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 March 31, ~~2021~~2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-34726

LYONDELLBASELL INDUSTRIES N.V.

(Exact name of registrant as specified in its charter)

Netherlands

98-0646235

(State or other jurisdiction of
incorporation or organization)

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

1221 McKinney St.,

4th Floor, One Vine Street

Suite 300

London

Delftseplein 27E

Houston,

Texas

W1J0AH

3013AA

Rotterdam

USA

77010

United Kingdom

Netherlands

(Addresses of registrant’s principal executive offices)


						(713)						309-7200									+44 (0)						207			220 2600									+31 (0)						10			2755 500

(Registrant’s telephone numbers, including area codes)

(Former name, former address and former fiscal year, if changed since last report)

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

Title of Each Class

Trading Symbol

Name of Each Exchange On Which Registered

Ordinary Shares, €0.04 Par Value

LYB

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 x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x 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,” and “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	x	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 x

The registrant had ~~334,353,962~~327,621,817 ordinary shares, €0.04 par value, outstanding at April ~~28, 2021~~27, 2022 (excluding ~~5,691,666~~12,647,650 treasury shares).

Table of Contents

LYONDELLBASELL INDUSTRIES N.V.

TABLE OF CONTENTS

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PART I. FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

LYONDELLBASELL INDUSTRIES N.V.

CONSOLIDATED STATEMENTS OF INCOME


		Three Months Ended March 31,						Three Months Ended March 31,
Millions of dollars, except earnings per share	Millions of dollars, except earnings per share		2021		2020		Millions of dollars, except earnings per share		2022		2021
Sales and other operating revenues:	Sales and other operating revenues:						Sales and other operating revenues:
Trade	Trade		$	8,851	$	7,303	Trade		$	12,840	$	8,851
Related parties	Related parties		231		191		Related parties		317		231
			9,082		7,494				13,157		9,082
Operating costs and expenses:	Operating costs and expenses:						Operating costs and expenses:
Cost of sales	Cost of sales		7,678		6,868		Cost of sales		11,136		7,678

Selling, general and administrative expenses	Selling, general and administrative expenses		287		295		Selling, general and administrative expenses		328		287
Research and development expenses	Research and development expenses		29		27		Research and development expenses		32		29
			7,994		7,190				11,496		7,994
Operating income	Operating income		1,088		304		Operating income		1,661		1,088
Interest expense	Interest expense		(110)		(89)		Interest expense		(74)		(110)
Interest income	Interest income		2		3		Interest income		2		2
Other income, net	Other income, net		25		0		Other income, net		19		25
Income from continuing operations before equity investments and income taxes	Income from continuing operations before equity investments and income taxes		1,005		218		Income from continuing operations before equity investments and income taxes		1,608		1,005
Income from equity investments	Income from equity investments		137		0		Income from equity investments		29		137
Income from continuing operations before income taxes	Income from continuing operations before income taxes		1,142		218		Income from continuing operations before income taxes		1,637		1,142
Provision for income taxes	Provision for income taxes		70		75		Provision for income taxes		316		70
Income from continuing operations	Income from continuing operations		1,072		143		Income from continuing operations		1,321		1,072
(Loss) income from discontinued operations, net of tax			(2)		1
Loss from discontinued operations, net of tax							Loss from discontinued operations, net of tax		(1)		(2)
Net income	Net income		1,070		144		Net income		1,320		1,070

Dividends on redeemable non-controlling interests	Dividends on redeemable non-controlling interests		(2)		(2)		Dividends on redeemable non-controlling interests		(2)		(2)
Net income attributable to the Company shareholders	Net income attributable to the Company shareholders		$	1,068	$	142	Net income attributable to the Company shareholders		$	1,318	$	1,068

Earnings per share:	Earnings per share:						Earnings per share:
Net income (loss) attributable to the Company shareholders —	Net income (loss) attributable to the Company shareholders —						Net income (loss) attributable to the Company shareholders —
Basic:
Basic							Basic
Continuing operations	Continuing operations		$	3.20	$	0.42	Continuing operations		$	4.01	$	3.20
Discontinued operations	Discontinued operations		(0.01)		0		Discontinued operations		—		(0.01)
			$	3.19	$	0.42			$	4.01	$	3.19
Diluted:
Diluted							Diluted
Continuing operations	Continuing operations		$	3.19	$	0.42	Continuing operations		$	4.00	$	3.19
Discontinued operations	Discontinued operations		(0.01)		0		Discontinued operations		—		(0.01)
			$	3.18	$	0.42			$	4.00	$	3.18

See Notes to the Consolidated Financial Statements.

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LYONDELLBASELL INDUSTRIES N.V.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended
March 31,
Millions of dollars 2021 2020
Net income $ 1,070 $ 144
Other comprehensive income (loss), net of tax –
Financial derivatives 175 (338)
Unrealized losses on available-for-sale debt securities 0 (2)
Defined benefit pension and other postretirement benefit plans 11 10
Foreign currency translations (107) (199)
Total other comprehensive income (loss), net of tax 79 (529)
Comprehensive income (loss) 1,149 (385)
Dividends on redeemable non-controlling interests (2) (2)
Comprehensive income (loss) attributable to the Company shareholders $ 1,147 $ (387)


	Three Months Ended March 31,
Millions of dollars		2022		2021
Net income		$	1,320	$	1,070
Other comprehensive income (loss), net of tax –
Financial derivatives		88		175

Defined benefit pension and other postretirement benefit plans		5		11
Foreign currency translations		(25)		(107)
Total other comprehensive income, net of tax		68		79
Comprehensive income		1,388		1,149
Dividends on redeemable non-controlling interests		(2)		(2)

Comprehensive income attributable to the Company shareholders		$	1,386	$	1,147

See Notes to the Consolidated Financial Statements.

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LYONDELLBASELL INDUSTRIES N.V.

CONSOLIDATED BALANCE SHEETS

Millions of dollars March 31, 2021 December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents $ 1,452 $ 1,763
Restricted cash 11 2
Short-term investments 383 702
Accounts receivable:
Trade, net 3,796 3,291
Related parties 165 150
Inventories 4,632 4,344
Prepaid expenses and other current assets 1,525 1,382
Total current assets 11,964 11,634
Operating lease assets 1,466 1,492
Property, plant and equipment, at cost 21,631 21,484
Less: Accumulated depreciation (7,241) (7,098)
Property, plant and equipment, net 14,390 14,386
Equity investments 4,794 4,729
Goodwill 1,904 1,953
Intangible assets, net 717 751
Other assets 511 458
Total assets $ 35,746 $ 35,403


Millions of dollars	March 31, 2022		December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	1,785	$	1,472
Restricted cash	9		5
Short-term investments	—		9
Accounts receivable:
Trade, net	5,092		4,565
Related parties	299		243
Inventories	4,979		4,901
Prepaid expenses and other current assets	1,127		1,022
Total current assets	13,291		12,217
Operating lease assets	1,905		1,946
Property, plant and equipment	22,733		22,382
Less: Accumulated depreciation	(8,004)		(7,826)
Property, plant and equipment, net	14,729		14,556
Equity investments	4,743		4,786
Goodwill	1,866		1,875
Intangible assets, net	673		695
Other assets	647		667
Total assets	$	37,854	$	36,742

See Notes to the Consolidated Financial Statements.

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LYONDELLBASELL INDUSTRIES N.V.

CONSOLIDATED BALANCE SHEETS

Millions of dollars, except shares and par value data March 31, 2021 December 31, 2020
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY
Current liabilities:
Current maturities of long-term debt $ 958 $ 8
Short-term debt 682 663
Accounts payable:
Trade 2,703 2,398
Related parties 579 550
Accrued liabilities 1,953 1,883
Total current liabilities 6,875 5,502
Long-term debt 13,785 15,286
Operating lease liabilities 1,199 1,222
Other liabilities 2,554 2,957
Deferred income taxes 2,403 2,332
Commitments and contingencies 0 0
Redeemable non-controlling interests 116 116
Shareholders’ equity:
Ordinary shares, €0.04 par value, 1,275 million shares authorized, 334,313,140
and 334,015,220 shares outstanding, respectively
19 19
Additional paid-in capital 5,993 5,986
Retained earnings 5,158 4,440
Accumulated other comprehensive loss (1,864) (1,943)
Treasury stock, at cost, 5,732,488 and 6,030,408 ordinary shares, respectively (506) (531)
Total Company share of shareholders’ equity 8,800 7,971
Non-controlling interests 14 17
Total equity 8,814 7,988
Total liabilities, redeemable non-controlling interests and equity $ 35,746 $ 35,403


Millions of dollars, except shares and par value data	March 31, 2022		December 31, 2021
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	8	$	6
Short-term debt	141		362
Accounts payable:
Trade	4,238		3,460
Related parties	776		831
Accrued liabilities	2,376		2,571
Total current liabilities	7,539		7,230
Long-term debt	11,175		11,246
Operating lease liabilities	1,610		1,649
Other liabilities	2,215		2,295
Deferred income taxes	2,487		2,334
Commitments and contingencies	0		0
Redeemable non-controlling interests	116		116
Shareholders’ equity:
Ordinary shares, €0.04 par value, 1,275 million shares authorized, 327,644,034 and 329,536,389 shares outstanding, respectively	19		19
Additional paid-in capital	6,056		6,044
Retained earnings	9,514		8,563
Accumulated other comprehensive loss	(1,735)		(1,803)
Treasury stock, at cost, 12,625,433 and 10,675,605 ordinary shares, respectively	(1,156)		(965)
Total Company share of shareholders’ equity	12,698		11,858
Non-controlling interests	14		14
Total equity	12,712		11,872
Total liabilities, redeemable non-controlling interests and equity	$	37,854	$	36,742

See Notes to the Consolidated Financial Statements.

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LYONDELLBASELL INDUSTRIES N.V.

CONSOLIDATED STATEMENTS OF CASH FLOWS


		Three Months Ended March 31,					Three Months Ended March 31,
Millions of dollars	Millions of dollars	2021		2020		Millions of dollars	2022		2021
Cash flows from operating activities:	Cash flows from operating activities:					Cash flows from operating activities:
Net income	Net income	$	1,070	$	144	Net income	$	1,320	$	1,070
Adjustments to reconcile net income to net cash provided by operating activities:	Adjustments to reconcile net income to net cash provided by operating activities:					Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	Depreciation and amortization	335		342		Depreciation and amortization	311		335

Amortization of debt-related costs	Amortization of debt-related costs	5		4		Amortization of debt-related costs	4		5

Share-based compensation	Share-based compensation	19		16		Share-based compensation	18		19
Inventory valuation charges		0		419

Equity investments—	Equity investments—					Equity investments—
Equity income	Equity income	(137)		0		Equity income	(29)		(137)
Distributions of earnings, net of tax	Distributions of earnings, net of tax	20		15		Distributions of earnings, net of tax	34		20
Deferred income tax (benefit) provision		(83)		68

Deferred income tax provision (benefit)						Deferred income tax provision (benefit)	137		(83)

Changes in assets and liabilities that provided (used) cash:	Changes in assets and liabilities that provided (used) cash:					Changes in assets and liabilities that provided (used) cash:
Accounts receivable	Accounts receivable	(593)		4		Accounts receivable	(629)		(593)
Inventories	Inventories	(360)		121		Inventories	(117)		(360)
Accounts payable	Accounts payable	327		(235)		Accounts payable	724		327
Other, net	Other, net	(32)		(356)		Other, net	(271)		(32)
Net cash provided by operating activities	Net cash provided by operating activities	571		542		Net cash provided by operating activities	1,502		571
Cash flows from investing activities:	Cash flows from investing activities:					Cash flows from investing activities:
Expenditures for property, plant and equipment	Expenditures for property, plant and equipment	(340)		(660)		Expenditures for property, plant and equipment	(446)		(340)

Proceeds from maturities of available-for-sale debt securities	Proceeds from maturities of available-for-sale debt securities	74		0		Proceeds from maturities of available-for-sale debt securities	—		74

Proceeds from equity securities	Proceeds from equity securities	226		1		Proceeds from equity securities	8		226

Other, net	Other, net	(19)		(4)		Other, net	(18)		(19)
Net cash used in investing activities	Net cash used in investing activities	(59)		(663)		Net cash used in investing activities	(456)		(59)
Cash flows from financing activities:	Cash flows from financing activities:					Cash flows from financing activities:
Repurchases of Company ordinary shares	Repurchases of Company ordinary shares	0		(4)		Repurchases of Company ordinary shares	(217)		—
Dividends paid - common stock	Dividends paid - common stock	(352)		(351)		Dividends paid - common stock	(371)		(352)
Purchase of non-controlling interest		0		(30)
Issuance of long-term debt		0		500

Repayments of long-term debt	Repayments of long-term debt	(500)		0		Repayments of long-term debt	—		(500)

Issuance of short-term debt		0		500

Net proceeds from commercial paper		0		516
Collateral received from (paid for) interest rate derivatives		66		(238)

Net repayments of commercial paper						Net repayments of commercial paper	(169)		—
Collateral received from interest rate derivatives						Collateral received from interest rate derivatives	51		66

Other, net	Other, net	4		(9)		Other, net	(7)		4
Net cash (used in) provided by financing activities		(782)		884
Net cash used in financing activities						Net cash used in financing activities	(713)		(782)
Effect of exchange rate changes on cash	Effect of exchange rate changes on cash	(32)		(18)		Effect of exchange rate changes on cash	(16)		(32)
(Decrease) increase in cash and cash equivalents and restricted cash		(302)		745
Increase (decrease) in cash and cash equivalents and restricted cash						Increase (decrease) in cash and cash equivalents and restricted cash	317		(302)
Cash and cash equivalents and restricted cash at beginning of period	Cash and cash equivalents and restricted cash at beginning of period	1,765		888		Cash and cash equivalents and restricted cash at beginning of period	1,477		1,765
Cash and cash equivalents and restricted cash at end of period	Cash and cash equivalents and restricted cash at end of period	$	1,463	$	1,633	Cash and cash equivalents and restricted cash at end of period	$	1,794	$	1,463

See Notes to the Consolidated Financial Statements.

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LYONDELLBASELL INDUSTRIES N.V.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

Ordinary Shares Additional
Paid-in
Capital Retained
Earnings Accumulated
Other
Comprehensive
Loss Company
Share of
Shareholders’
Equity Non-
Controlling
Interests
Millions of dollars Issued Treasury
Balance, December 31, 2020 $ 19 $ (531) $ 5,986 $ 4,440 $ (1,943) $ 7,971 $ 17
Net income 0 0 0 1,070 0 1,070 0
Other comprehensive income 0 0 0 0 79 79 0
Share-based compensation 0 25 7 2 0 34 0
Dividends - common stock ($1.05 per share) 0 0 0 (352) 0 (352) 0
Dividends - redeemable non-controlling interests ($15.00 per share) 0 0 0 (2) 0 (2) 0
Sale of non-controlling interest 0 0 0 0 0 0 (3)
Balance, March 31, 2021 $ 19 $ (506) $ 5,993 $ 5,158 $ (1,864) $ 8,800 $ 14

Ordinary Shares Additional
Paid-in
Capital Retained
Earnings Accumulated
Other
Comprehensive
Loss Company
Share of
Shareholders’
Equity Non-
Controlling
Interests
Millions of dollars Issued Treasury
Balance, December 31, 2019 $ 19 $ (580) $ 5,954 $ 4,435 $ (1,784) $ 8,044 $ 19
Net income 0 0 0 144 0 144 0
Other comprehensive loss 0 0 0 0 (529) (529) 0
Share-based compensation 0 25 (11) 1 0 15 0
Dividends - common stock ($1.05 per share) 0 0 0 (351) 0 (351) 0
Dividends - redeemable non-controlling interests ($15.00 per share) 0 0 0 (2) 0 (2) 0
Repurchases of Company ordinary shares 0 (4) 0 0 0 (4) 0
Purchase of non-controlling interest 0 0 7 0 0 7 0
Balance, March 31, 2020 $ 19 $ (559) $ 5,950 $ 4,227 $ (2,313) $ 7,324 $ 19

~~See Notes to the Consolidated Financial Statements.~~

~~Table of Contents~~

~~LYONDELLBASELL INDUSTRIES N.V.~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS~~

~~TABLE OF CONTENTS~~

~~Table of Contents~~

~~LYONDELLBASELL INDUSTRIES N.V.~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS~~

~~1. Basis of Presentation~~

LyondellBasell N.V. is a worldwide manufacturer of chemicals and polymers, a refiner of crude oil, a significant producer of gasoline blending components and a developer and licensor of technologies for the production of polymers.

The accompanying unaudited Consolidated Financial Statements have been prepared from the books and records of LyondellBasell N.V. in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial information. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States (“U.S. GAAP”) for complete financial statements. In our opinion, all adjustments, including normal recurring adjustments, considered necessary for a fair statement have been included. The results for interim periods are not necessarily indicative of results for the entire year. These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

~~2. Accounting and Reporting Changes~~

~~Recently Adopted Guidance~~

~~The following table provides a brief description of recently adopted Accounting Standard Updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”):~~

~~Standard~~

~~Description~~

~~ASU 2020-01,~~ ~~Clarifying the Interactions between Topic 321, Topic 323, Equity Method and Joint Ventures, and Topic 815, Derivatives and Hedging~~

This guidance clarifies that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321 and includes scope considerations for entities that hold certain non-derivative forward contracts and purchased options to acquire equity securities that, upon settlement of the forward contract or exercise of the purchase option, would be accounted for under the equity method of accounting. This guidance is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years.

~~The prospective adoption of this guidance from January 1, 2021 did not have a material impact on our Consolidated Financial Statements.~~

~~ASU 2020-06,~~ ~~Debt - Debt with Conversion and Other Options and Derivatives and Hedging - Contracts in Entity’s Own Equity~~

This guidance simplifies the accounting for convertible instruments and the application of the derivatives scope exception for contracts in an entity’s own equity. The standard also amends the accounting for convertible instruments in the diluted earnings per share calculation and requires enhanced disclosures of convertible instruments and contracts in an entity’s own equity. The guidance is effective for fiscal years beginning after December 15, 2021 and may be applied on a modified or fully retrospective basis.

~~The early adoption of this guidance on a modified retrospective basis from January 1, 2021 did not have a material impact on our Consolidated Financial Statements.~~

~~Table of Contents~~

~~LYONDELLBASELL INDUSTRIES N.V.~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)~~

~~Standard~~

~~Description~~

~~ASU 2020-09,~~ ~~Debt (Topic 470): Amendments to SEC Paragraphs Pursuant to SEC Release No. 33-10762~~

This guidance amends and supersedes SEC paragraphs in the Accounting Standards Codification to reflect the issuance of SEC Release No. 33-10762 related to financial disclosure requirements for subsidiary issuers and guarantors of registered debt securities and affiliates whose securities are pledged as collateral for registered securities. The guidance is effective for annual and interim periods ending after January 4, 2021.

