Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 16, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2019 | |
Entity File Number | 001-32410 | |
Entity Registrant Name | CELANESE CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 98-0420726 | |
Entity Address, Address Line One | 222 W. Las Colinas Blvd., Suite 900N | |
Entity Address, City or Town | Irving | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75039-5421 | |
City Area Code | 972 | |
Local Phone Number | 443-4000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Small Reporting Company | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 123,740,349 | |
Entity Central Index Key | 0001306830 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | CE | |
Security Exchange Name | NYSE | |
Senior Unsecured Notes Due 2023 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.125% Senior Notes due 2023 | |
Trading Symbol | CE /23 | |
Security Exchange Name | NYSE | |
Senior Unsecured Notes Due 2025 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.250% Senior Notes due 2025 | |
Trading Symbol | CE /25 | |
Security Exchange Name | NYSE | |
Senior Unsecured Notes Due 2027 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 2.125% Senior Notes due 2027 | |
Trading Symbol | CE /27 | |
Security Exchange Name | NYSE |
Unaudited Interim Consolidated
Unaudited Interim Consolidated Statement of Operations - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net sales | $ 1,592 | $ 1,844 | $ 3,279 | $ 3,695 |
Cost of sales | (1,169) | (1,323) | (2,403) | (2,659) |
Gross profit | 423 | 521 | 876 | 1,036 |
Selling, general and administrative expenses | (118) | (136) | (238) | (283) |
Amortization of intangible assets | (6) | (7) | (12) | (13) |
Research and development expenses | (17) | (18) | (33) | (36) |
Other (charges) gains, net | (98) | (3) | (94) | (3) |
Foreign exchange gain (loss), net | 1 | 3 | 6 | 2 |
Gain (loss) on disposition of businesses and assets, net | 1 | (2) | 1 | (2) |
Operating profit (loss) | 186 | 358 | 506 | 701 |
Equity in net earnings (loss) of affiliates | 39 | 56 | 89 | 114 |
Non-operating pension and other postretirement employee benefit (expense) income | 17 | 26 | 34 | 52 |
Interest expense | (29) | (32) | (60) | (65) |
Refinancing expense | 4 | 0 | 4 | 0 |
Interest income | 2 | 0 | 3 | 2 |
Dividend income - equity investments | 30 | 34 | 62 | 66 |
Other income (expense), net | (2) | 0 | (6) | 4 |
Earnings (loss) from continuing operations before tax | 239 | 442 | 624 | 874 |
Income tax (provision) benefit | (28) | (97) | (74) | (162) |
Earnings (loss) from continuing operations | 211 | 345 | 550 | 712 |
Earnings (loss) from operation of discontinued operations | (2) | 0 | (3) | (2) |
Income tax (provision) benefit from discontinued operations | 1 | 0 | 1 | 0 |
Earnings (loss) from discontinued operations | (1) | 0 | (2) | (2) |
Net earnings (loss) | 210 | 345 | 548 | 710 |
Net (earnings) loss attributable to noncontrolling interests | (1) | (1) | (2) | (3) |
Net earnings (loss) attributable to Celanese Corporation | 209 | 344 | 546 | 707 |
Amounts attributable to Celanese Corporation | ||||
Earnings (loss) from continuing operations | 210 | 344 | 548 | 709 |
Earnings (loss) from discontinued operations | (1) | 0 | (2) | (2) |
Net earnings (loss) | $ 209 | $ 344 | $ 546 | $ 707 |
Earnings (loss) per common share - basic | ||||
Continuing operations | $ 1.68 | $ 2.54 | $ 4.33 | $ 5.22 |
Discontinued operations | (0.01) | 0 | (0.01) | (0.01) |
Net earnings (loss) - basic | 1.67 | 2.54 | 4.32 | 5.21 |
Earnings (loss) per common share - diluted | ||||
Continuing operations | 1.67 | 2.52 | 4.31 | 5.19 |
Discontinued operations | (0.01) | 0 | (0.01) | (0.01) |
Net earnings (loss) - diluted | $ 1.66 | $ 2.52 | $ 4.30 | $ 5.18 |
Weighted average shares - basic | 125,289,967 | 135,589,717 | 126,409,926 | 135,752,179 |
Weighted average shares - diluted | 125,847,894 | 136,309,158 | 127,111,046 | 136,499,748 |
Unaudited Interim Consolidate_2
Unaudited Interim Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net earnings (loss) | $ 210 | $ 345 | $ 548 | $ 710 |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation gain (loss) | (11) | (66) | (4) | (17) |
Gain (loss) on cash flow hedges | (13) | 6 | (16) | 5 |
Pension and postretirement benefits gain (loss) | 0 | 0 | 0 | 1 |
Total other comprehensive income (loss), net of tax | (24) | (60) | (20) | (11) |
Total comprehensive income (loss), net of tax | 186 | 285 | 528 | 699 |
Comprehensive (income) loss attributable to noncontrolling interests | (1) | (1) | (2) | (3) |
Comprehensive income (loss) attributable to Celanese Corporation | $ 185 | $ 284 | $ 526 | $ 696 |
Unaudited Consolidated Balance
Unaudited Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Current Assets | |||
Cash and cash equivalents (variable interest entity restricted - 2019: $29; 2018: $24) | $ 491 | $ 439 | |
Trade receivables - third party and affiliates (net of allowance for doubtful accounts - 2019: $9; 2018: $10; variable interest entity restricted - 2019: $5; 2018: $6) | 971 | 1,017 | |
Non-trade receivables, net | 332 | 301 | |
Inventories | 1,011 | 1,046 | |
Marketable securities, at fair value | 27 | 31 | |
Other assets | 44 | 40 | |
Total current assets | 2,876 | 2,874 | |
Investments in affiliates | 959 | 979 | |
Property, plant and equipment (net of accumulated depreciation - 2019: $2,828; 2018: $2,803; variable interest entity restricted - 2019: $641; 2018: $659) | 3,642 | 3,719 | |
Operating Lease, Right-of-Use Asset | 209 | 0 | |
Deferred income taxes | 90 | 84 | |
Other assets (variable interest entity restricted - 2019: $3; 2018: $5) | 320 | 290 | |
Goodwill | 1,083 | [1] | 1,057 |
Intangible assets (variable interest entity restricted - 2019: $23; 2018: $23) | 327 | 310 | |
Total assets | 9,506 | 9,313 | |
Current Liabilities | |||
Short-term borrowings and current installments of long-term debt - third party and affiliates | 319 | 561 | |
Trade payables - third party and affiliates | 764 | 819 | |
Other liabilities | 302 | 343 | |
Income taxes payable | 23 | 56 | |
Total current liabilities | 1,408 | 1,779 | |
Long-term debt, net of unamortized deferred financing costs | 3,444 | 2,970 | |
Deferred income taxes | 265 | 255 | |
Uncertain tax positions | 171 | 158 | |
Benefit obligations | 545 | 564 | |
Operating Lease, Liability, Noncurrent | 192 | 0 | |
Other liabilities | 227 | 208 | |
Commitments and Contingencies | |||
Stockholders' Equity | |||
Preferred stock, $0.01 par value, 100,000,000 shares authorized (2019 and 2018: 0 issued and outstanding) | 0 | 0 | |
Common stock | 0 | 0 | |
Treasury stock, at cost (2019: 45,170,482 shares; 2018: 40,323,105 shares) | (3,347) | (2,849) | |
Additional paid-in capital | 233 | 233 | |
Retained earnings | 6,245 | 5,847 | |
Accumulated other comprehensive income (loss), net | (267) | (247) | |
Total Celanese Corporation stockholders' equity | 2,864 | 2,984 | |
Noncontrolling interests | 390 | 395 | |
Total equity | 3,254 | 3,379 | |
Total liabilities and equity | $ 9,506 | $ 9,313 | |
[1] | There were $0 million of accumulated impairment losses as of June 30, 2019 . |
Unaudited Consolidated Balanc_2
Unaudited Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 491 | $ 439 |
Allowance for doubtful accounts - trade receivables | 9 | 10 |
Trade receivables - third party and affiliates | 971 | 1,017 |
Nontrade Receivables, Current | 332 | 301 |
Accumulated depreciation | 2,828 | 2,803 |
Property, plant and equipment (net of accumulated depreciation - 2019: $2,828; 2018: $2,803; variable interest entity restricted - 2019: $641; 2018: $659) | 3,642 | 3,719 |
Other assets | 320 | 290 |
Intangible assets (variable interest entity restricted - 2019: $23; 2018: $23) | $ 327 | $ 310 |
Stockholders' Equity | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock, shares | 45,170,482 | 40,323,105 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 168,910,831 | 168,418,954 |
Common stock, shares outstanding | 123,740,349 | 128,095,849 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Current Assets | ||
Cash and cash equivalents | $ 23 | $ 24 |
Trade receivables - third party and affiliates | 5 | 6 |
Nontrade Receivables, Current | 0 | 0 |
Property, plant and equipment (net of accumulated depreciation - 2019: $2,828; 2018: $2,803; variable interest entity restricted - 2019: $641; 2018: $659) | 641 | 659 |
Other assets | 3 | 5 |
Intangible assets (variable interest entity restricted - 2019: $23; 2018: $23) | $ 23 | $ 23 |
Unaudited Interim Consolidate_3
Unaudited Interim Consolidated Statement Equity - USD ($) | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] |
Balance as of the beginning of the period, shares at Dec. 31, 2017 | 135,769,256 | 32,387,713 | |||||
Total Celanese Corporation stockholders' equity at Dec. 31, 2017 | $ 0 | $ (2,031,000,000) | $ 175,000,000 | $ 4,920,000,000 | $ (177,000,000) | ||
Stock option exercises, shares | 0 | ||||||
Stock option exercises | $ 0 | 0 | |||||
Purchases of treasury stock, shares | (888,383) | ||||||
Purchases of treasury stock | $ 0 | ||||||
Stock awards, shares | 137,275 | ||||||
Stock awards | $ 0 | ||||||
Purchases of treasury stock, shares | 888,383 | 888,383 | |||||
Purchases of treasury stock, including related fees | $ (100,000,000) | $ 100,000,000 | |||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 0 | ||||||
Stock-based compensation, net of tax | $ 0 | 33,000,000 | |||||
Net earnings (loss) attributable to Celanese Corporation | 707,000,000 | 707,000,000 | |||||
Common stock dividends | 136,000,000 | ||||||
Other comprehensive income (loss), net of tax | (11,000,000) | (11,000,000) | |||||
Balance as of the end of the period, shares at Jun. 30, 2018 | 135,018,148 | 33,276,096 | |||||
Stockholders' Equity Attributable to Noncontrolling Interest at Dec. 31, 2017 | $ 412,000,000 | ||||||
Net earnings (loss) attributable to noncontrolling interests | 3,000,000 | 3,000,000 | |||||
(Distributions to) contributions from noncontrolling interests | 8,000,000 | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest at Jun. 30, 2018 | 407,000,000 | ||||||
Total Celanese Corporation stockholders' equity at Jun. 30, 2018 | 3,380,000,000 | $ 0 | $ (2,131,000,000) | 208,000,000 | 5,491,000,000 | (188,000,000) | |
Balance as of the end of the period at Jun. 30, 2018 | 3,787,000,000 | ||||||
Balance as of the beginning of the period, shares at Mar. 31, 2018 | 135,855,710 | 32,387,713 | |||||
Total Celanese Corporation stockholders' equity at Mar. 31, 2018 | $ 0 | $ (2,031,000,000) | 192,000,000 | 5,220,000,000 | (128,000,000) | ||
Stock option exercises, shares | 0 | ||||||
Stock option exercises | $ 0 | 0 | |||||
Purchases of treasury stock, shares | (888,383) | ||||||
Purchases of treasury stock | $ 0 | ||||||
Stock awards, shares | 50,821 | ||||||
Stock awards | $ 0 | ||||||
Purchases of treasury stock, shares | 888,383 | ||||||
Purchases of treasury stock, including related fees | $ 100,000,000 | ||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 0 | ||||||
Stock-based compensation, net of tax | $ 0 | 16,000,000 | |||||
Net earnings (loss) attributable to Celanese Corporation | 344,000,000 | 344,000,000 | |||||
Common stock dividends | 73,000,000 | ||||||
Other comprehensive income (loss), net of tax | (60,000,000) | (60,000,000) | |||||
Balance as of the end of the period, shares at Jun. 30, 2018 | 135,018,148 | 33,276,096 | |||||
Stockholders' Equity Attributable to Noncontrolling Interest at Mar. 31, 2018 | 412,000,000 | ||||||
Net earnings (loss) attributable to noncontrolling interests | 1,000,000 | 1,000,000 | |||||
(Distributions to) contributions from noncontrolling interests | 6,000,000 | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest at Jun. 30, 2018 | 407,000,000 | ||||||
Total Celanese Corporation stockholders' equity at Jun. 30, 2018 | 3,380,000,000 | $ 0 | $ (2,131,000,000) | 208,000,000 | 5,491,000,000 | (188,000,000) | |
Balance as of the end of the period at Jun. 30, 2018 | 3,787,000,000 | ||||||
Balance as of the beginning of the period, shares at Dec. 31, 2018 | 128,095,849 | 40,323,105 | |||||
Balance as of the beginning of the period at Dec. 31, 2018 | 3,379,000,000 | ||||||
Total Celanese Corporation stockholders' equity at Dec. 31, 2018 | $ 2,984,000,000 | $ 0 | $ (2,849,000,000) | 233,000,000 | 5,847,000,000 | (247,000,000) | |
Stock option exercises, shares | 14,045 | ||||||
Stock option exercises | $ 0 | (1,000,000) | |||||
Purchases of treasury stock, shares | (4,890,155) | ||||||
Purchases of treasury stock | $ 0 | ||||||
Stock awards, shares | 520,610 | ||||||
Stock awards | $ 0 | ||||||
Purchases of treasury stock, shares | 4,890,155 | 4,890,155 | |||||
Purchases of treasury stock, including related fees | $ (500,000,000) | $ 500,000,000 | |||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | (42,778) | ||||||
Stock-based compensation, net of tax | $ 2,000,000 | 1,000,000 | |||||
Net earnings (loss) attributable to Celanese Corporation | 546,000,000 | 546,000,000 | |||||
Common stock dividends | 148,000,000 | ||||||
Other comprehensive income (loss), net of tax | (20,000,000) | (20,000,000) | |||||
Balance as of the end of the period, shares at Jun. 30, 2019 | 123,740,349 | 45,170,482 | |||||
Stockholders' Equity Attributable to Noncontrolling Interest at Dec. 31, 2018 | 395,000,000 | 395,000,000 | |||||
Net earnings (loss) attributable to noncontrolling interests | 2,000,000 | 2,000,000 | |||||
(Distributions to) contributions from noncontrolling interests | 7,000,000 | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest at Jun. 30, 2019 | 390,000,000 | 390,000,000 | |||||
Total Celanese Corporation stockholders' equity at Jun. 30, 2019 | 2,864,000,000 | $ 0 | $ (3,347,000,000) | 233,000,000 | 6,245,000,000 | (267,000,000) | |
Balance as of the end of the period at Jun. 30, 2019 | 3,254,000,000 | ||||||
Balance as of the beginning of the period, shares at Mar. 31, 2019 | 126,612,492 | 42,285,459 | |||||
Total Celanese Corporation stockholders' equity at Mar. 31, 2019 | $ 0 | $ (3,048,000,000) | 224,000,000 | 6,114,000,000 | (243,000,000) | ||
Stock option exercises, shares | 4,108 | ||||||
Stock option exercises | $ 0 | 0 | |||||
Purchases of treasury stock, shares | (2,917,864) | ||||||
Purchases of treasury stock | $ 0 | ||||||
Stock awards, shares | 41,613 | ||||||
Stock awards | $ 0 | ||||||
Purchases of treasury stock, shares | 2,917,864 | ||||||
Purchases of treasury stock, including related fees | $ 300,000,000 | ||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | (32,841) | ||||||
Stock-based compensation, net of tax | $ 1,000,000 | 9,000,000 | |||||
Net earnings (loss) attributable to Celanese Corporation | 209,000,000 | 209,000,000 | |||||
Common stock dividends | 78,000,000 | ||||||
Other comprehensive income (loss), net of tax | (24,000,000) | (24,000,000) | |||||
Balance as of the end of the period, shares at Jun. 30, 2019 | 123,740,349 | 45,170,482 | |||||
Stockholders' Equity Attributable to Noncontrolling Interest at Mar. 31, 2019 | 392,000,000 | ||||||
Net earnings (loss) attributable to noncontrolling interests | 1,000,000 | 1,000,000 | |||||
(Distributions to) contributions from noncontrolling interests | 3,000,000 | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest at Jun. 30, 2019 | 390,000,000 | $ 390,000,000 | |||||
Total Celanese Corporation stockholders' equity at Jun. 30, 2019 | 2,864,000,000 | $ 0 | $ (3,347,000,000) | $ 233,000,000 | $ 6,245,000,000 | $ (267,000,000) | |
Balance as of the end of the period at Jun. 30, 2019 | $ 3,254,000,000 |
Unaudited Interim Consolidate_4
Unaudited Interim Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating Activities | ||
Net earnings (loss) | $ 548 | $ 710 |
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities | ||
Asset impairments | 83 | 0 |
Depreciation, amortization and accretion | 170 | 168 |
Pension and postretirement net periodic benefit cost | (30) | (46) |
Pension and postretirement contributions | (24) | (24) |
Deferred income taxes, net | (17) | 55 |
(Gain) loss on disposition of businesses and assets, net | 1 | 3 |
Stock-based compensation | 27 | 39 |
Undistributed earnings in unconsolidated affiliates | 22 | 3 |
Other, net | 13 | 10 |
Operating cash provided by (used in) discontinued operations | 0 | (1) |
Changes in operating assets and liabilities | ||
Trade receivables - third party and affiliates, net | 52 | (175) |
Inventories | 39 | (17) |
Other assets | (21) | (39) |
Trade payables - third party and affiliates | (51) | 36 |
Other liabilities | (81) | 6 |
Net cash provided by (used in) operating activities | 731 | 728 |
Investing Activities | ||
Capital expenditures on property, plant and equipment | (144) | (165) |
Acquisitions, net of cash acquired | (91) | (144) |
Proceeds from sale of businesses and assets, net | 0 | 9 |
Other, net | (8) | (31) |
Net cash provided by (used in) investing activities | (243) | (331) |
Financing Activities | ||
Net change in short-term borrowings with maturities of 3 months or less | 105 | 40 |
Proceeds from short-term borrowings | 0 | 36 |
Repayments of short-term borrowings | (12) | (39) |
Proceeds from long-term debt | (499) | 0 |
Repayments of long-term debt | (348) | (43) |
Purchases of treasury stock, including related fees | (488) | (100) |
Proceeds from Stock Options Exercised | 0 | 0 |
Common stock dividends | (148) | (136) |
(Distributions to) contributions from noncontrolling interests | (7) | (8) |
Other, net | (38) | (6) |
Net cash provided by (used in) financing activities | (437) | (256) |
Exchange rate effects on cash and cash equivalents | 1 | (9) |
Net increase (decrease) in cash and cash equivalents | 52 | 132 |
Cash and cash equivalents as of beginning of period | 439 | 576 |
Cash and cash equivalents as of end of period | $ 491 | $ 708 |
Description of the Company and
Description of the Company and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Company and Basis of Presentation | Description of the Company and Basis of Presentation Description of the Company Celanese Corporation and its subsidiaries (collectively, the "Company") is a global chemical and specialty materials company. The Company produces high performance engineered polymers that are used in a variety of high-value applications, as well as acetyl products, which are intermediate chemicals, for nearly all major industries. The Company also engineers and manufactures a wide variety of products essential to everyday living. The Company's broad product portfolio serves a diverse set of end-use applications including automotive, chemical additives, construction, consumer and industrial adhesives, consumer and medical, energy storage, filtration, food and beverage, paints and coatings, paper and packaging, performance industrial and textiles. Definitions In this Quarterly Report on Form 10-Q ("Quarterly Report"), the term "Celanese" refers to Celanese Corporation, a Delaware corporation, and not its subsidiaries. The term "Celanese US" refers to the Company's subsidiary, Celanese US Holdings LLC, a Delaware limited liability company, and not its subsidiaries. Basis of Presentation The unaudited interim consolidated financial statements for the three and six months ended June 30, 2019 and 2018 contained in this Quarterly Report were prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") for all periods presented and include the accounts of the Company, its majority owned subsidiaries over which the Company exercises control and, when applicable, variable interest entities in which the Company is the primary beneficiary. The unaudited interim consolidated financial statements and other financial information included in this Quarterly Report, unless otherwise specified, have been presented to separately show the effects of discontinued operations. In the opinion of management, the accompanying unaudited consolidated balance sheets and related unaudited interim consolidated statements of operations, comprehensive income (loss), cash flows and equity include all adjustments, consisting only of normal recurring items necessary for their fair presentation in conformity with US GAAP. Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted in accordance with rules and regulations of the Securities and Exchange Commission ("SEC"). These unaudited interim consolidated financial statements should be read in conjunction with the Company's consolidated financial statements as of and for the year ended December 31, 2018 , filed on February 7, 2019 with the SEC as part of the Company's Annual Report on Form 10-K. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the entire year. In the ordinary course of business, the Company enters into contracts and agreements relative to a number of topics, including acquisitions, dispositions, joint ventures, supply agreements, product sales and other arrangements. The Company endeavors to describe those contracts or agreements that are material to its business, results of operations or financial position. The Company may also describe some arrangements that are not material but in which the Company believes investors may have an interest or which may have been included in a Form 8-K filing. Investors should not assume the Company has described all contracts and agreements relative to the Company's business in this Quarterly Report. For those consolidated ventures in which the Company owns or is exposed to less than 100% of the economics, the outside stockholders' interests are shown as noncontrolling interests. The Company has reclassified certain prior period amounts to conform to the presentation of the Company's current reportable segments. Estimates and Assumptions The preparation of unaudited interim consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the unaudited interim consolidated financial statements and the reported amounts of Net sales, expenses and allocated charges during the reporting period. Significant estimates pertain to impairments of goodwill, intangible assets and other long-lived assets, purchase price allocations, restructuring costs and other (charges) gains, net, income taxes, pension and other postretirement benefits, asset retirement obligations, environmental liabilities and loss contingencies, among others. Actual results could differ from those estimates. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
Recent Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recent Accounting Pronouncements The following table provides a brief description of recent Accounting Standard Updates ("ASU") issued by the Financial Accounting Standards Board ("FASB"): Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters In August 2018, the FASB issued ASU 2018-14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. The new guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing disclosures that no longer are considered cost beneficial, clarifying the specific requirements of disclosures and adding disclosure requirements identified as relevant. January 1, 2020. Early adoption is permitted. The Company is currently evaluating the impact of adoption on its financial statements and related disclosures. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The new guidance allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. January 1, 2019. The Company adopted the new guidance effective January 1, 2019. The adoption of the new guidance did not have a material impact on the Company. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. Since that date, the FASB has issued additional ASUs clarifying certain aspects of ASU 2016-13. The new guidance requires financial instruments measured at amortized cost basis to be presented at the net amount expected to be collected through application of the current expected credit losses model. The model requires an estimate of the credit losses expected over the life of an exposure or pool of exposures. The income statement will reflect the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. January 1, 2020. Early adoption is permitted. The Company is currently evaluating the impact of adoption on its financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases. Since that date, the FASB has issued additional ASUs clarifying certain aspects of ASU 2016-02. The new guidance supersedes the lease guidance under FASB Accounting Standards Codification ("ASC") Topic 840, Leases, resulting in the creation of FASB ASC Topic 842, Leases. The guidance requires a lessee to recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for both finance and operating leases. Subsequent guidance issued after February 2016 did not change the core principle of ASU 2016-02. January 1, 2019. The Company adopted the new guidance effective January 1, 2019, using the modified retrospective transition method, which did not require the Company to adjust comparative periods. See the Adoption of ASU 2016-02 section below for additional information. Adoption of ASU 2016-02, Leases The Company adopted ASU 2016-02 as of January 1, 2019, using the modified retrospective approach. Prior period amounts have not been adjusted. In addition, the Company elected the following practical expedients: • the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification; • the land easements practical expedient, which allowed the Company to carry forward the accounting treatment for land easements on existing agreements; • the short-term lease practical expedient, which allowed the Company to exclude short-term leases from recognition in the unaudited consolidated balance sheets; and • the bifurcation of lease and non-lease components practical expedient, which did not require the Company to bifurcate lease and non-lease components for all classes of assets. The adoption of this accounting standard resulted in the recording of Operating lease right-of-use ("ROU") assets and Operating lease liabilities of $223 million and $240 million , respectively, as of January 1, 2019. The difference between the operating lease assets and liabilities was recorded as an adjustment to Other liabilities, primarily related to deferred rent (lease incentives). The adoption of ASU 2016-02 had no impact on Retained earnings. See Note 16 for additional information. |
Acquisitions, Dispositions and
Acquisitions, Dispositions and Plant Closures | 6 Months Ended |
Jun. 30, 2019 | |
Acquisitions, Dispositions and Plant Closures [Abstract] | |
Acquisitions, Dispositions and Plant Closures [Text Block] | Acquisitions, Dispositions and Plant Closures Plant Closures • Ocotlán, Mexico On June 28, 2019, the Company announced it will consolidate its global acetate manufacturing capabilities with the closure of its acetate flake manufacturing operations in Ocotlán, Mexico. The Ocotlán, Mexico operations are included in the Company's Acetate Tow segment. The exit and shutdown costs related to this closure are as follows: Three Months Ended June 30, 2019 (In $ millions) Asset impairments (1) 83 Restructuring (1) 1 Accelerated depreciation expense 1 Total 85 ______________________________ (1) Included in Other (charges) gains, net in the consolidated statement of operations ( Note 18 ). The Company expects to incur additional exit and shutdown costs of approximately $20 million , primarily related to employee termination benefits and accelerated depreciation, through the first quarter of 2020. |
Ventures and Variable Interest
Ventures and Variable Interest Entities | 6 Months Ended |
Jun. 30, 2019 | |
Ventures and Variable Interest Entities [Abstract] | |
