UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the quarterly period ended
			September 30, ~~2021~~2022
			Or
☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File 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)			(I.R.S. Employer Identification No.)

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 ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes ☑ No ☐

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 þ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth 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. ☐

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

The number of outstanding shares of the registrant's common stock, $0.0001 par value, as of October ~~15, 2021~~28, 2022 was ~~108,870,848.~~108,428,071.

Table of Contents

CELANESE CORPORATION AND SUBSIDIARIES

Form 10-Q

For the Quarterly Period Ended September 30, ~~2021~~2022

TABLE OF CONTENTS


		Page
	PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements	3
	a) Unaudited Interim Consolidated Statements of Operations for the three and nine months ended September 30, ~~2021~~2022 and ~~2020~~2021	3
	b) Unaudited Interim Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, ~~2021~~2022 and ~~2020~~2021	4
	c) Unaudited Consolidated Balance Sheets as of September 30, ~~2021~~2022 and December 31, ~~2020~~2021	5
	d) Unaudited Interim Consolidated Statements of Equity for the three and nine months ended September 30, ~~2021~~2022 and ~~2020~~2021	6
	e) Unaudited Interim Consolidated Statements of Cash Flows for the nine months ended September 30, ~~2021~~2022 and ~~2020~~2021	8
	f) Notes to the Unaudited Interim Consolidated Financial Statements	9
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	32
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	4851
Item 4.	Controls and Procedures	4952

	PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	5053
Item 1A.	Risk Factors	5053
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	5054
Item 3.	Defaults Upon Senior Securities	5055
Item 4.	Mine Safety Disclosures	5055
Item 5.	Other Information	5055
Item 6.	Exhibits	5156
Signatures		5258

Table of Contents

Item 1. Financial Statements

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS


		Three Months Ended September 30,		Nine Months Ended September 30,			Three Months Ended September 30,		Nine Months Ended September 30,
		2021	2020	2021	2020		2022	2021	2022	2021
		(In $ millions, except share and per share data)					(In $ millions, except share and per share data)
Net sales	Net sales	2,266	1,411	6,262	4,064	Net sales	2,301	2,266	7,325	6,262
Cost of sales	Cost of sales	(1,551)	(1,084)	(4,301)	(3,147)	Cost of sales	(1,755)	(1,551)	(5,329)	(4,301)
Gross profit	Gross profit	715	327	1,961	917	Gross profit	546	715	1,996	1,961
Selling, general and administrative expenses	Selling, general and administrative expenses	(165)	(106)	(463)	(345)	Selling, general and administrative expenses	(184)	(165)	(555)	(463)
Amortization of intangible assets	Amortization of intangible assets	(6)	(6)	(17)	(17)	Amortization of intangible assets	(10)	(6)	(32)	(17)
Research and development expenses	Research and development expenses	(21)	(19)	(63)	(54)	Research and development expenses	(25)	(21)	(75)	(63)
Other (charges) gains, net	Other (charges) gains, net	—	(10)	3	(37)	Other (charges) gains, net	(15)	—	(15)	3
Foreign exchange gain (loss), net	Foreign exchange gain (loss), net	2	(2)	2	(2)	Foreign exchange gain (loss), net	(2)	2	(4)	2
Gain (loss) on disposition of businesses and assets, net	Gain (loss) on disposition of businesses and assets, net	11	—	6	(1)	Gain (loss) on disposition of businesses and assets, net	(2)	11	7	6
Operating profit (loss)	Operating profit (loss)	536	184	1,429	461	Operating profit (loss)	308	536	1,322	1,429
Equity in net earnings (loss) of affiliates	Equity in net earnings (loss) of affiliates	44	25	110	113	Equity in net earnings (loss) of affiliates	73	44	189	110
Non-operating pension and other postretirement employee benefit (expense) income	Non-operating pension and other postretirement employee benefit (expense) income	37	28	113	83	Non-operating pension and other postretirement employee benefit (expense) income	25	37	74	113
Interest expense	Interest expense	(21)	(28)	(70)	(83)	Interest expense	(154)	(21)	(237)	(70)
Refinancing expense	Refinancing expense	(9)	—	(9)	—	Refinancing expense	—	(9)	—	(9)
Interest income	Interest income	2	1	7	4	Interest income	34	2	36	7
Dividend income - equity investments	Dividend income - equity investments	35	29	114	98	Dividend income - equity investments	30	35	103	114
Other income (expense), net	Other income (expense), net	(2)	2	(3)	4	Other income (expense), net	5	(2)	4	(3)
Earnings (loss) from continuing operations before tax	Earnings (loss) from continuing operations before tax	622	241	1,691	680	Earnings (loss) from continuing operations before tax	321	622	1,491	1,691
Income tax (provision) benefit	Income tax (provision) benefit	(102)	(30)	(303)	(130)	Income tax (provision) benefit	(127)	(102)	(351)	(303)
Earnings (loss) from continuing operations	Earnings (loss) from continuing operations	520	211	1,388	550	Earnings (loss) from continuing operations	194	520	1,140	1,388
Earnings (loss) from operation of discontinued operations	Earnings (loss) from operation of discontinued operations	(17)	(2)	(24)	(13)	Earnings (loss) from operation of discontinued operations	—	(17)	(8)	(24)

Income tax (provision) benefit from discontinued operations	Income tax (provision) benefit from discontinued operations	4	—	6	1	Income tax (provision) benefit from discontinued operations	(1)	4	1	6
Earnings (loss) from discontinued operations	Earnings (loss) from discontinued operations	(13)	(2)	(18)	(12)	Earnings (loss) from discontinued operations	(1)	(13)	(7)	(18)
Net earnings (loss)	Net earnings (loss)	507	209	1,370	538	Net earnings (loss)	193	507	1,133	1,370
Net (earnings) loss attributable to noncontrolling interests	Net (earnings) loss attributable to noncontrolling interests	(1)	(2)	(4)	(6)	Net (earnings) loss attributable to noncontrolling interests	(2)	(1)	(6)	(4)
Net earnings (loss) attributable to Celanese Corporation	Net earnings (loss) attributable to Celanese Corporation	506	207	1,366	532	Net earnings (loss) attributable to Celanese Corporation	191	506	1,127	1,366
Amounts attributable to Celanese Corporation	Amounts attributable to Celanese Corporation					Amounts attributable to Celanese Corporation
Earnings (loss) from continuing operations	Earnings (loss) from continuing operations	519	209	1,384	544	Earnings (loss) from continuing operations	192	519	1,134	1,384
Earnings (loss) from discontinued operations	Earnings (loss) from discontinued operations	(13)	(2)	(18)	(12)	Earnings (loss) from discontinued operations	(1)	(13)	(7)	(18)
Net earnings (loss)	Net earnings (loss)	506	207	1,366	532	Net earnings (loss)	191	506	1,127	1,366
Earnings (loss) per common share - basic	Earnings (loss) per common share - basic					Earnings (loss) per common share - basic
Continuing operations	Continuing operations	4.70	1.77	12.35	4.59	Continuing operations	1.77	4.70	10.47	12.35
Discontinued operations	Discontinued operations	(0.12)	(0.02)	(0.16)	(0.10)	Discontinued operations	(0.01)	(0.12)	(0.07)	(0.16)
Net earnings (loss) - basic	Net earnings (loss) - basic	4.58	1.75	12.19	4.49	Net earnings (loss) - basic	1.76	4.58	10.40	12.19
Earnings (loss) per common share - diluted	Earnings (loss) per common share - diluted					Earnings (loss) per common share - diluted
Continuing operations	Continuing operations	4.67	1.76	12.28	4.57	Continuing operations	1.76	4.67	10.39	12.28
Discontinued operations	Discontinued operations	(0.11)	(0.01)	(0.16)	(0.10)	Discontinued operations	(0.01)	(0.11)	(0.07)	(0.16)
Net earnings (loss) - diluted	Net earnings (loss) - diluted	4.56	1.75	12.12	4.47	Net earnings (loss) - diluted	1.75	4.56	10.32	12.12
Weighted average shares - basic	Weighted average shares - basic	110,532,051	118,045,476	112,101,651	118,543,853	Weighted average shares - basic	108,428,982	110,532,051	108,336,574	112,101,651
Weighted average shares - diluted	Weighted average shares - diluted	111,044,558	118,564,820	112,699,297	119,119,203	Weighted average shares - diluted	109,065,970	111,044,558	109,158,832	112,699,297

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 September 30,		Nine Months Ended September 30,			Three Months Ended September 30,		Nine Months Ended September 30,
		2021	2020	2021	2020		2022	2021	2022	2021
		(In $ millions)					(In $ millions)
Net earnings (loss)	Net earnings (loss)	507	209	1,370	538	Net earnings (loss)	193	507	1,133	1,370
Other comprehensive income (loss), net of tax	Other comprehensive income (loss), net of tax					Other comprehensive income (loss), net of tax

Foreign currency translation gain (loss)	Foreign currency translation gain (loss)	(15)	(3)	(12)	(11)	Foreign currency translation gain (loss)	(49)	(15)	(201)	(12)
Gain (loss) on cash flow hedges	Gain (loss) on cash flow hedges	(15)	5	16	(33)	Gain (loss) on cash flow hedges	(11)	(15)	30	16
Pension and postretirement benefits	Pension and postretirement benefits	—	—	(4)	—	Pension and postretirement benefits	—	—	2	(4)
Total other comprehensive income (loss), net of tax	Total other comprehensive income (loss), net of tax	(30)	2	—	(44)	Total other comprehensive income (loss), net of tax	(60)	(30)	(169)	—
Total comprehensive income (loss), net of tax	Total comprehensive income (loss), net of tax	477	211	1,370	494	Total comprehensive income (loss), net of tax	133	477	964	1,370
Comprehensive (income) loss attributable to noncontrolling interests	Comprehensive (income) loss attributable to noncontrolling interests	(1)	(2)	(4)	(6)	Comprehensive (income) loss attributable to noncontrolling interests	(2)	(1)	(6)	(4)
Comprehensive income (loss) attributable to Celanese Corporation	Comprehensive income (loss) attributable to Celanese Corporation	476	209	1,366	488	Comprehensive income (loss) attributable to Celanese Corporation	131	476	958	1,366

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, 2021	As of December 31, 2020		As of September 30, 2022	As of December 31, 2021
		(In $ millions, except share data)			(In $ millions, except share data)
ASSETS	ASSETS			ASSETS
Current Assets	Current Assets			Current Assets
Cash and cash equivalents	Cash and cash equivalents	1,340	955	Cash and cash equivalents	9,671	536
Trade receivables - third party and affiliates	Trade receivables - third party and affiliates	1,172	792	Trade receivables - third party and affiliates	1,120	1,161
Non-trade receivables, net	Non-trade receivables, net	566	450	Non-trade receivables, net	492	506
Inventories	Inventories	1,159	978	Inventories	1,723	1,524

Marketable securities		28	533

Other assets	Other assets	90	55	Other assets	186	80
Total current assets	Total current assets	4,355	3,763	Total current assets	13,192	3,807
Investments in affiliates	Investments in affiliates	842	820	Investments in affiliates	954	823
Property, plant and equipment (net of accumulated depreciation - 2021: $3,424; 2020: $3,279)		3,924	3,939
Property, plant and equipment (net of accumulated depreciation - 2022: $3,475; 2021: $3,484)				Property, plant and equipment (net of accumulated depreciation - 2022: $3,475; 2021: $3,484)	4,089	4,193
Operating lease right-of-use assets	Operating lease right-of-use assets	231	232	Operating lease right-of-use assets	246	236
Deferred income taxes	Deferred income taxes	254	259	Deferred income taxes	222	248
Other assets	Other assets	543	411	Other assets	695	521
Goodwill	Goodwill	1,131	1,166	Goodwill	1,294	1,412
Intangible assets, net	Intangible assets, net	303	319	Intangible assets, net	645	735
Total assets	Total assets	11,583	10,909	Total assets	21,337	11,975
LIABILITIES AND EQUITY	LIABILITIES AND EQUITY			LIABILITIES AND EQUITY
Current Liabilities	Current Liabilities			Current Liabilities
Short-term borrowings and current installments of long-term debt - third party and affiliates	Short-term borrowings and current installments of long-term debt - third party and affiliates	103	496	Short-term borrowings and current installments of long-term debt - third party and affiliates	977	791
Trade payables - third party and affiliates	Trade payables - third party and affiliates	1,042	797	Trade payables - third party and affiliates	1,128	1,160
Other liabilities	Other liabilities	529	680	Other liabilities	555	473

Income taxes payable	Income taxes payable	138	—	Income taxes payable	128	81
Total current liabilities	Total current liabilities	1,812	1,973	Total current liabilities	2,788	2,505
Long-term debt, net of unamortized deferred financing costs	Long-term debt, net of unamortized deferred financing costs	3,724	3,227	Long-term debt, net of unamortized deferred financing costs	11,360	3,176
Deferred income taxes	Deferred income taxes	537	509	Deferred income taxes	640	555
Uncertain tax positions	Uncertain tax positions	272	240	Uncertain tax positions	314	280
Benefit obligations	Benefit obligations	592	643	Benefit obligations	489	558
Operating lease liabilities	Operating lease liabilities	197	208	Operating lease liabilities	205	200
Other liabilities	Other liabilities	178	214	Other liabilities	247	164
Commitments and Contingencies	Commitments and Contingencies	0	0	Commitments and Contingencies
Stockholders' Equity	Stockholders' Equity			Stockholders' Equity
Preferred stock, $0.01 par value, 100,000,000 shares authorized (2021 and 2020: 0 issued and outstanding)		—	—
Common stock, $0.0001 par value, 400,000,000 shares authorized (2021: 169,720,379 issued and 109,180,323 outstanding; 2020: 169,402,979 issued and 114,168,464 outstanding)		—	—
Preferred stock, $0.01 par value, 100,000,000 shares authorized (2022 and 2021: 0 issued and outstanding)				Preferred stock, $0.01 par value, 100,000,000 shares authorized (2022 and 2021: 0 issued and outstanding)	—	—
Common stock, $0.0001 par value, 400,000,000 shares authorized (2022: 170,090,785 issued and 108,386,739 outstanding; 2021: 169,760,024 issued and 108,023,735 outstanding)				Common stock, $0.0001 par value, 400,000,000 shares authorized (2022: 170,090,785 issued and 108,386,739 outstanding; 2021: 169,760,024 issued and 108,023,735 outstanding)	—	—

Treasury stock, at cost (2021: 60,540,056 shares; 2020: 55,234,515 shares)		(5,293)	(4,494)
Treasury stock, at cost (2022: 61,704,046 shares; 2021: 61,736,289 shares)				Treasury stock, at cost (2022: 61,704,046 shares; 2021: 61,736,289 shares)	(5,492)	(5,492)
Additional paid-in capital	Additional paid-in capital	313	257	Additional paid-in capital	356	333
Retained earnings	Retained earnings	9,227	8,091	Retained earnings	10,584	9,677
Accumulated other comprehensive income (loss), net	Accumulated other comprehensive income (loss), net	(328)	(328)	Accumulated other comprehensive income (loss), net	(498)	(329)
Total Celanese Corporation stockholders' equity	Total Celanese Corporation stockholders' equity	3,919	3,526	Total Celanese Corporation stockholders' equity	4,950	4,189
Noncontrolling interests	Noncontrolling interests	352	369	Noncontrolling interests	344	348
Total equity	Total equity	4,271	3,895	Total equity	5,294	4,537
Total liabilities and equity	Total liabilities and equity	11,583	10,909	Total liabilities and equity	21,337	11,975

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

Table of Contents

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF EQUITY


		Three Months Ended September 30,					Three Months Ended September 30,
		2021		2020			2022		2021
		Shares	Amount	Shares	Amount		Shares	Amount	Shares	Amount
		(In $ millions, except share data)					(In $ millions, except share data)

Common Stock	Common Stock					Common Stock
Balance as of the beginning of the period	Balance as of the beginning of the period	111,115,442	—	118,288,296	—	Balance as of the beginning of the period	108,346,035	—	111,115,442	—

Purchases of treasury stock	Purchases of treasury stock	(1,938,179)	—	(1,060,890)	—	Purchases of treasury stock	—	—	(1,938,179)	—
Stock awards	Stock awards	3,060	—	2,383	—	Stock awards	40,704	—	3,060	—
Balance as of the end of the period	Balance as of the end of the period	109,180,323	—	117,229,789	—	Balance as of the end of the period	108,386,739	—	109,180,323	—
Treasury Stock	Treasury Stock					Treasury Stock
Balance as of the beginning of the period	Balance as of the beginning of the period	58,601,877	(4,993)	51,083,026	(3,995)	Balance as of the beginning of the period	61,704,046	(5,492)	58,601,877	(4,993)
Purchases of treasury stock, including related fees	Purchases of treasury stock, including related fees	1,938,179	(300)	1,060,890	(111)	Purchases of treasury stock, including related fees	—	—	1,938,179	(300)

Balance as of the end of the period	Balance as of the end of the period	60,540,056	(5,293)	52,143,916	(4,106)	Balance as of the end of the period	61,704,046	(5,492)	60,540,056	(5,293)
Additional Paid-In Capital	Additional Paid-In Capital					Additional Paid-In Capital
Balance as of the beginning of the period	Balance as of the beginning of the period		292		252	Balance as of the beginning of the period		344		292
Stock-based compensation, net of tax	Stock-based compensation, net of tax		21		(4)	Stock-based compensation, net of tax		12		21

Balance as of the end of the period	Balance as of the end of the period		313		248	Balance as of the end of the period		356		313
Retained Earnings	Retained Earnings					Retained Earnings
Balance as of the beginning of the period	Balance as of the beginning of the period		8,797		6,576	Balance as of the beginning of the period		10,466		8,797

Net earnings (loss) attributable to Celanese Corporation	Net earnings (loss) attributable to Celanese Corporation		506		207	Net earnings (loss) attributable to Celanese Corporation		191		506
Common stock dividends	Common stock dividends		(76)		(73)	Common stock dividends		(73)		(76)
Balance as of the end of the period	Balance as of the end of the period		9,227		6,710	Balance as of the end of the period		10,584		9,227
Accumulated Other Comprehensive Income (Loss), Net	Accumulated Other Comprehensive Income (Loss), Net					Accumulated Other Comprehensive Income (Loss), Net
Balance as of the beginning of the period	Balance as of the beginning of the period		(298)		(346)	Balance as of the beginning of the period		(438)		(298)
Other comprehensive income (loss), net of tax	Other comprehensive income (loss), net of tax		(30)		2	Other comprehensive income (loss), net of tax		(60)		(30)
Balance as of the end of the period	Balance as of the end of the period		(328)		(344)	Balance as of the end of the period		(498)		(328)
Total Celanese Corporation stockholders' equity	Total Celanese Corporation stockholders' equity		3,919		2,508	Total Celanese Corporation stockholders' equity		4,950		3,919
Noncontrolling Interests	Noncontrolling Interests					Noncontrolling Interests
Balance as of the beginning of the period	Balance as of the beginning of the period		359		382	Balance as of the beginning of the period		345		359
Net earnings (loss) attributable to noncontrolling interests	Net earnings (loss) attributable to noncontrolling interests		1		2	Net earnings (loss) attributable to noncontrolling interests		2		1
Distributions to noncontrolling interests	Distributions to noncontrolling interests		(8)		(8)	Distributions to noncontrolling interests		(3)		(8)
Balance as of the end of the period	Balance as of the end of the period		352		376	Balance as of the end of the period		344		352
Total equity	Total equity		4,271		2,884	Total equity		5,294		4,271

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

Table of Contents

CELANESE CORPORATION AND SUBSIDIARIES

UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF EQUITY


		Nine Months Ended September 30,					Nine Months Ended September 30,
		2021		2020			2022		2021
		Shares	Amount	Shares	Amount		Shares	Amount	Shares	Amount
		(In $ millions, except share data)					(In $ millions, except share data)

Common Stock	Common Stock					Common Stock
Balance as of the beginning of the period	Balance as of the beginning of the period	114,168,464	—	119,555,207	—	Balance as of the beginning of the period	108,023,735	—	114,168,464	—

Purchases of treasury stock	Purchases of treasury stock	(5,332,727)	—	(2,770,321)	—	Purchases of treasury stock	—	—	(5,332,727)	—
Stock awards	Stock awards	344,586	—	444,903	—	Stock awards	363,004	—	344,586	—
Balance as of the end of the period	Balance as of the end of the period	109,180,323	—	117,229,789	—	Balance as of the end of the period	108,386,739	—	109,180,323	—
Treasury Stock	Treasury Stock					Treasury Stock
Balance as of the beginning of the period	Balance as of the beginning of the period	55,234,515	(4,494)	49,417,965	(3,846)	Balance as of the beginning of the period	61,736,289	(5,492)	55,234,515	(4,494)
Purchases of treasury stock, including related fees	Purchases of treasury stock, including related fees	5,332,727	(800)	2,770,321	(261)	Purchases of treasury stock, including related fees	—	—	5,332,727	(800)
Issuance of treasury stock under stock plans	Issuance of treasury stock under stock plans	(27,186)	1	(44,370)	1	Issuance of treasury stock under stock plans	(32,243)	—	(27,186)	1
Balance as of the end of the period	Balance as of the end of the period	60,540,056	(5,293)	52,143,916	(4,106)	Balance as of the end of the period	61,704,046	(5,492)	60,540,056	(5,293)
Additional Paid-In Capital	Additional Paid-In Capital					Additional Paid-In Capital
Balance as of the beginning of the period	Balance as of the beginning of the period		257		254	Balance as of the beginning of the period		333		257
Stock-based compensation, net of tax	Stock-based compensation, net of tax		56		(6)	Stock-based compensation, net of tax		23		56