~~The adoption of this guidance from January 1, 2021 did not have a material impact on our Consolidated Financial Statements.~~

~~Accounting Guidance Issued But Not Adopted as of March 31, 2021~~

~~There are no ASUs issued and not yet adopted that could have a material impact on our Consolidated Financial Statements.~~

~~3. Revenues~~

~~Contract Balances—~~Contract liabilities were $185 million and $194 million at March 31, 2021 and December 31, 2020, respectively. Revenue recognized in each reporting period, included in the contract liability balance at the beginning of the period, was immaterial.

~~Disaggregation of Revenues—The following table presents our revenues disaggregated by key products:~~

Three Months Ended
March 31,
Millions of dollars 2021 2020
Sales and other operating revenues:
Olefins and co-products $ 1,091 $ 667
Polyethylene 2,153 1,459
Polypropylene 1,718 1,101
Propylene oxide and derivatives 502 464
Oxyfuels and related products 607 707
Intermediate chemicals 578 544
Compounding and solutions 1,038 912
Advanced polymers 231 181
Refined products 993 1,336
Other 171 123
Total $ 9,082 $ 7,494

~~Table of Contents~~

~~LYONDELLBASELL INDUSTRIES N.V.~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)~~

~~The following table presents our revenues disaggregated by geography, based upon the location of the customer:~~

Three Months Ended
March 31,
Millions of dollars 2021 2020
Sales and other operating revenues:
United States $ 4,086 $ 3,187
Germany 765 641
China 560 243
Italy 378 335
France 290 270
Poland 270 224
The Netherlands 270 212
Mexico 247 380
Japan 230 335
Other 1,986 1,667
Total $ 9,082 $ 7,494

~~4. Accounts Receivable~~

~~Our accounts receivable are reflected in the Consolidated Balance Sheets net of allowance for credit losses of $15 million at March 31, 2021 and December 31, 2020.~~

~~5. Inventories~~

~~Inventories consisted of the following components:~~

Millions of dollars March 31, 2021 December 31, 2020
Finished goods $ 2,733 $ 2,816
Work-in-process 184 144
Raw materials and supplies 1,715 1,384
Total inventories $ 4,632 $ 4,344

Our inventories are stated at the lower of cost or market (“LCM”). Cost is determined using the last-in, first-out (“LIFO”) inventory valuation methodology, which means that the most recently incurred costs are charged to cost of sales and inventories are valued at the earliest acquisition costs. Market is determined based on an assessment of the current estimated replacement cost and selling price of the inventory. In periods where the market price of our inventory declines substantially, cost values of inventory may be higher than the market value, and as a result we adjust the value of inventory to market value. Fluctuations in the prices of crude oil, natural gas and correlated products from period to period may result in the recognition of charges to adjust the value of inventory to the LCM in periods of falling prices and the reversal of those charges in subsequent interim periods, within the fiscal year, as market prices recover.

During the first three months of 2020, we recognized an LCM inventory valuation charge of $419 million related to the decline in pricing for many of our raw material and finished goods inventories since December 31, 2019.

~~Table of Contents~~

~~LYONDELLBASELL INDUSTRIES N.V.~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)~~

~~6. Debt~~

~~Long-term loans, notes and other debt, net of unamortized discount and debt issuance cost, consisted of the following:~~

Millions of dollars March 31, 2021 December 31, 2020
Senior Notes due 2024, $1,000 million, 5.75% ($4 million of debt issuance cost) $ 996 $ 996
Senior Notes due 2055, $1,000 million, 4.625% ($15 million of discount; $11 million of debt issuance cost) 974 974
Term Loan due 2022, $4,000 million ($1 million of debt issuance cost) 949 1,448
Guaranteed Notes due 2023, $750 million, 4.0% ($3 million of discount; $1 million of debt issuance cost) 746 745
Guaranteed Floating Rate Notes due 2023, $650 million ($3 million of debt issuance cost) 647 646
Guaranteed Notes due 2025, $500 million, 2.875% ($4 million of debt issuance cost) 496 496
Guaranteed Notes due 2025, $500 million, 1.25% ($1 million of discount; $4 million of debt issuance cost) 495 495
Guaranteed Notes due 2026, €500 million, 0.875% ($2 million of discount; $3 million of debt issuance cost) 583 608
Guaranteed Notes due 2027, $1,000 million, 3.5% ($7 million of discount; $5 million of debt issuance cost) 1,086 1,090
Guaranteed Notes due 2027, $300 million, 8.1% 300 300
Guaranteed Notes due 2030, $500 million, 3.375% ($1 million of discount; $4 million of debt issuance cost) 495 495
Guaranteed Notes due 2030, $500 million, 2.25% ($4 million of discount; $4 million of debt issuance cost) 492 492
Guaranteed Notes due 2031, €500 million, 1.625% ($6 million of discount; $4 million of debt issuance cost) 577 602
Guaranteed Notes due 2040, $750 million, 3.375% ($2 million of discount; $8 million of debt issuance cost) 740 740
Guaranteed Notes due 2043, $750 million, 5.25% ($20 million of discount; $7 million of debt issuance cost) 723 723
Guaranteed Notes due 2044, $1,000 million, 4.875% ($10 million of discount; $9 million of debt issuance cost) 981 981
Guaranteed Notes due 2049, $1,000 million, 4.2% ($15 million of discount; $10 million of debt issuance cost) 975 975
Guaranteed Notes due 2050, $1,000 million, 4.2% ($6 million of discount; $10 million of debt issuance cost) 984 984
Guaranteed Notes due 2051, $1,000 million, 3.625% ($3 million of discount; $11 million of debt issuance cost) 986 986
Guaranteed Notes due 2060, $500 million, 3.8% ($4 million of discount; $6 million of debt issuance cost) 490 490
Other 28 28
Total 14,743 15,294
Less current maturities (958) (8)
Long-term debt $ 13,785 $ 15,286

~~Table of Contents~~

~~LYONDELLBASELL INDUSTRIES N.V.~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)~~

~~Fair value hedging adjustments associated with the fair value hedge accounting of our fixed-for-floating interest rate swaps for the applicable periods are as follows:~~

Gains (Losses) Cumulative Fair Value
Hedging Adjustments Included
in Carrying Amount of Debt
Inception
Year Three Months Ended
March 31, March 31, December 31,
Millions of dollars 2021 2020 2021 2020
Senior Notes due 2021, 6.0% 2016 $ 0 $ (16) $ 0 $ 0
Guaranteed Notes due 2027, 3.5% 2017 4 (80) (98) (102)
Guaranteed Notes due 2022, 1.875% 2018 0 1 0 0
Guaranteed Notes due 2026, 0.875% 2020 1 0 (1) (2)
Total $ 5 $ (95) $ (99) $ (104)

~~Fair value adjustments are recognized in Interest expense in the Consolidated Statements of Income.~~

~~Short-term loans, notes and other debt consisted of the following:~~

Millions of dollars March 31, 2021 December 31, 2020
U.S. Receivables Facility $ 0 $ 0
Commercial paper 500 500
Precious metal financings 162 140
Other 20 23
Total Short-term debt $ 682 $ 663

~~Long-Term Debt~~

~~Senior Revolving Credit Facility~~—Our $2,500 million Senior Revolving Credit Facility, of which $2,440 million expires in June 2023 and the remainder expires in June 2022, may be used for dollar and euro denominated borrowings. The facility has a $500 million sub-limit for dollar and euro denominated letters of credit, a $1,000 million uncommitted accordion feature, and supports our commercial paper program. Borrowings under the facility bear interest at either a base rate or LIBOR rate, plus an applicable margin. Additional fees are incurred for the average daily unused commitments. At March 31, 2021, we had 0 borrowings or letters of credit outstanding and $2,005 million of unused availability under this facility.

~~Term Loan due 2022~~—In March 2019, LYB Americas Finance Company LLC (“LYB Americas Finance”), a wholly owned subsidiary of LyondellBasell Industries N.V., entered into a $4,000 million senior unsecured delayed draw term loan credit facility that matures in March 2022. Borrowings under the credit agreement were available through December 31, 2019, subsequent to which no further borrowings may be made under the agreement. Outstanding borrowings bear interest at either a base rate or LIBOR rate, as defined, plus in each case, an applicable margin determined by reference to LyondellBasell N.V.’s current credit ratings.

~~In January 2021, we repaid $500 million outstanding under our Term Loan due 2022. An additional $500 million was repaid in April 2021~~.

~~Table of Contents~~

~~LYONDELLBASELL INDUSTRIES N.V.~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)~~

~~Short-Term Debt~~

~~U.S. Receivables Facility~~—Our U.S. Receivables Facility, which expires in July 2021, has a purchase limit of $900 million in addition to a $300 million uncommitted accordion feature. This facility provides liquidity through the sale or contribution of trade receivables by certain of our U.S. subsidiaries to a wholly owned, bankruptcy-remote subsidiary on an ongoing basis and without recourse. We pay variable interest rates on our secured borrowings. Additional fees are incurred for the average daily unused commitments. This facility also provides for the issuance of letters of credit up to $200 million. We plan on extending

all or a portion of this facility prior to its maturity in July 2021 in accordance with the terms of the agreement. At March 31, 2021, we had 0 borrowings or letters of credit outstanding and $900 million unused availability under this facility.

~~Commercial Paper Program~~—We have a commercial paper program under which we may issue up to $2,500 million of privately placed, unsecured, short-term promissory notes (“commercial paper”). Interest rates on the commercial paper outstanding at March 31, 2021 are based on the terms of the notes and range from 0.19% to 0.27%. At March 31, 2021, we had $500 million of outstanding commercial paper.

~~Weighted Average Interest Rate—At March 31, 2021 and December 31, 2020, our weighted average interest rates on outstanding Short-term debt was 0.9%.~~

~~Additional Information~~

~~Debt Discount and Issuance Costs~~—Amortization of debt discounts and debt issuance costs resulted in amortization expense of $5 million and $4 million for the three months ended March 31, 2021 and 2020, respectively, which is included in Interest expense in the Consolidated Statements of Income.

~~As of March 31, 2021, we are in compliance with our debt covenants.~~

~~7. Financial Instruments and Fair Value Measurements~~

We are exposed to market risks, such as changes in commodity pricing, interest rates and currency exchange rates. To manage the volatility related to these exposures, we selectively enter into derivative contracts pursuant to our risk management policies.

A summary of our financial instruments, risk management policies, derivative instruments, hedging activities and fair value measurement can be found in Notes 2 and 13 to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2020. If applicable, updates have been included in the respective sections below.

~~Cash and Cash Equivalents—At March 31, 2021 and December 31, 2020, we had marketable securities classified as Cash and cash equivalents of $560 million and $682 million, respectively.~~

~~Foreign Currency Gain (Loss)—Other income, net, in the Consolidated Statements of Income reflected foreign currency gains of $3 million and losses of $7 million for the three months ended March 31, 2021 and 2020, respectively.~~

~~Table of Contents~~

~~LYONDELLBASELL INDUSTRIES N.V.~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)~~

~~Financial Instruments Measured at Fair Value on a Recurring Basis—The following table summarizes financial instruments outstanding for the periods presented that are measured at fair value on a recurring basis:~~

March 31, 2021 December 31, 2020
Millions of dollars Notional Amount Fair Value Notional Amount Fair Value Balance Sheet
Classification
Assets–
Derivatives designated as hedges:
Commodities $ 25 $ 5 $ 19 $ 3 Prepaid expenses and other current assets
Commodities 30 4 41 4 Other Assets
Foreign currency 358 56 0 26 Prepaid expenses and other current assets
Interest rates 0 1 0 0 Prepaid expenses and other current assets
Interest rates 117 1 122 2 Other assets
Derivatives not designated as hedges:
Commodities 111 5 71 2 Prepaid expenses and other current assets
Foreign currency 34 1 149 0 Prepaid expenses and other current assets
Non-derivatives:
Available-for-sale debt securities 265 266 348 349 Short-term investments
Equity securities 117 117 353 353 Short-term investments
Total $ 1,057 $ 456 $ 1,103 $ 739
Liabilities–
Derivatives designated as hedges:
Commodities $ 0 $ 0 $ 0 $ 2 Accrued liabilities
Foreign currency 855 116 1,213 146 Accrued liabilities
Foreign currency 2,682 209 2,682 302 Other liabilities
Interest rates 1,150 120 1,000 343 Other liabilities
Derivatives not designated as hedges:
Commodities 191 22 113 14 Accrued liabilities
Foreign currency 717 5 76 1 Accrued liabilities
Total $ 5,595 $ 472 $ 5,084 $ 808

As of March 31, 2021, our limited partnership investments included in our equity securities discussed below are measured at fair value using the net asset value per share (or its equivalent) practical expedient and have not been classified in the fair value hierarchy. All other financial instruments in the table above, including equity securities as of December 31, 2020, are classified as Level 2. We present the gross assets and liabilities of our derivative financial instruments on the Consolidated Balance Sheets.

~~At March 31, 2021, our outstanding foreign currency contracts, not designated as hedges, mature from April 2021 to March 2022. Our commodity contracts, not designated as hedges, mature in May 2021.~~

~~Table of Contents~~

~~LYONDELLBASELL INDUSTRIES N.V.~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)~~

~~Financial Instruments Not Measured at Fair Value on a Recurring Basis~~—The following table presents the carrying value and estimated fair value of our financial instruments that are not measured at fair value on a recurring basis for the periods presented. Due to the short maturity, the fair value of all non-derivative financial instruments included in Current assets and Current liabilities for which the carrying value approximates fair value are excluded from the table below. Short-term and long-term debt are recorded at amortized cost in the Consolidated Balance Sheets. The carrying and fair values of short-term and of long-term debt exclude commercial paper and other miscellaneous debt. All financial instruments in the table below are classified as Level 2.

March 31, 2021 December 31, 2020
Millions of dollars Carrying
Value Fair
Value Carrying
Value Fair
Value
Non-derivatives:
Liabilities:
Short-term debt $ 162 $ 181 $ 140 $ 154
Long-term debt 14,715 15,895 15,266 17,290
Total $ 14,877 $ 16,076 $ 15,406 $ 17,444

~~Net Investment Hedges—The following table summarizes our net investment hedges outstanding for the periods presented:~~

March 31, 2021 December 31, 2020
Millions of euro/dollars Notional Value Notional Value Expiration Date
Equivalent
US$ Equivalent
US$
Foreign currency € 1,667 $ 1,890 € 1,667 $ 1,890 2021 to 2030

~~In April 2021, we entered into a foreign currency contract with a notional value of €250 million that was designated as a net investment hedge.~~

~~Cash Flow Hedges—The following table summarizes our cash flow hedges outstanding for the periods presented:~~

March 31, 2021 December 31, 2020
Millions of dollars Notional Value Notional Value Expiration Date
Foreign currency $ 2,005 $ 2,005 2021 to 2027
Interest rates 1,000 1,000 2023 to 2024
Commodities 55 60 2021 to 2022

~~As of March 31, 2021 and December 31, 2020, Other assets include~~$172 million and $238 million of collateral held with our counterparties related to our forward-starting interest rate swaps, respectively. Related cash flows are included in financing activities in the Consolidated Statements of Cash Flows.

~~As of March 31, 2021, on a pre-tax basis, $5 million is scheduled to be reclassified from Accumulated other comprehensive loss as an increase to Interest expense over the next twelve months.~~

~~Table of Contents~~

~~LYONDELLBASELL INDUSTRIES N.V.~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)~~

~~Fair Value Hedges—The following table summarizes our fair value hedges outstanding for the periods presented:~~

March 31, 2021 December 31, 2020
Millions of dollars Notional Value Notional Value Expiration Date
Interest rates $ 267 $ 122 2026 to 2030

In March 2021, we entered into a fixed-for-floating interest rate swap to mitigate the change in the fair value of $150 million of our $500 million, 3.375% guaranteed notes due 2030 associated with the risk of variability in the 3-month LIBOR rate component.

In April 2021, we entered into two fixed-for-floating interest rate swaps to mitigate the change in the fair value associated with the risk of variability in the 3-month LIBOR rate component of $150 million of our $500 million, 2.875% guaranteed notes due 2025 and $150 million of our $1,000 million, 3.5% guaranteed notes due 2027.

~~The fixed-rate and variable-rate components for these trades are settled semi-annually and quarterly, respectively.~~

~~Impact on Earnings and Other Comprehensive Income~~—The following tables summarize the pre-tax effect of derivative and non-derivative instruments recorded in Accumulated other comprehensive loss (“AOCI”), the gains (losses) reclassified from AOCI to earnings and additional gains (losses) recognized directly in earnings:

Effects of Financial Instruments
Three Months Ended March 31,
Gain (Loss) Recognized in AOCI Gain (Loss) Reclassified from AOCI to Income Gain (Loss) Recognized in Income Income Statement
Millions of dollars 2021 2020 2021 2020 2021 2020 Classification
Derivatives designated as hedges:
Commodities $ 6 $ 0 $ (1) $ 0 $ 0 $ 0 Cost of sales
Foreign currency 148 164 (92) (53) 12 16 Interest expense
Interest rates 223 (535) 1 0 2 96 Interest expense
Derivatives not designated as hedges:
Commodities 0 0 0 0 3 (9) Sales and other operating revenues
Commodities 0 0 0 0 11 (3) Cost of sales
Foreign currency 0 0 0 0 (14) (4) Other income, net
Non-derivatives designated as hedges:
Long-term debt 0 22 0 0 0 0 Other income, net
Total $ 377 $ (349) $ (92) $ (53) $ 14 $ 96

The derivative amounts excluded from the assessment of effectiveness for foreign currency contracts designated as net investment hedges recognized in Other comprehensive income for the three months ended March 31, 2021 and 2020 were gains of $4 million and less than $1 million, respectively.

The derivative amounts excluded from the assessment of effectiveness for foreign currency contracts designated as net investment hedges recognized in Interest expense for the three months ended March 31, 2021 and 2020 were gains of $3 million and $4 million, respectively.

~~Table of Contents~~

~~LYONDELLBASELL INDUSTRIES N.V.~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)~~

The pre-tax effect of the periodic receipt of fixed interest and payment of variable interest associated with our fixed-for-floating interest rate swaps resulted in less than $1 million and $2 million decreases in Interest expense during the three months ended in March 31, 2021 and 2020, respectively.