Ventures and Variable Interest Entities | Ventures and Variable Interest Entities Consolidated Variable Interest Entities The Company has a joint venture, Fairway Methanol LLC ("Fairway"), with Mitsui & Co., Ltd., of Tokyo, Japan ("Mitsui"), in which the Company owns 50% of Fairway, for the production of methanol at the Company's integrated chemical plant in Clear Lake, Texas. The methanol unit utilizes natural gas in the US Gulf Coast region as a feedstock and benefits from the existing infrastructure at the Company's Clear Lake facility. Both Mitsui and the Company supply their own natural gas to Fairway in exchange for methanol tolling under a cost-plus off-take arrangement. The Company determined that Fairway is a variable interest entity ("VIE") in which the Company is the primary beneficiary. Under the terms of the joint venture agreements, the Company provides site services and day-to-day operations for the methanol facility. In addition, the joint venture agreements provide that the Company indemnifies Mitsui for environmental obligations that exceed a specified threshold, as well as an equity option between the partners. Accordingly, the Company consolidates the venture and records a noncontrolling interest for the share of the venture owned by Mitsui. Fairway is included in the Company's Acetyl Chain segment. The carrying amount of the assets and liabilities associated with Fairway included in the unaudited consolidated balance sheets are as follows: As of As of (In $ millions) Cash and cash equivalents 29 24 Trade receivables, net - third party and affiliates 10 11 Property, plant and equipment (net of accumulated depreciation - 2019: $151; 2018: $130) 641 659 Intangible assets (net of accumulated amortization - 2019: $4; 2018: $3) 23 23 Other assets 3 5 Total assets (1) 706 722 Trade payables 11 16 Other liabilities (2) 3 4 Total debt 4 5 Deferred income taxes 4 3 Total liabilities 22 28 ______________________________ (1) Assets can only be used to settle the obligations of Fairway. (2) Primarily represents amounts owed by Fairway to the Company for reimbursement of expenditures. Nonconsolidated Variable Interest Entities The Company holds variable interests in entities that supply certain raw materials and services to the Company. The variable interests primarily relate to cost-plus contractual arrangements with the suppliers and recovery of capital expenditures for certain plant assets plus a rate of return on such assets. Liabilities for such supplier recoveries of capital expenditures have been recorded as finance lease obligations. The entities are not consolidated because the Company is not the primary beneficiary of the entities as it does not have the power to direct the activities of the entities that most significantly impact the entities' economic performance. The Company's maximum exposure to loss as a result of its involvement with these VIEs as of June 30, 2019 , relates primarily to the recovery of capital expenditures for certain property, plant and equipment. The carrying amount of the assets and liabilities associated with the obligations to nonconsolidated VIEs, as well as the maximum exposure to loss relating to these nonconsolidated VIEs are as follows: As of As of (In $ millions) Property, plant and equipment, net 37 42 Trade payables 28 27 Current installments of long-term debt 15 14 Long-term debt 50 58 Total liabilities 93 99 Maximum exposure to loss 124 134 The difference between the total liabilities associated with obligations to nonconsolidated VIEs and the maximum exposure to loss primarily represents take-or-pay obligations for services included in the Company's unconditional purchase obligations ( Note 19 ). |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities, at Fair Value | Marketable Securities The Company's nonqualified trusts hold available-for-sale securities for funding requirements of the Company's nonqualified pension plans. Available-for-sale securities as of June 30, 2019 and December 31, 2018 were $27 million and $31 million , respectively, and were recorded at amortized cost, which approximates fair value. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories As of As of (In $ millions) Finished goods 688 697 Work-in-process 73 70 Raw materials and supplies 250 279 Total 1,011 1,046 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, net | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure | Goodwill and Intangible Assets, Net Goodwill Engineered Materials Acetate Tow Acetyl Chain Total (In $ millions) As of December 31, 2018 707 148 202 1,057 Acquisitions 29 (1) — — 29 Exchange rate changes (2 ) — (1 ) (3 ) As of June 30, 2019 (2) 734 148 201 1,083 ______________________________ (1) Represents goodwill related to the acquisition of Next Polymers Ltd. (2) There were $0 million of accumulated impairment losses as of June 30, 2019 . Intangible Assets, Net Finite-lived intangible assets are as follows: Licenses Customer- Related Intangible Assets Developed Technology Covenants Not to Compete and Other Total (In $ millions) Gross Asset Value As of December 31, 2018 42 651 44 56 793 Acquisitions — 25 — — 25 (1) Exchange rate changes — (2 ) — — (2 ) As of June 30, 2019 42 674 44 56 816 Accumulated Amortization As of December 31, 2018 (33 ) (495 ) (32 ) (35 ) (595 ) Amortization (1 ) (8 ) (2 ) (1 ) (12 ) Exchange rate changes — 2 — — 2 As of June 30, 2019 (34 ) (501 ) (34 ) (36 ) (605 ) Net book value 8 173 10 20 211 ______________________________ (1) Represents intangible assets acquired related to Next Polymers Ltd. with a weighted average amortization period of 13 years . Indefinite-lived intangible assets are as follows: Trademarks and Trade Names (In $ millions) As of December 31, 2018 112 Acquisitions 4 Accumulated impairment losses — Exchange rate changes — As of June 30, 2019 116 For the six months ended June 30, 2019 , the Company did not renew or extend any intangible assets. Estimated amortization expense for the succeeding five fiscal years is as follows: (In $ millions) 2020 22 2021 21 2022 19 2023 17 2024 15 |
Current Other Liabilities
Current Other Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Other Liabilities, Current [Abstract] | |
Current Other Liabilities | Current Other Liabilities As of As of (In $ millions) Asset retirement obligations 7 3 Benefit obligations ( Note 11 ) 30 30 Customer rebates ( Note 21 ) 47 76 Derivatives ( Note 17 ) 3 7 Environmental ( Note 12 ) 16 20 Insurance 4 4 Interest 26 21 Operating leases ( Note 16 ) 31 — Restructuring ( Note 14 ) 15 4 Salaries and benefits 69 119 Sales and use tax/foreign withholding tax payable 17 22 Other 37 37 Total 302 343 |
Noncurrent Other Liabilities
Noncurrent Other Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Other Liabilities, Noncurrent [Abstract] | |
Noncurrent Other Liabilities | Noncurrent Other Liabilities As of As of (In $ millions) Asset retirement obligations 14 13 Deferred proceeds 44 44 Deferred revenue ( Note 21 ) 7 7 Derivatives ( Note 17 ) 42 11 Environmental ( Note 12 ) 49 49 Insurance 41 37 Other 30 47 Total 227 208 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of As of (In $ millions) Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates Current installments of long-term debt 26 367 Short-term borrowings, including amounts due to affiliates (1) 68 77 Revolving credit facility (2) 148 40 Accounts receivable securitization facility (3) 77 77 Total 319 561 ______________________________ (1) The weighted average interest rate was 2.9% and 3.2% as of June 30, 2019 and December 31, 2018 , respectively. (2) The weighted average interest rate was 1.3% and 6.0% as of June 30, 2019 and December 31, 2018 , respectively. (3) The weighted average interest rate was 3.3% and 3.1% as of June 30, 2019 and December 31, 2018 , respectively. As of As of (In $ millions) Long-Term Debt Senior unsecured notes due 2019, interest rate of 3.250% — 343 Senior unsecured notes due 2021, interest rate of 5.875% 400 400 Senior unsecured notes due 2022, interest rate of 4.625% 500 500 Senior unsecured notes due 2023, interest rate of 1.125% 852 857 Senior unsecured notes due 2024, interest rate of 3.500% 499 — Senior unsecured notes due 2025, interest rate of 1.250% 341 343 Senior unsecured notes due 2027, interest rate of 2.125% 565 568 Pollution control and industrial revenue bonds due at various dates through 2030, interest rates ranging from 4.05% to 5.00% 167 167 Nilit bank loans due at various dates through 2026 (1) 10 10 Obligations under finance leases due at various dates through 2054 156 167 Subtotal 3,490 3,355 Unamortized debt issuance costs (2) (20 ) (18 ) Current installments of long-term debt (26 ) (367 ) Total 3,444 2,970 ______________________________ (1) The weighted average interest rate was 1.3% and 1.3% as of June 30, 2019 and December 31, 2018 , respectively. (2) Related to the Company's long-term debt, excluding obligations under finance leases. Senior Credit Facilities On January 7, 2019, Celanese, Celanese US and certain subsidiary borrowers entered into a new senior credit agreement (the "Credit Agreement") consisting of a $1.25 billion senior unsecured revolving credit facility (with a letter of credit sublimit), maturing in 2024. The Credit Agreement is guaranteed by Celanese, Celanese US and substantially all of its domestic subsidiaries ("the Subsidiary Guarantors"). The Company's debt balances and amounts available for borrowing under its senior unsecured revolving credit facility are as follows: As of (In $ millions) Revolving Credit Facility Borrowings outstanding (1) 148 Letters of credit issued — Available for borrowing (2) 1,102 ______________________________ (1) The Company borrowed $869 million and repaid $763 million under its senior unsecured revolving credit facility during the six months ended June 30, 2019 . (2) The margin for borrowings under the senior unsecured revolving credit facility was 1.25% above LIBOR or EURIBOR at current Company credit ratings. Senior Notes The Company has outstanding senior unsecured notes, issued in public offerings registered under the Securities Act of 1933 ("Securities Act"), as amended (collectively, the "Senior Notes"). The Senior Notes were issued by Celanese US and are guaranteed on a senior unsecured basis by Celanese and the Subsidiary Guarantors. Celanese US may redeem some or all of each of the Senior Notes, prior to their respective maturity dates, at a redemption price of 100% of the principal amount, plus a "make-whole" premium as specified in the applicable indenture, plus accrued and unpaid interest, if any, to the redemption date. On May 8, 2019, Celanese US completed an offering of $500 million in principal amount of 3.500% senior unsecured notes due May 8, 2024 (the "3.500% Notes") in a public offering registered under the Securities Act. The 3.500% Notes were issued at a discount to par at a price of 99.895% , which is being amortized to Interest expense in the unaudited interim consolidated statement of operations over the term of the 3.500% Notes. Net proceeds from the sale of the 3.500% Notes were used to redeem in full the 3.250% senior unsecured notes due October 15, 2019 (the "3.250 Notes"), to repay $156 million of outstanding borrowings under the senior unsecured revolving credit facility and for general corporate purposes. In connection with the issuance of the 3.500% Notes, the Company entered into a cross-currency swap to effectively convert its fixed-rate US dollar denominated debt under the 3.500% Notes, including annual interest payments and the payment of principal at maturity, to fixed-rate Euro denominated debt. See Note 17 for additional information. Accounts Receivable Securitization Facility The Company has a US accounts receivable securitization facility involving receivables of certain of its domestic subsidiaries of the Company transferred to a wholly-owned, "bankruptcy remote" special purpose subsidiary of the Company ("SPE"). The facility, which permits cash borrowings and letters of credit, was amended on July 8, 2019 to extend the maturity date to July 6, 2020 and modify certain events of default, limitations on concentrations of obligors and certain of the components used to calculate the SPE reserves. All of the SPE's assets have been pledged to the administrative agent in support of the SPE's obligations under the facility. The Company's debt balances and amounts available for borrowing under its securitization facility are as follows: As of (In $ millions) Accounts Receivable Securitization Facility Borrowings outstanding 77 Letters of credit issued 29 Available for borrowing 5 Total borrowing base 111 Maximum borrowing base (1) 120 ______________________________ (1) Outstanding accounts receivable transferred to the SPE was $188 million . Other Financing Arrangements In June 2018, the Company entered into a factoring agreement with a global financial institution to sell certain accounts receivable on a non-recourse basis. These transactions are treated as a sale and are accounted for as a reduction in accounts receivable because the agreement transfers effective control over and risk related to the receivables to the buyer. The Company has no continuing involvement in the transferred receivables, other than collection and administrative responsibilities and, once sold, the accounts receivable are no longer available to satisfy creditors in the event of bankruptcy. The Company de-recognized $134 million and $117 million of accounts receivable as of June 30, 2019 and December 31, 2018 , respectively. Covenants The Company's material financing arrangements contain customary covenants, including the maintenance of certain financial ratios, events of default and change of control provisions. Failure to comply with these covenants, or the occurrence of any other event of default, could result in acceleration of the borrowings and other financial obligations. The Company is in compliance with all of the covenants related to its debt agreements as of June 30, 2019 . |
Benefit Obligations
Benefit Obligations | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Benefit Obligations | Benefit Obligations The components of net periodic benefit cost are as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Pension Post-retirement Pension Post-retirement Pension Post-retirement Pension Post-retirement (In $ millions) Service cost 2 — 3 — 4 — 5 — Interest cost 29 1 26 1 58 1 52 1 Expected return on plan assets (47 ) — (53 ) — (93 ) — (105 ) — Special termination benefit — — 1 — — — 1 — Total (16 ) 1 (23 ) 1 (31 ) 1 (47 ) 1 Benefit obligation funding is as follows: As of Total Expected 2019 (In $ millions) Cash contributions to defined benefit pension plans 11 22 Benefit payments to nonqualified pension plans 11 21 Benefit payments to other postretirement benefit plans 2 5 Cash contributions to German multiemployer defined benefit pension plans (1) 4 9 ______________________________ (1) The Company makes contributions based on specified percentages of employee contributions. The Company's estimates of its US defined benefit pension plan contributions reflect the provisions of the Pension Protection Act of 2006. |
Environmental
Environmental | 6 Months Ended |
Jun. 30, 2019 | |
Environmental Remediation Obligations [Abstract] | |
Environmental | Environmental The Company is subject to environmental laws and regulations worldwide that impose limitations on the discharge of pollutants into the air and water, establish standards for the treatment, storage and disposal of solid and hazardous wastes, and impose record keeping and notification requirements. Failure to timely comply with these laws and regulations may expose the Company to penalties. The Company believes that it is in substantial compliance with all applicable environmental laws and regulations and engages in an ongoing process of updating its controls to mitigate compliance risks. The Company is also subject to retained environmental obligations specified in various contractual agreements arising from the divestiture of certain businesses by the Company or one of its predecessor companies. The components of environmental remediation liabilities are as follows: As of As of (In $ millions) Demerger obligations ( Note 19 ) 25 26 Divestiture obligations ( Note 19 ) 13 16 Active sites 14 14 US Superfund sites 11 11 Other environmental remediation liabilities 2 2 Total 65 69 Remediation Due to its industrial history and through retained contractual and legal obligations, the Company has the obligation to remediate specific areas on its own sites as well as on divested, demerger, orphan or US Superfund sites (as defined below). In addition, as part of the demerger agreement between the Company and Hoechst AG ("Hoechst"), a specified portion of the responsibility for environmental liabilities from a number of Hoechst divestitures was transferred to the Company ( Note 19) . Certain of these sites, at which the Company maintains continuing involvement, were and continue to be designated as discontinued operations. The Company provides for such obligations when the event of loss is probable and reasonably estimable. The Company believes that environmental remediation costs will not have a material adverse effect on the financial position of the Company, but may have a material adverse effect on the results of operations or cash flows in any given period. US Superfund Sites In the US, the Company may be subject to substantial claims brought by US federal or state regulatory agencies or private individuals pursuant to statutory authority or common law. In particular, the Company has a potential liability under the US Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, and related state laws (collectively referred to as "Superfund") for investigation and cleanup costs at certain sites. At most of these sites, numerous companies, including the Company, or one of its predecessor companies, have been notified that the US Environmental Protection Agency ("EPA"), state governing bodies or private individuals consider such companies to be potentially responsible parties ("PRP") under Superfund or related laws. The proceedings relating to these sites are in various stages. The cleanup process has not been completed at most sites, and the status of the insurance coverage for some of these proceedings is uncertain. Consequently, the Company cannot accurately determine its ultimate liability for investigation or cleanup costs at these sites. As events progress at each site for which it has been named a PRP, the Company accrues, as appropriate, a liability for site cleanup. Such liabilities include all costs that are probable and can be reasonably estimated. In establishing these liabilities, the Company considers the contaminants of concern, the potential impact thereof, the relationship of the contaminants of concern to its current and historic operations, its shipment of waste to a site, its percentage of total waste shipped to the site, the types of wastes involved, the conclusions of any studies, the magnitude of any remedial actions that may be necessary and the number and viability of other PRPs. Often the Company joins with other PRPs to sign joint defense agreements that settle, among PRPs, each party's percentage allocation of costs at the site. Although the ultimate liability may differ from the estimate, the Company routinely reviews the liabilities and revises the estimate, as appropriate, based on the most current information available. One such site is the Diamond Alkali Superfund Site, which is comprised of a number of sub-sites, including the Lower Passaic River Study Area ("LPRSA"), which is the lower 17-mile stretch of the Passaic River ("Lower Passaic River Site"), and the Newark Bay Area. The Company and 70 other companies are parties to a May 2007 Administrative Order on Consent with the EPA to perform a Remedial Investigation/Feasibility Study ("RI/FS") at the Lower Passaic River Site in order to identify the levels of contaminants and potential cleanup actions, including the potential migration of contaminants between the Lower Passaic River Site and the Newark Bay Area. Work on the RI/FS is ongoing. In March 2016, the EPA issued its final Record of Decision concerning the remediation of the lower 8.3 miles of the Lower Passaic River Site ("Lower 8.3 Miles"). Pursuant to the EPA's Record of Decision, the Lower 8.3 Miles must be dredged bank to bank and an engineered cap must be installed at an EPA estimated cost of approximately $1.4 billion . The Company owned and/or operated facilities in the vicinity of the Lower 8.3 Miles, but has found no evidence that it contributed any of the contaminants of concern to the Passaic River. On June 30, 2018, Occidental Chemical Corporation ("OCC") , the successor to the Diamond Alkali Company, sued a subsidiary of the Company and 119 other parties alleging claims for joint and several damages, contribution and declaratory relief under Section 107 and 113 of Superfund for costs to clean up the LPRSA portion of the Diamond Alkali Superfund Site, Occidental Chemical Corporation v. 21st Century Fox America, Inc., et al, No. 2:18-CV-11273-JLL-JAD (U.S. District Court New Jersey), alleging that each of the defendants owned or operated a facility that contributed contamination to the LPRSA. With respect to the Company, the OCC lawsuit is limited to the former Celanese facility that Essex County, New Jersey has agreed to indemnify the Company for and does not change the Company's estimated liability for LPRSA cleanup costs. The Company is vigorously defending these matters and currently believes that its ultimate allocable share of the cleanup costs with respect to the Lower Passaic River Site, estimated at less than 1% , will not be material to the Company's results of operations, cash flows or financial position. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common Stock The Company's Board of Directors follows a policy of declaring, subject to legally available funds, a quarterly cash dividend on each share of the Company's Common Stock, unless the Company's Board of Directors, in its sole discretion, determines otherwise. The amount available to the Company to pay cash dividends is not currently restricted by its existing senior credit facility and its indentures governing its senior unsecured notes. Any decision to declare and pay dividends in the future will be made at the discretion of the Company's Board of Directors and will depend on, among other things, the results of operations, cash requirements, financial condition, contractual restrictions and other factors that the Company's Board of Directors may deem relevant. The Company's Board of Directors approved increases in the Company's Common Stock cash dividend rates as follows: Increase Quarterly Common Stock Cash Dividend Annual Common Stock Cash Dividend Effective Date (In percentages) (In $ per share) April 2018 17 0.54 2.16 May 2018 April 2019 15 0.62 2.48 May 2019 The Company declared a quarterly cash dividend of $0.62 per share on its Common Stock on July 15, 2019 , amounting to $77 million . The cash dividend will be paid on August 5, 2019 to holders of record as of July 26, 2019 . Treasury Stock Six Months Ended Total From 2019 2018 Shares repurchased 4,890,155 888,383 52,602,866 Average purchase price per share $ 102.25 $ 112.56 $ 69.44 Shares repurchased (in $ millions) $ 500 $ 100 $ 3,653 Aggregate Board of Directors repurchase authorizations during the period (in $ millions) (1) $ 1,500 $ — $ 5,366 ______________________________ (1) These authorizations give management discretion in determining the timing and conditions under which shares may be repurchased. This repurchase program began in February 2008 and does not have an expiration date. The purchase of treasury stock reduces the number of shares outstanding. The repurchased shares may be used by the Company for compensation programs utilizing the Company's stock and other corporate purposes. The Company accounts for treasury stock using the cost method and includes treasury stock as a component of stockholders' equity. Other Comprehensive Income (Loss), Net Three Months Ended June 30, 2019 2018 Gross Amount Income Tax (Provision) Benefit Net Amount Gross Amount Income Tax (Provision) Benefit Net (In $ millions) Foreign currency translation gain (loss) (12 ) 1 (11 ) (72 ) 6 (66 ) Gain (loss) on cash flow hedges (19 ) 6 (13 ) 6 — 6 Pension and postretirement benefits gain (loss) — — — — — — Total (31 ) 7 (24 ) (66 ) 6 (60 ) Six Months Ended June 30, 2019 2018 Gross Income Net Gross Income Net (In $ millions) Foreign currency translation gain (loss) 1 (5 ) (4 ) (27 ) 10 (17 ) Gain (loss) on cash flow hedges (22 ) 6 (16 ) 4 1 5 Pension and postretirement benefits gain (loss) — — — 1 — 1 Total (21 ) 1 (20 ) (22 ) 11 (11 ) Adjustments to Accumulated other comprehensive income (loss), net, are as follows: Foreign Currency Translation Gain (Loss) Gain (Loss) on Cash Flow Hedges ( Note 17 ) Pension and Postretirement Benefits Gain (Loss) ( Note 11 ) Accumulated Other Comprehensive Income (Loss), Net (In $ millions) As of December 31, 2018 (236 ) (8 ) (3 ) (247 ) Other comprehensive income (loss) before reclassifications 1 (18 ) — (17 ) Amounts reclassified from accumulated other comprehensive income (loss) — (4 ) — (4 ) Income tax (provision) benefit (5 ) 6 — 1 As of June 30, 2019 (240 ) (24 ) (3 ) (267 ) |
Other (Charges) Gains, Net
Other (Charges) Gains, Net | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Other (Charges) Gains, Net | Other (Charges) Gains, Net Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In $ millions) Restructuring (15 ) (3 ) (14 ) (3 ) Asset impairments (83 ) — (83 ) — Plant/office closures — — (1 ) — Commercial disputes — — 4 — Total (98 ) (3 ) (94 ) (3 ) During the three months ended June 30, 2019 , the Company recorded an $83 million long-lived asset impairment loss related to the closure of its acetate flake manufacturing operations in Ocotlán, Mexico ( Note 3 ). The long-lived asset impairment loss was measured at the date of impairment to write-off the related property, plant and equipment and was included in the Company's Acetate Tow segment. During the six months ended June 30, 2019 , the Company recorded a $15 million gain within commercial disputes related to a settlement from a previous acquisition that was included within the Engineered Materials segment. The Company also recorded an $11 million loss within commercial disputes related to a settlement by the Company's captive insurer with a former third-party customer, which was included within the Other Activities segment. During the six months ended June 30, 2019 and June 30, 2018 , the Company recorded $14 million and $3 million , respectively, of employee termination benefits primarily related to Company-wide business optimization projects. The changes in the restructuring liability by business segment are as follows: Engineered Materials Acetate Tow Acetyl Chain Other Total (In $ millions) Employee Termination Benefits As of December 31, 2018 — 2 2 — 4 Additions 8 1 1 5 15 Cash payments (1 ) (2 ) — — (3 ) Other changes — — (1 ) — (1 ) Exchange rate changes — — — — — As of June 30, 2019 7 1 2 5 15 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Three Months Ended Six Months Ended 2019 2018 2019 2018 (In percentages) Effective income tax rate 12 22 12 19 The lower effective income tax rate for the three and six months ended June 30, 2019 compared to the same period in 2018 was primarily due to 2019 reductions in the valuation allowance on foreign tax credits that resulted from greater forecasted utilization of credits prior to the expiration of their carryforward period. During the three and six months ended June 30, 2018, and prior to the receipt of any regulatory guidance from the Treasury related to various provisions of the Tax Cuts and Jobs Act ("TCJA"), the Company recorded additional valuation allowances on prior year foreign tax credit carryforwards due to uncertainty regarding the treatment of future income and credits generated under the global low-taxed intangible income ("GILTI") provisions, which were enacted as part of TCJA. The Company evaluates its deferred tax assets on a quarterly basis to determine whether a valuation allowance is necessary. Realization of deferred tax assets ultimately depends on the existence of sufficient taxable income in the applicable carryback or carryforward periods. Changes in the Company's estimates of future taxable income and prudent and feasible tax planning strategies will affect the estimate of the realization of the tax benefits of these foreign tax credit carryforwards. Due to the TCJA and uncertainty as to future sources of general limitation foreign source income to allow for the utilization of these credits, the Company recorded a valuation allowance on a substantial portion of its foreign tax credits upon the enactment of the TCJA in December 2017. The Company is currently evaluating tax planning strategies that would utilize the Company's foreign tax credit carryforwards. Implementation of these strategies in future periods could reduce the level of valuation allowance that is needed, thereby decreasing the Company's effective tax rate. On March 6, 2019, the US Department of Treasury issued proposed regulations clarifying the deduction for GILTI and Foreign-Derived Intangible Income ("FDII"), which were enacted as part of the TCJA. The Company currently does not expect these regulations to have a material impact on tax expense upon final adoption and will evaluate the impact of final guidance once it is released. On June 14, 2019, the US Department of Treasury released proposed and final regulations clarifying the GILTI inclusion and temporary and proposed regulations clarifying the dividends received deduction for foreign dividends paid to the US that were enacted as part of the TCJA. The Company currently does not expect these regulations to have a material impact on tax expense and will evaluate the impact of further guidance as it is released. In connection with the Company's US federal income tax audit for 2009 and 2010, the Company entered into a closing agreement during the three months ended March 31, 2019, which did not impact any previously recorded amounts based on settlement discussions prior to the formal closing agreement. In January 2018, the Company received proposed pre-tax adjustments for its 2011 and 2012 audit cycle in the amount of $198 million . In the event the Company is wholly unsuccessful in its defense and absent expected offsetting adjustments from foreign tax authorities, the proposed adjustments would result in the consumption of approximately $69 million of prior foreign tax credit carryforwards, which are substantially offset with a valuation allowance due to uncertain recoverability. The Company believes these proposed adjustments to be without merit and is vigorously defending its position. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain real estate, fleet assets, warehouses and equipment. Leases with an initial term of 12 months or less ("short-term leases") are not recorded on the unaudited consolidated balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company determines if an arrangement is a lease at inception. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Company's leases do not provide an implicit rate of return, the Company uses its imputed collateralized rate based on the information available at commencement date in determining the present value of lease payments. Operating lease ROU assets are comprised of the lease liability plus prepaid rents and are reduced by lease incentives or deferred rents. The Company has lease agreements with non-lease components which are not bifurcated. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 30 years. The exercise of a lease renewal option typically occurs at the discretion of both parties. Certain leases also include options to purchase the leased property. For purposes of calculating operating lease liabilities, lease terms are deemed not to include options to extend the lease termination until it is reasonably certain that the Company will exercise that option. Certain of the Company's lease agreements include payments adjusted periodically for inflation based on the consumer price index. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease expense are as follows: Three Months Ended June 30, Six Months Ended June 30, Statement of Operations Classification 2019 (In $ millions) Lease Cost Operating lease cost 10 20 Cost of sales / Selling, general and administrative expenses Short-term lease cost 5 10 Cost of sales / Selling, general and administrative expenses Variable lease cost 2 4 Cost of sales / Selling, general and administrative expenses Finance lease cost Amortization of leased assets 4 9 Cost of sales Interest on lease liabilities 5 10 Interest expense Sublease income — — Other income (expense), net Total net lease cost 26 53 Supplemental unaudited consolidated balance sheet information related to leases is as follows: As of Balance Sheet Classification (In $ millions) Leases Assets Operating lease assets 209 Operating lease ROU assets Finance lease assets 94 Property, plant and equipment, net Total leased assets 303 Liabilities Current Operating 31 Current Other liabilities Finance 24 Short-term borrowings and current installments of long-term debt Noncurrent Operating 192 Operating lease liabilities Finance 132 Long-term debt Total lease liabilities 379 As of June 30, 2019 Weighted-Average Remaining Lease Term (years) Operating leases 15.0 Finance leases 7.1 Weighted-Average Discount Rate Operating leases 2.7 % Finance leases 11.7 % Supplemental unaudited interim consolidated cash flow information related to leases is as follows: Six Months Ended (In $ millions) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 20 Operating cash flows from finance leases 10 Financing cash flows from finance leases 11 ROU assets obtained in exchange for finance lease liabilities — ROU assets obtained in exchange for operating lease liabilities 5 Maturities of lease liabilities are as follows: As of June 30, 2019 Operating Leases Finance Leases (In $ millions) 2019 19 22 2020 34 41 2021 26 40 2022 23 32 2023 20 23 Later years 150 88 Sublease income — — Total lease payments 272 246 Less amounts representing interest (49 ) (90 ) Total lease obligations 223 156 As of June 30, 2019 , there were no additional operating or financing lease commitments that have not yet commenced. Disclosures related to periods prior to adoption of ASU 2016-02 Operating lease rent expense was approximately $96 million for the year ended December 31, 2018 . Future minimum lease payments under non-cancelable rental and lease agreements which had initial or remaining terms in excess of one year are as follows: As of December 31, 2018 Operating Leases Capital Leases (In $ millions) 2019 43 42 2020 34 42 2021 25 40 2022 23 32 2023 21 23 Later years 130 88 Sublease income — — Minimum lease commitments 276 267 Less amounts representing interest (100 ) Present value of net minimum lease obligations 167 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Derivatives Designated As Hedges Net Investment Hedges The total notional amount of foreign currency denominated debt and cross-currency swaps designated as net investment hedges are as follows: As of As of (In € millions) Total 1,378 1,550 Cash Flow Hedges The total notional amount of the forward-starting interest rate swap designated as a cash flow hedge is as follows: As of As of (In $ millions) Total 400 400 Derivatives Not Designated As Hedges Foreign Currency Forwards and Swaps Gross notional values of the foreign currency forwards and swaps not designated as hedges are as follows: As of As of (In $ millions) Total 711 1,071 Information regarding changes in the fair value of the Company's derivative and non-derivative instruments is as follows: Gain (Loss) Recognized in Other Comprehensive Income (Loss) Gain (Loss) Recognized in Earnings (Loss) Three Months Ended June 30, Statement of Operations Classification 2019 2018 2019 2018 (In $ millions) Designated as Cash Flow Hedges Commodity swaps (2 ) 6 2 1 Cost of sales Interest rate swaps (15 ) — — — Interest expense Foreign currency forwards — 1 — — Cost of sales Total (17 ) 7 2 1 Designated as Net Investment Hedges Foreign currency denominated debt ( Note 10 ) (13 ) 70 — — N/A Cross-currency swaps ( Note 10 ) (6 ) — — — N/A Total (19 ) 70 — — Not Designated as Hedges Foreign currency forwards and swaps — — 3 21 Foreign exchange gain (loss), net; Other income (expense), net Total — — 3 21 Gain (Loss) Recognized in Other Comprehensive Income (Loss) Gain (Loss) Recognized in Earnings (Loss) Six Months Ended June 30, Statement of Operations Classification 2019 2018 2019 2018 (In $ millions) Designated as Cash Flow Hedges Commodity swaps 8 4 4 1 Cost of sales Interest rate swaps (26 ) — — — Interest expense Foreign currency forwards — 1 — — Cost of sales Total (18 ) 5 4 1 Designated as Net Investment Hedges Foreign currency denominated debt ( Note 10 ) 26 35 — — N/A Cross-currency swaps ( Note 10 ) (6 ) — — — N/A Total 20 35 — — Not Designated as Hedges Foreign currency forwards and swaps — — — 17 Foreign exchange gain (loss), net; Other income (expense), net Total — — — 17 See Note 18 for additional information regarding the fair value of the Company's derivative instruments. Certain of the Company's commodity swaps, interest rate swaps, cross-currency swaps and foreign currency forwards and swaps permit the Company to net settle all contracts with the counterparty through a single payment in an agreed upon currency in the event of default or early termination of the contract, similar to a master netting arrangement. Information regarding the gross amounts of the Company's derivative instruments and the amounts offset in the unaudited consolidated balance sheets is as follows: As of As of (In $ millions) Derivative Assets Gross amount recognized 11 11 Gross amount offset in the consolidated balance sheets 3 2 Net amount presented in the consolidated balance sheets 8 9 Gross amount not offset in the consolidated balance sheets 1 3 Net amount 7 6 As of As of (In $ millions) Derivative Liabilities Gross amount recognized 48 20 Gross amount offset in the consolidated balance sheets 3 2 Net amount presented in the consolidated balance sheets 45 18 Gross amount not offset in the consolidated balance sheets 1 3 Net amount 44 15 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company's financial assets and liabilities are measured at fair value on a recurring basis as follows: Derivatives. Derivative financial instruments include interest rate swaps, commodity swaps, cross-currency swaps and foreign currency forwards and swaps and are valued in the market using discounted cash flow techniques. These techniques incorporate Level 1 and Level 2 fair value measurement inputs such as interest rates and foreign currency exchange rates. These market inputs are utilized in the discounted cash flow calculation considering the instrument's term, notional amount, discount rate and credit risk. Significant inputs to the derivative valuation for interest rate swaps, commodity swaps, cross-currency swaps and foreign currency forwards and swaps are observable in the active markets and are classified as Level 2 in the fair value measurement hierarchy. Fair Value Measurement Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Total Balance Sheet Classification (In $ millions) As of June 30, 2019 Derivatives Designated as Cash Flow Hedges Commodity swaps — 5 5 Current Other assets Commodity swaps — 1 1 Noncurrent Other assets Derivatives Not Designated as Hedges Foreign currency forwards and swaps — 2 2 Current Other assets Total assets — 8 8 Derivatives Designated as Cash Flow Hedges Interest rate swaps — (36 ) (36 ) Noncurrent Other liabilities Derivatives Designated as Net Investment Hedges Cross-currency swaps — (1 ) (1 ) Current Other liabilities Cross-currency swaps — (6 ) (6 ) Noncurrent Other liabilities Derivatives Not Designated as Hedges Foreign currency forwards and swaps — (2 ) (2 ) Current Other liabilities Total liabilities — (45 ) (45 ) As of December 31, 2018 Derivatives Designated as Cash Flow Hedges Commodity swaps — 1 1 Current Other assets Derivatives Not Designated as Hedges Foreign currency forwards and swaps — 8 8 Current Other assets Total assets — 9 9 Derivatives Designated as Cash Flow Hedges Commodity swaps — (1 ) (1 ) Noncurrent Other liabilities Interest rate swaps — (10 ) (10 ) Noncurrent Other liabilities Derivatives Not Designated as Hedges Foreign currency forwards and swaps — (7 ) (7 ) Current Other liabilities Total liabilities — (18 ) (18 ) Carrying values and fair values of financial instruments that are not carried at fair value are as follows: Fair Value Measurement Carrying Amount Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total (In $ millions) As of June 30, 2019 Equity investments without readily determinable fair values 170 — — — Insurance contracts in nonqualified trusts 35 35 — 35 Long-term debt, including current installments of long-term debt 3,490 3,493 156 3,649 As of December 31, 2018 Equity investments without readily determinable fair values 164 — — — Insurance contracts in nonqualified trusts 37 37 — 37 Long-term debt, including current installments of long-term debt 3,355 3,204 167 3,371 In general, the equity investments included in the table above are not publicly traded and their fair values are not readily determinable. The Company believes the carrying values approximate fair value. Insurance contracts in nonqualified trusts consist of long-term fixed income securities, which are valued using independent vendor pricing models with observable inputs in the active market and therefore represent a Level 2 fair value measurement. The fair value of long-term debt is based on valuations from third-party banks and market quotations and is classified as Level 2 in the fair value measurement hierarchy. The fair value of obligations under finance leases, which are included in long-term debt, is based on lease payments and discount rates, which are not observable in the market and therefore represents a Level 3 fair value measurement. As of June 30, 2019 , and December 31, 2018 , the fair values of cash and cash equivalents, receivables, trade payables, short-term borrowings and the current installments of long-term debt approximate carrying values due to the short-term nature of these instruments. These items have been excluded from the table with the exception of the current installments of long-term debt. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Guarantees The Company has agreed to guarantee or indemnify third parties for environmental and other liabilities pursuant to a variety of agreements, including asset and business divestiture agreements, leases, settlement agreements and various agreements with affiliated companies. Although many of these obligations contain monetary and/or time limitations, others do not provide such limitations. The Company has accrued for all probable and reasonably estimable losses associated with all known matters or claims. These known obligations include the following: • Demerger Obligations In connection with the Hoechst demerger, the Company agreed to indemnify Hoechst, and its legal successors, for various liabilities under the demerger agreement, including for environmental liabilities associated with contamination arising either from environmental damage in general ("Category A") or under 19 divestiture agreements entered into by Hoechst prior to the demerger ("Category B") ( Note 12 ). The Company's obligation to indemnify Hoechst, and its legal successors, is capped under Category B at €250 million . If and to the extent the environmental damage should exceed €750 million in aggregate, the Company's obligation to indemnify Hoechst and its legal successors applies, but is then limited to 33.33% of the remediation cost without further limitations. Cumulative payments under the divestiture agreements as of June 30, 2019 , are $90 million . Though the Company is significantly under its obligation cap under Category B, most of the divestiture agreements have become time barred and/or any notified environmental damage claims have been partially settled. The Company has also undertaken in the demerger agreement to indemnify Hoechst and its legal successors for (i) 33.33% of any and all Category A liabilities that result from Hoechst being held as the responsible party pursuant to public law or current or future environmental law or by third parties pursuant to private or public law related to contamination and (ii) liabilities that Hoechst is required to discharge, including tax liabilities, which are associated with businesses that were included in the demerger but were not demerged due to legal restrictions on the transfers of such items. These indemnities do not provide for any monetary or time limitations. The Company has not been requested by Hoechst to make any payments in connection with this indemnification. Accordingly, the Company has not made any payments to Hoechst and its legal successors. Based on the Company's evaluation of currently available information, including the lack of requests for indemnification, the Company cannot estimate the remaining demerger obligations, if any, in excess of amounts accrued. • Divestiture Obligations The Company and its predecessor companies agreed to indemnify third-party purchasers of former businesses and assets for various pre-closing conditions, as well as for breaches of representations, warranties and covenants. Such liabilities also include environmental liability, product liability, antitrust and other liabilities. These indemnifications and guarantees represent standard contractual terms associated with typical divestiture agreements and, other than environmental liabilities, the Company does not believe that they expose the Company to significant risk ( Note 12 ). The Company has divested numerous businesses, investments and facilities through agreements containing indemnifications or guarantees to the purchasers. Many of the obligations contain monetary and/or time limitations, which extend through 2037 . The aggregate amount of outstanding indemnifications and guarantees provided for under these agreements is $116 million as of June 30, 2019 . Other agreements do not provide for any monetary or time limitations. Based on the Company's evaluation of currently available information, including the number of requests for indemnification or other payment received by the Company, the Company cannot estimate the remaining divestiture obligations, if any, in excess of amounts accrued. Purchase Obligations In the normal course of business, the Company enters into various purchase commitments for goods and services. The Company maintains a number of "take-or-pay" contracts for purchases of raw materials, utilities and other services. Certain of the contracts contain a contract termination buy-out provision that allows for the Company to exit the contracts for amounts less than the remaining take-or-pay obligations. Additionally, the Company has other outstanding commitments representing maintenance and service agreements, energy and utility agreements, consulting contracts and software agreements. As of June 30, 2019 , the Company had unconditional purchase obligations of $1.2 billion , which extend through 2036. Contingencies The Company is involved in legal and regulatory proceedings, lawsuits, claims and investigations incidental to the normal conduct of business, relating to such matters as product liability, land disputes, insurance coverage disputes, contracts, employment, antitrust or competition compliance, intellectual property, personal injury and other actions in tort, workers' compensation, chemical exposure, asbestos exposure, taxes, trade compliance, acquisitions and divestitures, claims of legacy stockholders, past waste disposal practices and release of chemicals into the environment. The Company is actively defending those matters where the Company is named as a defendant and, based on the current facts, does not believe the outcomes from these matters would be material to the Company's results of operations, cash flows or financial position. European Commission Investigation In May 2017, the Company learned that the European Commission opened a competition law investigation involving certain subsidiaries of the Company with respect to certain ethylene purchases. The Company is cooperating with the European Commission. Because the investigation is on-going, and the many uncertainties and variables involved, the Company is unable at this time to determine the outcome of this investigation and whether, and in what amount, any potential fines would be assessed. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | _____________________________ (1) Includes intersegment sales primarily related to the Acetyl Chain. (2) Includes a decrease in accrued capital expenditures of $16 million and $20 million for the six months ended June 30, 2019 and 2018 , respectively. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue | Revenue Recognition The Company has certain contracts that represent take-or-pay revenue arrangements in which the Company's performance obligations extend over multiple years. As of June 30, 2019 , the Company had $712 million of remaining performance obligations related to take-or-pay contracts. The Company expects to recognize approximately $154 million of its remaining performance obligations as Net sales in 2019, $203 million in 2020, $151 million in 2021 and the balance thereafter. Contract Balances Contract liabilities primarily relate to advances or deposits received from the Company's customers before revenue is recognized. These amounts are recorded as deferred revenue and are included in Noncurrent Other liabilities in the unaudited consolidated balance sheets ( Note 9 ). The Company does not have any material contract assets as of June 30, 2019 . Disaggregated Revenue In general, the Company's business segmentation is aligned according to the nature and economic characteristics of its products and customer relationships and provides meaningful disaggregation of each business segment's results of operations. The Company manages its Engineered Materials business segment through its project management pipeline, which is comprised of a broad range of projects which are solutions-based and are tailored to each customers' unique needs. Projects are identified and selected based on success rate and may involve a number of different polymers per project for use in multiple end-use applications. Therefore, the Company is agnostic toward products and end-use markets for the Engineered Materials business segment. Within the Acetate Tow business segment, the Company's primary product is acetate tow, which is managed through contracts with a few major tobacco companies and accounts for a significant amount of filters used in cigarette production worldwide. The Company manages its Acetyl Chain business segment by leveraging its ability to sell chemicals externally to end-use markets or downstream to its emulsion polymers business. Decisions to sell externally and geographically or downstream and along the Acetyl Chain are based on market demand, trade flows and maximizing the value of its chemicals. Therefore, the Company's strategic focus is on executing within this integrated chain model and less on driving product-specific revenue. Further disaggregation of Net sales by business segment and geographic destination is as follows: Three Months Ended Six Months Ended 2019 2018 2019 2018 (In $ millions) Engineered Materials North America 180 191 376 370 Europe and Africa 269 331 571 668 Asia-Pacific 126 126 274 258 South America 18 16 35 33 Total 593 664 1,256 1,329 Acetate Tow North America 33 33 67 68 Europe and Africa 67 48 130 118 Asia-Pacific 56 68 116 119 South America 8 13 17 25 Total 164 162 330 330 Acetyl Chain North America 278 285 564 575 Europe and Africa 282 339 576 656 Asia-Pacific 252 362 508 740 South America 23 32 45 65 Total (1) 835 1,018 1,693 2,036 ______________________________ (1) Excludes intersegment sales of $30 million and $31 million for the three months ended June 30, 2019 and 2018 , respectively. Excludes intersegment sales of $61 million and $64 million for the six months ended June 30, 2019 and 2018 , respectively. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Three Months Ended Six Months Ended 2019 2018 2019 2018 (In $ millions, except share data) Amounts attributable to Celanese Corporation Earnings (loss) from continuing operations 210 344 548 709 Earnings (loss) from discontinued operations (1 ) — (2 ) (2 ) Net earnings (loss) 209 344 546 707 Weighted average shares - basic 125,289,967 135,589,717 126,409,926 135,752,179 Incremental shares attributable to equity awards 557,927 719,441 701,120 747,569 Weighted average shares - diluted 125,847,894 136,309,158 127,111,046 136,499,748 During the three and six months ended June 30, 2019 and 2018 , there were no anti-dilutive equity awards excluded from the computation of diluted net earnings per share. |
Consolidating Guarantor Financi
Consolidating Guarantor Financial Information | 6 Months Ended |
Jun. 30, 2019 | |
Consolidating Guarantor Financial Information [Abstract] | |
Consolidating Guarantor Financial Information | Consolidating Guarantor Financial Information The Senior Notes were issued by Celanese US ("Issuer") and are guaranteed by Celanese Corporation ("Parent Guarantor") and the Subsidiary Guarantors ( Note 10 ). The Issuer and Subsidiary Guarantors are 100% owned subsidiaries of the Parent Guarantor. The Parent Guarantor and Subsidiary Guarantors have guaranteed the Notes fully and unconditionally and jointly and severally. For cash management purposes, the Company transfers cash between the Parent Guarantor, Issuer, Subsidiary Guarantors and non-guarantors through intercompany financing arrangements, contributions or declaration of dividends between the respective parent and its subsidiaries. The transfer of cash under these activities facilitates the ability of the recipient to make specified third-party payments for principal and interest on the Company's outstanding debt, Common Stock dividends and Common Stock repurchases. The unaudited interim consolidating statements of cash flows for the six months ended June 30, 2019 and 2018 present such intercompany financing activities, contributions and dividends consistent with how such activity would be presented in a stand-alone statement of cash flows. The Company has not presented separate financial information and other disclosures for each of its Subsidiary Guarantors because it believes such financial information and other disclosures would not provide investors with any additional information that would be material in evaluating the sufficiency of the guarantees. The unaudited interim consolidating financial statements for the Parent Guarantor, the Issuer, the Subsidiary Guarantors and the non-guarantors are as follows: CELANESE CORPORATION AND SUBSIDIARIES UNAUDITED INTERIM CONSOLIDATING STATEMENT OF OPERATIONS Three Months Ended June 30, 2019 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net sales — — 586 1,298 (292 ) 1,592 Cost of sales — — (443 ) (1,020 ) 294 (1,169 ) Gross profit — — 143 278 2 423 Selling, general and administrative expenses — — (39 ) (79 ) — (118 ) Amortization of intangible assets — — (2 ) (4 ) — (6 ) Research and development expenses — — (7 ) (10 ) — (17 ) Other (charges) gains, net — — (5 ) (93 ) — (98 ) Foreign exchange gain (loss), net — — — 1 — 1 Gain (loss) on disposition of businesses and assets, net — — (2 ) 3 — 1 Operating profit (loss) — — 88 96 2 186 Equity in net earnings (loss) of affiliates 209 210 122 34 (536 ) 39 Non-operating pension and other postretirement employee benefit (expense) income — — 16 1 — 17 Interest expense — (9 ) (35 ) (13 ) 28 (29 ) Refinancing expense — (4 ) — — — (4 ) Interest income — 18 11 1 (28 ) 2 Dividend income - equity investments — — — 30 — 30 Other income (expense), net — (4 ) — 2 — (2 ) Earnings (loss) from continuing operations before tax 209 211 202 151 (534 ) 239 Income tax (provision) benefit — (2 ) (23 ) (3 ) — (28 ) Earnings (loss) from continuing operations 209 209 179 148 (534 ) 211 Earnings (loss) from operation of discontinued operations — — (2 ) — — (2 ) Income tax (provision) benefit from discontinued operations — — 1 — — 1 Earnings (loss) from discontinued operations — — (1 ) — — (1 ) Net earnings (loss) 209 209 178 148 (534 ) 210 Net (earnings) loss attributable to noncontrolling interests — — — (1 ) — (1 ) Net earnings (loss) attributable to Celanese Corporation 209 209 178 147 (534 ) 209 CELANESE CORPORATION AND SUBSIDIARIES UNAUDITED INTERIM CONSOLIDATING STATEMENT OF OPERATIONS Three Months Ended June 30, 2018 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net sales — — 586 1,566 (308 ) 1,844 Cost of sales — — (457 ) (1,171 ) 305 (1,323 ) Gross profit — — 129 395 (3 ) 521 Selling, general and administrative expenses — — (51 ) (85 ) — (136 ) Amortization of intangible assets — — (1 ) (6 ) — (7 ) Research and development expenses — — (7 ) (11 ) — (18 ) Other (charges) gains, net — — — (3 ) — (3 ) Foreign exchange gain (loss), net — — — 3 — 3 Gain (loss) on disposition of businesses and assets, net — — (3 ) 1 — (2 ) Operating profit (loss) — — 67 294 (3 ) 358 Equity in net earnings (loss) of affiliates 344 341 312 53 (994 ) 56 Non-operating pension and other postretirement employee benefit (expense) income — — 24 2 — 26 Interest expense — (5 ) (31 ) (8 ) 12 (32 ) Interest income — 10 2 2 (14 ) — Dividend income - equity investments — — — 32 2 34 Other income (expense), net — (1 ) — 1 — — Earnings (loss) from continuing operations before tax 344 345 374 376 (997 ) 442 Income tax (provision) benefit — (1 ) (69 ) (28 ) 1 (97 ) Earnings (loss) from continuing operations 344 344 305 348 (996 ) 345 Earnings (loss) from operation of discontinued operations — — (1 ) 1 — — Income tax (provision) benefit from discontinued operations — — — — — — Earnings (loss) from discontinued operations — — (1 ) 1 — — Net earnings (loss) 344 344 304 349 (996 ) 345 Net (earnings) loss attributable to noncontrolling interests — — — (1 ) — (1 ) Net earnings (loss) attributable to Celanese Corporation 344 344 304 348 (996 ) 344 CELANESE CORPORATION AND SUBSIDIARIES UNAUDITED INTERIM CONSOLIDATING STATEMENT OF OPERATIONS Six Months Ended June 30, 2019 