Balance as of the end of the period	Balance as of the end of the period		313		248	Balance as of the end of the period		356		313
Retained Earnings	Retained Earnings					Retained Earnings
Balance as of the beginning of the period	Balance as of the beginning of the period		8,091		6,399	Balance as of the beginning of the period		9,677		8,091

Net earnings (loss) attributable to Celanese Corporation	Net earnings (loss) attributable to Celanese Corporation		1,366		532	Net earnings (loss) attributable to Celanese Corporation		1,127		1,366
Common stock dividends	Common stock dividends		(230)		(221)	Common stock dividends		(220)		(230)
Balance as of the end of the period	Balance as of the end of the period		9,227		6,710	Balance as of the end of the period		10,584		9,227
Accumulated Other Comprehensive Income (Loss), Net	Accumulated Other Comprehensive Income (Loss), Net					Accumulated Other Comprehensive Income (Loss), Net
Balance as of the beginning of the period	Balance as of the beginning of the period		(328)		(300)	Balance as of the beginning of the period		(329)		(328)
Other comprehensive income (loss), net of tax	Other comprehensive income (loss), net of tax		—		(44)	Other comprehensive income (loss), net of tax		(169)		—
Balance as of the end of the period	Balance as of the end of the period		(328)		(344)	Balance as of the end of the period		(498)		(328)
Total Celanese Corporation stockholders' equity	Total Celanese Corporation stockholders' equity		3,919		2,508	Total Celanese Corporation stockholders' equity		4,950		3,919
Noncontrolling Interests	Noncontrolling Interests					Noncontrolling Interests
Balance as of the beginning of the period	Balance as of the beginning of the period		369		391	Balance as of the beginning of the period		348		369
Net earnings (loss) attributable to noncontrolling interests	Net earnings (loss) attributable to noncontrolling interests		4		6	Net earnings (loss) attributable to noncontrolling interests		6		4
Distributions to noncontrolling interests	Distributions to noncontrolling interests		(21)		(21)	Distributions to noncontrolling interests		(10)		(21)
Balance as of the end of the period	Balance as of the end of the period		352		376	Balance as of the end of the period		344		352
Total equity	Total equity		4,271		2,884	Total equity		5,294		4,271

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


		Nine Months Ended September 30,			Nine Months Ended September 30,
		2021	2020		2022	2021
		(In $ millions)			(In $ millions)
Operating Activities	Operating Activities			Operating Activities
Net earnings (loss)	Net earnings (loss)	1,370	538	Net earnings (loss)	1,133	1,370
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities	Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities			Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities
Asset impairments	Asset impairments	2	31	Asset impairments	12	2
Depreciation, amortization and accretion	Depreciation, amortization and accretion	278	265	Depreciation, amortization and accretion	318	278
Pension and postretirement net periodic benefit cost	Pension and postretirement net periodic benefit cost	(102)	(74)	Pension and postretirement net periodic benefit cost	(63)	(102)
Pension and postretirement contributions	Pension and postretirement contributions	(36)	(35)	Pension and postretirement contributions	(34)	(36)

Deferred income taxes, net	Deferred income taxes, net	9	(90)	Deferred income taxes, net	14	9
(Gain) loss on disposition of businesses and assets, net	(Gain) loss on disposition of businesses and assets, net	(7)	1	(Gain) loss on disposition of businesses and assets, net	(6)	(7)
Stock-based compensation	Stock-based compensation	76	17	Stock-based compensation	47	76
Undistributed earnings in unconsolidated affiliates	Undistributed earnings in unconsolidated affiliates	(48)	(2)	Undistributed earnings in unconsolidated affiliates	(56)	(48)
Other, net	Other, net	21	15	Other, net	8	21
Operating cash provided by (used in) discontinued operations	Operating cash provided by (used in) discontinued operations	14	7	Operating cash provided by (used in) discontinued operations	(25)	14
Changes in operating assets and liabilities	Changes in operating assets and liabilities			Changes in operating assets and liabilities
Trade receivables - third party and affiliates, net	Trade receivables - third party and affiliates, net	(402)	196	Trade receivables - third party and affiliates, net	(61)	(402)
Inventories	Inventories	(207)	78	Inventories	(321)	(207)
Other assets	Other assets	(150)	68	Other assets	26	(150)
Trade payables - third party and affiliates	Trade payables - third party and affiliates	259	(57)	Trade payables - third party and affiliates	97	259
Other liabilities	Other liabilities	96	111	Other liabilities	189	96
Net cash provided by (used in) operating activities	Net cash provided by (used in) operating activities	1,173	1,069	Net cash provided by (used in) operating activities	1,278	1,173
Investing Activities	Investing Activities			Investing Activities
Capital expenditures on property, plant and equipment	Capital expenditures on property, plant and equipment	(304)	(279)	Capital expenditures on property, plant and equipment	(400)	(304)
Acquisitions, net of cash acquired	Acquisitions, net of cash acquired	(15)	(100)	Acquisitions, net of cash acquired	(14)	(15)
Proceeds from sale of businesses and assets, net	Proceeds from sale of businesses and assets, net	22	17	Proceeds from sale of businesses and assets, net	16	22
Proceeds from sale of marketable securities	Proceeds from sale of marketable securities	500	—	Proceeds from sale of marketable securities	—	500
Other, net	Other, net	(36)	(25)	Other, net	(30)	(36)
Net cash provided by (used in) investing activities	Net cash provided by (used in) investing activities	167	(387)	Net cash provided by (used in) investing activities	(428)	167
Financing Activities	Financing Activities			Financing Activities
Net change in short-term borrowings with maturities of 3 months or less	Net change in short-term borrowings with maturities of 3 months or less	17	170	Net change in short-term borrowings with maturities of 3 months or less	(249)	17
Proceeds from short-term borrowings		—	306

Repayments of short-term borrowings	Repayments of short-term borrowings	(6)	(452)	Repayments of short-term borrowings	—	(6)
Proceeds from long-term debt	Proceeds from long-term debt	991	—	Proceeds from long-term debt	9,019	991
Repayments of long-term debt	Repayments of long-term debt	(778)	(23)	Repayments of long-term debt	(21)	(778)
Purchases of treasury stock, including related fees	Purchases of treasury stock, including related fees	(803)	(272)	Purchases of treasury stock, including related fees	(17)	(803)

Common stock dividends	Common stock dividends	(230)	(221)	Common stock dividends	(220)	(230)
Distributions to noncontrolling interests	Distributions to noncontrolling interests	(21)	(21)	Distributions to noncontrolling interests	(10)	(21)
Settlement of forward-starting interest rate swaps	Settlement of forward-starting interest rate swaps	(72)	—	Settlement of forward-starting interest rate swaps	—	(72)
Issuance cost of bridge facility				Issuance cost of bridge facility	(63)	—
Other, net	Other, net	(41)	(25)	Other, net	(93)	(41)
Net cash provided by (used in) financing activities	Net cash provided by (used in) financing activities	(943)	(538)	Net cash provided by (used in) financing activities	8,346	(943)
Exchange rate effects on cash and cash equivalents	Exchange rate effects on cash and cash equivalents	(12)	8	Exchange rate effects on cash and cash equivalents	(61)	(12)
Net increase (decrease) in cash and cash equivalents	Net increase (decrease) in cash and cash equivalents	385	152	Net increase (decrease) in cash and cash equivalents	9,135	385
Cash and cash equivalents as of beginning of period	Cash and cash equivalents as of beginning of period	955	463	Cash and cash equivalents as of beginning of period	536	955
Cash and cash equivalents as of end of period	Cash and cash equivalents as of end of period	1,340	615	Cash and cash equivalents as of end of period	9,671	1,340

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

Table of Contents

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 chemical and specialty materials company. The Company produces high performance engineered polymers that are used in a variety of high-value applications, as well as acetyl products, which are intermediate chemicals, for nearly all major industries. The Company also engineers and manufactures a wide variety of products essential to everyday living. The Company's broad product portfolio serves a diverse set of end-use applications including automotive, chemical additives, construction, consumer and industrial adhesives, consumer and medical, energy storage, filtration, food and 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 U.S." refers to the Company's subsidiary, Celanese ~~U.S.~~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 months ended September 30, ~~2021~~2022 and ~~2020~~2021 contained in this Quarterly Report were prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for all periods presented and include the accounts of the Company, its majority owned subsidiaries over which the Company exercises control and, when applicable, variable interest entities in which the Company is the primary beneficiary. The 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 U.S. GAAP. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.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, ~~2020,~~2021, filed on February ~~11, 2021~~10, 2022 with the SEC as part of the Company's Annual Report on Form 10-K.

Operating results for the three and nine months ended September 30, ~~2021~~2022 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' interests are shown as noncontrolling interests.

Estimates and Assumptions

The preparation of unaudited interim consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the 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

Table of Contents

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

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 or Other Significant Matters~~

~~In March 2020, the FASB issued ASU 2020-04,~~ ~~Facilitation of the Effects of Reference Rate Reform on Financial Reporting~~.

The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The guidance applies only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform.

~~March 12, 2020 through December 31, 2022.~~

~~The Company has completed its assessment, and the adoption of the new guidance did not have a material impact to the Company.~~

~~In December 2019, the FASB issued ASU 2019-12,~~ ~~Simplifying the Accounting for Income Taxes~~.

The new guidance simplifies the accounting for income taxes by removing certain exceptions to the general principles in FASB Accounting Standards Codification Topic 740, Income Taxes ("Topic 740"). The guidance also clarifies and amends existing guidance under Topic 740.

~~January 1, 2021.~~

~~The Company adopted the new guidance effective January~~1,~~2021. The adoption of the new guidance did not have a material impact to the Company.~~

which are expected to materially impact the Company's financial position, operating results or financial disclosures.

3. Acquisitions, Dispositions and Plant Closures

~~Acquisition~~Acquisitions

~~On June 30,~~In December 2021, the Company ~~signed a definitive agreement to acquire~~acquired the Santoprene™ thermoplastic vulcanizates ("TPV") elastomers business of Exxon Mobil Corporation ("Santoprene") for a purchase price of $1.15 billion in an all-cash transaction. The Company ~~will acquire~~acquired the Santoprene™, Dytron™ and Geolast™ trademarks and product portfolios, customer and supplier contracts and agreements, both production facilities producing ~~Santoprene,~~TPV, the TPV intellectual property portfolio with associated technical and R&D assets and employees of the TPV elastomer business. The acquisition of Santoprene substantially strengthens the Company's existing elastomers portfolio, allowing the Company to bring a wider range of functionalized solutions into targeted growth areas including future mobility, medical and sustainability. The acquisition was accounted for as a business combination and the acquired operations are included in the Engineered Materials segment. The Company allocated the purchase price of the acquisition to identifiable assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The purchase price allocation was based upon preliminary information 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 deferred taxes. The final fair value of the net assets acquired may result in adjustments to these assets and liabilities, including goodwill. During the measurement period, there were no adjustments that materially impacted the Company's goodwill initially recorded.

On February 17, 2022, the Company signed a definitive agreement to acquire a majority of the Mobility & Materials business of DuPont de Nemours, Inc. (the "M&M Acquisition") for a purchase price of $11.0 billion, subject to certain adjustments, in an all-cash transaction. The Company will acquire a global production network of 29 facilities, including compounding and polymerization, customer and supplier contracts and agreements, an intellectual property portfolio including approximately 850 patents with associated technical and R&D assets, and expects to acquire approximately 5,000 employees across the manufacturing, technical, and commercial organizations. The acquired operations will be included in the Engineered Materials segment. The Company ~~expects~~closed on the ~~acquisition~~M&M Acquisition on November 1, 2022. See Note 19 for further information.

In connection with the planned M&M Acquisition, also on February 17, 2022, the Company entered into a bridge facility commitment letter with Bank of America, N.A. ("Bank of America") pursuant to ~~close in the fourth quarter~~which Bank of ~~2021,~~America has committed to provide, subject to ~~regulatory approvals, carve-out preparations~~the terms and ~~other customary closing conditions.~~conditions set forth therein, a 364-day $11.0 billion senior unsecured bridge term loan facility (the "Bridge Facility"). Subsequently, commitments in respect of the Bridge Facility were syndicated to additional financial institutions as contemplated thereby.

~~Plant Closures~~On March 18, 2022, Celanese, Celanese U.S. and certain subsidiaries entered into a term loan credit agreement (the "March 2022 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 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. On September 16, 2022, Celanese, Celanese U.S. and certain subsidiaries entered into an additional term loan credit agreement (the "September 2022 Term Loan Credit Agreement" and, together with the March 2022 Term Loan Credit Agreement, the "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 (the term loans represented by the Term Loan Credit Agreements collectively, the "Term Loan Facility").

~~• European Compounding Center~~Amounts outstanding under the 364-day tranche of ~~Excellence~~

~~In July 2020,~~ the ~~Company announced that it is establishing~~Term Loan Facility will accrue interest at a ~~European Compounding Center~~rate equal to Secured Overnight Financing Rate with an interest period of ~~Excellence at its Forli, Italy facility, which includes~~one or three months ("Term SOFR") plus a margin of 1.00% to 2.00% per annum, or the ~~intended consolidation~~base rate plus a margin of ~~its compounding operations~~0.00% to 1.00%, in ~~Kaiserslautern, Germany; Wehr, Germany; and Ferrara Marconi, Italy. These operations are included in~~each case, based on the Company's ~~Engineered Materials segment. The Company expects to complete~~senior unsecured debt rating. Amounts outstanding under the ~~consolidation~~5-year tranche of the ~~compounding operations by~~Term Loan Facility and 3-year tranche of the ~~end~~Term Loan Facility will accrue interest at a rate equal to Term SOFR plus a margin of ~~2022.~~1.125% to 2.125% per annum, or the base rate plus a margin of 0.125% to 1.125%, in each case, based on the Company's senior unsecured debt rating.

The Term Loan Credit Agreements contain certain covenants described in Note 7.

Table of Contents

The entry into the Term Loan Credit Agreements and offerings of USD- and euro-denominated notes reduced availability under the Bridge Facility to zero and the Company terminated the Bridge Facility. See Note 7 for further information.

The Term Loan Facility, subject to the terms and conditions set forth in the Term Loan Credit Agreements, together with the Acquisition Notes (as defined and described in Note 7) and additional debt financing, will be available to finance the M&M Acquisition, and to pay fees and expenses related thereto. The Term Loan Facility is guaranteed by Celanese and domestic subsidiaries representing substantially all of the Company's U.S. assets and business operations (the "Subsidiary Guarantors").

During the nine months ended September 30, 2022, the Company paid $66 million in fees related to the Bridge Facility commitment, amortizing these fees to interest expense in the nine months ended September 30, 2022.

Korea Engineering Plastics Co. Restructuring

On April 1, 2022, the Company completed the restructuring of Korea Engineering Plastics Co. ("KEPCO"), a joint venture owned 50% by the Company and 50% by Mitsubishi Gas Chemical Company, Inc. KEPCO was first formed in 1987 to manufacture and market polyoxymethylene ("POM") in Asia, with a particular focus on serving domestic demand in South Korea. KEPCO will now focus solely on manufacturing and supplying high quality products to its stockholders, 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's investment in KEPCO of $134 million. The Company's joint venture partner will be making similar payments to KEPCO. The restructuring did not result in a change in ownership percentage of KEPCO, nor a change in control, and KEPCO will continue to be accounted for as an equity method investment.

Plant Closures

• Silao, Mexico

In September 2022, the Company announced that it will cease manufacturing operations at the engineered materials compounding facility in Silao, Mexico by the end of 2022, with decommissioning taking place in 2023.

The exit and shutdown costs related to ~~the Forli, Italy consolidation were~~this closure are as follows:


			Nine Months Ended September 30, ~~2021~~2022
			(In $ millions)
Asset impairments(1)			(8)
Restructuring(1)			(3)

Accelerated ~~depreciation~~amortization expense			5 (3)
~~Plant/office closures(1)~~			~~(9)~~


Total			~~(4)~~(14)

(1)Included in Other (charges) gains, net in the unaudited interim consolidated statement of operations (Note 1218).

The Company expects to incur additional exit and shutdown costs related to ~~the Forli, Italy consolidation~~Silao, Mexico of approximately ~~$12~~$13 million through ~~2022.~~2023.

4. Inventories


		As of September 30, 2021	As of December 31, 2020		As of September 30, 2022	As of December 31, 2021
		(In $ millions)			(In $ millions)
Finished goods	Finished goods	736	653	Finished goods	1,115	1,014
Work-in-process	Work-in-process	74	74	Work-in-process	81	75
Raw materials and supplies	Raw materials and supplies	349	251	Raw materials and supplies	527	435
Total	Total	1,159	978	Total	1,723	1,524

Table of Contents

5. Goodwill and Intangible Assets, Net

Goodwill

Engineered
Materials Acetate Tow Acetyl Chain Total
(In $ millions)
As of December 31, 2020 768 149 249 1,166
Acquisitions 4 — 2 6
Exchange rate changes (28) — (13) (41)
As of September 30, 2021(1)
744 149 238 1,131


	Engineered Materials	Acetate Tow	Acetyl Chain	Total
	(In $ millions)
As of December 31, 2021	1,030	149	233	1,412
Acquisitions (Note 3)	(5)	—	—	(5)	(1)
Exchange rate changes	(80)	(2)	(31)	(113)
As of September 30, 2022(2)	945	147	202	1,294

(1)Related to the acquisition of Santoprene.

(2)There were no accumulated impairment losses as of September 30, ~~2021.~~2022.

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, ~~2021~~2022 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.

~~Table of Contents~~

Intangible Assets, Net

Finite-lived intangible assets are as follows:


		Licenses	Customer- Related Intangible Assets	Developed Technology	Covenants Not to Compete and Other	Total		Licenses	Customer- Related Intangible Assets	Developed Technology	Covenants Not to Compete and Other	Total
		(In $ millions)						(In $ millions)
Gross Asset Value	Gross Asset Value						Gross Asset Value
As of December 31, 2020		44	724	45	56	869
Acquisitions		—	8	—	—	8
As of December 31, 2021							As of December 31, 2021	45	996	45	55	1,141
Acquisitions (Note 3)							Acquisitions (Note 3)	—	9	—	—	9	(1)

Accumulated impairment losses							Accumulated impairment losses	—	(4)	—	—	(4)
Exchange rate changes	Exchange rate changes	—	(26)	(1)	—	(27)	Exchange rate changes	(3)	(96)	(2)	(1)	(102)
As of September 30, 2021		44	706	44	56	850
As of September 30, 2022							As of September 30, 2022	42	905	43	54	1,044
Accumulated Amortization	Accumulated Amortization						Accumulated Amortization
As of December 31, 2020		(38)	(555)	(40)	(39)	(672)
As of December 31, 2021							As of December 31, 2021	(41)	(543)	(42)	(39)	(665)
Amortization	Amortization	(1)	(13)	(2)	(1)	(17)	Amortization	—	(29)	(2)	(1)	(32)
Accumulated impairment losses							Accumulated impairment losses	—	2	—	—	2
Exchange rate changes	Exchange rate changes	—	23	1	—	24	Exchange rate changes	4	54	2	1	61
As of September 30, 2021		(39)	(545)	(41)	(40)	(665)
As of September 30, 2022							As of September 30, 2022	(37)	(516)	(42)	(39)	(634)
Net book value	Net book value	5	161	3	16	185	Net book value	5	389	1	15	410

(1)Represents intangible assets related to the acquisition of Santoprene.

Table of Contents

Indefinite-lived intangible assets are as follows:


			Trademarks and Trade Names
			(In $ millions)
As of December 31, ~~2020~~2021			~~122~~259


Exchange rate changes			~~(4)~~(24)
As of September 30, ~~2021~~2022			~~118~~235

The Company assesses the recoverability of the carrying amount of its indefinite-lived intangible assets either qualitatively or quantitatively annually during the third quarter of its fiscal year using June 30 balances or whenever events or changes in circumstances indicate that the carrying amount of the 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 to indefinite-lived intangible assets during the nine months ended September 30, ~~2021~~2022 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.

During the nine months ended September 30, ~~2021,~~2022, the Company did not renew or extend any intangible assets.

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


		(In $ millions)		(In $ millions)
2022		22
2023	2023	20	2023	39
2024	2024	19	2024	39
2025	2025	19	2025	39
2026	2026	18	2026	39
2027			2027	38

~~Table of Contents~~

6. Current Other Liabilities

As of
September 30,
2021 As of
December 31,
2020
(In $ millions)
Asset retirement obligations 12 10
Benefit obligations (Note 9)
27 27
Customer rebates 72 53
Derivatives (Note 14)
9 87
Environmental (Note 10)
14 11
Insurance 6 5
Interest 22 29
Legal (Note 16)
33 107
Operating leases 35 36
Restructuring (Note 12)
8 11
Salaries and benefits 139 121
Sales and use tax/foreign withholding tax payable 110 140
Other 42 43
Total 529 680

~~7. Noncurrent Other Liabilities~~

As of
September 30,
2021 As of
December 31,
2020
(In $ millions)
Asset retirement obligations 13 10
Deferred proceeds 44 47
Deferred revenue (Note 18)
4 4
Derivatives (Note 14)
9 34
Environmental (Note 10)
45 58
Insurance 38 33
Other 25 28
Total 178 214


	As of September 30, 2022	As of December 31, 2021
	(In $ millions)

Benefit obligations (Note 8)	26	26
Customer rebates	61	96
Derivatives (Note 12)	36	5


Interest (Note 7)	115	30
Legal (Note 14)	11	33
Operating leases	43	37
Restructuring (Note 18)	3	7
Salaries and benefits	108	135
Sales and use tax/foreign withholding tax payable	39	27
Other	113	77
Total	555	473

Table of Contents

8.7. Debt


		As of September 30, 2021	As of December 31, 2020		As of September 30, 2022	As of December 31, 2021
		(In $ millions)			(In $ millions)
Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates	Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates			Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates
Current installments of long-term debt	Current installments of long-term debt	28	431	Current installments of long-term debt	962	527
Short-term borrowings, including amounts due to affiliates(1)	Short-term borrowings, including amounts due to affiliates(1)	75	65	Short-term borrowings, including amounts due to affiliates(1)	15	64

Revolving credit facility(2)				Revolving credit facility(2)	—	200

Total	Total	103	496	Total	977	791

(1)The weighted average interest rate was ~~0.2%~~3.0% and ~~0.6%~~0.2% as of September 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively.

