Celanese Corporation

07/22/2021 | Press release | Distributed by Public on 07/22/2021 14:46

Non-US GAAP Financial Measures and Supplemental Information (Form 8-K)

Non-US GAAP Financial Measures and Supplemental Information
July 22, 2021
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/Financial Document Library 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/Financial Document Library 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
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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.
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.
•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.
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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.
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Table 1
Adjusted EBIT and Operating EBITDA - Reconciliation of Non-GAAP Measures - Unaudited
Q2 '21 Q1 '21 2020 Q4 '20 Q3 '20 Q2 '20 Q1 '20
(In $ millions)
Net earnings (loss) attributable to Celanese Corporation
538 322 1,985 1,453 207 107 218
(Earnings) loss from discontinued operations
4 1 12 - 2 3 7
Interest income (4) (1) (6) (2) (1) (1) (2)
Interest expense 24 25 109 26 28 27 28
Income tax provision (benefit) 116 85 247 117 30 35 65
Certain Items attributable to Celanese Corporation (Table 8)
13 50 (1,216) (1,294) 24 28 26
Adjusted EBIT 691 482 1,131 300 290 199 342
Depreciation and amortization expense(1)
90 88 344 87 88 86 83
Operating EBITDA 781 570 1,475 387 378 285 425
Q2 '21 Q1 '21 2020 Q4 '20 Q3 '20 Q2 '20 Q1 '20
(In $ millions)
Engineered Materials 1 2 5 2 1 - 2
Acetate Tow - - - - - - -
Acetyl Chain - - 1 - - 1 -
Other Activities(2)
- - - - - - -
Accelerated depreciation and amortization expense
1 2 6 2 1 1 2
Depreciation and amortization expense(1)
90 88 344 87 88 86 83
Total depreciation and amortization expense
91 90 350 89 89 87 85
______________________________
(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).
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Table 2 - Supplemental Segment Data and Reconciliation of Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures - Unaudited
Q2 '21 Q1 '21 2020 Q4 '20 Q3 '20 Q2 '20 Q1 '20
(In $ millions, except percentages)
Operating Profit (Loss) / Operating Margin
Engineered Materials 123 18.0 % 130 20.2 % 235 11.3 % 62 10.8 % 84 16.0 % (13) (3.1) % 102 18.1 %
Acetate Tow 24 17.4 % 16 13.4 % 118 22.7 % 30 22.4 % 30 23.3 % 31 24.4 % 27 20.9 %
Acetyl Chain(1)
516 36.6 % 251 23.8 % 563 17.9 % 186 20.4 % 121 15.6 % 121 18.3 % 135 16.9 %
Other Activities(2)
(96) (71) (252) (75) (51) (56) (70)
Total 567 25.8 % 326 18.1 % 664 11.7 % 203 12.8 % 184 13.0 % 83 7.0 % 194 13.3 %
Less: Net Earnings (Loss) Attributable to NCI(1)
2 1 7 1 2 2 2
Operating Profit (Loss) Attributable to Celanese Corporation 565 25.7 % 325 18.1 % 657 11.6 % 202 12.7 % 182 12.9 % 81 6.8 % 192 13.2 %
Operating Profit (Loss) / Operating Margin Attributable to Celanese Corporation