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net sales — — 1,210 2,671 (602 ) 3,279 Cost of sales — — (901 ) (2,097 ) 595 (2,403 ) Gross profit — — 309 574 (7 ) 876 Selling, general and administrative expenses — — (79 ) (159 ) — (238 ) Amortization of intangible assets — — (4 ) (8 ) — (12 ) Research and development expenses — — (13 ) (20 ) — (33 ) Other (charges) gains, net — — (5 ) (89 ) — (94 ) Foreign exchange gain (loss), net — — — 6 — 6 Gain (loss) on disposition of businesses and assets, net — — (4 ) 5 — 1 Operating profit (loss) — — 204 309 (7 ) 506 Equity in net earnings (loss) of affiliates 546 547 339 77 (1,420 ) 89 Non-operating pension and other postretirement employee benefit (expense) income — — 31 3 — 34 Interest expense — (19 ) (66 ) (20 ) 45 (60 ) Refinancing expense — (4 ) — — — (4 ) Interest income — 31 13 4 (45 ) 3 Dividend income - equity investments — — — 62 — 62 Other income (expense), net — (3 ) — (3 ) — (6 ) Earnings (loss) from continuing operations before tax 546 552 521 432 (1,427 ) 624 Income tax (provision) benefit — (6 ) (30 ) (39 ) 1 (74 ) Earnings (loss) from continuing operations 546 546 491 393 (1,426 ) 550 Earnings (loss) from operation of discontinued operations — — (3 ) — — (3 ) Income tax (provision) benefit from discontinued operations — — 1 — — 1 Earnings (loss) from discontinued operations — — (2 ) — — (2 ) Net earnings (loss) 546 546 489 393 (1,426 ) 548 Net (earnings) loss attributable to noncontrolling interests — — — (2 ) — (2 ) Net earnings (loss) attributable to Celanese Corporation 546 546 489 391 (1,426 ) 546 CELANESE CORPORATION AND SUBSIDIARIES UNAUDITED INTERIM CONSOLIDATING STATEMENT OF OPERATIONS Six Months Ended June 30, 2018 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net sales — — 1,168 3,138 (611 ) 3,695 Cost of sales — — (905 ) (2,365 ) 611 (2,659 ) Gross profit — — 263 773 — 1,036 Selling, general and administrative expenses — — (110 ) (173 ) — (283 ) Amortization of intangible assets — — (2 ) (11 ) — (13 ) Research and development expenses — — (15 ) (21 ) — (36 ) Other (charges) gains, net — — — (3 ) — (3 ) Foreign exchange gain (loss), net — — — 2 — 2 Gain (loss) on disposition of businesses and assets, net — — (5 ) 3 — (2 ) Operating profit (loss) — — 131 570 — 701 Equity in net earnings (loss) of affiliates 707 701 586 106 (1,986 ) 114 Non-operating pension and other postretirement employee benefit (expense) income — — 47 5 — 52 Interest expense — (10 ) (60 ) (17 ) 22 (65 ) Interest income — 18 4 4 (24 ) 2 Dividend income - equity investments — — — 64 2 66 Other income (expense), net — — — 4 — 4 Earnings (loss) from continuing operations before tax 707 709 708 736 (1,986 ) 874 Income tax (provision) benefit — (2 ) (105 ) (55 ) — (162 ) Earnings (loss) from continuing operations 707 707 603 681 (1,986 ) 712 Earnings (loss) from operation of discontinued operations — — (1 ) (1 ) — (2 ) Income tax (provision) benefit from discontinued operations — — — — — — Earnings (loss) from discontinued operations — — (1 ) (1 ) — (2 ) Net earnings (loss) 707 707 602 680 (1,986 ) 710 Net (earnings) loss attributable to noncontrolling interests — — — (3 ) — (3 ) Net earnings (loss) attributable to Celanese Corporation 707 707 602 677 (1,986 ) 707 CELANESE CORPORATION AND SUBSIDIARIES UNAUDITED INTERIM CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended June 30, 2019 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net earnings (loss) 209 209 178 148 (534 ) 210 Other comprehensive income (loss), net of tax Foreign currency translation gain (loss) (11 ) (11 ) 2 4 5 (11 ) Gain (loss) on cash flow hedges (13 ) (13 ) (3 ) (3 ) 19 (13 ) Total other comprehensive income (loss), net of tax (24 ) (24 ) (1 ) 1 24 (24 ) Total comprehensive income (loss), net of tax 185 185 177 149 (510 ) 186 Comprehensive (income) loss attributable to noncontrolling interests — — — (1 ) — (1 ) Comprehensive income (loss) attributable to Celanese Corporation 185 185 177 148 (510 ) 185 Three Months Ended June 30, 2018 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net earnings (loss) 344 344 304 349 (996 ) 345 Other comprehensive income (loss), net of tax Unrealized gain (loss) on marketable securities — — 5 13 (18 ) — Foreign currency translation gain (loss) (66 ) (66 ) (109 ) (132 ) 307 (66 ) Gain (loss) on cash flow hedges 6 6 5 6 (17 ) 6 Total other comprehensive income (loss), net of tax (60 ) (60 ) (99 ) (113 ) 272 (60 ) Total comprehensive income (loss), net of tax 284 284 205 236 (724 ) 285 Comprehensive (income) loss attributable to noncontrolling interests — — — (1 ) — (1 ) Comprehensive income (loss) attributable to Celanese Corporation 284 284 205 235 (724 ) 284 CELANESE CORPORATION AND SUBSIDIARIES UNAUDITED INTERIM CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Six Months Ended June 30, 2019 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net earnings (loss) 546 546 489 393 (1,426 ) 548 Other comprehensive income (loss), net of tax Foreign currency translation gain (loss) (4 ) (4 ) (16 ) (20 ) 40 (4 ) Gain (loss) on cash flow hedges (16 ) (16 ) 3 5 8 (16 ) Total other comprehensive income (loss), net of tax (20 ) (20 ) (13 ) (15 ) 48 (20 ) Total comprehensive income (loss), net of tax 526 526 476 378 (1,378 ) 528 Comprehensive (income) loss attributable to noncontrolling interests — — — (2 ) — (2 ) Comprehensive income (loss) attributable to Celanese Corporation 526 526 476 376 (1,378 ) 526 Six Months Ended June 30, 2018 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net earnings (loss) 707 707 602 680 (1,986 ) 710 Other comprehensive income (loss), net of tax Unrealized gain (loss) on marketable securities — — 5 13 (18 ) — Foreign currency translation gain (loss) (17 ) (17 ) (46 ) (58 ) 121 (17 ) Gain (loss) on cash flow hedges 5 5 4 5 (14 ) 5 Pension and postretirement benefits gain (loss) 1 1 1 1 (3 ) 1 Total other comprehensive income (loss), net of tax (11 ) (11 ) (36 ) (39 ) 86 (11 ) Total comprehensive income (loss), net of tax 696 696 566 641 (1,900 ) 699 Comprehensive (income) loss attributable to noncontrolling interests — — — (3 ) — (3 ) Comprehensive income (loss) attributable to Celanese Corporation 696 696 566 638 (1,900 ) 696 CELANESE CORPORATION AND SUBSIDIARIES UNAUDITED CONSOLIDATING BALANCE SHEET As of June 30, 2019 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) ASSETS Current Assets Cash and cash equivalents — — 51 440 — 491 Trade receivables - third party and affiliates — — 100 991 (120 ) 971 Non-trade receivables, net 40 1,025 1,631 611 (2,975 ) 332 Inventories, net — — 327 739 (55 ) 1,011 Marketable securities, at fair value — — 27 — — 27 Other assets — 28 23 39 (46 ) 44 Total current assets 40 1,053 2,159 2,820 (3,196 ) 2,876 Investments in affiliates 3,760 4,937 4,126 832 (12,696 ) 959 Property, plant and equipment, net — — 1,349 2,293 — 3,642 Operating lease right-of-use assets — — 55 154 — 209 Deferred income taxes — — — 92 (2 ) 90 Other assets — 1,658 176 452 (1,966 ) 320 Goodwill — — 399 684 — 1,083 Intangible assets, net — — 129 198 — 327 Total assets 3,800 7,648 8,393 7,525 (17,860 ) 9,506 LIABILITIES AND EQUITY Current Liabilities Short-term borrowings and current installments of long-term debt - third party and affiliates 910 197 819 752 (2,359 ) 319 Trade payables - third party and affiliates 25 1 270 588 (120 ) 764 Other liabilities — 41 151 268 (158 ) 302 Income taxes payable — — 500 28 (505 ) 23 Total current liabilities 935 239 1,740 1,636 (3,142 ) 1,408 Noncurrent Liabilities Long-term debt — 3,590 1,678 114 (1,938 ) 3,444 Deferred income taxes — 15 85 167 (2 ) 265 Uncertain tax positions 1 2 5 163 — 171 Benefit obligations — — 242 303 — 545 Operating lease liabilities — — 44 148 — 192 Other liabilities — 42 98 125 (38 ) 227 Total noncurrent liabilities 1 3,649 2,152 1,020 (1,978 ) 4,844 Total Celanese Corporation stockholders' equity 2,864 3,760 4,501 4,479 (12,740 ) 2,864 Noncontrolling interests — — — 390 — 390 Total equity 2,864 3,760 4,501 4,869 (12,740 ) 3,254 Total liabilities and equity 3,800 7,648 8,393 7,525 (17,860 ) 9,506 CELANESE CORPORATION AND SUBSIDIARIES UNAUDITED CONSOLIDATING BALANCE SHEET As of December 31, 2018 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) ASSETS Current Assets Cash and cash equivalents — — 30 409 — 439 Trade receivables - third party and affiliates — — 96 1,040 (119 ) 1,017 Non-trade receivables, net 40 551 797 697 (1,784 ) 301 Inventories, net — — 329 765 (48 ) 1,046 Marketable securities, at fair value — — 31 — — 31 Other assets — 24 10 37 (31 ) 40 Total current assets 40 575 1,293 2,948 (1,982 ) 2,874 Investments in affiliates 3,503 4,820 4,678 855 (12,877 ) 979 Property, plant and equipment, net — — 1,289 2,430 — 3,719 Deferred income taxes — — — 86 (2 ) 84 Other assets — 1,658 142 461 (1,971 ) 290 Goodwill — — 399 658 — 1,057 Intangible assets, net — — 132 178 — 310 Total assets 3,543 7,053 7,933 7,616 (16,832 ) 9,313 LIABILITIES AND EQUITY Current Liabilities Short-term borrowings and current installments of long-term debt - third party and affiliates 544 333 465 258 (1,039 ) 561 Trade payables - third party and affiliates 13 1 342 583 (120 ) 819 Other liabilities 1 87 267 258 (270 ) 343 Income taxes payable — — 475 88 (507 ) 56 Total current liabilities 558 421 1,549 1,187 (1,936 ) 1,779 Noncurrent Liabilities Long-term debt — 3,104 1,679 127 (1,940 ) 2,970 Deferred income taxes — 15 85 157 (2 ) 255 Uncertain tax positions — — 6 152 — 158 Benefit obligations — — 250 314 — 564 Other liabilities 1 10 99 138 (40 ) 208 Total noncurrent liabilities 1 3,129 2,119 888 (1,982 ) 4,155 Total Celanese Corporation stockholders' equity 2,984 3,503 4,265 5,146 (12,914 ) 2,984 Noncontrolling interests — — — 395 — 395 Total equity 2,984 3,503 4,265 5,541 (12,914 ) 3,379 Total liabilities and equity 3,543 7,053 7,933 7,616 (16,832 ) 9,313 CELANESE CORPORATION AND SUBSIDIARIES UNAUDITED INTERIM CONSOLIDATING STATEMENT OF CASH FLOWS Six Months Ended June 30, 2019 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net cash provided by (used in) operating activities 636 (31 ) 1,052 635 (1,561 ) 731 Investing Activities Capital expenditures on property, plant and equipment — — (83 ) (61 ) — (144 ) Acquisitions, net of cash acquired — — (31 ) (60 ) — (91 ) Return of capital from subsidiary — — 7 — (7 ) — Intercompany loan receipts (disbursements) — — (653 ) — 653 — Other, net — — 2 (10 ) — (8 ) Net cash provided by (used in) investing activities — — (758 ) (131 ) 646 (243 ) Financing Activities Net change in short-term borrowings with maturities of 3 months or less — 149 3 (4 ) (43 ) 105 Proceeds from short-term borrowings — — — 610 (610 ) — Repayments of short-term borrowings — — — (12 ) — (12 ) Proceeds from long-term debt — 499 — — — 499 Repayments of long-term debt — (335 ) (1 ) (12 ) — (348 ) Purchases of treasury stock, including related fees (488 ) — — — — (488 ) Dividends to parent — (272 ) (251 ) (1,038 ) 1,561 — Common stock dividends (148 ) — — — — (148 ) Return of capital to parent — — — (7 ) 7 — (Distributions to) contributions from noncontrolling interests — — — (7 ) — (7 ) Other, net — (10 ) (24 ) (4 ) — (38 ) Net cash provided by (used in) financing activities (636 ) 31 (273 ) (474 ) 915 (437 ) Exchange rate effects on cash and cash equivalents — — — 1 — 1 Net increase (decrease) in cash and cash equivalents — — 21 31 — 52 Cash and cash equivalents as of beginning of period — — 30 409 — 439 Cash and cash equivalents as of end of period — — 51 440 — 491 CELANESE CORPORATION AND SUBSIDIARIES UNAUDITED INTERIM CONSOLIDATING STATEMENT OF CASH FLOWS Six Months Ended June 30, 2018 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net cash provided by (used in) operating activities 238 432 115 630 (687 ) 728 Investing Activities Capital expenditures on property, plant and equipment — — (109 ) (56 ) — (165 ) Acquisitions, net of cash acquired — — (144 ) — — (144 ) Proceeds from sale of businesses and assets, net — — — 9 — 9 Return of capital from subsidiary — — 218 — (218 ) — Contributions to subsidiary — — (16 ) — 16 — Intercompany loan receipts (disbursements) — (272 ) (10 ) — 282 — Other, net — — (7 ) (24 ) — (31 ) Net cash provided by (used in) investing activities — (272 ) (68 ) (71 ) 80 (331 ) Financing Activities Net change in short-term borrowings with maturities of 3 months or less — 90 11 (51 ) (10 ) 40 Proceeds from short-term borrowings — — — 36 — 36 Repayments of short-term borrowings — — — (39 ) — (39 ) Proceeds from long-term debt — — 272 — (272 ) — Repayments of long-term debt — (12 ) (13 ) (18 ) — (43 ) Purchases of treasury stock, including related fees (100 ) — — — — (100 ) Dividends to parent — (238 ) (449 ) — 687 — Contributions from parent — — — 16 (16 ) — Common stock dividends (136 ) — — — — (136 ) Return of capital to parent — — — (218 ) 218 — (Distributions to) contributions from noncontrolling interests — — — (8 ) — (8 ) Other, net — — (5 ) (1 ) — (6 ) Net cash provided by (used in) financing activities (236 ) (160 ) (184 ) (283 ) 607 (256 ) Exchange rate effects on cash and cash equivalents — — — (9 ) — (9 ) Net increase (decrease) in cash and cash equivalents 2 — (137 ) 267 — 132 Cash and cash equivalents as of beginning of period — — 230 346 — 576 Cash and cash equivalents as of end of period 2 — 93 613 — 708 |
Description of the Company an_2
Description of the Company and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Estimates and Assumptions | Estimates and Assumptions The preparation of unaudited interim consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the unaudited interim consolidated financial statements and the reported amounts of Net sales, expenses and allocated charges during the reporting period. Significant estimates pertain to impairments of goodwill, intangible assets and other long-lived assets, purchase price allocations, restructuring costs and other (charges) gains, net, income taxes, pension and other postretirement benefits, asset retirement obligations, environmental liabilities and loss contingencies, among others. Actual results could differ from those estimates. |
Leases (Policies)
Leases (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | The Company leases certain real estate, fleet assets, warehouses and equipment. Leases with an initial term of 12 months or less ("short-term leases") are not recorded on the unaudited consolidated balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company determines if an arrangement is a lease at inception. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Company's leases do not provide an implicit rate of return, the Company uses its imputed collateralized rate based on the information available at commencement date in determining the present value of lease payments. Operating lease ROU assets are comprised of the lease liability plus prepaid rents and are reduced by lease incentives or deferred rents. The Company has lease agreements with non-lease components which are not bifurcated. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 30 years. The exercise of a lease renewal option typically occurs at the discretion of both parties. Certain leases also include options to purchase the leased property. For purposes of calculating operating lease liabilities, lease terms are deemed not to include options to extend the lease termination until it is reasonably certain that the Company will exercise that option. Certain of the Company's lease agreements include payments adjusted periodically for inflation based on the consumer price index. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table provides a brief description of recent Accounting Standard Updates ("ASU") issued by the Financial Accounting Standards Board ("FASB"): Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters In August 2018, the FASB issued ASU 2018-14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. The new guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing disclosures that no longer are considered cost beneficial, clarifying the specific requirements of disclosures and adding disclosure requirements identified as relevant. January 1, 2020. Early adoption is permitted. The Company is currently evaluating the impact of adoption on its financial statements and related disclosures. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The new guidance allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. January 1, 2019. The Company adopted the new guidance effective January 1, 2019. The adoption of the new guidance did not have a material impact on the Company. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. Since that date, the FASB has issued additional ASUs clarifying certain aspects of ASU 2016-13. The new guidance requires financial instruments measured at amortized cost basis to be presented at the net amount expected to be collected through application of the current expected credit losses model. The model requires an estimate of the credit losses expected over the life of an exposure or pool of exposures. The income statement will reflect the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. January 1, 2020. Early adoption is permitted. The Company is currently evaluating the impact of adoption on its financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases. Since that date, the FASB has issued additional ASUs clarifying certain aspects of ASU 2016-02. The new guidance supersedes the lease guidance under FASB Accounting Standards Codification ("ASC") Topic 840, Leases, resulting in the creation of FASB ASC Topic 842, Leases. The guidance requires a lessee to recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for both finance and operating leases. Subsequent guidance issued after February 2016 did not change the core principle of ASU 2016-02. January 1, 2019. The Company adopted the new guidance effective January 1, 2019, using the modified retrospective transition method, which did not require the Company to adjust comparative periods. See the Adoption of ASU 2016-02 section below for additional information. |
Acquisitions, Dispositions an_2
Acquisitions, Dispositions and Plant Closures Plant Closures (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Plant Closures [Abstract] | |
Restructuring and Related Costs [Table Text Block] | Three Months Ended June 30, 2019 (In $ millions) Asset impairments (1) 83 Restructuring (1) 1 Accelerated depreciation expense 1 Total 85 ______________________________ (1) Included in Other (charges) gains, net in the consolidated statement of operations ( Note 18 ). |
Ventures and Variable Interes_2
Ventures and Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entity, Primary Beneficiary [Member] | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities | The carrying amount of the assets and liabilities associated with Fairway included in the unaudited consolidated balance sheets are as follows: As of As of (In $ millions) Cash and cash equivalents 29 24 Trade receivables, net - third party and affiliates 10 11 Property, plant and equipment (net of accumulated depreciation - 2019: $151; 2018: $130) 641 659 Intangible assets (net of accumulated amortization - 2019: $4; 2018: $3) 23 23 Other assets 3 5 Total assets (1) 706 722 Trade payables 11 16 Other liabilities (2) 3 4 Total debt 4 5 Deferred income taxes 4 3 Total liabilities 22 28 ______________________________ (1) Assets can only be used to settle the obligations of Fairway. (2) Primarily represents amounts owed by Fairway to the Company for reimbursement of expenditures. |
Variable Interest Entity, Not Primary Beneficiary [Member] | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities | The carrying amount of the assets and liabilities associated with the obligations to nonconsolidated VIEs, as well as the maximum exposure to loss relating to these nonconsolidated VIEs are as follows: As of As of (In $ millions) Property, plant and equipment, net 37 42 Trade payables 28 27 Current installments of long-term debt 15 14 Long-term debt 50 58 Total liabilities 93 99 Maximum exposure to loss 124 134 The difference between the total liabilities associated with obligations to nonconsolidated VIEs and the maximum exposure to loss primarily represents take-or-pay obligations for services included in the Company's unconditional purchase obligations ( Note 19 ). |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | As of As of (In $ millions) Finished goods 688 697 Work-in-process 73 70 Raw materials and supplies 250 279 Total 1,011 1,046 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Engineered Materials Acetate Tow Acetyl Chain Total (In $ millions) As of December 31, 2018 707 148 202 1,057 Acquisitions 29 (1) — — 29 Exchange rate changes (2 ) — (1 ) (3 ) As of June 30, 2019 (2) 734 148 201 1,083 ______________________________ (1) Represents goodwill related to the acquisition of Next Polymers Ltd. (2) There were $0 million of accumulated impairment losses as of June 30, 2019 . |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Finite-lived intangible assets are as follows: Licenses Customer- Related Intangible Assets Developed Technology Covenants Not to Compete and Other Total (In $ millions) Gross Asset Value As of December 31, 2018 42 651 44 56 793 Acquisitions — 25 — — 25 (1) Exchange rate changes — (2 ) — — (2 ) As of June 30, 2019 42 674 44 56 816 Accumulated Amortization As of December 31, 2018 (33 ) (495 ) (32 ) (35 ) (595 ) Amortization (1 ) (8 ) (2 ) (1 ) (12 ) Exchange rate changes — 2 — — 2 As of June 30, 2019 (34 ) (501 ) (34 ) (36 ) (605 ) Net book value 8 173 10 20 211 ______________________________ (1) Represents intangible assets acquired related to Next Polymers Ltd. with a weighted average amortization period of 13 years . |
Schedule of Indefinite-Lived Intangible Assets [Table Text Block] | Indefinite-lived intangible assets are as follows: Trademarks and Trade Names (In $ millions) As of December 31, 2018 112 Acquisitions 4 Accumulated impairment losses — Exchange rate changes — As of June 30, 2019 116 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated amortization expense for the succeeding five fiscal years is as follows: (In $ millions) 2020 22 2021 21 2022 19 2023 17 2024 15 |
Current Other Liabilities (Tabl
Current Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Liabilities, Current [Abstract] | |
Schedule of Current Other Liabilities | As of As of (In $ millions) Asset retirement obligations 7 3 Benefit obligations ( Note 11 ) 30 30 Customer rebates ( Note 21 ) 47 76 Derivatives ( Note 17 ) 3 7 Environmental ( Note 12 ) 16 20 Insurance 4 4 Interest 26 21 Operating leases ( Note 16 ) 31 — Restructuring ( Note 14 ) 15 4 Salaries and benefits 69 119 Sales and use tax/foreign withholding tax payable 17 22 Other 37 37 Total 302 343 |
Noncurrent Other Liabilities (T
Noncurrent Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Liabilities, Noncurrent [Abstract] | |
Schedule of Noncurrent Other Liabilities | As of As of (In $ millions) Asset retirement obligations 14 13 Deferred proceeds 44 44 Deferred revenue ( Note 21 ) 7 7 Derivatives ( Note 17 ) 42 11 Environmental ( Note 12 ) 49 49 Insurance 41 37 Other 30 47 Total 227 208 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Line of Credit Facility [Line Items] | |
Schedule of Short-term Debt | As of As of (In $ millions) Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates Current installments of long-term debt 26 367 Short-term borrowings, including amounts due to affiliates (1) 68 77 Revolving credit facility (2) 148 40 Accounts receivable securitization facility (3) 77 77 Total 319 561 ______________________________ (1) The weighted average interest rate was 2.9% and 3.2% as of June 30, 2019 and December 31, 2018 , respectively. (2) The weighted average interest rate was 1.3% and 6.0% as of June 30, 2019 and December 31, 2018 , respectively. (3) The weighted average interest rate was 3.3% and 3.1% as of June 30, 2019 and December 31, 2018 , respectively. |
Schedule of Long-term Debt | As of As of (In $ millions) Long-Term Debt Senior unsecured notes due 2019, interest rate of 3.250% — 343 Senior unsecured notes due 2021, interest rate of 5.875% 400 400 Senior unsecured notes due 2022, interest rate of 4.625% 500 500 Senior unsecured notes due 2023, interest rate of 1.125% 852 857 Senior unsecured notes due 2024, interest rate of 3.500% 499 — Senior unsecured notes due 2025, interest rate of 1.250% 341 343 Senior unsecured notes due 2027, interest rate of 2.125% 565 568 Pollution control and industrial revenue bonds due at various dates through 2030, interest rates ranging from 4.05% to 5.00% 167 167 Nilit bank loans due at various dates through 2026 (1) 10 10 Obligations under finance leases due at various dates through 2054 156 167 Subtotal 3,490 3,355 Unamortized debt issuance costs (2) (20 ) (18 ) Current installments of long-term debt (26 ) (367 ) Total 3,444 2,970 ______________________________ (1) The weighted average interest rate was 1.3% and 1.3% as of June 30, 2019 and December 31, 2018 , respectively. (2) |
Accounts Receivable Securitization Facility [Member] | |
Line of Credit Facility [Line Items] | |
Schedule of Balances Available for Borrowing | The Company's debt balances and amounts available for borrowing under its securitization facility are as follows: As of (In $ millions) Accounts Receivable Securitization Facility Borrowings outstanding 77 Letters of credit issued 29 Available for borrowing 5 Total borrowing base 111 Maximum borrowing base (1) 120 ______________________________ (1) Outstanding accounts receivable transferred to the SPE was $188 million . |
Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Schedule of Balances Available for Borrowing | The Company's debt balances and amounts available for borrowing under its senior unsecured revolving credit facility are as follows: As of (In $ millions) Revolving Credit Facility Borrowings outstanding (1) 148 Letters of credit issued — Available for borrowing (2) 1,102 ______________________________ (1) The Company borrowed $869 million and repaid $763 million under its senior unsecured revolving credit facility during the six months ended June 30, 2019 . (2) The margin for borrowings under the senior unsecured revolving credit facility was 1.25% |
Benefit Obligations (Tables)
Benefit Obligations (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Costs Recognized | The components of net periodic benefit cost are as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Pension Post-retirement Pension Post-retirement Pension Post-retirement Pension Post-retirement (In $ millions) Service cost 2 — 3 — 4 — 5 — Interest cost 29 1 26 1 58 1 52 1 Expected return on plan assets (47 ) — (53 ) — (93 ) — (105 ) — Special termination benefit — — 1 — — — 1 — Total (16 ) 1 (23 ) 1 (31 ) 1 (47 ) 1 |
Schedule of Company Commitments to Fund Benefit Obligations | Benefit obligation funding is as follows: As of Total Expected 2019 (In $ millions) Cash contributions to defined benefit pension plans 11 22 Benefit payments to nonqualified pension plans 11 21 Benefit payments to other postretirement benefit plans 2 5 Cash contributions to German multiemployer defined benefit pension plans (1) 4 9 ______________________________ (1) The Company makes contributions based on specified percentages of employee contributions. |
Environmental (Tables)
Environmental (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of Environmental Remediation Reserves | The components of environmental remediation liabilities are as follows: As of As of (In $ millions) Demerger obligations ( Note 19 ) 25 26 Divestiture obligations ( Note 19 ) 13 16 Active sites 14 14 US Superfund sites 11 11 Other environmental remediation liabilities 2 2 Total 65 69 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Dividend Increases | The Company's Board of Directors approved increases in the Company's Common Stock cash dividend rates as follows: Increase Quarterly Common Stock Cash Dividend Annual Common Stock Cash Dividend Effective Date (In percentages) (In $ per share) April 2018 17 0.54 2.16 May 2018 April 2019 15 0.62 2.48 May 2019 |
Schedule of Treasury Stock | Six Months Ended Total From 2019 2018 Shares repurchased 4,890,155 888,383 52,602,866 Average purchase price per share $ 102.25 $ 112.56 $ 69.44 Shares repurchased (in $ millions) $ 500 $ 100 $ 3,653 Aggregate Board of Directors repurchase authorizations during the period (in $ millions) (1) $ 1,500 $ — $ 5,366 ______________________________ (1) These authorizations give management discretion in determining the timing and conditions under which shares may be repurchased. This repurchase program began in February 2008 and does not have an expiration date. |