As of
September 30,
2021 As of
December 31,
2020
(In $ millions)
Long-Term Debt
Senior unsecured notes due 2021, interest rate of 5.875% — 400
Senior unsecured notes due 2022, interest rate of 4.625% 500 500
Senior unsecured notes due 2023, interest rate of 1.125% 521 919
Senior unsecured notes due 2024, interest rate of 3.500% 499 499
Senior unsecured notes due 2025, interest rate of 1.250% 347 368
Senior unsecured notes due 2026, interest rate of 1.400% 400 —
Senior unsecured notes due 2027, interest rate of 2.125% 576 610
Senior unsecured notes due 2028, interest rate of 0.625% 578 —
Pollution control and industrial revenue bonds due at various dates through 2030, interest rates ranging from 4.05% to 5.00% 166 166
Bank loans due at various dates through 2026(1)
6 8
Obligations under finance leases due at various dates through 2054 179 201
Subtotal 3,772 3,671
Unamortized debt issuance costs(2)
(20) (13)
Current installments of long-term debt (28) (431)
Total 3,724 3,227
(2)The weighted average interest rate was 0.0% and 1.4% as of September 30, 2022 and December 31, 2021, respectively.


	As of September 30, 2022	As of December 31, 2021
	(In $ millions)
Long-Term Debt



Senior unsecured notes due 2022, interest rate of 4.625%	500	500
Senior unsecured notes due 2023, interest rate of 1.125%	438	509
Senior unsecured notes due 2024, interest rate of 3.500%	499	499
Senior unsecured notes due 2024, interest rate of 5.900%	2,000	—
Senior unsecured notes due 2025, interest rate of 1.250%	292	339
Senior unsecured notes due 2025, interest rate of 6.050%	1,750	—
Senior unsecured notes due 2026, interest rate of 1.400%	400	400
Senior unsecured notes due 2026, interest rate of 4.777%	975	—
Senior unsecured notes due 2027, interest rate of 2.125%	485	564
Senior unsecured notes due 2027, interest rate of 6.165%	2,000	—
Senior unsecured notes due 2028, interest rate of 0.625%	487	566
Senior unsecured notes due 2029, interest rate of 5.337%	488	—
Senior unsecured notes due 2029, interest rate of 6.330%	750	—
Senior unsecured notes due 2032, interest rate of 6.379%	1,000	—
Pollution control and industrial revenue bonds due at various dates through 2030, interest rates ranging from 4.05% to 5.00%	164	166

Bank loans due at various dates through 2026(1)	4	6
Obligations under finance leases due at various dates through 2054	166	173
Subtotal	12,398	3,722
Unamortized debt issuance costs(2)	(76)	(19)
Current installments of long-term debt	(962)	(527)
Total	11,360	3,176

(1)The weighted average interest rate was 1.3% and 1.3% as of September 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively.

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

Senior Credit Facilities

~~The Company has~~On March 18, 2022, Celanese, Celanese U.S. and certain subsidiaries entered into a ~~senior~~new revolving credit agreement (the "New Revolving Credit Agreement" and, together with the Term Loan Credit Agreements, the "Credit ~~Agreement"~~Agreements") consisting of a ~~$1.25~~$1.75 billion senior unsecured revolving credit facility (with a letter of credit sublimit), maturing in ~~2024.~~2027. The proceeds of a $365 million borrowing under the new senior unsecured revolving credit facility were used to repay and terminate the

Table of Contents

Company's existing revolving credit facility. The Credit ~~Agreement is~~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").~~Guarantors. The Subsidiary Guarantors are listed in Exhibit 22.1 to this Quarterly Report.

~~Table~~The Credit Agreements contain certain covenants, including the maintenance of ~~Contents~~

certain financial ratios (subject to adjustment following the M&M Acquisition and certain other qualifying acquisitions, as set forth in the Credit Agreements), events of default and change of control provisions.

The Company's debt balances and amounts available for borrowing under its new senior unsecured revolving credit facility are as follows:


			As of September 30, ~~2021~~2022
			(In $ millions)
Revolving Credit Facility
Borrowings outstanding(1)			—

Available for borrowing(2)			~~1,250~~1,750

(1)The Company borrowed ~~$400~~$365 million under its new senior unsecured revolving credit facility to repay ~~the 5.875% senior~~and terminate its previous unsecured ~~notes due June 15, 2021~~revolving credit facility and repaid ~~$400~~$365 million under its new senior unsecured revolving credit facility during the nine months ended September 30, ~~2021.~~2022. The Company borrowed $165 million and repaid $365 million under its previous unsecured revolving credit facility during the three months ended March 31, 2022.

(2)The margin for borrowings under the senior unsecured revolving credit facility was ~~1.25%~~1.00% to 2.00% above ~~LIBOR or EURIBOR~~certain interbank rates at current Company credit ratings.

On November 1, 2022, the Company borrowed $300 million under its senior unsecured revolving credit facility for general corporate purposes, reducing availability of borrowings under the facility to $1.45 billion.

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 U.S. and are guaranteed on a senior unsecured basis by Celanese and the Subsidiary Guarantors. Celanese U.S. may redeem some or all of each of the Senior Notes, prior to their respective maturity dates, at a redemption price of 100% of the principal amount, plus a "make-whole" premium as specified in the applicable indenture, plus accrued and unpaid interest, if any, to the redemption date.

On ~~August 5, 2021,~~July 14, 2022, Celanese U.S. completed an offering of ~~$400 million in~~$7.5 billion aggregate principal amount of ~~1.400% senior unsecured~~ notes ~~due August 5, 2026 (the "1.400% Notes")~~of various maturities in a public offering registered under the Securities ~~Act. The 1.400%~~Act (the "Acquisition USD Notes"). On July 19, 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, ~~at a price of 99.899%,~~ which ~~is being~~will be amortized to Interest expense in the ~~unaudited interim~~ consolidated statement of operations over the ~~term~~terms of the ~~1.400%~~applicable Acquisition Notes. ~~Net proceeds from the sale~~Fees and expenses of the ~~1.400% Notes were used to repay $396 million of outstanding borrowings under the senior unsecured revolving credit facility and for general corporate purposes.~~

~~On September 10, 2021, Celanese U.S. completed an~~ offering of ~~€500 million in principal amount~~the Acquisition Notes, inclusive of ~~0.625% senior unsecured notes due September 10, 2028 (the "0.625% Notes") in a public offering registered under the Securities Act. The 0.625% Notes~~underwriting discounts, were ~~issued at a discount to par at a price of 99.898%, which is being amortized to Interest expense in the unaudited interim consolidated statements of operations over the term of the 0.625% Notes.~~

On September 13, 2021, Celanese U.S. completed a cash tender offer for €300 million in principal amount of 1.125% senior unsecured notes due September 26, 2023 (the "1.125% Notes") at a purchase price of €1,027.35 per €1,000 of principal amount plus accrued interest, for a total principal and premium payment of $363 million plus accrued interest of $4$65 million. A portion of the proceeds from the issuance of the 0.625% Notes were used to fund the tender offer for €300 million of the 1.125% Notes. As a result of the tender offer, the carrying value of the 1.125% Notes were reduced by $353 million. The Company recognized financing costs of $9 million, which are included in Refinancing expense in the unaudited interim consolidated statement of operations for the nine months ended September 30, 2021.

Table of Contents

Accounts Receivable Purchasing Facility

OnIn June ~~18,~~ 2021, the Company entered into an amendment to the amended and restated receivables purchase agreement (the "Amended Receivables Purchase Agreement") under its U.S. accounts receivable purchasing facility among certain of the Company's subsidiaries, its wholly-owned, "bankruptcy remote" special purpose subsidiary ("SPE") and certain global financial institutions ("Purchasers"). The Amended Receivables Purchase Agreement extends the term of the accounts receivable purchasing facility such that the SPE may sell certain receivables until June 18, 2024. Under the Amended Receivables Purchase Agreement, transfers of U.S. accounts receivable from the SPE are treated as sales and are accounted for as a reduction in accounts receivable because the agreement transfers effective control over and risk related to the U.S. accounts receivable to the SPE. The Company and related subsidiaries have no continuing involvement in the transferred U.S. accounts receivable, other than collection and administrative responsibilities and, once sold, the U.S. accounts receivable are no longer available to satisfy creditors of the Company or the related ~~subsidiaries.~~subsidiaries in the event of bankruptcy. 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 Company de-recognized ~~$812~~$802 million and ~~$595 million~~$1.1 billion of accounts receivable under this agreement for the nine months ended September 30, ~~2021~~2022 and twelve months ended December 31, ~~2020,~~2021, respectively, and collected ~~$812~~$802 million and ~~$476 million~~$1.1 billion of accounts receivable sold under this agreement during the same periods. Unsold U.S. accounts receivable of ~~$116~~$130 million were pledged by the SPE as collateral to the Purchasers as of September 30, ~~2021.~~2022.

Factoring and Discounting Agreements

The Company has factoring agreements in Europe and Singapore with financial institutions to sell 100% and 90% of certain accounts receivable, respectively, on a non-recourse basis. These transactions are treated as sales and are accounted for as reductions in accounts receivable because the agreements transfer effective control over and risk related to the receivables to the buyer. The Company has no continuing involvement in the transferred receivables, other than collection and administrative responsibilities and, once sold, the accounts receivable are no longer available to satisfy creditors in the event of bankruptcy. The Company de-recognized ~~$134~~$228 million and ~~$233~~$230 million of accounts receivable under these factoring agreements for the nine months ended September 30, ~~2021~~2022 and twelve months ended December 31, ~~2020,~~2021, respectively, and collected ~~$133~~$234 million and ~~$237~~$185 million of accounts receivable sold under these factoring agreements during the same periods.

In March 2021, the Company entered into an agreement in Singapore with a financial institution to discount, on a non-recourse basis, documentary credits or other documents recorded as accounts receivable. These transactions are treated as a sale and are accounted for as a reduction in accounts receivable because the agreement transfers effective control over and risk related to the receivables to the buyer. The Company has no continuing involvement in the transferred receivables and, once sold, the accounts receivable are no longer available to satisfy creditors in the event of bankruptcy. The Company de-recognized ~~$57~~$41 million and $70 million of accounts receivable under this agreement for the nine months ended September 30, ~~2021.~~2022 and twelve months ended December 31, 2021, respectively.

Covenants

The Company's material financing arrangements contain customary covenants, including the maintenance of certain financial ratios (subject to adjustment following certain qualifying acquisitions, as set forth in the Credit Agreements), events of default and change of control provisions. 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 of the covenants related to its debt agreements as of September 30, ~~2021.~~2022.

Table of Contents

9.8. Benefit Obligations

The components of net periodic benefit cost are as follows:


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended September 30,				Nine Months Ended September 30,
		2021		2020		2021		2020			2022		2021		2022		2021
		Pension Benefits	Post-retirement Benefits	Pension Benefits	Post-retirement Benefits	Pension Benefits	Post-retirement Benefits	Pension Benefits	Post-retirement Benefits		Pension Benefits	Post-retirement Benefits	Pension Benefits	Post-retirement Benefits	Pension Benefits	Post-retirement Benefits	Pension Benefits	Post-retirement Benefits
		(In $ millions)									(In $ millions)
Service cost	Service cost	3	—	2	1	10	1	8	1	Service cost	3	1	3	—	10	1	10	1
Interest cost	Interest cost	13	1	22	—	40	1	64	1	Interest cost	17	—	13	1	50	1	40	1
Expected return on plan assets	Expected return on plan assets	(51)	—	(50)	—	(154)	—	(149)	—	Expected return on plan assets	(42)	—	(51)	—	(125)	—	(154)	—

Special termination benefit		—	—	—	—	—	—	1	—

Total	Total	(35)	1	(26)	1	(104)	2	(76)	2	Total	(22)	1	(35)	1	(65)	2	(104)	2

Benefit obligation funding is as follows:

As of
September 30,
2021 Total
Expected
2021
(In $ millions)
Cash contributions to defined benefit pension plans 17 23
Benefit payments to nonqualified pension plans 16 20
Benefit payments to other postretirement benefit plans 3 4
Cash contributions to German multiemployer defined benefit pension plans(1)
6 9

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


	As of September 30, 2022	Total Expected 2022
	(In $ millions)
Cash contributions to defined benefit pension plans	17	24
Benefit payments to nonqualified pension plans	15	19
Benefit payments to other postretirement benefit plans	2	4

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

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

~~10.~~


	As of September 30, 2022		As of December 31, 2021
	Pension Benefits	Post-retirement Benefits	Pension Benefits	Post-retirement Benefits
	(In $ millions)
Noncurrent Other assets	288	—	221	—
Current Other liabilities	(22)	(4)	(22)	(4)
Benefit obligations	(439)	(45)	(504)	(47)
Net amount recognized	(173)	(49)	(305)	(51)

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 liabilities are as follows:


		As of September 30, 2021	As of December 31, 2020		As of September 30, 2022	As of December 31, 2021
		(In $ millions)			(In $ millions)
Demerger obligations (Note 16)		24	29
Divestiture obligations (Note 16)		13	15
Demerger obligations (Note 14)				Demerger obligations (Note 14)	20	24
Divestiture obligations (Note 14)				Divestiture obligations (Note 14)	13	14
Active sites	Active sites	8	12	Active sites	11	8
U.S. Superfund sites	U.S. Superfund sites	12	11	U.S. Superfund sites	11	12
Other environmental remediation liabilities	Other environmental remediation liabilities	2	2	Other environmental remediation liabilities	2	2
Total	Total	59	69	Total	57	60

Remediation

Due to its industrial history and through retained contractual and legal obligations, the Company has the obligation to remediate specific areas on its own sites as well as on divested, demerger, orphan or U.S. Superfund sites (as defined below). In addition, as part of the demerger agreement between the Company and Hoechst AG ("Hoechst"), a specified portion of the responsibility for environmental liabilities from a number of Hoechst divestitures was transferred to the Company (Note 1614). 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.

U.S. Superfund Sites

In the U.S., the Company may be subject to substantial claims brought by U.S. federal or state regulatory agencies or private individuals pursuant to statutory authority or common law. In particular, the Company has a potential liability under the U.S. Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, and related state laws (collectively referred to as "Superfund") for investigation and cleanup costs at certain sites. At most of these sites, numerous companies, including the Company, or one of its predecessor companies, have been notified that the U.S. Environmental Protection Agency ("EPA"), state governing bodies or private individuals consider such companies to be potentially responsible parties ("PRP") under Superfund or related laws. The proceedings relating to these sites are in various stages. The cleanup process has not been completed at most sites, and the status of the insurance coverage for some of these proceedings is uncertain. Consequently, the Company cannot accurately determine its ultimate liability for investigation or cleanup costs at these sites.

As events progress at each site for which it has been named a PRP, the Company accrues any probable and reasonably estimable liabilities. In establishing these liabilities, the Company considers the contaminants of concern, the potential impact thereof, the relationship of the contaminants of concern to its current and historic operations, its shipment of waste to a site, its percentage of total waste shipped to the site, the types of wastes involved, the conclusions of any studies, the magnitude of any remedial actions that may be necessary and the number and viability of other PRPs. Often the Company joins with other PRPs to sign joint defense agreements that settle, among PRPs, each party's percentage allocation of costs at the site. Although the ultimate liability may differ from the estimate, the Company routinely reviews the liabilities and revises the estimate, as appropriate, based on the most current information available.

One such site is the Diamond Alkali Superfund Site, which is comprised of a number of sub-sites, including the Lower Passaic River Study Area ("LPRSA"), which is the lower 17-mile stretch of the Passaic River ("Lower Passaic River Site"), and the Newark Bay 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.~~

Table of Contents

In March 2016, the EPA issued its final Record of Decision concerning the remediation of the lower 8.3 miles of the Lower Passaic River Site ("Lower 8.3 Miles"). Pursuant to the EPA's Record of Decision, the Lower 8.3 Miles must be dredged bank to bank and an engineered cap must be installed at an EPA estimated cost of approximately $1.4 billion. In September 2021, the EPA issued a Record of Decision selecting an interim remedial plan for the upper 9 miles of the Lower Passaic River ("Upper 9 Miles"). Pursuant to the EPA's Record of Decision, targeted dredging will be conducted in the Upper 9 Miles to address surface sediments with elevated contamination followed by the installation of an engineered cap at an EPA estimated cost of $441 million.

The Company owned and/or operated facilities in the vicinity of the Lower 8.3 Miles, but has found no evidence that it contributed any of the contaminants of concern to the Passaic River. In June 2018, Occidental Chemical Corporation ("OCC"), the successor to the Diamond Alkali Company, sued a subsidiary of the Company and 119 other parties alleging claims for joint and several damages, contribution and declaratory relief under Section 107 and 113 of Superfund for costs to clean up the LPRSA portion of the Diamond Alkali Superfund Site, Occidental Chemical Corporation v. 21st Century Fox America, Inc., et al, No. 2:18-CV-11273-JLL-JAD (U.S. District Court New Jersey), alleging that each of the defendants owned or operated a facility that contributed contamination to the LPRSA. With respect to the Company, the 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. The Company is vigorously defending these matters and currently ~~believes~~estimates that its ultimate allocable share of the cleanup costs with respect to the Lower Passaic River Site ~~estimated at~~is less than 1%,. In February 2022, the EPA and a subgroup of defendants in the litigation, including Celanese, reached a settlement in principle with respect to the liability of those defendants for the LPRSA, which will not be material to the Company's results of operations, cash flows or financial position. The Company expects the settlement will be memorialized in a Consent Decree lodged with the U.S. District Court for the District of New Jersey prior to the end of the calendar year.

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 are cooperating in ongoing remediation activities. While the Company has ~~initiated settlement discussions with~~not received a ~~subgroup~~notice of ~~defendants, including Celanese.~~violation nor been assessed any fines or penalties to date, the Company recorded a reserve in Other current liabilities based on anticipated clean-up costs and possible penalties to state or federal authorities. The Company does not believe that resolution of this matter will have a material impact on our financial condition or results of operations.

~~11.~~10. Stockholders' Equity

Common Stock

The Company's Board of Directors follows a policy of declaring, subject to legally available funds, a quarterly cash dividend on each share of the Company's Common Stock, 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 senior credit facility 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.

On July 14, 2021, the Company's Board of Directors approved a $1.0 billion increase in its Common Stock repurchase authorization. As of September 30, 2021, the Company had $1.3 billion remaining under the previous authorization. The Company ~~also~~ declared a quarterly cash dividend of ~~$0.68~~$0.70 per share on its Common Stock on October ~~20, 2021,~~19, 2022, amounting to ~~$74~~$76 million. The cash dividend will be paid on November ~~15, 2021~~14, 2022 to holders of record as of ~~November 1, 2021.~~October 31, 2022.

Treasury Stock

The Company's Board of Directors authorizes repurchases of Common Stock from time to time. These authorizations give management discretion in determining the timing and conditions under which shares may be repurchased. This repurchase program does not have an expiration date.

