| | |
Public Offering
Price(1) |
| |
Underwriting
Discount |
| |
Proceeds, Before
Expenses, to Issuer |
| |||||||||
Per 2026 note
|
| | | | 100.000% | | | | | | 0.450% | | | | | | 99.550% | | |
Total
|
| | | € | 1,000,000,000 | | | | | € | 4,500,000 | | | | | € | 995,500,000 | | |
Per 2029 note
|
| | | | 99.996% | | | | | | 0.525% | | | | | | 99.471% | | |
Total
|
| | | € | 499,980,000 | | | | | € | 2,625,000 | | | | | € | 497,355,000 | | |
Combined Total for the Notes
|
| | | € | 1,499,980,000 | | | | | € | 7,125,000 | | | | | € | 1,492,855,000 | | |
|
Joint Book-Running Managers
|
| ||||||||||||
|
BofA Securities
|
| | Citigroup | | |
Deutsche Bank
|
| | HSBC | | |
J.P. Morgan
|
|
| MUFG | | |
SMBC Nikko
|
| |
UniCredit
|
| |
US Bancorp
|
|
|
Morgan Stanley
|
| |
PNC Capital Markets LLC
|
| ||||||
| Goldman Sachs & Co. LLC | | | Santander | | | Standard Chartered Bank | | |
TD Securities
|
|
| | |
Page
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| | | | S-7 | | | |
| | | | S-18 | | | |
| | | | S-19 | | | |
| | | | S-32 | | | |
| | | | S-33 | | | |
| | | | S-59 | | | |
| | | | S-62 | | | |
| | | | S-69 | | | |
| | | | S-76 | | | |
| | | | S-77 | | | |
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| | |
Historical
Celanese |
| |
Historical
M&M Business as Reclassified (Note 3) |
| |
Acquisition
Accounting Adjustments |
| |
Note
|
| |
Other
Accounting Adjustments |
| |
Note
|
| |
Pro Forma
Combined |
| |||||||||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Assets
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 605 | | | | | $ | 80 | | | | | $ | (10,995) | | | | | | (4A) | | | | | $ | 10,927 | | | | | | (5A) | | | | | $ | 617 | | |
Trade receivables – third party and
affiliates |
| | | | 1,390 | | | | | | 577 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 1,967 | | |
Non-trade receivables, net
|
| | | | 523 | | | | | | — | | | | | | 33 | | | | | | (4J) | | | | | | — | | | | | | | | | | | | 556 | | |
Inventories
|
| | | | 1,549 | | | | | | 785 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 2,334 | | |
Marketable securities
|
| | | | 9 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 9 | | |
Other assets
|
| | | | 124 | | | | | | 75 | | | | | | — | | | | | | | | | | | | (30) | | | | | | (5C) | | | | | | 169 | | |
Total current assets
|
| | | | 4,200 | | | | | | 1,517 | | | | | | (10,962) | | | | | | | | | | | | 10,897 | | | | | | | | | | | | 5,652 | | |
Investments in affiliates
|
| | | | 847 | | | | | | 56 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 903 | | |
Property, plant and equipment, net
|
| | | | 4,188 | | | | | | 997 | | | | | | 403 | | | | | | (4C) | | | | | | — | | | | | | | | | | | | 5,588 | | |
Operating lease right-of-use assets
|
| | | | 267 | | | | | | 42 | | | | | | 160 | | | | | | (4I) | | | | | | — | | | | | | | | | | | | 469 | | |
Deferred income taxes
|
| | | | 244 | | | | | | 19 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 263 | | |
Other assets
|
| | | | 569 | | | | | | 2 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 571 | | |
Goodwill
|
| | | | 1,396 | | | | | | 2,093 | | | | | | (2,093) | | | | | | (4G) | | | | | | — | | | | | | | | | | | | 7,398 | | |
| | | | | | | | | | | | | | | | | 6,002 | | | | | | (4F) | | | | | | | | | | | | | | | | | | | | |
Intangible assets, net
|
| | | | 715 | | | | | | 1,812 | | | | | | 2,088 | | | | | | (4C) | | | | | | — | | | | | | | | | | | | 4,615 | | |
Total assets
|
| | | $ | 12,426 | | | | | $ | 6,538 | | | | | $ | (4,402) | | | | | | | | | | | $ | 10,897 | | | | | | | | | | | $ | 25,459 | | |
LIABILITIES AND EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Short-term borrowings and current
installments of long-term debt – third party and affiliates |
| | | $ | 860 | | | | | | — | | | | | | — | | | | | | | | | | | $ | 500 | | | | | | (5A) | | | | | $ | 1,360 | | |
Trade payables – third party and affiliates
|
| | | | 1,169 | | | | | | 531 | | | | | | 44 | | | | | | (4B) | | | | | | — | | | | | | | | | | | | 1,744 | | |
Other liabilities
|
| | | | 419 | | | | | | 106 | | | | | | 1 | | | | | | (4K) | | | | | | — | | | | | | | | | | | | 556 | | |
| | | | | | | | | | | | | | | | | 30 | | | | | | (4I) | | | | | | | | | | | | | | | | | | | | |
Income taxes payable
|
| | | | 106 | | | | | | 79 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 185 | | |
Total current liabilities
|
| | | | 2,554 | | | | | | 716 | | | | | | 75 | | | | | | | | | | | | 500 | | | | | | | | | | | | 3,845 | | |
Long-term debt, net of unamortized deferred financing costs
|
| | | | 3,132 | | | | | | — | | | | | | — | | | | | | | | | | | | 10,427 | | | | | | (5A) | | | | | | 13,559 | | |
Deferred income taxes
|
| | | | 563 | | | | | | 413 | | | | | | 573 | | | | | | (4H) | | | | | | — | | | | | | | | | | | | 1,549 | | |
Uncertain tax positions
|
| | | | 296 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 296 | | |
Benefit obligations
|
| | | | 543 | | | | | | — | | | | | | 33 | | | | | | (4J) | | | | | | — | | | | | | | | | | | | 576 | | |
Operating lease liabilities
|
| | | | 223 | | | | | | 35 | | | | | | 130 | | | | | | (4I) | | | | | | — | | | | | | | | | | | | 388 | | |
Other liabilities
|
| | | | 162 | | | | | | 25 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 187 | | |
Commitments and Contingencies | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Preferred Stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | |
Common Stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | |
Treasury Stock, at cost
|
| | | | (5,492) | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | (5,492) | | |
Additional paid-in capital
|
| | | | 326 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 326 | | |
Parent company net investment
|
| | | | — | | | | | | 5,321 | | | | | | (5,321) | | | | | | (4G) | | | | | | — | | | | | | | | | | | | — | | |
Retained earnings
|
| | | | 10,106 | | | | | | — | | | | | | (44) | | | | | | (4B) | | | | | | (30) | | | | | | (5C) | | | | | | 10,032 | | |
Accumulated other comprehensive (loss) income, net
|
| | | | (333) | | | | | | (152) | | | | | | 152 | | | | | | (4G) | | | | | | — | | | | | | | | | | | | (333) | | |
Total stockholders’ equity
|
| | | | 4,607 | | | | | | 5,169 | | | | | | (5,213) | | | | | | | | | | | | (30) | | | | | | | | | | | | 4,533 | | |
Noncontrolling interests
|
| | | | 346 | | | | | | 180 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 526 | | |
Total equity
|
| | | | 4,953 | | | | | | 5,349 | | | | | | (5,213) | | | | | | | | | | | | (30) | | | | | | | | | | | | 5,059 | | |
Total liabilities and equity
|
| | | $ | 12,426 | | | | | $ | 6,538 | | | | | | (4,402) | | | | | | | | | | | $ | 10,897 | | | | | | | | | | | $ | 25,459 | | |
| | |
Historical
Celanese |
| |
Historical
M&M Business as Reclassified (Note 3) |
| |
Acquisition
Accounting Adjustments |
| |
Note
|
| |
Other
Accounting Adjustments |
| |
Note
|
| |
Pro Forma
Combined |
| |||||||||||||||||||||
Net sales
|
| | | $ | 2,538 | | | | | $ | 889 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | $ | 3,427 | | |
Cost of sales
|
| | | | (1,793) | | | | | | (682) | | | | | | 25 | | | | | | (4L) | | | | | | — | | | | | | | | | | | | (2,479) | | |
| | | | | — | | | | | | — | | | | | | (29) | | | | | | (4D) | | | | | | — | | | | | | | | | | | | | | |
Gross profit
|
| | | | 745 | | | | | | 207 | | | | | | (4) | | | | | | | | | | | | — | | | | | | | | | | | | 948 | | |
Selling, general and administrative expenses
|
| | | | (174) | | | | | | (180) | | | | | | (1) | | | | | | (4I) | | | | | | — | | | | | | | | | | | | (355) | | |
Amortization of intangible assets
|
| | | | (11) | | | | | | (33) | | | | | | 33 | | | | | | (4L) | | | | | | — | | | | | | | | | | | | (61) | | |
| | | | | — | | | | | | — | | | | | | (50) | | | | | | (4E) | | | | | | — | | | | | | | | | | | | | | |
Research and development expenses
|
| | | | (24) | | | | | | (18) | | | | | | (8) | | | | | | (4I) | | | | | | — | | | | | | | | | | | | (50) | | |
Other (charges) gains, net
|
| | | | (1) | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | (1) | | |
Foreign exchange gain (loss), net
|
| | | | (1) | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | (1) | | |
Gain (loss) on disposition of businesses
and assets, net |
| | | | (3) | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | (3) | | |
Operating profit (loss)
|
| | | | 531 | | | | | | (24) | | | | | | (30) | | | | | | | | | | | | — | | | | | | | | | | | | 477 | | |
Equity in net earnings (loss) of affiliates
|
| | | | 56 | | | | | | (1) | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 55 | | |
Non-operating pension and other postretirement employee benefit (expense) income
|
| | | | 24 | | | | | | 4 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 28 | | |
Interest expense
|
| | | | (35) | | | | | | — | | | | | | — | | | | | | | | | | | | (144) | | | | | | (5B) | | | | | | (179) | | |
