EX-99.2 4 q120198-kex992.htm EXHIBIT 99.2 Exhibit
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Exhibit 99.2

Non-US GAAP Financial Measures and Supplemental Information
April 22, 2019
In this document, the terms the "Company," "we" and "our" refer to Celanese Corporation and its subsidiaries on a consolidated basis.
Purpose
The purpose of this document is to provide information of interest to investors, analysts and other parties including supplemental financial information and reconciliations and other information concerning our use of non-US GAAP financial measures. This document is updated quarterly.
Presentation
This document presents the Company's three business segments, Engineered Materials, Acetate Tow and Acetyl Chain.
Use of Non-US GAAP Financial Measures
From time to time, management may publicly disclose certain numerical "non-GAAP financial measures" in the course of our earnings releases, financial presentations, earnings conference calls, investor and analyst meetings and otherwise. For these purposes, the Securities and Exchange Commission ("SEC") defines a "non-GAAP financial measure" as a numerical measure of historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that effectively exclude amounts, included in the most directly comparable measure calculated and presented in accordance with US GAAP, and vice versa for measures that include amounts, or are subject to adjustments that effectively include amounts, that are excluded from the most directly comparable US GAAP measure so calculated and presented. For these purposes, "GAAP" refers to generally accepted accounting principles in the United States.
Non-GAAP financial measures disclosed by management are provided as additional information to investors, analysts and other parties because the Company believes them to be important supplemental measures for assessing our financial and operating results and as a means to evaluate our financial condition and period-to-period comparisons. These non-GAAP financial measures should be viewed as supplemental to, and should not be considered in isolation or as alternatives to, net earnings (loss), operating profit (loss), operating margin, cash flow from operating activities (together with cash flow from investing and financing activities), earnings per share or any other US GAAP financial measure. These non-GAAP financial measures should be considered within the context of our complete audited and unaudited financial results for the given period, which are available on the Financial Information/Documents page of our website, investors.celanese.com. The definition and method of calculation of the non-GAAP financial measures used herein may be different from other companies' methods for calculating measures with the same or similar titles. Investors, analysts and other parties should understand how another company calculates such non-GAAP financial measures before comparing the other company's non-GAAP financial measures to any of our own. These non-GAAP financial measures may not be indicative of the historical operating results of the Company nor are they intended to be predictive or projections of future results.
Pursuant to the requirements of SEC Regulation G, whenever we refer to a non-GAAP financial measure, we will also present in this document, in the presentation itself or on a Form 8-K in connection with the presentation on the Financial Information/Non-GAAP Financial Measures page of our website, investors.celanese.com, to the extent practicable, the most directly comparable financial measure calculated and presented in accordance with GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable GAAP financial measure.
This document includes definitions and reconciliations of non-GAAP financial measures used from time to time by the Company.
Specific Measures Used
This document provides information about the following non-GAAP measures: adjusted EBIT, adjusted EBIT margin, operating EBITDA, operating EBITDA margin, operating profit (loss) attributable to Celanese Corporation, adjusted earnings per share, net debt, free cash flow and return on invested capital (adjusted). The most directly comparable financial measure presented in accordance with US GAAP in our consolidated financial statements for adjusted EBIT and operating EBITDA is net earnings (loss) attributable to Celanese Corporation; for adjusted EBIT margin and operating EBITDA margin is operating margin; for operating profit (loss) attributable to Celanese Corporation is operating profit (loss); for adjusted earnings per share is earnings (loss) from continuing operations attributable to Celanese Corporation per common share-diluted; for net debt is total debt; for free cash flow is net cash provided by (used in) operations; and for return on invested capital (adjusted) is net earnings (loss) attributable to Celanese Corporation divided by the sum of the average of beginning and end of the year short- and long-term debt and Celanese Corporation stockholders' equity.