Nine Months Ended
September 30, Total From
February 2008
Through
September 30, 2021
2021 2020
Shares repurchased 5,332,727 2,770,321 68,100,778
Average purchase price per share $ 150.02 $ 94.44 $ 82.27
Shares repurchased (in $ millions) $ 800 $ 261 $ 5,603
Aggregate Board of Directors repurchase authorizations during the period (in $ millions) $ 1,000 $ 500 $ 6,866

Table of Contents


	Nine Months Ended September 30,				Total From February 2008 Through September 30, 2022
	2022		2021
Shares repurchased	—		5,332,727		69,324,429
Average purchase price per share	$	—	$	150.02	$	83.71
Shares repurchased (in $ millions)	$	—	$	800	$	5,803
Aggregate Board of Directors repurchase authorizations during the period (in $ millions)	$	—	$	1,000	$	6,866

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

~~Table of Contents~~

Other Comprehensive Income (Loss), Net


		Three Months Ended September 30,							Three Months Ended September 30,
		2021			2020				2022			2021
		Gross Amount	Income Tax (Provision) Benefit	Net Amount	Gross Amount	Income Tax (Provision) Benefit	Net Amount		Gross Amount	Income Tax (Provision) Benefit	Net Amount	Gross Amount	Income Tax (Provision) Benefit	Net Amount
		(In $ millions)							(In $ millions)

Foreign currency translation gain (loss)	Foreign currency translation gain (loss)	(6)	(9)	(15)	(10)	7	(3)	Foreign currency translation gain (loss)	3	(52)	(49)	(6)	(9)	(15)
Gain (loss) on cash flow hedges	Gain (loss) on cash flow hedges	1	(16)	(15)	6	(1)	5	Gain (loss) on cash flow hedges	(15)	4	(11)	1	(16)	(15)

Total	Total	(5)	(25)	(30)	(4)	6	2	Total	(12)	(48)	(60)	(5)	(25)	(30)


		Nine Months Ended September 30,							Nine Months Ended September 30,
		2021			2020				2022			2021
		Gross Amount	Income Tax (Provision) Benefit	Net Amount	Gross Amount	Income Tax (Provision) Benefit	Net Amount		Gross Amount	Income Tax (Provision) Benefit	Net Amount	Gross Amount	Income Tax (Provision) Benefit	Net Amount
		(In $ millions)							(In $ millions)

Foreign currency translation gain (loss)	Foreign currency translation gain (loss)	3	(15)	(12)	(10)	(1)	(11)	Foreign currency translation gain (loss)	(119)	(82)	(201)	3	(15)	(12)
Gain (loss) on cash flow hedges	Gain (loss) on cash flow hedges	41	(25)	16	(44)	11	(33)	Gain (loss) on cash flow hedges	37	(7)	30	41	(25)	16
Pension and postretirement benefits gain (loss)	Pension and postretirement benefits gain (loss)	(4)	—	(4)	—	—	—	Pension and postretirement benefits gain (loss)	2	—	2	(4)	—	(4)
Total	Total	40	(40)	—	(54)	10	(44)	Total	(80)	(89)	(169)	40	(40)	—

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

Foreign
Currency
Translation Gain (Loss)
Gain (Loss)
on Cash
Flow
Hedges
(Note 14)
Pension
and
Postretirement
Benefits Gain (Loss)
(Note 9)
Accumulated
Other
Comprehensive
Income
(Loss), Net
(In $ millions)
As of December 31, 2020 (260) (56) (12) (328)
Other comprehensive income (loss) before reclassifications 3 43 (4) 42
Amounts reclassified from accumulated other comprehensive income (loss) — (2) — (2)
Income tax (provision) benefit (15) (25) — (40)
As of September 30, 2021 (272) (40) (16) (328)

~~12. Other (Charges) Gains, Net~~

Three Months Ended
September 30, Nine Months Ended
September 30,
2021 2020 2021 2020
(In $ millions)
Restructuring (1) (9) (5) (17)
Asset impairments — (2) (2) (31)
Plant/office closures 1 1 10 6
Commercial disputes — — — 6
European Commission investigation — — — (2)
Other — — — 1
Total — (10) 3 (37)


	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, 2021	(271)	(43)	(15)	(329)
Other comprehensive income (loss) before reclassifications	(119)	54	2	(63)
Amounts reclassified from accumulated other comprehensive income (loss)	—	(17)	—	(17)
Income tax (provision) benefit	(82)	(7)	—	(89)
As of September 30, 2022	(472)	(13)	(13)	(498)

Table of Contents

During the nine months ended September 30, 2021 and 2020, the Company recorded $5 million and $17 million, respectively, of employee termination benefits primarily related to Company-wide business optimization projects.

During the nine months ended September 30, 2020, the Company recorded a $26 million long-lived asset impairment loss related to certain fixed assets used in compounding operations at its facilities in Kaiserslautern, Germany; Wehr, Germany and Ferrara Marconi, Italy (~~Note 3~~). In addition, during the nine months ended September 30, 2020, the Company recorded a $4 million long-lived asset impairment loss related to the closure of its manufacturing operations in Lebanon, Tennessee. The long-lived asset impairment losses were measured at the date of impairment to write-down the related property, plant and equipment and were included in the Company's Engineered Materials segment.

During the nine months ended September 30, 2021, the Company recorded a $9 million gain within plant/office closures related to the termination of its Ferrara Marconi, Italy office lease, which was included in the Company's Engineered Materials segment.

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

Engineered
Materials Acetate Tow Acetyl Chain Other Total
(In $ millions)
Employee Termination Benefits
As of December 31, 2020 8 1 — 2 11
Additions 3 — — 2 5
Cash payments (4) — — (3) (7)
Exchange rate changes (1) — — — (1)
As of September 30, 2021 6 1 — 1 8

~~13.~~11. Income Taxes

Three Months Ended
September 30, Nine Months Ended
September 30,
2021 2020 2021 2020
(In percentages)
Effective income tax rate 16 12 18 19


	Three Months Ended September 30,		Nine Months Ended September 30,
	2022	2021	2022	2021
	(In percentages)
Effective income tax rate	40	16	24	18

The effective income tax rate for the three and nine months ended September 30, ~~2021,~~2022, was higher compared to the same ~~period~~periods in ~~2020,~~2021, primarily due to increases in valuation allowances on U.S. foreign tax credit carryforwards due to revised forecasts of foreign sourced income and expenses during the carryforward period and increases in tax reserves related to ongoing income tax examinations, each during the three months ended September 30, 2022, and increased year to date earnings in high ~~tax jurisdictions. The effective income tax rate~~taxed jurisdictions for the nine months ended September 30, 2021, was lower compared to the same period in 2020, primarily due to non-recurring adjustments in the prior periods to uncertain tax positions due to available attribute carryforwards and the impact of functional currency differences in offshore jurisdictions, partially offset by increased earnings in high tax jurisdictions.

The Company will continue to monitor global legislative and regulatory developments related to COVID-19 and will record the associated tax impacts as discrete events in the periods the guidance is finalized, or when the Company is able to estimate an impact.2022.

In December 2017, the Tax Cuts and Jobs Act (the "TCJA") was enacted and was effective January 1, 2018. The U.S. Treasury has issued various final and proposed regulatory packages supplementing the TCJA provisions since 2018, which the Company does not expect to have a material impact on current or future income tax expense.

In December 2021, the U.S. Treasury and the IRS released final regulations addressing various aspects of the foreign tax credit regime. The regulation was published in the federal register on January 4, 2022, and became effective in the nine months ended September 30, 2022. The final regulations included guidance with respect to the definition of foreign income taxes, the eligibility of foreign taxes for the foreign tax credit, and the allocation and apportionment of interest expense. The impact of the retroactive effect of the interest expense apportionment rules for the 2020 and 2021 tax years was not material to the Company's results of operations.

In August of 2022, the Inflation Reduction Act (the "IRA") was enacted and included a 1% excise tax on share repurchases in excess of $1 million, and a corporate minimum tax of 15% on adjusted book earnings. The corporate minimum tax paid is creditable in future years to the extent that regular tax liability exceeds the minimum tax in any given year. The Company does not expect these provisions will have a material impact to future income tax expense. The IRA also provides various beneficial credits for energy efficient related manufacturing, transportation and fuels, hydrogen/carbon recapture, and renewable energy, which the Company is evaluating in regard to planned projects.

The Company will continue to monitor the expected impacts of any new guidance on the Company's filing positions and will record the impacts as discrete income tax expense adjustments in the period the guidance is finalized or becomes effective.

Due to the TCJA and uncertainty as to future foreign source income, the Company previously recorded a valuation allowance on a substantial portion of its foreign tax credits. The Company is currently evaluating tax planning strategies that would allow utilization of the Company's foreign tax credit carryforwards. Implementation of these strategies in future periods could reduce the level of valuation allowance that is needed, thereby decreasing the Company's effective tax rate.

The Company's tax returns are under joint audit for the years 2013 through 2015 by the United States, ~~the~~ Netherlands and Germany (the "Authorities").

~~Table of Contents~~

On In September ~~30,~~ 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 propose to apply these adjustments to open tax years through 2019. The Company is engaged in discussions with the Authorities to evaluate the ~~proposals and~~proposals. During the three months ended September 30, 2022, the Company recorded additional tax reserves of $25 million for years prior to 2022 based on unilateral discussions with one of the relevant authorities. The Company is currently evaluating all additional potential remedies.

~~The~~As of September 30, 2022, the Company believes that an adequate provision for income taxes has been made for all open tax years related to the joint examination. However, the outcome of tax audits cannot be predicted with certainty. If any issues raised by the Authorities are resolved in a manner inconsistent with the Company's expectations or the Company is unsuccessful in defending its position, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. If required, any such adjustments could be material to the statements of operations and cash flows in the period(s) recorded.

In addition, the Company's income tax returns in Mexico are under audit for the years 2017 and 2018, and in Canada for the years 2016 through 2018. On January 14, 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 and does not

~~14.~~

Table of Contents

expect any material impact to income tax expense. Related to Canada, the Company is discussing preliminary findings with the Canadian authorities and does not expect a material impact to income tax expense.

12. Derivative Financial Instruments

Derivatives Designated As Hedges

Net Investment Hedges

The total notional amount of foreign currency denominated debt and cross-currency swaps designated as net investment hedges are as follows:

As of
September 30,
2021 As of
December 31,
2020
(In € millions)
Total 1,837 1,358


	As of September 30, 2022	As of December 31, 2021
	(In € millions)
Total	6,017	1,653

~~Cash Flow Hedges~~

~~The total notional amount~~Concurrently with the offering of the ~~forward-starting~~Acquisition USD Notes (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 ~~rate swap~~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 ~~a cash flow hedge is as follows:~~


	Asnet investment hedges of September 30, 2021	As of December 31, 2020
	~~(In $ millions)~~
~~Total~~	—	~~400~~

~~Cash flows related to~~ the ~~settlement~~Company's foreign currency exchange rate exposure on the net investments of ~~forward-starting interest rate swaps are reported as financing activities. The Company settled the forward-starting interest rate swap on August 2, 2021, resulting in a payment to the counterparty~~certain of ~~$72 million, which payment was included as part of financing activities in the unaudited interim consolidated statements of cash flows.~~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
September 30,
2021 As of
December 31,
2020
(In $ millions)
Total 634 546


	As of September 30, 2022	As of December 31, 2021
	(In $ millions)
Total	686	663

Table of Contents

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 September 30,				Statement of Operations Classification
		2021	2020	2021	2020			2022	2021	2022	2021
		(In $ millions)						(In $ millions)
Designated as Cash Flow Hedges	Designated as Cash Flow Hedges						Designated as Cash Flow Hedges
Commodity swaps	Commodity swaps	10	1	(1)	(5)	Cost of sales	Commodity swaps	(9)	10	11	(1)	Cost of sales
Interest rate swaps	Interest rate swaps	(7)	3	(1)	—	Interest expense	Interest rate swaps	—	(7)	(1)	(1)	Interest expense

Foreign currency forwards							Foreign currency forwards	2	—��	—	—	Cost of sales
Total	Total	3	4	(2)	(5)		Total	(7)	3	10	(2)

Designated as Net Investment Hedges	Designated as Net Investment Hedges						Designated as Net Investment Hedges
Foreign currency denominated debt (Note 8)		37	(54)	—	—	N/A
Foreign currency denominated debt (Note 7)							Foreign currency denominated debt (Note 7)	148	37	—	—	N/A
Cross-currency swaps	Cross-currency swaps	10	(25)	—	—	N/A	Cross-currency swaps	90	10	—	—	N/A

Total	Total	47	(79)	—	—		Total	238	47	—	—

Not Designated as Hedges	Not Designated as Hedges						Not Designated as Hedges

Foreign currency forwards and swaps	Foreign currency forwards and swaps	—	—	(2)	(11)	Foreign exchange gain (loss), net; Other income (expense), net	Foreign currency forwards and swaps	—	—	(8)	(2)	Foreign exchange gain (loss), net; Other income (expense), net
Total	Total	—	—	(2)	(11)		Total	—	—	(8)	(2)


		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)
		Nine Months Ended September 30,				Statement of Operations Classification		Nine Months Ended September 30,				Statement of Operations Classification
		2021	2020	2021	2020			2022	2021	2022	2021
		(In $ millions)						(In $ millions)
Designated as Cash Flow Hedges	Designated as Cash Flow Hedges						Designated as Cash Flow Hedges
Commodity swaps	Commodity swaps	33	4	(1)	(5)	Cost of sales	Commodity swaps	50	33	22	(1)	Cost of sales
Interest rate swaps	Interest rate swaps	10	(50)	(1)	—	Interest expense	Interest rate swaps	—	10	(5)	(1)	Interest expense

Foreign currency forwards							Foreign currency forwards	2	—	—	—	Cost of sales
Total	Total	43	(46)	(2)	(5)		Total	52	43	17	(2)

Designated as Net Investment Hedges	Designated as Net Investment Hedges						Designated as Net Investment Hedges
Foreign currency denominated debt (Note 8)		72	(39)	—	—	N/A
Foreign currency denominated debt (Note 7)							Foreign currency denominated debt (Note 7)	269	72	—	—	N/A
Cross-currency swaps	Cross-currency swaps	21	(3)	—	—	N/A	Cross-currency swaps	117	21	—	—	N/A

Total	Total	93	(42)	—	—		Total	386	93	—	—

Not Designated as Hedges	Not Designated as Hedges						Not Designated as Hedges

Foreign currency forwards and swaps	Foreign currency forwards and swaps	—	—	(6)	7	Foreign exchange gain (loss), net; Other income (expense), net	Foreign currency forwards and swaps	—	—	(12)	(6)	Foreign exchange gain (loss), net; Other income (expense), net
Total	Total	—	—	(6)	7		Total	—	—	(12)	(6)

See Note 1513 for additional information regarding the fair value of the Company's derivative instruments.

Certain of the Company's commodity swaps, interest rate swaps, cross-currency swaps and foreign currency forwards and swaps permit the Company to net settle all contracts with the counterparty through a single payment in an agreed upon currency in the event of default or early termination of the contract, similar to a master netting arrangement.

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, 2021	As of December 31, 2020		As of September 30, 2022	As of December 31, 2021
		(In $ millions)			(In $ millions)
Derivative Assets	Derivative Assets			Derivative Assets
Gross amount recognized	Gross amount recognized	58	26	Gross amount recognized	227	40
Gross amount offset in the consolidated balance sheets	Gross amount offset in the consolidated balance sheets	—	2	Gross amount offset in the consolidated balance sheets	—	—
Net amount presented in the consolidated balance sheets	Net amount presented in the consolidated balance sheets	58	24	Net amount presented in the consolidated balance sheets	227	40
Gross amount not offset in the consolidated balance sheets	Gross amount not offset in the consolidated balance sheets	9	11	Gross amount not offset in the consolidated balance sheets	2	2
Net amount	Net amount	49	13	Net amount	225	38


		As of September 30, 2021	As of December 31, 2020		As of September 30, 2022	As of December 31, 2021
		(In $ millions)			(In $ millions)
Derivative Liabilities	Derivative Liabilities			Derivative Liabilities
Gross amount recognized	Gross amount recognized	18	123	Gross amount recognized	36	5
Gross amount offset in the consolidated balance sheets	Gross amount offset in the consolidated balance sheets	—	2	Gross amount offset in the consolidated balance sheets	—	—
Net amount presented in the consolidated balance sheets	Net amount presented in the consolidated balance sheets	18	121	Net amount presented in the consolidated balance sheets	36	5
Gross amount not offset in the consolidated balance sheets	Gross amount not offset in the consolidated balance sheets	9	11	Gross amount not offset in the consolidated balance sheets	2	2
Net amount	Net amount	9	110	Net amount	34	3

~~15.~~13. Fair Value Measurements

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

Derivative financial instruments include interest rate swaps, commodity swaps, cross-currency swaps and foreign currency forwards and swaps and are valued in the market using discounted cash flow techniques. These techniques incorporate Level 1 and Level 2 fair value measurement inputs such as interest rates and foreign currency exchange rates. These market inputs are utilized in the discounted cash flow calculation considering the instrument's term, notional amount, discount rate and credit risk. Significant inputs to the derivative valuation for interest rate swaps, commodity swaps, cross-currency swaps and foreign currency forwards and swaps are observable in the active markets and are classified as Level 2 in the fair value measurement hierarchy.

Table of Contents


		Fair Value Measurement					Fair Value Measurement
		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Total	Balance Sheet Classification		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Total	Balance Sheet Classification
		(In $ millions)					(In $ millions)
As of September 30, 2021
As of September 30, 2022						As of September 30, 2022
Derivatives Designated as Cash Flow Hedges	Derivatives Designated as Cash Flow Hedges					Derivatives Designated as Cash Flow Hedges
Commodity swaps	Commodity swaps	—	15	15	Current Other assets	Commodity swaps	—	16	16	Current Other assets
Commodity swaps	Commodity swaps	—	24	24	Noncurrent Other assets	Commodity swaps	—	43	43	Noncurrent Other assets

Foreign currency forwards and swaps						Foreign currency forwards and swaps	—	1	1	Current Other assets
Derivatives Designated as Net Investment Hedges	Derivatives Designated as Net Investment Hedges					Derivatives Designated as Net Investment Hedges
Cross-currency swaps	Cross-currency swaps	—	14	14	Current Other assets	Cross-currency swaps	—	77	77	Current Other assets

Cross-currency swaps						Cross-currency swaps	—	84	84	Noncurrent Other assets
Derivatives Not Designated as Hedges	Derivatives Not Designated as Hedges					Derivatives Not Designated as Hedges
Foreign currency forwards and swaps	Foreign currency forwards and swaps	—	5	5	Current Other assets	Foreign currency forwards and swaps	—	6	6	Current Other assets
Total assets	Total assets	—	58	58		Total assets	—	227	227
Derivatives Designated as Cash Flow Hedges						Derivatives Designated as Cash Flow Hedges

Commodity swaps						Commodity swaps	—	(3)	(3)	Current Other liabilities

Derivatives Designated as Net Investment Hedges	Derivatives Designated as Net Investment Hedges					Derivatives Designated as Net Investment Hedges

Cross-currency swaps	Cross-currency swaps	—	(2)	(2)	Current Other liabilities	Cross-currency swaps	—	(27)	(27)	Current Other liabilities
Cross-currency swaps		—	(9)	(9)	Noncurrent Other liabilities

Derivatives Not Designated as Hedges	Derivatives Not Designated as Hedges					Derivatives Not Designated as Hedges
Foreign currency forwards and swaps	Foreign currency forwards and swaps	—	(7)	(7)	Current Other liabilities	Foreign currency forwards and swaps	—	(6)	(6)	Current Other liabilities
Total liabilities	Total liabilities	—	(18)	(18)		Total liabilities	—	(36)	(36)


		Fair Value Measurement					Fair Value Measurement
		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Total	Balance Sheet Classification		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Total	Balance Sheet Classification
		(In $ millions)					(In $ millions)

As of December 31, 2020
As of December 31, 2021						As of December 31, 2021
Derivatives Designated as Cash Flow Hedges	Derivatives Designated as Cash Flow Hedges					Derivatives Designated as Cash Flow Hedges
Commodity swaps	Commodity swaps	—	2	2	Current Other assets	Commodity swaps	—	8	8	Current Other assets
Commodity swaps	Commodity swaps	—	8	8	Noncurrent Other assets	Commodity swaps	—	23	23	Noncurrent Other assets

Derivatives Designated as Net Investment Hedges	Derivatives Designated as Net Investment Hedges					Derivatives Designated as Net Investment Hedges
Cross-currency swaps						Cross-currency swaps	—	2	2	Current Other assets
Cross-currency swaps	Cross-currency swaps	—	13	13	Current Other assets	Cross-currency swaps	—	5	5	Noncurrent Other assets
Derivatives Not Designated as Hedges	Derivatives Not Designated as Hedges					Derivatives Not Designated as Hedges
Foreign currency forwards and swaps	Foreign currency forwards and swaps	—	1	1	Current Other assets	Foreign currency forwards and swaps	—	2	2	Current Other assets
Total assets	Total assets	—	24	24		Total assets	—	40	40
Derivatives Designated as Cash Flow Hedges
Interest rate swaps		—	(81)	(81)	Current Other liabilities

Commodity swaps		—	(1)	(1)	Noncurrent Other liabilities

Derivatives Designated as Net Investment Hedges	Derivatives Designated as Net Investment Hedges					Derivatives Designated as Net Investment Hedges
Cross-currency swaps	Cross-currency swaps	—	(1)	(1)	Current Other liabilities	Cross-currency swaps	—	(2)	(2)	Current Other liabilities
Cross-currency swaps		—	(33)	(33)	Noncurrent Other liabilities

Derivatives Not Designated as Hedges	Derivatives Not Designated as Hedges					Derivatives Not Designated as Hedges
Foreign currency forwards and swaps	Foreign currency forwards and swaps	—	(5)	(5)	Current Other liabilities	Foreign currency forwards and swaps	—	(3)	(3)	Current Other liabilities
Total liabilities	Total liabilities	—	(121)	(121)		Total liabilities	—	(5)	(5)

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, 2021
As of September 30, 2022						As of September 30, 2022
Equity investments without readily determinable fair values	Equity investments without readily determinable fair values	170	—	—	—	Equity investments without readily determinable fair values	170	—	—	—
Insurance contracts in nonqualified trusts	Insurance contracts in nonqualified trusts	28	28	—	28	Insurance contracts in nonqualified trusts	24	24	—	24
Long-term debt, including current installments of long-term debt	Long-term debt, including current installments of long-term debt	3,772	3,731	179	3,910	Long-term debt, including current installments of long-term debt	12,398	11,467	166	11,633
As of December 31, 2020
As of December 31, 2021						As of December 31, 2021
Equity investments without readily determinable fair values	Equity investments without readily determinable fair values	171	—	—	—	Equity investments without readily determinable fair values	170	—	—	—
Insurance contracts in nonqualified trusts	Insurance contracts in nonqualified trusts	30	31	—	31	Insurance contracts in nonqualified trusts	28	28	—	28
Long-term debt, including current installments of long-term debt	Long-term debt, including current installments of long-term debt	3,671	3,644	201	3,845	Long-term debt, including current installments of long-term debt	3,722	3,639	173	3,812

In general, the equity investments included in the table above are not publicly traded and their fair values are not readily determinable. The Company believes the carrying values approximate fair value. Insurance contracts in nonqualified trusts consist of long-term fixed income securities, which are valued using independent vendor pricing models with observable inputs in the active market and therefore represent a Level 2 fair value measurement. The fair value of long-term debt is based on valuations from third-party banks and market quotations and is classified as Level 2 in the fair value measurement hierarchy. The fair value of obligations under finance leases, which are included in long-term debt, 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 30, ~~2021,~~2022, and December 31, ~~2020,~~2021, 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. Cash and cash equivalents includes $2.9 billion of U.S. treasury bills purchased during the three months ended September 30, 2022, which will be held to maturity. Unrealized gains and losses on the U.S. treasury bills were not significant as of September 30, 2022 and therefore, the amortized cost of the U.S. treasury bills approximated their fair value. These items have been excluded from the table with the exception of the current installments of long-term debt.