Interest income
|
| | | | 1 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 1 | | |
Dividend income – equity investments
|
| | | | 37 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 37 | | |
Other income (expense), net
|
| | | | 2 | | | | | | 3 | | | | | | 1 | | | | | | (4I) | | | | | | — | | | | | | | | | | | | 6 | | |
Earnings (loss) from continuing operations before tax
|
| | | | 616 | | | | | | (18) | | | | | | (29) | | | | | | | | | | | | (144) | | | | | | | | | | | | 425 | | |
Income tax (provision) benefit
|
| | | | (112) | | | | | | 4 | | | | | | 7 | | | | | | (4H) | | | | | | 33 | | | | | | (5D) | | | | | | (68) | | |
Earnings (loss) from continuing operations
|
| | | | 504 | | | | | | (14) | | | | | | (22) | | | | | | | | | | | | (111) | | | | | | | | | | | | 357 | | |
Net (earnings) loss attributable to noncontrolling interests
|
| | | | (2) | | | | | | (1) | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | (3) | | |
Net earnings (loss) from continuing
operations attributable to Celanese/ M&M Business |
| | | $ | 502 | | | | | $ | (15) | | | | | $ | (22) | | | | | | | | | | | $ | (111) | | | | | | | | | | | $ | 354 | | |
Earnings per common share attributable to Celanese Shareholders:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings per common share – basic
|
| | | | 4.64 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 3.27 | | |
Earnings per common share – diluted
|
| | | | 4.61 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 3.25 | | |
Weighted average shares – basic
|
| | | | 108,185,912 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 108,185,912 | | |
Weighted average shares – diluted
|
| | | | 108,917,577 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 108,917,577 | | |
| | |
Historical
Celanese |
| |
Historical
M&M Business as Reclassified (Note 3) |
| |
Acquisition
Accounting Adjustments |
| |
Note
|
| |
Other
Accounting Adjustments |
| |
Note
|
| |
Pro Forma
Combined |
| |||||||||||||||||||||
Net sales
|
| | | $ | 8,537 | | | | | $ | 3,532 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | $ | 12,069 | | |
Cost of sales
|
| | | | (5,855) | | | | | | (2,489) | | | | | | 100 | | | | | | (4L) | | | | | | — | | | | | | | | | | | | (8,357) | | |
| | | | | — | | | | | | — | | | | | | (113) | | | | | | (4D) | | | | | | — | | | | | | | | | | | | | | |
Gross profit
|
| | | | 2,682 | | | | | | 1,043 | | | | | | (13) | | | | | | | | | | | | — | | | | | | | | | | | | 3,712 | | |
Selling, general and administrative expenses
|
| | | | (633) | | | | | | (385) | | | | | | (44) | | | | | | (4B) | | | | | | — | | | | | | | | | | | | (1,064) | | |
| | | | | | | | | | | | | | | | | (2) | | | | | | (4I) | | | | | | | | | | | | | | | | | | | | |
Amortization of intangible assets
|
| | | | (25) | | | | | | (131) | | | | | | 131 | | | | | | (4L) | | | | | | — | | | | | | | | | | | | (225) | | |
| | | | | | | | | | | | | | | | | (200) | | | | | | (4E) | | | | | | — | | | | | | | | | | | | | | |
Research and development expenses
|
| | | | (86) | | | | | | (73) | | | | | | (34) | | | | | | (4I) | | | | | | — | | | | | | | | | | | | (193) | | |
Other gains (charges), net
|
| | | | 3 | | | | | | (5) | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | (2) | | |
Foreign exchange gain (loss), net
|
| | | | 2 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 2 | | |
Gain (loss) on disposition of businesses and assets, net
|
| | | | 3 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 3 | | |
Operating profit (loss)
|
| | | | 1,946 | | | | | | 449 | | | | | | (162) | | | | | | | | | | | | — | | | | | | | | | | | | 2,233 | | |
Equity in net earnings (loss) of affiliates
|
| | | | 146 | | | | | | 9 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 155 | | |
Non-operating pension and other postretirement employee benefit (expense) income
|
| | | | 106 | | | | | | 14 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 120 | | |
Interest expense
|
| | | | (91) | | | | | | — | | | | | | — | | | | | | | | | | | | (588) | | | | | | (5B) | | | | | | (709) | | |
| | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | (30) | | | | | | (5C) | | | | | | | | |
Refinancing expense
|
| | | | (9) | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | (9) | | |
Interest income
|
| | | | 8 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 8 | | |
Dividend income – equity investments
|
| | | | 147 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 147 | | |
Other (expense) income, net
|
| | | | (5) | | | | | | 1 | | | | | | 5 | | | | | | (4I) | | | | | | — | | | | | | | | | | | | 1 | | |
Earnings (loss) from continuing operations before tax
|
| | | | 2,248 | | | | | | 473 | | | | | | (157) | | | | | | | | | | | | (618) | | | | | | | | | | | | 1,946 | | |
Income tax (provision)
|
| | | | (330) | | | | | | (48) | | | | | | 36 | | | | | | (4H) | | | | | | 142 | | | | | | (5D) | | | | | | (200) | | |
Earnings (loss) from continuing operations
|
| | | | 1,918 | | | | | | 425 | | | | | | (121) | | | | | | | | | | | | (476) | | | | | | | | | | | | 1,746 | | |
Net (earnings) loss attributable to noncontrolling interests
|
| | | | (6) | | | | | | (17) | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | (23) | | |
Net earnings (loss) from continuing operations attributable to Celanese/M&M Business
|
| | | $ | 1,912 | | | | | $ | 408 | | | | | $ | (121) | | | | | | | | | | | $ | (476) | | | | | | | | | | | $ | 1,723 | | |
Earnings per common share attributable to Celanese Shareholders
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings per common share – basic
|
| | | | 17.19 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 15.49 | | |
Earnings per common share – diluted
|
| | | | 17.06 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 15.37 | | |
Weighted average shares – basic
|
| | | | 111,224,017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 111,224,017 | | |
Weighted average shares – diluted
|
| | | | 112,084,412 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 112,084,412 | | |
(in millions)
|
| | | | | | |
Base purchase price
|
| | | $ | 11,000 | | |
Contractual adjustments to purchase price(1)
|
| | | | (5) | | |
Total cash consideration transferred
|
| | | | 10,995 | | |
Receivable related to net pension liability assumed(2)
|
| | | | (33) | | |
Estimated fair value of share-based compensation awards attributed to pre-combination services(3)
|
| | | | 1 | | |
Total transaction consideration
|
| | | $ | 10,963 | | |
(in millions)
|
| | | | | | |
Total consideration for M&M Acquisition
|
| | | $ | 10,963 | | |
Cash and cash equivalents
|
| | | | 80 | | |
Trade receivables – third party and affiliates
|
| | | | 577 | | |
Inventories
|
| | | | 785 | | |
Other assets (current)
|
| | | | 75 | | |
Investments in affiliates
|
| | | | 56 | | |
Property, plant and equipment
|
| | | | 1,400 | | |
Operating lease right-of-use assets
|
| | | | 202 | | |
Deferred income taxes
|
| | | | 19 | | |
Other assets (non-current)
|
| | | | 2 | | |
Intangible assets
|
| | | | 3,900 | | |
Total assets
|
| | |
|
7,096
|
| |
Trade payables – third party and affiliates
|
| | | | 531 | | |
Income taxes payable
|
| | | | 79 | | |
Other liabilities (current)
|
| | | | 106 | | |
Deferred income taxes
|
| | | | 986 | | |
Benefit obligations
|
| | | | 33 | | |
Operating lease liabilities
|
| | | | 195 | | |
Other liabilities (non-current)
|
| | | | 25 | | |
Noncontrolling interests
|
| | | | 180 | | |
Net assets acquired
|
| | |
|
4,961
|
| |
Preliminary allocation to goodwill
|
| | | $ | 6,002 | | |
Presentation in Historical Financial
Statements |
| |
Presentation in Preliminary
Unaudited Pro Forma Condensed Combined Financial Statements |
| |
M&M Business
Before Reclassification |
| |
Reclassification
|
| |
M&M Business
as Reclassified |
| |||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | Cash and cash equivalents | | | | $ | 80 | | | | | | | | | | | $ | 80 | | |
Accounts and notes receivable, net
|
| | Trade receivables – third party and affiliates | | | | | 577 | | | | | | | | | | | | 577 | | |
Inventories | | | Inventories | | | | | 785 | | | | | | | | | | | | 785 | | |
Prepaid expenses and other current assets
|
| | Other assets (current) | | | | | 75 | | | | | | | | | | | | 75 | | |
Investments and noncurrent receivables
|
| | Investment in affiliates | | | | | 56 | | | | | | | | | | | | 56 | | |
Property, plant and equipment, net
|
| | Property, plant and equipment (net of accumulated depreciation) | | | | | 997 | | | | | | | | | | | | 997 | | |
Deferred charges and other assets
|
| | Operating lease right-of-use assets | | | | | 44 | | | | | $ | (2)(i) | | | | | | 42 | | |
| | | Other assets (non-current) | | | | | — | | | | | | 2(i) | | | | | | 2 | | |
Goodwill | | | Goodwill | | | | | 2,093 | | | | | | | | | | | | 2,093 | | |
Other intangible assets | | | Intangible assets, net | | | | | 1,812 | | | | | | | | | | | | 1,812 | | |