~~Investments in Available-for-Sale Debt Securities—The following table summarizes the amortized cost, gross unrealized gains and losses, and fair value of our outstanding available-for-sale debt securities:~~

Millions of dollars Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value
Debt securities at March 31, 2021 $ 265 $ 1 $ 0 $ 266
Debt securities at December 31, 2020 348 1 0 349

~~NaN allowance for credit losses related to our available-for-sale debt securities were recorded for the three months ended March 31, 2021 and for the year ended December 31, 2020.~~

~~As of March 31, 2021, bonds classified as available-for-sale debt securities had remaining maturities between 1 month and 3 months.~~

We received proceeds of $74 million from maturities of our available-for-sale debt securities during the three months ended March 31, 2021. NaN proceeds were received from maturities of our available-for-sale debt securities during the three months ended March 31, 2020. In addition, 0 proceeds were received and 0 gain or loss was realized in connection with the sales of our available-for-sale debt securities during the three months ended March 31, 2021 and 2020, respectively.

~~We had 0 available-for-sale debt securities which were in a continuous unrealized loss position for less than or greater than twelve months as of March 31, 2021 and December 31, 2020.~~

~~Investments in Equity Securities—Our investment in equity securities consists of an investment in a limited partnership with a notional amount~~ of $117 million and $353 million as of March 31, 2021 and December 31, 2020, respectively. Carrying amount approximate fair value. The investment is carried at its net asset value as a practical expedient at March 31, 2021 and fair value at December 31, 2020. The investment is under voluntary liquidation by the fund administrator and we expect the investment to be fully liquidated within the next twelve months, during which time redemption or sale of the investment is restricted.

We received proceeds of $226 million and $1 million related to our investments in equity securities during the three months ended March 31, 2021 and 2020, respectively. Proceeds of $16 million were received in April 2021.

~~We recognized unrealized gains of less than $1 million on our equity securities that were outstanding during the three months ended March 31, 2021 and 2020.~~


	Ordinary Shares				Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Company Share of Shareholders’ Equity		Non- Controlling Interests
Millions of dollars	Issued		Treasury
Balance, December 31, 2021	$	19	$	(965)	$	6,044	$	8,563	$	(1,803)	$	11,858	$	14
Net income	—		—		—		1,320		—		1,320		—
Other comprehensive income	—		—		—		—		68		68		—
Share-based compensation	—		11		12		4		—		27		—
Dividends - common stock ($1.13 per share)	—		—		—		(371)		—		(371)		—
Dividends - redeemable non-controlling interests ($15.00 per share)	—		—		—		(2)		—		(2)		—
Repurchases of Company ordinary shares	—		(202)		—		—		—		(202)		—


Balance, March 31, 2022	$	19	$	(1,156)	$	6,056	$	9,514	$	(1,735)	$	12,698	$	14


	Ordinary Shares				Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Company Share of Shareholders’ Equity		Non- Controlling Interests
Millions of dollars	Issued		Treasury
Balance, December 31, 2020	$	19	$	(531)	$	5,986	$	4,440	$	(1,943)	$	7,971	$	17
Net income	—		—		—		1,070		—		1,070		—
Other comprehensive income	—		—		—		—		79		79		—
Share-based compensation	—		25		7		2		—		34		—
Dividends - common stock ($1.05 per share)	—		—		—		(352)		—		(352)		—
Dividends - redeemable non-controlling interests ($15.00 per share)	—		—		—		(2)		—		(2)		—



Sales of non-controlling interest	—		—		—		—		—		—		(3)
Balance, March 31, 2021	$	19	$	(506)	$	5,993	$	5,158	$	(1,864)	$	8,800	$	14

See Notes to the Consolidated Financial Statements.

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LYONDELLBASELL INDUSTRIES N.V.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

TABLE OF CONTENTS

Table of Contents

LYONDELLBASELL INDUSTRIES N.V.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of Presentation

LyondellBasell Industries N.V. is a limited liability company (Naamloze Vennootschap) incorporated under Dutch law by deed of incorporation dated October 15, 2009. Unless otherwise indicated, the “Company,” “we,” “us,” “our” or similar words are used to refer to LyondellBasell Industries N.V. together with its consolidated subsidiaries (“LyondellBasell N.V.”). LyondellBasell N.V. is a worldwide manufacturer of chemicals and polymers, a refiner of crude oil, a significant producer of gasoline blending components and a developer and licensor of technologies for the production of polymers.

The accompanying unaudited Consolidated Financial Statements have been prepared from the books and records of LyondellBasell N.V. in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial information. Certain notes and other information have been condensed or omitted from the interim financial statements included in this report. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States (“U.S. GAAP”) for complete financial statements. These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. In the opinion of management, all adjustments, including normal recurring adjustments, considered necessary for a fair statement have been included. These statements contain some amounts that are based upon management estimates and judgments. Future actual results could differ from such current estimates. The results for interim periods are not necessarily indicative of results for the entire year.

2. Accounting and Reporting Changes

Recently Adopted Guidance

There were no new standards or Accounting Standard Updates (“ASU”) adopted in the quarter ended March 31, 2022 that had a material impact on our Consolidated Financial Statements.

Accounting Guidance Issued But Not Adopted as of March 31, 2022

Government Assistance—In November 2021, the Financial Accounting Standards Board (“FASB”) issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. The guidance requires disclosures about assistance received from the government that have been accounted for by analogizing to a grant or contribution accounting model including the nature and form of assistance, the accounting policies used to account for the assistance and its impact on the entity’s financial statements. The guidance is effective for annual periods beginning after December 15, 2021, with early application permitted. The adoption of this guidance will not have a material impact on our Consolidated Financial Statements.

Table of Contents

LYONDELLBASELL INDUSTRIES N.V.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

3. Revenues

Contract Balances—Contract liabilities were $214 million and $169 million at March 31, 2022 and December 31, 2021, respectively. Revenue recognized in each reporting period, included in the contract liability balance at the beginning of the period, was immaterial.

Disaggregation of Revenues—The following table presents our revenues disaggregated by key products:


	Three Months Ended March 31,
Millions of dollars		2022		2021
Sales and other operating revenues:
Olefins and co-products		$	1,157	$	1,091
Polyethylene		2,684		2,153
Polypropylene		2,014		1,718
Propylene oxide and derivatives		885		502
Oxyfuels and related products		1,254		607
Intermediate chemicals		1,110		578
Compounding and solutions		1,135		1,038
Advanced polymers		272		231
Refined products		2,458		993
Other		188		171
Total		$	13,157	$	9,082

The following table presents our revenues disaggregated by geography, based upon the location of the customer:


	Three Months Ended March 31,
Millions of dollars		2022		2021
Sales and other operating revenues:
United States		$	6,074	$	4,086
Germany		995		765
China		656		560
Italy		518		378
Mexico		442		247
Japan		423		230
Poland		395		270
The Netherlands		390		270
France		387		290
Other		2,877		1,986
Total		$	13,157	$	9,082

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LYONDELLBASELL INDUSTRIES N.V.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

4. Accounts Receivable

Our accounts receivable are reflected in the Consolidated Balance Sheets, net of allowance for credit losses, of $6 million as of March 31, 2022 and December 31, 2021.

5. Inventories

Inventories consisted of the following components:


Millions of dollars	March 31, 2022		December 31, 2021
Finished goods	$	3,382	$	3,329
Work-in-process	206		178
Raw materials and supplies	1,391		1,394
Total inventories	$	4,979	$	4,901

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LYONDELLBASELL INDUSTRIES N.V.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

6. Debt

Long-term loans, notes and other debt, net of unamortized discount and debt issuance cost, consisted of the following:


Millions of dollars	March 31, 2022		December 31, 2021
Senior Notes due 2024, $1,000 million, 5.75% ($2 million of debt issuance cost)	$	773	$	773
Senior Notes due 2055, $1,000 million, 4.625% ($15 million of discount; $11 million of debt issuance cost)	974		974
Guaranteed Notes due 2027, $300 million, 8.1%	300		300
Issued by LYB International Finance B.V.:
Guaranteed Notes due 2023, $750 million, 4.0% ($1 million of discount)	424		423
Guaranteed Notes due 2043, $750 million, 5.25% ($19 million of discount; $7 million of debt issuance cost)	724		724
Guaranteed Notes due 2044, $1,000 million, 4.875% ($10 million of discount; $9 million of debt issuance cost)	981		981
Issued by LYB International Finance II B.V.:
Guaranteed Notes due 2026, €500 million, 0.875% ($1 million of discount; $2 million of debt issuance cost)	547		562
Guaranteed Notes due 2027, $1,000 million, 3.5% ($3 million of discount; $3 million of debt issuance cost)	612		631
Guaranteed Notes due 2031, €500 million, 1.625% ($5 million of discount; $3 million of debt issuance cost)	547		558
Issued by LYB International Finance III LLC:
Guaranteed Notes due 2025, $500 million, 1.25% ($1 million of discount; $3 million of debt issuance cost)	479		486
Guaranteed Notes due 2030, $500 million, 3.375% ($1 million of debt issuance cost)	133		143
Guaranteed Notes due 2030, $500 million, 2.25% ($3 million of discount; $4 million of debt issuance cost)	481		490
Guaranteed Notes due 2040, $750 million, 3.375% ($2 million of discount; $7 million of debt issuance cost)	741		741
Guaranteed Notes due 2049, $1,000 million, 4.2% ($15 million of discount; $10 million of debt issuance cost)	975		975
Guaranteed Notes due 2050, $1,000 million, 4.2% ($6 million of discount; $10 million of debt issuance cost)	976		981
Guaranteed Notes due 2051, $1,000 million, 3.625% ($3 million of discount; $11 million of debt issuance cost)	957		986
Guaranteed Notes due 2060, $500 million, 3.8% ($4 million of discount; $6 million of debt issuance cost)	490		490
Other	69		34
Total	11,183		11,252
Less current maturities	(8)		(6)
Long-term debt	$	11,175	$	11,246

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LYONDELLBASELL INDUSTRIES N.V.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Fair value hedging adjustments associated with the fair value hedge accounting of our fixed-for-floating interest rate swaps for the applicable periods are as follows:


		Gains (Losses)					Cumulative Fair Value Hedging Adjustments Included in Carrying Amount of Debt
	Three Months Ended March 31,				March 31,		December 31,
Millions of dollars			2022		2021		2022		2021
Guaranteed Notes due 2025, 1.25%			$	7	$	—	$	9	$	2
Guaranteed Notes due 2026, 0.875%			4		1		5		1
Guaranteed Notes due 2027, 3.5%			19		4		(27)		(46)
Guaranteed Notes due 2030, 3.375%			10		—		8		(2)
Guaranteed Notes due 2030, 2.25%			10		—		12		2
Guaranteed Notes due 2050, 4.2%			5		—		8		3
Guaranteed Notes due 2051, 3.625%			29		—		29		—
Total			$	84	$	5	$	44	$	(40)

Fair value adjustments are recognized in Interest expense in the Consolidated Statements of Income.

Short-term loans, notes and other debt consisted of the following:


Millions of dollars	March 31, 2022		December 31, 2021
U.S. Receivables Facility	$	—	$	—
Commercial paper	35		204
Precious metal financings	106		155
Other	—		3
Total Short-term debt	$	141	$	362

Long-Term Debt

Senior Revolving Credit Facility—Our $3,250 million Senior Revolving Credit Facility, which expires in November 2026, may be used for dollar and euro denominated borrowings. The facility has a $200 million sub-limit for dollar and euro denominated letters of credit, a $1,000 million uncommitted accordion feature and supports our commercial paper program. Borrowings under the facility bear interest at either a base rate, LIBOR rate or EURIBOR rate, plus an applicable margin. Additional fees are incurred for the average daily unused commitments. At March 31, 2022, we had no borrowings or letters of credit outstanding and $3,215 million of unused availability under this facility.

Short-Term Debt

U.S. Receivables Facility—Our U.S. Receivables Facility, which expires in June 2024, has a purchase limit of $900 million in addition to a $300 million uncommitted accordion feature. This facility provides liquidity through the sale or contribution of trade receivables by certain of our U.S. subsidiaries to a wholly owned, bankruptcy-remote subsidiary on an ongoing basis and without recourse. We pay variable interest rates on our secured borrowings. Additional fees are incurred for the average daily unused commitments. This facility also provides for the issuance of letters of credit up to $200 million. At March 31, 2022, we had no borrowings or letters of credit outstanding and $900 million unused availability under this facility.

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LYONDELLBASELL INDUSTRIES N.V.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Commercial Paper Program—We have a commercial paper program under which we may issue up to $2,500 million of privately placed, unsecured, short-term promissory notes (“commercial paper”). Interest rates on the commercial paper outstanding at March 31, 2022 are based on the terms of the notes and range from 0.45% to 0.55%. At March 31, 2022, we had $35 million of outstanding commercial paper.

Weighted Average Interest Rate—At March 31, 2022 and December 31, 2021, our weighted average interest rates on outstanding Short-term debt were 1.2% and 0.9%, respectively.

Additional Information

Debt Discount and Issuance Costs—Amortization of debt discounts and debt issuance costs resulted in amortization expense of $4 million and $5 million for the three months ended March 31, 2022 and 2021, respectively, which is included in Interest expense in the Consolidated Statements of Income.

As of March 31, 2022, we are in compliance with our debt covenants.

7. Financial Instruments and Fair Value Measurements

Financial Instruments Measured at Fair Value on a Recurring Basis—The following table summarizes financial instruments outstanding for the periods presented that are measured at fair value on a recurring basis:


	March 31, 2022				December 31, 2021
Millions of dollars	Notional Amount		Fair Value		Notional Amount		Fair Value		Balance Sheet Classification

Assets–
Derivatives designated as hedges:
Commodities	$	30	$	40	$	41	$	24	Prepaid expenses and other current assets

Foreign currency	614		90		614		63		Prepaid expenses and other current assets
Foreign currency	2,085		61		1,785		43		Other assets
Interest rates	—		13		—		7		Prepaid expenses and other current assets
Interest rates	—		—		300		1		Other assets
Derivatives not designated as hedges:
Commodities	55		12		221		30		Prepaid expenses and other current assets
Commodities	12		1		—		—		Other assets
Foreign currency	83		—		34		1		Prepaid expenses and other current assets
Non-derivatives:

Equity securities	—		—		9		8		Short-term investments
Total	$	2,879	$	217	$	3,004	$	177

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LYONDELLBASELL INDUSTRIES N.V.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)


	March 31, 2022				December 31, 2021
Millions of dollars	Notional Amount		Fair Value		Notional Amount		Fair Value		Balance Sheet Classification
Liabilities–
Derivatives designated as hedges:


Foreign currency	$	—	$	26	$	—	$	14	Accrued liabilities
Foreign currency	1,499		80		1,800		99		Other liabilities
Interest rates	—		5		—		3		Accrued liabilities
Interest rates	2,763		247		1,863		280		Other liabilities
Derivatives not designated as hedges:
Commodities	176		14		24		1		Accrued liabilities
Commodities	31		6		—		—		Other Liabilities
Foreign currency	544		14		188		2		Accrued liabilities


Total	$	5,013	$	392	$	3,875	$	399

The financial instruments in the table above are classified as Level 2, except for our investment in equity securities which are measured at fair value using the net asset value per share, or its equivalent, practical expedient and are not classified in the fair value hierarchy. We present the gross assets and liabilities of our derivative financial instruments on the Consolidated Balance Sheets.

Financial Instruments Not Measured at Fair Value on a Recurring Basis—The following table presents the carrying value and estimated fair value of our Short-term precious metal financings and Long-term debt:


	March 31, 2022				December 31, 2021
Millions of dollars	Carrying Value		Fair Value		Carrying Value		Fair Value




Precious metal financings	$	106	$	105	$	155	$	130
Long-term debt	11,150		11,379		11,218		12,756
Total	$	11,256	$	11,484	$	11,373	$	12,886

The financial instruments in the table above are classified as Level 2. Our other financial instruments classified within Current assets and Current liabilities have a short maturity and their carrying value generally approximates fair value.

Derivative Instruments:

Commodity Prices—The following table presents the notional amounts of our outstanding commodity derivative instruments:


	March 31, 2022		December 31, 2021
Millions of dollars	Notional Amount		Notional Amount		Maturity Date
Derivatives designated as hedges:
Cash flow hedges	$	30	$	41	2022
Derivatives not designated as hedges:
Commodity contracts	274		245		2022

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LYONDELLBASELL INDUSTRIES N.V.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Interest Rates—The following table presents the notional amounts of our outstanding interest rate derivative instruments:

March 31, 2022

December 31, 2021

Millions of dollars

Notional Amount

Maturity Date

Cash flow hedges

1,000

2023 to 2024

Fair value hedges

1,763

1,163

2025 to 2030

As of March 31, 2022 and December 31, 2021, Other assets included $187 million and $238 million of collateral related to these forward-starting interest swaps, representing the maximum amount of collateral that may be required under these contracts.

Foreign Currency Rates—The following table presents the notional amounts of our outstanding foreign currency derivative instruments:


	March 31, 2022		December 31, 2021
Millions of dollars	Notional Amount		Notional Amount		Maturity Date
Net investment hedges	$	3,048	$	3,048	2022 to 2030
Cash flow hedges	1,150		1,150		2024 to 2027
Not designated	627		222		2022 to 2023

Impact on Earnings and Other Comprehensive Income—The following tables summarize the pre-tax effect of derivative and non-derivative instruments recorded in Accumulated other comprehensive loss (“AOCI”), the gains (losses) reclassified from AOCI to earnings and additional gains (losses) recognized directly in earnings:


	Effects of Financial Instruments
	Three Months Ended March 31,
	Balance Sheet				Income Statement
	Gain (Loss) Recognized in AOCI				Gain (Loss) Reclassified to Income from AOCI				Additional Gain (Loss) Recognized in Income				Income Statement
Millions of dollars	2022		2021		2022		2021		2022		2021		Classification
Derivatives designated as hedges:

Commodities	$	26	$	6	$	(11)	$	(1)	$	—	$	—	Cost of sales
Foreign currency	44		148		(25)		(92)		(4)		12		Interest expense
Interest rates	112		223		1		1		4		2		Interest expense
Derivatives not designated as hedges:
Commodities	—		—		—		—		36		3		Sales and other operating revenues
Commodities	—		—		—		—		3		11		Cost of sales
Foreign currency	—		—		—		—		(19)		(14)		Other income, net


Total	$	182	$	377	$	(35)	$	(92)	$	20	$	14

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LYONDELLBASELL INDUSTRIES N.V.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

As of March 31, 2022, on a pre-tax basis, $6 million is scheduled to be reclassified from Accumulated other comprehensive loss as an increase to interest expense over the next twelve months.

Other Financial Instruments:

Cash and Cash Equivalents—At March 31, 2022 and December 31, 2021, we had marketable securities classified as Cash and cash equivalents of $1,089 million and $438 million, respectively.

8. Income Taxes

For interim tax reporting, we estimate an annual effective tax rate which is applied to the year-to-date ordinary ~~income (loss).~~income. Tax effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur.Our effective income tax rate fluctuates based on, among other factors, changes in pretax income in countries with varying statutory tax rates, changes in valuation allowances, changes in foreign exchange gains ~~(losses),~~or losses, the amount of exempt income, changes in unrecognized tax benefits associated with uncertain tax positions and changes in tax laws.