~~16.~~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 109).

Table of Contents

The Company's obligation to indemnify Hoechst, and its legal successors, is capped under Category B at €250 million. If and to the extent the environmental damage should exceed €750 million in aggregate, the Company's obligation to indemnify Hoechst and its legal successors applies, but is then limited to 33.33% of the remediation cost without further limitations. Cumulative payments under the divestiture agreements as of September 30, ~~2021~~2022 are ~~$100~~$106 million. Though the Company is significantly

~~Table of Contents~~

under its obligation cap under Category B, most of the divestiture agreements have become time barred and/or any notified environmental damage claims have been partially settled.

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

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

•Divestiture Obligations

The Company and its predecessor companies agreed to indemnify third-party purchasers of former businesses and assets for various pre-closing conditions, as well as for breaches of representations, warranties and covenants. Such liabilities also include environmental liability, product liability, antitrust and other liabilities. These indemnifications and guarantees represent standard contractual terms associated with typical divestiture agreements and, other than environmental liabilities, the Company does not believe that they expose the Company to significant risk (Note 109).

The Company has divested numerous businesses, investments and facilities through agreements containing indemnifications or guarantees to the purchasers. Many of the obligations contain monetary and/or time limitations, which extend through 2037. The aggregate amount of outstanding indemnifications and guarantees provided for under these agreements is ~~$116~~$125 million as of September 30, ~~2021.~~2022. Other agreements do not provide for any monetary or time limitations.

Based on the Company's evaluation of currently available information, including the number of requests for indemnification or other payment received by the Company, the Company cannot estimate the remaining divestiture obligations, if any, in excess of amounts accrued.

Purchase Obligations

In the normal course of business, the Company enters into various purchase commitments for goods and services. The Company maintains a number of "take-or-pay" contracts for purchases of raw materials, utilities and other services. Certain of the contracts contain a contract termination buy-out provision that allows for the Company to exit the contracts for amounts less than the remaining take-or-pay obligations. Additionally, the Company has other outstanding commitments representing maintenance and service agreements, energy and utility agreements, consulting contracts and software agreements. As of September 30, ~~2021,~~2022, the Company had unconditional purchase obligations of ~~$3.3~~$4.0 billion, which extend through 2042.

Contingencies

The Company is involved in legal and regulatory proceedings, lawsuits, claims and investigations incidental to the normal conduct of business, relating to such matters as product liability, land disputes, insurance coverage disputes, contracts, employment, antitrust or competition 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, 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 Investigation~~

In May 2017, the Company learned that the European Commission had opened a competition law investigation involving certain subsidiaries of the Company with respect to certain past ethylene purchases. Based on information learned from the European Commission regarding its investigation, Celanese recorded a reserve of $89 million in 2019, which was included within the Company's Other Activities segment. In July 2020, Celanese reached a final settlement with the European Commission in respect of this matter of $92 million, which was included in Current Other liabilities as of December 31, 2020. On January 12, 2021, the Company paid $100 million to fully settle this matter. The difference between the amount reserved and the settlement payment relates to foreign exchange rates.

Table of Contents

~~17.~~15. Segment Information


		Engineered Materials	Acetate Tow	Acetyl Chain	Other Activities	Eliminations		Consolidated			Engineered Materials	Acetate Tow	Acetyl Chain	Other Activities	Eliminations		Consolidated
		(In $ millions)									(In $ millions)
		Three Months Ended September 30, 2021									Three Months Ended September 30, 2022
Net sales	Net sales	684	128	1,489	—	(35)	(1)	2,266		Net sales	929	135	1,274	—	(37)	(1)	2,301
Other (charges) gains, net (Note 12)		—	—	1	(1)	—		—
Other (charges) gains, net (Note 18)										Other (charges) gains, net (Note 18)	(14)	—	—	(1)	—		(15)
Operating profit (loss)	Operating profit (loss)	91	12	517	(84)	—		536		Operating profit (loss)	114	(3)	315	(118)	—		308
Equity in net earnings (loss) of affiliates	Equity in net earnings (loss) of affiliates	39	—	1	4	—		44		Equity in net earnings (loss) of affiliates	69	—	1	3	—		73
Depreciation and amortization	Depreciation and amortization	35	10	44	4	—		93		Depreciation and amortization	43	10	43	4	—		100
Capital expenditures	Capital expenditures	36	10	73	4	—		123	(2)	Capital expenditures	34	9	65	15	—		123	(2)
		Three Months Ended September 30, 2020									Three Months Ended September 30, 2021
Net sales	Net sales	526	129	776	—	(20)	(1)	1,411		Net sales	684	128	1,489	—	(35)	(1)	2,266
Other (charges) gains, net (Note 12)		(10)	—	1	(1)	—		(10)
Other (charges) gains, net (Note 18)										Other (charges) gains, net (Note 18)	—	—	1	(1)	—		—
Operating profit (loss)	Operating profit (loss)	84	30	121	(51)	—		184		Operating profit (loss)	91	12	517	(84)	—		536
Equity in net earnings (loss) of affiliates	Equity in net earnings (loss) of affiliates	21	—	2	2	—		25		Equity in net earnings (loss) of affiliates	39	—	1	4	—		44
Depreciation and amortization	Depreciation and amortization	34	9	41	5	—		89		Depreciation and amortization	35	10	44	4	—		93
Capital expenditures	Capital expenditures	21	10	37	8	—		76	(2)	Capital expenditures	36	10	73	4	—		123	(2)

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

(2)Includes ~~an increase~~a decrease in accrued capital expenditures of ~~$21~~$16 million and $4an increase of $21 million for the three months ended September 30, ~~2021~~2022 and ~~2020,~~2021, respectively.

Table of Contents


		Engineered Materials	Acetate Tow	Acetyl Chain	Other Activities	Eliminations		Consolidated			Engineered Materials	Acetate Tow	Acetyl Chain	Other Activities	Eliminations		Consolidated
		(In $ millions)									(In $ millions)
		Nine Months Ended September 30, 2021									Nine Months Ended September 30, 2022
Net sales	Net sales	2,011	385	3,954	—	(88)	(1)	6,262		Net sales	2,787	379	4,268	—	(109)	(1)	7,325
Other (charges) gains, net (Note 12)		6	—	1	(4)	—		3
Other (charges) gains, net (Note 18)										Other (charges) gains, net (Note 18)	(14)	—	—	(1)	—		(15)
Operating profit (loss)	Operating profit (loss)	344	52	1,284	(251)	—		1,429		Operating profit (loss)	404	—	1,243	(325)	—		1,322
Equity in net earnings (loss) of affiliates	Equity in net earnings (loss) of affiliates	96	—	5	9	—		110		Equity in net earnings (loss) of affiliates	171	—	8	10	—		189
Depreciation and amortization	Depreciation and amortization	105	29	128	12	—		274		Depreciation and amortization	134	31	130	14	—		309
Capital expenditures	Capital expenditures	92	31	171	15	—		309	(2)	Capital expenditures	99	26	205	39	—		369	(2)
		As of September 30, 2021									As of September 30, 2022
Goodwill and intangible assets, net	Goodwill and intangible assets, net	994	154	286	—	—		1,434		Goodwill and intangible assets, net	1,544	152	243	—	—		1,939
Total assets	Total assets	4,205	1,088	4,327	1,963	—		11,583		Total assets	5,672	1,202	4,307	10,156	—		21,337
		Nine Months Ended September 30, 2020									Nine Months Ended September 30, 2021
Net sales	Net sales	1,509	385	2,237	—	(67)	(1)	4,064		Net sales	2,011	385	3,954	—	(88)	(1)	6,262
Other (charges) gains, net (Note 12)		(35)	(1)	6	(7)	—		(37)
Other (charges) gains, net (Note 18)										Other (charges) gains, net (Note 18)	6	—	1	(4)	—		3
Operating profit (loss)	Operating profit (loss)	173	88	377	(177)	—		461		Operating profit (loss)	344	52	1,284	(251)	—		1,429
Equity in net earnings (loss) of affiliates	Equity in net earnings (loss) of affiliates	100	—	3	10	—		113		Equity in net earnings (loss) of affiliates	96	—	5	9	—		110
Depreciation and amortization	Depreciation and amortization	100	26	122	13	—		261		Depreciation and amortization	105	29	128	12	—		274
Capital expenditures	Capital expenditures	73	26	118	25	—		242	(2)	Capital expenditures	92	31	171	15	—		309	(2)
		As of December 31, 2020									As of December 31, 2021
Goodwill and intangible assets, net	Goodwill and intangible assets, net	1,030	154	301	—	—		1,485		Goodwill and intangible assets, net	1,714	154	279	—	—		2,147
Total assets	Total assets	3,990	975	3,930	2,014	—		10,909		Total assets	5,363	1,098	4,428	1,086	—		11,975

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

(2)Includes ~~an increase~~a decrease in accrued capital expenditures of $5$31 million and ~~a decrease~~an increase of ~~$37~~$5 million for the nine months ended September 30, ~~2021~~2022 and ~~2020,~~2021, respectively.

~~18.~~16. Revenue Recognition

The Company has certain contracts that represent take-or-pay revenue arrangements in which the Company's performance obligations extend over multiple years. As of September 30, ~~2021,~~2022, the Company had ~~$622 million~~$1.3 billion of remaining performance obligations related to take-or-pay contracts. The Company expects to recognize approximately ~~$88~~$86 million of its remaining performance obligations as Net sales in ~~2021, $227~~2022, $348 million in ~~2022, $148~~2023, $351 million in ~~2023~~2024 and 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 Current and Noncurrent Other liabilities in the unaudited consolidated balance ~~sheets (Note 7~~).sheets.

The Company does not have any material contract assets as of September 30, ~~2021.~~2022.

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 customers' unique needs. Projects are identified and selected based on success rate and may involve a number of different polymers per project for use in multiple end-use applications. Therefore, the Company is agnostic toward products and end-use markets for the Engineered Materials business segment.

Table of Contents

Within the Acetate Tow business segment, the Company's primary product is acetate tow, which is managed through contracts with a few major tobacco companies and accounts for a significant amount of filters used in cigarette production worldwide.

The Company manages its Acetyl Chain business segment by leveraging its ability to sell chemicals externally to end-use markets or downstream to its emulsion polymers, redispersible powders and ethylene vinyl acetate ("EVA") polymers businesses. Decisions to sell externally and geographically or downstream and along the Acetyl Chain are based on market demand, trade flows and maximizing the value of its chemicals. Therefore, the Company's strategic focus is on executing within this integrated chain model and less on driving product-specific revenue.

Further disaggregation of Net sales by business segment and geographic destination is as follows:


		Three Months Ended September 30,		Nine Months Ended September 30,					Three Months Ended September 30,		Nine Months Ended September 30,
		2021	2020	2021	2020	2022	2021		2022	2021
		(In $ millions)							(In $ millions)
Engineered Materials	Engineered Materials							Engineered Materials
North America	North America	194	147	546	420			North America	292	194	865	546
Europe and Africa	Europe and Africa	282	222	882	665			Europe and Africa	355	282	1,112	882
Asia-Pacific	Asia-Pacific	185	141	518	381			Asia-Pacific	256	185	733	518
South America	South America	23	16	65	43			South America	26	23	77	65
Total	Total	684	526	2,011	1,509			Total	929	684	2,787	2,011

Acetate Tow	Acetate Tow							Acetate Tow
North America	North America	24	24	77	72			North America	24	24	75	77
Europe and Africa	Europe and Africa	64	64	204	203			Europe and Africa	65	64	181	204
Asia-Pacific	Asia-Pacific	39	40	99	101			Asia-Pacific	44	39	118	99
South America	South America	1	1	5	9			South America	2	1	5	5
Total	Total	128	129	385	385			Total	135	128	379	385

Acetyl Chain	Acetyl Chain							Acetyl Chain
North America	North America	405	246	1,046	728			North America	437	405	1,262	1,046
Europe and Africa	Europe and Africa	458	251	1,188	753			Europe and Africa	396	458	1,417	1,188
Asia-Pacific	Asia-Pacific	540	243	1,530	640			Asia-Pacific	357	540	1,354	1,530
South America	South America	51	16	102	49			South America	47	51	126	102
Total(1)	Total(1)	1,454	756	3,866	2,170			Total(1)	1,237	1,454	4,159	3,866

(1)Excludes intersegment sales of ~~$35~~$37 million and ~~$20~~$35 million for the three months ended September 30, ~~2021~~2022 and ~~2020,~~2021, respectively. Excludes intersegment sales of ~~$88~~$109 million and ~~$67~~$88 million for the nine months ended September 30, ~~2021~~2022 and ~~2020,~~2021, respectively.

Table of Contents

~~19.~~17. Earnings (Loss) Per Share


		Three Months Ended September 30,		Nine Months Ended September 30,			Three Months Ended September 30,		Nine Months Ended September 30,
		2021	2020	2021	2020		2022	2021	2022	2021
		(In $ millions, except share data)					(In $ millions, except share data)
Amounts attributable to Celanese Corporation	Amounts attributable to Celanese Corporation					Amounts attributable to Celanese Corporation
Earnings (loss) from continuing operations	Earnings (loss) from continuing operations	519	209	1,384	544	Earnings (loss) from continuing operations	192	519	1,134	1,384
Earnings (loss) from discontinued operations	Earnings (loss) from discontinued operations	(13)	(2)	(18)	(12)	Earnings (loss) from discontinued operations	(1)	(13)	(7)	(18)
Net earnings (loss)	Net earnings (loss)	506	207	1,366	532	Net earnings (loss)	191	506	1,127	1,366

Weighted average shares - basic	Weighted average shares - basic	110,532,051	118,045,476	112,101,651	118,543,853	Weighted average shares - basic	108,428,982	110,532,051	108,336,574	112,101,651
Incremental shares attributable to equity awards(1)	Incremental shares attributable to equity awards(1)	512,507	519,344	597,646	575,350	Incremental shares attributable to equity awards(1)	636,988	512,507	822,258	597,646
Weighted average shares - diluted	Weighted average shares - diluted	111,044,558	118,564,820	112,699,297	119,119,203	Weighted average shares - diluted	109,065,970	111,044,558	109,158,832	112,699,297

(1)~~There were~~Excludes 181,027 and 0 ~~antidilutive~~ equity award shares ~~excluded~~ for the three months ended September 30, 2022 and 2021, respectfully, as their effect would have been antidilutive. Excludes 149,272 and ~~2020. There were~~ 67 ~~and 8,127~~ equity award shares ~~excluded~~ for the nine months ended September 30, 2022 and 2021, ~~and 2020, respectively,~~respectfully, as their effect would have been antidilutive.

18. Other (Charges) Gains, Net


	Three Months Ended September 30,		Nine Months Ended September 30,
	2022	2021	2022	2021
	(In $ millions)
Restructuring	(3)	(1)	(3)	(5)



Asset impairments	(12)	—	(12)	(2)
Plant/office closures	—	1	—	10



Total	(15)	—	(15)	3

19. Subsequent Events

On November 1, 2022, the Company completed the M&M Acquisition pursuant to a definitive agreement entered into on February 17, 2022 between the Company and DuPont de Nemours, Inc. The M&M Acquisition was completed for $11.0 billion in cash, subject to transaction adjustments (the "Purchase Price"). The acquired operations will be included in the Engineered Materials segment (Note 3). The Company has not presented a purchase price allocation related to the fair values of assets acquired and liabilities assumed because the initial accounting for the acquisition was incomplete as of the issuance date of the financial statements. The Purchase Price was funded using net proceeds from the sale of the Acquisition Notes, the Term Loan Facility and cash on hand.

Table of Contents

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 U.S." refers to the Company's subsidiary, Celanese ~~U.S.~~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, ~~2020~~2021 filed on February ~~11, 2021~~10, 2022 with the Securities and Exchange Commission ("SEC") as part of the Company's Annual Reporting on Form 10-K ("~~2020~~2021 Form 10-K") and the unaudited interim consolidated financial statements and notes to the unaudited interim consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States of America ("U.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 ~~2020~~2021 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.

~~COVID-19 Update~~

The COVID-19 pandemic and the various responses thereto, including government-imposed quarantines, stay-at-home restrictions, travel restrictions and other public health and safety measures, continue to evolve. Our employees' health and well-being continue to be of vital importance and we continue to monitor the pandemic in the areas where we have employees and operations. We implemented government recommended protocols and best practices related to social distancing and hygiene. We implemented careful return-to-office efforts in accordance with government regulations and recommended protocols.

After declining during 2020, consumer demand for most applications has increased and rebounded to pre-COVID-19 levels within many regions of the world, which has positively impacted our results of operations. Where we temporarily reduced run rates in prior quarters, our plants are now operating at more normalized levels, and we have been able to maintain a largely consistent supply chain. We currently anticipate that the extent to which COVID-19 impacts customer demand will continue to moderate, subject to effective rollout of vaccines and the impact of resurgences and other variants of COVID-19. Like many companies, we have experienced a tightening labor market, with increased competitiveness and higher costs for the pool of talent critical for specialty manufacturing and other operations. Labor market challenges continued during the third quarter of 2021.

Due to potential impacts of COVID-19 resurgences and variants, some uncertainty remains in the pandemic's future duration and scope. The extent to which resurgences or other variants of COVID-19 may adversely impact demand for our products, availability and price of raw materials and the labor supply, and therefore our business, financial condition and results of operations, will depend on numerous factors, including the effectiveness of vaccines, the extent and locations of any resurgences of the virus, health and safety measures and the continuing impact of the pandemic on supply chains (including the availability and cost of transportation and materials). In addition, on September 9, 2021, the President directed the Occupational Safety and Health Administration to promulgate rules requiring large employers to mandate employee vaccinations. The extent of the regulatory and potential cost impact of these rules, referred to as the emergency temporary standard ("ETS"), is not clear, but the ETS could impose additional costs on our operations. These factors are uncertain, rapidly changing and cannot be

~~Table of Contents~~

~~predicted. For further information regarding the impact COVID-19 could have on our business, financial condition and results of operations, see~~ ~~Part I - Item 1A. Risk Factors~~ ~~in our Annual Report on Form 10-K for the year ended December 31, 2020. For further discussion of our liquidity condition, see~~ ~~Liquidity and Capital Resources~~ ~~in this~~ ~~Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations~~.

Risk Factors

See Part I - Item 1A. Risk Factors of our ~~2020~~2021 Form 10-K 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:

•~~the extent to which resurgences or other variants of COVID-19 adversely impact the economic environment, market demand and our operations, as well as the pace of any economic recovery;~~

•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"), including as a result of the performance of the M&M Business between signing and closing of the M&M Acquisition;

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

Table of Contents

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 and to complete and integrate acquisition or investment transactions, including obtaining regulatory approvals, consistent with our strategy;

•market acceptance of our technology;

•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 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 ~~liabilities~~impacts and ~~the impacts of~~ potential regulatory and legislative tax developments in the United States orand 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;

•the extent to which resurgences or variants of COVID-19 may adversely impact the economic environment, market demand, our operations, availability and cost of transportation and materials, the labor supply and pace of economic recovery;

•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

~~Table of Contents~~

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

Table of Contents

Many of these factors are macroeconomic in nature and are, therefore, beyond our control. COVID-19 and responses to the pandemic by governments and businesses, have significantly increased financial, economic and cost volatility and uncertainty, exacerbating the risks and potential impact of these factors. 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.

Overview

We are a global 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 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 automotive, chemical additives, construction, consumer and industrial adhesives, consumer and medical, energy storage, filtration, food and beverage, 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 across 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 differentiated business models and a clear focus on growth and value creation. Known for operational excellence, reliability and execution of our business strategies, we partner with our customers around the globe to deliver best-in-class technologies and solutions.