1

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Definitions
Adjusted EBIT is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense and taxes, and further adjusted for Certain Items (refer to Table 8). We believe that adjusted EBIT provides transparent and useful information to management, investors, analysts and other parties in evaluating and assessing our primary operating results from period-to-period after removing the impact of unusual, non-operational or restructuring-related activities that affect comparability. Our management recognizes that adjusted EBIT has inherent limitations because of the excluded items. Adjusted EBIT is one of the measures management uses for planning and budgeting, monitoring and evaluating financial and operating results and as a performance metric in the Company's incentive compensation plan. We do not provide reconciliations for adjusted EBIT on a forward-looking basis (including those contained in this document) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of Certain Items, such as mark-to-market pension gains and losses, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. Adjusted EBIT margin is defined by the Company as adjusted EBIT divided by net sales. Adjusted EBIT margin has the same uses and limitations as Adjusted EBIT.
Adjusted EBIT by business segment may also be referred to by management as segment income. Adjusted EBIT margin by business segment may also be referred to by management as segment income margin.
Operating EBITDA is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense, taxes and depreciation and amortization, and further adjusted for Certain Items, which Certain Items include accelerated depreciation and amortization expense. Operating EBITDA is equal to adjusted EBIT plus depreciation and amortization. We believe that Operating EBITDA provides transparent and useful information to investors, analysts and other parties in evaluating our operating performance relative to our peer companies. Operating EBITDA margin is defined by the Company as Operating EBITDA divided by net sales. Operating EBITDA margin has the same uses and limitations as Operating EBITDA.
Operating profit (loss) attributable to Celanese Corporation is defined by the Company as operating profit (loss), less earnings (loss) attributable to noncontrolling interests ("NCI"). We believe that operating profit (loss) attributable to Celanese Corporation provides transparent and useful information to management, investors, analysts and other parties in evaluating our core operational performance. Operating margin attributable to Celanese Corporation is defined by the Company as operating profit (loss) attributable to Celanese Corporation divided by net sales. Operating margin attributable to Celanese Corporation has the same uses and limitations as Operating profit (loss) attributable to Celanese Corporation.
Adjusted earnings per share is a performance measure used by the Company and is defined by the Company as earnings (loss) from continuing operations attributable to Celanese Corporation, adjusted for income tax (provision) benefit, Certain Items, and refinancing and related expenses, divided by the number of basic common shares and dilutive restricted stock units and stock options calculated using the treasury method. We believe that adjusted earnings per share provides transparent and useful information to management, investors, analysts and other parties in evaluating and assessing our primary operating results from period-to-period after removing the impact of the above stated items that affect comparability and as a performance metric in the Company's incentive compensation plan. We do not provide reconciliations for adjusted earnings per share on a forward-looking basis (including those contained in this document) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of Certain Items, such as mark-to-market pension gains and losses, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information.
Note: The income tax expense (benefit) on Certain Items ("Non-GAAP adjustments") is determined using the applicable rates in the taxing jurisdictions in which the Non-GAAP adjustments occurred and includes both current and deferred income tax expense (benefit). The income tax rate used for adjusted earnings per share approximates the midpoint in a range of forecasted tax rates for the year. This range may include certain partial or full-year forecasted tax opportunities and related costs, where applicable, and specifically excludes changes in uncertain tax positions, discrete recognition of GAAP items on a quarterly basis, other pre-tax items adjusted out of our GAAP earnings for adjusted earnings per share purposes and changes in management's assessments regarding the ability to realize deferred tax assets for GAAP. In determining the adjusted earnings per share tax rate, we reflect the impact of foreign tax credits when utilized, or expected to be utilized, absent discrete events impacting the timing of foreign tax credit utilization. We analyze this rate quarterly and adjust it if there is a material change in the range of forecasted tax rates; an updated forecast would not necessarily result in a change to our tax rate used for adjusted earnings per share. The adjusted tax rate is an estimate and may differ from the actual tax rate used for GAAP reporting in any given reporting period. Table 3a summarizes the reconciliation of our estimated GAAP effective tax rate to the adjusted tax rate. The estimated GAAP rate excludes discrete recognition of GAAP items due to our inability to forecast such items. As part of the year-end reconciliation, we will update the reconciliation of the GAAP effective tax rate to the adjusted tax rate for actual results.

2

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Free cash flow is a liquidity measure used by the Company and is defined by the Company as net cash provided by (used in) operations, less capital expenditures on property, plant and equipment, and adjusted for capital contributions from or distributions to Mitsui & Co., Ltd. ("Mitsui") related to our methanol joint venture, Fairway Methanol LLC ("Fairway"). We believe that free cash flow provides useful information to management, investors, analysts and other parties in evaluating the Company's liquidity and credit quality assessment because it provides an indication of the long-term cash generating ability of our business. Although we use free cash flow as a measure to assess the liquidity generated by our business, the use of free cash flow has important limitations, including that free cash flow does not reflect the cash requirements necessary to service our indebtedness, lease obligations, unconditional purchase obligations or pension and postretirement funding obligations.
Net debt is defined by the Company as total debt less cash and cash equivalents. We believe that net debt provides useful information to management, investors, analysts and other parties in evaluating changes to the Company's capital structure and credit quality assessment.
Return on invested capital (adjusted) is defined by the Company as adjusted EBIT, tax effected using the adjusted tax rate, divided by the sum of the average of beginning and end of the year short- and long-term debt and Celanese Corporation stockholders' equity. We believe that return on invested capital (adjusted) provides useful information to management, investors, analysts and other parties in order to assess our income generation from the point of view of our stockholders and creditors who provide us with capital in the form of equity and debt and whether capital invested in the Company yields competitive returns.
Supplemental Information
Supplemental Information we believe to be of interest to investors, analysts and other parties includes the following:
Net sales for each of our business segments and the percentage increase or decrease in net sales attributable to price, volume, currency and other factors for each of our business segments.
Cash dividends received from our equity investments.
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 NCI. Beginning in 2014, this includes Fairway for which the Company's ownership percentage is 50%. Amounts referred to as "attributable to Celanese Corporation" are net of any applicable NCI.
Results Unaudited
The results in this document, together with the adjustments made to present the results on a comparable basis, have not been audited and are based on internal financial data furnished to management. Quarterly results should not be taken as an indication of the results of operations to be reported for any subsequent period or for the full fiscal year.

