
826
(10,857 ) 938
Property, plant and equipment, net —
—
1,106
2,600
—
3,706
Deferred income taxes —
2
103
98
(2 ) 201
Other assets —
878
120
169
(861 ) 306
Goodwill —
—
314
681
—
995
Intangible assets, net —
—
49
254
—
303
Total assets 2,715
5,766
6,394
7,150
(12,963 ) 9,062
LIABILITIES AND EQUITY
Current Liabilities
Short-term borrowings and current installments of long-term debt - third party and affiliates —
245
138
307
(255 ) 435
Trade payables - third party and affiliates —
—
261
583
(149 ) 695
Other liabilities —
82
241
285
(265 ) 343
Income taxes payable —
—
574
24
(521 ) 77
Total current liabilities —
327
1,214
1,199
(1,190 ) 1,550
Noncurrent Liabilities
Long-term debt —
2,764
899
159
(868 ) 2,954
Deferred income taxes —
—
16
181
(2 ) 195
Uncertain tax positions —
—
7
148
(2 ) 153
Benefit obligations —
—
558
287
—
845
Other liabilities —
—
58
172
—
230
Total noncurrent liabilities —
2,764
1,538
947
(872 ) 4,377
Total Celanese Corporation stockholders' equity 2,715
2,675
3,642
4,584
(10,901 ) 2,715
Noncontrolling interests —
—
—
420
—
420
Total equity 2,715
2,675
3,642
5,004
(10,901 ) 3,135
Total liabilities and equity 2,715
5,766
6,394
7,150
(12,963 ) 9,062

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~~CELANESE CORPORATION AND SUBSIDIARIES~~

~~UNAUDITED CONSOLIDATING BALANCE SHEET~~

As of December 31, 2016

Parent
Guarantor
Issuer
Subsidiary
Guarantors

Non-
Guarantors
Eliminations Consolidated
(In $ millions)
ASSETS
Current Assets
Cash and cash equivalents —
—
51
587
—
638
Trade receivables - third party and affiliates —
—
107
819
(125 ) 801
Non-trade receivables, net 40
499
249
308
(873 ) 223
Inventories, net —
—
239
526
(45 ) 720
Marketable securities, at fair value —
—
30
—
—
30
Other assets —
42
25
76
(83 ) 60
Total current assets 40
541
701
2,316
(1,126 ) 2,472
Investments in affiliates 2,548
4,029
3,655
752
(10,132 ) 852
Property, plant and equipment, net —
—
1,049
2,528
—
3,577
Deferred income taxes —
—
91
86
(18 ) 159
Other assets ��
705
133
156
(687 ) 307
Goodwill —
—
314
482
—
796
Intangible assets, net —
—
48
146
—
194
Total assets 2,588
5,275
5,991
6,466
(11,963 ) 8,357
LIABILITIES AND EQUITY
Current Liabilities
Short-term borrowings and current installments of long-term debt - third party and affiliates —
6
133
250
(271 ) 118
Trade payables - third party and affiliates —
—
226
524
(125 ) 625
Other liabilities —
58
167
262
(165 ) 322
Income taxes payable —
—
454
75
(517 ) 12
Total current liabilities —
64
980
1,111
(1,078 ) 1,077
Noncurrent Liabilities
Long-term debt —
2,647
727
210
(694 ) 2,890
Deferred income taxes —
16
—
132
(18 ) 130
Uncertain tax positions —
—
3
130
(2 ) 131
Benefit obligations —
—
636
257
—
893
Other liabilities —
—
74
142
(1 ) 215
Total noncurrent liabilities —
2,663
1,440
871
(715 ) 4,259
Total Celanese Corporation stockholders' equity 2,588
2,548
3,571
4,051
(10,170 ) 2,588
Noncontrolling interests —
—
—
433
—
433
Total equity 2,588
2,548
3,571
4,484
(10,170 ) 3,021
Total liabilities and equity 2,588
5,275
5,991
6,466
(11,963 ) 8,357

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~~CELANESE CORPORATION AND SUBSIDIARIES~~

~~UNAUDITED INTERIM CONSOLIDATING STATEMENT OF CASH FLOWS~~

Nine Months Ended September 30, 2017

Parent
Guarantor
Issuer
Subsidiary
Guarantors

Non-
Guarantors
Eliminations Consolidated
(In $ millions)
Net cash provided by (used in) operating activities 677
623
571
403
(1,529 ) 745
Investing Activities
Capital expenditures on property, plant and equipment —
—
(122 ) (58 ) —
(180 )
Acquisitions, net of cash acquired —
(11 ) (12 ) (265 ) 19
(269 )
Proceeds from sale of businesses and assets, net —
—
—
20
(19 ) 1
Return of capital from subsidiary —
—
18
—
(18 ) —
Contributions to subsidiary —
—
—
—
—
—
Intercompany loan receipts (disbursements) —
(174 ) (25 ) —
199
—
Other, net —
—
(1 ) (8 ) —
(9 )
Net cash provided by (used in) investing activities —
(185 ) (142 ) (311 ) 181
(457 )
Financing Activities

Net change in short-term borrowings with maturities of 3 months or less —
245
5
(1 ) (25 ) 224
Proceeds from short-term borrowings —
—
—
150
—
150
Repayments of short-term borrowings —
—
—
(91 ) —
(91 )
Proceeds from long-term debt —
—
174
—
(174 ) —
Repayments of long-term debt —
—
(1 ) (64 ) —
(65 )
Purchases of treasury stock, including related fees (500 ) —
—
—
—
(500 )
Dividends to parent —
(678 ) (571 ) (280 ) 1,529
—
Contributions from parent —
—
—
—
—
—
Stock option exercises 1
—
—
—
—
1
Series A common stock dividends (178 ) —
—
—
—
(178 )
Return of capital to parent —
—
—
(18 ) 18
—
(Distributions to) contributions from noncontrolling interests —
—
—
(18 ) —
(18 )
Other, net —
—
(17 ) (2 ) —
(19 )
Net cash provided by (used in) financing activities (677 ) (433 ) (410 ) (324 ) 1,348
(496 )
Exchange rate effects on cash and cash equivalents —
—
—
31
—
31
Net increase (decrease) in cash and cash equivalents —
5
19
(201 ) —
(177 )
Cash and cash equivalents as of beginning of period —
—
51
587
—
638
Cash and cash equivalents as of end of period —
5
70
386
—
461

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~~CELANESE CORPORATION AND SUBSIDIARIES~~

~~UNAUDITED INTERIM CONSOLIDATING STATEMENT OF CASH FLOWS~~

Nine Months Ended September 30, 2016

Parent
Guarantor
Issuer
Subsidiary
Guarantors

Non-
Guarantors
Eliminations Consolidated
(In $ millions)
Net cash provided by (used in) operating activities 447
437
299
602
(845 ) 940
Investing Activities
Capital expenditures on property, plant and equipment —
—
(100 ) (86 ) —
(186 )
Acquisitions, net of cash acquired —
—
—
—
—
—
Proceeds from sale of businesses and assets, net —
—
1
7
—
8
Return of capital from subsidiary —
145
750
—
(895 ) —
Contributions to subsidiary —
—
—
—
—
—
Intercompany loan receipts (disbursements) —
(283 ) (9 ) 90
202
—
Other, net —
—
(9 ) (5 ) —
(14 )
Net cash provided by (used in) investing activities —
(138 ) 633
6
(693 ) (192 )
Financing Activities
Net change in short-term borrowings with maturities of 3 months or less —
(344 ) 6
—
(9 ) (347 )
Proceeds from short-term borrowings —
—
—
39
—
39
Repayments of short-term borrowings —
—
—
(76 ) —
(76 )
Proceeds from long-term debt —
1,589
746
—
(826 ) 1,509
Repayments of long-term debt —
(1,082 ) (635 ) (11 ) 633
(1,095 )
Purchases of treasury stock, including related fees (300 ) —
—
—
—
(300 )
Dividends to parent —
(447 ) (398 ) —
845
—
Contributions from parent —
—
—
—
—
—
Stock option exercises 3
—
—
—
—
3
Series A common stock dividends (150 ) —
—
—
—
(150 )
Return of capital to parent —
—
—
(895 ) 895
—
(Distributions to) contributions from noncontrolling interests —
—
—
(15 ) —
(15 )
Other, net —
(13 ) (20 ) (2 ) —
(35 )
Net cash provided by (used in) financing activities (447 ) (297 ) (301 ) (960 ) 1,538
(467 )
Exchange rate effects on cash and cash equivalents —
—
—
4
—
4
Net increase (decrease) in cash and cash equivalents —
2
631
(348 ) —
285
Cash and cash equivalents as of beginning of period —
—
21
946
—
967
Cash and cash equivalents as of end of period —
2
652
598
—
1,252

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

In this Quarterly Report on Form 10-Q ("Quarterly Report"), the term "Celanese" refers to Celanese Corporation, a Delaware corporation, and not its subsidiaries. The terms the "Company," "we," "our" and "us," refer to Celanese and its subsidiaries on a consolidated basis. The term "Celanese ~~US"~~U.S." refers to the Company's subsidiary, Celanese US Holdings LLC, a Delaware limited liability company, and not its subsidiaries.

The following discussion should be read in conjunction with the Celanese Corporation and Subsidiaries consolidated financial statements as of and for the year ended December 31, ~~2016~~2022 filed on February ~~10, 2017~~24, 2023 with the Securities and Exchange Commission ("SEC") as part of the Company's Annual ~~Reporting~~Report on Form 10-K ("~~2016~~2022 Form 10-K") and the unaudited interim consolidated financial statements and notes to the unaudited interim consolidated financial statements herein, which are prepared in accordance with accounting principles generally accepted in the United States of America ("USU.S. GAAP").

Investors are cautioned that the forward-looking statements contained in this section and other parts of this Quarterly Report involve both risk and uncertainty. Several important factors could cause actual results to differ materially from those anticipated by these statements. Many of these statements are macroeconomic in nature and are, therefore, beyond the control of management. See "Forward-Looking Statements" below and at the beginning of our ~~2016~~2022 Form 10-K.

Forward-Looking Statements

Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") and other parts of this Quarterly Report contain certain forward-looking statements and information relating to us that are based on the beliefs of our management as well as assumptions made by, and information currently available to, us. Generally, words such as "believe," "expect," "intend," "estimate," "anticipate," "project," "plan," "may," "can," "could," "might," and "will," and similar expressions, as they relate to us are intended to identify forward-looking statements. These statements reflect our current views and beliefs with respect to future events at the time that the statements are made, are not historical facts or guarantees of future performance and involve risks and uncertainties that are difficult to predict and many of which are outside of our control. Further, certain forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. All forward-looking statements made in this Quarterly Report are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed in this Quarterly Report will increase with the passage of time. We undertake no obligation, and disclaim any duty, to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changes in our expectations or otherwise.