Deferred income tax assets | | | Deferred income taxes | | | | | 19 | | | | | | | | | | | | 19 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable | | | Trade payables – third party and affiliates | | | | | 531 | | | | | | | | | | | | 531 | | |
Income taxes payable | | | Income taxes payable | | | | | 79 | | | | | | | | | | | | 79 | | |
Accrued and other current liabilities
|
| | Other liabilities (current) | | | | | 106 | | | | | | | | | | | | 106 | | |
Deferred income tax liabilities
|
| | Deferred income taxes | | | | | 413 | | | | | | | | | | | | 413 | | |
Other noncurrent obligations
|
| |
Other liabilities (non-current)
|
| | | | 60 | | | | | | (35)(ii) | | | | | | 25 | | |
| | | Operating lease liabilities | | | | | | | | | | | 35(ii) | | | | | | 35 | | |
Equity | | | | | | | | | | | | | | | | | | | | | | |
Parent Company net investment
|
| | Parent Company net investment | | | | | 5,321 | | | | | | | | | | | | 5,321 | | |
Accumulated other comprehensive income (loss)
|
| |
Accumulated other
comprehensive income (loss), net |
| | | | (152) | | | | | | | | | | | | (152) | | |
Noncontrolling interests | | | Noncontrolling interests | | | | | 180 | | | | | | | | | | | | 180 | | |
Presentation in Historical
Financial Statements |
| |
Presentation in Preliminary
Unaudited Pro Forma Condensed Combined Financial Statements |
| |
M&M Business Before
Reclassification |
| |
Reclassification
|
| |
M&M Business
as Reclassified |
| |||||||||
Net sales | | | Net sales | | | | $ | 889 | | | | | | | | | | | $ | 889 | | |
Cost of sales | | | Cost of Sales | | | | | (682) | | | | | | | | | | | | (682) | | |
Selling, general and
administrative expenses |
| | Selling, general and administrative expenses | | | | | (84) | | | | | $ | (96)(i) | | | | | | (180) | | |
Integration and separation
costs |
| | | | | | | (96) | | | | | | 96(i) | | | | | | — | | |
Amortization of intangibles
|
| | Amortization of Intangible Assets | | | | | (33) | | | | | | | | | | | | (33) | | |
Research and development
expenses |
| |
Research and development
expenses |
| | | | (18) | | | | | | | | | | | | (18) | | |
Equity in earnings of nonconsolidated affiliates
|
| | Equity in net earnings (loss) of affiliates | | | | | (1) | | | | | | | | | | | | (1) | | |
Sundry income (expense),
net |
| |
Non-operating pension
and other postretirement employee benefit (expense) income |
| | | | 7 | | | | | | (3)(ii) | | | | | | 4 | | |
| | | Other income (expense), net | | | | | — | | | | | | 3(ii) | | | | | | 3 | | |
Benefit from income taxes
|
| | Income tax (provision) benefit | | | | | 4 | | | | | | | | | | | | 4 | | |
Net income attributable to
noncontrolling interests |
| | Net (earnings) loss attributable to noncontrolling interests | | | | | (1) | | | | | | | | | | | | (1) | | |
Presentation in Historical
Financial Statements |
| |
Presentation in Preliminary
Unaudited Pro Forma Condensed Combined Financial Statements |
| |
M&M Business Before
Reclassification |
| |
Reclassification
|
| |
M&M Business
as Reclassified |
| |||||||||
Net sales | | | Net sales | | | | $ | 3,532 | | | | | | | | | | | $ | 3,532 | | |
Cost of sales | | | Cost of Sales | | | | | (2,489) | | | | | | | | | | | | (2,489) | | |
Selling, general and
administrative expenses |
| | Selling, general and administrative expenses | | | | | (331) | | | | | $ | (54)(i) | | | | | | (385) | | |
Integration and separation
costs |
| | | | | | | (54) | | | | | | 54(i) | | | | | | — | | |
Amortization of intangibles
|
| | Amortization of Intangible Assets | | | | | (131) | | | | | | | | | | | | (131) | | |
Research and development
expenses |
| |
Research and development
expenses |
| | | | (73) | | | | | | | | | | | | (73) | | |
Restructuring and asset related charges, net
|
| |
Other (charges) gains, net
|
| | | | (5) | | | | | | | | | | | | (5) | | |
Equity in earnings of nonconsolidated affiliates
|
| | Equity in net earnings (loss) of affiliates | | | | | 9 | | | | | | | | | | | | 9 | | |
Sundry income (expense),
net |
| |
Non-operating pension
and other postretirement employee benefit (expense) income |
| | | | 15 | | | | | | (1)(ii) | | | | | | 14 | | |
| | | Other income (expense), net | | | | | — | | | | | | 1(ii) | | | | | | 1 | | |
Provision for income taxes
|
| | Income tax (provision) benefit | | | | | (48) | | | | | | | | | | | | (48) | | |
Net income attributable to
noncontrolling interests |
| | Net (earnings) loss attributable to noncontrolling interests | | | | | (17) | | | | | | | | | | | | (17) | | |
Step-up adjustments
(in millions) |
| |
Historical Value
|
| |
Fair Value
|
| |
Step-up
|
| |||||||||
Property, plant and equipment
|
| | | $ | 997 | | | | | $ | 1,400 | | | | | $ | 403 | | |
Intangible assets, net
|
| | | | 1,812 | | | | | | 3,900 | | | | | | 2,088 | | |
Total
|
| | | $ | 2,809 | | | | | $ | 5,300 | | | | | $ | 2,491 | | |
Property, plant and equipment
(in millions) |
| |
Preliminary
Fair Value |
| |
Estimated
Useful Life (years) |
| |
Three Months
Ended March 31, 2022 |
| |
Year Ended
December 31, 2021 |
| |||||||||
Land
|
| | | $ | 150 | | | |
n/a
|
| | | | n/a | | | | | | n/a | | |
Buildings
|
| | | | 250 | | | |
5 – 30
|
| | | $ | 4 | | | | | $ | 13 | | |
Machinery and equipment
|
| | | | 1,000 | | | |
3 – 20
|
| | | | 25 | | | | | | 100 | | |
Total
|
| | | $ | 1,400 | | | | | | | | $ | 29 | | | | | $ | 113 | | |
Intangible assets
(in millions) |
| |
Preliminary
Fair Value |
| |
Estimated
Useful Life (years) |
| |
Three Months
Ended March 31, 2022 |
| |
Year Ended
December 31, 2021 |
| |||||||||
Customers
|
| |
$2,000
|
| | | | 14 | | | | | $ | 36 | | | | | $ | 143 | | |
Tradenames
|
| |
900
|
| | | | Indefinite | | | | | | — | | | | | | — | | |
Technology
|
| |
1,000
|
| | | | 15 – 20 | | | | | | 14 | | | | | | 57 | | |
Total
|
| |
$3,900
|
| | | | | | | | | $ | 50 | | | | | $ | 200 | | |
(in millions)
|
| |
Three Months
Ended March 31, 2022 |
| |
Year ended
December 31, 2021 |
| ||||||
Interest expense on Term Loan Facility
|
| | | $ | 8 | | | | | $ | 46 | | |
Interest expense on Senior Unsecured Notes
|
| | | | 132 | | | | | | 527 | | |
Amortization of debt issuance cost
|
| | | | 4 | | | | | | 15 | | |
Pro forma adjustment to interest expense
|
| | | $ | 144 | | | | | $ | 588 | | |
| | |
March 31, 2022
|
| |||||||||
| | |
Actual
|
| |
As Adjusted
|
| ||||||
| | |
(unaudited)
(in millions) |
| |||||||||
Cash and cash equivalents
|
| | | $ | 605 | | | | | $ | 9,574 | | |
Total debt: | | | | | | | | | | | | | |
Revolving credit facility(a)
|
| | | | 300 | | | | | | 300 | | |
4.625% Senior Notes due 2022
|
| | | | 500 | | | | | | 500 | | |
1.125% Senior Notes due 2023(b)
|
| | | | 499 | | | | | | 499 | | |
3.500% Senior Notes due 2024
|
| | | | 499 | | | | | | 499 | | |
1.250% Senior Notes due 2025(c)
|
| | | | 332 | | | | | | 332 | | |
1.400% Senior Notes due 2026
|
| | | | 400 | | | | | | 400 | | |
2.125% Senior Notes due 2027(d)
|
| | | | 553 | | | | | | 553 | | |
0.625% Senior Notes due 2028(e)
|
| | | | 555 | | | | | | 555 | | |
4.777% Senior Notes due 2026 offered hereby
|
| | | | — | | | | | | 1,010(f) | | |
5.337% Senior Notes due 2029 offered hereby
|
| | | | — | | | | | | 505(f) | | |
USD notes offered in the concurrent USD notes offering
|
| | | | — | | | | | | 7,500 | | |
Finance leases
|
| | | | 166 | | | | | | 166 | | |
Industrial revenue bonds and other debt
|
| | | | 206 | | | | | | 206 | | |
Subtotal
|
| | | | 4,010 | | | | | | 13,025 | | |
Unamortized debt issuance costs
|
| | | | (18) | | | | | | (18)(g) | | |
Total debt
|
| | | | 3,992 | | | | | | 13,007 | | |
Total stockholders’ equity
|
| | | | 4,607 | | | | | | 4,607 | | |
Total capitalization
|
| | | $ | 8,599 | | | | | $ | 17,614 | | |
Moody’s Rating*
|
| |
Percentage interest
rate increase on the notes |
| |||
Ba1
|
| | | | 0.250% | | |
Ba2
|
| | | | 0.500% | | |
Ba3
|
| | | | 0.750% | | |
B1 or below
|
| | | | 1.000% | | |
S&P Rating*
|
| |
Percentage interest
rate increase on the notes |
| |||
BB+
|
| | | | 0.250% | | |
BB
|
| | | | 0.500% | | |
BB–
|
| | | | 0.750% | | |
B1 or below
|
| | | | 1.000% | | |
Underwriters
|
| |
Aggregate
Principal Amount of 2026 Notes to be Purchased |
| |
Aggregate
Principal Amount of 2029 Notes to be Purchased |
| ||||||
Merrill Lynch International
|
| | | € | 350,000,000 | | | | | € | 175,000,000 | | |
Citigroup Global Markets Limited
|
| | | | 90,000,000 | | | | | | 45,000,000 | | |
Deutsche Bank AG, London Branch
|
| | | | 90,000,000 | | | | | | 45,000,000 | | |
HSBC Bank plc
|
| | | | 90,000,000 | | | | | | 45,000,000 | | |
J.P. Morgan Securities plc
|
| | | | 90,000,000 | | | | | | 45,000,000 | | |
MUFG Securities EMEA plc
|
| | | | 41,250,000 | | | | | | 20,625,000 | | |
SMBC Nikko Capital Markets Limited
|
| | | | 41,250,000 | | | | | | 20,625,000 | | |
UniCredit Bank AG
|
| | | | 41,250,000 | | | | | | 20,625,000 | | |
U.S. Bancorp Investments, Inc.