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~~LYONDELLBASELL INDUSTRIES N.V.~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)~~

Our exempt income primarily includes interest income, export incentives, and equity earnings ofjoint ventures. Interest income earned by certain of our European subsidiaries through intercompany financings is taxed at rates substantially lower than the U.S. statutory rate. Export incentives relate to tax benefits derived from elections and structures available for U.S. exports. Equity earnings attributable to the earnings of our joint ventures, when paid through dividends to certain European subsidiaries, are exempt from all or portions of normal statutory income tax rates. We currently anticipate the favorable treatment for interest income, dividends, and export incentives to continue in the near term; however, this treatment is based on current law and tax rulings, which could ~~change.~~change if the tax reform proposals in the U.S. and the Pillar Two proposals by the Organization for Economic Cooperation and Development (“OECD”) are enacted.

Our effective income tax ~~rate~~rates for the ~~three months ended March 31, 2021~~first quarter of 2022 was ~~6.1%~~19.3% compared ~~with 34.4%~~to 6.1% for the ~~three months ended March 31, 2020. The lower effective tax rate was primarily attributable to~~first quarter of 2021. In the ~~remeasurement~~first quarter of ~~U.S. deferred tax liabilities that occurred in the prior year as a result of the Coronavirus Aid, Relief, and Economic Security Act, also known as the “CARES Act”, and~~2021, we benefited from return to accrual adjustments primarily ~~from a tax benefit~~ associated with a step-up of certain Italian assets to fair market ~~value. The~~value and benefits resulting from the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) of 10.5% and 2.6% respectively; such benefits did not impact our effective tax ~~benefit associated with a step-up of certain Italian assets resulted from a tax change which allows a voluntary step-up of tangible and intangible assets to fair market value~~rate in ~~exchange for a substitute tax. During~~ the first quarter of 2021, we assessed a reasonable estimate of the step-up of select assets and recognized a net tax benefit of $120 million. These drivers were partially offset by the reduced relative impact of our tax rate drivers, primarily exempt income, due to increased pre-tax earnings.2022.

9. Commitments and Contingencies

Commitments—We have various purchase commitments for materials, supplies and services incidental to the ordinary conduct of business, generally for quantities required for our businesses and at prevailing market prices. These commitments are designed to assure sources of supply and are not expected to be in excess of normal requirements. As of March 31, ~~2021~~, 2022, we had capital expenditure commitments, which we incurred in our normal course of business,, including commitments of approximately ~~$316~~$366 million related to building our new PO/TBA plant in Houston, Texas.

Financial Assurance Instruments—We have obtained letters of credit, performance and surety bonds and have issued financial and performance guarantees to support trade payables, potential liabilities and other obligations. Considering the frequency of claims made against the financial instruments we use to support our obligations, and the magnitude of those financial instruments in light of our current financial position, management does not expect that any claims against or draws on these instruments would have a material adverse effect on our Consolidated Financial Statements. We have not experienced any unmanageable ~~difficulty~~difficulties in obtaining the required financial assurance instruments for our current operations.

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LYONDELLBASELL INDUSTRIES N.V.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Environmental Remediation—Our accrued liability for future environmental remediation costs at current and former plant sites and other remediation sites totaled ~~$130~~$135 million and ~~$133~~$138 million as of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively. At March 31, ~~2021,~~2022, the accrued liabilities for individual sites range from less than $1 million to ~~$16~~$27 million. The remediation expenditures are expected to occur over a number of years and are not concentrated in any single year. In our opinion, it is reasonably possible that losses in excess of the liabilities recorded may have been incurred. However, we cannot estimate any amount or range of such possible additional losses. New information about sites, new technology or future developments, such as involvement in investigations by regulatory agencies, could require us to reassess our potential exposure related to environmental matters.

Indemnification—We are parties to various indemnification arrangements, including arrangements entered into in connection with acquisitions, divestitures and the formation and dissolution of joint ventures. Pursuant to these arrangements, we provide indemnification to and/or receive indemnification from other parties in connection with liabilities that may arise in connection with the transactions and in connection with activities prior to completion of the transactions. These indemnification arrangements typically include provisions pertaining to third-party claims relating to environmental and tax matters and various types of litigation. As of March 31, ~~2021,~~2022, we had not accrued any significant amounts for our indemnification obligations, and we are not aware of other circumstances that would likely lead to significant future indemnification obligations. We cannot determine with certainty the potential amount of future payments under the indemnification arrangements until events arise that would trigger a liability under the arrangements.

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~~LYONDELLBASELL INDUSTRIES N.V.~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)~~

As part of our technology licensing contracts, we give indemnifications to our licensees for liabilities arising from possible patent infringement claims with respect to certain proprietary licensed technologies. Such indemnifications have a stated maximum amount and generally cover a period of 5 to 10 years.

Legal Proceedings—We are subject to various lawsuits and claims, including but not limited to, matters involving contract disputes, environmental damages, personal injury and property damage. We vigorously defend ourselves and prosecute these matters as appropriate.

Our legal organization applies its knowledge, experience and professional judgment to the specific characteristics of our cases, employing a litigation management process to manage and monitor legal proceedings in which we are a party. Our process facilitates the early evaluation and quantification of potential exposures in individual cases. This process also enables us to track those cases that have been scheduled for trial, mediation or other resolution. We regularly assess the adequacy of legal accruals based on our professional judgment, experience and the information available regarding our cases.

Based on a consideration of all relevant facts and circumstances, we do not believe the ultimate outcome of any currently pending lawsuit against us will have a material adverse effect upon our operations, financial condition or Consolidated Financial Statements.

10. Shareholders’ Equity and Redeemable Non-controlling Interests

Shareholders’ Equity

Dividend Distributions—The following table summarized the dividends paid in the period presented:


Millions of dollars, except per share amounts	Dividend Per Ordinary Share		Aggregate Dividends Paid		Date of Record
March 2022	$	1.13	$	371	March 7, 2022

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LYONDELLBASELL INDUSTRIES N.V.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Share Repurchase Authorization—In May 2021, our shareholders approved a proposal to authorize us to repurchase up to 34.0 million ordinary shares, through November 28, 2022 (“2021 Share Repurchase Authorization”), which superseded any prior repurchase authorizations. The timing and amount of these repurchases, which are determined based on our evaluation of market conditions and other factors, may be executed from time to time through open market or privately negotiated transactions. The repurchased shares, which are recorded at cost, are classified as Treasury stock and may be retired or used for general corporate purposes, including for various employee benefit and compensation plans.

The following table summarizes our share repurchase activity for the period presented:


Millions of dollars, except shares and per share amounts	Shares Repurchased	Average Purchase Price		Total Purchase Price, Including Commissions and Fees
For three months ended March 31, 2022:
2021 Share Repurchase Authorization	2,073,378	$	97.70	$	202

Total cash paid for share repurchases for the three months ended March ~~2021, we paid a cash dividend~~31, 2022 was $217 million. Cash payments made during the reporting period may differ from the total purchase price, including commissions and fees, due to the timing of ~~$1.05 per~~payments. There were no share ~~for an aggregate of $352 million to shareholders of record on~~repurchases during the three months ended March 8,31, 2021.

Ordinary Shares—The changes in the outstanding amounts of ordinary shares are as follows:


		Three Months Ended March 31,			Three Months Ended March 31,
		2021	2020		2022	2021
Ordinary shares outstanding:	Ordinary shares outstanding:			Ordinary shares outstanding:
Beginning balance	Beginning balance	334,015,220	333,476,883	Beginning balance	329,536,389	334,015,220
Share-based compensation	Share-based compensation	247,964	196,037	Share-based compensation	123,550	247,964

Employee stock purchase plan	Employee stock purchase plan	49,956	81,215	Employee stock purchase plan	57,473	49,956
Purchase of ordinary shares	Purchase of ordinary shares	0	(50,685)	Purchase of ordinary shares	(2,073,378)	—
Ending balance	Ending balance	334,313,140	333,703,450	Ending balance	327,644,034	334,313,140

Treasury Shares—The changes in the amounts of treasury shares held by the Company are as follows:


		Three Months Ended March 31,			Three Months Ended March 31,
		2021	2020		2022	2021
Ordinary shares held as treasury shares:	Ordinary shares held as treasury shares:			Ordinary shares held as treasury shares:
Beginning balance	Beginning balance	6,030,408	6,568,745	Beginning balance	10,675,605	6,030,408
Share-based compensation	Share-based compensation	(247,964)	(196,037)	Share-based compensation	(123,550)	(247,964)

Employee stock purchase plan	Employee stock purchase plan	(49,956)	(81,215)	Employee stock purchase plan	—	(49,956)
Purchase of ordinary shares	Purchase of ordinary shares	0	50,685	Purchase of ordinary shares	2,073,378	—

Ending balance	Ending balance	5,732,488	6,342,178	Ending balance	12,625,433	5,732,488

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LYONDELLBASELL INDUSTRIES N.V.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Accumulated Other Comprehensive Loss—The components of, and after-tax changes in, Accumulated other comprehensive loss as of and for the three months ended March 31, 2022 and 2021 are presented in the following tables:


Millions of dollars	Financial Derivatives		Defined Benefit Pension and Other Postretirement Benefit Plans		Foreign Currency Translation Adjustments		Total
Balance – December 31, 2021	$	(354)	$	(528)	$	(921)	$	(1,803)
Other comprehensive income (loss) before reclassifications	147		—		(14)		133
Tax expense before reclassifications	(32)		—		(11)		(43)
Amounts reclassified from accumulated other comprehensive loss	(35)		8		—		(27)
Tax (expense) benefit	8		(3)		—		5
Net other comprehensive income (loss)	88		5		(25)		68
Balance – March 31, 2022	$	(266)	$	(523)	$	(946)	$	(1,735)


Millions of dollars	Financial Derivatives		Unrealized Gains on Available -for-Sale Debt Securities		Defined Benefit Pension and Other Postretirement Benefit Plans		Foreign Currency Translation Adjustments		Total
Balance – December 31, 2020	$	(426)	$	1	$	(752)	$	(766)	$	(1,943)
Other comprehensive income (loss) before reclassifications	315		—		—		(93)		222
Tax expense before reclassifications	(68)		—		—		(14)		(82)
Amounts reclassified from accumulated other comprehensive loss	(92)		—		15		—		(77)
Tax (expense) benefit	20		—		(4)		—		16
Net other comprehensive income (loss)	175		—		11		(107)		79
Balance – March 31, 2021	$	(251)	$	1	$	(741)	$	(873)	$	(1,864)

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LYONDELLBASELL INDUSTRIES N.V.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

~~Accumulated Other Comprehensive Loss—The components of, and after-tax changes in, Accumulated other comprehensive loss as of and for the three months ended March 31, 2021 and 2020 are presented in the following tables:~~

Millions of dollars Financial
Derivatives Unrealized
Gains on Available
-for-Sale
Debt Securities Defined Benefit
Pension and Other
Postretirement
Benefit Plans Foreign
Currency
Translation
Adjustments Total
Balance – January 1, 2021 $ (426) $ 1 $ (752) $ (766) $ (1,943)
Other comprehensive income (loss) before reclassifications 315 0 0 (93) 222
Tax expense before reclassifications (68) 0 0 (14) (82)
Amounts reclassified from accumulated other comprehensive loss (92) 0 15 0 (77)
Tax (expense) benefit 20 0 (4) 0 16
Net other comprehensive income (loss) 175 0 11 (107) 79
Balance – March 31, 2021 $ (251) $ 1 $ (741) $ (873) $ (1,864)

Millions of dollars Financial
Derivatives Unrealized
Gains on Available
-for-Sale
Debt Securities Defined Benefit
Pension and Other
Postretirement
Benefit Plans Foreign
Currency
Translation
Adjustments Total
Balance – January 1, 2020 $ (200) $ 0 $ (711) $ (873) $ (1,784)
Other comprehensive loss before reclassifications (388) (3) 0 (195) (586)
Tax (expense) benefit before reclassifications 88 1 0 (4) 85
Amounts reclassified from accumulated other comprehensive loss (53) 0 14 0 (39)
Tax (expense) benefit 15 0 (4) 0 11
Net other comprehensive income (loss) (338) (2) 10 (199) (529)
Balance – March 31, 2020 $ (538) $ (2) $ (701) $ (1,072) $ (2,313)

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~~LYONDELLBASELL INDUSTRIES N.V.~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)~~

The amounts reclassified out of each component of Accumulated other comprehensive loss are as follows:


		Three Months Ended March 31,			Affected Line Item on the Consolidated Statements of Income					Three Months Ended March 31,	Affected Line Item on the Consolidated Statements of Income
Millions of dollars	Millions of dollars		2021				2020		Millions of dollars				Affected Line Item on the Consolidated Statements of Income		2021
Reclassification adjustments for:	Reclassification adjustments for:								Reclassification adjustments for:
Financial derivatives:	Financial derivatives:								Financial derivatives:
Foreign currency			$	(92)	$	(53)		Interest expense

Commodities	Commodities		(1)		0			Cost of sales	Commodities		$	(11)			$	(1)		Cost of sales
Foreign currency									Foreign currency		(25)		(92)				Interest expense
Interest rates	Interest rates		1		0			Interest expense	Interest rates		1		1				Interest expense
Income tax expense (benefit)			(20)		(15)			Provision for income taxes
Income tax benefit									Income tax benefit		8		20				Provision for income taxes
Financial derivatives, net of tax	Financial derivatives, net of tax		(72)		(38)				Financial derivatives, net of tax		(27)		(72)

Amortization of defined pension items:	Amortization of defined pension items:								Amortization of defined pension items:
Prior service cost	Prior service cost		1		1			Other income, net	Prior service cost		1		1				Other income, net
Actuarial loss	Actuarial loss		14		13			Other income, net	Actuarial loss		7		14				Other income, net

Income tax expense (benefit)			4		4			Provision for income taxes
Income tax expense									Income tax expense		(3)		(4)				Provision for income taxes
Defined pension items, net of tax	Defined pension items, net of tax		11		10				Defined pension items, net of tax		5		11

Total reclassifications, before tax	Total reclassifications, before tax		(77)		(39)				Total reclassifications, before tax		(27)		(77)
Income tax benefit	Income tax benefit		(16)		(11)			Provision for income taxes	Income tax benefit		5		16				Provision for income taxes
Total reclassifications, after tax	Total reclassifications, after tax		$	(61)	$	(28)		Amount included in net income	Total reclassifications, after tax		$	(22)	$	(61)			Amount included in net income

Redeemable Non-controlling Interests

Our redeemable non-controlling interests relate to shares of cumulative perpetual special stock (“redeemable non-controlling interest stock”) issued by ~~our~~a consolidated ~~subsidiary, formerly known as A. Schulman.~~subsidiary. As of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, we had 115,374 shares of redeemable non-controlling interest stock outstanding.

In February ~~2021,~~2022, we paid cash dividends of $15.00 per share to our redeemable non-controlling interest shareholders of record as of January 15, ~~2021.~~2022. These dividends totaled $2 million for each of the three months ended March 31, ~~2021~~2022 and ~~2020.~~2021.

2120

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LYONDELLBASELL INDUSTRIES N.V.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

11. Per Share Data

Basic earnings per share ~~are~~is based upon the weighted average number of shares of common stock outstanding during the periods. Diluted earnings per share includes the effect of certain stock option ~~awards~~ and other equity-based compensation awards. ~~We have~~Our unvested restricted stock units ~~that~~contain non-forfeitable rights to dividend equivalents and are considered participating ~~securities for~~securities. We calculate basic and diluted earnings per ~~share.~~share under the two-class method.

Earnings per share data ~~and dividends declared per share of common stock are~~is as follows:

Three Months Ended March 31,
2021 2020
Millions of dollars Continuing
Operations Discontinued
Operations Continuing
Operations Discontinued
Operations
Net income (loss) $ 1,072 $ (2) $ 143 $ 1
Dividends on redeemable non-controlling interests (2) 0 (2) 0
Net (income) loss attributable to participating securities (2) 0 0 0
Net income (loss) attributable to ordinary shareholders – basic and diluted $ 1,068 $ (2) $ 141 $ 1
Millions of shares, except per share amounts
Basic weighted average common stock outstanding 334 334 334 334
Effect of dilutive securities 0 0 0 0
Potential dilutive shares 334 334 334 334
Earnings (loss) per share:
Basic $ 3.20 $ (0.01) $ 0.42 $ 0
Diluted $ 3.19 $ (0.01) $ 0.42 $ 0


	Three Months Ended March 31,
	2022				2021
Millions of dollars	Continuing Operations		Discontinued Operations		Continuing Operations		Discontinued Operations
Net income (loss)	$	1,321	$	(1)	$	1,072	$	(2)


Dividends on redeemable non-controlling interests	(2)		—		(2)		—
Net income attributable to participating securities	(2)		—		(2)		—
Net income (loss) attributable to ordinary shareholders – basic and diluted	$	1,317	$	(1)	$	1,068	$	(2)

Millions of shares, except per share amounts
Basic weighted average common stock outstanding	328		328		334		334

Effect of dilutive securities	1		1		—		—
Potential dilutive shares	329		329		334		334

Earnings per share:
Basic	$	4.01	$	—	$	3.20	$	(0.01)
Diluted	$	4.00	$	—	$	3.19	$	(0.01)

2221

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LYONDELLBASELL INDUSTRIES N.V.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

12. Segment and Related Information

Our operations are managed by senior executives who report to our Chief Executive Officer, the chief operating decision maker. Discrete financial information is available for each of the segments, and our Chief Executive Officer uses the operating results of each of the operating segments for performance evaluation and resource allocation. The activities of each of our segments from which they earn revenues and incur expenses are described below:

•Olefins and Polyolefins—Americas (“O&P—Americas”). Our O&P—Americas segment produces and markets olefins and co-products, polyethylene and polypropylene.

•Olefins and Polyolefins—Europe, Asia, International (“O&P—EAI”). Our O&P—EAI segment produces and markets olefins and co-products, polyethylene and polypropylene.

•Intermediates and Derivatives (“I&D”). Our I&D segment produces and markets propylene oxide and its derivatives, oxyfuels and related products, and intermediate chemicals such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.

•Advanced Polymer Solutions (“APS”). Our APS segment produces and markets compounding and solutions, such as polypropylene compounds, engineered plastics, masterbatches, engineered composites, colors and powders, and advanced polymers, which includes Catalloy and polybutene-1.

•Refining. Our Refining segment refines heavy, high-sulfur crude oil and other crude oils of varied types and sources available on the U.S. Gulf Coast into refined products, including gasoline and distillates.

•Technology. Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.