Schedule of Components of Other Comprehensive Income (Loss), Net | Three Months Ended June 30, 2019 2018 Gross Amount Income Tax (Provision) Benefit Net Amount Gross Amount Income Tax (Provision) Benefit Net (In $ millions) Foreign currency translation gain (loss) (12 ) 1 (11 ) (72 ) 6 (66 ) Gain (loss) on cash flow hedges (19 ) 6 (13 ) 6 — 6 Pension and postretirement benefits gain (loss) — — — — — — Total (31 ) 7 (24 ) (66 ) 6 (60 ) Six Months Ended June 30, 2019 2018 Gross Income Net Gross Income Net (In $ millions) Foreign currency translation gain (loss) 1 (5 ) (4 ) (27 ) 10 (17 ) Gain (loss) on cash flow hedges (22 ) 6 (16 ) 4 1 5 Pension and postretirement benefits gain (loss) — — — 1 — 1 Total (21 ) 1 (20 ) (22 ) 11 (11 ) |
Schedule of Adjustments to Accumulated Other Comprehensive Income (Loss), Net | Adjustments to Accumulated other comprehensive income (loss), net, are as follows: Foreign Currency Translation Gain (Loss) Gain (Loss) on Cash Flow Hedges ( Note 17 ) Pension and Postretirement Benefits Gain (Loss) ( Note 11 ) Accumulated Other Comprehensive Income (Loss), Net (In $ millions) As of December 31, 2018 (236 ) (8 ) (3 ) (247 ) Other comprehensive income (loss) before reclassifications 1 (18 ) — (17 ) Amounts reclassified from accumulated other comprehensive income (loss) — (4 ) — (4 ) Income tax (provision) benefit (5 ) 6 — 1 As of June 30, 2019 (240 ) (24 ) (3 ) (267 ) |
Other (Charges) Gains, Net (Tab
Other (Charges) Gains, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The changes in the restructuring liability by business segment are as follows: Engineered Materials Acetate Tow Acetyl Chain Other Total (In $ millions) Employee Termination Benefits As of December 31, 2018 — 2 2 — 4 Additions 8 1 1 5 15 Cash payments (1 ) (2 ) — — (3 ) Other changes — — (1 ) — (1 ) Exchange rate changes — — — — — As of June 30, 2019 7 1 2 5 15 |
Schedule of Other (Charges) Gains, Net | Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In $ millions) Restructuring (15 ) (3 ) (14 ) (3 ) Asset impairments (83 ) — (83 ) — Plant/office closures — — (1 ) — Commercial disputes — — 4 — Total (98 ) (3 ) (94 ) (3 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Tax Rate | Three Months Ended Six Months Ended 2019 2018 2019 2018 (In percentages) Effective income tax rate 12 22 12 19 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease expense are as follows: Three Months Ended June 30, Six Months Ended June 30, Statement of Operations Classification 2019 (In $ millions) Lease Cost Operating lease cost 10 20 Cost of sales / Selling, general and administrative expenses Short-term lease cost 5 10 Cost of sales / Selling, general and administrative expenses Variable lease cost 2 4 Cost of sales / Selling, general and administrative expenses Finance lease cost Amortization of leased assets 4 9 Cost of sales Interest on lease liabilities 5 10 Interest expense Sublease income — — Other income (expense), net Total net lease cost 26 53 |
Assets and liabilities, lessee [Table Text Block] | Supplemental unaudited consolidated balance sheet information related to leases is as follows: As of Balance Sheet Classification (In $ millions) Leases Assets Operating lease assets 209 Operating lease ROU assets Finance lease assets 94 Property, plant and equipment, net Total leased assets 303 Liabilities Current Operating 31 Current Other liabilities Finance 24 Short-term borrowings and current installments of long-term debt Noncurrent Operating 192 Operating lease liabilities Finance 132 Long-term debt Total lease liabilities 379 |
Supplemental lease information [Table Text Block] | As of June 30, 2019 Weighted-Average Remaining Lease Term (years) Operating leases 15.0 Finance leases 7.1 Weighted-Average Discount Rate Operating leases 2.7 % Finance leases 11.7 % |
CashFlowLessee [Table Text Block] | Supplemental unaudited interim consolidated cash flow information related to leases is as follows: Six Months Ended (In $ millions) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 20 Operating cash flows from finance leases 10 Financing cash flows from finance leases 11 ROU assets obtained in exchange for finance lease liabilities — ROU assets obtained in exchange for operating lease liabilities 5 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturities of lease liabilities are as follows: As of June 30, 2019 Operating Leases Finance Leases (In $ millions) 2019 19 22 2020 34 41 2021 26 40 2022 23 32 2023 20 23 Later years 150 88 Sublease income — — Total lease payments 272 246 Less amounts representing interest (49 ) (90 ) Total lease obligations 223 156 |
Finance Lease, Liability, Maturity [Table Text Block] | Maturities of lease liabilities are as follows: As of June 30, 2019 Operating Leases Finance Leases (In $ millions) 2019 19 22 2020 34 41 2021 26 40 2022 23 32 2023 20 23 Later years 150 88 Sublease income — — Total lease payments 272 246 Less amounts representing interest (49 ) (90 ) Total lease obligations 223 156 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum lease payments under non-cancelable rental and lease agreements which had initial or remaining terms in excess of one year are as follows: As of December 31, 2018 Operating Leases Capital Leases (In $ millions) 2019 43 42 2020 34 42 2021 25 40 2022 23 32 2023 21 23 Later years 130 88 Sublease income — — Minimum lease commitments 276 267 Less amounts representing interest (100 ) Present value of net minimum lease obligations 167 |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Future minimum lease payments under non-cancelable rental and lease agreements which had initial or remaining terms in excess of one year are as follows: As of December 31, 2018 Operating Leases Capital Leases (In $ millions) 2019 43 42 2020 34 42 2021 25 40 2022 23 32 2023 21 23 Later years 130 88 Sublease income — — Minimum lease commitments 276 267 Less amounts representing interest (100 ) Present value of net minimum lease obligations 167 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative [Line Items] | |
Schedule of Changes in Fair Value of Derivatives | Information regarding changes in the fair value of the Company's derivative and non-derivative instruments is as follows: Gain (Loss) Recognized in Other Comprehensive Income (Loss) Gain (Loss) Recognized in Earnings (Loss) Three Months Ended June 30, Statement of Operations Classification 2019 2018 2019 2018 (In $ millions) Designated as Cash Flow Hedges Commodity swaps (2 ) 6 2 1 Cost of sales Interest rate swaps (15 ) — — — Interest expense Foreign currency forwards — 1 — — Cost of sales Total (17 ) 7 2 1 Designated as Net Investment Hedges Foreign currency denominated debt ( Note 10 ) (13 ) 70 — — N/A Cross-currency swaps ( Note 10 ) (6 ) — — — N/A Total (19 ) 70 — — Not Designated as Hedges Foreign currency forwards and swaps — — 3 21 Foreign exchange gain (loss), net; Other income (expense), net Total — — 3 21 Gain (Loss) Recognized in Other Comprehensive Income (Loss) Gain (Loss) Recognized in Earnings (Loss) Six Months Ended June 30, Statement of Operations Classification 2019 2018 2019 2018 (In $ millions) Designated as Cash Flow Hedges Commodity swaps 8 4 4 1 Cost of sales Interest rate swaps (26 ) — — — Interest expense Foreign currency forwards — 1 — — Cost of sales Total (18 ) 5 4 1 Designated as Net Investment Hedges Foreign currency denominated debt ( Note 10 ) 26 35 — — N/A Cross-currency swaps ( Note 10 ) (6 ) — — — N/A Total 20 35 — — Not Designated as Hedges Foreign currency forwards and swaps — — — 17 Foreign exchange gain (loss), net; Other income (expense), net Total — — — 17 |
Offsetting Assets | Information regarding the gross amounts of the Company's derivative instruments and the amounts offset in the unaudited consolidated balance sheets is as follows: As of As of (In $ millions) Derivative Assets Gross amount recognized 11 11 Gross amount offset in the consolidated balance sheets 3 2 Net amount presented in the consolidated balance sheets 8 9 Gross amount not offset in the consolidated balance sheets 1 3 Net amount 7 6 |
Offsetting Liabilities | As of As of (In $ millions) Derivative Liabilities Gross amount recognized 48 20 Gross amount offset in the consolidated balance sheets 3 2 Net amount presented in the consolidated balance sheets 45 18 Gross amount not offset in the consolidated balance sheets 1 3 Net amount 44 15 |
Net Investment Hedging [Member] | |
Derivative [Line Items] | |
Schedule of Notional Amounts of Derivative and Nonderivative Instruments | The total notional amount of foreign currency denominated debt and cross-currency swaps designated as net investment hedges are as follows: As of As of (In € millions) Total 1,378 1,550 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Schedule of Notional Amounts of Derivative and Nonderivative Instruments | The total notional amount of the forward-starting interest rate swap designated as a cash flow hedge is as follows: As of As of (In $ millions) Total 400 400 |
Not Designated as Hedging Instrument [Member] | |
Derivative [Line Items] | |
Schedule of Notional Amounts of Derivative and Nonderivative Instruments | Gross notional values of the foreign currency forwards and swaps not designated as hedges are as follows: As of As of (In $ millions) Total 711 1,071 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Fair Value Measurement Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Total Balance Sheet Classification (In $ millions) As of June 30, 2019 Derivatives Designated as Cash Flow Hedges Commodity swaps — 5 5 Current Other assets Commodity swaps — 1 1 Noncurrent Other assets Derivatives Not Designated as Hedges Foreign currency forwards and swaps — 2 2 Current Other assets Total assets — 8 8 Derivatives Designated as Cash Flow Hedges Interest rate swaps — (36 ) (36 ) Noncurrent Other liabilities Derivatives Designated as Net Investment Hedges Cross-currency swaps — (1 ) (1 ) Current Other liabilities Cross-currency swaps — (6 ) (6 ) Noncurrent Other liabilities Derivatives Not Designated as Hedges Foreign currency forwards and swaps — (2 ) (2 ) Current Other liabilities Total liabilities — (45 ) (45 ) As of December 31, 2018 Derivatives Designated as Cash Flow Hedges Commodity swaps — 1 1 Current Other assets Derivatives Not Designated as Hedges Foreign currency forwards and swaps — 8 8 Current Other assets Total assets — 9 9 Derivatives Designated as Cash Flow Hedges Commodity swaps — (1 ) (1 ) Noncurrent Other liabilities Interest rate swaps — (10 ) (10 ) Noncurrent Other liabilities Derivatives Not Designated as Hedges Foreign currency forwards and swaps — (7 ) (7 ) Current Other liabilities Total liabilities — (18 ) (18 ) |
Schedule of Carrying Values and Fair Values of Financial Instruments | Carrying values and fair values of financial instruments that are not carried at fair value are as follows: Fair Value Measurement Carrying Amount Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total (In $ millions) As of June 30, 2019 Equity investments without readily determinable fair values 170 — — — Insurance contracts in nonqualified trusts 35 35 — 35 Long-term debt, including current installments of long-term debt 3,490 3,493 156 3,649 As of December 31, 2018 Equity investments without readily determinable fair values 164 — — — Insurance contracts in nonqualified trusts 37 37 — 37 Long-term debt, including current installments of long-term debt 3,355 3,204 167 3,371 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Business Segments | Engineered Materials Acetate Tow Acetyl Chain Other Activities Eliminations Consolidated (In $ millions) Three Months Ended June 30, 2019 Net sales 593 164 865 — (30 ) (1) 1,592 Other (charges) gains, net ( Note 14 ) (8 ) (84 ) (1 ) (5 ) — (98 ) Operating profit (loss) 103 (44 ) 188 (61 ) — 186 Equity in net earnings (loss) of affiliates 36 — 1 2 — 39 Depreciation and amortization 31 11 38 4 — 84 Capital expenditures 21 11 35 7 — 74 (2) Three Months Ended June 30, 2018 Net sales 664 162 1,049 — (31 ) (1) 1,844 Other (charges) gains, net ( Note 14 ) — (1 ) (2 ) — — (3 ) Operating profit (loss) 114 39 273 (68 ) — 358 Equity in net earnings (loss) of affiliates 53 — 2 1 — 56 Depreciation and amortization 33 13 36 4 — 86 Capital expenditures 26 10 49 3 — 88 (2) ______________________________ (1) Includes intersegment sales primarily related to the Acetyl Chain. (2) Includes an increase in accrued capital expenditures of $9 million and $9 million for the three months ended June 30, 2019 and 2018 , respectively. Engineered Materials Acetate Tow Acetyl Chain Other Activities Eliminations Consolidated (In $ millions) Six Months Ended June 30, 2019 Net sales 1,256 330 1,754 — (61 ) (1) 3,279 Other (charges) gains, net ( Note 14 ) 7 (84 ) (1 ) (16 ) — (94 ) Operating profit (loss) 247 (4 ) 390 (127 ) — 506 Equity in net earnings (loss) of affiliates 82 — 2 5 — 89 Depreciation and amortization 63 21 76 7 — 167 Capital expenditures 37 19 61 11 — 128 (2) As of June 30, 2019 Goodwill and intangible assets, net 1,020 153 237 — — 1,410 Total assets 3,589 973 3,503 1,441 — 9,506 Six Months Ended June 30, 2018 Net sales 1,329 330 2,100 — (64 ) (1) 3,695 Other (charges) gains, net ( Note 14 ) — (1 ) (2 ) — — (3 ) Operating profit (loss) 241 85 526 (151 ) — 701 Equity in net earnings (loss) of affiliates 107 — 3 4 — 114 Depreciation and amortization 65 23 71 6 — 165 Capital expenditures 47 10 83 5 — 145 (2) As of December 31, 2018 Goodwill and intangible assets, net 974 153 240 — — 1,367 Total assets 4,012 1,032 3,471 798 — 9,313 ______________________________ (1) Includes intersegment sales primarily related to the Acetyl Chain. (2) Includes a decrease in accrued capital expenditures of $16 million and $20 million for the six months ended June 30, 2019 and 2018 , respectively. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Schedule of Revenue by Major Customers by Reporting Segments | Further disaggregation of Net sales by business segment and geographic destination is as follows: Three Months Ended Six Months Ended 2019 2018 2019 2018 (In $ millions) Engineered Materials North America 180 191 376 370 Europe and Africa 269 331 571 668 Asia-Pacific 126 126 274 258 South America 18 16 35 33 Total 593 664 1,256 1,329 Acetate Tow North America 33 33 67 68 Europe and Africa 67 48 130 118 Asia-Pacific 56 68 116 119 South America 8 13 17 25 Total 164 162 330 330 Acetyl Chain North America 278 285 564 575 Europe and Africa 282 339 576 656 Asia-Pacific 252 362 508 740 South America 23 32 45 65 Total (1) 835 1,018 1,693 2,036 ______________________________ (1) Excludes intersegment sales of $30 million and $31 million for the three months ended June 30, 2019 and 2018 , respectively. Excludes intersegment sales of $61 million and $64 million for the six months ended June 30, 2019 and 2018 , respectively. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) Per Share | Three Months Ended Six Months Ended 2019 2018 2019 2018 (In $ millions, except share data) Amounts attributable to Celanese Corporation Earnings (loss) from continuing operations 210 344 548 709 Earnings (loss) from discontinued operations (1 ) — (2 ) (2 ) Net earnings (loss) 209 344 546 707 Weighted average shares - basic 125,289,967 135,589,717 126,409,926 135,752,179 Incremental shares attributable to equity awards 557,927 719,441 701,120 747,569 Weighted average shares - diluted 125,847,894 136,309,158 127,111,046 136,499,748 |
Consolidating Guarantor Finan_2
Consolidating Guarantor Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Consolidating Guarantor Financial Information [Abstract] | |
Schedule of Consolidating Statement of Operations | CELANESE CORPORATION AND SUBSIDIARIES UNAUDITED INTERIM CONSOLIDATING STATEMENT OF OPERATIONS Three Months Ended June 30, 2019 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net sales — — 586 1,298 (292 ) 1,592 Cost of sales — — (443 ) (1,020 ) 294 (1,169 ) Gross profit — — 143 278 2 423 Selling, general and administrative expenses — — (39 ) (79 ) — (118 ) Amortization of intangible assets — — (2 ) (4 ) — (6 ) Research and development expenses — — (7 ) (10 ) — (17 ) Other (charges) gains, net — — (5 ) (93 ) — (98 ) Foreign exchange gain (loss), net — — — 1 — 1 Gain (loss) on disposition of businesses and assets, net — — (2 ) 3 — 1 Operating profit (loss) — — 88 96 2 186 Equity in net earnings (loss) of affiliates 209 210 122 34 (536 ) 39 Non-operating pension and other postretirement employee benefit (expense) income — — 16 1 — 17 Interest expense — (9 ) (35 ) (13 ) 28 (29 ) Refinancing expense — (4 ) — — — (4 ) Interest income — 18 11 1 (28 ) 2 Dividend income - equity investments — — — 30 — 30 Other income (expense), net — (4 ) — 2 — (2 ) Earnings (loss) from continuing operations before tax 209 211 202 151 (534 ) 239 Income tax (provision) benefit — (2 ) (23 ) (3 ) — (28 ) Earnings (loss) from continuing operations 209 209 179 148 (534 ) 211 Earnings (loss) from operation of discontinued operations — — (2 ) — — (2 ) Income tax (provision) benefit from discontinued operations — — 1 — — 1 Earnings (loss) from discontinued operations — — (1 ) — — (1 ) Net earnings (loss) 209 209 178 148 (534 ) 210 Net (earnings) loss attributable to noncontrolling interests — — — (1 ) — (1 ) Net earnings (loss) attributable to Celanese Corporation 209 209 178 147 (534 ) 209 CELANESE CORPORATION AND SUBSIDIARIES UNAUDITED INTERIM CONSOLIDATING STATEMENT OF OPERATIONS Three Months Ended June 30, 2018 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net sales — — 586 1,566 (308 ) 1,844 Cost of sales — — (457 ) (1,171 ) 305 (1,323 ) Gross profit — — 129 395 (3 ) 521 Selling, general and administrative expenses — — (51 ) (85 ) — (136 ) Amortization of intangible assets — — (1 ) (6 ) — (7 ) Research and development expenses — — (7 ) (11 ) — (18 ) Other (charges) gains, net — — — (3 ) — (3 ) Foreign exchange gain (loss), net — — — 3 — 3 Gain (loss) on disposition of businesses and assets, net — — (3 ) 1 — (2 ) Operating profit (loss) — — 67 294 (3 ) 358 Equity in net earnings (loss) of affiliates 344 341 312 53 (994 ) 56 Non-operating pension and other postretirement employee benefit (expense) income — — 24 2 — 26 Interest expense — (5 ) (31 ) (8 ) 12 (32 ) Interest income — 10 2 2 (14 ) — Dividend income - equity investments — — — 32 2 34 Other income (expense), net — (1 ) — 1 — — Earnings (loss) from continuing operations before tax 344 345 374 376 (997 ) 442 Income tax (provision) benefit — (1 ) (69 ) (28 ) 1 (97 ) Earnings (loss) from continuing operations 344 344 305 348 (996 ) 345 Earnings (loss) from operation of discontinued operations — — (1 ) 1 — — Income tax (provision) benefit from discontinued operations — — — — — — Earnings (loss) from discontinued operations — — (1 ) 1 — — Net earnings (loss) 344 344 304 349 (996 ) 345 Net (earnings) loss attributable to noncontrolling interests — — — (1 ) — (1 ) Net earnings (loss) attributable to Celanese Corporation 344 344 304 348 (996 ) 344 CELANESE CORPORATION AND SUBSIDIARIES UNAUDITED INTERIM CONSOLIDATING STATEMENT OF OPERATIONS Six Months Ended June 30, 2019 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net sales — — 1,210 2,671 (602 ) 3,279 Cost of sales — — (901 ) (2,097 ) 595 (2,403 ) Gross profit — — 309 574 (7 ) 876 Selling, general and administrative expenses — — (79 ) (159 ) — (238 ) Amortization of intangible assets — — (4 ) (8 ) — (12 ) Research and development expenses — — (13 ) (20 ) — (33 ) Other (charges) gains, net — — (5 ) (89 ) — (94 ) Foreign exchange gain (loss), net — — — 6 — 6 Gain (loss) on disposition of businesses and assets, net — — (4 ) 5 — 1 Operating profit (loss) — — 204 309 (7 ) 506 Equity in net earnings (loss) of affiliates 546 547 339 77 (1,420 ) 89 Non-operating pension and other postretirement employee benefit (expense) income — — 31 3 — 34 Interest expense — (19 ) (66 ) (20 ) 45 (60 ) Refinancing expense — (4 ) — — — (4 ) Interest income — 31 13 4 (45 ) 3 Dividend income - equity investments — — — 62 — 62 Other income (expense), net — (3 ) — (3 ) — (6 ) Earnings (loss) from continuing operations before tax 546 552 521 432 (1,427 ) 624 Income tax (provision) benefit — (6 ) (30 ) (39 ) 1 (74 ) Earnings (loss) from continuing operations 546 546 491 393 (1,426 ) 550 Earnings (loss) from operation of discontinued operations — — (3 ) — — (3 ) Income tax (provision) benefit from discontinued operations — — 1 — — 1 Earnings (loss) from discontinued operations — — (2 ) — — (2 ) Net earnings (loss) 546 546 489 393 (1,426 ) 548 Net (earnings) loss attributable to noncontrolling interests — — — (2 ) — (2 ) Net earnings (loss) attributable to Celanese Corporation 546 546 489 391 (1,426 ) 546 CELANESE CORPORATION AND SUBSIDIARIES UNAUDITED INTERIM CONSOLIDATING STATEMENT OF OPERATIONS Six Months Ended June 30, 2018 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net sales — — 1,168 3,138 (611 ) 3,695 Cost of sales — — (905 ) (2,365 ) 611 (2,659 ) Gross profit — — 263 773 — 1,036 Selling, general and administrative expenses — — (110 ) (173 ) — (283 ) Amortization of intangible assets — — (2 ) (11 ) — (13 ) Research and development expenses — — (15 ) (21 ) — (36 ) Other (charges) gains, net — — — (3 ) — (3 ) Foreign exchange gain (loss), net — — — 2 — 2 Gain (loss) on disposition of businesses and assets, net — — (5 ) 3 — (2 ) Operating profit (loss) — — 131 570 — 701 Equity in net earnings (loss) of affiliates 707 701 586 106 (1,986 ) 114 Non-operating pension and other postretirement employee benefit (expense) income — — 47 5 — 52 Interest expense — (10 ) (60 ) (17 ) 22 (65 ) Interest income — 18 4 4 (24 ) 2 Dividend income - equity investments — — — 64 2 66 Other income (expense), net — — — 4 — 4 Earnings (loss) from continuing operations before tax 707 709 708 736 (1,986 ) 874 Income tax (provision) benefit — (2 ) (105 ) (55 ) — (162 ) Earnings (loss) from continuing operations 707 707 603 681 (1,986 ) 712 Earnings (loss) from operation of discontinued operations — — (1 ) (1 ) — (2 ) Income tax (provision) benefit from discontinued operations — — — — — — Earnings (loss) from discontinued operations — — (1 ) (1 ) — (2 ) Net earnings (loss) 707 707 602 680 (1,986 ) 710 Net (earnings) loss attributable to noncontrolling interests — — — (3 ) — (3 ) Net earnings (loss) attributable to Celanese Corporation 707 707 602 677 (1,986 ) 707 |
Schedule of Consolidating Statements of Comprehensive Income (Loss) | CELANESE CORPORATION AND SUBSIDIARIES UNAUDITED INTERIM CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended June 30, 2019 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net earnings (loss) 209 209 178 148 (534 ) 210 Other comprehensive income (loss), net of tax Foreign currency translation gain (loss) (11 ) (11 ) 2 4 5 (11 ) Gain (loss) on cash flow hedges (13 ) (13 ) (3 ) (3 ) 19 (13 ) Total other comprehensive income (loss), net of tax (24 ) (24 ) (1 ) 1 24 (24 ) Total comprehensive income (loss), net of tax 185 185 177 149 (510 ) 186 Comprehensive (income) loss attributable to noncontrolling interests — — — (1 ) — (1 ) Comprehensive income (loss) attributable to Celanese Corporation 185 185 177 148 (510 ) 185 Three Months Ended June 30, 2018 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net earnings (loss) 344 344 304 349 (996 ) 345 Other comprehensive income (loss), net of tax Unrealized gain (loss) on marketable securities — — 5 13 (18 ) — Foreign currency translation gain (loss) (66 ) (66 ) (109 ) (132 ) 307 (66 ) Gain (loss) on cash flow hedges 6 6 5 6 (17 ) 6 Total other comprehensive income (loss), net of tax (60 ) (60 ) (99 ) (113 ) 272 (60 ) Total comprehensive income (loss), net of tax 284 284 205 236 (724 ) 285 Comprehensive (income) loss attributable to noncontrolling interests — — — (1 ) — (1 ) Comprehensive income (loss) attributable to Celanese Corporation 284 284 205 235 (724 ) 284 CELANESE CORPORATION AND SUBSIDIARIES UNAUDITED INTERIM CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Six Months Ended June 30, 2019 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net earnings (loss) 546 546 489 393 (1,426 ) 548 Other comprehensive income (loss), net of tax Foreign currency translation gain (loss) (4 ) (4 ) (16 ) (20 ) 40 (4 ) Gain (loss) on cash flow hedges (16 ) (16 ) 3 5 8 (16 ) Total other comprehensive income (loss), net of tax (20 ) (20 ) (13 ) (15 ) 48 (20 ) Total comprehensive income (loss), net of tax 526 526 476 378 (1,378 ) 528 Comprehensive (income) loss attributable to noncontrolling interests — — — (2 ) — (2 ) Comprehensive income (loss) attributable to Celanese Corporation 526 526 476 376 (1,378 ) 526 Six Months Ended June 30, 2018 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net earnings (loss) 707 707 602 680 (1,986 ) 710 Other comprehensive income (loss), net of tax Unrealized gain (loss) on marketable securities — — 5 13 (18 ) — Foreign currency translation gain (loss) (17 ) (17 ) (46 ) (58 ) 121 (17 ) Gain (loss) on cash flow hedges 5 5 4 5 (14 ) 5 Pension and postretirement benefits gain (loss) 1 1 1 1 (3 ) 1 Total other comprehensive income (loss), net of tax (11 ) (11 ) (36 ) (39 ) 86 (11 ) Total comprehensive income (loss), net of tax 696 696 566 641 (1,900 ) 699 Comprehensive (income) loss attributable to noncontrolling interests — — — (3 ) — (3 ) Comprehensive income (loss) attributable to Celanese Corporation 696 696 566 638 (1,900 ) 696 |
Schedule of Consolidating Balance Sheet | CELANESE CORPORATION AND SUBSIDIARIES UNAUDITED CONSOLIDATING BALANCE SHEET As of June 30, 2019 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) ASSETS Current Assets Cash and cash equivalents — — 51 440 — 491 Trade receivables - third party and affiliates — — 100 991 (120 ) 971 Non-trade receivables, net 40 1,025 1,631 611 (2,975 ) 332 Inventories, net — — 327 739 (55 ) 1,011 Marketable securities, at fair value — — 27 — — 27 Other assets — 28 23 39 (46 ) 44 Total current assets 40 1,053 2,159 2,820 (3,196 ) 2,876 Investments in affiliates 3,760 4,937 4,126 832 (12,696 ) 959 Property, plant and equipment, net — — 1,349 2,293 — 3,642 Operating lease right-of-use assets — — 55 154 — 209 Deferred income taxes — — — 92 (2 ) 90 Other assets — 1,658 176 452 (1,966 ) 320 Goodwill — — 399 684 — 1,083 Intangible assets, net — — 129 198 — 327 Total assets 3,800 7,648 8,393 7,525 (17,860 ) 9,506 LIABILITIES AND EQUITY Current Liabilities Short-term borrowings and current installments of long-term debt - third party and affiliates 910 197 819 752 (2,359 ) 319 Trade payables - third party and affiliates 25 1 270 588 (120 ) 764 Other liabilities — 41 151 268 (158 ) 302 Income taxes payable — — 500 28 (505 ) 23 Total current liabilities 935 239 1,740 1,636 (3,142 ) 1,408 Noncurrent Liabilities Long-term debt — 3,590 1,678 114 (1,938 ) 3,444 Deferred income taxes — 15 85 167 (2 ) 265 Uncertain tax positions 1 2 5 163 — 171 Benefit obligations — — 242 303 — 545 Operating lease liabilities — — 44 148 — 192 Other liabilities — 42 98 125 (38 ) 227 Total noncurrent liabilities 1 3,649 2,152 1,020 (1,978 ) 4,844 Total Celanese Corporation stockholders' equity 2,864 3,760 4,501 4,479 (12,740 ) 2,864 Noncontrolling interests — — — 390 — 390 Total equity 2,864 3,760 4,501 4,869 (12,740 ) 3,254 Total liabilities and equity 3,800 7,648 8,393 7,525 (17,860 ) 9,506 CELANESE CORPORATION AND SUBSIDIARIES UNAUDITED CONSOLIDATING BALANCE SHEET As of December 31, 2018 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) ASSETS Current Assets Cash and cash equivalents — — 30 409 — 439 Trade receivables - third party and affiliates — — 96 1,040 (119 ) 1,017 Non-trade receivables, net 40 551 797 697 (1,784 ) 301 Inventories, net — — 329 765 (48 ) 1,046 Marketable securities, at fair value — — 31 — — 31 Other assets — 24 10 37 (31 ) 40 Total current assets 40 575 1,293 2,948 (1,982 ) 2,874 Investments in affiliates 3,503 4,820 4,678 855 (12,877 ) 979 Property, plant and equipment, net — — 1,289 2,430 — 3,719 Deferred income taxes — — — 86 (2 ) 84 Other assets — 1,658 142 461 (1,971 ) 290 Goodwill — — 399 658 — 1,057 Intangible assets, net — — 132 178 — 310 Total assets 3,543 7,053 7,933 7,616 (16,832 ) 9,313 LIABILITIES AND EQUITY Current Liabilities Short-term borrowings and current installments of long-term debt - third party and affiliates 544 333 465 258 (1,039 ) 561 Trade payables - third party and affiliates 13 1 342 583 (120 ) 819 Other liabilities 1 87 267 258 (270 ) 343 Income taxes payable — — 475 88 (507 ) 56 Total current liabilities 558 421 1,549 1,187 (1,936 ) 1,779 Noncurrent Liabilities Long-term debt — 3,104 1,679 127 (1,940 ) 2,970 Deferred income taxes — 15 85 157 (2 ) 255 Uncertain tax positions — — 6 152 — 158 Benefit obligations — — 250 314 — 564 Other liabilities 1 10 99 138 (40 ) 208 Total noncurrent liabilities 1 3,129 2,119 888 (1,982 ) 4,155 Total Celanese Corporation stockholders' equity 2,984 3,503 4,265 5,146 (12,914 ) 2,984 Noncontrolling interests — — — 395 — 395 Total equity 2,984 3,503 4,265 5,541 (12,914 ) 3,379 Total liabilities and equity 3,543 7,053 7,933 7,616 (16,832 ) 9,313 |