Table of Contents

Results of Operations

Financial Highlights


		Three Months Ended September 30,					Nine Months Ended September 30,						Three Months Ended September 30,					Nine Months Ended September 30,
		2021		2020		Change	2021		2020		Change		2022		2021		Change	2022		2021		Change
		(unaudited)											(unaudited)
		(In $ millions, except percentages)											(In $ millions, except percentages)
Statement of Operations Data	Statement of Operations Data											Statement of Operations Data
Net sales	Net sales	2,266		1,411		855	6,262		4,064		2,198	Net sales	2,301		2,266		35	7,325		6,262		1,063
Gross profit	Gross profit	715		327		388	1,961		917		1,044	Gross profit	546		715		(169)	1,996		1,961		35
Selling, general and administrative ("SG&A") expenses	Selling, general and administrative ("SG&A") expenses	(165)		(106)		(59)	(463)		(345)		(118)	Selling, general and administrative ("SG&A") expenses	(184)		(165)		(19)	(555)		(463)		(92)
Other (charges) gains, net	Other (charges) gains, net	—		(10)		10	3		(37)		40	Other (charges) gains, net	(15)		—		(15)	(15)		3		(18)
Operating profit (loss)	Operating profit (loss)	536		184		352	1,429		461		968	Operating profit (loss)	308		536		(228)	1,322		1,429		(107)
Equity in net earnings (loss) of affiliates	Equity in net earnings (loss) of affiliates	44		25		19	110		113		(3)	Equity in net earnings (loss) of affiliates	73		44		29	189		110		79
Non-operating pension and other postretirement employee benefit (expense) income	Non-operating pension and other postretirement employee benefit (expense) income	37		28		9	113		83		30	Non-operating pension and other postretirement employee benefit (expense) income	25		37		(12)	74		113		(39)
Interest expense	Interest expense	(21)		(28)		7	(70)		(83)		13	Interest expense	(154)		(21)		(133)	(237)		(70)		(167)

Interest income												Interest income	34		2		32	36		7		29
Dividend income - equity investments	Dividend income - equity investments	35		29		6	114		98		16	Dividend income - equity investments	30		35		(5)	103		114		(11)
Earnings (loss) from continuing operations before tax	Earnings (loss) from continuing operations before tax	622		241		381	1,691		680		1,011	Earnings (loss) from continuing operations before tax	321		622		(301)	1,491		1,691		(200)

Earnings (loss) from continuing operations	Earnings (loss) from continuing operations	520		211		309	1,388		550		838	Earnings (loss) from continuing operations	194		520		(326)	1,140		1,388		(248)
Earnings (loss) from discontinued operations	Earnings (loss) from discontinued operations	(13)		(2)		(11)	(18)		(12)		(6)	Earnings (loss) from discontinued operations	(1)		(13)		12	(7)		(18)		11
Net earnings (loss)	Net earnings (loss)	507		209		298	1,370		538		832	Net earnings (loss)	193		507		(314)	1,133		1,370		(237)
Net earnings (loss) attributable to Celanese Corporation	Net earnings (loss) attributable to Celanese Corporation	506		207		299	1,366		532		834	Net earnings (loss) attributable to Celanese Corporation	191		506		(315)	1,127		1,366		(239)
Other Data	Other Data											Other Data
Depreciation and amortization	Depreciation and amortization	93		89		4	274		261		13	Depreciation and amortization	100		93		7	309		274		35
SG&A expenses as a percentage of Net sales	SG&A expenses as a percentage of Net sales	7.3	%	7.5	%		7.4	%	8.5	%		SG&A expenses as a percentage of Net sales	8.0	%	7.3	%		7.6	%	7.4	%
Operating margin(1)	Operating margin(1)	23.7	%	13.0	%		22.8	%	11.3	%		Operating margin(1)	13.4	%	23.7	%		18.0	%	22.8	%

Other (charges) gains, net	Other (charges) gains, net											Other (charges) gains, net
Restructuring	Restructuring	(1)		(9)		8	(5)		(17)		12	Restructuring	(3)		(1)		(2)	(3)		(5)		2

Asset impairments	Asset impairments	—		(2)		2	(2)		(31)		29	Asset impairments	(12)		—		(12)	(12)		(2)		(10)
Plant/office closures	Plant/office closures	1		1		—	10		6		4	Plant/office closures	—		1		(1)	—		10		(10)
Commercial disputes		—		—		—	—		6		(6)
European Commission investigation		—		—		—	—		(2)		2
Other		—		—		—	—		1		(1)

Total Other (charges) gains, net	Total Other (charges) gains, net	—		(10)		10	3		(37)		40	Total Other (charges) gains, net	(15)		—		(15)	(15)		3		(18)

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


		As of September 30, 2021	As of December 31, 2020		As of September 30, 2022	As of December 31, 2021
		(unaudited)			(unaudited)
		(In $ millions)			(In $ millions)
Balance Sheet Data	Balance Sheet Data			Balance Sheet Data
Cash and cash equivalents	Cash and cash equivalents	1,340	955	Cash and cash equivalents	9,671	536

Short-term borrowings and current installments of long-term debt - third party and affiliates	Short-term borrowings and current installments of long-term debt - third party and affiliates	103	496	Short-term borrowings and current installments of long-term debt - third party and affiliates	977	791
Long-term debt, net of unamortized deferred financing costs	Long-term debt, net of unamortized deferred financing costs	3,724	3,227	Long-term debt, net of unamortized deferred financing costs	11,360	3,176
Total debt	Total debt	3,827	3,723	Total debt	12,337	3,967

Table of Contents

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 30, ~~2021~~2022 Compared to Three Months Ended September 30, ~~2020~~2021


		Volume	Price	Currency	Other	Total		Volume	Price	Currency	Other	Total
		(unaudited)						(unaudited)
		(In percentages)						(In percentages)
Engineered Materials	Engineered Materials	11	17	2	—	30	Engineered Materials	23	25	(12)	—	36
Acetate Tow	Acetate Tow	—	(2)	—	1	(1)	Acetate Tow	(3)	8	—	—	5
Acetyl Chain	Acetyl Chain	11	80	1	—	92	Acetyl Chain	(13)	2	(3)	—	(14)
Total Company	Total Company	10	50	1	—	61	Total Company	(2)	9	(5)	—	2

Nine Months Ended September 30, ~~2021~~2022 Compared to Nine Months Ended September 30, ~~2020~~2021


		Volume	Price	Currency	Other	Total		Volume	Price	Currency	Other	Total
		(unaudited)						(unaudited)
		(In percentages)						(In percentages)
Engineered Materials	Engineered Materials	18	10	5	—	33	Engineered Materials	22	25	(8)	—	39
Acetate Tow	Acetate Tow	1	(1)	—	—	—	Acetate Tow	(7)	5	—	—	(2)
Acetyl Chain	Acetyl Chain	14	61	2	—	77	Acetyl Chain	(4)	14	(2)	—	8
Total Company	Total Company	14	37	3	—	54	Total Company	4	17	(4)	—	17

Consolidated Results

Three Months Ended September 30, ~~2021~~2022 Compared to Three Months Ended September 30, ~~2020~~2021

Net sales increased ~~$855~~$35 million, or ~~61%~~2%, for the three months ended September 30, ~~2021~~2022 compared to the same period in ~~2020,~~2021, primarily due to:

•higher pricing in ~~most~~all of our segments, primarily driven by our Engineered Materials segment due to higher raw material costs, higher energy costs and product mix; and

•higher volume in our Engineered Materials segment, primarily in elastomers related to our acquisition of the Santoprene™ thermoplastic vulcanizates elastomers business of Exxon Mobil Corporation ("Santoprene");

partially offset by:

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

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

Selling, general and administrative expenses increased $19 million, or 12%, for the three months ended September 30, 2022 compared to the same period in 2021, primarily due to:

•higher functional and project spending of $51 million in Other Activities;

partially offset by:

•lower incentive compensation cost.

Operating profit decreased $228 million, or 43%, for the three months ended September 30, 2022 compared to the same period in 2021, primarily due to:

•higher raw material and energy costs across all of our segments;

Table of Contents

•lower Net sales in our Acetyl Chain segment; and

•higher spending in our Engineered Materials segment as a result of our acquisition of Santoprene, as well as plant operating and administrative expenses;

partially offset by:

•higher Net sales in our Engineered Materials segment.

Equity in net earnings (loss) of affiliates increased $29 million for the three months ended September 30, 2022 compared to the same period in 2021, primarily due to:

•an increase in equity investment in earnings of $39 million from our Ibn Sina strategic affiliate, primarily as a result of tighter market conditions and stronger demand.

Our effective income tax rate for the three months ended September 30, 2022 was 40% compared to 16% for the same period in 2021. The higher effective income tax rate was primarily due to increases in valuation allowances on U.S. foreign tax credit carryforwards due to revised forecasts of foreign sourced income and expenses during the carryforward period and increases in tax reserves related to ongoing income tax examinations. See Note 11 - Income Taxes in the accompanying unaudited interim consolidated financial statements for further information.

Nine Months Ended September 30, 2022 Compared to Nine Months Ended September 30, 2021

Net sales increased $1.1 billion, or 17%, for the nine months ended September 30, 2022 compared to the same period in 2021, primarily due to:

•higher pricing in all of our segments, primarily driven by our Acetyl Chain segment due to tighter market conditions as a result of increased customer demand in the Western Hemisphere and supply constraints across ~~all regions;~~most regions, as well as our Engineered Materials segment due to higher raw material costs, energy costs and product mix; and

•higher volume in our Engineered Materials segment, primarily in elastomers related to our acquisition of Santoprene;

partially offset by:

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

•lower volume in our other segments, primarily driven by our Acetyl Chain ~~segments, primarily~~segment due to ~~increased~~decreased demand ~~across all regions due to recovery from the COVID-19 pandemic.~~predominantly in Asia.

Selling, general and administrative expenses increased ~~$59~~$92 million, or ~~56%~~20%, for the ~~three~~nine months ended September 30, ~~2021~~2022 compared to the same period in ~~2020,~~2021, primarily due to:

•~~an increase in~~higher functional and project spending ~~and incentive compensation costs~~ of ~~$42~~$117 million in Other Activities.

Operating profit ~~increased $352~~decreased $107 million, or ~~191%~~7%, for the ~~three~~nine months ended September 30, ~~2021~~2022 compared to the same period in ~~2020,~~2021, primarily due to:

•~~higher Net sales across most of our segments;~~

~~partially offset by:~~

•higher raw material and energy costs across all of our segments; and

•higher spending across most of our segments, primarily driven by our Engineered Materials segment as a result of our acquisition of Santoprene, as well as plant operating and administrative ~~expenses.~~expenses;

partially offset by:

•higher Net sales across most of our segments.

Non-operating pension and other postretirement employee benefit income decreased $39 million, or 35%, for the nine months ended September 30, 2022 compared to the same period in 2021, primarily due to:

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

3637

Table of Contents

Equity in net earnings (loss) of affiliates increased ~~$19~~$79 million for the ~~three~~nine months ended September 30, ~~2021~~2022 compared to the same period in ~~2020,~~2021, primarily due to:

•an increase in equity investment in earnings of ~~$19~~$76 million from our Ibn Sina strategic affiliate, primarily ~~due to global economic recovery and higher oil prices.~~

Our effective income tax rate for the three months ended September 30, 2021 was 16% compared to 12% for the same period in 2020. The higher effective income tax rate for the three months ended September 30, 2021 compared to the same period in 2020 was primarily due to increased earnings in high tax jurisdictions. See ~~Note 13 - Income Taxes~~ ~~in the accompanying unaudited interim consolidated financial statements for further information.~~

~~Nine Months Ended September 30, 2021 Compared to Nine Months Ended September 30, 2020~~

~~Net sales increased $2.2 billion, or 54%, for the nine months ended September 30, 2021 compared to the same period in 2020, primarily due to:~~

•~~higher pricing in most of our segments, primarily driven by our Acetyl Chain segment due to increased customer demand and supply constraints across all regions;~~

•~~higher volume in our Engineered Materials and Acetyl Chain segments, primarily due to increased demand across most regions due to recovery from the COVID-19 pandemic; and~~

•~~a favorable currency impact resulting from a stronger Euro relative to the U.S. dollar.~~

~~Selling, general and administrative expenses increased $118 million, or 34%, for the nine months ended September 30, 2021 compared to the same period in 2020, primarily due to:~~

•~~an increase in functional spending and incentive compensation costs of $79 million in Other Activities.~~

~~Operating profit increased $968 million, or 210%, for the nine months ended September 30, 2021 compared to the same period in 2020, primarily due to:~~

•~~higher Net sales across most of our segments; and~~

•~~lower plant turnaround costs in our Engineered Materials segment;~~

~~partially offset by:~~

•~~higher raw material and energy costs across all of our segments; and~~

•~~higher spending across all of our segments, primarily~~ as a result of ~~increased plant operating~~tighter market conditions and ~~maintenance expenses.~~

Non-operating pension and other postretirement employee benefit income increased $30 million, or 36%, for the nine months ended September 30, 2021 compared to the same period in 2020, primarily due to:

•~~lower interest cost.~~stronger demand.

Our effective income tax rate for the nine months ended September 30, ~~2021~~2022 was ~~18%~~24% compared to ~~19%~~18% for the same period in ~~2020.~~2021. The ~~lower~~higher effective income tax rate ~~for the nine months ended September 30, 2021 compared to the same period in 2020~~ was primarily due to ~~non-recurring adjustments~~increases in ~~the prior periods to uncertain~~valuation allowances on U.S. foreign tax ~~positions~~credit carryforwards due to ~~available attribute carryforwards~~revised forecasts of foreign sourced income and expenses during the ~~impact of functional currency differences~~carryforward period and increases in ~~offshore jurisdictions, partially offset by~~tax reserves related to ongoing income tax examinations and increased earnings in high tax jurisdictions. See Note 13 11 - Income Taxes in the accompanying unaudited interim consolidated financial statements for further information.

3738

Table of Contents

Business Segments

Engineered Materials


		Three Months Ended September 30,				Change		% Change				Nine Months Ended September 30,						Change			% Change			Three Months Ended September 30,								Change				% Change					Nine Months Ended September 30,								Change			% Change
		2021		2020						2021				2020						2022					2021									2022							2021
		(unaudited)																						(unaudited)
		(In $ millions, except percentages)																						(In $ millions, except percentages)
Net sales	Net sales	684		526			158			30.0	%			2,011			1,509		502					33.3		%	Net sales	929			684				245					35.8		%		2,787				2,011			776					38.6	%
Net Sales Variance	Net Sales Variance																						Net Sales Variance
Volume	Volume	11	%									18	%										Volume	23		%															22		%
Price	Price	17	%									10	%										Price	25		%															25		%
Currency	Currency	2	%									5	%										Currency	(12)		%															(8)		%
Other	Other	—	%									—	%										Other	—		%															—		%
Other (charges) gains, net	Other (charges) gains, net	—		(10)		10		100.0	%			6			(35)			41			117.1	%	Other (charges) gains, net	(14)					—				(14)				(100.0)		%			(14)				6				(20)			(333.3)		%
Operating profit (loss)	Operating profit (loss)	91		84		7		8.3	%			344			173			171			98.8	%	Operating profit (loss)	114					91			23				25.3		%			404				344				60			17.4		%
Operating margin	Operating margin	13.3	%	16.0	%							17.1	%		11.5	%							Operating margin	12.3		%			13.3	%											14.5		%		17.1		%
Equity in net earnings (loss) of affiliates	Equity in net earnings (loss) of affiliates	39		21		18		85.7	%			96			100			(4)			(4.0)	%	Equity in net earnings (loss) of affiliates	69					39			30				76.9		%			171				96				75			78.1		%

Depreciation and amortization	Depreciation and amortization	35		34		1		2.9	%			105			100			5			5.0	%	Depreciation and amortization	43					35			8				22.9		%			134				105				29			27.6		%

Our 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. Our food ingredients business is a leading global supplier of acesulfame potassium for the food and beverage industry and is a leading producer of ~~preservatives,~~food protection ingredients, such as potassium sorbate and sorbic acid.

The pricing of products within the Engineered Materials segment is primarily based on the value of the material we produce and is generally independent of changes in the cost of raw 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 30, ~~2021~~2022 Compared to Three Months Ended September 30, ~~2020~~2021

Net sales increased for the three months ended September 30, ~~2021~~2022 compared to the same period in ~~2020,~~2021, primarily due to:

•higher pricing for most of our products, primarily due to higher raw material costs, higher energy costs and product mix; and

•higher volume, ~~for most~~primarily in elastomers related to our acquisition of ~~our products driven by increased demand across all regions due~~Santoprene;

partially offset by:

•an unfavorable currency impact resulting from a weaker euro relative to ~~recovery from~~ the ~~COVID-19 pandemic.~~U.S. dollar.

Operating profit increased for the three months ended September 30, ~~2021~~2022 compared to the same period in ~~2020,~~2021, primarily due to:

•higher Net sales;

largely offset by:

•higher raw material costs for most of our products and increased sourcing costs as a result of higher logistical costs and global shipping constraints;

•higher energy costs of $66 million, primarily for steam;

Table of Contents

•higher spending of $37 million, primarily as a result of our acquisition of Santoprene, as well as plant operating and administrative expenses; and

•~~a favorable~~an unfavorable impact of ~~$10~~$14 million to Other (charges) gains, net. During the three months ended September 30, ~~2020,~~2022, we recorded an $8 million ~~in employee termination benefits, primarily~~long-lived asset impairment loss related to ~~business optimization projects, which did not recur~~certain fixed and intangible assets used in manufacturing operations in Silao, Mexico in the current year. See Note 123 - ~~Other (Charges) Gains, Net~~Acquisitions, Dispositions and Plant Closures in the accompanying unaudited interim consolidated financial statements for further ~~information;~~

~~partially offset by:~~

•~~higher raw material costs across all products and increased distribution costs as a result of higher logistical costs and global shipping constraints;~~

~~Table of Contents~~

•~~higher spending of $47 million, primarily as a result of plant operating and administrative expenses; and~~

•~~higher energy costs of $27 million, primarily for steam.~~information.

Equity in net earnings (loss) of affiliates increased for the three months ended September 30, ~~2021~~2022 compared to the same period in ~~2020,~~2021, primarily due to:

•an increase in equity investment in earnings of ~~$19~~$39 million from our Ibn Sina strategic affiliate, primarily ~~due to global economic recovery~~as a result of tighter market conditions and ~~higher oil prices.~~stronger demand.

Nine Months Ended September 30, ~~2021~~2022 Compared to Nine Months Ended September 30, ~~2020~~2021

Net sales increased for the nine months ended September 30, ~~2021~~2022 compared to the same period in ~~2020,~~2021, primarily due to:

•~~higher volume for most of our products driven by increased demand across all regions due to recovery from the COVID-19 pandemic;~~

•higher pricing for most of our products, primarily due to higher raw material costs, higher energy costs and product mix; and

•~~a favorable~~higher volume, primarily in elastomers related to our acquisition of Santoprene;

partially offset by:

•an unfavorable currency impact resulting from a ~~stronger Euro~~weaker euro relative to the U.S. dollar.

Operating profit increased for the nine months ended September 30, ~~2021~~2022 compared to the same period in ~~2020,~~2021, primarily due to:

•higher Net sales;

largely offset by:

•higher raw material costs for all of our products and increased sourcing costs as a ~~favorable~~result of higher logistical costs and global shipping constraints;

•higher energy costs of $146 million, primarily for steam;

•higher spending of $113 million, primarily as a result of our acquisition of Santoprene, as well as plant operating and administrative expenses; and

•an unfavorable impact of ~~$41~~$20 million to Other (charges) gains, net. During the nine months ended September 30, 2020, we recorded a $26 million long-lived asset impairment loss related to certain fixed assets used in compounding operations at our facilities in Kaiserslautern, Germany; Wehr, Germany and Ferrara Marconi, Italy and $9 million in employee termination benefits, primarily related to business optimization projects. During the nine months ended September 30, 2021, we recorded a $9 million gain on the termination of our Ferrara Marconi, Italy office ~~lease. See~~ ~~Note 12 - Other (Charges) Gains, Net~~lease, which did not recur in the ~~accompanying unaudited interim consolidated financial statements~~current year. During the nine months ended September 30, 2022, we recorded an $8 million long-lived asset impairment loss related to certain fixed and intangible assets used in manufacturing operations in Silao, Mexico in the current year.

Equity in net earnings (loss) of affiliates increased for ~~further information; and~~the nine months ended September 30, 2022 compared to the same period in 2021, primarily due to:

•~~lower plant turnaround costs~~an increase in equity investment in earnings of ~~$23~~$76 million ~~primarily related to~~from our ~~Bishop plant in 2020;~~

~~partially offset by:~~

•~~higher raw material costs across all products and increased distribution costs as a result of higher logistical costs and global shipping constraints;~~

•~~higher spending of $62 million,~~Ibn Sina strategic affiliate, primarily as a result of ~~plant operating~~tighter market conditions and ~~administrative expenses; and~~

•~~higher energy costs of $48 million, primarily for steam.~~stronger demand.

3940

Table of Contents

Acetate Tow


		Three Months Ended September 30,				Change		% Change				Nine Months Ended September 30,						Change			% Change			Three Months Ended September 30,								Change				% Change					Nine Months Ended September 30,								Change			% Change
		2021		2020						2021				2020						2022					2021									2022							2021
		(unaudited)																						(unaudited)
		(In $ millions, except percentages)																						(In $ millions, except percentages)
Net sales	Net sales	128		129			(1)			(0.8)	%			385			385		—					—		%	Net sales	135			128				7					5.5		%		379				385			(6)					(1.6)	%
Net Sales Variance	Net Sales Variance																						Net Sales Variance
Volume	Volume	—	%									1	%										Volume	(3)		%															(7)		%
Price	Price	(2)	%									(1)	%										Price	8		%															5		%
Currency	Currency	—	%									—	%										Currency	—		%															—		%
Other	Other	1	%									—	%										Other	—		%															—		%
Other (charges) gains, net		—		—		—		—	%			—			(1)			1			100.0	%

Operating profit (loss)	Operating profit (loss)	12		30		(18)		(60.0)	%			52			88			(36)			(40.9)	%	Operating profit (loss)	(3)					12				(15)				(125.0)		%			—				52				(52)			(100.0)		%
Operating margin	Operating margin	9.4	%	23.3	%							13.5	%		22.9	%							Operating margin	(2.2)		%			9.4	%											—		%		13.5		%

Dividend income - equity investments	Dividend income - equity investments	34		28		6		21.4	%			112			97			15			15.5	%	Dividend income - equity investments	30					34			(4)				(11.8)		%			102				112				(10)			(8.9)		%
Depreciation and amortization	Depreciation and amortization	10		9		1		11.1	%			29			26			3			11.5	%	Depreciation and amortization	10					10			—				—		%			31				29				2			6.9		%

Our Acetate Tow segment serves consumer-driven applications. We are a leading global producer and supplier of acetate tow and acetate flake, primarily used in filter products applications.