Our chief operating decision maker uses EBITDA as the primary measure for reviewing profitability of our segments, and therefore, we have presented EBITDA for all segments. We define EBITDA as earnings from continuing operations before interest, income taxes, and depreciation and amortization.

“Other” includes intersegment eliminations and items that are not directly related or allocated to business operations, such as foreign exchange gains or losses and components of pension and other postretirement benefit costs other than service costs. Sales between segments are made primarily at prices approximating prevailing market prices.

Summarized financial information concerning reportable segments is shown in the following tables for the periods presented:

Three Months Ended March 31, 2021
Millions of dollars O&P–
Americas O&P–
EAI I&D APS Refining Technology Other Total
Sales and other operating revenues:
Customers $ 2,135 $ 2,840 $ 1,704 $ 1,269 $ 993 $ 141 $ 0 $ 9,082
Intersegment 724 207 63 1 133 24 (1,152) 0
2,859 3,047 1,767 1,270 1,126 165 (1,152) 9,082
Income from equity investments 30 95 12 0 0 0 0 137
EBITDA 867 412 182 135 (110) 94 5 1,585
Capital expenditures 65 40 145 20 25 22 23 340


	Three Months Ended March 31, 2022
Millions of dollars	O&P– Americas		O&P– EAI		I&D		APS		Refining		Technology		Other		Total
Sales and other operating revenues:
Customers	$	2,325	$	3,543	$	3,276	$	1,407	$	2,458	$	148	$	—	$	13,157
Intersegment	1,270		219		63		1		262		33		(1,848)		—
	3,595		3,762		3,339		1,408		2,720		181		(1,848)		13,157
Income (loss) from equity investments	33		1		(5)		—		—		—		—		29
EBITDA	911		188		546		125		148		103		(1)		2,020
Capital expenditures	132		89		163		18		14		29		1		446

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LYONDELLBASELL INDUSTRIES N.V.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)


		Three Months Ended March 31, 2020																	Three Months Ended March 31, 2021
Millions of dollars	Millions of dollars	O&P– Americas		O&P– EAI		I&D		APS		Refining		Technology		Other		Total		Millions of dollars	O&P– Americas		O&P– EAI		I&D		APS		Refining		Technology		Other		Total
Sales and other operating revenues:	Sales and other operating revenues:																	Sales and other operating revenues:
Customers	Customers	$	1,173	$	2,064	$	1,732	$	1,093	$	1,336	$	96	$	0	$	7,494	Customers	$	2,135	$	2,840	$	1,704	$	1,269	$	993	$	141	$	—	$	9,082
Intersegment	Intersegment	619		160		38		3		112		26		(958)		0		Intersegment	724		207		63		1		133		24		(1,152)		—
		1,792		2,224		1,770		1,096		1,448		122		(958)		7,494			2,859		3,047		1,767		1,270		1,126		165		(1,152)		9,082
Income (loss) from equity investments		2		(3)		2		(1)		0		0		0		0
LCM inventory valuation charge		111		36		78		2		192		0		0		419
Income from equity investments																		Income from equity investments	30		95		12		—		—		—		—		137

EBITDA	EBITDA	366		189		203		113		(272)		56		(9)		646		EBITDA	867		412		182		135		(110)		94		5		1,585
Capital expenditures	Capital expenditures	204		42		353		13		16		30		2		660		Capital expenditures	65		40		145		20		25		22		23		340

In April 2022 we announced our decision to cease operation of our Houston Refinery no later than December 31, 2023. We determined that exiting the refining business by the end of next year is the best strategic and financial path forward for the company. Our exit of the refining business progresses our decarbonization goals, and the site’s prime location gives us more options for advancing our future strategic objectives, including circularity. In the interim, we will continue serving the fuels market, which is expected to remain strong in the near-term, and consider potential transactions and alternatives for the site.

In connection with the exit plan, we expect to incur certain costs primarily consisting of accelerated amortization of operating lease assets of approximately $300 million to $400 million, asset decommissioning costs of approximately $150 million to $250 million, personnel related costs of approximately $80 million to $120 million, and other charges of approximately $50 million to $100 million. As we intend to proceed with an orderly shut-down, we do not expect to recognize these charges all at once, but over time through 2024. The actual size and timing of costs associated with the closure may differ from our current expectations, and such differences may be material.

A reconciliation of EBITDA to Income from continuing operations before income taxes is shown in the following table for each of the periods presented:


		Three Months Ended March 31,						Three Months Ended March 31,
Millions of dollars	Millions of dollars		2021		2020		Millions of dollars		2022		2021
EBITDA:	EBITDA:						EBITDA:
Total segment EBITDA	Total segment EBITDA		$	1,580	$	655	Total segment EBITDA		$	2,021	$	1,580
Other EBITDA	Other EBITDA		5		(9)		Other EBITDA		(1)		5
Less:	Less:						Less:
Depreciation and amortization expense	Depreciation and amortization expense		(335)		(342)		Depreciation and amortization expense		(311)		(335)
Interest expense	Interest expense		(110)		(89)		Interest expense		(74)		(110)
Add:	Add:						Add:
Interest income	Interest income		2		3		Interest income		2		2
Income from continuing operations before income taxes	Income from continuing operations before income taxes		$	1,142	$	218	Income from continuing operations before income taxes		$	1,637	$	1,142

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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

GENERAL

This discussion should be read in conjunction with the information contained in our Consolidated Financial Statements, and the accompanying notes elsewhere in this report. Unless otherwise indicated, the “Company”, “we”, “us,” “our” or similar words are used to refer to LyondellBasell Industries N.V. together with its consolidated subsidiaries (“LyondellBasell N.V.”).

In November 2020, the U.S. Securities and Exchange Commission (the “SEC”) adopted the final rule under SEC Release No. 33-10890, Management’s Discussion and Analysis, Selected Financial Data, and Supplementary Financial Information, which we applied as of December 31, 2021. Pursuant to this final rule, for interim reporting, we have elected to compare the changes in our results of operations of the most recently completed quarter to the immediately preceding sequential quarter as management believes this is more useful in identifying current business trends and provides a more meaningful comparison.

OVERVIEW

~~First~~During the first quarter ~~performance built upon the economic momentum~~2022 we ~~saw toward the end of last year. We experienced improved consumer-driven demand, recovery in durable goods markets~~reversed fourth quarter trends and ~~industry supply constraints, which enabled~~achieved price increases for polyethylene and ~~drove margin improvements for many of our products. During February 2021, unusually cold weather~~polypropylene while rapidly rising feedstock and ~~related power outages impacted operations in our industry across the state of Texas~~energy costs compressed olefins and reduced our production volumes. In March 2021 we achieved the first full quarter of results for our recently formed Louisiana Integrated PolyEthylene JV LLC joint venture (the “Louisiana Joint Venture”) in which we have a 50% ownership interest. We benefited from the increased geographic diversity of our portfolio as the Louisiana ethylene cracker operated continuously when most Texas assets were down due to the cold weather. Tight markets and strong demand drove margin improvementspolyolefins margins in our O&P—Americas segment. European demand for polymers remained solid despite ongoing challenges from the war in Ukraine. Our ethylene cracker in La Porte, Texas, restarted ahead of schedule in March after completing a major planned maintenance turnaround. In our oxyfuels and ~~O&P—EAI segments. Higher~~refining businesses, increasing demand ~~from automotive~~for transportation fuels and ~~other non-durable markets increased volumes~~higher prices for gasoline and diesel led to improvements in our results. Advanced Polymer Solutions ~~segment while margins compressed~~profitability increased due to ~~rapidly rising raw material costs.~~higher volumes and margins as automotive demand improved from the fourth quarter of 2021.

~~Significant items~~As a result of the war in Ukraine, in March we announced that, ~~affected~~effective immediately, we will not enter into any new business transactions or relationships with Russian state-owned entities and also that we intend to discontinue business relationships with Russian state-owned entities to the extent legally possible. We do not expect these measures will have a direct material impact on our ~~results~~operations or financial position.

We continued to generate substantial cash during the quarter as cash provided by operating activities provided $1,502 million in the first quarter of ~~2021 relative to~~2022. During the first quarter of ~~2020 include:~~

•~~O&P—Americas results increased primarily due to olefin margin improvements and the first full quarter~~2022 we repurchased approximately 2.1 million of ~~results for~~ our ~~newly formed Louisiana Joint Venture;~~

•~~O&P—EAI results improved as a result of higher polyolefin margins and equity income, partly offset by lower olefin margins; and~~

•~~I&D results declined primarily driven by lower volumes across most businesses from the downtime in Texas due to the weather events.~~

~~Other noteworthy items since the beginning of the year include the following:~~

•~~In January 2021, signed an agreement to form a 50 percent owned joint venture with the China Petroleum & Chemical Corporation which will construct a new PO and SM unit in China; and~~

•~~In both January and April 2021, repaid $500 million~~ outstanding ~~under our Term Loan due 2022, for a total repayment of $1 billion.~~ordinary shares.

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Results of operations for the periods discussed are presented in the table below:


									Three Months Ended
		Three Months Ended March 31,			March 31,				December 31,		March 31,
Millions of dollars	Millions of dollars		2021			2020		Millions of dollars	2022		2021		2021
Sales and other operating revenues	Sales and other operating revenues		$	9,082		$	7,494	Sales and other operating revenues	$	13,157	$	12,830	$	9,082
Cost of sales	Cost of sales		7,678			6,868		Cost of sales	11,136		10,934		7,678

Impairments								Impairments	—		624		—
Selling, general and administrative expenses	Selling, general and administrative expenses		287			295		Selling, general and administrative expenses	328		328		287
Research and development expenses	Research and development expenses		29			27		Research and development expenses	32		33		29
Operating income	Operating income		1,088			304		Operating income	1,661		911		1,088
Interest expense	Interest expense		(110)			(89)		Interest expense	(74)		(153)		(110)
Interest income	Interest income		2			3		Interest income	2		1		2
Other income, net	Other income, net		25			—		Other income, net	19		35		25
Income from equity investments	Income from equity investments		137			—		Income from equity investments	29		72		137
Income from continuing operations before income taxes	Income from continuing operations before income taxes		1,142			218		Income from continuing operations before income taxes	1,637		866		1,142
Provision for income taxes	Provision for income taxes		70			75		Provision for income taxes	316		135		70
Income from continuing operations	Income from continuing operations		1,072			143		Income from continuing operations	1,321		731		1,072
(Loss) income from discontinued operations, net of tax			(2)			1
Loss from discontinued operations, net of tax								Loss from discontinued operations, net of tax	(1)		(5)		(2)
Net income	Net income		$	1,070		$	144	Net income	1,320		726		1,070
Other comprehensive income (loss), net of tax –								Other comprehensive income (loss), net of tax –
Financial derivatives								Financial derivatives	88		(60)		175

Defined benefit pension and other postretirement benefit plans								Defined benefit pension and other postretirement benefit plans	5		168		11
Foreign currency translations								Foreign currency translations	(25)		(28)		(107)
Total other comprehensive income, net of tax								Total other comprehensive income, net of tax	68		80		79
Comprehensive income								Comprehensive income	$	1,388	$	806	$	1,149

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RESULTS OF OPERATIONS

Revenues—~~Revenues~~Revenue increased by ~~$1,588~~$327 million, or ~~21%~~3%, in the first quarter of ~~2021~~2022 compared to the ~~first~~fourth quarter of ~~2020.~~2021. Average sales prices ~~in the first quarter of 2021~~ were higher for many of our products as sales prices generally correlate with crude oil prices, which increased relative to the ~~corresponding period in 2020.~~fourth quarter of 2021. These higher prices led to a ~~26%~~7% increase in revenue. This increase was partially offset by a 3% decline in revenue as a result of lower sales volumes driven by outages in our O&P—Americas and Refining segments. Revenue also decreased 1% as a result of unfavorable foreign exchange impacts.

Revenues increased by $4,075 million, or 45%, in the first quarter of 2022 compared to the first quarter of 2021. ~~Favorable foreign exchange impacts~~Average sales prices were higher for many of our products as sales prices generally correlate with crude oil prices, which increased relative to the first quarter of 2021. These higher prices led to a 31% increase in revenue. Higher sales volumes, driven by increased demand, resulted in a revenue increase of 4% during the first quarter of 2021. Lower sales volumes resulted in a revenue decrease of 9% relative to the first quarter of 2020 primarily due to unusually cold temperatures and associated electrical power outages that led to shutdowns in our Refining and I&D manufacturing facilities in Texas partially offset by revenues generated from our Louisiana Joint Venture.14%.

Cost of Sales—Cost of sales increased by ~~$810~~$202 million, or ~~12%~~2%, in the first quarter of 2022 compared to the fourth quarter of 2021 and by $3,458 million, or 45%, in the first quarter of 2022 compared to the first quarter of ~~2020. This~~2021. The increase primarily related to higher feedstock and energy costs. Additionally, in the first quarter of 2020, we recognized an LCM inventory valuation charge of $419 million related to the decline in market pricing for many of our raw material and finished goods inventories during the quarter.

Operating Income—Operating income increased by ~~$784~~$750 million, or ~~258%~~82%, in the first quarter of ~~2021~~2022 compared to the fourth quarter of 2021. Operating income in our Refining, I&D, APS and O&P—EAI segments increased $644 million, $329 million, $101 million and $81 million, respectively. These increases were partially offset by a decrease in Operating income in our O&P—Americas and Technology segments of $339 million and $70 million, respectively.

Operating income increased by $573 million, or 53%, in the first quarter of 2022 compared to the first quarter of ~~2020. In the first quarter of 2021, operating~~2021. Operating income in our ~~O&P–Americas,~~I&D, Refining, O~~&P–EAI,~~&P—Americas and Technology ~~and APS~~ segments increased by ~~$449~~$380 million, ~~$184~~$278 million, ~~$124 million, $35~~$41 million and ~~$34~~$11 million, ~~respectively, relative to the first quarter of 2020. The~~respectively. These increases were partially offset by a ~~decline of $43 million~~decrease in Operating income in our ~~I&D segment in the first quarter~~O&P—EAI and APS segments of ~~2021 compared to the first quarter of 2020.~~ $121 million and $16 million, respectively.

Results for each of our business segments are discussed further in the ~~“Segment Analysis”~~Segment Analysis section below.

Income from Equity Investments—Income from our equity investments ~~increased $137~~decreased by $43 million, or ~~100%~~60%, in the first quarter of 2022 compared to the fourth quarter of 2021 and by $108 million, or 79%, in the first quarter of 2022 compared to the first quarter of ~~2020.~~2021. The ~~increase~~decrease was mainly attributable to margin compression due to decreased demand and lower prices in Asia.

Income Taxes—Our effective income tax rate for the first quarter of 2022 was 19.3% compared to 15.6% for the fourth quarter of 2021. The higher effective tax rate in the first quarter of 2022 was primarily ~~due~~attributable to ~~increases~~higher pre-tax earnings and lower exempt income which resulted in ~~Income from equity investments~~a 3% and 2.6% increase in our ~~O&P–EAI segment~~effective tax rate, respectively. These increases were partially offset by a 2.6% decrease in the effective tax rate driven by changes in unrecognized tax benefits.

Our effective income tax rate for the first quarter of 2022 was 19.3% compared to 6.1% for the first quarter of 2021. In the first quarter of 2021, we benefited from return to accrual adjustments primarily ~~by higher margins due~~associated with a step-up of certain Italian assets to ~~increased demand.~~fair market value and benefits resulting from the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) of 10.5% and 2.6% respectively; such benefits did not impact our effective tax rate in the first quarter of 2022. Our income tax results are discussed further in Note 8 to the Consolidated Financial Statements.

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~~Income Taxes~~—Our effective income tax rate for the three months ended March 31, 2021 was 6.1% compared with 34.4% for the three months ended March 31, 2020. The lower effective tax rate was primarily attributable to the remeasurement of U.S. deferred tax liabilities that occurred in the prior year as a result of the CARES Act (-20.9%) and return to accrual adjustments primarily from a tax benefit associated with a step-up of certain Italian assets to fair market value (-11.3%). These drivers were partially offset by the reduced relative impact of our tax rate drivers, primarily exempt income, due to increased pre-tax earnings (7.1%).

Comprehensive Income—Comprehensive income increased by ~~$1,534~~$582 million in the first quarter of ~~2021~~2022 compared to the ~~first~~fourth quarter of ~~2020,~~2021. The increase is primarily due to higher net income ~~net favorable impacts of~~and changes in financial derivative instruments primarily driven by periodic changes in benchmark interest rates, partially offset by the impact of defined pension and ~~improved~~other post-retirement benefits.

Comprehensive income increased by $239 million in the first quarter of 2022 compared to the first quarter of 2021. The increase is primarily due to higher net income and changes in foreign currency translation ~~adjustments.~~adjustments, partially offset by changes in financial derivative instruments primarily driven by periodic changes in benchmark interest rates.

In the first quarter of ~~2021 and 2020,~~2022, the cumulative after-tax effects of our derivatives designated as cash flow hedges were net gains of ~~$175 million and net losses of $338 million, respectively.~~$88 million. Pre-tax gains of ~~$223 million and pre-tax losses of $535~~$112 million related to forward-starting interest rate swaps were driven by periodic changes in benchmark interest rates in the first quarter of ~~2021 and 2020, respectively.~~2022. The fluctuations of the U.S. dollar against the euro and the periodic changes in benchmark interest rates, in the first quarter of ~~2021 and 2020,~~2022, resulted in pre-tax gains of ~~$86~~$9 million, ~~and $147 million, respectively,~~ related to our cross-currency swaps. Pre-tax losses of ~~$92 million and $53~~$25 million related to our cross-currency swaps were reclassified from Accumulated other comprehensive loss to Interest expense in the first quarter of ~~2021 and 2020, respectively.~~2022. The remaining change pertains to our commodity cash flow hedges.

In the fourth quarter of 2021, the cumulative after-tax effects of our derivatives designated as cash flow hedges were net losses of $60 million. Included in this amount, were pre-tax losses of $42 million related to forward-starting interest rate swaps, driven by the periodic change in benchmark interest rates in the fourth quarter of 2021. The fluctuations of the U.S. dollar against the euro and the periodic changes in benchmark interest rates in the fourth quarter of 2021, resulted in pre-tax gains of $80 million, related to our cross-currency swaps. Pre-tax losses of $88 million related to our cross-currency swaps were reclassified from Accumulated other comprehensive loss to Interest expense in the fourth quarter of 2021.

In the first quarter of 2021, the cumulative after-tax effects of our derivatives designated as cash flow hedges were net gains of $175 million. Included in this amount, were pre-tax gains of $223 million related to forward-starting interest rate swaps, driven by the periodic change in benchmark interest rates in the first quarter of 2021.

We recognized defined benefit pension and other post-retirement benefit plan pre-tax gains of $214 million, related to changes in actuarial assumptions, primarily related to an increase in discount rate and higher actual returns versus expected returns on plan assets in the fourth quarter of 2021.