3

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Table 1
Adjusted EBIT and Operating EBITDA - Reconciliation of Non-GAAP Measures - Unaudited
 
Q1 '19
 
2018
 
Q4 '18
 
Q3 '18
 
Q2 '18
 
Q1 '18
 
(In $ millions)
Net earnings (loss) attributable to Celanese Corporation
337

 
1,207

 
99

 
401

 
344

 
363

(Earnings) loss from discontinued operations
1

 
5

 
(3
)
 
6

 

 
2

Interest income
(1
)
 
(6
)
 
(2
)
 
(2
)
 

 
(2
)
Interest expense
31

 
125

 
30

 
30

 
32

 
33

Refinancing expense

 
1

 
1

 

 

 

Income tax provision (benefit)
46

 
292

 
76

 
54

 
97

 
65

Certain Items attributable to Celanese Corporation (Table 8)
7

 
228

 
192

 
5

 
18

 
13

Adjusted EBIT
421

 
1,852

 
393

 
494

 
491

 
474

Depreciation and amortization expense(1)
81

 
316

 
78

 
77

 
82

 
79

Operating EBITDA
502

 
2,168

 
471

 
571

 
573

 
553

            
 
Q1 '19
 
2018
 
Q4 '18
 
Q3 '18
 
Q2 '18
 
Q1 '18
 
(In $ millions)
Engineered Materials
1

 
1

 

 

 
1

 

Acetate Tow

 
19

 
5

 
11

 
3

 

Acetyl Chain
1

 
7

 
5

 
2

 

 

Other Activities(2)

 

 

 

 

 

Accelerated depreciation and amortization expense
2

 
27

 
10

 
13

 
4

 

Depreciation and amortization expense(1)
81

 
316

 
78

 
77

 
82

 
79

Total depreciation and amortization expense
83

 
343

 
88

 
90

 
86

 
79

______________________________
(1) 
Excludes accelerated depreciation and amortization expense as detailed in the table above, which amounts are included in Certain Items above.
(2) 
Other Activities includes corporate Selling, general and administrative ("SG&A") expenses, the results of captive insurance companies and certain components of net periodic benefit cost (interest cost, expected return on plan assets and net actuarial gains and losses).

4

Table 2 - Supplemental Segment Data and Reconciliation of Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures - Unaudited
 
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Q1 '19
 
2018
 
Q4 '18
 
Q3 '18
 
Q2 '18
 
Q1 '18
 
(In $ millions, except percentages)
Operating Profit (Loss) / Operating Margin
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Engineered Materials
144

 
21.7
%
 
460

 
17.7
%
 
95

 
15.3
%
 
124

 
19.3
%
 
114

 
17.2
%
 
127

 
19.1
%
Acetate Tow
40

 
24.1
%
 
130

 
20.0
%
 
19

 
11.8
%
 
26

 
16.5
%
 
39

 
24.1
%
 
46

 
27.4
%
Acetyl Chain(1)
202

 
22.7
%
 
1,024

 
25.3
%
 
211

 
22.5
%
 
287

 
28.5
%
 
273

 
26.0
%
 
253

 
24.1
%
Other Activities(2)
(66
)
 
 
 
(280
)
 
 
 
(66
)
 
 
 
(63
)
 
 
 
(68
)
 
 
 
(83
)
 
 
Total
320

 
19.0
%

1,334

 
18.6
%
 
259

 
15.3
%
 
374

 
21.1
%
 
358

 
19.4
%
 
343

 
18.5
%
Less: Net Earnings (Loss) Attributable to NCI(1)
1

 
 
 
6

 
 
 
2

 
 
 
1

 
 
 
1

 
 
 
2

 
 
Operating Profit (Loss) Attributable to Celanese Corporation
319

 
18.9
%
 
1,328

 
18.6
%
 
257

 
15.2
%
 
373


21.1
%
 
357

 
19.4
%
 
341

 
18.4
%
Operating Profit (Loss) / Operating Margin Attributable to Celanese Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Engineered Materials
144