|
| | | | 41,250,000 | | | | | | 20,625,000 | | |
Morgan Stanley & Co. International plc
|
| | | | 27,500,000 | | | | | | 13,750,000 | | |
PNC Capital Markets LLC
|
| | | | 27,500,000 | | | | | | 13,750,000 | | |
Banco Santander, S.A.
|
| | | | 17,500,000 | | | | | | 8,750,000 | | |
Goldman Sachs & Co. LLC
|
| | | | 17,500,000 | | | | | | 8,750,000 | | |
Standard Chartered Bank
|
| | | | 17,500,000 | | | | | | 8,750,000 | | |
The Toronto-Dominion Bank
|
| | | | 17,500,000 | | | | | | 8,750,000 | | |
Total
|
| | | € | 1,000,000,000 | | | | | € | 500,000,000 | | |
| | |
Page No.
|
| |||
Index to Audited Combined Financial Statements of the M&M Business | | | |||||
| | | | F-2 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | | |
| | | | F-8 | | | |
| | | | F-9 | | | |
Index to Unaudited Combined Financial Statements of the M&M Business | | | |||||
| | | | F-31 | | | |
| | | | F-32 | | | |
| | | | F-33 | | | |
| | | | F-34 | | | |
| | | | F-35 | | | |
| | | | F-37 | | |
(In millions)
For the years ended December 31, |
| |
2021
|
| |
2020
|
| ||||||
Net sales
|
| | | $ | 3,532 | | | | | $ | 2,806 | | |
Cost of sales
|
| | | | 2,489 | | | | | | 2,168 | | |
Research and development expenses
|
| | | | 73 | | | | | | 74 | | |
Selling, general and administrative expenses
|
| | | | 331 | | | | | | 287 | | |
Amortization of intangibles
|
| | | | 131 | | | | | | 129 | | |
Restructuring and asset related charges, net
|
| | | | 5 | | | | | | 38 | | |
Goodwill impairment charges
|
| | | | — | | | | | | 3,129 | | |
Integration and separation costs
|
| | | | 54 | | | | | | 31 | | |
Equity in earnings of nonconsolidated affiliates
|
| | | | 9 | | | | | | 19 | | |
Sundry income, net
|
| | | | 15 | | | | | | 13 | | |
Income (loss) before income taxes
|
| | | | 473 | | | | | | (3,018) | | |
Provision for income taxes
|
| | | | 48 | | | | | | 16 | | |
Net income (loss)
|
| | | | 425 | | | | | | (3,034) | | |
Net income attributable to noncontrolling interests
|
| | | | 17 | | | | | | 13 | | |
Net income (loss) attributable to Mobility & Materials Businesses
|
| | | $ | 408 | | | | | $ | (3,047) | | |
(In millions)
For the years ended December 31, |
| |
2021
|
| |
2020
|
| ||||||
Net income (loss)
|
| | | $ | 425 | | | | | $ | (3,034) | | |
Other comprehensive (loss) income, net of tax | | | | | | | | | | | | | |
Cumulative translation adjustments
|
| | | | (138) | | | | | | 141 | | |
Total other comprehensive (loss) income
|
| | | | (138) | | | | | | 141 | | |
Comprehensive income (loss)
|
| | | | 287 | | | | | | (2,893) | | |
Comprehensive income attributable to noncontrolling interests, net of tax
|
| | | | 17 | | | | | | 13 | | |
Comprehensive income (loss) attributable to Mobility & Materials Businesses
|
| | | $ | 270 | | | | | $ | (2,906) | | |
(In millions)
|
| |
December 31, 2021
|
| |
December 31, 2020
|
| ||||||
Assets | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 80 | | | | | $ | 70 | | |
Accounts and notes receivable, net
|
| | | | 509 | | | | | | 481 | | |
Inventories
|
| | | | 690 | | | | | | 482 | | |
Prepaid expenses and other current assets
|
| | | | 57 | | | | | | 26 | | |
Total current assets
|
| | | | 1,336 | | | | | | 1,059 | | |
Property | | | | | | | | | | | | | |
Property, plant and equipment
|
| | | | 1,503 | | | | | | 1,491 | | |
Less: Accumulated depreciation
|
| | | | 480 | | | | | | 391 | | |
Property, plant and equipment, net
|
| | | | 1,023 | | | | | | 1,100 | | |
Other Assets | | | | | | | | | | | | | |
Goodwill
|
| | | | 2,118 | | | | | | 2,169 | | |
Other intangible assets
|
| | | | 1,851 | | | | | | 2,012 | | |
Investments and noncurrent receivables
|
| | | | 67 | | | | | | 68 | | |
Deferred income tax assets
|
| | | | 22 | | | | | | 20 | | |
Deferred charges and other assets
|
| | | | 45 | | | | | | 29 | | |
Total Other Assets
|
| | | | 4,103 | | | | | | 4,298 | | |
Total Assets
|
| | | $ | 6,462 | | | | | $ | 6,457 | | |
Liabilities and Equity | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 463 | | | | | $ | 353 | | |
Income taxes payable
|
| | | | 84 | | | | | | 40 | | |
Accrued and other current liabilities
|
| | | | 139 | | | | | | 128 | | |
Total Current Liabilities
|
| | | | 686 | | | | | | 521 | | |
Other Noncurrent Obligations | | | | | | | | | | | | | |
Deferred income tax liabilities
|
| | | | 443 | | | | | | 519 | | |
Other noncurrent obligations
|
| | | | 63 | | | | | | 51 | | |
Total Other Noncurrent Obligations
|
| | | | 506 | | | | | | 570 | | |
Total Liabilities
|
| | | | 1,192 | | | | | | 1,091 | | |
Commitments and Contingent Liabilities (Note 12) | | | | | | | | | | | | | |
Equity | | | | | | | | | | | | | |
Parent company net investment
|
| | | | 5,182 | | | | | | 5,150 | | |
Accumulated other comprehensive (loss) income
|
| | | | (93) | | | | | | 45 | | |
Total Mobility & Materials Businesses Equity
|
| | | | 5,089 | | | | | | 5,195 | | |
Noncontrolling interests
|
| | | | 181 | | | | | | 171 | | |
Total Equity
|
| | | | 5,270 | | | | | | 5,366 | | |
Total Liabilities and Equity
|
| | | $ | 6,462 | | | | | $ | 6,457 | | |
(In millions)
For the years ended December 31, |
| |
2021
|
| |
2020
|
| ||||||
Operating Activities | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 425 | | | | | $ | (3,034) | | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
| | | | | | | | | | | | |
Depreciation of property, plant and equipment
|
| | | | 100 | | | | | | 110 | | |
Amortization of definite-lived intangible assets
|
| | | | 131 | | | | | | 129 | | |
Stock-based compensation
|
| | | | 10 | | | | | | 6 | | |
Credit for deferred income tax
|
| | | | (69) | | | | | | (55) | | |
Goodwill impairment charges
|
| | | | — | | | | | | 3,129 | | |
Restructuring and asset related charges, net
|
| | | | 5 | | | | | | 38 | | |
Equity in earnings of affiliates
|
| | | | (9) | | | | | | (19) | | |
Changes in assets and liabilities:
|
| | | | | | | | | | | | |
Accounts and notes receivable
|
| | | | (46) | | | | | | 52 | | |
Inventories
|
| | | | (225) | | | | | | 255 | | |
Accounts payable
|
| | | | 115 | | | | | | 16 | | |
Other assets and liabilities, net
|
| | | | 11 | | | | | | 53 | | |
Cash provided by operating activities
|
| | | | 448 | | | | | | 680 | | |
Investing Activities | | | | | | | | | | | | | |
Capital expenditures
|
| | | | (50) | | | | | | (74) | | |
Cash distributions from equity affiliates
|
| | | | 5 | | | | | | 13 | | |
Cash used for investing activities
|
| | | | (45) | | | | | | (61) | | |
Financing Activities | | | | | | | | | | | | | |
Distributions to noncontrolling interests
|
| | | | (7) | | | | | | (38) | | |
Net transfers to Parent
|
| | | | (386) | | | | | | (608) | | |
Cash used for financing activities
|
| | | | (393) | | | | | | (646) | | |
Increase (decrease) in cash and cash equivalents
|
| | | | 10 | | | | | | (27) | | |
Cash and cash equivalents at beginning of period
|
| | | | 70 | | | | | | 97 | | |
Cash and cash equivalents at end of period
|
| | | $ | 80 | | | | | $ | 70 | | |
Supplemental cash flow information | | | | | | | | | | | | | |
Cash paid during the year for:
|
| | | | | | | | | | | | |
Income taxes
|
| | | $ | 72 | | | | | $ | 33 | | |
(In millions)
|
| |
Parent Company
Net Investment |
| |
Accumulated Other
Comprehensive Income (Loss) |
| |
Total Mobility &
Materials Businesses Equity |
| |
Noncontrolling
Interests |
| |
Total Equity
|
| |||||||||||||||
2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance at January 1, 2020
|
| | | $ | 8,799 | | | | | $ | (96) | | | | | $ | 8,703 | | | | | $ | 196 | | | | | $ | 8,899 | | |
Net (loss) income
|
| | | | (3,047) | | | | | | — | | | | | | (3,047) | | | | | | 13 | | | | | | (3,034) | | |
Other comprehensive income
|
| | | | — | | | | | | 141 | | | | | | 141 | | | | | | — | | | | | | 141 | | |