The predominant functional currency for our operations outside of the U.S. is the euro. Relative to the U.S. dollar, the value of the euro ~~decreased during~~weakened in the first quarter of 2022, the fourth and the first quarter of 2021, ~~and 2020,~~ resulting in net losses reflected in the Consolidated Statements of Comprehensive Income. The net losses related to unrealized changes in foreign currency translation impacts ~~were partially offset by~~include pre-tax gains of ~~$62~~$35 million, $52 million and ~~$39~~$62 million, in the first quarter of ~~2021~~2022, the fourth and ~~2020,~~the first quarter of 2021, respectively, which represent the effective portion of our net investment hedges.

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Segment Analysis

We use earnings from continuing operations before interest, income taxes, and depreciation and amortization (“EBITDA”) as our measure of profitability for segment reporting purposes. This measure of segment operating results is used by our chief operating decision maker to assess the performance of and allocate resources to our operating segments. Intersegment eliminations and items that are not directly related or allocated to business operations, such as foreign exchange gains or losses and components of pension and other postretirement benefits other than service costs are included in “Other”. For additional information related to our operating segments, as well as a reconciliation of EBITDA to its nearest GAAP measure, Income from continuing operations before income taxes, see Note 12 to our Consolidated Financial Statements.

Revenues and the components of EBITDA for the periods presented are reflected in the table below:


									Three Months Ended
		Three Months Ended March 31,			March 31,				December 31,		March 31,
Millions of dollars	Millions of dollars		2021			2020		Millions of dollars	2022		2021		2021
Sales and other operating revenues:	Sales and other operating revenues:							Sales and other operating revenues:
O&P–Americas segment			$	2,859		$	1,792
O&P–EAI segment			3,047			2,224
O&P—Americas segment								O&P—Americas segment	$	3,595	$	4,012	$	2,859
O&P—EAI segment								O&P—EAI segment	3,762		3,530		3,047
I&D segment	I&D segment		1,767			1,770		I&D segment	3,339		2,934		1,767
APS segment	APS segment		1,270			1,096		APS segment	1,408		1,253		1,270
Refining segment	Refining segment		1,126			1,448		Refining segment	2,720		2,643		1,126
Technology segment	Technology segment		165			122		Technology segment	181		257		165
Other, including intersegment eliminations	Other, including intersegment eliminations		(1,152)			(958)		Other, including intersegment eliminations	(1,848)		(1,799)		(1,152)
Total	Total		$	9,082		$	7,494	Total	$	13,157	$	12,830	$	9,082
Operating income (loss):	Operating income (loss):							Operating income (loss):
O&P–Americas segment			$	687		$	238
O&P–EAI segment			259			135
O&P—Americas segment								O&P—Americas segment	$	728	$	1,067	$	687
O&P—EAI segment								O&P—EAI segment	138		57		259
I&D segment	I&D segment		88			131		I&D segment	468		139		88
APS segment	APS segment		104			70		APS segment	88		(13)		104
Refining segment	Refining segment		(130)			(314)		Refining segment	148		(496)		(130)
Technology segment	Technology segment		82			47		Technology segment	93		163		82
Other, including intersegment eliminations	Other, including intersegment eliminations		(2)			(3)		Other, including intersegment eliminations	(2)		(6)		(2)
Total	Total		$	1,088		$	304	Total	$	1,661	$	911	$	1,088
Depreciation and amortization:	Depreciation and amortization:							Depreciation and amortization:
O&P–Americas segment			$	143		$	124
O&P–EAI segment			53			53
O&P—Americas segment								O&P—Americas segment	$	144	$	151	$	143
O&P—EAI segment								O&P—EAI segment	47		47		53
I&D segment	I&D segment		80			70		I&D segment	81		115		80
APS segment	APS segment		28			44		APS segment	29		34		28
Refining segment	Refining segment		19			42		Refining segment	—		21		19
Technology segment	Technology segment		12			9		Technology segment	10		9		12
Total	Total		$	335		$	342	Total	$	311	$	377	$	335
Income (loss) from equity investments:	Income (loss) from equity investments:							Income (loss) from equity investments:
O&P–Americas segment			$	30		$	2
O&P–EAI segment			95			(3)
O&P—Americas segment								O&P—Americas segment	$	33	$	21	$	30
O&P—EAI segment								O&P—EAI segment	1		50		95
I&D segment	I&D segment		12			2		I&D segment	(5)		2		12
APS segment	APS segment		—			(1)		APS segment	—		(1)		—
Total	Total		$	137		$	—	Total	$	29	$	72	$	137

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									Three Months Ended
		Three Months Ended March 31,			March 31,				December 31,		March 31,
Millions of dollars	Millions of dollars		2021			2020		Millions of dollars	2022		2021		2021
Other income (loss), net:
O&P–Americas segment			$	7		$	2
O&P–EAI segment			5			4
I&D segment			2			—
APS segment			3			—
Refining segment			1			—

Other, including intersegment eliminations			7			(6)
Total			$	25		$	—
EBITDA:
O&P–Americas segment			$	867		$	366
O&P–EAI segment			412			189
Other income (expense), net:								Other income (expense), net:
O&P—Americas segment								O&P—Americas segment	$	6	$	23	$	7
O&P—EAI segment								O&P—EAI segment	2		1		5
I&D segment	I&D segment		182			203		I&D segment	2		(4)		2
APS segment	APS segment		135			113		APS segment	8		4		3
Refining segment	Refining segment		(110)			(272)		Refining segment	—		1		1
Technology segment	Technology segment		94			56		Technology segment	—		1		—
Other, including intersegment eliminations	Other, including intersegment eliminations		5			(9)		Other, including intersegment eliminations	1		9		7
Total	Total		$	1,585		$	646	Total	$	19	$	35	$	25
EBITDA:								EBITDA:
O&P—Americas segment								O&P—Americas segment	$	911	$	1,262	$	867
O&P—EAI segment								O&P—EAI segment	188		155		412
I&D segment								I&D segment	546		252		182
APS segment								APS segment	125		24		135
Refining segment								Refining segment	148		(474)		(110)
Technology segment								Technology segment	103		173		94
Other, including intersegment eliminations								Other, including intersegment eliminations	(1)		3		5
Total								Total	$	2,020	$	1,395	$	1,585

Olefins and ~~Polyolefins–~~Polyolefin—Americas Segment

Overview—EBITDA ~~improved~~ in the first quarter of 2022 decreased compared to fourth quarter of 2021 due to higher feedstock cost and increased relative to the first quarter of ~~2020 primarily due to~~2021 driven by higher ~~olefin margins.~~polyolefins results.

Ethylene Raw Materials—We have flexibility to vary the raw material mix and process conditions in our U.S. olefins plants in order to maximize profitability as market prices fluctuate for both feedstocks and products. Although prices of crude-based liquids and natural gas liquids are generally related to crude oil and natural gas prices, during specific periods the relationships among these materials and benchmarks may vary significantly. In the first quarter of ~~2021~~2022 and ~~2020~~the first and fourth quarter of 2021 approximately 60% to 70% of the raw materials used in our North American crackers was ethane.

The following table sets forth selected financial information for the O~~&P–~~&P—Americas segment including Income from equity investments, which is a component of EBITDA:

Three Months Ended
March 31,
Millions of dollars 2021 2020
Sales and other operating revenues $ 2,859 $ 1,792
Income from equity investments 30 2
EBITDA 867 366

~~Revenues—Revenues for our O&P–Americas segment increased by $1,067 million, or 60%, in the first quarter of 2021 compared to the first quarter of 2020.~~


	Three Months Ended
	March 31,		December 31,		March 31,
Millions of dollars	2022		2021		2021
Sales and other operating revenues	$	3,595	$	4,012	$	2,859
Income from equity investments	33		21		30
EBITDA	911		1,262		867

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~~Average sales prices were higher~~Revenue—Revenues for our O&P—Americas segment declined by $417 million, or 10%, in the first quarter of 2022 compared to the fourth quarter of 2021 and increased by $736 million, or 26%, in the first quarter of 2022 compared to the first quarter of ~~2020 which~~2021.

First quarter of 2022 versus fourth quarter of 2021—Volume declines resulted in a revenue decrease of 8% due to planned and unplanned outages. Lower average sales prices resulted in a 2% decrease in revenue primarily driven by lower demand.

First quarter of 2022 versus first quarter of 2021—Higher average sales prices resulted in a 23% increase in revenue primarily driven by tight market conditions. Higher sales volume resulted in a revenue increase of ~~50% in the first quarter of 2021. Volume improvements resulted in a revenue increase of 10% in~~3% as the first quarter of 2021 ~~primarily due to a full quarter of results associated with our Louisiana Joint Venture partially offset~~was impacted by the effects of unusually cold temperatures and associated electrical power outages that led to shutdowns of ~~our~~ manufacturing facilities in Texas.

EBITDA—EBITDA decreased by $351 million, or 28%, in the first quarter of 2022 compared to the fourth quarter of 2021 and increased by $44 million, or 5%, in the first quarter of 2022 compared to the first quarter of 2021.

First quarter of 2022 versus fourth quarter of 2021—Lower olefin results led to a 14% decrease in EBITDA primarily due to lower margins driven by higher feedstock costs. Lower polyethylene and polypropylene results led to a 10% and 5% decrease in EBITDA, respectively, primarily due to polyolefin sales price decreases in combination with higher feedstock costs.

First quarter of 2022 versus first quarter of 2021—Higher polyethylene and polypropylene results led to a 18% and 3% increase in EBITDA, respectively, primarily due to sales price increases and lower feedstock costs. Lower olefin results led to a 15% decrease in EBITDA due to margin constraints from rising feedstock and energy costs and lower ethylene sales prices.

Olefins and Polyolefin—Europe, Asia, International Segment

Overview—EBITDA increased in the first quarter of 2022 compared to the fourth quarter of 2021 due to higher product margins and decreased relative to the first quarter of 2021 mainly as a result of lower olefin margins and equity income.

During the first quarter of 2022 and fourth quarter of 2021 we operated our ethylene crackers at 74% and 71% of capacity, respectively, due to planned maintenance compared with an operating rate of 98% in the first quarter of 2021. The first quarter of 2022 was also impacted by feedstock disruptions driven by the war in Ukraine.

Ethylene Raw Materials—In Europe, heavy liquids are the primary raw materials for our ethylene production and represented approximately 70% of the raw materials used in the first quarter of 2022 and the first and fourth quarter of 2021.

The following table sets forth selected financial information for the O&P—EAI segment including Income from equity investments, which is a component of EBITDA:


	Three Months Ended
	March 31,		December 31,		March 31,
Millions of dollars	2022		2021		2021
Sales and other operating revenues	$	3,762	$	3,530	$	3,047
Income from equity investments	1		50		95
EBITDA	188		155		412

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Revenue—Revenues increased by $232 million, or 7%, in the first quarter of 2022 compared to the fourth quarter of 2021 and by $715 million, or 23%, in the first quarter of 2022 compared to the first quarter of 2021.

First quarter of 2022 versus fourth quarter of 2021—Higher average sales prices resulted in a 7% increase in revenue as sales prices generally correlate with crude oil prices, which on average, increased compared to the fourth quarter of 2021. Volume improvements resulted in a revenue increase of 3% primarily due to increased demand. Unfavorable foreign exchange impacts resulted in a revenue decrease of 3%.

First quarter of 2022 versus first quarter of 2021—Higher average sales prices resulted in a 27% increase in revenue as sales prices generally correlate with crude oil prices, which on average, increased compared to the first quarter of 2021. Lower volumes resulted in a revenue decrease of 3% primarily due to lower demand. Unfavorable foreign exchange impacts resulted in a revenue decrease of 1%.

EBITDA—EBITDA increased by ~~$501~~$33 million, or ~~137%~~21%, in the first quarter of 2022 compared to the fourth quarter of 2021 and decreased by $224 million, or 54%, in the first quarter of 2022 compared to the first quarter of 2020. First quarter of 2020 results included a $111 million LCM inventory valuation charge primarily driven by a decline in the price of heavy liquids and ethylene during the quarter. The absence of a similar charge in the first quarter 2021 resulted in a 30% change in EBITDA. The first full quarter of results for our newly formed Louisiana Joint Venture improved EBITDA by 36% during the quarter.2021.

~~Including the results~~First quarter of ~~the Louisiana Joint Venture, higher olefin~~2022 versus fourth quarter of 2021—Higher polyethylene and polypropylene results led to a ~~89% improvement~~19% and 5% increase in EBITDA, ~~in the first quarter of 2021, primarily due~~respectively, largely attributed to ~~ethylene variable margin improvements associated with~~ higher ~~sales prices. Polypropylene~~margins. Higher olefins results led to a ~~12%~~14% increase in EBITDA ~~in the first quarter of 2021, largely due to improved~~primarily driven by higher margins ~~attributed to~~as monomer prices increased, partially offset by higher ~~price spreads over propylene in the first quarter of 2021. Higher~~feedstock and energy costs. Lower income from our equity investments led to ~~increases~~decreases in EBITDA of 7%32% mainly attributable to margin compression due to decreased demand and lower prices in Asia. The fourth quarter of 2021 included a $30 million LIFO inventory valuation charge, a similar charge was not incurred during the first quarter of 2022.

First quarter of 2022 versus first quarter of 2021—Lower olefins results led to a 25% decrease in EBITDA primarily driven by lower margins attributable to higher feedstock and energy costs which outpaced increased ethylene and co-product prices. Lower income from our equity investments led to decreases in EBITDA of 23% mainly attributable to margin compression as noted above. Unfavorable foreign exchange impacts resulted in a EBITDA decrease of 4%.

Other—Planned maintenance in 2022 for our O&P—EAI segment is expected to impact EBITDA by approximately $95 million for the full year, $35 million higher than previously estimated due to additional work related to planned maintenance at our cracker in Berre, France in the second quarter of 2022.

Intermediates and Derivatives Segment

Overview—EBITDA increased in the first quarter of ~~2021 mainly attributable to improved results at our polypropylene joint venture in Mexico.~~

~~Olefins and Polyolefins–Europe, Asia, International Segment~~

~~Overview—EBITDA for the first quarter of 2021 increased~~2022 compared to the first and fourth quarter of ~~2020 mainly as a result of~~2021, primarily driven by higher ~~polymer~~ margins ~~and equity income, partly offset by lower olefin margins.~~across most businesses due to market supply tightness coupled with strong demand recovery.

The following table sets forth selected financial information for the ~~O&P–EAI~~I&D segment including Income (loss) from equity investments, which is a component of EBITDA:


									Three Months Ended
		Three Months Ended March 31,			March 31,				December 31,		March 31,
Millions of dollars	Millions of dollars		2021			2020		Millions of dollars	2022		2021		2021
Sales and other operating revenues	Sales and other operating revenues		$	3,047		$	2,224	Sales and other operating revenues	$	3,339	$	2,934	$	1,767
Income (loss) from equity investments			95			(3)
(Loss) income from equity investments								(Loss) income from equity investments	(5)		2		12
EBITDA	EBITDA		412			189		EBITDA	546		252		182

~~Revenues~~

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Revenue—Revenues increased by ~~$823~~$405 million, or ~~37%~~14%, in the first quarter of 2022 compared to the fourth quarter of 2021 and by $1,572 million, or 89%, in the first quarter of 2022 compared to the first quarter of ~~2020.~~2021.

~~Average~~First quarter of 2022 versus fourth quarter of 2021—Sales volumes increased resulting in a 9% increase in revenue, largely due to improved operating rates at our acetyls facilities. Higher average sales prices resulted in a 6% increase in revenue as sales prices generally correlate with crude oil prices, which on average, increased compared to the fourth quarter of 2021. Unfavorable foreign exchange impacts resulted in a revenue decrease of 1%.

First quarter of 2022 versus first quarter of 2021 ~~were higher across most products~~—Higher average sales prices resulted in a 55% increase in revenue as sales prices generally correlate with crude oil prices, which on average, increased compared to the same period in ~~2020. These higher average sales prices were responsible for a revenue increase of 18% in the first quarter of~~ 2021. ~~Volume improvements resulted~~Sales volumes increased resulting in a 35% increase in revenue, ~~increase of 12% in the first quarter of 2021 from strong polymer demand. Favorable foreign exchange impacts resulted in a revenue increase of 7% in the first quarter of 2021.~~

~~EBITDA—EBITDA increased by $223 million, or 118%, in the first quarter of 2021 compared~~mainly due to ~~the first quarter of 2020~~. ~~First quarter of 2020 results included a $36 million LCM inventory valuation charge primarily driven by a decline in the price of naphtha during the quarter. The~~ absence of ~~a similar charge in the first quarter 2021 resulted in a 19% change in EBITDA.~~

Improved polyethylene and polypropylene results increased EBITDA by 54% and 35%, respectively, in the first quarter of 2021. These improvements were largely attributed to higher margins due to strong demand. Lower olefins results led to a 51% decrease in EBITDA in the first quarter of 2021, primarily driven by lower margins attributable to increased feedstock costs. Higher income from our equity investments led to increases in EBITDA of 52% in the first quarter of 2021 mainly attributable to higher polyolefin margins due to increased demand. Favorable foreign exchange impacts resulted in a 11% increase in EBITDA in the first quarter of 2021.

~~Table of Contents~~

~~Intermediates and Derivatives Segment~~

~~Overview—EBITDA declined in the first quarter of 2021 compared to the first quarter of 2020, primarily driven by lower volumes across most businesses, in particular propylene oxide and derivatives.~~

~~The following table sets forth selected financial information for the I&D segment including Income from equity investments, which is a component of EBITDA:~~

Three Months Ended
March 31,
Millions of dollars 2021 2020
Sales and other operating revenues $ 1,767 $ 1,770
Income from equity investments 12 2
EBITDA 182 203

~~Revenues~~—Revenues decreased by $3 million, remaining relatively flat, in the first quarter of 2021 compared to the first quarter of 2020. Lower sales volumes resulted in a 17% decline in sales, primarily driven by a decline in production due to the impact of unusually cold temperatures and associated electrical power outages that led to shutdowns of our manufacturing facilities in ~~Texas. This~~Texas in early 2021. Unfavorable foreign exchange impacts resulted in a revenue decrease ~~was largely offset~~of 1%.

EBITDA—EBITDA increased by ~~higher average sales prices~~$294 million, or 117%, in the first quarter of ~~2021 for most products as sales prices generally correlate with crude oil prices, which on average, increased~~2022 compared to the ~~same period~~fourth quarter of 2021 and by $364 million, or 200%, in ~~2020. This increase in average sales prices resulted in a 14% increase in revenue. Favorable foreign exchange impacts also increased revenue by 3% in~~the first quarter of 2022 compared to the first quarter of 2021.