Engineered Materials 123 18.0 % 130 20.2 % 235 11.3 % 62 10.8 % 84 16.0 % (13) (3.1) % 102 18.1 %
Acetate Tow 24 17.4 % 16 13.4 % 118 22.7 % 30 22.4 % 30 23.3 % 31 24.4 % 27 20.9 %
Acetyl Chain(1)
514 36.5 % 250 23.7 % 556 17.7 % 185 20.3 % 119 15.3 % 119 18.0 % 133 16.6 %
Other Activities(2)
(96) (71) (252) (75) (51) (56) (70)
Total 565 25.7 % 325 18.1 % 657 11.6 % 202 12.7 % 182 12.9 % 81 6.8 % 192 13.2 %
Equity Earnings and Dividend Income, Other Income (Expense) Attributable to Celanese Corporation
Engineered Materials 32 25 115 15 21 26 53
Acetate Tow 37 41 126 29 28 32 37
Acetyl Chain 2 2 5 2 2 - 1
Other Activities(2)
4 1 19 4 5 5 5
Total 75 69 265 50 56 63 96
Non-Operating Pension and Other Post-Retirement Employee Benefit (Expense) Income Attributable to Celanese Corporation
Engineered Materials - - 1 1 - - -
Acetate Tow - - - - - - -
Acetyl Chain - - - - - - -
Other Activities(2)
38 38 16 (67) 28 27 28
Total 38 38 17 (66) 28 27 28
Gain (Loss) On Sale of Investments in Affiliates
Engineered Materials - - 1,408 1,408 - - -
Acetate Tow - - - - - - -
Acetyl Chain - - - - - - -
Other Activities(2)
- - - - - - -
Total - - 1,408 1,408 - - -
Certain Items Attributable to Celanese Corporation(Table 8)
Engineered Materials 6 5 (1,356) (1,404) 11 27 10
Acetate Tow 1 4 5 - 1 1 3
Acetyl Chain (2) 30 7 - 5 (3) 5
Other Activities(2)
8 11 128 110 7 3 8
Total 13 50 (1,216) (1,294) 24 28 26
___________________________
(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).
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Table 2 - Supplemental Segment Data and Reconciliation of Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures - Unaudited (cont.)
Q2 '21 Q1 '21 2020 Q4 '20 Q3 '20 Q2 '20 Q1 '20
(In $ millions, except percentages)
Adjusted EBIT / Adjusted EBIT Margin
Engineered Materials 161 23.6 % 160 24.8 % 403 19.4 % 82 14.3 % 116 22.1 % 40 9.5 % 165 29.3 %
Acetate Tow 62 44.9 % 61 51.3 % 249 48.0 % 59 44.0 % 59 45.7 % 64 50.4 % 67 51.9 %
Acetyl Chain 514 36.5 % 282 26.7 % 568 18.0 % 187 20.5 % 126 16.2 % 116 17.5 % 139 17.4 %
Other Activities(2)
(46) (21) (89) (28) (11) (21) (29)
Total 691 31.4 % 482 26.8 % 1,131 20.0 % 300 18.9 % 290 20.6 % 199 16.7 % 342 23.4 %
Depreciation and Amortization Expense(1)
Engineered Materials 34 33 129 32 33 32 32
Acetate Tow 9 10 36 10 9 9 8
Acetyl Chain 43 41 162 41 41 41 39
Other Activities(2)
4 4 17 4 5 4 4
Total 90 88 344 87 88 86 83
Operating EBITDA / Operating EBITDA Margin
Engineered Materials 195 28.6 % 193 29.9 % 532 25.6 % 114 19.9 % 149 28.3 % 72 17.1 % 197 35.0 %
Acetate Tow 71 51.4 % 71 59.7 % 285 54.9 % 69 51.5 % 68 52.7 % 73 57.5 % 75 58.1 %
Acetyl Chain 557 39.5 % 323 30.6 % 730 23.2 % 228 25.1 % 167 21.5 % 157 23.7 % 178 22.3 %
Other Activities(2)
(42) (17) (72) (24) (6) (17) (25)
Total 781 35.5 % 570 31.7 % 1,475 26.1 % 387 24.3 % 378 26.8 % 285 23.9 % 425 29.1 %
___________________________
(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).