 
21.7
%
 
460

 
17.7
%
 
95

 
15.3
%
 
124

 
19.3
%
 
114

 
17.2
%
 
127

 
19.1
%
Acetate Tow
40

 
24.1
%
 
130

 
20.0
%
 
19

 
11.8
%
 
26

 
16.5
%
 
39

 
24.1
%
 
46

 
27.4
%
Acetyl Chain(1)
201

 
22.6
%
 
1,018

 
25.2
%
 
209

 
22.3
%
 
286

 
28.4
%
 
272

 
25.9
%
 
251

 
23.9
%
Other Activities(2)
(66
)
 
 
 
(280
)
 


 
(66
)
 
 
 
(63
)
 
 
 
(68
)
 
 
 
(83
)
 
 
Total
319

 
18.9
%
 
1,328

 
18.6
%
 
257

 
15.2
%
 
373

 
21.1
%
 
357

 
19.4
%
 
341

 
18.4
%
Equity Earnings and Dividend Income, Other Income (Expense) Attributable to Celanese Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Engineered Materials
46

 
 
 
219

(3) 
 
49

 
 
 
62

 
 
 
54

 
 
 
54

 
 
Acetate Tow
32

 
 
 
116

 
 
 
25

 
 
 
26

 
 
 
33

 
 
 
32

 
 
Acetyl Chain
1

 
 
 
8

 
 
 
1

 
 
 
2

 
 
 
3

 
 
 
2

 
 
Other Activities(2)
(1
)
 
 
 
15

 
 
 
8

 
 
 
1

 
 
 

 
 
 
6

 
 
Total
78

 
 
 
358

 
 
 
83

 
 
 
91

 
 
 
90

 
 
 
94

 
 
Non-Operating Pension and Other Post-Retirement Employee Benefit (Expense) Income Attributable to Celanese Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Engineered Materials

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
Acetate Tow

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
Acetyl Chain

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
Other Activities(2)
17

 
 
 
(62
)
 
 
 
(139
)
 
 
 
25

 
 
 
26

 
 
 
26

 
 
Total
17

 
 
 
(62
)
 
 
 
(139
)
 
 
 
25

 
 
 
26

 
 
 
26

 
 
Certain Items Attributable to Celanese Corporation (Table 8)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Engineered Materials
(7
)
 
 
 
15

 
 
 
6

 
 
 
1

 
 
 
7

 
 
 
1

 
 
Acetate Tow

 
 
 
27

 
 
 
9

 
 
 
13

 
 
 
5

 
 
 

 
 
Acetyl Chain
1

 
 
 
(4
)
 
 
 
5

 
 
 
(11
)
 
 
 
2

 
 
 

 
 
Other Activities(2)
13

 
 
 
190

 
 
 
172

 
 
 
2

 
 
 
4

 
 
 
12

 
 
Total
7

 
 
 
228

 
 
 
192

 
 
 
5

 
 
 
18

 
 
 
13

 
 
Adjusted EBIT / Adjusted EBIT Margin
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Engineered Materials
183

 
27.6
%
 
694

 
26.8
%
 
150

 
24.1
%
 
187

 
29.1
%
 
175

 
26.4
%
 
182

 
27.4
%
Acetate Tow
72

 
43.4
%
 
273

 
42.1
%
 
53

 
32.9
%
 
65

 
41.1
%
 
77

 
47.5
%
 
78

 
46.4
%
Acetyl Chain
203

 
22.8
%
 
1,022

 
25.3
%
 
215

 
23.0
%
 
277

 
27.5
%
 
277

 
26.4
%
 
253

 
24.1
%
Other Activities(2)
(37
)
 
 
 
(137
)
 
 
 
(25
)
 


 
(35
)
 
 
 
(38
)
 
 
 
(39
)
 
 
Total
421

 
25.0
%
 
1,852

 
25.9
%
 
393

 
23.3
%
 
494

 
27.9
%
 
491

 
26.6
%
 
474

 
25.6
%
___________________________
(1) 
Net earnings (loss) attributable to NCI is included within the Acetyl Chain segment.
(2) 
Other Activities includes corporate SG&A expenses, the results of captive insurance companies and certain components of net periodic benefit cost (interest cost, expected return on plan assets and net actuarial gains and losses).
(3) 
Includes $218 million of Equity in net earnings (loss) of affiliates and $1 million of Other income.