Distributions to noncontrolling interests
|
| | | | — | | | | | | — | | | | | | — | | | | | | (38) | | | | | | (38) | | |
Net transfers to Parent
|
| | | | (602) | | | | | | — | | | | | | (602) | | | | | | — | | | | | | (602) | | |
Balance at December 31, 2020
|
| | | $ | 5,150 | | | | | $ | 45 | | | | | $ | 5,195 | | | | | $ | 171 | | | | | $ | 5,366 | | |
2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income
|
| | | | 408 | | | | | | — | | | | | | 408 | | | | | | 17 | | | | | | 425 | | |
Other comprehensive loss
|
| | | | — | | | | | | (138) | | | | | | (138) | | | | | | — | | | | | | (138) | | |
Distributions to noncontrolling interests
|
| | | | — | | | | | | — | | | | | | — | | | | | | (7) | | | | | | (7) | | |
Net transfers to Parent
|
| | | | (376) | | | | | | — | | | | | | (376) | | | | | | — | | | | | | (376) | | |
Balance at December 31, 2021
|
| | | $ | 5,182 | | | | | $ | (93) | | | | | $ | 5,089 | | | | | $ | 181 | | | | | $ | 5,270 | | |
Note
|
| |
Page
|
| |||
| | | | F-10 | | | |
| | | | F-11 | | | |
| | | | F-16 | | | |
| | | | F-17 | | | |
| | | | F-18 | | | |
| | | | F-18 | | | |
| | | | F-22 | | | |
| | | | F-22 | | | |
| | | | F-22 | | | |
| | | | F-22 | | | |
| | | | F-23 | | | |
| | | | F-25 | | | |
| | | | F-26 | | | |
| | | | F-27 | | | |
| | | | F-28 | | | |
| | | | F-29 | | | |
| | | | F-29 | | | |
| | | | F-30 | | |
(In millions)
For the years ended December 31, |
| |
2021
|
| |
2020
|
| ||||||
Advanced Solutions
|
| | | $ | 660 | | | | | $ | 493 | | |
Engineering Polymers
|
| | | | 2,276 | | | | | | 1,856 | | |
Performance Resins
|
| | | | 596 | | | | | | 457 | | |
Total
|
| | | $ | 3,532 | | | | | $ | 2,806 | | |
(In millions)
For the years ended December 31, |
| |
2021
|
| |
2020
|
| ||||||
Selling and administrative expenses
|
| | | $ | 153 | | | | | $ | 140 | | |
Research and development expenses
|
| | | | 27 | | | | | | 29 | | |
Cost of sales
|
| | | | 11 | | | | | | 12 | | |
Integration and separation costs(1)
|
| | | | 54 | | | | | | 31 | | |
Restructuring and asset related charges, net
|
| | | | — | | | | | | 3 | | |
Total
|
| | | $ | 245 | | | | | $ | 215 | | |
(In millions)
For the years ended December 31, |
| |
2021
|
| |
2020
|
| ||||||
Cash pooling and general financing activities
|
| | | $ | (83) | | | | | $ | (371) | | |
Less: Corporate cost allocations
|
| | | | 245 | | | | | | 215 | | |
Less: Provision for income taxes
|
| | | | 48 | | | | | | 16 | | |
Total net transfers to Parent per Combined Statements of Changes in Net Parent
Investment |
| | | | (376) | | | | | | (602) | | |
Stock-based compensation
|
| | | | (10) | | | | | | (6) | | |
Net transfers to Parent per Combined Statements of Cash Flows
|
| | | $ | (386) | | | | | $ | (608) | | |
(In millions)
For the years ended December 31, |
| |
2021
|
| |
2020
|
| ||||||
Foreign exchange gains, net
|
| | | $ | 5 | | | | | $ | 5 | | |
Non-operating pension credit(1)
|
| | | | 14 | | | | | | 8 | | |
Miscellaneous expense, net
|
| | | | (4) | | | | | | — | | |
Sundry income, net
|
| | | $ | 15 | | | | | $ | 13 | | |
(In millions)
|
| |
December 31, 2021
|
| |
December 31, 2020
|
| ||||||
Accounts payable, trade
|
| | | $ | 395 | | | | | $ | 295 | | |
Other(1) | | | | | 68 | | | | | | 58 | | |
Total accounts payable
|
| | | $ | 463 | | | | | $ | 353 | | |
(In millions)
|
| |
December 31, 2021
|
| |
December 31, 2020
|
| ||||||
Accumulated losses for companies accounted for using equity
method (“nonconsolidated affiliates”) |
| | | $ | 66 | | | | | $ | 70 | | |
Accrued compensation and other employee related costs
|
| | | | 39 | | | | | | 20 | | |
Current operating lease liabilities(1)
|
| | | | 8 | | | | | | 8 | | |
Other(2) | | | | | 26 | | | | | | 30 | | |
Accrued and other current liabilities
|
| | | $ | 139 | | | | | $ | 128 | | |
(In millions)
For the years ended December 31, |
| |
2021
|
| |
2020
|
| ||||||
Income (Loss) before income taxes | | | | | | | | | | | | | |
Domestic
|
| | | $ | 13 | | | | | $ | (1,539) | | |
Foreign
|
| | | | 460 | | | | | | (1,479) | | |
Income (Loss) before income taxes
|
| | | $ | 473 | | | | | $ | (3,018) | | |
Current tax expense | | | | | | | | | | | | | |
Federal
|
| | | $ | 14 | | | | | $ | 16 | | |
State and local
|
| | | | 5 | | | | | | 1 | | |
Foreign(1)
|
| | | | 98 | | | | | | 54 | | |
Total current tax expense
|
| | | $ | 117 | | | | | $ | 71 | | |
Deferred tax benefit | | | | | | | | | | | | | |
Federal(1)
|
| | | $ | (30) | | | | | $ | (34) | | |
State and local
|
| | | | (6) | | | | | | (5) | | |
Foreign(1)
|
| | | | (33) | | | | | | (16) | | |
Total deferred tax benefit
|
| | | $ | (69) | | | | | $ | (55) | | |
Provision for income taxes
|
| | | | 48 | | | | | | 16 | | |
Net income (loss)
|
| | | $ | 425 | | | | | $ | (3,034) | | |
Reconciliation to U.S. Statutory Rate
|
| |
2021
|
| |
2020
|
| ||||||
Statutory U.S. federal income tax rate
|
| | | | 21.0% | | | | | | 21.0% | | |
Foreign income taxed at rates other than the statutory U.S. federal income tax
rate |
| | | | 0.4 | | | | | | (0.1) | | |
U.S. tax effect of foreign earnings and dividends(1)
|
| | | | (4.2) | | | | | | 0.3 | | |
Unrecognized tax benefits
|
| | | | (0.4) | | | | | | — | | |
Tax goodwill basis step-up(2)
|
| | | | (6.3) | | | | | | — | | |
State and local income taxes
|
| | | | (0.2) | | | | | | 0.1 | | |
Change in valuation allowance
|
| | | | (0.3) | | | | | | — | | |
Goodwill impairments
|
| | | | — | | | | | | (21.8) | | |
Other, net
|
| | | | 0.1 | | | | | | — | | |
Effective tax rate
|
| | | | 10.1% | | | | | | (0.5)% | | |
Deferred Tax Balances at December 31,
(In millions) |
| |
2021
|
| |
2020
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Tax loss and credit carryforwards(1)
|
| | | $ | 22 | | | | | $ | 28 | | |
Lease liability
|
| | | | 8 | | | | | | 5 | | |
Unrealized exchange gains, net
|
| | | | 1 | | | | | | 1 | | |
Other accruals and reserves
|
| | | | 15 | | | | | | 10 | | |
Other, net
|
| | | | 48 | | | | | | 21 | | |
Gross deferred tax assets
|
| | | $ | 94 | | | | | $ | 65 | | |
Valuation allowances(1)
|
| | | | (11) | | | | | | (10) | | |
Total deferred tax assets
|
| | | $ | 83 | | | | | $ | 55 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Inventory
|
| | | $ | (5) | | | | | $ | 1 | | |
Investments
|
| | | | (4) | | | | | | (11) | | |
Operating lease asset
|
| | | | (8) | | | | | | (5) | | |
Property
|
| | | | (86) | | | | | | (104) | | |
Intangibles
|
| | | | (401) | | | | | | (435) | | |
Total deferred tax liabilities
|
| | | $ | (504) | | | | | $ | (554) | | |
Total net deferred tax liability
|
| | | $ | (421) | | | | | $ | (499) | | |
Operating Loss and Tax Credit Carryforwards at December 31,
(In millions) |
| |
Deferred Tax Asset
|
| |||||||||
|
2021
|
| |
2020
|
| ||||||||
Operating loss carryforwards | | | | | | | | | | | | | |
Expire within 5 years
|
| | | $ | 2 | | | | | $ | — | | |
Expire after 5 years or indefinite expiration
|
| | | | 13 | | | | | | 19 | | |
Total operating loss carryforwards
|
| | | $ | 15 | | | | | $ | 19 | | |
Tax credit carryforwards | | | | | | | | | | | | | |
Expire within 5 years
|
| | | $ | — | | | | | $ | — | | |
Expire after 5 years or indefinite expiration
|
| | | | 7 | | | | | | 9 | | |
Total tax credit carryforwards
|
| | | $ | 7 | | | | | $ | 9 | | |
Total Operating Loss and Tax Credit Carryforwards
|
| | | $ | 22 | | | | | $ | 28 | | |
(In millions)
For the years ended December 31, |
| |
2021
|
| |
2020
|
| ||||||
Total unrecognized tax benefits at January 1,
|
| | | $ | 9 | | | | | $ | 9 | | |
Decreases related to positions taken on items from prior years
|
| | | | (2) | | | | | | — | | |
Increases related to positions taken on items from prior years
|
| | | | — | | | | | | — | | |
Increases related to positions taken in the current year
|
| | | | 1 | | | | | | 1 | | |