Schedule of Consolidating Statement of Cash Flows | CELANESE CORPORATION AND SUBSIDIARIES UNAUDITED INTERIM CONSOLIDATING STATEMENT OF CASH FLOWS Six Months Ended June 30, 2019 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net cash provided by (used in) operating activities 636 (31 ) 1,052 635 (1,561 ) 731 Investing Activities Capital expenditures on property, plant and equipment — — (83 ) (61 ) — (144 ) Acquisitions, net of cash acquired — — (31 ) (60 ) — (91 ) Return of capital from subsidiary — — 7 — (7 ) — Intercompany loan receipts (disbursements) — — (653 ) — 653 — Other, net — — 2 (10 ) — (8 ) Net cash provided by (used in) investing activities — — (758 ) (131 ) 646 (243 ) Financing Activities Net change in short-term borrowings with maturities of 3 months or less — 149 3 (4 ) (43 ) 105 Proceeds from short-term borrowings — — — 610 (610 ) — Repayments of short-term borrowings — — — (12 ) — (12 ) Proceeds from long-term debt — 499 — — — 499 Repayments of long-term debt — (335 ) (1 ) (12 ) — (348 ) Purchases of treasury stock, including related fees (488 ) — — — — (488 ) Dividends to parent — (272 ) (251 ) (1,038 ) 1,561 — Common stock dividends (148 ) — — — — (148 ) Return of capital to parent — — — (7 ) 7 — (Distributions to) contributions from noncontrolling interests — — — (7 ) — (7 ) Other, net — (10 ) (24 ) (4 ) — (38 ) Net cash provided by (used in) financing activities (636 ) 31 (273 ) (474 ) 915 (437 ) Exchange rate effects on cash and cash equivalents — — — 1 — 1 Net increase (decrease) in cash and cash equivalents — — 21 31 — 52 Cash and cash equivalents as of beginning of period — — 30 409 — 439 Cash and cash equivalents as of end of period — — 51 440 — 491 CELANESE CORPORATION AND SUBSIDIARIES UNAUDITED INTERIM CONSOLIDATING STATEMENT OF CASH FLOWS Six Months Ended June 30, 2018 Parent Guarantor Issuer Subsidiary Guarantors Non- Guarantors Eliminations Consolidated (In $ millions) Net cash provided by (used in) operating activities 238 432 115 630 (687 ) 728 Investing Activities Capital expenditures on property, plant and equipment — — (109 ) (56 ) — (165 ) Acquisitions, net of cash acquired — — (144 ) — — (144 ) Proceeds from sale of businesses and assets, net — — — 9 — 9 Return of capital from subsidiary — — 218 — (218 ) — Contributions to subsidiary — — (16 ) — 16 — Intercompany loan receipts (disbursements) — (272 ) (10 ) — 282 — Other, net — — (7 ) (24 ) — (31 ) Net cash provided by (used in) investing activities — (272 ) (68 ) (71 ) 80 (331 ) Financing Activities Net change in short-term borrowings with maturities of 3 months or less — 90 11 (51 ) (10 ) 40 Proceeds from short-term borrowings — — — 36 — 36 Repayments of short-term borrowings — — — (39 ) — (39 ) Proceeds from long-term debt — — 272 — (272 ) — Repayments of long-term debt — (12 ) (13 ) (18 ) — (43 ) Purchases of treasury stock, including related fees (100 ) — — — — (100 ) Dividends to parent — (238 ) (449 ) — 687 — Contributions from parent — — — 16 (16 ) — Common stock dividends (136 ) — — — — (136 ) Return of capital to parent — — — (218 ) 218 — (Distributions to) contributions from noncontrolling interests — — — (8 ) — (8 ) Other, net — — (5 ) (1 ) — (6 ) Net cash provided by (used in) financing activities (236 ) (160 ) (184 ) (283 ) 607 (256 ) Exchange rate effects on cash and cash equivalents — — — (9 ) — (9 ) Net increase (decrease) in cash and cash equivalents 2 — (137 ) 267 — 132 Cash and cash equivalents as of beginning of period — — 230 346 — 576 Cash and cash equivalents as of end of period 2 — 93 613 — 708 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements Adoption of ASU 2016-02 (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 209 | $ 0 | |
Operating Lease, Liability | $ 223 | ||
Accounting Standards Update 2016-02 [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 223 | ||
Operating Lease, Liability | $ 240 |
Acquisitions, Dispositions an_3
Acquisitions, Dispositions and Plant Closures Plant Closures (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairments | $ 83 | $ 0 | $ 83 | $ 0 | |
Restructuring | (15) | (3) | (14) | (3) | |
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | (1) | $ 2 | (1) | $ 2 | |
Ocotlán, Mexico [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairments | [1] | 83 | |||
Restructuring | [1] | (1) | |||
Restructuring and Related Cost, Accelerated Depreciation | 1 | ||||
Plant Shutdown Costs | 85 | ||||
Restructuring and Related Cost, Expected Cost | $ 20 | $ 20 | |||
[1] | Included in Other (charges) gains, net in the consolidated statement of operations ( Note 18 ). |
Ventures and Variable Interes_3
Ventures and Variable Interest Entities (Schedule of Variable Interest Entities) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | $ 491 | $ 439 | $ 708 | $ 576 | |
Trade receivables - third party and affiliates | 971 | 1,017 | |||
Property, plant and equipment (net of accumulated depreciation - 2019: $151; 2018: $130) | 3,642 | 3,719 | |||
Accumulated depreciation | 2,828 | 2,803 | |||
Intangible assets (net of accumulated amortization - 2019: $4; 2018: $3) | 327 | 310 | |||
Accumulated amortization | 605 | 595 | |||
Other assets | 320 | 290 | |||
Total assets | 9,506 | 9,313 | |||
Trade payables | 764 | 819 | |||
Other liabilities | 1,408 | 1,779 | |||
Deferred income taxes | 265 | 255 | |||
Variable Interest Entity, Primary Beneficiary [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 23 | 24 | |||
Trade receivables - third party and affiliates | 5 | 6 | |||
Property, plant and equipment (net of accumulated depreciation - 2019: $151; 2018: $130) | 641 | 659 | |||
Intangible assets (net of accumulated amortization - 2019: $4; 2018: $3) | 23 | 23 | |||
Other assets | 3 | 5 | |||
Variable Interest Entity, Not Primary Beneficiary [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Property, plant and equipment (net of accumulated depreciation - 2019: $151; 2018: $130) | 37 | 42 | |||
Trade payables | 28 | 27 | |||
Long-term debt | 50 | 58 | |||
Total liabilities | 93 | 99 | |||
Current installments of long-term debt | 15 | 14 | |||
Maximum exposure to loss | 124 | 134 | |||
Fairway Methanol LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 29 | 24 | |||
Trade receivables - third party and affiliates | 10 | 11 | |||
Property, plant and equipment (net of accumulated depreciation - 2019: $151; 2018: $130) | 641 | 659 | |||
Accumulated depreciation | 151 | 130 | |||
Intangible assets (net of accumulated amortization - 2019: $4; 2018: $3) | 23 | 23 | |||
Accumulated amortization | 4 | 3 | |||
Other assets | 3 | 5 | |||
Total assets | [1] | 706 | 722 | ||
Trade payables | 11 | 16 | |||
Other liabilities | [2] | 3 | 4 | ||
Long-term debt | 4 | 5 | |||
Deferred income taxes | 4 | 3 | |||
Total liabilities | $ 22 | $ 28 | |||
[1] | Assets can only be used to settle the obligations of Fairway. | ||||
[2] | Primarily represents amounts owed by Fairway to the Company for reimbursement of expenditures. |
Ventures and Variable Interes_4
Ventures and Variable Interest Entities (Narrative) (Details) | 3 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entity, Primary Beneficiary [Member] | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 50.00% |
Marketable Securities (Schedule
Marketable Securities (Schedule of Available-for-sale Securities) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Investments [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 27 | $ 31 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 688 | $ 697 |
Work-in-process | 73 | 70 |
Raw materials and supplies | 250 | 279 |
Total | $ 1,011 | $ 1,046 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, net (Schedule of Goodwill) (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2019USD ($) | ||
Goodwill [Line Items] | ||
As of December 31, 2018 | $ 1,057 | |
Acquisitions | 29 | |
Exchange rate changes | (3) | |
As of March 31, 2019 | 1,083 | [1] |
Goodwill, Impaired, Accumulated Impairment Loss | 0 | |
Engineered Materials [Member] | ||
Goodwill [Line Items] | ||
As of December 31, 2018 | 707 | |
Acquisitions | 29 | [2] |
Exchange rate changes | (2) | |
As of March 31, 2019 | 734 | [1] |
Acetate Tow [Member] | ||
Goodwill [Line Items] | ||
As of December 31, 2018 | 148 | |
Acquisitions | 0 | |
Exchange rate changes | 0 | |
As of March 31, 2019 | 148 | [1] |
Acetyl Chain [Member] | ||
Goodwill [Line Items] | ||
As of December 31, 2018 | 202 | |
Acquisitions | 0 | |
Exchange rate changes | (1) | |
As of March 31, 2019 | $ 201 | [1] |
[1] | There were $0 million of accumulated impairment losses as of June 30, 2019 . | |
[2] | Represents goodwill related to the acquisition of Next Polymers Ltd. |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, net (Schedule of Finite-lived intangible assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Finite-Lived Intangible Assets [Line Items] | |||||
As of December 31, 2018 | $ 793 | ||||
Acquisitions | [1] | 25 | |||
Exchange rate changes | (2) | ||||
As of June 30, 2019 | $ 816 | 816 | |||
As of December 31, 2018 | (595) | ||||
Amortization | (6) | $ (7) | (12) | $ (13) | |
Exchange rate changes | 2 | ||||
As of June 30, 2019 | (605) | (605) | |||
Net book value | 211 | 211 | |||
Licensing Agreements [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
As of December 31, 2018 | 42 | ||||
Acquisitions | 0 | ||||
Exchange rate changes | 0 | ||||
As of June 30, 2019 | 42 | 42 | |||
As of December 31, 2018 | (33) | ||||
Amortization | (1) | ||||
Exchange rate changes | 0 | ||||
As of June 30, 2019 | (34) | (34) | |||
Net book value | 8 | 8 | |||
Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
As of December 31, 2018 | 651 | ||||
Acquisitions | 25 | ||||
Exchange rate changes | (2) | ||||
As of June 30, 2019 | 674 | 674 | |||
As of December 31, 2018 | (495) | ||||
Amortization | (8) | ||||
Exchange rate changes | 2 | ||||
As of June 30, 2019 | (501) | (501) | |||
Net book value | 173 | 173 | |||
Developed Technology Rights [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
As of December 31, 2018 | 44 | ||||
Acquisitions | 0 | ||||
Exchange rate changes | 0 | ||||
As of June 30, 2019 | 44 | 44 | |||
As of December 31, 2018 | (32) | ||||
Amortization | (2) | ||||
Exchange rate changes | 0 | ||||
As of June 30, 2019 | (34) | (34) | |||
Net book value | 10 | 10 | |||
Other Intangible Assets [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
As of December 31, 2018 | 56 | ||||
Acquisitions | 0 | ||||
Exchange rate changes | 0 | ||||
As of June 30, 2019 | 56 | 56 | |||
As of December 31, 2018 | (35) | ||||
Amortization | (1) | ||||
Exchange rate changes | 0 | ||||
As of June 30, 2019 | (36) | (36) | |||
Net book value | $ 20 | $ 20 | |||
Omni Plastics [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 13 years | ||||
[1] | Represents intangible assets acquired related to Next Polymers Ltd. with a weighted average amortization period of 13 years . |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, net (Schedule of Indefinite-lived intangible assets) (Details) - Trademarks and Trade Names [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Indefinite-lived Intangible Assets [Line Items] | |
As of December 31, 2018 | $ 112 |
Acquisitions | 4 |
Accumulated impairment losses | 0 |
Exchange rate changes | 0 |
As of June 30, 2019 | $ 116 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, net (Schedule of Future amortization expense) (Details) $ in Millions | Jun. 30, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 22 |
2021 | 21 |
2022 | 19 |
2023 | 17 |
2024 | $ 15 |
Current Other Liabilities (Deta
Current Other Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Other Liabilities, Current [Abstract] | ||
Asset retirement obligations | $ 7 | $ 3 |
Benefit obligations (Note 11) | 30 | 30 |
Customer rebates (Note 21) | 47 | 76 |
Derivatives (Note 17) | 3 | 7 |
Environmental (Note 12) | 16 | 20 |
Insurance | 4 | 4 |
Interest | 26 | 21 |
Operating leases (Note 16) | 31 | 0 |
Restructuring (Note 14) | 15 | 4 |
Salaries and benefits | 69 | 119 |
Sales and use tax/foreign withholding tax payable | 17 | 22 |
Other | 37 | 37 |
Total | $ 302 | $ 343 |
Noncurrent Other Liabilities (D
Noncurrent Other Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Other Liabilities, Noncurrent [Abstract] | ||
Asset retirement obligations | $ 14 | $ 13 |
Deferred proceeds | 44 | 44 |
Deferred revenue (Note 21) | 7 | 7 |
Derivatives (Note 17) | 42 | 11 |
Environmental (Note 12) | 49 | 49 |
Insurance | 41 | 37 |
Other | 30 | 47 |
Total | $ 227 | $ 208 |
Debt (Schedule of Short-term De
Debt (Schedule of Short-term Debt) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates | |||
Current installments of long-term debt | $ 26 | $ 367 | |
Short-term borrowings, including amounts due to affiliates | [1] | 68 | 77 |
Total | $ 319 | $ 561 | |
Weighted average interest rate, short-term borrowings | 2.90% | 3.20% | |
Revolving Credit Facility [Member] | |||
Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates | |||
Weighted average interest rate, short-term borrowings | 1.30% | 6.00% | |
Accounts Receivable Securitization Facility [Member] | |||
Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates | |||
Borrowings outstanding | [2] | $ 77 | $ 77 |
Weighted average interest rate, short-term borrowings | 3.30% | 3.10% | |
Revolving Credit Facility [Member] | |||
Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates | |||
Borrowings outstanding | [3] | $ 148 | $ 40 |
[1] | The weighted average interest rate was 2.9% and 3.2% as of June 30, 2019 and December 31, 2018 , respectively. | ||
[2] | The weighted average interest rate was 3.3% and 3.1% as of June 30, 2019 and December 31, 2018 , respectively. | ||
[3] | The weighted average interest rate was 1.3% and 6.0% as of June 30, 2019 and December 31, 2018 , respectively. |
Debt (Schedule of Long-term Deb
Debt (Schedule of Long-term Debt) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Long-Term Debt | |||
Finance Lease, Liability | $ 156 | $ 167 | |
Subtotal | 3,490 | 3,355 | |
Unamortized debt issuance costs | [1] | (20) | (18) |
Current installments of long-term debt | (26) | (367) | |
Total | 3,444 | 2,970 | |
Senior Unsecured Notes Due 2019 [Member] | |||
Long-Term Debt | |||
Senior unsecured debt | $ 0 | 343 | |
Interest rate | 3.25% | ||
Date of maturity | Oct. 15, 2019 | ||
Senior Unsecured Notes Due 2021 [Member] | |||
Long-Term Debt | |||
Senior unsecured debt | $ 400 | 400 | |
Interest rate | 5.875% | ||
Date of maturity | Jun. 15, 2021 | ||
Senior Unsecured Notes Due 2022 [Member] | |||
Long-Term Debt | |||
Senior unsecured debt | $ 500 | 500 | |
Interest rate | 4.625% | ||
Date of maturity | Nov. 15, 2022 | ||
Senior Unsecured Notes Due 2023 [Member] | |||
Long-Term Debt | |||
Senior unsecured debt | $ 852 | 857 | |
Interest rate | 1.125% | ||
Date of maturity | Sep. 26, 2023 | ||
Senior Unsecured Notes Due 2024 [Member] | |||
Long-Term Debt | |||
Senior unsecured debt | $ 499 | 0 | |
Interest rate | 3.50% | ||
Date of maturity | May 8, 2024 | ||
Senior Unsecured Notes Due 2025 [Member] | |||
Long-Term Debt | |||
Senior unsecured debt | $ 341 | 343 | |
Interest rate | 1.25% | ||
Date of maturity | Dec. 11, 2025 | ||
Senior Unsecured Notes Due 2027 [Member] | |||
Long-Term Debt | |||
Senior unsecured debt | $ 565 | 568 | |
Interest rate | 2.125% | ||
Date of maturity | Mar. 1, 2027 | ||
Refunding loan for pollution control and industrial revenue bonds [Member] | |||
Long-Term Debt | |||
Other long-term debt | $ 167 | $ 167 | |
Date of maturity | Dec. 31, 2030 | ||
Nylon compounding division of Nilit Group [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 1.30% | 1.30% | |
Long-Term Debt | |||
Other long-term debt | [2] | $ 10 | $ 10 |
Date of maturity | Dec. 31, 2026 | ||
Obligations Under Capital Leases [Member] | |||
Long-Term Debt | |||
Date of maturity | Dec. 31, 2054 | ||
Minimum [Member] | Refunding loan for pollution control and industrial revenue bonds [Member] | |||
Long-Term Debt | |||
Interest rate | 4.05% | ||
Maximum [Member] | Refunding loan for pollution control and industrial revenue bonds [Member] | |||
Long-Term Debt | |||
Interest rate | 5.00% | ||
[1] | Related to the Company's long-term debt, excluding obligations under finance leases. | ||
[2] | The weighted average interest rate was 1.3% and 1.3% as of June 30, 2019 and December 31, 2018 , respectively. |
Debt (Senior Credit Facilities
Debt (Senior Credit Facilities Narrative) (Details) $ in Millions | Jan. 07, 2019USD ($) | |
Revolving Credit Facility [Member] | Senior Unsecured Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing base | $ 1,250 | [1] |
[1] | The margin for borrowings under the senior unsecured revolving credit facility was 1.25% above LIBOR or EURIBOR at current Company credit ratings. |
Debt (Schedule of Revolving Cre
Debt (Schedule of Revolving Credit Facility) (Details) - Revolving Credit Facility [Member] - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Line of Credit Facility [Line Items] | ||||
Repayments of Lines of Credit | $ 156 | |||
Borrowings outstanding | [1] | $ 148 | 148 | $ 40 |
Senior Unsecured Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Proceeds from Lines of Credit | 869 | |||
Repayments of Lines of Credit | 763 | |||
Borrowings outstanding | [2] | 148 | 148 | |
Letters of credit issued | 0 | 0 | ||
Available for borrowing | [3] | $ 1,102 | $ 1,102 | |
London Interbank Offered Rate (LIBOR) [Member] | Senior Unsecured Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||
[1] | The weighted average interest rate was 1.3% and 6.0% as of June 30, 2019 and December 31, 2018 , respectively. | |||
[2] | The Company borrowed $869 million and repaid $763 million under its senior unsecured revolving credit facility during the six months ended June 30, 2019 . | |||
[3] | The margin for borrowings under the senior unsecured revolving credit facility was 1.25% above LIBOR or EURIBOR at current Company credit ratings. |
Debt (Schedule of Senior Notes)
Debt (Schedule of Senior Notes) (Details) € in Millions, $ in Millions | 6 Months Ended | |
Jun. 30, 2019USD ($) | May 08, 2019EUR (€) | |
Debt Instrument [Line Items] | ||
Debt Instrument, Redemption Price, Percentage | 100.00% | |
Senior Unsecured Notes Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | € | € 500 | |
Percentage of Face | 99.895% | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Repayments of Lines of Credit | $ | $ 156 |
Debt (Schedule of Accounts Rece
Debt (Schedule of Accounts Receivable Securitization Facility) (Details) - Accounts Receivable Securitization Facility [Member] - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2018 | ||
Debt Instrument [Line Items] | |||
Borrowings outstanding | [1] | $ 77 | $ 77 |
Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Borrowings outstanding | 77 | ||
Letters of credit issued | 29 | ||
Available for borrowing | 5 | ||
Total borrowing base | 111 | ||
Maximum borrowing base | [2] | 120 | |
Outstanding accounts receivable transferred by the Originators to the Transferor | $ 188 | ||
[1] | The weighted average interest rate was 3.3% and 3.1% as of June 30, 2019 and December 31, 2018 , respectively. | ||
[2] | Outstanding accounts receivable transferred to the SPE was $188 million . |
Debt Other Financing Arrangemen
Debt Other Financing Arrangement (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Other Financing Arrangements [Abstract] | ||
Transfer of Financial Assets Accounted for as Sales, Amount Derecognized | $ 134 | $ 117 |
Benefit Obligations (Schedule o
Benefit Obligations (Schedule of Net Periodic Benefit Costs Recognized) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2 | $ 3 | $ 4 | $ 5 |
Interest cost | 29 | 26 | 58 | 52 |
Expected return on plan assets | (47) | (53) | (93) | (105) |
Special termination benefit | 0 | 1 | 0 | 1 |
Total | (16) | (23) | (31) | (47) |
Postretirement Benefit Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 1 | 1 | 1 | 1 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Special termination benefit | 0 | 0 | 0 | 0 |
Total | $ 1 | $ 1 | $ 1 | $ 1 |
Benefit Obligations (Schedule_2
Benefit Obligations (Schedule of Company Commitments to Fund Benefit Obligations) (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2019USD ($) | ||
Multiemployer Plans, Pension [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total contributions year-to-date | $ 4 | [1] |
Total expected contributions in current fiscal year | 9 | [1] |
Cash Contributions to Defined Benefit Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total contributions year-to-date | 11 | |
Total expected contributions in current fiscal year | 22 | |
Other Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total contributions year-to-date | 11 | |
Total expected contributions in current fiscal year | 21 | |
Postretirement Benefit Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total contributions year-to-date | 2 | |
Total expected contributions in current fiscal year | $ 5 | |
[1] | The Company makes contributions based on specified percentages of employee contributions. |
Environmental (Schedule of Envi
Environmental (Schedule of Environmental Remediation Reserves) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Environmental Remediation Obligations [Abstract] | ||
Demerger obligations (Note 19) | $ 25 | $ 26 |
Divestiture obligations (Note 19) | 13 | 16 |
Active sites | 14 | 14 |
US Superfund sites | 11 | 11 |
Other environmental remediation liabilities | 2 | 2 |
Total | $ 65 | $ 69 |
Environmental (US Superfund Sit
Environmental (US Superfund Sites Narrative) (Details) - Passaic River, New Jersey [Member] $ in Billions | Mar. 31, 2016USD ($) | Jun. 30, 2019 |
Site Contingency [Line Items] | ||
Number of parties included in USEPA order | 70 | |
Cost of EPA's plan estimate | $ 1.4 | |
Environmental Liability Percentage | 1.00% |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Dividend Increases) (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 15, 2019 | Apr. 30, 2019 | Apr. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | |||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | |||
Common stock, dividends, rate increase, percent | 15.00% | 17.00% | |||
Quarterly Common Stock Cash Dividend | $ 0.62 | $ 0.54 | |||
Annual Common Stock Cash Dividend | $ 2.48 | $ 2.16 | |||
Subsequent Event [Member] | |||||
Class of Stock [Line Items] | |||||
Common Stock, Dividends, Per Share, Declared | $ 0.62 | ||||
Dividends, Common Stock, Cash | $ 77 |
Stockholders' Equity (Schedul_2
Stockholders' Equity (Schedule of Treasury Stock) (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | 137 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | ||
Class of Stock [Line Items] | ||||
Shares repurchased | 4,890,155 | 888,383 | 52,602,866 | |
Average purchase price per share | $ 102.25 | $ 112.56 | $ 69.44 | |
Shares repurchased (in $ millions) | $ 500 | $ 100 | $ 3,653 | |
Aggregate Board of Directors repurchase authorizations (in $ millions) | [1] | $ 1,500 | $ 0 | $ 5,366 |
[1] | These authorizations give management discretion in determining the timing and conditions under which shares may be repurchased. This repurchase program began in February 2008 and does not have an expiration date. |
Stockholders' Equity (Schedul_3
Stockholders' Equity (Schedule of Components of Other Comprehensive Income (Loss), Net) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | ||||
Foreign currency translation gain (loss), gross amount | $ (12) | $ (72) | $ 1 | $ (27) |
Foreign currency translation gain (loss), income tax (provision) benefit | 1 | 6 | (5) | 10 |
Foreign currency translation gain (loss), net | (11) | (66) | (4) | (17) |
Gain (loss) on cash flow hedges, gross amount | (19) | 6 | (22) | 4 |
Gain (loss) on cash flow hedges, income tax (provision) benefit | 6 | 0 | 6 | 1 |
Gain (loss) on cash flow hedges, net | (13) | 6 | (16) | 5 |
Pension and postretirement benefits gain (loss), gross amount | 0 | 0 | 0 | 1 |
Pension and postretirement benefits gain (loss), income tax (provision) benefit | 0 | 0 | 0 | 0 |
Pension and postretirement benefits gain (loss), net | 0 | 0 | 0 | 1 |
Other Comprehensive Income (Loss), before Tax | (31) | (66) | (21) | (22) |
Income tax (provision) benefit | 7 | 6 | 1 | 11 |
Total other comprehensive income (loss), net of tax | $ (24) | $ (60) | $ (20) | $ (11) |
Stockholders' Equity (Schedul_4
Stockholders' Equity (Schedule of Adjustments to Accumulated Other Comprehensive Income (Loss), Net) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), net [Line Items] | ||||
As of December 31, 2018 | $ (247) | |||
Other comprehensive income (loss) before reclassifications | (17) | |||
Amounts reclassified from accumulated other comprehensive income (loss) | (4) | |||
Income tax (provision) benefit | $ 7 | $ 6 | 1 | $ 11 |
As of June 30, 2019 | (267) | (267) | ||
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss), net [Line Items] | ||||
As of December 31, 2018 | (236) | |||
Other comprehensive income (loss) before reclassifications | 1 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | |||
Income tax (provision) benefit | (5) | |||
As of June 30, 2019 | (240) | (240) | ||
Gain (Loss) from Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss), net [Line Items] | ||||
As of December 31, 2018 | (8) | |||
Other comprehensive income (loss) before reclassifications | (18) | |||
Amounts reclassified from accumulated other comprehensive income (loss) | (4) | |||
Income tax (provision) benefit | 6 | |||
As of June 30, 2019 | (24) | (24) | ||
Pension and Postretirement Benefits [Member] | ||||
Accumulated Other Comprehensive Income (Loss), net [Line Items] | ||||
As of December 31, 2018 | (3) | |||
Other comprehensive income (loss) before reclassifications | 0 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | |||
Income tax (provision) benefit | 0 | |||
As of June 30, 2019 | $ (3) | $ (3) |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 15, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | |
Class of Stock [Line Items] | ||||||
Aggregate Board of Directors repurchase authorizations (in $ millions) | [1] | $ 1,500 | $ 0 | $ 5,366 | ||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Subsequent Event [Member] | ||||||
Class of Stock [Line Items] | ||||||
Common Stock, Dividends, Per Share, Declared | $ 0.62 | |||||
Dividends, Common Stock, Cash | $ 77 | |||||
[1] | These authorizations give management discretion in determining the timing and conditions under which shares may be repurchased. This repurchase program began in February 2008 and does not have an expiration date. |
Other (Charges) Gains, Net (Sch
Other (Charges) Gains, Net (Schedule of Other (Charges) Gains, Net) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairments | $ 83 | $ 0 | $ 83 | $ 0 | |
Restructuring | (15) | (3) | (14) | (3) | |
Other plant/office closures | 0 | 0 | (1) | 0 | |
Commercial disputes | 0 | 0 | 4 | 0 | |
Other (charges) gains, net | (98) | $ (3) | (94) | $ (3) | |
Engineered Materials [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Commercial disputes | 15 | ||||
Other Activities [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Commercial disputes | 11 | ||||
Employee Severance [Member] | |||||
Restructuring and Related Activities [Abstract] | |||||
Restructuring Reserve | 15 | 15 | $ 4 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 15 | ||||
Payments for Restructuring | (3) | ||||
Restructuring Reserve, Accrual Adjustment | 1 | ||||
Restructuring Reserve, Foreign Currency Translation Gain (Loss) | 0 | ||||
Restructuring Reserve | 15 | 15 | 4 | ||
Employee Severance [Member] | Engineered Materials [Member] | |||||
Restructuring and Related Activities [Abstract] | |||||
Restructuring Reserve | 7 | 7 | 0 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 8 | ||||
Payments for Restructuring | 1 | ||||
Restructuring Reserve, Accrual Adjustment | 0 | ||||
Restructuring Reserve, Foreign Currency Translation Gain (Loss) | 0 | ||||
Restructuring Reserve | 7 | 7 | 0 | ||
Employee Severance [Member] | Acetate Tow [Member] | |||||
Restructuring and Related Activities [Abstract] | |||||
Restructuring Reserve | 1 | 1 | 2 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 1 | ||||
Payments for Restructuring | 2 | ||||
Restructuring Reserve, Accrual Adjustment | 0 | ||||
Restructuring Reserve, Foreign Currency Translation Gain (Loss) | 0 | ||||
Restructuring Reserve | 1 | 1 | 2 | ||
Employee Severance [Member] | Acetyl Chain [Member] | |||||
Restructuring and Related Activities [Abstract] | |||||