Risk Factors

See Part I - Item 1A. Risk Factors of our ~~2016~~2022 Form 10-K ~~and subsequent periodic filings we make with the SEC~~ for a description of certain risk factors that you should consider which could significantly affect our financial results. In addition, the following factors, among others, could cause our actual results to differ materially from those results, performance or achievements that may be expressed or implied by such forward-looking ~~statements. These factors include, among other things:~~statements:

•changes in general economic, business, political and regulatory conditions in the countries or regions in which we operate;

~~the length and depth of product and industry business cycles particularly in the automotive, electrical, textiles, electronics and construction industries;~~

•volatility or changes in the price and availability of raw materials and energy, particularly changes in the demand for, supply of, and market prices of ethylene, methanol, natural gas, wood pulp and fuel oil and the prices for electricity and other energy sources;

•the length and depth of product and industry business cycles particularly in the automotive, electrical, textiles, electronics and construction industries;

•the ability to pass increases in raw material prices, logistics costs and other costs on to customers or otherwise improve margins through price increases;

•the accuracy or inaccuracy of our beliefs or assumptions regarding anticipated benefits of the acquisition (the "M&M Acquisition") by us of the majority of the Mobility & Materials business (the "M&M Business") of DuPont de Nemours, Inc. ("DuPont");

•the possibility that we will not be able to realize all of the anticipated improvements in the M&M Business's financial performance – including optimizing pricing, currency mix and inventory – or realize all of the anticipated benefits of the M&M Acquisition, including synergies and growth opportunities, within the anticipated timeframe or at all, whether as a

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result of difficulties arising from the operation or integration of the M&M Business or other unanticipated delays, costs, inefficiencies or liabilities;

•increased commercial, legal or regulatory complexity of entering into, or expanding our exposure to, certain end markets and geographies;

•risks in the global economy and equity and credit markets and their potential impact on our ability to pay down debt in the future and/or refinance at suitable rates, in a timely manner, or at all;

•diversion of management's attention from ongoing business operations and opportunities and other disruption caused by the M&M Acquisition and the integration processes and their impact on our existing business and relationships;

•risks and costs associated with increased leverage from the M&M Acquisition, including increased interest expense and potential reduction of business and strategic flexibility;

•the ability to maintain plant utilization rates and to implement planned capacity additions, expansions and maintenance;

•the ability to reduce or maintain current levels of production costs and to improve productivity by implementing technological improvements to existing plants;

•increased price competition and the introduction of competing products by other companies;

•the ability to identify desirable potential acquisition ~~targets~~or divestiture opportunities and to ~~consummate acquisition or investment~~complete such transactions, including obtaining regulatory approvals, consistent with our strategy;

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•market acceptance of our products and technology;

~~the ability to obtain governmental approvals and to construct facilities on terms and schedules acceptable to us;~~

~~changes in the degree of intellectual property and other legal protection afforded to our products or technologies, or the theft of such intellectual property;~~

•compliance and other costs and potential disruption or interruption of production or operations due to accidents, interruptions in sources of raw materials, ~~cyber security~~transportation, logistics or supply chain disruptions, cybersecurity incidents, terrorism or political unrest, public health crises (including, but not limited to, the COVID-19 pandemic), or other unforeseen events or delays in construction or operation of facilities, including as a result of geopolitical conditions, the occurrence of acts of war (such as the Russia-Ukraine conflict) or terrorist incidents or as a result of weather, natural disasters, or ~~natural disasters;~~other crises;

•the ability to obtain governmental approvals and to construct facilities on terms and schedules acceptable to us;

•changes in applicable tariffs, duties and trade agreements, tax rates or legislation throughout the world including, but not limited to, adjustments, changes in estimates or interpretations or the resolution of tax examinations or audits that may impact recorded or future tax impacts and potential regulatory and legislative tax developments in the United States and other jurisdictions;

•changes in the degree of intellectual property and other legal protection afforded to our products or technologies, or the theft of such intellectual property;

•potential liability for remedial actions and increased costs under existing or future environmental, health and safety regulations, including those relating to climate ~~change;~~change or other sustainability matters;

•potential liability resulting from pending or future claims or litigation, including investigations or enforcement actions, or from changes in the laws, regulations or policies of governments or other governmental activities, in the countries in which we operate;

•changes in currency exchange rates and interest rates; and

~~our level of indebtedness, which could diminish our ability to raise additional capital to fund operations or limit our ability to react to changes in the economy or the chemicals industry; and~~

•various other factors, both referenced and not referenced in this Quarterly Report.

Many of these factors are macroeconomic in nature and are, therefore, beyond our control. Should one or more of these risks or uncertainties materialize, affect us in ways or to an extent that we currently do not expect or consider to be significant, or should underlying assumptions prove incorrect, our actual results, performance or achievements may vary materially from those described in this Quarterly Report as anticipated, believed, estimated, expected, intended, planned or projected. We neither intend nor assume any obligation to update these forward-looking statements, which speak only as of their dates.

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Overview

We are a global ~~technology~~chemical and specialty materials company. We are a leading global producer of high performance engineered polymers that are used in a variety of high-value applications, as well as one of the world's largest producers of acetyl products, which are intermediate chemicals, for nearly all major ~~industries, as well as a leading global producer of high performance engineered polymers that are used in a variety of high-value applications.~~industries. As a recognized innovator in the chemicals industry, we engineer and manufacture a wide variety of products essential to everyday living. Our broad product portfolio serves a diverse set of end-use applications including ~~paints and coatings, textiles,~~ automotive, ~~applications, consumer and medical applications, performance industrial applications, filtration applications, paper and packaging,~~ chemical additives, construction, consumer and industrial adhesives, ~~and~~medical, consumer electronics, energy storage, filtration, food and beverage, ~~applications.~~paints and coatings, paper and packaging, performance industrial and textiles. Our products enjoy leading global positions due to our differentiated business models, large global production capacity, operating efficiencies, proprietary technology and competitive cost structures.

Our large and diverse global customer base primarily consists of major companies inacross a broad array of industries. We hold geographically balanced global positions and participate in diversified end-use applications. We combine a demonstrated track record of execution, strong performance built on ~~shared principles and objectives,~~differentiated business models and a clear focus on growth and value creation. Known for operational excellence, reliability and execution of our business strategies, we ~~deliver value to~~partner with our customers around the globe ~~with~~to deliver best-in-class technologies and solutions.

We are organized around two complementary cores, Materials Solutions and the Acetyl Chain. Together, these two value drivers share raw materials, technology, integrated systems and research resources to increase efficiency and quickly respond to market needs. Within Materials Solutions and the Acetyl Chain, we operate principally through four business segments: Materials Solutions includes Advanced Engineered Materials and Consumer Specialties business segments (which includes our cellulose derivatives business), and the Acetyl Chain includes Industrial Specialties and Acetyl Intermediates business segments.

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Results of Operations

Financial Highlights


	Three Months Ended September 30,						Nine Months Ended September 30,							Three Months Ended June 30,					Six Months Ended June 30,
	2017		2016		Change		2017		2016		Change			2023		2022		Change	2023		2022		Change
	(unaudited)													(unaudited)
	(In $ millions, except percentages)													(In $ millions, except percentages)
Statement of Operations Data													Statement of Operations Data
Net sales	1,566		1,323		243		4,547		4,078		469		Net sales	2,795		2,486		309	5,648		5,024		624
Gross profit	385		355		30		1,104		1,083		21		Gross profit	686		705		(19)	1,317		1,450		(133)
Selling, general and administrative ("SG&A") expenses	(112	)	(81	)	(31	)	(291	)	(232	)	(59	)	Selling, general and administrative ("SG&A") expenses	(274)		(197)		(77)	(559)		(371)		(188)
Other (charges) gains, net	—		(3	)	3		(58	)	(12	)	(46	)	Other (charges) gains, net	(10)		1		(11)	(33)		—		(33)
Operating profit (loss)	252		246		6		684		776		(92	)	Operating profit (loss)	335		483		(148)	586		1,014		(428)
Equity in net earnings of affiliates	50		41		9		135		114		21
Equity in net earnings (loss) of affiliates													Equity in net earnings (loss) of affiliates	23		60		(37)	38		116		(78)
Non-operating pension and other postretirement employee benefit (expense) income													Non-operating pension and other postretirement employee benefit (expense) income	(2)		25		(27)	(1)		49		(50)
Interest expense	(32	)	(28	)	(4	)	(91	)	(91	)	—		Interest expense	(182)		(48)		(134)	(364)		(83)		(281)
Refinancing expense	—		(4	)	4		—		(6	)	6
Dividend income - cost investments	24		26		(2	)	82		82		—

Interest income													Interest income	7		1		6	15		2		13
Dividend income - equity investments													Dividend income - equity investments	31		36		(5)	65		73		(8)
Earnings (loss) from continuing operations before tax	289		281		8		810		874		(64	)	Earnings (loss) from continuing operations before tax	216		554		(338)	337		1,170		(833)
Earnings (loss) from continuing operations	232		266		(34	)	657		747		(90	)	Earnings (loss) from continuing operations	220		442		(222)	316		946		(630)
Earnings (loss) from discontinued operations	(4	)	(3	)	(1	)	(12	)	(2	)	(10	)	Earnings (loss) from discontinued operations	1		(6)		7	(2)		(6)		4
Net earnings (loss)	228		263		(35	)	645		745		(100	)	Net earnings (loss)	221		436		(215)	314		940		(626)
Net earnings (loss) attributable to Celanese Corporation	226		262		(36	)	640		740		(100	)	Net earnings (loss) attributable to Celanese Corporation	220		434		(214)	311		936		(625)
Other Data													Other Data
Depreciation and amortization	80		72		8		226		218		8		Depreciation and amortization	172		103		69	344		209		135
SG&A expenses as a percentage of Net sales	7.2	%	6.1	%			6.4	%	5.7	%			SG&A expenses as a percentage of Net sales	9.8	%	7.9	%		9.9	%	7.4	%
Operating margin⁽¹⁾	16.1	%	18.6	%			15.0	%	19.0	%			Operating margin(1)	12.0	%	19.4	%		10.4	%	20.2	%

Other (charges) gains, net													Other (charges) gains, net
Employee termination benefits	—		(3	)	3		(4	)	(11	)	7
InfraServ ownership change	—		—		—		(4	)	—		(4	)
Asset impairments	—		—		—		—		(1	)	1
Other plant/office closures	—		—		—		(50	)	—		(50	)
Restructuring													Restructuring	(10)		1		(11)	(33)		—		(33)

Total Other (charges) gains, net	—		(3	)	3		(58	)	(12	)	(46	)	Total Other (charges) gains, net	(10)		1		(11)	(33)		—		(33)


⁽¹⁾	~~Defined as Operating profit (loss) divided by Net sales.~~

As of
September 30,
2017 As of
December 31,
2016
(unaudited)
(In $ millions)
Balance Sheet Data
Cash and cash equivalents 461
638

Short-term borrowings and current installments of long-term debt - third party and affiliates 435
118
Long-term debt, net of unamortized deferred financing costs 2,954
2,890
Total debt 3,389
3,008

(1)Defined as Operating profit (loss) divided by Net sales.

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	As of June 30, 2023	As of December 31, 2022
	(unaudited)
	(In $ millions)
Balance Sheet Data
Cash and cash equivalents	1,296	1,508

Short-term borrowings and current installments of long-term debt - third party and affiliates	1,507	1,306
Long-term debt, net of unamortized deferred financing costs	12,889	13,373
Total debt	14,396	14,679

Factors Affecting Business Segment Net Sales

The percentage increase (decrease) in Net sales attributable to each of the factors indicated for each of our business segments is as follows:

Three Months Ended ~~September~~June 30, ~~2017~~2023 Compared to Three Months Ended ~~September~~June 30, ~~2016~~2022


	Volume	Price	Currency	Total
	(unaudited)
	(In percentages)
Engineered Materials	75	(8)	—	67

Acetyl Chain	(2)	(19)	—	(21)
Total Company	27	(15)	—	12

Volume Price Currency Other Total
(unaudited)
(In percentages)
Advanced Engineered Materials 49
(2 ) 2 —
49
Consumer Specialties (10 ) (8 ) 1 —
(17 )
Industrial Specialties 2
4
2 —
8
Acetyl Intermediates (1 ) 16
1 —
16
Total Company 11
6
2 (1 ) 18

~~Nine~~Six Months Ended ~~September~~June 30, ~~2017~~2023 Compared to ~~Nine~~Six Months Ended ~~September~~June 30, ~~2016~~2022


	Volume	Price	Currency	Total
	(unaudited)
	(In percentages)
Engineered Materials	77	(2)	(2)	73

Acetyl Chain	(5)	(17)	(1)	(23)
Total Company	26	(12)	(2)	12

Volume Price Currency Other Total
(unaudited)
(In percentages)
Advanced Engineered Materials 45
(2 ) —
— 43
Consumer Specialties (7 ) (8 ) —
— (15 )
Industrial Specialties 1
1
(1 ) — 1
Acetyl Intermediates (6 ) 12
—
— 6
Total Company 8
4
—
— 12

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Consolidated Results

Three Months Ended ~~September~~June 30, ~~2017~~2023 Compared to Three Months Ended ~~September~~June 30, ~~2016~~2022

Net sales increased ~~$243~~$309 million, or ~~18.4%~~12%, for the three months ended ~~September~~June 30, ~~2017~~2023 compared to the same period in ~~2016~~2022, primarily due to:

•

•higher volume in our Advanced Engineered Materials segment, primarily related to Net sales generated from SO.F.TER. S.p.A. ("SOFTER") and from the nylon compounding division of Nilit Group ("Nilit"), that we acquired on May 3, 2017. See ~~Note 3 - Acquisitions, Dispositions and Plant Closures~~ ~~in the accompanying unaudited interim consolidated financial statements for further information; and~~

~~higher pricing for most of our products~~ in our ~~Acetyl Intermediates segment;~~Engineered Materials segment, primarily related to the M&M Acquisition and the KEPCO restructuring (see Note 3 - Acquisitions, Dispositions and Plant Closures in the accompanying unaudited interim consolidated financial statements for further information);

partially offset by:

•lower ~~acetate tow~~ pricing, primarily driven by our Acetyl Chain segment due to weaker economic conditions particularly in Asia, as well our Engineered Materials segment due to decreased energy surcharges, an unfavorable product mix, primarily in Asia and reduced pricing due to market considerations; and

•lower volume in our ~~Consumer Specialties segment.~~Acetyl Chain segment, primarily due to decreased demand in Europe.