5

Table 2 - Supplemental Segment Data and Reconciliation of Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures - Unaudited (cont.)
 
celaneseimagea04.jpg

 
Q1 '19
 
2018
 
Q4 '18
 
Q3 '18
 
Q2 '18
 
Q1 '18
 
(In $ millions, except percentages)
Depreciation and Amortization Expense(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Engineered Materials
31

 
 
 
125

 
 
 
30

 
 
 
31

 
 
 
32

 
 
 
32

 
 
Acetate Tow
10

 
 
 
39

 
 
 
9

 
 
 
10

 
 
 
10

 
 
 
10

 
 
Acetyl Chain
37

 
 
 
141

 
 
 
36

 
 
 
34

 
 
 
36

 
 
 
35

 
 
Other Activities(2) 
3

 
 
 
11

 
 
 
3

 
 
 
2

 
 
 
4

 
 
 
2

 
 
Total
81

 
 
 
316

 
 
 
78

 
 
 
77

 
 
 
82

 
 
 
79

 
 
Operating EBITDA / Operating EBITDA Margin
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Engineered Materials
214

 
32.3
%
 
819

 
31.6
%
 
180

 
28.9
%
 
218

 
34.0
%
 
207

 
31.2
%
 
214

 
32.2
%
Acetate Tow
82

 
49.4
%
 
312

 
48.1
%
 
62

 
38.5
%
 
75

 
47.5
%
 
87

 
53.7
%
 
88

 
52.4
%
Acetyl Chain
240

 
27.0
%
 
1,163

 
28.8
%
 
251

 
26.8
%
 
311

 
30.9
%
 
313

 
29.8
%
 
288

 
27.4
%
Other Activities(2)
(34
)
 
 
 
(126
)
 
 
 
(22
)
 
 
 
(33
)
 
 
 
(34
)
 
 
 
(37
)
 
 
Total
502

 
29.8
%
 
2,168

 
30.3
%
 
471

 
27.9
%
 
571

 
32.2
%
 
573

 
31.1
%
 
553

 
29.9
%
___________________________
(1) 
Excludes accelerated depreciation and amortization expense, which amounts are included in Certain Items above. See Table 1 for details.
(2) 
Other Activities includes corporate SG&A expenses, the results of captive insurance companies and certain components of net periodic benefit cost (interest cost, expected return on plan assets and net actuarial gains and losses).

6

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Table 3
Adjusted Earnings (Loss) per Share - Reconciliation of a Non-GAAP Measure - Unaudited
 
Q1 '19
 
2018
 
Q4 '18
 
Q3 '18
 
Q2 '18
 
Q1 '18
 
 
 
per share
 
 
 
per share
 
 
 
per share
 
 
 
per share
 
 
 
per share
 
 
 
per share
 
(In $ millions, except per share data)
Earnings (loss) from continuing operations attributable to Celanese Corporation
338

 
2.64

 
1,212

 
8.95

 
96

 
0.73

 
407

 
3.00

 
344

 
2.52

 
365

 
2.68

Income tax provision (benefit)
46

 
 
 
292

 
 
 
76

 
 
 
54

 
 
 
97

 
 
 
65

 
 
Earnings (loss) from continuing operations before tax
384

 
 
 
1,504

 
 
 
172

 
 
 
461

 
 
 
441

 
 
 
430

 
 
Certain Items attributable to Celanese Corporation (Table 8)
7

 
 
 
228

 
 
 
192

 
 
 
5

 
 
 
18

 
 
 
13

 
 
Refinancing and related expenses

 
 
 
1

 
 
 
1

 
 
 

 
 
 

 
 
 

 
 
Adjusted earnings (loss) from continuing operations before tax
391

 
 
 
1,733

 
 
 
365

 
 
 
466

 
 
 
459

 
 
 
443

 
 
Income tax (provision) benefit on adjusted earnings(1)
(55
)
 
 
 
(243
)
 
 
 
(51
)
 
 
 
(65
)
 
 
 
(64
)
 
 
 
(62
)
 
 
Adjusted earnings (loss) from continuing operations(2)
336

 
2.62

 
1,490

 
11.00

 
314

 
2.38

 
401

 
2.96

 
395

 
2.90

 
381

 
2.79

 
Diluted shares (in millions)(3)
Weighted average shares outstanding
127.5

 
 
 
134.3

 
 
 
131.2

 
 
 
134.5

 
 
 
135.6

 
 
 
135.9

 
 
Incremental shares attributable to equity awards
0.7

 
 
 
1.1

 
 
 
0.9

 
 
 
1.0

 
 
 
0.7

 
 
 
0.5

 
 
Total diluted shares
128.2

 
 
 
135.4

 
 
 
132.1

 
 
 
135.5

 
 
 
136.3

 
 
 
136.4

 
 
______________________________
(1) 
Calculated using adjusted effective tax rates (Table 3a) as follows:
 
Q1 '19
 
2018
 
Q4 '18
 
Q3 '18
 
Q2 '18
 
Q1 '18
 
(In percentages)
Adjusted effective tax rate
14
 
 
 
14
 
 
 
14
 
 
 
14
 
 
 
14
 
 
 
14
 
 
(2) 
Excludes the immediate recognition of actuarial gains and losses and the impact of actual vs. expected plan asset returns.
 