~~EBITDA~~

~~—EBITDA decreased by $21 million, or 10%, in the first~~First quarter of ~~2021 compared to the first~~2022 versus fourth quarter of 2020. In the first quarter of 2020 EBITDA for our I&D segment included a $78 million LCM inventory valuation charge primarily driven by a decline in the price of various gasoline blending components and butane during the quarter. The absence of a similar charge in the first quarter 2021 ~~resulted in a 38% change in EBITDA.~~

—Oxyfuels and related products results ~~declined, resulting in a 35% decrease in~~led to an EBITDA ~~in the first quarter~~increase of ~~2021. Approximately 60% of this decline was~~50% primarily driven by margin improvement as a ~~decrease in margins due to lower blending premium over gasoline prices,~~result of higher feedstock costs and higher utility costs related to Texas weather events. The remaining decrease was due to lower volumes driven by Texas weather events and lower gasoline demand. Declines in propyleneproduct prices. Propylene oxide and derivatives results led to anincreases in EBITDA ~~decrease~~ of ~~12% in~~20% due to improved margins driven by increased demand for durable goods. Intermediate chemicals results increased EBITDA by 17% equally driven by higher margins and volumes due to tight industry supply and improved operations. The fourth quarter of 2021 included a $93 million LIFO inventory valuation charge; a similar charge was not incurred during the first quarter of ~~2021. This decrease was~~2022.

First quarter of 2022 versus first quarter of 2021—Propylene oxide and derivatives results increased EBITDA by 113% primarily as a result of ~~lower volumes driven by Texas weather events as discussed above and planned maintenance. Approximately half of this volume decrease was offset by margin improvements~~higher margins due to strong demand recovery coupled with tight market ~~supply.~~supply resulting from industry outages. Intermediate chemicals results ~~declined, contributing to a 10% decrease in~~increased EBITDA ~~primarily~~by 77% due to improved margins driven by higher demand and tight market conditions. Oxyfuels and related products results increased EBITDA by 42% primarily driven by margin improvement as a ~~decrease in margins due to~~result of improved demand and higher ~~feedstock costs. Higher~~gasoline prices. Lower income from our equity investments led to ~~increases~~decreases in EBITDA of ~~5% in the first quarter of 2021~~10% mainly attributable to ~~improved results at our joint venture~~lower propylene oxide margins in ~~China. Favorable~~Asia. Unfavorable foreign exchange impacts ~~increased~~resulted in a EBITDA ~~by 4% in the first quarter~~decrease of ~~2021.~~

Planned maintenance in 2021 is expected to reduce EBITDA by approximately $115 million, which is $30 million lower than previously estimated, due to reduced scope of work and associated downtime for the maintenance.9%.

Advanced Polymer Solutions Segment

Overview—EBITDA ~~for our APS segment~~ increased in the first quarter of 2022 relative to the fourth quarter of 2021 primarily due to higher demand for our products and the absence of a LIFO adjustment recognized during the fourth quarter of 2021. EBITDA decreased in the first quarter of 2022 relative to the first quarter of ~~2020,~~2021 primarily due to ~~improved compounding and solution results and the absence of integration costs related to the acquisition of A. Schulman recognized in the first quarter of 2020.~~lower demand for our products.

~~Table of Contents~~

The following table sets forth selected financial information for the APS segment including losses from equity investments, which is a component of EBITDA:


									Three Months Ended
		Three Months Ended March 31,			March 31,				December 31,		March 31,
Millions of dollars	Millions of dollars		2021			2020		Millions of dollars	2022		2021		2021
Sales and other operating revenues	Sales and other operating revenues		$	1,270		$	1,096	Sales and other operating revenues	$	1,408	$	1,253	$	1,270
Income (loss) from equity investments			—			(1)
Loss from equity investments								Loss from equity investments	—		(1)		—
EBITDA	EBITDA		135			113		EBITDA	125		24		135

~~Revenues~~

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Revenue—Revenues increased by ~~$174~~$155 million, or ~~16%~~12%, in the first quarter of 2022 compared to the fourth quarter of 2021 and by $138 million, or 11%, in the first quarter of 2022 compared to the first quarter of ~~2020.~~2021.

First quarter of 2022 versus fourth quarter of 2021—Sales volumes improved resulting in a 12% increase in revenue stemming from higher automotive and construction demand. Average sales price increased resulting in a 3% increase in revenue as sales prices generally correlate with crude oil prices, which on average, increased compared to the fourth quarter of 2021. Foreign exchange impacts resulted in a revenue ~~increase~~decrease of ~~8% in the~~3%.

First quarter of 2022 versus first quarter of ~~2021. Sales volumes increased in the first quarter of~~ 2021 ~~stemming from higher market demand for compounding and solutions, including higher automotive and construction demand, which led to a 4% increase in revenue.~~ —Average sales price increased resulting in a 4%19% increase in revenue as sales prices generally correlate with crude oil prices, which on average, increased compared to the same period in 2021. Sales volumes decreased resulting in a 7% decrease in revenue stemming from lower automotive demand. Foreign exchange impacts resulted in a revenue decrease of 1%.

EBITDA—EBITDA increased by $101 million, or 421%, in the first quarter of 2022 compared to the fourth quarter of 2021 and decreased by $10 million, or 7%, in the first quarter of 2022 compared to the first quarter of 2021.

~~EBITDA—EBITDA increased by $22 million, or 19%, in the first~~First quarter of ~~2021 compared to the first~~2022 versus fourth quarter of ~~2020. Increased compounding~~2021—Compounding and solutions results led to an EBITDA increase of ~~8% in the first quarter~~146% primarily due to higher volumes driven by higher demand from automotive manufacturers. Increased advanced polymer results led to an EBITDA increase of ~~2021. This increase was mainly attributable~~42% due to higher volumes driven by increased demand for our products utilized in the automotive and construction end markets in Asia and Europe. Integration activities related to our 2018 acquisition of A. Schulman Inc. were substantially completed during the thirdseasonal demand. The fourth quarter of ~~2020. In the absence of these integration costs in~~2021 included a $55 million LIFO inventory valuation charge; a similar charge was not incurred during the first quarter of 2022.

First quarter of 2022 versus first quarter of 2021—Compounding and solutions results led to an EBITDA ~~changed 12% during the quarter. Favorable~~decrease of 13% primarily due to lower volumes driven by lower demand due to constrained production in automotive, appliance and other end markets as a result of semiconductor shortages. Our advanced polymers business results increased 8%, driven by higher price spreads. Unfavorable foreign exchange impacts ~~increased~~resulted in a EBITDA bydecrease of 6% ~~in the first quarter 2021.~~.

Refining Segment

Overview—EBITDA increased in the first quarter of ~~2021~~2022 relative to the first and fourth quarter of ~~2020 primarily~~2021 due to higher margins and the absence of ~~an LCM inventory valuation~~a non-cash impairment charge ~~which was~~ recognized induring the ~~first~~fourth quarter of ~~2020.~~2021.

The following table sets forth selected financial information and heavy crude oil processing rates for the Refining segment and the U.S. refining market margins for the applicable periods. “Brent” is a light sweet crude oil and is one of the main benchmark prices for purchases of oil worldwide. “Maya” is a heavy sour crude oil grade produced in Mexico that is a relevant benchmark for heavy sour crude oils in the U.S. Gulf Coast market. References to industry benchmarks for refining market margins are to industry prices reported by Platts, a division of S&P Global.


									Three Months Ended
		Three Months Ended March 31,			March 31,				December 31,		March 31,
Millions of dollars	Millions of dollars		2021			2020		Millions of dollars	2022		2021		2021
Sales and other operating revenues	Sales and other operating revenues		$	1,126		$	1,448	Sales and other operating revenues	$	2,720	$	2,643	$	1,126
EBITDA	EBITDA		(110)			(272)		EBITDA	148		(474)		(110)

Thousands of barrels per day	Thousands of barrels per day							Thousands of barrels per day
Heavy crude oil processing rates	Heavy crude oil processing rates		152			226		Heavy crude oil processing rates	255		266		152

Market margins, dollars per barrel	Market margins, dollars per barrel							Market margins, dollars per barrel
Brent - 2-1-1	Brent - 2-1-1		$	10.57		$	7.43	Brent - 2-1-1	$	22.31	$	15.54	$	10.57
Brent - Maya differential	Brent - Maya differential		4.75			9.79		Brent - Maya differential	8.51		8.04		4.75
Total Maya 2-1-1	Total Maya 2-1-1		$	15.32		$	17.22	Total Maya 2-1-1	$	30.82	$	23.58	$	15.32

3233

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~~Revenues~~Revenue—Revenues ~~decreased~~increased by ~~$322~~$77 million, or ~~22%~~3%, in the first quarter of 2022 compared to the fourth quarter of 2021 and by $1,594 million, or 142%, in the first quarter of 2022 compared to the first quarter of ~~2020. Heavy~~2021.

First quarter of 2022 versus fourth quarter of 2021—Higher product prices led to a revenue increase of 10% due to an average Brent crude oil ~~processing rates~~price increase of approximately $18 per barrel. Sales volumes decreased ~~during~~resulting in a 7% decrease in revenue due to the impact of downtime associated with unplanned outages at one of our coking units.

First quarter of 2022 versus first quarter of 2021—Higher product prices led to a revenue increase of 87% due to an average Brent crude oil price increase of approximately $36 per barrel. Sales volumes increased resulting in a 55% increase in revenue due to improved supply and demand as the first quarter of 2021 ~~due to~~was impacted by planned and unplanned outages, including the effects of unusually cold temperatures and associated electrical power outages that led to shutdowns of our manufacturing facilities in Texas. ~~This decline~~

EBITDA—EBITDA increased by $622 million, or 131%, in ~~sales volumes resulted~~the first quarter of 2022 compared to the fourth quarter of 2021 and by $258 million, or 235%, in ~~a 32% reduction in revenue. This decrease was partially offset by higher product prices, which led~~the first quarter of 2022 compared to ~~a revenue increase of 10% due to an average Brent crude oil price increase of approximately $10 per barrel in~~ the first quarter of 2021.

~~EBITDA~~

First quarter of 2022 versus fourth quarter of 2021—~~EBITDA increased by $162~~During the fourth quarter of 2021, we recognized a non-cash impairment charge of $624 million ~~or 60%, in~~relating to our Houston refinery’s asset group as well as a $52 million LIFO inventory benefit; no similar items were incurred during the first quarter of ~~2021 compared to the first quarter of 2020. First quarter 2020 results included a $192 million LCM inventory valuation charge primarily~~2022. Margin improvements, driven by ~~a decline in the price of crude oil and refined products, the absence of a similar charge in the first quarter 2021 resulted in a 71% change in EBITDA. This~~an increase in the first quarter of 2021 was partially offset by a 7% decrease in EBITDA due to lower heavy crude oil processing rates driven by the impact of facility outages as discussed above and lower demand for transportation fuels. Margin declines resulted in a 4% decrease in EBITDA driven by a decrease in the Maya 2-1-1 market margin, resulted in a 13% increase in EBITDA. Volumes declined as a result of unplanned maintenance which resulted in a 3% decrease in EBITDA.

First quarter of 2022 versus first quarter of 2021—Volumes increased as demand improved for refined products which resulted in a 8% increase in EBITDA. The remaining increase in EBITDA was driven by margin improvements due to ~~tighter heavy oil supply and a decrease~~an increase in ~~refined product demand as well as~~the Maya 2-1-1 market margin resulting from higher ~~costs~~demand.

Other—In April 2022 we announced our decision to cease operation of ~~Renewable Identification Numbers (“RINs”).~~our Houston Refinery no later than December 31, 2023. See Note 12 to the Consolidated Financial Statements for additional information.

Technology Segment

~~Overview—~~Overview—EBITDA decreased in the first quarter of 2022 compared to the fourth quarter of 2021 from lower licensing revenues and increased in the first quarter of ~~2021 compared~~2022 relative to the first ~~quarter~~ of ~~2020, primarily due to~~2021 driven by higher ~~licensing revenues.~~catalyst volumes.

The following table sets forth selected financial information for the Technology segment:


									Three Months Ended
		Three Months Ended March 31,			March 31,				December 31,		March 31,
Millions of dollars	Millions of dollars		2021			2020		Millions of dollars	2022		2021		2021
Sales and other operating revenues	Sales and other operating revenues		$	165		$	122	Sales and other operating revenues	$	181	$	257	$	165
EBITDA	EBITDA		94			56		EBITDA	103		173		94

~~Revenues—~~

Revenue—Revenues ~~increased~~decreased by ~~$43~~$76 million, or ~~35%~~30%, in the first quarter of ~~2021~~2022 compared to the ~~first~~fourth quarter of ~~2020. Higher licensing revenues resulted in a 20% increase~~2021 and increased by $16 million, or 10%, in the first quarter of ~~2021~~2022 compared to the first quarter of 2020. Higher catalyst volumes resulted in a 8% increase in revenue in the first quarter of 2021 primarily driven by a strong demand. Favorable foreign exchange impact led to a revenue increase of 7% in the first quarter of 2021.

~~EBITDA—~~

First quarter of 2022 versus fourth quarter of 2021—Licensing revenues decreased by 32% as fewer contracts reached significant milestones during the quarter. Higher catalyst volumes resulted in a 3% increase in revenue driven by continued strong demand. Changes in average catalyst sales price resulted in a revenue increase of 4%. An unfavorable foreign exchange impact decreased revenue by 5%.

Table of Contents

First quarter of 2022 versus first quarter of 2021—Higher catalyst volumes resulted in a 13% increase in revenue primarily driven by strong demand. Changes in average catalyst sales price resulted in a 3% decrease in revenue. Higher licensing revenues resulted in a 1% increase in revenue. An unfavorable foreign exchange impact decreased revenue by 1%.

EBITDA—EBITDA ~~increased~~decreased by ~~$38~~$70 million, or ~~68%~~40%, in the first quarter of 2022 compared to the fourth quarter of 2021 and increased by $9 million, or 10%, in the first quarter of 2022 compared to the first quarter of ~~2020. Higher~~2021.

First quarter of 2022 versus fourth quarter of 2021—EBITDA decreases were primarily driven by lower licensing ~~revenues~~revenue resulting from ~~more~~fewer contracts reaching significant milestones which resulted in ~~the~~a 49% decrease in revenue. This decrease was partially offset by an increase in catalyst margins driven by higher average sales prices which resulted in a 7% increase in EBITDA.

First quarter of 2022 versus first quarter of 2021 ~~compared to the first quarter of 2020~~—EBITDA improvements were driven by higher catalyst volumes which resulted in ~~a 41%~~an EBITDA increase ~~in EBITDA. Higher catalyst volumes~~of 19%. Unfavorable foreign exchange impacts resulted in ~~a 14% increase in EBITDA. Foreign exchange impacts, which on average, were favorable led to a 9% increase in~~an EBITDA ~~in the first quarter~~decrease of ~~2021.~~7%.

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FINANCIAL CONDITION

Operating, investing and financing activities of continuing operations, which are discussed below, are presented in the following table:


		Three Months Ended March 31,					Three Months Ended March 31,
Millions of dollars	Millions of dollars	2021		2020		Millions of dollars	2022		2021
Cash provided by (used in) :
Cash provided by (used in):						Cash provided by (used in):
Operating activities	Operating activities	$	571	$	542	Operating activities	$	1,502	$	571
Investing activities	Investing activities	(59)		(663)		Investing activities	(456)		(59)
Financing activities	Financing activities	(782)		884		Financing activities	(713)		(782)

Operating Activities—Cash provided by operating activities of $~~571~~1,502 million in the first quarter of ~~2021~~2022 primarily reflected earnings adjusted for non-cash items ~~payments for employee bonuses, income taxes, income from equity investments,~~ and cash used by the main components of working capital—Accounts receivable, Inventories and Accounts payable.

In the first quarter of 2022, the main components of working capital used $22 million of cash driven primarily by an increase in Inventories and Accounts receivable, partially offset by an increase in Accounts payable. The increase in Inventories was primarily due to an increase in raw material costs coupled with an increase in inventory in anticipation of turnaround activity in the I&D segment. The increase in Accounts receivable was driven by higher revenues across several of our businesses primarily driven by higher volumes and higher average sales prices. The increase in Accounts payable was primarily driven by increases in our Refining and O&P—Americas segments as a result of increased raw material and energy costs.

Cash provided by operating activities of $571 million in the first quarter of 2021 reflected earnings adjusted for non-cash items and cash used by the main components of working capital.

In the first quarter of 2021, the main components of working capital used $626 million of cash driven primarily by an increase in Accounts receivable and Inventories partially offset by an increase in Accounts payable. The increase in Accounts receivable was driven by higher revenues for our O&P—Americas, O&P—EAI, and APS segments. The increase in Inventory was primarily driven by higher inventory volumes, due to lower crude oil consumption as a result of Texas weather events, and prices within our Refining segment. The increase in Accounts payables was primarily driven by increased raw material costs.

~~Cash~~ Investing Activities~~provided~~ ~~by operating activities~~—Capital expenditures in the first quarter of ~~$542~~2022 totaled $446 million compared to $340 million in the first quarter of ~~2020 reflected earnings adjusted for non-cash items, payments for employee bonuses, income taxes,~~2021. Approximately 40% and ~~cash consumed by the main components~~55% of ~~working capital.~~

Inour capital expenditures in the first quarter of ~~2020,~~2022 and 2021, respectively, was for profit-generating growth projects, primarily our PO/TBA plant, with the main components of working capital used $110 million of cash driven primarily by a decrease in Accounts payable partially offset by a decrease in Inventories. The decrease in Accounts payable was primarily due to lower feedstock prices in our O&P–EAI segment as well as a decrease in crude oil purchases in our Refining segment. The decrease in Inventory was primarily driven by company-wide inventory reduction initiatives as well as higher sales volumes in our O&P–EAI segment comparedremaining expenditures supporting sustaining maintenance. See Note 12 to the ~~fourth quarter 2019 and turnaround activities in our I&D~~Consolidated Financial Statements for additional information regarding capital expenditures by segment.

~~Investing Activities~~—We invest cash in investment-grade and other high-quality instruments that provide adequate flexibility to redeploy funds as needed to meet our cash flow requirements while maximizing yield.

In the first ~~quarters~~quarter of ~~2021~~2022 and ~~2020~~2021, we received proceeds of ~~$226~~$8 million and $1$226 million, respectively, from the liquidation of our ~~investments~~investment in equity securities. Additionally, w~~e received proceeds of $74 million~~ in the first quarter of 2021 ~~upon the maturity~~we received proceeds of $74 million from maturities of certain available-for-sale debt securities.

Capital expenditures for the first three months of 2021 totaled $340 million compared to $660 million for the first three months of 2020, resulting in a decrease of $320 million or 48% in 2021 compared to 2020. ~~Reduced spending within our I&D segment accounted for 32% of the decline which was driven by decreased spending at our PO/TBA plant.~~ ~~Additionally, spending in our O&P—Americas segment decreased by 21% due to the completion of our~~ ~~Hyperzone~~ polyethylene plant in 2020 and a decline in other plant improvement projects in 2021. See Note 12 to the Consolidated Financial Statements for additional information regarding capital spending by segment.