The pricing of products within the Acetate Tow segment is sensitive to demand and is primarily based on the value of the product we produce. Many sales in this business are conducted under contracts with pricing for one or more years. As a result, margins may expand or contract in response to changes in market conditions 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, ~~2021~~2022 Compared to Three Months Ended September 30, ~~2020~~2021

Net sales ~~were flat~~increased for the three months ended September 30, ~~2021~~2022 compared to the same period in ~~2020.~~2021, primarily due to:

•higher pricing, primarily due to higher raw material and energy costs.

Operating profit decreased for the three months ended September 30, ~~2021~~2022 compared to the same period in ~~2020,~~2021, primarily due to:

•higher energy costs of $9$10 million, primarily related to natural gas pricing; and

•higher raw material costs of $8$7 million ~~primarily for acetic acid.~~as a result of cost inflation and global shipping constraints;

partially offset by:

•higher Net sales.

Nine Months Ended September 30, ~~2021~~2022 Compared to Nine Months Ended September 30, ~~2020~~2021

Net sales ~~were flat~~decreased for the nine months ended September 30, ~~2021~~2022 compared to the same period in ~~2020.~~2021, primarily due to:

•lower acetate tow volume primarily related to dynamic market conditions, as well as supply constraints and shipping vessel disruptions;

partially offset by:

•higher pricing, primarily due to higher raw material and energy costs.

Table of Contents

Operating profit decreased for the nine months ended September 30, ~~2021~~2022 compared to the same period in ~~2020,~~2021, primarily due to:

•higher energy ~~and spending~~ costs of ~~$23~~$34 million, primarily related to ~~higher~~ natural gas ~~pricing and plant operating costs; and~~pricing;

•higher raw material costs of $9$20 million ~~primarily for acetic acid.~~as a result of cost inflation and global shipping constraints; and

~~Dividend income from equity investments increased for the nine months ended September 30, 2021 compared to the same period in 2020, primarily due to:~~

•~~higher earnings from our Nantong, Zhuhai and Kunming Cellulose Fibers joint ventures related to higher volumes due to stronger financial performance and a favorable currency impact.~~lower Net sales.

4042

Table of Contents

Acetyl Chain


		Three Months Ended September 30,				Change		% Change				Nine Months Ended September 30,						Change			% Change			Three Months Ended September 30,								Change				% Change					Nine Months Ended September 30,								Change			% Change
		2021		2020						2021				2020						2022					2021									2022							2021
		(unaudited)																						(unaudited)
		(In $ millions, except percentages)																						(In $ millions, except percentages)
Net sales	Net sales	1,489		776			713			91.9	%			3,954			2,237		1,717					76.8		%	Net sales	1,274			1,489				(215)					(14.4)		%		4,268				3,954			314					7.9	%
Net Sales Variance	Net Sales Variance																						Net Sales Variance
Volume	Volume	11	%									14	%										Volume	(13)		%															(4)		%
Price	Price	80	%									61	%										Price	2		%															14		%
Currency	Currency	1	%									2	%										Currency	(3)		%															(2)		%
Other	Other	—	%									—	%										Other	—		%															—		%
Other (charges) gains, net		1		1		—		—	%			1			6			(5)			(83.3)	%

Operating profit (loss)	Operating profit (loss)	517		121		396		327.3	%			1,284			377			907			240.6	%	Operating profit (loss)	315					517				(202)				(39.1)		%			1,243				1,284				(41)			(3.2)		%
Operating margin	Operating margin	34.7	%	15.6	%							32.5	%		16.9	%							Operating margin	24.7		%			34.7	%											29.1		%		32.5		%

Depreciation and amortization	Depreciation and amortization	44		41		3		7.3	%			128			122			6			4.9	%	Depreciation and amortization	43					44			(1)				(2.3)		%			130				128				2			1.6		%

Our Acetyl Chain segment includes the integrated chain of our intermediate chemistry, emulsion polymers, ethylene vinyl acetate ("EVA") polymers and redispersible powders ("RDP") businesses. Our intermediate chemistry business produces and supplies acetyl products, including acetic acid, vinyl acetate monomer ("VAM"), acetic anhydride and acetate esters. These products are generally used as starting materials for colorants, paints, adhesives, coatings and pharmaceuticals. It also produces organic solvents and intermediates for pharmaceutical, agricultural and chemical products. Our emulsion polymers business is a leading global producer of vinyl acetate-based emulsions and develops products and application technologies to improve performance, create value and drive innovation in applications such as paints and coatings, adhesives, construction, glass fiber, textiles and paper. Our EVA polymers business is a leading North American manufacturer of a full range of specialty EVA resins and compounds, as well as select grades of low-density polyethylene. Our EVA polymers products are used in many applications, including flexible packaging films, lamination film products, hot melt adhesives, automotive parts and carpeting. Our RDP business is a leading manufacturer of redispersible polymer powders, sold under the Elotex® brand. The business produces polymer emulsions which are converted into powdered thermoplastic resin materials. RDP products are used in a variety of applications in the mortar industry, including decorative mortar, exterior insulation and finish systems, gypsum-based materials, plaster and render, self-leveling floor systems, skim coat and tile adhesives.

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

Three Months Ended September 30, ~~2021~~2022 Compared to Three Months Ended September 30, ~~2020~~2021

Net sales ~~increased~~decreased for the three months ended September 30, ~~2021~~2022 compared to the same period in ~~2020,~~2021, primarily due to:

•lower volume for most of our products due to decreased demand primarily in Asia and Europe;

•lower pricing for acid, primarily due to weaker economic conditions particularly in China; and

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

partially offset by:

•higher pricing for most of our other products, primarily due to tighter market conditions as a result of increased customer demand in the Western Hemisphere and supply constraints across most regions.

Operating profit decreased for the three months ended September 30, 2022 compared to the same period in 2021, primarily due to:

•lower Net sales;

Table of Contents

•higher raw material and sourcing costs, primarily for methanol and carbon monoxide due to stronger demand and tighter market conditions, as well as higher distribution costs due to global shipping constraints; and

•higher energy costs of $27 million, primarily due to price increases for natural gas and electricity.

Nine Months Ended September 30, 2022 Compared to Nine Months Ended September 30, 2021

Net sales increased for the nine months ended September 30, 2022 compared to the same period in 2021, primarily due to:

•higher pricing for ~~all~~most of our products, primarily due to tighter market conditions as a result of increased customer demand in the Western Hemisphere and supply constraints across ~~all~~most regions; and

•higher volume, primarily for ~~most of our products driven by increased demand across most regions~~VAM due to ~~recovery from~~lower competitor utilization in the ~~COVID-19 pandemic.~~

~~Operating profit increased for the three months ended September 30, 2021 compared to the same period in 2020, primarily due to:~~

•~~higher Net sales;~~Western Hemisphere;

partially offset by:

•lower volume for most of our other products due to decreased demand, primarily in Asia; and

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

Operating profit decreased for the nine months ended September 30, 2022 compared to the same period in 2021, primarily due to:

•higher raw material and sourcing costs, primarily for ~~ethylene,~~ methanol, ~~and~~ carbon monoxide ~~as well as higher sourcing~~ and ~~distribution costs~~ethylene due to stronger demand and tighter market ~~conditions;~~conditions, as well as higher distribution costs due to global shipping constraints;

~~Table~~•higher energy costs of ~~Contents~~$62 million, primarily due to price increases for natural gas and electricity; and

•higher spending of ~~$21~~$49 million, primarily as a result of increased plant operating and maintenance expenses; ~~and~~

•~~higher energy costs of $16 million, primarily driven by price increases for, and increased consumption of, natural gas due to increased volumes.~~

~~Nine Months Ended September 30, 2021 Compared to Nine Months Ended September 30, 2020~~

~~Net sales increased for the nine months ended September 30, 2021 compared to the same period in 2020, primarily due to:~~

•~~higher pricing for all of our products, primarily due to increased customer demand and supply constraints across all regions;~~

•~~higher volume for all of our products driven by increased demand across most regions due to recovery from the COVID-19 pandemic; and~~

•~~a favorable currency impact resulting from a stronger Euro relative to the U.S. dollar.~~

~~Operating profit increased for the nine months ended September 30, 2021 compared to the same period in 2020, primarily due to:~~

•~~higher Net sales;~~

~~partially~~largely offset by:

•higher ~~raw material costs, primarily for ethylene, methanol and carbon monoxide, as well as higher sourcing and distribution costs due to stronger demand and tighter market conditions;~~

•higher spending of $68 million, primarily as a result of increased plant operating and maintenance expenses, fixed overhead, freeze-related repairs and restart costs resulting from Winter Storm Uri; and

•~~higher energy costs of $46 million, primarily due to supply disruptions caused by Winter Storm Uri, price increases for, and increased consumption of, natural gas due to increased volumes.~~Net sales.

4244

Table of Contents

Other Activities

Three Months Ended September 30, Change %
Change Nine Months Ended September 30, Change %
Change
2021 2020 2021 2020
(unaudited)
(In $ millions, except percentages)
Other (charges) gains, net (1) (1) — — % (4) (7) 3 42.9 %
Operating profit (loss) (84) (51) (33) (64.7) % (251) (177) (74) (41.8) %
Equity in net earnings (loss) of affiliates 4 2 2 100.0 % 9 10 (1) (10.0) %
Non-operating pension and other postretirement employee benefit (expense) income 37 28 9 32.1 % 113 83 30 36.1 %
Dividend income - equity investments 1 1 — — % 2 1 1 100.0 %
Depreciation and amortization 4 5 (1) (20.0) % 12 13 (1) (7.7) %


	Three Months Ended September 30,		Change	% Change		Nine Months Ended September 30,		Change	% Change
	2022	2021				2022	2021
	(unaudited)
	(In $ millions, except percentages)

Operating profit (loss)	(118)	(84)	(34)	(40.5)	%	(325)	(251)	(74)	(29.5)	%

Non-operating pension and other postretirement employee benefit (expense) income	25	37	(12)	(32.4)	%	74	113	(39)	(34.5)	%

Other Activities primarily consists of corporate center costs, including administrative activities such as finance, information technology and human resource functions, interest income and expense associated with financing activities and results of our captive insurance companies. Other Activities also includes the components of net periodic benefit cost (interest cost, expected return on assets and net actuarial gains and losses) for our defined benefit pension plans and other postretirement plans not allocated to our business segments.

Three Months Ended September 30, ~~2021~~2022 Compared to Three Months Ended September 30, ~~2020~~2021

Operating loss increased for the three months ended September 30, ~~2021~~2022 compared to the same period in ~~2020,~~2021, primarily due to:

•higher functional and project spending ~~and incentive compensation costs~~ of ~~$42~~$51 million;

partially offset by:

•~~a gain on the sale of our Spondon site of $14 million.~~lower incentive compensation cost.

Non-operating pension and other postretirement employee benefit income ~~increased~~decreased for the three months ended September 30, ~~2021~~2022 compared to the same period in ~~2020,~~2021, primarily due to:

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

Nine Months Ended September 30, ~~2021~~2022 Compared to Nine Months Ended September 30, ~~2020~~2021

Operating loss increased for the nine months ended September 30, ~~2021~~2022 compared to the same period in ~~2020,~~2021, primarily due to:

•higher functional and project spending ~~and~~of $117 million;

partially offset by:

•lower incentive compensation ~~costs of $79 million.~~cost.

Non-operating pension and other postretirement employee benefit income ~~increased~~decreased for the nine months ended September 30, ~~2021~~2022 compared to the same period in ~~2020,~~2021, primarily due to:

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

4345

Table of Contents

Liquidity and Capital Resources

Our primary sources of liquidity are cash generated from operations, available cash and cash equivalents, dividends from our portfolio of strategic investments and available borrowings under our senior unsecured revolving credit facility. As of September 30, ~~2021,~~2022, we have ~~$1.3~~$1.75 billion available for borrowing under our senior unsecured 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~~$9.7 billion as of September 30, ~~2021.~~2022. We are actively managing our business to maintain 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 30, 2021,~~February 17, 2022, we signed a definitive agreement to acquire a majority of the ~~Santoprene™ thermoplastic vulcanizates ("TPV") elastomers~~Mobility & Materials business of ~~Exxon Mobil Corporation~~DuPont de Nemours, Inc. (the "M&M Acquisition") for a purchase price of ~~$1.15~~$11.0 billion, subject to certain adjustments, in an all-cash transaction. ~~See~~For further information regarding the acquisition and related financing transactions, see Debt and Other Obligations in this Liquidity and Capital Resources and Note 3 - Acquisitions, Dispositions and Plant Closures in the accompanying unaudited interim consolidated financial statements. We closed on the M&M Acquisition on November 1, 2022. See Note 19 - Subsequent Events in the accompanying unaudited interim consolidated financial statements for further information.

Our incurrence of debt to finance the purchase price for the M&M Acquisition has increased our leverage and will increase, as of the closing of the M&M Acquisition, 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, reevaluated and reduced our anticipated 2022 capital expenditures by approximately $50 million and are in the process of evaluating additional cash generation opportunities which may include the opportunistic disposition or monetization of 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 $500 million to~~approximately $550 million in ~~2021,~~2022, primarily due to ~~additional~~certain investments in growth opportunities and productivity ~~improvements in our~~improvements. In Engineered Materials, ~~and~~our planned expansion of the compounding capacity at our facilities in China is experiencing some delays due to certain permitting issues. In the Acetyl Chain, ~~segments.~~our planned expansion of (1) the capacity of our vinyl acetate ethylene ("VAE") and emulsions plants in Nanjing, China, (2) the capacity of our vinyl acetate monomer ("VAM") plant in Bay City, Texas and (3) the sustainable production of methanol at our Fairway joint venture in Clear Lake, Texas using captured carbon dioxide as feedstock, are on schedule. Lastly, our planned acetic acid expansion in Clear Lake, Texas and our VAE emulsion plant expansion in Frankfurt, Germany, are still in construction and on schedule. 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 U.S., have 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 U.S. in order to meet their obligations, including their obligations under senior credit facilities and senior notes, and to pay dividends on our Common Stock.

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

Table of Contents

We remain in compliance with the financial covenants under our senior unsecured ~~revolving~~ credit ~~facility~~facilities and expect to remain in compliance based on our current expectation of future results of operations. If our actual future results of operations differ materially from these expectations, ~~or if we otherwise experience increased indebtedness or substantially lower EBITDA,~~ we may be required to seek an amendment or waiver of such covenants which may increase our borrowing costs under those debt instruments.

Cash Flows

Cash and cash equivalents increased ~~$385 million~~$9.1 billion to ~~$1.3~~$9.7 billion as of September 30, ~~2021~~2022 compared to December 31, ~~2020.~~2021. As of September 30, ~~2021, $777~~2022, $825 million of the ~~$1.3~~$9.7 billion of cash and cash equivalents was held by our foreign subsidiaries. ~~Upon adoption of~~Under the TCJA, we ~~previously~~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 without additional material tax consequences, if needed in the U.S., to fund operations.

~~Table of Contents~~

•Net Cash Provided by (Used in) Operating Activities

Net cash provided by operating activities increased ~~$104~~$105 million to ~~$1.2~~$1.3 billion for the nine months ended September 30, ~~2021~~2022 compared to the same period in ~~2020. Net cash provided by operating activities for~~2021, primarily due to:

•a decrease in VAT taxes receivable primarily due to the receipt of refunds during the nine months ended September 30, ~~2021 increased, primarily due to:~~2022;

•~~an increase~~a payment for the European Commission settlement of $100 million, which did not recur in ~~Net earnings;~~the current year; and

~~partially offset by:~~

•~~unfavorable~~favorable trade working capital of ~~$567~~$65 million, primarily due to ~~an increase~~a decrease in trade receivables and ~~inventory,~~trade payables, partially offset by an increase in ~~trade payables.~~inventory. Trade receivables ~~increased~~decreased primarily as a result of the ~~increase in Net sales~~timing of trade receivable collections during the nine months ended September 30, 2022 and ~~inventory~~trade payables decreased as a result of the timing of settlement of trade payables. Inventory increased primarily as a result of higher costs for raw materials during the nine months ended September 30, ~~2021. Payables increased as a result of higher costs for raw materials and the timing of settlement of trade payables;~~2022;

•~~an increase in VAT taxes receivable, primarily due to timing of refunds and COVID-19 relief measures during the nine months ended September 30, 2020, which did not recur in the current year; and~~partially offset by:

•a ~~payment for the European Commission settlement of $100 million, see~~ ~~Note 16 - Commitments and Contingencies~~decrease in ~~the accompanying unaudited interim consolidated financial statements for further information.~~Net earnings.

•Net Cash Provided by (Used in) Investing Activities

Net cash ~~provided by~~used in investing activities increased ~~$554~~$595 million to ~~$167~~$428 million for the nine months ended September 30, ~~2021~~2022 compared to net cash ~~used in~~provided by investing activities of ~~$387~~$167 million for the same period in ~~2020,~~2021, primarily due to:

•~~an increase in~~ proceeds from the sale of marketable securities of $500 ~~million; and~~

•~~a net cash outflow of $85~~ million, ~~primarily related to the acquisition of Nouryon's redispersible polymer powders business offered under the Elotex~~® ~~brand in April 2020,~~ which did not recur in the current ~~year.~~year; and

•an increase of $96 million in capital expenditures during the nine months ended September 30, 2022.

•Net Cash Provided by (Used in) Financing Activities

Net cash ~~used in~~provided by financing activities increased ~~$405 million~~$9.3 billion to ~~$943 million~~$8.3 billion for the nine months ended September 30, ~~2021~~2022 compared to ~~$538~~net cash used in financing activities of $943 million for the same period in ~~2020,~~2021, primarily due to:

•an increase in net proceeds of long-term debt of $8.8 billion, primarily due to the issuance of senior unsecured notes consisting of $2.0 billion in principal amount of 5.900% notes due July 5, 2024, $1.75 billion in principal amount of 6.050% notes due March 15, 2025, $2.0 billion in principal amount of 6.165% notes due July 15, 2027, $750 million in principal amount of 6.330% notes due July 15, 2029 and $1.0 billion in principal amount of 6.379% notes due July 15, 2032 (collectively, the "Acquisition USD Notes"), as well as senior unsecured notes consisting of €1.0 billion in principal amount of 4.777% notes due July 19, 2026 and €500 million in principal amount of 5.337% notes due January 19, 2029 (collectively, the "Acquisition Euro Notes" and, together with the Acquisition USD Notes, the "Acquisition Notes"), partially offset by the maturity of the 5.875% senior unsecured notes ("5.875% Notes") which were repaid during the nine months ended September 30, 2021;

•a decrease in share repurchases of our Common Stock of ~~$531~~$786 million during the nine months ended September 30, 2022; and

Table of Contents

•settlement of a forward-starting interest rate swap of $72 million, which did not recur in the current year;

partially offset by:

•a decrease in net borrowings on short-term debt of $260 million, primarily due to borrowing under the senior unsecured revolving credit facility to repay the 5.875% Notes which matured during the nine months ended September 30, 2021; and

•a ~~settlement~~payment of ~~a forward-starting interest rate swap on August 2, 2021 resulting in a payment to the counterparty of $72 million;~~

~~partially offset by:~~

•~~an increase in net proceeds from long-term debt of $236~~$63 million primarily due to the issuance of $400 million in principal amount of 1.400% senior unsecured notes due August 5, 2026 (the "1.400% Notes") and the issuance of €500 million in principal amount of 0.625% senior unsecured notes due September 10, 2028 (the "0.625% Notes"), partially offset by the maturity and repayment in full of the 5.875% senior unsecured notes (the "5.875% Notes") and tender offer for 1.125% senior unsecured notes due September 26, 2023 (the "1.125% Notes") during the nine months ended September 30, ~~2021, as discussed below.~~2022 for fees related to a bridge facility commitment letter with Bank of America, N.A. ("Bank of America") pursuant to which Bank of America has committed to provide, subject to the terms and conditions set therein, a 364-day $11.0 billion senior unsecured bridge term loan facility (the "Bridge Facility").

Debt and Other Obligations

On ~~August~~March 18, 2022, we entered into a term loan credit agreement (the "March 2022 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 amount equal to $500 million and a tranche of delayed-draw term loans due 5 ~~2021,~~years from issuance in an amount equal to $1.0 billion. On September 16, 2022, Celanese, Celanese U.S. ~~completed~~and certain subsidiaries entered into an ~~offering~~additional term loan credit agreement (the "September 2022 Term Loan Credit Agreement" and, together with the March 2022 Term Loan Credit Agreement, the "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 (the term loans represented by the Term Loan Credit Agreements collectively, the "Term Loan Facility"). The Term Loan Facility is guaranteed by Celanese and domestic subsidiaries representing substantially all of ~~$400 million in principal amount~~our U.S. assets and business operations.