Operating profit ~~increased $6~~decreased $148 million, or ~~2.4%~~31%, for the three months ended ~~September~~June 30, ~~2017~~2023 compared to the same period in ~~2016~~2022, primarily due to:

•higher raw material costs and spending in our Engineered Materials segment as a result of the M&M Acquisition;

•lower Net ~~sales;~~sales in our Acetyl Chain segment; and

•an unfavorable impact of $11 million to Other (charges) gains, net related to Company-wide business optimization projects in the current year (see Note 18 - Other (Charges) Gains, Net in the accompanying unaudited interim consolidated financial statements for further information);

partially offset by:

•higher Net sales in our Engineered Materials segment; and

•lower raw material and sourcing costs ~~primarily~~ in our Acetyl ~~Intermediates segment; and~~

~~higher plant spending of $36 million in our Advanced Engineered Materials~~Chain segment, primarily ~~related to our acquisitions of SOFTER~~for ethylene, methanol and ~~Nilit, as these acquired businesses incur ongoing plant spending.~~acid.

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~~During August~~Non-operating pension and September 2017, production was temporarily halted at our plants in Bishop, Texas; Bay City, Texas; and Clear Lake, Texas due to Hurricane Harvey, resulting in lost sales opportunities. Certain fixed overhead, clean-up and restart costs, which were recorded to Cost of sales, negatively impacted operating profit in our Advanced Engineered Materials and Acetyl Intermediates segments by approximately $11other postretirement employee benefit (expense) income decreased $27 million, ~~in total during~~or 108%, for the three months ended ~~September~~June 30, ~~2017. The sites are now operational,~~2023 compared to the same period in 2022, primarily due to:

•higher interest cost and ~~we do not believe this event will have~~ lower expected return on plan assets.

Equity in net earnings (loss) of affiliates decreased $37 million for the three months ended June 30, 2023 compared to the same period in 2022, primarily due to:

•losses from our DuPont Teijin Films strategic affiliates due to restructuring; and

•a ~~significant financial impact on any~~decrease in equity investment in earnings of ~~our reporting units beyond the expected short-term impact. There was no significant asset damage at our facilities~~$4 million as a result of ~~Hurricane Harvey during the three months ended September 30, 2017.~~our KEPCO strategic affiliate restructuring.

Our effective income tax rate for the three months ended ~~September~~June 30, ~~2017~~2023 was ~~20%~~(2)% compared to 5%20% for the same period in ~~2016.~~2022. The lower effective income tax rate was primarily due to decreased earnings in high taxed jurisdictions related to current demand conditions and a decrease in valuation allowances on U.S. foreign tax credit carryforwards due to revised forecasts of foreign sourced income and expenses during the carryforward period (see Note 11 - Income Taxes in the accompanying unaudited interim consolidated financial statements for further information).

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Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022

Net sales increased $624 million, or 12%, for the six months ended June 30, 2023 compared to the same period in 2022, primarily due to:

•higher volume in our Engineered Materials segment, primarily related to the M&M Acquisition and the KEPCO restructuring (see Note 3 - Acquisitions, Dispositions and Plant Closures in the accompanying unaudited interim consolidated financial statements for further information);

partially offset by:

•lower pricing, primarily in our Engineered Materials segment due to decreased energy surcharges and an unfavorable product mix in Asia and our Acetyl Chain segment due to weaker economic conditions particularly in Asia;

•lower volume in our Acetyl Chain segment, primarily due to decreased demand in Europe; and

•unfavorable currency impacts, primarily resulting from weaker CNY and euro relative to the U.S. dollar.

Operating profit decreased $428 million, or 42%, for the six months ended June 30, 2023 compared to the same period in 2022, primarily due to:

•higher raw material costs and spending in our Engineered Materials segment as a result of the M&M Acquisition;

•lower Net sales in our Acetyl Chain segment; and

•an unfavorable impact of $33 million to Other (charges) gains, net related to Company-wide business optimization projects in the current year (see Note 18 - Other (Charges) Gains, Net in the accompanying unaudited interim consolidated financial statements for further information);

partially offset by:

•higher Net sales in our Engineered Materials segment; and

•lower raw material and sourcing costs in our Acetyl Chain segment, primarily for ethylene, methanol and acid.

Non-operating pension and other postretirement employee benefit (expense) income decreased $50 million, or 102%, for the six months ended June 30, 2023 compared to the same period in 2022, primarily due to:

•higher interest cost and lower expected return on plan assets.

Equity in net earnings (loss) of affiliates decreased $78 million for the six months ended June 30, 2023 compared to the same period in 2022, primarily due to:

•losses from our DuPont Teijin Films strategic affiliates due to restructuring; and

•a decrease in equity investment in earnings of $19 million as a result of our KEPCO strategic affiliate restructuring.

Our effective income tax rate for the ~~three~~six months ended ~~September~~June 30, ~~2017 is primarily due~~2023 was 6% compared to ~~a release of $52 million~~19% for the same period in tax positions during 2016 due to audit settlements in the US and Germany and current year foreign exchange differences in certain jurisdictions where the functional currency differs from the local currency.

~~Our~~2022. The lower effective income tax rate ~~is affected by recurring items, such as tax rates~~was primarily due to decreased earnings in ~~foreign~~high taxed jurisdictions ~~and the relative amounts and mix of income and loss in those jurisdictions~~related to ~~which they relate, as well as discrete items and non-deductible expenses that may occur in any given year, but are not consistent from year to year.~~current demand conditions. See Note 1511 - Income Taxes in the accompanying unaudited interim consolidated financial statements for further information.

~~Nine Months Ended September 30, 2017 Compared to Nine Months Ended September 30, 2016~~

~~Net sales increased $469 million, or 11.5%, for the nine months ended September 30, 2017 compared to the same period in 2016 primarily due to:~~

higher volume in our Advanced Engineered Materials segment, primarily related to Net sales generated from SOFTER and from Nilit, as well as within our base business, which was driven by new project launches and pipeline growth globally; and

~~higher pricing for most of our products in our Acetyl Intermediates segment;~~

~~partially offset by:~~

~~lower acetate tow pricing and volume in our Consumer Specialties segment; and~~

~~lower volume for ethanol in our Acetyl Intermediates segment.~~

~~Operating profit decreased $92 million, or 11.9%, for the nine months ended September 30, 2017 compared to the same period in 2016 primarily due to:~~

~~higher raw material costs, primarily in our Acetyl Intermediates segment;~~

higher plant spending of $96 million in our Advanced Engineered Materials segment, primarily related to our acquisitions of SOFTER and Nilit, as these acquired businesses incur ongoing plant spending; and

•

an unfavorable impact of $48 million to Other (charges) gains, net in our Acetyl Intermediates segment. During the nine months ended September 30, 2017, we provided notice of termination of a contract with a key raw materials supplier at our ethanol production unit in Nanjing, China. As a result, we recorded a $24 million contract termination charge and an $18 million reduction to our non-income tax receivable. See ~~Note 14 - Other (Charges) Gains, Net~~ ~~in the accompanying unaudited interim consolidated financial statements for further information;~~

~~partially offset by:~~

~~an increase in Net sales.~~

Our effective income tax rate for the nine months ended September 30, 2017 was 19% compared to 15% for the same period in 2016. The higher effective income tax rate for the nine months ended September 30, 2017 is primarily due to a release of $52 million in tax positions during 2016 due to audit settlements in the US and Germany and current year foreign exchange differences in certain jurisdictions where the functional currency differs from the local currency.

Assuming no material changes to tax rules and regulations or cash repatriation plans, we expect continued realization of operational savings in connection with the establishment of our centralized European headquarters, which will directly impact

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the mix of our earnings and may result in favorable or unfavorable income tax impacts in subsequent years. Our effective tax rate will vary based on the jurisdictions in which income is actually generated and remains subject to potential volatility from changing tax legislation in the US and other tax jurisdictions. We continue to assess our business model and its impact in various jurisdictions.

Business Segments

~~Advanced~~ Engineered Materials


	Three Months Ended September 30,				Change		% Change		Nine Months Ended September 30,				Change		% Change			Three Months Ended June 30,								Change				% Change					Six Months Ended June 30,								Change			% Change
	2017		2016			2017			2016					2023					2022									2023							2022
	(unaudited)																	(unaudited)
	(In $ millions, except percentages)																	(In $ millions, except percentages)
Net sales	543		365			178			48.8	%	1,546		1,080				466		43.1	%	Net sales	1,585			948				637					67.2		%		3,215				1,858			1,357					73.0	%
Net Sales Variance																	Net Sales Variance
Volume	49	%							45	%							Volume	75		%															77		%
Price	(2	)%							(2	)%							Price	(8)		%															(2)		%
Currency	2	%							—	%							Currency	—		%															(2)		%
Other	—	%							—	%							Other	—		%															—		%
Other (charges) gains, net	—		—		—		—	%	(2	)	(2	)	—		—	%	Other (charges) gains, net	(8)					1				(9)				(900.0)		%			(29)				—				(29)			(100.0)		%
Operating profit (loss)	97		93		4		4.3	%	292		263		29		11.0	%	Operating profit (loss)	158					166			(8)				(4.8)		%			270				290				(20)			(6.9)		%
Operating margin	17.9	%	25.5	%					18.9	%	24.4	%					Operating margin	10.0		%			17.5	%											8.4		%		15.6		%
Equity in net earnings (loss) of affiliates	45		33		12		36.4	%	125		91		34		37.4	%	Equity in net earnings (loss) of affiliates	18					53			(35)				(66.0)		%			29				102				(73)			(71.6)		%

Depreciation and amortization	29		22		7		31.8	%	79		71		8		11.3	%	Depreciation and amortization	112					45			67				148.9		%			224				91				133			146.2		%

Our ~~Advanced~~ Engineered Materials segment includes our engineered materials business, our food ingredients business and certain strategic affiliates. Our 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 our strategic affiliates, our engineered materials business is a leading participant in the global specialty polymers industry.

The pricing of products bywithin the ~~Advanced~~ Engineered Materials segment is primarily based on the value of the material we produce and is ~~largely~~generally independent of changes in the cost of raw ~~materials.~~materials, but may be impacted during periods of inflation and increased costs. Therefore, in general, margins may expand or contract in response to changes in raw material costs. We attempt to address increases in raw material costs through appropriate pricing actions.

Three Months Ended ~~September~~June 30, ~~2017~~2023 Compared to Three Months Ended ~~September~~June 30, ~~2016~~2022

Net sales increased for the three months ended ~~September~~June 30, ~~2017~~2023 compared to the same period in ~~2016~~2022, primarily due to:

•higher volume, primarily ~~due to Net sales generated from SOFTER and from Nilit, which represents approximately three-fourths of the increase in volume; and~~

~~higher volume within our base business driven by new project launches and pipeline growth, which represents the remainder of the volume growth.~~

~~Operating profit increased for the three months ended September 30, 2017 compared~~related to the ~~same period in 2016 primarily due to:~~

~~higher Net sales;~~

~~partially offset by:~~

~~higher plant spending of $36 million, primarily related to our acquisitions of SOFTER and Nilit in December 2016 and May 2017, respectively, as these acquired businesses incur ongoing plant spending;~~

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~~higher energy and raw material costs, primarily related to methanol; and~~

~~higher depreciation and amortization expense, primarily related to our acquisitions of SOFTER and Nilit.~~

~~Equity in net earnings (loss) of affiliates increased for the three months ended September 30, 2017 compared to the same period in 2016 primarily due to:~~

an increase in equity investment in earnings of $5 million and $4 million from our Polyplastics Co., Ltd. ("Polyplastics") and Ibn Sina strategic affiliates, respectively, as a result of higher demand at Polyplastics and higher pricing and timing of turnaround activity at Ibn Sina.