Financing Activities—In the first quarter of 2022, we made payments of $217 million to repurchase outstanding ordinary shares. We made dividend payments totaling ~~$352~~$371 million and ~~$351~~$352 million in the first ~~quarters~~quarter of ~~2021~~2022 and ~~2020,~~2021, respectively.

In ~~January 2021,~~the first quarter of 2022, we ~~repaid $500~~made net repayments of $169 million ~~outstanding~~related to the issuance and repurchase of commercial paper instruments under our ~~Term Loan due 2022.~~commercial paper program.

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In the first ~~quarters~~quarter of ~~2021~~2022 and ~~2020~~2021, we received a return of collateral of ~~$66~~$51 million and ~~posted collateral of $238~~$66 million, respectively, related to the positions held with our counterparties for certain forward-starting interest rate swaps.

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~~In March 2020, we borrowed $500 million from our Senior Revolving Credit Facility and $500 million from our U.S. Receivables Facility to increase our liquidity.~~

In the first quarter ~~2020,~~of 2021, we ~~received net proceeds of $516~~repaid $500 million ~~through the issuance and repurchase of commercial paper instruments~~outstanding under our ~~commercial paper program.~~

~~Additional information related to the issuance of debt and commercial paper can be found in Note 6 to the Consolidated Financial Statements.~~$4,000 million senior unsecured delayed draw term loan credit facility due March 2022.

Liquidity and Capital Resources

Overview

We plan to fund our ~~ongoing~~ working capital, capital expenditures, debt service, dividends and other ~~funding~~cash requirements with our current available liquidity and cash from operations, which could be affected by general economic, financial, competitive, legislative, regulatory, business and other factors, many of which are beyond our control. Cash and cash equivalents, cash from our short-term investments, cash from operating activities, proceeds from the issuance of debt, or a combination thereof, may be used to fund the purchase of shares under our share repurchase authorization.

We intend to continue to declare and pay quarterly dividends, with the goal of increasing the dividend over time, after giving consideration to our cash balances and expected results from operations. Our focus on funding our dividends while remaining committed to a strong investment grade balance sheet continues to be the foundation of our capital ~~deployment~~allocation strategy. ~~In the near term, we are prioritizing debt reduction on our balance sheet.~~

Cash and Liquid Investments

As of March 31, ~~2021,~~2022, we had Cash and cash equivalents ~~and marketable securities classified as Short-term investments~~ totaling ~~$1,835~~$1,785 million, which includes ~~$1,197~~$1,024 million in jurisdictions outside of the U.S., principally in the United Kingdom. There are currently no legal or economic restrictions that would materially impede our transfers of cash.

Credit Arrangements

At March 31, ~~2021,~~2022, we had total debt, including current maturities, of ~~$15,425 million, and $197~~$11,324 million. Additionally, we had $211 million of outstanding letters of credit, bank guarantees and surety bonds issued under uncommitted credit ~~facilities.~~facilities to support trade payables and other obligations.

We had total unused availability under our credit facilities of ~~$2,905~~$4,115 million at March 31, ~~2021,~~2022, which included the following:

•$~~2,005~~3,215 million under our ~~$2,500~~$3,250 million Senior Revolving Credit Facility, which backs our $2,500 million commercial paper program. Availability under this facility is net of outstanding borrowings, outstanding letters of credit provided under the facility and notes issued under our commercial paper program. ~~A small portion of our availability under this facility is impacted by changes in the euro/U.S. dollar exchange rate.~~ At March 31, ~~2021,~~2022, we had ~~$500~~$35 million of outstanding commercial paper, net of discount, and no borrowings or letters of credit outstanding under this facility; and

•$900 million under our $900 million U.S. Receivables Facility. Availability under this facility is subject to a borrowing base of eligible receivables, which is reduced by outstanding borrowings and letters of credit, if any. At March 31, ~~2021,~~2022, we had no borrowings or letters of credit outstanding under this facility.

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We believe that our recent value-driven growth investments should benefit us over the coming years. With an improving outlook for cash generation, we remain committed to further strengthening our investment grade balance sheet through deleveraging. In January 2021, we repaid $500 million outstanding under our Term Loan due 2022. An additional $500 million was repaid in April 2021. We expect that our robust cash generation from operations should continue throughout the year and our top priority for capital deployment in 2021 is debt reduction, which will enable meaningful progress toward improving our credit metrics to two times total debt to EBITDA.

At any time and from time to time, we may repay or redeem our outstanding debt, including purchases of our outstanding bonds in the open market, through privately negotiated transactions or a combination thereof, in each case using cash and cash equivalents, cash from our short-term investments, cash from operating activities, proceeds from the issuance of debt or proceeds from asset divestitures. Any repayment or redemption of our debt will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. In connection with such repurchases or redemptions, we may incur cash and non-cash charges, which could be material in the period in which they are incurred.

In accordance with our current interest rate risk management strategy and subject to management’s evaluation of market conditions and the availability of favorable interest rates among other factors, we may from time to time enter into interest rate swap agreements to economically convert a portion of our fixed rate debt to variable rate debt or convert a portion of our variable rate debt to fixed rate debt.

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Share Repurchases

In May 2021, our shareholders approved a proposal to authorize us to repurchase up to 34.0 million ordinary shares, through November 28, 2022 (“2021 Share Repurchase Authorization”), which superseded any prior repurchase authorizations. Our share repurchase authorization does not have a stated dollar amount, and purchases may be made through open market purchases, private market transactions or other structured transactions. Repurchased shares could be retired or used for general corporate purposes, including for various employee benefit and compensation plans. The maximum number of shares that may yet be purchased is not necessarily an indication of the number of shares that will ultimately be purchased. In the first quarter of 2022, we purchased approximately 2.1 million shares under our 2021 Share Repurchase Authorization for $202 million.

As of April 27, 2022, we had approximately 26.7 million shares remaining under the current authorization. The timing and amounts of additional shares repurchased, if any, will be determined based on our evaluation of market conditions and other factors, including any additional authorizations approved by our shareholders. For additional information related to our share repurchase authorizations, see Note 10 to the Consolidated Financial Statements.

CURRENT BUSINESS OUTLOOK

~~With no significant planned maintenance~~We expect typical improvements in summer seasonal demand will extend market strength for our ~~assets during~~products as the global economy continues to navigate geopolitical uncertainty and volatile costs for energy and feedstocks. Outside of China, we anticipate benefits from continued demand for consumer packaging, improving volumes for automotive polymer compounds, seasonal demand for durable goods used in building and construction markets as well as strong markets for our oxyfuels products. We forecast a favorable outlook for our refining segment as we work toward exiting the business by the end of next year. In the second quarter, margins are likely to improve as the prices for our products catch up with increased feedstock and energy costs. Additionally, we ~~plan to operate at nearly full capacity worldwide to meet improved demand that is expected to persist due to low inventories and~~expect reductions in operating rates driven by maintenance downtime ~~across our industry. Strong North American integrated polyethylene margins should~~in Europe and unsustainable production economics in China to tighten market supply over the coming months. We continue ~~as U.S. producers seek to fulfill domestic order backlogs, rebuild inventories~~monitoring risks on supply chains and serve export demand. During the second half of 2021, increased mobility should drive higher demand for gasoline and jet fuel, improving margins for our Refining and I&D segments. We also expect that moderating feedstock costs will increase second quarter margins for our Advanced Polymer Solutions segment.inflation.

ACCOUNTING AND REPORTING CHANGES

For a discussion of the potential impact of new accounting pronouncements on our Consolidated Financial Statements, see Note 2 to the Consolidated Financial Statements.

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CAUTIONARY STATEMENT FOR THE PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This report includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You can identify our forward-looking statements by the words “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target” and similar expressions.

We based forward-looking statements on our current expectations, estimates and projections of our business and the industries in which we operate. We caution you that these statements are not guarantees of future performance. They involve assumptions about future events that, while made in good faith, may prove to be incorrect, and involve risks and uncertainties we cannot predict. Our actual outcomes and results may differ materially from what we have expressed or forecast in the forward-looking statements. Any differences could result from a variety of factors, including the following:

•the cost of raw materials represents a substantial portion of our operating expenses, and energy costs generally follow price trends of crude oil, natural gas liquids and/or natural gas; price volatility can significantly affect our results of operations and we may be unable to pass raw material and energy cost increases on to our customers due to the significant competition that we face, the commodity nature of our products and the time required to implement pricing changes;

•our operations in the United States (“U.S.”) have benefited from low-cost natural gas and natural gas liquids; decreased availability of these materials (for example, from their export or regulations impacting hydraulic fracturing in the U.S.) could reduce the current benefits we receive;

•if crude oil prices fall materially, or remain low relative to U.S. natural gas prices, we would see less benefit from low-cost natural gas and natural gas liquids and it could have a negative effect on our results of operations;

•industry production capacities and operating rates may lead to periods of oversupply and low profitability;

•we may face unplanned operating interruptions (including leaks, explosions, fires, weather-related incidents, mechanical failures, unscheduled downtime, supplier disruptions, labor shortages, strikes, work stoppages or other labor difficulties, transportation interruptions, spills and releases and other environmental incidents) at any of our facilities, which would negatively impact our operating results; for example, because the Houston refinery is our only refining operation, we would not have the ability to increase production elsewhere to mitigate the impact of any outage at that facility;

•changes in general economic, business, political and regulatory conditions in the countries or regions in which we operate could increase our costs, restrict our operations and reduce our operating results;

•our ability to execute our organic growth plans may be negatively affected by our ability to complete projects on time and on budget;

•our ability to acquire new businesses and assets and integrate those operations into our existing operations and make cost-saving changes in operations;

•uncertainties associated with worldwide economies could create reductions in demand and pricing, as well as increased counterparty risks, which could reduce liquidity or cause financial losses resulting from counterparty default;

•uncertainties related to the extent and duration of the pandemic-related decline in demand, or other impacts due to the pandemic in geographic regions or markets served by us, or where our operations are located, including the risk of prolonged recession;

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•the negative outcome of any legal, tax and environmental proceedings or changes in laws or regulations regarding legal, tax and environmental matters may increase our costs, reduce demand for our products, or otherwise limit our ability to achieve savings under current regulations;

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•any loss or non-renewal of favorable tax treatment under agreements or treaties, or changes in laws, regulations or treaties, may substantially increase our tax liabilities;

•we may be required to reduce production or idle certain facilities because of the cyclical and volatile nature of the supply-demand balance in the chemical and refining industries, which would negatively affect our operating results;

•we rely on continuing technological innovation, and an inability to protect our technology, or others’ technological developments could negatively impact our competitive position;

•we may be unable to meet our sustainability goals, including the ability to operate safely, increase production of recycled and renewable-based polymers, and reduce our emissions;

•we may be unable to shut down the Houston refinery within the expected timeframe or incur additional charges or expenses;

•we have significant international operations, and fluctuations in exchange rates, valuations of currencies and our possible inability to access cash from operations in certain jurisdictions on a tax-efficient basis, if at all, could negatively affect our liquidity and our results of operations;

•we are subject to the risks of doing business at a global level, including wars, terrorist activities, political and economic instability and disruptions and changes in governmental policies, which could cause increased expenses, decreased demand or prices for our products and/or disruptions in operations, all of which could reduce our operating results;

•if we are unable to comply with the terms of our credit facilities, indebtedness and other financing arrangements, those obligations could be accelerated, which we may not be able to repay; and

•we may be unable to incur additional indebtedness or obtain financing on terms that we deem acceptable, including for refinancing of our current obligations; higher interest rates and costs of financing would increase our expenses.

Any of these factors, or a combination of these factors, could materially affect our future results of operations and the ultimate accuracy of the forward-looking statements. Our management cautions against putting undue reliance on forward-looking statements or projecting any future results based on such statements or present or prior earnings levels.

All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section and any other cautionary statements that may accompany such forward-looking statements. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our exposure to market and regulatory risks is described in Item 7A of our Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021. Our exposure to such risks has not changed materially in the three months ended March 31, ~~2021.~~2022.

Item 4. CONTROLS AND PROCEDURES

As of March 31, ~~2021,~~2022, with the participation of our management, our Chief Executive Officer (principal executive officer) and our Chief Financial Officer (principal financial and accounting officer) carried out an evaluation, pursuant to Rule 13a-15(b) of the Securities Exchange Act of 1934, as amended (the ~~Act)~~“Act”), of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Act). Based upon that evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures were effective as of March 31, ~~2021.~~2022.

There have been no changes in our internal controls over financial reporting, as defined in Rule 13a-15(f) of the Act, in the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

Information regarding our litigation and ~~other~~ legal proceedings can be found in Note 9 to the Consolidated Financial Statements, which is incorporated into this Item 1 by reference.

In September 2013, U.S. Environmental Protection Agency (“EPA”) Region V issued a Notice and Finding of Violation alleging violations at our Morris, Illinois facility related to flaring activity. The Notice generally alleges failures to monitor steam usage and improper flare operations. In the Fall of 2020, EPA referred the matter to the U.S. Department of Justice (“DOJ”) and EPA Headquarters for civil judicial enforcement. In March 2022, EPA and DOJ made a revised penalty demand of $324,000. We are currently engaged in discussions to finalize the terms of a settlement agreement.

Additional information about our ~~other~~ environmental proceedings can be found in Part I, Item 3 of our ~~2020~~2021 Annual Report on Form 10-K, which is incorporated into this Item 1 by reference.

Item 1A. RISK FACTORS

There have been no material changes to the risk factors associated with our business previously disclosed in “Item 1A. Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021.

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

~~None.~~


Issuer Purchases of Equity Securities

Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Authorizations	Maximum Number of Shares That May Yet Be Purchased Under the Plans or Authorizations
January 1 - January 31	1,041,397	$	96.24	1,041,397	27,799,832
February 1 - February 28	791,081	$	99.88	791,081	27,008,751
March 1 - March 31	240,900	$	96.83	240,900	26,767,851
Total	2,073,378	$	97.70	2,073,378	26,767,851

On May 28, 2021, our shareholders approved a share repurchase authorization of up to 34,004,563 shares of our ordinary shares, through November 28, 2022, which superseded any prior repurchase authorizations. The maximum number of shares that may yet be purchased is not necessarily an indication of the number of shares that will ultimately be purchased.

Item 4. MINE SAFETY DISCLOSURES

Not applicable.

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Item 6. EXHIBITS


Exhibit Number						Description

~~10.1*+~~						~~2021 Form of Restricted Stock Unit Award Agreement~~

~~10.2*+~~						~~2021 Form of Performance Share Unit Award Agreement~~

~~10.3*+~~						~~2021 Form of Non-Qualified Stock Option Award Agreement~~

22*						~~Subsidiary Issuers of Guaranteed Securities~~

31.1*						Certification of Principal Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934

31.2*						Certification of Principal Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934

32*						Certifications pursuant to 18 U.S.C. Section 1350

101.INS*						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*						XBRL Schema Document

101.CAL*						XBRL Calculation Linkbase Document

101.DEF*						XBRL Definition Linkbase Document

101.LAB*						XBRL Labels Linkbase Document

101.PRE*						XBRL Presentation Linkbase Document

104*						Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

~~+ Management contract or compensatory plan, contract or arrangement~~

* Filed herewith

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SIGNATURE

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.


		LYONDELLBASELL INDUSTRIES N.V.

Date:	April ~~30, 2021~~29, 2022	/s/ ~~Michael C McMurray~~Chukwuemeka A. Oyolu
		~~Michael C. McMurray~~Chukwuemeka A. Oyolu
		~~Executive~~Senior Vice President, ~~and~~
		Chief ~~Financial~~Accounting Officer and Investor Relations
		(Principal ~~Financial and~~ Accounting Officer)

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			Page
Part I – Financial Information			1

Item 1. Consolidated Financial Statements (Unaudited)			1
Consolidated Statements of Income			1
Consolidated Statements of Comprehensive Income			2
Consolidated Balance Sheets			3
Consolidated Statements of Cash Flows			5
Consolidated Statements of Shareholders’ Equity			6
Notes to the Consolidated Financial Statements			7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			2524

Item 3. Quantitative and Qualitative Disclosures About Market Risk			3840

Item 4. Controls and Procedures			3840

Part II – Other Information			3941

Item 1. Legal Proceedings			3941

Item 1A. Risk Factors			3941

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			3941

Item 4. Mine Safety Disclosures			3941

Item 6. Exhibits			4042

Signature			4143


Millions of dollars	March 31, 2021		December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	1,452	$	1,763
Restricted cash	11		2
Short-term investments	383		702
Accounts receivable:
Trade, net	3,796		3,291
Related parties	165		150
Inventories	4,632		4,344
Prepaid expenses and other current assets	1,525		1,382
Total current assets	11,964		11,634
Operating lease assets	1,466		1,492
Property, plant and equipment, at cost	21,631		21,484
Less: Accumulated depreciation	(7,241)		(7,098)
Property, plant and equipment, net	14,390		14,386
Equity investments	4,794		4,729
Goodwill	1,904		1,953
Intangible assets, net	717		751
Other assets	511		458
Total assets	$	35,746	$	35,403


		Page
1.	Basis of Presentation	8

2.	Accounting and Reporting Changes	8

3.	Revenues	9

4.	Accounts Receivable	10

5.	Inventories	10

6.	Debt	11

7.	Financial Instruments and Fair Value Measurements	13

8.	Income Taxes	17

9.	Commitments and Contingencies	18

10.	Shareholders’ Equity and Redeemable Non-controlling Interests	19

11.	Per Share Data	22

12.	Segment and Related Information	23


			Gains (Losses)				Cumulative Fair Value Hedging Adjustments Included in Carrying Amount of Debt
	Inception Year	Three Months Ended March 31,			March 31,		December 31,
Millions of dollars			2021		2020		2021		2020
Senior Notes due 2021, 6.0%	2016		$	0	$	(16)	$	0	$	0
Guaranteed Notes due 2027, 3.5%	2017		4		(80)		(98)		(102)
Guaranteed Notes due 2022, 1.875%	2018		0		1		0		0
Guaranteed Notes due 2026, 0.875%	2020		1		0		(1)		(2)
Total			$	5	$	(95)	$	(99)	$	(104)


	March 31, 2021				December 31, 2020
Millions of euro/dollars	Notional Value				Notional Value				Expiration Date
			Equivalent US$				Equivalent US$
Foreign currency	€	1,667	$	1,890	€	1,667	$	1,890	2021 to 2030


Millions of dollars	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

Debt securities at March 31, 2021	$	265	$	1	$	0	$	266
Debt securities at December 31, 2020	348		1		0		349