Restructuring Reserve | 2 | 2 | 2 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 1 | ||||
Payments for Restructuring | 0 | ||||
Restructuring Reserve, Accrual Adjustment | 1 | ||||
Restructuring Reserve, Foreign Currency Translation Gain (Loss) | 0 | ||||
Restructuring Reserve | 2 | 2 | 2 | ||
Employee Severance [Member] | Other Activities [Member] | |||||
Restructuring and Related Activities [Abstract] | |||||
Restructuring Reserve | 5 | 5 | 0 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 5 | ||||
Payments for Restructuring | 0 | ||||
Restructuring Reserve, Accrual Adjustment | 0 | ||||
Restructuring Reserve, Foreign Currency Translation Gain (Loss) | 0 | ||||
Restructuring Reserve | $ 5 | $ 5 | $ 0 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Tax Rate) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 12.00% | 22.00% | 12.00% | 19.00% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jan. 31, 2018 | |
Tax Credit Carryforward [Line Items] | ||
Income Tax Examination, pre-tax adjustments proposed | $ 198 | |
Income Tax Examination, Estimate of Possible Loss | $ 69 |
Leases (Details)
Leases (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Leases-Rent Expense [Abstract] | |
Operating Leases, Rent Expense, Net | $ 96 |
Leases Narrative (Details)
Leases Narrative (Details) | Jun. 30, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
Operating lease commitments that have not yet commenced | $ 0 |
Finance lease commitments that have not yet commenced | $ 0 |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Finance Lease, Renewal Term | 1 year |
Lessee, Operating Lease, Renewal Term | 1 year |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Finance Lease, Renewal Term | 30 years |
Lessee, Operating Lease, Renewal Term | 30 years |
Leases Costs (Details)
Leases Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating Lease, Cost | $ 10 | $ 20 |
Short-term Lease, Cost | 5 | 10 |
Variable Lease, Cost | 2 | 4 |
Finance Lease, Right-of-Use Asset, Amortization | 4 | 9 |
Finance Lease, Interest Expense | 5 | 10 |
Sublease Income | 0 | 0 |
Lease, Cost | $ 26 | $ 53 |
Leases Supplemental Balance she
Leases Supplemental Balance sheet information (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 209 | $ 0 |
Finance Lease, Right-of-Use Asset | 94 | |
Lease, Right-of-Use Asset | 303 | |
Operating Lease, Liability, Current | 31 | 0 |
Finance Lease, Liability, Current | 24 | |
Operating Lease, Liability, Noncurrent | 192 | $ 0 |
Finance Lease, Liability, Noncurrent | 132 | |
Lease Liability | $ 379 |
Leases Supplemental Lease Infor
Leases Supplemental Lease Information (Details) | Jun. 30, 2019 |
Leases [Abstract] | |
Operating Lease, Weighted Average Remaining Lease Term | 15 years |
Finance Lease, Weighted Average Remaining Lease Term | 7 years 1 month 6 days |
Operating Lease, Weighted Average Discount Rate, Percent | 2.70% |
Finance Lease, Weighted Average Discount Rate, Percent | 11.70% |
Leases Supplemental Cash Flow I
Leases Supplemental Cash Flow Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases - Supplemental Cash Flow Information [Abstract] | |
Operating Lease, Payments | $ 20 |
Finance Lease, Interest Payment on Liability | 10 |
Finance Lease, Principal Payments | 11 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 0 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 5 |
Leases Maturities of Lease Liab
Leases Maturities of Lease Liabilities (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Operating Lease Liabilities, Payments Due [Abstract] | ||
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 19,000,000 | |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 34,000,000 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 26,000,000 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 23,000,000 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 20,000,000 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 150,000,000 | |
Operating Leases, Future Sublease Income | 0 | $ 0 |
Lessee, Operating Lease, Liability, Payments, Due | 272,000,000 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (49,000,000) | |
Operating Lease, Liability | 223,000,000 | |
Finance Lease Liabilities, Payments, Due [Abstract] | ||
Finance Lease, Liability, Payments, Remainder of Fiscal Year | 22,000,000 | |
Finance Lease, Liability, Payments, Due Year Two | 41,000,000 | |
Finance Lease, Liability, Payments, Due Year Three | 40,000,000 | |
Finance Lease, Liability, Payments, Due Year Four | 32,000,000 | |
Finance Lease, Liability, Payments, Due Year Five | 23,000,000 | |
Finance Lease, Liability, Payments, Due after Year Five | 88,000,000 | |
Finance Lease, Future Minimum Sublease Rentals | 0 | |
Finance Lease, Liability, Payments, Due | 246,000,000 | |
Finance Lease, Liability, Undiscounted Excess Amount | (90,000,000) | |
Finance Lease, Liability | 156,000,000 | $ 167,000,000 |
Finance lease commitments that have not yet commenced | $ 0 |
Leases Future Minimum Lease Pay
Leases Future Minimum Lease Payments (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Leases, Operating [Abstract] | ||
2019 | $ 43 | |
2020 | 34 | |
2021 | 25 | |
2022 | 23 | |
2023 | 21 | |
Later years | 130 | |
Sublease income | $ 0 | 0 |
Minimum lease commitments | 276 | |
Leases, Capital [Abstract] | ||
2019 | 42 | |
2020 | 42 | |
2021 | 40 | |
2022 | 32 | |
2023 | 23 | |
Later years | 88 | |
Sublease income | 0 | |
Minimum lease commitments | 267 | |
Less amounts representing interest | (100) | |
Present value of net minimum lease obligations | $ 167 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Schedule of Interest Rate Swap Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 400 | $ 400 |
Derivative Financial Instrume_4
Derivative Financial Instruments Derivative Financial Instruments (Schedule of Net Investment Hedges) (Details) - EUR (€) € in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Foreign Currency Denominated Debt [Member] | Net Investment Hedging [Member] | ||
Derivative [Line Items] | ||
Notional Amount of Nonderivative Instruments | € 1,378 | € 1,550 |
Derivative Financial Instrume_5
Derivative Financial Instruments Derivative Financial Instruments (Schedule of Foreign Currency Forwards) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 711 | $ 1,071 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Schedule of Changes in Fair Value of Derivatives) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative [Line Items] | ||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | $ (19) | $ 6 | $ (22) | $ 4 |
Not Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Gain (Loss) Recognized in Earnings (Loss) | 3 | 21 | 0 | 17 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Gain (Loss) Recognized in Earnings (Loss) | 3 | 21 | 0 | 17 |
Cash Flow Hedging [Member] | ||||
Derivative [Line Items] | ||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | (17) | 7 | (18) | 5 |
Gain (Loss) Recognized in Earnings (Loss) | 2 | 1 | 4 | 1 |
Cash Flow Hedging [Member] | Commodity Contract [Member] | ||||
Derivative [Line Items] | ||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | (2) | 6 | 8 | 4 |
Gain (Loss) Recognized in Earnings (Loss) | 2 | 1 | 4 | 1 |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | 0 | 1 | 0 | 1 |
Gain (Loss) Recognized in Earnings (Loss) | 0 | 0 | 0 | 0 |
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | (15) | 0 | (26) | 0 |
Gain (Loss) Recognized in Earnings (Loss) | 0 | 0 | 0 | 0 |
Net Investment Hedging [Member] | ||||
Derivative [Line Items] | ||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | (19) | 70 | 20 | 35 |
Gain (Loss) Recognized in Earnings (Loss) | 0 | 0 | 0 | 0 |
Net Investment Hedging [Member] | Currency Swap [Member] | ||||
Derivative [Line Items] | ||||
Gain (Loss) Recognized in Earnings (Loss) | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | (6) | 0 | (6) | 0 |
Foreign Currency Denominated Debt [Member] | Net Investment Hedging [Member] | ||||
Derivative [Line Items] | ||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) | (13) | 70 | 26 | 35 |
Gain (Loss) Recognized in Earnings (Loss) | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Financial Instrume_7
Derivative Financial Instruments (Schedule of Offsetting Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative Assets [Abstract] | ||
Gross amount recognized | $ 11 | $ 11 |
Gross amount offset in the consolidated balance sheets | 3 | 2 |
Net amount presented in the consolidated balance sheets | 8 | 9 |
Gross amount not offset in the consolidated balance sheets | 1 | 3 |
Net amount | $ 7 | $ 6 |
Derivative Financial Instrume_8
Derivative Financial Instruments (Schedule of Offsetting Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative Liabilities [Abstract] | ||
Gross amount recognized | $ 48 | $ 20 |
Gross amount offset in the consolidated balance sheets | 3 | 2 |
Net amount presented in the consolidated balance sheets | 45 | 18 |
Gross amount not offset in the consolidated balance sheets | 1 | 3 |
Net amount | $ 44 | $ 15 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | $ (44) | $ (15) |
Derivative Asset | 7 | 6 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 8 | 9 |
Total liabilities | (45) | (18) |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 8 | 9 |
Total liabilities | (45) | (18) |
Other Noncurrent Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest Rate Cash Flow Hedge Liability at Fair Value | (36) | (10) |
Other Noncurrent Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Designated as Hedging Instrument [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest Rate Cash Flow Hedge Liability at Fair Value | 0 | 0 |
Other Noncurrent Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Designated as Hedging Instrument [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest Rate Cash Flow Hedge Liability at Fair Value | (36) | (10) |
Current Other Assets [Member] | Fair Value, Measurements, Recurring [Member] | Not Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forwards and swaps | 2 | 8 |
Current Other Assets [Member] | Fair Value, Measurements, Recurring [Member] | Not Designated as Hedging Instrument [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forwards and swaps | 0 | 0 |
Current Other Assets [Member] | Fair Value, Measurements, Recurring [Member] | Not Designated as Hedging Instrument [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forwards and swaps | 2 | 8 |
Current Other liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Not Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forwards and swaps | (2) | (7) |
Current Other liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Not Designated as Hedging Instrument [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forwards and swaps | 0 | 0 |
Current Other liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Not Designated as Hedging Instrument [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forwards and swaps | (2) | (7) |
Commodity Contract [Member] | Other Noncurrent Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | (1) | |
Commodity Contract [Member] | Other Noncurrent Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Designated as Hedging Instrument [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0 | |
Commodity Contract [Member] | Other Noncurrent Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Designated as Hedging Instrument [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | (1) | |
Commodity Contract [Member] | Current Other Assets [Member] | Fair Value, Measurements, Recurring [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 5 | 1 |
Commodity Contract [Member] | Current Other Assets [Member] | Fair Value, Measurements, Recurring [Member] | Designated as Hedging Instrument [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Commodity Contract [Member] | Current Other Assets [Member] | Fair Value, Measurements, Recurring [Member] | Designated as Hedging Instrument [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 5 | $ 1 |
Commodity Contract [Member] | Other Noncurrent Assets [Member] | Fair Value, Measurements, Recurring [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 1 | |
Commodity Contract [Member] | Other Noncurrent Assets [Member] | Fair Value, Measurements, Recurring [Member] | Designated as Hedging Instrument [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | |
Commodity Contract [Member] | Other Noncurrent Assets [Member] | Fair Value, Measurements, Recurring [Member] | Designated as Hedging Instrument [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 1 | |
Currency Swap [Member] | Net Investment Hedging [Member] | Other Noncurrent Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forwards and swaps | (6) | |
Currency Swap [Member] | Net Investment Hedging [Member] | Other Noncurrent Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Designated as Hedging Instrument [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forwards and swaps | 0 | |
Currency Swap [Member] | Net Investment Hedging [Member] | Other Noncurrent Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Designated as Hedging Instrument [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forwards and swaps | (6) | |
Currency Swap [Member] | Net Investment Hedging [Member] | Current Other liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forwards and swaps | (1) | |
Currency Swap [Member] | Net Investment Hedging [Member] | Current Other liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Designated as Hedging Instrument [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forwards and swaps | 0 | |
Currency Swap [Member] | Net Investment Hedging [Member] | Current Other liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Designated as Hedging Instrument [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forwards and swaps | $ (1) |
Fair Value Measurements (Sche_2
Fair Value Measurements (Schedule of Carrying Values and Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity Securities without Readily Determinable Fair Value, Amount | $ 170 | $ 164 |
Equity Securities, FV-NI and without Readily Determinable Fair Value | 0 | 0 |
Insurance contracts in nonqualified trusts, carrying amount | 35 | 37 |
Insurance contracts in nonqualified trusts, fair value | 35 | 37 |
Long-term debt, including current installments of long-term debt, carrying amount | 3,490 | 3,355 |
Long-term debt, including current installments of long-term debt, fair value | 3,649 | 3,371 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity Securities, FV-NI and without Readily Determinable Fair Value | 0 | 0 |
Insurance contracts in nonqualified trusts, fair value | 35 | 37 |
Long-term debt, including current installments of long-term debt, fair value | 3,493 | 3,204 |
Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity Securities, FV-NI and without Readily Determinable Fair Value | 0 | 0 |
Insurance contracts in nonqualified trusts, fair value | 0 | 0 |
Long-term debt, including current installments of long-term debt, fair value | $ 156 | $ 167 |
Commitments and Contingencies (
Commitments and Contingencies (Guarantees - Demerger and Divesture Obligations Narrative) (Details) € in Millions, $ in Millions | 6 Months Ended | 236 Months Ended | |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2019EUR (€) | |
Indemnification Agreements Hoechst [Member] | |||
Loss Contingencies [Line Items] | |||
Number of divestiture agreements | 19 | 19 | 19 |
Indemnification amount | € | € 250 | ||
Indemnification ceiling amount | € | € 750 | ||
Indemnification percentage exceeding ceiling amount | 33.33% | 33.33% | 33.33% |
Loss contingency accrual, carrying value, payments | $ | $ 90 | ||
Indemnification percentage, other | 33.33% | 33.33% | 33.33% |
Divestiture Agreements [Member] | |||
Loss Contingencies [Line Items] | |||
Term of divestiture obligations | 2037 | ||
Guarantor obligations, maximum exposure | $ | $ 116 | $ 116 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Purchase Obligations Narrative) (Details) $ in Billions | Jun. 30, 2019USD ($) |
Long-term Purchase Commitment [Line Items] | |
Unrecorded unconditional purchase obligations | $ 1.2 |
Segment Information (Schedule o
Segment Information (Schedule of Business Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | ||||||
Segment Reporting Information [Line Items] | ||||||||||
Net sales | $ 1,592 | $ 1,844 | $ 3,279 | $ 3,695 | ||||||
Other (charges) gains, net (Note 14) | (98) | (3) | (94) | (3) | ||||||
Operating profit (loss) | (186) | (358) | (506) | (701) | ||||||
Equity in net earnings (loss) of affiliates | 39 | 56 | 89 | 114 | ||||||
Depreciation and amortization | 84 | 86 | 167 | 165 | ||||||
Capital expenditures | 74 | [1] | 88 | [1] | 128 | [2] | 145 | [2] | ||
Goodwill and intangible assets, net | 1,410 | 1,410 | $ 1,367 | |||||||
Total assets | 9,506 | 9,506 | 9,313 | |||||||
Increase (decrease) in accrued capital expenditures | 9 | 9 | (16) | (20) | ||||||
Acetate Tow [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net sales | 164 | 162 | 330 | 330 | ||||||
Acetyl Chain [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net sales | [3] | 835 | 1,018 | 1,693 | 2,036 | |||||
Engineered Materials [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net sales | 593 | 664 | 1,256 | 1,329 | ||||||
Operating Segments [Member] | Acetate Tow [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net sales | 164 | 162 | 330 | 330 | ||||||
Other (charges) gains, net (Note 14) | (84) | (1) | (84) | (1) | ||||||
Operating profit (loss) | 44 | (39) | 4 | (85) | ||||||
Equity in net earnings (loss) of affiliates | 0 | 0 | 0 | 0 | ||||||
Depreciation and amortization | 11 | 13 | 21 | 23 | ||||||
Capital expenditures | 11 | 10 | 19 | 10 | ||||||
Goodwill and intangible assets, net | 153 | 153 | 153 | |||||||
Total assets | 973 | 973 | 1,032 | |||||||
Operating Segments [Member] | Acetyl Chain [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net sales | 865 | 1,049 | 1,754 | 2,100 | ||||||
Other (charges) gains, net (Note 14) | (1) | (2) | (1) | (2) | ||||||
Operating profit (loss) | (188) | (273) | (390) | (526) | ||||||
Equity in net earnings (loss) of affiliates | 1 | 2 | 2 | 3 | ||||||
Depreciation and amortization | 38 | 36 | 76 | 71 | ||||||
Capital expenditures | 35 | 49 | 61 | 83 | ||||||
Goodwill and intangible assets, net | 237 | 237 | 240 | |||||||
Total assets | 3,503 | 3,503 | 3,471 | |||||||
Operating Segments [Member] | Engineered Materials [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net sales | 593 | 664 | 1,256 | 1,329 | ||||||
Other (charges) gains, net (Note 14) | (8) | 0 | 7 | 0 | ||||||
Operating profit (loss) | (103) | (114) | (247) | (241) | ||||||
Equity in net earnings (loss) of affiliates | 36 | 53 | 82 | 107 | ||||||
Depreciation and amortization | 31 | 33 | 63 | 65 | ||||||
Capital expenditures | 21 | 26 | 37 | 47 | ||||||
Goodwill and intangible assets, net | 1,020 | 1,020 | 974 | |||||||
Total assets | 3,589 | 3,589 | 4,012 | |||||||
Corporate, Non-Segment [Member] | Other Activities [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net sales | 0 | 0 | 0 | 0 | ||||||
Other (charges) gains, net (Note 14) | (5) | 0 | (16) | 0 | ||||||
Operating profit (loss) | 61 | 68 | 127 | 151 | ||||||
Equity in net earnings (loss) of affiliates | 2 | 1 | 5 | 4 | ||||||
Depreciation and amortization | 4 | 4 | 7 | 6 | ||||||
Capital expenditures | 7 | 3 | 11 | 5 | ||||||
Goodwill and intangible assets, net | 0 | 0 | 0 | |||||||
Total assets | 1,441 | 1,441 | 798 | |||||||
Eliminations [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net sales | (30) | [4] | (31) | [4] | (61) | [5] | (64) | [5] | ||
Other (charges) gains, net (Note 14) | 0 | 0 | 0 | 0 | ||||||
Operating profit (loss) | 0 | 0 | 0 | 0 | ||||||
Equity in net earnings (loss) of affiliates | 0 | 0 | 0 | 0 | ||||||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||||||
Capital expenditures | 0 | 0 | 0 | 0 | ||||||
Goodwill and intangible assets, net | 0 | 0 | 0 | |||||||
Total assets | 0 | 0 | $ 0 | |||||||
Eliminations [Member] | Acetyl Chain [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net sales | $ 30 | $ 31 | $ 61 | $ 64 | ||||||
[1] | Includes an increase in accrued capital expenditures of $9 million and $9 million for the three months ended June 30, 2019 and 2018 , respectively. | |||||||||
[2] | Includes a decrease in accrued capital expenditures of $16 million and $20 million for the six months ended June 30, 2019 and 2018 , respectively. | |||||||||
[3] | Excludes intersegment sales of $30 million and $31 million for the three months ended June 30, 2019 and 2018 , respectively. Excludes intersegment sales of $61 million and $64 million for the six months ended June 30, 2019 and 2018 , respectively. | |||||||||
[4] | Includes intersegment sales primarily related to the Acetyl Chain. | |||||||||
[5] | Includes intersegment sales primarily related to the Acetyl Chain. |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of net sales (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||||||
Revenue, Major Customer [Line Items] | |||||||||
Net sales | $ 1,592 | $ 1,844 | $ 3,279 | $ 3,695 | |||||
Acetyl Chain [Member] | |||||||||
Revenue, Major Customer [Line Items] | |||||||||
Net sales | [1] | 835 | 1,018 | 1,693 | 2,036 | ||||
Engineered Materials [Member] | |||||||||
Revenue, Major Customer [Line Items] | |||||||||
Net sales | 593 | 664 | 1,256 | 1,329 | |||||
Acetate Tow [Member] | |||||||||
Revenue, Major Customer [Line Items] | |||||||||
Net sales | 164 | 162 | 330 | 330 | |||||
Intersegment Eliminations [Member] | |||||||||
Revenue, Major Customer [Line Items] | |||||||||
Net sales | (30) | [2] | (31) | [2] | (61) | [3] | (64) | [3] | |
Intersegment Eliminations [Member] | Acetyl Chain [Member] | |||||||||
Revenue, Major Customer [Line Items] | |||||||||
Net sales | 30 | 31 | 61 | 64 | |||||
North America [Member] | Acetyl Chain [Member] | |||||||||
Revenue, Major Customer [Line Items] | |||||||||
Net sales | 278 | 285 | 564 | 575 | |||||
North America [Member] | Engineered Materials [Member] | |||||||||
Revenue, Major Customer [Line Items] | |||||||||
Net sales | 180 | 191 | 376 | 370 | |||||
North America [Member] | Acetate Tow [Member] | |||||||||
Revenue, Major Customer [Line Items] | |||||||||
Net sales | 33 | 33 | 67 | 68 | |||||
Europe and Africa [Member] | Acetyl Chain [Member] | |||||||||
Revenue, Major Customer [Line Items] | |||||||||
Net sales | 282 | 339 | 576 | 656 | |||||
Europe and Africa [Member] | Engineered Materials [Member] | |||||||||
Revenue, Major Customer [Line Items] | |||||||||
Net sales | 269 | 331 | 571 | 668 | |||||
Europe and Africa [Member] | Acetate Tow [Member] | |||||||||
Revenue, Major Customer [Line Items] | |||||||||
Net sales | 67 | 48 | 130 | 118 | |||||
Asia Pacific [Member] | Acetyl Chain [Member] | |||||||||
Revenue, Major Customer [Line Items] | |||||||||
Net sales | 252 | 362 | 508 | 740 | |||||
Asia Pacific [Member] | Engineered Materials [Member] | |||||||||
Revenue, Major Customer [Line Items] | |||||||||
Net sales | 126 | 126 | 274 | 258 | |||||
Asia Pacific [Member] | Acetate Tow [Member] | |||||||||
Revenue, Major Customer [Line Items] | |||||||||
Net sales | 56 | 68 | 116 | 119 | |||||
South America [Member] | Acetyl Chain [Member] | |||||||||
Revenue, Major Customer [Line Items] | |||||||||
Net sales | 23 | 32 | 45 | 65 | |||||
South America [Member] | Engineered Materials [Member] | |||||||||
Revenue, Major Customer [Line Items] | |||||||||
Net sales | 18 | 16 | 35 | 33 | |||||
South America [Member] | Acetate Tow [Member] | |||||||||
Revenue, Major Customer [Line Items] | |||||||||
Net sales | $ 8 | $ 13 | $ 17 | $ 25 | |||||
[1] | Excludes intersegment sales of $30 million and $31 million for the three months ended June 30, 2019 and 2018 , respectively. Excludes intersegment sales of $61 million and $64 million for the six months ended June 30, 2019 and 2018 , respectively. | ||||||||
[2] | Includes intersegment sales primarily related to the Acetyl Chain. | ||||||||
[3] | Includes intersegment sales primarily related to the Acetyl Chain. |
Revenue Recognition Remaining P
Revenue Recognition Remaining Performance Obligations (Details) $ in Millions | Jun. 30, 2019USD ($) |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 712 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 154 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 203 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 151 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Earnings (Loss) Per Share (Sche
Earnings (Loss) Per Share (Schedule of Earnings (Loss) Per Share) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Amounts attributable to Celanese Corporation | ||||
Earnings (loss) from continuing operations | $ 210 | $ 344 | $ 548 | $ 709 |
Earnings (loss) from discontinued operations | (1) | 0 | (2) | (2) |
Net earnings (loss) | $ 209 | $ 344 | $ 546 | $ 707 |
Weighted average shares - basic | 125,289,967 | 135,589,717 | 126,409,926 | 135,752,179 |
Incremental shares attributable to equity awards | 557,927 | 719,441 | 701,120 | 747,569 |
Weighted average shares - diluted | 125,847,894 | 136,309,158 | 127,111,046 | 136,499,748 |
Earnings (Loss) Per Share (Narr
Earnings (Loss) Per Share (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 | 0 |
Consolidating Guarantor Finan_3
Consolidating Guarantor Financial Information (Schedule of Consolidating Statement of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | $ 1,592 | $ 1,844 | $ 3,279 | $ 3,695 |
Cost of sales | (1,169) | (1,323) | (2,403) | (2,659) |
Gross profit | 423 | 521 | 876 | 1,036 |
Selling, general and administrative expenses | (118) | (136) | (238) | (283) |
Amortization of intangible assets | (6) | (7) | (12) | (13) |
Research and development expenses | (17) | (18) | (33) | (36) |
Other (charges) gains, net | (98) | (3) | (94) | (3) |
Foreign exchange gain (loss), net | 1 | 3 | 6 | 2 |
Gain (loss) on disposition of businesses and assets, net | 1 | (2) | 1 | (2) |
Operating profit (loss) | 186 | 358 | 506 | 701 |
Equity in net earnings (loss) of affiliates | 39 | 56 | 89 | 114 |
Non-operating pension and other postretirement employee benefit (expense) income | 17 | 26 | 34 | 52 |
Interest expense | (29) | (32) | (60) | (65) |
Refinancing expense | 4 | 0 | 4 | 0 |
Interest income | 2 | 0 | 3 | 2 |
Dividend income - equity investments | 30 | 34 | 62 | 66 |
Other income (expense), net | (2) | 0 | (6) | 4 |
Earnings (loss) from continuing operations before tax | 239 | 442 | 624 | 874 |
Income tax (provision) benefit | (28) | (97) | (74) | (162) |
Earnings (loss) from continuing operations | 211 | 345 | 550 | 712 |
Earnings (loss) from operation of discontinued operations | (2) | 0 | (3) | (2) |
Income tax (provision) benefit from discontinued operations | 1 | 0 | 1 | 0 |
Earnings (loss) from discontinued operations | (1) | 0 | (2) | (2) |
Net earnings (loss) | 210 | 345 | 548 | 710 |
Net (earnings) loss attributable to noncontrolling interests | (1) | (1) | (2) | (3) |
Net earnings (loss) attributable to Celanese Corporation | 209 | 344 | 546 | 707 |
Write off of Deferred Debt Issuance Cost | (4) | 0 | (4) | 0 |
Parent Guarantor [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Amortization of intangible assets | 0 | 0 | 0 | 0 |
Research and development expenses | 0 | 0 | 0 | 0 |
Other (charges) gains, net | 0 | 0 | 0 | 0 |
Foreign exchange gain (loss), net | 0 | 0 | 0 | 0 |
Gain (loss) on disposition of businesses and assets, net | 0 | 0 | 0 | 0 |
Operating profit (loss) | 0 | 0 | 0 | 0 |
Equity in net earnings (loss) of affiliates | 209 | 344 | 546 | 707 |
Non-operating pension and other postretirement employee benefit (expense) income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Refinancing expense | 0 | 0 | ||
Interest income | 0 | 0 | 0 | 0 |
Dividend income - equity investments | 0 | 0 | 0 | 0 |
Other income (expense), net | 0 | 0 | 0 | 0 |
Earnings (loss) from continuing operations before tax | 209 | 344 | 546 | 707 |
Income tax (provision) benefit | 0 | 0 | 0 | 0 |
Earnings (loss) from continuing operations | 209 | 344 | 546 | 707 |
Earnings (loss) from operation of discontinued operations | 0 | 0 | 0 | 0 |
Income tax (provision) benefit from discontinued operations | 0 | 0 | 0 | 0 |
Earnings (loss) from discontinued operations | 0 | 0 | 0 | 0 |
Net earnings (loss) | 209 | 344 | 546 | 707 |
Net (earnings) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings (loss) attributable to Celanese Corporation | 209 | 344 | 546 | 707 |
Write off of Deferred Debt Issuance Cost | 0 | 0 | ||
Issuer [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Amortization of intangible assets | 0 | 0 | 0 | 0 |
Research and development expenses | 0 | 0 | 0 | 0 |