~~Nine Months Ended September 30, 2017 Compared to Nine Months Ended September 30, 2016~~

~~Net sales increased for the nine months ended September 30, 2017 compared to the same period in 2016 primarily due to:~~

~~higher volume primarily due to Net sales generated from SOFTER and from Nilit, which represents approximately two-thirds of the increase in volume; and~~

~~higher volume within our base business driven by new project launches and pipeline growth globally, which represents the remainder of the volume growth;~~

~~partially offset by:~~

~~lower pricing for most of our products due to customer and regional mix.~~

~~Operating profit increased for the nine months ended September 30, 2017 compared to the same period in 2016 primarily due to:~~

~~higher Net sales;~~

~~partially offset by:~~

~~higher plant spending of $96 million, primarily related to our acquisitions of SOFTER and Nilit, as these acquired businesses incur ongoing plant spending;~~

~~higher energy and raw material costs, primarily related to methanol; and~~

~~higher depreciation and amortization expense, primarily related to our acquisitions of SOFTER and Nilit.~~

~~Equity in net earnings (loss) of affiliates increased for the nine months ended September 30, 2017 compared to the same period in 2016 primarily due to:~~

an increase in equity investment in earnings of $12 million and $10 million from our Ibn Sina and Polyplastics strategic affiliates, respectively, as a result of higher pricing and timing of turnaround activity at Ibn Sina and higher demand at Polyplastics.

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~~Consumer Specialties~~

Three Months Ended September 30, Change % Change Nine Months Ended September 30, Change % Change
2017 2016 2017 2016
(unaudited)
(In $ millions, except percentages)
Net sales 187
225
(38 ) (16.9 )% 598
704
(106 ) (15.1 )%
Net Sales Variance
Volume (10 )% (7 )%
Price (8 )% (8 )%
Currency 1 % — %
Other — % — %
Other (charges) gains, net —
(1 ) 1
(100.0 )% (2 ) (1 ) (1 ) 100.0 %
Operating profit (loss) 53
68
(15 ) (22.1 )% 170
226
(56 ) (24.8 )%
Operating margin 28.3 % 30.2 % 28.4 % 32.1 %
Equity in net earnings (loss) of affiliates 2
1
1
100.0 % 3
2
1
50.0 %
Dividend income - cost investments 24
26
(2 ) (7.7 )% 81
81
—
— %
Depreciation and amortization 11
12
(1 ) (8.3 )% 33
34
(1 ) (2.9 )%

Our Consumer Specialties segment includes our cellulose derivatives and food ingredients businesses, which serve consumer-driven applications. Our cellulose derivatives business is a leading global producer and supplier of acetate tow and acetate flake, primarily used in filter products applications. Our food ingredients business is a leading global supplier of acesulfame potassium for the food and beverage industry and is a leading producer of food protection ingredients, such as potassium sorbate and sorbic acid.

The pricing of products within the cellulose derivatives and food ingredients businesses is sensitive to demand and is primarily based on the value of the material we produce. Many sales in these businesses are conducted under contracts with pricing for one or more years. As a result, margins may expand or contract in response to changes in raw material costs over these similar periods, and we may be unable to adjust pricing also due to other factors, such as the intense level of competition in the industry.

~~Three Months Ended September 30, 2017~~ ~~Compared to~~ ~~Three Months Ended September 30, 2016~~

~~Net sales decreased for the three months ended September 30, 2017 compared to the same period in 2016 primarily due to:~~

~~lower acetate tow pricing and volume due to lower global industry utilization.~~

~~Operating profit decreased for the three months ended September 30, 2017 compared to the same period in 2016 primarily due to:~~

~~lower Net sales;~~

~~partially offset by:~~

~~lower spending and raw material costs of $13 million primarily related to productivity initiatives in our cellulose derivatives business.~~

~~Nine Months Ended September 30, 2017~~ ~~Compared to~~ ~~Nine Months Ended September 30, 2016~~

~~Net sales decreased for the nine months ended September 30, 2017 compared to the same period in 2016 primarily due to:~~

~~lower acetate tow pricing and volume due to lower global industry utilization.~~

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~~Operating profit decreased for the nine months ended September 30, 2017 compared to the same period in 2016 primarily due to:~~

~~lower Net sales;~~

~~partially offset by:~~

~~lower spending and raw material costs of $35 million primarily related to productivity initiatives in our cellulose derivatives business.~~

partially offset by:

~~Industrial Specialties~~•lower pricing for most of our products, primarily due to decreased energy surcharges, an unfavorable product mix, primarily in Asia, and reduced pricing due to market considerations.

Operating profit decreased for the three months ended June 30, 2023 compared to the same period in 2022, primarily due to:

•higher raw material costs as a result of the M&M Acquisition;

•higher spending of $187 million as a result of the M&M Acquisition; and

•an unfavorable impact of $9 million to Other (charges) gains, net related to Company-wide business optimization projects in the current year (see Note 18 - Other (Charges) Gains, Net in the accompanying unaudited interim consolidated financial statements for further information);

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Three Months Ended September 30, Change % Change Nine Months Ended September 30, Change % Change
2017 2016 2017 2016
(unaudited)
(In $ millions, except percentages)
Net sales 264
245
19
7.8 % 771
760
11
1.4 %
Net Sales Variance
Volume 2 % 1 %
Price 4 % 1 %
Currency 2 % (1 )%
Other — % — %
Other (charges) gains, net —
—
—
— % —
(3 ) 3
(100.0 )%
Operating profit (loss) 20
25
(5 ) (20.0 )% 71
85
(14 ) (16.5 )%
Operating margin 7.6 % 10.2 %
9.2 % 11.2 %
Depreciation and amortization 10
9
1
11.1 % 28
25
3
12.0 %
largely offset by:

•higher Net sales.

Equity in net earnings (loss) of affiliates decreased for the three months ended June 30, 2023 compared to the same period in 2022, primarily due to:

•losses from our DuPont Teijin Films strategic affiliates due to restructuring; and

•a decrease in equity investment in earnings of $4 million as a result of our KEPCO strategic affiliate restructuring.

Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022

Net sales increased for the six months ended June 30, 2023 compared to the same period in 2022, primarily due to:

•higher volume, primarily related to the M&M Acquisition and the KEPCO restructuring (see Note 3 - Acquisitions, Dispositions and Plant Closures in the accompanying unaudited interim consolidated financial statements for further information);

partially offset by:

•lower pricing for most of our products, primarily due to decreased energy surcharges and an unfavorable product mix, primarily in Asia; and

•an unfavorable currency impact resulting from a weaker CNY and euro relative to the U.S. dollar.

Operating profit decreased for the six months ended June 30, 2023 compared to the same period in 2022, primarily due to:

•higher raw material costs as a result of the M&M Acquisition;

•higher spending of $374 million as a result of the M&M Acquisition; and

•an unfavorable impact of $29 million to Other (charges) gains, net related to Company-wide business optimization projects in the current year (see Note 18 - Other (Charges) Gains, Net in the accompanying unaudited interim consolidated financial statements for further information);

largely offset by:

•higher Net sales.

Equity in net earnings (loss) of affiliates decreased for the six months ended June 30, 2023 compared to the same period in 2022, primarily due to:

•losses from our DuPont Teijin Films strategic affiliates due to restructuring; and

•a decrease in equity investment in earnings of $19 million as a result of our KEPCO strategic affiliate restructuring.

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Acetyl Chain


	Three Months Ended June 30,				Change	% Change		Six Months Ended June 30,				Change	% Change
	2023		2022					2023		2022
	(unaudited)
	(In $ millions, except percentages)
Net sales	1,233		1,559		(326)	(20.9)	%	2,483		3,211		(728)	(22.7)	%
Net Sales Variance
Volume	(2)	%						(5)	%
Price	(19)	%						(17)	%
Currency	—	%						(1)	%
Other	—	%						—	%

Operating profit (loss)	295		428		(133)	(31.1)	%	573		931		(358)	(38.5)	%
Operating margin	23.9	%	27.5	%				23.1	%	29.0	%

Dividend income - equity investments	30		36		(6)	(16.7)	%	63		72		(9)	(12.5)	%
Depreciation and amortization	54		52		2	3.8	%	108		108		—	—	%

Our ~~Industrial Specialties~~Acetyl Chain segment, which includes the integrated chain of our intermediate chemistry, emulsion polymers, ethylene vinyl acetate polymers, redispersible powders and ~~EVA polymers businesses. Our emulsion polymers business~~acetate tow businesses, is ~~a leading~~active in every major global ~~producer of vinyl acetate-based emulsions~~industrial sector and ~~develops products and application technologies to improve performance, create value and drive innovation in applications~~serves diverse consumer end-use applications. These include conventional uses, such as paints, ~~and~~ coatings, adhesives, ~~construction, glass fiber, textiles~~ and ~~paper. Our EVA polymers business is a leading North American manufacturer of a full range of specialty ethylene vinyl acetate ("EVA") resins and compounds~~filter products, as well as ~~select grades of low-density polyethylene. EVA polymers products are used in many applications,~~other unique, high-value end uses including flexible packaging, ~~films, lamination film products, hot melt adhesives, automotive parts~~thermal laminations, pharmaceuticals, wire and ~~carpeting.~~cable, and compounds. Together with our strategic affiliates, our Acetyl Chain businesses are leading producers and suppliers in multiple global industrial sectors.

~~Pricing~~The pricing of ~~our~~ products within ~~Industrial Specialties~~the Acetyl Chain is influenced by industry utilization rates and changes in the cost of raw materials. Therefore, in general, there is a ~~direct~~directional correlation between ~~the cost of raw materials~~these factors and our Net sales for most ~~Industrial Specialties~~Acetyl Chain products. This impact to pricing typically lags changes in raw material costs over months or quarters.

Three Months Ended ~~September~~June 30, ~~2017~~2023 Compared to Three Months Ended ~~September~~June 30, ~~2016~~2022

Net sales ~~increased~~decreased for the three months ended ~~September~~June 30, ~~2017~~2023 compared to the same period in ~~2016~~2022, primarily due to:

~~higher~~•lower pricing ~~and volume in~~for most of our ~~emulsion polymers business due to higher raw material costs for~~products, primarily vinyl acetate monomer ("VAM") ~~across all regions;~~ and acid, due to weaker economic conditions particularly in Asia, partially offset by higher pricing for acetate tow; and

~~a favorable currency impact resulting from a weak US dollar relative~~•lower volume for most of our products due to ~~the Euro.~~

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decreased demand, primarily in Europe.

Operating profit decreased for the three months ended ~~September~~June 30, ~~2017~~2023 compared to the same period in ~~2016~~2022, primarily due to:

~~higher spending and raw material costs of $15 million, primarily VAM;~~•lower Net sales;

partially offset by:

~~higher Net sales.~~•lower raw material and sourcing costs, primarily for ethylene, methanol and acid.

~~Nine~~Six Months Ended ~~September~~June 30, ~~2017~~2023 Compared to ~~Nine~~Six Months Ended ~~September~~June 30, ~~2016~~2022

Net sales ~~increased~~decreased for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2023 compared to the same period in ~~2016~~2022, primarily due to:

•lower pricing for most of our products, primarily VAM and acid, due to weaker economic conditions particularly in Asia, partially offset by higher pricing ~~and~~for acetate tow;

•lower volume infor most of our ~~emulsion polymers business~~products due to ~~higher raw material costs for VAM across all regions.~~decreased demand, primarily in Europe; and

•an unfavorable currency impact, primarily resulting from a weaker CNY relative to the U.S. dollar.

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Operating profit decreased for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2023 compared to the same period in ~~2016~~2022, primarily due to:

~~higher spending and raw material costs of $25 million, primarily VAM;~~•lower Net sales;

partially offset by:

~~higher Net sales.~~

~~Acetyl Intermediates~~

Three Months Ended September 30, Change % Change Nine Months Ended September 30, Change % Change
2017 2016 2017 2016
(unaudited)
(In $ millions, except percentages)
Net sales 684
589
95
16.1 % 1,952
1,844
108
5.9 %
Net Sales Variance
Volume (1 )% (6 )%
Price 16 % 12 %
Currency 1 % — %
Other — % — %
Other (charges) gains, net —
(1 ) 1
(100.0 )% (50 ) (2 ) (48 ) 2,400.0 %
Operating profit (loss) 128
83
45
54.2 % 264
274
(10 ) (3.6 )%
Operating margin 18.7 % 14.1 %
13.5 % 14.9 %
Equity in net earnings (loss) of affiliates 1
1
—
— % 4
4
—
— %
Depreciation and amortization 26
27
(1 ) (3.7 )% 78
81
(3 ) (3.7 )%

Our Acetyl Intermediates segment includes our intermediate chemistry business which produces and supplies acetyl products, including acetic acid, VAM, acetic anhydride and acetate esters. These products are generally used as starting materials for colorants, paints, adhesives, coatings and medicines. This business segment also produces organic solvents and intermediates for pharmaceutical, agricultural and chemical products.