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Table 3
Adjusted Earnings (Loss) per Share - Reconciliation of a Non-GAAP Measure - Unaudited
Q2 '21 Q1 '21 2020 Q4 '20 Q3 '20 Q2 '20 Q1 '20
per share 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
542 4.81 323 2.83 1,997 16.85 1,453 12.50 209 1.76 110 0.93 225 1.88
Income tax provision (benefit)
116 85 247 117 30 35 65
Earnings (loss) from continuing operations before tax
658 408 2,244 1,570 239 145 290
Certain Items attributable to Celanese Corporation(Table 8)
13 50 (1,216) (1,294) 24 28 26
Refinancing and related expenses
- - - - - - -
Adjusted earnings (loss) from continuing operations before tax
671 458 1,028 276 263 173 316
Income tax (provision) benefit on adjusted earnings(1)
(105) (64) (123) (33) (32) (18) (41)
Adjusted earnings (loss) from continuing operations(2)
566 5.02 394 3.46 905 7.64 243 2.09 231 1.95 155 1.30 275 2.29
Diluted shares (in millions)(3)
Weighted average shares outstanding
112.3 113.5 117.8 115.7 118.0 118.3 119.3
Incremental shares attributable to equity awards
0.5 0.5 0.7 0.6 0.6 0.5 0.6
Total diluted shares 112.8 114.0 118.5 116.3 118.6 118.8 119.9
______________________________
(1)Calculated using adjusted effective tax rates (Table 3a) as follows:
Q2 '21 Q1 '21 2020 Q4 '20 Q3 '20 Q2 '20 Q1 '20
(In percentages)
Adjusted effective tax rate
16 14 12 12 12 10 13
(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)
2020 12.4 6.5
(3)Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.
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Table 3a
Adjusted Tax Rate - Reconciliation of a Non-GAAP Measure - Unaudited
Estimated Actual
2021 2020
(In percentages)
US GAAP annual effective tax rate 18 11
Discrete quarterly recognition of GAAP items(1)
(1) 12
Tax impact of other charges and adjustments(2)
(2) (9)
Utilization of foreign tax credits (1) (3)
Changes in valuation allowances, excluding impact of other charges and adjustments(3)
1 -
Other(4)
- 1
Adjusted tax rate 15 12
______________________________
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.
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Table 4
Net Sales by Segment - Unaudited
Q2 '21 Q1 '21 2020 Q4 '20 Q3 '20 Q2 '20 Q1 '20
(In $ millions)
Engineered Materials 682 645 2,081 572 526 420 563
Acetate Tow 138 119 519 134 129 127 129
Acetyl Chain 1,409 1,056 3,147 910 776 662 799
Other Activities - - - - - - -
Intersegment eliminations(1)
(31) (22) (92) (25) (20) (16) (31)
Net sales 2,198 1,798 5,655 1,591 1,411 1,193 1,460
___________________________
(1)Includes intersegment sales primarily related to the Acetyl Chain.
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Table 4a
Factors Affecting Segment Net Sales Sequentially - Unaudited
Three Months Ended June 30, 2021 Compared to Three Months Ended March 31, 2021
Volume Price Currency Other Total
(In percentages)
Engineered Materials (1) 7 - - 6
Acetate Tow 16 - - - 16
Acetyl Chain 7 27 - - 34

Total Company 4 18 - - 22
Three Months Ended March 30, 2021 Compared to Three Months Ended December 31, 2020
Volume Price Currency Other Total
(In percentages)
Engineered Materials 6 6 1 - 13
Acetate Tow (10) (1) - - (11)
Acetyl Chain (7) 23 - - 16
Total Company (3) 15 1 - 13
Three Months Ended December 31, 2020 Compared to Three Months Ended September 30, 2020
Volume Price Currency Other Total
(In percentages)
Engineered Materials 7 - 2 - 9
Acetate Tow 4 (1) - - 3
Acetyl Chain 6 10 1 - 17
Total Company 7 5 1 - 13
Three Months Ended September 30, 2020 Compared to Three Months Ended June 30, 2020
Volume Price Currency Other Total
(In percentages)
Engineered Materials 27 (6) 4 - 25
Acetate Tow 1 1 1 - 3
Acetyl Chain 18 (2) 1 - 17
Total Company 20 (3) 2 (1) 18


Three Months Ended June 30, 2020 Compared to Three Months Ended March 31, 2020
Volume Price Currency Other Total
(In percentages)
Engineered Materials (25) - - - (25)
Acetate Tow (3) 1 - - (2)
Acetyl Chain (6) (11) - - (17)
(1)
Total Company (13) (6) - 1 (18)
Three Months March 31, 2020 Compared to Three Months Ended December 31, 2019
Volume Price Currency Other Total
(In percentages)
Engineered Materials 4 - - - 4
Acetate Tow (9) (4) - - (13)
Acetyl Chain 5 (1) - - 4
Total Company 3 (1) - - 2
________________________
(1)2020 includes the effect of the acquisition of the Elotex® brand.