 
Actual Plan Asset Returns
 
Expected Plan Asset Returns
 
 
(In percentages)
2018
 
(3.9
)
 
6.7

(3) 
Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.

7

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Table 3a
Adjusted Tax Rate - Reconciliation of a Non-GAAP Measure - Unaudited
 
Estimated
 
Actual
 
2019
 
2018
 
(In percentages)
US GAAP annual effective tax rate
14

 
19

Discrete quarterly recognition of GAAP items(1)
1

 

Tax impact of other charges and adjustments(2)
1

 

Utilization of foreign tax credits
(2
)
 

Changes in valuation allowances, excluding impact of other charges and adjustments(3)
1

 
(5
)
Other(4)
(1
)
 

Adjusted tax rate
14

 
14

______________________________
Note: As part of the year-end reconciliation, we will update the reconciliation of the GAAP effective tax rate for actual results.
(1) 
Such as changes in tax laws (including US tax reform), deferred taxes on outside basis differences, changes in uncertain tax positions and prior year audit adjustments.
(2) 
Reflects the tax impact on pre-tax adjustments presented in Certain Items (Table 8), which are excluded from pre-tax income for adjusted earnings per share purposes.
(3) 
Reflects changes in valuation allowances related to changes in judgment regarding the realizability of deferred tax assets or current year operations, excluding other charges and adjustments.
(4) 
Tax impacts related to full-year forecasted tax opportunities and related costs.

8

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Table 4
Net Sales by Segment - Unaudited
 
Q1 '19
 
2018
 
Q4 '18
 
Q3 '18
 
Q2 '18
 
Q1 '18
 
(In $ millions)
Engineered Materials
663

 
2,593

 
622

 
642

 
664

 
665

Acetate Tow
166

 
649

 
161

 
158

 
162

 
168

Acetyl Chain
889

 
4,042

 
936

 
1,006

 
1,049

 
1,051

Other Activities(1)

 

 

 

 

 

Intersegment eliminations(2)
(31
)
 
(129
)
 
(30
)
 
(35
)
 
(31
)
 
(33
)
Net sales
1,687

 
7,155

 
1,689

 
1,771

 
1,844

 
1,851

___________________________
(1) 
Other Activities includes corporate SG&A expenses, the results of captive insurance companies and certain components of net periodic benefit cost (interest cost, expected return on plan assets and net actuarial gains and losses).
(2) 
Includes intersegment sales primarily related to the Acetyl Chain.

9

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Table 4a
Factors Affecting Segment Net Sales Sequentially - Unaudited
Three Months Ended March 31, 2019 Compared to Three Months Ended December 31, 2018
 
Volume
 
Price
 
Currency
 
Other
 
Total
 
 
(In percentages)
 
Engineered Materials
5
 
2

 
 
 
7

(1) 
Acetate Tow
1
 
2

 
 
 
3

 
Acetyl Chain
5
 
(10
)
 
 
 
(5
)
 
 
 
 
 
 
 
 
 
 
 
 
Total Company
5
 
(5
)
 
 
 

 
Three Months Ended December 31, 2018 Compared to Three Months Ended September 30, 2018
 
Volume
 
Price
 
Currency
 
Other
 
Total
 
 
(In percentages)
 
Engineered Materials
(4
)
 
2

 
(1
)
 
 
(3
)
 
Acetate Tow
2

 
(1
)
 

 
 
1

 
Acetyl Chain
(3
)
 
(4
)
 
(1
)
 
1
 
(7
)
 
 
 
 
 
 
 
 
 
 
 
 
Total Company
(3
)
 
(2
)
 
(1
)
 
1
 
(5
)
 
Three Months Ended September 30, 2018 Compared to Three Months Ended June 30, 2018
 
Volume
 
Price
 
Currency
 
Other
 
Total
 
 
(In percentages)
 
Engineered Materials
(2
)
 
 
(1
)
 
 
(3
)
 
Acetate Tow
(2
)
 
 

 
 
(2
)
 
Acetyl Chain
(4
)
 
2
 
(2
)
 
 
(4
)
 
 
 
 
 
 
 
 
 
 
 
 
Total Company
(3
)
 
1
 
(2
)
 
 
(4
)
 
Three Months Ended June 30, 2018 Compared to Three Months Ended March 31, 2018
 
Volume
 
Price
 
Currency
 
Other
 
Total
 
 
(In percentages)
 
Engineered Materials
(1
)
 
3
 
(2
)
 

 

 
Acetate Tow
(3
)
 
 
(1
)
 

 
(4
)
 
Acetyl Chain
(2
)
 
4
 
(1
)
 
(1
)
 

 
 
 
 
 
 
 
 
 
 
 
 
Total Company
(2
)
 