Pricing of acetic acid, VAM and other acetyl products is influenced by changes in the cost of raw materials. Therefore, in general, there is a direct correlation between the cost of raw materials and our Net sales for most intermediate chemistry products. This impact to pricing typically lags changes in•lower raw material ~~costs over months or quarters.~~

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~~Three Months Ended September 30, 2017~~ ~~Compared to~~ ~~Three Months Ended September 30, 2016~~

~~Net sales increased for the three months ended September 30, 2017 compared to the same period in 2016 primarily due to:~~

~~higher pricing due to higher feedstock costs, such as methanol, which positively impacted pricing for most of our products;~~ and

~~a favorable currency impact resulting from a weak US dollar relative to the Euro.~~

~~Operating profit increased for the three months ended September 30, 2017 compared to the same period in 2016 primarily due to:~~

~~higher Net sales;~~

~~partially offset by:~~

~~higher raw material~~ sourcing costs, primarily for ethylene, methanol and ~~ethylene, with methanol making up approximately one-half of the increase and ethylene making up approximately one-fourth of the increase in raw material costs.~~acid.

~~Nine Months Ended September 30, 2017~~ ~~Compared to~~ ~~Nine Months Ended September 30, 2016~~

~~Net sales increased during the nine months ended September 30, 2017 compared to the same period in 2016 primarily due to:~~

~~higher pricing due to higher feedstock costs, such as methanol, which positively impacted pricing for most of our products;~~

~~partially offset by:~~

~~lower volume for ethanol, which represents substantially all of the decrease in volume, due to the shutdown at our ethanol production unit in Nanjing, China.~~

~~Operating profit decreased during the nine months ended September 30, 2017 compared to the same period in 2016 primarily due to:~~

higher raw material costs, primarily for methanol, ethylene and carbon monoxide, with methanol making up approximately one-half of the increase and ethylene and carbon monoxide making up the remainder of the increase in raw material costs;

•

an unfavorable impact of $48 million to Other (charges) gains, net. During the nine months ended September 30, 2017, we provided notice of termination of a contract with a key raw materials supplier at our ethanol production unit in Nanjing, China. As a result, we recorded an estimated $50 million of plant/office closure costs primarily consisting of a $24 million contract termination charge and an $18 million reduction to our non-income tax receivable. See ~~Note 14 - Other (Charges) Gains, Net~~ ~~in the accompanying unaudited interim consolidated financial statements for further information; and~~

~~an unfavorable impact of $19 million in direct costs associated with the planned turnaround at our Clear Lake, Texas site;~~

~~mostly offset by:~~

~~higher Net sales; and~~

~~cost savings of $26 million, primarily related to productivity initiatives and a duty exception in the free trade agreement between Europe and Mexico.~~

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Other Activities

Three Months Ended September 30, Change % Change Nine Months Ended September 30, Change % Change
2017 2016 2017 2016
(unaudited)
(In $ millions, except percentages)
Other (charges) gains, net —
(1 ) 1
(100.0 )% (4 ) (4 ) —
— %
Operating profit (loss) (46 ) (23 ) (23 ) 100.0 % (113 ) (73 ) (40 ) 54.8 %
Equity in net earnings (loss) of affiliates 2
6
(4 ) (66.7 )% 3
17
(14 ) (82.4 )%
Dividend income - cost investments —
—
—
— % 1
1
—
— %
Depreciation and amortization 4
2
2
100.0 % 8
7
1
14.3 %


	Three Months Ended June 30,		Change	% Change		Six Months Ended June 30,		Change	% Change
	2023	2022				2023	2022
	(unaudited)
	(In $ millions, except percentages)

Operating profit (loss)	(118)	(111)	(7)	(6.3)	%	(257)	(207)	(50)	(24.2)	%

Non-operating pension and other postretirement employee benefit (expense) income	(2)	25	(27)	(108.0)	%	(1)	49	(50)	(102.0)	%

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 ~~our~~ financing activities and results of our captive insurance companies. Other Activities also includes the ~~interest~~components of net periodic benefit cost (interest cost, expected return on assets and net actuarial gains and ~~losses components of our net periodic benefit cost~~losses) for our defined benefit pension plans and other postretirement plans ~~which are~~ not allocated to our business segments.

Three Months Ended ~~September~~June 30, ~~2017~~2023 Compared to Three Months Ended ~~September~~June 30, ~~2016~~2022

Operating loss increased for the three months ended ~~September~~June 30, ~~2017~~2023 compared to the same period in ~~2016~~2022, primarily due to:

•higher ~~functional~~project and ~~project~~functional spending of ~~$17~~$21 million, primarily related to ~~ongoing merger, acquisition~~the M&M Acquisition;

partially offset by:

•a favorable currency impact of $16 million.

Non-operating pension and ~~integration related costs;~~other postretirement employee benefit (expense) income decreased for the three months ended June 30, 2023 compared to the same period in 2022, primarily due to:

•higher interest cost and lower expected return on plan assets.

~~higher incentive compensation cost of $9 million.~~

~~Nine~~Six Months Ended ~~September~~June 30, ~~2017~~2023 Compared to ~~Nine~~Six Months Ended ~~September~~June 30, ~~2016~~2022

Operating loss increased for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2023 compared to the same period in ~~2016~~2022, primarily due to:

•higher ~~functional~~project and ~~project~~functional spending of ~~$31~~$65 million, primarily related to ~~ongoing merger, acquisition~~the M&M Acquisition;

partially offset by:

•a favorable currency impact of $23 million.

Non-operating pension and ~~integration related costs; and~~

~~higher incentive compensation cost of $12 million.~~

~~Equity in net earnings (loss) of affiliates~~other postretirement employee benefit (expense) income decreased for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2023 compared to the same period in ~~2016~~2022, primarily due to:

~~a decrease in equity investment in earnings of $4 million for InfraServ GmbH & Co. Gendorf KG~~•higher interest cost and ~~InfraServ GmbH & Co. Knapsack KG associated with a reserve for dividends received from these investments since the exercise notification was received.~~

lower expected return on plan assets.

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Liquidity and Capital Resources

Our primary ~~source~~sources of liquidity isare cash generated from operations, available cash and cash equivalents, ~~and~~ dividends from our portfolio of strategic ~~investments. In addition, as~~investments and available borrowings under our senior U.S. unsecured revolving credit facility and our China Revolving Credit Facility (defined below). As of ~~September~~June 30, ~~2017,~~2023, we have ~~$780~~$1.75 billion available for borrowing under our senior U.S. unsecured revolving credit facility, and $34 million available for borrowing under our ~~senior unsecured revolving credit facility and $7 million available under our accounts receivable securitization facility to assist,~~separate China Revolving Credit Facility, if required, in meeting our working capital needs and other contractual obligations. In addition, we held cash and cash equivalents of $1.3 billion as of June 30, 2023. We are actively managing our business to maintain and improve cash flow, and we believe that liquidity from the above-referenced sources will be sufficient to meet our operational and capital investment needs and financial obligations for the foreseeable future.

On June 22, 2023, we announced the signing of a definitive agreement to form a food ingredients joint venture with Mitsui & Co., Ltd. ("Mitsui") under the name Nutrinova. Pursuant to the agreement, we will contribute receivables, inventory, property, plant and equipment, certain intangible assets, other assets, other liabilities, technology and employees of our food ingredients business while retaining a 30% stake in the joint venture. Mitsui will acquire the remaining 70% stake at a purchase price of $473 million. We expect to close the transaction in the second half of 2023, pending regulatory approvals. For further information regarding the food ingredients joint venture, see Note 3 - Acquisitions, Dispositions and Plant Closures in the accompanying unaudited interim consolidated financial statements.

In November 2022, we acquired a majority of the M&M Business for a purchase price of $11.0 billion, subject to transaction adjustments, in an all-cash transaction. For further information regarding the acquisition, see Note 3 - Acquisitions, Dispositions and Plant Closures in the accompanying unaudited interim consolidated financial statements.

Our incurrence of debt to finance the purchase price for the M&M Acquisition has increased our leverage and our ratio of indebtedness to consolidated EBITDA as set forth in our senior unsecured credit facilities. We believe that cash flows from our operations, together with cash generation, synergy opportunities from the M&M Acquisition and cost reduction initiatives, will support our deleveraging efforts over the next few years. In furtherance of these deleveraging efforts, we have paused our share repurchase program and are in the process of evaluating additional cash generation opportunities which may also include, in addition to the food ingredients joint venture described above, additional opportunistic dispositions or monetization of other product or business lines or other assets. We are committed to rapid deleveraging and to maintaining our investment grade debt rating.

While our contractual obligations, commitments and debt service requirements over the next several years are significant, we continue to believe we will have available resources to meet our liquidity requirements, including debt service, for the next twelve months. If our cash flow from operations is insufficient to fund our debt service and other obligations, we may be required to use other means available to us such as increasing our borrowings, reducing or delaying capital expenditures, seeking additional capital or seeking to restructure or refinance our indebtedness. There can be no assurance, however, that we will continue to generate cash flows at or above current levels.

~~Total cash outflows for~~We continue to prioritize those projects expected to drive productivity in the near term and expect capital expenditures ~~are expected~~ to be ~~in the range of $250 million to $300~~approximately $500 million in ~~2017~~2023, primarily ~~due to additional~~associated with certain investments in growth opportunities ~~in our Advanced~~and productivity improvements. In Engineered Materials, at our Nanjing, China facility, our expansions of (1) the compounding plant is in construction and (2) the new liquid crystal polymer ("LCP") plant is in detailed engineering design. Our energy optimization productivity project at our polyoxymethylene ("POM") unit in Frankfurt, Germany is in detailed engineering design. In the Acetyl ~~Intermediates segments.~~Chain, our planned expansion of our acetic acid unit at Clear Lake, Texas is on track to be commissioned in the fourth quarter of 2024. The other major projects that support the Acetyl Chain are in various stages of construction and on schedule, which include our planned expansions of (1) our vinyl acetate ethylene ("VAE") emulsions units in Nanjing, China, (2) our VAE emulsion plant in Frankfurt, Germany, and (3) the sustainable production of methanol ("MeOH") at our Fairway joint venture MeOH unit in Clear Lake, Texas using captured carbon dioxide as feedstock. The expansion of our vinyl acetate monomer ("VAM") plant in Bay City, Texas is on temporary hold. We continue to see the incremental capacity from investments made in recent years strengthen our manufacturing network reliability to best serve our customers.

On a stand-alone basis, Celanese and its immediate 100% owned subsidiary, Celanese ~~US,~~U.S., have ~~no material assets other than the stock of their subsidiaries and~~ no independent external operations of their own. Accordingly, they generally depend on the cash flow of their subsidiaries and their ability to pay dividends and make other distributions to Celanese and Celanese USU.S. in order to meet their obligations, including their obligations under senior credit facilities and senior notes, and to pay dividends on our ~~Series A common stock, par value $0.0001 per share ("~~Common ~~Stock").~~Stock.

We are subject to capital controls and exchange restrictions imposed by the local governments in certain jurisdictions where we operate, such as China, South Korea, India and Indonesia. Capital controls impose limitations on our ability to exchange

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currencies, repatriate earnings or capital, lend via intercompany loans or create cross-border cash pooling arrangements. Our largest exposure to a country with capital controls is in China. Pursuant to applicable regulations, foreign-invested enterprises in China may pay dividends only out of their accumulated profits, if any, determined in accordance with Chinese accounting standards and regulations. In addition, the Chinese government imposes certain currency exchange controls on cash transfers out of China, puts certain limitations on duration, purpose and amount of intercompany loans, and restricts cross-border cash pooling. While it is possible that future tightening of these restrictions or application of new similar restrictions could impact us, these limitations do not currently restrict our operations.

We remain in compliance with the covenants in the Global Credit Agreements (defined below, and as amended to date) and expect to remain in compliance based on our current expectation of future results of operations and planned cash generation activities. If the actual future results of our operations and cash generation activities differ materially from these expectations, we may be required to seek an amendment to or waiver of any impacted covenants, which may increase our borrowing costs under the Global Credit Agreements.

Cash Flows

Cash and cash equivalents decreased ~~$177~~$212 million to ~~$461 million~~$1.3 billion as of ~~September~~June 30, ~~2017~~2023 compared to December 31, ~~2016.~~2022. As of ~~September~~June 30, ~~2017, $346 million~~2023, $1.0 billion of the ~~$461 million~~$1.3 billion of cash and cash equivalents was held by our foreign subsidiaries. ~~If these~~Under the TCJA, we have incurred a prior year charge associated with the deemed repatriation of previously unremitted foreign earnings, including foreign held cash. These funds are largely accessible over a period of time without additional material tax consequences, if needed ~~for our operations~~ in the ~~US, we will access such funds in a tax efficient manner~~U.S., to satisfy cash flow needs. Currently, there are no planned cash distributions that would result in incremental US taxes payable in excess of applicable foreign tax credits related to such undistributed earnings. As a result, we have not recorded any deferred income taxes on the portion of undistributed foreign earnings determined not to be permanently reinvested in foreignfund operations.