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Table 4b
Factors Affecting Segment Net Sales Year Over Year - Unaudited
Three Months Ended June 30, 2021 Compared to Three Months Ended June 30, 2020
Volume Price Currency Other Total
(In percentages)
Engineered Materials 43 11 8 - 62
Acetate Tow 10 (1) - - 9
Acetyl Chain 27 83 3 - 113
Total Company 31 50 4 (1) 84
Three Months Ended March 31, 2021 Compared to Three Months Ended March 31, 2020
Volume Price Currency Other Total
(In percentages)
Engineered Materials 7 2 6 - 15
Acetate Tow (8) - - - (8)
Acetyl Chain 5 25 2 - 32
Total Company 5 14 4 - 23
Three Months Ended December 31, 2020 Compared to Three Months Ended December 31, 2019
Volume Price Currency Other Total
(In percentages)
Engineered Materials 6 (4) 4 - 6
Acetate Tow (7) (3) 1 - (9)
Acetyl Chain 19 (3) 2 - 18
Total Company 12 (4) 3 - 11
Three Months Ended September 30, 2020 Compared to Three Months Ended September 30, 2019
Volume Price Currency Other Total
(In percentages)
Engineered Materials (10) (3) 2 - (11)
Acetate Tow (15) (3) - - (18)
Acetyl Chain (1) (11) 1 - (11)
Total Company (6) (7) 1 1 (11)


Three Months Ended June 30, 2020 Compared to Three Months Ended June 30, 2019
Volume Price Currency Other Total
(In percentages)
Engineered Materials (27) (1) (1) - (29)
Acetate Tow (18) (5) - - (23)
Acetyl Chain (14) (8) (1) - (23)
Total Company (20) (5) (1) 1 (25)
Three Months March 31, 2020 Compared to Three Months Ended March 31, 2019
Volume Price Currency Other Total
(In percentages)
Engineered Materials (9) (5) (1) - (15)
Acetate Tow (17) (5) - - (22)
Acetyl Chain (3) (7) (1) 1 (10)
Total Company (7) (6) (1) 1 (13)
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Table 4c
Factors Affecting Segment Net Sales Year Over Year - Unaudited
Year Ended December 31, 2020 Compared to Year Ended December 31, 2019
Volume Price Currency Other Total
(In percentages)
Engineered Materials (11) (3) 1 - (13)
Acetate Tow (14) (4) - - (18)
Acetyl Chain - (8) 1 - (7)
Total Company (5) (6) - 1 (10)
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Table 5
Free Cash Flow - Reconciliation of a Non-GAAP Measure - Unaudited
Q2 '21 Q1 '21 2020 Q4 '20 Q3 '20 Q2 '20 Q1 '20
(In $ millions, except percentages)
Net cash provided by (used in) investing activities 177 98 592 979 (78) (181) (128)
Net cash provided by (used in) financing activities (344) (371) (1,471) (933) (290) (232) (16)
Net cash provided by (used in) operating activities 427 116 1,343 274 431 379 259
Capital expenditures on property, plant and equipment (110) (92) (364) (85) (72) (88) (119)
Distributions to NCI (8) (5) (29) (8) (8) (8) (5)
Free cash flow(1)(2)
309 19 950 181 351 283 135
Net sales 2,198 1,798 5,655 1,591 1,411 1,193 1,460
Free cash flow as % of Net sales 14.1 % 1.1 % 16.8 % 11.4 % 24.9 % 23.7 % 9.2 %
______________________________
(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 or distributions to Mitsui related to our joint venture, Fairway.