Other (charges) gains, net | 0 | 0 | 0 | 0 |
Foreign exchange gain (loss), net | 0 | 0 | 0 | 0 |
Gain (loss) on disposition of businesses and assets, net | 0 | 0 | 0 | 0 |
Operating profit (loss) | 0 | 0 | 0 | 0 |
Equity in net earnings (loss) of affiliates | 210 | 341 | 547 | 701 |
Non-operating pension and other postretirement employee benefit (expense) income | 0 | 0 | 0 | 0 |
Interest expense | (9) | (5) | (19) | (10) |
Refinancing expense | 4 | 4 | ||
Interest income | 18 | 10 | 31 | 18 |
Dividend income - equity investments | 0 | 0 | 0 | 0 |
Other income (expense), net | (4) | (1) | (3) | 0 |
Earnings (loss) from continuing operations before tax | 211 | 345 | 552 | 709 |
Income tax (provision) benefit | (2) | (1) | (6) | (2) |
Earnings (loss) from continuing operations | 209 | 344 | 546 | 707 |
Earnings (loss) from operation of discontinued operations | 0 | 0 | 0 | 0 |
Income tax (provision) benefit from discontinued operations | 0 | 0 | 0 | 0 |
Earnings (loss) from discontinued operations | 0 | 0 | 0 | 0 |
Net earnings (loss) | 209 | 344 | 546 | 707 |
Net (earnings) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings (loss) attributable to Celanese Corporation | 209 | 344 | 546 | 707 |
Write off of Deferred Debt Issuance Cost | (4) | (4) | ||
Subsidiary Guarantors [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | 586 | 586 | 1,210 | 1,168 |
Cost of sales | (443) | (457) | (901) | (905) |
Gross profit | 143 | 129 | 309 | 263 |
Selling, general and administrative expenses | (39) | (51) | (79) | (110) |
Amortization of intangible assets | (2) | (1) | (4) | (2) |
Research and development expenses | (7) | (7) | (13) | (15) |
Other (charges) gains, net | (5) | 0 | (5) | 0 |
Foreign exchange gain (loss), net | 0 | 0 | 0 | 0 |
Gain (loss) on disposition of businesses and assets, net | (2) | (3) | (4) | (5) |
Operating profit (loss) | 88 | 67 | 204 | 131 |
Equity in net earnings (loss) of affiliates | 122 | 312 | 339 | 586 |
Non-operating pension and other postretirement employee benefit (expense) income | 16 | 24 | 31 | 47 |
Interest expense | (35) | (31) | (66) | (60) |
Refinancing expense | 0 | 0 | ||
Interest income | 11 | 2 | 13 | 4 |
Dividend income - equity investments | 0 | 0 | 0 | 0 |
Other income (expense), net | 0 | 0 | 0 | 0 |
Earnings (loss) from continuing operations before tax | 202 | 374 | 521 | 708 |
Income tax (provision) benefit | (23) | (69) | (30) | (105) |
Earnings (loss) from continuing operations | 179 | 305 | 491 | 603 |
Earnings (loss) from operation of discontinued operations | (2) | (1) | (3) | (1) |
Income tax (provision) benefit from discontinued operations | 1 | 0 | 1 | 0 |
Earnings (loss) from discontinued operations | (1) | (1) | (2) | (1) |
Net earnings (loss) | 178 | 304 | 489 | 602 |
Net (earnings) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings (loss) attributable to Celanese Corporation | 178 | 304 | 489 | 602 |
Write off of Deferred Debt Issuance Cost | 0 | 0 | ||
Non-Guarantors [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | 1,298 | 1,566 | 2,671 | 3,138 |
Cost of sales | (1,020) | (1,171) | (2,097) | (2,365) |
Gross profit | 278 | 395 | 574 | 773 |
Selling, general and administrative expenses | (79) | (85) | (159) | (173) |
Amortization of intangible assets | (4) | (6) | (8) | (11) |
Research and development expenses | (10) | (11) | (20) | (21) |
Other (charges) gains, net | (93) | (3) | (89) | (3) |
Foreign exchange gain (loss), net | 1 | 3 | 6 | 2 |
Gain (loss) on disposition of businesses and assets, net | 3 | 1 | 5 | 3 |
Operating profit (loss) | 96 | 294 | 309 | 570 |
Equity in net earnings (loss) of affiliates | 34 | 53 | 77 | 106 |
Non-operating pension and other postretirement employee benefit (expense) income | 1 | 2 | 3 | 5 |
Interest expense | (13) | (8) | (20) | (17) |
Refinancing expense | 0 | 0 | ||
Interest income | 1 | 2 | 4 | 4 |
Dividend income - equity investments | 30 | 32 | 62 | 64 |
Other income (expense), net | 2 | 1 | (3) | 4 |
Earnings (loss) from continuing operations before tax | 151 | 376 | 432 | 736 |
Income tax (provision) benefit | (3) | (28) | (39) | (55) |
Earnings (loss) from continuing operations | 148 | 348 | 393 | 681 |
Earnings (loss) from operation of discontinued operations | 0 | 1 | 0 | (1) |
Income tax (provision) benefit from discontinued operations | 0 | 0 | 0 | 0 |
Earnings (loss) from discontinued operations | 0 | 1 | 0 | (1) |
Net earnings (loss) | 148 | 349 | 393 | 680 |
Net (earnings) loss attributable to noncontrolling interests | (1) | (1) | (2) | (3) |
Net earnings (loss) attributable to Celanese Corporation | 147 | 348 | 391 | 677 |
Write off of Deferred Debt Issuance Cost | 0 | 0 | ||
Eliminations [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | (292) | (308) | (602) | (611) |
Cost of sales | 294 | 305 | 595 | 611 |
Gross profit | 2 | (3) | (7) | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Amortization of intangible assets | 0 | 0 | 0 | 0 |
Research and development expenses | 0 | 0 | 0 | 0 |
Other (charges) gains, net | 0 | 0 | 0 | 0 |
Foreign exchange gain (loss), net | 0 | 0 | 0 | 0 |
Gain (loss) on disposition of businesses and assets, net | 0 | 0 | 0 | 0 |
Operating profit (loss) | 2 | (3) | (7) | 0 |
Equity in net earnings (loss) of affiliates | (536) | (994) | (1,420) | (1,986) |
Non-operating pension and other postretirement employee benefit (expense) income | 0 | 0 | 0 | 0 |
Interest expense | 28 | 12 | 45 | 22 |
Refinancing expense | 0 | 0 | ||
Interest income | (28) | (14) | (45) | (24) |
Dividend income - equity investments | 0 | 2 | 0 | 2 |
Other income (expense), net | 0 | 0 | 0 | 0 |
Earnings (loss) from continuing operations before tax | (534) | (997) | (1,427) | (1,986) |
Income tax (provision) benefit | 0 | 1 | 1 | 0 |
Earnings (loss) from continuing operations | (534) | (996) | (1,426) | (1,986) |
Earnings (loss) from operation of discontinued operations | 0 | 0 | 0 | 0 |
Income tax (provision) benefit from discontinued operations | 0 | 0 | 0 | 0 |
Earnings (loss) from discontinued operations | 0 | 0 | 0 | 0 |
Net earnings (loss) | (534) | (996) | (1,426) | (1,986) |
Net (earnings) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings (loss) attributable to Celanese Corporation | (534) | $ (996) | (1,426) | $ (1,986) |
Write off of Deferred Debt Issuance Cost | $ 0 | $ 0 |
Consolidating Guarantor Finan_4
Consolidating Guarantor Financial Information (Schedule of Consolidating Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net earnings (loss) | $ 210 | $ 345 | $ 548 | $ 710 |
Unrealized gain (loss) on marketable securities | 0 | 0 | ||
Foreign currency translation gain (loss) | (11) | (66) | (4) | (17) |
Gain (loss) on cash flow hedges | (13) | 6 | (16) | 5 |
Pension and postretirement benefits gain (loss) | 0 | 0 | 0 | 1 |
Total other comprehensive income (loss), net of tax | (24) | (60) | (20) | (11) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 186 | 285 | 528 | 699 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | (1) | (1) | (2) | (3) |
Comprehensive income (loss) attributable to Celanese Corporation | 185 | 284 | 526 | 696 |
Parent Guarantor [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net earnings (loss) | 209 | 344 | 546 | 707 |
Unrealized gain (loss) on marketable securities | 0 | 0 | ||
Foreign currency translation gain (loss) | (11) | (66) | (4) | (17) |
Gain (loss) on cash flow hedges | (13) | 6 | (16) | 5 |
Pension and postretirement benefits gain (loss) | 1 | |||
Total other comprehensive income (loss), net of tax | (24) | (60) | (20) | (11) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 185 | 284 | 526 | 696 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Celanese Corporation | 185 | 284 | 526 | 696 |
Issuer [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net earnings (loss) | 209 | 344 | 546 | 707 |
Unrealized gain (loss) on marketable securities | 0 | 0 | ||
Foreign currency translation gain (loss) | (11) | (66) | (4) | (17) |
Gain (loss) on cash flow hedges | (13) | 6 | (16) | 5 |
Pension and postretirement benefits gain (loss) | 1 | |||
Total other comprehensive income (loss), net of tax | (24) | (60) | (20) | (11) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 185 | 284 | 526 | 696 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Celanese Corporation | 185 | 284 | 526 | 696 |
Subsidiary Guarantors [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net earnings (loss) | 178 | 304 | 489 | 602 |
Unrealized gain (loss) on marketable securities | 5 | 5 | ||
Foreign currency translation gain (loss) | 2 | (109) | (16) | (46) |
Gain (loss) on cash flow hedges | (3) | 5 | 3 | 4 |
Pension and postretirement benefits gain (loss) | 1 | |||
Total other comprehensive income (loss), net of tax | (1) | (99) | (13) | (36) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 177 | 205 | 476 | 566 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Celanese Corporation | 177 | 205 | 476 | 566 |
Non-Guarantors [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net earnings (loss) | 148 | 349 | 393 | 680 |
Unrealized gain (loss) on marketable securities | 13 | 13 | ||
Foreign currency translation gain (loss) | 4 | (132) | (20) | (58) |
Gain (loss) on cash flow hedges | (3) | 6 | 5 | 5 |
Pension and postretirement benefits gain (loss) | 1 | |||
Total other comprehensive income (loss), net of tax | 1 | (113) | (15) | (39) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 149 | 236 | 378 | 641 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | (1) | (1) | (2) | (3) |
Comprehensive income (loss) attributable to Celanese Corporation | 148 | 235 | 376 | 638 |
Eliminations [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net earnings (loss) | (534) | (996) | (1,426) | (1,986) |
Unrealized gain (loss) on marketable securities | (18) | (18) | ||
Foreign currency translation gain (loss) | 5 | 307 | 40 | 121 |
Gain (loss) on cash flow hedges | 19 | (17) | 8 | (14) |
Pension and postretirement benefits gain (loss) | (3) | |||
Total other comprehensive income (loss), net of tax | 24 | 272 | 48 | 86 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (510) | (724) | (1,378) | (1,900) |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Celanese Corporation | $ (510) | $ (724) | $ (1,378) | $ (1,900) |
Consolidating Guarantor Finan_5
Consolidating Guarantor Financial Information (Schedule of Consolidating Balance Sheet) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Current Assets | |||||
Cash and cash equivalents | $ 491 | $ 439 | $ 708 | $ 576 | |
Trade receivables - third party and affiliates | 971 | 1,017 | |||
Non-trade receivables, net | 332 | 301 | |||
Inventories, net | 1,011 | 1,046 | |||
Marketable securities, at fair value | 27 | 31 | |||
Other assets | 44 | 40 | |||
Total current assets | 2,876 | 2,874 | |||
Investments in affiliates | 959 | 979 | |||
Property, Plant and Equipment, Net | 3,642 | 3,719 | |||
Operating Lease, Right-of-Use Asset | 209 | 0 | |||
Deferred income taxes | 90 | 84 | |||
Other assets | 320 | 290 | |||
Goodwill | 1,083 | [1] | 1,057 | ||
Intangible Assets, Net (Excluding Goodwill) | 327 | 310 | |||
Total assets | 9,506 | 9,313 | |||
Current Liabilities | |||||
Short-term borrowings and current installments of long-term debt - third party and affiliates | 319 | 561 | |||
Trade payables - third party and affiliates | 764 | 819 | |||
Other liabilities | 302 | 343 | |||
Income taxes payable | 23 | 56 | |||
Total current liabilities | 1,408 | 1,779 | |||
Noncurrent Liabilities | |||||
Long-term debt, net of unamortized deferred financing costs | 3,444 | 2,970 | |||
Deferred income taxes | 265 | 255 | |||
Uncertain tax positions | 171 | 158 | |||
Benefit obligations | 545 | 564 | |||
Operating Lease, Liability, Noncurrent | 192 | 0 | |||
Other liabilities | 227 | 208 | |||
Total noncurrent liabilities | 4,844 | 4,155 | |||
Total Celanese Corporation stockholders' equity | 2,864 | 2,984 | 3,380 | ||
Noncontrolling interests | 390 | 395 | |||
Total equity | 3,254 | 3,379 | 3,787 | ||
Total liabilities and equity | 9,506 | 9,313 | |||
Parent Guarantor [Member] | |||||
Current Assets | |||||
Cash and cash equivalents | 0 | 0 | 2 | 0 | |
Trade receivables - third party and affiliates | 0 | 0 | |||
Non-trade receivables, net | 40 | 40 | |||
Inventories, net | 0 | 0 | |||
Marketable securities, at fair value | 0 | 0 | |||
Other assets | 0 | 0 | |||
Total current assets | 40 | 40 | |||
Investments in affiliates | 3,760 | 3,503 | |||
Property, Plant and Equipment, Net | 0 | 0 | |||
Operating Lease, Right-of-Use Asset | 0 | ||||
Deferred income taxes | 0 | 0 | |||
Other assets | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Intangible Assets, Net (Excluding Goodwill) | 0 | 0 | |||
Total assets | 3,800 | 3,543 | |||
Current Liabilities | |||||
Short-term borrowings and current installments of long-term debt - third party and affiliates | 910 | 544 | |||
Trade payables - third party and affiliates | 25 | 13 | |||
Other liabilities | 0 | 1 | |||
Income taxes payable | 0 | 0 | |||
Total current liabilities | 935 | 558 | |||
Noncurrent Liabilities | |||||
Long-term debt, net of unamortized deferred financing costs | 0 | 0 | |||
Deferred income taxes | 0 | 0 | |||
Uncertain tax positions | 1 | 0 | |||
Benefit obligations | 0 | 0 | |||
Operating Lease, Liability, Noncurrent | 0 | ||||
Other liabilities | 0 | 1 | |||
Total noncurrent liabilities | 1 | 1 | |||
Total Celanese Corporation stockholders' equity | 2,864 | 2,984 | |||
Noncontrolling interests | 0 | 0 | |||
Total equity | 2,864 | 2,984 | |||
Total liabilities and equity | 3,800 | 3,543 | |||
Issuer [Member] | |||||
Current Assets | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Trade receivables - third party and affiliates | 0 | 0 | |||
Non-trade receivables, net | 1,025 | 551 | |||
Inventories, net | 0 | 0 | |||
Marketable securities, at fair value | 0 | 0 | |||
Other assets | 28 | 24 | |||
Total current assets | 1,053 | 575 | |||
Investments in affiliates | 4,937 | 4,820 | |||
Property, Plant and Equipment, Net | 0 | 0 | |||
Operating Lease, Right-of-Use Asset | 0 | ||||
Deferred income taxes | 0 | 0 | |||
Other assets | 1,658 | 1,658 | |||
Goodwill | 0 | 0 | |||
Intangible Assets, Net (Excluding Goodwill) | 0 | 0 | |||
Total assets | 7,648 | 7,053 | |||
Current Liabilities | |||||
Short-term borrowings and current installments of long-term debt - third party and affiliates | 197 | 333 | |||
Trade payables - third party and affiliates | 1 | 1 | |||
Other liabilities | 41 | 87 | |||
Income taxes payable | 0 | 0 | |||
Total current liabilities | 239 | 421 | |||
Noncurrent Liabilities | |||||
Long-term debt, net of unamortized deferred financing costs | 3,590 | 3,104 | |||
Deferred income taxes | 15 | 15 | |||
Uncertain tax positions | 2 | 0 | |||
Benefit obligations | 0 | 0 | |||
Operating Lease, Liability, Noncurrent | 0 | ||||
Other liabilities | 42 | 10 | |||
Total noncurrent liabilities | 3,649 | 3,129 | |||
Total Celanese Corporation stockholders' equity | 3,760 | 3,503 | |||
Noncontrolling interests | 0 | 0 | |||
Total equity | 3,760 | 3,503 | |||
Total liabilities and equity | 7,648 | 7,053 | |||
Subsidiary Guarantors [Member] | |||||
Current Assets | |||||
Cash and cash equivalents | 51 | 30 | 93 | 230 | |
Trade receivables - third party and affiliates | 100 | 96 | |||
Non-trade receivables, net | 1,631 | 797 | |||
Inventories, net | 327 | 329 | |||
Marketable securities, at fair value | 27 | 31 | |||
Other assets | 23 | 10 | |||
Total current assets | 2,159 | 1,293 | |||
Investments in affiliates | 4,126 | 4,678 | |||
Property, Plant and Equipment, Net | 1,349 | 1,289 | |||
Operating Lease, Right-of-Use Asset | 55 | ||||
Deferred income taxes | 0 | 0 | |||
Other assets | 176 | 142 | |||
Goodwill | 399 | 399 | |||
Intangible Assets, Net (Excluding Goodwill) | 129 | 132 | |||
Total assets | 8,393 | 7,933 | |||
Current Liabilities | |||||
Short-term borrowings and current installments of long-term debt - third party and affiliates | 819 | 465 | |||
Trade payables - third party and affiliates | 270 | 342 | |||
Other liabilities | 151 | 267 | |||
Income taxes payable | 500 | 475 | |||
Total current liabilities | 1,740 | 1,549 | |||
Noncurrent Liabilities | |||||
Long-term debt, net of unamortized deferred financing costs | 1,678 | 1,679 | |||
Deferred income taxes | 85 | 85 | |||
Uncertain tax positions | 5 | 6 | |||
Benefit obligations | 242 | 250 | |||
Operating Lease, Liability, Noncurrent | 44 | ||||
Other liabilities | 98 | 99 | |||
Total noncurrent liabilities | 2,152 | 2,119 | |||
Total Celanese Corporation stockholders' equity | 4,501 | 4,265 | |||
Noncontrolling interests | 0 | 0 | |||
Total equity | 4,501 | 4,265 | |||
Total liabilities and equity | 8,393 | 7,933 | |||
Non-Guarantors [Member] | |||||
Current Assets | |||||
Cash and cash equivalents | 440 | 409 | 613 | 346 | |
Trade receivables - third party and affiliates | 991 | 1,040 | |||
Non-trade receivables, net | 611 | 697 | |||
Inventories, net | 739 | 765 | |||
Marketable securities, at fair value | 0 | 0 | |||
Other assets | 39 | 37 | |||
Total current assets | 2,820 | 2,948 | |||
Investments in affiliates | 832 | 855 | |||
Property, Plant and Equipment, Net | 2,293 | 2,430 | |||
Operating Lease, Right-of-Use Asset | 154 | ||||
Deferred income taxes | 92 | 86 | |||
Other assets | 452 | 461 | |||
Goodwill | 684 | 658 | |||
Intangible Assets, Net (Excluding Goodwill) | 198 | 178 | |||
Total assets | 7,525 | 7,616 | |||
Current Liabilities | |||||
Short-term borrowings and current installments of long-term debt - third party and affiliates | 752 | 258 | |||
Trade payables - third party and affiliates | 588 | 583 | |||
Other liabilities | 268 | 258 | |||
Income taxes payable | 28 | 88 | |||
Total current liabilities | 1,636 | 1,187 | |||
Noncurrent Liabilities | |||||
Long-term debt, net of unamortized deferred financing costs | 114 | 127 | |||
Deferred income taxes | 167 | 157 | |||
Uncertain tax positions | 163 | 152 | |||
Benefit obligations | 303 | 314 | |||
Operating Lease, Liability, Noncurrent | 148 | ||||
Other liabilities | 125 | 138 | |||
Total noncurrent liabilities | 1,020 | 888 | |||
Total Celanese Corporation stockholders' equity | 4,479 | 5,146 | |||
Noncontrolling interests | 390 | 395 | |||
Total equity | 4,869 | 5,541 | |||
Total liabilities and equity | 7,525 | 7,616 | |||
Eliminations [Member] | |||||
Current Assets | |||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | |
Trade receivables - third party and affiliates | (120) | (119) | |||
Non-trade receivables, net | (2,975) | (1,784) | |||
Inventories, net | (55) | (48) | |||
Marketable securities, at fair value | 0 | 0 | |||
Other assets | (46) | (31) | |||
Total current assets | (3,196) | (1,982) | |||
Investments in affiliates | (12,696) | (12,877) | |||
Property, Plant and Equipment, Net | 0 | 0 | |||
Operating Lease, Right-of-Use Asset | 0 | ||||
Deferred income taxes | (2) | (2) | |||
Other assets | (1,966) | (1,971) | |||
Goodwill | 0 | 0 | |||
Intangible Assets, Net (Excluding Goodwill) | 0 | 0 | |||
Total assets | (17,860) | (16,832) | |||
Current Liabilities | |||||
Short-term borrowings and current installments of long-term debt - third party and affiliates | (2,359) | (1,039) | |||
Trade payables - third party and affiliates | (120) | (120) | |||
Other liabilities | (158) | (270) | |||
Income taxes payable | (505) | (507) | |||
Total current liabilities | (3,142) | (1,936) | |||
Noncurrent Liabilities | |||||
Long-term debt, net of unamortized deferred financing costs | (1,938) | (1,940) | |||
Deferred income taxes | (2) | (2) | |||
Uncertain tax positions | 0 | 0 | |||
Benefit obligations | 0 | 0 | |||
Operating Lease, Liability, Noncurrent | 0 | ||||
Other liabilities | (38) | (40) | |||
Total noncurrent liabilities | (1,978) | (1,982) | |||
Total Celanese Corporation stockholders' equity | (12,740) | (12,914) | |||
Noncontrolling interests | 0 | 0 | |||
Total equity | (12,740) | (12,914) | |||
Total liabilities and equity | $ (17,860) | $ (16,832) | |||
[1] | There were $0 million of accumulated impairment losses as of June 30, 2019 . |
Consolidating Guarantor Finan_6
Consolidating Guarantor Financial Information (Schedule of Consolidating Statement of Cash Flows) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | $ 731 | $ 728 |
Investing Activities | ||
Capital expenditures on property, plant and equipment | (144) | (165) |
Acquisitions, net of cash acquired | (91) | (144) |
Proceeds from sale of businesses and assets, net | 0 | 9 |
Return of capital from subsidiary | 0 | 0 |
Contributions to subsidiary | 0 | |
Intercompany loan receipts (disbursements) | 0 | 0 |
Other, net | (8) | (31) |
Net cash provided by (used in) investing activities | (243) | (331) |
Financing Activities | ||
Net change in short-term borrowings with maturities of 3 months or less | 105 | 40 |
Proceeds from short-term borrowings | 0 | 36 |
Repayments of short-term borrowings | (12) | (39) |
Proceeds from long-term debt | 499 | 0 |
Repayments of long-term debt | (348) | (43) |
Purchases of treasury stock, including related fees | (488) | (100) |
Dividends to parent | 0 | 0 |
Contributions from parent | 0 | |
Proceeds from Stock Options Exercised | 0 | 0 |
Common stock dividends | (148) | (136) |
Return of capital to parent | 0 | 0 |
(Distributions to) contributions from noncontrolling interests | (7) | (8) |
Other, net | (38) | (6) |
Net cash provided by (used in) financing activities | (437) | (256) |
Exchange rate effects on cash and cash equivalents | 1 | (9) |
Net increase (decrease) in cash and cash equivalents | 52 | 132 |
Cash and cash equivalents as of beginning of period | 439 | 576 |
Cash and cash equivalents as of end of period | 491 | 708 |
Parent Guarantor [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 636 | 238 |
Investing Activities | ||
Capital expenditures on property, plant and equipment | 0 | 0 |
Acquisitions, net of cash acquired | 0 | 0 |
Proceeds from sale of businesses and assets, net | 0 | |
Return of capital from subsidiary | 0 | 0 |
Contributions to subsidiary | 0 | |
Intercompany loan receipts (disbursements) | 0 | 0 |
Other, net | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 |
Financing Activities | ||
Net change in short-term borrowings with maturities of 3 months or less | 0 | 0 |
Proceeds from short-term borrowings | 0 | 0 |
Repayments of short-term borrowings | 0 | 0 |
Proceeds from long-term debt | 0 | 0 |
Repayments of long-term debt | 0 | 0 |
Purchases of treasury stock, including related fees | (488) | (100) |
Dividends to parent | 0 | 0 |
Contributions from parent | 0 | |
Common stock dividends | (148) | (136) |
Return of capital to parent | 0 | 0 |
(Distributions to) contributions from noncontrolling interests | 0 | 0 |
Other, net | 0 | 0 |
Net cash provided by (used in) financing activities | (636) | (236) |
Exchange rate effects on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 2 |
Cash and cash equivalents as of beginning of period | 0 | 0 |
Cash and cash equivalents as of end of period | 0 | 2 |
Issuer [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (31) | 432 |
Investing Activities | ||
Capital expenditures on property, plant and equipment | 0 | 0 |
Acquisitions, net of cash acquired | 0 | 0 |
Proceeds from sale of businesses and assets, net | 0 | |
Return of capital from subsidiary | 0 | 0 |
Contributions to subsidiary | 0 | |
Intercompany loan receipts (disbursements) | 0 | (272) |
Other, net | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | (272) |
Financing Activities | ||
Net change in short-term borrowings with maturities of 3 months or less | 149 | 90 |
Proceeds from short-term borrowings | 0 | 0 |
Repayments of short-term borrowings | 0 | 0 |
Proceeds from long-term debt | 499 | 0 |
Repayments of long-term debt | (335) | (12) |
Purchases of treasury stock, including related fees | 0 | 0 |
Dividends to parent | (272) | (238) |
Contributions from parent | 0 | |
Common stock dividends | 0 | 0 |
Return of capital to parent | 0 | 0 |
(Distributions to) contributions from noncontrolling interests | 0 | 0 |
Other, net | (10) | 0 |
Net cash provided by (used in) financing activities | 31 | (160) |
Exchange rate effects on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents as of beginning of period | 0 | 0 |
Cash and cash equivalents as of end of period | 0 | 0 |
Subsidiary Guarantors [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 1,052 | 115 |
Investing Activities | ||
Capital expenditures on property, plant and equipment | (83) | (109) |
Acquisitions, net of cash acquired | (31) | (144) |
Proceeds from sale of businesses and assets, net | 0 | |
Return of capital from subsidiary | 7 | 218 |
Contributions to subsidiary | (16) | |
Intercompany loan receipts (disbursements) | (653) | (10) |
Other, net | 2 | (7) |
Net cash provided by (used in) investing activities | (758) | (68) |
Financing Activities | ||
Net change in short-term borrowings with maturities of 3 months or less | 3 | 11 |
Proceeds from short-term borrowings | 0 | 0 |
Repayments of short-term borrowings | 0 | 0 |
Proceeds from long-term debt | 0 | 272 |
Repayments of long-term debt | (1) | (13) |
Purchases of treasury stock, including related fees | 0 | 0 |
Dividends to parent | (251) | (449) |
Contributions from parent | 0 | |
Common stock dividends | 0 | 0 |
Return of capital to parent | 0 | 0 |
(Distributions to) contributions from noncontrolling interests | 0 | 0 |
Other, net | (24) | (5) |
Net cash provided by (used in) financing activities | (273) | (184) |
Exchange rate effects on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 21 | (137) |
Cash and cash equivalents as of beginning of period | 30 | 230 |
Cash and cash equivalents as of end of period | 51 | 93 |
Non-Guarantors [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 635 | 630 |
Investing Activities | ||
Capital expenditures on property, plant and equipment | (61) | (56) |
Acquisitions, net of cash acquired | (60) | 0 |
Proceeds from sale of businesses and assets, net | 9 | |
Return of capital from subsidiary | 0 | 0 |
Contributions to subsidiary | 0 | |
Intercompany loan receipts (disbursements) | 0 | 0 |
Other, net | (10) | (24) |
Net cash provided by (used in) investing activities | (131) | (71) |
Financing Activities | ||
Net change in short-term borrowings with maturities of 3 months or less | (4) | (51) |
Proceeds from short-term borrowings | 610 | 36 |
Repayments of short-term borrowings | (12) | (39) |
Proceeds from long-term debt | 0 | 0 |
Repayments of long-term debt | (12) | (18) |
Purchases of treasury stock, including related fees | 0 | 0 |
Dividends to parent | (1,038) | 0 |
Contributions from parent | 16 | |
Common stock dividends | 0 | 0 |
Return of capital to parent | (7) | (218) |
(Distributions to) contributions from noncontrolling interests | (7) | (8) |
Other, net | (4) | (1) |
Net cash provided by (used in) financing activities | (474) | (283) |
Exchange rate effects on cash and cash equivalents | 1 | (9) |
Net increase (decrease) in cash and cash equivalents | 31 | 267 |
Cash and cash equivalents as of beginning of period | 409 | 346 |
Cash and cash equivalents as of end of period | 440 | 613 |
Eliminations [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (1,561) | (687) |
Investing Activities | ||
Capital expenditures on property, plant and equipment | 0 | 0 |
Acquisitions, net of cash acquired | 0 | 0 |
Proceeds from sale of businesses and assets, net | 0 | |
Return of capital from subsidiary | (7) | (218) |
Contributions to subsidiary | 16 | |
Intercompany loan receipts (disbursements) | 653 | 282 |
Other, net | 0 | 0 |
Net cash provided by (used in) investing activities | 646 | 80 |
Financing Activities | ||
Net change in short-term borrowings with maturities of 3 months or less | (43) | (10) |
Proceeds from short-term borrowings | (610) | 0 |
Repayments of short-term borrowings | 0 | 0 |
Proceeds from long-term debt | 0 | (272) |
Repayments of long-term debt | 0 | 0 |
Purchases of treasury stock, including related fees | 0 | 0 |
Dividends to parent | 1,561 | 687 |
Contributions from parent | (16) | |
Common stock dividends | 0 | 0 |
Return of capital to parent | 7 | 218 |
(Distributions to) contributions from noncontrolling interests | 0 | 0 |
Other, net | 0 | 0 |
Net cash provided by (used in) financing activities | 915 | 607 |
Exchange rate effects on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents as of beginning of period | 0 | 0 |
Cash and cash equivalents as of end of period | $ 0 | $ 0 |
Consolidating Guarantor Finan_7
Consolidating Guarantor Financial Information (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Consolidating Guarantor Financial Information (Narrative) [Abstract] | |
Equity Method Investments Ownership Percentage of Subsidiary | 100.00% |