•Net Cash Provided by (Used in) Operating Activities

Net cash provided by operating activities decreased ~~$195~~$145 million to ~~$745~~$666 million for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2023 compared to ~~$940~~net cash provided by operating activities of $811 million for the same period in ~~2016. Net cash provided by operating activities for the nine months ended September 30, 2017 decreased~~2022, primarily due to:

~~a decrease~~•lower earnings performance; and

•an increase in ~~net earnings;~~cash interest paid of $272 million;

~~unfavorable~~partially offset by:

•favorable trade working capital of ~~$65~~$297 million, primarily due to ~~an increase in~~the timing of collections of trade receivables, inventory reduction due to lower volume, lower raw materials costs and cost of inventory, and settlement of trade payables during the six months ended June 30, 2023; and

•cash receipts of non-trade receivables of $91 million, primarily related to ~~our SOFTER~~receivable balances arising from the M&M Acquisition and ~~Nilit acquisitions; and~~transition activities.

~~an increase of $21 million in cash taxes paid.~~

•Net Cash Provided by (Used in) Investing Activities

Net cash used in investing activities increased ~~$265~~$56 million to ~~$457~~$341 million for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2023 compared to ~~$192~~net cash used in investing activities of $285 million for the same period in ~~2016,~~2022; primarily due to:

~~a net cash outflow~~•an increase of ~~$269~~$48 million ~~related to~~in capital expenditures during the ~~acquisition of Nilit in May 2017.~~six months ended June 30, 2023.

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•Net Cash Provided by (Used in) Financing Activities

Net cash used in financing activities increased ~~$29~~$262 million ~~from $467~~to $516 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2023 compared to ~~$496~~net cash used in financing activities of $254 million for the ~~nine months ended September 30, 2017,~~same period in 2022, primarily due to:

•an increase in net ~~repayments~~payments on ~~long-term~~short-term debt of ~~$479~~$340 million, primarily as a result of ~~issuing €750~~payment on our March 2022 U.S. Term Loan Credit Agreement (defined below) and revolving credit facilities partially offset by borrowings on our revolving credit facilities and China Working Capital Term Loan Agreement (defined below);

partially offset by:

•a payment of $63 million ~~in principal amount~~during the six months ended June 30, 2022 for fees related to a bridge facility commitment letter with Bank of ~~1.125%~~America, N.A. ("Bank of America") pursuant to which Bank of America had committed to provide,

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subject to the terms and conditions set forth therein, a 364-day $11.0 billion senior unsecured ~~notes due September 26, 2023,~~bridge term loan facility (the "Bridge Facility"), which did not recur in the current ~~year, and the repayment of SOFTER bank loans in January 2017;~~year; and

~~an increase of $200 million~~•a decrease in share repurchases of our Common ~~Stock;~~Stock of $17 million during the six months ended June 30, 2023.

~~partially offset by:~~Debt and Other Obligations

In March 2022, we entered into a term loan credit agreement (the "March 2022 U.S. Term Loan Credit Agreement"), pursuant to which lenders have committed to provide a tranche of delayed-draw term loans due 364 days from issuance in an ~~increase~~amount equal to $500 million and a tranche of delayed-draw term loans due 5 years from issuance in ~~net borrowings on short-term debt of $667~~an amount equal to $1.0 billion. In September 2022, we 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 have committed to provide delayed-draw term loans due 3 years from issuance in an amount equal to $750 million ~~primarily as~~(the term loans represented by the U.S. Term Loan Credit Agreements collectively, the "U.S. Term Loan Facility").

Also in March 2022, we entered into a ~~result of borrowings under our~~new revolving credit ~~facility~~agreement (the "U.S. Revolving Credit Agreement" and, ~~accounts receivable securitization facility during~~together with the ~~nine months ended September 30, 2017, as well as repayments~~U.S. Term Loan Credit Agreements the "U.S. Credit Agreements") consisting of ~~borrowings under our~~a $1.75 billion senior unsecured revolving credit facility ~~during~~(with a letter of credit sublimit), maturing in 2027. The proceeds of a $365 million borrowing under the ~~nine months ended September 30, 2016, which did not recur in the current year.~~

~~Debt and Other Obligations~~

On June 18, 2017, Celanese, through various subsidiaries, entered into an agreement with affiliates of the Blackstone Entities to form a joint venture which combines substantially all the operations of our cellulose derivatives business and the operations of the Rhodia Acetow cellulose acetate business owned by the Blackstone Entities. Closing of the transaction is subject to customary closing conditions.

In connection with the agreement, the joint venture with the Blackstone Entities obtained commitments for credit facilities aggregating $2.4 billion to be entered into by the joint venture entities at the closing consisting of (i) senior secured ($135 million) and senior unsecured ($65 million) revolving credit facilities in an aggregate principal amount of $200 million, (ii) senior secured term loan facilities in an aggregate principal amount of $1.0 billion, (iii) a senior unsecured bridge facility in an aggregate principal amount of $800 million, which bridge facility will backstop the proposed issuance of $800 million senior unsecured notes by a joint venture subsidiary, and (iv) a senior unsecured term loan facility in an aggregate principal amount of $400 million. The credit facilities will be guaranteed by certain of the subsidiaries of the respective borrowers; however, only the $65 millionnew senior unsecured revolving credit facility were used to repay and terminate our then-existing revolving credit facility.

On February 21, 2023, we amended certain covenants in the U.S. Credit Agreements, including financial ratio maintenance covenants. The U.S. Credit Agreements are guaranteed by Celanese, Celanese U.S. and domestic subsidiaries together representing substantially all of the Company's U.S. assets and business operations.

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 ~~$400 million senior unsecured term~~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 ~~credit facility~~under the China Working Capital Term Loan Agreement was fully drawn on January 10, 2023 and is supported by a letter of comfort from us. We expect the China Credit Agreements will ~~be guaranteed by Celanese. Approximately $2.2 billion~~facilitate our efficient repatriation of cash to the ~~proceeds of the debt financing are expected to be used, in part,~~U.S. to repay ~~certain~~debt and effectively redomicile a portion of ~~the parties' existing indebtedness and~~our U.S. debt to China at a $1.6 billion dividend to Celanese. We plan to use the proceeds of the dividend for general corporate purposes. Additionally, we anticipate that we will incur costs of approximately $40 million prior to the closing to carve out assets and entities in anticipation of contributing these to the joint venture. See ~~Note 3 - Acquisitions, Dispositions and Plant Closures~~ ~~in the accompanying unaudited interim consolidated financial statements for further information.~~lower average interest rate.

There have been no material changes to our debt or other obligations described in our ~~2016~~2022 Form 10-K other than those disclosed above and in Note 107 - Debt in the accompanying unaudited interim consolidated financial statements.

Accounts Receivable Purchasing Facility

On June 1, 2023, we entered into an amendment to the amended and restated receivables purchase agreement under our U.S. accounts receivable purchasing facility among certain of our subsidiaries, our wholly-owned, "bankruptcy remote" special purpose subsidiary ("SPE") and certain global financial institutions ("Purchasers"). We de-recognized $663 million and $1.1 billion of accounts receivable under this agreement for the six months ended June 30, 2023 and year ended December 31, 2022, respectively, and collected $565 million and $1.1 billion of accounts receivable sold under this agreement during the same periods. Unsold U.S. accounts receivable of $86 million were pledged by the SPE as collateral to the Purchasers as of June 30, 2023.

Factoring and Discounting Agreements

We have factoring agreements in Europe and Singapore with financial institutions to sell 100% and 90% of certain accounts receivable, respectively, on a non-recourse basis. We de-recognized $196 million and $320 million of accounts receivable under these factoring agreements for the six months ended June 30, 2023 and year ended December 31, 2022, respectively, and collected $189 million and $325 million of accounts receivable sold under these factoring agreements during the same periods.

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Covenants

We are in compliance with the covenants in our material financing arrangements as of June 30, 2023.

See Note 7 - Debt in the accompanying unaudited interim consolidated financial statements for further information.

Guarantor Financial Information

We have outstanding senior unsecured notes, issued in public offerings registered under the Securities Act of 1933, as amended (collectively, the "Senior Notes"). The Senior Notes were issued by Celanese U.S. ("Issuer") and are guaranteed by Celanese Corporation ("Parent Guarantor") and the Subsidiary Guarantors (collectively the "Obligor Group"). See Note 7 - Debt in the accompanying unaudited interim consolidated financial statements for further information. The Issuer and Subsidiary Guarantors are 100% owned subsidiaries of the Parent Guarantor. The Subsidiary Guarantors are listed in Exhibit 22.1 to this Quarterly Report.

The Parent Guarantor and the Subsidiary Guarantors have guaranteed the Senior Notes on a full and unconditional, joint and several, senior unsecured basis. The guarantees are subject to certain customary release provisions, including that a Subsidiary Guarantor will be released from its respective guarantee in specified circumstances, including (i) the sale or transfer of all of its assets or capital stock; (ii) its merger or consolidation with, or transfer of all or substantially all of its assets to, another person; or (iii) its ceasing to be a majority-owned subsidiary of the Issuer in connection with any sale of its capital stock or other transaction. Additionally, a Subsidiary Guarantor will be released from its guarantee of the Senior Notes at such time that it ceases to guarantee the Issuer's obligations under the U.S. Credit Agreements (subject to the satisfaction of customary document delivery requirements). The obligations of the Subsidiary Guarantors under their guarantees are limited as necessary to prevent such guarantees from constituting a fraudulent conveyance or fraudulent transfer under applicable law.

The Parent Guarantor and the Issuer are holding companies that conduct substantially all of their operations through their subsidiaries, which own substantially all of our consolidated assets. The Parent Guarantor has no material assets other than the stock of its immediate 100% owned subsidiary, the Issuer. The principal source of cash to pay the Parent Guarantor's and the Issuer's obligations, including obligations under the Senior Notes and the guarantee of the Issuer's obligations under the U.S. Credit Agreements, is the cash that our subsidiaries generate from their operations. Each of the Subsidiary Guarantors and our non-guarantor subsidiaries is a distinct legal entity and, under certain circumstances, applicable country or state laws, regulatory limitations and terms of other debt instruments may limit our subsidiaries' ability to distribute cash to the Issuer and the Parent Guarantor.

For cash management purposes, we transfer cash among the Parent Guarantor, Issuer, Subsidiary Guarantors and non-guarantors through intercompany financing arrangements, contributions or declaration of dividends between the respective parent and its subsidiaries. While the non-guarantor subsidiaries do not guarantee the Issuer's obligations under our outstanding debt, the transfer of cash under these activities facilitates the ability of the recipient to make specified third-party payments for principal and interest on the Senior Notes, U.S. Credit Agreements, other outstanding debt, Common Stock dividends and Common Stock repurchases.

The summarized financial information of the Obligor Group is presented below on a combined basis after the elimination of: (i) intercompany transactions among such entities and (ii) equity in earnings from and investments in the non-guarantor subsidiaries. Transactions with, and amounts due to or from, non-guarantor subsidiaries and affiliates are separately disclosed.


			Six Months Ended June 30, 2023
			(In $ millions)
			(unaudited)
Net sales to third parties			944
Net sales to non-guarantor subsidiaries			559
Total net sales			1,503
Gross profit			318
Earnings (loss) from continuing operations			1,187
Net earnings (loss)			1,185
Net earnings (loss) attributable to the Obligor Group			1,185

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	As of June 30, 2023	As of December 31, 2022
	(In $ millions)
	(unaudited)
Receivables from non-guarantor subsidiaries	643	754
Other current assets	1,675	1,588
Total current assets	2,318	2,342
Goodwill	528	567
Other noncurrent assets	2,745	2,718
Total noncurrent assets	3,273	3,285
Current liabilities due to non-guarantor subsidiaries	1,768	2,100
Current liabilities due to affiliates	1	2
Other current liabilities	2,030	2,201
Total current liabilities	3,799	4,303
Noncurrent liabilities due to non-guarantor subsidiaries	3,383	3,400
Other noncurrent liabilities	13,404	13,842
Total noncurrent liabilities	16,787	17,242

Share Capital

~~On July 17, 2017, our Board~~We declared a quarterly cash dividend of ~~Directors approved a $1.5 billion increase in~~$0.70 per share on our Common Stock ~~repurchase authorization.~~on July 19, 2023, amounting to $76 million.