(2)Excludes required debt service and finance lease payments of $30 million and $26 million for the years ended December 31, 2021 and 2020, respectively.
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Table 6
Cash Dividends Received - Unaudited
Q2 '21 Q1 '21 2020 Q4 '20 Q3 '20 Q2 '20 Q1 '20
(In $ millions)
Dividends from equity method investments 18 35 147 36 6 59 46
Dividends from equity investments without readily determinable fair values 37 42 126 28 29 32 37
Total 55 77 273 64 35 91 83
Table 7
Net Debt - Reconciliation of a Non-GAAP Measure - Unaudited
Q2 '21 Q1 '21 2020 Q4 '20 Q3 '20 Q2 '20 Q1 '20
(In $ millions)
Short-term borrowings and current installments of long-term debt - third party and affiliates
500 497 496 496 958 1,045 749
Long-term debt, net of unamortized deferred financing costs 3,156 3,135 3,227 3,227 3,140 2,989 3,356
Total debt 3,656 3,632 3,723 3,723 4,098 4,034 4,105
Cash and cash equivalents (1,054) (791) (955) (955) (615) (539) (570)
Net debt 2,602 2,841 2,768 2,768 3,483 3,495 3,535
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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:
Q2 '21 Q1 '21 2020 Q4 '20 Q3 '20 Q2 '20 Q1 '20 Income Statement Classification
(In $ millions)
Plant/office closures 3 (5) 10 7 4 (4) 3 Cost of sales / SG&A / Other (charges) gains, net / Gain (loss) on disposition of businesses and assets, net
Asset impairments 1 1 31 - 2 25 4
Cost of sales / Other (charges) gains, net
Clear Lake incident - - 4 - - - 4 Cost of sales
COVID-19 - - 5 2 1 1 1 Cost of sales / SG&A
Mergers, acquisitions and dispositions 6 - 22 5 7 3 7 Cost of sales / SG&A
Impact from natural disasters
- 41 - - - - - Cost of sales
Actuarial (gain) loss on pension and postretirement plans
- - 95 95 - - - Cost of sales / SG&A / Non-operating pension and other postretirement employee benefit (expense) income
Restructuring 2 3 25 5 11 2 7 SG&A / Other (charges) gains, net / Non-operating pension and other postretirement employee benefit (expense) income
European Commission investigation - - 2 - - 2 - Other (charges) gains, net
Commercial disputes 1 9 (1) - - (1) - Cost of sales / SG&A / Other (charges) gains, net
(Gain) loss on sale of investments in affiliates - - (1,408) (1,408) - - - Gain (loss) on sale of investments in affiliates
Other - 1 (1) - (1) - - SG&A / Gain (loss) on disposition of businesses and assets, net
Certain Items attributable to Celanese Corporation
13 50 (1,216) (1,294) 24 28 26
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Table 9
Return on Invested Capital (Adjusted) - Presentation of a Non-GAAP Measure - Unaudited
2020
(In $ millions, except percentages)
Net earnings (loss) attributable to Celanese Corporation 1,985
Adjusted EBIT(Table 1)
1,131
Adjusted effective tax rate (Table 3a)
12 %
Adjusted EBIT tax effected 995
2020 2019 Average
(In $ millions, except percentages)
Short-term borrowings and current installments of long-term debt - third parties and affiliates
496 496 496
Long-term debt, net of unamortized deferred financing costs 3,227 3,409 3,318
Celanese Corporation stockholders' equity 3,526 2,507 3,017
Invested capital 6,831
Return on invested capital (adjusted) 14.6 %
Net earnings (loss) attributable to Celanese Corporation as a percentage of invested capital
29.1 %
16