Settlement of uncertain tax positions with tax authorities
|
| | | | — | | | | | | (1) | | |
Decreases due to expiration of statutes of limitations
|
| | | | — | | | | | | — | | |
Exchange loss (gain)
|
| | | | — | | | | | | — | | |
Total unrecognized tax benefits at December 31,
|
| | | $ | 8 | | | | | $ | 9 | | |
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate
|
| | | $ | 8 | | | | | $ | 9 | | |
Total amount of interest and penalties recognized in “Provision for
income taxes” |
| | | $ | (1) | | | | | $ | — | | |
Total accrual for interest and penalties associated with unrecognized tax benefits
|
| | | $ | 2 | | | | | $ | 3 | | |
Tax Years Subject to Examination by Major Tax Jurisdiction at December 31, 2021
Jurisdiction |
| |
Earliest Open Year
|
| |||
Brazil
|
| | | | 2017 | | |
Canada
|
| | | | 2015 | | |
China
|
| | | | 2011 | | |
Germany
|
| | | | 2015 | | |
Japan
|
| | | | 2013 | | |
The Netherlands
|
| | | | 2017 | | |
Switzerland
|
| | | | 2015 | | |
United States: | | | | | | | |
Federal income tax(1)
|
| | | | 2012 | | |
State and local income tax
|
| | | | 2011 | | |
(In millions)
|
| |
December 31, 2021
|
| |
December 31, 2020
|
| ||||||
Accounts receivable, trade(1)
|
| | | $ | 388 | | | | | $ | 379 | | |
Notes receivable, trade
|
| | | | 31 | | | | | | 29 | | |
Other(2)
|
| | | | 90 | | | | | | 73 | | |
Total Accounts and Notes receivable, net
|
| | | $ | 509 | | | | | $ | 481 | | |
(In millions)
|
| |
December 31, 2021
|
| |
December 31, 2020
|
| ||||||
Finished goods
|
| | | $ | 446 | | | | | $ | 318 | | |
Work in process
|
| | | | 74 | | | | | | 30 | | |
Raw materials
|
| | | | 130 | | | | | | 96 | | |
Supplies
|
| | | | 40 | | | | | | 38 | | |
Total inventories
|
| | | $ | 690 | | | | | $ | 482 | | |
(In millions)
|
| |
Estimated Useful Lives
(Years) |
| |
December 31, 2021
|
| |
December 31, 2020
|
| |||||||||
Land and land improvements
|
| | | | 1 – 25 | | | | | $ | 166 | | | | | $ | 177 | | |
Buildings
|
| | | | 1 – 50 | | | | | | 264 | | | | | | 241 | | |
Machinery, equipment, and other
|
| | | | 1 – 25 | | | | | | 1,004 | | | | | | 975 | | |
Construction in progress
|
| | | | | | | | | | 69 | | | | | | 98 | | |
Total Property, Plant and Equipment
|
| | | | | | | | | $ | 1,503 | | | | | $ | 1,491 | | |
Total Accumulated Depreciation
|
| | | | | | | | | $ | (480) | | | | | $ | (391) | | |
Total Property, Plant and Equipment, net
|
| | | | | | | | | $ | 1,023 | | | | | $ | 1,100 | | |
(In millions)
For the years ended December 31, |
| |
2021
|
| |
2020
|
| ||||||
Depreciation expense
|
| | | $ | 100 | | | | | $ | 110 | | |
Investments in Nonconsolidated Affiliates as of December 31,
(In millions) |
| |
2021
|
| |
2020
|
| ||||||
Investments and noncurrent receivables
|
| | | $ | 66 | | | | | $ | 66 | | |
Accrued and other current liabilities
|
| | | | (66) | | | | | | (70) | | |
Net investment in nonconsolidated affiliates
|
| | | $ | — | | | | | $ | (4) | | |
(In millions)
For the years ended December 31, |
| |
2021
|
| |
2020
|
| ||||||
Dividends from nonconsolidated affiliates
|
| | | $ | 5 | | | | | $ | 13 | | |
Nonconsolidated affiliate
|
| |
Total ownership
percentage |
| |||
Toray Co., Ltd.
|
| | | | 50.0% | | |
DuBay Polymer GmbH
|
| | | | 50.0% | | |
DuP Teijin Films U.K.
|
| | | | 50.0% | | |
DuP Teijin Films S.A.
|
| | | | 50.0% | | |
Teijin DuPont Films, Inc.
|
| | | | 49.9% | | |
Teijin-DuPont Films, L.P.
|
| | | | 49.9% | | |
(In millions)
|
| |
Goodwill
|
| |||
Balance at December 31, 2019
|
| | | $ | 5,247 | | |
Impairments
|
| | | | (3,129) | | |
Currency Translation Adjustment
|
| | | | 51 | | |
Balance at December 31, 2020
|
| | | $ | 2,169 | | |
Impairments
|
| | | | — | | |
Currency Translation Adjustment
|
| | | | (51) | | |
Balance at December 31, 2021
|
| | | $ | 2,118 | | |
| | |
December 31, 2021
|
| |
December 31, 2020
|
| ||||||||||||||||||||||||||||||
(In millions)
|
| |
Gross
Carrying Amount |
| |
Accumulated
Amort |
| |
Net
|
| |
Gross
Carrying Amount |
| |
Accumulated
Amort |
| |
Net
|
| ||||||||||||||||||
Intangible assets with finite lives:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Developed technology
|
| | | $ | 585 | | | | | $ | (186) | | | | | $ | 399 | | | | | $ | 586 | | | | | $ | (143) | | | | | $ | 443 | | |
Customer-related
|
| | | | 1,635 | | | | | | (371) | | | | | | 1,264 | | | | | | 1,674 | | | | | | (293) | | | | | | 1,381 | | |
Other
|
| | | | 9 | | | | | | (1) | | | | | | 8 | | | | | | 9 | | | | | | (1) | | | | | | 8 | | |
Total other intangible assets with
finite lives |
| | | $ | 2,229 | | | | | $ | (558) | | | | | $ | 1,671 | | | | | $ | 2,269 | | | | | $ | (437) | | | | | $ | 1,832 | | |
Intangible assets with indefinite lives:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trademarks/tradenames
|
| | | | 180 | | | | | | — | | | | | | 180 | | | | | | 180 | | | | | | — | | | | | | 180 | | |
Total other intangible assets with
indefinite lives |
| | | | 180 | | | | | | — | | | | | | 180 | | | | | | 180 | | | | | | — | | | | | | 180 | | |
Total
|
| | | $ | 2,409 | | | | | $ | (558) | | | | | $ | 1,851 | | | | | $ | 2,449 | | | | | $ | (437) | | | | | $ | 2,012 | | |
(In millions)
For the years ended December 31, |
| |
2021
|
| |
2020
|
| ||||||
Operating lease cost
|
| | | $ | 9 | | | | | $ | 10 | | |
Short-term lease cost
|
| | | | 1 | | | | | | — | | |
Total lease cost
|
| | | $ | 10 | | | | | $ | 10 | | |
(In millions)
For the years ended December 31, |
| |
2021
|
| |
2020
|
| ||||||
Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | | | | | | | |
Operating cash flows from operating leases
|
| | | $ | 9 | | | | | $ | 10 | | |
(In millions)
|
| |
December 31, 2021
|
| |
December 31, 2020
|
| ||||||
Operating Leases | | | | | | | | | | | | | |
Operating lease right-of-use assets(1)
|
| | | $ | 44 | | | | | $ | 27 | | |
Current operating lease liabilities(2)
|
| | | | 8 | | | | | | 8 | | |
Noncurrent operating lease liabilities(3)
|
| | | | 36 | | | | | | 19 | | |
Total operating lease liabilities
|
| | | $ | 44 | | | | | $ | 27 | | |
Lease Term and Discount Rate
|
| |
December 31, 2021
|
| |
December 31, 2020
|
| ||||||
Weighted-average remaining lease term (years)
|
| | | | 12.16 | | | | | | 8.01 | | |
Discount rate
|
| | | | 2.42% | | | | | | 3.16% | | |
Maturity of Lease Liabilities at December 31, 2021
(In millions) |
| |
Operating Leases
|
| |||
2022
|
| | | $ | 9 | | |
2023
|
| | | | 7 | | |
2024
|
| | | | 6 | | |
2025
|
| | | | 5 | | |
2026
|
| | | | 4 | | |
2027 and thereafter
|
| | | | 23 | | |
Total lease payments
|
| | | $ | 54 | | |
Less: Interest
|
| | | | 10 | | |
Present value of lease liabilities
|
| | | $ | 44 | | |
(In millions)
For the years ended December 31, |
| |
2021
|
| |
2020
|
| ||||||
Plan Name | | | | | | | | | | | | | |
Non-U.S. Plans (credit) expense
|
| | | $ | (3) | | | | | $ | 4 | | |
(In millions)
For the years ended December 31, |
| |
2021
|
| |
2020
|
| ||||||
Contributions
|
| | | $ | 13 | | | | | $ | 11 | | |
(In millions)
For the years ended December 31, |
| |
Cumulative
Translation Adj |
| |
Total
|
| ||||||
2020 | | | | | | | | | | | | | |
Balance at January 1, 2020
|
| | | $ | (96) | | | | | $ | (96) | | |
Other comprehensive income before reclassifications
|
| | | | 141 | | | | | | 141 | | |
Net other comprehensive income
|
| | | $ | 141 | | | | | $ | 141 | | |
Balance at December 31, 2020
|
| | | $ | 45 | | | | | $ | 45 | | |
2021 | | | | | | | | | | | | | |
Other comprehensive loss before reclassifications
|
| | | | (138) | | | | | | (138) | | |
Net other comprehensive loss
|
| | | $ | (138) | | | | | $ | (138) | | |
Balance at December 31, 2021
|
| | | $ | (93) | | | | | $ | (93) | | |
(In millions)
For the years ended December 31, |
| |
2021
|
| |
2020
|
| ||||||
United States
|
| | | $ | 563 | | | | | $ | 493 | | |