There have been no material changes to our share capital described in our ~~2016~~2022 Form 10-K other than those disclosed above and in Note 1310 - ~~Stockholders'~~Shareholders' Equity in the accompanying unaudited interim consolidated financial statements.

Contractual Obligations

We have not entered into any material off-balance sheet arrangements.

Except as otherwise described in this report, there have been no material revisions outside the ordinary course of business to our contractual obligations as described in our ~~2016~~2022 Form 10-K.

~~Off-Balance Sheet Arrangements~~Tax Return Audits

Our tax returns are under joint audit for the years 2013 through 2015 by the United States, Netherlands and Germany (the "Authorities"). In addition, our income tax returns in Mexico are under audit for the year 2018, and in Canada for the years 2016 through 2018. As of June 30, 2023, we believe that an adequate provision for income taxes has been made for all open tax years related to the examinations by government authorities. We are in ongoing discussions regarding the audit findings with the Canadian authorities and do not expect a material impact to income tax expense. However, the outcome of tax audits cannot be predicted with certainty. If any issues raised by the government authorities are resolved in a manner inconsistent with our expectations or we are unsuccessful in defending its positions, we could be required to adjust our 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. See Note 11 - Income Taxes in the accompanying unaudited interim consolidated financial statements for further information.

Business Environment

We continued to experience destocking in addition to volatile underlying demand conditions across several end-markets. We continue to closely monitor the impact of, and responses to, geopolitical effects on demand conditions and the supply chain. Demand conditions and moderating raw materials costs resulted in elevated industry competitive dynamics and pricing pressure across many end-markets. Average prices of raw materials and energy feedstocks, particularly natural gas, which is a significant input for our manufacturing operations, have ~~not entered~~continued to moderate. We expect demand and destocking challenges to persist, to put pressure on pricing partially offset by improvement in input costs across the year.

Following Russia's invasion of Ukraine, we suspended sales into ~~any material off-balance sheet arrangements.~~

Russia, Belarus and the sanctioned regions of Ukraine. Revenue from these countries and regions constituted less than 0.1% of our consolidated Net sales in fiscal year 2022 and we

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have no manufacturing assets in these countries or regions. We do not currently expect the conflict to result in a material impact on our business or financial results, but the full impact of the conflict and international responses thereto remains uncertain and will depend on future geopolitical and economic developments that are impossible to predict. Potential risks we may face include increased volatility in capital and commodity markets, rapid changes to sanctions, supply chain and transportation disruptions, exacerbation of inflationary conditions, impacts to consumer or business sentiment and an increased risk of cyber security incidents.

Critical Accounting Policies and Estimates

Our unaudited interim consolidated financial statements are based on the selection and application of significant accounting policies. The preparation of unaudited interim consolidated financial statements in conformity with USU.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 unaudited interim consolidated financial statements and the reported amounts of Net sales, expenses and allocated charges during the reporting period. Actual results could differ from those estimates. However, we are not currently aware of any reasonably likely events or circumstances that would result in materially different results.

We describe our significant accounting policies in Note 2 - Summary of Accounting Policies, of the Notes to the Consolidated Financial Statements included in our ~~2016~~2022 Form 10-K. We discuss our critical accounting policies and estimates in MD&A in our ~~2016~~2022 Form 10-K.

Recent Accounting Pronouncements

See Note 2 - Recent Accounting Pronouncements in the accompanying unaudited interim consolidated financial statements included in this Quarterly Report for information regarding recent accounting pronouncements.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Market risk for the Company has not changed materially from the foreign exchange, interest rate and commodity risks disclosed in Item 7A. Quantitative and Qualitative Disclosures about Market Risk in our ~~2016~~2022 Form 10-K. See also Note 1612 - Derivative Financial Instruments in the accompanying unaudited interim consolidated financial statements for further discussion of our market risk management and the related impact on the Company's financial position and results of operations.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended, as of the end of the period covered by this report. Based on that evaluation, as of ~~September~~June 30, ~~2017,~~2023, the Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures are effective.

Changes in Internal Control Over Financial Reporting

~~On May 3, 2017, we acquired the nylon compounding division of Nilit Group ("Nilit"). See~~ ~~Note 3 - Acquisitions, Dispositions and Plant Closures~~ ~~in the accompanying unaudited interim consolidated financial statements for further information.~~

During the period covered by this report, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II — OTHER INFORMATION

Item 1. Legal Proceedings

The Company is involved in ~~a number of~~ legal and regulatory proceedings, lawsuits, claims and ~~claims~~investigations incidental to the normal conduct of its business, relating to such matters as product liability, land disputes, insurance coverage disputes, contracts, employment, antitrust and 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 ~~stockholders,~~shareholders, past waste disposal practices and release of chemicals into the environment. The Company is actively defending those matters where it is named as a defendant. Due to the inherent subjectivity of assessments and unpredictability of outcomes of legal proceedings, the Company's litigation accruals and estimates of possible loss or range of possible loss may not represent the ultimate loss to the Company from legal proceedings. See Note 129 - Environmental and Note 1814 - Commitments and Contingencies in the accompanying unaudited interim consolidated financial statements for a discussion of material environmental matters and material commitments and contingencies related to legal and regulatory proceedings. There have been no significant developments in the "Legal Proceedings" described in our ~~2016~~2022 Form 10-K other than those disclosed in Note 129 - Environmental and Note 1814 - Commitments and Contingencies in the accompanying unaudited interim consolidated financial statements. See Part I - Item 1A. Risk Factors of our ~~2016~~2022 Form 10-K for certain risk factors relating to these legal proceedings.

Item 1A. Risk Factors

~~There have been no material changes~~In addition to the ~~risk factors under~~ information in this Quarterly Report, readers should carefully consider the information in Part I, Item 1A1A. Risk Factors of our ~~2016~~2022 Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

~~Repurchases of our~~We did not repurchase any Common Stock during the three months ended ~~September~~June 30, ~~2017~~ ~~are as follows:~~

Period
Total Number
of Shares
Purchased⁽¹⁾

Average
Price Paid
per Share

Total Number of
Shares Purchased as
Part of Publicly
Announced Program

Approximate Dollar
Value of Shares
Remaining that may be
Purchased Under the Program⁽²⁾
(unaudited)
July 1-31, 2017 352,244
$ 95.54
351,310
$ 1,694,000,000
August 1-31, 2017 1,672,635
$ 97.52
1,672,635
$ 1,531,000,000
September 1-30, 2017 —
$ —
—
$ 1,531,000,000
Total 2,024,879
2,023,945


⁽¹⁾	~~Includes 934 shares for July 2017 related to shares withheld from employees to cover their withholding requirements for personal income taxes related to the vesting of restricted stock units.~~


⁽²⁾	~~Our Board of Directors authorized the repurchase of $3.9 billion of our Common Stock since February 2008.~~

2023. As of June 30, 2023, our Board of Directors had authorized the repurchase of $6.9 billion of our Common Stock since February 2008, with approximately $1.1 billion value of shares remaining that may be purchased under the program. See Note 1310 - ~~Stockholders'~~Shareholders' Equity in the accompanying unaudited interim consolidated financial statements for further information.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

~~None.~~(c) Trading Plans

During the quarter ended June 30, 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.

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Item 6. Exhibits⁽¹⁾


Exhibit Number
			Description

~~Exhibit~~ ~~Number~~
	~~Description~~

2.1†		Transaction Agreement, dated as of ~~as June 18, 2017,~~February 17, 2022, by and among DuPont De Nemours, Inc., DuPont E&I Holding, Inc. and Celanese ~~US Holdings LLC, BCP VII Jade Cayman Aggregator Ltd., BCP VII Swordfish Aggregator L.P., Acetate UTP C.V., and Lower Tier Partnership Netherlands C.V.~~Corporation (incorporated by reference to Exhibit 2.1 to the ~~Quarterly~~Current Report on Form ~~10-Q~~8-K filed with the SEC on ~~July 25, 2017)~~February 18, 2022).

3.1			Second Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q filed with the SEC on October 18, 2016).

3.1(a)			Certificate of Amendment to the Second Amended and Restated Certificate of Incorporation of Celanese Corporation dated as of April 21, 2016 (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed with the SEC on April 22, 2016).

~~3.2~~3.1(b)			~~Fourth~~Certificate of Amendment to the Second Amended and Restated ~~By-laws, amended effective February 8, 2016~~Certificate of Incorporation of Celanese Corporation dated as of September 17, 2018 (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed with the SEC on ~~February 9, 2016)~~September 17, 2018).

31.1*3.1(c)			Certificate of Amendment to the Second Amended and Restated Certificate of Incorporation of Celanese Corporation dated April 18, 2019 (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed with the SEC on April 23, 2019).

3.2			Seventh Amended and Restated By-laws, amended effective November 2, 2022 (incorporated by reference to Exhibit 3.2 to the Quarterly report on Form 10-Q filed with the SEC on November 4, 2022).

10.1‡			Celanese Corporation Amended and Restated 2018 Global Incentive Plan, dated as of April 20, 2023 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8 -K filed with the SEC on April 25, 2023).

10.2*‡			Form of 2023 Time-Based Rest r i c ted Stock Unit Award Agreement (for non-employee directors).

10.3*‡			Settlement Agreement, dated February 13, 2023, between Celanese Corporation and John Fotheringham.

22.1			List of Guarantor Subsidiaries (incorporated by reference to Exhibit 22.1 to the Annual Report on Form 10-K filed with the SEC on February 24, 2023).

31.1*			Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*			Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1*			Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2*			Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS*			Inline XBRL Instance ~~Document.~~Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH*			Inline XBRL Taxonomy Extension Schema Document.

101.CAL*			Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF*			Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB*			Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE*			Inline XBRL Taxonomy Extension Presentation Linkbase Document.


*104			~~Filed herewith.~~			The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 has been formatted in Inline XBRL.


†	~~The schedules to this agreement have been omitted in accordance with Item 601(b)(2) of Regulation S-K. The Company agrees to furnish a copy of any schedule to the SEC upon request.~~

⁽¹⁾

The Company and its subsidiaries have in the past issued, and may in the future issue from time to time, long-term debt. The Company may not file with the applicable report copies of the instruments defining the rights of holders of long-term debt to the extent that the aggregate principal amount of the debt instruments of any one series of such debt instruments for which the instruments have not been filed has not exceeded or will not exceed 10% of the assets of the Company at any pertinent time. The Company hereby agrees to furnish a copy of any such instrument(s) to the SEC upon request.

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* Filed herewith.

‡ Indicates a management contract or compensatory plan or arrangement.

† The Company has omitted certain schedules and similar attachments to such agreements pursuant to Item 601(a)(5) of Regulation S-K. The Company will furnish a copy of such omitted documents to the SEC upon request.