On March 18, 2022, we entered into a new revolving credit agreement (the "New Revolving Credit Agreement" and, together with the Term Loan Credit Agreements the "Credit Agreements") consisting of ~~1.400% Notes in~~ a ~~public offering registered under the Securities Act. Net proceeds from the sale of the 1.400% Notes were used to repay $396 million of outstanding borrowings under the~~$1.75 billion senior unsecured revolving credit facility (with a letter of credit sublimit), maturing in 2027. The proceeds of a $365 million borrowing under the new senior unsecured revolving credit facility were used to repay and terminate our existing revolving credit facility.

On July 14, 2022 and July 19, 2022, Celanese U.S. completed the offerings of the Acquisition USD Notes and Acquisition Euro Notes, respectively. Fees and expenses of the offering of the Acquisition Notes, inclusive of underwriting discounts, were $65 million.

The entry into the Term Loan Credit Agreements and the offerings of the Acquisition Notes reduced availability under the Bridge Facility to zero, and we terminated the Bridge Facility. During the nine months ended September 30, 2022, the Company paid $66 million in fees related to the Bridge Facility commitment, amortizing these fees to interest expense.

The Term Loan Facility, subject to the terms and conditions set forth in the Term Loan Credit Agreements, together with the Acquisition Notes and additional debt financing, will be available to finance the M&M Acquisition, and to pay fees and expenses related thereto.

On November 1, 2022, we borrowed $300 million under our senior unsecured revolving credit facility for general corporate ~~purposes.~~

~~On September 10, 2021, Celanese U.S. completed an offering~~purposes, reducing availability of ~~€500 million in principal amount of 0.625% Notes due September 10, 2028 in a public offering registered~~borrowings under the ~~Securities Act.~~facility to $1.45 billion.

See ~~Table of Contents~~Note 3 - Acquisitions, Dispositions and Plant Closures

~~On September 13, 2021, Celanese U.S. completed a cash tender offer~~ and Note 7 - Debt in the accompanying unaudited interim consolidated financial statements for €300 million in principal amount of 1.125% Notes at a purchase price of €1,027.35 per €1,000 of principal amount plus accrued interest, for a total principal and premium payment of $363 million plus accrued interest of $4 million. A portion of the proceeds from the issuance of the 0.625% Notes were used to fund the tender offer for €300 million of the 1.125% Notes. As a result of the tender offer, the carrying value of the 1.125% Notes were reduced by $353 million.further information.

There have been no material changes to our debt or other obligations described in our ~~2020~~2021 Form 10-K other than those disclosed above and in Note 87 - Debt in the accompanying unaudited interim consolidated financial statements.

Accounts Receivable Purchasing Facility

OnIn June ~~18,~~ 2021, 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 ~~$812~~$802 million and ~~$595 million~~$1.1 billion of accounts receivable under this agreement for the nine months ended September 30, ~~2021~~2022 and twelve months ended December 31, ~~2020,~~2021, respectively, and collected ~~$812~~$802 million and ~~$476 million~~$1.1 billion of accounts receivable sold under this agreement during the same periods. Unsold U.S. accounts receivable of ~~$116~~$130 million were pledged by the SPE as collateral to the Purchasers as of September 30, ~~2021.~~2022.

Table of Contents

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 ~~$134~~$228 million and ~~$233~~$230 million of accounts receivable under these factoring agreements for the nine months ended September 30, ~~2021~~2022 and twelve months ended December 31, ~~2020,~~2021, respectively, and collected ~~$133~~$234 million and ~~$237~~$185 million of accounts receivable sold under these factoring agreements during the same periods.

In March 2021, we entered into an agreement in Singapore with a financial institution to discount, on a non-recourse basis, documentary credits or other documents recorded as accounts receivable. We de-recognized ~~$57~~$41 million and $70 million of accounts receivable under this agreement for the nine months ended September 30, ~~2021.~~2022 and twelve months ended December 31, 2021, respectively.

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 8 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 ~~Parent Guarantor and Subsidiary Guarantors represent substantially all of our U.S. assets and business operations. 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 Credit ~~Agreement~~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 Credit Agreement, 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. While the Credit Agreement and the Indentures generally limit the ability of our subsidiaries to restrict payment of dividends or other distributions to us, these limitations are subject to certain qualifications and exceptions, which may have the effect of significantly limiting the applicability of those restrictions.

~~Table of Contents~~

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, Credit Agreement, 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.

Table of Contents


			Nine Months Ended September 30, ~~2021~~2022
			(In $ millions)
			(unaudited)
Net sales to third parties			~~1,263~~1,550
Net sales to non-guarantor subsidiaries			~~671~~743
Total net sales			~~1,934~~2,293
Gross profit			~~293~~379
Earnings (loss) from continuing operations			77 (218)
Net earnings (loss)			58 (222)
Net earnings (loss) attributable to the Obligor Group			58 (222)


		As of September 30, 2021	As of December 31, 2020		As of September 30, 2022	As of December 31, 2021
		(In $ millions)			(In $ millions)
		(unaudited)			(unaudited)
Receivables from non-guarantor subsidiaries	Receivables from non-guarantor subsidiaries	370	318	Receivables from non-guarantor subsidiaries	511	624
Other current assets	Other current assets	1,360	1,597	Other current assets	10,139	1,236
Total current assets	Total current assets	1,730	1,915	Total current assets	10,650	1,860
Goodwill	Goodwill	405	399	Goodwill	578	578
Other noncurrent assets	Other noncurrent assets	3,788	3,519	Other noncurrent assets	2,892	2,584
Total noncurrent assets	Total noncurrent assets	4,193	3,918	Total noncurrent assets	3,470	3,162
Current liabilities due to non-guarantor subsidiaries	Current liabilities due to non-guarantor subsidiaries	2,329	1,206	Current liabilities due to non-guarantor subsidiaries	3,097	2,493
Current liabilities due to affiliates	Current liabilities due to affiliates	77	58	Current liabilities due to affiliates	15	64
Other current liabilities	Other current liabilities	650	958	Other current liabilities	1,721	1,347
Total current liabilities	Total current liabilities	3,056	2,222	Total current liabilities	4,833	3,904
Noncurrent liabilities due to non-guarantor subsidiaries	Noncurrent liabilities due to non-guarantor subsidiaries	1,588	1,593	Noncurrent liabilities due to non-guarantor subsidiaries	2,316	2,348
Other noncurrent liabilities	Other noncurrent liabilities	4,168	3,648	Other noncurrent liabilities	11,902	3,610
Total noncurrent liabilities	Total noncurrent liabilities	5,756	5,241	Total noncurrent liabilities	14,218	5,958

Share Capital

~~On July 14, 2021, our Board of Directors approved a $1.0 billion increase in our Common Stock repurchase authorization.~~ We ~~also~~ declared a quarterly cash dividend of ~~$0.68~~$0.70 per share on our Common Stock on October ~~20, 2021,~~19, 2022, amounting to ~~$74~~$76 million.

There have been no material changes to our share capital described in our ~~2020~~2021 Form 10-K other than those disclosed above and in Note 11 10 - Stockholders' 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 ~~2020~~2021 Form 10-K.

~~Table of Contents~~

Tax Return Audits

Our tax returns are under joint audit for the years 2013 through 2015 by the United States, ~~the~~ Netherlands and Germany (the "Authorities").

On In September ~~30,~~ 2021, we received a draft joint audit report proposing adjustments to transfer pricing and the reallocation of income between the related jurisdictions. The Authorities also propose to apply these adjustments to open tax years through 2019. We are engaged in discussions with the Authorities to evaluate the ~~proposals and~~proposals. During the three months ended September 30, 2022, we recorded additional tax reserves of $25 million for years prior to 2022 based on unilateral discussions with one of the relevant authorities. We are currently evaluating all additional potential remedies. See Note 11 - Income Taxes in the accompanying unaudited interim consolidated financial statements for further information.

Table of Contents

Business Environment

We ~~believe that an adequate provision for income taxes has been made for all open tax years~~continue to experience significant cost inflation, inflationary pressure and supply disruptions related to the ~~examination. However,~~sourcing of raw materials, energy, logistics and labor in 2022. We continue to closely monitor the ~~outcome~~impact of, ~~tax audits cannot~~and responses to, COVID-19 variants, including government imposed lockdowns in China and elsewhere, and geopolitical effects on demand conditions and the supply chain. Demand conditions across certain regions in the Western Hemisphere and China have deteriorated, creating uncertainty, impacting consumer activity and driving customer destocking. Average prices of energy feedstocks, particularly natural gas, which are a significant input and source of energy for our manufacturing operations, have continued to increase in the Western Hemisphere and particularly in Europe. We also experienced cost pressure on raw material inputs. We have continued pricing actions intended to offset these inflationary headwinds. Continued moderation of acetyls pricing is expected to trend to more normalized levels through the end of 2022. We expect that sourcing costs and inflationary pressures will continue to be ~~predicted with certainty. If any issues raised by~~significant across the ~~Authorities are resolved~~business throughout the rest of the year.

We continue to monitor and respond to the situation in Ukraine. While the conflict has not had a material impact on our business, financial condition or results of operations to date, we have experienced shortages in materials and increased costs for transportation, energy and raw materials as well as other supply chain challenges, particularly in Europe, due in part to the effects of the conflict, and government responses thereto, including sanctions, on the global economy. We continue to monitor these developments.

Following Russia's invasion, we have suspended sales into Russia, Belarus and the sanctioned regions of Ukraine. Revenue from these countries and regions constituted less than 1% of our consolidated Net sales in fiscal year 2021 and we have no manufacturing assets in these countries or regions.

We do not currently expect the situation to result in a ~~manner inconsistent with~~material impact on our ~~expectations~~business or financial results, but the full impact of the conflict remains uncertain and will depend on future geopolitical and economic developments that are impossible to predict. Potential risks we ~~are unsuccessful~~may face include increased volatility in ~~defending our position, we could be required~~capital and commodity markets, rapid changes to ~~adjust our provision for income taxes in~~sanctions, continued supply chain and transportation disruptions, exacerbation of inflationary conditions, impacts to consumer or business sentiment and an increased risk of cyber security incidents as well as 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.~~

~~Off-Balance Sheet Arrangements~~

~~We have not entered into any material off-balance sheet arrangements.~~impacts referenced above.

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 U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the unaudited interim consolidated financial statements and the reported amounts of ~~net~~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 ~~2020~~2021 Form 10-K. We discuss our critical accounting policies and estimates in MD&A in our ~~2020~~2021 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 ~~2020~~2021 Form 10-K. See also Note 14 12 - 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.

4851

Table of Contents

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 30, ~~2021,~~2022, 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

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.

4952

Table of Contents

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

The Company is involved in legal and regulatory proceedings, lawsuits, claims and 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, 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 10 9 -Environmental and Note 16 14 -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 ~~2020~~2021 Form 10-K other than those disclosed in Note 10 9 - Environmental and Note 16 14 - Commitments and Contingencies in the accompanying unaudited interim consolidated financial statements. See Part I - Item 1A. Risk Factors of our ~~2020~~2021 Form 10-K for certain risk factors relating to these legal proceedings.

Item 1A. Risk Factors

~~There have been no material changes to the~~Additional risk factors ~~under~~are described below and should be read in conjunction with Part I, Item 1A of our ~~2020~~2021 Form 10-K.

Risks Relating to the acquisition of the majority of the Mobility & Materials business (the "M&M Acquisition" and such business being acquired, the "M&M Business") of DuPont de Nemours, Inc. ("DuPont")

We have made certain assumptions relating to the M&M Acquisition which may prove to be materially inaccurate and we may fail to realize all of the anticipated benefits of the acquisition.

We have made certain assumptions relating to the M&M Acquisition, which may prove to be inaccurate. Our failure to identify or understand the magnitude of the problems, liabilities or other challenges associated with the M&M Acquisition could result in incorrect expectations of future results and increased risk of unanticipated or unknown issues or liabilities. Our mitigation strategies for such risks that are identified may be ineffective. These assumptions relate to numerous matters, including:

•general economic and business conditions, and performance of the M&M Business against this backdrop;

•potential unknown liabilities and unforeseen delays or regulatory conditions associated with the M&M Acquisition;

•faulty assumptions or incorrect expectations regarding the process of integrating the M&M Business with ours, including unanticipated delays, costs or inefficiencies;

•the anticipated benefits and synergies, including timing for when such benefits and synergies may be realized through combining the M&M Business with ours;

•the amount of attention and resources needed to successfully align our and the M&M Business's practices and operations which may disrupt our business, including challenges relating to integrating commercial activities, technologies, procedures, policies, retaining key personnel and addressing differences in the business cultures of our business and the M&M Business;

•the complexities associated with managing the combined businesses;

•potential increases in the challenges and risks, including commercial and financial risks, associated with our broader international business footprint, and increased exposure to certain end markets and geographies, as a result of the M&M Acquisition which will expand our presence to markets in which we may not have previously done business; and

•other financial and strategic risks of the M&M Acquisition.

Table of Contents

We cannot guarantee that we will achieve our goals or meet our expectations with respect to the M&M Acquisition. Through our review to-date since the November 1, 2022 closing, we have learned that for the remainder of 2022 the M&M Business is expected to underperform prior expectations, and its financial performance from signing through the closing has been lower than anticipated. We cannot be certain when we will be able to realize improvements in the underlying M&M Business performance and as we proceed with integration, we may identify additional risks and challenges. The benefits of the M&M Acquisition, including the anticipated financial benefits and the synergies and growth opportunities, may not be realized as expected or may not be achieved within the anticipated timeframe, or at all. If our assumptions are inaccurate or we are unable to meet our expectations (including our expectations regarding financial targets), our business, financial performance and operating results could be materially and adversely affected.

Financing the M&M Acquisition has resulted in an increase in our indebtedness, which could adversely affect us, including by decreasing our business flexibility and increasing our interest expense.

The increase in our indebtedness to finance the M&M Acquisition may, among other things, reduce our flexibility to respond to changing business and economic conditions or to fund capital expenditures or working capital needs. In addition, the amount of cash required to pay interest on our increased indebtedness, and thus the demands on our cash resources, has materially increased as a result of the indebtedness to finance the M&M Acquisition.

We will incur direct and indirect costs as a result of the M&M Acquisition.

We have incurred and expect to continue to incur a number of non-recurring costs associated with negotiating and completing the M&M Acquisition, combining the operations of our business and the M&M Business and achieving desired synergies. These fees and costs have been, and will continue to be, substantial. Non-recurring expenses include, among others, employee retention costs, fees paid to financial, legal, integration and accounting advisors, severance and benefit costs. We will also incur transaction fees and costs related to formulating and implementing integration plans, including facilities and systems consolidation costs and employment-related costs. We will continue to assess the magnitude of these costs, and additional unanticipated costs may be incurred in the M&M Acquisition and the integration of the M&M Business into our business. Although we expect that the elimination of duplicative costs, as well as the realization of other efficiencies related to the integration of the M&M Business, should allow us to offset integration-related costs over time, this net benefit may not be achieved in the near term, or at all. The costs described above, as well as other unanticipated costs and expenses, could have a material adverse effect on our financial condition and results of operations following the completion of the M&M Acquisition. Factors beyond our control could affect the total amount or timing of these expenses, many of which, by their nature, are difficult to estimate accurately.

The risk of non-compliance with non-U.S. laws, regulations and policies could adversely affect our results of operations, financial condition or strategic objectives.

The M&M Acquisition will introduce us into a number of new geographic markets, subjecting us to additional non-U.S. laws, regulations and policies which do not currently apply to us, and will increase our exposure to certain other geographic markets as well as their laws and regulations. These laws and regulations are complex, change frequently, have become more stringent over time, could increase our cost of doing business, and could result in conflicting legal requirements. These laws and regulations include international labor and employment laws, environmental regulations and reporting requirements, data privacy requirements, and local laws prohibiting corrupt payments to government officials, antitrust and other regulatory laws. We will be subject to the risk that we, our employees, our agents, or our affiliated entities, or their respective officers, directors, employees and agents, may take actions determined to be in violation of any of these laws, regulations or policies, for which we might be held responsible. Actual or alleged violations could result in substantial fines, sanctions, civil or criminal penalties, debarment from government contracts, curtailment of operations in certain jurisdictions, competitive or reputational harm, litigation or regulatory action and other consequences that might adversely affect our results of operations, financial condition or strategic objectives.

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 30, ~~2021 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, 2021 96,594 $ 155.96 96,594 $ 1,548,000,000
August 1 - 31, 2021 922,143 $ 157.36 922,143 $ 1,403,000,000
September 1 - 30, 2021 919,442 $ 152.09 919,442 $ 1,263,000,000
Total 1,938,179 1,938,179

~~(1)May include shares withheld from employees to cover their withholding requirements for personal income taxes related to the vesting of restricted stock.~~

~~(2)~~2022. As of September 30, ~~2021,~~2022, our Board of Directors had authorized the repurchase of $6.9 billion of our Common Stock since February ~~2008.~~

2008, with approximately $1.1 billion value of shares remaining that may be purchased under the program. See Note 11 10 -Stockholders' Equity in the accompanying unaudited interim consolidated financial statements for further information.

Table of Contents

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

~~None.~~On November 2, 2022, the Company's Board of Directors adopted and approved, effective immediately, amended and restated by-laws (as amended and restated, the "Seventh Amended and Restated By-laws") of the Company. The Seventh Amended and Restated By-laws, among other things:

•revise procedures and disclosure requirements for stockholders to provide notice of the nomination of directors (outside of "proxy access") and the submission of proposals for consideration at meetings of the stockholders of the Company;

•clarify the power of the Board to set rules and procedures for, postpone, reschedule or cancel any meeting of stockholders previously scheduled, and clarify the power of the chair of a stockholder meeting to adjourn any meeting of stockholders,

•clarify the powers of the Board and the chair of a stockholder meeting to establish rules for the conduct of any meeting of stockholders;

•revise the majority voting provision to clarify when an election will be deemed contested; and

•make certain other administrative, modernizing, clarifying and conforming changes, including making updates to reflect recent amendments to the Delaware General Corporation Law.

The foregoing description of the Seventh Amended and Restated By-laws is not complete and is qualified in its entirety by reference to the complete text of the Seventh Amended and Restated By-laws, which is filed as Exhibit 3.2 hereto and are incorporated herein by reference.

5055

Table of Contents

Item 6. Exhibits(1)


Exhibit Number
						Description

2.1						Transaction Agreement, dated as of February 17, 2022, by and among DuPont De Nemours, Inc., DuPont E&I Holding, Inc. and Celanese Corporation (incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K filed with the SEC on 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).

3.1(b)						Certificate of Amendment to the Second Amended and Restated 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 September 17, 2018).

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~~3.2*						~~Sixth~~Seventh Amended and Restated By-laws, amended effective ~~July 15, 2019 (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed with the SEC on July 18, 2019).~~November 2, 2022.

4.1						~~Tenth~~Twelfth Supplemental Indenture, dated as of ~~August 5, 2021,~~July 14, 2022, among Celanese US Holdings LLC, Celanese Corporation, the subsidiary guarantors party thereto, U.S. Bank Trust Company, National Association, as series trustee and Computershare Trust Company, N.A. (as successor trustee to Wells Fargo Bank, National ~~Association,~~Association), as base trustee (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K filed with the SEC on ~~August 5, 2021)~~July 14, 2022).

4.2						~~Eleventh~~Thirteenth Supplemental Indenture, dated as of ~~September 10, 2021,~~July 19, 2022, among Celanese US Holdings LLC, Celanese Corporation, the subsidiary guarantors party thereto, U.S. Bank Trust Company, National Association, as series trustee, registrar and transfer agent, Computershare Trust Company, N.A. (as successor trustee to Wells Fargo Bank, National ~~Association,~~Association), as base trustee, and ~~Deutsche Bank Trust Company Americas,~~Elavon Financial Services DAC, UK Branch, as paying ~~agent, registrar and transfer~~ agent (incorporated by reference to Exhibit 4.2 to the ~~Current Report~~current report on Form 8-K filed with the SEC on ~~September 10, 2021)~~July 19, 2022).

22.1*						List of Guarantor Subsidiaries.

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 - 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						The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, ~~2021~~2022 has been formatted in Inline XBRL.

Table of Contents

* 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.

5157

Table of Contents

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

By:

/s/ LORI J. RYERKERK

Lori J. Ryerkerk

Chairman of the Board of Directors,

Chief Executive Officer and President

Date:

~~October 22, 2021~~November 4, 2022

By:

/s/ SCOTT A. RICHARDSON

Scott A. Richardson

Executive Vice President and

Chief Financial Officer

Date:

~~October 22, 2021~~November 4, 2022

5258


	As of September 30, 2021	Total Expected 2021
	(In $ millions)
Cash contributions to defined benefit pension plans	17	23
Benefit payments to nonqualified pension plans	16	20
Benefit payments to other postretirement benefit plans	3	4
Cash contributions to German multiemployer defined benefit pension plans(1)	6	9


	Foreign Currency Translation Gain (Loss)	Gain (Loss) on Cash Flow Hedges (Note 14)	Pension and Postretirement Benefits Gain (Loss) (Note 9)	Accumulated Other Comprehensive Income (Loss), Net
	(In $ millions)
As of December 31, 2020	(260)	(56)	(12)	(328)
Other comprehensive income (loss) before reclassifications	3	43	(4)	42
Amounts reclassified from accumulated other comprehensive income (loss)	—	(2)	—	(2)
Income tax (provision) benefit	(15)	(25)	—	(40)
As of September 30, 2021	(272)	(40)	(16)	(328)


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, 2021	96,594	$	155.96	96,594	$	1,548,000,000
August 1 - 31, 2021	922,143	$	157.36	922,143	$	1,403,000,000
September 1 - 30, 2021	919,442	$	152.09	919,442	$	1,263,000,000
Total	1,938,179			1,938,179