Canada
|
| | | | 40 | | | | | | 40 | | |
EMEA(1) | | | | | 888 | | | | | | 675 | | |
Asia Pacific(2)
|
| | | | 1,857 | | | | | | 1,438 | | |
Latin America
|
| | | | 184 | | | | | | 160 | | |
Total
|
| | | $ | 3,532 | | | | | $ | 2,806 | | |
| | |
December 31,
|
| |||||||||
(In millions)
|
| |
2021
|
| |
2020
|
| ||||||
United States
|
| | | $ | 418 | | | | | $ | 430 | | |
Canada
|
| | | | 26 | | | | | | 24 | | |
EMEA(1)(2) | | | | | 270 | | | | | | 304 | | |
Asia Pacific(3)
|
| | | | 304 | | | | | | 337 | | |
Latin America
|
| | | | 5 | | | | | | 5 | | |
Total
|
| | | $ | 1,023 | | | | | $ | 1,100 | | |
(In millions)
For the three months ended March 31, |
| |
2022
|
| |
2021
|
| ||||||
Net sales
|
| | | $ | 889 | | | | | $ | 826 | | |
Cost of sales
|
| | | | 682 | | | | | | 576 | | |
Research and development expenses
|
| | | | 18 | | | | | | 19 | | |
Selling, general and administrative expenses
|
| | | | 84 | | | | | | 81 | | |
Amortization of intangibles
|
| | | | 33 | | | | | | 33 | | |
Integration and separation costs
|
| | | | 96 | | | | | | 1 | | |
Equity in (losses) earnings of nonconsolidated affiliates
|
| | | | (1) | | | | | | 3 | | |
Sundry income (expense), net
|
| | | | 7 | | | | | | (2) | | |
(Loss) Income before income taxes
|
| | | | (18) | | | | | | 117 | | |
Benefit from income taxes
|
| | | | (4) | | | | | | (9) | | |
Net (loss) income
|
| | | | (14) | | | | | | 126 | | |
Net income attributable to noncontrolling interests
|
| | | | 1 | | | | | | 5 | | |
Net (loss) income attributable to Mobility & Materials Businesses
|
| | | $ | (15) | | | | | $ | 121 | | |
(In millions)
For the three months ended March 31, |
| |
2022
|
| |
2021
|
| ||||||
Net (loss) income
|
| | | $ | (14) | | | | | $ | 126 | | |
Other comprehensive loss, net of tax | | | | | | | | | | | | | |
Cumulative translation adjustments
|
| | | | (59) | | | | | | (70) | | |
Total other comprehensive loss
|
| | | | (59) | | | | | | (70) | | |
Comprehensive (loss) income
|
| | | | (73) | | | | | | 56 | | |
Comprehensive income attributable to noncontrolling interests, net of tax
|
| | | | 1 | | | | | | 5 | | |
Comprehensive (loss) income attributable to Mobility & Materials Businesses
|
| | | $ | (74) | | | | | $ | 51 | | |
(In millions)
|
| |
March 31, 2022
|
| |
December 31, 2021
|
| ||||||
Assets | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 80 | | | | | $ | 80 | | |
Accounts and notes receivable, net
|
| | | | 577 | | | | | | 509 | | |
Inventories
|
| | | | 785 | | | | | | 690 | | |
Prepaid expenses and other current assets
|
| | | | 75 | | | | | | 57 | | |
Total current assets
|
| | | | 1,517 | | | | | | 1,336 | | |
Property | | | | | | | | | | | | | |
Property, plant and equipment
|
| | | | 1,494 | | | | | | 1,503 | | |
Less: Accumulated depreciation
|
| | | | 497 | | | | | | 480 | | |
Property, plant and equipment, net
|
| | | | 997 | | | | | | 1,023 | | |
Other Assets | | | | | | | | | | | | | |
Goodwill
|
| | | | 2,093 | | | | | | 2,118 | | |
Other intangible assets
|
| | | | 1,812 | | | | | | 1,851 | | |
Investments and noncurrent receivables
|
| | | | 56 | | | | | | 67 | | |
Deferred income tax assets
|
| | | | 19 | | | | | | 22 | | |
Deferred charges and other assets
|
| | | | 44 | | | | | | 45 | | |
Total Other Assets
|
| | | | 4,024 | | | | | | 4,103 | | |
Total Assets
|
| | | $ | 6,538 | | | | | $ | 6,462 | | |
Liabilities and Equity | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 531 | | | | | $ | 463 | | |
Income taxes payable
|
| | | | 79 | | | | | | 84 | | |
Accrued and other current liabilities
|
| | | | 106 | | | | | | 139 | | |
Total Current Liabilities
|
| | | | 716 | | | | | | 686 | | |
Other Noncurrent Obligations | | | | | | | | | | | | | |
Deferred income tax liabilities
|
| | | | 413 | | | | | | 443 | | |
Other noncurrent obligations
|
| | | | 60 | | | | | | 63 | | |
Total Other Noncurrent Obligations
|
| | | | 473 | | | | | | 506 | | |
Total Liabilities
|
| | | | 1,189 | | | | | | 1,192 | | |
Commitments and Contingent Liabilities (Note 8) | | | | | | | | | | | | | |
Equity | | | | | | | | | | | | | |
Parent company net investment
|
| | | | 5,321 | | | | | | 5,182 | | |
Accumulated other comprehensive loss
|
| | | | (152) | | | | | | (93) | | |
Total Mobility & Materials Businesses Equity
|
| | | | 5,169 | | | | | | 5,089 | | |
Noncontrolling interests
|
| | | | 180 | | | | | | 181 | | |
Total Equity
|
| | | | 5,349 | | | | | | 5,270 | | |
Total Liabilities and Equity
|
| | | $ | 6,538 | | | | | $ | 6,462 | | |
(In millions)
For the three months ended March 31, |
| |
2022
|
| |
2021
|
| ||||||
Operating Activities | | | | | | | | | | | | | |
Net (loss) income
|
| | | $ | (14) | | | | | $ | 126 | | |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
|
| | | | | | | | | | | | |
Depreciation of property, plant and equipment
|
| | | | 25 | | | | | | 25 | | |
Amortization of definite-lived intangible assets
|
| | | | 33 | | | | | | 33 | | |
Stock-based compensation
|
| | | | — | | | | | | 2 | | |
Credit for deferred income tax and other tax related items
|
| | | | (29) | | | | | | (34) | | |
Equity in losses (earnings) of affiliates
|
| | | | 1 | | | | | | (3) | | |
Changes in assets and liabilities:
|
| | | | | | | | | | | | |
Accounts and notes receivable
|
| | | | (77) | | | | | | (27) | | |
Inventories
|
| | | | (103) | | | | | | (94) | | |
Accounts payable
|
| | | | 83 | | | | | | 75 | | |
Other assets and liabilities, net
|
| | | | (62) | | | | | | (3) | | |
Cash (used in) provided by operating activities
|
| | | | (143) | | | | | | 100 | | |
Investing Activities | | | | | | | | | | | | | |
Capital expenditures
|
| | | | (21) | | | | | | (13) | | |
Cash distributions from equity affiliates
|
| | | | 12 | | | | | | — | | |
Cash used for investing activities
|
| | | | (9) | | | | | | (13) | | |
Financing Activities | | | | | | | | | | | | | |
(Distributions to) contributions from noncontrolling interests
|
| | | | (2) | | | | | | 4 | | |
Net transfers from (to) Parent
|
| | | | 154 | | | | | | (90) | | |
Cash provided by (used for) financing activities
|
| | | | 152 | | | | | | (86) | | |
Increase in cash and cash equivalents
|
| | | | — | | | | | | 1 | | |
Cash and cash equivalents at beginning of period
|
| | | | 80 | | | | | | 70 | | |
Cash and cash equivalents at end of period
|
| | | $ | 80 | | | | | $ | 71 | | |
(In millions)
|
| |
Parent Company
Net Investment |
| |
Accumulated Other
Comprehensive Income (Loss) |
| |
Total Mobility &
Materials Businesses Equity |
| |
Non-controlling
Interests |
| |
Total Equity
|
| |||||||||||||||
Balance at December 31, 2020
|
| | | $ | 5,150 | | | | | $ | 45 | | | | | $ | 5,195 | | | | | $ | 171 | | | | | $ | 5,366 | | |
Net income
|
| | | | 121 | | | | | | — | | | | | | 121 | | | | | | 5 | | | | | | 126 | | |
Other comprehensive loss
|
| | | | — | | | | | | (70) | | | | | | (70) | | | | | | — | | | | | | (70) | | |
Contributions from noncontrolling interests
|
| | | | — | | | | | | — | | | | | | — | | | | | | 4 | | | | | | 4 | | |
Net transfers to Parent
|
| | | | (88) | | | | | | — | | | | | | (88) | | | | | | — | | | | | | (88) | | |
Balance at March 31, 2021
|
| | | $ | 5,183 | | | | | $ | (25) | | | | | $ | 5,158 | | | | | $ | 180 | | | | | $ | 5,338 | | |
Balance at December 31, 2021
|
| | | $ | 5,182 | | | | | $ | (93) | | | | | $ | 5,089 | | | | | $ | 181 | | | | | $ | 5,270 | | |
Net (loss) income
|
| | | | (15) | | | | | | — | | | | | | (15) | | | | | | 1 | | | | | | (14) | | |
Other comprehensive loss
|
| | | | — | | | | | | (59) | | | | | | (59) | | | | | | — | | | | | | (59) | | |
Distributions to noncontrolling interests
|
| | | | — | | | | | | — | | | | | | — | | | | | | (2) | | | | | | (2) | | |
Net transfers from Parent
|