(1)The Company and its subsidiaries have in the past issued, and may in the future issue from time to time, long-term debt. The Company may not file with the applicable report copies of the instruments defining the rights of holders of long-term debt to the extent that the aggregate principal amount of the debt instruments of any one series of such debt instruments for which the instruments have not been filed has not exceeded or will not exceed 10% of the assets of the Company at any pertinent time. The Company hereby agrees to furnish a copy of any such instrument(s) to the SEC upon request.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

CELANESE CORPORATION

~~CELANESE CORPORATION~~

By:

/s/ LORI J. RYERKERK

Lori J. Ryerkerk

~~By:~~

~~/s/ MARK C. ROHR~~

~~Mark C. Rohr~~

~~Chairman~~Chair of the Board of Directors, ~~and~~

Chief Executive Officer

~~Date:~~

~~October 17, 2017~~

and President

~~By:~~

~~/s/ CHRISTOPHER W. JENSEN~~Date:

August 8, 2023

By:

~~Christopher W. Jensen~~ /s/ SCOTT A. RICHARDSON

Scott A. Richardson

Executive Vice President and

Chief Financial Officer

Date:

~~October 17, 2017~~August 8, 2023



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
	(In $ millions, except share and per share data)
Net sales	1,566		1,323		4,547		4,078
Cost of sales	(1,181	)	(968	)	(3,443	)	(2,995	)
Gross profit	385		355		1,104		1,083
Selling, general and administrative expenses	(112	)	(81	)	(291	)	(232	)
Amortization of intangible assets	(5	)	(3	)	(14	)	(7	)
Research and development expenses	(19	)	(20	)	(53	)	(58	)
Other (charges) gains, net	—		(3	)	(58	)	(12	)
Foreign exchange gain (loss), net	4		(1	)	—		1
Gain (loss) on disposition of businesses and assets, net	(1	)	(1	)	(4	)	1
Operating profit (loss)	252		246		684		776
Equity in net earnings (loss) of affiliates	50		41		135		114
Interest expense	(32	)	(28	)	(91	)	(91	)
Refinancing expense	—		(4	)	—		(6	)
Interest income	1		—		2		1
Dividend income - cost investments	24		26		82		82
Other income (expense), net	(6	)	—		(2	)	(2	)
Earnings (loss) from continuing operations before tax	289		281		810		874
Income tax (provision) benefit	(57	)	(15	)	(153	)	(127	)
Earnings (loss) from continuing operations	232		266		657		747
Earnings (loss) from operation of discontinued operations	(5	)	(4	)	(14	)	(3	)
Income tax (provision) benefit from discontinued operations	1		1		2		1
Earnings (loss) from discontinued operations	(4	)	(3	)	(12	)	(2	)
Net earnings (loss)	228		263		645		745
Net (earnings) loss attributable to noncontrolling interests	(2	)	(1	)	(5	)	(5	)
Net earnings (loss) attributable to Celanese Corporation	226		262		640		740
Amounts attributable to Celanese Corporation
Earnings (loss) from continuing operations	230		265		652		742
Earnings (loss) from discontinued operations	(4	)	(3	)	(12	)	(2	)
Net earnings (loss)	226		262		640		740
Earnings (loss) per common share - basic
Continuing operations	1.68		1.84		4.71		5.08
Discontinued operations	(0.03	)	(0.02	)	(0.09	)	(0.01	)
Net earnings (loss) - basic	1.65		1.82		4.62		5.07
Earnings (loss) per common share - diluted
Continuing operations	1.68		1.83		4.69		5.06
Discontinued operations	(0.03	)	(0.02	)	(0.09	)	(0.01	)
Net earnings (loss) - diluted	1.65		1.81		4.60		5.05
Weighted average shares - basic	136,579,077		144,005,098		138,599,330		145,959,821
Weighted average shares - diluted	136,951,923		144,601,465		138,988,321		146,585,560



	Nine Months Ended September 30, 2017
	Shares		Amount
	(In $ millions, except share data)
Series A Common Stock
Balance as of the beginning of the period	140,660,447		—
Stock option exercises	20,151		—
Purchases of treasury stock	(5,436,803	)	—
Stock awards	392,587		—
Balance as of the end of the period	135,636,382		—
Treasury Stock
Balance as of the beginning of the period	26,950,910		(1,531	)
Purchases of treasury stock, including related fees	5,436,803		(500	)
Balance as of the end of the period	32,387,713		(2,031	)
Additional Paid-In Capital
Balance as of the beginning of the period			157
Stock-based compensation, net of tax			13
Stock option exercises, net of tax			1
Balance as of the end of the period			171
Retained Earnings
Balance as of the beginning of the period			4,320
Cumulative effect adjustment from adoption of new accounting standard (Note 1)			(1	)
Net earnings (loss) attributable to Celanese Corporation			640
Series A common stock dividends			(178	)
Balance as of the end of the period			4,781
Accumulated Other Comprehensive Income (Loss), Net
Balance as of the beginning of the period			(358	)
Other comprehensive income (loss), net of tax			152
Balance as of the end of the period			(206	)
Total Celanese Corporation stockholders' equity			2,715
Noncontrolling Interests
Balance as of the beginning of the period			433
Net earnings (loss) attributable to noncontrolling interests			5
(Distributions to) contributions from noncontrolling interests			(18	)
Balance as of the end of the period			420
Total equity			3,135



	Increase	Quarterly Common Stock Cash Dividend	Annual Common Stock Cash Dividend	Effective Date
	(In percentages)	(In $ per share)
April 2016	20	0.36	1.44	May 2016
April 2017	28	0.46	1.84	May 2017



	Nine Months Ended September 30,				Total From February 2008 Through September 30, 2017
	2017		2016		Total From February 2008 Through September 30, 2017
Shares repurchased	5,436,803		4,360,617		39,779,019
Average purchase price per share	$	91.97	$	68.80	$	58.71
Shares repurchased (in $ millions)	$	500	$	300	$	2,335
Aggregate Board of Directors repurchase authorizations during the period (in $ millions)⁽¹⁾	$	1,500	$	—	$	3,866



	Unrealized Gain (Loss) on Marketable Securities (Note 5)	Foreign Currency Translation		Gain (Loss) on Cash Flow Hedges (Note 16)		Pension and Postretirement Benefits (Note 11)		Accumulated Other Comprehensive Income (Loss), Net
	(In $ millions)
As of December 31, 2016	1	(350	)	3		(12	)	(358	)
Other comprehensive income (loss) before reclassifications	1	143		1		5		150
Amounts reclassified from accumulated other comprehensive income (loss)	—	—		(2	)	(1	)	(3	)
Income tax (provision) benefit	—	5		—		—		5
As of September 30, 2017	2	(202	)	2		(8	)	(206	)



	Fair Value Measurement
	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)		Total		Balance Sheet Classification
	(In $ millions)
As of September 30, 2017
Derivatives Designated as Cash Flow Hedges
Commodity swaps	—	2		2		Current Other assets
Commodity swaps	—	1		1		Noncurrent Other assets
Derivatives Not Designated as Hedges
Foreign currency forwards and swaps	—	3		3		Current Other assets
Total assets	—	6		6
Derivatives Designated as Cash Flow Hedges
Foreign currency forwards	—	(9	)	(9	)	Current Other liabilities
Derivatives Not Designated as Hedges
Foreign currency forwards and swaps	—	—		—		Current Other liabilities
Total liabilities	—	(9	)	(9	)
As of December 31, 2016
Derivatives Designated as Cash Flow Hedges
Commodity swaps	—	5		5		Current Other assets
Derivatives Not Designated as Hedges
Foreign currency forwards and swaps	—	5		5		Current Other assets
Total assets	—	10		10
Derivatives Not Designated as Hedges
Foreign currency forwards and swaps	—	(3	)	(3	)	Current Other liabilities
Total liabilities	—	(3	)	(3	)



	Three Months Ended September 30, 2017
	Parent Guarantor	Issuer		Subsidiary Guarantors		Non- Guarantors		Eliminations		Consolidated
	(In $ millions)
Net sales	—	—		527		1,314		(275	)	1,566
Cost of sales	—	—		(405	)	(1,042	)	266		(1,181	)
Gross profit	—	—		122		272		(9	)	385
Selling, general and administrative expenses	—	—		(36	)	(76	)	—		(112	)
Amortization of intangible assets	—	—		(1	)	(4	)	—		(5	)
Research and development expenses	—	—		(9	)	(10	)	—		(19	)
Other (charges) gains, net	—	—		—		—		—		—
Foreign exchange gain (loss), net	—	—		—		4		—		4
Gain (loss) on disposition of businesses and assets, net	—	—		(2	)	1		—		(1	)
Operating profit (loss)	—	—		74		187		(9	)	252
Equity in net earnings (loss) of affiliates	226	233		175		45		(629	)	50
Interest expense	—	(5	)	(28	)	(8	)	9		(32	)
Refinancing expense	—	—		—		—		—		—
Interest income	—	7		1		2		(9	)	1
Dividend income - cost investments	—	—		—		26		(2	)	24
Other income (expense), net	—	(2	)	—		(4	)	—		(6	)
Earnings (loss) from continuing operations before tax	226	233		222		248		(640	)	289
Income tax (provision) benefit	—	(7	)	(68	)	17		1		(57	)
Earnings (loss) from continuing operations	226	226		154		265		(639	)	232
Earnings (loss) from operation of discontinued operations	—	—		—		(5	)	—		(5	)
Income tax (provision) benefit from discontinued operations	—	—		—		1		—		1
Earnings (loss) from discontinued operations	—	—		—		(4	)	—		(4	)
Net earnings (loss)	226	226		154		261		(639	)	228
Net (earnings) loss attributable to noncontrolling interests	—	—		—		(2	)	—		(2	)
Net earnings (loss) attributable to Celanese Corporation	226	226		154		259		(639	)	226



	Nine Months Ended September 30, 2017
	Parent Guarantor	Issuer		Subsidiary Guarantors		Non- Guarantors		Eliminations		Consolidated
	(In $ millions)
Net sales	—	—		1,679		3,713		(845	)	4,547
Cost of sales	—	—		(1,305	)	(2,974	)	836		(3,443	)
Gross profit	—	—		374		739		(9	)	1,104
Selling, general and administrative expenses	—	—		(78	)	(213	)	—		(291	)
Amortization of intangible assets	—	—		(3	)	(11	)	—		(14	)
Research and development expenses	—	—		(23	)	(30	)	—		(53	)
Other (charges) gains, net	—	—		(7	)	(51	)	—		(58	)
Foreign exchange gain (loss), net	—	—		—		—		—		—
Gain (loss) on disposition of businesses and assets, net	—	—		(6	)	2		—		(4	)
Operating profit (loss)	—	—		257		436		(9	)	684
Equity in net earnings (loss) of affiliates	640	640		439		122		(1,706	)	135
Interest expense	—	(17	)	(75	)	(23	)	24		(91	)
Refinancing expense	—	—		—		—		—		—
Interest income	—	19		3		4		(24	)	2
Dividend income - cost investments	—	—		—		85		(3	)	82
Other income (expense), net	—	(3	)	1		—		—		(2	)
Earnings (loss) from continuing operations before tax	640	639		625		624		(1,718	)	810
Income tax (provision) benefit	—	1		(139	)	(16	)	1		(153	)
Earnings (loss) from continuing operations	640	640		486		608		(1,717	)	657
Earnings (loss) from operation of discontinued operations	—	—		—		(14	)	—		(14	)
Income tax (provision) benefit from discontinued operations	—	—		—		2		—		2
Earnings (loss) from discontinued operations	—	—		—		(12	)	—		(12	)
Net earnings (loss)	640	640		486		596		(1,717	)	645
Net (earnings) loss attributable to noncontrolling interests	—	—		—		(5	)	—		(5	)
Net earnings (loss) attributable to Celanese Corporation	640	640		486		591		(1,717	)	640



	Nine Months Ended September 30, 2016
	Parent Guarantor	Issuer		Subsidiary Guarantors		Non- Guarantors		Eliminations		Consolidated
	(In $ millions)
Net sales	—	—		1,663		3,264		(849	)	4,078
Cost of sales	—	—		(1,270	)	(2,580	)	855		(2,995	)
Gross profit	—	—		393		684		6		1,083
Selling, general and administrative expenses	—	—		(41	)	(191	)	—		(232	)
Amortization of intangible assets	—	—		(3	)	(4	)	—		(7	)
Research and development expenses	—	—		(24	)	(34	)	—		(58	)
Other (charges) gains, net	—	—		(1	)	(11	)	—		(12	)
Foreign exchange gain (loss), net	—	—		—		1		—		1
Gain (loss) on disposition of businesses and assets, net	—	—		(6	)	7		—		1
Operating profit (loss)	—	—		318		452		6		776
Equity in net earnings (loss) of affiliates	740	742		472		107		(1,947	)	114
Interest expense	—	(11	)	(71	)	(21	)	12		(91	)
Refinancing expense	—	(4	)	(2	)	—		—		(6	)
Interest income	—	7		2		4		(12	)	1
Dividend income - cost investments	—	—		—		82		—		82
Other income (expense), net	—	(1	)	1		(2	)	—		(2	)
Earnings (loss) from continuing operations before tax	740	733		720		622		(1,941	)	874
Income tax (provision) benefit	—	7		(63	)	(70	)	(1	)	(127	)
Earnings (loss) from continuing operations	740	740		657		552		(1,942	)	747
Earnings (loss) from operation of discontinued operations	—	—		(2	)	(1	)	—		(3	)
Income tax (provision) benefit from discontinued operations	—	—		—		1		—		1
Earnings (loss) from discontinued operations	—	—		(2	)	—		—		(2	)
Net earnings (loss)	740	740		655		552		(1,942	)	745
Net (earnings) loss attributable to noncontrolling interests	—	—		—		(5	)	—		(5	)
Net earnings (loss) attributable to Celanese Corporation	740	740		655		547		(1,942	)	740



Period	Total Number of Shares Purchased⁽¹⁾	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Program	Approximate Dollar Value of Shares Remaining that may be Purchased Under the Program⁽²⁾
	(unaudited)
July 1-31, 2017	352,244	$	95.54	351,310	$	1,694,000,000
August 1-31, 2017	1,672,635	$	97.52	1,672,635	$	1,531,000,000
September 1-30, 2017	—	$	—	—	$	1,531,000,000
Total	2,024,879			2,023,945