3
 
(1
)
 

 

 


 

Three Months Ended March 31, 2018 Compared to Three Months Ended December 31, 2017
 
Volume
 
Price
 
Currency
 
Other
 
Total
 
 
(In percentages)
 
Engineered Materials
10
 
3
 
2
 

 
15
(2) 
Acetate Tow
8
 
 
 

 
8
 
Acetyl Chain
8
 
9
 
3
 
(2
)
 
18
 
 
 
 
 
 
 
 
 
 
 
 
Total Company
9
 
6
 
2
 
(1
)
 
16
 
_________________________
(1) 
2019 includes the effect of the acquisition of Next Polymers Ltd.
(2) 
2018 includes the effect of the acquisition of Omni Plastics, L.L.C.




10

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Table 4b
Factors Affecting Segment Net Sales Year Over Year - Unaudited
Three Months Ended March 31, 2019 Compared to Three Months Ended March 31, 2018
 
Volume
 
Price
 
Currency
 
Other
 
Total
 
(In percentages)
Engineered Materials
(3
)
 
7

 
(4
)
 
 

Acetate Tow
(1
)
 

 

 
 
(1
)
Acetyl Chain
(4
)
 
(8
)
 
(3
)
 
 
(15
)
 
 
 
 
 
 
 
 
 
 
Total Company
(3
)
 
(2
)
 
(4
)
 
 
(9
)
Three Months Ended December 31, 2018 Compared to Three Months Ended December 31, 2017
 
Volume
 
Price
 
Currency
 
Other
 
Total
 
(In percentages)
Engineered Materials
2

 
7

 
(2
)
 

 
7
Acetate Tow
5

 
(2
)
 

 

 
3
Acetyl Chain
(2
)
 
10

 
(2
)
 
(1
)
 
5
 
 
 
 
 
 
 
 
 

Total Company

 
8

 
(2
)
 

 
6
Three Months Ended September 30, 2018 Compared to Three Months Ended September 30, 2017
 
Volume
 
Price
 
Currency
 
Other
 
Total
 
(In percentages)
Engineered Materials
7

 
6

 
(1
)
 

 
12
Acetate Tow
5

 
(3
)
 

 
(1
)
 
1
Acetyl Chain
(3
)
 
22

 

 
(2
)
 
17
 
 
 
 
 
 
 
 
 
 
Total Company
1

 
14

 
(1
)
 
(1
)
 
13
Three Months Ended June 30, 2018 Compared to Three Months Ended June 30, 2017
 
Volume
 
Price
 
Currency
 
Other
 
Total
 
(In percentages)
Engineered Materials
11
 
7

 
4
 

 
22

Acetate Tow
1
 
(2
)
 
 

 
(1
)
Acetyl Chain
6
 
19

 
5
 
(3
)
 
27

 
 
 
 
 
 
 
 
 
 
Total Company
7
 
13

 
4
 
(2
)
 
22



 


Three Months Ended March 31, 2018 Compared to Three Months Ended March 31, 2017
 
Volume
 
Price
 
Currency
 
Other
 
Total
 
(In percentages)
Engineered Materials
19

 
3

 
7
 

 
29

Acetate Tow
(9
)
 
(4
)
 
1
 

 
(12
)
Acetyl Chain
3

 
25

 
7
 
(3
)
 
32

 
 
 
 
 
 
 
 
 
 
Total Company
7

 
14

 
6
 
(1
)
 
26














11

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Table 4c
Factors Affecting Segment Net Sales Year Over Year - Unaudited
Year Ended December 31, 2018 Compared to Year Ended December 31, 2017
 
Volume
 
Price
 
Currency
 
Other
 
Total
 
(In percentages)
Engineered Materials
9
 
6

 
2
 

 
17

Acetate Tow
 
(3
)
 
 

 
(3
)
Acetyl Chain
1
 
19

 
2
 
(2
)
 
20

 
 
 
 
 
 
 
 
 
 
Total Company
4
 
12

 
2
 
(1
)
 
17





12

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Table 5
Free Cash Flow - Reconciliation of a Non-GAAP Measure - Unaudited
 
Q1 '19
 
2018
 
Q4 '18
 
Q3 '18
 
Q2 '18
 
Q1 '18
 
(In $ millions, except percentages)
Net cash provided by (used in) investing activities
(177
)
 
(507
)
 
(98
)
 
(78
)
 
(96
)
 
(235
)
Net cash provided by (used in) financing activities
(130
)
 
(1,165
)
 
(526
)
 
(383
)
 
(254
)
 
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by (used in) operating activities
307

 
1,558

 
363

 
467

 
585

 
143

Capital expenditures on property, plant and equipment
(79
)
 
(337
)
 
(93
)
 
(79
)
 
(79
)
 