| | | | 154 | | | | | | — | | | | | | 154 | | | | | | — | | | | | | 154 | | |
Balance at March 31, 2022
|
| | | $ | 5,321 | | | | | $ | (152) | | | | | $ | 5,169 | | | | | $ | 180 | | | | | $ | 5,349 | | |
Note
|
| | | | |
Page
|
| |||
| | | | | | F-37 | | | ||
| | | | | | F-37 | | | ||
| | | | | | F-38 | | | ||
| | | | | | F-39 | | | ||
| | | | | | F-39 | | | ||
| | | | | | F-40 | | | ||
| | | | | | F-40 | | | ||
| | | | | | F-40 | | | ||
| | | | | | F-41 | | | ||
| | | | | | F-41 | | |
(In millions)
For the three months ended March 31, |
| |
2022
|
| |
2021
|
| ||||||
Advanced Solutions
|
| | | $ | 147 | | | | | $ | 166 | | |
Engineering Polymers
|
| | | | 587 | | | | | | 501 | | |
Performance Resins
|
| | | | 155 | | | | | | 159 | | |
Total
|
| | | $ | 889 | | | | | $ | 826 | | |
(In millions)
For the three months ended March 31, |
| |
2022
|
| |
2021
|
| ||||||
Selling and administrative expenses
|
| | | $ | 38 | | | | | $ | 37 | | |
Research and development expenses
|
| | | | 6 | | | | | | 6 | | |
Cost of sales
|
| | | | 4 | | | | | | 3 | | |
Integration and separation costs(1)
|
| | | | 96 | | | | | | 1 | | |
Total
|
| | | $ | 144 | | | | | $ | 47 | | |
(In millions)
For the three months ended March 31, |
| |
2022
|
| |
2021
|
| ||||||
Cash pooling and general financing activities
|
| | | $ | 294 | | | | | $ | (50) | | |
Less: Corporate cost allocations
|
| | | | 144 | | | | | | 47 | | |
Less: Benefit from income taxes
|
| | | | (4) | | | | | | (9) | | |
Total net transfers from (to) Parent per interim Combined Statements of Changes in Net Parent Investment
|
| | | | 154 | | | | | | (88) | | |
Stock-based compensation
|
| | | | — | | | | | | (2) | | |
Net transfers from (to) Parent per interim Combined Statements of Cash Flows
|
| | | $ | 154 | | | | | $ | (90) | | |
(In millions)
For the three months ended March 31, |
| |
2022
|
| |
2021
|
| ||||||
Foreign exchange gains, net
|
| | | $ | 7 | | | | | $ | 1 | | |
Non-operating pension credit
|
| | | | 4 | | | | | | 3 | | |
Miscellaneous expense, net
|
| | | | (4) | | | | | | (6) | | |
Sundry income (expense), net
|
| | | $ | 7 | | | | | $ | (2) | | |
(In millions)
|
| |
March 31, 2022
|
| |
December 31, 2021
|
| ||||||
Finished goods
|
| | | $ | 503 | | | | | $ | 446 | | |
Work in process
|
| | | | 79 | | | | | | 74 | | |
Raw materials
|
| | | | 163 | | | | | | 130 | | |
Supplies
|
| | | | 40 | | | | | | 40 | | |
Total inventories
|
| | | $ | 785 | | | | | $ | 690 | | |
(In millions)
|
| |
Goodwill
|
| |||
Balance at December 31, 2021
|
| | | $ | 2,118 | | |
Currency Translation Adjustment
|
| | | | (25) | | |
Balance at March 31, 2022
|
| | | $ | 2,093 | | |
| | |
March 31, 2022
|
| |
December 31, 2021
|
| ||||||||||||||||||||||||||||||
(In millions)
|
| |
Gross
Carrying Amount |
| |
Accumulated
Amort |
| |
Net
|
| |
Gross
Carrying Amount |
| |
Accumulated
Amort |
| |
Net
|
| ||||||||||||||||||
Intangible assets with finite lives: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Developed technology
|
| | | $ | 585 | | | | | $ | (197) | | | | | $ | 388 | | | | | $ | 585 | | | | | $ | (186) | | | | | $ | 399 | | |
Customer-related
|
| | | | 1,636 | | | | | | (400) | | | | | | 1,236 | | | | | | 1,635 | | | | | | (371) | | | | | | 1,264 | | |
Other
|
| | | | 9 | | | | | | (1) | | | | | | 8 | | | | | | 9 | | | | | | (1) | | | | | | 8 | | |
Total other intangible assets with finite lives
|
| | | $ | 2,230 | | | | | $ | (598) | | | | | $ | 1,632 | | | | | $ | 2,229 | | | | | $ | (558) | | | | | $ | 1,671 | | |
Intangible assets with indefinite lives: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trademarks/tradenames
|
| | | | 180 | | | | | | — | | | | | | 180 | | | | | | 180 | | | | | | — | | | | | | 180 | | |
Total other intangible assets with indefinite lives
|
| | | | 180 | | | | | | — | | | | | | 180 | | | | | | 180 | | | | | | — | | | | | | 180 | | |
Total
|
| | | $ | 2,410 | | | | | $ | (598) | | | | | $ | 1,812 | | | | | $ | 2,409 | | | | | $ | (558) | | | | | $ | 1,851 | | |
(In millions)
|
| |
March 31, 2022
|
| |
December 31, 2021
|
| ||||||
Operating Leases | | | | | | | | | | | | | |
Operating lease right-of-use assets(1)
|
| | | $ | 42 | | | | | $ | 44 | | |
Current operating lease liabilities(2)
|
| | | | 7 | | | | | | 8 | | |
Noncurrent operating lease liabilities(3)
|
| | | | 35 | | | | | | 36 | | |
Total operating lease liabilities
|
| | | $ | 42 | | | | | $ | 44 | | |
(In millions)
For the three months ended March 31, |
| |
Cumulative
Translation Adj |
| |
Total
|
| ||||||
2021 | | | | | | | | | | | | | |
Balance at January 1, 2021
|
| | | $ | 45 | | | | | $ | 45 | | |
Other comprehensive loss before reclassifications
|
| | | | (70) | | | | | | (70) | | |
Net other comprehensive loss
|
| | | $ | (70) | | | | | $ | (70) | | |
Balance at March 31, 2021
|
| | | $ | (25) | | | | | $ | (25) | | |
2022 | | | | | | | | | | | | | |
Balance at January 1, 2022
|
| | | $ | (93) | | | | | $ | (93) | | |
Other comprehensive loss before reclassifications
|
| | | | (59) | | | | | | (59) | | |
Net other comprehensive loss
|
| | | $ | (59) | | | | | $ | (59) | | |
Balance at March 31, 2022
|
| | | $ | (152) | | | | | $ | (152) | | |
| | |
Page
|
| |||
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| | | | 17 | | | |
| | | | 17 | | |
| MUFG | | |
SMBC Nikko
|
| |
UniCredit
|
| |
US Bancorp
|
|
|
Morgan Stanley
|
| |
PNC Capital Markets LLC
|
| ||||||
| Goldman Sachs & Co. LLC | | |
Santander
|
| |
Standard Chartered Bank
|
| |
TD Securities
|
|
Exhibit 107
Calculation of Filing Fee Tables
424(b)(5)1
(Form Type)
Celanese US Holdings LLC (Issuer)
Celanese Corporation (Parent Guarantor)
Celanese Acetate LLC (Subsidiary Guarantor)
Celanese Americas LLC (Subsidiary Guarantor)
Celanese Chemicals, Inc. (Subsidiary Guarantor)
Celanese Global Relocation LLC (Subsidiary Guarantor)
Celanese International Corporation (Subsidiary Guarantor)
Celanese Ltd. (Subsidiary Guarantor)
Celanese Sales U.S. Ltd. (Subsidiary Guarantor)
Celtran, Inc. (Subsidiary Guarantor)
CNA Holdings LLC (Subsidiary Guarantor)
KEP Americas Engineering Plastics, LLC (Subsidiary Guarantor)
Ticona Fortron Inc. (Subsidiary Guarantor)
Ticona LLC (Subsidiary Guarantor)
Ticona Polymers, Inc. (Subsidiary Guarantor)
(Exact Name of Registrant as Specified in its Charter)
Table 1: Newly Registered and Carry Forward Securities
Security
Type | Security
Class Title | Fee
Calculation or Carry Forward Rule | Amount Registered2 | Proposed
Maximum Offering Price Per Unit | Maximum
Aggregate Offering Price | Fee
Rate | Amount
of Registration Fee | Carry
Forward Form Type | Carry
Forward File Number | Carry
Forward Initial Effective Date | Filing
Fee Previously Paid In Connection with Unsold Securities to be Carried Forward | |||||||||||||||||||||||
Newly Registered Securities | ||||||||||||||||||||||||||||||||||
Fees to Be Paid | Debt | 4.777% Senior Notes due 2026 | Rule 457(r) | $ | 1,009,800,000 | 100.000 | % | $ | 1,009,800,000 | 0.0000927 | $ | 93,608.46 | ||||||||||||||||||||||
Debt | 5.337% Senior Notes due 2029 | Rule 457(r) | $ | 504,900,000 | 99.996 | % | $ | 504,879,804 | 0.0000927 | $ | 46,802.36 | |||||||||||||||||||||||
Carry Forward Securities | ||||||||||||||||||||||||||||||||||
Carry Forward Securities | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | ||||||||||||||||||||||||
Total Offering Amounts | $ | 1,514,679,804 | $ | 140,410.82 | ||||||||||||||||||||||||||||||
Total Fees Previously Paid | --- | |||||||||||||||||||||||||||||||||
Total Fee Offsets | ---- | |||||||||||||||||||||||||||||||||
Net Fee Due | $ | 140,410.82 |
1 | Final Prospectus Supplement |
2 | The amount to be registered and proposed maximum aggregate offering price is based on a €/$ exchange rate of €1.00/$1.0098 as of July 11, 2022. |
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