(86
)
Capital (distributions to) contributions from NCI
(4
)
 
(23
)
 
(9
)
 
(6
)
 
(6
)
 
(2
)
Free cash flow(1)(2)
224

 
1,198

 
261

 
382

 
500

 
55

 
 
 
 
 
 
 
 
 
 
 
 
Net sales
1,687

 
7,155

 
1,689

 
1,771

 
1,844

 
1,851

 
 
 
 
 
 
 
 
 
 
 
 
Free cash flow as % of Net sales
13.3
%
 
16.7
%
 
15.5
%
 
21.6
%
 
27.1
%
 
3.0
%
______________________________
(1) 
Free cash flow is a liquidity measure used by the Company and is defined by the Company as net cash provided by (used in) operating activities, less capital expenditures on property, plant and equipment, and adjusted for capital contributions from or distributions to Mitsui & Co., Ltd. ("Mitsui") related to our joint venture, Fairway Methanol LLC ("Fairway").
(2) 
Excludes required debt service and finance lease payments of $24 million and $63 million for the years ending December 31, 2019 and 2018, respectively.


13

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Table 6
Cash Dividends Received - Unaudited
 
Q1 '19
 
2018
 
Q4 '18
 
Q3 '18
 
Q2 '18
 
Q1 '18
 
(In $ millions)
Dividends from equity method investments
70

 
221

 
62

 
44

 
39

 
76

Dividends from equity investments without readily determinable fair values
32

 
117

 
25

 
26

 
34

 
32

Total
102

 
338

 
87

 
70

 
73

 
108

Table 7
Net Debt - Reconciliation of a Non-GAAP Measure - Unaudited
 
Q1 '19
 
2018
 
Q4 '18
 
Q3 '18
 
Q2 '18
 
Q1 '18
 
(In $ millions)
Short-term borrowings and current installments of long-term debt - third party and affiliates
743

 
561

 
561

 
229

 
366

 
425

Long-term debt, net of unamortized deferred financing costs
2,933

 
2,970

 
2,970

 
3,196

 
3,228

 
3,343

Total debt
3,676

 
3,531

 
3,531

 
3,425

 
3,594

 
3,768

Cash and cash equivalents
(441
)
 
(439
)
 
(439
)
 
(703
)
 
(708
)
 
(490
)
Net debt
3,235

 
3,092

 
3,092

 
2,722

 
2,886

 
3,278


14

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Table 8
Certain Items - Unaudited
The following Certain Items attributable to Celanese Corporation are included in Net earnings (loss) and are adjustments to non-GAAP measures:
 
Q1 '19
 
2018
 
Q4 '18
 
Q3 '18
 
Q2 '18
 
Q1 '18
 
Income Statement Classification
 
(In $ millions)
 
 
Plant/office closures
3

 
19

 
16

 

 
3

 

 
Cost of sales / Other charges (gains), net
Mergers and acquisitions
3

 
33

 
6

 
3

 
11

 
13

 
Cost of sales / SG&A
Actuarial (gain) loss on pension and postretirement plans

 
166

 
166

 

 

 

 
Cost of sales / SG&A / Non-operating pension and other postretirement employee benefit expense (income)
Restructuring
(1
)
 
9

 
4

 
2

 
3

 

 
SG&A / Other charges (gains), net / Non-operating pension and other postretirement employee benefit expense (income)
Other
2

 
1

 

 

 
1

 

 
Cost of sales / SG&A / Other charges (gains), net
Certain Items attributable to Celanese Corporation
7

 
228

 
192

 
5

 
18

 
13

 
 



15

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Table 9
Return on Invested Capital (Adjusted) - Presentation of a Non-GAAP Measure - Unaudited
 
 
 
 
 
2018
 
 
 
 
 
(In $ millions, except percentages)
Net earnings (loss) attributable to Celanese Corporation
 
 
 
 
1,207

 
 
 
 
 
 
Adjusted EBIT (Table 1)
 
 
 
 
1,852

Adjusted effective tax rate (Table 3a)
 
 
 
 
14
%
Adjusted EBIT tax effected
 
 
 
 
1,593

 
 
 
 
 
 
 
2018
 
2017
 
Average
 
(In $ millions, except percentages)
Short-term borrowings and current installments of long-term debt - third parties and affiliates
561

 
326

 
444

Long-term debt, net of unamortized deferred financing costs
2,970

 
3,315

 
3,143

Celanese Corporation stockholders' equity
2,984

 
2,887

 
2,936

Invested capital
 
 
 
 
6,523

 
 
 
 
 
 
Return on invested capital (adjusted)
 
 
 
 
24.4
%
 
 
 
 
 
 
Net earnings (loss) attributable to Celanese Corporation as a percentage of invested capital
 
 
 
 
18.5
%

16